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CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc.

CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

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Page 1: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

CNG Collection Innovations

May 22, 2015

Steven Saltzgiver

Vice President, Fleet Management

Republic Services, Inc.

Page 2: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Protecting Our Blue PlanetȠ

We believe in the preservation of a Blue Planet... a cleaner, safer and healthier

world where people thrive – not just for today, but generations to come.

We are guardians of our environment and have a responsibility to regenerate our

planet with the materials we are entrusted to handle every day by driving

increased recycling, generating renewable energy and

helping our customers be more resourceful.

We must lead by example, working diligently to improve

our relationship with the environment and society

through decreased vehicle emissions, innovative

landfill technologies, use of renewable energy,

community engagement and employee growth

opportunities.

This is not a fleeting cause. It is the foundation

of our future, and the very heart of who we are as

we work every day to protect our Blue Planet.

Page 3: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

About Us: Republic Services at a Glance

YE 2014

14 Million Customers

39 States & Puerto Rico

31,000 Employees,

including 15,000 drivers

340 Collection Operations

198 Transfer Stations

66 Recycling Centers

29,000 Total Vehicles,

including 16,000 Collection Vehicles

189 Active Solid Waste Landfills

2,200 Natural Gas Trucks

36 Natural Gas Fueling Stations

73 Landfill Gas-to-Energy Projects

Two Landfill Solar Energy Projects

100 million tons

Waste Collected Annually

$8 billion annual revenue,

$20 billion total assets, NYSE RSG

Page 4: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

CNG Collection Vehicles

A Republic Services Perspective

• Why CNG?• Where Does CNG Make Sense?

• What is the Impact?CNG Fleet Photos

Page 5: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

1. It’s the right thing to do – and it’s environmentally

responsible

2. It’s cleaner – emissions are lower and increasingly alternative

fuels are mandated

3. It’s local – natural gas is abundantly available from North

American sources

4. It’s cheaper – current natural gas costs are lower than diesel

5. It’s quieter – customers like less noise

Why CNG?

Page 6: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Republic’s CNG Experience

Region 2008 2009 2010 2011 2012 2013 2014 2015

East 0 0 0 1 153 331 469 TBD

Central 0 0 0 0 133 211 253 TBD

West 126 229 482 669 987 1,215 1,535 TBD

Total 126 229 523 712 1,273 1,757 2,257 2,757

Cumulative NGV Counts by Region

We have successfully operated Natural Gas Vehicles since 1995

Page 7: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Site Profile: Baton Rouge

10

Station Design Assumptions:

Fueling Requirements:

• 113 trucks consuming 35 DGE/day• Total 3,955 DGE/day

Trucks (Phase 1) 38

Trucks (Full Build) 113

Posts (Phase 1) 19 Twin

Hoses 38

SCFM Required (Phase I) 296

# of Compressors 2

SCFM Compressor 430

Total Station SCFM 860

Shop Mod Requirements:

• Install continuous methanegas detection control

system

• Install non-sparkingexplosion proof exhaust

fans

• Install explosion proofmotorized roll up garage

doors

• Install safety signage• Remove open flame heaters• Install CNGV facilitycompliant infrared heaters

Page 8: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

A progressive regulatory

environment

A large fleet

Fleet returns to base

Where Does CNG Make Sense?

A suitable site

(e.g. access to gas pipeline,

adequate space, ease of

permitting, etc.)

Fleet composition

(link to fleet life cycle –

replacement and redeployment)

Customer service

Page 9: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Natural Gas vs. Diesel (Forward Curves)

Despite updated EIA projections, the current spread between

diesel and natural gas continues to make economic sense.

Source: Energy Information Administration (“EIA”), 20 YR Annual

Price Projection April 2015 Update

$/DGE

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

'14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24

CNG $/DGE *EIA STEO Diesel *EIA STEO Spread *EIA STEO

6

Page 10: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Fleet Size

Conversion Rate 25 50 75 100

20/20/20/20/20 < 5.0%

25/25/25/25

33/33/33

50/25/25

100% Year One > 20.0%

Candidate Sites 72 32 18 11

Candidate Trucks 2,500 1,923 1,581 1,329

Site Development Opportunity Matrix

Our primary focus continues to be sites with more than 50 trucks.

There are still significant numbers of site/truck candidates for CNG.

Sweet Spot

Site Development Opportunities

Page 11: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

CNG Challenges

CNG conversion is not a one size fits all solution. Depending on site

characteristics, CNG may not be practical.

Engine size, payload

Location, Location, Location

• Site feasibility

• Access to adequate gas and power

• Public infrastructure

Shop Improvements

Permitting & Zoning

Page 12: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Environmental – it’s good for

our communities

• 85% NOx reduction (less smog)1

• 23% Greenhouse Gas reduction1

Source: 1 South Coast Air Quality Management District 2007 Air Quality Management Summit Panel

What is the Impact?

Operational – drivers love it.

It’s quiet and it does not smell

Financial – potential to

save money

Page 13: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc
Page 14: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc
Page 15: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

WhatistheImpact?

Page 16: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc
Page 17: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

CNG Collection Innovations

Page 18: CNG Collection Innovations - Louisiana Clean Fuels · CNG Collection Innovations May 22, 2015 Steven Saltzgiver Vice President, Fleet Management Republic Services, Inc

Thank You.