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2024 SmartWay Leader: Penske Truck Leasing

SMARTWAY PROFILES IN LEADERSHIP AREA OF
EMPHASIS

Technology Innovation — New vehicles, equipment or
associated supporting infrastructure to move and deliver
goods more efficiently in the freight supply chain network, (e.g.,
electric or alternatively powered vehicles, autonomous
vehicles, etc.)

"We're excited to be working with Hitachi on
deployment of this cutting-edge technology.

When we were first introduced to the Grid-
eMotion solution, we were impressed with its
capability and flexibility and what that could
mean for our customers. This installation in
Stockton will provide 'real world' experience and
significantly enhance our collaboration with

Hitachi."

- Drew Cullen, Senior Vice President of Fuels and Facility

Services, Penske

ALTERNATIVE FUEL OPTIONS AND SERVICES FOR
ADVANCED-VEHICLE DEPLOYMENT

Penske Truck Leasing has designed a suite of options to meet
customer demand for moving goods using cleaner options that include services for advanced-vehicle
deployment, fueling-options, and greater availability and flexibility to use alternatively fueled vehicles.

ABOUT COMPANY

Penske Truck Leasing is a Penske
Transportation Solutions company
headquartered in Reading,
Pennsylvania. Solutions from Penske
include full-service truck leasing,
fleet maintenance, truck rentals, used
trucks, and a wide variety of services
and technologies to meet customer
needs.

For more information, visit our
website:

www.PenskeTruckLeasing.com

Contact:

Ivet Taneva

VP, Environmental Affairs
at ivet.taneva(a)penske.com
or (682) 465-5615

Formation of Penske Energy

Penske T ransportation Solutions and ForeFront Power formed a new joint venture named Penske Energy
LLC. The new venture aims to help commercial fleet operators plan, design, and deploy optimized electric
vehicle (EV) charging infrastructure that supports and safeguards their operations. Penske Energy will
provide fleet operators with EV charging and energy infrastructure consulting that includes strategic and
operational planning, technology assessment, infrastructure designs, and practical project implementation.

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ZEV Deployment and Testing of Alternative Technologies

Penske has been an early adopter of battery-electric commercial vehicles and has made substantial
investments in testing, maintaining, and expanding charging infrastructure to support these vehicles. The
company continually tests and operates EV trucks across its leasing, rental and logistics fleets in various
industries including retail, manufacturing, grocery, guick-service restaurant chains, medical, automotive
parts, and others. Penske currently participates in the deployment of a wide selection of zero- emissions
vehicles and continues to expand its charging network of Direct Current Fast Charging (DCFC) and level-2
charging across California and other states within the U.S. Penske's fleet includes electric vehicle options
such as: Ford eTransitand Bright Drop Zeco cargo vans; Freightliner MTsoe; Xos step van; REE automotive;
International eMV EV; Freightliner eM2 EV; Isuzu NRR EV; Volvo VNR tractor; Freightliner eCascadia; and
Orange EV yard tractor.

In addition to EV deployment, Penske Truck Leasing has worked with vehicle manufacturers to enhance EV
offerings. Penske is adding its first electric truck from REE Automotive Ltd., an automotive technology
company and provider of full by-wire electric trucks and platforms. Penske intends to deploy the software-
driven P7-C EV to interested customers. These vehicles will benefit from a supplier driven cross-
collaboration, where REE teamed with Wabash to upfit the P7-C chassis with a custom DuraPlate truck body
utilizing the unigue low floor, all-wheel steer, all-wheel drive, and a full "drive by wire" architecture. Wabash's
DuraPlate technology is designed to be lightweight and durable, incorporating "light weighting" goals and
adding additional energy efficiencies into the overall product.

Penske focuses its strategy on pursuing grant opportunities through various agencies and partnerships,
which allows Penske to test the newest state-of-the-art technology in the industry. Some key customer
deployments include Costco's Orange EV yard tractors in which Costco, Penske, and MSRC partnered to
deploy five-yard tractors in one of Costco's main depots in California. These yard tractors are replacing
conventional diesel eguipment, resulting in reduced emissions, reduced downtime and increased efficiency.
In another collaboration with Balford Farms, a Penske Truck Leasing customer, Penske has enabled the
addition of Ballard Farms' first electric yard tractor to its fleet. The Orange EV yard tractor will support the
company's warehouse and distribution center, which operates 24 hours a day, 365 days a year.

Expanding Availability of Fuel Choice

In addition to innovative vehicle deployments, Penske has made concerted efforts to expand access to fuel
or energy options, including Renewable Diesel (RD) and electricity. Penske is partnering with Hitachi Energy
to launch a large-scale centralized electric truck charging pilot in Stockton, CA. For this pilot initiative, Hitachi
Energy has supplied Penske with its state-of-the-art Grid-eMotion® Fleet EV charging system. The
integrated DCFC (direct current fast charging) solution is designed to scale up and deliver multi-megawatt
level charging capabilities, tailored to meet the demanding reguirements of truck fleets of varying sizes. The
new system's features include its ability to reduce space reguirements up to 60 percent compared to

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conventional charging systems. Additionally, it cuts cabling needs up tc
40 percent - ensuring effective use of resources while maintaining
high-capacity charging for EVs.

Penske is deploying other alternative fuels, such as Renewable Diesel
(RD) in states with low carbon fuel standards (LCFS) states.

Renewable diesel is currently available at all Penske Truck Leasing
locations in California and Oregon. This provides accessibility across a
broad operational region to make this transition to renewable diesel as
easy as possible for their regional customers.

Because Renewable Diesel can be produced from raw materials (also
known as feedstock) such as crop residues, animal fats, used cooking
oil, vegetable oil, fish fat and switchgrass, many forms of renewable
diesel quality as advanced biofuel under the U.S. Environmental
Protection Agency's (EPA) Renewable Fuel Standard (RFS) Program, all
while still meeting ASTM D975 spec for traditional petroleum diesel.

Renewable diesel can significantly reduce emissions compared to
fossil fuel-based diesel. More specifically, renewable diesel reduces:

Lifecycle greenhouse gas (GHG) emissions by 50 percent or more;

Particulate matter by more than 40 percent; Carbon monoxide by more than 25 percent; Total hydrocarbons
by more than 20 percent; and Nitrogen oxides (NOx) by 10 percent.

Additional characteristics and benefits of renewable diesel include its full compatibility with all diesel
engines, higher cetane level for better performance, lower aromatics for improved public health, and
excellent cloud point for cold weather use. It is being used as a drop-in product that does not require
modifications for tanks or vehicles and is original equipment manufacturer (OEM) approved. In sum, use of
renewable diesel can reduce implementation costs and complexities, as well as result in less maintenance-
related issues.

OUTCOME/ RESULT/ IMPACT

% Advancing the understanding of the use-case for electric vehicles and renewable diesel to inform rapid
scaling.

% Organizing for growth in demand.

•	The formation of Penske Energy lays the foundation for applying integrated alternative vehicle-
infrastructure solutions under increasing demand scenarios.

•	Build-out of Penske-provided alternative fuel infrastructure sets the conditions for its customers to
have more fuel choices that meet their operational and sustainability needs.

| Call-Out Benefit

A combination of
providing sustainable
fuel choices for
goods movement, as
well as services that
treat vehicles and
infrastructure as a
"system," can
increase the pace of
successful transition
to zero- and near-
zero freight
movement.

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"LEADING THE WAY": TRANSFERABLE LESSON LEARNED

A variety of alternative fuel options will be needed to meet the needs of a varied customer base that seeks to
grow advanced-vehicle deployment in both the near- and far-terms. The scalability of each alternative fuel
type - such as the ability to provide a range of charging station sizes or a range of renewable diesel fuel
amounts - can also aid in the phased deployment of these fuels into real-world operations.

The deployment of zero- or near-zero emission vehicles and infrastructure to urban or space-limited
environments can have significant positive impacts on the communities in which they operate - both from
noise and air quality perspectives.

CONCLUSION

The deployment of alternatively-fueled vehicles, the installation of infrastructure needed to provide fueling
options for more than just deisel, and the services to ensure that the vehicle-infrastructure system is
developed in an integrated way, is critical to providing fuel choices that are needed to advance the
deployment of zero- and near-zero freight transportation.

SmartWay Profiles in Leadership

Profiles in Leadership is SmartWay's newest recognition initiative. Beginning this year, EPA will
recognize freight sustainability leadership actions of SmartWay Affiliates and eligible SmartWay
Partners (Logistics companies, Air carriers, Barge carriers and Rail carriers). EPA developed this
recognition concept after hearing that Affiliates and Partners would like to see greater opportunities
for recognition of sector leadership. EPA SmartWay created this new type of recognition to provide
additional opportunity for advancing freight transportation sustainability.

SmartWay defines leadership in this context as the ability to drive change, influence industry, lead
freight efficiency performance, and sustain freight-related environmental excellence. Profiles in
Leadership is an official SmartWay program acknowledgement of leadership demonstrated by
investments that are strategic, financial, and innovative, which will yield future environmental and
efficiency benefits.

EPA-420-F-24-037 | December 2024 | SmartWay Transport Partnership | epa.gov/smartway	4


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