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Report ID: 22-457   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 8/10/2022 Final action: 8/10/2022
Recommended Action: Consider adoption of Resolution No. 22-032 authorizing the General Manager or his designee to file and execute applications with the Metropolitan Transportation Commission (MTC) for MTC's FY2022 Transit Capital Priorities (TCP) Zero-Emission Bus (ZEB) Infrastructure Set-Aside Program, including Federal Transit Administration (FTA) Sections 5307 funds, to fund the Hydrogen Fueling Infrastructure project at Division 6 in Hayward.
Attachments: 1. STAFF REPORT, 2. Att.1. Resolution 22-032 TCP ZEB Infrastructure, 3. Master Minute Order

TO:                     AC Transit Board of Directors                                          

FROM:                                             Michael A. Hursh, General Manager

SUBJECT:                     FY2022 Transit Capital Priorities ZEB Infrastructure Set-Aside Program                     

 

ACTION ITEM

AGENDA PLANNING REQUEST:   


RECOMMENDED ACTION(S):

 

Title

Consider adoption of Resolution No. 22-032 authorizing the General Manager or his designee to file and execute applications with the Metropolitan Transportation Commission (MTC) for MTC’s FY2022 Transit Capital Priorities (TCP) Zero-Emission Bus (ZEB) Infrastructure Set-Aside Program, including Federal Transit Administration (FTA) Sections 5307 funds, to fund the Hydrogen Fueling Infrastructure project at Division 6 in Hayward.

Body

 

STRATEGIC IMPORTANCE:

 

Goal - Financial Stability and Resiliency

Initiative - Zero Emission Programs

 

The proposed project will design and construct fueling and maintenance facilities to support ZEB operations, thus further advancing the District’s Zero-Emissions Bus Transition Plan and enabling the District to begin providing service with zero-emission buses at Division 6.

 

BUDGETARY/FISCAL IMPACT:

 

Staff recommends applying for approximately $5.56 million in Fiscal Year 2021-22 TCP ZEB Infrastructure Set-Aside Program grant funds to construct a hydrogen fueling station at Division 6 and install other supporting maintenance facilities and equipment. A twenty percent match of approximately $1.4 million is required, which will come from District capital or other grants.

 

BACKGROUND/RATIONALE:

 

AC Transit remains committed to transitioning the bus fleet to 100% zero-emission buses by 2040. To accomplish this goal, AC Transit’s Board of Directors approved the ZEB Transition Plan which serves as a blueprint for how the District is planning to achieve a full transition to zero-emission technologies by 2040. Based on AC Transit’s current fleet replacement schedule and planned procurements, Division 6 in Hayward, is the third largest operating Division which is a natural progression for ZEB investment after Division 4 Oakland, and Division 2 Emeryville. The District needs to begin investing in ZEB deployments at Division 6 to build up infrastructure early on to prepare for larger bus procurements as we approach 2040.

 

Located at the edge of our southern service area and with a larger property footprint, Division 6 allows for ZEB infrastructure to be installed without impacting existing fleet and facilities space. The routes that run out of Division 6 are long with high deadhead travel that would require long range ZEBs. Additionally, deploying ZEBs from Division 6 will provide a significant benefit to the District with expanded operational capability and increased resiliency capacity.

 

The District applied for a Transit and Intercity Rail Capital Program grant in March 2022 for the Division 6 Hydrogen Fueling Infrastructure project but did not win a grant award. The MTC Commission approved and established a ZEB Infrastructure Set-Aside program within their TCP program in May 2022 to apportion funds specifically for ZEB infrastructure to assist operators in the transition to zero-emission buses. Funds are distributed according to fleet sizes in each urbanized zone. For FY 2021-22, AC Transit is allocated approximately $5.56 million.

 

ADVANTAGES/DISADVANTAGES:

 

Applying for the MTC TCP ZEB Infrastructure Set-Aside funds would allow the District to expand its zero-emission program into another Division, and to continue converting the fleet into a zero-emission fleet.

 

Applying for and accepting the grant will require the District to pursue additional funds to complete the project. The MTC TCP ZEB Infrastructure Set-Aside program is anticipated to continue for two more years, therefore the District will have the opportunity to apply for and receive more funding through the same program.

 

ALTERNATIVES ANALYSIS:

 

Staff also considered the Training and Education Center Modernization project, however the hydrogen fueling station at Division 6 fits the grant program requirements more closely and fulfills the greater need to accommodate the next expansion of ZEBs.

 

PRIOR RELEVANT BOARD ACTION/POLICIES:

 

SR 22-112 Application for Fiscal Year 2021-22 Transit and Intercity Rail Capital Program Funds

SR 22-319 AC Transit Zero Emissions Bus Transition Plan

 

ATTACHMENTS:

 

1.                     Resolution 22-032

 

Prepared by:

Eve Ng, Capital Planning and Grants Manager

 

Approved/Reviewed by:

Cecil Blandon, Director of Maintenance

Joe Callaway, Director of Capital Projects

Ramakrishna Pochiraju, Executive Director of Planning & Engineering

Salvador Llamas, Chief Operating Officer

Chris Andrichak, Chief Financial Officer

Jill A. Sprague, General Counsel