Category Archives: NEV

Electric Mobility Canada Responds To LSV Safety Concerns

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In a recent press release Electric Mobility Canada responded to recent attacks on the safety of LSVs. The following excerpt provides some data on LSV safety performance in the real world.

Low-speed electric vehicles are statistically amongst the safest classes of vehicles in the world. A single manufacturer Reva, who sell their low speed electric vehicles throughout Asia and Europe and have amassed over 50 million kilometres in mixed use environments, report that there have been no associated fatalities with this particular vehicle. Similarly, with over 10 years of statistical data available from the United States, and a fleet of over 45, 000 low-speed electric vehicles in operation on public roads there have no associated fatalities with this class of vehicle.

Electric Mobility Canada is a national membership-based not-for-profit organization dedicated exclusively to the promotion of electric mobility as a readily available and important solution to Canada’s emerging energy and environmental issues.

Transport Canada Crash Test Video Continues Battle Against LSVs

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Transport Canada posted video footage from recent crash tests of the ZENN and what appears to be a GEM model to bolster their contention that LSVs represent a safety problem when mixing with regular vehicles on public roads. Transport Canada states that:

A low-speed vehicle may look like a car, but it is not a car. It is not required to meet the large number of safety standards (up to 40) that a regular passenger car must meet. The low speed vehicle class was originally intended for controlled low speed environments, like gated communities, where the risk of a LSV entering into a collision with a faster motor vehicle would be lower than on public roads. Transport Canada’s crash test results to date confirm that low speed vehicles provide a substantially lower level of occupant protection than conventional passenger cars.

According to The Gazette in Montreal, ZENN’s CEO Ian Clifford responded

Releasing these images without the statistical frame of reference is somewhat irresponsible on Transport Canada’s part. …Our assessment is that low-speed vehicles are among the safest vehicles on the road. I drive our vehicles all the time. I drive the vehicles with my children in them.

I contacted GEM to confirm if it is indeed a GEM model in the video and get their response to the testing but have not heard back from them, perhaps after the holiday.

NEVs A New Marketing Vehicle

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According to a recent article in Brandweek, experiential marketing and design agency Brand Xperience has launched Go Green Mobile Billboard Advertising, an all-electric vehicle fleet that brands can use to market products without emissions or using gas. It is targeting the top 25 metro markets in the beverage, retail, fashion and frozen treat categories with a fleet that currently includes two three-wheelers and three neighborhood electric vehicles (NEVs) transformed into mobile billboards. The vehicles have the added advantage of being able to be used indoors.

Army NEV Purchase Update

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Starting with 800 vehicles in fiscal year 2009 the Army expects to acquire 4,000 NEVs in the next three years for use at 44 installations. The vehicles will be leased through the General Services Administration(GSA) from US golf cart companies like E-Z Go. According to Paul Bollinger, U.S. Army Deputy Assistant Secretary, Privatization and Partnerships, the acquisition is expected to be only a start as he anticipates the Army eventually acquiring 10,000 vehicles. In addition, the Air Force and Navy have reportedly expressed interest in “piggybacking” on the Army program and Bollinger expects that they will have a need for 10,000 vehicles apiece themselves.

The vehicles are reportedly street legal and if this is the case, then they must meet the LSV regulations and this will mean a significant boost to the NEV/LSV market.

via Paul Bollinger – Defense News

Plug-In Tax Credit To Boost NEV Sales?

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As part of the recently passed H.R. 1424, the Emergency Economic Stabilization Act, consumers of plug-in electric vehicles can qualify for a tax credit of $2,500 to $7,500. I have recently spoken with a number of NEV manufacturers to get their thoughts on the legislation and as a group they are cautiously optimistic about the tax credit applying to NEVs. According to Kara Saltness of Miles Electric Vehicles the tax credit originally targeted highway speed vehicles but it appears that NEVs will qualify and that sentiment is supported by a press release from U.S. Representative Earl Pomeroy of North Dakota, home of GEM vehicles.

“Congress has taken an important step in encouraging the use of energy efficient vehicles by creating a $2,500 tax credit for plug-in electric drive vehicles like those manufactured by Global Electric Motorcars,”

According to the NEV manufacturers I spoke with the details are still currently being worked out by the government such as, who will qualify, consumers or businesses, likely both is the sentiment, and whether golf carts will be specifically excluded.

Qualifying electric vehicles must be a plug-in and be powered by a battery pack with a minimum of 4 KW of capacity. The credit would increase by $417 from $2,500 for each KW above 4KW. Most of GEMs models have a 4KW battery pack and others have 6 KW. Similarly Dynasty and Miles Automotive believe their vehicles will qualify for the tax credit as well. This could create a significant boost to the NEV market since the $2,500 tax credit translates into a sizable cost deduction for these vehicles. For example, based on prices listed on GEM???s website the tax credit would mean a discount of anywhere from 20% to 37% off the price of a GEM, depending on the model. Dynasty is currently planning on introducing a lithium ion battery pack for their vehicle in the middle of next year and this tax credit would essentially cover the extra cost of that battery, according to general manager Danny Epp.

According to the US Senate???s summary of the bill, the tax credit is slated to start in 2009 and

??????taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the total number of qualified plug-in electric drive vehicles sold in the U.S. exceeds 250,000.???

This means that NEV manufacturers will be competing against manufacturers of full-size and highway speed vehicle manufacturers for a sizable but limited number of credits. However, for 2009 and even 2010 there may not be much competition for the NEVs since not many full-size plug-in electric vehicles are expected to be available.

NEV/LSV State Registration Volume Small But Showing High Growth

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While the volume of NEV/LSV registrations are typically only in the hundreds on a state by state basis, they are demonstrating a high rate of growth. Not all states have a separate designation for NEVs/LSVs.

  • According to the South Carolina DMV registrations of LSVs increased from 58 as of July 31, 2007 to 140 this year.
  • The Wisconsin DOT reports that 68 vehicles have been registered through August, 2008 since last December???s passage of the state law allowing LSV use. The law requires state approval for instances where the vehicles cross state highways while traveling on local streets and this approval has been hard to come by.

LSV/NEV And Golf Cart Safety Concerns

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While many municipalities are passing regulations allowing LSV use there is also an undercurrent of safety concerns related to the vehicles.

  • NEV safety concerns – A few employees working for the city of Alameda have refused to use NEVs because they believe them to be unsafe.
  • Keeping with state law, Elmhurst will not allow the use of neighborhood electric vehicles on its streets. Acting on a recommendation from the Elmhurst Police Department, the Public Affairs and Safety Committee decide Monday that the low-speed, battery-powered vehicles could pose a safety hazard on Elmhurst’s arterial roads.
  • In Perry, GA the town council voted to restrict the use of LSVs to subdivisions out of a concern for safety.
  • Pawleys Island, South Carolina outlawed the use of low speed vehicles on the island over congestion and safety concerns and to be consistent with a previous ordinance outlawing the use of golf cars on island streets.
  • In June Connecticut passed a law outlawing the use of golf carts on public roads unless they are crossing the road to get from one part of the course to another.
  • Delaware, OH City council declined to pass legislation that would allow golf carts and LSVs on their roads.

LSV Road Use Legislative Developments

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Despite ZENN???s efforts Transport Canada not fully supporting LSV use – A recent Transport Canada (TC) proposal would include small trucks in the LSV category. Changes would also only allow LSV use on closed private roads such as campuses or parks and not on open public roads. TC does not recommend the use of LSVs on public roads because of safety concerns but leaves the regulation of their use up to Canada???s individual provinces. Legislation by British Columbia lawmakers will allow the use of the vehicles on roads with a speed limit of 40km/h or less and on roads with a limit of 50 km/h if local municipalities agree.

Electric-cars are being allowed in Quebec: The province has launched a 3-year pilot project involving two low-speed vehicles. The ZENN car and the NEMO truck, built in St-Jerome and Ste-Therese respectively, have a maximum speed of 40-kilometres an hour. They’ll only be allowed to travel on public roads where the speed limit is 50-km/hr or less, and will have to travel in the right lane. In light of the pilot program, ZENN is evaluating expanding sales activities in Canada. Transport Minister Julie Boulet says the goal is make the change permanent in the long-term.

More states takes steps to legalize LSVs

  • South Dakota is in the process of passing legislation to legalize the use of NEVs on low speed roads. They would have to be registered with the states DMV and would be issued special license plates. Modified golf cars or homemade vehicles would not be allowed under the bill and cities and counties could adopt tougher regulations regarding their use.
  • Massachusetts passed a bill in the House that will be going to the state Senate but it essentially limits the vehicles to roads with a speed limit of 30 mph or less.
  • Some Kentucky state legislators are pushing forward with legislation that would allow the use of low-speed vehicles on roads with speeds up to 45 mph. Similar legislation had failed to pass earlier this year. Rising fuel prices is an important impetus behind the move. The governor recently signed an executive order to allow the use of LSVs on the road. The states transportation department will be formulating the necessary regulations in the coming months. One of the reasons behind the legislation is that Kentucky is trying to become the location for a manufacturing plant for Zap vehicles in conjunction with partner Integrity Manufacturing
  • Starting on July 1, 2008 in Tennessee medium-speed electric- or gasoline-powered vehicles with four wheels can travel up to 35 mph, and can use roads where the speed limit is 40. Golf carts are excluded. Low-speed vehicles with speeds of 30-35mph will have to be reregistered as medium speed vehicles with the DMV to drive legally on the higher speed streets. In related news, The Senate Appropriations Committee recently approved a study proposed by U.S. Senator Lamar Alexander (R-Tenn.) to evaluate the potential savings in oil costs from increasing road privileges for NEVs four-wheeled vehicles that can go up to 35 mph.
  • A state legislator is trying to bring a bill to vote that would make the use of NEVs legal on certain low speed limit roads in the state. High fuel prices are the impetus behind the new legislation. Pennsylvania is one of the few states where LSV legislation has not been passed.
  • Colorado State Rep. Don Marostica, R-Loveland, is proposing a bill that will allow golf carts and other small vehicles to travel on some public roads and state highways.

More cities passing or considering ordinances for LSV/NEV use – Wisconsin being the most active. Cities recently passing or proposing ordinance allowing the use of LSVs or NEVs on local roads include:

  1. Appleton, WI
  2. Burlington, WI
  3. Delavan, WI
  4. Edgerton, WI
  5. Fontana, WI
  6. Janesville, WI
  7. Madison, WI
  8. Marchfield, WI
  9. Menasha, WI
  10. Mequon, WI
  11. Milton, WI
  12. Milwaukee, WI
  13. Onalaska, WI
  14. Oshkosh, WI
  15. Pardeevilee, WI
  16. Portage, WI
  17. Racine, WI
  18. Ripon, WI
  19. Thiensville, WI Two Rivers, WI
  20. Union Grove, WI
  21. Verona, WI
  22. Wausau, WI
  23. Wind Point, WI
  24. Du Quoin, Il
  25. Pontiac, IL
  26. Quincy, IL
  27. Rock Island, IL
  28. South Beloit, IL
  29. Berthoud, CO
  30. Ridgway, CO
  31. Edmond, OK
  32. Holmen, OK
  33. Chistianburg, VA
  34. Pulaski, VA
  35. Stuart, FL
  36. Tavares, FL
  37. Baldwin County, AL
  38. Long Beach, CA Winchester, KY
  39. Frisco, TX

Regulatory & Government Related News Update

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The following is an update on some of the regulatory and government related news affecting the NEV market that has occurred from the beginning of the year.

California aims to increase NEV credits – The California Air Resources Board announced and took comments on changes to their ZEV program. One of the proposed changes is to increase the credits for NEVs from 0.15 to 0.3 per vehicles ??????to reflect the vehicle???s positive environmental benefits but limited functionality compared with full function battery or fuel cell EVs.??? Regulators are calling for as few as 27,500 no-emission vehicles to be introduced between 2012 and 2017, compared with 75,000 in the existing mandate.

The following synopsis is from my interview with a program manager: The proposal will be reviewed within a year or less and other changes may move partial ZEV vehicles into the low emission program and hybrids into the green house gas program which will push vehicles in these programs down to the emission levels of these type of vehicles respectively. The idea is to leave the ZEV program as an incubator for new technologies with the goal of bringing these technologies to market quickly. The inclination is to make these requirements more stringent to speed up bringing technology to the market. This begs the question of where NEVs will fit since their technology is not new and a viable market has been established.

Arizona drafts zero emission vehicle mandates – In January of this year state environmental officials in Arizona released draft rules that would mandate that 11 percent of each company’s vehicles sold in Arizona beginning in the 2011 model year have zero emissions. The percentage would increase to 16 percent by 2018. Other options for meeting the standards include selling more partial zero emission vehicles or purchasing zero emission vehicle credits from other manufacturers. Currently NEVs are the primary zero emission vehicles operating on the roads.

Alternative fuel vehicle rebates – California is offering rebates of up to $5,000 to residents who purchase alternative fuel vehicles. $1.62 million in rebates are scheduled to be granted statewide by California Center for Sustainable Energy, an independent nonprofit organization based in San Diego. Owners of Vectrix electric motorcycles may qualify for up to $1,500 and Global Electric Motorcars owners may receive $950 and $1,300.

According to the California Air Resources Board website the 2008 model year Miles ZX40S AD and ZX40ST neighborhood electric vehicles have been added to the list of vehicles eligible for rebates under the Alternative Fuel Vehicle Incentive Program (also known as Fueling Alternatives). They will be available for a $1,500 rebate, Other models from GEM, Zap and ZENN are also available for rebates ranging from $950 to $1,500. See the following list for more information.

New car buyers in the state of Washington are going to get a break on their sales taxes when they buy some vehicles that run on alternative fuels. The tax break (9.3 percent in the Seattle area) covers vehicles that run on natural gas, propane and hydrogen, as well as ???neighborhood electric vehicles??? or ???medium speed vehicles??? (street legal, but can???t go faster than 35 mph).

Chrysler, maker of the GEM, and Vectrix, an electric scooter manufacturer, are both trying to get their vehicles covered by a new tax credit for plug-in electric cars. The legislation now covers ???regular??? sized passenger vehicles which are eligible for a $3,000 tax credit when purchased. Chrysler and Vectrix are pushing for a $1,500 credit for ???urban commuter vehicles???. The legislation is part of a larger bill covering renewable energy and other tax credits that may be passed in the coming months.

Current NEV manufacturers listed as GSA suppliers – NEV manufacturers listed on the General Services Administration supplier list include GEM, ZENN, Columbia Parcar and Classic Golf Car