Compressed Natural Gas.

1. Economic Feasibility of CNG
Fueled Vehicles for a Small City
Bruce Clark, P.E.
July, 2014.

2. Outline
• Scope of Study
• City Background
• Background NGV’s
• Analysis & Conclusions
• Funding
• Q&A

3. Introduction
• Feasibility study conducted in 2013 as part of major
Public Works & Solid Waste facilities upgrade.
• SCS worked with the City’s Environmental Services
Division.
Household Garbage Bagged &
Yard Wastes
Loose Yard / Used
Appliances
2 per week – Rear loaders 1 per week 1 per week
Waste Pick-Up Snapshot

4. Background
City of Edgewater, FL
• Population 21,000
• On the famous Indian River Lagoon
• Located in Volusia County
Edgewater

5. Industry Snapshot – Why CNG?
• Availability of low-cost natural gas
• Large price increases in diesel fuel
• Major advancements in CNG engines - Several
major companies make CNG-ready engines for
light duty trucks, vans, buses, and heavy trucks
CNG Truck Growth

6. Time-Fill CNG Station
(vehicle parked overnight)

7. Quick-Fill CNG Stations
(vehicles fuel in 8 to 10 minutes)
Clearwater Natural Gas
(used by City of Clearwater Sanitation) Tampa International Airport

8. Quick-Fill CNG Stations
Compressor Station
CNG Storage Vessels

9. Card Readers – Public and Municipal

10. Comparison of CNG to Diesel
Fueled Fleets
Advantages Disadvantages
Lower fuel costs compared to diesel on
an equivalent energy basis
Increased capital costs for fueling station
and maintenance facilities and fleet
vehicles.
Reduced reliance on imported fossil fuels. Increased O&M costs for fill station
operation.
Less emissions / odors compared to
diesel fuel vehicles.
Slight reduced fuel economy
Severe cold weather operation More frequent routine engine
maintenance
Lower engine noise – better public
relations
Increased vehicle weight
Engine durability & ease of servicing
compared to diesel
Initial capital investment for fleet
conversion
Refuse truck premium $30,000 - 50,000

11. Decision Criteria
• Existing or new fueling infrastructure will be
used and, if a new station is needed,
• Station located on site or offsite,
• What type of station(s) is needed,
• What development, ownership and operations
models best suit the agency’s criteria, and
• Operational characteristics of the fleet that
will affect all of the above.

12. Fuel Station Cost Factors
• Number of vehicles, total daily fuel volume and maximum hourly
rate.
• Whether time-fill, fast-fill or both capabilities are needed.
• Level of remote station equipment monitoring and diagnostics.
• Type of dispenser including flow meter accuracy, data collection
and payment processing needs
• Real estate space required.
• Availability, quality and pressure of gas service.
• Availability of back-up fueling or, the required system redundancy.
• Traffic access/road improvements, sound attenuation.

13. Modifications to
Existing Maintenance Facilities
Factors include;
• Major or minor repair /maintenance facility, types of fuels
Modification Elements
• Gas detection system may be required.
• Overall ventilation may have to be increased. Code
requires 5 ACH (12 ft. ceiling).
• Ventilation rate within 18 inches of ceiling subject to
electrical classification.
• Fire-rated wall separation for dual type (minor/major)
• Written safety procedures and employee training

14. Vehicle Summary
Vehicle Type
No. of
Vehicles
Annual Mileage
(miles per
vehicle)
Annual Fuel Use
(gals. per
vehicle)
Gas Fuel
Cost ($/gal.)
Diesel Fuel
Cost ($/gal.)
Annual Fuel Cost
($)
Small P.U. Truck 8 10,000 970 3.10 3,007
Med. P.U. Truck 15 15,000 1,500 3.10 4,650
Stake Truck 4 4,000 1,000 3.50 3,500
Rear Loaders 5 10,000 2,800 3.50 9,800
Rear Loaders 5 8,000 2,000 3.50 7,000
Grapple Truck 2 18,000 3,500 3.50 12,250
Semi Tractors 2 13,000 3,000 3.50 10,500
Semi tractors
(standby)
2 4,000 1,000 3.50
3,500
Totals 39,000
Source: City of Edgewater

15. Diesel & CNG Price Projections
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
$8.00
$8.50
$9.00
$9.50
$10.00
$10.50
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$/DGE
Year
CNG-2%
CNG-3%
Diesel-3%
Diesel-5%
Diesel-7%
Source: U.S. Energy Information Administration (EIA)

16. Capital Purchase Breakout
Item Cost
New CNG Vehicles (5 rear loader refuse,
2 grapple, and 2 semi-tractors)
$273,000 *
CNG Fueling Station $750,000
CNG Supply Pipeline 100,000
* Average of the different vehicles

17. Economic Summary
Factor Diesel CNG
Fuel Usage (DGE/Yr.) 39,000 41,935
Fuel Costs ($/DGE) 3.60 0.51
Capital Purchases ($) 2,100,000 3,300,000
Fuel Costs ($/ Yr.) 140,297 21,179
Fuel Station O&M ($/Yr.) 5,000 49,000*
*electrical demand (if not CNG fueled ), compressor overhaul
and other systems maintenance

18. Results & Recommendation
Net Savings ($/ Yr.) 75,000
Simple Payback on Capital Investment 14.1 years
Simple Payback after CNG station is paid
for (i.e. vehicles)
5.4 years
Open up the CNG fueling facility to other paying customers, including other City
fleet vehicles, vehicles from other cities and/or counties, private companies, and
other governmental agencies

19. Natural Gas Fuel Fleet Vehicle Rebate Program
Rule 50-4.001, Florida Administrative Code
• An applicant is eligible to receive a maximum rebate
of $25,000 per purchased, leased, or converted
vehicle, not to exceed 50 percent of eligible costs.
• Each applicant may receive up to a total of $250,000
per fiscal year on a first come, first serve basis.
• Applications accepted starting July 1.

20. THANK YOU FOR COMING
You can reach me at;
bclark@scsengineers.com
813-621-0080