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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