b'FOGHORN FOCUS Our plan means buildingstarting with our shortest routes. To date, we have secured more than $125 million, which is nearly all of the funding not only battery-electricneeded to complete Phase 1 and a significant amount to-ferries to meet needs onward Phase 2. Our plan means building not only battery-electric ferries our current and plannedto meet needs on our current and planned short routes but building new larger battery-electric ferries and even convert-short routes but buildinging some of our existing diesel fleet to electric propulsion. new larger battery-electricLikeothersaroundtheworldnavigatingthisissue,we ferries and even convertinghave learned that operating these state-of-the-art electric vessels will require significant investment in shoreside in-some of our existing dieselfrastructure. To minimize charging time during the day we will retrofit our terminal floats to hold batteries that fleet to electric propulsion.can be charged at night when electricity is more affordable, preparing them to rapidly charge our vessels during dwell time throughout the service day. We expect to begin con-struction on our first new battery float this year. After that When it comes to emissions, the fleet is the cleanest in thewe will begin retrofitting existing floats. country. In 2017 we delivered the nations first U.S. En-vironmental Protection Agency (EPA) Tier 4 equivalentCollaborationwithpeersworkingtodecarbonizethe passenger ferry, MV Hydrus. Three more vessels matchingindustryhasbeenrewardingandvital.Itwasnotvery that design joined our fleet over the next two years. Inlong ago when we thought that it would be impossible to 2019 we delivered MV Pyxis, the first EPA Tier 4 certifiedoperate a high-frequency, high-speed ferry network using passenger ferry in the United States. That was followedbattery electric vessels. But after meeting with our peers in by two more vessels in the Pyxis class, plus the first twoNorway, Sweden, New Zealand, and elsewhere, we learned ferries in our 320-passenger Dorado class, which meet Tierthat technology was evolving quickly and that we should 4 low-emission standards while operating at 36 knots on abe planning for a battery electric future. In 2021 Norway hull design that has reduced fuel burn by 40 percent. Welaunched the Medstraum, an electric vessel that can oper-have also converted four 15-year-old vessels to Tier 4 pro- ate at 26 knots for over an hour. That was our cue to make pulsion systems.a commitment to zero emission and to announce that we will not be purchasing any additional diesel vessels once Today, 13 of our fleets 17 vessels are Tier 4 certified orthose under construction have been delivered.equivalent. These projects are improving health outcomes in waterfront communities in the Bay Area and helping toWith financial resources secured, last year we hired the push the American shipbuilding industry forward.team at Wrtsil, a fellow PVA member, to serve as our systemintegratortomakesurethatthecharginginfra-But operating the nations cleanest diesel ferry fleets is astructure, batteries, and vessels all work together optimally. waypoint for San Francisco Bay Ferry, not an endpoint. Wrtsil served this same role for the Medstraum develop-ment. Thanks to their work, along with two additional AsapublictransitagencywithaccesstodiscretionaryPVA member companies Aurora Marine Design and El-grantprogramsdesignedtoadvancezero-emissionmar- liott Bay Design Group, we will award contracts this year itime programs, it is our obligation to push the envelopefor the construction of our first five electric vessels and the and help inspire the industry to evolve. Thats why we arefloats and charging infrastructure needed to operate them. moving aggressively to transition our fleet to zero-emissionBy 2026, San Francisco Bay Ferry will launch the countrys propulsion. SF Bay Ferrys Rapid Electric Emission-Freefirst high-speed electric ferries and they will be the most (REEF) Ferry Program will phase in battery-electric vesselsadvanced in the world. When it comes to decarbonization, FOGHORN 10'