August 13, 2003
Baseline Class 4 Truck Inventory for
the Houston-Galveston Region
Deliverable from
Task 3: Regional Vehicle Estimates and Survey
Emissions Testing of Prototype Diesel/Electric Hybrid Commercial
Pickup/Delivery Vehicles (PUDS) and Assessment of Potential Emission
Reductions in the Houston-Galveston Non-Attainment Area from
Widespread Use in Delivery Fleets
Prepared for
Texas Council on Environmental Technology
Pickle Research Campus
University of Texas M/C R7100
10100 Burnet Road
Austin, TX 78758
Submitted by
Houston Advanced Research Center
4800 Research Forest Drive
The Woodlands, Texas 77381
Prepared by
William G. Barker
David Hitchcock
Dan Matisoff
Baseline Truck Inventory for the Houston/Galveston Region
I.
Introduction
Objective
This report documents the current number and use of Class 4 trucks in the eight-county
Houston-Galveston Non-Attainment Area. This information will be used as part of a
larger effort to estimate the emissions of diesel/electric hybrid commercial
pickup/delivery vehicles (PUDs) and assess the potential emission reductions in the
Houston-Galveston non-attainment area from widespread use of these vehicles in
delivery fleets.
Figure 1
Houston-Galveston Non-Attainment Area
Trucks that are one class smaller
(Class 3) and one class larger
(Class 5) are also investigated
since the diesel/electric hybrid
propulsion technology of
interest here can, in many cases,
also be used in these other
vehicles with accommodations
made for different weight and
performance requirements.
This report is the deliverable of
Task 3 of the Texas Council on
Environmental Technology
project entitled Emissions
Testing of Prototype
Diesel/Electric Hybrid
Commercial Pickup/Delivery Vehicles (PUDS) and Assessment of Potential Emission
Reductions in the Houston-Galveston Non-Attainment Area from Widespread Use in
Delivery Fleets.
Source: Texas Natural Resources Conservation Commission
Project Background
In August 2000, FedEx, the world’s largest express transportation company, and the
Alliance for Environmental Innovation, a project of the non-profit environmental
organization Environmental Defense, entered into a partnership to create the next
generation delivery truck. The project will fundamentally change the energy and
environmental profile of FedEx’s fleet of pick-up and delivery trucks, and will serve as a
model for other companies to upgrade their fleets and continue to push for cleaner, more
fuel-efficient technology. The FedEx-Alliance partnership leverages FedEx’s purchasing
power to signal a demand for new transportation options. The project is being conducted
on an aggressive timeline designed to push technology development, support public
policy, encourage replication, and ultimately, to put cleaner trucks on the road as soon as
possible.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
The project's goal is to develop a FedEx Express pick up and delivery vehicle that
significantly decreases particulate emissions and smog-causing emissions (nitrogen
oxides), increases fuel economy, functions equivalently and, over its lifetime, costs the
same as the standard FedEx Express medium-duty W700 delivery truck (Figure 2) .
Alternative technologies will be needed to meet these goals while minimizing emissions
of particulate matter (such as PM2.5), smog-causing emissions (such as oxides of nitrogen
[NOx]) and greenhouse gases (such as CO2).
Figure 2
Recent research1, 2, 3 shows that
FedEx Standard W700 Step Van
hybrid electric vehicles
(particularly those with directinjection engines) have similar
projected ranges of “well-towheel” energy efficiency as fuel
cells. They also have design
advantages such as regenerative
braking, which make them well
suited for pickup and delivery
trucks. Additionally, unlike
electric or compressed natural gas engines, hybrid electric trucks use a widely available
fuel and do not need dedicated fueling infrastructure. This is critical to FedEx which
does not centrally fuel its fleet. This is also essential to encourage rapid, widespread
adoption of the new truck by other fleets.
In tests of buses used in New York City, hybrid electric vehicles achieved dramatically
better fuel economy than either standard diesel buses (65% improvement) or CNG buses
(as much as 100% improvement). These fuel savings add to the economic incentive for
using environmentally advanced technology.
Hybrid electric technology also significantly reduces other vehicle emissions, including
greenhouse gases, particulates and air toxics.
Data Sources
The data for this project come from the following primary sources:
•
The 1997 National Vehicle Inventory and Use Survey conducted by the Census
Bureau. This is the most recent national truck survey data available at this time
with the 2000 survey becoming available in 2004;
1
General Motors Corporation, et al., Well-to-Wheel Energy Use and Greenhouse Gas Emissions of
Advanced Fuel/Vehicle Systems, North America Analysis, Executive Summary Report, June 2001.
2
Frank Kreith and R. E. West, “Gauging Efficiency, Well to Wheel,” Mechanical Engineering Power, June
2003, www.memagazine.org.
3
Malcolm A. Weiss, John B. Heywood, Andreas Schafer & Vinod K. Natarajan, Comparative Assessment
of Fuel Cell Cars, Laboratory for Energy and the Environment, Massachusetts Institute of Technology,
MIT LFEE And 2003-001 RP, February 2003.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
•
•
•
•
•
Tabulations from the R. L. and the new Polk Inc. Vehicles in Operation (VIO)
database on vehicles and fleets within the eight-county Houston-Galveston nonattainment region;
The Texas Department of Transportation, Vehicle Titles and Registration
Division data on currently registered vehicles;
FedEx fleet information for the Houston-Galveston region provided by FedEx,
Inc.
Information provided by the Houston-Galveston Area Council (HGAC) regarding
the mobile emissions inventory and vehicle miles of travel (VMT) for various
categories of motor vehicles; and
A truck use study in the Los Angeles metropolitan region conducted jointly by the
Federal Highway Administration and the Environmental Protection Agency in
cooperation with the California Air Resources Board.4
R.L. Polk's VIO database is a census of all vehicles currently registered in the U.S. The
data is compiled quarterly and covers all passenger cars and trucks.
4
Battelle, Final Report Heavy-Duty Truck Activity Data, prepared for the Office of Highway Information
Management, Federal Highway Administration, April 30, 1999.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
II.
Vehicle Description and Classification
The FedEx Eaton Hybrid Electric Vehicle (shown in Figure 3) uses the Freightliner
Custom Chassis Model MT45 with a standard step van Utilimaster body. The baseline
Cummins 5.9L diesel engine was replaced with a DaimlerChrysler OM904 4.3L diesel
engine and the Allison automatic transmission was replaced with an Eaton Hybrid Drive
Unit, containing the automatic clutch, electric traction motor, and AutoShift transmission.
Figure 3
Eaton Hybrid Electric Truck
A comparison of the standard, baseline FedEx
delivery step van and the Eaton Hybrid
Electric Truck is shown in Table 1. Note that
both the gross vehicle weight (gvw), the
combined weight of the vehicle and its
payload, is 16,000 pounds.
The new vehicle is powered by a smaller
diesel engine in combination with an electric
motor. As can be seen in Table 2, the
prototype vehicle is able to achieve better fuel
economy, lower emissions, and greater
acceleration all at the same time.
Table 1
Vehicle Description - Baseline vs. Eaton Hybrid
Source: Environmental Defense, FedEx-Alliance Future Vehicle Program Eaton Hybrid Electric Vehicle Description &
Measured Performance March 24, 2003
Model
Body
Chassis
Cargo Area
Engine
Transmission
Rear Axle Ratio
Tires
Front:
Rear:
Wheels
Brakes
Weight:
GVWR (lbs.)
Payload (lbs.)
Test Weight (lbs.)
Baseline Truck
W700 Step Van
Utilimaster
Freightliner MT45
700 cubic feet
5.9L Cummins I6 Diesel
Allison AT542FE
4.10
Goodyear G647 225/70R19.5
Goodyear G159 225/70R19.5
19.5 inch, steel
Hydraulic
Eaton Hybrid Electric Truck
W700 Step Van
Utilimaster
Freightliner MT45
700 cubic feet
4.3L Mercedes OM904 I4 Diesel
Eaton FO-8406A-ASX
3.31
Goodyear G647 225/70R19.5
Goodyear G159 225/70R19.5
19.5 inch, steel
Hydraulic
16,000
5,720
13,280 (includes 3,000 lbs. of
payload)
16,000
5,390
13,610 (includes 3,000 lbs. of
payload)
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
Table 2
Summary of Southwest Research Institute FTP Test Results
Source: Environmental Defense, FedEx-Alliance Future Vehicle Program Eaton Hybrid Electric Vehicle Description &
Measured Performance March 24, 2003
FedEx FVP Program
Targets
FedEx Requirements
Fuel Economy Requirements
Fuel Economy (MPG)
Environmental Requirements
NOx (g/mile)
PM (g/mile)
Functional Requirements
Payload Capacity - Weight (lbs.)
Payload Capacity - Volume (ft.3)
Comparison of Eaton Hybrid
Truck to
the Baseline Truck
50% Increase
45% Increase
90% Reduction
90% Reduction
54% Reduction
93% Reduction
Same as baseline
Same as baseline
within 330 lbs.
Unchanged - no intrusion to
cargo area
Unchanged
16% improvement
Cruise Speed (MPH)
0-60 MPH Acceleration
(seconds)
Braking System
Range (miles)
Same as baseline
Same as baseline
Turning Radius (feet)
Maximum Launch Grade (%)
Maximum Grade at 55 MPH (%)
Cost Requirements
Lifetime Cost (Cents / Mile)
Same as baseline
Same as baseline
Same as baseline
Unchanged
Unchanged - downsized fuel
tank for weight reduction
Unchanged
52% Improvement
28% Improvement
Cost competitive
Improved over baseline
Same as baseline
Same as baseline
The test results in Table 2 are preliminary based on the first prototype vehicle.
Importantly, a 2004 certified diesel engine was not in the prototype vehicle. Final Future
test results with a later pre-production vehicle and a 2004 certified engine are will be
available expected in 2004.
FedEx Fleet in the Houston-Galveston Region
FedEx has a fleet of 443vehicles of all model years in the Houston-Galveston NonAttainment Area which account for 9.7 million vehicle miles each year. The most
popular single model vehicle in the fleet is the W700 step van of which there are 294, or
66% of the total fleet, in the region. The W700 step van is the vehicle which is targeted
to be replaced over time by the new diesel hybrid electric vehicle. The FedEx W700
trucks currently account for 6.2 million annual vehicle miles or 64% of the mileage of the
FedEx fleet in the non-attainment area.
FedEx reports that vehicles are kept in service for 10-12 years.5 This is consistent with
standard industry practice.
5
FedEx information provided by Ms. Alison Bird, Project Manager, Environmental Engineering, FedEx in
Memphis, TN through personal communications in 2003.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
A Vehicle Classification
A comparison of the truck classes used in this inventory with those used in the MOBILE6
emissions estimation program is shown in Table 4. The 16,000 gross vehicle weight
(gvw) of both the baseline and Eaton hybrid step vans put these vehicles in Class 4.
Because the hybrid propulsion technology can be applied to other classes of trucks,
information was collected on Class 3 and 5 trucks in addition to the Class 4 of the
vehicles under direct study. Photos of examples of Class 3, 4 and 5 trucks are shown in
Figure 3.
Table 3
Vehicle Classification
Source: Based on Office of Transportation and Air Quality, Technical Guidance on the Use of MOBILE6
for Emission Inventory Preparation, U.S. Environmental Protection Agency, January 2002.
EPA Description
LDV
LDT1
MOBILE6
LDT2
LDT3
LDT4
HDV2B
HDV3
HDV4
HDV5
HDV6
HDV7
HDV8A
HDV8B
HDBS
HDBT
MC
Light-Duty Vehicles (Passenger Cars)
Light-Duty Trucks 1 (0-6,000 lbs. GVWR, 0-3750 lbs. LVW)
Light Duty Trucks 2 (0-6,001 lbs. GVWR, 3751-5750 lbs. LVW)
Light Duty Trucks 3 (6,001-8500 lbs. GVWR, 0-5750 lbs. ALVW)
Light Duty Trucks 4 (6,001-8500 lbs. GVWR, >5750 lbs. ALVW)
Class 2b Heavy Duty Vehicles (8501-10,000 lbs. GVWR)
Class 3 Heavy Duty Vehicles (10,001-14,000 lbs. GVWR)
Class 4 Heavy Duty Vehicles (14,001-16,000 lbs. GVWR)
Class 5 Heavy Duty Vehicles (16,001-19,500 lbs. GVWR)
Class 6 Heavy Duty Vehicles (19,501-26,000 lbs. GVWR)
Class 7 Heavy Duty Vehicles (26,001-33,000 lbs. GVWR)
Class 8a Heavy Duty Vehicles (33,001-60,000 lbs. GVWR)
Class 8b Heavy Duty Vehicles (>60,000 lbs. GVWR)
School Buses
Transit and Urban Buses
Motorcycles (All)
Houston Advanced Research Center
R.L. Polk
Truck Class
Truck GVW
Categories
1C
2
2C
3
4
5
6
7
8
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Baseline Truck Inventory for the Houston/Galveston Region
Figure 4
Examples of Class 3, 4 and 5 Trucks
Source: http://www.trucktraderonline.com/index.html
Class 3 (10,001-14,000 gvw)
Class 4 (14,001-16,000 gvw)
Class 5 (16,001-19,500 gvw)
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
III.
Fleet Inventory
Determining the number of trucks in the eight-county Houston-Galveston NonAttainment Area requires estimation. Vehicle registrations do not capture the number of
trucks operating in an area since it is possible for the title holder to register the truck in a
county other than the county of operation. In addition, trucks based outside the study
area will travel into and through the region.
Texas Department of Transportation Vehicle Registrations
According to a January 20, 2002 tabulation of currently registered vehicles, there were
2,531 Class 4 registered trucks in the eight-county area and a total of over 14,000
vehicles in Classes 3, 4 and 5. These data are presented in Table 4.
Table 4
Total Class 3, 4, and 5 Trucks Registered in Houston-Galveston Area
Source: Texas Department of Transportation, January 30, 2002
County
Brazoria
Chambers
Fort Bend
Galveston
Harris
Liberty
Montgomery
Waller
Total Attainment
Area
Fuel
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Subtotal
Gasoline
Diesel
Total
Houston Advanced Research Center
Class 3
Class 4
Class 5
(10,001-14,000 gvw)
(14,001-16,000 gvw)
(16,001-19,500 gvw)
71
68
139
4
6
10
50
80
130
47
54
101
1,488
2,415
3,903
17
27
44
57
27
84
12
27
39
1,746
2,704
4,450
59
65
124
9
7
16
32
79
111
31
46
77
558
1,490
2,048
10
30
40
49
30
79
6
30
36
754
1,777
2,531
157
175
332
12
31
43
76
226
302
81
132
213
1,263
4,925
6,188
49
69
118
137
69
206
39
69
108
1,814
5,696
7,510
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Baseline Truck Inventory for the Houston/Galveston Region
R. L. Polk Vehicles in Operation Database
R. L. Polk data indicates that the current number of Class 4 trucks in the eight-county
Houston-Galveston region as is 1,212.6 Even though this represents only about one-half
of the trucks registered by the Texas Department of Transportation, the additional
information in the R. L Polk VIO database provides some insight into the region's truck
fleet.
Only about 6% of the Class 4 trucks are step vans similar to the FedEx W700. This
appears to be a conservative statistic since the regional FedEx fleet alone has a reported
294 W700 step vans. This apparent discrepancy is often explained by the location of the
entity registering the vehicle. Entities which hold titles to vehicles may choose to register
these vehicles in a county different than the county in which the vehicle is actually
operates.
The majority of the Class 4 trucks registered in the county are described as an
"incomplete vehicle," i.e., a chassis with an engine and steering wheel sent to body
builders for specific applications. Such vehicles are generally "vocational trucks"
intended for specific purposes, such as industrial catering. See Figure 5.
Table 5
Step Vans and Incomplete Vehicles in Houston-Galveston Region
Source: HARC tabulations of R.L. Polk Vehicles in Operation (VIO) database as of March 2003 for Brazoria,
Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller Counties, Texas
Truck Class
Type of Vehicle
Incomplete Vehicle
Step Van
Eight County Total
Class 3
3,128
101
3,229
97%
3%
100%
Class 4
1,137
75
1,212
94%
6%
100%
Class 5
50
50
100%
100%
Total of
Classes
3, 4 & 5
4,315
96%
176
4%
4,491 100%
Figure 5
Example of Incomplete Vehicle
According to the R. L. Polk database,
Class 4 vehicles are generally found in
small fleets. Of the 375 vehicles for
which fleets of Class 4 vehicles could be
identified, the fleet sizes are shown in
Table 6. According to Table 6, 72% of
the Class 4 trucks in the region are in
fleets of fewer than 10 such trucks. Of the
fleets with Class 4 vehicles, 93% of them
have less than 5 such vehicles.
6
HARC tabulations of R.L. Polk Vehicles in Operation (VIO) database as of March 2003 for Brazoria,
Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller Counties, Texas
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
Table 6
Total Class 4 Trucks in Houston-Galveston Region by Fleet Size
Source: HARC tabulations of R.L. Polk Vehicles in Operation (VIO) database as of March 2003 for Brazoria,
Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller Counties, Texas
Fleet Size
Vehicles
Number
30 or More
20 to 29
10 to 19
5 to 9
Less than 5
Total
Fleets
Percent
34
49
24
41
227
375
Number
9%
13%
6%
11%
61%
100%
Percent
1
2
2
7
172
184
1%
1%
1%
4%
93%
100%
Estimate of Current Fleet in Operation
In order to estimate the number of vehicles currently based in the Houston-Galveston
Non-Attainment Area, the vehicle miles used for air quality emission inventory purposes
was translated into an estimate of the number of vehicles. This maintains a rational
consistency between the officially-adopted and well-researched estimate of vehicle miles
of travel and the estimates here of the numbers of trucks and their activity. The
procedure is summarized in Figure 6.
Figure 6
Estimation Procedure for Number of Trucks in Operation in the Region
Total Daily VMT by Truck Class
and Fuel
Source: HGAC
Daily VMT per Truck by Class
and Fuel
Source: Census VIUS
Total Trucks by Class and Fuel
Source: HARC Tabulation
Percent Local Trucks by Class
and Fuel
Source: Census VIUS
Number Local/Non-Local Trucks
by Class and Fuel
Source: HARC Tabulation
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
The daily vehicle miles of travel by truck class and by fuel type which has been produced
by the Houston-Galveston Area Council was divided by the average daily miles per day
by vehicle class and fuel type from the latest U.S. Census' Vehicle Inventory and Use
Survey (VIUS). The result of this division is the expected number of trucks by class and
fuel type. The VIUS mean vehicle miles per truck used is the average of the expanded
sample of trucks based in Metropolitan Statistical Areas (MSAs). To convert from
annual to daily figures, a factor of 260 days per year was assumed.
The estimates of trucks by class and fuel type are further divided by whether these trucks
are locally based or not. Again, the VIUS is the basis for estimating these proportions by
truck class and fuel type. Only the data from MSAs in the VIUS were used for these
proportions. Locally-based trucks were determined to be those trucks which drove 100%
of their mileage within 50 miles or less from vehicle's home base. All other trucks were
defined as non-local vehicles. These trucks are not based within the region but travel
into, out of, or through the region.
The final results and independent parameters of these tabulations are shown in Table 7.
Table 7
Total Class 3, 4 & 5 Trucks in Houston-Galveston Non-Attainment Area
Source: HARC tabulations of VMT data provided by the Houston-Galveston Area Council for August 30, 2000 and
national averages for Metropolitan Statistical Areas of the miles per vehicle and percent locally based trucks in
the 1997 U.S. Census Vehicle Inventory and Use Survey
Truck
Class
Class 3
Class 4
Class 5
Fuel
Gasoline
Diesel
Total
Gasoline
Diesel
Total
Gasoline
Diesel
Total
Daily VMT
Daily
Miles/Vehicle
742,626.6
904,178.0
979,004.6
342,453.6
527,437.9
869,891.5
146,218.0
342,491.8
488,709.8
54.84
70.11
68.65
52.85
72.00
63.01
22.76
67.19
42.42
Number
of
Vehicles
Percent
Local
Vehicles
Number
of Local
Vehicles
Number of
Non-Local
Vehicles
13,542
12,897
26,439
6,479
7,325
13,805
6,424
5,097
11,522
39.1%
36.0%
36.3%
41.8%
36.5%
39.0%
65.2%
55.7%
61.0%
5,300
4,645
9,945
2,707
2,677
5,383
4,187
2,840
7,026
8,242
8,252
16,494
3,773
4,649
8,421
2,238
2,257
4,495
Note that, as expected, these estimates are higher than the counts dependent upon vehicle
registration data. For example, the total number of local Class 4 trucks is estimated to be
5,383. This compares to 2,531 Class 4 trucks registered in the area.
In total, it is estimated that there are almost 51,800 Class 3, 4 and 5 trucks operating in
the Houston-Galveston region and that they travel about 781 million miles annually.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
IV. Case Studies
A team from HARC interviewed representatives from selected fleets in the HoustonGalveston region on June 18-20, 2003. A number of fleets were contacted with the intent
of gaining insight into the different submarkets for the new vehicle. In particular, the
objectives were to:
•
•
Document the use of the vehicles in these fleets; and
Investigate the opportunities and challenges of sales of the new vehicle to these
submarkets.
Summary of Findings
While most of the variety of institutions and firms that were interviewed were interested
in a hybrid diesel truck, they had very different motives for the new technology and
varying impediments to adopting the new technology as well. In general, however,
businesses were concerned primarily with cost savings and environmental regulation.
Non-profits and government fleets were concerned with public relations, clean air and/or
sustainability motives. While a high initial cost posed concern to all, the university and
the City, due to their commitments to clean air, and the businesses, who saw the trucks as
an investment, were more likely to purchase these vehicles. Government entities are
concerned about current budgets, have a short political horizon, and are ill-equipped to
deal with an expensive investment.
Maintenance availability and costs, availability of parts, and related issues were also high
on all of the organizations’ agendas. The prospect of adopting a new technology is a
large risk because of the pressures to keep vehicles in service. At the minimum,
references should be provided so that prospective maintenance managers can understand
the difficulty or ease of maintaining these vehicles. Those who conduct their own
maintenance need reassurance of training, the availability of personal assistance, perhaps
in the form of a mobile, on-site, maintenance contact. For those who outsource their
maintenance, the availability of a centralized maintenance center, loaner vehicles (where
feasible) and inexpensive parts and repairs were of utmost importance.
In order to facilitate the purchase of hybrid trucks, several steps will need to be taken in
order to make the prospect of a new technology purchase less risky to prospective buyers.
The ease and availability of maintenance will have to be assured. Environmental
incentives to businesses, such as pollution credits or vehicle inspection waivers would
prove useful. Above all, however, all prospective buyers were interested in testing the
equipment prior to purchase. A loaner program, or a “buy one and get a loaner free for
six months” program would help mitigate the risks of purchasing an expensive, new truck
that may be likely to break down and be out of service, jeopardizing the user’s operations
and revenues. Despite the barriers to new technology adoption and with some of the
proposed solutions, hybrid trucks should generate substantial interest in the market.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
Interviews with Local Fleet Operations
This was not intended to be a random, scientific sample of fleets in the HoustonGalveston region. Rather, this survey was a qualitative assessment of the conditions of
both public and private fleets as well as fleets which use standard step vans and
"incomplete vehicles," i.e., customized vehicles.
Regal Food Service
Regal Food Service
3515 Eastex Freeway
Houston, TX 77026
Industrial Catering
Paul Uribe, Fleet Manager
Regal Food Service has a fleet of approximately 125 specialized catering vehicles at this
facility that provide industrial catering to work sites. Due to its business structure and the
need to customize each vehicle with a kitchen, Regal Food Service orders all of its
vehicles through a sister company in Los Angeles. The customization of the vehicles
transforms the $35,000 vehicles into a much more costly investment of nearly $80,000.
It is therefore important that all the vehicles are in use to the maximum extent possible.
Individual contractors rent or lease the vehicles and so both the firm and the contractor
lose revenues when a vehicle is out of service.
While the fleet manager does not have the power to purchase vehicles, he was able to
offer some insight into the problems facing Regal Foods and their vehicle fleet.
In order for a truck to be considered for purchase, it must have sufficient power. The
trucks weigh approximately 14,000 lbs. loaded, and many trucks are not able to handle
that workload. The reliability of the vehicle and its ease of maintenance are of primary
concern to this operation. Each vehicle averages approximately 60,000 miles per year and
needs to last approximately eight to ten years. With a relatively basic workshop, a newer
technology vehicle could pose a problem for the shop and its maintenance staff. Parts
availability was of major concern as well since this factor generally determines much of
the ease of maintenance. Additionally, the vendors rely upon their trucks for their
business, thus days that the trucks are down amount to devastating losses for those
operators.
Because of the company’s business model, the fuel economy of the vehicle was not of
primary concern to the fleet manager. While he noted that better fuel economy would be
nice, Regal Food Service does not pay for the fuel; rather, the individual operators pay
for the fuel. However, the fleet manager expressed enthusiasm concerning the prospects
for better emissions and the possibility of gaining pollution credits. While Regal Foods
voluntarily joined a regional pollution control program, they have had difficulty meeting
pollution reduction targets and this manager saw the hybrid vehicles as a way to meet
these targets and possibly gain some leeway with regulators.
Houston Advanced Research Center
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Baseline Truck Inventory for the Houston/Galveston Region
Lance, Inc.
Lance, Inc.
7250 W. 43rd Street Suite 100
Houston, TX 77092
Snack Route Sales
Robert McBride, District Operations Manager
This Lance distribution territory covers a large area from the Lower Rio Grande Valley to
Palestine ,in Texas. Trucks are used to distribute the snacks and refill vending machines.
This distribution center operates approximately 100 trucks, with over 2,800 operated by
the entire company. Maintenance at this location is outsourced. While they are generally
kept 8-10 years and operated for 65,000 miles per year, 65 new trucks were purchased in
this year alone. While many of the trucks are still diesel, there has been a recent
tendency to purchase more gasoline trucks and the fleet is currently about 70% gasoline.
The corporate office generally negotiates deals on trucks and but leaves purchasing
options to the district managers. Thus, if a new type of truck were to be considered, it
would first need corporate approval.
When making purchasing decisions, size, safety, initial cost, fuel costs, and the
availability of automatic transmission are the most important factors. Additionally,
though maintenance is outsourced, the ability to keep these trucks maintained in a timely
manner and at a reasonable cost was of utmost concern. Drivers are commissioned route
salespeople, and, if a truck goes down, the firm may not only lose the truck, but may lose
the employee. With the current average vehicle driving 65,000 miles per year and only
getting 10 miles per gallon, fuel costs are of major concern. In addition, the manager
noted that emissions inspections are a huge hassle and very costly for the company. He
mentioned a trend toward registering the vehicles in less restrictive counties in order to
avoid environmental regulations.
Because of these factors, the hybrid vehicle seemed like an attractive option for Lance,
Inc. The fuel savings over the lifetime of the vehicle justified a somewhat higher initial
cost for the truck and the operations manager noted that he might be willing to pay
$5,000 or $8,000 more for the hybrid vehicle. When pressed, he reasoned that it was
possible that he would pay up to $40,000 more per vehicle (the estimated fuel savings
over the lifetime of the vehicle was between $40k and $50k), depending on the
attractiveness of the other qualities of the vehicle, its reliability, and the accuracy of
expected cost savings. The prospect of continued rising fuel costs also provided an
incentive to adopt hybrid technology. He also noted that it would be an attractive option
if he did not have to have these vehicles tested for emissions or at least not pay to have
them inspected.
Despite the attractive features of the hybrid, the manager noted that significant incentives
and major cost savings would need to be offered in order to take a risk on new
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Baseline Truck Inventory for the Houston/Galveston Region
technology. A centralized maintenance facility, a loaner/trial program, and tax credits
were all attractive incentives. Of particular interest was a “buy one, get a loaner free for
6 months” option. In this proposed program, Lance, Inc. would purchase one hybrid
vehicle, purchasing a stake in the new technology, and get the use of a second vehicle for
six months, in order to mitigate the risk of a breakdown of the first truck. After the six
months, Lance would have the option to purchase the second truck. This manager saw
Houston as a good base to launch these vehicles as a pilot program, and then, if
successful, expand them throughout the rest of the company.
City of Houston
City of Houston
500 Jefferson Street, Suite 1825
Houston, TX 77002
General Purpose Municipal Government
Louis Reznicek, Purchasing Supervisor
The City of Houston has a very diverse fleet of vehicles including approximately 13
Class 4 trucks. Vehicle maintenance is done in-house.
The City of Houston’s interest in hybrid vehicles is very much in line with its previous
decision to purchase a fleet of gasoline-electric hybrid Toyota Prius automobiles and
provide leadership in green technology. As a matter of public policy, it is very important
that the City continue to adopt clean air technology. Pressure from the State and federal
level is also pushing LEV and ULEV fleet requirements.
While the expected fuel savings are useful, the initial cost of the vehicles is the most
important aspect to the purchasing office. The recent economic slowdown has placed a
greater emphasis on cost containment and a tendency to postpone new vehicle purchases:
$7.5 million for vehicle purchases was cut from the current City budget. Even with the
added cost, however, the City has shown that it is willing to pay more and take a risk on
new technology for clean air purposes. State and federal grants for capital purchases are
a significant factor in vehicle purchases, and hybrid propulsion vehicles are not
considered "alternative fuel" vehicles and are therefore not eligible for such grants. (I
think this may have changed in the last legislative session. HB1365 might have covered
this, but I’m not sure.)
Vehicle maintenance is conducted in-house. With the help of training from Toyota
provided at no additional charge, the City has been able to maintain the fleet of Prius
vehicles. The manager expects that similar training could be provided for the hybrid
trucks.
A loaner program such as was discussed with Lance won approval from the City Hall
purchaser. Additionally, he noted that any grants from the federal and/or State levels
would make purchasing hybrid vehicles much more attractive.
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William Marsh Rice University
Rice University
6100 Main Street
Houston, TX 77005
Eddie Cueto, Vehicle Repair Supervisor
Rice University operates and maintains a variety of vehicles including 150 electric golf
carts. The University is estimated to have five what are thought to be Class 4 trucks in its
fleet. Step vans are used by Rice University to distribute supplies around the Rice
University campus. Vehicles do not get much mileage – a 1985 Nissan truck was
recently retired at 27,000 miles – so that fuel cost savings is negligible.
However, the University is committed to sustainable development and green technology.
Pressure from students and the administration has led the way in the adoption of low to
zero emissions vehicles on campus. These hybrid trucks are a highly attractive option for
the University, which would likely be willing to pay 10% - 20% more for a hybrid
vehicle for their ability to reduce noise and air pollution on campus and demonstrate the
University’s leadership role in green technology. If the production diesel-electric hybrid
trucks perform as expected, Rice may be willing to purchase three to four vehicles.
Maintenance is the only real impediment to purchasing a hybrid vehicle fleet. There is a
lack of familiarity with the parts and the people on the maintenance end. The manager
was skeptical of warranties and the time to track down maintenance assistance. He
would want a reference about maintenance and cost of maintaining the vehicle.
Additionally, a loaner program, and the availability of a contact person for maintenance,
would facilitate a hybrid vehicle purchase.
Spring Branch Independent School District
Spring Branch Independent School District
16717 Ella Boulevard
Houston, TX 77090
Public School District
Don Marshall,, Transportation Supervisor
The Spring Branch Independent School District has two step vans used to deliver
supplies to schools within the district. Only about 5-6,000 miles are put on each of these
trucks in a year so there is no strong motivation to purchase a vehicle with greater fuel
economy. The District feels no particular pressure to reduce the emissions of its vehicles.
Vehicles are kept for 10-12 years.
V. Conclusions
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The objective of this task, i.e. an estimate of the current number and use of Class 4 trucks
in the eight-county Houston-Galveston Non-Attainment Area, has been achieved. In
addition, insight was gained into strategies to introduce the new diesel-electric hybrid
propulsion truck into the Houston-Galveston market.
Market Opportunities and Challenges
The diesel-electric hybrid Class 4 truck definitely has a market, or perhaps more
accurately, several markets in the Houston-Galveston Non-Attainment Area. As shown
in Table 7, there are approximately 5,400 Class 4 trucks in Houston region with a useful
life of 10 to 12 years. This amounts to 450 to 540 vehicles of this type being purchased
annually in the region. The following summarizes market opportunities and challenges
identified in the course of discussions with fleet operators:
The fuel saving potential of the new vehicle is an attractive feature to both public and
private fleets. High mileage private fleets using step vans or other "off-the-shelf" body
styles should be a successful market for this vehicle.
•
Potential for Substantial Fuel Savings: Many, but not all, governmental and
institutional entities appear to be attracted to the emissions improvements
expected from the vehicles. Some businesses will find this attractive as well as
they attempt to meet clear air commitments.
•
Emission Reductions Advantage for Fleet: Both public and private fleets
appear to be willing to pay a premium for the new, more efficient vehicle.
•
Willingness to Pay Premium for Vehicle: The premium identified range up to
20% based on expected fuel cost savings.
•
Advantage of Existing Hybrids in Marketplace: The entry of Toyota and
Honda gasoline-electric automobiles into the U.S. market has generated
awareness of hybrid propulsion. In general, this is a positive condition for the
hybrid truck market. However, at times, the hybrid automobiles did not meet
expectations. In addition, there is a perception that the diesel-electric vehicle will
be underpowered and difficult to maintain by a majority of those interviewed.
While the perception of sufficient power can be overcome, the maintenance
concerns must be addressed.
•
Vehicle Conversion Market: The R. L. Polk data suggests that vocational
vehicles, such as the industrial catering vehicle used by Regal Food Service, start
with a drive train and chassis (an incomplete vehicle) and are customized for a
particular niche in the truck market. These niche vehicle manufacturers will also
need to be aware of the new technology. The R. L. Polk data suggests that this is
a significant part of the existing truck fleet.
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Baseline Truck Inventory for the Houston/Galveston Region
•
Vehicle Purchase Decisionmakers: It is important to recognize that the vehicle
purchase decision will depend, at times, on more than one decision-maker and on
judgments made outside of the region. Some fleet officials, for example, decided
not to meet with the HARC team because vehicle purchase decisions were made
by corporate offices located in a different city.
•
Need for Local Maintenance Support: Maintenance of the new technology is a
major consideration in the vehicle purchase. Since many vehicle owners
outsource maintenance, it is critical that local commercial garages are capable and
enthusiastic when it comes to repair of the diesel-electric hybrid vehicle.
•
Education of Truck Financing Community: According to the R. L. Polk data,
the registered owners of many trucks in the region are firms financing the vehicle.
In order to be assured of an unimpeded entry into the market, it will be important
to educate the truck financing community as to the availability and performance
of the new vehicle.
Table 9 presents a summary of the major opportunities and challenges for introducing the
new vehicle in the Houston/Galveston region.
Table 9
Market Penetration Opportunities and Challenges
Secondary
Primary
Opportunities
Challenges
•
•
Fuel Savings
Emissions Improvements
•
•
Higher Purchase Price
Maintainability of New
Technology
•
Familiarity with Hybrid
Propulsion
•
Incomplete Knowledge of
Hybrid Propulsion
Advantages
Potential Incentives
The following describes various incentives that need to be explored for helping to ensure
smooth and rapid entry of these vehicles into the Houston marketplace.
•
Financial Incentives: Capital grants, rebates or tax incentives to reduce the high
initial cost of the purchase will be a tried and true incentive to purchase this
higher cost vehicle. A higher purchase price is perhaps one of the greatest
challenges to be faced, particularly lacking an established history of fuel savings
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and performance track record. There is also skepticism about reported fuel
savings that must be addressed. Financial incentives offer a way of minimizing
this barrier.
•
Provision of Loaner Vehicle: In some cases, when the vehicle is not
substantially customized, the availability of a loaner vehicle can allay the fears
that a vehicle may need repair and take substantial time to get that repair. Having
a six month trial vehicle, with an option to buy, as part of the vehicle sales
agreement could help mitigate the risk of purchasing a vehicle perceived to be
difficult to maintain. In a large urban area like Houston, it could make sense to
have a small number of hybrid vehicles available for demonstrations, for free
trials and to serve as loaners in the event that a purchased hybrid truck is out of
service.
•
Emission Inspection Waivers: Businesses would welcome the cost and time
savings of waiving of emissions inspections for hybrid vehicles. Waiving the fees
would reinforce the long-term cost savings of the vehicle.
•
Streamlined Warranty Provisions: While most maintenance managers are
skeptical of warranties, having the entire vehicle under warrantee or a centralized
service center could help reduce the fears of expensive and difficult maintenance.
Currently, various elements of existing trucks are warranted by different
manufactures. Chasing down the responsible firm in this situation can be a
frustrating experience for the fleet maintenance manager. Having the entire
vehicle under a singe warrantee would be an attractive feature.
•
Training for Maintenance Staff: Training maintenance managers and their
staffs how to maintain a hybrid truck could allay their fears about not having the
capability to perform maintenance on new technology. This is another
opportunity for government sponsorship of technology transfer activities.
• 24/7 Technical Assistance: Having technical experts available on the phone is a
necessary start, but having them available for on-site assistance could help the
maintenance managers surpass the obstacle of maintaining the new technology.
This is a level of service that is difficult to provide under normal business
conditions and perhaps could be assisted by a technology transfer program.
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