Improving Local Air Quality - £35m City Scheme

Today

Background to OLEV and what we do

The £500m package announcement

The City Scheme

What is OLEV?

Incentives Infrastructure Supply ChainR&D Energy issues

Office for Low Emission Vehicles

Department of Energy & Climate Change

Policy objectives

4. Energy security

And the £££….

One of the longest, most comprehensive packages of support in

the world…

£400m OLEV support to 2015

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£500m for advanced propulsion centre

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£500m OLEV support to 2020

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£100m fiscal incentives to 2020

Plug in grants – the scheme

20% off an eligible van(up to £8000)20 eligible cars

7 eligible vans

<75g CO2

>70 miles range>60 mph top speed

25% off an eligible car (up to £5000)

Infrastructure grants

o 75% grant to install domestic chargepoints (up to £1,000). Available to all

o 75% grant to install chargepoints on the public sector estate (up to £7,500). Available to public sector organisations

8 “plugged in places” created to gain understanding of charging habits.

National infrastructure grants launched…

Tax incentiveso Vehicle Excise Duty – Exemption for <100g CO2 / km

o Fuel Duty – 0 for BEVs

o Company Car Tax – Exemption for 0g CO2 cars to 2015 – 5% for 1-74g CO2 cars to 2015 – 5% for 0-50g CO2 cars 2015 – 16 – 7% for 50-75g CO2 cars 2015 – 16

* Commitment to maintain a 2% differential for ULEVs out to 2020

o Enhanced Capital Allowance – write-down 100% of EV value in 1st

year to set against tax (even if the grant has been used)

o Van benefit charge (VBC) – £3000 charge payable to employees for private (as well as business) use till 2015

2015-2020 £500m

Car grant

2015-2020 £500m

Over £200m to keep grant at £5,000 (until 2017 or 50,000)

2015-2020 £500m

• Over £30m for other ULEV types including vans

• £100m for ULEV-specific R&D• £35m for a new city scheme competition• £32m for infrastructure including rapid

chargers• £4m for HGV gas refuelling infrastructure

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And…

£20m for ultra low emission taxis

£30m on low emission buses

We will make at least £20m available to local authorities who commit to supporting a step change in cleaning up the taxi fleets in their areas through the introduction of ULEV taxis.

We will commit at least £30m from 2015 to clean up bus fleets. This could put over 1,000 new low emission buses onto the roads.

We said: “We will make up to £35m available to the 2 to 4 cities that

commit to supporting a step change in ULEV adoption in their areas through measures like access to bus lanes, ULEV car club support, infrastructure for residents, parking policy and changing their own fleets. These cities will lead the way in increasing uptake through improving the offer to businesses and consumers and will become international exemplars.”

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The City Scheme

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We also said: That the scheme was restricted to cities and by concentrating the

funding on 2-4 individual cities we are most likely to realise the benefits on a visible scale.

Winning cities will need to show real ambition and innovation in their proposals. We will not prescribe measures but we would expect cities to consider things like: their own vehicle fleet procurement policies, infrastructure

provision, building codes and planning standards, car clubs, parking policy (especially for residents without off-street parking) and bus lane access

The City Scheme

THANK YOU

@olevgovuk