City Council Agenda and Packet 2023 10 10 SP

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Renewably Powerable I Fleet Electrification Fleet Conversion Plan Transitioning from internal combustion engine (ICE) vehicles to EVs can substantially lower overall carbon emissions. It is recommend that the City replace vehicles with EVs after the current vehicle has met its replacement criteria. Early replacement is not assumed in the analysis - simply a year -over -year swap with an EV once the vehicle reaches the appropriate mileage or service life based on the vehicle type (i.e.l2yr/120,000 for most light duty vehicles). Fleet Fuel Emissions Over Time 2023-2040 N 450 0 400 350 300 _ $280K $60K 840K $2.4M $50K in E $460K $630K $250K $50K 250 S670K $70K $50K ■ 200 $540K $260K 150 Net Decarbonization Costs` $410K $140K 100 $2M g290K $B70K $540K $200K $200K S3.4M $80K $480K Net Decarbonization Costs = Like for Like ICE(-) Electrified Fleet EV S1.1M $780K S790K $160K $DOK 50 $140K $300K $1.9M $850K $640K $560K 0 Baseline 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Decarbonized Vehicle Availability Not all vehicles in the City's fleet have suitable replacements commercially available. The current EV market is dominated by light duty vehicles, with emerging options in pickup and SUV categories. There currently are no manufactures that outfit an EV for police vehicle use. However, the market is rapidly changing so over the course of the next 5 years new innovation and demand should allow for police patrol vehicles to comes to market. Some vehicles will need to be replaced before there is an EV equivalent on the market, in those cases it is assumed that a new ICE vehicle will be purchased and then will be replaced with an EV in the next cycle. It is assumed all type 2 vehicles (mostly police patrol vehicles) will not have an EV equivalent until 2027 and all type 3, 4, and 5 vehicles until 2030. Fleet Conversion Life -Cycle Cost Analysis (2023-2040) Summary of Financial Metrics 2023-2040 Decarbonized Reduction EVs have a higher initial capital cost, but lower fuel and maintenance costs than ICE vehicles. Fueling Vehicle Fuel Maintenance Total Life -cycle from Baseline in 2040 Emissions vehicles using electricity is approximately 25 % the cost of gasoline. Maintenance costs are 50-75 % of gasoline equivalents. Some of the initial cost is offset by federal incentives. Overtime, initial costs for Scenario [$] [$] [$] [$] [Tonnes CO2e] [ %] EVs are also trending downward as production volumes increase and battery costs decreases. Like -for -Like Over the next 17 years, the Total Cost of Ownership (TCO) of replacing vehicles with EVs would be (ICE) comparable with ICE vehicles. The amount of CO2 emissions saved would be -9 million lb. Analysis assumes 2.5 % inflation, electric rate inflation of 2.44%, and cost escalation of 2.65 %. Initial cost is Electrified Fleet** inclusive of federal incentives for EVs(both passenger and heavy duty). (EV) $14.5M $3.911 $1.6M $20M 7,300 - $18.0M $1.7M $1.2M $21M 3,100" 97% **Costs & Emissions are based on the fleet conversion happening overtime and account for both costs and emissions associated with the existing ICE vehicles before they are electrified. CITY OF LOUISVILLE I FINAL REPORT V3 1 INTERNAL DECARBONIZATION PLAN 117 30