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STAFF REPORT TO: Finance and Audit Committee AC Transit Board of Directors

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STAFF REPORT TO: Finance and Audit Committee AC Transit Board of Directors Report No: 13-113 Meeting Date: April 24, 2013 Alameda-Contra Costa Transit District STAFF REPORT TO: Finance and Audit Committee AC Transit Board of Directors FROM: David J. Armijo, General Manager SUBJECT: FY 2013-14 Transportation Fund for Clean Air Program Funds ACTION ITEM RECOMMENDED ACTION(S): Consider ratifying a grant application submission to Alameda County Transportation Commission (ACTC} for FY 2013-14 Transportation Fund for Clean Air (TFCA) Program funds. EXECUTIVE SUMMARY: ACTC announced a call for projects for FY 2013-14 TFCA program funding for projects that result in the reduction of motor vehicle emissions within the Air District's jurisdiction in addition to meeting other program requirements. The applications were due by April 5, 2013 and the staff has submitted an application under the Clean Fuel Vehicle category for complete electrification of the gasoline hybrid bus. Due to a tight timeline, this is the first opportunity to inform the Board of this application. Should this project be approved for funding by ACTC, the staff will return for Board approval to enter into a funding agreement and execute necessary paperwork. BUDGETARY/FISCAL IMPACT: Staff has applied for up to $387,276 in FY 2013-14 TFCA funds. If awarded, approximately $97,000 in District capital funds would be required as matching funds as part of the FY 2013-14 capital budget. BACKGROUND/RATIONALE: TFCA is a local fund source of the Bay Area Air Quality Management District (Air District). As the TFCA program manager for Alameda County, the Alameda CTC is responsible for programming 40 percent of the $4 vehicle registration fee collected in Alameda County for this program. On March 6, 2013, the ACTC announced the FY 2013-14 TFCA Program call for projects. Eligible project must result in the reduction of motor vehicle emissions within the Air District's jurisdiction. Approximately $1.8 million is available in funding for the FY 2013-14 program in Alameda County, 30 percent of which is allocated for the discretionary program for transit­ related projects. The suggested minimum funding requests is $50,000. Projects approved for FY 2013-14 TFCA funding are required to start by December 31, 2014. 181 Report No. 13-113 Page 2 of 2 The staff submitted an application under the Clean Fuel Vehicle category for complete electrification of the gasoline hybrid bus. This vehicle was acquired by the District in 2008, but could not be placed in service due to lack of support as the engine design developer, ISE Corp, went out of business. The total cost of implementing this project is estimated at $484,000 including about $97,000 in District capital funds as a local match. The California Air Resources Board (CARB) Transit Fleet Rule originally required large transit agencies with fleets of over 200 buses to acquire 15 percent of all new annual urban bus purchases as zero-emission buses. In January 2010, CARB suspended the rule to allow further development of hydrogen fuel cell and electric buses; however, staff anticipates that CARB will require some percentage of new bus fleets to be zero-emission buses at some point in the future as these technologies become more commercialized. The conversion of the gasoline electric hybrid bus to a fully electric bus would allow AC Transit to evaluate the feasibility and cost effectiveness of a fully electric 30' transit bus in revenue operations while avoiding the high cost of purchasing a new electric transit bus. The fully converted electric transit bus would be placed into revenue operation to evaluate reliability and obtain comparative operating costs to our diesel and fuel cell bus fleets. The deadline to submit a grant application was April 5, 2013. Staff engaged with ACTC staff to determine if the electrification of a non-revenue service bus was eligible for this funding. This communication took much longer than anticipated, as ACTC needed further clarification from the Air District, the granting agency for the TFCA funds. Some follow-up information was provided by ACTC on March 21 ", however a final decision was not rendered even at the time of the application submission on April 4'h. This did not give staff an opportunity to bring this item to the Board in a timely manner. An approved TFCA program by ACTC with a list of funded projects is expected by July. If the District's bus electrification project is funded, the staff will return for Board approval to enter into a relevant funding agreement with ACTC. ADVANTAGES/DISADVANTAGES: Not applying for the funds would cause the district to forgo approximately $400,000 in TFCA funds for an opportunity to evaluate the performance of the electric transit bus. ALTERNATIVES ANALYSIS: There are no recommended alternative actions at this point. PRIOR RELEVANT BOARD ACTIONS/POLICIES: None 182 Report No. 13-113 Page 3 of 2 ATTACHMENTS: 1. BusRide Magazine Article -All-Electric Preview Department Head Approval: Tom Prescott, Chief Performance Officer Reviewed by: Kenneth C. Scheidig, Interim General Counsel Lewis Clinton, Chief Financial Officer Jim Pachan, Chief Operating Officer Prepared by: Kiran Bawa, Senior Analyst, Capital Planning and Grants 183 This page intentionally blank 184 SR 13-113 Attachment 1 All-Electric Preview ll ttp :/..'busride .com/20 13/04/all-e lectric- p t-eviE:VIr/ J~,pril11,2013 ad min Transit for the future under development with North American bus builders :_- ...-:::::eco-Smart 1 delivers 120 miles on a single charg~- Design Line, a manufacturer of environmentally-friendly transit buses, unveiled its first all-electric bus in 2007. The Eco-Smart 1 is completely emission free and light on maintenance. The company reports its electric bus is capable of operating up to 120 miles on a single charge under high-density, stop­ and-go, urban transit route conditions. The Eco-Smart 1 incorporates the same drivetrain and other key configurations as the hybrid-electric EcoSaver. The company notes the primary technical difference between the electric bus and the EcoSaver IV is the replacement of the auxiliary power unit (APU) with additional battery packs. Design Line says while the purchase price is approximately $600,000 to $700,000 higher than a comparably-equipped standard diesel bus, it does promise a 10 percent savings in fuel costs and certain other operating costs over the life of the vehicle. 185 In conjunction with its North American partners and the Volvo Group, Nova Bus stepped up its Electro Mobility strategy in 2011 to develop a fully electric transit bus. Unveiled in 2011, Nova Bus lays claim to being the first established bus maker to present such a prototype all-electric vehicle. The Quebec government is investing $30 million in the $73-million public-private project to develop electric buses for the international public transit market. According to a statement from Quebec Premier, the intent of funding is to become an innovation leader in the burgeoning global electric-vehicle industry.Aiong with Nova Bus, the non-profit organization, Consortium Bus Elect rique, a clutch of Quebec companies includes lithium battery firm Bathium Canada; electric vehicle component maker TM4; software firm Giro, manufacturing firm Rene Materiaux Composites; and engineering company Precicad. The goal is to put a demo vehicle in service in coming years. Pro terra specializes in the manufacture of 100 percent battery-electric zero-emission commercial 186 transit buses, with more than 80 percent of the components sourced within the United States from 33 states. Proterra, Inc. recently added San Antonio, TX to its list of service cities. The new three-bus battery-electric fleet, the Arc, went into service in February. The company says its 35-ft EcoRiderM BE35 made of lightweight composite materials is the first heavy-duty electric transit bus ever to pass Altoona bus testing conducted through the Larson Institute at Pennsylvania State University. The Federal Transit Administration mandates an analysis of all new model buses purchased with federal funds to ensure reliability and in-service performance. The Altoona test simulates the use and strain a bus will undergo during its 12-yeardurable life cycle. Proterra says the 54-72 kWh lithium-titanate battery packs recharge in less than 10 minutes. New Flyer Industries and its consortium partners received CAD $3.4 million in funding through Sustainable Development Technology Canada (SDTC) in 2012 to further enhance rapid-charge battery-electric bus propulsion technology. The consortium partners contributing to this innovative vehicle include, the Government of Manitoba, Mitsubishi Heavy Industries, Ltd. (MHI), Manitoba Hydro, Red River College and Winnipeg Transit. The SDTC project involves the development and implementation of four rapid-charge battery­ electric transit buses and a high capacity charging station. Based on its highly successful40-foot Xcelsior heavy-duty transit bus, New Flyer has modified battery-electric prototype to integrate advanced lithium ion batteries from MHI that charge from the utility electrical grid as opposed to electrical power from a conventional diesel engine. These buses are targeted for delivery to Winnipeg Transit in 4Q 2013 for revenue service over a four-year period. This project will examine the integration of electric vehicle technology into transit service and evaluate key operational performance characteristics including the charging system, battery capacity, component life, reliability and the assessment of both operational and life cycle cost savings. BR Posted by admin on Apr 1 2013. Filed under. You can follow any responses to this entry through the RSS 2.0. You can leave a response ortrackback to this entry 187 Ecoliners seamlessly integrate for full service h tlp J.·b u srid e .co m/:W13i0411"1 031.' April 11,2013 ad min Foothill Transit sees great success from its zero-emission buses By Richard Tackett Three Proterra 35-foot EcoRide BE35s, dubbed the Ecoliners by Foothill Transit, West Covina, CA, have been running a busy route in the San Gabriel and Pomona Valleys since September 2010.
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