Fleet Services Natural Gas Vehicles

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1 Fleet Services Natural Gas Vehicles NGVs Leveraging a Clean, Abundant, and Affordable Transportation Fuel Anthony Orta Fleet Strategy and Compliance Manager Sempra Energy utilities May 8, The Gas Company. All copyright and trademark rights reserved.

2 About SoCalGas More than 140 years old Nation s largest natural gas distribution utility 20.9 million consumers served through 5.8 million meters in more than 500 communities. Service territory approximately 20,000 square miles, Central and Southern California, from Visalia to the Mexican border. Regulated subsidiary of Sempra Energy* (NYSE: SRE), a Fortune 500 energy services holding company. Net imports Glad to be of service Non-associated offshore

3 So Cal Gas Fleet Count Automobiles Light & Med Duty Heavy Duty Total OTR Equipment Total Fleet 338 3, , ,269

4 Alt Fuel Vehicles & Equipment Breakdown Bi-Fuel CNG 443 Dedicated CNG 542 Total NGVs = 23% of OTR 985

5 NGVs in the SoCalGas Fleet Currently, more than 4,300 on-road vehicles in the SoCalGas fleet As of 2014, 23% are CNG vehicles Increase CNG share to approximately 45% over the next several years Includes Customer Service light-duty trucks + medium and HD platforms Non-associated offshore Net imports

6 SCG Green Fleet Strategy SCG Fleet Services has embarked on a green fleet replacement strategy that includes the following objectives: Increase the percentage of NGVs within the SCG Fleet from 23% to 45% by purchasing an additional 1,000 NGVs over the next several years Reduce greenhouse gas emissions by 15% of baseline Reduce fuel consumption through fuel efficient driving and increase CNG consumption to achieve lower fuel costs Total Annual Fuel Consumption = ~3.5M Gallons Annual Miles MPG CNG vs. Unleaded Cost Per GGE Differential Gallons Consumed Total Annual Dollar CNG Fuel Savings 5-Years 6-Years 7-Years 10, $ $ 1,428 $7,140 $8,568 $9,996 15, $ $ 2,142 $10,071 $12,852 $14,994 Vehicle Policy supports the replacement of all sedans with either CNG powered or Hybrid/Electric vehicles only CEC Buy Down Incentives Available Through PON

7 NGV Pilot Programs SCG recently purchased 20 Dedicated CNG crew truck prototypes on the Freightliner M2 chassis powered by a CNG designed Cummings ISLG 8.9L motor as result of a collaborative effort between SCG, Freightliner, and Phenix Truck Bodies. This truck outperforms a similar diesel powered truck by producing 20% less GHG emissions and has a driving range of over 400 miles. This vehicle utilizes more PTO hours than OTR mileage. Important for ROI justification Every engine hour = 35 Miles OTR i.e. 6 hours a day = 210 miles on top of OTR mileage

8 Recent / Current Fleet NGV Projects Dedicated Honda OEM CNG Civics Dedicated GM OEM Express Cargo Vans Bi-Fuel Chrysler OEM Ram 4x4 Crew Cab Pickup Dedicated GM C2500 Conversion Utility Body Trucks Bi-Fuel GM C2500 Pickup 4x2 & 4x4 Pickup Trucks Dedicated Ford F-250 Conversion Utility Body Trucks Dedicated Freightliner OEM M2 Business Class 26,000 lb. GVWR Utility Body Trucks

9 Vehicle Development Partnerships Collaborating with OEMs to provide specification input on CNG fuel tank layout and range requirements (CNG to gasoline fuel ratio) Evaluating CNG various fuel delivery systems Developing key body upfitters to integrate body designs with NGV offerings Maintenance personnel input and vehicle performance evaluation

10 Considerations for Aftermarket Installations: National Fire Protection Association (NFPA 52) Provisions cover the design, installation, operation, and maintenance of CNG and LNG fuel systems on all vehicle types plus their respective compression, storage, and dispensing systems Compressed Gas Association (CGA 6.4) Created the methods for external visual inspection of NGV fuel containers and their installations. Crash testing to Federal Motor Vehicle Safety Standards (FMVSS 303) is required for vehicles less than 10,000 GVWR OEM systems that comply with FMVSS are exempt from some but not all NFPA 52 Codes.

11 Public-Access CNG Stations Over 100 public-access CNG stations in SoCalGas and SDG&E territories Highest station concentration in the U.S. Growing year after year Non-associated offshore Net imports

12 Public-Access & Private CNG Stations Upgrade stations at SoCalGas and SDG&E bases *27 Fleet Stations 24 in SoCalGas territory 3 in SDG&E territory Non-associated offshore Net imports Proposed redesign of SoCalGas Pico Rivera Station *13 Public 14 Private

13 Why Natural Gas Vehicles? Title Same as video clip

14 Fleet Services Natural Gas Vehicles NGVs Leveraging a Clean, Abundant, and Affordable Transportation Fuel Anthony Orta Fleet Strategy and Compliance Manager Sempra Energy utilities May 8, The Gas Company. All copyright and trademark rights reserved.

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