HomeMy Public PortalAboutADM-149_Electric Vehicle and Equipment Procurement_Effective 12-29-2023
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 1 of 8
Approved by:
Section 1.0: Purpose
This policy provides guidance on the purchase of vehicles and equipment relative to
the City’s preference for conversion of all vehicles to electric or other non-polluting
vehicles and equipment over time, as well as the development of electric charging
infrastructure that will be necessary for those vehicles. The objective is to reduce
the City’s greenhouse gas emissions and other pollutants in accordance with the
City Council Resolution in Support of the International Paris Climate Accord and the
New Hampshire Climate Action Plan.
Section 2.0: Scope
This policy applies to the purchase of all vehicles and equipment by all
departments.
Section 3.0: Definitions and Acronyms
Battery Electric Vehicle (BEV) – A type of electric vehicle (EV) that exclusively
uses chemical energy stored in rechargeable battery packs, with no secondary
source of propulsion.
Capital Improvement Project (CIP) – A six year plan adopted annually as it
applies in this case to vehicles and equipment valued at $100,000 or more. This
also applies to the new construction new or renovation of old buildings and related
infrastructure.
Demand Charges – Electricity demand charges represent the high costs that
electric companies pay for generating and transmission equipment that sits idle
most of the time. Demand charges are based on the maximum amount of energy
consumed in a specified period of time known as a demand interval. Demand
intervals are usually 15 or 30 minutes. Demand charges are based on the
maximum amount of power drawn on an electric account over a single demand
period in a given month. Demand charges are generally only levied on accounts
that fall into the higher commercial and industrial usage categories (>20 kW in
Liberty territory).
Direct Current Fast Charger (DCFC) – aka ‘Level 3 charger,’ is an EV charging
system that provides DC power directly to an EV’s battery, thereby greatly
increasing the potential charging speed.
Electric Vehicle or Equipment (EV) – A vehicle or piece of equipment that can be
powered by an electric motor that draws electricity from a battery and is capable of
being charged from an external source.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 2 of 8
Approved by:
Electric Vehicle Service Equipment (EVSE) – The equipment associated with
transferring electric energy to a battery or other energy storage device in an
electric vehicle.
Hybrid Electric Vehicle (HEV) – A vehicle powered by an internal combustion
engine in combination with one or more electric motors that use energy stored in
batteries.
Internal Combustion Engine Vehicle (ICE) – A vehicle or piece of equipment
that is powered by an engine that generates motive power by the burning of
gasoline, oil, or other fuel with air inside the engine, the hot gases produced being
used to drive a piston or do other work as they expand.
Life Cycle Analysis (LCA) – The systematic analysis of the potential economic
and/or environmental impacts of products or services during their entire life cycle.
Time-of-Use Electric Rates (TOU) - Time-of-use rates fall within a broader
category of innovative utility rate structures that adjust the rate a customer pays
for electricity over the course of the day. These types of rate structures are
commonly referred to as time-varying rates.
Total Cost of Ownership (TCO) – The purchase price of an asset plus the costs of
operation. Assessing the total cost of ownership means taking a bigger picture look
at what the product is and what its value is over time.
Section 4.0: Policy Detail
City Staff will purchase electric vehicles whenever they are able to do so and when
an electric vehicle adequately meets the function and performance of the internal
combustion engine vehicle or piece of equipment it is replacing. Staff shall
document the reasons for any inability to meet this policy. This policy outlines the
guidelines and procedures for the procurement and management of electric vehicles
and equipment by the City, with a focus on financial feasibility and performance.
This Fleet Electrification Plan will be used to further other City environmental goals
wherever possible. Examples include:
• Renewable energy (solar, landfill gas-to-energy) to power the City EVSE.
• Energy storage incorporated into EVSE to reduce electric demand charges
and reduce the need for polluting electricity plants.
• Time-Of-Use rates for EV charging to reduce costs and pollution.
• Vehicle-to-grid energy transfer when feasible and effective to generate
revenue and reduce pollution.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 3 of 8
Approved by:
If a Battery Electric Vehicle or equipment is not available that meets the City’s
needs, consideration will be given to hybrid vehicles or other types of vehicles or
equipment that reduce priority pollutants.
Objectives
The objectives of this policy are as follows:
• Reduce the City's greenhouse gas emissions and dependence on fossil fuels
by promoting the use of electric vehicles and equipment.
• Prioritize the procurement of electric vehicles and equipment when they are
financially feasible and meet or exceed the function and performance
requirements of the internal combustion engine vehicles they are replacing,
or when Staff otherwise determine that the EV’s function is adequate to meet
the City’s needs.
• Support the development of EV charging infrastructure within the City.
Procurement Principles
Financial Feasibility: The financial analysis shall consider factors such as inflation
rates, federal and state tax incentives, and maintenance and repair costs after the
warranty has expired ($/mile) to determine the TCO of each EV option.
Performance: EVs shall be selected based on their ability to meet the needs of the
City and Staff’s ability to adapt to them. A comparison to equivalent ICE vehicle or
equipment performance shall be performed for all potential EV purchases.
Environmental Impact: The environmental impact of EVs, including their potential
for reducing CO2 emissions compared to ICE vehicles or equipment, shall be
estimated and considered in the procurement decision. Emissions shall be
calculated, and emission reductions publicized.
Ownership Structure: Various ownership structures, including Purchase (cash),
Purchase (Loan), Lease, and Tax-Exempt Lease Purchase, may be evaluated based
on their financial implications.
Staff working to transition the City’s fleet should build strong relationships with
utility representatives, peer local governments, regional associations, state-level
agencies, elected state and federal officials, and other stakeholders to accelerate
the transition to EVs.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 4 of 8
Approved by:
Staff may make use of the State’s collective vehicle procurement offers as well as
those of the Climate Mayors’ Purchasing Collaborative (see Resources) whenever
possible for EV purchases.
Section 5.0: Procedures
Procurement Process
Analysis: The procurement team, comprised of the Energy and Facility Manager,
Fleet Superintendent, Department Head or Designee, and others with technical
knowledge of the asset as needed, shall conduct a comprehensive analysis using an
EV Procurement Analysis Tool. This tool shall evaluate the financial feasibility,
performance, environmental impact, and ownership structure of potential EV
options. See Section 6.0: References, Dashboard for Rapid Vehicle Electrification:
(DRVE Tool) to access EV Procurement Analysis Tool.
Financial Assessment: The purchase of electric vehicles or equipment shall be
considered when they are financially feasible, factoring in such elements as:
• Expected years of use/ownership.
• Annual vehicle mileage, idling time, and fuel use.
• Inflation rate (including fuel and electricity) (%/year).
• Value of federal or state tax and other incentives ($/vehicle).
• Maintenance and repair cost after the warranty ($/mile), EV vs. ICE.
• Life Cycle Assessment and Total Cost of Ownership as opposed to up-front
capital cost alone.
• Electricity Costs, including Demand Charges.
• Ancillary benefits, such as Time Of Use charging rates, Vehicle-to-Grid
remuneration, and the increased functionality of EVs.
Federal, state, and other incentives and rebates will be sought to cover the cost of
fleet electrification wherever feasible.
Performance Evaluation: EV models shall be evaluated for their performance,
including interviews with current users in similar climates/conditions. A
performance comparison to equivalent ICE vehicles shall be made.
Environmental Impact Assessment: The environmental impact of EVs, including
their potential to reduce CO2 emissions and the emissions of the electricity used to
charge the EVs, shall be determined.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 5 of 8
Approved by:
Ownership Structure Analysis: The procurement team shall evaluate different
ownership structures to determine the best approach for the City.
Recommendations and Approvals: The procurement team shall provide a
recommendation based on the analysis of potential EV options, considering financial
feasibility, performance, environmental impact, and ownership structure. The
recommendation approved by, along with approval from the Department Head for
submission, shall be reviewed per Administrative Policy #08-02-A Purchase
Agreements Policy, Administrative Policy 2018-01-25 Purchasing and Payment
Processing of Vendor Invoices, and Administrative Policy 98-01-A Budget
Submission Dates.
Implementation: Once approved, the procurement of electric vehicles shall be
carried out in accordance with the selected ownership structure. The City shall
continually monitor the performance and costs associated with the EVs to ensure
they meet the expected benefits and cost savings.
Charging Infrastructure
The City will develop and maintain an EV charging infrastructure plan to support its
electric vehicle fleet. This plan will anticipate future needs for City EV charging,
especially if an EV is planned for purchase. Costs for this EVSE will be incorporated
into operating budgets and/or the CIP process, with financial incentives obtained
wherever practical. The plan will also consider the placement of charging stations
at City facilities and in public areas to encourage EV adoption by employees and
residents.
Staff will undertake long-term planning for EV charging equipment whenever a
facility is undergoing substantial renovation, especially if the renovation involves a
parking area. This includes at the very least the installation of electrical conduit to
locations where future EV charging stations could be located. EVSE development
can have a long lead time, up to two to three years for DC fast chargers, and staff
should plan accordingly.
Facility renovations shall incorporate infrastructure for future EVSE wherever
possible, even if no EV purchases are planned for the immediate future. This will
substantially reduce future costs and work. EVSE installed by the City should meet
not only current needs but anticipated future needs as well.
EVSE should be sited to avoid accidents and hazards, maximize convenience, allow
for future expansion in number of stations and charging speed, and minimize the
cost of installation. It should be undertaken with pre-knowledge of electrical
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 6 of 8
Approved by:
capacity at the site, an awareness of how it will affect traffic patterns, and any
other major site constraints. Liberty Utilities should be consulted early in the
development of EVSE as they often require a long lead time to do their
interconnection feasibility assessment and cost estimate.
City Staff will anticipate the need for back-up EV charging when planning EV
purchases and EVSE development. Addressing how will the vehicles will be charged
if the electric grid goes down.
Charging stations shall be installed in accordance with applicable regulations and
standards.
Benefit-Cost Analysis
The City will conduct a comprehensive benefit-cost analysis to compare the total
cost of ownership for electric vehicles/equipment and traditional
vehicles/equipment, considering purchase price, operating costs, fuel costs,
maintenance, and available incentives or grants.
EV Fleet Management
The City will establish a system for monitoring and managing the electricity-specific
aspects of its electric vehicle fleet, including vehicle maintenance, charging
schedules, usage, and cost tracking.
Training and Awareness
All City employees responsible for operating electric vehicles will receive training on
EV operation. All City employees responsible for maintaining electric vehicles will
receive adequate training on EV maintenance.
The City will raise awareness about the benefits of electric vehicles among
employees and residents through outreach and educational programs.
Reporting
The City will provide regular reports on the progress of its electric vehicle adoption
program, including cost savings, emissions reductions, reductions in staff
maintenance time, and other relevant data.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 7 of 8
Approved by:
This policy will be periodically reviewed and updated to reflect advancements in EV
technology and changes in the City's goals and needs.
Compliance
All City departments and employees are expected to comply with this policy to the
best of their ability.
This policy requires staff to document the reasons for any vehicle purchase that
does not meet the criteria outlined in the policy. This is in order to ensure
transparency and accountability in the procurement process.
Section 6.0: References
• National Electric Vehicle Infrastructure (NEVI) Program
• Local Government Playbook – Electrification Coalition
• Dashboard for Rapid Vehicle Electrification: (DRVE Tool)
• Climate Mayors’ EV Purchasing Collaborative
• Transportation Electrification Roadmaps – Electrification Coalition
• Charging and Fueling Infrastructure grant program
• U.S. Department of Transportation - federal funding programs
• Federal Joint Office of Energy and Transportation: https://driveelectric.gov/
• FACT SHEET | The White House | New Standards and Major Progress for a
Made-in-America National Network of Electric Vehicle Chargers
• Connecticut Department of Transportation EV Plan, published 9/12/2022.
• Net Zero Montpelier, Vermont
• Electrification Coalition: State Plug-In Adoption Resource Kit (SPARK)
• Rocky Mountain Institute Federal Funding Opportunities for Local
Decarbonization (FFOLD) tool helps local governments identify the most
relevant funding sources for their fleet electrification process (and other
decarbonization efforts) and provides key guidance on eligibility and effective
grant application components.
City of Lebanon
New Hampshire
ADMINISTRATIVE POLICIES & PROCEDURES
Electric Vehicle and Equipment Procurement
Policy
Policy Number Effective Date Last Revision Page No.
ADM-149 12/29/2023 Page 8 of 8
Approved by:
• Electric Vehicle Infrastructure Projection Tool (EVI-Pro). This tool provides a
simple way to estimate how much electric vehicle charging you might need
and how it affects your charging load profile.
• How Cities and Counties can Electrify Their Fleets, Rocky Mountain Institute,
January 2023.
Two specific fleet electrification incentives:
• Qualified Commercial Clean Vehicles Tax Credit (Section 45W): As of 2023
this new ‘tax credit’ is available to municipalities and provides up to $7,500
for vehicles with a gross weight up to 14,000 pounds, and up to $40,000 for
heavier vehicles. Final assembly of eligible vehicles must take place in North
America, unlike the modified personal vehicle tax credit (Section 30D), and
the commercial version does not impose battery and critical mineral
manufacturing and sourcing requirements. This will make it considerably
easier for automakers to manufacture vehicles that are eligible. The 45W tax
credit value is calculated as the lesser of (a) 30% of the vehicle’s cost basis
or (b) the incremental cost difference of the EV compared with a
conventional alternative.
• Alternative Fuel Vehicle Refueling Property Tax Credit (Section 30C): This tax
credit provides an incentive for developing EV chargers. It modifies and
extends a previous tax credit that expired at the end of 2021. Specifically, for
EV chargers deployed in either low-income communities or outside of urban
areas, a credit of 6% of project costs is available, with the potential to
increase this credit to 30% for projects using prevailing wages and meeting
certain apprenticeship requirements. The maximum credit value is $100,000
per charger.
Section 7.0: Policy & Procedure Revision History
Section Revisions Date
Original Adoption 12/29/2023
Amendment
Amendment
Amendment