Session vii r dovey

Energy Interdependence in the Western Hemisphere November 5, 2015

New Energy Opportunities, Uses, and Risk: Natural Gas as a Transportation Fuel Richard Dovey President Atlantic County Utilities Authority

Atlantic County Utilities Authority (ACUA) •

Public agency that provides environmental and waste management services to Atlantic County and southern New Jersey

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Operates Wastewater and Solid Waste Management Systems

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$60 million in annual revenue

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250 employees www.acua.com

About ACUA The ACUA Mission Statement. . .

The Atlantic County Utilities Authority is responsible for enhancing the quality of life through the protection of waters and lands from pollution by providing responsible waste management services. The Authority is an environmental leader and will continue to use new technologies, innovations and employee ideas to provide the highest quality and most cost effective environmental services. . . .makes the Authority a natural facilitator for renewable energy projects

www.acua.com

ACUA Facilities Regional Solid Waste System • Recycling, MSW & Vegetative Waste Collection •

Transfer Station & Sanitary Landfill

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Single Stream Recycling Center

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Vegetative Waste Composting Center

• Landfill Gas to Energy Project • CNG Fueling Station

www.acua.com

ACUA Facilities Regional Wastewater System • 40 MGD Activated Sludge Treatment Plant • 20 Regional Pumping Stations • 14 Member Municipalities • Ocean Outfall

www.acua.com

Green Initiatives • • • • • • • • •

7.5 megawatt wind farm 500 kilowatt solar generation facility 5.4 megawatt landfill gas to electric facility Biodiesel- B5 blend powers the ACUA diesel fleet Compressed Natural Gas Station and vehicles Hybrid & electric vehicles Geothermal heating and cooling Energy efficiency Water conservation www.acua.com

ACUA’s Renewable Energy Portfolio 5.4 MW Landfill gas project  Power purchase agreement and revenue sharing have provided over $6.4 million in savings to date 7.5 MW Wind Farm  Power purchase agreement and lease payments have provided over $4.5 million in savings to date 500 kW Solar PV system  Total Savings to Date over $2.8 million www.acua.com

Alternative Fuel Vehicles: Hybrid & Electric ACUA light duty fleet includes: •

Ford Escape Hybrids (6)

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Chevy Silverado Hybrid trucks (5)

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Ford Ranger EV

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Low speed GEM EV

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Nissan Leaf

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Toyota Prius Plug-In

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Ford Fusion Plug-In (2)

www.acua.com

Compressed Natural Gas (CNG) Project

2005 Diesel Retrofit Law • Private and publicly owned solid waste collection vehicles under public contract were mandated to have a plan to reach NJDEP emission reduction levels

by June 2008 • School buses, public transit vehicles, private commercial buses, and publicly owned heavy duty and off-road vehicles all most comply by Sept 2011

www.acua.com

BART: Best Available Retrofit Technology •

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BART 1 > 25% PM Reduction BART 2 > 50% PM Reduction BART 3 > 85% PM Reduction Most diesel vehicles before 2008 have no emission control technology B20 only provides 12% reduction B100 only provides 47% reduction CNG ~ 95% PM Reduction www.acua.com

CNG Project Timeline • 2007: SWANA Bio-Energy Conference • 2008: ACUA Implements Single Stream Recycling

• Nov 2008: CNG Station Bids Rejected • Nov 2009: CNG Station Bid Awarded & CNG Trucks (five) Purchase Contract Awarded • Nov 2010: CNG Station Opens & CNG Trucks (10) Purchase Contract Awarded • 2015: ACUA has 22 vehicles in its CNG fleet, including 2 pickups, a roll off truck and street sweeper www.acua.com

Project Funding • NJ Clean Cities Coalition • U.S. Department of Energy Clean Cities Program • 2010 ARRA Funding Program

www.acua.com

Project Funding • NJCCC Project Awarded $14.9 million

• ACUA Awarded $1.9 million: – $1.3 million for fueling station – $0.6 million for vehicles (incremental cost) – Project Amendment: $75,000 (50% share) for required vehicle maintenance center upgrades www.acua.com

CNG Basics • Approx. 15 million CNG vehicles on the road today, only 150,000 are in the U.S. • Most CNG vehicles in U.S. today are operated by fleets. Public transportation, solid waste hauling, and delivery fleets make up the vast majority.

• There are over 800 public CNG fueling stations in U.S., with the largest concentrations in California, Utah, Oklahoma, and Texas. www.acua.com

CNG Basics • Approx. 10% of refuse vehicles are CNG, but half of new vehicles purchased today are CNG (SWANA) • Since 2012 over 38,000 new vehicles and 300 new stations have been added in the U.S., an increase of 33% and 60% respectively.

• Prominent brands using CNG include UPS, Wal-Mart, Management, Anheuser-Busch, , Lowe’s, Proctor & Gamble, Wawa, Coca-Cola, Frito-Lay, AT&T, Verizon, Staples www.acua.com

What’s Next?

Renewable Natural Gas / Biomethane: • Created from organic waste in farms or landfills • Collection and clean up of gas reduces emissions from waste sources and reduces use of fossil fuels • Creates a “closed loop” fuel source; trucks are powered by gas created from the waste they collect!

• Meets federal Renewable Fuel Standard for AdvancedCellulosic Biofuels www.acua.com

CNG Benefits: Cleaner Emission reductions compared to petroleum fuels: • Carbon dioxide (CO2) emissions by 20% to 30% • Carbon monoxide (CO) emissions up to 75% • Nitrogen oxide (NOx) emissions by approximately 50%

• Particle matter (PM) emissions up to 95% • Volatile organic compound (VOCs) emissions by 55%

www.acua.com

CNG Benefits: Price Stability U.S. Average Retail Fuel Prices Source: USDOE Alternative Fuel Data Center www.afdc.energy.gov/data/

Gasoline $4.50 $4.00 $3.50

Cost per GGE

$3.00 $2.50 $2.00 $1.50

$1.00 $0.50 $0.00

Diesel

CNG

CNG Benefits: Price Stability ACUA CNG Station Price Comparison *Source: EIA Monthly Central Atlantic Fuel Prices (http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_r1y_m.htm)

ACUA CNG Rate

$4.50 $4.00 $3.50

PRICE PER GGE

$3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00

Retail CNG Rate

ACUA Diesel Rate

ACUA Gasoline Rate

Retail Diesel Rate*

Retail Gasoline Rate*

CNG Benefits: Energy Security A Domestic Fuel Source • In 2013, the U.S. imported about 33% of the petroleum it consumed, and transportation accounted for more than 70% • Over 90% of natural gas used is produced domestically www.acua.com

ACUA CNG Accomplishments ACUA CNG STATION FUEL DISPENSED ACUA CNG Use (GGE)

Customer CNG Use (GGE)

500,000 450,000

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2010 TOTAL

2011 TOTAL

2012 TOTAL

2013 TOTAL

2014 TOTAL

2015 TOTAL

Approx. 1.31 million gallons displaced

ACUA CNG Accomplishments ACUA Savings & Revenue from CNG ACUA Fuel Savings

ACUA Sales Revenue

CNG Tax Credit

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0 2010 TOTAL

2011 TOTAL

2012 TOTAL

2013 TOTAL

2014 TOTAL

Over $1.5 million net benefit

2015 TOTAL

ACUA CNG Accomplishments Greenhouse Gas Reductions from CNG Station (Metric Tons of CO2e) ACUA Emissions Reductions

Customer Emissions Reductions

1,400 1,200 1,000 800 600 400 200 0 2010 TOTAL

2011 TOTAL

2012 TOTAL

2013 TOTAL

2014 TOTAL

2015 TOTAL

2,735+ metric tons of CO2 reduction

CNG: Cleaner, Cheaper, Better!

www.acua.com

Contact Information Richard Dovey

President Atlantic County Utilities Authority 609 272-6950

rdovey@acua.com www.acua.com