THE PORT OF LOS ANGELES

Transcription

1 THE PORT OF LOS ANGELES Executive Director's Report to the Board of Harbor Commissioners DATE: MARCH 24, 2010 FROM: CLEAN TRUCK PROGRAM CONTRACT WITH VISION MOTOR CORPORATION OF SANTA MONICA, CALIFORNIA TO PURCHASE A ZERO EMISSION CLASS 8 HYBRID ELECTRIC TRUCK SUMMARY: Staff requests the award of a Purchase Order Contract with Vision Motor Corporation, Santa Monica, California for a zero emission Class 8 hybrid electric truck, which would be used for moving the City of Los Angeles Harbor Department's (Harbor Department) Transporter Exhibit. The resulting zero emission truck would be one of only a handful of zero emission Class 8 hybrid electric trucks operating in the world. The cost to purchase the zero emission truck would not exceed $280,000 including sales tax, of which approximately $180,000 is reimbursable from $1.7 million that has been authorized for the Harbor Department from a United States Department of Energy's (USDOE) Energy Efficiency and Conservation Block Grant (EECBG). Staff recommends approval of this Purchase Order Contract due to the environmental benefits and long-term economic advantages to the Harbor Department and the City of Los Angeles. The zero emission Class 8 hybrid electric truck would be maintained and operated by the Harbor Department's Construction and Maintenance Division. RECOMMENDATION: It is recommended that the Board of Harbor Commissioners: 1. Approve the Purchase Order Contract to purchase a zero emission Class 8 hybrid electric truck from Vision Motor Corporation and authorize said expenditures (Transmittal 1); 2. Authorize the Executive Director to execute to the Purchase Order Contract for and on behalf of the Board; and 3. Adopt Resolution No.

2 MARCH 24, OF 6 EMISSION CLASS 8 HYBRID TRUCK ==L.;..;:...;:;;";":";:';' - On Novem 2006, the Harbor Department and of Long Beach jointly adopted the Clean Air Action Plan (CAAP), a comprehensive program with initiatives ned to substantially reduce air emissions from major sources in the two ports over a five-year period. Emission sources by the CAAP include ships, trains, handling equipment, harbor craft, and duty trucks. Clean Truck is the initiative that emissions from heavy-duty trucks, specifically drayage trucks move cargo in of marine the Port. is a of bans by the Harbor gradually restrict older, more polluting trucks from operating at Port marine terminals until eventually drayage trucks operating at Port will be requ to meet U.S. Environmental Protection Agency (USEPA) 2007 Heavy Duty standards. In ition, the program was designed to the use of fuel trucks. Harbor Department determined that technology Port to footprint uction all major sources by the year goals beyond the CAAP by including substantial greenhouse emissions (GHG) consistent with In light of future emission uction needs, the Harbor Department began a zero emission 8 truck testing program with Balqon in late has developed a battery-operated 8 truck with a in excess 100 The Harbor Department plans to in deploying the truck for use on terminals in 1 However, given the Harbor Department's the use of zero emission staff wanted whether other uipment manufacturers exist that have a 100 mile range zero truck cu lable for immediate demonstration in duty goal is to establish a demonstration program for use of Balqon and other zero trucks in Port area, plus related uses in Southern California. As of this plan, the Harbor Department partnered with University of California (UC Center for Reduction Technologies In evaluate performance vehicles as they are deployed for demonstration. the zero is currently sought from state and sources.

3 DATE: MARCH 24, 2010 PAGE 3 OF 6 ZERO EMISSION CLASS 8 HYBRID ELECTRIC TRUCK Selection Process - To identify other possible zero emission truck manufacturers with trucks immediately available for demonstration, staff issued a Request for Proposals (RFP) for zero emission Class 8 Electric/Hybrid Electric Trucks on October 20, Key requirements set forth for proposers were for a truck that: (i) could operate for at least 100 miles in zero emission mode, and (ii) is United States Department of Transportation (DOT) certified for operation on public roads. These requirements were designed to identify zero emission technology that could immediately be used in short haul drayage as part of staff's planned demonstration program. Fil-Mor Express, Inc., US Hybrid Corporation, Balqon Corporation, and Vision Motor Corporation, submitted proposals by the proposal due date, November 10, All of the proposers presented promising vehicles with substantial emission reductions capabilities, but as shown in the table below, two of them could not operate in zero emission mode for the requisite 100 miles, and one of the proposers did not yet have DOT certification for its vehicles. The remaining proposer, Vision Motor Corporation, offered a hybrid electric truck that is immediately available, and uses a hydrogen fuel cell to continuously charge an on-board battery pack in order to help extend its operating range. The truck is capable of 200 miles of operation. The truck is assembled in a Southern California Freightliner assembly facility, and features a limited Freightliner warranty for its operation. Staff recommends, based on the results of the RFP, the purchase of the proposed Vision Motor Corporation truck as an early element of its zero emission demonstration program. The table below summarizes this evaluation: U.S. Department of Applicant At least 100 mile range in zero emission mode? Transportation certified for onroad operation? Fil-Mor Express, Inc., No Yes US Hybrid Corporation No Yes Balqon Corporation Yes No Vision Motor Corporation Yes Yes The cost to purchase the truck would not exceed $280,000 ($255,000 plus sales tax), of which $180,000 of this cost is reimbursable from $1.7 million that has been authorized for the Harbor Department by the City of Los Angeles from the USDOE's EECBG. As a

4 MARCH 24, 2010 PAGE 4 OF 6 SUBJECT: RESOLUTION NO. - AWARD ORDER ZERO EMISSION CLASS 8 HYBRID TRUCK rchase and the hybrid propulsion the Harbor Commissioners EECBG grant will be use the remaining $1 million pa procurement of zero emission reduction technologies. was removed from the agenda a contract with a stable and cost March 25, 2010, the Harbor Wilmington, CA to provide hyd diesel fuel. iture of $480,000 for the item being considered by 000 from the $1.7 million develop a plan to incentivize the further efficiency and emission March 18, 2010 Board meeting because provider had not yet been executed. On an agreement with Air Products of for one year comparable to that of Benefits/Savings - Staff that a Vision Motor Corporation truck be purchased for moving: (a) the Harbor Department's Transporter Exhibit throughout Southem California, and (b) heavy u for Harbor Department's Construction and Maintenance Division move the Transporter Exhibit, the Harbor Department is currently leasing an LNG truck from a trucking company. The cost of leasing LNG truck for movement of the approximately $100,000 for past year under an Ag Counties Express. The Vision Motor Corporation Truck would provide Harbor Department an immediate savings of $100,000 per r. Also, while used for movement of the performance of Vision Motor truck would be evaluated by UC Riverside's CE-CERT as an early of the planned zero emission cost savings and opportunity to begin zero recommends the purchase Vision emission Motor Corporation truck Contract No. 1 Corporation. Further, Motor Corporation zero be available at the same 1 is the proposed Department and opt to purchase a 8 hybrid electric truck, the cost of price through March 1, The proposed action is a Pu Contract to purchase a zero emission hybrid electric truck Motor Corporation, which will benefits and long-term to the Harbor Department and Los As an ministrative action, the Director of Environmental has determined action is exempt from the req

5 DATE: MARCH o 5 OF 6 SUBJECT: RESOLUTION NO. - AWARD OF PURC ORDER CONTRACT WITH VISION MOTOR CORPORATION TO PURC A N CLASS 8 HYBRID ELECTRIC K California Angeles City under Article II, 2(f) of the Los This action will no d employment effect in the FINANCIAL IMPACT: This Purchase Order would the Harbor Depa reimbu a of the purchase price, In project specifications, the incremental cost of the zero em 8 hybrid electric truck is reimbu approximately $180,000, As a result, $100,000 is the approximate to the Harbor Department Ongoing operating and maintenance are expected to be $2,500 annually and will by the Harbor Department. In ition, ownership of the proposed zero em Class 8 hybrid electric truck adding the truck to the Harbor insurance at an annual premium of, A City employee will drive the truck when in use by the and Maintenance Division, Program, purchasing the proposed truck the existing would not advance Technology Advancement The Harbor lease an LNG truck for movement of the Transporter from Southern trucking company, which currently cost the Harbor $100,000 per cost of the Vision Motor Corporation truck is reimbursable, the Harbor would effectively eliminate a opportunity of $100,000 minus costs (fuel and maintenance) if Vision Industries truck is not pu -=-.;::;..::::.:...::::..:::::..>..=-=-:..-.;;;;;";",;",;:;";;,:,,,;,,,;:,.-=:..;:-=~:'-'-""= Delivery of the truck is anticipated by September 1, 2010; therefore, $280,000 in funds to pay for the pu zero emission Class 8 hybrid truck will be requested to be budgeted in proposed Fiscal Year 2010/11 through the Technology Advancement P ram, Cost Center 330, Account 59965, Of this amount, approximately $180,000 will be Harbor Department via grant funding,

6 DATE: MARCH 24, 2010 PAGE 6 OF 6 ZERO EMISSION CLASS 8 HYBRID ELECTRIC TRUCK CITY ATTORNEY: The Office of the City Attorney has reviewed and approved the Purchase Order Contract as to form and legality. TRANSMITT AL: 1. Purchase Order Contract No (Bid F-676) with Vision Motor Corporation. FIS Approval ( (initials) ' ~ PROVED: ~~.h.tz, Ph.D. ~ Executive Director GK: JH: cc: FC