Kentucky Venture Gets ZAPped

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According to a number of reports(Lexington Herald-Leader, earth2tech, autobloggreen), the plans to build ZAP vehicles in Kentucky through a joint venture with Integrity Manufacturing have come to a halt. The company’s CEO Randy Waldman points to the loss of potential investor GE Capital as the primary reason. Apparently GE Capital was to provide $125 million in funding through a sale of bonds (although the Earth2tech story disputes this) but has pulled out of the deal. Integrity Manufacturing is now trying to find money in a $200 billion Department of Energy fund targeting energy projects. An alternative being mentioned by management is to convince another state to provide funding or a manufacturing facility.

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.

Dynasty Looking To Offer Lithium Battery Pack

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In a recent conversation with Dynasty Electric Vehicles General Manager Danny Epp about the plug-in electric vehicle tax credit he revealed that Dynasty is looking to have a lithium battery pack option available for mid-2009. The company is currently talking to several China based producers with the expectation that the battery packs will cost around $4,000, about twice as much as their maintenance free battery option. If the vehicles qualify for the recently passed $2,500 plug-in electric vehicle tax credit then vehicles with the lithium battery pack option would be available at the same or slightly lower price that customers are currently paying for vehicles with the maintenance free battery pack option. Mr. Epp stated that the lithium pack will have twice the life of the lead acid battery pack, can charge faster without damage and has more range because it can discharge to a lower level. The size of the pack is also smaller so you can have the same power in a smaller space or add additional cells, although at an additional cost. No changes have to made in regard to where the battery pack fits in the vehicle. Dynasty is trying to create the best value for the customer by balancing the trade-off between more cost for more battery power filling the same space or less cost for the same power at less weight and less volume.

We also started talking about changes in the current market. Epp reported that despite the recession sales had been increasing and attributed the increase to both higher fuel costs and more awareness of the vehicles. He also noted that his customer type had changed from relatively lower income environmentalists to higher income individuals looking to make a statement, especially if they have larger cars. The vehicles can almost be viewed as a “personal offset”. Epp himself views the vehicles as an “appliance for the house” and tries to sell them from that perspective. Most of the companies sales are in the US and they currently have twelve dealers. For more on Dynasty.

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

Rough Terrain UTVs: Is Electric Power Making Inroads?

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Electric ATVs to hit the market – Potentially an indicator of electric power making further inroads into rough terrain utility vehicles, a number of electric ATVs are expected to hit the market in the near future. Barefoot Motors is coming out with their Model One and All Electric Vehicles Unlimited signed an agreement to distribute three electric ATV models under the brand GEO in North and South America. They are manufactured in Italy.