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208 minimum standard was 50% of the fleet. The original standard JOHN F. KENNEDY INTERNATIONAL AIRPORT-- specified CNG vehicles. A PUBLICPRIVATE PARTNERSHIP FOR HYDROGEN FUELED VEHICLES To overcome resistance to the mandate, the Port began to John F. Kennedy International Airport (JFK) is one of four provide incentives. One form of incentive was cash assistance commercial service airports operated by the Port Authority of for the purchase of CNG vehicles. For taxi operators, the Port New York and New Jersey (PANYNJ). JFK's hydrogen pro- provided an allowance of $3,000 per vehicle. For other vehi- gram is a partnership among the PANYNJ, the DOE, General cles, the allowance was larger. A second incentive directed to Motors (GM), and Shell Oil Company. The PANYNJ was taxi operators was provided in the form of improved access to originally approached by GM with an offer of hydrogen vehi- the airport. The Port's standard operating policies restrict an cles through its Project Driveway program. The vehicles were individual taxi to picking up passengers every other day. This initially provided for three months at no cost. Later, Shell policy was waived for CNG vehicles, enabling daily operations offered to construct a hydrogen fueling station. The DOE sup- at the airport. The vehicle allowance was funded with grants ported the program with a grant. The PANYNJ provided Shell from the BAAQMD and the State Energy Program. From 2002 with land for the station at a reduced rent. Shell constructed through 2006, the Port received a total of $312,000 to finance the station and operates and maintains it. Shell provides the the cash incentive program. The Port applied for the grants on hydrogen fuel at no cost. behalf of the operators and disbursed the grant funds once received. The project supports research into hydrogen fuel cell tech- nology. For example, Toyota provided JFK with 10 hydrogen With the elimination of factory original manufactured CNG fuel cell hybrid vehicles. The project also supports market test- passenger vehicles suitable for taxis, the Port of Oakland has ing of hydrogen vehicles by the public (see Figures 6 and 7). temporarily reduced the fleet percentage requirement to 25% Two pictures of the fueling station appear here. and allows taxi operators to use hybrid electric vehicles to meet the requirement. NEWARK LIBERTY INTERNATIONAL AIRPORT-- The Port has not offered cash assistance since 2006 because PUBLIC UTILITY SUPPORT FOR ENERGY the administrative burden became too great. Instead, the sub- EFFICIENCY sidies are provided directly by Clean Energy, which owns and operates a CNG refueling station on airport property. Newark Liberty International Airport (EWR) is another com- mercial service airport operated by the PANYNJ. EWR took advantage of a program offered by the Public Service Gas DALLAS/FORT WORTH INTERNATIONAL and Electric Company (PSE&G) to reduce energy consump- AIRPORT--A SUCCESSFUL PUBLICPRIVATE tion at little cost to the airport. EWR relied on PSE&G's PARTNERSHIP FOR ALTERNATIVE FUEL Direct Install Program to install three chillers with variable VEHICLE REFUELING speed drives and to replace lighting with more efficient fix- tures. PSE&G performed the installation and paid for 100% The Dallas/Fort Worth International Airport (DFW) took a dif- of the equipment and installation costs. EWR is obligated to ferent approach to financing the construction of a CNG refuel- pay back only 20% of these costs through the airport's regu- ing station for its airport. DFW issued an RFP for a commercial lar utility bill. Thus, PSE&G is paying for 80% of the cost of operator to build and operate the station. The RFP required proposers to offer a standard index rate plus a fixed markup for sales to DFW. The station was needed to service DFW's fleet of CNG vehicles, but the RFP permitted sales to the general public as well. The winning operator, Clean Energy, Inc., funded 100% of the construction costs of the station and agreed to a fixed markup on the sale of CNG to the airport. (CNG's fixed rate offer was determined to be most advantageous to the airport.) The general public pays the prevailing unit rate for CNG. Clean Energy recoups its cost and generates its profit from the fixed markup and retail sales to the public. Clean Energy owns the refueling station. Therefore, the station was ineligible for VALE and other federal grant pro- grams. Even without government assistance, however, DFW gets the benefit of a refueling station on-airport at no out-of- pocket cost and reduced rates on the purchase of CNG. Clean Energy, in turn, gets the benefit of sales to the airport and the general public through its investment in the station. FIGURE 6 JFK hydrogen fueling station (detail).