CNG Discussion Senate Energy Policy Issues Committee Jim Trogdon, COO, N.C. Department of Transportation March 21, 2012
CNG in State Motor Fleet Currently no CNG vehicles in state motor fleet Fleet had CNG vehicles previously, but Person St. Station CNG station was removed CNG fleet sold to Town of Wake Forest
NCDOT Motor Fleet CNG Conversion 1,450 pickup trucks 573 in current non-attainment areas About $12,000 to convert vehicle to CNG Cost to convert entire fleet: $17.4 million ($6.9 million for non-attainment areas only)
NCDOT Motor Fleet CNG Fueling 112 fueling sites across the state Estimated cost range of $1-1.8 Million per site to add CNG
NCDOT Motor Fleet CNG Vehicle Purchase Currently costs department about $24,000 to purchase new, 2 WD ½ Ton vehicle Price increase of about $8,000 with CNG vehicle 150 vehicles purchased each year; would cost about $1.2 million more to purchase CNG vehicles (statewide)
Challenges of Using CNG(only) in NCDOT Fleet CNG vehicles can t be mobilized to areas without fueling capabilities Most fleet vehicles lack daily mileage to make CNG conversion economically viable Equipment resale limited to areas with private CNG stations These limitations do not apply to BiFuel vehicles
Congestion Mitigation Air Quality Program (CMAQ) Federal program; funds transportation projects and programs in air quality non-attainment areas May be used to establish new or expanded transportation projects/programs that reduce emissions Ex: Infrastructure investments Congestion relief efforts Diesel engine retrofits
CMAQ Eligible Expenses Establishing publicly-owned fueling facilities and other infrastructure needed to fuel alternative-fuel vehicles Purchasing publicly-owned alternative fuel vehicles New transit vehicles to replace or expand existing fleet (including diesel engine retrofits) May support converting private facility to support CNG in non-attainment areas through P3
CMAQ Distribution of Funds 60% to locallyadministered projects determined by RPO/MPO 5% to regional projects determined by RPO/MPO 35% to NCDOTproposed projects
CMAQ Project Funding Projects are currently funded in STIP through FFY 2015 Currently developing projects for FFY 2016&2017 Currently considering statewide projects for FFY 2015 and beyond
CMAQ New Ozone Standards EPA implementing revised standard for ozone Fewer areas eligible for future CMAQ funding Under revised standard, only Metrolina eligible for non-attainment status for ozone Other areas would still be non-attainment for other pollutants (CO, PM): Durham, Forsyth, Mecklenburg, Wake, Davidson, Guilford
Challenge Posted Roads Heavy equipment used in fracking/drilling transported on low tonnage roads and bridges 997 heavy truck loads associated with the fracking of one gas well Texas DOT 1.5-2x increase in vehicle volume and 4-5x increase in truck volume per day Penn DOT Roads are not equipped to handle increase in heavy loads
Challenge Posted Roads According to North Dakota DOT, the roads affected by the oil industry were not designed for the loads that are occurring and are failing we are reacting and trying to plan ahead. Louisiana DOT reports significant impact to pavements and bridges from activity associated with extraction of natural gas. Damages far exceed our ability to fund new pavement and bridges.
Challenge Posted Roads PENNDOT Rapid Growth 60 wells 2007 1920 wells 2011 25% of state road mileage is posted at 10 Tons 68% increase since 2007 1,450 truck trips per well Key to success is Excess Maintenance Agreements (EMAs) with bonding and Permits
Examples of Solutions from Other States Oil extraction tax to fund transportation improvements Placement of truck bypass routes around towns Haulers required to obtain permit to exceed posted limit Annual Permits and bonds (administrative cost recovery) Impact Fees 15 year period distributed by Utilities Commission
Questions?