STEP on the Bus - Session 4.2 - OLEV Low Emission Bus Scheme_Gloria Esposito

Overview of the OLEV New Low Emission Bus Scheme

Gloria EspositoHead of Projects

STEP on the Bus Event - Edinburgh28th May 2015

Slide 1

Slide 2

LowCVP’s Bus Activities

Supporting and influencing DfT policy regarding Low Carbon Emission Buses: Created Low Carbon Emission Bus definition:

A low carbon emission bus achieves >30% savings in WTW GHG emissions compared to a standard Euro 3 diesel bus of the same passenger capacity.

Developed the LCEB accreditation and certification scheme to certify LCEBs which are eligible for capital and running cost incentives

Support DfT introduction of Green Bus Fund – Provided £100m over 5years to support the purchase of LCEB

Introduction of Bus Subsidy Operator Grant LCEB incentive – 6p/km

Research examining barriers to purchasing the low emission bus market and developing policy recommendations to expand the market including a new style grant mechanism and accreditation procedure for LCEBs (adopted by OLEV and DfT)

Supporting OLEV’s Low Emission Bus (LEB) Scheme - developed LEB grant structure and LEB accreditation procedure plus helping to provide guidance to bidders.

Slide 3

Low Carbon Emission Bus Market - England

Hybrid Micro-Hybrids Biomethane Electric 0

200

400

600

800

1000

1200

1400

1600

1800

1579

193 113 76

1975 low carbon emission buses in service with 80% supported by

Green Bus Fund

Slide 4

New Low Emission Bus (LEB) Scheme Overview

Office of Low Emission Vehicles introduced £30m Low Emission Bus grant (LEB) to support the purchase of low emission buses across England and Wales in 2015 - 2020. (replaces the Green Bus Fund).

The new Low Emission Bus Scheme(LEB) has four primary objectives: Increase the uptake of low and ultra-low emission buses (England and Wales). Support the improvement in local air quality Reduce the impact of road transport greenhouse gas emissions. Attract investment in UK automotive manufacturing sector

LEB grant supports purchase Low Emission Buses and Infrastructure, over three years (2016-2019)

Competitive bidding process for local authorities and bus operators, No maximum allocation however bids over £5m should also give an option for lower amounts.

Slide 5

Low Emission Bus Scheme Overview – Cont.

Timetable for submission and assessment of applications : Deadline for applications: 31st October 2015; Announcement of the winners: January 2016.

OLEV published guidance for bidders and a LEB scheme grant calculator

https://www.gov.uk/government/publications/low-emission-bus-scheme

LowCVP website features a Low Emission Bus microsite with information on the LEB Grant and LEB Accreditation and Certification Procedure.

http://www.lowcvp.org.uk/initiatives/leb/Home.htm

Slide 6

What is a Low Emission Bus?A Low Emission Bus (LEB) is defined by the government as “producing 15% less Well-to-Wheel (WTW) GHG emissions compared with an equivalent Euro 5 diesel bus with the same passenger capacity and must meet the Euro 6 emission standard or proven equivalent.

Quick reminder of WTW GHG emissions:

Well to Tank + Tank to Wheel = Well-to-Wheel GHG emissions (gCO2e/km)

GHGs of interest are Carbon Dioxide (CO2), Methane(CH4) and Nitrous Oxide (N2O)

• Example of potential technologies for LEBs: hybrid, plug-in hybrid, flywheel hybrid, battery electric, biomethane, hydrogen fuel cell if H2 produced via renewable energy sources

Emissions associated with fuel production

Emissions associated with vehicle operation

Slide 7

LEB Grant Outline (Low Emission Bus & Infrastructure)Low Emission Bus Element Grant sizes are based on the capital cost (i.e. purchasing price) difference between an LEB and its

equivalent diesel bus. Two elements (climate change and air quality).

a) Base grant - sliding scale based on WTW GHG emissions saved by a low emission bus £15,000 LEB flat grant + £175/gram WTW carbon emissions saved/km.

o Capped at 75% of the LEB/diesel bus equivalent capital cost difference.

b) Top-up grant - measured in terms of ‘zero emission’ (ZE) capable kilometres £5,000 ZE capable flat grant + £1,000 per ZE km.

o Capped at £30,000.

Total grant eligibility – the maximum grant size that can be bid for: Base grant + Top-up grant

o Capped at 90% of the LEB/diesel bus equivalent capital cost difference.

The LEB grant calculator must be used to calculate grant required.

Slide 8

LEB Grant Outline (Low Emission Bus & Infrastructure)Infrastructure Element Covers biomethane,hydrogen refuelling and EV charging infrastructure. The eligible expenditure

includes:

Cost of charging unit or refueling station Electrical or other power components Site surveys Civil engineering work Labour costs (for installation) Hardware costs Capital costs of developing associated software systems

OLEV will not contribute more than75% of the capital expenditure incurred as a result of its purchase and installation.

Note – Low Emission Bus and Infrastructure Grant aims to achieve a three to five year payback with regarding to purchasing low emission buses.

Slide 9

LEB Accreditation Procedure To qualify as a Low Emission Bus and therefore be eligible for the Low Emission Bus Scheme

funding, the vehicle's manufacturer must certify a bus with LowCVP/DfT.

LEB accreditation - GHG and AQ emissions are measured against a whole vehicle emissions test in accordance with a new LowCVP UK Bus cycle and set of test procedures for different technologies.

Vehicle testing provides data required for WTW GHG emissions savings, AQ emissions and calculation of ‘zero’ emission capability.

Slide 10

The LEB CertificateCertificate presents information required to determine level of grant funding (& entry into LEB grant calculator) Manufacturer certify engine emission meets Euro VI.

WTW GHG emission savings - must be 15% or more.

Zero Emission range capability

Approved Test facility

Customer:

Customer Address:

Test Purpose: LEB Certification

Vehicle Manufacturer: Buses R uS Unladen weight (kg) 12000.0

Vehicle Type: Plug in Hybrid Flywheel Gross Weight (kg) 18000.0

Engine: Tdi 334 Euro VI Passenger Capacity 89 OK

Transmission: Auto Euro VI certificate Y/N

Fuel Type: Fuel Provider:

Well-to Tank Factor: (g CO2e/MJ) WTT evidence

Test Phase HC (g/km) CO (g/km) NOx (g/km) PM (g/km) CO2 (g/km) CH4 (g/km)‡ N2O (g/km)‡ Fuel

Consumption (l/100 km)

Rural / LUB 0.00 0.08 0.08 N/A 893.36 0.00 0.030 30.000

Inner London 0.00 0.02 0.02 N/A 856.59 0.00 0.010 45.000Outer London 0.00 0.01 0.01 N/A 877.55 0.00 0.005 50.000

MLTB Average 0.00 0.01 0.02 875.22 0.00 0.012 47.500LUB Average 0.00 0.01 0.01 N/A 867.07 0.00 0.010 41.667

Test Phase

Rural / LUB Inner London Outer London

MLTB

LUB Total Average

Fuel/energy used over

Total Fuel Energy

(litres/km) (MJ/km)

Rural 2.89 36.00Inner London 2.96 38.00Outer London 2.70 35.00

MLTB 3.01 41.00LUB Total Average 2.89 36.00

Data Generated by: Data Approved by:On behalf of Test facility

**********

***** Data to input to LEB grant fund calculator

Certificate approved by: Certificate Approved by:On behalf of Bus manufacturer On behalf of LowCVP/DfT

*** WTW - Well-to Wheel

CO2 (g/km)

1044.12

875.22

867.07

Calculated TTW** GHG Emissions

14.20 60.34

* WTT - Wheel-to-Tank

0.00 3.58 878.80

14.20 26.50

Test PhaseWTT* Fuel GHG

Equivalence Factor

** TTW - Tank-to-Wheel

Low Emission Bus Scheme Certificate

Emissions and Energy consumption results from approved test facility - Average 3 tests

14.2

Total Tank-to-Wheel GHG CO 2 equivalent

CH4 (g/km x 25)‡ N2O (g/km x 298)‡ TTW GHG (CO2e (g/km)

Yes - Manufacturer certified

893.36

0.00 1.49 879.04

0.00 8.94 902.30856.59877.55

0.00 2.98 870.05

Well-to-Wheel GHG CO 2 equivalent

0.00 2.98 859.57

Calculated WTW*** GHG Emissions

(g CO2e/MJ) (g CO2e/MJ) (g CO2e/MJ)14.20 57.18 984.70

1011.9

Euro V Average Diesel Equivalent (g CO2e / km) 1200.4

977.76

14.20 65.24 1040.92

14.20 52.31 1011.88

Approved as Low Emission Bus? (15% saving or more)

† compared with Euro 5

UK Diesel Fuels R us

DEFRA 2014 factors

WTW GHG saving† (g CO2e / km)

Low Emission Bus Certificate SummaryGHG Well-to-Wheel (g CO2e / km)

Zero Emission operating range (km) 0.0188.5

16%

Yes/No

Total measured energy consumed on vehicle (kWr)

Electric energy consumption and charge efficiency

Measured grid energy during charging kWr

Distance covered km

Charging efficiency

% WTW GHG saving† (g CO2e / km)

Slide 11

Information Required for Application for Electric Bus

LEB CertificateWTW GHG emission saving, energy consumption and ZE range

InfrastructureCharger efficiency Grid Electricity

WTT factor from DEFRA or JRC

Electricity GeneratorEnergy provider to supply evidence of WTT if renewable or use LowCVP default WTT factor (average UK grid)

Bus Manufacturer Infrastructure Provider Energy Provider

Slide 12

Indicative Examples – within calculator

12

Slide 13

How will bids be assessed?

1. Ambition (30%)Bids will be treated as stronger or looked upon more favourably, where they: demonstrate the bidder plans to buy more LEBs after the LEBS grant period is over; offer the greatest evidence of transformation of the bidder’s fleet to LEB; strike a balance between innovation and being tried and tested.

2. Deliverability (10%)Bids will be treated as stronger or looked upon more favourably, where they: provide evidence from third parties on deliverability; offer a larger local contribution; provide evidence of third party financial contributions; secure a commitment by manufacturer to reduce costs; demonstrate reduced need for Government subsidy; provide evidence of bidders taking out and funding warranties

Slide 14

How will bids be assessed?

3. Air Quality (25%)Bids will be treated as stronger or looked upon more favourably, where they:

demonstrate improvement to air quality have buses operating regularly in areas with poorest air quality demonstrate greater degree of zero emission running in these areas.

4. Value for Money (35%) Maximise the number of low and ultra low emission buses on the road with the available

grant funds. Ensure benefits of these buses are maximised - air quality and carbon savings improvements

Slide 15

Components of Value for Money assessment1. Amount of grant sought – both for LEBs and infrastructure

Assessed with respect to the bidder’s total grant eligibility- Strong bids will seek grant sizes that constitute a smaller proportion of total grant eligibility.

2. Infrastructure Why the type of infrastructure in question has been chosen.

- Strong bids will effectively justify the infrastructure type chosen in the bid.

How the infrastructure will facilitate the uptake of additional new LEBs both during this grant scheme funding window and beyond.

- Strong bids will enable the purchase of more LEBs and facilitate a faster uptake of LEBs both within the funding window and beyond.

How the infrastructure will maximise air quality/carbon savings improvements - Strong bids will clearly demonstrate infrastructure’s role in maximising benefits. E.g. considering the positioning of electric charging points to maximise operational ZE kilometres undertaken by an electric bus.

Slide 16

Components of Value for Money assessment cont. 3. Carbon savings and air quality

Assessed with respect to overall carbon savings and improvements in air quality- Strong bids will demonstrate evidence of high carbon savings and air quality improvements compared to the counterfactual scenario.- Requires bidders to calculate per annum carbon savings and air quality improvement

4. Replacement of older buses Bidders should state if LEBs purchased under the fund will replace existing buses.

- If buses are being replaced, strong bids will involve LEBs replacing the highest carbon emitting buses in the fleet.

5. Fuel source and sustainability Bids with renewable fuel sources will automatically attract higher total grant eligibility as

their LEBs will have a higher WTW gram carbon emissions saved/km figure

Slide 17

Summary

The higher upfront purchase cost of low emission buses and high cost of infrastructure (electric and biomethane buses) are two key barriers precluding the greater take up low emission buses.

LowCVP have developed the LEB scheme for OLEV, to address the market barriers raised in our report and is playing a key role in supporting the roll out of the OLEV Low Emission Bus Scheme.

The scheme is technology neutral and address both air quality and climate change related emissions, providing transparent data for operators and encouraging ambition in WTW savings

The LEB could be easily adopted in Scotland given existing LCEB grant scheme and accreditation procedure. Sliding scale WTW GHG emission saving based grant mechanism would also be suitable for any revised BSOG incentive.

Gloria [email protected]

Thank you for your attention.