Tuesday, November 26, 2013

The Tie That Binds Alternative Fuel Vehicles And A Commercial Laundry

Two small-business owners in North Miami, Fla., recently completed a plan that repurposed a commercial property on 119th St. in the city from a laundry facility and mini-mart to a state-of-the-art alternative fuel station.

Years ago, the laundry that Andrew Gold and business partner Abdul Razzak Khanani owned was operating on a propane-fired boiler. There were no spots nearby for consumers to buy propane, so the partners took advantage of the 1,000-gallon tank on site and began selling LPG on a retail basis. Norgetown Propane was born.

Fast-forward to today, and the mini-mart has been razed, and Norgetown's headquarters has evolved into the only public-access propane autogas station anywhere near Miami. Gold tells NGT News that providing fuel for propane vehicles is an immense opportunity for companies like his.

"It's a coming trend," he says. "We really see this as the future of the industry."

Last week, Norgetown welcomed the public and local dignitaries to a ribbon-cutting at the company's HQ. The site has undergone a complete facelift, courtesy of a 50/50 partnership between Norgetown and the North Miami Community Redevelopment Agency, which is focused on helping businesses improve their facilities and, in turn, attracting new commercial activity.

The above-ground 1,000-gallon propane tank at 1005 NW 119th St. is gone, replaced by a 2,000-gallon underground tank. That installation required "major pumps," Gold says, in order to get the gas out of the ground at the rate Norgetown wanted.

Ultimately, the company installed a 7.5 hp pump that yields 10 gallons of propane to the nozzle in 30 seconds. There are four autogas dispensers on site, and the facility is manned 24/7. Read more here.

Monday, November 25, 2013

Propane provides stunning fuel savings

Commercial truck and bus fleets in the United States are becoming keenly interested in running their vehicles on liquid propane (LPG), as this column reported back in March. That's because propane prices are substantially below those for gasoline or diesel, or even for compressed natural gas (CNG). Moreover, LPG provides substantial savings in maintenance costs and up to a 50-percent reduction in CO2 emissions. Now, the question is, will LPG catch on with everyday drivers and not just commercial fleets?

LPG, also known as autogas, can be unbelievably cheap – if you buy it in bulk. Anyone who fills up the tank for their barbeque grille, or heats their home with it, will tell you that it's as expensive as gasoline. But fleets that commit to buying in bulk can get a substantial discount.

"Today we're buying LPG at $1.14 a gallon and we get a 50-cent federal tax credit, so we're actually paying 64 cents a gallon. It's been a real winner for us," says Edgar Benning, the General Manager of the Mass Transportation Authority for the city of Flint, Michigan.

The city of Flint, which is struggling through hard economic times, is saving so much money on fuel that the LPG vehicles are actually paying for themselves. Benning says it costs the city 13 cents per mile to operate its vehicles on LPG versus 41 cents a mile using diesel fuel.

The interest in propane as a fuel is a direct result of the shale bonanza that is transforming the US energy sector. As recently as only five years ago, propane was largely produced from petroleum and its price was directly tied to the price of oil. Today, propane is largely a by-product of natural gas production. The US has such a surplus that it has become a net exporter, and in some areas there is such an abundance that producers are pumping it back into the ground. Read more here.

Tuesday, November 19, 2013

Hansen: State easing off gas, onto alternative fuels


We cannot meet in his office, because he doesn't have an office.

I don't need to schedule an interview through his public relations person, because he doesn't have one of those, or an assistant, or any employees.

Instead, Jim McGee plops down beside me at a coffee shop, greets me with a pat on the back and hands me a homemade business card that says, “Nebraska Clean Cities Coalition.”

McGee, a longtime Nebraska Department of Roads official, now runs a nonprofit devoted to weaning Nebraskans off gasoline-powered cars.

Only one tiny hurdle: Nearly every single Nebraskan, including McGee and yours truly, drives a gas-powered car.

“I am more encouraged than I ever thought I would be,” McGee says. “The more I see, the more I sense that the glass is filling up.”

So far as I can tell, Jim McGee is not delusional.

Rather, his is an exercise — a lesson, really — in looking at the marathon ahead and then simply deciding to put one foot in front of the other.

Here's a step: Omaha and Millard students are now transported to their schools by 434 propane-powered buses. It's the largest propane-powered fleet of its kind in the country.

Here's a step: A local plumbing company runs its service vans on compressed natural gas — an energy that, while not exactly clean, at least comes from inside the United States.

Here's a step: Nebraska truck stops are starting to explore truck electrification, which allows truck drivers to live in their semis without constantly idling their engines.

McGee just started his new job as the first paid director of Nebraska Clean Cities, a position paid for temporarily by a federal grant. Read more here.

Thursday, November 14, 2013

Alternative-Fuel Tax Credits for Fleets

The Internal Revenue Service (IRS) might not be the first agency that springs to mind when seeking funding for alternative-fuel vehicles, but, in reality, the IRS has several programs aimed to directly benefit users of alternative fuels and alternative-fuel vehicles.

In addition to the $7,500 IRS tax credit available for the purchase of certain plug-in electric vehicle as covered in the September/October 2012 issue of Green Fleet magazine, there is also a 50-cents-per-gallon tax credit available for dispensing certain alternative fuels used to operate a motor vehicle.
In essence, this program funds back 50 cents for each gallon of a “qualified alternative fuel” dispensed. This easy-to-apply-for tax credit is available to fleets that qualify even if they are exempt from income taxes with only a minimum expenditure of time and effort. Most fleets will be able to gather the required records and complete the required paperwork in less than one hour.
What Alternative Fuels are Eligible?

The American Taxpayer Relief Act of 2012 extended the 50-cents-per-gallon federal alternative motor fuel tax credit through Dec. 31, 2013, and also made it retroactive for all of 2012. Qualifying fuels under this program include compressed natural gas (CNG), based on 121 cubic feet; liquefied natural gas (LNG); liquefied petroleum gas (LPG), aka propane autogas; P-Series fuel; liquid fuel derived from coal through the Fischer-Tropsch process; and compressed or liquefied gas derived from biomass.
While this federal program has been around since 2005, many eligible fleets may not be aware of its existence and could be missing out on an opportunity to bring external revenue into their operation.
Who Qualifies?

Fleets dispensing CNG, LNG, LPG/propane autogas, and the less common alternative fuels previously noted are all eligible for this tax credit. The operative word here is “dispensing,” as the fleet claiming the tax credit must be what the IRS refers to as an “Alternative Fueler.” Read more here.

Propane Autogas Event Planned for March in Texas

The Propane Engine Fuel Summit will be convening on March 27, 2014, at the Irving Convention Center in Irving, Texas, as a part of the fifth annual Texas Altcar Expo.

The summit, now in its fourth year, will include the latest propane autogas technologies, product offerings, industry partnerships, funding opportunities, end-user fleet applications and more. Event partners include Dallas-Fort Worth Clean Cities, North Central Texas Council of Governments and TSN Communications.

The summit will be available live via online webcast, free of charge.

Contact Greg Zilberfarb at (703) 779-4890 for more information, or click here.

HDT's Top 50 Green Fleets

When we first came up with the idea to feature the country’s top green fleets, the initial plan was simply to rank them based on the number of alternative fueled vehicles used. However, we quickly realized that, to paraphrase a certain frog, it’s not so easy to decide who’s green.

Green strategies vary greatly depending on the operation. For one company, natural gas might make sense. For another, green might mean solar-powered warehouses. For others, it’s all about fuel-efficient specs and driver training.

So the end result is a bit more subjective. We asked fleets, through e-mails, posts on social media, stories on Truckinginfo.com and in our daily Headline News e-newsletter, to fill out a short online survey about their vehicles, alternative fuel and other green initiatives, and tried to choose those who were ahead of the curve in their sustainability efforts. In some cases, we relied on publicly available information. Our focus was primarily on medium- and heavy-duty trucks. Our picks are presented in alphabetical order.

We did not include leasing fleets, but did ask leasing companies for names of their lease customers for consideration. Leasing companies such as Ryder and PacLease have been proactive in helping fleets research and test alternative fueled vehicles and get the most fuel efficiency and productivity. Read more here.

Tuesday, November 12, 2013

The Propane Effect

Fleet sees return-on-investment in just a year’s time

 Among the considerations fleets must review before switching to an alternative fuel are vehicle miles driven in a day, total cost of ownership, infrastructure improvements, and fuel price. For some fleets, answering that quartet of questions opens a number of possibilities. For Lake Michigan Mailers, though, the answers led to a single conclusion.

“Not only did propane autogas fulfill all of our requirements, but a study showed it would give us the fastest return on our investment,” says David Rhoa, president. “When we saw the results, we were absolutely convinced that propane autogas was the most viable option for our needs.”

A typical Ford E-150 van in Lake Michigan’s 30-vehicle fleet runs more than 100 mi. a day, making electric vehicles an impractical option, Rhoa says. Compressed natural gas was rejected because of the costs associated with building a supporting infrastructure for a fleet the size of Lake Michigan. The E85 blend of gasoline was also not a viable solution because fewer Michigan gas stations support that fuel. But propane was the answer to each question asked. With the help of propane supplier AmeriGas, which has installed a 1,000 gal. propane autogas tank at Lake Michigan’s Kalamazoo, MI, facility, the company is on its way to a fleet conversion. Read more here.

Monday, November 11, 2013

Five Green Trends in Fleet

When it comes to the world of alternative fuels, alternative power and environmental initiatives for fleets, the Green Fleet Conference is the hub of the universe. From last week’s conference in Phoenix and other recent travels and inquiries, here are a few trend lines to follow:

Natural gas is taking over the universe.

Not really, but it feels that way. In recent years, the movement to compressed natural gas (CNG) was advancing with the help of third-party CNG conversion manufacturers such as Westport, Landi Renzo and Venchurs. These companies are not only surviving, but they’re also expanding their offerings. But when the auto manufacturers initiate their own product offensives, you know that CNG has come into its own.

General Motor’s next generation HD pickups will have a bi-fuel CNG option for all cab styles, while dedicated CNG options continue to be available on GM vans. Chrysler’s CNG Ram 2500 went on sale this year. Ford has expanded CNG offerings with four QVMs now. Large truck makers, including Kenworth, Navistar and Mack, are adding options for CNG and LNG (liquefied natural gas). Navistar head Dan Ustian has called natural gas “the most realistic alternative fuel option to the trucking industry.”

The premium on CNG conversions is shrinking. Materials costs for tanks are coming down and economies of scale are being realized. A few years ago, light-duty conversions retailed for more than $11,000; today, Venchurs’ conversion for Ford’s F-250 and F-350 models with a 24-gallon tank costs $8,350.

At Green Fleet, when the conversation centered on fleet implementation and measurable return on investment, fleet managers were talking about CNG more than anything else.

Propane is still a part of the conversation and is expected to grow, especially in vocational applications such as school transportation and shuttle buses. Though per-gallon pricing is generally higher than CNG and pricing is subjected to more fluctuation, propane is particularly attractive because the costs to install a fueling station are significantly less than one for CNG.

The EV market has stalled (at least with fleets).

Again, when truck manufacturers either expand or abandon their alt-fuel or power product portfolios, it’s a good way to gauge how the trade winds are blowing. Last year, Ford ditched its Transit Connect Electric upon the bankruptcy of electric components maker Azure Dynamics. Navistar is no longer making its eStar electric truck, while Eaton has quietly dropped its Hydraulic Launch Assist system for diesel-electric hybrids.

At a Green Fleet seminar, Andrew Douglas of Kenworth reported “a dramatic drop off in sales of diesel-electric hybrids in favor of CNG.” In general, fleets report that they are staying on the sidelines when it comes to electric because the technology still relies on government subsidies, and no one thinks that existing subsidies will remain for much longer. Read more here.

Propane and Natural Gas Vehicles Could Get a Nice Boost from New Legislation

State representatives Sean J. O'Brien and Dave Hall introduced legislation into the Ohio House of Representatives this week that is aimed at goosing the state's alternative fuel vehicle sector.

Central to the proposed bill is a gaseous fuel vehicle conversion program, covering vehicles that run on compressed natural gas (CNG), liquefied natural gas (LNG) or propane autogas. Through the program, the state would offer grants to public fleets - namely, state and municipal entities, school districts and public transportation agencies - as well as nonprofit corporations.

These grants would cover 100% of the cost of CNG, LNG or propane vehicle conversions, or 100% of the incremental cost of buying an OEM natural gas or propane vehicle.

Should the bill be enacted, the specific eligibility requirements would need to be specified. But the bill does note that the cap on these grants would be $500,000 per "eligible entity." And O'Brien's office tells NGT News that the grant program overall would be capped at $16 million annually.

For private business fleets and individuals, the bill would enact tax credits for alternative fuel vehicle purchases or conversions. Like the public fleet grant program, these tax incentive would cover CNG, LNG or propane vehicles - both dedicated and bi-fuel models.

The credits for private fleets and consumers would be equal to 50% of the incremental cost of acquiring an alt-fuel vehicle from an OEM, or 50% of the vehicle conversion cost. The legislation does include per-vehicle caps on the tax incentives: For vehicles 8,500 lbs. GVWR or less, $5,000; for medium-duty vehicles 8,500 lbs. to 10,000 lbs. GVWR, $10,000; and for medium- and heavy-duty vehicles that come in at more than 10,000 lbs. GVWR, $25,000.

The bill specifies that the grant and tax-credit programs be phased out after a five-year period. This measure, says Clean Fuels Ohio Executive Director Sam Spofforth, was particularly helpful in attaining the immense co-sponsorship for the O'Brien/Hall bill - some 61 fellow House members, along bipartisan lines, O'Brien's office confirms. Read more here.

Energy Department Launches Alternative Fueling Station Locator App

As part of the Obama Administration's commitment to expand access to data and give consumers more transportation options that save money at the pump, the Energy Department today launched a new mobile app to help drivers find stations that provide alternative fuel for vehicles.

Developed by the National Renewable Energy Laboratory with support from the Energy Department, the Alternative Fueling Station Locator app provides information on more than 15,000 stations across the country. Users can search for stations that offer electricity, biodiesel (B20), natural gas (compressed and liquefied), ethanol (E85), hydrogen, and propane. After the user selects a fuel, the app maps the stations closest to his or her current location. The app also includes the stations' addresses, phone numbers, and operating hours. Using the app's filters, drivers can also search for stations that meet certain parameters, such as whether the station is open to the public and what payment methods it accepts.

Alternative fuel vehicles produce fewer greenhouse gases and harmful emissions than their conventional counterparts and reduce the United States' dependence on imported oil. This app is just the latest tool the Energy Department has made available to help drivers find the right vehicle and fuel that suits their needs. It is a mobile version of the Alternative Fueling Station Locator website, one of 15 tools designed to reduce the use of petroleum in transportation available on the Department's Alternative Fuels Data Center. Read more here.

Texas Part of Global Autogas Trend

Home to the world’s largest propane storage facility, Texas continues to be among the global leaders in using propane autogas to power fleet vehicles and mowers. Propane autogas, the world’s top alternative fuel, is one of most widely used global fuel sources, ranking third only to gasoline and diesel. Cost-effective and clean-burning, autogas is used to power more than 21 million vehicles worldwide. Because of its economic and practical uses, the number of fleet operators converting to propane autogas both in Texas and around the globe continues to grow.

Along with Texas, fleets in UK, Hong Kong, India, and Australia are switching to propane autogas. For instance, Hong Kong is making strides transitioning to alternative fuel. The Hong Kong version of Ford Motor Co.’s Transit Connect Taxi, which will run on a liquefied petroleum gas fuel system, made its debut in the Chinese city late last month.

In Texas, there are more than 2,000 school buses powered by propane. State agencies like the Texas Department of Transportation have more than 900 propane vehicles in their fleets, and local governments like municipalities and counties are also making the switch to propane. Public entities are not the only ones switching to the popular alternative fuel; businesses like Frito Lay, Dish Network and DHL are also going green with propane. Read more here.

Wednesday, November 6, 2013

Feds Develop Alt-Fuel Analytical Tool

Several federal environmental agencies have developed an online calculator for fleet managers that helps estimate gasoline usage, greenhouse gas emissions, air pollutant emissions, and the cost of ownership of vehicles.

The Argonne National Laboratory and Clean Cities have released the Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) tool, which uses simple spreadsheet inputs. The AFLEET tool provides three calculation methods.

First, the Simple Payback Calculator estimates a simple payback of the purchase of a new alternative-fuel vehicle compared to a conventional counterpart. The calculator factors in acquisition and annual operating costs, as well as average annual petroleum use, greenhouse gases, and air pollutant emissions.

The tool also offers the Total Cost of Ownership Calculator, which estimates the net present value of operating and fixed costs over the years of planned ownership of a new vehicle, as well as lifetime petroleum use, greenhouse gases, and air pollutant emissions.

Lastly, the Fleet Energy and Emissions Footprint Calculator estimates the annual petroleum use, greenhouse gases, and air pollutant emissions of existing and new vehicles, taking into consideration that older vehicles typically have higher air pollutant emission rates than newer ones. Read more here and download the spreadsheet here.

Monday, November 4, 2013

Stakeholder Spotlight: Seguin Independent School District

Seguin Independent School District's Transportation Department shares their story for implementing propane school buses into their fleet.

Every day the transportation department for Seguin Independent School District (ISD), the largest school district in Guadalupe County, transports students all across the 365-mile district. Whether students are attending sports functions, field trips, or needing to get to and from school, there is a bus driver ready at the wheel to transport them.

Like most districts, Seguin ISD’s school buses are big, bright yellow buses with the name of their district stenciled across the sides in black paint. However, unlike conventional buses that run on diesel, many of Seguin ISD’s buses run on propane.

In 2008, Seguin ISD received 21 propane-powered school buses for their transportation department. Purchasing the alternative fuel buses was not an easy decision and was conducted for nearly a year before the purchase was made.

A contributing factor to the decision to purchase the propane buses was cleaner air for students and the community. When compared to vehicles fueled by conventional diesel or gasoline, propane creates lower amounts of some harmful air pollutants and greenhouse gases. For more information on propane vehicle emissions visit: http://www.afdc.energy.gov/vehicles/propane_emissions.html.

In addition to reducing harmful emissions, there’s another important benefit to using propane. The cost of running the bus fleet on propane is much less than running it on diesel. Read more here.