Hybrids – Vehicles, Battery & Hydraulic Technology

Eaton Assists Truck Fleet Owners in Applying for Government Diesel Hybrid Grants

March 18, 2009

KALAMAZOO, MI - Diversified industrial manufacturer Eaton Corporation announced it has established a program to assist diesel truck fleet owners in applying for the $156 million in grants for diesel hybrid trucks that are available under the American Recovery and Reinvestment Act (ARRA).

Under the Environmental Protection Agency's (EPA) related Diesel Emission Reduction Act (DERA), funding is available through ARRA for up to 25 percent of the cost of a new hybrid truck. Fleets are able to purchase multiple trucks. An existing diesel truck has to be taken out of service for each new hybrid truck purchased.

"This program is a unique opportunity for fleets to dramatically reduce vehicle emissions and fuel consumption while shortening their payback period for an investment in hybrid power," said Dontia Warren, market development manager for Eaton's Hybrid Power business unit. "This is a significant investment by the U.S. Government to help offset the initial costs of these clean vehicle solutions. Eaton has been working with industry experts and non-profit stakeholders to help fleet owners complete grant applications to apply for funding for new hybrid trucks."

Warren indicated by combining DERA funding with an IRS tax credit and the fuel and operating savings of a hybrid versus a conventional diesel truck, the cost of a new diesel hybrid truck could be about the same as a conventional new truck over a five-year period.

"There is a sense of urgency to our effort, since the submission period for EPA regional applications begins March 17 and ends April 27," said Warren. "Our goal is to identify all of our customers who qualify and want to take advantage of this opportunity by no later than April 1."

The DERA grants are made to non-profit organizations with jurisdiction over air quality for projects that reduce diesel emissions. The non-profit organizations submit the applications to the appropriate EPA regional office.

The Eaton hybrid system is available on truck models from International, Peterbilt, Kenworth, and Freightliner. Commercial vehicle fleets with Eaton hybrid systems have accumulated more than 12 million miles in revenue service to date. Delivery vehicles with the Eaton system are being used by companies such as Fed Ex, UPS, Coca-Cola, and Pepsi, to name a few. Work trucks with Eaton hybrid power are also in service at dozens of utility and telecom companies across North America. Benefits of the Eaton hybrid system include fuel savings ranging from 30 to 60 percent with similar percentages in emission reductions, extended brake life and reductions of up to 87 percent in idle times during work site operations.

Fleets and equipment eligible for DERA funding include buses, medium- or heavy-duty trucks, marine engines, and locomotives. Also included are vehicles with non-road or stationary engines used for construction, handling of cargo (at ports or airports), mining, and energy production.

More information about the EPA's DERA program is available at www.epa.gov/cleandiesel. Additional information about Eaton's program can be requested at [email protected].

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