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Innovative Clean Transit Regulation for Zero Emission Buses

Innovative Clean Transit Regulation for Zero Emission Buses. CALACT Spring Conference and Exposition April 5, 2018 Newport Beach, California. Outline. Background Market status Funding opportunities December 2017 rule proposal Suggested areas of changes Zero emission buses

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Innovative Clean Transit Regulation for Zero Emission Buses

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  1. Innovative Clean Transit Regulation for Zero Emission Buses CALACT Spring Conference and Exposition April 5, 2018 Newport Beach, California

  2. Outline • Background • Market status • Funding opportunities • December 2017 rule proposal • Suggested areas of changes • Zero emission buses • Innovative zero emission mobility option • Low NOx engines and renewable fuels • Open discussion

  3. California Long-term Goals • California 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. Mobile Source Strategies Low Emission Diesel Fuel HD On-Board Diagnostics Vehicle Efficiency Phase 2 GHG 50% Ren Portfolio Standard In-Use HD Engine Retrofits Cap and Trade SB 32 2010 HD Engine Standard AdvancedCleanCars Low Carbon Fuel Standard Low Carbon Fuel Standard Update InnovativeCleanTransit Optional Low NOx Engine Stds Low NOx Engine Standards FurtherDeploying Adv. Tech. Transportation Electrification SB 350 Sustainable Communities SB 375 Inspection & Maintenance Car Scrap Zero Emission Airport Shuttle Bus HVIP Funding Funding Plan Heavy Duty Zero Emission Certification Advanced Clean Local Trucks

  5. California Transit Agencies • Long-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. Program History • Existing 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 * Meeting recording and summaries, are available at https://arb.ca.gov/msprog/ict/meeting.htm

  7. Recent Changes and Market Status

  8. Recent ZEB Market Changes • Dozens of transit fleets purchasing ZEBs • Multiple ZEB models available from several manufacturers • Several BEBs reaching 200 and 300 miles per charge • Proterra 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. Battery and Fuel Cell Electric Buses in California

  10. 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. Multiple Zero Emission Bus Types and Models Battery Electric Fuel Cell Electric 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 Double-Decker Bus GreenPower 240 miles per charge 478 kWh battery Standard Bus 2 OEM’s and 2 models Motor Coach 3 OEM’s and 5 models 124-200 miles per charge 135-394 kWh battery Cutaway Bus 2 OEM and 2 Models 100 miles per charge 105 kWh battery Articulated Bus 2 OEM’s and 2 models

  12. California is Home to Zero Emissions Bus Manufacturing ZEB Manufacturers Outside of CA • St. Cloud, MN Plattsburgh, NY Wilder, KY BEB, Livermore Battery, Hayward BEB, Porterville EDS, Foster City • BEB, BET, and • Battery, Lancaster FCEB, Riverside BEB, Downey Abbreviations Battery Electric Bus (BEB) Fuel Cell Electric Bus (FCEB) Battery Electric Truck (BET) Electric Drivetrain Systems (EDS) BEB, Ontario Bus repowers, Riverside

  13. 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. Statewide Zero Emission Bus Contract • Department of General Services seeking subject matter experts • Provide guidance in regards to requirements and policies that affect the procurement of electric transit buses. • Assist in developing customer survey, request for information, specifications, and solicitation • Attend team meetings (teleconference) • Participate on the Evaluation Team to evaluate bids (optional) • Announced March 21, 2018 DGS contact: Erica.SeghesioGroves@dgs.ca.gov

  15. LCFS Program Staff Proposal • Reduce carbon intensity of California transportation fuels through 2030 • Significant expansion of renewable fuel market • 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 • Board consideration April 2018 Preliminary draft LCFS proposal at https://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/092217_draftregtext.pdf

  16. Transportation Electrification SB350 • California Public Utility Commission (CPUC) • Accelerate widespread transportation electrification • CPUC approved 15 of 16 priority review projects totaling $42 million • Proposed decision on medium and heavy duty proposals (March 30, 2018) • Authorize $207 million for PG&E and $201 million for SCE for make ready installations • 700 sites for each utility, and 13,000 total trucks and buses collectively • Minimum of 15 percent of infrastructure budget to serve transit agencies • Authorize SCE to establish three new time of use rates • No demand charge for first 5 years • CPUC voting meeting on or after May 10, 2018 • SDG&E proposal review to be considered separately CPUCSB350 transportation electrification information http://www.cpuc.ca.gov/sb350te/

  17. Funding Opportunities

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

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

  20. Vouchers Improve Payback • 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 Example: Incremental Costs for Single BEB Purchase Without Electric Service Upgrades vs Conventional 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.

  21. Volkswagen Environmental Mitigation Trust • Provides about $423 million to California • Mitigate the lifetime excess NOx emissions • First public workshop in October 2017 • CARB designated as Beneficiary of the Trust on January 29, 2018 • To be fully funded in November 2017 • Continuing public process with Board consideration planned for Spring 2018 More information at https://www.arb.ca.gov/msprog/vw_info/vsi/vw-mititrust/vw-mititrust.htm

  22. VW Funds for Transit, School, and Shuttle Buses • Recommended allocation: $130 million • Supports early adoption of commercially available Class 4-8 zero-emission technologies and reduces diesel’s harmful impact on children • 2009 or older bus replacements • 50% of allocation expected to benefit disadvantaged or low-income communities https://www.arb.ca.gov/msprog/vw_info/vsi/vw-mititrust/meetings/meetings.htm

  23. Funding for Clean Mobility Options for Disadvantaged Communities • Encourages 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 More information at https://www.arb.ca.gov/msprog/aqip/ldv_pilots.htm

  24. Other Potential Funding Opportunities • AB 617 • To monitor and develop strategies to reduce community air for toxic and criteria pollutants • Focuses on mobile sources and infrastructure (DAC priority) • $250 million distributed through local air districts pursuant to Carl Moyer Program • Transit and Intercity Rail Capital Program (TIRCP) • Operating and capital assistance to reduce GHG and improve mobility (DAC 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 • Local and federal funding programs AB 617 https://ww2.arb.ca.gov/our-work/programs/community-air-protection-program-ab617 TIRCPhttp://www.dot.ca.gov/drmt/sptircp.html LCTOP http://www.dot.ca.gov/drmt/splctop.html

  25. ICT Proposed Rule Concept

  26. General Considerations of Staff Proposal • Achieve 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

  27. Proposed Rule Elements • Zero emission bus purchases • Joint regional compliance • Innovative mobility credits • Low NOx engines • Renewable fuels • Periodic Board updates • Performance based discussion

  28. Suggested Areas for Changes • Posted March 27, 2018 • Start date after 2020 • Additional time to strategize individualized ZEB technology deployment plan • Better opportunity to access funding and take advantage of new utility programs • ZEB technology viable now and need to continue deployments • Ensure opportunities to access funding consistent with normal bus purchases • Updated cost summary • Total cost of ownership and how funding can address initial costs • Eliminate cutaways from the initial requirement • What are appropriate start and/or metric thresholds to determine readiness Change summary and how to submit comments at https://arb.ca.gov/msprog/ict/meeting/mt180327/180327ictconcept.pdf

  29. Overview of December Proposed Rule Concept December 2017 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 • 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

  30. Applicability December 2017 Concept • 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 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

  31. Zero Emission Buses

  32. ZEB Phase-In Schedule December 2017 Concept • Applies at time of bus purchase (no accelerated replacement) • Deferred compliance for smaller agencies • Early purchases count towards future requirements • *Trolley buses would not be counted towards ZEB purchase requirements except when expanding the existing fleet from a 2015 baseline

  33. Projected ZEBs Due to Proposal December 2017 Concept

  34. Early ZEB Purchases Eligible for Funding December 2017 Concept • Transit fleets remain eligible for funding by acting early • Early 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)

  35. BEB Phase-In Example December 2017 Concept • Large fleet of 140 buses • Normal bus purchases 30 buses every 3 years • No early action Early purchase remain eligible for most funding programs

  36. BEB Phase-In Example December 2017 Concept • Large fleet of 140 buses • Normal bus purchases 30 buses every 3 years • Early purchase in 2019 remains eligible for funding in 2022 Early purchase remain eligible for most funding programs

  37. BEB Phase-In Example December 2017 Concept • Large fleet of 140 buses • Normal bus purchases 30 buses every 3 years • Continued purchases in 2022 remains eligible for funding in 2025 Early purchase remain eligible for most funding programs

  38. BEB Phase-In Example December 2017 Concept • Large fleet of 140 buses • Normal bus purchases 30 buses every 3 years • Continued ZEB purchases in 2025 extends funding eligibility Early purchase remain eligible for most funding programs

  39. Bonus Credits for Early Action December 2017 Concept • 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

  40. ZEB Deployment Provisions Goals December 2017 Concept • Work 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 or purchase exemption if basic criteria met • Help identify barriers for future updates

  41. Proposed ZEB Deployment Provisions December 2017 Concept • 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 ZEB 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

  42. Joint ZEB Compliance Option December 2017 Concept • Multiple transits within a region may implement a joint ZEB deployment • Jointly comply with same number of ZEBs required by each agency individually • Bus purchases jointly funded through a common MPO or transportation authority • Opportunity to optimize the bus and infrastructure investments

  43. Innovative Zero Emission Mobility Option December 2017 Concept

  44. Innovative Zero Emission Mobility Option December 2017 Concept • 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

  45. 45 Low NOx Engines and Renewable Fuels December 2017 Concept

  46. Renewable Fuels in California December 2017 Concept • Available 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

  47. Proposed Renewable Fuel Purchases December 2017 Concept • 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

  48. Low NOx Engine Availability • Currently 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

  49. Proposed Low NOx Engine Purchases December 2017 Concept • Low NOx engines when new bus purchases made if engine available • All transit agencies except depots in NOx Exempt Areas • Begins January 1, 2020 or 2 years after commercially available for bus/fuel type • Not required for mid-life engine rebuilds • Fleets remain eligible for funding if continuing to purchase low NOx engines • Early action count towards future bus engine purchases NOx Exempt Areas (shaded green)

  50. Timeline • Statewide workshops on draft regulation • Spring 2018 • Board hearing to consider the regulation • Summer 2018

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