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Smart Incentives to Move the Market:
States-Regions Leading
• California invested >$50M in
voucher program for hybrid
and electric trucks; has a
parallel program for NGVs
• New York $19M voucher
program starts July for
hybrid, electric and NG trucks
• Chicago launching $11.295M
electric truck voucher;
$1.425M NG/Elec
infrastructure; $1.275M
Green Taxi (NG)
www.californiahvip.org
Incentives Reauthorization Update
THE LEGISLATION
• CALSTART, ALAC, and CAPCOA co-sponsoring legislation to extend
AB 118 and Carl Moyer program
• Two bills – SB 11 and AB 8 – would extend programs through 2023
• 100+ business and clean air orgs supporting
• More than $2 billion at stake
Assembly
Member
Perea
Senator Pavley
Primary Authors of Incentives
Reauthorization Bills
UPDATE
» Both bills have bipartisan support
» SB 11 passed out of Senate on 5/29;
now must go through Assembly
» AB 8 Assembly vote not yet scheduled;
if passed, will then move on to Senate
Other California Efforts
• Secure funding for clean vehicle incentives
through California’s GHG cap and trade program
– Goal is $50 million this year; issue is part of ongoing
budget deliberations
• Extend HOV lane access for clean vehicles
– SB 286 and AB 266 would extend HOV access at least
3 years; both passed out of first houses
• Reduce taxes and fees on clean vehicles
– AB 220 reduces sales tax and AB 1077 reduces sales
tax and VLF; committee hearings next week – need
support now
California – Hybrid and Zero Emission
Trucks
» > $50 million in incentives to date
» Vouchers for 50% of incremental cost
» Base vouchers from $8-45k
» 1,247 vouchers issues through 2012
» Major fleets focusing on CA for clean truck
deployment because of funding
Real success requires broader coverage – CA
market is getting “saturated”
California HVIP Zero-Emission
Voucher Amounts
GVWR (lbs) Voucher
5,001 – 8,500 $12,000
8,501 – 10,000 $18,000
10,001 – 14,000 $30,000
14,001 – 19,500 $35,000
19,501 – 26,000 $40,000
> 26,000 $45,000
California HVIP Hybrid
Voucher Amounts
GVWR (lbs) Voucher
6,001 – 8,500 (plug-in hybrids only) $8,000
8,501 – 10,000 (plug-in hybrids only) $10,000
10,001 – 19,500 $15,000
19,501 – 33,000 $20,000
33,001 – 38,000 $25,000
> 38,000 $30,000
California HVIP Voucher Adders
The first three vouchers received by a fleet per
funding year are eligible for the following
additional funding amount:
$2,000/vehicle <8,501 lbs
$5,000/vehicle 8,501 - 10,000 lbs
$10,000/vehicle >10,000 lbs
Current Totals: ~$350k remaining
New York State - Electric Vehicle
» Class 3-8 electric trucks
» $9 million in incentives
» Vouchers for 80% of incremental cost
up to $60,000 per eligible vehicle
» For 30 non-attainment counties
» CMAQ funding from NY State DOT
» For vehicles ordered after July 1, 2012
» Class 3-8 CNG, hybrid, electric trucks
» $6 million in incentives
» Vouchers for 80% of incremental cost
up to $40,000 per eligible vehicle
» Private fleets only
» Must domicile in NYC
» CMAQ funding from NY City DOT
» Will launch in 2013
New York City - Alt Fuel Vehicle
» Diesel emission controls for Class 3-8
» $4 million in incentives
» Vouchers cover 80% of cost
» Private fleets only
» Must domicile in NYC
» CMAQ funding from NY City DOT
» Will launch in 2013
New York City - Diesel Retrofit
Coming Soon…
Metro Chicago
» Electric trucks
» Launches spring 2013
» Voucher amount based on battery size
» Targets 60% of incremental cost
» Private and public fleets
» $15 million in CMAQ funds
» Targets 250 vouchers
Why Vouchers over Tax Credits and
Other Options?
• Change economics at point of purchase,
effectively reducing purchase price
• All fleets can take advantage
– Includes tax-exempt fleets
– Directly impacts budget for fleet manager
• Simple and easy to understand!
• Industry surveys and studies confirm vouchers
are best purchase incentive option
The New Model and Opportunity
• CMAQ Funds can be used in a voucher
program – makes it easier to start (do not
need own funds)
• NY, Chicago and Oregon using this approach
• They have now set the “template”
• Other regions (cities/states in some cases)
can/should be encouraged to make use of this
structure
Making the Case
• New CALSTART white
paper outlines value of
vouchers
• Also provides case study of
first voucher state; new
voucher regions starting;
identifies possible federal
funds
• Outlines framework of
national incentive network
that could be made up of
regional voucher programs
Some Potential Areas for Expanded
Incentives?
= New Potential
Voucher Regions
Proposed CALSTART Effort
• Focus on 5-7 key states in absence of fed leadership.
Help them understand/adopt new voucher model
• Push for fuel/technology neutral approach to drive
emissions reductions and efficiency
• Practical, solution-oriented approach scales existing
programs and leverages existing funds
• No federal legislation needed – can tap existing funds if
we train the states
• Work with coalition of industry

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CALSTART Presentation - VanAmburg (Incentives)

  • 1. Smart Incentives to Move the Market: States-Regions Leading • California invested >$50M in voucher program for hybrid and electric trucks; has a parallel program for NGVs • New York $19M voucher program starts July for hybrid, electric and NG trucks • Chicago launching $11.295M electric truck voucher; $1.425M NG/Elec infrastructure; $1.275M Green Taxi (NG) www.californiahvip.org
  • 2. Incentives Reauthorization Update THE LEGISLATION • CALSTART, ALAC, and CAPCOA co-sponsoring legislation to extend AB 118 and Carl Moyer program • Two bills – SB 11 and AB 8 – would extend programs through 2023 • 100+ business and clean air orgs supporting • More than $2 billion at stake Assembly Member Perea Senator Pavley Primary Authors of Incentives Reauthorization Bills UPDATE » Both bills have bipartisan support » SB 11 passed out of Senate on 5/29; now must go through Assembly » AB 8 Assembly vote not yet scheduled; if passed, will then move on to Senate
  • 3. Other California Efforts • Secure funding for clean vehicle incentives through California’s GHG cap and trade program – Goal is $50 million this year; issue is part of ongoing budget deliberations • Extend HOV lane access for clean vehicles – SB 286 and AB 266 would extend HOV access at least 3 years; both passed out of first houses • Reduce taxes and fees on clean vehicles – AB 220 reduces sales tax and AB 1077 reduces sales tax and VLF; committee hearings next week – need support now
  • 4. California – Hybrid and Zero Emission Trucks » > $50 million in incentives to date » Vouchers for 50% of incremental cost » Base vouchers from $8-45k » 1,247 vouchers issues through 2012 » Major fleets focusing on CA for clean truck deployment because of funding Real success requires broader coverage – CA market is getting “saturated”
  • 5. California HVIP Zero-Emission Voucher Amounts GVWR (lbs) Voucher 5,001 – 8,500 $12,000 8,501 – 10,000 $18,000 10,001 – 14,000 $30,000 14,001 – 19,500 $35,000 19,501 – 26,000 $40,000 > 26,000 $45,000
  • 6. California HVIP Hybrid Voucher Amounts GVWR (lbs) Voucher 6,001 – 8,500 (plug-in hybrids only) $8,000 8,501 – 10,000 (plug-in hybrids only) $10,000 10,001 – 19,500 $15,000 19,501 – 33,000 $20,000 33,001 – 38,000 $25,000 > 38,000 $30,000
  • 7. California HVIP Voucher Adders The first three vouchers received by a fleet per funding year are eligible for the following additional funding amount: $2,000/vehicle <8,501 lbs $5,000/vehicle 8,501 - 10,000 lbs $10,000/vehicle >10,000 lbs
  • 9. New York State - Electric Vehicle » Class 3-8 electric trucks » $9 million in incentives » Vouchers for 80% of incremental cost up to $60,000 per eligible vehicle » For 30 non-attainment counties » CMAQ funding from NY State DOT » For vehicles ordered after July 1, 2012
  • 10. » Class 3-8 CNG, hybrid, electric trucks » $6 million in incentives » Vouchers for 80% of incremental cost up to $40,000 per eligible vehicle » Private fleets only » Must domicile in NYC » CMAQ funding from NY City DOT » Will launch in 2013 New York City - Alt Fuel Vehicle
  • 11. » Diesel emission controls for Class 3-8 » $4 million in incentives » Vouchers cover 80% of cost » Private fleets only » Must domicile in NYC » CMAQ funding from NY City DOT » Will launch in 2013 New York City - Diesel Retrofit
  • 12. Coming Soon… Metro Chicago » Electric trucks » Launches spring 2013 » Voucher amount based on battery size » Targets 60% of incremental cost » Private and public fleets » $15 million in CMAQ funds » Targets 250 vouchers
  • 13. Why Vouchers over Tax Credits and Other Options? • Change economics at point of purchase, effectively reducing purchase price • All fleets can take advantage – Includes tax-exempt fleets – Directly impacts budget for fleet manager • Simple and easy to understand! • Industry surveys and studies confirm vouchers are best purchase incentive option
  • 14. The New Model and Opportunity • CMAQ Funds can be used in a voucher program – makes it easier to start (do not need own funds) • NY, Chicago and Oregon using this approach • They have now set the “template” • Other regions (cities/states in some cases) can/should be encouraged to make use of this structure
  • 15. Making the Case • New CALSTART white paper outlines value of vouchers • Also provides case study of first voucher state; new voucher regions starting; identifies possible federal funds • Outlines framework of national incentive network that could be made up of regional voucher programs
  • 16. Some Potential Areas for Expanded Incentives? = New Potential Voucher Regions
  • 17. Proposed CALSTART Effort • Focus on 5-7 key states in absence of fed leadership. Help them understand/adopt new voucher model • Push for fuel/technology neutral approach to drive emissions reductions and efficiency • Practical, solution-oriented approach scales existing programs and leverages existing funds • No federal legislation needed – can tap existing funds if we train the states • Work with coalition of industry