Proposal:

Approve GM Corporation as a Qualified Manufacturer in the MSRC’s Zero-Emission Vehicle “Quick Charge” Program and Authorize the MSRC to Approve Future Manufacturers as Part of the FY 1995-97 AB 2766 Discretionary Fund Work Program

Synopsis:

As part of the FY 1995-97 AB 2766 Discretionary Fund Work Program, the MSRC developed a $7 million Zero-Emission Vehicle “Quick Charge” Program. This included a manufacturers’ incentive to assist consumers in purchasing EVs by offering a $5,000 buydown off the purchase price when sold within the South Coast District by a qualified manufacturer. GM Corporation is the first manufacturer to submit a qualifications package that meets the RFQ requirements. This action is to enter into a letter agreement with GM Corporation as a qualified manufacturer in this program and authorize the MSRC to approve future qualified manufacturers.

Committee:

Mobile Source Air Pollution Reduction Review Committee, August 22, 1996, Unanimously Approved

Recommended Action:

1. Approve GM Corporation as a qualified manufacturer for purposes of participating in the MSRC’s ZEV “Quick Charge” Program;

2. Authorize the MSRC to approve future manufacturers for participation in its ZEV “Quick Charge” Program;

3. Authorize the Chairman of the Board to enter into letters of agreement with GM Corporation and future qualified manufacturers as approved by the MSRC as part of the FY 1995-97 AB 2766 Discretionary Fund Work Program.

Mayor John Longville
Chair, Mobile Source Air Pollution Reduction Review Committee

Background

As part of the FY 1995-97 AB 2766 Fund Work Program, the MSRC developed a $7 million Zero-Emission Vehicle “Quick Charge” Program, which included three components, as indicated below:

--RFP for Outreach Coordinator	$175,000
--RFP for Electric Vehicle Corridor	$825,000
Communities Program Workplan --Request for Qualifications for $5,000 Manufacturers Buydown Incentive	$6,000,000
Total	$7,000,000

On November 9, 1995, the Governing Board approved the appointment of the Planning Center as the Outreach Coordinator for an 18-month appointment. On March 8, 1996, the Governing Board approved the RFP for the EV Corridor Communities Program, and the seven proposals received in response to this RFP are currently being evaluated. In December 1995 the final component, the draft RFQ for the buydown incentive, was provided to the Board as part of the FY 1995-97 Work Program. This manufacturers’ incentive is intended to assist consumers in purchasing or leasing EVs by offering a $5,000 buydown off the price of the vehicle when sold or leased within the South Coast District by a qualified manufacturer.

Bid Evaluation

The MSRC formed an EV Subcommittee to develop and define the ZEV “Quick Charge” Program. As part of its role, the EV Subcommittee, assisted by TAO staff and the MSRC’s Technical Consultant and Outreach Coordinator, held a series of workshops for manufacturers, utilities and local governments desirious of participating in the ZEV “Quick Charge” Program. These workshops were designed to solicit comments on the Community Corridor and Manufacturer Incentive Programs before issuance of the final RFP and RFQ.

In December 1996, following these workshops, the final RFQ for the $5,000 manufacturers buydown incentive was provided to the Board and released to interested parties. The intent of the RFP is to identify manufacturers with the parts, knowledge, training, technical ability and service capability to participate in a pilot-demonstration of 1998-style EVs in the South Coast District. Manufacturers may submit their qualifications packages through July 1, 1997. The earliest release of incentive funding will be October 1, 1996, for EVs delivered to the consumer after July 1, 1996. A manufacturer would receive funding for the consumer incentive directly, which would be used to buydown the manufacturer suggested retail price of a qualified EV. This buydown will be reimbursed on a quarterly basis to each qualified manufacturer and based solely upon the number of vehicles sold or leased during the previous quarter.

GM Corporation was the first manufacturer to submit a qualifications package that meets the RFQ requirements. On August 22, 1996, the MSRC considered GM’s participation in the program and unanimously approved GM as a qualified manufacturer for participation. The MSRC requests that the AQMD Governing Board approve GM as a qualified manufacturer in the program and authorize the Chairman of the Board to enter into a letter agreement with GM Corporation as a qualified manufacturer in this program. It is anticipated that GM will place its EV-1 at its Saturn dealers sometime in the Fall. Vehicle specifications for GM’s EV-1 are attached for your information.

In addition, it is anticipated that other manufacturers will submit qualifications packages for consideration. To avoid any delays in the program, the MSRC requests that the AQMD Governing Board authorize the Committee to approve future qualified manufacturers for participation in this program and authorize the Chairman of the Board to enter into letters of agreement with future qualified manufacturers as determined by the MSRC as part of the FY 1995-97 AB 2766 Discretionary Fund Work Program.

Resource Impacts

The AQMD acts as administrator to the AB 2766 Program, and money received for the AB 2766 Discretionary Fund Program is recorded in a special revenue fund. Since the contracts will be drawn from this special fund, there would be no fiscal impact on the AQMD’s operational budget.

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