About Willdan Company Overview

Transcription

1 Agenda About Willdan Energy Solutions High-level Economic overview/opportunity for Compressed Natural Gas (CNG) and Renewable Natural Gas (RNG) NY Counties - Fleet studies summary and lessons learned CNG and RNG-related Incentives and Grants

2 About Willdan Company Overview National consulting and engineering firm founded in 1964 NY-based program management teams with multi-faceted expertise focused on publicsector problem solving 600 employees - including 50 in NYC and 5 in Rochester - working for over 400 federal, state, and municipal governments and utilities Areas of Expertise Program Design, Administration, and Implementation Marketing & Outreach Energy Audits & Engineering Project Sales Construction Management Experience managing all aspects of energy and sustainability programs, having delivered over 300 million kwh in annualized savings across the country Performance Management Tracking, Reporting, and Management Analysis Helping you find your green

3 Compressed Natural Gas Cost - Ranges from $ $2.70 per GGE 20% - 30% lower greenhouse gas (GHG) emissions, Lower particulate pollution and carcinogens High octane rating Nontoxic, noncorrosive, and noncarcinogenic Not a threat to soil, surface water, or groundwater Energy Security - Plentiful in U.S. Renewable natural gas from landfills and anaerobic digesters Driving Range Shorter than gasoline (due to tank size - lower energy density) Comparable power and speed Proven and established with 135,000 natural gas vehicles in U.S. and 15.2 million worldwide (> 10,000 registered in NYS) 50% of new refuse vehicles in 2012 CNG 40% of new transit buses in 2012 CNG

4 CNG Savings Refuse Example 40 truck fleet - using 7,500 gallons of diesel per truck per year 300,000 gallons of diesel/year $1,200,000 expense at $4/gallon Assumptions Lower cost time-fill CNG infrastructure $1.50/DGE with fueling infrastructure investment $2.50 declining to $2.05/DGE with 3 rd -party investment Incremental cost of CNG vehicle = $30,000 Replace 4 trucks per year with CNG over 10 years Invest in fueling infrastructure Total savings = $1,965,480 Annual savings at year 10 = $534,000 Cash flow positive after 4 years No money down Total savings = $1,770,000 Annual savings at year 10 = $465,000 Cash flow positive after 3 years

5 US DOE Energy Information Administration (EIA) Energy Forecast through 2035 Summary - Federal Government sees price spread between oil and natural gas slightly widening by 2035 Note CNG price is not as correlated to NG price as gasoline or diesel are to oil due to electric costs for CNG

6 The Biogas Resource (Energy Vision 2012)

7 Landfill Gas Electricity vs. RNG Production * Assuming no RECs or RINs LFG-Electric versus LFG-CNG Simple Financial Analysis LFG - Electric LFG - CNG SCFM Assuming 50% me Assuming 50% methane Capacity kw 300, ,000 DGE at 300 days/year CapX $1,000,000 $1,500,000 $ /kW $2,000,000 $4,000,000 BioCNG EPC Revenue $160,000 $320,000 $.04/kWh $600,000 $1,200,000 $2/DGE Operations & Maintenance $100,000 $200,000 $200/kW $300,000 $600,000 $1/DGE BioCNG estimate EBITDA $60,000 $120,000 $300,000 $600,000 Summary: RNG EBITDA ~ 5X Electricity Production RNG Simple Payback about 2x faster If.you can use 100% fuel

8 Federal Renewable Fuel Standard (RFS) Renewable Identification Numbers (RINs) - Means to track, register and monetize environmental attributes of alternative vehicle fuels Currently RFS expires 2022, although Congress could change prior or extend EPA Proposed Rule to reduce volumetric requirements of advanced and conventional (corn ethanol) biofuels 8

9 BioCNG Costs Bio-CNG (aka RNG) 200 cfm, 58% methane Produce ~ 284,000 Diesel Gallon Equivalents (DGEs) per year 900 DGEs/day - enough fuel for ~30 HDVs (or ~50-60 light duty vehicles) All hard and soft costs for upgrade and fueling infrastructure - ~$ M Estimated DGE Cost - $ $1.25 DGE before RIN incentives Produce BioCNG (O&M) - $1.00 DGE With federal ($0.245) and state excise taxes CNG exempt (Reference New York Tax Law 1111 and 1115) With RINS As low as pennies / DGE (or even get paid to burn use fuel earlier in 2013)

10 Exploration Studies of NY County Fleets Exploration Fleet Study ~ Building Energy Audit Process: Collect fleet data Itemize all vehicles, annual mileage, fuel type, fuel usage, fuel cost Identify baseline Total Diesel and gasoline fuel cost Cost to replace each vehicle in fleet with diesel or gasoline Identify ~ equivalent CNG (and/or other AFV) for each vehicle in fleet and vehicle cost (OEM or upfit) Calculate versus baseline: Incremental cost by vehicle and in aggregate Fuel cost savings by vehicle and in aggregate Simple payback by vehicle and in aggregate Calculate approximate cost of CNG fuel infrastructure

11 NY County Explore Studies Last 18 months: Albany County Tioga County Niagara County Rockland County Other local governments and private sector Meant to be low-cost, with sufficient data for Administration and Legislature decision on next step such as: Define location Pursue grant funding Site Engineering Etc.

12 Light Duty Baseline Example Light Duty CNG Payback Example

13 Simple Payback Analysis Scatter Chart of Vehicles

14 Lessons Learned High mileage, low-mpg vehicles are the drivers for infrastructure Transit Cut fuel bills by 50% or more Even smaller counties that operate Transit fleets can spend over $1,000,000 annually on fuel County Vehicle mix isn t optimal if no Transit High-mpg light duty vehicles Sheriff vehicles don t want to give up trunk (LPG better fit) Low-mileage Highway vehicles Light/Mid duty pickups are good, but typically not enough to justify infrastructure investment Multi-municipal (e.g. Towns) and/or private sector fleets (e.g. Refuse, beer/soda distributors) can help with demand. Collaboration viewed positively by grant reviewers

15 NY State NY Clean Energy Grant & Incentive Funding > $1 billion ($1.4B) $653 million - NYSERDA (3/2011 3/2012) $250 million New York Power Authority (NYPA) $102 million PSEG Long Island $12 milliion NYS Environmental Facilities Corporation (EFC) Green Innovation Grant Program Millions in annual demand response from NY Independent System Operator $1 billion Green Bank (currently at $218.5MM) Electric & Gas Utilities > $150 million - Energy Efficiency & Portfolio Standard (EEPS) Independent Energy Efficiency Program (IEEP) municipal utility incentives (e.g. Fairport Electric) Federal Programs, Grants and Tax Credits Tens Hundreds of Millions from DOE, EPA, USDA, IRS Tax Credits

16 Federal Incentives Summary Renewable Fuel Standard $/gallon RINs (RNG) Infrastructure and/or Vehicle Grants (CNG/RNG) Federal Highway Administration (e.g. CMAQ) Federal Transit Agency Environmental Protection Agency Federal Aviation Administration (e.g. VALE) Monroe County used VALE funding for Greater Rochester Airport CNG station

17 New York State Incentives Regional Economic Development Competition (REDC) Once per year regional competition This year due date June 16, 2014 $300, award through ESD for CNG fueling/vehicle upfits in Batavia (project abandoned) NYSERDA Cleaner Greener Implementation Greenhouse Gas Reduction Category 3 $30,000,000/year statewide 2013, 2014, and similar program funded 2 CNG programs at $1MM/each in Buffalo and Binghamton NYSERDA CNG Infrastructure Development Due 7/9/14 NYC Truck Voucher Incentive Program (NY-VIP) 80% up to $40,000 for Class 3-8 trucks

18 2014 Cleaner Greener Communities Category 3 PON Community Scale Sustainability Projects $25 million available. $500,000 - $5 million per project. Minimum 25% cost share Proposals due 6/18/14 by 4 pm Focused on carbon emissions reduction Project types Sustainable Neighborhood Developments that lead to replication - or Facilitate, develop, or expand a private-sector business model targeting delivery of community-wide clean energy services or sustainability projects

19 2013 Cleaner Greener Communities Category 3 Region Total Region ($) # Regional Projects West $1,000,000 1 Finger Lakes $3,926,500 2 Southern Tier $1,304,538 1 Central $2,343,000 2 North Country $3,333,841 2 Capital $3,907,000 2 Mid- Hudson $3,715,000 3 NYC $2,137,500 1 Long Island $4,850, projects totaling $26,517,379 Size range from $1 MM - $2.9MM 2 CNG projects in Long Island $1MM/each funding for Town of N. Hempstead and Islip Resource Recovery Agency Public access (and private fleets) 2 CNG projects at $1MM each selected 2012 as well (Binghamton and Buffalo) in similar RFP No RNG projects selected (although proposed) in 2012 or 2013

20 CNG Infrastructure Program NYSERDA PON $3.6MM available To increase the number of publicly-available CNG stations Up to $300,000/station for 50-74% cost share Up to $500,000/station for > 75% cost share Installation labor and equipment, not permitting or design costs. Targeting 12 new CNG stations Evaluation Criteria Proposal Quality Geographic coverage Gasoline/diesel offset Proposer Qualifications Fleet Commitments Project Value Budget detail

21 Regional and Utility Incentive Opportunities Genesee Region Clean Communities Up to 75% for vehicle incremental cost First round over $900,000 2 nd round of funding over $900,000 available in 2014 National Fuel Gas up to $200,000 for infrastructure Approved by NY Public Service Commission Other gas utilities could follow