South Coast Air Quality Management District

Appropriate Funds from Clean Fuels Fund and Execute Lease and Purchase Agreements for One New Advanced Technology Vehicle and Amend Proposal For One Recently Approved Advanced Technology Vehicle for Alternative Fuel Vehicle Loan Program

SYNOPSIS:

AQMD tests and demonstrates new advanced technology vehicles with a variety of low-emission and clean-fuel technologies. As part of the Technology Advancement Alternative Fuel Vehicle Loan Program, vehicles are procured as new technologies become available. It is proposed that the AQMD lease one new Nissan 2002 Altra electric vehicle for three years. Total lease cost to the AQMD for this vehicle will not exceed $12,000, including incentive. It is also proposed to assume the lease of a Ford Th!nk City electric vehicle demonstration model for approximately two years at a cost not to exceed $6,000, including incentive.

COMMITTEE:

Technology, September 27, 2002, Recommended for Approval

RECOMMENDED ACTION:

1. Appropriate up to $18,000 from the Clean Fuels Fund to the Services and Supplies Major Object, Leases Equipment Account of the Technology Advancement Office;
   
   
2. Authorize the Procurement Manager to execute a 3-year lease agreement with Nissan for one 2002 Nissan Altra electric vehicle, for a total amount not to exceed $12,000, including incentive; and
   
   
3. Authorize the Procurement Manager to execute a lease agreement with Ford Th!nk for one City electric demonstration vehicle, for a total amount not to exceed $6,000, including incentive.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD operates a number of advanced technology, alternative fuel vehicles (AFVs). AFVs are assigned to AQMD inspectors and utilized in the AQMD motor pool. Some AFVs are also used in the AQMD's carpool program.

The AQMD also utilizes a number of AFVs in the AFV Loan program, which demonstrates new clean-fuel vehicles to public organizations so that potential purchasers may familiarize themselves with commercially available AFVs. These programs are especially important for promoting EVs, in order to educate AQMD fleet operators and others about EV operating characteristics and charging requirements. These vehicles are also used by AQMD staff for demonstration and display at meetings, conferences and workshops.

Nissan produced 200 2002 Altra electric vehicles for the California market, and wants to place all of them by the end of this calendar year. Many of the vehicles are already committed to a few select fleets. The Altra EV seats four passengers comfortably and is the largest electric passenger vehicle available to fleets. This zero emission vehicle is propelled by a permanent magnet AC motor and stores electrical energy in a 400 volt Lithium-ion battery pack. Top speed is governed at 75 mph, with a range of about 80 - 100 miles per charge. Recharging equipment (Level 2 small paddle inductive 208-240V) is included in the lease price. The Altra comes equipped with air conditioning/heating, 4-wheel ABS, air bags, and AM/FM/CD. Nissan has not announced production plans for next year.

This fall, Ford Th!nk expected to begin placing the new 2003 City electric vehicle. While the Th!nk Neighbor EV will no longer be available after this calendar year, the fate of the new City EV is still under discussion, but it will not be available this fall. Several hundred City EV demonstration model vehicles were placed in the U.S., and Ford has designed a re-lease program to keep these demonstration vehicles on the road, even if the original lessees are unable to complete the 34-month demonstration lease. The demonstration vehicle has a top speed of 56 mph, and travels an estimated 50 miles per charge. Although not designed for extended freeway driving, it is not restricted from freeway use by Ford. The vehicle can be charged overnight on regular household current (Level 1 - 120V), plus fast charging (Level 2 conductive 208-240V) provides greater flexibility for fleet use. The lease includes conductive fast charging equipment, which is compatible with future model year 2006 electric vehicles that qualify for ZEV credit under CARB's zero emission vehicle regulation.

Proposal

Staff recommends that the Board authorize the lease of one Nissan Altra electric vehicle, and one Ford Th!nk City electric demonstration vehicle. These vehicles will join a Honda EV Plus, two Toyota RAV4 EVs, three GM EV1s, two manual Honda Insight hybrids, two Toyota Prius hybrids and three Honda Civic hybrids, as well as several CNG fueled vehicles in the AQMD AFV Loan fleet. Several electric vehicles are at or near the end of their lease and additional electric vehicles may be requested to be added to the AFV loan fleet in the future.

Benefits to AQMD

The proposed project is included in the March 2002 update of the Technology Advancement plan under Project 2002CFT-1, Assessment and Technical support of Advanced Technologies and Information Dissemination. The purpose of including AFVs, EVs and hybrid-electric vehicles in the AQMD fleet is to illustrate the AQMD's own commitment to these advanced technologies, and to showcase available OEM AFVs in order to encourage purchase of these vehicles by public and private organizations. The AQMD supports the ARB's zero-emission-vehicle requirement and strives to educate public and private organizations regarding the benefits and characteristics of AFVs. The primary objective of adding these vehicles to the AQMD's fleet is not the emissions benefits from two AFVs, but to demonstrate the viability of these vehicles to Basin fleets and to encourage the purchase of these low-emission vehicles.

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 a sole source award is made under provision d.; "other circumstances exist which are in the best interests of the AQMD." The AQMD endeavors to include as many available technologies as possible in its fleet, representing a cross-section of manufacturers. The AQMD operates AFVs from Ford, Honda, Toyota, DaimlerChrysler, and General Motors. This proposal would add the first AFV from Nissan to our fleet. As new, low emission technologies become available, other manufacturers and models will be included.

Resource Impact

Sufficient funds are available in the FY 2002-03 Budget for the lease and purchase of these vehicles. The three-year lease for one Nissan Altra EV at $299/month including charger and CA ZEV incentive will not exceed $12,000. One Ford Th!nk City demonstration EV for $199/month including charger and CA ZEV Incentive will not exceed $6,000 for up to 30 month lease. The total amount for the two vehicles will not exceed $18,000.
 

Vehicle	Total Cost
One Nissan Altra EV	$12,000
One Ford Th!nk City demonstration EV	6,000
Total	$18,000

Sufficient funds are available in the from the Clean Fuels Fund, established as a special revenue fund resulting 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 sources to support projects to increase the utilization of clean fuels, 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.

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