T. Boone Pickens: Natural Gas Act Will Pass by Memorial Day by Falana White, AFVi staff
“We have to have an energy plan for America. The security of this is so overpowering that it has to be done. It has to be done now,” said T. Boone Pickens, founder and chairman of BP Capital Management, at the 2009 Alternative Fuels & Vehicles National Conference + Expo (AF&V 2009).
Mr. Pickens has a plan. Since launching and promoting the Pickens Plan, his national energy campaign, eighteen months ago, he has dominated the news in the energy arena. He has accomplished his goal of starting a national conversation on our energy policy and now wants the federal government to bring about change.
That change is coming about through legislation called the Natural Gas Act (HR 1835 and S 1408). This legislation will further the key tenets of the Pickens Plan by:
Extending tax credits for natural gas when used as a transportation fuel.
Providing tax credits to purchase natural gas vehicles with an emphasis on heavy-duty and fleet vehicles.
Extending the tax credit for the installation of natural gas refueling pumps.
creating incentives for OEMs to produce natural gas vehicles
Change may be coming sooner than later. In February 2010, Mr. Pickens told Houston Chronicle that he predicts Congress will pass this legislation by Memorial Day. He’s so confident that he even has a $100 wager on it passing with Jim Cramer of CNBC’s Mad Money with Jim Cramer.
Mr. Pickens has proven himself to be a powerful voice in addressing the twin threats of economic vulnerability and national security. At AF&V 2009, he painted a very sobering picture of America’s future saying that “if we don’t have an energy plan for America and…go forward 10 years…we will now be importing 75% of the oil and we’ll be paying $300 a barrel for it. That’s $2 trillion a year for oil! Well, that isn’t going to work. We can’t afford it, it won’t work. But just in case that’s what we’re left with, we have solved two problems: health care and education. You don’t need to be concerned with them, because you spent all your money on somebody else’s oil… [and] the people we are dependent on are not our friends.”
Cheap oil is to blame, in his opinion, for keeping America dependent on foreign oil. “We’re using 25% of all the oil, with 4% of the population, and this is sobering. We only have 3% of the oil reserves in the world. Three percent and we’re using 25%. We operate like we have oil, because oil’s been cheap,” he said.
On the other hand, he said, “Natural gas is in abundance in America…We’re overwhelmed with gas. We hold the fourth largest in reserves worldwide.”
And natural gas can power a heavy-duty vehicle like an 18-wheeler. At AF&V 2009, he provided this scenario: By converting 350,000 trucks to run on natural gas, the U.S. would reduce our foreign oil use by 5% (the first reduction in over 40 years) and would directly create up to 450,000 jobs.
Now, he’s set his sights higher for the U.S. He wants to get eight million trucks, out of the 250,000 million vehicles, running on natural gas. He told Greentech Media that “eight million is doable.” He believes that it will be so successful it will filter down to eventually include light-duty, because “it’s the best fuel.” He also believes there is a patriotic side to natural gas in “that you’re not going to want to drive a car that’s identified with foreign oil.”
He acknowledges that natural gas may not be the silver bullet solution to America’s foreign oil dependence. He’s for anything domestic. In regards to ethanol he’s said “I used to be very much against it, ethanol, but hell I’d rather have it than foreign oil.” He also sees the potential of battery electric light-duty vehicles, but cautions that we could be in the same dependence predicament if battery manufacturing goes abroad to countries like China. “I don’t know that we’ve helped ourselves much to go from Saudi Arabia for the oil to China for the battery.”
It’s been a long eighteen months since the launch of his Pickens Plan and it has evolved over those months. “The tipping point is here,” Mr. Pickens said. “It comes down to being about America…When we do it, it will mean so much to us economically, one. Two, security-wise, it has to be done. But three, it will be unbelievable, the creditability of America, how it will rise as we solve our own energy problem.”
On the verge of his vision becoming reality with the passing of the Natural Gas Act by Memorial Day, Mr. Pickens will kick off the Alternative Fuels & Vehicles National Conference + Expo 2010 with a Town Hall Meeting on Sunday, May 9, at the Rio All-Suites Hotel in Las Vegas, Nevada.
AFVi Completes Survey of Large
Commercial Fleets by Jackie Lanning, AFVi Director of Market Development and Information
With the goal of better understanding the alternative fuel information needs of companies with large commercial fleets, AFVi completed a telephone survey with 135 companies whose fleets range in size from 70 to 72,000 vehicles. By fleet size, these companies are in the top 10% of all commercial companies in the United States.
“AFVi never stops working hard to be exactly what our motto claims – The Answer Place for Fleets™. Conducting sound market research is vital to staying abreast of our customers’ information needs,” says Annalloyd Thomason, Executive Director of AFVi. Here are some results of our research.
Virtually half of the respondents (49%) have plans to purchase AFVs within the next three years. Not too surprising, the larger the fleet size the more likely a company is to have these plans. Again, not too surprising, those fleets that already have some AFVs are more likely to have additional purchase plans.
Do you plan to purchase any alternative fuel vehicles in the next three years?
When asked how important each of several specific factors are in the decision to purchase an AFV, the most important factor is the ‘availability of the right AFV to meet my fleet’s need,’ with fuel availability coming in a strong second.
How Important Are Each of These Factors in the Decision Process?
(% Responding ‘Very Important’)
Asked what questions fleet managers have when considering an AFV for their fleets, the respondents focus is on whether the AFV will meet the job demand, the initial cost, the cost to operate and fueling availability/infrastructure. And, as to where they look for answers, the number one response by far is the internet.
The answers to these and other questions are helping AFVi with program and product planning for 2010 and beyond. Should you be interested in finding out more about your target market and would like to have AFVi work with you to get the answers you need, please contact us at 702-254-4180.
Pierce Transit, serving Tacoma and the surrounding Pierce County area in Washington, was one of the first public transportation fleets to convert to compressed natural gas (CNG). In 1986, they converted two 1974 GMC buses to run on both diesel and CNG as part of a four year demonstration project. By 2004, the agency’s entire fleet had been converted to CNG and today they operate a fleet of 200 CNG powered transit buses.
Pierce Transit constructed their first fast-fill CNG fueling system in 1992. In response to substantial growth in their CNG transit fleet in 1999 and again in 2004, Pierce Transit expanded its original fast-fill fueling station. A third expansion is proposed to accommodate Pierce Transit’s ultimate goals – to fuel 225 CNG powered transit buses in a bumper-to-bumper sequence during a nighttime fueling window and to increase the average bus driving range by increasing the vehicle fill pressure. These two goals must be met, while at the same time decreasing individual bus fueling time and maintaining system efficiency and reliability.
Doug Dickinson, Pierce Transit’s Construction Projects Assistant Manager, contracted for consulting services for a CNG station optimization study with Natural Gas Vehicle Institute (NGVi), affiliate of Alternative Fuel Vehicle Institute (AFVi), and T. Mitchell Engineers & Associates (TME), an NGVi corporate sponsor. Three main tasks were outlined in Pierce Transit’s Request for Proposal, including:
Evaluate proposal to replace and upgrade existing CNG fueling equipment (proposal received from third party vendor).
Evaluate Pierce Transit’s CNG infrastructure and control system and make recommendations to optimize its fueling operation.
Evaluate Pierce Transit’s CNG station maintenance and operations and make recommendations to improve preventative maintenance, safety and reliability of the station.
Leo Thomason, NGVi Executive Director, and Tom Mitchell of TME conducted a site visit to the Pierce Transit CNG fueling station. The primary purpose of the site visit was to observe the operation of the fueling station and to meet with the staff responsible for the operation and maintenance of the fueling station. They also wanted to determine the overall operating characteristics of the installation and to identify other not-so-obvious problems or issues, as well as other items that might require attention on the basis of code compliance or safety.
Based on the observations made, a review of the technical documentation and transit CNG fuel usage records, the NGVi/TME team was able to make recommendations to improve Pierce Transit’s fueling system operability, reliability and functionality in two deliverable reports of findings. The first report evaluated the proposal and fueling operation optimization. In addition to the first report, the team also provided a “rough cost” estimate of any items not already included in the original third party vendor’s proposal, which included 12 recommended modifications to the proposed expansion. The second report addressed the maintenance and safety procedures.
“Leo and Tom’s thorough evaluation will help Pierce Transit maximize our investment and find efficiencies,” said Mr. Dickinson. “Having a project reviewed with a fresh set of eyes is always a good idea, especially with their expertise and during these tough economic times.”
Click here to learn more about NGVi and how to become a corporate sponsor.
General Motors Commits to Biodiesel From National Biodiesel Board's The Biodiesel Bulletin
General Motors is the latest OEM to show support for a 20 percent blend of biodiesel (B20) in its diesel vehicles. Company officials announced to biodiesel supporters at the National Biodiesel Conference & Expo that its 2011 model year Duramax 6.6L turbo diesel engines will be fully compatible with B20. That covers all 2011 GM heavy-duty products including Chevrolet Silverado, GMC Sierra, Chevrolet Express, and GMC Savana.
GM joins Ford and Chrysler in formalizing its support for B20, providing a big boost to the biodiesel industry. These three companies produce more than 80 percent of the diesel light vehicles sold in North America.
"B20 capability in our new heavy-duty trucks is the latest addition to a growing number of alternate fuel options offered by General Motors," said Mike Robinson, Vice President, Environment, Energy and Safety Policy. "We are seeking different paths to fuel solutions in order to maximize efficiency, reduce emissions and minimize the dependence on petroleum."
The National Biodiesel Board and the National Renewable Energy Laboratory spent more than $10 million to test B20 during the last five years to ensure the fuel's compatibility in new diesel engines and after-treatment technology.
Clean Cities TRS Question of the Month: RFS2 (Part 1 of 2) by The Clean Cities Technical Response Service
Question of the Month: What are the changes to the Renewable Fuel Standard (RFS) that resulted from the recent EPA rulemaking?
Answer: The original RFS program (RFS1) was developed as a result of the Energy Policy Act of 2005, which required that 7.5 billion gallons of renewable fuel be blended into gasoline by 2012. The U.S. Environmental Protection Agency (EPA) was charged with the responsibility of developing and implementing regulations to ensure that this goal was met. Under these EPA regulations, refiners, blenders, and importers of transportation fuel (obligated parties) must meet a certain percentage standard with regard to the amount of renewable fuel blended into the fuel that they produce each year.
The Energy Independence and Security Act (EISA) of 2007 required that EPA revise their regulations, with the overall goal of 36 billion gallons of renewable fuel blended into transportation fuels by 2022. In response to EISA EPA released a new set of regulations on February 3, 2010, commonly referred to as RFS2.
In this Question of the Month, we will provide an overview of the changes made in RFS2. Next month (Part 2 of 2), we will lay out the details regarding one change made as a result of RFS2, specifically the definitions and criteria for renewable fuels and the feedstocks used to produce them (see #4 below).
The recently released regulations made the following changes to RFS1:
Expanded the program beyond gasoline to generally cover all transportation fuels, including diesel fuel intended for use in highway vehicles and engines, and non-road, locomotive, and marine engines.
Incorporated specific annual volume standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel that must be used in transportation fuels.
Set 2010 volume standards for specific categories of renewable fuels (see chart below). Beginning with the 2011 compliance period, EPA will calculate the value of the annual standards and publish these values in the Federal Register by November 30 of the year prior to the compliance period.
Fuel Category
Percentage of Fuel Required to be Renewable
Volume of Renewable Fuel (in billion gallons)
Cellulosic biofuel
0.004%
0.0065
Biomass-based diesel
1.10%
1.15
Total advanced biofuel
0.61%
0.95
Renewable fuel
8.25%
12.95
Note that any renewable fuel that meets the requirement for cellulosic biofuel or biomass-based diesel is also valid for meeting the requirement of advanced biofuel. Furthermore, any biodiesel that meets the requirements of biomass-based diesel will also meet the requirements of advanced biofuels and renewable fuel.
Set new definitions and criteria for both renewable fuels and the feedstocks used to produce them, including new greenhouse gas (GHG) emissions thresholds as determined by lifecycle analysis. In order to qualify for these new volume categories, fuels must demonstrate that they meet certain minimum GHG emissions reduction standards, based on a lifecycle assessment, in comparison to the petroleum fuels they displace.
Expanded the definition of renewable fuels to include electricity and biogas (including propane, landfill gas, manure digester gas, and sewage waste treatment gas) that is produced from renewable biomass and used as a transportation fuel, as long as specific conditions are met or EPA approves the fuel.
Industry News
Keep abreast of all the latest AFV industry news headlines with our timely news delivered each Tuesday and Thursday to your email inbox. Sign-up today.
Stay Connected 24/7
AFVi is now on YouTube! And you can still follow AFVi on Facebook & Twitter for instant updates. Plus, AFVi blogs! Check out Alternative Fuel Views, by Kimberly Taylor.
Green Fuels & Vehicles China 2010
Shanghai, China
April 8-9, 2010 www.greenfuels-vehicles.com
---------------------------------
National Propane Gas Association’s Southeastern Convention & International Propane Expo
Atlanta, Georgia
April 10-12, 2010 www.npgaexpo.com ---------------------------------
2010 NAFA Institute & Expo
Detroit, MI
April 24-27, 2010 www.nafaiande.org ---------------------------------
Alternative Fuels & Vehicles National Conference + Expo 2010
Las Vegas, NV
May 9-12, 2010 www.afv2010.com
Attention Exhibitors:The Expo Hall is almost SOLD OUT and time is running out! Don't miss out on your opportunity to be among the who's-who in the alternative fuel industry. Sign up now before your chance is gone! Take advantage of the April Exhibitor specials:
Maximize your investment by making a splash in the media. Throughout April, exhibitors can purchase both an on-line press kit and AFVi’s press list for $490, a savings of $250. Or, purchase either one at a 20% discount. For more information, contact Kevin Colbert (702-254-4180 or kcolbert@afvi.org.)
Attention Attendees: The Rio All-Suites Hotel rate of $109 per night, plus tax, has been indefinitely extended. Click here to take advantage of it TODAY to save money on your hotel reservations!
AFVi's own Leo Thomason is our resident natural gas expert. With over 20-years of experience, Leo has equipped more than 14,000 employees with the skills they need to safely implement, operate and maintain a NGV fleet. Three courses are currently open for registration, including:
CNG Fueling Stations: A Project Manager’s Guide to Sizing, Design, Specifying, Permitting and Construction
May 9, 2010, Las Vegas, NV
NGV Driver and Mechanic Safety Training
May 25, 2010, Riverside, CA
CNG Fuel System Inspector Training
May 26-27, 2010, Riverside, CA
Click here for course descriptions and registration information.
“We have to have an energy plan for America. The security of this is so overpowering that it has to be done. It has to be done now,” said T. Boone Pickens, founder and chairman of BP Capital Management, at the 2009 Alternative Fuels & Vehicles National Conference + Expo (AF&V 2009). 
Pierce Transit, serving Tacoma and the surrounding Pierce County area in Washington, was one of the first public transportation fleets to convert to compressed natural gas (CNG). In 1986, they converted two 1974 GMC buses to run on both diesel and CNG as part of a four year demonstration project. By 2004, the agency’s entire fleet had been converted to CNG and today they operate a fleet of 200 CNG powered transit buses. 
General Motors is the latest OEM to show support for a 20 percent blend of biodiesel (B20) in its diesel vehicles. Company officials announced to biodiesel supporters at the National Biodiesel Conference & Expo that its 2011 model year Duramax 6.6L turbo diesel engines will be fully compatible with B20. That covers all 2011 GM heavy-duty products including Chevrolet Silverado, GMC Sierra, Chevrolet Express, and GMC Savana.
AFVi's own Leo Thomason is our resident natural gas expert. With over 20-years of experience, Leo has equipped more than 14,000 employees with the skills they need to safely implement, operate and maintain a NGV fleet. Three courses are currently open for registration, including: 
