Electric Fuel Excise Tax and Charging Fee Recommendation Copyrighted
October 2, 2023
City of Dubuque Consent Items # 05.
City Council Meeting
ITEM TITLE: Electric Fuel Excise Taxand Charging Fee Recommendation
SUM MARY: City Manager recommending City Council adopt a resolution establishing
the fee ($0.17/kWh fee)for use of public electric vehicle (EV) charging
stations in public parking facilities, to recover the state excise tax,
ChargePoint transaction fees and cloud plan, and electricity.
RESOLUTION Establishing Rates and Charges for Electric Vehicle
Charging
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution to Set EV fuel fee Resolutions
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Electric Fuel Excise Tax and Charging Fee Recommendation
DATE: September 27, 2023
Director of Sustainability Gina Bell is City Council adopt a resolution establishing the fee
($0.17/kWh fee) for use of public electric vehicle (EV) charging stations in public parking
facilities, to recover the state excise tax, ChargePoint transaction fees and cloud plan,
and electricity.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gina Bell, Director of Sustainability
Ryan Knuckey, Director of Transportation Services
Russ Stecklein, Parking Operations Supervisor
Jenny Larson, Chief Financial Officer
Randy Gehl, Public Information Officer
Dubuque
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MEMORANDUM
TO: Michael Van Milligen, City Manager
FROM: Gina Bell, Director of Sustainability
SUBJECT: Electric Fuel Excise Tax and Charging Fee Recommendation
DATE: September 19, 2023
INTRODUCTION
This memo is to request City Council adopt a resolution establishing the fee ($0.17/kWh fee)for
use of public electric vehicle (EV) charging stations in public parking facilities, to recover the
state excise tax, ChargePoint transaction fees and cloud plan, and electricity.
BACKGROUND
The City of Dubuque has been offering EV charging to the public in municipally owned parking
facilities since 2015. Electric Vehicle Supply Equipment (EVSE) was installed in the Intermodal
Ramp in September 2015. Two EVs can charge simultaneously at each of the 3 downtown
Intermodal parking ramp chargers. This amenity has been offered at no additional charge to
date.
ChargePoint is the platform that facilities charging sessions. Customers must download the
ChargePoint smartphone app. The ChargePoint app is used to initiate a charging session.
ChargePoint users are required to link a credit card to their app, even though using public EVSE
doesn't charge them currently.
The State of lowa passed HF 767 in 2019 to recover road use fees that are normally collected
by legacy fuel taxes. Battery electric vehicles (BEVs) do not use any gasoline and plug-in hybrid
vehicles (PHEVs) use far less gasoline than conventional vehicles. HF 767, which phased in
additional annual registration fees for BEVs and PHEVs starting in January 2020, also included
an excise tax of$0.026 per kilowatt hour (kWh) for EV charging at non-residential locations
beginning July 1, 2023. This excise tax will apply to Dubuque's public charging stations.
The City's Transportation Department has four expenses associated with the dispensing of
electric fuel at public charging stations: electricity, ChargePoint Plan fees, maintenance costs,
and the state excise tax on electric fuel. If the City chooses to collect a charging fee to help
recover costs through the ChargePoint platform, another expense will be added — a fee of 10%
of each transaction.
DISCUSSION
Staff evaluated calendar year 2022 and 2023-to-date utilization and expenses related to the
provision of EVSE for community use. The analysis indicates that a fee of$0.17/kWh would
significantly reduce the cost burden of providing this service while covering all taxes and help to
offset a portion of expenses while staying competitive.
It is important to note that while we continue to see growth (148°/o increase from 2022 to today)
in use of utilization of public chargers, it is reasonable to assume that once fees are
implemented, demand may decrease for drivers which have EV charging capabilities at home.
After the fee is established, we may observe that a greater proportion of those using public
chargers in the future are renters or those without access to a driveway or garage. We will
consider the equity implications of the fee as we continue to monitor the utilization of EVSE and
expenses and reevaluate the fee structure periodically.
The City Manager has authority to implement a fee for EV charging in parking ramps once the
fee amount has been adopted. Collection of fees, pending City Council approval, will go into
effect October 9, 2023. Sustainability and Transportation staff will work with the Public
Information Office to alert EVSE users of the new fee.
BUDGETIMPACT
As of 9/19/2023 at 9:55 am, the City of Dubuque owes to the State of lowa $150.85 in electric
fuel excise tax. We currently have no way to recoup this cost. It is estimated that the fee will
generate �$3700.00 per year, owing the state �$603.00 of the collected fee. The remaining
revenue will be used to offset cost of ChargePoint platform and electricity expenses.
REQUESTED ACTION
The requested action is for the City Council to set the fee at $0.17/kWh for use of public EV
charging stations.
cc: Ryan Knuckey, Director of Transportation Services
Russ Stecklein, Parking Operations Supervisor
Crenna Brumwell, City Attorney
Jenny Larson, Director of Budget and Finance
Randy Gehl, Chief Public Information Officer
Prepared by: Crenna M. Brumwell, Esp. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563)589-4100
RESOLUTION NO. 323-23
RESOLUTION ESTABLISHING RATES AND CHARGES FOR ELECTRIC VEHICLE
CHARGING
Whereas, Section 9-14-321 .631 of the City of Dubuque Code of Ordinances
authorizes the City Manager to arrange for the installation of appropriate devices to
regulate vehicles in municipal parking ramps for the collection of fees; and
Whereas, Section 9-14-321 .651 of the City of Dubuque Code of Ordinances
authorizes the City Manager to establish fees and charges for the rental of city lots or
portions of lots; and
Whereas, the State enacted legislation creating a new excise tax on electric fuel,
which requires owners of electric charging stations to report and pay to the Iowa
Department of Revenue $0.026 per kilowatt hour of electric fuel dispensed starting July
1 , 2023; and
Whereas, the City offers electric vehicle charging to the public in parking facilities;
and
Whereas, the electric vehicle charging is currently provided to the public at no cost
and the City pays the excise tax, the cost of the electricity, and the cost of the platform to
facilitate the charging session; and
Whereas, the City will be subject to the new excise tax on electric fuel; and
Whereas, the City has determined that there should be a fee for electric vehicle
charging in an amount sufficient to reimburse the City for the excise tax, the cost of the
electricity, the cost of the platform to facilitate the charging session, and the
administrative costs for managing this portion of the parking system; and
Whereas, the City has determined that a fee of $0.17 per kilowatt hour should be
assessed and periodically reviewed by the City Manager and adjusted accordingly; and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The fee of $0.17 per kilowatt hour is hereby adopted and approved.
Section 2. The City Manager is authorized to periodically review the fee and update
the fee(s) if review demonstrates the existing rate is not covering City costs.
Passed, approved, and adopted this grid day of October, 2023.
Brad Cav gh, Mayor
Attest:
Trish Gleason, Assistant City Clerk