Innovative Clean TransitWorkshop to Discuss Regulatory Proposal

June 13, 2018Sacramento, California

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General Considerations of Staff ProposalAchieve 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

Enhance transit services and encourage innovative mobility options

Provide environmental benefits, especially in disadvantaged communities

Ensure requirements are technologically and financially feasible

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Transit buses suitable for advanced technologieso Operate in congested areas where pollution is a problem o Centrally located and fueledo Government support

Experiences aid other fleets in deploying heavy-duty zero emission vehicles

Transit Buses Leading the Way

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Zero Emission Buses in California(132 in operation and 655 on order, awarded or planned as of May 2018)

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Leading the Way to Zero Emissions

12 transit agencies committed to making full transition to ZEBs

Represent about 40 percent of all buses in California

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Agency Total Buses All ZEB TargetART 82 2020Antelope Valley 77 2018Foothill Transit 373 2030LA Metro 2,452 2030LA DOT 357 2030Porterville Transit 20 2025SF MTA 620* 2035San Joaquin RTD 111 2025SamTrans 369 2033Santa Clara VTA 485 2033Santa Cruz Metro 98 2040Santa Monica BBB 200 2030Total 5,244

* 327 trolley buses not included in total

Low Carbon Fuel Standard AmendmentsSignificant expansion of renewable fuel market◦ Reduce carbon intensity (CI) in transportation fuels through 2030 and maintain this target for post 2030◦ Recognizes higher efficiency in transit, short haul, and vocational applications◦ First Board meeting April 2018◦ Final decision later this year

Transit agencies using lower CI fuels or electricity can opt into program to receive credits◦ First in line to receive credits

◦ Electric buses or CNG dispensing facilities◦ Proposed first in line to receive credits

◦ Hydrogen dispensing facilities

Credit value about $10,000 per year/bus assuming 40,000 miles/yr at $100 per credit for a battery electric bus (BEB) before proposed amendments

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Information on the LCFS program and 2018 Amendments https://arb.ca.gov/fuels/lcfs/lcfs.htmProgram overview presentation: https://www.arb.ca.gov/msprog/bus/04072016.pdfAccount registration form: https://ssl.arb.ca.gov/LCFSRT/Anonymous/Account%20Registration%20Form.pdf

SB350 Transportation ElectrificationCalifornia Public Utility Commission (CPUC): http://www.cpuc.ca.gov/sb350te

Accelerate widespread transportation electrification

CPUC previously approved 15 of 16 priority review projects totaling $42 million

Approved standard review projects for PG&E and SCE on May 31, 2018◦ SCE approved for $343 million◦ PG&E approved for $236 million◦ Rebates up to 50% of the EVSE costs for transit buses and school buses◦ Similar rebates for other medium duty and heavy duty vehicles in DACs

$150 million SDG&E proposal to be considered separately

CPUC ZEV Rate Design Forum (http://www.cpuc.ca.gov/energy/electricrates/)

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Revised Proposed Decision: May 25, 2018 http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M214/K986/214986410.pdf

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SAE Charging StandardsThe Society of Automotive Engineers (SAE) has published a standard for three-phase AC charging, J3068

Designed for high power AC charging up to 133 kW at 480VAC, 166 kW at 600VAC

Can be coupled with a DC fast charger in a CCS Type 2 plug

Charging standards for high power wireless and overhead charging under development

https://www.sae.org/news/press-room/2018/04/sae-international-releases-new-specification-sae-j3068-for-charging-of-medium-and-heavy-duty-electric-vehicles

Potential Statewide ZEB ProcurementDepartment of General Service is planning on a statewide ZEB procurement for transit buses

Benefits◦ Saves transit agencies time, money and procurement planning ◦ Provides further market certainty◦ Provides a possible lower price

Timeline◦ Request for Proposal: Summer 2018◦ Contract finalization: Winter 2018/2019◦ Contract valid period: 2-5 years

Note: School bus statewide procurement planned in the future. A timeline has not been identified yet.

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Recap of December 2017 ProposalDraft proposal presented at the Dec 15, 2017 workshop https://arb.ca.gov/msprog/ict/meeting.htmImplementation starting 2020All buses with a GVWR over 14,000 lbsZero emission bus purchases◦ Joint compliance option◦ Innovative zero emission mobility option◦ Performance based concept◦ 2023 start date for small transit agencies◦ Recognize early action

Low NOx engine purchasesUse of renewable fuels for large transit agencies

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Summary of Current ProposalApplicability Zero emission bus (ZEB) rollout plan ZEB purchase requirement◦ Waiver of initial requirements if early ZEB purchases◦ Zero emission mobility option◦ Bonus credits for early action◦ Provisions for deferral of ZEB purchases◦ Zero emission bus joint group option

Use of low NOx enginesUse of renewable fuelsReporting

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New

New

Applicability and Fleet SizeThe proposed regulation applies to ◦ Any public transit agency that owns, operates, leases, rents, or contracts with another entity to

operate affected buses in California◦ A bus with a GVWR of over 14,000 lbs., but does not include trolley buses

The proposed regulation does not apply to◦ A vehicle that operates on rail or with an overhead catenary system◦ A bus that belongs to a correctional facility, airport, college or university, national park, tour bus

service, or a private entity that provide a shuttle service solely for patrons of their organizations◦ A school bus

Fleet size is total active buses in the fleet on December 31, 2017◦ Includes all buses within the scope of the regulation◦ Large fleet has 100 or more active buses◦ Small fleet has less than 100 buses

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Zero Emission Bus (ZEB) Rollout PlanEach transit agency is required to submit a transit board approved ZEB purchase and deployment plan◦ June 30, 2020 for large transit agencies◦ June 30, 2023 for a small transit agencies.

Key plan elements◦ Goal of full transition to zero-emission technologies by 2040 or earlier.◦ Identify the type of zero-emission technology a transit agency is planning to deploy◦ Describe build out of charging and fueling infrastructure◦ Identify the planned schedule for bus purchases◦ Describe the training schedule for zero-emission bus operators and technicians◦ Identify potential funding sources

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New

ZEB Purchase RequirementsApplies to annual purchase of new buses◦ Purchase begins with the date a Notice to Proceed (NTP) is issued to the bus manufacturer to

begin production and is completed upon delivery of the bus◦ All buses must be delivered within 2 years after the issuance of NTP

Cutaway buses, motor coaches, and articulated buses will be excluded until January 1, 2026 and will continue to be excluded until◦ The applicable bus type has passed and obtained a Altoona bus testing report◦ If purchased, ZEBs will still be counted towards compliance

A retired or decommissioned ZEB must be replaced with a ZEB

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ZEB Purchase Schedule

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Calendar Year ZEB Percentage of New Bus PurchasesLarge Transit Agency Small Transit Agency

2023* 25% -2024* 25% -2025 25% -2026 50% 25%2027 50% 25%2028 50% 25%

2029 and after 100% 100%* Potential waiver for early compliance

Waiver for Early ComplianceThe 2023 ZEB purchase requirement would be waived if California transit agencies collectively have purchased 1000 or more ZEBs by December 31, 2020

The 2024 ZEB purchase requirement would be waived a second time if California transit agencies collectively have purchased 1,150 or more ZEBs by December 31, 2021

Need additional details on how many buses to be ordered ◦ 132 in service as of May 2018◦ 655 in service, awarded or planned◦ New purchases expected with available funding

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New

Zero Emission Mobility Program OptionMay be used in lieu of ZEB purchasesEligible if utilizing bicycles, van pools, micro transit or other zero emission vehicles with a GVWR of 14,000 lbs or less◦ Must be operated directly or through a contractor with the transit agency◦ Must track and record the annual zero-emission passenger miles for each vehicle

Zero emission passenger miles equivalent to having one ZEB in the fleet◦ 320,000 zero emission passenger miles/year for a large transit agency◦ 180,000 zero emission passenger miles/year for a small transit agency

The number of equivalent ZEBs may be counted towards compliance in the next compliance yearIf the program is downsized or terminated, the transit agency shall make up deferred ZEB purchases in the next bus purchase

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ZEB Bonus CreditsA transit agency is eligible to receive bonus credits for each ZEB placed in revenue service under one of the following conditions:◦ 2 bonus credits for each fuel cell electric bus (FCEB) placed in service on or before

12/31/2017 and remained in service as of Jan 1/1/2018◦ 1 bonus credit for each FCEB placed in service between 1/1/2018 and 1/1/2023◦ 1 bonus credit for each battery electric bus (BEB) placed in service on or before

12/31/2017 and remained in service as of 1/1/2018

Each bonus credit is counted the same as a ZEB in the fleet◦ Expires 12/31/2028◦ Are not transferable

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Compliance Determination By December 31 of each year, a transit agency shall achieve the ZEB purchase requirements by counting any of the following ◦ New ZEB purchases that are on order (as previously defined)◦ ZEBs that are in the fleet (including used buses and conversions) ◦ ZEB bonus credits◦ Credits from an optional zero-emission mobility program

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Deferral of ZEB PurchaseA transit agency may submit a request for an extension or exemption for circumstances beyond the transit agency’s control

A request for an extension may be submitted for any of the following conditions:◦ Delay in the bus delivery is caused by the bus manufacturer◦ Delay in bus delivery is caused by setback of infrastructure construction schedule◦ When an available depot charging BEB cannot meet a transit agency’s daily mileage needs

A request for exemption may be submitted when a required zero-emission bus type is not available for purchase◦ Has not passed Altoona bus testing◦ Cannot meet Americans with Disabilities Act requirements

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Optional Joint Zero Emission Bus GroupMay pool resources to comply with zero-emission bus purchase requirement collectively◦ Share the same Metropolitan Planning Organization, or◦ Transportation Planning Agency, or◦ Be located within the same Air Basin

Request for Joint Group must be submitted to the Executive Officer for approvalA bonus credit owned by a participating transit agency may be used towards the Joint Group’s compliance obligationCompliance determination◦ The total annual ZEB purchased collectively must equal the sum of the total annual ZEBs

required to purchased by each participating transit agency

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Use of Low NOx EnginesStarting January 1, 2020, small and large transit agencies must purchase low NOx engines when new conventional bus purchases are made ◦ Applies to engines that have been commercially available for at least two years◦ The engine must be certified to the lowest level of NOx emissions that is suitable for the bus

and engine fuel type being purchased (Does not require switching fuel types)◦ Does not apply to buses that are dispatched from areas defined as NOx exempt areas

“NOx Exempt Areas” means the following counties: ◦ Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, Eastern Kern (portion of Kern County within the

Eastern Kern Air Pollution Control District), Glenn, Humboldt, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Monterey, Nevada, Northern Sonoma, Plumas, San Benito, San Luis Obispo, Santa Barbara, Santa Cruz, Shasta, Sierra, Siskiyou, Northern Sutter (portion of Sutter County that is north of the line that extends from the south east corner of Colusa County to the southwest corner of Yuba County), the portion of El Dorado that is within the Lake Tahoe Air Basin, the portion of Placer that is East of Highway 89 or within the Lake Tahoe Air Basin, Trinity, Tehama, Tuolumne, and Yuba

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Use of Renewable FuelsStarting January 1, 2020, large transit agencies will be required to purchase renewable fuels for diesel and CNG buses when fuel contracts are renewed to support existing programsTransit agencies’ use of RD and RNG will not produce additional emission reduction outside of the LCFS program. Therefore, the proposed ICT regulation does not claim the emission reduction benefit for the use of renewable since it is not the primary driver for this fuel production.

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ReportingEvery transit agency, regardless the size, must report annually starting in 2021 for prior year◦ Bus purchases◦ Bus fleet information◦ Vehicle, engine and powertrain…

◦ Fuel purchases for large transit agencies

The initial reporting March 31, 2021◦ Fleet size based on all active buses in the fleet as of January 1, 2018◦ Number of ZEBs in the fleet and on order◦ Low NOx engine purchases

The annual reporting requirements sunsets in 2050 for all transit agencies

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Estimated NOx Emission Reductions

0

100

200

300

400

500

600

700

800

900

1,000

2020 2025 2030 2035 2040

Tailp

ipe

NO

x Em

issi

on(to

ns p

er y

ear)

Current Conditions Proposed ICT Regulation

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Estimated PM2.5 Emission Reductions

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0.0

0.5

1.0

1.5

2.0

2.5

2020 2025 2030 2035 2040

Tailp

ipe

PM2.

5Em

issi

on(to

ns p

er y

ear)

Current Conditions Proposed ICT Regulation

Estimated GHG Emission Reductions

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0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2020 2025 2030 2035 2040

WTW

GH

G E

mis

sion

(met

ric to

ns p

er y

ear)

Current Conditions Proposed ICT Regulation

Timeline Comments on June 2018 proposal◦ Comments submitted to:

https://www.arb.ca.gov/lispub/comm2/bcsubform.php?listname=cleantransit-ws&comm_period=1

◦ Comments requested by July 2, 2018◦ Docket open through July 23, 2018

Board hearing to consider the regulation◦ First hearing: September 2018◦ Second hearing: Winter 2018/2019◦ Anticipated rule effective date: January 1, 2020

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CARB Funding Plan – VouchersHybrid 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

Workshop on FY 2018-19 Funding Plan for Clean Transportation Incentives on June 15, 2018 ◦ Discussion document posted at https://www.arb.ca.gov/msprog/aqip/fundplan/060118_discussion_doc.pdf

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Approved FY 2017-18 Funding Plan https://www.arb.ca.gov/msprog/aqip/fundplan/proposed_1718_funding_plan_final.pdfJoin the AQIP list serve at https://public.govdelivery.com/accounts/CARB/subscriber/new?topic_id=aqip

VW Mitigation Funds for Transit, School, and Shuttle BusesAllocation approved on May 25, 2018: $130 million

50% of allocation expected to benefit disadvantaged or low-income communities

No more than 50% in any category

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Transit Bus School Bus Shuttle BusBattery: Up to $180,000*Fuel Cell: Up to $400,000* Battery: Up to $400,000* Battery: Up to $100,000*

* Not to exceed 75 percent for non-government owned or 100 percent for government owned

https://www.arb.ca.gov/msprog/vw_info/vsi/vw-mititrust/meetings/meetings.htm

Other Funding OpportunitiesAB 617 ◦ To monitor community air for toxic and criteria pollutants and develop strategies to reduce them◦ Focuses on mobile sources and infrastructure. DAC has priority◦ $250 million distributed through local air districts pursuant to Moyer Program

Transit and Intercity Rail Capital Program (TIRCP)◦ To modernize intercity, commuter, urban rail, bus and ferry transit systems

Low Carbon Transit Operations Program (LCTOP)◦ Operating and capital assistance for transits to reduce GHG and improve mobility. DAC has priority◦ Five percent of the annual auction proceeds in the GGRF

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AB 617 https://ww2.arb.ca.gov/our-work/programs/community-air-protection-program-ab617TIRCP http://www.dot.ca.gov/drmt/sptircp.htmlLCTOP http://www.dot.ca.gov/drmt/splctop.html

Contact Information Yachun Chow, Manager – Zero Emission Truck and Bus section◦ yachun.chow@arb.ca.gov , (916) 322-7450

Shirin Barfjani, Lead Staff – Innovative Clean Transit◦ shirin.barfjani@arb.ca.gov , (916) 445-6017

Innovative Clean Transit https://arb.ca.gov/msprog/ict/ict.htm

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