1. Clean Cities / 1 Alternative Fuel Opportunities Ahead Alleyn Harned Virginia Clean Cities

2. Clean Cities / 2 Opportunity of alternative fuels – Jobs, security, environment, choice Governor signs legislation and Executive Order beginning transition of state vehicles to alternative fuel on July 12, 2011 Millions in investment for alternative fuels at state level Nation’s largest propane autogas deployment project Comprehensive EV planning effort statewide and in Richmond 3 rd party sales for electricity for Evs and nighttime off peak rates Alternative Fuels Virginia Alternate Fuel Leadership - McDonnell

3. Clean Cities / 3 Carbon Monoxide (CO) –Cardiovascular disease, damage nervous system 56-95% of US CO is emitted by vehicles Nitrogen Oxides (NOx) –Respiratory damage – autism link - 55% from vehicles Particulate Matter (PM) –Aggravate asthma, emphysema, bronchitis, heart disease, lung disease, water pollution – directly from vehicles Ozone –Smog – reduce lung function Greenhouse Gases (GHGs) –Global pollutant, CO 2 most abundant WHY - Health and Environment

4. Clean Cities / 4 Rising Petroleum Prices U.S. Owns 2-3% of world oil reserves U.S. Uses 25% of worlds oil Volatility of Petroleum Market –2013 highest fuel costs on record in U.S. –Significant production domestically, but 50% imports Survey Finds 62% of Fleet Managers Plan to Purchase More Fuel-Efficient Vehicles in 2013 –70% of respondents think fuel cost may go up in 2013 CHOICE Oil Dependence

5. Clean Cities / 5 Reducing Petroleum Consumption Petroleum = most consumed energy source in U.S. About half of petroleum used is imported U.S. spends $1 million per minute on petroleum $Nearly one billion per day on petroleum imports $297 billion per year on petroleum imports VA transportation 99 % petroleum - gasoline diesel $13.4 billion a year in VA on petroleum for transportation Statistically, 100% of our oil is out of state (99.98%) 90,758,000 barrels imported, 12,000 produced (2011 EIA) $35 million a day leaves the Commonwealth Oil Dependence

6. Clean Cities / 6 Figure 2: Primary energy consumption by Source and Sector

7. Clean Cities / 7 33 State Picture

8. Clean Cities / 8 Platinum Level Sponsors & Strategic Partners One designated statewide Coalition in Virginia - since 1996 501c3 not-for-profit & James Madison University partnership Supported by stakeholder members, DOE, DMME, and grants Managing alt fuel deployment and education programs on behalf of governments, fleets, and other stakeholders Strategies: Partner with States & Local Organizations, Public and Private fleets Provide Outreach, Education, & Information Resources Facilitate Infrastructure Development Provide Technical & Financial Assistance Virginia Clean Cities Snapshot

9. Clean Cities / 9 Alternative Fuels: What’s Included ? Technology Portfolio – Assistance of VA Clean Cities: Alternative (non-petroleum) Fuels & Vehicles Biodiesel, Ethanol, Hydrogen, Electric, Propane, Natural Gas Advanced Vehicles (e.g., HEVs, PHEVs) Vehicles and Driver Choices that Increase Fuel Economy Idle Reduction 2012 Green Fleet effort 9.2 million gasoline gallon equivalent reduced 70,000 tons of GHG reduction Virginia’s Growing Alt Fuel Effort 286 Alt Fuel Stations (+100 in ‘12) 80 fleets with Alt Fuel Vehicles 15,206 Alt Fuel Fleet Vehicles

10. Clean Cities / 10 http://www.afdc.energy.gov/locator/

11. Clean Cities / 11 http://www.afdc.energy.gov/locator/

12. Clean Cities / 12 Biodiesel Biodiesel – 4,620 vehicles, 36 stations in VA –Renewable fuel produced by processing vegetable and animal fats –Often blended with diesel at levels from 5% to 20% biodiesel –Works with practically any diesel engine, little/no modification –Three active producers in Virginia, made around 2 million gallons

13. Clean Cities / 13 Ethanol and E85 Ethanol - E85 – 7058 fleet vehicles, 22 stations (13 public) in VA –A renewable alcohol fuel, blended with gasoline –10% ethanol can be used in most vehicles without modification –15% blends OK for 2001 and up vehicles –E85 –85% blended with 15% gasoline –Compatible with 9 million Flex Fuel cars on the roads today ½ of Ford and GM’s lineup

14. Clean Cities / 14 LPG – Propane -Autogas Propane – LPG - Autogas LPG, 70 stations, 430 vehicles Inexpensive Fuel ($2.21/gal) Save $1 to $2 a gallon Vehicles run on propane, tanks are higher capacity than your home grill, but same fuel 85% of propane is domestic resource Get autogas rate, not grill rate

15. Clean Cities / 15 Natural Gas Natural Gas, 1300 fleet vehicles, 17 stations in Virginia Vehicle runs on compressed or liquid natural gas from pressurized tank Fewer emissions, and 75% less nitrogen oxides Local domestic fuel - $2.39 is recent public price in Richmond VA Potential for landfill renewable gas projects (95% fewer emissions) Bi-Monthly calls with state regional project reports - great interest New stations (Richmond, Dulles, Norfolk, Chesapeake VA)

16. Clean Cities / 16 Electric  Three groups of EVs:  Hybrid electric vehicles (HEVs)  Plug-in hybrid electric vehicles (PHEVs)  Battery-powered electric vehicles (BEVs)  All EVs utilize electric motors and energy storage systems  Each type offers different advantages  Battery life, charge time  Electricity production may still produce emissions  EV battery/tech price vs. conventional vehicle price

17. Clean Cities / 17 Clean Cities Web Resources Clean Cities AFDC FuelEconomy.gov