Clean Safe Affordable Domestic Abundant Reliable Economic ...

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Clean Safe Affordable Domestic Abundant Abundant Reliable Economic Development 1

Transcript of Clean Safe Affordable Domestic Abundant Reliable Economic ...

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– Clean– Safe– Affordable– Domestic– Abundant– Abundant– Reliable– Economic Development

1

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Americans spend about $1 billion each day on f i ilforeign oil.

Many of the countries that supply foreign oil to the Many of the countries that supply foreign oil to the U.S. are converting their vehicle fleets to NGVs so that they can sell us their oil.

Right now there are about 110,000 NGVs in the U.S. There are currently about 12 million NGVsU.S. There are currently about 12 million NGVs worldwide and that number is expected to increase to 28.7 million by 2015.

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In February 2010, the U.S. spent $24.6 billion on imported oil If not burdened by this addictionimported oil. If not burdened by this addiction

what could our country have done.

• We could have hired over 364,000 new teachersWe could have hired over 364,000 new teachers• We could have funded highway repairs for nearly

seven years.• We could have built 32,407 new elementaryWe could have built 32,407 new elementary

schools

Information courtesy of Pickens Plan

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• Reduces emissions of:

• CO2 by 25%

• Carbon Monoxide by 90%

• Mercury by 100%• Mercury by 100%

• Sulfur Dioxide by 99.9%

• Particulates by 91 3%Particulates by 91.3%

• Nitrogen Oxide by 78.4%

Replacing one diesel garbage truck with aReplacing one diesel garbage truck with a natural gas garbage truck can reduce emissions equivalent to removing 325 cars from the road.

Source: Environmental Protection Agency, Naturalgas.org 4

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2006 2006 –– 2007 Ozone Monitoring Data 2007 Ozone Monitoring Data for Alabamafor Alabamafor Alabamafor Alabama

Current Possible Worst CaseCounties in Red (Chart 2) already exceed new 75 ppb ozone standardCounties in Red (Chart 2) already exceed new 75 ppb ozone standard

Source: ADEM

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• Lighter than air

• Higher ignition temperature

• StrongerStronger components and storage systems

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• U S retail CNG prices range from under $1 toU.S. retail CNG prices range from under $1 to more than $2 per gasoline gallon equivalent as compared to $3 per gallon gasoline and $3.40 p p g gdiesel.

• This is why AT&T, UPS, Verizon, Waste Management etc are switching to natural gasManagement, etc. are switching to natural gas –they can save millions on fuel costs.

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• 98% of the natural gas consumed in the U.S. is produced in North America

• 85% from U.S.

• 13% from Canada13% from Canada

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Crude oil imports have historically led total U.S. imports of goods and services

Top U.S. Imports by Category-January 2010

$18.6

$8.4$8.6

$11.6

8

12

16

20

s of

U.S

. $

imports of goods and services◦ Crude oil imports comprised nearly 15%

of total imported goods in January 2010 ◦ Net crude imports accounted for half

(49.6%) of the foreign trade deficit of $37 1 billi f th th

$5.3

0

4

8

Crude oil Vehicles TV's, VCR's,etc.

Officemachines

Electricalmachinery

Bill

ion

U S C d I t J 2010 $37.1 billion for the month

Imports from OPEC member countries were more than twice that of the next closest

U.S. Crude Imports-January 2010

3,948

1,8822,0002,5003,0003,5004,0004,500

s of

Bar

rels

per

Day

that of the next closest country

The transportation sector

271293

1,033

0500

1,0001,500

OPECMembers

Canada Mexico Colombia Brazil

Thou

sand

s

2009 U S Li id F l C ti b S t presents the biggest opportunity for imported petroleum displacement

2009 U.S. Liquid Fuel Consumption by Sector

13,480

6 000

8,000

10,00012,000

14,000

16,000

of B

arre

ls p

er D

ay

9Source: EIA, U.S. Census Bureau‐Foreign Trade

210980

4,400

0

2,0004,000

6,000

Transportation Industrial Residentialand Commercial

ElectricPower

Thou

sand

s

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Energy Information Administration: By 2017, 50 billion gallons of diesel fuel is expected to be useddiesel fuel is expected to be used annually.

Natural gas could displace 20 Natural gas could displace 20 percent of that diesel fuel by 2020 without negatively affecting current natural gas supplies.current natural gas supplies.

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AbundantAbundant

CodyCody

MowryMowry

GammonGammon

BakkenBakken

AntrimAntrim

NiobraraNiobrara

Baxter/MancosBaxter/Mancos

MancosMancosMulkyMulky

New AlbanyNew Albany

Marcellus

PierrePierre

Barnett/WoodfordBarnett/WoodfordFloyd-NealFloyd-Neal

LewisLewis

Haynesville

FayettevilleWoodford

Barnett

Eagle Ford/PearsallEagle Ford/Pearsall

Haynesville•U.S. natural gas deposits are far more widespread and larger than U.S. coal deposits.•U S has more natural gas Natural gas producing state

Source: EIA•U.S. has more natural gas reserves than Saudi Arabia has oil reserves.

Natural gas producing stateNon producing state

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Nationwide natural gas distribution system Nationwide natural gas distribution system is already in place

Proven technology for vehicles and infrastructure

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Altech-EcoAmerican HondaBAF TechnologiesBaytechBaytechFuelTekIMPCONatural DriveCumminsESIWestport Innovations

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Transit bus: 12-15,000 gal/yr (1.7-2.1 MMcf) OTR freight truck: 12,000 gal/yr (1.65 MMcf) Garbage truck: 9,000 gal/year (1.12 MMcf) Airport shuttle: 5,800-7,200 gal/yr (0.8-1.0 MMcf) Delivery truck: 4500-5,500 gal/yr (0.6-.75 MMcf) Taxi cab (@75K /year): 5,000 gal/yr (0.65 MMcf) School bus: 2,200-2,800 gal/yr (0.03-.035 MMcf) Commercial van: 1600-1800 gal/yr (.02 MMcf) Commercial van: 1600 1800 gal/yr (.02 MMcf)

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Light duty natural gas vehicle options are increasing◦ GM providing OEM CNG vans; pickup trucks

coming sooncoming soon◦ Chrysler/Dodge to come out with 2012 Model

Year CNG Bi-Fuel Dodge RamYear CNG Bi Fuel Dodge Ram◦ Chrysler working on bringing Fiat CNG sedans to

the US market◦ Honda produces dedicated CNG Civics (GX)

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GVW - 26,000+ lbs. ◦ LCF/LCOE models: Crane Carrier LET, Autocar

Xpeditor Peterbilt LCF 320 Condor MackXpeditor, Peterbilt LCF 320 , Condor , Mack TerraPro)

◦ Conventional: Freightliner M2, KenworthT8SH/T440

◦ All with 2010-compliant CWI ISL-G 8 9L 320hp◦ All with 2010-compliant CWI ISL-G 8.9L 320hp engine

MPG: 2.5 – 3.0 (lots of idle and PTO time) Fuel Use: 37gge/day; 9,250dge/yr Natural Gas Premium: $45,000 Annual fuel savings: $13,875 Simple Payback: 3.25 years (assumes no

t d i b d $1 50 i /DGE)grants and is based on $1.50 savings /DGE)

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GVW > 26 000# lbs GVW – > 26,000# lbs.◦ Int’l 4000 Series with ESI 7.6L NG,

Freightliner M2 MPG 4 5 5 0 MPG: 4.5-5.0

Fuel Use: 17.5 DGE/day; 4900 DGE/yr CNG Premium: $50 000 CNG Premium: $50,000 Annual fuel savings: $7,350 Simple Payback: 6.8 yrs (assumes no

grants and is based on $1.50 /DGE savings)

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Sample Applications (Bakery/Snack Food, Linen))

GVWR -14,000-19,500lbs.◦ Freightliner Custom Chassis MT45 w 5.9 B

Gas+Gas+ MPG: 6.0, 87mpd x 6 days/wk, 27K/yr Fuel Use: 14.5DGE/day; 4,500GGE/yr CNG Premium: $28,000 Annual fuel savings: $6,750

Simple Payback: 4 1 years Simple Payback: 4.1 years(assumes no grants and is based on $1.50 savings/DGE)

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GVWR: > 8500 and < 14,000 lbs. ◦ Ford E-350 passenger van

h◦ Chevy/GMC 3500 passenger van MPG: 14 City/Hwy, 75K miles/year Fuel Use: 17 GGE/day; 5350 gge/yr Fuel Use: 17 GGE/day; 5350 gge/yr CNG Premium: $16,000 Annual fuel savings: $8,025 Simple Payback: 2 years (assumes no grants

and is based on $ 1.50/GGE savings)

Most shuttle services run their vehicles up to 500K+ miles!!

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GVWR: <8500 lbs. ◦ Honda Civic GXMPG 30 Cit /H 36K il / MPG: 30 City/Hwy, 36K miles/year

Fuel Use: 5 GGE/day; 1200 GGE/yr CNG Premium: $6500 CNG Premium: $6500 Annual fuel savings: $1,800 Simple Payback: 3.6 yrs

(assumes no grants and is based on $1.50/GGE savings)

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Legislation Being Passed and Proposed at the State Level for NGV Incentives◦ Legislation being filed in TX, PA, NM, WY, etc.◦ Legislation exists in UT, LA, NY, CO, GA, OK (e.g.

75% station credit, 50% of additional vehicle cost)◦ Alabama has the “Green Fleet Life Cycle Costing◦ Alabama has the Green Fleet Life Cycle Costing

Law”

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ANGA = America’s Natural Gas Alliance (gas producers)AGA A i G A i i ( d AGA = American Gas Association (trade association)

CATA = Clean American Transportation CATA = Clean American Transportation Association

NGV America also actively promotes NGVs NGV America also actively promotes NGVs

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Legislative Federal and State Legislative – Federal and State

Vehicle Production Vehicle Production

Marketing and Educationg

Infrastructure - Corridors

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Federal Tax Credits for NGVs expired at the end of 2010 at a time when the market was starting to expandtime when the market was starting to expand.

What our country needs is stability and predictability in federal policies promoting alternative fuel vehicles andfederal policies promoting alternative fuel vehicles and infrastructure so that long-term planning and investment can be efficiently done by the private sector. Extending incentives for one year making incentives retroactive orincentives for one year, making incentives retroactive, or making incentives effective only for a short period of time does not give fleet and station owners the consistency needed to accurately formulate plans or to make fully eeded to accu ate y o u ate p a s o to a e u yinformed purchasing decisions.

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Unlike for other alt fuels, federal incentives are not essential for NGVs:are not essential for NGVs:◦ But the market will grow much faster with federal

government support

If foreign oil is a federal priority, the most effective policy is for Congress to provideeffective policy is for Congress to provide incentives for the purchase and use of NGVs:◦ Bonus: Reduced GHGs and urban pollution p

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Current CNG Stations

1-5 Stations

6-10 Stations

919 total stations as of September 18, 2010

• CNG Stations – 880• 361 Public access stations (~41%)

11-15 Stations

16-25 Stations

26-50 Stations

• 361 Public access stations (~41%)• 519 Private access stations (~59%)

• LNG Stations – 39• 12 Public access stations (~32%)

( ) 51+ Stations• 26 Private access stations (~68%)

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• 1) Texas Triangle, 2) Rockies Corridor, 3) Southeastern Corridor, 4) Eastern Corridor, and 5) I-75 Corridor

• Alliances, legislation, and regional networks are being set up to support these regional effortsefforts

Current Planned 100 miles from CNG Station

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•10% of the US Transportation Market Drives The TriangleDrives The Triangle

•20 million vehicles

•250,000 Class 8 trucks

•26 Congressional Districts

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AlabamaFloridaFloridaGeorgiaKentuckyLouisianaLouisianaMississippiNorth CarolinaSouth CarolinaSouth CarolinaTennesseeVirginia

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American Gas Association (AGA)◦ http://www.aga.org

American Natural Gas Alliance (ANGA)( )◦ http://www.anga.us/

Alternative Fuel Stations and Prices◦ http://www.afdc.energy.gov/afdc/stations/advanced.php◦ http://www.altfuelprices.com/

htt // i /◦ http://www.cngprices.com/◦ http://FuelEconomy.gov

Clean American Transportation Alliance (CATA) Clean Cities Coalition◦ http://www1 eere energy gov/cleancities/◦ http://www1.eere.energy.gov/cleancities/

Clean Vehicle Foundation◦ http://www.cleanvehicle.org/index.shtml

Energy Solutions Center◦ http://www.energysolutionscenter.org/ p // gy g/

Natural Gas Vehicle Institute◦ http://www.ngvi.com/

Natural Gas Vehicles for America ◦ http://www.ngvc.org/index.html

l l d d h l US DOE Alternative Fuels & Advanced Vehicles Data Center◦ http://www.afdc.energy.gov/afdc/

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Please contact Bob Strickland at(205) 326-8449 – office (205) 368-1711 – cell

[email protected]