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The Future of Electric Vehicles.

POSC 395 Research Group.
by

Jake Jordan

on 9 December 2013

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Transcript of The Future of Electric Vehicles.

Current Policy and Market Analysis.
Bridging Company and Program.
Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program.
The Carl Moyer Program.
Public to the Private Sector.
Electric buses are
5 - 6
times more expensive.
The last 12 years: 150% increase in diesel prices + 38% increase in electricity rates =
$430,000
in savings.
Created and Funded by the Ports of LA and Long Beach. Known as CAAP, implemented 2006-2010.

Requires increasingly strict air emission requirements. Reduced PM 10/2.5 by 93% and 92% and NOX by 88% in Heavy Duty Vehicles.

Concessionaires and incentives available.

Successful model for future transfer to other ports.



Incentive Program, Map-21.
Recommendations
Proterra.
1) Integrate school bus routes with public bus routes, maximize use for a higher return on investment.
School bus funding + transit bus funding
Proposition 1B & Map-21 TAP.
2) Ensure that the purchase requirement goes into effect as soon as possible
3) Utilize all funds available and also give transit agencies confidence that funds will be there for their use

Future of Electric Buses
Divert from the current strategy of having multiple small demonstrations and consolidate these E.B into two Centers of Excellence.
Use Federal dollars through programs like Moving Ahead for Progress in the 21st Century Act (MAP-21).
Distribution of AB32 Cap and Trade funds.
Utilize AB118 monetary appropriations.
Carl Moyer Program: Pushing the Limits & Recommendations
I. Problem: CNG/LNG can't utilize Carl Moyer funding
a. Striking the Diesel Requirement would increase potential customers for EVI
II. Problem: CMP marketing strategy.
a. Centralized centers that educate truckers on financing options, California legislation and purchasing options.
III.Continue state audit reports that could pinpoint unused funding in local air districts
Zbus Rule Background
Trends in Carl Moyer Spending.
- Less retrofits and more vehicle replacements.
- 56 of 84 approved projects were truck replacements for BAAQMD in one year alone.
- BAAQMD reports indicate that applicants receive maximum funding or near maximum funding for vehicle replacement projects.

Public Relations Recommendations for Our Clients.
The Success of the Clean Air Action Plan.


Lack of Public and Private acceptance of E.B technology.
High cost of E.B is a major drawback.
The availability of future funding.
Will the money be there when it is needed?
Increase in Natural Gas production.


January 1, 2023.
Issues Relating To Increased Electric Bus Use.
EVI's Clients and the Investment Question.
-Owner Operators.
-Private Motor Companies (10+ Vehicle fleet).
- Return on Investment is derived from maintenance and operational costs.
- Such as regenerative braking savings, fuel savings, exhaust cleaning kit savings.
Similar Programs Have a Prominent Market Potential For EVI.
$105 billion dollar, 2-year bill.
Transportation Alternatives Program (TAP) $809 million in 2013,
Many ports are going to promote similar programs to the Clean Truck Program.
Over 1,000 different transportation companies have been granted Concessionaires.
Funding for the new trucks will be subsidized by the ports.
Leverages long term conversion costs VS short term continuous retrofitting.
Creates incentive for better Return on Investment.

Electric School Buses as a Viable Option.

Public school system has potential.
Proposition 1B & The Lower Emissions School Bus Program (LESBP).
Possible integration of school and transit buses.
Senator Lindsey Graham in Proterra’s EcoRide BE35 Transit Bus .
I.Who is Carl Moyer?
a. Dr. Carl Moyer aimed to unite business and government in the name of public interest to improve California Air Quality.
II. What does the program do?a.Specializes in providing funding for vehicle retrofitting and vehicle replacement.
III. Effectiveness
a. CMP has cleaned up over 24,000 engines over 12 years
HVIP.
Provides incentives to help reduce incremental cost of electric trucks by half.
Receives funding from several CA government sources.
CA Air Resources Board.
Senate Bill 359.
Additional funding provided by local air districts.
San Joaquin Valley Air Pollution Control District Plus-Up.
Fiscal Year 2013-14: Guaranteed $15M pot.
Donny Ahmad, Sergio Avelar, Katie Gregg
Samuel Hovig, Jake Jordan, Hayden Smith,

The Future of Electric Vehicles In California.
Increasing the Use of Electric Buses.

Program is designed to encourage the operation and use of zero-emission buses in California urban transit bus fleets.

Currently the main component of the Zbus rule, which is the purchasing requirement is on hold until at least 2014?

How does this affect Proterra and what can be done?



How much is 19,501 lbs worth?
A; $45,000
The Four P's of Marketing: Product, Price, Place, and Promotion
Everett Rogers, "Diffusion of Innovation"
Financial, social, and environmental elements
Recommendations:
Aggressive Social Media Marketing
Promote the uniqueness of these vehicles
Reliability must be used as a marketing tool
Advantageous use of auto icons like Leno are a plus
EVI.
1) Public Private Partnerships with Ports.
Incentives for Long Term Investment in EV trucks.
Concessionaire funding sourced by ports, provides higher Return on Investment.
Immediate market potential.
2) Allow CNG/LNG to upgrade through
Carl Moyer funding.
Create information centers.
Centralizes Marketing, Finance Information, and Purchasing Options.
EVI qualifies as an approved dealer that can apply for HVIP vouchers for fleets wanting to purchasing electric trucks.
May 2013: HVIP has provided vouchers for the purchase of 370 battery-electric zero-emission trucks and buses.
Current Problems:
Fleets hesitant to purchase electric trucks.
Competitively low cost of natural gas
HVIP funds exhausted.
Publish data for public access.
Data on HVIP purchases and electric truck performance
Increase voucher amounts for electric trucks.
Competition between hybrids and electric trucks
Seek funding from other CA programs/policies.
CA Cap & Trade funds allocated to HVIP
EVI or SCAQMD partner with Cap & Trade entity
3) Additional funding for HVIP.
CA Cap and Trade Funds.
EVI create partnership with cap and trade entity.
Stacked funding from air districts in CA.
Table Of Contents

1. HVIP Policy by Sergio Avelar.
2. Carl Moyer Policy by Hayden Smith.
3. Clean Air Action Plan by Jake Jordan.
4. Map 21 and Electric School Buses by Katie Gregg.
5. Zbus and the Future of Electric Buses by Sam Hovig
6. Public Relations by Donny Ahmad.
7. Recommendations to the clients.
End of Presentation.
Thank you.
Policy Recommendations for Electric Buses:
1. Ensure the purchase requirement goes into effect as soon as possible
2.Provide bus manufactures and transit agencies with all information regarding ability to access funds
3. Construct and implement P.R. that reassures the public/private worries of E.B technological capability.
Recommendation
For EVI
Formation of a Public-Private Partnership with the Ports.
Continuation and expansion of existing programs like the CAAP.
Reliable source of demand for retrofits and wholesale purchases.
Brand name recognition for EVI.
Reliability of EV powertrains and vehicles is critical for the stability of the partnership.
Leverages high capital cost of EVI's products two-fold.
Incentives and concessionaires promote EVI business.
Highlights the need for Licensed Motor Carriers to examine the feasibility of EVI's products.
Recommendation
Integrate school bus routes with public bus routes to maximize use, and receive a higher return on investment in the long term
More channels of funding available (LESBP and Map-21 TAP, for example) to offset cost of initial investment
Recommendations
Full transcript