BOARD MEETING DATE: September 11, 1998 AGENDA NO. 7
PROPOSAL:
Recognize Revenue from EPA and Execute Contract to Establish Electric Vehicle Loan Program for Government Agencies
SYNOPSIS:
At its April 1998 Board Meeting, the Board approved execution of a contract with the ARB to implement an electric vehicle (EV) loan program for state and local government agencies. Since then, the EPA has made $250,000 available to the AQMD through the 105 Grant process. ARB has requested to extend the loan program to three years by reducing the number of vehicles and using the additional funds provided by the EPA. The transfer of funds from EPA constitutes a budget supplement for which public notice was given under Health & Safety Code section 40720(j).
COMMITTEE:
Technology, August 28, 1998. Vice Chair Leonard Paulitz and Roy Wilson communicated their concurrence.
RECOMMENDED ACTION:
1. Recognize $250,000 in revenue from the EPA through the 105 Grant process.
2. Appropriate $250,000 from the General Fund Undesignated Fund Balance upon award of the EPA Grant 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 with the California Air Resources Board to cosponsor an electric vehicle loan program for government agencies, in an amount not to exceed $330,000 in AQMD funds.
Barry Wallerstein, D.Env.
Acting Executive Officer
Background
The AQMP identifies the use of clean alternative fuels in mobile sources as a key attainment strategy. The ARB has implemented 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. In April 1998, the AQMD Board authorized the Chairman to execute a contract with the ARB to cosponsor an electric vehicle (EV) loan program for government agencies. The intent of that program was to place 25 EVs in Southern California and 25 EVs in Northern California for one year. AQMD funding was intended to support the lease of the 25 EVs for Southern California for one year. At the April 1998 Board Meeting, the Governing Board also approved amending an existing contract with the CEC to revise the work statement in order to use CEC funding of $122,000 to provide vehicle chargers for the loan program.
ARB has requested that the AQMD support a three-year loan program with a reduced number of vehicles. At the same time, the EPA has made available a total of $250,000 through its 105 Grant process for the EV Loan Program. This action makes the previously committed District fund of $205,000 available for a separate EV Rental Program to be presented to the Board in the near future. The CEC funding of $122,000 which was allocated for expenditure during FY 97-98 needs to be re-encumbered for FY 98-99, and re-directed towards an "EV Charger Program for Southern California." This item will be presented to the Board as a separate item.
Proposal
The size of the EV Loan Program is to be changed to 18 vehicles – ten in Southern California and eight in Northern California. The AQMD will provide $80,000 for the cost of installation (wiring) for temporary chargers, and will pass through to the ARB $250,000 to be obtained from the EPA through the 105 Grant process. The ARB will contribute $205,000 towards the lease of EVs and $89,000 towards the purchase of chargers. Attachment 1 delineates the detailed cost of the program.
EVs will be housed at Department of General Services garages throughout California. The vehicles will be loaned to state and local government agencies for periods ranging from one day to several months. The intent of the program is to provide government agencies with a good understanding of EV range, reliability, and operation; and to familiarize them with EV infrastructure requirements. By providing this information, and actual driving experience, it is hoped that these agencies will decide to purchase or lease EVs in the future. AQMD will provide direction to ARB regarding the placement of vehicles with Southern California fleets. The program will be reviewed after six months. If the program is going well, and there are remaining funds, additional EVs may be leased and added to the loan program.
Benefits to AQMD
The proposed project is 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." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards.
The proposed EV loan program will place ten EVs in the Basin for a three-year period. The vehicles will be placed on a rotating basis with multiple state and local agencies in the Basin. During that three-year period, it is estimated that each EV will displace up to 10,000 miles per year of gasoline vehicle use, resulting in emission reductions of 246 lbs. ROG, 2050 lbs. of CO, and 200 lbs. of NOX (using the year 2000 emission factors in the 1997 AQMP). The loan program itself will not result in significant emission reductions. The future purchases of EVs as a result of this effort will provide the significant quantifiable emissions reductions. The objective of the loan program is to convince those agencies that borrow the vehicles to purchase EVs rather than conventional gasoline vehicles in the future.
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 federal, 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, in cooperation with the District, will provide the outreach efforts to identify government agencies interested in demonstrating the vehicles, and will provide technical and operational information regarding the vehicles.
The vehicles will be housed and serviced at DGS facilities. 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
The District will pass through $250,000 from the EPA to the ARB and will contribute $80,000 toward the installation of chargers. Sufficient funds are available in the FY 1998-99 Budget from revenues received from the state-mandated Clean Fuels Program.
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.
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. The following describes the funding sources:
| Agency | Funding | |
| ARB | $294,000 | |
| DGS | 16,000 | |
| AQMD (through EPA’s 105 Grant ) | 250,000 | |
| AQMD | 80,000 | |
| Total Projec Cost | $640,000 |
ARB will match the AQMD funding for vehicles, contribute towards the purchase and installation of EV charging capability, and will also provide administration of the program.
| Agency | Vehicle Funding | Infrastructure |
| CARB | $205,000 | $89,000 |
| SCAQMD | $250,000 (EPA 105 Grant) |
$80,000 |
| DGS | N/A | $16,000 |
| Vehicle Model | Lease Cost/Month1) | Liability Insurance ($/year) |
| GM EV1 (Pb-Acid) | 7122) | 485 |
| Honda EV Plus (Ni MH) | 687 | 485 |
| Toyota RAV4 (Ni MH) | 6482) | 485 |
| Ford Ranger (Ni MH) | 5692) | 485 |
1) These costs are higher than the ones advertised by the manufacturers due to the fact that neither the District nor the ARB are eligible for the MSRC and/or the federal tax incentive programs.
2) Includes the cost of a portable charger.
/ / /