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Natural Gas VehiclesNatural Gas Vehicles
NYCLHVCC CNG WorkshopNYCLHVCC CNG Workshop
March 13, 2012March 13, 2012
• We Have the Fuel – And It’s Ours
• Substantial Air Quality: Urban Pollution
• Substantial Air Quality: GHGs
• Biomethane Makes GHG Case Stronger
• Only Natural Gas Can Displace Diesel
• NGVs are a Here-and-Now Technology
• Policymakers are Recognizing the Value of NGVs
• Money!!
Why the NGV Market Will GrowWhy the NGV Market Will Grow
Barriers to NGV Development Barriers to NGV Development
• Initial high cost of vehicle and fueling infrastructure
• Economics not compelling enough for fleets that do not use enough fuel
• Many fleets require very short payback periods– Anywhere from 3-5 years
Barriers to NGV Development Barriers to NGV Development
• Reluctance of fleets to share private fueling stations (security, insurance, safety issues)
• Resistance to new technology
• Lack of light duty OEM products
• Lack of bi-fuel LDVs in CARB states
How to Overcome Barriers How to Overcome Barriers
• Target high fuel use fleet applications first
• Develop open access stations – public or private locations
• Provide incentives for station owners to build large stations
Overcoming Barriers Overcoming Barriers
• Provide incentives for station owners to build near major transportation corridors
• Provide incentives to help buy-down incremental cost of vehicles to accelerate payback, increase demand for vehicles
US Target MarketsUS Target Markets• Heavy-duty freight trucks:
– Water ports and rail
– “Less-than-Load” (e.g., Yellow-Roadway, Forward Air, Swift)
• Transit buses/shuttle buses/school buses
• Major metro fleet management and public works departments
• Trash, recycling, cement and other vocational work trucks
• Medium-duty delivery and commercial service trucks:– Telecom ─ food ─ beverage ─ snack food ─ newspapers
– linen/laundry ─ grocery ─ furnishings/appliances ─ office products
• Taxis and light-duty service vehicles
NGV Market Development Creates Jobs• Exploration & Production Jobs• Manufacturing Jobs• Installation / Service Jobs• Indirect /Secondary Job Creation
– Local businesses (stores, restaurants)
– Increased profitability; fleets save 30-50%
• Freight Hauling
• F&B Delivery, Consumable services
• Refuse Collection/Transfer
• Transit
• Taxi/Shuttle
• Energy/Communications Utilities
•
US IncentivesUS Incentives• Fuel Use Credit.
– 50 cents per gge goes to the seller of CNG/LNG when used as a transportation fuel
– Expired on 12/31/2011 (Extension possible)
• Infrastructure Credit– The lesser of $30,000 or 30 percent of the cost of a
fueling station – $1,000 for a home refueling unit– Expired on 12/31/2011 (Extension possible)
• Various State Incentives (continued)
Innovative State Legislative ProposalsInnovative State Legislative Proposals
• Offer tax credits on a competitive basis or first-come-basis
• Capping annual tax credits so as to limit budgetary impact
Innovative State Legislative ProposalsInnovative State Legislative Proposals
• Allowing tax credits to count against income taxes as well as other types of taxes
• Allowing tax credits to be transferred or sold
• Targeting credits to fueling stations located near corridors and/or requiring open access
US Legislative ProposalUS Legislative Proposal• New Alternative Transportation to Give Americans
Solutions (NAT GAS) Act of 2011 :– To accelerate use and growth of NGVs– Introduced in both the House and the Senate
• Key tax credit provisions would address:– Fuel use– Vehicle purchase price– Fueling infrastructure installation– Indian Tribes
(continued)
US Legislative ProposalUS Legislative Proposal
• Key provisions would address:– OEM Vehicle Production Incentives– NGV RD&D– Streamlining EPA conversion systems certification
Questions?Questions?
Contact Paul C. KerkhovenContact Paul C. Kerkhoven202.824.7363202.824.7363
[email protected]@ngvamerica.org
www.ngvamerica.org www.ngvamerica.org