DEALERSHIP RECOGNITION:

PROGRAM SUMMARIES AND RECOMMENDED PRACTICES

November 2015

ZEV Program Implementation

Task Force

ZEV DEALERSHIP RECOGNITION:

PROGRAM SUMMARIES AND RECOMMENDED PRACTICES

Auto dealerships play a critical role in accelerating the ZEV market, acting as the link between

manufacturers and their customers. Auto dealerships that make a commitment to selling ZEVs

can help to educate consumers through appropriate training of sales staff, and showing

consumers where to find more information regarding utility rates, electric vehicle supply

equipment (EVSE) installation, or rebates for which they may be eligible. To date, four of the

Task Force states have established dealer recognition programs, or recognized ZEV dealers

through other environmental awards, in order to showcase auto dealers who are doing the

most to support the growing market for ZEVs.

Below are program summaries for the ZEV dealer recognition efforts that have been

conducted in the Task Force states to date, as well as recommended practices for states

seeking to develop their own dealer recognition programs.

California GEELA Program

The California Governor’s Environmental and Economic Leadership Awards (GEELA) are presented annually in recognition of individuals, organizations, or businesses that are environmental leaders in the state. The program is administered by the California Environmental Protection Agency, working in partnership with several other agencies. Almost any entity residing in California is eligible to apply for the award on the CalEPA website. The award is offered in six categories, including Environmental Education, Ecosystem and Land Use Stewardship, Climate Change, Sustainable Practices, Waste Reduction, and Zero Emission Vehicle Dealers.1 Applicants for the ZEV Dealers category must complete an application that requests information on several different aspects of the ZEV sales process in order to gauge dealers’ contribution and commitment to supporting ZEV deployment. The application requests total light-duty ZEV sales over the course of one year, both as a number and as a percentage of the dealership’s total sales, as well as descriptions of the dealer’s outreach activities to bolster consumer interest and support local and regional planning efforts for ZEV deployment. The application also asks dealers to describe the training they provide to their staff, what educational materials they distribute to consumers, and how the dealerships support charging installation and other after-sales support following the sale of the vehicle. Lastly, the application asks if the dealership is pursuing other “Green Dealership” efforts to reduce emissions, such as including ZEVs in its own fleet or supporting employee 1 CalEPA. “2015 Governor’s Environmental and Economic Leadership Awards Program.” Available at: http://www.calepa.ca.gov/Awards/GEELA/

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ownership of ZEVs, or offering public EV charging. A Selection Committee reviews the applicants based on a range of criteria, including demonstrable results, effective partnership between the applicant and private, public, and non-profit sectors, innovation and uniqueness, and potential transferability of the concept to other applications.2 The 2014 GEELA for Zero Emission Vehicle promotion was awarded to The Ford Store Morgan Hill in the San Francisco Bay Area. This dealership sold more Energi vehicles than any other dealer in the world in 2012. The dealership is also making renovations to its buildings to install solar panels and wind turbines, in part to supply electricity for charging electric vehicles. Connecticut REVolutionary Dealers

In 2014, the Connecticut Department of Energy and Environmental Protection (DEEP) and the Connecticut Automotive Retailers Association (CARA) announced the first-ever “Connecticut REVolutionary Dealer Award” to recognize state automobile dealers who sold or leased the most electric vehicles over a six-month period. In order to preserve fairness between larger and smaller dealerships, two awards were offered, one to the dealership that sold the highest number of EVs, and other to the dealership that sold the greatest share of EVs relative to its total sales. A notable aspect of the REVolutionary Dealers program was the collaboration between DEEP and CARA, who formed a close working relationship and developed a program that leveraged the strengths of both groups, making effective use of limited resources. DEEP and CARA scheduled the kickoff event for the program to coincide with a regular auto dealers’ meeting in New Haven, with participation from DEEP’s commissioner, and a TV press conference with remarks from several of the larger dealers. CARA was able to use its substantial local media contacts within Connecticut to secure significant press coverage, while DEEP issued its own press release. Scheduling the kickoff event around the dealers’ meeting ensured that several prominent dealers would be available to promote the program, while the events and press surrounding the kickoff event ensured that dealers would see a publicity benefit from participating. DEEP also showcased the program on the EVConnecticut website and provided dealers with information on how to participate.3 At the conclusion of the program, DEEP and CARA held an EV conference at the state capitol to discuss the importance of electric drive technology. The commissioner of DEEP chaired a panel of regulators, auto manufacturers, and environmental advocates to discuss the benefits of ZEV technology. Several state legislators attended, including the ranking member of the Transportation Committee and Chairperson of the House Energy and Technology Committee. To improve the program, DEEP is looking for a better way to collect sales data and obtain greater buy-in from dealerships and consumers. Additionally, several dealers in the state reported difficulty obtaining 2 CalEPA. “2015 Governor’s Environmental and Economic Leadership Awards Application Instructions.” Available at: http://www.calepa.ca.gov/Awards/GEELA/2015/ZEV.pdf 3 Connecticut DEEP. “Connecticut REVolutionary Dealer Award.” Available at: http://www.ct.gov/deep/cwp/view.asp?A=2684&Q=539780

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eligible vehicles and were unable to participate. The 2014 award winners were New Country Toyota of Westport and A1 Toyota of New Haven. Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program Statistics

While not explicitly devised as a dealership recognition program, the MOR-EV program website, administered by the Center for Sustainable Energy (CSE) includes detailed statistics on rebates issued under the program since it began in June 2014.4 Visitors to the website can use the interactive web app to explore different statistics relating to EV deployment, including total rebates issued to BEVs and two categories of PHEVs at the county and even the zip code level. Additionally, the statistics page lists the EV retailers that sold the most vehicles receiving rebates under the program. As of June 2015, the top EV retailer by rebates in the state is Tesla Motors of Natick, followed by Smart Center Boston in Somerville and Quirk Chevrolet in Braintree. Vermont Governor’s Awards for Environmental Excellence

The Vermont Governor’s Awards for Environmental Excellence have been presented annually since 1993 to recognize Vermont’s leading individuals, organizations, educational institutions, and businesses in conserving the environment, reducing greenhouse gases, and promoting sustainability. Applicants may apply for the award on the Agency of Natural Resources website.5 The application requires that projects be located in Vermont, have been initiated within the past three years and operational for at least one year, and that applicants are in good standing with Vermont’s environmental laws and regulations. The application form also lists a number of project characteristics that will be considered when determining award recipients. Applicants are encouraged to detail the environmental benefits of their project, the motivation behind undertaking it, and what aspects of the project represent an innovative approach to environmental leadership, how it furthers sustainable use of resources, and how it develops partnerships between organizations that can effectively collaborate on conservation. The applicant is also requested to explain the transferability of its project model, the costs and economic benefits of the project, and how the project advances environmental education.6 Two Vermont auto dealerships were recipients of the 2014 Vermont Governor’s Awards for Environmental Excellence: Vermont Lamoille Valley Ford in Hardwick and Twin State Ford in St. Johnsbury. These dealerships invested significantly in promotional campaigns in order to increase sales of plug-in hybrid vehicles. As a result, these dealerships recorded the highest plug-in hybrid

4 MOR-EV. “MOR-EV Program Statistics.” Available at: https://mor-ev.org/program-statistics 5 Vermont Agency of Natural Resources. “VT Governor’s Environmental Awards.” Available at: http://www.anr.state.vt.us/dec/ead/gap/index.htm 6 Vermont ANR. “2015 Vermont Governor’s Awards for Environmental Excellence Application Instructions.” Available at: http://www.anr.state.vt.us/dec/ead/gap/2015%20GA/2015MSWordGAAppForm.pdf

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sales of all Ford dealerships in Vermont, and ranked #2 and #3 among all Ford dealerships nationally in September 2013. Recommended Practices

The dealership recognition programs that have been implemented to date can inform some recommended practices as to how to structure a successful recognition program. Developing the right partnerships and setting the right criteria for success can engage dealerships and motivate them to support ZEV sales.

• Develop relationships with local auto dealer associations

Auto dealer associations have wide networks of contacts among dealerships and can help state agencies to raise awareness and disseminate information about recognition programs. They may also have media contacts that can help to raise awareness of award programs.

• Engage the media and publicize the award program through public events

Auto dealers are strongly motivated by publicity and invest in advertising and other marketing efforts to increase sales. Offering auto dealers an opportunity to raise their profile in the press, on television, and online can encourage buy-in and participation in the effort.

• Think creatively about metrics that encourage wide participation

In order to encourage participation by both large and small auto dealers, Connecticut offered two awards that were tailored to dealerships of different sizes. Another approach might be to offer separate awards for BEVs and PHEVs, encouraging dealers with different product lines to compete among themselves. California and Vermont include partnerships among their award selection criteria, thereby encouraging applicants to engage other organizations and bolster the effort. States might also look for ways to provide training materials to encourage participation among sales staff.

• Reward dealers for supporting the ZEVs beyond the point of sale

The California award asks dealerships to list not only ZEV sales, but efforts in training, outreach, infrastructure deployment, and post-sale support for the vehicles. States that are thinking holistically about ZEV deployment can encourage dealers to do the same.