Municipal Gas Authority of Georgia CNG presentation here.

GEORGIA
ALTERNATIVE FUEL
VEHICLE ROADSHOW
Natural Gas Vehicles
A Developing Market
June 17 – 26, 2014
NGV – A Developing Market
AGENDA
Future of the NGV Market –
Natural Gas Supply/Prices
Fleet Development –
Picture of the Southeast
Georgia Municipals –
Fleets & CNG Stations
City of Thomasville CNG Refuse Truck
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
Municipal Gas Authority of Georgia
Producers
Pipelines
78
Member
Cities
Our Mission:
To provide municipalities a reliable,
economical supply of natural gas and
to assist them in developing and
growing their gas systems to optimize
the benefits of public ownership.
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
Future of the NGV Market
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U.S. produces more natural gas than any other Nation
Current U.S. Production = 73 BCF / Day
By 2035 U.S. Production = 100 BCF / Day
U.S. natural gas production is outpacing U.S. consumption
What does this mean
For the NGV Market?
Abundant Domestic Energy Supply
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
Future of the NGV Market
• Abundant Domestic Energy Supply
• Current & Future Price Stability
• Current & Future Cost Savings – Current GGE / DGE
Cost Differential – $1.50 - $2.00 per gallon compared to
diesel/gasoline
Additional NGV Benefits
• Reduced Emissions
• Reduces emissions up to 90% over diesel and gasoline
• Meets EPA 2010 NOx levels without urea injection, etc.
• Reduced Greenhouse Gases
• NGVs emit 20 – 29% less CO2 than diesel and gasoline
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
CNG Fleet Development - In the Southeast
Market Potential
36.1 Billion (B) Gallons / Diesel, 2011, U.S.
1.1 B / Gallons
.6 B / Gallons
.7 B / Gallons
7% of U.S. Diesel Consumption – 3 State Region
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
CNG Fleet Development - In the Southeast
Market Potential
There are 112,349 fleets in the 3-state region which operate
567,867 trucks
State
Alabama
Georgia
South Carolina
Total
Number of Fleets
29,530
66,834
15,985
112,349
Number of Trucks
116,166
387,574
64,127
567,867
There are more than 1,500 fleets in the region that operate 24+
units (good early NGV project targets)
Fleet Size (Number of
Trucks)
24-55 Trucks
56-100 Trucks
101-200 Trucks
200+ Trucks
Total Fleets
Alabama
Georgia
255
109
43
37
444
531
149
83
74
837
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South
Carolina
206
53
27
19
305
Georgia Alternative Fuel Roadshow
June 17-26, 2014
In the Southeast – NGV Projected Growth (26 Fleets
Surveyed)
Cumulative Number of NGVs for Surveyed
Fleets
4,000
3,386
3,500
2,880
3,000
2,421
2,500
2,008
2,000
1,641
1,319
1,500
1,044
1,000
814
500
0
Baseline
2015
2016
2017
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2018
2019
2020
2021
Georgia Alternative Fuel Roadshow
June 17-26, 2014
Fleets Driving CNG Station Development
‫۔‬
Operational and Planned Public Access CNG Stations
Georgia Alternative Fuel Roadshow
June 17-26, 2014
Fleet Case – Market Drivers & Obstacles
Market Drivers
Market Obstacles
- Cost savings (ROI 2-5 YRS)
- Insufficient fueling infrastructure
- Emission benefits (social responsibility)
- Premium cost of vehicles
- Reliable fuel supply
- Vehicle availability, engine gaps
10 Trucks x 200,000 MPY
5 MPG
= 400,000 DGE/YR
Incremental cost of NGV truck $50,000
x 10 vehicles = $500,000
400,000 DGE/YR x $1.50 fuel savings
= $600,000 savings fuel
costs per year
High preference for CNG over LNG
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
Georgia Municipals – Fleets & CNG Stations
CNG Station Map
Total CNG Stations, U.S. – 1,456 (+)
Total CNG Stations, Georgia – 40 (+)
Public Stations – 663
Private Stations – 658
Planned Stations – 135 (+)
Public Stations – 13
Private Stations – 19
Planned Stations – 8 (+)
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Georgia Alternative Fuel Roadshow
June 17-26 2014
Georgia Municipal Gas Systems: Fleets & Stations
Public Access CNG Stations
Operational
• City of Covington – (Green Fuels, Operated by Covington)
• City of Perry – (Operated by AmpTrillium CNG)
• City of Thomasville – (Operated by Thomasville)
Key Drivers
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Municipal fleet fuel savings
Municipal gas system gas sales
Community & economic development
Under Construction – Open 2014
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City of Douglas – (Operated by Douglas)
Early Stages of Planning
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City of Albany
City of Commerce
City of Dublin
City of Hartwell
Private CNG Stations
Operational
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City of Social Circle
City of Sugar Hill
City of Thomson
City of Warner Robins
City of Statesboro
City of Thomasville
City of Toccoa
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Georgia Alternative Fuel Roadshow
June 17-26 2014
Georgia CNG Incentives
State
 HB348 – Signed by Governor Deal – Effective July 1st
 Limited to Medium & Heavy Duty Commercial Vehicles
 $12-20,000 per vehicle, limited to $250k per company
 $2.5 million state cap per year, 2016-17 only
 HB257 – Attempt to establish annual cap of $10 Million – Failed to move
 Low or zero emission vehicle tax credit
 AFV Tax Credit for individuals purchasing a dedicated CNG vehicle (10% up to
$2,500 – Honda Civic)
 Local
 Discounts for fleets based on usage commitments
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Georgia Alternative Fuel Roadshow
June 17-26, 2014
Traditional Financing Structures
• Traditional “non-appropriations” LEASE FINANCING, e.g., GMA or ACCG COPs
programs and ESCO/GEPSC.
• REVENUE BONDS-(sales to the public or as one component of a larger revenue
system).
• BACK DOOR GENERAL OBLIGATION (GO) REVENUE BONDS - through an
intergovernmental contract or intergovernmental contracts (two versions: gov.
customer or true backdoor GO).
• TRADITIONAL GENERAL OBLIGATION BONDS (hell or high water, full tax base
pledged bonds)
• SPECIAL PURPOSE LOCAL OPTION SALES TAX (SPLOST) Bonds.
• Consider TADs and Community Improvement Districts (CIDs).
• Also look to combine with grants and for opportunity to share the benefits of
Federal, State and Local tax and other incentives with private partners.
Georgia Alternative Fuel Roadshow
June 17-26 2014
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Georgia Alternative Fuel Roadshow
June 17-26 2014