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Incentive-Based Program

Revised 03-01-10. ITEM 15. Incentive-Based Program. To Induce Conversion of Existing Operator Vehicle Fleets to Alternative Fuel Vehicles. MARCH 4, 2010. Angela Shafer-Payne  VP, Planning and Operations Paul Manasjan  Director, Environmental Affairs.

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Incentive-Based Program

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  1. Revised 03-01-10 ITEM 15 Incentive-Based Program To Induce Conversion of Existing Operator Vehicle Fleets to Alternative Fuel Vehicles MARCH 4, 2010 Angela Shafer-Payne VP, Planning and Operations Paul Manasjan  Director, Environmental Affairs

  2. Board Resolution No. 2009-0150R(Adopted and Approved December 3, 2009) • Approved implementation of Air Quality Management Plan (AQMP), except as it applied to implementation date for replacement of shuttle service vehicles to electric or alternative fuel vehicles (AFVs) • Authorized staff to set forth an incentive program that meets requirements of Section 2(b) of Exhibit A of Memorandum of Understanding (MOU) with CA Attorney General (AG) • Directed staff to consider all ground transportation providers in development of incentive plan, including taxicabs

  3. Time Extension Granted by AG • Section 2 (b) of the MOU required the Airport Authority to have either a mandatory or an incentive-based program in place by January 1, 2010 • However, time extension was granted by the Attorney General to allow for implementation of an incentive plan no later than March 5, 2010

  4. Two Options in AG MOU Section 2 (b) provides for 2 implementation options: • Mandatory Conversion • -MOU default mechanism • Incentive-Based Program • -Authority-developed plan By Spring 2010, 24 of 29 (83%) Airport-operated shuttles will be converted to compressed natural gas (CNG)

  5. Mandatory Shuttle Conversion* *Default option in MOU with California Attorney General

  6. Board Direction Given at February 4th Meeting 1 • Establish FY 2017 as target date to achieve 100% conversion of ground transportation provider vehicles to AFVs with understanding that feasibility will be re-assessed annually • Standardize Vehicle Age Policy of 7 years by including hotel/motel courtesy and off-airport parking shuttles as vehicles subject to this requirement • Provide reduced user fees for hotel/motel courtesy fleets that consolidate into a single, dedicated operation • Include taxicabs in definition of ground transportation providers in development of incentive plan 2 3 4

  7. Board Direction Given at February 4th Meeting (cont’d) 5 • Implement an incentive-based program for ground transportation vehicles that provides • reduced user fees as annual flat rate and/or trip fees for alternative fuel vehicles (AFVs) and • increased user fees as annual flat rates and/or trip fees for non-alternative fuel vehicles (NAFVs) at the following percentage rates per fiscal year • Include clean air vehicles (CAVs) under the California statutory definition as approved option • Provide information to Board about: • specific stakeholder outreach and meetings to each affected stakeholder group • statistics from other airports regarding fees and other incentives • impacts of incentive-based program on FY2011 permit fees presented in actual dollars 6 7

  8. Incentive Program Compliance Goal of 100% Conversions by FY 2017* 1 Incentive Program: 100% Conversion by July 1, 2017 MOU: 100% Conversion by January 1, 2015 % Vehicle Conversions to AFVs 2½ year lag time to allow for economic and infrastructure developments *Goal feasibility evaluated annually

  9. Standardized Vehicle Age Replacement Policy 2 • Current 7-year replacement policy applies only to taxicabs and vehicles for hire • Standardize policy by applying 7-year age limit (based on vehicle model year) to all ground transportation provider vehicles • Example: A 2011 model shuttle bus purchased in 2010 would need to be replaced by 2018

  10. New Impacts From 7-Year Vehicle Replacement Policy

  11. Consolidation Incentive for AFV Hotel/Motel Courtesy Shuttles 3 Note: All courtesy shuttle providers would still be subject to increased user fees for non-alternative fuel vehicles

  12. Possible Consolidated Courtesy Shuttle Routes

  13. Applicability of Incentive Program* 4 * Rental car shuttle conversions and consolidation will be addressed as part of CONRAC concessionary agreements

  14. Implement an incentive-based program for ground transportation vehicles • reduced user fees as annual flat rate and/or trip fees for alternative fuel vehicles (AFVs) and • increased user fees as annual flat rates and/or trip fees for non-alternative fuel vehicles (NAFVs) at the following percentage rates per fiscal year: 5

  15. AQMP & GTMP: separate, but aligned GTMP AQMP

  16. GTMPFee Schedule withAQMPFee-Based Incentives GTMP User Fees (adopted 1/7/10) AQMPFeeIncentives for AFVs

  17. “Clean Air Vehicle” Option 6 • Pursuant to California Vehicle Code Section 5205.5(e), certain vehicles are designated as “Clean Air Vehicles,” such as the Toyota Prius, Honda Civic Hybrid, and others • Include “Clean Air Vehicles” as conversion option under incentive program • Most applicable to taxi and limo fleet conversions

  18. Survey of Other Airport Vehicle Conversion Programs

  19. Airports with Mandatory Alternative Fuel Vehicle Conversion Programs

  20. Stakeholder Outreach

  21. Stakeholder Outreach

  22. Stakeholder Outreach

  23. Stakeholder Outreach

  24. Feb 19thSpecial Advisory Committee Meeting Range of concerns/comments raised: • Requirements are not enough of an incentive or disincentive to affect change • Requirements are currently not economically or technologically feasible • Some expressed preference for mandatory program over incentive-based • Some suggested a tiered incentive plan be considered (A summary of meeting notes are forthcoming)

  25. Feb 23rd Ground Transportation Advisory Group (GTAG) Meeting Range of concerns raised: • Many expressed concerns that incentives were not enough to induce conversions to alternative fuels • A few preferred a mandatory conversion program over fee-based penalties for non-compliance • A few were not aware Ground Transportation User Fee Structure was already adopted • Some suggested that a 10-year vehicle age requirement be allowed for alternative fuel vehicles • Several present expressed interest in forming a working group to assess program feasibility over time and explore regional solutions to alternative fuel infrastructure

  26. San Diego Airport Ground Transportation Alternative Fuels Working Group • Team Effort: • Airport Authority Staff (Paul Manasjan, Jim Myhers, Brett Caldwell) • Hotel/Motel Association (Charles Holladay) • Off-Airport Parking Association (Adrian Kwiatkowski) • Door-to-Door Shuttles (Carelyn Reynolds, Coronado Livery) • Taxicabs (Tony Hueso, USA Cab) • Limos (Alan Shandling, Greater California Livery Association) • Other relevant stakeholders • Purpose: • Share information and provide assistance on grant funding and tax credit opportunities for fleet conversions • Review latest vehicle and infrastructure developments in alternative fuels and assess both economic and technological feasibility • Meet with local agencies and organizations (SANDAG, MTS, SDG&E, California Center for Sustainable Energy, Clean Fuels Coalition, San Diego Regional Sustainability Partnership, alternative fuel and vehicle providers, etc.) to explore regional solutions to infrastructure development • Meet Regularly (quarterly or more as needed) • Airport Authority staff will coordinate and facilitate meeting

  27. Annual Incentive Program Review • Incentive Program shall be reviewed annually to determine if the program requirements are effective in helping the Authority achieve its goal of 100% vehicle conversions to AFVs by 2017 • Program requirements shall be reviewed to determine if adjustments are necessary: • increasing or decreasing rates • adjusting age requirements • offering additional incentives to stakeholders • Economic and infrastructure developments associated with AFV conversions, including the availability of publicly accessible alternative fuel stations and vehicles, shall be assessed annually and Program adjusted accordingly to address financial and technological feasibility factors.

  28. Review of Incentive Program Provisions

  29. Review of Incentive Program Provisions

  30. Review of Incentive Program Provisions

  31. Staff Recommendation • Adopt the Incentive Program as presented in accordance with the terms and conditions of the MOU with the California Attorney General •  Authorized the President/CEO to adopt further rules and regulations as terms and conditions of the Authority’s licenses, permits and contracts with the public commercial ground transportation providers serving the Airport and to take such other actions as are necessary to enforce the Incentive Program

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