Meeting_Body
REVISED
REGULAR BOARD MEETING
JULY 27, 2017
Preamble
Motion by:
DIRECTORS BONIN, GARCETTI, NAJARIAN, HAHN and SOLIS
AS AMENDED BY SOLIS, KUEHL and BARGER
FRIENDLY AMENDMENT BY FASANA
July 27, 2017
Strategic Plan for Metro’s Transition to Zero Emission Buses
LA Metro has developed a comprehensive plan to deliver a complete transition to zero emission electric buses by 2030. The transition plan is contingent on two primary factors: continuous advancements in electric bus technology (which must increase range, reduce bus weights, reduce charging times, extend battery life cycles), as well as a drop in prices as the technology develops.
As electric bus technology continues to advance, our electric grid is becoming cleaner by gradually eliminating coal from our energy portfolio and replacing it with renewable sources. A full transition to electric buses coupled with renewable energy sources promises mobility with significantly lower environmental impacts from this form of transportation.
In order to maintain our bus fleet in a state of good repair, Metro plans to continue replacing its aging bus fleet at approximately 200 buses per year. With firm local hiring requirements in Metro bus procurement, routine bus procurement presents a recurring opportunity that bolsters our local labor force in perpetuity.
In 2012, Metro’s U.S. Employment Plan resulted in the award of an $890 million contract to Kinkisharyo, a factory in Los Angeles County, and 404 quality railcar manufacturing jobs. Similarly, Metro can leverage recurring bus replacements to bolster labor throughout Los Angeles County
Metro plans to spend nearly one billion dollars on bus procurements in the next ten years That level of investment, coupled with a transition to all electric buses, presents an opportunity for LA County to demonstrate leadership on combating climate change, and can make Los Angeles the central marketplace for new electric bus technology: a County rich with quality manufacturing jobs rooted in technologies that provide mobility, sustain a healthy environment and create career paths in clean energy technologies.
Subject
SUBJECT: MOTION BY BONIN, GARCETTI, NAJARIAN, HAHN
AND SOLIS AS AMENDED BY SOLIS, KUEHL AND
BARGER
heading
RECOMMENDATION
Title
WE THEREFORE MOVE that the Board:
A. ENDORSE the Strategic Plan for Metro’s Transition to Zero Emission Buses;
B. DIRECT the CEO to create a zero emission bus infrastructure working group comprised of Metro staff, federal and state regulators and local utility companies to track market availability and to cultivate ongoing collaboration among stakeholders. The working group will monitor market rates for emerging zero emission bus technology to support Metro’s 2030 transition plan:
1. Working group to report to the Board annually with the latest technology innovations to support the cost/benefit analysis of fleet conversion
2. MTA to host an industry forum to solicit innovative solutions to delivering the 2030 plan;
C. AMEND the Metro federal legislative plan to advocate for local jobs as a critical factor in the evaluation criteria of MTA procurements; and
D. DEVELOP an equity threshold consistent with Title VI regulations for priority deployment of electric buses in underserved communities.
FURTHER MOVE that the Board direct staff to:
A. As part of establishing a working group:
1. EXPAND the invitation to regional air quality regulators (e.g. South Coast Air Quality Management District), the American Public Transportation Association and California Transit;
2. EXAMINE and TRACK vehicle technology and performance, energy production and pricing, infrastructure needs and life-cycle analysis and creative funding opportunities.
B. COORDINATE with the County of Los Angeles to explore opportunities to develop a countywide incentive structure to promote and attract more companies to manufacture, assemble and produce zero-emission transit vehicles and related technologies and infrastructure in Los Angeles County;
C. Widely PROMOTE and ENCOURAGE municipal transit agencies/operators to participate in the established process by which to co-procure (“piggyback procurement” provisions) zero-emission transit vehicles;
D. ENSURE that MTA maintains the flexibility to explore the best available technologies that contributes to zero-emissions and/or net-negative emissions in the Los Angeles County public transit sector.
FRIENDLY AMENDMENT BY FASANA that staff report back to the board with a timeline and any commitments by parties before we undertake our next bus purchase and answers to the following questions:
A. Will electric buses and their batteries deliver the guaranteed range and service?
B. Can municipal and electric utilities timely invest in the grid in order to power electric buses?
C. Which strategies will maximize Metro's ability to receive cap and trade credits?
D. How and when can charging infrastructure be deployed at our bus divisions? More importantly, how will such infrastructure be paid for?
E. Why is Metro's role critical for the adoption of low NOX engines in the trucking industry? What assurances do we have that this will take place when Metro has operated cleaner engines since the 1990s without adoption of these technologies by the trucking industry?
F. What are the resiliency impacts to our service if electricity or natural gas service is disrupted? What is our back-up plan?
G. Metro can intervene in regulatory proceedings at the California Public Utilities Commission for investor owned utilities regarding transportation electrification and equivalent natural gas proceedings as appropriate. Metro needs to assess the current regulatory schedule for such proceedings, develop advocacy position, and indicate that our adoption of electrification may be affected if electric transportation infrastructure is funded by shareholders, recovered through rates, and implemented on a timely basis.
H. Conversely, how will Metro undertake the capital investments directly? Foothill Transit has intervened in the active proceeding. Antelope Valley and other providers are engaged. Metro needs to be more actively engaged and needs to report back to our Board on what is at stake. In SCE's service area, demand charges make the operating costs of electric buses more costly than natural gas vehicles. Are we working to influence changes to the rate schedules?
I. Can RNG be adopted without direct Metro involvement by substituting RNG for natural gas purchased out of state? We should participate in any state framework that could create linkages between Metro's adoption of RNG and RNG implementation by the trucking industry.