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Opportunity: Natural Gas VehiclesNatural gas vehicles are transforming our nation’s transportation sector
About NGVAmerica
NGVAmerica represents 200+ companies, LDCs, fleets, OEMS, environmental and
government organizations.
NGVAmerica is the national organization dedicated to the development of a growing, profitable, and sustainable marketplace for vehicles powered by natural gas and biomethane and for promoting the use of more natural gas in transportation… trucks, trash, transit, and even off‐road uses like HHP marine, rail, and construction/mining applications.
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NGVAmerica Members
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The Problems
Urban Emissions & Public Health
Volatility of Oil Prices
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Urban Emissions: Public Health Impacts
Source: American Lung Association, 2018
Breathing in particle pollution increases the risk of:• Asthma• Lung Cancer• Heart Disease • Premature Death
134 millionAmericans live in areas with air that is unhealthy to breathe…4 out of every 10 Americans
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Urban Emissions: Leading Sources
Source: DTF Analysis on IHS Vehicles in Operation Data, December 2015
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Natural Gas vs. Oil:• Historically 8:1 or better price advantage over
oil on a Btu basis
• Pump prices today $0.75 to $1.50 lower than diesel
Natural Gas Provides Long‐Term Fuel Cost Savings
Projected Fuel‐Price Differential(prices per $DGE)
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The Solution
Increased Natural Gas Use in Transportation:
4 Key Things to Know
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#1: Natural Gas Is Now.
Get Unmatched Emission Reduction Benefits Today
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The cleanest heavy‐duty truck engine in the world is powered by natural gas
‐ Certified in 2018 by the U.S. Environmental Protection Agency and California Air Resources Board
The Cummins Westport Ultra‐Low NOx engine is certified to a 0.02 g/bhp‐hr standard, which is:
• 90% cleaner than the EPA’s current NOx standard
• 90% cleaner than the latest available diesel engine
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In‐use testing results of heavy‐duty trucks in port applications found:
» Natural gas vehicles emitted lower NOx: The ISL G (now L9N) and ISX12N natural gas engines emitted lower NOx emissions than the EPA certification standard. Emissions decreased as the duty cycles decreased (i.e., slower speeds, idling, stop‐and‐go traffic).
» Diesel vehicles emit up to 5x more NOx: 2010 diesel engines with SCR emitted up to 5 times more NOx emissions than its EPA certification standard. Emissions increased as the duty cycles decreased.
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Fueling with natural gas reduces CO2 and greenhouse gas emissions
Source: NGVAmerica Emissions Whitepaper based on CARB LCFS*Numbers compared to diesel emissions (well‐to‐wheel)
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Renewable natural gas (RNG) provides even greater CO2 and greenhouse gas emission reductions
Source: www.arb.ca.gov/fuels/lcfs/fuelpathways/pathwaytable.htm, CARB, February 2017. Adjusted for heavy‐duty truck applications.
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What does this really mean?
NGVs + RNG offer the cleanestcommercially available path to reduce
heavy‐duty vehicle emissions15
#2: NGVs are the Sustainable Choice. Maximize the Impact of Fleet Investment Funding
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NGVs Deliver the Largest & Most Cost‐Effective NOx Emissions Reductions
Examples: Heavy Duty Trucks
Refuse Trucks
Transit Buses
School Buses
Data Source: Emission comparisons based on ANL ‐ HDVEC tool with low‐NOx engines and higher in‐use diesel emissions taken into account. Useful life, cost and mileage vary by applications. Additional details available from NGVA upon request.
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Heavy‐Duty Vehicle Emissions Calculator (HDVEC)
• Simple online tool based on AFLEET to help analyze AFVs for funding opportunities
• Examines medium‐duty & heavy‐duty vehicle:– Vehicle operation NOx & PM2.5
– Well‐to‐Wheel GHGs– Emission reduction cost effectiveness
• Contains 4 fuel/vehicle technologies:– Diesel– Electric vehicle– Propane– Natural Gas
• HDVEC available at:
afleet‐web.es.anl.gov/hdv‐emissions‐calculator/
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Depending on range and application, fleets can realize a pay back in as little as 18–24 monthsdue to:
• Lower fuel costs
• Lower maintenance costs
Incentives will reduce the pay back time frame
Louisiana Supports NGVs
• Alt Fuel Vehicle (AFV) Tax Incentives & Credits 30% of the cost of the equipment required to convert a gasoline or
diesel fueled vehicle to an AFV may be used as a tax credit
10% of the cost of a new AFV up to $2500 may be used as a tax credit
30% of the cost of the equipment required for an alternative fueling
station may be used as a tax credit
Sunsets on January 1, 2022
• Highway Excise Tax Discount ($0.16 per gallon equivalent instead of $0.20)
• Trust Settlement
Primarily Government vehicles and school buses
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NGVAmerica VW Trust Action Center
(NGVAmerica.org/vw‐trust‐action‐center)
Consent Decrees
Presentations
Fact Sheets
HDVEC Tool Access
State Details
Lead Agency / Actions
Plans & Summaries
NGVA Submissions
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29 States with Federal and StateHighway Weight Increase Allowance
• 2 states already allowed
WA, WY ‐ charge a small fee
• 10 states approved in 2016
AZ, CO, IL, KS, LA, MN, NC, NM, OK, SC
• 11 states approved in 2017
FL, IA, MI, MO, NV, NY, OR, PA, TX, VA, WI
• 6 states approved in 2018
AL, CA, NE, NJ, RI, UT
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Federal Policy – Level Playing Field for NGVs
• 5‐year extension of AFTC & infrastructure credit Amend $30,000 cap on infrastructure credit
• Adjust the 12% FET for HD natural gas trucks
• Equalize tax of LNG used in marine/inland
waterways
• Appropriations Funding/Language for NGVs
$15m for U.S. DOE NGV R&D
$50m for deployment grants for Clean Cities
2,000 lb. Weight Exemption for NGVs
Study on barriers to NGV deployment
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Federal Policy – Industry Accomplishments
• Introduction of comprehensive NGV Parity Bill (H.R. 5959) 5 year extension of $0.50/gallon AFTC
5 year extension of infrastructure tax credit
Adjust the 12% FET for HD natural gas trucks
Equalize tax of LNG used in marine/inland waterways
• Introduction of Light Duty NGV Parity Bill (S. 3226)
Recognition of NGVs in Midterm Evaluation Rulemaking
• Obtained appropriations funding/report language
• Beginning phases of NGV Road Rally with a Federal Focus
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#3: Why Wait? NGVs are Road‐Tested & Commercially Available
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NGVs are road‐tested, proven technologies that are operating worldwide
Data Source: NGVGlobal, December 2016
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About 30% of transit buses operate on NG
About 60% all new refuse trucks orders are NG
Long & short haul truck market continues transition
Rail industry piloting LNG locomotives
vessels
Every Medium‐ & Heavy‐Duty andHigh Horsepower Application
Ready‐Right‐Now Technology On and Off the Road Today.27
2018 North America Product Line
8.9L Peak Rating: 320 hp
1000 lb-ft torque66,000 lb. GVW
Transit/Refuse/MixerEPA/ARB Near Zero NOx
0.02 g/bhp-hr (90% Reduction)
6.7L Peak Rating: 240 hp
560 lb-ft torque33,000 lb. GVW
School/Shuttle bus/Yard Tractor/MD TruckEPA/ARB Low NOx
0.1 g/bhp-hr (50% reduction)
11.9L Peak Rating: 400 hp
1450 lb-ft torque 80,000 lb. GVW
Coach/Truck/RefuseEPA/ARB Near Zero NOx – 0.02
g/bhp-hr (90% Reduction)
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Cummins Westport 2018 OEM Availability
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Fleets
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IMO 2020 Compliance – LNG
January 1, 2020: all fuel used to power marine vessels must contain no more than 0.5% sulfur, down from 3.5% sulfur by mass
Three Ways to Comply
• Bunker current Heavy Fuel Oil (HFO)add expensive and unproven “scrubbers”
• Switch to compliant Marine Gas Oil (MGO)oil industry is not prepared for the demand
• Switch to LNGalready underway for many fleets – available & cost effective 31
#4: NGVs Save Money and Support Louisiana Workers. Natural Gas is a Low‐Cost, Domestically Abundant Fuel
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North America has an abundant domestic supply
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Louisiana is among top 5 natural gas producers in America
Source: U.S. Energy Information Administration, Annual Energy Outlook 2018
90% of gas produced is consumed in state
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Natural Gas Provides Fuel Price Stability
Diesel:• History of volatile price swings
• Crude oil sourced fuel from high‐conflict regions
• Commodity cost makes up 60% of sales price
Natural Gas:• Decades of affordable domestic reserves
• Natural gas sourced from North America
• Commodity cost makes up 23% of sales price
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About 30% of transit buses operate on NG
About 60% all new refuse trucks orders are NG
Long & short haul truck market continues transition
Rail industry piloting LNG locomotives
vessels
AEO 2018 Forecast Fuel Prices
2016 2017 2018 2019 2020 2025 2030 2035 2040 2045 2050
2017 Dol lars DGE
Motor Gasol ine 4/ 2.65 2.88 2.84 2.91 3.31 3.74 3.85 3.98 4.12 4.19 4.25
Diesel Fuel (di sti l l a te fuel oi l ) 6/ 2.38 2.67 2.76 2.80 3.18 3.57 3.76 3.93 4.08 4.12 4.11
Natura l Gas 7/ 1.98 2.00 1.96 1.95 1.95 1.91 1.82 1.76 1.76 1.77 1.81
Electrici ty DGE 3.93 4.31 4.53 4.77 5.21 6.59 7.57 8.42 9.25 10.15 11.18
NG Discount Gasol ine 0.67 0.88 0.88 0.96 1.36 1.82 2.02 2.22 2.36 2.42 2.44
NG Discount Diesel 0.41 0.67 0.80 0.85 1.22 1.66 1.93 2.17 2.32 2.35 2.30
Source: U.S. Energy Information Administration, Annual Energy Outlook 2018
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Natural gas retail fuel sellers LDCs C-Stores Truck Stops Grocery/Warehouse stores Leasing companies Gas exploration & production Midstream pipeline
Diverse network of natural gas station developers
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Natural gas fuel station infrastructure is continually expanding
Source: https://www.ngvamerica.org/fuel/
More than doubled past 5 years 10-12+ new stations per month
≈2,000 Natural Gas Stations
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The Solution
Increased Natural Gas Use in Transportation:
Responsible, Sustainable, Available & Domestic
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Sherrie [email protected]
303.883.5121