AGENDA DATE: 5/15/2024
TITLE:
Title
Schedule a Public Hearing to Consider an Electric Vehicle Charging Fee Ordinance
BODY
SUBJECT/PROPOSAL/REQUEST: Schedule a public hearing to consider the Ordinance to Establish Fee Rates for County-Owned Electric Vehicle Charging Stations
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Wall, Rosenberg, Bessette, Stewart, Dumars, Strother, Mowry
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Albemarle County’s Climate Action Plan target is to reduce greenhouse gas emissions in the community by 45% from 2008 levels by 2030 and to achieve net zero carbon by 2050. Transportation emissions are estimated to account for 48% of the emissions in Albemarle County. Leveraging County assets to facilitate the expansion of electric vehicle charging equipment to encourage the use of electric vehicles is essential to meeting community greenhouse gas emission reduction goals.
In 2021, the County installed electric vehicle (EV) chargers in the County Office Building parking lot for use by the general public. The total project cost was $333,008, including grant funds and $100,000 of Board dedicated climate action funds. Since commissioning, the County has hosted approximately 8,000 unique drivers at the county-owned facilities, dispensing over 696 mega-watt-hours of electricity, for an accumulated greenhouse gas emissions savings of over 487 metric tons.
At the time of installation, state agencies and localities were not permitted to assess fees for electricity distribution. As a result, EV owners charge their EVs at County charging stations free of charge. Virginia Code § 2.2-614.5 was subsequently amended to allow government agencies to operate EV charging stations and to charge for service at prevailing rates. Other jurisdictions, including Alexandria and Fairfax County, have already established EV charging fees. A draft ordinance to establish EV charging fees to recoup the County operating expenses associated with the EV chargers is provided as Attachment A.
STRATEGIC PLAN: Infrastructure & Placemaking - Invest in infrastructure and amenities that create connection, opportunity, and well-being.
DISCUSSION: The usage of EV chargers has been increasing steadily. A review of charger data shows that usage has been rising by approximately 10% a month. Electricity fees currently cost the County roughly $4,600 monthly and continue to increase with demand. Staff estimates that electricity fees could approach $8,000 per month in FY 25. A new lease contract is expected in late FY 26 that is expected to increase monthly operating expenses by an additional $4,500 ($54,000/yr).
Staff has prepared a draft ordinance (Attachment A), an EV Fee Methodology (Attachment B), and Additional Background (Attachment C) to outline the proposed development and implementation of an EV charging fee for the County EV chargers. Staff is requesting that the Board schedule a public hearing to consider adopting the proposed ordinance and resolution at a future Board meeting.
BUDGET IMPACT: The County’s provision of retail electric vehicle charging service to the public is expected to have no financial impact on the County. Revenue is expected to cover the variable costs of transaction fees and electricity, which would be returned to the General Fund. Retail fees charged by the County to the public for EV charging services do not apply to the use of charging stations to charge the County’s fleet of electric vehicles.
RECOMMENDATION:
Recommendation
Staff recommends that the Board schedule a public hearing to consider the adoption of an ordinance allowing the County to charge a two-part fee for public use, effective July 1, 2024, for the charging of electric vehicles at County-owned charging stations, consisting of (1) a charge of $0.147 per kilowatt hour and (2) a dwell-time fee of $2.00 per hour, capped at $25.00 per session. The dwell time fee is designed to encourage users to move their EVs after their batteries are fully charged, to allow maximum community utilization of the EV chargers.
ATTACHMENTS:
A - Ordinance
B - Electric Vehicle Fee Methodology
C - Additional Background & Discussion