Funding Natural Gas Fueling Stations

Transcription

1 Funding Natural Gas Fueling Stations November 16, 2010 Dan Huberty Vice President

2 CE Airport CNG Stations Existing Stations Albuquerque Atlanta Hartsfield Baltimore/Washington Burbank Dallas Love Field Dallas Fort Worth Denver Houston Parking Spot JFK La Guardia Long Beach Los Angeles Oakland Oklahoma City Palm Springs Phoenix Sky Harbor San Diego San Francisco Santa Ana/John Wayne Seattle Tacoma Tucson Design/Building/Permitting Austin-Bergstrom Dallas Fort Worth North Field DFW Rent A Car Center Houston Intercontinental - City LAX #2 Las Vegas Newark Ontario 2 Philadelphia

3 Why Natural Gas for Transportation? Cheaper Costs average between $0.50- $1.00 less per gallon than gasoline Cleaner Cleanest burning fuel available Reduces GHG emissions by up to 30% and NOx emissions by 85% Domestic 97% domestically produced Gallon per gallon displacement of foreign oil 118+ year supply 3

4 Cheaper Than Diesel: Historical Retail Fuel Price April 2, 2008 $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Gasoline CNG Apr-00 Aug-00 Dec-00 Apr-01 Aug-01 Dec-01 Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Price per GGE Diesel 4

5 NG Advantage: Cleanest Technology N0x Reduction: Less Smog Greenhouse Gases 85% Natural Gas 0-25% 10-15% NOx Treatment for Diesel Engines 2-6% 0-3% Minimal Diesel Emulsions Ethanol Blends Oxidations Catalysts for Diesel Engines Low Sulfer Diesel -5-0% Biodiesel (B20) Up to 23% GHG reduction compared to diesel fuel Up to 30% GHG reduction compared to gasoline fuel PM Reduction: Less Soot 90% w/cat >85% 50-65% O C O 35-40% ~20% ~20% 15-20% Natural Gas PM Traps for Diesel Engines Diesel Emulsions Biodiesel (B20) Oxidations Catalysts for Diesel Engines Source: South Coast Air Quality Management District 2007 Air Quality Management Plan Summit Panel Low Sulfer Diesel Ethanol Blends Source: California Energy Commission s Full Fuel Cycle Assessment: Well-to-Wheels Report Energy Inputs, Emissions, and Water Impacts 5

6 Natural Gas is Domestic, Abundant & Renewable 98% Supplied from the U.S. and Canada Non-Renewable Sources (2,074 TCF) Renewable Sources (1,750 landfills) 22 Shale Basins in 20 States 118 years of Domestic Reserves 35% increase in Reserves last 2 years Landfill Gas (Biomethane) Dairy Farms Digester Gas (Sewer Treatment)

7 How Do You Fund A Possible Station 7

8 Third Party Contract Benefits 8

9 Revenue Opportunities

10 Warranty & Liability Issues Third party companies can provided extended warranty on equipment Experienced in equipment selection Low priced options exists, but stations need to be built for reliability Rebuild systems at no cost during the term of the agreement Liability Find a company that understands airport insurance requirements Third party company understands liability risks and will resolve Pooling of rates provides for lower costs Well versed in claims management

11 Customer Service & Maintenance Knowledge Third party companies have standard SOP procedures Specialists in operations Standard training procedures Back up systems Parts on hand and throughout system Third party companies have revenue control procedures Specialist in revenue control procedures PCI compliant credit card acceptance Eliminate loss of revenue Audit requirements Maintenance procedures On call procedures Redundant systems Specialists to work on equipment Off-site monitoring

12 Experience In Design and Build Of Facility Built To Meet Needs Forecast volumes Work with a company that builds and operates Be careful of proprietary systems You can avoid cost overruns Process can be streamlined by private company Still need help on permits Design RFP to be best value Costs of brining in utilities can be reduced through volume commitment Use other people s money CIP dollars to build runways 12

13 Increase MBE Participation For Airport Survey Work Boundary survey Grade staking As-build survey Site Preparation Site work including concrete demolition, Strip and export top soil Import and compact in-fill Final grading Civil Work Concrete work Engineering Heavy duty equipment Utilities Trench work Gas and electrical connections 13

14 Financial Incentives for NGVs Tax Credits through December 2010 Allows for up to 80% of incremental cost of dedicated natural gas vehicle based on vehicle s GVWR (Gross Vehicle Weight Rating) GVWR < 8,500 lbs = $5,000 (80% = $4,000) Passenger cars and light trucks GVWR 8,500-14,000 lbs = $10,000 (80% = $8,000) Vans and light-medium trucks GVWR 14,000-26,000 lbs = $25,000 (80% = $20,000) Shuttle buses and medium trucks GVWR > 26,000 lbs = $40,000 (80% = $32,000) Refuse trucks, transit buses, street sweepers, heavy trucks Natural Gas Act - Would DOUBLE all current incentives in the form of rebates versus tax credits - Would cover up to 90% of the incremental conversion cost - Would also allow state and local tax exempt entities to benefit from rebates 14

15 Specialist In Grant Funding

16 City of College Park Refuse Trucks $117,437 $117,437 Class 8 LNG Truck for Goods Movement Applications Parking Spot Dallas Love Field $144,563 Partner Grant Awards Trimac, Houston-Galveston $877,200 Palm Springs Airport - $400,000 Derle Farms Milk Delivery New York City - $1,200,000 Tucson CNG Station $150,000 $150,000 SCAQMD Taxi Buy-down $658,800 $658,800 Metropolitan Paper Recycling Brooklyn, NY - $1,185,132

17 Product Availability Ford Transit Connect Ford Crown Victoria E450 Shuttle Bus Ford E-350 Shuttle Van Full Size Buses 17

18 Vehicle Product Knowledge

19 Popular AFV Airside Programs Ground Support Equipment Biodiesel Electric Natural Gas (DIA) Propane Economics Off road equipment is not subject to state and federal road taxes Low annual fuel consumption Emissions Less stringent than on-road Best met with electric AFVs

20 Questions Mr. Dan Huberty Vice President Clean Energy 4501 Magnolia Cove Drive Kingwood, Texas