**Testimony of Joseph T. Dalum**

**Vice President**

**DUECO**

**Before the**

**Committee on Energy and Natural Resources**

**United States Senate**

**Full Committee Hearing: to receive testimony on the current state of
vehicles powered by the electric grid and the prospects for wider
deployment in the near future**

**September 16, 2008**

***Introduction***

Good morning Chairman Bingaman, Ranking Member Domenici, and
distinguished members of the Committee on Energy and Natural Resources.
Thank you for inviting me here today. Also thank you for the opportunity
to offer the views of DUECO and for soliciting the views of others on
the current state of vehicles powered by the electric grid and the
prospects for wider deployment in the near future.

My name is Joe Dalum, and I am Vice President of DUECO. Headquartered in
Waukesha Wisconsin, DUECO is one of the largest final stage manufactures
of utility trucks in the country, with facilities also located in South
Dakota, Minnesota, Indiana, Ohio and Pennsylvania. We produce aerial
devices, digger derricks and cranes that are sold to electric utilities
for the maintenance of their transmission and distribution power lines
in a 15 state region and are also used by utilities throughout the
country through UELC, our rental and leasing company, with direct
facilities in Florida, Texas and California. DUECO also provides
equipment and services for the telecommunications, contractor, electric
cooperative, municipality, gas utility and tree care markets.

In 2006, DUECO began to assess alternative hybrid vehicle technologies.
Those activities lead to a collaborative development program between
DUECO and Odyne Corporation. Odyne Corporation is a developer of Plug-In
Hybrid Electric Vehicle (PHEV) power trains for medium and heavy duty
trucks that weigh over 16,000 pounds. Our efforts resulted in the
introduction of the utility industry's first commercial plug-in hybrid
medium duty truck in the Fall of 2007.

Trucks consume a disproportionately large amount of fuel. Plug-in hybrid
technology can substantially reduce fuel consumption, emissions and
noise for many truck applications. Electricity, generated from domestic
sources, partially displaces the use of petroleum. The technology is
particularly beneficial for trucks that can be positioned close to the
power grid when not in use to allow for recharging, are operated in stop
and go driving, and/or idle for extended periods.

Plug-in hybrid technology for medium and heavy duty trucks is in the
very early stages of testing and deployment. Low production volume and
high cost threaten wide-scale adoption. In order to rapidly accelerate
the use of plug-in hybrid trucks in the next five years, a large
increase in resources directed toward research, development, engineering
and production will be required.

A close partnership between manufacturers, utilities and the government
can help increase wide-scale deployment of plug-in hybrid medium and
heavy duty trucks. The government in particular can help accelerate the
use of plug-in hybrid trucks by providing additional funding for
research, by creating incentives for consumers to purchase medium and
heavy duty plug-in hybrids through tax credits, by supporting private
investment through loan guarantees and by encouraging federal, state and
local governments to purchase medium and heavy duty plug-in hybrid
trucks. The U.S. can lead the world in plug-in hybrid technology for
medium and heavy duty trucks if we take strong and decisive action now.

***Background***

According to the Department of Energy, approximately 80 percent of all
the goods transported in the U.S. are moved by truck. In total, the U.S.
consumed approximately 140 billion gallons of gasoline and about 40
billion gallons of diesel fuel for on-road transportation in 2004.
Trucks consume billions of gallons of fuel annually, and "there exists
today great potential from several heavy-duty hybrid truck technologies
to significantly reduce fuel consumption and emissions."[^1] Plug-in
hybrid technology is one of the technologies that have great potential
to reduce fuel consumption for large numbers of trucks.

Truck fuel economy, power requirements and duty cycles often can differ
depending upon the application. A duty cycle, the proportional time
during which a truck is operated, in particular varies depending upon
the application. Trucks may spend much of their time idling to power
heating or cooling for the cab, or to operate truck mounted equipment.
U.S. trucks idle an average of 1830 hours per year and idling of
commercial vehicles is estimated to consume more than 2 billion gallons
of fuel annually, while producing unwanted emissions.[^2] Although the
number of trucks is small compared to passenger vehicles, their fuel
consumption and emissions are disproportionately large. According to
figures by the Oshkosh Truck Corporation there are approximately 90,000
refuse collection trucks in the U.S. but their collective fuel
consumption is roughly equivalent to 2.5 million passenger vehicles
(based on 10,000 gallons/year per truck).[^3]

There are more than 6,000,000 medium and heavy duty trucks in the U.S.,
excluding road tractors (18 wheelers). Medium and heavy duty trucks are
trucks that weigh 14,001 pounds or more.

Trucks are used in a wide variety of applications and are often
specialized. Trucks may perform numerous functions, resulting in a
variety of types, such as parcel and postage delivery trucks, utility
trucks, refuse haulers, beverage and refrigerated goods delivery trucks,
road maintenance and other work or service trucks, dump trucks, concrete
mixer trucks, liquid or gas transport trucks, shuttle and school buses,
military vehicles and over the road trucks. Trucks also are built in
many different configurations, sizes and weights.

Medium and heavy duty trucks are typically manufactured and marketed to
customers much differently than cars and light duty trucks.

Medium and heavy duty trucks, used by the utility industry and other
vocations are typically built in multiple stages. During the first stage
an original equipment manufacturer builds an incomplete vehicle,
commonly known as a chassis. The vehicle is then often completed by a
different company, referred to as a final stage manufacturer. Final
stage manufacturers typically evaluate the intended application of the
vehicle, perform engineering analysis, and then install an appropriate
body, equipment and interface components with chassis systems in a
manufacturing operation.

Medium and heavy duty trucks may also have multiple companies involved
in marketing the final product. A chassis manufacturer may market
directly to an end user and a final stage manufacturer may also market
to the same end user. Multiple companies involved in the manufacturing
and marketing of medium and heavy duty trucks tend to result in less
integration of the overall process and more customization in comparison
to cars and light duty trucks.

Hybrid drive systems for medium and heavy duty trucks differ in design.
Some systems are primarily designed to be installed during the chassis
manufacturing process by the original equipment manufacturer. Other
systems are designed to facilitate either an installation during the
chassis manufacturing process or in a later stage of manufacturing by
another entity, such as an intermediate or final stage manufacturer.
DUECO installs the plug-in hybrid drive system and interfaces the system
with the chassis and installed equipment during the latter stage of
manufacturing.

Hybrid drive systems for medium and heavy duty trucks can also either be
installed on new vehicles or designed to be retro-fit on an existing
chassis for certain applications. The plug-in hybrid system developed by
DUECO and Odyne can be either installed during the manufacturing process
of a new truck or it can be installed as a retro-fit on an existing
chassis. Retro-fit applications must be carefully engineered,
installation of a system on an existing truck requires sufficient
payload, packaging space and specific chassis data communications
interfaces.

Trucks used by utilities typically drive to a job site and then conduct
stationary operations. In a conventional truck, the diesel or gas
powered engine provides the sole source of propulsion for the vehicle
and is also used to power truck mounted equipment, such as an aerial
device, digger derrick, crane, compressor, winch or other equipment.
While at the job-site, the vehicle may idle for many hours to provide
power for the equipment and provide heat or air conditioning in the cab.
A medium duty truck may average approximately 8 mpg while being driven
and while at idle will typically consume approximately 1 gallon per hour
or more.

A plug-in hybrid electric vehicle (PHEV) is a hybrid vehicle with
batteries that can be recharged by plugging into our nations electric
power grid. It shares the characteristics of both conventional hybrid
electric vehicles and battery electric vehicles, having an internal
combustion engine and batteries for power.

Hybrid systems used in larger trucks, greater than 16,000 pounds have
typically utilized two basic design configurations -- a series design or
a parallel design.

Series design configurations typically use an internal combustion engine
(heat engine) with a generator to produce electricity for both the
battery pack and the electric motor. There is typically no direct
mechanical power connection between the internal combustion engine and
the wheels in an electric series design. Series design hybrids often
have the benefit of having a no-idle system, include an engine-driven
generator that enables optimum engine performance, typically lack a
transmission (on some models), and accommodate a variety of options for
mounting the engine and other components. However, series design hybrids
also generally include a larger, heavier battery; have a greater demand
on the engine to maintain the battery charge; and include inefficiencies
due to the multiple energy conversions.

Parallel design configurations have a direct mechanical connection
between the internal combustion engine and the wheels in addition to an
electric or hydraulic motor to drive the wheels. Parallel design hybrids
have the benefit of being capable of increased power due to simultaneous
use of the engine and electric motor or hydraulic motor, having a
smaller engine with improved fuel economy while avoiding compromised
acceleration power, and increasing efficiency by having minimal
reduction or conversion or power when the internal combustion engine is
directly coupled to the driveshaft, typically through a transmission.
However, parallel design hybrids typically lack a no-idle system and may
have non-optimal engine operation (e.g., low rpm or high transient
loads) under certain circumstances. Existing systems on trucks that have
a gross vehicle weight rating (GVWR) of greater than 19,500 pounds have
traditionally not had a system that combines the benefits of a series
system and a parallel system.

DUECO has produced plug-in hybrid electric trucks, hybrid electric
trucks and conventionally powered trucks for the utility industry.

**The need for plug-in hybrid trucks:**

There are several factors that favor the development and use of plug-in
hybrid trucks:

-   Rising fuel prices.

-   Increased pressure for environmentally friendly and green operations
    with lower carbon emissions.

-   A national priority to reduce foreign oil dependency and increase
    energy security.

-   Increased maintenance costs.

    **Differences between plug-in hybrid electric trucks and hybrid
    electric trucks:**

The following compares some of the benefits of a plug-in hybrid to that
of a conventional hybrid. The primary difference between the plug-in
hybrid and the conventional hybrid is the size of the battery system and
the ability to recharge the battery system from the domestic power grid.

While a plug-in hybrid truck offers some of the same benefits as a
conventional hybrid truck, plug-in hybrids offer advantages in several
areas:

-   Reduced fuel consumption

    -   A plug-in hybrid system has a large battery system that operates
        in a charge depleting mode. The energy from the battery is
        typically used to help propel the vehicle and operate equipment.
        Energy required to recharge the battery is ideally provided by
        the power grid or from regenerative braking, displacing the use
        of petroleum. A vehicle with a large enough battery system could
        potentially eliminate fuel consumption by operating in an all
        electric driving mode for a limited distance and operating in an
        all electric stationary mode. All electric trucks are available
        in Europe, while there are disadvantages such as limited range;
        electric trucks demonstrate that the technology is available for
        emission free operation.

    -   A conventional hybrid typically uses power from the diesel and
        gas engine to recharge the battery or may be recharged from
        regenerative braking. Since much of the energy in the battery
        system results from recharging through the engine, fuel
        consumption may be higher.

-   Reduced emissions, potentially eliminates emissions at the job site.

    -   A plug-in hybrid typically reduces fuel consumption and
        corresponding CO2 emissions during urban driving and has a large
        battery system that can allow the engine to stay off the entire
        day at the job-site. The large battery system is used to power
        truck mounted equipment such as an aerial device or electrically
        powered air conditioning system. Electricity to recharge the
        battery system may be generated by sources with lower emissions;
        some utilities generate a sizable portion of power from
        non-emitting sources. As an example, PG&E generates over 50% of
        their energy from renewable sources.

    -   A conventional hybrid due to a smaller battery system often may
        need to restart the engine at the job-site to recharge the
        battery and may not have enough energy in the battery system to
        power large loads, such as an electrically driven air
        conditioner, with the engine off. When the engine is started
        periodically for short durations in the field to recharge the
        smaller battery system, emission systems may not be at optimal
        effectiveness, potentially resulting in greater emissions of
        harmful pollutants.

-   Lower noise levels during stationary operations.

    -   The engine typically stays off with a plug-in hybrid, resulting
        in lower noise levels. This increases the safety for linemen and
        offers quieter operation for working in residential areas. A
        conventional hybrid may require the engine to restart to charge
        the batteries.

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-   Uses low cost, domestically produced energy from nation's electric
    grid.

    -   Off-sets fuel consumption by displacing petroleum with
        electricity. Ability to recharge at off-peak hours.

-   Maintains a charge or is recharged at any time with conventional
    engine.

    -   While a plug-in hybrid is typically designed to deplete the
        charge in the battery system and recharge through the grid, the
        system can be designed to maintain a minimum state of charge in
        the battery system by recharging through the engine if needed.
        This allows extended operations in the field during situations
        where it is impossible to recharge through the grid. In other
        words, while it is desirable to recharge a plug-in hybrid
        through the grid, it is not necessary to plug it in. Charging
        using the engine is similar to how a conventional hybrid
        recharges.

-   Improved vehicle acceleration.

    -   Electric motors provide additional power and torque to the drive
        train of the truck. The larger battery system of a plug-in
        hybrid provides more energy for extended use of the electric
        motor. The smaller battery system of a conventional hybrid may
        become depleted more quickly, reducing available power when
        needed for climbing grades or other demanding situations.

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-   Standby power capability: option for 9 kW or more exportable power
    for applications such as job site power tools, lighting and
    temporary restoration of power to facilities.

    -   The large battery system of a plug-in hybrid offers the ability
        to export power from the vehicle for external uses. In the more
        distant future it may be possible to export power from the
        vehicle to the grid (Vehicle to Grid, or V2G) to reduce peak
        loads on grid generation systems. The smaller battery system in
        a conventional hybrid typically does not have enough energy for
        export without turning on the engine to provide additional
        power.

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-   Reduced maintenance costs.

    -   Utility vehicles often are serviced based upon hours of engine
        operation. A plug-in hybrid truck has reduced hours of engine
        operation, potentially extending maintenance intervals.

        ***Benefits of Electricity as a Fuel:***

A plug-in hybrid electric truck uses electricity to supplement or
replace the use of fossil fuels. There are several benefits to using
electricity as a fuel.

-   Electricity is typically produced from domestically sourced fuel or
    energy.

-   Feed Stock diversity promotes stability

    -   Hydro, Wind, Bio-Mass, Natural Gas, Coal, Nuclear

-   A portion of our nations existing generation fuel mix is currently
    CO2 free.

    -   Example: approximately 56% of PG&E's energy portfolio is CO2
        free

-   Recent and ongoing legislation promotes cleaner generation mix over
    time

    -   Renewable Portfolio Standard (RPS) legislation enacted in over
        20 states

-   Low fuel cost and minimal additional infrastructure required

    -   Preferential rates for off-peak consumption

-   Projected future renewable energy sources tend to be an off-peak
    energy resource

    -   Wind can often produce more energy at night

        ***Plug-in Hybrid Electric Truck, bucket truck application:***

![](media/image1.jpeg){width="5.948611111111111in"
height="2.9159722222222224in"}

A plug-in hybrid electric medium duty bucket truck is shown above. This
type of truck is typically used by utilities of maintenance and
installation of power lines. The truck has many of the benefits listed
previously. Specifically this vehicle has the following features:

-   Hybrid launch assist and regenerative braking

-   All Electric Operation at a job-site for a typical day

-   35 kWh Energy storage (note: a traditional hybrid may have 2 kWh of
    energy storage)

    -   Electrically powered hydraulic system moves Aerial lift &
        outriggers, this function is also known as E-PTO

    -   Electrically powered air conditioning

-   110/220VAC Electric shore power 9 kW, more optional. Also referred
    to as exportable power.

-   Interfaces with an Allison transmission, the system may also
    interface with other transmissions (testing with other transmissions
    has not been completed).

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-   Modular design with standard components.

-   Enhanced reliability with redundant power for critical operations.

-   Advanced diagnostics & data acquisition available, ability to
    monitor vehicle via satellite

-   Very versatile design:

    -   Basic system design can be used on for a variety of truck weight
        classes from approximately 16,000 pounds to over 33,000 pounds,
        GVWR. Testing of the system on vehicles with a GVWR of 19,500
        pounds and those of 33,000 pounds or greater has begun.

    -   Basic design can be used on a variety of chassis configurations:
        2x4, 4x4, tandem. Testing has begun on the 2 wheel drive
        application, testing on the tandem will begin within the next
        year. Testing on the 4x4 has not been scheduled.

    -   System should be able to interface with multiple power trains
        from multiple chassis manufacturers. Testing has begun on GMC
        and International units and on chassis with gas and diesel
        engines.

-   Ability to tow trailer.

-   No special diagnostic software.

-   Enhances stability of vehicle for aerial device applications.

-   Utilities can power their fleet with their own fuel: Electricity

-   Charges in less than 8 hours using a 220 -- 240 VAC 3 phase power
    source and charging station.

Fuel savings are dependent upon the application and unique duty cycle of
the vehicle. The current vehicle reduces fuel consumption during driving
in urban areas by approximately 10 -- 15%. The vehicle will typically
save 100% of fuel consumption during stationary operations at a job
site, resulting in approximately 1 gallon per hour or more of reduction.
There is little to no fuel savings during higher speed highway driving.

Anticipated fuel savings for a plug-in hybrid in comparison to a
conventional truck depend upon many factors such as the type of system
architecture, size of battery and field application. The following is an
estimate for two types of plug-in systems, one with parallel system
architecture and one with series system architecture. The sample
application is a 20 mile drive, a 5 hour idling period, and an
additional 20 mile drive.

Parallel system with plug-in battery system compared to a conventional
truck:

Stated Assumptions:

> Conventional chassis: approximately 8 mpg fuel efficiency during
> driving and approximately 1 gallon per hour fuel consumption during
> idle.
>
> Parallel system with plug-in: approximately 12% decrease in fuel
> consumption for a plug-in hybrid during driving and 0 gallons per hour
> fuel consumption during idle.
>
> Estimated fuel savings: 56% reduction in fuel consumption, or
> approximately 1400 gallons of fuel saved per year, based upon 250 work
> days per year. Over 15 years, estimated fuel savings exceed 20,000
> gallons per truck.

Series system with plug-in battery system compared to a conventional
truck:

> Stated Assumptions:
>
> Conventional chassis: approximately 8 mpg fuel efficiency during
> driving and approximately 1 gallon per hour fuel consumption during
> idle.
>
> Series system with plug-in: 50% decrease in fuel consumption for a
> plug-in hybrid during driving and 0 gallons per hour fuel consumption
> during idle.
>
> Estimated fuel savings: 75% reduction in fuel consumption, or
> approximately 1875 gallons of fuel saved per year, based upon 250 work
> days per year.

Due to the large amount of savings, medium and heavy duty trucks with
plug-in hybrid technology may be able to reach an attractive
return-on-investment more quickly than other vehicles.

A diagram of a plug-in hybrid electric system for a truck is shown.
Electrical energy is used to increase efficiency while driving through
hybrid launch assist and regenerative braking. Electrical energy also
powers equipment loads at a job site, potentially eliminating the need
to run the engine.

![](media/image2.png){width="6.506944444444445in"
height="3.2881944444444446in"}

**Deployment of Plug-In Hybrid Trucks**

DUECO has started to deploy 25 plug-in hybrid medium duty trucks to
early adopters. A number of major investor owned utilities across the
country have agreed to use the plug-in hybrid bucket trucks in field
evaluations. Ten units have been built as of September 2008; the
remaining units are targeted for completion before the end of the year.
DUECO completed delivery of the first unit to Adams Electric Cooperative
earlier in the year. The unit has been operated by Adams in regular
fleet operations to maintain power lines. Using a large 35 kWh battery
system and interfacing with an Allison transmission, the plug-in hybrid
system provides launch assist, regenerative braking, power for
hydraulically operated equipment, electrically powered air-conditioning,
and 120/220 VAC exportable power. DUECO plans to significantly ramp-up
production of units in 2009 and beyond.

![](media/image3.jpeg){width="3.938888888888889in" height="2.625in"}

In June of 2008, DUECO introduced the first medium duty PHEV digger
derrick. The unit is currently undergoing testing, production is planned
for 2009. Digger derricks are used by utilities to drill holes, set
poles and lift large loads. The demand for power from the plug-in hybrid
system can be very high during certain operations, such as digging in
rocky terrain.

![](media/image4.jpeg){width="3.9895833333333335in"
height="2.6666666666666665in"}

Other manufacturers have begun to test plug-in hybrid drive systems and
all electric power trains.

According to testimony provided by Mr. Eric M. Smith on June 10, 2008,
Eaton was working with the Electric Power Research Institute to develop
commercial PHEV trucks and was also working on the development of a PHEV
for use in utility truck applications.

European truck manufacturers Modec and Smith Electric Vehicles have
produced all electric commercial vehicles.

***Prospects for wider deployment in the near future:***

While plug-in hybrid technology for medium and heavy duty trucks offers
numerous benefits, there are several technical and commercial hurdles
that must be overcome to enable the wide-scale deployment of plug-in
hybrid trucks in the near term. Near term is considered to be 5 years or
less.

DUECO believes that these challenges can be overcome, or largely
mitigated, in the short term with a focused effort and the proper
partnership between industry and government.

***Major technical and commercial hurdles for wide-scale deployment of
plug-in hybrid trucks:***

Although current plug-in hybrid technology has the potential to provide
significant benefits for many applications, short comings in certain
areas decrease the value proposition of plug-in hybrid systems for
medium and heavy duty trucks. Wide scale deployment must be driven by
demand. It is necessary to improve the value proposition by providing
greater performance and fuel savings for less incremental cost.

**Battery system technology:**

Existing battery technology either tends to offer battery systems that
are relatively low cost, but heavy, large and of limited life or are
relatively expensive, but much lighter, smaller and with potentially
longer life. While certain applications of trucks may be able to carry
lower cost, heavier battery systems, it is generally desirable to
minimize battery system weight, size and cost. Development of cost
effective larger advanced battery systems, potentially with energy
storage in excess of 35 kWh, or even in excess of 100 kWh, would improve
the performance and reduce the operating cost of plug-in hybrid trucks.

In order to accelerate deployment of plug-in hybrid trucks using
existing technology, it may be desirable to design battery systems that
are modular, that allow for newer technology battery systems to be
placed on existing vehicles when the original battery system no longer
performs to acceptable standards.

Battery systems for commercial trucks must operate in different
conditions and duty cycles than those in automotive applications. Trucks
must often locate the larger battery system on the exterior of the
truck, exposed to the elements. Trucks may also operate for much longer
duty cycles. Commercial vehicles may be driven 12 -- 16 hours per day,
or operate for multiple shifts. Cars used for commuting may only operate
for a few hours per day.

**System architecture:**

Existing hybrid systems for trucks tend to utilize system architectures
that are similar in many ways to that of existing truck power trains.
The internal combustion engine typically remains operating while the
vehicle is driven to power auxiliary loads such as power steering
systems, brake systems and HVAC systems. Keeping the engine running
while stationary or in low speed stop and go traffic increases fuel
consumption. Some vehicles also do not have a clutch in between the
internal combustion engine and the transmission. While such systems
utilize an automatic transmission, it may be desirable to create a
method to uncouple from the transmission from the engine for improved
regenerative braking or an all-electric drive mode.

In order to improve fuel economy further, different system architectures
that are designed for high volume production in which the internal
combustion engine can remain off during driving need to be developed.
The development of electrically driven sub-systems such as braking,
power steering, HVAC and others need to be brought to high volume
production for medium and heavy duty trucks.

Existing parallel hybrid electric vehicle systems for trucks also tend
to use relatively small electric drive components with relatively low
power output, compared to the power provided by the internal combustions
engine. Larger electric motors and higher capacity battery systems may
allow smaller engines to be used that operate at higher efficiency
without a reduction in vehicle performance, or allow the vehicle to be
driven entirely by electric propulsion. Future system architectures
could also combine the benefits of plug-in hybrid technology, which
requires battery systems with high energy densities, with that of
hydraulic hybrids that have high power densities. The combined plug-in
electric hybrid system with hydraulic hybrid components could offer high
horsepower during acceleration and recapture more energy during braking
while providing enough energy for sustained operation with the engine
off.

Alternative power train architectures, such as a combined
series/parallel hybrid system with a plug-in battery system are also
recommended for consideration. A combined series/parallel system would
allow the vehicle to operate in an all electric mode, a series hybrid
configuration or a parallel hybrid configuration, depending upon which
is most advantageous given operating requirements.

**Utility infrastructure:**

While studies tend to indicate that there is sufficient capacity in the
nation's energy grid at off-peak periods to provide power for charging a
large number of plug-in vehicles, there has been little testing on the
effects of charging a large number of commercial plug-in hybrid trucks.
A commercial fleet of 1000 vehicles, each with a 35 kWh battery system,
could require approximately 25,000 kWh (or 25 MWh) of energy to recharge
overnight. Assessment and testing on the effects of charging a large
number of plug-in hybrid trucks is suggested, along with an assessment
of the interface with Smart Grid technology and associated advanced
metering systems.

Commercial trucks with large battery systems also typically require
higher charging voltages in order to recharge overnight. The lack of
higher voltage circuits in existing truck storage areas could create
barriers and increase the cost to deploy such technology.

**Research into specific medium and heavy duty applications:**

Plug-in hybrid technology for medium and heavy duty trucks has the
potential to reduce fuel consumption and emissions in a wide variety of
applications. Besides aerial utility trucks and delivery trucks, other
truck applications such as those that use cranes, compressors, welding
equipment, or are used in gas utility maintenance, refrigeration,
rescue, refuse and construction may benefit from plug-in hybrid
technology.

Specific information about the energy required for various mobile and
stationary applications is typically not available. In order to optimize
the design of a plug-in hybrid medium or heavy duty truck, it is
recommended that data be collected on actual fleet utilization,
including miles driven, time at idle, power requirements, fuel
consumption and other operational factors. The development of plug-in
hybrid systems for vehicles that operate at especially low efficiency
should be a priority and testing should be undertaken to validate
improved efficiency and reliability.

**Accelerated testing:**

Plug-in hybrid technology for medium and heavy duty trucks is relatively
new and still under development. Assistance is needed to accelerate
testing and reduce the costs of large scale field tests.

**Investment requirements:**

Development of new technology and manufacturing capability requires
significant investment. The cost of capital for development has
increased for a variety of reasons. Assistance such as funded loan
guarantee programs backed by the government can enable companies to
continue development in difficult economic times. Needed investment is
estimated to be well in excess of \$300 million, excluding additional
investment needed for battery development.

Grants can also accelerate investment in the development of new plug-in
hybrid technology. DUECO strongly encourages the Senate to adopt and
support "The Heavy Duty Hybrid Vehicle Act" H.R. 6323 or similar
legislation.

**Low initial production volume and high cost:**

Low initial production volume, combined with high start-up costs can
prohibit companies from pursuing plug-in hybrid technology. As volume
increases, fixed costs are spread over more units, resulting in lower
unit costs. Tax incentives can accelerate demand by lowering the initial
cost to the consumer. DUECO encourages the government to consider tax
incentives that result in lower costs to the market for large PHEV
systems in vehicles with GVWR of 19,500 lbs. or greater and battery
system sizes of up to 60 kWh or greater.

**Additional weight:**

The large battery systems required for medium and heavy duty trucks add
weight to the vehicle. Since newer technology battery systems with lower
mass may not be ready at a commercially viable price in the near term,
heavier batteries with shorter effective life may be the only cost
effective alternative. The additional weight of less advanced battery
systems can cause a truck to exceed 33,000 lbs., the weight limit for
exemption from Federal Excise Tax. The government should consider
waiving FET on vehicles that have plug-in hybrid drive systems. This
will further reduce the effective cost to the consumer and accelerate
deployment of PHEV technology in trucks.

***DUECO's experience with government technology development programs
and how the federal role can be enhanced:***

Federal technology development programs focused on plug-in hybrid
systems for medium and heavy duty trucks have been very limited. DUECO
has not obtained federal assistance in this area, with the exception of
possible general research tax credits. Most of the funding in this area
has focused on the development of plug-in technology for automobiles or
has been focused on large original equipment manufacturers. The medium
and heavy duty truck industry is unique in that many of its products are
often manufactured in multiple stages and brought to market by companies
that are not directly affiliated with the original equipment
manufacturer.

DUECO encourages the federal government to develop programs that help to
specifically fund research into the development of plug-in hybrid
systems for medium and heavy duty trucks used in specific applications
and that are open to final stage manufacturers and other entities.
Assistance with testing, certification, the creation of tax incentives
for customers, and modification of government purchasing policies to
favor the acquisition of more fuel efficient trucks using plug-in hybrid
technology can also accelerate development and deployment.

Commercial fleets consume large amounts of fuel, developing more
efficient trucks that utilize domestically sourced power from the
nation's energy grid would have several benefits.

The development of this technology in the United States would provide
opportunities for job creation, export opportunities, reduce the costs
for businesses competing in a global market, reduce greenhouse gas
emissions and emissions of other pollutants, reduce dependency on
foreign oil, reduce noise within our cities and potentially improve
productivity for certain applications, such as electric crews who could
perform work at night in residential areas.

This is potentially a historic opportunity to develop the technology
needed for the electrification of medium and heavy duty trucks. I ask
for your support of the proposed measures that would help to accelerate
deployment of plug-in hybrid technology for medium and heavy duty trucks
and encourage the development of partnerships between manufacturers,
utilities and the government.

[^1]: Testimony for the U.S. House Committee on Science and Technology,
    Energy and Environment Subcommittee, prepared Statement of Terry
    Penney Technology Manager, Advanced Vehicle Technologies, National
    Renewable Energy Laboratory, June 10, 2008

[^2]: Testimony for the U.S. House Committee on Science and Technology,
    Energy and Environment Subcommittee, prepared Statement of Terry
    Penney Technology Manager, Advanced Vehicle Technologies, National
    Renewable Energy Laboratory, June 10, 2008

[^3]: Committee on Science and Technology, Subcommittee on Energy and
    Environment, U.S. House of Representatives, Hybrid Technologies for
    Medium-to-Heavy Duty Commercial Trucks, Tuesday, June 10, 2008