TENDER - ITT ELECTRIC VEHICLE FOR FVRD VEHICLE FLEET

Transcription

1 TENDER - ITT ELECTRIC VEHICLE FOR FVRD VEHICLE FLEET ITT TITLE: Electric Vehicle for FVRD Vehicle Fleet ITT NUMBER: DATE ISSUED: July 20, 2015 CLOSING TIME/DATE: 4:00 p.m. Local Time August 4, 2015

2 TENDER ITT TITLE: Electric Vehicle(s) for FVRD Fleet ITT NUMBER: DATE ISSUED: July 20, 2015 CLOSING TIME/DATE: August 4, :00 PM Local Time ANTICIPATED DATE OF AWARD: Week of August 10, 2015 This tender document contains the Invitation to Tender and the Bidding Instructions & General Terms of Tender. Page 1 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

3 Table of Contents Section Page No. 1.0 Overview Scope Vehicle Specifications and Delivery Schedule Tender Closing Bidding Instructions and Submission of Tenders Form of Tender Signatures Rights and Reservations of the FVRD Evaluation of Bids Notice of Award Clarifications and Addenda Revisions, Withdrawal and Irrevocability Costs of Preparation and Limitation of Liability Solicitation of FVRD Board of Directors and Staff Conflict of Interest Confidentiality Prices Letter of Award and Contract 12 Schedule A Bid Submission Form 13 Form of Cover Letter 14 Part 1 Profile and Qualifications 15 Part 2 Costs and Pricing 16 Part 3 Specifications and Warranty 17 Part 4 Delivery Date 18 Part 5 After Purchase Servicing 19 Schedule B FVRD Electric Vehicle Business Case October Page 2 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

4 INVITATION TO TENDER 1.0 OVERVIEW 1.1 The FVRD invites bidders ("Bidders") to submit a bid in response to this invitation to tender ("ITT"). 1.2 The Fraser Valley Regional District ("FVRD") is seeking to acquire one (1) electric vehicle for its corporate fleet. In October 2014, the FVRD Board endorsed a comprehensive electric vehicle business case for its fleet, and directed staff to consider the findings during the next purchase of a corporate fleet vehicle. As one of the major benefits with acquiring an electric vehicle is to reduce emissions of air pollutants and greenhouse gases, the vehicle to be fully electric, not a hybrid or plug in hybrid. The FVRD has since purchased its first electric vehicle is now seeking to acquire a second electric vehicle in accordance with this ITT. The business case can be found here: ittee/archived%20agendas/racs%202014%2010%2015/racs%202014%2010%2015%2 0Agenda.pdf, Agenda Item and is attached as Schedule B. Page 3 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

5 2.0 SCOPE VEHICLE SPECIFICATIONS AND DELIVERY SCHEDULE 2.1 Specifications The express specifications consist of the following items as set out below. Each of these specifications must be met in order for the Bidder to be considered and are deemed to be mandatory evaluation criteria. Add-ons and additional specifications will also be considered % electric (battery electric vehicle) 2. Sedan or hatchback, capable of seating 4 or more adults 3. US Environmental Protection Agency and/or manufacturer s estimated range of 100 km or greater on a single full charge (100%) 4. Capable of travelling highway speeds (100 km/h or greater) 5. Battery charging system to be 3.0 kw or greater 6. New vehicle (2014, 2015, 2016 model year) 7. Quick charge port (capable of using Level 3 charging stations) 8. Battery warranty of 5 years/100,000 km or greater (against defects in material or workmanship and capacity loss) Page 4 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

6 2.2 Delivery Schedule The FVRD would expect to take delivery of the vehicle(s) as soon as reasonably possible. 2.3 Works Part 2.0 shall be referred to as the Works. 3.0 TENDER CLOSING Tenders must be received by 4:00 PM local time on August 4, 2015 ("Closing") at the following address: Fraser Valley Regional District Attention: Rebecca Abernethy Cheam Avenue Chilliwack, BC V2P 1N6 OR by to The time that bids are received will be conclusively deemed to be the time shown on the clock used by the FVRD for this purpose. Page 5 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

7 4.0 BIDDING INSTRUCTIONS AND SUBMISSION OF TENDERS 4.1 Tenders in accordance with the specifications in the Invitation to Tender must be received by the FVRD by Closing at the location indicated in the Invitation to Tender. Tenders received after Closing will not be considered. The FVRD may extend the date and/or time of Closing by addendum for any reason and, in that case, the extended date and/or time will become the new Closing Date. The time and date stamp clock at the Closing location is the official clock for determining the time that bids are received. The time that bids are received on Closing will be the official clock for determining the time that a bid was received. 4.2 Tenders may be delivered (preferably) in electronic format as a PDF file by to [email protected]; OR in hard copy - (2) printed copies (including a digital copy on CD/DVD or flash drive). Tenders may not be received by facsimile transmission (fax). 4.3 Tenders must be submitted in the form attached as Schedule A. 4.4 Tenders delivered in hard copy must be delivered prior to the closing date to FVRD Reception between the hours of 8:30 AM and 4:30 PM local time in a sealed envelope clearly marked with the ITT Number, ITT Title and the Bidder's name and address. 4.5 It is the responsibility of the Bidder to ensure that the Tender has been received by the FVRD. To confirm receipt, please contact Rebecca Abernethy at [email protected] or phone at Bidders are responsible for assuming all risks associated with ensuring that their bid is received on time. Page 6 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

8 5.0 FORM OF TENDER Bidders are requested to submit their bid, in the form attached as Schedule A, setting out in sufficient detail: (i) (ii) (iii) (iv) (v) (vi) Cover letter including company name and contact information; Part 1 - Company profile and qualifications; Part 2 - Bid price and GST listed as a separate line item; Part 3 - Specifications and warranty; Part 4 - Delivery date; and Part 5 - After purchase servicing. 6.0 SIGNATURES All tenders shall contain the full legal name of the individual, company or partnership submitting the bid, the Bidder's address and other contact information and, in the case of a company, partnership or other corporate entity, shall be signed by an authorized signatory of the bidder capable of legally binding the Bidder. Page 7 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

9 7.0 RIGHTS AND RESERVATIONS OF THE FVRD The FVRD: (i) reserves the right to reject any or all bids; (ii) may not accept the lowest priced or any bid and may, at its sole discretion, accept any bid that is deemed to be most beneficial to the FVRD; (iii) reserves the right to waive informalities, irregularities, technicalities and minor non compliances; (iv) (v) (vi) (vii) (viii) may cancel this tender at an time prior to or after Closing; reserves the right to accept a bid in total or in part or to accept some or all options listed; reserves the right, in the event that only one bid is received, to terminate this tender process; may reject any bid that is unsigned, improperly signed, conditional, illegible, contains arithmetical errors, erasures or irregularities of any kind; and reserves the right to change the scope of work and retender the Project or negotiate the scope of work, or a portion thereof, if the FVRD does not receive a substantially compliant bid within the FVRD's budget. Page 8 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

10 8.0 EVALUATION OF BIDS Tenders will be evaluated on the basis of the overall value to the FVRD, at the FVRD's sole discretion, having regard for the following: Decision Factors Mandatory Evaluation Criteria - Pass/Fail Criteria Received by closing date Submission of Cover Letter Submission of Part 1 Profile and Qualifications Submission of Part 2 Costs and Pricing Submission of Part 3 Specifications and Warranty Note: Specifications detailed in Section 2.1 must be satisfied Submission of Part 4 Delivery Date Submission of Part 5 After Purchase Servicing SCORE FOR MANDATORY CRITERIA - Pass/Fail (P/F) Technical Evaluation Criteria Maximum Points SCORE P/F P/F P/F P/F P/F P/F P/F Experience and Qualifications 10 Price 60 Delivery Date 15 After Purchase Servicing 15 TOTAL POINTS AWARDED 100 Page 9 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

11 9.0 NOTICE OF AWARD Subject to the approval of the FVRD Board of Directors, in its absolute and unfettered discretion, the FVRD will provide notice of award in writing to the successful bidder, if any CLARIFICATIONS AND ADDENDA 10.1 All inquiries regarding this tender must be submitted in writing no later than 4:00 p.m. Local Time July 29, 2015: CONTACT PERSON: Address: REBECCA ABERNETHY Cheam Avenue Chilliwack, BC V2P 1N All responses to inquiries, if deemed necessary by the FVRD, and any revisions to the tender will be issued by way of addendum only, which addendum will be posted on the same public notice board as this call for tenders. It is the sole responsibility of the bidder to check, from time to time, the public notice board ( or for addenda and by submitting a tender in response to this call for tenders, the bidder acknowledges having received, reviewed and considered all addenda issued in respect thereof. Clarifications, comments, revisions or any other information regarding this tender obtained by the bidder from any other source is not authorized and should not be relied upon REVISIONS, WITHDRAWAL AND IRREVOCABILITY Amendments to tenders may be submitted in writing at any time before Closing. No amendments or revisions received after Closing will be considered. Any amendment must be signed by an authorized signatory of the bidder and submitted in accordance with the requirements for the Submission of Tenders, as set out above. All tenders will remain open for acceptance for 90 from Closing. Page 10 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

12 12.0 COSTS OF PREPARATION AND LIMITATION OF LIABILITY All costs incurred by the bidder in the preparation and submission of their tender will be at their own expense. The FVRD will not be liable to any bidder for any claims, whether for costs, expenses, losses or damages, or for loss of anticipated profits, incurred by the bidder in preparing and submitting their tender or participating in this tender process SOLICITATION OF FVRD BOARD OF DIRECTORS AND STAFF Bidders (and their agents) are not permitted to contact any member of the FVRD's Board of Directors or staff with respect to this tender at any time prior to the award or termination of this tender, except as expressly provided herein. The FVRD reserves the right to reject any tender of any bidder that acts in contravention of this no-solicitation requirement CONFLICT OF INTEREST Bidders shall disclose any potential conflict of interest or existing business relationships they may have with the FVRD, its elected or appointed officials or employees CONFIDENTIALITY All tenders become the property of the FVRD and will not be returned to the bidder, except as expressly provided for herein. All tenders will be held in confidence by the FVRD unless disclosure is otherwise required by law. Page 11 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

13 16.0 PRICES 16.1 The bid price will represent the entire cost (excluding GST) to the FVRD to deliver either one (1) electric vehicle to the FVRD located at Cheam Avenue, BC 16.2 Notwithstanding the generality of the foregoing, bidders shall include in the bid price sufficient amounts to cover: (i) the costs of all labour, equipment and material included in or required for the Works, including all items which, while not specifically listed in the Specifications, are included in the Works specifically or be necessary inference from the Specifications.; (ii) (iii) (iv) all assessments payable with respect to labour as required by any statutory scheme such as unemployment insurance, holiday pay, insurance, CPP and all employee benefits and Works Compensation Act (BC); cost of subcontractors; and all overhead costs, including head office and on-site overhead costs, and all amounts for the profit of the Bidder. The bid price shall cover all taxes and assessments of any kind payable with respect to the Works, but shall not include GST. GST shall be listed as a separate item. In the event of a discrepancy between a unit price and an extension of price, the unit price will govern LETTER OF AWARD AND CONTRACT The FVRD and successful bidder, if any, will enter into a written contract for the Works upon the FVRD awarding a contract to the successful bidder, if any, by way of a Letter of Award. Page 12 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

14 Schedule A BID SUBMISSION FORM List of Contents Bidders must use this form for the submission of bids. This form consists of the following: Cover Letter, including company name and contact information Part 1 - Bidder's Profile and Qualifications Part 2 - Costs and Pricing Part 3 - Specifications and Warranty Part 4 Delivery Date Part 5) After Purchase Servicing Page 13 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

15 FORM OF COVER LETTER TO: FRASER VALLEY REGIONAL DISTRICT ("FVRD") RE: Electric Vehicle for the FVRD Vehicle Fleet ITT I/We, (the "Bidder") (Name of Bidder) of (Complete Address) in furtherance of the above-noted invitation to tender, including all addenda and clarifications thereto (collectively, the "Tender"), hereby submit my/our bid, which includes the information requested in section 2.0 of the Tender, organized as follows: Part 1) Bidder's Profile and Qualifications Part 2) Costs and Pricing Part 3) Specifications Part 4) Delivery Date Part 5) After Purchase Servicing This bid shall be irrevocable for ninety (90) days from the closing date of the Tender, as specified in the Tender. By submitting this bid, I/We hereby acknowledge and agree that: (i) (ii) (iii) Through submission of this bid, we agree to all of the terms and conditions of the Tender. I/We have checked, from time to time, the public notice board ( or for addenda and, by submitting this bid, have received, reviewed and considered all addenda issued in respect of the Tender. I/We have carefully read and examined the Tender and have conducted such other investigations as were prudent and reasonable in preparing the bid and I/We agree to be bound by the statements and representations made in this bid. Signed by the authorized signatory/ies of the Bidder on this day of, 201 : Name: Title: Name: Title: Page 14 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

16 PART 1 - PROFILE AND QUALIFICATIONS General Information Name: Address: Name and title of Representative: Telephone: Form of Business Organization Sole Proprietorship Partnership Corporation Date of Establishment Date of Incorporation Business Number Qualifications and Experience Please provide details of your ability, capacity, skill, expertise and experience to satisfactorily perform the Works contemplated by the Tender and to provide quality of service and afterservice to the FVRD. [details] Business Information Please provide details of your financial history, performance and capabilities, your reputation and capabilities of personnel within your organization to demonstrate your overall business, technical and service reputation. [details] Page 15 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

17 PART 2 - COSTS AND PRICING The FVRD requests pricing for the purposes of acquiring one (1) vehicle as outlined in this ITT. Provide the vehicle price based on the purchase of one (1) vehicle. If there are different trims or models available, please list all of the options available, and in Part 3, clearly provide the details for each of the trim/model options. Attachments to Part 3 are acceptable for this purpose. Bid Price Per Vehicle (one): Plus GST (5%): TOTAL PRICE: $ $ $ Page 16 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

18 Please complete the table below: PART 3 - SPECIFICATIONS AND WARRANTY Specification % electric (battery electric vehicle) 2. Sedan or hatchback, capable of seating 4 or more adults 3. US Environmental Protection Agency and/or manufacturer s estimated range of 100 km or greater on a single full charge (100%) 4. Capable of travelling highway speeds (100 km/h or greater) 5. Battery charging system to be 3.0 kw or greater; 6. New vehicle (2014, 2015, 2016 model year) 7. Quick charge port (capable of using Level 3 charging stations) 8. Battery warranty of 5 years/100,000 km or greater (against defects in material or workmanship and capacity loss) 9. DETAIL WARRANTY 10. IDENTIFY EXTERIOR COLOUR OPTIONS 11. IDENTIFY INTERIOR TRIM OPTIONS AND DETAILS Compliance state yes/no and details Alternative offered Page 17 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

19 PART 4 DELIVERY DATE Provide earliest and latest delivery date to Cheam Avenue, Chilliwack, BC. Page 18 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

20 PART 5 AFTER PURCHASE SERVICING Provide details with respect to the service package you offer for purposes of maintaining the vehicle, including schedule and cost of preventative maintenance over a 5 year period. Page 19 Electric Vehicle for FVRD Vehicle Fleet ITT 15005

21 FRASER VALLEY REGIONAL DISTRICT ELECTRIC VEHICLE BUSINESS CASE --- Fraser Valley Regional Distrid Page 20 Electric Vehicle for FVRD Vehicle Fleet - ITT 15005

22 Fraser Valley Regional District Electric Vehicle Business Case Table of Contents Executive Summary l 1 Objectives Background Electric Vehicles- History and Overview Types of Battery-Powered Vehicles Capabilities Safety Records Charging Number of Electric Vehicles in BC and in the FVRD Experience in Other Fleets Air Quality and Greenhouse Gas Emissions Needs of FVRD Fleet Vehicle Users User Experience in Other Fleets Financial Analysis Methodology Vehicles Considered Annual Mileage Expected Service Life Energy Prices Fuel Efficiency Manufacturer's Suggested Retail Price Annual Maintenance lnsurance Resale or Salvage Rebates or lncentives Carbon Offsets Results Discussion Alternatives limitations and Uncertainties Conclusions i I Page

23 Fraser Valley Regional District Electric Vehicle Business Case List of Tables Table 1. Range of Commercially Available Electric Vehicles in Canada... 4 Table 2. FVRD Pooled Fleet Vehicle Trip Data Table 3. Manufacturer's Suggested Retail Price for Four Vehicles Compared Table 4. Annual Insurance Cost Estimates for Four Vehicles Compared Table 5. Scenario #1- Lifecycle Cost Comparison of Six Vehicles with a 7 year service life, driven 13,000 km/year Table 6. Life cycle Cost Comparison of Six Vehicles across Four Scenarios Table 7. Scenario #5- Lifecycle Cost Comparison of Six Vehicles, Including Projected Energy Price Increases and Inflation Table 8. Service Life Greenhouse Gas Emissions (as C0 2 -equivalent) and Offset Cost List of Figures Figure 1. Electric vehicle charging stations (Level2 and 3) in Southwestern BC, from PlugS hare... 6 Figure 2. FVRD Nitrogen Oxides Sources (2010)... 8 Figure 3. FVRD Greenhouse Gas Sources (2010)... 9 Acknowledgements Thank you to the Fraser Basin Council for providing numerous reference documents and background information, as well as to the City of Chilliwack, City of Surrey and City of Vancouver for providing data and information on their experiences with fleet electric vehicles. iii Page

24 Fraser Valley Regional District Electric Vehicle Business Case Executive Summary The Fraser Valley Regional District (FVRD) is exploring incorporation of one or more electric vehicles into its corporate fleet. This business case describes electric vehicle history and capability, air quality benefits, FVRD fleet user needs, electric vehicles in other fleets, and outlines a comprehensive financial analysis taking into account the service life of the vehicles. Pursuit of electric vehicles strategically aligns with a number of the FVRD's goals and pia ns. Electric vehicles produce zero air contaminant and greenhouse gas emissions because they run on electricity, not gasoline or diesel. Given that vehicles account for a substantial portion of air emissions in the region (45% of nitrogen oxides and 37% of greenhouse gases), electric vehicles offer substantial environmental benefits. Electric vehicles are consistent with the FVRD's aims to improve air quality in the region, as outlined in the 1998 Air Quality Management Plan. They also support the 2004 Regional Growth Strategy's first goal of increasing transportation choice and efficiency. Electric fleet vehicles coincide with the FVRD's 2009 Corporate Greenhouse Gas Emissions Reduction Plan and show that the organization is leading by example. There are numerous models of electric vehicles currently commercially available in Canada, and many of those models have been in production for several years. Most electric vehicle batteries also come with an eight year warranty. Electric vehicles are capable of travelling over 100 km on a single charge, which FVRD fleet vehicle trip data demonstrates should meet the needs of 73% of trips. Th is business case presents a comprehensive financial analysis of incorporating electric vehicles into the FVRD fleet, comparing the lifecycle cost of two models of electric vehicles with four models of conventional gasoline vehicles. This business case takes into account purchase price, service life, annual mileage driven, fuel economy, gasoline and electricity prices, maintenance costs, insurance costs, and resale/salvage value. When looking at all of these variables through a vehicle's lifecycle, across five different usage scenarios, one of the most cost effective vehicles each time was an electric vehicle, which is projected to save more than $3000 compared with the current fleet mix. Savings are generated mainly from reduced fuel and maintenance costs. As such, electric vehicles that are driven more and/or that stay in service longer have even greater financial benefits. When considering the triple bottom line, electric vehicles are an economically, environmentally, and socially responsible choice for the FVRD fleet. It is concluded that the FVRD incorporate this electric vehicle business case as a reference document in the fleet management program, and consider electric vehicles or alternatives each time fleet vehicles need to be replaced. lipage

25 Fraser Valley Regional District Electric Vehicle Business Case 1 Objectives This business case is designed to determine how one or more electric vehicles might fit into the Fraser Valley Regional District (FVRD) fleet. Specifically, this business case covers: The history and background on electric vehicles; How electric vehicles would impact the FVRD's corporate greenhouse gas and air pollutant emissions; How electric vehicles would meet the needs of FVRD fleet vehicle users; The lifecycle financial costs of owning and operating an electric vehicle compared with a conventional gasoline vehicle; Discussion, including limitations and uncertainties; Conclusions. 2 Background The FVRD strives to fulfill its mandate of providing high quality services for its region whilst fostering current and future economic, environmental and social well-being in its community. One ofthe services the FVRD offers is air quality management as well as greenhouse gas emissions and climate change planning. The FVRD's policy direction on both fronts is to reduce emissions of contaminants and thereby work to continuously improve air quality and reduce the region's impact on global climate change. The FVRD strives to deliver its services in a cost-effective manner to its taxpayers. Considering these environmental and financial objectives, pursuit of electric vehicles for the FVRD' s corporate fleet strategically aligns well on both fronts. 2.1 Electric Vehicles- History and Overview Electric vehicles have existed for more than one hundred years, as some of the earliest cars developed ran from an electric motor. 1 There was a resurgence of electric vehicles in the United States in the 1990s from a major manufacturer 2 (General Motors), however all of those vehicles were leased, withdrawn at the end of their lease, and destroyed (except for a few museum exhibits). Later in the 1990s, Toyota developed the hybrid Prius 3 and In 2008, Tesla began selling the fully electric Roadster. Since 2008, a number of electric vehicle models from multiple manufacturers have become commercially available, with new models coming onboard all the time. The fully electric Nissan Leaf electric vehicle began sales in /a mhistory.si.edu/ onthemove/ collection/ ob ject_l303.html Page

26 Fraser Valley Regional District Electric Vehicle Business Case As of fall 2014, there are at least six models of fully electric vehicles commercially available in Canada, 4 5 including: Nissan Leaf Ford Focus EV Smart ForTwo ED Mitsubishi i-miev BMWi3 Tesla ModelS More models are projected come available all the time, such as a Kia Soul EV. This list does not include plug-in hybrid vehicles or hybrid vehicles, as these are not fully electric vehicles Types of Battery-Powered Vehicles There are several types of battery-powered vehicles. 6 For the purposes of this business case, the term electric vehicle refers to battery electric vehicles. Battery electric vehicles (BEVs) have an electric motor and are powered exclusively by electricity. They plug in to charge and emit zero emissions. A Nissan Leaf is an example of a battery electric vehicle. Plug-in hybrid electric vehicles (PHEVs} have both an electric motor and internal combustion engine. The batteries charge by being plugged in and they also produce zero emissions when operating in electric mode {though they do produce emissions when using the internal combustion engine). A Chevrolet Volt is an example of a plug-in hybrid. Conventional hybrid vehicles have combined electric motors and internal combustion engines. The battery charges by capturing energy from braking. These vehicles do not plug in to charge. A Toyota Prius is an example of a conventional hybrid vehicle. Battery electric vehicles produce zero emissions at all times, because they are running on a battery exclusively. Plug-in hybrid electric vehicles produce zero emissions when driving in electric mode, but consume gasoline and emit air pollutants and greenhouse gases when running on their gasoline engine. Conventional hybrid vehicles produce emissions at all times, but they typically emit fewer pollutants than internal combustion engine vehicles (non-hybrids) due to improved efficiency from the electric motor Capabilities The commercially available electric vehicles described earlier are all capable of driving as a conventional vehicle is able (e.g. travelling at highway speeds, driving in the snow). The major limitation with electric vehicles is the range (distance) they can travel before requiring recharging (analogous to filling up a gas th eglobe andm ail. com/globe-drive/ culture/technology I pi ugge d-i n-ele ctri c-veh ides-coming-tocanada-in-2015/article / 6 3IPage

27 Fraser Valley Regional District Electric Vehicle Business Case tank). Range is impacted by numerous factors, including ambient temperature, wind, rain, load (e.g. one versus five passengers) and use of heating or cooling systems. Plug-in hybrid vehicles typically have a shorter electric range than battery electric vehicles, however after their electric range is depleted, they are able to run on a gasoline engine. Table 1 below illustrates the upper level range the United States Department of Energy publishes for various electric vehicles. 7 Table 1. Range of Commercially Ava ilable Electric Vehicles in Canada In short, electric vehicles can do most of what a conventional vehicle can do, with the addition of being quiet and very responsive and enjoyable to drive, due to high torque from the electric motor. For comparison purposes, a trip from Chilliwack to Abbotsford and back is approximately 75 km, while a trip from Chilliwack to Hope and back is approximately 100 km. A Nissan Leaf or Ford Focus EV would be expected to make either round trip without requiring charging at the destination Safety Records Commercially available electric vehicles are required to pass safety tests, similar to any other vehicle on the road. In fact, the National Highway Traffic Safety Administration in the United States reports that the Ford Focus EV is even safer than the Ford Focus gasoline model; while both models received 5/5 stars overall, the Focus EV had higher scores than the Focus SE on frontal crash and rollover (the EV received 5/5 for both, these received 4/5). 9 The Nissan Leaf similarly has a high safety rating, with an overa114/5 star score. A number of sources also project that electric vehicles may be even more safe than internal combustion engine vehicles, as they do not contain flammable liquids (gasoline) While electric vehicle batteries offer high energy density, and there have been reports of battery fires, manufacturers take a number of precautions, such as fuses and circuit breakers that detect collisions. Overall, it is expected that electric vehicles will be at least as safe as conventional gasoline vehicles, if not even more safe. 7 / 8 toyota.ca/toyota/ en/vehicles/prius-pi ugin/features-benefits/performance 9 /Vehi cle+shoppers/s-star+safety+ratings/2011-newer+vehi cles I auto. howstuffwo rks.com/a re-el ectric-ca rs-safe-in-acciden ts.htm 41Page

28 Fraser VaJiey Regional District Electric Vehicle Business Case In terms of visibility and safety while driving, the five car models compared (Toyota Prius, Ford Focus SE, Toyota Corolla, Nissan Leaf, Ford Focus EV), are expected to have similar performance as they are all at a similar height Charging There are three generally recognized levels of electric vehicle charging. 12 Levell charging is conducted by plugging the vehicle into a standard wall outlet (110 or 120 V). From empty to a full charge, it typically takes hours to replenish the battery, depending on the vehicle. Level 2 charging is the type most commonly found at electric vehicle charging stations (for example, the FVRD's Chilliwack office charging station is a Level 2}. These units use 220/240 V, and a vehicle typically takes 4-8 hours to charge. There are more than 500 Level 2 charging stations in BC currently, with more being added all the time. Level3 or fast chargers typically provide 480 V and can charge a vehicle from empty to about 80% capacity in minutes (charging beyond 80% on a level3 can damage the battery, instead most Level 3 stations will drop their voltage after 80% capacity is reached). There are currently ten Level3 fast chargers in BC (Duncan, Nanaimo, Sechelt, Squamish, North Vancouver, Surrey [two], Langley, Merritt, Kamloops}. 13 Two level3 charging stations are projected to be installed in the FVRD, in Abbotsford at Sumas Way (just south of Highway 1) and in Hope by early Electric vehicles can hold their charge for months, so if a vehicle is parked with a charge and not used for a period of time, it is not expected to lose its range significantly. 15 Figure 1 shows a screenshot from the PlugShare 16 website, showing Level 2 and Level 3 electric vehicle charging stations in southwestern BC. The map shows that the FVRD municipalities of Abbotsford, Chilliwack, and Hope have multiple charging stations. For the FVRD, most charging is expected to be completed at the FVRD office using the existing Level 2 charging station, which is currently in place and would entail no additional capital cost. There are two charging ports at the station fevsolutions.avinc.com/electric_ vehicles/new_ way_ to _refuel/different_ ways_ of_ charging/ u 14 BC Hydro- Electric Transportation. October Personal Communication ides/ 16 SIP age

29 Fraser Valley Regional District Electric Vehicle Business Case Figure 1. Electric vehicle charging stations (Level 2 and 3) in Southwestern BC, from PlugShare I Resldenllal Chargers!." '-,;:.., 1-._..... : Pullltc Slabo!lS ' '..1.: L. L~ f'. Hr:~h Powt~r Staboos I'. '. 0 In-Use Slal;cns ~. I..(. ;.(.(.( \ I ' m ' I. I... \ fl r il w ;.< z Number of Electric Vehicles in BC and in the FVRD As of May 2014, there were approximately 1000 electric vehicles in BC, with about 30 of those registered in the FVRD. 17 This means that per capita, electric vehicles are underrepresented in the Fraser Valley currently (the FVRD population is about 288,000, which is 6.3% of BC's 4,580,000 people). 18 The FVRD's January 2014 Trip Diary shows that the average trip length by vehicles in the FVRD is 12.2 km 19, which means that an electric vehicle that typically has a range of over 100 km on one charge should serve the needs of many trips. Given BC's clean source of electricity from hydro, and the Lower Fraser Valley's relatively mild climate, this part of the province and country is an ideal location for electric vehicles. 17 Insurance Corporation of British Columbia. May Personal Communication. 18 http :1/www. bcstats.gov. bc.ca/statisticsbysubject/demography /Popu lationestimates.aspx 19 fvrd. bc.ca/lnsidethefvrd/regional Planni ng/docu m ents/t ransporta tion/web%20t rip%20diary. pdf GIPage

30 Fraser Valley Regional District Electric Vehicle Business Case Plug in BC Communications Strategy Plug in BC, administered by the Fraser Basin Council, has developed a Communications Strategy to raise awareness and promote uptake of Electric Vehicles in BC. The program has been branded Emotive: The Electric Vehicle Experience ( which includes shareable communication materials, such as digital content, as well as presence of electric vehicles at community events Experience in Other Fleets Many other local government fleets across BC have electric vehicles. The Cities of Chilliwack, Surrey, and Vancouver are examples in the lower Fraser Valley, but other parts of the province also have electric vehicles in their fleets, including the City of Prince George, City of Nanaimo and Town of Qualicum Beach. When preparing this business case, the Cities of Chilliwack, Surrey and Vancouver were contacted to find out details of their electric vehicle fleets, such as the number and types of vehicles, how long they had been in service for, their experience in fleets, and their actual operating costs. While all three municipalities had conducted some analysis on how electric vehicles would perform in their fleets and what the cost was projected to be, none of the municipalities completed a detailed written business case compiled in one document. City of Chilliwack: one Ford Focus EV, in service since City of Surrey: five Nissan leafs, one in service since 2011, the other four since City of Vancouver: twenty-eight Mitsubishi i-mievs, two Ford Focus EVs, one Nissan leaf in service since 2013 (though the City had completed electric vehicle testing for several years prior). 22 This is the largest municipal electric fleet in Canada Air Quality and Greenhouse Gas Emissions Maintaining and improving air quality is a priority in the FVRD, as noted in the FVRD' s 1998 Air Quality Management Plan. 24 The use and promotion of electric vehicles offers significant air quality and greenhouse gas emission reduction benefits relative to conventional vehicles. The FVRD's 2004 Regional Growth Strategy's first goal is also to increase transportation choice and efficiency/ 5 which electric vehicles help to address. There is opportunity for the FVRD to lead by example and set progressive corporate policy in its purchase of vehicles. The FVRD also has a 2009 Corporate Greenhouse Gas Emissions Reduction Plan, 26 which strives to reduce emissions from its own operations. 2 City of Chilliwack- Fleet Operations. August Personal Communication. 21 City of Surrey- Engineering Operations. September Personal Communication. 22 City of Vancouver- Equipment Management. October Personal Communication /vancouver.ca/ streets-transportation/electric-vehicles. aspx 24 fvrd.bc.ca/servi ces/ Ai rquality /Documents/1998 FVRDAQManagementPian. pdf 25 rd.be. ca/1 nsi dethefvrd/reglon alp Ianni ng/documents/rgs%20choices%2 Ofor%20our%20Future. pdf 26 The Sheltair Group. Fraser Valley Regional District Corporate Greenhouse Gas Emissions Reduction Plan Page

31 Fraser Valley Regional District Electric Vehicle Business Case How do electric vehicles factor into air quality in the FVRD? Automobiles are a significant source of air pollutants and greenhouse gases in the FVRD. As indicated in the 2010 Lower Fraser Valley Emissions lnventory, 27 on-road vehicles accounted for 45% of all nitrogen oxides emissions in the FVRD, an ozone precursor, and 37% of greenhouse gas emissions, shown in Figures 2-3. Vehicle emissions also contribute significantly to particulate matter, volatile organic compound, and carbon monoxide emissions. Electric vehicles have zero direct emissions as they run from an electric motor. Further, as most of the electricity generated in British Columbia is hydroelectric, there are also minimal upstream air emissions. Figure 2. FVRD Nitrogen Oxides Sources (2010) l 9% On-road Mobile 45% Off-road Mobile Industrial Agricultural Natural Sources Heating L 27 fvrd.bc.ca/services/ AirQu ality /Docum ents/2010lowerfras e rvalleyairemi ssionslnventoryand Forecas tandbackcast.pdf BIPage

32 Fraser Valley Regional District Electric Vehicle Business Case Figure 3. FVRD Greenhouse Gas Sources (2010) 3% On-road Mobile Off-road Mobile Industrial Agricultural Heating Landfills 3% A 2013 Pembina Institute Report 28 analyzed the lifecycle impacts of an electric vehicle versus a conventional vehicle in BC, incorporating production, operation, and disposal considerations. The report used GHGenius software to demonstrate that through an electric vehicle's lifetycle, emissions of air pollutants and greenhouse gases were reduced markedly relative to a conventional vehicle: 82% reduction in greenhouse gases 36% reduction in particulate matter 45% reduction in sulphur oxides 81% reduction in nitrogen oxides 96% reduction in volatile organic compounds 99% reduction in carbon monoxide 28 fraserbasin. bc.ca/ _Library /CCAQ_BCCLEAR/bcclear _project_air _from_ evs-bailie.pdf 9IPage

33 fraser Valley Regional District Electric Vehicle Business Case It is acknowledged that manufacturing of an electric vehicle versus a conventional vehicle has a greater environmental impact, in terms of air contaminant and greenhouse gas emissions. This is largely due to the electric vehicle's battery. For example, production of an electric vehicle compared with a conventional vehicle is estimated to emit: 74% more greenhouse gases 52% more particulate matter 90% more sulphur oxides 85% more nitrogen oxides 33% more volatile organic compounds 141% more carbon monoxide However, the operational life of an electric vehicle running off electricity generated by hydro in BC more than offsets production emissions. Another report estimated that lifecycle greenhouse gas emissions were reduced by 95% in an electric vehicle operating in BC, relative to a gasoline vehicle. 29 At the end of an electric vehicle's life, the battery is recyclable. 30 It is noteworthy that most of the emissions that are associated with electric vehicles occur during the production/manufacturing stage, which occurs in factories where emissions may be controlled more easily than from individual vehicles. While it is acknowledged that emissions from manufacturing impacts air quality in communities where the vehicles are produced, the reduction in emissions across communities where people live would be expected to improve air quality where most people are exposed to them (including in manufacturing communities, if electric vehicles are driven there). 2.3 Needs of FVRD Fleet Vehicle Users The scope of investigating where an electric vehicle would fit into the FVRD fleet was limited to the pooled portion of the fleet during this analysis. This is because the greatest use for passenger vehicles is in the pooled fleet, and because many other segments of the overall fleet require specialized vehicles, such as 4x4 vehicles or trucks with storage capacity, needs that an electric vehicle cannot meet at this time. It is acknowledged that electric vehicles could be considered in other segments of the overall fleet in the future, particularly as electric vehicle capabilities and models are constantly expanding. Further, inclusion of an electric vehicle in the pooled fleet could act as a pilot, to determine how electric vehicles work in the FVRD fleet, and could better inform greater deployment across the overall fleet in the future. There are presently four vehicles in the FVRD's pooled fleet. Based on vehicle trip data collected each time a vehicle was signed out from October 2013 to August 2014, trip statistics were calculated to determine the viability of an electric vehicle with a range of approximately 100 km (advertised ranges are 134 km for the Nissan Leaf and 122 km for the Ford Focus EV; 100 km is selected as a conservative measure that may be experienced during inclement weather conditions. It is the same range the City of Surrey listed as 'worst case' range for their Nissan Leafs) Paperl.pdf I Page

34 Fraser Valley Regional District Electric Vehlcfe Business Case Table 2. FVRD Pooled Fleet Vehicle Trip Data *based on data collected from October 23, 2013-August 21, 2014 These trip results show that 73% of all pooled vehicle trips are less than 100 km (round trip) and would be suitable to be done in an electric vehicle. SO% of trips are less than 25 km. Most trips in a pooled fleet vehicle require a passenger car to attend meetings (this is based on purpose of the trip, collected at the same time as the trip data). Based on this trip data, an electric vehicle would suitably fit into the FVRD fleet as a pooled fleet vehicle. Corporate Electric Vehicle Trials In April 2014, the FVRD was fortunate to have a one week trial of a Mitsubishi i-miev electric vehicle for corporate use, which generated a great deal of excitement and discussion. Similarly, a Nissan Leaf electric vehicle trial was arranged from June 2-7, Verbal reports from staff who tried the cars indicated that they liked the quietness and handling of the vehicles. The Nissan Leaf was more popular than the Mitsubishi i-miev as users reported it felt sturdier and more secure, especially when travelling on the highway. The Nissan Leaf also has a greater range than the Mitsubishi i-miev (134 km versus 100 km) User Experience in Other Fleets The City of Surrey recently completed an electric vehicle user feedback survey in summer 2014, to determine how their five electric vehicles were viewed by their staff. Fifty-six respondents completed the survey. Questions and responses follow City of Surrey- Engineering Operations. September Personal Communication. ll!page

35 fraser Valley Regional District Electric Vehicle Business Case 1. How often do you use the general pool electric vehicles? a. Less than once a week: 69% b. More than once a week: 29% c. Every day: 2% 2. What is your opinion of the electric vehicle as a pool vehicle? a. Positive: 100% b. Negative: 0% 3. Do you feel safe while operating an electric vehicle? a. Yes: 100% b. No: 0% 4. Has low electric vehicle range ever impeded your ability to attend an off-site meeting? a. Yes: 14% b. No: 82% c. No answer/unsure: 4% 5. Do you find the requirement of having to unplug and plug-in the electric vehicle burdensome? a. Yes: 2% b. No: 98% 6. Are there any other aspects of operating an electric vehicle that you find overly complicated or burdensome? a. Yes: 16% b. No: 84% 7. If you had the opportunity to return all pool vehicles to gasoline powered, would you? a. Yes : 4% b. No: 96% The results of this survey show that City of Surrey staff generally find their fleet electric vehicles to be useful, not burdensome, rarely unable to meet their needs in terms of range, and most notably, 96% of respondents would not remove the electric vehicles from their fleet. 3 Finandal Analysi~ 3.1 Methodology In order to determine if an electric vehicle is cost-effective in the FVRD fleet, the lifecycle costs of candidate electric vehicles were compared with conventional vehicles that are already part of the FVRD pooled fleet, as well as with two additional conventional vehicles. The assumptions made in the costbenefit calculations are detailed below. Five different scenarios were calculated, based on differing estimates in service life, annual mileage, and increasing energy prices over time, to determine how much electric vehicles would cost over their service life, compared with conventional vehicles. All estimates are exclusive of applicable taxes. 12 I P age

36 Fraser Valley Regional District Electric Vehicle Business Case Vehicles Considered The two types of vehicles presently in the FVRD pooled fleet are Ford Escapes (three, of which only one is a hybrid) and a Toyota Prius (one, hybrid). Two additional types of conventional vehicles were compared as well, a Ford Focus SE 5-door (this is the model the Ford Focus EV is based on) and Toyota Corolla. While the latter two vehicles are not presently in the fleet, they were included to compare less expensive passenger vehicles, in terms of purchase price, over a lifecycle with existing fleet vehicles and with electric vehicles. The two types of electric vehicle candidates are the Nissan Leaf and Ford Focus EV. These two were selected as they are two of the six battery electric vehicles (vehicles that are 100% electric) currently commercially available in Canada 33 which have a range greater than 100 km, handle well on the highway, have sufficient passenger capacity (can comfortably fit four adults) and are not prohibitively expensive. The other four battery electric vehicles currently available in Canada are the Mitsubishi i MIEV, the smart ForTwo Electric, the BMW i3 and Tesla ModelS. The first two are small cars, with limited passenger capacity, and the BMW i3 and Tesla ModelS costs about $60, ,000 and are thus not currently practical for a public fleet vehicle. To make the comparisons fair, the latest model year available for the four vehicles was used (2015 for all models except the Ford Focus SE 5-door and Ford Focus EV, which only have pricing information for the 2014 models) Annual Mileage 13,000 kilometres per year was assumed, based on the FVRD E3 fleet review conducted in 2008 by the Fraser Basin Council.3<l The City of Surrey's electric vehicle fleet (five vehicles) have similarly logged about 12,000 km/year, indicating that this is a reasonable assumption for an electric fleet vehicle. 35 Additional analyses were completed assuming vehicles travelled 20,000 kilometres per year, to demonstrate how additional vehicle usage would impact the cost comparisons Expected Service Life Based on discussions with the FVRD corporate fleet management team, a seven year service life was determined to be appropriate for FVRD vehicles. Additional analyses were completed assuming vehicles had a ten year service life, to demonstrate how additional time would impact the cost comparisons bca a.com/ campaigns/ electric-vehicles/types-of-vehicles/ e lectric-vehicl e-availbil ity 34 Fraser Basin Council Fraser Valley Regional District Corporate Vehicle 2008 Fleet Review. 35 City of Surrey- Engineering Operations. September Personal Communication. 13JPage

37 Fraser Volley Regional District Electric Vehicle Business Case Energy Prices Gasoline Prices The price of gasoline was assumed to be $1.35/L, which is an intermediate price between what gasoline prices reached in Chilliwack in summer 2014 (-$1.43/L) and current prices (-$1.25/L). 36 As gasoline prices are forecast to increase over time, additional analysis was completed that takes into account the projected increase in gasoline costs over the seven year service life of a fleet vehicle. To predict the future prices, reviewing past gasoline prices shows gasoline costing on average about $1.05/L in 2007 in BC. 32 Thus, from 2007 to 2014, a change in price from $1.05/L to $1.35/L represents a 29% increase in cost. Assuming prices continue on this trajectory, prices could reach $1.74/L by Supposing that happens, and equally dividing the rate of increase over the seven years, additional analysis was completed. Electricity Prices The present electricity cost for the FVRD is $0.0748/kWh based on BC Hydro large General Service Conservation Rate Part 1, 37 which is a combination of $ per kwh for the first 14,800 kwh consumed, and $ per kwh for additional electricity consumed. Based on the FVRD office's (45950 Cheam Ave, Chilliwack) historical BC Hydro bills, approximately 14,800 kwh are consumed at each rate each month (e.g. October 3, 2013 bill shows 14,800 kwh at the higher rate, and 14,634 kwh at the lower rate), indicating that an average of the two rates is an appropriate per kwh cost estimate. As with gasoline, electricity prices are projected to increase over time. Assuming that electricity rates increase at the same rate as gasoline (projected to be 29% over the next seven years, a reasonable assumption given that in 2013, a 28% increase over five years was indicated by the Provincial Government) 38, the electricity cost could reach $0.11/kWh by Assuming that happens, and equally dividing the rate of increase over the seven years, additional analysis was completed Fuel Efficiency Fuel efficiency for all vehicles, gasoline and electric, were based on US Department of Energy published values. 39 The values selected are for city-highway combined driving, the projected usage of the fleet vehicles. Values are provided in L/km for gasoline powered vehicles, and kwh/km for electric vehicles, so no conversion between the two types of energy units was completed. The US Department of Energy's value for the Nissan leaf was also validated. During the June 2014 one week trial the FVRD had with the Nissan Leaf, approximately 400 km were driven, and 70.5 kwh of electricity were consumed, based on the charging station data. This equates to kwh/km, which is actually slightly more efficient than the published value of kwh/km chart.aspx 37 / ro.com/ accounts-bill in gf customer-service-business/business-rates-overview /business-ratesprices.html 38 can ad a/british-col umbia/bc-hyd ro-rates-to-i ncrease-28-per-cent -over-5-years fueleconomy.gov/ 14 I Page

38 Fraser Valley Regional District Electric Vehicle Business Case For the purposes of this business case, it is assumed that fuel efficiency remains the same throughout the service life of the vehicle Manufacturer's Suggested Retail Price The manufacturer's suggested retail price for each of the four vehicles compared was based on the manufacturer's website for the respective vehicle, as of September 30, The newest vehicle year available for each model was selected, 2015 for all except the Ford Focus SE 5-door and Ford Focus EV, as only 2014 pricing was available on the date of price information retrieval. The base model for each vehicle type was selected. Table 3. Manufacturer's Suggested Retail Price for Four Vehicles Compared Annual Maintenance Gasoline Vehicles (Ford Escape, Toyota Prius, Ford Focus, Toyota Corolla) As no compiled maintenance cost information for existing FVRD fleet vehicles could be acquired, annual maintenance costs or estimates for other fleets were reviewed, and the average maintenance cost used. ~ 0 /bpfoc.ford.ca/2015-ford Escape7zipcode=V2PlN6#/Exterior/Config%SB%7CFord%7CEscape%7C2015%7Cl%7Cl.%7ClOOA.UOF FWD. RETAIL.S.% toyota. ca/toyota/ en/build-p rice/prs#mod e I s-o pti ons 42 ford.cal cars/focus/models/ 43 http :f/www. toyota. ca/toyota/ en/build-price/ cor#m odels-optio ns 44 nissan.ca/b u il dyou rn issan/ colors/index 45 /bpfoc.ford.ca/2014-ford Focus/1branding=l&lang=en#/Exterior/Config%SB%7CFord%7CFocus%7C2014%7Cl%7Cl.%7C.P3R... HAT.ELC.RET.44H.BEV.%SD 15 I Page

39 Fraser Valley Regional District Electric: Vehicle Business Case The City of Vancouver standard conventional passenger automobile annual maintenance cost has been $813.95/vehicle/year. 46 This is based on ten years of actual maintenance costs. The City of Chilliwack estimated annual gasoline vehicle maintenance costs to be $550/vehicle/year in their 2012 electric vehicle cost comparison spreadsheet. 47 The Canadian Automobile Association estimates that vehicle maintenance costs $ per kilometer driven. 48 At 13,000 km/year, maintenance costs would be $690.73/year. The average of these three sources of information was used as the annual maintenance cost for a gasoline vehicle: $ Electric Vehicles (Nisson Leaf and Ford Focus EV) Similar to the annual maintenance cost estimates for gasoline vehicles, maintenance costs for electric vehicles were drawn from a number of sources and averaged. The City of Vancouver average annual maintenance cost for their thirty-one electric vehicles (twenty-eight Mitsubishi i-mievs, two Ford Focus EVs, and one Nissan Leaf) has been $105/vehicle/year. 49 The City of Chilliwack's projected annual maintenance cost for their one Ford Focus EV was $260/vehicle/year. 50 The City of Surrey's actual annual maintenance cost for one Nissan Leaf has been $500/year. However, the City of Surrey projected that with additional Nissan Leafs in the fleet, the average annual maintenance cost per vehicle is likely to reduce to $250/vehicle/year. 51 The average of these three sources of information was used as the annual maintenance cost for an electric vehicle: $ Electric vehicles are equipped with regenerative brakes, which leads to significantly longer brake pad life relative to conventional friction-based brakes. One article estimates that electric vehicle brakes will require servicing at one third the frequency of conventional brakes. 5 2 The most expensive component on an electric vehicle is its battery. Both Nissan and Ford offer eight year/160,000 km warranties on their electric vehicle batteries. 53 ' 54 On a seven year service life in the FVRD fleet, battery problems would be covered under warranty. Further, Nissan USA has announced electric vehicle battery replacement pricing at $5499 USD. 55 This means that after the eight year warranty has ended, should the FVRD still possess the electric vehicle, it could replace the battery for a 46 Oty of Vancouver- Equipment Management. October Personal Communication. 47 City of Chilliwack- Fleet Operations. August Personal Communication Driving_ Cost_ English_2013 _ web.pdf 49 City of Vancouver- Equipment Management. October Personal Communication. 5 City of Chilliwack- Fleet Operations. August Personal Communication. 51 City of Surrey- Engineering Operations. September Personal Communication rreports.com/ news/ _mechanics-worry-electric-car-brakes-will-ruin-my-business 53 / WI B. pdf ~ nt-chemistry 16 I P age

40 Fraser Valley Regional District Electric Vehicle Business Case fraction of the cost of a new electric car should that need arise. The battery price is also projected to decrease over time, as electric vehicles become more common. It is acknowledged that electric vehicle batteries also degrade over time, similar to many other batteries, such as those in cell phones. Nissan has an additional 5-year/100,000 km warranty to protect against battery degradation (if the battery degrades more than 70% during that time, it will be replaced free of charge}. Similar to a cell phone or other battery, degradation of an electric vehicle battery does not mean it cannot be used, it simply means the range will be slightly reduced over the long term. Additional analyses were done incorporating projected rises in fuel/electricity costs. For these calculations, an annual inflation rate of 2% 56 was applied to maintenance costs as well Insurance Insurance is based on the price of the vehicle and there is no insurance premium penalty or benefit for an electric vehicle in BC at this time. The British Columbia Automobile Association (BCAA) online calculator 57 was used to estimate insurance costs for the six vehicle models compared. Rates of coverage were based on existing FVRD fleet vehicles (2012 Ford Escape and 2007 Toyota Prius), which included third party liability of $5,000,000, a $500 collision deductible, and a $300 comprehensive deductible. The BCAA calculator was used to estimate insurance premiums for the two existing vehicles. As the calculator underestimated the actual cost quite significantly, a correction factor was developed, which was applied to the cost estimates generated for the six new vehicle models compared. Example: the BCAA calculator estimated annual premiums of $ for the 2012 Ford Escape and $ for the 2007 Toyota Prius, whereas the actual current cost is $1883 and $ for each vehicle, respectively. Thus, the difference between the estimate and actual cost is 93% for the Escape and 58% for the Toyota, an average of 76%. Therefore, a 76% markup was applied to the BCAA estimate to use as an insurance cost estimate. Table 4. Annual Insurance Cost Estimates for Four Vehicles Compared 56 kofcana d a.ca/ c:o re-fu n c:ti ons/ monetary-policy /inti ation/ 57 overview I quick-quote 58 Based on Insurance Corporation of British Columbia insurance papers in the two vehicles. October Page

41 Fraser Valley Regional District Electric Vehicle Business Case Additional analyses were done incorporating projected rises in fuel/electricity costs. For these calculations, an annual inflation rate of 2% 25 was applied to insurance costs as well Resale or Salvage The E3 fleet example completed for the FVRD in 2008 estimated that vehicle values depreciate at a rate of 30% in their first year, and 20% in each subsequent year. 59 Using those assumptions, vehicle resale or salvage values are then estimated at 18% of the purchase price after seven years and 9% after ten years. It was assumed that this value would apply to both conventional gasoline vehicles and to electric vehicles Rebates or Incentives There are presently no rebates or incentives for electric or fuel efficient vehicles available in British Columbia. There had previously been a $5000 incentive available under the clean energy vehicle program, but funds were depleted in that program as of February 14, Additional funding for incentive programs is not foreseen Carbon Offsets While the FVRD does not currently purchase carbon offsets, there is the possibility that the organization may choose or be required to do so in the future. Additional analysis, not included in the lifecycle cost analysis, was completed to determine the cost of purchasing carbon offsets for greenhouse gas emissions from the gasoline vehicles versus the electric vehicles. The current BC Carbon Tax rate is $30/tonne 61, and was used as the cost of offsetting greenhouse gas emissions. As per Natural Resources Canada's calculations, 2.4 kg of carbon dioxide equivalent 62 was assumed to be emitted per litre of gasoline consumed. No carbon dioxide is emitted from electric vehicles. While there may be some carbon dioxide emissions from electricity generation upstream in British Columbia (while over 90% of electricity generation is renewable and emits little or no carbon dioxide emissions, it is not 100% greenhouse gas emission free 63 ), there are also emissions associated with extracting and refining oil to make gasoline. The offsets are only based on the energy consumed by the prospective FVRD vehicle, not the total emissions of producing that type of energy. 3.2 Results The lifecycle costs of the four vehicles were compared under five different scenarios. 59 Fraser Basin Council Fraser Valley Regional District Corporate Vehicle 2008 Fleet Review fin.gov.bc.ca/tbs/tp/climate/carbon _ tax.htm 62 I oee.n rcan.gc.ca/ p ubi ications/tran sportatio n/fuel-guid e/2007 I calculating -co2.cf m?attr= D/Eiectricity /supply /Pages/default.aspx 18 I Page

42 Fraser Valley Regional District Electric Vehicle Business Case Table 5 below shows the results of scenario #1, the most likely scenario based on current driving patterns of FVRD vehicles travelling 13,000 km/year and fleet management practices of disposing of vehicles after seven years. The table below shows that over a service lifetime, an all-electric Nissan Leaf is less expensive than existing fleet vehicles, the Ford Escape and Toyota Prius, by about $3000. The Ford Focus EV is approximately the same cost as the Ford Escape and Toyota Prius. The Ford Focus SE and Toyota Corolla are the least expensive options. 19 I Page

43 Fraser Valley Regional District Electric Vehicle Business Case Table 5. Scenario #1-lifecycle Cost Comparison of Six Vehicles with a 7 Year Service life, Driven 13,000 km/year Fuel type Gasoline Gasoline Gasoline Gasoline Electric Electric Average annual mileage (km/year) 13,000 13,000 13,000 13,000 13,000 13,000 Expected service life (years) Average 'fuel' economy {cityhighway combined) per km 0.09 L L 0.076l L kwh kwh Cost of gasoline {$/L) N/A N/A Cost of electricity ($/kwh) N/A N/A N/A N/A Cost per kilometer $ $ $ $ $ $ Annual gas/electricity cost $ $ $ $ $ $ Annual maintenance cost $ $ $ $ $ $ Annual insurance cost $ $ $ $ $ $ Manufacturer's suggested retail $23,499 $26,155 $19,699 $15,995 $33,788 $36,199 ~ $ ~ ~ ~ ~ ~ l $45, $45, $41, $39, $42, $45, I Page

44 Fraser Valley Regional District Electric Vehicle Business Case Three additionallifecycle cost scenarios were calculated, using different annual mileage figures (13,000 km/year or 20,000 km/year) and different service life lengths (7 years and 10 years), shown in Table 6. All other assumptions were the same as noted above in Table 5 and the methods section prior (including the resale/salvage value decreasing to 9% of the vehicle purchase price after 10 years in service). The lifecycle cost under these four scenarios shows that the Nissan Leaf is the least expensive vehicle under scenarios #3 and 4, when 20,000 km/year is driven. The Nissan leaf is less expensive than the existing Ford Escape and Toyota Prius under all scenarios. The Ford Focus EV is less expensive than all conventional vehicles under scenarios #3 and 4, and less expensive than the existing Ford Escape and Toyota Prius under scenario #2. Despite a higher purchase price (by $15,500), the Ford Focus EV is more cost effective than the Ford Focus SE under scenarios #3 and 4. Notably, the savings from electric vehicles increase with time in the fleet and kilometers driven, due to their substantially lower 'fuel' costs (electricity) and lower annual maintenance costs. The difference between the Nissan Leaf and the Ford Escape in scenario #4 is more than $14,000. Table 6. Ufecycle Cost Comparison of Six Vehicles across Four Scenarios Scenario #1 13,000 km/year, 7 rs - Scenario #2 13,000 km/year, 10 rs Scenario #3 20,000 km/year, 7 years Scenario#4 20,000 km/year, 10 years $45, $45, $41, $39, $42, $45, $58, $58, $52, $50, $51,869.23* $55, $51, $48, $46, $43, $43, $46, $67, $62, $59, $57, $52,850.98* $56, *After ten years, the electric vehicle battery warranty will hove lapsed. Should a new battery be required, the current cost is $5499 USO, which would still make the Nisson Leaf less expensive than the Ford Escape and Toyota Prius. 21 I Page

45 Fraser Valley Regional District Electric Vehicle Business Case Scenario #5 was completed incorporating predicted costs of inflation and energy price increases, as described in the assumptions in the methodology section. Table 7 again shows that the Nissan Leaf is less expensive than the Ford Escape and Toyota Prius, and the Ford Focus EV is less than those two conventional vehicles as well. Table 7. Scenario #5 Lifecyde Cost Comparison of Six Vehicles, Including Projected Energy Price Increases and Inflation Fuel type Gasoline Gasoline Gasoline Gasoline Electric Electric Average annual mileage 13,000 13,000 13,000 13,000 13,000 13,000 Expected service life (years) Average 'fuel' economy (cityhighway combined) per km 0.09 L L L L kwh kwh Cost of gasoline ($/L) N/A N/A Cost of electricity ($/kwh) N/A N/A N/A N/A Fuel costs over 7 years $12, $ $ $ Maintenance costs over 7 years $5, $5, $5, $5, $2, $2, Insurance costs over 7 years $10, $14, $11, $12, $12, $13, Manufacturer's suggested retail ce..._... Resale/salvage value $23,499 $26,155 $19,699 $15,995 $33,788 $36,199 $ $ $ $ $ $ Total life Cycle Cost (7 years) $47, $47, $43, $41, $43, $46, Page

46 Fraser Valley Regional District Electric Vehicle Business Case Table 8 shows the service life greenhouse gas emissions from the vehicles. This table demonstrates that should the FVRD choose or be required to purchase greenhouse gas offsets, gasoline (and diesel) consuming vehicles will have an even greater cost over their lifetime than is demonstrated through scenarios #1-5 above. Table 8. Service life Greenhouse Gas Emissions (as C0 2 -equivalent) and Offset Cost Ford EscapeS FWD (2015) $ Toyota Prius (2015) $ ,000 Ford Focus SE 5-door (2014) $ km/year; 7 years Toyota Corolla (2015) $ Nissan Leaf (2015) Ford Focus EV (2014) Ford EscapeS FWD (2015) 18, $ Toyota Prius (2015} $ ,000 Ford Focus SE 5-door (2014} 15, $ km/year; 10 years Toyota Corolla (2015} 14, $ Nissan Leaf (2015) 0 0 $0 Ford Focus EV (2014} 0 0 $0 Under five scenarios explored, electric vehicles are financially comparable to existing conventional gasoline fleet vehicles over their service life cycle. In fact, the Nissan leaf was the least expensive vehicle of the six considered under some scenarios, and less than existing fleet vehicles under all scenarios. These findings were determined even though the purchase cost of an electric vehicle is higher than a gasoline vehicle and even though there is no incentive program available for electric vehicles in BC currently. These calculations demonstrate that not only is consideration of electric vehicles for the FVRD 23 I Page

47 Fraser Valley Regional District Electric Vehicle Business Case fleet a sound fiscal decision, it is a responsible one with potential to save money, relative to conventional gasoline vehicles. If the FVRD adheres to its seven year disposition guideline for fleet vehicles, electric fleet vehicle batteries, the most expensive mechanical component of the vehicles, would be covered under warranty for the duration of their service life, minimizing financial risk. These findings are consistent with another electric vehicle fleet modelling project conducted by FleetCarma and the Fraser Basin Council, which estimated the financial benefit of electrifying a fleet would be $15,968/vehicle over a seven year service life (this analysis was conducted when the $5000 incentive was in place, so a more comparable number would be $10,968). 64 The five scenarios explored also demonstrate that the hybrid vehicle, the Toyota Prius, is considerably less expensive than the non-hybrid vehicle (Ford Escape) over the life cycle of the vehicle due to its significantly betterfuel efficiency. Therefore, hybrid vehicles should be given special consideration in purchasing decisions for other vehicles. 4 Discussion This business case describes the history of electric vehicles, the current vehicles on the market, their uptake in BC, air quality and climate change benefits, and lifecycle costs of electric vehicles compared with existing conventional vehicles. There are many modern models of electric vehicles available, a number of which have been available for several years. Electric vehicles produce zero emissions, and are an excellent choice to reduce emissions of harmful air contaminants and greenhouse gases. It should be noted that the existing FVRD fleet vehicles are older than 2015, and thus are likely less fuel efficient (due to both their model year and age) than the 2015 models compared. Therefore, the air quality and financial benefits due to reduced fuel consumption from a prospective electric vehicle are likely to be even greater than those reported in this business case, which compared new electric vehicles to new conventional vehicles. The financial analysis of this business case was conducted using conservative, yet realistic assumptions for the costs of an electric fleet vehicle compared with conventional vehicles. It is possible that the financial benefits for using an electric vehicle will be even greater than reported here. Electric vehicle models and capabilities are constantly changing and improving. For example, Nissan is expected to come out with a leaf with greater range (-200 km on a charge) in the next few years, 65 and Testa is announcing it plans to come out with a less expensive model, that still has considerable range (over 300 km) in the next few years as well. 66 However, automobile manufacturers are less likely to continue developing improved electric vehicles unless they observe sales and support for their current models. Thus, it is important that individuals and organizations who support the technology utilize the vehicles if they can, to encourage and hasten improved electric vehicles on a commercial scale. As 64 Paperl.pdf 65 http :1/ com/news/ _new-2017-nissan-leaf-more-detai Is-on-new-styling -range- and-i nfiniti-ele ctric-too 66 cnet. com/ news/testa-gets-sporty-with-a-new-electric-car -the-model-3/ 24 1 Page

48 Fraser Valley Regional District Electric Vehicle Business Case demonstrated in this business case, even given current electric vehicle capabilities, there are still sound financial and environmental reasons for starting to adopt electric vehicles at the present time. While this business case focused on the economic and practical viability of an electric vehicle in the FVRD fleet, it is important to note that pursuit of any good or service should consider the triple bottom line: economic, environmental, and social implications. This business case demonstrates that electric vehicles are an economically sound option for the FVRD fleet. As demonstrated in this report, electric vehicles are also an excellent environmental choice, as they produce a small fraction of the lifecycle air pollutant and greenhouse gas emissions relative to conventional vehicles. Given that vehicles account for a large portion of air pollution sources in this region, the FVRD can lead by example in reducing emissions from its own operations. Finally, electric vehicles are a socially responsible option. They reduce harmful air pollutants and can help to improve public health, they are very quiet and would reduce noise pollution, and the money spent on electricity is more likely to stay in BC where the electricity is generated. Overall, electric vehicles in the FVRD fleet offer a positive economic, environmental and social option, compared with conventional vehicles. Given its current charging infrastructure of one station with two charge ports, the FVRD fleet could currently accommodate one electric vehicle without incurring additional capital cost for more charging stations. This is because the second port should be left available for public use, as per the original intention of installing the station. If the FVRD wanted to acquire more than one electric vehicle, additional charging infrastructure options should be explored. An electric fleet vehicle will also require some education of the users on its capabilities and charging requirements. A corporate vehicle usage policy will need to be developed and implemented. Development of such a policy is already slated to occur through the larger fleet management program. As a signatory to the Provincial Climate Action Charter, the FVRD is working toward climate neutrality. 67 Replacement of one conventional gasoline vehicle (a Ford Escape with fuel efficiency of 9 l/100 km driven 13,000 km/year) with an electric vehicle would reduce corporate greenhouse gas emissions by approximately 2.8 tonnes/year. The Pacific Coast Action Plan on Climate and Energy between the Governments of British Columbia, California, Oregon, and Washington, signed October 2013, contained an action to expand use of zero emission vehicles, aiming for 10% of new vehicle purchases in public and private fleets by Acquiring one or more electric vehicles for the FVRD's fleet will contribute toward the Province achieving this goal. There may be an opportunity for the FVRD to act as a model fleet through this program, and to be a fleet leader. 4.1 Alternatives Alternatives to purchasing battery electric vehicles for the FVRD pooled fleet include considering plug in hybrids, hybrids, or status quo (mostly conventional gasoline vehicles) jwww.cscd.gov. be. ca/lgd/library/cac_signatories_2011. pdf 68 stcollabora tive.o rg/docu ments/p acific%2 0Coast%20C1 imate%20action%2 OPia n.pdf 25 I Page

49 Fraser Valley Regional District Electric Vehicle Business Case Plug-in Hybrids Plug-in hybrids, such as the Chevrolet Volt or Toyota Prius Plug-in would provide some of the benefits of an electric vehicle, but to a reduced degree (as their electric range is much less than a battery electric vehicle, and therefore would be consuming gasoline on longer trips). Additionally, the Chevrolet Volt (2015) has a higher purchase price than any of the six vehicles considered in this business case ($38, ). As such, the economic benefits of a plug-in hybrid electric vehicle would also not be realized to the same degree as with a battery electric vehicle. The Toyota Prius Plug-in (2015) is similarly relatively expensive, costing more than the Nissan Leaf (but less than the Ford Focus EV) at $35, Therefore, plug-in hybrids would have less of an air quality and climate change benefit than a batteryelectric vehicle (but would still have lower emissions than a conventional gasoline vehicle) and would be expected to have minimal financial benefit over their service life, relative to both conventional vehicles and battery electric vehicles. Hybrids Another alternative is to pursue hybrid vehicles. The five scenarios explored also demonstrate that the hybrid vehicle, the Toyota Prius, is considerably less expensive than a non-hybrid vehicle {Ford Escape) over the life cycle of the vehicle due to its significantly better fuel efficiency. This is also true when comparing the same vehicle, hybrid versus non-hybrid versions. For example, the 2012 Ford Escape FWD Hybrid has fuel efficiency of 7.4 L/100 km, while the 2012 Ford Escape FWD has a fuel efficiency of 9.8 L/100 km (note: there is no 2015 Ford Escape hybrid option). 71 Therefore, hybrid vehicles should be given significant consideration in purchasing decisions for other vehicles,.where a battery electric vehicle is not suitable. For example, for other fleet vehicle needs, such as where a pickup truck is required, consideration of any hybrid options available at that time should be pursued. Less Expensive Conventional Vehicles This business case demonstrates that considering passenger vehicles with lower purchase prices, such as the Ford Focus SE 5-door and Toyota Corolla, under many scenarios will result in considerable financial savings relative to existing fleet vehicles {Ford Escape and Toyota Prius). Smaller passenger vehicles will also save on fuel consumption and emissions relative to the Ford Escape, but will emit more than both the Toyota Prius (hybrid) and electric vehicles. As such, less expensive and more fuel efficient conventional vehicles should be considered, after electric, plug-in hybrid, and hybrid options have been exhausted. In addition, the often limited seating capacity of the cheaper sub-compacts makes them less likely to be driven in cases where more than two staff persons are attending an event. Status Quo Finally, the last alternative is to continue with the status quo: having most vehicles in the fleet be conventional gasoline vehicles, some of which are not as fuel efficient as other passenger vehicles (for 63 ca/gm/ english/vehicles/ chevrolet/volt/ overview?widget-pc=v2 P+ 1 N6& tsfsc= ! toyota.ca/toyota/ en/build-price/phv#mode Is-options I Page

50 Fraser Valley Regional District Electric Vehicle Business Case example, the Ford Escape uses 9 L of gasoline per 100 km, the Toyota Corolla uses 7.4 l of gasoline per 100 km). This option has adverse impacts on air pollutant and greenhouse gas emissions, and is also not as cost-effective over a vehicle lifecycle as an electric vehicle. As such, continuing with the existing case is not recommended. 4.2 Limitations and Uncertainties Efforts have been made to address as many limitations and uncertainties with incorporation of electric vehicles into fleets as possible in this business case. One limitation is uncertainty over usage and annual mileage on an electric vehicle. Scenarios #1-2, and 5 in this business case assumed all vehicles would be driven 13,000 km/year, while scenarios #3 and 4 assume 20,000 km/year. As an electric vehicle would need to charge for several hours at a Level 2 charging station after completing a longer trip, it is not known whether an electric fleet vehicle would achieve these annual mileage projections (that is, multiple long trips could not be completed in a day with an electric vehicle, where they could be with a conventional vehicle). However, the City of Surrey's actual fleet usage data shows that their electric vehicles were used at least 12,000 km/year, suggesting that the assumption of 13,000 km/year is reasonable. Another uncertainty is the actual maintenance cost for electric vehicles over their service life. The numbers used to develop the estimate deployed in the five scenarios were based on other fleets with electric vehicles, considered the best available data. However, the oldest vehicle in any of the fleets reviewed is only three years old, thus it is unknown what the maintenance cost of that vehicle will be after it is seven years old. Based on the components of the electric vehicle, and taking into consideration the most expensive component (the battery), it is projected that maintenance costs should be small relative to a conventional gasoline car. Even if the battery were to require replacement (extremely unlikely under a seven year service life, as the two electric vehicles considered come with an eight year battery warranty), the replacement battery prices for the Nissan Leaf are known, and would still fit into a financially sound model. It should be noted that the actual maintenance costs for conventional gasoline vehicles in the FVRD fleet are also unknown, and likely to be variable from vehicle to vehicle and year to year. The insurance costs used in these calculations are also projections, based on a quick estimate from the BCAA website multiplied by a correction factor. While the exact insurance costs may be uncertain, they demonstrate that electric vehicle insurance costs are not substantially different from conventional vehicle insurance costs, and should not factor strongly into the fiscal decision of whether to acquire and electric vehicle or not. The resale or salvage value of an electric vehicle is also unknown. This is because most currently available electric vehicles are less than seven years old and have thus not completed their service life. Given that battery replacement prices have been announced for some electric vehicles, which are cost effective, and that an electric vehicle at the end of its life would still hold some value from its recoverable metal, the assumptions made in this business case are probably reasonable. This business case has been developed for the FVRD fleet vehicles specifically, incorporating trip data, annual mileage, fuel and insurance prices specific to this organization and geographic location. However, this business case can be adapted to other fleets. 27 I P age

51 Fraser Volley Regional District Electric Vehicle Business Case 5 Conclusions Pursuit of one or more electric vehicles in the FVRD fleet has many benefits and is feasible. Electric vehicles provide clear environmental benefits, as they produce zero emissions, and would therefore help to improve air quality and reduce the region's contribution to global climate change due to greenhouse gas emissions. Electric fleet vehicles would also demonstrate that the FVRD is taking a leadership role in improving air quality and would raise awareness of electric vehicles in the region. In the FVRD pooled fleet, electric vehicles would also meet the needs of most of the users. FVRD trip data shows that 73% of fleet vehicle trips are 100 km or less, a conservative range limit for the electric vehicles being considered. Further, two electric vehicle trials at the FVRD had staff excited and enthusiastic about electric vehicles. A City of Surrey survey on pooled fleet users further emphasized than when electric vehicles enter the fleet, the vast majority of users are positive toward them, and do not find their range or plugging in requirements to be disadvantageous or burdensome. Electric vehicles are a fiscally responsible choice. This business case compared electric vehicles to hybrid and conventional gasoline passenger vehicles, and found that despite the higher purchase price for electric vehicles, over a seven year lifecycle, electric vehicles generally cost the same amount, or less, than a conventional vehicle. The Nissan Leaf would save more than $3,000, or nearly 10%, compared to the Ford Escape over a service life under the most likely scenario. If the vehicles remained in service longer (ten years instead of seven) and were driven more (20,000 km/year instead of 13,000 km/year), the financial benefits of electric vehicles were even more pronounced, due to the considerably cheaper cost of electricity compared with gasoline, and less expensive maintenance. When considering the triple bottom line, electric vehicles are an economically, environmentally, and socially responsible choice for the FVRD fleet. It is concluded that the FVRD incorporate this electric vehicle business case as a reference document in the fleet management program, and consider electric vehicles or alternatives each time fleet vehicles need to be replaced. 28 l Page

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