Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer Budget and Audit Committee Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00097 February 1, 2022 Discussion Item 06
Title: Fleet Electrification Update
Location: Citywide
Recommendation: Receive and file.
Contact: Alison Kerstetter, Program Specialist, (916) 808-1163, [email protected]
; Jenna Hahn, Administrative Analyst, (916) 808-5016,
[email protected]; Mark Stevens, Fleet Manager, (916) 808-5869, [email protected], Department of Public Works
Presenter: Mark Stevens (916) 808-5869, [email protected] , Department of
Public Works
Attachments:
1-Description/Analysis
File ID: 2022-00097 Discussion Item 06
February 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: The City Council requested a discussion on the City’s fleet electrification policies with the Budget and Audit Committee. This item will review how the Fleet Division is implementing the City Council’s Fleet Sustainability Policy concerning procurement commitments for alternative fueled and zero emission vehicles. The presentation will include an update of the purchasing progress for zero emission vehicles. It will also detail the challenges experienced with providing for necessary charging infrastructure, determining when it becomes appropriate to invest in emerging technology regarding electric medium and heavy- duty vehicles, and the City’s efforts in partnering with local companies, the California Mobility Center, and the Sacramento Municipal Utilities District (SMUD) toward advancing these efforts.
Policy Considerations: The City’s Electric Vehicle (EV) Strategy established goals for electric vehicle procurement for City fleet as well as promoting EV technologies for medium- and heavy-duty vehicles. In December 2017, the City Council adopted an updated Fleet Sustainability Policy (Resolution No. 2017-0478) to include a Zero Emission Vehicle (ZEV) First commitment and the pledge to purchase a minimum of 50% of annual light-duty Fleet purchases to be ZEV by 2018 and 75% by 2020.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378(b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines Section 15060(c)(3)).
Sustainability: The purchases discussed in this presentation are consistent with the updated Fleet Sustainability Policy adopted by City Council on December 12, 2017 (Resolution No. 2017-0478).
Commission/Committee Action: None
Rationale for Recommendation: None
Financial Considerations: The City may need to consider realignment of funding to ensure the Fleet Sustainability Policy Zero Emissions Fleet goals can be obtained through vehicle purchases as well as constructing charging infrastructure.
File ID: 2022-00097 Discussion Item 06
February 1, 2022
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City of Sacramento
Local Business Enterprise (LBE): None
Background: The City’s Fleet Division is among the nation’s leaders in exploring green fleet technologies, and this investment has reaped substantial benefits both economically and environmentally. While purchase prices may be higher, the City’s fleet electric vehicles have demonstrated substantial savings in maintenance and fuel costs. As an early adopter, the City was able to take advantage of vehicle rebates and charging infrastructure rebates and reinvest those savings to support continued EV investments. At this time, however, rebates and incentives for fleets are much more limited as most incentives support public-facing infrastructure. Some of the challenges to continuing to successfully implement the City’s Fleet Sustainability Policy include the following:
• Higher costs associated with electric vehicle purchase with fleet vehicle rebates becoming more limited, exacerbated by current supply chain issues • Some concern from some City operational units about the ability of EVs to meet certain operational needs
• Need for substantial investment in fleet charging infrastructure as the number of replacement vehicles that are EVs exceeds the current EV charging infrastructure at City fleet facilities
• Significant costs associated with medium and heavy duty EVs, as well as continuing to advance technology and opportunities in these areas