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Phoenix Sky Harbor Airport

Natural Gas Vehicles“America’s Best Kept Secret”

AGTADenver, ColoradoJames N. HargerSeptember 26, 2006


Company Background Largest provider of vehicular natural

gas in North America

Design, build & operate NG stations– Over 160 in operation

• Serve 17 Airports

– Deliver LNG to third parties

25% growth for 2005 vs. 2004– 57+ million gallons sold

For 2006:– Continued growth!

• 70+ million gallon annual run rate based on June sales Phoenix Transit

San Francisco International Airport


Clean Energy’s Airport Stations

• Albuquerque• Dallas Fort Worth• Dallas Love Field• Denver • Baltimore• La Guardia

• Burbank• Long Beach • Los Angeles• Oakland • Orange County John Wayne• Palm Springs• San Diego• San Francisco

• Phoenix Sky Harbor• Tucson• Seattle-Tacoma

Dallas Love Field


Why Natural Gas for Airport Applications Clean

– Only alternative with EPA/CARB certified vehicles that are significantly below diesel, ethanol, gasoline, hydrogen, etc.

Cheap– Small energy production to produce one gallon– Pipeline infrastructure available at most airports– Ratio, ($ BBL Crude)/($ MMBTU NG) > 12

• 8 gallons energy/MMBTU– $1/MMBTU = $.125/gallon at the pump

Domestic– 97% of all natural gas comes from N. America– Reserves in excess of 75 years


How Clean are LD NGVs?

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

g/m

i

NMO

G (X10)

CO NOx (X10)

PM (X100)

HCHO (X100)

CA LEV II Emissions Standards, LDVs <8,500 lbs.

LEV ULEV SULEV ZEV

’06 BAF Crown Victoria meets SULEV levels’06 Honda Civic GX meets AT-PZEV levels

Dirtiest

TLEV

LEV

ULEV

SULEV

PZEV

AT-PZEV

ZEV

Cleanest


EPA and CARB Scorecard

2006-07 Civic GX

2006-07 CNG Silverado/Sierra & SUVs 2006-07 CNG Express 2007 E350

2006 Gasoline E350

2006-07 Crown Victoria


HD Diesel Vehicles are a Health Threat to Your Community!

Diesel exhaust has been declared a toxic air contaminant by California Air Resources Board

There is a virtual asthma epidemic in the U.S. and diesel trucks are a primary cause

Diesel emissions are an increasingly recognized cancer threat

Vehicle emissions are particularly damaging to the health of children and elderly


PoLA and PoLB generate 25% and 24% of the region’s NOx and PM emissions, respectively

CARB estimates health care costs from Goods Movement total $20B Annually

– 2,400 premature deaths, 2,800 hospital admissions (heart or lung), 5,100 acute bronchitis cases, 62,000 asthma/other respiratory cases, and 4.4M absences/restricted days.

Sources: SCAQMD

Impacts of Goods Movement on Health


Cumulative Toxic RiskSouth Coast Air Basin (1998-1999)Cumulative Toxic RiskSouth Coast Air Basin (1998-1999)

406in a million

1,400in a million

Without Diesel With CA Diesel Toxicity


2010 Stds

2004 Stds

2007 Avg. Stds

NOx + NMHC (g/bhp-hr)

PM (g

/bhp

-hr)

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.0 0.5 1.0 1.5 2.0 2.5 3.0

DieselNatural Gas

Natural Gas Vehicles are Clean

Source: SCAQMD, TAO Office, 5.19.06


Economics, Not Just Air Quality

Tax Credits– Federal can cover up to 80%– Some State (CO & NY)

Grants– US DOE, State and Local

Fuel Price– Substantially below gasoline & Diesel– Long term fixed price available


Best NGV Airport Applications Transit

– Employee Shuttles– Rental Car Shuttles

Door to Door Shuttles

Taxi

Airside, Case by Case– Product Available?– Economics?

• Licensed for Airside?• Diesel >5,000 gallons/year

Los Angeles International Airport

Denver Shuttle Fleet


Transit Rental Car Buses

– 4 mpg @ PHX Employee & Parking

Shuttle Buses– DFW, LAX, PHX &

SEA Consolidated Hotel

Shuttle @ LAX & SFO– Private Parking

Shuttles being considered

Phoenix Rental Car Shuttle Bus Fleet

LAX Consolidated Hotel Shuttle


President’s Energy Bill

Allows for Federal Tax Credit of up to 80% of incremental cost of dedicated NGV based on GVWR

Provision in bill for “Seller” to take tax credit and pass through to non-taxable entities (Cities, Transit, etc.)

GVWR < 8,500 lbs= $5,000 (80% = $4,000)– Honda GX & Ford Crown Victoria

GVWR 8,500-14,000 lbs= $10,000 (80% = $8,000)– Sierra/Silverado pickup, Express/E350 van & GM SUVs

GVWR 14,000-26,000 lbs= $25,000 (80% = $20,000)

– Ford E450 or GM 8.1L Shuttle BusGVWR > 26,000 lbs= $40,000 (80% = $32,000)

– Transit Bus/Shuttle, Refuse Truck & Tractor


E450 CNG Shuttlewith Federal Tax Credit

$1.999/gallon through 2007E450 Van Cost-

CNG Option: Gasoline Option: Diesel Option:

Initial Shuttle Cost $44,000 $44,000 $48,000

Dedicated CNG $16,400 n/a n/a

Federal Tax Credit -13,120 n/a n/a

Net Cost $47,280 $44,000 $48,000

Net Cost Difference of CNG Vehicle is $3,280 ($720)


Taxi & Shuttle

BAF, Baytech & ECO Fuels– CARB & EPA Certified

• SULEV for HOV– E Van available for 2007

DaimlerChrysler– Import dedicated Sprinter

Van to US Market


Energy Supply Outlook – We’ve Peaked on OilOIL DEMAND

grows each year in a healthy world

economy

PRODUCTION reaches a maximum & then declines

(PEAKS)

Supply cannot meet

demand

• PRICES INCREASE

• SHORTAGES DEVELOP

ÉÉÉÉÉÉ

2006


Why Will Conventional Oil Production Peak?

Time - Decades

Pro

du

ctio

n

Individual Oil Fields Peak

1945 2000YearP

rod

uc

tio

n

U.S Lower 48 States

The world will peak

(All regions)

Regions Peak (Many oil fields)


We’re Finding Much Less Than We’re Consuming

0

-20

20

40

1940 2000Year

Net of Annual Reserve

Additions Minus Annual

Consumption

Billions of Barrels

World consumes > 2 barrels for each new barrel added


Phoenix Sky Harbor Rental Car Center


Phoenix Sky Harbor Eastside Station


Los Angeles International Airport


Seattle Tacoma International Airport


James N. HargerSenior Vice President

Clean Energy(562) 493-2804 x223

[email protected]

phoenix sky harbor airport

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