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PREPARED FOR REPRESENTATIVE HENRY WAXMAN (CA), REPRESENTATIVE MIKE DOYLE (PA),
REPRESENTATIVE LEE TERRY (NE) & REPRESENTATIVE GARY MILLER (CA).




 The case for zero-emission
  technology in heavy-duty
          trucking
                                 A Cleantech Alliance of
                          Total Transportation Services, Inc. &
                             Vision Industries Corporation
                                              12/18/2011




This brief explains why deploying a fleet of zero-emission hydrogen fuel cell-powered trucks in the
nation’s largest deep-water ports, to move containerized cargo, to be the only viable solution that
solves: (a) the environmental concerns of poor air quality caused by diesel-powered trucks; (b) while
allowing the Port Systems to continue their economic relevance to the State in which they reside.
The Case For Zero-Emission Technology In Heavy-Duty Trucking


Table of Contents
I.       Executive Summary ............................................................................................................................... 3
II.      Port System Defined ............................................................................................................................. 5
      Stakeholders ............................................................................................................................................. 5
      Movement of Goods Defined ................................................................................................................... 6
      Trucking Defined ....................................................................................................................................... 6
      Drayage Defined ....................................................................................................................................... 7
      Diesel Engines Defined.............................................................................................................................. 8
      Hydrogen Fuel Cells Defined ..................................................................................................................... 8
III.         Problem Domain ............................................................................................................................. 10
      Diesel’s Negative Health Effects ............................................................................................................. 10
      Environmental Impact of a Port System ................................................................................................. 10
      Economic Importance of a Port to a State Government ........................................................................ 11
IV.          The Solution Domain: Technology that solves the dilemma .......................................................... 12
      The Hydrogen Fuel Cell/Electric Hybrid Truck Explained ........................................................................ 12
      Value proposition 1: Better Performance ............................................................................................... 13
      Value Proposition 2: Zero-Emissions ...................................................................................................... 13
      Value Proposition 3: No Noise ................................................................................................................ 13
      Value Proposition 4: Lower Lifetime Cost of Ownership ........................................................................ 14
      Value Proposition 5: Hydrogen Fuel Cells - A Portable Power Supply .................................................... 14
      Endorsements and Validation of Hydrogen Fuel Cell-Powered Trucks .................................................. 16
V.       The Recommendation ......................................................................................................................... 17
      The Environmental and Health Benefit................................................................................................... 17
      The Benefit of Promoting the Use of a Sustainable & Alternative Energy Source ................................. 17
      The Economic Benefit ............................................................................................................................. 18
      The Program Cost.................................................................................................................................... 19
      Recommended State for Implementation .............................................................................................. 20
VI.          Endorsed by .................................................................................................................................... 21
VII.         About the Parties ............................................................................................................................ 22
Bibliography ................................................................................................................................................ 23




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Figure 1: Commodity Flows - Truck (DOT 1998) ........................................................................................... 3
Figure 2: A Typical Port System..................................................................................................................... 5
Figure 3: Good Movement in a Typical Port (Woods, 2011) ........................................................................ 6
Figure 4: 4-Stroke Diesel Engine (Encyclopedia Britannica, 2011) ............................................................... 8
Figure 5: Hydrogen Fuel Cell ......................................................................................................................... 8
Figure 6: Air Quality Rankings (Methods, 1996) ......................................................................................... 11
Figure 7: Port-wide Emissions by Source (Starcrest Consulting Group, 2011) ........................................... 17
Figure 8: Hydrogen Pipeline Port of LA | Long Beach ................................................................................. 18
Figure 9: Counties with Monitors Violating Primary 8-hour Ground-level Standards                                                      (0.060 –
0.070 parts per million)............................................................................................................................... 20
Figure 10: Proposed Zero-Emission Gate -- Attractive Adoption Catalyst .................................................. 20




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


  I.     Executive Summary
At the turn of the century, the U.S. economy accounted for one-fourth (1/4) of the world’s gross
domestic product, including $4 trillion of import and export activity. The bulk of goods, enter the
country as containerized cargo at major ports of entry.

According to a U.S. Department of Transportation report, the bulk of the goods enters the United States
from the West Coast and is dispersed nationally through major trucking arteries.

Figure 1: Commodity Flows - Truck (DOT 1998)




In the United States, the largest and busiest deep-water ports are the twin Ports of Los Angeles and Long
Beach, which accounts for over $306 billion of commercial cargo, 40% of the nation’s goods movement.
To move this cargo are over 16,000 heavy-duty diesel-powered trucks performing drayage service in and
around the port systems.

Unfortunately, the price of this industrial production and global trade has been toxic emissions from
diesel truck exhaust -- the leading cause of respiratory and cancer causing illnesses in the trade
corridors.

Due to its economic relevance, contributing over billions of dollars in State and Local Taxes, a State, like
California, faces the dilemma of how to allow the port system to continue expanding (in order to
generate higher revenues) while complying with federal, state and local mandates to reduce harmful
emissions.

The solution brought before this Congressional Subcommittee is Hydrogen fuel cell-powered trucks, for
the following reasons:

    1. Hydrogen fuel cell-powered trucks are already being tested at the Port of Long Beach.
    2. Hydrogen is in abundant supply at major port areas.
    3. Hydrogen as a fuel, promotes the use of an alternative and sustainable energy source.
                                                                                                               3
The Case For Zero-Emission Technology In Heavy-Duty Trucking


    4. Hydrogen fuel cell-powered trucks outperform a conventional diesel in terms of horsepower
       and torque.
    5. Hydrogen as a fuel is half (1/2) the price of diesel, if piped-in from a nearby gas or oil refinery – a
       common occurrence at deep-water ports.
    6. Most importantly, they emit zero-emissions.

The Cleantech Alliance of Total Transportation Systems, Inc. and Vision Industries Corporation is
requesting funding assistance for one hundred Class 8 Hydrogen fuel cell / electric hybrid trucks and a
fueling station to service the fleet.

While the initial deployment of this program is Southern California, the relevance of the cleantech
solution can be easily deployed to other national ports of entry where hydrogen is readily available, such
as Houston, Oakland, Seattle, NY|NJ and Savannah GA.

This brief has the full support of fellow members of Congress, State Assemblymembers, the Mayors of
Los Angeles and Long Beach, Environmental Groups and other interested stakeholders.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


 II.     Port System Defined
In order to understand the complexity of the port problem, we must first understand the underpinnings
of goods movement as it relates to the port system, truck categorization, the characteristics of drayage
service, and the technology of propulsion and power supply choices.

Stakeholders
The key stakeholders within a port system:

    1.   Port Authorities
    2.   Licensed Motor Carriers (trucking fleet operators)
    3.   Trade Corridors
    4.   Communities in the trade corridors




                                                          Trade Corridor
                                                                   Trade Corridor


                 Port Authorities



Figure 2: A Typical Port System

A typical port system has ships entering terminals to load or unload containerized cargo to licensed
motor carriers, who then take these goods to intermodal facilities and warehouses for national
distribution. The transportation workhorse at these port systems have been diesel-powered trucks, who
move these containers on a 24/7 basis.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Movement of Goods Defined
In a typical port setting, the movement of containerized cargo comes in three categories:

    1. Direct— Ship to truck to a local warehouse (or distribution center).
    2. Transloaded – Ship to truck to warehouse for repackaging.
    3. Intermodal – Ship to truck to a rail yard.



Figure 3: Good Movement in a Typical Port (Woods, 2011)




                                                                         2

                                                  3




                                                                   1



At a major port system, a typical truck driver spends a majority of their time waiting to load or unload
their cargo. Over 70% of their duty cycle is in idle mode. Unfortunately, a diesel engine does not stop
emitting harmful particulates while a driver waits in line. Depending on the shipping terminal, it can
take up to one (1) hour to pick-up a single container.


Trucking Defined
Trucks are defined by their combined gross vehicle weight rating (CGVWR1). In the movement of
containerized cargo are performed by Class 8 vehicles, CGVWR of 80,000 lbs. In its simplest form, Class
8 trucks can be further broken-down into propulsion systems (motor type) and power sources that
deploy cleantech (non-cleantech) components.

1
 Gross Combination Vehicle Weight Rating (GCVWR) – the maximum allowable combined weight of the tow
vehicle and the attached cargo container.
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The Case For Zero-Emission Technology In Heavy-Duty Trucking


In 2011, cleantech solutions are available in both the make-up and configuration of the propulsion
(motor type) and power source.

Table 1: Power Supply & Motor Choices in Trucking

Environmental          Power Supply             Propulsion (motor)              Chassis
Factor
Not Cleantech          Diesel Fuel              Internal Combustion
Cleantech              Batteries                Electric
Cleantech              Liquid Natural Gas
Cleantech              Hydrogen Fuel Cell




The selection of the propulsion system and power source has everything to do with duty-cycle:

        Distance traveled
        Payload
        Route
        Idling time
        Fuel availability
        Fuel prices
        Emission standards
        Returning to a central hub

Drayage Defined
In the case of drayage service, the movement of containerized cargo is over short distances, usually
from the Port to a rail yard and back.

Table 2: Drayage Characteristics

Distance traveled:                 < 50 miles
Payload:                           ~60,000 lbs.
Route:                             Port to Rail Yard
Idling time:                       75% of duty-cycle
Fuel availability:                 Diesel (abundant)
Returning to a central hub:        every day




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Diesel Engines Defined
A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition of
a fuel mixture injected into the combustion chamber. Once the fuel has been ignited and a power
stroke has happened, emissions are expelled from the chamber. The expelled gases are carbon
monoxide, NOx and unburned hydrocarbon (HC).
Figure 4: 4-Stroke Diesel Engine (Encyclopedia Britannica, 2011)


                                                                                                      Toxic Exhaust
                                                                                                      NOx
                                                                                                      CO

                                                                                                      unburned
                                                                                                      hydrocarbons




An air/fuel mixture drawn        Air/fuel mixture         Heat compression    Exhaust valve opened.      Expelled
       into cylinder               compressed              ignites mixture.      Gases expelled.          gasses
                                                                Power.

Hydrogen Fuel Cells Defined
On the other hand, fuel cells convert chemical energy in hydrogen to electricity. Pure
water and potentially useful heats are the only byproducts. (Program, 2006)

Figure 5: Hydrogen Fuel Cell




                                                                                       Byproduct




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The Case For Zero-Emission Technology In Heavy-Duty Trucking




1. Hydrogen fuel is fed into the anode of the fuel cell. Helped by a catalyst, hydrogen molecules
   (H2) are split into electrons and protons.
2. Electrons are channeled through a circuit to produce electricity.
3. Protons pass through the polymer electrolyte membrane.
4. Oxygen (from the air) enters the cathode and combines with the electrons and protons to form
   water.
5. Water vapor and heat are released as byproducts of the reaction.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


III.      Problem Domain
States with relevant deep-water ports face the problem of allowing a major source of revenue to
continue operations in the face of numerous legal entanglements with environmental groups and
communities in the trade corridors.

Simply put, diesel exhaust has been proven to have direct relationship to a person’s chances of
metastasizing respiratory and/or cardiovascular illnesses.

On the other side of the ledger, a State and local governments receives billions of dollars in tax revenue
from the port system. The ports also provide millions of jobs in a region.



Diesel’s Negative Health Effects
In 1998, California identified diesel exhaust particulate matter (PM) as a toxic air contaminant based on
its potential to cause cancer, premature death, and other health problems. Diesel engines also
contribute to California's fine particulate matter (PM 2.5) air quality problems. Those most vulnerable
are children whose lungs are still developing and the elderly who may have other serious health
problems (Board C. A., 2010).

Diesel exhaust contains more than 40 toxic air contaminants. The California Air Resource Board
estimates that about 70% of the cancer risk that the average Californian faces from breathing toxic air
pollutants stems from diesel exhaust particles. (California, 2001)

Table 3: Health Effects Associated with Goods Movement in CA - 2005 (Angeles, 2011)

       Health Outcomes                                                                Cases Per Year
       Premature Death                                                                2,400
       Hospital Admissions (Respiratory Causes)                                       2,000
       Hospital Admissions (Cardiovascular Causes)                                    830
       Asthma and Other Lower Respiratory Symptoms                                    62,000
       Acute Bronchitis                                                               5,100
       Work Loss Days                                                                 360,000
       Minor Restricted Activity Days                                                 3,900,000
       School Absence Days                                                            1,100,000


Environmental Impact of a Port System
Because this movement of cargo is usually over pre-defined routes, on a repeated basis, municipalities
within these routes suffer from some of the worst air quality in the United States.

Residences along these trade corridors are exposed to diesel exhaust and other vehicle emissions, noise
from truck-congested roads, bright lights from round-the-clock operations, and other potential health
threats.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


It is not without coincidence, that the regions around the top-7 ports in the United States happen to
have the worst Air Quality Rankings in the nation.

Figure 6: Air Quality Rankings (Methods, 1996)




Economic Importance of a Port to a State Government
Despite its environmental and health drawback, deep-water port systems are usually a major source of
tax revenues and jobs for the state and local governments in which they reside.

Case in point, in a March 2007 national economic impact study by the twin ports of Los Angeles | Long
Beach, reported that imports coming in through the complex generated jobs, income and tax revenues
in every state in the nation. (Hricko, 2008)

Table 4 - Growth in the National Impact of Trade, 1194-2005, For Goods Using Southern California's Trade Infrastructure Network


                                   1994                               2000                                2005
Total Trade                        $74 billion                        $196 billion                        $256 billion
State and Local Taxes              $6.0 billion                       $16.4 billion                       $28.1 billion
Jobs (Full-time Equivalents)       1.1 million                        2.0 million                         3.3 million




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


IV.      The Solution Domain: Technology that solves the dilemma
In a study commissioned by the twin Port of Los Angeles and Long Beach, a zero-emission solution was
the only way that the ports will be allowed to expand its routes into new and current municipalities.

In 2011, a solution was found. Through the public-private partnership between the U.S. Department of
Energy, the twin Port of Los Angeles | Long Beach and Vision Industries Corporation, came the 1st Class 8
zero-emission big-rig Hydrogen Fuel Cell / Electric Hybrid vehicle, the Tyrano™.

In its simplest form, the hybrid vehicle runs on an electric motor powered by Lithium-ion batteries and
Hydrogen fuel cells. The Tyrano is currently undergoing drayage testing at the Port of Long Beach by a
national trucking fleet operator, Total Transportation Services, Inc. (TTSI).



The Hydrogen Fuel Cell/Electric Hybrid Truck Explained
Vision Industries Corporation is headquartered in El Segundo, California. Vision provides a proprietary
hydrogen/electric hybrid drive system that out-performs a conventional diesel truck.

The Tyrano has:

    1.   Superior power (536 HP and 3,300 lbs./ft. of torque) with the;
    2.   Extended range provided by a hydrogen fuel cell, at a;
    3.   Lower cost per mile, and with a;
    4.   Zero-emission footprint!




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


The heart of the hybrid hydrogen/electric truck is the software running the electronic control unit
(ECU). The ECU controls all the sensors and control boxes running the:

       Electric Motor (converts electrical energy to mechanical energy).
       Battery Pack (giving power to the electric motor).
       Hydrogen Fuel Cell (recharges the batteries).

Compared to a conventional diesel truck, the Vision Tyrano, has better performance (torque and
horsepower), a lower cost of ownership and does so with a zero-emission footprint. It’s also extremely
quiet.

Value proposition 1: Better Performance
                           2010 Diesel                LNG                      Hydrogen FC Class 8 Truck
Horsepower                 450 peak                   320 peak                              536 peak
Torque (foot/lbs.)         1,350 peak                 1,000 peak                            3,300 peak
Fuel                       10,000 Gal.                16,700 Gal.                            6,765 lbs.


Value Proposition 2: Zero-Emissions
                           2010 Diesel                LNG                      Hydrogen FC Class 8 Truck
Particulates               12.37 lbs.                 4.6 lbs.                        Zero Emission
NMHC/MHC                   173 lbs.                   66.5 lbs.                       Zero Emission
NOx                        1,485 lbs.                 570 lbs.                        Zero Emission
CO2                        217,800 lbs.               142,145 lbs.                    Zero Emission


Value Proposition 3: No Noise
                           2010 Diesel                LNG                      Hydrogen FC Class 8 Truck
Noise Pollution            Yes                        Yes                                         No




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Value Proposition 4: Lower Lifetime Cost of Ownership
                                                                   Traditional       Vision's
Vehicle Metrics                                                      Diesel        Class 8 Truck     Savings
Initial Vehicle Cost                                                  140,000           270,000      (130,000)
Tax Credit for New Qualified Alt. Motor Vehicles                              -         (40,000)       40,000
Initial Net Vehicle Cost                                               140,000         230,000        (90,000)



Service Life Fueling Costs                                            $606,365         $229,412     $376,953
Service Life Maintenance Costs                                         $25,600            20000        $5,600
Salvage Value                                                          (20,000)         (20,000)          -
Total Ownership Cost                                                  $751,965         $359,412       292,553



Assumptions
Vehicle Service Life (years)                                                  8                 8
Miles/Year                                                             78,000            78,000
Fuel Cost (per gallon of diesel or $/lbs. of H2)                         $4.47             $2.50
MPG or MPP(H2) (50/50 duty cycle)                                           4.6               6.8
Maintenance Cost/Year                                                   $3,200            $2,500



Value Proposition 5: Hydrogen Fuel Cells - A Portable Power Supply
A hydrogen fuel cell-powered truck has an electric motor powered by Lithium-ion batteries. The
batteries are constantly charged by a fuel cell that converts hydrogen gas into electricity. The batteries
can also benefit from the use of Regenerative Braking to incrementally add charge.

In a hybrid hydrogen / electric vehicle, the batteries can be charged in four (4) scenarios:


                                                             In the driving mode, the fuel cells could be
                                                             programmed to either:

                                                                 1. Recharge the batteries if its state-of-
                                                                    charge (SOC) was getting low, and/or;

                                                                 2. Directly assist in powering the electric
                                                                    motor.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


           In a braking situation, an electric vehicle can
           be configured to take advantage of
           Regenerative Braking, in which the vehicles
           mechanical energy – during braking -- is
           harvested and re-routed to charge the battery.




          While the hydrogen / electric vehicle is parked,
          the fuel cell can be triggered to begin charging
          the batteries if its state-of-charge was low.

          In a typical port scenario, where the majority
          of a truck driver’s time is spent in a stop-and-
          go or queuing mode, the batteries would have
          ample time to regain full-charge before out-
          bound service is resumed.




           At the end of a duty-cycle, the owner-
           operator or fleet operator has the option to
           plug-in the vehicle into a power source to
           recharge the batteries for the next shift.

           The fuel cell can also be programmed to assist
           in charging if the vehicle were to be used in a
           24/7 scenario.




                                                          15
The Case For Zero-Emission Technology In Heavy-Duty Trucking


Endorsements and Validation of Hydrogen Fuel Cell-Powered Trucks


                   In 2010, the U.S. Department of Energy classified                   Federal
                   Vision’s Class 8 Truck and Terminal Tractor as                      Government
                   “Advanced & Alternative Vehicles.”



                   In 2010, the Port of Los Angeles and the Port of Long
                   Beach separately awarded Vision Industries with a                   State Port
                   contract to deliver a Class 8 heavy-duty truck for                  Authority
                   demonstration and testing in revenue services.




                   On July 18, 2011, Total Transportation Services, Inc.
                   presented Vision Industries with a Letter of Intent to              National
                   purchase one hundred Class 8 Hydrogen Fuel Cell /                   Trucking Fleet
                   Electric Hybrid trucks, with the option to purchase an              Operator
                   additional 300 units.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


 V.         The Recommendation
The Cleantech Alliance of TTSI and Vision Industries is asking this Congressional Subcommittee for
funding assistance for the purchase and manufacturing of:

      1. One hundred Class 8 Hydrogen Fuel Cell-Powered Trucks, and for the;
      2. Construction of an on-site Hydrogen Fuel Station to service the fleet.



The Environmental and Health Benefit
If 100 diesel trucks were replaced with 100 Hydrogen Fuel Cell / Electric Hybrid trucks at the Ports of Los
Angeles | Long Beach, the effect would be equivalent to removing the following pounds of toxins and
diesel particulates from the air on a yearly basis:

Figure 7: Port-wide Emissions by Source (Starcrest Consulting Group, 2011)

                                          Diesel PM           NOx            SOx         CO         HC
a) Emissions / Yr
    Heavy-Duty Vehicles (tons)                  28          1,523           4           352         71
    Heavy-Duty Vehicles (lbs)               56,000      3,046,000       8,000       704,000    142,000
    (2000 lbs / ton)


    Total South Coast Air Basin (tons)         271          8,216       1,339          1,936       452
    Total South Coast Air Basin (lbs)      542,000     16,432,000   2,678,000      3,872,000   904,000
    Percentage                                 10%            19%        0.3%            18%       16%


b) Drayage Trucks Ports (2011)              16,000         16,000     16,000         16,000     16,000
   Emissions (tons) / Yr / Diesel           0.0018         0.0952     0.0003         0.0220     0.0044
   Emissions (lbs) / Yr / Diesel               3.50        190.38        0.50         44.00        8.88

c) 100 H2 FC Trucks
    Emission Revomed (tons) / Yr              0.18           9.52        0.03          2.20       0.44
    Emission Revomed (lbs) / Yr               350          19,038          50         4,400       888




The Benefit of Promoting the Use of a Sustainable & Alternative Energy Source
In today’s energy supply system, electricity, gasoline, diesel fuel and natural gas are made from the
conversion of a primary energy source, such as coal, petroleum or underground methane into a
deliverable form of energy.

Hydrogen on the other hand can be made from a variety of energy feedstock using the resources and
processes that are most economical preferred. (Authority, 2004) The most prevailing way to produce
Hydrogen is steam reforming. Steam reforming is a 70% efficient process that coverts methane (and
other natural gases) into hydrogen and carbon monoxide with the introduction of steam and a nickel
catalyst.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Figure 8: Hydrogen Pipeline Port of LA | Long Beach

                                                       Hydrogen is in abundant supply near most Ports.

                                                       In the State of California, there is a 17-mile underground
                                                       pipeline built by Air Products & Chemicals (NYSE: ADP).

                                                       The Air Products & Chemicals’ Wilmington plant, which
                                                       supplies Hydrogen to the eight (8) oil refineries within
                                                       close proximity, has the capacity to produce over 800,000
                                                       lbs. of Hydrogen per day.

                                                       The combined eight (8) oil refineries consume 400,000
                                                       lbs. per day, which leaves 400,000 lbs. that can be used to
                                                       refuel 20,000 Hydrogen FC powered trucks.




The Economic Benefit
Based on fueling cost alone, one hundred Hydrogen Fuel Cell-Powered Trucks can save a trucking fleet
operator an estimated $37,695,345, over an 8 year period compared to conventional diesel trucks.

                                                      Traditional    H2 Fuel Cell /    Single Unit     100 Unit
                                                        Diesel       Hybrid Electric     Savings       Savings

Service Life Fueling Cost                                        8                 8
Miles/Year                                                 78,000            78,000
Fuel Cost (per gallon diesel, lbs. of H2)                    $4.47             $2.50
MPG or MPP (H2) (50/50 duty cycle)                             4.6               6.8

Gallons/Year | lbs./Year                                  16,957            11,471
Fuel Cost / Year                                          $75,796           $28,676        $47,119     $4,711,918
Fuel Cost Over 8 Years                                   $606,365          $229,412       $376,953    $37,695,345




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


The Program Cost
Table 5: Itemization of Program Cost

Itemization of Program Cost                             Rate        Units Amounts       100-unit Amount ($)
Class 8 Zero-emission Truck Cost                 $       270,000           1           $         27,000,000

      Direct Labor Cost / Truck ⃰
         Assemblers (Rate/Hr) x 2                $          17.00         144          $              489,600
         Fabricators (Rate/Hr) x 2               $          17.00         144          $              489,600
         Engineering (Rate/Hr) x 2               $          50.00         144          $            1,440,000

      Program Administration Cost                                                      $               50,000

      Total Truck Cost                                                                 $           29,469,200
      ⃰ Build Cycle: 9-days per truck (8-hr work day)


Itemization of Program Cost                             Rate        Units Amounts          Station Amount ($)
Hydrogen Fueling Station
   Site Preparation                              $      2,700,000           1          $            2,700,000
   Storage                                       $        500,000           1          $              500,000
   Dispenser                                     $        400,000           1          $              400,000
   Canopy                                        $        450,000           1          $              450,000

    Backup Reformers (500 kg)                    $      2,500,000           1          $            2,500,000
    Product Compressor                           $        500,000           1          $              500,000

Total Fueling Station Cost                                                             $            7,050,000


Total Funds Requested                                                                  $           36,519,200




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


Recommended State for Implementation
Based on dangerous ozone levels, the economic significance of the twin Ports of Los Angeles and Long
Beach ($306B in commercial cargo), and current hydrogen infrastructure in-place, we are suggesting
that this program start in the State of California.

California has the greatest number of counties who violate the 0.070 ppm standards. (Agency U. S.,
2008)

Figure 9: Counties with Monitors Violating Primary 8-hour Ground-level Standards (0.060 – 0.070 parts per million)




On a national scale, California has led the way in cleantech adoption and innovation. They may also
have come up with an attractive and viable zero-emission adoption catalyst, a zero-emission gate. In an
October 2011 meeting, the Los Angeles Board of Harbor Commissioners expressed their support for the
creation of a zero-emission gate at the Twin Ports of Los Angeles and Long Beach.

Figure 10: Proposed Zero-Emission Gate -- Attractive Adoption Catalyst




The proposed zero-emission gate will allow zero-emission vehicles faster and preferred access to the
extremely over-crowded Port’s terminals, thus enabling zero-emission truck operators to double their
load transportation during the day.


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The Case For Zero-Emission Technology In Heavy-Duty Trucking


VI.     Endorsed by
In a separate communique, we will provide letters of support for this zero-emission solution from fellow
members of Congress, State Assemblymembers, the Mayors of Long Beach and Los Angeles,
Environmental Groups and other interested stakeholders.



On behalf of Total Transportation Services, Inc. and Vision Industries Corporation, we thank you for your
time and consideration.




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The Case For Zero-Emission Technology In Heavy-Duty Trucking


VII.    About the Parties

Total Transportation Services, Inc. (“TTSI”), based in Los Angeles,      Headquarters:
CA, is a leading national provider of port drayage and related           18735 South Ferris Place
trucking and logistics services in the United States.                    Rancho Dominguez, CA 90220
                                                                         (O) 310-816-0260
        ‒   Provides construction support, long-haul truckload           (F) 310-984-3195
            brokerage and value-added warehousing services.              www.tts-i.com
        ‒   Operations in many of the ports across the country
            including: Long Beach, Los Angeles, San Diego and
            Stockton in California and Savannah, GA and Norfolk,
            VA.
        ‒   Fifth largest provider of drayage services in the twin
            ports of Long Beach and Los Angeles, which service
            over 65% of the containers entering the United States
        ‒   First company to place into service a clean fleet in the
            Ports of Long Beach, Los Angeles, and San Diego.



Vision Industries Corporation (OTCBB: VIIC), based in El Segundo,        Headquarters:
CA, is a developer of zero-emission hydrogen fuel cell / electric        120 Eucalyptus Drive
hybrid vehicles and turnkey hydrogen fueling systems. Vision’s           El Segundo, CA 90245
proprietary hybrid drive system combines the superior                    (O) 310-450-0299
acceleration of a battery-powered electric vehicle with the              (F) 310-450-0202
extended range provided by a hydrogen fuel cell.                         www.VisionIndustriesCorp.com




                                                                                                         22
The Case For Zero-Emission Technology In Heavy-Duty Trucking


Bibliography
Agency, U. S. (2008). Counties With Monitors Violating Primary 8-hour Ground-level Ozone Standards.
       Retrieved December 2011, from United States Environmental Protection Agency:
       http://www.epa.gov/airquality/ozonepollution/pdfs/20100104maps.pdf

Agency, U. S. (2008). Ground-level Ozone Standards Designations. Retrieved December 16, 2011, from
       United State Environmental Protection Agency: http://www.epa.gov/ozonedesignations/

Angeles, P. f.-L. (2011). Health Impacts of Air Pollution Associated With Goods Movement. Retrieved
       December 14, 2011, from Physicians for Social Responsibility-Los Angeles : http://www.psr-
       la.org/issues/environmental-health/air-pollution-and-goods-movement/

Associates, B. (2007). Trade Impact Study. Bothell, WA: BST Associates.

Authority, N. Y. (2004). Hydrogen Fact Sheet: Hydrogen Production - Steam Methane Reforming (SMR).
        Albany, NY: New York State Engergy Research and Development Authority.

Board, C. A. (2006). Emission Reduciton Plan for Ports and Goods Movement in California. Sacramento,
        CA: California Air Resources Board.

Board, C. A. (2010, January 25). Diesel Programs and Activities . Retrieved December 13, 2011, from
        California Environmental Protection Agency Air Resources Board:
        http://arb.ca.gov./diesel/diesel.htm

California, C. O. (2001). Health Effects of Diesel Exhaust. Sacramento, CA: CARB Office of Environmental
        Health Harzard Assessment and the American Lung Association of California.

Encyclopedia Britannica, I. (2011). Diesel Engine. Retrieved December 13, 2011, from Encyclopedia
       Britannica eb.com: http://www.britannica.com/EBchecked/topic/162716/diesel-engine

Hricko, A. (2008, February). Global Trade Comes Home, Community Impacts of Goods Movement.
        Environmental Health Perspectives, 116(2), 79--81.

Methods, C. (1996). AirGrades. Retrieved December 15, 2011, from US Air Quality Gradebook:
      http://www.creativemethods.com/airquality/maps/united_states.htm

Program, U. D. (2006). Hydrogen Fuel Cells. Washington D.C.: U.S. Department of Energy.

Starcrest Consulting Group, L. (2011). Port of Los Angeles Inventory of Air Emissions - 2010. Los Angeles,
        CA: Port of Los Angeles.

Woods, J. R. (2011). Frieght & Livability - The GCCOG's I-710 Freight Corridor Experience: A Path Forward.
       Gateway Cities, CA: Gateway Cities Council of Government.




                                                                                                         23

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Congressional Brief: Case for zero emission technology in heavy duty trucking

  • 1. PREPARED FOR REPRESENTATIVE HENRY WAXMAN (CA), REPRESENTATIVE MIKE DOYLE (PA), REPRESENTATIVE LEE TERRY (NE) & REPRESENTATIVE GARY MILLER (CA). The case for zero-emission technology in heavy-duty trucking A Cleantech Alliance of Total Transportation Services, Inc. & Vision Industries Corporation 12/18/2011 This brief explains why deploying a fleet of zero-emission hydrogen fuel cell-powered trucks in the nation’s largest deep-water ports, to move containerized cargo, to be the only viable solution that solves: (a) the environmental concerns of poor air quality caused by diesel-powered trucks; (b) while allowing the Port Systems to continue their economic relevance to the State in which they reside.
  • 2. The Case For Zero-Emission Technology In Heavy-Duty Trucking Table of Contents I. Executive Summary ............................................................................................................................... 3 II. Port System Defined ............................................................................................................................. 5 Stakeholders ............................................................................................................................................. 5 Movement of Goods Defined ................................................................................................................... 6 Trucking Defined ....................................................................................................................................... 6 Drayage Defined ....................................................................................................................................... 7 Diesel Engines Defined.............................................................................................................................. 8 Hydrogen Fuel Cells Defined ..................................................................................................................... 8 III. Problem Domain ............................................................................................................................. 10 Diesel’s Negative Health Effects ............................................................................................................. 10 Environmental Impact of a Port System ................................................................................................. 10 Economic Importance of a Port to a State Government ........................................................................ 11 IV. The Solution Domain: Technology that solves the dilemma .......................................................... 12 The Hydrogen Fuel Cell/Electric Hybrid Truck Explained ........................................................................ 12 Value proposition 1: Better Performance ............................................................................................... 13 Value Proposition 2: Zero-Emissions ...................................................................................................... 13 Value Proposition 3: No Noise ................................................................................................................ 13 Value Proposition 4: Lower Lifetime Cost of Ownership ........................................................................ 14 Value Proposition 5: Hydrogen Fuel Cells - A Portable Power Supply .................................................... 14 Endorsements and Validation of Hydrogen Fuel Cell-Powered Trucks .................................................. 16 V. The Recommendation ......................................................................................................................... 17 The Environmental and Health Benefit................................................................................................... 17 The Benefit of Promoting the Use of a Sustainable & Alternative Energy Source ................................. 17 The Economic Benefit ............................................................................................................................. 18 The Program Cost.................................................................................................................................... 19 Recommended State for Implementation .............................................................................................. 20 VI. Endorsed by .................................................................................................................................... 21 VII. About the Parties ............................................................................................................................ 22 Bibliography ................................................................................................................................................ 23 1
  • 3. The Case For Zero-Emission Technology In Heavy-Duty Trucking Figure 1: Commodity Flows - Truck (DOT 1998) ........................................................................................... 3 Figure 2: A Typical Port System..................................................................................................................... 5 Figure 3: Good Movement in a Typical Port (Woods, 2011) ........................................................................ 6 Figure 4: 4-Stroke Diesel Engine (Encyclopedia Britannica, 2011) ............................................................... 8 Figure 5: Hydrogen Fuel Cell ......................................................................................................................... 8 Figure 6: Air Quality Rankings (Methods, 1996) ......................................................................................... 11 Figure 7: Port-wide Emissions by Source (Starcrest Consulting Group, 2011) ........................................... 17 Figure 8: Hydrogen Pipeline Port of LA | Long Beach ................................................................................. 18 Figure 9: Counties with Monitors Violating Primary 8-hour Ground-level Standards (0.060 – 0.070 parts per million)............................................................................................................................... 20 Figure 10: Proposed Zero-Emission Gate -- Attractive Adoption Catalyst .................................................. 20 2
  • 4. The Case For Zero-Emission Technology In Heavy-Duty Trucking I. Executive Summary At the turn of the century, the U.S. economy accounted for one-fourth (1/4) of the world’s gross domestic product, including $4 trillion of import and export activity. The bulk of goods, enter the country as containerized cargo at major ports of entry. According to a U.S. Department of Transportation report, the bulk of the goods enters the United States from the West Coast and is dispersed nationally through major trucking arteries. Figure 1: Commodity Flows - Truck (DOT 1998) In the United States, the largest and busiest deep-water ports are the twin Ports of Los Angeles and Long Beach, which accounts for over $306 billion of commercial cargo, 40% of the nation’s goods movement. To move this cargo are over 16,000 heavy-duty diesel-powered trucks performing drayage service in and around the port systems. Unfortunately, the price of this industrial production and global trade has been toxic emissions from diesel truck exhaust -- the leading cause of respiratory and cancer causing illnesses in the trade corridors. Due to its economic relevance, contributing over billions of dollars in State and Local Taxes, a State, like California, faces the dilemma of how to allow the port system to continue expanding (in order to generate higher revenues) while complying with federal, state and local mandates to reduce harmful emissions. The solution brought before this Congressional Subcommittee is Hydrogen fuel cell-powered trucks, for the following reasons: 1. Hydrogen fuel cell-powered trucks are already being tested at the Port of Long Beach. 2. Hydrogen is in abundant supply at major port areas. 3. Hydrogen as a fuel, promotes the use of an alternative and sustainable energy source. 3
  • 5. The Case For Zero-Emission Technology In Heavy-Duty Trucking 4. Hydrogen fuel cell-powered trucks outperform a conventional diesel in terms of horsepower and torque. 5. Hydrogen as a fuel is half (1/2) the price of diesel, if piped-in from a nearby gas or oil refinery – a common occurrence at deep-water ports. 6. Most importantly, they emit zero-emissions. The Cleantech Alliance of Total Transportation Systems, Inc. and Vision Industries Corporation is requesting funding assistance for one hundred Class 8 Hydrogen fuel cell / electric hybrid trucks and a fueling station to service the fleet. While the initial deployment of this program is Southern California, the relevance of the cleantech solution can be easily deployed to other national ports of entry where hydrogen is readily available, such as Houston, Oakland, Seattle, NY|NJ and Savannah GA. This brief has the full support of fellow members of Congress, State Assemblymembers, the Mayors of Los Angeles and Long Beach, Environmental Groups and other interested stakeholders. 4
  • 6. The Case For Zero-Emission Technology In Heavy-Duty Trucking II. Port System Defined In order to understand the complexity of the port problem, we must first understand the underpinnings of goods movement as it relates to the port system, truck categorization, the characteristics of drayage service, and the technology of propulsion and power supply choices. Stakeholders The key stakeholders within a port system: 1. Port Authorities 2. Licensed Motor Carriers (trucking fleet operators) 3. Trade Corridors 4. Communities in the trade corridors Trade Corridor Trade Corridor Port Authorities Figure 2: A Typical Port System A typical port system has ships entering terminals to load or unload containerized cargo to licensed motor carriers, who then take these goods to intermodal facilities and warehouses for national distribution. The transportation workhorse at these port systems have been diesel-powered trucks, who move these containers on a 24/7 basis. 5
  • 7. The Case For Zero-Emission Technology In Heavy-Duty Trucking Movement of Goods Defined In a typical port setting, the movement of containerized cargo comes in three categories: 1. Direct— Ship to truck to a local warehouse (or distribution center). 2. Transloaded – Ship to truck to warehouse for repackaging. 3. Intermodal – Ship to truck to a rail yard. Figure 3: Good Movement in a Typical Port (Woods, 2011) 2 3 1 At a major port system, a typical truck driver spends a majority of their time waiting to load or unload their cargo. Over 70% of their duty cycle is in idle mode. Unfortunately, a diesel engine does not stop emitting harmful particulates while a driver waits in line. Depending on the shipping terminal, it can take up to one (1) hour to pick-up a single container. Trucking Defined Trucks are defined by their combined gross vehicle weight rating (CGVWR1). In the movement of containerized cargo are performed by Class 8 vehicles, CGVWR of 80,000 lbs. In its simplest form, Class 8 trucks can be further broken-down into propulsion systems (motor type) and power sources that deploy cleantech (non-cleantech) components. 1 Gross Combination Vehicle Weight Rating (GCVWR) – the maximum allowable combined weight of the tow vehicle and the attached cargo container. 6
  • 8. The Case For Zero-Emission Technology In Heavy-Duty Trucking In 2011, cleantech solutions are available in both the make-up and configuration of the propulsion (motor type) and power source. Table 1: Power Supply & Motor Choices in Trucking Environmental Power Supply Propulsion (motor) Chassis Factor Not Cleantech Diesel Fuel Internal Combustion Cleantech Batteries Electric Cleantech Liquid Natural Gas Cleantech Hydrogen Fuel Cell The selection of the propulsion system and power source has everything to do with duty-cycle:  Distance traveled  Payload  Route  Idling time  Fuel availability  Fuel prices  Emission standards  Returning to a central hub Drayage Defined In the case of drayage service, the movement of containerized cargo is over short distances, usually from the Port to a rail yard and back. Table 2: Drayage Characteristics Distance traveled: < 50 miles Payload: ~60,000 lbs. Route: Port to Rail Yard Idling time: 75% of duty-cycle Fuel availability: Diesel (abundant) Returning to a central hub: every day 7
  • 9. The Case For Zero-Emission Technology In Heavy-Duty Trucking Diesel Engines Defined A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition of a fuel mixture injected into the combustion chamber. Once the fuel has been ignited and a power stroke has happened, emissions are expelled from the chamber. The expelled gases are carbon monoxide, NOx and unburned hydrocarbon (HC). Figure 4: 4-Stroke Diesel Engine (Encyclopedia Britannica, 2011) Toxic Exhaust NOx CO unburned hydrocarbons An air/fuel mixture drawn Air/fuel mixture Heat compression Exhaust valve opened. Expelled into cylinder compressed ignites mixture. Gases expelled. gasses Power. Hydrogen Fuel Cells Defined On the other hand, fuel cells convert chemical energy in hydrogen to electricity. Pure water and potentially useful heats are the only byproducts. (Program, 2006) Figure 5: Hydrogen Fuel Cell Byproduct 8
  • 10. The Case For Zero-Emission Technology In Heavy-Duty Trucking 1. Hydrogen fuel is fed into the anode of the fuel cell. Helped by a catalyst, hydrogen molecules (H2) are split into electrons and protons. 2. Electrons are channeled through a circuit to produce electricity. 3. Protons pass through the polymer electrolyte membrane. 4. Oxygen (from the air) enters the cathode and combines with the electrons and protons to form water. 5. Water vapor and heat are released as byproducts of the reaction. 9
  • 11. The Case For Zero-Emission Technology In Heavy-Duty Trucking III. Problem Domain States with relevant deep-water ports face the problem of allowing a major source of revenue to continue operations in the face of numerous legal entanglements with environmental groups and communities in the trade corridors. Simply put, diesel exhaust has been proven to have direct relationship to a person’s chances of metastasizing respiratory and/or cardiovascular illnesses. On the other side of the ledger, a State and local governments receives billions of dollars in tax revenue from the port system. The ports also provide millions of jobs in a region. Diesel’s Negative Health Effects In 1998, California identified diesel exhaust particulate matter (PM) as a toxic air contaminant based on its potential to cause cancer, premature death, and other health problems. Diesel engines also contribute to California's fine particulate matter (PM 2.5) air quality problems. Those most vulnerable are children whose lungs are still developing and the elderly who may have other serious health problems (Board C. A., 2010). Diesel exhaust contains more than 40 toxic air contaminants. The California Air Resource Board estimates that about 70% of the cancer risk that the average Californian faces from breathing toxic air pollutants stems from diesel exhaust particles. (California, 2001) Table 3: Health Effects Associated with Goods Movement in CA - 2005 (Angeles, 2011) Health Outcomes Cases Per Year Premature Death 2,400 Hospital Admissions (Respiratory Causes) 2,000 Hospital Admissions (Cardiovascular Causes) 830 Asthma and Other Lower Respiratory Symptoms 62,000 Acute Bronchitis 5,100 Work Loss Days 360,000 Minor Restricted Activity Days 3,900,000 School Absence Days 1,100,000 Environmental Impact of a Port System Because this movement of cargo is usually over pre-defined routes, on a repeated basis, municipalities within these routes suffer from some of the worst air quality in the United States. Residences along these trade corridors are exposed to diesel exhaust and other vehicle emissions, noise from truck-congested roads, bright lights from round-the-clock operations, and other potential health threats. 10
  • 12. The Case For Zero-Emission Technology In Heavy-Duty Trucking It is not without coincidence, that the regions around the top-7 ports in the United States happen to have the worst Air Quality Rankings in the nation. Figure 6: Air Quality Rankings (Methods, 1996) Economic Importance of a Port to a State Government Despite its environmental and health drawback, deep-water port systems are usually a major source of tax revenues and jobs for the state and local governments in which they reside. Case in point, in a March 2007 national economic impact study by the twin ports of Los Angeles | Long Beach, reported that imports coming in through the complex generated jobs, income and tax revenues in every state in the nation. (Hricko, 2008) Table 4 - Growth in the National Impact of Trade, 1194-2005, For Goods Using Southern California's Trade Infrastructure Network 1994 2000 2005 Total Trade $74 billion $196 billion $256 billion State and Local Taxes $6.0 billion $16.4 billion $28.1 billion Jobs (Full-time Equivalents) 1.1 million 2.0 million 3.3 million 11
  • 13. The Case For Zero-Emission Technology In Heavy-Duty Trucking IV. The Solution Domain: Technology that solves the dilemma In a study commissioned by the twin Port of Los Angeles and Long Beach, a zero-emission solution was the only way that the ports will be allowed to expand its routes into new and current municipalities. In 2011, a solution was found. Through the public-private partnership between the U.S. Department of Energy, the twin Port of Los Angeles | Long Beach and Vision Industries Corporation, came the 1st Class 8 zero-emission big-rig Hydrogen Fuel Cell / Electric Hybrid vehicle, the Tyrano™. In its simplest form, the hybrid vehicle runs on an electric motor powered by Lithium-ion batteries and Hydrogen fuel cells. The Tyrano is currently undergoing drayage testing at the Port of Long Beach by a national trucking fleet operator, Total Transportation Services, Inc. (TTSI). The Hydrogen Fuel Cell/Electric Hybrid Truck Explained Vision Industries Corporation is headquartered in El Segundo, California. Vision provides a proprietary hydrogen/electric hybrid drive system that out-performs a conventional diesel truck. The Tyrano has: 1. Superior power (536 HP and 3,300 lbs./ft. of torque) with the; 2. Extended range provided by a hydrogen fuel cell, at a; 3. Lower cost per mile, and with a; 4. Zero-emission footprint! 12
  • 14. The Case For Zero-Emission Technology In Heavy-Duty Trucking The heart of the hybrid hydrogen/electric truck is the software running the electronic control unit (ECU). The ECU controls all the sensors and control boxes running the:  Electric Motor (converts electrical energy to mechanical energy).  Battery Pack (giving power to the electric motor).  Hydrogen Fuel Cell (recharges the batteries). Compared to a conventional diesel truck, the Vision Tyrano, has better performance (torque and horsepower), a lower cost of ownership and does so with a zero-emission footprint. It’s also extremely quiet. Value proposition 1: Better Performance 2010 Diesel LNG Hydrogen FC Class 8 Truck Horsepower 450 peak 320 peak 536 peak Torque (foot/lbs.) 1,350 peak 1,000 peak 3,300 peak Fuel 10,000 Gal. 16,700 Gal. 6,765 lbs. Value Proposition 2: Zero-Emissions 2010 Diesel LNG Hydrogen FC Class 8 Truck Particulates 12.37 lbs. 4.6 lbs. Zero Emission NMHC/MHC 173 lbs. 66.5 lbs. Zero Emission NOx 1,485 lbs. 570 lbs. Zero Emission CO2 217,800 lbs. 142,145 lbs. Zero Emission Value Proposition 3: No Noise 2010 Diesel LNG Hydrogen FC Class 8 Truck Noise Pollution Yes Yes No 13
  • 15. The Case For Zero-Emission Technology In Heavy-Duty Trucking Value Proposition 4: Lower Lifetime Cost of Ownership Traditional Vision's Vehicle Metrics Diesel Class 8 Truck Savings Initial Vehicle Cost 140,000 270,000 (130,000) Tax Credit for New Qualified Alt. Motor Vehicles - (40,000) 40,000 Initial Net Vehicle Cost 140,000 230,000 (90,000) Service Life Fueling Costs $606,365 $229,412 $376,953 Service Life Maintenance Costs $25,600 20000 $5,600 Salvage Value (20,000) (20,000) - Total Ownership Cost $751,965 $359,412 292,553 Assumptions Vehicle Service Life (years) 8 8 Miles/Year 78,000 78,000 Fuel Cost (per gallon of diesel or $/lbs. of H2) $4.47 $2.50 MPG or MPP(H2) (50/50 duty cycle) 4.6 6.8 Maintenance Cost/Year $3,200 $2,500 Value Proposition 5: Hydrogen Fuel Cells - A Portable Power Supply A hydrogen fuel cell-powered truck has an electric motor powered by Lithium-ion batteries. The batteries are constantly charged by a fuel cell that converts hydrogen gas into electricity. The batteries can also benefit from the use of Regenerative Braking to incrementally add charge. In a hybrid hydrogen / electric vehicle, the batteries can be charged in four (4) scenarios: In the driving mode, the fuel cells could be programmed to either: 1. Recharge the batteries if its state-of- charge (SOC) was getting low, and/or; 2. Directly assist in powering the electric motor. 14
  • 16. The Case For Zero-Emission Technology In Heavy-Duty Trucking In a braking situation, an electric vehicle can be configured to take advantage of Regenerative Braking, in which the vehicles mechanical energy – during braking -- is harvested and re-routed to charge the battery. While the hydrogen / electric vehicle is parked, the fuel cell can be triggered to begin charging the batteries if its state-of-charge was low. In a typical port scenario, where the majority of a truck driver’s time is spent in a stop-and- go or queuing mode, the batteries would have ample time to regain full-charge before out- bound service is resumed. At the end of a duty-cycle, the owner- operator or fleet operator has the option to plug-in the vehicle into a power source to recharge the batteries for the next shift. The fuel cell can also be programmed to assist in charging if the vehicle were to be used in a 24/7 scenario. 15
  • 17. The Case For Zero-Emission Technology In Heavy-Duty Trucking Endorsements and Validation of Hydrogen Fuel Cell-Powered Trucks In 2010, the U.S. Department of Energy classified Federal Vision’s Class 8 Truck and Terminal Tractor as Government “Advanced & Alternative Vehicles.” In 2010, the Port of Los Angeles and the Port of Long Beach separately awarded Vision Industries with a State Port contract to deliver a Class 8 heavy-duty truck for Authority demonstration and testing in revenue services. On July 18, 2011, Total Transportation Services, Inc. presented Vision Industries with a Letter of Intent to National purchase one hundred Class 8 Hydrogen Fuel Cell / Trucking Fleet Electric Hybrid trucks, with the option to purchase an Operator additional 300 units. 16
  • 18. The Case For Zero-Emission Technology In Heavy-Duty Trucking V. The Recommendation The Cleantech Alliance of TTSI and Vision Industries is asking this Congressional Subcommittee for funding assistance for the purchase and manufacturing of: 1. One hundred Class 8 Hydrogen Fuel Cell-Powered Trucks, and for the; 2. Construction of an on-site Hydrogen Fuel Station to service the fleet. The Environmental and Health Benefit If 100 diesel trucks were replaced with 100 Hydrogen Fuel Cell / Electric Hybrid trucks at the Ports of Los Angeles | Long Beach, the effect would be equivalent to removing the following pounds of toxins and diesel particulates from the air on a yearly basis: Figure 7: Port-wide Emissions by Source (Starcrest Consulting Group, 2011) Diesel PM NOx SOx CO HC a) Emissions / Yr Heavy-Duty Vehicles (tons) 28 1,523 4 352 71 Heavy-Duty Vehicles (lbs) 56,000 3,046,000 8,000 704,000 142,000 (2000 lbs / ton) Total South Coast Air Basin (tons) 271 8,216 1,339 1,936 452 Total South Coast Air Basin (lbs) 542,000 16,432,000 2,678,000 3,872,000 904,000 Percentage 10% 19% 0.3% 18% 16% b) Drayage Trucks Ports (2011) 16,000 16,000 16,000 16,000 16,000 Emissions (tons) / Yr / Diesel 0.0018 0.0952 0.0003 0.0220 0.0044 Emissions (lbs) / Yr / Diesel 3.50 190.38 0.50 44.00 8.88 c) 100 H2 FC Trucks Emission Revomed (tons) / Yr 0.18 9.52 0.03 2.20 0.44 Emission Revomed (lbs) / Yr 350 19,038 50 4,400 888 The Benefit of Promoting the Use of a Sustainable & Alternative Energy Source In today’s energy supply system, electricity, gasoline, diesel fuel and natural gas are made from the conversion of a primary energy source, such as coal, petroleum or underground methane into a deliverable form of energy. Hydrogen on the other hand can be made from a variety of energy feedstock using the resources and processes that are most economical preferred. (Authority, 2004) The most prevailing way to produce Hydrogen is steam reforming. Steam reforming is a 70% efficient process that coverts methane (and other natural gases) into hydrogen and carbon monoxide with the introduction of steam and a nickel catalyst. 17
  • 19. The Case For Zero-Emission Technology In Heavy-Duty Trucking Figure 8: Hydrogen Pipeline Port of LA | Long Beach Hydrogen is in abundant supply near most Ports. In the State of California, there is a 17-mile underground pipeline built by Air Products & Chemicals (NYSE: ADP). The Air Products & Chemicals’ Wilmington plant, which supplies Hydrogen to the eight (8) oil refineries within close proximity, has the capacity to produce over 800,000 lbs. of Hydrogen per day. The combined eight (8) oil refineries consume 400,000 lbs. per day, which leaves 400,000 lbs. that can be used to refuel 20,000 Hydrogen FC powered trucks. The Economic Benefit Based on fueling cost alone, one hundred Hydrogen Fuel Cell-Powered Trucks can save a trucking fleet operator an estimated $37,695,345, over an 8 year period compared to conventional diesel trucks. Traditional H2 Fuel Cell / Single Unit 100 Unit Diesel Hybrid Electric Savings Savings Service Life Fueling Cost 8 8 Miles/Year 78,000 78,000 Fuel Cost (per gallon diesel, lbs. of H2) $4.47 $2.50 MPG or MPP (H2) (50/50 duty cycle) 4.6 6.8 Gallons/Year | lbs./Year 16,957 11,471 Fuel Cost / Year $75,796 $28,676 $47,119 $4,711,918 Fuel Cost Over 8 Years $606,365 $229,412 $376,953 $37,695,345 18
  • 20. The Case For Zero-Emission Technology In Heavy-Duty Trucking The Program Cost Table 5: Itemization of Program Cost Itemization of Program Cost Rate Units Amounts 100-unit Amount ($) Class 8 Zero-emission Truck Cost $ 270,000 1 $ 27,000,000 Direct Labor Cost / Truck ⃰ Assemblers (Rate/Hr) x 2 $ 17.00 144 $ 489,600 Fabricators (Rate/Hr) x 2 $ 17.00 144 $ 489,600 Engineering (Rate/Hr) x 2 $ 50.00 144 $ 1,440,000 Program Administration Cost $ 50,000 Total Truck Cost $ 29,469,200 ⃰ Build Cycle: 9-days per truck (8-hr work day) Itemization of Program Cost Rate Units Amounts Station Amount ($) Hydrogen Fueling Station Site Preparation $ 2,700,000 1 $ 2,700,000 Storage $ 500,000 1 $ 500,000 Dispenser $ 400,000 1 $ 400,000 Canopy $ 450,000 1 $ 450,000 Backup Reformers (500 kg) $ 2,500,000 1 $ 2,500,000 Product Compressor $ 500,000 1 $ 500,000 Total Fueling Station Cost $ 7,050,000 Total Funds Requested $ 36,519,200 19
  • 21. The Case For Zero-Emission Technology In Heavy-Duty Trucking Recommended State for Implementation Based on dangerous ozone levels, the economic significance of the twin Ports of Los Angeles and Long Beach ($306B in commercial cargo), and current hydrogen infrastructure in-place, we are suggesting that this program start in the State of California. California has the greatest number of counties who violate the 0.070 ppm standards. (Agency U. S., 2008) Figure 9: Counties with Monitors Violating Primary 8-hour Ground-level Standards (0.060 – 0.070 parts per million) On a national scale, California has led the way in cleantech adoption and innovation. They may also have come up with an attractive and viable zero-emission adoption catalyst, a zero-emission gate. In an October 2011 meeting, the Los Angeles Board of Harbor Commissioners expressed their support for the creation of a zero-emission gate at the Twin Ports of Los Angeles and Long Beach. Figure 10: Proposed Zero-Emission Gate -- Attractive Adoption Catalyst The proposed zero-emission gate will allow zero-emission vehicles faster and preferred access to the extremely over-crowded Port’s terminals, thus enabling zero-emission truck operators to double their load transportation during the day. 20
  • 22. The Case For Zero-Emission Technology In Heavy-Duty Trucking VI. Endorsed by In a separate communique, we will provide letters of support for this zero-emission solution from fellow members of Congress, State Assemblymembers, the Mayors of Long Beach and Los Angeles, Environmental Groups and other interested stakeholders. On behalf of Total Transportation Services, Inc. and Vision Industries Corporation, we thank you for your time and consideration. 21
  • 23. The Case For Zero-Emission Technology In Heavy-Duty Trucking VII. About the Parties Total Transportation Services, Inc. (“TTSI”), based in Los Angeles, Headquarters: CA, is a leading national provider of port drayage and related 18735 South Ferris Place trucking and logistics services in the United States. Rancho Dominguez, CA 90220 (O) 310-816-0260 ‒ Provides construction support, long-haul truckload (F) 310-984-3195 brokerage and value-added warehousing services. www.tts-i.com ‒ Operations in many of the ports across the country including: Long Beach, Los Angeles, San Diego and Stockton in California and Savannah, GA and Norfolk, VA. ‒ Fifth largest provider of drayage services in the twin ports of Long Beach and Los Angeles, which service over 65% of the containers entering the United States ‒ First company to place into service a clean fleet in the Ports of Long Beach, Los Angeles, and San Diego. Vision Industries Corporation (OTCBB: VIIC), based in El Segundo, Headquarters: CA, is a developer of zero-emission hydrogen fuel cell / electric 120 Eucalyptus Drive hybrid vehicles and turnkey hydrogen fueling systems. Vision’s El Segundo, CA 90245 proprietary hybrid drive system combines the superior (O) 310-450-0299 acceleration of a battery-powered electric vehicle with the (F) 310-450-0202 extended range provided by a hydrogen fuel cell. www.VisionIndustriesCorp.com 22
  • 24. The Case For Zero-Emission Technology In Heavy-Duty Trucking Bibliography Agency, U. S. (2008). Counties With Monitors Violating Primary 8-hour Ground-level Ozone Standards. Retrieved December 2011, from United States Environmental Protection Agency: http://www.epa.gov/airquality/ozonepollution/pdfs/20100104maps.pdf Agency, U. S. (2008). Ground-level Ozone Standards Designations. Retrieved December 16, 2011, from United State Environmental Protection Agency: http://www.epa.gov/ozonedesignations/ Angeles, P. f.-L. (2011). Health Impacts of Air Pollution Associated With Goods Movement. Retrieved December 14, 2011, from Physicians for Social Responsibility-Los Angeles : http://www.psr- la.org/issues/environmental-health/air-pollution-and-goods-movement/ Associates, B. (2007). Trade Impact Study. Bothell, WA: BST Associates. Authority, N. Y. (2004). Hydrogen Fact Sheet: Hydrogen Production - Steam Methane Reforming (SMR). Albany, NY: New York State Engergy Research and Development Authority. Board, C. A. (2006). Emission Reduciton Plan for Ports and Goods Movement in California. Sacramento, CA: California Air Resources Board. Board, C. A. (2010, January 25). Diesel Programs and Activities . Retrieved December 13, 2011, from California Environmental Protection Agency Air Resources Board: http://arb.ca.gov./diesel/diesel.htm California, C. O. (2001). Health Effects of Diesel Exhaust. Sacramento, CA: CARB Office of Environmental Health Harzard Assessment and the American Lung Association of California. Encyclopedia Britannica, I. (2011). Diesel Engine. Retrieved December 13, 2011, from Encyclopedia Britannica eb.com: http://www.britannica.com/EBchecked/topic/162716/diesel-engine Hricko, A. (2008, February). Global Trade Comes Home, Community Impacts of Goods Movement. Environmental Health Perspectives, 116(2), 79--81. Methods, C. (1996). AirGrades. Retrieved December 15, 2011, from US Air Quality Gradebook: http://www.creativemethods.com/airquality/maps/united_states.htm Program, U. D. (2006). Hydrogen Fuel Cells. Washington D.C.: U.S. Department of Energy. Starcrest Consulting Group, L. (2011). Port of Los Angeles Inventory of Air Emissions - 2010. Los Angeles, CA: Port of Los Angeles. Woods, J. R. (2011). Frieght & Livability - The GCCOG's I-710 Freight Corridor Experience: A Path Forward. Gateway Cities, CA: Gateway Cities Council of Government. 23