energy, environment, & economics dfw clean cities clean school bus workshop september 13, 2006
TRANSCRIPT
Energy, Environment, & Economics
DFW Clean Cities Clean School Bus Workshop
September 13, 2006
EnergyWe import almost 60% of our crude oil from overseasIn the very words of our President we have become “addicted to oil”There are domestically produced fuels that can be utilized to offset the current import levelsThese fuels support local, state, and USA economy These fuels are available today…
Headlines from the news
“Gasoline Prices Soar”“Citing high earnings, Congress considers passing a tax on ‘windfall’ profits of oil companies”“President calls for a ‘massive increase’ in domestic production of ethanol”
Déjà vu, all over again…
These headlines are all from the
1970’s
Our EnvironmentWhile Air Quality in the USA is getting better, still has much room for improvement Sources such as the American Lung Association, attribute many respiratory illnesses to mobile source pollution caused by vehicle exhaust emissionsDiesel emissions have been targeted by federal agencies. 2007 standards for these vehicles will be extremely tough and certainly more costly to achieveReducing Nitrogen Oxide, Carbon Monoxide and Total Hydrocarbon emissions would be a good thing for all of us
EconomicsGasoline and Diesel prices have risen steadily over the past two years and we recently reached “new heights” at the retail islandSupply and Demand continue to plague the industryDemand for diesel in Europe based on their vehicle consumption will continue to keep USA prices near or above gasoline and at a premium for the foreseeable futureDomestically produced alternative fuels are good for the national, state and local economies
The SolutionImplement a fleet strategy to incorporate the usage of alternative fuels such as propane
These fuels:Are primarily domestic products
Help reduce harmful emissions
Typically more economical
Have incentives supported by the recently passed Energy Bill
Propane 101USA Propane production totals about 1.1 million barrels dailyPropane is a by-product of petroleum refining and natural gas processing 150 USA refineries account for about 45% of total USA Propane production500 USA natural gas processing plants account for the remaining 55% of USA Propane productionPropane pricing is influenced by the following factors:
Crude oil pricing to some degree Natural gas pricing to some degreePropane supply/demand fundamentalsEconomyWeather (particularly in winter)Proximity to supply and related transportation costs
Propane Supply…Not A Problem!
USA Retail Industry8,000 Retail Propane Companies
13,500 Retail Propane Outlets
120,000 Propane Industry Employees
16.7 Million Propane Customers
Transportation / Logistics70,000 Miles of Propane Pipeline
16,000 Propane Railcars
5,000 Propane Transports
36,500 Propane Bobtail Delivery Trucks
7,000 Propane Cylinder Delivery Vehicles
A Few Propane Motor Fuel Users
TXDoT has more than 4000 propane fueled vehicles statewideCity and County fleets, such as Ft. Worth, San Antonio, Bexar CountyVIA Metropolitan Transit - San AntonioSchwan’s Food Delivery FleetSparkletts WaterDallas County ISDNorth Side ISD San Antonio
Costs of Implementation
PropaneComplete Skid Station 2,000 gallon tank - $35,000*Vehicle Conversion – from $4,500 to $10,000 Price per gallon – currently from $1.70 to $1.85 which includes state and federal tax
*Cost are approximations only and can vary with location and options needed
Federal SupportInfrastructure Support - Jan. ‘06 thru Dec. ‘09
30% up to $30K tax credit for propane and E85 station equipment that will be publicly accessibleProvision for non-tax paying entities to pass credit back to taxable entity.
Fuel Use – Oct. ’06 thru Dec. ‘10Propane – VETC of .50 per gallon with a .06 increase in federal highway tax for a net of .44 per gallon tax credit
Federal SupportAlternative Motor Vehicle Credit
Provides a tax credit to the buyer for the purchase of a new dedicated alternative fuel vehicle such as propane
50% of the incremental cost of the vehicle, plus an additional 30% if the vehicle meets certain tighter emission standards
Credits range from $2,500 to $32,000 depending on the size of the vehicle and for non-tax-paying entities, the seller of the vehicle can take the credit
The credit is effective on purchases made after December 31, 2005 and expires December 31, 2010
Our Stations and EquipmentWe have been chosen by NASA, The US Army, many state & city fleets and foreign countries to provide support
The Bexar County Station
Bexar County Multi Fleet Use Facility for Propane & E85
VIA Metro – San Antonio, Texas
LPI – Liquid Propane Injection
About LPIThe LPI system is a dedicated, liquid propane injection system that meets the most stringent emission standards, EPA and CARBThe 1st Engine Family is the GM 8.1 Medium Duty Truck Application done in conjunction with GM, Monroe, and GM Medium Duty Truck Centers in North AmericaThe 8.1 became available in April 2006 and is 2008 EPA Compliant and will be 2010 EPA Compliant during 2007Platform is perfect for delivery vehicle, shuttle bus, school bus and other medium truck applicationsSchool Bus OEM project underway with PERC, Blue Bird, GM and Powertrain IntegrationMore technical details available upon request
EPA Certification
Fuel Injector
Supply Line to Engine
Fuel Rail Assembly
Return Line
Fuel Injector Assembly
Fuel InjectorHarness
LPI – Liquid Propane Injection
Who is Clean Fuel USA?Clean Fuel USA has been providing proven and reliable alternative fuel fueling solutions for customers all over the world for more than 13 years.Design, Engineer and Manufacture high quality, alternative fuel, fueling stations – we don’t simply package other peoples equipment
No middleman means better quality, better service and a better priceProvide Fuel Management Hardware & Software to control data and provide customized fleet reports. This allows managers to know:
Which vehicles did not fuel this morning or fuel irregularlyWhich vehicles are burning inappropriate amounts of fuelHow to optimize vehicle routes and refueling timesWhen vehicles are traveling more distance than scheduled and moreWe have offices in:
Georgetown, TX Celaya, MexicoDetroit, MI Buenos Aires, ArgentinaLake Charles, LA New Delhi, India
Some of Our World-Class PartnersFor more than 100 years, Wayne has been a leading supplier of integrated solutions to the global retail petroleum industry. Wayne has continually been on the forefront of innovative technology, and to this day Wayne fuel dispensers, point-of-sale systems, and after-sale support services continue to revolutionize the industry
Gilbarco is a leading global supplier of fuel dispensing equipment, fully integrated point of sale systems for the global petroleum marketplace. Gilbarco is headquartered in Greensboro, North Carolina with sales, manufacturing, research, development, and service locations in North and South America, Europe, Asia, the Pacific Rim and Australia
Since 1927 Blue Bird Corporation has been known for innovation and customer service. Blue Bird Corporation continues to set industry standards with its innovative design and manufacturing of school buses, commercial buses and motor coaches. More than seventy-five years later, Blue Bird has grown to nearly 3,000 employees and three facilities in two countries.
General Motors Corp., the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 325,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest total in the company’s history. GM’s global headquarters are at the GM Renaissance Center in Detroit.
IMPCO Technologies Inc. manufactures and markets products and systems that allow on-highway and off-highway engines to operate on clean burning, gaseous fuels such as propane and natural gas. Our products, and just as important, our integration expertise, enable Original Equipment Manufacturers (OEMs) to satisfy both customer specifications and government emissions regulations for application in the transportation, industrial and power generation markets.
This is how we can help you!Clean Fuel USA can support your efforts by providing:
Station Design, Specifications and Project ManagementStation Equipment for Fueling with Propane or E85Fleet Management Controls and Data Reporting by VehicleAnnual Fuel Contracts for Propane or E85Fuel Pricing that includes Risk Management to ensure prices are based relative to gasolineLeading Engine System technology for propane fueled vehicles and a Master Dealer network to ensure vehicles have field support that includes parts and serviceFleet Vehicle Purchase Planning based on desired goals to incorporate light and medium duty alt fuel vehicles in your fleet Information and documentation to ensure you receive all available Tax Credits from the recently passed Energy Bill and ensuring the credit can be passed along to an acceptable entity if necessary
Where are we going?
Conclusion & Next Steps
What is your timeline? Is now the right time?How can we help you achieve your goals?Let us become your partner to help you take these critical first steps to save on fuel, acquire cleaner operating vehicles to support federal, state & local environmental goals and move toward increased usage of domestically-produced fuels
Contacts
Clean Fuel USA
116 Halmar Cove
Georgetown TX 78658
512-942-8300 office / 512-942-8311 fax
www.cleanfuelusa.com
Mike Merwarth
512-585-4501 cell