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HomeMy WebLinkAbout#19 CARB Advanced Clean Fleet Analysis AGENDA ITEM #19 Public Utility District m MEETING DATE: June 5, 2024 TO: Board of Directors FROM: Brian Yohn, General Services Manager Michael Salmon, Chief Financial Officer SUBJECT: CARB Advanced Clean Fleet (ACF) Analysis APPROVED BY: Brian C. Wright, General Manager RECOMMENDATION: Receive this informational workshop and provide input to staff. BACKGROUND: Beginning January 1, 2024, the California Air Resources Board (CARB) Advance Clean Fleet (ACF) regulation requires fleets that are well suited for electrification to reduce emissions through purchase requirements for phase-in Zero-Emission Vehicles (ZEVs) for targeted fleets. CARB approved ACF regulations on April 28, 2023, with an effective date of October 1, 2023. The ACF regulation applies to the District as a State and Local Government agency. It requires the transition from all fuel-based vehicles with a gross vehicle weight rating (GVWR) over 8,500 pounds to zero-emission vehicles (ZEVs) between 2024 and 2042, with annual reporting due April 1 st each year, starting in 2024. The District currently operates thirty-one (31) vehicles over 8,500 lbs. which are subject to CARB's ACF regulations. Heavy-duty vehicles warranted for off-road use are necessary for the District to perform the functions required to support utility operations. In 2023, Truckee Donner PUD purchased two (2) 2024 Chevrolet Silverado EV light duty work trucks to replace light duty vehicles scheduled and budgeted for replacement. Staff will continue to identify and consider opportunities where ZEV vehicle purchases can be feasibly made for future vehicle replacements. Compliance pathways available to the District are the purchase compliance pathway and the milestone compliance pathway. • Purchase compliance pathway: ZEV requirements for new purchases only. Truckee Donner PUD's low population county exemption delays ZEV Page 1 of 3 Page 427 of 449 purchase requirements until January 1, 2027. Beginning January 1, 2027, 100 percent of vehicle purchases are required to be zero-emissions if available. • Milestones compliance option pathway: allows for phasing ZEVs into the fleet between 2025 and 2042, depending on the type of vehicle and its usage. To assist with fleet evaluation and long-term purchase strategies, staff contracted with Yorke Engineering, LLC, to analyze and develop compliance strategies, including timing of ZEV replacements, applicability of exemptions, and overall planning for ACF compliance. ANALYSIS AND BODY: Considerations for ZEV vehicle purchases include: • Vehicle intended uses • Payload specifications • Vehicle range • Tow capacity • Capacity to perform, and is warranted for, the functions required to meet the District's needs? • Vehicle availability Availability of medium and heavy-duty vehicles that meet zero emission requirements that can effectively perform the necessary functions to operate the District is currently very limited, leading the District to the purchase pathway. Yorke Engineering, LLC analysis supports following the purchase compliance pathway. The District will, unless a competitive and feasible ZEV option is available, continue to purchase medium and heavy-duty ICE vehicles before January 1, 2027, and seek exemptions when necessary after that. This will position the District fleet with a late model bias, moving ZEV purchase dates farther into the future. This strategy provides the District with flexibility to implement ZEV vehicles into the fleet when ZEV technology, vehicle availability, and market conditions improve. It also allows the District to consider ZEV vehicle options available that best meet the needs of the District. The workshop item presented by staff will provide an overview of the District's current fleet assets as well as short and long term strategies in achieving compliance with an ACF rule making that creates a significant amount of uncertainty in terms of future fleet procurement landscapes.. GOALS AND OBJECTIVES: Page 2 of 3 Page 428 of 449 District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. FISCAL IMPACT: This workshop item is informational and has no fiscal impact. ATTACHMENTS: None Page 3 of 3 Page 429 of 449