BOARD MEETING DATE: September 10, 1999 AGENDA NO. 9
PROPOSAL:
Appropriate Funds from Clean Fuels Fund and Execute Lease and Purchase of Five New-Technology Vehicles for Alternative Fuel Vehicle Loan Program
SYNOPSIS:
The AQMD demonstrates new-technology vehicles with available low-emission and clean-fuel technologies. As part of the Technology Advancement Alternative Fuel Vehicle Loan Program, vehicles are procured as new technologies become available. It is proposed that the AQMD lease for three years, two General Motors EV1’s with advanced batteries and one Toyota RAV4 EV, and purchase two Honda Insight’s with hybrid-electric drivetrains and advanced batteries. Total cost to the AQMD for these five vehicles will not exceed $130,000.
COMMITTEE:
Technology, August 27, 1999. Less than a quorum was present; those Committee Members who were present communicated their concurrence.
RECOMMENDED ACTION:
- Appropriate $78,000 from the Clean Fuels Fund to the Services and Supplies Major Object, Leases Equipment Account of the Technology Advancement Office;
- Appropriate $52,000 from the Clean Fuels Fund to the Capital Outlays Major Object, Automobiles Account of the Technology Advancement Office; and
- Authorize the Chairman to execute leases with General Motors for two EV1’s, a lease with Toyota Motor Sales for one RAV4 EV, and to purchase two Honda Insight’s, for a total amount not exceed $130,000 from the FY1999-2000 Budget as specified in the above actions.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The AQMD operates a number of alternative fuel vehicles (AFVs), including those powered by electricity (EVs), compressed natural gas, liquefied petroleum gas, and methanol. Most of these vehicles are assigned to AQMD inspectors or utilized in the AQMD motor pool. Many of these vehicles are also used in the AQMD’s carpool program.
The AQMD utilizes some AFVs in the AFV Loan program, which demonstrates new clean-fuel vehicles to public and private organizations so that potential purchasers may familiarize themselves with commercially available AFVs. This program is especially important for EVs, in order to educate the fleets and others about EV operating characteristics and charging requirements. These vehicles are also used by AQMD staff for demonstration and display at meetings, conferences and workshops.
Recently, General Motors (GM) has begun to equip EV1’s with advanced nickel-metal hydride (NiMH) batteries that essentially double the range of these vehicles. The Toyota RAV4 EVs come equipped with NiMH batteries and have a range near 100 miles.
Honda intends to begin marketing the Insight hybrid-electric vehicle in December 1999. This vehicle is propelled by the combination of a brushless-DC motor and a 1.0-liter, 3-cylinder gasoline engine. Electrical energy from an alternator and the motor braking system (regenerative braking) is stored in a 144-volt NiMH battery pack. With the combination of electric and gasoline-engine propulsion, the Insight achieves 70 mpg and ULEV emission levels. It contains novel technologies that will also be used in future EVs and clean-fuel hybrid vehicles. Such technologies need public exposure, field demonstration and incremental development by the manufacturer.
Proposal
Staff recommends that the Board authorize the lease of two General Motors EV1’s with advanced batteries, one Toyota RAV4 EV, and two Honda Insight’s with hybrid-electric drives and advanced batteries. These vehicles will join a Honda EV PLUS, a Toyota RAV4 EV and a GM EV1 on loan from GM in the AQMD fleet. Because of the evolving nature of EVs, in most cases the manufacturers lease the vehicles rather than offer them for purchase. Because of anticipated advancements in the technology, GM and Toyota only offer the EV1 and RAV4 EV for lease. The Insight is being offered for sale by Honda.
Benefits to AQMD
The proposed project is included in the November 1998 update of the Technology Advancement plan under Project 98M1-3, Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications. The purpose of including EVs and hybrid-electric vehicles in the AQMD fleet is to illustrate the AQMD’s own commitment to EV technology, and to showcase available OEM EVs and encourage purchase of these vehicles by public and private organizations. The AQMD supports the ARB’s zero-emission-vehicle requirement and strives to educate public and private organizations regarding the benefits and characteristics of EVs and hybrid-electric vehicles. The primary objective of adding these vehicles to the AQMD’s fleet is not the emissions benefits from five EV and hybrid-electric vehicles, but to demonstrate the viability of these vehicles to Basin fleets and to encourage the purchase of these low-emission vehicles.
Sole Source Justification
Section VIII(B)(2) of the procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision d., "other circumstances exist which are in the best interests of the AQMD." The AQMD endeavors to include as many available technologies as possible in its fleet, representing a cross-section of manufacturers. The fleet currently includes a Honda EV PLUS, a Toyota RAV4 EV and a GM EV1 on loan from GM.
Resource Impact
The three-year leases for the GM EV1’s and Toyota RAV4 EV’s will cost approximately $26,000 per vehicle including tax, registration and transportation. Similarly, the Honda Insight’s will cost about $26,000 per vehicle including purchase price, tax, registration and transportation. The total amount for the five vehicles will not exceed $130,000.
With the recommended actions, sufficient funds have been made available in the FY 1999-2000 Budget from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program, and the ARB. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
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