Backup_JSC_2D Fleet Electrification Update — original pdf

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Executive Overview – Fleet BEV Rick Harland | Assistant Director Fleet Mobility Services | 11/22/2021 Fleet Mobility Services Overview • Fleet Mobility Services manages a comprehensive full life cycle management program for approximately 7,000 vehicles and equipment assets owned by the City of Austin. These services include budget, acquisition, make ready, maintenance and disposal as well as maintaining 45 fuel sites • The Department is currently organized into three functional areas: Service Center Operations Division, Emerging Technologies Division, and the Business Operations Division 11/19/2 021 2 Fleet Mobility Services: Fleet Mobility Strategy Mobility Strategy Advance Automotive Technology on Multiple Fronts: Alternative fuel vehicles, Electric vehicles, Telematics, Car Sharing Artificial Intelligence (AI) and Autonomous Mobility Services, Shop technology Environmental Stewardship: Focus on City’s sustainability goals and objectives Safety and Risk Mitigation Programs: Advanced Driver Assistant Systems (ADAS) technology, telematics, driver feedback, accident reduction Cost containment: All areas I N T R O D U C T I O N W H E R E W E A R E N O W Ahead of plan on savings in spite of a challenging 2020 Shaping the future Doing well by doing good Our 2021 BEV strategy was based on alignment with Austin 2021 fleet growth up 1% to 6787 fleet assets and achieving a City Council directive, fleet’s mobility strategy, disruptive milestone of 255 BEVs purchased with 125 City charging change in the automobile industry and the cultural challenge ports built. Although behind in our initial purchase quantity of introducing battery electric vehicles to a significant portion forecast due to COVID-19 resulting in the shut down of OEM of our light duty fleet, with the build out of a supporting factories, we are well on our way to the initial goal of 330 charging infrastructure. The goal is to take advantage of electric vehicles, which should be achieved in 2022. Cost significant savings opportunities in fuel and maintenance savings to date are ahead of plan showing a 50% greater costs as well as drive reductions in greenhouse gas impact. savings opportunity to the forecast of $3.5M over 10 years. Electrified vehicles are becoming viable and competitive; however, the speed of their adoption will vary strongly at the local level. The speed of adoption will be determined by the interaction of consumer, total cost of ownership and regulatory push, which will vary greatly at the regional and local level 4 Fleet Mobility Services – Fleet Electrification E L E C T R I F I C A T I O N P R O J E C T An annual report 330 165 Plug In Electric Vehicles Charging Ports 2:1 Ratio $3.5M 12K 10 Yr. Savings Opportunity 10 Yr. Tons Carbon Savings E L E C T R I F I C A T I O N R E S O L U T I O N 2016 Austin City Council passed a resolution 20160505-025 to assess opportunities to electrify the COA fleet in response to a 2015 Smart Cities Challenge • Recommendations: o Replacement of 330 gas powered vehicles with a BEV or PHEV by calendar 2020 o Expand charging station infrastructure as needed o Fund charging infrastructure through interdepartmental fuel surcharge 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview Emerging Technologies – Fleet Electrification C I T Y O F A U S T I N P U R C H A S E S Behind on Purchases and Charging Port Installations 255 BEV Vehicles Purchases 5.36% Percent of On Road Fleet BEV/PHEV Purchases 6.79% 330 5.36% 255 4.23% 199 2.74% 126 1.56% 70 $602K FY21 Budget Investment 1.1% 125 Charging Ports Installed 1100+ Public Charging Ports Available 200 150 100 50 0 2018 2019 2020 2021 2022 Total LTD BEV/PHEV Purchases - Units Percent BEV/PHEV - Total Onroad Fleet Charging Stations and Ports 165 114 74 100 33 33 33 33 38 43 2017 2018 2019 2020 2021 LTD Charging Stations Installed LTD Charging Ports Installed 11/19/2021 Fleet Mobility Services – All Hands Overview C I T Y O F A U S T I N S A V I N G S Favorable on Savings to Goal in Year 3 Approx. Accumulated Savings to Date 52% Fuel 48% Maintenance Fleet Mobility Services - COA Road Map Looking forward Stricter emission regulations, lower battery costs, more widely available charging infrastructure, and increasing consumer acceptance will create new and strong momentum for electrified vehicles (hybrid, plug-in, battery electric, and fuel cell) in the coming years. C O A R O A D M A P An annual report COA Fleet Purchases - BEV Volume 686 613 670 614 640 565 650 570 685 595 10.6% 8.4% 11.7% 12.3% 13.1% 73 56 75 80 630 532 15.6% 690 575 16.7% 645 520 19.4% 720 570 20.8% 700 540 22.9% 90 98 115 125 150 160 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 COA Fleet BEV Purchase Volume COA Fleet ICE Purchase Volume COA Fleet Total Purchase Volume EV Share - COA Fleet 2 3 4 Invest in the Future 8.4% COA Purchases 3.0% New EV Sales Transform Growth 247% 10 Yr. Growth 1148 by 2028 Integrated Solutions 13 Models 6 Manufactures Culture Change to Win 86% Participation Rate 25 Department with EV 800 600 400 200 0 1 3 years into our 2021strategy, we are ahead of the financial plan, despite responding to significant changes in times of transformation and disruption. The majority of electric vehicle fleet is comprised of light-duty cars and SUVs. Significant opportunity to increase our EV fleet in the near term resulting from light duty trucks being available in the 2022 model year. 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview Fleet Mobility Services – Automotive Industry Outlook Shaping the future By 2028, the share of electrified vehicles could range from 10 percent to 30 percent of new-vehicle sales. Adoption rates will be highest in developed dense cities with strict emission regulations and consumer incentives (tax breaks, special parking and driving privileges, discounted electricity pricing.) R O A D M A P An annual report 18.0M 16.0M 14.0M 12.0M 10.0M 8.0M 6.0M 4.0M 2.0M 0.0M Retail Vehicle Sales - BEV Volume 17.0M 17.0M 17.0M 16.8M 16.8M 16.6M 16.7M 17.0M 17.0M 17.0M 16.2M 16.2M 16.1M 16.0M 16.0M 15.8M 15.5M 15.2M 14.7M 17.7% 14.0M 10.9% 13.8% 8.8% 7.1% 4.9% 5.7% 4.1% 2.3% 3.0% 0.4M 0.5M 0.7M 0.8M 1.0M 1.2M 1.5M 1.9M 2.4M 3.0M 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 EV Sales Volume - Retail ICE Sales Volume - Retail Total Vehicle Sales - Retail EV Share - Retail Despite a shift toward shared mobility, vehicle sales volume will continue to grow, but likely at a lower rate of about 2 percent per year. EVs are set to dominate shared mobility space such as car sharing, taxis, and ride hailing due to the favorable economics of fuel and maintenance cost driving greater adoption, innovation with larger batteries and cost reductions resulting from scales of economy. 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview Fleet Mobility Services E N V I R O N M E N T A L I M P A C T An annual report LTD Total Carbon Reduction Metric Tons 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 4,694 4,277 416 2021 3,113 2,826 287 2020 335 310 25 2017 939 861 78 2018 1,892 1,717 175 2019 LTD Total Carbon Reduction Metric Tons LTD BEV/PHEV CO2 Emissions Metric Tons LTD Gas power Emissions Metric Tons 2,826 METRIC TONS CARBON SAVINGS 2 0 2 1 F o r e c a s t 4 , 2 7 7 M e t r i c T o n s C O 2 S a v i n g s o n 3 3 0 E V s B E N E F I T S O F G O I N G G R E E N The transportation sector accounts for over a quarter of total U.S. greenhouse gas (GHG) emissions. Because of this, many organizations now recognize the important role that they play in minimizing the harmful effects of climate change. The City of Austin is focused on exploring low carbon fuel opportunities 73% Alternative fuel consumed 87.8% vehicles capable of using Alt. fuels 5.3% vehicles are BEVs Total Annual Carbon Reduction 8,769 Metric Tons 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview 9 City of Austin: Strengths and Challenges Top Strengths Top Challenges • Secured funding driven from savings • Cultural change, range anxiety • City owned power company • Battery charge time • EV Everywhere program 1 account • Very little level III charging stations • Top down, center led initiative • Not enough charging infrastructure • Clear mandate • Cost per charging port • Existing presence of charging infrastructure company • Very little existing building code requirements. Need to future proof B a t t e r y E l e c t r i c V e h i c l e P r o g r a m • Telematics • Establish build out contracts • Grant opportunities • Strategic purchasing partnerships i.e. Sourcewell, Climate Mayors • BEVs that fit the service duty i.e. pickup trucks, medium and heavy duty trucks • Fleet or department sprawl 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview 10 City of Austin: Lessons Learned • Start with charging station infrastructure planning Lessons Learned • Create a master plan for fleet, employee and customer parking for each facility • Greater key stakeholder involvement early with a solid project management team • Build charging infrastructure first. Start at least 1 year in advance • Design for power resiliency • Get telematics to see state of charge, capture odometer, and develop a BEV implementation strategy B a t t e r y E l e c t r i c V e h i c l e P r o g r a m • Consolidate the domicile location of the fleet • Conduct a full fleet assessment and cost analysis • Secure funding and seek grant opportunities where possible • Seek legislative and government support at all levels • Minimize charging companies and accounts (make it easy) • Get a clear mandate from leadership • Establish strategic partnerships, Sourcewell, Climate Mayors, Electrification Coalition 11/19/2021 Fleet Mobility Services – Fleet Electrification Executive Overview 11 Thank you 13