1. Innovative Clean Transit Regulation
CalACT 2018 Autumn Conference, Napa Valley
November 15, 2018

2. Overview Need for NOx and greenhouse gas (GHG) reductions
Transit agencies are key partners and lead the way
Proposed Innovative Clean Transit (ICT) regulation
Available funding
Next steps

3. Major NOx Reductions Needed
South Coast Mobile Source NOx Emissions (tons per day)
Action beyond current programs needed by 2031
Mobile source emissions reduced more than 50%
Truck and bus emissions reduced by nearly 70%
Heavy duty and federal sources remain largest contributors

4. California Sustainability Targets
Achieve 1990 GHG levels by 2020
40% below 1990 levels by 2030
80% less from transportation by 2050
Cleaner electricity targets (SB 100)
60% renewable electricity by 2030
Zero carbon electricity by 2045
Full carbon neutrality by 20451
Executive Order B-55-18

5. Transit Agencies are Partners
Long-term partners in introducing new technologies
Cleaner engines, alternative fuels, exhaust retrofits
Leading adoption of zero-emission (ZE) technologies and low-NOx engines
Addressing barriers, expanding education and outreach
Developing sustainable transportation
Reduce light-duty vehicle miles travelled
Increase connectivity
Enhance mobility

6. Transit Agencies Lead the Way
More than 50 transit agencies making zero emission bus (ZEB) purchases
Fuel cell and battery electric buses
153 in operation
433 placed orders
729 awarded or planned

7. Setting Early Goals for Complete Transition to Zero-Emissions
Agency
Total Buses
ZEB Target
AC Transit
632
2040a
Anaheim Resort Transportation 82
2019/2020
Antelope Valley Transit 77
2019
Foothill Transit
373
2030
GTrans 65
2035
Humboldt Transit Authorityb 30
LA Metro
2452
LADOT
357
Porterville Transit 20
2025
SamTrans
369
2033
San Joaquin RTD
111
Santa Clara VTA
485
Santa Cruz Metro 98
Santa Monica BBB
200
SFMTA
620c
Union City Transit 26
2028/29a
16 transit agencies committed to making full transition to ZEBs
Nearly 50 percent of all buses in California
a Target not a directive from Board
b Joint application with Arcata & Mad River Transit System
c 327 trolley buses not included in total

8. Broad Support for ZEB Deployment
Wide range of zero emission buses and multiple manufacturers
CPUC approved truck and bus infrastructure investments
PG&E: $236 million
SCE: $343 million and new rate schedule
SDG&E: $151 million proposed (pending decision)
Department of General Services streamlining ZEB purchases
Substantial incentives encourage early actions
Continued technology advancement and cost reductions are needed for full transition

9. Principles of Staff Proposal
Achieve zero-emission transit system by 2040
Partner with transit agencies on long-term strategies and implementation
Encourage early action
Ensure sufficient funding opportunities for successful transition
Enhance transit services and encourage innovative mobility options
Provide environmental benefits, especially in disadvantaged communities (DAC)
Ensure requirements are technologically and financially feasible
Monitor progress and report back to Board periodically

10. Proposed ICT Regulation Summary
ZEB rollout plan
ZEB purchase requirement
Discharge early ZEB purchases
Flexibility and exemptions
ZE mobility option
Low NOx engines and renewable fuels
Annual reporting and record keeping requirements

11. Requirements Differ by Fleet Size
Changed from Original Proposal
Requirements Differ by Fleet Size
Large transit agency*
Has more than 65 peak buses and operate in the South Coast or the San Joaquin Valley, or
Serves populations > 200,000 and has more than 100 peak buses
Small transit agency includes all others
* Includes all buses with a GVWR >14,000 lbs, but excludes demand response buses.

12. Individual ZEB Rollout Plan
Informs funding plans, utilities, and engages general public
Approved by the transit’s board of directors and submitted by
June 30, 2020 for large transit agencies
June 30, 2023 for small transit agencies
Rollout plan components
Goal of full transition to ZEBs by 2040
Show how ZEBs will serve DACs
Schedule for bus purchase, conversion and infrastructure build out
Identify potential funding sources

13. ZEB Percentage of New Bus Purchases
Changed from Original Proposal
ZEB Purchase Schedule
Full useful life for buses
2023 requirement discharged if 850 ZEBs purchased by 12/31/2020
2024 requirement discharged again if 1,250 ZEBs purchased by 12/31/2021
All early ZEB purchases count towards future compliance
Comprehensive review prior to first purchase requirement
Year
ZEB Percentage of New Bus Purchases
Large Transit Agency
Small Transit Agency
2023
25% -
2024
2025
2026
50%
2027
2028
2029 & after
100%

14. Later Phase-In for Excluded Buses
Cutaway, motor coach, double decker, and articulated buses
Excluded from ZEB purchases until January 1, 2026, and
Applicable bus type passes Altoona testing
Voluntary ZEB purchases still count towards compliance

15. Comprehensive Review of ZEB Technologies
Costs
Vehicle & infrastructure capital costs, O&M costs
Battery Performance
Battery degradation
Reliability
Availability, road call, fuel efficiency, etc.
Range
Real world operating range
Continue coordination for successful implementation
Evaluate transit agencies experience and identify issues
Technology status for cutaway and other bus types
Help formulate appropriate policies and funding strategies
Board update one year prior to first purchase requirements

16. Exemptions to Safeguard Uncertainties
Changed from Original Proposal
Changed from Original Proposal
Exemptions to Safeguard Uncertainties
Needed ZEB type is not available
Exemptions based on available depot charging BEBs
Daily mileage needs cannot be met
Gradeability needs cannot be met
Incremental capital costs cannot be offset with funding and financing
Cannot afford incremental managed net electricity cost
Delay of infrastructure construction
Agency declared financial hardship
*With available depot charging BEB of the same bus type.

17. Credit to Recognize Early Actions
Changed from Original Proposal
Changed from Original Proposal
Credit to Recognize Early Actions
Technology
In Service
Bonus ZEB Credit
FCEB
>January 1, to January 1, 2023 +1
January 1, 2018 +2
BEB
Trolley
January 1, 2018 to December 31, 2019
+1/10
Bonus for pioneers with ZEBs already in service
Took more risks with early technologies and higher costs
Worked to address barriers
Credits count towards future obligations and extends funding eligibility

18. Transit Agencies May Comply Jointly
Meet individual ZEB targets collectively
In same Metropolitan Planning Organization, Regional Transportation Planning Organization, Air District, Air Basin, or
All members share infrastructure
Complements SB 375, provides more flexibility, better land use, and reduces costs

19. Zero-Emission Mobility
ZE car sharing, vanpool, micro transit, bicycle, or scooters
May be used in lieu of ZEB purchases
320K Passenger Miles
Large Transit Agency =
Miles from bike sharing programs receive a 3X multiplier incentive
Small Transit Agency
180K Passenger Miles =

20. Low NOx Engines & Renewable Fuels
NOx Exempt Areas
(shaded green)
Low-NOx engines purchases begin January 1, 2020
All transit agencies
Excludes buses dispatched from NOx exempt areas
If engine commercially available for 2 years
Does not require switching fuel types
Renewable fuels when fuel contracts are renewed
Excludes small transit agencies

21. Significant Incentives Available
HVIP
Low NOX engines, ZEVs, advanced technology, & infrastructure
FY 18-19
$125 M VW
Zero-emission transit, school, & shuttle bus replacements
$130 M
Carl Moyer
Cleaner engines & ZEVs up to $80,000/bus plus fueling infrastructure
FY 18-19
$79 M
AB 617
Engine replacement & infrastructure in DAC
FY 18-19
$245 M
LCTOP
Expanded bus or rail services, & multimodal facilities
FY 17-18
$146 M*
TIRCP
Rail, bus, ferry transit improvements
FY 17-18
$291 M*
Utility Programs
Charging infrastructure service upgrades and electricity rates (SB350)
>$575 M
LCFS
Credits for using low carbon transportation fuels
~$10,000/bus/yr
* Calculated from cap-and-trade auction proceeds listed at arb.ca.gov/cc/capandtrade/auction/aug-2018/ca_proceeds_report.pdf

22. Statewide NOX and PM2.5 Emissions Benefits
Reduce NOX and PM2.5 tailpipe emissions 7,000 tons and 39 tons respectively from 2020 to 2050

23. GHG Emissions Benefits
Reduce GHG emissions by 19 MMT CO2e from 2020 to 2050

24. Benefits of Proposed ICT Regulation
Health benefits, especially in DACs
Climate benefits
Job creation
Reduces energy use
Less dependence on petroleum fuel
Leads zero-emission technology in other heavy-duty sectors
Other societal benefits

25. Next Steps 15 day changes available for comment
Comment period ends November 26, 2018
Second hearing
Anticipated December 2018 or January 2019 for vote

26. Contact Information
Tony Brasil, Branch Chief
Transportation and Clean Technology
(916)
Innovative Clean Transit
Yachun Chow, Manager , (916)
Shirin Barfjani, Lead Staff , (916)