WGA TRANSPORTATION FUELS FOR THE FUTURE INITIATIVE Nonconventional Fuels Report Summary

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WGA TRANSPORTATION FUELS FOR THE FUTURE
INITIATIVENon-conventional Fuels Report Summary
Transportation Fuels for the Future
Workshop Denver, CO October 10-12 , 2007

• Yvonne Anderson (representing the Natural Gas and
  Propane team)

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Fuel Potential in the West

• Point 1 Natural gas is a secure, domestic
  resource with 98 of the U.S. supply coming from
  North America and proven domestic reserves
  exceeding 75 years at current production.
• Point 2 Five of the nations largest natural
  gas producing states are in the West (Colo., N.
  Mex., Okla., Texas, Wyo.)
• Point 3 In addition to current conventional
  supplies of natural gas, the U.S. Dept. of Energy
  estimates that the U.S. can feasibly produce 10
  billion gge biomethane annually from landfills,
  animal waste processing, sewage, etc.
• Point 4 Compressed natural gas (CNG), liquefied
  natural gas (LNG), and liquid petroleum gas (LPG
  a product of natural gas processing and oil
  refining) are well-known alternative
  transportation fuels. Natural gas and propane
  vehicle engine and fueling technology is
  developed and in current deployment.

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Unique Challenges

• Challenge 1 Small number of Original Equipment
  Manufacturers vehicles in the North American CNG,
  LNG, and LPG vehicle market
• Challenge 2 EPA emissions certifications are
  very expensive to obtain and preclude wide
  product variety among the small volume
  manufacturers who produce conversion systems.
  Economies of scale are difficult to reach.
• Challenge 3 Fueling infrastructure and
  conversions can be costly. Vehicle deployment
  primarily lies in niche market or return-to-base
  fleets such as taxi cabs, street sweepers,
  transit buses, refuse haulers, school buses,
  delivery vehicles, truck and trailers, and
  airport shuttles.

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Priority Recommendations

• Recommendation 1 Develop and maintain a
  consistent, long-term commitment to the
  development and deployment of alternative
  transportation fuels to achieve acceptance of
  existing and emerging fuel and vehicle
  technologies at both federal and state levels.
• Recommendation 2 Build a secure market for
  natural gas and propane vehicles through revision
  of federal, state, and fuel provider mandates to
  include credits and penalties that will ensure
  fuel use rather than vehicle purchase or lease
  alone.
• Recommendation 3 Develop, refine, and renew
  incentives for vehicle purchase and lease, and
  for infrastructure development for non-mandated
  fleets, non-tax paying entities such as local
  governments, and the general public.
• Recommendation 4 - Incentivize natural gas and
  propane OEM vehicle production, research,
  development and deployment for the North American
  market.

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Key Actionable Recommendations

• Establish state government, public school,
  college and university fleet purchase
  requirements that include fuel consumption and
  emission requirements to promote the adoption of
  alternative fuels and alternative fuel vehicles.
• Develop state grant funds that can be used by
  consumers and private industry seeking to offset
  the costs of adding alternative fuel vehicles
  fleet purchases or constructing alternative
  fueling stations.
• Establish and/or renew state tax incentives for
  individual purchase of alternative fuel vehicles
  and installation of home refueling appliances
• Develop multistate, multifuel, regional corridor
  demonstration projects
• alternative fuels and alternative fuel vehicles
  as used includes natural gas fuels, propane,
  biomethane, ethanol, biodiesel, hydrogen, HEVs,
  PHEVs, CTL, GTL, etc. and any combinations
  thereof.