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HomeMy WebLinkAbout11.a. Receive updates on the Fleet Electrification Strategic PlanItem 11.a. March 7, 2024 T O: HO NO R A B L E B O A R D O F D I R E C TO R S F RO M :R I TA C HE NG, R E G UL ATO RY C O MP L I A NC E S E NI O R E NG I NE E R RE V IE WE D B Y:L O R I S C HE C T E L , E NV I R O NME NTA L A ND R E G UL ATO RY C O MP L I A NC E D I V I S I O N MA NA G E R G R E G NO R B Y, D E P UT Y G E NE R A L MA NA G E R - O P E R AT I O NS R O G E R S. B A I L E Y, G E NE R A L MA NA G E R S UB J E C T: R E C E I V E UP D AT E S O N T HE F L E E T E L E C T R I F I C AT I O N S T R AT E G I C P L A N To ensure compliance with the C alif ornia Air Resources Board’s Advanced Clean F leets Regulation and the Clean C ars I I Regulation,a D istrict-wide F leet Electrification S trategic Plan was developed to outline a phased approach to electrify C entral San’s f leet and implement electric vehicle charging inf rastructures. Staf f and consultants from Optony, I nc., will review the attached presentations on the F leet E lectrif ication Strategic P lan. Strategic Plan Tie-I n G O A L TW O: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - I dentify and advance sustainability initiatives, including reducing energy usage and emissions AT TAC HM E NT S : D escription 1. P resentation - F E S P I ntro slides 2. P resentation - Optony March 7, 2024 Regular Board Meeting Agenda Packet - Page 237 of 306 Page 1 of 17 1 Fleet Electrification Strategic Plan Updates Rita Cheng, P.E. Senior Engineer Regulatory Compliance March 7, 2024 Board of Directors Meeting Acknowledgements Project Oversight •Resource Recovery –Melody LaBella 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 2 1 2 Attachment 1 March 7, 2024 Regular Board Meeting Agenda Packet - Page 238 of 306 Page 2 of 17 2 Fleet Electrification Drivers •Regulatory •CARB Advanced Clean Fleets Regulation •CARB Advanced Clean Cars II Regulation •Greenhouse Gas (GHG) Reduction •Supports Central San’s Net Zero initiative •Reduces Scope 1 direct GHG emissions 3 Fleet Electrification Strategic Plan •Current strategy defers the acquisition of electric vehicles until 2025 or beyond to allow adequate time for the installation of the first phase of electric vehicle charging stations. •The charging needs proposed by Optony, Inc. represent the minimum recommendations, based on: •Typical driving patterns; •Operational needs (+ a ~20% safety factor); •Emergency response 4 3 4 March 7, 2024 Regular Board Meeting Agenda Packet - Page 239 of 306 Page 3 of 17 3 Optony Presentation 5 5 March 7, 2024 Regular Board Meeting Agenda Packet - Page 240 of 306 Page 4 of 17 1 CENTRAL CONTRA COSTA SANITARY DISTRICT Fleet Electrification Strategic Plan Presented by Natalie Hanson & Rachel Lore March 7, 2024 1 AGENDA 1. Introductions 2. Fleet Electrification Strategic Plan Objectives 3. Fleet Electrification Results 4. Charging Infrastructure Results 5. Financials 6. Funding Opportunities 7. Final Recap 8. Q&A 1 2 AAttachment 2 March 7, 2024 Regular Board Meeting Agenda Packet - Page 241 of 306 Page 5 of 17 2 CONSULTING TEAM Byron Pakter Chief Executive Officer Natalie Hanson Director of Energy Programs Coleman Thompson Energy Systems Analyst Rachel Lore Electric Vehicle Analyst Scott Clemons, PE Electrical Engineer FLEET ELECTRIFICATION STRATEGIC PLAN OBJECTIVES 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 The Fleet Electrification Strategic Plan is a 15-year multi-phase plan with the following goals: 3 4 March 7, 2024 Regular Board Meeting Agenda Packet - Page 242 of 306 Page 6 of 17 3 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 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 5 6 March 7, 2024 Regular Board Meeting Agenda Packet - Page 243 of 306 Page 7 of 17 4 ADVANCED CLEAN FLEETS •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. VEHICLE EXEMPTIONS 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 7 8 March 7, 2024 Regular Board Meeting Agenda Packet - Page 244 of 306 Page 8 of 17 5 PART 1: FLEET ELECTRIFICATION 1. Electrification Timeline 2. GHG Emissions Reductions 3. Capital Budget 4. Total Cost of Ownership 5. Financials WHAT WE FOUND •Central San’s fleet of over 100 vehicles were studied for electrification Pickup 55% Truck 11% Van 7% Dump Truck 7% Vacuum Truck 6% Sedan 5% SUV 4% Chassis Cab 3% Box Truck 1% Bucket Truck 1% CSO 49 vehicles Martinez Treatment Plant 48 vehicles Pumping Stations 7 vehicles 9 10 March 7, 2024 Regular Board Meeting Agenda Packet - Page 245 of 306 Page 9 of 17 6 2040 FLEET ELECTRIFICATION TIMELINE 0 2 4 6 8 10 12 14 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Nu m b e r o f V e h i c l e s P u r c h a s e d Light Duty (Exempt from ACF Regulations) Medium or Heavy Duty Exempted from ACF (Expiration Date TBD) GHG EMISSIONS 0 50 100 150 200 250 300 350 400 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Me t r i c T o n s o f C O 2e Emissions - 2022 Baseline Emissions - Medium- and Heavy-Duty Vehicles Only Emissions - Whole Fleet Electrification Excluding Exemptions Emissions - Whole Fleet Electrification Including Exemptions 11 12 March 7, 2024 Regular Board Meeting Agenda Packet - Page 246 of 306 Page 10 of 17 7 EV SUITABILITY – EXAMPLES Ford F-150 Lightning MSRP: $49,995+Ford E-Transit MSRP: $51,500+ Chevrolet Silverado EV MSRP: $74,800+ PURCHASE PRICE COMPARISON 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Mi l l i o n s o f D o l l a r s ~$1.1M Expense Internal Combustion Engine Fleet EV Fleet Ford F-150 Lightning MSRP: $49,995+ Ford F-150 XL Standard MSRP: $33,800+ 13 14 March 7, 2024 Regular Board Meeting Agenda Packet - Page 247 of 306 Page 11 of 17 8 TOTAL COST OF OWNERSHIP •Whole Fleet Electrification Excluding Exemptions maximizes fueling savings, operations and maintenance savings, and available EV incentives $378,363 $1,851,946 $2,996,046 $3,971,914 $5,366,134 $6,164,465 $6,295,760 $6,770,521 $365,974 $1,749,357 $2,807,005 $3,868,955 $5,252,334 $5,833,600 $6,011,453 $6,569,878 $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 To t a l C o s t o f O w n e r s h i p ( $ ) EV vs ICE Incremental Cost ICE TCO EV TCO OVERALL TCO FOR EV REPLACEMENTS 6.5 6.6 6.6 6.7 6.7 6.8 6.8 6.9 Mi l l i o n s o f D o l l a r s ~$200,000 Savings Internal Combustion Engine Fleet EV Fleet 15 16 March 7, 2024 Regular Board Meeting Agenda Packet - Page 248 of 306 Page 12 of 17 9 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 CHARGER ASSIGNMENTS •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) •Level 3 high-power (25 kW, DC Fast Charger) •Level 3 very high-power (200 kW DC Fast Charger) 6 – 8 hours 4 – 6 hours 15 – 45 minutes 17 18 March 7, 2024 Regular Board Meeting Agenda Packet - Page 249 of 306 Page 13 of 17 10 CSO PRELIMINARY DESIGNS MARTINEZ TREATMENT PLANT 19 20 March 7, 2024 Regular Board Meeting Agenda Packet - Page 250 of 306 Page 14 of 17 11 MARTINEZ TREATMENT PLANT PUMPING STATIONS 21 22 March 7, 2024 Regular Board Meeting Agenda Packet - Page 251 of 306 Page 15 of 17 12 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 •NOTE: These are preliminary estimates and are subject to change with market conditions EVSE FINANCING OPTIONS $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2024 2026 2028 2030 2032 2034 2036 2038 2040 Ma r g i n a l C o s t t o C e n t r a l S a n Cumulative EV and EVSE Costs Cumulative Marginal EV TCO Savings Cumulative EVSE Direct Purchase Costs FINANCIALS 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. ~$333,000 in Annual Marginal Costs Phase 1 EVSE Project 8 chargers ($1M) Phase 2 EVSE Project 21 chargers ($3.3M) Phase 3 EVSE Project 5 chargers ($850k) 23 24 March 7, 2024 Regular Board Meeting Agenda Packet - Page 252 of 306 Page 16 of 17 13 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. FINAL RECAP •Advanced Clean Fleets, effective January 1st, 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 25 March 7, 2024 Regular Board Meeting Agenda Packet - Page 253 of 306 Page 17 of 17