# Xl hybndS "

Aug u st 1 8, 20 15 Env ir on m enta l Pro tect ion Age ncy A ir and R adiation Docket and Information Cente r (6 1 02T) 1200 P e nnsylvania A ve n ue NW Washi ngton, D C 20460 XL Hy brids , Inc. 145 Newton Street Boston, MA 02135

R

E: EP A/N HTSA H ea vy-Duty Greenhou se Ga s Em i ss io n s and Fu e l Effic ie ncy Pha se 2 Draft Rul es (EPA Do c k et ID No. EPA

- HQ -OAR-2014-0827) Dear S ir / Madame, At XL H yb rid s we are very appreciative of th e effor t s of the fe d era l government team in deve lop in g the Pha se 2 draft ru les and agree w ith th e basic prin cip les and struc tures that have been proposed , and as c urre nt l y proposed, we s upport the pr efe rred alte rn ative. By way of introduction , XL H ybr id s i s curre ntl y a lead in g fleet e lectrificat ion co mpany in the U .S

. w ith , as of May 20 15, ove r 12 Mi lli o n fl ee t c u s tomer mile s p e r yea r dri v in g our products across Nort h A m e rica. Our core h yb rid e l ectr ic upfit products for C lass 2 to 6 ve hicl es provide ro ug hl y 20% fuel and proportio na l C02 sav in gs. Our s uc c es s to-dat e i s because of two imp orta nt factors: I. XL H yb rid s does n ot s ig nificant l y alt e r the major OEM vehic le and powe rtrain , and so ma jor fl ee t s can bu y and s ervice ma j or O E M ve hic les w ith o ut a ny c ha nge s 2

. XL H yb rid s pri ce point i s under $ 10 , 000 for a C lass 2B hybrid e lec tric full size van, an d proportionally high e r fo r large r ve hi c l es wh ic h ha s attractive payba c k for fleets that ha ve co n side rab l e lif e tim e veh icl e mil eage utili za ti on. I n th i s context, XL H yb rid s ha s both expertise and a s tak e in the se rule s as they appl y to hea vyduty trucks and va n s and vocatio nal ve hicl es , and ha ve the following add iti o n a l co mm e nt s and recommendations: I
. We recomm e nd impro ve ments to the h ybrid e le ct r ic battery cost m ode ls. Th e learn in g curve cost m ode ls in the RI A Tab l e 2- 100 for mild and s trong hyb rid s do not acco unt for the hi ghl y s pecia li ze d manufa ct urin g cos t s and sca ling that i s uniqu e to the lithium battery mark et. W e s uggest that model s that tak e into acco unt indu s try , m ark et s tudy , and national lab m odel in g for cos t and scale s p ec ifi c to th e materials and pr ocesses u se d in the manu facture of li thium batteries i s m ore ap propriate he r e. Likewi se proj ec tion s s hould include calc ulations of tota l MWh purc ha se d by s in g le ve hi c le m anufacturers and we ll as produced by si ng le battery manufacturers as the se w ill both infl uence sca ling

. 2. The projected in cre m e ntal cos t s for HD P ickup and Van s tron g and mild h ybrids are too lo w.The H D Pi ckup and Va n Strong and M ild H ybr id costs projected in R I A Tables 2-179 and 2-183 are based on we ight sea ti ngs from LD that do not adequately account for production vo lum e differences between th e LD and HD secto r. By contrast we fee l th e vocat iona l cost targets are r easo nab le because the weight sca lin g becomes a mo r e s ign ifi ca nt fac tor. 3. We recommend expa nding the trading compliance paths for add i tio na l flexibility to a ll ow major OEMs to take advantage of the fuel and emissions sav i ngs technologies deployed by 3rd party upfitter s. A ft e r a comp lete roadworthy HD veh icl e i s p roduced through a multi-manufa cturer proces s , many vehicles underg o additiona l modifications by 3rd party compan ies that in s t all systems th at further reduc e fue l consumpt ion and em i ssio n s so me of which are m en ti oned i n the RlA Table 2- 49. Ford Motor Company a lone attrib utes the in troduction to the marketplace of more than 50,000 advanced techno logy medium/heavy duty ve hi c le so luti ons through 3rd p arty compa ni es ad din g eq uipm e nt to Ford veh icl es th at wou ld n ' t necessarily fit the draft rul es definition of delegated assemb ly. While the EP A and NHTSA are regulating the primary manufactu r ers, we do not believe the depa r tments are prev e nted from mea s uring and assigning cred i ts to 3rd p arty products that produce mea s ureable robust sav in gs that th en cou ld p a rti cipate in an A BT credit mark e tplac e. ln XL Hybrids curre nt bus in ess model our savi ngs would primaril y b e nefit just end fl eets w hen they could a l so be contributing in Pha se 2 r egulation goals. The b e nefits to the public wou ld be a more market d ri ven proce ss re s ulting in faster introduction of advanced savings technologies, an d the pot e ntial for achieving greate r reductions. We r ecognize that structuring, validat in g, and deploying s uc h a cre di t sys te m wou ld be cha ll e ng in g but we ask that the rul es be modified to specifically a ll ow for suc h a po ss ibilit y so that a program ca n be developed. We are open to discussing our recommendations further at any tim e. Also on Table 2-49 we can offer the follow ing correc tion s . Our business name is XL H yb rid s (not XL) and our p roducts are Strong Hybrid s from Class 2 8 to 6 for del ivery and serv ice vans and trucks, and s huttl e busses. S in cere ly,

Edward Lovelace C hiefTechnology Officer e love lace@

. x I hybrids.com 6 1 7-718-0329 x i O I