Transcript Slide 1

Public Transit Department
Bus and Fuel Procurement Strategy
AzTA/ADOT Transit Conference
April 2013
Phoenix Public Transit
Department
• Managing department for City transit services
•
•
•
•
•
Local bus routes
Phoenix Dial-A-Ride
RAPID commuter service
Neighborhood circulators
Alternative transportation programs for seniors and
disabled
• Operates 47 out of 100 bus routes in the Valley
• Over 37 million bus passenger boardings annually
• 65% of regional bus boardings
Background
• Current heavy duty transit fleet
• 305 liquefied natural gas (LNG) buses
• 160 ultra-low sulfur (ULSD) diesel buses
• Fleet mix: 65:35 ratio of alternative fuel (LNG) to clean
burning diesel buses
• Origin of Fleet Mix
• Comply with state mandated clean air standards
• Comply with 2003 City Council policy on fuel
diversification
• Mitigate interruptions to fuel supply
• Ensure fuel supply for emergency operations
Phoenix Public Transit
Department
Phoenix Public Transit
Department
• FY2011-12 Fuel Budget
Fuel Type
Gasoline
LNG
Diesel Fuel
Total
FY11-12 Actuals
$
2,215,000
$
5,850,000
$
8,771,000
$
16,836,000
Background
• 240, 40-foot buses eligible for retirement
• Bus is eligible for retirement once Federal interest in asset
is fulfilled: at least 12 years of service or an accumulation
of at least 500,000 miles (FTA Circular 5010.1)
• Fuel considerations
• Identification of transit fuel alternatives
• Procurement of new fuel contract (Exp: June 2013)
Fuel Consultant Study
• Fuel consultant: Gladstein, Neandross & Associates
• Analyzed alternative fuel options for the transit bus fleet
• Assisted the City in developing a long-term fuel strategy
for the transit fleet and future vehicle purchases
• Reviewed alternative fuel technologies:
•
•
•
•
Natural gas
Diesel
Electric
Hybrid technologies
• Some fuel technologies were rejected due to higher
overall costs and limited transit use / range
Fuel Consultant Study
• Alternative Fuels – Natural Gas Overview
• Liquefied Natural Gas
• Natural gas that has been cooled to very low temperatures
(-260˚F) to liquid form
• Trucked to fueling stations in super-cooled state
• Compressed Natural Gas
• Natural gas compressed to increase energy density
• Allows for distribution via pipeline
• Liquefied Compressed Natural Gas
• Natural gas is delivered in super-cooled liquid form;
converted to compressed natural gas at the fueling station
• Allows utilization of existing facilities
Fuel Consultant Findings
• Natural gas buses present the lowest total
cost and greatest savings over the life of
the vehicle as compared to diesel or other
alternative fuels
• Estimated fuel savings of $200K per bus
during its lifecycle
LNG Fuel Considerations
• Liquefied Natural Gas (LNG)
• Has become outdated for purposes of transit vehicle use
• Feedback from transit contractors: difficult to maintain
equipment; obtain parts (longer down times)
• Premium for LNG buses - $90,000 more per bus versus
diesel; $35,000 more than CNG
• Limited specialty fuel equipment suppliers
• Higher maintenance costs for vehicles
• Specialized equipment required for fuel storage,
dispensing, and fueling staff protection
Transit Fuel Comparison
• LNG: Estimated 1,130 LNG transit buses nationwide
•
•
•
•
Over 400 buses are in Phoenix (COP/RPTA Valley Metro)
Facility maintenance costs similar to, but less than CNG
Lower carbon emissions than diesel; more than CNG
$35,000 - $90,000 price premium per vehicle
• CNG: Estimated 14,000 CNG transit buses nationwide
•
•
•
•
Facility maintenance costs similar to, but more than LNG
Lower carbon emissions than diesel and LNG
$35,000 savings per vehicle over LNG bus
Compressed natural gas (CNG) is a clean, domestic, highly costeffective option to other alternative fuels
Transit Fuel Comparison
Bus/Fuel Cost Analysis
Bus Cost
Fuel Economy
(miles/DGE)
Fuel Cost
(per DGE)
Diesel
$436,877
4.01
$3.42
LNG
$524,877
3.05
$1.51
LCNG
$490,915
3.05
$1.59
CNG
$490,915
3.05
$1.31
Diesel hybrid
$636,877
5.01
$3.42
Fuel Technology
DGE = Diesel Gallon Equivalent
Transit Fuel Comparison
Cost savings over a 12-year period associated with replacing
392 buses total (336 40-ft., 56 45-ft.) with selected fuel type
below in lieu of diesel fueled buses
Millions of Dollars Saved
$30
$25
$20
$15
Savings after 12 years
$10
$5
$0
LNG
LCNG
CNG
Consultant Recommendations
• PTD initiate liquefied compressed
natural gas (LCNG) fueling capabilities
at its existing capital transit facilities
because of ease of conversion
• Move to CNG as long-term fuel source
when LNG is no longer necessary for
fueling vehicles
Bus and Fuel Procurement Strategy
• Fueling transition
• Short term: LCNG fueling
• Continue purchase of LNG fuel
• Convert LNG to CNG fuel dispensing utilizing existing infrastructure
• Long term: Pipeline CNG fueling
• Purchase CNG buses
• Utilize existing Valley Metro/RPTA contract – 120 buses
• $61M: 83% federal funds / 17% regional transportation funds
• Savings of $4.2M versus LNG buses
• Future regional procurement for 40’ buses
• Facility Improvements
• Phased LCNG improvements to coincide with bus deliveries
• $4M T2000 funds over next three years
Bus and Fuel Procurement Strategy
• Timeline
• Buses
• Fall 2013: 60 buses
• Spring 2014: 60 buses
• 40 annually thereafter
• LCNG Infrastructure
Location
Design
Construction
Operational
Estimated Costs
West Transit Facility
March 2013
July 2013
December 2013
$1.5M
North Transit Facility
March 2013
October 2013
February 2014
$1.2M
South Transit Facility
May 2013
December 2013
September 2014
$1.3M
LNG to CNG Transition
• Challenges:
• Coordinating delivery of new CNG vehicles with
completion of LCNG upgrades
• Complete conversion to CNG over the next 7-10
years
• Natural gas pipeline availability/capacity at each
transit facility
• Additional capital funding for final CNG
infrastructure
Summary
• Received Phoenix City Council Approval on January 8,
2013 to implement our fuel and bus procurement strategy,
including:
• Transition from liquefied natural gas (LNG) to compressed natural
gas (CNG)
• Purchase 120 forty-foot CNG buses to replace retirement-eligible
LNG buses
• Issuance of an Invitation for Bids (IFB) for the continued delivery
of natural gas for use in transit buses
• Facility improvements at the three transit operating facilities to
provide the necessary fueling infrastructure to accommodate the
transition to CNG buses within Phoenix’s transit fleet
Phoenix Public Transit
Department
Phoenix Public Transit
Department
Questions?
• Thank you!