FinancingEverybody Wins

Sharon K. BanksSharon@lrapa.org or call 1-877-285-7272 ext 215

•Studies show that long-haul trucks idle an average of 8 hours per day, over 300 days per year.

•Each truck consumes 0.8 –1.2 gallons of fuel during each hour of idling, wasting 1900-2800 gallons of fuel per year.

The Problem

Where Do Trucks Idle?

Anywhere they can find a place to park.

Everybody Wins is a program to put Auxiliary Power Systemson tractor-trailer rigs on the I-5 Corridor.

Auxiliary Power Systems provide on-board heat, air conditioning and 110 electrical power to trucks while the

main engine is shut off.

Most APSs keep the main engine warm and the truck battery charged.

Over 1 trillion gallons of diesel is wasted each year in the US idling diesel engines.

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APU IDLING

0-0.2 gallons per hr 0.8-1.5 gallons per hr

LRAPA is here

Goals:

•Improve air quality

•Increase jobs in our community

•Save energy

•Start a revolution in the truckingindustry that will be taken over byprivate enterprise

BARRIERS

•Very few mechanics are certified to install thisequipment.

•Very few truck repair and maintenance shops sellthis technology.

•All the truck drivers want them – mostly for comfortand safety reasons, but most can’t afford the initialoutlay of $5,000-8,000.

STEP 1

BORROWING THE MONEY

LRAPA applied for a low interest loan through Oregon’s Office of Energy to buy 100 units.

The loan will be paid back by monthly payments from owner-operators and fleets.

STEP 2

PAYING FOR ADMINISTRATION

Oregon has a program where local governments andnon-profit organizations can “share” a business energytax-credit with a “for-profit” partner.

The “for-profit” partner pays the agency 25.5% of the project cost in cash in exchange for a 35% Oregon tax credit.

This 25.5% credit amounts to over $300,000 to fund stafftime and marketing efforts.

STEP 3

SELECTING EQUIPMENT

LRAPA worked with a team of academic and truckingindustry advisors to develop a request for proposal.

After reviewing proposals, we selected 5 companies thatmet our criteria and invited them to set up facilitieson the corridor in our community.

So far 11 installation shops are participating.

STEP 4

THE FREE AND CHEAP MARKETING STRATEGY

•Oregon Trucking Association weekly fax (FREE).•Contacting local fleets—local fleets have priority (FREE).•Printed material on placemats and beverage napkins for truck stop cafes and bars (CHEAP).•Payroll stuffers for fleets to reach owner-operators (CHEAP).•Ask truck drivers to tell their friends (FREE).

STEP 5

MANAGING THE LOAN PROGRAM

•Truck drivers can apply online or call LRAPA for an application packet.•Local bank takes applications over the phone, screens credit, and prepares the paperwork for the loan.•LRAPA contacts the driver and offers either LRAPA financing (I-5 corridor) or bank financing.•Driver selects equipment and installer.•Driver signs loan agreement.•LRAPA orders equipment “drop shipped” to installer for negotiated price.•Payments are electronically drafted from the drivers checking account on a monthly basis to pay back the Office of Energy loan.

STEP 6

SAYING THANKS

The community of Eugene-Springfield is thanking the truck drivers for caring about the environment by giving them a care package to use while the installation occurs:

•Free hotel stay•Free rental car•Movie passes•Free pizza, coffee, breakfast coupons•Free bowling lines•Hats, cups, pens etc.•A Certificate of Appreciation

EVERYBODY WINS

Benefits to the Environment:•Reduces air pollution on the I-5 corridor.•Saves 190,000 gallons of diesel per year per 100 installations.•Improves public health.

Benefits to the Local Economy:•Promotes business for the trucking repair shops.•Promotes business for a local bank.•Establishes a new green business opportunity in the Eugene-Springfield area.

EVERYBODY WINS

Benefits to the Trucking Industry

•Saves $25,000+ during the life of the product.

•Drivers rest better.

•Improves the health of the drivers.

•Drivers are more comfortable, reducing driver turnover.

•Improves highway safety: drivers have access to emergency power when stranded.

•Increases the life the the truck engine by 10%.

Program Cost: FREE

Truck driver saves more than the cost ofthe monthly payment in fuel. Payback is less than24 months.

The State of Oregon collects more revenue eachyear because the bottom-line of the trucking industry has been improved.

NEEDS

•$1000-2000 per vehicle for DOCs. DOC would reduce fine PM by 30%.

• Money for developing training program for community college diesel technology programs.