Transcript US Inventory - LeanGreenFleet.com

Green Fleet Initiatives
Justin Zohn, Senior Consultant
Havill & Company, Inc.
Green Technology Market Drivers
• Protect the Environment
– Transportation is the fastest-growing source of U.S. GHGs, accounting
for 47% of the net increase in total U.S. emissions since 1990.
• Reduce Oil Imports
– More than half of the oil we use is imported.
• Conserve Resources
– If current rates of oil consumption were to continue, the world’s
remaining resources of conventional oil would be depleted in 40 years.
• Save Money
– A fleet of cars and light trucks that reach 40 mpg will save consumers
$2,500-$5,300 on fuel over the life of the vehicle.
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The Obama Biden comprehensive New
Energy for America Plan
• Create five million new jobs by strategically investing
$150 billion over the next ten years to catalyze private
efforts to build a clean energy future
• Within 10 years save more oil than we currently
import from the Middle East and Venezuela combined
• Reduce greenhouse gas emissions 80% by 2050
• Make our Cars, Trucks and SUV’s Fuel Efficient
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Federal Laws and Incentives
• U.S. Internal Revenue Service (IRS)
– Clean Fuel Tax Deduction
• Federal Tax code provides a deduction to compensate for the
cost of the vehicle components that enable it to use clean fuels
and the costs of storing and dispensing the fuel.
– Plug-in Drive Vehicle Credit
• Federal Tax code provides a deduction to compensate for the
purchase of a plug-in electric vehicle.
– Conversion Kits
• Federal tax code provides a credit equal to 10% of the cost of
converting a vehicle to a qualified plug-in electric vehicle.
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• U.S. Department of Energy (DOE)
– Clean Cities Act
• Coordinates the voluntary efforts of more than 80 coalitions of
locally based government and industry stakeholders that
promote alternative fuels and vehicles, fuel blends, fuel
economy, hybrid vehicles, and idle reduction.
– State Energy Program
• Provides funding to individual states for the implementation of
their comprehensive State Energy Plans.
• Rainbows Time Fill CNG fueling facility. Includes public retail
fast fill station ($150K).
• Biodiesel infrastructure investment ($150K) in Salt Lake Valley
Area for five commercial fleet biodiesel stations.
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• U.S. Department of Transportation (DOT)
– Corporate Average Fuel Economy (CAFE)
• The law sets a target of 35 miles per gallon for the combined fleet
of cars and light trucks by model year 2020.
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• U.S. Environmental Protection Agency (EPA)
– Smartway Transportation
• A voluntary partnership between the EPA and the ground freight
industry designed to reduce greenhouse gases and air pollution
through increased energy efficiency.
– Proposed: American Clean Energy and Security Act
(ACES)
• The program sets an upper limit on nationwide emissions and
then issues allowances or credits, which are rights to emit a
particular amount of greenhouse pollutants.
– This bill has been passed by the House but is currently on
hold in the Senate with no timetable for a vote.
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Conventional vs. Alternative Fuels
U.S. Commercial Fleet Industry Fuel Consumption
(Millions of Gallons)
865
(2%)
Gasoline
24,507
(49%)
24,281
(49%)
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Diesel
Alternative Fuels
Alternative Fuel Consumption
Alternative Fuel Consumption
Biodiesel
1,000,000
900,000
Methanol
800,000
Liquefied Petroleum Gas
(LPG)
Liquefied Natural Gas (LNG)
700,000
600,000
500,000
Hydrogen
400,000
300,000
Ethanol, 85% (E85)
200,000
Electricity
100,000
0
2003
2004
2005
2006
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2007
Compressed Natural Gas
(CNG)
Electric Vehicles
• Pros: Potential for zero emissions, sizeable savings on
fuel and maintenance costs
• Cons: Limited range, significant loss in horsepower, long
charge times, high initial cost
• Suppliers: GM, Nissan, Ford, Chrysler, Freightliner,
Smith Electric Vehicles
• Implementers: PepsiCo, Staples, AT&T, Coca Cola,
Ambius, Edible Arrangements
• US Inventory: As of 2007 there were an estimated
55,730 electric vehicles in use
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Hybrid Electric Vehicles
• Pros: Improved fuel economy, Reduced CO2 emissions
• Cons: Battery cost, initial high cost of vehicle
• Suppliers: Ford, Toyota, Honda, GM, Hyundai
• Implementers: FedEx, UPS, Staples, WalMart, New York
City, Seattle, Washington D.C.
• US Inventory: As of 2007 there were an estimated
333,530 hybrid electric vehicles
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Hybrid Hydraulic Vehicles
• Pros: Requires less maintenance, reduced fuel cost,
reduced emissions, well suited for large vehicles with
start/stop drive patterns
• Cons: High initial vehicle cost
• Suppliers: International w/Eaton drivetrains; Freightliner
w/Parker drive systems
• Implementers: Duke Energy, PG&E, UPS
• US Inventory: The number of vehicles has grown from
200 in 2006 to an expected 5,000 in 2010
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Ethanol (E85)
• Pros: Low emissions, renewable energy source, lowers
maintenance costs
• Cons: Insufficient but growing infrastructure, lower mpg
than gasoline
• Suppliers: Chrysler, Ford, GM, Nissan, Toyota, Isuzu,
Mazda, Mercedes-Benz
• Implementers: State Farm Insurance, GE Healthcare,
Xerox, Enterprise
• US Inventory: There are an estimated 8 million flex fuel
(E85) vehicles
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Biodiesel
• Pros: No engine modification, low emissions,
comparable engine performance, extends engine life,
high flash point safer to transport
• Cons: Not suitable in low temperatures, limited supply,
high level blends can degrade components, shelf-life
may be relatively short before sediment and microbial
growth degrades quality,
• Implementers: Eli Lilly, University of Michigan, Archer
Daniels Midland
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Hydrogen Fuel Cell Vehicles
• Pros: Zero emissions, fuel economy, fuel is produced
domestically from several sources
• Cons: High initial vehicle cost, fuel is expensive, limited
fueling infrastructure
• Suppliers: Nissan, Honda, Chevrolet, Mercedes-Benz
• Implementers: Sacramento Coca Cola Bottling, private
test fleets limited lease basis
• US Inventory: As of 2007, an estimated 220 hydrogen
vehicles were in use
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Natural Gas Vehicles
• Pros: Very low emissions, performance booster in cold
weather, currently natural gas cheaper than diesel
• Cons: High initial vehicle cost, insufficient but growing
infrastructure, miles-per-fill-up is half that of gasoline,
public vs. depot filling options
• Suppliers: Honda only OEM-built CNG-powered
passenger car in U.S., Cummins Westport heavy-truck
engines, retrofit systems available for light trucks & vans
• Implementers: UPS, Los Angeles and Long Beach ports,
Allied Waste, Consolidated Edison, Roche
• US Inventory: Currently there are 120,000 natural gas
vehicles in use
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Propane Vehicles
• Pros: Lower emissions, lower maintenance cost, driving
performance similar to conventional fuels
• Cons: Range slightly less, limited storage time,
expensive storage systems, limited infrastructure
• Suppliers: Roush conversion vehicles, CleanFUEL USA
conversion engine systems
• Implementers: UPS, Schwan’s, Delta Airlines, Fed Ex,
Toshiba
• US Inventory: Currently there are 158,250 propane
vehicles in use
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Cost Per Gasoline Gallon Equivalent (GGE)
Gasoline
Cost per GGE
$2.61
Diesel
$2.45
CNG
Propane
$2.43
$4.16
Ethanol
$3.18
B100
Electric
$3.06
• GGE is the amount of alternative fuel it takes to equal the energy
content (measured in BTUs) of one liquid gallon of gasoline.
• This cost does not account for variances in vehicle fuel efficiency.
*GGE data supplied by Alternative Fuels Data Center
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$0.99
Fueling Infrastructure
• The adoption of alternative fuels is going to be based
largely on the available filling station infrastructure
– Dispersed fleets that must rely on “retail fuel outlets”
are significantly limited in the choice of fuel.
– Domiciled fleets have more options if they choose to
equip their onsite facility with a fueling station.
US Filling Stations by Fuel Type
Gasoline
161,768
Biodiesel
683
Electric
521
Ethanol
2,113
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CNG
LPG
863
2,411
Hydrogen
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Other Green Technologies
• Telematics: GPS technology optimizes logistics and in turn boosts
productivity and reduces fuel and maintenance expenses. Additional
benefits include cost tracking, reduced speeding and decreased
accident occurrence.
– Currently, an estimated 3.6 million devices are used to monitor
fleet vehicle, trailers equipment & mobile workers per C.J.
Driscoll & Assoc. 2009 study
• Motor Pools: Companies such as Zipcar and Car2go provide public
and private motor pools that reduces capital investment and cost of
ownership burden.
– Zipcar also markets their vehicle resource scheduling and tracking
equipment to government and private fleets allegedly saving those
entities hundreds of thousands of dollars annually.
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Fleet Administrator Planning Guide
• Calculate Green House Gas (GHG) emissions from fleet
vehicles.
• Evaluate best practices
– Domiciled Fleets
– Dispersed Fleets
• Develop a GHG emissions reduction plan
– Calculate GHG emissions under best practices
scenario
– Set annual GHG emissions goals based on vehicle
turnover rates
• Annually report emission reductions against plan
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More Information
For more information about Havill’s
upcoming Green Fleet Research visit:
www.LeanGreenFleet.com
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