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home refueling and costs upwards of $4,500 to purchase and install, though some companies are attempting to bring this cost down to $500.jj There are approximately 3,200 LNG vehicles on the road today in the United States, utilizing 54 fueling stations, about half of which are public. Many of these vehicles are long-haul, heavy duty freight trucks with longer ranges than CNG vehicles but still shorter than diesel-fueled freight trucks. High mileage and low LNG gallon diesel-equivalent (GDE) costs can result in significant fuel cost savings over the lifetime of a freight truck. LNG suppliers typically offer long-term fuel price contracts, guaranteeing fuel costs for the lifetime of a truck (up to five years), regardless of LNG market price fluctuations. The process of conversion from natural gas to LNG removes water, carbon, and sulfur, resulting in fewer emissions upon combustion than CNG. However, from a life cycle standpoint, carbon emissions are slightly higher than CNG due to the energy intensive liquefaction process.129 For both technologies, the utilization of biomethane from landfill gas or anaerobic digesters, as opposed to conventional natural gas, yields significant life cycle emissions reductions.kk 4.3 RelevantTransportationPolicies 4.3.1 Fuel Economy Standards The current Corporate Average Fuel Economy (CAFE) requirement for small to mid-size passenger vehicles is 36 MPG. The Obama administration recently came to an agreement with automakers to increase fuel efficiency to a fleet-wide average of 54.5 MPG for cars and light- duty trucks by 2025.130 Carmakers use an air conditioner refrigerant leak reduction credit as a partial means of compliance, so the fleet-wide fuel efficiency target is closer to 49 MPG. On August 28, 2012, in an effort to promote and incentivize the penetration of certain “game- changing” vehicle technologies, the EPA and Department of Transportation released a ruling that grants electric, fuel cell, and CNG vehicle sales an increased CAFE compliance multiplier factor of 1.6–2 times their normal values in fleet-wide average fuel economy calculations for model years 2017 to 2022.131 4.3.2 Biofuel Production and Blending Incentives Federal policies for biofuels include blending tax credits, import tariffs, minimum renewable fuel usage requirements, loan and loan guarantee programs, and research funding. The RFS has been particularly impactful, creating a guaranteed market for producers by requiring 36 billion gallons of renewable fuel to enter the national transportation fuel supply in the year 2022 with annual requirements ramping up to the target year. The requirement caps eligible corn-starch-based ethanol production at 15 billion gallons, leaving the remaining 21 billion gallons to be supplied by cellulosic biofuels, biomass-based biodiesel, and other advanced biofuels, with a minimum mandate for cellulosic biofuels of 16 billion gallons by 2022.132 jj General Electric Co. is utilizing an ARPA-E grant to develop in-home refueling equipment at a targeted cost of $500 (“Trucks Do It, Fleets Do It, Let’s Pump Natural Gas.” General Electric Reports. Accessed August 30, 2012: http://www.gereports.com/trucks-do-it-fleets-do-it-lets-pump-natural-gas/). kk LNG and CNG vehicles using traditional natural gas have life cycle emissions reductions of 12% and 28%, respectively, compared to diesel. If landfill gas is used, reductions are estimated to be 77% and 88%, respectively (“Table 6: Carbon Intensity Lookup Table for Gasoline and Fuels that Substitute for Gasoline.” California Air Resources Board, 2010. Accessed August 30, 2012: http://www.arb.ca.gov/fuels/lcfs/121409lcfs_lutables.pdf). 32PDF Image | Opportunities Synergy Natural Gas and Renewable Energy
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