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Investor Presentaiton

Example Strategy T4. Zero Carbon Medium- and Heavy-duty Vehicles Implement a low carbon fuels standard and deploy zero carbon medium- and heavy-duty vehicles and associated infrastructure. In 2020, Pennsylvania joined 14 other states and the District of Columbia in signing a joint memorandum of understanding (MOU) committing to accelerating adoption of zero carbon medium- and heavy-duty vehicles (MHDVS). The MOU aims for 30% and 100% of MHDV sales to be zero emission vehicles (ZEVS) by 2030 and 2050, respectively. Modeling for this strategy reflects this goal. Zero carbon MHDVS are emerging technologies, and research and development are ongoing to improve existing models and reduce capital costs. The modeling assumes a combination of battery electric, hydrogen fuel cell, and plug-in hybrid electric vehicles will be used to achieve the MOU goal. Pennsylvania can take advantage of BIL and IRA funds for installing charging infrastructure and replacing conventional MHDVS with zero emission vehicles. EPA's IRA-funded Clean Heavy-Duty Vehicle Program will provide funding for purchasing zero emission MHDVs, building out supporting infrastructure, and developing workforce training and other planning and technical activities. Funding from the BIL-funded NEVI Formula Program can be applied to MHDV charging infrastructure as well. Resulting Impacts Environmental KEY METRICS GHG emissions: 2030: 1.78 MMTCO₂e 2050: 10.94 MMTCO2e Economic Metrics: [The below to be included in the Updated Draft CAP (1/31)] Cost (or benefit) per ton MTCO₂e/reduced): NPV: Average annual gross state product: Average annual disposable personal income: Jobs: Battery electric MHDVS have no tailpipe emissions, and the only tailpipe emission from hydrogen fuel cell MHDVS is water vapor. As a result, transitioning conventional MHDVs to zero-emission vehicles reduces GHGs like CO2, CH4, and N₂O, as well as harmful criteria air pollutants, improving local air quality. As discussed in T3, additional electricity generated to charge electric MHDVS will result in lower GHG emissions than burning gasoline or diesel for these vehicles, mile-for-mile. However, for hydrogen fuel cell MHDVs to significantly contribute to GHG emission reductions, the hydrogen fuel needs to be produced with little to no net GHG emissions. The most significant reductions will result from using "green hydrogen," or zero-carbon produced by splitting water molecules into hydrogen and oxygen using renewable electricity (a process known as electrolysis). See strategy F3 for more details about the emissions impacts of using hydrogen fuels. Economic metrics will be added in the next iteration of the report 25 25 Confidential and Proprietary Greenhouse Gas Reduction Opportunities 61 راد ICF
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