State Government Advocacy Committee Nov 13 2018 | Palm Springs, CA
Agenda 2:30 – 2:35 Call to Order, Introductions & Opening Remarks Sherrie Merrow 2:35 – 2:45 President’s Remarks Dan Gage 2:45 – 3:00 NGV Value Proposition Resources/Materials Sherrie Merrow 3:00 – 3:10 2018 Successes and Challenges Sherrie Merrow, Jeff Clarke Policy, Regulation, VW State Specific Issues / Needs 3:10 – 3:25 2019 State Priorities Determination Sherrie Merrow, Jeff Clarke 3:25 – 3:55 2019 State Planning / Focus States /Priorities Sherrie Merrow, Jeff Clarke Region Co-chairs, State Leads, Members 4:00 Adjourn
Opportunity: Natural Gas Vehicles Natural gas vehicles are transforming our nation’s transportation sector
NGVAmerica Members 4
The Problems Urban Emissions & Public Health Volatility of Oil Prices 5
Urban Emissions: Public Health Impacts 134 million Breathing in particle pollution increases the risk of: Americans live in areas with air that • Asthma is unhealthy to breathe… • Lung Cancer 4 out of every 10 Americans Heart Disease • • Premature Death Source: American Lung Association, 2018 6
Urban Emissions: Leading Sources Source: DTF Analysis on IHS Vehicles in Operation Data, December 2015 7
Projected Fuel-Price Differential (prices per $DGE) Natural Gas Provides Long-Term Fuel Cost Savings Natural Gas vs. Oil: • Historically 8:1 or better price advantage over oil on a Btu basis • Pump prices today $0.75 to $1.50 lower than diesel 8
The Solution Increased Natural Gas Use in Transportation: 4 Key Things to Know 9
#1: Natural Gas Is Now. Get Unmatched Emission Reduction Benefits Today 10
The cleanest heavy-duty truck engine in the world is powered by natural gas The Cummins Westport Ultra-Low NOx engine is Certified in 2018 by the U.S. certified to a 0.02 g/bhp-hr standard, which is: Environmental Protection Agency and California Air Resources Board 90% cleaner than the EPA’s current NOx standard • 90% cleaner than the latest available diesel engine • 11
In-use testing results of heavy-duty trucks in port applications found: » Natural gas vehicles emitted lower NOx: The ISL G (now L9N) and ISX12N natural gas engines emitted lower NOx emissions than the EPA certification standard. Emissions decreased as the duty cycles decreased (i.e., slower speeds, idling, stop-and-go traffic). » Diesel vehicles emit up to 5x more NOx: 2010 diesel engines with SCR emitted up to 5 times more NOx emissions than its EPA certification standard. Emissions increased as the duty cycles decreased. 12
Fueling with natural gas reduces CO 2 and greenhouse gas emissions 13 Source: NGVAmerica Emissions Whitepaper based on CARB LCFS *Numbers compared to diesel emissions (well-to-wheel)
Renewable natural gas (RNG) provides even greater CO 2 and greenhouse gas emission reductions 14 Source: www.arb.ca.gov/fuels/lcfs/fuelpathways/pathwaytable.htm, CARB, February 2017. Adjusted for heavy-duty truck applications.
What does this really mean? NGVs + RNG offer the cleanest commercially available path to reduce heavy-duty vehicle emissions 15
#2: NGVs are the Sustainable Choice. Maximize the Impact of Fleet Investment Funding 16
NGVs Deliver the Largest & Most Cost-Effective NOx Emissions Reductions Examples: Heavy Duty Trucks Refuse Trucks Transit Buses School Buses Data Source : Emission comparisons based on ANL - HDVEC tool with low-NOx engines and higher in-use diesel emissions taken into account. Useful life, cost and mileage vary by applications. Additional details available from NGVA upon request. 17
Heavy-Duty Vehicle Emissions Calculator (HDVEC) • Simple online tool based on AFLEET to help analyze AFVs for funding opportunities Examines medium-duty & heavy-duty vehicle: • Vehicle operation NO x & PM 2.5 – Well-to-Wheel GHGs – Emission reduction cost effectiveness – • Contains 4 fuel/vehicle technologies: – Diesel – Electric vehicle – Propane – Natural Gas • HDVEC available at: afleet-web.es.anl.gov/hdv-emissions-calculator/ 18
Depending on range and application, fleets can realize a pay back in as little as 18–24 months due to: • Lower fuel costs • Lower maintenance costs Incentives will reduce the pay back time frame 19
Louisiana Supports NGVs • Alt Fuel Vehicle (AFV) Tax Incentives & Credits − 30% of the cost of the equipment required to convert a gasoline or diesel fueled vehicle to an AFV may be used as a tax credit − 10% of the cost of a new AFV up to $2500 may be used as a tax credit − 30% of the cost of the equipment required for an alternative fueling station may be used as a tax credit − Sunsets on January 1, 2022 • Highway Excise Tax Discount ($0.16 per gallon equivalent instead of $0.20) • Trust Settlement − Primarily Government vehicles and school buses 20
#3: Why Wait? NGVs are Road- Tested & Commercially Available 21
NGVs are road- tested, proven technologies that are operating worldwide Data Source: NGVGlobal July 2018
Light, Medium & Heavy Duty and High Horsepower Available Today! Long & short haul truck market About 30% of transit buses About 60% all new refuse continues transition operate on NG trucks orders are NG vessels Rail industry piloting LNG locomotives 23
Cummins Westport 2018 OEM Availability 24
Fleets 25
IMO 2020 Compliance – LNG January 1, 2020: all fuel used to power marine vessels must contain no more than 0.5% sulfur, down from 3.5% sulfur by mass Three Ways to Comply • Bunker current Heavy Fuel Oil (HFO) add expensive and unproven “scrubbers” • Switch to compliant Marine Gas Oil (MGO) oil industry is not prepared for the demand • Switch to LNG already underway for many fleets – available & cost effective 26
#4: NGVs Save Money and Support Louisiana Workers. Natural Gas is a Low-Cost, Domestically Abundant Fuel 27
North America has an abundant domestic supply 28
Natural Gas Provides Fuel Price Stability Diesel: Natural Gas: • History of volatile price swings • Decades of affordable domestic reserves • Crude oil sourced fuel from high-conflict regions • Natural gas sourced from North America • Commodity cost makes up 60% of sales price • Commodity cost makes up 23% of sales price 29
Diverse network of natural gas station developers • Natural gas retail fuel sellers • LDCs • C-Stores • Truck Stops • Grocery/Warehouse stores • Leasing companies • Gas exploration & production • Midstream pipeline 30
Louisiana is among top 5 natural gas producers in America 90% of gas produced is consumed in state Source: U.S. Energy Information Administration, Annual Energy Outlook 2018 31
The Solution Increased Natural Gas Use in Transportation: Responsible, Sustainable, Available & Domestic 32
Sherrie Merrow smerrow@ngvamerica.org 303.883.5121
NGVAmerica – Taking Action in the States NGVA State Government Advocacy Committee SGAC Regions Northeast (NE) Mission – The NGVAmerica State Government Advocacy Committee CT, DE, MA, MD, ME, NH, NJ, NY, PA, seeks to promote the growth of the on-road and off-road NGV industry RI, VT, WV, DC by influencing state level government legislation, regulation and Southeast (SE) administrative policies. FL, GA, KY, NC, SC, TN, VA Strategy – Local/regional NGVA members leading/partnering with key Midwest (MW) local groups starting with NGV Coalitions and Clean Cities Coordinators IA, IN, IL, KS, MI, MN, MO, NE, OH, SD, WI Organization Gulf /South (GS) 75 member organizations / 170 members AL, AR, LA, MS, NM, OK, TX 2 Committee Co-chairs Rocky Mountain (RM) NGVA Director support CO, ID, MT, ND, UT, WY 12 Regional Co-chairs 27 State Leads for focus states West Coast (WC) AK, AZ, CA, HI, NV, OR, WA
2018 Accomplishments State Advocacy 220+ bills that impact NGVs monitored in the states (MT, ND, NV, TX not in session) 2 states passed NGV vehicle incentives 2 states passed NGV station incentives 6 states passed NGV weight exemptions (29 states total) 0 states passed incremental sales tax exemptions 2 states protected existing NGV incentives (CO, LA) 9 states passed VW legislation
State Mitigation Plans ME WA VTNH MT ND State VW NY MA MN CT RI OR WI SD EMT Plan ID MI NJ PA WY IA MD Status DE OH NE DC IL IN NV VA WV (Nov 2018) UT CO KY KS MO NC CA TN Final Plan (33) SC OK AR AZ NM GA AL MS Draft Plan (13) LA TX RFI and/or FL Meetings Held AK Lead Agency & Website HI
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