Expanding Everybody Wins to the I-5 Corridor

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Expanding Everybody Wins to the I-5 Corridor
Sharon Banks, CEO Jon Gustafson, Board of
Directors Sharon_at_lrapa.org
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Outline

• Mission
• Regulatory Climate
• Partners
• Concept of Showcase Centers
• Roles
• The SmartWay Upgrade
• The Benefits
• The Timeline
• Questions

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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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Breaking Barriers

• The Awareness Barrier
• The Capital Cost Barrier
• Low-cost lease to own
• Grants

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Capitalization
Capitalization

• Tax-exempt bonds
• Commercial bank financing
• CMAQ
• Transportation Infrastructure Banks
• Leasing line of credit

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Risk Management

• Credit evaluation No bad loans
• Electronic collection of monthly payments
• Clear trucker understanding
• Dealers that stand behind their products
• Build customer loyalty
• Feedback loop
• Webpage to update VMT APU hours
• The CSS fleet

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Regulatory Climate
The Regulatory Climate

• 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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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 Showcase Center Concept

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

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The Showcase Center ConceptContinued

• 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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How the CSS Program 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
• 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

• Trade 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 Smart Way 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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Initial Locations
Initial Locations
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28,800 SmartWay upgrades Results 2007-2015

• 144 Million Gallons of Fuel saved
• 1,440,000 Tons of CO2 eliminated
• 2,376 Tons of PM2.5 eliminated
• 40,450 Tons of NOX eliminated
• 360 Million in health care reduced

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Timing

• March April, 2006
• Establish CSS entity
• Apply for West Coast Collaborative Grant
• Assemble the initial board of CSS
• Apply for funding with Oregon State
  Infrastructure Bank
• Prepare CMAQ applications, Portland Medford

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Timing

• May July, 2006
• Convene the Board
• Assemble the Technical Advisory Team
• Establish initial website
• Roll out CSS at two major events
• Identify showcase locations and negotiate lease
  agreements
• Apply for lease line of credit
• Establish lease line of credit with commercial
  bank
• Sign contracts with technology vendors dealers

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Timing

• August - September
• Establish headquarters
• Hire key staff
• Design database to track sales, leads, trucks,
  improvements and emissions reduced
• Design networked accounting system
• Evaluate video conferencing systems
• Establish corporate policies
• Select building designs
• Prepare RFP for design-build contract per CSS
  specifications

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Timing

• October-June
• Award contract for building CSS centers
• Construct centers
• Install systems
• Set up displays
• Hire and train staff for centers
• July, 2007
• Grand Opening of 5 CSS showcase centers
  (including the headquarters)

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Questions
?