considering natural gas vehicles for your fleet? get the facts

considering natural gas vehicles for your fleet? get the facts

taking responsibility At your business, the efficient use of energy brings benefits such as lower bills, improved comfort levels for your customers and employees, and a reduced impact on the environment. Acting together, our individual choices add up for the benefit of our community, our environment and our energy future. That s the power of working together. As your community energy company, we are committed to sharing our experience and energy expertise. You can always count on us for: Answers to your questions about alternative fuel vehicles. Energy information and advice. Help in evaluating vehicle options. Assistance in finding related products.

The more you know, the more you ll like CNG The surge in natural gas production is driving down its cost and building interest in use as a fuel for transportation. Fueling fleets with compressed natural gas (CNG) has many advantages. CNG vehicles: Use a fuel that costs less and reduce our dependence on foreign oil. Perform just like petroleum-fueled vehicles but have lower exhaust emissions. Run quieter than diesel-powered vehicles. Plus the technology has been proven over time. CNG vehicles have been on the road since the 1930s. Thinking about CNG? Consider these questions. How many miles do you rack up? The more you travel, the more you save. Fleets that travel a high number of miles, have planned routes and/or return to a central location at the end of the day gain the most from CNG. Types of fleet operations that benefit from CNG include refuse haulers, transit bus systems and delivery companies. To determine your annual fuel savings and payback, visit mge.com/cng for links to payback calculators. 1

Where do you fill up? There are more than 25 public fueling options in Wisconsin. You ll find links to a CNG station locator and a site that tracks CNG prices at mge.com/cng. Locally, Kwik Trip (south of 18/151 on PB in Verona) and Speedway LCC ( just east of South Towne Drive in Monona) offer CNG fueling options. Fueling time is the same as filling a gasoline or diesel tank. Public fueling stations provide easy access to CNG. You can find an alternative fuel station locator at afdc.energy.gov/locator/ stations. Other fueling operators also are building natural gas fueling stations in the Midwest and other parts of the United States. Some businesses choose to invest in private CNG fueling stations. Fleet vehicles that are parked overnight, like refuse haulers, may use a time-fill station. Vehicles park at the end of the day and fuel overnight. Many options are available and may include a combination of fast-fill and time-fill dispensers. The cost depends on factors such as: How many trucks will be fueled. How fast you want to fuel them. Advanced Disposal s Waunakee facility added a natural gas pumping station to provide onsite fueling for new CNG garbage trucks. You can read more about this installation at mge.com/veolia. Where natural gas lines are located near your facility and what gas pressure they serve. 2

What is a reasonable payback period? The price at the pump for CNG is currently about 50% less than diesel or gasoline. The U.S. Department of Energy (DOE) tracks fuel pricing. Historically, CNG has been about half the price of gasoline and diesel. You can learn more at www.cngprices.com. With diesel prices hovering around $4 per gallon, figuring out fuel savings is the easy part. Determining a return on investment requires fleet managers to consider other factors such as vehicle cost, insurance rates, maintenance costs and whether additional weight from fuel tanks affects payload. For many fleets, fuel savings offset the additional cost of the vehicle in 1½ to 3 years. For help calculating payback, visit the DOE s Alternative Fuels Data Center. Cummins NPower also offers a Value Spec Tool. There are links to both of these sites at mge.com/cng. As gasoline and diesel prices trend upward, alternative fuels like CNG have attracted the attention of fleet managers. 3

Are you interested in alternative fuel vehicles for your fleet? Natural gas is the cleanest burning fossil fuel. CNG vehicles produce up to 30% less greenhouse gas emissions and 60% to 90% less smog-producing pollutants than petroleum-fueled vehicles. Compared to gasoline-fueled vehicles, CNG reduces carbon monoxide by 11%, volatile organic compounds by 55% and nitrogen oxides by 54%. In addition, CNG vehicles produce no evaporative emissions because the fuel systems are completely sealed. Customers and the community will appreciate your commitment to cleaner air. Vehicle emissions contribute to our air quality problems. Clean-burning natural gas reduces emissions and improves air quality. 4

What vehicles are in your fleet? Pickup trucks, passenger cars and/or vans You can purchase or lease new CNG lightduty vehicles from original equipment manufacturers like General Motors, Dodge, Ford and Honda. Each offers bi-fuel, heavyduty pickup trucks. Bi-fuel vehicles have both CNG and gasoline fuel tanks, which extend driving distance. These vehicles run on CNG and automatically switch to gasoline when the CNG tank is empty. The CNG version of the Dodge Ram 2500, for example, travels about 745 miles when both tanks are full. Dedicated vehicles, like the Chevrolet Express Cargo van, run on CNG only. This vehicle has a 15.8 gasoline gallon equivalent tank with a driving range of about 200 miles. Additional tanks can add range. Driving a CNG vehicle feels no different than a gasoline vehicle and performance is comparable in terms of horsepower, torque, towing capability and acceleration. The fuel economy of CNG vehicles is comparable to gasoline-powered vehicles. According to DOE, some natural gas vehicle owners report service lives two to three years longer than gasoline or diesel vehicles. For more information on vehicle availability, visit the DOE s Alternative Fuels Data Center or contact your local dealership. Fuel conversion kits also are available for a variety of vehicles. Make sure the kit installer is qualified and the kit is EPA (Environmental Protection Agency) certified. You may have two separate warranties: one from the vehicle manufacturer and a second from 5

the kit manufacturer. GM and Dodge CNG vehicles, supplied with a CNG fuel system, are covered under the manufacturers warranty. For a list of certified conversion systems, visit www.epa.gov. Maintenance intervals for CNG vehicles are comparable to gasolinepowered cars, trucks and vans. Always refer to the manufacturer s guidelines. Manufacturers also provide recommendations for maintaining CNG fuel tanks. Medium and/or heavy-duty trucks Medium- and heavy-duty CNG vehicles are available from Kenworth, Freightliner, Peterbilt, Navistar-International, Mack, Volvo, Isuzu and others. Engine manufacturers build dedicated (run on natural gas only) CNG engines for a variety of commercial vehicle applications. For example, Cummins Inc. offers an 8.9-liter and 11.9-liter engine with horsepower and torque curves that almost mirror its diesel counterpart. Compared to diesel engines, CNG vehicles are 50% quieter and there is no visible exhaust or odor, benefiting drivers and the community. CNG does not gel like diesel, so it s an excellent choice for cold weather climates. In addition, CNG trucks meet EPA requirements without complex after-treatments. CNG vehicles also are covered under one warranty from the original equipment manufacturer. Remember, you can t travel as far on a tank of CNG as you can on a tank of diesel. The range for a 60 diesel gallon equivalent CNG tank is about 270 miles at 4.5 mpg. You can expect approximately 300 miles on a 60-gallon diesel tank at 5 mpg. Additional fuel storage can extend driving range. 6

For some medium- and heavy-duty vehicles with spark ignition, maintenance costs may be slightly higher. Check with the manufacturer, as not all CNG engines are spark-ignited. Where do you service your vehicles? Many dealerships have technicians trained to work on CNG vehicles. Several medium- and heavy-duty dealerships also have trained service technicians. Businesses that repair or maintain their own natural gas vehicles on-site may need to modify their maintenance facilities to meet National Fire Protection Association (NFPA), National Electric Code (NEC) and related code requirements for natural gas vehicles (such as NFPA 30a and 52, NFPA 70/NEC Article 511 and Commercial Vehicle Enforcement Facilities Guidelines August 2012) that generally address, among other things, ventilation, gas detection, heating, lighting and electric equipment. Because every garage is different, develop a plan and discuss modifications with the local fire authority and experienced, licensed professional engineers and architects who are familiar with the applicable code requirements. The Clean Vehicle Education Foundation has developed guidelines on facility modifications. To obtain a copy of Guideline for Determining the Modifications Required for Adding Compressed Natural Gas and Liquefied Natural Gas Vehicles to Existing Maintenance Facilities, visit www.cleanvehicle.org. 7

Review of CNG basics What is compressed natural gas (CNG)? CNG is natural gas that s been compressed to 3,600 psi. A pipeline supplies the gas to a compressor that s located at a fueling station or business. CNG is measured and sold at the pump in gasoline gallon equivalents, or GGE (the amount of alternative fuel it takes to equal the energy content of one liquid gallon of gasoline). Why fuel with CNG? Low cost: CNG currently costs about 50% less per gallon than gasoline or diesel. Clean air: CNG vehicle emissions are up to 30% lower when compared to gasoline and diesel-powered vehicles. Safe delivery and storage: Natural gas utilities, like MGE, have safely delivered natural gas for years. It s the same fuel that most people use to heat their homes. Natural gas is nontoxic, lighter than air and dissipates rapidly when released. Unlike diesel and gasoline, there s no hazardous material cleanup in the event of a spill or accident. It doesn t pool or contaminate groundwater. Its ignition temperature is higher than gasoline, and it has a very limited range of flammability. CNG fuel tank cylinders are stronger and thicker than diesel or gasoline tanks and manufactured to higher standards. Good for our economy: The United States has the largest natural gas reserves in the world. The abundant supply and domestic production increase our energy independence and support local economies. Political or economic unrest in other parts of the world do not greatly affect the price. Ample supply inventory levels of natural gas are at record levels with estimates of more than a 100-year supply helps keep prices stable. 8

learn more Want to learn more about CNG as a fleet fuel? Call the MGE Business Energy Line at 608-252-7007 or visit mge.com/cng. We help businesses determine if CNG makes sense for their fleets. listening. learning. MGE takes responsibility to provide information and education to serve our customers and stakeholders. We educate customers today to help inform their decision making. We educate tomorrow s stakeholders so they can help plan our energy future. Disclaimer The information in this document is provided as is without any warranty and is intended to be general in nature. The information is not a design/construction specification and is not intended to address any specific safety or operational requirements for a particular facility, or specify the requirements of any applicable federal, state or local code and regulations. Madison Gas and Electric Company, its officers, employees or agents shall not be liable for damages or losses of any kind arising out of or in connection with the use of the information provided herein. GS1807 07/23/2013

Bring MGE into the fleet planning process early on to keep your CNG purchases running smoothly. Working together we can make a difference. Call MGE and ask for a business account manager or visit our website for information. We provide the technical, financial and educational services you need to stay competitive. mge.com/cng 608-252-7222 1-800-245-1125 printed on recycled paper your community energy company