Category Archives: Regulation & policy

ARPA-E Funding More EV Battery Research

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ARPA-E RANGE program $36 million into more EV battery technology projects.

The US Department of Energy (DOE) Advanced Research Projects Agency – Energy (ARPA-E) will award approximately $36 million to 22 projects to develop transformational electric vehicle (EV) energy storage systems using innovative chemistries, architectures and designs. While the research is predominantly targeting highway capable vehicles, any significant advancements in battery performance and/or cost reduction will work its way down to the STOV market eventually. There are already lithium battery pack options available for some STOVs with more expected to hit the market in the next one to two years. Any trickle down technology will likely impact niche markets or particular applications that require better battery performance first. For example, an organization with “green” or sustainability mandates may be willing to pay the price premium for new better performing battery packs.

The projects being funded cover a range of battery technologies including lithium, lead acid, zinc-air, metal hydride and flow batteries. Some of the projects focus on integrating the batteries into the structure of the vehicle itself and/or changing the placement of batteries to increase battery safety in the event of a collision. Others focus on developing solid state lithium battery technology that is non-flammable and safer.  Learn more:  Greencarcongress.com

STOV Market Faces State & Local Regulatory Hurdles

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Clendenin’s mini-truck no longer allowed on town streets and destined for auction.                   Photo credit: Kenny Kemp

A couple of recent stories illustrate the hurdles that STOVs face at the local and state level despite the vehicles being perfect for a given application. In one instance the small town of Clendenin, WV is auctioning off their mini-truck because town officials have determined it is not legal to drive the vehicle on city streets. For several years the town has been using the vehicle to haul debris and carry salt on the narrower and hillier streets where access by full-sized trucks is difficult.  While officials and workers thought the mini-truck was “perfect” for the tasks at hand the state of West Virginia does not allow mini-trucks to be registered. The town council passed an ordinance allowing the vehicle to be used within the city but their local ordinance cannot trump state law. The town is now using a F-150 Ford pick-up which costs $75 to fill-up instead of $20 for the mini-truck which is headed for the auction block.

In the second story a disabled man who had been using a Gator to travel around the roads of the small village of Union, IL was abruptly told he could no longer use the vehicle on city streets after years of doing so. He was told it was a matter of public safety.  While Illinois state law allows non-highway vehicles on roads with speed limits of 30 mph or less, local municipalities must pass an ordinance to do so. Proponents are using a social media campaign to encourage local officials to pass an ordinance.

Learn more:  WVGazette.com   NBCChicago.com

Commentary:  While the trend has been towards more and more municipalities allowing a wider range of STOVs on local streets, the process is very much piecemeal. As illustrated in the second story there are also instances where use is allowed or tolerated by not officially codified by a local ordinance. The issue is local control of streets, where in theory and more than likely in practice, local officials know what is best for their town. On the other hand, statewide regulations allowing STOVs on local low-speed streets would be a big boost to the STOV market and a much more efficient regulatory approach. The use of these vehicles are not likely a priority for many municipalities, even if officials perceived no safety hazard, so the widespread passage of local ordinances will take a long time to enact.

New Florida Law Allows Conversion of LSVs to Golf Car Speeds

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A new Florida law went into effect on July 1, 2013 that allows owners of low-speed vehicles to mechanically convert their vehicles to normal golf car speeds of 20 mph, which lowers their insurance costs. Reportedly thousands of Florida residents are waiting to make the change. The conversion can save an owner between $500 to $800 in insurance costs since a typical golf car can be insured for only $100 compared to $600 to $900 for an LSV. They can also save on the annual LSV registration costs of about $50. The conversion costs about $40.  Learn more:  WUSFNews

Comment:  This law further blurs the line between golf cars and LSVs. While most of the time this hurts the LSV market by making golf cars a more viable substitute, this time the law should help the LSV market by significantly reducing LSV operating costs in a major market for the vehicles. With its many retirement communities geared to golf car or LSV use, Florida has more than 5,000 registered LSVs or golf cars modified to meet LSV requirements.

Final Plan Issued for Imperial Sand Dunes Recreation Area

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Riders enjoying Imperial Sand Dunes Recreation Area with ATVs and UTVS

The Bureau of Land Management (BLM) has issued a final management plan for the Imperial Sand Dunes Recreation Area in California. The plan is good news for off-road riders as the plan will open up 50,000 acres for off-road use within the area. The Dunes are a popular off-road riding area that stretches some 40 miles with an average with of 5 miles.

The plan includes measures to provide recreation opportunities for thousands of visitors by making nearly 180,000 acres (about 84% of the planning area) available for off-highway vehicle (OHV) use, while protecting critical habitat for the threatened Peirson’s Milkvetch by closing the plant’s habitat in the recreation area (about 11,670 acres) to off-highway vehicle use. ….Per the court order, all injunctive relief, including the closures, will remain in effect for 90 days after the date the BLM signs and issues the Record of Decision. … Once the injunction is removed, the BLM will manage the area pursuant to the approved Recreation Area Management Plan.

Learn more:  Holtvilletribune.com

 Comment:  This is good news not only for off-road riders but dealers and manufacturers as well. The more off-road riding opportunities that are available the better it is for the industry as a whole, especially if they can balance recreation and environmental concerns. The West and Southwest US are a particular hot bed for off-road riding in sandy terrain.

Bill to Protect Off-Road Vehicle Use in Johnson Valley Progresses

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The US House of Representatives recently passed a bill that would create the Johnson Valley National Off-Highway Vehicle Recreation Area in California. The bill now moves to the Senate for their consideration. The Navy was attempting to take control of the area to expand the Marine Corps Air Ground Combat Center. If the bill passes the area will be designated specifically for recreational uses, including, but not limited to, OHV use, camping and hiking. Marine Corps activities would be allowed twice a year and couldn’t include any explosives that could be left behind. Learn more:  Americanmotorcyclist.com

Polaris Recalls 2011 Ranger RZR XP 900

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Polaris 2011 Ranger RZR XP being recalled, also comes in white.

Polaris is recalling approximately 4,500 Ranger RZR XP 900 utility vehicles because the firewall behind the driver and passenger seats can overheat and melt, posing a burn hazard to consumers. One incident of a person burning their fingers has been reported. The vehicles are either white or red and were sold between May 2012 and February 2013. Owners should stop using the vehicles and take them to a Polaris dealer for a free repair. The company is also contacting owners directly. Learn more:  CPSC.gov

e-Ride Industries Wants to Deliver Your Mail

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e-Ride Industries EXV4, a LSV compliant utility vehicle

e-Ride Industries of Minnesota wants to provide electric powered fleet vehicles for the US Postal Service for mail delivery. The manufacturer of low speed utility vehicles states that their vehicles would save $0.90 per mile in operational costs compared to the Postal Service’s current gas powered delivery trucks that are such a familiar sight to many. There is also the reduced emissions to consider. A modified version of one e-Ride’s existing models is currently being tested by the agency. Depending on the configuration, initial costs would be between $18,000 and $30,000. With hundreds of thousands of vehicles in service, the potential market is very large for this small manufacturer.  Learn more:  KSTP.com

Comment:  The appeal of this market for electric vehicles is that set delivery routes and  central recharging at the vehicle depot make it easier to determine the range requirements for the battery pack. Shorter routes on roads with speed limits of 35 mph and under would be ideal for this vehicle. The continuous stop and go nature of this vehicle application is also an ideal use of electric power rather than an ICE.  This type of vehicle could make a lot of sense for certain routes but the potential could be limited by vehicle speed and road use restrictions.

Johnson Valley Recreation Area Bill Advances

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A bill that would stop the US Marine Corps from taking over the Johnson Valley off-highway vehicle recreational area has passed the Natural Resources Committee in the US House of Representatives. The bill would designate Johnson Valley as a national off-highway vehicle recreation area but would authorize limited military use of the area. Several years ago the US Department of the Navy had begun the process of taking over nearly 366,000 of public land near San Bernardino to use for live-fire training for the Marines. Included in that acreage is a large portion of the Johnson Valley area. The bill will now move to the full House for consideration.  Learn more:  Motorcycle-USA.com

Indian Government Approves Limited Quadricycle Use

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Bajaj Auto RE60

Bajaj Auto’s Quadricycle the RE60

A special inter-ministerial group in India has approved the use of quadricycles for public transport within city limits. The effort has been spearheaded by Bajaj Auto, the leading three-wheeler manufacturer in India. Quadricycles are similar to low-speed vehicles in the US, although they are more likely to be powered by internal combustion engines and operate at slightly higher speeds.  They are already prevalent in Europe. Similar to LSVs in the US, there has been some objection to the quadricycles because they do not have to meet the same safety standards as higher speed autos but share the same roads. In India some of this criticism has come from the manufacturers of higher speed autos. Bajaj Auto management reports that they will beging production of their RE60 quadricycle very soon.

Comment:  This may be a potential win for Polaris in the long term. They recently purchased a leading quadricycle manufacturer in Europe, Aixam Mega, and have also entered the Indian market with their UTVs and GEM vehicles. A quadricycle product line could be a nice addition for their dealer network, especially if their use is allowed to expand beyond the current limitations.

Another consideration is whether this is the beginning of a trend towards wider quadricycle use around the world. And if it is, does it put pressure on US regulatory bodies to approve the use of medium speed vehicles and/or wider use of low speed vehicles?

Learn more:  Economictimes.com

Polaris to Compete for Military Contracts for Fire & Emergency Vehicle

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Typical Polaris Ranger emergency vehicle used by a municipal fire department

The Defense Department recently awarded a number of contracts including a $382.5 million contract for fire and emergency vehicles for the Army, Navy, Air Force, Marine Corps, and federal civilian agencies. The contract is a “maximum value, fixed-price with economic-price-adjustment contract” which gives the Polaris Defense subsidiary the right to compete with other vendors for various orders under the larger contract.  Polaris will only get the portion of the total contract for which it wins individual orders from the various agencies. The completion date for the contract is May 17, 2018.

Polaris management has targeted military sales a key strategic driver for future revenue growth.  According to the company, they currently sell about $50 million of products, including ATVs and UTVs, to military customers and is targeting $200 million in annual revenues. Polaris was also one of the first vendors to offer a six wheeled UTV that has been popular with Bureau of Land Management fire units which fight wild fires. Learn more:  Fool.com