Alternative Fuel Vehicle Overview and Clean Cities Introduction

1
Alternative Fuel Vehicle Overview and Clean
Cities Introduction

• J. David Dunagan
• U.S. Department of Energy
• 2003

2
Program Overview

• The Big Picture
• Role of Clean Cities
• Current Issues in AFVs
• Available Resources

3
The U.S. Accounts for 26 of World Oil
Consumption and 9 of World Oil Production, but
Has Only 2 of World Oil Reserves
4
Transportation Is Almost Entirely Dependent on
Oil. It Accounts for 67 of U.S. Oil Use Now.
This Will Increase Significantly in the Future
Source 1949-1999, EIA, Annual Energy Review
2000-2020, EIA Annual Energy Outlook 2001
5
U.S. Highway Transportation Uses More Oil
Than Is Produced Domestically
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Why Has Petroleum Use Continued to Increase in
Transportation?

• Vehicle Registrations Continue to Increase
• Fuel Economy has Stagnated
• Vehicle Miles Traveled Continue to Increase
• Petroleum Costs Remain Relatively Low

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How do we Curb our Growing Addiction to Imported
Oil?

• Transportation Demand Management (TDM)
• Shared Rides, Public Transit and Telecommuting
• Land Use Planning/New Urbanism
• Improve Fuel Economy
• Technology RD, National Transportation Research
  Center
• Incentives for Advanced Technology Vehicles
• Use Alternative Fuels
• Clean Cities Program
• Incentives/Mandates

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What Are Alternative Fuel Vehicles?

• Cleaner Burning Alternatives to Petroleum
• Natural Gas (CNG/LNG)
• Ethanol (E-85) Methanol
• Electric Vehicles (E/V)
• Biodiesel (B20 B100)
• Propane (LPG)

Gasoline Powered Hybrid Electric Vehicles (HEVs)
Are Not Included
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Epact 1992
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Why Should Your State Embrace Alternative Fuels?

• Local Image
• Environment and Public Health EPA attributes
  increases in asthma cases, premature deaths, lost
  days of work, etc. to air pollution from
  transportation vehicles, costing trillions
• Domestic Production v.s. Trade Deficit U.S. now
  pays over 1 billion per week for imported crude
  oil and petroleum products
• Energy Security/Diversity of Supply

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Drain on Economy

• U.S. Spends gt 1 Bill/week on Imported Oil
• OPEC Supplies About 46 of Imports
• OPEC Supplies About 25 of Total US Energy

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OPEC

• Algeria
• Indonesia
• Iran
• Iraq
• Kuwait
• Libya

• Nigeria
• Qatar
• Saudi Arabia
• United Arab Emirates
• Venezuela

OPECs Price Band Policy has Stabilized
Production and Prices
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Abundance has led to complacency
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OPEC Revenue
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Persian Gulf Capacity
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Factors Affecting Energy Security

• OPEC
• Intentional Supply Disruptions
• Political Instability
• Natural Disasters
• Infrastructure Vulnerability

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Terrorism
Yemen 10.08.2002
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Tankers are Inherently Vulnerable
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What Does Energy Security Mean for U.S.
Transportation?
Diversity of available fuel supplies sufficient
for society to function if petroleum deliveries
were disrupted.
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Alternative Fuels and Improved Fuel Economy Can
Reduce Oil Dependence
combined cars
trucks
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Clean Cities
A voluntary, locally based government/industry
partnership designed to advance alternative fuel
vehicles.
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Why Join Clean Cities?

• Advance Clean Air Objectives
• Economic Development
• Support Regulated Fleets/Legal Compliance
• Grants, Technical Support, Peer to Peer Exchange
• Provide Greater Fuel Choices

Clean Cities Provides a Template for Success
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The Designation Process

• Stakeholders Meetings
• Clean Cities Coordinator
• Program Plan w. Goals, Objective, and Commitments
• Review Process
• Memorandum of Understanding
• Designation Ceremony

Then implementation can succeed
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Clean Cities Program Accomplishments

• About 80 Active Coalitions
• 2 new in 2002
• Central Ohio
• New Hampshire
• April 2003-Middle Georgia CCC
• More than 4,700 stakeholders
• More than 132,000 AFVs
• More than 5,300 refueling stations
• 102 million gallons of petroleumdisplaced per
  year
• 19,000 metric tons of emissions reduced per year

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Clean Cities Goals

• 1 Million AFVs Nationwide by 2010
• 1 Billion Gasoline Gallon Equivalents/Year of
  Alternative Fuel Used Nationwide in AFVs by 2010
• 75 of the Clean Cities Coalitions will be
  Self-Sustaining by 2005

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Growth in AFVs in Clean Cities
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Clean Cities Refueling Stations
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Trends in the Clean Cities in 2002

• More emphasis on Heavy-Duty vehicles
• While the overall growth rate for AFVs was 25
  from 2000-2001, the growth rate for heavy-duty
  AFVs was 40 from 2000-2001.
• Growth in the use of Biodiesel
• 7,000 new biodiesel vehicles, and 81 new
  biodiesel refueling sites were added to Clean
  Cities Coalitions in 2001.
• Of the new AFVs added to Clean Cities in 2001
• 31 were Natural Gas
• 28 were Biodiesel
• 22 were Ethanol
• 12 were Propane
• 7 were Electric

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Niche Market Vehicles are Large Fuel Consumers
Fuel Use per Year for Total Population (million
gal)
Total Population of Vehicles
Vehicle
Transit Buses
50,000
500
School Buses
500,000
824
Average HDVs
3,927,700
17,260
UPS Medium Trucks
57,000
57
Private Fleet Light Trucks
2,330,000
1,255
FFVs using E85
750,000
404
Total Vehicles
7,614,700
20,300
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Niche Markets Have Much Potential
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Clean Cities Coordinators

• Clean Cities Coordinators Work for
• Local, City, State or County Governments 19
• Council of Governments/Planning Organizations 17
• Clean Cities Coalition 17
• Private Industry/Non-Profit Organizations 14
• Local Utility 6
• Transit Agency 2
• University 2
• TOTAL 77

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Federal Tax Incentives

• Deduction for incremental cost up to 2000 in
  2003
• Reduced by 25 in 2004, 50 in 2005, and 75 in
  2006
• E/Vs Tax Credit of 10 on incremental cost up
  to 5000
• OEM Incentives
• TEA-21 Reauthorization/Energy Bill

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Current Issues

• Legislative Uncertainty/National Energy Policy
• Congressional Stalemate
• Deregulation Issues
• 8 HR. Ozone Standard
• EPACT/CAAA
• 1992 Gulf War
• Fuel Use Loopholes
• Original Equipment Manufacturers OEMs
• E/V-1 and other casualties
• Sales Volumes
• Delivery Schedules

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Current Issues
Vs.
Coordinators role is to make Chicken Casserole!
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Current Issues

• Changing Technologies
• ULEVs SULEVs
• Hybrids
• Fuel Cells
• Lead Time to Increase Supplies
• Behavior vs. Technological Fix

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FreedomCAR
Cooperative Automotive ResearchFuel Cell Vehicles
http//www.ott.doe.gov/freedom_car.shtml
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Resources for Stakeholders

• Clean Cities Web Site www.ccities.doe.gov
• The ABCs of AFVs (California Energy Commission)
• http//www.energy.ca.gov/afvs/ABCsintro.html
• Alternative Fuels Data Center
• http//www.afdc.nrel.gov/fleet_provider.html
• Epact Credits and Reporting
• Periodicals and Newsletters
• Guidebook for State and Alternative Fuel Provider
  Fleets
• Alternative Fuel Vehicle Fleet Buyers Guide
• www.fleets.doe.gov

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Resources for Fleet Managers

• http//www.eia.doe.gov/emeu/security
• Center for Urban Transportation Research (CUTR)
  http//www.cutr.eng.usf.edu/
• DOE Transportation Energy Data Book
  http//www-cta.ornl.gov/data/Index.html
• Fuel Cells 2000 http//www.fuelcells.org/
• Center For Excellence in Sustainable Development
  http//www.sustainable.doe.gov/

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Next Steps

• Stakeholders MeetingsContinue Dialog
• Identify a Lead Organization or Individual
• Learn from OthersNetwork
• Decide what is right for your region and go for
  it.
• Contact David Dunagan at 404/562-0561 or email
  david.dunagan_at_ee.doe.gov