Energy Commission Awards More Than $20 Million for Clean Transportation Projects

Funded Projects Will Put More Electric and Alternative-Fuel Vehicles on the Road and Boost the Development of Vehicle Batteries

SACRAMENTO – Moving California closer to a clean energy transportation sector, the California Energy Commission today approved funding of more than $20 million for innovative transportation projects.
“These investments in clean vehicles will reduce petroleum use, improve air quality, and create jobs, while demonstrating California’s commitment to a greener transportation future,” said Energy Commissioner Carla Peterman.

These awards, totaling $20,093,718, are made through the Commission’s Alternative and Renewable Fuel and Vehicle Technology Program, created by Assembly Bill 118. For the current fiscal year, 2012-2013, the program is slated to invest approximately $90 million to encourage the development and use of new technologies and alternative and renewable fuels, with the goals of reducing petroleum dependence, reducing greenhouse gas emissions, and improving air quality. The program is funded through a small surcharge on vehicle and boating registration and smog check fees.

The investments of public money through this AB 118 program are safeguarded by matching-fund requirements for awardees, and by making payments on a reimbursement basis.

The award recipients are:
Tesla Motors, Inc., will receive $10 million to purchase equipment for production of a new SUV/crossover vehicle, the all-electric Tesla Model X, at the company’s facility in Fremont (Alameda County). Tesla is providing $50,200,000 in match funding for this project, which is expected to create more than 500 new manufacturing jobs in California. The project will leverage existing investments in Tesla’s manufacturing and assembly line for the currently available Model S. As with the Model S platform on which it is based, Tesla expects the Model X to have a driving range of more than 250 miles on a single charge. It will be the first sport-utility crossover vehicle in California’s electric vehicle market. To support this emerging plug-in electric vehicle market, the Energy Commission has invested more than $20 million to assist in the development of 5,000 charging stations statewide; and has awarded approximately $2 million to help local governments plan for more plug-in electric vehicles.

The Bay Area Air Quality Management District will receive $3 million for the Bay Area “eTaxi” Program. Working with Better Place Mobility Services, Inc., the air district will demonstrate specially designed battery electric taxis that can use switchable batteries to give the vehicles essentially unlimited range. Two battery switching stations, at the international airports in San Francisco and San Jose, and six taxis that use switchable batteries will be used. Data regarding their operation will be collected as part of the project. Better Place is based in Palo Alto and Israel.  The project will demonstrate the effectiveness of this approach to reducing pollution from transportation, which accounts for nearly 40 percent of the air district’s total greenhouse gas emissions.

Quallion, LLC, will receive $2,230,595 to expand its manufacturing capacity and integrate advanced battery management system (BMS) electronics to improve the performance of the lithium ion batteries used in electric vehicles. The company, based in Sylmar (Los Angeles County), has significant experience with BMS design and production. This award is designed to assist the company in scaling up production for a growing electric transportation market. The project will include assessments of cost, capacity, performance and reliability, along with design, testing and production.

“The California Energy Commission’s investment in Quallion’s manufacturing facilities will help us pursue new applications for our advanced batteries,” said Paul Beach, the company’s president. “We have demonstrated the technical capabilities of our lithium ion batteries in medical devices and satellites, and with this funding we can leverage that success toward clean transportation projects.”

Zero Motorcycles will receive $1,815,123 to expand the company’s full electric motorcycle production capacity.  The company is based in Scotts Valley (Santa Cruz County).  Zero Motorcycles previously implemented manufacturing in Asia, but has chosen to bring its manufacturing and assembly operations back to California. With this award, the company plans to quadruple its motorcycle production capacity and develop new prototype motorcycles.

“We are honored to receive this generous grant from the California Energy Commission and are excited to continue to expand our manufacturing capacity here in California,” said Richard Walker, CEO of Zero Motorcycles. “This project offers a unique opportunity to keep the competitive advantage of California’s skilled labor force and create dozens of additional jobs during both the implementation and volume manufacturing stages of the project. This grant is a milestone for us because it allows Zero to dramatically increase the scale of our assembly line to meet customer demand for our outstanding electric motorcycles.”

Valley Garbage and Rubbish Co., Inc., will receive $300,000to build and operate a compressed natural gas (CNG) fueling station that will support the company’s fleet of natural gas-powered garbage collection trucks used for collection of solid waste in the city of Santa Maria (Santa Barbara County). This station, to be located in an existing solid waste collection center, will also be available for other goods-movement fleets along Highway 101. This station will make it easier for fleets to switch to less-polluting CNG vehicles, as there are no CNG stations within 25 miles of this location.

The City of Mount Shasta will receive $200,000 to produce a comprehensive plug-in electric vehicle (PEV) readiness plan for Siskiyou, Shasta, and Tehama counties. The commercial introduction of PEVs is just now beginning. Developing a readiness plan will enable stakeholders to help communities prepare for more of these clean vehicles, and is key to creating linked charging infrastructure along the state’s main highway corridors. Streamlining permitting and installation for charging stations will be a key benefit of this planning effort.

In addition, buy-down incentives totaling $2,548,000 will be awarded for 180 alternative-fuel vehicles, most of them school buses. These incentives help to pay the difference between alternative-fuel vehicles and conventional vehicles. They are available only for new natural gas and propane vehicles that meet all the emission requirements of the California Air Resources Board.

These buy-down incentives are reserved for vehicle manufacturers or their designated dealers and passed on to buyers in California at the time of sale. To receive the incentives, buyers must agree to register and operate the vehicles in California at least 90 percent of the time for three years.

The incentives approved today go to the following companies:
A-Z Bus Sales in Colton (San Bernardino County) will receive a total of $1,688,000 in buy-down reservations. Of that,  $1,320,000 is for 66 propane school buses of 14,001 pounds gross vehicle weight and greater; $360,000 is for 36 propane vehicles of 14,001 to 26,000 pounds gross vehicle weight; and $8,000 is for one natural gas vehicle of 8,501 to 14,000 pounds gross vehicle weight.

Greenkraft, Inc., in Santa Ana (Orange County) will receive a total of $740,000 in buy-down reservations. Of that, $400,000 is for 40 propane vehicles of 14,001 to 26,000 gross pounds vehicle weight; and $340,000 is for 17 natural gas vehicles of 14,001 to 26,000 pounds gross vehicle weight.

Big Valley Ford, Inc., in Stockton (San Joaquin County) will receive $114,000 for the buy-down of 19 propane vehicles of 8,501 to 14,000 pounds gross vehicle weight.

Trans West Truck Center in Fontana (San Bernardino County) will receive $6,000 for the buy-down of one propane vehicle of 8,501 to 14,000 pounds gross vehicle weight.

The Energy Commission is the state's primary energy policy and planning agency. Created by the Legislature in 1974 and located in Sacramento, six basic responsibilities guide the Energy Commission as it sets state energy policy: forecasting future energy needs; licensing thermal power plants 50 megawatts or larger; promoting energy efficiency and conservation by setting the state's appliance and building efficiency standards; supporting public interest energy research that advances energy science and technology through research, development, and demonstration programs; developing renewable energy resources and alternative renewable energy technologies for buildings, industry and transportation; planning for and directing state response to energy emergencies.
More information about the Alternative and Renewable Fuels and Vehicle Technology Program is available at the Energy Commission’s DRIVE website at www.energy.ca.gov/drive/. To stay up to date on developments in the program, sign up for the ListServer at www.energy.ca.gov/altfuels.