Quotas for electric cars in company fleets imposed by the LOM law
The French government has introduced a number of legislative measures to encourage soft mobility within companies. The LOM law (Loi d'Orientation des Mobilités) replaced the LOTI law (Loi d'Orientation des Transports Intérieurs) to take better account of environmental issues that are now impossible to avoid.
What does the law say?
Published in the Journal Officiel on December 26, 2019, the Loi d'Orientation des Mobilités (LOM) aims to achieve carbon neutrality in transport by 2050. Its deployment is based on a series of progressive measures that concern not only local authorities and individuals, but also businesses. The latter are at the heart of the scheme, given the role they play in business mobility (transport of goods, home/office journeys, miscellaneous travel). According to the report by Think Thank, led by the consulting firm Bearing Pointcommuting alone accounts for 12% of all transport-related greenhouse gas emissions emissions linked to transport.
While limiting travel and using telecommuting can help reduce a company'scarbon footprint, it is also essential to act at source by encouraging the use of low-emission vehicles.
In this context, the LOM law includes in its article 77 rules concerning company fleets.
Since 2022, a quota of "clean vehicles" has been mandatory when renewing business fleets. However, the term "clean" still needs to be clarified. According to decree 2017-24these are low-emission vehicles, emitting less than 60 g/km of CO2.
Only hydrogen-powered, electric and plug-in hybrid vehicles fall into this category.
Which companies and fleets are concerned?
The LOM Act applies to companies with a workforce of more than 50 employees and a fleet of 100 vehicles (with a gross vehicle weight rating of 3.5 tonnes or less) or more.
From January 1, 2023, light commercial vehicles (LCVs) with a gross vehicle weight of 2.6 tonnes or more will also be affected. Quotas identical to those for company vehicles have been set for the renewal of these vehicles in company fleets.
Finally, motorcycles and scooters with a power rating of 1 kW or more must also be electrified, in the same proportions and according to the same timetable.
How do you calculate the size of your fleet?
To avoid any ambiguity, you should calculate the 100-vehicle threshold taking into account the entire fleet managed on French territory, including your company's subsidiaries and branches.
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What is the quota for electric vehicles?
The measures of the LOM law were designed to enable companies to gradually finance the electrification of their vehicle fleets. To this end, deadlines have been set according to a timetable that concerns vehicle renewals only.
The quota is as follows:
| Deadlines | Quotas for clean vehicles (100% electric, hydrogen or plug-in hybrids) |
|---|---|
|
Since January 1, 2022 |
10% renewal |
|
Since January 1, 2024 |
20% renewal |
|
Since January 1, 2027 |
40% renewal (previously 35%) |
|
Since January 1, 2030 |
70% renewal (previously 50%) |
The obligation to comply with the set quotas is accompanied by other measures, as the companies concerned will have to make public the changes impacted when renewing their fleets. In fact, according to article 79 of the LOM (article L224-12 of the French Environment Code), companies are subject to an annual reporting obligation. They must transmit a list of renewed vehicles, which will be made available on the platform data.gouv.fr.
What are the penalties for non-compliance?
While the LOM Act does not provide for any criminal or financial penalties for the time being, the greening of fleets is a priority. greening of fleets is one of the key areas for development in the energy transition. No one can say with certainty that companies that do not play the game will not be penalized in the long term.
Between obligations and opportunities
The regulatory quotas for electric vehicles in company fleets imposed under the LOM law are minimum values. There's nothing to stop you from making your fleet even greener ahead of schedule. In fact, this initiative can generate a number of advantages for companies planning to anticipate the conversion to electric vehicles :
- Better quantify the budget allocated to the energy transition: while the greening of your fleet of company and utility vehicles represents a significant cost, it is also synonymous with savings. It's important to weigh up the investment (the purchase price of electric vehicles) against the reduction in running costs. Electric vehicle fuel and maintenance costs are significantly lower than those for internal combustion vehicles. This estimate will enable you to define the TCO (Total Cost of Ownership) of your vehicle fleet, enabling you to define a budget that's as close to reality as possible.
- Develop your CSR policy (Corporate Social Responsibility): taking the initiative to electrify your fleet ahead of regulatory constraints helps to lend credibility to your company's environmental approach, and to improve the image conveyed to your partners, employees and customers.
- Take advantage of tax advantages The greening of vehicle fleets is also supported by a number of tax and government schemes. You can take advantage of the ecological bonus, the conversion bonus, exemptions from certain taxes (including the company vehicle tax for the acquisition of a 100% electric vehicle), tax deductions on depreciation, as well as grants, subsidies and benefits in kind for your employees...
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Promoting the use of recharging stations in the workplace
The electrification of corporate fleets goes hand in hand with the deployment of charging infrastructures.
In addition to the greening of fleets, the LOM law has specified the obligations for equipment and pre-equipment in non-residential buildings. This includes business premises.
Pre-equipment
The obligation to pre-equip company parking lots has existed since 2012 for new or renovated buildings, as defined by the Construction and Housing Code (articles R. 111-14-2 to R. 111-14-8). In 2015, it was extended to existing buildings, under certain conditions. The aim of pre-equipment is to facilitate the installation of charging infrastructures for electric vehicles. In concrete terms, the charging points are not installed directly, but are adapted so that they can be installed without additional work. This involves not only the supply of electrical energy, but also the adaptation of the existing electrical network to deliver the power required for the future deployment of charging points.
The decree no. 2016-968 of July 13, 2016 extended the pre-equipment obligation to all new buildings (for which the building permit application was submitted on or after January 1, 2017).
The technical specifications of the pre-equipment are as follows:
- Installation of conduits for the passage of electrical cables: cable passages serving parking spaces must be dimensioned with a minimum cross-section of 100 mm.
- Charging point power supply: future charging points must be connected to the general low-voltage switchboard or to a public electricity network located on the building's right-of-way.
- Power reserve: for new buildings, the LOM law requires power reserve. In other words, the existing electrical installation must be adapted if necessary to supply future load points. The minimum power reserve is 22 kW.
Regardless of the connection configuration chosen, the electrical system must be able to supply at least 20% of all parking spaces.
L'article 64 of the LOM law reinforces and specifies the equipment obligations of companies whose premises are located in new or renovated (major renovation) tertiary buildings, and whose building permit application was submitted after March 11, 2021.
This applies to parking lots or parking areas with more than 10 spaces. These must include at least one space accessible to PRMs (persons with reduced mobility). If the parking lot has more than 200 spaces at least two spaces must be equipped with charging points, including one accessible to PRMs.
Good to know: from January 1, 2025, these obligations will also apply to also apply to company parking lots in existing buildings with more than with more than 20 parking spaces. These parking lots will have to include one recharging point for every 20 spaces, including at least one accessible to PRMs.
While the installation of charging stations may at first sight seem like a constraint, it also offers opportunities for companies with a fleet of electric vehicles. Your employees will be able to recharge their company cars at work, so they can get up and running more quickly, and avoid wasting time looking for a public charging station.
How do you go about greening your electric fleet?
Whether or not you are concerned by the obligations imposed by the legislator, thinking ahead about the electrification of your fleet can only be beneficial. By taking the necessary steps now, you can turn this project into a competitive advantage for your company. However, you need to managing your fleet taking into account the technical and financial constraints of vehicle renewal, while at the same time raising awareness and involving your employees, can prove to be a challenge.
If you don't have an in-house fleet manager, you can call on the support of an expert who can advise you and draw up an action plan to suit your schedule and budget. This service is also ideal for optimizing your car policy and save precious time by concentrating solely on your core business.
Beev has developed a turnkey service to help you successfully convert your vehicle fleet. From the preliminary audit to the choice of vehicles and equipment, right through to financing, grants and subsidies, you can count on our team.
- Compliance with regulatory requirements: no risk of getting it wrong. Our experts keep a close eye on legislative developments, both in terms of quotas and tax rules.
- Rationalization of investments: we find the solutions best suited to your needs, at the best price.
- Partner network: we have forged partnerships with industry professionals and approved, IRVE-certified installers.
- Flexibility: with Beev, you can choose from a wide range of complementary solutions. Rental or purchase, installation of terminals on site or at your employees' premises - all you have to do is let us guide you!
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