Natasha Robinson Office for Low Emission Vehicles Department for Transport Zone 1/31 Great Minster House 33 Horseferry Road Sylvia Broadley London Birmingham City Council SW1P 4DR 1 Lancaster Circus Queensway Direct Line: 020 7944 4255 PO Box 14439 e-mail: [email protected] Birmingham, B2 2JE 22 March 2017
OLEV ULEV Taxi Infrastructure Competition section 31 Grant award for Financial Year 2016/17-2019/20
Dear Sylvia
I am pleased to confirm the detailed terms and conditions on which the Secretary of State for Transport (“the Secretary of State”) is prepared to award grant under section 31 of the Local Government Act 2003 (s31) to Birmingham City Council (“the Authority”) for delivery of your ULEV Taxi Infrastructure proposals (which form Annex 3 of this letter) with the Office for Low Emission Vehicles (OLEV) for the financial year 2016/17 and beyond. The attached grant award is made with the approval of HM Treasury.
The information contained in this letter, annexes and the attached documents should be brought to the attention of all relevant staff in the Authority. Your Chief Finance Officer is required to sign and return the enclosed acknowledgement slip confirming that they have understood and agreed the terms and conditions by which the grant operates.
The Secretary of State’s funding contribution to Birmingham City Council of the ULEV Taxi Infrastructure proposals grant for 2016/17 – 2019/20 will be paid as capital grant as set out in Annex 2A and the terms of the capital grant are set out in Annex 2B. Acceptance by the Authority of the award is acceptance of those terms.
The Secretary of State will not meet any grant claims that would result in the agreed annual grant allocation being exceeded.
The grant payments, to the total amount shown in Annex 2A, will be made over the period 2016/17/2019/20 following on going delivery of your proposals at Annex 3.
With regards to assurance, local authorities are public authorities and, by definition, are expected to have robust accounting, monitoring and transparency arrangements in place to allow for appropriate accountability to their communities. The Secretary of State has concluded that these arrangements are largely sufficient to allow for proportionate scrutiny of the ULEV Taxi Infrastructure scheme.
With regards to publicity, where it is intended that funding will be referenced, OLEV is keen for the Department’s financial contribution to your project to be publicised. If you do decide to publicise the Department’s contribution, please consult the Department on its brand guidelines.
As with previous advice your proposals under the ULEV Taxi Infrastructure Scheme, which form part of this agreement, may be subject to state aid requirements. It is the responsibility of local authorities to satisfy themselves that they are state aid compliant when using the funding and in accepting this Grant Determination Letter you are confirming that the state aid analysis for your proposals accurately sets out all state aid risks associated with your proposals. You should therefore ensure that your project teams are versed on state aid law, as they are best placed to provide support on the operational matters within the Authority. Guidance on State Aid is available from: www.gov.uk/state- aid.
The Secretary of State may require repayment of any of the grant already paid, together with interest from the date of payment, if the Secretary of State is required to do so as a result of a decision by the European Commission or as a result of any obligation arising under European Union law.
In the event that your authority is unable to deliver your proposals, and with the agreement of the Secretary of State, grant monies may be returned to the Secretary of State in the manner and at such time agreed by the parties. If there are any material changes to your proposals you should inform the Secretary of State immediately.
The authority will be expected to support monitoring and evaluation requirements where specified by the Secretary of State.
Should you wish to discuss the contents of this letter, please contact Steve Ives: 0207 944 4255; e-mail: [email protected].
Yours sincerely
Natasha Robinson (Head, OLEV)
Annex 1: Documentation to be provided by the Grant Recipient before the Grant will be released
The Grant Recipient is requested to provide the following documents to enable the Secretary of State to release the Grant:
a) a copy of the authority’s ULEV Taxi Infrastructure final proposals as agreed with OLEV (attached at Annex 3);
b) a signed copy of the Acknowledge slip below;
c) details of a bank account of the Grant Recipient into which the Grant may be paid; and
d) the name and contact details of personnel authorised by the Grant Recipient to deal with the Secretary of State on matters connected to the Grant on the Recipient’s behalf.
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ACKNOWLEDGMENT SLIP
OLEV ULEV Taxi Infrastructure proposals (Grant No: 31/2970)
I ACKNOWLEDGE RECEIPT OF THE S31 GRANT LETTER FOR BIRMINGHAM CITY COUNCIL FOR 2016/7-2019/20.
I ACCEPT THE GRANT OFFER FOR AND ON BEHALF OF BIRMINGHAM CITY COUNCIL SUBJECT TO THE TERMS AND CONDITIONS SET OUT IN THIS LETTER AND THE ANNEXES TO THIS LETTER. I CONFIRM THAT I AM LAWFULLY AUTHORISED TO DO SO.
SIGNED (CHIEF FINANCE OFFICER)…………………………………………………….
PLEASE PRINT NAME……………………………………………………………..
DATE………………………………………………………………………………….
Please return to the Office for Low Emission Vehicles (OLEV) Department for Transport, c/o Steve Ives, City Scheme Manager, OLEV, 1/31, Great Minster House, 33 Horseferry Road, London SW1P 4DR.
ANNEX 2: GRANT LETTER 2016/17-2019/20: RULES AND INSTRUCTIONS FOR CLAIMING GRANT
Grant Determination for the ULEV Taxi Infrastructure Grant No: 31/2970 (Capital))
The Secretary of State for Transport (“the Secretary of State”), in exercise of the powers conferred on him by section 31 of the Local Government Act 2003, hereby makes the following determination:
Citation 1. This determination may be cited as the ULEV Taxi Infrastructure Scheme Grant Determination No 31/2970.
Purpose of the grant 2. The purpose of the grant is to provide support to receiving authorities in England towards expenditure lawfully incurred or accrued by them as capital costs for the scheme specified in Annex 2A.
3. In making this grant the Secretary of State does not intend to effect a private law contractual relationship with the receiving authorities.
Determination 4. The Secretary of State determines:
(a) that the authority in Annex 2A is an authority to which grant under this determination is to be paid; and
(b) that the maximum amount of grant payable to the authority in respect of 2016-17 and subsequent years shall be the amount shown against the name of the authority in Annex 2A.
Treasury consent 5. Before making this determination in relation to local authorities in England, the Secretary of State obtained the consent of the Treasury.
Grant conditions 6. Pursuant to section 31(3) and 31(4) of the Local Government Act 2003, the Secretary of State determines that the grant will be paid subject to the conditions in Annex 2B.
Signed by
Natasha Robinson (Head of OLEV) on authority of the Secretary of State 22 March 2017 Annex 2A – Authority to which grant is to be paid and maximum amount of grant to be paid
Local Authority 2016/17 2017/18 2018/19 2019/20 Total Capital Grant Allocation BIRMINGHAM CITY £2,000,000 £929,000 0 0 £2,929,000 COUNCIL
Annex 2B – Grant conditions
Grant Conditions
1. Capital grant paid to local authorities under this determination may be used only for the purposes for which a capital receipt may be used in accordance with regulations made under section 11 of the Local Government Act 2003.
2. The Chief Executive and Chief Internal Auditor of each recipient authority is required to sign and return to the section 31 Grant Claims Manager (ULEV Taxi Infrastructure Scheme) in the Department for Transport (OLEV) a declaration, to be received no later than six months after the physical completion of the relevant scheme(s), in the following terms:
“To the best of our knowledge and belief, and having carried out appropriate investigations and checks, in our opinion, in all significant respects, the conditions attached to the ULEV Taxi Infrastructure Scheme Project Grant Determination 2016-17 No: 31/2970 have been complied with.”
3. If an authority fails to comply with any of the conditions and requirements of paragraphs 1 and 2, the Secretary of State may:
a) reduce, suspend or withhold grant; or b) by notification in writing to the authority, require the repayment of the whole or any part of the grant.
4. Any sum notified by the Secretary of State under paragraph 3 (b) shall immediately become repayable to the Secretary of State.
5. The following costs are not Eligible Expenditure Payments: that support activity intended to influence or attempt to influence Parliament, Government or political parties, or attempting to influence the awarding or renewal of contracts and grants, or attempting to influence legislative or regulatory action.
Annex 3
ULEV Taxi proposals agreed with OLEV
OLEV ULEV Taxi Scheme Bid application
Guidance on the application process is provided separately.
This application form is split into the following sections –
SECTION 1 – Applicant information SECTION 2 – Funding SECTION 3 – Regulatory measures SECTION 4 – Infrastructure SECTION 5 – Stakeholders SECTION 6 – Monitoring and Innovation SECTION 7 – Air Quality
SECTION 1: Applicant Information
1.1 Local Authority: Birmingham City Council
1.2 Lead Contact email: [email protected]
1.3 Lead Contact phone: 07730 282091
1.4 For joint bids: N/A
1.5 Geographical area: Birmingham has a population of 1.1 million making it the UK’s second most populous city. As a major city in the West Midlands built up area, the Birmingham metropolitan area is the second most populated area in the UK with a population of 3.8 million.
Birmingham City Council as a unitary authority has full highway and transport powers and is a busy transport hub served by the M5, M6, M40 and M42 motorways. Birmingham New Street is the UK’s busiest railway station outside London and has direct services to many other UK cities. Local public transport in Birmingham is coordinated through Transport for West Midlands and includes the busiest urban rail and urban bus systems outside of London. Birmingham Airport located 6 miles east of the city centre and is the seventh busiest UK airport by passenger numbers.
1.6 Headline description:
BCC is focussed on improving air quality and to be compliant as soon as possible before 2020 and look to be ULEV/zero emission city by 2030. To achieve this ambition, the Hackney Cab and PHV fleet will be a major contributor to this achievement.
BCC is planning 2 key ‘super’ charge point hubs with a minimum of 6 charge points each - Birmingham New St Station’s Ellis St Car Park as the main rank, pick up and drop off point in the city centre, and Tyseley Energy Park off the A45, as the main route to Birmingham Airport and the NEC and just 2.miles from the city centre. Both will provide green renewable energy to ensure the maximum environmental impact of ULEV/ZEC taxis. The city centre will be further supported through 7 other sites providing fast/rapid charge point facilities.
Every arterial road to the outer city area, where it links with the A4040 ring road, will benefit from a comprehensive infrastructure of charge point sites to support PHV operators and drivers. The total number of city centre and outer city charge points will be 197- a mixture of fast and rapid chargers only.
Building on the Energy Saving Trust feasibility report, BCC is set to implement a ‘High’ scenario take-up of ULEV/ZEC taxis, which will integrate with the Clean Air Zone work programme, to maximise impact and support for our taxi fleet.
SECTION 2: ULEV taxi uptake
This section will enable OLEV to understand the likely uptake in your area, and hence the infrastructure required. This application pack is for infrastructure funding. Bidders should be confident that OLEV will provide the necessary support for purpose built taxis.
Numbers throughout this document should be taken directly from your feasibility studies or OLEV’s feedback on your feasibility study. The number and percentage of fleet converted will help demonstrate the impact of your bid.
2.1 Existing taxi and private hire vehicle fleet:
- current number of hackney carriages (HC) in bidder’s area 1,229
- current number of purpose built taxis1 (PBT) in HC fleet 628 - current number all private hire vehicles (PHV) in the bidder’s area 4,060
2.2 Forecasted uptake:
Scenario HC ULEV of which PHV % of total % of total % of all uptake how many ULEV HC fleet PHV fleet taxi fleet are PBTs uptake to be to be to be ULEV by ULEV by ULEV by 2020 2020 2020
Low 20 20 168 1.5% 5% 4%
Medium 195 195 1010 15.8% 30% 23%
High 526 526 2089 42.8% 62% 50%
SECTION 3 – Local regulatory measures
3.1 The uptake scenarios within your feasibility study, as shown in table 2.2, were based on your current and planned regulatory measures incentivising uptake. Please indicate which scenario you are bidding for based on the regulatory changes you are committing to.
1 For the purposes of grants for ULEV taxis the scheme will focus on purpose built taxis that meet the criteria set out for Category 1 vehicles under the PICG and meet TfL’s Taxis’ Conditions of Fitness requirements as specified here: http://content.tfl.gov.uk/taxi- conditions-of-fitness.pdf
Birmingham City Council is bidding for the ‘High’ scenario based on the regulatory changes we are committing to.
3.2 Details on your regulatory measures affecting hackney carriage and private hire vehicles fleets are essential to help understand which uptake scenario is likeliest. Please indicate below existing regulatory requirements that could increase the uptake of ULEV taxis in bidder’s area. 300 word limit
Birmingham is set to be mandated by the UK Government to introduce a Clean Air Zone by 2018/19 to enable compliance with air quality targets by 2020. This will impact on the Hackney Carriage & PHV fleet. The hackney carriage and private hire trade (TPH) operate under local licence and subject to regulation established and enforced by BCC as the licensing authority. The current regulations provide an immediate starting point for the take up of ULEV vehicles as part of a phased review and development, and covers; 1. Total number of hackney carriages licenced to operate – this is currently capped and can be reviewed again given an over-supply as identified at the 2014 demand survey. 2. Vehicle restrictions; including age limits, accessibility criteria and technical conditions of fitness. Currently set at 14 years for a Hackney Cab and 8 years for a PHV, vehicles can be older if they pass an exceptional condition test. This has resulted in some vehicles being more than 20 years old. By December 2017, BCC will no longer licence Hackneys that fall below Euro 3, removing around 451 of the oldest Hackney Cab vehicles alone, opening up the opportunities for ULEV take up. 3. BCC also tenders for and contracts TPH companies to provide transport services for local schools and social services contracts. Working with our BCC procurement services, we are setting ULEV specification criteria for the tendering of these contracts.
3.3 Where appropriate please indicate below regulatory measures that have been agreed by the local authority and are currently in the process of being put in effect. Please indicate when this is likely to come into effect and the process for achieving this. Supporting documentation outlining the proposed change would be helpful to demonstrate the local commitment.
N/A
3.4 Please indicate below any regulatory measures that you are planning to introduce and when this is likely to come into effect. What degree of commitment has already been obtained for this?
BCC are developing an Air Quality Policy Framework of regulatory measures and programmes set to be approved by early 2017, including;
Proposed Taxi Licensing Policy that establishes ULEVs for new licensed
vehicles from 2017; Euro 6 for existing diesel vehicles/Euro 5 for petrol vehicles as a minimum standard for all licensed taxis by 2018 meeting CAZ requirements, followed by ULEV /ZEC standard by 2026 for the whole taxi fleet.
The proposed Taxi Policy, sets emission standards as a key requirement, aiming to deliver health benefits & compliance. Recognising that changing a vehicle is a major investment decision for owners, who want to keep their vehicle on the road as long as possible, the taxi policy is supported by finance support programmes, communication campaigns and ongoing trade engagement, to prioritise the early transition to ULEV and zero emission vehicles. For some taxi owners financial affordability will be an issue. An interim option (maximum period of 5 years) of retrofit solutions that meet or go beyond Euro 6 for diesel Hackney Cab vehicles, will also be made available. Wheelchair side access vehicle entry regulation.
Current regulation only allows for licensed Hackney Cabs to have side entry- the plans to review this regulation are currently underway to potentially allow rear entry to the vehicle for wheel chairs which will have the benefit of wheelchair users facing the front. This will open up the range of EV vehicles that can be licensed as a Hackney Cab, & wheelchair accessibility for PHV ULEV/ZEC fleet market options.
PHV EV vehicle access to bus lanes.
Currently, only Hackney Cabs have access to bus lanes. PHV trade have long argued for access. A review of this regulation is currently underway where consideration will be given to allowing ULEV PHVs access as part of this process taking account of the recommendations of the review.
SECTION 4 – Chargepoint infrastructure
Indicative costs (see also paras 3.5 - 3.16 of the scheme guidance): a. £22.5k for procurement and installation of Rapid DC/AC combined chargepoints (greater than 50kW DC/22kW AC or greater). If costs are significantly higher, for example in relation to DNO connection costs, please discuss with OLEV on a case by case basis; b. £7k for procurement and installation of Fast or Semi-rapid DC chargepoints (greater than 10kW); c. £3k for procurement and installation of Fast or Semi-rapid AC chargepoints (greater than 7KW). We will not fund any slow chargers.
4.1 Please include numbers for each scenario irrespective of the scenario you are bidding for:
Scenario Fast/rapid Fast/rapid Rapid Total Infrastructure AC charge DC charge charge funding request points (c. points (b. Points (a. above) above) above) Low -chargepoints 10 £225,000 Low -cost £225,000 Medium -chargepoints 20 57 £1,422,500 Medium -cost £140,000 £1,282,500 High 1,282 -chargepoints 97 100 £2,929,000 High -cost £679,000 £2,250,000 £2,929,000
4.2 Indicate your proposed funding profile for OLEV’s infrastructure contribution:
2016/17 2017/18 2018/19 2019/20 Low £67,500 £67,500 £90,000 Medium £327,500 £350,000 £409,000 £336,000 High £701,000 £730,500 £760,000 £737,500
4.3 Indicate your proposed funding profile for your whole infrastructure programme 2016/17 2017/18 2018/19 2019/20 Low 22,500 22,500 30,000
Medium 109,166 116,667 136,333 112,000
High 233,666 243,500 253,333 245,833
The figures as outlined above reflect a baseline funding profile that matches the OLEV request for funding 197 chargepoints. The EST feasibility study notes 53 chargepoints to cover Hackney Carriages and 291 to cover the PHV fleet (344 in total). The city centre locations and charging point strategy remains the same. Our bid is for 197 chargepoints to be funded through OLEV funding, we have consulted further with PHV trade and EV network partners and WPD and taken other factors into consideration; The civil costs/WPD connections range from £2,800 to £153,000 for the various sites- this makes it unfeasible to cover the number of sites to accommodate 344 charging units. Reducing the number of sites based on a strategic location strategy (which is the city centre model), needs to be applied to the PHV model as opposed to being based on PHV numbers. PHV Operators and drivers support a key radial route re Outer ring road taxi-only charging strategy, which has approximately 30 access roads and other key locations in proximity to PHV operators outside the city centre. 70% of taxi drivers have a drive or garage- Drivers have expressed an interest in taking up home charging. This support will be part of our support programme and private sector match funding arrangements. PHV Operators and drivers support a key radial route re Outer ring road taxi-only charging strategy, which has approximately 30 access roads and other key locations in proximity to PHV operators outside the city centre.
Additionally, we will be procuring an EV network infrastructure partner with commercial funding opportunities to invest in; the super hubs & facilities; wider taxi-only infrastructure development as demand grows; and commercial integrated technology opportunities. This private sector investment/whole infrastructure match funding will be in excess of £1m. Levels of investment will be negotiated as part of the procurement process and will be more detailed as a result of this process.
4.4 Please describe the work you have done on site identification, grid capacity and land ownership. Please provide separately a map of planned infrastructure, additionally with a list of sites. 300 word limit
BCC initially developed the ‘Birmingham Blue Print’ strategy document identifying infrastructure/location requirements to support fleet transition to ULEV and Zero emission fleets.
Significant planning for deployment includes New St Station site on Ellis Street (Network Rail owned) identified as the main city rank, to be a key charging hub. Similarly, Tyseley Energy Park (TEP) was identified as a second key hub , and as a low/zero emission re-fuelling hub for electric, hydrogen, CNG, LPG and bio-diesel- given its proximity to Birmingham airport , the NEC , M42 motorway network and A45 arterial route . Both Hubs generate their own renewable energy, where benefit of zero emissions for Taxi-only charging facilities has been prioritised. In depth planning for grid capacity requirements (Appendix 1 ) has been undertaken, with BCC supporting TEP to establish Planning Permission (24th November 2016). Further analysis of Licensing Authority data shows that a large proportion of drivers live on the east side of the city around Tyseley, Nechells, Bordesley, Small Heath and South Yardley. The EST feasibility study consultation process, further identified that having local rapid charging would encourage take up a ULEV/ZEC vehicle.
The 9 locations listed/mapped in Appendix 2 are in priority order, based on their importance to the continuity of the existing taxi trade, as indicated via consultation survey responses. They are a mix of private land owner and public sites, where the DNO (Western Power Distribution) have confirmed power capacity and grid connection costs.
Out of city locations, where arterial roads join the A4040 ring road (Appendix 2), will provide charging opportunities to specifically address Private operator driver’s requirements ( latest engagement meeting on 12th Dec 2016) that operate outside the city centre. BCC is in the process of now confirming sites and grid capacity with the DNO.
4.5 Please indicate below how you plan to install, maintain and monitor the charge points e.g. who will be responsible. Please confirm your proposed procurement process for the infrastructure e.g. will be you be conducting a full OJEU procurement?
300 word limit
Following on from location & power budget estimates from WPD, BCC installation plan is to procure through the OJEU process, an EV network infrastructure provider/consortium to design the 2 super hub set-up and facilities, and carry out all site audits regarding layout and location of charging bays, existing and proposed substation, being wary that land ownership in the vicinity may impact on routing of electricity connections, as well as; Location of other utilities e.g. gas. Ensuring proposed bays/infrastructure are not in high density footfall, or negatively impacting surroundings. Ensuring security with CCTV and lighting Availability of GPRS (2G) mobile phone signal Considering parking fits with existing restrictions, signage and access to & from the site. Charge points meeting DFT guidance, and whether a Traffic Regulation Orders (TRO) are required. Requirement for maintenance & monitoring contract for the chargepoint network. Co-ordinated through procured provider, WPD will provide exact costs, power on date, substation location and meter positions. An electricity supplier will be engaged for the distribution system and energy. WPD carry out all non-contestable work, including determining the connection point to the distribution system, reinforcing the distribution system, agreeing and obtaining legal consent.
The procured provider will complete the installation ensuring: Controls and outlets are 0.75-1.2m above the ground ensuring accessibility. Maintenance access covers can be removed. Impact protection installed to protect the infrastructure.
Service Level Agreement (SLA) It is crucial that hardware is reliable to facilitate adoption of the new technology by drivers and vehicle owners. Through an SLA, procured network operator will be responsible for monitoring reliability. A high rate of uptime (c. 90 per cent) will be set as a KPI. The provider will be responsible for collating and submitting to BCC charging event data in line with OLEV requirements for monitoring purposes. BCC will be responsible for reporting data to OLEV.
4.6 How do you plan to address any state aid implications, for example managing within de minimis levels? 200 word limit
We are working with our Legal advisors in regard to the different sites that are both public and private sector owned to ensure that for private sector hosts, they stay within De Minimis levels when they establish the site.
For public sector owned sites we are looking at using an established EC decision that states that funding to establish land as suitable for redevelopment does not constitute state aid (SA.36346).
Further to this, we are clarifying that where public funding is used on private land for civil works required to enable the development of a wider benefit to achieve a common good eg better air quality constitutes not being state aid.
4.7 Please indicate how your infrastructure will meet OLEV’s technical specifications for taxis set out at the end of the ULEV taxi guidance document and indicate any further standards you will seek in your area?
It is a condition of the funding that any chargepoint must be:
maintained in a serviceable condition for a minimum of 3 years; accessible to taxi drivers on a pay as you go basis;
able to show live data e.g. on the availability of the chargepoint; and considered against an equality impacts so that the needs of all potential users can be met. 100 word limit
Detailed technical specifications that meet the OLEV technical requirements as set out in the guidance document with set conditions will be drafted to initiate a compliant OJEU procurement exercise. The tender process criteria will be scored using the technical requirements and conditions (maintenance, accessibility, live data, usability and equality impact). Further requirements include added value Oi;lioiygthrough energy management technology, IoT smart networks and commercial investment in infrastructure development including the 2 super hubs.
This will enable BCC to enter into a contractual relationship with an SLA, giving greater certainty to costs, delivery of technical specifications, conditions and added value.
Infrastructure match funding
Value for money is a key assessment criteria. This section allows bidders to demonstrate what match funding they, or other parties, will be able to provide.
4.8 Please indicate if you have agreed or expect match funding for infrastructure e.g. with any taxi companies, land owners or private sector companies? 150 word limit We are expecting match funding from the private sector EV network provider (see letters of support) and the associated network of commercial partners to cover the 25% match funding, meeting OLEV grant requirements for the charging infrastructure for 197 charge points as a minimum. From our soft market soundings with EV network providers, indication has been given that they would commit to develop the infrastructure up to the overall numbers identified in the feasibility study (53 to support Hackney Cabs and 291 for private hire).
Match for the overall Birmingham scheme from commercial/ private partners would also include funding the 2 iconic super hub facilities. This has been estimated at £250k each for the canopy shelter and facilities.
Other match will include funding the energy management technology and IoT smart networks and backend ‘roaming’ /pay as you go systems. We are anticipating Land Owner match funding in line with the requirements of State Aid.
4.9 Please indicate whether as a local authority you will be contributing any match funding for infrastructure? 150 word limit The Taxi-only EV infrastructure development will be a public/private collaboration, where the match will be provided through the industry partner/s to be procured. BCC sees its role as the enabler for the infrastructure to be developed to have wider benefit for the city in improving air quality. Although BCC will be monitoring utilisation, reliability and working with the Licensing Authority to underpin the development with regulatory measures, it will not be managing the commercial running of the network.
BCC will be providing the resources to develop the infrastructure through project management, legal, finance, audit, PR and communications, programmed access to finance support, as well as Licensing Authority inputs, Transport & Highways regarding implementing TROs, Planning officer time for necessary planning permissions required. This is estimated at a £200k revenue cost over 3 years. This represents a major investment at a time of budget cuts in local Authority spend, but one that has major benefits for air quality, health and well-being.
SECTION 5 – Stakeholders
This section allows bidders to demonstrate the deliverability of their planned scheme by showing the readiness of taxi drivers and companies in bidders’ area to take advantage of this scheme.
5.1 Please indicate the number of hackney carriage drivers that responded to your feasibility study and the percentage of these drivers that use a purpose built taxi. 83 responded. 100% use purpose built taxi.
5.2 Please indicate the number of private hire vehicle operators in bidder’s area. List major operators and if possible their number of vehicles and market share. Please indicate if they responded to the survey. 100 word limit
BCC Licencing Authority have 72 licensed operators and 4060 licenced vehicles. There 18 major operators with more than 100 drivers (listed in Appendix 3), with the remaining 54 operators with less than 100 drivers.
In determining market share this is worked out on numbers of drivers as operators do not own the vehicles but own the radio operation and employ licensed drivers. Vehicles driven by the drivers are under various shared vehicle, leased vehicle and owned vehicle models.
Those that responded to the survey and ongoing consultation include;
Operator Trading Name % of Market Share Drivers 247 CARZ 10 417 A CARS 5 216 AMBASSADOR CARS 3 129 A.K. EXECUTIVE CARS 4 171 STAR CARS 7 291 UBER 25 1025
5.3 Please indicate any positive responses received or specific agreements with any hackney carriage and private hire operators that will incentivise ULEV taxi uptake?
Hackney Carriage
TOA Taxis, an operator with 400 vehicles and contract holder for the NEC and airport, confirmed the importance of the proximity of Tyseley Energy Park hub to their daily operation of city to airport/NEC journeys, recognising fuel economies and opportunities to own a ULEV fleet to rent to drivers.
Private Operators
Uber and Star Cars , covering 31% of Birmingham PHV drivers, are keen to collaborate on; Piloting of free EV taxis to encourage take up Collaboration with electric supply providers to support drivers with home charging. Support through vehicle purchase and leasing arrangements Deploy ZAP MAP app for drivers.
5.4 Please outline how you plan to address any perceived obstacles to ULEV uptake within your area. 200 word limit
Lack of infrastructure – create leverage & commercial investment opportunities to add value and maximise EV charging that is universally accessible, convenient, with ‘roaming’ payment system, pitched as part of an integrated ULEV public transport system. BCC have market tested EV infrastructure providers who are keen to invest (see letters of support) in iconic Super Hubs; home charging incentives, development of maps, apps e.g. ZAP Maps and smart technology; ongoing taxi trade engagement to ensure accessible & reliable on-street charging that meets daily operational requirements.
Cost of EV vehicle & of battery including replacement – engage stakeholders to show new generation vehicles, battery life and cost models, total cost of ownership Vs diesel vehicles; identifying new models of ownership, with new lease operators set to enter the Birmingham market, with affordability as a key factor; build consumer confidence through free trialling of vehicles; and access to finance support including Islamic Finance for majority of Birmingham community taxi drivers.
Vehicle replacement with just Euro 6 – being addressed through licencing regulations; communication campaign; working with manufacturers to ensure vehicle availability; viable models of ownership; and programmed support to taxi owners to access available funding to support EV vehicle purchase.
Driver and Operator comments
5.5. Please indicate the percentage of hackney carriage drivers that are likely to consider a pure electric taxi when they next replace their vehicle? Please insert figures including and excluding those who answered ‘don’t know’. If possible, please insert figures for private hire drivers.
73% excluding Don’t knows: 86% including ‘Don’t Knows. PHVs 60%.
5.6. Please indicate the percentage of hackney carriage drivers that are likely to consider a plug-in hybrid taxi when they next replace their vehicle? Please insert figures including and excluding those who answered ‘don’t know’. If possible, please insert figures for private hire drivers.
42% excluding Don’t knows: 59% including Don’t knows: PHVs 40%
SECTION 6 – Monitoring and Innovation
A strong demonstration of monitoring requirements will allow bidders to show that any potential funding will be good value for money.
6.1 Please set out your plans for monitoring ULEV hackney carriage and private hire vehicle uptake 100 word limit
Reduce oldest vehicles from the fleet by December 2017. Provide finance support & accessible infrastructure in line with predicted take up.
Stronger regulation – ULEVs for new licensed vehicles for PHV, Euro 6 (new or retrofit solution) for Hackney Cabs, only if ULEV not on the market, or affordability issue. By 2026, all taxi fleet ULEV.
Programmed database monitoring & annual targeted numbers for ULEV/ZEC take up;
Hackneys 2017 2018 2019 2020 Total 110 129 152 135 526
PHVs 700 716 730 721 2867
Collaborate with NHS, universities & schools re criteria of patient/pupil transport contracts for ULEVs in their fleet Work with Network Rail, CAZ, Highways teams re access benefits to ULEV taxi drivers/operators.
6.2 Please outline the planned governance structure for managing the delivery of this programme, for example, organogram of the governance process, SRO and indication of resource available to manage and deliver the scheme 150 word limit
Cabinet sign off Finance & Audit ULEV Vehicle Manufacturers SRO Anne Shaw Legal Services & Governance AD Growth & Hackney Cab & Transportation PHV Trade Group
G & T Project Management & BCC Licencing Authority
Steering Group
Policy Finance/admin
Support & Procured delivery Procurement Infrastructure Officers Partner EV private owned site Partners BCC Highways & Transportation for deploying public sites
An overall Project Manager has been identified to oversee the implementation and deployment of the programme in collaboration with the BCC Licensing Authority, led by the Chair of the Licensing Committee and Head of Licensing.
Finance & Audit, Legal & Procurement structures already exists supported through Local Authority Governance processes. Through the EV Taxi –Only OLEV feasibility, key elements have been identified and progress made towards the policy changes that are required, including the data base of Hackney Cabs and PHVs; actioned communication structure of Taxi Trade forums, meetings, newsletters, email contact; soft market testing with EV infrastructure providers with commitment of resource & investment to support BCC & taxi owners/drivers towards a ULEV fleet e.g. access to finance programme including Islamic Finance, home charging support, & new models of ownership (shared ownership & leasing).
Innovative measures that enhance chargepoints’ ease of use for drivers or promote uptake will contribute to the impact of bidder’s proposals.
6.3 Please outline any innovative approaches you plan to deliver within this scheme. This might be in relation to charge points, advertising etc. Please also use this section to elaborate on any plans that you have not had an opportunity to add elsewhere.
Two Solar canopied (10-20 kWp) 24/7 super -charging hubs at Tyseley Energy Park (TEP) & New St Station Ellis St Car Park roof top. These will have refreshment facilities as well. The 2 super-charging hubs will provide electricity sourced from renewable energy for vehicle charging. In particular, TEP produces 100MWs of energy from wood bio-mass. The taxi-only electric charging will be part of a wider low/zero emission re-fuelling hub to support fleet ULEV transition, with an ambition for the taxi fleet as an integrated ULEV public transport offer to support modal shift.
Access to funding support. Working with EV Manufacturers including LTC and PHV taxi operators (Star Cars and Uber) to provide ;programmed support to access national OLEV funding, Hackney Carriage top-up funding; Islamic finance, Credit Union loans and match funding from electric companies for home charging. Creating clusters of EV use through piloting and free use of EV vehicles from Manufacturers of lesser known models. Collaborating with other Local Authorities to agree EV vehicle standards for licensing for PHVs. New models of ownership- encouraging new entrants to the licensed operator market that own ULEV fleets to enable vehicle sharing, leasing options to support affordability. Current approaches have been made from large vehicle engineering companies, current vehicle rental companies. Integrating smart technology- with ‘Roaming’ technology as a pre-condition of EV charging infrastructure for pay as you go – create wider city maps and apps of available charge units e.g. ZAP MAP, supporting licenced Operators with the take-up of smart technology to support their drivers; using smart technology to enable cheaper rate of electricity/energy for re-fuelling.
SECTION 7 – Air Quality section
This section will allow bidders to demonstrate the air quality challenge in their area, the impact of hackney carriages and private hire vehicles on local air quality and the potential benefits of this scheme.
7.1 Describe the local air quality challenge in your area, highlighting the geographic extent of any current or projected exceedances 2 air quality management areas (AQMAs). Please highlight the current state of NOx emissions and roadside concentration levels of NO2. If available, include any additional statistics, in particular, road lengths assessed that exceed the EU concentration limit values.
Birmingham has a declared whole borough AQMA for NO2. The main areas of exceedance are in the city centre although key arterial routes retain high levels of NO2. Defra have indicated that Birmingham will not comply with the limit value until 2025 and are mandating a CAZ for the city to bring forward compliance to no later than 2020. The areas of exceedance in the Defra model are on the A38, the main highway through the city centre (see Q7.2). From BCC monitoring, other city centre areas exceed including Moor Street Queensway (prioritised bus and taxi route) whilst areas designated as taxi ranks are becoming increasingly in focus due to levels in exceedance or close to the legal limit 36 ugm-3 - 50ugm-3 at key ranks.
The geographic extent is modelled1 as below. Within the inner city centre area, monitoring data at or near to each taxi rank site shows the levels to be in exceedance or close to the legal limit.
Colmore Row & St Phillips Churchyard – 36 ugm-3 Snow Hill station 39ugm-3 The Mailbox and Navigation Street – 50ugm-3 Broad Street - 49ugm-3 and Stephenson street - 41ugm-3
Annual mean NOx concentrations in Birmingham (modelled data)1
1 Source: Air Quality Action Plan 2011, Birmingham City Council, Figure 8, p.40 (July 2011)
7.2 Describe the impact of hackney carriages and private hire vehicles on local air quality in your area quantifying where possible. 150 word limit
Data shows 80% of taxi rank spaces are within the City Centre, where 53 taxi ranks operate for 24 hours covering 50% of total spaces. NOx Source apportionment identifies a range of vehicle types accessing the city centre, including taxis.
The Low Emission Zone Technical Feasibility Study commissioned by the Low Emissions Towns and Cities Project, and undertaken by Ricardo AEA comprises source apportionment studies at various monitoring sites. For the Birmingham city centre study the site was the A38 near the Children’s Hospital; this showed that diesel cars contribute 39% of all NOX emissions with a corresponding 59% of all primary NO2. The expectation is that areas with higher concentrations of taxis, e.g. outside the Children’s Hospital, will have a greater direct pollution burden. The major contribution to NOx emissions in specific areas are from taxis standing with engines running for extended periods, which occurs across all the primary ranks.
Source apportionment of oxides of nitrogen emissions:
Source apportionment of primary nitrogen dioxide emissions
7.3 Please describe how conversions to ULEVs on each of your funding scenarios will impact local air quality quantifying where possible. 150 word limit The taxi fleet comprise 1,262 hackney carriages and 4,098 private hire vehicles licensed by BCC, undertaking 16.69 - 27.87million journeys per annum. The EST feasibility study analysis identified the average NOx output of vehicles in BCC hackney carriage fleet as 0.664g/km, typical of an ageing fleet of diesel fuelled vehicles, indicating that the mean average vehicle in the hackney carriage fleet at Euro 2.
The average daily mileage of the hackney carriage fleet (combined working and commuting mileage), as indicated by the drivers’ survey is 87 miles. Assuming a six day working week, this means the approximate total NOx emissions of BCC’s hackney carriage fleet alone is 35.7 tons per year. Using the Hackney carriage fleet as an example of impact , the NOx output would be improved by the various ULEV uptake scenarios as follows;
Present Low Medium High NOx Ave. 0.664 0.611 0.531 0.380 g/km Total NOx (g) 35,704,896 32,847,071 28,569,876 20,423,549 Total NOx 2,857,825 7,135,021 15,281,347 Change (g) % Change 8% 20% 43%
7.4 Please describe how funding from OLEV’s ULEV taxi scheme will integrate into existing measures to support the uptake of ULEVs and tackling poor air quality
150 word limit
Integrating into Existing measures include;
Air Quality Policy and work programme that addresses infrastructure development measures including development of ULEV/Zero emission re- fuelling infrastructure , SME/ employer owner (including taxi owners & operators) business support & fleet transition programmes; Innovation programmes to develop retrofit solutions; Transport infrastructure projects e.g. Green Travel Districts, road closures, 20/30mph speed limits in the city, re-routing, traffic management and signalling upgrades. Current LPG Euro 6 retrofit programme for TX1, TX2 and TX4. Deployment of air quality measurement & monitoring infrastructure, aligning with Public Health programmes, communication and awareness raising actions with Taxi drivers as a key stakeholder group; analysis of impact of air quality on 1) health, 2) economy/business, and 3) equality in the city. Implementation of Clean Air Zone which at a minimum will impact on all commercial vehicles including taxis, as part of strategic transport policy prioritising modal shift to ULEV public transport , walking & cycling.
Submission of Bids
The deadline for bids is 5pm, 22 December 2016 An electronic copy should be submitted to [email protected] Please attach any letters of support along with this bid application
If, for any reason, you need to send hard copies of papers to OLEV, please provide 5 copies to:
Stewart Agnew OLEV First Floor Department for Transport Great Minster House 33 Horseferry Road London SW1P 4DR