Putting Public Dollars to Work: Voucher Incentive Programs for Cleaner Trucks and Buses

Northeast Diesel Collaborative Wednesday, October 17, 2018

Agenda

• CALSTART Overview

• Basics of a Voucher Incentive Program

• VIPs in Practice: CA, NY, Chicago

• Funding Sources & Design Elements

• Case Studies

• Group Discussion and Questions

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Connecting Technologies and Applications

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What is a Voucher Incentive Program (VIP)?

• Mechanism to distribute clean vehicle

funds

• Reduces upfront costs to fleets

• Provides immediate reimbursement

• Brings automakers into new markets

• Accelerates cleaner deployment of

medium- and heavy-duty vehicles

• Can be supported from many funding

sources

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Why a VIP? Faster, Easier Fleet Adoption

• Provides equitable access to clean vehicles

• Point-of-purchase incentive gets funds to fleet operators quickly and with certainty

• Directs funds to “shovel-ready” projects • Adaptability for new vehicle technologies, fleets

users, vendors, and manufacturers

• Dealer network reduces inefficiencies and creates familiarity with process

• Builds a robust, regional clean vehicle economy

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Why a VIP? More Flexible Program Design

• The voucher mechanism can be tailored to:

– Support various technologies/fuels/vehicle classes

– Conform to requirements of funding source(s)

– Set funding caps by category

– Emphasize environmental justice

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How Does a VIP Work?

• Manufacturer or authorized dealer applies to list vehicles for voucher eligibility and website listing

• Vendor selling approved vehicle applies to be approved voucher recipient

• Fleet purchases an eligible vehicle from an eligible vendor with voucher amount subtracted

• Vendor works with Voucher Processing Center to process voucher request

• Once vehicle is delivered and all documentation is submitted, vendor is reimbursed

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Where are There VIPs in Place?

• California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)

• New York Truck Voucher Incentive Program (NYT-VIP)

• Drive Clean Chicago

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California

California Hybrid and Zero Emission Truck and Bus Incentive Project (HVIP)

Agency partners CARB

Funding amount $313 million to date

Funding source CA AB32 Cap-and-Trade Auction Revenues

Voucher types • Electric technologies (all-electric, hybrid-electric,

electric power take-off/utility)

• Low-NOx natural gas

Voucher amount 50-100% of incremental cost, up to $300,000

Vehicle classes 2-8 (GVWR >6,000)

Eligible fleets Private, public, non-profit

Availability First-come, first-served, $80 million available now

Distinguishing features Escalators for vehicles domiciled in disadvantaged

communities (CalEnviroScreen 3.0)

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California HVIP Incentives

conversions 6,001 – 8,500

8,501 – 10,000

$2,000

$6,000

10,001 – 19,500 $9,000

19,501 – 26,000 $12,000

26,001 - 33,000 $15,000

> 33,000 $18,000

Zero-emission

trucks and buses

Hybrid truck

Outside

GVWR (lbs) DAC In DAC

5,001 – 8,500

8,501 – 10,000

10,001 – 14,000

14,001 – 19,500

19,501 – 26,000

26,001 – 33,000

>33,000

Hydrogen Fuel Cell

Electric Truck

GVWR (lbs)

$20,000

$25,000

$50,000

$80,000

$90,000

$95,000

$150,000

$300,000

$25,000

$30,000

$55,000

$90,000

$100,000

$110,000

$165,000

$315,000

$45,000Low-NOx NG

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New York

New York Truck Voucher Incentive Program (NYT-VIP)

Agency partners NYSERDA, NYSDOT, NYCDOT

Funding amount $19 million

Funding source CMAQ

Voucher types • Alternative fuel vehicles (hybrid-electric,

natural gas) in NYC

• Diesel emission control devices in NYC

• All-electric vehicles statewide

Voucher amount 80% of incremental cost, up to $150,000

Vehicle classes 2b-8 (GVWR >8,500)

Geographic

restrictions

All-electric vehicles must be domiciled ≥70% of

time in one of 30 non-attainment counties

Eligible fleets Private, public, non-profit

Availability First-come, first-served

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NYT-VIP Incentives

• Voucher covers up to 80% of incremental cost, subject to cap

• Cap varies by technology/fuel and vehicle class

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Chicago

Drive Clean Chicago (DCC)

Agency partners Chicago DOT

Funding amount $12 million

Funding source CMAQ

Voucher types • Trucks: hybrid and all-electric

• Taxis: hybrid and all-electric

Voucher amount Truck: 80% of incremental cost, up to $150,000

Taxi: 80% of incremental cost, up to $10,000

Vehicle classes 2b-8 (GVWR >8,500) (truck program)

Eligible fleets Private, public, non-profit

Geographic restrictions Must operate in 6-county Chicago area

Availability First-come, first-served – no funds left

Distinguishing features Separate infrastructure incentive fund 13

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Technology # Vehicles % Amount

Hybrid electric 2,405

1,286

161

62% $ 62,644,776.12

33% $ 119,745,335.00

4% $ 3,898,000.00

Zero emission

ePTO

Total Electric 3,852 100% $ 186,288,111.12

Low-NOx Engines 1,044 100% $ 11,554,933.00

Technology # Fleets # Vehicles Voucher Funds

DPF 9 124 $2,452,304.80

EV 18 65 $5,673,093.00

CNG 4 71 $3,033,524.00

CNG Conversion 4 15 $334,272.00

Hybrid 22 83 $1,198,179.20

Hybrid Conversion 3 236 $1,830,776.00

Total 60 594 $14,522,149.00

Technology # Fleets # Vehicles Voucher Funds

EV Truck 18 49 $5,846,717.00

Hybrid Truck 37 239 $5,430,160.00

Total Truck 55 288 $11,276,877.00

EV Taxi 4 85 $855,440.00

CNG Taxi 1 2 $16,000.00

Total Taxi 5 87 $871,440.00

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Funding for VIPs

• Various sources can help states and localities fund clean vehicle

voucher programs

– Volkswagen Appendix D (Mitigation Trust) Settlement

– Federal: CMAQ, DERA

– State or Regional Cap-and-Trade (California AB32, RGGI)

– Other: Bond measures?

• Funding should be reliable, long-term, and have clearly stated

terms and conditions

The VIP tool is robust to the program requirements

of various funding sources and is stackable with other

incentive funds 15

Geographic Prioritization and

Environmental Justice

New York’s VIP has restricted vehicle deployment to counties in

or recently listed for non-

attainment to comply with CMAQ

program requirements

California’s VIP provides additional funding for vehicles domiciled in

areas designated as disadvantaged 16

Rubber Meets Road: DHL EVs

• 22 all-electric (BEV) cargo vans used in NYC

• NYT-VIP creates flexibility to right-size vehicles and

range for fleet needs

• Zenith Motors creates opportunities for electrification

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Rubber Meets Road: Verizon Hybrids

• 238 hybrid-electric vans replace gasoline-powered NYC fleet

• Produced by XL and funded by NYT-VIP

• Verizon chief sustainability officer: “With the addition of these hybrid vehicles, our

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fleet is as efficient as ever as we continue to use less fuel year after year.”

Rubber Meets Road: Manhattan Beer

CNG Delivery Trucks

• 150 CNG delivery trucks in regional fleet

• Volvo trucks with Cummins CNG engines

• Vehicles are spacious and reliable

• CNG models keep deliveries on schedule

• New technologies and fleet incentives have made CNG trucks favorites of drivers

• Green technology helps generate new business

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Discussion

We want to hear from you!

• For agencies: How is this program applicable to

your jurisdiction? Are there benefits or barriers

specific to your region?

• For fleets/manufacturers: How could additional

voucher programs advance business and/or

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sustainability objectives?

Get Involved in a VIP!

CALSTART points of contact:

• Dan Welch – dwelch@calstart.org, (718) 589-7726

• Ben Mandel – bmandel@calstart.org, (929) 295-6540

Voucher Incentive Program websites:

• CA HVIP: https://www.californiahvip.org/

• NYT-VIP: https://truck-vip.ny.gov/

• Drive Clean Chicago: http://www.drivecleanchicago.com/

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