CALIFORNIA AIR RESOURCES BOARD

Innovative Clean Transit Regulation

September 28, 2018

Overview

• Introduction

• Transit agencies are key partners and lead the way

• Proposed Innovative Clean Transit (ICT) regulation

• Available funding

• Next steps before second hearing

2

Vital Roles of Transit Agencies • Provide safe and reliable public transit

services • Benefit local communities • Serve transit-dependent riders

• Complement SB 375 • Reduce passenger car use • Reduce congestion and travel times

for all • Needed to meet climate, equity and

mobility goals • More than 200 transit agencies

• Operate nearly 13,000 transit buses • Varied fleet sizes, modes, terrain,

weather, service areas, etc.

3

Transit Agencies are Partners

• Long-term partners in introducing new technologies • Cleaner engines, alternative fuels, exhaust retrofits • Leading adoption of zero-emission technologies and

low-NOX engines • Addressing barriers, expanding education and outreach

• Developing sustainable transportation • Reduce light-duty vehicle miles travelled • Increase connectivity • Enhance mobility

4

History of Zero-Emission Buses (ZEBs) • Original Transit Fleet regulation approved 2002

• Included a ZEB purchase requirement • ZEB demonstration added 2006 • Board determined technology was not ready 2009 • Technology assessments finalized in 2015

• ZEBs commercially available

• Began workshops to discuss future targets 2015 • Status report to Board 2016

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of Battery and Fuel Cell Electric Buses in California Transit Agencies

E) FCRTA :.. -

Transit Agencies Lead the Way

• ZEBs • 153 in operation

• 433 placed orders

• 729 awarded funding or planned

• More than 50 transit agencies making ZEB purchases

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Setting Early Goals for Complete Transition to Zero-Emissions

• 16 transit agencies Agency Total Buses ZEB Target

AC Transit 632 2040a

Anaheim Resort Transportation 82 2019/2020committed to making Antelope Valley Transit  77 2019 Foothill Transit 373 2030full transition to ZEBs GTrans 65 2035 Humboldt Transit Authorityb 30 2030• Nearly 50 percent of LA Metro 2452 2030 LADOT 357 2030all buses in California Porterville Transit 20 2025 SamTrans 369 2033a  Target not a directive from Board 

b  Joint application with Arcata & Mad River Transit System San Joaquin RTD 111 2025 c  327 trolley buses not included in total Santa Clara VTA 485 2033

Santa Cruz Metro 98 2040a

Santa Monica BBB 200 2030 SFMTA 620c 2035

2028/29aUnion City Transit  26

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Broad Support for ZEB Deployment • Wide range of buses and manufacturers

• Fuel cell and battery electric • CPUC approved truck and bus infrastructure investments

• PG&E: $236 million; PG&E • SCE: $343 million and new rate schedule • SDG&E: $151 million proposed (pending decision)

• Department of General Services streamlining ZEB purchases • SAE published heavy-duty battery electric plug-in standard • Substantial incentives encourage early actions • Continued technology advancement and cost reductions are needed

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Principles of Staff Proposal • Achieve zero-emission transit system by 2040 • Partner with transit agencies on long-term strategies

and implementation • Encourage early action • Ensure sufficient funding opportunities for successful transition • Enhance transit services and encourage innovative mobility options • Provide environmental benefits, especially in disadvantaged

communities (DAC) • Ensure requirements are technologically and financially feasible • Monitor progress and report back to Board periodically

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Proposed ICT Regulation Summary • ZEB rollout plan • Waiver to encourage early action • ZEB purchase requirement

• Phase-in ZEB purchase • Joint group option • Bonus credits for early action • Zero-emission mobility option • Provisions for deferral of ZEB

purchases • Low NOX engines and

renewable fuels • Annual reporting and record

keeping requirements

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Requirements Differ by Fleet Size

• Fleet size is total active buses in the fleet December 31, 2017

• Includes all buses within the scope of the regulation

• Large fleet has 100 or more active buses

• Small fleet has fewer than 100 buses

Staff is Preparing Additional Proposed Changes

Define large fleet as a transit agency: • With more than 100 peak 

buses if serving populations > 200,000, or

• With more than 65 peak buses in South Coast or the San Joaquin Valley

• Bus count excludes demand response buses

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Individual ZEB Rollout Plan

• Informs funding plans, utilities, and engages general public • Approved by the transit’s board of directors and submitted by

• June 30, 2020 for large transit agencies

• June 30, 2023 for small transit agencies

• Rollout plan components

• Goal of full transition to ZEBs by 2040 • Show how ZEBs will serve DACs

• Schedule for bus purchase, conversion and infrastructure build out • Identify potential funding sources

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ZEB Purchase Schedule

• Percentage of new bus purchases need to be ZEB

• Includes any earned credits

• Full useful life for buses (no early replacements)

Year ZEB Percentage of New Bus Purchases

Large Transit Agency Small Transit Agency

2023 25%  ‐

2024 25% ‐

2025 25% ‐

2026 50% 25%

2027 50% 25%

2028 50% 25%

2029 & after 100% 100%

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Early ZEB Compliance • Further encourage early action

• Encourages early emission reductions Staff is Preparing Additional Proposed Changes • Provides flexibility

• Reduce 1st target to 850 ZEBs • Increases access to available incentives • Increase 2nd target to 1250 ZEBs • ZEB purchase requirement

• Waived in 2023 if 1,000 ZEBs purchased statewide by 12/31/2020

• Waived again in 2024 if 1,150 ZEBs purchased statewide by 12/31/2021

• All early ZEB purchases count towards future compliance

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Transits May Comply Jointly OPTIONAL

• Meet individual ZEB targets collectively • In same Metropolitan Planning Organization,

Regional Transportation Planning Organization, Air District, or Air Basin

• All member share infrastructure

• Complements SB 375, provides more flexibility, better land use, and reduces costs

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Credit to Encourage Early Actions OPTIONAL

• Bonus for pioneers with ZEBs already in service

• Took more risks with early technologies and higher costs

• Worked with the State and manufacturers to address barriers

• Count towards future obligations and extends funding eligibility

Technology Placed in Service Bonus 

ZEB Credit

FCEB January 1, 2018 

to January 1, 2023 +1

FCEB Before

January 1, 2018 +2

BEB Before

January 1, 2018 +1

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Zero-Emission Mobility OPTIONAL

• May be used in lieu of ZEB purchases

• Bike sharing, car sharing, vanpool or micro transit

Large Transit  = 320K Passenger Miles

Agency

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Small Transit Agency

Miles from bike sharing programs receive a 3X multiplier incentive 180K Passenger Miles

=

Later Phase-In for Excluded Buses

• Cutaway, motor coach, double decker, and articulated buses

• Excluded from ZEB purchases until January 1, 2026, and

• Until the applicable bus type has passed Altoona testing

• Voluntary ZEB purchases still count towards compliance

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Safeguards to Address Uncertainties • Ensure transit’s individual

circumstances are considered • Delay in the bus delivery by the

manufacturer • Delay due to setback of

infrastructure construction • When an available ZEB cannot

meet a transit agency’s daily mileage needs

• Exemption if a ZEB type is not available

• Financial hardship exemption

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Comprehensive Review on ZEB Technologies

• Continue coordination with transit agencies, manufacturers, utilities, and other state agencies forsuccessful implementation Battery

Performance • Evaluate transit agencies experience and identify issues Battery

degradation • Technology status for cutaway buses and other types individually

• Help formulate appropriate policies and funding strategies

• Board update one year prior to first purchase requirements

Costs Vehicle &

infrastructure capital costs,O&M costs

Range

Real world operating range

Reliability

Availability,road call, fuel efficiency, etc. 

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Low NOX Engines & Renewable Fuels • Starting January 1, 2020

• Low-NOX engines for all transit agencies • When new conventional bus purchases made • If engine available for 2 years

• Except if bus dispatched from NOX exempt areas • Primarily rural counties with cleaner air

• Does not require switching fuel types

• Renewables when fuel contracts are renewed • Large transit agencies

• No additional emission reduction outside of LCFS 21

Economic Analysis

• Overall cost reductions from 2020 to 2050

• Includes low carbon fuel standard credits

• Excludes other incentives • Significant upfront capital

costs for bus purchases and infrastructure

• Funding opportunities can reduce or eliminate early costs

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Low NOX engines, ZEVs, advanced technology, & 

infrastructure FY 18‐19 $125M

Expanded bus or rail services, & multimodal

facilities FY 17‐18 $146M* 

LCFS

Engine replacement &infrastructure in DAC

FY 18‐19 $245M

Credits for using low carbon transportation 

fuels

~$10,000/bus/yr

Significant Incentives Available AB 617

LCTOP

VW

Zero‐emission transit, school, & shuttle bus 

replacements

$130M

Carl Moyer

Cleaner engines & ZEVs up to $80,000/bus plus fueling infrastructure

FY 18‐19 $79M

TIRCP

Rail, bus, ferry transit 

Utility Programs

improvements 

FY 17‐18 $291M* 

service upgrades and Charging infrastructure 

electricity rates (SB350)

>$575M

HVIP

* Calculated from cap‐and‐trade auction proceeds listed at arb.ca.gov/cc/capandtrade/auction/aug‐2018/ca_proceeds_report.pdf

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NO

x Em

issi

on

(Ton

s pe

r Yea

r)

NOX and PM2.5 Emissions Benefits Reduce statewide NOX and PM2.5 tailpipe emissions 7,032 tons and 39.4 tons respectively from 2020 to 2050 relative to current conditions

Estimated Tailpipe NOx Emission Estimated Tailpipe PM2.5 Emission 1,000 3.0

2020 2025 2030 2035 2040 2045 2050

Current Conditions

Proposed ICT Regulation

2.5

200 0.5

PM2.

5 Em

issi

on(T

ons

per Y

ear)

0 0.0

2020 2025 2030 2035 2040 2045 2050 Year Year

800

2.0 600

1.5 400

1.0

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GHG Emissions Benefits Reduce GHG emissions by 19 MMT CO2e from 2020 to 2050 relative to current conditions

Estimated Well to Wheel GHG Emission

GH

G E

mis

sion

(M

illio

n M

etric

Ton

s pe

r Yea

r) 1.5

1.0

0.5

0.0

Current Conditions

Proposed ICT Regulation

2020 2025 2030 2035 2040 2045 2050

Year

25

Environmental Analysis • Draft Environmental Analysis

(EA) completed • Released for 45-Day public

comment period • August 10, 2018 –

September 24, 2018 • Prepare written responses

to comments • Present Final EA and written

responses to comments onDraft EA to Board

• Early 2019

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Benefits of Proposed ICT Regulation

• Health benefits, especially in DACs

• Climate benefits

• Job creation

• Reduces energy use

• Less dependence on petroleum fuel

• Leads zero-emission technology in other heavy-duty sectors

• Other societal benefits 27

Next Steps

• Staff proposed 15 day changes • Modify fleet size definition

• Adjust purchase thresholds for early ZEB compliance

• Release for public comments October/November • Second hearing anticipated January 2019 for vote

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