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

1. 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

2. Agenda • California Zero Emission Vehicle (ZEV) Program • Statewide ZEV Incentive Program • Staff’s Draft Proposal for Future Program • Discussion • Schedule 2

3. 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 3

4. 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 4

5. ZIP Eligible Vehicles • New zero emission light-duty cars and trucks capable of operation on freeways 5

6. Qualified Grant Recipients • Individuals • Local government • State agencies • Nonprofit organizations • Private businesses • Public agencies, including Federal agencies (effective 1/1/02) 6

7. 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 DMV 7

8. 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 8

9. 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 9

10. 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) 10

11. 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

12. 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

13. 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 13

14. City/Urban ZEV • Description • Applicable FMVSS • Automaker has placed restrictions on operation on freeways • Draft proposed grant amount: $4,000 14

15. 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

16. 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 16

17. 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 17 *models with NHTSA waivers considered on a case-by-case basis

18. Draft Proposal for Grant Amounts • Not to exceed 50% of the sales price • Considering cap on number of grants awarded for certain vehicle categories 18

19. ZIP II Fleet Component • Public workshop on January 10, 2002 • Tentative agenda items • Proposed goals • Solicitation and award process • Administration • Proposed implementation schedule 19

20. Vehicle Categories Grant Amounts Program Effective Date Administration Discussion 20

21. 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 Implementation Schedule 21

22. 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 22

23. 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 Sweigert 916-322-6923 gsweiger@arb.ca.gov 23

24. Staff Draft Proposal for Expanding the Statewide Zero Emission Vehicle (ZEV) Incentive Program CALIFORNIA AIR RESOURCES BOARD Public Workshop, December 19, 2001 Sacramento, California