Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program
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Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program
CALIFORNIA AIR RESOURCES BOARD
Public Workshop, December 19, 2001
Sacramento, California
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Agenda
• California Zero Emission Vehicle (ZEV) Program
• Statewide ZEV Incentive Program
• Staff’s Draft Proposal for Future Program
• Discussion
• Schedule2
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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
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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
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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
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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
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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
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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
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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
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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
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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) [email protected]
• Fleet Vehicles and Competitive Bid Process
Gayle Sweigert916-322-6923
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Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program
CALIFORNIA AIR RESOURCES BOARD
Public Workshop, December 19, 2001
Sacramento, California