USING NATURAL GAS AS A TRANSPORTATION FUEL STATE OF THE OPPORTUNITY IN THE REGION. Scott A. Schriner, CCM, PE, LEED Green Associate

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1 USING NATURAL GAS AS A TRANSPORTATION FUEL STATE OF THE OPPORTUNITY IN THE REGION Scott A. Schriner, CCM, PE, LEED Green Associate May 12, 2015

2 Agenda Available Natural Gas Vehicles, Conversion Kits, and Engines Current Fueling Station options Best Niche Conversion Opportunities Vehicle Storage and Maintenance Considerations Vehicle Considerations Bottlenecks Economics Summary of State and Federal Grant Funding Opportunities Resources Regarding Alternative Fuel Vehicles

3 Available Natural Gas Vehicles, Conversion Kits, and Engines PennDOT Report of Vehicle Registrations Year Total Natural Gas Propane 2013 Registered 11,616, * ,715, * 380 * numbers do not account for mass transit vehicles LNG vehicles are not depicted in this annual report Clean Cities 2015 Vehicle Buyer s Guide Clean Cities Guide to Alternative Fuel and Advanced Medium and Heavy Duty Vehicles

4 Available Natural Gas Vehicles, Conversion Kits, and Engines If you are considering going to an alternate fueled vehicle, there are two options: 1. OEM (Original Equipment Manufacturer) EPA certified clean alternative fuel conversion system manufacturers IMPCO, Landi Renzo USA, Altech-Eco, BAF Technologies, NatGasCar, Powerfuel CNG Conversion Systems, Icom North America, American Alternative Fuel, Blossman Services, Roush Industries as examples List of Natural Gas Vehicle Providers in PA 2. Conversion List of CNG Conversion Providers in PA Engines must meet EPA and California Air Resources Board (CARB) requirements Licensed technician associated with that manufacturer should perform the installation Not all vehicles are candidates for conversion

5 Available Natural Gas Vehicles, Conversion Kits, and Engines Dedicated runs strictly on natural gas; spark ignition Dual Fuel runs on diesel and natural gas at the same time Bi-Fuel runs on either gasoline or natural gas Some currently available OEM passenger and light duty vehicles Honda Civic Chevrolet 2500/3500HD Chevrolet Express 2500/3500 Chevrolet Express Cutaway Chevrolet Impala Ford F250/350/450/550/650 Ford Transit Connect Ford E-350/450 Ram 2500 GMC Savana 2500/3500 GMC Savana Cutaway 3500/4500 GMC Sierra 2500/3500HD

6 Current Fueling Station Options Fast Fill Stations can cost from $150k to several million dollars Anchor fleet is needed Cascade fast-fill is like going to a Sheetz and filling up Buffered fast-fill does not require as much storage (hence less cost) Time Fill Ideal for fleets of various sizes Most economical as there are no storage requirements Home Refueling Appliances (HRA) for residents Permitting and Operating a CNG Fueling Station in PA CNG Vehicle Fuel Facility Application to Install (PA Dept of Labor and Industry) CNG Dispenser Registration and Inspection (PA Dept of Agriculture) Alternative Fuel Tax License (PA Dept of Revenue)

7 Current Fueling Station Options

8 Current Fueling Station Options

9 Current Fueling Station Options Typical Components of Cascade and Buffered Fast Fill Stations

10 Current Fueling Station Options

11 Current Fueling Station Options Typical Time Fill Station

12 Current Fueling Station Options CNG in a Box Example Fuelmaker Cubogas Pocket can be either a fast fill or a time fill station Ability to add external storage and also would need a dryer (blue tank).

13 Current Fueling Station Options CNG in a Box Example Galileo CNG Systems Gigabox Microbox The original CNG Plug-and-play all encompassed system for commercial or large fleet use.

14 Current Fueling Station Options Home Refueling Appliance Examples FMQ 2.5 FMQ 10 Individual Vehicle Application One or More Vehicle Applications

15 Current Fueling Station Options Nationwide as of April 30, 2015: Public CNG FS 823 Pvt CNG FS 726 Public LNG FS 73 Pvt LNG FS 38 Source: NGV Today

16 Current Fueling Station Options PennDOT P3 CNG initiative Potential for up to 36 sites at the Commonwealth s Transit Agencies Some sites will have a public access fuel dispensers Four (4) firms shortlisted Clean Energy, Newport Beach, CA GP Strategies, Escondido, CA (L.R. Kimball, Ebensburg, PA; McCrossin, Bellefonte, PA; Gladstein Neandross & Assoc., Santa Monica, CA) Spire, St. Louis, MO (Institute of Gas & Technology, Des Plaines, IL; Raymundo Engineering Co., Walnut Creek, CA; Parsons Brinckerhoff, Pittsburgh, Lancaster, Camp Hill, Philadelphia; Dual Fuel Services, Inc., Batavia, IL) Trillium CNG, Salt Lake City, UT (Larson Design Group, Williamsport, PA) RFP under development by PennDOT Includes facility renovations as part of the P3

17 Current Fueling Station Options CNG Stations Station Name City Station Name City Bee Green CNG Ambridge Martindale Autogas New Holland Get-Go Cranberry Cranberry Township American Natural Energy Centre Pittsburgh Heath Oil CNG Barkeyville VNG - BP Philadelphia River Valley Transit Williamsport EQT - Strip District Pittsburgh Clean Energy - Tyburn LLC Fairless Hills Clean N' Green Pen Argyl GAIN Clean Fuel Johnstown Clean N' Green Washington "O" Ring CNG Fuels Systems - Coolspring "O" Ring CNG Fuels Systems - Innovative Punxsutawney Innovative Entrepreneurs Inc Entrepreneurs Inc Clean N' Green Bristol Sunoco Hunker CNG Fuel LLC Shippenville Uni-Mart Exxon Allentown Clean Energy - Uni-mart State College Clean Energy - Philadelphia International Airport - Wally Park 30 public CNG stations as of 4/23/15 Source: AFDC Lester Palo CNG Clarion Clean Energy - Berwyn PECO Berwyn Dandy Mini-Mart Towanda Dandy Mini-Mart Sayre White Oak Farms Inc Dayton "O" Ring Fueling Systems Brookville Giant Eagle GetGo Pittsburgh Clean Energy - Eddystone PECO Eddystone Wayne Township Landfill Lock Haven Clean Energy - Carlisle Flying J #708 Carlisle Trillium CNG Pottsville

18 Current Fueling Station Options LNG Station Station Name Clean Energy - Carlisle Flying J #708 City Carlisle LPG Stations Station Name City Station Name City U-Haul Williamsport AmeriGas Stroudsburg U-Haul Lancaster U-Haul Glenshaw U-Haul Erie ProGas Inc Aliquippa U-Haul Harrisburg U-Haul Glenside Williams Wesco Inc Gibsonia Flying J New Milford U-Haul Gettysburg U-Haul Philadelphia U-Haul Washington Eddinger Propane Bally Greenfield WoGo Lancaster Self Heating & Cooling Inc Horsham Ferrellgas Manheim U-Haul Allentown Sunoco Honesdale Koppy's Propane Inc Williamstown U-Haul Chambersburg Pilot-Flying J Smithton + 58 public propane and 1 LNG fueling stations as of 4/23/15 Source: AFDC

19 Current Fueling Station Options LPG Stations (Cont d) Station Name City Station Name City Molly's Convenience Store Manheim U-Haul Pittsburgh Modern Gas Sales Inc Reeders U-Haul Philadelphia Flying J Brookville BJ Tool Myerstown Combined Energy Services Dingmans Ferry U-Haul Philadelphia U-Haul Coraopolis Flying J Carlisle "O" Ring Fueling Systems Brookville U-Haul State College Martindale Autogas New Holland U-Haul Philadelphia U-Haul Colmar U-Haul Scranton Ephrata WoGo Ephrata U-Haul Monroeville AmeriGas Aliquippa Keystone Propane Greentown Ferrellgas Home ProGas Inc Zelienople U-Haul Norristown Moyer's & Son Gas Service Freeburg Deiter Brothers Bethlehem U-Haul Altoona U-Haul Reading AmeriGas Somerset Flying J Mill Hall Tommy Carr Tire & Auto Service Inc Chalfont U-Haul Pleasant Hills AmeriGas Everett Keystone Propane Throop AmeriGas Mercer Palo CNG Clarion U-Haul Wilkes Barre

20 Best Niche Conversion Opportunities Small Fleets Street Sweepers Waste Haulers (Refuse, Recycling, and Rollback) Concrete Mix Trucks Taxi Companies (Ford Transit) Private Para-Transit Providers

21 Vehicle Storage and Maintenance Considerations NFPA Defines Minor Repair Area as: A building or portion of a building used for lubrication, inspection, and minor automotive and maintenance work such as engine tune-ups, replacement of parts, fluid changes, brake system repairs, tire rotation, and similar routine maintenance work, including associated floor space used for offices, parking, or showrooms. [NFPA 30A: ] Major Repair Area as: A building or portion of a building where major repairs, such as engine overhauls, painting, body and fender work, and repairs that require draining the motor vehicle fuel tank are performed on motor vehicles, including associated floor space used for offices, parking, or showrooms. [NFPA 30A: ]

22 Vehicle Storage and Maintenance Considerations Parking/Storage Areas No specific CNG Code requirements. Minimum Ventilation IMC requires 0.75 CFM/ft² exhaust airflow in repair garages. Minor Repair Area No specific CNG Code requirements per NFPA 30A or IFC. IMC requires 5 ACH continuous or ventilation interlocked with gas detection system or ventilation interlocked with lights. Major Repair Area Ventilation NFPA 30A /NFPA 52-5 ACH (continuous or ventilation interlocked with gas detection system). IMC ACH (continuous or interlocked with gas detection system or interlocked with lights - CNG only).

23 Vehicle Storage and Maintenance Considerations Major Repair Area (continued) Heating No open flames Surface temperatures less than 750 F. Electrical (NFPA 30A and NFPA 70/NEC) Ceiling: Ventilate within 18 of ceiling at 1 CFM/Ft² or space is Class I, Div. 2. Floor: Ventilate within 18 of floor at 1 CFM/Ft² or space is classified. Adjacent Spaces Ventilation at 4 ACH or pressurize spaces or seal all openings. Architectural Seal doors, walls, and walls penetrations between major repair areas and adjacent spaces.. Warning Signage. Best Practice All areas, install approved gas detection system interlocked with ventilation fans, alarm, garage bay doors, and heating system. *All other IBC, IMC, and NFPA Code Requirements for Maintenance Garages must be met.

24 Vehicle Considerations Range is not as good as gasoline or diesel Engine burns hotter Fuel economy similar to diesel CNG tanks are heavier May not have to change oil as frequently as it burns cleaner Energy value is not as good as diesel (torque and horsepower) Training available for your mechanics Safer vehicle to operate Explosive Limits very limited 5%-15% concentration with air Lighter than air; so it dissipates Onboard storage tanks virtually indestructible

25 Bottlenecks Lack of knowledge about compressed natural gas vehicles, maintenance Insufficient infrastructure Education of the public, insurance companies, Authorities Having Jurisdiction (AHJ) Available funding Price of gasoline and diesel today NIMBYism Cost of CNG fueling stations Cost of a Natural Gas Vehicle (OEM or conversion) General Public

26 Economics From NGVAmerica, Return on Investment (ROI) estimates (based on $1.30/GGE savings): Sedan: 5 years no grant; 2.7 years with grant assistance Passenger Van: 1.9 years no grant; 1 year with grant assistance Step Van: 3.3 years no grant; 1.3 years with grant assistance Refuse Truck: 1.9 years no grant; 0.95 years with grant assistance Class 8 Rig: 2.25 years no grant; 1.3 years with grant assistance

27 Economics Cost of Conversion (retrofit). Some general figures that work as estimates for conversions: Sedans: $7,000-$10,000 Small Vans (Transit Connect): $9,000-$11,000 Pickups: F250/350 series: $13,000-$14,000 Pickups: F450/550/650: $23,000-$25,000 Dump Trucks: $30,000-$50,000 The difference in pricing is mainly the type of CNG tanks (the lightest are the most expensive); and the number/volume of the tanks. Sedans normally carry 8-10 GGE ; Small Vans: GGE; Small Pickups: GGE; Dump Trucks GGE. Data from Clean Energy and BAF and may not be current.

28 Economics Some starting MSRPs of NGVs from the OEM: Chevrolet Impala $38,210 Ford Super Duty (F-350/450/550) $31,400 Ford Super Duty (F-650) $55,595 Ford Transit Connect $22,000 Ford Transit 150/250/350 $29,556 Honda Civic $26,640 OEM = Original Equipment Manufacturer Data from Clean Cities 2015 Vehicle Buyer s Guide.

29 Summary of State and Federal Grant Funding Opportunities At the State level DCED s Alternative and Clean Energy (ACE) program is still available for CNG infrastructure. As far as funding for CNG vehicles, DEP Alternative Fuels Incentive Grant (AFIG) Rebate program for residents ($1000/new vehicle) is on-going. DEP anticipates opening the AFIG grant program for alternative fuel fleet vehicles in 2015, but they have no details yet on when that would be, eligibility, or the amount of funding available, etc. Small Business Advantage Grant Program provides 50% matching grants up to $9,500 for PA small businesses to adopt or acquire energy efficient or pollution prevention equipment or processes.

30 Summary of State and Federal Grant Funding Opportunities At the Federal level expired at the end of Alternative Fuel Excise Tax Credit of $0.50/GGE Alternative Fuel Infrastructure Tax Credit of 30% of cost not to exceed $30,000. And residents eligible for up to $1,000 credit for home refueling appliances. Alternative Fuel Mixture Excise Tax Credit of $0.50/GGE Alternative Fuel Tax Exemption Common nontaxable uses include: on a farm for farming purposes, intercity and local buses, school bus, exclusive use by a nonprofit educational organization for example.

31 Current List of DCED ACE Grantees Beemac Trucking LLC Beemac Trucking CNG Beaver Birkmire Trailer Company CNG Filling Station Erie Clean Energy Carlisle Flying-J Liquefied Natural Gas Fueling Station Cumberland Desdemona Holdings LP American Natural Station Square CNG Development Allegheny LT Verrastro, Inc. L.T. Verrastro Filling Station Lackawanna "O" Ring CNG Fuel Systems, Inc. Borough of Chambersburg CNG Project Franklin Sunoco CNG Refueling - PA Turnpike King of Prussia Service Plaza Montgomery VNG.CO LLC dba V NG.CO 2901 Abbottsford Philadelphia Clean Energy dba Clean Energy Inc. New Oxford CNG Station Adams Clean Energy dba Clean Energy Inc. King of Prussia CNG Station Montgomery Halifax Area School District High Performance Building project Dauphin Clean Energy dba Clean Energy Inc. Allentown LNG Public-Access Fueling Lehigh REV LNG, LLC REV LNG Small Scale Liquefaction Project Bradford Love's Travel Stops & Country Stores Love's Mifflin CNG Station Project Columbia 58 Alternative Fuel (CNG, LNG) projects as of 3/10/15

32 Current List of DCED ACE Grantees Love's Travel Stops & Country Stores Love's Jonestown CNG Station Project Lebanon Love's Travel Stops & Country Stores Love's Carlisle CNG Station Project Cumberland Silvi Concrete of Chester County, LLC Downingtown Natural Gas Station Chester Constructional Dynamics, Inc. Limerick Natural Gas Station Montgomery Waste Management of Pennsylvania, Inc. WM Pen Argyl Grand Central Station CNG Station Project Northampton Clean Energy dba Clean Energy Inc. Pittston Public-Access LCNG Fueling Station Luzerne Clean Energy dba Clean Energy Inc. Pottsville Public-Access LCNG Fueling Station Schuylkill Clean Energy Trache A LNG Plant, LLC PA LNG Facility Eastern PA Ariel Holdings LP American Natural Harmar CNG Project Allegheny Hypatia Holdings LP American Natural Wexford CNG Project Allegheny Clean Energy dba Clean Energy Inc. Warminster PECO Public-Access CNG Station Bucks Clean Energy dba Clean Energy Inc. Berwyn PECO Public-Access CNG Station Chester Clean Energy dba Clean Energy Inc. Coatesville PECO Public-Access CNG Station Chester Clean Energy dba Clean Energy Inc. Phoenixville PECO Public-Access CNG Station Chester

33 Current List of DCED ACE Grantees Clean Energy dba Clean Energy Inc. Mill Hall Public-Access CNG Station Clinton Clean Energy dba Clean Energy Inc. Carlisle Cumberland Clean Energy dba Clean Energy Inc. Alternative and Natural Gas Delaware Clean Energy dba Clean Energy Inc. Concordville-Glen Mills Lehigh Gas Public-Access CNG Station Delaware Clean Energy dba Clean Energy Inc. Lehigh Gas Public-Access CNG Station Lehigh Clean Energy dba Clean Energy Inc. Plymouth Meeting PECO Public-Access CNG Station Montgomery Clean Energy dba Clean Energy Inc. Smithon Public-Access CNG Station Westmoreland CNG Motor Fuels of Clearfield County, Inc. CNG Motor Fuels of Jefferson County, LP CNG Motor Fuels of Jefferson County, LP CNG Motor Fuels of Somerset County LLC New CNG Station in Dubois, PA Brookville CNG Station Expansion Project Punxsutawney CNG Station Expansion Project New CNG Station in Somerset, PA Clearfield Jefferson Jefferson Somerset Export Fuel Company, Inc. New CNG Station in Greensburg, PA Westmoreland Integrys Transportation Fuels dba Trillium CNG Schuylkill County CNG Station Project Schuylkill Sunoco, Inc. Sunoco CNG Refueling - Pittsburgh Airport Allegheny

34 Current List of DCED ACE Grantees Sunoco, Inc. Sunoco CNG Refueling - PA Turnpike New Staton Plaza Westmoreland VNG.CO LLC 400 W. Street Road Bucks VNG.CO LLC 3001 W. Germantown Pike Montgomery Clean Energy dba Clean Energy Inc. Allentown LCNG Lehigh United Parcel Service The Commonwealth's LNG Conversion Inititive Cumberland Clean Energy dba Clean Energy Inc. Clean Energy South Philadelphia Public-Access CNG Philadelphia Station Constellation New Energy, Inc. Commonwealth Energy Group CNG Station Initiative Lackawanna Integrys Transportation Fuels dba Trillium CNG HIA Public Access CNG Fueling Station Dauphin Snyder Brothers, Inc. Snyder Brothers Inc. CNG Fueling Station Armstrong Sunoco, Inc. Sunoco CNG Refueling - Canonsburg Washington Sunoco, Inc. Sunoco CNG Refueling - Chambersburg Franklin U.S. Venture, Inc. Fairless Hills Public CNG Filing Station Bucks U.S. Venture, Inc. Fredericksburg Pacific Pride Station Lebanon Clean Energy dba Clean Energy Inc. Clean - Centre County Public Access CNG Station Centre Great River Energy, LLC The Easton PA Public CNG Station Initiative Northampton United Parcel Service UPS New Stanton CNG Conversion Initiative Westmoreland

35 Resources Regarding Alternative Fuel Vehicles Alternative Fuels Data Center, US Department of Energy afdc.energy.gov Clean Cities Program EPAct [Eastern PA Alliance for Clean Transportation] NGVAmerica NGVi PA Department of Environmental Protection act_13/20789 PA Department of Community and Economic Development

36 Resources Regarding Alternative Fuel Vehicles The following documents have been prepared by the Ben Franklin Technology PArtners in support of this project: NGV Maintenance, Storage, and Infrastructure Development Guide NGV Fueling Stations and Current Projects: Pennsylvania Natural Gas Conversion in the Transportation Industry CNG Conversion Providers in PA Certified Natural Gas Vehicle (NGV) Maintenance Personnel: Pennsylvania PA Companies that Provide Natural Gas Vehicles

37 USING NATURAL GAS AS A TRANSPORTATION FUEL STATE OF THE OPPORTUNITY IN THE REGION Scott A. Schriner, CCM, PE, LEED Green Associate sschriner@gfnet.com (717) c (717) , ext. 2183

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