Blue Springs Energy
provides clean energy
economic development
services, helping to get
local clean energy projects
done by connecting
building and fleet owners
with project resources.
Agenda
•  About Blue Springs Energy
•  Compressed Natural Gas (CNG) Infrastructure
–  Pipeline natural gas
–  Bio methane from landfills or anaerobic digesters
•  Bio CNG aka Renewable Natural Gas (RNG)
–  Landfill or anaerobic digester gas for CNG
applications
•  Natural Gas versus petroleum price forecast (US
DOE Energy Information Administration)
•  NY Counties - Fleet studies summary and lessons
learned
•  CNG Incentives and Grants
About Blue Springs Energy
•  Energy Services for Local Governments
–  Energy Consultant
•  E,g. 1 Livingston County Buildings Technical Analysis
(Lighting, HVAC, Solar)
•  E,g. 2 Niagara County Fleet Technical Analysis
(CNG, Electric, Hybrid)
–  Partner on making community aware of energy
incentives
•  E.g. 1 GreenMonroe.org, etc. websites (54)
•  E,g. 2 Lunch & Learn events
•  Energy Services for Federal, State, and Utility
Incentive Program Administrators
–  Outreach, Education, Technical Assistance
•  E.g. 1 NYSERDA – trained > 2000 people
•  E,g. 2 National Fuel Gas – Rebate technical
assistance and outreach
NY Clean Energy Grant & Incentive
Funding > $1 billion ($1.4B)
NY State
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$653 million - NYSERDA (3/2011 – 3/2012)
$150 million – New York Power Authority (NYPA)
$102 million – Long Island Power Authority (LIPA)
$30 milliion – NYS Environmental Facilities Corporation (EFC)
Green Innovation Grant Program
Millions in annual demand response from NY Independent System
Operator
Electric & Gas Utilities
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> $150 million - Energy Efficiency & Portfolio Standard (EEPS)
Independent Energy Efficiency Program (IEEP) – municipal utility
incentives (e.g. Fairport Electric)
Federal Programs, Grants and Tax Credits
•  Tens – Hundreds of Millions from DOE, EPA, USDA, IRS –
Tax Credits
Alternative Fuel Vehicles
Compressed Natural Gas
(CNG)
Compressed Natural Gas
•  Cost - Ranges from $1.07 - $2.79
per Gasoline Gallon Equivalent (GGE)
•  20% - 30% lower greenhouse gas (GHG) emissions,
•  Lower particulate pollution and carcinogens
•  High octane rating
•  Nontoxic, noncorrosive, and noncarcinogenic
•  Not a threat to soil, surface water, or groundwater
•  Energy Security - Plentiful in U.S.
–  Renewable natural gas from landfills and anaerobic digesters
•  Driving Range
–  Shorter than gasoline (due to tank size - lower energy density)
–  Comparable power and speed
•  Proven and established with 114,000 natural gas vehicles
in U.S. in 2008 (> 10,000 registered in NYS)
–  50% of new refuse vehicles in 2012 CNG
–  40% of new transit buses in 2012 CNG
CNG Filling Station Flow Diagram
Gas Dryer:
removes
moisture
Compressor:
compresses
to 4,500 psi
ASME storage
vessels, stores
gas
Gas Dispenser:
distributes gas
at 3,600 psig
GAS
SUPPLY
• Manual
Regenerative
gas dryer
• Compressor
• Sound / weather
enclosure
• Control panel
• Oil system
• Instrumentation /
valves
• ASME storage
• 5,500 psig max
• 3,600 psig
standard hose
and standard
coupling
The Biogas Resource
(Energy Vision 2012)
Fueling Stations
Public Access
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Utilize an existing public station
Operated by retailer, utility, or fleet
Anchor fleet or pool of multiple fleets
Onsite, Private Access
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Exclusive use by fleets
Time-fill stations always private access
Onsite, Public Access
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Often located outside of restricted areas
Benefit from economy of scale
Promotes public use of NGVs
Must have fast-fill capabilities for public
BioCNG or Renewable
Natural Gas (RNG)
NYS Bio-CNG Sources
•  Current NYS Biogas Sources
–  23 manure/organics-based digesters
•  Dozens of opportunities (new source of biogas)
–  100+ Waste Water Treatment Plant
digesters (unused biogas)
•  Unused biogas and excess digester capacity
–  28 operating LFG energy projects (excess
biogas) – electric contracts expiring
•  Many landfills flaring gas
–  ‘Food waste’ digesters – growing
opportunity
•  Millions of cubic feet of biogas flared
or escapes every year.
Approximately 90% GHG
Reduction vs. Diesel or Gasoline
120
Direct GHG Emissions (gCO2e/MJ): Diesel and Alternative Fuels
100
80
60
40
20
0
-20
-40
Derived from C.A. Resources Board LCFS, 2009/2012.
200 cfm of Biogas at 58% methane =
50-75 TPD food waste
2,400 milking cows
Excess
gas at
hundreds
of landfills;
small
landfills
6,000 finishing hogs
BioCNG Costs
•  Bio-CNG
–  200 cfm, 58% methane
–  Produce ~ 284,000 Diesel Gallon Equivalents (DGEs)
per year
•  900 DGEs/day - enough fuel for ~30 HDVs (or ~50-60 light
duty vehicles)
–  All hard and soft costs for upgrade and fueling
infrastructure - ~$1.8-2.2M
–  Estimated DGE Cost - $1.00 - $1.25 DGE before
“RIN” incentives
•  Produce BioCNG (O&M) - $1.00 DGE
•  With federal ($0.245) and state excise taxes
–  CNG exempt (Reference New York Tax Law 1111
and 1115)
–  With RINS – As low as pennies / DGE (or
even get paid to burn use fuel)
Federal Renewable Fuel
Standard (RFS)
•  Renewable Identification Numbers (RINs)
–  Means to track, register and monetize
environmental attributes of alternative vehicle
fuels
•  2012 BioCNG RINs
–  $0.55 - $1.10 GGE
–  Equates to ~$4-9 per decatherm (mmbtu) of biogas
–  Direct payment – not a tax credit
•  2013
–  High demand for biogas-based RINs
–  Earlier this year trading > $1.40 GGE
•  Currently RFS expires 2022, although Congress
could change prior or extend
16
Landfill Gas Electricity vs. CNG
Production
Summary:
•  CNG EBITDA ~ 5X Electricity Production
•  If….you can use 100% fuel
Example Bio-CNG Projects
“RENEWABLE NATURAL GAS (RNG): The Solution to a Major Transportation Challenge,” Energy Vision, New York, September
2012
None in NY to date. Proposed REDC:
•  2012 Ontario County Landfill (not selected)
•  2013 Chemung County Landfill (awaiting decision)
City of Riverview, Michigan Landfill
(100 cfm LFG = 400 DGEs/day)
Clean World Sacramento Biodigester
and Atlas Disposal
(300 cfm digester biogas = 1,500 DGEs/day)
South San Francisco Transfer Station
Natural Gas versus
Petroleum Fuel Price
Forecast
US DOE Energy Information Administration (EIA)
Energy Forecast through 2035
•  Summary - Federal Government sees price spread between
oil and natural gas slightly widening by 2035
•  Note – CNG price is not as correlated to NG price as gasoline
or diesel are to oil due to electric costs for CNG
NY County CNG Studies
Lessons Learned
“Exploration Studies” of NY
County Fleets
•  Exploration Fleet Study ~ Building Energy Audit
•  Process:
–  Collect fleet data – Itemize all vehicles, annual
mileage, fuel type, fuel usage, fuel cost
–  Identify baseline
•  Total Diesel and gasoline fuel cost
•  Cost to replace each vehicle in fleet with diesel or
gasoline
–  Identify ~ equivalent CNG (and/or other AFV) for each
vehicle in fleet and vehicle cost (OEM or upfit)
–  Calculate versus baseline:
•  Incremental cost by vehicle and in aggregate
•  Fuel cost savings by vehicle and in aggregate
•  Simple payback by vehicle and in aggregate
–  Calculate approximate cost of CNG fuel infrastructure
NY County Explore Studies
•  Last 12 months:
–  Albany County
–  Tioga County
–  Niagara County
–  Rockland County
–  Other local governments and private sector
•  Meant to be low-cost, with sufficient data for
Administration and Legislature decision on
next step such as:
–  Define location
–  Pursue grant funding
–  Site Engineering
–  Etc.
Light Duty Baseline Example
Light Duty CNG Payback Example
Simple Payback Analysis –
Scatter Chart of Vehicles
Lessons Learned
•  High mileage, low-mpg vehicles are the drivers for
infrastructure
–  Transit – Cut fuel bills by 50% or more
–  Even smaller counties that operate Transit fleets can
spend over $1,000,000 annually on fuel
•  County Vehicle mix isn’t optimal if no Transit
–  High-mpg light duty vehicles
•  Sheriff vehicles don’t want to give up trunk (LPG
better fit)
–  Low-mileage Highway vehicles
–  Light/Mid duty pickups are good, but typically not
enough to justify infrastructure investment
•  Multi-municipal (e.g. Towns) and/or private sector
fleets (e.g. Refuse, beer/soda distributors) can help
with demand.
–  Collaboration viewed positively by grant reviewers
2013 Opportunity –
especially where there
lack of infrastructure.
Other CNG Incentives in NYS
•  Federal Tax Credits effective through December 31, 2013:
–  Alternative Fuel Excise Tax Credit:
http://www.afdc.energy.gov/laws/law/US/319 (Public Law 112-240,
Section 412)
•  tax credit in the amount of $0.50 per gallon
–  Alternative Fuel Infrastructure Tax Credit:
http://www.afdc.energy.gov/laws/law/US/10513 (Public Law
112-240, Section 402)
•  tax credit of 30% of the cost, not to exceed $30,000.
•  Genesee Region Clean Communities
–  Up to 75% for vehicle incremental cost (2nd round of funding TBD)
•  NY Regional Economic Development Competition
•  NYSERDA Cleaner Greener Implementation Greenhouse
Gas Reduction
–  $30,000,000/year statewide 2013, 2014, and 2015
•  National Fuel Gas up to $200,000 for infrastructure
•  NYC Truck Voucher Incentive Program (NY-VIP)
–  80% up to $40,000 for Class 3-8 trucks
Contact us to learn more:
Blue Springs Energy
807 Ridge Rd, Suite 210B
Webster, NY
[email protected]
(585) 415-6646
(866) 495-2959