Putting Public Dollars to Work: Voucher Incentive Programs for Cleaner Trucks and Buses. Northeast Diesel Collaborative Wednesday, October 17, 2018

Transcription

1 Putting Public Dollars to Work: Voucher Incentive Programs for Cleaner Trucks and Buses Northeast Diesel Collaborative Wednesday, October 17, 2018

2 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

3 Connecting Technologies and Applications 3

4 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

5 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

6 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

7 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

8 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

9 California California Hybrid and Zero -Emission Truck and Bus Incentive Project (HVIP) Agency partners Funding amount Funding source CARB $313 million to date 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 % of incremental cost, up to $300,000 Vehicle classes 2-8 (GVWR >6,000) Eligible fleets Availability Distinguishing features Private, public, non-profit First-come, first-served, $80 million available now Escalators for vehicles domiciled in disadvantaged communities (CalEnviroScreen 3.0) 9

10 California HVIP Incentives Zero-emission trucks and buses Hybrid truck conversions Low-NOx NG 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 $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 GVWR (lbs) 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 $45,000 10

11 New York New York Truck Voucher Incentive Program (NYT-VIP) Agency partners Funding amount Funding source NYSERDA, NYSDOT, NYCDOT $19 million 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 Eligible fleets Availability All-electric vehicles must be domiciled 70% of time in one of 30 non-attainment counties Private, public, non-profit First-come, first-served 11

12 NYT-VIP Incentives Voucher covers up to 80% of incremental cost, subject to cap Cap varies by technology/fuel and vehicle class 12

13 Chicago Drive Clean Chicago (DCC) Agency partners Funding amount Funding source Chicago DOT $12 million 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 Geographic restrictions Availability Distinguishing features Private, public, non-profit Must operate in 6-county Chicago area First-come, first-served no funds left Separate infrastructure incentive fund 13

14 Technology # Vehicles % Amount Hybrid -electric 2,405 62% $ 62,644, Zero -emission 1,286 33% $ 119,745, epto 161 4% $ 3,898, Total Electric 3, % $ 186,288, Low-NOx Engines 1, % $ 11,554, Technology # Fleets # Vehicles Voucher Funds DPF $2,452, EV $5,673, CNG 4 71 $3,033, CNG Conversion 4 15 $334, Hybrid $1,198, Hybrid Conversion $1,830, Total $14,522, Technology # Fleets # Vehicles Voucher Funds EV -Truck $5,846, Hybrid -Truck $5,430, Total Truck $11,276, EV -Taxi 4 85 $855, CNG -Taxi 1 2 $16, Total Taxi 5 87 $871,

15 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

16 Geographic Prioritization and Environmental Justice New York s VIP has restricted vehicle deployment to counties in or recently listed for nonattainment to comply with CMAQ program requirements California s VIP provides additional funding for vehicles domiciled in areas designated as disadvantaged 16

17 Rubber Meets Road: DHL EVs 22 all-electric (BEV) cargo vans used in NYC Zenith Motors creates opportunities for electrification NYT-VIP creates flexibility to right-size vehicles and range for fleet needs 17

18 Rubber Meets Road: Verizon Hybrids 238 hybrid-electric vans replace gasolinepowered NYC fleet Produced by XL and funded by NYT-VIP Verizon chief sustainability officer: With the addition of these hybrid vehicles, our fleet is as efficient as ever as we continue to use less fuel year after year. 18

19 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 Green technology helps generate new business New technologies and fleet incentives have made CNG trucks favorites of drivers 19

20 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 sustainability objectives? 20

21 Get Involved in a VIP! CALSTART points of contact: Dan Welch dwelch@calstart.org, (718) Ben Mandel bmandel@calstart.org, (929) Voucher Incentive Program websites: CA HVIP: NYT-VIP: Drive Clean Chicago: 21