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Home My WebLink About02/06/2001, C1 - RESOLUTION DECLARING THE CITY OF SAN LUIS OBISPO'S INTENT TO FOLLOW THE CLEAN DIESEL FUEL PATH AS OUTLINED IN CALIFORNIA AIR RESOURCES BOARD (CARB) RESOLUTION 00-2 Council M�,D.,e j acEnda Repoat "C CITY O F SAN LUIS O B I S P O FROM: Mike McCluskey,Director of Public Works Prepared By: Austin O'Dell,Transit Manager SUBJECT: RESOLUTION DECLARING THE CITY OF SAN LUIS OBISPO'S INTENT TO FOLLOW THE CLEAN DIESEL FUEL PATH AS OUTLINED IN CALIFORNIA AIR RESOURCES BOARD (CARS) RESOLUTION 00-2 CAO RECOMMENDATION Approve a resolution declaring SLO Transit's decision to follow the clean diesel path per CARB Resolution 00-2. DISCUSSION Background In September 1998, the California Air Resources Board (CARB) adopted Resolution 98-49 urging transit agencies and school districts to convert their diesel transit fleet to alternative fuel (i.e. CNG) through standard bus replacements. Transit agencies, metropolitan planning organizations, engine manufacturers, and the California Transit Association (CTA) have worked with CARB to develop an emission rule that would give transit operators flexibility towards reducing emissions from their transit fleet. As a result of these discussions, CARB adopted Resolution 00-2, which further defined the necessary emission goals that each provider must accomplish. A copy of the Final Rule (CARB Res. 00-2) has been included in the Council's reading file as background information for this report. What is CARB Resolution 00-2? CARB Resolution 00-2: Public Transit Bus Fleet and Emission Standards for New Urban Buses will be in effect through 2015. Transit operators are required to choose one of the following paths by January 31, 2001: 1. Clean Diesel Path. Allows transit operators to continue purchasing diesel engines, but requires these operators to adhere to accelerated fleet rule and bus purchase requirements. Large operators (>200 buses) will also be required to demonstrate zero emission technology. 2. Alternative Fuel Path. Requires 85% of a transit operator's bus purchases be alternative fuel through the term of the regulation. These transit operators will adhere to a more relaxed schedule for complying with the fleet rule, and will not be required to demonstrate zero emission technology. C1-1 Council Agenda Report—SLO Transit Fuel Path Page 2 A handout is available in the Council's reading that summarizes each fuel path. After careful consideration of each path, it is being recommended that the City of San Luis Obispo Transit opt for the clean diesel path. This recommendation is based on the size of the SLO transit operations and information gathered from other transit agencies experienced with Compressed Natural Gas (CNG). Disadvantages of SLO Transit operating CNG vehicles are: 1. Capital Issues • Each fueling station costs $1.5 million dollars (price does not include the land purchase, land improvement, or facility upgrades). • Vehicle cost is$40,000 higher than a clean diesel vehicle • Extensive leak detection equipment and other environmental monitoring systems are required throughout the operation facility. • CNG manufacturers offer shorter warrantees (typically one year) for an engine that requires more maintenance. 2. Operating Issues 1. Vehicles ranges fluctuate due to the temperature at the time of fueling. 2. Lower vehicle ranges require more frequent fueling than clean diesel. 3. The nearest CNG maintenance facility is in Bakersfield 4. The additional weight of CNG equipment reduces the life of brakes, tires, and suspension. 5. Because CNG does not contain lubricants, CNG decreases the service life of engines. 6. Mechanics require specialized training to maintain CNG engines. 7. Safety concerns are associated with high pressurized (3600 psi) CNG tanks, which include higher risk of explosions and fires. 8. Natural gas is pumped through a single line to the fueling site. Any natural disaster or other disruption of this gas line would effectively halt operation of CNG vehicles. 3. Health Issues • Per the recent study from the Harvard School of Public Health, CNG buses emit higher volumes of ultra-fine particulate matter that is not monitored. Ultra-fine particulate matter is more harmful to human health because it cannot be filtered by the body's natural filtration system. • CNG engines also emit higher levels of formaldehyde, which is a known health risk. • Cummings Engine Company and Detroit Diesel expect to close the emission gap between clean diesel and CNG by the end of 2002. In addition, alternate fuel technology for transit vehicles continues to advance. Many bus manufacturers are designing low emission vehicles using hybrid electric or fuel cell technology. The infrastructure costs and safety issues associated with these technologies are far less than those of CNG. It is important to recognize that clean diesel and the alternate path using CNG are only interim C1-2 Council Agenda Report—SLO Transit Fuel Path Page 3 solutions until the hybrid and fuel cell technology becomes a more viable and cost effective means of propulsion. This should happen in the next five to eight years. Thus, it is recommended to continue the operation and purchase of clean diesel vehicles until the cost and performance of hybrid and/or fuel cell powered buses are comparable to clean diesel. What is The Clean Diesel Path? Clean diesel is a type of diesel that contains low sulfur that meets emission standards set forth by the California Air Resources Board. The diesel path provides a fast track to the reduction in Particulate Matter emissions (PM) and the reduction of NO, These reductions are possible by the installation of a diesel particulate filter retrofit to each bus. Regardless of fuel, whether it may be diesel or CNG, all transit coaches engines must meet the same emission standards by 2007. Transit agencies with . more than 200 buses, are required to purchase and demonstrate the use of three zero emission vehicles. Zero Emission Vehicles are defined as vehicles that emits no pollutants in to the atmosphere (e.g. hydrogen fuel cell, electric). The City is not required to meet this requirement due to the size of it fleet. As previously discussed, vehicle propulsion technology is in a transitional stage. Both hybrid engines and fuel cells are on the horizon of becoming a reliable and cost- effective means of propulsion that rely on current fuels with water as the only by-product. Please refer to Attachment 2. What are other transit providers doing on this issue? Staff has conducted a survey of both large and small transit operators from the Bay Area and Central Coast that have selected their fuel path. The purpose of this survey is to determine whether transit operators are deciding a particular fuel path depending on their size or for cost effectiveness based on current technology. Based on the survey in Table 1, transit operator are selecting the clean diesel path with the exception of several transit operators that already have CNG fueling stations and CNG compatible maintenance facilities. Table 1 Agency Operator Size Path AC Transit Large Clean Diesel County Connection Small Clean Diesel Union City Transit Small Clean Diesel SLORTA Small Clean Diesel Sonoma Transit Small CNG' SunLine Transit Small CNG' Santa Cruz Metropolitan Transit Large Clean Diesel'- Monterey-Salinas Transit Large Clean Diesel Fresno Area Express Large Clean Diesel Tri-Delta Transit Small Clean Diesel Golden Gate Transit Large Clean Diesel 1 Already have CNG fueling station and CNG Compatible Maintenance Facility 2 Will convert to alternative fuel when fleet is rehabilitated C1-3 Council Agenda Report—SLO Transit Fuel Path Page 4 CONCURRENCES The Mass Transportation Committee has not made a recommendation on which fuel path to take because, regarding the appropriate fuel path to take because of the urgency to notify CARB to maintain compliance of the law. However, the chairperson concurs with the CAO Recommendation. ALTERNATIVES Alternative 1. The Council may decide to delay its decision and not select a fuel path. This decision would result in a non-compliance finding from the California Air Resources Board and may result in defaulting to an undesirable fuel path. Alternative 2. The Council may decide to select the CNG alternative fuel path, which would have fiscal, and safety consequences to the operations of SLO Transit service as well as the bus facility. The few transit operators in California that use CNG, have experienced numerous fires in both their buses and bus operation and maintenance facilities. Staff would need to return to Council at a later date with fiscal information and consequences that would include the increased cost of the bus acquisition, fueling station, and the required facility upgrades. ATTACHMENTS 1. Resolution 2. Summary of Fuel Paths and Regulation The following documents are available in the Council Reading File for your information: a. CARB Resolution 00-2 b. Final Regulation c. Presentation slides that summarizes the regulation L\Council Agenda Reports\CAR Regard SLA Transit's Fuel Path per CARB.doc C14 Attachment 1 RESOLUTION NO._ (2001 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING THE CITY OF SAN LUIS OBISPO'S INTENT TO FOLLOW THE CLEAN DIESEL FUEL PATH AS OUTLINED IN CALIFORNIA AIR RESOURCES BOARD (CARB) RESOLUTION 00-2 WHEREAS, the California Air Resources Board (CARB) is authorized to make regulatory amendments to reduce emissions from mobile sources; and WHEREAS, these amendments require the City of San Luis Obispo to meet certain obligations in the purchase, maintenance and upgrading of public transit buses used in revenue service; and WHEREAS, it is required by the California Air Resources Board, in accordance with the provisions of Title XIII of the California Code of Regulations, Sections 1956.1 — 1956.4 that the City select a compliance path and notify CARB of its intent to follow that path; and WHEREAS, staff recommends the adoption of the clean diesel compliance path to meet the California Air Resources Board amended Public Transit Bus Fleet Rule; NOW,THEREFORE,BE IT RESOLVED that the Council of the City of San Luis Obispo, who operates SLO Transit 1. Authorizes the City Administrator Officer to select the clean diesel compliance path allowed under the CARB Public Transit Bus Fleet Rule; and 2. Authorizes the City Administrator Officer to execute and file a compliance plan as required by the California Air Resources Board; and C1-5 3. Authorizes the City Administrator Officer to furnish such additional information as the California Air Resources Board may require in connection with submitted compliance plan, Upon motion of seconded by and the following roll call vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 2001. Mayor Allen Settle ATTEST: Lee Price, City Clerk APPROVED AS TO FORM: f Aoelojat� J J ge n, 91Y Attorney C1-6 Attachment 2 SUMMARY OF FUEL PATHS AND REGULATION n000 - 4.0 O.05. l 2-5* ::. 0.05: 7/2000 Ultra low sulfur diesel fuel Ultra low sulfur diesel fuel 10/2002 2.5 NO +NMHC 0.01 14NO +--1 0.03 10/2002 4.8 NO.,fleet average 4.8 NO,,fleet average 2003-07 Diesel particulate filter retrofit Diesel particulate filter retrofit 7/2003 3 ZEBs for large fleets (>200) 2004 0.5 0.01 2007 0.2 0.01 0.2 0.01 Notes. _ _.� Shaded areas show existing requirements and existing optional emission standards * -Optional standards. Although transit agencies on the alternative-fuel path are not required to purchase engines certified to these optional standards,it is expected that they will do so in order to qualify for incentive funding. C1-7