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42–802PS 2008

HYBRID TECHNOLOGIES FOR MEDIUM- TO

HEAVY-DUTY COMMERCIAL TRUCKS

HEARING

BEFORE THE

SUBCOMMITTEE ON ENERGY AND

ENVIRONMENT

COMMITTEE ON SCIENCE AND

TECHNOLOGY

HOUSE OF REPRESENTATIVES

ONE HUNDRED TENTH CONGRESS

SECOND SESSION

JUNE 10, 2008

Serial No. 110–107

Printed for the use of the Committee on Science and Technology

(

Available via the World Wide Web: http://www.science.house.gov

(II)

COMMITTEE ON SCIENCE AND TECHNOLOGY

HON. BART GORDON, Tennessee, Chairman

JERRY F. COSTELLO, Illinois

EDDIE BERNICE JOHNSON, Texas

LYNN C. WOOLSEY, California

MARK UDALL, Colorado

DAVID WU, Oregon

BRIAN BAIRD, Washington

BRAD MILLER, North Carolina

DANIEL LIPINSKI, Illinois

NICK LAMPSON, Texas

GABRIELLE GIFFORDS, Arizona

JERRY MCNERNEY, California

LAURA RICHARDSON, California

PAUL KANJORSKI, Pennsylvania

STEVEN R. ROTHMAN, New Jersey

JIM MATHESON, Utah

MIKE ROSS, Arkansas

BEN CHANDLER, Kentucky

RUSS CARNAHAN, Missouri

CHARLIE MELANCON, Louisiana

BARON P. HILL, Indiana

HARRY E. MITCHELL, Arizona

CHARLES A. WILSON, Ohio

ANDRE ́ CARSON, Indiana

RALPH M. HALL, Texas

F. JAMES SENSENBRENNER JR.,

Wisconsin

LAMAR S. SMITH, Texas

DANA ROHRABACHER, California

ROSCOE G. BARTLETT, Maryland

VERNON J. EHLERS, Michigan

FRANK D. LUCAS, Oklahoma

JUDY BIGGERT, Illinois

W. TODD AKIN, Missouri

JO BONNER, Alabama

TOM FEENEY, Florida

RANDY NEUGEBAUER, Texas

BOB INGLIS, South Carolina

DAVID G. REICHERT, Washington

MICHAEL T. MCCAUL, Texas

MARIO DIAZ-BALART, Florida

PHIL GINGREY, Georgia

BRIAN P. BILBRAY, California

ADRIAN SMITH, Nebraska

PAUL C. BROUN, Georgia

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT

HON. NICK LAMPSON, Texas, Chairman

JERRY F. COSTELLO, Illinois

LYNN C. WOOLSEY, California

DANIEL LIPINSKI, Illinois

GABRIELLE GIFFORDS, Arizona

JERRY MCNERNEY, California

MARK UDALL, Colorado

BRIAN BAIRD, Washington

PAUL KANJORSKI, Pennsylvania

BART GORDON, Tennessee

BOB INGLIS, South Carolina

ROSCOE G. BARTLETT, Maryland

JUDY BIGGERT, Illinois

W. TODD AKIN, Missouri

RANDY NEUGEBAUER, Texas

MICHAEL T. MCCAUL, Texas

MARIO DIAZ-BALART, Florida

RALPH M. HALL, Texas

JEAN FRUCI Democratic Staff Director

CHRIS KING Democratic Professional Staff Member

MICHELLE DALLAFIOR Democratic Professional Staff Member

SHIMERE WILLIAMS Democratic Professional Staff Member

ELAINE PAULIONIS PHELEN Democratic Professional Staff Member

ADAM ROSENBERG Democratic Professional Staff Member

ELIZABETH STACK Republican Professional Staff Member

TARA ROTHSCHILD Republican Professional Staff Member

STACEY STEEP Research Assistant

(III)

C O N T E N T S

June 10, 2008

Page

Witness List ............................................................................................................. 2

Hearing Charter ...................................................................................................... 3

Opening Statements

Statement by Representative Nick Lampson, Chairman, Subcommittee on

Energy and Environment, Committee on Science and Technology, U.S.

House of Representatives .................................................................................... 5

Written Statement ............................................................................................ 5

Statement by Representative Bob Inglis, Ranking Minority Member, Subcommittee on Energy and Environment, Committee on Science and Technology, U.S. House of Representatives ............................................................... 6

Written Statement ............................................................................................ 7

Prepared Statement by Representative Jerry F. Costello, Member, Subcommittee on Energy and Environment, Committee on Science and Technology, U.S. House of Representatives ............................................................... 9

Statement by Representative F. James Sensenbrenner, Ranking Minority

Member, Subcommittee on Investigations and Oversight, Committee on

Science and Technology, U.S. House of Representatives .................................. 7

Written Statement ............................................................................................ 8

Witnesses:

Mr. Terry Penney, Technology Manager, Advanced Vehicle Technologies, National Renewable Energy Laboratory, Golden, Colorado

Oral Statement ................................................................................................. 10

Written Statement ............................................................................................ 12

Biography .......................................................................................................... 17

Mr. Eric M. Smith, Chief Engineer, Medium Duty Hybrid Electric

Powertrains, Eaton Corporation

Oral Statement ................................................................................................. 18

Written Statement ............................................................................................ 19

Biography .......................................................................................................... 23

Mr. Joseph T. Dalum, Vice President, DUECO

Oral Statement ................................................................................................. 23

Written Statement ............................................................................................ 25

Biography .......................................................................................................... 31

Ms. Jill M. Egbert, Manager, Clean Air Transportation, Pacific Gas & Electric

Company

Oral Statement ................................................................................................. 32

Written Statement ............................................................................................ 33

Biography .......................................................................................................... 35

Mr. Richard C. Parish, Senior Program Manager, CALSTART Hybrid Truck

Users Forum (HTUF), Denver, Colorado

Oral Statement ................................................................................................. 35

Written Statement ............................................................................................ 38

Biography .......................................................................................................... 45

Discussion

The Federal Government’s Role in Promoting Heavy Hybrid Technologies ... 46

Pricing ................................................................................................................... 47

Page

IV

The 21st Century Truck Partnership ................................................................. 47

Scientific and Economic Barriers to Deployment .............................................. 48

Battery Technology and Disposal ....................................................................... 50

Department of Defense Hybrid Efforts .............................................................. 52

Competitive Grants .............................................................................................. 54

Hybridizing Off-road Work Equipment .............................................................. 55

More on Scientific and Economic Barriers to Deployment ............................... 58

Role for the DOE National Laboratories ............................................................ 59

(1)

HYBRID TECHNOLOGIES FOR MEDIUM- TO

HEAVY-DUTY COMMERCIAL TRUCKS

TUESDAY, JUNE 10, 2008

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT,

COMMITTEE ON SCIENCE AND TECHNOLOGY,

Washington, DC.

The Subcommittee met, pursuant to call, at 10:06 a.m., in Room

2318 of the Rayburn House Office Building, Hon. Nick Lampson

[Chairman of the Subcommittee] presiding.

2

3

HEARING CHARTER

SUBCOMMITTEE ON ENERGY AND ENVIRONMENT

COMMITTEE ON SCIENCE AND TECHNOLOGY

U.S. HOUSE OF REPRESENTATIVES

Hybrid Technologies for Medium- to

Heavy-Duty Commercial Trucks

TUESDAY, JUNE 10, 2008

10:00 A.M.–12:00 P.M. 2318 RAYBURN HOUSE OFFICE BUILDING

Purpose

On Tuesday, June 10 the Subcommittee on Energy and Environment of the Committee on Science and Technology will hold a hearing to receive testimony on the

state of development of hybrid electric technologies for medium- to heavy-duty commercial vehicle applications and the role of the Department of Energy (DOE) in supporting research and development of these systems. The Committee will also receive

testimony on a discussion draft of legislation to be introduced by Rep. Sensenbrenner.

Witnesses

Mr. Terry Penney, Technology Manager, Advanced Vehicle and Fuel Technologies,

National Renewable Energy Laboratory

Mr. Eric M. Smith, Chief Engineer, Hybrid Medium Duty Truck, Eaton Corporation

Mr. Joseph Dalum, Vice President, Dueco Inc.

Ms. Jill Egbert, Manager, Clean Air Transportation, Pacific Gas & Electric Company (PG&E)

Mr. Richard Parish, Senior Program Manager, CALSTART Hybrid Truck Users

Forum (HTUF)

The witnesses will discuss the considerable potential for energy savings and emissions reductions through deployment of hybrid electric systems in heavy duty

trucks, the range of hybrid heavy truck technologies and applications, the major

technical and market barriers in deploying these technologies, and their experience

with the federal energy research programs.

The witnesses will also offer their views on the draft legislation to authorize a

federal research and demonstration program on hybrid technologies for heavy-duty

vehicles.

Background

There are significant potential economic and environmental benefits from improving medium- to heavy-duty vehicles through the electrification of drive trains and

auxiliary power systems. Hybrid technologies (ex: battery and hydraulic) are being

developed for a wide range of commercial vehicle platforms such as package delivery

vans, refuse collection trucks, large utility ‘‘bucket trucks,’’ military and construction

vehicles, and even long-haul tractor trailer trucks. Conventional large truck models

share the common characteristics of relatively low fuel efficiency and high emissions

profiles since they must rely solely on a diesel or gasoline internal combustion engine for power. These inefficiencies are especially evident in trucks that require frequent starts and stops, or long periods of non-drive time engine idling in order to

provide power for auxiliary systems such as bucket lifters and other work-related

equipment, off-board power tools, air conditioning, and refrigeration. By switching

some driving and auxiliary loads to hybrid systems large trucks stand to save a considerable amount of fuel and greatly reduce their emissions.

For defense applications, hybrid systems provide the added benefit of generating

very little noise, providing power for radar and weapons systems, reducing overall

weight and maintenance requirements, and allowing vehicles to run much longer beVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00007 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
4

tween fueling. In fact, military requirements have been a major driver of innovation

in hybrid technologies for heavy vehicles.

The power demands on heavy duty trucks are as varied as the applications. While

several truck companies are testing hybrid models, significant technical hurdles remain, and there is no one-size-fits-all hybrid solution for the entire sector. Through

the course of an average drive cycle the charging and discharging of a hybrid electric or hydraulic system on a trash truck, with its frequent starts and stops, dumpster lifting, and trash compaction, will be considerably different than that of a utility truck which may idle in one place for several hours in order to operate the bucket lifting boom and other equipment. Long haul tractor trailer rigs (Class 8) may

prove even more challenging since they seldom brake during a drive cycle, providing

little opportunities for battery systems to recharge. The next generation of trucks

may also include plug-in hybrid electric models which can charge larger banks of

batteries through direct connection to the electricity grid.

While the total number of these vehicles is small compared to passenger vehicles,

their fuel consumption and emissions justify the high costs of development of hybrid

models. 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). Estimates done by the Eaton Corporation show that as little as

10,000 hybrid electric trucks could reduce diesel fuel usage by 7.2 million gallons/

year (approx. one million barrels of oil), reduce NOΧ emissions by the amount equivalent to removing New York City’s passenger cars for 25 days, and reduce carbon

dioxide emissions by 83,000 tons.

The energy storage options for hybrid trucks generally include batteries, hybrid

hydraulic systems, and ultracapacitors. Batteries receive the most attention and research funding because of their applicability throughout the transportation sector.

To expand the use of electricity in the vehicles sector batteries must be smaller,

lighter, cheaper, and more powerful. Vehicle batteries typically fall into one of three

families of technologies: lead-acid, nickel metal hydride (NiMH), and lithium-ion (LiIon). Lead-acid batteries have many advantages including their relative simplicity

and low cost, wide-scale availability, domestic manufacturing capacity, and established recycling infrastructure. NiMH batteries are found in the current generation

of hybrid vehicles and will be the battery of choice for many of the first generation

heavy hybrid trucks. However, high weight and low power density are significant

issues for both lead-acid and NiMH batteries, and they may not be optimal for future plug-in hybrid applications. Many in the industry believe the future of hybrids

depends on breakthroughs in new battery technologies, such as the lithium ion (Liion) batteries with their low weight and high power density. But, in addition to solving remaining technical issues such as heat management, the costs of manufacturing Li-ion batteries remain prohibitively high for large-scale deployment in vehicles. There is also concern that the U.S. is falling behind in the race to develop and

manufacture batteries, and a significant effort is underway to build up a domestic

supply chain.

The Department of Energy has funded research in this area over the years, most

recently through the 21st Century Truck Partnership which conducts R&D through

public-private efforts with the trucking industry. Other federal agencies involved in

the 21st Century Truck Partnership include the Department of Defense, the Department of Transportation, and the Environmental Protection Agency. Federal research

capabilities exist in DOE laboratories such as the National Renewable Energy Laboratory and Argonne National Laboratory, the EPA’s National Vehicle and Fuel

Emissions Laboratory, and the Army’s National Automotive Center. Despite the potential economic and environmental benefits of hybrid trucks and the considerable

technical hurdles that remain, the 21st Century Truck Partnership is facing decreased funding as the Administration chooses to shift the focus of federal research

to the passenger vehicle market.

Draft Legislation

Representative James Sensenbrenner will have draft legislation available for the

Committee and witnesses to review. Specifically, the draft legislation would accelerate research of plug-in hybrid technology in trucks by creating grants for manufacturers to build, test, and ultimately sell plug-in hybrid utility and delivery trucks.

The Act would also encourage DOE to expand its research in advanced energy storage technologies to include heavy hybrid trucks as well as passenger vehicles.

5

Chairman LAMPSON. The hearing will come to order. I want to

welcome the Members of the Subcommittee and our distinguished

panelists to today’s hearing on hybrid technologies for medium- to

heavy-duty commercial trucks.

With concerns about our over-reliance on foreign oil, the skyrocketing costs of fuels, and the effects of our transportation sector

on air quality and carbon emissions, technological strides in the

commercial truck market stand to offer tremendous benefits to our

economic and environmental health.

Though it is easy to overlook, these vehicles are pervasive

throughout our economy. From school buses to trash collectors,

utility trucks to delivery vans, long-haul tractor trailers to road

work equipment, one would be hard pressed to identify an aspect

of our daily lives that didn’t at some point depend on medium-toheavy trucks, heavy-duty trucks. They also represent a substantial

portion of the U.S. fuel consumption and emissions.

The truck industry is due for a major technological shift. But advances in this sector don’t come easily, and there is no one-size-fitsall solution. The demands on these vehicles are as varied as their

uses. Consequently, there remains a need for a robust federal program to partner with industry and develop this wide range of hybrid platforms.

The focus for hybrid vehicle technology development has largely

been on passenger vehicles. Passenger vehicles have paved the way

both in terms of advancing the technologies and expanding public

awareness of capabilities of hybrid systems. You need only to visit

your local dealership and see the waiting lines and lists for hybrid

models to know that the general public is serious about saving fuel

and reducing emissions.

But there is a larger market for hybrids beyond the family automobile. Reducing fuel costs and meeting environmental regulations

is vital to the bottom line of any company that relies on heavy

trucks. Yet the Administration has chosen to shift resources to the

passenger automobile and away from its 21st Century Truck Program. Given the significant gains to be made in the commercial

truck sector and its indispensable role in our economy, we should

ensure that federal research and development programs continue to

address the need to improve fuel efficiency of heavy-duty vehicles.

We are joined by our colleague, Mr. Sensenbrenner, Ranking Republican Member of the Investigations and Oversight Subcommittee, who will soon introduce legislation to enhance the federal role in the development of heavy hybrid vehicles. I would like

to thank him for elevating this subject to the level that it deserves,

and I look forward to the opportunity to consider his legislation at

the appropriate time.

And at this time I would yield to my distinguished colleague

from South Carolina, our Ranking Member, Mr. Inglis, for an opening statement.

[The prepared statement of Chairman Lampson follows:]

PREPARED STATEMENT OF CHAIRMAN NICK LAMPSON

I want to welcome Members of the Subcommittee and our distinguished panelists

to today’s hearing on hybrid technologies for medium- to heavy-duty commercial

trucks.

6

With concerns about our over-reliance on foreign oil, the skyrocketing costs of

fuels, and the effects of our transportation sector on air quality and carbon emissions, technological strides in the commercial truck market stand to offer tremendous benefits to our economic and environmental health.

Though it is easy to overlook, these vehicles are pervasive throughout our economy. From school buses to trash collectors, utility trucks to delivery vans, long-haul

tractor trailers to road work equipment, one would be hard pressed to identify an

aspect of our daily life that did not at some point depend on medium- to heavy-duty

trucks.

They also represent a substantial portion of the U.S. fuel consumption and emissions.

The truck industry is due for a major technology shift. But, advances in this sector don’t come easy, and there is no one-size-fits all solution. The demands on these

vehicles are as varied as their uses. Consequently, there remains a need for a robust

federal program to partner with industry and develop this wide range of hybrid

platforms.

The focus for hybrid vehicle technology development has largely been on passenger vehicles. Passenger vehicles have paved the way both in terms of advancing

the technologies and expanding public awareness of the capabilities of hybrid systems. You need only to visit your local dealership and see the waiting lists for hybrid models to know that the general public is serious about saving fuel and reducing emissions.

But there is a larger market for hybrids beyond the family automobile. Reducing

fuel costs and meeting environmental regulations is vital to the bottom line of any

company that relies on heavy trucks. Yet, the Administration has chosen to shift

resources to the passenger automobile and away from its 21st Century Truck Program. Given the significant gains to be made in the commercial truck sector, and

its indispensable role in our economy, we should ensure that federal research and

development programs continue to address the need to improve fuel efficiency of

heavy-duty vehicles.

We are joined by our colleague Mr. Sensenbrenner, Ranking Republican Member

of the Investigations and Oversight Subcommittee, who will soon introduce legislation to enhance the federal role in the development of heavy hybrid vehicles. I would

like to thank him for elevating this subject to the level it deserves, and I look forward to the opportunity to consider his legislation.

At this point I will turn to the distinguished Ranking Member of this subcommittee, Mr. Inglis for his opening statement.

Mr. INGLIS. Thank you, Mr. Chairman. Thank you for holding

this hearing.

Transportation needs innovation. The transportation sector is our

primary consumer of oil and exhales more carbon dioxide emissions

than any other source. The more we pay at the pump each week,

the easier it is to realize the obvious benefits of alternatives to oil.

It seems that rising oil prices rouse our attention to ways that we

could ‘‘do energy’’ a different way. This hearing is a case in point.

In previous hearings of this subcommittee we have talked about

reinventing the car. We have heard the economic, environmental,

and national security benefits that will accrue to pursuing hybrid,

battery, and hydrogen technologies to power tomorrow’s cars.

Today we will hear from a number of experts about the mediumand heavy-duty commercial truck market and its needs for the

same innovative focus. Applications such as hybrid engines and

battery-powered auxiliary systems promise a significant reduction

in oil consumption and greenhouse gas emissions, but technological

hurdles stand in the way of realizing those benefits.

I join with the Chairman in thanking Mr. Sensenbrenner for introducing this draft legislation that would steer federal dollars toward research, development, and demonstration in the areas of

commercial truck hybrid technologies. I would be interested to hear

from our witnesses as to whether current oil prices are enough incentive for heavy truck companies to invest in these technologies,

7

or if there is a necessary role for the Federal Government to assist

in overcoming these technological hurdles.

Thank you again, Mr. Chairman. I look forward to hearing from

our witnesses on their perspectives in this, on their perspectives in

this legislation and suggestions as to ways we might improve it.

[The prepared statement of Mr. Inglis follows:]

PREPARED STATEMENT OF REPRESENTATIVE BOB INGLIS

Thank you for holding this hearing, Mr. Chairman.

Transportation needs innovation. The transportation sector is our primary consumer of oil, and exhales more carbon dioxide emissions than any other source. The

more we pay at the pump each week, the easier it is to realize the obvious benefits

of alternatives to oil. It seems that rising oil prices rouse our attention to ways we

could ‘‘do energy’’ a different way. This hearing is a case in point.

In previous hearings of this subcommittee, we’ve talked about reinventing the car.

We’ve heard the economic, environmental, and national security benefits that will

come from pursuing hybrid, battery, and hydrogen technologies to power tomorrow’s

cars.

Today, we’ll hear from several experts that the medium- and heavy-duty commercial truck market needs the same innovative focus. Applications such as hybrid engines and battery-powered auxiliary systems promise a significant reduction in oil

consumption and greenhouse gas emissions, but technological hurdles stand in the

way of realizing those benefits.

I’d also like to thank Mr. Sensenbrenner for introducing draft legislation that

would steer federal dollars toward research, development, and demonstration in the

area of commercial truck hybrid technologies. I’d be interested to hear from our witnesses as to whether current oil prices are enough incentive for heavy truck companies to invest in these technologies, or if there’s still a necessary role for the Federal

Government to assist in overcoming these technological hurdles.

Thank you again, Mr. Chairman. I look forward to hearing from our witnesses on

their perspectives of this legislation and any suggestions they may have to improve

it.

Chairman LAMPSON. Thank you, Mr. Inglis.

And now I would like to recognize Mr. Sensenbrenner for a statement.

Mr. SENSENBRENNER. Thank you very much, Mr. Chairman.

New taxes are not the only solution to climate change. We need

to focus our economy as we work to reduce our emissions. We can

over regulate our businesses, cripple our economic development,

and watch as China and India race past us, sputtering greenhouse

gases along the way. Or Congress can create incentives that encourage the development of new technologies that will reduce our

emissions, foster economic development, and allow U.S. manufacturers to export their energy-saving technologies worldwide.

A honking motorcade of trucks around the Capitol last month

flashed signs that read, ‘‘When Trucks Stop, America Stops.’’ Commercial traffic is truly vital to the American economy, and the fuel

costs for trucks directly affects costs for all Americans. The additional price of their fuel raises the price of our food, health care,

manufacturing, retail, waste removal, and other goods and services.

And while our economy would not survive without them, trucks

consume huge quantities of oil, which raises the cost of their businesses and raises our dependence on oil and injects greenhouse

gases into the environment.

The answer is not to burden these businesses already strained by

high fuel costs with additional taxes for the CO2 they release. Instead, we need to encourage the development and introduction of

technologies that will reduce their fuel consumption.

8

The technologies we need already exist. Everybody has seen hybrid cars. This technology, which combines gas and electric motors

for a powerful and efficient engine, is even more practical in trucks.

Even though there are fewer trucks on the road, trucks use more

fuel.

Utility trucks, for example, typically drive short distances to and

from a work site, but sit idle for hours while on site. A plug-in hybrid truck would use less fuel getting to and from the site and

would operate without any fuel on the site. Ultimately, a plug-in

hybrid engine in a utility truck could use up to 60 percent less fuel.

Delivery trucks constantly stop and go. Hybrid engines excel at

this type of driving because the engine can essentially turn off during short accelerations, while coasting and while it is at a stop.

Developing these technologies will have benefits beyond fuel savings. By making our trucks more efficient, we will make our goods

and services more affordable and then become leaders in these new

technologies. Like America, Asia is faced with rising fuel costs.

Their trucking fleets, like ours, are currently powered by diesel. In

Europe the price of diesel has risen to nearly $9 a gallon. This has

led to a strike. Spanish truckers are currently holding a ‘‘snail protest,’’ essentially blockading the highways of Spain and Southern

France by inching along the road. Anti-protest demonstrators, fearing that food and other goods could become scarce, have rebelled

violently by slashing truck tires and smashing their windshields. If

America’s companies are the first to develop and commercialize

products such as the topic of the hearing today, not only can we

avoid a similar fate, but we can export these technologies worldwide.

By helping American manufacturers research and commercialize

new technologies, we can strengthen our economy, reduce our dependence on foreign oil, and lower our emissions. The legislation

we will discuss today is a narrow example of how technology, and

not taxes or carbon offset credits, can help solve our energy crisis.

The legislation would accelerate research of plug-in hybrid technology in trucks by creating grants for manufacturers to build, test,

and sell plug-in hybrid utility and delivery trucks. The Act would

also encourage the Department of Energy to expand its research in

advanced energy storage technologies to include heavy hybrid

trucks as well as passenger vehicles. This bill will put plug-in hybrid trucks on the road and help advance research and accelerate

commercialization of this important technology.

I thank the Chairman for holding this hearing and the witnesses

for lending their expertise to this effort, and yield back the balance

of my time.

[The prepared statement of Mr. Sensenbrenner follows:]

PREPARED STATEMENT OF REPRESENTATIVE F. JAMES SENSENBRENNER JR.

New taxes are not the only solution to climate change. We need to focus on our

economy as we work to reduce our emissions. We can over-regulate our businesses,

cripple our economic development, and watch as China and India race past us—

sputtering greenhouse gases along the way—or Congress can create incentives that

encourage the development of new technologies that will reduce our emissions, foster economic development, and allow U.S. manufacturers to export their energy-saving technologies worldwide.

A honking motorcade of trucks around the Capitol last month flashed signs that

read, ‘‘When Trucks Stop, America Stops.’’ Commercial traffic is truly vital to the

9

American economy, and the fuel costs for trucks directly affect costs for all Americans. The additional price of their fuel raises the price of our food, health care, manufacturing, retail, waste removal, and other the goods and services. While our economy would not survive without them, trucks consume huge quantities of oil, which

raises the cost of their business, increases our dependence on oil, and injects greenhouse gases into our environment.

The answer is not to burden these businesses, already strained by high fuel costs,

with additional taxes for the carbon dioxide they release. Instead, we need to encourage the development and introduction of technologies that will reduce their fuel

consumption.

The technologies we need already exist. Everyone has seen hybrid cars. This technology, which combines gas and electric motors for a powerful and efficient engine,

is even more practical in trucks. Even though there are fewer trucks on the road,

trucks use more fuel.

Utility trucks, for example, typically drive short distances to and from a work site,

but sit idle for hours while on site. A plug-in hybrid truck would use less fuel getting to and from the site, and could operate without any fuel while on site. Ultimately a plug-in hybrid engine in a utility truck could use up to 60 percent less

fuel.

Delivery trucks constantly stop and go. Hybrid engines excel at this type of driving because the engine can essentially turn off during short accelerations, while

coasting, and when it is at a stop.

Developing these technologies will have benefits beyond fuel savings. By making

our trucks more efficient, we will make our goods and services more affordable and

become leaders in these new technologies. Like America, Asia is faced with rising

fuel costs. Their trucking fleets, like ours, are currently powered by diesel. In Europe, the price of diesel has risen to nearly $9 per gallon. This has lead to a strike.

Spanish trucks are currently holding a ‘‘snail protest,’’ essentially blockading the

highways of Spain and Southern France by inching along the road. Anti-protest

demonstrators, fearing that food and other good could become scarce, have rebelled

violently by slashing truck’s tires and smashing their windshields. If American companies are the first to develop and commercialize these products, not only can we

avoid a similar fate, we can export these technologies worldwide.

By helping American manufacturers research and commercialize new technologies, we can strengthen our economy, reduce our dependence on foreign oil, and

lower our emissions. The legislation we will to discuss today is a narrow example

of how technology, not taxes, can solve our energy crisis. The legislation would accelerate research of plug-in hybrid technology in trucks by creating grants for manufacturers to build, test, and sell plug-in hybrid utility and delivery trucks. The Act

would also encourage the Department of Energy to expand its research in advanced

energy storage technologies to include heavy hybrid trucks as well as passenger vehicles. This bill will put plug-in hybrid trucks on the road and help advance research and accelerate commercialization of an important technology. I thank the

Chairman for holding this hearing and the witnesses for lending their expertise to

this effort.

Chairman LAMPSON. Thank you, Mr. Sensenbrenner.

I ask unanimous consent that all additional opening statements

submitted by the Committee Members be included in the record.

Without objection, so ordered.

[The prepared statement of Mr. Costello follows:]

PREPARED STATEMENT OF REPRESENTATIVE JERRY F. COSTELLO

Mr. Chairman, I appreciate the Subcommittee giving attention to this matter, it

is particularly salient topic as gas and diesel prices continue to rise every day.

Hybrid technology for passenger cars has received an increasing amount of media

and consumer attention recently as gas prices continue to soar. As alternative fuel

technologies advance for passenger vehicles, I am pleased that this committee has

turned its attention to the status of renewable technologies for medium- and heavyduty trucks.

There are many benefits to hybrid technologies for heavy-duty trucks, and variety

of electric vehicles systems currently exist to serve in various capacities. The crosscountry shipping industry, the military, utility companies and the construction industry can all benefit from the expansion of hybrid technologies. A manufacturer in

my district in Southern Illinois, BNSF Railway and Vehicle Projects LLC, are developing a switch locomotive powered by a hydrogen fuel cell. This technology can help

10

these industries to not only to lower their carbon footprints, but to also reduce their

expenses by decreasing the amount of gasoline for their fleets of medium- and

heavy-duty trucks.

At this critical time when Congress will embark upon major climate change legislation in the near future, we must ensure that funding is dedicated to overcoming

the existing challenges that face this developing technology. Although the Department of Energy once funded a program to develop and test early heavy hybrid technologies that yielded encouraging results, the Bush Administration has since terminated the funding.

As we will hear today, many utility companies currently use hybrid trucks in

their fleet today. If additional funding is invested, the foundation of technology exists to launch hybrid technologies into the mass-consumer level. With the proper resources, the United States can take advantage of the opportunity to become a leader

in hybrid technology.

Thank you, Mr. Chairman, for my time; I look forward to hearing from our witnesses today. I yield back.

Chairman LAMPSON. It is my pleasure to introduce our witnesses

this morning. Terry Penney is the Technology Manager for Advanced Vehicle Technologies and the Renewable Fuels Science and

Technology Directorate at the National Renewable Energy Laboratory. Mr. Eric Smith is the Chief Engineer for Medium-Duty Hybrid Electric Powertrains for the Eaton Corporation. Joseph Dalum

is the Vice President of Dueco, and Ms. Jill Egbert is the Manager

of the Clean Air Transportation Department at the Pacific Gas and

Electric Company, PG&E. Mr. Richard Parish is the Senior Program Manager of the Hybrid Truck Users Forum at CALSTART.

You will each have five minutes for your spoken testimony. Your

written testimony will be included in the record for the hearing.

When you all complete your testimony, we will begin with our

rounds of questions. Each Member will have five minutes to question the panel.

Mr. Penney, would you please begin.

STATEMENT OF MR. TERRY PENNEY, TECHNOLOGY MANAGER,

ADVANCED VEHICLE TECHNOLOGIES, NATIONAL RENEWABLE ENERGY LABORATORY, GOLDEN, COLORADO

Mr. PENNEY. Thank you, Mr. Chairman, and other Members for

this opportunity to talk about the status and potential of heavy hybrid trucks.

NREL has been working for the last 15 years with partners in

government, other national labs, and industry on both light and

heavy-duty hybrids. Despite the tremendous progress that has been

made, I believe that targeted R&D and purchase incentives are still

needed so these trucks can grow in volume and play a prominent

role in the marketplace.

Primarily, because of escalating fuel prices and tougher emission

standards, the cost in operating and producing heavy-duty vehicles

are rising at alarming rates. But there are reasons to be optimistic.

Despite the fact that more fuel is being used by our light-duty car

fleet, and we are working hard on those vehicles too, we should not

ignore advanced heavy truck technologies across many applications

that can also significantly reduce their fuel use and subsequent

emissions.

To frame the opportunity, first a little background. About 80 percent of all our goods are transported by truck, and last year Class

one through Class eight trucks consumed about 40 billion gallons

of diesel fuel. The good news, hybrid trucks in various forms from

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research prototypes to recent early commercialization products

have demonstrated the potential to reduce fuel costs anywhere

from a few percent to 50 to 60 percent.

Original equipment manufacturers, OEMs, and truck owners are

learning that their exact savings depend on three things: the application, the duty cycle, and the way it is driven, and of course, the

distance it travels between stop and go.

For example, a typical delivery truck using a hybrid drive system

could save more than a thousand gallons of fuel per year in comparison to a conventional truck. We believe almost every truck application can benefit from hybrid drive of some sort and other system improvements.

In addition to NREL’s fleet testing, we have shown that hybrids’

overall operating and maintenance costs per mile can be lower, too,

in part because of fewer brake replacements and less downtime,

which help lower the cost differential between conventional and hybrid drive trains.

Let us quickly review the potential for hybrids and or perhaps

plug-in hybrid truck applications by class, and if you have my testimony in front of you, take a look at page two and page three,

where I describe the classes one through eight, and you will see

that classes one through four are your typical minivans, utility

vans, pickup trucks, five includes a shuttle or city delivery and a

bucket truck. Class six is a beverage or a school bus. Class seven

is refuse haulers, furniture delivery, city transit buses, for example,

and of course, Class eight is dump trucks, cement trucks, and line

haul semis.

Of course, military vehicles of all classes and sizes could also

benefit from hybridization, and several have already been demonstrated as you are well aware.

I would like to draw your attention to the Class eight trucks.

They use, and this is on page three, you will notice that they use

as much diesel fuel as all other truck classes combined, and until

recently many believed there was little hope in hybridizing line

haul semis because they don’t have much stop and go, which is

classic of the hybrid cycle. However, even in this class, truck OEMs

are finding opportunities for fuel savings, even if only in the single

digits, because hybridization and other system improvements can

yield tremendous savings.

Today hybrid trucks are just starting to hit the market in various service applications, most notably transit buses, though for

most applications it is tough, it is a tough sell. This is probably because the cost premiums which result from limited current production quantities and the need for further improvement and establish

the system reliability, economics, and performance of various truck

components.

Along with continuing credits and incentives, we need to continue our R&D programs to improve the performance and economics of these hybrid systems. The National Academy of Sciences recently completed a detailed examination of the 21st Century Truck

Partnership Projects in this area, and that report is expected to be

delivered to the Department of Energy in the next few weeks. I

would encourage you to review its findings.

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There are approximately 18 million commercial vehicles on the

road, every kind of vehicle represents a different set of demands,

and these, in turn, determine vehicle size, configuration, and each

with a different duty cycle. As a result, there are many unique

powertrain solutions. A hybrid is not just a hybrid. Today there are

a handful of demonstration hybrid trucks, many supported by federal and State cost-sharing programs and are shedding life on both

opportunities and challenges, but production volumes are still very

low and not very high since system costs from drive trains through

energy storage systems to power electronics must be continued to

be reduced.

So with these considerations in mind, what needs to be done?

First, we must understand the unique duty cycle of the hybrid vehicle. Then we need to understand how these new powertrain

topologies can boost miles per gallon or ton miles delivered. We

must take an overall systems approach to greater efficiency. We

also need to work on advanced combustion, heat recovery, energy

storage technology, especially batteries and ultracapacitors, to improve the cost, performance, and life and thermal abuse tolerance.

Finally, we need to improve the overall performance and costs associated with the power of electronics module and electric drive

motor, improving performance, life, and reliability issues through

advanced thermal control.

Despite a limited DOE budget, the DOE Vehicle Technology Program is actively engaged in pursuing many of these technical

areas. With DOE’s support of NREL, we employ heavy hybrid vehicle R&D testing, analysis to understand and solve many technical

issues and overcome these barriers while working with OEMs and

their suppliers.

For example, NREL’s ReFUEL lab tests advanced fuels and double, and heavy-duty engines for advanced heavy hybrid vehicles

and is home, unique testing, and measurement equipment. With

industry partners we also conduct field evaluations of transit

buses, trucks, idle-reduction technologies. We design test plans,

gather on-site data, and publish our results. Education, getting the

word out, helping industry and fleet owners learn about what actually works and what doesn’t, has been a hallmark of our efforts.

The government’s commitment to funding, finding solutions for

supporting advanced R&D and government industry partnerships

and by encouraging incentives is absolute key.

Thank you so much.

[The prepared statement of Mr. Penney follows:]

PREPARED STATEMENT OF TERRY PENNEY

Mr. Chairman, I want to thank you for providing this opportunity to talk about

the status and potential of heavy-duty hybrid trucks in the United States, and the

research and development and policy support that is needed to give them a more

prominent role in the marketplace. As groups like the Hybrid Truck Users Forum

have recently noted, hybrid trucks are right ‘‘on the cusp’’ of production in mediumand heavy-duty commercial markets, and there is much we can do to tip the balance

in their favor, and in ours, in terms of achieving greater energy security and lessening our reliance on imported fuels.

I am the Technology Manager for Advanced Vehicle Technologies in the Renewable Fuels Science and Technology directorate at the National Renewable Energy

Laboratory in Golden, Colorado. NREL is the U.S. Department of Energy’s primary

laboratory for R&D in renewable energy and energy efficiency technologies, and we

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are dedicated to helping the Nation develop a full portfolio of technologies that can

meet our energy needs.

It is an honor to be here and to speak with you today. I want to commend the

Committee for its interest in exploring ways to reduce the use of imported petroleum in the commercial sector, curb emissions associated with burning fossil fuels

for transportation, and increase the competitiveness of U.S. manufacturers and

truck fleets through greater use of hybrid trucks.

Despite the progress we have achieved in fuel efficiency and emissions reductions

over recent years, the costs associated with producing and operating our heavy-duty

fleets have risen at alarming rates. There exists today great potential from several

heavy-duty hybrid truck technologies to significantly reduce fuel consumption and

emissions. This should in turn improve the economic picture for U.S. truck manufacturers, suppliers, fleets, and customers alike.

First, a little background. Approximately 80 percent of all the goods transported

in the United States today are moved by truck. In all, the United States consumed

about 140 billion gallons of gasoline and about 40 billion gallons of diesel fuel for

on-road transportation in 2004, according to the Department of Energy. The U.S.

now imports more than 60 percent of the crude oil it uses. Retail gasoline and diesel

fuel prices have reached record highs in recent months, and the retail price of diesel

is well over $4 per gallon in most parts of the Nation.

Given the current situation, we see considerable potential for hybrid trucks to reduce fuel use, and thus costs, from five percent at minimum, to as much as 50 percent to 60 percent at the high end. Although exact reductions depend on the actual

use of the truck—and specifically, the way it’s driven and the distance traveled between stops—there is virtually no truck application that cannot benefit from a hybrid drive train and related system improvements. Potential applications include

shuttle and school buses, military vehicles, utility trucks, bucket trucks, beverage

delivery and parcel delivery trucks, refuse haulers, and some large Class 8 vehicles.

Because trucks generally use much more fuel per year than passenger vehicles, the

overall savings potential is very significant (see illustrations that follow).

Plug-in hybrid trucks are on the horizon, as well. Plug-in hybrid systems could

benefit not only industry and the environment, they perhaps could alter the nature

of our utility grids, by providing stored energy and a form of mobile distributed energy generation. Before we can begin to realize these benefits widely, however, we

must address some remaining issues surrounding hybrid and plug-in hybrid technologies.

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Heavy-Duty Hybrid Trucks: Some Major Issues

An article in the April 27, 2008, edition of the New York Times noted that commercial vehicles, particularly those making frequent stops, should be the ‘‘killer’’ application for hybrid technologies, because hybrids often work best in the kind of

stop-and-go conditions that delivery trucks and refuse haulers experience. Despite

this potential, there remain relatively few hybrid trucks on the road. The primary

reasons for this are the costs of the hybrid systems, the limited commercial production to date, and the need to further improve the economics and performance of energy storage, power electronics, auxiliary loads and engine idling systems.

Light-duty hybrid-electric vehicles (HEVs), such as the Toyota Prius and Ford Escape Hybrid, have gained public attention and some market momentum in recent

years. The added price of hybrid systems have been somewhat offset by tax policies

at the federal and the State levels. It should be noted that light duty and heavy

duty applications can be much different in overall design and individual components. The price premium for hybrid systems will be proportionally greater for large

commercial vehicles, because of their size and complexities. These higher costs have

slowed widespread acceptance of these technologies, potential fuel savings notwithstanding.

Hybrid technologies improve fuel economy, primarily by turning off the engine

when idling, such as when coasting or at a stop. They use batteries and electric motors for short accelerations, recharge the batteries by recovering the energy used in

braking, and use batteries for auxiliary loads such as cabin cooling. The combustion

engines in HEVs can thus be smaller than those in conventional heavy vehicles. Our

fleet testing has shown how overall maintenance and operating costs per mile can

also be lower for hybrids, in part because of a decrease in brake replacement costs.

The energy storage system is the most critical component for hybridization and

electric vehicles generally. The energy storage system must be affordable, safe, and

durable enough to last through the major portion of the vehicle’s life. Since vehicles

operate at many different climates and temperatures, energy storage systems must

be able to perform well at low temperatures and not quickly degrade at high temperatures. Current commercial light duty and heavy duty vehicles use Nickel Metal

Hydride (NiMH) batteries, mostly from Japanese manufacturers. Research and development on advanced energy storage systems, such as lithium ion batteries and

ultracapacitors, is expanding, with hybrid electric vehicle systems being seen as a

primary use.

One major concern is the domestic production of batteries. Relying on a few foreign sources of battery production (Japan, Korea, China, and France) could increase

costs and create new energy security concerns. Domestic production of energy storage materials and U.S.-based manufacturing of energy storage systems should be

encouraged.

To increase market acceptance, energy storage systems must be improved to reduce their weight and size. Enhanced power and storage capacity are two other key

goals of current R&D.

Improving a hybrid’s power electronics system likewise is essential. In some vehicle systems, the power electronics module costs as much as the energy storage system. Boosting the performance and cutting the cost of this system will lead to more

favorable economics for hybrid trucks.

Other issues include improving the efficiency and cost-effectiveness of idling reduction technologies. For long-haul trucks especially, there exists considerable opportunity to decrease the effects of aerodynamic drag on the vehicle, primarily

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through use of lightweight yet strong materials for the truck body, and development

of heavy-duty tires with low rolling resistance. Government and industry groups

working together through the 21st Century Truck Partnership (21 CT) have found

that aerodynamic drag resistance, rolling resistance, drive-train losses, and auxiliary load losses represent fully 40 percent of the total fuel energy used to move a

heavy-duty vehicle.

Potential for Fuel Savings and Emission Reductions

Commercial vehicles running on diesel fuel can easily tally 75,000 miles in a year

and, at $4-plus per gallon, pay $1,000 for just one fill-up. Thus, a relatively modest

increase in fuel efficiency—even five percent—can have a major financial impact

over time. Urban hybrid trucks that make frequent stops and starts could see and

up to 60 percent savings in fuels costs, depending on the way the truck is driven

and which hybrid system is used. The Environmental Protection Agency (EPA) estimates that a typical delivery truck using a hybrid drive train system could save

more than 1,000 gallons of fuel per year in comparison to the fuel used by a similar

conventional truck.

Energy recovery is a major benefit of hybridization. By converting the vehicle’s

dynamic energy into electrical energy during braking, less fuel is spent overall. The

benefits of energy recovery will be greatest for urban vehicles with repeated startand-stop cycles. The hybrid’s control system effectively allows for separation of the

engine speed from the speed of auxiliary or ancillary devices, which offers many advantages.

Electrification of a truck’s auxiliary systems, like heating, air conditioning and entertainment systems, allows the engine to be shut down instead of idling. Again, potential fuel savings is significant, as U.S. trucks idle an average of 1,830 hours per

year.

In addition, modern long haul trucks are increasingly equipped with automated

gearboxes to control the engine speed and save fuel. This has opened up the possibility of introducing ‘‘Eco-roll.’’ When no engine power is needed, the gearbox goes

into neutral and the engine runs on idle, saving one percent to two percent of fuel.

With electrification, we can shut the engine off during coasting for an additional one

percent savings. Blending the use of gasoline engine and electric systems allows for

added fuel savings.

Another feature is the ability for low-speed moving of the vehicle in electric-only

mode. This is useful when going in and out of docks, in harbors, in traffic jams, and

so on. Considering projected increases for traffic congestion, this feature could be

even more valuable in the future.

Future trucks need to be much more efficient than they are today. Electrification

of a truck enables waste heat recovery systems, in which heat can be converted back

to energy. Waste heat recovery systems are estimated to reduce fuel consumption

about six percent to eight percent. Also, using an electric motor for torque assist

can help downspeed the engine, or downsize it, with both alternatives saving fuel.

Fuel savings provide emission reductions as well. A recent study by the

CALSTART partnership evaluated the increases in fuel economy and reductions in

emissions obtained for a hybrid truck during four driving cycles, compared to a conventional vehicle. The study found that in one driving cycle of 70 miles, lasting 1.5

hours, the hybrid truck showed a 68 percent increase in fuel economy and a 58 percent reduction in hydrocarbons, on a gallons-per-mile basis. A 50 percent decrease

in carbon monoxide, a 34 percent reduction in oxides of nitrogen and a 25 percent

decrease in particulate matter were also reported. This is significant, because to

meet current and upcoming EPA regulations, conventional trucks can lose as much

as five to ten percent in fuel economy. This is a result of the use of fuel by advanced

emission control systems and also from aggressive exhaust gas recovery strategies

for lower oxide of nitrogen emissions. Hybrid trucks offer the potential to reduce the

overall emission reduction requirements and therefore reduce the accompanying

emission control fuel economy penalty.

Applications for Hybrid Technologies

Hybrid electric powertrains can be used in many, if not most, of the Nation’s approximately 18 million commercial vehicles. Stop-and-go short-haul commercial vehicles are well-suited for systems that capture braking energy, assist the engine

during frequent accelerations, and turn off the engine during coasting and stops.

However, each kind of commercial vehicle presents a different set of demands,

which in turn determine the vehicle size, configuration, and duty cycles. As a result,

each type is likely to have a different hybrid power-train solution. For example, the

duty cycle of a refuse hauler usually consists of a long drive to a neighborhood, folVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00019 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
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lowed by repeated short starts and stops and ending with a long drive to a waste

site. Rather than using batteries, this application might be ideal for

ultracapacitors—devices with enough power to move heavy loads over short distances—while the engine is used to and from the waste site.

Hybrid transit buses are in use today and have demonstrated an average 27 percent reduction in fuel use. Depending on the climate, about 25 percent of the fuel

used for transit buses is for heating and cooling passengers. School buses can double

the fuel economy with hybridization, but today cost twice the $70,000 price tag of

a conventional bus. Postal delivery vehicles could benefit significantly from plug-in

operation if they could use the engine to reach a neighborhood, then go to all-electric

mode while making mailbox-to-mailbox stops.

Many commercial vehicles idle for extended periods during package deliveries,

refuse collection, or to operate necessary equipment like fans, extension buckets,

backhoes, and related equipment. Altogether, idling of commercial vehicles is estimated to consume more than two billion gallons of fuel annually, while producing

unwanted emissions.

Long-haul trucks, which operate at fairly constant speeds, have challenges all

their own. Long-haul trucks consume nearly 16 billion gallons of diesel fuel annually, with opportunities for increasing fuel economy in this truck class centering

around development of more efficient engines, reduction of aerodynamic drag, and

use of low-rolling-resistance tires. Biofuels may offer advantages as well. Another

promising method of cutting fuel consumption and emissions is to use batteries, or

plug in directly to electricity sources, at truck stops. Off-board service to the truck

can provide heating and cooling, and electricity for lighting, entertainment and ancillary equipment during mandatory driver rest periods. Such needs today are largely met through idling of the truck’s main engine.

In addition, long-haul trucks are being studied in order to determine the benefits

of some form of hybridization as well, especially when their routes involve climbing

and descending hills. Such applications could ultimately deliver huge fuel savings,

despite their relatively small gains in efficiency.

Today’s Market Issues

Promising developments are on the horizon for hybrid trucks, as early prototypes

and demonstration vehicles shed new light on both opportunities and challenges.

For example, one delivery service is creating a fleet of 100 hybrid vans that will

offer an estimated 57 percent improvement in fuel economy and significantly lower

emissions. Other planned new delivery vans can travel up to 20 miles on electricity

alone. At a recent Hybrid Truck Users Forum meeting, at least 15 truck manufacturers announced plans to build or demonstrate new vehicles. They will be used in

refuse hauling, delivery, shuttle bus, school bus, bucket truck, heavy truck applications and more.

Industry and deployment groups are finding that the applications are quickly expanding for trucks built on a core hybrid chassis and then customized for particular

uses. However, because the overall production volume of these trucks is still not

high, they are available only at premium prices. This means that system costs, for

drive-trains through energy storage systems to power electronics, must continue to

be reduced. Consequently, support for continued R&D and for policy incentives remains vital.

Current Federal Programs and Policies

The Department of Energy’s Vehicle Technologies Program supports the development of advanced combustion and engines design, durable and affordable advanced

batteries covering the full range of vehicle applications, from start/stop to full-power

hybrid electric, electric, and fuel cell vehicles. NREL’s extensive testing and analysis

capabilities are being used to understand and solve energy storage thermal issues

in both light- and heavy-duty hybrid applications.

The Department of Energy is also the lead federal agency in the 21st Century

Truck Partnership, established to develop the heavy-duty vehicles of the future. The

partnership also includes the Departments of Defense and Transportation, the EPA,

as well as numerous industry members. Groups such as CALSTART and the Hybrid

Truck Users Forum are also doing much to support and promote the greater use

and availability of hybrid commercial trucks.

Recently the National Academy of Sciences conducted a thorough review of the

21st Century Truck Partnership program. Their final report will be delivered to the

Partnership in a few weeks. Their conclusions and recommendation should be valuable to the Committee as it evaluates the opportunities in heavy hybrids.

17

Along with automotive companies and their suppliers, NREL has been developing

and evaluating new technologies that reduce climate control loads as well as analyzing and evaluating the thermal performance of advanced lithium-ion batteries

and ultracapacitors for energy storage. NREL is conducting research to develop

thermal control technologies that enable high power density solutions for reducing

the overall cost of the power electronics system. Our research includes experimental

and numerical modeling focused on developing advanced thermal interface materials, single-phase liquid, and two-phase jet and spray cooling technology, surface

enhancements for advanced heat exchangers, air cooling, and thermal system integration.

NREL’s Renewable Fuels and Lubricants (ReFUEL) Research Laboratory, a test

facility for advanced fuels in heavy-duty engines and advanced heavy hybrid vehicles, houses unique testing and measurement equipment. These include a heavyduty vehicle chassis dynamometer for testing hybrid trucks and buses, with a road

load simulation capability from 8,000 pounds to 80,000 pounds; a heavy-duty engine

transient test cell (up to 400 hp) for fuels research and development; and an emissions measurement capability sensitive enough to be compliant with federal certification procedures required in 2007. NREL has performed both electric and hydraulic

hybrid vehicle test projects with manufacturers including Eaton/International, Oshkosh, and Allison GM, for hybrid buses, refuse haulers, and step vans.

In addition, DOE’s Advanced Vehicle Testing activities benchmark and validate

the performance of light-, medium-, and heavy-duty vehicles that feature one or

more advanced technologies, including internal combustion engines burning advanced fuels, such as 100 percent hydrogen and hydrogen/compressed natural gasblended fuels; hybrid electric, pure electric, and hydraulic drive systems; advanced

batteries and engines; and advanced climate control, power electronic, and other ancillary systems. The NREL team has conducted medium- and heavy-duty vehicle

evaluations, including evaluations of transit buses, trucks, and idle reduction technologies. Tasks include identifying fleets to evaluate, designing test plans, gathering

on-site data, preparing technical reports, and communicating the results. This work

is funded by the Department’s Vehicle Technologies Program.

Numerous other partnership opportunities and incentives help manufacturers to

develop and fleets to purchase hybrid trucks in the United States, at both the federal and the State level. The Environmental Defense Fund has compiled an online

resource of tax credits and other incentives: www.edf.org/page.cfm?tagID+1124

Summary

This testimony shows that there is no single hybrid truck design or system that

will meet all our commercial transportation needs. Different solutions are needed

both to improve the fuel economy of heavy-duty vehicles and to reduce associated

emissions. Specific technologies and systems for achieving those objectives in heavyduty hybrid vehicles will differ, depending on the vehicle’s application and duty

cycle.

As we move toward a future in which advanced vehicle technologies play a larger

role, we understand the corresponding need to create a U.S. manufacturing base for

heavy-duty hybrids, and their components. Otherwise, we might be trading our dependence on imported petroleum for a dependence on imported batteries and other

components, a potentially serious issue for U.S. competitiveness.

Thus, a portfolio of energy-saving and environmental solutions will serve to meet

our nation’s economic, energy, and transportation challenges as well as enhance our

energy security. A strong federal R&D and policy role is essential to development

of these solutions.

Thank you.

BIOGRAPHY FOR TERRY PENNEY

Terry Penney joined the National Renewable Energy Laboratory in 1979. Prior to

joining NREL, he worked for Concentration, Heat and Momentum (CHAM) a consulting group headed by Prof. Brain Spalding based in London developing unique

finite element computational codes for multi-phase heat and mass transfer problems. He also worked Von Karmen Facility at the Arnold Engineering Development

Center in middle Tennessee where he worked on the Space Shuttle program. At

NREL he has worked on Ocean Energy, Buildings research, Optical and Thermal

Fluid Science. More recently, he launched the Hybrid Vehicle program in 1992,

which grew into a $300M Partnership for New Generation Vehicles (PNGV) between

the government and GM, Ford and DaimlerChyrsler. Currently he is NREL’s Technology Manager for Advanced Vehicle and Fuel Technologies responsible for both alVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00021 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
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ternative fuels and advanced vehicles projects in both light and heavy-duty hybrid

platforms.

He has more than 50 technical publications to his credit, including energy-related

articles in Scientific American and the Encyclopedia Britannica. Terry has worked

on computational fluid dynamics problems for a variety of applications and has

pushed math-based analysis, which has evolved simultaneous multi-physics based

tools with optimization including six-sigma, optimization and virtual proving

ground. He has 35 years experience in testing and analysis in aerodynamics, heated

mass transfer components, and advanced thermodynamic cycles, including gas turbines. He is an SAE member, a Baldridge team competition examiner, National

Science Bowl scientific judge and winner of the Van Morris Award for performance.

His undergraduate degree was from Purdue University in Aeronautical Engineering

and Engineering Science and his graduate work was at the University of Tennessee

in Mechanical Engineering. He received the MRI President’s Award in 1992 for exceptional performance and the Van Morris award in 1996 for inspired leadership

and forging links to industry.

Chairman LAMPSON. Thank you, Mr. Penney.

Mr. Smith, you are recognized for five minutes.

STATEMENT OF MR. ERIC M. SMITH, CHIEF ENGINEER, MEDIUM DUTY HYBRID ELECTRIC POWERTRAINS, EATON CORPORATION

Mr. SMITH. Chairman Lampson, Ranking Member Inglis, thank

you for the opportunity to appear today. My name is Eric Smith,

and I am the Chief Engineer for Medium-Duty Hybrid Electric

Powertrains for the Eaton Corporation. Eaton is headquartered in

Cleveland, Ohio. We have over 79,000 employees worldwide, including over 28,000 employees in more than 40 states.

A little bit of background on the Eaton hybrid power system. Following years of successful development and extensive real-world

testing, Eaton is currently offering production hybrid electric products for commercial vehicle applications, and our first hybrid hydraulic products will enter the market later this year. Eaton’s hybrid electric power system is currently in production option in

North America with Peterbilt, Kenworth, International, and

Freightliner, and we are also working with leading European manufacturers such as DAF Trucks and Daimler Trucks.

Eaton was part of the U.S. Department of Commerce Clean Energy Trade Mission to China, and we are working currently to

place over 200 hybrid electric buses in Guangzhou, China. Those

should all be placed by the end of 2008.

The design and development effort for all of this work is happening at Eaton facilities in Michigan and Minnesota, and our hybrid systems are produced currently in Indiana and Iowa.

Eaton has invested in three separate hybrid power solutions for

commercial vehicles. First, our hybrid electric vehicle. Eaton’s production hybrid electric power system can provide significant fuel

savings and reduce vehicle emissions. Hybrid power is particularly

appealing in Classes five through eight vehicles. These are large

trucks with weights exceeding 16,000 pounds, such as pick-up and

delivery and utility trucks.

And as you can see on my graph that is displayed here, the fuel

savings possible on the range of trucks we are discussing is not

only from improved fuel economy while driving but also from reduction in engine idle or engine off operation at work sites.

19

Additionally, Eaton’s hybrid electric power system is the only certified by the IRS for the medium- and heavy-duty hybrid tax credit

that was enacted in the Energy Policy Act of 2005.

I would like to speak just briefly on the hybrid hydraulic vehicles. In addition to hybrid electrics that I have mentioned, Eaton

is also working on development of hybrid hydraulic vehicles for applications such as refuse trucks and pick-up and delivery vehicles.

We are working with the EPA and the Army to research and develop these vehicles.

Finally, a few comments on plug-in hybrid vehicles. In addition

to the hybrid electric and hybrid hydraulic vehicles, plug-in hybrid

technology in the early stages of development and demonstration

for medium- and heavy-duty trucks. Eaton is pursuing a number

of development and demonstration projects directly and with partners such as the Department of Energy. With this energy the focus

must not be only on batteries but also on chargers and electrication

of the accessories that will be critical to the success of this technology.

A few comments on battery system development challenges. The

success of the hybrid market is tied to the development and commercialization of state-of-the-art lithium ion batteries. The develop,

manufacturing, and assembly methodologies needed to allow for

the wide range of vehicle sizes and unique configurations needed

in the world of, I am sorry. The wide range of vehicle size and the

unique configurations needed in the world of medium- and heavyduty trucks.

Remember, the benefits of hybridization apply equally to cars

and trucks, although implementation and use of commercial trucks

has unique challenges because of the size of the systems, the operating environments, and the duty cycles.

Finally, the hybrid truck market and supporting technologies are

still in the early stages of commercialization and long-term leadership will be hotly contested worldwide. U.S.-based companies are

currently positioned to be world leaders in development and manufacture of hybrid systems, and we can provide the same benefits

and solution for truck fleets around the globe, though we must

keep pushing our research efforts forward.

As the Committee debates funding research and development for

hybrid vehicles, we would urge that electric hybrids, hybrid hybrids, I am sorry, hydraulic hybrids, and plug-in hybrid systems for

commercial vehicles be included in any such programs.

Once again, thank you for this opportunity to appear today in

front of this committee as a representative of Eaton Corporation.

[The prepared statement of Mr. Smith follows:]

PREPARED STATEMENT OF ERIC M. SMITH

Chairman Lampson, Ranking Member Inglis, thank you for the opportunity to appear today. My name is Eric Smith and I am the Chief Engineer for Medium Duty

Hybrid Electric Powertrains for the Eaton Corporation. Eaton is a diversified industrial manufacturer headquartered in Cleveland, Ohio. We have over 79,000 employees worldwide, including over 28,000 employees in over 100 locations in over 40

states. Our 2007 sales were over $13 billion, and we sold products in more than 125

countries.

Eaton has five main business groups that manufacture highly-engineered components:

• Hydraulics, which manufactures hydraulic components, hoses and connectors;

20

• Aerospace, which manufactures fuel systems, motion control systems, propulsion sub-systems and cockpit interface and circuit protection applications for

commercial and military programs;

• Electrical, which manufactures residential and commercial power distribution

equipment;

• Automotive, which manufactures engine valves, lifters and superchargers;

and

• Truck, which manufactures transmissions and hybrid systems for heavy- and

medium-duty trucks.

Eaton Hybrid Truck Power Systems

Following years of successful development and extensive real-world testing, Eaton

has emerged as a market leader in the development and production of hybrid power

systems for commercial vehicle fleets. Eaton is currently offering hybrid electric

products for commercial vehicles applications and our hybrid hydraulic products will

enter the market this year. Our hybrid power systems are being tested and used

in the United States by companies such as FedEx, UPS, Coca-Cola and Pepsi Cola.

Eaton’s diesel-electric hybrid power system is currently engineered as a production

option in North America for Peterbilt, Kenworth, International and Freightliner and

we are working with leading European manufacturers like DAF Trucks and Daimler

Trucks for potential introduction in Europe.

Eaton has invested in three separate hybrid power solutions for commercial vehicles:

• Hybrid Electric Vehicles (HEV)

• Hybrid Hydraulic Vehicles (HHV)

• Plug-In Hybrid Vehicles (PHEV)

Eaton believes that all of these technologies have a place in the truck market. We

will continue to develop these technologies to create a portfolio of hybrid power systems for a wide variety of vehicles and applications.

Eaton’s hybrid power systems can provide significant fuel savings and reduce vehicle emissions. Hybrid power is particularly appealing for Class 5/6 vehicles (Pickup and Delivery), Class 7 vehicles (Utility), and Class 8 vehicles (Over the Road

Trucks)—all large trucks with weights exceeding 16,000 pounds, especially in stopand-go applications.

Hybrid power provides further savings through engine-off operations and power

take-off operations at a work site. Whatever the application, hybrid power can provide significant fuel savings, increased functionality, quieter operation, and improved performance.

Currently, the U.S. stands poised to lead the world in hybrid power for trucks.

Our Hybrid Drive Systems are being developed and engineered at our facilities in

Michigan and Minnesota and then our systems are produced in Indiana and Iowa.

Eaton is the first Tier One Supplier of Truck components to produce for sale HEV

systems to the Truck OEM market. We are the only hybrid power system to be certified by the IRS for the medium- and heavy-duty hybrid tax credit that was enacted

in the Energy Policy Act of 2005.

Our medium-duty hybrid electric vehicles are achieving between 20 percent and

70 percent fuel economy gains depending upon the truck application.

Early this year, Eaton Corporation agreed to sell 207 diesel-electric hybrid power

systems to Guangzhou Armada Development Corporation to be installed in new

buses for operation in the city of Guangzhou, China. This purchase adds to the initial sales of 30 Eaton hybrid-powered buses announced in January as part of the

U.S. Department of Commerce Clean Energy Trade Mission to China.

It is Eaton’s largest single hybrid power systems order to date. Additionally,

Eaton Corporation recently received orders from United Parcel Service for 200 units

while Coca Cola Enterprises ordered 120 hybrid units. These sales make Eaton Corporation the world leader in hybrid power sales in the commercial truck market.

Hybrid Electric Vehicles (HEV)

To produce Eaton’s patented parallel hybrid electric system; we couple a vehicle’s

diesel engine with an electric motor/generator, power electronics and batteries.

Hybrid electric systems have much higher energy storage capacity, and generally

have low to moderate power capabilities compared to hydraulic hybrids. Hybrid electric systems can provide engine off PTO capability for applications needing work site

hydraulic operations and an auxiliary electric power source from the vehicle. This

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is valuable in vehicles whose workday takes them off the highway and to a job site,

where the truck’s power is used to operate other tools and equipment.

Hybrid electric vehicles also require an unprecedented level of integration and

partnership between truck makers, engine manufacturers and suppliers of the

drivetrain and major electrical components. Eaton’s strategy includes early and significant collaboration with truck OEMs, engine manufacturers and key technology

and component suppliers.

The hybrid electric system maintains conventional drivetrain architecture—such

as Eaton’s Fuller UltraShift automated transmissions—while adding the ability

to augment engine torque with electrical torque. The system recovers energy normally lost during braking and stores the energy in batteries. When electric torque

is blended with engine torque, the stored energy is used to improve fuel economy

and vehicle performance for a given speed or used to operate the vehicle with electric power only.

This integrated system delivers a number of benefits, including:

• Up to 60 percent reduction in fuel consumption

• Up to 87 percent reduction in idle times

• Reduced maintenance and lower life cycle costs

• Reduced emissions

• Quieter operations and better acceleration

The system can also be designed to provide energy for use during engine-off work

site operations. As an additional benefit of the parallel architecture, should the hybrid system go off-line, conventional engine-powered operation continues.

Hydraulic Hybrid Vehicles (HHV)—Parallel and Series

In a parallel hybrid hydraulic system, the conventional vehicle powertrain is supplemented by the addition of the hydraulic system. The system is best suited for

vehicles that operate in stop-and-go duty cycles, including refuse vehicles, pickup

and delivery vehicles, and buses, where fuel economy improvements between 20 percent and 30 percent are typical. Eaton plans to commercialize its parallel hybrid hydraulic system in refuse trucks in 2008. Other applications will soon follow.

In a series hybrid hydraulic system, the conventional vehicle driveline is replaced

by the hybrid system. The conventional transmission and driveline are replaced by

the hybrid hydraulic powertrain and energy is transferred from the engine to the

drive wheels through fluid power. The system is suited to a broader number of applications than parallel hydraulic hybrids, though—as with all hybrids—benefits

will be highest in vehicles that operate in stop-and-go duty cycles.

Eaton is working with the Environmental Protection Agency (EPA), under a Cooperative Research and Development agreement, to develop a series hydraulic hybrid

power system that combines a high-efficiency diesel engine and a unique hydraulic

propulsion system to replace the conventional drivetrain and transmission.

The series hybrid engine continually operates at its ‘‘sweet spot’’ of fuel consumption facilitated by the continuously variable transmission (CVT) functionality of the

series hybrid system and by regenerative braking. The vehicle uses hydraulic pump/

motors and hydraulic storage tanks to recover and store energy, similar to what is

done with electric motors and batteries in hybrid electric vehicles.

These vehicles can achieve a fuel economy improvement between 50 and 70 percent by:

• braking energy that normally is wasted is recovered and reused;

• the engine is operated more efficiently; and

• the engine can be shut off when not needed, such as when stopped or decelerating.

Currently, Eaton is engaged in a program supported by the U.S. Army to militarize this drive train to provide power and fuel efficiency to military vehicle drive

trains.

Plug-In Hybrid Electric Vehicles (PHEV)

Eaton is currently working with the Electric Power and Research Institute (EPRI)

to develop commercial PHEV trucks. However, plug-in Hybrid technology is in the

very early stages of development for heavy duty trucks.

PHEV vehicles require a notably higher energy storage capability then current

medium or light duty production systems in order to maximize benefits of plug in

capability. Higher energy storage battery systems facilitate the on vehicle energy

storage necessary to move towards full electric vehicle capability (critical for zero

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emission and noise restriction areas). This would also require work on electrifying

the accessories inside the vehicle (e.g., steering, brakes, HVAC).

In addition, we are working with members of the Hybrid Truck Users Forum

(HTUF) such as Southern California Edison, Pacific Gas and Electric, and Florida

Power and Light to develop a PHEV for use in utility truck applications. We are

also working with Navistar on a proposal for a Department of Energy funded PHEV

truck project.

Needed Enabling Technologies

Successful deployment of hybrid vehicles is dependent on the availability of high

power output and high energy storage devices. Today, the Lithium Ion battery represents the most promising technology for hybrid electric vehicles. However, these

types of batteries significantly increase the complexity and cost of the system. Additionally, robust battery management systems are needed to ensure safe and reliable

operation.

Managing the charge and discharge process within the battery pack to optimize

service life and reliability, as well as monitoring, predicting, diagnosing and mitigating potentially unsafe conditions, are challenges that must be overcome. The use

of high voltage DC batteries (400–600 volts) in vehicles poses a set of challenges not

normally seen on commercial vehicles.

For Hydraulic Hybrid Vehicles, the Accumulator provides the same energy storage

function as a battery. Today’s accumulator technology is adequate for certain applications. But to achieve widespread adoption of hybrids, an increase in the energy

storage capacity is needed.

Challenges and Opportunities

The U.S. is far behind in the development and commercialization of state-of-theart, ‘‘plug and play’’ lithium ion battery systems for HEV and PHEV applications

that are affordable, reliable and safe. The assembly and manufacturing methodologies need to be modular and flexible, in order to cater to a range of vehicle size and

configuration needed in the world of medium- and heavy-duty trucks. Unfortunately,

there isn’t a one-size-fits-all solution for trucks.

The benefits of hybridization apply equally to cars and trucks, although implementation and use in commercial trucks is significantly more complex. For example,

the battery packs are larger, often must be located on the exterior of trucks (exposed

to the elements) and the duty cycles are much more demanding, since commercial

vehicles are typically driven for 12–16 hours a day versus cars that are normally

used for commuting and hence driven only a few hours a day.

Phasing in the next generation lithium ion batteries to make PHEVs a reality will

require significantly more effort. Any significant effort towards accelerating the

market appeal and penetration of hybrid vehicles in the U.S. by developing stateof-the-art technologies and systems will provide huge impetus to the endeavor towards energy conservation and pollution reduction.

A major threat to the widespread adoption of hybrid vehicles (particularly the

PHEVs) is the high cost of implementation of the fairly large battery systems needed, as well as the reliability and life of the energy storage systems. Developing a

flexible and robust system to leverage multiple cell suppliers and reach the necessary economies of scale will go a long way toward reducing implementation costs.

(Dr. Giorgio Rizzoni, Center for Automotive Research, The Ohio State University)

Conclusion

The hybrid truck market is in its infancy and the jury is still out as to who will

lead the world in this space. Investment in Research and Development will help reduce our dependence on foreign oil, help truck fleets big and small mitigate the cost

of fuel and reduce emission here at home. In fact, these are the types of technologies

that can lead to a leadership position for the United States in the manufacture of

hybrid truck technologies. We can provide these same benefits and solutions to

truck fleets around the globe.

As the Committee debates funding research and development for hybrid vehicles,

we would urge that electric hybrid, hydraulic hybrid, and plug-in hybrid systems be

included in such a program. Battery and accumulator technologies need to be developed specifically for commercial vehicles because their size, weight, duty cycle and

energy storage requirement are unique from those storage systems being developed

for passenger vehicles. It only makes sense to include commercial trucks in the mix.

With proper investment, the United States could lead the world in these new and

exciting technologies.

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BIOGRAPHY FOR ERIC M. SMITH

Employment History

2005 to Current:

Eaton Corporation in the Truck Group, current role Chief Engineer—Hybrid

Medium Duty Product Engineering. Responsible for development and bring to

production the medium duty electric hybrid system. Current in post launch

phase of the program.

2001–2005:

Ballard Power Systems—Powertrain Engineering Manager responsible for design and development of the electric powertrain used in the Ford and Daimler

pre-production fuel cell vehicles.

1989–2001:

Ford Motor Company—Various positions in manufacturing, testing and product

development all within the Transmission group.

Education

Bachelor of Science—Metallurgical Engineering, Michigan Technological University

Personal

Have lived the majority of my life in Michigan, currently living in Kalamazoo, MI

with wife and three daughters.

Chairman LAMPSON. Thank you very much, Mr. Smith.

Mr. Dalum, you are recognized for five minutes.

STATEMENT OF MR. JOSEPH T. DALUM, VICE PRESIDENT,

DUECO

Mr. DALUM. Good morning, Chairman Lampson, Ranking Member Inglis, and distinguished Members of the Subcommittee. 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

hybrid technologies for medium- to heavy-duty commercial trucks.

My name is Joe Dalum, and I am Vice President of Dueco.

Dueco, headquartered in Waukesha, Wisconsin, is one of the largest final stage manufacturers of utility trucks in the country. We

produce aerial devices, digger derricks, and cranes that are sold to

electric utilities for the maintenance of their transmission and distribution power lines. Dueco also provides equipment and services

for the telecommunications market, other industries, and the government.

In 2006, Dueco began to assess alternative hybrid vehicle technologies. Those activities led to a collaborative development program between Dueco and Odyne Corporation. Odyne is a developer

of plug-in hybrid electric vehicle powertrains for Class six, seven,

and eight vehicles. Our efforts resulted in the introduction of the

utility industry’s first pre-production plug-in hybrid medium-duty

truck in the fall of 2007.

While you have already received my more extensive written testimony, this morning I will focus on our development of a plug-in hybrid medium-duty truck. There are several factors that favor the

development and deployment of hybrid and 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 increased maintenance

costs.

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In our company’s opinion, plug-in hybrid technology for mediumand heavy-duty trucks is particularly well suited to addressing

those challenges. In my written testimony you will find a more detailed explanation of the factors that support that position.

I will now discuss our experience with the plug-in medium-duty

truck. A photo of a plug-in medium, heavy-duty truck is shown on

the screen. This type of truck is typically used by utilities for the

maintenance and installation of power lines. It is unique in that a

very large battery system of approximately 35 kilowatt hours, more

than 15 times larger than one used in a conventional hybrid, provides power to help propel the vehicle, along with the diesel engine.

The battery system also provides power for equipment on and off

the truck. When the truck returns to the garage, domestically-generated grid power recharges the battery system, offsetting the need

for petroleum. The size of the battery system and the ability to recharge using grid power differentiates the plug-in hybrid system

from a conventional hybrid. Using the large grid rechargeable battery system reduces fuel consumption and emissions during driving

and provides for an all-electric stationary mode. The system completely eliminates fuel consumption and emissions at the job site

for a typical day, while also reducing noise.

Fuel savings and corresponding reduction in greenhouse gas

emissions are dependent upon the application. The current vehicle

reduces fuel consumption by an estimated 1,400 gallons of fuel per

vehicle per year for a typical utility application. I am confident additional research can further improve fuel savings.

In my opinion there will be a time in the future when affordable

plug-in hybrid systems for a medium or heavy-duty truck provides

100 percent electrical operation for a limited driving range, completely eliminating fuel consumption and reducing emissions when

recharged by clean electricity produced through renewable or nonemitting domestic energy sources.

There are several technical hurdles to the deployment of plug-in

hybrid trucks. Battery system costs and performance challenges,

non-optimal powertrain architecture, questions about utility infrastructure for charging large fleets of trucks with high capacity battery systems, and a lack of information about specific medium- and

heavy-duty applications need to be overcome.

Dueco encourages the Federal Government to develop programs

that help to specifically fund research into the development of plugin hybrid systems for medium- and heavy-duty trucks used in specific applications 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 cost of

businesses competing in a global market, reduce greenhouse gas

emissions and emissions of other pollutants, reduce dependency on

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foreign oil, reduce noise within our cities, and potentially improve

productivity for certain applications, such as 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 would ask for your support of the proposed legislation that

would help to accelerate research into plug-in hybrid technology for

medium- and heavy-duty trucks and encourage the development of

partnerships between manufacturers and utilities.

Thank you.

[The prepared statement of Mr. Dalum follows:]

PREPARED STATEMENT OF JOSEPH T. DALUM

Introduction

Good morning Chairman Lampson, Ranking Member, Inglis and distinguished

Members of the Subcommittee on Science and Technology. 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 hybrid technologies for medium to heavy duty

commercial trucks.

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 Class 6, 7 and 8 vehicles. Our efforts resulted in the introduction of the utility industry’s first commercial plug-in hybrid medium duty truck

in the Fall of 2007.

Background

Medium- and heavy-duty trucks, used by the utility industry 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 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.

Hybrid drive systems may be installed by an original equipment manufacturer or

by another entity during an intermediate or final stage of manufacturing process.

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 may be installed only on newly manufactured truck chassis

or some designs may facilitate either an installation on a new chassis or a retrofit 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. Retrofit 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 eight mpg while being driven and

while at idle will typically consume approximately one gallon per hour.

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A plug-in hybrid electric vehicle (PHEV) is a hybrid vehicle with batteries that

can be recharged by plugging into our nation’s 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 Class 4, 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 of Class 4 or higher 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 and conventional hybrid trucks:

There are several factors that favor the development and use of hybrid and plugin 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.

• 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.

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• 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 nonemitting sources. As an example, PG&E generates over 50 percent 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. A conventional hybrid may require the engine to restart to

charge the batteries.

• Uses low cost, domestically produced energy from the 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.

• 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.

• 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.

• Feed Stock diversity promotes stability

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

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• A portion of our nation’s existing generation fuel mix is currently CO2 free.

Æ Example: approximately 56 percent of PG&E’s energy portfolio is CO2

free

• Recent and ongoing legislation promotes cleaner generation mix over time

Æ Renewable Portfolio Standard (RPS) legislation enacted in 21 states

• Low fuel cost and minimal additional infrastructure required

Æ Preferential rates for off-peak consumption

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

Æ Wind can often produce more energy at night

Plug-in Hybrid Electric Truck, bucket truck application:

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 two 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 nine kW, more optional

• Interfaces with an Allison transmission, the system may also interface with

other transmissions (testing with other transmissions has not been completed)

• 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:

5, 6, 7, 8 (19,500 - > 33,000 GVWR). Testing of the system on Class 5

and Class 7 trucks has begun, testing on Class 6 and Class 8 is planned

within the next year.

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• Basic design can be used on a variety of chassis configurations: 2x4, 4x4,

tandem. Testing has begun on the two-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

Fuel savings are dependent upon the application. The current vehicle reduces fuel

consumption during driving in urban areas by approximately 10–15 percent. The vehicle will typically save 100 percent of fuel consumption during stationary operations at a job site, resulting in approximately one gallon per hour 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 five-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 eight mpg fuel efficiency during driving

and approximately one gallon per hour fuel consumption during idle.

Parallel system with plug-in: approximately 12 percent decrease in fuel consumption for a plug-in hybrid during driving and 0 gallons per hour fuel consumption during idle.

Estimated fuel savings: 56 percent reduction in fuel consumption, or approximately 1,400 gallons of fuel saved per year, based upon 250 work days per year.

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

Stated Assumptions:

Conventional chassis: approximately eight mpg fuel efficiency during driving

and approximately one gallon per hour fuel consumption during idle.

Series system with plug-in: 50 percent decrease in fuel consumption for a plugin hybrid during driving and 0 gallons per hour fuel consumption during idle.

Estimated fuel savings: 75 percent reduction in fuel consumption, or approximately 1,875 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 plugin 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 below. 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.

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Major technical hurdles for deployment of plug-in hybrid trucks:

There are several technical hurdles for the deployment of plug-in hybrid trucks.

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.

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 enVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00034 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
31

ergy 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 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 plugin 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

power to recharge overnight. Assessment and testing on the effects of charging a

large number of plug-in hybrid trucks is suggested.

Research into specific medium- and heavy-duty applications:

Plug-in hybrid technology for medium- and heavy-duty trucks may 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.

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 plugin 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 would ask for your support of

the proposed legislation that would help to accelerate research into plug-in hybrid

technology for medium- and heavy-duty trucks and encourage the development of

partnerships between manufacturers and utilities.

BIOGRAPHY FOR JOSEPH T. DALUM

Mr. Dalum obtained a BS in Mechanical Engineering from the University of Notre

Dame in 1986 and a Master’s of Business Administration from the Kellogg School

32

of Management, Northwestern University, in 2003. He has over 20 years of experience in the automotive and truck industries.

As Vice President of DUECO, Joe has management responsibility for hybrid programs and several business segments. He has technical experience in the design and

manufacture of aerial bucket and digger derrick trucks for the utility industry and

has managed the engineering group within DUECO. Joe also works with key accounts and helps to direct business and investment strategy for DUECO. He serves

on the Board of Directors of DUECO and its affiliates.

Prior to joining DUECO in 1999 as Engineering Manager, Mr. Dalum developed

automotive products and systems for over 10 years. He has experience in managing

projects and bringing new technology from initial concept into high volume production. Joe has been granted eight U.S. patents in the area of automotive technology.

He has worked on a variety of domestic and international programs with vehicle

manufacturers including General Motors (both domestic and foreign subsidiaries),

Suzuki, Isuzu, and Fiat to design new components into their vehicles.

Chairman LAMPSON. Thank you, Mr. Dalum.

Ms. Egbert, you are recognized for five minutes.

STATEMENT OF MS. JILL M. EGBERT, MANAGER, CLEAN AIR

TRANSPORTATION, PACIFIC GAS & ELECTRIC COMPANY

Ms. EGBERT. Good morning, Chairman Lampson, Ranking Member Inglis, and Members of the Committee. I am very pleased to

appear before you this morning on behalf of Pacific Gas and Electric Company to offer my views on the important role of mediumand heavy-duty hybrid and plug-in electric hybrid vehicles.

Pacific Gas and Electric Company, headquartered in San Francisco, California, is one of the largest natural gas and electric

power utility companies in the United States. The company provides natural gas and electric service to approximately 15 million

people in northern and central California.

For nearly two decades PG&E has also actively worked to advance alternative transportation technologies, including natural

gas and electric vehicles. We are particularly enthusiastic about

the incorporation of hybrid and plug-in electric hybrid mediumand heavy-duty trucks into our fleet. We have already seen tremendous financial and environmental benefits from doing so.

The two most common uses for integrating hybrid and plug-in

hybrid electric trucks into our fleet are for our so-called trouble

trucks and more familiar, bucket trucks. PG&E’s trouble trucks are

used by our first responders when an outage or other situation is

initially reported. These trucks operate within a wide range of

mileage parameters, ranging from a few miles if operated within

the city of San Francisco, to covering long distances if operating in

more remote parts of our service territory. This range of operation

makes hybrids an ideal solution for our company and our industry.

For most repair work the utility industry standard is to dispatch

large diesel-powered bucket trucks. These trucks are then required

to idle for long periods of time to complete many necessary repairs,

consuming one gallon of diesel per hour of idle time. The idling is

necessary to maneuver the bucket used to hoist servicemen to perform repairs.

In 2007, PG&E became one of 14 utilities across North America

to deploy one of 24 diesel electric hybrid bucket trucks developed

by the International Truck and Eaton Companies. PG&E’s field

trial for this new truck is currently ongoing in San Francisco, and

preliminary results indicate that diesel electric hybrid bucket

trucks reduce fuel consumption by 40 to 60 percent, reduce emisVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00036 Fmt 6633 Sfmt 6601 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
33

sions by 50 to 90 percent, provide on-board power generating capacity to power up to five average-sized homes while service is

being restored, improve operational and scheduling flexibility, and

reduce maintenance costs.

In addition to incorporating these and other new vehicle and

truck technologies into our fleet, PG&E has actively participated in

DOE-sponsored workshops by providing a utility company perspective on the benefits and potential of all types of plug-in hybrid vehicles.

Even as new technology demonstration options are becoming

available to PG&E at an increasing pace, there remains significant

barriers to our ability to more fully deploy the hybrid and plug-in

hybrid electric medium- and heavy-duty trucks, the most significant being financial barriers. Currently the up-front cost of a hybrid bucket truck is 50 percent higher than a conventional bucket

truck. In other words, we could purchase three conventional bucket

trucks for every two hybrids we purchase.

Although the lifetime fuel and maintenance savings help make

the investment more attractive and the environmental benefits are

a key part of our business objectives, the up-front costs are still

daunting. In order to accelerate the procurement of hybrid trucks

into utility fleets, we believe some financial incentive will be needed in either the form of grants or tax credits. These financial incentives would spur demands from PG&E and other utilities around

the Nation that will allow truck and power system manufacturers

to ultimately bring down their unit costs.

At a time of historically high diesel prices, increasing concerns

over climate change, and energy security, the time is right to accelerate research, development, and deployment of hybrid and plugin hybrid electric truck technologies. With thousands of utilities nationwide, the market for medium- and heavy-duty hybrid and plugin hybrid electric trucks is very significant. PG&E commends the

Subcommittee’s inquiry into this important market, and we are

hopeful that with effective government leadership the right incentives will be implemented to help reduce the financial barriers that

currently exist and that discourage widespread, rapid deployment

of clean hybrid commercial truck technology.

On behalf of Pacific Gas and Electric Company, I want to thank

you for the opportunity to appear before the Subcommittee today.

Thank you.

[The prepared statement of Ms. Egbert follows:]

PREPARED STATEMENT OF JILL M. EGBERT

Chairman Lampson, Ranking Member Inglis, and Members of the Committee, I

am very pleased to appear before you this morning on behalf of Pacific Gas and

Electric Company to offer my views on the important role of medium- and heavyduty hybrid and plug-in electric hybrid trucks in utility fleets. At a time of historically high diesel fuel prices, increasing concerns over climate change and U.S. energy security, I commend the Committee for its leadership in addressing this important topic.

Pacific Gas and Electric Company, headquartered in San Francisco, California, is

one of the largest natural gas and electric power utility companies in the United

States. The company provides natural gas and electric service to approximately 15

million people throughout a 70,000-square-mile service area in northern and central

California. PG&E proudly delivers some of the Nation’s cleanest energy to our customers. On average, more than half of the electricity we deliver to customers comes

34

1These figures represent a full ‘‘well-to-wheel’’ analysis, which takes into account energy use

and emissions at every state of the process, from the moment the fuel is produced at the well

to the moment the wheels are moved. Estimates compare the avoided emissions from PG&E’s

CNG vehicles to petroleum usage based on the methodology outlined in Full Fuel cycle Assessment (CEC–600–2007–003, June 2007), which uses the Argonne National Laboratory’s GREET

emissions model modified to California inputs.

from sources that emit no carbon dioxide, or CO2, and an increasing amount comes

from renewable sources of energy.

For nearly two decades, PG&E has also actively worked to advance alternative

transportation technologies, including natural gas and electric vehicles. More recently, the Company has added diesel-electric hybrid, plug-in hybrid electric and

fuel cell powered vehicles to its fleet. PG&E’s clean air transportation strategy is

integrated throughout our fleet and the fleets of many of our customers as well. This

is a key pillar of PG&E’s overall emissions reduction and environmental stewardship strategy—no less important than procuring clean sources of energy or protecting wildlife habitats.

PG&E operates the largest natural gas alternative fueled utility fleet in the Nation. Our fleet includes more than 1,200 natural gas fueled vehicles, of which more

than 100 are classified as medium- and heavy-duty vehicles. The majority of these

vehicles run on cleaner burning compressed natural gas. Over the past ten years,

PG&E’s fleet displaced over 3.4 million gallons of diesel and gasoline with natural

gas which translates to over 6,000 avoided tons of CO2 emissions. When combining

our fleet with those of more than 300 of our customers whom we have helped with

incorporating alternative fueled vehicles into their own fleets, the amount of diesel

and gasoline displaced grows to more than 47 million gallons and 174,000 tons of

avoided CO2 emissions over the last three year period alone.1

We are particularly enthusiastic about the incorporation of hybrid and plug-in

electric hybrid, medium- and heavy-duty trucks, or PHET’s, into our fleet. We have

already seen tremendous financial and environmental benefits from doing so. Our

goal in assessing and applying new vehicle power technologies is to demonstrate

their practical application in our fleet, and gain the experience necessary to provide

our fleet management with alternatives to conventionally fueled vehicles. With each

demonstration vehicle and truck we consider a number of factors, including initial

capital cost, operating and long-term fuel costs, ability to meet greenhouse gas emissions reduction goals, reliability and serviceability, operational flexibility, fuel consumption reduction, tailpipe emission reductions consistent with California and federal regulations, noise pollution reduction and operator safety.

The two most common uses for integrating hybrid and PHET trucks into our fleet

are for our so-called ‘‘trouble trucks,’’ and the more familiar ‘‘bucket trucks.’’ PG&E’s

‘‘trouble trucks’’ are used by our first responders when an outage or other situation

is initially reported, and are dispatched to assess a problem, and occasionally perform minor repairs lasting under two hours. These trucks operate within a wide

range of mileage parameters, ranging from a few miles if operated locally within the

City of San Francisco to covering long distances if operating in more remote parts

of our service territory. This range of operation makes hybrids, such as the Ford

F550 SuperDuty hybrid truck an ideal solution for our company and our industry.

These types of vehicles provide significant benefits which include improved fuel efficiency, lower fuel costs, and lower refueling time as compared to our conventional

trouble trucks. PG&E is currently working with Ford to develop an all plug-in electric version of the F550 SuperDuty truck.

For most repair work, the utility industry standard is to dispatch large dieselpowered bucket trucks. These trucks are then required to idle for long periods of

time to complete many of the necessary repairs which forces a fuel consumption rate

of approximately one gallon of diesel per hour of idle time. The idling is necessary

to power the hydraulic arm, which is powered by the engine, to maneuver the bucket used to hoist servicemen who perform repairs.

In 2007, PG&E became one of 14 utilities across North America to deploy one of

24 diesel-electric hybrid bucket trucks developed by the International Truck and

Eaton Companies. PG&E’s field trial for this new truck is currently ongoing in San

Francisco with an on-board telematics system that sends continuous performance

and operations data which measures efficiency against that of a conventional diesel

truck being used in the same application and in the same general geographic location. Preliminary results indicate that diesel-electric hybrid bucket trucks:

• Reduce fuel consumption by 40–60 percent.

35

• Reduce emissions by 50–90 percent by operating the utility bucket in electriconly mode without the engine running. A typical utility truck’s engine runs

eight or more hours a day.

• Provide on-board power generating capacity of 25 kilowatts of standby

power—enough to power up to five average-size homes while service is being

restored.

• Improve operational and scheduling flexibility, and customer satisfaction by

operating quietly, particularly when working at night in noise-sensitive areas.

• Reduce maintenance costs due to less engine use and brake wear due to regenerative braking capacity that charges the battery.

PG&E has also procured two pre-production heavy duty Peterbilt hybrid trucks

which will have two buckets per truck, designed specifically for live wire work.

In addition to incorporating these and other new vehicle and truck technologies

into our fleet, we also participate actively in industry and government sponsored initiatives aimed at defining standards and requirements for new hybrid and PHET

technology. PG&E has actively participated in DOE sponsored workshops by providing a utility company perspective on the benefits and potential of all types of

plug-in hybrid electric vehicles and the potential impacts on the electric power grid

of significant penetrations of such vehicles.

Even as new technology demonstration options are becoming available to PG&E

at an increasing pace, there remain significant barriers to our ability to more fully

deploy the hybrid and PHET medium- and heavy-duty trucks—the most significant

being financial barriers. Currently, the up-front cost of a hybrid bucket truck is 50

percent higher than a conventional bucket truck. In other words, we could purchase

three conventional bucket trucks for every two hybrids we purchase. Though the

lifetime fuel and maintenance savings help make the investment more attractive,

and the environmental benefits are a key part of our business objectives, the upfront costs are still daunting. In order to accelerate the procurement of hybrid

trucks into utility fleets, therefore, we believe some financial incentive will be needed in either the form of grants or tax credits. These financial incentives would spur

demand from PG&E and other utilities around the Nation that will allow truck and

power system manufacturers to expand operations and production, achieve economies of scale, and ultimately bring down the unit costs.

At a time of historically high diesel prices, increasing concerns over climate

change and energy security, the time is right to accelerate the research, development and deployment of hybrid and plug-in hybrid electric truck technologies. With

thousands of utilities nationwide, each deploying a fleet of trucks daily to points far

and wide within their service territory, the market for medium- and heavy-duty hybrid and plug-in hybrid electric trucks is significant. PG&E commends the Subcommittee’s inquiry into this important market and we are hopeful that with effective government leadership, the right incentives will be implemented to help reduce

the financial barriers that currently exist and that discourage widespread, rapid deployment of clean, hybrid commercial truck technology.

On behalf of PG&E, I want to thank you for the opportunity to appear before the

Subcommittee today.

Thank you.

BIOGRAPHY FOR JILL M. EGBERT

Jill is the Manager of Pacific Gas and Electric Company’s Clean Air Transportation department. She has worked for PG&E for over 25 years in a number of capacities, including governmental affairs, customer service, service planning and

community relations. She chairs the Greater Sacramento Regional Clean Air Coalition, sits on the Board of Directors for the California Natural Gas Vehicle Coalition

(CNGVC) and the Electric Drive Transportation Association (EDTA). Jill has a BS

in Business Management.

Chairman LAMPSON. Thank you very much.

Mr. Parish, you are recognized for five minutes.

STATEMENT OF MR. RICHARD C. PARISH, SENIOR PROGRAM

MANAGER, CALSTART HYBRID TRUCK USERS FORUM

(HTUF), DENVER, COLORADO

Mr. PARISH. Thank you very much. I would like to thank the

Subcommittee for inviting CALSTART here today to present our

36

viewpoint on heavy hybrid technology. We feel like we serve a very

important role in implementing this technology into the general

public and then also providing a means to focus the activity and

the interest of the different fleets in producing these types of technologies for use in the fleet activities.

I would like to draw your attention to my presentation charts

that are on the screen. The CALSTART activity is based, it is a

non-profit organization, a consortium of not only industry but also

fleet providers, that is very interested in improving the industry,

the transportation industry, and moving it forward in terms of decreasing the amount of fuel used and decreasing the amount of

emissions that are produced by the commercial industries.

HTUF, the Hybrid Truck Users Forum, is actually a subset of

the CALSTART activity and is a user-driven process in which we

represent the fleets and try to bridge the gap between the technology development activity and the actual commercialization of

these vehicles. HTUF intends to bring working groups together of

fleets that are quite interested in a variety of different applications.

Our first activity that we put together was in the utility bucket

truck activity, which PG&E took part in, and we simulated the different requirements from the various fleets to identify a common

set of requirements that the truck manufacturers could then respond to.

So what we did was get the hybrid truck technology off the

ground. There had been some development of heavy hybrids in the

Department of Energy as well as U.S. Army National Automotive

Center, and the Federal Transit Administration, but there was no

real pull from the fleet side to actually get these vehicles into service.

So what the Hybrid Truck Users Forum did was aggregate the

requirements to provide a focal point for the industry to then start

producing these vehicles. We did this in a joint activity with U.S.

Army National Automotive Center. They are very supportive of this

particular activity, because the Army is very interested in seeing

the hybrid technology being implemented and being put out on the

street so they can see a reduction in the cost of these vehicles rather than footing the cost of developing this type of technology on

their own. They would like to see it become commercially viable

and therefore, more cost effective in putting in the military vehicles.

So we have been very active in terms of this first particular

working group that we put together. We have looked at other working groups and are in the process of implementing those as well.

You should be aware that hybrid trucks and medium- and heavyduty trucks are very different than the light-duty vehicles. We have

seen a great implementation of light-duty vehicles, hybrid vehicles,

in the public sector. There is good acceptance there now, but we

feel like because of that acceptance that the government should

now start focusing on medium- and heavy-duty sectors to start

making some real technology improvements and implementation of

these new vehicle concepts.

On this timeline you see where there is a real range in implementation of these particular vehicles. On the far right we are already in early production as identified by Mr. Smith from Eaton

37

Corporation. We are in early production of these bucket truck vehicles from International using the Eaton drive train, and that is

very encouraging, but these vehicles are still rather expensive.

There are other vehicles that are being implemented in terms of

the refuse vehicles, parcel delivery, also shuttle bus type of vehicles

that are going to be entering early production here in the next few

years, but still the technology is not there to implement some of

the benefits that we see in the light-duty world. In particular, I

think it was pointed out that light-duty vehicles have the ability

to shut off their engines when they are at a stop, engine off at idle

capability. Right now we do not have that capability in mediumand heavy-duty trucks because we do not have the electrically-driven accessories that are required. So much development is required

in getting that type of technology in place.

So we are seeing just the first versions of these vehicles emerging at this point in time, and much technology development is still

really needed to make these viable.

And was as pointed out earlier, hybrid technology is starting to

be incorporated in Class eight over-the-road vehicles, and are now

being looked at in drage vehicles for the ports, particularly ports

of LA and the ports of Long Beach. And these are very promising

types of technologies, but until we get the appropriate support for

the technology, development, as well as the implementation of

these vehicles, and then some incentives to help reduce the upfront costs, they will be lagging in terms of their implementation.

So as identified, the trucks are different from passenger cars,

even though the technology has been well developed for passenger

cars, and we see it starting to emerge, trucks are a different order

of magnitude in terms of their weight, class, and the scale of the

systems that need to be put in place, as well as the durability that

is required for these vehicles. So there is a whole new segment of

development activity that needs to take place here.

We feel that industry and the fleets could benefit from support

for ongoing R&D. There was some preliminary R&D efforts involved at the Department of Energy under the Heavy Hybrid Program managed by the National Renewable Energy Lab, but that

funding has been reduced and is now coming to a close. And but

without the full benefit of coming to fruition for these new technologies. So we would like to see some further support for that type

of R&D effort.

And we would also like to see that there be some purchase incentives. As was also pointed out the initial costs of these vehicles is

fairly high. The cost of the fuel at this point in time, even though

it is high, does not quite cover the total cost of the differential cost

of the hybrid vehicle. So what we are seeing is some additional

funding needed up-front to help cover that differential.

So we would also like to see a commitment by the government

over a long-term, five- to ten-year program, to really implement

these technologies, not only hybridization, but also more efficient

truck technologies into the commercial fleets.

I would like to thank you very much for the opportunity to talk

with you today and hopefully we have a good discussion.

[The prepared statement of Mr. Parish follows:]

38

1The NAC is the Army’s outreach arm to the commercial transportation industry, and is

charged with both understanding the capabilities of the commercial vehicle industry and working to increase the capabilities of the industry to build advanced vehicles and technologies that

can support emerging Army and military needs.

PREPARED STATEMENT OF RICHARD C. PARISH

CALSTART thanks the House Committee on Science and Technology, Energy and

Environment Subcommittee and its members for the opportunity to testify and

share our knowledge with you on the important issue of hybrid and more efficient

medium- and heavy-duty vehicles. This is a critical area of emerging capability for

the U.S., both in terms of reducing fuel—and cutting costs—for users, as well as

reducing urban pollution and global warming emissions. It is also an important competitive leadership issue for U.S. manufacturers building leading-edge products here

and for export to the international market.

CALSTART and its Hybrid Truck Users Forum (HTUF), together with its industry, fleet and public partners, are working together to speed hybrid and advanced

truck commercialization and have identified the key benefits and barriers to

progress which we welcome the chance to explain. We think there is an opportunity

for smart, targeted investments and partnerships between industry and government

to speed these new capabilities to market.

Our testimony will follow this outline: A brief introduction to CALSTART; the

Role & Goals of HTUF; the Importance of Hybrids; the State of the Industry; Gaps

and Barriers; Next Steps; Future Vision.

What is CALSTART?

CALSTART is North America’s leading advanced transportation technologies consortium. It is a fuel and technology neutral, participant-supported non-profit organization of more than 150 companies and agencies, dedicated to expanding and supporting a high-tech transportation industry that cleans the air, creates economic opportunity and reduces imported oil use and greenhouse gas emissions.

CALSTART serves as an unbiased, strategic broker to spur advanced transportation technologies, fuels, systems and the companies that make them. It works

across four areas to expand and support this industry: operating technology development and demonstration programs with industry partners; consulting to ports, fleets

and others on implementation of new fuels, vehicles and technologies; providing

services to industry members to expand their capabilities; and supporting and guiding the creation of policies that increase the efficiency and reduce the emissions of

U.S. transportation.

CALSTART plays a leading national role in facilitating the development of advanced propulsion systems and alternative fuels in the heavy-duty vehicle and transit industry. It helped create the capability for heavy-duty hybrid drive systems in

transit buses in program partnerships with DARPA, and now leads efforts in advanced commercial vehicle hybrids, fuels cells, hydrogen and biofuels. Founded in

1992, CALSTART is headquartered in California but operates nationally and internationally in its programs.

Role and Goals of the Hybrid Truck Users Forum (HTUF)

The Hybrid Truck Users Forum (HTUF) is a national program made up of firstmover fleets and major truck and system makers to speed the commercialization of

medium- and heavy-duty hybrid vehicles and to build a competitive, sustainable

medium- and heavy-duty hybrid vehicle market. HTUF is operated by CALSTART

in a unique partnership with the U.S. Army Tank-Automotive Research, Development and Engineering Center (TARDEC)—National Automotive Center (NAC).1 Additional program support has been provided by the Hewlett Foundation, with some

project funding from the Department of Transportation and the Department of Energy. HTUF has proven to be a highly successful program to jump-start the commercial hybrid truck industry in North America. Its track record of success, and the results in terms of industry development and product launches, has benefited truck

makers and suppliers as well as military planners keen on supporting a dual-use

commercial manufacturing capability for advanced trucks. HTUF is credited with

removing one to two years from the product development cycle.

HTUF was designed to fill what was clearly a gap between technology development and products moving into the market. What was needed was a nimble, fasttrack process for commercialization. HTUF’s model for action focuses on truck users

to create market ‘‘pull’’ (demand) around their needs for saving fuel, reducing emissions and noise and better performance. HTUF now works with more than 80 national fleets representing more than one million vehicles on the road, and all major

39

truck makers and system suppliers. HTUF has identified the most promising early

uses of hybrid technology (such as refuse, delivery and utility trucks), is working

with fleet users of these vehicles to determine their common needs, and then is organizing these committed users to purchase and use commercially-built hybrids that

meet these requirements. For the commercial industry, this has significantly accelerated their time to market by allowing them to focus on the most promising first

markets. Product improvement is also much faster because customers share information and needs in real time with suppliers during assessment and development.

There is an additional benefit in the model—reducing cost and time for the military user. By developing a commercial manufacturing base and market for similarly

sized and functioning systems, eventual costs to military users are reduced. The

time to source and deploy future military systems is reduced, as well. By partnering

in early commercial deployments, the military is able to assess performance, designs

and architecture at extremely low cost. And by being active in the performance requirements, future military capabilities, such as silent watch, are designed into

commercial systems from the start.

HTUF fleets have already launched or completed several fast track projects. Fourteen initial fleets ordered, deployed and assessed 24 utility hybrid trucks in a national pilot program, demonstrating up to 50 percent fuel economy improvements

and exceptional reliability. This effort led directly to a follow up order of more than

100 trucks and has now helped launch early hybrid production in this class of medium-duty trucks. HTUF fleet working groups in the parcel, refuse and small bus

categories are launching similar pilot efforts to spread hybrid truck applications. A

new working group—in full-size, Class 8 long haul trucks, plans to deploy some hybrid ‘‘big-rigs’’ by late 2008. As a result of the HTUF process, the commercial industry is now rapidly developing early heavy-duty hybrid products in several different

market applications. First assembly line production has now started and additional

product launches are pending.

Importance of Hybrids

Hybrid technology is a transformative technology for transportation. Future vehicles need to reduce urban pollution while also cutting fuel use. Few technologies can

do both: hybrid can, increasing efficiency while also reducing emissions. Not only

can it provide immediate benefits today, in terms of reduced fuel consumption, reduced criteria emissions and reduced greenhouse gas emissions, it also is an enabling architecture for future reductions and improvements. Once hybridized, vehicles can become more effective platforms for additional improvements, including the

40

use of electrified, more efficient components, the use of downsized and optimized engines and combustion schemes, and enabling a transition to greater engine-off operation with enhanced energy storage. The stored energy can come from cleaner fuel

sources—such as electricity—in plug-in variants. For the military, hybrids provide

not just reduced consumption—which means a reduced supply chain and longer endurance—but also advanced capabilities. Military vehicles desperately need increased electrical power in deployed vehicles, and military users desire greater

power generation in the field: both are inherent capabilities of a hybrid electric system. Military planners also seek engine-off ‘‘silent watch’’ functionality, which is the

ability to support vehicle functions from stored energy without using the noisy—and

detectable—engine. Hybrids deployed in assessment by HTUF and the NAC have

already proven-out this stealth function. Advanced versions can allow ‘‘stealth’’ driving, as well—vehicle movement for limited distances without the engine starting.

State of the Industry

Hybrid truck technology has made significant strides in the last several years and

is now on the ‘‘cusp’’ of commercialization. However, unlike passenger cars, where

hybrid technology has been in production for a decade, first hybrid production is

only now just starting in the truck industry. Integrating hybrid technology into

truck platforms presents different challenges than in passenger cars, requiring different strategies, packaging and weight concerns, system designs and component

sizing. The market drivers and purchase criteria are completely different in the

commercial vehicle market than in the consumer market. Therefore, it is fair to

think of hybrid trucks as being ten years behind the auto industry and also needing

very different research, development and market acceptance tools to support them.

So far, unlike the automotive industry, the leaders in medium- and heavy-duty

hybrids are U.S.-based manufacturers. This is a significant advantage to the Nation.

However, that leadership is not assured. More than six truck makers and ten system makers are now developing heavy hybrid prototypes or pre-production products

in first applications, but the effort has not yet achieved critical mass and is at an

important point in its evolution. To break out, these first efforts must succeed and

expand. One of the key early barriers to success is that production volumes are low,

so prices remain high.

41

On target with HTUF’s intermediate goals, the first U.S. truck maker entered

early assembly line production of hybrids in October 2007. International Truck and

Engine Corporation, using an Eaton Corporation hybrid electric drive system,

launched the DuraStar hybrid truck. It is now available in limited quantities from

all its dealers in North America. The company can build up to one thousand trucks

its first year. This capability was assisted directly from HTUF’s efforts. Two other

truck makers, Peterbilt and Kenworth, have announced early production plans for

2008, including hydraulic and electric hybrid offerings using Eaton systems, and

Peterbilt is developing a Class 8 long-haul hybrid truck. Azure Dynamics will start

producing a hybrid chassis with Ford in 2008. Freightliner has recently announced

it will join International, Kenworth and Peterbilt in the medium hybrid truck market. Volvo/Mack has announced a hybrid truck capability in the 2009/2010 timeframe. Other companies are show-casing capabilities and prototypes, including

Dueco with an Odyne plug-in hybrid utility truck, Oshkosh with an electric refuse

collection truck, Crane Carrier with both an electric hybrid featuring an ISE

driveline and a hydraulic hybrid featuring a Bosch Rexroth driveline. BAE, Allison,

Parker Hannifin, Hybra-Drive, Permo-Drive, Enova Systems and ArvinMeritor are

other examples of suppliers with active development efforts, some of which already

produce hybrid systems for transit or other applications.

Initially there was skepticism by some whether hybrid technology would have a

broad enough application to all trucks. Certainly initially, it is clear there are some

first ‘‘beachhead’’ markets and applications for hybrids, such as refuse, urban and

regional delivery, utility and similar work truck applications. However, these early

markets are just the beginning, not the end pint, for hybrids. HTUF and partner

testing are showing that hybrid technology delivers greater fuel economy in almost

every duty cycle. The key early issue is to place hybrid vehicles where they will

have the highest initial payback. However, as system costs come down with increased volume, improved system design and integration and new technologies, hybrid drivelines will steadily be applied in more and more market segments. Indeed,

the next breakthrough in hybrid technology appears to be Class 8 long haul trucks,

the highest fuel using truck class. Five truck-makers have public or private programs to develop this capability, currently led by Peterbilt-Eaton. Hybrid systems

may contribute three to four percent fuel economy improvements alone; combined

with their built-in ability to provide idle reduction savings, this could approach six

to eight percent improvements. Hybrid technology actually shows the future capability of addressing a significant percentage of the truck fleet, building out of first

markets in heavy urban work trucks.

Gaps and Barriers

Hybridizing the truck driveline is a key stepping-stone to future advanced capabilities in both hybrid and conventional trucks. If we are to reduce petroleum use

(and address climate change) it is one of the key technologies to achieve that. Yet

truck and system makers need public sector support and partnerships to bring these

important technologies forward as quickly as the Nation needs them. The industry

is resource constrained: as much as 80 percent of the engineering talent at the truck

and engine makers has been focused, rightly, on the emission reduction requirements of 2007 and 2010. To support a parallel and fast-track effort in hybrids, critical as it is, is more than the industry can do alone. Industry needs government

partnership and shared risk and investment to make it happen as fast as it is needed.

The core early barriers to fleet adoption are clearly high unit cost mostly due to

low manufacturing volumes and the lack of a robust component marketplace. Assistance to help fleets cross this first market incremental price barrier would be extremely helpful. However, fleets also need additional in-use performance data and

validation to help justify their capital investment in these new systems, and assistance to aggregate their demand with other fleets to speed purchases. Together with

this is industry’s need for additional development and testing of new components,

better system integration and advanced capabilities. In essence, hybrid trucks are

at the emergent stage of technology; the performance shown by early vehicles is just

the beginning of what future hybrid and advanced capabilities can be.

Given these observations, CALSTART/HTUF has identified with its industry and

fleet partners the core needs for continuing momentum in hybrids, and they fall

along the stages of development:

• Need for continued funding of research and development in core hybrid and advanced systems (R&D—development stage)

• Need for continued funding and partnership in fleet support/pre-production demonstration and pilot projects to assess and validate hyVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00045 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
42

brid performance and reliability (Demonstration/Validation—pre-production stage)

• Need for fleet purchase assistance in the early market stage to speed

introduction and rapidly increase manufacturing volume (Purchase

Incentives—early market stage).

In terms of R&D, the core technology development needs now are for improved

system integration and manufacturability, reduced energy storage costs specific to

commercial vehicle designs, electrified components (to enable even greater fuel economy gains in all trucks, and more capable hybrids in particular), optimized and

downsized engines, advanced combustion schemes, power generation, light-weight

materials, and advanced control systems.

It’s important to understand that there are still technical barriers for trucks and

buses that are not the same for passenger cars. For instance, there is no commercially-available electrically-driven air conditioning, steering pump or other components yet in the truck world. There are expensive prototypes, but no systems that

can hold up to heavy-duty vehicle duty cycles. This is a core area of need, because

their availability not only enables more-effective hybrids, they make for more efficient conventional trucks as well. Optimized engines are another good example. Specifically because a hybrid drive system allows the main engine to work differently,

and usually to work less or work in a narrower power range, cleaner and more efficient engine designs are possible, such as Homogenous Charge Compression Ignition

(HCCI). Such engines are more difficult to use if they must cover the full range of

a conventional truck’s power needs, but may be possible when functioning in a more

limited power range coupled to a hybrid system.

The medium- and heavy-duty industry would greatly benefit from support across

all three of the stages identified above to more rapidly improve the fuel efficiency

of the heavy truck sector, which has the highest per vehicle fuel use, and therefore

the highest pay-back potential for investment. Yet investment has been sorely lacking for the commercial vehicle platforms, or applied in a less than focused way.

It is worth noting that Department of Energy projects to help develop and test

early heavy hybrid technologies, managed by the National Renewable Energy Lab

(NREL), were very useful and moved specific technologies forward that are in products we are now seeing today in transit hybrid buses and medium hybrid trucks.

Unfortunately, most of that funding and commitment has ended.

Similarly, significant progress was made to drive the core hybrid driveline

functionality via early Department of Transportation–Federal Transit Administration and Defense Advanced Research Projects Agency (DARPA) funding in the

1990s. These were exceptionally innovative programs.

Missing from all these efforts was not only a longer-term duration, but support

and strategies that moved technology along all the stages of development.

The commercial vehicle segment has not been a high enough priority for funding.

It has also been assumed that investments made in passenger cars are sufficient

to support commercial vehicle needs. The truth is, there are important differences

between commercial and consumer—truck and car—hybrid vehicles in terms of duty

cycles, system architectures, market needs and business cases. A portfolio of smart,

targeted funding over a multi-year period and covering all the stages identified

above and aimed at the needs of the commercial industry would have significant impacts.

The Army has been a great partner and leader, supports this effort and has directed internal funds to it, but resources to completely support the needs and develop new capabilities are limited by the Army’s immediate priorities. Additional

broader support is needed to accelerate the effort and achieve critical next steps to

develop a national heavy hybrid capability.

Next Steps

HTUF itself, together with its partners, are currently focused on a multi-year

strategy that envisions creating a sustainable hybrid and high efficiency truck market over the next seven years, and working to develop the support to achieve this

vision. Hybrids are the first and critical component of the move to high efficiency

trucks. To achieve this will require building both market volumes in early applications, and adding new capabilities to both hybrid and conventional trucks over this

time frame. To do this effectively will require government partnerships and risk

sharing with the industry and fleets.

To succeed will require a robust, self-sustaining hybrid truck market, with offerings across multiple platform sizes and applications. To achieve these goals HTUF

needs to continue to recruit and educate fleets in the targeted segments, and ensure

that pre-production and early production commitments are achieved in these segVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00046 Fmt 6633 Sfmt 6621 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
43

ments over the next several years. This will also entail opening new segments as

price points allow, such as industrial/non-road vehicles and drayage trucks.

Hybrid alone will provide such benefits in many but not all duty cycles. It will

require enhanced capabilities to achieve these levels, including optimized engines,

improved energy storage, light-weight material use, more efficient components, better aerodynamics in long haul applications, plug-in hybrid modes, and other strategies. Such enhancements enable the increased capabilities of quiet, engine-off operation and the ability of some trucks to be mobile power generators for emergency

and work needs.

Importantly, these same improvements that increase the capabilities of hybrids

also increase the fuel efficiency of conventional trucks. This concurrent move of hybrids into Class 8 heavy segments and the focus on improving core truck components is the leverage point to much more broadly impact the truck industry. By targeting users demanding increased fuel efficiency, working with regulatory agencies

to develop accepted metrics for hybrid fuel efficiency and expanding the suite of enabling and enhancing technologies for hybrids, we will provide the platform and the

pathway for measuring, delivering and expanding improved fuel efficiency in all

trucks.

Future Vision

The government has a rightful and needed role to play at each stage of hybrid

and high efficiency truck and technology development, and it is likely a different

role at each point. If government agencies were to commit to moving forward

medium- and heavy-duty hybrid and high efficiency trucks following an integrated

plan and an ‘‘investment’’ strategy for the use of funding, that would be extremely

useful and cost-effective for the industry.

In light of the growing market penetration and public acceptance of hybrid

drivetrain technology in light-duty vehicles, the government can now direct a concerted focus on the medium- and heavy-duty sectors to further advance the technology benefits.

It is important to note that assistance is needed now. The industry is at a critical

stage and on the threshold of a successful launch. However, this launch can also

be viewed more broadly as the first stage of a transformation of transportation technology. What is required is a commitment to a major program, on a par with lightduty efforts, to move medium- and heavy-duty vehicle technology to the next level.

Therefore, looking forward in the broadest sense, CALSTART could envision a high

profile program built on these parameters:

44

• First, a commitment to target, support and fund over a multi-year period the

steps required to achieve commercialization outlined earlier: R&D; Fleet Support and Pre-production Demonstration; and Purchase Incentives. To get maximum effect, an integrated strategy encompassing all three is needed.

• Second, government’s role and risk should be different at each stage, as is acknowledged already in most programs. However, a portfolio approach as to

how much funding to apply to each stage, and a commitment to do so consistently over several years, would be most beneficial to the market. It would

focus industry technology investments and engineering resource allocation as

well as signal to private investors where to extend their investment into innovation in new technology. Such signals can often leverage as much private resource as direct governmental funding.

Æ Research and development might rightly make up 15–20 percent of such

a total government partnership portfolio, with pre-production demonstration, testing and validation an additional five to ten percent. We can see

the need for purchase incentives, based on a sliding scale determined by

truck size and level of increased efficiency, and declining over time, making up as much as 70–75 percent of this overall portfolio.

• Third, it is highly important that research, development and demonstration

activities be designed and operated to encourage competition, innovation and

new players. Past efforts in some agencies have been closed to any but a

handful of manufacturers and suppliers, a constraint unlikely to speed new

approaches. Additionally, a commitment to spur action and achieve aggressive

outcomes would add energy to the program. We can envision a ten year commitment to achieve 40–50 percent fuel economy gains as an average across

all new trucks as a starting point for discussion.

• Fourth, such a program structure would ideally take place over a minimum

of five years and be led by an agency or partnership that sees the value of

and desires action to occur. Given the likely growing concerns with reducing

foreign oil imports for energy security, the need for greater fuel efficiency to

save truck operators money and secure jobs, and the need for significant carbon reductions in the future, a ten year program would be ideal as a clarion

call to and a signal of commitment and action.

• Fifth, the level of investment should be commensurate with the needs and the

challenge. California has recently enacted a high tech and fuel investment

program (Assembly Bill 118) that will invest $200M per year over seven years

in new transportation technology and fuels. Given this precedent in only one

state, we would recommend at least a comparable federal effort, but targeting

hybrid and high-efficiency medium- and heavy-duty vehicles over ten years.

This can serve as a framework for the effort needed to ensure U.S. manufacturing technology leadership and meeting its energy security and greenhouse

gas emissions goals. Based on the investment portfolio proposed, this could

mean $40–$60M per year for R&D and fleet support/pre-production deployments, and $140M per year for purchase incentives. This balance can also be

modified to ‘‘front load’’ the investment in the early years and decline over

time, from $400M/year down to $50M in the final year. Purchase incentives

can also be structured to decline over time.

Such program commitments and integrated strategies are difficult to coordinate

across different agencies, as demonstrated by the limited success of some previous

efforts. However, it is possible that motivated agencies can be determined to carry

out segments of the total strategy. The Department of Transportation already has

responsibility for setting truck fuel economy standards; its Federal Transit Administration has helped spur hybrid bus acceptance; the Environmental Protection Agency is establishing truck fuel economy testing protocols; the Department of Energy’s

NREL has managed R&D and testing for heavy hybrids; The Department of Defense’s NAC has invested in both targeted hybrid R&D and in pre-production pilot

demonstrations. A coordinated approach is critical, as is a strong and willing commitment to lead. The DOD’s NAC is a good example of an agency taking a focused,

outcome-oriented approach and achieving measurable results. Such characteristics

have been the hallmark of past successful efforts in which we have experience.

Again, thanks to the Committee, staff and Members for the opportunity to provide

this testimony and share the progress to date we have seen in medium- and heavyduty hybrids, and the significant benefit we could create for our industry and nation

with a focused and strategic commitment to move change in this field.

45

BIOGRAPHY FOR RICHARD C. PARISH

EDUCATION:

University of Texas–Austin, 1980—MS, Mechanical Engineering

Thesis: Performance Analysis of the Gateway Solar Energy Project

University of Texas–Austin, 1971—BA, Anthropology; Math minor

REGISTRATION:

Professional Engineer, State of Colorado

EXPERIENCE:

5/06–Present—WestStart-CALSTART; Denver, Colorado

T3Senior Program Manager (May 2006 to present)

Leading the Hybrid Truck Users Forum (HTUF) program activity to assist

in the commercialization of medium- and heavy-duty hybrid vehicles. Specific responsibilities include: leading the Hybrid Refuse Truck, Class 8, and

Parcel Delivery Working Groups; overseeing the Shuttle Bus and Utility/

Specialty Truck Working Groups; and organizing and implementing the annual HTUF National Meeting.

2/92–4/06—NATIONAL RENEWABLE ENERGY LABORATORY (NREL), Golden, Colorado

Senior Project Leader—Transportation Systems (Jan. 2000 to Apr. 2006)

Led three Department of Energy (DOE) funded tasks: 1) Gaseous Fuels; 2)

Advanced Heavy Hybrid Propulsion Systems; 3) Power Electronics Systems.

Developed medium- and heavy-duty natural gas engines and hybrid electric

technologies and vehicles through in-house and subcontracted efforts with

engine and vehicle manufacturers. Managed $6.2M annual budget. Previously initiated and managed a project to provide technical assistance

(Tiger Teams) to Clean Cities organizations attempting to implement alternative fuel vehicles. Simultaneously led the Advanced Vehicle Testing Activity for test and evaluation of emerging, alternative fuel vehicle technologies. Participated in the California Fuel Cell Partnership, Fuel Cell Bus

and Light-Duty Vehicle Working Groups.

Senior Project Leader—Federal Energy Management Program (Sept. 1996 to

Dec. 1999)

Implemented DOE Federal Energy Management Program (FEMP) projects

to conserve energy and incorporate renewable energy technologies in federal

facilities. Assisted the Environmental Protection Agency (EPA) in establishing an Energy Savings Performance Contract (ESPC) to upgrade and

create a renewable energy showcase for their Ann Arbor, Michigan facility

HVAC system. Assisted NASA Headquarters Energy Manager in developing

an ESPC and renewable energy program for their field offices. Worked

closely with a subcontractor expert in building energy evaluation to perform

preliminary evaluations of various federal facilities to implement renewable

energy and energy efficient systems.

Senior Project Leader—Thermal Systems (Feb. 1992 to Aug. 1996)

Led the development of a variable-conductance,vacuum insulation system to

be used for the thermal control of high-temperature advanced batteries in

electric vehicles. Managed budget, schedule, technical personnel, research

constraints, and performance to technical requirements to maintain the

project on track. Managed laboratory test activities, evaluating test procedures and results, to accomplish multiple, parallel test goals. Interfaced

with the primary customers, the U.S. Advanced Battery Consortium

(USABC), which was composed of auto and battery manufacturers, to refine

project requirements and goals. Managed the project to implement these in

a timely and efficient manner. Performance under the original $3.5M cooperative research and development agreement (CRADA) resulted in a $600K

supplemental contract with the USABC, which was managed concurrently

with the original project.

Active participant in the NREL2000 activity to streamline operational processes within the laboratory. Led a sub-team focused on improving the operations and reducing costs within the NREL Facilities Office.

46

10/80–1/92—NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

(NASA), Houston, Texas

Space Station Thermal Systems Integration Manager (Sept. 1990 to Jan.

1992 and Dec. 1988 to Sept. 1989)

Responsible for the coordination and integration of the Space Station Thermal Control System (TCS) design between the participating NASA centers

and International Partners. Charged with managing the TCS Architecture

Control Document, which served as the system definition and design requirements document. Actively served as the Chairman of the TCS Working

Group composed of NASA and International Partner thermal system experts, conducting Working Group meetings, resolving interface issues, creating action plans, and coordinating the goals of the Group. Thermal System prime point-of-contact for the NASA Space Station Program and

Project Offices.

Planet Surface System, Systems Engineer (Sept. 1989 to Sept. 1990)

Performed as lead engineer in the development of planet-surface system

concepts and element designs. Responsible for coordinating and managing

line organization support to the Planet Surface System (PSS) Office. Served

as alternate to the PSS Manager at agency-wide Program Review Boards.

Frequently acted in the stead of the PSS Manager in his absence. Responsible for organizing and directing the PSS Technical Status Review Board

with the goal of interaction and communication between the various NASA

centers’ engineering and project office organizations.

Space Station Heat Acquisition and Transport Subsystem Manager (Jan.

1988 to Dec. 1988)

Responsible for the design, development, test, and evaluation of critical

Space Station thermal control subsystem hardware. Developed system design requirements, test requirements, test plans, and hardware performance criteria for candidate active thermal control systems.

Thermal Transport System Development Contract Manager (Jan. 1984 to

Dec. 1988)

Acted as contract technical manager for development contracts focusing on

technology advances in two-phase (liquid/vapor) spacecraft thermal transport systems as well as specific hardware components of the systems, such

as contact and integral heat exchangers and rotating fluid couplers. Total

contract value was approximately $5 million. Development efforts included

design and implementation of reduced gravity flight tests.

Microgravity Research Principal Investigator (Jun. 1984 to Jan. 1988)

Established requirements and preliminary designs for experiments to investigate the behavior of liquid/vapor fluid in the microgravity environment.

Coordinated research efforts with thermal technology development activity.

Thermal Analysis Development (Jan. 1984 to Oct. 1985)

Initiated the development of ‘‘next generation’’ thermal analysis programs

for utilization with two-phase thermal control systems. Provided analytical

support for preliminary design of Space Station thermal tools.

Shuttle Vehicle Thermal Model Development (Oct. 1980–Dec. 1983)

Generated and correlated detailed thermal models of portions of the Shuttle

vehicle using SINDA and TRASYS analysis tools. Provided real-time mission support and post-flight data analysis.

DISCUSSION

THE FEDERAL GOVERNMENT’S ROLE IN PROMOTING HEAVY

HYBRID TECHNOLOGIES

Chairman LAMPSON. Thank you, Mr. Parish.

At this point we will open our first round of questions, and the

Chair will recognize himself for five minutes.

Mr. Penney, let me ask of you, what, at what point in the development do you feel that it is appropriate for DOE involvement to

47

begin to drop off? And secondly, should we focus only on the most

basic research, or do we have a responsibility to see that technologies get to the market, and where are they weakest?

Mr. PENNEY. That is a good question. The opportunity from my

perspective I enjoy seeing systems level approach. When we work

on components, which is essential and required, you sometimes

don’t, when you put all the pieces together, you learn new things,

and I tried to emphasize in my testimony that a systems approach

is absolutely critical.

Now, the Department of Energy has classically funded on the

component level for energy storage, power electronics, thermal controls, and issues like that. They have drawn the line because they

feel that industry’s responsibility is to put that system level together. As was pointed out by Mr. Parish, we did have a few

projects with Oshkosh truck, with Eaton, and Allison Bus transit

fleets. The system level performance really taught us new things

that we didn’t learn from just component-type activities. And all of

these companies benefited greatly by that education, and they

would not be there today had it not been for that federal support.

PRICING

Chairman LAMPSON. Thank you. Mr. Smith, what is the price

premium for an Eaton hybrid truck compared to a conventional

model, and what accounts for the difference?

Mr. SMITH. Well, the difference is accounted for because of the

added componentry that we need to add. There is, in a parallel system like we provide, there is a motor generator that is in the system, there is a power electronics inverter that takes energy from

the batteries and feeds it to the motor or in the condition where

you are acting as a generator such as regenerative braking, you are

taking power back from the generator and feeding it into the batteries to recharge.

So the price premium that you are paying is for all of the additional components, plus all of the controls that make all of these

individual components work together, you know, efficiently and

safely.

As far as the price premium, that is actually an OEM decision

to the customer since we sell to OEMs and then the OEMs sell directly to the customers, but as Ms. Egbert mentioned, you know,

the 50 percent premium currently on a hybrid vehicle is probably

very close to what we are seeing out in the market today for a hybrid vehicle.

THE 21ST CENTURY TRUCK PARTNERSHIP

Chairman LAMPSON. Has the 21st Century Truck Partnership

been a success? And should it continue? And I would like for all

of you to comment on that, and add a second part to it. How could

the program be structured better to speed hybrid technology in medium and heavy truck, heavy-duty trucks?

And do you want to start, Mr. Smith?

Mr. SMITH. Yeah. It is actually not a topic that I am well informed on, and I can respond in writing at a later date to give a

full response from the Eaton perspective.

48

Chairman LAMPSON. Anyone want to comment on those two

things?

Please, Mr. Parish.

Mr. PARISH. Yes. I think the 21st Century Truck Program ideally

was very well conceived, and I think it started out with good promise, because we did have the involvement of a variety of different

federal agencies in that particular activity, and it looked like it was

going to be very constructive.

However, as it turned out, I think it had limited success, because

there was a lack of a real vision and adequate funding for the activity. I think as we have observed the 21 CT activity now is kind

of a gathering of interested parties that, you know, they are interested to see if anything is going to happen from the federal level,

but from what we have seen so far nothing has really been initiated, and there has been no real program activity that resulted as

a result of the 21 CT Program.

So I would say that, yes, as it is conceived it is a very viable and

very worthwhile type of activity, but I think it needs to be revisioned in terms of how it is led and make sure that there is an

agency that is very motivated to make it a success. And our association with U.S. National Automotive Center has proven that they

have the ability to——

Chairman LAMPSON. Mr. Penney, do you want to comment?

Mr. PENNEY. Yes. I am NREL’s lab rep for 21 CT. In fact, I canceled my trip today, they are having a 21 CT meeting at Volvo Corporation in Greensboro, and I think the issue as was pointed out,

there needs to be a flagship project, and I think getting together

and sharing the education that I talked about in the 21 Century

Truck Partnership has been very useful. We generally have at least

monthly phone calls, people share what is happening, what is new,

what are the issues that need to be worked on, but as Richard had

pointed out, the funding from DOE has been focused more on the

light duty because of the displacement of oil savings on the large

number of light-duty vehicles as opposed to the heavy-duty vehicles.

But I think we have talked in the 21 Century Truck Partnership

with all the members of a flagship project such as a super truck,

putting all these technologies together, aerodynamics, idle reduction, hybridization, start, stop, you know, these things as one big

package it would be nice to have a moon shot for a truck, so to

speak, especially on the Class eight applications, which, in fact,

could save a lot of oil.

Chairman LAMPSON. Thank you. I yield to Mr. Inglis for five

minutes.

SCIENTIFIC AND ECONOMIC BARRIERS TO DEPLOYMENT

Mr. INGLIS. Thank you, Mr. Chairman.

First of all, Mr. Smith, thank you for having, Eaton having a facility in Greenville, South Carolina. We are very happy to have you

there, and I will give you an opportunity to give a plug if you want

to about what you do there, especially if it relates to this or even

if it doesn’t. But figure out a way to work that into an answer,

would you? Do an advertisement for Greenville, South Carolina.

49

So I am sort of wondering here whether we are doing science or

economics. If it is science that is holding us back through the deployment of these technologies or if it is economics. The issue with

economics is you can approach it a couple of different ways. One

is you can do grants and tax credits and regulate things, or you can

unleash the power of the market. If you unleash the power of the

market, it seems to me the first step is to stop having free

externalities associated with incumbent technology, which is diesel.

If you attach the price to that, you internalize the externals to

that product, then that 50 percent premium becomes a much smaller premium. Right? Because then the freebie in the air that currently is, benefits the incumbent technology, which is diesel,

shrinks. And as it shrinks hybrids and every other kind of alternative suddenly becomes economically viable. Maybe not so suddenly but it becomes economically viable.

So which are we talking about here? Are we talking science that

is holding us back, or are we talking economics that is holding us

back?

Anybody want to tackle that?

Mr. DALUM. In my opinion it is both. I think there are some very

short-term benefits that could be gained in this area, in my view,

in plug-in technology, but those benefits are somewhat limited by

not performing enough research. The research in my view could improve the performance over what is available today. I am referring

to different powertrain designs which use smaller engines, larger

electric motors, different battery technology that I have not seen

available in a large capacity advanced battery for a truck.

So I think it is a little bit of both. I think we could move very

quickly if we had some research for specific applications and incentives, and then secondly, perhaps some research devoted to more

longer-term advancement of the technology.

Mr. INGLIS. And what you are selling today, is the electricity

used to charge the battery which then runs the powertrain or is it

like the Chevy Volt is going to do? That is the concept of the Volt.

Right?

Mr. DALUM. It is a parallel system, which means that the diesel

engine is always operating when the vehicle is moving, and that is

because as Mr. Parish had talked about, in the industry right now

there is not a commercially-available, high-volume, electrification of

certain subcomponents like the HVAC system, power steering,

brakes, and so forth.

So the engine is always running, and the electric motor provides

supplemental propulsion. Okay? So there are limits to its efficiency

gains because the engine is always running. The battery that we

use is a very large battery. It is a heavy battery, but it has been

around for a long time, and that is why we chose it, because it is

well understood technology. But it depletes. That means that you

charge it up at night, and you want the battery to deplete, and

then when you are done after the day, you charge it up at night.

That being said, this vehicle never, you never have to charge the

vehicle up, because the system will monitor the state of charge of

the battery, and the engine will turn on if it has to, but we try to,

you know, reduce that so that you can use grid power to recharge

the battery.

50

Mr. INGLIS. Right.

Mr. DALUM. I hope that answers your question. It is using both

diesel and the battery system to provide propulsion.

Mr. INGLIS. Is there an advantage to going to a system that uses

only electricity for propulsion?

Mr. DALUM. In my view there is in certain areas, and I am talking more about stop and go driving in urban areas. And perhaps

in what I would call mission that has a, or a job that has a short

duration travel to a job destination, that might be able to be performed under 100 percent electric operation for a limited range.

And then when you are at the job site, operate off the battery

power, and then return to the garage after the work is completed

and charge up overnight using power from the grid.

Right now the battery power that we have is not sufficient really,

though, for that kind of application. I think more research needs

to be done to provide that kind of power.

Mr. INGLIS. Mr. Smith, that commercial.

Mr. SMITH. Yes. Yes, sir. Or even an electrical group down in

your area.

Mr. INGLIS. Good.

Mr. SMITH. But if I could just comment on what Mr. Dalum said.

I think I would agree. It is a little bit of both science and economics. You know, to your question, you know, would it be better just

to be all electric, I think that is a question, though, that you can’t

meet all of the needs because of the very wide range of applications

that we are—and clearly a heavy-duty Class eight truck you would

never be able to get enough storage capacity on a vehicle to do

what it needs to do. Some of these work trucks travel far enough

distances in any given day that, again, you couldn’t store it.

But there are pick-up and delivery trucks like potentially a Fed

Ex, a UPS truck, depending on their duty cycle and where they

run, you might be able to get into a situation where you could run

that way. But the, you know, the hybrid and having the ability to

regen and recharge batteries on the vehicle I think will always be

a significant portion of the market, and you will need that.

Chairman LAMPSON. Thank you, Mr. Smith. I am sure the

Greenville Chamber of Commerce will be most appreciative of your

comments.

I now recognize Mr. McNerney for five minutes.

BATTERY TECHNOLOGY AND DISPOSAL

Mr. MCNERNEY. Thank you, Mr. Chairman. I want to thank the

panel. It has been a very interesting hearing, and it is an area that

a tremendous opportunity for our country. I particularly want to

thank Mr. Parish for coming from CALSTART. CALSTART is

working very hard to reduce emissions in the San Joaquin Valley,

which is one of the worst air pollution regions in the country. So

thank you, Mr. Parish, and Ms. Egbert for coming from PG&E, my

home utility company. I think your comments on reducing emissions by 50 to 70 percent is very important, and that is something

we need to keep in mind.

Stockton, which is the largest city in my district, has now the

highest gas prices in the country surprisingly, considering that it

also has the highest foreclosure rates, and I have seen or we have

51

seen a lot of hybrid technology on the highways with regard to private vehicles, but companies like BNSF are developing high-speed

rail, not high speed but rail hybrid technology. So there is a lot

happening, and it is very exciting to see it.

My first question is about the battery technology. There are four

things that I am concerned about. That is the cost of the technology, of course, the reliability, the life, and the disposal requirements for batteries. Is that something that they recycled?

Could Mr. Smith or Mr. Dalum take that question?

Mr. SMITH. Yeah. I can comment on it. The, you know, the Eaton

system currently is based on lithium ion batteries, and yes, those

are fully recyclable and can be handled safely in an end-of-life condition. I mean, it is, there are several current sources in the U.S.

where we can take batteries for appropriate disposal.

Mr. MCNERNEY. I spent much of my career in the manufacturing

industry, and there is a law that the, every time you double your

manufacturing volume, your cost goes down maybe 10 percent or

15 percent. Do you expect that sort of law to apply? In other words,

as we go up the manufacturing volume, are we going to see the

costs go down accordingly? Or is there some inherent cost barriers

that we are going to be facing with hybrids?

Mr. SMITH. I, we definitely believe that, that, you know, we are

currently, the price premium we are, our customers are paying

today is driven mainly by volume issues. As we can increase the

volume of the components, we expect significant price decreases. It

is all based, it is what you said. As we can drive up the volumes

and get into high volume, lower cost manufacturing processes, the

cost will come out.

Mr. MCNERNEY. Is the battery technology improving in a way

that will be parallel with the cost reductions or be contributing to

the cost reductions?

Mr. SMITH. Yeah. What we see today, and again, Eaton Corporation has chosen or chose very early on to pursue lithium ion batteries as the appropriate technology for this, for these vehicles, and

there is a lot of lithium ion batteries for hand tools, but they are

smaller cells, lower energy capacity. Those systems are already in

very high volume, manufacturing facilities, but the size that you

need for vehicles hasn’t made that transition yet. There is not, you

know, there is not the market demand driving that increase yet,

so we are on that road, but we are not to the point where we can

justify spending the money that you need into the manufacturing

facilities to increase the volume production and then ultimately get

the lower cost.

Mr. MCNERNEY. Mr. Penney, do you have comments on the battery technology?

Mr. PENNEY. Absolutely. I was in Tampa at the International

Battery Conference a couple of weeks ago, and as was said, the cell

size are like C and D size batteries, and even for the GM–Volt that

was mentioned, you know, you are talking thousands of batteries

and thousands of interconnects, and every time you have an interconnect, there is that potential for that string or module to go bad.

Furthermore, as you package more and more batteries together

for these heavy-truck applications, you have got to worry about

52

thermal issues. Thermal management of batteries is something

that we at NREL have focused on, are very important.

And then finally there is the control. The Prius, for example, was

mentioned. The state of charge in the Prius, you only use about a

quarter of that battery because the state of charge swing goes from

about 85 percent to 65 percent or 50 percent. So that is only a third

of the capacity. On many of these duty cycles and especially lithium, you can go from 90 to 10, 90 to 10.

And for a refuse example, they cycle that battery a thousand

times a day or that ultra cap. A battery can last maybe several

thousand cycles, several million cycles depending on that state of

charge swing, the temperature, and actually the life. And the point

is that all of these factors are unknown, and it is extremely difficult for these manufacturers to take the risk to say that this vehicle will last ‘‘X’’ number of miles and put a warranty on it. That

warranty cost and that backing of that component is a very, very

risky business at this point in time.

Mr. MCNERNEY. Thank you, Mr. Penney. My time has expired.

Chairman LAMPSON. Thank you, sir.

The gentlelady from Illinois, Ms. Biggert, you are recognized for

five minutes.

DEPARTMENT OF DEFENSE HYBRID EFFORTS

Ms. BIGGERT. Thank you, Mr. Chairman. I am one of those people that was around in the ’70s, sitting in the gas lines with three

little kids in the back, thinking I was never going to get a full tank

of gas again. And at that time everybody thought that, and then

suddenly all of this, the crisis ended, and we forgot about it. The

cars went back to being the SUVs and the heavy trucks and everything.

And I don’t think that that is going to happen again. I think that

we really see that the world has changed and that we have got to

reduce our dependence on foreign oil and gas and whatever.

But my concern is that, you know, we waited so long, and we are

still waiting, I think. We have got the hybrid car. I have one, and

yet the hybrid plug-in to me seems to be something that really is

going to, you know, I think revolutionize the industry of both cars

and trucks.

But trying to, you know, get the battery small enough and to last

long seems to be taking quite a bit of time, and I think that if we

are going to have the grid, then we have to have the nuclear power,

which is going to create the electricity rather than some other type

of energy.

My question is then how are, well, maybe start with Mr. Penney,

is NREL working with the Army or other, any other branch of the

military in the development of the hybrid truck technologies in

bringing down the costs of the hybrid trucks?

Mr. PENNEY. Probably the intersection is through, as was mentioned, the 21st Century Truck Partnership. We get most of our

funding, as you know, from the Department of Energy. We get no

funding from DOD or TACOM.

Ms. BIGGERT. Is, there was somebody else that mentioned the

military that—Mr. Parish.

53

Mr. PARISH. Yes. CALSTART works with the military and gets

some funding from the military to operate the Hybrid Truck Users

Forum Program. Obviously, we do feel like there does need to be

further development in the battery area, specifically for mediumand heavy-duty trucks. Right now trucks rely on battery packs that

were predominantly designed for light-duty vehicles. Even some of

the buses that we see up in the northwest and the Seattle area actually have Prius battery packs on them. These hybrid electric

buses.

And so what is really neat is some specific design of these battery packs for the medium- and heavy-duty operation, and then a

standardization of that battery pack so we can see the costs of the

battery pack come down and be available to a wide variety of manufacturers.

Ms. BIGGERT. Well, the military has been working on finding

lighter-weight material or metals for reducing the weight of tanks

and trucks and whatever. Is the industry looking at that also, like

say titanium?

Mr. PARISH. Yes. As a matter of fact, one of our participants in

CALSTART, Alcoa, is very interested in trying to identify new markets for aluminum in light-weighting of vehicles, and I think we

are going to start to see that emerge more importantly here as fuel

economy becomes more important for medium- and heavy-duty

trucks.

Ms. BIGGERT. Will that dramatically reduce the, if we reduce the

weight, then the battery will last longer and would that aid in the

development of the batteries?

Mr. PARISH. Well, it is kind of an integrated problem. We have

to approach it from a variety of different perspectives in order to

get the total benefit that we are looking for. So reducing weight in

heavy-duty vehicles, as well as increasing the efficiency of the battery packs, increasing the efficiency in the electrification of the

auxiliary systems is very necessary.

And then appropriate application of hybridization to the duty cycles of the vehicles is very important because it, there is a wide variety in the way these vehicles are applied, and so you get a wide

variety of benefit from the hybrid system as a result of the duty

cycle of these vehicles. So it is, there is a broad spectrum of technologies that need to be investigated in order to be integrated appropriately.

And also, downsizing and optimizing of the engines. Right now

hybrid trucks typically use diesel engines, however, the fleets are

now very interested fleets, such as Fed Ex and UPS, are very interested in seeing gasoline engines.

Ms. BIGGERT. How, you mentioned UPS and I might mention

that I do have an International truck in my district, and UPS has

a big facility not too far from us, since everybody is claiming something in their state, but with that, how, about how big is a fleet

of the UPS with the hybrid trucks versus regular trucks?

Does anybody know that as we have been talking about them?

Well, I will ask them later then.

Mr. PARISH. Well, they have just started incorporating hybrid

trucks. I believe they have maybe on the order of 200 hybrid electric vehicles at this point in time. UPS is also investigating hydrauVerDate 11-MAY-2000 09:29 Dec 08, 2008 Jkt 042802 PO 00000 Frm 00057 Fmt 6633 Sfmt 6601 C:\WORKD\E&E08\061008\42802 SCIENCE1 PsN: SCIENCE1
54

lic hybrid vehicles, and one of our working groups is focused on

bringing hydraulic hybrid vehicles to the parcel delivery segment.

So they are just being implemented. They are being tested, but

they need some improvements to really hit full stride.

Ms. BIGGERT. Thank you. I yield back.

Chairman LAMPSON. Thank you. Mr. Sensenbrenner, you are recognized for five minutes.

COMPETITIVE GRANTS

Mr. SENSENBRENNER. Thank you very much, Mr. Chairman.

First of all, I will claim Mr. Dalum as a constituent since everybody is putting their oar in the water here. And I also was around

when we had the gasoline crisis of 1979, and 1980. It was kind of

my baptism of fire as a Member of Congress because they had this

over-complicated allocation system, and since I represented an area

where the population was growing, the allocations were not

enough, and the problems were more acute. And President Carter

actually announced he was having the Bureau of Engraving and

Printing print up gas rationing coupons. We saw pictures of them

in the newspaper. Well, Mr. Carter didn’t make it through the next

election. President Reagan got rid of the allocation system. The gas

lines ended, people were able to have full tanks, the price went

down, and I don’t know if they threw the gas rationing coupons in

the trash or not, but we haven’t seen them, and that was about 30

years ago.

Now, that has convinced me that technology is the way to get out

of the pickle that we are in rather than government regulation or

taxes and more red tape and more Congressional casework for our

employees.

Now, the bill that I have circulated around here establishes five

grants for the development of plug-in hybrid trucks. In your written testimony, Mr. Penney, you state that there is no single hybrid

truck designer system that will meet all of our transportation

needs. And I guess my question I would like to ask of all five of

you in the remainder of the five minutes that I have is, are five

separate grants enough to be able to have a specific technology developed so that one of these technologies would end up being suitable for the various types of trucks that are on the road?

And since you brought the issue up, Mr. Penney, you can go first.

Mr. PENNEY. Thank you. You know, if you break down trucks

into various vocations as the class system tries to do, as I mentioned, each class, each vocation needs a different duty cycle, just

establishing and identifying and understanding that duty cycle is

very difficult. And there probably are more, circling more than five.

I think we identified maybe a dozen vocations which you would

have to focus in on.

Mr. SENSENBRENNER. Okay. That is asking a little too much, and

the Sensenbrenner rule of legislation is he who sticks snout in

trough too far runs risk of getting head chopped off. So I guess that

the competitiveness in the five grants is probably necessary.

How about you, Mr. Smith?

Mr. SMITH. Yeah. I guess I would say that, you know, is five the

right number? I guess I am not sure. I think really what we need

to look at is identifying the most likely paths to success or the

55

areas where we are furthest behind or we have the largest challenges.

Mr. SENSENBRENNER. But doesn’t the competitive nature that is

contained in the bill take care of that?

Mr. SMITH. I guess I am not sure. I need to review it a little bit

further so that I could comment on that.

Mr. SENSENBRENNER. Competitive grants work very well. Most of

the scientific grants that the Federal Government hands out,

whether it is in basic science or biomedical research.

Mr. Dalum.

Mr. DALUM. I think it is an excellent start. The five grants in my

opinion would allow a variety of different applications to be submitted, and I am talking about technologies that might be, as discussed here, for delivery trucks, utility trucks. There are other applications I think that could be submitted that could benefit from

plug-in hybrid technology, and those could also be part of that. So

I think it is a very good start.

Mr. SENSENBRENNER. Ms. Egbert.

Ms. EGBERT. I would agree. I think it is a very good start as well.

To start to get some of these technologies on the road and putting

them into real world applications I think will bring us a long way.

Mr. SENSENBRENNER. Mr. Parish.

Mr. PARISH. Well, from CALSTART’s perspective I think we

would prefer to see a more general type of a funding activity in

looking at medium- and heavy-duty hybrids specifically or generally improving that general technology with plug-ins being a subset of that general technology. So we feel that there is development

work that needs to be done, but if we focus strictly on the plugin aspect, that will just look at a very limited portion of the whole

spectrum of the activity that needs to be approached.

So, you know, our feeling is that we would really like to see

something more generalized than specifically plug-in.

Mr. SENSENBRENNER. Thank you. My time is expired.

Chairman LAMPSON. I yield myself as Chairman five minutes,

and I yield to Mr. Sensenbrenner for him to continue his questioning if you would like, Mr. Sensenbrenner.

Mr. SENSENBRENNER. No. I am done.

HYBRIDIZING OFF-ROAD WORK EQUIPMENT

Chairman LAMPSON. All done? Thank you very much. Then I

will, then let me ask any of you who would care to or all of you

if you want, are you aware of work being done to hybridize other

sectors such as heavy off-road work equipment, stationary power

sources or other applications?

Mr. Parish.

Mr. PARISH. Yes. As a matter of fact, CALSTART has just initiated a working group focused on commercial construction equipment. That is also being sponsored by the U.S. National Automotive Center, U.S. Army National Automotive Center, because

they are very interested in seeing obviously a fuel use by their construction equipment being reduced.

So what we have done is started some activity in bringing together the industry and the manufacturers, as well as the users of

this off-road equipment to see if we can stimulate some additional

56

activity in hybridization. We have already seen Volvo initiate a

front-end wheeled loader that is hybridized, and we expect other,

particularly U.S. manufacturers start to enter that as well. John

Deere as well as Caterpillar have both expressed a great interest

in off-road equipment hybridization.

Chairman LAMPSON. The Port of Long Beach, I understand, has

demonstration hybrid tugboats.

Mr. SENSENBRENNER. Yes, and they also are hybridizing the

crane lifts for the containers. So we see hybridization starting to

enter in a variety of different modes.

Chairman LAMPSON. The primary thing that we are going to

have to accomplish to facilitate all of that is going to be the battery.

Mr. PARISH. The battery.

Chairman LAMPSON. The link to the battery.

Mr. PARISH. And the auxiliary systems. You know, we can’t just

look at one aspect as Mr. Penney pointed out. If you look at just

one component of the system, then you may not get the full story.

You really need to look at the whole system affects and look at the

variety of different things that are feeding into that system operation. So it is not only the battery but it is an optimized engine

that operates on the hybrid system.

Right now the engines tend to be a little bit too large for the systems they are actually running, so you have to optimize those a little bit better, plus the control. And then also the electrical auxiliaries. If you could get electrical auxiliary systems or hydraulically

operated auxiliary systems, then that would improve even more the

efficiency gains.

Chairman LAMPSON. How long away are we from looking right

now, and what is it going to take for us for this function of money

that we have to throw at this to get faster results, get our in-gain

more quickly?

Mr. PARISH. Well, I think so. I think the first vehicles we have

seen out there by Eaton and International, which PG&E is using

and a variety of other utilities are using, have shown the benefit

of the hybridization.

However, in order for the next generation to come out, you know,

we saw the first generation of Priuses back in ’98, and then when

we saw the second generation of Priuses, which really mushroomed

because of the improvements in the design, we expect to see something similar in the medium- and heavy-duty truck category, where

this first iteration that has come out, you know, that it is a great

improvement over the conventional vehicle; however, there needs to

be a second iteration, and in order to accomplish that second

iteration, there has to be significant improvement in a variety of

different technologies.

Chairman LAMPSON. And industry is just not willing or capable

to do enough of that by themselves without government help?

Mr. PARISH. I think they have seen a downturn in their sales

they did last year as a result of the pre-buy for the 2007 emissions

regulations. They are going to see another big pre-buy for 2010

emissions regulations. So right now they are currently in a very

low slump. I think this last year they were in a very low slump

in sales, and so as a result of that they were probably unable to

57

spend the dollars that they wanted on research for hybridization,

and now they are also spending quite a few dollars on getting

ready for the 2010, emissions regulations.

So, you know, that is what we are seeing is they are, rightly they

are focused on trying to improve their products for the emissions

regulations, but because of that they don’t have adequate funding,

I feel, to do the research necessary to bring hybrids along.

Chairman LAMPSON. I would like to pursue that some more but

let me switch.

Just looking at the extensive membership list of CALSTART, it

would seem that the industry efforts are fairly well integrated

when it comes to new technologies. How integrated is the heavytruck industry compared to that for passenger vehicles, and how is

it different?

Mr. SMITH. If I could comment, I think there is a fairly significant difference, because if you look at the passenger car industry,

it is mainly vertically integrated. There is, you know, a high level

of oversight, design responsibility, integration responsibility that is

all maintained within the companies, the Fords, the Toyotas, you

know, whoever it is.

In the medium-duty, heavy-duty market it is quite a bit different, where I think there is a view that they are buying components that go on the system. They are buying a transmission or a

hybrid system that needs to integrate within the existing chassis

with as little disruption to the chassis as possible. And I think the

systems you see out there, I know the Eaton system we intentionally try to make it as non-obtrusive to the engine and the chassis as possible.

So there is some real challenges there because of the lack of, you

know, heavy integration or high level of integration in the vehicle.

Mr. DALUM. I would like to add that the vehicles that we are discussing are really, at least in the case of the utility truck, are built

in multiple stages, and what that means is that an Eaton here may

provide componentry to International, Ford, GM, or another chassis

manufacturer. That chassis is then provided to another company.

That company buys that and integrates their equipment on top of

the chassis and finishes the manufacturing process and then brings

it to market.

So unlike some other passenger cars, you have got various entities along the whole development chain here in going to market. So

it is not as integrated as a passenger car.

Chairman LAMPSON. Mr. Parish.

Mr. PARISH. Yes. One more additional comment. What we found

when we put the International Eaton bucket trucks out, those were

the first hybrid trucks that were really on the road for commercial

use. We found that there was some discord between the providers

as was identified, International, Eaton, and the actual arm manufacturer in terms of who was responsible for what if there was a

problem.

So unlike in a light-duty vehicle, a Ford or a Chevrolet, where

they are totally responsible for the vehicle, then because of the integration issues with a truck, it becomes then necessary to work

out who is responsible for the operation of the different aspects of

the vehicle.

58

So this is one area where some, you know, further development

activity needs to go on in terms to make everybody comfortable

with the product that they are offering and in terms of establishing

who has ultimate responsibility.

Chairman LAMPSON. Thank you very much.

Mr. Inglis, you are recognized for five minutes.

MORE ON SCIENTIFIC AND ECONOMIC BARRIERS TO

DEPLOYMENT

Mr. INGLIS. Thank you, Mr. Chairman.

You know, when it comes to basic science, grants seem to make

a lot of sense. National Science Foundation, for example, does basic

science, and there are no commercialization opportunities immediately apparent in a lot of that basic science, and therefore, the

government makes it happen by grants.

When it comes to applied technology like we are discussing here,

I sort of break out in hives at the mention of grants, because that

means grant writers and grant readers, it means regulations and

regulators, it means an awful lot of productive energy being spent

pursuing just a little tad of money.

It seems there are some other ways to get there more quickly.

One of them is tax credits, which if you think about it, is a very

efficient way to deliver a stimulus because then you don’t have

writers and readers and regulators and regulations.

But I wonder really what we are talking about here is mostly

getting to the place where the incumbent technology is recognized

for all the filth that it is. And if you do that, then suddenly everything else becomes more attractive, and then you have this incredible rush of creativity and innovation and jobs being created as we

go out to take on that incumbent technology, which, by the way,

is fueled by some people who don’t like us very much.

And so I just wondered whether anybody sees it that way or if

you want to make a spirited defense of a grant kind of system for

applied technologies. I remember opposing in this committee, I

didn’t want to because I like her very much, but Ms. Giffords had

a bill involving the installation of solar panels, training people to

install solar panels, and the, I opposed that, and I lost on a vote

about 20 to three or something.

But it is the application of this principle. Do you really want to

do applied work through grants, or do you want to use a more efficient way of getting the market to respond?

Mr. Parish, do you want to respond to that?

Mr. PARISH. Yes. And typically what we see, and I agree with in

that we need to identify what the real value of externalities are,

because I think that would indeed help these alternative strategies

become more viable. If we could monetize those externalities that

would make it even more viable.

However, what we see in the typical development cycle or R&D

cycle for new technologies is that the government funds the front

end R&D activity to get the basic science, to develop the technology, and that funding starts dropping off until it hits a valley

of death basically. So the industry is sitting there with a technology they don’t have the funds to bring that technology to market, and so that is one of the things that Hybrid Truck Users

59

Forum does is tries to aggregate the pull, the demand for that particular technology to get it out of the OEM and get it on the road.

Now, we couldn’t have done that without the support of the U.S.

Army National Automotive Center, which provided us funding to

not only run the working groups but also to provide some up-front

buy-down funding. And what we have also learned, so we feel that

the government participation in trying to bridge that chasm is very

important because without that government funding to help bridge

that chasm, the technology could very well just disappear and not

be incorporated at all.

Mr. INGLIS. And we are here not talking about, it is not a question of basic science here. Right? If we were talking the batteries

and better battery efficiencies and things like that, that would be

more basic science. As it is what we are talking about is the application of that to particular uses, right, in issues like warranties

which Mr. Penney, I think, mentioned. As I understand it, in the

case of the Volt, that is a real issue is the pricing of the Volt will

be affected by the warranty that they have got to issue.

And so working that out, I mean, just really became more of the

nature of economics and risk kind of allocation rather than science.

The science of better batteries might really change a lot of what

we are talking about. Right?

Mr. PARISH. Right. There is a considerable amount of money

being spent by the Department of Energy through the Department

of Energy on battery development, but it is particularly focused on

light-duty batteries. We feel that demonstration programs are a

very important aspect of this activity, and the government has

been involved in light-duty fuel cell demonstration programs in

particular, and we feel like this is also necessary for the mediumand heavy-duty sector as well.

So it is really a three-pronged approach that we would like to

propose is research and development, which talks about the

science, what is really necessary to bring these advanced components into being. Number two is demonstration programs so we can

actually get the vehicles on the road and get people interested in

seeing how they operate and seeing how they actually operate in

service, and then number three, incentives to make the purchase.

And what we found from the 2005 Energy Bill is that tax incentives do work for some segments, but not all segments. What we

have seen is that for those who cannot take advantage of the tax

incentives, they were able to be taken by the seller of the vehicle,

however, that savings was not passed along to the buyer of the vehicle. So it didn’t fulfill the role it was needed to at that point in

time.

So we would like to see something that would be more of a rebate or something along the lines that would make sure that the

end-buyer, the end-user did, in fact, see the reduction in the cost.

Mr. INGLIS. Thank you, Mr. Chairman.

Chairman LAMPSON. Ms. Biggert, you are recognized for five

minutes.

ROLE FOR THE DOE NATIONAL LABORATORIES

Ms. BIGGERT. Thank you, Mr. Chairman. I am concerned that we

do need, that there is still basic research that needs to be done,

60

and we haven’t completed that, and that is, I am concerned with

a question that I asked Mr. Penney before. And still is what is preventing the DOE and the Department of Defense from collaborating, and I think that the public and the private sector would

benefit from a collaborative R&D effort.

But my next question then is, is there a role for universities and

national labs to play in the competitive grant program created by

the Sensenbrenner bill, maybe as research partners, and as I look

at the bill, it talks about the five grants, and then it talks about

partners, which include other entities including manufacturers and

electric utility companies. But I think that there certainly is a role

for the labs and for the universities, which really the grant program would then pull the technology out of the labs and get the

technologies into the marketplace if we were to look at that.

I would like, if anybody would like to respond to that.

Mr. PENNEY. Certainly. As Mr. Inglis pointed out, you know, we

need to work together, but at the same time I don’t want to waste

my energy writing proposals for Eaton to send its proposal to get

a thing, and then someone else comes to me, and I want our staff

and our capability to be available to everybody, and I don’t want

to waste the energy and the money to have to use our staff writing

proposals through competitive grants. Personally. For the lab point

of view. We like to make ourselves available to all companies, and

it is an open source, open knowledge, education, and work through

a competitive process, through non-disclosures, et cetera.

Ms. BIGGERT. I don’t think I was thinking of the lab as actually

writing the grants or anything. It would be still the—but to be

maybe a research partner that they would work with.

Mr. PENNEY. Right, but there has to be a flow of money, and part

of the disincentive for Eaton, most of these grants or most of the

programs are cost-shared, 50 percent cost-shared. We can’t cost

share. We can’t use government money to, you know, cost share

government money funding. So as a result it puts a burden, an

extra burden on an Eaton or an International or a truck company

to work with us or select us because they have to come up with our

cost share. So that disincentive needs to be taken away.

Ms. BIGGERT. Mr. Dalum.

Mr. DALUM. Yes. In my opinion the universities and national labs

can play a role in this. I am talking about testing, modeling, other

types of activities that could help promote and improve the technology.

Ms. BIGGERT. I know that Argonne Lab does have the Freedom

Car that they do the testing for a lot.

Mr. DALUM. Right. And there are other universities I am aware

of in Wisconsin that are working the hydraulics and other technologies that could be applied perhaps with research into this application.

Ms. BIGGERT. Would anybody like to comment on the coordination between the DOE and DOD?

Mr. Parish.

Mr. PARISH. Yes. I think that has been attempted in 21st century

truck and I think as I had stated previously, the vision of that particular activity was very good, and I think it was a good forum by

which there could have been a greater amount of interaction.

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However, in actual practice it didn’t turn out quite that way, but

I think that given another try at it, you know, there is a possibility

that we could make that happen. I think perhaps with more visionary leadership and stronger leadership for the 21 CT that would,

in fact, happen.

Plus, if we had some real funding that the—a consortium could

work with to start identifying what real projects were viable, do

some competitive grants for different aspects of the program, I

think that would be very worthwhile. You could have different

agencies looking at different aspects of the whole problem.

Ms. BIGGERT. Thank you. I yield back.

Chairman LAMPSON. I want to thank everyone for taking the

time to appear before us today, this committee.

Under the rules of the Committee, the record will be held open

for two weeks for Members to submit additional statements and

any additional questions that they might have for the witnesses.

This hearing is now adjourned. Thank you.

[Whereupon, at 11:37 a.m., the Subcommittee was adjourned.]

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