Grant to Advance Fuel-Efficient Vehicle Technologies

FOR IMMEDIATE RELEASE  Contact: Anna Rosenbaum 202.618.6363 / anna@narc.org National Association of Regional Councils Receives Grant to Advance Fuel-Efficient Vehicle Technologies WASHINGTON (March 22, 2016) - The National Association of Regional Councils (NARC) is launching the Aggregated Alternative Technology Alliance (AATA) initiative as part of the national effort to reduce petroleum consumption by 2.5 billion gallons per year by 2020 through the acquisition of alternative fuel and/or advanced technology vehicles and related technology (AFATVs). This initiative is funded by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy Clean Cities Program under the Alternative Fuel and Advanced Vehicle Procurement Aggregating Initiative. Led by NARC, AATA is a partnership between five regional councils, nine Clean Cities coalitions, and five technical partners that is dedicated to advancing fuel-efficient vehicle technologies through targeted outreach and education and the coordination of five large regional procurement initiatives and one national scale initiative. AATA is designed as a sustainable and replicable approach towards collaborative procurement for AFATV that encourages peer exchange of best practices and provides access to experts in AFATV fields nationwide. The AATA team represents over 63 million Americans across the country and will directly engage at least 40,000 key AFATV stakeholders through procurement initiatives. AATA technical partners, Meister Consultants Group, Inc., Electrification Coalition, Yborra & Associates, ICM, and the Propane Education & Research Council, will work with five regional councils and Clean Cities coalitions to create and leverage AFATV best practices and procurement templates that can be modified to meet the needs and legal requirements of jurisdictions. In addition, AATA will explore options to combine or bundle AFATV with the re-fueling and charging station infrastructure, creating additional cost reduction opportunities to help reduce large-scale adoption barriers. The Mid-America Regional Council (MARC), Metropolitan Area Planning Council, Metropolitan Washington Council of Governments, North Central Texas Council of Governments, and Pima Association of Governments, with support from their Clean Cities coalitions, will each deploy a regional procurement process using tailored best practices and templates to combine their member governments’ purchasing power for AFATV. The national procurement initiative will be spearheaded by MARC with support from NARC and several Clean Cities from around the country, including the Clean Communities of Central New York, Metropolitan Energy Center /Kansas City Regional Clean Cities, Tucson Regional Clean Cities Coalition, Utah Clean Cities, Western Washington Clean Cities, and Clean Fuels Ohio. “NARC is excited to be leading this highly qualified Alliance as it makes alternative fuel and other advanced vehicles more accessible to communities, “ said NARC Executive Director Leslie Wollack. “By coming together regionally to reduce costs and streamline the procurement process, we’ll be able to make big strides in the [AFATV] market thereby reducing petroleum dependence at the national level.” In all, AATA strives to positively impact the AFATV market in a 24-month period through the deployment of replicable fuel-neutral best practices and cooperative procurement templates that will enable competitive pricing and lower the up-front cost up to 15% for AFATV acquisition in local, regional, and state jurisdictions, as well as for private fleets through five large regional procurement initiatives and one national scale initiative.   ### About the National Association of Regional Councils The National Association of Regional Councils (NARC) serves as the national voice for regionalism by advocating for regional cooperation as the most effective way to address a variety of community planning and development opportunities and issues. NARC’s member organizations are composed of multiple local governments that work together to serve American communities – large and small, urban and rural. Visit www.NARC.org for more information.  The Clean Cities Program Since 1993, the Energy Department’s Clean Cities program has supported community-led efforts to help fleets and consumers find the alternative fuel or fuel-efficient solutions that meet their needs. Clean Cities’ nearly 100 local coalitions across the country work to reduce petroleum consumption, limit pollution, and save money.

2016 Westport Training Schedule Released

Westport News Update:

2016 service training schedule is set! This intense three-day course, held at our Westport facility in Dallas, Texas covers a range of essential topics in both the classroom and on our Production floor - including hands-on repairs for light-duty vehicles (dedicated and bi-fuel).

This year we have 5 sessions:

1) April 13-16

2) June 15-17

3) August 17-19

4) October 19-21

5) December 7-9

The classes are free! I believe it's critical to have a robust training program - that's how vehicles are diagnosed efficiently and effectively, thereby reducing downtime (and loss of revenue / use) of your vehicles. Many companies "talk" about the importance of a training program, but this program is another example of Westport's commitment to delivering a high level of customer service. This is the backbone of a truly successful alternative fuel vehicle offering. Because of how important I view this program, I want to make this as small of a financially burden on your organization as feasible. 

I'm often asked if we can do training on-site...at your location. The answer is "yes". There will be a cost; however, the real crux is I believe it does a disservice to your folks. In Dallas, technicians are able to learn about various systems through our extensive line-up of vehicles located on-site and they are able to meet face-to-face, the very people they will interacting with on warranty and service support (many comment this is worth the trip alone!). Is it because we have great people? Well, yes...but more importantly, it provides your technicians a clear path to resolution of a vehicle - whether it be shipping a part or diagnosing a vehicle.  

What do you need to do? Email me back with specifics - (a) how many people and (a) what dates you are requesting and I'll ensure it gets to the right people to coordinate. Space is limited as we try and limit the number of people per class. If you are interested, I would jump on this opportunity as quickly as possible.

Switching gears...

Many energy experts have predicted low energy prices for the next couple of years, but the recent month or so shows that energy prices may have bottomed. The chart below highlights the stability of natural gas prices. If you like volatility and uncertainty, gasoline is a great option. 

Last comment - we received our MY2016 CNG Transit Cargo Van / Passenger Wagon EPA certification; CARB pending (expected very soon). Our dedicated CNG F-150 CARB certification is imminent. I appreciate your business and if there is anything I can do to further support you and your organization, please do not hesitate to reach out.

March Question of the Month

Question of the Month: It’s tax time! What are some common questions related to the federal tax credits for alternative fuels and infrastructure?

Answer: Tax season is upon us, and the recent federal tax incentive extensions and changes impact the alternative fuel and infrastructure tax credits.

The Consolidated Appropriations Act of 2016 (H.R. 2029, https://www.congress.gov/bill/114th-congress/house-bill/2029/text) retroactively extended several tax credits, including the Alternative Fuel Excise and Alternative Fuel Infrastructure Tax Credits. It also included updates to calculation method for the Alternative Fuel Excise Tax Credit amounts, specifically for propane and liquefied natural gas (LNG). Below we discuss three recent frequently asked questions about these credits.

How have the Alternative Fuel Excise Tax Credit amounts changed for propane and LNG in 2016 and beyond?

The Alternative Fuel Excise Tax Credit (http://www.afdc.energy.gov/laws/319) applies to alternative fuel sold or used to operate a motor vehicle. Previously, the excise tax credit amount for propane and LNG was based on a volumetric basis ($0.50 per gallon). For fuel sold or used starting January 1, 2016, however, the excise tax credit amount for propane and LNG is based on an energy equivalent basis. This means the credit for propane is now measured per gasoline gallon equivalent (GGE) and LNG is measured per diesel gallon equivalent (DGE). Specifically, the updated Internal Revenue Service (IRS) Form 8849, Schedule 3 (https://www.irs.gov/pub/irs-prior/f8849s3--2016.pdf) defines 2016 tax credit rates for propane and LNG as follows:

·        Propane: One GGE is equal to 5.75 pounds (lbs.) or 1.353 gallons of propane.

·        LNG: One DGE is equal to 6.06 lbs. or 1.71 gallons of LNG.

What does this mean for propane and natural gas retailers and fleets? In short, the tax credit for the same amount of fuel is now less:

·        The propane tax credit was previously $0.50 per gallon and is now $0.50 per GGE (1.353 gallons of propane), which equates to $0.37 per gallon.

·        The LNG tax credit was previously $0.50 per gallon and is now $0.50 per DGE (1.71 gallons of LNG), which equates to $0.29 per gallon.

The tax credit amount for compressed natural gas (CNG) is still based on the GGE, where one GGE is equal to 121 cubic feet.

Natural Gas Vehicles for America (NGVAmerica) provides additional information on federal tax incentives for LNG and CNG (https://www.ngvamerica.org/government-policy/federal-incentives/federal-tax-incentives), and highlights the impacts of the recent tax credit changes in the article, New Year Rings in Changes for CNG and LNG in 2016 (http://ngv.com/new-year-rings-in-changes-for-cng-and-lng-in-2016/). The National Propane Gas association explains the excise tax equalization for propane (https://www.npga.org/i4a/pages/index.cfm?pageid=1898).

So, you said the Alternative Fuel Excise Tax Credit was retroactively extended. Does that mean I can claim it for fuels sold or used in 2015?

Yes! Both the federal Alternative Fuel Excise Tax Credit and Biodiesel Mixture Excise Tax Credit (http://www.afdc.energy.gov/laws/395) were extended to cover 2015, meaning that propane, CNG, LNG, hydrogen, and biodiesel sold or used in 2015 are eligible for the federal tax credit. To file for the tax credit, registered claimants must submit a single one-time 2015 claim with IRS Form 8849 (https://www.irs.gov/pub/irs-pdf/f8849.pdf), as well as the accompanying Schedule 3 (https://www.irs.gov/pub/irs-pdf/f8849s3.pdf). The deadline to submit a claim for fuels sold or used in 2015 is August 8, 2016. Please note that the tax credit amount for propane and LNG sold or used in 2015 is based on the previous, volumetric rate of $0.50 per gallon.

For additional information on claiming the tax credit for fuels sold or used in 2015, please see IRS Notice 2016-05 (https://www.irs.gov/pub/irs-drop/n-16-05.pdf).

Are tax-exempt entities eligible for the Alternative Fuel Infrastructure Tax Credit?

While a tax-exempt entity, such as a school or state government fleet, may not be eligible to claim the Alternative Fuel Infrastructure Tax Credit (http://www.afdc.energy.gov/laws/10513) directly, the entity selling the fueling infrastructure to the tax-exempt entity can claim the credit and pass the “discount” along to the fleet. According to Title 26 of the United States Code, Section 30C(e)(3) (https://www.gpo.gov/fdsys/pkg/USCODE-2014-title26/pdf/USCODE-2014-title26-subtitleA-chap1-subchapA-partIV-subpartB-sec30C.pdf), the entity selling the fueling equipment to the tax-exempt entity can be treated as the taxpayer and claim the Alternative Fuel Infrastructure Tax Credit, but only if the seller discloses the amount of the credit allowable to the tax-exempt purchaser in writing. In practice, this means the tax-exempt fleet would have the opportunity to use this information to request a discount. However, the infrastructure seller is not required to pass along any savings associated with the tax credit.

For more information on how tax-exempt entities may be eligible for the Alternative Fuel Infrastructure Tax Credit, please see the IRS Instructions for Form 8911 (https://www.irs.gov/pub/irs-pdf/i8911.pdf).

Please note that the Technical Response Service recommends consulting a qualified tax professional or the IRS before making any tax-related decisions.

Februrary Question of the Month

Question of the Month: Clean Cities uses a lot of acronyms. What are the most important ones to understand? 

Answer: Have you ever been on the DOE’s AFDC to learn about EVSE for EVs or PHEVs to meet EPAct requirements? Let’s take a step back. Perhaps you feel like you need a translator just to understand the basics of alternative fuels and advanced vehicles. If this sounds familiar, get in the know with our list of the top Clean Cities acronyms, broken down into 10 categories:

1.      Federal Agencies and National Laboratories

a.      DOE: U.S. Department of Energy: The federal agency with the mission to ensure America’s security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. Clean Cities is part of that overall mission. DOE includes:

                                        i.     EIA: Energy Information Administration: Collects, analyzes, and disseminates impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy.

                                       ii.     DOE National Laboratories: Organizations affiliated with DOE, focused on delivering solutions to energy challenges and transforming the way our nation uses energy. There are more than a dozen DOE national laboratories. The labs that contribute to the work of Clean Cities include:

1.      ANL: Argonne National Laboratory

2.      INL: Idaho National Laboratory

3.      NREL: National Renewable Energy Laboratory

4.      ORNL: Oak Ridge National Laboratory

5.      PNNL: Pacific Northwest National Laboratory

b.      DOT: U.S. Department of Transportation: A federal agency with the mission to ensure a fast, safe, efficient, accessible, and convenient transportation system that meets our national interests and enhances the quality of life of the American people, today and into the future. The Federal Highway Administration (FHWA) is part of DOT.

c.      EPA: U.S. Environmental Protection Agency: A federal agency with the mission to protect human health and the environment.

2.      AFDC: Alternative Fuels Data Center: A web-based resource that provides information, data, and tools to help fleets and other transportation decision makers find ways to reduce petroleum consumption through the use of alternative and renewable fuels, advanced vehicles, and other fuel-saving measures.

3.      Vehicle Characteristics  

a.      GVWR: Gross vehicle weight rating: A metric that includes total vehicle weight plus fluids, passengers, and cargo. GVWR is used to define vehicle classes.

b.      VMT: Vehicle miles traveled: VMT is the number of miles traveled by a vehicle or set of vehicles over a certain time period.

4.      Fuel Economy

a.      MPG: Miles per gallon: The standard for tracking a vehicle’s fuel economy.

b.      MPGe: Miles per gallon of gasoline-equivalent: For vehicles that do not use liquid fuels, a measure of fuel economy that allows for a reasonable comparison between vehicles using different fuels. MPGe represents the number of miles the vehicle can go using a quantity of fuel with the same energy content as a gallon of gasoline.

c.      GGE: Gasoline gallon equivalent: The amount of fuel it takes to equal the energy content of one liquid gallon of gasoline.

d.      DGE: Diesel gallon equivalent: The amount of fuel it takes to equal the energy content of one liquid gallon of diesel.

5.      Vehicle Classes: Various agencies and organizations classify vehicles differently. Below are FHWA classifications:

a.      LDV: Light-duty vehicle: A vehicle under 10,000 pounds (lbs.; Class 1-2).

b.      MDV: Medium-duty vehicle: A vehicle between 10,000 and 26,000 lbs. (Class 3-6).

c.      HDV: Heavy-duty vehicle: A vehicle over 26,000 lbs. (Class 7-8).

6.      Vehicle Emissions and Pollutants

a.      GHG: Greenhouse gas: A global pollutant, meaning it has climate and other impacts globally, no matter where it is emitted. Carbon dioxide (CO₂) is by far the most abundant GHG produced by the transportation sector.

b.      Air pollutants:

                                        i.     CO: Carbon monoxide: A colorless, odorless gas emitted from combustion processes. In the United States, 56% of CO (up to 95% in cities) is emitted by on-road vehicles.

                                       ii.     NOx: Oxides of nitrogen: A group of highly reactive gasses emitted from combustion processes that contribute to the formation of ground-level ozone.  Approximately 55% of man-made NO_x emissions come from motor vehicles.

                                     iii.     SOx: Oxides of sulfur: A group of highly reactive gasses emitted from combustion processes. SO_x is a concern for life cycle analysis of electric vehicle emissions, but not for conventional or other alternative fuel vehicles, because electricity generation is the largest source of SO_x.

                                     iv.     PM: Particulate matter: A complex mixture of acids, organic chemicals, metals, and soil or dust particles, emitted directly from vehicles (especially diesel) and formed through the atmospheric reactions of NO_x and SO_x.

                                       v.     VOC: Volatile organic compound: Organic compounds that become a gas at room temperature. VOCs are the leading cause of ground-level ozone, also known as smog.

7.      Alternative Fuels and Alternative Fuel Vehicles

a.      AFV: Alternative fuel vehicle: Any dedicated, flexible fuel, bi-fuel, or dual-fuel vehicle designed to operate on at least one alternative fuel.

b.      Biodiesel

                                        i.     B5: 5% biodiesel, 95% petroleum diesel: Considered diesel fuel and approved for safe operation in any compression-ignition engine designed to operate on petroleum diesel.

                                       ii.     B20: 20% biodiesel, 80% petroleum diesel: The most common biodiesel blend in the United States.

                                     iii.     B100: 100% biodiesel: Also referred to as pure biodiesel.

c.      Electricity

                                        i.     HEV: Hybrid electric vehicle: Powered by an internal combustion engine (ICE) and an electric motor that uses energy stored in a battery. The battery is charged through regenerative braking and by the ICE.

                                       ii.     PEV: Plug-in electric vehicle: Derives all or part of their power from electricity supplied by the electric grid. PEVs include:

1.           PHEV: Plug-in hybrid electric vehicle: An HEV that can be plugged into an electric power source to charge the battery.

2.           EV: All-electric vehicle: Uses a battery to store the electric energy that powers the motor. Batteries are charged by plugging the vehicle into an electric power source.

                                     iii.     EVSE: Electric vehicle supply equipment: Deliver electrical energy from an electricity source to charge a PEV’s batteries.

d.      Ethanol

                                        i.     E85: A high-level ethanol-gasoline blend containing 51%-83% ethanol, depending on geography and season.

                                       ii.     FFV: Flexible fuel vehicle: A vehicle with an ICE capable of operating on gasoline, E85, or a mixture of the two.

e.      Hydrogen

                                        i.     FCEV: Fuel cell electric vehicle: A vehicle that uses electricity to power a motor, but produces its primary electricity using a fuel cell powered by hydrogen.

f.       Natural Gas

                                        i.     CNG: Compressed natural gas

                                       ii.     LNG: Liquefied natural gas

                                     iii.     RNG: Renewable natural gas: Also known as biomethane, a fuel produced from organic materials (e.g., waste from landfills, livestock). It can be compressed or liquefied, and is pipeline-quality gas that is compatible with conventional natural gas in vehicles.

                                     iv.     NGV: Natural gas vehicle: A dedicated, bi-fuel, or dual-fuel vehicle capable of running on CNG or LNG.

g.      Propane

                                        i.     LPG: Liquefied petroleum gas: A term used interchangeably with propane.

8.      Clean Cities Tools and Resources

a.      GREET: Greenhouse gases, Regulated Emissions, and Energy use in Transportation: An ANL model that evaluates the energy and emission impacts of alternative fuels and advanced vehicles, the fuel cycle from wells-to-wheels, and the vehicle cycle through material recovery and vehicle disposal.

b.      AFLEET: Alternative Fuel Life-Cycle Environmental and Economic Transportation: An ANL spreadsheet tool that estimates petroleum use, GHG and air pollutant emissions, and cost of ownership of AFVs and conventional vehicles, using simple spreadsheet inputs.

c.      PREP: Petroleum Reduction Planning: An online tool that helps fleets create a comprehensive plan to reduce petroleum consumption and GHG emissions.

d.      VICE: Vehicle and Infrastructure Cash-Flow Evaluation: An NREL spreadsheet model for fleet managers to assess the financial soundness of converting their fleets to run on CNG.

9.      Federal Programs

a.      CAFE: Corporate Average Fuel Economy: DOT standards to improve the fuel efficiency and emissions of new on-road motor vehicles.

b.      CMAQ: Congestion Mitigation and Air Quality Improvement: A DOT program that provides funding for projects and programs to reduce transportation-related emissions.

c.      RFS: Renewable Fuel Standard: An EPA program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels to reduce GHG emissions.

                                        i.     RINs: Renewable Identification Numbers: Credits used for compliance with the RFS.

10.   Key Federal Legislation

a.      CAA: Clean Air Act of 1970: Defines EPA’s responsibilities for protecting and improving air quality. CAA authorizes the development of comprehensive federal and state regulations to limit both stationary and mobile emissions sources.

b.      EPAct: Energy Policy Act: EPAct 1992 encourages the use of alternative fuels through both regulatory and voluntary activities that DOE carries out. It was amended several times, including via EPAct 2005.

c.      EISA: Energy Independence and Security Act of 2007: Aims to improve vehicle fuel economy and reduce United States dependence on petroleum. EISA includes provisions for the RFS and CAFE standards.

d.      ARRA: American Recovery and Reinvestment Act (Recovery Act) of 2009: Appropriates investments in energy independence and renewable energy technologies, including Clean Cities and other grant programs.

Bonus

TRS: Technical Response Service: Sometimes you even need an acronym to figure out an acronym! That’s where the TRS comes in. For assistance with technical questions about alternative fuels and advanced vehicles, email the TRS at technicalresponse@icfi.com or call 800-254-6735.

Clean Cities Technical Response Service Team

technicalresponse@icfi.com

800-254-6735

January Question of the Month

Question of the Month: How many gas gallon equivalents (GGEs) of petroleum were reduced through Clean Cities Coalition efforts across the nation in 2014?

Answer: Clean Cities Coalition and their stakeholders averted more than 6.8 million tons of greenhouse gas (GHG) emissions and 658 million gasoline gallon equivalents (MGGEs) of petroleum in 2014 alone. Coupled with fuel saving from National Clean Cities Programs a total of 1,021.5 billion GGEs of petroleum were displaced in 2014. 

Each year, U.S. Department of Energy Clean Cities coordinators characterize the membership, funding, projects, and activities of their respective coalitions. After evaluation and analysis, the National Renewable Energy Laboratory (NREL) summarizes and publishes these findings. The latest summary of the data is now available in the Clean Cities 2014 Annual Metrics Report.

The Clean Cities 2014 Annual Metrics Report includes data submitted about sales of alternative fuels; deployment of alternative fuel vehicles, plug-in electric vehicles and hybrid electric vehicles; idle reduction initiatives; fuel economy activities; and programs to reduce vehicle miles traveled.

Clean Cities' petroleum-use reduction in 2014 led to a substantial reduction in GHG emissions, the pollutants that contribute to climate change. Coalition efforts averted more than 6.8 million tons of GHG emissions in 2014. In addition, coalition efforts saved nearly 658 MGGEs petroleum in 2014 alone—19% higher than the reported petroleum savings total in 2013.

As of 2014, Clean Cities has saved more than 7.5 billion gallons of petroleum and more than 48 million tons of GHG emissions since its inception in 1993.

The increased use of alternative fuels and the deployment of alternative fuel vehicles (AFVs) accounted for the most substantial displacements of GHG emissions and petroleum. In 2014, the use of alternative fuels and AFVs, in addition to hybrid electric vehicles (HEVs) and plug-in electric vehicles, helped avert more than 2.1 million tons of GHG emissions. These savings are equivalent to removing 464,992 cars from the road.

Alternative fuels (used in AFVs and in biodiesel blends) and HEVs also accounted for approximately 553 MGGEs in 2014, or 86% of the total petroleum savings. This was an increase of 19% over the amount of petroleum that was saved in 2013. In 2014, the average AFV saved 859 GGEs of petroleum and avoided 3.3 tons of GHG emissions—a 10% and 2% (respectively) increase from 2013.

For more information, read the full report or see the Clean Cities Goals and Accomplishments page

Kendall Septon, National Renewable Energy Laboratory
Clean Cities Technical Response Service Team
technicalresponse@icfi.com
800-254-6735