1. NHA 12302 Kerran Street Poway, California 92064 www.isecorp.com pscott@isecorp.compscott@isecorp.com or 858-413-1742 Hybrid Electric Hydrogen Fueled Buses In Transit Service David M. Mazaika, Paul B. Scott March 20, 2007

2. NHA 20 March 2007 Page 2 Transit Buses are ideal for hydrogen implementation Due to capability to carry 30-60 kg hydrogen, ranges to over 500km are attainable Transit schedules maximize the use of the vehicle, to 16 hours/day, hence buses have optimal utilization Large numbers of passengers quickly become familiar with the quiet, clean operation of these electric vehicles, become enthusiastic supporters of hydrogen vehicle innovations Although vehicles are expensive, the cost is amortized favorably over a large base of hours used, passengers carried. Arguably, the most “bang for the buck” in hydrogen fueled transport! Transit bus operation is predominately in city centers, where quiet and clean operation is most needed!

3. ISE Provides Hybrid Electric Buses Gasoline Hybrid BusDiesel Hybrid Bus First ARB-certified bus hybrid drive system; now in high rate production (100 in 2005) Highest fuel economy of any commercially- available heavy-duty vehicle drive system Hydrogen Hybrid BusFuel Cell Bus Lower cost near-zero emission alternative to fuel cell buses; started revenue service in December 2004 – over 50,000 mi in service First fuel cell bus used in revenue service in California; nearly 50,000 miles

4. NHA 20 March 2007 Page 4 High Efficiency, Zero Emission Fuel Cell Bus Joint Venture established with Thor Industries to develop a series of fuel cell buses Equipped with UTC Fuel Cells 60kW PEM fuel cell Fuel Cell Subsystem Operates at Over 50% Net Efficiency Battery Hybrid Drive System Improves Efficiency ~30% Achieves 10-16 km/kg H2 (16 km/kg Average in Palm Springs Service) First Fuel Cell Bus in Revenue Service at Sunline Transit, AC Transit

5. NHA 20 March 2007 Page 5 California Incentives 2000 - Zero Emission Bus (ZEB) program from CARB, required FCB demonstrations at all diesel fleets of over 200 in size, resulting in fleets of 3 FCBs at VTA (San Jose) and ACT In October 2006 CARB Re-affirmed ZEB program: –Advanced demo - 12 buses required in Bay area in 2009, –In 2011, 2012 15% of purchases to be FCBs (diesel and alternative path) Governor is accelerating programs for reduction in transport carbon use, 10% reduction in next 13 yrs

6. NHA 20 March 2007 Page 6 Hydrogen Fueled Transit Buses SourceOperatorm/kg H2 Thor/ISE/UTCSunLine, AC Transit – Oakland/Berkeley -- Revenue Service 7-10 m/kg (30’ bus) Daimler/Ballard (36 buses)CUTE Program - 12 Cities, over one million km 3.5 km/kg (Madrid) Gillig/Ballard (3 buses)VTC (Santa Clara – San Jose)In operation Spring ’05- MAN – Bavarian FCB, New MAN (hybrid) FCB, HICE buses Nurnberg, Erlangen, Furth, 1996-2001; Munich Airport: May 2004-, Berlin 2006 HICE, 12 liter engine; FCHB 68kW FC + NiMH battery storage, 9km/kg ISE/FordHHICE - New Flyer chassis, Prototype serving SunLine Transit 4 m/kg AC Transit/ISE/Van Hool/UTC (4 buses) Van Hool chassis, AC Transit and SunLine Transit 5-8 m/kg, 300 m Range Toyota – Hino (>8 buses?)Vehicles served Aachi Exposition Reported 300 km range, 2x90 kw FC, Ni-MHi batteries

7. NHA 20 March 2007 Page 7 Worldwide – H 2 Bus programs Berlin – four HICE buses introduced for 2006 World Cup, more coming China – Two prototype buses, intent to have FC buses serving 2008 Olympics Canada – BC Transit solicitation for HFC buses to serve 2010 Winter Olympics (20 buses) London – solicitation for 10 H-buses to serve London route starting in 2008, hundreds by 2012 Olympics? + … USA…

8. NHA 20 March 2007 Page 8 USDOT FTA NFCBP Starting 5 years ago, CalStart, other consortia started to lobby for a national FCB program, In 2005 SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) was signed  NFCBP (National Fuel Cell Bus Program) ($49M federal, 50% cost share) NFCBP goals include facilitating the development of commercially viable FCB technologies, improving efficiency and reducing petroleum consumption 2 years since passing the bill, announced programs directly involve over a dozen firms spread over USA,Canada, no funds have been negotiated yet.

9. NHA 20 March 2007 Page 9 ISE Fuel Cell Bus Programs 2007 4 Hybrid buses operate in California, fifth in Connecticut Expect to intensify operations, “accelerated testing” program awaits funding New designs under discussion for SunLine Transit, VTA, WMATA, Transport for London, BC Transit – all hybrid electric but using different fuel cells, drive systems, chassis designs. Continued interest in the NZEV – HHICE bus

10. NHA 20 March 2007 Page 10 HHICE -- Bridging to a Fuel Cell Future Hydrogen Hybrid Bus Hybrid Fuel Cell Bus Gasoline Hybrid Bus

11. NHA 20 March 2007 Page 11 HYDROGEN HYBRID ICE BUS CONFIGURATION Ford V10 H2 Engine Control System Energy Storage Accessories Inverter Generator Drive Motor

12. NHA 20 March 2007 Page 12 Energy Flow FUEL ACCESSORIES SIEMENS ELFA SYSTEM MOTOR 1 M1 M2 GENERATOR AUXILIARY MOTOR 2 GEN DUO-Inverter 1 DUO-Inverter 2 420 to 720VDC Nominal BRAKING RESISTORS 120kW 230VAC Air Conditioning AC MotorPower SteeringAir Compressor AIR PS M ENGINE CGB BATTERIES or ULTRACAPS

13. NHA 20 March 2007 Page 13 HHICE Bus - Winnipeg Cold Weather Testing

14. NHA 20 March 2007 Page 14 Refueling at Red River College (Electrolytic Hydrogen)

15. NHA 20 March 2007 Page 15 HHICE Bus Experience Winter and summer testing (-27 to +45 o C), given dry fuel temperature is not a problem! The bus now has over 50,000 miles – mostly in revenue service. Range is 210-280 miles – needs to be better! Average fuel consumption 4-5 mi/kg Transit maintenance staff love it – much more accessible than a fuel cell bus! Engine component reliability has been an issue, notable improvement over the year Durability issue remains a major concern, Fuel supply also a major issue!

16. NHA 20 March 2007 Page 16 A Glimpse – Tomorrow’s HICE NOx Emissions vs. Standards

17. NHA 20 March 2007 Page 17 Energy Storage System Electronics Cooling Fuel Cell Power Plant Drive System DC/DC & Inverter System A/C Unit Fuel Cell Cooling Hydrogen Storage Fuel Cell Hybrid System Layout

18. NHA 20 March 2007 Page 18 Fuel Cell Hybrid System Architecture

19. NHA 20 March 2007 Page 19 The 1 st Fuel Cell Hybrid Bus delivered to AC Transit in Oct, 2005 The 2 nd Fuel Cell Hybrid Bus delivered to SunLine Transit early Nov and unveiled at the 2005 Fuel Cell Seminar The 3 rd & 4 th Fuel Cell Hybrid Bus delivered to AC Transit in late Dec, 2005 Buses involved in multiple public demonstrations Daily service with AC Transit, SunLine transit Fuel cell durability still a concern Batteries (Zebra) cause multiple service outages, limit bus availability Fuel Cell Hybrid Bus Status

20. NHA 20 March 2007 Page 20 AC Transit - 9 months experience with new FCHB Official introduction ceremony in early March, 2006 One bus is used primarily for shows (such as for the visit of the President – see right) with occasional returns to revenue service 50,000 miles revenue service in aggregate (3 buses), Software issues mostly resolved, serious battery issue, Bus operation was limited by limited FC warranty hours, accelerated life-test beginning as part of NFCB program

21. NHA 20 March 2007 Page 21 SunLine FCB Experience – one year Used the FC bus double shifts the first two months, now alternating shifts with HHICE bus on Route 50 30,000 miles hot weather operation awaited resolution of A/C problem, motor failures – now resolved with additional insulation

22. NHA 20 March 2007 Page 22 Announced ISE Involvement in USDOT National Fuel Cell Bus Programs AC Transit/SunLine Accelerated Life-test, bus improvements SunLine Transit, Single New Flyer Bus with UTC FC Massachusetts Port Authority/Logan Airport – with Nuvera FC Washington Metro Transit – New Flyer Bus with Ballard FC

23. NHA 20 March 2007 Page 23 A Hydrogen Pathway to Sustainable Mobility

24. NHA 20 March 2007 Page 24 HHICE/FCHB + Wind Hydrogen = Carbon Free Transport!

25. NHA 20 March 2007 Page 25 In Summary: Hydrogen hybrid buses, fuel cell and HHICE, are in daily revenue service – total of over 120,000 mi logged in USA, (+ some 1 Million mi for CUTE) New programs planned in Europe, Canada, USA, Future single bus programs with new FCs, buses in 2007-8, + extended California ARB Advanced Demonstration Program