Natural Gas Vehicle Workshop for Fleets. Tom Sheehan Manager of Market Development

Natural Gas Vehicle Workshop for Fleets Tom Sheehan Manager of Market Development

Key Factors Driving Market Growth Wicked Abundant Wicked Cheap Wicked American Wicked Clean Many, Many Jobs

Snapshot: U.S. Non-Road Applications Off-road heavy equipment: 5.2 Billion gallons of diesel (725 Bcf) market Marine: 5.2 Billion gallons of diesel (725 Bcf) market Railroads: 3.3 Billion gallons of diesel (465 Bcf) market Transportation is responsible for 2/3 of our petroleum usage. On-road vehicles responsible for ~ 80% of transportation petroleum usage.

Snapshot: Growth in World NGV Market 2003: 2.8 million 2007: 7 million 2010: 12 million Today: 16.4 million

Snapshot: Worldwide NGVs Ranking 12 million vehicles / US lags behind Why? 1. Pakistan 2,740,000 2. Iran 1,954,925 3. Argentina 1,901,116 4. Brazil 1,664,847 5. India 1,080,000 6. Italy 730,000 7. China 450,000 8. Colombia 340,000 9. Thailand 218,459 10. Ukraine 200,000 11. Bangladesh 193,521 12. Bolivia 140,400 13. Egypt 122,271 14. USA 112,000 Last Study: 2010 Data

Snapshot: US NGV Market Today Existing NGV inventory is estimated at ~120-30K ~27-29,000 HDVs 11,000 transit buses/shuttles 4,200 school bus 6,200+ refuse 2,800 ports/regional haul 3,500-4,200 municipal/f&b/misc ~74-76,000 LDVs (fleet and consumer use vehicles) Cars/SUVs, trucks/vans ~18-22,000 MDVs 7,500-8000 gov t 1,500 package delivery 1,700 airport shuttle 1,000 transit/ctaa 5, 500-7,500 utilities, F&B, commercial services, household goods, construction, misc

Snapshot: NGV Growth Independent Forecasts AEO 2013 Forecast Natural gas vehicles are the fasting growing fuel in the transportation sector 11.9 percent per year growth over forecast 14.6 percent average annual growth in HD trucks 1 quadrillion Btu by 2040 or 500,000 bls/day of diesel fuel displaced

Snapshot: US NG Projections & Alt Fuel Mix 11/2/2012 - Nearly 60 percent of alternative fuel use reported by Clean Cities Coalitions was natural gas.

Snapshot: US NGV Market Today Fueling Stations: CNG: 1,208 LNG: 71 Gasoline: 160,000 Diesel: 75,000 Since mid-2010, stations under construction have shown an increase of 179% for CNG stations and 7,000% for LNG Stations // Additional 81 CNG Stations & 71 LNG Stations Planned Translates to CNG stations expanding 20-25/month 48% of CNG stations are now open to the public 45% of LNG stations are now open to the public

Snapshot: US CNG Fueling Infrastructure

Snapshot: CNG Infrastructure Strategy Step 1: Serve local/regional fleets within hub. Build confidence for consumer adoption. Step 2: Serve spokes that connect the hubs

Snapshot: US LNG Fueling Infrastructure Clean Energy Fuels deployment of LNG stations: 150 planned / 70 Already built Located at Pilot-Flying J Truck stops at the intersections of interstates about 250 miles apart Shell announced plans to build 100 LNG stations at TravelCenters of America

Snapshot: Maine NGV-Related Information 1 Private Station Portland Metro: 13 plus 5 Ordered Portland School: 10 plus 3 Ordered Bangor Natural Gas Co: 3-4 LDVs Gov. Paul LePage - MOU

Market Driver: NG is an Abundant Domestic Fuel PGC Resource Assessments, 1990-2010 98+% of US gas consumption is supplied from North America (~88% from US) Well-developed distribution infrastructure; ~300K miles of interstate pipeline 1.2 million miles of LDC distribution lines Technology improvements are expanding our economically recoverable base so much so that the estimated supply is now @ 115+ yrs! Natural gas E&P activity is generating tens of thousands of quality jobs that create secondary economic growth on communities across America Shale Basins and the U.S. Pipeline Grid Source: American Clean Skies Foundation.

Relationship Between Oil & Gas And because of fracking & horizontal drilling. Global cartel broken On a Btu basis, natural gas and oil prices are now decoupled. BBL : MCF ration ran over 40:1 for much of 2012; Even when gas is at more sustainable $4/MCF, ratio tends to hover at ~24:1; This new norm is up from long-time 7:1 ratio E&P s need to assist and develop the transportation sector because ng is very inexpensive

Price Spread Translates To Cheap Fuel

Economics: Outlook for Natural Gas Prices Today fleets save between $1.50 - $2.00 per GGE for natural gas with federal tax credit in place EIA AEO forecast that this trend is likely to continue into the future

U.S. Fuel Price Comparison One gasoline gallon equivalent (GGE) is the amount of alternative fuel it takes to equal the energy content of one liquid gallon of gasoline. One GGE of CNG will power a vehicle the same number of miles as one gallon of gasoline.

Conversion Factors For Fuels Gallons & Volume CNG = 20,300 Btu/lb 20,300 X 5.66 lbs/gallon = 114,898 Btu/gallon (5.66 lbs = 1 GGE) 115,400 /83,500 = 1.38 Propane @ $3.29/gallon = $4.55/GGE

Economics: Historical Retail Prices for Fuels Source: AFDC Price Report

PM (g/bhp-hr) Market Driver of Change Emissions/Improvement in AQ AQ Goals, NAAQS and EPA Vehicle Emissions Requirements NG inherently clean / Clean Air Act / Gas industry rushes in EPA and CARB vehicle/engine emissions requirements impact OEMs product offerings, vehicle performance and fuel economy 0.12 0.10 0.08 0.06 0.04 0.02 0.00 1998 Stds 2002/2004 Stds 2007 Compromise Std 1.2 g/hp-hr NOX +NMHC 0.0 1.0 2.0 3.0 4.0 5.0 NOx (g/bhp-hr) 2010 Std (.20 g/hp-hr NOx) 2004 and 2007 diesel emissions strategies hurt fuel economy and performance and increased purchase price and O&M cost ; added complexity. 2010 NOx reduction strategies using SCR technology further increased cost, complexity and O&M costs. DEF systems and usage 2014 phase-in of GHG and fuel efficiency requirements

Market Driver for NGVs Lower Greenhouse Gases (GHG) The Environmental, Economic and Political Realities of Global Warming and Greenhouse Gases Issue is gaining traction internationally and here in US New LDV GHG requirements are already phasing in and EPA and NHTSA are phasing in HDV GHG/fuel economy requirements (2014) Natural gas vehicles reduce GHGs significantly According to CEC study, between 20-29% For HDVs, about 20-23%; for LDVs, 26-29% Depends on comparative vehicles and duty cycles 2012 EPA GREET model being revised based on new data Estimates expected to be in 15-25% range

Market Driver For NGVs Energy Security and Impact at Fuel Pump Global oil supply-demand imbalance getting worse, which pushes fuel prices up US = <5% of world pop but 25% of oil use US = No energy policy Asian economies compete for oil supply; Demand outpacing supply; Political instability in key producer regions will only further exacerbate volatility of crude oil prices Existing refinery capacity is at/or near peak new capacity is lengthy process Barrel of oil topped $145 in late spring 2008! Slump in world economy pushed prices down but higher prices are already returning. Barrel is currently hovering at $94.99 (5/13/13). Are you prepared? Traffic in Shanghai China: Chinese vehicle ownership per capita is equal to where US was in 1919!

Benefits of Natural Gas/NGVs Natural gas is an inherently clean fuel Natural gas is low-carbon fuel (CH4) Less NOx, PM and GHGs Dr. Alan Lloyd Form Sec of CA EPA Honda Civic Natural gas is very safe Lighter than air; Limited combustion ratio (5-15%) High ignition temperature: 1000+F Colorless, odorless, non-toxic substance Doesn t leak into groundwater NGVs are proven and reliable 16+ million worldwide; NGVs are quiet HDVs are 80-90% lower db than comparable diesel NGV life-cycle costs are significantly lower Fuel costs are far lower! Maintenance costs are =/< than gas or diesel Methane Molecule

Key Attributes and Best Prospects High fuel use vehicles with return-to-base operations or repetitive route or pre-set geographic operating areas Regional freight truck 16-20K GGE Transit buses 12.5-15K GGE Refuse trucks 7.5-10K GGE Municipal sweeper 5-6K GGE Airport shuttle service 5.5-7.5K GGE Taxi - 4.5-5.5K GGE F&B, Textile Svcs, Household Goods 3-5K GGE School Bus 2.5-3K GGE E&P pick-up 2-2.5K GGE Courier sedan, newspaper van, utility/ telecom van, Pub Wks pick-ups 1.2-1.5K GGE Consumers have already shown that they will adopt given sufficient infrastructure

Natural Gas and the Hydrogen Future Natural gas and NGVs are the logical energy pathway and technology bridge to the hydrogen transportation energy future Natural gas is 87-95% Methane Methane is CH4-80% Hydrogen H/CNG blending in internal combustion engines is likely precursor to wider use of H2 Market acceptance of gaseous fuel compression, storage vessels, engine maintenance NGV industry is spearheading Codes & Standards Hydrogen Internal combustion engines (H/CNG blends like Hythane) Fuel cells Methane Molecule Ethane Propane Butane Pentane Hexane Other

Wesley T. Hansen Sales Manager Hydrogen Products Nuvera Fuel Cells T: 617.245.7590 C: 617.435.7937 whansen@nuvera.com www.nuvera.com

Reduction to Elimination of Carbon in Fuels

Complete, Compact System Scalable H 2 storage Industrial hydraulic compressor Priority sequencing Remote monitoring and preventative maintenance

On-Site Hydrogen Generation from Natural Gas Natural Gas Steam Reformer 2 Natural Gas and Water 1 3 99.9995% Hydrogen Water and Gas Purification Hydrogen Purification Nuvera Fuel Cells, Billerica, USA is ISO 9001:2008 Certified

Markets for On-Site H 2 Generation Industrial Mobility Transportation Merchant Hydrogen Nuvera Fuel Cells, Billerica, USA is ISO 9001:2008 Certified 33

Fleet Vehicle Opportunities Material Handling Equipment Manufacturing Operations Distribution Centers Airports, GSE Trailer Refrigeration Units Replace the Diesel Engine Zero Emissions, Low Noise, No Idling Restrictions Automotive Passenger Vehicles Public Transportation, City Buses

Natural Gas and Hydrogen Synergies CNG Stations Can Utilize Common Infrastructure Common Pipeline Source Similar Code Requirements Common Concrete and Vehicle Impact Protection Common Safety Devices LNG at Truck Stops Vaporize for Reforming Extends Range of Equipment Common Service Support Similar Technologies Common Service Personnel Skillsets Scheduled Periodic Maintenance Integrated Alert Systems

Nuvera Fuel Cells, Billerica, USA is ISO 9001:2008 Certified On-Site Hydrogen Infrastructure Solution from Nuvera Wes Hansen Sales Manager, Hydrogen Products

Wheels Discussion Panel Available Natural Gas Vehicles and Engines and the Sales /Service Channels that Support Them ( We ve come a long way baby )

Growing Selection of NGVs from OEMs, SVMs OEMs American Honda General Motors Chrysler Ram Trucks Thomas Built Bus Blue Bird Bus Optima/NABI El Dorado New Flyer Motor Coach Industries Gillig Elgin Allianz/Johnston Schwarze Tymco OEMs Freightliner Truck Volvo International/Navistar Kenworth Peterbilt Mack ALF Condor Crane Carrier Autocar Truck Capacity Ottawa Freightliner Custom Chassis* Isuzu Truck North America* HD OEM/Repower Engines Cummins Westport Westport Innovations SVMs (LDV/MDV/HDV) Altech-Eco BAF Technologies Landi Renzo USA / Baytech IMPCO Technologies Westport LD NGV Motori USA NatGasCar Auto Gas America Go Natural CNG Greenkraft PowerFuel Conversions EcoDual American Power Group Peake Energy Solutions Clean Air Power Retrofits of GM, Ford, Dodge, VW, Mitsubishi, Mazda, Workhorse, Isuzu, JAC, UtiliMaster, FCCC

American Honda Civic Natural Gas Sedan Dedicated NGV; 1.8L 4-cylinder engine; 8 GGE tank: 225-250 mile range American-made (OEM mfd: Greensburg, IN - 70% US-sourced parts) Fleet applications: sales reps, project supervisors, document and medical lab couriers, transit route supervisors, social service workers, code officials, parking enforcement, non-pursuit police/security. Originally offered only through Honda fleet sales dealer network, now available via growing number of retail Honda dealers to consumers Consumer adoption is increasing in areas with public access infrastructure.

General Motors Dedicated CNG 2500/3500 Express/ Savana cargo vans introduced 02/11 LC8 6.0L V8 Vortec engine features hardened exhaust valves and hardened intake and exhaust valve seats Two tank configurations available 4 -- 23GGEs; 3 16GGEs 5 year/100k mile warranty Bi-Fuel 2500HD Silverado/ Sierra extended cab pick-up introduced 03/12 Proven LC8 6.0L V8 Vortec engine 2x/4x, Short and Long bed options Single Type III tank 17.2GGE CNG fuel package complements 36 gallon gasoline system 5 year/100k mile warranty

Chrysler Group Bi-Fuel Ram 2500 CNG crew cab 4x4 w 8 bed pick-up truck premiered 03/12 5.7L HEMI engine with factory engineered and installed CNG systems. 2 Type I cylinder fuel storage system provides 18.2GGEs (~255miles), supplementing 8 gasoline gallons (~112miles) for total range of 367 miles ; option available for standard 34 gallon gas tank. Production began July 2012

Vehicles Available Through SVMs

Vehicles Available Through SVMs

Vehicles Available Through SVMs

Transit and School Bus Platforms

Vocational/Specialty/Work Truck

Local-Regional Haul/Line Haul

Onboard CNG Storage

CNG Cylinders Most onboard vehicle cylinders in service today operate at 3600psi 4 types of onboard cylinders; although of different materials and construction methodologies, all meet same stringent safety standards. Type I (all metal) Type II (metal liner, partial wrap) Type III (metal liner, full wrap) Type IV (plastic liner, full wrap) FMVSS 304 requires label detailing end-of-useful life date at which point they must be removed from service and decommissioned (no recertification process) Current life spans may be 15, 20 or 25 years; old cylinders had 15 year life Label also states that cylinders should be visually inspected every 36 months or 36K miles (whichever is earlier) or after accident or fire. Inspection should be performed by Qualified or CSA-certified personnel End-of-life decommissioning and disposal; venting, purging, destroying

Wheels Guest Panelists Barry Carr Director of Business Development Landi Renzo Michael Dunican Vice President North American Equipment BAF Technologies Tyson Jerry Development Manager Sustainable Fuels PowerFuel CNG Systems John Taylor Territory Manager, Field Sales & Support Cummins Inc. Cummins Westport Inc.

Fill er Up Fueling Infrastructure Natural Gas Fuel Station Discussion Panel

Multiple Stakeholders Are Engaging NGV Fueling Infrastructure Local Gas Dist Cos. NG Retailers NG Exploration &Production Cos. Leasing Companies Customers Traditional Fuel Retailers C-Stores Truck Stops

Fueling Infrastructure Guest Panelists Drew Drummond Business Development Manager Clean Energy Fuels Corp Michael Manning VP Business Development AVSG LLC Mary Usovicz OsComp-Systems Drew West President American Natural Gas

Niche Market Guest Panelists Kevin Mallory Director of Transportation Portland Public Schools Dick Nye Senior Director of Transportation & Maintenance Portland Metro Stephen Pesci Special Projects Director University of New Hampshire Peter Vanderhoof NGV Fleet Manager Casella Waste Systems Inc.

Dollars and Sense NGV Economics: Components of CNG Cost, Calculating Simple Payback and Life-Cycle Cost Savings

Components of CNG Cost Gas company bill (unregulated portion): Gas Commodity: One cubic foot = ~1000 BTUs (Note: cf = volume, BTU = energy) One Mcf = 1000 cubic feet One Mcf = 1000x1000 = ~1,000,000 Btus (MMBtu or decatherm) US Gov t says 124,800Btu/GGE (HHV) and 138,700Btu/DGE (HHV) therefore. One MMBtu = roughly 8.0 GGE of (uncompressed) natural gas One MMBtu = roughly 7.2 DGE of (uncompressed) natural gas. When NYMEX MMBtu was $6.00, commodity portion of CNG was $.75/GGE When NYMEX MMBtu was $2.00; commodity portion of CNG was $.25/GGE NYMEX MMBtu is ~$3.93 (5/13/13); commodity portion of CNG is $.49/GGE Your local gas company buys gas at various prices and uses weighted formula to pass along commodity at cost.commodity cost is PART OF the purchased gas adjustment (PGA).

Components of CNG Cost Gas Bill: $.95/GGE Gas costs: ~$.64/GGE (based on estimated wellhead price of $4.00/MMBtu + $1.00/MMBtu associated fees for transportation and services up to LDC city gate) LDC s regulated city-gate-to-meter services: ~$0.31/GGE

Gas Bill: $.95/GGE Components of CNG Cost Electric Compression: $.25/GGE Electric motor KWH and KW OR engine driven unit s natural gas use Station Maintenance/Repair/Service: $.35/GGE Normal PM, scheduled replacement of parts, compressor rebuilds Capital /equipment amortization: $.50/GGE Amortized cost of equipment or cost of capital factored into GGE price SUB-TOTAL: $2.05 (use by or sales to tax exempt entities) $2.24 (use by or sales to taxable entities) Federal motor fuels excise tax: $0.183;

Anatomy of a Selling Price at the Pump

Passenger van for Limo Ford E-350 passenger van, Chevy/GMC 3500 passenger van MPG: 13/15 City/Hwy, 75-90K miles/year Fuel Use: 16-19 GGE/day; 4700-5800 GGE/yr CNG Premium: $15,000 Grant: $ 7500 Remaining premium: $7500 Simple Payback: 0.85-1.05yrs Life-cycle cost advantage: $27K 35+K (based on 5yr life and $ 1.50/GGE savings at retail station) Without grant, simple payback 1.7 2.1years

Medical Lab Courier Service Honda Civic Natural Gas sedan MPG: 19/30 City/Hwy, 30K miles/year Fuel Use: 4-6 GGE/day; 1000-1575 GGE/yr CNG Premium: $6500 Grant: $4000 Remaining premium: $2500 Simple Payback: 1.05 1.65 yrs (based on $1.50/GGE savings at retail station) Life-cycle cost advantage: $5000 $9330 (based on 5yr life) Without grant, simple payback = 2.75 4.3yrs

Step Van Sample Applications (e.g., textile rental service, comm. bakery) MPG: 5.0 6.5, 75-90mpd x6 dys/wk, 26-28K/yr Fuel Use: 13-16 DGE/day; 4200-5000 DGE/yr CNG Premium: $25,000 Grant: $15,000 Remaining premium: $10,000 Simple Payback: 1.2-1.4 yrs Life-cycle cost savings: $62-75K!!! (based on 10 yr life and 1.70 savings/dge fleet contract price) Without grant, simple payback = 2.9 3.5 years

Refuse Truck (LCF model) Crane Carrier LET, Autocar Xpeditor, Peterbilt LCF 320, Condor, Mack TerraPro MPG: 2.5 3.0 (lots of idle and PTO time) Fuel Use: 35-40 DGE/day; 8500-10,000 DGE/yr CNG/LNG Premium: $32,000 Grant $16,000 Remaining Premium: $16K Simple Payback: 0.95-1.1 years (based on 1.70 savings /DGE ) Life-cycle cost savings: $99 - $120K+ (based on 8-year life) If no grant, payback is 1.8 2.2 years.

Grocery Truck Volvo VNM, Freightliner M2, etc MPG: 5.6 miles/dge; 68K miles /year Fuel Consumption: 12,150 DGE/yr CNG Premium (w 84 DGE capacity): $60,000 Grant $25K Remaining Premium: $35K Simple Payback: $20,655 yr savings = 1.7 yrs (based on 1.70 savings /DGE ) Life-cycle cost savings: $130+K (based on 8-year /550,000 mile life before resale) If no grant, payback is 2.9 yrs Life-cycle cost savings: $105+K (based on 8-year /550,000 mile life before resale)

Determining Modifications Required for Adding CNG or LNG Vehicles to Existing Maintenance Facilities

Defining the Problem/Opportunity NGV deployment is accelerating quickly, especially in fleet sector. Economies of scale favor RTB and P2P fleets adoption; most have centralized service facilities Regional/long haul trucking and fueling operations will necessitate more ubiquitous CNG-/LNG-capable service garages Lack of familiarity with NGV technology and applicable codes among fleets, design consultants and AHJs Codes are performance docs, relying on hazard assessment, mitigation Diversity of facility designs/construction leads to variable interpretations Conflicting codes, outdated government guidance and vendor misinformation exacerbate confusion and over-cautiousness, leading to overly expensive retrofits Opportunity: Knowledge/light on subject can avoid costly errors and facilitate wider adoption of NGVs more quickly

Properties of CNG and LNG Natural gas: 88-99% methane (nat l avg: 93%) Methane is CH4 (low carbon, energy-dense fuel) Lighter than air (specific gravity:.55-.65) Limited combustion ratio (5-15%) High ignition temperature: 1000+F Colorless, odorless, non-toxic substance Methane Molecule Ethane Propane Butane Pentane Hexane Other Compressed Natural Gas (CNG) Onboard fuel storage: 3600psi Mercaptan is added to L/CNG Liquefied Natural Gas (LNG) Cryogenic liquid @ -260F; Methane content: ~95+% 1 cu ft of LNG = 600 cu ft of natural gas @ atmospheric pressure; 3.5 lbs/gallon Liquid LNG is not ignitable; vaporizes @ approx ~ -155F (lighter than air).

Applicable Codes to Vehicle Maintenance Facilities International Code Council s Intl Fire Code (IFC 2012) International Mechanical Code (IMC 2012) International Building Code (IBC 2012) National Fire Protection Assoc. (NFPA) 30A (2012) Code for Motor Fuel Dispensing Facilities and Repair Garages NFPA 52 (2010) Vehicular Gaseous Fuel Systems Code NFPA 88 (2007) Standards for Parking Structures These national codes are voluntarily adopted by states and local jurisdictions. Local codes often are not the most recent versions of national model codes (adoption often lags behind). Local AHJ is final decisionmaking authority and may enforce additional requirements.

Code Intent/Rationale/Assumptions Most CNG-/LNG-related codes developed in mid-late1990s based on perceived hazards based on experience of code committees Primary CNG concern: Unintended release in enclosed space. Early PRD s designs were flawed and/or they were improperly selected and the result was unintended venting of CNG cylinders (most were transit applications). Codes developed based on 150% of largest CNG cylinder (50% safety factor). US FTA issued facility guidance tied to funding (1996-97) that went far beyond current codes. PRD standards were revised but FTA guidance still in place Not a single premature PRD failure/release in 10+ years.

Code Intent/Rationale/Assumptions Most CNG-/LNG-related codes developed in mid-late1990s based on perceived hazards based on experience of code committees Primary CNG concern: Unintended release in enclosed space. Primary LNG concerns: Venting due to pressure build-up, and liquid release due to puncture Vacuum insulated LNG tanks will still absorb energy and thus a 15psig/day energy gain leads to hold time of 6-7 days before venting. There are various operational procedures to minimize potential for release during planned maintenance activity. No record of a LNG liquid spill in a maintenance facility Empirical/CFD research underway to better model NG behavior

Evaluate Shop Activities, Segregate, Modify IFC and NFPA 30A exempt minor repair facilities from code requirements specific to CNG and LNG. IFC 2211.7 exempts garages that do not work on fuel systems or do not use open flames or welding from all additional requirements NFPA 30A exempts garages that do not perform: Engine overhauls, painting, body & fender work, any repairs requiring draining of vehicle fuel tanks NFPA 30A define minor repair facility maintenance activity as: Lubrication, inspection, engine tune-ups, replacement of parts, fluid changes, brake system repairs, tire rotations and similar routine maintenance work

Evaluate Shop Activities, Segregate, Modify IFC and NFPA 30A exempt minor repair facilities from code requirements specific to CNG and LNG. To avoid costly modifications, consider: Segregating major repair and minor maintenance activities into separate physical areas; adding NGV-specific bay(s) for major repairs Defueling CNG and/or LNG vehicles before entering major repair area Diesel and gasoline vehicle repair / maintenance CNG/LNG minor maintenance and (defueled NGV) major repair CNG/LNG major repair

Existing Code Requirements by Category (as it relates to maintenance/repair and parking* facilities) Modification Category Code Reference Ventilation Category IMC (2012) Table 403.3; NFPA 88A (2007) 5.3.2 IFC (2009) 2211.7.1, 2211.1.1, 2211.7.1.2; NFPA 30A (2012) 7.5.1, 7.5.2, 7.5.3, 7.5.4, 7.4.7.2, 7.4.7.3 Ventilation in Pits IFC (2009) 2211.3; NFPA 30A 7.4.5.4 Gas Detection IFC (2009) 2211.7.2, 2211.7.2.1, 2211.7.2.2, 2211.7.2.3; NFPA 30A (2012) 7.4.7, 7.4.7.1, 7.4.7.2, 7.4.7.3, 7.4.7.4 Sources of Ignition NFPA 30A (2012) 7.6.6 Electrical Classification NFPA 30A (2012) 8.2.1 Preparation of vehicles For Maintenance Maintenance and Decommissioning of containers IFC (2009) 2211.5 NFPA 52 (2010) 6.13, 6.14

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes Major Repair Garage Approval by AHJ required Natural Type of ventilation LNG or both fuels Fuel Type to add to garage CNG only Type of ventilation Natural Approval by AHJ required Ventilation rate should be 5 ACH Mechanical LNG or CNG Inspect and prepare NGV prior to performing maintenance Mechanical Ventilation rate should be 5 ACH Install gas detection system as required by codes Install Fuel Appropriate Defueling System No gas detection system required Space is a Class 1 Division 2 Classified location Less than 4 ACH Ventilation rate within 18 of ceiling Electrical Classification Sources of ignition Open flames and +750 F Surfaces Remove the sources of ignition in areas subject to ignitable mixtures 4 ACH or more Space is not considered a classified location

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft No Bring ventilation rates up to code 1. Does existing maintenance facility meet ventilation code? A. IMC 403.3 requires repair garages (of all vehicle fuel types) to have minimum ventilation rate of.75 cfm/sqft B. NFPA 88A 5.3.2 requires 1.0 cfm/sqft for all parking structures. Would seem to indicate that all service garages be considered parking structures Result: 1cfm/sqft

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes 1. Operation of Ventilation in Major Repair Facility with CNG Vehicles A. IFC 2211.7.1 i. Continuous operation except when interlocked with with lighting circuit. NO METHANE DETECTION REQUIRED Fuel Type to add to garage Major Repair Garage CNG only FOR ODORIZED CNG. ii. Rate = 1cfm/12 cu ft of space (5 ACH) B. NFPA 30A i. Silent on operation requirements for CNG repair facilities (only for fuel dispensing facilities). NO METHANE DETECTION FOR ODORIZED CNG. C. Both allow AHJ to allow natural ventilation D. No mention by either code re CNG-specific ventilation rate for pits (Clue: lighter than air) Type of ventilation Mechanical Ventilation rate should be 5 ACH No gas detection system required Natural Approval by AHJ required

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes 1. Sources of Ignition A. IFC 2211.3 i. Only addresses liquid fuels re no ignition sources within 18 of FLOOR (also referenced in IBC, IMC, NFPA 70) B. NFPA 30A 7.6.6 i. Requires elimination of open flames and/or surfaces with temps of 750 F or more (e.g., direct-fired unit ii. Fuel Type to add to garage heaters, infrared heaters). Typically means use of indirect heating systems with ductwork, etc Major Repair Garage CNG only Type of ventilation Mechanical Ventilation rate should be 5 ACH No gas detection system required Sources of ignition Natural Open flames and +750 F Surfaces Approval by AHJ required Remove the sources of ignition in areas subject to ignitable mixtures

Facility Modifications to Accommodate Work on CNG/LNG Vehicles 1. Sources of Ignition - Electrical A. IFC 2211 i. No specific reference to CNG, LNG B. NFPA 30A 8.2.1 Ventilation Rate = 1 cu ft/sq ft Yes Garage Type Fuel Type to add to garage No Minor Repairs Only Major Repair Garage CNG only i. Areas within 18 of CEILING are Class I, Division 2 unless that area has at least 4 ACH. AHJ will have to evaluate if roof type and construction methodology allows for effective ventilation to meet 4 ACH ii. If < 4 ACH, then electrical must meet Class 1, Division 2 or be moved out of 18 ceiling zone Type of ventilation Ventilation rate should be 5 ACH No gas detection system required Bring ventilation rates up to code Does HVAC system effectively ventilate at 4 ACH here? No modifications required by the codes Mechanical Natural Approval by AHJ required Space is a Class 1 Division 2 Classified location Less than 4 ACH Ventilation rate within 18 of ceiling Electrical Classification Sources of ignition Open flames and +750 F Surfaces Remove the sources of ignition in areas subject to ignitable mixtures 4 ACH or more Space is not considered a classified location

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes Major Repair Garage Approval by AHJ required Natural Type of ventilation Mechanical LNG or both fuels Fuel Type to add to garage Ventilation in major repair facility with LNG Vehicles or both LNG and CNG Vehicles Ventilation rate should be 5 ACH Install gas detection system as required by codes A. IFC 2211 IFC 221.7.1 i. Continuous operation of ventilation system @ 1cfm/12cu ft (5 ACH) except when interlocked with gas detection system for LNG. B. NFPA 30A 7.4.7 i. Must interlock ventilation system and methane detection system C. Both permit AHJ to allow natural ventilation. Regardless of ventilation strategy, LNG requires methane detection system

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes Major Repair Garage Approval by AHJ required Natural Type of ventilation Ventilation rate should be 5 ACH Mechanical LNG or both fuels Fuel Type to add to garage 1. Sources of Ignition A. Open flames and hot surfaces same as CNG B. Electrical Classification same as with CNG Install gas detection system as required by codes Space is a Class 1 Division 2 Classified location Less than 4 ACH Ventilation rate within 18 of ceiling Electrical Classification Sources of ignition Open flames and +750 F Surfaces Remove the sources of ignition in areas subject to ignitable mixtures 4 ACH or more Space is not considered a classified location

Facility Modifications to Accommodate Work on CNG/LNG Vehicles Ventilation Rate = 1 cu ft/sq ft Yes Garage Type No Minor Repairs Only Bring ventilation rates up to code No modifications required by the codes 1. Regardless of ventilation system operation, methane detection requirements, interlocking, etc. A. Inspect/prepare your NGV i. IFC 2211.5 Isolate fuel container from rest of system ii. Inspect for leakage B. NFPA 30A No mention C. RP: Operate NGV until it stalls after isolating fuel source Fuel Type to add to garage LNG or CNG Inspect and prepare NGV prior to performing maintenance Major Repair Garage

Facility Modifications to Accommodate Work on CNG/LNG Vehicles 1. Maintenance/decommissioning of fuel containers A. CNG cylinders have specific end-of-useful life date (see label). LNG tanks do not. B. NFPA 52.6.13 (2013): Written procedures should be in place for inspection and decommissioning of CNG cylinders. (Training of staff is recommended) C. NFPA 52.6.14 (2013): Major repair garage should install appropriate defueling apparatus (capture or direct atmospheric venting) Ventilation Rate = 1 cu ft/sq ft Yes Garage Type Fuel Type to add to garage LNG or CNG Inspect and prepare NGV prior to performing maintenance Install Fuel Appropriate Defueling System No Minor Repairs Only Major Repair Garage Bring ventilation rates up to code No modifications required by the codes

Shop Design/Modification Considerations Diesel and gasoline vehicle repair / maintenance CNG/LNG minor maintenance and (defueled NGV) major repair CNG/LNG major repair Interior walls will have a 2-hr fire rating and be continuous from floor to ceiling For major repair area, at least one wall shall be an exterior wall and primary access shall be from the outside Interior access between minor and major repair areas shall be through self-closing fire door with AHJ approved rating The minor and major repair areas shall have separate ventilation systems

Summary Current guidance is vague; many costly myths about requirements prevail; confusion within design, vendor and code enforcement community Guidance is based on assessing risks and modifying accordingly Modifications only if major repairs are to be performed If no CNG system work is to be performed, i.e., basic maintenance (e.g. brakes, etc) no modifications required If CNG work is to be performed, modifications may be needed Consider segregating major repair and minor maintenance areas Key considerations in whether or not and to what extent to modify: Ventilation levels; properly designed ventilation should eliminate ignitable mixture Elimination of hot surfaces above 750⁰F (e.g. indirect heat or AHUs) Modification of electric only if within 18 of ceiling if minimum ACH is not achieved Methane detectors not needed for CNG; only for non-odorized gas (i.e., LNG) Not necessary to install explosion proof switches, sockets or redo all electrical systems R&D underway to determine ppm levels, dispersion models, etc

For more information please contact: Tom Sheehan Manager of Market Development NGVAmerica 400 N. Capitol Street, NW - Suite 450 Washington, DC 20001 www.ngvamerica.org tsheehan@ngvamerica.org 207.925.1136