1. California Energy Commission Forecast of Medium and Heavy Duty Vehicle Fleet Transportation Energy Demand Forecasts Rosenfeld Hearing Room November 24, 2015 Bob McBride Demand Analysis Office Energy Assessments Division Bob.McBride@energy.ca.gov / 916-654-5009 1

2. California Energy Commission To Cover Today Adoption based on Argonne Truck 5 Model Market penetration insights Fleets from 2013 to 2026 2

3. California Energy Commission Medium & Heavy Trucks & Buses in 2013 3 Class 3: 10,000 to 14000 pounds Class 3-8 Motor homes Class 4-6: 14,001 to 26,000 lb. Class 7: 26,001 to 32,000 pounds Class 8: Over 32,000 pounds Diesel116,63532,498190,93765,209199,462 Hybrid Diesel000095 Electric522982379 Flex Ethanol8,32644135300 Gasoline80,579133,08776,8233,9949,871 Natural Gas18082,35175111,492 Propane1857760133539

4. California Energy Commission Four Demand Cases 4 Demand Cases Input Scenario Assumptions Econ Demo Fuel PricesMDV and HDV Policy Goal Achieved Liquid Fuels NG, Electric DSL/NG Vehicle Price NG Adoption Rate Common Demand Cases High Energy Demand HLLL/LH Phase 1 Truck Fuel Economy Low Energy Demand LHHH/HL Phase 2 Truck Fuel Economy Mid Energy Demand MMMM/MM Phase 1 Truck Fuel Economy High Alternative Fuel DemandHHLH/LH Phase 2 Truck Fuel Economy Phase 1 and 2 refer to EPA/NHTSA Truck Fuel Efficiency and GHG Standards. Phase 2 is in rulemaking.

5. California Energy Commission Forecast of Alternative Fuel Buses 5

6. California Energy Commission Medium/Heavy Truck Stock, 2013 6 dieselelectric flex ethanol gasolinenatural gaspropane Class 3111,992477,05572,0276698 Class 3 to 8 Motorhomes32,4942441133,06887 Class 4 to 6164,5734146957,162544242 Class 756,484003,314149111 Class 842,334207,24865811 Class 8 California Tractor Trailer Day Cab 135,859501,2761,4742 Class 8 Refuse & Recycle8,946505162,9384 Class 8 Interstate Tractor Trailer Sleeper Cab 75,16300000

7. California Energy Commission Observations from Argonne Truck 5 Model Results High annual miles and larger vehicles favor natural gas –Long haul trucks, especially interstate Frequent stops favor certain technologies –Battery electric trucks –Diesel-electric Hybrid –Start-stop technology for conventional fuels Low annual miles and low fuel prices favor conventional fuels, even gasoline over diesel E85 medium duty truck emerges after 2020 for medium duty 7

8. California Energy Commission Argonne Truck Model Alternative to Baseline Technology Adoption Rate 8 For this DAO forecast the “Aggressive” curve was used in all Truck Model runs. Source: National Petroleum Council, 2012. Baseline is gasoline for class 3-6, diesel otherwise.

9. California Energy Commission Class 3: 10,000 to 14,000 pounds loaded 9

10. California Energy Commission Fuel Economy Class 3 (MPGGE) 10 Source: Sierra Research and Energy Commission staff analysis., 2015 HIGH refers to the High Demand Case, and REF to the Mid and Low Demand Cases.

11. California Energy Commission E85 and Gasoline Truck Percentage of Class 3 Fleet 11 HIGH refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

12. California Energy Commission Class 4 to 6 12

13. California Energy Commission Fuel Economy Class 4 to 6 (MPGGE) 13 Source: Sierra Research and Energy Commission staff analysis., 2015 High refers to the High Demand, Mid to Mid Demand, and Low to Low Demand Cases.

14. California Energy Commission Fuel Economy Class 4 to 6 Gasoline & Electric 14 Source: Sierra Research and Energy Commission staff analysis., 2015 HIGH refers to the High Demand Case, REF to the Mid Demand, and LOW to the Low Demand Case.

15. California Energy Commission Diesel-electric Hybrid Percentage of Class 4 to 6 Fleet 15 High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

16. California Energy Commission Forecast of Class 3 to 6 Trucks (1 of 3) 16 High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

17. California Energy Commission Forecast of Class 3 to 6 Trucks (2 of 3) 17 High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

18. California Energy Commission Forecast of Class 3 to 6 Trucks (3 of 3) 18 High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

19. California Energy Commission Trucks Over 26,000 pounds 19

20. California Energy Commission Fuel Economy, Class 8 Interstate Tractor Trailer (MPDGE) 20 Source: Sierra Research and Energy Commission staff analysis., 2015 HIGH refers to the High Demand Case, and REF to the Mid Case, and Low to the Low Demand Case.

21. California Energy Commission 21 Market Adoption given Incremental Price of LNG Interstate Tractor-trailers High AFV refers to the High AFV Demand Case, High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case. In classes 7 and 8, incremental price is the vehicle prices of NG minus diesel trucks.

22. California Energy Commission Market Adoption of LNG Interstate Tractor trailers given Fuel Price 22 High AFV refers to the High AFV Demand Case, High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

23. California Energy Commission Fuel Economy, Class 8 Refuse/Recycling Truck (MPDGE) 23 HIGH refers to the High Demand Case, REF to the Mid Demand Case, and Low to the Low Demand Case.

24. California Energy Commission Natural Gas Refuse Truck Adoption as Percentage 24 High AFV refers to the High AFV Demand Case, High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

25. California Energy Commission Natural Gas and Gasoline Class 7 & 8 Trucks 25 High AFV refers to the High AFV Demand Case, High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

26. California Energy Commission Diesel Class 7 & 8 Trucks 26 High AFV refers to the High AFV Demand Case, High refers to the High Demand Case, Mid to the Mid Demand, and Low to the Low Demand Case.

27. California Energy Commission Questions? Comments? Bob McBride Demand Analysis Office Energy Assessments Division Bob.McBride@energy.ca.gov / 916-654-5009 27