Blue Bird OEM Propane School Bus Texas Railroad Commission Technology Forum

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Blue Bird OEMPropane School BusTexas Railroad
CommissionTechnology Forum

• Don Paull
• Capital Bus Sales

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New Ownership of Blue Bird

• September, 2006 Sale of Blue Bird to Cerberus
  Capital Management, L.P.
• New, experienced upper management team
• US based and owned company
• Cerberus owns many companies including
  Alamo/National Rental Car, Air Canada, Formica,
  Fila, 51 of GMAC Finance, North American Bus
  Industries (NABI, Optima, Blue Bird), Chrysler
• Increased Capital and Credit Line for Expansion
• Commitment to Growth of Blue Bird

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Blue Bird North Georgia Plant

• Vision Produced at Blue Bird North Georgia
  located in LaFayette, GA
• For 2nd Year in a Row -
• Blue Bird North Georgia Named One of 25
  Finalists for Industry Week Magazine Best Plants
  in North America

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Changes for Vision Bus

• New Hood Design
• New Dash Design
• New Steering Column/Wheel Design

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Blue Bird Now Offers OEMPropane School Bus

• Vision Conventional Type C School Bus
• 47 77 Passenger Capacity
• 189 to 273 Wheelbase
• Meets all Texas School Bus Specifications

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Advantages of Vision Bus

• Visibility Best in Industry
• Sloped Hood
• Vision Window Near Entrance Door
• Maneuverability Significantly Reduced Turning
  Radius Compared to Older Conventional Buses
• Quality of Blue Bird School Bus
• Service After the Sale

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Previous Blue Bird Propane School Bus Offering

• GM B7 Chassis
• GM 8.1L Gasoline Engine
• Only Available 59-77 Passenger
• GM Stopped Production of B7 Chassis
• No Gasoline Engines Available in Market
• GM Replacement Chassis Unacceptable to Dealers

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Grant from PERC

• Propane Education and Research Council (PERC)
  Grant Awarded to Blue Bird for Research
  Development Work on Propane School Bus
• Goal To Introduce OEM Propane School Bus to
  Marketplace
• Support from Texas Railroad Commission
• Panel of Propane School Bus Users Provided Input
  in Design Process Visit to Powertrain
  Integration in Detroit Prototype Buses Viewed

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Contract with Powertrain Integration

• Blue Bird to Supplied Two Vision School Buses to
  Powertrain Integration (May, 2006)
• Regular Production Buses with Diesel Engines
• One equipped with Hydraulic Brakes
• One equipped with Air Brakes
• Powertrain Integration Designed Engine Package
  and Assisted With Production Line Assembly
  Methods for Blue Bird

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Contract with Powertrain Integration

• Powertrain Integration Returned Buses to Blue
  Bird with 8.1L Engine Equipped with OEM Propane
  Fuel System Supplied by CleanFuel USA Liquid
  Propane Injection
• Buses were Fully Operational on Propane
• Both buses were crash tested (45 and 90 degree
  impacts) to check fuel system integrity passed
  with no issues

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• Liquid Propane Injection
• Sequential Port Injected
• Simple Design for the GM 8.1 Liter Engine
• Utilizes the GM P-59 Engine Control Unit
• Utilizes proven Components
• Manufactured by ICOM S.p.A. utilizing JTG
  technology
• Approximately 30,000 systems operating Worldwide
• Developed Certified by CFUSA for the GM 8.1 at
  the Millbrook (GM) Proving Grounds, Millbrook,
  England, the center of LPG fuel expertise for GM
  

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- Power Torque ComparisonOptimized LPG
Calibration vs. Gasoline

• LPI fuel system meets OEM Power Torque
  output
• Compliments the 8.1 Liter Engines Strong Torque
  Rise
• The LPI system does not exhibit the power
  torque loss of vapor injection systems.
• Excellent cold weather start and go without
  warm-up period

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Production Availability

• Regular Production of Blue Bird OEM Propane
  School Bus To Begin Late 2007/Early 2008
• Diesel Engine Prices Increased Significantly with
  2007 EPA Compliant Engines
• OEM Blue Bird Propane Bus to Offer Viable
  Alternative
• Texas Demo Bus September, 2007
• Texas Propane Road Show late September, 2007

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Introduction to Industry

• National Assn. of Pupil Transportation (NAPT)
• November, 2006
• STN Expo Reno, NV July 31, 2007
• Texas Assn. of School Boards (TASB)
• Dallas, TX - September 28-29, 2007
• National Assn. of Pupil Transportation (NAPT)
• Grand Rapids, MI Oct. 30-31, 2007
• (Blue Bird 80th Birthday!!)

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Cost Compared to Diesel Bus(Subject to Change)

• It Depends on What Bus Compared!!!
• Base Cost Approximately 7000 More Than Lowest
  Priced Diesel Bus of Same Specifications
• Lower Differential Cost When Compared to Higher
  Priced Diesel Engine Options
• (3000 - 4000)

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Propane Fuel Rebates

• Through 2009 Congress Has Authorized Alternative
  Fuel Rebate
• 50 Cents per Gallon for Propane
• School Districts Eligible to Apply for Rebate
  Direct from IRS if Have Own Fueling Facility
• Must Register with IRS Form 637
• File IRS Form 4136 Annually
• New Forms Available on www.irs.gov website

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Propane Incentives

• IRS Tax Credit
• Tax exempt purchaser will receive pass
  through credit
• Taxable purchaser will be eligible to take tax
  credit on federal taxes
• Texas Railroad Commission Funds
• TERP Clean School Bus Program
• Council of Government Funds (COG)

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IRS Tax Credit ??

• Details on Availability of Method to Pass Tax
  Credit to Tax-exempt Entities Still Unclear
• Need Method for Bus Dealers to Use Tax Credit and
  Pass to Tax-exempt Entities
• MSRP for Propane Fuel System Estimated 9500
  Subject to Change

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First Bus Order!!

• Northside Independent School District
• San Antonio, TX
• 16 Buses 71 Passenger Route Buses

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Contact for Additional Information

• Capital Bus Sales and Service of Texas, Inc.
• PO Box 1758
• Leander, TX 78646
• Phone [phone] or 512-528-0001
• E-mail capitalbus_at_att.net