Back

PROPOSAL:

Execute Contract to Establish an Electric Vehicle Loan Program for State and Local Government Agencies

SYNOPSIS:

Attempts by original equipment manufacturers and California state and local agencies to encourage fleet purchases of electric vehicles have met with limited success. Some government agencies are currently required by the federal Energy Policy Act to incorporate alternative fuel vehicles into their fleets. Municipal and private fleets face this requirement in 2003. The proposed program will establish an electric vehicle/portable charger loan program, directed at state and local government fleets. The program will be managed by ARB with the cooperation of the California Department of General Services. Total project cost is $532,000. AQMD cost-share will not exceed $205,000. California Energy Commission, through an existing contract with AQMD, will provide $122,000; ARB will provide $205,000.

COMMITTEE:

Technology, March 27, 1998, fewer than three members were present and therefore, pursuant to the Procedures for Standing Committees of the Governing Board, the Committees forwards this letter without recommendation.

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract amendment with the California Energy Commission (CEC) to co-sponsor an electric vehicle loan program for state and local government fleets, in the amount of $122,000.

2. Authorize the Chairman to execute a contract with the California Air Resources Board to co-sponsor an electric vehicle loan program for government and private fleets, in an amount not to exceed $327,000, including $205,000 in AQMD funds and $122,000 in CEC funds.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

The AQMP identifies the use of alternative clean fuels in mobile sources as a key attainment strategy. The ARB has also passed LEV regulations that require light- and medium-duty vehicles to comply with increasingly stringent emission standards, including requirements for the production and sale of zero emission vehicles (ZEVs). In addition, the Federal Clean Air Act Amendments of 1990 require that a percentage of new purchases of vehicles in centrally fueled, captive fleets be AFVs. Federal, state and fuel provider fleets are currently under the mandate, and municipal and private fleets will be required to comply in 2003. In 1994, California’s Governor requested state government fleets to meet the mandates of federal fleets; in 1998, these mandates require federal and state (California) fleets to make 50% of their annual vehicle purchases AFVs. Attempts to encourage fleet purchases of electric vehicles have met with limited success because fleet operators are unfamiliar with the capabilities of electric vehicles (EVs). EVs are perceived to be an unreliable and costly technology when compared to other vehicle technologies, and they require purchase and installation of recharging infrastructure.

In April 1996, CEC Contract No. 500-95-005 was executed with the AQMD to provide funding for development of an in-vehicle navigation system and traffic data field test. Subsequently, the AQMD entered into Contract No. 960612 with Amerigon, Inc. to perform the work. Work on the navigation system and traffic data field test project was stopped in early 1997 due to technical difficulties in incorporating real-time traffic data with Amerigon’s existing in-vehicle driver navigation system. In subsequent discussions between AQMD, CEC, and Amerigon personnel, it was agreed that the project should be terminated because the technical problems jeopardized Amerigon’s ability to successfully complete the work called for under the contract. The AQMD’s contract with Amerigon was amended to reflect a partial termination and expired in February 1998.

Upon termination of the AQMD’s contract with Amerigon, CEC indicated their desire to revise the contract work statement in order to join the proposed project. The remaining CEC funding of $122,000 will be used exclusively to provide the chargers for the proposed EV Loan Program.

Proposal

ARB and the CEC propose to cost-share a program to loan electric vehicles to state and local government agencies, and private fleets, throughout California. Up to 50 EVs will be leased through the California Department of General Services (DGS) master lease agreements with the original equipment manufacturers (OEMs). These vehicles and their associated chargers will be loaned to state and local government agencies. Loan periods are expected to be approximately one month, but may vary from one day to several months. This program will result in the following:

• State and local government fleets will have access to EVs and chargers for use on a trial basis, without the barrier of high purchase price.

• Fleets will be able to develop a good understanding of EV range, reliability, operating and maintenance costs, infrastructure requirements and other data needed to make informed purchase decisions.

Benefits and Deliverables to AQMD

The proposed project addresses technologies included in the September 1997 update of the Technology Advancement Plan under Project 97M1-3, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications." Achieving federal and state clean air standards in Southern California will require emission reductions from mobile sources beyond those expected using current technologies. The AQMP relies on the expedited, implementation of advanced technologies and clean-burning fuels in Southern California to achieve these standards. Electric vehicles are zero emission vehicles, but they will only help reduce emissions if they are utilized. The proposed program will place 50 EVs with multiple fleets throughout California; 25 of the vehicles will be dedicated to Southern California.

Sole Source Justification

Section VIII(B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole source award is made under provision B.2.c.(1): the unique experience and capabilities of the proposed contractor or contractor team.

The proposed project combines the resources of state and local agencies most concerned with emission reductions and energy security, and partners these agencies with the state agency responsible for vehicle purchases and deployment. This combination will ensure that the vehicles are distributed widely to fleets throughout California; and will also ensure that the vehicles are properly maintained during the demonstration period.

ARB, as the major state agency responsible for setting the standards for lowering vehicle emissions, has an interest in facilitating the deployment of EVs in California. They will seek state and local agencies interested in demonstrating the vehicles, and will provide technical and operation information regarding the vehicles.

The California Energy Commission’s mandate is to reduce the consumption of petroleum fuels in California, thus improving our energy security. Their interest in facilitating the use of EVs is to further that goal.

The vehicles will be housed at DGS facilities throughout the state, and DGS will be responsible for maintaining, servicing and deploying the vehicles. DGS has established garage facilities throughout the state and is responsible for thousands of vehicles, including hundreds of alternative fuel vehicles. DGS has the expertise and facilities to care for the proposed vehicles.

Resource Impacts

Funding for this project is as follows:

Cost to the AQMD for the proposed EV loan program is $205,000. Through an amendment to an existing agreement with the AQMD, CEC will provide $122,000 of this funding. ARB will match the AQMD funding to purchase the vehicles, and will also provide program administration. Sufficient funds are available in the FY 1997-98 Budget from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

/ / /