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HomeMy WebLinkAboutREP PWMTC 015 2019/07/08 2018-2020 REPORT OF THE COMMITTEE ON PUBLIC WORKS AND MASS TRANSIT DATE: July 8, 2019 Re: Comm. No. 336/Res. No. 205-19 PLACE: Council Chambers Hilo, Hawaii TIME: 9:02 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works and Mass Transit, to which was referred Resolution No. 205-19, reports as follows: Resolution No. 205-19, introduced by Committee Member Vice Chair Matt Kaneali`i- Kleinfelder, and transmitted via Communication No. 336, dated June 17, 2019,urges the County Administration to acquire hydrogen-powered buses for the Mass Transit Agency to increase the use of clean energy. Your Committee previously discussed the topic of electric battery and/or hydrogen-powered buses following a presentation from the Mass Transit Agency and the Department of Research and Development on June 18, 2019, which was placed on the agenda by Vice Chair Kaneali`i- Kleinfelder via Communication No. 330. At your Committee meeting on July 8, 2019, Vice Chair Kaneali`i-Kleinfelder began the discussion by referring to Resolution No. 238-06 (Draft 2), which requested the Finance Department to study the procurement of increasing percentages of high-energy efficient alternative fuel vehicles and report on the potential for net savings to the County over the lifetime of such vehicles. This resolution was approved by the County Council in 2006 and re-introduced for information and discussion purposes via Communication No. 336.1. Mass Transit Administrator Brenda Carreira was invited to provide an update on the county's path to acquire hydrogen-fueled buses. She said that despite a previous promise of two buses being available from Hawaii Volcanoes National Park,the County is receiving only one from the national park. That mini bus is not ready yet for service in the Hele-On fleet. Another bus is not in the system yet because it has not yet been dedicated to the County,nor is it ready to be on the road, but it has been painted in the Hele-On colors. With regards to the Request for Proposals (RFP) for new buses, the bus specifications for acquisitions under the General Excise Tax have been completed, she said, but the bids have not gone out and they could still be changed. There are four new diesel buses coming in through federal grants that cannot be changed. Current plans are for GET funds to purchase eight paratransit vans,three 40-foot buses, two 35-foot buses, and three 25-seat mini buses, all diesel powered. Estimated costs for electric buses are estimated to be between$300,000 and $600,000, and a hydrogen bus would cost about $1 million. PWMTC Report No: 15 PWMTC-15 Page 2 July 8,2019 Ms. Carreira said she put in an application for a grant for ten 40-foot buses. The RFP did not specify it was diesel. We will know in September if that is approved, she said. Of those ten buses, three would be used for a new Daniel K. Inouye Highway route, and there were other requests for this fiscal year for more buses. She mentioned the possibility of retrofitting older diesel buses to be hydrogen-powered, but with the age of the buses on the road(the oldest being built in 1995), most of them are on their last legs. Ms. Carreira shared that despite the good intentions with alternative fueled buses and double decker buses, the experience was "not good," and it would take several months of a hydrogen bus in service to evaluate its feasibility. She intended to use the bus on the Kawaihae Road route to see if it could handle the gradient. She said it would be"fiscally irresponsible"to commit to converting the entire fleet to hydrogen without a trial period first. She also cited the need to train the mechanics and understand how to resolve repair and maintenance issues. She estimated it would take until early next year to determine whether hydrogen buses would work or not. Vice Chair Kaneali`i-Kleinfelder was interested in retrofitting existing buses to run on hydrogen. He said a new diesel engine would cost$50,000,but if we retrofitted these buses for hydrogen, that would cost less than a new bus. Hydrogen buses are working in California and Europe, and we are at risk of losing our fossil fuel sources. He spoke in support of making the shift to hydrogen vehicles and away from diesel, even though the transition may become uncomfortable. Ms. Carreira said of the 15 diesel buses at the Mass Transit baseyard, about five of them were in a condition that potentially could allow them to go back on the road. Ms. Carreira estimated the cost to build hydrogen infrastructure for the County is about$2.5 million, and we do not have a federal grant for infrastructure, which would mean GET funds would be needed for construction. Transitioning to hydrogen would require using GET money to build the infrastructure first. Federal grant funds must be used for new buses and not the retrofitting of existing buses. It would be hard for her to justify spending$1 million in GET for a new bus, and Mr. Kaneali`i-Kleinfelder agreed, but he stated that he wanted to make good decisions for the future, and that ultimately it is going to be worth the cost. Ms. Carreira asked to clarify whether the intent of the resolution was to direct the county not to acquire electric buses and instead convert to all hydrogen. Mr. Kaneali`i-Kleinfelder said that the County could pursue both, but there is an infrastructure cost. He said Ms. Carreira posed an interesting question. Given her past experiences with alternative energy buses, she said she wanted to be clear on the Council's direction on hydrogen fuel, and that the responsibility for that direction is on the Council. Riley Saito, Energy Specialist for the Department of Research and Development, discussed the possibility of other"bridge"fuels other than diesel buses—namely, electricity, "clean natural gas," and hydrogen. He spoke of the community of Sunland-Tujunga in California, which has been making steps toward a hydrogen economy for the last three or four years, and that community believes hydrogen is 100 percent the way to go. Wil Okabe, Managing Director,told your Committee that the Administration supports hydrogen but in the near term is looking for a balance of transportation options because we do not have the infrastructure for wide scale implementation of hydrogen or electric buses. They will look into PWMTC Report No: 15 PWMTC-15 Page 3 July 8,2019 retrofitting diesel buses. Certain routes could be done with electric buses. He said this could be a paradigm shift for the whole County, and our whole island will have to change how we think about energy. Council Member Tim Richards noted that the State has set a 100 percent clean energy goal by 2045. He also said he was excited about hydrogen and the electrification of the County's vehicle fleet. He asked Ms. Carreira why there is a BYD electric bus on island but no charging station. Ms. Carreira replied that the charging station was a matter of building electric charging infrastructure at the Hilo baseyard as well as around the island. Mr. Richards envisioned a"portfolio"of buses running on different kinds of energy sources. In the short term the diesel fuel technology will still be needed but in order to transition is going to require a push. He also understood Ms. Carreira's caution in adopting new technology. Regarding the BYD electric bus, Ms. Canfeira said the issue was that it does not belong to the County, it cannot be insured. It is waiting on battery replacements and is sitting in the baseyard. None of the employees can drive it without it being insured. Council Member Valerie Poindexter supported a demonstration project and a balanced approach instead of a mass retrofit to avoid more broken buses on the island. She asked Mr. Saito about the geography of Sunland-Tujunga, and whether the topography, travel times, and populations were comparable to Hawaii County, or whether a comparable municipality has attempted a hydrogen demonstration project. Mr. Saito said he needed to revisit the webinar where Sunland was discussed. Ms. Poindexter said GET funds should be used to address road issues and not be funneled only to the Mass Transit Agency. Council Member Maile David asked how long it would take to retrofit five buses for hydrogen from procurement to installation. Ms. Carreira estimated it would take five to six months. Council Member Karen Eoff said the resolution urged the acquisition of hydrogen buses and she said she could support it because it moves us toward a goal. Council Member Aaron Chung also spoke in support of the resolution. He said Ms. Poindexter raised some good points about being careful about rushing to adopt new technology. He encouraged the Vice Chair to visit Sunland-Tujunga and see how it compares to Hawaii County. He also said nothing in the resolution is required; it is just urging an action. He offered a mix of hydrogen buses on flat areas and other efficient vehicles on inclines. Council Member Ashley Kierkiewicz asked if it were possible for Ms. Carreira to come back in about three months with a pilot program for hydrogen and electric vehicles. Mr. Okabe said the resolution will give the Administration the impetus to understand the direction of where the Council is going. He said Ms. Carreira definitely needs the support as we look at this type of technology. He said knowing that the Council supports this initiative gives the Administration the "green light"to move ahead. PWMTC Report No: 15 PWMTC-15 Page 4 July 8,2019 Ms. Carreira said three months for a future pilot program presentation would be appropriate. Mr. Okabe said a mix of larger and smaller buses should be evaluated. Ms. Carreira said the 25-seat hydrogen buses are considered mini buses. Chair Lee Loy appreciated the conversation for being ripe and robust, and mentioned that she would be introducing a communication at a future meeting to discuss infrastructure, training, equipment, and towing aspects. Vice Chair Kaneali`i-Kleinfelder described the "epiphany" he had about the unseen costs of j fossil fuels and that there is a cost in not making the change as well. He asked Mr. Saito about the cost of retrofitting a diesel bus to a hydrogen fuel cell. Mr. Saito said the cost was about $400,000. Mr. Kaneali`i-Kleinfelder noted that is still cheaper than a new bus. Mr. Saito anticipated more competitive prices could be available when an RFP is issued. t i Your Committee on Public Works and Mass Transit is in accord with the purpose and intent of Resolution No. 205-19, and recommends its adoption. 1 3 i i i ps AYES NOES ABS Ex Respectfully submitted, CHUNG X DAVID X COMMITTEE ON PUBLIC WORKS EOFF X AND MASS TRANSIT KANEALI`I-KLEINFELDER X KIERKIEWICZ X LEE LOY X POINDEXTER X K. LEE LOY, C RICHARDS X PWMTC REPORT NO. VILLEGAS X ADOPTED: JUL 2 4 2019