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Electric School Buses: A VW Settlement Opportunity March 14, 2017 Protecting the Midwest’s Environment and Natural Heritage
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Electric School Buses:
A VW Settlement Opportunity March 14, 2017
Protecting the Midwest’s Environment and Natural Heritage
Welcome & Introductions
2
Howard Learner, Environmental Law & Policy Center (ELPC) President & Executive Director
Jamie Ponce, Environmental Law & Policy Center (ELPC) Director of Innovation
Susan Mudd, Environmental Law & Policy Center (ELPC) Senior Policy Advocate
Tamara Dzubay, Environmental Law & Policy Center (ELPC) Clean Energy & Sustainable Business Specialist
Bethany Whitaker, Vermont Energy Investment Corporation (VEIC) Senior Consultant
Kevin Matthews, National Strategies (NSI) Managing Director, Sustainability Sector
Sandra Broekema, Great River Energy (GRE) Director, Corporate and Business Development
www.elpc.org
Webinar Goals & Outcomes
3
Today’s Agenda
A. Problem: Diesel School Buses Contribute to Childhood Asthma
B. Solution: Electric School Bus (ESB) Opportunity through VW Settlement
C. VEIC: Massachusetts Pilot Overview
D. NSI: California Pilot Overview
E. GRE: Midwest Opportunities
F. Q&A
G. Next Steps Webinar Goals: • Inform attendees of VW settlement opportunity to modernize school bus fleets • Empower interested stakeholders to advocate at the state-level • Gauge the need and interest in follow-up conversations and activities
www.elpc.org
The Problem: Kids & Diesel Pollution Don’t Mix
4 Photo: National Science Foundation – www.nsf.gov DNA Learning Center – www.blogs.dnalc.org
www.elpc.org
Diesel School Buses Contribute to Childhood Asthma
5
There are over 675,000 school buses in operation in the United States, and the average school bus makes 85 stops per day…that’s a lot of idling!
Asthma attacks are triggered by
pollutants like NOx emissions from
diesel school buses resulting in
unnecessary hospitalizations and
deaths
School buses idle while dropping off
and picking up students, furthering
children's daily exposure to these
pollutants
Asthma is the most common chronic condition among
children affecting 1 in 10 in the United States
Diesel school bus tailpipe emissions (including NOx and
PM 2.5) are asthma exacerbating pollutants
www.elpc.org
Solution: Clean Electric School Buses
6
www.elpc.org
VW Settlement Offers State-Directed Funding to Reduce Diesel Pollution
Volkswagen (VW) violated the Clean Air Act by selling ~590,000 model year 2009 to 2016 diesel cars with defeat devices designed to cheat on federal emissions tests
This resulted in excess NOx emissions of more than 40,400 tons
US EPA and others sued VW resulting in a mitigation trust settlement through which each state will receive millions of dollars for projects that reduce NOx emissions
VW Mitigation Fund Allocations for Midwest States
www.elpc.org
$438M+
TOTAL FOR
MIDWEST
STATES
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Eligible VW Mitigation Options & Considerations
1. School, Shuttle, or Transit Buses
2. Light-duty EV Infrastructure
3. Local Freight Trucks (Large)
4. Local Freight Trucks (Medium)
5. Freight Switchers
6. Airport Ground Support Equipment
New Diesel (2016 or newer)
B) Eligible Technologies:
A) Eligible Vehicles & Equipment:
7. Forklifts 8. Ferries / Tugs 9. Ocean Going
Vessels
10. DERA Match (Diesel Emissions
Reduction Act)
C) Suggested Criteria to Prioritize Mitigation Investments:
Market Impact Cost-Effectiveness
(across the full life of the vehicle)
NOx Reduction Human Risk /
Exposure (including EJ Impact)
www.elpc.org
Alternative Fuels (ex: CNG, propane, hybrid)
All-Electric
8
Why Go Electric?
Switching to an electric bus eliminates over 20,000 pounds of NOx and over 350 pounds of diesel particulate matter over a 12-14 year lifecycle
Electric
School Bus
Diesel
School Bus
AIR
QU
AL
ITY
BE
NE
FIT
S
MORE MARKET IMPACT TRANSFORMATIONAL MARKET IMPACT
Eligible school buses include 2009 model year or older class 4-8 school buses (type A-D)
www.elpc.org
9
VEIC: Massachusetts Pilot Overview
10
To act with urgency to enhance the economic, environmental and societal benefits of clean and efficient energy for all people.
Bethany Whitaker [email protected]
www.veic.org
VEIC: Massachusetts Electric School Bus Pilot Objectives
11
Advance electric vehicle technology education and awareness
Use electric school bus (battery) as energy storage resource
Demonstrate revenue potential of Vehicle to Grid (V2G) or Vehicle to Building (V2B)
Deploy electric school buses
Purchase and deploy four school buses
Gain experience with cold weather operations
VEIC: Location and Pilot Site Selection
12
Primary criteria:
Student population
Transportation services provided (fleet and fleet size)
Own or contract for service
Energy costs and consumption patterns
Availability of on-site renewables
Local transmission utility
Reasons for interest
DOER awarded 4 Massachusetts school districts up to $350,000 each
for a type C electric school bus and charger
VEIC: Procurement - Project Roles
13
P R O J E C T Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Overall Project Manager - Department of Energy Resources
Grants and memorandums of understanding
Technical Assistance - Vermont Energy Investment Corporation
Develop vehicle specifications
Stakeholder coordination
Evaluation
Demonstration Sites - Schools
Issue Request for Proposals
Deploy school bus in service
Collect and report data
VEIC: Massachusetts Electric School Bus Pilot Project Sites
14
Massachusetts Electric School Bus Pilot Sites
Amherst Cambridge Concord
School Type:
• Regional • Small-town/rural
• Urban • Suburban
Bus Service Structure:
• School owns vehicles, contracts for service
• Contractor owns buses and operates service
• Owns/operates school bus service
Local Utility:
• Investor owned • Investor owned • Municipal
Unique Features:
• Pays demand charges
• Renewables on-site • Pays demand
charges
• Renewables on-site • Pays demand
charges
VEIC: Vehicle Procurement
15
Request for Proposals Issued by Schools
Similar forms and requirements
Separate schedules
Customize according to need
Performance standards
Vehicle range
Operating performance
Interior cabin temperatures
Battery warranty
Warranty is based on kWh
Deterioration rates (80% charge remaining after 5 years )
VEIC: Key Early Lessons from Deployments
16
Vehicle Licensing/Registration
Vehicle “electric” markings
Information for first responders
Vehicle challenges
Driver and Mechanic Training
Very important – technology has differences
Reading dashboard
Understanding state of charge
Communication and Openness
Frequent communication implementation
Share information
Willingness to work through challenges
3
1 2
VEIC: Community Engagement
17
Schools are excellent community partners
Easy to attract audiences and attention
Including press coverage
Lots of opportunities to interact with different populations
Engagement through deployment of school bus
Use of electric school bus for students with disabilities
Take students on environmental field trips
Rotate bus through routes
pa
NSI: California Pilot Overview
Partners and buses can still be added to the Blue Bird
Project
Kevin L. Matthews
Managing Director, NSI [email protected]
202-349-7010 www.nationalstrategies.com
18
NSI: Background & Leadership on Electric School Buses
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How did NSI wind up running Electric School Bus projects?
NSI Government Markets
represented Blue Bird on
selling school buses
NSI Government Relations
represented AC Propulsion on
funding allocations
NSI LEARNED THAT SCHOOL BUSES SIT IDLE ON AVERAGE 85% OF THE HOURS IN A YEAR PRESENTING SIGNIFICANT V2G COST SAVINGS/INCOME POTENTIAL
V2G Electric School Buses
NSI: Phase 1- Launching the Market for Electric School Buses
20
How does putting V2G on a school bus change cost factors?
NSI Research Division for Blue Bird showed the economics were very favorable for electric school buses compared to diesel in term of Total Cost of Ownership (TCO)
Lower fuel costs
Lower maintenance costs
V2G revenue ranged from $5,000 to $20,000 per bus per year depending on market
Lower Fuel Costs
Lower Maintenance
Costs
V2G Revenue
TOTAL COST OF OWNERSHIP OF
ELECTRIC SCHOOL BUS IS EQUAL TO
OR LESS THAN DIESEL
NSI: Phase 1- Launching the Market for Electric School Buses
21
NSI created working group; developed a demonstration program
Clinton Global Initiative also commissioned study; NSI asked to take over project management
PLANNING DEVELOPMENT TESTING
Designed a 4 bus Electric School Bus Demonstration Project
Awarded California Energy Commission Grant with matches and in-kind contributions totaling $3.3M
Funds sufficient to convert 6 1996 Blue Bird C Series School Buses (short wheel base) to electric, install charging infrastructure, and run demonstration for 2 years in Torrance, Napa Valley and Edison School Districts in California
Hired Transpower through competitive bid process to conduct retrofit
Currently 4 of the 6 are in use, remaining 2 will be deployed by May
NSI: Phase 1- Key Learnings
22
Retrofitting is time consuming and has advantages/disadvantages
Stakeholder engagement is critical – everyone needs to be involved
School bus owners/operators primarily desire new school buses
V2G is hard in some markets but creates real, positive, cost-effective results
Current Technology allows 60% of school bus routes to be served by electric school buses
PHASE 1 PROGRAM SHOWS A
TOTAL COST OF OWNERSHIP
CROSS POINT AT 10-12 YEARS
WITH THE AVERAGE
USEFUL LIFE OF A SCHOOL BUS
BEING 14 YEARS
EVEN IF ELECTRIC SCHOOL BUSES ARE YEARS AWAY FOR A SPECIFIC SCHOOL DISTRICT, INSTALLING CONDUIT NOW AT BUS YARDS IS VERY LOW COST AND AVOIDS SIGNIFICANT ISSUES DOWN THE ROAD
NSI: Phase 2- Funding Purpose Built Electric School Buses
23
With results from Phase 1, NSI re-engaged Blue Bird in discussions
Project team awarded DOE grant December 2016
3 year project to develop Blue Bird Electric School Bus
Blue Bird Electric School Bus Program
Funding Sources - $9.6M total
NSI: Phase 2- Blue Bird and Purpose Built Electric School Buses
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Purpose Built Blue Bird Electric School Bus
Based on Blue Bird Vision Type C School Bus – best selling school bus in U.S.
Custom design and engineering
Federal/State Safety testing – including full scale crash test program
Durability Study – 50,000 miles on a track
Minimum 80 mile range on a single charge
100 kwh battery capacity (minimum)
200 kwh bi-directional inverter with associated charging system
Various UL and electrical certification/testing
8 bus demonstration of driving capability and V2G interface in California
NSI: What’s Next?
25
Higher Initial Acquisition Cost is a challenge
Pilots can help achieve economies of scale
Local utility role
Battery leasing reduces acquisition cost
Declining battery prices will reduce electric school bus prices
. VW SETTLEMENT IS A GAME CHANGER
School districts can obtain free electric school buses, immediately lower operational costs and potentially generate revenue through V2G and have emergency backup capability
GRE: Electric School Bus Pilot Objectives
DEMONSTRATE
Cold weather
climate
Longer suburban
and rural routes
DOCUMENT CALCULATE
Demonstrate
electric school bus
performance
Document the
regional
economies
Calculate the
emission
reductions
O&M (energy and
maintenance costs)
savings
From routes and on
premise idling
27
GRE: Electric School Bus Pilot Concept
28
GRE: Phase I – Self Funded Pilot - 2017
Phase I Funding Sources - $400K total
Electric school bus costs range from $325-400k compared to $100-125k for conventional diesel school bus
29
3 bus x $400K = $1.2 million total program
Small rural cooperatives and their student transportation providers will need financial assistance to participate
GRE is seeking 50% cost share for 3 bus pilot in Minnesota
$600,000 participant cash
$600,000 from Volkswagen settlement fund (2018)
GRE: Phase II 3 Bus Pilot 50% Grant 2018+
30
Q&A
31
WHAT? WHY? WHERE? WHEN? WHO? HOW?
www.elpc.org
Next Steps & Thank you
32
Complete ELPC survey to determine follow-up activities
Contact your state lead to advocate for electric school bus investment in your state
State Contact Info Deadline
Illinois [email protected]
Indiana [email protected]
Iowa [email protected]
http://www.iowadot.gov/vwsettlement/ April 28
Michigan [email protected]
http://www.deq.state.mi.us/eforms/RFI-VWBMP.html
Minnesota [email protected]
https://www.pca.state.mn.us/air/volkswagen-settlement March 31
North Dakota [email protected] March 31
Ohio
http://epa.ohio.gov/oee/EnvironmentalEducation.aspx#1313
65122-vw-mitigation-grants
South Dakota [email protected]
Wisconsin [email protected]
www.elpc.org
