Mayor Kevin Settembrino                                                                                             October 12. 2018
Ted Maloney
Tony Mercantante

SUBJECT: Strategy to compete for Volkswagen settlement grants for Middletown Jitneys and Trucks.

On or before January 31, 2018, Middletown submitted 3 projects, totaling $3.885 Million for consideration from the $72Million funds in the NJ portion of the Volkswagen Mitigation Trust.

NJ is revising its assessment criteria for selection of projects to be funded, and is now accepting additional projects.  The funds would be distributed in 3 phases.   The current draft describes a focus on replacements by zero emission vehicles and electric charging stations. See attached page 11 of “Draft Beneficiary Mitigation Plan for the VW Mitigation Trust”.

The 3 Middletown projects propose to replace diesel trucks and jitneys with CNG-powered vehicles.  If these projects are funded (now less likely), the award will be for up to 25% of Middletown’s cost.  However, if the projects were modified to replace diesel trucks and jitneys with electric vehicles, then the projects are more likely to be funded (as judged by the new selection criteria), and the award would fund up to 100% of the cost, including the “electric charging infrastructure costs” (assuming the “charging infrastructure” clause in the 2017 “Project Solicitation” is retained in the final version of the “Beneficiary Mitigation Plan for the Volkswagen Mitigation Trust”).

To increase probability that Middletown receives the grants, please consider resubmitting projects which describe a long-term view of electrifying Middletown’s jitneys and trucks in order to fully “green” Middletown’s fleet.  The current CNG plan could be short term.  Electric vehicle operational cost (& life cycle cost?) is currently less than traditional vehicle operational costs. Battery prices continue to fall.  Within 5 years, the powertrain of an electric car is expected to cost less than the powertrain of an internal combustion car.  We might expect similar characteristics for electric trucks vs diesel/CNG trucks. Taxpayers are expecting you to sharpen your pencils and justify your long-term financial decisions.

 Following are novel ideas to make the Middletown projects more attractive to NJ DEP:

• The revised projects include high capacity charging stations employing high current Level 2 and DC Level 3 fast charge infrastructure located at strategic spots around Middletown.  These high capacity chargers could be used for both Middletown’s light and heavy-duty electric trucks and future fleet of electric cars for official use.

• Additionally, public access to at least a portion of these strategically-located chargers will help achieve New Jersey’s “commitment to wide-scale deployment of electric vehicles” (bottom of page 10 of “Beneficiary Mitigation Plan”).  Operational/maintenance cost of public charging stations could be offset by a 3rd party payment system.

• Current plug-in EVs include hybrid vehicles with 30 to 50-mile battery range which could use a quick level 2 boost charge (for instance, while shopping).  Increasing numbers of pure EVs will include high capacity batteries (200+ mile range), and require Level 3 fast charge for any meaningful quick charge. 

• Charging locations might include DPW property, the new municipal complex (plan and install electrical conduit and concrete pads for future use on Middletown-owned land), train station parking lot, Middletown Arts Center, bus parking (route 36), and ESPECIALLY spots within the proposed microgrid.   Even more novel for these project proposals: combine with Tony Mercantante’s solar parking canopy ideas.

Att: page 11 of    https://www.state.nj.us/dep/vw/BENEFICIARY MITIGATION PLAN.pdf
Oct 4, 2018 draft, comments due Nov 7, 2018*