Air Resources Board MeetingSacramento, California

June 24, 2010

A B 118 : Air Qualit y Improvemen t Progra m (AQIP)

Propose d FY 2010-1 1 Fundin g Plan

Air Resources Board Meeting Sacramento, California

June 24, 2010 CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY

Air Resources Board

Presentatio n Outline

• Background on AQIP

• Summary of FY 2009-10 projects

• Proposed FY 2010-11 Funding Plan

• Staff recommendation

Guidin g Principles • Support advanced technologies

to meet post-2020 SIP goals and climate change goals

• Focus on areas underserved through other incentive programs

Progra m Benefits • Provide immediate emission

reductions

• Accelerate large-scale deployment of cleaner technologies

• Support SIP and Climate Change commitments

• Enable future regulations

F Y 2009-10 AQI P Projects

Summary: FY09-1 0 Projects

Project s

Hybri d Truc k & Bus Voucher

Clea n Vehicl e Rebate

Award

$20.4M

$4.1M

Law n & Garde n Equip . Replacement

$1.6M

Agricultura l UT V Rebate

Advance d Demonstrations

$1.1M

$2.0M

Fundin g Revenues ~$30M

Coordination with CEC’s AB 118 Program

• Advanced technology workforce training

• On- and off-road hybrid vehicle demonstration

• Infrastructure for electric and hydrogen vehicles

Propose d F Y 2010-11 AQI P Fundin g Plan

Propose d FY10-1 1 AQIP Projects Allocation ($M)

Hybrid Truck/Bus Voucher 25

Clean Vehicle Rebate 5.0

Lawn & Garden Equip. 1.0

Agricultural UTV Rebate 0.5

Off-Road Hybrid Pilot 3.0

Advanced Techn Demos 5.5

TOTAL $40M

EO contingenc y authorit y fo r reduce d revenue s

Hybrid Truck & Bus Voucher Incentive

Project (HVIP) F Y 09-1 0 Fund s Left : $1.6M F Y 10-1 1 Target : U p t o $25M

• Consumer voucher for ~half the incremental cost of a new hybrid

• Spur hybridization of fleets

• Support Scoping Plan’s truck hybridization measure to reduce CO2 emissions

Cost vs. Production Volume

Prototypes Incentives Spur 2006-08 Market 2009-13 -10 100-

-8 Market Acceleration

2014-20 80-

-6 60- Robust 2020+ -4 40-

-2 20-

10/yr 100/yr 1,000/yr 2,500/yr 10,000/yr

Individual Supplier Hybrid Driveline Volume

Incr

emen

tal C

ost (

$000

)

Fue

l Eco

nom

y P

ayba

ck (

year

s)

Regiona l Distribution o f HVI P Trucks

600 + Vouche rs Issued

Regiona l Distribution o f HVI P Trucks

South Coast

274

600 + Vouche rs Issued

Regional Distribution of HVIP Trucks

South Coast

274

Bay Area

224

600+ Vouchers Issued

Regional Distribution of HVIP Trucks

San Joaquin

Valley

39

South Coast

274

Bay Area

224

600+ Vouchers Issued

Regional Distribution of HVIP Trucks

San Joaquin

Valley

39

South Coast

274

Sacramento

30

Bay Area

224

600+ Vouchers Issued

Regiona l Distribution o f HVI P Trucks

Other Regions 10

San Joaquin

Valley

39

South Coast

274 San Diego

22

Sacramento

30

Bay Area

224

600 + Vouche rs Issued

Update d Vouche r Amount s

$15,000* $20,000

$25,000 $30,000 *$20,000 for electric vehicles

Clea n Vehicl e Rebat e Proje ct

(CVRP) F Y 09-1 0 Fund s Left : $3.6 M F Y 10-1 1 Target : U p t o $5M

• Consumer rebat e fo r zero-emissio n an d plug-i n hybri d passenge r vehicles

• Suppo rt transportatio n secto r emissio n reductions neede d i n th e post-202 0 timeframe

• Accelerat e commercializatio n o f th e cleanes t vehicle s available

ZE V Dema nd Projections

25

Timing of next 20

15

10

5

0 2009-10 2010-11 2011-12 2012-13

Current and Proposed Funding

projected vehicle sales

funding decision

Cum

ulat

ive

vehi

cles

(tho

usan

ds)

Law n & Garde n Equipmen t Replacemen t

Proje ct (LGER) F Y 09-1 0 Fund s Left : $0.5 M F Y 10-1 1 Target : U p t o $1M

• Replace gas-powered equipment with zero-emission equipment

• Augment non-attainment air districts’ equipment replacement programs.

• Spur development of commercial equipment

Agricultura l UT V Rebat e Project

F Y 09-1 0 Fund s Left : $0.9 M F Y 10-1 1 Target : U p t o $0.5 M

• Rebate to California growers for new zero emission utility terrain vehicles

• Pays 15 percent of the MSRP (avg. $1,600 per vehicle)

• Accelerate consumer acceptance of zero-emission work vehicles

Off-Roa d Hybri d Equipmen t Pilo t Project

FY 10-11 Target: Up to $3M

• Accelerate deployment and evaluateemission benefits of off-road hybridequipment

• Accelerate transition of hybrid technology tothe off-road sector

• Groundwork for future deployment funding

Demonstration Projects

FY 09-10 Funds Left: $0 FY 10-11 Target: Up to $5.5M

• Demonstrate the viability of advanced technology vehicles, equipment and emission controls

• Accelerate commercialization and deployment of cleaner technologies in the California marketplace

Staf f Recommendation

• Approv e th e AQI P F Y 2010-1 1 Fundin g Plan

Structure BookmarksProposed FY 2010-11 Funding Plan CALIFORNIA ENVIRONMENTAL PROTECTION AGENCY Guiding Principles Program Benefits Summar y: FY09-1 0 Projects Coordination with CEC’s AB 118 Program Proposed FY10-11 AQIP Projects TOTAL Hybrid Truck & Bus Voucher Incentive Project (HVIP) Cost vs. Production Volume Regional Distribution of HVIP Trucks Regional Distribution of HVIP Trucks Regional Distribution of HVIP Trucks Clean Vehicle Rebate Project (CVRP) Equipment Replacement Project (LGER) Agricultural UTV Rebate Project Off-Road Hybrid Equipment Pilot Project Demonstration Projects