Title
Electric/Hybrid Bus Transition and Green Transit Technology Overview
Description
This report provides an update on the Public Transit Department’s ongoing and future efforts to evaluate and incorporate electric and other zero or near-zero emissions technology buses as part of the City’s transit fleet.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
The Public Transit Department (PTD) is committed to pursuing zero or near-zero emissions buses, including electric, hybrid-electric and/or other technologies as part of the City’s goals to reduce emissions. The department has worked for many years to ensure that the City’s transit fleet has the most up-to-date buses with proven technology needed to operate in Phoenix’s environment.
The current fuel mix for PTD’s heavy-duty bus fleet of 500 vehicles is 65 percent natural gas and 35 percent biodiesel, both of which are considered alternative fuels in accord with the City’s Climate Action Plan goal TS2.1. This strategy of mixed fuel sources also allows the City to provide a minimum of Sunday-level of local bus service in the event of a disruption that may occur to either fuel source, which has occurred in the past. This strategy was developed in 2013 and approved by City Council after PTD partnered with a fuel strategy consultant, which reviewed the multiple propulsion technologies available in the transit industry. The analysis included the region’s operating environment, environmental benefits, and vehicle and fueling systems’ initial and life cycle costs.
PTD’s vehicles are purchased using 85 percent Federal Transit Administration funds and 15 percent Proposition 400 (regional transit) funds. Phoenix Transportation 2050 (T2050) funds are not used to purchase transit vehicles, and vehicle price assumptions are included in both the T2050 and Prop. 400 funding models. The T2050 funds pay directly for the provision of transit services to the community.
PTD has evaluated Battery Electric Bus (BEB) technology over the years, both firsthand and in partnership with Valley Metro. As part of these evaluations, PTD has performed real-world field tests of BEBs and other emerging technologies brought to the region by various bus manufacturers for testing. To date, on-route field tests have revealed considerable challenges with BEBs operating in our region, especially during hotter months, including range (distance traveled between charges), on-board equipment energy consumption, charging times, and vehicle costs.
PTD staff nonetheless continue to research and test emerging transit technologies for implementation into its transit fleet. Staff will present a Council agenda item proposing to expand the Green Transit Technology Request for Proposals to $150 million. The increased value will provide the opportunity to make significant purchases over multiple years of electric, hybrid-electric, and other emerging technologies that best fit the City’s operational needs. Additionally, staff will pursue any new federal grant opportunities for electric and other alternative propulsion system buses available in the Infrastructure Investment and Jobs Act recently passed by Congress, as well as any other funding sources available.
The RFP will be issued in early 2022 and seek proposals to manufacture buses using battery electric, electric-hybrid, hydrogen power, or other suitable technologies, along with detailing any associated charging and fueling equipment needed for the buses. The buses will be evaluated based on their ability to operate in the Phoenix environment and support local operating needs such as long regional route distances, peak passenger loads, air conditioning systems, and on-board equipment. The sub-fleet would initially serve as a pilot program, which enables PTD to gain experience with newer technologies that will inform the City’s bus fleet transition plan. The term of the awarded contract will be for five years, with the total number of buses to be determined based on the technologies proposed which can accommodate the transit system’s operational needs, as well as any costs and funding strategies.
In conjunction with the purchase of these vehicles, staff will continue researching and applying for grant opportunities as they arise, as newer-technology buses have a higher cost than the current fleet make-up, and additional equipment and infrastructure upgrades may be needed based on the propulsion systems selected.
PTD will also partner with other City departments and local utilities to identify City facilities for infrastructure upgrades necessary to support this transition.
PTD’s current primary task is reviewing existing cooperative transit vehicle contracts held by other purchasing agencies. Cooperative agreements can be entered into by the City when it is found to be advantageous relative to expediting such purchases. In this case, the City could utilize one or more cooperative agreements to acquire a contingent of newer-technology buses for one or more years, during which the PTD would continue its own solicitation processes for existing and newer-technology buses. Staff’s current tasks include reviewing the legal agreements required to enter into such contracts, quantities that may be available for purchase, and reviewing vehicle specifications which meet the Phoenix region’s operational needs. Should these agreements be found to be a viable option for vehicle purchases, staff will return to Council for approval to enter into and make purchases for the continued replacement of vehicles.
Should the cooperative agreements be found not to be a viable option, PTD’s proposed vehicle replacement strategy for the current fiscal year (Fiscal Year 2021-22) will be to order 40 CNG buses to replace buses that are exceeding their useful life. On an annual basis, PTD will return to City Council to review and seek input and approval on future years’ heavy duty bus orders. Such annual updates will include the department’s fleet status, including buses that have met or exceeded their life cycle and require replacement; progress made relative to testing and implementing other propulsion systems acquired through the Green Transit technology RFP’s resulting contracts; and the status of the department’s ability to expand the implementation of such newer technologies based on testing results, equipment and infrastructure upgrades needed to charge or fuel newer vehicles, funding strategies, and vehicles’ ability to meet the system’s operational needs.
The purchase of the 40 replacement buses this fiscal year also allows the City to meet its contractual obligations with its transit service providers. Older, higher-mileage buses are less efficient, more at risk to break down, more costly to maintain, and degrade the overall passenger experience. It is important to note that awarding the contract as outlined in the RFP maintains the integrity of the solicitation. Additionally, the RFP's pricing schedule includes the following language: "The estimated quantities shown on the enclosed Price Schedules are estimates only, contingent upon availability of appropriated funds and subject to change during the term of the Contract. The City is not obligated to make purchases in these exact amounts.”
The following is PTD's current estimates on annual bus replacement needs through Fiscal Year (FY) 2026-27:
• FY 2021-22, replace 40 buses;
• FY 2022-23, replace 40 buses;
• FY 2023-24, replace 40 buses;
• FY 2024-25, replace 60 buses;
• FY 2025-26, replace 60 buses; and
• FY 2026-27, replace 40 buses.
In FYs 2022-27, PTD will prioritize replacement vehicles purchased from the cooperative agreements and/or the Green Transit RFP; incorporate newer propulsion technologies as they are proven to meet the region's operational needs and as additional funding sources are identified; and recognize replacement vehicles will be from a mixture of new technology/propulsion systems.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Karen Peters and the Public Transit Department and Office of Sustainability.