CALSTART Current February 2014

US VIP Kick Off CALSTART’s national Clean Vehicle Incentive Program initiative – US VIP for short – kicked off January 28 with a successful organizing meeting in Pasadena that now sets in motion the first stage of an ambitious push to create a national network of incentives for clean commercial vehicles.

US VIP is an aggressive partnership with industry to create $100 million in yearly incentive funding for clean commercial vehicles across the nation. US VIP will target a tripling of the number of regions in the nation operating effective voucher-based incentive programs for

Ricardo Executive Joins CALSTART Board

Pasadena Supports Plugin Infrastructure and Vehicles Pg. 3 Paul Rivera, Ricardo’s Global Product Group Director of Hybrids and Electrical Systems, has recently been appointed to the board of directors of CALSTART.

Leadership Circle Gathers in Thousand Palms clean trucks and buses, building off successful incentive programs now operating in New York, Chicago and California. The goal: drive deployment of more than 20,000 vehicles via these programs.

CALSTART member leaders from the advanced technology industry met in mid -January for the first of two annual Leadership Circle meetings – gatherings of a diverse cross-section of leaders to think through technology trends and policy initiatives. Forty people met for

(US VIP, continued on pg 4)

(Leadership Circle, continued on pg 4)

NE Regional HTUF Fleet Workshop and Ride and Drive April 16, 2014 New York, NY www.HTUF.org

Workhorse and Amp Electric: Success by Adjusting to Market Pg. 2 World LNG Conference Draws 1,122, including CALSTART Pg. 5

(Rivera, continued on pg 3)

HTUF Events

The Inside Stories

2014 HTUF Annual Meeting Sept. 22-23, 2014 Argonne National Laborat0ry Lemont, IL www.HTUF.org

Show Me the Money Reveals New Funding from FTA, DOE and CEC Pg. 5 Read the Latest on California and US Policy Pg. 6 Industry Events

NY City Commercial Refuse Clean Truck Workshop February 27, 2014 Brooklyn, NY www.calstart.org/events

Drive Electric Ohio April 29, 2014 Columbus, OH www.calstart.org/events F e b r u a r y / M a r ch 2 0 1 4

Workhorse and Amp Electric A Success Story As a CALSTART member company, Workhorse was invited to answer several questions of interest to readers.

What does your company do in the advanced vehicle technology arena? Since the 2007 inception of AMP Electric Vehicles, we have distinguished ourselves by adjusting to the marketplace – offering technology that could be commercialized in less than 5 years and at a price point that provides an acceptable return on investment.

Under that culture, we started with all electric vehicles, moved to alternative fuels and to where we are today – offering the E-GEN Drive™ System.

Chassis LLC was formed as a manufacturer of chassis for Class A motor homes and other vehicles. There are thousands of Workhorse chassis on the road today and our nationwide network of dealers and service centers enabled it to provide timely support wherever and whenever needed.

In addition to having the capacity to build new vehicles, we also have a repower program geared to converting new and used vehicles from gasoline or diesel power to all-electric. Two all-electric 2012 Ford450 paratransit buses have been delivered to BARTA

The E-GEN Drive advanced drive train technology is designed specifically for class 4-6 trucks in the package/ product delivery industry. This technology provides the fleet operator with battery-electric vehicles that use onboard CNG, propane or gasoline generators to charge (Berks Area Regional Transit Authority) in Reading, Pennsylvania and are undergoing final testing. These buses should be in use within a few months and are equipped with wireless charging systems from Momentum Dynamics.

the battery. E-GEN Drive overcomes range anxiety by offering a range of up to 200 miles per duty cycle. And, it has a three-year payback without incentives, while requiring less power from the wall.

What sets Workhorse apart? When General Motors divested part of its business in 1998, Workhorse Custom F e b r u a r y / M a r ch 2 0 1 4 ▪ P a g e 2

How has your company evolved to address the changing advanced vehicle technology market?

Our team is a collection of auto industry veterans, software entrepreneurs, engineers and business executives. We launched AMP Electric Vehicles in 2007 with the idea that we could develop a batterypowered drive train to replace traditional gasoline engines in cars. We began with the Saturn Sky and moved up to larger vehicles like the Chevrolet Equinox. Developing battery electric drive trains for increasingly larger vehicles gave us a significant knowledge base.

Given that automobile OEMs were also developing their own electric vehicle technology, we began to focus on medium-duty trucks. A major OEM asked us

to complete an electrification project on a delivery truck.

When it successfully met all the requirements, we knew we had technology we could deliver. The next step – take that technology to the market.

What significant events happened in 2013 and what does 2014 hold for Workhorse? We had a business relationship with Navistar and, when it decided to divest itself of its Workhorse brand, we were immediately interested. We consummated the purchase last March, which most importantly, included the Union City, Indiana Assembly Plant. Having the assembly plant enables us to produce our own chassis, offer a wider array of chassis sizes, and better manage our costs. We believe the combination of a well-proven Workhorse chassis outfitted with our scalable battery electric technology (or propane, gas or CNG engines) gives us a solution to fit nearly every need in the market.

The Workhorse E-100 All-Electric Walk-in Van is available now and approved for financial incentives from both the California HVIP and NYSERDA New York Truck VIP programs.

For more information, contact Steve Burns, CEO, steve.burns@ampelectricvehicles.com or go to www.ampelectricvehicles.com.

Pasadena Supports Plug-in Vehicles and Infrastructure The City of Pasadena is actively supporting the deployment of plug-in electric vehicles and their associated Tesla’s Model S infrastructure. By upgrading, expanding and marketing EV charging stations in the City in both the public and private sectors, Pasadena is on track to launch one of the first city-wide, sustainable transportation networks in the United States. Employers and property owners can apply for funding assistance. But hurry! Applications for grants end on February 28. Visit http://bit.ly/1bkG3Y0 to see if you qualify, and to get details on how to apply.

(Rivera, continued from pg 1)

Rivera's appointment comes just a few months after Ricardo's expansion into California. "This appointment shows Ricardo's commitment to hybridization and electrification, as well as to continued growth in California," commented Thomas Apostolos, president of Ricardo, Inc. "We believe that our expansion in California will bring tremendous value to our clients - not only within the state, but also to customers across the US and internationally who are working towards clean transportation."

“We are very pleased to have Paul joining our Board of Directors. Paul brings a global perspective and has a strong grasp of emerging technology trends and opportunities,” said George Survant, CALSTART Board Chair.

Rivera has more than 20 years of experience working in various capacities within the automotive industry and hands on experience in more than 60 countries. He has spent the last 10 years leading teams focused on delivering technical solutions for advanced propulsion technologies including CNG, hydrogen storage, hybrid and electric vehicles.

“I am honored to have been nominated to the board of directors of CALSTART," added Paul Rivera.

"Ricardo’s innovative technologies provide a solid foundation to help CALSTART in its endeavors to reduce greenhouse emissions and our reliance on fossil fuels.”

In other board news, CALSTART announced that Puon Penn, Senior Vice President for Wells Fargo, has accepted an officer position as Vice Chair of the CALSTART Board of Directors. Penn is stepping in for the former Vice Chair, Jane Warner of American Lung Association in California, who passed away in September. Mike Britt, Director of Maintenance and Engineering for UPS, is now Secretary of the Board.

F e b r u a r y / M a r ch 2 0 1 4 ▪ P a g e 3

(Leadership Circle, Continued from pg 1)

the day-long meeting, co-hosted by member company SunLine Transit Agency and CALSTART, in Thousand Palms, California.

CALSTART Board of Directors John Boesel CALSTART Michael G. Britt, Sr. United Parcel Service Jack Broadbent Bay Area Air Quality Management District Caroline Choi Southern California Edison Karen Hamberg Westport W. Brian Olson Quantum Puon Penn Wells Fargo Jeffrey Reed, Ph.D. Sempra Energy Paul Rivera, Ricardo Dipender Saluja Capricorn Investment Group Paul Smith New Flyer George Survant Time Warner Cable Chairperson Steve Trichka BAE Systems

follow-up summit to the 2012 one in Sacramento. This year’s summit, to be held on March 7, will be attended by key decision-makers from the Governor’s office who will listen to recommendations on updating the ZEV Action Plan.

Crowfoot urged stakeholders to make our technologies tangible to policy makers in Sacramento in 2014 by committing to go to Sacramento a few times during the coming year.

The Leadership Circle is a member benefit reserved for Full Service and Board of Director member companies. The next meeting will be June 10 at Ricardo Inc. in Van Buren Township, Michigan.

Industry Leaders at HTUF 2013

The meeting kicked off with welcoming remarks from SunLine Transit General Manager Lauren Skiver and CALSTART President and CEO John Boesel. The two featured panels of the day focused on zero and near-zero emission vehicles with one panel emphasizing light-duty and the other medium-and heavy-duty.

Speakers included representatives from BAE Systems, Ford Motor Company, Gateway Cities Council of Governments, General Motors, Los Angeles Metro, New Flyer Industries, Southern California Edison, SunLine Transit and Toyota Motors. Time was also allotted for discussions about policy trends in California, the Northeastern states and on the federal level.

Wade Crowfoot, Senior Adviser to California Governor Jerry Brown, was the keynote speaker and, in a lively discussion, he addressed the Governor’s Zero-Emission Vehicle (ZEV) Action Plan, cap-and-trade investments and nearterm direction for vehicle and fuel policy.

Related to ZEVs, he encouraged interested parties to plan to attend a

F e b r u a r y / M a r ch 2 0 1 4 ▪ P a g e 4

(US VIP, continued from pg 1)

The organizing meeting brought together a core group of companies and fleets to discuss and commit to becoming charter members and supporters of the multiyear initiative. Charter level participants will contribute funding for the effort and determine markets, strategies and which technologies and fuels to prioritize. The strong commitment from the first group was sufficient to move the initiative forward.

Next steps include finalizing the US VIP Charter member agreement, researching first potential market targets and setting a follow-on meeting to make decisions on the first two incentive regions to work.

Future meetings are open only to contributing members, but additional charter members are still welcome. Join the initiative! Contact Bill Van Amburg (bvanamburg@calstart.org or 626-7445650) or Kevin Beaty (kbeaty@calstart.org or 626-744-5603) to secure a seat at the decision table that will create new incentive markets.

LNG Event Draws 1,122 People The World LNG Fuels Conference 2014 was held in Houston, Texas, in January. CALSTART Senior VP, Bill Van Amburg and HTUF Director/VP, Kevin Beaty spoke and moderated at three sessions on LNGFueled Highway Trucking. “The World LNG Fuels

Show Me the Money...

Advanced Vehicles Technology Research $49.4 million awarded by DOE to accelerate research/ development of on-road vehicles in 13 areas of interest.

Concept Paper Deadline: February 19, 2014 1.usa.gov/1kGXAj5 DE-FOA 0000991 Deployment of Low or No Emission Transit Buses $24.9 million offered under FTA’s LoNo Program to transit agencies or state DOTs that may be working with partners.

Submittal Deadline: March 10, 2014 1.usa.gov/1lYW9LH Pilot-Scale and CommercialScale Advanced Biofuels Production Facilities $24 million in 50% match share from CEC for facilities that can produce low-carbon transportation fuels.

Application Deadline: March 11, 2014 bit.ly/1fCefmO PON-13-609

Conference was the most informative natural gas fuels and markets event in which I have participated,” says Mr. Van Amburg. “The level of speakers was outstanding, the data was rich and the knowledge gained about breakout markets for LNG was unmatched. We’re proud to help grow the on-road segment of this strong conference.”

CALSTART’s exhibit drew many LNG industry leaders, where Kimberly Taylor, Director of Member Services, discussed opportunities to work together to advance LNG transportation technology.

$19 million New York Truck – Voucher Incentive Program encourages the purchase of batteryelectric commercial trucks and more. https://truck-vip.ny.gov Natural Gas Vehicle Incentives $10.8 million offered by the CEC for incentives to reduce purchase price for new on-road NGVs . OEMs may reserve incentives directly for eligible vehicles sold through its dealers/ distributors.

Reservation Submission Deadline: May 1, 2014 www.energy.ca.gov PON-13-610

More funding opportunities are available to CALSTART members at www.calstart.org.

F e b r u a r y / M a r ch 2 0 1 4 ▪ P a g e 5

California Policy Mission Statement CALSTART is dedicated to the growth of a clean transportation technologies industry that will:    

Clean the air Secure the nation’s transportation energy future Create high-quality economic opportunities Reduce greenhouse gas emissions

Member benefits include:  Funding updates and announcements  Discounts on events and webinars  Access to complete member contact information  Standard or Full Service members receive free e-blast to our email list CALSTART Headquarters 48 S Chester Ave Pasadena, CA 91106 626-744-5600 calstart@calstart.org www.calstart.org Know an industry colleague who would benefit from CALSTART membership? Contact Kimberly Taylor, Member Services Program Director, 626-622-6229 or ktaylor@calstart.org.

California continues to lead the nation in clean transportation and is really stepping up on the public investment front.

Governor Brown’s proposed budget would allocate $200 million in AB 32 cap and trade auction revenues to clean vehicle incentives and demonstrations, as well as additional funding for bioenergy. The budget proposal is just one step in what promises to be a long and contentious process as stakeholders, including CALSTART debate investment priorities.

On a related note, state agencies are moving forward with investment plans for existing AB 118 incentive programs. CARB recently kicked off its AQIP funding plan process and will be holding workgroup meetings in February to discuss priorities and program changes for vehicle deployment incentives and clean freight demonstrations. CEC will hold a meeting on February 10th to solicit input on their AB 118 investment plan, which focuses on a wide range of vehicle and fuel investments.

The legislature remains very interested in providing input and direction on the future of clean transportation in California, including options for zero- and near-zero emission goods movement. Also expected are legislation and discussions on incentive program coordination and modification, electric vehicle deployment, low carbon fuels and cleaner medium- and heavy-duty vehicle.

Many of the above issues will be discussed at the 2nd Annual Clean, Low-Carbon Fuels Summit in Sacramento on April 2. This is a fuel- and technology-neutral forum for discussing industry progress and the role

of state policy. Key topics will include the Low Carbon Fuel Standard and state investments. For more information, contact CALSTART Policy Director Jamie Hall (jhall@calstart.org).

Federal Policy Things continue to move more slowly in Washington than at the state level, but there is funding news to report. On January 17, President Obama signed an FY 14 omnibus appropriations bill. This includes funding for hydrogen and fuel cell technologies ($93 million), as well as vehicle technologies ($290 million) through the Department of Energy. Both of these numbers represent decreases of at least 5% from FY13 levels. The bill also included $10 million to support existing Super Truck contracts, with instructions for the Department of Energy to research heavyduty long-haul truck technologies, such as alternative fuel and dual-fuel technologies.

As noted in the last newsletter, CALSTART has been particularly active in discussions with the FTA around advanced technology bus funding. See “Show Me the Money” in this edition for information about FTA’s funding announcement.

In fuels policy, heated debates continue on the Renewable Fuel Standard program. The EPA has proposed a reduction in renewable fuel requirements for next year from 18.15 to 15.21 billion gallons. While most of the reduction would come from the conventional ethanol requirement, the proposed changes would also reduce fuel requirements for other advanced biofuels, creating uncertainty in the markets for these fuels. Investors, fuel providers and others have been weighing in on the proposal, and all eagerly await EPA’s next steps.

F e b r u a r y / M a r ch 2 0 1 4 ▪ P a g e 6