This report is PUBLIC [NOT PROTECTIVELY MARKED] Agenda Item No. 14 West Midlands Integrated Transport Authority 28 January 2015 Report title OLEV Funding Opportunities In forward plan No Accountable employee(s) Laura Shoaf Tel Email Strategic Director for Transport 0121 214 7444 laurashoaf@wmita.org.uk Recommendation(s) for action or decision: The Authority is recommended to: i. ii. iii. iv. Note the funding opportunities from the Office for Low Emission Vehicles (OLEV) for Go Ultra Low City Status, Ultra Low Emission Taxis fund and Green Bus fund; Note that the Policy & Strategy Team coordinated a Metropolitan Expression of Interest for Go Ultra Low City in partnership with Local Authorities, LEPs and other stakeholders. This was submitted to OLEV on 31 December, this is set out in Appendix 1; Note Birmingham CC and Coventry CC also submitted complimentary bids for Go Ultra Low City Status; Receive an update on any final bids to be submitted to OLEV as further technical work is produced. 1.0 Purpose 1.1 Brief members on the West Midlands position as a key area for the promotion and development of new Ultra Low Emission Vehicles (ULEV), technologies and infrastructure and note the OLEV Funding opportunities arising from the Autumn Statement on December 3 2014. 2.0 Background 2.1 The West Midlands Metropolitan Area is home to a critical cluster of the UK’s most important and biggest manufacturing businesses and leading centres of advanced engineering research, which presents huge economic and transport opportunities in the future. 70% of all UK low carbon vehicle research and development occurs in the region. 2.2 For example, Coventry has been leading the way to become a global Research and Development Hub. With these and other national partners it has developed a comprehensive concept for ‘Electric City’ and a programme of activity for integrated mobility, securing a range of funded projects to support innovation in transport. This has Report Pages Page 1 of 3 This report is PUBLIC [NOT PROTECTIVELY MARKED] the involvement of its two universities, the national Manufacturing and Technology Centre, JLR and the Warwick Business School. 2.3 The Advanced Propulsion Centre has recently announced that it will be based at Warwick University in Coventry and Coventry was also successful as part of a consortium with Milton Keynes, JLR, Mira, RDM, Ford, Tata and others in a bid for ‘UK Autodrive’. Coventry University also coordinates the West Midlands Low Carbon Vehicle Technology Project. 2.4 Furthermore, Birmingham Connected, launched by the Transport Secretary in November 2014, also promotes the creation of Low Emission Zones, the wider roll out of Electric and Low Emissions Vehicle infrastructure, Green Travel Districts and the role of technology to bring together low emission vehicles and public transport. 2.5 The West Midlands has been an early adopter region for EVs since the late 2000s when EVs were first introduced into the UK as technology demonstrators through projects. The West Midlands has been involved in the delivery of Electric Vehicle charging infrastructure at a number of our Park & Ride sites through the Plugged in Places Midlands Programme managed by Cenex. Alongside the work on supporting Electric Vehicle infrastructure, Local Authorities, Centro/PTE and Bus Operators have worked closely on many Green Bus Fund rounds. The Midlands also has one of the most comprehensive vehicle charging networks in the country with over 700 charging points. Although a large network, there is still some way to go with interoperability and ease of use for the end user. 3.0 Progress 3.1 In December 2014, OLEV published guidance for submissions to its Go Ultra Low City status fund. It also published guidance for its Ultra Low Emission Taxi fund and green Bus Fund. Headline areas of the funds are as follows: ‘Ultra Low City Status’ Government will make up to £35m available to the 2 to 4 cities that commit to supporting a step change in ULEV adoption in their areas through measures like access to bus lanes, ULEV car club support, infrastructure for residents, parking policy and changing their own fleets. These cities will lead the way in increasing uptake through improving the offer to businesses and consumers and will become international exemplars. ‘Ultra low emission taxis’ Government will make at least £20m available to local authorities who commit to supporting a step change in cleaning up the taxi fleets in their areas through the introduction of ULEV taxis. ‘Low emission buses’ Government will commit at least £30m from 2015 to clean up bus fleets. This could put over 1,000 new low emission buses onto the roads. Report Pages Page 2 of 3 This report is PUBLIC [NOT PROTECTIVELY MARKED] Consumer grants to support ULEVs Government will commit at least £200m in the period 2015-2020 to bridge the additional cost of ultra low emission cars. 3.2 OLEV has encouraged areas that a comprehensive package of support could be put together and developed further. To exploit the West Midlands leading position as a leader in low carbon vehicle technologies, a Metropolitan Area Expression of Interest was developed by the Policy & Strategy Team. 3.3 Therefore, a Metropolitan Area Expression of Interest was submitted to OLEV on 31 st December, which is set as Appendix 1. 3.4 Birmingham CC and Coventry CC also submitted complimentary bids for Go Ultra Low City Status. An officer working group has been established to work up next phase ‘screening phase bid’ to ensure any Metropolitan Area interventions are coordinated and deliverable. 4.0 Next Steps 4.1 Key Dates December 31 – Deadline for notice of application February 20th – Deadline for submission of screening phase bids Mid-March – Announcement of a shortlist of cities who have passed the screening phase August 31 – Deadline for submission of final bids September/October – Announcement of 2-4 winning cities 4.0 ITA Treasurer Comments 4.1 Currently there is no financial commitment required from the ITA for this grant. This will be kept under review as the next step stages unfold and should this change then this will need to be incorporated into future proposals and decisions 5.0 ITA Legal Comments 5.1 For the purpose of accessing the funding streams discussed in this report, the Authority will need to be sure that such funding is compatible with state aid provisions as it relates to the European internal market and Competition law. Report Pages Page 3 of 3