PROPOSAL:

Approve and adopt staff recommendations derived from the Plug-in-Partner campaign for promoting commercial production of Plug-in Hybrid Electric Vehicles.

SYNOPSIS:

By signing a statement of support to join the American Public Power Association/Austin Energy Plug-In-Partners, Burbank Water and Power (BWP) became a founding partner in this national grass-roots initiative, demonstrating to automakers that a market for Plug-in Hybrid Electric Vehicles (PHEV) exists today.  Staff recommends additional steps outlined in this memo to further accelerate the development of PHEVs.

BACKGROUND:

As a committed community member and partner to every resident and business in town, the City of Burbank contributes to the betterment of our city in part through a City-wide environmental commitment.   Burbank has been a leader in promoting alternative fuels to help evaluate and demonstrate the viability and environmental benefits of clean fuel alternatives that allow the country to move toward foreign oil independence.  Some of the ways Burbank has demonstrated that commitment:

• Conception and construction of Compressed Natural Gas and Hydrogen fueling stations.

• Purchase of propane powered vehicles and installation of a fueling station that demonstrates the safety and cost effectiveness of this fuel, particularly in fleet situations.

• Participation in the installation of several electric vehicle charging stations throughout the city to provide both the City�s multi-vehicle fleet and private electric vehicles a place to charge at no cost. 

• Sponsorship of a Burbank electric vehicle users group to gain experience in user needs and encourage this groundbreaking technology.

• Purchase of compressed natural gas vehicles as a major element of the City�s fleet, as well as the purchase of gasoline/electric hybrid vehicles. 

In California, electric vehicles seemed to hold great potential in the 1980�s and the City jumped in from the beginning of the experiment by purchasing battery powered fleet vehicles and installing several chargers around Burbank, including at City facilities.  Though this technology had noble goals, cleaner air and foreign oil independence, the battery technology had not advanced to the stage where it could meet the public�s expectations for range.  Once the State of California dropped the mandated construction of these vehicles and the leases expired, these vehicles started to shrink from the public eye. 

In the shadow of the electric car has risen the current �green� darling of the road, the gas-electric hybrid vehicle.  Models such as the Toyota Prius and Honda Civic Hybrid have become extremely popular and as a result are sold at a premium even over their increased sticker price at dealerships.  The problem is their fuel economy is only marginally better!  In order for fuel savings to outweigh costs, most drivers need to keep these cars for seven years or more.  Plus the hybrids still only fuel with gasoline.  Some don�t even use their electric capability for fuel economy, but instead for increased performance.  So the manner in which the various vehicle components are sized, packaged, fueled, and controlled still substantially impacts our local air quality � still some of the worst in the nation - mostly due to vehicle exhaust. 

Some say the next big transportation evolution will be cornered by the Fuel Cell and Hydrogen.  Others tout E-85 ethanol made from fermented corn and maybe someday, even simple cellulose.  Most say these improvements in auto transportation are likely to be too far in the future to help reduce gasoline demand enough to stabilize oil prices.

City staff feels there is an interim solution that blends the best of the gasoline hybrid and the all-electric car; as a result, we are promoting plug-in hybrids.  PHEVs are like regular hybrids but with larger batteries and the ability to re-charge from a standard electric outlet, typically done off peak. PHEVs represent the best of both worlds: most local travel is electric, yet the vehicle has unlimited gasoline range.  The first 30 to 50 miles are equivalently fueled with 75 cent per gallon electricity and generate almost zero auto emissions.  Since most all of the US electric supply is generated without oil, this helps the US reduce our need for imported oil.  When a longer range is necessary the PHEV can switch back to being a normal gasoline-electric hybrid with unlimited range, thanks to the existing gasoline distribution system.  This dual fuel concept offers substantial air quality benefits by getting 100 miles or more to a gallon of gasoline.

The problem: No auto manufacturer is providing for commercial availability of PHEVs.

Even without leadership by the major auto manufacturers, organizations including the South Coast Air Quality Management District and Electric Power Research Institute have supported PHEV development since 2000.  These efforts are just beginning to pay off.  To demonstrate, DaimlerChrysler has built five PHEV Sprinter delivery vans and CalCars has done numerous aftermarket conversions of Toyota Prius vehicles to PHEVs.  These demonstrations offer a proof of concept and will hopefully generate enough buzz to get the manufactures� attention and ensure the adoption of this technology.

There has also been national attention on PHEV technology as a means to reduce petroleum dependence, with diverse supporters including legislators, environmentalists and utilities.  Austin Energy, the electric utility for Austin, Texas, also recently initiated a national �Plug-in Partners� campaign to build a market for PHEVs by soliciting the top 50 U.S. cities (by population) and their utilities to support PHEVs through incentives, fleet commitments, and educational outreach to communities.  Burbank joins other South Coast utilities in this effort such as the Cities of Los Angeles and Irvine.

By taking the first step of joining this campaign, Burbank has made a commitment to promote this technology, educate our customers of its value, leverage existing programs, and to do whatever is feasible to accelerate PHEV commercialization, including the following:

RECOMMENDED ACTIONS:

�         Add PHEVs as a qualifying vehicle to the existing electric vehicle mileage credit in BWP�s Rules and Regulations.  PHEV users would receive a mileage credit of $0.01346 per mile, credited on their municipal services bill.

• Request the City Council pass a Resolution supporting PHEVs in Burbank and the goals of the Plug-In-Partner campaign (see attachment). 

• Submit a �soft� fleet order commitment form to the plug-in-partnership to show automakers the City of Burbank�s support for PHEV vehicles.  According to estimates from fleet managers from Burbank Water and Power and the City�s Public Works Department, the City expects as many as 88 vehicles that could be replaced over the next few years with PHEVs. 

• Consider establishing a vehicle rebate to foster support among our customers.  For instance, a $2,000 rebate could be provided to the first fifty PHEV owners in Burbank.

• Place a community support petition in our lobby for customers to sign and forward to the Plug-In Partnership.

• Add a page to our web site to provide education about PHEVs and gauge customer interest.  Have a sign up petition there as well.

• Encourage other local utilities and Burbank businesses to join the effort through participation in soft fleet orders, petitions posted on their websites, etc.  The use of BWP Key Account personnel could augment this approach.

• Support legislation and policies promoting PHEVs.  This may include opportunities related to local and statewide legislation and other policy formulation that will promote the manufacturing of PHEVs.

• Provide literature describing the Plug-In Partnership and PHEVs for distribution to customers in the lobby and at events.

• Report progress back to APPA and national web site to show auto makers that there is support for these vehicles.

RECOMMENDATION:

That the City Council (1) adopt the attached resolution expressing support for PHEVs in Burbank and the goals of the Plug-In-Partner campaign and (2) authorize staff to pursue the other Recommended Actions listed in the Staff Report to promote Plug-In Hybrid Electric Vehicles and support the Plug-in Partners campaign in its efforts of bringing PHEVs to commercial production and distribution.

RED:JF:JM:jj

CITY OF BURBANK RESOLUTION for PLUG-IN CAMPAIGN

WHEREAS, the over-reliance of America on foreign oil has become a growing and serious threat to the economic vitality and national security interest of the United

States; and

WHEREAS, automobile emissions are a major contributing factor to global warming and to smog in our cities, which threaten the health of our citizens and the sustainability of our planet; and

WHEREAS, the imbalance between gasoline resources and worldwide demand is escalating gasoline prices at an alarming rate and to levels that overburden commerce, hurt economic growth and cause serious hardship on our citizens; and

WHEREAS, the technology exists today to build flexible-fuel plug-in hybrid electric automobiles that could reduce oil imports, fuel costs to our citizens and our economy, and air emissions by dramatic margins; and

WHEREAS, the City of Burbank is partnering with many of the nation�s largest cities to urge automakers to mass produce plug-in hybrid vehicles for the substantial economical, environmental and strategic reasons outlined; and

WHEREAS, the City of Burbank is officially launching a community-wide campaign to promote the mass production of plug-in hybrid vehicles;

NOW, THEREFORE, BE IT RESOLVED that the City of Burbank makes a commitment to support local, state and federal policies and take appropriate local actions that will promote flexible-fuel plug-in hybrid vehicles. 

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