Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
JUNE 17, 2021
Subject
SUBJECT: CHARGING INFRASTRUCTURE LIFE OF PROJECT BUDGET ADOPTION
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
A. APPROVE Life of Project (LOP) budget of $50.0M commencing FY22 for Phase 1 for the Charging Infrastructure Program alongside the J Line (Silver) supporting the Zero Emission Bus Program;
B. APPROVE amending the FY22 Budget for $34.0M for charging infrastructure; and
C. CONSIDER finding that authorization of the use of alternative delivery methods pursuant to Public Utilities Code Section 130242 will achieve integration of design, project works, and other components in an efficient manner at Metro bus facilities.
(REQUIRES 2/3 VOTE OF THE BOARD)
Issue
ISSUE
In April 2016, Metro’s Board of Directors passed a motion to convert Metro’s bus operations from CNG to Zero Emissions by 2030. Subsequently, in December 2018 the California Air Resources Board (CARB) issued the Innovative Clean Transit (ICT) regulation which requires all California public transit agencies to transition from conventional fueled buses to zero emission buses by 2040. Given the adoption of the Board motion and CARB regulation, it is critical that Metro adopt procurement and installation plans that commit funding and personnel to deliver ZEB services by 2030.
The 2030 ZEB conversion goal is desired to expedite the clean air goals for Los Angeles County. This reduces the carbon impacts along the services routes where Battery Electric Buses (BEB) can be provided. BEBs operate at noticeably lower decibel level than comparable CNG buses which results in reduced noise levels particularly benefitting residential areas. Ultimately the conversion to ZEBs provides reduced noise levels and improves air quality where Metro provides its BEB services.
In March 2021, staff presented the ZEB Rollout Plan (item 2020-0636), which demonstrated a phased implementation plan for the Battery Electric Buses to meet a 2030 ZEB conversion goal. With this goal, bus deliveries and expenditures are compressed resulting in expenditure demands exceeding available constrained funding sources. Additionally, accelerated bus deliveries may exceed fleet needs starting 2027 and beyond. To mitigate the potential implications of the Rollout plan, early adoption of the recommendations are essential to reduce potential delay risks due to limited budget allocations, constrained funding, limited personnel to manage the work, and long construction lead times.
Background
BACKGROUND
Metro currently operates a fleet of approximately 2,400 CNG buses of various lengths from ten (10) divisions. To transition to 100% Zero Emissions Bus operations Metro will have to address several challenges.
Charging Infrastructure and Utility Upgrades
Overnight charging at Metro Divisions and en-route charging installations are needed to successfully deploy Battery Electric Bus services by 2030. Each of Metro’s divisions will need to be upgraded to provide the anticipated power levels. To optimize available power and minimize the scale of the required upgrades, staff and its consultants are modeling numerous charging strategies to reduce peak demand and maintain acceptable service levels. It is anticipated that this approach will result in reduced risk to the construction schedule and savings in Life Cycle Costs.
Also, Metro’s bus divisions are currently under the jurisdiction of two utilities; each have their own protocols for rate structures, application for upgrades, and construction activities. These nuances will make syncing activities between divisions under different jurisdictions challenging. During the pandemic, Metro Transit services was qualified as Emergency services for which Metro will continue to pursue preferential rates and top tier support services as part of the system resiliency requirements.
Performance Limitations
Despite all the advances in the last five years since April 2016 when the Board adopted the motion to convert to ZEB operations, the range of BEB’s is still not close to that of CNG buses. The performance limitations may be addressed with a range of strategies, including adding en-route chargers at strategic locations, adjusting the time and distance of the operational assignments (service blocks), and increasing fleet size. Each strategy comes with its own set of risks and costs.
Coordination with Construction and NextGen
BEB deliveries must be synchronized with the charging infrastructure construction schedules to ensure that BEBs are delivered as each construction phase is completed. Further, BEB deliveries should be synchronized with service requirements. Failure to properly coordinate may result in a surplus of buses being delivered. This in turn will result in perfectly good buses being parked or underused while the warranty clock expires.
Currently, there are sufficient buses to support anticipated service needs for the coming years. The biggest risk is having a surplus of buses in the later years as the rate of BEB deliveries required to meet the 2030 goal exceeds the rate at which buses are retired. The risk of surpluses may be addressed with a range of strategies, including early retirement, or selling of CNG buses or converting them to BEB’s. Each strategy comes with its own set of risks and costs.
Funding
As detailed in Figure-1, below, the Rough Order of Magnitude (ROM) cost to transition to 100% ZEB Operations is approximately $3.5B. Over a 10-year period, this is an average of $350.0M per year. In recent years Metro’s bus capital expenditures have averaged approximately $190.0M per year. Therefore, Metro will need to identify funding sources to close the approximately $160.0M annual gap. This is a significant challenge and staff must formally start the funding identification processes. Even as more monies become available, there is growing competition for new and existing funds.
Figure-1
Discussion
DISCUSSION
Approval of the recommendations ensures that the 2030 resolution for the ZEB Program remains a priority for the agency.
Recommendation A: Approve $50.0M LOP Ph 1 J Line (Silver) Charging Infrastructure
With current BEB deliveries under contract to be completed by 2022, a focus on completing the Phase 1 Charging Infrastructure is the next step to provide more capacity for BEB service. Figure 2 describes the phases of the ZEB Master Plan.
The $50.0M LOP budget recommendation for charging infrastructure will be used to fund the Metro facility conversion plan to install depot chargers, at Division 9 in El Monte and add en-route chargers along the J Line (Silver). Approval to establish the infrastructure LOP will enable staff to develop funding for the J Line (Silver) ZEBs for FY23.
Recommendation B: Approve Amending FY22 Budget
Approval of Recommendation B allows for the addition of $34.0M in FY22 budget for this program. At this time, the proposed FY22 Budget is constrained which limits the completion of J Line (Silver) Charging infrastructure installations in phase 1 locations. Additional FY22 funds are needed to progress infrastructure efforts and fully equip J Line (Silver) with Zero Emission Bus operations.
Figure 2 - ZEB Master Plan Phases