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Natural Gas Vehicle & Alternative Fuels Incentive Grant Programs
AFIGResults of Round 1 NGV
Preparations for Round 2 NGV
P3NGV WorkshopsJune 18‐21, 2013
PA Natural Gas Grant Programs
• Two Grant Programs:• Natural Gas Vehicle Grant – aka Act 13
– Phase 1 awarded, Phase 2 opening this year, Phase 3 opening July 2014
• Alternative Fuels Incentive Grant– Also includes non‐natural gas vehicles
• Eligible costs: – Incremental purchase costs for new alt fuel vehicles – Retrofit costs for existing vehicles
• Max. 50% or $25,000 per vehicle, whichever is lower• Minimum of 5 vehicles, all must meet EPA requirements• Eligible applicants may partner to aggregate under one application to support a primary fueling station
• Ineligible costs: –Project development costs (engineering/FS/design)–Fueling infrastructure
AFIG & NGV What’s the Same
• Vehicle types – details to follow
• Eligible applicants (mostly semantics):
AFIG & NGV What’s Different
AFIG NGV
Corporations, LLCs, or partnerships incorporated or registered in the state
For ‐ profit companies
Municipal authorities Commonwealth or municipal authorities
Political subdivisions * PA Turnpike Commission
Incorporated non‐profit entities * Non‐profit organizations
School districts * State owned or related universities
Local transportation organizations *
• Alternative Fuels Incentive Grant• Open through July 26, 2013• $10 million• Medium, light‐duty, & passenger vehicles• 50% incremental purchase & retrofit• Innovative technology• www.depweb.state.pa.us (select NGV Grant Program)
NGV Incentives – AFIG
AFIG – Vehicle Purchase & Retrofit
Eligible Vehicles– CNG/LNG
• Dedicated, bi‐fuel, dual‐fuel• GVWR under 14,000 lb
– Other alternate fuels• LPG, electric, hydrogen, hythane, biofuel, alcohol• Dedicated only• No GVWR restriction
• Innovative Technology Projects– Includes R&D, demonstration, pilot projects for next phase alternative transportation fuels or vehicles
– Expected to directly result in commercialization
• Fueling equipment will be considered– Must be innovative– First deployment in PA
AFIG – Innovative Technology
• Authorized by Act 13 of 2012 • Round 1 awarded $6.7 million, 18 projects• Round 2 opens 3Q 2013 (~mid‐Aug)• $11 million• Heavy duty vehicles only (>14k lb. GVWR)• 50% incremental purchase & retrofit• Round 3 in 2014• www.depweb.state.pa.us (select NGV Grant Program)
NGV Incentives – Act 13 NGV Grant
• Applications:• Total $ requested:• Average $ request:• Avg. GGE/app.
49$12.9 million$280k67,000
18$6.7 million$299k206,000
Applied Awarded
NGV Round 1 Application Summary
• Number of NGVs:• Avg. $/vehicle: • Avg. vehicles/app.:• Total fuel usage:• Avg. fuel/vehicle:
661$21,000136.3m gge/yr9,500 gge/yr
311$21,700173.7m gge/yr12,000 gge/yr
Applied Awarded
NGV Round 1 Vehicle Summary
• Total new fuel stations:• CNG:• LNG:• Full public access• Limited access• Private access
3326710194
Proposed Awarded
17143575
NGV Round 1 Fuel Station Summary
• $492,216 awarded for 35 CNG vehicles
• 114,000 GGE
• Location: King of Prussia, Montgomery County
– Fast fill constructed this spring, up and operating
– Public access
Greater Phila. Clean Cities
• $499,994 awarded for 22 CNG buses
• 66,000 GGE
• Location: Media, Delaware County
– Time fill station to be constructed in 2013
– Private Access
Rose Tree Media School District
• Round 2 NGV available funding– Round 2: $11.1 million– 50% to Local Transportation Organizations (LTO)– Mechanism to allow contracted school bus service to be eligible under the LTO category
PA NGV Grant Program
• Eligible vehicles: –Dedicated CNG vehicles –Dedicated LNG vehicles –Bi‐fuel vehicles
– Fueled in part by NG and in part by diesel or gasoline
–14,000 lb. or greater GVW • Must be registered in PA
PA NGV Grant Program
• $300,000 grant award limit for projects using existing fueling infrastructure
• $500,000 grant award limit for projects that include construction of new fueling infrastructure
• Fueling stations that are associated with a Round 1 grant award will not be considered new stations for Round 2 ($300k award limit applies)
PA NGV Grant Program
• More detail requested on EPA compliance for vehicle conversions
• DEP’s project evaluation criteria to put additional emphasis on public accessibility of fuel stations
• A specific date will be set prior to which no purchase or retrofit cost can be incurred – as was done in AFIG
NGV Grant Program Round 2 Updates
• New dedicated vehicles over aftermarket retrofits– Greater petroleum offset & fuel cost savings– More certain EPA compliance– More predictable fuel performance
• Avoid overstating projected fuel displacement, particularly dual fuel conversions
NGV Program: Tips for Round 2
• Project narrative needs to thoroughly and firmly state project plans
• Don’t overlook financial viability analysis
• Ensure firm fuel station plans, particularly location and fuel source confirmation
• Aggregations are effective
Reminders for BOTH
• Alternative & Clean Energy (DCED)• Rolling application – next one due no later than July 16 (possibly July 9)
• CNG & LNG fueling stations included• Max 30% grant• Max 50% grant/loan combination• www.newpa.com (search “ACE”)
NGV Incentives – ACE Grant
• $0.50 per gallon for CNG & LNG• Expires end of 2013• Eligibility
– Entities liable for fuel excise tax– Tax exempt entities using on‐site fuel station
• Credit against tax liability w/ excess as direct payment from IRS
NGV Incentives – Fuel Tax Credit
Heather A. Cowley484.250.5816 [email protected]
www.depweb.state.pa.us and click on “Natural Gas Vehicle Program”