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Multi-State NGV Initiative Overview C. Michael Ming Secretary of Energy State of Oklahoma Oklahoma House of Representatives Interim Study Oklahoma City,

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Presentation on theme: "Multi-State NGV Initiative Overview C. Michael Ming Secretary of Energy State of Oklahoma Oklahoma House of Representatives Interim Study Oklahoma City,"— Presentation transcript:

1 Multi-State NGV Initiative Overview C. Michael Ming Secretary of Energy State of Oklahoma Oklahoma House of Representatives Interim Study Oklahoma City, OK September 11, 2012 Office of the Oklahoma Secretary of Energy

2 The Bipartisan Multistate Coalition MOU States RFP StatesVery Interested Outreach Forums

3 Timeline Solicitation Award Announcement October 5, 2012 Solicitation Responses Due September 14, 2012 Oklahoma City Solicitation Overview Meeting August 8, 2012 Solicitation Release July 24, 2012 RFI Responses Due Jun 15, 2012 Denver RFI Overview Meeting May 9, 2012 RFI Released April 25, 2012 MOU Signed November 9, 2011 Oklahoma Colorado

4 Requests For Information (RFI): Informing The Multistate Solicitation OEMs Upfitters/Converters/QVMs Infrastructure Retail Sales Producers * * Responding Late

5 Developing A Practical Strategy Full-Sized/Mid-Sized Sedans Band 1 Compact Sedans Band 2 ½ Ton Pickups Band 3 ¾ Ton Pickups Band 4 1 Ton Pickups Band 5 ¾ Ton Cargo Vans Band 6 1 Ton Cargo Van Band 7 Transit Cargo Vans Band 8 Long-Term Vision Near-Term Success

6 Oklahoma Vehicles Inventory Band 8 Band 2 Key Statistics FY-11 Total Inventory: 11,092** FY-11 Purchases: ~751 Average Price Purchase Price: Overall: $33,644 ½ ton Pickup s~ $26,000 Sedans ~ $18,000 Compact Sedans ~ $16,000 More Than 80% of Vehicles Fall Within Proposed Bands * Excludes DPS, Higher Education, and most nonreporting agencies. ** Includes most higher education. Band 5 Bands 6/7 Band 1

7 Oklahoma Fleet Age Key Statistics Average Vehicle Replacement Schedule: DPS/ODOT: 175,000 miles FMD: 120,000 miles Higher Education: 60,000 miles

8 Oklahoma CNG Infrastructure Source: CNGnow.com, August 27, 2012

9 Peering Into The Black Box: CNG Pricing Pump Price of $1.99/ggePump Price of $2.45/gge Source: Chesapeake Energy Corporation, 2012

10 Low Variable Costs Mitigate Price Volatility If NYMEX is $4.00/mcf CNG is 1.50/gge If NYMEX is $8.00/mcf CNG is 2.00/gge If NYMEX is $12.00/mcf CNG is 2.50/gge Source: Chesapeake Energy Corporation, 2012

11 Additional Items: New CAFE Standards Promoting A “Technology Neutral Approach” CAFE standards influence manufacturer product planning New standards for 2017-2025 model years finalized August 28, 2012 PHEVs, NGVs receive same incentives under the final rule

12 C. Michael Ming Email: michael.ming@doe.ok.gov Web: www.ok.gov/energy Office of the Oklahoma Secretary of Energy


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