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PROPOSAL:

Recognize Revenue from the California Energy Commission and Execute Contract to Establish an Electric Vehicle Charging Infrastructure Network

SYNOPSIS:

At the April 1998 Board Meeting, the Board approved amending an existing contract with the California Energy Commission (CEC) to revise the work statement in order to use CEC funding of $122,000 to provide vehicle chargers for an EV loan program. As a separate Board item at the September 1998 Board Meeting, the Board approved execution of a contract with the ARB to implement an EV loan program for state and local government agencies. The CEC funding of $122,000 which was allocated for expenditure during FY 97-98 needs to be appropriated to the FY 98-99 Budget, and re-directed towards an "EV Charger Program for Southern California."

COMMITTEE:

Administrative, September 18, 1998; Technology, September 25, 1998; Recommended for Approval

RECOMMENDED ACTION:

1. Recognize $122,000 in revenue from the CEC.

2. Appropriate $122,000 from the General Fund Undesignated Fund Balance upon award of the CEC funds to the Services and Supplies Major Object, Professional and Special Services Account in the Technology Advancement Office.

3. Authorize the Chairman to execute a contract amendment with the California Energy Commission (CEC) to sponsor an electric vehicle charging infrastructure network, in the amount of $122,000.

4. Authorize the Chairman to execute a contract with Edison EV for establishing an electric vehicle charging infrastructure network.

Barry R. 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, Contract No. 500-95-005 was executed with the CEC 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 electric vehicle charging infrastructure network project. The remaining CEC funding of $122,000 will be used exclusively to provide an EV charging infrastructure network for public use.

Proposal

The CEC is already under contract to the AQMD to provide $122,000. This contract amendment will redirect project funds to establish an EV charging infrastructure network to be sited at various state and local government agencies and private sector fleets throughout the Basin. Any site participating in the EV charging infrastructure network will be required to provide free public access and EV charging for any EV.

Edison EV will be under contract to the AQMD, for an amount not to exceed $122,000, to construct an EV charging infrastructure network. In conjunction with AQMD, Edison EV will site and install charging facilities at various government agencies or private sector fleet operators that agree to allow free public access. Edison EV will be responsible for the proper use, maintenance, and servicing of the facilities and provide a three-year warranty on all electrical installations.

Benefits and Deliverables to AQMD

The proposed project addresses EV charging 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 help establish an EV charging infrastructure network throughout the Basin allowing state and local government agencies, private sector fleets and the public free access. While this project will not directly provide emission reductions, it will help expedite the introduction of EVs into the marketplace and help the AQMD attain clean air standards. The EV charging facilities will be sited in areas allowing for maximum exposure of government agencies and the public to EV technology. As the EV driving public become aware of the EV charging infrastructure network this increased awareness should lead to an increased use of EVs. Fleets and private operators will be able to develop a better understanding of EV range, reliability, operating and maintenance costs, infrastructure requirements and other data needed to make informed purchase decisions.

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 Edison EV. CEC’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. Edison EV is the most qualified private contractor for designing and installing EV charging facilities on a cost effective basis.

Edison EV is the leader in the identification of new infrastructure needs and the development of appropriate equipment. Edison EV has installed chargers at more than 300 residential and approximately 500 commercial locations and is the authorized distributor of the GMATV Electronics MagneCharge inductive charger used with GM, Toyota and Nissan EV products. Edison EV is also the North American distributor for the EVI ICS-200 charging systems used with the Toyota RAV-4, Honda and Ford EVs.

Resource Impacts

Through an amendment to an existing agreement with the AQMD, CEC will provide $122,000 of this funding. No other funding is required for the completion of this project and there are no impacts on AQMD resources.

Since the appropriation of funds by the AQMD constitutes a budget supplement within the definition of Health and Safety Code 40720(j), public notice of this proposed supplement was published in the Los Angeles Daily Journal, Riverside Press Enterprise, Orange County Register, San Bernardino Sun, and the Inland Valley Daily Bulletin.

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