A Customer Guide to Natural Gas Vehicles & Compressed Natural Gas - ONE Gas

A CUSTOMER GUIDE TO NATURAL GAS VEHICLES AND COMPRESSED NATURAL GAS

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AND ITS DIVISIONS

TABLE OF CONTENTS Introduction

02

Benefits of Compressed Natural Gas (CNG)

04

Debunking the Myths Around Natural Gas Vehicles (NGVs)

07

Natural Gas Vehicles

09

CNG Fueling Stations

11

Available Tools and Resources

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This guide provides an overview of natural gas vehicles, compressed natural gas and the benefits associated with such technology.

ONE Gas: • Makes no warranty or representation, express or implied, with respect

to the accuracy, completeness or usefulness of the information contained within, and • Assumes no liability, including but not limited to liability for damages, arising

or resulting from the use of any information contained in this guide.

An understanding of the applications for natural gas vehicles and compressed natural gas encourages involvement regarding the many facets of the market including the technology, key drivers, economics, and environmental benefits.

01

INTRODUCTION TO NATURAL GAS VEHICLES In addition to warming your home and business, natural gas can fuel your vehicle. In fact, natural gas vehicles (NGVs) are a smart way to save money on fuel costs and reduce emissions. NGVs are considered some of the lowest greenhouse gas-emitting vehicles on the road today. So it’s a great way to help clear the air without having to break the bank.

NGVs are an established technology. The first natural gas vehicle was made in 1930 and since then has become common around the world. There are more than 23 million NGVs on the road today with about 175,000 in the United States.

NGVs use compressed natural gas (CNG), which is natural gas (methane) pressurized up to 3,600 psi. CNG has many benefits that have made it an increasingly attractive alternative to conventional fuels.

Did You Know?

There are more than

23 MILLION NGVs on the road today and about 175,000 in the United States

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

More than

12,000

$144,000 fuel savings

natural gas transit buses

per truck (for anticipated

operate in the U.S.

12-year vehicle life) 1

$120,000 fuel savings per transit bus (for anticipated 15-year vehicle life) 1

More than

150 school districts in

the U.S. are operating about 5,500 About

60% of new refuse

natural gas-powered school busses

trucks on order are NGVs Replacing one traditional diesel-burning heavy-duty truck with one, new ultra-lowNOx natural gas heavy-duty truck is the emissions equivalent of removing 119 In 2019, ONE Gas displaced more than

traditional combustion engine cars from our roadways 2

22.5 MILLION tons of greenhouse gas with the use of our own fleet of NGVs,

More than

which equates to more than

CNG fueling stations

42,000 passenger vehicles

across the country

1,650

being removed from the road Per CNG vehicle 2 NOx is an industry term for the nitrogen oxides that are most relevant for air pollution, namely nitric oxide (NO) and nitrogen dioxide (NO2).

1

03

BENEFITS OF CNG AFFORDABLE Natural gas prices within the U.S. have been historically low over the past few years. Many states have incentives and tax credits available for NGV purchases, conversions or refueling station infrastructure. Low commodity prices and low fuel taxes lead to significant dollar-per-mile cost savings for CNG versus alternative fuel sources like gasoline and diesel.

There are several price advantages when it comes to compressed natural gas.

CNG pricing is less sensitive to changes in the world oil market and provides significant fuel savings year after year. On average, CNG has been priced consistently lower compared to alternative fuels like gasoline and diesel.

DOLLARS PER GASOLINE GALLON EQUIVALENT (GGE)

AVERAGE RETAIL FUEL PRICES IN THE UNITED STATES

Last update: December 2019 Source: U.S. Department of Energy

YEARS

NGVs can have a payback period as short as 18- to 24-months for heavy-duty, high-mileage fleets. Converting large trucking fleets to natural gas can save millions of dollars each year in reduced operating and maintenance costs.

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

CLEAN NGVs are 90% cleaner than the EPA’s current NOx standard and emit up to 21% fewer greenhouse gas (GHG) emissions than comparable gasoline and diesel vehicles. When fueling with renewable natural gas, GHG emissions can be reduced even more — up to 125%.

ABUNDANT Natural gas is an abundant resource across the U.S., and new discoveries and extraction methods have led to a dramatic rise in natural gas production – making America the world’s leading natural gas producer. The Energy Information Administration projects more than an 85-year supply of natural gas in the U.S.

U.S. NATURAL GAS PRODUCTION AND OIL IMPORTS 2000—2035

IMPORTED OIL (PERCENT)

NATURAL GAS PRODUCTION (TRILLION CUBIC FEET)

Source: Energy Information Administration

YEARS

05

DOMESTIC Natural gas is domestically produced, so using CNG as a transportation fuel can help reduce our dependence on foreign imports. Almost all (97%) of natural gas consumed domestically is from U.S. sources. When you include Canada and Mexico, the number increases to 99.7%.

Did You Know?

74% of heavy-duty trucks

are not certified to latest NOx emission standards

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

DEBUNKING THE MYTHS AROUND NATURAL GAS VEHICLES When you adopt a fuel technology like CNG, it’s natural to have concerns and hesitations. Here’s some truth around the more popular natural gas vehicle myths.

MYTH

01

THERE ARE NOT MANY CNG STATIONS AVAILABLE. There are more than 1,650 CNG stations across the U.S. serving approximately 175,000 natural gas vehicles, spanning all weight classes and vehicle applications. Kansas, Oklahoma and Texas have dozens of public and private CNG stations.

MYTH

02

NATURAL GAS VEHICLES ARE NOT SAFE. NGVs have an excellent safety record for two primary reasons: the properties of the fuel itself and the integrity of the natural gas vehicle and its fuel delivery system (i.e., storage containers or fuel tanks, fuel lines, valves and pressure relief devices). Unlike liquid fuels, which will pool on the ground during a leak, natural gas is lighter than air and dissipates. The ignition temperature of natural gas is nearly twice that of gasoline, meaning it is less likely to burn than gasoline.

MYTH

03

NATURAL GAS VEHICLES ARE MAINLY USED AS PASSENGER VEHICLES. NGVs are great for every vehicle class and application. High mileage, centrally-fueled fleets that operate within a limited area can see the most benefits of using natural gas vehicles.

07

MYTH

04

NATURAL GAS IS NOT GOOD FOR MY ENGINE. Natural gas has a higher octane rating than premium gasoline, which results in overall improved vehicle performance, a quieter engine and a more complete combustion compared to gas or diesel fuel. CNG contains no additives and burns cleanly, so there are no by-products of combustion. This helps your engine perform better, your spark plugs last longer and your oil stay cleaner longer. This all contributes to the lower maintenance costs, which is a benefit to using NGVs.

MYTH

05

NATURAL GAS VEHICLES ARE EXPENSIVE. The upfront cost of NGVs can be higher than traditional gasoline vehicles. However, many states offer incentives and tax credits for the purchase of a natural gas vehicle or refueling station that can help offset the initial expense. You’ll achieve long-term savings through lower fuel and maintenance costs by converting to CNG.

How green can your fleet be?

Calculate the emissions reduction potential of your fleet. https://www.cleanenergyfuels.com/emissions-calculator

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

NATURAL GAS VEHICLES TYPES OF VEHICLES NGVs are road-tested and ready to deploy. They’re available in every vehicle class and application.

LIGHT-DUTY

MEDIUM-DUTY

HEAVY-DUTY

0 – 14,000 lbs Class 1, 2, 3

14,001 lbs – 26,000 lbs Class 4, 5, 6

> 26,001 lbs Class 7 and 8

taxi

Did You Know?

Medium-duty and heavy-duty gasoline-powered vehicles are the number one source of smog.

09

TYPES OF FUEL SYSTEMS NGVs operate in a manner that is very similar to gasoline or diesel engines.

There are three types of fuel systems for NGVs:

Dedicated • Vehicle runs only on one fuel source – compressed or liquified natural gas.

Bi-Fuel • Vehicle has one internal combustion engine with two separate fueling systems

that allow it to run on natural gas or gasoline. The engine can only run on one fuel at a time.

Dual-Fuel • Vehicle has a fuel system that runs on natural gas and diesel blend.

• Traditionally limited to heavy-duty vehicles.

Light-duty vehicles are typically equipped with dedicated or bi-fuel systems, while heavy-duty vehicles use dedicated or dual-fuel systems.

PURCHASING AN NGV Some NGVs are available for purchase directly from a manufacturer. Existing gasoline or diesel vehicles can also be converted to dedicated natural gas, bifuel or dual-fuel by a retrofitter. If you’re planning to order a natural gas vehicle and equipment, be sure it complies with the U.S. Environmental Protection Agency’s emissions certification requirements and the fuel containers comply with the U.S. Department of Transportation safety requirements.

For a list of available manufacturers or retrofitters*, visit: www.ngvamerica.org/vehicles/availability

*ONE Gas does not endorse any particular product, manufacturer or distributor and encourages customers to check contractor references and do independent research before moving forward with any project.

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

CNG FUELING STATIONS TYPES OF FUELING STATIONS Fast-fill Fast-fill CNG stations are best suited for retail situations, where vehicles need to fill up quickly and on demand. These stations receive fuel from a local utility line at a lower pressure and then use an onsite compressor – or series of compressors – to compress the gas to a higher pressure. Once compressed, the CNG is stored in adjacent tanks for a quick fill-up.

The stations come in a variety of sizes depending on fueling rates, arrival patterns and the size of vehicles regularly served. Stations are designed to consider redundancy and frequency needs at peak refueling hours through the installation of multiple compressors. Filling time at a fast-fill dispenser is equivalent to a typical gas or diesel pump, depending on tank size.

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Time-fill Time-fill CNG stations are ideal for fleet vehicles with large tanks that return to a central location for an extended period of time, such as overnight. At a time-fill station, CNG is delivered by the local utility line to a compressor onsite. Vehicles are filled directly by the compressor, not from storage vessels, though a storage system is often incorporated into the process to reduce wear and tear on the compressor and aid in topping off the vehicle fuel tank.

Time-fill is a preferred method of refueling refuse trucks, school buses and other fleets with similar refueling requirements. Time-fill stations have significantly lower equipment and installation costs because they do not require storage, priority or sequential refueling components.

These types of stations are generally “behind the fence� operations not open for fueling by the public. Fueling at time-fill dispensers can take anywhere from several minutes to a few hours, depending on facility size and vehicle tank capacity.

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

Who Can Benefit from Their Own CNG Fueling Station?

If you have a large amount of parking at your location, then you might have enough space to house a fueling station on your property. Businesses that often benefit from their own fueling station include: • Universities or school districts • Airports (shuttles, airport operations and forklifts) • Large manufacturers (fleet and forklifts) • Distribution companies (FedEx, UPS, Amazon, etc.)

• Food and beverage distributors • Industrial businesses: Sanitation (refuse) or ready-mix trucks (cement trucks) • Municipal services • Hospitals

ASK A ONE GAS REPRESENTATIVE ABOUT AVAILABLE FEDERAL AND STATE TAX CREDITS!

• Cleaners • Tow trucks

Is Natural Gas A Good Fit For Your Business?

Consider the following questions when determining whether NGVs could benefit your business.

• Do you own fleets of vehicles?

• What is your current transportation fuel?

• Do you have plans to purchase additional vehicles in the next 1-5 years?

• Where is your fuel source located? Do you have a fill station onsite?

• How many miles do each of your fleet vehicles drive each year?

• How much do you spend on fuel each year?

• Do your fleet vehicles have a regular route centralized around a

specific location?

How much money can you save by choosing natural gas vehicles?

Calculate your natural gas savings by visiting:

https://freightliner.com/why-freightliner/natural-gas-calculator

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Fueling Station Locations The number of CNG fueling stations continues to increase in the U.S., with stations now available on most highways and interstates. There are more than 25 public fueling stations within the ONE Gas service area, with hundreds more available through nationwide CNG partners like Clean Energy, Trillum, CNG 4 America and OnCue.

Is a CNG fueling station on your route?

To find an existing CNG fueling station, visit: www.ngvamerica.org/fuel/ngv-station-map

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

AVAILABLE TOOLS AND RESOURCES General Information NGV America: https://www.ngvamerica.org/ Alternative Fuels Data Center: https://afdc.energy.gov/fuels/natural_gas.html U.S. Department of Energy: https://www.energy.gov/natural-gas

Maps NGV America Public Station Map: https://www.ngvamerica.org/fuel/ngv-station-map Alternative Fuel Station Locator: https://www.energy.gov/public-services/vehicles/alternative-fuel-vehicles#/find/ nearest?country=US&fuel=CNG

Calculators Texas Natural Gas Vehicle Alliance Savings Calculator: http://www.texasngvalliance.com/calculator Clean Energy Cost Comparison Calculator: https://www.cleanenergyfuels.com/cost-tool

U.S. Department of Energy Natural Gas Stations Abound On Oklahoma’s Interstate Highway System: https://afdc.energy.gov/case/2671

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Publications: https://afdc.energy.gov/publications/search/category/?tags%5b%5d=naturalgas-vehicles Tools: https://afdc.energy.gov/tools Alternative Fuel Price Report: https://afdc.energy.gov/fuels/prices.html Natural Gas Production vs. U.S. Oil Imports: https://www.energy.gov/maps/natural-gas-production-and-us-oil-imports

Videos Natural Gas Vehicles: https://www.youtube.com/watch?v=XtJRyYhQisw&list=PLTTHf6mU88szjV_ mQlIPu-FZelZzAi8Q9 Natural Gas Fuels School Busses and Refuse Trucks in Tulsa, Oklahoma: https://www.youtube.com/watch?v=5mGk_ky6ASE&list=PLTTHf6mU88szjV_ mQlIPu-FZelZzAi8Q9&index=8&t=0s Compressed Natural Gas Fuel Tank Defueling, Decommissioning and Disposal: https://www.youtube.com/watch?v=vTxQPfsm8n0

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A Customer Guide to Natural Gas Vehicles and Compressed Natural Gas

FOR QUESTIONS OR MORE INFORMATION, PLEASE CONTACT YOUR ONE GAS REPRESENTATIVE.

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Kansas Gas Service | Oklahoma Natural Gas | Texas Gas Service

Revised 05/20