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Federal Policy Opportunities to Promote Electric Bikes and Light

Electric VehiclesFriday, September 24, 2010 8:00 am PST

Mary Beth McGowan, Government Policy Advisor, International Cycling Law Association and Dykema

(202) 906-8631; mmcgowan@dykema.com

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Issues to Address

Culture

Infrastructure

Technology

Regulation

In many cases, legislation or incentives addressed in this presentation could benefit electric bikes and light electric vehicles, but they do not specifically mention them.

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Electric Bike and Light Electric Vehicle Champions

Bi-Partisan Congressional Bike Caucus: Chaired by Congressmen Earl Blumenauer (D-OR) and Thomas Petri (R-WI), the goal is to promote policies that aim to integrate bicycling as an attractive transportation and recreational alternative. Whatever the solutions proposed, their implementation in livable communities requires a process in which grassroots involvement helps create and solidify partnerships comprised of civic and business organizations, state, local and federal governments. The Bi-Partisan Congressional Bike Caucus is supported by over 160 Members, representing 43 states and the District of Columbia. www.bikeleague.org/programs/bikeadvocacy/bike_caucus_1.pdf Bi-Partisan Senate Bike Caucus: Similar to the Congressional Bike Caucus, the Senate Bike Caucus also seeks to promote cycling.Sponsors of P.L.107-319 which defined the 'electric-assisted bicycle' as a non-motorized vehicle (i.e. bicycle) and placed it under the jurisdiction of the Consumer Product Safety Commission (rather than the Department of Transportation): Reps. Reps. Stearns (R-FL), Blumenauer (D-OR), Oberstar (D-MN), Sen. Wyden (D-OR)

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Culture Change: Transportation/Smart Growth Initiatives

Several legislative proposals promote “smart growth” policies and emphasize cycling as a mode of transportation in addition to its common use as a form of recreation.

The Livable Communities Act (S. 1619)

The Complete Streets Act (S. 584, H.R. 1443)

The Green Routes to Work Act (H.R. 3271)

The Safe Routes to School Act (H.R. 4021)

The Active Community Transportation Act (H.R. 4722)

These bills could potentially be included in comprehensive surface transportation reauthorization legislation that is expected during the 112th Congress.

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Culture Change: Transportation/Smart Growth Initiatives

Under President Obama, the U.S. Department of Transportation (DOT) has increasingly encouraged bicycle and pedestrian accommodation to be included in federal, state and local transportation policy and planning.

On March 11, 2010, Secretary LaHood signed a policy statement that reflects DOT’s support for the development of fully integrated, active transportation networks. It recognizes that walking and bicycling foster safer, more livable, family-friendly communities; promote physical activity and health; and reduce vehicle emissions and fuel use. It recommends transportation agencies to plan, fund, and implement improvements to their walking and bicycling networks, including linkages to transit. It also urges transportation programs and facilities to accommodate people of all ages and abilities.

While beneficial to electric bikes, the policy statement does not specify them.

For more information see www.dot.gov/affairs/2010/bicycle-ped.html

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Culture Change: Obesity Initiatives

The President and First Lady have both launched initiatives aimed at increasing physical fitness, promoting nutrition and reducing obesity in adults and children.

The President’s Challenge (www.presidentschallenge.org/index.shtml)

Let’s Move (www.letsmove.gov/)

These programs could provide an opportunity to promote electric bikes as solutions to increasing physical activity among all age groups.

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Culture Change: Carbon Regulation

Mandating a price on carbon emissions by implementing a federal cap-and-trade program could incentivize the use of light electric vehicles.

Prospects for federal legislation are grim, but the U.S. Environmental Protection Agency (EPA) is preparing to regulate tailpipe emissions as well as emissions from major stationary sources.

Electric bikes and light electric vehicles could play a role in helping reduce vehicle miles travelled and resulting carbon dioxide emissions.

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Culture Change: Federal, State and Local Government as a Testbed

It is common for government to act as an initial customer to jumpstart an industry. This provides and opportunity to promote electric bikes and light electric vehicles within federal, state and local governments to create a market.

Police and Fire Departments

Parks and Recreation

General use public vehicles

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Infrastructure Investment: Tax Incentives

Current federal tax incentives for electric vehicle purchase and infrastructure investment do not apply to electric bikes or light electric vehicles, but the possibility exists to expand current credits or model similar credits for light electric vehicles after them.2- or 3- wheeled vehicles - 10% tax credit for 2- or 3-wheeled vehicles (up to a maximum of $2,500 tax credit on vehicles costing $25,000 and above). Eligible vehicles must have a minimum of 2.5 kWh of batteries. Expires Dec. 31, 2011; possibility for renewal/expansion.Conversion Kits - 10% tax credit for plug-in conversions with a maximum credit of $4,000 (on a $40,000 conversion expense). Expires Dec. 31, 2011; possibility for renewal/expansion.Charging Stations – 50% tax credit equal for the cost to install an EV charge station (as well as other alternative fuel stations), with a maximum $2,000 credit for each station installed. Businesses may take tax credits up to a maximum $50,000 credit for larger installations. Applies to qualified equipment installed before the end of 2010; possibility for renewal/expansion.

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Infrastructure Investment: Electrification Legislation

Aside from legislation promoting lifestyle/cultural change, there is also pending legislation to directly stimulate vehicle electrification. Yet, not many (if any) of the bills include electric bikes and other light electric vehicles in their programs.

Promoting Electric Vehicles Act (S. 3495)

Charging America Forward Act (S. 3715)

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Infrastructure Investment: Federal Research & Development

The U.S. Department of Energy (DOE) is the lead federal department charged with R&D. Most DOE initiatives are targeted at vehicle batteries, yet it is commonly acknowledged that much advancement for larger vehicle power storage is built upon improvements to electric bike and light electric vehicle storage capabilities.

The goal of DOE’s lithium-ion research effort is to quadruple the range and double the energy density of these batteries within the next four years while extending the battery life to greater than 10 years.

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Infrastructure Investment: Federal Research & DevelopmentThe American Recovery and Reinvestment Act (ARRA) committed significant resources to battery development:

$2 billion committed to manufacture advanced batteries and electric drive components in the U.S. – 20 battery plants expected to be operational by 2012 and by 2015, when they are operating at full capacity, they are anticipated to produce 20% of the world’s lithium ion batteries (compared to zero advanced battery manufacturing capabilities in the U.S. in 2008)[1]

$400 million from the Transportation Electrification program is supporting electric vehicle deployment programs, including expansion of charging infrastructure – over 20,000 electric vehicle charging stations are expected to be deployed by 2012 (compared to less than 500 today)[2]

[1] The Recovery Act: Transforming the American Economy through Innovation, The White House, August 2010.

[2] Ibid.

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Technology Advancements: Lithium Batteries

Lithium batteries offer benefits over traditional lead acid and nickel metal hydride batteries. They are lightweight, maintenance free, have a longer life and can be charged quickly.

They are, however expensive and can be unstable so must be used with a battery management system to maintain the stability of the chemicals, charge and temperature within each Lithium cell.

Battery Development issues:Range - is limited to around 18–25 miles although improvements in battery technology are pushing this up to 40 miles in some cases.Charge - Batteries have to be regularly charged taking from 2 to 8 hours depending on battery type.Cost - New battery costs can be high.Size/Weight - Electric bikes are heavy, especially cheaper ones using lead acid batteries which give a total bike weight over 30 kg. This can make pedaling without assistance difficult and carrying the bike a real strain.

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Technology Advancements: Lithium Batteries

Battery Recycling issues:

More recycling options are needed. Disposal of old batteries offsets some of the positive green transport advantages.

Battery Transport/Safety issues:

Regulation of chemicals and safe transport procedures (CPSC and DOT).

General Trade Issues (China):

China has regularly been accused of manipulating its currency to make U.S. goods more expensive in China and Chinese goods cheaper in the U.S.

The current and past Administrations have been reluctant to take aggressive action against China which is an important trading partner. Once again, China was not listed as a currency manipulator in the latest trade report.

Both Democrats and Republicans in Congress are pressuring the Obama administration to be more tough with China over its trade practices.

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Safety/Regulatory Issues

As of December 4, 2002, electric bikes were determined by federal law to be regulated as bicycles. This law applies if:

The electric bike has less than a 750 watt motor;

The pedals are functional; and

The maximum speed is less than 20 mph.

State law, however, can set usage guidelines, such as where electric bikes are permitted and where they are not; helmet usage; license and minimum age requirements; as well as others.

For more information on individual state laws, see www.pedegoelectricbikes.com/electric_bicycle_laws/46

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