Title
Transition to Zero Emission Heavy-Duty Bus Fleet
Description
This report requests City Council approval of the Public Transit Department’s Heavy-Duty Bus Purchasing Strategy and Zero Emission Fleet Transition Plan for the next five years to advance the City toward a goal of achieving a 100 percent zero-emissions bus fleet by 2040.
Report
Background
The City of Phoenix Public Transit Department (PTD) provides public transportation for approximately half of the Phoenix metropolitan area, including 38 local bus routes, 4 circulator routes, and 6 RAPID (commuter) routes. PTD’s heavy-duty fleet is comprised of 500 40- and 60-foot buses, all of which are powered with cleaner-burning fuels, amounting to 335 compressed natural gas (CNG) and 165 biodiesel buses.
Under Council’s direction, PTD has worked over the years to ensure that its fleet has the most up-to-date, environmentally friendly buses with the best proven technology available and the ability to operate in Phoenix’s harsher climate. Key vehicle factors include range (the distance buses can travel) and operations during Phoenix’s extreme summer temperatures (including both robust air conditioning and available power for multiple on-board systems to provide a high-quality passenger experience year-round). These considerations remain at the forefront of departmental decision-making as the City transitions to a greener, more sustainable heavy-duty transit fleet.
Summary
In January 2022, City Council approved the issuance of a solicitation that allows PTD to implement an initial five-year plan to operate a sub-fleet of near-zero and zero emission heavy-duty buses, during which time staff will evaluate the performance of newer charging/fueling technologies and propulsion systems.
To advance PTD’s goal to begin converting its heavy-duty transit fleet to 100 percent zero-emissions buses (ZEB) by 2040, a bus replacement plan and infrastructure phasing strategy will guide the long-term planning and capital improvement project goals. Key considerations that factor into the long-term mix of ZEBs in PTD’s fleet are: (1) additional federal and regional funding commitments for the purchase and maintenance of capital assets, as transit vehicles are 85 percent federally funded and 15 percent regionally funded; (2) evaluation of the year-round performance of Battery Electric Buses (BEB) and Fuel-Cell Electric Buses (FCEB) in our climate; (3) vehicle production timelines, which currently estimate longer lead times for newer-technology buses and shorter lead times for existing technologies; and (4) commitments to transit passengers and our contracted service providers to continue the acquisition of new vehicles to ensure resiliency of the transit fleet and keep maintenance costs low.
As a result, PTD’s ZEB transition plan is envisioned to occur in two phases:
- Phase I - FY 2023-27: PTD will begin purchasing BEB and FCEB vehicles to initiate the acquisition and testing of the City’s ZEB sub-fleet, while also purchasing a mix of hybrid-electric buses (HEB) and CNG-fueled buses in the initial years to ensure the fleet continues to provide reliable service year-round for our transit riders. The acquisition of low-emission (natural gas) buses will be phased out within the first three years of the plan. As part of citywide efforts to begin transitioning the City's fleets to electric vehicle options, a facilities and infrastructure study has also been initiated as part of Phase I to determine the needs of current and future transit facilities. Staff will return to Council with detailed information and costs regarding these capital investments at a later date. As a result, this study will provide a cost estimate for PTD's Capital Improvement Program (CIP) program. Phase I includes infrastructure improvements in order to fuel the ZEBs, which is anticipated to be partially funded through the Bipartisan Infrastructure Law.
- Phase II - FY 2028-40: Once the evaluation of ZEB vehicles is complete, PTD will continue converting the heavy-duty fleet to 100 percent ZEBs.
WORKFORCE TRAINING
PTD is poised to leverage both existing and new resources to train and develop the existing workforce, while building the foundation for a sustainable source of incoming workers to ensure the success of ZEB deployment. Training will include a comprehensive curriculum, detailed schedule, and occur in various formats to support diverse learner needs, such as in-person instructor-led sessions, hands-on exercises, computer-based training, knowledge checks, reference materials, and operational manuals.
Procurement Information
PTD and Finance Department staff have been working to procure new ZEBs by cooperative purchasing agreements through the State of Washington. Additionally, an RFP solicitation was issued by PTD earlier this year for the contractual purchase of ZEBs. Both the cooperative purchasing agreements and the RFP solicitation are expected to be completed by first quarter 2023. During this process, PTD staff was informed by various bus manufacturers that no ZEBs or HEBs can be delivered prior to calendar year 2025 because of ongoing supply chain disruptions and the resulting backlog of buses already ordered. Due to these lead times, PTD has adjusted its bus procurements to ensure the arrival of buses as quickly as possible to maintain the existing fleet by replacing buses that have met the end of their useful lives.
Bus costs: Current estimated costs for each bus type are as follows:
- 40-foot BEB - $1.1 million
- 40-foot FCEB - $1.2 million
- 40-foot HEB - $750,000
- 40-foot CNG - $551,000
The following is a projected schedule of replacement bus purchase orders during Phase I:
FY 2022-23
- 40-foot BEB - 6
- 40-foot FCEB - 6
- 40-foot HEB - 20
- 40-foot CNG - 18
Total estimated cost: $38.7 million for 50 buses
FY 2023-24
- 40-foot BEB - 6
- 40-foot FCEB - 6
- 40-foot HEB - 25
- 40-foot CNG - 17
Total estimated cost: $41.9 million for 54 buses
FY 2024-25
- 40-foot BEB - 10
- 40-foot FCEB - 10
- 40-foot HEB - 8
- 40-foot CNG - 0
Total estimated cost: $29.0 million for 28 buses
FY 2025-26
- 40-foot BEB - 10
- 40-foot FCEB - 10
- 40-foot HEB - 8
- 40-foot CNG - 0
Total estimated cost: $29.0 million for 28 buses
FY 2026-27
- 40-foot BEB - 12
- 40-foot FCEB - 20
- 40-foot HEB - 8
- 40-foot CNG - 0
Total estimated cost: $43.2 million for 40 buses
At the completion of Phase I, PTD’s zero/near-zero fleet will consist of the following:
By the end of Phase I, PTD will have purchased 96 ZEBs and 69 HEBs, accounting for one-third of the total fleet, with additional plans for ZEB infrastructure at both the South and West bus operations and maintenance facilities to support these new vehicles. For the first two years of Phase I, PTD will reduce its typical annual order of 40 CNG buses to 18 and 17, respectively. However, given the long lead times for the delivery of ZEBs and HEBs, PTD may need to retain a contingent of CNG buses beyond their useful life until ZEB and HEB replacements are received. This is due to the fact that lead times for the manufacture and delivery of CNG buses is between 12 to 14 months, while ZEB and HEB lead times are over 24 months.
Phase II of the plan will not include the purchase of any low-emission (i.e., natural gas) buses, but will focus on the continued acquisition of ZEBs. All procurements starting in FY 2028 will be ZEBs and ZEB-related infrastructure, with the specific ZEB-types to be determined following the results of Phase I evaluations and anticipated technological improvements in ZEB range and efficiency.
Financial Impact
The anticipated cost of buses ordered during Phase I is $182 million: $48.4 million for BEB, $62.4 million for FCEB, $51.8 million for HEB, and $19.3 million for CNG. Buses are funded with federal and regional funds.
All buses will be purchased utilizing future contract awards and CIP budgets.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.