VIS Vehicle Conversions RePower White Paper

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A NEW DAY IS FUELING AMERICA
WAY
REPOWERING To Natural Gas Vehicles
A FULLY INTEGRATED DriveTrain Provider
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WHY NATURAL GAS FOR TRANSPORTATION ?
Its Cheaper up to 40 less per gallon than
diesel Its Renewable over 33 of our reserves
found in last 3yrs Its DOMESTICALLY
Abundant a 300 yr supply Its LOW
CARBONS NEAR ZERO EMISSIONS Its the BEST
DIESEL/GASOLINE ALTERNATIVE
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A FULLY INTEGRATED DriveTrain Provider
Due to the dwindling supply of oil, prices of
petroleum based fuels are constantly climbing.
All around the USA (and WORLD) people depend on
their petroleum powered vehicles and with recent
wild fluctuations in prices they are looking for
an alternative. Unfortunately most new
technologies are decades away or just not
feasible. Fuel cells, ethanol, and hydrogen
vehicles are some examples that are decades away
from working in Heavy Duty Vehicles if they ever
will. Natural Gas is an inexpensive, plentiful
fuel that is produced domestically. Natural gas
vehicles are proven and have been running around
the world for over a decade. There is no wonder
why more people, fleets, and governments are
switching to natural gas powered vehicles. WE
at VALLEY are 100 engaged to promote and engage
all stakeholders in developing the proven
conversion of Heavy Duty Vehicles from
Diesel/Gasoline to the cost-energy-emission
savings benefits of NATURAL GAS
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The Valley Natural Gas Partnership
Valley partners are Industry Leaders that have
created a comprehensive platform that leverages
current technology and program competencies. We
will offer to School Districts, Fleets
Municipalities our turn key solution for vehicle
conversion from Diesel-Gas or Propane to Natural
Gas Vehicles. Our Mission is to. Be the leader
of vehicle conversions and make opportunities for
our customers in Converting Existing Vehicles
to a be Greener, Safer more efficient. Helping
to reduce overall spending for transportation by
converting petroleum based existing vehicles to
natural gas, extending vehicle end of life cycles
to be greater than the original
OEM!!! Replacing 3.5 million of these heavy
vehicles with natural gas vehicles by 2035 would
save more than 1.2 million barrels of oil per day
compared to business as usual, which is more than
we imported from either Venezuela or Saudi Arabia
in 2009. ---the Center for American Progress,
Developing Natural Gas for Heavy Vehicles, April
14th, 2010

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A FULLY INTEGRATED DriveTrain Provider
The Valley Story With over 55 years of services
to the Heavy Duty Truck Market, Valley is a
recognized leader for Remanufacturing and
Distribution of Light to Heavy Duty Truck Parts.
Our HME division is an OEM manufacturer of
Emergency Vehicle Fire Equipment, HME has a Truck
building legacy dating back over 90 years. Our
combined strengths enable us to provide
outstanding products, customer loyalty, that
provide the highest standards for quality and
reliability in our Manufacturing Companies.
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A FULLY INTEGRATED DriveTrain Provider

• HME History
• The present company's roots began in 1913, with
  Magnus Hendrickson. Magnus, an innovator of his
  time, designed and manufactured custom truck
  chassis. In manufacturing these custom trucks
  Magnus realized the potential of two rear axles
  on a truck. Magnus's developments of two rear
  axles lead into the manufacturing of suspensions
  for his applications. Hendrickson Suspension
  today manufacturers suspensions for several truck
  and trailer applications. In 1978 the
  Hendrickson companies were sold by the
  Hendrickson family to Boler Investments. The
  Boler Group decided to maintain a posture as a
  supplier and vendor to the truck industry and
  early in 1985, the Mobile Equipment firetruck
  product line was sold to Kovatch. In September of
  1985, the remaining assets of the Mobile
  Equipment Division were sold to the present
  owner's. Under the new ownership the first design
  project was to develop a custom conventional
  truck. The result was the VT-100. A Class 8
  conventional truck chassis designed and developed
  for the rigors of construction applications. Some
  of the custom applications that this chassis has
  been used for are
• Ingersoll-Rand Drill Rigs for mineral and
  geothermal exploration drilling
• G.E. Failing for water well drilling
• NASA Shuttle Operations
• Gravel hauling (160,000 GVWR in Michigan)
• Heavy Wreckers
• Waste Management for recycling and waste
  collection and transportation
• Firetrucks for 3,000 gallon tankers

HME Natural Gas Emergency Vehicle
HME's other products lines include heavy drill
rig chassis utilizing "I-beam" fabricated frames,
chassis for medical coaches, transit buses and
tour buses. In 1988 the company's manufacturing
facility relocated from the Chicago area to a
suburb of Grand Rapids, Michigan. In 1989, HME
began design and production, under private label,
a series of firetruck chassis for Grumman
Emergency Products of Roanoke, Virginia. The
basic chassis design for the firetruck was
developed as a variation of the VT-100
conventional truck chassis. These products known,
by Grumman, as the Panther II (Pumper) and
Panther I (Aerials) chassis were manufactured
into the year 1992. HME produced almost 300
chassis for Grumman during three year period.
With the announcement of the closure of Grumman's
Emergency Products Division in 1991, chassis to
other manufacturers. Until HME's entrance into
the industry's independent apparatus builder's,
the 1871 Series firetruck cab and chassis were
not available to any other apparatus manufacturer
in the U.S. and around the world.
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American Fuel Developing Natural Gas for Heavy
Vehicles SOURCE AP/Marcio Jose Sanchez
Mike Keele pumps liquefied natural
gas onto a garbage truck at the Waste Management
offices in Oakland, California, where almost 500
garbage and recycling trucks run on natural gas
instead of diesel fuel. By Nick Wellkamp, Daniel
J. Weiss April 14, 2010 Creating incentives
to convert the nations heavy vehicle fleet to
natural gas would reduce oil use, invest in
American energy sources, increase our energy
independence and national security, and slash air
pollution. Natural gas is the cleanest fossil
fuelit produces less than half as much carbon
pollution as coal for electricity and up to 25
percent less than oil for transportation.
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A New Direction for Alternative Fuels
Increasing Importance Of Alternative Fuels
Cost Reduction

• Alternative fuels have the potential to
  significantly reduce operational cost.

Environment

• Alarming levels of air pollution reached in
  metropolitan areas.
• Challenging stringent environmental requirements.

Independence

• Critical component of any strategic plan for
  economic development and national security.

Reliability

• Energy consumption is increasing at a dramatic
  rate.
• Accelerating depletion of traditional energy
  sources.

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A New Direction for Alternative Fuels
US Market an Ocean of Natural Gas
08.2003 06.2008 Increase Global
NGVs 2.8 Mio. 8.6 Mio. 200 Global NGV
Stations 6450 13000 100

• ? Only a few of the 22 top shale basins in the US
• have been significantly explored
• Explosive growth in the US gas shales -
  Production
• increase from 0.3 Tcf p. a. to 1.1 Tcf p. a.
• ? Rapid increase in Production rates in the
• Barnett, Fayetteville, Woodford and Marcellus
• Shale have spurred investment in pipeline
• infrastructure to bring this gas to the
  market!

Natural Gas in only Fuel that can achieve
significant foreign oil displacement for the
US Source The Gas Vehicle Report 03/09 US DOE
M. Pratt Clean Energy
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Benefits . A natural gas school bus displaces a
average of 1400 gallons of diesel fuel per
year . Natural gas engines reduce CO by 70 NMOG
by 87 NOx by 87 CO2 by 15-20 .
Benefits . Natural gas is up to one-third
less expensive than diesel fuel on an equivalent
energy basis . 90 percent of natural
gas consumed in the United States is domestically
produced
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Myth 8 CNG buses are unsafe. Fact 8 CNG buses
have some different safety concerns than diesel
fuel buses, but overall, there is no
evidence that CNG buses pose any greater risk of
fire or explosion than diesel buses. Natural gas
buses have on-board gas detectors and other
safety equipment specially designed to ensure
safe operation
CLEAN CITIES Is a partner to bring in Government
Reports to provide documentationof data for
OUR RE-POWERING Programs
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Report confirms that CNG Vehicles operate at less
than Diesel
FUEL Savings alone 25-40 better than Diesel
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LET US NOT FORGET !!! WHERE OIL PRICES WERE AND
ARE GOING BACK TOO !!!
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A New Direction for Alternative Fuels
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Natural gas for use in transport vehicles
currently costs 42 percent less than diesel fuel
(on an energy-equivalent basis and considering
only existing taxes), and with oil prices rising
at a significantly faster rate than U.S. natural
gas prices, the gap is projected to widen to 50
percent in 2035 in the AEO2010 Reference case
(Figure 21). Consequently, the payback period for
incremental vehicle costs becomes shorter when
natural gas trucks are used more
intensivelySource EIA Annual Energy Outlook
2010 with Projections to 2035 http//www.eia.doe.
gov/oiaf/aeo/natgas_fuel.html
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If we do nothing to start, OIL will still be the
energy source of flavor in 25 yrs from NOW
U.S. Energy Consumption by Fuel (1980-2035)
(quadrillion Btu)
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NGV School Buses are our GREATEST opportunity to
cleanup pupil transportation As our nations
school districts urgently look for ways to meet
budget constraints (given the high prices for
diesel and gasoline) and stricter emissions
regulations for heavy vehicles, administrators
have been looking more and more to CNG vehicles.
A natural gas-powered school bus can displace
1,400 gallons of diesel fuel per year. Source
U.S. Dept. of Energy CNG buses emit far
fewer pollutants, such as soot (PM) and nitrogen
dioxide (NOx), than older diesel engine buses
(model 2006 and earlier) and significantly less
NOx emissions than new diesel engine
buses.Source UCS report, School Bus Pollution
Report Card 2006 Grading the States, May
2006Currently, there are more than 2,500 CNG
buses in school districts across the country.
Mansfield, Texas, is one such district where
yellow buses have gone green. This is less than ½
of 1 of all School Buses in our Nation.
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it costs 80 a day in gasoline money to operate
a diesel bus on the district's far-flung routes,
compared to only 12 a day for a CNG bus.
Colton saved over 500,000 per year with just 48
buses
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Mansfield Schools, TX

• Yellow Buses Go Green
• District using 20 compressed natural gas school
  buses with plans for more
• L-R) MISD Transportation Director Charles Stone,
  Atmos Energy representatives, Walter Miller, CEM,
  and Steve Mohr pose for demo on CNG school bus
  fueling.

Each CNG bus replaces about 2000 gallons of
diesel use each year. Twenty buses at 2000
gallons per year equals 40,000 gallons times the
20 year life equals about 800,000 gallons not
imported, said Stone. Not much, but it is a
start.
Benefits MISD benefits from monetary savings in
using CNG buses in three areas fuel cost
differential reduced maintenance costs and
reduced refueling labor. The fuel cost
differential refers to the lower cost of
compressed natural gas as compared to the
continued rising cost of diesel. A reduction in
maintenance costs comes from the inherent
cleanliness of the engine process (particularly
soot) that will require less maintenance effort.
A longer oil life which reduces oil and filter
time/materials plus a simpler engine design than
the 2007 diesel engines should provide fewer
engine compartment issues.The Transportation
Department also looks forward to reduced
refueling labor. Refueling of CNG buses takes
place at the assigned parking space using the
time-fill stands instead of sitting in line
waiting to get through the fuel station. On a
busy day, we have vehicles and drivers waiting
for 10-20 minutes just to begin fueling,
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VALLEY Partners with Energy Companies Like DTE
Energy and others to fulfill the need to build
Re-Fueling Stations
CORPORATE SUPPLIER Clean Energy supplies
Natural Gas TO NGVs in USA Serves over 18000/day
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VALLEY Partners have solutions TODAY let us show
you HOW !
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CNG RePower VS OEM CNG NEW School Bus
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A FULLY INTEGRATED DriveTrain Provider
For Further information Contact Joel
Dalenberg Development Director Valley Integrated
Solutions VIS Vehicle Conversions Valley Truck
Parts Inc. 616-293-3401 jdalenberg_at_valleytruckpart
s.com