Agenda Item Wording:
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Advanced Clean Fleet Compliance Pathway - Review and approve the implementation of the Zero-Emissions Vehicle (ZEV) Milestones Option as the City’s method for California Air Resources Board (CARB) compliance under the Advanced Clean Fleet (ACF) regulations.
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Deadline for Action: 3/18/2024
Submitting Department: Public Works
Contact Name and Phone Number: Nick Bartsch, Public Works Director, nick.bartsch@visalia.city <mailto:nick.bartsch@visalia.city>, 713-4052
Department Recommendation:
It is recommended that the Visalia City Council approve the implementation of the Zero-Emissions Vehicle (ZEV) Milestones Option as the City’s method for California Air Resources Board (CARB) compliance under the Advanced Clean Fleet (ACF) regulations.
Background Discussion:
In September of 2020, the Governor issued Executive Order N-79-20, which accelerated actions to mitigate the effects of climate change, including efforts to eliminate emissions from transportation through the advancement of carbon neutral technologies. This regulation requires that all automotive and equipment sales be zero-emission vehicles (ZEV) by 2035, with the full transition of medium- and heavy-duty vehicle fleets to ZEV’s by 2045. Currently, there are only (3) types of vehicles that qualify as zero-emission (or near-zero emission): Battery-electric, Plug-in hybrid (with a range greater than 50 miles of electric-only range), and hydrogen fuel cell vehicles.
The Advanced Clean Fleets (ACF) regulation is part of the California Air Resources Board’s (CARB) overall approach to accelerate a large-scale transition to zero-emission medium- and heavy-duty vehicles. This focuses on vehicles that have a Gross Vehicle Weight Rating (GVWR) of over 8,500 pounds. Under the Model Year Schedule, this regulation requires that State and local government fleets, including city, county, special district, and State agency fleets, ensure 50 percent of vehicle purchases are zero-emission beginning in 2024, and 100 percent of vehicle purchases are zero-emission by January 1, 2027.
Alternatively, State and local government fleet owners may elect to meet ZEV targets using the ZEV Milestones Option, as shown in the table below:
Through the ZEV Milestones Option, State and local government fleets may purchase ZEVs, near-ZEVs, and even internal combustion engine (ICE) vehicles meeting applicable California emission standards, as long as the overall ZEV Milestone targets are met. (Plug-in hybrids qualify as near-ZEV vehicles and can be included in the ZEV calculation until 2035.) The annual ZEV Fleet Milestone target is calculated by counting the vehicles in the fleet for each of the three Milestone Groups, then multiplying the number of vehicles in each Milestone Group by the ZEV percentage requirement for that year.
Due to the current state of technology and the limited availability of vehicles that meet ZEV requirements, City staff is not comfortable with immediately implementing the purchase of the required quantity of medium- and heavy-duty ZEV’s to meet compliance with the current regulations. Particularly with the larger Group 3 - Specialty Vehicles (Solid Waste trucks, for example), the battery performance, reliability, life-expectancy, and the inability of the vehicles available on the market today to meet normal operational needs makes the purchase of these ZEV options infeasible. Therefore, City staff recommends adopting the ZEV Milestone approach to compliance in order to phase in these purchases over the next 20 years. This method will allow more time for any potential changes to the State’s timing of implementation, but also for advancements in manufacturer technologies, and a more strategic approach to the transition to these alternative energy systems. While this approach does not indefinitely delay the implementation of ZEV’s into the City’s fleet, it does temporarily postpone the need to purchase the larger, more expensive, and most impacted specialty ZEV-equivalent vehicles in the fleet.
Fiscal Impact:
The requirement to purchase zero-emission vehicles will have an impact on the cost of vehicles, as well as the type of fueling stations required. The extent of this impact is still unknown as technology advances and new products are introduced into the market. City staff has proposed a city-wide fleet assessment and zero-emission vehicle implementation plan in the budget for the upcoming fiscal year 2024/25. As the exact needs and recommended methods of implementation are determined, they will be brought back to Council for review and approval. The San Joaquin Valley Air Pollution Control District has grants available for the transition to zero-emission vehicles, including vehicle purchases and the addition of fueling infrastructure. Staff will continue to explore other grant opportunities when available.
Prior Council Action: N/A
Other: None
Alternatives: Adopt the Model Year Schedule, requiring that the City immediately comply with the requirement to ensure 50 percent of vehicle purchases are zero-emission beginning in 2024, and 100 percent of vehicle purchases are zero-emission by 2027. If this option were to be selected, it is recommended that all medium- and heavy-duty vehicle purchases be put on hold until additional budgeting and infrastructure accommodations have been made to account for the impacts of these ZEV’s. This is not recommended due to the immediate need for some critical vehicle replacements to maintain ongoing operations of the fleet.
Recommended Motion (and Alternative Motions if expected):
recommendation
Move to approve the implementation of the Zero-Emissions Vehicle (ZEV) Milestones Option as the City’s method for California Air Resources Board (CARB) compliance under the Advanced Clean Fleet (ACF) regulations.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachment: N/A