FREQUENTLY ASKED QUESTIONS :: Hybrid Truck and Bus Voucher Incentive Project

California Hybrid Truck and Bus Voucher Incentive Project

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Monday, February 6, 2012

Hybrid Truck & Bus Voucher Incentive Project

FREQUENTLY ASKED QUESTIONS

	1) Program Basics 2) Vouchers 3) Getting Trained 4) Vehicles 5) Funding 6) South Coast HVIP, and Waiting List 1) Program Basics What is the Hybrid Voucher Incentive Project (HVIP)? The California Hybrid Truck and Bus Voucher Incentive Project (HVIP) is a program created by the California Air Resources Board (ARB) to help speed the early market introduction of clean, low-carbon hybrid and electric trucks and buses. HVIP helps build the market by reducing the cost of these vehicles for truck and bus fleets that purchase and operate the vehicles in the State of California. The HVIP voucher is intended to reduce about half the incremental costs of purchasing hybrid and electric medium-duty and heavy-duty trucks and buses. HVIP will help fleets purchase vehicles immediately and will meaningfully increase the production of these vehicles. Read About the Project to learn more. Why did the ARB create this program? The ARB created the HVIP to speed the market introduction of low-emitting hybrid and electric trucks and buses. Hybrid and electric trucks and buses are fairly new technology and are therefore more expensive than traditional vehicles, especially in the early market when production volumes are low. ARB recognizes that these vehicles have the proven ability to reduce criteria and greenhouse gas (GHG) pollutants in California and aims to accelerate the penetration of these cleaner vehicles to meet state clean air regulations and climate change goals. I would like to be notified of upcoming HVIP events and news items? How can I do this? If you are not already receiving HVIP emails and wish to do so, please contact David Kantor at CALSTART to get on the list. Who do I call if I have any problems? If you have any problems or questions, please call the HVIP toll-free hotline at 888-457-HVIP. [back to top] 2) Vouchers Why did ARB design the program around a voucher? ARB worked with industry, fleets, and other organizations to learn what approach would best speed the introduction of low-emitting medium-duty and heavy-duty hybrids and electric vehicles. One of the major barriers was the current high cost of these advanced vehicles at low production, and the fact that commercial fleet purchasers need the cost reduction to come at the time of purchase to change their purchase decision. In the case of hybrids, the amount of reduction needed in the early market was determined to be roughly half the incremental (extra) cost of a hybrid compared to a conventional vehicle. Finally, ARB determined that a simplified program, not requiring a long proposal process, was best for spurring these purchases. The voucher provides this solution via a streamlined, first-come, first-served incentive, which allows fleets to guarantee a reduced price on an eligible vehicle at the time of order. Dealers then get a rapid payment for the voucher at the time of vehicle delivery and registration. How much are the vouchers worth? The voucher amount ranges from $10,000 to $30,000 for eligible vehicles depending upon the vehicle’s Gross Vehicle Weight Rating (GVWR). Please see Section 2.6 of the FY11 HVIP Implementation Manual for a full table and explanation of the voucher system. Why are there different voucher funding amounts between vehicles? Vouchers are defined by the weight range. The heavier the vehicle’s gross vehicle weight rating, the greater the voucher funding. For a list of the vouchers, per weight range, please see Section 2.6 of the FY11 HVIP Implementation Manual. Can I apply for more than one voucher? Yes. However, only one voucher is assigned per vehicle and the limit per fleet is 100 vouchers. I represent a dealership. How do I apply for a voucher? Dealers must be registered in the HVIP program to be able to submit voucher requests for their customers’ orders. As a dealer, your first step is to successfully complete HVIP Training. Once the terms and conditions of the program are signed and the training is completed, you will be eligible to apply online for vouchers. Please note that a dealer always applies with a fleet for each voucher; and each application must represent a real hybrid or electric truck order. For more information, please go to the For Dealer page. For a sample "Dealer Terms & Conditions" click here For a sample "Purchaser Terms & Conditions" click here If you were a registered dealer in 2010, do you have to do anything this year to become eligible again? Not at this point. HVIP 2011 web enhancements may require dealers to re-register in the coming months, but you will be notified ahead of time if this becomes necessary. Does fleet size matter? No. The size of the fleet does not matter. Fleets can order as many as 100 vouchers, or as few as one. I represent a fleet. How do I apply for a voucher? The dealers are the ones who create and submit the vouchers. They’ll do all the work. The purchasers just need to choose one of the HVIP-approved dealers and work with them. For a sample "Dealer Terms & Conditions" click here For a sample "Purchaser Terms & Conditions" click here I represent a large fleet that buys trucks directly from a manufacturer and not a dealer. How would HVIP work for me? Some large fleets purchase vehicles directly from a manufacturer. The manufacturer in this instance would be treated as a dealer for the purposes of HVIP, and the fleet would work directly with the manufacturer to apply for vouchers directly. The manufacturer simply has to make sure that its representative has gone through the dealer training already. How many registered dealers does HVIP have? More than 100. [back to top] 3) Getting Trained I missed the in-person HVIP Training. What do I do now? The HVIP Team held workshops across the State of California in January of 2011 to get the word out to fleets and dealers. If you missed them, don’t worry: they’re posted online. There is a short fleet outreach webinar educate fleets about HVIP and the benefits of hybrid trucks and buses, as well as a webinar for dealers to become trained and eligible for the program. There is also a short webinar that explains to dealers the differences between this year’s program and last year’s. [back to top] 4) Vehicles I represent an Original Equipment Manufacturer or a Supplier. How do I get my products on the eligible list for vouchers? If your company makes hybrid or electric trucks or buses, you can apply with ARB to place your vehicles on the HVIP-eligible vehicles list. There are specific steps you must follow. Vouchers can only be requested for vehicles approved by the ARB. Please see the ARB web site for details. What are the benefits of medium- and heavy-duty electric vehicles? Electric vehicles offer a number of benefits including zero emissions, reduced fuel costs, and quiet operations, among others. Please read more in the section: 'Making the Case for Hybrid & Electric Trucks and Buses'. Is there funding available for retrofitting? Dealers and fleets cannot request a voucher for anything that has already been registered or titled. The vehicles need to be new. It’s acceptable to have the Azure retrofit system, as long as the vehicle is new and the hybrid system has been installed before the vehicle has been titled and registered. Are buses part of the program, and if so, what sort of bus vehicles will there be? A variety of buses are available for HVIP vouchers, including school buses, transit buses, commercial buses, and shuttle buses. Please see the eligible vehicles list for the full list of eligible buses. What are the benefits of medium- and heavy-duty hybrids? Hybrid trucks and buses have been shown in testing to reduce both fuel consumption and greenhouse gas emissions by 20 to 50 percent, depending on the vehicle and its application. Some hybrids are showing even greater reductions, especially when combined with reductions from turning off the engine at work sites and at stops, with reductions from incorporating advanced designs, and with reductions from the use of low-carbon fuels. Hybrids also further reduce criteria (smog-causing) emissions beyond the level of the certified engine in the vehicle (on a gram/mile basis). ARB estimates this reduction at 25 percent. Finally, hybrid technology is also an important strategic advantage for the United States: U.S. and North American manufacturers are currently the world’s leaders in developing and producing these vehicles, which retain jobs today and create new green tech jobs in the years ahead. Please read more in the section "Making the Case for Hybrid & Electric Trucks and Buses". Are light-duty vehicles being considered for the program? HVIP only includes medium- and heavy-duty vehicles. However, zero emission light-duty vehicles are eligible for rebates under the Clean Vehicle Rebate Project. Have any hydraulic hybrids been made eligible for HVIP yet? No manufacturers have made their hydraulic hybrids eligible yet, but there has been interest from manufacturers in doing so. If any vehicles become eligible, the HVIP team will be sure to broadcast this news to fleets and dealers. [back to top] 5) Funding How do we know how much money is left? There is a ticker on the HVIP home page, and on the dealer page, so you will always know how much money remains. This reflects the real-time value of the fund, based on the vouchers requested to-date. Can HVIP vehicle funds be combined with other grant funds? Yes. In fact, the ARB encourages it. However, they won’t allow fleets to go above the full incremental cost of the vehicle with the additional grants. How much is approved for the 2011 year? The funding pot for HVIP FY11 is going to be $18,086,442, but will actually start at $16,086,442. That’s $2 million less than the budget as the program will hold back the $2 million for the public fleet set aside for the first six months. What is the $2 million “public fleet set aside” for the first 6 months? The procurement process for public fleets can often be much slower than for private fleets, as they often have to go through approval processes that may take several months. To ensure that public fleets would have the ability to participate in the project, the set-aside funding was especially created to have HVIP funding available for public fleets six months after launch. If seven months pass by and the money has not been consumed by these public fleets, it will then be released into the general fund for all fleets to pursue. It should be noted that public fleets are not limited to the set aside funding. That is, they have as much right to the general fund as the other fleets. The set aside just ensures that there will be opportunity for them to access some funding in a staggered time frame. [back to top] 6) South Coast HVIP, and Waiting List How much money has been requested from the wait list? The wait list amount changes as vouchers are accepted into the pot. The voucher funds on the Home Page reflect these changes to the funding pot in real time. When the funding pot dips into the negative values, that negative value is the actual amount of voucher funding that remains on the wait list. Are there other restrictions on the South Coast Air Quality Management District HVIP funds? The South Coast AQMD HVIP vehicles are required to stay in the South Coast district 100% of the time for at least the first three years. Do dealers have to re-register with HVIP for the South Coast Air Quality Management District (SCAQMD) HVIP? No. Registration from the ARB HVIP automatically carries over to the SCAQMD HVIP and will carry over to other future funders, so existing HVIP-registered dealers do not need to re-register. But dealers must be registered to be able to request vouchers for the wait list. In the SCAQMD HVIP, what will be the voucher amounts per vehicle? The preliminary voucher amounts for the SCAQMD HVIP will be the same per vehicle as those of the 2010 ARB HVIP. If the purchaser has not requested a voucher via the 2010 ARB HVIP, then their first vehicle will receive the extra $5,000 from the voucher funds, just as it would in the 2010 ARB HVIP. [back to top]

This project sponsored by the California Air Resources Board and implemented by CALSTART.