Re-Inventing the Garbage Truck

©Unsplash | pixabay ©Unsplash | pixabay Re-Inventing the Garbage Truck Report by Matt de la Houssaye

One major opportunity in urban sustainability is replacing dirty assets with cleaner, more sustainable infrastructure. The development of electric garbage trucks is an opportunity to move away from conventional diesel-fuel-burning garbage trucks and their damaging health and environmental impacts. This emerging technology for refuse trucks comes at a much higher initial cost, although the technology is developing and improving and that cost will inevitably come down. Currently electric refuse trucks deliver lower fuel operating costs, lower use-phase particulate pollution and lower noise levels. Like solar energy, the system installation comes at a higher cost initially, but brings long- term savings over the lifetime of the project. This report provides an initial outlook for the refuse hauling industry to undertake a similar transformation, with trucks being a key source of impact.

Graphic Design: Ana Luísa Lages December 2015 | www.globalgreen.org 3 ©Carlovenson | pixabay Diesel garbage trucks emit particulate matter trucks pick up the and bring it to . through their tailpipes. In New York City, the As a result, areas with transfer stations and combustion in these trucks produces over landfills bear the burden of having the most diesel 39,000 pounds of particulate matter per refuse trucks on their streets. According to the EPA, year. When this particulate matter reaches waste transfer stations are disproportionately 13 micrograms per cubic meter in the air, concentrated in low-income communities and noticeable respiratory and circulatory problems communities of color2. For example, in low- can occur. NYC exceeded 13 micrograms per income neighborhoods in Brooklyn, including cubic meter of air 31 times in 2011. In NYC and Williamsburg and Green Point, half of the 362 other cities nationally, the impacts of refuse trucks that pass per hour carry waste, contributing truck traffic are disproportionally burdensome to particulate counts 355% higher on weekdays on low and moderate-income communities. versus Sundays, when waste transfer stations According to the US Environmental Protection are closed3. Agency, the associated health impacts of diesel trucks include increases in asthma occurrences Community groups and concerned citizens and premature deaths from pollutants1. from across the nation have approached the National Environmental Justice Advisory In cities, traffic from refuse trucks is often Council voicing their concerns over the negative consolidated at transfer stations where waste impact of landfills and transfer stations. If this is temporarily held, and therefore where more public opposition is influential enough, it could threaten the business’s license to operate.

Carbon Monoxide (CO) Headache, dizziness, and nausea.

Particulates Eye/respiratory irritation (and climate change).

Nitrogen Oxide (NO) Lungs irritation and influenza.

1U.S. Environmental Protection Agency (2014). Near Roadway Air Pollution and Health. Transportation and Air Quality. Retrieved from www.epa.gov/otaq/documents/ nearroadway/420f14044.pdf 2 U.S. Environmental Protection Agency (2000). A Regulatory Strategy for Siting and Operating Waste Transfer Stations. A Federal Advisory Committee to the U.S. Environmental Protection Agency. Retrieved from www.epa.gov/compliance/ej/resources/publications/nejac/waste-trans-reg-strtgy.pdf 3 O.U.T.R.A.G.E (2010). Williamsburg/Greenpoint OUTRAGE Truck Traffic and Air Quality Project. Organizations United for Trash Reduction and Garbage Equity. Retrieved from http://outragenbk.org/wp-content/uploads/pdf/OUTRAGE_Truck_Traffic_and_Air_Quality_Full_Report.pdf 5 ©Unsplash | pixabay Two policy responses to alleviate the negative impacts of refuse trucks have been:

1. Restricting or limiting refuse trucks in urban 2. Phasing in performance metrics over time to areas meet the expected rate of potential adoption of the technology • NYC proposed two environmental laws, one limiting refuse traffic at select transfer • In California, solid vehicles stations by 25%, and Intro 495, which had been required to reduce smoke (measured reduces the solid waste capacity permitted at in opacity levels) by 10% in 2011 for diesel four overburdened transfer stations located trucks with specified engines using verified throughout Brooklyn, Queens, and the technology. The California Air Resources Bronx. These four transfer stations together Board has set standards for diesel-fueled constitute 80% of NYC’s total permitted buses and trucks through particulate matter solid waste capacity, with the burden of filter requirements, switching away from associated health impacts falling on local older, high-polluting trucks. communities. This capacity reduction is to occur over two phases and any and all • In the California fiscal year 2014-2015, growth of larger transfer stations will be $9 million has been allocated for Light- capped citywide4. Duty Pilot Projects, $25 million for Heavy-Duty Pilot Projects, and up to • The EPA and the Department of $50 million for Advanced Technology Transportation’s National Highway Traffic Freight Demonstration Projects1. This Safety Administration (NHTSA) launched kind of demonstration funding will help to the Heavy Duty National Program to reduce speed up the transition to a low-emission greenhouse gas emissions and improve fuel transportation future. efficiency of heavy-duty vehicles including refuse trucks.

4 The New York City Council (2015). Legislation Text Int. No. 495. Reduced Permitted Capacity at Solid Waste Transfer Stations. Retrieved from http://legistar.council.nyc. gov/ViewReport.ashx?M=R&N=Text&GID=61&ID=1840019&GUID=5574F9B1-FFA9-4FDE-8D49-09B061F5591D&Title=Legislation+Text 7 ©WikimediaImages | pixabay The Green growth has been encouraged in The Netherlands in part through the E-mobility program, a low emission initiative, with the goal of joining the cadre of electric-car-friendly countries by launching 200,000 plug-in electric cars on its road by 2020. In order to get there, a Dutch car company called Spijkstaal is in charge of manufacturing the first 100% electric garbage truck in the Netherlands, following the low emission transport initiative5.

Chicago The first city in the US to create the same zero- carbon system as the Netherlands and use an electric refuse truck is Chicago. In 2012, Motiv Power Systems – one of the two electric refuse truck manufacturers along with Wrightspeed - was contracted by the City of Chicago to design the first fleet of electric garbage trucks.

To use the City of Chicago project as an example, the average initial cost of a Motiv electric garbage truck is $500,0006.

Netherland’s Spijkstaal manufactures relatively small electric refuse trucks with 3.6 tons of payload compared to the trucks by Motiv Power Systems with 9 tons. One major difference is the electric the type of battery pack. While Dutch’s electric refuse truck uses a Lithium- ion battery pack of 60kWh of energy capacity, Motiv’s electric refuse truck uses a Sodium- Nickel Chloride? battery pack of 200 kWh, creating a great range of difference in terms of price, and mile-range driven7.

5 Edelstein, S. (2013). The Netherlands: Well-suited to electric ear, and eager to have more. Green Car Reports. Retrieved from www.greencarreports.com/ news/1095599_the-netherlands-well-suited-to-electric-cars-and-eager-to- have-more 6 B. Tom (2013). Electrifying the Windy City. Trucking information. Retrieved from www.truckinginfo.com/article/story/2013/03/electrifying-the-windy-city.aspx 7 Motiv Power Systems (2014). America’s first all-electric refuse truck. City of Chicago. Retrieved from https://motivps.com/portfolio/americas-first-all- electric-refuse-truck/ 9 ©Unsplash | pixabay When it comes to trucks, a hybrid refers to a 3. According to a Bloomberg interview with vehicle whose powertrain combines the power Ian Wright, the founder of Wrightspeed, from two or more sources. A powertrain is the the power of their electric vehicles is the main component of a vehicle that produces electricity plus the gas turbine generator. power and delivers it to the road’s surface to The turbine is driving as the generator produce motion. Typically one source will be only keeps the batteries charged rather the engine, and the second one can be from a than providing power to wheels. Though battery or ultra capacitor in electric hybrids. Wright mentioned that the turbine burns methane that is produced from landfills, Since the powertrain is an assembly of gears and the efficiency of this process is unknown.9 associated parts by which power is transmitted from an engine to a driving axle; efficiency, Here’s an example of how Wrightspeed’s performance, and range can be added when a powertrain could potentially save money over Wrightspeed powertrain is incorporated within time: Assuming that the fuel consumption of the hybrid structure. Wrightspeed’s powertrain is the same as that of electric trucks and the retrofit is an additional To upgrade to Wrightspeed’s powertrain, the $150,000. At 7.5 years, the use of the powertrain cost increases by $150,000 relative to the regular from Wrightspeed will begin to save money, at one. According to the Sanitation Department, least $23,000 dollars per year. the price of a regular truck is $250,0008. After the retrofit, the cost of a truck will be $400,000. On the other hand, Autocar Trucks, a Hybrid Despite this increased cost, using Wrightspeed’s refuse truck manufacturer, states that hybrid powertrain, trucks can be saved from the refuse trucks consumes an average of 48% yearly fuel expense under some conditions. It less fuel than the normal diesel refuse trucks is hard to assess the amount that a truck with on routes that collect refuse from 900 to 1,100 Wrightspeed’s powertrain could save because: homes per day. These hybrid refuse trucks do 1. Wrightspeed doesn’t produce the truck not use the Wrightspeed powertrain, but a itself. Therefore it is unclear whether the Parker’s RunWise drive train with a series of total price can be calculated by adding the hybrid drive thus combining the flexibility and price of a regular truck and the price of a responsiveness of hydrostatic operation for powertrain from Wrightspeed. Installing a low and medium speeds with the efficiency of new powertrain system may lead to changes mechanical operation built for highway speeds.10 to other parts of the truck, producing extra expenses. To show a better picture of the overlapping 2. Furthermore, until now only very few trucks components of hybrid/electric trucks and have been retrofitted this way (some FedEx conventional (diesel) trucks, the following trucks). There is almost no data on exact fuel diagram breaks down the main components or electricity consumption by this powertrain. included within the system:

8 The New York Times (2009). Sanitation Department Unveils Hybrid Garbage Trucks. Conventional Refuse Trucks. Retrieved from http://cityroom.blogs.nytimes. com/2009/08/25/sanitation-dept-unveils-hybrid-garbage-trucks/ 9 Wright, I. (2015). Wrightspeed’s Powertrain. Personal Interview. 10 Autocar Trucks (2015). City of Orlando Gains Nine Hybrid Refuse Trucks. Hybrid Refuse Truck. Retrived from www.autocartruck.com/news/city-of-orlando-gains- hybrid-refuse-trucks 11 Hybrid - Generator Refuse Truck - *Plug-in charger (optional)

- E-motor - Power electronics Electric - Battery Refuse Truck

-

Conventional - Internal Combustion Engine - Bigger battery Refuse Truck - Fuel Tank - Plug-in charger

Hybrid refuse trucks have the exact same from the engine to electricity and an optional structure as the conventional ones, which include plug-in charger. On the other hand, electric the internal combustion engine, fuel tank and refuse trucks have a bigger battery pack, as they transmission, with the difference of having rely purely on electricity to be powered, using an electric system added that incorporates an a plug-in charger, and the electric system that , power electronics, battery, plus Hybrid structure haves, along with the same a generator that converts the mechanical energy transmission.

Electric Refuse Trucks versus Conventional Refuse Trucks Economic Comparison at 68,000 annual miles driven.

Financial Metric Electric Refuse Trucks Conventional Refuse Trucks

Distance driven (miles) 60 miles at full charge 130 miles at full tank

It costs $22 to charge the Motiv’s Fuel cost ($) $60-$70 to fill up the tank. Electric Refuse Truck

(*There are no gallons of fuel Fuel economy (mpg) involved anywhere in this electric 3 miles per gallon11 vehicle).

12 Based on both performance and economics, this level of mileage. Despite the electric refuse and given the fact that according to the Federal truck’s shorter mileage distance at a full charge, Highway Administration, the average mileage the Motiv Power Systems’ electric refuse truck traveled per refuse truck is 68,000 miles12, saves 2,688 gallons of diesel per year under this electric refuse trucks can save over 3 times the scenario.13 fuel cost as compared to conventional trucks at

11 McFarland, M. (2015). Your neighborhood garbage truck is a gus-guzzler. The Washington Post. Retrieved from www.washingtonpost.com/news/innovations/ wp/2015/01/23/the-quest-to-find-a-place-for-electric-trucks-on-u-s-roads/ 12 Federal Highway Administration (2014). Heavy Trucks. Market Report. Retrieved from http://cta.ornl.gov/vtmarketreport/pdf/chapter3_heavy_trucks.pdf 13 Casey, T. (2014). Bet your EV can’t Do This: Electric Garbage Truck Hauls 9 Tons of Trash. Clean Technica. Retrieved from http://cleantechnica.com/2014/09/16/first- electric-garbage-truck-in-us-hauls-9-tons-of-chicago-trash/ 13 ©Life-Of-Pix | pixabay 1. Decreasing initial cost a) Total Vehicle Cost transferring to electric sonner. The estimated With an increasing scale of economy and initial costs and the corresponding payback improvements in technology, it is reasonable periods are shown below. to believe that the cost of electric trucks will go down. For example, in the project The left Y-axis is the estimated initial cost ($) of Chicago, the first electric truck was built at at different payback periods. The lower the the expense of $1.3 million because it required a purchase price, the shorter the payback period. lot of development money, according to Motiv The purchase price must be $266,063 in order to founder and CEO Jim Castelaz. The cost per get a payback period of only 1 year. If the initial Motiv’s refuse truck will continue to decline cost is $488,669, which is closer to the current with the first 10 vehicles, after which each one selling price of the electric truck (Motiv electric will be priced at about $500,000 each. truck sells for $500,000), then the payback period is 11 years. The right Y-axis shows how much the The graph below shows the relationship between initial cost must drop per year under different the initial refuse truck cost and the corresponding payback period situations (drop from current payback period. In order for the electric refuse price, $500,000). In order to get a payback period truck to become more widely used, the payback of 1 year, the price must decrease by 87.925%. periods must become shorter so that buyers can In order to get a payback period of 11 years, the yield the benefits of in fuel costs reductions from price must decrease by 0.211% per year.

2 years 7 years 11 years 15 years 300.000$ 400.000$ 500.000$ 600.000$ Estimated initial cost at different payback period Payback period (years)/ Cost ($)

0,5 year 90%

1 year 50%

2,5 year 25% 4,5 year 10% 11 year 15 year 0,211% 0% Annual price decrease rate at different payback period Payback period (years)/ Cost decreasing rate (%) 15 b) Battery Cost14 Advanced Battery Technologies: Distance per 20% charge and energy density will improve, helping Battery Storage (200 kWh) to reduce both the upfront cost and the lifecycle 30% cost of batteries. Balance of Electric System 50% Furthermore, evidence has shown that the cost Refuse truck components of batteries for electric vehicles is decreasing. Battery packs in electric cars account for Electric refuse truck cost distribution17 around one-third of the total price of the car. For example, the price of battery packs in Ford electric cars range from $12,000 to $15,000 for Battery packs for a heavy-duty truck comprise a car that costs $39,200. As with electric cars, 20% of the increase in cost compared to a large portion of the cost of electric refuse conventional garbage trucks.15 trucks results from the battery. With the price of the battery decreasing, the overall cost of an Battery pack cost estimates decreased by around electric truck will decrease as well. 14% annually between 2007 and 2014, from $1,000 per kWh to around $410 per kWh, a total According to the Environmental and Energy drop of 60%. If the trend continues at a similar Study Institute (2014) by late 2013, battery rate until 2025, battery packs could fall to around packs for light electric vehicles had cost $500/ $150/kWh. This means electric heavy trucks could kWh . Since no third party data is available on become cost competitive with conventional heavy-duty electric vehicles, this cost is used refuse trucks over time.16 as a placeholder. For this analysis, the cost per kWh for large-format battery packs are assumed to be the same as small-format battery packs 1.000$/kWh (ideal for electrical refuse tracks) due to lack of information available for heavy-duty trucks. The energy capacity for Motiv’s Power Systems Electric Garbage Truck is 200 kilowatt-hours, giving a total cost of nearly $100,000 for the battery, one-fifth of the cost of a $500,000 410$/kWh vehicle.

150$/kWh Taking into account that refuse truck components cost $250,000, and battery storage (200kWh) cost $100,000, the balance of the 2007 2014 2025 Electric System for an Electric Refuse Truck Cost of Li-ion battery packs in Electric Heavy Duty Trucks is $150,000, since the total price is $500,000. (2007-2025)

16 2. Market demand

According to Market Research’s Strategic Analysis of the Global Hybrid and Electric Medium- and Heavy-duty Market (2014), it has been predicted that there will be a high- growth market for electric trucks17. Key trends that lead to this growth are: a) Further urbanization: urbanization requires d) Charging Infrastructure: more low-noise and low-emissions vehicle charging stations will increase everywhere. in crowded city areas. In fact, PG&E has proposed to build 25,000 EV charging stations across its service, b) Regulations: low/zero-emission urban giving place to a huge deployment of EV zones. Subsidies and tax credits are/will be chargers in the United States for the coming provided for new vehicles, and incentives years18. will be offered for charging infrastructure and R&D. e) Volatile Fuel Prices: Fuel-efficient vehicles will be preferred by customers due to volatile c) Emission Legislation: Countries are fuel prices and fossil fuels shortages due to moving toward environmentally friendly peak oil crisis in 2008, after which the rate technologies. of production is expected to enter terminal decline.

14 FIAMM Group is a billion dollar company in the battery industry, with a global presence, in 60 countries, which manufactures and distributes batteries for automotive usage, industrial usage, and warning devices. FIAMM Group has partnered with Motiv Power Systems to provide to the city of Chicago batteries for their electric refuse trucks, using their unique battery technology “sodium-nickel chloradium” (SoNick Battery). On the other hand, Dutch electric car use one of the most modern Li-ion batteries from one of the top battery suppliers. According to Clean Tech, top current Lithium-ion battery pack manufacturers are Panasonic (Tesla), Mitsubishi/GS Yuasa, Automotive Energy Supply Corporation, LG Chem, Samsung, and SB LiMotive. 15 Cross, J. M. (2014). Plug-in electric vehicles. The price of batteries. Retrieved from www.eesi.org/papers/view/plug-in-electric-vehicles-2014 16 Piellisch, R. (2014). Motiv’s 100% Battery Garbage Truck. Fleets and Fuels. Retrieved from www.fleetsandfuels.com/fuels/evs/2014/09/motiv-for-100-battery- garbage-truck/ 17 Frost & Sullivan (2014). Strategic Analysis of the Global Hybrid and Electric Medium- and Heavy-duty Truck Market. Market Research. Retrieved from www. marketresearch.com/product/sample-8683464.pdf 18 Pyper, J. (2015). Utilities get more proactive on EVs and Charging Infrastructure. Green Tech Media. Retrieved from www.greentechmedia.com/articles/read/Utilities- Get-More-Proactive-On-EVs-and-Charging-Infrastructure

17 3. Savings in Costs with Miles Driven However, compared with the diesel truck, an electric truck saves money with increasing This graph analyzes the relationship between mileage driven. It is around 93,546 miles that money saved in driving an electric refuse truck the total cost of the electric truck (purchase & rather than a conventional truck versus distance fuel) begins to be lower than that of the diesel traveled. truck. After this breakeven point on the X-axis, the electric trucks costs less than the diesel one. Accordingly, 93,546 miles is when positive revenue starts to accrue. This is strongly related 93.500 miles = Start saving money to the average miles driven per day. To reach this milestone in less than 5 years, a truck route would have to average at least 51 miles per day.

115.000 miles = 50.000$ saved With the renewable energy industry, an asset with long-term stable costs and high demand has been able to take advantage of innovative purchasing structures. Given the value of lower fuel costs, structures can be explored for the heavy-duty electric vehicle industry. 130.000 miles = 10.000$ saved One example can be leasing. While leasing is generally more expensive than buying in the long run, it’s attractive to many because it Total savings by electric truck at increasing mileage driven requires very little down payment. This may be ideal for companies or city agencies that have less money to spend or want to conserve As shown in the graph, the Y-axis is the amount working capital3. For one-year use, the total of money ($) saved by using an electric refuse cost of a diesel truck and that of electric truck truck. The X-axis is the total number of miles are equal only when the retail price of an electric a truck travels. For a certain period of time, the truck is as low as around $316,377 (Assuming total cost of an electric refuse truck is more the price of diesel truck is $300,000). than that of a diesel refuse truck because of the high initial cost.

18

©Unsplash | pixabay The time for change is now - a push toward electric refuse trucks will yield real benefits to public health and the environment. It is predicted that electric refuse trucks will find their place in the market due to the fact that Lithium-ion battery’s price has been falling since 2007. Therefore:

• In an optimistic scenario with policy support, batteries deployed in mobile applications could reach $150 per kWh over the next decade, which will make electric refuse trucks more cost competitive. Deployment of this clean technology will contribute to a major reductions in our impact on the climate.

• Lower costs of the most expensive parts in electric refuse trucks can translate to a reduction in price for whole cars. This would help encourage a trigger in higher sales.

• At lower prices there will be new opportunities to increase battery capacity and range, which will likewise expand the market. The larger the market, the more research and development spending will be directed to improve upon this technology.

Transitioning to electric refuse trucks from diesel ones will undoubtedly save money and reduce pollution. Chicago has taken the lead, and now it is time for New York City and others to drive into the future.

21 ©Ebpilgrim | pixabay

Addendum

Complementary Heavy Duty Vehicles (HDV’s) vehicle propulsion options that can be applied to nearly any type of vehicle. For example, In order to achieve a range of zero-emission passenger transport vehicles such as school transportation solutions including heavy- buses and transit buses’ components could be duty vehicles (on-road trucks, school buses, especially well-suited to the power needs, and yard tractors, etc.), these vehicles must have the same happens for off-road vehicles such as similar systems compared to garbage trucks. yard tractors, and large vehicles such as Class TransPower, a leading provider of clean vehicles 8 truck gross vehicle weight rating (GVWR). and stationary energy storage technology and From this Heavy Duty Vehicles category, the products, adapted battery electric technology development and deployment of hybrid electric to large vehicles. This made it possible to school buses has been a great opportunity to integrate an electric drive system that utilizes meet all the needs required in a single project. energy supplied by on-board batteries, with This has provided multiple benefits - an even the capability to optimize for many vehicles better reduction in emissions, a plug-in hybrid applications. bus, a decrease in pollutants inside and outside of school buses, a cut in the life-cycle costs of HDV’s – Electric School Bus school bus fleets, and economic development stimulation. Depending on the vehicle application, electric heavy-duty vehicles can be configured in many Therefore, a few interesting complementary areas different ways, providing a range of electric to look at regarding electric school buses are:

22 1. The similar product components in some cheaper than a refuse truck. By comparison cases, such as batteries. a standard school bus is $110,000. The 2. The eligibility for incentives. California Air spread of $120,000 is less than the spread Resources Board offers a rebate through the with refuse vehicles. Given that Motiv is Clean Vehicle Rebate Program (CVRP) up to producing both, the economies of scale $5,000 for zero-emission vehicles. around school buses may support other 3. The cost of an electric school bus is $230,000 heavy-duty vehicles such as refuse trucks.

Electric Buses versus Conventional Buses – Economic Comparison

The electric school bus can be analyzed based on economic research taking into account costs associated with fuel, electricity and batteries, and other factors:

Financial Metric Hybrid/Electric School Bus Conventional School Bus

Distance driven (miles) 150 miles at full charge19 300 miles at full tank

It costs about $50 - $60 for the 16 It costs about $17 to recharge Fuel cost ($) gallons of diesel that conventional an ’s battery school bus use20

Fuel economy (mpg) It’s 9 miles per gallon21 It’s 6.9 miles per gallon

Based on both performance and economics, at full charge than diesel school buses at full and also given the fact that the average annual charge, they have a higher fuel economy than mileage traveled per school bus is 12,000 miles22, diesel ones. Therefore, choosing an electric hybrid/electric school buses can save over 200% school bus over a diesel bus would save a school of fuel costs compared to the diesel school bus, district $6,070 per seat, or $230,000 per bus or around $9,000 in savings before maintenance over the vehicle’s 14-year lifespan taking into savings. In other words, even though electric account both buses are the same size, with same school buses have a shorter mileage distance number of seats.23

19 Donohue, P. (2013). Electric, zero-emission MTA bus hits the road in pilot program. New York Daily News. Retrieved from www.nydailynews.com/new-york/electric- zero-emission-mta-bus-hits-road-article-1.1455731 20 Chew, K. (2013). Conventional school bus fuel cost. Care 2. Retrieved from www.care2.com/causes/why-electric-school-buses-could-work-a-little-magic.html 21 Hallmark, S., Sperry, B., and Mudgal, A. (2011). In-Use Fuel Economy of Hybrid–Electric School Buses in Iowa. Journal of the Air and Association. Vol. 61. Issue 61, pp: 504-510. 22 American School Bus Council (2015). Average annual miles travelled per bus. Environmental Benefits. Retrieved from American www.americanschoolbuscouncil. org/issues/environmental-benefits 23 University of Delaware (2014). Electric school bus savings. Diesel bus alternative. Retrieved from www.udel.edu/udaily/2014/may/electric-school-bus-052814.html 23 www.globalgreen.org

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