1. NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. Fleet Regulatory Requirements EPAct Fleet and Stakeholder Workshop: Salt Lake City, UT Dave Gelman – New West Technologies Ryan Daley – NREL August 26, 2010 Innovation for Our Energy Future

2. Who are We Bringing Together? State Alternative Fuel Providers Federal Transit Municipal Private Other Regulated Voluntary Alternative Fuel (AF) Infrastructure State Fleets: agencies, DOTs, universities/colleges Alternative Fuel Providers: gas/electric utilities; municipal power generators; electric cooperatives Federal Fleets: Civilian/military agency fleets, GSA

3. Innovation for Our Energy Future Why Bring Them Together? Many regulated fleets lack access to AF needed to achieve/exceed compliance Many voluntary fleets lack needed AF refueling infrastructure Fuel providers/marketers/distributors may be willing to install AF infrastructure or otherwise supply AFs, if sufficient demand demonstrable Existing AF infrastructure may be underused – spreading the word can help

4. Innovation for Our Energy Future So Why These Workshops? A single fleet’s AF demand is rarely sufficient to support AF infrastructure (particularly retail) Workshops seek to foster links between mandated and voluntary fleets and fuel providers to overcome hurdles and increase AF availability -Regulated fleets can be anchor fleets for demand Working together at local level (and explaining what a regulated fleet must do) can expose incentives and facilitate cooperation Outreach on existing underused AF infrastructure

5. Innovation for Our Energy Future Fleet Requirements – SFP Energy Policy Act of 1992 (EPAct 92) requires certain State and Alternative Fuel Provider (SFP) fleets to acquire alternative fuel vehicles (AFV) if: -Fleet has 50 non-excluded light-duty vehicles (LDVs) total -Fleet has > 20 non-excluded LDVs in a single Metropolitan Statistical Area (MSA) or consolidated MSA (CMSA) with > 250,000 population in 1980 Excluded vehicles include: -Take-home vehicles -Law enforcement or emergency vehicles -Vehicles used to restore electricity operation in emergencies -Non-road vehicles (e.g., Neighborhood Electric Vehicles (NEVs))

6. Innovation for Our Energy Future Fleet Requirements – SFP Current AFV acquisition requirements: -States – 75% of annual covered LDV acquisitions -Alternative Fuel Providers – 90% of annual covered LDV acquisitions Fuel use requirement -Alternative Fuel Providers must use AF when AFV operating in area in which AF is available Model Year for Program -- 9/1 to 8/31

7. Innovation for Our Energy Future Fleet Compliance Options – SFP Initially, fleets could only comply by acquiring AFVs -AFVs include E-85 Flexible Fuel Vehicles (FFV), Compressed Natural Gas (CNG) or Propane (LPG) dedicated or bi-fuel vehicles, dedicated Electric Vehicles (EVs) -Conversions - only if <120 days of entry into fleet -Exemptions if no appropriate AFV model or AF available -Fleets may bank/trade credits for early/excess acquisitions Congress later allowed fleets to meet up to 50% of annual AFV acquisition requirements through purchase for use of biodiesel, if blend >20% biodiesel (B20) -One acquisition credit for every 450 gallons of B100 -Blend level must exceed state or Federal fuel requirements -Note: No banking/trading of these credits This is Standard Compliance (SC): currently only AFV acquisitions, Biodiesel use, and credits

8. Innovation for Our Energy Future Fleet Compliance Options – SFP Additional Ways to Comply under SC: EISA 2007 authorized DOE to allot credit levels for Electric Drive Vehicles (hybrids, PHEVs, MD/HD EVs, NEVs) – rulemaking underway State Fleets also may employ State Plan -State would obtain voluntary commitments of AFV acquisitions from other fleets to meet requirements -None to date

9. Innovation for Our Energy Future Fleet Compliance Options – SFP Under EPAct 2005, Alternative Compliance (AC) Option Added Instead of earning credits for AFV acquisitions or biodiesel use, fleet opts to demonstrate petroleum reductions equal to amount of AF that would have been used if all of fleet’s AFVs ran on AF 100% Allows for counting AF use in fleet vehicles Increases flexibility for some options -For example, biodiesel may used to achieve >50% of requirements and be in blends <B20 Adds petroleum reduction options (e.g., increased efficiency (smaller vehicles or hybrids), idle reduction, and vehicle miles traveled reductions)

10. Innovation for Our Energy Future SFP Fleet Overall Status ~300 fleets covered nationally 10-20,000 AFVs acquired annually, most now are FFVs (a few hundred NGVs/year) -Since program began in MY97, 60% FFVs, ~25% NGVs, ~10% LPGVs 3 to 6M gallons of B100 use annually, several times the amount for which fleets receive credit Virtually 100% Fleet Compliance -Handful of fleets do require some handholding to come into compliance Fewer but growing number of fleets in newer AC option (~12)

11. Innovation for Our Energy Future Who are Local SFP Fleets? State of Utah (reported by the Division of Fleet Operations) -PacifiCorp -Questar Together, these fleets annually acquire around 200 AFVs (now virtually all E-85 FFVs) and purchase approximately 33,000 gallons of B100* * NOTE: Totals include contributions from state-wide State of UT agency & university fleets, some of which are not located in the Salt Lake City area.

12. Innovation for Our Energy Future Fleet Requirements – Federal Federal Fleet requirements from EPAct 1992 are similar to those for SFP Fleets Applies to Federal fleets of 20 or more LDVs that are centrally fueled and operated primarily in a single MSA/CMSA -There are 21 ‘covered’ Federal Agencies Similar excluded vehicles to SFP, although also include military tactical vehicles

13. Innovation for Our Energy Future Fleet Requirements – Federal EPAct 1992 -Federal fleets must acquire AFVs -Original Equipment Manufacturer (OEM) vehicles and Credits for Biodiesel Use EPAct 2005 -AFVs must use AFs unless they receive a waiver from DOE (AF unavailable or too expensive) -54 percent of Federal dual-fueled AFVs waivered in FY 2010! -OMB: Reduce the number of waivers received annually from DOE E.O. 13423 -2% annual petroleum reduction and 10% annual AF use increase requirements National Defense Auth. Act (NDAA) of 2008 -Added new vehicle types to AFV definitions: advanced lean burn vehicles, qualified hybrid vehicles, any other vehicle that demonstrates significant petroleum reduction

14. Innovation for Our Energy Future Fleet Requirements – Federal Additional requirements along the way… Energy Independence & Security Act (EISA) of 2007 –Section 141: Feds must acquire only low Green House Gas (GHG) emitting vehicles (EPA issued guidance) –Section 142: Petroleum consumption and AF use goals for 2015 (DOE finalizing guidance) –Section 246: Agencies must install renewable fuel pump at each Federal fueling center in the U.S. by January 1, 2010 NEW!! E.O. 13514 –Extends 2% annual petroleum reduction to 2020 and requires agency Greenhouse Gas reductions –Required Development of Master Fleet Guidance Document –Comprehensive Fleet Management Handbook to accompany official guidance

15. Innovation for Our Energy Future Federal Fleet – Acquisitions Feds acquired more than twice as many AFVs as required, but… …over 74,000 Federal AFVs received waivers for AF use Biodiesel credits

16. Innovation for Our Energy Future Federal Fleet – Acquisitions & Inventory Total FY 2009 AFV Acquisitions by covered Federal Agencies Total FY 2009 AFV Inventory of covered Federal Agencies

17. Innovation for Our Energy Future Federal Fleet – Acquisitions & Inventory 2009 Diesel Use: over 55M GGE (35% increase from ’08) just 4M GGE biodiesel (decreased 53% since ’07) Use of Biodiesel (B20 and up) can be a cheap alternative for acquisition credits. 66,000 Federal Diesel Vehicles Nationwide Over 6,300 Federal Diesel Vehicles in California

18. Innovation for Our Energy Future Federal Fleet – Petroleum Reduction *Excludes military tactical, law enforcement, and emergency vehicles. **Includes all alternative fuels: Biodiesel portion of B20, B100, E85, CNG, LNG, LPG, Hydrogen, and Electricity.

19. Innovation for Our Energy Future Federal Fleet – Alternative Fuel Use *Excludes military tactical, law enforcement, and emergency vehicles. **Includes all alternative fuels: Biodiesel portion of B20, B100, E85, CNG, LNG, LPG, Hydrogen, and Electricity.

20. Innovation for Our Energy Future Federal Fleet Challenges & Opportunities for Increasing Alternative Fuel Use Challenges -E85 Infrastructure (54% of Federal FFVs still lack access to E85) -CNG & Propane: Only 1 light-duty OEM Vehicle currently available via GSA (Honda Civic CNG) -Hybrids will continue to be acquired in large numbers -EV infrastructure and vehicle availability Opportunities -E85 vehicles continue to be the AFV of choice -Diesel use is on the rise, but biodiesel use has remained constant -CNG & Propane: Medium- and Heavy-Duty applications -First EV on GSA schedule this year (Smith Electric Vehicles’ Newton truck)

21. Innovation for Our Energy Future Who are Local Federal Fleets? U.S. Postal Service (USPS) (354 waivered vehicles) Army (182) U.S. Dept. of Agriculture (USDA) (73) Veterans Administration (VA) (50) Navy (21) Department of Transportation (DOT) (18) Department of Homeland Security (EPA) (34)

22. Innovation for Our Energy Future The Fuel Up Project – July 2011 Goal -Stimulate infrastructure development by bringing fleets and fuel providers together (at a national level) -Help resolve development barriers -Has led to development of more than 70 new AF sites so far Participants -Bring supply and demand side together: fleet managers, fuel providers, infrastructure developers. Agenda -General session followed by breakout sessions (E-85, Biodiesel, CNG, Electric) -You can drive the agenda: contact ssilvani@sentech.org to suggest topics, and ensure your concerns are covered.ssilvani@sentech.org

23. Innovation for Our Energy Future Local Alternative Fuel Infrastructure As of August 2010, the Alternative Fuels Data Center (AFDC) Station Locator (http://www.afdc.energy.gov/afdc/locator/stations/) indicates the following AF refueling stations in Utah: E85B20+NGLPGElec.H2 Total Private 003910040 Public 4228270061 Total 42672800101 If you know of more, PLEASE let your Clean Cities Coordinator know (or send it to the AFDC)!

24. Innovation for Our Energy Future Useful Data Now Available to Help!

25. Innovation for Our Energy Future So Where Does this Leave Us? Fleets need help to increase use of AFs, either to meet regulatory requirements, fleet initiatives, or voluntary commitments -Teaming with other fleets to create sufficient demand for Alternative Fuels -Fuel providers willing to install infrastructure Breakout sessions provide opportunity to discuss needs and next steps The beginning of an on-going dialogue!

26. Innovation for Our Energy Future Codes & Standards Something critical to make sure you address when looking at adding infrastructure…. Why? -Set uniform safety and performance standards -Allow for the implementation of technologies -Without them, may be difficult to implement technologies because code officials may not approve projects where there are no safety requirements -Projects get reviewed on a case-by-case basis Applicability -Scope of requirements will be fuel-type dependent (i.e., hydrogen, E85, etc.)

27. Innovation for Our Energy Future Codes & Standards (cont’d) What? Some basic definitions…… Permitting - legal review and approval process to protect public and worker safety Jurisdiction - entity having legal authority to enforce laws Regulation - legal requirement appropriate jurisdiction promulgates Code - document requiring that something be done Standard - document defining how code requirement be met Building codes and sprinklers - sprinkler protection required and sprinkler standard states how sprinklers must be designed, installed, and operated

28. Innovation for Our Energy Future Codes & Standards (cont’d) Who are the standards organizations? American National Standards Institute (ANSI) sets requirements for codes and standards development The ANSI consensus process - open, equitable, structured, endless Non- ANSI codes – the International Building Code uses their own consensus process How to get projects implemented? 1.Identify applicable codes and standards 2.Identify Authority Having Jurisdiction (AHJ) 3.Meet with AHJ and submit required permit applications 4.Track permit applications to ensure review process does not stall

29. Innovation for Our Energy Future Thanks To: U.S. DOE State and Alternative Fuel Provider (SFP) Fleet Program (Dana O’Hara) U.S. DOE Federal Energy Management Program (FEMP) Federal Fleets Program (Amanda Sahl) National Renewable Energy Laboratory (Management and Technical Expertise) Clean Cities Coordinator (Local Expertise/Contacts): -Carrie Giles, Northern Director, Utah Clean Cities -Robin Erickson, Southern Director, Utah Clean Cities Kellie Walsh (Overall Workshop Direction) The ATTENDEES, who are the ones who WILL make things happen! Questions?

30. Innovation for Our Energy Future Contacts: Dave Gelman New West Technologies, LLC dgelman@nwttech.com Ryan Daley National Renewable Energy Laboratory ryan.daley@nrel.gov