San Diego Metropolitan Transit System. William R. Spraul Chief Operating Officer, Transit Services

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2 San Diego Metropolitan Transit System William R. Spraul Chief Operating Officer, Transit Services

3 Overview of San Diego Metropolitan Transit System (MTS) MTS provides light rail and bus services through both directly operated and contracted service MTS service covers over 500 square miles of the urbanized areas of San Diego and over 3,700 total square miles system wide MTS generates 98 million annual passenger trips MTS Bus & Paratransit: 56 million trips MTS Rail: 42 million trips MTS service runs 4am-2am daily, 7days/week MTS annual operating budget about $275 million

4 MTS Fleet Total: 807 buses Overview of MTS Bus MTS operates 92 fixed-routes, including Express, Urban, Rapid/BRT, Community Circulator, Rural and Paratransit routes - Large bus fleet (592 standards and artics): 94% Renewable Natural Gas (RNG) - Small bus fleet (215 mini-buses and paratransit): 36% Propane 100% Propane conversion within 5 years

5 Why RNG and Propane for MTS California s Commitment to Emissions Reduction California is a leader in environmental awareness, climate change, and reducing emissions. The state has aggressive requirements for heavy duty fleets, including transit systems, to make significant reductions in our emissions and carbon footprints. California s goal is to reduce the state's greenhouse gas emissions to 1990 levels by 2020, and to 80 percent below 1990 levels by The Air Resources Board (ARB) is responsible for implementing the California Global Warming Solutions Act in order to meet the 2020 emission reduction goal.

6 MTS Commitment to Emissions Reduction MTS Alternative Fuel Commitment MTS pioneered CNG fuel technology for transit in 1994 Currently, almost all of large bus fleet runs on Renewable Natural Gas and MTS is committed to Low NoX Engines going forward 40% of MTS ridership on zero emissions vehicles (light rail) These steps have achieved a significant reduction in MTS carbon footprint by reducing emissions by 435 million pounds each year.

7 MTS Next Steps The small bus fleet: over 200 gasoline powered paratransit buses and mini-buses The challenge: find an alternative clean fuel solution for the small bus fleet MTS fleet requirements : Consistent and Reliable Performance - Operating Range - Engine Performance - Fuel Efficiency Operating/Fuel Cost Savings Emissions Reduction

8 MTS and Propane Propane was an immediate, viable option Consistent and Reliable Performance Operating Range - Propane allows MTS to continue to meet the daily operating range requirements Engine Performance - Roush, company that produces engine fuel/propulsion technology for motor racing vehicles Fuel Efficiency - Readily available fuel supply - Long term price stability and multiple suppliers - 85% MPG efficiency

9 MTS and Propane Operating/Fuel Cost Savings A propane fuel system adds $20,000 - $27,000 to the bus purchase price Historically, propane s cost per gallon is 67% less than the cost of gasoline Switching to propane will generate an estimated savings of: - $10,000 - $15,000 per year, per bus in annual fuel expense - $900,000 in first year fuel expense - $12 million total life cycle fuel cost expense - $8 million net savings to MTS

10 Emissions Reduction MTS and Propane Propane is a cleaner burning fuel with lower CO2 / greenhouse gas emissions Propane will reduce emissions by over 24,000-37,000 pounds for each bus, each year A propane-powered fleet will reduce MTS annual GHG emissions by over 5.4 million pounds Propane will reduce Carbon Intensity Value by 71%

11 MTS Current Propane Project In September 2015, MTS placed our first order of propane powered buses with an expected delivery of September mini-buses 46 paratransit buses MTS is committed to a 100% propane powered small bus fleet by 2020

12 MTS Propane Challenges MTS will encounter challenges with the conversion to a 100% propane fleet Bulk fueling Tank installation at facility Off-site fueling On-site fueling with trucks

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