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1 City of Riverside Zero-Emission Fleet Transition Plan October 23, 2024 City Council Meeting 2A. Fleet Transition Plan Overview1. Vehicle Replacement And Compliance Plan 2. Charging and Facility Needs Assessment 3. Total Cost of Ownership4. Deployment Options & Timelines B. Next Steps (2024) C. Appendix 1. Emission Analysis 2. Funding Opportunities 3. Next Steps (2025 and 2026) Table of Contents
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2 3The Fleet Transition Plan is designed to support the City’s sustainability objectives while meeting its diverse services operational requirements and regulatory compliance. Envision Riverside 2025 Strategic Plan elevates environmental stewardship as a top priorityMeasure SR-12: Electric Vehicle Plan and Infrastructure Measure T-19: Alternative Fuel & Vehicle Technology and InfrastructureD R I V I N G R E S U L T S F O R S U S T A I N A B I L I T Y O B J E C T I V E SAOVERVIEW: FLEET TRANSITION PLAN Full-service including electric and water utilities, refuse, police, and fire Vehicles with relatively low-mileage drive cyclesLarge and diverse fleet in terms of fuels, vehicle configurations, and parking locationsD E L I V E R I N G D I V E R S E S E R V I C E S O P E R A T I O N A L R E Q U I R E M E N T S Advanced Clean Fleet (ACF) phases out medium-to-heavy duty conventional vehicles towards zero-emission technologies.Innovative Clean Transit (ICT) requires that all public transit agencies transition vehicles to a 100% ZEV fleet by 2040.Advanced Clean Cars II rule (ACC Rule II) requires that 100% of passenger vehicle sales are ZEV beginning 2035.M A I N T A I N I N G C O M P L I A N C E W I T H E X I S T I N G A N D N E W R E G U L A T I O N S 4The Fleet Transition Plan provides the City with a foundational strategy to guide the transition towards zero-emission vehicles and to begin the next phases required for implementation. DEVELOPED A VEHICLE REPLACEMENT & COMPLIANCE APPROACHPlan to replace 308 vehicles (248 EVs and 60 ICE), leading to a 35% electric fleet composition by 2040 to comply with ACF, ICT, and ACC Rule IIIDENTIFIED CHARGING & FACILITY INFRASTRUCTURE NEEDS Vehicle charging infrastructure include 127 chargersand facility electrical upgrades for 6,450-kW in increased electric loadESTIMATED TOTAL FLEET COSTS OF OWNERSHIP, EMISSION REDUCTIONS, & FUNDING OPPORTUNITIESFleet operating costs estimated at $210M (9% reduction versus a No ZEV Procurement Scenario) over the 17-year period with total reduction in scope 1 and 2 emissions of 21,495 MTCO2e at a cost to the City of $3,411 per MTCO2e reducedPROVIDED INFRASTRUCTURE DEPLOYMENT TIMELINE OPTIONSTwo timeline options for infrastructure deployment in three-phases by either accelerating deployment for an estimated upfront cost of $1.14M (Scenario 1) v. leveraging off-site charging at a cost of $32k to delay City Hall and Utility POE (Scenario 2) AOVERVIEW: FLEET TRANSITION PLAN1234
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3 010020030040050060020242025202620272028202920302031203220332034203520362037203820392040Total Vehicle ProcurementsReplacement Analysis (All Fuel Types)ACF (Option 1 v. Option 2), ICT, and ACC Rule IIOption 1Option 25City selected to comply with the ACF Option 1 replacement schedule to drive the fleet transition per its procurement policy and avoid vehicle purchases prior to end of useful life. 515
308C A R B A C F1I C T2A C C R U L E I I3C I T Y ’ S S E L E C T E D C O M P L I A N C E P A T H W A Y S Option 1 Replacement Schedule (Selected): From 2024 to 2026, 50% of vehicles purchased are ZEVs. Starting in 2027, 100% must be ZEVs.Starting in 2026, 25% of new buses (>14,000 lbs. Gross Vehicle Weight Rating (GVWR)) are to be ZEVs and starting in 2029, 100% will be ZEVs. From 2026 to 2034, transition 50% of passenger vehicles to EV’s. Starting in 2035, 100% will be ZEVsC A R B A C F C O M P L I A N C E P A T H W A Y SNotes:1. CARB ACF: Van, Refuse Truck, Street Sweeper, MD Utility Service, MD Bucket Truck, HD Utility Service, Dump Truck, Flatbed Truck, Work Pickup Truck, Semi-Truck, HD Bucket Truck 2. ICT: Paratransit Bus 3. ACC Rule II: Passenger vehicles (Sedan, SUV, and Light-Duty Pickup Truck)4. Vehicle types with no ZEV Alternatives (apply for exemption): Vacuum Truck, Tank Truck, Construction Truck, Paint Stripper5. Exempt from applicable regulations: HD Crane and F-550 w/Fire Apparatus 1VEHICLE REPLACEMENT & COMPLIANCE PLANOption 2 Replacement Schedule: Requires that a specific share of the fleet (grouped in three categories by vehicle types) are transitioned to ZEVs each year. 6By 2040, vehicle replacements include 308 vehicles (248 EVs and 60 ICE) resulting in a gradual growth of the fleet to be 35% electric to meet all regulatory requirements. > 100 vehicles (597 total)Notes:1. Total vehicle replacements by regulatory requirements: ACF (166 w/140 EV), ICT (34 w/34 EVs), ACC Rule II (108 w/74 EV’s). 2. Category includes the number of vehicles that are stored at the following locations: Home (9), Public Utility Energy (1), Library (1), Payton Ave (1), Dalton Ave (1).261Corp Yard 11343%233Utility Ops Center 7331%103City Hall3433%< 100 vehicles (104 total)36Water Quality514%31Utility POE2065%24Airport00%% of EV’s at Site T o t a l V e h i c l e C o u n t ( 2 0 2 4 )T o t a l E V F l e e t C o m p o s i t i o n( 2 0 4 0 )1VEHICLE REPLACEMENT & COMPLIANCE PLAN# EVs13Other1323%Vehicle Locations 248701 10/9/2024
4 7By 2040, EV additions to the fleet will result in a projected increase of 6,450-kW in electric demand to be served by 127 chargers across five sites.116CORP YARD 2 37
63174kW7.2kW Single-PortE V L o a d A d d i t i o n40kW Dual-Port120kW Dual-Port300kW Cabinet (8 Ports)C h a r g e r T y p e & O u t p u t F u t u r e E V F l e e t ( 2 0 4 0 ) 45T o t a l N u m b e r o f C h a r g e r sUOC2434kW 2 23
13 73
38CITY HALL450kW
18 8
34 26POE272kW
10 5
20 15WATER QUALITY120kW
3 5
3Number of Chargers2CHARGING & FACILITY INFRASTRUCTURE NEEDS 8Through 2040, the City is estimated to incur ~$61.34M in vehicle purchase costs (before incentives) for replacements that align operational needs and regulatory requirements. Notes:1. EV incentives and rebates are excluded (Total: $3.2M). They are, however, assumed to be obtained by the City in the final total cost of ownership estimation. 2. CARB ACF: Costs include $38.9M (140 EVs) and $12.3M (26 ICE)3. ICT: Costs include $5.05M for (34 EVs) transit buses4. ACC RULE II: Costs include $3.4m (74 EVs) and $1.7M (34 ICE)$51.20M$5.05M$5.09MC A R B A C F2I C T3A C C R U L E I I4T O T A L V E H I C L E C O S T S1& R E P L A C E M E N T C O U N TICE(26)EV(140)ICE(0)EV(34)ICE(34)EV(74) 3TOTAL COSTS OF OWNERSHIP
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5 9$10.28M$9.76M$522kTotal InfrastructureTotalConstructionTotalPre-ConstructionThrough 2040, the City is estimated to incur ~$10.28M in charging infrastructure and facility upgrade costs to support the future state of its electric fleet composition.Notes:1. Infrastructure costs are at a Class 5 Level estimate: -30%/+50%T O T A L I N F R A S T R U C T U R E C O S T S1B Y S I T E$5.16M$328k$3.09M$679k$1.02MC O R P Y A R DU O CC I T Y H A L LP O E W A T E R Q U A L I T Y $1,582 per kW$1,270 per kW$2,347 per kW$2,496 per kW$2,733 per kW3TOTAL COSTS OF OWNERSHIP 10The Fleet Transition Plan is estimated to cost $210.1M, a $21M (9%) cost savings versus a status-quo scenario with no ZEV procurement.Cost savings are derived primarily from three factors, including: EVs having maintenance costs 40% to 60% lower than ICE vehicles, forecasted declines in costs to EV batteries and powertrain, and increases in costs for ICE purchases and fuel (gasoline and diesel). $210.1M$231.0M$0$50$100$150$200$250Total Cost Comparison ZEV Fleet Transition v. No ZEV Procurement Scenario (millions)ZEV Fleet TransitionNo ZEV Procurement$114.0M(non-replacement fleet costs )$114.0M(non-replacement fleet costs) $- $2 $4 $6 $8 $10 $12 $14 $16 $1820242025202620272028202920302031203220332034203520362037203820392040YearZEV Fleet Transition Total Annual Costs (millions)Electric Vehicle ICE VehicleNon-Replacement Fleet Notes:1. $96.1M in incremental fleet costs (ZEV Fleet Transition) includes vehicle purchase ($61.34M), infrastructure ($10.28M), vehicle O&M ($27.68M), minus rebates ($3.20M)2. $117M in incremental fleet costs (No ZEV Procurement) includes vehicle purchase ($63.70M) and vehicle O&M ($53.30M) 3. $114M in non-replacement fleet costs are for O&M of vehicles in the fleet that are not scheduled to be replaced or transitioned during the study period4. EV incentives and rebates include $2.30M for CARB-ACF regulated vehicles and $916.50k for ICT, ACC Rule, and Exempt vehicles$96.1M(incremental fleet costs)$117.0M(incremental fleet costs)Total Costs of Fleet Ownership ($M)Total Annual Costs of Fleet Ownership ($M)3TOTAL COSTS OF OWNERSHIP 10/9/2024
6 11Scenario 1 accelerates infrastructure deployment with upfront costs of $1.14M v. Scenario 2 that delays City Hall and Utility POE by leveraging off-site charging at a cost of $32k4DEPLOYMENT TIMELINESBoth scenarios envision charging equipment (47% of total infrastructure costs) to be installed on a “just-in-time” basis (i.e., add chargers in alignment with EV additions). In scenario 2, the deployment delay is enabled by the relatively low # of EVs that are planned over the first half of the transition period for City Hall (10 EVs, from 2024 to 2031) and Utility POE (5 EVs, from 2026 to 2034). S C E N A R I O # 1 ( D E F A U L T )T o t a l C o s t : $ 1 . 1 4 M ( C i t y H a l l - $ 7 1 1 k , P O E - $ 4 4 3 k )AS C E N A R I O # 2 ( O F F - S I T E C H A R G I N G )T o t a l C o s t : $ 3 2 k ( C i t y H a l l - $ 1 7 . 9 8 k , P O E - $ 1 3 . 9 2 k )20252026B2027 -2040 202520262027 -2040 E203420352036 -2039DCDC202520262028 -2040 202620272030 -2040 I N F R A S T R U C T U R E P H A S E B Y C O M M E N C E M T Y E A R203120322033 -2040 203420352036 -2040 AC O R P Y A R DBU O CCC I T Y H A L L DU T I L I T Y P O E EW A T E R Q U A L I T YV E H I C L E S I T E S +CHARGING EQUIPMENTPRE-CONSTRUCTIONCONSTRUCTION I N F R A S T R U C T U R E P H A S E O F F - S I T E C H A R G I N G L O C A T I O N S37 locations, 146 DCFC ports within a 10-mile radius to City Hall and Utility POE 12Evolution of the City’s Fleet Transition Plan – Immediate Next Steps EVOLUTION OF THE ZEV FLEET TRANSITION PLANPROCUREMENT FACILITATIONGRANTS & TAX CREDITSWORKFORCE REQUIREMENTSMANAGED CHARGING STRATEGY RELIABILITY AND RESILIENCY STRATEGY202420252026KEY NEXT STEPSFOCUS AREA2024 Develop grant application to obtain financing through the state funded EnergIIZEprogram.Grants & Tax CreditsLeverage federal tax credits (Commercial Clean Vehicle) and state reimbursement grants (HVIP)for vehicle purchases.Monitor the expected release of the next round of funding for the federal Clean Heavy-Duty Vehiclesand state funded Charging Infrastructure for Government Fleetsprograms.Procure vehicles that are scheduled to be replaced in 2024.Procurement Define vehicle, charging functionalities, and site development requirements to support development of an RFP for engineering, procurement, and construction (EPC) of sites included in the first phase of deployment (i.e., Scenario 1- Corp Yard, UOC, and City Hall or Scenario 2– Corp Yard and UOC).BNEXT STEPS – 2024 10/9/2024
7 Environmental StewardshipGoal 4.6: Implement the requisite measures to achieve citywide carbon neutrality no later than 2040.Cross-Cutting ThreadsSTRATEGIC PLAN ALIGNMENTCommunity Trust Equity
Fiscal Responsibility
Innovation
Sustainability & Resiliency
That the City Council receive and file the Zero-Emission Fleet Transition Plan developed by Black & Veatch Corporation.RECOMMENDATIONS 10/9/2024
8 APPENDIX
05001,0001,5002,0002,5003,00020242025202620272028202920302031203220332034203520362037203820392040Total Annual Emission Reduction (MTCO2e)YearTotal Annual Emissions Savings2024 to 2040 (MTCO2e)ZEV Fleet Transition16Through 2040, the growth of the electric fleet will result in an estimated total scope 1 and 2 emission reductions of 21,495.1MTCO2e at a cost to the City of $3,411 per MTCO2e reduced.Notes:1. ICE vehicle emissions include tailpipe emissions only (combustion of Gas and CNG)2. EV “emissions” includes GHG emissions intensity of energy from the grid used to charge EV3. Electricity emissions factors forecasted per RPU provided Annual emission factors for electricity used for EV charging from RPU Integrated Resource Plan)21,495.1 05,00010,00015,00020,00025,000Total Emission Reductions (MTCO2e)Total Emissions Savings 2024 to 2040 (MTCO2e)ZEV Fleet TransitionTotal emissions reductions include scope 1 (i.e., tailpipe emissions) and scope 2 (derived from RPU as power generation source).CEMISSION ANALYSIS 10/9/2024
9 Notes:1. Funding opportunities prioritized based on funding eligibility, magnitude, mechanism, availability, application and administrative burden.2. Black & Veatch reviewed 32 opportunities (Federal – 8 , State – 22, Utility – 2) leading to a selection of six high-priority opportunities (Federal – 3, State – 3) There are six high-priority federal and state funding opportunities for funding the Fleet Transition Plan, including tax credits, competitive, and reimbursement grants / vouchers 17 Federal Tax Credits (2 programs)Tax credits ranging between 30% to 40% to offset vehicle costs (Commercial Clean Vehicle and Alternative) and charging infrastructure (Alternative Fuel Vehicle Refueling Property Credit).Clean Heavy-Duty Vehicles Grant ProgramCompetitive grants for up to $60M to replace existing heavy-duty vehicles with zero-emission vehicles and infrastructure, and to train and develop workers to support the fleet. BAFederal Funding:
Charging Infrastructure for Government Fleets Competitive grants ranging from $500k to $6M, or up to 70% of project costs, to fund charging infrastructure for municipalities. Pending release of next round of funding. EEnergIIZE Commercial Vehicles Reimbursement grants ranging between 50% to 70% of equipment costs to incentivize deployment of zero-emission vehicle technology. DHybrid and Zero-Emission Truck and Bus Voucher Incentive ProjectReimbursement vouchers ranging from $20k to $240k to cover vehicle purchases from a certified dealer. CState Funding: CFUNDING OPPORTUNITIES 18Evolution of the City’s Fleet Transition Plan (2025) KEY NEXT STEPSFOCUS AREA2025Continue to monitor and update availability of funding opportunities. Grants & Tax CreditsContinue to develop grant applications and leverage available tax credits, including the Alternative Fuel Vehicle Refueling to support financing infrastructure costs that are anticipated to be incurred in 2025. Procure vehicles that are scheduled to be replaced in 2025.Procurement Release and award EPC RFP for the first phase of infrastructure deployment.Prepare EPC RFP for second phase of deployment (i.e., Scenario 1– Utility POE, Scenario 2– NA). Perform skills gap analysis and develop training program strategy, partners, resources, and estimated costs to design a comprehensive workforce development strategy. Workforce Evaluate and develop managed charging strategies for fleet and electric load optimization.Managed Charging Develop a city-wide reliability and resiliency plan in collaboration with Riverside Public Utilities, community, and key stakeholders. Reliability & Resiliency CNEXT STEPS – 2025 10/9/2024
10 19Evolution of the City’s Fleet Transition Plan (2026) KEY NEXT STEPSFOCUS AREA2026Continue to monitor and update availability of funding opportunities.Grants & Tax CreditsContinue to develop grant applications and leverage available tax credits.Procure vehicles that are scheduled to be replaced in 2026.Procurement Release and award EPC RFP for the second phase of infrastructure deployment (i.e., Scenario 1– Utility POE, Scenario 2– NA).Begin implementation of the workforce development strategy to support the new EVs and related infrastructure that is scheduled to be completed this year. Workforce Begin to implement, monitor, and update managed charging strategy.Managed Charging Begin implementation of the city-wide reliability and resiliency plan.Reliability & Resiliency CNEXT STEPS – 2026 PROJECT DIRECTORHeather DonaldsonManaging Director, Strategic [email protected](916) 693-2835PROJECT MANAGEROmar El ShalPrincipal Consultant, Strategic [email protected](310) 703-3188ACCOUNT EXECUTIVEMayda BandyClient Director, State and Local [email protected] 10/9/2024
11 Performance DisclosureIn conducting our analysis and in forming an opinion of the projection of future operations summarized in this report, B&V has made certain assumptions with respect to conditions, events, and circumstances that may occur in the future. This methodology utilized by B&V in performing the analysis follows generally accepted practices for such projections. Such assumptions and methodologies are summarized in this report and are reasonable and appropriate for the purpose for which they are used; however, actual results may differ materially from those projected, as influenced by the conditions, events, and circumstances that actually occur. Such factors may include, but are not limited to, the ability to execute the capital improvement program as scheduled and within budget, regional climate and weather conditions affecting demand and supply, and adverse legislative and regulatory actions, or legal decisions (including but not limited to environmental law and regulations) affecting the ability of B&V’s client to operate its system. Readers of this report are advised that any projected or forecasted financial, operating, performance, or strategy merely reflects the reasonable judgment of B&V at the time of the preparation of such information and is based on a number of factors and circumstances beyond B&V’s control. Accordingly, no assurances are made that the projections or forecasts will be consistent with actual results or performances. Use of this report will constitute agreement by the user that (i) there is no warranty, express or implied, in this report, (ii) theuser accepts the sole risk of any such use, and (iii) the user waives any claim for damages of any kind against B&V.