Tag Archive for: clean cities
Carnage in the conventional energy sector has drawn a lot of attention in the past few weeks. But the collapse of recent months was presaged by mediocre performance stretching back literally years. Total returns for the Standard & Poor Energy Sector for 2019, including dividends, were a paltry 6%. And for the entire decade of 2010-2019, the same sector was up 34%, by far the worst performance of the 11 sectors S&P tracks. The fracking revolution, it turns out, created a world awash in oil and gas, but didn’t do much to help the industry that created it.
Which brings us to a related question – if oil & gas are in trouble from COVID-19 and from a decade of overproduction and low prices, what has the ongoing turmoil done to alternative fuels? In particular, since KC Clean Cities operates in the biofueled, beating heart of the Midwest, what’s happened to biodiesel and (particularly) ethanol?
A bit of backstory: more than 95% of vehicle gasoline sold in the US is a 10% ethanol blend. There are several reasons for this. Until about 15 years ago, a compound known as MTBE (methyl tertiary-butyl ether) was blended with gasoline to add oxygen. As a result, gasoline burned cleaner, and cut smog-forming chemicals and toxins like benzene in exhaust. But there were problems – MTBE leaked into groundwater from gas station tanks, creating water quality problems. Moreover, it’s listed as a potential carcinogen. Enter ethanol, exit MTBE with the Energy Policy Act of 2005.
Like MTBE, ethanol adds oxygen to gasoline and cuts smog-forming emissions. Unlike MTBE, it’s also a way for America to deal with its massive agricultural surpluses by distilling a value-added product from corn. (It’s worth noting that ethanol now accounts for 40% of all the corn we grow.)
With the Energy Independence & Security Act of 2007, Congress created a mandate that steadily increasing amounts of renewables would be blended into America’s fuel supply – 36 billion gallons by 2022. This is the Renewable Fuels Standard, which has been hotly debated over the last few years in Washington and elsewhere.
So far so good. Refineries and fuel importers had a choice – they could blend steadily increasing amounts of renewable fuels. Or, if they didn’t want to, they could use RINs – Renewable Inventory Numbers – attached to each gallon of renewable fuel produced. Pecos Pete’s refinery has already hit their required volume of ethanol blended with gasoline for the year, but they keep on blending. Why? Because Brownsville Bob’s refinery hasn’t blended any ethanol into their gasoline. However, Bob can stay in compliance by buying RINs from Pecos Pete, with the price set by the RIN market.
There’s also been a safety valve built into the system, called the Small Refinery Exemption or SRE. “Small” is relative, but refineries with less than 75,000 barrels per day as of 2006 qualify, and can petition EPA to be excused from renewable fuel blending. And this is where the fur begins to fly. Between 2016 and 2018, the EPA granted a total of 85 small refinery exemptions, a big jump that removed a total of 4 billion gallons of mandated demand from the market. This has been a sore spot with farmers, but hardly the only one. The ongoing trade war with China has dried up what was a major market for ethanol, corn and distiller’s grain, a byproduct of the ethanol production process used as animal feed. Allowing year-round sales of E-15 – that is, gasoline that is 15% ethanol by volume hasn’t made much of a dent, since relatively few gas stations sell it even though all light-duty gasoline vehicles 2001 or newer are approved to use E15.
And now, COVID. Just as Texas and Oklahoma oil producers and refineries don’t have any place left to store their crude and refined products as consumer demand collapses, ethanol producers are running out of storage. Federal Reserve research shows US ethanol production down nearly 50% since the beginning of 2020. 73 out of 200 total plants nationwide are shut down, while another 71 are on reduced production schedules. At least two dozen ethanol plants are now producing alcohol for hand sanitizer, but at low volume, much of which will be donated anyway.
For the time being, the sector seems to be shaking its way into stasis. Whatever shape the ethanol industry takes in 2021 and beyond will depend for now on what the virus does– and how we respond – in 2020.
For additional details on why this matters, please check out our guest blog posting by David VanderGriend of the Urban Air Institute. Fuel blending standards can sound arcane, and the details of ethanol and corn and agriculture seem like something taking place in distant, rural counties. They’re not. They impact the lives of residents of metro Kansas City every day, and at the fundamental level of our own health.
Section 127(s) of Title 23 of the United States Code, as amended by the Consolidated Appropriations Act of 2019 (PL 116-6), increases the weight limit for natural gas vehicles operating on the interstate Highway System by an extra 2,000 lbs. This increases the limit from 80,000 lbs to 82,000 lbs.
Federal Highway Administration issued a departmental memorandum providing further guidance for this weight allowance.
FHWA Guidance includes the following:
- State authorities must allow the additional weight on the Interstate Highway System.
- State authorities must provide reasonable access to the Interstate.
- Weight allowance applies beyond the Gross Vehicle Weight (extends to single axel, tandem axel and bridge weight formulas limits).
- Weight allowance must be taken in addition to other weight allowances.
Follow this link below to access the full PDF provided by NVGAmerica. https://www.ngvamerica.org/wp-content/uploads/2020/01/NGV-Weight-Allowance-Guidance.pdf
District: Grain Valley School District
Industry: Education
Location: Grain Valley, Missouri
Vehicles: (14) 2018 IC Bus CE Series propane autogas-fueled buses
Fueling: On-site propane autogas station
Challenge
With aging diesel buses to replace, a Missouri school district looked to alternative fuel options that would save money on fuel and maintenance.
Result
The Grain Valley School District purchased 14 propane school buses. The new buses joined a 49-bus fleet that transports 2,800 students to school from subur
ban and exurban neighborhoods.
Focus on Cost-Cutting
Over the years Missouri state reimbursements for school transportation have dropped from 75 percent to 16 to 20 percent. School districts in the state have had to tap their own general school funds to make up the shortfall.
To help save money, the Grain Valley district considered alternative fuels for its new school buses and comparing compressed natural gas (CNG) and propane autogas. District representatives attended an alternative fuels workshop hosted by Kansas City Regional Clean Cities, a Metropolitan Energy Center program. The district considered various fuels but “the vehicle costs and fueling station costs for CNG were much higher versus propane,” said Shawn Brady, director of transportation.
The district decided to purchase 14 propane buses in 2018 to replace diesel buses of 2001 and 2002 model years. Brady researched and applied for a grant from the U.S. Department of Energy through Kansas City Regional Clean Cities to assist with the purchase costs of the buses.
Preparing for Propane Autogas
To fuel the new buses, the district entered into a contract with their local propane provider, Ferrellgas. A fueling station with two 1,000-gallon tanks was built in the school district’s bus parking lot in April 2018. “It saves time not to have to travel to refuel,” Brady noted.
Infrastructure costs for propane are the lowest of any fuel; alternative or conventional. For Grain Valley schools, the start-up cost for the fueling station totaled $16,500. “We received a 45 percent grant from Metropolitan Energy Center for the installation of our propane fueling station,” Brady said. The center’s grant amounted to $7,425. “The fueling station cost us only $9,075 after the grant.”
Before putting the new buses on the district’s routes, drivers received training in propane bus operation. “Our bus vendor provided training on how to properly operate the buses and maximize fuel efficiency,” Brady said. The district’s technicians traveled to the bus manufacturer’s factory in Tulsa, Oklahoma, for a complimentary week-long training course on maintenance. The district didn’t need to make changes to its bus repair facility. Requirements for a propane vehicle service facility are generally the same as those for conventionally fueled vehicles.
Financial Benefits
After tapping grants for purchase assistance, each new bus cost about $250 more than a comparable diesel bus. District officials say that the higher initial cost can be quickly recouped in fuel savings.
In fact, by adding propane buses to its fleet, Grain Valley School District has noted savings on both fuel and maintenance. On average, propane autogas costs up to 50 percent less than diesel. As part of its 
negotiated contract, Grain Valley paid a locked-in rate of $1.20 per gallon of propane in 2018-1019. For the 2019-2020 school year, the district pays $1.15 per gallon. For comparison, the district pays $2.31 per gallon on average for diesel.
Each bus in the district runs about 9,000 miles per year. For the 2018-2019 school year, fuel savings amounted to about $14,500. “The district’s increased savings year after year will allow the transportation department to serve as a better steward of taxpayer money,” said Brady.
Additional savings come from the reduced maintenance. With propane autogas, no exhaust after-treatment or diesel emissions fluids are required like with diesel to meet today’s strict emissions regulations. Propane vehicles don’t need particulate trap systems, turbochargers and intercoolers. Plus, propane uses less engine oil. All these factors contribute to the overall savings of time and money. The district’s technicians like the propane buses, Brady reports. “There are fewer parts and systems to have to maintain.”
However, Brady explained that “warranty work is challenging with no established shop in Kansas City.” He noted that IC does provide a traveling technician who assists his staff when they encounter maintenance issues. Kansas City Regional Clean Cities recommends fleet managers ensure that there is a local service shop to do warranty and continuing work on buses before purchasing.
Even more saving shows up for the district in the winter. Due to the chemical properties of propane autogas, the propane buses warm up faster and have no cold start issues. Unlike diesel vehicles, these buses can start up in temperatures as low as -40 degrees Fahrenheit. School districts report lower electric costs because the propane buses don’t rely on block heaters. “Our propane buses warmed up faster this past winter than the diesel buses,” Brady said.
Beyond the Bottom Line
Grain Valley’s propane buses are helping the community’s air quality. Unlike diesel buses, propane vehicles emit virtually no particulate matter and, with substantially less nitrogen oxides (NOx). Buses fueled by propane also emit fewer greenhouse gases and total hydrocarbon emissions when compared to diesel buses. Propane’s quiet operation makes riding the bus more pleasant for passengers and safer for drivers, who are less distracted by engine noise. “We’ve benefitted from much cleaner air and much quieter buses running through neighborhoods,” said Brady.
Drivers also report that the propane dispenser pumps are just as fast or faster than the diesel fuel pump when it’s time to fill the tank. The district notes that it will be sure to order buses with 100-gallon fuel tanks going forward. “These were not available from IC when we placed our first order,” Brady said.
The district’s leadership in adopting an alternative fuel earned it a 2018 Agent of Change Award from the Metropolitan Energy Center, a Kansas City nonprofit catalyst for energy efficiency, economic development and environmental vitality.
The district’s plan to purchase seven more propane buses this year, and eventually move to an all-propane fleet, speaks to the administration’s belief in the benefits of this alternative fuel for their students, drivers and overall community.
“Our district made the decision on propane buses to save money. The environmental impact is an added benefit. There’s no reason to not make the move into propane now,” Brady said.
About MOPERC: The Missouri Propane Education & Research Council is a not-for-profit organization authorized by the Missouri Legislature. Dedicated to propane education and public awareness, MOPERC provides industry training, consumer safety, appliance rebates and market development programs. The council is composed of 15 volunteer directors and adm inistered by an executive staff. Visit PropaneMissouri.com.
On Friday, November 10, Mid-Kansas CNG celebrated the Grand Opening of a new compressed natural gas (CNG) fueling station at 636 Thompson Street in Kingman, with a ribbon cutting by the Kingman Area Chamber of Commerce and a luncheon. Owners, Mark Molitor and Mattie Giefer, hosted the event, along with representatives from Central Kansas Clean Cities (CKCC) and KGS, which featured demonstrations of CNG refueling and a tour of the station’s compressor system. The station is open to the public 24 hours daily for refueling of CNG vehicles from autos to tractor-trailers.
Mattie Giefer was looking for a cheaper fuel option for his fleet of vehicles with GCI Construction and turned to Mark Molitor, who is in the oil & gas business, for a solution. Together they formed Mid-Kansas CNG to fulfill the need for natural gas fueling in the Kingman area. After consultation with area trucking companies, a location on the US-54/US-400 corridor was selected. The station will fill a CNG fueling gap between Wichita, 50 miles to the east, and Garden City and Liberal, both about 175 miles west. Molitor and Giefer believe that CNG is a more economical and better environmental choice for transportation. They are open to inquiries about fleet fueling on the site.
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- Mid-Kansas CNG owners, Mark Molitor (left) and Mattie Giefer (right), hold the ribbon for the ceremony.
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- Shawn Schmidt, CKCC Program Coordinator, Ron Ediger, KGS, Dennis Brown, CKCC Board Member, and Kelly Gilbert, KC Regional CC Executive Director, check out a CNG vehicle.
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- Street view of Mid-Kansas CNG station.
Kansas City Regional Clean Cities Coordinator Kelly Gilbert Inducted into Clean Cities Hall of Fame
KANSAS CITY – The U.S. Department of Energy (DOE) honored Kansas City Regional Clean Cities Coordinator Kelly Gilbert for her dedication and outstanding accomplishments in reducing Missouri and Kansas’s dependence on petroleum in transportation. DOE’s National Clean Cities Director Dennis Smith and Co-Director Linda Bluestein inducted Gilbert into the Clean Cities Hall of Fame on Thursday, August 24, while in Golden, Colo., where representatives from nearly 100 Clean Cities coalitions from across the country gathered for the 2017 Clean Cities Coordinator Workshop.
Gilbert began her work with Kansas City Regional Clean Cities nine years ago and has since led the coalition to leave a monumental impact on the region it serves. In 2016 alone, the coalition averted more than 34,000 tons of greenhouse gases and saved more than 9.7 million gasoline gallon equivalents of petroleum through the deployment of alternative and renewable fuels, advanced vehicles, idle reduction, and fuel economy improvements.
“Kelly has a unique ability for building lasting connections that benefit the program,” Bluestein said. “There is no doubt that she has made a lasting impact on the local alternative fuel market in the Kansas City region.”
Gilbert rose through the Clean Cities ranks quickly, beginning to work with the coalition in 2008, becoming Coordinator in 2009, Director of Transportation Programs at nonprofit Metropolitan Energy Center in 2010, and is now its program director. Every step along the way she’s been a leader and an innovator.
She secured and oversaw four U.S. Department of Energy grants including the Midwest Region Alternative Fuels Project in 2009 and the EV Community Readiness “Electrify Heartland” project in 2011. She banded together four states—Missouri, Iowa, Nebraska, and Kansas—for the 2012/2013 Mid America Collaborative for Alternative Fuels Implementation or “MAC” project. The grant allowed Kansas City Regional, St. Louis, and Iowa Clean Cities to establish a fleet recognition program called “Mid-America Green Fleets.” More recently, she managed the Safe Alternative Fuels Deployment in Mid-America project, which partnered with two University Fire Institutes in Kansas and Missouri to establish first responder training for compressed natural gas and propane vehicles. The training is now available nationwide to state fire training directors for use in their programs.
In addition to all of these projects, Gilbert has worked closely with Kansas Soybean Commission on biodiesel outreach and training, helped school districts and local governments access Congestion Mitigation and Air Quality Improvement funds, and directed Diesel Emission Reduction Act funds to local freight projects. Representing the Kansas City Regional coalition, Gilbert has established herself as a key player.
“It is a tremendous honor to be recognized by the Clean Cities community. I’m proud to be part of a network that, working largely out of the limelight and without huge budgets, has done so much to improve air quality, encourage new technologies and partnerships, and make a real, measurable difference in improving the environment that all Americans share,” said Gilbert.
Kansas City Regional Clean Cities is a program of Missouri nonprofit Metropolitan Energy Center and is a designated member of the U.S. Department of Energy’s Clean Cities program. Clean Cities advances the nation’s economic, environmental, and energy security by supporting local actions to cut petroleum use in transportation. A national network of nearly 100 Clean Cities coalitions brings together stakeholders in the public and private sectors to deploy alternative and renewable fuels, idle-reduction measures, fuel economy improvements and emerging transportation technologies. For more information, visit metroenergy.org, cleancities.energy.gov and cleancities.energy.gov/hall-of-fame.
Tag Archive for: clean cities
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