Alternative Fuel Requirements for School Districts. Peter Moulton Alternative Fuels & Vehicles Lead Energy Division

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Alternative Fuel Requirements for School Districts Peter Moulton Alternative Fuels & Vehicles Lead Energy Division May 2016

Extent Practicable Rules Mission: Define practicability and how state and local governments will be evaluated in efforts to operate publicly owned vessels, vehicles and construction equipment from electricity or biofuel, to the extent practicable. CNG and propane can be considered if electricity and biofuels not reasonably available. State Agencies: June 1, 2015 (effective May 2013) Local Governments: June 1, 2018 Transit agencies with majority of active revenue fleet using CNG exempt Exemption for engine retrofits that void warranties Authority to exempt emergency response vehicles Highest level of biodiesel warranty when purchasing diesel vehicles

Rulemaking Process 1) First Step: Define local government 2) Work Group: WSAC, AWC, PFMA, WSTA, WPPA, utilities, others 3) Research: State and Federal policies and programs 4) Reporting Threshold: Data gathering and tracking 5) Define: Compliance expectations 6) Review: Public hearing this Spring, adoption by Summer

Definitions Biofuel: Biodiesel, ethanol, biomethane, renewable diesel, DME Lifecycle Cost: Total cost of ownership over life of asset, including purchase or lease cost, financing costs, taxes, incentives, operation, maintenance, depreciation, resale or surplus value, engine conversion, and incremental cost of refueling infrastructure. Social cost of carbon no longer included in local government rules. Practicable: Extent to which alternative fuels and vehicles can displace gasoline and diesel in vehicles, vessels and construction equipment as determined by multiple dynamic factors including cost and availability of fuels and vehicles, changes in fueling infrastructure, operations, maintenance, technical feasibility, implementation costs, and other factors. Vehicles: Motorized vehicles, watercraft and construction equipment (not aircraft, rail or generating equipment).

Key Considerations Functional Differences: Equipment and fuels Duty Cycles: Timelines and lifecycle costs Fleet Size: Volume of fuel, number of vehicles Geographic Availability: Infrastructure, seasonality Program Implementation: Administrative cost, integration Phased Approach: Different fuel applications or quantities

Program Participation All Jurisdictions Comply Annual Reporting Agencies >50,000 gallons/year: agencies (12) & universities (4) Local Governments >200,000 gallons/year: cities (10), counties (18), transit (17), schools (16), PUDs (3), ports (2), RFD (1) Fleet composition Procurement plans Obstacles and opportunities Technical Assistance Alternative Fuels & Vehicles Technical Advisory Group

School District Reporting Battle Ground Bethel Central Kitsap Edmonds Evergreen (Clark) Federal Way Issaquah Kent Lake Washington Northshore Pasco Puyallup Seattle Spokane Tacoma Vancouver (Everett)

Program Compliance: Vehicles Renewable Natural Gas (biomethane) Blends of 20% RNG or more, regardless of lifecycle cost Electric & Hybrid Electric Vehicles Models that meet operational needs? Suitable for routine use? Compare lifecycle cost, including charging infrastructure, to vehicle you d otherwise procure (equivalent for locals, within 5% for agencies) Alternate Fuel Vehicles (natural gas and propane) Include engine conversions and changes to fueling infrastructure and maintenance facilities in lifecycle cost Charging Infrastructure Encouraged for fleet parking and maintenance facilities, incorporate into new construction and major remodels

Program Compliance: Biofuels Biodiesel/Renewable Diesel/DME Agencies On annual basis, B5 for Ferries (price within 5%), everyone else B20 Local Government B5 if cost within 1% of ULSD #2 on annual basis Blends up to B20 if not restricted by warranty and cost (including additives) within 1% of ULSD #2 on annual basis Ethanol Flex-fuel (E85) if price at least 20% below gasoline Renewable Natural Gas No more than cost of conventional natural gas

Electrified Buses DES Transit Master Contracts Heavy-duty (#09214, revised 2015): King County Metro, Pierce, Everett, Clallam, Grant, Jefferson, Mason, Whatcom, Link, C- TRAN (Vancouver), Spokane, Yakima, Twin, Ben Franklin, Pullman, Community (Snohomish), Sound Cut-away (#06209, revision underway) School Bus Vendors Bryson, Creative Bus, Harlow s, Northwest Bud, Schetky NW Creative Bus/Motiv Power partnership (Starcraft e-quest XL, 48 seats, 85 mile range, ~$250,000, nearly complete cost recovery)

For more information: Peter Moulton Senior Energy Policy Specialist (360) 725-3116 peter.moulton@commerce.wa.gov electricdrive.wa.gov www.commerce.wa.gov