# Presentation: 098136

## FinancingEverybody Wins

- Financing***Everybody Wins***

- Sharon K. Banks
- _[Sharon@lrapa.org](mailto:Sharon@lrapa.org)__ or call _
- 1-877-285-7272 ext 215

## The Problem

- Each truck consumes 0.8 –1.2 gallons of fuel during each hour of idling, **wasting 1900-2800 gallons** of fuel per year.

**Notes:**
Show the fuel consumed .8 gal vs 7/10ths of a pint

## Where Do Trucks Idle?

- Anywhere they can find a place
-  to park.

## Everybody Wins is a program to put Auxiliary Power Systems

***Everybody Wins**** *is a program to put Auxiliary Power Systems
- on tractor-trailer rigs on the I-5 Corridor.

## Auxiliary Power Systems provide on-board heat, air conditioning and 110 electrical power to trucks while the

**main engine is shut off. **
**Most APSs keep the main engine warm and the truck battery charged.**

## Slide 6

## Over 1 trillion gallons of diesel is wasted each year in the US idling diesel engines.

**0-0.2 gallons per hr**

**0.8-1.5 gallons per hr**

## LRAPA is here

*LRAPA is here*

**Goals:**
- Improve air quality
- Increase jobs in our community
- Save energy
- Start a revolution in the trucking
- industry that will be taken over by
- private enterprise

## BARRIERS

- Very few mechanics are certified to install this
- equipment.
- Very few truck repair and maintenance shops sell
- this technology.
- All the truck drivers want them – mostly for comfort
- and safety reasons, but most can’t afford the initial
- outlay of $5,000-8,000.

## STEP 1

**BORROWING THE MONEY**
**	**LRAPA applied for a low interest loan through Oregon’s Office of Energy to buy 100 units.
- 	The loan will be paid back by monthly payments from owner-operators and fleets.

## STEP 2

**PAYING FOR ADMINISTRATION**
- Oregon has a program where local governments and
- non-profit organizations can “share” a business energy
- tax-credit with a “for-profit” partner.
- The “for-profit” partner pays the agency 25.5% of the
- project cost in cash in exchange for a 35% Oregon
- tax credit.
- This 25.5% credit amounts to over $300,000 to fund staff
- time and marketing efforts.

## STEP 3	

**SELECTING EQUIPMENT**
- LRAPA worked with a team of academic and trucking
- industry advisors to develop a request for proposal.
- After reviewing proposals, we selected 5 companies that
- met our criteria and invited them to set up facilities
- on the corridor in our community.
- So far 11 installation shops are participating.

## STEP 4	

**THE FREE AND CHEAP MARKETING STRATEGY**
- Oregon Trucking Association weekly fax (FREE).
- Contacting local fleets—local fleets have priority (FREE).
- Printed material on placemats and beverage napkins for truck stop cafes and bars (CHEAP).
- Payroll stuffers for fleets to reach owner-operators (CHEAP).
- Ask truck drivers to tell their friends (FREE).

## STEP 5	

**MANAGING THE LOAN PROGRAM**
- Truck drivers can apply online or call LRAPA for an application packet.
- Local bank takes applications over the phone, screens credit, and prepares the paperwork for the loan.
- LRAPA contacts the driver and offers either LRAPA financing (I-5 corridor) or bank financing.
- Driver selects equipment and installer.
- Driver signs loan agreement.
- LRAPA orders equipment “drop shipped” to installer for negotiated price.
- Payments are electronically drafted from the drivers checking account on a monthly basis to pay back the Office of Energy loan.

## STEP 6	

**SAYING THANKS**
- The community of Eugene-Springfield is thanking the truck drivers for caring about the environment by giving them a care package to use while the installation occurs:
- Free hotel stay
- Free rental car
- Movie passes
- Free pizza, coffee, breakfast coupons
- Free bowling lines
- Hats, cups, pens etc.
- A Certificate of Appreciation

## EVERYBODY WINS

**Benefits to the Environment:**
- Reduces air pollution on the I-5 corridor.
- Saves 190,000 gallons of diesel per year per 100 installations.
- Improves public health.
**Benefits to the Local Economy:**
- Promotes business for the trucking repair shops.
- Promotes business for a local bank.
- Establishes a new green business opportunity in
-   the Eugene-Springfield area.

## EVERYBODY WINS

**Benefits to the Trucking Industry**
- Saves $25,000+ during the life of the product.
- Drivers rest better.
- Improves the health of the drivers.
- Drivers are more comfortable, **reducing driver turnover**.
- Improves highway safety: drivers have access to emergency power when stranded.
- Increases the life the the truck engine by 10%.

## Program Cost: FREE

- Truck driver saves more than the cost of
- the monthly payment in fuel. Payback is less than
- 24 months.
- The State of Oregon collects more revenue each
- year because the bottom-line of the trucking
- industry has been improved.

## NEEDS

- $1000-2000 per vehicle for DOCs. DOC would reduce fine PM by 30%.
-  Money for developing training program for community college diesel technology programs.