1. Advanced Technology Light Duty Vehicles– Working to Ensure Consumer Acceptance Clean Transportation Technologies and Solutions SM John Boesel President and CEO September 27, 2011
3. Opening Thoughts: We Are at a Crossroads Zero/Near Zero Criteria Emission/Super Low Carbon passenger cars needed to address public health and environmental concerns – what can we do ensure consumer acceptance? What barriers remain for OEMs, suppliers, and consumers? If incentives are important, action is needed. Congress may be looking to reduce rather than increase States are facing budget shortfalls California’s nation-leading incentive programs face an uncertain future Can fleets play role in jump-starting market and helping to build economies of scale?
4. Incentives: a History of California Investments in Clean Transportation Funding and Incentive Programs 2015-2016: Most clean transportation funding disappears 2007: AB 118 program created, providing up to $200 million/yr for climate and air quality 2004: AB 923increases air quality funding 1998: Carl Moyer Program created to reduce NOx ‘90s: air quality is primary focus 2000’s: climate & energy security gain importance Today: multiple prioritiesrequire new investment strategy 2003: CARB, CEC adopt petroleum reductiongoals 2006: CA adopts landmark climate changegoals 1988: CA Clean Air Act makes air quality top priority 2009: Economic downturn increases focus on job creation Policy Drivers and Priorities
5. 2010’s Are Not 1990’s: AQ, GHG, & Energy Security Solutions Now The Same No room for on-road emissions – need to get to zero emission to meet air quality goals. SCAQMD Analysis of Ozone, NOx Emissions, and Future Needs – 2030 Projections It’s no longer a question of tradeoffs between air quality, climate change, and energy security Over the longer term, the solutions needed for air quality are the same as those needed for climate and energy security
7. The Impending Sunset of California State Incentive Programs 2015:AB 923 funds disappear. ($50 million/yr) Moyer funding shrinks and focus narrows - LDV retirement no longer eligible
8. The Impending Sunset of California State Incentive Programs 2016: AB 118 program (up to $200 million/yr) sunsets. Smaller Moyer program continues, but no state funding remains for LDV incentives and technology advancement.
9. How to Solve the Impending Financial Incentives Crisis? Securing funding will be an uphill battle…we will have a greater chance of success if we: Update programs to get more bang for the buck Get air quality, climate, energy security benefits for every dollar invested Helps “sell” the idea to different constituencies Broader focus should yield job benefits as CA leads in low carbon tech Broaden the coalition Focus on multiple benefits, technologies, and approaches Create simple, flexible, business-friendly programs Start now Work collaboratively to develop programs with broad support Identify and pursue new revenue sources
10. What Else? Non-Monetary Incentives to Drive Consumer & Fleet Purchases? How to create value without direct state expenditures? HOV/HOT Lane access? Preferential parking? Tax policy changes? Changes to fee structures? All of these options will also require broad coalitions, early engagement, and strong selling points.
11. Goals for Today’s Workshop Identify needs and creative strategies for driving the market Determine what is needed for fleets to lead the way Begin the discussion around improving and extending monetary and non-monetary incentive programs Identify partners for turning today’s discussion into action
