Sept. 25, 2012 | Martin B. Sennett, General Manager CNG: Energy of the Future?

Cost of Bus Type of BusPrice Standard Diesel$400,000 Hybrid Diesel/Electric$600,000 Compressed Natural Gas (CNG) $450,000

Cost of Fuel Type of FuelPrice Diesel$3.11/gallon CNG with station$2.20/DGE CNG without station$1.50/DGE

Historical Price of Diesel YearPrice/gallon% Increase 2007$ $ % 2009$ % 2010$ % 2011$ % 2012$ %

Average Increase $2.05 to $ % (average over 5 years)

Additional Costs Type of BusCapitalOperating Standard DieselNoneUrea after treatment Hybrid Diesel/Electric $150K mid-life to rebuild Urea after treatment CNG$2 million fueling station + $19K mid- life to rebuild No after treatment

Hybrid Diesel Electric Option Year% Diesel Buses % Hybrid Buses # of Hybrid %27% %49% %58% %73% %84%61

Hybrid Bus Purchases YearHybrid BusHybrids Purchased Eng/ Tran Rebuild Total Capital 2013$630,00040$2,520, $694,57520$1,389, $844,26020$1,688, $1,026,2042$655,636$2,708, $1,247,3572$737,924$3,232,638 Total for 15 years41$5,335,402$46,400,000

15 Year Fuel Cost with Hybrid Option YearDiesel Miles Hybrid Miles Diesel Gallons Hybrid Gallons Cost Per Gallon Diesel Total Annual Cost 20121,306,849493,151311,15589,664$3.11$1,246, ,329887,671217,2211,619,395$4.99$1,850, ,8081,282,192123,288233,126$8.85$2,950,000 Total for 15 Years$31,600,000

CNG Option Year# Hybrid# CNG# Diesel

National Renewable Energy Laboratory Report The following 6 charts are from this report.

Energy Information Administration (EIA) - Official Energy Statistics from the U.S. Government.

Fuel Consumption with CNG Option YearDiesel Miles Hybrid Miles CNG Miles Diesel Gallons Hybrid Gallons CNG (DGE) Gallons 20121,306,849493, ,15589, ,781493,151715,068140,90089,664174, ,26001,602,74046, ,912

15 Year Fuel Cost (without financing) YearCost Per Gallon Diesel Total Diesel Cost Cost Per Gallon (DE) Total CNG Cost Total Fuel Cost 2012$3.11$1,246, $4.99$1,106,654$2.25$419,683$1,526, $8.58$705,254$3.87$1,372,404$2,077,658 Total for 15 Years$25,348,156

15 Year Fuel Cost (with financing) YearCost Per Gallon Diesel Total Diesel Cost Cost Per Gallon (DGE) Total CNG Cost Total Fuel Cost 2012$3.11$1,246, $4.99$1,151,432$3.35$583,560$1,734, $8.58$403,002$5.75$2,247,351$2,650,354 Total for 15 Years$29, 758,153

CNG Capital Costs YearCNG Bus CostCNG Purchased Eng/Tran Rebuild Total Capital 2013$472,50070$3,307, $520,93130$1,562, $633,19540$2,532, $769,6534$174,836$3,253, $935,5185$196,780$4,874,368 Total for 15 years65$1,422,774$46,089,867

Summary Options15 Year Fuel Cost Capital CostAdditional Op. Costs Hybrid Diesel $31,600,000$46,400,000 ? CNG Option 1 $29,800,000$46,089,867None CNG Option 2 $25,350,000$48,089,867None

Internship available! Contact: Martin B. Sennett