Significant Hybrid Purchase Incentives, Opportunities Coming in 2009
Significant funding that could assist the purchase of medium and heavy-duty hybrids is now emerging at both the state and national level. The most useful and leading-edge of these is the purchase buy-down “voucher” plan now under development by the state of California; however, the new national “stimulus” bill has the most funds in a generation aimed at alternative fuel and clean vehicles – and hybrids should qualify for those.
Some of this is directly the result of HTUF Incentive Working Group action, which is expanding. But the key take-away for fleets is that – even in the midst of the economic downturn – should be planning immediately how to take advantage of these funds and plan to make hybrid truck and bus purchases this year. HTUF will be holding a special fleet recruitment and purchase planning meeting at the Clean Heavy Duty Vehicle Conference March 16, 10:30 am – Noon, in Long Beach. Please plan to take part (www.chdv.org).
The California plan creates a simplified voucher to provide fleets a significant buy-down right at the time of purchase of a hybrid truck. It is an extremely innovative plan that builds directly on the HTUF Incentives Working Group recommendations and is supported by HTUF. More details on that plan and its timeline below.
First, let’s look at the stimulus,
American Recovery and Reinvestment Act, plan opportunities. Significant new funds – most in a generation – have been placed in both the EPA’s Diesel Emission Reduction Act (DERA) program - $300 million – and the Department of Energy’s (DOE) Alternative Fueled Vehicles Pilot Program - $300 million – to be run through Clean Cities. Both programs are aimed at vehicle deployments and have a jobs-creation goal. Both programs allow hybrid vehicle purchase either explicitly or by inference. However, both programs also will require relatively complicated proposals be submitted to be competitively judged. It also appears that the DOE funds may require a state or local public agency, or metropolitan planning organization, to submit the proposals. Fleets should be aware that the timing on these funds is fast, and they should be considering their potential purchase commitments immediately. The solicitations may hit the streets before or in March. This is a moving target, so check back often: the HTUF Web site will have information as it comes.
Our initial information is that the agencies will prefer larger proposals to help them manage the funds. CALSTART’s HTUF program and its partners at EDF hope to help fleets organize large multi-fleet, vehicle and regional proposals. Please contact us to let us know your interest in purchase and being involved in a proposal. (There are other funding opportunities, as well. CALSTART members will be receiving updates on the full stimulus bill breakdown.)
Meanwhile, the California Air Resources Board (CARB) is finalizing plans – pending approval – of a significant and meaningful incentive program targeted directly at medium and heavy-duty hybrids. CARB proposes dedicating $26 million in 2009/2010 funds for purchase vouchers to be paid directly to fleets who buy qualifying hybrid trucks for use in the state. The vouchers will likely range from $20,000 to $40,000 per vehicle, and would be paid at time of purchase. The goal is to reduce the upfront incremental cost of the vehicles by about half, something strongly supported by HTUF which applauds the state’s efforts.
The funds come from a special clean transportation investment program CALSTART helped create widely known as AB 118. The California Energy Commission (CEC) will also be managing funds, some of which will likely assist hybrid deployment, demonstrations and development.
We encourage fleets and manufacturers to provide comments and support to these agencies as they finalize their rules. Most importantly, we encourage fleets to work with us to commit to purchasing hybrid trucks, and notify us of their desired purchase volumes and timing so we can assist the state plan for the program. Join us for a special fleet purchase commitment workshop March 16 in Long Beach as part of the Clean Heavy Duty Vehicle Conference (www.chdv.org).
Funding Resources: