Staff Recommends City Council adopt a resolution authorizing the City Manager to execute the Electric Distribution Utility Joinder to the Clean Fuel Reward (CFR) Governance Agreement.

Since early 2017, Roseville Electric Utility has been participating in California Air Resources Board (CARB) Low Carbon Fuel Standard (LCFS) program.  Participation in the LCFS program allows the utility to receive credits and generate proceeds based on the number of electric vehicles charging in Roseville. Proceeds from the LCFS program are used to develop electric vehicle educational programs, develop customer tools related to electric vehicles, and to offer rebates for the purchase of electric vehicles and installation of charging stations.

To enhance the LCFS program, CARB, in collaboration with electric utilities throughout the state, developed a new statewide point-of-purchase rebate for electric vehicles called the CFR program. This point-of-purchase rebate will be available at any participating car dealership within the state and is funded by a portion of the electric utilities’ LCFS proceeds. Utilities participating in the LCFS program are required to enter into the CFR Governance Agreement.

The CFR Governance Agreement establishes and defines the oversight and administrative structure for the new CFR program, the Steering and Advisory committees, the solicitation process for selecting program implementers, program costs, cost sharing, and various risk mitigation measures. Executing the agreement allows Roseville Electric Utility to continue to participate in the LCFS program and generate proceeds to support electric vehicle programs in the community.

Roseville Electric Utility’s initial cost is $136,614 and is due by January 31, 2021. Following the initial cost, the utility will annually transfer 20% of certain LCFS program proceeds to the CFR program through 2022, and 25% beginning in 2023. Funding for this agreement is available from the LCFS program proceeds and will be included in the utility's proposed FY 2020-21 budget.

The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.  Participation in a clean fuel reward program meets the above criteria and is not subject to CEQA.  No additional environmental review is required.

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Dominick Casey, City Manager