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TRANSPORTATION ISSUES, POLICIES AND R&D N G - C ATURAL AS POWERED ARS T AND RUCKS O I PTIONS AND SSUES HAYLEY ACKERMAN EDITOR New York Copyright © 2015 by Nova Science Publishers, Inc. All rights reserved. No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher. For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book. The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material. Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works. Independent verification should be sought for any data, advice or recommendations contained in this book. In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication. This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein. It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services. If legal or any other expert assistance is required, the services of a competent person should be sought. FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS. Additional color graphics may be available in the e-book version of this book. Library of Congress Cataloging-in-Publication Data ISBN: (cid:28)(cid:26)(cid:27)(cid:16)(cid:20)(cid:16)(cid:25)(cid:22)(cid:23)(cid:25)(cid:22)(cid:16)(cid:28)(cid:26)(cid:21)(cid:16)(cid:28) (eBook) Published by Nova Science Publishers, Inc. † New York CONTENTS Preface vii Chapter 1 Natural Gas for Cars and Trucks: Options and Challenges 1 Bill Canis, Robert Pirog and Brent D. Yacobucci Chapter 2 Costs Associated With Compressed Natural Gas Vehicle Fueling Infrastructure 31 Margaret Smith and John Gonzales Chapter 3 Business Case for Compressed Natural Gas in Municipal Fleets 53 Caley Johnson Index 89 PREFACE This book is designed to help fleets understand the cost factors associated with fueling infrastructure for compressed natural gas (CNG) vehicles. It provides estimated cost ranges for various sizes and types of CNG fueling stations and an overview of factors that contribute to the total cost of an installed station; and describes how the National Renewable Energy Laboratory (NREL) used the VICE model to establish guidance for fleets making decisions about using CNG. Chapter 1 – The increase in domestic supplies of natural gas has raised new interest in expanding its use in the transportation sector. This report considers issues related to wider use of natural gas as a fuel in passenger cars and commercial vehicles. The attractiveness of natural gas as a vehicle fuel is premised in large part on its low price (on an energy-equivalent basis) compared to gasoline and diesel fuel. When prices for gasoline and diesel are relatively low or natural gas prices are relatively high, natural-gas-based fuels lose much of their price advantage. While natural gas has other benefits—such as producing lower emissions than gasoline and diesel and protecting users of transportation fuels from the volatility of the international oil market—it is largely the cost advantage, if any, that will determine the future attractiveness of natural gas vehicles. There are a number of technology pathways that could lead to greater use of natural gas in transportation. Some require pressurized systems to use natural gas in a gaseous state, and others convert natural gas to a liquid. Two of the most widely discussed options use compressed natural gas (CNG) and liquefied natural gas (LNG). Other technological approaches use liquefied petroleum gas (LPG), propane, and hydrogen. In addition, natural gas can be used to generate electricity to power electric vehicles. Increasing the use of natural gas to fuel vehicles would require creation of an extensive viii Hayley Ackerman nationwide refueling infrastructure. Although a small number of CNG vehicles have been on U.S. roads for more than 20 years, CNG use has been limited to vehicles that return to a central garage for refueling each day, such as refuse trucks, short-haul trucks, and city buses. LNG, on the other hand, requires large insulated tanks to keep the liquefied gas at a very low temperature and is therefore seen as more suitable for long-haul trucks. In both cases, the limited availability of refueling stations has limited the distances and routes these vehicles may travel. Congress has taken a strong interest in spurring production and use of natural gas vehicles. Legislation has been introduced on a wide range of proposals that would equalize the tax treatment of LNG and diesel fuels, provide tax credits for natural gas vehicles and refueling equipment, require the production of vehicles that could run on several different fuels (such as gasoline and CNG), increase federal research and development on natural gas vehicle tank and fuel line technologies, and revise vehicle emission regulations to encourage manufacturers to produce more CNG passenger cars. Legislation pending in the 113th Congress includes proposals that would extend expired tax credits for refueling property and fuel cell vehicles (S. 2260), authorize the use of energy savings performance contracts to support the use of natural gas and electric vehicles (S. 761), and require the U.S. Postal Service to study the feasibility of using natural gas and propane in long-haul trucks (S. 1486). Chapter 2 – This document is designed to help fleets understand the cost factors associated with fueling infrastructure for compressed natural gas (CNG) vehicles. It provides estimated cost ranges for various sizes and types of CNG fueling stations and an overview of factors that contribute to the total cost of an installed station. The information presented is based on input from professionals in the natural gas industry who design, sell equipment for, and/or own and operate CNG stations. Chapter 3 – Compressed natural gas (CNG) vehicle projects can be highly profitable, or they can lose money, depending on numerous aspects of the fleet and station. To assist fleets and businesses in evaluating the profitability of potential CNG projects, the National Renewable Energy Laboratory (NREL) built the CNG Vehicle and Infrastructure Cash-Flow Evaluation (VICE) model. The VICE model demonstrates the relationship between project profitability and fleet operating parameters. This report describes how NREL used the VICE model to establish guidance for fleets making decisions about using CNG.