Connecticut Department of Energy and Environmental Protection
Board Agenda 9:00 am Chair Commissioner Dykes Call to Order Introductions Summary of January 30 Meeting and Approval of Minutes (vote) 9:15 am Overview of CT’s Used Vehicle Market in Connecticut, Brad Hoffman 9:30 am Overview of CHEAPR program design options, CSE 9:45 am Discussion of CHEAPR Program Design 10:15 am Next Steps for Board Action on Program Design Options 10:30 am Public Comments Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Board Agenda Introductions Summary of January 30 Meeting and Approval of Minutes (vote) Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Update From January Meeting Bridge funding put in place during program transition Public Act 19-117 (94) codified at Conn. Gen. Stat. section 22a-202 directs CHEAPR be administered by the CHEAPR Board on and after January 1, 2020. The Board must authorize incentive levels and use of gap funding during program transition. Program vendor DEEP and DAS have finalized the contract for program administration, and authorized CSE to prepare program design options for the board. Program parameters and implementation guidelines Today’s meeting initiates the Board’s discussion on the parameters including new parameters for used vehicles and income eligibility thresholds. Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
EV Roadmap Recommendations • Move expeditiously to implement the revised CHEAPR program per Public Act 19-117. • Achieve funding stability and develop strategies to prevent any program interruption. • Continue to collect and analyze CHEAPR purchase data to implement changes that improve overall program effectiveness. • Assess rebate parameters, including rebate levels, bins, LMI components, MSRP, eligibility criteria, and strategy to communicate program adjustments. Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 5
EV Roadmap Recommendations • Consider implementation options with and without auto dealer incentive. • Maintain and expand education, marketing and outreach. • Support expansion and extension of the Federal EV Tax Credit. • Work to develop market-based incentives to support EV adoption through TCI, the EDCs, and the OEMs. • Maintain FCEV rebates at current levels through the next five years of the program along with the development of infrastructure to incent the deploy FCEVs Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 6
CHEAPR’s Impact Launched in May 2015, CHEAPR has issued over $11 million for the purchase or lease of over 6,069 electric vehicles and 53% of those have been full battery electric vehicles! Best Selling BEVs Best Selling PHEVs Toyota Prius Prime Tesla Model 3 888 1,513 Chevrolet Bolt Chevrolet Volt 588 877 Nissan Leaf Honda Clarity PHEV 412 442 Data as of July 1, 2020 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
History of CHEAPR Incentives While EV sales have grown rapidly in the last few years, CHEAPR has been able to adjust to market conditions and ensure the program is fiscally responsible. CHEAPR Average Program Cost per Vehicle Rebate (Vehicle + Dealer Incentive) $2,670 $2,319 $2,088 $1,691 $1,174 Launch Bins Bin Change 1 Bin Change 2 Bin Change 3 Bin Change 4 (May 2015 - Jun 2016) (Jul 2016 - Jun 2017) (Jul 2017 - Oct 2018) (Oct 2018 - Sep 2019) (Oct 2019 - current) Data as of July 1, 2020 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
CHEAPR Program Update Residents from across Connecticut have purchased electric vehicles utilizing the CHEAPR incentive Top 10 CT Towns Stamford 311 Fairfield 193 West Hartford 180 Norwalk 175 Westport 154 New Haven 148 Glastonbury 125 Milford 117 Danbury 113 Guilford 111 by Zip Code Data as of July 1, 2020 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
CHEAPR’s Impact There are approximately 12,624 electric vehicles registered in Connecticut as of July 1, 2020 Total Active EV Registrations in Connecticut as of July 1, 2020 14000 12624 12000 11677 10339 10000 9289 8000 7987 CHEAPR Launch 6000 5923 4878 4000 2344 2000 0 108 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection PHEV BEV FCEV eMC Grand Total
Current Incentive Levels Current Incentive Levels for the purchase or lease of an eligible electric vehicle are based on the EPA rated all- electric range of the vehicle: Incentive EPA All Electric MSRP Cap Amount Range $1,500 ≥ 200 miles $42,000 BEV $500 < 200 miles $42,000 PHEV $500 Any PHEV $42,000 FCEV $5,000 Any FCEV $60,000 effective on and after October 15, 2019 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Eligible Vehicles An Eligible Vehicle under CHEAPR… …must be a new Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV) or Fuel Cell Electric Vehicle (FCEV) …must have an MSRP under $42,000 for a BEV/PHEV or under $60,000 for a FCEV …must be highway capable Not Eligible: Aftermarket EVs and conversions, scooters, ATVs, neighborhood vehicles, electric motorcycles Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Overview of the Used Vehicle Market • Snapshot of the national use EV Market, Jim Fleming, CARA • Snapshot at the dealership level, Brad Hoffman, Hoffman Auto Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Board Agenda CSE Program Design Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Board Agenda Discussion on Program Design Proposal Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
Board Agenda Next Steps Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection
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