Mayor Emanuel Announces New Ordinance to Encourage City Contractors to Purchase Alternative Fuel and Electric Vehicles
Mayor Emanuel today announced an innovative ordinance that will encourage private companies to adopt electric vehicles by giving them a .5 percent bid incentive on city contracts.
Earlier this month the city of Chicago put 50 new electric waste disposal trucks into circulation in an attempt to reduce fuel costs and pollution levels within the city.
“This is another step forward to making electric and alternative fuel vehicles the standard in Chicago,” said Mayor Emanuel. “I am focused on creating an environment in which energy efficient vehicles are used throughout the city and where the adoption of these vehicles is a sound business decision for Chicago’s companies.”
The bid incentive works by allowing companies to gain a .5 percent bid incentive if they have more than 50 percent of their fleet as alternative fuel and electric vehicles, and their fleet spends more than 50 percent of its time in the Chicago area. A bid incentive means that at the time of bid, a vendor may elect to demonstrate that it has met the requirements set forth in the ordinance. A satisfactory showing will give the bidder a half percent advantage over bidders who elect not to meet the requirements.
“The City of Chicago is focused on a level playing field and building the overall business community, while creating economic opportunity and jobs. That’s exactly what this does,” said Director of Procurement Jamie Rhee. “Incentives of this sort help companies make strong choices that improve not just their own bottom line, but also the overall business fabric of the City.”
Since taking office, Mayor Emanuel has been focused on increasing opportunity for small, minority- and woman-owned businesses including recently announcing an online M/WBE forum created to foster networking and information sharing between the city’s diverse vendors. Additionally, the Mayor created the Mentor protégé program designed to build capacity and promote growth by providing up to a 5% credit for contractors who agree to take on a mentor/protégé relationship. This program gives small business owners the guidance needed to become competitive and self-sufficient. Further, the Diversity Credit Program encourages private sector contractors to work with minority- and woman-owned businesses by earning future bid credits and the Small Business Program allows only small business to bid on construction projects valued under 3 million.
This is the third major announcement related to electronic vehicles that Mayor Emanuel has made this week. On Tuesday, he announced a $15 million incentive program to encourage conversion of fleets to electric vehicles by providing vouchers at the point of sale. That release is located here.
On Wednesday, Mayor Emanuel was joined by Smith Electric Vehicles to announce that Smith will be opening a factory in Chicago, creating 200 jobs over the next three years and producing electric vehicles right here in Chicago. That release is located here.
The .5 percent bid preference for the alternative fuel vehicle incentive can be used in combination with other bid incentives, such as the local business preference. The City offers a 2 percent local business preference for Chicago businesses and an incentive for goods manufactured in Chicago, as well as an incentive for utilization of minority and female apprentices, journeyman workers and laborers.
The alternative fuel vehicle incentive is subject to City Council approval and will be introduced to City Council on December 12, 2012.