59
Regulatory Proposal Workshop December 15, 2017 Sacramento, California

Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Embed Size (px)

Citation preview

Page 1: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Regulatory Proposal Workshop

December 15, 2017

Sacramento, California

Page 2: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Meeting ParticipationDiscussion document and meeting materials at

https://arb.ca.gov/msprog/ict/meeting.htm

Workshop is webcast and can be watched live at https://video.calepa.ca.gov/

Workshop is recorded and will be posted on program website

Questions during the workshop to be sent to [email protected]

Questions and comments after the workshop can be sent to Ms. Shirin

Barfjani at [email protected] by January 12, 2018

2

Page 3: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Agenda OutlineBackground

Market status

Funding opportunities

Rule proposal

Zero emission buses

Innovative zero emission mobility option

Performance based concept

Low NOx engines and renewable fuels

Open discussion

3

Page 4: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

California Long-term GoalsCalifornia needs significant NOx and GHG reductions

Federal health-based ambient air quality standards (key milestones in 2023 and 2031)

40 percent reduction in GHG emissions from 1990 levels by 2030

80 percent reduction in GHG emissions from 1990 levels by 2050

50 percent petroleum reduction target by 2030

Continued reductions in criteria pollutants and toxic air contaminants to protect public health

Meeting these goals requires major emission and energy use reductions from

all sectors including industrial, residential, electricity, and transportation

Maximize use of zero emissions technologies where feasible

4

Page 5: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Mobile Source Strategies

Advanced

Clean

Cars

Low Carbon

Fuel

Standard

50% Ren

Portfolio

Standard

2010 HD

Engine

Standard

Sustainable

Communities

SB 375

In-Use HD

Engine

Retrofits

Cap and

Trade

SB 32

HVIP

Funding

HD

On-Board

Diagnostics

Car

Scrap

Vehicle

Efficiency

Phase 2 GHG

Optional

Low NOx

Engine Stds

Low Carbon

Fuel

Standard

Update

Transportation

Electrification

SB 350

Page 6: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

California Transit AgenciesLong-term partners in introducing new technologies to address air quality

Led introduction of cleaner engines, alternative fuels, exhaust retrofits

Are leading adoption of low NOx engines and zero emission technologies

Addressing barriers, expanding education, and outreach

Provide safe and reliable public transit services

Reduce passenger car use, single occupancy trips, and congestion

Benefit local communities and serve transit-dependent riders

More than 200 public transit agencies operating about 14,000 transit buses

Wide range of fleet sizes, modes, terrain, technology type, weather, service areas, etc.

6

Page 7: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Program HistoryExisting Transit Fleet Rule includes 15% ZEB purchase requirement

Transit fleets first to introduce new technologies by retrofitting existing engines

and switching to alternative fuels

Several agencies worked together to demonstrate ZEBs

In 2009 Board withheld the ZEB purchase requirement (Resolution 09-49)

In 2015 we concluded ZEB technologies were in early commercialization

Began discussion* on how to partner with transit agencies to achieve a zero

emission future by 2040

A lot has changed in the last couple of years

7

* Meeting recording and summaries, are available at https://arb.ca.gov/msprog/ict/meeting.htm

Page 8: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

8

Page 9: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Recent ZEB Market ChangesDozens of transit fleets purchasing ZEBs

Multiple ZEB models available from several manufacturers

Several BEBs exceeding 200 and 300 miles per charge

Proterra commercial BEB operated 1,100 miles on test track (single charge)

A fuel cell bus power plant exceeds 25,000 hours of operation

Met U.S. Department of Energy’s ultimate performance target

9

Page 10: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Battery and Fuel Cell Electric Buses in California

10

Page 11: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Leading the Way to Zero Emissions

7 transit agencies committed to

making full transition to ZEBs

Represent about 25 percent of all

buses in California

11

Agency Total

Buses

All ZEB

Target

Antelope Valley 77 2018

Porterville Transit 15 2018*

San Joaquin RTD 111 2025

Foothill Transit 327 2030

LA DOT 326 2030

LA Metro 2,457 2030

Santa Cruz Metro 98 2040

Total 3,411

Page 12: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Multiple Zero Emission Bus Types and Models

12

Standard Bus

8 OEM’s and 22 models

50-284 miles per charge

80-660 kWh battery

Articulated Bus

3 OEM’s and 3 models

185-284 miles per charge

400-885 kWh battery

Coach Bus

3 OEM’s and 5 models

124-200 miles per charge

135-394 kWh battery

Double-Decker Bus

GreenPower

240 miles per charge

478 kWh battery

Cutaway Bus

2 OEM and 2 Models

100 miles per charge

105 kWh battery

Articulated Bus

2 OEM’s and 2 models

Standard Bus

2 OEM’s and 2 models

Fuel Cell ElectricBattery Electric

Page 13: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Battery, Hayward

BEB, Porterville

BEB, Livermore

BEB, BET, andBattery, Lancaster

BEB, Ontario

BEB, Downey

California is Home to Zero Emissions Bus Manufacturing

Bus repowers, Riverside

EDS, Foster City

ZEB Manufacturers Outside of CA

St. Cloud, MN

Plattsburgh, NY

Wilder, KY

FCEB, Riverside

AbbreviationsBattery Electric Bus (BEB)Fuel Cell Electric Bus (FCEB)Battery Electric Truck (BET)Electric Drivetrain Systems (EDS)

Page 14: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

ZEB Market Continues to Expand

Cummins to produce battery electric drivetrains 2019 for transit buses and 2020 for trucks

GILLIG partnering with Cummins for zero-emissions transit buses

MCI to have commercial battery electric coach in 2020

Van Hool to have commercial battery electric coach in 2019 To use Proterra battery electric drive system

Ford added electric drivetrain option to their qualified vehicle modifier program Motiv supplying battery electric drive system for the Ford E-450 and F-59 chassis

Suitable for cutaway shuttles or trucks

Several ZE truck and bus demonstrations underway Battery electric and fuel cell electric

14

Page 15: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Update on Charging StandardizationSAE International

Medium and heavy duty battery electric vehicle charging

Plug-in (conductive) charging J3068 in finalization process (early 2018)

Overhead (conductive) charging J3105 in progress (slipped to 2018)

Wireless (inductive) charging J2954 in progress (on schedule for 2019)

All expected to be finalized by 2020

15

Page 16: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

LCFS Program Staff ProposalReduce carbon intensity through 2030

Significant expansion of renewable fuel market

Should remove questions about program longevity

Increase battery electric EER to 5.0 for trucks and buses

Recognizes higher efficiency in transit, short haul, and vocational applications

Would increase credits by 20% for a transit bus (eg. increase from $8,000 to $9,600 per

year at $100 per credit)

Clarify how hydrogen station operator can receive credits

Subject to change

Board consideration early 2018

16Preliminary draft LCFS proposal at https://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/092217_draftregtext.pdf

Page 17: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Transportation Electrification SB350 California Public Utility Commission (CPUC)

Accelerate widespread transportation electrification

PG&E, SCE, and SDG&E submitted proposals to invest $1 billion in

transportation electrification over an approximate five year period

$750 million for battery electric truck and bus infrastructure, rates, and other

Potential to offset most costs for electrical service upgrades and chargers

CPUC proposed approval of 15 projects with combined budgets of $42 million

Vote expected at January 18, 2018 meeting

Decision on the standard review projects expected in March/April 2018

Three other investor owned utilities submitted proposals in June 2017

17CPUC SB350 transportation electrification information http://www.cpuc.ca.gov/sb350te/

Page 18: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

18

Page 19: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

CARB Funding Plan Includes a three-year strategy for heavy-duty vehicle investments to guide the

funding decisions

Low Carbon Transportation Program funded with Cap-and-Trade auction proceeds

Air Quality Improvement Program

One-time Volkswagen settlement funding for the zero emission vehicle aspects of vehicle

replacement programs

One-time funding for the Zero/Near Zero Emission Warehouse Program

Approved by Board December 14, 2017

19Funding plan workshop https://www.arb.ca.gov/msprog/aqip/fundplan/1718_draft_funding_plan_workshop_100417.pdf

Page 20: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Approved Funding Plan - VouchersHybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)

and Low NOx Engine Incentives

$188 million for FY 17-18

Increased voucher amounts

$35 million set aside for ZEBs

Rest is first come first served for

ZE trucks, ZEBs, low-NOx engines, other

Infrastructure voucher enhancement

Up to $30,000 per charger for BEB

Up to $100,000 per FCEB with purchase of 5 or more

20

Category Base Amount*

Low NOx Engine (8.9 Liter) $10,000

Zero Emission Bus (20 ft – 24 ft) $80,000

Zero Emission Bus (25 ft – 29 ft) $90,000

Zero Emission Bus (30 ft – 39 ft) $120,000

Battery Electric Bus (40 ft – 59 ft) $150,000

Battery Electric Bus (60 ft) $175,000

Double Decker Bus (40 ft) $175,000

Fuel Cell Electric Bus (≥ 40 ft)** $300,000* Up to $15,000 more for use in a disadvantaged community

Proposed FY 2017-18 Funding Plan https://www.arb.ca.gov/msprog/aqip/fundplan/proposed_1718_funding_plan_final.pdf

Page 21: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Vouchers Improve Payback

Category (in $2016) CNG Diesel

Bus (with charger) $235,000 $285,000

Voucher -$150,000 -$150,000

Net Capital Cost $85,000 $135,000

Maintenance -$10,000 -$7,600

Midlife -$2,500 -$2,500

Fuel -$5,000 -$18,400

LCFS (@ $100/MT) -$7,500 -$8,600

Net O&M Costs/year -$24,000 -$37,000

Simple Bus Payback (Years) < 4 < 4

Vouchers can offset most upfront costs

Incremental costs will vary by fleet,

location, and other variables

Infrastructure upgrades depend on

charging/fueling strategy and site

conditions

Pending decisions

Funding, LCFS, TE proposals

Most decisions expected early 2018

Continue to refine cost estimates

Key Assumptions: Buses purchased in 2018; 14-year lifetime; 40,000 miles

per year; $35,000 midlife cost for CNG and diesel buses; charger included in

BEB capital cost; excludes service upgrades and charger pedestal installation

cost. Electrical service upgrades could vary from $20,000 to $75,000.

Example: Incremental Costs for Single BEB Purchase

Without Electric Service Upgrades vs Conventional

Page 22: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Volkswagen Environmental Mitigation TrustProvides about $423 million to California

Mitigate the lifetime excess NOx emissions

CARB will be the lead agency to administer

First public workshop in October 2017

Developing Beneficiary Mitigation Plan on how the State will spend its allocation

First Partial Consent Decree, Appendix D

Transit agencies are potentially eligible for bus replacements

Continuing public process with Board consideration planned for Spring 2018

22More information at https://www.arb.ca.gov/msprog/vw_info/vsi/vw-mititrust/vw-mititrust.htm

Page 23: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Funding for Clean Mobility Options

for Disadvantaged CommunitiesEncourages use of advanced technology vehicles in mobility programs

Car sharing, vanpools, bicycle sharing, and other mobility options

Zero emission vehicles, plug-in hybrid vehicles, and bicycle

$17 million for FY 2017-18

Can be used by transit agencies to begin new program

23More information at https://www.arb.ca.gov/msprog/aqip/ldv_pilots.htm

Page 24: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Other Funding Opportunities AB 617

To monitor community air for toxic and criteria pollutants and develop strategies to reduce them

Focuses on mobile sources and infrastructure. DAC has priority

$250 million distributed through local air districts pursuant to Moyer Program

Transit and Intercity Rail Capital Program (TIRCP) Operating and capital assistance for transits to reduce GHG and improve mobility. DAC has priority

Five percent of the annual auction proceeds in the GGRF

Low Carbon Transit Operations Program (LCTOP) To modernize intercity, commuter, urban rail, bus and ferry transit systems

Solutions for Congested Corridors Program (SB 1) Priority projects to improve traffic flow and mobility on congested corridors and improve air quality

Appropriates $250 million annually to Caltrans and regional agencies

Local and federal funding programs

24

AB 617 https://ww2.arb.ca.gov/our-work/programs/community-air-protection-program-ab617

TIRCP http://www.dot.ca.gov/drmt/sptircp.html

LCTOP http://www.dot.ca.gov/drmt/splctop.html

SB1 http://catc.ca.gov/programs/SB1.html

Page 25: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

25

Page 26: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

General Considerations of Staff ProposalAchieve zero emission transit system by 2040

Partner with transit agencies on long term strategy

Encourage early action with opportunities for funding

Maintain consistency with existing purchase patterns

Complement existing programs

Avoid adverse impact on transit services

Provide environmental benefits, especially in disadvantaged communities

Ensure emissions reductions are real and quantifiable, and enforceable

Ensure requirements are technologically and financially feasible

26

Page 27: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Proposed Rule ElementsZero emission buses

Innovative mobility credits

Joint regional compliance

Low NOx engines

Renewable fuels

Periodic Board updates beginning 2022

Performance based discussion

27

Page 28: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Overview of Proposed Rule Concept

January 1, 2020 Large transit agencies with (>=100 buses)

25% of bus purchases to be ZEBs

Purchase renewable fuels when diesel or natural gas contracts are renewed

Report data to evaluate performance-based approach

All transit agencies Bus purchases to include low NOx engines for more polluted regions (if available)

Credit for new innovative zero emission mobility programs

January 1, 2023 50% of bus purchases to be ZEBs for transit agencies with 30 or more buses

January 1, 2026 75% of bus purchases to be ZEBs for all transit agencies

January 1, 2029 All bus purchases would need to be ZEB

28

Page 29: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

ApplicabilityRule applies to all public transit agencies that own or operate buses

With GVWR >14,000 lbs

Include standard transit buses, articulated buses, commuter coaches, double-deckers,

cutaways, trolley buses, and others

Mobility options and performance based options to include lighter vehicles

Bus fleet size determined by number of buses in active fleet as of 2019

Large transits have 100 or more buses

Medium transits have 30 to 99 buses

Small transits have fewer than 30 transit buses

29

Page 30: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

30

Page 31: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

ZEB Phase-In ScheduleApplies at time of bus purchase (no accelerated replacement)

Deferred compliance for smaller agencies

Early purchases count towards future requirements

31

Starting

January 1

Percent of Bus Purchases* Fleet Size as of 2019

2020 25% >100 buses

2023 50% >30 buses

2026 75% All fleets

2029 100% All fleets

*Trolley buses would not be counted towards ZEB purchase requirements except when expanding the

existing fleet from a 2015 baseline

Page 32: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Projected ZEBs Due to Proposal

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

Perc

en

t Z

EB

s

Year

Page 33: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Early ZEB Purchases Eligible for FundingEarly ZEB purchases count towards future obligations

Provides flexibility in how ZEBs are deployed and infrastructure is utilized

Ensures consistency with incentive programs that require early action

One ZEB credit for each early purchase

Made before initial compliance date, or

If exceeds the minimum ZEB requirement in year of purchase

Credits are bankable for future use

Provides flexibility in making two separate bids in the same year

Purchase more ZEBs in first contract

Can avoid ZEB purchases in next contract (same year or next)

33

Page 34: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

BEB Phase-In ExampleLarge fleet of 140 buses

Normal bus purchases 30 buses every 3 years

34

Year Normal Bus

Purchases

ZEB % of

Purchases

Minimum ZEBs

(no funding)

1st ZEB

Purchase Early

1st and 2nd ZEB

Purchase Early

1st, 2nd & 3rd

Purchase Early

2018 -- 0% 0 0 0 0

2019 30 0% 0 8 8 8

2022 30 25% 8 0 15 15

2025 30 50% 15 15 0 23

2028 30 75% 23 23 23 0

2031 30 100% 30 30 30 30

Total ZEBs Purchased 76 76 76 76

Early purchase remain eligible for most funding programs

Page 35: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

BEB Phase-In ExampleLarge fleet of 140 buses

Normal bus purchases 30 buses every 3 years

35

Year Normal Bus

Purchases

ZEB % of

Purchases

Minimum ZEBs

(no funding)

1st ZEB

Purchase Early

1st and 2nd ZEB

Purchase Early

1st, 2nd & 3rd

Purchase Early

2018 -- 0% 0 0 0 0

2019 30 0% 0 8 8 8

2022 30 25% 8 0 15 15

2025 30 50% 15 15 0 23

2028 30 75% 23 23 23 0

2031 30 100% 30 30 30 30

Total ZEBs Purchased 76 76 76 76

Early purchase remain eligible for most funding programs

Page 36: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

BEB Phase-In ExampleLarge fleet of 140 buses

Normal bus purchases 30 buses every 3 years

36

Year Normal Bus

Purchases

ZEB % of

Purchases

Minimum ZEBs

(no funding)

1st ZEB

Purchase Early

1st and 2nd ZEB

Purchase Early

1st, 2nd & 3rd

Purchase Early

2018 -- 0% 0 0 0 0

2019 30 0% 0 8 8 8

2022 30 25% 8 0 15 15

2025 30 50% 15 15 0 23

2028 30 75% 23 23 23 0

2031 30 100% 30 30 30 30

Total ZEBs Purchased 76 76 76 76

Early purchase remain eligible for most funding programs

Page 37: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

BEB Phase-In ExampleLarge fleet of 140 buses

Normal bus purchases 30 buses every 3 years

37

Year Normal Bus

Purchases

ZEB % of

Purchases

Minimum ZEBs

(no funding)

1st ZEB

Purchase Early

1st and 2nd ZEB

Purchase Early

1st, 2nd & 3rd

Purchase Early

2018 -- 0% 0 0 0 0

2019 30 0% 0 8 8 8

2022 30 25% 8 0 15 15

2025 30 50% 15 15 0 23

2028 30 75% 23 23 23 0

2031 30 100% 30 30 30 30

Total ZEBs Purchased 76 76 76 76

Early purchase remain eligible for most funding programs

Page 38: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Bonus Credits for Early Action Bonus ZEB credits for pioneers with ZEBs already in service

Took more risks in deploying early technologies

Provided solutions for addressing barriers

Benefits other transits and broader heavy duty zero emission vehicle market

Temporary extended bonus for FCEBs

Bonus credits are bankable for future use

38

Technology Placed in Service Bonus ZEB Credit

FCEB January 1, 2018 to January 1, 2023 +1

FCEB Before January 1, 2018 +2

BEB Before January 1, 2018 +1

Page 39: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

ZEB Deployment Provisions GoalsWork with individual fleets to avoid unintended consequences

Likely uncommon situations

Beyond transit agency control

Safeguard infrastructure investments and expansion

Can address case by case situations

Transit fleet provides information to Executive Officer

Receives one year extension if basic criteria met

Help identify barriers for future updates

39

Page 40: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Proposed ZEB Deployment Provisions Utility unable to expand needed service in timely manner

Unforeseeable delays in installing infrastructure Hydrogen station installation or expansion

Charging station installation or expansion

ZEB type has not completed Altoona testing by time contract issued Cutaway ZEBs

Any voluntary purchases would still count towards ZEB purchases

Cannot avoid conflict with safety or local permitting requirements

Discussion topics BEB range suitable for initial deployments, continues to improve

Space constraints unlikely for small deployments (overhead charging)

Other

40

Page 41: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Joint ZEB Compliance OptionMultiple transits within a region may implement a joint ZEB deployment

Opportunity to optimize the bus and infrastructure investments

Criteria for joint compliance

Jointly comply with sum of numbers of ZEBs required by each agency individually

Jointly funded through a common MPO or transportation authority

Operate ZEBs at a transit agency affected by the ZEB purchase requirement

Show how ZEB deployment prioritizes benefits in a disadvantaged community

Place the buses in revenue service for the FTA minimum useful life

Provide appropriate maintenance and storage facilities for the applicable technology

Train bus operators and maintenance personnel from each participating transit agency

41

Page 42: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Innovative Zero Emission Mobility Option

42

Page 43: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Innovative Zero Emission Mobility Option Includes ZE transportation services provided by transit agencies

Micro-transit, autonomous shuttles, on-demand van or car transportation

Does not include larger buses, nor fixed-guide way transportation

Leads to a broader zero emission future

Innovative mobility program could earn ZEB purchase credits

350,000 passenger miles per year deemed equivalent to one ZEB purchase

Transit agency to work with Executive Officer

Define project identify scope and tracking methodology

Reporting and record keeping

Re-evaluate progress at initial board update

43

Page 44: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Low NOx Engines and Renewable Fuels

44

44

Page 45: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Renewable Fuels in CaliforniaAvailable due to LCFS and Federal Renewable Fuel Standard programs

Renewable natural gas (RNG)

Commercially available with equal or lower price than fossil natural gas

Transit fleets are significant part of total transportation CNG market

Most RNG is currently produced outside of California

Renewable diesel (RD)

Commercially available with equal or lower price as diesel fuel

Is a drop-in fuel and can be blended with general diesel supply

RD providers contracting with large transits

Smaller agencies face challenges due to small volume and rural locations

45

Page 46: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Proposed Renewable Fuel Purchases Purchase renewable fuels after January 1, 2020

When diesel and natural gas contracts are renewed

Applies to fleets with 100 or more buses (smaller fleets exempt)

Results in little or no costs to transit fleets

Supports existing LCFS program

Contributes to State efforts to increase in-state production of renewable fuels

GHG emissions benefits already part of LCFS program

Cannot be double counted

46

Page 47: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Low NOx Engine AvailabilityCurrently available for most CNG buses and propane shuttle buses

Low NOx engine for CNG buses became commercially available in 2016

Low NOx engine for diesel and gasoline buses is not available yet

CARB is planning on a setting new low NOx engine standard

Board action expected in 2019

Could apply to the 2023 engine year for all on-road heavy-duty engines

47

Page 48: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Proposed Low NOx Engine PurchasesLow NOx engines when new bus

purchases made

All transit agencies except if operating in NOx

Exempt Areas

Begins January 1, 2020 or 2 years after

commercially available for bus/fuel type

Does not apply if not available for bus

Not required for mid-life engine rebuilds

Early low NOx engine purchases count

towards future bus purchases

Fleet can remain eligible for funding if continuing

to purchase low NOx engines

48

NOx Exempt Areas

(shaded green)

Page 49: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

49

Page 50: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Performance Based Option DiscussionGoal to account for wide range of actions to reduce NOx and GHG

Switching to ZEBs, cleaner engines, eco driving, enhanced mobility, right sizing vehicles,

improving vehicle efficiency, increasing ridership….

Avoid double counting with existing measures (LCFS, engine standards, Phase 2 GHG…)

Intent to be responsive to transit fleet requests

Evaluated strategies for all modes of passenger transportation

Light rail, buses, trolleys, ferries, vans, bicycle, gondola, and other

Key metrics evaluated

Emissions per passenger mile

Emission per seat mile

Zero emission passenger miles

50

Page 51: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Performance Based Key Issues Performance based approach restricts funding availability

Must show early compliance with future goal

Metrics must be based on completed actions Data collection and reporting lag time

Equity challenges Low NOx engines available for CNG bus fleets, but not for diesel bus fleets

Potentially infeasible for diesel bus fleet

Some fleets are “dirtier” and need to do more to meet a common goal

Challenges with separating new actions from existing requirements Engine emissions standards, vehicle efficiency requirements, use of renewable fuels

Annual variability in fuel use, mileage and ridership May not be suitable for adequately measuring small changes

Potential to resolve existing anomalies in NTD data with data directly from fleet

May be suitable for meeting longer term goals when larger reductions needed

51

Page 52: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Performance Based OptionContinue development of concept

Intent to provide option for fleets starting 2023

Avoids near term conflicts with funding eligibility

Allows for further analysis of fleet data

Mandatory reporting for large transit agencies

Large transits to report information for all modes starting 2020 Report annual data back to 2015 (proposed baseline year)

Publicly available NTD data not sufficient

Data to be used to: Evaluate data quality

Assess how performance based option would affect fleets

Compare with results of any zero emission innovative mobility options

52

Page 53: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Reporting for Performance Based Assessment Vehicle information:

VIN and fleet identification number

Transportation mode and type of service

Fuel type and fuel consumption per vehicle type

Vehicle type and length category

Vehicle model year

Vehicle odometer reading

Engine year and engine family name

Annual totals by transportation mode: Passenger counts per revenue mile

Sampling and data collection method

Total revenue miles and deadhead miles

Passenger miles traveled

Average trip length

For linked trips. Number of linked trips (a trip contains at least one transfer from one vehicle or mode to the next)

Number of transfers per trip

Average length of linked trip

53

Page 54: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

General Reporting Requirements Reporting to ensure compliance are met and credits are tracked appropriately

Annual reporting starts January 1, 2020 for all transits

Basic reporting includes Transit agency name and information

VIN and associated fleet vehicle number

Engine family name

Propulsion technology and fuel type

Traction battery capacity (if applicable)

Vehicle make, model year, and model

Horsepower

Odometer reading and reading date

Purchase contract number

Date of purchase contract

Date placed in service

54

Page 55: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Informational Update in 2022ZEB market status and technology readiness for large deployments

Evaluate costs and fleet experiences

Assess transit fleet data quality and effect of potential metrics

Should scope of the regulation be expanded to smaller (non-bus) modes

Status of innovative mobility option and mobility programs

Evaluate the feasibility of performance based approach

Other?

55

Page 56: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Environmental AnalysisEnvironmental Analysis (EA) being prepared analyzing potentially significant

adverse impacts caused by reasonably foreseeable actions.

Meets requirements of CARB’s certified program under the California

Environmental Quality Act (CEQA).

The CEQA Environmental Checklist (CEQA Guidelines Appendix G) is used to

identify and evaluate potential indirect impacts.

The EA will be an appendix to the Staff Report.

56

Page 57: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

Environmental Analysis to be PreparedThe EA will include:

Description of reasonably foreseeable actions taken in response to amendments.

Programmatic level analysis of potential adverse impacts caused by reasonably

foreseeable actions

Beneficial impacts

Feasible mitigation measures to reduce/avoid significant impacts

Alternatives analysis

Input invited at this early stage on appropriate scope and content of the EA.

Draft EA will be released for 45 day public comment period.

57

Page 58: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

TimelineTransit agency subcommittee workgroup meeting

Early 2018 Southern California

Statewide workshops on draft regulation

Spring 2018 (Sacramento, Southern California)

Board hearing to consider the regulation

June 2018

58

Page 59: Regulatory Proposal Workshop December 15, 2017 Sacramento ... · Agenda Outline Background Market status Funding opportunities Rule proposal Zero emission buses Innovative zero emission

59