6.1f ERMUSR 01-08-2019 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tom Sagstetter—Conservation&Key Accounts Manager
MEETING DATE: AGENDA ITEM NUMBER:
January 8, 2019 6.1 f
SUBJECT:
Staff Update
ACTION REQUESTED:
None
DISCUSSION:
• In the last month, the level two charger downtown had 5 sessions, and provided
customers with 44 kWh of green energy. The charger in the ERMU/City Hall parking lot
had 7 sessions and provided customers with 117 kWh of green energy. The DC fast
charger at the Coborn's fuel station had 16 sessions and provided 248 kWh of green
energy to customers. The pricing at the public charging stations have now been changed
to reflect energy only. The connection fees have been eliminated. The rates for 2019 are
$0.20 for all energy at the DC Fast Charger and $0.15 for all energy at the Level Two
chargers.
• Completed the 2019 updates to the commercial rebate forms. The new forms were made
available to the public on December 28, and look better than ever thanks to our
communications coordinator. The total rebate budget for 2019 is $264,000.
• Participated in discussion with the Drive Electric Minnesota policy work group. The
upcoming year has great potential for electric vehicles and charging infrastructure as.
Phase 1 implementation ($11.75 million) of the Volkswagen(VW) settlement ramps up.
This will be a key topic as work group discussions continue for the implementation of
Phase 2 ($23.5 million) of the VW settlement.
• Began working with Dave Berg Consulting to develop a standby rate. This rate will be
utilized for large industrial customers that wish to self-generate. This rate will allow
ERMU to recover the costs of maintaining the facilities required to meet the customer's
needs should they need to rely on ERMU.
• Staff will work to meet with key commercial customers over the next couple weeks to
discuss the new rates for 2019.
• ERMU received notice that Prime Advertising&Design received a national award for
the EV/ER Electric Vehicle Wrap in 2018. The award was provided by Graphic Design
USA.
ATTACHMENT:
• Minnesota Pollution Control Agency-Executive Summary: Volkswagen Settlement
Beneficiary Mitigation Plan—April 2018
Page 1 of 1
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Minnesota's Volkswagen settlement state plan
Executive summary
The settlement
In 2016 Volkswagen Corporation was caught violating air pollution standards for nitrogen oxides (NOx) in its diesel cars
and SUVs.Their vehicles were producing 30-40 times more pollution than allowed by law.The federal government took
VW to court and on October 2, 2017,the Department of Justice and VW signed a$15 billion settlement.A portion of the
settlement—$2.9 billion—will be shared among the U.S. states and tribes, based on the number of violating vehicles
registered in each jurisdiction. Minnesota's share is$47 million. Governor Dayton designated the Minnesota Pollution
Control Agency(MPCA)to manage the settlement funds,which will be spent over 10 years on projects to offset the
excess pollution from the violating vehicles.
States can develop programs and fund projects that make the most sense for them,within the boundaries set by the
settlement. Because VW's violations involved diesel models,the settlement will fund pollution reductions from diesel
vehicles. States and tribes can only use the funds on activities outlined in the settlement, most of which involve
replacing older diesel vehicles or equipment with new ones that produce far less pollution.The replacements can use
any fuel, including diesel, propane, natural gas,and electricity. Replacements allowed under the settlement are:
• Heavy-duty and medium-duty trucks
• School,transit,and shuttle buses
• Switcher locomotives
• Ferry,tug, and tow boats
• Shore power for ocean-going vessels
• Airport ground support equipment
• Forklifts and port cargo-handling equipment
• Construction equipment(by supplementing the existing Diesel Emission Reduction Act)
Additionally, up to 15%of each state's funds may be used for electric vehicle charging infrastructure. All funds must be
spent or committed to approved projects by October 2, 2027.
Minnesota's plan
States must develop plans for using their settlement funds and submit them for approval to the Trustee managing the
funds nationally. Minnesota's plan involves three phases of funding for five grant programs, over 10 years.Once it's
approved,the MPCA can begin requesting proposals for projects and issuing grants.
Goals
The MPCA will use the state's settlement funds to support a healthy environment for all Minnesotans and achieve
significant emissions reductions across the state, especially in those communities most impacted by vehicle pollution.
Because 60%of the violating vehicles were registered in the Twin Cities metropolitan area and 40%were registered in
Greater Minnesota,the funds will be targeted using the same 60%-40% ratio. We will invest in communities
disproportionately impacted by air pollution, both in the Twin Cities area and in Greater Minnesota. In developing the
grant programs and selecting projects for funding,we will balance project costs with emissions reductions and other
benefits.
Executive summary:Volkswagen Settlement Beneficiary Mitigation Plan • April 2018 Minnesota Pollution Control Agency aq-mvp2-32d
105
Three phases
Minnesota's plan is structured in three phases,so the MPCA can seek additional input and make changes as needed
along the way.This plan addresses Phase 1(2018-2019)only.
The three phases are:
• Phase 1:$11.75 million (25% of overall funds)—2018-2019
• Phase 2:$23.5 million (50%)—2020-2023
• Phase 3:$11.75 million (25%)—2024-2027
Five grant programs in Phase 1 (2018-2019)
Minnesota will manage the VW settlement funds through five grant programs that will allow different vehicle and
equipment types to be compared with each other through the grant process. With these investments in 2018 and 2019,
the MPCA expects to reduce approximately 1,152-1,228 tons of nitrogen oxides,41-60 tons of fine particles,and 21,188-
34,751 tons of greenhouse gases.
Table:Summary of grant programs,2018-2019(phase 1)
2018-2019 grants(Phase 1) r4101
MN grant categories
Settlement category Eligible fuels • Targeted dollar
(2018-2019) Targeted-percent amount
School bus replacement All (diesel, propane, °
program School buses natural gas,electric) 20/ $2,350,000
Clean heavy-duty
on-road vehicles Transit buses,class 4-8 All(diesel, propane, 35% $4,112,500
program
trucks natural gas, electric)
Switcher locomotives,
ferries,tugs,forklifts,
Clean heavy-duty port cargo handling
off-road equipment equipment,ocean-going All (diesel, propane, 15% $1,762,500
program vessel shore power, natural gas,electric)
Diesel Emission
Reduction Act(DERA)
School buses,transit
Heavy-duty electric buses,trucks,airport $1 762
vehicle program ground support Electric 15% 500
equipment
Electric vehicle charging Zero-emission vehicle Not applicable 15% $1,762,500
stations infrastructure
Total: $11,750,000
*Percentage of available settlement funds targeted at these activities for 2018-2019
Outreach and input
The MPCA is committed to developing a program that benefits all Minnesotans and reflects the needs and desires of
people across the state.The agency sought input statewide for more than a year. Before drafting the state plan,we held
nine public meetings and four stakeholder meetings, kept interested people up to date with informational email
bulletins, received nearly 300 written comments and over 800 responses to online surveys,sought input from the
MPCA's Environmental Justice Advisory Group, and posted information and data on a website. We released a draft of
the state plan and gave Minnesotans the opportunity to tell us if we did a good job reflecting their input. We held seven
public meetings,one webinar meeting, and one stakeholder meeting, and received over 580 written comments.All the
information gathered during this process is available at www.pca.state.mn.us/vw. We also encourage anyone interested
in applying for funds in the future,to go to our website and sign up to receive our emails.
Executive summary:Volkswagen Settlement Beneficiary Mitigation Plan • April 2018 Minnesota Pollution Control Agency
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Elk River
Municipal Utilities 2019 GOVERNANCE AGENDA
Tuesday, January 8: Tuesday, February 12:
• Annual Review of Committee Charters • Review Strategic Plan and 2018 Annual
Business Plan results
Tuesday, March 12: Tuesday, April 9:
• Oath of Office • Annual Commissioner Orientation and Review
• Election of Officers Governance Responsibilities and Role
• Audit of 2018 Financial Report
• Financial Reserves Allocations
• Review 2018 Performance Metrics
Tuesday, May 14: Tuesday, June 11:
• Annual General Manager Performance •
Evaluation and Goal Setting
Tuesday, July 12: Tuesday,August 13:
• Annual Commission Performance Evaluation • Annual Business Plan—Review Proposed 2020
• Review and Update Strategic Plan Travel, Training, Dues, Subscriptions, and Fees
Budget
Tuesday, September 10: Tuesday, October 8:
• Annual Business Plan—Review Proposed 2020 • Annual Business Plan—Review Proposed 2020
Capital Projects Budget Expenses Budget
Tuesday,November 12: Tuesday, December 10:
• Annual Business Plan - Review Proposed 2020 • Adopt 2020 Official Depository,Newspaper,
Rates and Other Revenue and Regular Meeting Schedule
• Adopt 2020 Fee Schedule • Adopt 2020 Governance Agenda
• 2020 Stakeholder Communication Plan • Adopt 2020 Annual Business Plan
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