NGVAmerica News Week in Review: April 20, 2015

• Recent U.S. Senate Action on LNG Tax Equity Legislation
• NGVAmerica Submits Comments on Bipartisan Tax Reform
• EIA AEO 2015 Heavily Influenced By Falling Oil Prices
• ANGA Releases White Paper on LNG Exports
• Mack Defense to Supply Natural Gas Trucks to GSA
• Ohio School District Debuts New CNG Buses
• TruStar Energy to Install 15 UPS CNG Fueling Stations throughout U.S.
• Clean Energy Opens Four New CNG Stations, Signs Fueling Agreements
• EVO Trillium Opens CNG Station for Central Freight Lines in Texas
• Public Access CNG Station Opens in Central Florida
• Florida PSC Approves Agreement for CNG Fueling Station
• British Columbia Transit Fleet Purchases 25 CNG Buses
• Linde to Supply LNG Fuel System to New High-Speed Ferry

 

Recent U.S. Senate Action on LNG Tax Equity Legislation
April 20, 2015

This week, Senate Finance Committee Chairman Orrin Hatch (R-UT) replaced the LNG Tax Equity Bill (S.344), also known as the Bennett-Burr bill, with his own identical bill (S.917), which is his right as the Chairman of the Committee. The new bill reflects Sen. Hatch’s support for fixing the LNG tax inequity. The legislation (S. Rept. 114-27) was reported out of Senate Finance Committee and is now on the Senate Calendar. It could in theory be called up to the full Senate for “floor consideration” (debate and vote) at any time. The timing for any Senate floor activity is not certain.

For more information, contact Paul Kerkhoven at 202.824.7363 or pkerkhoven@www.ngvamerica.org.

 

NGVAmerica Submits Comments on Bipartisan Tax Reform
April 20, 2015

Recently, Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) announced a bipartisan effort to begin soliciting ideas from interested members of the public and stakeholders on how best to overhaul the nation’s tax code and to make it simpler, fairer and more efficient. In its comments submitted this week, NGVAmerica urged the Committee to take steps to level the playing field for all alternative fuels and to promote broader adoption of alternative fuels and alternative fuel vehicle technologies. A copy of our comments are now available on our website, here.

For more information contact Paul Kerkhoven at 202.824.7363 or pkerkhoven@www.ngvamerica.org.

 

EIA AEO 2015 Heavily Influenced By Falling Oil Prices
April 20, 2015

This past week, the U.S. Energy Information Administration (EIA) released the 2015 Annual Energy Outlook with projections and forecast to 2040. As expected, this year’s forecast reflects a much different outlook than the AEO 2014, largely due to the significant change in oil prices that occurred late last year. For 2015, EIA is now forecasting an average price of $57.58 per barrel oil (Brent) compared to last year’s forecast, which projected an average 2015 price of $101.95 per barrel. Similarly, this year’s projection for 2020 is $89.75 a barrel, compared to last year’s 2020 projection of $109.37.

The 2015 AEO continues to project an increase in natural gas vehicle growth, particularly in heavy-duty trucks, rail and marine transportation but at levels that have been revised downward from last year. EIA now projects natural gas will account for about 7 percent of freight truck consumption in 2040, down from 8.5 percent forecasted last years. Natural gas’ share of consumption in freight rail energy consumption in 2040 remains extremely bullish at 34.3 percent. According to our analysis, natural gas prices in transportation will continue to sell at a healthy discount to diesel fuel. Between now and 2020, natural gas compared to diesel is expected to sell at a discount of $0.40–$0.80 per diesel gallon equivalent. If petroleum prices increased because of higher than expected economic growth or political turmoil, sales projections could turn around quite rapidly. Overall, NGVAmerica thinks that EIA has tended to take an overly conservative approach regarding natural gas demand in transportation, at least in the short-term, and that has not changed in this forecast.

Some of the other major takeaways from the AEO 2015 include the EIA once again forecasting increased energy demand in the heavy-duty freight sector, which contrasts with flat or declining demand in light-duty transportation. The increased projection in heavy-duty energy consumption (700,000 barrels a day in new demand) by 2040 is attributed to increased industrial output and increased truck miles. EIA also reveals that it now expects that after 2028, the U.S. will no longer be a net importer of energy as increased domestic production and exports of natural gas and finished petroleum products offset imports. Natural gas exports will surpass imports as early as 2017 according to EIA, and by 2040 could approach 3.0 trillion cubic feet. The U.S. is expected to remain a net importer of petroleum throughout the Reference Case forecast. Net imports of petroleum, however, are expected to decline from the 33 percent level in 2013 to 17 percent in 2040. While this is positive, it still points to the fact that petroleum imports will continue to contribute significantly to trade imbalances, with the cost of these imports in the hundreds of billions of dollars a year (e.g., $167 billion in 2020, $259 billion in 2030, and $405 billion in 2040).

NGVAmerica has downloaded the key transportation figures in the AEO 2014 and AEO 2015 and has prepared side-by-side comparisons of the information. Members who are interested in receiving the information should contact Jeff Clarke at 202.824.7364 or jclarke@NGVAmerica.org.

 

ANGA Releases White Paper on LNG Exports
April 16, 2015

America’s Natural Gas Alliance (ANGA) has released a new white paper, Carpe Diem: LNG Exports Are America’s Once-in-a-Generation Opportunity. The makes the case that the United States can be a global energy leader by exporting its abundant and stable supply of natural gas without sacrificing the price advantage enjoyed by the transportation sector and domestic manufacturers. The paper shows U.S. natural gas assets are poised to transform global markets, increase geopolitical and strategic advantages for America and its allies and reduce carbon emissions on a global scale.

Click here to download a copy of the white paper.

 

Mack Defense to Supply Natural Gas Trucks to GSA
April 14, 2015

Mack Defense has been awarded contract from the U.S. General Services Administration (GSA) to supply Mack Pinnacle, Mack Granite and Mack TerraPro models from now until the initial contract ends October 31, 2015.

The GSA contract includes natural gas-powered models from Mack. Mack offers the natural gas-powered Pinnacle highway model, which runs on either CNG or LNG. All vehicles supplied under this contract will be powered by CNG. However, LNG-powered models might be included in future contracts. GSA has the option to extend the contract for an additional year through October 31, 2016.

“We are excited to offer natural gas-powered solutions for our government customers looking for alternative-fuel vehicles,” said Ryan Werling, president of Mack Defense. “We are pleased that Mack is the only OEM under the contract to offer heavy-duty natural gas vehicles.”

Mack Defense is part of the Volvo Group.

 

Ohio School District Debuts New CNG Buses
April 18, 2015

The Canton City School District in Canton, Ohio, debuted four new CNG buses this weekend at their Summer Programming Fair.

The School District worked with Clean Fuels Ohio to purchase the buses with money received from an Ohio EPA Diesel Emissions Reduction Grant. The buses, manufactured by Myers Equipment Corp., are the first CNG school buses in Northeast Ohio.

Canton City School District will be fueling the CNG buses at the Stark Area Regional Transit Authority (SARTA) public refueling station. The station opened in early 2012 and was partially funded by the American Reinvestment and Recovery Act, a grant also secured with the help of Clean Fuels Ohio.

Prior to receiving the buses, the district estimated each CNG bus will travel more than 19,000 miles each year. Canton retired spare buses and plans on deploying the CNG buses to operate on the four highest mileage routes once integrated into the fleet.

 

TruStar Energy to Install 15 UPS CNG Fueling Stations throughout U.S.
April 13, 2015

TruStar Energy has been awarded contracts to install 15 high capacity fueling stations for UPS. The CNG fueling stations, which will be located across 11 states, will fuel over 2,000 vehicles once the recently announced 1,400 new natural gas vehicles are deployed. The UPS CNG fleet includes both Class 8 tractors and their familiar brown delivery trucks called “package cars.” Station construction has already begun in Oklahoma City, Oklahoma, and New Orleans, Louisiana.

“UPS operates one of the most recognizable fleets in the world and seeing the blue CNG diamond on the sides of their tractors makes a huge statement to other freight carriers throughout the country,” said TruStar Energy President Adam Comora.

These multi-lane, multi-compressor fueling stations will allow fast fueling of their Class 8 tractors and package cars, and in certain locations will also include time-fill fueling for Class 8 tractors when practical. The stations will feature ANGI Energy compression packages that utilize Ariel compressors.

In addition to the design and construction of the stations, TruStar Energy was contracted to provide service and maintenance for 13 of the 15 stations on an annual contract basis.

 

Clean Energy Opens Four New CNG Stations, Signs Fueling Agreements
April 14, 2015

Clean Energy Fuels has opened four new CNG stations to support multiple fueling agreements in trucking, transit and refuse.

In Trucking
Clean Energy opened two new truck-friendly CNG stations to support Seaboard Transport’s expanded fleet of heavy-duty natural gas trucks. The two stations are located in Lake Havasu City, Arizona, and Kansas City, Kansas. Seaboard Transport will fuel its expanded fleet of 58 CNG trucks that are anticipated to consume 240,000 DGEs annually. Seaboard’s fleet currently fuels throughout Clean Energy’s network of stations in California, Arizona, New Mexico, Colorado, Texas, Illinois, Indiana, Ohio and Virginia.

Potelco has signed a fueling agreement with Clean Energy to fuel approximately 75 heavy duty LNG trucks in Washington state. The fleet provides electrical and gas line construction and maintenance services for many customers throughout the Northwest and is forecasted to consume approximately 360,000 DGEs of LNG annually.

Team Campbell Logistics is expected to deploy an additional 10 heavy duty CNG trucks that will fuel at Clean Energy’s station in Fontana, California. These additional trucks are forecasted to consume approximately 10,000 DGEs of CNG annually.

In Transit
DART Transit in Dallas, Texas, expands its CNG fleet with an additional 63 buses. The additional buses are forecasted to consume approximately 630,000 DGEs of CNG annually and will fuel at DART’s four natural gas stations built, operated and maintained by Clean Energy.

Longtime Clean Energy customer SuperShuttle of Austin has extended its fueling relationship for its fleet of 20 CNG vans fueling at Clean Energy’s Austin public-access station, where it is forecasted to consume approximately 240,000 GGEs of CNG annually.

Public Works of Torrance, California, began fueling its natural gas fleet at private station, which was designed, built, and is being operated and maintained by Clean Energy. The station is fueling approximately 35 refuse trucks and 29 transit buses with an estimated 390,000 DGEs of CNG annually. The Torrance natural gas transit fleet is expected to expand with an additional 26 transit buses in the second quarter of 2015.

In Refuse
Burrtec has contracted with Clean Energy for a third CNG station in Santa Clarita, California. Clean Energy will design, build, operate and maintain the new station. The station will fuel approximately 22 CNG refuse trucks, which are forecasted to consume approximately 200,000 DGEs of CNG annually.

 

EVO Trillium Opens CNG Station for Central Freight Lines in Texas
Apr 16, 2015

EVO Trillium, the joint venture partnership between EVO CNG and Trillium CNG, is pleased to announce the grand opening of their new CNG fueling station located in Fort Worth, Texas.

The station features four dual hose dispensers with NGV-1 and T-5000 nozzles and uses Trillium CNG’s proprietary fast-fill hydraulic intensifier compressor (HY-C). The station has been designed to accommodate Class 8 tractors and trailers, as well as smaller vehicles, and is open to the public 24 hours a day, seven days a week.

“This Fort Worth fueling facility is the third and the most important CNG fueling site we will have across Texas,” said Don Orr, President and CEO of Central Freight Lines. “We are now able to complete the triangle in Texas, moving our CNG line fleet between all the major markets in Texas including Houston, San Antonio and the DFW area.

This project is funded in part by the State of Texas through a Clean Transportation Triangle Grant from the Texas Commission on Environmental Quality.

 

Public Access CNG Station Opens in Central Florida
April 15, 2015

Integral Energy announced a ribbon cutting ceremony will be held for a new public access CNG station on the eve of the 45th anniversary of Earth Day, Tuesday, April 21. The CNG station is the result of a partnership between Dillon Transport, Integral Energy, The Mosaic Company and Trillium CNG. Florida Public Utilities and Tampa Electric will provide natural gas and electric utility services respectively. The station has three fueling positions and is open 24 hours a day, seven days a week.

“We now have 100 trucks in Central Florida and are eager to continue expanding our services,” said Charles Musgrove, COO of Dillon Transport. “Jobs have been created through the construction and planning phases and will continue as we hire new truck drivers as well as people to maintain the property.”

Dillon Trucking will also offset more than three million gallons of diesel fuel per year by using natural gas.

For companies converting their fleets to natural gas, such as Dillon Trucking, the Florida Department of Agriculture and Consumer Services offers a Natural Gas Fuel Fleet Vehicle Rebate to help with the costs associated with the conversion, purchase or lease for a minimum of five years. There are eligibility requirements and maximum rebates per vehicle, but each applicant may receive up to $250,000 per fiscal year.

 

Florida PSC Approves Agreement for CNG Fueling Station
April 16, 2015

The Florida Public Service Commission (PSC) has approved Peoples Gas System’s (Peoples) special contract with Nopetro to develop a CNG fueling station. Peoples will extend its distribution facilities to service Nopetro’s CNG fueling facility for buses owned by LYNX, the City of Orlando’s transit system.

“The PSC fully supports utilities’ plans to facilitate natural gas use as a motor fuel. It offers local communities a way to improve business operations with a clean, viable fuel source,” said PSC Chairman Art Graham. “Fleet managers are finding that CNG is a good option, both economically and environmentally.”

To provide service to Nopetro, Peoples will extend its distribution facilities by 5.1 miles. Peoples customers will not be affected by the 15-year contract, since Nopetro will be responsible for the distribution charge, as well as any customer charge, Energy Conservation Cost Recovery charge, or Cast Iron Bare Steel Replacement Rider surcharge.

Nopetro’s facility in Orlando will be similar to one it operates in Tallahassee, where it daily fuels trucks and buses for the Leon County government, the City of Tallahassee and the Leon County School Board.

 

British Columbia Transit Fleet Purchases 25 CNG Buses
April 17, 2015

The City of Kamloops in British Columbia, Canada, has purchased 25 New Flyer CNG buses that will be introduced into service by the end of May as they clear inspection and are prepared for service. The total cost of the buses was roughly $14.8 million, and they were purchased through New Flyer Industries in Winnipeg, Manitoba.

To help offset the initial costs associated with the purchase of the new CNG buses, FortisBC will provide funding of up to $577,500. This funding represents 70 percent of the cost differential of the CNG buses over equivalent diesel buses.

“Natural gas is a cleaner-burning, lower-priced fuel that is abundant in B.C., and we are dedicated to working with municipalities and organizations like BC Transit to take advantage of new opportunities for this fuel source,” said Dave Bennett, Director, External Relations at FortisBC.

A CNG fueling station is near completion at the Kamloops Transit Center. The cost of the fuelling station is estimated at $2.5 million.

Kamloops is the second BC Transit community to adopt CNG technology; the Regional District of Nanaimo introduced its CNG fleet in 2014. The CNG buses in Nanaimo have proved reliable, clocking an average of 33,000 miles each in their first year of service.

 

Linde to Supply LNG Fuel System to New High-Speed Ferry
April 2015

The Linde Group, via its Swedish Engineering subsidiary Cryo AB, has been awarded a contract by Meyer Turku Shipyard of Finland to build an LNG fuel system for the high-speed ferry being built for AS Tallink Grupp. The ferry will operate in the Baltic Sea between Helsinki, Finland, and Tallinn, Estonia, and has been designed to comply with the European Emission Control Area (ECA) limits by using LNG as fuel.

The LNG fuel gas system consists of two horizontal, vacuum-insulated tanks plus gas handling and control systems. It will supply natural gas to the vessel’s dual-fuel engines. The ship’s service speed of 27 knots is partly attributable to its innovative hull shape, engineered specifically to increase fuel efficiency. The ship has a capacity of 2,850 passengers and will be delivered at the start of 2017.

In June last year, the Finnish Transport Agency commissioned Cryo AB to build an LNG fuel gas system for a new icebreaker. In Nynäshamn, south of Stockholm, Linde built Sweden’s first LNG terminal in 2011. In 2012, Linde and marine fuel specialist Bomin founded a joint venture company, Bomin Linde LNG, which is developing a supply chain for LNG as marine fuel including the provision of required infrastructure.