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PROPOSAL:

Execute Contract for Demonstration of Electric Vehicle Rental Program

SYNOPSIS:

Successful commercialization of electric vehicles is an important factor in reducing emissions from on-road vehicles. EV Rental Cars was the only firm to respond to a competitive solicitation and has been selected to conduct an electric vehicle rental program. Total project cost is $552,000 in funds and $623,755 in-kind. AQMD’s contribution shall not exceed $200,000 in funds. ARB’s contribution will be $100,000 in funds to be passed through the AQMD, and $100,000 in-kind. The remaining balance will be co-funded by the contractor and other entities.

COMMITTEE:

Technology, January 15, 1999. Less than a quorum was present during the discussion of this item; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with EV Rental Cars in an amount not to exceed $300,000 to demonstrate an electric vehicle rental program.

Barry Wallerstein, D.Env.
Executive Officer

Background

According to the AQMP, a significant portion of the Basin’s emissions inventory is attributed to on-road mobile sources. The AQMD, through its Clean Fuels Program, seeks to develop, demonstrate and commercialize zero- and low-emission technologies in the transportation sector to meet the federal and state air quality standards. The successful commercialization of electric vehicles with the ultimate satisfaction of end users is an important part of this program. In order to accomplish this, visibility and convenient availability of these vehicles to the greatest extent possible are necessary. An electric vehicle rental program will be a positive outreach tool to achieve this goal.

At their October 9, 1998 meeting, the Governing Board approved the release of RFP #9899-12 to solicit bids for demonstration of an electric vehicle rental program in several locations with high public exposure.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

Additionally, potential bidders were notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notices of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

One proposal was received by the December 11, 1998 closing date. It was reviewed and evaluated according to established AQMD guidelines. The evaluation process involved two steps. First, the proposal was evaluated using technical criteria. The proposal receiving a score of at least 70 out of 100 points was considered technically qualified and eligible for the contract award. Next, the technically qualified proposal was evaluated using the criteria of "cost per program innovation, number, and type of electric vehicles, and direct co-funding from sources other than AQMD," as outlined in the RFP. Using this two-step selection process, the proposal from EV Rental Cars is recommended for award. A summary of the panel’s scoring is included as Attachment A.

Evaluation Panel

The three-member RFP evaluation panel consisted of two AQMD and one ARB staff. Of these panelists, three are Caucasian; one is female and two are male.

Proposal

EV Rental Car’s proposal adheres to the tasks described in the RFP’s work statement and satisfies the requirements of the RFP’s technical and cost sharing criteria. The proposal focuses on establishing a successful electric vehicle rental program at eight locations in California, with an emphasis on the South Coast Air Basin. In total, forty-four electric vehicles will be introduced at Los Angeles International, Ontario International, John Wayne, Burbank, and Sacramento International airports, and Sacramento Downtown, Beverly Hills, and Anaheim areas.

The forty-four rental vehicles will be comprised of General Motors EV1 with lead-acid and nickel-metal hydride batteries, Honda EV Plus, Ford Ranger EV, and Toyota RAV-4 EV. Budget Rent a Car will provide all vehicle rental facilities at the above locations through its contract with EV Rental Cars. At each location, an adequate number of chargers will be installed.

EV Rental Cars will implement a rental system that will be integrated with the Budget Rent a Car system, streamlining the process for customers and Budget staff. The program will be managed with the operational objective of an above-sixty-percent vehicle utilization rate. A special government employee rental rate of $39.95 per day will be guaranteed for the duration of the demonstration.

Benefits to AQMD

The proposed project is included in the September 1997 update of the Technology Advancement Plan under Projects 97M2-3 "Development and Demonstration of Conductive-Couple Charging Equipment for Electric Vehicles," 97M2-5 "Development of Electric Vehicle Infrastructure Technology," and 97M2-6 "Advanced Electric Vehicle Battery Testing and Demonstration." The AQMP relies on the expedited implementation of advanced technologies and zero-emission vehicles in Southern California to achieve air quality standards. Communities must have the most current and convenient access to available clean technologies if they are to integrate these technologies into their day-to-day operations. Public access through these types of demonstration programs can help increase consumer confidence and acceptability of electric vehicles, and expand the market share of zero emitting vehicles.

In the most recent AQMP, the average emissions from light-duty passenger cars in the South Coast Air Basin for year 2000 are estimated at 225 tons/day VOC, 1,803 tons/day CO, 188 tons/day NOx, 2.1 tons/day SOx, and 4.1 tons/day PM10. The implementation of this demonstration program will help achieve the ARB’s objective for electric vehicles having ten percent of the market share of new light-duty vehicles by year 2003. This will in turn decrease the above emissions inventory proportionally. In addition, there will be direct emissions reductions through this demonstration program due to the use of electric vehicles instead of fuel burning vehicles.

Resource Impacts

Total project cost is $552,000 in funds and $623,755 in-kind. AQMD’s contribution shall not exceed $200,000 in funds. The ARB’s contribution will be $100,000 in funds to be passed through the AQMD, and $100,000 in-kind. The in-kind contribution will consist of five Honda EV Plus vehicles to be used in the rental program for a period of three years. The total project cost will be co-funded by the following entities:

*LADWP’s commitments were made to EV Rental Cars Company for a previously funded project at Budget Rent a Car at LAX. This AQMD/ARB funded project will benefit from the infrastructure created by LADWP at LAX.

Sufficient funds are available for this project in the FY 1998-99 Budget, from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Section 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.

Attachment

A - Summary of Evaluation of Proposal Received in Response to RFP # 9899-12

Attachment A

Summary of Evaluation of Responses to RFP #9899-12

One proposal was received in response to this RFP from EV Rental Cars.

Step 1 - Technical Criteria (70 points minimum, 100 points maximum)

Step 2 - Cost and Other Factors (85 points maximum)

Total Score (100 points maximum)

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