ZIPII Incentive StakeholderWorking Group

Air Resources Board

California Environmental Protection Agency

December 17, 2001

ARB Staff Presentation

Judy Yee and Gayle Sweigert

Goals for Dec 17th Stakeholder Goals for Dec 17th Stakeholder Conference CallConference Call

• Provide a brief update to Stakeholders on ZIP II Guidelines

• Provide opportunity for Stakeholders to discuss and provide input on the fleet portion of ZIP II Guidelines prior to development of written draft proposed by ARB Staff

Overview of AgendaOverview of Agenda• Guideline Status• Proposed Program Goals (ZIP II Fleet Program)

– Staff Introduction

– Discussion

• Administrative Structure (ZIP II Fleet Program)– Staff Introduction

– Discussion

• Project Criteria (ZIP II Fleet Program)– Staff Introduction

– Discussion

Status of ZIP II GuidelinesStatus of ZIP II Guidelines

Overview of ZIP I and IIOverview of ZIP I and II

• ZIP I (Lowenthal), provides grants of $9,000/vehicle for qualified ZEVs– Full performance EVS

– City EVs with no freeway restriction

– Vehicles must be leased/purchased by Dec. 31, 2002

• ZIP II– Two programs (ZEV grants and fleet program)

– Grants up to $5,000 through mid-2004; additional vehicle types considered for inclusion in program

– Fleet program grants up to $11,000 awarded through competitive bid process

– ARB Guidelines to cover both programs

Guideline Development Guideline Development ActivitiesActivities

• Stakeholder Conference Calls - Dec. 17 & Jan. 8• Stakeholder/Individual Meetings (ongoing)• Public Workshops -- Dec. 19 & Jan. 10

– Dec. 19, 2001 in Sacramento, focus on ZEV grants

– Jan. 10, 2002 in Los Angeles, focus on Fleet Program • Proposed Guidelines released--Mid-Late January• ARB Board Meeting--February 21, 2002

Proposed ScheduleProposed ScheduleFor ImplementationFor Implementation

• Final Guidelines--April 2002 • Pre-Solicitation Workshops--April-May 2002• Solicit Proposals--June-August 2002• Announce Grants---Sept 2002• Implement Projects• Second Solicitation in 2003?

Related ActivitiesRelated Activities

• December 13th ARB Board Meeting on Environmental Justice Policies (El Monte)

• ARB Proposed Policies and Actions for Environmental Justice available for public comment (www.arb.ca.gov/ch/ch.htm)

• December 21st SCAQMD Board Meeting on Environmental Justice Criteria (for more information

contact www.aqmd.gov)

ZIP II--ZEV Grants ZIP II--ZEV Grants

• Status of staff proposals for vehicle categories and grant levels

Guideline DevelopmentGuideline DevelopmentZIP II Fleet ProgramZIP II Fleet Program

Proposed Program Goals

Legislative DirectionLegislative Direction

• Implement ZEV grant program for fleets operating in nonattainment areas

• $10 million appropriated/up to $11,000/vehicle– $20,000 if combination with Lowenthal funds allowed

• Award grants through a competitive bid process

• Give preference to communities that are disproportionately impacted by poor air quality, including poor communities & communities of color

Proposed Program GoalsProposed Program Goals• Implement an incentive program for ZEVs for fleets that operate

in the geographical areas of the State that suffer from the greatest exposure to poor air quality

• Promote the deployment of ZEVs in communities that are disproportionately impacted by poor air quality, especially low income & communities of color

• Encourage projects that showcase ZEV technology to communities, or include education on the benefits of ZEV technology, so that all communities--including low income and communities of color-- can take a more active role in decisions affecting their local air quality

DiscussionDiscussion

• Proposed Program Goals

Guideline DevelopmentGuideline Development

• Administrative Structure Who administers? How are projects evaluated? Type of projects # Solicitations

What Kind of Projects Should What Kind of Projects Should Be Solicited?Be Solicited?• One or two large projects

– example: Post-Office or other large entity who would use ZEVs in target communities

• Small projects– Placing small # of vehicles with local fleets

• Combination large/small projects• Should we only have one solicitation (2002) or two

solicitations (2002 and 2003)• Divide funding by air districts or regions, or select best

projects in target areas?

Administrative ResponsibilitiesAdministrative Responsibilities

• Who gets grants?– Automakers, fleets? If fleets, how should we make

payments (before vehicle delivery, when vehicles delivered, etc)

• Who Administers Program?– ARB, Districts?

• Two Elements of Program Administration– Grant Solicitation/Program Management/Payments

– Project Review and Selection

Technical Review Technical Review

• How should projects be evaluated?– ARB, Districts, Technical Review Committee

• How should grants be awarded?--best projects, allocated by air district/geographical area?

• How could a Technical Review Committee be utilized?

• How should a Technical Review Committee be composed?

Group DiscussionGroup Discussion

• What type of projects should be solicited?• How many solicitations?• How should projects be evaluated?• How should a Technical Review Committee be

composed and function?• How should decisions on projects be made?• Who should administer: ARB or Districts?

Guideline DevelopmentGuideline Development

Project CriteriaFleet Definition

Ranking Criteria

What is a Fleet?What is a Fleet?

• How should we define a qualifying fleet?– Any Organization/Business/Government Agency that

owns or leases vehicles for the purposes of carrying out business

– Organizations/Business/Agencies that operate or control a specified number of vehicles (10, 25, 50, 100? -- or more)

– Any organization that agrees to centrally manage a specified number of vehicles for purposes of implementing a Grant proposal

– Other options/definitions?

What should be included in Project What should be included in Project Ranking CriteriaRanking Criteria??• Projected ZEV miles in communities disproportionately

impacted by poor air quality?

• Potential to reduce community exposure/emission reduction estimates?

• Community involvement in project?• Scope of project? (Minimum/Maximum project size)

• Ability to coordinate vehicles & manage project?

• Vehicle warranty & support?

• Sponsors/co-funding/Automaker participation?

• Education/outreach components included?

• Public/workplace infrastructure included?

DiscussionDiscussion

• How should we define a qualifying fleet?• What should be included in the ranking criteria

that we use to evaluate projects?• What kind of tools are needed to identify target

geographical areas?

Stakeholder Comments SolicitedStakeholder Comments Solicited• Proposed Program Goals• Administrative Structure

– Type of Projects / # of Solicitations

– Who gets grants--automakers/fleets/others

– How should grants be awarded?--best projects, funding allocated by air district/region

– Who should administer: ARB or Districts?

– Grant Evaluation Process/Technical Committee

• Project Criteria– Fleet Definition

– Project Ranking Criteria

– What kind of tools are needed to identify target areas?

Stakeholder CommentsStakeholder Comments

• Comments/Input solicited by January 4, 2002• Conference call on January 8th -- staff will discuss

proposals and Stakeholder comments received• Comments can be provided by email, fax, or

telephone, or by in-person meetings with staff

ARB Staff ContactARB Staff Contact

Judy Yee

jyee@arb.ca.gov

Gayle M. Sweigert

gsweiger@arb.ca.gov