AFMI Workbook Natural Gas Section 1stEdition Final Revision9 15 … 1_Natural Gas... ·...

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Disclaimer This%report%was%prepared%as%an%account%of%work%sponsored,%in%part,%through%a%grant%from%the%United%States%Department%of%Energy%–%National%Energy%Technology%Laboratory,%project%DEGEE0006077.%Neither%the%United%States%Government,%nor%the%Center%for%Transportation%and%the%Environment,%nor%any%grant%subGrecipient,%nor%any%agency%thereof,%nor%any%of%their%employees,%makes%any%warranty,%expressed%or%implied,%or%assumes%any%legal%liability%or%responsibility%for%the%accuracy,%completeness,%or%usefulness%of%any%information,%apparatus,%product,%or%process%disclosed,%or%represents%that%its%use%would%not%infringe%privately%owned%rights.%Reference%herein%to%any%specific%commercial%product,%process,%or%service%by%trade%name,%trademark,%manufacturer,%or%otherwise%does%not%necessarily%constitute%or%imply%its%endorsement,%recommendation,%or%favoring%by%the%United%States%Government,%or%the%Center%for%Transportation%and%the%Environment,%or%any%grant%subGrecipient,%or%any%agency%thereof.%The%views%and%opinions%of%the%authors%expressed%herein%do%not%necessarily%state%or%reflect%those%of%the%United%States%Government%or%the%Center%for%Transportation%and%the%Environment,%or%any%grant%subGrecipient,%or%any%agency%thereof.%%%%

Acknowledgements %The%accomplishments%achieved%through%the%Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%would%not%have%been%possible%without%considerable%efforts%from%and%the%dedication%of%the%project%partners,%including:%%

%%%

Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%Partners%

Alabama%Clean%Fuels%Coalition%Phillip%Wiedmeyer%

Mark%Bentley%

Center%for%Transportation%and%the%Environment%

Steve%Clermont%Wendy%Morgan%

Ryan%Fritz%Griffin%Hanekamp%

Harrison%Aiken%Alison%Sillins%Kevin%Arpin%Sunny%Song%

Shannon%Evanchec%

City%of%Atlanta%Ruthie%Norton%

Juan%GarciaGSanchez%Clean%Cities%–%Georgia% Don%Francis%

Clean%Fuels%of%West%Tennessee% Paul%Rice%

East%Tennessee%Clean%Fuels%Coalition%Kristy%KeelGBlackmon%

Jonathan%Overly%Middle%Tennessee%Clean%Fuels% Atha%Cominskey%

Palmetto%State%Clean%Fuels%Coalition%Jennifer%Taraskiewicz%Jennifer%Satterthwaite%

Southern%Company%

Randy%Johnson%Cedric%Daniels%

Ben%Echols%Diane%Harris%


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The%Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%partners%also%want%to%recognize%the%contributions%of%countless%stakeholders%who%generously%shared%their%expertise%and%knowledge%in%the%course%of%identifying%barriers%in%the%region%hindering%the%deployment%of%alternative%fuels%and%developing%solutions%to%overcome%these%barriers.%The%series%of%workbooks%developed%under%the%Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%would%not%have%been%possible%without%their%invaluable%contributions%and%the%team%would%like%to%thank%the%following%organizations%for%their%input:%%

Questions? Comments? Suggestions? %Please%send%an%email%to%[email protected]%with%any%suggestions%for%improvements%or%new%case%studies%for%future%editions%of%the%Southeast%Regional%Alternative%Fuels%Readiness%Workbook.%%% %

Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%Stakeholders%AGL%Resources% Georgia%Department%of%Transportation%Air%Components%&%Systems,%LTD% Greenwood%County%Sheriff’s%Office%(SC)%Alabama%Department%of%Corrections% Hawkins%County%Gas%Utility%(TN)%Alabama%Propane%Gas%Association%% ICOM%North%America%Alliance%Autogas% IMPCO%Altech%Eco% Knox%County%(Fleet%Maintenance)%(TN)%Amerigas% Knox%County%Community%Actions%Committee%(TN)%Atlanta%Police%Department%Foundation%(GA)% Knoxville%Utilities%Board%%Blu% Loves%Blue%Bird% Mach%Fuels%City%of%Athens%(AL)% Mapco,%Delk%US%Holdings%City%of%Covington%(GA)% Morgan%County%Schools%(TN)%City%of%Kingsport%(TN)% NGVMotori%City%of%Knoxville%(Office%of%Sustainability)%(TN)% Oak%Ridge%National%Laboratory%City%of%Rock%Hill%(SC)% Palmetto%Gas%City%of%Sevierville%(Fleet%Manager)%(TN)% Palmetto%Propane%City%of%Sevierville%(Public%Works)%(TN)% PBG%Energy%Clean%Energy%Fuels% Phoenix%Energy%Common%Grounds%Landscaping% Piedmont%Natural%Gas%Cynergy% ROUSH%Clean%Tech%DeKalb%County%(GA)% SC%Truck%Centers%Georgia%Department%of%Administrative%Services% SCE&G%eGEnergy% Scott%Appalachian%Industries%Eastman%Chemical%Company% Snapping%Shoals%EMC%(GA)%EcoDual% South%Carolina%Propane%Gas%Association%Georgia%Environmental%Protection%Division% Trillium%Ferrellgas% Westport%Force%911% WW%Williams%GAIN%Fuel% Yancey%Brothers%Georgia%Public%Service%Commission% %


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TABLE OF CONTENTS !TABLE!OF!CONTENTS!........................................................................................................................................!IV!TABLE!OF!TABLES!....................................................................................................................................................!IV!TABLE!OF!FIGURES!.....................................................................................................................................................!I!SECTION!1:!INTRODUCTION!....................................................................................................................................!1!Key$Terms$.................................................................................................................................................................$3!

SECTION!2:!ABOUT!NATURAL!GAS!........................................................................................................................!4!Natural$Gas$as$an$Alternative$to$Petroleum$.............................................................................................$4!Natural$Gas$Availability$....................................................................................................................................$6!Environmental$Benefits$.....................................................................................................................................$8!

SECTION!3:!NATURAL!GAS!APPLICATIONS!...........................................................................................................!9!SECTION!4:!NATURAL!GAS!VEHICLES!.................................................................................................................!11!Current$Natural$Gas$Vehicle$Availability$................................................................................................$11!

SECTION!5:!ACQUIRING!NATURAL!GAS!VEHICLES!FOR!A!FLEET!...................................................................!18!Availability$of$Vehicles$Through$Lease$Agreements$..........................................................................$18!Public$Sector$Fleet$Procurement$of$Natural$Gas$Vehicles$and$Purchase$Considerations$..$18!Natural$Gas$Vehicle$Costs$..............................................................................................................................$18!Natural$Gas$Vehicle$Maintenance$Considerations$..............................................................................$21!Natural$Gas$Vehicle$Fueling$Considerations$.........................................................................................$21!Natural$Gas$Vehicle$Cost$Tools$and$Calculators$..................................................................................$21!

SECTION!6:!NATURAL!GAS!FUELING!INFRASTRUCTURE!.................................................................................!28!AFDC$Station$Locator$......................................................................................................................................$28!Types$of$CNG$Fueling$Stations$.....................................................................................................................$29!LNG$Fueling$..........................................................................................................................................................$31!Infrastructure$Deployment$Assistance$.....................................................................................................$31!

SECTION!7:!NATURAL!GAS!VEHICLE!AND!INFRASTRUCTURE!INCENTIVES!AND!OTHER!ALTERNATIVE!FUEL@RELATED!POLICIES!.....................................................................................................................................!32!Federal$NGV$Incentives$...................................................................................................................................$32!Natural$Gas$Incentives$in$the$Southeast$Region$..................................................................................$32!Other$Federal$Policies$Influencing$NGV$Deployment$.........................................................................$35!Other$Laws,$Regulations,$and$Policies$Influencing$NGV$Deployment$in$the$Southeast$Region$.....................................................................................................................................................................$35!Utility$Programs$Influencing$NGV$Deployment$in$the$Southeast$Region$.................................$38!

SECTION!8:!THE!FUTURE!OF!NATURAL!GAS!.....................................................................................................!40!CNG$Outlook$.........................................................................................................................................................$40!LNG$Outlook$.........................................................................................................................................................$41!

SECTION!9:!NATURAL!GAS!CASE!STUDIES!........................................................................................................!43!


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Table of Tables TABLE!1:!NGV!LIGHT@DUTY!VEHICLE!AVAILABILITY!(MY!2012/2013/2014)!.............................................................!12!TABLE!2:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!SCHOOL!BUS!APPLICATIONS!................................!12!TABLE!3:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!TRANSIT!APPLICATIONS!.......................................!13!TABLE!4:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!REFUSE!HAULER!APPLICATIONS!.........................!13!TABLE!5:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!STREET!SWEEPER!APPLICATIONS!......................!14!TABLE!6:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!TRACTOR!APPLICATIONS!.....................................!14!TABLE!7:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!VAN!APPLICATIONS!...............................................!14!TABLE!8:!NGV!HEAVY@DUTY!VEHICLE!AND!ENGINE!AVAILABILITY!–!VOCATIONAL!TRUCK!APPLICATIONS!..................!15!TABLE!9:!COMPANIES!OFFERING!CONVERSION!SYSTEMS!........................................................................................................!16!TABLE!10:!NATURAL!GAS!STATIONS!IN!FOUR@STATE!REGION!...............................................................................................!29!TABLE!11:!FUTURE!NATURAL!GAS!VEHICLES!AND!ENGINES!...................................................................................................!41!


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Table of Figures FIGURE!1:!CLEAN!CITIES!INITIATIVES!TO!ADVANCE!ALTERNATIVE!FUEL!MARKETS!.............................................................!1!FIGURE!2:!U.S.!IMPORTS!OF!CRUDE!OIL!AND!PETROLEUM!PRODUCTS!.....................................................................................!5!FIGURE!3:!U.S.!AVERAGE!RETAIL!FUEL!PRICES!............................................................................................................................!5!FIGURE!4:!U.S.!NATURAL!GAS!PIPELINES!......................................................................................................................................!6!FIGURE!5:!SOUTHEAST!NATURAL!GAS!PIPELINES!........................................................................................................................!7!FIGURE!6:!CYNERGY!SAVINGS!CALCULATOR!...............................................................................................................................!22!FIGURE!7:!AFDC'S!COST!CALCULATOR!INPUTS!.........................................................................................................................!23!FIGURE!8:!AFDC'S!COST!CALCULATOR!RESULTS!......................................................................................................................!23!FIGURE!9:!VICE!2.0!INPUT!EXAMPLES!.......................................................................................................................................!24!FIGURE!10:!AFLEET!TOOL!KEY!INPUTS!....................................................................................................................................!26!FIGURE!11:!AFLEET!TOOL!RESULT!1!........................................................................................................................................!27!FIGURE!12:!AFLEET!TOOL!RESULT!2!........................................................................................................................................!27!FIGURE!13:!ALTERNATIVE!FUELING!STATION!LOCATOR!.........................................................................................................!28!FIGURE!14:!TIME@FILL!STATION!..................................................................................................................................................!30!FIGURE!15:!FAST@FILL!STATION!..................................................................................................................................................!30!FIGURE!16:!CONTAINERIZED!LNG!STATION!..............................................................................................................................!31!FIGURE!17:!CNG!FUELING!STATIONS!..........................................................................................................................................!40!FIGURE!18:!LNG!FUELING!STATIONS!..........................................................................................................................................!42!!! !


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Section 1: Introduction There%is%growing%interest%in%the%U.S.%for%alternatives%to%petroleumGbased%transportation,%as%Americans%are%turning%away%from%gasoline%and%dieselGfueled%vehicles%for%a%variety%of%reasons.%Rising%and%unstable%gasoline%and%diesel%prices%have%severely%strained%the%economy%and%have%led%to%inflationary%pressures.%Continued%turmoil%in%the%MidGEast%leaves%the%United%States’%oil%supply%and%economy%vulnerable.%In%addition,%vehicle%emissions,%particularly%from%older%model%vehicles,%contribute%to%poor%air%quality%which%can%inGturn%contribute%to%various%health%problems.%Deployment%of%alternative%fuel%vehicles%(AFVs)%into%the%marketplace%can%help%alleviate%dependence%on%foreign%oil,%offer%more%costGeffective%transportation%options,%and%may%reduce%harmful%pollutants,%particularly%greenhouse%gas%emissions.%These%vehicles%use%low%cost,%domestically%produced%energy;%fuels%such%as%propane%and%natural%gas%are%abundant%in%the%United%States%and%have%a%lower%carbon%content%than%gasoline%and%diesel.%However,%to%have%a%noteworthy%impact%on%the%economy,%energy%security,%and%the%environment,%significant%strides%must%be%made%in%the%education,%acceptance,%and%deployment%of%alternative%fuel%vehicles.%%This%workbook%is%a%product%of%the%Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program,%one%of%twenty%Clean$Cities$Implementation$Initiatives$to$Advance$Alternative$Fuel$Markets$grants%from%the%U.S.%Department%of%Energy.%In%partnership%with%Clean%Cities%G%Georgia,%Palmetto%State%Clean%Fuels%Coalition,%Alabama%Clean%Fuels%Coalition,%East%Tennessee%Clean%Fuels,%Middle%Tennessee%Clean%Fuels,%and%Clean%Fuels%of%West%Tennessee,%the%Center%for%Transportation%and%the%Environment%was%awarded%$580,900%from%the%U.S.%Department%of%Energy.%Figure%1%shows%Clean%Cities’%selections%for%implementation%initiatives%to%advance%alternative%fuel%markets.%%%%%%%%%%%%%%%%%%%%%%

Figure%1:%Clean%Cities%Initiatives%to%Advance%Alternative%Fuel%Markets%%%The%primary%objective%of%the%Southeast%Regional%Alternative%Fuels%Market%Initiatives%Program%is%to%target%and%offer%remedies%to%obstacles%to%alternative%fuel%vehicle%adoption%and%use.%The%program%focuses%on%a%fourGstate%region%that%includes%Alabama,%Georgia,%South%Carolina,%and%Tennessee,%and%it%is%a%collaborative%effort%between%the%following%partners:%

• Alabama%Clean%Fuels%Coalition%

• Center%for%Transportation%and%the%Environment%



• Clean%Cities%G%Georgia%

• Palmetto%State%Clean%Fuels%Coalition%

• East%Tennessee%Clean%Fuels%Coalition%

• Middle%Tennessee%Clean%Fuels%

• Clean%Fuels%of%West%Tennessee%

• Southern%Company%

• City%of%Atlanta%

The%workbook%is%organized%into%three%parts:%%

• Alternative%Fuels%Readiness%Workbook%Part%1:%Natural%Gas%Vehicles%and%Infrastructure%• Alternative%Fuels%Readiness%Workbook%Part%2:%Propane%Vehicles%and%Infrastructure%• Alternative%Fuels%Readiness%Workbook%Part%3:%Policy%

%The%purpose%of%Part%1%and%Part%2%of%the%workbook%is%to%provide%resources%and%tools%to%help%educate%fleets%about%natural%gas%and%propane%vehicles%and%to%introduce%common%issues%associated%AFV%implementation.%Each%part%of%the%workbook%includes%an%introduction%to%the%fuel%and%discusses%the%various%applications%appropriate%for%the%fuel.%There%are%also%sections%that%highlight%available%vehicles%and%discussions%regarding%vehicle%acquisition%and%fueling%infrastructure.%Information%is%included%regarding%various%incentives%and%programs%that%may%be%available%to%a%fleet,%focusing%specifically%on%the%fourGstate%region,%to%help%in%the%deployment%of%natural%gas%and/or%propane%vehicles.%There%are%also%case%studies%from%the%fourGstate%region%highlighting%fleets%that%have%successfully%deployed%alternative%fuel%as%part%of%their%daily%operations.%%Part%3%is%a%resource%for%policy%and%decisionGmakers%highlighting%policies%and%regulations%supporting%alternative%fuel%deployment,%with%a%particular%focus%on%policies%relevant%to%natural%gas%and%propane.%Part%3%includes%policies%that%are%in%place%in%the%fourGstate%region%as%well%as%those%in%place%throughout%the%United%States.%Part%3%also%includes%an%appendix%highlighting%policies%supporting%the%deployment%of%electric%vehicles%and/or%infrastructure.%The%intent%is%to%introduce%policy%and%decisionGmakers%to%supportive%policies%that%they%may%wish%to%consider%in%an%effort%to%support%alternative%fuel%related%activities%in%their%state.%%%In%addition%to%using%the%workbook%as%a%resource,%fleets%and%policyGmakers%are%encouraged%to%engage%with%their%local%Clean%Cities%Coalition%partners%in%their%efforts%to%deploy%alternative%fuels.%The%Clean%Cities%Program%is%sponsored%by%the%U.S.%Department%of%Energy%and%supports%public%and%private%partnerships%to%advance%the%nation’s%economic,%environmental,%and%energy%security%by%supporting%local%actions%to%reduce%petroleum%consumption%in%transportation.%There%are%nearly%100%coalitions%throughout%the%U.S.%The%coalitions%are%a%valuable%resource%and%are%available%to%help%fleets%and%consumers%find%answers%to%questions%regarding%alternative%fuel%vehicles.%%%Websites%for%each%of%the%fourGstate%region’s%Clean%Cities%Coalitions%are%as%follows:%%

Alabama%Clean%Fuels%Coalition:% % http://www.alabamacleanfuels.org/%Clean%Cities%G%Georgia:% % http://www.cleancitiesgeorgia.org%%Palmetto%State%Clean%Fuels%Coalition:% % http://www.palmettocleanfuels.org/%East%Tennessee%Clean%Fuels%Coalition:%% http://www.etcleanfuels.org%Middle%Tennessee%Clean%Fuels:% % http://middletncleanfuels.org/%Clean%Fuels%of%West%Tennessee:%%%%%%%%%%%%%%%%%%%%%%%http://cfwt.tn.org%%

Readers%are%also%encouraged%to%visit%the%U.S.%Department%of%Energy’s%Alternative%Fuel%Data%Center%(AFDC)%website%for%additional%information%regarding%AFVs.%Readers%can%access%the%AFDC%website%through%the%following%link:%%http://www.afdc.energy.gov/%



Key Terms%%Alternative%Fuel:%Defined%by%the%Energy%Policy%Act%(EPAct),%a%fuel%that%is%substantially%nonGpetroleum,%yields%substantial%energy%security%benefits,%and%offers%substantial%environmental%benefits;%fuels%can%include:%natural%gas,%liquefied%petroleum%gas%(propane),%coalGderived%liquid%fuels,%hydrogen,%E85,%electricity,%and%pure%biodiesel.%%Alternative%Fuel%Vehicle%(AFV):%A%dedicated,%flexible%fuel,%or%dualGfuel%vehicle%designed%to%operate%on%at%least%one%alternative%fuel.%%Autogas:%Alternative%fuel%consisting%of%at%least%90%%propane%along%with%smaller%amounts%of%other%gases%such%as%propylene,%butane,%and%butylene.%%%BiPFuel:%Describes%a%vehicle%with%two%separate%fueling%systems,%enabling%the%vehicle%to%run%on%one%fuel%or%the%other.%%%Compressed%Natural%Gas%(CNG):%Natural%gas%modified%by%mechanical%equipment%and%dispersed%at%high%presses,%typically%3,600%pounds%per%square%inch%gauge%(psig).%%Dedicated%Fuel:%A%type%of%alternative%fuel%vehicle%designed%to%run%only%on%one%type%of%fuel.%%DualPFuel:%These%vehicles%are%traditionally%limited%to%heavyGduty%applications,%have%fuel%systems%that%run%on%natural%gas,%and%use%diesel%fuel%for%ignition%assistance.%%Gasoline%Gallon%Equivalent%(GGE):%Equates%the%energy%content%of%any%motor%fuel,%including%alternative%fuels,%to%that%of%a%gallon%of%gasoline.%%Greenhouse%Gases%(GHG):%Gases%that%can%absorb%and%emit%infrared%radiation.%%Liquefied%Natural%Gas%(LNG):%LNG%is%produced%by%purifying%natural%gas%and%superGcooling%it%to%G260°F%to%turn%it%into%a%liquid.%%Liquefied%Petroleum%Gas%(LPG):%Another%name%for%propane;%LPG%is%a%domestically%produced,%cleanGburning,%lowGcost%alternative%transportation%fuel.%%Original%Equipment%Manufacturer%(OEM):%Company%that%first%creates%a%manufactured%product%available%for%resale.%In%this%case,%the%company%may%produce%AFVs%and%sell%them%directly%to%the%public.%%WellPtoPWheel:%A%type%of%lifeGcycle%assessment%used%for%vehicles%and%vehicle%fuels.%It%was%developed%to%consider%the%impact%of%alternative%fuels%and%new%vehicle%technologies.%%Key%Terms%are%words%or%group%of%words%that%appear%frequently%in%this%workbook.%This%section%is%used%as%a%reference%point%to%define%these%significant%words.%These%terms%were%defined%from%the%Alternative%Fuels%Data%Center%(www.afdc.energy.gov)%and%cumminsengines.com.%%% %



Section 2: About Natural Gas Natural%gas%first%became%available%as%a%transportation%fuel%in%the%1930s.%Advancements%in%engine%and%storage%technology,%more%stringent%emissions%standards,%and%lower%costs%have%led%to%an%increase%in%the%interest%in%and%the%viability%of%natural%gas%as%a%transportation%fuel.%Natural%gas%is%a%clean%burning,%domestically%produced,%and%widely%available%fuel.%Historically,%natural%gas%costs%less%per%gasoline%gallon%equivalent%(GGE)%compared%to%gasoline%and%diesel;%as%of%2014,%fleets%using%natural%gas%are%saving%around%$1.50%per%GGE.%%%Natural%gas%is%used%in%two%forms%in%vehicles—either%as%Compressed%Natural%Gas%(CNG)%or%as%Liquefied%Natural%Gas%(LNG).%%%

CNG%is%stored%onboard%vehicles%in%cylinders%at%a%pressure%of%3,000%–%3,600%pounds%per%square%inch.%Vehicles%fueled%by%CNG%achieve%a%similar%fuel%economy%to%conventional%gasolineGpowered%vehicles%on%GGE%basis.%A%GGE%equals%about%5.66%pounds%of%CNG.%CNG%is%appropriate%for%lightG,%mediumG,%and%heavyGduty%applications.%%%LNG%is%a%clear,%odorless%liquid%that%forms%when%natural%gas%is%cooled%to%%G259%degrees%Fahrenheit%through%a%process%called%liquefaction.%LNG%is%stored%onboard%vehicles%in%doubleGwalled,%vacuumGinsulated%pressure%vessels.%LNG%offers%greater%energy%content%by%volume%in%a%given%tank%compared%to%CNG.%A%GGE%equals%about%1.5%gallons%of%LNG.%LNG%is%appropriate%for%mediumG%and%heavyGduty%vehicles,%and%provides%greater%range%options%compared%to%CNG%because%of%the%greater%energy%content.1%

Natural Gas as an Alternative to Petroleum SeventyGone%percent%of%all%petroleum%used%in%the%U.S.%is%dedicated%to%transportation.2%In%March%2013,%the%U.S.%imported%52%%of%the%petroleum%consumed%nationally.3%In%contrast,%80%G90%%of%the%natural%gas%consumed%in%the%U.S.%comes%from%domestic%production.4%In%recent%years,%natural%gas%production%has%reached%its%highest%recorded%annual%total%since%1973.%This%production%increase%can%be%attributed%to%more%efficient,%costGeffective%drilling%techniques.%The%transportation%sector%accounts%for%less%than%one%percent%of%natural%gas%use%in%the%U.S.,%while%oil%and%petroleumGbased%fuels%account%for%93%%of%the%sector’s%fuel%consumption.5%%%The%worldwide%supply%of%petroleum%resources%are%estimated%at%1,350%billion%barrels,%while%natural%gas%resources%are%estimated%at%2,260%billion%barrels%(energy%equivalent%basis).%Predictions%with%current%utilization%rates%show%that%global%petroleum%resources%will%last%46%years,%while%natural%gas%resources%have%the%ability%to%last%for%more%than%120%years.6%Petroleum%availability%predictions%may%decrease%based%on%future%utilization%rates.%Reserves%of%natural%gas%are%expected%to%keep%prices%steady%through%at%least%2030,%and%this%price%is%expected%to%remain%significantly%lower%than%gasoline%or%diesel.7%%Figure%2%represents%the%total%number%of%crude%oil%and%petroleum%products%imported%to%the%U.S.%since%1985.%Even%with%a%slight%decrease%over%the%past%few%years,%the%U.S.%is%spending%nearly%$1%billion%a%day%on%imported%oil.%Instability%of%oil%producing%countries%leads%to%price%increases%for%gasoline%and%diesel,%

1%http://www.afdc.energy.gov/fuels/natural_gas_basics.html%%2%U.S.%Energy%Information%Administration.%Annual$Energy$Review,$September%2012.$3%http://www.pickensplan.com/news/2013/04/18/usGonGtrackGtoGspendG400GbillionGonGimportedGoilGinG2013/%4%America’s%Natural%Gas%Alliance.%Natural$Gas$Driving$Change%5%American%Clean%Skies%Foundation.%Driving$Natural$Gas$Report,$April%2013.%%6%America’s%Natural%Gas%Alliance.%Natural$Gas$Vehicle$Industry$Overview%7%www.ngvc.org/gov_policy/documents/cng_propane_11.27.13.pdf%%



which%negatively%impacts%the%U.S.%economy.%Shifting%to%U.S.%sources%of%energy%decreases%the%reliance%on%foreign%governments,%allowing%the%U.S.%to%effectively%manage%its%own%energy%policy.%%

%CNG%has%become%a%more%attractive%option%for%vehicle%fuel%due%to%the%rising%prices%of%petroleum.%In%April%2013,%there%was%approximately%a%$1.50%difference%in%the%GGE%as%shown%in%Figure%3.%With%diesel%and%gasoline%prices%expected%to%rise,%predictions%expect%natural%gas%to%cost%50%%less%than%these%fuels%by%2025.8%LNG%prices%are%not%as%well%advertised%as%CNG%prices%due%to%many%LNG%stations%being%privately%owned%and%operated.%%%As%the%percentage%of%natural%gas%vehicles%(NGVs)%in%the%vehicle%market%continues%to%grow,%there%will%be%less%spending%on%imported%oil%and%more%domestic%reinvestment%with%the%savings.%Natural%gas%contributes%approximately%four%million%jobs%and%more%than%$385%billion%to%our%nation’s%economy.9%%%

%%%

%%%%%%%%%%%%%

Figure%2:%U.S.%Imports%of%Crude%Oil%and%Petroleum%Products%Source:%U.S.%Energy%Information%Administration.%Petroleum$&$Other$Liquids.$

%

%%%%%%%%%%%

Figure%3:%U.S.%Average%Retail%Fuel%Prices%Source:%http://www.afdc.energy.gov/data/10326%%

8%http://www.anga.us/media/content/F7D1441AG09A5GD06AG9EC93BBE46772E12/files/transportation%20brochure.pdf%9%http://www.entregapipeline.com/theGimportanceGofGnaturalGgasGtoGtheGusGeconomy.php%%



While%the%number%of%available%passenger%vehicles,%trucks,%buses,%vans,%and%heavyGduty%NGVs%is%constantly%increasing,%the%U.S.%Department%of%Energy’s%Alternative%Fuel%Data%Center%(AFDC)%estimated%that%less%than%one%percent%of%the%U.S.%total%vehicle%population%in%2013%was%comprised%of%NGVs.%With%new%technology%and%support,%NGVs%offer%many%advantages%over%conventional%gasoline%or%diesel%vehicles.%%

%

Natural Gas Availability The%U.S.%is%well%positioned%to%provide%natural%gas%as%a%transportation%fuel.%Figure%4%shows%the%U.S.%natural%gas%pipeline%network%and%its%availability%for%states%to%produce%natural%gas%for%fuel.%According%to%the%U.S.%Energy%Information%Administration,%the%U.S.%has%more%than%210%natural%gas%pipeline%systems%and%305,000%miles%of%interstate%and%intrastate%transmission%pipelines.%There%are%more%than%1,400%compressor%stations%located%across%the%country%that%maintain%pressure%on%the%natural%gas%pipeline%network.%The%U.S.%also%has%more%than%11,000%delivery%points%and%5,000%receipt%points%for%natural%gas,%24%market%centers,%400%underground%storage%facilities,%49%locations%where%natural%gas%can%be%imported%and%exported,%and%1,400%interconnection%points%that%provide%for%the%transfer%of%natural%gas%throughout%the%U.S.10%

%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

%

Figure%4:%U.S.%Natural%Gas%Pipelines%Source:%http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/ngpipelines_map.html%%

%In%his%2012%State%of%the%Union%Address,%President%Obama%stated,%“…the%development%of%natural%gas%will%create%jobs%and%power%trucks%and%factories%that%are%cleaner%and%cheaper,%proving%that%we%don’t%have%to%choose%between%our%environment%and%our%economy.”%The%U.S.%is%an%upGandGcoming%leader%in%the%NGV%market.%Although%the%U.S.%currently%ranks%only%twelfth%globally%in%number%of%natural%gasG

10%http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/index.html%%



fueled%vehicles,%between%1999%and%2009%the%consumption%of%natural%gas%in%the%transportation%field%tripled.11%NGV%sales%are%expected%to%grow%10%%per%year%through%2019.12%

%The%southeast%region%is%also%well%positioned%to%access%natural%gas%through%the%pipeline%network.%Figure%5%highlights%the%pipelines%serving%the%fourGstate%region%of%Alabama,%Georgia,%South%Carolina%and%Tennessee.%Multiple%interstate%natural%gas%pipelines%run%through%the%area.%With%NGV%demand%expected%to%increase%as%gasoline%and%diesel%prices%continue%to%rise,%the%Southeast%has%the%ability%to%adequately%support%CNG/LNG%for%fleets%and%consumer%vehicles%alike.%

%

%%%%

!

%

%

%

%

%

%

%

%

%

%Figure%5:%Southeast%Natural%Gas%Pipelines!

Source:%http://www.eia.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/southeast.html%!

As%the%demand%for%NGVs%grows,%the%economy%will%shift%and%new%job%sectors%will%develop.%The%development%of%the%NGV%market%will%have%an%economic%impact%by%creating%the%following%types%of%jobs:%

• NGV%and%parts%manufacturing,%sales,%and%service%

• Infrastructure%manufacturing,%sales,%installation,%and%service%

11%http://www.rff.org/Publications/Resources/Pages/181GNaturalGGasGVehicles.aspx%%12%http://www.usatoday.com/story/money/cars/2013/03/09/naturalGgasGvehiclesGinroads/1967881/%%



Environmental Benefits Natural%gas%is%a%lowGcarbon,%clean%burning%fuel.%Natural%gas%can%offer%life%cycle%greenhouse%gas%emissions%benefits%over%conventional%fuels%when%used%as%a%vehicle%fuel.%Although%recent%efforts%by%the%U.S.%Environmental%Protection%Agency%(EPA)%have%narrowed%the%gap%in%emissions%for%all%types%of%combustion%engines,%NGVs%continue%to%offer%emissions%benefits.%This%is%especially%true%when%considering%many%conventional%vehicles%on%the%road%today%are%older%models.%While%all%types%of%NGVs%offer%at%least%some%emissions%benefits,%the%biggest%payback%on%natural%gas%fuel%is%seen%in%heavyGduty%vehicles.%%%%%According%to%Argonne%National%Laboratory,%natural%gas%emits%approximately%6%–%11Da%lower%levels%of%GHGs%than%gasoline%throughout%the%fuel%life%cycle.%When%comparing%the%life%cycle%emissions%of%the%two%types%of%natural%gas,%CNG%and%LNG%are%nearly%identical.13%%Evaporative%and%fueling%emissions%account%for%50%%of%a%vehicle’s%total%emissions.%CNG%vehicles%produce%little%or%no%evaporative%emissions%during%fueling%or%use.14%When%in%use,%NGVs%produce%lower%amounts%of%carbon%dioxide%per%mile%traveled.%Therefore,%NGVs%are%cleaner%for%the%environment%than%conventional%gasoline%or%diesel%vehicles.%%

%Natural%gas%has%been%defined%as%a%safe%transportation%fuel%by%the%EPA%due%to%reduced%flammability%relative%to%petroleum,%presence%of%onboard%gas%detectors,%existence%of%tank%safety%valves,%and%periodic%DOT%tank%inspections.15%Both%CNG%and%LNG%are%lighter%than%air,%therefore%allowing%them%to%disperse%rapidly%in%the%event%of%a%release.%This%reduces%ignition%risks%relative%to%gasoline.%In%the%event%of%a%release,%there%would%be%no%harm%to%land%or%water%because%natural%gas%is%nonGtoxic.%%

%

13%http://www.afdc.energy.gov/vehicles/natural_gas_emissions.html%14%http://www.cngnow.com/whatGisGcng/clean/Pages/information.aspx%15%ANGA%Overview%PDF%



Section 3: Natural Gas Applications There%are%a%variety%of%applications%that%can%successfully%use%natural%gas%as%a%transportation%fuel.%HighGmileage,%centrally%fueled%fleets%operating%within%a%limited%service%area%are%wellGsuited%applications%for%CNG,%including%taxi,%transit,%and%refuse%fleets.%Vehicles%travelling%longer%distances%may%find%LNG%to%be%a%more%suitable%option.%There%are%a%number%of%fleets%in%the%fourGstate%region%that%have%successfully%incorporated%NGVs%into%their%daily%operations.%Examples%of%fleets%operating%in%the%fourGstate%region%using%CNG%and%LNG%include:%%

UPS%–%Since%2000,%UPS’s%alternative%fuel%fleet%has%traveled%more%than%296%million%miles,%and%their%natural%gas%fleet%has%grown%to%include%more%than%1,000%package%delivery%vehicles.%In%2013,%UPS%announced%they%are%expanding%their%natural%gas%operations%to%include%Liquefied%Natural%Gas.%By%the%end%of%2014,%UPS%plans%to%have%a%LNG%fleet%consisting%of%1,000%tractors%operating%out%of%Florida,%Illinois,%Indiana,%Mississippi,%Missouri,%Ohio,%Pennsylvania,%Tennessee,%and%Texas.%UPS%has%set%a%goal%to%reach%one%billion%miles%driven%by%their%alternative%fuel%and%advanced%technology%fleet%by%2017.16%%AT&T%–%In%October%2013,%AT&T%reached%the%halfway%mark%of%its%commitment%to%invest%$565%million%to%deploy%15,000%alternative%fuel%vehicles%over%the%course%of%a%10Gyear%period%ending%in%2018.%There%are%currently%over%7,500%AFVs%operating%in%44%states%across%the%nation%and%southeast%region.%The%company%plans%to%add%up%to%8,000%CNG%vehicles%to%its%fleet%by%first%quarter%2014,%which%is%the%largest%U.S.%corporate%commitment%to%CNG%to%date.%AT&T%has%since%announced%that%its%deployment%of%AFVs%enabled%the%company%to%avoid%the%purchase%of%7.7%million%gallons%of%gasoline%from%the%beginning%of%the%program%through%the%end%of%2012.17%%Large,%national%fleets%are%not%the%only%fleets%that%have%made%an%investment%in%natural%gas%vehicles%operating%within%the%fourGstate%region.%A%number%of%local%fleets%throughout%the%four%states%have%deployed%natural%gas%vehicles%within%their%fleet%operations.%Examples%of%some%of%the%successful%deployments%are%included%below:%%City%of%Rock%Hill,%South%Carolina%–%The%city%began%investing%in%natural%gas%in%1995%when%it%built%a%CNG%fueling%station%and%converted%dump%trucks%to%run%on%CNG.%Its%CNG%fleet%has%since%grown%to%include%pickup%trucks,%sanitation%trucks,%additional%dump%trucks,%and%two%Chevrolet%Impalas.%Rock%Hill%Performance%Manager%Marty%Burr%estimates%yearly%fuel%savings%of%$32,500%will%pay%for%the%additional%cost%of%the%CNG%refuse%trucks%in%about%14%months.%The%city%plans%to%purchase%two%to%three%CNG%vehicles%per%year.18%%City%of%Trussville,%Alabama%–%Trussville’s%40%CNGGfueled%vehicles,%which%range%from%patrol%cars%to%dump%trucks,%saved%the%city%around%$100,000%in%fuel%costs%in%2013.%Mayor%Gene%Melton%expects%that%number%to%double%in%2014%as%he%plans%to%convert%more%fleet%vehicles%to%run%on%natural%gas.%On%March%20,%2013%Trussville%unveiled%a%new%publicly%accessible%CNG%fuel%station,%which%became%the%fifth%public%CNG%station%to%open%in%the%state%of%Alabama.19%%%%BirminghamPJefferson%County%Transit%Authority%(BJCTA),%Birmingham,%Alabama%–%In%August%2013,%BJCTA%unveiled%its%first%set%of%compressed%natural%gas%buses.%These%30%buses%are%expected%

16%http://www.pressroom.ups.com/Fact+Sheets/ci.UPS+Alternative+Fuel.print%%17%http://www.environmentalleader.com/2013/10/10/attGreachesGhalfwayGmarkGinGalternativeGfuelGvehiclesGgoal/%%18%http://www.governmentGfleet.com/channel/greenGfleet/news/story/2013/09/rockGhillGtoGexpandGcngGstationGincreaseGitsGcngGfleet.aspx?prestitial=1%%19%http://www.greenfleetmagazine.com/news/51470/newGcngGfuelingGstationGopenedGinGtrussvilleGala%%



to%save%BJCTA%about%10%%on%fuelGrelated%costs%in%addition%to%a%federal%incentive%of%50%cents%for%each%gallon%of%compressed%natural%gas%used.20%%Morgan%County%Schools,%Tennessee%–%In%2012,%Morgan%County%became%the%first%school%system%in%the%state%of%Tennessee%to%transport%students%in%natural%gas%and%propane%school%buses.%With%the%help%of%the%East%Tennessee%Clean%Fuels%Coalition,%Morgan%County%began%their%alternative%fuel%fleet%with%three%buses%that%immediately%reduced%particulate%matter%exposure%by%90%.%Bus%drivers,%students,%and%parents%alike%have%been%pleased%with%the%new%buses,%and%the%school%system%plans%to%use%these%current%models%for%at%least%the%next%15%years.21%

%%Section%9%of%this%workbook%includes%a%number%of%case%studies%highlighting%fleets%deploying%NGVs%%or%installing%natural%gas%infrastructure.%The%section%is%designed%to%serve%as%a%resource%describing%the%experiences%of%other%fleets%and%provide%examples%of%fleet%managers%who%have%successfully%integrated%NGVs%into%their%fleets.%%

20%http://blog.al.com/spotnews/2013/08/bjcta_marks_arrival_of_new_com.html%%21%http://www.wate.com/story/20062203/morganGcountyGunveilsGschoolGbusesGfueledGbyGnaturalGgasGandGpropane%%

Alternative%Fuels%Readiness%Workbook%%


Section 4: Natural Gas Vehicles This%section%provides%a%brief%introduction%to%natural%gas%vehicles.%The%industry%is%everGchanging%and%new%makes%and%models%of%vehicles%available%with%a%natural%gas%option%are%regularly%announced.%The%U.S.%Department%of%Energy’s%Alternative%Fuels%Data%Center%(AFDC)%estimates%that%there%are%around%112,000%natural%gas%vehicles%on%the%road%today%in%the%U.S.22%Acquisition%of%NGVs%can%occur%in%three%ways:%%

• From%the%assembly%line%by%the%original%equipment%manufacturer%(OEM)%

• As%a%conversion%option%from%the%OEM%or%upfit%from%qualified%vehicle%modifier%

• As%an%afterGmarket%conversion%

There%are%three%types%of%natural%gas%vehicles:%!%Dedicated%Natural%Gas%Vehicles%A%dedicated%vehicle%is%designed%to%run%only%on%CNG%or%LNG.%Examples%of%dedicated%CNG%vehicles%include%the%Honda%Civic%GX%(from%the%OEM);%the%GMC%Savana%2500/3500%van%(available%as%a%natural%gas%option%from%the%OEM);%and%the%AltechGEco%Corporation’s%conversion%system%for%model%year%2010%Ford%E350%Cutaway%G%5.4L%engine%(afterGmarket%conversion).%%BiPFuel%Natural%Gas%Vehicles%BiGfuel%systems%are%designed%with%two%separate%fueling%systems%that%enable%them%to%run%on%natural%gas%and%gasoline.%These%vehicles%run%on%CNG%or%LNG%until%the%tank%is%depleted%when%it%then%automatically%switches%to%run%on%gasoline.%An%example%of%a%biGfuel%system%vehicle%is%the%Dodge%Ram%2500%CNG%(available%as%a%natural%gas%option%from%the%OEM).%%%DualPfuel%Natural%Gas%Vehicles%Traditionally%limited%to%heavyGduty%applications,%dualGfuel%vehicles%have%a%fuel%system%that%can%run%on%either%diesel%or%a%combination%of%diesel%and%natural%gas.23%For%example,%American%Power%Group%offers%an%engine%conversion%for%outside%useful%life%for%the%Cummins%14.9%and%10.8L%engines%for%model%years%2004%–%2009.%

%

Current Natural Gas Vehicle Availability There%are%a%number%of%natural%gas%vehicles%on%the%market%today.%As%discussed%above,%vehicles%and%engines%are%available%directly%from%the%manufacturer%or%can%be%converted%to%run%on%natural%gas.%%%

22%http://www.afdc.energy.gov/vehicles/natural_gas.html%%23%http://cumminsengines.com/dualGfuel%%

Learn%More%About%Natural%Gas%Vehicle%Availability%

There%are%many%online%information%sources%that%provide%the%most%recent%information%on%the%latest%technologies,%such%as%the%Alternative%Fuels%Data%Center.%Readers%are%encouraged%to%visit%the%link%below%for%the%most%upGtoGdate%information%on%available%lightGduty%and%heavyGduty%vehicles,%and%lightGduty%and%heavyGduty%engines:%

http://www.afdc.energy.gov/vehicles/natural_gas_availability.html%%For%natural%gas%vehicle%conversion%information,%readers%are%encouraged%to%visit%the%Alternative%Fuels%Data%Center%and%the%NGVAmerica%website:%

http://www.afdc.energy.gov/vehicles/natural_gas_conversions.html%http://www.ngvamerica.org/about_ngv/available_ngv.html%



%Another%resource%readers%may%find%useful%is%the%Clean$Cities$2014$Vehicle$Buyer’s$Guide%published%by%the%U.S.%Department%of%Energy.%The%guide%includes%a%comprehensive%list%of%2014%lightGduty%alternative%fuel%and%advanced%vehicles.%The%guide%features%modelGspecific%information%on%vehicle%specs,%manufacturer%suggested%retail%price,%fuel%economy,%energy%impact,%and%emissions.%The%Clean$Cities$2014$Vehicle$Buyer’s$Guide%is%available%for%download%from%the%AFDC%website: %%http://www.afdc.energy.gov/uploads/publication/60448.pdf%%

Vehicle Availability from Manufacturers Table%1%below%highlights%lightGduty%vehicles%available%directly%from%the%manufacturer%either%as%an%NGV%or%with%a%natural%gas%vehicle%option%in%model%years%2012,%2013,%and%2014.%%

Table%1:%NGV%LightPDuty%Vehicle%Availability%(MY%2012/2013/2014)%%%%%%%

$$$$

$Source:$AFDC$LightSDuty$Vehicle$Search$(http://www.afdc.energy.gov/vehicles/search/light)$

$

There%are%also%vehicle%and%engine%options%available%for%heavyGduty%vehicle%applications.%Applications%with%available%vehicle%and%engine%options%include%school%buses,%transit%vehicles,%refuse%haulers,%street%sweepers,%tractors,%vans,%and%vocational%vehicles.%Tables%2%G%8%below%highlight%natural%gas%vehicles%and%engines%currently%available%in%the%heavyGduty%market%by%application.%

%Table%2:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%School%Bus%Applications%%$$$$$$$Source:$AFDC$HeavySDuty$Vehicle$and$Engine$Search$(http://www.afdc.energy.gov/vehicles/search/heavy/$)$

% %

Natural%Gas%Vehicle% Model%Year%Ford%Transit%Connect% 2012%Vehicle%Production%Group%–%MVG1% 2012%GMC%Savana%2500/3500% 2012,%2013,%2014%Chevrolet%Express%2500/3500% 2012,%2013,%2014%Honda%Civic% 2012,%2013,%2014%GMC%Terrain% 2013%Chevrolet%Equinox% 2013%Ford%FG150% 2014%

Vehicles% Fuel%Blue%Bird%Corp%All%American%Rear%Engine% CNG%Thomas%Built%Buses%SafGT%Liner%HDX%CNG% CNG%

Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%



Table%3:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Transit%Applications%Shuttle%Bus%Vehicles% Fuel%Champion%Bus%Inc.%CTS%–%Front%Engine% CNG%Goshen%Coach%–%GCII/GGForce% CNG%StarTrans%–%President% CNG%StarTrans%–%Senator% CNG%Turtle%Top%–%Odyssey% CNG%Turtle%Top%–%Odyssey%XL% CNG%Turtle%Top%–%Odyssey%XLT% CNG%Turtle%Top%–%Terra%Transport% CNG%Turtle%Top%–%Van%Terra% CNG%Shuttle%Bus%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%Ford%Motor%Co.%5.4L%VG8% CNG%Ford%Motor%Co.%6.8L%VG10% CNG%General%Motors%–%6.0L%VG8% CNG%Transit%Bus%Vehicles% Fuel%ElDorado%National%–%Axess% CNG,%LNG%ElDorado%National%–%EGZ%Rider%II%BRT% CNG,%LNG%ElDorado%National%–%XHF% CNG,%LNG%Gillig%Corp.%–%DieselGElectric%Hybrid%Bus%and%CNG%Bus% CNG%Motor%Coach%Industries%–%D4500%CT%Hybrid%Commuter%Coach% CNG%New%Flyer%–%Xcelsior% CNG,%LNG%North%American%Bus%Industries%–%31LFW/35LFW/40LFW% CNG%North%American%Bus%Industries%–%42BRT% CNG,%LNG%North%American%Bus%Industries%–%60BRT% CNG,%LNG%North%American%Bus%Industries%–%CompoBus% CNG%Transit%Bus%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%Trolley% Fuel%New%Flyer%G%Xcelsior% CNG,%LNG%Trolley%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%

Source:$AFDC$HeavySDuty$Vehicle$and$Engine$Search$(http://www.afdc.energy.gov/vehicles/search/heavy/)$$

%Table%4:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Refuse%Hauler%Applications%

Refuse%Hauler%Vehicles% Fuel%Heil%Environmental%–%DuraPack%Python% CNG%Heil%Environmental%–%Front%Loader% CNG%Heil%Environmental%–%RapidRail% CNG%Heil%Environmental%–%Rear%Loader% CNG%Heil%Environmental%–%RollGOff%Hoist% CNG%Mack%Trucks%–%LEU%TerraPro%Low%Entry% CNG,%LNG%Mack%Trucks%–%MRU%TerraPro%Cabover% CNG,%LNG%McNeilus%–%Front%Load%(Contender,%Atlantic,%LowGProfie)% CNG%McNeilus%–%Rear%Load%(Std,%HD,%XC,%Tag,%MS,%MetroGPak)% CNG%McNeilus%–%Side%Loader%(ZR,%AutoReach)% CNG%Peterbilt%Motors%–%320%G% CNG,%LNG%Refuse%Hauler%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%

Source:$AFDC$HeavySDuty$Vehicle$and$Engine$Search$(http://www.afdc.energy.gov/vehicles/search/heavy/)$



$

Table%5:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Street%Sweeper%Applications%Street%Sweeper%Vehicles% Fuel%Elgin%Sweeper%Company%–%Broom%Bear/Crosswind/Eagle/Pelican% CNG,%LNG%TYMCO%–%600% CNG%Street%Sweeper%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%General%Motors%–%3.0L%% CNG%General%Motors%–%6.0L%VG8% CNG%KEM%–%5.7L% CNG%


%Table%6:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Tractor%Applications%

Tractor%Vehicles% Fuel%Capacity%Trucks%–%TJ9000% CNG,%LNG%Cargotec%–%Ottawa%4x2% CNG,%LNG%Freightliner%–%Business%Class%M2%112% CNG,%LNG%Freightliner%–%Cascadia%113%NG% CNG,%LNG%Kenworth%–%T440%Tractor% CNG,%LNG%Kenworth%–%T470%Tractor% CNG,%LNG%Kenworth%–%T660%Tractor% CNG,%LNG%Kenworth%–%T800%Short%Hood% CNG,%LNG%Kenworth%–%T800%Tractor% LNG%Peterbilt%Motors%G%365% CNG,%LNG%Peterbilt%Motors%G%382% CNG,%LNG%Peterbilt%Motors%G%384% CNG,%LNG%Peterbilt%Motors%–%367/386/388% LNG%Volvo%–%VNL%Daycab% CNG,%LNG%Volvo%–%VNM%Daycab%% CNG%Tractor%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%Cummins%Westport%–%ISX12%G% CNG,%LNG%Volvo%–%D12GLNG% LNG%Westport%Innovations%–%GX% LNG%

Source:$AFDC$HeavySDuty$Vehicle$and$Engine$Search$(http://www.afdc.energy.gov/vehicles/search/heavy/)$$

Table%7:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Van%Applications%Van%Vehicles% Fuel%Ford%Motor%Co.%–%EGSeries%Cargo%Van/Wagon% CNG%Ford%Motor%Co.%–%Transit%Connect% CNG%General%Motors%–%Express/Savana%cargo%van% CNG%Van%Engines% Fuel%Ford%Motor%Co.%–%2.0L%IG4% CNG%Ford%Motor%Co.%–%5.4L%VG8% CNG%Ford%Motor%Co.%–%6.8L%VG10% CNG%General%Motors%–%6.0L%VG8% CNG%

Source:$AFDC$HeavySDuty$Vehicle$and$Engine$Search$(http://www.afdc.energy.gov/vehicles/search/heavy/)$$ $



Table%8:%NGV%HeavyPDuty%Vehicle%and%Engine%Availability%–%Vocational%Truck%Applications%Vocational%Truck%Vehicles% Fuel%Ford%Motor%Co.%–%EGSeries%Cutaway%and%Stripped%Chassis% CNG%Freightliner%–%114SD% CNG,%LNG%Greenkraft%–%1061% CNG,%LNG%Kenworth%–%W900S% CNG,%LNG%McNeilus%–%CNG%Cement%Mixer% CNG%Vocational%Truck%Engines% Fuel%Cummins%Westport%–%ISL%G%8.9L% CNG,%LNG%Cummins%Westport%–%ISX12%G% CNG,%LNG%Ford%Motor%Co.%–%5.4L%VG8% CNG%Ford%Motor%Co.%6.8L%VG10% CNG%General%Motors%–%3.0L% CNG%General%Motors%–%6.0L%VG8% CNG%KEM%–%5.7L% CNG%


Conversion Availability In%addition%to%the%options%noted%above%from%vehicle%and%engine%manufacturers,%vehicles%may%also%be%converted%to%run%on%natural%gas.%Converting%a%vehicle%involves%modifying%the%vehicle%or%engine%to%run%on%a%fuel%other%than%the%one%for%which%the%vehicle%or%engine%was%originally%manufactured.%These%vehicles%and%engines%can%be%converted%to%either%dedicated%or%biGfuel%systems.%For%biGfuel%configurations,%flipping%a%switch%to%change%tanks%typically%accesses%the%desired%fuel.24%

%While%retrofits/conversions%are%available%for%many%lightG%and%mediumGduty%vehicles%as%well%as%some%heavyGduty%vehicles,%they%are%not%available%for%all%vehicles,%models,%engines,%or%platforms.%Currently%approved%retrofit%systems%are%available%for%selected%vehicles%from%the%following%lightGduty%OEMs:%%

Chrysler%%%%%%%%%%%Ford%%%%%%%%%%General%Motors% %% %%% % %

In%addition,%retrofit/repower%systems%are%available%for%selected%engines%manufactured%by%the%following:%%

Caterpillar%%%%%%%%%%Mack%%%%%%%%%%Cummins%%%%%%%%%%Navistar%%%%%%%%%%Detroit%Diesel%%%%%%%%%%Volvo%

24%http://www.afdc.energy.gov/vehicles/conversions_basics.html%%

Learn%More%About%Natural%Gas%Vehicle%and%Engine%Conversions%

Readers%are%encouraged%to%visit%the%Alternative%Fuel%Data%Center%link%below%for%upGtoGdate%information%on%lightGduty%and%heavyGduty%vehicles,%and%engine%conversions:%%

http://www.afdc.energy.gov/vehicles/natural_gas_conversions.html%%The%U.S.%Environmental%Protection%Agency%maintains%a%list%of%certified%alternative%fuel%conversions%systems.%The%list%is%available%for%download%from%EPA’s%website.%Access%the%“Alternative%Fuel%Conversion”%page%from%the%link%below%and%scroll%down%to%the%“EPA%–Compliant%Conversion%Systems”%and%click%on%“Certified%Clean%Alternative%Fuel%Conversion%Systems”%to%download%the%spreadsheet.%%%

http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm#2%



Table%9:%Companies%Offering%Conversion%Systems%Company% Website% Headquarters%

AGA%systems/Autogas%America% autogasamerica.com% Utah%AltechGEco% altecheco.com%% North%Carolina%American%Power%Group,%Inc.% americanpowergroupinc.com% Iowa%Clean%Air%Power,%Inc.% cleanairpower.com% California%Diesel2Gas,%Inc% d2ginc.com% Florida%FYDAEnergySolutions% fydaenergy% Pennsylvania%Go%Natural%CNG% gonaturalcng.com% Utah%Greenkraft%Inc% greenkraftinc.com% California%IMPCO%Automotive% impcoautomotive.com% Indiana%Landi%Renzo%USA/Baytech% landiusa.com% California%MGtec%Solutions% mtechsolutionsinc.com% North%Carolina%NatGasCar% natgascar.com% Ohio%NGV%Motori% ngvus.com% Virginia%Westport/BAF% wingpowersystem.com% Michigan%Wise%Gas,%Inc.% wisegasinc.com% Florida%

Source:$http://www.ngvamerica.org/about_ngv/documents/availablevehiclesandconversions_130920_final.pdf$$

Importance of Certified Conversions and Installation by Qualified Technicians Fleets%should%be%aware%of%two%issues%when%considering%converting%vehicles%in%their%fleet%to%operate%on%natural%gas:%%

1. The%ability%of%the%natural%gas%system%to%meet%federal%emission%requirements%2. The%proper%installation%of%the%natural%gas%system%to%ensure%safe,%reliable%performance%

Changing%the%configuration%of%a%vehicle%has%the%potential%to%violate%section%203(a)(3)%of%the%Clean%Air%Act.%To%ensure%that%conversions%to%alternative%fuels%do%not%violate%the%antiGtampering%provisions%of%the%Clean%Air%Act,%the%U.S.%Environmental%Protection%Agency%(EPA)%has%established%protocols%through%which%manufacturers%offering%conversion%kits%can%certify%their%products%to%ensure%they%meet%applicable%emission%standards,%and%thus%are%exempt%from%the%tampering%prohibition%for%that%system.%In%some%instances,%EPA%allows%the%California%Air%Resource%Board%(CARB)%to%certify%aftermarket%conversions.%While%these%requirements%are%in%place,%there%are%nonGEPA/CARB%certified%systems%available%in%the%market%that%violate%federal%laws%and%fleets%are%advised%to%avoid%using%these%nonGapproved%systems.%%Once%an%appropriate%certified%or%approved%system%has%been%identified%for%a%fleet’s%vehicle(s)%and%model%year(s),%a%fleet%should%work%with%the%manufacturer%of%the%system%to%identify%an%authorized%installer%for%their%equipment.%These%authorized%installers%should%be%knowledgeable%of%all%the%certifications%and%tampering%exemptions,%as%they%are%fully%accountable%for%the%integrity%of%the%conversion%system%components%and%must%ensure%that%the%system%meets%required%emissions%

Learn%More%About%Natural%Gas%Vehicle%and%Engine%Conversion%Certification%

For%more%detailed%information%on%conversion%certification%is%available%on%the%Alternative%Fuels%Data%Center’s%website:%

http://www.afdc.energy.gov/vehicles/conversions_regulations.html#compliance%

%Readers%may%also%visit%EPA’s%Alternative%Fuel%Conversion%website%for%additional%information:%

%http://www.epa.gov/oms/consumer/fuels/altfuels/

altfuels.htm%%



standards.%They%will%also%follow%NFPA52%guidance%addressing%safe%and%proper%installation%of%all%system%components.%

Warranty Implications of Conversions Those%considering%vehicle%and%engine%conversions%should%investigate%warranty%implications%in%advance.%Liability%for%the%warranty%following%vehicle%conversions%may%transfer%from%the%OEM%to%the%conversion%manufacturer,%although%the%warranty%for%unaffected%vehicle%or%engine%parts%will%likely%still%fall%on%the%OEM.%Warranty%disputes%may%occur%if%roles%are%not%decided%upon%prior%to%the%conversion%occurring.25%%%

25%http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm%%



Section 5: Acquiring Natural Gas Vehicles for a Fleet Traditionally,%most%fleets%acquiring%natural%gas%vehicles%have%purchased%the%vehicle%or%the%conversion%system.%More%recently,%some%companies%have%offered%lease%options%to%their%fleet%customers.%This%section%provides%information%on%several%companies%that%offer%alternative%fuel%lease%options%to%their%customers.%This%section%also%provides%information%on%procurement%processes%for%public%fleets%as%well%as%incentives%and%other%financial%programs%that%may%be%available%to%fleets%to%help%offset%the%upfront%cost%of%alternative%fuel%vehicles%or%help%lessen%the%burden%to%fleets.%The%section%also%introduces%some%maintenance%considerations%for%fleets%acquiring%alternative%fuel%vehicles,%and%finally,%introduces%tools%available%to%help%fleets%assess%the%costs%and%return%on%investment%associated%with%alternative%fuel%vehicles.%

Availability of Vehicles Through Lease Agreements GE%Capital,%Penske%Truck%Leasing,%and%Ryder%System,%Inc.%are%three%companies%that%assist%fleets%with%leasing%alternative%fuel%vehicles.%%Each%of%the%companies%works%with%fleet%managers%to%make%sure%it%is%feasible%for%the%fleet%to%consider%alternative%fuel%vehicles,%and%to%show%where%the%fleet%will%be%spending%money,%in%order%to%save%it.%%GE%Capital,%Penske%Truck%Leasing,%and%Ryder%System,%Inc.%will%work%with%customers%who%are%fleet%owners%to%determine%whether%leasing%alternatively%fueled%vehicles%is%the%right%choice.%%%

Public Sector Fleet Procurement of Natural Gas Vehicles and Purchase Considerations State%government%entities%are%typically%required%to%purchase%vehicles%through%a%procurement%process%in%which%eligible%vehicles%are%included%on%an%approved%bid%list%or%state%contract.%Cities%and%county%governments%are%often%allowed%but%not%required%to%purchase%vehicles%off%the%state%contract.%If%a%vehicle%is%included,%this%streamlines%the%process%for%the%state%and%other%governmental%entity%will%be%able%to%acquire%that%particular%vehicle.%Processes%vary%by%state%as%do%the%state%departments%that%administer%the%purchasing.%If%you%represent%a%public%sector%fleet%and%are%unsure%of%the%options%for%purchasing%alternative%fuel%vehicles%through%procurement%processes,%please%contact%your%local%Clean%Cities%Coalition%for%assistance.%%Each%state%in%the%fourGstate%region%also%has%policies%in%place%to%encourage%state%fleets%to%deploy%alternative%fuel%vehicles.%While%not%all%the%policies%are%inclusive%of%NGVs,%they%recognize%the%benefits%of%various%alternative%fuels.%The%following%is%a%list%of%policies%by%state:%

• Alabama%%FuelGEfficient%Green%Fleet%Policy%

• Georgia%Office%of%Planning%and%Budget%Policy%Memorandum%No.%10%Rev.%8%

• Tennessee%Alternative%Fuel%and%Fuel%Efficient%Vehicle%Acquisition%and%Use%Requirements%

• South%Carolina%State%Agency%Alternative%Fuel%Use%Requirement%

For%more%information%on%these%state%policies,%see%Section%7%of%this%workbook.%

Natural Gas Vehicle Costs There%are%upfront%costs%associated%with%the%incremental%cost%or%conversion%of%vehicles%to%natural%gas%

Example%of%State%Procurement%In%Georgia,%the%State%Purchasing%Division%of%the%Department%of%Administrative%Services%is%responsible%for%developing%the%statewide%contracts%from%which%all%state%agencies%must%acquire%motor%vehicles.%The%list%of%vehicles%released%on%February%26,%2014%included%several%alternative%fuel%vehicle%options,%including%seven%compressed%natural%gas%vehicles.%These%are%the%Chevy%Tahoe,%Chevy%1500%Silverado,%Chevy%Express,%Chevy%Express%cargo%van,%Ford%Transit%Connect,%Ford%FG250,%and%Ford%FG350.%%



that%are%generally%offset%with%lower%fuel%costs.%For%heavyGduty%vehicle%vehicles,%incremental%costs%are%typically%around%$20,000%to%$30,000,%while%the%incremental%cost%for%lightGduty%vehicles%is%generally%between%$7,000%to%$15,000.%Conversion%costs%vary%by%vehicle%type%as%well.%For%heavyGduty%vehicles,%conversion%costs%can%range%from%$40,000%G%$60,000%while%lightGduty%vehicle%conversions%typically%range%from%$12,000%G%$18,000.%As%noted%earlier%in%this%section,%some%companies%are%beginning%to%offer%natural%gas%vehicles%through%lease%agreements%to%their%customers.%

Return on Investment While%the%upfront%expenses%may%be%an%initial%deterrent%to%deploying%natural%gas%vehicles%in%a%fleet,%these%expenses%can%be%leveraged%by%the%low%cost%of%fuel;%natural%gas%is%typically%sold%for%$1G$2%less%per%dieselGgallonGequivalent%than%diesel,%and%$1G$2%less%per%gasolineGgallonGequivalent%than%gasoline.26%Many%fleets%are%able%to%make%the%case%for%deploying%natural%gas%vehicles%in%their%fleets%based%on%the%return%on%investment%realized%from%lower%operating%costs,%particularly%associated%with%fuel%costs.%In%general,%highGmileage%fleets%receive%a%quicker%return%on%investment%than%lowGmileage%fleets.%The%Natural%Gas%Vehicle%Cost%Tools%and%Calculators%discussed%in%the%following%section%can%help%fleet%managers%and%others%assess%the%costs%associated%with%purchasing%alternative%fuel%vehicles,%the%estimated%fuel%savings,%as%well%as%other%inputs%related%to%fleet%operations.%As%with%any%fuel,%natural%gas%may%not%be%the%solution%for%every%fleet.%These%calculators%show,%however,%that%it%can%be%a%viable%option%for%a%lot%of%fleets%looking%to%feature%alternative%fuels.%%It%is%also%important%to%make%sure%individuals%responsible%for%making%purchasing%decisions%are%educated%about%the%potential%operational%savings%that%can%result%from%the%deployment%of%AFVs.%Vehicle%operation%and%fuel%use%data%may%be%maintained%by%a%single%entity%within%an%organization,%however,%it%is%not%unusual%for%separate%departments%to%be%responsible%for%the%various%data.%Often%times,%there%are%not%established%lines%of%communication%between%the%different%parties%responsible%for%

vehicle%operations,%fueling,%and%purchasing%decisions.%Without%a%clear%understanding%of%fleet%operations%and%costs,%alternative%fuel%vehicle%purchases%may%be%dismissed%simply%due%to%the%higher%upfront%costs.%

Low Interest Loan Programs Fleets%in%Alabama%and%South%Carolina%may%be%able%to%take%advantage%of%several%low%interest%loan%programs.%While%these%programs%do%not%offset%the%incremental%cost%associated%with%natural%gas%vehicles,%they%can%assist%a%fleet%in%managing%the%upfront%expenditure%incurred%as%a%result%of%purchasing%these%vehicles.%The%programs%available%in%Alabama%and%South%Carolina%are%highlighted%below.%%Alabama%Local%governments%and%public%colleges%and%universities%in%Alabama%have%access%to%the%Alabama$Local$Government$Energy$Loan$Program$(LGELP).%The%program%provides%lowGcost%revolving%loans%for%energy%efficiency%projects%including%conversion%of%vehicles%to%LNG/CNG%or%propane.%Fleets%can%borrow%up%to%$350,000%for%fleet%conversions.%For%more%

26%http://www.ngvc.org/pdfs/FAQs_Converting_to_NGVs.pdf%%

State%Loan%Programs%Help%Reduce%the%Burden%of%Costs%Associated%with%Natural%Gas%Vehicles%Within%the%4Pstate%region,%entities%in%Alabama%and%South%Carolina%may%be%able%to%take%advantage%of%low%interest%loan%programs.%%Local%governments%and%public%colleges%and%universities%in%Alabama%have%access%to%the%Alabama$Local$Government$Energy$Loan$Program$(LGELP).%%Private%companies%with%commercial,%industrial,%or%institutional%facilities%in%Alabama%are%eligible%for%financing%through%the%AlabamaSAVES™%program.%%Business%or%industry,%utilities,%and%government%agencies%in%South%Carolina%are%eligible%for%an%Energy$Efficiency$Revolving$Loan$(EERL).!%%State%and%local%governments,%school%districts,%and%nonGprofits%in%South%Carolina%are%eligible%for%ConserFund.$%In%South%Carolina,%governmental,%institutional,%and%commercial%and%industrial%properties%are%eligible%for%the%SouthCarolinaSaves%program%administered%by%Abundant%Power.%%



information,%visit:%http://www.adeca.alabama.gov/Divisions/energy/Pages/EnergyFinancing.aspx%%Private%companies%with%a%place%of%business%in%Alabama%that%are%duly%organized%and/or%qualified%to%do%business%in%the%state%and%that%own%and/or%operate%one%of%more%commercial,%industrial,%or%institutional%facility%in%Alabama%are%eligible%for%financing%through%the%AlabamaSAVES™%program.%AlabamaSAVES™%provides%financing%as%low%as%one%percent%fixed%rate%for%vehicle%efficiency%improvements%include%LNG/CNG%or%propane%fleet%conversions.%Loans%can%range%from%$50,000%G%$4,000,000.%For%more%information,%visit:%%%

http://www.alabamasaves.com/%%South%Carolina%Business%or%industry,%utilities,%and%government%agencies%in%South%Carolina%are%eligible%for%an%Energy$Efficiency$Revolving$Loan$(EERL).!Fleet%conversions%are%eligible%under%the%program%and%the%loan%can%be%used%for%fuel%kits%in%conversion%or%the%alternative%fuel%upfit%cost%in%a%new%vehicle.%It%has%a%low%interest%rate%that%varies%on%a%transactionGbyGtransaction%basis.%This%loan,%which%lasts%for%oneGandGaGhalf%times%the%expected%payback%of%the%loan,%is%evaluated%based%on%financial%stability%of%the%borrower%and%technical%merit%of%the%proposed%energy%plan%and%has%a%maximum%amount%of%$1%million.%For%more%information,%visit:%

%http://www.energy.sc.gov/incentives/eerl%%

%State%and%local%governments,%school%districts,%and%nonGprofits%in%South%Carolina%are%eligible%for%ConserFund.$The%South%Carolina%Energy%Office%administers%this%lowGinterest%loan%program%and%fleet%conversions%to%alternative%fuels%are%eligible%under%the%program.%%The%loan%can%be%used%for%fuel%kits%in%conversion%or%the%alternative%fuel%upfit%cost%in%a%new%vehicle.%The%loan%has%a%two%percent%interest%rate%for%up%to%$500,000%per%fiscal%year.%For%more%information,%visit:%

http://www.energy.sc.gov/incentives/conserfund%

%Governmental,%institutional,%and%commercial%and%industrial%properties%are%eligible%for%the%SouthCarolinaSaves%program%administered%by%Abundant%Power.%The%program%offers%low%cost%financing%at%a%below%market%rated%for%LNG/CNG%or%propane%fleet%conversions.%The%program's%funding%may%be%used%to%purchase%and%install%energy%efficiency%and%alternative%fueling%projects%(fleets%and%infrastructure)%that%achieve%a%10Gyear%payback%or%better.%%For%more%information,%contact%Greg%Montgomery%with%Abundant%Power:%%

[email protected]%

State Incentives Fleets%in%Georgia%may%be%able%to%take%advantage%of%an%Alternative$Fuel$Vehicle$Tax$Credit.%%An%income%tax%credit%for%10%%of%the%cost%to%purchase%or%lease%a%new%dedicated%natural%gas%vehicle%or%to%convert%a%vehicle%to%operate%solely%on%natural%gas%that%meets%the%standards%for%a%low%emission%vehicle,%up%to%$2,500%per%vehicle%is%available.%Beginning%July%1,%2015,%commercial%fleets%in%Georgia%will%have%access%to%an%income%tax%credit%for%the%purchase%of%new%mediumGduty%or%heavyGduty%alternative%fuel%vehicles%that%operate%

State%Incentives%to%Help%Offset%the%Incremental%Purchase%Cost%

Currently,%Georgia%is%the%only%state%in%the%4Pstate%region%with%an%incentive%program%to%help%offset%the%incremental%cost%of%natural%gas%vehicle%purchases.%%Georgia%offers%a%state%income%tax%credit%for%10%%(up%to%$2,500)%to%purchase,%lease,%or%convert%certain%alternative%fuel%vehicles.%%Beginning%July%1,%2015,%Georgia%will%offer%a%tax%credit%for%commercial%vehicles%operating%on%at%least%90%%alternative%fuel.%Eligible%mediumGduty%vehicles%may%qualify%for%a%credit%of%up%to%$12,000%and%eligible%heavyGduty%vehicles%may%qualify%for%a%credit%of%up%to%$20,000.%%See%Section%7%for%more%details.%



using%at%least%90%%alternative%fuel.%Eligible%mediumGduty%vehicles%may%qualify%for%a%credit%of%up%to%$12,000%and%eligible%heavyGduty%vehicles%may%qualify%for%a%credit%of%up%to%$20,000.%%Other Benefits Georgia%and%Tennessee%both%allow%alternative%fuel%vehicles%access%to%High%Occupancy%Vehicle%lanes.%Eligible%vehicles%may%use%the%lanes%regardless%of%the%number%of%passengers.%%In%addition%to%the%assistance%available%through%loan%programs%and%incentives,%there%are%other%programs%available%in%the%fourGstate%region%that%may%be%of%assistance%in%making%a%decision%to%deploy%natural%gas%vehicles.%Section%7%provides%highlights%on%programs%at%both%the%federal%and%state%level%which%may%be%of%interest%to%fleets.%

Natural Gas Vehicle Maintenance Considerations There%are%two%maintenanceGrelated%aspects%to%consider%when%deploying%alternative%fuels%into%a%fleet.%The%first%is%access%to%qualified%technicians%to%service%the%vehicle.%The%second%relates%to%modifications%to%existing%maintenance%facilities%for%fleets%that%conduct%onGsite%maintenance.%Determining%what%modifications%may%be%required%can%be%a%confusing%task%as%applicable%codes%and%regulations%are%often%subject%to%interpretation%and%a%fleet%may%receive%varying%opinions.%In%an%effort%to%help%educate%fleets%and%offer%guidance%for%navigating%through%the%requirements,%the%Clean%Vehicle%Education%Foundation%has%published%Guideline$for$Determining$the$Modifications$Required$for$Adding$Compressed$Natural$Gas$and$Liquefied$Natural$Gas$Vehicles$to$Existing$Maintenance$Facilities.%This%document,%available%through%the%Clean%Vehicle%Education%Foundation’s%website,%provides%an%overview%of%the%national%codes%applicable%to%vehicle%maintenance%facilities%and%discusses%the%existing%code%requirements%both%by%the%activity%undertaken%by%the%facility%(major%repair%garage%vs.%minor%repair%garage)%and%by%the%modification%category%(ventilation,%ventilation%in%pits,%gas%detection,%sources%of%ignition,%electrical%classification,%preparation%of%vehicles%for%maintenance,%and%maintenance%and%decommissioning%of%containers.27)%The%document%also%discusses%the%steps%a%fleet%should%consider%when%making%determinations%as%to%the%modifications%that%may%be%required%to%allow%for%the%servicing%of%natural%gas%vehicles,%noting%“…that%each%individual%existing%maintenance%facility%must%be%evaluated%to%determine%any%necessary%modifications%since%the%building%design%and%activities%performed%in%the%facility%can%have%a%significant%impact%on%the%modifications%required.”28%The%document%can%be%accessed%through%the%link%below:%

http://www.cleanvehicle.org/index.shtml%

Natural Gas Vehicle Fueling Considerations Fleets%must%also%ensure%there%is%access%to%adequate%fueling%to%support%the%deployment%of%natural%gas%vehicles.%For%a%detailed%discussion%of%fueling%options,%see%Section%6.%

Natural Gas Vehicle Cost Tools and Calculators While%incentives%certainly%help%offset%the%costs,%they%are%not%available%in%each%state,%and%their%longevity%is%not%guaranteed.%Fleets%are%able%to%realize%an%acceptable%return%on%investment%term%without%incentives%when%considering%other%factors%influenced%by%the%deployment%of%natural%gas%vehicles.%In%some%cases,%the%factors%may%be%nonGmonetary,%such%as%motivations%to%deploy%cleaner%operating%vehicles%in%a%fleet.%%

27%Horne,%Douglas%B.,%Guideline$for$Determining$the$Modifications$Required$for$Adding$Compressed$Natural$Gas$and$Liquefied$Natural$Gas$Vehicles$to$Existing$Maintenance$Facilities,%Clean%Vehicle%Education%Foundation,%pp.%7G9.%28%Ibid.%p.%19.%



There%are%many%tools%available%online%to%help%calculate%different%aspects%of%natural%gas%vehicle%deployment%including%petroleum%reduction,%return%of%investment,%yearly%savings,%emissions,%etc.%The%sections%below%highlight%several%tool%fleets%may%find%useful%when%considering%deployment%of%natural%gas%vehicles.%The%tools%range%in%complexity,%with%the%more%basic%calculators%providing%estimated%savings%and%payback%and%more%complex%models%addressing%cost%of%ownership%and%emission%reductions.%The%following%tools%are%publicly%available%and%readers%are%encouraged%to%employ%the%tool%that%best%provides%the%level%of%detail%needed%for%their%individual%decisionGmaking%process.%%

• Cynergy%Savings%Calculator:%Calculates%an%estimate%of%annual%fuel%savings,%net%savings,%fuel%cost%savings%per%mile,%and%simple%payback%on%incremental%cost%

• DOE’s%Vehicle%Cost%Calculator:%%Calculates%total%cost%of%ownership%and%emissions%based%

on%individual%driving%habits,%comparing%up%to%eight%vehicle%makes%and%models%

• DOE%National%Renewable%Energy%Laboratory’s%VICE%Model:%Evaluates%return%on%

investment%and%payback%period%for%natural%gas%vehicles%and%infrastructure%

• DOE%Argonne%National%Laboratory’s%AFLEET%Tool:%Calculates%a%fleet’s%petroleum%use,%

cost%of%ownership,%and%air%pollutant%and%greenhouse%gas%emissions%

Highlights%of%each%of%the%four%tools,%along%with%links%to%each%tool%are%included%below.%

Cynergy Savings Calculator The%first%of%the%tools%is%a%very%straightforward%webGbased%calculator%developed%by%Cynergy%Fuels.%It%is%available%for%current%and%future%fleet%owners%who%are%looking%for%a%basic%estimate%of%the%cost%benefits%of%a%natural%gas%fleet%compared%to%a%gas%or%diesel%fleet.%With%more%than%80%years%of%combined%experience%in%energy,%engineering,%and%finance%among%its%partners,%Alabama%based%Cynergy%Fuels%builds,%owns,%and%operates%compressed%natural%gas%fueling%stations%in%the%southeastern%U.S.%Cynergy%is%currently%in%the%process%of%building%Alabama’s%largest%CNG%station%in%Dothan.%Cynergy%Fuels%developed%this%calculator%to%help%fleet%owners%considering%CNG%make%a%preliminary%estimate%at%the%costs%before%diving%into%a%more%inGdepth%financial%analysis.%The%calculator%is%available%through%the%Cynergy%website:%

%%%http://cynergyfuels.com/index.php/savingsGcalculator%

%Figure%6%below%shows%the%inputs%and%outputs%of%the%Cynergy%Savings%Calculator.%%Each%input%can%be%easily%adjusted%to%the%user’s%specifications%by%sliding%the%yellow%square%to%the%right%and%left%of%the%bar.%%As%shown,%this%tool%will%then%provide%the%user%with%annual%fuel%savings,%net%savings%over%the%fleet’s%lifetime,%fuel%savings%per%mile,%and%a%simple%payback%on%the%investment.%%%%%%%%%%%%%

%Figure%6:%Cynergy%Savings%Calculator



DOE’s Vehicle Cost Calculator The%second%tool%is%the%U.S.%Department%of%Energy’s%Vehicle%Cost%Calculator.%%This%vehicle%cost%calculator%is%a%relatively%straightforward%tool%that%is%useful%for%comparing%two%or%more%specific%types%or%models%of%vehicles%(up%to%a%total%of%eight),%including%alternative%fuel%vehicles.%This%calculator%can%be%found%on%AFDC’s%tool%webpage%or%at%the%following%web%address:%%

http://www.afdc.energy.gov/calc/%%

The%user%can%pick%from%a%list%of%vehicles%or%create%their%own%custom%vehicles%as%shown%in%Figure%7.%%Once%the%comparative%vehicles%have%been%chosen%and%the%user%has%input%vehicle%usage%data,%the%results%provide%the%user%with%a%basic%cost%analysis%and%graphs%to%compare%each%vehicle,%as%shown%below%in%Figure%8.%%

Figure%7:%AFDC's%Cost%Calculator%Inputs%%%

%Figure%8:%AFDC's%Cost%Calculator%Results%

%



VICE 2.0: Vehicle and Infrastructure Cash-Flow Evaluation Model Another%useful%tool%is%the%VICE%model%2.0%calculator%developed%by%DOE’s%National%Renewable%Energy%Laboratory.%This%model%is%very%useful%for%a%fleet%owner%who%is%interested%in%the%return%of%investment%(ROI)%of%a%natural%gas%fleet.%%The%National%Renewable%Energy%Laboratory’s%VICE%2.0%calculator%is%an%Excel%based%tool%that%helps%fleet%owners%analyze%the%impact%and%benefits%of%financial%investments%in%CNG%vehicles%and%infrastructure.%%It%encompasses%a%wide%variety%of%vehicles%and%infrastructure%build%outs.%%The%VICE%model%2.0%can%be%found%and%directly%downloaded%on%AFDC’s%tools%webpage:%%

http://www.afdc.energy.gov/tools%%%

The%VICE%2.0%tool%is%designed%to%effectively%analyze%the%financials%involved%in%switching%to%a%CNG%fleet%or%fueling%station.%%Although%this%tool%is%relatively%straightforward,%The%National%Renewable%Energy%Laboratory%included%an%instructions%worksheet%to%help%fleet%managers%easily%use%the%tool.%%Figure%9%shows%the%inputs%for%both%vehicles%and%infrastructure,%which%include%the%number%of%vehicles,%vehicles%types,%fuel%usage,%and%planned%vehicle/infrastructure%acquisition%schedules.%%Default%values%are%also%provided%in%case%specific%information%about%the%fleet%or%fueling%station%is%still%unknown.%%Once%all%data%has%been%entered,%the%Results%worksheet%provides%a%quantitative%and%graphical%analysis%of%the%total%cost%of%ownership%over%time.%%

%%

%

% %Figure%9:%VICE%2.0%Input%Examples!



DOE Argonne National Laboratory’s AFLEET Tool: Alternative Fuel Life-Cycle Environment and Economic Transportation Tool This%last%tool%is%a%comprehensive%ExcelGbased%calculator%that%is%exceptionally%useful%for%an%accurate%and%detailed%overview%of%a%natural%gas%fleet’s%total%cost%of%ownership%(TCO),%greenhouse%gas%emissions,%and%petroleum%use%for%both%lightGduty%and%heavyGduty%vehicles.%%DOE’s%AFLEET%tool,%developed%by%the%Argonne%National%Laboratory%(ANL),%uses%data%from%ANL’s%Greenhouse%gases,%Regulated%Emissions,%and%Energy%use%in%Transportation%(GREET)%fuelGcycle%model%and%EPA’s%Motor%Vehicle%Emissions%Simulator%(MOVES)%to%appropriately%compare%multiple%types%of%alternative%fuel%fleet,%or%to%their%gas/diesel%equivalents.%%The%AFLEET%Tool%can%be%found%on%AFDC’s%tools%page%mentioned%above,%or%to%access%the%AFLEET%tool%directly,%the%Excel%document%can%be%downloaded%at%the%following%website:%%

https://greet.es.anl.gov/afleet%%Because%of%the%level%of%detail%provided%by%the%AFLEET%Tool,%a%set%of%instructions%is%included%as%one%of%its%worksheets%to%introduce%new%users%to%the%tool.%%Along%with%the%instructions,%this%tool%provides%a%worksheet%for%the%fleet’s%inputs,%payback%inputs,%total%cost%of%ownership%inputs,%and%footprint%inputs%as%well%as%a%worksheet%for%each%of%the%respective%results%shown%both%numerically%and%graphically.%Figure%10%shows%the%key%inputs%for%the%AFLEET%Tool.%%These%inputs%include:%the%state%in%which%the%vehicle(s)%will%operate;%the%number,%the%annual%vehicle%mileage,%fuel%economy,%and%purchase%price%by%fuel%type%for%both%lightGduty%and%heavyGduty%vehicles;%fuel%price;%years%of%planned%ownership,%financial%assumptions;%and%fuel%production%assumptions.%Default%inputs%are%available%if%a%fleet%does%not%have%requested%information%available.%%Under%each%outputs%worksheet,%the%user%can%find%the%results%of%their%inputs%given%in%a%variety%of%tables%and%graphs%all%with%detailed%comparisons%between%the%individual%fleets%described%under%the%Inputs%tab.%Figures%11%and%12%are%examples%of%two%of%the%total%cost%of%ownership%graphs%given,%which%in%this%scenario,%compare%a%diesel%fleet%and%LNG%fleet%of%30%refuse%trucks.%In%Figure%10,%the%total%cash%flow%of%both%fleets%is%compared%side%by%side%over%a%20Gyear%span.%%Figure%11%analyzes%a%breakdown%of%the%total%cost%of%ownership%for%each%of%the%described%fleets%over%their%respective%lifespans.%%Similar%results%are%also%provided%for%both%emissions%and%payback.%%%%%



Figure%10:%AFLEET%Tool%Key%Inputs%

%%%



Figure%11:%AFLEET%Tool%Result%1%

%

Figure%12:%AFLEET%Tool%Result%2%

%%%

%



Section 6: Natural Gas Fueling Infrastructure This%section%discusses%available%fueling%options%and%locations%for%NGVs.%According%to%the%AFDC%Station%Locator,%59%public%LNG%stations%and%746%public%CNG%stations%were%available%throughout%the%U.S.%as%of%September%2014.%Approximately%710%private%natural%gas%stations%operated%in%the%U.S.%as%of%September%2014.%Although%these%numbers%seem%low%compared%to%the%160,000%gasoline%stations%spread%across%the%country,%the%U.S.%has%numerous%natural%gas%pipelines%that%could%be%utilized%when%demand%from%the%NGV%market%increases.%The%United%States%is%currently%investing%$3G$4%billion%in%natural%gas%infrastructure.%Since%2009,%the%amount%of%CNG%fueling%infrastructure%has%grown%by%64%,%while%the%number%of%planned%CNG%stations%has%grown%by%290%%since%2010.29%%

AFDC Station Locator Readers%are%encouraged%to%visit%the%AFDC%Station%Locator%to%search%for%natural%gas%stations%in%their%vicinity.%The%AFDC%Station%Locator%makes%it%easy%to%identify%locations%for%fueling.%The%station%locator%is%accessible%at%the%following%website:%%%

%http://www.afdc.energy.gov/locator/stations/%%

Once%on%the%site,%enter%the%location%of%interest%and%click%on%the%All%Fuels%button%to%select%either%Compressed%Natural%Gas%or%Liquefied%Natural%Gas%(LNG).%By%selecting%more%search%options,%you%can%further%refine%your%search%to%include:%

• Private%stations%

• Planned%stations%

• Station%owners%(private,%federal,%state,%local,%utility)%

• Payment%options%

• Limits%to%the%distance%of%your%search%

Figure%13%below%is%a%screenshot%of%AFDC’s%Alternative%Fueling%Station%Locator,%showing%natural%gas%stations%in%the%U.S.%With%this%tool,%consumers%and%fleets%can%search%for%any%type%of%alternative%fueling%station%by%entering%an%address,%zip%code,%or%state.%

%%%%%%%%%%%%%%

Figure%13:%Alternative%Fueling%Station%Locator %%

29%www.ngvc.org/gov_policy/documents/cng_propane_11.27.13.pdf%



%There%is%also%a%mobile%version%of%the%locator%that%iPhone%users%can%download%from%Apple’s%App%Store.%This%app%allows%iPhone%users%to%select%an%alternative%fuel%and%locate%the%20%nearest%stations%within%a%30Gmile%radius%for%that%fuel.%Fueling%stations%for%electricity,%natural%gas,%biodiesel,%E85%Ethanol,%propane,%and%hydrogen%can%all%be%found%within%the%app’s%database,%which%contains%information%for%more%than%15,000%alternative%fueling%stations%across%the%country.30%%

Table%10%highlights%the%number%of%public%and%private%natural%gas%stations%operating%in%the%fourGstate%region%as%of%September%2014.%

!Table%10:%Natural%Gas%Stations%in%FourPState%Region%

State%Number%of%Stations%

CNG% LNG%Alabama% 23% 2%Georgia% 28% 2%South%Carolina% 10% 1%Tennessee% 16% 2%

Types of CNG Fueling Stations There%are%two%types%of%CNG%fueling%stations:%TimeGFill%and%FastGFill.%CNG%stations%must%be%built%for%specific%applications%as%the%correct%combination%of%pressure%and%storage%are%needed%for%the%expected%vehicles.%Most%retail%stations%will%be%constructed%as%FastGFill%systems,%while%fleet%operations%with%the%ability%to%refuel%overnight%have%the%option%to%use%TimeGFill%systems.%In%addition%to%the%two%fueling%station%types%there%is%also%an%option%for%home%refueling,%as%well%as%a%developing%market%for%portable%fueling%systems.%

TimePFill%Fueling%TimeGFill%fueling%systems%fuel%vehicles%directly%from%a%compressor.%Therefore,%fueling%is%significantly%slower%and%would%be%ideal%for%fleets%where%vehicles%return%daily%to%central%locations.%TimeGFill%fueling%stations%have%lower%costs%associated%with%equipment%and%installation%because%no%priority,%storage,%or%extra%fueling%components%are%needed.%The%advantage%of%TimeGFill%systems%is%a%lesser%heat%of%recompression,%which%leads%to%a%fuller%fill%and%better%electricity%rates%needed%to%run%the%compressor%during%offGpeak%hours%at%night.%Figure%14%depicts%a%typical%TimeGFill%fueling%system.%%

%

30%http://www.nrel.gov/news/press/2013/4308.html%%

Making%the%Case%for%a%TimePFill%Fueling%Station%

The%city%of%Greensboro,%North%Carolina%recently%installed%a%$200,000%TimeGFill%fueling%station%and%purchased%two%CNG%recycling%trucks.%The%station%was%funded%in%part%by%the%American%Recovery%and%Reinvestment%Act%through%the%U.S.%Department%of%Energy.%The%return%on%investment%projection%for%the%two%CNG%trucks%is%expected%to%be%around%three%years,%while%the%incremental%cost%for%each%vehicle%is%just%under%$30,000.%The%city%projects%fuel%savings%of%$10,000%annually%per%truck.%Even%without%considering%the%threeGyear%return%on%investment%projection,%the%city%still%expects%a%$55,000%reduction%in%fuel%costs%over%the%eight%to%nine%year%life%cycle%of%the%vehicles.1%%%http://www.government-fleet.com/channel/fuel-management/news/story/2012/08/greensboro-builds-cng-station-purchases-cng-recycling-trucks.aspx?prestitial=1%



%%%

%%%%

Figure%14:%TimePFill%Station Source:%http://www.afdc.energy.gov/fuels/natural_gas_infrastructure.html%%

%FastPFill%Fueling%FastGFill%fueling%systems%are%best%for%retail%stations,%fleets%that%require%multiple%fillGups%per%day,%or%transit%buses%that%need%fuel%intermittently.%FastGfill%stations%receive%fuel%from%a%local%utility%line%at%a%low%pressure%and%then%use%an%onGsite%compressor%to%condense%the%gas%to%a%higher%pressure.%This%system%is%similar%to%conventional%gasoline%fueling%stations,%taking%less%than%five%minutes%to%fill%a%20Ggallon%equivalent%tank.%A%2010%study%conducted%by%the%Department%of%Energy%concluded%that%a%small%fastGfill%CNG%station%costs%around%$400,000%to%construct%and%install,%while%medium%to%large%stations%designed%for%larger%fleets%can%cost%between%$600,000%and%$1.7%million.31%Figure%15%depicts%a%typical%FastGFill%fueling%system.%

%%%%%%%%%

%Figure%15:%FastPFill%Station%

Source:%http://www.afdc.energy.gov/fuels/natural_gas_infrastructure.html%

%CNG%Fueling%at%Home%Consumers%have%the%option%to%install%fueling%systems%at%their%homes.%As%of%midG2014,%the%only%existing%CNG%homeGfueling%system%is%the%BRC%Fuelmaker%Phill.%Eaton%Corp.%is%expected%to%introduce%a%home%refueling%product%into%the%market%by%the%end%of%2015.%These%systems%run%on%small%amounts%of%electricity%and%connect%to%the%natural%gas%line%already%present%in%60%%of%homes%in%the%United%States.%Home%refueling%costs%less%than%public%CNG%station%fueling%and%significantly%less%than%traditional%gasoline%or%diesel%fueling.32%

%

31%http://www.autogasforamerica.org/pdf/Alternative%20Fuel%20Fact%20BriefG%20Natural%20Gas.pdf%%32%http://www.cngnow.com/vehicles/refueling/Pages/refuelingGatGhome.aspx%%



LNG Fueling LNG%fueling%stations%are%similar%to%gasoline%and%diesel%stations%in%the%sense%that%they%deliver%a%liquid%fuel.%LNG%must%be%stored%and%dispensed%as%a%superGcooled,%liquefied%gas;%therefore,%protective%clothing%and%gloves%are%required%when%fueling%vehicles.%LNG%fueling%is%available%in%two%options:%mobile%and%containerized.%Mobile%fueling%delivers%LNG%by%a%tanker%truck%that%contains%metering%and%dispensing%onboard.%Containerized%stations%are%similar%to%gasoline%or%diesel%stations%in%mechanical%and%structural%parts,%as%well%as%functionality.%Figure%16%below%illustrates%a%containerized%LNG%station.%

%%%%

%%%%

%%

Figure%16:%Containerized%LNG%Station%Source:%http://www.afdc.energy.gov/fuels/natural_gas_infrastructure.html%

Infrastructure Deployment Assistance Assistance%is%available%in%some%states%to%help%fleets%interested%in%deploying%natural%gas%infrastructure.%In%South%Carolina,%governmental,%institutional,%and%commercial%and%industrial%properties%are%eligible%for%the%SouthCarolinaSaves%program%administered%by%Abundant%Power,%which%not%only%offers%low%cost%financing%for%alternative%fuel%vehicles,%but%also%infrastructure%projects.%%%Fleets%are%also%encouraged%to%contact%their%local%natural%gas%utility%for%assistance.%In%Georgia%(AGL%Resources)%and%Tennessee%(Chattanooga%Gas)%offer%preliminary%feasibility%studies%and%energy%analysis%to%assist%in%evaluating%potential%CNG%fueling%stations%for%fleet%applications.%%In%Georgia,%Atlanta%Gas%Light%(AGL)%offers%additional%assistance%including%funding%to%support%the%construction%of%private%CNG%fueling%stations%in%metro%Atlanta%and%along%major%transportation%corridors%in%Georgia%as%well%as%a%reduced%cost%lease%on%the%BRC%FuelMaker%Phill%CNG%vehicle%home%refueling%appliance.%%%For$more$information$on$utility$assistance,$see$Utility!Programs!Influencing!NGV!Deployment!in!the!

Southeast!Region$on$page$38.$$$



Section 7: Natural Gas Vehicle and Infrastructure Incentives and Other Alternative Fuel-Related Policies There%are%a%variety%of%incentives%available%to%help%offset%the%costs%of%purchasing%natural%gas%vehicles,%fueling%equipment,%and%conversions,%as%well%as%to%encourage%the%use%of%NGVs.%Incentives%are%available%at%both%the%federal%and%state%levels.%This%section%highlights%federal%incentives%and%the%incentives%available%in%each%of%the%four%states.%The%details%of%these%incentives%are%included%below.%Additional%federal%and%state%incentives%for%all%types%of%alternative%fuels%can%be%found%at%http://www.afdc.energy.gov/laws/%as%well%as%in%the%policy%section%of%this%workbook.%!In%addition,%this%section%also%includes%information%on%other%policies%and%regulations,%both%at%the%federal%level%and%within%the%fourGstate%region%that%may%impact%the%deployment%of%alternative%fuel%vehicles%and%infrastructure.%

!Federal NGV Incentives

Alternative%Fuel%Tax%Exemption:%The%federal%government%provides%a%tax%exemption%on%alternative%fuels%used%in%some%nontaxable%circumstances.%%Common%nontaxable%uses%in%motor%vehicles%can%include:%in%a%school%bus,%on%a%farm%for%farming%purposes,%in%certain%intercity%and%local%buses,%and%exclusive%use%by%a%nonprofit%educational%organization.%This%exemption%is%not%available%to%tax%exempt%entities%that%are%not%liable%for%excise%taxes%on%transportation%fuels.%For%more%information,%visit:%

http://www.afdc.energy.gov/laws/laws/US/tech/3253%%

Improved%Energy%Technology%Loans:%The%U.S.%Department%of%Energy%is%providing%loan%guarantees%to%eligible%projects%that%support%early%commercial%use%of%advanced%technologies,%including%AFVs%that%reduce%air%pollution%and%greenhouse%gases.%For%more%information,%visit:%

http://www.afdc.energy.gov/laws/laws/US/tech/3253%%

High%Occupancy%Vehicle%(HOV)%Lane%Exemption:%States%are%allowed%to%exempt%certified%low%emission%and%energyGefficient%vehicles%from%HOV%lane%requirements%within%the%state.%Eligible%vehicles%must%be%certified%by%the%U.S.%Environmental%Protection%Agency%(EPA)%and%appropriately%labeled%for%use%in%HOV%lanes.%The%U.S.%Department%of%Transportation%is%responsible%for%planning%and%implementing%HOV%programs,%including%the%exemption%criteria%established%by%EPA.%States%that%choose%to%adopt%these%requirements%will%be%responsible%for%enforcement%and%vehicle%labeling.%The%HOV%exemption%for%low%emission%and%energyGefficient%vehicle%expires%September%30,%2017.%For%more%information,%visit:%

http://www.afdc.energy.gov/laws/law/US/386%%

Natural Gas Incentives in the Southeast Region Alabama Incentives

AlabamaSaves:!Alabama%businesses%are%provided%one%percent%fixed%rate%financing%for%LNG/CNG%or%propane%fleet%conversions,%lighting,%HVAC,%and%other%energy%projects.%As%of%April%2013,%more%than%20%loans%have%closed%and%nearly%$17%million%of%funds%have%been%deployed.%For%more%information,%visit:%%

%http://www.alabamasaves.com/Overview.aspx%

%



Local!Government!Energy!Loan!Program:!The%Alabama%Local%Government%Energy%Loan%Program%(LGELP)%provides%lowGcost%revolving%loans%for%energy%efficiency%projects%in%buildings%as%well%as%for%conversion%of%vehicles%to%LNG/CNG%or%propane.%Through%the%program,%local%governments%and%public%colleges%and%universities%can%borrow%up%to%$350,000%for%fleet%conversions.%For%more%information%visit:%

%%http://www.adeca.alabama.gov/Divisions/energy/Pages/EnergyFinancing.aspx%%

%Georgia Incentives

Alternative!Fuel!Vehicle!(AFV)!Tax!Credit:%The%state%of%Georgia%offers%an%income%tax%credit%for%10%%of%the%cost%to%purchase%or%lease%a%new%dedicated%Alternative%Fuel%Low%Emission%Vehicle%(LEV)%or%to%convert%a%vehicle%to%operate%solely%on%an%alternative%fuel%that%meets%the%standards%for%a%low%emission%vehicle,%up%to%$2,500%per%vehicle.%It%is%important%to%note%that%this%incentive%does%not%apply%to%hybrid%electric,%flex%fuel,%or%biPfuel%vehicles.%Any%portion%of%the%credit%not%used%in%the%year%the%LEV%is%purchased%or%converted%may%be%carried%over%for%up%to%five%years.%For%more%information,%visit:%%

%http://www.afdc.energy.gov/laws/law/GA/5424%%%%Alternative!Fuel!Vehicle!(AFV)!High!Occupancy!Vehicle!(HOV)!Lane!Exemption:%The%state%of%Georgia%offers%a%special%license%plate%for%alternative%fuel%vehicles,%which%allows%access%to%the%designated%HOV%lanes.%Any%vehicle%that%has%been%certified%by%the%EPA%in%accordance%with%the%Federal%Clean%Air%Act%may%apply%for%the%Georgia%AFV%License%Plate.%Alternative%fuel%vehicles%displaying%the%proper%AFV%license%plate%may%use%HOV%lanes,%regardless%of%the%number%of%passengers.%In%addition,%vehicles%with%the%AFV%tag%may%also%use%the%state’s%High%Occupancy%Toll%(HOT)%lanes%tollGfree.%For%more%information,%visit:%%

%http://www.afdc.energy.gov/laws/law/GA/5183%%%

Commercial!Alternative!Fuel!Vehicle!(AFV)!Tax!Credit:%Beginning%July%1,%2015,%the%state%of%Georgia%will%offer%an%income%tax%credit%is%available%to%taxpayers%who%purchase%new%commercial%mediumGduty%or%heavyGduty%AFVs%that%operate%using%at%least%90%%alternative%fuel.%Eligible%alternative%fuels%include%electricity,%propane,%natural%gas,%or%hydrogen%fuel.%MediumGduty%hybrid%electric%vehicles%also%qualify.%Eligible%mediumGduty%AFVs%with%a%gross%vehicle%weight%rating%(GVWR)%between%8,500%and%26,001%pounds%(lbs.)%may%qualify%for%a%credit%of%up%to%$12,000.%HeavyGduty%AFVs%with%a%GVWR%over%26,001%lbs.%may%qualify%for%a%credit%of%up%to%$20,000.%The%maximum%credit%per%taxpayer%is%$250,000%and%no%unused%portion%of%the%credit%may%be%carried%forward.%Qualified%AFVs%must%be%purchased%before%June%30,%2017,%remain%registered%in%Georgia%for%at%least%five%years,%be%certified%by%the%Georgia%Board%of%Natural%Resources,%and%accumulate%at%least%75%%of%their%annual%mileage%in%Georgia.%The%Georgia%Department%of%Revenue%will%preGapprove%credit%applications%on%a%first%come,%first%served%basis.%Up%to%$2.5%million%in%total%credits%will%be%available%each%fiscal%year.%%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/GA/11420%%



South Carolina Incentives Energy!Efficiency!Revolving!Loan!(EERL):!%This%loan%fund%is%open%to%business%or%industry,%utilities,%and%government%agencies%and%fleet%conversions%are%eligible%under%the%program%and%the%loan%can%be%used%for%fuel%kits%in%conversion%or%the%alternative%fuel%upfit%cost%in%a%new%vehicle.%It%has%a%low%interest%rate%that%varies%on%a%transactionGbyGtransaction%basis.%Interested%parties%must%complete%an%application,%and%have%an%approved%energy%conservation%plan%and%a%technical%analysis.%This%loan,%which%lasts%for%oneGandGaGhalf%times%the%expected%payback%of%the%loan,%is%evaluated%based%on%financial%stability%of%the%borrower%and%technical%merit%of%the%proposed%energy%plan%and%has%a%maximum%amount%of%$1%million.%For%more%information,%visit:%%

http://www.energy.sc.gov/incentives/eerl%%%ConserFund:!The%South%Carolina%Energy%Office%administers%a%lowGinterest%loan%program%for%energyGefficiency%improvements%and%is%available%to%state%and%local%governments,%school%districts,%and%nonGprofits.%Fleet%conversions%to%alternative%fuels%are%eligible%under%the%program%and%the%loan%can%be%used%for%fuel%kits%in%conversion%or%the%alternative%fuel%upfit%cost%in%a%new%vehicle.%The%loan%has%a%two%percent%interest%rate%for%up%to%$500,000%per%fiscal%year.%For%more%information,%visit:%%

http://www.energy.sc.gov/incentives/conserfund%

%SouthCarolinaSaves:!Abundant%Power%offers%low%cost%financing%to%South%Carolina%governmental,%institutional,%and%commercial%and%industrial%properties%for%qualified%conservation%measures,%including%LNG/CNG%or%propane%fleet%conversions.%A%below%market%rate%is%enabled%through%the%use%of%Qualified%Energy%Conservation%Bonds%allocated%by%the%South%Carolina%Energy%Office%and%issued%through%the%South%Carolina%JobsGEconomic%Development%Authority%(JEDA).%The%Program's%funding%may%be%used%to%purchase%and%install%energy%efficiency%and%alternative%fueling%projects%(fleets%and%infrastructure)%that%achieve%a%10Gyear%payback%or%better.%%For%more%information,%contact%Greg%Montgomery%with%Abundant%Power:%

%[email protected]%%

Tennessee Incentives Reduced!Valuation!of!CNG!Infrastructure!for!Property!Tax:!Any%public%utility,%commercial,%or%industrial%property%certified%to%fuel%natural%gas%vehicles%will%be%valued%for%property%tax%purposes%at%no%more%than%30%%of%its%total%installed%cost.%(Reference%House%Bill%1272,%2013,%and%Tennessee%Code%67G5G601%and%67G4G2004).%%

http://www.afdc.energy.gov/laws/10960$!

High!Occupancy!Vehicle!(HOV)!Lane!Exemption:%Any%Inherently%Low%Emission%Vehicles%or%Low%Emission%and%EnergyGEfficient%Vehicles%as%defined%by%the%U.S.%Environmental%Protection%Agency%weighing%26,000%lbs.%or%less,%are%permitted%the%use%of%HOV%lanes%with%no%restriction%on%passenger%number.%There%are%designated%AFV%stickers%that%indicate%single%occupant%AFVs%permitted%to%drive%in%the%HOV%lane.%For%more%information,%visit:%%

%http://www.afdc.energy.gov/laws/law/TN/6433%%%

!

!



Green!Parking!Permit!(Nashville):%Clean%technology%vehicles%may%be%eligible%for%a%Green%Parking%permit%that%allows%for%free%parking%only%at%metered%spaces%located%within%the%Downtown%Central%Business%Improvement%District.%The%permit%is%only%available%for%private%passenger%vehicles.%For%more%information,%visit:%%http://www.nashvilleclerk.com/motorGvehicles/greenGparkingGpermit/%%

Other Federal Policies Influencing NGV Deployment Vehicle%Acquisition%and%Fuel%Use%Requirements%for%Federal%Fleets:%Under%the%Energy%Policy%Act%(EPAct)%of%1992,%75%%of%new%lightGduty%vehicles%acquired%by%covered%federal%fleets%must%be%alternative%fuel%vehicles%(AFVs).%For%more%information,%visit:%%


Vehicle%Acquisition%and%Fuel%Use%Requirements%for%State%and%Alternative%Fuel%Provider%Fleets:%Under%the%Energy%Policy%Act%(EPAct)%of%1992,%certain%state%government%and%alternative%fuel%provider%fleets%are%required%to%acquire%alternative%fuel%vehicles%(AFVs).%For%more%information,%visit:%%


Other Laws, Regulations, and Policies Influencing NGV Deployment in the Southeast Region

Alabama Laws, Regulations, and Policies Alternative!Fuel!Tax:!!The%state%road%tax%for%vehicles%that%operate%on%propane%(liquefied%petroleum%gas,%or%LPG)%or%natural%gas%is%paid%through%the%purchase%of%an%annual%flat%fee%sticker,%and%the%amount%is%based%on%the%vehicle's%gross%vehicle%weight%rating.%Each%person%owning%and/or%operating%a%vehicle%that%operates%on%propane%or%natural%gas%must%obtain%an%annual%decal%from%the%Alabama%LPG%Board.%The%decal%must%be%affixed%to%the%vehicle%according%to%LPG%Board%specification%as%proof%that%the%issuance%fee%and%decal%fee%have%been%paid.%Vehicle%owners%must%apply%for%a%decal%within%10%days%of%converting%a%vehicle%to%operate%on%propane%or%natural%gas%or%a%20%%penalty%will%be%applied%to%the%decal%fee.%OutGofGstate%alternative%fuel%vehicle%operators%that%purchase%propane%or%natural%gas%within%the%state%must%pay%the%current%Alabama%motor%fuel%tax%or%they%may%elect%to%purchase%the%annual%flat%fee%decal.%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/AL/4153%%

FuelLEfficient!Green!Fleets!Policy!and!Fleet!Management!Program!Development:!!The%Alabama%Legislature%will%establish%a%Green%Fleets%Policy%(Policy)%outlining%a%procedure%for%procuring%state%vehicles%based%on%criteria%that%includes%fuel%economy%and%lifecycle%costing.%State%fleet%managers%must%classify%their%vehicle%inventory%for%compliance%with%the%Policy%and%submit%annual%plans%for%procuring%fuelGefficient%vehicles.%These%plans%must%reflect%a%four%percent%annual%increase%in%average%fleet%fuel%economy%for%lightGduty%vehicles,%a%three%percent%annual%increase%in%average%fleet%fuel%economy%for%mediumGduty%vehicles,%and%a%two%percent%annual%increase%in%average%fleet%fuel%economy%for%heavyGduty%vehicles%per%fiscal%year.%The%Policy%will%also%require%that%government%entities%manage%and%operate%their%fleets%in%a%manner%that%is%energy%efficient,%minimizes%emissions,%and%reduces%petroleum%dependency%by%using%specified%proven%technology%the%Green%Fleet%Review%Committee%identifies.%%In%addition,%the%Alabama%Department%of%Transportation%must%appoint%and%employ%a%fleet%manager%to%develop%a%statewide%fleet%management%program%(Program).%The%Program%will%



propose%fleet%management%policies,%procedures,%and%guidelines%for%all%state%agency,%board,%commission,%and%department%fleets%and%will%address%future%cooperation%between%the%Department%of%Finance%and%the%Green%Fleet%Review%Committee,%which%ensure%compliance%with%the%Green%Fleets%Policy.%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/AL/6546%%

Georgia Laws, Regulations, and Policies Compressed!Natural!Gas!Permit:!Anyone%dispensing%CNG%for%use%in%vehicles%must%obtain%a%permit%from%the%Georgia%Safety%Fire%Commissioner.%Individuals%or%businesses%must%pay%a%oneGtime%fee%of%$150. For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/GA/6045%

Georgia!Office!of!Planning!and!Budget!Policy!Memorandum!No.!10!Rev.!8:$Policy%10,%issued%by%the%Office%of%Planning%and%Budget,%supports%the%Georgia%Department%of%Administrative%Services%%(DOAS)%rules,%regulations,%and%procedures%governing%assignment%of%motor%vehicle%usage.%The%memorandum%includes%an%Alternative%Fuel%Vehicle%Program%that%states%“all%efforts%will%be%made%to%ensure%approximately%75%%of%new%eligible%vehicles%purchased%by%state%agencies%are%alternative%fuel%capable.%Alternative%fuel%vehicles%will%be%made%available%through%the%Statewide%Business%Services%Division’s%State%Purchasing%contracts.%Vehicle%models%identified%for%purchase%and%use%in%nonattainment%areas%that%are%not%recognized%alternative%fuels%capable%will%require%justification%and%approval%by%DOAS%prior%to%purchase.%

South Carolina Laws, Regulations, and Policies

State!Agency!Alternative!Fuel!Use!Requirement:!Whenever%practical%and%economically%feasible,%all%state%agencies%operating%alternative%fuel%vehicles%must%use%alternative%fuels%in%those%vehicles.%Private%businesses%are%encouraged%to%increase%the%use%of%alternative%fuels%in%the%state.%For%more%information,%visit:%

http://www.afdc.energy.gov/laws/law/SC/5473%

Tennessee Laws, Regulations, and Policies

Liquefied!Petroleum!Gas!(Propane)!and!Natural!Gas!Liability!Immunity: An%individual%or%entity%that%supplies,%handles,%transports,%or%sells%propane%or%natural%gas%at%a%retail%station%is%immune%from%civil%liability%if%incorrect%use%of%the%fueling%equipment%causes%injury%or%damage.%In%order%to%be%immune,%the%fuel%provider%must%have%exercised%reasonable%care%of%the%equipment%and%taken%reasonable%steps%to%warn%the%customer%of%the%hazards%associated%with%misuse%of%the%equipment.%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/TN/6064%%

Compressed!Natural!Gas!(CNG)!Tax!and!Permit: A%$0.13%per%gallon%tax%is%imposed%on%CNG%used%for%operating%motor%vehicles%on%public%highways.%For%the%purpose%of%determining%the%tax%on%CNG,%the%Tennessee%Department%of%Revenue%(Department)%uses%a%gallon%equivalent%factor%of%5.66%pounds.%A%CNG%vehicle%user%must%apply%for%and%obtain%a%CNG%user's%permit%from%the%Department%unless%the%user%purchases%CNG%from%a%dealer%through%a%metered%dispenser.%Government%agencies%are%exempt%from%this%tax.%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/TN/5436%



%Compressed!Natural!Gas!(CNG)!Dealer!Permit: CNG%dealers%must%apply%for%and%obtain%a%permit%from%the%Tennessee%Department%of%Revenue.%The%permit%authorizes%the%dealer%to%collect%and%remit%taxes%on%CNG%delivered%to%motor%vehicles%by%means%of%a%dispenser%with%meter%capability.%This%permit%will%remain%valid%as%long%as%the%dealer%provides%timely%reports%and%remits%taxes%when%due,%or%until%surrendered%or%cancelled.%All%CNG%meters%and%dispensers%are%subject%to%inspection%and%verification%by%the%Tennessee%Department%of%Agriculture's%Weights%and%Measures%enforcement%provisions.%For%more%information,%visit:%%


Alternative!Fuel!and!Fuel!Efficient!Vehicle!Acquisition!and!Use!Requirements: The%Tennessee%Department%of%General%Services%must%ensure%that%at%least%25%%of%newly%purchased%passenger%motor%vehicles%procured%for%use%in%areas%designated%as%ozone%nonattainment%areas%are%hybrid%electric%vehicles%(HEVs)%or%natural%gas%vehicles%(NGVs),%provided%that%such%vehicles%are%available%at%the%time%of%procurement.%If%HEVs%or%NGVs%are%not%available,%conventional%gasoline%vehicles%achieving%an%average%fuel%economy%of%at%least%25%miles%per%gallon%(mpg)%may%satisfy%the%requirement.%In%areas%not%designated%as%ozone%nonattainment%areas,%at%least%25%%of%newly%purchased%passenger%motor%vehicles%must%be%HEVs,%NGVs,%or%conventional%gasoline%vehicles%achieving%an%average%fuel%economy%of%at%least%25%mpg.%

State%fleets%must%make%every%effort%to%ensure%that%100%%of%newly%purchased%motor%vehicles%are%energyGefficient%vehicles.%EnergyGefficient%vehicles%are%defined%as%passenger%vehicles%that%are%alternative%fuel%vehicles%using%alternative%fuels,%as%defined%by%the%Energy%Policy%Act%of%1992;%HEVs;%conventional%gasoline%vehicles%achieving%an%average%fuel%economy%of%at%least%25%mpg;%or%vehicles%powered%by%ultraGlow%sulfur%diesel%achieving%an%average%fuel%economy%of%at%least%30%mpg.%Additionally,%state%agencies%should%strive%to%use%ethanol%and%biodiesel%in%appropriate%stateGowned%vehicles%whenever%possible%and%should%support%the%development%of%biofuels%fueling%infrastructure.%

The%Tennessee%Department%of%Health%and%Conservation%must%inventory%the%state's%passenger%vehicle%fleet%and%prepare%annual%progress%reports%that%outline%cost%savings,%pollution%avoidance,%and%petroleum%displacement%of%the%fleet.%For%more%information,%visit:%%


Energy!Task!Force: The%Governor's%Task%Force%on%Energy%Policy%is%developing%a%state%energy%plan%to%facilitate%energy%efficiency%and%the%use%of%alternative%and%renewable%fuels%in%Tennessee.%The%energy%plan%will%include%a%summary%of%opportunities%for%the%state%government%to%use%an%energyGefficient%approach%to%purchasing%and%managing%the%state%vehicle%fleet;%prospective%policies,%legislation,%and%incentives%to%encourage%energy%efficiency;%possible%publicGprivate%partnerships%to%encourage%research%and%development%of%clean%energy%technologies;%and%strategies%for%expanding%the%use%of%alternative%and%renewable%fuels.%For%more%information,%visit:%%


Utility!District!Natural!Gas!Fueling!Station!Regulation:%Utility%districts%may%own%and%operate%natural%gas%fueling%stations%provided%that%the%operation%of%the%station%is%not%franchised%to%another%entity.%This%regulation%does%not%prohibit%private%companies%from%owning%or%operating%natural%gas%fueling%stations%within%a%utility%district%service%area.%For%more%information,%visit:%%

http://www.afdc.energy.gov/laws/law/TN/8500%



There%are%also%a%number%of%laws%and%regulations%related%to%other%alternative%fuels,%including%those%specific%to%propane,%electric,%renewable%fuels/biofuels/biodiesel/ethanol,%and%hydrogen/fuel%cells.%Readers%interested%in%the%laws%and%regulations%related%to%these%other%fuels%are%encouraged%to%visit%the%AFDC’s%Laws%and%Incentives%page%from%the%link%below.%From%the%site,%you%will%be%able%to%search%for%both%federal%incentives%and%laws%as%well%as%state%incentives%and%laws.%%

http://www.afdc.energy.gov/laws/%

Utility Programs Influencing NGV Deployment in the Southeast Region In%addition%to%the%federal%and%state%policies,%there%are%several%utilityGsponsored%programs%that%may%be%of%assistance%to%fleets%interested%in%deploying%NGVs%or%installing%natural%gas%fueling%infrastructure.%Highlights%of%these%programs%are%included%below.%%

Georgia Utility Compressed!Natural!Gas!Infrastructure!Analysis:%%AGL%Resources%and%its%subsidiaries%(Atlanta%Gas%Light,%Chattanooga%Gas,%Elkton%Gas,%Florida%City%Gas,%Elizabethtown%Gas,%Nicor%Gas,%and%Virginia%Natural%Gas)%offer%preliminary%feasibility%studies%and%energy%analysis%to%assist%in%evaluating%potential%CNG%fueling%stations%for%fleet%applications.%%Reduced!Compressed!Natural!Gas!Fueling!Infrastructure!Lease:%%Atlanta%Gas%Light%(AGL)%offers%a%reduced%cost%lease%on%the%BRC%FuelMaker%Phill%CNG%vehicle%home%refueling%appliance.%To%qualify,%applicants%must%be%AGL%customers,%meet%the%specified%credit%requirements,%and%agree%to%the%terms%of%the%standard%lease%agreement.%The%$60%per%month%lease%option%is%available%to%the%first%500%applicants%and%includes%installation%costs%of%up%to%$2,000.%%Atlanta!Gas!Light:%Atlanta%Gas%Light%(AGL)%has%a%VG52%rate%which%provides%for%AGL%to%build%and%maintain%CNG%stations%for%fleet%customers%and%CNG%retailers.%%Generally%speaking,%AGL%installs%all%of%the%specialized%CNG%equipment%such%as%compressor(s),%storage,%controls,%dispenser(s),%card%reader(s),%etc.%and%this%can%also%include%the%concrete%work%for%dispenser%island(s)%and%canopy.%%The%customer%would%typically%provide%the%land%and%do%any%site%work%such%as%grading,%paving,%lighting,%signage,%etc.%%AGL%provides%comprehensive%maintenance%of%the%CNG%equipment%and%the%customer%would%operate%the%station,%including%setting%the%price%at%the%dispensers%(in%the%case%of%a%retail%CNG%station),%and%remitting%any%motor%fuel%taxes%that%are%due.%%AGL%recovers%its%costs%of%capital%and%maintenance%of%the%station%through%the%VG52%Facilities%Charge%that%is%added%to%the%customer’s%gas%bill.%

%

Tennessee Utility Compressed!Natural!Gas!Infrastructure!Analysis:%%AGL%Resources%and%its%subsidiaries%(Atlanta%Gas%Light,%Chattanooga%Gas,%Elkton%Gas,%Florida%City%Gas,%Elizabethtown%Gas,%Nicor%Gas,%and%Virginia%Natural%Gas)%offer%preliminary%feasibility%studies%and%energy%analysis%to%assist%in%evaluating%potential%CNG%fueling%stations%for%fleet%applications.%Chattanooga%Gas%is%the%gas%utility%in%Hamilton%County%and%Bradley%County,%TN.%%Chattanooga!Gas!Company!VL1!Rate:%Chattanooga%Gas%Company%(CGC)%has%a%VG1%rate%which%provides%for%CGC%to%build%and%maintain%CNG%stations%for%fleet%customers%and%CNG%retailers.%%Generally%speaking,%CGC%installs%all%of%the%specialized%CNG%equipment%such%as%compressor(s),%storage,%controls,%dispenser(s),%card%reader(s),%etc.%and%this%can%also%include%the%concrete%work%for%dispenser%island(s)%and%canopy.%%The%customer%would%typically%provide%the%land%



and%do%any%site%work%such%as%grading,%paving,%lighting,%signage,%etc.%%CGC%provides%comprehensive%maintenance%of%the%CNG%equipment%and%the%customer%would%operate%the%station,%including%setting%the%price%at%the%dispensers%(in%the%case%of%a%retail%CNG%station),%and%remitting%any%motor%fuel%taxes%that%are%due.%%CGC%recovers%its%costs%of%capital%and%maintenance%of%the%station%through%the%VG1%Facilities%Charge%that%is%added%to%the%customer’s%gas%bill.%



Section 8: The Future of Natural Gas A%“chicken%and%egg”%dilemma%exists%in%regards%to%fueling%infrastructure%and%NGV%availability.%In%the%market’s%current%state,%further%NGV%infrastructure%development%may%not%be%costGeffective%due%to%limited%demand.%Fueling%stations%are%reluctant%to%risk%such%a%large%investment%without%a%strong%customer%base.%On%the%other%hand,%though,%fleets%are%typically%not%willing%to%purchase%NGVs%without%sufficient%fueling%infrastructure%in%place.%This%cycle%is%an%impediment%to%the%development%of%the%NGV%market.%The%development%rate%of%the%NGV%market,%though,%has%been%increasing%due%to%the%plunging%price%of%natural%gas.%With%the%availability%of%new%models,%as%well%as%incentives,%policies,%and%cheap%fuel,%growth%in%the%NGV%market%is%expected%to%increase%10%%per%year%through%2019.33%By%2035,%though,%it’s%anticipated%that%only%1.7%percent%(260,000%vehicles)%of%the%total%stock%of%heavy%trucks%on%the%road%will%run%on%natural%gas.34%%%

CNG Outlook Compressed%natural%gas%infrastructure%has%developed%at%a%fairly%rapid%pace%in%the%public%sector,%and%this%trend%looks%to%continue%in%the%Southeast%region%as%well%as%nationally.%Figure%17%below%is%a%map%of%all%public%and%private%access%CNG%stations%in%the%United%States%along%with%any%stations%expected%to%be%built%post%2013.%%

%%%%%%%%%%%%%%%%%%%%%%

Figure%17:%CNG%Fueling%Stations Source:http://www.eia.gov/todayinenergy/detail.cfm?id=6050#tabs_AltTransportFuelStationsG2%

%%%%%%%

33%http://www.usatoday.com/story/money/cars/2013/03/09/naturalGgasGvehiclesGinroads/1967881/%34%Annual$Energy$Outlook$2010$with$Projections$to$2035.$EIA,%http://www.eia.gov/oiaf/archive/aeo10/natgas_fuel.html.%May%11,%2010.%%



Table%11:%Future%Natural%Gas%Vehicles%and%Engines% %%%%%%%

Atlanta%Gas%Light%announced%on%October%24,%2013%that%it%signed%agreements%to%open%two%more%publicGaccess%CNG%stations%in%Georgia.%With%these%two%stations%in%development,%Atlanta%Gas%Light%is%now%in%the%process%of%constructing%seven%CNG%stations%in%Georgia,%including%four%in%metro%Atlanta.%More%information%on%this%program%can%be%found%at%www.aglc.com/naturalGgasGvehicles.%In%addition%to%CNG%infrastructure,%OEMs%have%begun%including%more%CNG%vehicles%and%CNGGcapable%vehicles%as%part%of%their%product%line.%Table%11%above%shows%CNG%vehicles%and%engines%to%be%released%in%2015.%%

LNG Outlook Two%companies%are%spearheading%the%development%of%LNG%stations%in%the%United%States—Clean%Energy%Fuels%Corporation%and%Blu.%In%total,%these%companies%are%responsible%for%33%of%the%42%public%LNG%stations%operating%in%the%United%States.%%

%Clean%Energy%Fuels%is%responsible%for%a%program%called%America’s%Natural%Gas%Highway,%which%is%a%network%of%LNG%truck%stations%located%on%major%interstates%and%in%metropolitan%areas%serving%heavyGduty%trucks%traveling%across%the%country.%This%program%included%a%firstGphase%of%constructing%150%new%fueling%stations%across%the%country%by%yearGend%2013.%Three%stations%will%be%constructed%in%Alabama%while%two%each%will%be%built%in%Georgia%and%Tennessee.%Clean%Energy%and%its%partners%expect%the%opening%of%these%LNG%stations%to%coincide%with%the%arrival%of%new%natural%gas%truck%engines%that%will%be%extremely%useful%for%heavyGduty%truck%applications.35%For%Class%8%trucks%in%particular,%the%11.9Gliter%Cummins%Westport%engine%is%creating%better%access%into%the%LNG%engine%market.%Cummins%Westport%also%offers%an%8.9Gliter%engine.%%Meanwhile,%Blu%is%creating%a%national%network%of%LNG%fueling%stations%in%attempt%to%lower%fueling%costs,%help%achieve%energy%independence,%and%create%a%more%environmentally%conscious%America.%Blu%presently%has%14%public%LNG%stations%operating%in%the%United%States,%with%five%more%under%construction.%22%additional%stations%are%to%be%built%primarily%in%the%Pacific%Northwest%and%across%the%Midwest%region.36%%

%Figure%18%shows%all%public%and%private%LNG%stations%in%the%United%States%along%with%stations%to%be%built%post%2013.%%

%%%%%%%

%%

35%America’s%Natural%Gas%Highway:%The%Clean%Energy%Solution.%Clean$Energy.$www.cleanenergyfuels.com%36%http://blulng.com/%%

Product%Expected%Model%

Year%General%Motors%Chevrolet%Silverado%HD%BiGFuel% 2015%General%Motors%Chevrolet%Sierra%HD%BiGFuel% 2015%General%Motors%Chevrolet%Impala%BiGFuel% 2015%Westport%HPDI%2.0% 2015%



%%%%%%%%%%%%%%%%%%%%

Figure%18:%LNG%Fueling%Stations Source:%http://www.eia.gov/todayinenergy/detail.cfm?id=6050#tabs_AltTransportFuelStationsG6%

%%

In%addition%to%the%new%stations%and%new%engines,%General%Electric%and%Clean%Energy%have%announced%plans%to%build%two%natural%gas%liquefaction%plants.%Because%LNG%requires%bulk%transport%from%liquefaction%plants%to%fueling%stations,%the%construction%of%new%plants%will%accelerate%the%growth%of%the%LNG%market.%The%two%new%plants%are%expected%to%be%built%somewhere%in%the%Midwest%and%Northeast,%respectively.%

%Although%LNG%trucks%are%around%25%%more%expensive%than%their%diesel%equivalents%due%to%onboard%cryogenic%fuel%tanks,%return%on%investment%has%occurred%in%as%soon%as%12%months%for%trucks%traveling%120,000%miles%annually.%Fleets%that%travel%less%can%be%expected%to%see%return%on%investment%around%five%years%down%the%road.%Conveniently,%though,%LNG%is%best%suited%for%longGhaul%trucks%that%need%to%travel%considerable%distances%on%one%tank%of%fuel,%which%makes%reaching%this%120,000Gmile%quota%manageable.%%

%UPS%is%one%company%that%continues%to%expand%its%use%of%LNG.%In%October%2013,%the%company%announced%its%plan%to%invest%$50%million%to%build%nine%additional%LNG%stations.%13%stations%in%total%are%expected%to%be%operating%by%yearGend%2014.%This%new%infrastructure%will%support%1,000%UPS%LNG%tractors%set%to%displace%more%than%24%million%gallons%of%diesel%fuel%per%year.37%%

% %

37%http://www1.eere.energy.gov/cleancities/news_detail.html?news_id=20987%%



Section 9: Natural Gas Case Studies %This%section%of%the%workbook%includes%case%studies%of%fleets%from%the%fourGstate%region%that%have%successfully%deployed%natural%gas%vehicles.%Case%studies%are%included%from%the%following%fleets:%

• City%of%Athens%(AL)%

• City%of%Covington%(GA)%

• Hawkins%County%Gas%Utility%(TN)%

• Morgan%County%Schools%(AL)%

• Scott%Appalachian%Industries%(TN)%

• Snapping%Shoals%EMC%(GA)%




!

!

CNG$Fleet$Case$Study$

City%of%Athens%(AL)%

Fleet%Facts%Organization:%%%City$of$Athens$&$Athens$Gas$Department$(AL)$

%Mayor,%City%of%Athens:%Ronnie$Marks$%Industry%Type:%Government$

%Conversions%Began:%2012$

%Vehicles%Converted:%13$

%Estimated%Annual%CNG%usage:%55,000$GGEs$%Estimated%Annual%Fuel%Cost%Savings%Approximately:%$95,000$%CNG%Fueling%Infrastructure:%Public$station$fast$fill$fueling$and$Athens$Gas$Department$time$fill$

Overview%$

The$City$of$Athens,$like$most$other$local$governments,$has$been$hit$

hard$by$the$rising$cost$of$fuel$for$everything$from$police$cars$to$

garbage$trucks.$In$2008,$Athens$Gas$Department$Manager$Steve$Carter$approached$the$city$about$converting$its$larger$fleet$vehicles$

to$CNG.$Carter$was$convinced$CNG$would$save$the$city$money.$

“Compressed$natural$gas$is$cheaper$than$gasoline$and$diesel,$and$it$

is$a$cleaner$fuel,$which$means$less$maintenance,”$Carter$said.$To$

date$the$city$has$purchased$or$converted$a$total$of$13$vehicles$that$are$operated$or$can$be$operated$on$CNG,$and$currently$has$three$

more$on$order.$

$

Program%Participation%%Carter$proposed$that$the$city$build$a$public$access$fast$fill$CNG$

station$as$well$as$two$timeUfill$dispensers$to$fuel$city$vehicles$at$Public$Works$and$“Leak$City,”$the$utilities$training$site.$The$

$614,360$proposal$to$construct$the$infrastructure$was$funded$by$the$Athens$Gas$Department$and$received$approval$of$Athens$Mayor$

Ronnie$Marks,$Athens$Utilities$General$Manager$Gary$Scroggins$and$the$Athens$City$Council.$$

$The$public$access$station$opened$in$September$2013$and$serves$the$

city’s$fueling$needs$and$those$of$commercial$fleets$and$motorists$in$the$area$as$well$as$traveling$on$Interstate$65.$Phoenix$Energy$Corp.,$

an$Alabama$Company,$built$the$station$and$converted$the$vehicles.$$

Results%

For$taxpayers,$Athens’$use$of$CNG$will$mean$significant$savings$for$the$city$in$fuel$costs$and$also$vehicle$

maintenance$costs.$In$just$one$example,$Fire$Chief$Tony$Kirk$has$reported$spending$just$12$cents$per$mile$

on$average$for$his$CNG$vehicle$versus$23$cents$per$mile$on$gasolineUoperated$vehicles.$Fleets$and$

consumers$using$the$fast$fill$public$access$station$also$save$at$the$pump.$As$of$May$2014,$CNG$is$priced$at$just$$1.89$per$gasoline$gallon$equivalent.$

The$City$of$Athens$has$built$the$

first$CNG$station$on$the$

Interstate$65$corridor$between$

Nashville$and$Birmingham$

!

!

!

For$more$information$on$this$and$other$alternative$fuel$and$advanced$technology$vehicle$programs$contact$Mark$Bentley,$Executive$Director$at$the$Alabama$Clean$Fuels$Coalition,$by$phone:[email protected].$ACFC$is$a$designated$Clean$Cities$Coalition$by$the$U.S.$Department$of$Energy.$

For$specific$information$regarding$the$Athens$CNG$station$contact:$Mason$Matthews,$Project$Manager.$Phone:[email protected]$

The$benefits$go$beyond$dollars$and$cents.$Athens’$leaders$also$have$the$satisfaction$of$knowing$they$are$using$fuel$that$promotes$a$cleaner$environment,$domestic$jobs$and$greater$energy$independence.$“The$Athens$Gas$Department,$Mayor$Ronnie$Marks$and$the$Athens$City$Council$are$leading$the$way$in$North$Alabama$with$regards$to$green$energy$and$independence$from$foreign$oil$for$the$city’s$energy$needs,”$Carter$said.$The$city’s$efforts$have$received$positive$attention$in$the$press$and$from$organizations$such$as$the$Alabama$League$of$Municipalities,$which$honored$Athens$with$a$Quality$of$Life$Award.$“We$are$excited$to$be$recognized$by$the$League$of$Municipalities,”$Mayor$Marks$said.$“To$receive$such$an$award$validates$the$great$work$that$is$being$done$in$our$community$with$CNG.”$$

“Athens$has$demonstrated$how$cities$can$promote$the$use$of$alternative$fuels$and$reap$benefits$within$their$own$communities$and$beyond.$The$leadership$demonstrated$in$Athens$is$worthy$of$recognition,”$said$Mark$Bentley,$Executive$Director$of$the$Alabama$Clean$Fuels$Coalition,$a$U.$S.$Department$of$Energy$designated$Clean$Cities$coalition$serving$Alabama.$$

Lessons%Learned%and%Next%Steps%

The$City$of$Athens$believes$there$are$viable$alternative$fuel$options$available$today$for$fleets$of$all$sizes;$compressed$natural$gas$just$happened$to$be$the$best$fit$for$them.$Also,$large$fleet$vehicles$can$help$pay$for$a$fastUfill$CNG$station.$Once$a$fastUfill$station$is$complete,$the$remainder$of$the$fleet$can$benefit.$Furthermore,$Marks$found$the$CNG$industry$to$be$very$welcoming.$Station$operators,$fleet$owners,$private$companies$involved$with$CNG,$and$even$individual$CNG$drivers$have$been$very$helpful.$Athens$found$people$in$this$industry$to$be$passionate$about$alternative$fuels$and$were$very$willing$to$help.$

The$City$of$Athens$has$committed$to$adding$CNG$vehicles$to$the$fleet$as$older$vehicles$are$retired.$This$makes$financial$sense$for$taxpayers$and$ratepayers,$but$at$the$same$time$they$are$leading$by$example.$Their$hope$is$to$see$more$area$fleets$use$compressed$natural$gas.$

Summer$2014$

!

CNG$Station$Case$Study$

City!of!Covington!(GA)!

Fleet%Facts%Organization:%%%City%of%Covington%(GA)%

%City%Finance%Director:%Randy%Conner%

%Industry%Type:%Government%

%Fueling%Infrastructure:%CNG%station%

Overview%%

The%City%of%Covington%(Georgia)%opened%the%first%municipally%built%

CNG%station%in%the%state.%The%station%opened%in%March%2014%and%is%

available%for%use%by%the%general%public.%

%

Project%Planning%

The%City%of%Covington%began%researching%options%for%alternative%

fuels%in%2011.%The%city%operated%its%own%natural%gas%distribution%

system%and%has%provided%natural%gas%service%in%Covington%and%

Newton%County%since%1956%and%is%partnered%with%the%Municipal%Gas%

Authority%of%Georgia.%

The%city%initially%considered%converting%their%entire%vehicle%fleet%at%once%and%exploring%options%for%both%

electric%vehicles%and%natural%gas%vehicles.%Randy%Conner,%City%Finance%Director,%was%tasked%with%researching%

the%options.%Early%in%his%efforts,%Mr.%Conner%realized%the%city%would%not%be%able%to%convert%all%their%vehicles%

at%one%time—there%were%simply%not%options%for%all%the%vehicles%in%their%fleet.%He%narrowed%the%focus%to%

natural%gas%vehicle%capabilities%and%potential%savings.%The%city%was%interested%not%only%in%options%for%their%

municipal%fleet,%but%also%for%their%school%bus%fleet.%

Mr.%Conner%undertook%a%very%proactive%research%strategy,%visiting%with%and%talking%to%other%municipalities%

that%had%introduced%alternative%fuel%vehicles%into%their%fleets.%He%reached%out%to%a%number%of%jurisdictions%in%

North%Carolina,%including%Arden,%Asheville,%Hickory,%and%Raleigh/Durham,%Thomasville,%Georgia%(which%is%

also%a%member%of%the%Municipal%Gas%Authority%of%Georgia),%and%the%school%system%in%Leon%County,%Florida.%

Based%on%extensive%research,%the%City%of%Covington%ultimately%decided%to%construct%a%compressed%natural%

gas%fueling%facility.%%

Project%Motivation%and%Implementation%

The%utility%became%interested%in%converting%its%fleet%to%natural%gas%because%of%air%quality%concerns%(the%city%is%

located%within%the%Atlanta%nonattainment%area)%and%a%desire%to%decrease%fuel%costs.%The%City%of%Covington%

ultimately%decided%to%build%a%compressed%natural%gas%fueling%facility%that%would%not%only%support%the%city’s%

deployment%of%natural%gas%vehicles,%but%would%also%accommodate%vehicles%from%Newton%County%and%the%

school%system.%Once%the%city%made%this%decision,%it%became%clear%that%they%would%also%have%the%ability%to%

support%transportation%fueling%for%the%general%public%as%well%as%commercial%and%industrial%customers.%The%

city%designed%a%fueling%facility%that%could%accommodate%eight%vehicles%and%would%be%constructed%on%two%and%

a%half%acres%of%land.%%

Results!$What$began$as$plans$for$a$project$to$support$a$city$fleet’s$desire$to$convert$to$a$cleaner$alternative$fuel$has$grown$to$a$regional$project.$

$$

Lessons!Learned!and!Next!Steps!

This$project$has$garnered$support$from$throughout$the$community,$which$bodes$well$for$the$future$success$of$natural$gas$vehicle$deployment$in$the$City$of$Covington$and$Newton$County.$The$city$council$has$since$set$aside$$500,000$for$vehicle$purchases.$The$city$has$immediate$plans$to$replace$a$number$of$vehicles$with$a$natural$gas$option,$including$six$standard$service$crew$cab$trucks.$Future$plans$include$the$purchase$of$a$CNG$garbage$truck$and$large$service$trucks.$$

Officials$from$the$city$are$also$talking$to$the$school$system$about$CNG$bus$purchases.$School$Board$members$and$the$county’s$school$transportation$director$recognize$the$value$of$alternative$fuel$vehicle$options$to$help$improve$air$quality$and$minimize$the$emission$impacts$from$idling$buses.$Officials$will$need$to$address$the$ability$to$fuel$CNG$buses$garaged$at$several$locations$throughout$the$county,$perhaps$through$the$construction$of$a$second$CNG$station.$

The$city’s$utility$is$also$planning$for$the$future;$the$utility$is$considering$options$to$offer$incentives$to$the$city’s$utility$customers.$In$addition$to$pursuing$CNG,$the$City$of$Covington$is$also$interested$in$electric$vehicle$options$and$has$made$plans$to$deploy$fast$charge$infrastructure.$

$$

For$more$information$on$this$and$other$alternative$fuel$and$advanced$technology$vehicle$programs$contact$Don$Francis,$Coordinator$at$Clean$Cities$–$Georgia,$by$phone:[email protected].$Clean$Cities$–$Georgia$is$a$designated$Clean$Cities$Coalition$by$the$U.S.$Department$of$Energy.$

For$specific$information$regarding$the$City$of$Covington$project,$contact$Randy$Conner,$City$Finance$Director,$by$phone:[email protected].$

Summer%2014%

!

!

CNG/Propane,Fleet,Case,Study,

Hawkins(County(Gas(Utility((TN)(

Fleet(Facts(Organization:(((Hawkins,County,Gas,Utility,(TN),(General(Manager:(Patrick,Lund,(Industry(Type:(Utility,,(Conversions(Began:(2011,(Vehicles(Converted:(Two,(Estimated(Annual(CNG/Propane(Usage:(800C1,000,gallons,(!

Overview((In,1994,,Hawkins,County,Gas,Utility,(HGCU),in,Rogersville,,Tennessee,started,using,propane,as,an,alternative,fuel,for,their,vehicles.,After,years,of,onCandCoff,alternative,fuel,usage,,the,County,reinstituted,their,propane,program,in,2011,with,the,purchase,of,a,Ford,F150,propane,vehicle.,Two,years,later,,the,County,purchased,a,brand,new,CNG,Dodge,2500,4x4,to,add,to,their,fleet.,,

Program(Participation((This,program,was,not,supplemented,by,any,grant,funding,,and,Hawkins,County,did,not,receive,assistance,from,their,local,Clean,Cities,coalition.,An,onCstaff,mechanic,did,all,conversion,work,inChouse.,,

Project(Motivation(and(Implementation((HGCU’s,main,motivation,to,do,this,project,stemmed,from,their,desire,for,energy,security,and,economic,development.,General,Manager,Patrick,Lund,views,using,propane,and,natural,gas,as,practical;,he,knows,he,can’t,convert,every,vehicle,in,the,fleet,,but,certain,vehicles,are,set,up,well,for,conversion.,Since,HGCU,already,had,the,alternative,fuels,in,their,possession,,converting,the,two,vehicles,was,a,fairly,seamless,process.,,

Hawkins,County’s,project,technically,started,over,20,years,ago.,Over,time,,however,,their,converted,vehicles,were,taken,out,of,service,as,the,technology,became,obsolete.,In,2011,,the,County,again,became,interested,in,alternative,fuels,as,conventional,fuel,prices,began,to,rise.,The,fleet,needed,dedicated,trucks,with,bottomCmounted,fuel,tanks,in,order,to,maximize,bed,space,to,haul,equipment.,They,looked,at,the,PRINs,system,,converted,a,truck,to,dual,fuel,,and,were,immediately,impressed.,The,CNG,conversion,was,more,expensive,(around,$35,000),,however,,it,was,very,successful.,,

Fortunately,,the,County,did,not,experience,many,barriers,throughout,the,project’s,implementation.,The,only,hiccups,they,dealt,with,were,a,minor,oil,leak,and,a,defective,compressor;,both,issues,were,fixed,rather,quickly.,,

!

!

!

For,more,information,on,this,and,other,alternative,fuel,and,advanced,technology,vehicle,programs,contact,Kristy,KeelCBlackmon,,Project,Facilitator,at,the,East,Tennessee,Clean,Fuels,Coalition,,by,phone:,865.974.9665,or,via,email,at,[email protected].,The,East,Tennessee,Clean,Fuels,Coalition,is,a,designated,Clean,Cities,Coalition,by,the,U.S.,Department,of,Energy.,

Results(

In,completing,this,project,,Hawkins,County,successfully,converted,two,vehicles,for,their,fleet.,The,drivers,say,the,vehicles,run,better,on,propane,than,gasoline,,and,that,they,prefer,driving,the,propane,vehicles.,Lund,approximates,that,the,county,saves,800C1,000,gallons,of,gasoline,each,year,due,to,alternative,fuel,use.,In,terms,of,cost,savings,,the,County,estimates,they,are,saving,a,bit,on,oil,changes,with,the,CNG,vehicle,because,the,oil,is,changed,every,8,000C10,000,miles,instead,of,every,3,000C5,000,miles.,Lund,says,the,oil,still,looks,very,new,even,after,5,000,miles.,The,propane,truck,,however,,has,a,normal,maintenance,schedule,because,“it,used,to,run,on,gas”,according,to,Lund.,Hawkins,County,estimates,the,payback,period,to,be,1.5,years,for,the,propane,vehicle,and,6C8,years,for,the,CNG,vehicle.,,

Lund,expects,that,Hawkins,County,will,start,advertising,what,they’re,doing,with,alternative,fuels,in,the,near,future.,Their,conversions,have,created,opportunities,for,them,to,begin,discussing,CNG,for,fleet,vehicles.,Lund,believes,that,cities,are,becoming,interested,in,alternative,fuels,and,notes,that,the,City,of,Kingsport,said,they,would,look,at,CNG,buses,if,the,utility,could,build,a,fueling,station,for,them.,,HCGU,believes,alternative,fuels,are,good,for,the,utility,,the,environment,,and,the,community.,,

Lessons(Learned(and(Next(Steps(

Having,a,knowledgeable,,inChouse,propane,supervisor,made,the,conversion,process,for,propane,very,easy.,The,biggest,hindrance,the,County,experienced,with,CNG,,though,,has,been,the,upfront,compressor,cost,and,the,lack,of,small,compressor,availability.,,

In,terms,of,future,plans,for,Hawkins,County,,the,chairman,of,the,board,has,a,stated,interest,in,acquiring,more,CNG,vehicles;,when,the,time,is,right,,they,plan,to,acquire,them.,The,board,is,putting,a,preference,on,CNG,due,to,its,pricing,stability.,Propane,is,typically,somewhat,volatile,at,market,,and,the,County,feels,more,comfortable,longCterm,with,natural,gas,prices.,Also,,when,looking,to,purchase,more,bobtails,,Hawkins,County,would,like,to,go,back,to,propane,with,a,liquid,injection,system,to,provide,more,power,and,torque.,The,County,currently,has,6C8,vehicles,that,are,eligible,to,be,converted,,and,they,are,interested,in,doing,so.,They,are,also,interested,in,Ford’s,NGV,model,as,an,addition,to,their,fleet.,

For,specific,information,regarding,the,Hawkins,County,project,,contact,Patrick,Lund,,General,Manager,,by,phone:,423.358.339,or,via,email,at,[email protected],

Summer,2014,

!

!

CNG/Propane,Fleet,Case,Study,

Morgan'County'Schools'(TN)'

Fleet'Facts'Organization:'''Morgan,County,Schools,(TN),'Transportation'Director:'Keith,Duncan,'Industry'Type:'School,,'Conversions'Began:'2013,'Vehicles'Converted:'Four,!!

Overview''In,2013,,Morgan,County,Schools,in,Wartburg,,Tennessee,added,four,alternative,fuel,vehicles,to,their,fleet,of,school,buses;,three,of,these,buses,run,on,propane,while,a,fourth,runs,on,CNG.,,

Program,Participation''Morgan,County,Schools,did,not,receive,a,grant,for,this,project;,project,funding,was,justified,based,on,the,expected,ROI,from,fuel,savings.,The,East,Tennessee,Clean,Fuels,Coalition,assisted,in,this,project,by,providing,payback,information,through,ROI,spreadsheets.,They,also,helped,Morgan,County,Schools,organize,their,grand,opening,event,to,publicize,the,new,alternative,fuel,buses.,,Also,,Citizens,Gas,supplies,the,fuel,for,the,County’s,natural,gas,bus.,

Though,the,timeline,of,this,project,(1,year),was,quite,quick,compared,to,other,types,of,capital,projects,,the,process,was,somewhat,timeWconsuming.,Duncan,and,other,members,of,the,management,team,engaged,in,a,number,of,meetings,and,demonstrations,to,fully,evaluate,the,equipment,and,ROI,justification.,,

Duncan,went,on,to,say,,“It,is,a,time,consuming,process,and,the,reason,is,,where,do,you,get,those,numbers,from?,Everyone,has,a,projection,,but,how,do,you,really,know,until,you,take,a,bus,and,put,it,on,a,route?”,From,start,to,finish,,rather,than,taking,manufacturer,claims,for,granted,,the,Morgan,County,Schools,management,team,was,careful,to,fully,evaluate,operating,costs,and,concerns,prior,to,making,purchasing,decisions.”,

The,biggest,barrier,that,Morgan,County,encountered,throughout,the,project,was,safety.,Duncan,said,,“Safety,is,the,big,key,word.,It,is,hard,to,sell,people,on,an,alternative,fuel,after,relying,on,diesel,for,so,many,years.,Many,people,are,worried,about,the,threat,of,fire,or,explosion.,Early,on,,administrators,,board,members,,and,other,members,of,upper,management,were,concerned,that,alternative,fuels,might,impact,the,safety,of,students.,Addressing,popular,concerns,and,misconceptions,was,essential,,and,without,proper,training,and,education,,this,project,would,not,have,been,possible.”,

Project'Motivation'and'Implementation'

When,asked,in,interviews,about,the,goal,of,Morgan,County’s,alternative,fuel,projects,,Transportation,Director,Keith,Duncan,replied,,“There,is,only,one,answer,,and,that’s,cost,savings.”,Though,cleaner,emissions,,the,development,of,new,alternative,fuel,enterprises,in,Tennessee,,and,lower,emissions,around,schools,are,all,outstanding,benefits,of,propane,and,CNG,use,,Morgan,County,School’s,greatest,motivator,for,this,project,has,been,the,cost,savings,expected,and,achieved,through,lower,fuel,costs.,

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Results',As,was,the,intent,,cost,savings,has,been,the,primary,accomplishment,of,this,project.,While,the,originally,advertised,payback,period,for,the,CNG,bus,was,seven,years,,real,numbers,show,the,ROI,to,be,15,years.,Purchasing,propane,buses,,meanwhile,,creates,no,more,overhead,than,buying,a,dieselWpowered,bus,,so,there,is,no,real,,significant,payback,period,–,the,savings,are,immediate.,The,fuel,savings,essentially,equal,the,total,payback.,Data,on,petroleum,savings,and,displacement,,emission,reductions,,and,cost,savings,are,not,yet,available.,,In,terms,of,nonWfinancial,benefits,for,Morgan,County,,85%,of,drivers,have,given,good,feedback,on,the,alternative,fuel,buses.,The,vehicles,create,a,quieter,,calmer,ride,for,the,students,,and,the,bus,riders,are,no,longer,exposed,to,as,much,pollution.,,

Lessons'Learned'and'Next'Steps',According,to,Duncan,,there,is,one,lesson,learned,that,simply,outshines,all,others.,For,their,school,system,,he,says,natural,gas,is,not,a,viable,alternative,fuel,option.,The,primary,concern,is,overhead.,It,is,very,hard,for,a,school,district,,based,on,its,type,of,vehicle,use,,to,overcome,and,recoup,the,incremental,and,infrastructure,costs,of,CNG.,,,Propane,,meanwhile,,makes,a,great,case,for,use,in,school,systems.,Propane,buses,are,smoother,,quieter,,and,safer,because,you,can,hear,more,of,what,is,going,on,in,the,bus,compared,to,their,diesel,counterparts.,“Propane,is,the,way,to,go,if,you’re,going,to,switch,to,an,alternative,fuel,”,says,Duncan.,,Future,alternative,fuel,plans,in,Morgan,County,are,dependent,on,budgeting,concerns,independent,of,alternative,fuel,use.,If,Morgan,County,purchases,any,more,buses,in,the,next,two,to,three,years,they,will,likely,be,propane,buses.,

For,more,information,on,this,and,other,alternative,fuel,and,advanced,technology,vehicle,programs,contact,Kristy,KeelWBlackmon,,Project,Facilitator,at,the,East,Tennessee,Clean,Fuels,Coalition,,by,phone:,865.974.9665,or,via,email,at,[email protected].,The,East,Tennessee,Clean,Fuels,Coalition,is,a,designated,Clean,Cities,Coalition,by,the,U.S.,Department,of,Energy.,

For,specific,information,regarding,the,Morgan,County,project,,contact:,Keith,Duncan,,Transportation,Director.,Phone:,423.539.3222,or,via,email,at,[email protected],

Summer,2014,

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Fleet%Facts%Organization:%%%Scott%Appalachian%Industries%(TN)%%Executive%Director:%Larry%West%%Industry%Type:%Healthcare%Service%Agency%%Government%%Conversions%Began:%2010%%Vehicles%Converted:%Seven%CNG%Ford%F250/350s%%CNG%Fueling%Infrastructure:%Scott%County%CNG%Station%%

Overview%

In%2010,%Scott%Appalachian%Industries%(SAI)%built%a%public%CNG%station%in%Scott%County,%Tennessee.%Quickly%after%construction%on%the%fueling%station%began,%the%company%converted%seven%shuttle%buses%to%biMfuel;%two%were%converted%through%BAF,%two%through%AltechMEco,%and%three%inMhouse.%SAI%is%converting%another%Ford%F350%to%biMfuel%CNG.%

Program%Participation%

The%station%and%vehicle%conversions%were%funded%by%SAI.%

Project%Motivation%and%Implementation%

SAI’s%enthusiasm%for%this%project%started%with%their%executive%director,%Larry%West.%He%stated,%“We%should%demonstrate%how%to%save%money%using%CNG.%We%should%show%that%we’re%willing%to%do%it%ourselves.”%West%had%prior%experience%working%with%CNG%from%using%two%NGVs%in%the%mid%80s.%He%likes%the%fuel%and%decided%to%take%the%opportunity%to%help%it%grow.%%

West%led%the%effort%in%building%Scott%County’s%first%CNG%fueling%station.%The%county%decided%to%build%a%public%station%instead%of%a%private%station%to%assure%that%all%citizens%have%access%to%CNG.%The%build%and%design%of%the%CNG%fueling%station%began%in%2010%and%took%about%a%year%to%complete.%%

SAI%converted%their%first%two%vehicles%to%dedicated%natural%gas%through%BAF%in%2010%shortly%after%the%fueling%station%was%built.%They%converted%their%next%two%vehicles%through%AltechMEco%in%the%same%year.%All%subsequent%conversions%have%been%completed%inMhouse%and%all%future%conversions%will%continue%to%be%converted%inMhouse.%

SAI%encountered%a%few%barriers%with%this%project.%The%costs%associated%with%vehicle%maintenance%were%higher%than%expected,%and%the%demand%for%CNG%fuel%was%lower%than%expected.%EPA%rules%and%regulations%were%also%unclear,%which%made%the%process%of%converting%the%vehicles%more%difficult.%%

CNG%Fleet%Case%Study%

Scott%Appalachian%Industries%(TN)%!

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Results%Executive%Director%Larry%West%is%very%satisfied%with%the%payback%on%SAI’s%shuttle%buses.%He%estimates%that%by%the%end%of%the%buses’%lifetime,%SAI%will%have%saved%$5,000%M%$10,000%on%each%vehicle.%If%they%run%the%buses%longer%than%200,000%miles%(which%they%anticipate),%the%savings%may%be%$5,000%higher.%%%Despite%the%overall%success%with%the%vehicles,%the%CNG%fueling%station%has%not%been%as%successful%as%West%had%hoped.%There%have%been%a%few%other%conversions%around%the%Scott%County%area%by%the%local%residents,%which%has%helped%the%station,%however,%the%number%of%customers%is%not%enough.%West%anticipates%he%will%have%to%raise%the%price%of%the%natural%gas%to%offset%the%cost%of%running%the%station.%Although%the%station%is%not%doing%as%well%as%hoped,%SAI%and%residents%are%still%saving%money%by%purchasing%CNG%over%petroleum.%%%SAI%still%sees%much%support%and%enthusiasm%from%the%local%people.%The%amount%of%petroleum%being%reduced%grows%each%year,%and%West%expects%the%station%to%achieve%greater%success%in%the%future.%

Lessons%Learned%and%Next%Steps%SAI%will%be%doing%all%future%conversions%inMhouse.%Both%BAF%and%AltechMEco%require%all%maintenance%to%be%done%in%their%facilities,%which%is%an%issue%as%BAF%is%located%in%Dallas%and%AltechMEco%is%located%in%Asheville.%West%learned%throughout%the%process%that%converting%fleet%vehicles%inMhouse%cut%the%overall%project%cost%in%half,%with%the%only%downside%being%that%these%conversions%are%not%EPA%certified.%SAI%acquired%four%minivans%from%DOT,%and%West%notes%that%the%conversion%kit%they%require%must%be%EPAMapproved.%However,%SAI%has%F250s%and%F350s%and%plans%on%converting%all%of%them.%%

As%for%the%station,%West%stated,%“To%build%a%station,%you%need%to%have%a%big%demand.%The%bigger%the%demand%the%more%practical%it%is%to%build%the%station.”%SAI%expects%to%see%more%success%at%the%station%as%soon%as%gas%prices%go%up%again.%West%says,%“As%the%need%for%CNG%grows,%we’ll%have%to%expand%the%station%and%invest%more%money%to%make%it%stronger.%When%gas%prices%jump%again,%we’re%sitting%with%a%cheaper,%more%reliable%fuel.”%

For%more%information%on%this%and%other%alternative%fuel%and%advanced%technology%vehicle%programs%contact:%Kristy%KeelMBlackmon,%Project%Facilitator%at%the%East%Tennessee%Clean%Fuels%Coalition,%by%phone:%865.974.9665%or%via%email%at%[email protected].%%The%East%Tennessee%Clean%Fuels%Coalition%is%a%designated%Clean%Cities%Coalition%by%the%U.S.%Department%of%Energy.%

For!specific!information!regarding!the!SAI!project,!contact:!Larry!West,!Executive!Director.!Phone:!423.663.9300!

Summer%2014%

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CNG$Fleet$Case$Study$

Snapping'Shoals'EMC'(GA)'!

Fleet'Facts'Organization:'''Snapping$Shoals$Electric$Membership$Corporation$(GA)$'Director'of'Fleet'Services:'Jeff$Morgan$'Conversions'Began:'2010$'Vehicles'Converted:'11$'Estimated'Petroleum'Displacement:'290,887$gallons$as$of$March$2014$'Estimated'Fuel'Cost'Savings'Approximately:'$550,000J$600,000$'CNG'Fueling'Infrastructure:'OnJsite$fast$fill$fueling,$651$gallons$of$total$storage$

Overview'$Snapping$Shoals$Electric$Membership$Corporation$(EMC)$first$began$adding$alternative$fuel$vehicles$to$their$fleet$in$1998.$The$utility$started$by$purchasing$23$dedicated$Ford$vehicles,$including$a$combination$of$FJ150s,$FJ250s,$EJ250s,$EJ350s,$and$Crown$Victorias,$all$of$which$ran$on$compressed$natural$gas$(CNG).$In$2010,$Snapping$Shoals$converted$11$Chevrolet$1500s$and$2500s$to$run$on$a$biJfuel$CNG$system.$

Program'Participation'

Snapping$Shoals$EMC$did$not$receive$grant$money$for$their$CNG$initiatives;$they$identified$internal$funding$to$support$their$efforts.$The$utility$conducted$their$own$research,$solicited$bids,$and$completed$the$vehicle$conversions$inJhouse.$The$vehicle$conversion$costs$were$offset$through$the$lower$cost$of$fuel.$Equipment$for$the$project$was$purchased$from$Atlanta$Gas$Light.$$

Project'Motivation'and'Implementation'

At$the$time$Snapping$Shoals$began$converting$their$fleet,$they$were$covered$by$the$Georgia$Clean$Fuel$Fleet$Program$which$required$they$meet$low$emission$vehicle$purchase$requirements.$As$a$utility,$they$were$also$subject$to$the$requirements$of$the$Energy$Policy$Act$(EPAct).$In$their$efforts$to$meet$the$requirements,$they$initially$decided$to$try$CNG$as$a$vehicle$fuel$after$considering$other$options$available$at$that$time.$!

Although$Snapping$Shoals$was$prompted$by$regulatory$requirements$to$implement$alternative$fuels$in$their$fleet,$Director$of$Fleet$Services$Jeff$Morgan$believes$it$was$a$good$decision$for$their$organization.$By$deploying$CNG,$Snapping$Shoals$has$achieved$cost$savings$and$lower$emissions$from$the$operation$of$their$vehicles.$

While$pleased$with$their$decision$to$incorporate$CNG$into$their$daily$operations,$Snapping$Shoals$EMC$did$encounter$some$challenges$with$their$deployment.$There$was$limited$vehicle$availability$during$the$early$stages$of$Snapping$Shoals’$efforts.$Additionally,$the$CNG$tanks$had$a$somewhat$limited$lifespan.$Replacement$was$an$issue$due$to$costs$which$could$be$upwards$of$$3,500$each.$!

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Results'

Snapping$Shoals’$biggest$achievement$throughout$this$project$is$the$huge$fuel$savings;$they$have$saved$an$estimated$$550,000$J$$600,000$in$fuel$costs$since$1998.$Also,$since$midJ2002,$the$utility$has$displaced$236,347$gallons$of$petroleum.$Over$the$lifespan$of$their$deployment$of$CNG,$Snapping$Shoals$EMC$is$estimated$to$have$saved$almost$291,000$gallons$of$petroleum.$$$Additionally,$Morgan$has$been$impressed$with$how$infrequently$the$CNG$vehicles$need$to$be$serviced.$While$gas$vehicles$require$service$around$every$4,000$miles,$the$CNG$vehicles$are$typically$serviced$every$7,000$miles.$$$$$

Lessons'Learned'and'Next'Steps'

Snapping$Shoals$EMC$believes$the$biggest$advice$they$can$offer$other$fleets$looking$to$implement$similar$projects$is$to$be$aware$of$how$the$alternative$fuel$is$stored.$Fuel$storage$was$their$biggest$and$most$costly$issue$throughout$the$deployment.$For$Snapping$Shoals$EMC,$the$solution$was$a$fastJfill$station,$as$this$helped$decrease$the$station$size$and$become$more$valuable.$$In$terms$of$future$plans,$Snapping$Shoals$eventually$would$like$75%$of$their$fleet$to$run$on$dualJfuel$CNG$engines,$and$hopes$to$implement$this$soon.$

For$more$information$on$this$and$other$alternative$fuel$and$advanced$technology$vehicle$programs$contact$Don$Francis,$Coordinator$for$Clean$CitiesJGeorgia,$by$phone:[email protected].$Clean$CitiesJGeorgia$is$a$designated$Clean$Cities$Coalition$by$the$U.S.$Department$of$Energy.$

For$specific$information$regarding$the$Snapping$Shoals$project,$contact:$Jeff$Morgan,$Director$of$Fleet$Services.$Phone:$770.385.2715$or$via$email$

Summer$2014$

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