Objectives Explain how to implement green fleets Learn about incentives for converting to natural gas fleets

2. Objectives • Explain how to implement green fleets • Learn about incentives for converting to natural gas fleets • Learn about the availability and cost of natural gas • Identify the advantages of using natural gas • Understand how to safely handle natural gas

3. Greening of Fleets • Why use green fleets? • Reduce operating costs • Reduce greenhouse gas emissions • Improve corporate image

4. How to Implement Natural Gas • Get buy-in • Create long-term objectives • Avoid setting reduction goals in absolute numbers • Anticipate obstacles • Move slowly • Improve vehicle use • Track and report progress

5. Natural Gas Fleets • Natural gas = hydrocarbon fuel; mostly methane • Natural gas is a fossil fuel • Natural gas has a higher flammability than conventional gasoline • Natural gas has a lower volumetric energy density compared to liquid fuels

6. How is Natural Gas Formed? • Fossil fuel – nonrenewable • Decay of organic matter over time • Coal, oil, stand-alone wells • Biogas – renewable • Landfills • Agriculture • Stored as CNG or LNG

7. CNG • Natural gas is compressed and stored as a gas • Stable method of containment • 3000-3600 psi Figure 1 (left): Factory available Honda Civic CNG passenger car. Source: NAFTC. Figure 2 (right): Corresponding CNG trunk-mounted tank. Source: NAFTC.

8. LNG • Natural gas is cooled below -260°F • Stored at lower pressures • If released, LNG will quickly evaporate • Considered a cryogenic liquid • Storage tanks are called dewars Figure 3: Cutaway of LNG tank showing dual walls and insulation. Source: NAFTC.

9. Incentives for Using Natural Gas in Fleets • Incentives • Partnership initiatives and pooled resources • Financial subsidiaries • Informational tools • Initial cost vs. federal and state incentives • American Recovery and Reinvestment Act (ARRA) • Clean Cities Program

10. Tax Incentives • Tax incentives for natural gas fuel, vehicles, and infrastructure have been provided through federal law • In addition to federal incentives, 25 states currently offer to help in the development of the market

11. Federal Grant Funding • Federal government = largest grant provider • U.S. Department of Energy (DOE) • U.S. Department of Transportation (DOT) • Environmental Protection Agency (EPA) • U.S. Department of Agriculture (USDA)

12. State Grant Funding • State Energy Office (SEO) • National Association of State Energy Officials directory • Alternative Fuels Data Center map • To find state-specific information, visit www.afdc.energy.gov/afdc/laws/state

13. Incentives for Natural Gas Production • Recently doubled estimates of U.S. natural gas reserves • Expanded drilling options available • Cleaner burning domestically produced gas • State incentives for increased production • Local biomass projects • Use of renewable biogas over natural gas

14. Natural Gas Availability and Cost • Currently, there are 300,000 miles of natural gas pipelines in U.S. • Most public fueling stations are CNG because fleets using LNG have dedicated infrastructure • Consumption has increased 145% nationwide since 2005

15. Figure 4: Natural Gas fueling stations by state. AFDC.

16. Research shows the cost of diesel fuel is projected to increase at a linear rate of 5.6% per year • Increase in natural gas = 1.6% per year Figure 5: EIA Fuel Price Projections. Source: EIA.

17. Figure 6: Cost comparison - diesel, gasoline, & compressed natural gas. Source: AFDC.

18. Natural gas price depends upon: • Cost of production • Demand for natural gas • 87% domestically produced

19. Natural Gas Advantages • Reduced greenhouse gas and particulate matter emissions • Reduced long term operating costs • Domestically produced • Higher compression ratios

20. Things to Consider • Limited vehicle availability and initial cost • Shorter driving range • Limited public fueling stations

21. Natural Gas Performance and Safety • Performance • Conversions have similar performance • May sacrifice some power • Dedicated and purposed built may have better performance • Can utilize higher compression ratio for increased engine efficiency

22. Natural Gas Performance Summary Similar vehicle performance High octane rating Cleaner exhaust emissions Fuel tank size can be large Limited vehicle fueling stations

23. Safety • NGVs have excellent safety record: • Integrity of the NGV’s fuel storage and delivery system • Properties of the fuel itself • Natural gas is highly flammable • Excellent for combustion • Should be handled with same care given to other combustible fuels

24. Safety • Natural gas cylinders are much thicker and stronger than gasoline or diesel tanks • The National Fire Protection Agency (NFPA) and U.S. DOT identify hazards with diamond placards

25. Tanks • CNG • Produced to meet reliability and performance standards • 3 year or 36,000 mile tank inspections • LNG • Visual inspection for corrosion • Label Figure 7: Example of LNG tank label. Source: NAFTC.

26. NFPA Placards and Specifications • Four colored diamonds within outer diamond • Inner diamonds dictate health, fire, reactivity, and other hazard information • Different diamonds for different substances Figure 8 (left): NFPA hazard placard for CNG. Source: NFPA. Figure 9 (right): NFPA 704 hazard placard for LNG. Source: NFPA.

27. U.S. DOT Placards and Specifications • Help identify what fuel is being transported • Different placards for different forms of fuel • Proper officials should be contacted to ensure correct placards are displayed Figure 10 (left): CNG transport placard for UN 1971. Source: U.S. DOT. Figure 11: LNG transport placard UN 1972. Source: U.S. DOT.

28. Natural Gas Safety Summary NGVs must meet stringent safety codes Safe and durable storage tanks Tank inspections Exposure causes minimal injury

29. Test Your Knowledge • True or False: The price of natural gas based on a gasoline gallon equivalent is typically lower than gasoline. • What are the two forms of natural gas storage? • True or False: Fueling stations for natural gas are located in nearly all locations of conventional fuel stations. • Natural gas engines can utilize higher __________ due to its higher ___________ rating. • True or False: Natural gas vehicles require periodic fuel tank inspections.