1. Low Carbon Bus Procurement Proposed Work Plan LowCVP Jonathan Murray 15 November 2007 BWG-P-07-18

2. LowCVP submission to PFV strategy review Encourage R, D&D in low carbon buses  Establish a low carbon transport innovation platform  Grant support for demonstration  Greater use of the Forward Commitment Support the introduction of low carbon buses  National demonstration of low carbon buses  Reform or supplement of BSOG  Empowerment of Local Authorities Stimulate the market for low carbon buses  Taxation system amended to provide meaningful incentives  Encourage public sector bodies to purchase low carbon vehicles

3. LowCVP proposed amendments to low carbon bus targets Milestone for demonstration  100 or more low carbon buses demonstrated in the UK by 2009. Shifting to low carbon buses  600 or more low carbon buses coming into operation per year by 2012. Motivating future improvements  X% of buses coming into operation per year by 2020 will be ultra low carbon buses.

4. Role of the Forward Commitment in achieving market entry Technology Development Product Develop ment Market GrowthMarket Entry Forward commitment Market Volume Income + - Technology Push Demand Pull

5. Low Carbon Vehicle Procurement Programme  Announced as part of the Low Carbon Transport Innovation Strategy  To be launched in April 2008  Initial phase will be on:  Public procurement  Low carbon vans, mini-buses and plug-in hybrid cars  Buses have been carefully considered but not included in first phase:  Potential for significant impact  UK companies could benefit  Complex market  Development of programme:  Wider range of vehicles  Private sector

6. Low Carbon Bus Procurement Project  The purpose of the project is to conduct a feasibility study of how a Forward Commitment for Low Carbon Buses would work in the UK bus market.  The study would provide a blueprint of how to implement a low carbon bus procurement group.  Inform the development of the Low Carbon Vehicle Procurement Programme.  The project is core to the development of the work of the Bus Working Group with in the LowCVP.  Provide a means for the delivering the Powering Future Vehicle Strategy targets for buses.

7. Three elements to the project  Policy Drivers and Customer Interest  Assessment of the regulatory framework and forthcoming policy drivers  Customer interest and ability to turn this into effective demand  Low Carbon Bus Specification  Development of a draft low carbon bus specification  Manufacturer feedback  Financing and Contractual Arrangements  Determine the contractual structure required to deliver a low carbon bus forward commitment  Consider means of financing and incentivising low carbon buses

8. Deliverables and timescales 1.Presentation of primary research  Preliminary results of the primary research conducted to be presented to the LowCVP.  December 2007 2.Integration of the results and preliminary conclusions  Preliminary conclusions drawn from the research to be delivered to the LowCVP.  Week commencing the 7th January. 3.Draft report  Draft report to be presented for comment and approval to the Bus Working Group.  23rd January 2008. 4.Final report  Final report presented to the LowCVP Board for consideration.  7th February 2008.