Natural Gas Vehicle & Alternative Fuels Incentive Grant Programs

1. Natural Gas Vehicle & Alternative Fuels Incentive Grant Programs AFIG Results of Round 1 NGV Preparations for Round 2 NGV P3NGV Workshops June 18-21, 2013

2. PA Natural Gas Grant Programs • Two Grant Programs: • Natural Gas Vehicle Grant – aka Act 13 • Phase 1 awarded, Phase 2 opening this year, Phase 3 opening July 2014 • Alternative Fuels Incentive Grant • Also includes non-natural gas vehicles

3. AFIG & NGV What’s the Same • Eligible costs: • Incremental purchase costs for new alt fuel vehicles • Retrofit costs for existing vehicles • Max. 50% or $25,000 per vehicle, whichever is lower • Minimum of 5 vehicles, all must meet EPA requirements • Eligible applicants may partner to aggregate under one application to support a primary fueling station • Ineligible costs: –Project development costs (engineering/FS/design) –Fueling infrastructure

4. AFIG & NGV What’s Different • Vehicle types – details to follow • Eligible applicants (mostly semantics):

5. NGV Incentives – AFIG • Alternative Fuels Incentive Grant • Open through July 26, 2013 • $10 million • Medium, light-duty, & passenger vehicles • 50% incremental purchase & retrofit • Innovative technology • www.depweb.state.pa.us (select NGV Grant Program)

6. AFIG – Vehicle Purchase & Retrofit Eligible Vehicles • CNG/LNG • Dedicated, bi-fuel, dual-fuel • GVWR under 14,000 lb • Other alternate fuels • LPG, electric, hydrogen, hythane, biofuel, alcohol • Dedicated only • No GVWR restriction

7. AFIG – Innovative Technology • Innovative Technology Projects • Includes R&D, demonstration, pilot projects for next phase alternative transportation fuels or vehicles • Expected to directly result in commercialization • Fueling equipment will be considered • Must be innovative • First deployment in PA

8. NGV Incentives – Act 13 NGV Grant • Authorized by Act 13 of 2012 • Round 1 awarded $6.7 million, 18 projects • Round 2 opens 3Q 2013 (~mid-Aug) • $11 million • Heavy duty vehicles only (>14k lb. GVWR) • 50% incremental purchase & retrofit • Round 3 in 2014 • www.depweb.state.pa.us (select NGV Grant Program)

9. NGV Round 1 Application Summary • Applications: • Total $ requested: • Average $ request: • Avg. GGE/app. AppliedAwarded 49 $12.9 million $280k 67,000 18 $6.7 million $299k 206,000

10. NGV Round 1 Vehicle Summary • Number of NGVs: • Avg. $/vehicle: • Avg. vehicles/app.: • Total fuel usage: • Avg. fuel/vehicle: Applied Awarded 661 $21,000 13 6.3m gge/yr 9,500 gge/yr 311 $21,700 17 3.7m gge/yr 12,000 gge/yr

11. NGV Round 1 Fuel Station Summary • Total new fuel stations: • CNG: • LNG: • Full public access • Limited access • Private access ProposedAwarded 33 26 7 10 19 4 17 14 3 5 7 5

12. Greater Phila. Clean Cities • $492,216 awarded for 35 CNG vehicles • 114,000 GGE • Location: King of Prussia, Montgomery County • Fast fill constructed this spring, up and operating • Public access

13. Rose Tree Media School District • $499,994 awarded for 22 CNG buses • 66,000 GGE • Location: Media, Delaware County • Time fill station to be constructed in 2013 • Private Access

14. PA NGV Grant Program • Round 2 NGVavailable funding • Round 2: $11.1 million • 50% to Local Transportation Organizations (LTO) • Mechanism to allow contracted school bus service to be eligible under the LTO category

15. PA NGV Grant Program • Eligible vehicles: –Dedicated CNG vehicles –Dedicated LNG vehicles –Bi-fuel vehicles • Fueled in part by NG and in part by diesel or gasoline –14,000 lb. or greater GVW • Must be registered in PA

16. PA NGV Grant Program • $300,000 grant award limit for projects using existing fueling infrastructure • $500,000 grant award limit for projects that include construction of new fueling infrastructure • Fueling stations that are associated with a Round 1 grant award will not be considered new stations for Round 2 ($300k award limit applies)

17. NGV Grant Program Round 2 Updates • More detail requested on EPA compliance for vehicle conversions • DEP’s project evaluation criteria to put additional emphasis on public accessibility of fuel stations • A specific date will be set prior to which no purchase or retrofit cost can be incurred – as was done in AFIG

18. NGV Program: Tips for Round 2 • New dedicated vehicles over aftermarket retrofits • Greater petroleum offset & fuel cost savings • More certain EPA compliance • More predictable fuel performance • Avoid overstating projected fuel displacement, particularly dual fuel conversions

19. Reminders for BOTH • Project narrative needs to thoroughly and firmly state project plans • Don’t overlook financial viability analysis • Ensure firm fuel station plans, particularly location and fuel source confirmation • Aggregations are effective

20. NGV Incentives – ACE Grant • Alternative & Clean Energy (DCED) • Rolling application – next one due no later than July 16 (possibly July 9) • CNG & LNG fueling stations included • Max 30% grant • Max 50% grant/loan combination • www.newpa.com (search “ACE”)

21. NGV Incentives – Fuel Tax Credit • $0.50 per gallon for CNG & LNG • Expires end of 2013 • Eligibility • Entities liable for fuel excise tax • Tax exempt entities using on-site fuel station • Credit against tax liability w/ excess as direct payment from IRS

22. Heather A. Cowley484.250.5816 hcowley@pa.govwww.depweb.state.pa.us and click on “Natural Gas Vehicle Program”