Title
Compressed Natural Gas (B)
This is a request for the City Commission to hear a presentation on the implications of Compressed Natural Gas (CNG) fueling by the Regional Transit System (RTS).
**Estimated Staff Presentation 15 Minutes**
Explanation
On February 11, 2016, Regional Transit System (RTS) staff presented to the Recreation, Cultural Affairs, and Public Works Committee their findings on the impacts of transitioning the RTS fleet to Compressed Natural Gas (CNG). RTS recommended and the Committee agreed that the presentation should be brought before the entire City Commission for review.
Nationwide, the use of alternative fuels in transit buses has increased over 300% in the last 15 years with over 40% of agencies now utilizing alternative fuels. RTS staff was tasked with conducting a comprehensive cost study on alternative fuels options for RTS.
The main findings of this study include:
* Compared to the base diesel scenario, the energy costs of CNG are so low that even after accounting for its higher capital and O&M costs the average cost savings per bus per year is more than $13,000.
* The total cost per bus per year for hybrid and electric buses, is $10,560 and $4,944 (respectively) higher than the base diesel scenario.
* Electric buses offer comparable energy saving as to CNG buses and offer much lower O&M costs than all other fuel sources, but their high capital cost makes them not cost effective.
* Initially two CNG implementation scenarios were considered. One explored a procurement scenario where RTS’s maximum fleet age remained constant and the other explored a procurement scenario where capital expenditures remained constant.
* Under the fixed maximum age scenario, cumulative net savings are over $43 million constant 2016 dollars by year 2045. At the end of year 2029, which is 13 years into the project, annual savings from employing CNG buses pay off anticipated financing (principal and interest) requirements.
* Under the fixed capi...
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