ENVIRONMENTAL PROTECTION

AGENCY
                     SPECIAL REPORT
               OFFICE OF MOBILE SOURCES
         Analysis of the Economic and
      Environmental Effects of Compressed
         Natural Gas as a Vehicle Fuel

                 Volume I

        Passenger Cars and Light Trucks


                  April 1990

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     This  report  addresses  the   economic   and  environmental
issues associated with  the use of  compressed natural gas  as  a
motor vehicle  fuel.   Volume  I analyzes  the use  of  compressed
natural  gas  as  a  fuel  for passenger  cars  and  light  trucks.
Volume  II considers  the  use of  compressed natural  gas  as  a
heavy-duty vehicle fuel.

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Analysis of the Economic and Environmental Effects
    of  Compressed Natural Gas as a Vehicle Fuel
                     Volume I
         Passenger Cars and Light Trucks
                    April  1990

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                        Table of Contents
                                                           Page
ECONOMIC ASPECTS OF COMPRESSED NATURAL GAS USE ......   1
     Current Natural Gas Prices  .  .	   1
     Dual-Fuel Conversion and Dedicated Vehicle Costs  .   .   6
     Service Station Retrofit Costs  	  12
     Pipeline Expansion Costs	 .  .  .   .  16
     Capitalized Distribution Costs  ...........  17
     Gasoline Equivalent CNG Retail Price  	  19
ENVIRONMENTAL IMPACTS OF CNG USE	  25
    .Urban Ozone Levels  ........... 	  25
     .Carbon Monoxide and Oxides of Nitrogen	.   .  28
     Air Toxics and Global Warming	33
OTHER ISSUES 	 ...............  39
     Safety	39
     Reduced Maintenance .  . .  . :	   .  40
     Performance and Fuel Economy	  40
     Vehicle Range	  43
     Impact On Home Heating  .	49

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                             PREFACE


     In  July  1989,  the  President submitted  to  Congress  his
Administration's proposals for  revising  the Clean Air Act.  One
major  component of  his  plan  is  the Clean Alternative  Fuels
Program.   This program  would  replace  a portion  of  the  motor
vehicle  fleet in  certain cities  with  new  vehicles  that  meet
stringent  exhaust  emission  limits operating  on  clean-burning
fuels  such   as  methanol,   ethanol,  compressed  natural   gas,
liquefied petroleum gas, electricity,  and reformulated gasoline.

     This  report,   released   by EPA,  is  one  in  a  series  of
reports  that  discuss the   economic  and  environmental  issues
associated with each of these clean-burning alternative fuels.

     This  report  discusses  natural  gas use in cars  and  light
trucks.   This  application  is  emphasized  because  the  first
report in  this series, the  subject of which was methanol, also
concentrated its emphasis on cars and light trucks.

     Because natural gas has special features that also make it
attractive for  urban heavy-duty fleet  applications, the Agency
has prepared another  report specifically  treating the use  of
CNG in heavy-duty  vehicles.   This  Volume II report is available
under separate cover.

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 ECONOMIC ASPECTS OF COMPRESSED NATURAL GAS USE

 Current Natural Gas Prices

      The current  U.S.  highway vehicle  fleet is almost  totally
 dependent"   on  petroleum-based   fuels, [l.]    Alternatives   to
 petroleum-based motor vehicle  fuels (i.e.,  gasoline  and Diesel
 fuels)  are  of  interest  for  two  separate  reasons.    First,
 alternative fuels  may  contribute to a  solution to air  quality
 problems in the United States.   A  Vice Presidential  Task  Force
 Report issued  in  1987  [2]  detailed how the use of  various neat
 and blended  alternative  fuels  might contribute to  a  strategy
 designed to  achieve  the  air  quality  goals of the  Clean  Air
 Act.    President   Bush's   Clean  Air   Act  proposals   contain
 provisions   for  widespread  . utilization  of   alternate  motor
 vehicle fuels including natural gas.  Second,  fuel  substitution
 in the transportation sector could  curb imported oil  demand and
 help   to  restrain  price  rises  as  well  as  assure  a  reliable
 supply of oil from abroad.[3]

     Natural   gas,  .a.;, gaseous  .hydrocarbon ..fuel,   is  composed
.-primarily  of  methane  (CH«),  but  it  may  contain  up  to  20
.•percent higher weight;/hydrocarbons. [4]   These  hydrocarbons  are
 primarily ethane,  propane, and butane.   Minor  other  constituents
 include  nitrogen,   carbon  monoacide,   hydrogen   sulfide   and
 helium.   Natural  gas in compressed  form (CNG) as an  automotive
 fuel is the subject of this report.

     One  of the most important factors  impacting the  use of CNG
 as an  automotive  fuel isu the price of  natural gas fuel.   A
 nominal value  for  the .net heating value of Indolene  fuel  has
 been   reported as   114,132  BTTJ/gallon. [5]   The   price  of  a
 gasoline  energy equivalent of CNG at  the retail  price level,
 even  for competing uses  in  the absence of  a significant  CNG
 motor   fuel   market,  would  be   one   indiccition  of   CNG's
 attractiveness  to  the consumer  as  an   alternate transportation
 fuel.

     Natural  gas  prices  are  typically  presented  in  terms  of  a
 price  per  unit ..volume,  or  I/cubic  foot. [6]   To  convert, to
 I/energy  equivalent, .a  factor for  energy content  per  standard
 volume of natural .gas must be used.   The CNG  fuel used  in an
 earlier EPA report [7]  had a calculated higher heating value of
 1010 to 1032 BTU/SCF.  The  American Gas Association in  a recent
 publication [8] listed  1031 BTU/SCF as  a reference value for
 natural  gas passing  through major  interstate  pipelines.   The
 heating value changes for  CNG as  its  composition  changes;  for
 ease of comparison, however, a  value of  1030 BTU/SCF was used
 here.

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                               .—2—


     One  frequently quoted  index  of  wholesale  prices  is  the
price  major  interstate  gas  pipeline  companies  pay  for  gas.
This price -has  two components:'-  1)  the price  of  imported gas,
and  2) the  price  of  gas  purchased  from domestic  producers.
Table  1 contains a summary of price data  for  the years 1980-88
and  the first  eight  months  of  1989.   This data,  presented in
$/1000  SCF,  was  taken  from  the  Monthly  Energy  Review,  a
Department of Energy  publication.[9]   The conversion to $/mmBTU
was  accomplished by using  the conversion factor  of  about 1030
BTU/SCF.  To  obtain an energy equivalent price based  on lower
heating value, the prices which used higher  heating values were
divided by  0.90.  An explanation  of  this calculation  has been
given in an earlier EPA publication. [7]  The data  in  Table 1 is
presented in terms of 1989 dollars.

     At an  average 930 BTU/SCF  lower  heating  value  of natural
gas,  approximately 123  SCF  of natural  gas  would  provide  an
energy  equivalent of  1 gallon of  gasoline.   The current prices
in Table 1 may  be considered a crude index of  gas cost which a
wholesaler  pipeline  company  would use  to  base  his  delivery
price to a retail operation.   Using the average purchase prices
listed  for  1989, .the ..current1 cost to  a  pipeline  company for a
.natural:gas thermal equivalent of  1 gallon of  gasoline  would be
26  cents.   This .estimate .  ignores . cost  changes .that  might  be
associated with increased-natural ;gas usage  as a .transportation
fuel   such   as   operating   expenses,   capital  recovery,   and
alternate sources of gas,  however.

     Another index of interest is  the price of gas delivered to
various categories  of end users.  Table  2 contains the average
price of gas  delivered  to  residential,  commercial, industrial,
and  electric  utility  users over the same time periods  referred
to in Table 1.   The data  in  $71000 SCF was taken from Monthly
Energy Review [9]  and converted to $/mmBTU using the conversion
factor given in reference 8.  The  conversion to prices  based on
the  lower  heating  value  for  natural  gas   is  explained  in
reference 7.

     The prices  in  Table  2  for 1989 range from $2.61/mmBTU for
delivery to electric  utilities to $6.49/mmBTU, for residential
end  users.  .The  residential  delivered prices may be  relevant
for  a  .scenario  which involves refueling, vehicles  with natural
gas  overnight using  a home-based compressor.   Commercial  or
industrial  prices  may  be  more  relevant  for  customers  who
purchase large volumes  of natural  gas,  such as  large fleets  or-
refueling stations.

     The prices  for delivery  to consumers vary considerably by
region within the United  States.   The  American Gas Association
[8]  has published  average  U.S. consumer  gas  prices by region
for  the quarter ended December  31,  1988.  For residential  end
users,  these  prices,  based  on higher  heating values,  varied

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                             -3-
                             Table 1

                   Average Natural Gas Prices
        Major Interstate Pipelines Average Purchase Price

           Higher/Lower Heating Value Prices (1989 $)
                                        Purchased From Producers
    Year            Imports  ($/mmBTU)    	($/mmBTU)	

    1980              6.39/7.10                 2.36/2.62

    1981              6.38/7.09                 2.84/3.15

    1982              6.12/6.80                 3.37/3.75

    1983              5.38/5.98                 3.50/3.88

    1984              4.70/5.22                 3.35/3.72

    1985              3.57/3.96                 3.19/3.54

    1986              2.75/3.06                 2.60/2.89

    1987              2.29/2.54                 2.21/2.46

    1988              2.06/2.29                 2.17/2.41

    1989 (Jan-Aug)    1.96/2.18                 2.07/2.30
iranBTU = Million BTUs.

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                                 -4-
                              Table 2
           Average Price -of Gas Delivered To Consumers
Higher /Lower Heating Value Prices
Values Given In $/mmBTU, Adjusted
Year
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
(Jan-
Aug)
Resident rial
5.32/5.92
5,66/6.29
6.41/7.12
7.23/8.03
7.05/7.83
6.84/7.60
6.35/7.05
5.84/6.48
5.59/6.21
5.84/6.49
Commercial
4.90/5.45
5.28/5.86
5.98/6.64
6.67/7.41
6.39/7.10
6.15/6.83
5.53/6.14
5.02/5.58
4.73/5.25
4.61/5.12
Industrial
3.70/4.12
4.14/4.60
4.80/5.33
4.99/5.54
4.86/5.40
4.42/4.91
3.52/3.91
3.10/3.44
3.01/3.35
2.81/3.12
To 1989 $
Electric
Utilities
3.28/3.65
3.81/4.24
4.31/4.79
4.27/4.75
4.26/4.73
3.97/4.41
2.65/2.94
2.44/2.72
2.39/2.66
2.35/2-61*
Overall
Averages
4.21/4.68
4.63/5.14
5.36/5.95
5.75/6.39
5.58/6.20
5.28/5.86
4.50/5.00
4.27/4.74
4.18/4.64
4.01/4.45*
mitiBTU = Million BTUs.
*    January - July 1989 only.

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                               -5-


 from  $4.49/rnmBTU to $7.04/mmBTU, with  the higher prices  found
 in  the northeast  region  of the  U.S.   It  may  be  expected,
.therefore,  that  prices of  natural  -gas  for vehicle fuel  usage
 could  vary considerably by region  because of  differences  in
 prices  of  gas from various sources, pipeline distribution,  and
 operating costs.  In addition, the  spot  market  for natural  gas
 can be low,  thus  offering some price  advantages,  but  by  its
 very  nature  the spot  market  price may  not   be  a  reliable
 indicator  of  high continuous demand such  as  that provided  by
 vehicular use.               !      .

      An earlier U.S.  EPA Special  Report  [10] has noted that  the
 price  at which natural gas is  available is dependent upon  the
 price of competing energy sources,  the existence of  alternative
 markets for  gas, and  the  cost  of  collecting and  transporting
 the gas.  In more remote regions, such as Prudhoe, Bay, Alaska,
 natural gas  is coproduced  with  oil  and is  reinjected back into
 the wells at  a cost  because at   current  and expected prices  it
 is not  economic  to  produce and  transport this "remote" natural
 gas.   A presentation by SRI  International  [11]  quoted  in  the
 aforementioned Special  Report  [10]  assumed  that  natural  gas
.could  be-available  .at  Prudhoe  Bay  for   less .than  $0.50/mmBTU
 over  the  next 20 -years.    A  recent  U.S.  DOE  analysis  [12]
.suggests that  prices .ranging  .from  $0.50-1.00/mmBTU for  remote
 natural gas appear-reasonable.

     The overseas  transportation  and  port  costs  to receive
 remote natural gas in  the  form   of  liquefied  natural gas  (LNG)
 may be  considerable,  however.   DeLuchi,  et  al.,  in  a  recent
 comprehensive analysis  of  resource  supply issues  relating  to
 natural gas vehicles, [13]  stated that the high capital cost of
 liquefaction plants,  competition for  the gas between  importing
 nations,   and  uncertainty  over  the  size  of   reserves  have
 increased  the  price  of LNG from remote natural  gas.   .At  the
 domestic   level, .  natural   gas  prices   necessary   to   make
 substantial  increases in the "amount  of  imported LNG attractive
 might  make the recovery of unconventional  reserves  of domestic
 natural  gas  competitive in  price.    DeLuchi  [13]  states  that
 both  the  American Gas  Association  (AGA)  [14]  and the  Energy
 Information  Administration  [15]  project negligible  increases in
 the amount  of  LNG imports over the next  10 to  25  years.

    - Assuming   that  the  importation  of  LNG  was  economically
 desirable,  the U.S.  could  not import more than  1 TCP/year  at
 present. [13]   Only one U.S. LNG  terminal is now in  service, at
 Everett,  Massachusetts.  Three  other facilities,  in  Maryland,
 South  Carolina,  and  Louisiana,   are  currently on  standby.   DOE
 has  stated  that  a considerable   expansion of  terminal  capacity
 and  corresponding infrastructure would  be  required  for a major
 expansion  of LNG imports  into the  U.S. [12]  DeLuchi  [13]  also
 notes  that  the U.S.  public  generally opposes new  LNG  terminals
 on safety  grounds, though  some   experts   argue that such  risks
 are very small.

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      The  U.S.  Department of  Energy (DOE)  is studying natural
 gas pricing with  respect to  a natural  gas vehicle market, which
 may  expand significantly as  a  result of  the Administrator's
 proposed Clean Air Act Amendments.  AGA has published projected
 natural gas  fuel  prices  to  the year  2005;  [16] a  portion of
 their projections are reproduced here as Table 3.

      Table 3  projects the  price  of  natural  gas delivered to
 service stations  in the year  1995  in  1989 dollars.   The prices
 listed take  into account distribution margins and  incorporate
 wellhead price  projections.   Price projections   are  given  for
 eight   separate   regions;    these   regions   might   benefit
 substantially  from  the  introduction  of   alternative  fuels
 because of higher ozone concentrations.[16]

      No  attempt   is  made  here  to weight price according to
 projected sales volumes by region.   The prices range from a  low
 of $2.59/mmBTU (lower heating value) in Texas to  $5.89/mmBTU in
 Connecticut.   A simple  average among the regions  listed here is
 $4.66/mmBTU.   These  prices   are used  later  in this report to
 develop a cost to consumers  for natural gas vehicle fuel.   The
 .range..of .prices .above:,approximates ..the current low  utility  and
 higher  commercial . use  price .;range given  .in Table 2.   The  AGA
.has .also  made an attempt -to.-predict  differences in gas price
 .based-.on - geographic location.   :The -geographic  locations   are
 major urban areas where  concentrations of  ozone  in  the ambient
 air are of great  concern.

      In  this   report,  estimates  are  made   of  the  gasoline
 equivalent price  per gallon  for natural gas  as a vehicle  fuel.
 The price of natural gas, like that of   all  fuels, is determined
 based on supply and demand for  natural  gas as well as the price
 for competing  fuels in  the  marketplace.   For  transportation
 fuels,  the  dominant fuels  are  petroleum-based,  and therefore
 oil prices  will have a  large  influence  on the  eventual price of
 natural gas as  a  vehicle  fuel.   Since no consensus exists on
 the most  likely  trend for  future  oil  prices,  no  long-term
 forecast  of either  future oil  or  natural gas  prices  is  made
 here.   Instead,  current or  near-term estimates  for  prices  are
 used.

.Dual-Fuel  Conversion and Dedicated  Vehicle Costs

      Two  types of ' CNG  vehicle configurations  are considered in
 this  report:   1)  a dual-fuel  vehicle,  originally configured to
 operate on gasoline but converted  to selective operation  on CNG
 or  gasoline  fuels,  and  2)  a  vehicle dedicated to  operation
 solely  on  CNG  arid  optimized for  its use.

      The  conversion  of gasoline-fueled  vehicles to  dual-fuel
 usage  with CNG  is an  established  technology; there  are  more
 than  30,000 gasoline-fueled  vehicles in  the U.S. converted to
 run on natural  gas.[17]   Several  companies  currently  offer
 conversion  kits   and  the  services to  install   the  additional
 hardware  on the vehicle to be converted.

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                         -7-
                       Figuire 1
, NATURAL OAS CYUNOWW
                           («) MtfOllUU. OA*AJ* MUIH
^ niit sei£cro« SWITCH
•1 NATUftAl. IAS
nu CONMCCTON
          5  •
        Additional Components And Systems
        Necessary To Convert Gasoline Fuei
         Vehicles To CNG (Dual Fuel) Usage

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                              -8-
                             Table 3
              Projected Delivered Natural Gas Price
           To Vehicle  Refueling Stations  (1989  $/mmBTU)
                                       Year  1995  Higher/Lower
 Region (State)          •     .    !        Heating Value Prices
 California                                  $4.81/$5.34
 Connecticut                      :            $!5.30/$5.89
 Illinois                                     $3.46/$3.84
 Maryland                                     $4.88/$5.42
 New York                         ;            $4.66/$5.l8
 Pennsylvania                                 $3.98/$4.42
.Texas                                        $2.33/$2.59
 Wisconsin                        •            $4.14/$4.60

 AVERAGE                                     $4.20/$4.66

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                               -9-  .


      A dual-fuel vehicle must be  set  to operate on  one of the
 fuels prior  to  cold  start.   When the  vehicle's  fuel  selector
 switch-is set to the  natural  gas mode/ gas  leaves, the-vehicle
 storage  cylinders and passes through steel tubing to a  pressure
 regulator where  it  is  reduced  to  near  atmospheric pressure.
 The natural gas  from  the regulator flows  into  a gas/air mixer
 where air and natural gas  fuel  are mixed  arid  drawn  into the
 engine.   A spark advance  control for natural gas  operation is
 added to the  engine, and the fuel selector  switch is mounted in
 the passenger compartment.  ..A  diagram of  some typical  retrofit
 components  is given here as  Figure l.[18]

      There   are  three   significant   costs  associated  with
 conversion  of a  gasoline-fueled vehicle to dual-fuel usage with
 CNG.   First,  there are  "underhood"  modifications that  must be
 made  to  accommodate the  introduction  and  mixing of the gaseous
 fuel  with air.   These  modifications  include the  installation of
 shut-off   valves,     fuel     selector    switches,    gauges,
 pressure-reducing  valves, and a  carburetor  designed   for  use
 with  natural  gas.[19,20]    Second,  the labor costs associated
 with  the conversion  are substantial.   This is primarily due to
 the.  fact .-that.;current,, conversion  efforts .. involve relatively
.small-vehicle 'fleets.   Larger numbers  of vehicle  conversions
.may-involve significant economies of scale.

      Finally,  the use of  CNG involves  the pressurized storage
 of  natural  gas  onboard a vehicle.   CNG's  low   energy density
 relative to gasoline  necessitates the use presently of large,
 bulky storage vessels.  Weaver  [21]  has noted  that the weight
 of   a   conventional   steel   cylinder   containing   the  energy
 equivalent of l gallon of diesel  fuel  weighs  41  Ibs; the weight
 of  the fuel and  tank  for  a  typical  gallon equivalent of diesel
 fuel  is  only  9.2 Ibs.   Although promising  research  is  underway
 in  the area of  lighter  weight and more compact storage media,
 this  technology  is  not  yet  commercial,  [13,21] and  the heavy
 gas  storage  cylinders  required  to  meet U.S.  Department of
 Transportation safety  requirements are a significant additional
 cost  and vehicle weight consideration.

      Table 4  contains  a range of costs for these components for
 three different .scenarios: .  1) light-duty  automobiles   at 3,000
 psi .onboard  fuel storage .pressure,  2)  light-duty  trucks at
 3,000  psi gas storage .pressure,  and 3) .light-duty  automobiles
 at  2,400 psi  storage  pressure.  These costs were developed  from
 several  conversion supplier quotes.

      Generally,  total  conversion  costs decrease  with increasing
 vehicle  size   for a  particular  application  (e.g.,  light-duty
 automobiles).   This   is  primarily due  to  the  larger engine
 compartments  and trunk  space  associated  with  larger  vehicles
 (e.g., full-size versus mid-size  passenger  cars).   It is easier
 to  install  the  bulky  storage  vessels  and  underhood hardware on
 vehicles with large engine compartments  and roomier trunks.  An
 attempt  'to   quantify  this   difference  within  a  particular

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                             Table 4
 :    Costs to-Convert Light-Duty Vehicles to Dual-Fuel Status
 	Scenario - Component	                  Cost Range
 Light-duty automobile (3,000 psi storage):
  Underhood equipment costs                   $650-   750
  Labor to install components                    700-900
  Compressed gas storage bottles               1,200 - 1,600
 Cost  Range                                    $2,550 - 3,250

 Light-duty truck (3,000 psi storage);
  Underhood equipment costs                   $  650 -   750
  Labor to install components                    500 -   700
  Compressed gas storage bottles               1,200 - 1,600
 Cost Range                                    $2,350 - 3,050

 Light-duty automobile (2,400 psi storage):
  Underhood equipment costs                   $  650 -   750
  Labor to install components                    700 —   900
  Compressed gas storage bottles                 300 -   600
Cost Range                                    $1,650 - 2,250

Cost estimates for CNG-fueled vehicles in mass production;
  Dual-fuel (CNG plus gasoline)  \                  $1,600
  Dedicated (CNG only)                             $  900

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                               -11-
                                  I

 application is not made  here;  this,  however,  should explain the
 difference  in conversion  costs between  light-duty  truck  and
 automobile applications in Table 4.        .

      The data in Table  4 assumes  that fiber-wrapped steel  or
 aluminum tanks are  used  in  place of  conventional steel  tanks
 for 3,000  psi storage.  Fiber-wrapped tanks offer  a  savings  of
 approximately 30 percent in cylinder  weight  over  conventional
 steel   tanks,   but    are   more   expensive,, [21]    Advanced
 fiber-wrapped aluminum  cylinders  and  all-composite  cylinders
 may  offer   even  greater  weight  savings  in  the  future.[13]
 Storage  costs  are  greatly   reduced   at   2,400   psi   storage
 pressure;  however,  driving range is  reduced  with  2,400  versus
 3,000 psi storage bottle pressure.

      The costs in Table 4 are presented  in a  range of  values
 for vehicles  typically  representative  of  those  found in  each
 category;   vehicles  having either  very  large  or  very  small
 interior volumes  are  not  represented here.   (The  conversion
 cost  of -a  two-passenger  vehicle  may   exceed   $5,000,   for
 example.)[22]   Any  economies-of-scale  .associated  with  larger
..scale., conversion...of. .vehicle ...fleets .to  dual-fuel .usage are  not
 .discussed .\here...::Large-scale, production of dual-fueled vehicles
 (CNG/gasoline) ;would .involve  the.:efforts of  one or more  major
. automotive  manufacturers.

      Costs   similar   to   these  have   been   quoted  in   the
 literature.  A 1983 study [23]  used a range of  $1,200-1,900  for
 the  conversion   cost   of  a   light-duty vehicle  to  dual-fuel
 capability.   In  1988,  the  Gas  Research Institute  estimated  the
 cost  of  converting   a   gasoline  vehicle  to   CNG  dual-fuel
 capability  at  $1,500-2,100 per vehicle.[24]  Other  authors  have
 quoted  conversion costs at $1,200-1,500 per vehicle.[25,26]

     Dual-fuel   CNG-gasoline   vehicles  like  other   dual-fuel
 vehicles  suffer   from  several  drawbacks associated with  their
 ability to  run on gasoline fuel.   The weight of  the compressed
 gas cylinders large enough  to  provide  at  least  a  250-mile
 driving range  on  CNG .alone is  significant  and results in a fuel
 economy loss particularly if  the vehicle is alsso  operating with
 a  full  tank of gasoline  (gasoline fuel usage).   Useful  vehicle
 space is reduced when compared  to  a gasoline vehicle due  to the
 volume-restrictions .posed  by  the inclusion of both  liquid and
 gaseous  fueling  components.     Finally,  .engine  power   and
 efficiency  on CNG fuel are not optimized if the  base  engine is
 configured  for gasoline-fueled  operation.

      If a  CNG dual-fuel  vehicle was to be mass-produced by a
 vehicle manufacturer,    costs   may   be  reduced   due  to  high
 production  volumes  and more efficient labor  utilization.   We
 estimate that  such vehicles  would still cost  $1,600  more  than
 the baseline gasoline-fueled car.

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                               -12-


      An  optimized  CNG vehicle  (single-fuel only)  would use  a
 higher  compression  ratio  in  order to  take full  advantage  of
 CNG's -higher--octane-.rating -(relative  to gasoline).   Ignition
 timing and valve timing  could also be optimized for CNG  usage.
 Gasoline  fuel  components  such   as  the  carburetor   or  fuel
 injection  system,   fuel  pump/  .and  gasoline  tank  would  be"
 eliminated,  offering  weight,   volume,   and.   abate  the  cost
 increase.  The  new fuel  tanks could  also be  tailored to  the
 .vehicle  design,, making more efficient use of .existing  space on
 the vehicle.

      Very few working examples of dedicated CNG vehicles  exist,
 however.   Ford  produced  several  light  trucks   during  1984
 modified to  operate exclusively  on  CNG.[27]   These  were  not
 built in substantial volume,  however, so  it is  necessary to use
 gas  industry  estimates  for   the  cost   of dedicated   vehicle
 production.    Incremental  costs  per  vehicle  guoted   for  an
 optimized CNG  vehicle  range  from  $500  to $1,100.[23,28,29]
 Further  refinement  of  these  estimates  depends  on  the  decision
 by major automakers to produce  a dedicated   CNG  vehicle  for
 public sale  and advancements  in  CNG-related engine technology.
: Our estimates . of <;.-.dedicated ...CNG-..vehicle  costs  are about  $900
••more than its gasoline-fueled,counterpart  in mass  production.

: Service Station Retrofit-Costs

      One of the key obstacles to  penetration by CNG in  the U.S.
 transportation  fuels market  is  the virtual nonexistence  of  a
 CNG  maintenance  and   refueling  infrastructure,  a   critical
 disadvantage  relative to gasoline.[19]  There are  approximately
 30,000 vehicles equipped to  run on  natural gas in commercial
 use in the U.S. [13,17]  supported by a network of 275  private
 refueling stations.  Only 15  of  these stations  offer  natural
 gas for  sale  to the public,  however.   The  U.S.  Department of
 Energy has estimated, that  displacement  of 1 million bbl/day of
 petroleum-based  transportation   fuel   by  CNG  would   involve
 coverting  16,000  regular  public service  stations  and  2,000
 truck  stops  to  distribute  CNG fuel.[30]   Similarly,   Bechtold
 [30]  has  estimated that replacement  of  2  million bbl/day of
'petroleum transportation  fuel  demand with  natural  gas  would
 require  approximately:35,900 .public light-duty  filling  stations
 as  part  of.a  CNG refueling  infrastructure.

     Both of  the  scenarios  above  concerning petroleum  fuel
 demand  displacement   by  compressed   natural   gas  fuel  are
 substantially greater  than the- market  penetration assumed  in
 the President's recent Clean  Air Act  revision proposals.   No
 attempt   is made in  this  report  to  reconcile differences  in
 market displacement  assumptions  among  various  authors.   The
 published  studies  above   may   have  assumed  a  particular
 significant  displacement  scenario without  taking  into  account
 specific  proposed  legislation.   All  of  these  estimates  are

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                               -13-


 large enough,  however,  to ensure at  least some realization  of
 economies  of . scale  associated with  costs  related  with the
 introduction of compressed natural gas as  a serious  alternative
 to petroleum-based transportation fuel.

      Three   types  of   CNG  vehicle   refueling   options  are
 available.    First,   slow-fill   refueling   stations   use   a
 compressor   with   limited  or   no   storage  capability.   The
 compressor  is  sized to  provide filling  capacity  for  a  given
 number  of   vehicles  over   a  predetermined  downtime.   One
 potential use of  the slow-fill  concept  is at  a. refueling  point
 for   a   vehicle  fleet  where   downtime  occurs   at   regular,
 predictable intervals.

      Home refueling  may be  a refueling  option for  residences
 served  by  residential   gas  lines.   Small   compressors  could
 operate    from   lower  residential  delivery   pressures   (near
 atmospheric)  and  pressurize  CNG  fuel   tanks  to   1,000-3,000
 psig.[13]

      The  third  option   involves fast-refueling  from  on-site
..storage  ..capacity  at ;-the .filling station.   The compressor  that
 pumps pipeline gas to .storage'vessel pressures must be  sized  to
 ensure  that  peak .demand . is  satisfied.    Currently all  public
r-refueling stations .in the U.S. -use.the fast-fill method.

      Assumptions concerning  the characteristics of a  network  of
 CNG public  refueling stations   must  be  made.   For  the DOE  1
 million   bbl/day  gasoline  demand  replacement  scenario,  the
 stations  are assumed  to  be partial  conversions  of  existing
 gasoline  vehicle   refueling  facilities;   no   land   acquisition
 costs for additional filling stations are contemplated.   These
 public-filling   stations   would   be    designed    to   service
 approximately 300 vehicles  a  day,  with  a peak capacity  of  30
 vehicles  per  hour.   Four  fueling  nozzles -per station and  a
 refueling   time   of   8  minutes  per   vehicle  are   assumed.
 Deluchi,[13]   citing  Canadian  experiences,[32]  has  estimated
 that  refueling  time for a  CNG vehicle  with gasoline  vehicle
 range, to  include  waiting for the pump and paying for  the fuel,
 might approach  .10   minutes.    DOE  has   estimated   that  these
 stations would dispense  an  average 220,000  cubic  feet of gas
 per .day. [30]

      A  network  of  public  access,  fast-fill  service  stations
 will  be  necessary eventually  to enable  large-scale, replacement
 of  gasoline  fuel demand   with  CNG.    Conventional  dual-fuel
 gasoline/CNG conversions have a  limited  driving range on CNG
 fuel.   CNG  fuel  availability away  from the vehicle's  garaging
 point is  necessary  to   make  possible  CNG  fuel  usage  during
 extended,  non-commuter driving".   Widespread  acceptance of CNG
 vehicles by  individuals, particularly  individuals  without the
 desire or the means  to   implement home  refueling,  will  require
 an  expanded  network  of  public   access  filling stations.   This

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                               -14-


.  report  therefore considers that a  network of fast-fill  public
  access   refueling   points   is  vital   to  widespread   public
>  acceptance  of  CNG as  a .petroleum  fuel  replacement.   Costs  of
  partial  conversion of a gasoline-fueled station to CNG  use are
  considered  below.   These costs  do  not  include  any truck  stop
  conversions to serve heavy-duty vehicles powered by CNG.

      Table  5  provides- a range  of  costs to convert a gasoline
  "island"  of four pumping points to CNG usage.   It is  assumed
  that the present station  location  will  accommodate the  island,
  and that no acquisition of land will be  necessary  to  facilitate
  the  retrofit.   The  costs  are eszpressed  in a range from lower
  cost to higher cost options for most of the components.

      The  compressors  considered range from 200  to 300  SCFM of
  natural  gas pumping capacity, for  a final, storage pressure of
  3,600  psi.   Compressor  costs  include  starting  and  cooling
  systems.  Compressor  cost  is very  sensitive  to  inlet  pressure;
  an  inlet pressure  range  of near  atmospheric  to 40  psi  was
.  assumed.

      .The ..range ..of -costs.. for .the . compressors  given in  Table 5
  include  the . cost   of  a   large   electric  compressor-  motor.
. Typically, the work; of .-.compression  at .a fast-fill refueling site
•is done with an  -electric • motor.  :An alternative to this method
 might be the use  of  an industrial natural  gas-fueled  engine,
 assuming  that  any  safety or  other  considerations  could  be
 overcome.   A  recent  report  prepared for  the  U.S.   DOE,  [33]
 presents  a  sample  calculation  for  the  cost  of  an  industrial
 natural  gas-fueled engine  together  with  a  calculation  for a
 comparably  sized  electric  motor.   A 200-horsepower engine was
 estimated to be  sufficient  for  the compressor application given
 here.   The cost  of   the  industrial  natural  gas  engine  was
 calculated  to   be  approximately   $21,000;   the  cost   of  a
 150-kilowatt  electric  motor  for   the   same  application  was
 calculated  at   roughly  $11,000.    Subtracting  this  $11,000
 estimated electric motor cost from  the compressor  cost in Table
 5, and  adding  $21,000 estimated for  the industrial natural gas
 engine, would have  the effect of  increasing the upper bound on
 the CNG  refueling  station costs from  $396,000 per  station to
 $406,300 per station.

     .The  bottle  storage cost  was  a function of  the  type of
 storage vessels  used and total  storage  capacity.   At  the  lower
 cost end of  the  spectrum,  20-bottle  cascades  of 35,000  SCF
 capacity are assumed to  be of sufficient size.  The higher cost
 figure  is  for  100,000  SCF  capacity  at  4,000  psi  storage
 pressure.  These ASME  cylinders  are 23 feet in  length, 2 feet-3
 inches in diameter,  and stacked  three high.  A total  of nine
 cylinders (three banks of three) are necessary  to provide this
 storage  capacity.   Manifolding  expenses-  for   these  storage
 configurations  range from $2,250" to $6,800.

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                              -15-
                             Tafole 5
              Costs, to Partially Convert a Gasoline
            Service Station to Fast-Fill  CNG Refueling
      Capitalized  Items
 Compressor*
 Gas  storage
 Fast-fill gas metering  and
  dispensing system
 Manifolding
 Sequential, priority panels,
  wiring, and installation
 Safety valves and devices
 Spare parts
 Gas line..connect ion .fees -and
  expenses
 Shipping costs
Engineering,  overhead,  and
  administration
Buildings
Land.
RANGE OF TOTAL COSTS
Range of Costs (dollars)
$107,000 - 200,000
  25,500 -  99,000

       24,000
   2,250 -   6,800

        7,500
       12,000
        6,000

        2,000
        7,000

       22,000
       10,000

$225,250 - 396,300
     Includes electric compressor motor.

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                               -16-


      The costs  of  the service station retrofit calculated here
  ranged  from $225,250 to $396,300 per  station  converted.  These
  costs  are  similar- in  magnitude  to  costs in.. other  published
  reports.   In  a report prepared  for  the U.S.  Department   of
  Energy,  [34]  E.  A.   Mueller  costed  a  CNG  fast-/slow-fill
  refueling  station  with two  nozzles serving  50-60  vehicles  at
  $75,000-125,000.   These costs assume a  small  fleet  operation;
  Mueller's  [31]  estimated  cost  of  a  larger  gasoline  station
 .retrofit as $321,500 per station.  Biederman [29] estimates  CNG
  refueling   station   costs    for   medium/large   urban   public
  quick-fill  stations  serving  150-225 vehicles  per day over  the
  range of $339,900 to $406,260.

      Biederman  [29]  provides a  range  of  station   conversion
  costs  of   $175,000   to $193,000   for  mixed  fast-slow fill
  conversions  serving   private  fleets   of  45-115   light-duty
 vehicles.   Darrow  [23]  provides a range of $60,000 to $255,000
  for  the cost  of  refueling  equipment  to  serve  a  100  vehicle
 fleet.   This equipment, however,  provides for a mix of  fast-
 and slow-fill capability.

    .Several ...potential ..home  compressor  packages .are  mentioned
. in .reference   29,   but  are   referred  to   as  test   market
/applications . only.   No large-scale  use of . home CNG  refueling
..has-.-been  -made  and  documented.    Although  -very speculative,
 prices   as   low  as  $2,000   for  a  home  compressor  have been
 mentioned.[29]

      Advanced natural gas vehicles  may  have  storage  pressures
 as low as  500  psi using  adsorbent  storage.    This form  of  fuel
 storage, potentially very advantageous, is not yet commercially
 viable.   Any  improvements  in natural gas  storage  technology
 will  have  benefits  both  in vehicle  storage and  in  fueling
 station  storage.

 Pipeline Expansion  Costs

      The  increased   use   of  natural   gas    as  a   light-duty
 automotive  fuel  may have the effect  of requiring  substantial
new investment  in pipeline infrastructure.  Areas  not currently
 served by a  local pipeline distribution  infrastructure may have
 to.be supplied with one'if natural  gas fueling.of a  significant
-portion  of  the .locality's  vehicles  is . desired.   New  end-use
 loading    may    impact   the   entire   transmission   system,
necessitating  pipeline  expansion  and  the  addition  of  extra.
 storage  capacity.

      The U.S. Department of  Energy has  examined the  impact of
 increased  utilization of natural  gas  as  an  automotive  fuel on
the present gas  transmission and storage  systems.[30]   DOE has
estimated  that the  degree  of under  utilization in  the  current
U.S.  gas pipeline  transmission system  is  sufficient  to permit
the displacement of 1 million bbl/day of petroleum  fuel demand
 in the  automotive  sector  with CNG  without the  construction of

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                               -17-


 additional  transmission  capacity.   DOE   also   assumed  that
 additional storage  capacity will  not  be  required nationally.
 The  primary  reason  for  this,   assumption  is  that  the  peak
 seasonal driving demand for CNG fuel should  coincide  with the
 lowest  demand period  for   other  segments  of  the natural  gas
 market.

      Local distribution infrastructures  may have.to be expanded
 in  order  to  provide gas  to public  access  sservice  stations.
 Excess capacity would be used and  incremental  additions  to the
 current   distribution   system   would   be   made   rather  than
 construction of a  dedicated distribution network  designed for
 transportation  fuel  use.    The  total  incremental  cost  of
 additions  to  local  infrastructures was  estimated by DOE to be
 upwards  from $604 million.

      E.  A.  Mueller  has   estimated  incremental  natural  gas
 transmission  and   storage -  costs  for   the  U.S.   pipeline
 distribution  system  assuming  the replacement  by  CNG of   2
 million  bbl/day  of  petroleum  transportation fuel.[31]  This
 analysis includes  costs  to service both light-  and heavy-duty
.vehicle  .demand.  . .Two .separate .scenarios  ace  considered  by
.Mueller. ..The first .scenario  includes distribution system costs
 to  service  a refueling:- network   composed   of  public  access
 service, stations . and .truck  -stops,  as well as  a  number of
 private  fleet refueling  points.   The  incremental distribution
 system cost for  this scenario was  about $3 billion.  The second
 scenario assumed that  all  refueling occurred  at  public access
 service  stations  and  truck  stops;  increase!!  in distribution
 costs were  estimated at $2.5 billion  for  this  option, which
 incorporates  only the light  vehicle portion.

      DOE [30] has  used E.   A. Mueller  studies to arrive at  the
 estimates of  distribution system incremental costs presented  in
 references  30,  34,  and  35.  Mueller's higher  costs  given  in
 reference  31 are associated with expanded  scenarios to  include
 heavy-duty  truck stop service,   involving  the replacement of  a
 greater  portion of petroleum-based  fuel  demand than  the  DOE
 work.[30]

 Capitalized Distribution Costs

    .  The;.difference1 .between a wholesale price of a fuel  and its
 retail .;price  can  be * divided into  three  main components:   l)
 distribution of  the  fuel   to the  service  station,  2)  service
 station  markup,  and  3)  taxes.    A summary  of  estimates  for
 capitalized distribution  costs  relating to  both gasoline  and
 CNG fuels  is  given  in Table  6.

      The distribution costs associated  with gasoline  fuel  were
..taken from an earlier EPA position paper. [10] Table 6 presents
 four  separate scenarios for capitalized CNG distribution costs.

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                                       •-la-
                                     Table 6

                           CNG Fuel..Distribution Costs
                           10-Year Capital Cost Payback
                     (cents per gasoline gallon equivalent)
 Scenario
                                 Service
Local Distri-  Service Station   Station   All
bution Costs*  Conversion Costs**Markup   Taxes
 Lower CNG       1.2/ l.O/ 0.9   6.6/ 5.6/4.9
 station cost
 10 percent ROR

 Higher CNG      1.2/ l.O/ 0.9  11.6/ 9.9/3.6
 Station cost
 10 percent ROR

Higher CNG      1.2/ l.O/ 0.9  11.9/10.1/8.8
Station cost
CNG compression
10 percent ROR

Gasoline              6
                                           24
                                           24
                                           24
    Totals
40.8/39.6/38.8
45.8/43.9/42.5
46.1/44.1/42.7
                                           24
       39
*    CNG  figures  assume  alternately  556/200.  654,300  and 752,500  gasoline
     gallon equivalents of CNG pumped per station.

**   CNG figures do not include operating expenses.

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                              -19-


 all  assuming  a  10-year  payback  period.   Local  additional
 distribution costs  of  $604  million  to  support  a  light-duty
 service station  infrastructure . are spread over  16,000  service
 stations,   for   an   approximate  average  cost  of  $40,000  per
 station.   A  10  percent rate  of  return  is  postulated and  an
 annuity assuming a  10-year payback  period is  calculated.   The
 annual  annuity is divided by three different  yearly  gas  sales
 estimates:    556,200,   654,300,   and  752,500  gasoline  gallon
 equivalents,  respectively.   These  gas sales  estimates  include
 the average yearly sales per station estimated by DOE  to  occur
 at each  of  16,000  light-duty  service  stations  assuming a  1
 million bbl/day displacement   of   petroleum  fuel   demand  by
 CNG.[30]   The upper  and lower  sales  bounds  assume  15 percent
 greater and  15  percent  lower  sales  volumes  than  the  DOE
 estimate.   It should be noted  that these  estimates  are spread
 over  a  much higher level of penetration  than  is required in the
 President's Clean Air  Act Amendments.   To the extent that scale
 is smaller, unit  costs will rise.

      Two  separate service  station conversion  costs,   a higher
 estimate of $396,300 and a lower estimate of $225,250 have been
 presented  earlier . in. ..this .report.   .These two  estimates assume
•that  an electric;motor is..used to.compress the natural gas fuel
 at the  service station.  .If .a .natural - gas-fueled engine is used
 for.'compression, : we .estimate that.:the  higher  service station
 cost would be raised to  $406,300.  All three  estimates are used
 here;  annual annuities  assuming  a 10  percent annual  rate of
 return  are  calculated  for   each  scenario.   These  annual!zed
 costs are  then  dividied by the three different CNG sales volume
 figures presented earlier.

     Taxes  are  assumed  to be  applied  at the  same  rate that
 gasoline   taxes   are   applied,   24£   per    gasoline   gallon
 equivalent.   This  assumption  was  made  in  an  earlier  EPA
position paper.[10]

     It  is  important   to  note  that Table   6  considers  only
 capitalized costs and  taxes.   Variable  operating expenses such
 as  utilities  expenses  are  discussed  later  in this  report.
Service station markup includes profit;  this  amount is the same
on  a  gasoline   gallon  equivalent  basis  as  reported  in the
earlier methanol.study.[10]

     The  distribution   cost  estimates   given  here  are  very
sensitive to  sales volumes of natural gas  through the converted
 stations.   If  sales volumes  per  station  as  large  as   these
postulated  here  fail  to materialize,  these   costs  per unit  of
fuel  delivered   could  rise  in  proportion to  the  decrease  in
sales volumes.

Gasoline Equivalent CNG  Retail Price

     The method  used here to determine  the  retail  price  for  a
gasoline  gallon  equivalent  of  natural   gas   automotive  fuel
begins  with the  determination  of  a range  of prices of natural

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                              -20-


 gas delivered to vehicle  refueling stations.   The pricing used
 here was discussed  earlier  in this  report;  the delivered prices
 include distribution costs to the service station.  These costs
 per gasoline-equivalent are  added to  the capitalized  service
 station  costs  developed  earlier.    Service   station  operating
 costs for CNG are developed  below.   Finally,  sales consumption
 taxes are computed  on  an  energy-equivalent basis with gasoline
 for CNG fuel.

      Table  7  presents a summary comparison of current gasoline
 and projected natural gas prices.

      The current   gasoline  price  rollup  was taken  from  the
 recent  EPA  position paper  addressing the use  of  methanol  as an
 alternative fuel.[10]   The $1.08 per gallon price is taken from
 that report;  this  is  the  current  average retail  price of  1
 gallon   of  unleaded,  regular  gasoline.    The current  average
 price of unleaded premium  is  $1.23  per gallon; weighted average
 sales  of these two  gasolines gives  a  current average price of
 $1.12 per gallon  for unleaded  gasoline.   Distribution,  service
 station markup,  and taxes  were taken  from Attachment 2 of the
 aforementioned report.[10]

     •-Using .-the  $2.59  -.(.lower),   $4.66  (average),  and  $5.89
.(higher)  per •.million  BTU .low€»r  heating value prices  given
 earlier  for the range of natural gas prices,  the conversion to
 cents  per  gallon  was  determin€>d  using  114,132  BTU/gallon,  a
 nominal  value for  gasoline  used previously  by  EPA.[5]   This
 results  in  values  of  30^/53^/67^  per gasoline  gallon thermal
 equivalent.

     Capitalized  service station costs and taxes  for  CNG were
 calculated  earlier   in  this  report.   Operating and maintenance
 expenses  associated  with   service   station  operation  were
 sensitive to .the  method used to compress the  natural  gas  at the
 service  station (electric  motor or natural  gas engine).  These
 expenses     included    compression     energy,    maintenance,
 administrative, and other  general expenses  over  the range of
 CNG   sales  volumes  .of  556,200  to  752,500 gasoline  gallon
 equivalents referred to earlier.

     The  price : range  .for  CNG   light-duty  automotive   fuel
 calculated  in .-this manner  is  $0.78-1.27 per, gasoline  gallon
.thermal   equivalent   of  -fuel    assuming   electric   motor
 compression.  For a vehicle with a CNG fuel economy of  17 miles
per gasoline gallon  equivalent,  the  fuel price range  translates
 into  a  cost of between $4.59-7.47 to travel 100 miles.  These
 costs   are  higher   than  a  recently published  estimate   of
 $3.00-5.00  fuel  cost  to  travel  100  miles  in  a  light-duty
vehicle equipped to  operate on  CNG.[36]

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                               -21-
                             Table 7

       Gasoline and CNG Energy Equivalent Price Comparison
       	(dollars per gasoline gallon equivalent)	.
                                     Compressed Natural Gas
 Cost Classification  Gasoline

 Extraction/ refining,   $0.69
 other

 Natural gas delivered
 to service station      —
 Long-range and local
 distribution costs

 Capitalized service
 station conversion
 costs

.Operating expenses

 Maintenance,  admin.,
 and general expenses

 Service station
 markup

 Taxes

 TOTALS
  0.06
  0.09

  0.24
          Electric Motor
            Compression
                  CNG Engine
                  Compression
         $ 0.30/0.53/0.67  $0.30/0.53/0.67
0.05 - 0.12

    0.08



0.02 - 0.07



    0.09

    0.24
0.09 - 0.12

0.02 - 0.04



0.03 - 0.08



   0.09

   0.24
$ 1.08   $0.78/1.07/1.27   $0.77/1.05/1.24

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                               -22-


 ECONOMIC ASPECTS OF COMPRESSED NATURAL GAS USE

                           • References


      1.    "Natural  Gas,  Synthetic  Natural  Gas  and Liquefied
 Petroleum  Gases  As  Fuels  For Transportation," Fleming,  R. D.
 and R. L. Bechtold, SAE Paper 820959,  August  1982.

      2.    "Report  of  the  Alternative  Fuels  Working  Group,"
 Vice President's Task Force on Regulatory Relief," July  1987.

      3.    "Assessment  of  Costs  and Benefits  of  Flexible  and
 Alternative  Fuel  Use  In  the  U.S.  Transportation   Sector,"
 DOE/PE-0080,  January 1988.
                                   i
      4.    Gas Engineers  Handbook,  First  Edition, Industrial
 Press,  Inc.,  New York, NY>  1965.

      5.    Federal Register, Vol. 50, No.  126,  Monday,  July l,
 1985,  p.  27179.

      6.    Natural    Gas     AnnuaJL,    Energy   Administration
.Administration, DOE/EIA-0131<86)/1, October 1987.

      7.    "Emissions,  Fuel   Economy,   and   Performance  of
 Light-Duty CNG  and  Dual-Fuel Vehicles,"  Bruetsch, Robert  I.,
 U.S. EPA,  EPA/AA/CTAB/88-05, June 1988.

     8.    "Executive Gas   Industry  Statistics,"  American  Gas
 Association,  Arlington,  VA,  April 1989.

     9.    Monthly    Enercry    Review,     Energy    Information
 Administration, DOE/EIA-0035 (89-08),  November 1989.

     10.    "Analysis of the Economic and  Environmental Effects
 of  Methanol  as  an  Automotive  Fuel,"  Special Report  of  the
 Office  of  Mobile  Sources,  OAR, EPA, September 1989.

     11.    "The Economics  of Alternative  Fuels  and  Conventional
 Fuels," SRI International,  presented to  the Economics  Board on
 Air Quality and Fuels,  February 1989.

     12.    "Assessment of Costs and  Benefits  of  Flexible  and
 Alternative  Fuel  Use  in   the  U.S.   Transportation   Sector,
 Technical  Report  Two:   Executive  Summary  - Methanol  and  LNG
 Production  and   Transportation  Costs,"   Office  of   Policy,
 Planning and Analysis,  U.S.  DOE,  May  1989.

-------
                              -23-


      13.    "Methanol  Vs.  Natural  Gas Vehicles::   A Comparison of
 Resource  Supply, Performance,  Emissions,  Fuel  storage  Safety,
 Costs,  and  Transitions," DeLuchi,  et  al.,  SAE  Paper  881656,
 October 1988.

      14.    "The  Gas Energy Supply Outlook  Through 2010,"" Policy
 Evaluation   and  Analysis  Group,   American   Gas  Association,
 Arlington, VA, October 1985.         .

      15.    "Annual  Energy Outlook  1985,"  Energy  Information
 Administration,  U.S.   Department  of  Energy,  DOE/EIA-0383(85),
 Washington, D.C., January 1986.

      16.    "Natural Gas  Prices for  the Vehicle  Market,"  Issue
 Brief 89-19,  American Gas Association,  Arlington, VA, November
 22,  1989.

      17.   Gas Research  Institute Digest,  Vol.  11, No.  3,  Fall
 1988.

      18.   Reprinted   from  "Natural   Gas  Powered  Vehicles,"
 International .Literature .Published by Minnegasco, Plymouth, MN.

     .19.   "CNG:  .The. Ideal .-.Transportation  Fuel,"  Automotive
 Fleet, Large, .-R...B., March .1988.

     20.   IMPCO  Carburetion,   Inc.,  Master  Catalog,  Cerritos,
 CA, 90701, 1987.

     21.   "Natural Gas Vehicles - A Review of  the state of the
Art,"  Weaver, C.  S., Sierra  Research,   Sacramento,  Ca,  April
 1989.

     22.   Personal   Communication,    Chris    Bruch,    General
Manager, Garretson Eguipment  Company,  Mt.  Pleasant, IA, October
 1989.

     23.   "Economic  Assessment   of  Compressed   Natural  Gas
Vehilces  for  Fleet Applications,"  Darrow, K,  G., Gas  Research
 Institute, Chicago,  IL, September 1983.

     24.   "GRI's ..Research    Initiatives   In   Natural.  Gas
Vehicles,"  Ban,  .S.  D.,  Gas  Research  Institute,  September 20,
1988.

     25.   "Cheap Gas,  Clean  Air,"  Sperry,  S.  R.  in Seattle
Post-Intel1iqencer,  July 30, 1989.

     26.   "The   Practical  and   Economic   Considerations   of
Converting  Highway  Vehicles  to  Use  Natural  Gas as  a Fuel,"
Bechtold,  R. L., et al.,  SAE Paper 831071, 1983.

     27.   "The  Development  of   Ford's  Natural  Gas  Powered
Ranger," Adams, T.,  SAE Paper 852277,  1985.

-------
                              -24-


      28.    Planning and Analysis  Issues, Issue  Brief 1989-11,
 American Gas Association, Arlington, VA,  July 21. 1989.

      29.    "Dedicated  Low-Pressure  Natural  Gas-Fueled  Vehicle
 Baseline  Assessment,   Task  3   Topical   Report,   Light-Duty
 "Vehicles,"   Biederman,   R.   T.,   et  al..  Institute   of   Gas
 Technology,  Chicago, IL, January 1989.

      30.    "Assessment  of  Costs  and  Benefits, of  Flexible and
 Alternative  Fuel   Use   In   the  U.S.   Transportation  Sector,"
 Progress    Report   Three,   Vehicle   and   Fuel   Distribution
 Requirements (Draft),  U.S.  Dept,,  of Energy, Office  of  Policy,
 Planning  and Analysis, July 1989.

      31.    "An  Assessment  of  the  Infrastructure  Required  to
 Refuel  A Large Population  of  Natural Gas  Vehicles," Bechtold,
 R. L. and G.  Wilcox, SAE Paper 892066, September  1989.

      32.    "Gaseous  Alternative   Fuels   Field  Trials  in  the
 Canadian  Environment,"  Heenan,  J.  S.,   et al.,  Nonpetroleum
 Vehicular  Fuels  Symposium  IV,  Institute  of  Gas   Technology,
 Chicago,..IL,  October 1984.

     .33.    "An Assessment of  Farm-Based  Approaches For  the Use
 of the.; Stirling .Engine," RCG/Hagler,  Bailly, Inc.,  Washington,
 B.C., prepared for the U.S. Department of Energy, June 1988.

     34.   "Gaseous Fuel  Vehicle? Technology,  State  of  the Art
 Report,"  (Revised Draft),  prepared  for  The U.S. Department of
 Energy by E.A. Mueller, Inc., December 1985.

     35.   "Assessment   of   Natural   Gas   Infrastructure  for
 Transportation  Use (Draft),"  prepared  for Oak  Ridge National
 Laboratory by E. A. Mueller, Inc., Baltimore, MD, November  1988.

     36.   "The Methanol Car  In Your  Future,"  Fortune, Kupfer,
Andrew,  September 25, 1989.

-------
                               -25-
 ENVIRONMENTAL IMPACTS OF CNG USE

 Urban Ozone Levels

      The  primary  environmental  benefit  associated  with  the
 alternative fuels program will  be significant  improvements  in
 ozone  levels  in  the  most  seriously  polluted areas  of  the
 country.  The clean,  alternative  fuel advantage over  gasoline
 in terms  of  urban ozone formation is  due  to both  lower levels
 of vehicle emissions and the lower photochemical reactivity of
 these emissions.   In the case of CNG,  it is the lower levels of
 photochemically  reactive  emissions   that   are  of  particular
 importance.

      The  photochemically  reactive fuel-related  emissions  from
 CNG-fueled vehicles,  for example, consist  of mostly nonmethane
 hydrocarbons  (NMHC),  compounds with  reactivities  assumed to be
 .the  .same    as    nonmethane   .hydrocarbon   . emissions   from
-gasoline-fueled  vehicles.   The difference  is  that  CNG-fueled
 vehicle   exhaust   hydrocarbons  are   typically  90-95  percent
 nonreactive  methane,  emissions  (5-10  percent  NMHC),  whereas
 gasoline-fueled vehicletexhaust hydrocarbons are typically 5-35
 percent  nonreactive  methane  emissions  (65-95 percent NMHC).
 Because  of this much higher percentage of  nonreactive  methane,
 the NMHC emissions of CNG vehicles are much  lower than  gasoline
 vehicle  NMHC  emissions.

      Another  photochemically  reactive  compound,  formaldehyde,
 is  emitted at very low  levels;  (approximately the same amount  is
 emitted  from  both CNG-fueled and gasoline-fueled vehicles).

      In  a  test program  performed by  EPA  in 1988,  a small  fleet
 of  dual-fuel  vehicles  (vehicles  which  run  on  either  CNG  or
 gasoline)  and one dedicated CNG  light  truck were  tested for
 exhaust  emissions, fuel economy,  and performance.[1]   In  that
 study,  non-methane hydrocarbons  were  found  to  be  much  lower
 from  CNG-fueled  vehicles  compared  to  vehicles  operating  on
 gasoline as the fuel.                                  ,

      The California Air  Resources  Board reported  exhaust  NMHC
 emissions  totaling- 9.1   percent  of  total   hydrocarbons from  a
 vehicle  with CNG fuel  which  contained  7.2  percent  nonmethane
 hydrocarbons  by  weight.[2]   Exhaust NMHC  is somewhat  greater
 than  feedgas NMHC presumably  because the  exhaust  may contain
 some  NMHC  from burned lubricating oil.   Nonmethane  hydrocarbons
 made  up  only 3.7 to 6.5 percent  of  total  hydrocarbons in the
 EPA-tested CNG  fuels so the exhaust  NMHC in the EPA study might

-------
                              -26-


 be expected to be somewhat less than 9.1 percent.  Applying the
 same ratio as  that  observed in the  GARB study  yields  exhaust
 NMHC  of  4.7  to  8.2  percent  of  total hydrocarbons.   In  a
 subsequent EPA  report using  the  same  data,  an exhaust  NMHC
 fraction of 10 percent of total hydrocabons was assumed.[3]  In
 the following  analysis,  the "NMHC  =10 percent of total  HC"
 assumption is used  as  an upper bound or "worst  case,"  and the
 "fuel  NMHC = exhaust NMHC" assumption is used  as  a  lower  bound
 or "best case"  for estimates of NMHC from CNG-fueled vehicles.

      In a third EPA report, emission  factors are projected for
 "in-use" dedicated  CNG vehicles.   This study  also  uses  the
 previous EPA and CARB-generated data mentioned above.   However,
 since  no in-use (high-mileage)  data were available, the in-use
 dedicated-CNG vehicle NMHC exhaust emissions were determined by
 taking the average  of  dedicated  and dual-fuel  laboratory  (low
 mileage) vehicle NMHC data assuming that NMHC = (0.1) THC.C4]

     The EPA laboratory data show NMHC exhaust emissions from a.
 dedicated CNG light  truck is 0.06 g/mile (assuming  fuel NMHC =
 exhaust NMHC)  or  0.14 g/mile (assuming NMHC -  (0.1) THC).   This
.test .program also .shows .NMHC, exhaust .emissions  from  dual-fuel
 vehicles operating, on CNG-average 0.12  g/mile and  0.23 g/mile
.with.the .same assumptions,-; respectively.  The .projected in-use
 dedicated'CNG vehicle .is  assumed  to have exhaust emissions of
 0.186 g/mile NMHC (i.e., the average of 0.14 and  0.23 g/mile).

     On a reactivity-equivalent: basis,  CNG  dual-fuel  vehicles
 are  projected to  emit 36-47 percent less  than  typical future
 in-use   gasoline  vehicles,  while  optimized   dedicated  CNG
vehicles are projected to  emit 80-93 percent  less  than future
 in-use  gasoline vehicles as shown in Table 8.[5-7]

     Passenger  cars   and  light-duty  trucks  now   are  typically
responsible  for approximately  87  percent of  all motor vehicle
related ozone precursor emissions.   If  all passenger  cars  and
light   trucks  in  a  given  metropolitan  area   were  optimized
dedicated  CNG vehicles  that emitted  80-93  percent  less   ozone
precursors than gasoline vehicles,  these vehicles would reduce
the  total ozone  impact in  that  area by an  average  of   70-81
percent  assuming  no'change  in  stationary source  contributions.
Assuming that."in  the year 2015, gasoline fueled  motor  vehicles
will be responsible'for only 20 percent  of  all ozone precursors
in  such an  area,   the  replacement  of  all  gasoline .fueled
vehicles  by  dedicated  optimized  CNG   fueled  vehicles   would
reduce  the total by about 16 to 19 percent.

     The ozone precursor  emission  reductions  achievable  with
the clean,  alternative fuels program are a  significant portion
of what  could be achieved by taking  the  same number of  cars  off
the road,  and are  much larger  than the  reductions that  would be
available  from  any other  motor vehicle  control  program  absent
major vehicle use restrictions.

-------
                                         -27-
                                        Table 8

                       Projected la-Use-Gasoline VOC-Eguivalent
                  Emissions for Gasoline and Methanol and CNG Vehicles
                                   (grains per mile)
                                 NMHC          Methanol        Formaldehyde Gasoline
                              Reactivity      Reactivity        Reactivity     VOC-
                        NMHC    Factor   Metb.   Factor    HCHO    Factor   Equivalent
 Gasoline;
   -  Current Standards
   -  Proposed Standards

FFVs on M85s

   -  Readily Feasible
   -  Optimized

M100;

   -  Optimized

Dual-Fuel CNG;

   -  Worst Case
  -  Best Case

Dedicated CNG:
(1.73  x 1.00) + (  0   x 0.19)  + (.007   x   2.2)
(0.94  x 1.00) + (  0   x 0.19)  + (.005   x   2.2)
(0.350 x 1.00) + (0.950 x 0.19)  + (.060   x   2.2)
(0.310 x 1.00) + (0.750 x 0.19)  «• (.035   x   2.2)
(0.05  x 1.00) * (0.572 x 0.19)  + (.015  x  2.2)
(0.604 x 1.00) + (  0   x 0.19) + (.004  x  2.2)
(0.489 x 1.00) + ( .0   x 0.19) + (.004  x  2.2)
1.75
0.95
0.66
0.53
0.19
0.61
0.50
  -  Worst Case
  -  Best Case
(0.186 x 1.00) + (   0   x 0.19) + (.004  x  2.2) -      0.19
(0.057 x 1.00) + (   0   x 0.19) •»• (.005  x  2.2) =      0.07
     All  fuels  except  dedicated  CNG  have  hot  soak/diurnal,   running  losses,  and
     refueling  losses  included   in  addition  to   exhaust. NMHC   emissions.    Hot
     soak/diurnal,  running .losses/  and refueling losses  for dual-fuel  CNG vehicles
     are  assumed  to  be   nearly  equal  to   those  of   gasoline-fueled  vehicles
     corresponding to the standards, proposed  by the  President.   These values of 0.13
     grams per mile for hot soak/diurial, 0.16 grams per mile  for running losses, and
     0.07 grams per mile  for refueling were used as 0.18, 0.16 and 0.03  for dual-fuel
     CNG.  The reduction in refuling losses reflects less fueling with gasoline.

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                               -28-


 Carbon Monoxide and Oxides of Nitrogen

      The  exhaust  -emissions  of  dual-fuel  .and  dedicated  CNG
 vehicles  are difficult to  characterize  due to  the lack  of  a
 significant  database  for  either type of vehicle.  However, EPA
 has  tested  three dual-fuel vehicles:  a  1984 .Oldsmobile Delta
 88,  a 1987  Chevrolet  Celebrity (2 versions), and  a 1987 Ford
 Crown Victoria  (2 versions), and  one dedicated CNG 1984 Ford
 Ranger pickup truck.   The exhaust emissions of  CO.and NOx from
 these vehicles are discussed .together  in  this section,' because
 current  strategies to  reduce  the  emissions of  one  of these
 pollutants,  tends to increase the emissions  of the other.

      Dual-Fuel CNG Retrofit Vehicles

      The emissions data from dual-fuel vehicles,  shown in Table
 9, suggest  a clear trend with respect to CO emissions.[3]  CNG
 dual-fuel vehicles offer the. potential for  very significant CO
 emission  reductions.   CO. emissions  from  each of  five vehicle
-configurations  tested by EPA  and  GARB   (see  Table  9)  were
 significantly reduced with  CNG,,  with three  of  the vehicles
 emitting  near  .zero  CO.[1,8,9]   These   results  confirm  both
.theoretical  ..expectations  (better mixing  of gaseous fuel, lean
.operation,  lack  .of fuel  enrichment  for  cold-starting or full
 power, .and   better efficiency)  and  data  from  test  programs
 involving pre-1981 vehicles.

      Another  tendency  observed  in   the  EPA  test  program,
 however,   is  the  CO emission  reductions  with  CNG  are  not  an
 inherent  property  of  the fuel. [3]   As with  any fuel,  vehicle
 calibration, and how the vehicle  maintains  the calibration, are
 important determinants  of  CNG vehicle  emissions.    While all
 three dual-fuel  vehicles tested by EPA ultimately gave very low
 CO values,  two  of  the three  vehicles yielded  much higher  CO
 levels when  originally  tested  by   EPA  in the   as-received
 condition, and  the third  (a 1984  Delta  88)  exceeded  the  CO
 emission   standard with  gasoline.   The Crown Victoria  vehicle
 supplier   indicated that  this  car  was   originally  calibrated
 slightly   rich of stoichiometric  to  achieve low NOx emissions,
 and had  to  be  recalibrated in  order to  bring  the CO  levels
down.   CO emissions from  the Crown  Victoria before  and  after
 recalibration  were  4.3  .and  0.4   gpm,  respectively.   NOx
 emissions on  the  Crown  Victoria  were  0.6  and  0.9   gpm,
.respectively.  The Celebrity CO emissions were  2.6   and  0.0  gpm
before    and   after    recalibration,    respectively.     The
corresponding NOx  emissions were  1.6 and  1.2  gpm,  indicating
that  a different  calibration problem  other than  air/fuel ratio
 (e.g.  spark timing)  could  have  existed  with  this  vehicle.
While the Celebrity exhibited some driveability  problems in the
high   CO   mode,   the  Crown  Victoria did  not,   raising  the

-------
                              -29-
                            Table 9

       Exhaust Emissions from1CNG/Gasoline Dual-Fuel Cars
     (grams per  mile over the EPA Federal Test Procedure)[1]
Site
EPA

EPA

EPA

CARS

CARS

Test Vehicle
CNG Fuel Sys .
1984 Delta 88
Total Fuels
1987 Crown Vic.
Wisconsin Gas
1987 Celebrity
Dual Fuel Sys.
1983 Ford LTD
Pacific Light
1985 GMC Pickup
Fuel
Gasoline
CNG
Gasoline
CNG
Gasoline
CNG
Gasoline
CNG
Gasoline
CNG
NMHC2
0
0
0
0
0
0
0
0
0
0.
.30
.25
.27
.36
.20
.16
.36
.35
.26
.05
CO
9.
1.
1.
0.
1.
0.
3.
0.
7.
0.
8
7
4
5
3
1
3
1
0
2
NOx
0.
1.
1.
0.
0.
1.
0.
0.
0.
1.
40
18
07
93
60
19
56
47
70
06
Eff.l* Eff.24 Accel4
-15.%
- 7%
-15%
-13%
-15%
- 8%
NA
NA
NA
NA
Base
+ 10%
Base
-1-4%
Base
+8%
Base
-20%
Base
-20%
Base
-30%
Base
-27%
Base
-31%
NA
NA
NA
NA
[1]  Taken from references 1 and 3

[2]  Non-methane HC was  calculated assuming that  methane was  egxial
     to 25 percent of gasoline  HC emissions and 90 percent of CNG HC
     emissions for EPA test vehicles.

[3]  Post-conversion energy efficiency over the FTP relative  to  EPA
     certification  fuel  economy  data  for  the  specific  gasoline
     vehicle model.

[4]  These final  two  columns use  the  post-conversion gasoline , fuel
     mode  as  a  baseline  for  comparison  with  the  CNG fuel  mode
     (negative numbers  mean lower  efficiency  or  less  acceleration
    .with CNG).

-------
                               -30-


 possibility  that  CO emission  increases  could go undetected by
 the  vehicle  operator in the  field.   Also,  the  Crown Victoria
 was  the only  vehicle  .with, lower  NOx emissions with CNG than
 with gasoline, but  the  gasoline NOx  levels exceeded  the  1.0
 g/mile NOx standard.             !

      Another clear  emissions trend indicated  in  Table 9  is that
 NOx  emissions can be .increased on CNG relative to gasoline.[3]
 While two  of the vehicles showed  slight improvements with  NOx
 on CNG, three  of  the vehicles  suffered  increases in NOx.  With
 two  of  the   three dual-fuel   vehicles  tested by EPA,   the
 increases were large enough to  caiuse the vehicles to  exceed  the
 1.0  gpm NOx  passenger  car standard on CNG.  NOx emissions from
 CNG  vehicles are  a  concern for  two reasons:   the  desirability
 of  burning CNG  fuel  at  lean  air-to-fuel  ratios;  and  because
 advanced spark timing is often used to compensate for methane's
 lower  flame   speed and   thereby  improve  performance.   Both
 conditions  in principle  will  tend   to   c«mse   higher   NOx
 emissions.    CNG  Fuel  Systems  provided  data  to  EPA  that
• suggested i that NOx  emissions  would be  increased by  55  percent
 on the Delta  88 if timing were  advanced  by a typical margin.[10]

    .  :These recent 'EPA  -test "data :suggest  the need  for  further
 work :.in .this  area.  The .data .show  that  the promise  for  NOx
-levels, comparable .to rthose .from gasoline-fueled cars is there,
 but  clearly   more  work  is  needed.    Clearly,  the dual-fuel
 vehicles have  the potential  to  provide  very large  CO  emission
 reductions  when operated on CNG.   The specific magnitude of CO
 emission reductions that  are  achievable  will  depend  on  the
 ability of in-use vehicles to maintain  low CO calibrations as
 well  as the need  for any design tradeoffs to provide acceptable
 NOx levels.

      Dedicated CNG Vehicles

      CNG is such a different  fuel than gasoline, that there  are
many  reasons  to expect that the optimum engine for  CNG  will be
much  different than today's  CNG  dual-fuel  ssngines.   Such an
engine  would   likely provide  greater emission  reductions  and
better   performance  and  efficiency   than  are  available  from
;dual-fuel engines.

      For   improved  efficiency   and   lower   CO  emissions,  the
optimum  CNG  engine  should be   a  high  compression,  lean  burn
engine.   CNG  optimization may be  more  challenging   in  this
regard  than methanol  because  of  its  relatively  higher  flame
temperature  and slower  flame  speed.   The key to such  a design
is  to   reap    the   efficiency    and   CO   benefits    of   a  high
compressions  lean  burn engine  while maintaining NOx emissions
within acceptable  levels.[3]

-------
                               -31-


      The  only  reported attempt  to  date to  design,  build,  and
 evaluate  a vehicle  which  might be  an  example of  an optimized
 dedicated CNG vehicle  was- .undertaken by Ford Motor  Company in
 1983.  Ford  built and  leased 27 dedicated  CNG Ranger  pickup
 trucks  in cooperation  with the  American  Gas  Association  and
 member utilities.  These trucks were designed to meet  the 1984
 LDT  standards of  0.8 g/mile HC,  10.0 g/mile  CO,  and 2.3 g/mile
 NOx.  No  dedicated CNG vehicles  have  ever  been  designed  and
 built to  meet the current  LDV standards of  0.41 g/mile HC,  3.4
 g/mile CO, and 1.0 g/mile  NOx  or more  stringent  standards such
 as are being  considered for future vehicles.

      The 2.3-liter gasoline engine used in the 1984 Ford Ranger
 was modified  to  improve it for CNG utilization including higher
 compression  ratio  (12.8:1  instead  of  9.0:1)   and  advanced
 timing.   The original  design  objective was  to  match the power
 output and efficiency of the gasoline  Ranger.  The final engine
 met  these goals,  though  with  reduced  vehicle   range.til]
 Emissions  data from  three low-mileage Rangers,  two fueled with
 CNG 
-------
                            Table 10

           Exhaust Emissions from Low-Mileage CNG and
                    Gasoline Ford Ranger [1]
      (grams per mile over the EPA Federal test procedure)
Test Site
Ford-1984
Ford-1984
EPA-1988
„ Fuel
Gasoline
CNG
CNG
NMHC
0.20
0.14
0.14[2]
CO
3.2
0.03
0.04
NOx
1.1
1.9
2.0
[1]  Taken from references 1 and 3.

[2]  Non-methane HC was  calculated assuming that  methane was 90
     percent.of CNG-HC .emissions.

-------
                               -33-


 emissions  is  subject  to  uncertainty.   Nevertheless,   large
 reductions (e.g.  80 percent) in the overall NMHC emissions from
 dedicated CNG-fueled vehicles .appear possible since evaporative
 emissions and running  loss  emissions  are  projected to be zero.
 With careful development we also project  that  refueling  losses
 of NMHC  can also  be eliminated.   Balancing the large  CO  and
 NMHC reductions  possible  with a  dedicated  CNG-fueled  vehicle
 with the degree  of NOx  control  necessary  will  be the  most
 difficult technical  area and is  clearly one  in which  more
 research, development,  and demonstration is necessary.

 Air Toxics and Global Warming

     Air  toxic  emissions  from cars are a  function of the fuel
 type,  engine type,  and emission  control system.   For vehicles
 fueled    only   with   natural  gas,   several   advantages   are
 immediately  apparent.   CNG  contains  no   benzene,  so  benzene
 emissions from  refueling  running  losses and  running losses .can
 be assumed to be  zero.   Exhaust  emissions of  benzene are very
 low.   Similarly,  'the emissions of  gasoline vapors  are zero and
 the emissions of  polycyclic  organic   emissions  are  also  very
 low.  When, considering .the  toxic .emission .risk from CNG-fueled
 vehicles,  only  -exhaust   benzene,  exhaust   1,3-butadiene,  and
 direct   and  .indirect   formaldehyde   emissions  are . of  real
.concern.   When, -the .emissions  and   potency   are  considered
 together,  the exhaust  emissions  from  CNG-fueled  cars  can be
 more  than 90  percent  lower  in  toxic  impact  compared  to
 gasoline-fueled vehicles.[13]

     For  global  warming concerns  CNG has an apparent advantage
 over gasoline due  to  its hydrogen-to-carbon  ratio.   However,
 carbon dioxide is not the only pollutant of  concern when global
 warming is considered.  For  this  analysis,  we are assuming that
 CFC emissions from motor vehicles will be  controlled  eventually
 via material  substitution.    With  this  assumption,  the  only
 pollutants  of  interest  are  COa,  methane  (CH4),   and  nitrous
 oxide (NjO).  This analysis  is  incomplete in  that  it does not
 include   the  global  warming   impact  of   fuel   production,
 processing, transport and  distribution.

     To  account  for  the  global  warming  effects  of  pollutants
 other  than  CO*,   emission  of these  other  pollutants  can be
 converted into  CO*  eguivalents by considering  their .relative
 global  warming  reactivity.   Relative warming estimates   for
 methane   (CH4)  and  nitrous   oxide  (N*0)   appear   in  reference
 14.  On  a mass basis these  were  determined  to  be  approximately
 50  for CH« and 230  for  NaO.

-------
                               -34-


      Another  evaluation  of  the global  warming impact  of CH4
 and  NjO   is  contained  in  reference  15.    Converting  the
 molecule values from Table  2  of that report,  values from 16 to
 116  can  be  associated,  with  CH4   and 286   to  449  can  be
 associated with N2O for relative global  warming  impact.

      The  estimates  of  the  global  warming impact  of  CH«  and
 N2O relative  to  CO* show a large  range.   It  should  be noted
 that the  value  of the  relative impact is  an active  area of
 research  and that  assigning a,  single value  to  the relative
 impact   of  CH4  and N2O  might  be controversial at  this time.
 More work  is  clearly  needed  in  this  area  to  refine  these
 relative impact factors.

      The  overall   global  warming  index,  GWI,   will  be   a
 combination  of  the CO*,   CH4 ,•   and N2O  emissions  from  the
 vehicle and the relative global  warming impact  factors  assigned
 to CH«  and N2O.   In general:

      GWI   *     CO* -I-  a CH4  * b NzO - GWI  
-------
                           -35-
                         Table  11

             Calculated Global  Warming  Index,
             Gasoline and CNG-Fueled Vehicles
Vehicle
Delta 88
Delta 88
Crown Victoria
Crown Victoria
Celebrity
Celebrity

Fuel
Gasoline
CNG
Gasoline
CNG
Gasoline
CNG
GWI for
CQ2 CH4
(q/mi) (q/mi)
632 0.145
464 2.456
582 0.103
429 3.164
435 0.024
354 1.478
N20*
(q/mi) GWI
0.015
0.015
0.015
0.015
0.015
0.015
(65,300)
646
628
593
639
441
455
Three Values of CH4
Relative Impact

.Vehicle
Delta 88
Delta 88
Crown Victoria
Crown Victoria
Celebrity
Celebrity

Fuel
Gasoline
CNG
Gasoline
GNG
Gasoline
CNG
GWI
(16,300) (
639
508
588
484
440
382
GWI
65,300)
646
628
593
639
441
455
GWI
(116,300)
653
753
598
801
442
530
NZO  was  not  measured  in  this  test  program;   the  same
nominal value is used for all entries.

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                              -36-


     In  reference  18,  a  summary of  NZO  values  is  provided.
The values  in Table 1 of that paper range from 4.8 to 101 mg/mi
NaO, with an  average .value  of  52 mg/mi.   Using  52  mg/mi  in
the  calculations  in  the  above table  (instead of the  15 mg/mi
used) would increase the GWI  (35,300)  values by  approximately
11  units,  but it  would  not change  the  rankingT   Given  the
spread  in  the  values  summarized  in   reference   18,  it  would
appear,  however,  that  measured N2O  data  is  a desirable  part
of any estimates  of global  warming impact,  and measurements  of
CO2,  CH4,  and   NZO  from  a  variety  of  engines  and  fuels
would be  the  minimum needed  before  a definitive  ranking could
be attempted.   Clearly more work is needed in this area.

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                              -37-
                                                        4



. ENVIRONMENTAL IMPACTS OF CNG USE

                           References

      1.     "Emissions,   Fuel   Economy,    and   Performance   of
 Light-Duty CNG  and Dual-Fuel  Vehicles,"  Bruetsch, Robert  I.,
 U.S.  EPA,  EPA/AA/CTAB/88-05, June 1988.

      2.     "Definition  of   a   Low-Emission  Motor  Vehicle  In
 Compliance With the Mandates of Health  and Safety Code Section
 39037.05  (Assembly Bill  234,  Leonard,  1987),," California  Air
 Resources  Board,  Mobile Source Division,  El Monte,  CA, May 19,
 1989.

      3.     "Motor   Vehicle  Emission   Characteristics   and  Air
 Quality impacts of Methanol  and Compressed Natural Gas,"  Alson,
 Jeffrey A.,  Jpnathon  M. Adler  and  Thomas M.  Baines,  U.S. EPA,
 Office of Mobile Sources, January 1989.

     .4.     "Emission ..Factors .for  SAI..Runs .With  CNG  and Neat
Methanol,"  U.S.  EPA,  Memorandum from Phil  Lorang,  Office  of
Mobile Sources,.to .Gene .Durham, Air Economics Branch, September
 19, .1989.

     5.     "Guidance  on   Estimating  Motor   Vehicle  Emission
Reductions  From  the Use of Alternative  Fuels and Fuel Blends,"
U.S. EPA, EPA/AA/TSS/PA/87-04, January 29,  1988.

     6.     "The   Emission  Characteristics   of   Methanol  and
Compressed  Natural Gas in  Light Vehicles," Alson,  Jeffrey A.,
U.S. EPA,'APCA Paper 88-99.3, June 1988.

     7.    "Effects"  of   Emission    Standards   On   Methanol
Vehicle-Related  Ozone,  Formaldehyde,   and  Methanol  Exposure,"
Gold, Michael D.   and Charles  E. Moulis,  U.S. EPA,  APCA Paper
88-41.4,  June 1988.

     8.    "Evaluation  of  Dual Fuel Systems,  Inc.'s  Compressed
Natural Gas/Gasoline  Dual Fuel Conversion System,"  California
Air Resources. Board, 1983.

     9.    Memorandum  from  Rod  Summerfield,   Chief,  Standards
Development and Support Branch  to K.  D.  Drachand, Chief,  Mobile
Source Division,   California Air  Resources Board,  October 29,
1986.

     10.    Letter  from  Stephen  Carter, vice President, CNG Fuel
Systems to Richard  Polich, Consumers Power,  December 3, 1987.

-------
       11.   "The  Development  of  Ford's  Natural  Gas  Powered
  Ranger," Adams, T., Ford Motor  Company, SAE Paper 852277, March
  1985.

       12.   Concerns for  CNG  Conversion  Emissions  Durability,
  letter from James  M.  Lents, South Coast Air Quality Management
  District,   El  Monte,   CA,  to   the   Honorable  Henry  Waxman,
  Congressman,  House of  Representatives,  Washington,  DC, October
  2, 1989.

       13.   Testimony   of   William  G.   Rosenberg,   Assistant
  Administrator  of   Air   and   Radiation  U.S.   Environmental
  Protection Agency,  before the Committee on Energy  and Natural
  Resources, United States  Senate,  October 17,  1989, page 4 and
  Chart 6.

       14.   Future  Atmospheric  Carbon  Dioxide  Scenarios  and
  Limitation   Strategies,   J.  " A.   Edmonds,    et   al.,   Noyes
  Publications,  Park  Ridge N.J.,  1986.

       15.    "Comparing- the Impacts  of  Different Transportation
•Fuels On  the  Greenhouse  Effect," a. Consultant Report  to the
.California Energy  Commission,  by  Acurex Corporation,  Report
  E500-89-001, April  1989.

       16.    Compilation  of  Air Pollutant Emission Factors Volume
  II;   Mobile Sources, AP-42,  Fourth  Edition, September  1985.

       17.    Regulated  and  Unregulated  Exhaust  Emissions   From
  Malfunctioning   Three-Way   Catalyst   Gasoline   Automobiles,
  EPA-460/3-80-004, January  1980.

       18.    "Nitrous  Oxide N20  In  Engines  Exhaust  Gases  -  A
  First Appraisal of  Catalyst Impact,"  SAE  Paper 890492, Prigent,
  M. and G.  DeSoete.

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                              -39-
 OTHER ISSUES

 Safety

      Safety-related  issues  affect:  three  areas  of. utilization of
 compressed  natural  gas:   Theses  broad  areas;  encompass:    l)
 transport to  and storage  at  the refueling  site,  2)  vehicle
 refueling,  and  3)   onboard vehicle safety.   These areas  have
 been addressed by guidelines,  requirements,  and  standards  set
 by  the   following:   U.S.   Department  of Transportation  (DOT),
 National  Fire  Protection  (NFPA), Compressed  Gas  Association
 (CGA), and the American Gas Association (AGA).

      DOT  is  responsible  for  the  safe  transport of  hazardous
 materials.   Natural  gas   falls   into  this  designation.   DOT
 guidance  establishes both  maximum operating  and burst pressure
 'for  cylinders; the  type of testing [1] required before  use and
 periodically   during  the  cylinder   lifetime,   and  allowable
 contaminants   in . the . compressed  natural   gas   to   prevent
 corrosion.   It should  be  noted that the DOT guidance applies to
.commercial shipments of industrial gases,  not: to vehicle  fuel
 containers.

     The  CGA has published a  pamphlet  S-l.l  which is  used by
 DOT  in   its  regulation  of  pressure  safety  devices.   These
 pressure  safety  devices  are  used to  reduce  cylinder  pressures
 in the event of overfilling or  exposure  to  fire.   They keep the
 cylinders  from bursting or exploding.   These devices can  be a
 rupture disc, a fusible plug, or a combination of both.

     The  NFPA  established  NFPA52  which  is a  standard for  "CNG
 vehicle   fuel . systems."    This   standard   established  design
 criteria  for  gas  quality,  cylinder  .location,  venting,  and
 support systems  in  the vehicle.   It defines,  for example, the
 level of  force that the  supporting structure  mus.t  be  able to
 withstand.

     The  AGA in their .publication No.  1-85,  "AGA  Requirements
 for  Natural  .Gas'Vehicle   (CNG)  Conversion Kits,"  established
 guidelines  for   the  safe  design  and  construction  of  CNG
vehicles.[2]

     Natural gas vehicles  have seen  significant utilization  in
 fleet-type applications  in various parts  of  the United States
 and  for   that  matter  in  various  parts  of  the world.    This
 utilization  has   lead  to  a  body of  experience with  vehicle
 safety that would appear  to  give CNG a  reasonably  good safety
 reputation.   It  should be considered  though that  much of  the
 experience in the U.S. is  fleet-type  with trained operators  and
 refueling  attendants.   Further  studies should be  pursued  to
quantify  the  affects,,  if any,,   of  moving  from  fleet   type
 applications to utilization by  the general  public.

-------
                               -40-
 Reduced Maintenance
1
      The potential  of  reducing  consumer  operational  cost  is
 generally   raised   in   discussions   concerning  the  use  of       •
.compressed natural gas.  The potential exists but more work is       |
 needed  to  define  the benefits  accurately;  better  data are
 needed.                                                                -

      Such data could  be generated through  a series  of  engine       *
 dynamometer and  vehicle  fleet  tests  each of  which could  be
 specifically  designed  to  obtain  the  necessary  comparative       |
 data.   For  example,  industry standard tests of  oils  could be       a
 used  to  compare  gasoline  only,  CNG only,   and  alternating
 gasoline and CNG  use  on properties  important for oil quality,
 lubrication,   and   wear.    Additional   engine   dynamometer
 evaluations of spark  plug life  and  valvetrain  wear could also
 be  conducted.    For   vehicle   tests,    fleets    of   matched
 gasoline-only,     CNG-only,     and    alternating    CNG    and       f
 gasoline-fueled vehicles  could  be  run  on t€>st  tracks   or  in       *
 fleet  use such as  in  taxicabs to generate comparative measured
 data on  fuel consumption, performance, range, oil contaminants,       \
..driveability,  and .engine wear.                                         ^

 Performance and Fuel Economy                                           i
                                                                       5
     The  properties of fuel economy  and performance are closely       '
 related,  especially when comparing  vehicle  operation  on two
different fuels.    It  is  known  that  fuel  economy  is inversely       •
proportional  to   increases   in   vehicle  weight.[3]   Vehicle       <
performance,  in terms  of  the time it takes to accelerate from
zero to 60 miles  per hour,  is  greatly influenced by the maximum       <
horsepower  of  the  engine.  When comparing  the  fuel economy of       ,
two  distinct fuels, it is important  to  take into  account any
differences   in   the   power  output,   inertia   weight,  and
performance  of the  vehicle(s)  used  to  make  this comparison.
The  parameters of  fuel economy,  performance,  horsepower, and
inertia  weight are  related  by  the   following  two expressions
which  were  developed  by regression of data measured from 1978
through 1987 model year gasoline-fueled vehicles.[4]

-------
                              -41-
               T =   0.82(HP/1W) -°-'a                        (1)



           %AMPG =  (0.454)%AT                                (2)

      Where:

              T  =•   0 to 60 MPH performance time (seconds)

            HP  =   Horsepower

            IW  =»   Inertia weiglat (Ibs)

          %AMPG  «•   Percent change in fuel economy (%)

           %AT  a«   Percent  change in  0  to  60  MPH performance
                     time (%)

     .Dual-fuel (CNG/gasoline) vehicles  are;slower  and less fuel
.efficient  when operating on CNG than when using, gasoline due to
.CNG.'s  poorer  volumetric efficiency,  and  the  additional  weight
;of -multiple  CNG fuel .tanks.   Since  CNG  is a gaseous  fuel,  it
displaces  air  in the  combustion  chamber,  which  accounts  for
lower  volumetric  efficiency  of   engines  that  use  CNG.   Most
dual-fuel  vehicles  carry at least  two CNG  cylinder  tanks  which
are usually made of fiber-reinforced steel,  though they can be
made  of aluminum and other  composites.   The  added weight  of
these  tanks   plus  their  fuel  capacity  must  be  supported  by
additional vehicle  structure,  and secured to  the  vehicle  by
brackets.  This added structural  weight may average roughly 70
percent of the weight of the CNG cylinders.[5]

     In the EPA  study of light-duty dedicated and dual-fuel CNG
vehicles,  gasoline-equivalent city fuel economy was  improved on
CNG  relative   to  gasoline  operation  on  5  of   6  vehicle
configurations  tested  by amount!?  ranging  from  1  to 12 percent
(average of 5 percent).[6]   Only the  Chevrolet Celebrity in its
first  calibration .test sequence showed a  2 percent decrease in
gasoline equivalent.fuel economy.   These results,  though  on an
energy  equivalent  basis,   are  misleading  since  they do  not
account for the added weight of the  extra  fuel  systems,  or the
degraded performance of these vehicles when using  CNG.

     The  dynamometer  5  to  60  MPH   acceleration   performance
measured on the  EPA  tested  dual-fuel  vehicles was  significantly
degraded by an average of  about 29  percent on CNG  relative to
gasoline  operation at  a  constant vehicle  weight.   Using the
equation for  fuel economy  as a  function of vehicle  performance

-------
                               -42-


  (equation  2),  a  29  percent  increase  in performance  time is
  equivalent to  a 13  percent decrease in  fuel  economy with  CNG.
 .Adjusting  the  average gasoline-equivalent  city  fuel  economy
  measured  on  the EPA test  fleet  for  performance  yields an
  average 8  percent decrease in fuel economy for CNG relative to
  gasoline operation  at a  constant vehicle weight.   Equation 2
  predicts the  percent  decrease in  fuel  economy is 45.4 percent
  of the percent increase, in performance time  since it  is based
  on   gasoline   vehicle  data.    Regression  of.   the   EPA  CNG
  performance data show this decrease in fuel economy is close to
  20 percent of the percent increase in performance time, or a 6
  percent decrease  in gasoline-equivalent , fuel  economy  for  CNG,
  i.e., 1 percent below gasoline MPG).

      In addition  to the  fuel  economy penalty for performance,
  the CNG fuel  economy numbers must be  adjusted  to account for
 the higher inertia  weight of these  vehicles  relative  to their
 gasoline-only   counterparts.    The  most  commonly   used  gas
 cylinders  for  passenger car CNG fuel are either 14 inches  x 40
 •inches--fiber-reinforced steel  or 13 inches x 42  inches  aluminum
 composite  fuel tanks.[7]  Both tanks have a service pressure of
 3000 . psi.  .Although  the ...aluminum  tanks ..are  lighter   weight
 .(roughly .110  -Ibs.  'empty)  and   must   meet   the same   safety
..standards,  .the . more .commonly used  production  .units   are the
 •steel ..tanks .  at  an  empty weight  of  176  Ibs.  apiece.  The
 dual-fuel  vehicles  tested  by  EPA  were equipped  with  two  such
 tanks each,  and the. dedicated CNG  light-duty truck had three
 CNG fuel tanks onboard.

     As mentioned above, the addition of the CNG  fuel tanks for
 both  dual-fuel  and  dedicated CNG  vehicles propagates  the  need
 for additional vehicle structural  weight  to  support the  weight
 of  the CNG fuel tanks when filled to capacity.   The weight of
 the CNG fuel  used  in  the EPA  test vehicles  was 0.047  Ib/ft1
 and the capacity of  the  steel  containers is  670 ft3 of  CNG.
 Each tank of CNG has a capacity of slightly more  than 30  pounds
 of  CNG fuel.   Therefore, the additional  weight: of just  the full
 steel  fuel  tanks of the EPA  test  vehicles was roughly 415 Ibs
 for  dual-fuel  vehicles  and  622  Ibs.   for  the  dedicated CNG
 light-duty  truck.    The  average weight  compounding factors,  to
 account  for-.the  added vehicle structural  support, are 1.7 for
 dual-fuel vehicles and.1.25 for dedicated CNG vehicles.[5,8,9]
 Therefore,  the total  increase  in weight of these vehicles  over
 the weight  of  their gasoline-only  counterparts is estimated  to
 be  700 Ibs.  for dual-fuel vehicles (480  Ibs with aluminum)   and
 775 Ibs  for the dedicated. CNG  light-duty truck  (530  Ibs  with
 aluminum).

     Knowing  the baseline  gasoline vehicle inertia weights and
 the measured  performance  for  both CNG  and gasoline  operation.
 Equation 1  was  used to determine the maximum  horsepower  of the

-------
                              -43-


 vehicle engines on both  fuels  (see Table 12).  The  CNG  engine
 horsepower  was then  inserted back  into  Equation  1  using  the
 higher  inertia  weights  as  determined  above  to  estimate  the
 effect on performance  of the  additional  weight.   The  average
 effect of  additional weight was  an  increase  in  0  to 60  MPH
 times   of  15  percent.    Using  Equation  2,   these  degraded
 performance   values  translate  to   an  additional  fuel  economy
 penalty of  roughly 7  percent (3 percent with the  EPA regressed
 CNG data).    It should be noted that this  increased weight also
 reduces  the  fuel economy  of  the  dual-fuel   vehicle   when
 operating on gasoline.

     Using   equation  1  again  with the   adjusted  CNG  inertia
 weights  and  performance" values,  yields  adjusted  CNG  engine
 horsepower  values which  are  on the  average  over  30  percent
 lower  than  the  engine horsepower  obtained, when  operating the
 vehicles  on  gasoline.

 Vehicle Range

     The  Alternative  Motor  Fuels  Act of   1988,  (Public  Law
 100-494, ..October  14, . 1988)., . Section   6(a)   requires that  the
 Secretary of.^Transportation  establish a  minimum  driving range
 of  no   less  than 200  miles  for  dual  energy  automobiles when
 operating .on .alcohol  and  an  unspecified   minimum  range  for
 natural  gas.   This minimum  range  requirement pertains  only to
 passenger  cars  and  does  not  apply to  light  trucks. [10]   At
 present,  the minimum  range  for  natural  gas   dual   energy
 automobiles  (those vehicles  which operate  on natural  gas and
 either   gasoline  or  diesel  fuel)   being  given   the  most
 consideration is 100 miles.[11]

     Vehicle  driving  range  was not determined during  the EPA
 light-duty   CNG  and  dual-fuel   vehicle   test  program.[12]
Vehicles  were simply, run on CNG  over  the FTP  and HFET  cycles
 (plus 10  accelerations per test sequence)  until they  ran  out of
 CNG.   Vehicles were  then  refueled if  further CNG  tests were
 required, and the vehicle mileage?  was  recorded at the beginning
 of each test cycle.   The  exact: mileage when vehicles ran  out of
 CNG  was not  determinable and  some vehicles  were returned to
vehicle  suppliers., after  .testing with  an undetermined amount of
 CNG  fuel  still  in :their .tanks.  From the  test  dates, number of
vehicle  preps run, and'-mileage records,  the following observed
minimum' driving range estimates were  determined  from  the EPA
 test program  data.

     Two  values  of range are listed below.   The first value  is
 the  observed range as discussed above.   The second  value is a
 calculated range  based on the Ml?G values  from line  10  in Table
 12  and  an  assumed effective  tank capacity equivalant  to  10
 gallons of gasoline.   This  is about what  one would project from
 two  CNG steel fuel tanks  (each with the  storage equivalent  to
 5.5  gallons   of  gasoline) if one  would allow  for a one-gallon
 reserve when  computing a vehicle's range.

-------
                                  -44-
                                Table 12
            Fuel Economy Adjustment for  the Additional Weight
                    of CNG/Gasoline Dual-Fuel Vehicles
  [1] Dual-Fuel
       Vehicle
           Crown
                    Crown
  [2]

  [3] Tct

  [4]

  [5] Tg

  [6] HPHo

  [7] GEFEi

  C8] IW*

  [9] TCa

 [10] GEFE2

 [11] (10)-(7)
        (7)
Delta 88 Victorial Victoria2 Celebrityl Celebritv2
                                          3250
[12]

[13] (12)/(6)
 4000

 14.8

117.4

 11.4

161.5

 15.3

 4700

 16.9

 14.3

 -6.4



143.9

 1.12
 4250

 13.3

142.1

 10.8

183.2

 16.0

 4950

 15.1

 15.0

  6.1



143.0

 1.28
 4250

 14.2

131.2

 10.8

183.2

 16.7

 4950

 16.1

 15.7

 -6.1



135.2

 1.36
 3250

 13.7

104.8

 10.6

143.4

 19.8

 3950

 16.1

 18.2

 -7.9



104.7

 1.37
                                          14.0

                                         102/1

                                          10.5

                                         145.0

                                          21.9

                                          3950

                                          16.4

                                          20.2

                                          -7.9



                                         102.3

                                          1.42
 [1]   Dual-fuel vehicles tested by EPA.
 [2]   Inertia  weight of  the  gasoline  certification counterparts  to
       the dual-fuel vehicles in (1) (Ibs).
 [3]   Measured dynamometer  5 to 60 MPH performance of  the  dual-fuel
       vehicles using CNG (seconds).
 [4]   Calculated CNG engine horsepower using (2) and (3) in
       Equation 1 (HP).
 [5]   Measured dynamometer  5 to 60 MPH performance of  the  dual-fuel
     .  vehicles using gasoline (HO)  (seconds).
 [6]   Calculated  gasoline  engine  horsepower  using  (2)  and  (5)  in
       Equation 1 (HP).
 [7]   Measured gasoline equivalent  fuel.economy of dual-fuel
       vehicles using CNG (MPG).
 [8]   Adjusted inertia weight of dual-fuel vehicles to account for
       added fuel tanks,  support, etc.  = (2) + 700 Ibs (Ibs).
 [9]   Calculated 0 to 60 MPH performance of the dual-fuel vehicles
       using CNG.   Uses (4) and (8)  in Equation 1 (seconds).
[10]   Calculated  gasoline   equivalent   fuel  economy   of  dual-fuel
       vehicles using CNG showing effect of slower performance (MPG).
[11]   Percent change  in CNG gasoline  equivalent fuel  economy  due to
       slower performance (percent).
[12]   Calculated CNG engine horsepower using (8) and (9) in
       Equation 1 (HP).
[13]   Ratio of calculated gasoline and adjusted CNG
       engine horsepowers.

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                              -45-


               Vehicle Range for Dual Fuel Vehicles

                                              Calculated Range
                                               Assuming 2 CNG
                   Observed Range During      Cylinders and MPG
                     During Laboratory     from line 10 Table 12
 Vehicle              Testing (miles)       (1 gallon reserve)

 Oldsmobile  Delta  88          135                      143
 Ford Grown  Victoria          143                      154
 Chevrolet Celebrity           85                      163

      The  CNG  driving  ranges  listed  above  reflect  the  maximum
 number  of  continuous CNG-fueled  miles obtainesd during  the EPA
 test program  before  a vehicle  was  either  returned  to  its
 supplier  (Delta  88,  Ranger)  or  refueled  for further  testing
 (Crown   Victoria,  Celebrity).   Because   mileages   were  not
 recorded  at the  start  of  vehicle preps, or  during performance
 testing,  it  is  difficult to  determine  the  maximum  driving
 ranges  of these vehicles.

      With  the . exception, of . the ^Celebrity  vehicle, all  of the
 other  light  vehicles  :.tested  by  EPA  would  meet  a  minimum
.requirement  of   100 .miles .now  under  consideration  for  dual
:energy  natural gas .vehicles.

      The National Highway  Traffic Safety Administration (NHTSA)
 is  in the process of determining the  minimum driving range for
dual-fuel passenger automobiles as  required  by  the Alternative
Motor Fuels Act  of 1988.[13]  For  reference, NHTSA conducted a
quantitative   study  of the  driving   range  of  conventional
gasoline-fueled passenger  cars using the 25  top-selling cars of
model year  1988  (63 percent  of  total  1988  car  sales).   Their
results  show  an  average  minimum driving  range  is  405 miles,
with an average lowest combined EPA  fuel economy  rating of 25.4
MPG, and average  fuel tank capacity of 16.1 gallons.

     The Alternative Motor Fuels Act  of 1988 also defines the
gasoline equivalency of natural gas in  natural gas fuel  tanks.
Section  6(c)   states  that  "...100   cubic  feet  of  natural gas
shall be  considered  to contain   0.823  gallons  equivalent  of
(gasoline)  fuel...."[10]  Since  the  steel  cylinders normally
have  a  capacity  of  670 ft"  CNG  (575  ftj  CNG  for  aluminum),
the  CNG  fuel  tanks   when,  filled  to  capacity   contain   5.5
gasoline-equivalent gallons (4.7 gallons for  aluminum).[14]

     Assuming the ratio  of combined EPA CNG  gasoline-equivalent
fuel  economy  to combined  EPA gasoline fuel economy observed  in
the  EPA test .program   (=  1.04  without  weight and performance
penalties) can be applied  to the NHTSA  derived 25.4 MPG  average
1988 model year gasoline vehicle  fuel  economy, the combined  CNG
gasoline-equivalent fuel economy would be  26.4  MPG.  Applying

-------
                               -46-


  the  CNG fuel tank capacity determined above, yields a CNG fuel
  tank range  of  145 miles (124 miles  for  aluminum).   This would
•mean a vehicle need  only  be .equipped with  one  large CNG fuel
 .cylinder  and one  smaller CNG fuel  cylinder  to meet  a minimum
  driving  range  of  200  miles.   In other words, multiple CNG tank
  dual-fuel vehicles  such as were tested  by EPA,  could possibly
  meet a 200-mile range, without additional  fuel  tanks or other
  added vehicle weight using the NHTSA methodology..

      In   a   separate   study,  the   Department   of   Energy  has
  estimated the  range of CNG  vehicles to be  between 80 and 200
  miles.[15]

      Of  course,  trying to match, the  average  gasoline vehicle
  driving  range  would be difficult  for a natural gas dual  energy
 vehicle,  and would  require at  least  three (possibly four) CNG
  fuel  cylinders  onboard.  The doubling of  fuel  capacity would
 constrain cargo space  considerably,  and would require a vehicle
  inertia  weight   over   35   percent   heavier  than  that  of   a
-comparable  gasoline  vehicle.   Performance  would  be  further
 degraded  and the  fuel  economy  penalty  would  double that seen
.with conventional  two-tank  CNG dual-fuel  vehicles.

      The. setting  of a minimum driving  range  for dual-energy
 automobiles, must  .balance  the needs  of  the consumer with the
 technical and  economic considerations  that are  faced  by the
 manufacturers.   A. low minimum  driving range requirement might
 encourage the  production  of  dual-fueled  cars,  but  lead   to
 dual-fueled   cars  being  designed  with  such a  low  alternative
 fuel  driving range that consumers do not  buy them  or, even  if
 they buy them,  infrequently operate  them  on  the  alternative
 fuel.   Conversely,  an excessively  stringent   minimum driving
 range   requirement    might   discourage    the   production    of
 dual-fueled   cars  and  unnecessarily  compromise  other vehicle
 attributes and aspects  of  performance.  Manufacturers would  be
 discouraged  by  overly  stringent  minimum range because  a vehicle
 which does  not  meet the minimum  driving range for its type  is
 by definition  excluded from  the  definition of  dual-energy  or
 natural  gas  dual  energy vehicle,  and  is  thus unlikely to  be
 built since the  manufacturer  would not  receive  any  of  the
 benefits or  incentives .provided  by the Act.

      From the .viewpoint  of the consumer,  the necessary  driving
 range is dictated by considerations  unrelated  to  AMFA, such  as
 the   convenience  of a   range  that  permits  a  typical  workweek
 travel  distance,  or a daily travel  distance for  a  fleet  car.
 If the majority of consumers would  use a dual-energy vehicle in
 an urban  area  with more  refueling  stations  or  in  a  fleet
 application  with  a  central refueling  station,  a  large  driving
 range may be less  critical.

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                              -47-


      Performance   and   range   for   CNG-fueled   vehicles   are
 important issues.  Surveys of  CNG-fueled vehicle  operators  have
 indicated   that  the  major   problems  reported  were   fueling
 inconvenience,  power   and  performance,   and  limited   range.
 Assuming  the  infrastructure   can  provide   convenient.   fast
 fueling, only performance and range  remain  as major  concerns:
 The  more competitive CNG-fueled  vehicles  are to gasoline-fueled
 vehicles, the easier  the transition to  increased use  of  CNG
 will  be.

      Problems with performance and range  for today's  CNG-fueled
 cars   are   primarily  attributable  to  dual-fuel  CNG/gasoline
 applications.    If   dedicated,  optimized   CNG   vehicles   are
 considered,  then there  is  no  reason  why  such  a  dedicated,
 optimized   vehicle   could  not  be   competitive  with  today's
 gasoline-fueled  cars.   Integration  of  the  fuel   tanks   and
 supporting  structure into  the  initial vehicle design instead of
 just  adding the fuel tanks to an  existing  vehicle is bound to
 have  overall vehicle  weight  benefits.   Current  research  into
 advanced  adsorbent  storage  mechanisms  for  natural  gas  [16]
 could also  provide  substantial  benefits  in  CNG-fueled  vehicle
 range.

     One drawback .to dedicated  CNG  light-duty vehicles   is  the
 availability  of  fuel since they require  100 percent  access to
 CNG.   To the extent that  dedicated CNG vehicles penetrate the
 market,  the  volumes  of  fuel  necessitated  by  demand  could
 increase,  which could also increase  the costs of  infrastructure
 and fuel delivery.

     It appears that  the optimized dedicated  vehicle  is  the
most  attractive use  of  CNG  in  the transportation sector.   It
 also  appears that  more  efforts  are  needed  to  determine  the
 optimum engine  configuration,  fuel metering  system, and  fuel
 storage -technology  for  this promising  fuel.  For  example,  the
work being  sponsored by  the  Gas Research Institute  in advanced
 fuel  metering,  improved  storage media, lean burn and fast burn
 engines, prechamber  engines,  and  other  technological advances
 is the type of  work  that is necessary to extract the best from
natural gas  as a vehicle fuel.

     The potential  for  increased  efficiency and  power  for a
dedicated CNG application is  great.  Harnessing this potential
 is of  more  than  just academic  interest  since  improved engine
power  and   increased  engine   efficiency  will  have  positive
 synergistic    effects  on  the   two  areas   shown   to   require
 improvement  based on  dual-fuel  results, vehicle  performance.
 and  range.    Improved  engine  power  will  allow  the  engine to
become  smaller  and  lighter  and  therefore, with  the weight
 compounding   effect  working   in  reverse,   make  the   vehicle
 lighter.  Increasing engine  efficiency  will allow a  smaller  and
 lighter gas tank for the same  range  or more  miles of range  with
the  same  fuel  tank.  The synergism appears via the fact  that

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                              -48-


 the lighter  weight vehicle, which can be  projected from  the
 increased  power  potential  will  provide better  fuel  economy,
.thus  adding  to  the . range,  and  the  smaller  and lighter  fuel
 tanks possible with increased efficiency will weigh  less,  thus
 resulting  in  a lighter weight, better performing vehicle.

     Fortunately,  when freed from the  necessity  of having  to
 run on  gasoline a dedicated CNG system can take, full advantage
 of  the  attractive characteristics  of natural  gas.  From  the
 standpoint  of  improving  power  and  increasing efficiency,  the
 most  important benefit of  natural  gas is its  very  high  octane
 number,  well   over  100.   Values  of 120 for  both research  and
 motor octane  numbers  are mentioned in reference 17.   Increasing
 the engine's  compression ratio is one  method  of improving power
 and increasing efficiency.   In  reference  17,  a  compression
 ratio  of  15.5:1  was  thought  to  be  optimum for  the  single
 combustion  chamber geometry  considered.  This resulted  in 15
 and 22 percent  increases  in power and efficiency,  respectively,
 compared to the base case 8.4:1 compression ratio.

     Boosting the engine can  also improve power and, indirectly
 via .lower   idle  fuel  .consumption  and  lighter engine  weight,
 improve  vehicle  .fuel .economy.    Boosting the engine  can  be
 .accomplished via.supercharging or turbocharging.

     Rapid  expansion  of  a compressed gas provides a  cooling
 effect.   The  use  of  rapidly expanded natural gas  to  cool the
 intake  charge  either via  a separate  heat   exchanger  or  by
 injecting  it   into  the  intake   system could increase  charge
 density and offset the volumetric efficiency  loss  due to  use of
 a gaseous fuel  in a premixed charge engine.

     Future   engine  design  for   natural  gas  use  will  also
 incorporate   optimized   combustion  chamber   designs.   Designs
 which provide  for  a  stable  reliable  ignition of  the natural
 gas/air mixture,  while also providing the degree  of turbulence
 needed to  enhance flame  propagation for efficient heat release
 patterns, need  to be identified.

     Considering   increased  compression   ratio,    boost,    and
 combustion  chamber  design,  there  may  be   a combination  of
 approaches, that  yields   the  best  performance and  efficiency
 relationship.    .This would  appear  to  be a.fruitful and needed
 research area.

     In  addition  to attractive octane characteristics, natural
 gas  also  can  be  operated  with  dilute air/fuel   ratios  foe
 improved efficiency.   Dilution  of  the  intake  charge  can be
 achieved by running a lean air/fuel mixture or by using EGR, or
 a combination of both.  The optimum strategy and calibration of
 charge  dilution  for  natural  gas  use  of  optimized, dedicated
 engines for light vehicles  has yet  to  be  determined.  As  might
be  expected,   there is  an interaction between  the  degree of

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                              -49-


charge  dilution   and   the  other  engine  parameters  such  as
compression   ratio,   boost,   and  combustion   chamber   design
discussed    previously.     Unconventional   approaches   toward
extracting the  most from  natural, gas  can  also be  considered.
Storage  of  the gas  at  high pressure  yields  several different
fuel  metering  possibilities  all  the  way  from  conventional
carburetion  to  direct  cylinder  injection of:  the  fuel.   In
reference  18,  eighteen  different   applications   of .possible
natural gas  fuel metering systems! .are  listed.   While not all of
the systems  may be  practical  for light-duty  vehicle use,  the
number  of   unexplored   or  partially  explored  fuel  metering
systems for  natural  gas  indicates that the optimum  system for
performance,  fuel   economy,  and  emissions  has   yet   to  be
determined.

     Impact On Home Heating

     There is  some concern  that  the  added usage  of compressed
natural gas  as  a motor  vehicle fuel could  drive up  the  cost of
home  heating.   In  accordance   with   the   provisions  of  the
Alternate Motor Fuels Act of 1988, the Department  of Energy, is
studying  this  .issue   and  should   be  publishing   a   report
addressing this subject later this year.

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                               -50-




 OTHER ISSUES

                            References


      1.    49 CFR 173.34.

      2.    "Gaseous Fuel Vehicle  Technology  State of  the Art,
 Draft  Report,"  prepared  by E.  A.  Mueller,  Inc.,   for  U.S.
 Department of Energy.

      3.    "Light-Duty Automotive Technology and  Fuel Economy
 Trends  Through  1989,"  Heavenrich,   Robert  M.  and  J. Dillard
 Murrell, U.S. EPA, Office of Mobile Sources,  EPA/AA/CTAB/89-04,
 May 1989.

      4.    "Adjusting  MPG for Constant Performance," memorandum
 from Karl ..H. Hellman to Charles L.  Gray,  Jr., U.S. EPA, Office
 of Mobile Sources, Ann Arbor,  MI,  May  19,  1986.

      5.    ..General Motors'  Comment  on Fuel  Economy Impacts  on
.Onboard  .Regulation,"   memorandum  from Chester  J.  France   to
 Richard D. Wilson, U.S. EPA, Office of Mobile Sources, July  23,
 1986.

      6.     "Emissions,   Fuel   Economy,   and   Performance   of
 Light-Duty CNG  and Dual-Fuel  Vehicles,"  Bruetsch,  Robert  I.,
 U.S.  EPA, EPA/AA/CTAB/88-05,  Jun€>  1988.

      7.     "CNG  Cylinder  Weights,"  letter  from  Chris  Bruch,
 Garretson Equipment Co.,  Inc.", to  Robert Bruetsch,  U.S. EPA,
 Office  of Mobile Sources, Ann Arbor, MI, October 18,  1989.

      8.     "Weight Propagation  and  Equivalent  Horsepower  for
 Alternate-Engined Cars,"  SAE Paper 780348, Klose,  Gerhard J  and
 Donald W.  Kurtz,  California Institute  of Technology,  March 1978.

      9.     Final  Regulatory  Impjict  Analysis;   Part  58'  Bumper
 Standard,   National . .Highway.: Traffic  Safety  -Administration,
 Office  of Program.and  Rulemaking Analysis,  May.1982.

      10.    "Alternate  Motor  Fuels  Act  of  1988,"  Public  Law
 100-494,  100th Congress,  102 STAT.2441,  U.S. Congress, October
 14, 11988.

      11.    Telephone   conversation with  Orron  Kee,  Office  of
 Market   Incentives,  NRM-21,  National  Highway  Traffice  Safety
 Administration, Washington,  D.C.,  October  23, 1989.

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