Transport Strategy

Victoria Quay, Edinburgh EH66QQT: 0131-2444732, F: 0131- 244 7281Ch ris.milne@transportscotland.gsi.gov.uk

Eileen WilsonCommunity Planning ManagerChief Executives UnitArgyll & Bute CouncilWest King StreetHelensburghG84 8UW

Dear Ms Wilson,

Low Carbon Vehicle Procurement Support Scheme

BTRANSPORTSCOTLAND

Date:13 August 2010

The Climate Change (Scotland) Act 2009 has set stretching targets to reduce emissions by 42%by 2020 and by 80% by 2050. It is widely recognised that reducing emissions from transport willbe particularly challenging as the sector accounts for a quarter of Scottish emissions. TheScottish Government is keen to encourage the development and use of low carbon vehicletechnology, and we envisage almost complete decarbonisation of road transport by 2050 in ourClimate Change Delivery Plan, through the wholesale adoption of electric cars and vans.

The First Minister announced the launch of the Low Carbon Vehicle Procurement SupportScheme at the 2020 Climate Change Conference on 16th June 2010. The key aims andobjectives of the scheme are outlined at Annex A.

This scheme, supported by and agreed with COSLA, will make £3.6m available to CommunityPlanning Partnerships to provide financial support for the procurement or lease of low carbonvehicles. The scheme will provide financial support to bridge the cost gap between aconventional vehicle and its low carbon counterpart, and may also be used to provide supportfor the installation of publicly accessible charging/fuelling infrastructure.

The scheme will be open to almost all types of vehicles from scooters through to streetsweepers, vans and minibuses (maximum capacity 16 passengers and 1 driver). Vehicles mustbe either powered by electricity, biomethane, biodiesel, bioethanol, hydrogen or be a plug-inhybrid_electric vehicle (PHEV). The scheme does NOT include the procurement of petrol ordiesel vehicles or hybrid engined passenger cars. However, hybrid engined vans and minibusescan be procured through the scheme.

Full vehicle criteria, including an outline list of eligible vehicle types, can be found at Annex B.However, Transport Scotland officials will be on hand throughout the duration of the scheme tooffer assistance in ensuring that the vehicles procured meet these criteria.

The scheme will allocate funds to be used to bridge the gap between the cost of an internalcombustion engined vehicle and a low carbon alternative. Typically, this equates to a differenceof £20k for a car and £40k for a van, dependent upon size of vehicle, fuel type and supplier.CPPs are at liberty however to negotiate with any supplier and secure the best price they can.

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Electricity charging points can be installed for approximately £100 in garages and workshops ifvehicles are locked securely overnight and are single phase supplies.Three phase and publiclyavailable charging points can cost in the region of £3-7k each whilst rapid chargers, capable ofcharging a car in 20 mins, can cost between £50k and £150k.

COSLA has agreed that each CPP is allocated to one of four bands based upon populationcensus data to ensure that all Community Planning Partnerships receive sufficient funds toenable the purchase of, for example, at least one car, one van and the necessary charginginfrastructure. It will however be the responsibility of each CPP to decide on the mostappropriate split of vehicle types being procured. In essence the bigger the population coveredby the CPP the larger the allocation. Your specific allocation can be found at Annex C. Fundswill be made through s70 of the Transport (Scotland) Act 2001.

The lead time from placement of an order to delivery of the vehicle can be up to 6 months. It iscondition of the scheme that vehicles are ordered and charging infrastructure is installed by 31March 2011 .

This scheme will give public bodies the opportunity to evaluate low carbon vehicles in a widerange of operating scenarios and to provide feedback to the Scottish Government and otherpublic bodies on their use and suitability across different operating environments, throughout a12 month evaluation period. Monitoring information will be requested throughout the one yeartrial to establish how the vehicles have performed, what works well and what issues havesurfaced. A proforma for this purpose will be prepared jointly with the Society of Chief Officers ofTransportation in Scotland (SCOTS), and circulated to those CPPs that purchase vehicles, indue course.

Vehicles purchased outright can be badged as is required as the asset belongs to the publicbody. This is an opportunity to let the public and employees know that the vehicle is low carbonand that the public body is making a positive contribution to reduce emissions. All other costsother than gap funding for vehicles or purchase of infrastructure must be borne by theparticipating public body.

The deadline for responses from CPPs back to the lead Transport Scotland contact, Chris Milne,is 15 September 2010 setting out how much of the allocated gap funding you wish to utilise(template at Annex D). Grant offer letters, containing full terms and conditions, will then be sentout based on the agreed allocations of required gap funding. We are asking you to return thetemplate quickly to enable, if necessary, the re-allocation of funds to CPPs that could utilise alarger allocation.

A copy of this letter, along with all annexes, will shortly be published on Transport Scotland'swebsite. Proforma responses will be collated and the results published at a later date. Individualresponses will not be published.

Should you have any queries on the scheme Chris can be contacted atchris.milne@transportscotland.qsi.qov.uk or by telephone on 0131 2444732.

Yours

,//

Chris MilneLow Carbon Vehicles and Fuels Policy Officer

Transport Scotland

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]SOI400lltlV. .~.~An agency of ~~ The Scottish Government

Annex A

Scheme aims and obiective

Obiective

• The Scottish Government's Climate Change Delivery Plan, published in June 2009, set atransformational outcome of almost complete decarbonisation of road transport by 2050, withsignificant progress by 2030. The objective of this scheme is to accelerate our progress indecarbonising our road transport by promoting the uptake of low carbon vehicles in theScottish Fleet by using public sector procurement as an exemplar model.

This objective will be achieved by satisfactory fulfilment of the schemes Aims:

o Providing a platform for low carbon vehicles to demonstrate their functionality and potentialfor emissions reduction;

o Allowing economies of scale to reduce vehicle cost via the procurement of a significantquantity of emerging vehicle technologies; and

o Stimulating increased confidence in the low carbon vehicle market through public sectorleadership.

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Annex B

Eliqible Vehicles

To ensure that the aims and objective of the scheme are realised, those vehicles which areapplicable for procurement through the scheme must satisfy the following criteria:

Eligible Vehicles must:

1) Demonstrate a new, emerging technology for that vehicle type, which showsinnovation by providing improving vehicle efficiency and reducing tailpipe emissions;and

2) Demonstrate a technology which is not already widely recognised in the commercialmarket for that vehicle type.

With this criteria in mind, Table 1 gives an indication of the eligibility of some of the morecommon types of low carbon vehicles.

Table 1Fuel type / enginetechnoloPetrolonlDiesel onl

Non-electric hybrid engine

Plug-in electric hybrid engine

Electricity only

Biodiesel

Bioethanol

All fuel t esAll fuel t es

Vehicle type Eligible for the schemees/noNoNoNoYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesYesNoNo

Please note that the vehicles listed in this table are not final, and give an indication only of themost common vehicle types by technology. Any additional technologies which are not addressedhere will be considered on an individual basis by Transport Scotland officials.

Table 2 provides some indicative emissions thresholds for the most common vehicle types, andthis should be used as a guide for defining low carbon vehicles in each case. Transport Scotlandrecommends that preference is given to the procurement of those vehicles that do not exceedthe thresholds set out in this table.

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Table 2Vehicle Type

Passen er CarsLight Goods Vehicles

Value for money

Vehicle Class I Size Recommendedmaximum tailpipeemissions of C02

Ikm75110

135

142

196

207

To ensure that the scheme achieves value for money against its objectives, those vehicleswhich are significantly more expensive than their conventionally powered counterparts must becapable of achieving a significant improvement in vehicle C02 emissions levels.

Therefore the procurement of vehicles which do not meet the thresholds set out in Table 2should not be included in the scheme if the subsidy required exceeds £7,500 for a passengercar, or £15,000 for a light goods vehicle.

* EU Emissions Standards Class

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Annex C

Fundinq allocations

Council Population Cars* Vans* Charger* Cars Vans Charger Total

Census Units Unit Unit Unit£ £ £

2001* 20,000 40,000 5,000£ £ £ £

Orkney Islands 19,245 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

Shetland Islands 21,988 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

Eilean Siar 26,502 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

Clackmannanshire 48,077 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

Midlothian 80,941 1 1 1 20,000 40,000 5,000 65,000£ £ £ £ OJ

Inverclyde 84,203 1 1 1 20,000 40,000 5,000 65,000 t\)::J

£ £ £ £ c..

Stirling 86,212 1 1 1 20,000 40,000 5,000 65,000 -'£ £ £ £

Moray 86,940 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

East Renfrewshire 89,311 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

East Lothian 90,088 1 1 1 20,000 40,000 5,000 65,000£ £ £ £

Argyll & Bute 91,306 1 1 1 20,000 40,000 5,000 65,000

West £ £ £ £Dunbartonshire 93,378 1 1 1 20,000 40,000 5,000 65,000

£ £ £ £Scottish Borders 106,764 1 2 1 20,000 80,000 5,000 105,000

East £ £ £ £Dunbartonshire 108,243 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £Angus 108,400 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £South Ayrshire 112,097 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £ OJEast Ayrshire 120,235 1 2 1 20,000 80,000 5,000 105,000 t\)::J

£ £ £ £ c..

Perth & Kinross 134,949 1 2 1 20,000 80,000 5,000 105,000N

£ £ £ £North Ayrshire 135,817 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £Falkirk 145,191 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £Dundee City 145,663 1 2 1 20,000 80,000 5,000 105,000

Dumfries & £ £ £ £Gallowav 147,765 1 2 1 20,000 80,000 5,000 105,000

£ £ £ £West Lothian 158,714 2 2 2 40,000 80,000 10,000 130,000

£ £ £ £Renfrewshire 172,867 2 2 2 40,000 80,000 10,000 130,000 OJ

£ £ £ £ t\)::J

Highland 208,914 2 2 2 40,000 80,000 10,000 130,000 c..

£ £ £ £(,)

Aberdeen City 212,125 2 2 2 40,000 80,000 10,000 130,000£ £ £ £

Aberdeenshire 226,871 2 2 2 40,000 80,000 10,000 130,000£ £ £ £ OJ

South Lanarkshire 302,216 2 4 3 40,000 160,000 15,000 215,000 t\)::J

£ £ £ £ c..

North Lanarkshire 321,067 2 4 3 40,000 160,000 15,000 215,000.j>.

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£ £ £ £Fife 349,429 2 4 3 40,000 160,000 15,000 215,000

£ £ £ £Edinburgh 448,624 2 4 3 40,000 160,000 15,000 215,000

£ £ £ £Glasgow City 577,869 2 4 3 40,000 160,000 15,000 215,000

T 62 £ £ £ £TOTAL 5,062,011 42 47 840,000 2,480,000 235,000 3,555,000

* Please note that the split of vehicle types and charging units set out in the above table isindicative only of what can be procured with each allocation. Procuring bodies will be free topurchase any combination of the eligible vehicles, subject to the available funds.

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An nex D

Low Carbon Vehicle Procurement Support Scheme - Response to Scottish Government

To be returned by 15 September 2010 to chris.milne@transportscotland.qsi.qov.uk

CPP name:

Contact within the CPP (include email and telephone):

We will use our full allocation of funding Yes / No

We will use £ of our allocation

We could use additional funding if available Yes / No

We could utilise £ of additional funding, if available.

Number of vehicles / charging points we expect to purchase using our allocation

Cars

Vans

Other

Charging points

Please provide further details on the fuel/engine type of the vehicles that you intend to procure, ifavailable (eg electricity, hydrogen):

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