NEWS

The Department of Trade and Industry (DTI) proposes a number of measures beyond incentives that would broaden the use of electric vehicles (EV).

A draft study of the DTI crafts an EV program which intends to create EV demand by tapping public transportation and industries operating vehicle fleets.

The recommendations assume the price of EVs would significantly go down through tax and duty exemptions.

One recommendation called “EV fleet share regulation” requires cargo logistics companies, food delivery companies, tour agencies, accommodation facilities / hotels and utility companies to allocate 5 percent of the fleet for battery EVs (BEVs) or pure hybrid EVs (PHEVs).

Tour companies are required to maintain a minimum of two to three units of EVs out of the 10 units required for franchise issuance and maintenance to incentivize industry adoption.

Another recommendation calls for the introduction of minimum EV share in public transport.

The draft said company-owned city buses and taxis should have at least five percent EVs in their fleets.

To do this, existing bus and taxi companies would need to reach the required balance of electric buses and EV taxis to be granted franchise renewal or additional internal combustion engine vehicles (ICEV) franchises.

New operators would need to allocate at least 5 percent of their fleet to EVs to be granted licenses.

For jeepneys, the paper recommends to lock-in all routes in central business districts (CBDs) and other flat and highly populated areas to e-jeepney services only.

“The implementation of e-jeepneys in the areas specified translates to more significant health benefits and higher potential for on-board investments, which would augment fare revenues,” the study said.

The recommendation will also apply to tricycles where a certain percentage share of new franchises for release in selected routes will be for e-tricycles only.

In the case of taxis, the study recommends to extend age limit of EV taxis to 15 years and for premium EV taxis to 7 compared to the 10-year age limit imposed on ICE taxis

Transportation Network Vehicle Services (TNVS) will also be included under the scheme..

The study recommends that the Land Transportation and Franchising Board limit the approval of new TNVS franchise applications to EVs to those which have ffive percent of the whole fleet are EVs.

In addition, public transport services in special zones, e.g. Clark and Subic Freeport areas, and tourist-populated portions of resort islands, e.g. Boracay, Puerto Galera, El Nido, could be locked-in to EVs only.

Government would also be tapped through a government EV procurement program.

The government purchases more than 12,000 vehicles annually and the study recommends at least 10 percent of these be exclusively allotted to EVs initially, with gradual increases in share over time.

In addition to tax and duty exemption, the study proposes to offer fringe benefits for EV use.

These include exemption from toll, number coding and annual registration; EV-only roadside parking slots in commercial centers and CBDs; 50 percent reduction on government transaction fees, e.g. census documents, registration certificate, driver’s license renewal, among others.

Source: Malaya.Com