1. Today’s Transit for Tomorrow’s World SunLine’s Hydrogen Fuel Cell Program A Necessary Partnership in the Deployment of Zero Emission Technology Lauren Skiver CEO/General Manager

2. SunLine Transit Agency –SunLine is the consolidated transportation service agency for the Coachella Valley, with a 1,120 square mile service area utilizing 71 fixed route buses (5 Hydrogen Fuel Cell), and 33 paratransit vehicles for a total of 104 revenue vehicles SunLine Services Group –Regulates taxi service 180 taxicabs in the Coachella Valley 276 taxicab drivers 3 franchises SunFuels −SunFuels (Thousand Palms) provides CNG & Hydrogen Fleet and Public access 24/7 −SunFuels (Indio) provides CNG Fleet and Public access 24/7 Three Distinct Business Units

3. SunLine Facts SunLine Operations Operate fourteen (14) local SunBus fixed routes and Riverside Commuter Link 220 Provides SunDial ADA Paratransit service and Taxi Voucher Program for older adults Operated 4.2 million revenue miles for 4.9 million passenger rides FY 14/15 SunLine Employees 227 union employees 88 non-union employees 315 Total

4. LEADERS IN ALTERNATIVE FUEL TECHNOLOGY First Public Transit Agency in the Nation to operate a 100% CNG fleet 1994 2015 2015 40 CNG Buses 66 CNG 5 Hydrogen 33 Para-Transit CNG buses SunFuels Fueling Station

5. Leaders In Alternative Fuel Technology Early and Current Hydrogen Projects Leaders in Hydrogen Electric Fuel Cell Bus Technology for over a decade 10 th, 11 th and 12 th Generation - Nine New Hydrogen Vehicles On Property in the next 2- 3 Years

6. Hydrogen Program Data Bus Configuration YearHoursMilesHydrogen Fuel Kg FC2 – New Flyer Ballard Fuel Cell, ISE Drive Sys. 20106,66490,30213,009 Kg FC3 40’ El Dorado Axess, BAE Drive Sys, Ballard Fuel Cell 20126,818103,70015,152 Kg FC4 40’ El Dorado Axess, BAE Drive Sys, Ballard Fuel Cell 20143,05140,6156,085 Kg FC5 40’ El Dorado Axess, BAE Drive Sys, Ballard Fuel Cell 20142,29922,0653,347 Kg FC6 40’ El Dorado Axess, BAE Drive Sys, Ballard Fuel Cell 20157869,7601,466 Kg

7. Maintenance Costs Comparison

8. Hydrogen Costs Total Hydrogen dispensed and cost per Kilogram by month

9. Alternative Fuel Challenges Procurement –Fitting Hydrogen procurements into Diesel vehicle procurement documents –Ensuring the technology can meet the required life cycle regulations Partnerships –Risk must be acknowledged by all partners –Transit agencies have extreme pressures to deliver reliable service –OEM’s take on considerable financial burdens and risk Communication –Managing expectations –Strong leadership comprising of multiple levels of position at the transit agency and OEM/manufacturer Commitment –Building strong commitments between OEM’s, funding agencies and transit operators –Creating information and support throughout the transit agency and within the community –Understanding the risk and working to minimize it through education of the contract and responsibilities of all parties

10. Risk Versus Reward What are the benefits? ─Reduction in environmental impacts ─Less dependence on fossil fuels ─Increased vehicle and infrastructure funding What are the differences in managing these fleets? ─Complex configuration and integration compared to diesel and CNG ─Training needs for technicians and support personnel ─Replacement component costs and availability

11. Risk Versus Reward Continued What questions should you ask your Agency, Board and Community? ─How committed to an alternative fuel program are your stakeholders? ─Can we manage rider and service expectations while exploring alternative fuel vehicles? ─Does the Transit Agency team support the efforts to make an environmentally based vehicle decision? What did SunLine experience in these areas? ─Strong Board of Directors support ─Strategic public awareness campaigns ─Operating mission that reinforces our commitment with internal employees, customers and community leaders

12. Evolution of Technology Risks CNG Risk –Perception of No Risk Transit Agency’s have struggled with an exclusive manufacturer and fleet defects There are no emerging engine providers entering the market to provide competition and component choice Hydrogen Risk –Perception of Unacceptable Risk An emerging market with similar technical challenges as CNG –Current increased interest by OEM’s to produce components that may lead to more configuration choice with Hydrogen than with CNG platforms

13. Successful Commercialization Elements from an Operator Transit Prospective: –Builds on operator successes representing the demand for the technology –Identifies risks from an operator position –Represents the value proposition from a Transit Agency Perspective –Provides technical assistance to the industry –Establishes visibility of initiatives Transit Driven Commercialization

14. Who Takes the Project Lead? Manufacturer driven solution may create: –Limited players –Indirect communication of risks –Supply driven proposals –Limited commitment by transit operators Non-Profit solution may create: –Indirect communication of risks –Theoretical vs. practical representations of performance –Leveraged cost discussions because of administrative interests –Limited commitment by transit operators

15. SunLine’s Vision Statement SunLine is committed to working with Transit Operators to: –Enhance the demand for Hydrogen/Zero Emission fuel technologies –Eliminate or mitigate risks Buy America Reliability of Vehicles and Infrastructure Availability of Hydrogen/price analysis Lack of competition DBE Program requirements Life Cycle Costs and useful life calculations FTA Spare Ratio calculations –Increase competition Support manufacturer efforts to create competition

16. SunLine’s Center of Excellence Establish a Center of Excellence to house investments in learning ─For every investment in technology, there is investment in training and learning Funding partners have already made substantial investments in the technology ─Center of Excellence would be a site to preserve and enhance those learning investments Acquisition and in-service management Leverages prior investments and prevents duplication in future technology projects Is not limited to transit technology and can transcend other “spill over” applications

17. KEY TAKEAWAYS Commitment to zero emission technology must be in place at project initiation Reliability, competition, value proposition, and successful partnerships must be communicated Risk must be accepted by all partners Zero emission technology works Don’t wait until the funding opportunities sunset to create a renewable energy mission/focus

18. Engaging the Community Thank You