South Korea Opens Roads To NEVS

In line with a previous announcement to target the development of electric vehicles, the Ministry Land, Transport and Maritime Affairs posted revisions to road use regulations that will allow for the operation of NEVs on public roads.

…NEVs, electric vehicles with less than 60 kilometers per hour maximum speed that weigh less than 1,100 kilograms, will be allowed to run on roads designated by the mayors of local administrative authorities…

In addition, NEV crash tests will be conducted at 40 km/hr instead of the standard 48.3 km/hr.  Learn more:  Koreaherald.co.kr

Arizona Promising Stronger Enforcement of OHV Laws

The Arizona Game and Fish Department is increasing their enforcement efforts to ensure compliance with off-highway vehicle(OHV) laws.  In Arizona OHVs are required to have decals but the department reports that less than 25% of OHVs have them.  The annual decals cost $25 and are part of a program that started in January, 2009.  The program covers most ATVs, utility vehicles, dirt bikes and some sand rails and revenues pay for information booklets and riding maps as well as clean up and restoration efforts.  Learn more:  KTAR.com

Illinois LSV Goes Into Effect

On January 1 a new LSV law went into effect in Illinois.  There are two basic parts to the law:  first LSVs will now have to be titled and registered with the state; the second and more interesting part is that LSVs will be allowed to travel on any roads with posted speed limites of 30 mph or less unless specifically prohibited by a municipality.

This essentially creates LSV road access as the default policy.  I believe this is the first state to do so.  Other states have allowed similar access but with the added step that municipalities had to pass ordinances to explicitly allow LSV access.  This requires a certain level of initiative and interest by local officials to write and pass the ordinances.  The law should provide a boost to LSV sales in Illinois and may spur other states to adopt similar legislation. – Marc Cesare

Learn more:  www.connecttristates.com

CPSC Extends Comment Period For Recreational Offhighway Vehicles

The Consumer Products Safety Commission is extending its comment period for 75 days related to the advance notice of proposed rulemaking for Recreational OffHighway Vehicles (ROVs).  The extension comes at the request of Honda, John Deere, Kawasaki and the Recreational OffHighway Vehicle Association.  The original deadline was December 28, 2009 and the new deadline is now March 15, 2010.  Learn more:  Federalregister.com

Oklahoma Supreme Court Rules On Electric Vehicle Tax Credit

Oklahoma’s Supreme Court recently ruled that the Garfield County District Court, which had ruled in favor of LSV dealers and customers in October, did not have jurisdiction in the case and vacated that court’s order.  For dealers and customers this means that the Oklahoma Tax Commission’s previous letter rulings on qualified vehicles now apply again.  Some vehicles purchased with the understanding that they would be eligible for the state tax credit are no longer considered eligible.

It appears that the bulk of the rulings by the commission are not in favor of the manufacturers.  For example, the Badboy Buggie XT LSV, the Stealth Patriot LSV, the Fairplay EVE, Fairplay Goat, American Custom Golfcars Hummers H3, American Custom Golfcars Escalade, American Custom Golfcars Roadster Limo and Titan UTV Hunting Buggy do not qualify.  Per the commission they do not qualify because…

The term ‘qualified electric motor vehicle property’ shall not apply to vehicles known as ‘golf carts,’ ‘go-carts’ and other motor vehicles which are manufactured principally for use off the streets and highways.

Some of the vehicles that do qualify include:

  • Most but not all Bigman models
  • Club Car Carryall 2 & 6 LSVs
  • Columbia ParCar Mega Truck models and Summit models with enclosures
  • All the GEM models
  • A few of the Star models
  • Wheego Whip

The complete set of ruling letters for twenty-three manufacturers can be found hereLearn more:  EdmondSun.com

Comment: When I first spoke with the Oklahoma Tax Commission after their initial ruling they  talked about trying to clarify the law and that revenue concerns were not the issue.  When they appealed the district court’s ruling they noted that the tax credit could cost the state upwards of $40 million. In my opinion they are trying to avoid losing revenue from tax credits. It would be interesting to see, in detail, how they are deciding which vehicles qualify and which ones don’t. – Marc Cesare

Efficiency & Renewable Energy Goals Drive LSV Sales

A recent story about the energy plans of a Wisconsin town highlight a continuing trend in the STOV market.  Whether it is municipalities, universities or federal agencies, the drive to more efficiently use energy and/or be more “green” is increasing the demand for electric powered low speed vehicles.  In this case, the replacement of fleet vehicles with NEVs is one of a number of initiatives that the town of Oconomowoc is using to reduce their energy consumption.  Learn more:  istockanalyst.com

More Bad Boy Buggy News

Bad Boy Enterprises just announced that three of their vehicles, the Classic, XT and Stretch, are now qualified by the IRS as street-legal LSVs.  Each vehicle is eligible for a federal tax credit of $5,590.  Management reports that tax credit driven sales have, in part, caused them to increase their projected annual sales from $17 million to $20 million.  In addition, they report a 1,000 orders for their new XT vehicle and a positive response from their five-store market test with Bass Pro shops.  The retailer wants to roll-out the program with an additional 15 stores in the next three months.  Bad Boy is also talking with retailer Cabela’s about selling their vehicles.  Learn more:  Natchezdemocrat.com

Club Car Announces First Low-Speed Passenger Vehicle

From Club Car’s Press Release

Club Car announced that its first street-legal low-speed passenger vehicle will begin shipping this week, giving businesses and consumers time to take advantage of federal tax credits that amount to nearly 50 percent of the suggested retail price for the new Villager 2+2.
The zero-emission LSV from Augusta, Ga.-based Club Car carries up to four passengers and builds on the Villager’s history of providing dependable, energy-efficient transportation for thousands of businesses and consumers worldwide.
Customers have until the end of the year to take advantage of a federal tax credit – based on the Energy Improvement and Extension Act of 2008. The credit is equal to the sum of the base credit of $2,500 plus $417 for each kilowat hour of battery capacity in excess of four kilowat hours. For those who qualify, the credit would amount to $4,168, almost half the base price of the $8,876 Villager 2+2. Some states have additional tax credits that can lower the purchase price further. The credit amount is scheduled to reduce to a minimum of 10 percent of the MSRP at the end of 2009.
LSVs are the fastest-growing segment in what is known as the small task-oriented vehicle (STOV) market, increasing by nearly 50 percent in the last year, according to International Market Solutions, a NY-based research firm.
According to a study conducted by Green Car Institute, a nonprofit California research corporation, consumers and businesses are using LSVs instead of cars or trucks with gasoline internal combustion engines for daily short-distance trips and for cargo transport. In the same survey, LSV owners said they purchased the nimble street-legal vehicles because they offer an environmentally friendly mode of travel, save on gasoline and fit their lifestyle and business needs for economical transportation.
The four-wheeled motor vehicles weigh less than 3,000 pounds and have a top speed between 20 and 25 mph. Currently LSVs are allowed in 47 states and the District of Columbia on many roads where the posted speed limit is 35 mph or slower.
In accordance with LSV requirements, Club Car’s Villager 2+2 features headlights, taillights, brake lights, turn signals and a horn. In addition, a wrap-around impact-resistant bumper system and an onboard charger are standard. Colors include white (standard), beige and black (optional) and diamond white pearl, titanium silver, and desert sand (premium). Option packages are available.
Military bases, college campuses, residential neighborhoods and urban environments with congested driving and parking conditions are among the target markets for the new LSV, according to Robert McElreath, Club Car’s vice president of global marketing, who notes the vehicles’ wide-ranging benefits.
“Even when the purchase of an LSV does  not  replace a personal or commercial vehicle, it will replace many of the miles a vehicle with an internal combustion engine is used for, and that’s going to translate to fuel and energy savings as well as convenience,” said McElreath.
Club Car vehicles are sold through authorized dealers. To locate a dealer, go to clubcar.com and click on Dealer Locator.
Club Car, which is the world’s largest producer of four-wheel, small task-oriented electric vehicles, was one of the first manufacturers in the LSV market, partnering with General Motors in 2003 as part of a test program. In 2008 Club Car introduced LSV versions of its Carryall 2 and Carryall 6 utility vehicles aimed at commercial and government markets. The latest Villager model has been restyled to appeal to commercial and consumer users with a priority on comfort, convenience and efficiency.
Club Car’s more than 85 base models of small task-oriented vehicles serve thousands of commercial and consumer applications worldwide through more than 400 commercial and industrial utility vehicle dealers.

More about Club Car

Oklahoma LSV Tax Credit Update

Yesterday a county judge in Oklahoma ruled in favor of vehicle purchasers, declaring that they could receive the state tax credit for the LSVs that they purchased.  The lawsuit was brought by Ada Electric Cars and H20 Sports Unlimited and other dealers joined as well including GKU Electric Vehicles LLC, Heartland Outdoors LLC, Pat’s Archery Inc., and Xtreme Cycle and ATV LLC.

The judge’s order states low-speed vehicles sold by manufacturers Tomberlin, Ruff & Tuff, Stealth, Fairplay and Bad Boy Buggie qualify for a state tax credit.  The order also includes, “any other low speed vehicles similarly equipped as those described above qualify for … ‘ the state tax credit. Specific models noted in the order include Tomberlin E-Merge E-2, Tomberlin E-Merge E-4, Tomberlin Anvil, Tomberlin E-Merge Classic, Ruff & Tuff NEV2, Ruff & Tuff NEV4, Ruff & Tuff Cruiser EV2, Ruff & Tuff Cruiser LX2, Ruff & Tuff Cruiser LX4, Ruff & Tuff Hunter 4×4, Stealth Patriot LSV, Stealth Patriot LSV 4 X 4, Fairplay EVE, Fairplay Goat and Bad Boy Buggie XT LSV.

The Oklahoma State Tax Commission responded to the announcement by stating that it would appeal the ruling.  The commission stated that the tax credits could cost the state more $40 million.  If this is true, at the high end an average tax credit of $8,000 per vehicle translates into 5,000 vehicles sold in the state and at the low end an average tax credit $4,000 per vehicle translates into 10,000 vehicles sold in the state. In either case the figures represent an enormous boost to the LSV market. – Marc Cesare

Learn more:  Enidnews.com Stilwater-newspress.com

Enidnews.com

CPSC Announces Proposed Rules For Recreational Off-Road Vehicles

The U.S. Consumer Product Safety Commission (CPSC) has published an advance notice of proposed rulemaking (ANPR) to address safety hazards associated with Recreational Off-road Vehicles (ROVs).

CPSC staff’s preliminary evaluations indicated that the vehicles may exhibit inadequate lateral stability, undesirable steering characteristics, and inadequate occupant protection during a rollover crash.

The review of ROVs, sometimes called utility vehicles or side by sides, by the CPSC was initiated by numerous incidents related to the Yamaha Rhino including a number of deaths. (CPSC distinguishes between ROVs and utility vehicles with the former operating at speeds over 30 mph and the latter under 30 mph) The CPSC conducted tests from November 2008 to January 2009.

The ROV manufactuers, through the Recreational Off-Highway Vehicle Association (ROHVA), proposed their own standard in December 2008 but this was rejected by the CPSC, as they found preliminarily…

Based on the continuing deaths and injuries involving ROVs and a review of the draft requirements currently proposed by the ROHVA, CPSC staff believes that the proposed voluntary standard will not adequately address the deaths and injuries associated with ROV rollovers and collisions. Additionally, there are many safety features or characteristics that can be incorporated on ROVs to make them more stable and safer to use.

The CPSC identified three key areas of ROV design that impact safety:  static stability factor (SSF),  vehicle handling and occupant  retention and protection.  One change the CPSC has talked about with the ROHVA is having vehicles meet a specific SSF value.  Learn more:  CPSC.gov

CPSC Memorandum