Thank you for the opportunity to

Transcription

1 Thank you for the opportunity to

2 GO over slide bullets briefly

3 Go Over slide bullets briefly

4 Sunline was the first transit agency to park its entire Diesel fleet and acquire 40 CNG vehicles in the span of a weekend in As you can imagine, there were many challenges in this bold move, but the agency did not experience any major catastrophes in delivering the service. We currently run only Hydrogen and CNG at our facility to include all staff, relief and support vehicles and have no solid fuel dispensing at our facility.

5 SunLine has operated 9 generations of Hydrogen Fuel Cell vehicles and will be operating 9 more in the next two years. Our newest award include 5 Hydrogen Fuel Cell buses through the Federal No/Lo program. One all-electric with a small fuel cell range extender through our current configuration team of El Dorado, BAE, and Ballard and one through a new configuration team of New Flyer, Hydrogenics

6 This slide depicts the data collection of our current Hydrogen fleet. Most of our Hydrogen bus fleet is comprised of some of the youngest vehicles in our fleet. Useful life includes ensuring that these vehicles are deployed in daily service and monitoring of such. If the team does not embrace and support

7 the technology it will sit idle.

8 This table reflects total maintenance costs for the AFCBs and CNG buses. Scheduled and unscheduled maintenance cost per mile is provided by bus and by group of buses. The AFCBs have total maintenance costs the same as those of the CNG buses. The parts costs continue to be low for the AFCBs because parts for the propulsion system are typically covered by the manufacturer under warranty; however, SunLine s mechanics do nearly all of the work.

9 Hydrogen fuel costs at SunLine consist of the cost of natural gas for the reformer, the cost for maintenance of the station equipment, and capital cost amortization. SunLine performs the maintenance of the station equipment, including parts and labor. The average monthly cost for hydrogen at SunLine varies based on total hydrogen dispensed and station maintenance costs. The average monthly cost for hydrogen at SunLine varies based on total hydrogen dispensed and station maintenance costs. During the data period, the agency has seen costs from as low as $5.37/kg to more than $1,000/kg. The months when the station sees its highest use have the lowest cost per kilogram. In August 2013, the hydrogen cost was more than $1,099/kg. During that month SunLine replaced a failed chiller unit in the reformer, which resulted in a higher maintenance cost. From July 2013 through October 2013, SunLine s AFCB was not operating. Once the bus

10 was back in service, the station use increased.

11 To lead change we create risk. Everyone involved in the creation of an emerging technology assumes some portion of risk. If you attempt to eliminate the risk for one party, you only create a bigger risk for another. Some of the categories of complication are listed on this slide. It is important to note that others may exist or not be relevant depending on the agency involved and their partners. It is also important to note that most can be overcome. PROCUREMENT Work is currently being done to bridge the gap between Federal funding partners and the mechanism used to procure alternative fuel vehicles. This will provide a less complex roadmap for transit agencies wishing to move to a cleaner vehicle type. Regulatory agencies are also open to discussions about life cycle and spare ratios as they relate to emerging technologies. These changes will also assist in the transition to cleaner fuel vehicles. PARTNERSHIPS I cannot stress how important it is for all partners in an emerging technology project to understand the risk and pressure for everyone involved. Proven technology has afforded transit to hold manufacturers completely responsible for defects or performance issues. Emerging technologies require a higher level of communication and time to troubleshoot issues and create solutions to operational problems. Transit agencies are continually under funding and approval pressure and have little extra resources if any. COMMUNICATION Managing Partner expectations and strong leadership

12 COMMITMENT As I stated when taking about risk, minimizing for one only creates more for another. All parties involved in the launch of an emerging technology must understand the commitment. Leaders must support their team while ensuring that operations department don t park the vehicle based on inconvenience to see the project through. Example In 1996 the transit agency I worked for had several compressed natural gas vehicles parked for the first 3 years I worked at the agency. I finally asked why and was told that they were this new fangled CNG and they didn t work. We finally auctioned them off about 2 years later. Now CNG is the leader in fuel type for transit agencies across the country. This is not a new thing. This technology was tried, failed at some places, most likely from a lack of commitment as much as vehicle performance, but continued at other sites and was perfected to become a production option for transit. This is possible for Hydrogen solutions as well and SunLine is working hard to further that goal.

13 Benefits Obviously the environmental benefits. Transit also plays a significant role in preparing the public for other vehicle types to include their personal vehicles. Differences Complexity of the Hydrogen Training needs for technicians Replacement component costs and availability Questions to ask How committed and stable is your leadership? Can you manage rider expectations and service demands? Does your internal team support the program. More than one technology has bit the dust because a maintenance manager or other teammate does not support the change. Use Frank White and lift example SunLine s experience Strong and lasting Board support. Strategic public campaigns (like one I ll show you at the end of my presentation) Messages in mission, slogans, marketing and involvement that all speak to our focus on the environment. We are very consistent with our program message, branding to include what you see in this room. Our logo on the glass promoting the by

14 product of hydrogen use. Future We have successfully acquired a new Fuel Cell Bus that is the sister to our FC4 and FC5 platforms (El Dorado/Ballard/BAE configuration). We will also be taking delivery of a Van Hool Bus that we hope to be able to bring back on the road by using parts from it and our own Van Hool to create one working unit

15 The future of commercialization requires that the Transit Industry become more involved in the process. The investments already made along with the future investments planned, warrant strong emphasis on three key areas. One of the major concerns for Transit Operators is risk. Transit is already under extreme pressure for service delivery without the use of Alternative Fuel Technologies. Steps to minimize risk must include bringing Hydrogen to an acceptable level in: Reliability Affordability both initial and on going3 Education

16 When talking about risk, it is important to note that there are risks with proven technology that are often not talked about. Right now, some CNG operators are experiencing a major fleet defect in the operation of the ONLY engine offered for CNG transit buses. There is wide discussion on the need for options and competition for Hydrogen vehicles, but no one is discussing the issues connected to the lack of options for CNG. Currently, the industry sees Hydrogen and a much larger risk. It is true that there is still work to be done to improve the reliability of fleet operations with Hydrogen platforms, but we believe that a lack of education is a key factor in the industries hesitancy in moving to Hydrogen. In fact, there are more emerging configuration partnerships forming on the Hydrogen platform than the CNG since all CNG manufacturers use the same problematic engine.

17 A user driver process versus seller driven approach can be very successful We need a value proposition from our point of view and from the pressures of delivering transit We need technical assistance that can be recreated whenever we need it, not based on warranties and OEM schedules Visibility of success should come from our industry not those that produce the technology

18 The positives are noted at the top of this slide are extremely important not only to transit but to heavy and light duty applications and air quality improvements. Many of you may be aware that transit has tested many of the technology systems used in todays POV market including all electric and hybrid cars. The last three bullets represent some of the negatives of spill over effects. Transit providers have extreme pressures to deliver high quality transit services which shrinking funding resources and have been burned in the past. Many of us in leadership positions have endured a manufacturer shut down and were left to fend for ourselves in keeping our fleets on the road. Transit is

19 also guilty of excepting the funding for alternatives and not fully committing to its success.

20 Slide speaks for itself expand on bullets

21 SunLine made a Policy Change on CNG that created a lane for other properties to explore CNG without the influence of manufacturers or non-profits. It was successful because of the commitment of the agency. Our manufacturers need us to be active partners to increase commercialization activities and to understand all risks and rewards Non-profits have a stake in our projects, but are not operators or manufacturers, they are relationship builders and connectors to funding, we need to accept that and understand the role and responsibility they play along with the limitations of the relationship

22 SunLine is positioned to partner with the State and Federal funders to: Enhance the demand for Hydrogen Eliminate or mitigate risks Reliability Availability Competition DBE Lifecycle Spare ratios

23 To prevent the a loss of learning we believe that a Center of Excellence must be created. Is not limited to public agencies, but could attract light duty to heavy duty trucking Training courses Sales meetings, etc Significant investments have been made and are planned We need to educate our industry on procurement and team collaboration strategies The Center of Excellence is a site where those investments can be preserved and disseminated. Acquisition and in service management Prevents duplication of efforts Is not limited to Hydrogen, but can be used for all other

24 alternative and emerging energy technologies

25 Close with bullets briefly

26 To engage the Coachella Valley and specifically the youth, SunLine held a local poster contest with elementary and middle-school children to promote why transit is good for the Valley and the environment. The winning submission of each age division were used to wrap FC and FC5. SunLine was fortunate to partner with Desert Regional Medical Center who sponsored the wraps based on their mission of promoting healthy lifestyles and the engagement of our youth. 20