Examination of Transit Agency Coordination with Electric Utilities (2024)

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CHAPTER 1 Introduction Project Background and Objectives This synthesis examines partnerships between transit agencies and electric utilities as they work together to transition transit bus fleets in the United States to battery electric buses. Battery electric bus (BEB) deployments require substantial investments in charging infrastructure and place new demands on the power grid. For transit agencies, using electricity to power a bus fleet is significantly different from what agencies have been accustomed to with traditional transit bus fuels like compressed natural gas and diesel fuel. For utilities, providing electricity to power bus fleets involves utilities stepping into an entirely new role—that of a transportation fuel pro- vider. Both transit agencies and utilities face a steep learning curve. To effectively manage this transition, utilities and transit agencies must work closely together in ways that have not been typical for both transit bus agencies and electric utilities. This synthesis focuses on documenting current practices employed by transit agencies in partnering with electric utilities; explaining the regulatory framework under which utilities operate in the United States and available programs or policies to support transit bus electrifica- tion; and giving specific examples of how agencies and utilities are creating these new partner- ships, whether for deploying BEBs on a few routes or across their entire network. Approach and Methodology The project began with a scan of existing research, reports, and datasets on agency-utility collaborations and utility programs to support transit in adopting battery electric buses. This literature review helped identify resources that are available to transit agencies looking for guidance on working with their utility. It also provided insight into the current state-of-utility activities around electric transportation generally—this was used to gain insight into the oppor- tunities and challenges for transit agencies working with utilities. The review involved materials from, and discussions with, the associations representing the three major categories of utilities in the United States: the Edison Electric Institute (EEI), rep- resenting investor-owned utilities; the American Public Power Association (APPA), represent- ing municipal and public utilities; and the National Rural Electric Cooperative Association (NRECA), representing rural co-ops. A survey for transit agencies was developed and implemented to ask them whether they had or were in discussions about various types of utility support for battery bus deployment in transit operations. The full survey can be found in Appendix B. The objective of these surveys was to provide a snapshot of the state-of-utility support for transit bus electrification in terms of policies, the degree to which transit agencies are aware of 4 

Introduction  5 Table 1.   Case example characteristics. Case Example Agency Size Climate Operating BEB Program Partner Utility Environment Stage Governance Type Metro Transit, Large High and extreme Urban; some Pilot Regulated Minneapolis-St. low suburban investor-owned Paul (MN) temperatures; utility snow Roaring Fork Small High and low Rural Pilot Cooperative Transportation temperatures; utility Authority (CO) elevation San Diego MTS Large Temperate Urban; some Beyond pilot Regulated (CA) rural investor-owned utility Pinellas Mid-size High Urban Pilot Regulated Suncoast Transit temperatures; investor-owned Authority (FL) hurricane utility; affiliate conditions subsidiary Charlotte Area Mid-size High and low Urban Beyond pilot Regulated Transit System temperatures investor-owned (NC) utility; affiliate subsidiary King County Large Temperate Urban Beyond pilot Public power Metro (WA) Missoula Urban Small High and extreme Urban; Beyond pilot Regulated Transportation low suburban investor-owned District (MT) temperatures; utility snow and able to avail themselves of these policies, and highlight model examples of agency-utility collaboration. The surveys served to help explain the overall trends in agency-utility collaboration and then led to the selection of a group of case examples that would represent a cross-section of agencies and utilities and various operating contexts, including • A small, medium, and large agency • Agencies in an early or pilot stage and those in a more advanced deployment stage • Agencies in varying climates • Agencies in rural and urban areas • Utilities with different governance structures • A variety of levels and types of collaborations, including an example of collaboration that has not been fruitful to date, to highlight that some collaborations can be challenging The selected case examples have the characteristics shown in Table 1. Finally, the research team used the findings from the case examples, survey, and literature scan to identify research gaps. How to Use This Report The report is primarily intended for transit agencies that may be at a pilot or early stage of BEB deployment. It specifically targets agency staff responsible for the implementation of a BEB program such as facility and fleet managers. This report is intended to help these individuals 

6   Examination of Transit Agency Coordination with Electric Utilities understand the overall landscape of utility-agency collaborations and learn how other agencies have approached their relationship with the electric utility. As previously noted, many bus transit agencies do not have experience working with their electric utility in the manner required for BEB deployments. The report can also be used by electric utility representatives responsible for working with transit agencies in the utility’s service territory that are adopting BEB fleets, especially those utilities that do not already have a designated manager for their transit bus agency customers. Many utilities do not have experience working with a transit bus fleet as a fuel provider and may not understand how transit agencies operate. Overall, the report is intended to help spur dialogues between transit bus fleet managers, facility managers, and utility planners who are needed for successful BEB infrastructure planning and operation. The report provides an overall picture of policies that utilities have in place, the possibilities for how a utility may collaborate, and the constraints on what a utility is likely to be able to do to help the agency. The case examples provide a model for transit agencies and utilities on how to create a collaborative relationship, common practices for strong agency-utility collaboration, and the benefits of establishing a strong collaboration. The case examples can provide a guide and suggestions on how to form or develop a transit agency-utility relationship for BEB deployments, but each partnership will be somewhat unique given that no transit agency and no electric utility are exactly like others. Finally, this report is intended to be reasonably comprehensive regarding the utility landscape at the time of its publication. However, transit bus electrification is a rapidly evolving environ- ment, so this report should be taken as a snapshot in time.