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AFVConnection eNewsletter - January 2010

AFVi's monthly e-newsletter, AFVConnection

January 2010 - In this Edition

 


Alternative Fuels Now A Certainty
by Albert G. Marquis, Esq.


There was a time when the term “alternative fuels” seemed like a phrase to be uttered in a science fiction movie.  It prompted images of the Jetsons rocketing around in their space car.  But times they are a changing.

At some point in the not too distant future, we will no longer depend on oil to power our vehicles.  In fact, gasoline powered vehicles will become anachronistic relics—like the horse and buggy. 

As detailed in Lester R. Brown’s book, Plan B 3.0:  Mobilizing to Save Civilization, we are quickly approaching a critical point which he calls APO (“After Peak Oil”).  Over the past century, oil supplies have steadily increased to meet growing oil demands.  But oil is a finite resource.  We cannot continue to produce more and more oil indefinitely.  At some point the amount of oil being pumped from the ground will begin to diminish year by year.  But demand will continue to increase.  Price wars will ensue, and the price of a gallon of gasoline will go to $5, then $10 and then more. 

When we will reach APO is a hotly debated question.  Much depends upon the accuracy of various estimates of remaining reserves.  Recent studies have indicated that the reserves reported by Saudi Arabia have been greatly exaggerated, leading some experts to postulate that we may have already passed APO, but simply have not realized it.

Even if we are not there yet, no one can dispute the fact that APO is approaching rapidly and that the world will thereafter change forever.  Those nations that have exercised foresight by developing alternative fuel vehicles and fueling stations will be able to adjust much more quickly to the prices than those who have blithely continued with Plan A (dependency on oil).  We have a choice right now in the United States.  Should we prepare for this now or should we wait and deal with the consequences later? 

A wholly independent reason exists for developing alternative fuels.  The United States imports almost 70% of its oil from overseas.  Most of the billions we pay out every year for foreign oil goes to Arab countries, many of whom use these funds to plot against us.  In other words, we are funding both sides of the war on terror.  How stupid can we be? 

In any event, developing alternative fuels represents a unique opportunity for the United States, even during these recessionary times.  When APO becomes a certainty and the price of oil begins to skyrocket, nations are going to turn to the technological leaders for alternative fuel answers.  If we put our minds to this—if we approach the development of alternative fuel vehicles with the same energy and determination that spurred us to launch the Manhattan Project in order to develop the atomic bomb ahead of the Nazis—we will put people to work and develop technology that we can sell around the world.  Not only that, we will greatly reduce the amount of money we send overseas, and we will be on the path to saving our environment.

“Alternative fuels” is no longer pie in the sky.  It is here now.  It is time for this nation to energize and become the world leaders in alternative fuels. 

Albert G. Marquis is a Partner with the Las Vegas law firm of Marquis & Aurbach. He is the Chairman of the firm’s Energy & Natural Resources Department. Mr. Marquis can be reached at (702) 942-2127 or visit the firm’s web site at www marquisaurbach.com.


Q&A with NGVi's Leo Thomason on CNG Fuel System Inspection

AFVi/NGVi Partnership

Question: What is covered in NGVi’s CNG Fuel System Inspector Training Course? 
Answer: Any compressed natural gas (CNG) fuel system inspection training needs to be comprehensive and cover the entire fuel system, from the vehicle fueling receptacle to at least the outlet of the high-pressure regulator—not just the fuel storage cylinders.  By the end of the training, I especially want the potential inspector to know how to assess CNG fuel system and cylinder damage and determine the necessary steps to either correct the problem or safely dispose of the damaged component, including any damaged cylinders. 

Question: Are there any requirements in place for cylinder inspection or is it just an essential safety practice?
Answer: Of course, NGV safety is the key goal, but inspections are required by the National Highway Transportation Safety Administration (NHTSA) every three years or 36,000 miles, whichever comes first.  Additionally, any NGV accident that occurs at speeds greater than five mph and/or an incident that involves a fire anywhere on the vehicle requires that at least the fuel storage cylinders be inspected.  Inspections are designed to ensure driver safety.  Unknown or undetected damage to cylinders could result in a life-threatening situation.

Question: Who is qualified to inspect CNG fuel storage cylinders? 
Answer: While there is no requirement that cylinder inspectors be certified, they must be trained by a recognized CNG fuel system inspection training provider. Certified inspectors have passed an examination administered by CSA America, Inc. that ensures they understand all of the key elements of the inspection process.
 
Question: What is involved in the inspection? 
Answer: It is an external visual inspection only and the cylinder is not removed from the vehicle.  Inspectors are looking for any physical damage, loose brackets, or deterioration to the external surface of the cylinder including scratches, nicks, dings, chips, abrasion, impact damage or chemical damage.

Question: How long does cylinder inspection take? 
Answer: It depends on the number of cylinders onboard the vehicle and the location of the cylinders.  For example, a transit bus with natural gas fuel storage cylinders located on the roof of the bus under an enclosure has cylinders that are relatively easy to inspect.  Conversely, a pick-up truck with cylinders located underneath and possibly in the bed of the vehicle with shields covering them may take longer.

Question: What equipment is required to conduct a vehicle fuel system safety inspection? 
Answer: There is specialized equipment required to measure the depth and length of any cylinder damage.  The reason this is important is because the depth and length of the damage determines whether the cylinder can be repaired or must be replaced.

Question: When we hear about cylinder ruptures, what’s happening? 
Answer: If a cylinder has ruptured, it is most likely due to external damage that was possibly not observed during inspection and properly addressed or was caused by a cylinder being damaged and the damage going unnoticed either because it wasn’t inspected or the inspector was not properly trained. To inspect cylinders properly, the shields have to be removed, allowing a visual inspection all the way around the cylinder. If the cylinders are located underneath the vehicle, the vehicle must be placed up on a lift. The inspection includes examining each cylinder, cylinder valve, mounting brackets, pressure relief device (PRD) and the PRD vent line. The entire fuel system also must be inspected for external damage. That portion of the inspection includes the fuel lines, regulators, coalescing filters, receptacle and solenoid valves.

Question: What happens if a cylinder is so damaged it must be disposed? 
Answer: The cylinder must be safely defueled and decommissioned according to manufacturers’ specifications or Compressed Gas Association (CGA) guidance documents.

Question: Speaking of manufacturers, do they have any liability in case of cylinder failure?
Answer: Manufacturers provide a warranty for a portion of the useful life of the cylinder.  These warranties generally cover manufacturing defects, but they do not cover road damage or other external damage.

Question: Do vehicle cylinders have a finite useful life? 
Answer: Yes.  For use in the United States vehicle fuel storage cylinders for CNG are manufactured to NHTSA Federal Motor Vehicle Safety Standard (FMVSS) 304 and American National Standard (ANSI) NGV 2.  These cylinders have a useful life of 15, 20 or 25 years from the date of manufacture. Once the cylinder reaches the end of its useful life as stated on the cylinder label, it must be defueled and disposed of in accordance with the cylinder manufacturers’ guidelines or CGA guidance documents.

Question: What is the most cost-effective way to provide for fuel system and cylinder inspection? 
Answer: The best approach for a fleet owner, whenever possible, is to have in-house maintenance technicians trained to visually inspect the entire fuel system including the cylinders.  General visual inspections, which are a cursory inspection of the visible portion of the fuel system and cylinder(s) not covered by shields, should be conducted regularly as part of the vehicle’s routine maintenance schedule.  Any damage observed to a cylinder shield or fuel system component during a general visual inspection should be reported to a trained fuel system inspector for proper evaluation and possible further inspection of the damaged component.


Propane A Good Fueling Option
By Brian Carney, Brand Marketing Manager, ROUSH Performance

Roush Propane VanE-250 & F-250 Propane Powered by RoushRoush Van Fueling with Propane

As an alternative fuel, propane offers a variety of benefits including better emissions, a lower price per gallon than gasoline and a large infrastructure. And now ROUSH is expanding its propane-powered vehicle line-up to include Ford’s E-series vans.

Emissions Benefits
On average, propane fleet vehicles reduce greenhouse gas emissions by 19%, create 20% less nitrogen oxide, up to 60% less carbon monoxide and fewer particulate emissions, compared to conventional gasoline.

Propane's on-site emissions have lower carbon content than gasoline, diesel, heavy fuel oil, and ethanol. Even when upstream emissions – those released as a result of extracting and processing energy – are factored into the equation, propane is still one of the best fuel options from a greenhouse gas (GHG) perspective.

Propane itself is not a direct greenhouse gas when released into the air, according to measurements reported by the Intergovernmental Panel on Climate Change. And, unlike fuels such as natural gas, propane vapor is removed from the atmosphere faster than it takes for it to become well-mixed and impact the global climate.

Fuel Price Variability
Gallon for gallon, prices for propane have consistently been lower than those of gasoline, primarily due to the way propane is refined. Propane occurs naturally during the domestic oil refining and natural gas processing, supplying about 90% of U.S. propane requirements.

Because propane is derived from both crude oil and natural gas, its price tracks the rise and fall of gasoline prices, but on average stays well below the price per gallon. According to published government data, the price of propane per gallon, excluding taxes, averages about 78% of the price of gasoline.

The Federal and State government authorities have established lucrative tax credits, grants, and loan opportunities for taxpayers/consumers in an effort to stimulate the use of propane and other alternative fuels, including a $.50/gallon tax credit that some propane-powered vehicle owners could qualify for.

Fuel Availability
Currently there are over 2,500 public fueling stations throughout the U.S. where a propane-powered vehicle owner could fill-up. A number of resources are available online to help locate the nearest filling station, with one of the best provided by the Department of Energy. http://www.afdc.energy.gov/afdc/locator/stations/

On top of that, UHAUL operates more than 6,000 locations around the country that sell propane and can fill-up a propane-powered vehicle.

And, if a fleet operator decides to convert some or all of their vehicles to run on propane, regional and national propane distributors will come in and (in many cases) install a propane fueling station for free in return for a signed distribution contract. At that point, the fleet operator can qualify for that $.50/gallon tax credit for every gallon they pump. Many propane distributors will sell propane at around $1.45 a gallon today—subtract $.50/gallon from that and you've got a very inexpensive fuel solution that's positioned right at your fleet's home base.

Click here for ROUSH’s vehicle line-up, specifications and purchase information.


AFVi Checks Out the Nissan LEAF
AFVi checks out the Nissan LEAF on its tour stop in Las Vegas on Jan. 6, 2010. Nissan representative, Katie, gives a detailed overview of the vehicle including features, purchase options/possibilities and battery and charging information.

Click here if you can't view the video below.

Click here for pictures.


National Biodiesel Conference a “Must” for Biodiesel Businesses


NBB National Conference 2010Although 2009 made for a very tough year for the biodiesel industry, the EPA has said it plans to release the final rule on the Renewable Fuels Standard (RFS) in late January.  Depending on what the rule says, there is strong potential for it to create close to a one billion gallon market for biodiesel in 2010.  

The RFS is a major theme of the National Biodiesel Conference & Expo, Feb. 4–7 in Grapevine, Texas. 

“We realize during these tough times in the biodiesel business, there are many who think they can’t afford to come to the conference,” said Joe Jobe, CEO of the National Biodiesel Board (NBB).  “But the reality is that anyone who wants to buy or sell biodiesel in 2010 can’t afford to miss it.  Just days after the anticipated final rule, we’ll have someone from EPA at our conference to explain how it is going to work.” 

The NBB has a session on understanding the RFS, and a workshop on the Renewable Identification Number System.  There is also a general session panel planned with all points in the petroleum supply chain to talk about how they plan to buy and distribute almost a billion gallons of biodiesel this year. 

Also, those who attended the conference in 2008 will remember Don Reynolds, who predicted that unemployment would top 10 percent, and that housing market would decline by 25 percent.  This popular economic forecaster will be back to help answer this question: When it comes to the business environment, what is the “new normal?”

Texas is a leading biodiesel state, with more production capacity than any other state.  Joining forces with the Biodiesel Coalition of Texas, several sessions will highlight the Texas industry.

"We are very proud to host the National Biodiesel Conference in the Dallas-Fort Worth area," said Mindy Mize, a Clean Cities Co-Coordinator for DFW.  "We are home to a biodiesel plant and many biodiesel users, including the Cities of Dallas, Irving, and Fort Worth, as well as Denton Public Schools and more.  All of them have a great story to tell and help make our area a national leader in biodiesel."

To facilitate networking and to provide a “free-flow” of discussion around a topic of interest to many biodiesel stakeholders, NBB has added several “conversessions.”   Each session will be moderated by an expert and will include ample time for questions and answers among and between attendees.

The latest in diesel technology again will be displayed in a Diesel Vehicle Showcase, and a Ride-and-Drive for conference attendees. 
The conference will be held at the magnificent Gaylord Texan just minutes from the Dallas-Ft. Worth Airport.  To register and view the conference program, visit www.biodieselconference.org


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AFV Industry Calendar

EDTA Conference & Annual Meeting
Washington, D.V.
January 26-28, 2010
http://electricdrive.org/
---------------------------------
Third International Natural Gas Vehicles Conference
Prague, Czech Republic
February 3-4, 2010
www.cng.cz
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2010 National Biodiesel Conference and Expo
Grapevine, Texas
February 7-10, 2010
www.biodieselconference.org
---------------------------------
Alternative Fuels & Vehicles Conference 2010
Las Vegas, NV
May 9-12, 2010
www.afv2010.com

 


AF&V 2010: One Show. Maximum Value.
Act Now to Save on Your Hotel Reservation!

AF&V 2010 is shaping up to be another sell-out, must-attend conference. Register NOW and save money on hotel reservations. For a limited time, the Rio All-Suite Hotel is offering a reservation fee of $109 per night, plus tax, for all Conference nights - a savings of more than $50/night over the contracted room rate!

Exhibitor Special: Now t hrough January 31, exhibitors receive 5% off the price of the first booth and 10% off additional booths. A two-booth space results in over $500 in savings!

Don't wait and miss out on these great savings for AF&V 2010. For more information, go to www.afv2010.com.


AFVi Marketplace

Upcoming Natural Gas Training

Looking for Natural Gas Training?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. Four courses are currently open for registration, including:

  • NGV Driver and Mechanic Safety Training
    February 9, 2010, Downey, California

  • CNG Fuel System Inspector Training Course
    February 10-11, 2010, Downey, California

  • CNG Fueling Station Operation & Maintenance Certification Course
    March 23-24, 2010, Downey, California

  • CNG Fueling Stations: A Project Manager’s Guide to Sizing, Design, Specifying, Permitting and Construction
    May 9, 2010, Las Vegas, NV

Click here for course descriptions and registration information.