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Making the Business Case TODAY Steven Sokolsky Senior Project Manager [email protected]

Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

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Page 1: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Making the Business Case TODAY

Steven SokolskySenior Project [email protected]

Page 2: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

California Hybrid and Zero-Emission Truck & Bus Voucher Incentive Project

– Simplified incentive program that helps ALL fleets buy hybrid and battery-electric trucks and buses.

– Addresses biggest barrier: high incremental cost of vehicles in early market years.

– Program funded by the California Air Resources Board under its Air Quality Improvement Program (AQIP)*

– Everything is done easily and online: www.californiahvip.org

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech

Page 3: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• Vouchers are targeted to offset about 1/2 the incremental cost of hybrid and electric trucks and buses.

• Up to $85,000 available in funding PER VEHICLE

• Over $10 million available early 2014

• Up to 100 vehicles available per organization per year, but could expand to 200

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech

Page 4: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• No burden on fleets:

– The dealer does almost everything– No grants or proposal writing– No lengthy application forms– No long waits to be reimbursed– First come, first served.

• New, easy process just for public fleets!

• Everything is done easily and online.

• Helps fleets buy cleaner trucks and buses faster.

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech

Page 5: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• Fleet decides to place order for qualifying vehicle (using a registered dealer)

• When order is placed, dealer requests a voucher for each qualifying vehicle in fleet order– Help for public fleets: Public agency fleets may reserve

vouchers when they start their RFP/procurement process; a voucher is set aside for when order is placed

• When vehicles are delivered, fleet pays for cost of vehicle MINUS voucher amount

• Dealer is paid for voucher when vehicle is registered

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech

Page 6: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

(Vouchers eligible for extra $5-10K for fleet’s first three vehicles)

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

EVI voucher: $40,000

Smith Electric Step Van voucher: $45,000

Smith Electric School Bus voucher: $55,000

Page 7: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

(Vouchers also eligible for extra $5-10K for first three vehicles)

Utility truck voucher: $20,000

School bus voucher: $40,000

Refuse truck voucher: $40,000

Tractor truck voucher: $30,000

Delivery truck voucher: $20,000

Bucket truck (e-PTO) voucher: $22 - $24K

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 8: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• Class 2a plug-in hybrid trucks (coming soon)

• Aerial bucket trucks over 26,000 lbs GVW with E-PTO (Altec system now available)

• Hydraulic hybrids get $10K in additional funds*

• School buses get $10K in ARB additional funds**

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 9: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Hino hybrid voucher: $12K($5K/ voucher plus-up for fleet’s first three vehicles)

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 10: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Plug-in pick-up truck/SUV/Van Voucher: $8,000 ($10,000/voucher for first three)

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 11: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Zero-Emission

Gross Vehicle Weight in Pounds (lbs) 1 to 100 vehicles

5,001 – 8,500 lbs $12,000 

8,501 – 10,000 lbs $18,000 

10,001 – 14,000 lbs $30,000 

14,001 – 19,500 lbs $35,000 

19,501 – 26,000 lbs $40,000 

> 26,000 lbs $45,000 

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 12: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Hybrid

Gross Vehicle Weight in Pounds (lbs)

Base Vehicle Incentive

1 to 100 vehicles

6,001 – 8,500 lbs (plug‐in hybrids only)

$8,000 

8,500 – 10,000 lbs  (plug in hybrids only)

$10,000 

10,001 – 19,500 lbs $15,000 

19,501 – 33,000 lbs $20,000 

33,001 – 38,000 lbs $25,000 

> 38,000 lbs $30,000 

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 13: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• Fleet’s first three vehicles (10,000 lbs+ GVW) receive additional funding up to $10,000 per vehicle

• School bus vouchers receive an extra $10,000 per vehicle if purchased by a public school district

• Hydraulic hybrids that achieve 40% or greater fuel savings receive $10,000 in additional funding.

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 14: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

San Joaquin Valley APCD HVIP Plus-Up

Category Plus‐Up per vehicle

Hybrid Vehicle * + $15,000 Zero‐Emission Vehicle (< 8,500 lbs) + 12,000 Zero‐Emission Vehicle (< 8,500 lbs ) manufactured in the San Joaquin Valley

+ $18,000 

Zero‐Emission Vehicle (> 8,500 lbs) + $20,000 Zero‐Emission Vehicle (> 8,500 lbs) manufactured in the San Joaquin Valley

+ $30,000 

*Vehicles must be domiciled in the San Joaquin Air Basin

Hino hybrid now included ‐ $15,000 voucher w/ no SJV plus‐up

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 15: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Examples

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 16: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Example #1

• I want to purchase a hybrid delivery truck.• I visit the site: www.californiahvip.org• Freightliner M2 Delivery Truck with Eaton Hybrid

System and Cummins 6.7L Engine at 26,001-33,000 lbs GVW.

• ARB HVIP base voucher: $20,000• Additional funds for first fleet’s three vehicles:

$10,000• Total savings off purchase price: $30,000 for first

three vehicles (and you haven’t even started saving on fuel yet)

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 17: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Example #2

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

• Place my hybrid delivery vehicle in the San Joaquin Valley– Total savings off purchase price: $30,000/vehicle

for first 3 vehicles.– San Joaquin plus-up: $15,000 (unlimited number

of vehicles)Total savings: $45,000/vehicle for first three vehicles

Page 18: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

Example #3

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

• Want a battery-electric step van• Smith Electric Newton step van (26,000-33,000 lbs): • Base voucher: $45K• First three vehicles: + $10K/vehicle• Place it in San Joaquin Valley

– SJVAPCD plus-up: $20K (unlimited number of vehicles)

Total savings: $75K/vehicle for first 3 vehicles…

Page 19: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

• Hybrid electric delivery tractor – 75 miles/day• ARB HVIP base voucher: $20,000• Simple Payback with Voucher: 5 years (10 years w/o)

• Hybrid hydraulic refuse truck – 45 miles/day• ARB HVIP base voucher: $30,000 + $10,000 (efficiency)• Simple Payback with Voucher: 6 years (10 years w/o)

• Electric delivery truck – 65 miles/day• ARB HVIP base voucher: $40,000• Simple Payback with Voucher: 4.4 years (9 years w/o)

Page 20: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

• Registered HVIP dealers request the vouchers on behalf of the purchaser

• Purchaser must operate vehicle in California for at least three years

• Voucher must be requested before vehicle is titled and registered

• First come, first served. Live $ tracker on website• Over $10 million available early 2014

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 21: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

www.californiahvip.org

For help with HVIP, call the toll-free HVIP number: 888-457-HVIP

HVIP is funded by the California Air Resources Board and administered by CALSTART together with Tetra Tech.

Page 22: Making the Business Case TODAY - East Bay Clean … FY14...2013/11/11  · administered by CALSTART together with Tetra Tech. • Hybrid electric delivery tractor – 75 miles/day

www.calstart.org

Clean Transportation Technologies and Solutions SM