ITEM:		CONSENT CALENDAR
2.	AUTHORIZE PURCHASE OR LEASE OF TWO NEW ELECTRIC VEHICLES AND APPROVE ELECTRIC VEHICLE INCENTIVE REPLACEMENT PROGRAM REIMBURSEMENT AGREEMENT WITH THE MONTEREY BAY AIR RESOURCES DISTRICT
Meeting Date:			November 14, 2016	Budgeted:	Yes
From:			David J. Stoldt,	Program/	Capital Assets
			General Manager	Line Item No.	XX-XX-914000
Prepared By:			Suresh Prasad	Cost Estimate:	$70,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on November 7, 2016 and on a vote of 3 - 0 recommended approval.
CEQA Compliance: N/A

SUMMARY: California Assembly Bill 2766 (AB2766), signed into law in 1990, permits the Monterey Bay Air Resources District (MBARD) to allocate a $4.00 per vehicle registration surcharge fee towards projects that reduce motor vehicle emissions such as zero emission vehicles, roundabouts, traffic signal coordination, or vanpools. Funds may also be used for related planning, monitoring, enforcement, and technical studies. Funds are available to public agencies in Monterey, San Benito and Santa Cruz Counties.

On March 16, 2016, the MBARD Board authorized this year’s AB2766 Motor Vehicle Emission Reduction Grant Program.

On May 16, 2016, the District filed a grant application with the MBARD for the purchase of two electric vehicles under category 2, Electric Vehicle Replacement Incentive Program, of the AB2766 FY2015 program. One of the new electric vehicles will replace the 2004 Ford Taurus currently used as a pool car within the Administration and Conservation Department. The second vehicle will replace the 1995 Ford Explorer and will primarily be used for the Conservation Department.

On September 21, 2016, the MBARD Board awarded approximately $1 million to selected projects. Eligible projects must reduce motor vehicle emissions and/or meet other criteria described in the grant packet. Only public agencies may apply for projects, which must be implemented in Monterey, San Benito and/or Santa Cruz Counties.

On October 18, 2016, the District was notified by MBARD that its grant application filed in May 2016 has been approved towards purchase or lease of two electric vehicles. A copy of the reimbursement agreement from MBARD is attached as Exhibit.

The Electric Vehicle (EV) replacement incentive program is limited to a recommended cap of $10K. New vehicles may be purchased or leased (minimum of 3 years required). Certified used vehicles may be purchased with a funding cap of $7500 (remaining battery life must be disclosed at time of purchase). Match funds are required for eligibility.

Both vehicles scheduled to be replaced has been on the replacement schedule and is included in the FY 2016-2017 Budget. The replaced vehicles will have to be destroyed or sold out of the State to satisfy the requirements of MBARD Agreement.

RECOMMENDATION: District staff recommends authorizing purchase or lease of two new electric vehicles at a cost not-to-exceed $70,000 and also authorize the General Manager or the Chief Financial Officer to execute a reimbursement agreement with MBARD relative to the reimbursement of $20,000 towards the purchase of two electric vehicles.

BACKGROUND: In 1990, California Assembly Bill 2766 (AB2766) was signed into law, which permits the MBARD to allocate a $4.00 per vehicle registration surcharge fee towards projects that reduce motor vehicle emissions such as zero emission vehicles, roundabouts, traffic signal coordination, or vanpools. Funds may also be used for related planning, monitoring, enforcement, and technical studies. Funds are available to public agencies in Monterey, San Benito and Santa Cruz Counties.

On March 16, 2016, the MBARD Board authorized this year’s AB2766 Motor Vehicle Emission Reduction Grant Program. On September 21, 2016, the MBARD Board will award approximately $1 million to selected projects. In addition, each year the MBARD may recover grant funds from completed projects with a residual balance and projects that were not completed or never initiated. These disencumbered funds are then returned to the grant program budget. The current maximum project award is $200,000. However, certain qualifying emission reduction projects that exhibit fixed costs that represent 75% or greater of the total project cost are eligible for awards up to $400,000. Eligible projects must reduce motor vehicle emissions and/or meet other criteria described in this packet. Only public agencies may apply for projects, which must be implemented in Monterey, San Benito and/or Santa Cruz Counties.

Emission reduction projects must enable reduction of ozone precursor emissions (ROG, NO_x) and PM from vehicle sources. Although only public agencies may apply and receive funds, private entities may implement the projects under contract to these agencies.

EXHIBIT:

2-A MBARD Electric Vehicle Incentive Replacement Program Reimbursement Agreement

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