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Putting Public Dollars to Work: Voucher Incentive Programs for Cleaner Trucks and Buses
Northeast Diesel Collaborative Wednesday, October 17, 2018
Agenda
• CALSTART Overview
• Basics of a Voucher Incentive Program
• VIPs in Practice: CA, NY, Chicago
• Funding Sources & Design Elements
• Case Studies
• Group Discussion and Questions
2
Connecting Technologies and Applications
3
What is a Voucher Incentive Program (VIP)?
• Mechanism to distribute clean vehicle
funds
• Reduces upfront costs to fleets
• Provides immediate reimbursement
• Brings automakers into new markets
• Accelerates cleaner deployment of
medium- and heavy-duty vehicles
• Can be supported from many funding
sources
4
Why a VIP? Faster, Easier Fleet Adoption
• Provides equitable access to clean vehicles
• Point-of-purchase incentive gets funds to fleet operators quickly and with certainty
• Directs funds to “shovel-ready” projects • Adaptability for new vehicle technologies, fleets
users, vendors, and manufacturers
• Dealer network reduces inefficiencies and creates familiarity with process
• Builds a robust, regional clean vehicle economy
5
Why a VIP? More Flexible Program Design
• The voucher mechanism can be tailored to:
– Support various technologies/fuels/vehicle classes
– Conform to requirements of funding source(s)
– Set funding caps by category
– Emphasize environmental justice
6
How Does a VIP Work?
• Manufacturer or authorized dealer applies to list vehicles for voucher eligibility and website listing
• Vendor selling approved vehicle applies to be approved voucher recipient
• Fleet purchases an eligible vehicle from an eligible vendor with voucher amount subtracted
• Vendor works with Voucher Processing Center to process voucher request
• Once vehicle is delivered and all documentation is submitted, vendor is reimbursed
7
Where are There VIPs in Place?
• California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP)
• New York Truck Voucher Incentive Program (NYT-VIP)
• Drive Clean Chicago
8
-
California
California Hybrid and Zero Emission Truck and Bus Incentive Project (HVIP)
Agency partners CARB
Funding amount $313 million to date
Funding source CA AB32 Cap-and-Trade Auction Revenues
Voucher types • Electric technologies (all-electric, hybrid-electric,
electric power take-off/utility)
• Low-NOx natural gas
Voucher amount 50-100% of incremental cost, up to $300,000
Vehicle classes 2-8 (GVWR >6,000)
Eligible fleets Private, public, non-profit
Availability First-come, first-served, $80 million available now
Distinguishing features Escalators for vehicles domiciled in disadvantaged
communities (CalEnviroScreen 3.0)
9
California HVIP Incentives
conversions 6,001 – 8,500
8,501 – 10,000
$2,000
$6,000
10,001 – 19,500 $9,000
19,501 – 26,000 $12,000
26,001 - 33,000 $15,000
> 33,000 $18,000
Zero-emission
trucks and buses
Hybrid truck
Outside
GVWR (lbs) DAC In DAC
5,001 – 8,500
8,501 – 10,000
10,001 – 14,000
14,001 – 19,500
19,501 – 26,000
26,001 – 33,000
>33,000
Hydrogen Fuel Cell
Electric Truck
GVWR (lbs)
$20,000
$25,000
$50,000
$80,000
$90,000
$95,000
$150,000
$300,000
$25,000
$30,000
$55,000
$90,000
$100,000
$110,000
$165,000
$315,000
$45,000Low-NOx NG
10
New York
New York Truck Voucher Incentive Program (NYT-VIP)
Agency partners NYSERDA, NYSDOT, NYCDOT
Funding amount $19 million
Funding source CMAQ
Voucher types • Alternative fuel vehicles (hybrid-electric,
natural gas) in NYC
• Diesel emission control devices in NYC
• All-electric vehicles statewide
Voucher amount 80% of incremental cost, up to $150,000
Vehicle classes 2b-8 (GVWR >8,500)
Geographic
restrictions
All-electric vehicles must be domiciled ≥70% of
time in one of 30 non-attainment counties
Eligible fleets Private, public, non-profit
Availability First-come, first-served
11
NYT-VIP Incentives
• Voucher covers up to 80% of incremental cost, subject to cap
• Cap varies by technology/fuel and vehicle class
12
Chicago
Drive Clean Chicago (DCC)
Agency partners Chicago DOT
Funding amount $12 million
Funding source CMAQ
Voucher types • Trucks: hybrid and all-electric
• Taxis: hybrid and all-electric
Voucher amount Truck: 80% of incremental cost, up to $150,000
Taxi: 80% of incremental cost, up to $10,000
Vehicle classes 2b-8 (GVWR >8,500) (truck program)
Eligible fleets Private, public, non-profit
Geographic restrictions Must operate in 6-county Chicago area
Availability First-come, first-served – no funds left
Distinguishing features Separate infrastructure incentive fund 13
-
-
-
-
-
-
Technology # Vehicles % Amount
Hybrid electric 2,405
1,286
161
62% $ 62,644,776.12
33% $ 119,745,335.00
4% $ 3,898,000.00
Zero emission
ePTO
Total Electric 3,852 100% $ 186,288,111.12
Low-NOx Engines 1,044 100% $ 11,554,933.00
Technology # Fleets # Vehicles Voucher Funds
DPF 9 124 $2,452,304.80
EV 18 65 $5,673,093.00
CNG 4 71 $3,033,524.00
CNG Conversion 4 15 $334,272.00
Hybrid 22 83 $1,198,179.20
Hybrid Conversion 3 236 $1,830,776.00
Total 60 594 $14,522,149.00
Technology # Fleets # Vehicles Voucher Funds
EV Truck 18 49 $5,846,717.00
Hybrid Truck 37 239 $5,430,160.00
Total Truck 55 288 $11,276,877.00
EV Taxi 4 85 $855,440.00
CNG Taxi 1 2 $16,000.00
Total Taxi 5 87 $871,440.00
14
Funding for VIPs
• Various sources can help states and localities fund clean vehicle
voucher programs
– Volkswagen Appendix D (Mitigation Trust) Settlement
– Federal: CMAQ, DERA
– State or Regional Cap-and-Trade (California AB32, RGGI)
– Other: Bond measures?
• Funding should be reliable, long-term, and have clearly stated
terms and conditions
The VIP tool is robust to the program requirements
of various funding sources and is stackable with other
incentive funds 15
Geographic Prioritization and
Environmental Justice
New York’s VIP has restricted vehicle deployment to counties in
or recently listed for non-
attainment to comply with CMAQ
program requirements
California’s VIP provides additional funding for vehicles domiciled in
areas designated as disadvantaged 16
Rubber Meets Road: DHL EVs
• 22 all-electric (BEV) cargo vans used in NYC
• NYT-VIP creates flexibility to right-size vehicles and
range for fleet needs
• Zenith Motors creates opportunities for electrification
17
Rubber Meets Road: Verizon Hybrids
• 238 hybrid-electric vans replace gasoline-powered NYC fleet
• Produced by XL and funded by NYT-VIP
• Verizon chief sustainability officer: “With the addition of these hybrid vehicles, our
18
fleet is as efficient as ever as we continue to use less fuel year after year.”
Rubber Meets Road: Manhattan Beer
CNG Delivery Trucks
• 150 CNG delivery trucks in regional fleet
• Volvo trucks with Cummins CNG engines
• Vehicles are spacious and reliable
• CNG models keep deliveries on schedule
• New technologies and fleet incentives have made CNG trucks favorites of drivers
• Green technology helps generate new business
19
Discussion
We want to hear from you!
• For agencies: How is this program applicable to
your jurisdiction? Are there benefits or barriers
specific to your region?
• For fleets/manufacturers: How could additional
voucher programs advance business and/or
20
sustainability objectives?
Get Involved in a VIP!
CALSTART points of contact:
• Dan Welch – [email protected], (718) 589-7726
• Ben Mandel – [email protected], (929) 295-6540
Voucher Incentive Program websites:
• CA HVIP: https://www.californiahvip.org/
• NYT-VIP: https://truck-vip.ny.gov/
• Drive Clean Chicago: http://www.drivecleanchicago.com/
21