State Government Advocacy Committee Nov 13 2018 | Palm Springs, CA - - PowerPoint PPT Presentation

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

Source: American Lung Association, 2018

Breathing in particle pollution increases the risk of:

• Asthma
• Lung Cancer
• Heart Disease
• Premature Death

134 million

Americans live in areas with air that is unhealthy to breathe… 4 out of every 10 Americans

6

Urban Emissions: Leading Sources

Source: DTF Analysis on IHS Vehicles in Operation Data, December 2015

7

Natural Gas vs. Oil:

• Historically 8:1 or better price advantage over
• il on a Btu basis
• Pump prices today $0.75 to $1.50 lower than

diesel

Natural Gas Provides Long-Term Fuel Cost Savings

Projected Fuel-Price Differential

(prices per $DGE)

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

Certified in 2018 by the U.S. Environmental Protection Agency and California Air Resources Board The Cummins Westport Ultra-Low NOx engine is certified to a 0.02 g/bhp-hr standard, which is:

• 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 CO2 and greenhouse gas emissions

Source: NGVAmerica Emissions Whitepaper based on CARB LCFS *Numbers compared to diesel emissions (well-to-wheel)

13

Renewable natural gas (RNG) provides even greater CO2 and greenhouse gas emission reductions

Source: www.arb.ca.gov/fuels/lcfs/fuelpathways/pathwaytable.htm, CARB, February 2017. Adjusted for heavy-duty truck applications.

14

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 NOx & PM2.5 – 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

19

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

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

About 30% of transit buses

• perate on NG

About 60% all new refuse trucks orders are NG Long & short haul truck market continues transition Rail industry piloting LNG locomotives vessels

Light, Medium & Heavy Duty and High Horsepower Available Today!

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)
• il 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:

• History of volatile price swings
• Crude oil sourced fuel from high-conflict regions
• Commodity cost makes up 60% of sales price

Natural Gas:

• Decades of affordable domestic reserves
• Natural gas sourced from North America
• Commodity cost makes up 23% of sales price

29

• Natural gas retail fuel sellers
• LDCs
• C-Stores
• Truck Stops
• Grocery/Warehouse stores
• Leasing companies
• Gas exploration & production
• Midstream pipeline

Diverse network of natural gas station developers

30

Louisiana is among top 5 natural gas producers in America

Source: U.S. Energy Information Administration, Annual Energy Outlook 2018

90% of gas produced is consumed in state

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)

CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT, WV, DC

Southeast (SE)

FL, GA, KY, NC, SC, TN, VA

Midwest (MW)

IA, IN, IL, KS, MI, MN, MO, NE, OH, SD, WI

Gulf /South (GS)

AL, AR, LA, MS, NM, OK, TX

Rocky Mountain (RM)

CO, ID, MT, ND, UT, WY

West Coast (WC)

AK, AZ, CA, HI, NV, OR, WA

Mission – The NGVAmerica State Government Advocacy Committee seeks to promote the growth of the on-road and off-road NGV industry by influencing state level government legislation, regulation and administrative policies. Strategy – Local/regional NGVA members leading/partnering with key local groups starting with NGV Coalitions and Clean Cities Coordinators Organization

• 75 member organizations / 170 members
• 2 Committee Co-chairs
• NGVA Director support
• 12 Regional Co-chairs
• 27 State Leads for focus states

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 VW EMT Plan Status

(Nov 2018)

Draft Plan (13) RFI and/or Meetings Held Lead Agency & Website

WA OR CA NV ID MT WY UT AZ CO NM ND SD NE KS OK TX MN IA MO AR LA WI IL MI IN KY TN MS AL GA FL OH PA SC NC WV VA NY ME

VTNH

MA CT RI NJ DE MD DC

AK HI

State Mitigation Plans

Final Plan (33)

VW Wins in the States

 All states have received at least two comment letters and many have received 3 and 4 letters depending on number of draft plans  All states with plans except Georgia and Rhode Island include NGVs as eligible for projects  Most state’s VW goals include “Most NOx reduced for funds spent”  “Zero or Near Zero emission” language used instead of just “Zero emission” in many states  70% of the states have made more than 50% of their funding eligible to the private sector  9 states to date have created a form of “parity” among fuels for funding percentages (most states are planning to decide the funding percentages based on the projects proposed)  New AFLEET and HDVEC emissions calculation tools added (NGVA & Argonne Labs)

VW Wins in the States

 “Commercially available” language added  Clarified with EPA and communicated to states that LNG is included  NGVA staff in person meetings in more than 18 states  Regular outreach to additional states and participation on calls  Ongoing creation of presentations and other collateral to support NGVA VW State Plan recommendations and Grant Program tracking – Provided 4 general NGVA VW Workshops and multiple organization specific VW Overviews – Presented at multiple conferences and NGVA HHP Workshop – Added VW Trust Action Center to website and regularly provide updates  Ongoing participation with U.S. DOE, Clean Cities, NASEO and other groups on VW topics

Regulatory Successes, Challenges, Actions

• Buy America Waivers
• CARB Low Emission Vehicle Standards
• Motor fuel taxes point of tax
• Utility demand charges for electricity
• Weight Allowance Enforcement

Priorities for 2019

• VW settlement – continue to influence State Beneficiary Mitigation Plans and

support the identification of projects for submission

• Lead and provide support to NGVA teams in states for 2018 policy
• Advocate in key states for ongoing NGV policy pursuit and protection

– Volkswagen Environmental Mitigation Trust Funding NGV Projects – NGV and station purchase grants and/or tax incentives – Incremental Weight Exemption – Taxation and fees issues – Incremental Sales Tax Exemption – AFV data capture (numbers, details, fuel volumes) – Demand charge incentive – Monitor key Issues (Protect Existing Incentives; Emissions Calculation Tools - accuracy)

• Push to change the narrative to: NGVs are sustainable, responsible and available NOW!

2019 Region/State Legislative & VW Planning

Northeast (NE) – Brett Barry, Barry Carr, Nick D’Andrea CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT, WV, DC Southeast (SE) – Brett Barry, Nick D’Andrea FL, GA, KY, NC, SC, TN, VA Midwest (MW) – Ray Drake, Ryan Kenny IA, IN, IL, KS, MI, MN, MO, NE, OH, SD, WI Gulf/South (GS) – Danny Smith, Dennis Foose AL, AR, LA, MS, NM, OK, TX Rocky Mountain (RM) – Scott “Hutch” Hutchings, TBD CO, ID, MT, ND, UT, WY West Coast (WC) – Todd Campbell, Jared Liu-Klein AK, AZ, CA, HI, NV, OR, WA

MA Barry Carr MD/DC TBD NJ TBD NY Barry Carr PA Brett Barry FL TBD GA Ian Skelton NC Brett Barry OH Graham Bailey SD Joshua Shields WI Ray Drake MI Rob Bacyinski MN Jen Stokes MO Kimberley Bonhart NE Jill Becker AZ TBD CA Todd Campbell Thomas Lawson SC Brett Barry TN Pat Riley VA TBD IA Brandon Geib IL Ray Drake IN Graham Bailey KS Steven Cowen AL Bob Strickland AR TBD LA TBD UT TBD WY Monica Puente CO Sherrie Merrow ID TBD NM Sherrie Merrow OK Norman Herrera TX Dennis Foose NV TBD OR Connor Reiten WA Connor Reiten Ryan Kenny