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The State of Sustainable Fleets

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The State of Sustainable Fleets THE STATE OF SUSTAINABLE FLEETS Key Findings SmartWay Webinar Mike Costanza Nate Springer Director, Environmental Services Director, Market Development Penske Transportation Solutions Gladstein, Neandross & 1 Associates [fj sUSf AINABLE q} FLEETS Webinar Housekeeping • Submit a question via the Questions box on your GoTo control panel. • After the presentation, as time permits, our EPA presenter will answer questions submitted via the Questions box. • Please complete the survey at the end of today’s webinar. Your feedback is important to us! The presentation slides and recording will be available at: http://www.epa.gov/smartway/smartway-freight-matters-webinar-series stateofsustainablefleets.com/ 2 ~ s USf AINABLE ij FLEETS PRESENTERS NATE SPRINGER MIKE COSTANZA Director, Market Development Director, Environmental Services Gladstein, Neandross & Associates (GNA) Penske Transportation Solutions 310-279-7760 610-775-6471 [email protected] [email protected] stateofsustainablefleets.com/ 3 @ sUSfAINABLE WHO IS GNA? FLEETS At its core, GNA has deep experience supporting fleets to use advanced, clean technology. We leverage that expertise to provide value to the full industry. Clients and events include: Port of LONG BEACH TnrG.rml Ifft ~ KRLMRR .........NEW YORK CITY • w ii I . -- I TI):1--~ ,' stateofsustainablefleets.com/ 4 State of Sustainable Fleets The Trends and Demand for a Sustainable Fleets Resource 5 ffe SUSTAINABLE Poll Question #1 FLEETS stateofsustainablefleets.com / 6 [fj sUSf AINABLE q} FLEETS STATE OF SUSTAINABLE FLEETS TITLE SPONSORS SUST Al NAB LE F'LEETS [PENSKE] Rental I Leasing I Logistics SUPPORTING SPONSORS GEOTAB management by measurement Founding sponsor .7 DTE Energy· stateofsustainablefleets.com/ C . 7 r; SUSTAINABLE A FLEET RESOURCE FLEETS • Diesel / gasoline efficiency and renewable fuels • CNG, Propane, Battery Electric, Hydrogen Fuel Cell (and renewable energy for each) • 9 fleet types including Regional Haul, Long-Haul, Delivery, Utility • Survey data from 400+ fleets • 6 years of vehicle sales data • 10 years of fuel costs and station counts • Biggest trends and headlines by market-makers Comparison to diesel and gasoline vehicles used by fleets today. stateofsustainablefleets.com/ 8 SA 0 SUSTAINABLE Regulators and customers are ratcheting up FLEETS requirements Model Year Class 2b-3 Group Class 4-8 Group* Class 7-8 Tractors Group•• Zero Emission Regulation 2024 5% 9% 5% 2025 7% 11% 7% -_,_~~ EU 2026 10% 13% 10% 2027 15% 20% 15% - Walmart f 2028 20% 30% 20% Hainan 2029 25% 40% 25% ,J 100% NEV 2030 30% 50% 30% ':!. ~. by2030 2031 35% 55% 35% 15 US States and DC 30% ZEV by 2030 2032 40% 60% 40% "'- ·- ,._, (MoU signed) 2033 45% 65% 40% .,. 2034 50% 70% 40% Globally C40 Cities ... 2035+ 55% 75% 40% 100% ZEV by 2030 amazon,;-J In 2020, California committed to 9 states (incl. NY, NJ, MD, OR) Both Amazon and Walmart have 100% zero-emission passenger follow California’s zero-emission set goals to transition their vehicles by 2035 and passed vehicle requirements. 15 states transportation networks to zero- requirements for OEMs to sell & DC signed an MOU for zero- emission vehicles in the 2030- 30-50% zero-emission vehicles emission vehicles to reach 30% 2040 timeframe. for medium- and heavy-duty by of sales by 2030. 2030. stateofsustainablefleets.com/ 9 SA 0 SUSTAINABLE Market leaders across the full trucking value FLEETS chain commit to lead the transition Projected Battery Pack Cost Lithium Ion $/kWh 200 160 120 80 2025 2030 Roger Nielsen, CEO of Daimler In 2020, Shell and BP become Jay Craig, CEO of Meritor, the Trucks North America, the the first global energy majors to leading producer of axles for leading manufacturer of Class 8 commit to a net-zero emissions heavy-duty trucks and other tractors, announced in 2019 that goal by 2050. parts, sees a big opportunity his company would lead the EV when the total cost of ownership transition. for EVs to reach parity, which Meritor expects in late 2020s. stateofsustainablefleets.com/ 10 susfAl NAB LE Over $5Bn of public incentives for vehicles FLEETS and infrastructure (2021) 0 200M North Dakota Sou th Dakota Nebraska vada Kansas bia. Oklahoma Arizona M X B a Ca • Ta ~l fornl~ S. r UI p stateofsustainablefleets.com/ State of Sustainable Fleets Fleet Adoption of Sustainable Technologies 12 SA 0 SUSTAINABLE FLEETS UNIQUE INSIGHTS ACROSS THE INDUSTRY Natural Gas Propane NGV so les growth is led by straight truck and transit segments Demond for propane fuel hos grown PART I 100 :······ - ··-·· •• •• •• - -- 27% INCREASE ··· -·· ···· ---··-···· ····· ··· 7000 90 BO 6000 ~ 70 C) z 5000 60 ;i: ~ ~ ,o 0 '°°° w 3000 JO 20 2000 iz 10 1000 0 2015 2016 20 17 2018 2019 2020 2015 2016 2017 2018 YEAR YEAR OF REGISTRATION - Notional Demand rop 4 State$ Demand ■ Stroightlrvc.k. ■ Transit Bus ■ CorgoVon ■ TroctorTrvck ■ Pickup ■ Culo'NOy ■ School Bus ■ Passenger Von ■ Cab and Chas:sis SUSTAINABLE FLEETS ARE GROWING Battery Electric Vehicles Hydrogen Funding and deliveries for battery-electric buses grows Hydrogen fuel use in California has begun and is growing Sustainable vehicle and fuel 3500Xl use is growing across all ~ 3000JO "z 0 2500X) categories of medium- and ,:: 20CXXXJ heavy-duty alternative fuel lz 0u ISOOXJ z vehicles: natural gas, 100000 "~ 500X) ~ propane, battery electric :,: 2015 2016 2017 2018 2019 vehicles, and hydrogen fuel YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 cell electric vehicles. - Awarded - 0e11vered - HYDROGEN {GGE) Source: 2020 research. Does not account for economic impact of COVID-19. stateofsustainablefleets.com/ 13 [fj sUSf AINABLE q} FLEETS UNIQUE INSIGHTS ACROSS THE INDUSTRY 1EXPECTED USE OF CLEAN TECHNOLOGIES BY FLEET TYPE GR O W CONSTANT DECREASE Munic ip a l/Shuttle 20 2 Ut il ity Truck 8 5 Urb an Delivery 5 0 0 School Bus 22 5 0 SUSTAINABILE TECHNOLOGY Tran sit 28 3 0 MORE THAN A TREND Refuse 3 0 0 Heavy-Duty - Sho rt Ha ul 13 0 98% of fleets surveyed currently using sustainable Heavy-Duty - Long Haul 4 0 technology expect to Heavy-Duty - Lo ng/Short Ha ul 17 4 continue at the same level or Totals increase their use of these 83.3% 14.6% 2.1% vehicles and fuels. Source: 2020 fleet survey. Results being tallied now for 2021 are similar. stateofsustainablefleets.com/ 14 [fj sUSf AINABLE q} FLEETS Key Findings: Diesel & Gasoline Fuel economy of 21 heavy-duty fleets in an efficiency study is 22% higher than national average 7.4 7.2 7.0 C) 6.8 a.. 6.6 :E 6.4 6.2 6.0 5.8 2003 2004 2005 2006 2007 2008 2009 2010 201 I 2012 2013 2014 2015 2016 2017 2018 YEAR - Average MPG All US Trucks stateofsustainablefleets.com/ 15 r; SUSTAINABLE Key Findings: Near-Zero-Emission FLEETS Vehicles Fleet types leading adoption NATURAL GAS VEHICLES ~ GV growl y s I ru k n tr sits m nf HD SHORT HAUL LONG~- & SHORT HAUL (HD) 1A I 1 7000 :> l!iOOO 5000 ~ ~ .f{OJ ~ 0 REFUSE TRANSIT Ill: 20(X) ;:! :z 1000 0 EA Of IEG lTIAfJO ~ MUNICIPAL / ■ 1 Strtf tTruc ■ CorgoVm, Tr □ c O!' Trvcl-' p· r P ■ Cvla URBAN DELIVERY SHUTTLE ■ Sc::hOotSU!i Caba dC~is New registrations of Class 2a-8 natural gas vehicles between 2015 and 2019 by vehicle type and by year. Source: IHS Markit. UTILITY stateofsustainablefleets.com/ 16 r; SUSTAINABLE Key Findings: Near-Zero-Emission FLEETS Vehicles Fleet types leading adoption NATURAL GAS VEHICLES HD SHORT HAUL LONG & SHORT HAUL (HD) REFUSE TRANSIT California natural gas vehicle fuel reaches carbon negative MUNICIPAL / URBAN DELIVERY CARB data reveals the average carbon intensity of natural gas SHUTTLE vehicle fuel in the state's Low Carbon Fuel Standard program was negative for the first time in program hi story. N0V16, 2020 Source: California Air Resources Board, published in FleetOwner UTILITY 17 r; SUSTAINABLE Key Findings: Near-Zero-Emission FLEETS Vehicles Fleet types leading adoption PROPANE (LPG) VEHICLES sc ~ ~ I a d d nv ·· ry ti ·· ~ ts I . · a d r _a · v ic l · r. i :tr a tT n-~ A T REFUSE SCHOOL BUS ■ I Jnltl ::ial, Shu11.e MUNICIPAL / 4 URBAN DELIVERY SHUTTLE UTILITY Sales of class 2a-8 propane vehicles between 2015 and 2019 by vehicle type. Source: OEM and Aftermarket sales data aggregated by Propane Education & Research Council. 18 r; SUSTAINABLE FLEETS Key Findings: Zero-Emission Vehicles Fleet types leading adoption BATTERY ELECTRIC VEHICLES rn0 0 Tran sit, shutHe and school buses Transit and delivery fleets have HD SHORT HAUL TRANSIT lead EV purchases in California1s the largest BEV counts in 2019 HVIP program PARTl PART 2 32 3 SCHOOL BUS MUNICIPAL / ■ Transit Bus ■ Transi t SHUTTLE ■ Shuttle Bus Delivery ■ School Bus IJ tility 35% Parcel D.alivery ■ O her Truck ■ Other Bus ■ Refuse Truck URBAN DELIVERY UTILITY 187 Around 2,000 total Class 3 – 8 BEVs are in the hands of fleets today, majority are transit and school buses (2019) 19 r; SUSTAINABLE FLEETS Key Findings: Zero-Emission Vehicles Fleet types leading adoption BATTERY ELECTRIC VEHICLES Only 13% of public charging stations provid,e DC fast charging rates HD SHORT HAUL TRANSIT ■ EV L.e vel l ■ EV L@vel 2 MUNICIPAL / SHUTTLE ■ DC FC Inon-I esla] DC FC !Tesla] URBAN DELIVERY UTILITY Public charging for fleets is lagging… 20 r; SUSTAINABLE FLEETS Key Findings: Zero-Emission Vehicles Fleet types leading adoption BATTERY ELECTRIC VEHICLES rn0 0 HD SHORT HAUL TRANSIT Nearly all surveyed fleets who pllan to use BEVs will install their ·own charging. Around 1/3 will install storage and onsite generation t!) z ~w Cj t Ori: 1:1.. <S 0 0LI.I SCHOOL BUS MUNICIPAL / SHUTTLE Ill w = ~('.}< = !oO""" $- [I> z 0 I:! i= ~~ 33% URBAN DELIVERY UTILITY 0~w C, 0% Ill% 91)% lOO';ll …so most fleet adopters of EVs are installing depot charging.
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