Consumer and Fleet Incentives: Green is Good

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Consumer and Fleet IncentivesGreen is Good

• Driving Toward 2020
• The Fourth Annual MATC Green Vehicles Workshop
• March 30, 2007
• MATC-Downtown Campus
• Milwaukee, Wisconsin
• Francis X. Vogel
• Executive Director
• Wisconsin Clean Cities Southeast Area

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Green Goes Global Chinese children help General
Motors China executives celebrate their
collaboration with Shanghai Automotive Industry
Corporation (SAIC) on a joint hybrid bus project
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Driving toward 2020, President Bush proposes
that we reach Twenty in Ten, a 20 reduction in
gasoline consumption by 2017. A DaimlerChrysler
executive describes the FedEx Pilot Program
Plug-in Hybrid Sprinter to President Bush and
Secretary of Energy Bodman on March 27.
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Similarly, Governor Doyle proposes that Wisconsin
generate 25 of its power and transportation fuel
needs from renewable sources by 2025. Assembly
Bill 174, introduced March 12, creates a 1000
state tax credit for fuel-efficient hybrids.
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Government Incentives

• Tax Credits
• Clean Cities Program Funding
• Congestion Mitigation and Air Quality Improvement
  (CMAQ) Program Grants
• Emissions Reduction Funding Opportunities

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U.S. Department of Energy Clean Fleet Guide

• An objective entry point for fleets that aim to
  buy green vehicles and save money by lowering
  fuel consumption
• The Swiss Army knife of available tools, the
  Clean Fleet Guide features information on
  alternative fuel, alternative fuel vehicles
  (AFVs), alternative fueling infrastructure, fuel
  economy techniques, idle reduction measures and
  information tailored for various types of fleets
• An unbiased one-stop-shop for fleets sponsored by
  Clean Cities, an activity within DOEs FreedomCar
  and Vehicle Technologies Program

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Clean Fleet Guide Fleet Managers Toolkit

• Vehicle Make and Model Idle Reduction Equipment
  Searches
• Cost Calculators for Hybrid Electric Vehicle
  (HEV)s, Flexible Fuel Vehicle (FFV)s, Natural Gas
  Vehicle (NGV)s an interactive tool that allows
  users to compare the costs of available hybrids
  or AFVs to conventional vehicles
• Clean Fleet Strategies for Specific Fleet Types
  Airport Vehicles, Taxis, Shuttle Buses, Transit
  Buses, School Buses, Refuse Haulers, Delivery
  Vehicles, Traffic Enforcement, Police Vehicles,
  Long-Haul Trucks
• Emissions Assessment links to other sites that
  have tools and calculators to evaluate, model and
  assess vehicle emissions
• Energy Policy Act (EPAct) Compliance Assessment
  helps fleets determine if they need to comply
  with EPAct regulations
• Visit http//www.eere.energy.gov/fleetguide for
  more information

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HEV Cost Calculator

• Single Vehicle Tool user can choose one HEV and
  one conventional vehicle to compare. After
  purchase price, fuel costs, repair and
  maintenance costs, resale value and relevant tax
  incentives are factored in, the tool figures
  expected lifetime costs for both vehicles. It
  also calculates cost and emissions savings
  connected with buying the HEV.
• Fleet Tool Users can also compare two fleets of
  up to five vehicles, an HEV fleet and a
  conventional one. The tool calculates lifetime
  costs and emissions for each fleet.

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Alternative Motor Vehicle Credit Passenger
Autos Light Trucks

• Use IRS Form 8910 to claim credit for
  IRS-certified vehicles, after meeting the
  following vehicle requirements
• placed in service after 12/31/05 and purchased
  on or before 12/31/10
• original use of the vehicle must begin with
  taxpayer claiming credit
• must be acquired for use or lease by taxpayer
  claiming credit
• - If leased to a consumer, the leasing
  company may claim the credit
• - Seller to a tax-exempt entity may claim
  the credit, if the amount of the credit
• is clearly disclosed to the purchaser.
  

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Credit Phase-Out

• The credit begins to decrease 6 9
  months after at least 60,000 of the
  manufacturers qualifying vehicles have been
  sold.
• Practical Effect of Phase-Out
• Toyota Lexus Going, goinggone after 10/1/07
• Honda no phase-outyet
• GM, Ford Nissan no worries

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Honda Civic GX the Only Certified Alternative
Fuel Vehicle

• The GX, which operates solely on compressed
  natural gas (CNG), is eligible for a
  credit of 4,000. The credit represents a
  percentage of the incremental cost of the
  alternative fuel technology. Other qualifying
  technologies include liquefied natural gas (LNG),
  liquefied propane gas, hydrogen and M85 (at least
  85 methanol).

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Hybrid Heavy Trucks Credit

• Qualifying vehicles 8,500 14,000 pounds up
  to 3,000
• 14,000 26,000
  pounds up to 6,000
• Over 26,000
  pounds up to 12,000
• The Energy Policy Act of 2005 provides that
  taxpayers buying a new, qualifying vehicle
  between 1/1/06 12/31/09 may claim a credit. The
  amount depends on the weight class of the
  vehicle, its fuel economy relative to a
  conventional vehicle and the incremental cost.

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Alternative Fuel Infrastructure Tax Credit

• A tax credit equal to 30 of the cost of the
  alternative refueling property, up to 30,000
• Qualifying fuels compressed natural gas (CNG),
  propane, E85, biodiesel blends of B20 or higher,
  hydrogen
• Residential refueling equipment buyers may
  receive a tax credit of 1000 (e.g. Phill by
  FuelMaker, a natural gas home refueling
  appliance)
• Tax-exempt organizations may pass the credit back
  to the equipment seller

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Alternative Motor Vehicle Hybrid Tax Credit
Information Sources

• Internal Revenue Service (IRS)
• U.S. Department of the Treasury
• www.irs.gov/newsroom
• American Council for an Energy-Efficient Economy
  (ACEEE)
• www.aceee.org

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Congestion Mitigation and Air Quality (CMAQ)
Improvement Program

• Flexible source of funding to state and local
  governments for transportation projects and
  programs to meet Clean Air Act requirements
• Focuses on nonattainment areas, which currently
  includes southeastern Wisconsin
• Present three-year funding cycle is 2006 2008.

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CMAQ Program

• Private entities interested in applying for funds
  must find a public sponsor with taxing authority
  to serve as the lead organization
• Applicants need provide at least a 20 match of
  the projects total cost
• Eligible projects include alternative/clean fuel
  vehicles and fueling facilities, diesel engine
  idling reduction and retrofit projects
• Applications for funding in the next cycle, 2008
  2010, are due April 16
• Contact John Duffe, Wisconsin Department of
  Transportation, for more information, at (608)
  264-8723 or at john.duffe_at_dot.state.wi.us

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Emissions Reduction Funding Opportunities

• The Midwest Clean Diesel Initiative is an
  EPA-administered collaborative effort that seeks
  to reduce diesel emissions in multiple sectors.
  Contact Julie Magee, Coordinator, at (312)
  886-6063 or at magee.julie_at_epa.gov to learn of
  upcoming opportunities. MCDI also works in
  concert with the SmartWay Transport Partnership,
  a related voluntary initiative.

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Wisconsin Diesel Truck Idling Reduction
Retrofit Grants

• The Department of Commerce oversees two current
  grant programs
• 1) Diesel Truck Idling Reduction motor carriers
  are eligible for up to 70 reimbursement for the
  purchase and installation of idling reduction
  equipment. Applications may be submitted after
  July 1.
• 2) Diesel Exhaust Retrofit 50,000 total is
  available as of March 23 for 2 10 grants that
  will result the retrofitting of 5 25 trucks.
• For more information, contact Jean Beckwith at
  [phone] or at Jean.Beckwith_at_wisconsin.gov

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Incentives Case Study for Fleets Hybrids in
Transit Buses

• Benefits
• Economic while the incremental cost is
  about 150,000 - 200,000 between a hybrid and
  conventional transit bus, on a life-cycle cost
  basis, hybrids could be viable
• Fuel Economy savings range from 10 65 percent
• Lower Repair and Maintenance Costs
• Payback Period Within the Federal 12-Year Life
  Cycle Minimum
• Environmental the traditional argument
• Improved Air Quality
• Lower Greenhouse Gas Emissions
• Noticeable Noise Reduction
• Policy enhanced energy security, and
  environmental justice for affected neighborhoods
• SOURCE The Case for Hybrids in Transit
  Buses A Meta-Analysis and Literature Review
  (WestStart-CALSTART December 2005)

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A San Francisco treat last year the citys
Municipal Transportation Authority accepted the
first of 56 hybrid diesel-electric Orion VII
buses from DaimlerChrysler.
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Pimp My (Hydraulic Hybrid) Ride This Isnt Your
Sons Lowrider
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In 2006, the U.S. Environmental Protection Agency
(EPA) joined UPS, the U.S. Army, International
Truck and Engine and Eaton Corporation in
launching a first-ever hydraulic series hybrid
diesel delivery truck. The unique truck combines
a high-efficiency diesel engine with a hydraulic
propulsion system that uses hydraulic pumps and
storage tanks to store energy. Fuel economy may
improve by up to 60 percent, with a 40 percent
drop in CO2 emissions.
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International Truck and Engines SmarTruck III
concept vehicle for the U.S. Army uses a
hydraulic launch assist (HLA). An HLA can be
installed in a vehicle without significant
changes to its existing structure.
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Plug-In Hybrid Electric Vehicles (PHEVs) the
Future is Now

• DaimlerChrysler, General Motors, Ford Motor
  Company and Toyota are all considering adding
  PHEVs to their product line
• National Renewable Energy Laboratory (NREL)
  published results in 2006 from a simulation it
  conducted in St. Louis a PHEV passenger vehicle
  fleet could nearly double fuel economy compared
  to a conventional fleet. That translates to a
  fuel cost savings of over 500 per vehicle.
• The Plug-In Partners National Campaign launched
  last January seeks to show automakers that a
  market exists for PHEVs today. The U. S.
  Conference of Mayors unanimously endorsed the
  Campaign.

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IC Corporation, North Americas largest school
bus manufacturer, unveiled the nations first
hybrid school bus in 2006. A New York state
school system will purchase the bus pending
receipt of a grant to help defray its cost. The
bus can attain up to 40 percent better fuel
economy and includes a plug-in option using a
nickel metal hydride (NiMH) battery pack.
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Possible Non-Fiscal Incentives

• Free parking in designated areas for
  high-efficiency hybrids and specified AFVS
• AFVs and hybrid vehicles may use high-occupancy
  vehicle (HOV) lanes
• Preferential parking at workplaces
• Preferred curbside parking for delivery vehicles
  (e.g., green stripe parking)

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• For more information, please contact
• Francis X. Vogel
• Executive Director
• Wisconsin Clean Cities-Southeast Area, Inc.
• 231 W. Michigan St., P318
• Milwaukee, WI 53203
• 414.221.4958 - phone
• 414.221.2851 fax
• francis.vogel_at_we-energies.com
• www.wicleancities.org
• Thank you for your time and participation today
  at
• Driving Toward 2020 the Fourth Annual Green
  Vehicles Workshop!