Road Use Regulations Roundup – September

Some trends in this latest regulation roundup:

• Some cities and states are expanding road use regulations to include mini-trucks and other off-road vehicles
• LSV/NEV road use ordinances continue to be passed by local municipalities although safety concerns, usually raised by the local police department, remain an issue
• In some localities the new LSV ordinances prohibit the use of golf cars which previously had been allowed
• Texas MSV and Massachusetts LSV laws went into effect

Boonville, Ind - Warrick County officials have taken the first steps to allowing ATVs to use some county roads.

Baraboo, WI – City Council approves ordinance allowing NEVs to be used on most city streets.

Minnesota – Minnesota House of Representatives passes bill allowing the use of mini-trucks on local streets and highways under a special permit issued by the local governments.

Ocean City, NJ – Ordinance banning the use LSVs on city streets which was supported by the police department failed to pass.

Peabody, KS – Local ordinance is passed allowing alternative transportation vehicles on city streets including ATVs, golf carts and mini-trucks.

Saanich, British Columbia, Canada – City Council bans the use of NEVs on city streets because of concerns about the safety of vehicles in crashes with highway speed vehicles.

Neoga, IL – City Council passes ordinance allowing NEVs to be used on city streets.

Wheeling, IL – Village Board passes ordinance allowing NEVs to be used on city streets.

Massachusetts – On July 31, 2009 the states NEV ordinance , which allows vehicles to operate on streets with speed limits of 30 mp or less, went into effect.

Colorado – State Senate passed a bill allowing NEVs and street legal golf cars to be operated on streets with speed limits of 35 mph or less.

Texas - On September 1, 2009 the state’s MSV law, which allows NEVs to be operated on streets with speed limits of 45 mph or less, went into effect. In addition a new law stops the state DMV from registering golf carts but allows cities to pass their own ordinances governing golf cars.

Chesterton, IN – State LSV law went into effect on July 1, 2009 that excludes the use of golf cars on the city streets.  Chesterton previously allowed the use of golf cars on city streets.

Nebraska – State legislature is considering whether mini-trucks and other off-road vehicles should be allowed on public roads.

Abilene, KS – City passes ordinance allowing the use of work-site utility vehicles and mini-trucks on city streets except main thoroughfares.

DOE Announces Funding Awarded For Clean Cities Programs

Energy Secretary Steven Chu recently announced the selection of 25 cost-share projects under the Clean Cities program that will be funded with nearly $300 million from the American Recovery and Reinvestment Act.  Under the Recovery Act, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, helping reduce petroleum consumption across the U.S.  Many of the projects include installing recharging stations for electric vehicles and  purchasing electric vehicles. One such project is The Triangle J Council of Governments’ Carolina Blue Skies and Green Jobs Initiative which is planning to purchase 56 NEVs with some of the funds.  Learn more:   DOE

Tampa Allows Free NEV Service To Return

The Hillsborough County Public Transportation Commission voted to rescind their earlier decision that effectively stopped NEVs from being offered for free transportation.  The vehicles charged no fee for short rides in the downtown area but sold advertising and allowed drivers to accept tips.  The service angered local taxi drivers and the commission passed an earlier ruling halting the service.  There is some disagreement over the commission’s right to regulate the vehicles since they may not technically be taxis since they are free.  The commission is trying to obtain a legal ruling in that regard, and establish some regulatory procedures.  While that process moves forward, they are asking NEV operators to voluntarily follow some safety and insurance guidelines.  Learn more:  Tampabay.com

Road Use Regulations Roundup – May

Some trends in this latest regulation roundup:

• Some cities are expanding road use regulations to include golf cars
• NEV road use ordinances continue to be passed by local municipalities although safety concerns remain an issue for some
• Demand is in increasing for allowing utility vehicles and mini-trucks on public roads
• Another state looking to adopt a medium speed vehicle law

North Carolina – Bill in the state assembly would add Currituck and New Hanover counties to a state law that allows golf cars on streets in several resort communities.

Pontiac, IL – Ordinance being drafted that would allow the use of modified golf cars as NEVs.

Normal, IL – Considering an ordinance allowing the use of NEVs on city streets.

Merrill, WI – City council passed an ordinance allowing the use of NEVs on city streets.

Colorado – House passed a bill that would allow NEVs on public highways.

Palm Desert, CA – Safety concerns have stalled a bill in the state legislature that would broaden the use of NEVs on city streets.

Minnesota – Legislation has passed both the state house and senate that would allow counties to permit the use of mini-trucks, but not on interstate and state highways.

New York – The state DMV issued an opinion that utility vehicles are not allowed on roads or ATV trails unless the law is changed.

New Strawn, KS – City council approved an ordinance that allows work-site utility vehicles and micro utility vehicles to be driven legally on city streets.

Cushing, OK – Passed an ordinance regulating the operation of mini bikes, golf carts, ATVs and utility vehicles on the streets and highways of the city.

Utah – Cities are debating allowing the use of mini-trucks on public roads. Since they are classified as street legal ATVs there is concern about allowing the use of all types of ATVs.

Oregon – Governor has introduced a transportation bill that creates a medium speed vehicle designation aimed at increasing the adoption of NEVs

Road Use Regulations Round Up

This round up features some action in Canada, Wisconsin, Colorado and some other states as well as signs of growing interest in medium speed vehicle regulations.

Grand Chute, WI – Town asking state for help regarding the use of NEVs on some of the many roads under state jurisdiction that criss-cross the city.

Loveland, CO – House Bill 1026, which would allow neighborhood electric vehicles on public highways, passed the Judiciary Committee and will be going to a House vote.

North Vancouver, Canada – City council rejects staff recommendations to wait for additional LSV safety standards before allowing vehicles on roads.

Sedona, AZ - Public transportation commission recommends feasibility study to look at NEVs as a public transportation option.

British Columbia, Canada – Motor vehicle regulations amended to allow incidental use of roads by utility vehicles during their normal off-road use.

Kennebunk, ME - ZAP Xebra three-wheeled truck doesn’t pass registration as a motorcycle and therefore cannot be legally driven. Amendment to address issue in process.

Flower Mound, TX – Transportation commission is urged to look at LSV regulations in anticipation of increased usage of the vehicles.

Denver, CO – State Senate bill aims to create uniform road use regulations for LSVs

South Daytona, FL – After a favorable feasibility study, city officials are moving ahead on allowing golf carts to be used on city streets.

Manitoba, Canada – Manitoba province is looking at enacting similar legislation as Ontario and Quebec to allow LSVs on public roads.

Merrill, WI - City officials are drafting legislation to allow NEVs on public roads with speed limits of 35mph or less

Medium Speed Vehicle Regulations – At the end of February nine states were considering medium speed vehicle laws: Hawaii, New Mexico, Kentucky, New York, Oregon, South Carolina, Georgia and Colorado. Speed limits proposed ranged from 35mph to 50 mph with most at 45 mph. Five states who have already adopted MSEV laws include Washington, Montana, Minnesota, Oklahoma, and Tennessee.

Connecticut – Some State Representatives are pushing to legalize NEVs

NEVs Become A Point Of Attack On Stimulus Bill

Numerous blogs and websites are recycling the same political spin in opposition to the stimulus bill.  Typically the headline includes the phrase “$300 million for golf carts”. (Here is an example)  The story then highlights NEVs from a list of electric vehicle types that would be eligible for federal funding under the bill and conflates NEVs/LSVs with golf carts.

Whether you are for or against the stimulus bill, this is another example of how various media outlets and others are blurring the line between NEVs/LSVs and golf carts.  In the past, the blurring has had more to do with vehicle safety issues.  In both cases, the blurring is to the detriment of NEV/LSV manufacturers.  If this trend continues, NEV/LSV manufacturers may have to more aggressively and clearly delineate the differences between NEVs/LSVs and golf carts in order to protect the generic NEV/LSV brand and their specific brand of NEV/LSV.

Plug-In Tax Credit To Boost NEV Sales?

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.

Introduction – Gas Prices Drive NEV Sales

While this blog will be based mostly on current and more recent events, my first few posts will include some information and insights about the NEV/LSV market I’ve been gathering from the beginning of this year.

According to GEM’s sales and marketing director Jay Wik, GEM Asia reports strong increases of 30% in sales revenue attributing the increases to rising oil prices and concern about global warming. In the US dealers are reporting increases of 10-30 percent in the last year and inquiries have increased ten-fold. Increases have occurred in all parts of the country and for exports as well. The company reports that production increased 15 percent in May. Second quarter sales were reportedly up 30% from last year. One GEM dealer experiencing the sales jump is Greg Welsh of Gulf Atlantic Vehicles in New Smyrna Beach, FL who has reported a sales increase f 30%.