NYCT OPERATING EXPERIENCE WITH HYBRID TRANSIT BUSES

1. VE_2006 Aug 16, 2006 SBC São Paulo NYCT OPERATING EXPERIENCE WITH HYBRID TRANSIT BUSES Gary LaBouff Director, Research & Development May, 2006

2. Overview of NYCT Bus Operations

3. NYCT Bus Operations (2005) • Annual Bus Customers 740,586,160 • Average Weekday Ridership 2,361,299 • Total Buses in Fleet 4,512 • # of Bus Routes 243 • # of Bus Stops 12,693 • # Of Total Employees 14,061 • Annual Mileage 119,495,228 • Gallons of Fuel Consumed • Diesel 41,116,861 • CNG 7,156,336

4. NYCT Bus Fleet

5. NYCT Goals 1. Reduce Bus Fleet Emissions - Achieve levels below current U.S. mandates 2. Improve Service - Improve equipment reliability - Achieve quieter operation 3. Reduce the Cost of Operations - Improve fuel economy - Reduce maintenance costs - Avoid infrastructure costs

6. The Clean Fuel Solution - Hybrid Electric • Hybrid Electric buses combine a dieselengine and electric drive components • Improved performance • Significant emissions reduction • Increased fuel economy • Smooth and quiet operation • Improved emission aftertreatment performance • Avoids the infrastructure costs of CNG - no special fuel handling is required

7. BAE/Orion VII Hybrid System Lead-Acid Batteries Lead Acid Battery Packs Traction Motor Power Electronics Generator Electric Traction Motor Diesel Engine Generator Power Electronics (PCS) Diesel Engine

8. NYCT Hybrid Bus Programs

9. NYCT Hybrid Bus Programs - Overview • Prototype in 1996 (Orion/GE) • Pilot fleet of 10 Orion VI/BAE hybrid buses began revenue service in 1998 • 125 Production Orion VII/BAE Gen. I hybrid buses ordered - pilot bus in 2003, production deliveries in 2004 • 200 Production Orion VII/BAE Gen. II hybrid buses ordered - pilot bus in 2004, production deliveries in 2005 • 500 Additional Orion VII/BAE Gen. II+ ordered, (216 NYCT, 284 MTA BUS) - Delivery by 6/07.

10. Revenue Service Experience - Orion VI • Hybrid buses in service since Sept. 1998 • Met standard performance specs • Approx. 700,000 revenue miles • Drivers and customers like the buses • Brake life approximately doubled • Very positive - for a brand new technology, have exceeded expectations

11. Orion VII/BAE Hybrid Buses - Generation I • First of 125 into service in February, 2004 • As of 1 July 2006: • 125 Buses in service • Approx. 6.5million revenue service miles to date • Two depots: Bronx & Queens • Used interchangeably with standard buses • Fuel economy and emissions better than Orion VI hybrid buses

12. Orion VII/BAE Hybrid Buses - Generation IDesign Improvements over Orion VI • Active Control of Generator • Variable engine speed • Improved Traction Motor • Planetary gear reduction • Redesigned bearing system • Redesigned Packaging • Particulate Filter with Active Control • Improved Diagnostic System • Improved Re-gen Control for Smoother Braking

13. Orion VII/BAE Hybrid Buses - Generation II • First of 200 into service in December, 2004 • As of 1 July 2006: • 200 Buses in service • Over 7 million revenue service miles • Two depots: Brooklyn and Manhattan • Smoother and quieter than Generation I

14. Orion VII/BAE Hybrid Buses - Generation IIDesign Improvements over Orion VII Generation I • New Generator - Flywheel Mounted • New Design Coolant/Lube Pumps • Oil Cooled Propulsion Control System • Improved Accessibility • Software Upgrade • Updated engine - EGR with common rail fuel system

15. Orion VII Hybrid Bus Revenue Miles

16. NYCT Fleets Composite Fuel Economy

17. Emissions Comparison

18. EPA Regulated Emission Levels for Heavy Duty On-Highway Engines - PM & NOx 1988 1990 1991 2004 1994 1998 2007-2010

19. Hybrid Bus Reliability (MDBF) 6 Month Moving Average 6 Month Rolling Average 6 Month Rolling Average 01 01

20. Orion VI Lead Acid Battery Life • For the 36 months of testing ending in February of 2004: • 17,000,000 Battery-miles, 5% replaced • Replaced batteries did not appear to be ‘end-of- life’ failures • Two buses in service for 40+months with no failures • Life goal of 3 years appears to be potentially achievable but not realized yet • Changes to software in Orion VII should reduce battery replacements

21. Hybrid Electric Costs

22. Life Cycle Costs - HEV vs Standard • Current differential in acquisition costs make justification of HEV’s, based on costs alone, difficult at today’s fuel prices • Current hybrid differential is $125-200K per bus • Series HEV’s in NYCT high density duty cycle can achieve over 30% improvement in fuel economy over standard diesel/transmission systems • This can result in a savings of approx. 50,000 gallons of fuel over a 12 year life of the bus. • If today’s fuel prices continue to increase, the savings can negate the initial cost differential.

23. Fuel Costs - Series HEV vs Std. Propulsion

24. Life Cycle Costs - HEV vs Standard • Other factors contribute to HEV cost savings • Brake life • Diesel Particulate Filter maintenance • HEV system can control regeneration process and reduce filter problems • Transmission overhaul • Other non-cost factors favor hybrids • Lower noise signature • More flexibility in vehicle energy management • Emissions

25. Lessons Learned from Hybrid Buses

26. Lessons Learned - Operational • Bus operators and passengers like hybrids • Quiet, smooth operation • excellent acceleration/smooth braking • “feels” like a standard bus • little or no operator training required • Able to be used on all NYCT routes • Bus does not roll back on hills

27. Lessons Learned - Maintenance • More advanced troubleshooting procedures and tools required • More components and subsystems/interfaces • More wiring and connectors • Long term, reliable, and cost effective energy storage solution still not clear • Lead acid batteries have limited life and can be reliability drivers due to the number required • NiMH still expensive and life unproven • Ultra capacitors, Lithium Ion batteries still in development.

28. NYCT Hybrid Bus - Future Plans • Evaluate alternative energy storage technologies • Evaluate alternative hybrid system technologies • Continue to develop integrated diagnostic/prognostic systems • Pursue goal of 10,000 hour MDBF for hybrid buses • Move toward all electric accessories

29. Hybrid Buses - Future Challenges • Component Optimization - HEV allows for the use of other electrically driven system components. • Electric components have inherent advantages: • Remote mounting - better packaging • More efficient • High reliability index • Reduced noise signature

30. Hybrid Bus - Future Challenges • Revise current EPA heavy duty certification protocol to allow for hybrid system certification to take advantage of the hybrid benefits. • Move to all electric accessories and integration of all bus subsystems for performance optimization and troubleshooting. • On-board diagnostics and prognostics, with automatic fault prediction/detection and wireless communication to maintenance facility

31. Hybrid Buses - Future Challenges • Opportunities for Electrically Driven Accessories: • Short term • Compressors, air and HVAC • Steering • Cooling system • Long Term • Wheel motors • ZPE operation • Fuel cell integration

32. General Bus - Future Challenges • Accommodate new emissions control technologies while keeping reliability, maintenance costs, and operating costs at a tolerable level. • Keeping maintenance infrastructure and staff current with rapidly changing technologies.

33. In 1996, all buses were 40-foot Standard Diesel except for 31 CNG’s. By the end of 2006, only 51% of the fleet will be 40-foot Standard Diesel. Bus Fleet Diversification

34. Additional Information • Speaker Contact: Gary LaBouff, Director - Research & Development MTA New York City Transit (718) 566-3535; galabou@nyct.com • Hybrid/CNG/Diesel Emissions Report www.navc.org/emissionsreport.html • NREL Reports: www.nrel.gov Technical Report: NREL/TP-540-40125, June 2006