Rose Tree Media School District – Public Forum Compressed Natural Gas Vehicles

1. Rose Tree Media School District – Public ForumCompressed Natural Gas Vehicles

2. Presenters & Panelist • Phil Solomon – Johnson Controls Inc. • Dave Brunner – Johnson Controls, Inc. • Graham Barker – Air & Gas Technologies • Mike Lang – Provident Energy Inc. • John Young – Provident Energy Inc. • Pat Patterson – PA Department of Environmental Protection • Tony Bandiero – Greater Philadelphia Clean Cities Coalition • Special Thanks: CNG Bus supplied by Lower Merion School District Johnson Controls

3. The Case for Compressed Natural Gas Vehicles • Lowers the districts overall transportation budget • Diesel fuel is significantly more expensive than CNG on an energy unit basis (BTU) • 2013 budget for Diesel fuel is $520k the equivalent cost for CNG is $180k • Grant money available from PA DEP • Significant reduction in the district’s environmental footprint, cleaner air and quieter neighborhoods • Natural gas is America’s fuel: About 98% of all natural gas consumed in the US comes from North America. • The abundance of shale gas available in PA will keep natural gas prices low for the foreseeable future. Johnson Controls

4. Johnson Controls

5. Johnson Controls

6. Motor Vehicle Fuel Comparison *Clean Cities Alternative Fuel Report April 2013 http://www.afdc.energy.gov

7. High Level Project Overview - Construction • Construction of a ‘fast fill’ CNG fueling station • Addition of a CNG dispensing station at the transportation building • Modify the maintenance building to allow for heavy maintenance work of CNG bus fleet • The local utility (PECO) must install a sufficient natural gas main to the fueling station • Training: Both the maintenance staff and the bus drivers must be trained to manage a CNG powered bus fleet Johnson Controls

8. The CNG Bus Transition Plan • District currently owns 74 transportation buses • The fleet has been slowly increasing in median age • Over the next 5 years the district will have to replace 35 buses that will be at the end of their useful life (roughly 15 years old) • Construction year: Build infrastructure & Train Maintenance and Drivers • In year 1: Retire 15 diesel buses & purchase 15 new CNG buses • In year 1: Replace the engines of 8maintenance prone buses • In year 5: Retire 10 more diesel buses at the end of their life and replace them with CNG buses Johnson Controls

9. Johnson Controls

10. How Does Natural Gas Compare to Other Fuels? Composition & Energy Content • Diesel – C14H30 137,000 BTUs/gallon • Gasoline – C8H18 124,600 BTUs/gallon • Propane – C3H8 91,000 BTUs/gallon • Methane – CH4 124,600 BTUs/GGE • Methane – CH4 137,000 BTUs/DGE

11. How Does Natural Gas Compare to Other Fuels? Octane, Ignition Temp, Vapor Density OctaneIgnition TempVapor Density* • Diesel – C14H30 8 – 15 494o F > 1.0 • Gasoline – C8H18 86 – 94 810o F 3.50 • Propane – C3H8 104 950o F 1.53 • Methane – CH4 130 1200o F 0.68 * NOTE: Vapor Density of Air = 1.0;

12. Johnson Controls

13. Johnson Controls

14. Crash Test 1 – CNG Bus Left Side ImpactCourtesy of California Highway Patrol Johnson Controls

15. Crash Test 2 – CNG Bus Rear ImpactCourtesy of California Highway Patrol Johnson Controls

16. Crash Test 3 – CNG Bus Right Side ImpactCourtesy of California Highway Patrol Johnson Controls

17. Safety Statistics • Children currently are exposed to high levels of diesel emissions riding school buses. • CNG has a significant reduction in NOx and fine particulate pollution • CNG has much fewer asthma causing properties per a CDC study (Brunekreef et al. 1997) • CNG Current Bus use: • Twelve Million NGV’s in use world wide • 1 in 5 transit buses is CNG • Lower Merion School District has traveled millions of miles without incident • A survey of 8,331 NGV users displayed: • NGV injury rate was 37% lower • 0 fatalities compared to 1.28 per 100 million miles for gas/diesel fleets • CNG Tank safety • Rigorously tested to meet extreme standards much greater than a diesel tank equivalent • Bonfire test • Equivalent 30 caliber gun shot test Johnson Controls

18. Societal & Environmental Benefits • Replacing a typical older in-use vehicle with a new NGV provides the following reductions in exhaust emissions of • Carbon monoxide (CO) by 70%–90% • Non-methane organic gas (NMOG) by 50%–75% • Nitrogen oxides (NOx) by 75%–95% • Carbon dioxide (CO2) by 20%–30% • Source: NGV America Johnson Controls

19. Financial Benefits • Initial 23 bus transition plan • Infrastructure Construction Costs ($2,080,828) • CNG Bus Costs: ($2,662,663) • PA DEP NGV Grant $499,994 • Capital reserved for new buses in 2013 $200,000 • Total Construction & CNG Bus Cost: ($4,043,467) • Total Financed Construction & CNG Buses w borrowing cost: ($5,484,036) • Guaranteed Project Savings: $6,522,531 • Total Measurement & Verification ($5,152) • Net Benefit: $1,033,344 • Converting less than half the existing fleet pays for all costs associated with the CNG transition • Every additional diesel bus retired and replaced with CNG nets the district an additional $44,000 in savings over the life of the bus (present value) • Potential Annual ‘Tax’ Rebate (avoided Diesel Tax) Johnson Controls

20. Total Benefits • Net savings to the local community & taxpayers • Initial conversion of 23 buses pays for entire project • Positive health benefits from reduced pollution • $499,994 PA DEP grant awarded for project • Bus fleet is upgraded earlier using this method • Significant additional cost reduction occurs as district continues to transition all vehicles to CNG • Additional rebates could improve the net savings • Additional tax rebates could improve net savings • Significant Environmental Benefit • Quieter & cleaner buses in the community • Preempts costly new 2014 EPA compliance regulations • Reduces reliance on foreign oil & stabilizes fuel budget Johnson Controls

21. Open Discussion • Please sign in to be recognized • The facilitator will call your name on a first signed in basis • Panel will address each question Questions - Discussion Johnson Controls

22. The Case for Compressed Natural Gas Vehicles • Natural Gas prices respond to supply and demand conditions in the U.S.; Oil (and Diesel) prices are very reactive to global supply/demand. • Oil prices face much more volatility due to geopolitical events and see upward pressures due to demand increases from restructuring economies. • The abundance of shale gas available in PA, coupled with more advanced and efficient drilling techniques being utilized in both the shale and Gulf regions, is expected to keep natural gas prices low for decades. Johnson Controls