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WORDWIDE SITUATION OF LOW - SPEED VEHICLES

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					WORDWIDE SITUATION OF
  LOW-SPEED VEHICLES




                         Prepared for
      the Ministry of Transportation
                          of Québec


                                  By
             the Québec Advanced
            Transportation Institute



                         March 2008




                              i
REPORT DEVELOPMENT TEAM



WRITERS
Véronique Lamy, Project Manager, ITAQ
Marc Hudon, Consultant

With the special contribution of Michel Gou, P.Eng., Director of Road Safety, École
Polytechnique de Montréal, for Part 7: “The LSV and safety”.



COORDINATION
Hugo Marsolais, Eng., Director of Operations, ITAQ
Véronique Lamy, Project Manager, ITAQ


RESEARCH
Marc Hudon,
Consultant Fanny
Thiffault, Eng.


REVIEW
Pierre Tison, Manager, ITAQ
François Adam, Eng., ITAQ




NOTE
The opinions expressed in this report are those of the authors and do not
necessarily reflect the positions of the Ministry of Transportation of Quebec.




                                                                                      ii
SUMMARY

BACKGROUND

In 2000, Transport Canada defined and regulated the technical standards of a new class of vehicles: The Low-
Speed Vehicle (LSV). Each province must regulate the rules of the road. In British Columbia, the LSV is subject to
provincial regulations and may be driven on certain roads in the province. In Ontario, the LSV is allowed in
provincial parks, following the passing of Bill 169 accepting pilot projects. Finally, Quebec passed a similar Bill (Bill
42) in order to study the introduction of these vehicles on the roads as pilot projects.

MANDATE

The objective of this document is to provide the most recent information on the evolution of LSV in the regions
studied and to identify the trends toward the integration of these vehicles in the ordinary traffic flow. The United
States, certain European Union countries, Japan and Australia were targeted because of their experiences with
this type of vehicle. Technical standards, traffic rules, the market, road accident data will be studied in detail and
the opinions of specialists will be reported.

REGULATIONS, STANDARDS AND RULES OF OPERATION

In the United States, the LSV is a four-wheel vehicle with a maximum weight of 1,361 kg whose speed may not
exceed 25 mph (40 km/h). Its concept originated in the "gated communities", however it is increasingly entering the
urban environment, like for example the town of Lincoln (California) that established a special transportation plan
using more than 600 LSV. Nowadays, the vast majority of the states accept LSV to circulate on roads with a 35
mph maximum speed. LSV must meet all basic technical standards according to standard FMVSS500. Drivers
must have a vehicle driver’s licence. Recently, the United States created a new class of vehicles: the “medium
speed vehicle” that can operate at a higher speed, 35 mph (56 km/h) and that has new technical requirements.

In Canada, the LSV closely resembles the American definition with the obligation to have an electrical engine and
to produce no emissions. Recently, Transport Canada published an amendment to include small trucks in the LSV
category as well as new specifications such as mass and the slow-moving vehicle emblem. Each province must
regulate traffic rules, including registration and licences.

In Europe, the LSV counterpart, called light four-wheeler or more colloquially, the "licence-less car” (LLC), is
regulated by European standards. It has been included in the moped class, with a maximum weight of 350 kg
(without batteries if it is electrical), a 4 kW engine and a maximum speed of 45 km/h. Quadricycles are almost
exclusively propelled using Diesel fuel with a consumption of 3.5 l/100 km. Technical standards are more
demanding than those in North America. LSV may travel on roads of maximum speed of 90 km/h. They are
used mostly in rural areas, by elderly people, to compensate for the absence of public transit. In 2007,
European regulations governing the AM category (2, 3 and 4 wheels of maximum 50 cc) imposed a
mandatory theory test licence to drive these vehicles. Each state member may then add practical tests and
set the age for obtaining a licence between 14 and 18 years.




                                                                                                                      iii
In Japan, this type of vehicle is included in the category of “motorized 4-wheel bicycles” that has four
classifications according to the engine horsepower. Class I includes vehicles with a maximum speed of 45 km/h
that can operate on roads of maximum speed of 30 km/h while Class II vehicles, with a maximum speed of 60
km/h, may operate on roads of maximum speed of 50 km/h. A licence in the category “motorcycles and
scooters” is required and available beginning at the age of 18 years.

In Australia there are no special regulations for this type of vehicle that falls under the passenger vehicles
regulations. Pilot projects must be tested to evaluate safety on roads of maximum speed of 70 km/h.

THE MARKET

The low-speed vehicle propelled by an electrical engine has appeared in the United States. GEM, a leader on the
market, sold more than 40,000 LSV during the last ten years. We have identified ten Generation II LSV
manufacturers.

Three manufacturers are based in Canada: Dynasty since 2001, Zenn Motor since 2006, both of whom offer an
“urban vehicle" concept product and Nemo Nev that is marketing a small truck.

The European market has existed for almost 25 years and includes approximately 300,000 quadricylces in
circulation in several member States. Almost half are in France, where the LSV expanded initially. Annual sales
apparently reach 30,000 LSV.

In Asia, the market is new: compact, single-seat vehicles called COMS appeared recently and REVA
manufactures a four-seat LSW for the national and international market, where more than 2,000 vehicles are in
operation.

In Australia, there is an emerging market with approximately 300 LSV sold.




                                                                                                            iv
SAFETY

The LSV or its counterpart is not subject to the same manufacturing or safety standards as a passenger vehicle.
Like a moped, the LSV cannot operate on all roads: more stringent road regulations are imposed in the countries
where it operates.

The only road accident statistics available are French and are provided by the Observatoire national
interministériel de la Sécurité Routière (OSNIR). They show that the rate of LSV involved in traffic accidents is low.
The number of victims is also low. The vast majority of accidents have been recorded on the 90 km/h networks,
mainly on roads that connect rural areas, where 82% of deaths were recorded in 2005 as opposed to 17% in urban
areas. LSV have four times less victims than mopeds. Passenger vehicles provide better security than all the other
types of vehicles compared.

There are significant differences between North America and France regarding the interest in acquiring a LSV,
travel habits, types of clients and the road environment. Logically, the LSV would be used more safely in North
America for two main reasons:

    •     The users have a vehicle driver’s licence;
    •     The roads used have a 35 mph (55 km/h) speed limit.

CONCLUSIONS

Our research revealed that the low-speed vehicle is a niche market, complementing the existing mobility offer and
that it has a usefulness specific of each country where it is authorized. There is an LSV industry with an increasing
number of manufacturers, particularly in North America and in Europe.

Given that Quebec has an action plan regarding climate change, the LSV represents a solution that can reduce the
negative impact of transportation on the environment and the quality of life. The issue of its integration on the
roads in Quebec deserves specific attention.

During our research and interviews with the government authorities in the concerned countries, no exceptional
accidents or worrisome statistics regarding the LSV were brought to our attention. In most cases, it does not raise
major concerns in the countries and states that authorized its use on public roads.

In the United States and in Europe, there are adequate regulations governing the LSV – technical standards as
well as operation rules. However, we noted that European manufacturing standards are much more stringent than
North American standards, which are minimal and insufficient. On the other hand, North American operation rules
are more stringent than those in Europe.




                                                                                                                    v
Each year, some LSV manufacturers incorporate an increasing number of safety elements specific of conventional
vehicles. These LSV resembling minicars are geared to road use in urban areas. This type of product represents a
major technical evolution compared to golf cart-like LSV.

LSV follow several implementation models, depending on cultures and markets. If the authorization of LSV on
Quebec roads is sought, it would be advisable to identify a model of integration that can be reproduced and
transferred to conditions in Quebec.



RECOMMENDATIONS

    1. Pursue an “LSV mission” in North American cities where the LSV were implemented successfully. The
       delegation undertaking this mission would comprise representatives involved in the LSV issue in Quebec,
       including various ministries (Public Safety, Transport, Economic Development, Environment), interested
       municipalities and organizations, independent and industrial experts.

    2. Develop an LSV integration plan with the main objective to define traffic rules on Quebec roads.

    3. Validate and adjust the integration plan through a large scale LSV project implemented at the provincial
       level. This project should involve a representative number of municipalities and vehicles and be managed
       by a single organization or ministry.

    4. Undertake a theoretical scientific study with a road safety specialist to evaluate the impact of the increase
       of the maximum speed of LSV to 50 km/h. Moreover, this aspect could be validated experimentally
       through the pilot project mentioned under item 3.

    5. Evaluate the relevance of increasing the LSV safety standards, particularly regarding the brake system,
       the deicing-defogging system, the seat belt anchorage and the protection of the occupant. These new
       standards could be based on the European directive 2002/24/EC applicable to light quadricycles.

    6. Validate technologies enabling the use of LSV in winter conditions specific of our climate.

    7. Develop a position regarding the issue of possible provincial regulations concerning the circulation of LSV
       on Quebec roads.




                                                                                                                 vi
                                                          TABLE OF CONTENTS
         SUMMARY...................................................................................................................................................................................... iii

1 - BACKGROUND .........................................................................................................................................................................1
    1.1 - INTRODUCTION ...........................................................................................................................................................................1
    1.2 - MANDATE .....................................................................................................................................................................................2
    1.3 – BIRTH OF THE LSV......................................................................................................................................................................2

2 – DEFINITIONS AND REGULATIONS ........................................................................................................................................4
    2.1 - CANADA ....................................................................................................................................................................4
    2.2 – THE UNITED STATES .................................................................................................................................................5
    2.3 - EUROPE ....................................................................................................................................................................6
    2.4 - JAPAN .......................................................................................................................................................................6

3- MANUFACTURING STANDARDS .............................................................................................................................................8
    3.1 – NORTH AMERICAN STANDARDS................................................................................................................................8
         3.1.1 - The United States .................................................................................................................................................................8
        3.1.2 - Canada........................................................................................................................................................................8
    3.2 – EUROPEAN STANDARDS ...........................................................................................................................................9
    3.3 – JAPANESE STANDARDS ..........................................................................................................................................11

4 – RULES OF OPERATION ..................................................................................................................................................................14
    4.1 - CANADA ...................................................................................................................................................................14
        4.1.1 - British Columbia.........................................................................................................................................................14
        4.1.2 - Ontario.......................................................................................................................................................................14
        4.1.3 - Quebec......................................................................................................................................................................15
        4.2 - EUROPE .....................................................................................................................................................................16
        4.2.1 - France .......................................................................................................................................................................17
        4.2.2 - England .....................................................................................................................................................................17
        4.2.3 - Germany....................................................................................................................................................................18
        4.2.4 - Belgium .....................................................................................................................................................................18
        4.2.5 - Other European countries...........................................................................................................................................19
    4.3 - AUSTRALIA...............................................................................................................................................................20
    4.4 - JAPAN ......................................................................................................................................................................20
    4.5 – THE UNITED STATES ...............................................................................................................................................21
        4.5.1 – The concept of “medium speed vehicle”. ....................................................................................................................22
        4.5.2 – Transportation plans for the urban integration of LSV in the United States...................................................................23

5 – EXPERIMENTAL PROJECTS..........................................................................................................................................................26
    5.1 – PILOT AND EVALUATION PROJECTS........................................................................................................................26
        5.1.1 - Quebec......................................................................................................................................................................26
        5.1.2 - Ontario.......................................................................................................................................................................26
        5.1.3 – The United States......................................................................................................................................................27
        5.2 - NEV COMMUNITIES ..................................................................................................................................................28




                                                                                                                                                                                                    vii
6 – PRODUCT SUPPLY AND EMERGING MARKETS..........................................................................................................................29
    6.1 – MARKET TRENDS ....................................................................................................................................................29
        6.1.1 - United States .............................................................................................................................................................29
        6.1.3 - Europe.......................................................................................................................................................................32
        6.1.4 - Asia ...........................................................................................................................................................................34
        6.1.5 - Australia ....................................................................................................................................................................34
    6.2 – THE LSV: AN ALTERNATIVE MOBILITY OFFER ...........................................................................................................39
    6.3 – MARKETING-FACILITATING MEASURES...................................................................................................................40

7 – THE LSV AND SAFETY ....................................................................................................................................................................42
    7.1 – THE LSV IN URBAN TRAFFIC ....................................................................................................................................42
        7.1.1 -The impact of speed on road safety .............................................................................................................................43
        7.1.2 - Municipal trends.........................................................................................................................................................44
        7.2 - THE LSV AND SAFETY..............................................................................................................................................45
        7.3 - ROAD ACCIDENT DATA ............................................................................................................................................46
        7.3.1 -The European experience ...........................................................................................................................................46
        7.3.2 - The US experience ....................................................................................................................................................54
        7.3.3 – Comparison between the French and the North-American situation ............................................................................54

8 – COMMENTS OF THE SPECIALISTS ................................................................................................................................................57

9 – IMPACT OF THE COLD ON THE LSV ..............................................................................................................................................61
    9.1 – THE PROPULSION SYSTEM .....................................................................................................................................61
    9.2 – THE ENERGY STORAGE SYSTEM (BATTERIES) .......................................................................................................61

10 - CONCLUSIONS ...............................................................................................................................................................................63

11 - RECOMMENDATIONS ...................................................................................................................................................................64
    11.1 – SCENARIOS CONSIDERED IN QUEBEC ..................................................................................................................65




                                                                                                                                                                                           viii
LIST OF TABLES
Table 1 Evolution of the LSV in North America ............................................................................................................ 3
Table 2 Summary of Regulations ................................................................................................................................ 7
Table 3 Summary of manufacturing standards.......................................................................................................... 12
Table 4 Summary of operating rules ....................................................................................................................... 25
Table 5 Number and types de vehicles by market niche in the United States ............................................................. 30
Table 6 Product offer (not exhaustive) on the international market with several characteristics............................... 35
Table 7 Personal accidents and victims in LSV in France (1993-2004 ..................................................................... 47
Table 8 Analysis of LSVs involved in traffic accidents (in 2004 and 2006)................................................................ 48
Table 9 Analysis of mortality by road environment (2004 and 2006) ........................................................................ 49
Table 10 Responsability of LSV drivers (in 2004 and 2006....................................................................................... 50
Table 11 Number of people killed by number of vehicles and by million km travelled (2000 to 2006) ...................... 51
Table 12 Comparison between France and the United States.................................................................................. 55




LIST OF FIGURES
Figure 1 NEV Plan of the City of Lincoln .................................................................................................................... 24
Figure 3 Distribution of LSVs in Europe (2006)......................................................................................................... 32
Figure 4 Sales of the main European manufacturers (2002)...................................................................................... 33
Figure 5 Evolution of the number of registrations of new and second hand LSV (1992 to 2006).............................. 46
Figure 6 Evolution of LSVs involved in an accident and of the mortality rate (1993 to 2006).................................... 48
Figure 7 Number of people killed per million vehicles per type of vehicles (2000-2006)........................................... 52
Figure 8 Number of people killed per million km per type of vehicles (2000-2006)................................................... 52
Figure 9 Percentage of people killed by environment (urban/rural) by type of vehicle (2005.................................... 53




                                                                                                                                                             ix
LIST OF APPENDICES
(The Appendices are available on CD in pdf format or on the ITAQ website www.itaq.qc.ca)


Appendix 1:     Canada Gazette Part I, Regulations amending the Motor Vehicle Safety Regulations (Low-
                speed vehicles), December 22, 2007

Appendix 2:     Department of Transportation, National Highway Safety Administration, 49 CFR Part
                571,Federal Motor Vehicle Safety Standards

Appendix 3:     Directive 2002/24/EC of the European Parliament and of the Council of March 18, 2002
                regarding type-approval of two or three-wheel motor vehicles and repealing Council directive
                92/61/EEC

Appendix 4:     Transport Canada Safety and security, Standards and Regulations Division, Technical
                Standards Document No500, Review 1, December 9, 2006

Appendix 5:     ICBC, Registrar’s Circular No 15/00, New vehicle class for low speed vehicles (LSVs),
                September 21, 2000

Appendix 6a:    British Columbia, Consultation on Motor Vehicle Act Regulation Changes - Zero
                Emission

               Electric Vehicles, February 20, 2008

Appendix 6b:    British Columbia, Zero Emission Electric Vehicles, Proposed Regulatory Change

Appendix 7:     Legislative Assembly of Ontario, Bill 169, The Transportation Statute Law Amendment Act,
                February 21, 2005

Appendix 8:     National Assembly of Quebec, Bill 42, Act amending the Highway Safety Code and the
                Demerit Points Regulations

Appendix 9:     Situation of the conversion of the Driver’s licence in the 27 member States

Appendix 10:    Summary of United States regulations by state and district

Appendix 11:    2007 Montana Legislature, Senate Bill no 185, Medium Speed Electric vehicle

Appendix 12:    List of resource persons interviewed




                                                                                                           x
1 – BACKGROUND

1.1 - INTRODUCTION
According to the Motor Vehicle Safety Act and its regulations, in 2000 Transport Canada defined and regulated the
technical standards of a new category of vehicles, the low-speed vehicle, known under the acronym LSV. These
regulations were developed for the purpose of marketing this type of small vehicles throughout Canada.

Each province must regulate the rules of the road regarding the circulation of LSV on Canadian roads as well as
the registration and the issuance of driver’s licences. In 2000, British Columbia was the first province to allow the
circulation of LSV on its roads based on an interim policy. Since February 2008, the LSV has been subject to new
provincial regulations (Division 24 of the MVAR) that allow it to travel without restrictions on any road that is 40
km/h or lower. These vehicles may also travel on roads with a speed limit of 50 km/h, with the approval of the local
road authority of if the municipality specifically regulates their operation on its roads1.

In November 2005, Ontario passed Bill 169 allowing the establishment of pilot projects to test new vehicles and
new technologies. In this context, the Ministry launched an LSV pilot project in controlled, low-speed environments,
namely in provincial and municipal parks and in conservation areas2, where speed limits do not exceed 40 km/h.

In Quebec, several demonstration projects have been implemented since 1998 to evaluate the integration of LSV
in the urban traffic flow. In November 2007, the Ministère des Transports du Québec announced in Bill 423 an
amendment to the Highway Safety Code enabling it to authorize the implementation of pilot projects to test
the use of vehicles or to study, improve or develop traffic rules or standards applicable to safety equipment.
This initiative proposes to test the use of LSV on public roads, to develop safe traffic rules and establish the
equipment standards for the LSV.

The LSV with an electric engine, non-polluting and with a high energy efficiency rate creates a lot of interest in
many regions of the world. In the United States, the LSV may operate according to the rules specific of each of the
46 states. In Europe, its counterpart, the light four-wheeler, has been travelling on French roads for over twenty
years and it is increasingly being integrated on the roads of many other European countries, particularly in Spain
and Italy, where the number of these small vehicles is continuously on the rise. In Europe, most four-wheelers use
“clean” Diesel fuel and use approximately 3.5 l per 100 km. In the United States, the LSV are mostly electrical.

Quebec is no exception. There is increasing interest in the LSV throughout the province, and two assembly plants
opened in the Lower Laurentians. However, the integration of LSV on the roads raises several questions. How is it
possible to integrate safely and seamlessly this new means of locomotion in the existing road environment?




1 British Columbia Ministry of transportation, Zero Emission Electric Vehicles, February 2008
2 http://www.mto.gov.on.ca/french/dandv/vehicle/emerging/lsv-faq.htm#9
3 Assemblée nationale, Bill 42, An Act to Amend the Highway Safety Code and the Regulation Respecting Demerit Points, submitted on November 14 and approved on December 21, 2007


                                                                                                                                                                                   1
The examination of the regulations, standards, safety and quality of the products offered in North America, Europe
and Japan would lead to a more thorough evaluation of the capacity to integrate the LSV in a real traffic
environment and to point to directions of thought for a possible integration of these vehicles on Quebec roads.

1.2 - MANDATE
The Quebec Advanced Transportation Institute (ITAQ) submitted to the ministère des Transports du Québec
(MTQ) a proposal for a study of the situation of LSV and of several related vehicles in selected developed
countries. Considering the issues addressed, the study received the financial support of the MTQ.

The objective of this document is to provide the most recent information on the evolution of LSV in the regions
studied and to identify the trends toward the integration of these vehicles in the ordinary traffic flow. The United
States, certain European Union countries, Japan and Australia were included due to their experiences with this
type of vehicle. Technical standards, traffic rules, the market, the road accident data will be studied in detail and
the opinions of specialists will be reported.

The information collected and the recommendations should enable the MTQ and probably other Canadian
provinces to give direction to their LSV-related policies.

1.3 – BIRTH OF THE LSV
Invented in France in the seventies, the “voiturette”, related to an LSV, was called a
four-wheeler or commonly: licence-less car (LLC). The LLC is a small vehicle of
maximum 45 km/h that anybody over the age of 16 may drive. The LLC immediately
attracted the elderly and people living in rural areas where the access to regular and
flexible transportation left a lot to be desired. At the time, people over 60 made up
over 75% of customers. The LSV is therefore associated to a client-base that is not
trendy. The French company Aixam pioneered the LLV.

Beginning in the eighties, the design and the quality of the LLV improved. In 1992,
the European Union adopted the first Framework Directive establishing the                    Arola – Aixam
manufacturing rules of light and heavy four-wheeled vehicles. However, the opening        First licence-less car
of the European market to licence-less vehicles was felt particularly in 1997. French
manufacturers entered neighbouring markets and decided to invest in the
development of new products, the improvement of the quality and safety of the
vehicles, the development of new technologies and designs. From now on, the manufacturers target a younger,
more urban client-base, more connected to global issues and more concerned about their look.

In North America, the popularity of golf, first as a leisure sport then as a high level competition sport, accessible to
all generations, promoted the building of new courses and the development of gated communities. The golf cart
quickly becomes popular and the users get used to this small car increasingly propelled by a quiet, clean and
economical electric engine. Very soon, gated communities use the carts outside golf courses




                                                                                                                      2
                  and many users use them on a regular basis for their daily activities.
                  Towards the mid-1990s, Bombardier develops its NEV (Neighborhood Electric Vehicle)
                  in response to an expanding market, particularly in the Sun Belt of the United States.
                  The concept of the LSV, a more performing, safer and more solid product than the golf
                  cart, makes its appearance on the American market and in the daily speech. The
                  federal government of the United States then created a new class of vehicles: the Low
                  Speed Vehicle. The National Highway Traffic Safety Administration, the American
                  organization that sets the standards for the manufacture of vehicles, issued a new                         NEV Bombardier
                  standard: FMVSS 500. The legislators of the 50 states are then assigned the task to                          First LSV
                  evaluate the relevance of authorizing the operation of these vehicles on their roads.
                  Today, 46 American states allow LSV on certain roads based on well-defined criteria.
                  here are about thirty global LSV manufacturers, including three in Canada. This
                  evolution shows the increasing popularity of the product, in Europe as well as in North America.
                                                                        Table 1
                                                        Evolution of the LSV in North America

                     Golf cart                    First generation LSV         Second generation LSV                    Third generation LSV
   Type of LSV




                     Golf function only           Golf cart ”FMVSS 500”        LSV with a “golf” look but with design   LSV with the look of an urban car.
                                                  Minimal equipment            geared to use on the road –              Equipment exceeding the
                                                                               Equipment exceeding the                  requirements of FMVSS500
                                                                               requirements of FMVSS500
                     EZ-Go Yamaha,                Columbia ParCar              GEMcar, Big Man EV, Think                Dynasty, ENN
manufacturers
 Examples of




                     Club Car Columbia            (NEV)                        Neighbor, Bombardier
                     ParCar                                                    NV
   Photos types




                     20 mph (32km/h)              25 mph (40 km/h)             25 mph (40 km/h)                         25 mph (40 km/h)
      Speed
      Propulsion




                     Gas or electrical            Electrical 4 HP              Electrical 4 HP                          Electrical 5 HP



                     No seat belt, often          A golf cart “base”           Laminated windshield                     Automobile type
                     no                           with added                   (AS1),                                   technologies offered for
                     headlights/signals/re        headlights, rear view                                                 standard equipment
                     arview mirror, just          mirrors, turn signals,       windshield wipers, 3-point               (doors, heating,
                     rear brake – with            often AS5                    seatbelt, often rigid safety             defogging, etc.)
   characteristics




                     cables, often no             windshield, no               cage, often high seats,
                     windshield, low seat         windshield wipers,           independent parking                      Prestressed, shock–
                     without head                 rear brakes, regular         brake, hydraulic brake on                absorbent aluminum,
                     support.                     parking brake, 2-            the 4 wheels, master                     instrument panel
                                                  point seatbelt, roof         cylinder with two                        indicator (pads wear,
                                                  and minimalist               compartments, 3rd                        brake fluid level).
                                                  safety cage, fabric          stoplight, better
                                                  doors, low seat.             acceleration than the first
                                                                               Gen LSV, optional or vinyl
                                                                               doors.


                                                                                                                                               3
2 – DEFINITIONS AND REGULATIONS

2.1 - CANADA
In July 2000, Transport Canada regulated a new class of vehicles: the low-speed vehicle and defined it as follows4:

      ”a vehicle, other than an all-terrain vehicle, a truck or a vehicle imported temporarily for special purposes, that

      a)    is powered by an electric motor;

      b)    creates no emissions;

      c)    is designed to travel on four wheels and has an attainable speed in 1.6 km of more than 32 km/h but
            not more than 40 km/h, on a paved level surface.”

Recently, on December 22, 2007, Transport Canada published in the Canada Gazette Part I (Notices and
Proposed Regulations), Regulations amending the Motor Vehicle Safety Regulations (Low-speed vehicles) to
include the following conditions (legislative text in Appendix 1)5:


      •     Clarify the initial reason for establishing this class of vehicles, which was to allow the use of such
            vehicles for short trips, such as shopping, social and recreational purposes, in limited, planned and
            controlled environments.
      •     Require that a slow-moving vehicle emblem to be permanently marked on the LSV in order to harmonize
            with provincial/territorial requirements.
      •     Include small trucks with a nominal maximum weight of 1,361 kg in the definition of LSV.
      •     Specify what type of safety glazing is acceptable for an LSV windshield to remain aligned with the United
            States
      •     Clarify the current no emission requirement to state that an LSV does not use fuel as an on-board source
            of energy. This is in keeping with the original intent that an LSV be an environmentally-friendly electric
            vehicle.

The document states that “the provinces and territories are responsible for setting out the requirements for LSV
licencing and use and may designate areas for use of LSV or may otherwise regulate the use of LSV on public
roads. The safety risk of introducing this new class of vehicles was foreseen to be low if LSV were operated in an
appropriate environment.”




4Matthew Coons, P. Eng.,Senior Regulatory Development Engineer, Transport Canada
4www.tc.gc.ca/acts-regulations/GENERAL/m/mvsa/regulations/mvsrg/001/mvsr1-21.html
http://gazetteducanada.gc.ca/partI/2007/20071222/html/regle4-f.html

                                                                                                                        4
2.2 – THE UNITED STATES
On June 17, 1998, the National Highway Traffic Safety Agency (NHTSA) regulated a new class of vehicles: the low
speed vehicle (LSV) and defined the low speed vehicle as a “motor vehicle, other than a truck, whose speed
attainable in 1.6 km is more than 32 kilometers per hour and not more than 40 kilometers per hour on a paved
level surface” (legislative text in Appendix 2).

On October 3, 2005, an amendment to the regulations eliminates the previous exclusion of trucks and limits the
weight of the vehicles at 1,134 kg or 2,500 lb. 6

On June 5, 2006, following pressure from Dynasty who found that the maximum required weight was too limiting, a
new amendment to the regulations limits the weight of the LSV to 1,361 kg or 3,000 lb7.

This class of vehicles includes the NEV, or neighbourhood electric vehicles, as well as adapted golf carts. The
NHTSA identifies the various types of vehicles related to LSV as follows:8


      •      A fleet golf cart is a vehicle with a maximum speed of 15 mph and is used solely to carry one or more
             people and golf equipment. These are sold to golf courses.


      •      A personal golf cart is a vehicle with a maximum speed of 15 mph and is for personal use. It may be
             used to play golf or to travel on public roads on purposes unrelated to golf, or for personal reasons;


      •      A speed-modified golf cart is a cart adapted by an individual, after its purchase, to have a speed of 20 to
             25 miles per hour. These carts are subject to valid standards and regulations;


      •       NEV, or neighbourhood electric vehicle, is the popular name for an LSV. In the United States, the two
             terms are closely related and are often used one for the other. The NHTSA added that this class of
             vehicles is more closely related to a car than to a golf cart.




6  http://www.thefederalregister.com/d.p/2005-08-17-05-16323
7 http://www.thefederalregister.com/d.p/2006-04-19-06-3590
8 Department of transportation, National Highway Traffic Safety Administration, 49 CFR Part 571, [Docket No. NHTSA 98-3949], RIN 2127-

AG58, Federal Motor Vehicle Safety Standards www.nhtsa.dot.gov/cars/rules/rulings/lsv/lsv.html

                                                                                                                                         5
2.3 - EUROPE
En 1992, the European Union began to show interest in quadricycles for the first time. This vehicle had already
attracted users in several member States, so the need for a strict legal framework to regulate the manufacturing
standards became apparent. Thus, Directive CEE/92/61 relating to the type-approval of two or three-wheel motor
vehicles (since consolidated in the Directive CE/2002/24, Appendix 3) regulates the manufacture and certification
in Europe of quadricycles.

Since 1992, the European Union has considered that quadricycles belong to the moped class, which is logical
considering the technical requirements imposed (weight, power and speed limits).

Directive CE/2002/24 refined this definition of four wheelers, by making a distinction between heavy quadricycles
and light quadricycles.

Light quadricycles

Directive EC/2002/24 defines light quadricycles as follows:

“vehicles whose unladen mass is not more than 350 kg, whose maximum design speed is not more than 45 km/h,
and whose engine cylinder capacity does not exceed 50 cm3 for spark (positive) ignition engines (or whose
maximum net power output does not exceed 4 kW in the case of other internal combustion engines)”.

Heavy quadricycles

Directive EC/2002/24 defines heavy weight quadricycles as follows:

“quadricycles, other than (light quadricycles), whose unladen mass is not more than 400 kg (550 kg for vehicles
intended for carrying goods), not including the mass of batteries in the case of electric vehicles, and whose
maximum net engine power does not exceed 15 kW.”

This strict distinction between quadricycles and traditional cars is necessary to avoid possible abuses.

We should note that European terminologies do not mention golf carts or adapted carts.


2.4 - JAPAN
During our research we noted that vehicles related to LSV are in operation in
Japan. However, we could not obtain official regulations issued by a ministry.

These small, low-speed vehicles belong to the motorized 4-wheel bicycles
category, Class I (45 km/h), and Class II (60 km/h). We may draw a parallel
to the European classification regulated by Directive 2002/24/EC applicable
to light quadricycles (45 km/h) and heavy quadricycles (60-70 km/h).
                                                                                 A Mitsuoka MC-1 electric vehicle used as a
                                                                                             delivery vehicle




                                                                                                                      6
                                       Table 2
                                 Summary of Regulations


                 CANADA                          UNITED STATES               EUROPE

Authority        Federal                         Federal                     European Union
                 Transport Canada                National Highway Traffic
                                                 Safety Association
Effective Date   July 27, 2000                   June 17, 1998               March 18, 2002
Registration     SOR/2000-304                    49 CFR Part 579             2002/24/CE
                 Low-speed vehicle: a            Low speed vehicle:          Quadricycles:
                 vehicle, other than an all-     A 4-wheel motor vehicle,     1. Light
                 terrain vehicle, a truck or a   other than a truck, whose    Assimilated to mopeds
                 vehicle imported                speed is more than 20 mph    Licence-less vehicles
                 temporarily:                    (32 km/h) and not more       Mass empty: 350 kg max
                      • is powered by an         than 25 mph (40 km/h)        Speed: 45 km/h max
                           electric motor                                     Power: 4 KW max
                      • creates no                                            2. Heavy
                           emissions
                                                                              Requires a driving licence
                      • travels on four
                                                                              Mass empty: 400 kg or
                           wheels at a speed
                                                                              550 kg (crries goods)
                           of 32 km/h to 40
                                                                              Speed: 60 km/h max
                           km/h
                                                                              Power: 15 KW

First review     (Gazette Part I) following      October 3, 2005             January 1, 2007
                 consultations:                  • Inclusion of small        European regulation of the
                 • slow-moving vehicle               trucks                  licence: category AM for
                     emblem                      • Weight limited to 1,134   light quadricycles:
                 • Include small trucks              kg (2,500 lbs).         • theory test licence
                     with a maximum                                                mandatory
                     weight of 1,361 kg
Second review    • Specify type of safety        June 6, 2006
                     glazing                     • Weight limited to 1,361
                 • Clarify the reason for           kg (3,000 lbs).
                     establishing this class
                     of vehicles




                                                                                                   7
3 – MANUFACTURING STANDARDS

These standards specify the technical requirements for the sale of these vehicles by the manufacturer in a given
country (Canada, the United States, Europe, Japan).

In Canada and the United States, these standards are under the jurisdiction of the federal government. In Europe,
they are developed according to the directive of the European Parliament.

3.1 – NORTH AMERICAN STANDARDS
3.1.1 – The United States

Since June 1998, the LSV are defined by the National Highway Traffic Safety Administration (NHTSA) as vehicles
that have to comply with the “Federal Motor Vehicle Safety Standards no 500” (FMVSS 500). While Low Speed
Vehicle (LSV) is the technically correct term, Neighborhood Electric Vehicle (NEV) seems to be the colloquial term.

FMVSS 500 (49 CFR 571.500) defines the manufacturing standards of low speed vehicles9. These standards were
implemented in 1998 under pressure from various communities, certain states and Bombardier, who wanted to
market its NEV in the Southern United States.

3.1.2 - Canada

Since July 2000, Transport Canada requires that LSVs meet the Canada Motor Vehicle Standard Safety No. 500
(CMVSS 500)10.

The technical requirements of the Canadian standard are identical to those of the American standard with the
exception of the fact that in Canada an LSV must be exclusively electrically driven.

Requirements of the North American standards CMVSS 500 and FMVSS 500: (Legal
text in Appendix 4)


         a)     the maximum speed attainable in 1.6 km (1 mile) by each low-
                speed vehicle shall not be more than 40 km/h (25 m/h).

         b)     Each low-speed vehicle shall be equipped with:

         •      Headlamps

         •      Front and rear turn signal lamps.                                       Dynasty Sedan




9   www.nhtsa.dot.gov/cars/rules/rulings/lsv/lsv.html
10   www.tc.gc.ca/securiteroutiere/mvstm tsd/index f.htm

                                                                                                                 8
     •     Tail lamps.

     •     Stop lamps.

     •     Reflex reflectors: one red on each side as far to the rear as practicable and one red on the rear.

     •     An exterior mirror mounted on the driver’s side of the vehicle and either an exterior mirror mounted on
           the passenger’s side of the vehicle or an interior mirror.

     •     a parking brake.

     •     a windshield that complies with section 205, Glazing Materials, of the Motor Vehicle Safety
           Regulations (MVSR), the Federal motor vehicle safety standard on glazing materials
           (49 CFR 571.205).

     •     A VIN (Vehicle Identification Number) that complies with the requirements of section 115, Vehicle
           Identification Number, of the MVSR part 565 Vehicle Identification Number of this chapter.

     •     Type 1 or Type 2 seat belt assemblies compliant with MVSR Sec. 571.209 of this part, Federal Motor
           Vehicle Safety Standard No. 209, Seat belt assemblies, installed at each designated seating position.

Several American states are currently improving these standards, requiring additional elements or specifics
however, in most cases without asking for standard performance requirements. For example, Montana requires,
without however referring to the standards, that the LSV have side shockproof struts and 3-point seatbelts. On the
contrary, Michigan requires a safety cage that meets the roof crush resistance standards FMVSS 216 for motor
vehicles.

3.2 – EUROPEAN STANDARDS
In Europe, directive 2002/24/CE of the European Parliament and of the Council of March 18, 2002 defines the
standards to be met for two-wheel, three-wheel vehicles and quadricycles. This directive defines two types of LSV:
light quadricycles and heavy quadricycles.

Light quadricycles have an unladen mass of no more than 350 kg not including the mass of the batteries in case
of electric vehicles and their maximum design speed is not more than 45 km/h, and:


     •     the engine cylinder capacity does not exceed 50 cm3 for spark (positive)
           ignition engine, or

     •     the maximum net power output does not exceed 4 kW in the case of other
           internal combustion engines, or

     •     the maximum continuous rated power does not exceed 4 kW in the case of                 Aixam Scouty
           an electric motor.

The heavy quadricycles have an unladen mass of not more than 400 kg (550 kg for vehicles intended for carrying
goods), not including the mass of batteries in the case of electric vehicles, and the maximum net engine power
does not exceed 15 kW.



                                                                                                                 9
European manufacturing standards11 are more detailed and stringent than North American standards. No less than
26 specific standards apply to European quadricycles. For example, standard 2002/24/EE refers to minimal
standards for brakes, air-powered systems, rear view mirrors, mass and size or speedometer.

It should be noted that North American standards for LSV do not have such specific and detailed requirements.

This is the list of the various standards applicable to quadricycles as specified in directive 2002/24/EC:

 95/1/EC:                maximum torque and maximum net engine power (spark-ignition or compression and electrical
                         ignition)
 97/24/EC C7:            anti-tampering measures for two or three-wheel vehicles
 97/24/EC C6:            fuel tank
 95/1/EC:                maximum speed by construction of vehicle
 97/24/EC C5:            Anti air-pollution measures
 93/93/EEC:              mass and size
 97/24/EC C10:           coupling devices and their attachment
 93/14/EEC:              brakes
 97/24/EC C1:            air-powered systems
 93/30/EEC:              audible warning device
 93/92/EEC:              installation of lighting and light-signalling devices
 97/24/EC C2:            light and light-signalling devices on the vehicle, the mandatory or optional presence of
                          which is laid down in the installation requirements under heading No 32
 97/24/EC C4:            rearview mirrors
 93/33/EEC:              devices to prevent the unauthorized use of the vehicle
 97/24/CE C3:            external projections
 97/24/EC C12 :          windows, windscreen wipers, windscreen washers and devices for deicing and defogging
                         for three-wheel mopeds, motor tricycles and quadricycles with bodywork
 97/24/EEC C11 :         anchor points for safety belts
 2000/7/EE:              speedometer
 93/29/EEC:              identification of controls, tell-tales and indicators

Source: DIRECTIVE 2002/24/EC OF THE EUROPEAN PARLIAMENT AND COUNCIL of 18 March, 2002
regarding type-approval of two or three-wheel motor vehicles and repealing Council directive 92/61/EEC appendix
3, page 15.

Although not required by the European standard, all European manufacturers increased the safety standards for
vehicles. For example, all quadricycles meet lateral, frontal and back crash tests voluntarily, without being required
to by a standard.




11 Directive 2002/24/EC of the European Parliament and of the Council of 18 March 2002

http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0024:FR:HTML
http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2002L0024:20050517:EN:PDF

                                                                                                                     10
3.3 – JAPANESE STANDARDS

These small, low-speed, often single seat vehicles, classified under the “motorized
4-wheel bicycle” category appeared recently in Japan. Our research did not lead to
specific technical standards, however, we can list the following characteristics:

     •     .   Small, 4-wheel vehicle

     •     Lighter safety standards, similar to the standards for scooters (like in
           Europe)

     •     Low-speed, urban use

     •     No specific requirements for the type of propulsion (i.e., gas and
           electrical engines are available on the Japanese market)

     •     Often without rigid doors, a single seat, windshield, windshield wiper, 3-
                                                                                                Toyota Auto Body
           point safety belt, lights and headlights are required.
                                                                                                   The COMS
     •     Use of low power traction system. For example, in the case of the electric
           engine, a 48 V system is used for the 45 km/h application and a 72 V




                    European manufacturing standards are more stringent than North American manufacturing
                    standards. However, it should be noted that in the United States the majority of manufacturers
                    add elements that are not required in the FMVSS500 basic standard, such as windshield
                    wipers, deicing-defogging, the three point safety belt, hydraulic brakes.




                                                                                                                     11
                                                                                          Table 3
                                                                             Summary of manufacturing standards

                                          Canada                                    US                                            Europe                                              Japan*
Authority                     Transport Canada (TC)              National Highway Traffic Safety                                 European Parliament                           N/A
                                                                 Administration (NHTSA)
Reference                     NSVAC 500                          FMVSS 500                                    2002/24/EC                    2002/24/EC                         N/A
document
                              In force since July                          In force since 1998                In force since 18             In force since 18
                              2000.                                  Reviewed in 2005 and 2006                March 2002                    March 2002

                              • Has four wheels                  • Has four wheels                            Light quadricycles            Heavy quadricycles                 “Motorized 4-wheel vehicle”
                              • Operated by an                   • Developed to reach a speed                 Unladen mass: 350 kg          • Unladen mass:                    Class I : 50 cc
     Current definition




                              • electric motor                     between 32 and 40 km/h                                                     400 kg for the
                                                                                                              • Assimilated to                                                 Class II : 125 cc
                              • Developed to reach a             • Includes small trucks                        mopeds                        transportation of
                                speed between 32                 • Weight limited to 1,361 kg                                                 passengers                       •      Associated to
                                and 40 km/h                                                                                                 • or 550 for the                         motorcycles and
                                                                                                                                              transportation of                      scooters.
                                                                                                                                              goods
                                                                                                                                            • Assimilated to
                                                                                                                                              motorcycles
                                                                                                                                            •
                              No power limit.                    No power limit. It can be an                 4 kW or 5,6                   15 kW or 20                        Electrical or internal
  engine power




                                                                 electrical or an internal combustion         horsepower, electrical        horsepower, electrical             combustion engine.
    Limit of




                              However, it must be
                              electrical.                        engine. Several states declare               or internal combustion        or internal combustion
                                                                 however that the motor must be               engine.                       engine.
                                                                 electrical.

                              40 Km/h                            25 mph (40 km/h)                             45 Km/h                       45 Km/h                            45 km/h for class I 70
  Speed
   limit




                                                                                                                                                                               km/h for class II

                              None                               Limited in 5 states (from 1,800 to           350 kg without batteries 400 kg but up to 550 kg for
  m weight
  Maximu




                                                                 3,000 lbs.)                                                           “trucks”, without batteries.


                              a) Headlights                      a) Headlights.                               a) 95/1/EC: maximum           a) 95/1/EC: maximum torque         Lighter safety standards,
                              b) Front and rear turn signal      b) Front and rear turn signal lamps.            torque and maximum            and maximum net engine          similar to the standards for
                                 lamps.                                                                          net engine power              power                           scooters with the addition
                                                                 c) Taillights.
                              c) Taillights.                                                                  b) 93/93/EEC: mass and        b) 93/93/EEC: mass and size        of several vehicle-type
                                                                 d) Stop lights.                                 size
                              d) Stop lights.                                                                                               c) 97/24/EC C10:                   characteristics (laminated
                                                                 e) Reflex reflectors: one on each side as    c) 97/24/EC C10:                                                 windshield, 3-point
                              e) Reflex reflectors: one on          far to the rear as practicable and one                                  d) coupling devices and their
                                                                                                                 coupling devices and          attachment                      seatbelt, steering wheel,
                                 each side as far to the rear       on the rear.                                 their attachment.
                                 as practicable and one red                                                                                 e) 93/14/EEC: brakes               parking brake).
                                                                 f) An exterior mirror mounted on the         d) 93/14/EEC: brakes
                                 on the rear.                       driver’s side of the vehicle and either                                 f) 97/241EC C1: air-powered
                              f) An exterior mirror                 an exterior mirror mounted on the         e) 97/241 EC C1: air-            systems
                                                                    passenger’s side of the vehicle or an        powered systems
                              g) mounted on the driver’s                                                                                    g) 93/92/EEC: installation of
                                 side of the vehicle and an         interior mirror.                          f) 93/92/EEC:                    lighting and light-signalling
                                                                                                              g) installation of lighting
     Main elements required




                                 exterior mirror mounted on      g) a parking brake.                                                           devices.
                                 the passenger’s side or an                                                      and light-signalling
                                                                 h) An AS-1 or AS-2 windshield that              devices.                   h) 97/24/EC C4: rear view
                                 interior mirror.                   complies with the Z-26.1- 1977                                             mirrors
                                                                                                              h) 97/24/EC C4 : rear
                              h) A parking brake.                   standard                                                                i) 97/24/EC C3: external
                                                                                                                 view mirrors
                              i) A windshield that complies      i) A vehicle identification number.                                           projections
                                                                                                              i) 97/24/EC C3:
                                 with Section 205.                                                                                          j) 97/24/EC C12: glazing
                                                                 j) Type 1 or Type 2 seat belt assemblies     j) external projections
                              j) A vehicle identification           that comply with Section 209, installed                                    materials, windshield wipers
                                 number.                            at each designated seating position.      k) 97/24/EC C12: glazing         and deicing
                                                                                                                 materials, windshield
                              k) Type 1 or Type 2 seat belt                                                      wipers and deicing       k) 97/24/CEE C 11 : anchor
                                 assemblies complying with                                                                                   points for safety belts
                                                                                                              l) 97/24/EEC C11:
                                 Section 209 installed at each                                                   anchor points for safety l) 2000/7/EC: speedometer
                                 designated seating position.                                                    belts                    m) 93/29/EEC:
                                                                                                              m) 2000/7/EC:                 n) identification of controls,
                                                                                                              n) speedometer                   tell-tales and indicators
                                                                                                              o) 93/29/EEC:
                                                                                                                 identification of
                                                                                                                 controls, tell-tales and
                                                                                                                 indicators




                                                                                                                                                                                                   12
                                                Canada                               US                                       Europe                                      Japan*
                                     Items a) to g) do not indicate  The Canadian standard is identical to   Light quadricycles        The standards for heavy
                                     technical specifications.       and based on the American standard      must comply with no       quadricycles are the same
                                     Certification requires only one with the exception of the engine        less than 26              as for the light
                                     test: measure of maximum        characteristic.                         manufacturing             quadricycles. European
Observations




                                     speed                           Only one test is required for           directives or vehicle     standards are more specific
                                                                     certification: measuring the maximum    standards.                and detailed than North
                                                                     speed                                                             American standards.
                                                                                                                                       Idem as for the light
                                                                                                                                       quadricycles




                                     Limitation of the vehicle       New category of vehicles                French manufacturers      In Europe, the LSV is         Vehicles with 50 cc engines
                                     weight                          (medium speed vehicles) in the          included safety           considered more a minicar     can operate on roads of
                                     and repealing of                states of Montana and                   elements not required     or a mini truck.              maximum speed of 30 km/h.
                                                                     Washington. Limitation of the           by standard                                             Engines of maximum 125 cc
                                     restrictions assigned to trucks LSV weight in 5 states.                                                                         may operate on roads of
                                                                                                             2002/24/EC,
Items being developed orquestioned




                                     under study.                                                                                                                    maximum speed of 30 km/h.
                                                                                                             specifically airbags.
                                                                                                             Certification involves
                                                                                                             many tests. One of
                                                                                                             them is destructive:
                                                                                                             Resistance of the
                                                                                                             anchorage points for
                                                                                                             safety belts.
                                                                                                             Some manufacturers
                                                                                                             do collision tests (not
                                                                                                             required) with or
                                                                                                             without dummies and
                                                                                                             impose requirements
                                                                                                             inspired by the
                                                                                                             standards of "real”
                                                                                                             vehicles.




               * Data extrapolated based on the information we have




                                                                                                                                                                                      13
4 – RULES OF OPERATION

The rules of operation refer to the registration of vehicles, the driver’s licence and traffic rules and are under the
jurisdiction of Canadian provinces, the American states and of each State member of the European Union.

4.1 - CANADA
4.1.1 – British Columbia

In 2000, British Columbia was the first province to allow the circulation of LSV on its roads based on an interim
policy. Subject to provincial regulations regarding low-speed vehicles (Division 7B of the Motor Vehicle Act
Regulations - MVAR), LSV had to meet the following requirements12 (See Appendix 5):

      •       Display a warning device indicating: ”Slow Moving”;

      •       Illuminate amber non-rotating flashing lamps as warning lights;

      •       Must drive the vehicle in the right hand lane;

      •       Drivers must have a vehicle driver’s licence.

However, LSV were forbidden access to highways (Schedule 1 Highways) and to the main bridges and tunnels.

In February 2008, British Columbia announced its intention to allow LSV to operate without warning lights or a slow
moving warning device. From now on, the LSV or Low Speed Zero Emission Electric Vehicle (ZEV) is subject to
new provincial regulations (Division 24 of the MVAR) that allow it to travel without restrictions on any road with a
maximum speed limit of 40 km/h. These vehicles may also travel on roads with a speed limit of 50 km/h, with the
approval of the local road authority or if the municipality specifically regulates their operation on its roads13 (see
Appendix 6).

These operating parameters aim to facilitate the introduction of these vehicles while preserving the local autonomy
of the identification of safe and appropriate operating areas.

4.1.2 - Ontario

On November 21, 2005, the government of Ontario introduced a Bill allowing the provincial Ministry of
Transportation (MTO) to test new transportation technologies in real environments14. Bill 169, The Transportation
Statute Law Amendment Act, 2005 (see Appendix 7) allows the Ministry of Transportation of Ontario to test LSV as
well as electric bicycles.




12 ICBC regular’s circular, September 2000
13 British Columbia Ministry of transportation, Zero Emission Electric Vehicles, February 2008
14 Ontario Ministry of Transportation, www.mto.gov.on.ca/english/dabdv/vehicle/emerging


                                                                                                                  14
In September 2006, a pilot project for the evaluation of LSV with a duration of 5 years was launched in provincial
and municipal parks and in fauna and flora conservation areas in Ontario. The pilot project is limited to these
recreational or ecological areas and the LSV can only be used by park employees with a valid driver's licence. The
LSVs are allowed on the roads and paths of these parks with a speed limit of less than 40 km/h.

The Ministry of Transportation of Ontario stated its concern regarding the unsatisfactory results of the LSV in
collision tests. However, it admits that the LSV may meet mobility needs in low-speed environments, such as parks
(40 km/h speed limit) or camping grounds (30 km/h speed limit).

4.1.3 - Quebec

In November 2007, the Ministère des Transports du Québec announced in Bill 42 (see Appendix 8), an
amendment to the Highway Safety Code and the Demerit Points Regulations adopted on December 19, 2007 and
assented to on December 27, 2007 – Section 81 enabling it to authorize the implementation of pilot projects to test
the use of vehicles or to study, improve or develop traffic rules or standards applicable to safety equipment (see
article below).

This initiative proposes to test the use of LSV on public roads, to develop safe traffic rules and establish the
equipment standards for the LSV.


         81. This code is amended by inserting the following after Section 633:
         “633.1. After consultation with the Société, the Minister may, by order, restrict or prohibit
         the use on public highways of any model or class of vehicle the Minister determines until it
         is proved to be safe. The order of the Minister is published in the Gazette officielle du
         Québec in accordance with the Regulations Act (chapter R-18.1).
         On the same conditions, the Minister may, by order, authorize pilot projects to test the use
         of vehicles or to study, improve or develop traffic rules or standards applicable to safety
         equipment. The Minister may prescribe rules relating to the use of a vehicle on a public
         highway as part of a pilot project. The Minister may also, in the context of a pilot project,
         authorize any person or body to use a vehicle in compliance with standards and rules
         prescribed by the Minister that are different from those provided in this Act and the
         regulations.
         Pilot projects are conducted for a period of up to three years, which the Minister may extend
         by up to two years if the Minister considers it necessary. The Minister may modify or
         terminate a pilot project at any time. The Minister may also determine the provisions of an
         order made under this section the violation of which is an offence and determine the
         minimum and maximum amounts for which the offender is liable, which may not be less
         than $30 or more than $360.
         633.2. If the Minister considers that it is in the interest of the public and is not likely to
         compromise highway safety, the Minister may, by order and after consultation with the
         Société, suspend the application of a provision of this Code or the regulations for the period
         determined by the Minister. When using this exemption, the Minister may prescribe any rule
         that, in the opinion of the Minister, ensures an equivalent level of safety. The publication
         requirement under section 8 of the Regulations Act (chapter R-18.1) does not apply to such
         an order “.




                                                                                                               15
4.2 - EUROPE
European legislation regarding driving conditions and licences is based on Directive 91/439 that defines driving
licences for the various categories of motor vehicles. This directive defines a B1 licence for heavy quadricycles but
does not establish specific provisions for light quadricycles. Therefore, each European country is free to accept or
not driving without a licence.

However, Article 1515 of the Directive 2002/24/CE states that Member States shall not prohibit the marketing, sale,
entry into service or use of new vehicles complying with this Directive.

European regulations governing the driver’s licence were introduced on January 19, 2007. It defines an AM
category for vehicles of 2, 3 and 4 wheels of maximum 50 cc whose drivers must from now on obtain a theoretical
test licence to drive these vehicles. The European Union allows its member countries to add a practical test,
practical training or a medical examination.

European regulations set the minimum age at 16 years for obtaining the permit with the possibility for the member
States of a range of 14 to 18 years.

According to EQUAL16, these regulations represent a favourable decision for quadricycles since they:

         •     Officially recognize the existence of a 4-wheel moped at the European level

         •     Allow the implementation of a licence adapted to this type of vehicles which is nevertheless a
               safety guarantee for users on the road.

Manufacturers had already organized themselves to provide their clients with automobile driving school training (5
free hours for the client). This European decision makes this formality official and compels all quadricycle buyers to
better acquaint themselves with road safety.

We should note that based on a European decision, countries have two years to define the conditions for
conversion and four years to implement it (see Appendix 9: Situation of the conversion of the Driver’s licence in the
27 member States). During this interval, the country continues to apply what it was doing before. However, certain
countries already made progress in defining the conversion (Holland, Austria), while others will have to review their
former position, such as England, who was against it.

Considering that the AM licence is defined by each member country, the characteristics of the scooter cannot be
dissociated since they belong to the same regulations. The two common denominators for the 2-3 and 4 wheels
are the required age and the theoretical examination. The practical examination may be different for the four
wheels.

Presently, the will in Europe is to increase road safety and make it harder to obtain a driver’s licence.




15   http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0024:EN:NOT
16   Antoine Fouchard, President, EQUAL, January 200 8

                                                                                                                  16
4.2.1 - France

In France, the legislation requires a minimum age of 16 years to drive a light quadricycle:

      •      for all those born before January 1, 1988, driving is free and no licence is required.

      •      those born after January 1, 1988 need a “brevet de sécurité routière (BSR)” (road safety certificate-RSC)
             “light quadricycle” option or a motor vehicle or motorcycle driver’s licence. The RSC “light quadricycle”
             option requires a short theoretical examination and a 3-hour practical training without examination.

For the heavy quadricycles, driving is allowed beginning at the age of 16 years for drivers holding the minimum
licences A1, A4, AT, AL, B1 or the "circulation licence” issued before 01/04/1958. All A, B, C and D licences are
recognized by equivalence.

4.2.2 - England

In England, quadricycles have traditionally been considered agricultural vehicles of limited use and have not been
designed to operate on public roads. However, since June 17, 2003, English regulations aligned with European
standards regarding light quadricycles (category L6e) and heavy quadricycles (category L7e)17.

At present there is only one regulation for “agricultural quad bikes”. The agricultural quad bike is defined as a four-
wheel light vehicle designed for off-road mobility needs, such as agricultural land or areas reserved for forestry.
The agricultural quad bike may however operate on public roads, for short distances, if it is registered and has
headlights, a speedometer and a horn. The standards for the headlights and running lights change according to
the speed of the vehicle. The agricultural quad bike cannot carry passengers.

Since the city of London introduced traffic limiting measures in the downtown area, quadricycles appeared in the
streets of the British metropolis. These quadricycles are not traditional agricultural quad bikes and are not
regulated. Therefore, they theoretically may operate freely on all public roads. However, a driver’s licence is
required (so it does not fall in the category of light quadricycles but rather in that of heavy quadricycles) and the
vehicle must be registered and insured.

Since the sale of Reva Indian products exploded through its British branch GoingGreen, more than 900 LSV
currently operate in the streets of London. Facilitated by the measures limiting the access to downtown and by
generous tax credits on purchase, LSV have become popular vehicles with Londoners. The Department of
Transport has been examining possible legislation for these vehicles on roads18.




17
 www.dft.gov.uk/pgr/roadsafety/drs/cyclingandmotorcycling/quadbikesfs
18
 Business Standard/India, UK may slam brakes on Reva electric car, June 2007, www.evworld.com/news.cfm?worldBusiness Standard/India, UK
may slam brakes on Reva electric car, June 2007, www.evworld.com/news.cfm?newsid=15324

                                                                                                                                    17
The Minister for Transport, Dr. Stephen Ladyman, mentioned that British regulations were implemented at a time
when quadricycles were small, specialized vehicles or four-wheeled motorcycles, not small urban vehicles
resembling small cars. Tests are being undertaken by the UK Department of Transport on two LSV: a Reva and an
Aixam-Mega. The results of these tests have not yet made public and are awaited impatiently by the manufacturers.

4.2.3 - Germany

In 2002, the European Commission decided to formally invite Germany to change its provisions regarding the
driver’s licence for light quadricycles19. According to the German regulations at the time, gasoline quadricycles
could be driven not only with a B licence (passenger car) but also with an old driver's licence "Klasse 5" that could
be obtained more easily than the current "B" licences. On the contrary, diesel engine quadricycles could only be
driven by the holders of "B" licences. The European Commission estimated that these provisions had a
discriminating effect on quadricycles manufactured in other member States, where driving standards are not so
stringent. The German regulations were perceived as contrary to the rules of the EC Treaty that forbids any
unjustified interference with the free flow of goods (Articles 20 to 30).

Following this request of the Commission, Germany seems however to have preserved its regulations. The B
licence for light quadricycles with diesel engine is still required and the minimum age is 16 years. There is also a
“simplified” licence for any vehicle with a maximum speed of 25 km/h or equipped with a gasoline engine of
maximum 50 cc.

4.2.4 - Belgium

Belgium identified several types of mopeds and motor quadricycles:

         •     The “class A moped”, that is, any 2 or 3 wheel vehicle with an internal combustion engine of maximum
               50 cm3 or with an electrical engine and that cannot by design and by the sole power of its engine,
               exceed the speed of 25 km/h on a level road;

         •     The “class B moped”, that is, any 2 or 3 wheel vehicle with an internal combustion engine of maximum
               50 cm3 or with an electrical engine and that cannot by design and by the sole power of its engine exceed
               the speed of 45 km/h on a level road,

               o and any 4 wheel vehicle with an engine of maximum 50 cm3 for spark ignition engines or whose
                 maximum net power output does not exceed 4 kW in the case of other internal combustion engines
                 and that cannot by design and by the sole power of its engine exceed the speed of 45 km/h on a
                 level road;
               o The maximum unladen mass of 3 wheel mopeds is limited to 270 kg; that of 4 wheel mopeds, to 350
                 kg; however, for electric vehicles, this mass does not include batteries.




19   www.hri.org/news/europe/midex/2002/02-05-15.midex.html#08

                                                                                                                   18
        •   The “motor quadricycle” designates any four wheel vehicle with an engine other than those considered
            mopeds, of maximum unladen mass of 400 kg or 550 kg for vehicles intended for carrying goods, not
            including batteries for electric vehicles, and of maximum engine power of 15 kW. Adding a trailer to a
            motor quadricycle does not change the classification of this vehicle.

Highway access is forbidden to motor quadricycles without a passenger compartment as well as to all vehicles that
cannot reach the speed of 70 km/h on a level road.

Drivers and passengers of motor tricycles and quadricycles and of class B mopeds without a passenger
compartment as well as of motorcycles must wear a safety helmet.

Users born before February 14, 1961 are not required to hold a permit.

4.2.5 – Other European countries

Italy

Italy applies the European directives. No licence required for light quadricycles. The minimum age is 14 years.

Holland

Holland applies the European directives. No licence required for light quadricycles. The minimum age is 16 years.

Finland

Finland applies the European directives. No licence required for light quadricycles. The minimum age is 16 years.
A physical aptitude test for driving is required for 2 wheel mopeds.

Denmark

The traditional driver’s licence is required for light quadricycles.

Portugal

A specific permit is required. The minimum age is 16 years.

Greece

Mopeds and diesel engine quadricycles are forbidden in large cities, however the electric versions are allowed.
The minimum age is 16 years. A physical aptitude test for driving is required for 2 wheel mopeds.

Spain

Spain applies the European directives. No licence is required for light quadricycles. The minimum age is 14 years.
However, an 8-hour training without examination is required.




                                                                                                                  19
Switzerland

In Switzerland, the quadricycle is certified as a slow vehicle. The minimum age is 16 years and a simplified licence
as moped is required.

Austria

Austria applies the European directives. No licence is required for light quadricycles. The minimum age is 16 years.
However, since July 1, 2001, a theoretical and practical training has been compulsory for drivers of 16 to 24 years
of age. Drivers in this age group need a motorcycle licence specifying "light quadricycle".

4.3 - AUSTRALIA
At present there are no regulations in Australia regarding the LSV. The federal government considers that the
import of these vehicles falls under the regulations of passenger cars (Australian Design Rules for motor vehicles)
and therefore they must comply with the same safety rules. Officially, LSV cannot operate on public roads as they
do not meet all the safety standards of a conventional car.

The federal government admits however that LSV have not yet been fully tested. The Ministry for Planning and
Infrastructure of Western Australia is currently lobbying the federal government to authorize a pilot project of 20
LSV20. The objective of the project is to evaluate the safety of LSV on roads of maximum speed of 70 km/h.

4.4 - JAPAN
There are two kinds of regulations in Japan. The first involves registration and the regulations of vehicles: the
Motor Vehicle Law. The second concerns driving: the Road Traffic Law.

Regarding driving, Japanese regulations recognize four classes of licences in the motorcycle and scooter
categories:

                o Class 1: for motors of maximum 50 cc (maximum speed of 45 km/h);
                o Class 2: for motors of maximum 155 cc (maximum speed of 60 km/h);
                o Class 3: for motors of maximum 400 cc;
                o Class 4: for motors of more than 400 cc.

The minimum age for obtaining these licences is 18 years. Drivers 16 years of age must ask for an authorization
from their school to obtain the class 1 to 3 licences.

                o For vehicles with motors of maximum 50 cc, regulations state that they can operate on roads where
                  the speed limit is maximum 30 km/h. They cannot have passengers, must be one meter from the
                  sidewalk and cannot operate on high speed roads.




20   Wendy Frew, Road safety chiefs ganged up to stall electric cars, The Sydney Morning Herald, October 2006

                                                                                                                20
           o Vehicles with engines of 50 cc to 124 cc may operate on roads with a maximum speed limit of 50
             km/h. They cannot carry passengers and cannot operate on high speed roads.
           o Vehicles with engines of maximum 400 cc may operate on roads designated as high speed roads
             with a speed limit of 80 km/h, as well as on other roads where the speed limit is 50 km/h. They
             cannot carry passengers.
           o Vehicles with engines of more than 400 cc may operate on roads designated as high speed roads
             with a speed limit of 80 km/h, as well as on other roads where the speed limit is 60 km/h. They can
             carry passengers.

4.5 – THE UNITED STATES
In the United States, each state is responsible for regulations regarding the operation of vehicles on its territory.
States can therefore require more stringent safety standards for the LSV, forbid access to certain roads or sectors,
but they can also vote laws to amend characteristics, such as the laws passed in the states of Montana and
Washington to legislate a new class of vehicles: the “Medium speed vehicle”.

The summary of the table showing American regulations by state and district (see Appendix 10) below shows the
summary of traffic regulations in the 50 American states (and one district):

     •     46 states and the District of Columbia authorize the operation of LSV under certain conditions

     •     39 states authorize the operation of LSV on roads of maximum 35 mph

     •     4 states authorize the operation of LSV on roads of maximum 25 mph:
           o New Jersey
           o Rhode Island
           o Washington (and 35 mph for Medium speed vehicles)
           o West Virginia

     •     2 states authorize the operation of LSV on roads of maximum 30 mph:
           o Maryland
           o Massachusetts

     •     4 states have not yet legislated the operation of LSV on their roads:
           o Connecticut o Idaho
           o Minnesota
           o Wisconsin

     •     1 state authorizes the operation of LSV on roads of maximum 40 km/h
           o Kansas

     •     1 state authorizes the operation of Medium speed vehicles on roads of maximum 45 mph
           o Montana




                                                                                                                 21
         •     Certain states added restrictions regarding the weight of the LSV or the inspection regulations.

Moreover, the driver must:

         •     Have a motor vehicle driver’s licence

         •     Register his vehicle

         •     Hold insurance.

Only two states do not require a driver’s licence (Nebraska and South Carolina) and two of them do not require
registration (Nebraska and Indiana).

It seems important to stress the fact that last year, two states chose to increase the speed of the vehicles and the
safety requirements.

4.5.1 – The concept of “medium speed vehicle”.

Recently, two states introduced the concept of “medium-speed electric vehicle”. Last summer, the state of Montana
passed a law concerning this type of vehicle21 (see Appendix 11). It states that a medium-speed electric vehicle
(MSEV) has the following characteristics:

         •     Has a maximum speed of 35 mph (56 km/h);

         •     Is propelled by an electric engine;

         •     Stores electricity in batteries or in other similar devices that it carries;

         •     Is fully enclosed and includes at least one door;

         •     has a wheelbase of 40 inches and a wheel diameter of 10 inches or greater;

         •     Complies with the federal regulations FMVSS 500.

The Montana act allows MSEV to operate on roads with a maximum speed limit of 45 mph (72 km/h). The law
states that the vehicle must be equipped with the following:

         •     At least two rear view mirrors;

         •     3-point seatbelts and

         •     a roll bar, roll cage or crush-proof body design.

The state of Washington has also introduced a bill regarding the MSEV22. House Bill 1820 authorizes the operation
of MSEV on state highways having a speed limit of 35 mph or less (56 km/h). The MSEV is described as an
electrically powered four-wheeled motor vehicle, equipped with a roll-cage or crush-proof body design whose
speed attainable in one mile is more than 30 mph (48 km/h), but not more than 35 mph (56 km/h).


21   http://data.opi.mt.gov/bills/2007/billhtml/SB0185.htm
22   Source for Washington State: www.leg.wa.gov/pub/billinfo/20078/Pdf/Bills/Session%20Law%202007/1820.SL.pdf

                                                                                                                  22
This new concept of MSEV is suggestive of the European distinction between light quadricycles and heavy
quadricycles. The state of Washington even imposes different driving restrictions to the NEV, allowed on roads
with a maximum speed of 25 mph (40 km/h), and the MSEV, authorized to operate on roads with a maximum
speed of 35 mph (56 km/h).

The inclusion of additional safety standards, such as 3-point seatbelts or of a roll 3 cage or crush-proof body
design, allows for a more precise selection between golf carts, golf carts adapted to the FMVSS 500 standard and
the LSV. These standards are related more to a minicar than to an offroad vehicle adapted to driving in an urban
environment.

4.5.2 – Transportation plans for the urban integration of LSV in the United States

In 1992, the state of California amended its traffic regulations to enable the municipality of Palm Desert to
implement a transportation plan integrating golf carts, the Golf Cart Transportation Pilot Program. The Palm Desert
transportation plan identified adapted roads that could be used by golf carts. The latter had also to be adapted to
meet certain safety standards: added headlamps and safety belts.

The Palm Desert transportation plan identified three types of roads:

     Class I          Golf Cart Path                  Off track roads reserved to golf carts and bicycles

     Class II         Golf Cart Lane                  Reserved lanes identified on public roads with a maximum
                                                      speed limit of 45 mph.

     Class III        Golf Cart Road                  Shared public roads with a speed limit of 25 mph.

More recently, the cities of Lincoln and Rocklin were authorized by order of the state of California to implement a
transportation plan including the LSV. Launched in 2006, the project was very successful and presently 600 to 800
LSV operate in the city of 40,000 inhabitants23.

The transportation plan of the city of Lincoln also includes three levels of routes24:

     Class I          Separate right-of-way           Separate roads, for the exclusive use of LSV, pedestrians and
                      – special paths                 bikes. These routes are 14 feet wide for two-way travel with a
                                                      minimum 2-foot wide graded area adjacent to the pavement.

     Class II         Reserved lanes where            Reserved lanes, adjacent to public roads, 7-feet wide (see
                      the speed may                   picture below).
                      exceed 35 mph
     Class III        Roads with a speed              All public roads, with a few exceptions, where the speed limit
                      limit of 35 mph.                does not exceed 35 mph. This last category includes the
                                                      majority of residential areas.




23
 Leo Rubio, project Engineer, City of Lincoln, California, February 2008
24
 City of Lincoln, NEV Transportation Plan, Final – August 2006:
www.ci.lincoln.ca.us/pagedownloads/Final%20NEV%20Transportation%20Plan.pdf

                                                                                                                       23
The municipality of Lincoln stresses that its inhabitants increasingly use LSV in the city streets to justify this
transportation plan. It also mentions the many advantages of the LSV: energy efficiency, air quality improvement,
offer of safe mobility for an aging population, affordable price, etc.).




Photo 1 LSV travelling in a reserved lane
Source:Neighborhood Electric Vehicle (NEV) Transportation
Plan, City of Lincoln, 2006


                                                    Figure 1
                                          NEV Plan of the City of Lincoln




                                                                                                              24
                                                                        Table 4
                                                                Summary of operating rules

                                             CANADA                                   UNITED STATES                           EUROPE
      Authority            Provincial                                       States                                European Union
                                                                                                                  Member countries

                           British Columbia:                                 • 46 states and 1 district           Europe:
                           Division 24 of the Motor Vehicle                     authorize the operation of        • Licence regulation:
                           Act Regulations allows LSV to                        LSV including:
                           travel without restriction on roads                                                     o o recommended age: 16
                           with a maximum speed limit of 40                     o 39 on roads with a speed             years
                           km/h and on roads with a maximum                       limit of 35 mph (56 km/h)
                                                                                                                   o o Licence is not compulsory
                           speed limit of 50 km/h if approved                   o 4 on roads with a speed limit        for
                           by the local authorities or if the                     of 25 mph (40 km/h)
                                                                                                                   o light quadricycles (before
                           municipality specifically regulates
                                                                             • the operation of LSVs is                2007)
                           their operation on its roads.25
                                                                                forbidden in 4 states              o o Theoretical licence
                           Ontario
                                                                                                                       required (after 2007)
                           Bill 169 The Transportation                       • 13 states require that the LSV be
                                                                                electrically powered               o o B1 licence for heavy
                           Statute Law Amendment Act
                                                                                                                       quadricycles
                           authorizing pilot projects involving              • 2 states (Washington -
                           LSV26.                                                                                  o o may travel on roads of
                                                                                passed a law to allow the              maximum speed of 90 km/h.
                           Quebec                                               operation of the Medium Speed
                                                                                                                 Member countries:
                           Act amending the Highway Safety                      Vehicle (maximum speed of the
                           Code                                                 vehicle 35 mph – 56 km/h with    • Licence between 14 and 18
                           passed on December 19, 2007                          more safety elements).             years, at the choice of the
                           and assented to on December                                                             countries
                           27, 2007 – Section 8127
                                                                                                                  • May include a practical test,
                                                                                                                    practical training, a medical
                                                                                                                    examination.




                           Regardless of the countries or the states, the operation of LSV is regulated by regulations limiting
                           access to certain roads: 35 mph (56 km/h) in most American states and 90 km/h in Europe. An
                           American state or a municipality may limit the access of LSV to specific areas or roads. In Europe,
                           member countries may not forbid the introduction of vehicles that meet the requirements of the
                           directive.


                           It is interesting to note a new regulation in two American states: the increase of the maximum
                           speed of the LSV (which becomes an MSEV) to 35 mph (56 km/h) instead of 25 mph (40 km/h)
                           with the requirement of strengthened safety standards for the vehicles.


                           We should also note the development of NEV transportation plans such as the City of Lincoln in
                           California that modified certain roads in order to better integrate the LSV into the urban traffic mix.


25
     British Columbia Ministry of transportation, Zero Emission Electric Vehicles, February 2008
26
     Ontario Ministry of Transportation, www.mto.gov.on.ca/english/dabdv/vehicle/emerging
27
     http://www2.publicationsduquebec.gouv.qc.ca/dynamicSearch/telecharge.php?type=5&file=2007C40F.PDF

                                                                                                                                                25
5 – EXPERIMENTAL PROJECTS

In the United States, traffic standards, regulations and rules are in constant evolution. In Canada, federal
standards evolve while, British Columbia excepted, the provinces have not yet decided to implement traffic rules.
On the contrary, Ontario, followed by Quebec, submitted a bill to authorize the operation of these vehicles in
planned and controlled situations through pilot projects.

5.1 – PILOT AND EVALUATION PROJECTS
5.1.1 - Quebec

In November 2007, the Ministère des Transports du Québec announced in Bill 42 an amendment to the Highway
Safety Code and the Demerit Points Regulations adopted on December 19, 2007 and assented to on December
27, 2007 – Section 81 enabling it to authorize the implementation of pilot projects to test the use of vehicles or to
study, improve or develop traffic rules or standards applicable to safety equipment. This initiative proposes to test
the use of LSV on public roads, to develop safe traffic rules and establish the equipment standards for LSV.

In April 2002, the Centre d’expérimentation des véhicules électriques du Québec (CEVEQ), based in Saint-Jérôme
in the Lower Laurentians, published the results of study of evaluation of the safe and reliable integration of LSV in
the urban traffic flow.28 The study concluded: "At the conclusion of this experiment, we understand that the users
and the public like the concept of LSV. This vehicle is new on the market and therefore it is important to implement
regulations, adequate safety measures and a better matching of the needs of consumers to the product at the
same time with its introduction on the road network. The LSV coming from the American lifestyle of “gated
communities” does not always meet the needs of active individuals who could use it to replace the
second car of the family. We noted that as it is now, the LSV cannot be allowed without restrictions in all
municipalities and on all road networks, even urban ones. However, we believe that the LSV meets an
individual as well as a collective need, that it can be safely integrated into traffic and that it has a place in
the urban environment.”

5.1.2 - Ontario

On November 21, 2005, the government of Ontario introduced a Bill allowing the provincial Ministry of
Transportation (MTO) to test new transportation technologies in real environments29. Bill 169, The Transportation
Statute Law Amendment Act, 2005 allows the Ministry of Transportation of Ontario to test LSV as well as electric
bicycles.

In September 2006, a 5-year pilot project for the evaluation of LSV was launched in provincial and municipal parks
and in fauna and flora conservation areas in Ontario.30




28 V. Lamy, CEVEQ, Évaluation de véhicules électriques à basse vitesse en milieu urbain : pilot project, final report, April 2002
29 Ontario Ministry of Transportation, www.mto.gov.on.ca/english/dabdv/vehicle/emerging
30
   Ontario Ministry of Transportation, www.mto.gov.on.ca/english/dabdv/vehicle/emerging

                                                                                                                                    26
The pilot project is limited to these recreational or ecological areas and the LSV can only be used by park
employees with a valid driver's licence. The LSV are allowed on the roads and pathways of these parks with a
speed limit of less than 40 km/h.

5.1.3 – The United States

In 2001, the United States Department of Energy produced an evaluation study of 348 LSV, used regularly in
15 vehicle fleets across the country31. The objective of the project was to help the staff of the Field Operations
Program to understand how NEV can be properly integrated in a fleet and if they could replace other, more energy-
consuming vehicles.

Out of the 348 LSV integrated in the 15 fleets, 104, i.e., 30% were purchased to replace the following vehicles:

       •      13 gasoline-powered cars
       •      5 pick-ups
       •      5 natural gas-powered golf carts
       •      42 gasoline-powered golf carts
       •      35 gasoline-powered scooters

Depending on the use they were intended for, the LSV operated on private and public roads as follows:

       •      56% on private roads
       •      32% on public roads
       •      12% indiscriminately on private and public roads

The study showed that 91% of the LSV did not have any problems. The fleet managers and the users were
inclined to use the LSV in their workplace.

The 348 NEV that accumulate an average of 1.9 million km per year, that is, an average of 5,486 km per NEV per
year, represent savings of 29,195 gallons of gasoline, that is, 87 gallons per NEV. From the environmental
perspective, savings of 351 kg greenhouse emissions per year per vehicle are estimated.

At the same time, the California Energy Commission (CEC) launched a pilot project for the introduction of LSV in
five cities in the state of California32.

The positive aspects of the users included:

       •      A 30 miles (56 km) range is enough;
       •      The 110 volts recharge system is very practical and more flexible than the 220 volts system on standard
              electric cars that require a recharging station;
       •      Reduced engine noise;
       •      Manoeuvrability when parking;
       •      Elimination of gas pump nuisances (smell and gasoline spills);


31 J. Francfort and M Carroll, Field Operations Program, Neighborhood Electric Vehicle Fleet Use, Idaho National Engineering & Environmental

Laboratory, Idaho, July 2001.
32 Arthur D Little, Demonstration of Neighborhood Electric vehicles (NEVs), Final Report to California Energy Commission, July 2002


                                                                                                                                               27
LSV are more performing and comfortable than golf carts;

      •      Low operating, maintenance and purchase costs.

The users mentioned the following negative aspects:

      •      Limited operation on several roads;

      •      Difficulty operating on fast traffic roads;

      •      The 25 mph speed limit is too slow;

      •      Vehicles have less room than conventional cars.

5.2 - NEV COMMUNITIES
There are approximately 20,000 gated communities throughout the world (about 8.4 million people) focused in
part on LSV and silent, non polluting and safe mobility. The city of Celebration in Florida is the archetype of this
type of communities. Built in the nineties for a cost of 2.5 billion dollars by Walt Disney Co. in the county of
Osceola, near the Walt Disney World Resort, the city of Celebration has 2,736 inhabitants. The city plan was
developed around a small central marketplace accessible on foot. At the time of its creation in 1996, the urban
design of Celebration wanted to be roomy but also user-friendly, on a human scale. Around the same time,
Bombardier developed its NEV and planned to integrate it massively in new communities such as Celebration33.

Another city where the LSV is very popular is Coronado, a suburb of San Diego, California. This city with over
24,000 inhabitants experienced an explosion of LSV sales since the mayor, Mr. Tom Smisek, began using this type
of vehicle for his daily commute (2005). According to the local LSV dealership, 15 LSV are sold monthly in the city
of Coronado34.

In Hong Kong, a new residential development called Discovery Bay, on the northeast coast of the island of Lantau
in the New Territories covers an area of 6.5 square kilometers and has 14,300 inhabitants. Cars are not allowed in
the community with the exception of emergency and delivery vehicles. The city only allows the operation of
maximum 500 golf carts and LSV35. This has obvious inflationist consequences on the price of golf carts and LSV.

In Canada, the small municipality of Leaf Rapids, 1000 km north of Winnipeg, Manitoba, plans the aggressive
marketing of the use of golf carts in its streets. The first Canadian municipality to forbid the use of plastic bags in
grocery stores, the mayor of Leaf Rapids plans to offer 66 golf carts to the buyers of houses that the city bought
back in March 2008. The mayor, Ed Charrier, hopes to boost in this way this small community deeply hurt by the
closing of the local mine. He also plans to offer buying incentives to long-term residents36.

                           Many experiments in a real use environment demonstrated the interest and reliability of
                           LSV. The conclusions of these experiments on various continents and in various use
                           environments were positive (improvement of air quality, speed reduction) and all state that
                           the LSV provides a mobility alternative that is ecological and complements the global offer.




33
   Source: http://celebrationfl.blogspot.com/2006/03/never-say-nev-er.html
34
   Janine Zuniga, Coronado’s electric cars enjoying life in the fast lane, SignOnsanDiego.com, May 29, 2007.
35
   See http://en.wikipedia.org/wiki/Discovery_Bay
36
   Kathryn Young, Town that banned bags touts golf carts, CanWest News Service, August 23, 2007

                                                                                                                      28
6 – PRODUCT SUPPLY AND EMERGING MARKETS

6.1 – MARKET TRENDS
6.1.1 – United States

Initially, the low speed vehicle powered by an electric motor appeared in the United States to meet the need of
gated communities for travel over short distances in a controlled environment. Then, the number of states allowing
the operation of LSV on roads with a speed limit of 35 mph kept growing during the last ten years, to 47 states out
of 51. Several companies launched into the manufacture of LSVs, such as Bombardier, a precursor who did not
pursue the marketing of its product.

GEM (Global Electric Motorcars), an American company and subsidiary of DaimlerChrysler, has been producing
and distributing an entirely new vehicle since 1998, 100% electrical, adapted to proximity travel. Almost ten years
later, GEM has sold more than 40,000 vehicles in the United States and is beginning to spread globally (Asia,
Europe). Last year, GEM signed an agreement with Matra to manufacture and distribute its product in Europe,
where the golf cart market has already acquired a certain notoriety for more than twenty years. These small leisure
vehicles are used in tourist and rural areas, local communities, recreation parks, air, naval and military bases, large
industrial sites, universities and campuses and in downtown areas.




                                                     Figure 2
                                   GEM operating environment (2003-2005)




           Source: GEM, Lawrence J. Oswald, ZEV Technology Symposium, 2006, Sacramento, Califormia



                                                                                                                   29
According to Tim Fullerton of the Electric Drive Transportation of America (EDTA), the growth of the LSV market
and particularly the proliferation of golf carts on the roads determined many states to legislate this type of vehicle.
The market growth assumptions that served, among other things, to guide the LSV regulations in several states
are:

               •   A growth potential of the LSV market of 25% per year;
               •   A growth of golf cart sales of 8% per year;
               •   10% of all golf carts are adapted to reach the performance of the LSV;
               •   More and more users use public roads for their daily travel.

In California, a pioneering and progressive state in the field of advanced transportation, the LSV fleet, excluding
golf carts, seems to be of 16,000 units. Since 1998, approximately 1,000 LSV have been bought by vehicle fleet
managers or by individuals on a yearly basis37. The LSV sales reached a maximum between 2001 and 2003, when
the tax credit program for Zero Emission Vehicles-ZEV was introduced. More than 80% of the LSV market in
California seems to be taken by Global Electric Motors (GEM).

The LSV market, relatively small in institutional and private fleets compared to other vehicles, is nevertheless
interesting. Its mobility niche, although seemingly limited, shows positive elements. The LSV is making a place for
itself in airports, park services, maintenance services and is used by several government and military authorities
for closed circuit travel.

The following table presents the details of vehicle types with advanced engines in the various market niches
identified.

                                                         Table 5
                             Number and types de vehicles by market niche in the United States38

     Market niche            B20        B100 CNG Elec E85            H2 Hyb LNG LPG M85 LSV TOTAL
     Airport                 124        0        1629 212    0       0     7       122    44     0         76    2214
     Delivery/Transportation 708        127      1556 106 23         4     1001 47        1970 0           0     5542
     Light vehicles          1384       0        4851 227    3251    11 3343 0            1909 0           2     14978
     Maintenance             71         24       327  0      1314 0        39      0      52     2         190 2019
     Off-road vehicles       1607       425      0    399    0       0     0       0      116    0         115 2662
     Other/Governments       3775 68             1492 100 7123 5           115 60         486 0            563 13787
     Police services         1          0        1901 13     2       0     18      0      21     0         5     1961
     School buses            9620 0              631  0      0       0     0       0      909 1            0     11161
     Shuttles                87         13       487  14     0       0     17      0      812    0         0     1430
     Public transportation   66640 339           2532 11     0       0     462 1361 705 0                  0     72051
     Park services           7          120      15   10     2       0     10      0      1      0         31    196
     Mail service            0          0        428  22     1350 0        0       0      0      0         0     1800
     Public services         223        0        1107 17     636     0     13      0      121    0         2     2119
     Garbage trucks          56         6        200  0      0       0     0       887 28        0         0     1177
     TOTAL                   84303 1122 17156 1131 13701 20 5025 2477 7174 3                               984 133097
      B20: 20% biofuel and 80% diesel, B100: 100% biofuel, CNG: compressed natural gas, Elec: electrical, E85: 85%
      ethanol and 15% gasoline, H2: hydrogen, Hyb: hybride, LNG: liquefied natural gas, LPG: Propane, M85: 85%
      ethanol, LSV: low speed electric vehicles.




37 Lawrence J. Oswald, Impact of Neighborhood EV (NEV) Use in California on Air Quality, ZEV Technology Symposium, Scramento, California.
September 25-27, 2006
38 P. Bergeron and V. Putsche, Clean Cities Annual Metrics. Report 2006, National Renewable Energy Laboratory, Technical Report NREL/TO-

540-41753, July 2007, page 6

                                                                                                                                     30
An increasing number of small businesses for LSV are appearing on the US market (see Table 5). The size of the
market, the strong arm greenhouse emissions reduction and energy efficiency strategies, associated to generous
incentives promote the commercial deployment of alternative technologies and of products adapted to new mobility
modes.

6.1.2 - Canada


                                                   Dynasty Electric Car Corporation is the first manufacturer to
                                                   design an LSV 100% electrical. Based in Delta, British
                                                   Columbia, it has been marketing its IT product since 2001,
                                                   mostly in California and the Northwest states.

                                                   It has sold almost 500 vehicles so far.




                                                   In September 2006, Zenn Motor Company from Toronto
                                                   opened its production plant in Saint-Jérôme, Quebec.

                                                   The ZENN car is the result of a French partnership with
                                                   Microcar, which has over 35 years of experience in the
                                                   design of heat engine minicars. The complete electrification
                                                   of the ZENN was done jointly with ITAQ.

                                                   During its first year of marketing, ZENN Motor Company sold
                                                   almost 300 vehicles on the US market. Through its
                                                   European partner, Microcar, ZENN should be marketed
                                                   soon on the European market.




                                                   The Nemo (Neighboordhood electric Mobility) company,
                                                   based in Ste-Thérèse, Quebec, develops a small, low-speed
                                                   utility vehicle.

                                                   The company is at the preparation stage of manufacture.




                                                                                                              31
6.1.3 - Europe

The quadricycle has been used in France for more than 25 years. This vehicle, related to low speed vehicles,
since its speed is limited to 45 km/h and has safety standards below those of passenger cars, is however diesel
propelled in most cases with a very low consumption (3.5 l/100 km). The notoriety of the vehicle is not the
consequence of an environmental concern, like the North-American LSV, but is due rather to the fact that the
vehicle did not require a driver's licence and met the needs of a certain population.

Since 1992, quadricycles meet a European manufacturing standard and therefore may be sold in all the countries
of the European Union according to the traffic rules specific of each country. However, the light quadricycle market
took off in 1997, after the implementation of European regulations. Originating in France, the quadricycle is
increasingly spreading through Europe. In 2006, the number of LSVs in circulation was estimated at over 300,000,
a third of which are in France. Annual sales apparently reach 30,000 units.

                                                     Figure 3
                                      Distribution of LSVs in Europe (2006)




                                                                                                                32
In Europe39, several manufacturers offer a diverse range of products. Aixam, a French company, is the leader in the
field of LSVs, with almost 40% of the market and annual sales of 14,000 units. Microcar, a branch of the French
group Bénéteau, is second with 25% of market shares in France and 23% in Europe. Ligier follows Microcar
closely. (See Figure 4 below).

Last but not least, Chatenet completes the French offer with a model targeting a young clientele. It seems that in
2003, Chatenet’s sales rose by 37.2%, particularly among young Italian urban drivers (important breakthrough in
Roma and Milano). Chatenet sells 70% of its products in Italy.

The other European manufacturers that should be mentioned are Tasso, GrecaV, Casalini and Piaggio (Italy),
ATW (Germany), VBI (Holland) and GoingGreen (England). At present, the market shares of these companies are
not known.

                                                               Figure 4
                                      Sales of the main European manufacturers (2002)




                                          Source : www.libertycars.fr/savoirplus-marche.html




39
     Data obtained from www.viamichelin.com/viamichelin/gbr/tpl/mag4/art20050401/htm/rte_VSP.htm

                                                                                                               33
6.1.4 - Asia

There are three main manufacturers: Mitsuoka, Toyota Auto Body who manufacture and
market small, low speed vehicles called COMS (compact, single seat vehicles).

                                     REVA Electric Car Company, based in Bangalore,
                                     India, has been manufacturing electric, low speed
                                     vehicles at competitive prices since 1994. The
                                     company markets its products in England, Italy, Malta,
                                     Sri Lanka and Greece, where approximately 2,000
                                     vehicles travel on the road. REVA is trying to enter the US market.




6.1.5 - Australia

According to Mark Ray, Sales Manager for Club Car Marketing Pty Ltd, a company that sells golf carts and LSV, the
Australian market is emerging, particularly in gated communities40. The company sells 300 LSV annually throughout
Australia, including 200 for public fleets and 100 sold to individuals. Demand for the use of LSV on public roads is
growing.




40   Statement of October 23, 2007

                                                                                                                34
                                                          Table 6
      Product offer (not exhaustive) on the international market with several characteristics

Product Type         Manufacturer            Engine          Maximum     Range     Main     Estimated     Selling
                                                              speed               markets    annual        price
                                                                                             output
                                                      CANADA
                  Dynasty                   Electrical 4      40 km/h    50 km      US      1000~1500    $18,000
                  www.itiselectric.co       kW                                                           US
                  m



                  ZENN Motors               Electrical,       40 km/h    70 km      US      1000~1500    $13,600
                  Toronto                   5.6 kW                                                       US
                  www.zenncars.com




                     NEMO NEV               Electrical,        40 km/h   110 km     US
                  www.nev-nemo.com            4 kW



                                                 UNITED-STATES
                  Global Electric           Electrical 4      40 Km/h    40 km      US      ~3500 aux    $7,500 US
                  Motorcars                 kW                                    France    US ~5000
                                                                                   Asia)    throughout
                    Dakota du Nord                                                          the world
                   www.gemcar.com


                  Miles Electric            Electrical 4      40 km/h    70 km      US
                  vehicle California        kW
                  www.milesev.com


                  Cart-Rite-                Electrical,       30 km/h    70 km      US
                  Connecticut
                  www.cart-rite.com         kW




                  Columbia ParCar           Electrical,       40 Km/h    40 km    US
                  Corp - Wisconsin
                  www.parcar.com            4 Kw



                  Western Golf              Electrical,       40 km/h    60 km      US
                                            4 kW
                  Carts - Californie
                  www.westerngolfcar.com/




                                                                                                                   35
Product Type         Manufacturer               Engine        Maximum    Range    Main     Estimated   Selling
                                                               speed             markets    annual      price
                                                                                            output

                                             UNITED-STATES
               E-Ride industries -         Electrical, 16.5   40 km/h   88 km    US
               Minnessota                  hp
               www.e-ride.com




               EVT Solutions –             Electrical, 4 kW   40 km/h   60 km    US        <100        $10,000
               Michigan                                                                                US
               www.ecovelectric.com



               Solar Bug –                 Electrical         35 mph    60 km    US        <100        $9,500
               Montana                                                                                 US
               http://www.freedrive-ev.c
               om/index.html

               Tomberlin                   Electrical         40 km/h   50 km    US                    $ 5,499
               E-Merge                                                                                 US




               Planet EV                   Electrical         40 km/h            US                    $ 8,995
                                                                                                       US




               Revolution Electric         Electrical         40 km/h   80 km    US                    $ 8,999
               Car                                                                                     US




               KURRENT                     Electrical         40 km/h            US                    $ 9,800
                                           48 V                                                        US
                                                                                                       $
                                                                                                       13,900
                                                                                                       US



               Bigman Electric             Electrical,11 hp   35 km/h            US                    $11,000
               Vehicle -                                                                               US
               Oklahoma
               www.bigmanev.com



                                                                                                       36
Product Type         Manufacturer               Engine           Maximum    Range    Main         Estimated   Selling
                                                                  speed             markets        annual      price
                                                                                                   output

                                                    FRANCE
               Aixam www.aixam.com          MHeat engine         45 km/h   450 km   700           14,000      8,000 €
                                            Kubota, 400                             distributor
                                            cm3                                     s in
                                                                                    Europe
                                                                                    Overseas
                                                                                    Territories

               Automobiles Ligier           Diesel,       two-   45 km/h            France        ~5000
               www.ligier-                  cylinder                                Europe
               automobiles.com              4 stroke engine
                                            505cc

               Microcar                     Heat engine          45 km/h            France        ~5000       9,900 €
               www.microcar.com                                                     Overseas
                                                                                    Territories
                                                                                    Europe
                                                                                    Turkey


               Simpa JDM www.simpa-         Heat engine                             France
               jdm.com




               Bellier                      Diesel 4 stroke                         France
                                            YANMAR                                  Europe
               Automobiles
               www.bellier.fr



               Automobiles Chatenet              Diesel                             France                    10,950
               www.automobiles-chate             505cc                              Europe                    €
               net.com



               Tender www.tender.fr         Electrical, 4 Kw     45 km/h   70 km    France                    11,000 €
                                            or 12 kW                                                          light
                                            (heavy)                                                           quad and
                                                                                                              15,000 €
                                                                                                              heavy
                                                                                                              quad

               Venturi                      Electrical,          50 km/h   50 km    France        <100        24,000
               www.venturi.fr/vehicules     11 kW                                                             €
               -eclectic-concept.html



                                                   GERMANY
               Auto Thomas Walther          Electrical, 2 kW     15 km/h   50 km    German                    15,500
               GmbH                                                                 y                         €
               www.atw-leichtfahrzeuge.de




                                                                                                              37
Product Type         Manufacturer             Engine           Maximum    Range       Main     Estimated   Selling
                                                                speed                markets    annual      price
                                                                                                output

                                                        UK
               GoingGreen                 Electrical, 2.2      45 mph    48 mph      UK                    £7,999
               www.goingreen.co.u         kW
               K


               NICE (no Internal          Electrical, 4 kW     65 km/h   80 km       UK                    14,600
               Combustion                                                                                  €
               Engine)
               www.nicecarcompany.co.uk

                                                       ITALY
               Casalini                   Heat engine                                Italy
               www.casalini.info/ind      Mitsubishi                                 Europe
               ex-fr.html                 538cc


               EFFEDI                     Electrical           45 km/h   70 km or    Italy
               Automotive Group           4 kW, diesel,                  500 km      France
               www.maranello4cycle.com    gas or hybrid                  in hybrid
                                                                         mode

                                                       INDIA
               Reva – India               Electrical, 6 kW     80 km/h   70 km       India     Over
                                                                                               2000
               www.revaindia.com                                                     England   units
                                                                                               sold


                                                   CHINA
               www.chinadepot.co          Electrical, 6.5      65 km/h   130 km      China
               m/electriccar.html         kW




                                                   JAPAN
               Toyota Auto Body                                                      Japan
               www.toyota-
               body.co.jp


                                             SOUTH KOREA
               Advanced                   Electrical           40 km/h   56 km       South
               Transportation                                                        Korea
               Technology R&D
               www.attrd.com




                                                                                                           38
6.2 – The LSV: AN ALTERNATIVE MOBILITY OFFER
While waiting for the marketing of a performing electric vehicle, the LSV offers an interesting alternative. The LSV
seems to be a vehicle designed for short trips in an environment where the speed is controlled and the quality of
mobility supersedes the speed.

The advantages of the LSV in an urban environment are:

         •      Non polluting
         •      Silent
         •      maneuverable and easy to drive
         •      User-friendly and attractive
         •      Takes little room in the traffic and parking areas
         •      Economical: about 50 cents to charge up
         •      Recharges by itself at night, connected to a standard outlet
         •      Costs $7,000 to $15,000

Its disadvantages:

         •      Has a limited road autonomy (approximately 50 km), although it is sufficient in a city
         •      Does not have the safety standards of a passenger car

The LSV also meets the mobility needs of an increasingly aging population. The baby boomers generation is a
very important cohort of the population of Quebec. This generation is globally very well educated, in good health
and careful in its choices in life. An aging population creates a change in behaviour, particularly regarding mobility.

For the past several years, the number and proportion of driver’s licence holders over 65 years old have been
growing41. In 2000, there were more than 504,200 holders over 65 years, compared to approximately 378,000 in
1994.

A study undertaken in Quebec reveals that drivers over 68 years old drive an average of 9,774 kilometers per year,
which means 26.8 km/day. The number of kilometers people over 78 years drive is lower. The explanation for this
situation is undoubtedly the health of individuals in this age group. Individuals in excellent health drive 8,557
km/year, compared to 5,800 km/year for the others. Also, 70% of the elderly drive their car every day.

In Quebec as well as elsewhere, drivers 65-74 years old are increasingly involved in accidents. The ratio is
considerably higher for drivers over 75 years old. A study of the demographic changes anticipates a global
increase of 14% of drivers involved in road accidents between 1995 and 2016.

North American data shows that people over 80 years old represent a risk similar to young drivers, 16-19 years of
age. However, it has been shown that given the health status of elderly drivers, the number of kilometers
decreasing with age, this reduces the higher risk noted.




41   The following information was taken from: Politique de sécurité dans les transports 2001-2005, Volet Routier, MTQ, 2001, p. 41-42.

                                                                                                                                          39
6.3 – MARKETING-FACILITATING MEASURES
In the transportation sector, marketing-facilitating measures are important levers for the development of new
industrial and commercial segments. In the United States, California has been a pioneer in the sector of advanced
ground transportation, particularly in the introduction of less energy-consuming and less polluting vehicles. The
state and its many advocates propose measures worth examining. Here are a few examples:

      •      The Los Angeles Department of Water & Power offers a 2.5 cents reduction per kW/h for the recharging
             of an electrical vehicle (EV) off peak hours, at night and during the week-end42. The agency estimates
             that the energy use cost of an electric vehicle is $1.25 for a distance of 75 miles, compared to $7 for a
             gasoline operated vehicle.

      •      The Sacramento Municipal Utility District (SMUD) offers a reduction of 4.18 cents per kW/h for the
             recharging of electric vehicles. According to SMUD, this measure helps reduce by $125-$250 the annual
             energy consumption costs of an electric vehicle43.

      •      The Pacific Gas and Electric Co. also offers a reduction ranging between 4.4 and 5.1 cents per kW/h for
             the recharging of EV and LSV during off-peak periods44.

      •      The Southern California Edison offers two rates for the EV recharge: The TOU-EV-2, the rate for
             recharging during peak hours, and the TOU-EV-1 for off-peak periods, that allows for reductions of up to
             7.8 cents per kW/h45.

      •      The cities of Vacaville and Dixon offer grants of $6,000 for the purchase or rental of an electrically
             powered vehicle and of $6,800 for a compressed natural gas vehicle. These grants add to those offered
             by the state of California. According to the municipal authorities, these grants reduce the rental fee of an
             EV to $173 per month46.

      •      The California Air Resource Board (CARB) has recently implemented new incentives regarding the EV
             and the LSV. The Driving Alternatives program has a budget allowance of $1.8 millions and is in force
             between May 2007 and March 2009. A purchase grant of up to $5,000 per vehicle is offered to
             consumers47.

      •      Throughout the state of California and the United States, several private companies followed in the steps
             of the various levels of government48. Hiperion, a software company based in Santa Clara, offers up to
             $5,000 for the purchase of a hybrid vehicle by its employees. Hiperion invests $1,000,000 each year in
             its incentives program for the purchase of EHV. In February 2007, the Bank of America (BofA)
             announced a similar grant program for the purchase of EHV by its employees. The BofA offers a $3,000
             subsidy for the purchase of a hybrid.




42 www.ladwp.com/ladwp/cms/ladwp002056.jsp
43 www.smud.org/community-environment/evs/index.html
44 www.pge.com/about_us/environment/electric_vehicles/
45 www.sce.com/CustomerService/RateInformation/ResidentialRates/ElectricVehicles.htm or

http://driveclean.ca.gov/en/gv/incentives/index_des.asp?incentiveid=42
46 http://cityofvacaville.com/departments/public_works/e_cng_vehicles.php
47 http://driveclean.ca.gov/en/gv/incentives/index_des.asp?incentiveid=73
48 www.hybridcars.com/corporate-incentives.html


                                                                                                                     40
      •      Many other companies offer subsidies to their employees for the purchase of hybrid and electric vehicles.
             We should mention the best known: Google ($5,000), Clif Bar & Co ($5,000), Integrated Archive
             Systems ($10,000), Timberland ($3,000 or $6,000 for employees with over two years of seniority),
             Patagonia ($2,000) and DLA Piper US LLP ($2,000), the second largest legal firm in the world.

      •      The Los Angeles Airport offers free parking for EV where recharging stations are installed49.

      •      Several cities in the state offer free parking for LSV and EHV in areas regulated by parking meters:
             Hermosa Beach, Los Angeles, San Jose, Santa Monica50;

      •      Several hotels have also begun to offer incentives51. The Fairmount Hotel in San Jose offers free parking
             for EHV. The Argent Hotel in San Francisco cut its parking fees in half for EHV. At the Little River Inn, a
             hotel several hours north of San Francisco, EV owners are offered a free night for a stay of two nights.

      •      In France, the government offers 5,000 F on the purchase of an electric vehicle, the lowest road tax is
             applicable, parking is free, 100% depreciation is awarded to businesses and no tax is imposed on the
             electric power used to fuel the LSV.

      •      In Italy, only electric vehicles may be driven Sundays in Torino.

      •      The Japanese government announced a $2,600 subsidy for the purchase of a REVA.



               Although the LSV market is growing and spreading to more and more countries, it is
               obvious that the sale of these small cars is marginal compared to the automobile
               market. Even though it has many advantages, nevertheless the LSV meets a specific
               mobility need, namely certain types of travel in institutional and private fleets.

               The elderly, wishing to preserve their travel autonomy, have few alternatives to the
               passenger car. The LSV may offer to this sector of the population a product adapted to
               their short-distance travel.

               With the help of tax incentives, governments encourage more and more the sale of
               electric vehicles, including the LSV.




49 www.lawalorg/lax/parjingrate.cfm
50 www.eere.energy.gov/afdc/progs/view_ind_mtx.cgi?tech/HEV/CA/0
51 http://driveclean.ca.gov/en/gv/incentives/index_des.asp?incentiveid=64


                                                                                                                    41
7 – THE LSV AND SAFETY

The LSV may resemble a small car however, whether in the United States, Europe or Japan, this type of vehicle
does not meet the same construction, operating or safety standards as a passenger car. The LSV is simply a new
mode of transportation on which severe regulations are imposed regarding its operation on the road, regardless of
the country.

When examining the issue of the safety of the LSV and of its occupants when it operates on public roads, several
parameters must be taken into account:

         •      The speed limit of 40 km/h
         •      The speed of the other vehicles that use the same roads as the LSV
         •      The minimal safety elements and the weight of the vehicle

As recommended by the CEVEQ52 study, if LSVs were authorized in Quebec, they would be limited to roads with a
speed limit of 50 km/h, that is, mainly an urban environment. Therefore, in this chapter we will discuss the
importance of a controlled speed in the city to allow for multimodal conditions (bike riders, pedestrians, scooters,
cars, trucks).

Then we will try to understand the advantages and disadvantages of such a vehicle and its behaviour in traffic.

Last, we will mention the road accident statistics we collected mainly in Europe, since the United States did not
undertake surveys specific of LSV.

7.1 – THE LSV IN URBAN TRAFFIC
Whether in France, the United States or in pilot projects in Quebec, the LSV does not seem to be a disrupting
vehicle in an urban environment.

The study performed by CEVEQ made an evaluation of the impact of seven LSV that operated daily for three
months in an urban environment in Saint-Jérôme (60,764 inhabitants) covering an area of 89.3 km2. No collision
occurred. When answering surveys, users could note several differences at the level of their perception of their
safety depending on the roads used. It seems appropriate to mention these differences:

The urban network:

         •      Residential areas where the speed is 30-40 km/h lend themselves well to LSV traffic
         •      The congested urban environment did not bother too much users with LSV with hard doors, but made
                part of those traveling in LSV without doors (GEM) feel unsafe.
         •      One-way streets could cause problems repeatedly if the driver feels that (s) he is slowing traffic and if
                overtaking is difficult in the city.
         •      Two-way streets caused no inconvenience since the other vehicles could overtake the LSV.




52
     V. Lamy, CEVEQ, Évaluation de véhicules électriques à basse vitesse en milieu urbain : pilot project, final report, April 2002

                                                                                                                                      42
        •    On the major urban roads where the speed limit is 50 km but the road configuration (straight line)
             encourages speeds of 10 to 20 km/h above the limit, it is obvious that the user felt very vulnerable given
             the higher speed of the other users.

The perception of LSV drivers:

        •     Only 6% have never felt safe during their travels.
        •     33% often felt vulnerable due to the lack of hard doors.
        •     64% of users felt that the LSV was not always fast enough to follow the traffic flow.
        •     97% suggested an increase of the top speed of the LSV, the majority to 50 km/h since it is a usual speed
              in the city and it would encourage a better flow.

7.1.1 – The impact of speed on road safety

The SAAQ mentions that a reduction of 3 km/h of the average traffic speed would help reduce by 15% annually the
number of wounded and dead53. On the other hand, a study performed in 2003 by the École Polytechnique de
Montréal shows that if the drivers of the cars examined had complied with the speed limit of 50 km/h, the
number of collisions involving severe injuries and death would have been reduced by 44%54.

According to the data in accident reports, in 25% of deadly accidents, 19% of accidents with severe injuries and
13% of accidents with non life threatening injuries, exceeding the speed limit is the most important factor
contributing to the accidents.

The SAAQ launched a website reserved to the public education of drivers regarding high speeds and road safety:
www.50000victimes.com. It states that ”a superficial distribution of the accidents shows that 66% occur on the
municipal network, representing 80% of the network in Quebec. As for the accidents causing severe injuries,
they occur frequently on the municipal network (52%), more specifically on roads where the speed limit
is 50 km/h (34%) and where there generally are more vulnerable users (pedestrians, bike riders, skaters,
elderly). The ratio of accidents involving light injuries and material damages is also very high on the municipal network,
63% and 68% respectively. It is therefore essential to promote not only actions for safety on the roads under the
jurisdiction of the Ministry, but also actions for safety in the municipal environment55.”




53 www.saaq.gouv.qc.ca/prevention/vitesse/ralentir/10km   h. html
54 M. Gou, B. Clément, O Bellavigna-Ladoux, Incidence de la vitesse sur le risque d'être impliqué dans une collision grave ou mortelle en
milieu urbain, École Polytechnique de Montréal, March 2003.
55 Politique de sécurité dans les transports 2001-2005, Volet Routier, MTQ, 2001, p. 12

http://www.mtq.gouv.qc.ca/portal/page/portal/Librairie/Publications/fr/securite/politique.pdf

                                                                                                                                            43
7.1.2 - Municipal trends

On October 31, 2007, a tragic event reminded the residents of Quebec of the issue of speeding on provincial
roads: a three year old little girl going treat or treating on Halloween night in her neighborhood was killed by a
young driver. This accident relaunched the debate on speeding in Quebec, particularly in residential areas.
According to the Journal de Montréal, one in two Quebec residents drives at a speed exceeding the speed limit in
an urban environment56.

For the past several years, many municipalities have tried to educate their residents regarding compliance with
speed limits. Some have even been lobbying the provincial government to allow reduced speed limits in urban
areas, particularly in residential neighborhoods57.

         •      In September 2005, the city of Gatineau launched a wide public education campaign concerning speed
                reductions. The campaign stated that speeding was the main cause of approximately 4800 traffic
                accidents in 2004, an average of 13 per day;
         •      In July 2007, the cities of Boisbriand and Repentigny also launched public education campaigns to
                reduce speed limits in residential neighborhoods;
         •      In June 2007, the city of Rivière-du-Loup launched a campaign “against irresponsible speed-related
                behaviour”;
         •      In September 2005, politicians of the city of Saguenay tried to persuade the Ministère des Transports du
                Québec to reduce the speed limit on roads under provincial jurisdiction in the rural sectors of the city
                from 80 km to 60 km;
         •      In October 2005, the city of Sherbrooke launched a campaign against speeding. Residents of the
                Jacques-Cartier arrondissement had lobbied for the improvement of the quality of life in residential areas.
         •      On November 1, 2007, the city of Montreal resumed its efforts to persuade the ministère des Transports
                du Québec to grant it the “Montreal clause” that would enable the metropolis to legislate speed limits
                directly. According to André Lavallée, Transportation Officer for the city of Montreal, traffic regulations
                should be amended to reduce speed limits in municipalities. The speed limit would be reduced from 50
                km/h to 40 km/h;
         •      In October 2007, the city council of the city of Prévost, in the Lower Laurentians, decided to lower the
                speed limit in urban area to 40 km/h.




56   Vitesse au Volant en 5 minutes, Ralentir, ça sauve des vies, Journal de Montréal, Friday, November 2, 2007 edition, page 15.
57   Association des Municipalités du Québec (AMQ).

                                                                                                                                    44
7.2 – THE LSV AND SAFETY
The LSV is a vehicle designed and adapted to operate in circumscribed areas with reduced speed limits. From this
perspective, the LSV meets the requirements of federal regulations that set the safety limits of the vehicle in
relationship to a passenger car.

The LSV:

         •     Is a light vehicle: it weighs up to 1,300 kg.
         •     Is a slow vehicle: it operates at a maximum speed of 40 km/h
         •     Has minimal safety accessories: mirrors, seatbelt, emergency brake.

LSVs are small vehicles with a weight of maximum 1,300 kg. According to the principles of physics, the smallest
vehicles incur the greatest damages in traffic collisions because the acceleration of each vehicle involved in the
collision is inversely proportional to their mass and because their capacity to absorb the energy transferred during
collisions is proportional to the mass of the vehicle.

Some manufacturers, particularly in Europe, raise the
safety standards and exceed the manufacturing
standards required by regulations. In Europe, for
example, all quadricycles meet the requirements of
lateral and frontal crash tests and rear collision.
Manufacturers prefer to use flexible plastic parts that
absorb weak shocks. For example, Microcar included
an exclusive passenger protection system consisting in
a shock-absorbing engine support, a strain limiting
safety belt and a driver-sde airbag. According to the
manufacturer's notice, the shock-absorbing engine
support protects the cabin and reduces five times the
violence of the shock at 45 km/h. Moreover, wearing the
strain limiting safety belt combined with the Airbag
system may reduce head and chest injuries up to 75%
in frontal collisions58.
                                                                          Frontal collision test on a LSV




58   www.microcar.fr

                                                                                                                45
7.3 – ROAD ACCIDENT DATA
7.3.1 – The European experience

There is no European road accident data for LSVs that we could analyze over an extended period. The statistics
we will analyze in this chapter come from the Observatoire national interministériel de la Sécurité Routière
(ONISR) that each year publishes official French road accident statistics. France is presently the only country
where official statistics of road safety distinguish between quadricycles and the other means of mechanical
transport. This is due to the fact that quadricycles were introduced a long time ago on French roads, together with
the pertaining legislation59.

In 1996, several quadricycle manufacturers joined forces and created the Association Européenne des Fabricants
et Importateurs de Quadricycles (AFQUAD). The Association became EQUAL – European Quadricycle League or
European Association for the Promotion of Quadricycles – and it ensures the promotion and support of the
quadricycle everywhere in Europe and the world. The association also represents the partners in the quadricycle
industry, particularly importers.

Registration

Although in France the registration of LSVs has been mandatory since 1992, the exact number of vehicles in
circulation is not known and EQUAL estimates that approximately 140,000 are on the road.

Figure 5 below shows that after several years of decrease until 1995, annual registrations of LSV increased until
2006. According to EQUAL, less than 40% of the annual registrations of LSV are for new vehicles.

                                                     Figure 5
                 Evolution of the number of registrations of new and second hand LSV (1992 to 2006)




59   EQUAL, la sécurité des quad ricycles, 2006

                                                                                                               46
Accidents

The introduction on January 1, 1993 of a new BACC (Bulletin d’analyse d’accident corporel de la circulation)
[Bulletin of analysis of personal accidents], identical for all police and gendarmerie services and including the entity
"LSV” enabled the indexing of the road accident data of these vehicles. The table 7 below presents the history of
accidents until 2006:

                                                            Table 7
                                   Personal accidents and victims in LSV in France (1993-2004

                                                                                 Victims in the LSV

  Year                             Total                                                                            Severity            Accident
                LSV                                  Killed after 6                            Severe
                                 vehicles                                 Injured                                  (killed per       involving at least
              involved                                 days (1)                              injuries (1)         100 victims)
                                 involved                                                                                                one LSV
 1993            371            236 462                   28                 325                 102                 7.93                  366
 1994            361            229 247                   25                 307                  86                 7.53                  350
 1995            384            230 347                   19                 332                  77                 5.41                  366
 1996            368            216 578                   20                 289                  70                 6.47                  360
 1997            351            217 737                   39                 293                  76                 11.7                  350
 1998            378            216 551                   32                 307                  87                 9.44                  372
 1999            354            217 407                   29                 292                  68                 9.03                  348
 2000            335            211 550                   26                 275                  47                 8.64                  334
 2001            299            203 301                   23                 243                  61                 8.65                  298
 2002            272            182 027                   33                 225                  46                 12.8                  272
 2003            265            155 087                   24                 203                  38                 10.6                  265
 2004            203            147 308                    6                 159                  37                 3.64                  202
                                                                                 Victims in the LSV
                                                                                                Injured         Severity (killed        Accident
                LSV            Total vehicles       Killed after 30
  Year                                                                      Injured          hospitalized           per 100          involving at least
              involved           involved              days (1)                                                     victims)
                                                                                                   (1)                                   one LSV
 2005            328            145 478                   12                   232                84                 4.92                  202
 2006            355            137 657                   23                   289               158                 7.37                  349
                               Source: Observatoire national interministériel de la Sécurité Routière (ONISR)

  (1) Note: As of January 1, 2005, the “killed” is the individual who died within 30 days (instead of 6 until 2004) after the accident and the
  “injured hospitalized” is the victim hospitalized for more than 24 hours (instead of the severely injured hospitalized for more than six days)


Table 7 shows that the involvement of LSV in traffic accidents is low (0.26% of vehicles involved in 2006)
compared to all vehicles. The number of victims is also low, particularly in 2004. Instead, the severity of the
accidents, expressed in persons killed per 100 victims, is often very high, near or higher than ten, the highest
occurring in 2002 (12.8) and the lowest in 2004 (3.64).




                                                                                                                                              47
                                                      Figure 6
                  Evolution of LSVs involved in an accident and of the mortality rate (1993 to 2006)




Figure 6 shows that the number of injuries involving at least one LSV was between 350 and 370 each year until
1999 and it has been decreasing until 2004. In 2005, it rose suddenly and continued to rise in 2006 with no known
reason.

In the three following tables, we perform the analysis of the various causes of road accidents according to the
latest editions that we could obtain from the ONISR entitled “Les grands thèmes de la sécurité routière en
France – Autres véhicules – voiturettes, tracteurs agricoles, véhicules de loisir, véhicules sur rail" [General themes
of road safety in France – Other vehicles – LSV, agricultural tractors, recreational vehicles, rail-borne vehicle],
published every two years.

                                                         Table 8
                             Analysis of LSVs involved in traffic accidents (in 2004 and 2006)

                                                                        2004                       2006
 Criteria                   Parameters analyzed                        204 LSV                    355 LSV
                                                                       involved                   involved
 Age of vehicle             + de 4 ans                                  54.8%                      58.3%

                            No change in direction                     56.7%                       56.5%
 Main manœuvre              Turned left                                12.4%                       14.8%
 during the accident        Veered left or was crossing                10.8 %                       9.9%
                            the road
 Point de impact            Front                                      77.8 %                      67.9%
                            Back                                       13.4%                       11.7%
                            Side                                        8.2%                       15.7%
                            Normal conditions                          82.8%                       83.7%
 Weather conditions
                            Rain                                       12.8%                       12.4%


                                                                                                                  48
                                                                           2004                             2006
 Criteria                       Parameters analyzed                      204 LSV                           355 LSV
                                                                         involved                          involved
 Light                          Day                                       80.8%                             74.4%
                                Night                                     19.2%                             25.6%
 Place                          Not in an intersection                    70.9%                             72.7%
                                In intersection                           29.1 %                            27.3%

 Month of the year              The highest                             May and July               May and November
                                The lowest                                March                        February
 Networks                       Municipal roads                           44.3%                            48.5%
                                County roads                              44.3%                            50.1%
                                National roads                            10.3%
 Number of                      One                           32.0% (18.2% without pedestrians               N/A
 vehicles                                                                   and
                                                                   13.1% with pedestrians)
  involved in the accidents     2 vehicles
                                                                          62.6%
                                3 vehicles                                 5.4%



According to Table 8, most accidents involve a frontal collision. EQUAL also states that LSVs have the same
percentage of rear collisions as classic cars (an average of 12%). According to EQUAL, the low speed of
these vehicles is not a specific cause of accidents.

                                                         Table 9
                               Analysis of mortality by road environment (2004 and 2006)

  Killed in LSV                                2004                                              2006
                                    Urban            Open                      Km/h Urban         Open
                                                                Total                                              Total
                                 environment        country                    environment       country
 Users       Drivers                  2                4          6                  4             15                 19
             Passengers               0                0          0                  0              4                  4
 TOTAL                                2                  4        6                  4             19                 23
 Sex         Women                    0                  1        1                  1              6                  7
             Men                      2                  3        5                  3             13                 16
 Age         Under 18 years           0                  0        0                  0             0                   0
             18-24 years              0                  0        0                  0             0                   0
             25-64 years              1                  1        2                  3             8                  11
             65+                      1                  3        4                  1             9                  10
 Place       In intersection          1                  1        2                  0              3                  3
             Not in
                                      1                  3        4                  4             16                 20
             intersection
 Light       Day                      1                  4        5                  1             15                 16
             Night                    1                  0        1                  3             4                   7

The numbers are “too low” to enable an in-depth analysis however, this table shows some important points:

            •     The drivers are the victims in most cases, probably due to the fact that these LSV
                  generally have a low occupancy rate.
            •     Fatal accidents generally occur on country roads (municipal and county) where the
                  maximum speed is 90 km/h.


                                                                                                                           49
               •     The people killed were mostly men over 65 years old, that is, drivers “at risk”.
               •     Lack of visibility and intersections do seem to be risk factors in these cases.

In our opinion, if accidents are more frequent in the rural areas compared to urban environment, that might be due
to the difference in speed between the types of vehicles. LSVs have a maximum speed of 45 km/h, while the other
vehicles operate at approximately 90 km/h on country roads. For these reasons, we think that this type of vehicle,
considering its low speed, should operate in areas where the speed of the other vehicles is more or less similar or
that it should travel in a reserved lane.

                                                              Table 10
                                           Responsability of LSV drivers (in 2004 and 2006

                                                  2004                                          2006
        Involved in          Drivers not         Drivers                       Drivers not     Drivers
      bodily injuries        responsible       responsible
                                                                      %        responsible   responsible
                                                                                                            %
         LSV                      64                135            67.8            138            213        60.7



LSV drivers represented 0.20% of the number of drivers responsible in 2004 and 0.36% in 2006, however their
share of responsibility is 1.5 higher than average. That might be explained by the fact that many LSV drivers have
a “bad driver” profile, that is, they often do not know traffic regulations very well and they are an elderly clientele.

In our opinion, the fact that drivers do not need to take a driver’s licence test is not very safe. In 2006, the
European Union decided to create a new category of AM licence requiring a written examination for which
knowledge of driving rules is necessary. However, the road test is still not mandatory. We do not recommend this
approach for Quebec; we suggest that a driver’s licence category C should be required to drive quadricycles or
LSVs.

Average mileage of LSVs

According to a 1984 investigation of the Association générale des sociétés d’assurances contre les accidents
(AGSAA) that has not been updated, the average annual mileage is estimated at 3,500-5,000 km per year in rural
areas and to 5,000-10,000 km in urban areas, however, there are large differences in use. The average estimate
of 5,000 km that we use in the table below to calculate an average per kilometer traveled should therefore be used
with reservations.

We know that travelling more kilometers means acquiring more driving experience and reduced risks. For example,
a driver who travels 20,000 kilometers per year has an annual accident frequency multiplied by 1.5 not by two
when comparing him to a driver who travels 10,000 kilometers per year.60




60   http://www.securite-routiere.org/vehicules/dommages.htm

                                                                                                                    50
                                                      Table 11
                Number of people killed by number of vehicles and by million km travelled (2000 to 2006)

                               Number of people killed    Number of   People killed per   Number of km/yr Number people killed
                                                           vehicles      million                            per million vehicle-
                                                                         vehicles                                     km

       LSV                                  26            140000               186               5000             0.037
  2
  0    Mopeds                              431           1458000               296               2020              0.146
  0    Motorcycles                         886           1188000               746               4728              0.158
  0
       Passenger cars                     5006           27480000              182              13164              0.014
       LSV                                  23            140000               164               5000             0.033
  2
  0    Mopeds                              426           1421000               300               2020              0.148
  0    Motorcycles                        1011           1019000               992               4728              0.210
  1
       Passenger cars                     4998           28700000              174              13164              0.013
       LSV                                  33            140000               236               5000             0.047
  2
  0    Mopeds                              366           1387000               264               2020              0.131
  0    Motorcycles                         973           1054000               923               4728              0.195
  2
       Passenger cars                     4602           29160000              158              13164              0.012
       LSV                                  24            120000               200               5000             0.040
  2
  0    Mopeds                              372           1356000               274               2020              0.136
  0    Motorcycles                         813           1092000               745               4728              0.157
  3
       Passenger cars                     3509           29560000              119             13164               0.009
       LSV                                    6           120000                 50              5000             0.010
  2
  0    Mopeds                              321           1331000               241               2020              0.119
  0    Motorcycles                         814           1129000               721               4728              0.152
  4
       Passenger cars                     3186           29900000              107              13164              0.008
       LSV                                  16            140000               114               5000             0.023
  2
  0    Mopeds                              381           1304000               292               2020              0.145
  0    Motorcycles                         931           1178000               790               4728              0.167
  5
       Passenger cars                     4331           30100000              144              13164              0.011
       LSV                                  23            140000               164               5000             0.033
  2
  0    Mopeds                              317           1262000                251              2020              0.124
  0    Motorcycles
                                           769           1248000                616              4728              0.130
  6
       Passenger cars                     2626           30100000                87             13164              0.007


Source: ONISR 2000, 2001, 2002, 2003, 2004, 2005, 2006




                                                                                                                            51
                                  Figure 7
Number of people killed per million vehicles per type of vehicles (2000-2006)




                                 Figure 8
  Number of people killed per million km per type of vehicles (2000-2006)




                                                                                52
Figure 7 reproduces the French road safety data calculated in absolute values, that is the number of people killed
compared to the number of vehicles reported in million vehicles. Based on this data we established Figure 8, that
is deaths according to the number of km travelled in order to facilitate the comparison with Quebec data.

According to the last table and figures, we note that:

              •     LSVs have a low ratio of people killed: an average of 25 dead per year over the last six years for a
                    total of 140,000 vehicles in operation, that is, an average ratio of 0.017. The ratio increases to 0.037
                    people killed per million kilometers travelled if we take into consideration their annual average
                    mileage.

              •     LSVs cause four times less victims than the mopeds (who travel at the same speed on the same
                    type of roads).

              •     The number of fatal accidents involving cars and motorcycles decreased substantially in France due
                    to a speed control system (automatic fixed radars) that has been drastically enforced since 200461.
                    This measure had no effect on quadricycles since their speed is technically already limited to
                    45 km/h.

              •     In number of kilometres travelled, the passenger car provides better security than all the other types
                    of vehicles compared. This is normal given that the passenger car meets better safety levels to
                    protect the occupant.


                                                       Figure 9
                  Percentage of people killed by environment (urban/rural) by type of vehicle (2005




61   Antoine Fouchard, EQUAL, Febuary 2008

                                                                                                                        53
According to this chart that shows the percentages of fatal accidents in urban environments versus rural
environments, we note that:

                    •     Globally, the rural environment has a higher percentage of fatal accidents in relationship to a
                          much higher speed than in urban environments.

                    •     83% of the people killed in LSVs were recorded in rural environments compared to 17% in urban
                          environments. Passenger cars have exactly the same percentage.

                    •     We could therefore say that the ratio of people killed in LSVs per million kilometers in an urban
                          environment is four times lower than the global ratio.

                    •     Mopeds have exactly the same number of people killed in urban environments and in rural
                          environments


7.3.2 – The US experience

Our research showed that there are no a priori road accident data for LSVs in the United States. The only existing
data concern golf carts.

The FARS (Fatality Analysis Reporting System) data bank, created by the National Highway Traffic Safety
Administration, records all automobile collisions by serial number (VIN code), not by make and vehicle
model. In order to analyze and determine the number of fatal collisions involving low speed vehicles, a search of
the first three characters of the serial number that identify the manufacturer is necessary. This would retrace the
type of vehicle and identify:62

                    •     the type of collision in which these vehicles are involved
                    •     the environment and the roads on which the collision occurred
                    •     the mortality percentage versus market penetration


7.3.3 – Comparison between the French and the North-American situation

The French data, although demonstrating the safety of LSV, should be put in perspective. The environment in
which LSVs are used, including urban conditions and driving habits, differs from one continent to another.

The comparative table below shows the environmental and cultural differences between Europe, more specifically
France, and North America. It is possible that the North American environment, considering certain factors
described below, is safer for the LSV than the European environment.




62   Michel Gou, Manager of the Road Safety Team, Polytechnique, February 2008

                                                                                                                            54
                                                      Table 12
                                    Comparison between France and the United States


                             United States                         France/Europe
                                                                                                          Safety aspects
                               LSV – NEV                          Light quadricycle
Car driver’s       Mandatory                              Not mandatory. Moped licence           Obtaining a driver’s           licence
licence required                                          acceptable. Additional training        promotes better driving.
                                                          provided    by     manufacturers.
                                                          Written exam required since 2007.
Manufacturing      Very lenient                           19 standards                           European products have more
standards                                                 Collision tests performed by           stringent standards.
                                                          manufacturers.
Engine             40 km/h                                45 km/h                                It is technically very difficult for an
limitation                                                The majority of quadricycles are       American owner of an LSV to
                                                          equipped with gas or diesel            modify the engine controls to
                                                          engines. It iet relatively easy for    increase the speed of the vehicle.
                                                          the owner to modify his vehicle to     In most cases, the power of the
                                                          reach 70 km/h (sanctioned              electrical engine would not allow it
                                                          recently by a European law).           to reach speeds over 50 km/h. In
                                                                                                 other cases, the electronic control
                                                                                                 system makes tampering very
                                                                                                 complicated.
Control of road    May travel on roads with a             May travel on all roads, including     The LSV integrates best in the
access             maximum speed limit of 35 mph          county roads, with a maximum           traffic flow in the United States
                                                          speed limit of 90 mph, excluding       since the maximum speed limit of
                                                          highways.                              the vehicle is the same as the
                                                                                                 authorized limit. In France,
                                                                                                 according to Table 9, 67% of fatal
                                                                                                 accidents in 2004 and 82% in 2006
                                                                                                 took place on the 90 km/h roads.
Driving habits     North American drivers generally       Culturally, the French have a          The electric engine promotes a
                   have more conservative driving         “latin” temperament and tend to        calm attitude towards driving. It is
                   habits: lower speed limits and         have a competitive driving style;      more difficult to be aggressive
                   automatic gearbox                      they prefer a standard, faster         behind the wheel in an LSV
                                                          gearbox.                               whose speed is limited to 40
                                                                                                 km/h.
Mobility           In North America, cities are newer,    In Europe, many cities were built in   The road networks are different.
environment        the oldest being only several          the Middle Ages and the downtown       Distances between two cities are
                   hundred years old. Streets are         areas have narrow streets.             shorter. American roads are wider.
                   wider and traffic is denser.
Users and          Several million golf lovers, a sport   Drivers at risk: the elderly, people   The migration of the LSV from an
potential          popular with the elderly as well as    with a suspended licence for           elderly client base or limited to
clients            the younger generation, have           drinking and driving, drivers not      one activity (golf), to a younger
                   already driven golf carts. LSV         familiar with traffic regulations.     and more urban client base leads
                   dealers target an “in” client base.                                           to changes in the driving habits of
                                                                                                 all the population cohorts.
Power              The most popular LSVs are              The quadricycle is diesel propelled    The LSV is the only 100%
efficiency         electrical                             but it only uses 3.5 l/100 km.         electrical North American vehicle
                                                                                                 and is sold at an affordable price.




                                                                                                                                    55
Ideally, the LSV could become the urban vehicle par excellence and inspire municipal
environments to modify their streets in order to prevent speeds higher than the speed limit in cities,
so that all users may travel safely and better share public roads while reducing accidents caused
by excessive speeds.

There were no road accident data for LSVs in the United States processed, however, during our
research and meetings with the US authorities (NHTSA, IIHS), no major accident was mentioned.
In France, drivers without a licence are overrepresented among quadricycle drivers, however, the
data mentions a low accident ratio in general and moreover, accidents that take place mainly on
the roads with a 90 km/h speed limit.

There are significant differences between the United States and France regarding the interest in
acquiring an LSV, travel habits, types of customers and the road environment. Given these cultural
differences, we could say that the LSV is used more safely in the United States for two main
reasons:

     o     Drivers must have a vehicle driver’s licence;

     o     The roads used by LSVs have a 35 mph (56 km/h) speed limit.




                                                                                                  56
8 – COMMENTS OF THE SPECIALISTS

During the development of this report we contacted over 200 government agencies, associations, municipalities
and individuals throughout the world (Quebec, British Columbia, Canada, the United States, France, Germany,
England, Belgium, Italy, Japan, Australia, India).

The following comments were excerpted from the written replies of the vast majority of respondents. For certain
countries, such as Japan, the collaboration was minimal despite our numerous requests. We have chosen the
most relevant comments.

The opinions expressed here are those of the individuals interviewed during the investigation and they may not
reflect those of the ITAQ. The contact information of the individuals interviewed is included in Appendix 12.


1 - CALIFORNIA AIR RESOURCE BOARD (US)
Mark Wiliams, Responsible for the 2008 Regulation of Zero Emissions Vehicles (ZEV)

               •   LSV manufacturers negotiate with the state of California to allow the operation of LSVs on all
                   roads with a speed limit of 35 mph;
               •   The California Air Resource Board will propose the increase of purchase credits for LSVs. In
                   March 2008, these credits should rise from 0.15 to 0.30 per vehicle;
               •   The CARB does not know the LSV accident statistics in California. The only existing data is
                   produced by GEM.


2 – NATIONAL HIGHWAY TRAFFIC SAFETY ASSOCIATION (US)
Stu Geigel, Safety Compliance Engineer

               •   There is no project to amend US regulations regarding LSV;
               •   LSV do not seem any more or less safe than the other vehicles on the road;
               •   The concept of Medium Speed Vehicle is not being considered by the NHTSA. It is possible
                   that the regulations introducing the concept of MSV will try to limit the access to public roads of
                   LSVs insufficiently equipped from a safety perspective;
               •   The number of LSVs in operation on roads is very limited and therefore it is highly possible that
                   they do not show up in road accident databases.


3 – ALLIANZ ZENTRUM FÜR TECHNIK (AZT) GERMANY
Heike Stretz

               •   The AZT considers that quadricycles are not safe enough to operate on public roads;
               •   A vehicle that only weighs 350 kg cannot have sufficient safety equipment and cannot meet the
                   same standards as passenger cars;
               •   The AZT performed a study for the Association of German Insurers, including collision tests;
               •   The results of these tests were disastrous in the opinion of the AZT: the damages caused would
                   entail expenses of 5,600 to 6,200 €, that is the equivalent of 50% of the price

                                                                                                                   57
                   of the vehicle. By comparison, the impact of a collision at the same speed on an ordinary
                   vehicle would be 1,000-1,500 €;
              •    Quadricycles are especially vulnerable to frontal impact;
              •    Quadricycles look like real cars and may confuse the drivers and passengers as well as the
                   others users of the road;
              •    The quadricycle should meet the same safety standards as the other vehicles;
              •    European regulations should be re-evaluated.

4 - TRANSPORT CANADA
Matthew Coons, Senior Regulatory Development Engineer
              •    New regulations amending the Motor Vehicle Safety Regulations (Low-speed vehicles) were on
                   December 22, 2007 in the Canada Gazette Part I
              •    The amendments concern the inclusion of mini trucks in the definition of LSV.
              •    TC refused to take an official position on the LSV in our study.

5- INSURANCE INSTITUTE FOR HIGHWAY SAFETY (US)
Russ Rader
              •    The IIHS is the US agency that tests the safety of vehicles;
              •    The IIHS did not test the LSV but it has some reservations regarding the use of these vehicles
                   on public roads;
              •    The IIHS considers the LSVs to be glorified electric golf carts;
              •    The IIHS is against the use of LSV on public roads;
              •    Brian O’Neill, the President of the IIHS, said that “NEVs are a safety problem waiting to
                   happen”;
              •    The IIHS stated that there are no accident data regarding LSV in the United States. The only
                   existing data concern golf carts.

6 - MONTANA, STATE HIGHWAY TRAFFIC SAFETY BUREAU
Jack Williams, Operations Research Analyst
              •    The regulations for the MSV were prepared by one representative, and the state had no specific
                   needs or reasons to implement this new regulation;
              •    The state of Montana does not have road accident data on the LSV;
              •    Impact tests will have to be performed to determine to which type of vehicle the LSV
                   corresponds.

7 – COLORADO, 21 WHEELS, LLC
Graham Hil, President
              •    The regulations of the states of Colorado, Florida, California and Arizona are based on the pre-
                   existing ones concerning golf carts;
              •    Mr. Hill was involved in the implementation of regulations for the LSV in several US states;



                                                                                                                  58
               •     According to him, the future of regulation is through the MSV.

8 - NEW YORK, STATE OF NEW YORK DEPARTMENT OF MOTOR VEHICLES
Mark Engel, Vehicle Safety Technical Analyst
               •     The state of New York considers LSVs to be limited use automobiles, according to the Vehicle
                     and Traffic Law section 121;
               •     The LSV must also meet the same safety standards as a passenger car, with the exception of
                     certain pieces of equipment such as the bumper;
               •     The dealers must give the users a disclosure warning the owner about the dangers of the LSV,
                     including a reminder that:
                      o      The vehicle has a maximum speed of more than 20 mph but less than 25 mph;
                      o      The vehicle should not be used on public roads where the speed limit exceeds 35 mph;
                      o      It might be a hazard to operate the vehicle on roads where it impedes traffic;
                      o      When driving such a vehicle, the driver risks a fine for impeding traffic;
                      o      May not be equipped with safety components such as bumpers, a padded instrument
                             panel, rearview mirrors and a tamper proof odometer;
               •     The owner or the user must sign the “disclosure of information” document;
               •     No road accident data was supplied.

9 – UNITED KINGDOM, TRANSPORT TECHNOLOGY AND STANDARDS 3
Customer service, Department for Transport
               •     In the United Kingdom, light quadricycles are considered scooters (mopeds);
               •     Heavy quadricycles are considered motorcycles;
               •     No road accident data was supplied.

10 - INSURANCE CORPORATION OF BRITISH COLUMBIA (ICBC)
Christine Barrette, in charge of LSV file
               •     Approximately 20 Dynasty vehicles are registered in British Columbia, including several
                     operating in a closed circuit;
               •     None of these vehicles has been involved in a traffic accident;
               •     Given the small number of LSVs in operation, ICBC cannot draw a conclusion regarding the
                     safety of these vehicles;
               •     For the moment, the province maintains the statu quo regarding regulations and no changes
                     are planned.




                                                                                                                 59
11 – THE CITY OF LINCOLN, CALIFORNIA
Leo Rubio, Project Engineer, NEV Transportation Plan
              •    The urban transportation plan was developed in order to facilitate the movement of people from
                   the gated community in the vicinity to the city;
              •    Between 600 and 800 LSV are in operation in the city of Lincoln that has 40,000 residents;
              •    The city estimates it will have almost 5,000 LSV in the next 20 years following the success of its
                   integration plan;
              •    No accident was reported;
              •    The mix of traffic with the other vehicles goes very well;
              •    On the roads with a speed limit of over 35 mph (or those where the speed is limited to 35 mph
                   but the real circulation is often faster) that connect with strategic points (shopping malls,
                   cinemas, etc.), reserved for NEV (and bicycles) were implemented.

12 – ASSOCIATION DES FABRICANTS EUROPÉENS DE QUADRICYCLES (AFQUAD OR EQUAL)
Antoine Fouchard, President
              •    Quadricycles are present in all regions, with a higher concentration in agricultural and mining
                   areas;
              •    Approximately 24% are in urban environments and 76% in rural environments;
              •    A relatively high ratio in Paris among “hip” young people who replaced the moped with the
                   quadricycle;
              •    In France, the quadricycle meets two important needs: the mobility of rural residents and the
                   mobility of individuals who cannot get a driver’s licence for intellectual reasons or who have lost
                   it;
              •    The market is connected to the fact that only a moped licence is required (much easier to obtain
                   the car licence);
              •    The percentage of people who do not have a driver’s licence is high in France;
              •    A new European law recently forbade tampering with the engines and increasing the maximum
                   speed;
              •    Considers that thinking that quadricycles are dangerous is a myth. Very few rear impact
                   accidents occurred;
              •    It is a vehicle easy to overtake on two way lanes;
              •    The accident ratio recorded is very low.




                                                                                                                     60
9 – Impact of the cold on the LSV

Extreme weather conditions such as winter temperatures in Quebec have an impact on two levels:

               •    The propulsion system;
               •    The onboard power system

9.1 – THE PROPULSION SYSTEM
The electrical motor is just as reliable if not more reliable than an internal combustion engine for starting in deep
cold. Unlike the internal combustion engine, it starts in any temperature and any weather conditions.

The heating system is also more efficient in an electrical vehicle. The batteries provide heat directly when starting,
while in a car with an internal combustion engine, the latter must warm up for a few minutes.

On the other hand, the heating system of an electrical vehicle uses a lot of the energy accumulated in the batteries,
substantially reducing its range. In extreme cold conditions, the heating may reduce the efficiency of batteries by
25% (e.g.: a typical heating element at 1000W; an LSV travelling at 40 km/h uses approximately 4000 W). In
practice, the heating system of an electrical vehicle operates more as a deicing and defogging system.

There is more stress on the electric engine in snow or slush. The resistance to moving is higher on a moving
surface such as snow than on asphalt, and therefore the need for power from the propulsion system will increase
and that may also reduce the autonomy of the batteries by 10 to 20%.

Finally, the oil of the differential and the various other lubricants of the power transmission system will tend to
thicken, thus increasing the demand for power, which might contribute to reducing the battery life by an additional
10%.

9.2 – THE ENERGY STORAGE SYSTEM (BATTERIES)
It is a known fact that batteries are sensitive to the cold: the efficiency of lead batteries, the most widespread in
LSVs, may be reduced by approximately 50% in cold weather, reducing the autonomy of the vehicle by the same
percentage. Moreover, if they are left uncharged in severe cold weather or for a long time, they may be irreversibly
damaged.

Since it is difficult to mitigate the increase in power described above (which in the worst case may reach 50-55%),
it entails that for winter conditions we must find means to minimize the loss of performance in cold weather of the
batteries of the vehicle.

Of course, there are more performing technologies for electrochemical batteries than for traditional, lead batteries.
The lithium technology enables a more efficient energy storage while being more resistant to the cold. On the other
hand, their price is very high. For example, in order to double the range of a ypical LSV, a lithium-ion battery
system would cost approximately $12,000 compared to $800, the current price of a lead battery system.




                                                                                                                  61
Another solution may be considered: isolating lead batteries by covering them with a protective hood. Made of a
heating material with isolating properties, the hood may reduce by much the negative impact of the cold and
conserve a large part of their power efficiency. When the vehicle is stationary, it may be connected to the standard
power network (110 V), to recharge the batteries and to power the heating hood. When it is operating, the batteries
will maintain their temperature due to their internal resistance and to the isolating properties of the hood,
particularly during short trips, which is the first purpose of a LSV.

Tests performed on the tank of a biodiesel-fuelled truck show that this technique is quite possible63. Pure biodiesel
(B100) is a fuel that solidifies when the surrounding temperature reaches -5oC. An isolating hood was installed on a
service truck using biodiesel in the Yellowstone National Park, in the United States. This technology maintains the
fuel at a temperature above -5oC so that it may be used in all weather conditions.

These technological developments show that extreme cold temperatures are not insurmountable obstacles to the
use of electrically propelled LSV in Quebec. Technological modifications are possible and examples prove it.
These technologies are not yet available on the market in North America and additional tests in Quebec should be
considered




63   www.deq.state.mt.us/Energy/bioenergy/TruckInTheParkBiodieselDemo.asp

                                                                                                                 62
10 – CONCLUSIONS

Our research revealed that the low-speed vehicle is a niche market, complementing the existing mobility offer and
that it has a usefulness specific of each country where it is authorized. There is an LSV industry with an increasing
number of manufacturers, particularly in North America and in Europe.

Given that Quebec has an action plan regarding climate change, the LSV represents a solution that can reduce the
negative impact of transportation on the environment and the quality of life. The issue of its integration on the
roads in Quebec deserves specific attention.

During our research and interviews with the government authorities in the concerned countries, no exceptional
accidents or worrisome statistics regarding the LSV were brought to our attention. In most cases, it does not raise
major concerns in the countries and states that authorized its use on public roads.

In the United States and in Europe, there are adequate regulations governing the LSV – technical standards as
well as operation rules. However, we noted that European manufacturing standards are much more stringent than
North American standards, which are minimal and insufficient. On the other hand, North American operation rules
are more stringent than those in Europe.

Each year, some LSV manufacturers incorporate an increasing number of safety elements specific of conventional
vehicles. These LSV resembling minicars are geared to road use in urban areas. This type of product represents a
major technical evolution compared to golf cart-like LSV.

LSV follow several implementation models, depending on cultures and markets. If the authorization of LSV on
Quebec roads is sought, it would be advisable to identify a model of integration that can be reproduced and
transferred to conditions in Quebec.




                                                                                                                 63
11 – RECOMMENDATIONS

 1. Pursue an “LSV mission” in North American cities where the LSV were implemented successfully. The
    delegation undertaking this mission would comprise representatives involved in the LSV issue in Quebec,
    including various ministries (Public Safety, Transport, Economic Development, Environment), interested
    municipalities and organizations, independent and industrial experts.

 2. Develop an LSV integration plan with the main objective to define traffic rules on Quebec roads.

 3. Validate and adjust the integration plan through a large scale LSV project implemented at the provincial level.
    This project should involve a representative number of municipalities and vehicles and be managed by a
    single organization or ministry.

 4. Undertake a theoretical scientific study with a road safety specialist to evaluate the impact of the increase of
    the maximum speed of LSV to 50 km/h. Moreover, this aspect could be validated experimentally through the
    pilot project mentioned under item 3.

 5. Evaluate the relevance of increasing the LSV safety standards, particularly regarding the brake system, the
    deicing-defogging system, the seat belt anchorage and the protection of the occupant. These new standards
    could be based on the European directive 2002/24/EC applicable to light quadricycles.

 6. Validate technologies enabling the use of LSV in winter conditions specific of our climate.

 7. Develop a position regarding the issue of possible provincial regulations concerning the circulation of LSV on
    Quebec roads.




                                                                                                                64
11.1 – SCENARIOS CONSIDERED IN QUEBEC

Based on the NEV transportation plan of Lincoln, a                           Legend
medium size city more similar to the urban development         Green         Authorized
of Quebec than Europe, we developed three levels of                          Authorized with urban planning
                                                              Orange
traffic for the LSV that could be proposed for the urban                     (traffic calming)
environment and implemented within a project pilot (see        Route         Forbidden
Recommendation 3).


                                        ROUTE TYPE I : Tourist – Very slow speed
 Environment                Limited
 Mobility                   Pedestrians, calèches, bicycles, roller skates, cars
 Examples                   Toursit neighborhoods: Old Québec, Old Montréal Tourist
                            centre

                                           ROUTE TYPE II : 30-40-50 km/h
 Environment                Urban – Residential environment – Commercial downtown Compliance with speed
                            limit
                            Roads adapted to low speed, radar control
 Mobility                   Pedestrians, bicycles, cars
                            Smooth traffic
 Examples                   Montreal, Plateau Mont Royal
                            Cities where the real speed is under 50 km/h

                                              ROUTE TYPE III : 50 km/h
 Environment                Urban: differents lanes: primary, secondary, one way, two way, urban thoroughfare,
                            transit roads
 Mobility                   Fast
 Reality                    Speed limits are less complied with on secondary roads and main thoroughfares

 Solutions                  Make the network safe through speed reduction measures:
                              •     Radar control
                              •     Traffic calming measures
                              •     Speed signs
                            Ban fast roads if secondary roads may be used (same idea as the bicycle)



                                                   ROUTE TYPE IV
                         Over 50 km/h                                          Over 50 km/h
To facilite connecting with priority locations:
   •      Build a lane reserved for LSVs                                    LSVs NOT ALLOWED
               WORDWIDE SITUATION OF
                LOW-SPEED VEHICLES



    To obtain more information, please          ITAQ
                    communicate with            College of Saint-Jérôme
                Hugo Marsolais, Eng.            475, rue Fournier
                 Director of operations         Saint-Jérôme, Québec, J7Z 4V2
                                                Canada
                                                Tel : 1-450-436-1580 ext.430
                                                Web : www.itaq
                                                E-mail : hmarsola@cstj.qc.ca




Mission of ITAQ
To offer businesses, particularly SME, product development, applied research,
technology transfer, strategic and technological monitoring services as well as
training in the field of sustainable transportation.

Fields of activity
•   Electric and hybrid traction
•   Biofuels
•   Energy efficiency technologies




    Available in pdf version at the following address : http://www.itaq.qc.ca/LSV

				
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