1. V2G School Bus Project (ARV 13-011) Update to the California Energy Commission December 14, 2015

2. This is a commitment under the CGI Designed as a public demonstration project to prove TCO of EV School buses v. traditional fossil fuel school buses $3.8M Project with funding from CEC & SCAQMD, plus commitment partners – signed in 2014 Retrofit/repower of 6 1996 Type C school buses Deployed to TUSD (SCE territory), NVUSD and ESD (PG&E territory) Will incorporate V2G capability in order to fully study TCO Excellent Stakeholder Cooperation- CAISO, CPUC, CEC, CHP, SCAQMD, PG&E, SCE, NREL, CGI Partners, School Districts (from Administration to drivers) Project Snapshot 2

3. The First one is the hardest! Commissioning Test drives began last week on EV School Bus #1 Integration of EV School Bus #2 underway All 6 School buses delivered to USD by June 2016 EV School Bus #2 to participate in NREL study Bus Production 3

4. 115 kWh of on-board energy storage (92 kWh usable) 1.1-1.3 kWh per mile 70-80-mile range On-board charger and bidirectional inverter Inverter rated at 70 kW (both directions) Land-side EVSE (an interface, not a charger) rated at 43 kW Plenty for the anticipated charging regime Charging System Specifications 4

5. Not a small deal! Two EV school buses in Torrance will double the bus-yard electric load Installation expense adds significantly to project cost ($50K-$100K) -- even though inverter and charger are on bus Expense doesn’t scale in linear proportion (cost of 4 buses < 2X 2 buses) This creates an economic incentive to convert fleets rather than 1-2 vehicles to claim “green” credential Key decision: electric service upgrade vs. installation of a new service Upgrade allows buses to be used for electric bill management (most valuable V2G application in Torrance) Charging Equipment Installation 5

6. Good news: interconnection application process is now well established for photovoltaic and other conventional applications Bad news: mobile energy storage is not (yet) a conventional application Certification to applicable safety standards is required... but the standards regime is still a work in progress What standards apply: IEEE 1547, UL 1741, SAE J3072, UL 9741? To what do they apply: on-board inverter, land-side EVSE? We were unable to climb this hill for ARV 13-011 We will interconnect in Torrance, but... We are required to install protective relays Interconnection Process 6

7. Provision of Ancillary Grid Services 7 FEASIBLE TODAY Energy bill management (vehicle-to- premises) Peak shaving / energy arbitrage Demand charge reduction Demand response V1G V2G Utility program vs. wholesale POTENTIALLY FEASIBLE IN FUTURE Utility-scale distribution support Wholesale markets Energy Non-spinning reserve Spinning reserve Frequency regulation

8. School buses have mixed alignment with essential dimensions of demand response programs A lackluster economic outcome is a direct result of this reality Demand Response Alignment 8 DimensionCondition Power rating relative to required minimum Can achieve required minimum of 100 kW of load reduction via curtailment of bus charging and supplying facility energy needs from bus batteries Time of day Utility DR programs have stipulated hours (typically starting in the a.m. and going into the p.m.) when buses aren’t available Wholesale program does not have stipulated hours, but need declines as evening progresses - Availability of stored energy State of charge is at its lowest point at end of afternoon run when DR participation would be most valuable; increasing state of charge requires charging at on-peak rates

9. 15 CategoryTotal SavingsPer BusDrivers Fuel$8,100$4,050 Change in electric rate schedule enabled by increase in electricity consumption (kWhs) Electric Bill Management $4,100$2,050 Use of bus batteries can decrease monthly demand peak (12 months per year) Displacement of on-peak kWhs by off-peak kWhs (June-September) Total$12,200$6,100 EV Bus Economic Impact Torrance Unified School District / Two Buses

10. Consider special interconnection/VGI policy for public sector entities. The common goal of achieving more EVs on the road in CA will probably be led by government fleets Using the lens of grid safety and robustness, address the challenge of a power-exporting resource that can be plugged in at an unlimited number of locations Goal would be a set of certification options that do not impose excessive and unnecessary costs on mobile energy storage resources VGI Research Priorities - 1 10

11. Investigate the state of HD EV plug standardization and determine if the State can play a constructive role Model the impact on fleet vehicles of tariff structures with strong time-of- use components Study the regime under which the cost of distribution upgrades at the local circuit level are shared by the fleet owner VGI Research Priorities - 2 11

12. Kevin Matthews Kmatthews@nationalstrategies.com Steve Crolius scrolius@alliancecg.com Contact Information 12