Expanding Everybody Wins to the I5 Corridor

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Expanding Everybody Wins to the I-5 Corridor
Sharon Banks, CEO sharon_at_cascadesierrasolutions.o
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Outline

• What is Everybody Wins?
• Why Cascade Sierra Solutions?
• Mission
• Regulatory Climate
• Partners
• Concept of Showcase Centers
• Roles
• The SmartWay Upgrade
• The Benefits
• When
• Questions

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What is Everybody Wins
What is Everybody Wins?

• Started in 2004 in LRAPA
• Lease to own program for APUs
• Combines a loan, a tax credit and a grant to
  provide low cost leasing of APUs to the trucking
  industry
  
• Developed 25 dealers of APUs in Oregon
• Upgraded 350 trucks with APUs 80 are capable
  of plugging in

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Why Cascade Sierra Solutions (CSS)?

• CSS was born from lessons learned in EBW
• Awareness barrier
• Available products
• Rules regulations
• Needed a more regional or even national focus
• Multi-state operations
• Coordinate resources between states
• Needed a separate organization to focus on the
  mission
  
• Eligible for federal funding and charitable
  donations (501 C 3)

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The Mission

• CSS identifies, promotes and finances technology
  to save fuel and reduce pollution from the
  long-haul legacy fleet of trucks.

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CSS Breaks Down Barriers

• The Awareness Barrier
• Showcase centers to display products
• Information and outreach on rules and
  regulations
  
• The Capital Cost Barrier
• Low-cost lease to own
• Grants identify who qualifies and help with
  paperwork
  
• Tax credits use to subsidize the lease

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Capitalization
Capitalization of CSS Lease Program

• Tax-exempt bonds
• Commercial bank financing
• CMAQ
• Transportation Infrastructure Banks
• Leasing line of credit
• Private contributions
• Corporate sponsorship
• CO2 Offsets

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CSS Manages Risk

• Credit evaluation Goal is no bad loans
• Electronic collection of monthly payments
• Clear trucker understanding
• Dealers that stand behind their products
• Customer loyalty
• Feedback loop
• Interactive webpage to update VMT, APU hours and
  areas of operation
  
• The CSS fleet

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Regulatory Climate
CSS Helps Truckers Stay in Compliance with Rules

• California
• Private Fleet Rule
• No-idle rule
• Anti-Idling Ordinances 25 states
• Subsidies are available in the form of tax
  credits, grants, and low cost leasing
  
• Most truckers are unaware of the subsidies or
  need help with the paperwork

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CSS Partners

• EPA
• SmartWay Transport
• West Coast Diesel Collaborative
• State Local Air, Energy Transportation
  Agencies
  
• Trade Associations
• Technology Manufacturers Dealers
• Truck stops

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The CSS Showcase Center Concept

• Located at truck stops
• Showcases multiple technology solutions
• Is staffed with technical sales and finance
  personnel
  
• Assists fleets and owner-operators in selecting
  equipment and applying for incentives

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The CSS Showcase Center Concept (Continued)

• Is open late to accommodate trucker schedules
• Has a classroom with video conferencing
• Provides an immediate distribution channel for
  emerging products that are approved by CSS

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SmartWay for Short Haul Drayage Applications

• Even though the primary mission of CSS is to
  address long-haul operations, there are products
  in the showcases that have short-haul
  applications as well.

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How the CSS Lease Works

• CSS buys the technology of the truck owners
  choice
  
• CSS pays for installation
• CSS applies incentives to the purchase price
• Finances the balance on a lease to own arrangement

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APUs
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Aerodynamics
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Tires Wheels
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Shore Power Hookups
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Exhaust Retrofits
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Heaters
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Roles of the Partners

• EPA SmartWay Transport
• Identify fuel saving pollution reducing
  technologies strategies
  
• Provide grants incentives
• Promote the program to SmartWay partners
• Provide public recognition to participants

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Roles of the Partners

• West Coast Diesel Collaborative
• Provide a multi-stakeholder collaborative
  approach to solving air quality problems
  
• Provide grants incentives
• Trucking sector workgroup provides a sounding
  board for decision making
  

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Roles of the Partners

• State Local Air, Energy Transportation
  Agencies
  
• Provide input on emerging strategies and
  technologies
  
• Assist with securing loan funds
• Provide grants, tax credits, rebates and
  low-interest loans
  
• Work together to identify solutions that meet the
  goals of all

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Roles of the Partners

• Trucking Associations
• Provide input on emerging strategies and
  technologies
  
• Work together to identify solutions that make
  good business sense
  
• Assist in lobbying government for tax credits in
  support of products that improve transportation
  infrastructure

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Roles of the Partners

• Technology Manufacturers Dealers
• Help support the operating costs of the centers
  with a 6 discount to CSS
  
• Provide manufacturers certified installation and
  maintenance network for CSS products
  
• Work together to identify solutions
• Provide demo products to the showcase
• Provide technical training to CSS staff
• Broadcast new products over CSS video conferencing

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Roles of the Partners

• Truck stops
• Provide leased space to CSS
• Participate in press events at CSS
• Support environmentally friendly solutions
• Help convey the message of SmartWay as the new
  and improved way of trucking
  
• Be part of the solution to bring a selection of
  products to the trucking industry
  

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One Truck

• Travels 100,000 miles per year
• Gets 5 miles to the gallon
• Uses 20,000 gallons of fuel

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One Truck

• Emits
• 220 tons of carbon dioxide per year
• 165 lbs of PM2.5 laced with over 40 carcinogenic
  substances
  
• 2819 lbs of Oxides of Nitrogen (NOx)
• Harmful hydrocarbons

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One Truck with Smart Way Technology

• Travels 100,000 miles per year
• Gets 6.66 miles to the gallon
• Uses 15,000 gallons of fuel

I saved 12,500 In fuel this year!
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One Truck with Smart Way Technology

• Saves 50 tons of carbon dioxide per year
• Reduces air pollution by 25
• PM2.5 / NOX / Hydrocarbons
• Saves 5,000 gallons of fuel

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Truck with SmartWay Technology
Diesel Exhaust Retrofit
Trailer end caps
Automatic tire inflation
Aluminum wheels
Gap fairings
Trailer side skirts
Single-wide tires
APU
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Payback Period

• The average cost of a SmartWay upgrade kit is
  16,000
  
• The fuel savings can amount to 1,250 per month
• The monthly lease payment is about 300 for a
  60-month CSS lease
  
• The truck owner enjoys an immediate net cash flow
  benefit of about 950 per month
  

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Initial Locations
Initial Locations
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Timing

• July, 2007
• Grand Opening of at least three CSS showcase
  centers
  

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Questions
?