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sr-112409-1cCity Council Meeting: November 24, 2009 Agenda Item: ~ " To: Mayor and City Council From: Joan L. Akins, Director, Community Maintenance Department Subject: Adoption of a Resolution Supporting State Regulations to Establish a Medium-Speed Vehicle (MSV) Classification Recommended Action Staff recommends the City Council adopt a Resolution of Support requesting that the State establish aMedium-Speed Vehicle (MSV) classification for vehicles limited to a maximum speed of 35 mph and limited to operate on roads with a 35 mph maximum speed limit. Executive Summary Creation of a MSV classification is needed to allow the safe and legal use of vehicles limited to a maximum speed of 35 mph. MSVs are primarily zero-emission, battery powered vehicles that are available today. The manufacture, sale and use of MSVs will displace oil, create demand and accelerate the automotive industry's move toward zero- emission vehicles. Background Typical passenger cars must meet all Federal Motor Vehicle Safety Standards (FMVSS) established by the National Highway Transportation Safety Administration (NHTSA) for full-speed vehicles. In 1998 NHTSA established a safety standard for Low-Speed Vehicles (ESNs) which are limited to a top speed of 25 mph on roads posted for 35 mph or less. MSVs do not fall under either of these regulations because they do not meet all FMVSS, but have more safety standards than LSVs. Kentucky, Minnesota, Montana, Oklahoma, Oregon, Tennessee, Texas and Washington have passed MSV .legislation contrary to Federal regulations and other states are considering legislation. 1 Fully compliant FMVSS vehicles have requirements such as advanced air bags and electronic stability control that adds approximately $10M to the development cost of a vehicle. This is prohibitive for all but the few largest, manufacturers and greatly limits competition to bring alternative fuels technology advancements to market. Manufacturers and other proponents of MSVs believe that some FMVSS requirements have little or no advantage at 35 mph or less, but have been unsuccessful in convincing NHTSA to establish safety standards for vehicles limited to 35 mph. Proponents want the opportunity to work with the State to establish legal standards for MSVs in limited applications. Discussion MSVs with their limited range and speed are a perfect fit for existing EV technology. The biggest obstacle facing full-speed Battery Electric Vehicles (BEVs) is the affordability of batteries to accommodate high speeds for long distances. Large manufacturers are beginning to demonstrate vehicles in limited applications, but large numbers of full-speed BEVs are several years away and could be much longer if fuel prices remain low. MSVs have much smaller energy requirements than long-range, full-speed vehicles. This allows smaller, less expensive systems to be used in testing and developing experimental or expensive battery, fuel cell, compressed air and other zero emission technologies for vehicles. The reduced cost enables participation and problem solving by a larger group of inventors, entrepreneurs and small businesses to work on resolving transportation problems. 2 MSVs are ideal for congested areas, commuter vehicles and "last mile" use. They should reduce the incidents of accident and injuries attributed to excessive speed and therefore, increase safety in urban and pedestrian environments. Reducing the use of petroleum fuel by using zero emission vehicles improves health, the environment and the climate. Financial Impacts & Budget Actions There are no immediate financial impacts. Future impacts could include development of electric vehicle charging infrastructure and increased electrical use at City owned EV chargers. Zero emission vehicles (ZEVs) displaying the ZEV decal are not required to pay at parking meters, which could result in a loss of some parking revenue. Prepared by: Rick Sikes, Superintendent, Fleet Management Approved: Forwarded to Council: Joa L. Akins '" P/C~fmont EN Direc or, Community Maintenance ~ Manager Department 3 Reference Resolution No. 10441 (CCS).