NEW YORK STATE
OFFICE OF THE STATE COMPTROLLER
H. Carl McCall
STATE COMPTROLLER
CLEAN-FUELED VEHICLE COUNCIL
STAFF STUDY: ACQUISITION, USE AND
PROMOTION OF ELECTRIC VEHICLES BY
NEW YORK STATE AGENCIES
2000-D-2
DIVISION OF MANAGEMENT AUDIT AND
STATE FINANCIAL SERVICES
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Office of the State Comptroller
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H. Carl McCall
STATE COMPTROLLER
Report 2000-D-2
Mr. Kenneth J. Ringler, Jr.
Chair
Clean-Fueled Vehicle Council
Corning Tower, 3rd Floor
Empire State Plaza
Albany, NY 12242
Dear Mr. Ringler:
The following is our study addressing the acquisition, use and promotion of electric vehicles by
New York State agencies.
This study was performed pursuant to the State Comptroller’s authority as set forth in Article V,
Section 1 of the State Constitution and Article II, Section 8 of the State Financial Law. Major
contributors to this report are listed in Appendix A.
May 31, 2001
Division of Management Audit and State Financial Services
A.E. SMITH STATE OFFICE BUILDING ♦ ALBANY, NEW YORK 12236
123 WILLIAM STREET ♦ NEW YORK, NEW YORK 10038
Executive Summary
Clean-Fueled Vehicle Council
Staff Study: Acquisition, Use and Promotion of
Electric Vehicles by New York State Agencies
Scope of Study
According to State regulations, beginning in the 2003 new car model year, at
least 10 percent of the vehicles sold in New York by each of the major
automakers must be powered by fuels emitting no pollutants. With current
technologies, the only such zero emission fuel is electricity. These regulations
were adopted in response to Federal requirements meant to reduce air pollution
as well as America’s dependence on imported oil. As part of New York
State’s efforts to meet these Federal requirements, a task force was created
to develop a strategy for increasing the use of clean-fueled vehicles in New
York State. In January 1998, the task force made recommendations for adding
such vehicles to the State’s fleet and for promoting the use of such vehicles in
the State. The Clean-Fueled Vehicle Council (Council), composed of
representatives from various State agencies and public authorities, was created
to implement these recommendations.
Our study addressed the following questions about the Council’s coordination
of electric vehicle acquisition by certain State agencies, and the promotion of
such vehicle acquisition in New York State, for the period September 1, 1998
through December 31, 1999:
Observations and
Conclusions of
Study
!
What has been the experience of these agencies in acquiring and
operating electric vehicles?
!
How much progress has been made in meeting the requirement that at
least 10 percent of the vehicles sold by major automakers in 2003 be
powered by zero emission fuel?
!
How do electric vehicle acquisition efforts in New York State compare
with those in California, Connecticut, Massachusetts, New Jersey,
Pennsylvania and Vermont?
We conclude that in light of difficulties encountered in both the acquisition and
use of the vehicles, the 11 State agencies we reviewed have made a good faith
effort to acquire and use electric vehicles. However, additional actions can be
taken to improve the agencies’ acquisition and use of the vehicles. In
particular, more needs to be done to promote the use of electric vehicles to
businesses and the driving public. Without a dramatic increase in sales over the
next three years, the 10-percent sales requirement will not be met by the seven
major automakers (i.e., those selling more than 35,000 vehicles in the State
during the year) in 2003. We also determined that New York has been less
successful than California, but more successful than the other five states, in
promoting the use of electric vehicles.
According to a goal established by the Council, 11 of the 12 State agencies
belonging to the Council were to have acquired a combined total of 300 electric
vehicles by the end of 1999. We found these agencies acquired only 106 electric
vehicles, mainly because automakers limited the number of vehicles sold in
New York State. According to State officials, electric vehicles are less
available in the Northeast because of manufacturers’ concern over performance
in cold weather. (See pp. 3-5)
State agency officials told us that, while their electric vehicles provide a quiet
ride with smooth handling, they are difficult to integrate into standard fleet
operations because they must be recharged frequently and can transport only a
limited payload. As a result, the vehicles are generally assigned to shortdistance niche operations (such as shuttles between offices), activities for which
the agencies usually have little demand. The use of these vehicles is further
limited because few charging stations are available, some types of charging
stations cannot be used by some types of vehicles, and recharging vehicles can
take several hours. They also told us the vehicles do not have sufficient
acceleration to merge with highway traffic, and can be difficult to get serviced
or repaired. Also, State agencies use few of the vehicles in the New York City
area, even though low air quality levels in that area subject the State to potential
Federal penalties. (See pp. 7-8)
According to information reported to the U.S. Department of Energy for 1998
and 1999, California acquired more electric vehicles, and installed more charging
stations than New York or any of the other five neighboring states addressed by
our study. Because California has an agreement with the largest automakers to
purchase their electric vehicles and develop the infrastructure needed, it may be
better supplied with electric vehicles than other states. New York has
demonstration projects similar to those in the other states. (See pp. 14-17)
To enhance the availability of electric vehicles in New York, we present several
issues to be considered by the Council members. (See pp. 19-20)
Comments of
Officials
A draft copy of the matters presented in this report were provided to officials
from the Clean-Fueled Vehicle Council, the Departments of Environmental
Conservation and Transportation, and the Office of General Services for their
review and comment. Officials from the Council, the Office of General
Services and the Department of Transportation declined to respond to our
report. Department of Environmental Conservation officials told us that they
were going to submit a response, but did not.
Contents
Introduction
Electric Vehicles in
New York State
Electric Vehicles in
Other States
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Scope, Objectives and Methodology of Study . . . . . . . . . . . . . . . . . 2
Response of Officials to Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Vehicle Acquisition . .
Vehicle Operation . . .
Charging Stations . . . .
Incentives . . . . . . . .
Demonstration Projects
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. 3
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10
10
Vehicle Acquisition . .
Charging Stations . . . .
Incentives . . . . . . . .
Demonstration Projects
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13
15
16
16
Issues To Be
Considered
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Exhibit A
Members of the Clean-Fueled Vehicle Council
Exhibit B
Web Sites and Other Resources for Information About Electric Vehicles
Appendix A
Major Contributors to This Report
Introduction
Background
The 1990 Federal Clean Air Act Amendments include requirements that a
certain percentage of the vehicles purchased in New York State by private
businesses and government agencies with vehicle fleets of a certain size must
be powered by fuels that emit fewer pollutants than standard fuels (such fuels
include reformulated gasoline, clean diesel fuel, and non-petroleum fuels).
In addition, the 1992 Federal Energy Policy Act (also known as EPACT),
intended to reduce America’s dependence on imported petroleum, also
requires that some of the vehicles purchased by many of these businesses and
agencies must be powered by alternative (i.e., non-petroleum) fuels such as
natural gas, propane and electricity.
As part of the actions taken by New York State officials to meet these
Federal requirements, regulations were adopted to encourage the sale of
vehicles powered by fuels emitting no pollutants. With current technologies,
the only such zero emission fuel is electricity. According to these
regulations, beginning in the 2003 new car model year, at least 10 percent of
the vehicles sold in New York by each major vehicle manufacturer (i.e.,
those selling more than 35,000 vehicles in the State during the year) must be
powered by zero emission fuel. A total of seven manufacturers are affected
by these regulations: Chrysler, Ford, General Motors, Honda, Mazda,
Nissan and Toyota.
In addition, as part of New York State’s 1996 Clean Water/Clean Air Bond
Act, an interagency task force was created to develop a strategy for
increasing the use of clean-fueled vehicles by State agencies and by the other
vehicle users in the State. The task force, included representatives from the
Office of General Services, the Departments of Environmental Conservation
and Motor Vehicles, and the New York State Energy Research and
Development Authority, who worked closely with representatives of the
Division of the Budget in developing the strategy. In January 1998, the task
force issued a report (New York State’s Strategy for the Acquisition and
Utilization of Clean-Fueled Vehicles for the New York State Fleet) that made
recommendations for adding clean-fueled vehicles to the State’s fleet and for
promoting the use of such vehicles in the State. To help implement these
recommendations, the report proposed the creation of a working group
composed of representatives from appropriate State agencies and public
authorities (i.e., those most likely to use clean-fueled vehicles as well as
those with expertise related to such vehicles).
In accordance with the task force’s proposal, the Clean-Fueled Vehicle
Council (Council) was created in 1998. The 18 members of the Council are
listed in Exhibit A. The Council is responsible for revising, refining and
implementing the strategy developed by the task force. As part of this
responsibility, the Council coordinates the efforts of State agencies and public
authorities to acquire alternative-fuel vehicles, and collects data on the
operation of such vehicles. The Council is chaired by the Commissioner of
the Office of General Services.
Scope, Objectives
and Methodology of
Study
We reviewed the Council’s coordination of electric vehicle acquisition by
certain State agencies, as well as the Council’s promotion of such vehicle
acquisition by other entities in New York State, for the period September 1,
1998 through December 31, 1999. The objectives of our study were to (1)
obtain information about the experiences of certain State agencies in
acquiring and operating electric vehicles, (2) determine how much progress
has been made in meeting the State regulations requiring that at least 10
percent of the vehicles sold by major manufacturers in 2003 be powered by
zero emission fuel, and (3) compare the electric vehicle acquisition efforts
and experiences in New York State with those in other states. To
accomplish our objectives, we interviewed officials and staff at the Council,
the Departments of Environmental Conservation and Transportation, and the
Office of General Services. We also obtained information from the U.S.
Department of Energy, the Electric Vehicle Association of the Americas, the
California Air Resources Board, and other entities responsible for collecting
data on electric vehicles (see Exhibit B for a listing of web sites and other
resources for information about electric vehicles). We did not verify the
accuracy of this information.
Response of
Officials to Study
A draft copy of this study was provided to the Clean-fueled Vehicle Council,
the Office of General Services, and the Departments of Environmental
Conservation and Transportation for their review and comment. Officials
from the Council, the Office of General Services and the Department of
Transportation declined to respond to our report. Although Department of
Environmental Conservation officials told that they would respond, they did
not.
Within 90 days after the final release of this study, we request the Council,
the Commissioners of the Departments of Environmental Conservation and
Transportation, and the Office of General Services to report to the Governor,
the State Comptroller, and the leaders of the Legislature and fiscal
committees, advising what actions were taken in response to the observations
made and issues raised in the study.
2
Electric Vehicles in New York State
We found that about 100 electric vehicles have been acquired by New York
State agencies. However, the agencies we reviewed were not able to
acquire as many vehicles as was intended by the Council, mainly because the
manufacturers limited the number of vehicles sold in the State. In addition,
even though tax credits and other incentives are offered by New York State
to encourage the sale of electric vehicles, the number of vehicles sold to fleet
operators in the State has been low. If these sales do not increase dramatically, the 10 percent sales level required by the State in 2003 will not be
achieved. We also found that a number of problems have been encountered
by State agencies using electric vehicles; for example, the vehicles must be
recharged frequently, can take several hours to recharge, do not operate well
in cold weather, and can be difficult to get serviced or repaired.
Vehicle Acquisition
During our study, the Council was composed of representatives from twelve
State agencies and five public authorities. (Subsequent to our study, the
Department of Agriculture and Markets joined the Council.) In May 1998,
the Council set the following vehicle acquisition goals for its members:
!
11 of the 12 State agencies (all but the State University of New
York) were to acquire (by purchase or lease) a combined total of 300
alternative-fuel vehicles a year, and
!
the five public authorities and the State University were to acquire
(by purchase or lease) a combined total of 200 alternative-fuel
vehicles a year.
Half of the 500 alternative-fuel vehicles to be acquired each year were to be
powered by electricity, and half were to be powered by other non-petroleum
fuels, such as natural gas or propane. Our study focused on the acquisitions
to be made by the 11 State agencies. These agencies were to acquire a
combined total of 150 electric vehicles a year, an ambitious goal, considering
that the agencies owned a combined total of only seven electric vehicles when
the goal was set. The combined goal was divided among the 11 agencies in
proportion to past vehicle acquisitions, but because two agencies (Division of
the Budget and the Governor’s Office of Employee Relations) acquired
relatively few vehicles, their portion of the goal was zero.
The price of an electric vehicle is much higher than the price of a comparable vehicle powered by gasoline. For example, according to the State
contracts in effect in November 1998, the electric vehicles available cost
between $7,400 and $8,750 more than their gasoline-powered counterparts.
However, New York’s 1996 Clean Water/Clean Air Bond Act makes funds
3
available to State agencies to cover the additional cost of these vehicles, and
within six months of receiving their acquisition goal, the 17 Council members
had committed to acquire a combined total of at least 143 electric vehicles
during the 1999 car model year. Of the 11 agencies that we focused our study
on, nine made commitments to acquire 117 electric vehicles during 1999.
While the agencies were committed to acquiring electric vehicles, the
vehicles themselves proved difficult to acquire because they were not readily
available. General Motors had the first commercially-available electric
vehicle on the market in December 1996, and Mazda was the only major
manufacturer operating in New York that did not have a commerciallyavailable electric vehicle by the 1999 model year. However, only four of the
nine electric vehicles commercially available in the 1999 model year were
available on State contract (the Chrysler EPIC, Ford Ranger EV, Solectria
Force, and Toyota RAV-4), and some of them were only available in limited
quantities. For example, Chrysler did not accept any orders until late in the
1999 model year due to engineering problems with the EPIC, and Toyota
limited orders for its RAV-4 to 25 vehicles available in the New York City
area only. As a result of these limitations, only four of the 11 State agencies
were able to order a combined total of only 55 electric vehicles during the
1999 model year.
Agency officials told us that they experienced delays of up to five months in
receiving the vehicles after they were ordered. For example, Department
of Transportation officials reported a three-month delay in receiving 11
vehicles, and Department of Environmental Conservation officials told us they
had to wait three months after ordering 12 vehicles and five months after
ordering two vehicles. In addition, as of December 31, 1999, the Office of
General Services had received only eight of the ten electric vehicles that
were ordered in November 1998; the other two vehicles were still at the
dealership, waiting for parts. As shown in the following table, by the end of
1999, the 11 State agencies that were to have acquired a total of 300 electric
vehicles had acquired only 106 electric vehicles:
4
Electric Vehicles Acquired by the 11 State Agencies
as of December 31, 1999
Department of Correctional Services
5
Department of Environmental Conservation
16
Department of Motor Vehicles
2
Department of Transportation
15
Division of the Budget
1
0
Governor's Office of Employee Relations
1
0
Office of Children and Family Services
11
Office of General Services
11
Office of Mental Health
27
Office of Mental Retardation
13
Office of Parks, Recreation and Historic Preservation
Total
2
6
106
1
Agency not expected to acquire any electric vehicles due to small fleet size.
2
Includes eight Solectrias. As Solectria does not sell enough vehicles in New York
to qualify as a major manufacturer, its sales are not subject to the 10 percent zero
emission sales requirement.
Moreover, the availability of the vehicles is not likely to increase during
calendar year 2000, as according to purchasing officials at the Office of
General Services, only one electric vehicle model (the Ford Ranger) is
available under the current State contract, and Ford has committed to make
no more than 50 vehicles available under this contract. This is down from the
four electric vehicles available on State contract for model year 1998, and the
five available for model year 1999. Additionally, in March 2000, one
manufacturer recalled some of the vehicles in the State’s fleet. According
to Office of General Services officials, few electric vehicles are available in
New York State and elsewhere in the Northeast because the manufacturers
are concerned about the vehicle’s performance in cold weather. They also
told us that the electric vehicles available to the State has continued to decline
during calendar year 2000. As discussed in the following section of this
report, because of the performance problems, some State agencies are not
planning to acquire any additional electric vehicles. Therefore, it appears that
the 11 agencies will not meet the goal of acquiring 150 electric vehicles in
2000 either.
5
We obtained information from the U.S. Department of Energy (DOE) on the
number of electric vehicles purchased in New York State by all fleet
operators subject to the vehicle purchasing requirements in the 1992 Federal
Energy Policy Act (Act). Such fleet operators are required by the Act to
report this information to DOE. While additional electric vehicles may have
been purchased by individuals or fleet operators not subject to the Act, the
number of such vehicles is not likely to be large. According to the information reported to DOE during 1998 and 1999, 214 electric vehicles were
purchased in New York State by the private and government fleet operators
subject to the reporting requirements (including the 106 vehicles acquired by
the 11 State agencies). If at least 10 percent of the vehicles sold in New
York in 2003 by the seven major manufacturers are to be powered by
electricity, as is required by State regulations, an estimated 40,000 to 50,000
electric vehicles will have to be purchased in New York during that year.
Office of General Services (OGS) officials told us they believe the 10 percent
sales requirement cannot be achieved by 2003.
We note that several manufacturers (Honda and Toyota) offer a hybrid
vehicle powered by gasoline and electricity to consumers across the nation.
This vehicle can be driven greater distances between refueling than a vehicle
powered solely by electricity (vehicles powered solely by electricity have a
limited range because they must be recharged frequently), which may make
it more appealing. Such a vehicle would help the State meet some of its
goals, as it would emit fewer pollutants and use less petroleum than vehicles
powered solely by gasoline, while users gain the experience of operating a
vehicle powered by electricity. An official at the Department of Transportation told us that, because of their greater range, the Department would find
hybrid vehicles more appealing than those powered solely by electricity.
Because a hybrid vehicle emits some pollutants, it cannot be classified as a
zero emission vehicle, and therefore the sales of such vehicles cannot be
counted when determining whether the 10 percent zero emission sales
requirement has been met. In light of the many advantages of such hybrid
vehicles, we question whether consideration should be given to adding such
vehicles to the State’s fleet. We note that hybrid vehicles powered by
electricity and a non-petroleum fuel, such as compressed natural gas, can be
counted on a pro-rated basis when determining whether the 10 percent sales
requirement has been met. OGS officials told us that they have had
discussions with automobile manufacturers regarding the production of
alternative fueled /electric hybrid vehicles. OGS believes that such vehicles
would help further their efforts to meet the standards. They also told us they
now have a gasoline/electric hybrid (Toyota Prius) they are testing and are
planning to let a contract for gasoline electric hybrids even though they do not
count toward the 10 percent requirement.
6
We note that, when the Council’s goal for State agency electric vehicle
acquisitions could not be met actions were taken by the Council to ensure that
additional purchases were made of vehicles powered by other types of
alternative fuel (such as compressed natural gas). Such additional purchases
were needed for the State to meet the vehicle purchasing requirements
contained in the 1992 Federal Energy Policy Act. Council officials believe
that the best approach is to continue to obtain and test electric vehicles as they
become available.
Vehicle Operation
The State fleet has electric vehicles from four different auto manufacturers
(Chrysler, Ford, General Motors and Toyota) and one company that converts
gasoline-powered vehicles to vehicles powered by electricity (Solectria).
Each model behaves differently, depending on the number and type of
batteries, battery management systems, and other options. Despite these
differences, some general statements can be made about the performance of
the electric vehicles at the three State agencies we visited.
Officials at the three agencies told us that, while the vehicles provide a quiet
ride with smooth handling, they are difficult to integrate into standard fleet
operations because of the limitations on their range and payload. The range
of an electric vehicle varies depending on the particular model, the type of
battery used and the weather. Lead acid batteries provide less distance than
nickel-metal hydride batteries (NiMH), and battery performance is reduced
in cold weather. Department of Transportation officials told us lead-acid
batteries get about 70 miles on a full charge at 72 degrees Fahrenheit, and
lose one mile in range per degree below that. NiMH batteries get about 100
miles on a full charge, and lose about 10 to 15 percent of this range in cold
weather. Department of Transportation officials told us their vehicles with
NiMH batteries can go between 80 and 100 miles. In contrast, at the
Department of Environmental Conservation officials report a range of less
than 30 miles for their vehicles with lead acid batteries during cold weather.
The payload of an electric vehicle is limited because the engine provides less
power and the batteries fill most of the space usually available for cargo.
As a result of these limitations, the electric vehicles at these three agencies
are generally assigned to short-distance niche operations, such as local
courier services and shuttles between offices. However, the agencies usually
have little demand for these types of activities. For example, officials at the
Department of Environmental Conservation told us that their fleet tends to be
used in remote areas of the State requiring travel over long distances, and the
range of electric vehicles is too limited for such use. They also told us that
their electric vehicles do not have sufficient acceleration to merge with
highway traffic, and if a driver accelerates suddenly to get up to highway
speed, the batteries are used up sooner. As a result, the agency staff are
concerned about the safety of the vehicles. In addition, according to
Department officials, the staff are so concerned about the batteries draining
7
before they get to their destination, that they refrain from using vehicle
accessories such as the heater and windshield wipers. Consequently, the
Department of Environmental Conservation assigns most of its electric
vehicles to the Albany area for use between different offices. During the
summer months, the Department reassigns some of the vehicles to
campgrounds, where they work well.
The location where electric vehicles are used is significant, because the main
reason for the vehicles is to improve the air quality in the State. The only
area of the State significantly out of compliance with Federal air quality
standards (and thus subject to potential Federal penalties) is New York City.
However, few of the electric vehicles acquired by 9 of the 11 State agencies
are used in the New York City area, as the agencies tend to distribute the
vehicles evenly among their regional offices to maximize exposure to the
vehicles. It should also be noted that, according to the task force report, only
about 15 percent of the entire State fleet is located in New York City and
Long Island. About 16 percent of the fleet is located in the Albany area and
the remaining 69 percent is located throughout the rest of the State.
The reliability of the electric vehicles varied at the three agencies we visited.
Officials at the Department of Transportation told us that some of their
vehicles have had no breakdowns, while other vehicles were forced out of
service due to the limited availability of parts. Overall, however, Department officials said they received excellent service on their vehicles. In
contrast, the Department of Environmental Conservation has experienced
significant repair problems with some of its electric vehicles. For example,
two of its vehicles were in the shop for more than two months, waiting for
a part, and at the time of our visit, five of the Department’s 16 electric
vehicles were in the shop for repairs. Some of the Department’s electric
vehicles have been out of service for as long as six weeks due to a lack of
trained technicians.
The lack of available replacement parts and trained technicians is partly due
to the low number of electric vehicles on the road. The Department of
Transportation has obtained training for its own mechanics, and makes these
mechanics available to assist the mechanics at other agencies. Department
officials told us they still experience delays in obtaining parts, due to the
small number of parts produced.
Charging Stations
8
To recharge their batteries, electric vehicles require a charging station,
which consists of a charger and a power source. The charger may be part
of the vehicle or may be part of the charging station. The type of power
source needed depends on the charger, and ranges from a standard 110 volt
source to a three-phase 220 volt source. Some charging “stations” are little
more than a dedicated power outlet of the appropriate voltage. Some models
of electric vehicles include the charger in the price of the vehicle. For
others, the charger must be purchased separately.
Because of the limited range of electric vehicles, users must plan their trips
so that they either arrive at a location with a charging station or return to
their home base. Some trips may be difficult to plan, because the number
of charging stations is limited and there are two types of charging stations
which are not compatible. In addition, each manufacturer uses a different
style of connector for its charger. Thus, even if two vehicles use the same
method to recharge, an adaptor may be required for one vehicle to use the
other vehicle’s charging station.
The period of time needed to recharge a vehicle’s battery must also be taken
into account by users. There are two types of chargers: fast and slow. A
completely discharged battery pack can be recharged by a fast charger in
about three hours, and by a slow charger in 10 to 15 hours. Department of
Transportation officials told us that certain very fast chargers take only about
40 minutes, but they are very expensive ($30,000 to $60,000). Therefore, the
Department uses the slower, less expensive chargers (either included in the
cost of the vehicle or costing about $1,800) and plans around the time to
recharge.
Because some charging stations are not compatible with some types of
vehicles, if an agency has purchased electric vehicles from more than one
manufacturer, it may need to install more than one type of charging station.
Because of the amount of time needed to recharge a vehicle’s batteries, an
agency may need more than one charging station per model, and may even
need at least one charging station per vehicle. The three agencies we visited,
own a combined total of 42 electric vehicles, and have installed 47 charging
stations. In addition, the lack of a single standard design for charging stations
makes it difficult to plan ahead and install a recharging infrastructure when
building a public parking garage. However, Office of General Services
officials told us that manufacturers continue to work at developing a single
standard for recharging electric vehicles.
To maximize the use of their electric vehicles, State agencies are working
together to share charging facilities with one another. The length of time
required to recharge a fully discharged battery makes it impossible to
guarantee a charger will be available on demand. However, most State
agencies allow vehicles from other agencies to use their chargers if a request
is made to reserve a certain time. The Office of General Services has
created a map on its web site of electric vehicle recharging stations available
at the Empire State Plaza to assist users. The web site also contains the
address and contact information for 173 compressed natural gas, methanol,
ethanol and propane fueling stations that are open to the public. Such
9
information will help users of alternative-fuel vehicles plan their trips. In
addition, New York’s 1996 Clean Water/Clean Air Bond Act makes funds
available to State agencies to cover installation costs for charging stations.
According to the strategy developed by the task force to increase the use of
clean-fueled vehicles in New York, any infrastructure put in place with Bond
Act money should provide public access and serve as many public and private
fleets as possible.
Incentives
New York State offers a number of incentives to encourage individuals,
businesses and government agencies to acquire electric vehicles. Some of
these incentives specifically target electric vehicles, while others encourage
the purchase of any type of alternative-fuel vehicle. For example, in a
program administered by the New York State Energy Research and
Development Authority (the New York State Clean City Challenge), both
private and public fleet operators may be awarded grants to cover some of
the costs of alternative-fuel vehicles, converted vehicles, the installation of
refueling or recharging equipment, and garage modifications. About
$250,000 in grants are made each year in this program. State agencies,
municipalities and public transit authorities may also be reimbursed for such
costs by funds made available through the State’s 1996 Clean Water/Clean
Air Bond Act.
New York State also offers individuals and businesses tax credits for the
acquisition of electric vehicles and the installation of charging stations. The
State offers a credit for 50 percent of the incremental cost of a new electric
or hybrid electric vehicle registered in the State up to a maximum of $5,000
per vehicle, and a credit for 50 percent of the cost of property used for
refueling clean-fueled vehicles, including property used for charging electric
vehicles. In addition, the State exempts part of the purchase price of an
alternative-fuel vehicle from any sales tax.
Demonstration
Projects
Around July 1997, the New York Power Authority, in conjunction with the
Metro-North Railroad and IBM, began operating a demonstration project to
increase the exposure of electric vehicles and to encourage the public to
accept them. In this project, electric vehicles are provided to car-pooling
commuters who drive to their work sites from a Westchester County train
station. To accommodate the vehicles, the train station has been equipped
with special parking spots containing chargers.
The New York Power Authority also administers the funding for the
Alternative Fuels Technology Center at the Griffiss Business and Technology
Park in Rome, New York. Baker Electromotive, one of the companies
located at the Alternative Fuels Technology Center, is working with Ford
Motor Company on a mail delivery truck for the U.S. Postal Service. In
December 1999, Ford and Baker were awarded an open-ended contract to
10
assemble up to 6,000 electric mail delivery trucks for the U.S. Postal
Service.
11
12
Electric Vehicles in Other States
To help put New York’s experience into perspective, we obtained information
about the use of electric vehicles in six other states: California, Connecticut,
Massachusetts, New Jersey, Pennsylvania and Vermont. We selected
California because the vehicle emission standards used in New York are
identical to the standards developed by California (known as CAL-LEV).
According to the Federal Clean Air Act Amendments, the states may use
either the emission standards contained in the Amendments or the stricter
CAL-LEV. New York State officials elected to use CAL-LEV, because they
believed stricter vehicle emission standards were needed in New York if the
State was to meet Federal air quality standards. We selected Connecticut,
Massachusetts, New Jersey, Pennsylvania and Vermont because these five
states border on New York.
We found that, while California is the frontrunner in supporting and
promoting electric vehicles, in the last two years, New York has acquired
more of these vehicles than in the five neighboring states combined. We also
found New York’s incentives and demonstration projects are comparable to
those offered by the other states.
Vehicle Acquisition
We obtained information from the U.S. Department of Energy (DOE) on the
number of electric vehicles purchased in New York and the six other states
by the fleet operators subject to the vehicle purchasing requirements in the
1992 Federal Energy Policy Act. These fleet operators are required by the
Act to report this information to DOE. While additional electric vehicles
may have been purchased by individuals or fleet operators not subject to the
Act, the number of such vehicles is not likely to be large. The information
reported to DOE, during 1998 and 1999, indicates that at least 899 electric
vehicles were purchased in these states by private and government fleet
operators subject to the reporting requirements, as follows:
13
State
Number of Vehicles Acquired
1998
1999
Total
342
191
533
Connecticut
0
0
0
Massachusetts
60
43
103
New Jersey
4
0
4
New York
109
105
214
Pennsylvania
45
0
45
--
--
--
560
339
899
California
Vermont
1
Total
1
Vermont is not required to report its acquisitions due to its low population
density.
New York has acquired significantly more electric vehicles than the five
bordering states, but California has acquired more than twice as many
vehicles as New York. However, the rate of electric vehicles acquired by
New York in 1998 and 1999 is similar to that of California based on the
number of vehicles registered in each state. California, which established
stringent air quality standards before such standards were established by the
1990 Federal Clean Air Act Amendments, offers a number of incentives to
buyers of electric vehicles. Moreover, in 1996, California signed memoranda of agreement (MOAs) with the largest auto manufacturers. Under
these MOAs, the manufacturers are to supply a certain number of demonstration electric vehicles, provide as many commercially-available electric
vehicles as are needed to meet market demand, and continue research into
advanced battery and other vehicle technology. In return, California state
agencies are obligated to purchase electric vehicles, develop the infrastructure needed by the vehicles, and provide reasonable incentives to encourage
the acquisition of electric vehicles and the installation of charging stations.
California reviews the auto manufacturers’ compliance with the MOAs every
two years, and in the review conducted in 1998, determined that the
manufacturers were meeting their obligations.
California is the only state to have entered into such an MOA with the auto
manufacturers. Because of these MOAs, the manufacturers may have an
incentive to deliver available electric vehicles to California first, and deliver
any remaining vehicles to the other states. Officials at the Office of General
Services told us that they have met with the manufacturers in an attempt to
increase the number of electric vehicles made available in New York.
However, they have not been successful in obtaining any commitments from
the manufacturers. State officials should consider entering into the same type
14
of agreement with the auto manufacturers as was established in California.
In addition, as part of promoting business initiatives in New York, the State’s
Department of Economic Development should consider developing such an
agreement.
Charging Stations
DOE’s Alternative Fuel Data Center maintains information showing the
number of charging stations in each state with some degree of public access.
These stations either provide restricted public access (such as access to the
employees or customers of the company owning the station) or unrestricted
public access (such stations can be made available to anyone who wants to
use them). In November 1999, this information showed California had
installed more public charging stations than New York and the other five
states combined, as follows:
State
California
Charging Stations Open to Public
Total
1
Unrestricted Access
335
218
65%
Connecticut
1
1
100%
Massachusetts
4
3
75%
New Jersey
0
0
0%
New York
6
2
33%
Pennsylvania
1
0
0%
Vermont
7
7
100%
354
231
65%
Total
1
Charging stations not available to the public are not included, such as the 47
stations owned by the three State agencies we visited.
15
Connecticut
Massachusetts
New Jersey
New York
Pennsylvania
Vermont
Like New York, the other six states offer a number of incentives to
encourage individuals, businesses and government agencies to acquire electric
vehicles. We obtained information about these incentives from DOE, and
have summarized this information in the following table:
California
Incentives
Rebates or Tax Credits for Purchase
Yes
Yes
Yes
No
Yes
Yes
No
Partial Exemption from Sales Tax
No
Yes
No
No
Yes
Yes
No
Partial Exemption from Vehicle Registration Fee
Yes
No
No
No
No
Yes
No
Reduced Utility Rates for Recharging
Yes
No
No
No
No
Yes
No
Special Funding for State Agencies
Yes
No
Yes
Yes
Yes
Yes
No
Incentive
As shown in the table, New York offers many of the same types of
incentives that are offered in the other six states, although there are some
variations. For example, in California, certain air quality management
districts offer a $5,000 rebate for the purchase or lease of an electric
vehicle, while New York offers a tax credit of up to $5,000.
California and Pennsylvania offer two incentives not offered by New York:
discounted utility rates for the recharging of electric vehicles and partial
exemption from vehicle registration fees. However, until a recharging
system infrastructure is established in New York and more electric vehicles
are made available in the State by manufacturers, discounted utility rates
would likely provide New Yorkers with little incentive to purchase electric
vehicles.
We also determined that, in California, parking spots with chargers are made
available to employees and customers at places such as supermarkets and
malls. While New York is not at this stage yet, businesses and municipalities
will probably have to be involved in the State’s efforts to promote the
development of a recharging infrastructure.
Demonstration
Projects
16
Like New York, the other six states operate demonstration projects to
promote the use of electric vehicles by commuters. For example, a
California utility operates a program that leases electric vehicles to
commuters for traveling between their homes and transit stations. In
Connecticut, electric vehicles are provided to people who carpool in urban
areas on a rotating basis. The volunteer drivers track their vehicle usage,
including mileage and recharges needed. In New Jersey, electric vehicles are
provided to commuters who use public transit. The vehicles have special
parking spots complete with chargers at the train station. The commuters
may use the vehicles to get from the train station to the workplace and back
again. At the end of the project, the electric vehicles will be sold to
businesses, they will be eligible for a tax credit worth 10 percent of the
purchase price and a tax deduction if chargers are installed at the workplace.
The other states also operate other types of demonstration projects. For
example, in Massachusetts, a utility has installed rapid charging stations for
the public at Boston City Hall and Logan Airport, and has plans to install
charging stations along the Massachusetts Turnpike. Massachusetts also
operates a demonstration project where electric vehicles have been placed
into service on Martha’s Vineyard to help protect the island’s fragile
environment. The vehicles range in size from bicycles to compact cars to
pickup trucks. Vermont is testing electric vehicles in a cold-weather climate
to improve battery thermal management and cabin heating and cooling. In
one program, vehicles are provided to individuals and companies, who pay
for some of the vehicle’s maintenance costs. In another program, electric
vehicles will be leased to municipalities expected to install chargers for the
vehicles. Vermont is pursuing the use of electric vehicles even though it is
not subject to the vehicle purchasing requirements contained in the 1992
Federal Energy Policy Act.
17
18
Issues to be Considered
If New York State is to meet the requirements of the 1990 Federal Clean Air
Act Amendments and the 1992 Federal Energy Policy Act, a number of
actions must be taken to reduce air pollution and petroleum consumption in
the State. Included among these actions is a significant increase in the use
of electric vehicles by the drivers in New York State. The vehicles driven
by New York State agencies account for only a small portion of the total
number of vehicles driven in the State, but it is important that the agencies
set an example for the rest of the driving public and make a good faith effort
to acquire and use electric vehicles as much as is practicable. We conclude
that in light of the difficulties encountered in both the acquisition and use of
the vehicles the 11 agencies we reviewed have made a good faith effort to
acquire and use these vehicles.
However, we also conclude that additional actions can be taken by the
agencies, and by the Council as a whole, to help make electric vehicles
easier to acquire in New York State, to increase the use of the vehicles in
the New York City area, and to make greater use of hybrid electric vehicles.
We further conclude that more needs to be done to promote electric vehicles
to businesses and the driving public, to make them more acceptable to these
users, and to increase the portion of the total number of vehicles driven in
New York State. Accordingly, we believe the issues to be considered by the
Council include:
1.
Should the Council propose that New York State, like California, enter
into Memoranda of Agreement with the auto manufacturers to ensure
the availability of electric vehicles in New York?
2.
Are there any steps that can be taken to increase the number of auto
manufacturers that participate in the State purchase contract for
electric vehicles?
3.
Should hybrid electric vehicles be added to the State’s fleet?
4.
Can New York’s regulations relating to the sale of electric vehicles by
the major auto manufacturers be made more attainable without
compromising the State’s ability to meet its environmental goals?
5.
What steps can be taken to increase the use of electric vehicles by
State agencies and public authorities in the New York City area?
6.
Should New York State’s economic development policies consider
opportunities to advance the use of electric vehicles in its programs and
initiatives?
19
20
7.
What additional incentives can be offered to promote the development
of an infrastructure of public charging stations?
8.
What additional actions can be taken to promote the use of electric
vehicles by businesses and the driving public?
MEMBERS OF THE CLEAN-FUELED VEHICLE COUNCIL
Department of Agriculture and Markets
Department of Correctional Services
Department of Environmental Conservation
Department of Motor Vehicles
Department of Transportation
Division of the Budget
Empire State Development Corporation
Energy Research and Development Authority
Governor's Office of Employee Relations
Metropolitan Transportation Authority
New York Power Authority
New York State Thruway Authority
Office of Children and Family Services
Office of General Services
Office of Mental Health
Office of Mental Retardation and Developmental Disabilities
Office of Parks, Recreation and Historic Preservation
State University of New York
Exhibit A
WEB SITES AND OTHER RESOURCES FOR INFORMATION ABOUT ELECTRIC VEHICLES
Organizations
‚ Connecticut Commuter EV Demonstration Project: www.rideshare.com/ev/default.htm
‚ Connecticut Rideshare: www.rideshare.com
‚ Electric Vehicle Association of the Americas: www.evaa.org
‚ Morris County (NJ) Rides, Incorporated: www.mcrides.org
‚ National Automobile Dealers Association: www.nada.com
Federal Government
‚ Alternative Fuels Data Center: www.afdc.doe.gov
‚ Clean Cities Program: www.ccities.doe.gov
‚ Clean Cities AFV Fleet Buyers Guide: www.fleet.doe.gov
‚ United States Department of Energy (US DOE): www.home.doe.gov
‚ US DOE Alternative Fuel Vehicle Program Office: 1-800-959-5780
‚ US DOE Office of Energy Efficiency and Renewable Energy: www.eren.doe.gov
‚ US DOE Office of Transportation Technologies: www.ott.doe.gov
New York State Agencies and Public Authorities
‚ Department of Environmental Conservation: www.dec.state.ny.us
‚ New York Power Authority: www.nypa.gov
Other State Governments
‚ California Air Resources Board: www.arb.ca.gov
‚ Connecticut Department of Transportation: www.state.ct.us/dot
‚ Massachusetts Department of Environmental Protection: www.state.ma.us/dep
‚ New Jersey Department of Transportation: www.state.nj.us/transportation/framed/ transagen.htm
‚ Pennsylvania Department of Environmental Protection: www.dep.state.pa.us
‚ Vermont Agency of Natural Resources: www.anr.state.vt.us
Manufacturers
‚ American Honda Motor Company: www.honda1999.com
‚ Chrysler Corporation: www.chrysler.com
‚ Ford Motor Company: www.ford.com OR www.fleet.ford.com/vehicles/afvhome.asp
‚ General Motors Corporation: www.gm.com.vehicles/us/innovation/advanced.html
‚ Mazda Motor Corporation: www.e.mazda.co.jp/Action
‚ Nissan Motor Corporation USA: www.nissan-na.com
‚ Solectria: www.solectria.com
‚ Toyota Motor Sales USA: www.toyota.com/vehicles OR www.toyota.co.jp/green
‚ Volvo Cars of North America: www.car.volvo.se/special_vehicle/environment/g2_a.html
Reports
‚ Booz-Allen & Hamilton, Inc., Zero-Emission Vehicle Technology Assessment — Final Report, prepared for the New York
State Energy Research and Development Authority, Report No. 95-11, August 1995.
‚ EA Engineering, Science, and Technology, Inc., Alternative Fuels for Vehicles Fleet Demonstration Program — Final
Report, prepared for the New York State Energy Research and Development Authority, Report No. 97-4, October 1997.
‚ New York State Office of General Services, New York State Energy Research and Development Authority, New York
State Department of Motor Vehicles, and New York State Department of Environmental Conservation, New York State’s
Strategy for the Acquisition and Utilization of Clean-Fueled Vehicles for the New York State Fleet, January 1998.
‚ US DOE Office of Transportation Technologies, Alternative Fueled Vehicles for State Government and Fuel Provider
Fleets: A Guide for Meeting the Requirements of the Alternative Fuel Transportation Program, Revision 1.
Exhibit B
Major Contributors to This Report
Frank Houston
Carmen Maldonado
Gerald Tysiak
Stephen Goss
Roger Mazula
Donald Geary
Jennifer Paperman
Appendix A