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1 FUELING GOOD STRATEGIES FOR ALTERNATIVE FUELS Ben Moore, AICP, LEED AP O+M, GPCP 904-256-2348 [email protected] Tom McVey PE 904-256-2144 [email protected]

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Page 1: Draft apwa alt_fuels_presentation

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FUELINGGOODSTRATEGIES FOR ALTERNATIVE FUELS

Ben Moore, AICP, LEED AP O+M, GPCP

904-256-2348

[email protected]

Tom McVey PE

904-256-2144

[email protected]

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SUMMARY

» While gasoline & diesel will dominate supply for the near future, opportunities for alternative fuels are growing.

» Like energy efficiency & renewables in buildings, alternatives can reduce risk & enhance the bottom line.

» Alternatives are diverse, with distinct applications for maritime, rail, logistics, transit, municipalities / government, airports, service fleets, private vehicles.

» A portfolio of planning, design & implementation strategies can overcome market barriers.

» Multi-discipline techniques (law, economics, engineering) & innovative funding (public & private) are essential to achieve results.

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OUTLINE

» Why?

– From Dependence to Opportunity

– The Bottom Line

» Alt. Fuels 101

– Energy Content

– Price

– Environment

– Efficiency

– Range Anxiety

– Infrastructure

– Regulation

– Incentives

» Alt. Fuels Ecosystem

– Finding the Alt. Fuel Niche

» Case Studies:

1. Master Planning: North Florida TPO and the Clean Fuels Coalition

2. Partnerships: Developing a Regional EV Charging Network

3. Innovation: Enhancing Mobility through Public Private Partnerships

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WHY ALTERNATIVE FUELS?

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FROM DEPENDENCE TO OPPORTUNITY

Gasoline

71%

Diesel

23%

Ethanol

Additives

5%Alt.

Fuels

1%

Biodiesel (64%)

CNG (15%)

E85 (10%)

Propane (9%)

LNG (2%)

Electricity (1%)

Hydrogen (0%)

Source: EIA, 2012

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$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.002011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

THE BOTTOM LINE

Natural Gas (CNG)

Diesel

$Source: EIA, 2014

Lower Operating Costs

Risk Management

Economic Development

Improved Public Health

Less Toxicity

Reduced Emissions

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DIVERSITY

» Sources

» Energy content

» Price history & forecast

» Air quality

» Fuel Economy

» Range

» Availability

» Infrastructure

» Regulation

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BANG! – ENERGY CONTENT

Fuel Btu/Unit Gallon-equivalent

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BUCK$ - PRICE TRENDS

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

4/1

0/0

0

6/4

/01

2/1

1/0

2

7/2

2/0

2

2/1

0/0

3

3/8

/04

11/1

5/0

4

9/1

/05

5/2

4/0

6

2/2

1/0

7

10/2

/07

4/1

/08

10/1

/08

4/1

5/0

9

10/2

6/0

9

4/1

2/1

0

10/1

4/1

0

5/1

5/1

1

10/1

4/1

1

3/3

0/1

2

10/1

2/1

2

4/1

2/1

3

10/4

/13

4/1

/14

10/1

/14

4/1

/15

$ /

GG

E

Gasoline Diesel B20 Electricity* E85 CNG Propane

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Estimated Air Emissions of Alternative Fuels Relative to Conventional Fuels

Fuel/Technology NOx VOC CO PM10 GHG

Biodiesel +3% -20% -10% -8% -10 – -13%

Electricity (EV) -96% -96% -96% -11% -48 – -72%

Ethanol +8% +2% 0% +1 -15 – -28%

Hydrogen -96% -96% -96% -1 – -11% -26 – -91%

Natural Gas (CNG) -19 – 0% -72% * * -11 – -30%

Natural Gas (LNG) -5% – +4% -72% * -1 – -2% -11 – -16%

Propane +3 – +26% +600% 0% 0% -18 – -20%

*Data not available

AIR QUALITY & GHG EMISSIONS

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FUEL ECONOMY

Plug-In Hybrid Gasoline / Electric (Electric Mode)

Electric Vehicle

Hydrogen, Fuel Cell

Plug-In Hybrid Gasoline / Electric (Gas Mode)

Hybrid Gasoline / Electric

Hydrogen, ICE

Ultra-low Sulfur Diesel

B20

E85 / Flex-Fuel

Gasoline, ICE

CNG

Propane

80.4

80.4

44.7

31.3

30.1

29.1

28.8

28.8

23.0

22.3

22.3

22.3

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Range Baseline MPGGE

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RELATIVE DRIVING RANGE OF LIGHT DUTY VEHICLES

RANGE ANXIETY?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Electricity

CNG

Hydrogen

E85

Propane

B20

Conventional

Relative Driving Range of Light-Duty Vehicles

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Fuel / Technology Cost

Biodiesel -

Electricity Low

Ethanol -

Hydrogen Very High

CNG Time Fill Moderate

CNG Fast Fill High

LNG High

Propane Moderate

INFRASTRUCTURE

Source: RS&H

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REGULATION

Code / Standard

B20

Ele

ctri

city

E85

Hyd

rog

en

CN

G

LN

G

Pro

pan

e

American Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code ● ● ● ● ●National Fire Protection Association (NFPA) 2, Hydrogen Technologies Code ●NFPA 30, Flammable and Combustible Liquids Code ● ●NFPA 30A Code for Motor Fuel Dispensing Facilities and Repair Garages ● ● ●NFPA 52, Vehicular Gaseous Fuel Systems Code ● ● ●NFPA 58, Liquefied Petroleum Gas Code ●NFPA 59A, Standard for the Production, Storage Handling of Liquefied Natural Gas ●NFPA 68 & 69, Standards on Explosion Prevention and Protection ● ●NFPA 70, National Electrical Code (NEC) Article 625: EV Charging System Equipment ●

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Incentive Description

Decal Fee for Florida

Registered VehiclesFee eliminated for alternative fuel vehicles.

Biofuels Investment Tax

Credit

Available for 75% of all capital, operation, maintenance and research and development

costs incurred with investment in the production, storage and distribution of biodiesel

(blends of B10 or above), ethanol (blends of E10 or above), or other renewable fuel, up to

$1 million annually per income taxpayer. The annual budget for this program is

$10,000,000.

Biodiesel Tax

ExemptionBiodiesel manufactured in a volume less than 1,000 gallons by a public or private

secondary school for its own use is exempt from the diesel fuel excise tax.

Natural Gas and

Propane Vehicle

Rebates

As of January 1, 2014, a rebate of 50% of the incremental cost of an OEM natural gas or

propane fleet vehicle up to $25,000 and $250,000 per applicant, per year, is available. For

2014, $6,000,000 has been allocated to the program, of which 40% is reserved for public

fleets. The remainder is earmarked for private fleets. Funding is subject to annual

reauthorization by the Florida legislature.

Natural Gas and

Propane Tax Holiday

CNG, LNG and Propane will be subject to an excise tax at a rate of $0.04 per GGE, a $0.01

ninth-cent fuel tax, a $0.01 local option fuel tax, and an additional variable component to

be determined by the Florida Department of Revenue each calendar year for the following

12-month period. However, these fuels are exempt from sales and excise taxes until 2019.

INCENTIVES

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Other

Petroleum

Diesel

Gasoline

Freight

Vehicles

Heavy Duty

Vehicles

Specialty

Vehicles

Mid-duty

Vehicles

Light Duty

Vehicles

LNG

CNG

CNG

Electric

Biodiesel

Biodiesel

Propane

Ethanol

Biodiesel

Propane EthanolBiodiesel

THE ALT FUELS ECOSYSTEM

Fuel Alt. Fuel “Niche”

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CASE: ALT. FUELS MASTER PLAN

» Detail: Comprehensive plan for regional development

» Fuel: Cross-cutting

» Niche: Whole Ecosystem

» Funding: Federal (CMAQ)

» Techniques: Survey, Public Involvement, Data Inventory and Forecast, Project Development

» Metric: 40% growth over 3 years

» Highlight: Regional strategy for multi-modal logistics (maritime, rail, trucking) fueled by CNG

Source: Cheniere

7

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CASE: CHARGEWELL

» Detail: EV charging incentive program

» Fuel: Electricity

» Niche: Light duty passenger vehicles

» Funding: MPO / Utility Partnership

» Techniques: Public Involvement, GIS, Engineering, Program Development

» Metric: 27 stations by early 2016

» Highlight: Brand & partnership model for regional expansion

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PARTNERSHIPS

» Programming:

– North Florida Transportation Planning Organization

» Planning:

– RS&H

» Administration:

– JEA

» Installation:

– NovaCharge

Source: RS&H

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DESIGN

» Geospatial analysis of “range anxiety” & “activity centers”

» Competitive application process

» Incentive: Level 2 EVSE, 2 yrnetworking & up to $7500 towards installation

» Rebate: $500 - $1000 for EVs

» Events: Drive Electric Rallies, Workplace Charging Lunch & Learns

Source: RS&H

Source: NORTH FLORIDA TPO

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RESULTS

» 27 stations installed

» 225% increase in public, non-dealership affiliated charge points

» Near-full geographic coverage of Duval County

» 46% increase in EV registration over 2014

» Next: Clay, Nassau & St. Johns Counties

Source: NORTH FLORIDA TPO

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CASE: CNG BUS FLEET CONVERSION

» Detail: 100 CNG buses & construction of private and public fueling stations

» Fuel: CNG

» Niche: Transit buses

» Funding: Public-Private Partnership

» Techniques: Engineering, Economics, Law, CEI, Cx

» Metric: 40 % displacement (1 million gallons) in year 5

» Highlight: P3 investment + public match = public fueling station & royalty for transit authority

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TEAM

» Owner (Risk, Legal, Safety, Engineering/Proj. Mgmt., Finance, Operations, Outreach)

» Technical (RS&H, Porter Mgmt.)

» Financial (Clary)

» Legal (Broad & Cassel)

Source: JTA

9

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PRE-PLANNING

» Due Diligence

– Regional Alternative Fuels Planning (Clean Cities)

– Business Case for CNG

» Stakeholder Engagement

– Market / Regulatory Feedback

– Delivery Methods

– Leverage Funding (TPO/MPO FDOT TRIP funding)

Source: RS&H

Source: RS&H

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PLANNING

» Owner’s Project Requirements

– CNG Compression Infrastructure

– Modified Fueling Infrastructure

– Modified Maintenance Infrastructure

– Publicly-Accessible Fueling Infrastructure

» Parameters

– Schedule

– Sequencing

Source: RS&H

Source: RS&H

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DELIVERY METHOD

» Why P3?

– Speed to market

– Industry innovation & expertise

– Risk management

» Value for Money Analysis

– Public Sector Comparator

Source: RS&H

Source: RS&H

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Procurement

» RFP Development

– Performance Specifications

– General Conditions

– Evaluation Criteria (Two-Step)

» Contract (Two-Part)

– Design Build

– Lease Concession

Source: JTA

Source: JTA

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IMPLEMENTATION

» Design & Construction

» Construction Management / Design Review (EismanRusso)

» Operations & Maintenance

» Fuel Marketing

Source: JTA

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RESULTS

» $8,000,000 in public and private investment

» Delivered on-time for roll-out of new BRT line

» 40% diesel fuel displacement in 5 years

» Air pollution reduction (NOx, VOCs, Ozone)

» 11 – 30% GHG reduction

» Potential cost savings

Source: RS&H

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Ben Moore, AICP, LEED AP O+M, GPCPEnergy & Sustainability Planner

904-256-2348

[email protected]

Tom McVey, PESenior Project Manager

904-256-2411

[email protected]