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HomeMy WebLinkAboutStaff Report 2509-5165, Staff Report 2507-5023CITY OF PALO ALTO Climate Action and Sustainability Committee Friday, September 19, 2025   Agenda Item     2.Review and Discussion of Design Guidelines for Successor to Current Multi-family Electric Vehicle Charger Program; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review Late Packet Report Added, Staff Presentation Climate Action and Sustainability Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: September 19, 2025 Report #:2509-5165 TITLE Review and Discussion of Design Guidelines for Successor to Current Multi-family Electric Vehicle Charger Program; CEQA Status: Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review This will be a late packet report published on September 11, 2025. 7 9 0 3 Climate Action and Sustainability Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: September 19, 2025 Report #:2507-5023 TITLE Review and Discussion of Design Guidelines for Successor to Current Multi-family Electric Vehicle Charger Program; CEQA Status - Under CEQA Guidelines Section 15183, Projects Consistent with an Existing General or Comprehensive Plan do not Require Additional CEQA Review RECOMMENDATION Staff recommends that the Climate Action and Sustainability Committee (CASC) recommend the City Council adopt Design Guidelines for Successor to Current Multi-family Electric Vehicle Charger Program. EXECUTIVE SUMMARY The City has had success expanding EV access for multi-family buildings with its current multi- family EV program, but this program’s success has required substantial incentive money, meaning it is not financially scalable. The City must experiment with new program financial models to provide service more broadly and at a greater scale. Gathering input from several multi-family EV charger installers and operators, staff developed the attached program design guidelines. The guidelines focus on financial models aimed at scaling installations community- wide and implementation strategies aimed at serving different types of multi-family buildings with different levels of EV adoption utilizing a variety of EV charging technologies. They focus on deploying shared charging at low levels of adoption and individual chargers where demand supports them. They specify grid-friendly installations and inclusion of active and shared transportation facilities where appropriate. And they highlight the need for complementary programming to help drive adoption of e-mobility and use of active and shared transportation. Since 2017, the City has run an EV Charger Rebate Program providing incentives and technical assistance to help multi-family property owners and condo associations install electric vehicle (EV) charging. This program has to date resulted in 325 shared EV chargers across 26 multi- family residential buildings representing a total of 1,324 units, or about 12.4% of the multi- 7 9 0 3 family units in Palo Alto. However, to reach the community’s climate goals, multi-family residents will need significantly greater EV charger access. The EV Charger Needs Assessment study done in support of the E-Mobility Strategic Roadmap1 found that providing EV charger access at home is more cost-effective than providing public charging to serve that same need. BACKGROUND 2 requires that 55% of residents adopt EVs, including 33% of multi-family residents. As of the end of 2024, EVs accounted for 19.3% of all vehicle registrations in Palo Alto; only 15.7% of all EVs in Palo Alto were registered to multifamily addresses, while 79.3% were registered to single family homes. EV charging access has been one of the major barriers to multi-family EV adoption as multifamily residents have little to no direct ability to install their own charging units and multifamily property owners/managers/HOAs often are dealing with competing priorities, may lack subject matter expertise, and face complex decision-making processes, challenging infrastructure installations, high out-of-pocket costs, and electric service capacity constraints when considering more comprehensive EV charging infrastructure projects. ANALYSIS 1 City Council, August 18, 2025, Staff and the Climate Action and Sustainability Committee Recommendation to Acc ept the E-Mobility Strategic Roadmap, Attachment B, https://cityofpaloalto.primegov.com/meetings/ItemWithTe mplateType?id=8714&meetingTemplateType=2&compiledMeetingDocumentId=15432 2 AECOM Palo Alto Action Impact Memo, June 7, 2021, page 10, https://www.paloalto.gov/files/assets/public/v/2/sustainability/reports/aecom-palo-alto-action-impact- memo_final_rev-210607.pdf 7 9 0 3 owners typically look for a 2-4 year payback period for these kinds of investments, the surcharge can significantly increase the charging rate for the driver. The EVSP typically adds a second smaller surcharge to cover billing management and charger maintenance. The EVSP may also collect revenues from the State’s Low Carbon Fuel Standard (LCFS) program, which can help keep the surcharges lower. 7 9 0 3 on-street charging or mobility hubs within commercial or nonprofit parking lots could also support multi-family complexes with only a few EV drivers while also serving as a broader community amenity. The Program Design Guidelines reflect the need for these services. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT •Insight on how projects are currently funded (as described earlier in the report) •Various recommendations on regulatory changes to simplify installation, including: o allowing a separate service for EV charging, o being able to use residential-type panels for EV circuits, o changes to requirements about shutoff switches, o use of managed charging to avoid transformer upgrades, o ability to prewire future installations without impacting transformer load calculations, and o standard pre-approved equipment setups that could be permitted quickly. 7 9 0 3 •Sentiment that financing with on-bill repayment could be quite compelling if the terms were right and it increased availability of funding. Some small providers are not established enough yet to access bank financing, and on-bill repayment can be more compelling to owners. Staff also solicited community feedback about EV charging, including multi-family EV charging, through the E-Mobility Strategic Roadmap development process. This included four meetings of the Climate Action and Sustainability Committee and the Working Group in 2024-2025 and various meetings on the topic of e-mobility during 2021-2023. The Program Design Guidelines align closely with the E-Mobility Strategic Roadmap, particularly: •Strategy 2’s focus on facilitating charging infrastructure in multi-family buildings (Actions 1, 3, and 4), •Strategy 3’s focus on public and shared EV charging and vehicles serving multi-family buildings (Actions 1, 2, and 3), •Strategy 4’s focus on alignment of EV infrastructure with active transportation plans and integration of micromobility infrastructure where possible (Actions 1, 2, and 3), and •Strategy 5’s focus on minimizing grid impact (Actions 1, 2, 3, and 4). ENVIRONMENTAL REVIEW Potential environmental impacts of an EV Strategic Plan (now E-Mobility Strategic Roadmap, adopted by Council on August 18, 2025, Staff Report #2507-4943) were analyzed as part of the Sustainability and Climate Action Plan (S/CAP) Addendum to the Comprehensive Plan Environmental Impact Report. On June 5, 2023 (Staff Report #2303-1158), Council certified the Addendum, which found that S/CAP programs would not result in any significant or substantially more severe effects beyond what was previously analyzed in the Comprehensive Plan EIR. Under CEQA Guidelines section 15183, projects consistent with an existing general or comprehensive plan do not require additional CEQA review. ATTACHMENTS Attachment A: Design Guidelines for Successor to Multi-family Electric Vehicle Charger Program APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Design Guidelines for Successor to Current Multi-Family Electric Vehicle Charger Program These design guidelines are meant to guide development of an electric vehicle (EV) charging program designed to meet current EV charging demands, anticipate market- and policy-driven charging trends, and inspire future electric charging demand specifically for the multi-family customer segment. Program goals and scope The program should: 1. Enable convenient, affordable, and accessible EV charging for multi-family residents 2. Pilot financial designs that can be deployed community-wide with little or no additional funding from the City 3. Enable participation by a wide range of EV infrastructure providers 4. Pilot options for participation by all feasible multi-family property sizes and ownership structures with varying levels of existing EV adoption Program financial design To ensure the program is cost-effective and scalable: 1. It should provide financing (rather than up-front incentives) such as charging as a service (CaaS) that aims to reduce the impact to a property owner’s balance sheet. 2. Subsidies should be temporary, and ideally should be repaid over time. Only designated affordable housing should receive subsidies not meant to be repaid. 3. The beneficiaries of the investment – e.g. drivers and landlords – should be responsible for the repayment financing and temporary subsidies, as: a. Drivers benefit by saving on fueling and car maintenance when buying an EV b. Landlords benefit from higher rents once EV charging becomes an amenity 4. Where a landlord or homeowner’s association (HOA) pays a share of up-front project costs, the program should enable that up-front investment to be repaid in a reasonable amount of time. 5. Charging rates resulting from the program should remain attractive to drivers. 6. Charging facilities should only be built if existing and anticipated future demand will support them. Program technical design To ensure the program is accessible to a wide range of infrastructure providers serving a range of needs in the multi-family space: 1. Develop program solutions compatible with EV chargers either 1) using separate meters and/or separate utility services, or 2) installed on existing house or unit meters. 2. Upgrades to electrical infrastructure should be designed to accommodate or be easily upgraded to accommodate future on-site vehicle and building electrification, using load management and shared infrastructure to minimize the need for service upgrades. 3. The program should install facilities appropriate to the site’s EV adoption levels while enabling future expansion by using strategies such as: a. Installing chargers in individual spaces at a multi-family property when EV adoption is high enough to support cost recovery of the investment b. Installing shared chargers at a multi-family property when EV adoption is not high enough to support installation of chargers in individual spaces c. Deploying nearby public charging infrastructure (e.g. neighborhood EV charging hubs or on-street charging) when EV adoption within nearby properties does not yet support an on-site installation or when an on-site installation is technically or financially infeasible Complementary Infrastructure The program should involve deployment of infrastructure for alternative transportation (e.g. shared and micro mobility) in conjunction with EV chargers. Examples include: 1. Exterior e-bike and e-scooter charging infrastructure 2. Secure facilities for bicycles, e-bikes, and other small vehicles (interior or exterior) 3. Shared e-car, e-bike / bike, e-scooter / scooter, or other shared micromobility options Complementary Programming The program should involve outreach, engagement, and other customer-facing efforts that support the transition to e-mobility. Examples include: 1. EV advisor service / project management support to assist with technical equipment specifications, navigating City processes, connecting with contractors/EV service providers, and identifying/leveraging stackable funding opportunities 2. Property Owner / Asset Manager / HOA education and outreach campaigns, including multi-family focused EV charging workshops 3. EV and e-bike community events/showcases and educational workshops 4. Efforts that facilitate e-mobility adoption amongst income-qualified customers 5. EV-aligned building/zoning code updates and permit streamlining Electric Grid Compatibility The program should install facilities that minimize impact on the electric grid. Potential strategies include: 1. Low-power EV charging 2. Peak load and/or dynamic load management 3. EV demand response (via load management or vehicle to grid) Design Guidelines for Successor to Current Multi-Family EV Charger Program Climate Action and Sustainability Committee September 19, 2025 www.paloalto.gov 2 2Acting Now for A Resilient Future paloalto.gov/ClimateAction Background EV Rebate Program “1.0” Successes: •325 chargers installed across 26 MFR properties (1,324 units) •On-site EV charger access for >12% of all 10,649 MFR units EV Rebate Program Limitations: •Palo Alto has 577 multi-family residential properties of 3+ units, meaning that EV 1.0 has served only 4.5% of MRF properties •It cost CPAU $1.5M in incentives to support 26 MFR properties •To serve all MFR properties, it could cost CPAU $25M-$34M in incentives (assuming EV 1.0 incentive structure) New financial model needed to scale program 3 3Acting Now for A Resilient Future paloalto.gov/ClimateAction EV 2.0 Installer Feedback •Spoke with nine different companies, multiple meetings •Learned how projects are now funded – incentive-heavy •Recommendations on regulatory changes, including: –allowing a separate service for EV charging –being able to use residential-type panels for EV circuits –changes to requirements about shutoff switches –use of managed charging to avoid transformer upgrades –ability to prewire future installations without impacting transformer load calculations, and –standard pre-approved equipment setups •Financing with on-bill repayment as an alternative to incentives could be quite compelling with the right terms 4 4Acting Now for A Resilient Future paloalto.gov/ClimateAction EV 2.0 Program Goals •Vision: Meet current EV charging demands, anticipate market- and policy-driven charging trends, and inspire future electric charging demand specifically for the multi- family customer segment. •Goals: –Enable convenient, affordable, & accessible MFR EV charging –Pilot financial designs that can be deployed community-wide with little additional City funding –Enable participation by a wide range of EV charging providers –Pilot options for participation by all feasible MFR property sizes and ownership structures with varying levels of EV adoption 5 5Acting Now for A Resilient Future paloalto.gov/ClimateAction EV 2.0 Financial Design To make Program cost-effective and scalable: •Use financing rather than up-front incentives―e.g. Charging-as-a- Service―to reduce impact to property owners’ balance sheets •If needed, incentives should help repay financing and City should eventually be repaid (except for affordable housing) •Repayment should come from beneficiaries: drivers & landlords •Where property pays a share of up-front costs, allow the up-front investment to be repaid in reasonable amount of time •Resulting charging rates should remain attractive •Only build charging if demand will support it 6 6Acting Now for A Resilient Future paloalto.gov/ClimateAction EV 2.0 Technical Design To ensure Program is accessible to wide range of providers serving range of MFR needs, projects should: •Accommodate the installation of new EV meters/ service as well as have the ability to utilize existing house or unit meters •Be designed to support additional future EV chargers while avoiding service upgrades through load management and shared infrastructure •Be sized appropriate to site needs, including: a.Installing in assigned parking spaces when adoption levels are high b.Installing in shared parking spaces when adoption levels are lower c.Deploying MFR-serving on-street or public charging hubs nearby when on- site adoption levels are too low or installations are infeasible 7 7Acting Now for A Resilient Future paloalto.gov/ClimateAction EV 2.0 Complementary Design To support alternative transportation options, community engagement, project implementation, and grid reliability and resiliency, Program should: •Include e-micromobility charging, secure bike parking facilities, and electric carshare/bikeshare deployments where appropriate •Offer outreach, education, and customer-facing services such as EV advising, landlord/HOA workshops, e-mobility events and showcases, and income-qualified offerings •Foster updates to EV policies and processes such as building/ zoning code and permit streamlining •Incorporate low-power charging options, load management strategies, and demand response technologies 8 8Acting Now for A Resilient Future paloalto.gov/ClimateAction Staff Recommendation Staff recommends that the Climate Action and Sustainability Committee (CASC) recommend the City Council adopt Design Guidelines for Successor to Current Multi-family Electric Vehicle Charger Program