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Home My WebLink About04.a. Receive Update on the Fleet Electrification Strategic PlanPage 1 of 17 Item 4.a. F__1_448�411C_S0 February 20, 2024 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: RITACHENG, REGULATORY COMPLIANCE SENIOR ENGINEER REVIEWED BY: MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER LORI SCHECTEL, ENVIRONMENTAL & REGULATORY COMPLIANCE DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE UPDATE ON THE FLEET ELECTRIFICATION STRATEGIC PLAN To ensure compliance with the California Air Resources Board's Advanced Clean Fleets Regulation and the Clean Cars I I Regulation, a District -wide Fleet Electrification Strategic Plan was developed to outline a phased approach to electrify Central San's fleet and implement electric vehicle charging infrastructures. Staff and consultants from Optony, Inc., will review the attached presentations on the Fleet Electrification Strategic Plan. Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions ATTACHMENTS: 1. Central San Presentation 2. Optony Presentation February 20, 2024 REEP Committee Meeting Agenda Packet - Page 13 of 39 Page 2 of 17 ATTACHMENT 1 Acknowledgements Project Oversight Resource Recovery — Melody La Bella Project Support Regulatory — Robert Hess, Max David & Lori Schectel CSO—Jason DeGroot & Paul Seitz Maintenance Reliability —Steve Diethelm Electric Shop — Sean Sullivan & Adib Musawwir Pumping Stations — Leo Gonzalez Optimization — Michael Cunningham & Nitin Goel Capital Projects — Khang Nguyen, Nate Hodges, Adam Zaro & Edgar Lopez February 20, 2024 REEP Committee Meeting Agenda Packet - Page 14 of 39 Page 3 of 17 Fleet Electrification Drivers Regulatory CARB Advanced Clean Fleets Regulation CALIFORNIA CARB Advanced Clean Cars II Regulation AIR RE RESOURCES BOARD Greenhouse Gas (GHG) Reduction Supports Central San's Net Zero initiative Reduces Scope 1 direct GHG emissions 3 Fleet Electrification Strategic Plan irw- , Opt en Inc. was selected through a competitive procurement process to develop Central San's Fleet Electrification Strategic Plan ,-4 Current strategy defers the acquisition of electric vehicles (EVs) until 2025 or beyond to allow adequate time for the installation of the first phase of electric vehicle charging stations. r The charging needs proposed in Optony's report represent the minimum recommendations, based on typical driving patterns, operational needs (+ a —20% safety factor, and emergency response. � 4 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 15 of 39 2 Page 4 of 17 Fleet Operational Needs Electrification GoalsStrategic Plan Compliance Cost Resiliency D CENTRAL SAN �••c'. y �'� •� �'�. •_ - ' - c [aHm. GasiA Sumixx p5lPoce February 20, 2024 REEP Committee Meeting Agenda Packet - Page 16 of 39 3 Page 5 of 17 ATTACHMENT 2 1 AGENDA 1. Introductions 2. Fleet Electrification Strategic Plan Objectives 3. Fleet Electrification Results 4. Charging Infrastructure Results S. Financials 6. Funding Opportunities 7. Final Recap 8. Q&A z February 20, 2024 REEP Committee Meeting Agenda Packet - Page 17 of 39 Page 6 of 17 ®OPTONY CONSULTING TEAM Byron Pakter Natalie Hanson Coleman Thompson Rachel Lore Scott Clemons, PE Chief Executive Officer Director of Energy Programs Energy Systems Analyst Electric Vehicle Analyst Electrical Engineer GLUMAC 3 FLEET ELECTRIFICATION STRATEGIC PLAN OBJECTIVES The Fleet Electrification Strategic Plan is a 15-year multi -phase plan with the following goals: ➢ Comply with California's Advanced Clean Fleets Regulation ➢ Align with Central San's Environmental Stewardship goals and Net Zero Initiative ➢ Minimize costs of fleet electrification and charging-��.. infrastructure installation ➢ Preserve normal operations and emergency response capabilities ➢ Optimize charging infrastructure for electric fleet vehicles 4 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 18 of 39 Page 7 of 17 CALIFORNIA: THE CARROT AND THE STICK /? There are various federal, state, and local incentives, rebates, and tax credits that Central San can take advantage of to reduce the cost of electric vehicles (EVs) or electric vehicle charging infrastructure As a special district in the State of California, Central San is subject to the Clean Cars II Initiative and the Advanced Clean Fleets Regulation • 5 ADVANCED CLEAN FLEETS • The Advanced Clean Fleets (ACF) Regulation applies to fleets performing drayage operations, those owned by State, Local, and Federal government agencies, and high priority fleets • State and Local Government requirements: • Starting 2024, 50% of new medium- or heavy-duty vehicle purchases must be zero -emission vehicles (ZEVs) • Starting 2027, 100% of new medium- or heavy-duty vehicle purchases must be ZEVs LJ 0 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 19 of 39 3 Page 8 of 17 7 ADVANCED CLEAN FLEETS VEHICLE EXEMPTIONS • There are exemptions to ACF that Central San should take advantage of for vehicles that do not have a viable electric replacement option available on that market. NOTE: These exemptions for wastewater utility specialty vehicles are subject to approval from CARB. • FLEET ELECTRIFICATION STRATEGIC PLAN • Part 1: Fleet Electrification and Charging Needs Assessment • Outlines various timelines for compliance with Advanced Clean Fleets • Estimates the total cost of ownership savings from electric fleet vehicles • Evaluates potential funding and financing opportunities for EVs and electric vehicle charging stations • And more... • Part 2: Charging Infrastructure Site Designs • Explores near -term and long-term charging infrastructure solutions for electric fleet vehicles • February 20, 2024 REEP Committee Meeting Agenda Packet - Page 20 of 39 M Page 9 of 17 PART 1: FLEET ELECTRIFICATION 1. Electrification Timeline 2. GHG Emissions Reductions 3. Capital Budget 4. Total Cost of Ownership - 5. Financials Af;A ,�- I WHAT WE FOUND • Central San's fleet of over 100 vehicles were studied for electrification Pumping stations suv Chassis Cab Box Truck Bucket Truck 7 vehicles 4% 311 1% 1% Sedan \ 6% Vacuum Truck - \ C50 6% 49 vehicles Dump Truck Martinez Treatment 7% Pickup Plant - ss% 48 vehicles van Truck 11% -- 10 5 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 21 of 39 Page 10 of 17 2040 FLEET ELECTRIFICATION TIMELINE 14 ■ Light Duty (Exempt from ACF Regulations) 12 ■ Medium or Heavy Duty ■ Exempted from ACF (Expiration Date TBD) -o m 10 r 3 a y 8 or s 6 0 `w E 4 z' 2 0 ' • 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 11 GHG EMISSIONS 400 350 300 w O 250 V O 200 H 150 W 100 5o 0 12 — — Emissions - 2022 Baseline —Emissions - Medium- and Heavy -Duty Vehicles Only —Emissions - Whole Fleet Electrification Excluding Exemptions —Emissions - Whole Fleet Electrification Including Exemptions 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 0 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 22 of 39 Page 11 of 17 EV SUITABILITY - EXAMPLES Chevrolet Silverado EV MSRP: $74,800+ Ford F-150 Lightning MSRP: $49,995+ Ford E-Transit MSRP: $51,500+ i 1 i 13 PURCHASE PRICE COMPARISON 6.0 5.0 Expense 4.0 m 0 0 ° 3.0 c Ford F-150 XL Standard Ford F-150 Lightning MSRP: $33,800+ 2 0 MSRP: $49,995+ - -- 0.0 Internal EV Fleet Combustion Engine Fleet 14 7 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 23 of 39 Page 12 of 17 TOTAL COST OF OWNERSHIP • Whole Fleet Electrification Excluding Exemptions maximizes fueling savings, operations and maintenance savings, and available EV incentives $8,000,000 $7,000,000 $6,770,521 $6,164,465 $6,295,760 $6,000,000 2 $5,366,1 $6,569,878 t $5,833,600 $6,011,453 m $5,000,000 5,212,334 �1- $4,000,000 �3, $2,996,0 $3,000,000 0 z,so7,00s$2,000,000 �$1,851,946 749,357 $1,000,000 $378,363 $" $365,974 — — — — — — $(1,000,000) 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 EV vs ICE Incremental Cost —ICE TCO —EV TCO 15 OVERALL TCO FOR EV REPLACEMENTS 6.9 6.8 6.8 —$200,000 2 6.7 Savings 0 c c 6.7 6.6 6.6 6.5 Internal Ev Fleet Combustion Engine Fleet 16 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 24 of 39 Page 13 of 17 PART 2: CHARGING INFRASTRUCTURE A phased installation approach is recommended for these priority sites: • Collection System Operations (CSO) • Martinez Treatment Plant • 4 Key Pumping Stations: • Martinez • Moraga • Orinda Crossroads • San Ramon 17 CHARGER ASSIGNMENTS ■ E For • Based on historical fuel usage and mileage data, vehicles are assigned charger ports appropriate to their power requirements and duty cycles, with an added safety factor • Different levels of charging are used to meet the varied power needs: • Level 2 mid -power (11.5 kW) 6-8hours • Level 3 high -power (25 kW, DC Fast Charger) 4-6 hours • Level 3 very high -power (200 kW DC Fast Charger) 15-45 minutes • 10 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 25 of 39 M Page 14 of 17 CSO PRELIMINARY DESIGNS Level 2 (11.5 kW) dual charger Level 2 (25 kW) dual charger Level 2 (25 kW) single charger ■ 200 kW DC fast charger Existing Fleet Area r �I Existing Personal/Public Area �] CSO Boundary 19 MARTI N EZ TREATMENT PLANT Level 2 (11.5 kW) dual charger Level 2 (25 kW) dual charger Level 2 (25 kW) single charger ■ 200 kW DC fast charger Crj Existing Fleet Area r V Existing Personal/Public Area CSO Boundary 20 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 26 of 39 10 Page 15 of 17 MARTI N EZ TREATMENT PLANT '004 A Standby Power Building li ��okw Doal cha rger f , Level 2 (11.5 kW) dual charger Level 2 (25 kW) dual charger Solids Level 2 (25 kW) single charger Conditioning ■ 200 kW DC fast charger f . Building Existing Fleet Area !' - r �I Existing Personal/Public Area CSO Boundary � J ry M intenanee & l MechanlcalShopl Reliability (1) 11.Skw Dual Charger MCadwork5 (Maintenance RrliahilVty Centcrl [3) 25kW Dual Chargers 21 PUMPING STATIONS Level 2 (11.5 kW) dual charger Level 2 (25 kW) dual charger Level 2 (25 kW) single charger ■ 200 kW DC fast charger Crj Existing Fleet Area r V Existing Personal/Public Area CSO Boundary 22 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 27 of 39 11 Page 16 of 17 EVSE FINANCING OPTIONS Options for procuring EVSE: • Direct Purchase -Central San purchases outright and owns all charging stations • To take greater advantage of available charging infrastructure incentives, rebates, and credits, Central San is recommended to pursue Direct Purchase • Charging -as -a -Service (CaaS) - Central San essentially leases charging stations for a monthly fee • Based on the feasibility assessment, CaaS may be a cost-effective alternative to Direct Purchase, depending on contract terms as compared to Central San's low cost of capital • CaaS may reduce the initial capital expenditures and may ensure Central San is able to take advantage of modern charger stations as technology continues to advance �y • NOTE: These are preliminary estimates and are subject to change with market conditions 23 FINANCIALS Phase 3 EVSE Project Phase 2 EVSE Project $6,000,000 5 chargers�($850k) 21 chargers ($3.3M) $5,000,000 W c $4,000,000 n — ^$333,000 in Annual Marginal Costs w $3,000,000 Phase 1 EVSE Project 8 chargers ($1M) 0 o $2,000,000 c Ep $1,000,000 2024 2026 2028 203 2032 2034 040 $(1,000,000) Cumulative EV and EVSE Costs —Cumulative Marginal EV TCO Savings —Cumulative EVSE Direct Purchase Costs NOTE: The EV cost estimates include incentives, rebates, and tax credits from PG&E, Clean Vehicle Credit, and HVIP, but the charging infrastructure cost estimate does not account for any incentives, rebates, or tax credits. Some chargers may be expediated to take advantage of available incentives. 24 12 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 28 of 39 Page 17 of 17 FUNDING SOURCES IRS Clean Vehicle Tax Credit for new ZEVs purchased in 2023 or after offers up to $7,500 per EV that meets battery component and critical requirements California Hybrid and Zero -Emission Truck and Bus Voucher Incentive Project (HVIP) offers EV incentives for HVIP eligible vehicles PG&E EV Fleet Program offers EVSE rebates for eligible communities and EVSE incentives based on the number of medium- and heavy-duty vehicles to be electrified Marin Clean Energy EV Charging Rebate Program offers EV charging infrastructure incentives for Level 2 chargers • 30C Alternative Fueling Infrastructure Credit offers EV charging infrastructure incentives for government fleets NOTE: The estimated TCO cost of implementation of charging infrastructure does not include any incentives, rebates, or tax credits. 25 FINAL RECAP • Advanced Clean Fleets, effective January 15t, 2024, is a major regulatory driver for Central San's fleet electrification. • Central San's fleet of over 100 vehicles has many viable EV replacement options available on the market, and more to come as the market and technology develops. • Charging infrastructure will be developed through a phased transition to ensure sufficient charging at the Collection System Operations Division and Martinez Treatment Plant, with supplemental charging at the four key Pumping Stations. • The marginal cost to Central San is estimated to be $333,000 annually, accounting for electrifying the whole fleet except for Advanced Clean Fleets exemptions and installing fleet charging stations. However, this cost may increase or decrease based on available charging infrastructure incentives, rebates, or tax credits. • 26 February 20, 2024 REEP Committee Meeting Agenda Packet - Page 29 of 39 13