1. SPONSORED BY: How to Improve Acceptance of E-Bikes in the U.S. – A Federal Advocacy Approach Thursday, September 11, 2014 11:15 am LEVA Educational Seminar Mary Beth McGowan, Government Policy Advisor, Dykema – mmcgowan@dykema.com Eric Fingerhut, Member, Dykema – efingerhut@dykema.com

2. U.S. Market and Barriers Sales of E-bikes in the U.S. are growing, yet lag significantly behind the market in Europe and China. WHY?  Confusion – What are e-bikes?  Infrastructure – Need safe, available roads/lanes and advanced batteries with reliable charging options.  Cost – Significantly higher than traditional bikes.  Public Acceptance – Skepticism exists. 2

3. 3 Existing Federal Laws for Electric Bikes Are Confusing  Safety Standards (P.L. 107-319): Exempts e-bikes under 750 watts/20 mph with fully operable pedals from the definition of motor vehicle only for purposes of motor vehicle safety standards  Standards of Use (P.L. 105-178): With respect to federally-funded trails and pedestrian walkways, Congress prohibited the use of e-bikes except when State or local regulations permit. E-bikes are defined as “any bicycle or tricycle with a low-powered electric motor weighing under 100 lbs, with a top motor- powered speed not in excess of 20 mph.”

4. 4 Understanding P.L. 107-319  Does specify that electric bicycles sold in the U.S. with speeds under 20MPH and motor under 750W simply have to meet consumer bicycle safety standards set by the Consumer Product Safety Commission (CPSC).  Does not treat an e-bike with a motor less than 750W and that travels under 20 MPH as a bicycle for ALL purposes.  Does not regulate the operation of electric bicycles on public rights of way.

5. 5 The Result - Disparate Local Laws and Regulations – Is a Challenge Riders must navigate a myriad of standards related to:  DUI offenses;  Use on public bike paths and lanes;  Age requirement;  Helmet requirement; and  License, Insurance, Registration.

6. 6 Clearing Confusion with Federal Advocacy How to Overcome Disparate State and Local Laws:  Get industry consensus for a definition of e-bike.  Work with the U.S. Congress to enact federal standards of use.  Finalize and agree on proposed standards.  Develop messaging and supporting materials.  Inventory relationships with key Members of Congress.  Organize and delegate outreach to Congress.

7. Infrastructure is a Challenge  Safe Roads – Our shared goal should be a transportation infrastructure and regulation system designed to protect the travel rights of cyclists to every destination. If essential streets are not safe for drivers of vehicles (cars, e-bikes, traditional bikes and others), the prudent response is to make the streets safer or curb the behavior of law abusers, not banish the operators of legal vehicles.  Range Anxiety – Due to the available range on current battery technology and the duration and frequency required to keep batteries charged, potential e-bike users have concerns about how they will keep bikes charged away from home. 7

8. Improving Infrastructure with Federal Advocacy  Support Safe Routes to School Program and changes proposed by Senate Environment and Public Works Committee draft reauthorization of MAP-21;  Support Safe Streets Act S. 2004/H.R. 2468;  Support the Department of Energy’s Workplace Charging Challenge (including business tax credits for electric vehicle chargers); and  Support Department of Energy research and development goals by 2022 to:  Reduce the production cost of an electric vehicle battery to a quarter of its current cost;  Halve the size of an electric vehicle battery; and  Halve the weight of an electric vehicle battery. 8

9. High Cost of E-bikes is a Challenge  The starting point for a quality electric bike can start at $1,000, about three times the cost of a quality bicycle;  More regularly, electric bikes cost in the range of $2,500, probably in excess of two-years worth of public transit fares; and  Some models can cost as much as $5,000. 9

10. Benefitting Cost with Federal Advocacy Expand and/or renew existing tax credits:  Alternative vehicle refueling credits (expired Dec. 31, 2013; expand to include light electric vehicles) – 1) up to $1,000 for homeowner alternative vehicle refueling, including the purchase of a 240-volt Level 2 EV charging station and 2) up to 30 percent of an EV charger purchase, up to $30,000 for businesses;  Electric motorcycle credit – (expired Dec. 31, 2013; expand to include e-bikes) – up to $2,500 to offset up to 10 percent of the purchase price of an electric motorcycle (or three-wheeled EV); and  Electric vehicle credit (available until phased-out; expand to include light electric vehicles) – up to $7,500 based on battery capacity for the purchase or lease of PEVs or plug-in hybrids. 10

11. Public Acceptance is a Challenge  Uncool  Misconceptions  Are they really green? 11

12. Increasing Public Acceptance with Federal Advocacy  Create relationship with and acceptance from traditional cyclist and electrification organizations active in federal advocacy;  Encourage government agencies to adopt electric bikes for use as public vehicles and to set an example (i.e. National Park Service, Capitol Police, Secret Service Police, etc.); and  Pursue an endorsement or photo-op from “Let’s Move”. 12

13. BPSA Electric Bicycle Committee The Bicycle Product Suppliers Association (BPSA), responding to the current and future needs of its members, recently created an Electric Bicycle committee. The committee is working to set priorities in the three areas of BPSA expertise and influence:  Statistics,  Safety, and  Legal/Legislative. Larry Pizzi, Chair (Accell North America and President, Currie Tech) – lpizzi@currietech.com 13