This is an HTML version of an attachment to the Official Information request 'Procurement advice'.

Purpose of report  
This briefing seeks direction from you on the measures you would like progressed as a 
Government-industry package to encourage the uptake of electric vehicles (EVs). It also 
seeks an initial discussion with you at our meeting on 2 November 2015. We would like to 
focus this initial discussion on the A3 in Appendix 2 that summarises the package that has 
been developed with stakeholders. 
The A3 in Appendix 3 is intended for your meeting with the Prime Minister and senior 
Ministers on 11 November 2015. It outlines the options for the package coupled with their 
costs as requested by your office. 
Your previous decisions on measures to encourage the uptake of EVs 
New Zealand will be looking to reduce its transport emissions to help give effect to its post-
2020 greenhouse gas emissions reduction target. If conventional vehicles could increasingly 
be substituted with EVs, New Zealand would reduce its transport emissions without 
compromising individual mobility or economic growth.  
In considering the advice we provided on 26 March 2015 (OC02885 attached), you agreed in 
April that initiatives to encourage the uptake of EVs should include: 
 an information and promotion campaign by the Energy Efficiency and Conservation 
Authority (EECA)  
government branding, promotion and information support for public charging 
a trial of EVs in government fleets. 
At a subsequent meeting on 27 July 2015, you asked officials to work with local government 
and industry to ‘co-create’ a package of measures to encourage the uptake of EVs. You also 
indicated that discussions with these stakeholders could traverse a range of options to 
reduce the risks and costs for suppliers and purchasers of EVs. 
As in our previous advice, we define EVs as being motor vehicles powered by electric 
batteries and plug-in hybrid electric vehicles. Not included in this definition are conventional 
hybrid vehicles, which have an internal battery but need petrol or diesel to run.  
The process we followed to co-create a Government-industry EVs package 
To effect a co-creation policy process Martin Matthews brought together a group of chief 
executives from industry, local government and central government agencies. A list of the 
chief executives involved is in Appendix 1. 
This group met on 10 September 2015 and was tasked with developing: 
joint targets specifying a reasonable level of EV uptake that New Zealand can aspire 
a Government-industry EVs package that parties would commit to, even conditionally, 
to achieve the joint targets 
a governance arrangement that would bring the relevant public and private sector 
parties together on an ongoing basis to drive uptake. 
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On 12 October, members of the Sustainable Business Council, and local and central 
government officials came together to workshop a package. On 28 October, chief executives 
met to consider the draft package of measures to recommend to you. This briefing and the 
A3 in Appendix 2 reflect this draft package of measures. 
The draft package of measures focuses on reducing the barriers that are limiting the uptake 
of EVs 

The draft package of measures aims to reduce the barriers that are limiting the appeal of 
EVs to consumers and businesses. These barriers are the: 
10.1.  relatively higher purchase prices. Although purchase prices have fallen, prices of EVs 
are still higher than their equivalent conventional vehicles. Most consumers do not 
recognise the additional value of EVs, such as their environmental benefits 
10.2.  limited travel range of EVs. The range of pure EVs is generally up to 150 kilometres 
before they require recharging. This makes their use for long journeys less appealing  
10.3.  very limited range of EV models available in New Zealand. The small EV range has 
to compete in the market against the substantially wider range of conventional 
vehicles. Many conventional vehicles offer superior features and good fuel efficiency  
10.4.  information problems. These problems include a lack of awareness of EVs, 
uncertainty about the total costs of ownership (for instance maintenance costs, 
battery life and residual values) and misconceptions about EVs  
10.5.  coordination problems. For example, consumers and businesses may be reluctant to 
purchase EVs without public charging infrastructure being widely available. However, 
the private sector may be reluctant to invest in a comprehensive charging network 
until there is widespread uptake of EVs. 
The barriers of purchase price and travel range will reduce in the medium term. Industry 
experts expect electric vehicles to reach price parity with conventional vehicles between 
2018 and 2025. Battery technology is also likely to improve, extending the travel range of 
EVs. These improvements will make the economic case for adopting EVs more compelling 
for consumers and businesses. 
However, in the absence of government intervention, the barriers relating to the limited range 
of EV models, information and coordination are unlikely to reduce quickly enough for EVs to 
be a credible part of New Zealand’s strategy to reduce transport emissions. 
This is because the information and coordination barriers are to an extent market failures. 
The level of cost and risk that the motor vehicle industry and electricity providers would face 
in addressing them is likely to be prohibitive. The availability of a wider range of models is 
likely to follow the increased uptake of EVs in the New Zealand market, but could be 
improved through government intervention in the short term. 
The draft package of measures 
The A3 in Appendix 2 outlines the draft package. It covers the initiatives that are being, or 
could be, done to increase the uptake of EVs. The package has five elements: 
14.1.  procurement across private and public sector fleets 
14.2.  a contestable fund for innovative projects 
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14.3.  normalisation to make EVs a regular vehicle choice 
14.4.  charging infrastructure 
14.5.  financial incentives. 
Of these elements, stakeholders broadly agree that the Government-industry package 
should focus primarily on the first three elements, as the other two are already in place, or 
underway. Nevertheless, this paper includes measures that would enhance both of the last 
two elements.  
These measures are the three measures that you agreed in April, see paragraph 4 above, 
and six new measures that are discussed in paragraphs 19–62. 
To be included in the proposed package initiatives had to pass the test that they:  
17.1.  will work with the other measures to collectively address the barriers that are limiting 
the appeal of EVs to consumers and businesses 
17.2.  offer benefits in barrier reduction that are likely to outweigh their costs and risks. 
The total cost of the package will depend on the level of ambition under the package. For the 
EVs package to have momentum, we estimate that if all options were included at least $5–
10 million per annum for 5 years would be required. Additional Crown funding would be 
sought for the package as part of Budget 2016. 
Procurement measures to facilitate an increase in the number of EVs in fleet purchases 
Joint procurement for government and private sector fleets 
The key procurement initiative from the co-creation process is to have joint EV procurement 
for government and private sector fleets. This initiative would aggregate vehicle purchases in 
order to achieve lower prices and/or an increase in the number of EV models available. 
The initiative envisages a government agency co-ordinating the joint procurement with a 
commitment from public agencies and private businesses to purchase a set number of EVs. 
The Ministry of Business, Innovation and Employment (MBIE) could act as the co-ordinating 
agency but it would require a clear mandate from Cabinet and, potentially, additional funding. 
The need for joint procurement would diminish with time. It would not be needed once the 
purchase price of EVs nears that of conventional vehicles.  
Joint procurement would be successful if it achieves a price discount, or an increase in 
model availability, that outweighs the costs and risks involved. The risks are that: 
22.1.  even with joint procurement the volume of vehicles purchased may be too low to 
influence purchase prices or model availability  
22.2.  the procurement agent negotiates the procurement of a number of vehicles that are 
then not wanted by their would-be buyers. It could then be left with the costs involved, 
including arranging for the sale of the surplus vehicles 
22.3.  it could reduce the ability of the existing mechanisms of vehicle procurement to 
secure ongoing savings and reasonable delivery options. For instance, the All-of-
Government contract for vehicle procurement could be negatively impacted. 
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We would need to analyse the significance of these issues before this option is progressed. 
The arrangements for joint procurement would also need to be developed.  
We have had initial discussions with MBIE about this initiative. It has advised that it could 
undertake an assessment of the feasibility of the initiative by March 2016 if funding were 
provided. It would need funding because MBIE’s procurement unit operates on a cost-
recovery basis. 
Given the need for further work, if you support this option we advise seeking Cabinet 
agreement in principle for it at this stage.  
A trial of EVs in government fleets 
You previously agreed that an EV trial in government fleets should be considered as part of 
the Government-industry package. In light of the joint procurement initiative we would like to 
discuss with you whether you still want to pursue an EV trial.  
The type of trial we had previously discussed envisaged trialling 24 vehicles in four 
government fleet locations. This would require one-off funding of approximately $500,000 to 
cover the incremental costs of the trial vehicles. Industry feedback was that a trial at this 
level lacked credibility given the level of fleet uptake by leading businesses (for instance Air 
New Zealand, which is converting its whole fleet to EVs where feasible). 
Discussions with MBIE suggest that a trial could be scaled up, for example, by adding an 
additional 24 vehicles each year. To put this in perspective, currently there are over 20,000 
vehicles in the government fleet. Around 4,000 new vehicles are purchased through the All-
of-Government contract each year. About 42 percent of these purchases are for compact 
passenger vehicles, like the Toyota Corolla. 
A financial ‘kickstarter’ for the purchase of EVs in government fleets 
Alongside the joint procurement initiative the Government could consider providing a 
financial ‘kickstarter’ to incentivise the purchase of EVs in government fleets. The kickstarter 
was not discussed during the co-creation process, so is not included in the summary of the 
whole package (Appendix 2) or the summary of options and costings (Appendix 3). 
We know from discussions with MBIE that government agencies are facing difficulties in 
maintaining their current fleets and have been delaying the replacement of vehicles. The 
kickstarter is one way of overcoming barriers to government fleet buyers adopting EVs. 
The kickstarter would involve one-off Crown funding to cover the price differential between a 
conventional vehicle and an EV equivalent. Funding of $1 million would fund around 100 
The key risk with a financial kickstarter is that it could attract criticism regarding the use of 
public money in a constrained fiscal environment.  
This risk could be mitigated by making it clear that the initiative will yield a positive public 
outcome. This outcome is demonstrating to businesses and individuals how New Zealand 
can transition to a lower carbon future.  
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A contestable fund for innovative projects that reduce the barriers to EV uptake 
To maximise the efforts of industry and government in addressing the barriers to EV uptake 
and to encourage innovation a contestable fund could be included in the package. The fund 
would be akin to the Urban Cycleways Programme in that it would co-fund projects 
developed by businesses or local communities.  
In our view, a co-fund is warranted because the barriers require a joint Government-industry 
effort to reduce them. Key to the government role is reducing the risks and costs that the 
motor vehicle industry and electricity providers face in growing demand for EVs. 
Examples of the type of projects that could be co-funded include: 
36.1.  the creation and promotion of branded tourism routes using EVs. On such routes 
tourists could hire EVs, and preferentially park and charge them at participating 
tourist attractions, information centres, cafes and accommodation venues 
36.2.  demonstrations of vehicle types currently not used in New Zealand, such as electric 
vans in commercial fleets. 
The contestable fund would require Crown funding with the actual amount depending on the 
level of ambition sought and the expected impact of EV uptake of any initiatives. In our view, 
an appropriate amount would be in the order of $5–10 million per annum over five years. We 
consider that this amount could co-fund up to 10 to 20 projects.  
The key risk with providing government funding is that it could fund initiatives that local 
government or industry may have provided anyway. This risk would be reduced through the 
co-funding approach. Further, the fund’s criteria would be designed to ensure that only 
initiatives warranting government investment are funded.  
If you support this option the Cabinet paper for the package would seek an in-principle 
agreement to establish a contestable fund. You would then seek agreement on the quantum 
of funding, the criteria for assessing proposals and on the administrative arrangements at a 
later date. 
Normalisation to make EVs a regular vehicle choice 
Having targets for uptake to demonstrate commitment and focus effort 
Targets for EV uptake also warrant consideration. Targets would demonstrate the 
Government’s commitment to reducing transport emissions via EVs. They would also 
provide a tangible way to focus government and industry efforts in this area.  
Targets would contribute to tackling the information barrier by raising awareness of EVs 
among consumers and businesses. This would help to normalise perceptions about the 
purchase of an EV. For instance, by changing the perception of an EV being a risky vehicle 
to purchase to it being a regular vehicle choice.   
For the year ended 30 September 2015, 438 EVs were sold bringing the total number of EVs 
in our light vehicle fleet to 817. This is 0.024 percent of the light vehicle fleet. 
In our modelling, the status quo scenario forecasts EVs being around 12 percent of new 
vehicles sold in 2020. This is about 11,500 vehicles. This means that there will be about 
43,000 EVs by 2020 (including used EVs) which is over 1 percent of the light vehicle fleet. 
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The proposed package would set the following targets for EV uptake: 
44.1.  1,000 EV sales in 2016 
44.2.  5,000 EV sales in 2017 
44.3.  25,000 EV sales in 2019. 
The proposed targets are very ambitious, particularly the one for 2019. We will be stress 
testing these targets with industry representatives on 2 November 2015 using available 
modelling. This is important as all parties involved in developing the draft package want 
targets that are ambitious but still credible.  
As part of this stress test, parties will need to consider how far the joint package will take us 
towards the targets and the respective contributions that would be required from central 
government agencies, local government and business. 
The key risk with specifying targets is that ultimately they may not be met. Non-achievement 
could give opponents an opportunity to criticise Government policy. In our view, however, 
this risk is limited by the fact that the package will be a joint Government-industry one. 
The risk could also be mitigated by stating at the outset that the targets are deliberately 
ambitious and have been set primarily to galvanise effort.   
Other normalisation initiatives in the package 
In addition to targets, the following measures that you agreed to in April will assist with 
making EVs a regular vehicle choice: 
49.1.  an information and promotion campaign by the Energy Efficiency and Conservation 
Authority (EECA)  
49.2.  government branding, promotion and information support for public charging 
Replacing the remainder of the road user charges exemption with upfront payments to EV 

As an alternative to allowing the current road user charges (RUC) exemption to run to 2020, 
we could investigate the option of converting it into upfront payments to encourage the 
purchase of EVs.   
With this option the RUC exemption would end on 30 June 2016. In its place, purchases of 
EVs would come with a one-off upfront payment equivalent to the average amount of RUC 
that would have been paid up to 2020.  
For example, someone purchasing an EV on 1 July 2016 would receive a one-off upfront 
payment of around $2,5001. Each year they would be required to pay RUC like all other 
vehicle owners. Assuming 10,000 kilometres are driven in a year, the annual RUC amount 
would be $620 (GST inclusive). Someone purchasing an EV on 1 July 2019 would receive 
an upfront payment of $620 and pay RUC of a similar amount. 
1 This is based on the existing RUC rate of $62 per 1,000 kilometres (GST inclusive) and an average distance 
travelled of 10,000 kilometres. The actual upfront payment would be $2,480. 
Page 7 of 16 

To ensure current owners of EVs are not disadvantaged EVs registered before the 
exemption expires on 1 July 2016 would continue to be exempt from RUC until 2020. 
This measure would offer a stronger financial incentive for people to purchase EVs than the 
current RUC exemption. Generally, there is more benefit in receiving a one-off upfront 
payment than in being exempt from paying out the same amount of money over several 
years. This reflects the falling value of money in an environment with inflation. 
The option would also be fiscally neutral for the National Land Transport Fund (NLTF). This 
is because the monies needed for the upfront payments would be recovered from RUC. 
However, the NZ Transport Agency would face a small increase in administration costs to 
effect the individual payments.  
The NZ Transport Agency would also need to manage the impact on the NLTF’s revenue 
streams, with upfront payments being made up to five years before they are substantially 
recovered. As discussed later in paragraph 69, our forecasts suggest that between now and 
2020, the foregone annual RUC revenue will increase from $294,000 to $9.5 million. 
Risks and mitigation 
The key risk with this option is that it could raise equity concerns. For example, it could be 
criticised as providing a subsidy to companies and individuals who are financially able to 
purchase EVs without the upfront payment. Although the exemption has the same practical 
effect, this option could re-emphasize the equity issue. 
This risk would be managed by making it clear that this measure, like the others, focuses on 
encouraging an uptake of EVs as a means to reduce New Zealand’s transport emissions. So 
although the option offers private benefit, its purpose serves a wider public goal. 
We tested this proposal with chief executives from industry and government agencies on 28 
October 2015. The reaction was mixed. The general response was that removing the RUC 
exemption to provide an upfront payment would not affect fleet purchase decisions. This is 
because these decisions are largely based on total cost of ownership, which factors in 
upfront and running costs. However, it could make EVs more appealing to private vehicle 
We still need to clarify how upfront payments could be made from the NLTF. Consequently, 
if you are comfortable with progressing this option we advise seeking Cabinet agreement in 
principle at this stage. Final Cabinet agreement would be subject to confirmation that the 
option could be implemented using the NLTF. 
Governance arrangements for the ongoing leadership and coordination of the EVs package 
Stakeholders have expressed support for a government agency to convene a group that 
provides ongoing leadership and coordination of the initiatives in the package. The group 
would consist of seven to eight people and would have representatives from industry, local 
government and relevant government agencies. 
We agree that this type of governance arrangement is desirable. If you support this initiative 
the Cabinet paper would seek agreement to you deciding on the detail of the governance 
group. This includes its terms of reference, its members and its administrative arrangements.  
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We advise against the EVs package including an extension of the road user charges 

Currently, light EVs are exempt from RUC until 30 June 2020. We do not recommend 
extending the exemption beyond 2020, as it would increasingly compromise the user-pays 
basis of the transport system. 
When Cabinet agreed to the exemption, it was on the basis that it would apply until EVs 
make up 1 percent of the vehicle fleet. An end-date of 2020 was selected as the year most 
likely to coincide with this level of EV uptake. 
The Ministry has revised its forecasts for sales of EVs. The main factors impacting on the 
forecasts are anticipated price reductions in EVs, and the greater availability of new EVs on 
the market.  
Our revised forecasts still support the view that EVs will make up 1 percent of the fleet by 
2020. However, the revised forecasts show significantly increased sales of EVs from 2019 
onwards, than were previously forecast. 
With such an increase in uptake, a RUC exemption would mean that the cost burden of 
building and maintaining the road networks would fall on a smaller proportion of road users. 
This would raise equity issues. It would also exacerbate revenue pressures and 
consequently limit or delay desirable transport investment. 
Currently, the RUC exemption results in foregone annual revenue of around $294,000. With 
the uptake of EVs increasing we estimate that by 2020 foregone annual revenue could be 
around $9.5 million. By 2025 it could be about $77 million rising to around $217 million by 
2030 if the exemption remained in place. 
If the exemption was extended this level of foregone revenue would have to be recovered 
from other road users. Alternatively, the National Land Transport Programme of investments 
would have to be reduced. 
Using National Land Transport Funding to support charging infrastructure 
You asked for advice on whether charging infrastructure for EVs could be funded through the 
Having charging infrastructure in place for EVs is a key part of supporting their uptake. This 
is because it addresses the range anxiety associated with EVs. Range anxiety limits a 
consumer’s desire to purchase and use an EV.  
Funding for charging infrastructure could be provided through the NLTF via an amendment 
to the Government Policy Statement (GPS). Such an amendment would either create a new 
activity class to fund the infrastructure or allow funding to be provided from an existing 
activity class. 
In our view, the option to provide NLTF funding for charging infrastructure is best progressed 
as part of the development of GPS 2018. This is because it will allow decisions about the 
role and level of NLTF funding to be informed by the scale and reach of private sector 
investment over 2016. 
Getting the role and level of NLTF funding right is important. This is because parties such as 
Mighty River Power, Vector and have made it clear that they are willing to 
invest in charging infrastructure without government financial support. 
Page 9 of 16 

However, they do want support to clarify the consenting process and to promote the 
charging infrastructure they establish. They also see a potential need for government 
investment in charging infrastructure at locations where commercial action is not viable. 
Public investment could provide infrastructure necessary to complete a network. 
The draft package of measures has risks as has using a co-creation process 
We have noted the specific risks of each measure in the relevant sections above. As well, 
across the package there is a risk of role creep on the part of government. Specifically, there 
is a risk that government will invest public resources in reducing barriers that legitimately are 
the private sector’s to address. 
In our view, this risk is being managed through the design of the initiatives. This design limits 
the Government’s role to: 
77.1.  the provision of independent information about EVs and the role they can play in 
reducing transport emissions 
77.2.  facilitating the resolution of co-ordination challenges, through lowering the costs and 
risks of private sector investment, for a limited period of time only. 
Using a co-creation process to develop the package has also brought a level of risk. It has 
meant that we have engaged with a limited group of stakeholders. Parties not included in the 
process could think that their potential contribution is going unrecognised. 
This risk will be managed by having the delivery agencies engage with interested parties as 
the EVs package is implemented. This opportunity for engagement will be emphasised in 
media announcements about the package. 
Suggested process and timeline from here 
We are seeking to have an initial discussion with you about the measures you want included 
in a Government-industry package at our meeting on 2 November 2015. We would like to 
base this discussion on the A3 in Appendix 2.   
Following our discussion, we will make any needed amendments to the A3 in Appendix 3. 
This A3 is intended for your meeting with the Prime Minister and senior Ministers on 11 
November 2015. It outlines the options for the Government-industry package coupled with 
their costs.  
We will also finalise the draft Cabinet paper that we have been preparing.  
In terms of timing, in our view it would be desirable to gain Cabinet agreement to a 
Government-industry package in early December 2015. This would enable the package to 
be announced in New Zealand at a time that coincides with the 2015 Paris Climate 
Conference, which will take place over 30 November to 11 December 2015. 
Announcing the package over the time of the 2015 Paris Climate Conference would ensure 
that the package attracts maximum public attention. This in turn would enhance your 
opportunity to communicate its purpose and content.  
To enable the EVs package to be announced in early to mid December 2015, the Cabinet 
paper would have to be considered by the Cabinet Economic Growth and Infrastructure 
Committee by Wednesday 2 December 2015.  
Page 10 of 16 

Ideally, an announcement would involve the wider group involved in the co-creation process. 
The Sustainable Business Council has already indicated that it is willing to support a joint or 
parallel announcement. 
To date, consultation with government agencies has been limited to those involved in the co-
creation process. We seek your agreement to consult other government agencies with an 
interest in the EVs package. 
Consultation would be done by circulating the draft Cabinet paper that we have been 
preparing. The draft to be sent to government agencies will reflect our 2 November 2015 
The recommendations are that you: 
consider the A3 in Appendix 2 that summarises the package that has been 
developed with stakeholders  
indicate following our discussion on 2 November 2015, which of the 
following initiatives you would like progressed as a Government-industry 
package to encourage the uptake of EVs: 

allowing joint EV procurement for government and private sector fleets 
having a trial of EVs in government fleets 
providing a financial ‘kickstarter’ for the purchase of EVs in government 
establishing a contestable fund for innovative projects that reduce the 
barriers to EV uptake 
having an information and promotion campaign by the Energy 
Efficiency and Conservation Authority 
establishing targets for EV uptake, with the targets being those outlined  Yes/No
in paragraph 44 
providing government branding, promotion and information support for 
public charging infrastructure 
Page 11 of 16 

replacing the remainder of the road user charges exemption with 
upfront payments to people, or companies, who purchase EVs  
having governance arrangements for the ongoing coordination of EV 
policies and activities 
note that initiatives (b)(i) and (b)(viii) require further investigation and we 
envisage Cabinet agreement only being sought in principle at this stage 
note that initiative (b)(iii) has not been discussed with stakeholders as part of 
the co-creation process and could be considered as part of initiative b(i) 
indicate whether you would like initiative (b)(iii) to be included in the 
package for discussion with Senior Ministers on 11 November 2015 
note that in our view an appropriate amount for the contestable fund would 
be $5–10 million per annum over five years. However, we seek direction 
from you as to the quantum you consider desirable 
agree that the option of extending the road user charges exemption for EVs 
beyond 2020 not be progressed  

agree that the funding of charging infrastructure for EVs be considered as 
part of the development of GPS 2018  
note that it would be desirable to announce the EVs package in New 
Zealand during the time of the 2015 Paris Climate Conference 

agree that a Cabinet paper be considered by the Cabinet Economic Growth 
and Infrastructure Committee on Wednesday 2 December 2015, or sooner if 
you would like, to enable an announcement to be made during the Paris 
Climate Conference,  
agree that the government agencies with an interest in the EVs package be 
consulted via a draft Cabinet paper that will reflect our discussion on 2 
November 2015 
Page 12 of 16 

Appendix 1 
The chief executives of the organisations involved in co-creating the EVs package 
Name, organisation 
Penny Nelson, Sustainable Business Council 
Fraser Whineray, Mighty River Power 
Simon Mackenzie, Vector 
represented at the meetings by Brian Ryan 
Christopher Luxon, Air New Zealand 
represented at the meetings by James Gibson 
Greg Skelton, Wellington Electricity 
Dennis Barnes, Contact Energy 
represented at the meetings by Todd Spencer 
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Mark Gilbert, Drive Electric 
Eric Pyle, Drive Electric 
Brian Gibbons, The New Zealand Automobile Association 
represented at the meetings by Mark Stockdale 
Malcolm Alexander, Local Government New Zealand 
represented at the meetings by Tom Simonson and Helen 
David Crawford, Motor Industry Association  
Graeme Peters, Electricity Network Association 
David Smol, Ministry for Business Innovation and Employment 
represented at the meetings by Jamie Kerr 
Page 15 of 16 

Vicky Robertson, Ministry for the Environment 
represented at the meetings by Peter Brunt 
Mike Underhill, Energy Efficiency Conservation Authority 
Martin Matthews, Ministry of Transport 
Page 16 of 16 

Appendix 3: Summary of electric vehicle package 
Target audience 
Implementation considerations 
Expected outcome 
Easy and quick once agreed. Can be 
The electric 
NZ Inc targets 
publicised through usual 
Would set the level of ambition and 
vehicle industry 
Government setting NZ Inc targets for electric vehicle uptake 
for electric 
communication channels and 
No direct costs. 
help focus efforts of all parties to 
and general 
together with local government and the business sector. 
vehicle uptake 
overseen by governance group (see 
achieve a common goal.  
Local authorities 
$5-10 million per annum for 5 years. 
Would assist in overcoming 
An EV programme or fund (modelled on the Urban Cycleways 
and businesses 
Moderate effort to implement once 
The overall quantum of the fund 
information and coordination 
Programme) to co-fund projects that encouraged the uptake of 
problems in the market and help to 
(chiefly in the 
funding and governance is confirmed.  depends on level of ambition and 
electric vehicles. This option would encourage the market and local 
normalise EVs.  
transport, energy 
Could be established within 6-12 
criteria, but co-funding would 
communities to develop innovative projects to address the market 
and tourism 
potentially be in the order of $250,000 
failures/barriers that are limiting the uptake of EVs. 
Could attract additional models of 
to $1 million per project. 
EVs to New Zealand. 
Moderate effort to implement once 
funding and governance is confirmed.  $500,000 is estimated to cover the 
Would demonstrate the functionality 
A trial of EVs in the government fleet. An EV trial would provide 
Could be established within 6-12 
incremental cost of 24 vehicles in four  of EVs to government and other fleet 
agencies in the 
valuable information to government and private fleet buyers, and 
months. Would requiring going out to 
government fleet locations, including 
first instance, but 
enhance the credibility of any other Government action on electric 
market with a request.  
charging infrastructure and monitoring 
information could 
vehicles. More aggressive options for government fleet procurement 
Would help dispel myths about EVs 
costs. The trial could be scaled up if 
benefit fleet 
would be revisited following a trial.  
Could repeat the trial year on year 
and actively show Government 
buyers generally. 
adding a further 24 vehicles each 
confidence in EVs. 
year for the life of the trial. 

Joint public/private EV procurement for fleets. Under this option, 
the a government agency would coordinate a joint EV procurement 
Moderate effort (3 months) to 
Funding for investigation of feasibility.  Would help to reduce price and may 
process, with a commitment from public agencies and private 
investigate feasibility once funding 
If feasible, funding for procurement 
result in additional models of EVs 
business to purchase a set number of EVs. The feasibility of this 
and governance is established.  
(central and local) 
work on a cost recovery basis and the  being introduced to New Zealand.  
option is undetermined, therefore only in-principle agreement would 
and business 
Likely high effort (12 months) to 
additional cost of EVs for the 
be sought in the short-term. 
Would also help to build the early 
fleet buyers. 
implement once feasibility is 
government fleet (to be determined, 
Joint procurement could potentially target new and near-new EVs, 
market for peripheral EV services and 
determined. Would require the 
depending on the bulk price 
depending on demand. Initial estimates are that the public and 
goods e.g. trained EV technicians. 
procurement agent to go to market. 
private sector would commit to purchase 500 EVs each, however this 
would depend on the price and conditions negotiated.  
An information and promotion campaign by EECA. A campaign 
EECA can deliver this campaign. It 
Would help overcome information 
Fleet owners, 
A campaign focused on fleet 
would focus on fleet buyers and industry engagement. The campaign  has already laid the groundwork for 
problems, particularly among fleet 
lease companies, 
managers and industry engagement 
would seek to address information barriers, facilitate coordination of 
developing a campaign so it would be 
buyers. The campaign would provide 
large businesses, 
would cost about $850,000 per year. 
and promotion 
the sector and enhance the visibility of other measures to address 
quick (less than 6 months) to 
verified information to buyers to 
and government 
Funding could come from reserves 
barriers to uptake. Clear success measures would be established for  implement once funding and a 
overcome myths and encourage 
held by EECA and/or reprioritisation. 
the campaign to ensure that it achieves its objectives. 
mandate is confirmed. 
behaviour change. 
The Government could support the private sector to establish a 
Would overcome barriers to installing 
No additional funding required. Costs 
network of EV charging stations by offering branding, information 
Moderate effort (less than 12 months) 
public EV charging infrastructure, 
support for 
Fleet buyers and 
will be covered by baseline 
and promotion support to the private sector. This would include 
to implement once a mandate is 
help promote development of a 
motoring public. 
departmental funding in the first 
clarifying the regulatory regime that applies to the installation of 
cohesive and visible network and help 
charging infrastructure on public land. 
create visibility. 
Central and local 
government, and 
The governance group is likely to involve joint leadership from 
Relatively easy and quick (less than 6 
Would be accountable for 
business sector 
central and local government, and business with a total of 8 
months) to implement develop Terms  Some funding could be required for 
implementation of the EV package, 
for joint 
members. Terms of Reference for the governance group would need  of Reference and establish the 
meeting attendance and costs. 
and help drive ongoing uptake as the 
responsible for 
to be established and approved by Minister(s).  
governance group. 
market continues to evolve.