1. Natural Gas Vehicles in Southern California Southern California Gas Company Urban Water Institute Spring Water Conference February 21, 2013

2. 2 Why Natural Gas Vehicles? When used as a transportation fuel, compressed natural gas (CNG) has many advantages: Low cost Large scale, domestic supplies Proven technology, available today Superior environmental performance o Reduced GHG emissions o Lower criteria pollutants o Renewable sources available (bio-methane)

3. 3 Low Cost

4. 4 Large Scale, Domestic Supplies New technological advancements have “unlocked” the ability to produce gas from deep shale rock formations – the most common type of source rock around the world Current American supplies of natural gas provide a supply large enough to last our country for 100 years or more. America’s abundance of natural gas provides our country with: A low-carbon energy resource A domestic energy solution o Providing America with increased national security o Providing American jobs that stimulate the economy and dramatically reduce the transfer of wealth on imported oil A low-cost transportation fuel

5. 5 Proven Technology, Available Today CNG vehicles are available today for light, medium, and heavy- duty applications In Southern California alone, over 6,000 heavy-duty CNG vehicles are currently in operation at almost 300 CNG stations: Transit agencies, refuse haulers, street sweepers, school districts, municipalities, goods movement

6. 6 Proven Technology, Available Today (cont’d)

7. 7 There are nearly 300 CNG stations in operation in Southern California and many provide public access…

8. 8 Superior Environmental Performance Reduced GHG emissions: “Wells to wheel” GHG reduction of 20% to 30% compared to gasoline and diesel Lower criteria pollutants The Cummins ISL-G, powered by natural gas, is a heavy-duty CNG engine that met the ultra-low 2010 emission standards for NOX and PM three years ahead of schedule.  PM certified 80% below standard, NOX certified 35% below standard Cummins is currently developing engine technologies that will reduce NOX more than 75% below the current 2010 standard! CNG Honda Civic  Classified by CARB as a AT-PZEV (Advanced Technology Partial Zero- Emission Vehicle)  Won "Greenest Vehicle" by the American Council for an Energy Efficient Economy (ACEEE) eight years in a row.

9. 9 Superior Environmental Performance (cont’d) Renewable sources available Bio-methane can be produced from sources of waste “Wells to wheel” GHG reduction of up to 88% compared to petroleum based fuel

10. 10 SoCalGas/SDG&E NGV Program The SoCalGas/SDG&E NGV Program provides customer information, education and training related to the operation and fueling of CNG vehicles. –Gas service options (new service) –Traditional utility information (tariffs, PUC rules, billing) –NGV Basics (introduction to NGVs, refueling station locations) –Applicable Federal, State, and Local Rules and Regulations  Federal Tax Credits  CARB Fleet Rules, CARB ZEB Rule, AB 32, LCFS  SCAQMD Fleet Rules –Safety (vehicles, refueling stations, maintenance facilities) –Grant Funding (federal, state, and local) –Product (vehicles, engines, refueling equipment, vendors) Eight (8) dedicated, full time employees