2

Where are we today?

What percent of oil did the U.S. import in April 2011?

– 61% How many barrels of oil does that represent?

– 344,000,000 What percent of the worlds population is the U.S.?

– 4.5% What percent of the worlds oil does the U.S. consume?

– 24%

Does that math work?

3

What did that cost the US?

How much did we spend on foreign oil in April 2011?

– $42,500,000,000

– $1,042,000,000 per day

– $43,417,000 per hour

– $983,000 per minute

– $16,400 per second

4

Source: EIA data for 2010 http://tonto.eia.doe.gov

1/3 OPEC!

80% USA OPEC: Algeria, Angola, Ecuador, Iran,

Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela

Who provides the U.S. with oil?

5

Rising standards of living and industrialization are on the verge of dramatically increasing per capita consumption in key emerging economies

Source: Raymond James & Associates. Courtesy of Chesapeake Energy

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Barr

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/year USA China

India Japan

USA

Japan

China

India

Per Capita Oil Consumption

6

Why Alternative Fuels? - Pop Quiz

Who is the third largest consumer of transportation fuels in the world?– California*

Transportation contributes nearly __% of CA’s GHG emissions*A) 20% B) 30% C) 40%

California’s transportation sector is more than 95 percent dependent on what single, crude, fuel source:– Oil* Will also accept “Petroleum”.

Other Important Facts to Keep in Mind:– The U.S.A. consumes nearly 25% of the world’s petroleum and

maintains only 2 percent of the world’s reserves* – OPEC controls over 65 percent of the world’s oil supplies*

* Source: State Alternative Fuels Plan Committee Report, October 2007

7

98%Supply is fromN. AmericaSource: EIA

NiobraraNiobrara

CodyCody

PierrePierre

MowryMowry

GammonGammon

BakkenBakken

Baxter/MancosBaxter/Mancos

MancosMancos

Barnett/WoodfordBarnett/Woodford

MulkyMulkyNew AlbanyNew Albany

AntrimAntrim

Floyd-NealFloyd-Neal

LewisLewis

Eagle Ford/PearsallEagle Ford/Pearsall

Marcellus

Haynesville

Fayetteville85%Supply from U.S.

U.S. natural gas deposits are far more widespread and larger than U.S. coal deposits

Woodford

Barnett

Natural gas producing stateNon producing state

150+ Year Supply and Growing32 of 50 States Produce Natural Gas

8

Why Natural Gas in U.S.?

Cleaner & Greener

Cleaner & Greener

AmericanAmericanCheaperCheaper

9

Natural Gas is Cheaper

Natural gas historically is $.50 to $1.00 cheaper than gasoline or diesel.

In April 2011, price per gallon nationwide averages were: Gasoline Diesel Natural Gas

$3.69 $4.04 $2.06

SOURCE: Dept of Energy: Clean Cities Alternative Fuel Price Report April 2011

10

Natural Gas Vehicle/Fuel Incentives

Federal Tax Credit/Rebate– $0.50 per GGE

• Expired at end of 2009• Tax extenders bill still in Congress• Reinstatement questionable, but

possible

Alternative Fuel Vehicle Tax Credit

NAT GAS Act & Supporting Legislation– Rebates up to 80% of incremental NGV

cost– Fueling station tax credits– Tax exempt bonds to finance NGV

projects– Tax credits to OEMs for producing NGVs– Passing in some form is probable– Tax credit/rebate could be added

11

Greenhouse Gas Emissions

Greenhouse Gas EmissionsGreenhouse Gas Emissions(in grams CO2e/MJ) (in grams CO2e/MJ)

Data from the California Energy Commission and Used by CARB in Developing the Low Carbon Fuels StandardData from the California Energy Commission and Used by CARB in Developing the Low Carbon Fuels Standard

Greenhouse Gas EmissionsGreenhouse Gas Emissions(in grams CO2e/MJ) (in grams CO2e/MJ)

Data from the California Energy Commission and Used by CARB in Developing the Low Carbon Fuels StandardData from the California Energy Commission and Used by CARB in Developing the Low Carbon Fuels Standard

Heavy duty engines exceeding CARB 2010 NOx and PM standards since 2007

Pipeline CNG and LNG meet State’s Low Carbon Fuel Standard definition of “low carbon fuel”

Natural gas for transportation offers 23% to 80% GHG emission reductions today

12

Full Fuel Cycle Analysis: Well to Wheels (WTW)

Source: Tiax LLC

13

22 Shale Basins in 20 States 118 years of Domestic

Reserves 35% increase in Reserves in

last 2 years

Non-Renewable SourcesNon-Renewable Sources(2,074 TCF)(2,074 TCF)

Non-Renewable SourcesNon-Renewable Sources(2,074 TCF)(2,074 TCF)

Renewable SourcesRenewable Sources(1,750 landfills)(1,750 landfills)

Renewable SourcesRenewable Sources(1,750 landfills)(1,750 landfills)

98% Supplied from the U.S. and Canada

Using Natural Gas to Diversify Fleet Fuels

Dairy Farm Waste Landfill Gas Digester Gas

Natural Gas Vehicle LandscapeNatural Gas Vehicle Landscape

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Av. growth since 2000 = 27%/yr

Average 4,000 new NGVs on the road per day (past 5 years)

Average 8 new NGV fuelling stations per day (past 2 years)

Vehicle growth on par with projections made in 2006, despite recession in 2009

65 million NGVs (approx 9% of current world vehicle fleet size) projected by 2020

Page 15

Boston - August 2010

Global NGV Momentum

16

Natural Gas Vehicles in U.S.

There are about 112,000 NGVs on U.S. roads today and more than 12 million worldwide.

There are about 1,000 NGV fueling stations in the U.S. – and about half of them are open to the public.

In the United States, about 30 different manufacturers produce 100 models of light, medium and heavy-duty vehicles and engines.

Industry data shows that vehicular natural gas nearly doubled between 2003 and 2009. In 2010, natural gas displaced more than 350 million gasoline gallon equivalents each year.

17

NGV Options for all Applications

Light Duty - - Medium Duty - - Heavy DutyLight Duty - - Medium Duty - - Heavy Duty

18

Fleets using Natural Gas in CA

Yellow Cab San Francisco

AT&T

SuperShuttle

UPS

Republic Services

Santa Cruz Transit

SFO, SJC, OAK, SAC

19

NGVs vs Electric

Fleet vs Consumer

Application viability

Product Availability

Power source – well to wheels

Last year, the American Council for an Energy-Efficient Economy (ACEEE) ranked the natural gas-burning Honda Civic GX as the greenest vehicle of 2010. Well, that CNG-fed Civic, which is only available in a handful of states,

has topped the charts yet again.

The Connection to Natural Gas FuelingThe Connection to Natural Gas Fueling

21

Clean Energy Fueling Infrastructure

22

Compressed Natural Gas (CNG) Basics

Light, medium, and medium-heavy duty vehicles

Gas delivered by pipeline to fueling station– Same gas that heats homes & used for cooking

Gas is compressed at the station to 3600 psi for dispensing

Dispensed similar to gasoline

Stored in 1 or more cylinders on vehicle

23

Ideal for heavy duty vehicles– Storage volume is half of CNG– System weight is less than CNG

Pipeline gas cooled to -260F

Produced at LNG plants

Delivered in trailers to fuel stations

Rapid fueling in about 5 minutes

Liquid Natural Gas (LNG) Basics

24

The Clean Energy Solution

Integrated fueling services: Turnkey station engineering/ construction, compressors/equipment, service/support,

grants/finance with fueling contracts

25

Clean Energy Services — Best in Class

26

Clean Energy (CE)

North America’s Largest Provider of Natural Gas for Transportation– Headquartered in Seal Beach, CA– CNG, LNG & BioGas production and services– Over 500 fleets, 20,000 NGVs & 200 stations served

Dallas Clean Energy– Landfill gas recovery and production plant– 35,000 gallons of BioGas gas per day

BAF Technologies www.baftechnologies.com– Ford QVM for light- to medium-duty NGVs– E/F Series vans, buses & trucks, Transit Connect

IMW Compression www.imw.ca– CNG compressors and packaging– Up to 300 horsepower, oil-free compression

NorthStar LNG www.northstarlng.com– LNG stations and maintenance

27

Fueling Services

With more than 14 years’ experience, Clean Energy offers CNG, LNG and Biomethane under short- or long-term fueling contracts.– CNG (compressed natural gas) fueling from pipeline

natural gas or from LCNG supply– LNG (liquefied natural gas) fueling delivered by tanker

trailer for vehicle fueling or industrial use; plants in CA and TX, sourced nationwide

– RNG (renewable natural gas) derived from organic waste streams that can be delivered by pipeline for compression or liquefaction

– Variable- or fixed-rate pricing options

28

Engineering & Construction

With numerous diverse stations built nationwide, Clean Energy provides best-practice approaches to each station project.– Inhouse engineering– Innovative, experienced CNG station design– Licensed in 26 states– Faster to open: standard designs, inhouse execution,

factory-direct equipment sourcing

29

Compressors & Equipment

IMW Industries — With more than 1,200 units in 24 countries, IMW is a global leader in CNG compressor and equipment design, manufacturing and installation.– “Oil Free” compression technology virtually eliminates

fueling system and vehicle maintenance problems– Manufacturing in North America and China– Factory-direct sourcing provides seamless integration

for station needs– Custom configuration ensures optimum

performance and reliability– Lowest life-cycle costs

30

LNG Technology & Construction

Northstar — Having installed 70% of the LNG fueling stations in North America, Northstar is the acknowledged leader in LNG/LCNG technology and construction.– Turnkey provider from design and permitting through

construction and commissioning– Factory-direct, proprietary equipment sourcing and

manufacturing– Low-cost, reliable station operation and maintenance

31

Service & Support

With more than 200 fueling stations monitored nationwide, Clean Energy Sentinel™ Service provides 24/7 monitoring and response.– From time & materials to all-inclusive, fixed costs– Over 150 factory-trained technicians, not outsourced

labor– Remote equipment/station monitoring through two high-

tech operations centers– Multi-million-dollar inventory of critical items– Best value, flexible service-level options and terms

32

Grants & Finance

With more than $250 million secured, Clean Energy obtains valuable public/private financing for stations and fleets. – Grant support at federal, state and local levels

nationwide– Funding for infrastructure construction and vehicle

financing– Clean Energy Leasing subsidiary provides fleet financing

options

33

Vehicles & Conversions

BAF — With more than 12,000 vehicles on the road, technology leader BAF provides qualified and certified conversions in all states.– Only QVM (Qualified Vehicle Modifier) certified by Ford

with full factory warranty– All engine families CARB- or EPA-approved– Chosen by AT&T, Verizon for nationwide CNG van

programs– Service and support provided nationwide– Only vehicle modifier conducting full crash tests on

conversion vehicle types

34

Summary and Discussion

Natural Gas is Today’s Solution to:

– Fuel diversity– Reducing our GHG emissions – Increasing our energy independence– Sheltering fleets from $ ? per gallon

fuel Discussion

– What fuels are you using?– What fleets are perfect for CNG?– What does a station cost?– What type of grants are available?

What Can You Do?

– Demand alternative fuels• From policy makers, vendors, service

providers