Natural Gas (Gaseous Fuel) » Biodiesel » Electric » Hybrid (Including Plug In) » Conclusions

Medium-Duty AFV Trucks Tom Brotherton, CALSTART May 21, 2014

» CALSTART Background » A World of Change » The Options Landscape for Medium-Duty » Natural Gas (gaseous fuel) » Biodiesel » Electric » Hybrid (including Plug in) » Conclusions

Mission: Support and expand clean transportation technology industry

Tech and fuel neutral

TECH: Develop, manage and validate technology via Role: projects Speed Mission: POLICY: Develop policies Support and development, validation and to support clean expand clean transportation development transportation use of clean and use industry transportation systems USE: Help fleets and others choose and use clean transportation

SUPPORT: Provide members access to opportunities, connections, info, trends

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Copyright 2014 CALSTART Smart Incentives to Move the Market: States-Regions Leading » Chicago has $11.3M electric truck voucher; $1.4M NG/Elec infrastructure; $1.3M Green Taxi (NG) » California invested >$60M in voucher program for hybrid and electric trucks; has a parallel program for NGVs www.californiahvip.org » New York $19M voucher program for hybrid, electric and NG trucks

» GLOBAL WARMING – Dangers more clear; push to reduce GHGs intensifying and pushing fuel economy – » Passenger cars on path to 54.6 mpg: New fuel economy rules for med & heavy trucks coming » Energy efficiency reduces GHG impact; Fuel switching and blending reduces GHG impact; Modal split (transit and rail) has long term role

» ENERGY SECURITY: FUEL SUPPLY AND COSTS – Traditional fuel supplies more expensive » The need for alt and biofuels is increasing » Huge supply of low cost NA natural gas from new production (hydrofracturing) » Regional fuel variation and choice becoming more prevalent

» EMISSIONS REDUCTIONS – New Ozone rules likely for US, could double number of regions in non-attainment » Fine particulates (nano particles) will be of increasing concern from combustion » Diesel fuel still challenged in dirtiest regions (ports, Southern California)

» Climate Change 2014: Impacts, Adaptation, and Vulnerability » Key Finding: “Many climate stresses that carry risk – particularly related to severe heat, heavy precipitation and declining snowpack – will increase in frequency and/or severity in North America in the next decades (very high confidence).”

http://ipcc-wg2.gov/AR5/images/uploads/WGIIAR5-Chap26_FGDall.pdf Copyright 2014 CALSTART President’s Truck Fuel Economy Announcement Feb 2014 • New “Phase 2” truck fuel economy rules under development • Draft rules March 2015 • Final rules March 2016 • Vocational and long haul

» EPA likely to enact tougher standards on ozone (urban smog) » Drop from 75 ppm to 65-70 ppm based on health impacts » New rules had been delayed from 2008 when proposed » Could double US regions in non- attainment

From Dallas Morning News Copyright 2014 CALSTART Efficiency Remains Driver » Light duty adding improved combustion, turbocharging, multi-speed transmissions, aerodynamic features to cars and trucks – based on new Fed CAFE » In big rigs, tractor and trailer aerodynamics, low rolling resistance tires are current focus – but next gen includes turbo-compounding, thermal energy recovery, idle reduction » In vocational trucks, some hybrid and electric options, big interest in natural gas (for price rather than efficiency) » More stringent truck standard under development

Copyright 2014 CALSTART For Fleets: Many Options to Consider Fuels Technologies Strategies Ethanol: avail now; regional; Adv. Engine/Powertrain: cylinder Fleet driver process and feedstock on demand; improved combustion;; training/ eco- improving; small CO2 gain but turbocharging; transmissions driving growing Hybrid: models of ALL types Telematics Propane: vehicle models including start-stop expanding in available; special fueling; LD; OEM production in MD/HD and Platform/engine small CO2 gains prices dropping; 20-50% size reduction: Natural gas: low price, high carbon/fuel reduction “right-sizing” production/jobs; controversy on platforms Electric: LD products expanding, production; limited multiple makers; MD products Dispatch infrastructure but expanding; emerging for delivery/ urban niche CO2 benefits; Biomethane changes, work changes to Biodiesel: feedstock Plug-in hybrid: first LD products reduce/optimize available; first pilot products in concerns; CO2 gains; NOx vehicle use issue M/HD; business case varies based Renewable diesel: on fuel prices; strong policy support Routing emerging option efficiencies: Hydrogen: longer term Fuel Cell: still early demos; limited VMT reduction option; transit; blending testing; some deployments 2015? Copyright 2014 CALSTART Biodiesel and Renewable Diesel

» Volumes still low but production and use increasing though incentives lapsed – some impact from feedstock switching to produce ethanol, drought » Most OEMs accepting increased biodiesel use – fuel spec has now been developed for B1-B20 levels » Little or no performance drop off from conventional diesel; some operating concerns (such as cold weather) » Reduced greenhouse gases and particulates from diesel

Copyright 2014 CALSTART Natural Gas » Growth of natural gas continues » 2:1 price differential over diesel remaining relatively steady » But, Growing concern over fracking, methane leakage » Fleets have several OEM pickup and van options » ALL medium and heavy-duty OEMs now offer natural gas (Freightliner, Mack, Volvo, Kenworth, Peterbilt, Navistar) » Slow down in new engines coming available for trucks » Growth beginning in line haul applications; Niches remain strong (transit, refuse, ports); » Infrastructure still barrier, though fuel partners available and corridors are growing Copyright 2014 CALSTART Cummins-Westport Product Line

B Gas Plus ISB6.7 G C Gas Plus ISL G ISX12 G

• 5.9 Liter • 6.7 Liter • 8.3 Liter • 8.9 Liter • 11.9 Liter • 150-230 hp • 200-260 hp • 250-280 hp • 250-320 hp • 320-400 hp • Euro 5, EEV • EPA 2013, Euro • Euro 3, 4 • EPA 2013 • EPA 2013 6 • Euro 5 by 2014 • Euro 5, EEV

• Introduced •Introduced in • CARB • Launched in 2000 • Development 2005 Certified in 2013 starting 2012; 2007, 2015 launch launched 2008 All engines use simple, passive, maintenance-free exhaust aftertreatment. Copyright 2014 CALSTART Natural Gas: Compelling Long Term Fuel » New “fracking” tech allows economical access to natural gas » Current and future production projected to outstrip demand » US has some of the largest NG reserves in the world » Fleets seek price certainty & stability

A doubling of the price of natural gas increases prices at the pump only $0.50 per GGE

Copyright 2014 CALSTART Fracking – Expect More Controls » Hydraulic fracturing used to extract natural gas (and oil) has greatly expanded nation’s supply but is under increasing scrutiny » EPA report due out this year

Copyright 2014 CALSTART Methane Leakage – Growing Concern » Science published study in Feb, EDF studies underway looking at methane leakage in production, use of natural gas » Methane a very potent greenhouse gas » If leaks are major, could negate climate benefits Copyright 2014 CALSTART Ultra Low Emitting Engines in Development » Cummins and Cummins-Westport developing next generation low NOx NG engines – 50% or lower than 2010 EPA » Cummins building 15 liter development engine; Cummins-Westport improving an 8.9 liter engine » Demonstration by 2015 » California needs even lower NOx emissions than current EPA engine standards – 80% lower by 2030!

» Medium-duty all-electric trucks available in North America, new players emerging but market slow at moment; Smith Trucks, EVI, Boulder, AMP, Motiv, Orange EV, Trans Tech Bus, Zero truck » Increased petroleum prices makes an improving business case in right applications » Criteria and GHG emissions very low; varies depending on fuel source of power plants, each region different » However: powerplant emissions improving over time everywhere Copyright 2014 CALSTART Electric Trucks – Assessment Underway

» Six-county metro area » Incentive tied to battery pack size: $15,000 + $375 x kWh Examples: 40 kWh = $30,000 100 kWh = $52,500 300 kWh = $127,500

Smith Newton Chicago Incentives: $37,500 (60 kWh) - $60,000 (120 kWh)

BEV 500: Delivery van, shuttle bus, flatbed, service body Chicago Incentive: $37,500

» Walk in van EV » Workhorse chassis » Can retrofit existing diesel chassis » Dual motor system » Chicago Incentive: $52,500

» All electric yard tractor » Up to 80,000 pound loads, up to 20 hour work days

Chicago Incentives: $45,000 (80 kWh) - $75,000 (160 kWh)

Motiv E450 Cutaway Chassis Chicago Incentives: $45,000 (80 kWh) - $60,000 (120 kWh)

» ERV – Electric Refuse Vehicle, City of Chicago » Up to 10 possible » 60 mile range, 70 compaction cycles, 10 battery packs » Crane Carrier Chassis, Loadmaster 20 cubic yard rear loader body » Targeting Chicago incentive: $90,000

» Trans Tech Bus SST-e; uses Motiv ePCS » Type A school bus on E450 chassis » 80 and100 mile range options » Up to 25 students plus wheelchair lift versions

Medium-duty truck, walk-in van Targeting Chicago incentive ($52,175)

Capacity

Vision Industries

Zero Truck

Balqon Copyright 2014 CALSTART VIA Motors Close! » Range extended electric trucks and vans in final certification » Upfit new after trucks off assembly line » First units being delivered to some customers

To get sufficient payback, need to drive maximum miles possible (or maximum use of energy) • Dedicated, return-to-base routes with known daily mileage highly valuable

High Utilization/Daily miles (5-7 days a week) seems important

70-100 miles/day seems like an initial “sweet spot” for fuel savings payback (sufficient miles to generate fuel savings needed)

1. Fixed route applications - 70% • Stop and go • Localized, dedicated routes • Short haul • Limited range • ‘Spoke and hub’ • Urban Delivery, Refuse, Mail trucks, Transit Buses

2. Facility vehicles – 19% • Airports, seaports, railyards, military bases, parks, resorts • Warehouse support and maintenance • Cargo handling

3. High idle, work site applications – 11% • Aerial devices • PTO • Utility vehicles

Copyright 2014 CALSTART Hybrid Technology » Products in market for medium- and heavy- duty vehicles » First focus is urban work trucks: Class 4-8 refuse, utility, delivery; class 8 drayage, line-haul and construction equipment are in demonstration » M/HD Market slowed a bit by regulatory issues (OBD), fleet evaluations » Hybrids multiply benefits when combined with low carbon fuels (biofuels, NG, electricity – plug-in)

» New conversion, retrofit options showing attractive price points » Hino Class 5 Cab-over highly competitive for price and selling well

» Hybrid electric system for Class 3-7 trucks, buses and delivery trucks » Light systems can bolt to vehicle frame rails » Uses ultra capacitors instead of batteries » Captures and releases braking energy quickly » New and retrofit capable » Tests show up to 30% fuel economy improvement

» Fast conversion process uses QVM

Hydraulic Hybrid – Class 6 » Parker Hannifin, Freightliner Custom Chassis, Morgan Olson moving into production of a series hydraulic hybrid for delivery cycles » Completed initial validation testing – have seen 40-50% fuel economy improvement » Major delivery fleets in first deployments

» Odyne next generation systems now being deployed » Several models » Plug-in hybrid utility bucket trucks » PHEV “digger-derrick” version 6/08, a higher power-demand work truck » PHEV underground compressor truck

» Altec, Terex, Time, and others with systems » Stored energy to operate lift, tools at work site » Separate from and does not change conventional driveline » Fuel savings and idle reduction benefits

Mark Your Calendars! 2-Day Event with Working Groups, Work Sessions and Ride & Drive www.htuf2014.org Copyright 2014 CALSTART Summary » Climate change concerns and need for efficiency driving rapid vehicle change – next 10 years will see significant penetration of key technology, fuels » More options than ever – several still in relatively early stages and assessment » Not every tech or fuel works best in every application – fleets need to look at how they use their vehicles, match use, infrastructure to options that fit their need

Tom Brotherton CALSTART 303-825-7550 x1 [email protected]