Vancouver gas stations, parking lots without charging could pay $10,000 annual fee

Vancouver gas stations and parking lots without charging could pay $10,000 annual fee

Electric-battery car charging station at a gas station. (Shutterstock)

A proposed policy by City of Vancouver staff would enact significantly higher fees on gas stations and commercial parking lots, such as parkades, if they do not install electric-battery charging equipment at their facilities starting in the middle of this decade.

To encourage these businesses to install charging equipment, their municipal business license fee would be set at $10,000 annually if they do not make charging available starting in 2025.

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To avoid the high $10,000 business license fee, each gas station would need to install at least one DC fast charger with a total power output requirement of 50 kW, and each parking business would need to install at least four dedicated Level 2 chargers with a total power output requirement of 50 kW.

Currently, in 2022, the annual business license fees are set at $263 for gas stations, and $163 for parking businesses.

The varying fee structure would be regulated by establishing new business license categories for gas stations and commercial parking lots.

The city’s contracted consultants estimate that by 2030, as a result of the policy, there will be additional charging equipment at 21 gas stations and 80 commercial parking lots, providing a combined total of 21 DC fast chargers and 320 Level 2 chargers.

Currently across Vancouver, there are 66 gas stations and 366 commercial parking lots, but only two gas stations and about 60 parking lots offer charging.

It is anticipated the businesses could see a payback on their installation investments in about seven or eight years, based on the estimated installation cost of about $136,000 for a gas station and about $100,000 for a commercial parking lot.

Businesses will be able to keep all revenues collected from their charging services. With more cars on the road being electric, and with cars becoming more fuel efficient, this provides gas stations with the opportunity to diversify their revenues.

The municipal government could also see about $1.6 million in new annual revenue from the higher business license fees, but city staff state revenue generation is not their primary motive.

The transition to electric-battery vehicles is quickly accelerating, with the provincial government setting 2035 as their target to reach 100% electric-battery models for new car sales.

But according to a survey of residents conducted by the city, many residents indicated there is a lack of available charging spaces, which is a barrier for transitioning to electric-battery cars. This is also particularly a challenge for those who cannot install charging at home, especially for the growing population of renters.

Developing policies that encourage gas stations and parking lots to install charging is one of the 32 separate strategies under the city’s $500-million Climate Emergency Action Plan, which was approved by Vancouver City Council in Fall 2020.

City council is expected to review and decide the fee-based policies for gas stations and commercial parking lots in a public hearing later this spring.

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