exhibit 10. 7 attachment 1 statement of work for phoenix motorcars southern california airports – zero emission shuttle transportation the 2016 aqmp identifies the need for nox emission reductions as the most significant air quality challenge in meeting the upcoming ozone standard deadlines. significant increases in nox, pm and greenhouse gases emissions from airport shuttle buses are expected because airline passenger transportation and expansion of operations at various commercial airports are projected to increase in the near future. staff has been working with contractor, an electric vehicle manufacturer, to accelerate the development and deployment of battery electric shuttle buses. contractor has made significant progress deploying over 36 battery electric shuttle buses operating at the los angeles world airport and ontario airport for over two years and is committed to seeking funds from carb ’ s hybrid and zero emission truck and bus voucher incentive project ( hvip ) for battery electric shuttle bus replacement projects. this project is to replace 29 diesel and gasoline airport shuttle buses with new battery electric buses manufactured by contractor. the new electric buses are equipped with state - of - the - art electric drivetrain technology that delivers up to 100 miles range on a single charge. combined with dual charging capability, the buses are well suited to meet the requirements of most fleets operating on a fixed route within close proximity of the airport. as part of the eligibility requirement, staff will inspect existing shuttle buses for operability and drivability before the buses can be replaced with battery electric buses. upon successful inspection and replacement of the existing buses, contractor will be required to destroy or render the existing buses useless without cannibalizing any parts from the old engines. in addition, staff will confirm that each replaced bus and its engine have been destroyed by an authorized scrap yard. contractor will submit quarterly and annual reports during the project. contractor shall perform the following tasks : task 1 - program management 1. 1. contractor shall plan, coordinate, and report as required to successfully achieve the overall objectives of the project. contractor shall submit monthly status updates and quarterly reports as described in the deliverables section of this contract. 1. 1. contractor shall plan, coordinate, and report as required to successfully achieve the overall objectives of the project. contractor shall submit monthly status updates and quarterly reports as described in the deliverables section of this contract. 1. 1. 1. 2. contractor shall attend a “ kick - off ” meeting with the scaqmd. the administrative and technical aspects of this agreement will be discussed at the meeting. at a minimum,