Compressed Natural Gas. It gets easier after the first billion miles

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Compressed Natural Gas It gets easier after the first billion miles Los Angeles Metro s Plans for Implementation of Near Zero Low NOx Engines and RCNG John Drayton Director of Vehicle Technology Los Angeles Metro November 2016

Alternative Fuel Basics Hydrocarbon Fuels Methane Gas (CNG) CH 4 Diesel Fuel C 15 H 32 H H C H H H H H C C C H H H H H H H H H H H H C C C C C C C C C C C C H H H H H H H H H H H H H H H H H More Carbon = More Energy + More Emissions Hydrogen: H 2 High Fuel Cost, lowest emissions Methane (CNG): CH 4 Lower Fuel Cost, lower emissions Gasoline: C 6 H 14 Higher Fuel Cost, higher emissions Diesel: C 15 H 32; Higher Fuel Cost, higher emissions Coal: C 240 H 90 O 4 NS Lowest Fuel Cost, highest Emissions Electricity: NA Note - Primarily sourced from hydrocarbons. RCNG CH 4 Methane from renewable/bio source

History of Alternative Fuel and CNG Buses at Metro Metro s Alternative Fuel Fleet First 10 CNG buses purchased in 1988 Purchased fleet of 333 Methanol buses 1989-1992 AFI Policy Adopted - Purchased only CNG buses since 1992 First fleet purchase of 294 CNG buses in 1995 CNG Fueling Public/Private Partnerships in 1998 100% CNG Operation since 2011 ~ 2500 CNG buses; 85m+ miles/year. ~ 1.5 billion miles on CNG buses 1973 Steam Bus GMC New Look bus with custom built Leer Co. steam engine Unreliable, inefficient, very high emissions Yes, there are bad ideas

Current Outlook for CNG at Metro We foresee continued refinement of CNG engines, exhaust systems. We also anticipate migrating to 100% RCNG within next 12 months, and Low NOx engines starting in 2018. CNG engines do require more maintenance than diesel (e.g. spark plugs, CNG tank inspections). Less of an issue with current engines. Recent Fuel Price History Diesel currently $2.05/gallon (~$0.70/mile) CNG cost $0.599/therm (~$0.40/mile) Since 2002, average diesel fuel price for Metro is $2.80/gallon ($0.85 per mile) Since 2002, average CNG fuel price for Metro is $0.51/therm ($0.38/mile).

1/7/2002 4/7/2002 7/7/2002 10/7/2002 1/7/2003 4/7/2003 7/7/2003 10/7/2003 1/7/2004 4/7/2004 7/7/2004 10/7/2004 1/7/2005 4/7/2005 7/7/2005 10/7/2005 1/7/2006 4/7/2006 7/7/2006 10/7/2006 1/7/2007 4/7/2007 7/7/2007 10/7/2007 1/7/2008 4/7/2008 7/7/2008 10/7/2008 1/7/2009 4/7/2009 7/7/2009 10/7/2009 1/7/2010 4/7/2010 7/7/2010 10/7/2010 1/7/2011 4/7/2011 7/7/2011 10/7/2011 1/7/2012 4/7/2012 7/7/2012 10/7/2012 1/7/2013 4/7/2013 7/7/2013 10/7/2013 1/7/2014 4/7/2014 7/7/2014 10/7/2014 1/7/2015 4/7/2015 7/7/2015 10/7/2015 1/7/2016 Dollars Comparison of CNG and Diesel Fuel Prices (cost/mile) 1.60 Metro s Average Fuel Cost Per Mile 2002-2016 Diesel Fuel Cost/Mile CNG Fuel Cost/Mile 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 Metro has run 1.5 billion miles on CNG Currently, CNG fuel is about $0.20/mile less than diesel Over the last 15 years, Metro has saved an average of $0.45/mile on CNG fuel costs

Next Generation CNG Can Near Zero CNG engines reduce fleet emissions? Low NOx Engines with Renewable Natural Gas New Low NOx engine were certified in 2016 at 0.02g/bhp 90% NOx and PM reduction from 2010 EPA/CARB reg s 80% reduction in CO and GHG with RCNG 0.02g/bhp NOx; PM <0.01g/bhp (nearing parity with electric bus?) Low technology risk to RCNG/LoNOx engine Nearly equivalent to battery electric ZE in Los Angeles At LA Metro One 2017 Low NOx engine now in daily operation A second prototype 2018 engine also starting testing here

7 Emission Reductions Compared to 1990 s Diesel Buses One 1980 RTS-II 500+ Low NOx CNG Engines = 1985 1990 1991 2000 2010 2016 NOx (g/hp-hr) 10.8 6 5 4 0.2 0.02 PM (g/hp-hr) 0.59 0.59 0.25 0.05 0.01 0.01 54 540

Analysis of Low Emission Options for Metro Bus Ramboll/Environ (Technical Consultant) Commissioned to review technologies and recommended options in June 2015 Study conducted in 2015-2016 Preliminary Draft in Feb 2016 Follow-up Interviews with key stake-holders in spring/summer 2016 Next update being prepared for release in October 2016

Projected Fleet Emissions 2015-2055 * Of relevance to ARB: LNOx & RNG scenario has lower overall total GHG emissions than either EV or FC scenarios Of relevance to SCAQMD: LNOx & RNG scenario has similar total in-basin NOx emissions to EV scenario LNOx & RNG has lower total in-basin NOx emissions to FC scenario Notes: * RNG assumed to be 100% landfill gas. If RNG included gas from wastewater treatment plants and/or food waste total NOx, CO 2, GHG, emissions from LNOx+RNG would be lower.

Potential NOX Reductions

Potential GHG Reductions

Emission Reduction Cost Effectiveness ($/ton) LNOx + RNG Depot Charge ELECTRIC BUS Depot & Inroute SMR FUEL CELL BUS ELECTR Cost Increase (NPV $ million) $173 $768 $376 $1,379 $1,680 Compared to Baseline GHG Reduction (million tons) 11.4 8.2 8.2 3.3 6.7 In-basin NO x Reduction (tons x 1000) 2.72 2.83 2.84 0.07 2.50 Cost Effectiveness ($/ton) 1 GHG $15 $94 $46 $419 $250 NO x $64,000 $272,000 $133,000 $20,200,000 $671,000 1 Assumes that 100% of cost increase attributed to each pollutant

Metro s Next Steps Immediate (FY18) adoption of RNG/LNOx buses for urgently needed AQMP NOx reductions and most expeditious GHG reductions for our region New Buses and Engine Repowers Metro has a 1,000 bus RFP Underway Contract awards in 1Q2017, deliveries thru 2022 Includes purchase of up to 800 new CNG buses with Low NOx engines. Options for up to 200 ZEB battery electric buses. We will also repower existing bus fleet with Low NOx engines starting in FY18 at 200 buses/year (goal of 100% CNG fleet should be low NOx by 2025). Transition to ZEBs when/where economically feasible for additional out-year reductions Developing plans to electrify Orange Line and Silver Line BRT Services (85 buses) Near term ZEB efforts will focus on electric buses rather than fuel cell buses Preserve flexibility to adjust plans as ZE & low emission technologies evolve Project total costs of a potential ZE fleet transition plan Retain outside engineering/architecture firm(s) to start developing fleet electrification plans and cost estimates

n Drayton Angeles Metro e Santa Fe Ave 63-1-1, Suite 100 Angeles, CA 90013-617-6285 ytonj@metro.net