CITY FURNITURE - CNG CONVERSION May 13, 2015

BACKGROUND INFORMATION

Background Information Increasing Fuel Prices

Background Information What is CNG? Compressed Natural Gas is natural gas that is compressed so that it can be stored in cylinders. CNG is often used as a temporary fuel source or as a clean-burning alternative to vehicle fuel. Think of CNG like a propane tank for a gas grill: a sealed pump transfers the gas from the station to tanks in the vehicle. It’s plentiful and easier to produce than diesel. CNG is also one of cleanest fuels currently available for use in heavy-duty trucks. Its use reduces particulate matter emissions up to 86%, carbon monoxide emissions by 80%, nitrogen oxide emissions by up to 32%, and carbon dioxide emissions by 25%. It’s storage pressure is 3,600 PSI. 1 gallon equals 5.66 lbs. CNG is 139,000 (DGE) BTUs. Florida Retail Price CNG is $2.20 vs. $4.00 Diesel (DGE) (Ex. Wise Gas & Waste Management) On-Site Station DGE = $1.10 to $1.50 (approximate)

Background Information

Federal & State Incentives to Convert to CNG Federal 30% for Infrastructure Spending (up to $30,000) $0.50 per DGE Tax Credit State Fuel Tax for Alternative Fuel Vehicles = $385 Annual Up to $25,000 tax credit per CNG converted vehicle or up to $250K per year

CURRENT CONDITION

CNG Station Tru Star energy 2 Compressors 4 hours for complete fill 3600 PSI per tank

Isuzu NPR Eagle Truck Center – La. IMPCO – Mich. Morgan Box – FL Modified Frame 14,500 GVW – 1800 GVW CNG Conversion to Bi-Fuel

Current Condition – City Furniture Fleet Maintenance Mechanics = 3 Fleet – 97 Total Trucks in the Fleet 5 - Dedicated CNG Isuzu NPR HD’s (on order) – Bi-Fuel Gas/CNG Isuzu NPR HD’s 30 – Diesel Nissan UD 2600’s 2 – Diesel Nissan UD 1300’s 2 – Service Vehicles 1 – Tractor 2 – Yard Spotters 2014 miles driven – over 3.9 million 2014 fuel consumption – 562,953 (Gallons/GGE) Diesel – 27.2% Gasoline – 24.8% CNG – 48% On-Site Time Fill CNG Fueling Station with the following: 2 Compressors 50 Time Fill Posts

Pros and Cons Pros Truck Design Clean energy Fuel Costs $2.10 DGE Reduced maintenance costs Supply Cons Infrastructure for CNG Smaller truck (100 less cubes) No local repair facilities Range of vehicles

Future State 100% Conversion of Fleet to CNG 100% Consumption of CNG Public access to our station with a Quick Fill option