ubcapPalmetto State Clean Fuels Coalition • SC Energy Office • SC Budget and Control BoardH SC's Hub for Advanced Vehicle Technologies

The

Weathering the Recession

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1this issueWinter2010

Weathering the Recession

Winter 2010

How the alternative fuel vehicles sector can survive the rest of this Recession and thrive in the Recovery.The Alternative Fuels Vehicle (AFV) market has grown over the last ten years, but it hasn’t been due to market forces, rather governmental and research institutions have buoyed their growth with financial support. Geoffrey Carr, a columnist with The Economist, stated in a November 2009 article titled, “The Coming Alternatives” that “Dr. Chu has been sowing the ground with money in 2009, and in 2010 will expect to start reaping.” So, how does a fledgling AFV market survive the remainder of the Recession and thrive in the coming Recovery when tax credits and grant money from Uncle Sam are gone? In this issue of The Hubcap, we will look at how niche to norm technologies will keep AFVs in the game, and what it will take to make them competitive with conventional vehicles in the Recovery.

Niche to NormNiche markets for AFVs, like transit buses. have kept the market afloat during the research and development stage of commercialization, but as stated above, not without key governmental funding. With that funding, niche market AFVs have proven their reliability and in some areas become normal modes of transportation. Locally, the Central Midlands Regional Transit Authority (CMRTA) has reduced diesel consumption and particulate emissions from aging buses by converting them to operate on newer CNG engines. For more information on what CMRTA is doing to advance the AFV market, see Success Stories on page 2.

The Inter-Green War Which AFV is best? Geoffrey Carr with The Economist has stated that once the Recovery begins the Inter-Green War, a war between the electric and biofuel vehicles, will also break out. To provide insight we invited Jim Poch, President of Plug In Carolina and Tom French, Chair of the South Carolina Biomass Council to weigh in on Mr. Carr’s statement. Check out page three for an expert analysis.

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Success Stories

Big Bucks for Renewable Grants

The Inter Green War?

What We’ve Been Up To

Ozone Action Season 2010

Getting Involved with the PSCFC

The Central Midlands Regional Transit Authority (CMRTA) is April’s Hubcap Success Story of the Month.

Established in 2002, CMRTA is committed toproviding safe, depend-able affordable and accessible public transit service to the heart of the Midlands.

In 2005 CMRTA converted seven of its buses to run on compressed natural gas (CNG). Since then, the buses have used over 250,000 equivalent gallons of fuel. The relative cleanliness of the fuel means that maintenance can be extended from 3,500 miles to over 6,000 miles. On average it costs less than gasoline at the pumps.

CMRTA is also testing cutting edge hydrogen and fuel cell technol-ogy in the Midlands. Part of an Federal Transportation Adminis-tration (FTA) test project, the “Hydrogen Bus” as it has come to be called uses hydrogen fuel cells and lithium titanate batteries to move people around the city. Since the Hydrogen Bus uses elec-tricity and hydrogen the only emission is water vapor, making the Hydrogen Bus one of the cleanest buses in the World.

Do you have an idea for a great Success Story? Send it to Andrew Epting at aepting@energy.sc.gov and you may see it here in the next issue.

In The News

January 8, 2010Sec. Chu Announces $187 Mil-

lion to Improve Vehicle Efficiency for Heavy Duty Trucks and

Passenger VehiclesThe funding includes more than $100 million from the ARRA, and with a private cost share of 50 percent, will support nearly $375 million in total research, development and demonstra-tion projects across the country creat-ing over 500 jobs, primarily research-ers, engineers, and managers who will develop these new technologies.

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February 3, 2010Obama Announces Ruling to

Boost BiofuelsThe EPA has finalized a rule to imple-ment the long-term Renewable Fuels Standard requiring the use of 36 bil-lion gallons of biofuels by 2022 estab-lished by Congress. The U.S. Dept. of Agriculture has proposed a rule on the Biomass Crop Assistance Program that would provide financing to increase bioenergy, as well as a Presidential Memorandum creating an Interagency Task Force on Carbon Capture and Storage for clean coal.

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April 14, 2010U.S. Navy to create “Great Green Fleet”, powering fleet on biofuels

by 2016.The U.S. Department of the Navy has

set a goal to reduce its reliance on fossil fuels from volatile areas of the world,

in part by increasing its use of biofuels. The Navy notes that the costs of trans-

porting fuel has increased exponen-tially, and in extreme cases, it can cost

the Navy up to $400 to deliver a gallon of gasoline to the battlefield. 2

Success StoriesCMRTA, improving air quality one rider at a time

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Projects in S.C. will create jobs and reduce dependence on foreign oil.

Two of the twelve projects funded by the South Carolina Energy Office’s Renewable Grant Program feature electric charging stations and CNG vehicle conversions.

Plug In Carolina was awarded $240,000 to install eight electric vehicle charging stations in Union, 10 in Rock Hill and 10 along the Grand Strand. The cities will be providing the electricity for these charging sta-tions which will be located in municipal parking garages. All plug-in hybrid and electric vehicles can recharge their batteries with these devices including the plug-in Toyota Prius, Nissan Leaf, and the Chevy Volt which are scheduled to be available by the end of 2010.

The charging stations will save vehicle owners more than $363,000 in fuel costs and displace roughly 168,700 gallons of gasoline over the next eight years. This project will also create 12 jobs in South Carolina.

York County Natural Gas Authority (YCNGA) was awarded $49,594 to convert seven Ford F-150 light duty trucks to utilize compressed natural gas. Over the life of the vehicles, YCNGA will save more than $97,000 from reduced fuel costs and displace nearly 12,000 gallons of gasoline over the next six years.

“These projects will provide an excellent demosntration to the community that alternative transportation fuels are available, reliable, and save money. We congratulate Plug In Carolina and York County Natural Gas Authority for their excellent gratn applications and enthusiasim for their efforts” said Erika Meyers, Renewable Energy Manager at the South Carolina Energy Office.

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The Inter Green War?

Geoffrey Carr, a columnist for The Economist stated in a November 2009 article that 2010 will see the opening shots of an inter-green war between the supporters of electric vehicles and those of biofuels. The Hubcap presented this statement to two of South Carolina’s leading experts on the technology to get their two cents. Tom French is the Chair of the South Carolina Biomass Council and Jim Poch is the President of Plug In Carolina.

The Hubcap: How will biofuels thrive in 2010 and beyond?

Tom French: Since biofuels augment current petroleum based fuels, we canpredict with confidence that biofuels will begin to displace a larger fractionof petroleum at the pump. Ethanol is the most widely used alternative fuel, by increasing the current standard blend ratio of approximately 10% up to 20% ethanol. By doing this, we will be succeeding in our mission which is to utilize domestic resources for biofuel production all while reducing the level of GHG’s released into the atmosphere.

The Hubcap: How will EV’s thrive in 2010 and beyond?

Jim Poch: This year, Plug In Carolina has received support from the South Carolina Energy Office that will go to develop recharging infrastructure forplug in hybrid vehicles. Electric vehicles will thrive in 2010 and beyond based on market actions. Car manufacturers are ramping up production on electric vehicles and with the Nissan Leaf and Chevy Volt expected out later this year the infrastructure that is being implemented now will allow consumers to take advantage of this technology.

The Hubcap: So, what do you think about Geoffrey Carr’s statement?

Tom French: I don’t believe that for the foreseeable future there is any real competition between alternative fuels and electric vehicles. Electric vehicles are just now coming on the market. The Leaf has about 50 mile range and will certainly have a great deal of appeal to an urban commuter. I think you may see small biodiesel or ethanol engines developed that can provide auxiliary power for electric vehicles and then you can see ef-ficient transportation that won’t require much if any petroleum fuels

Jim Poch: Research on these technologies is advancing, battery and charging technology is advancing, but lim-ited infrastructure will continue to stifle progress, this may be where biofuels enter. Instead of Geoffrey Carr’s Inter Green War, we should expect to see collaboration between the two alternative energy sources in the automotive industry in 2010. As the United States slowly emerges from the Recession, it will take action from a united AFV community to not only survive in the Recession, but to thrive in the Recov-ery. Instead of an inter green war, we should see a war on oil in 2010 and on into the future.

Biofuels and Electric vehicles are on the fast track to commercialization, but will that track bring them together, or make them collide?

Tom French, SC Biomass Council

Jim Poch, Plug In Carolina

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By The Numbers

54,030 The number of people who were reached in

2009.

127.2Tons of greenhouse

gases Reduced

4,528Number of vehicles

powered by something other than Gasoline

and Diesel

New Members

Annual Survey CompletedWhat We’ve Been Up To

The PSCFC welcomes GSE Propane

PSCFC also welcomes Andrew Epting

Joining the Palmetto State Clean Fuels Coalition in February of 2010, GSE Propane brings a great deal of expertise in fleet conversion to the Coalition. “We help airports covert from gas powered vehicles to clean running propane and provide pre and post emissions testing on equipment” said Shane Mullen, President of GSE Propane. Located in Greenville, South Carolina, GSE Propane also provides comprehensive training for GSE operators on propane conversion technologies.

Each year the Palmetto State Clean Fuels Coaltion surveys all of its stakeholders, state governmental agencies, and companies around the state. This survey, which is required by the Department of Energy, allows the PSCFC to evaluate how many gallons of oil the state is reducing. Alternative fueled vehicles, idling reduction programs, and highly efficient vehicles are just a few metrics we look for in completing this survey.

To highlight some of the results, the PSCFC was able to reach over 54,000 people in 2009, the third highest in our history. This year was the first time that the survey began calculating the total amount of greenhouse gases that were reduced as a result of the activities listed in the survey. Survey respondents reported that they collectively operate roughly 4,500 alternative fuel vehicles in South Carolina, with the State of South Carolina the largest single user of these vehicles.

In February, Andrew came onboard at the South Carolina Energy Office as Grants Coordinator for the Palmetto State Clean Fuels Coalition. He will manage a variety of Clean Cities duties and will provide assistance to existing and new alternative fuel programs. Andrew looks forward to working with the Clean Cities Team and will be attending the Clean Cities Eastern States Peer Exchange meeting in June. Andrew comes to us after three years at the South Carolina Hydrogen and Fuel Cell Alliance.

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Ozone Action Season 2010Ground-level ozone is a type of air pollution that forms on hot sunny days when nitrogen oxides and volatile organic compounds (VOCs) react. Nitrogen oxides and VOCs come from cars, trucks, smokestacks, and natural sources like pine trees. In South Carolina, pollution from motor vehicles accounts for a majority of air pollution that contributes to ground level ozone formation.

Ground-level ozone is different from the Ozone Layer that is 10-35 miles above the earth’s surface. The Ozone Layer protects us from the sun’s harmfulUV radiation, but at ground-level, ozone can be harmful to our health and the environment. Simply put, “Ozone is good up high, but bad nearby.”

Everyone has some sensitivity to ground-level ozone. However, children and people with pre-existing lung disease such as chronic bronchitis, emphysema, and asthma are especially sensitive. Exposure to ozone can cause shortness of breath, wheezing, and coughing. Reducing ground-level ozone can lower health risks for the people in South Carolina

DHEC provides ozone forecasts for six areas of South Carolina each year from April 1 through September 30. This service is provided to inform the public about the effects of ground-level ozone and help the public make healthy decisions about outdoor activities. The forecasts provide important air quality information and alert the public of ground-level ozone action days. An “ozone action day” is forecasted when conditions may be present that could generate high enough amounts of ground-level ozone to affect everyone, even healthy, active people. On these days, everyone should limit their outdoor activities, and people with respiratory conditions such as asthma might want to stay indoors.

To sign up for the forecast or for more information on ground-level ozone, please visit www.enviroflash.info In addition to knowing the forecast, you can become part of the solution by doing your part to prevent high ozone levels. Did you know that emissions from cars and trucks account for roughly 30% of South Carolina’s air pol lution? The simple solution is to drive less on warm, sunny days when weather conditions favor ozone formation. With the warm weather we’re already having, now’s a great time to start reducing your work-related vehicle use through commuting alternatives such as flexible scheduling, telecommuting, mass transit, carpooling and walking. Take a Break from the Exhaust is a Web-based DHEC program that can help you identify ways to reduce vehicle miles traveled and track how much air pollution you avoid by driving less. You’ll also earn points for your pollu-tion-reducing activities and get to see how your activities compare with your co-workers’.

To check it out, visit www.scdhec.gov/takeabreak and be a part of the solution to air pollution!

Emissions from cars and trucks account for roughly 30% of

South Carolina’s air pollution

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About the Palmetto State Clean Fuels Coalition

The Palmetto State Clean Fuels Coalition (PSCFC) is part of the U.S. DOE Clean Cities program and is one of approximately 90 designated coalitions in the United States. The Department of Energy approved the application for PSCFC's designation in 2004, recognizing the commitment of our stakeholders to building an alternative fuels market in South Carolina. We have just completed

our 5 year redesignation process and look forward to another great five years.

The PSCFC is dedicated to promoting alternative fuels, fuel blends, advanced vehicles, hybrid vehicles, fuel economy, and idle reduction. As a Clean Cities organization, the PSCFC strives to advance the nation's economic, environmental, and energy security by supporting local decisions to adopt practices that contribute to the reduction of petroleum consumption.

Contact Us

Andrew EptingClean Cities Grants Coordinatoraepting@energy.sc.gov

Erika H. MyersClean Cities Coordinatoremyers@energy.sc.gov

South Carolina Energy Office1200 Senate Street408 Wade Hampton BuildingColumbia, SC 29201(803) 737-8030 (office)(803) 737-9846 (fax)

Palmetto State Clean Fuels Coalition www.palmettocleanfuels.org

SC Energy Office www.energy.sc.gov US Department of Energy www.energy.gov/recovery

Upcoming Events

May 5Greening the Airports SeminarColumbia, SCto register follow the link below.http://tinyurl.com/y6h84bw

June 28- July 1Clean Cities Regional MeetingPittsburgh, PA

August 3-5SE Bioenergy ConferenceTifton, GAwww.sebioenergy.org

August 24-25TAPPI BioPro ExpoAtlanta, GAwww.bioexpo.com

Getting Involved with our OrganizationBecoming a stakeholder in the Palmetto State Clean Fuels Coalition is

very simple. Membership in this organization is free and will include email updates on grant opportunities, educational outreach, and promotion of your organization on our website which lists stakeholders (www.palmettocleanfuels.org/). Stakeholders are asked to complete a copy of our Memorandum of Understanding which can be found on our website. To join our listserve, please email Andrew Epting at aepting@energy.sc.gov with your contact information.

Fueling ChangeWe're On the Road to Cleaner Air