USING NATURAL GAS AS A TRANSPORTATION FUEL – STATE OF THE OPPORTUNITY IN THE REGION

Scott A. Schriner, CCM, PE, LEED Green Associate

May 12, 2015

• Available Natural Gas Vehicles, Conversion Kits, and Engines

• Current Fueling Station options • Best Niche Conversion Opportunities • Vehicle Storage and Maintenance Considerations • Vehicle Considerations • Bottlenecks • Economics • Summary of State and Federal Grant Funding Opportunities • Resources Regarding Alternative Fuel Vehicles

Agenda

• PennDOT Report of Vehicle Registrations

* numbers do not account for mass transit vehicles LNG vehicles are not depicted in this annual report

• Clean Cities 2015 Vehicle Buyer’s Guide • Clean Cities Guide to Alternative Fuel and Advanced

Medium and Heavy Duty Vehicles

Available Natural Gas Vehicles, Conversion Kits, and Engines

Year Total Registered

Natural Gas Propane

2013 11,616,715 289* 241

2014 11,715,722 460* 380

If you are considering going to an alternate fueled vehicle, there are two options: 1. OEM (Original Equipment Manufacturer)

– EPA certified clean alternative fuel conversion system manufacturers ▪ IMPCO, Landi Renzo USA, Altech-Eco, BAF Technologies, NatGasCar,

Powerfuel CNG Conversion Systems, Icom North America, American Alternative Fuel, Blossman Services, Roush Industries as examples

▪ List of Natural Gas Vehicle Providers in PA 2. Conversion − List of CNG Conversion Providers in PA − Engines must meet EPA and California Air Resources Board (CARB)

requirements − Licensed technician associated with that manufacturer should

perform the installation − Not all vehicles are candidates for conversion

Available Natural Gas Vehicles, Conversion Kits, and Engines

• Dedicated – runs strictly on natural gas; spark ignition • Dual Fuel – runs on diesel and natural gas at the same time • Bi-Fuel – runs on either gasoline or natural gas • Some currently available OEM passenger and light duty

vehicles – Honda Civic – Chevrolet 2500/3500HD – Chevrolet Express 2500/3500 – Chevrolet Express Cutaway – Chevrolet Impala – Ford F250/350/450/550/650 – Ford Transit Connect – Ford E-350/450 – Ram 2500 – GMC Savana 2500/3500 – GMC Savana Cutaway 3500/4500 – GMC Sierra 2500/3500HD

Available Natural Gas Vehicles, Conversion Kits, and Engines

• Fast Fill – Stations can cost from $150k to several million dollars – Anchor fleet is needed – Cascade fast-fill is like going to a Sheetz and filling up – Buffered fast-fill does not require as much storage (hence less

cost) • Time Fill

– Ideal for fleets of various sizes – Most economical as there are no storage requirements – Home Refueling Appliances (HRA) for residents

• Permitting and Operating a CNG Fueling Station in PA – CNG Vehicle Fuel Facility Application to Install (PA Dept of Labor

and Industry) – CNG Dispenser Registration and Inspection (PA Dept of Agriculture) – Alternative Fuel Tax License (PA Dept of Revenue)

Current Fueling Station Options

Current Fueling Station Options

Current Fueling Station Options

Current Fueling Station OptionsTypical Components of Cascade and Buffered Fast Fill Stations

Current Fueling Station Options

Current Fueling Station OptionsTypical Time Fill Station

Current Fueling Station Options

Fuelmaker Cubogas Pocket can be either a fast fill or a time fill station Ability to add external storage and also would need a dryer (blue tank).

CNG in a Box Example

Current Fueling Station Options

Galileo CNG Systems…

Gigabox

Microbox The original CNG “Plug-and-play” all encompassed system for commercial or large fleet use.

CNG in a Box Example

Current Fueling Station OptionsHome Refueling Appliance Examples

Individual Vehicle ApplicationOne or More Vehicle Applications

FMQ 2.5 FMQ 10

Current Fueling Station Options

Nationwide as of April 30, 2015:

Public CNG FS – 823 Pvt CNG FS – 726 Public LNG FS – 73 Pvt LNG FS – 38 Source: NGV Today

Current Fueling Station Options• PennDOT P3 CNG initiative

– Potential for up to 36 sites at the Commonwealth’s Transit Agencies

– Some sites will have a public access fuel dispensers – Four (4) firms shortlisted

▪ Clean Energy, Newport Beach, CA ▪ GP Strategies, Escondido, CA (L.R. Kimball, Ebensburg, PA;

McCrossin, Bellefonte, PA; Gladstein Neandross & Assoc., Santa Monica, CA)

▪ Spire, St. Louis, MO (Institute of Gas & Technology, Des Plaines, IL; Raymundo Engineering Co., Walnut Creek, CA; Parsons Brinckerhoff, Pittsburgh, Lancaster, Camp Hill, Philadelphia; Dual Fuel Services, Inc., Batavia, IL)

▪ Trillium CNG, Salt Lake City, UT (Larson Design Group, Williamsport, PA)

– RFP under development by PennDOT – Includes facility renovations as part of the P3

• CNG Stations

Current Fueling Station Options

30 public CNG stations as of 4/23/15 Source: AFDC

Station Name City Station Name City

Bee Green CNG Ambridge Martindale Autogas New Holland

Get-Go Cranberry Cranberry Township American Natural Energy Centre Pittsburgh

Heath Oil CNG Barkeyville VNG - BP Philadelphia

River Valley Transit Williamsport EQT - Strip District Pittsburgh

Clean Energy - Tyburn LLC Fairless Hills Clean N' Green Pen Argyl

GAIN Clean Fuel Johnstown Clean N' Green Washington"O" Ring CNG Fuels Systems - Innovative Entrepreneurs Inc

Coolspring "O" Ring CNG Fuels Systems - Innovative Entrepreneurs Inc

Punxsutawney

Clean N' Green Bristol Sunoco Hunker

CNG Fuel LLC Shippenville Uni-Mart Exxon Allentown

Clean Energy - Uni-mart State CollegeClean Energy - Philadelphia International Airport - Wally Park Lester

Palo CNG Clarion Clean Energy - Berwyn PECO Berwyn

Dandy Mini-Mart Towanda Dandy Mini-Mart Sayre

White Oak Farms Inc Dayton "O" Ring Fueling Systems Brookville

Giant Eagle GetGo Pittsburgh Clean Energy - Eddystone PECO Eddystone

Wayne Township Landfill Lock Haven Clean Energy - Carlisle Flying J #708 Carlisle

Trillium CNG Pottsville

• LNG Station

• LPG Stations

Current Fueling Station Options

58 public propane and 1 LNG fueling stations as of 4/23/15 Source: AFDC

Station Name CityClean Energy - Carlisle Flying J #708 Carlisle

Station Name City Station Name City

U-Haul Williamsport AmeriGas StroudsburgU-Haul Lancaster U-Haul GlenshawU-Haul Erie ProGas Inc AliquippaU-Haul Harrisburg U-Haul GlensideWilliams Wesco Inc Gibsonia Flying J New MilfordU-Haul Gettysburg U-Haul PhiladelphiaU-Haul Washington Eddinger Propane BallyGreenfield WoGo Lancaster Self Heating & Cooling Inc HorshamFerrellgas Manheim U-Haul Allentown

Sunoco Honesdale Koppy's Propane Inc Williamstown

U-Haul Chambersburg Pilot-Flying J Smithton

+

• LPG Stations (Cont’d)

Current Fueling Station Options

Station Name City Station Name City

Molly's Convenience Store Manheim U-Haul Pittsburgh

Modern Gas Sales Inc Reeders U-Haul Philadelphia

Flying J Brookville BJ Tool Myerstown

Combined Energy Services Dingmans Ferry U-Haul Philadelphia

U-Haul Coraopolis Flying J Carlisle

"O" Ring Fueling Systems Brookville U-Haul State CollegeMartindale Autogas New Holland U-Haul PhiladelphiaU-Haul Colmar U-Haul Scranton

Ephrata WoGo Ephrata U-Haul MonroevilleAmeriGas Aliquippa Keystone Propane Greentown

Ferrellgas Home ProGas Inc ZelienopleU-Haul Norristown Moyer's & Son Gas Service FreeburgDeiter Brothers Bethlehem U-Haul AltoonaU-Haul Reading AmeriGas SomersetFlying J Mill Hall Tommy Carr Tire & Auto Service Inc ChalfontU-Haul Pleasant Hills AmeriGas EverettKeystone Propane Throop AmeriGas MercerPalo CNG Clarion U-Haul Wilkes Barre

• Small Fleets • Street Sweepers • Waste Haulers (Refuse, Recycling, and Rollback) • Concrete Mix Trucks • Taxi Companies (Ford Transit) • Private Para-Transit Providers

Best Niche Conversion Opportunities

NFPA Defines…

• Minor Repair Area as: – A building or portion of a building used for lubrication, inspection,

and minor automotive and maintenance work such as engine tune-ups, replacement of parts, fluid changes, brake system repairs, tire rotation, and similar routine maintenance work, including associated floor space used for offices, parking, or showrooms. [NFPA 30A:3.3.12.2]

• Major Repair Area as: – A building or portion of a building where major repairs, such as

engine overhauls, painting, body and fender work, and repairs that require draining the motor vehicle fuel tank are performed on motor vehicles, including associated floor space used for offices, parking, or showrooms. [NFPA 30A:3.3.12.1]

Vehicle Storage and Maintenance Considerations

Vehicle Storage and Maintenance Considerations

• Parking/Storage Areas – No specific CNG Code requirements.

• Minimum Ventilation – IMC 403.3 requires 0.75 CFM/ft²  exhaust  airflow in repair garages.

• Minor Repair Area – No specific CNG Code requirements per NFPA 30A or IFC. – IMC 502.16 requires 5 ACH continuous or ventilation interlocked with gas

detection system or ventilation interlocked with lights. • Major Repair Area

– Ventilation ▪ NFPA 30A /NFPA 52 - 5 ACH (continuous or ventilation interlocked

with gas detection system). ▪ IMC 502.16 - 5 ACH (continuous or interlocked with gas detection

system or interlocked with lights - CNG only).

Vehicle Storage and Maintenance Considerations

• Major Repair Area (continued) – Heating

▪ No open flames ▪ Surface temperatures less than 750°  F.

– Electrical (NFPA 30A and NFPA 70/NEC) ▪ Ceiling: Ventilate within 18” of ceiling at 1 CFM/Ft²  or  space  is  Class I, Div. 2. ▪ Floor: Ventilate within 18” of floor at 1 CFM/Ft²  or  space  is  classified.

– Adjacent Spaces – Ventilation at 4 ACH or pressurize spaces or seal all openings. – Architectural

▪ Seal doors, walls, and walls penetrations between major repair areas and adjacent spaces..

▪ Warning Signage.

• Best Practice – All areas, install approved gas detection system interlocked with ventilation fans, alarm, garage bay doors, and heating system.

*All other IBC, IMC, and NFPA Code Requirements for Maintenance Garages must be met.

Vehicle Considerations

• Range is not as good as gasoline or diesel • Engine burns hotter • Fuel economy similar to diesel • CNG tanks are heavier • May not have to change oil as frequently as it burns cleaner • Energy value is not as good as diesel (torque and

horsepower) • Training available for your mechanics • Safer vehicle to operate

– Explosive Limits very limited 5%-15% concentration with air – Lighter than air; so it dissipates – Onboard storage tanks virtually indestructible

• Lack of knowledge about compressed natural gas vehicles, maintenance

• Insufficient infrastructure • Education of the public, insurance companies,

Authorities Having Jurisdiction (AHJ) • Available funding • Price of gasoline and diesel today • NIMBYism • Cost of CNG fueling stations • Cost of a Natural Gas Vehicle (OEM or conversion) • General Public

Bottlenecks

• From NGVAmerica, Return on Investment (ROI) estimates (based on $1.30/GGE savings): – Sedan: 5 years no grant; 2.7 years with grant assistance – Passenger Van: 1.9 years no grant; 1 year with grant assistance – Step Van: 3.3 years no grant; 1.3 years with grant assistance – Refuse Truck: 1.9 years no grant; 0.95 years with grant assistance – Class 8 Rig: 2.25 years no grant; 1.3 years with grant assistance

Economics

Economics

• Cost of Conversion (retrofit). Some general figures that work as estimates for conversions: – Sedans: $7,000-$10,000 – Small Vans (Transit Connect): $9,000-$11,000 – Pickups: F250/350 series: $13,000-$14,000 – Pickups: F450/550/650: $23,000-$25,000 – Dump Trucks: $30,000-$50,000

• The difference in pricing is mainly the type of CNG tanks (the lightest are the most expensive); and the number/volume of the tanks. • Sedans normally carry 8-10 GGE ; Small Vans:

12-18 GGE; Small Pickups: 18-21 GGE; Dump Trucks 60-80 GGE.

Data from Clean Energy and BAF and may not be current.

Economics

• Some starting MSRPs of NGVs from the OEM: – Chevrolet Impala $38,210 – Ford Super Duty (F-350/450/550) $31,400 – Ford Super Duty (F-650) $55,595 – Ford Transit Connect $22,000 – Ford Transit 150/250/350 $29,556 – Honda Civic $26,640

OEM = Original Equipment Manufacturer

Data from Clean Cities 2015 Vehicle Buyer’s Guide.

At the State level…

• DCED’s Alternative and Clean Energy (ACE) program is still available for CNG infrastructure.

• As far as funding for CNG vehicles, DEP Alternative Fuels Incentive Grant (AFIG) Rebate program for residents ($1000/new vehicle) is on-going.

• DEP anticipates opening the AFIG grant program for alternative fuel fleet vehicles in 2015, but they have no details yet on when that would be, eligibility, or the amount of funding available, etc.

• Small Business Advantage Grant Program provides 50% matching grants up to $9,500 for PA small businesses to adopt or acquire energy efficient or pollution prevention equipment or processes.

Summary of State and Federal Grant Funding Opportunities

At the Federal level…expired at the end of 2014.

• Alternative Fuel Excise Tax Credit of $0.50/GGE • Alternative Fuel Infrastructure Tax Credit of 30% of cost

not to exceed $30,000. And residents eligible for up to $1,000 credit for home refueling appliances.

• Alternative Fuel Mixture Excise Tax Credit of $0.50/GGE • Alternative Fuel Tax Exemption

– Common nontaxable uses include: on a farm for farming purposes, intercity and local buses, school bus, exclusive use by a nonprofit educational organization for example.

Summary of State and Federal Grant Funding Opportunities

Current List of DCED ACE Grantees

58 Alternative Fuel (CNG, LNG) projects as of 3/10/15

Beemac Trucking LLC Beemac Trucking CNG Beaver

Birkmire Trailer Company CNG Filling Station Erie

Clean Energy Carlisle Flying-J Liquefied Natural Gas Fueling Station Cumberland

Desdemona Holdings LP American Natural Station Square CNG Development Allegheny

LT Verrastro, Inc. L.T. Verrastro Filling Station Lackawanna

"O" Ring CNG Fuel Systems, Inc. Borough of Chambersburg CNG Project Franklin

Sunoco CNG Refueling - PA Turnpike King of Prussia Service Plaza Montgomery

VNG.CO LLC dba V NG.CO 2901 Abbottsford Philadelphia

Clean Energy dba Clean Energy Inc. New Oxford CNG Station Adams

Clean Energy dba Clean Energy Inc. King of Prussia CNG Station Montgomery

Halifax Area School District High Performance Building project Dauphin

Clean Energy dba Clean Energy Inc. Allentown LNG Public-Access Fueling Lehigh

REV LNG, LLC REV LNG Small Scale Liquefaction Project Bradford

Love's Travel Stops & Country Stores Love's Mifflin CNG Station Project Columbia

Love's Travel Stops & Country Stores Love's Jonestown CNG Station Project Lebanon

Love's Travel Stops & Country Stores Love's Carlisle CNG Station Project Cumberland

Silvi Concrete of Chester County, LLC Downingtown Natural Gas Station Chester

Constructional Dynamics, Inc. Limerick Natural Gas Station Montgomery

Waste Management of Pennsylvania, Inc. WM Pen Argyl Grand Central Station CNG Station Project Northampton

Clean Energy dba Clean Energy Inc. Pittston Public-Access LCNG Fueling Station Luzerne

Clean Energy dba Clean Energy Inc. Pottsville Public-Access LCNG Fueling Station Schuylkill

Clean Energy Trache A LNG Plant, LLC PA LNG Facility Eastern PA

Ariel Holdings LP American Natural Harmar CNG Project Allegheny

Hypatia Holdings LP American Natural Wexford CNG Project Allegheny

Clean Energy dba Clean Energy Inc. Warminster PECO Public-Access CNG Station Bucks

Clean Energy dba Clean Energy Inc. Berwyn PECO Public-Access CNG Station Chester

Clean Energy dba Clean Energy Inc. Coatesville PECO Public-Access CNG Station Chester

Clean Energy dba Clean Energy Inc. Phoenixville PECO Public-Access CNG Station Chester

Current List of DCED ACE Grantees

Clean Energy dba Clean Energy Inc. Mill Hall Public-Access CNG Station Clinton

Clean Energy dba Clean Energy Inc. Carlisle Cumberland

Clean Energy dba Clean Energy Inc. Alternative and Natural Gas Delaware

Clean Energy dba Clean Energy Inc. Concordville-Glen Mills Lehigh Gas Public-Access CNG Station Delaware

Clean Energy dba Clean Energy Inc. Lehigh Gas Public-Access CNG Station Lehigh

Clean Energy dba Clean Energy Inc. Plymouth Meeting PECO Public-Access CNG Station Montgomery

Clean Energy dba Clean Energy Inc. Smithon Public-Access CNG Station Westmoreland

CNG Motor Fuels of Clearfield County, Inc. New CNG Station in Dubois, PA Clearfield

CNG Motor Fuels of Jefferson County, LP Brookville CNG Station Expansion Project Jefferson

CNG Motor Fuels of Jefferson County, LP Punxsutawney CNG Station Expansion Project Jefferson

CNG Motor Fuels of Somerset County LLC New CNG Station in Somerset, PA Somerset

Export Fuel Company, Inc. New CNG Station in Greensburg, PA Westmoreland

Integrys Transportation Fuels dba Trillium CNG Schuylkill County CNG Station Project Schuylkill

Sunoco, Inc. Sunoco CNG Refueling - Pittsburgh Airport Allegheny

Current List of DCED ACE Grantees

Sunoco, Inc. Sunoco CNG Refueling - PA Turnpike New Staton Plaza Westmoreland

VNG.CO LLC 400 W. Street Road Bucks

VNG.CO LLC 3001 W. Germantown Pike Montgomery

Clean Energy dba Clean Energy Inc. Allentown LCNG Lehigh

United Parcel Service The Commonwealth's LNG Conversion Inititive Cumberland

Clean Energy dba Clean Energy Inc. Clean Energy South Philadelphia Public-Access CNG Station

Philadelphia

Constellation New Energy, Inc. Commonwealth Energy Group CNG Station Initiative Lackawanna

Integrys Transportation Fuels dba Trillium CNG HIA Public Access CNG Fueling Station Dauphin

Snyder Brothers, Inc. Snyder Brothers Inc. CNG Fueling Station Armstrong

Sunoco, Inc. Sunoco CNG Refueling - Canonsburg Washington

Sunoco, Inc. Sunoco CNG Refueling - Chambersburg Franklin

U.S. Venture, Inc. Fairless Hills Public CNG Filing Station Bucks

U.S. Venture, Inc. Fredericksburg Pacific Pride Station Lebanon

Clean Energy dba Clean Energy Inc. Clean - Centre County Public Access CNG Station Centre

Great River Energy, LLC The Easton PA Public CNG Station Initiative Northampton

United Parcel Service UPS New Stanton CNG Conversion Initiative Westmoreland

Current List of DCED ACE Grantees

• Alternative Fuels Data Center, US Department of Energy – afdc.energy.gov

• Clean Cities Program – EPAct [Eastern PA Alliance for Clean Transportation] – http://www.ep-act.org/

• NGVAmerica – http://www.ngvamerica.org/

• NGVi – http://www.ngvi.com/

• PA Department of Environmental Protection – http://www.portal.state.pa.us/portal/server.pt/community/

act_13/20789 • PA Department of Community and Economic Development

– http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/alternative-and-clean-energy-program-ace

Resources Regarding Alternative Fuel Vehicles

• The following documents have been prepared by the Ben Franklin Technology PArtners in support of this project:

– NGV Maintenance, Storage, and Infrastructure Development Guide

– NGV Fueling Stations and Current Projects: Pennsylvania – Natural Gas Conversion in the Transportation Industry – CNG Conversion Providers in PA – Certified Natural Gas Vehicle (NGV) Maintenance

Personnel: Pennsylvania – PA Companies that Provide Natural Gas Vehicles

Resources Regarding Alternative Fuel Vehicles

USING NATURAL GAS AS A TRANSPORTATION FUEL – STATE OF THE OPPORTUNITY IN THE REGION

Scott A. Schriner, CCM, PE, LEED Green Associate sschriner@gfnet.com

(717) 599-2634c (717) 763-7211, ext. 2183