Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program

CALIFORNIA AIR RESOURCES BOARD

Public Workshop, December 19, 2001

Sacramento, California

1

Agenda

• California Zero Emission Vehicle (ZEV) Program

• Statewide ZEV Incentive Program

• Staff’s Draft Proposal for Future Program

• Discussion

• Schedule2

California ZEV Program• Regulation adopted in 1990 and most

recently modified in 2001

– Small demo fleets in mid-to-late 1990s and some retail placements (MOA)

– 10% of new cars must have zero or near-zero emissions beginning in 2003

– Ramp up to maximum 16% in 2018

• Broad flexibility that encourages multiple vehicle types & technologies

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Statewide ZEV Incentive Program (ZIP)

• $18 million statewide ZEV grant program authorized by AB 2061 (Lowenthal)– option for local air agency implementation

• Maximum vehicle grant up to $9,000– 90% (incremental cost - $1,000)

– Up to $3,000 per year for 3 years

– Purchase or lease between October 2000 and December 2002

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ZIP Eligible Vehicles

• New zero emission light-duty cars and trucks capable of operation on freeways

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Qualified Grant Recipients

• Individuals

• Local government

• State agencies

• Nonprofit organizations

• Private businesses

• Public agencies, including Federal agencies (effective 1/1/02) 6

ZIP Grant Approval Process

• Consumer applies for grant after purchase or lease of new ZEV

– Option to request pre-approval of grant

– Option to assign grant to participating lessor to reduce monthly lease cost

• Three equal annual payments

– Possible tax consequences

• Vehicle must be registered with CA DMV7

Summary of ZIP Activities

• 300 grants approved to date with $1.4 million committed

• ARB staff implements ZIP statewide

– South Coast AQMD in future

• Remaining funds must be committed by December 2002

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Future Program - ZIP II

• $20 million for ZEV incentives provided in FY2001-2002 Approved State Budget

• Additional ZEV types may be included

• Funds may be spent through June 2004

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Budget Act Language

• Consider neighborhood electric vehicles (NEVs)

• $10 million for ZEV grants

– up to $5,000

– ARB to establish criteria (for eligible vehicles and grant amounts)

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Budget Act Language (cont.)

• $10 million for fleet vehicle grants, in areas with poorest air quality

– Up to $11,000

– Award using a competitive process

– Preference to vehicles operated primarily in communities disproportionately impacted by poor air quality 11

ARB Staff’s Draft Proposal for Future Program (ZIP II)

• Program Effective Date – To be determined

• Vehicle Categories

– Full-function ZEV

– City or Urban ZEV

– Zero emission motorcycle (ZEM)

– Neighborhood EV (NEV) 12

Full-Function ZEV

• Description

– Applicable Federal Motor Vehicle Safety Standards (FMVSS)

– Capable of operation on freeways

– Passenger cars, light-duty trucks and specialty/fleet versions

• Draft proposed grant amount: $5,000

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City/Urban ZEV

• Description

– Applicable FMVSS

– Automaker has placed restrictions on operation on freeways

• Draft proposed grant amount: $4,000

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Zero Emission Motorcycle (ZEM)

• Description

– Three-wheeled and fully enclosed zero emission vehicles

• Draft proposed grant amount for ZEMs capable of operation on freeways: $3,000

• Draft proposed grant amount for ZEMs with restrictions on operation on freeways: $1,000 15

Neighborhood EV

• Description

– Applicable FMVSS and California Vehicle Code (C.V.C.) requirements for low speed vehicles

– Top speed limited to 25 mph

– May not be operated on streets with posted maximum speed greater than 35 mph

• Draft proposal is not to provide a grant but staff is open to alternatives

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Draft Proposal for Minimum Vehicle Requirements

• New vehicle

• Certified by ARB

• Meet applicable FMVSS criteria*

• Meet applicable C.V.C. requirements

• Be registered with California DMV

• Minimum 3 year vehicle and battery warranty, or duration of lease, if longer

*models with NHTSA waivers considered on a case-by-case basis17

Draft Proposal for Grant Amounts

• Not to exceed 50% of the sales price

• Considering cap on number of grants awarded for certain vehicle categories

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ZIP II Fleet Component

• Public workshop on January 10, 2002

• Tentative agenda items

– Proposed goals

– Solicitation and award process

– Administration

– Proposed implementation schedule 19

Discussion

• Vehicle Categories

• Grant Amounts

• Program Effective Date

• Administration

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Implementation Schedule

• Public Workshops

– December 19, 2001, Sacramento

– January 10, 2002, Los Angeles area

• ARB Public Meeting, February 21, 2002

– Consider Staff’s Proposed Guidelines

• Accept grant applications beginning March 2002

• Fleet Solicitation - TBA 21

ZEV and ZIP Information

• ZEV availability and incentives info

– www.zevinfo.com

– 1-800-END-SMOG (general)

– 1-866-808-0189 (Statewide ZIP program)

– www.arb.ca.gov/msprog/zevprog/zip/zip.htm

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ARB Contact Information

• Current ZIP, ZIP II general program and vehicle categories and grants

Judy Yee (916) 327-5610 or

(866) 808-0189 (toll free) jyee@arb.ca.gov

• Fleet Vehicles and Competitive Bid Process

Gayle Sweigert916-322-6923

gsweiger@arb.ca.gov 23

Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program

CALIFORNIA AIR RESOURCES BOARD

Public Workshop, December 19, 2001

Sacramento, California