Assessing Opportunities for Alternative Fuel Distribution Programs (2013)

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A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP REPORT 83 TRANSPORTAT ION RESEARCH BOARD WASHINGTON, D.C. 2013 www.TRB.org Research sponsored by the Federal Aviation Administration Subscriber Categories Aviation  •  Energy  •  Environment Assessing Opportunities for Alternative Fuel Distribution Programs Bruno Miller, Donovan Johnson, Philip Jones, Terry Thompson, Michael Johnson, Meghan Hunt Metron AviAtion Dulles, VA Donald Schenk, Judith Driver, Gerald Biscardi, Jack Lavin, David Plavin ACA AssoCiAtes New York, NY Ryk Dunkelberg, Cody Fussell, Peter Van Pelt MeAd & Hunt, inC. Tulsa, OK Diana Glassman integrAtion strAtegy, inC. New York, NY Hazel Peace riCArdo-AeA Warrington, Cheshire, UK John Norris riCArdo-AeA Harwell, Oxfordshire, UK Damon Fordham PPC McLean, VA Richard Altman rCB AltMAn AssoCiAtes, llC Wethersfield, CT

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in trans­ portation of people and goods and in regional, national, and inter­ national commerce. They are where the nation’s aviation system connects with other modes of transportation and where federal respon­ sibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Coopera­ tive Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near­term solutions to meet demands placed on it. 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ACRP REPORT 83 Project 02­36 ISSN 1935­9802 ISBN 978­0­309­25896­8 Library of Congress Control Number 2013933502 © 2013 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not­for­profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not­for­profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program, conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. The members of the technical panel selected to monitor this project and to review this report were chosen for their special competencies and with regard for appropriate balance. The report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the Governing Board of the National Research Council. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board, the National Research Council, or the program sponsors. The Transportation Research Board of the National Academies, the National Research Council, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national­academies.org/trb/bookstore Printed in the United States of America

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C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP REPORT 83 Christopher W. Jenks, Director, Cooperative Research Programs Crawford F. Jencks, Deputy Director, Cooperative Research Programs Michael R. Salamone, ACRP Manager Theresia H. Schatz, Senior Program Officer Terri Baker, Senior Program Assistant Eileen P. Delaney, Director of Publications Natalie Barnes, Senior Editor ACRP PROJECT 02-36 PANEL Field of Environment Tomas Rivera, Dallas/Fort Worth International Airport, DFW Airport, TX (Chair) Paul J. Christner, Massachusetts Port Authority, East Boston, MA William F. Flannery, Des Moines International Airport, Des Moines, IA (Retired) Robert Graff, Delaware Valley Regional Planning Commission, Philadelphia, PA Nate Sargent, ITW GSE Group, Bradford, OH Adam Walters, Southwest Airlines Co., Dallas, TX Nathan Brown, FAA Liaison Chris Hugunin, FAA Liaison Tim A. Pohle, Airlines for America Liaison Katherine B. Preston, Airports Council International–North America Liaison Christine Gerencher, TRB Liaison

ACRP Report 83: Assessing Opportunities for Alternative Fuel Distribution Programs pro­ vides a guidebook and toolkit for airports to introduce and market alternative fuels to their airport community that includes tenants and consumers off airport. Alternative fuels con­ sidered include alternative jet fuel, green diesel, biodiesel, ethanol, compressed natural gas (CNG), liquefied petroleum gas (LPG), and electricity. The guidebook identifies a variety of economic, environmental, and policy issues that need to be addressed to help make alterna­ tive fuel programs a success. This guidebook includes a step­by­step process to evaluate opportunities and constraints for alternative fuel distribution programs. The toolkit on the accompanying CD­ROM consists of two spreadsheets that help airport decision makers evaluate alternative fuels marketing and distribution programs. Increasingly, airports and their tenants are examining the potential to introduce alterna­ tive fuels, including alternative jet fuel, at their facilities. Airports, however, may lack the information and analytical tools to evaluate the business case for implementing alternative fuel distribution programs. Many projects are under consideration around the country for production of alternative jet fuels. For example, there is an ongoing effort to bring alternative jet fuel production and distribution to the northwest region. The production of alternative jet fuel results in a variety of co­products such as green diesel, which raises an additional desire to find markets for these co­products. Given the concentrated demand for fuel products at or near airports, airports may have the potential to become distribution centers for the co­products of alternative jet fuel production as well as other alternative fuels. Optimizing the potential for alternative fuel use from a broad business view can offer airports a new sustainable business and environmental opportunity, can promote aviation growth, and can create jobs at airports and in the region. This research was conducted under ACRP Project 02­36 by Metron Aviation in associa­ tion with ACA Associates; Barnard Dunkelberg Corp. (now part of Mead & Hunt, Inc.); Integration Strategy, Inc.; Ricardo­AEA; PPC; and RCB Altman Associates, LLC. ACRP Report 83 expands the foundation provided in ACRP Report 60: Guidelines for Integrating Alternative Jet Fuel into the Airport Setting to cover other alternative fuels in addition to alternative jet fuel. A separate final report, which provides background to the research conducted in support of this guidebook, has been posted on the ACRP Project 02­36 web page at http://apps.trb. org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=3036. F O R E W O R D By Theresia H. Schatz Staff Officer Transportation Research Board

xi  Purpose of This Guidebook xiii  How to Use This Guidebook 1 Section 1 Introduction 1 1.1 What Are Alternative Fuels? 2 1.2 What Is Driving the Interest in Alternative Fuels? 3 1.3 Why Are Airports Interested in Alternative Fuels? 3 1.4 What Roles Do Airports Already Play in Fuel Distribution? 4 1.5 What Roles Can Airports Play in Alternative Fuel Programs? 4 1.6 Limitations of This Guidebook 4 1.7 Resources for Further Information 6 Section 2  What Are the Main Characteristics  of Alternative Fuels? 6 2.1 Alternative Jet Fuels 7 2.1.1 Fischer­Tropsch Process 9 2.1.2 Hydroprocessed Esters and Fatty Acids Process 11 2.2 Alternative Jet Fuels in Development 11 2.2.1 Alcohols to Jet 13 2.2.2 Fermentation Renewable Jet 14 2.2.3 Pyrolysis Renewable Jet 15 2.3 Aviation Gasoline 15 2.4 Alternative Fuels for Surface Applications 15 2.4.1 Green Diesel 17 2.4.2 Biodiesel 19 2.4.3 Ethanol 21 2.4.4 Compressed Natural Gas 23 2.4.5 Liquefied Petroleum Gas 24 2.4.6 Electricity 26 2.5 Potential User Groups and Their Motivations 26 2.5.1 Potential Users of Alternative Jet Fuel 26 2.5.2 Potential Users of Other Alternative Fuels 28 2.6 Current Status of Fueling Infrastructure for Alternative Fuels in the United States 31 Section 3 How Can Alternative Fuel Distribution Programs  at Airports Be Evaluated? 31 3.1 Introduction to the Evaluation Framework 32 3.2 Introduction to the Toolkit and User Guide 33 Section 4  Evaluation Framework Step A:  How Can Distribution Options Be Defined? 33 4.1 Step A1: Identification of Energy Mix at Airports 35 4.2 Step A2: Energy Demand Forecast C O N T E N T S

35 4.3 Step A3: Storage and Distribution Infrastructure 35 4.3.1 Storage Infrastructure 37 4.3.2 Distribution of Alternative Fuels 38 Section 5  Evaluation Framework Step B: What Are the Key  Considerations for Evaluating Distribution Options? 39 5.1 Environmental and Economic Considerations 39 5.1.1 Alternative Jet Fuel 41 5.1.2 Green Diesel 42 5.1.3 Biodiesel 43 5.1.4 Ethanol 44 5.1.5 CNG 44 5.1.6 LPG 45 5.1.7 Electricity 46 5.1.8 General Observations 47 5.1.9 Life­Cycle Evaluation 47 5.2 Social and Community Benefits 47 5.3 Financial and Commercial Considerations 48 5.3.1 Financial Considerations for Attracting Financing 49 5.3.2 Public Financial Support for Alternative Fuel Programs 51 5.3.3 Funding Overview of the Airport Improvement Program 52 5.3.4 Clean Cities 52 5.4 Legal and Regulatory Considerations 52 5.4.1 FAA and Associated Airport Regulations 52 5.4.2 Regulatory and Policy Framework on Alternative Jet Fuels 52 5.4.3 Regulatory and Policy Framework on Other Alternative Fuels 53 5.5 Stakeholder Engagement and Community Acceptance 53 5.5.1 Stakeholder Engagement 55 5.5.2 Addressing Particular Concerns of Airport Leadership 57 5.5.3 Community Acceptance 61 Section 6  Evaluation Framework Step C:  What Are the Main Siting Considerations  for Alternative Fuel Distribution Programs? 61 6.1 Introduction to Siting Considerations 62 6.2 Steps for Siting Alternative Fuels 62 6.2.1 Step 1: Inventory Airport Fuel Storage Facilities/Distribution Systems 65 6.2.2 Step 2: Identify Fuel Storage and Distribution System Requirements (Existing/Future) 67 6.2.3 Step 3: Identify Alternative Fuel Storage and Distribution Goals 69 6.2.4 Step 4: Identify Preliminary Alternative Fuel Storage Facility Development Sites 70 6.2.5 Step 5: Screen Sites and Prepare Preliminary Fuel Storage Facility Site Plans 71 6.2.6 Step 6: Select One of the Recommended Fuel Storage Facility Site Plans 71 6.2.7 Step 7: Construct Alternative Fuel Storage Facility 71 6.3 Environmental Reviews and Permitting 72 6.3.1 Environmental Review 72 6.3.2 Environmental Permitting

72 6.3.3 Land Use and Zoning in the Vicinity of Airports 74 6.3.4 Additional Notes on Permitting 75 Section 7  Representative Case Studies 75 7.1 Analysis of Energy Demand from a Subset of Users 75 7.1.1 Overview of Charleston International Airport 76 7.1.2 Case Study Objective 76 7.1.3 Current Energy Use for Selected Users 78 7.1.4 Baseline 2015 Projected Energy Consumption for Selected Users 78 7.1.5 Scenario 1: Projected Energy Use with a Moderate Switch to Alternative Fuels 83 7.1.6 Scenario 2: Projected Energy Use with an Aggressive Switch to Alternative Fuels 83 7.1.7 Summary of Results 86 7.1.8 Conclusion 86 7.2 Comprehensive Analysis of Energy Demand 86 7.2.1 Overview of Seattle­Tacoma International Airport 87 7.2.2 Case Study Objective 87 7.2.3 Research Approach 87 7.2.4 Results and Discussion 88 7.2.5 Conclusions 88 7.3 Support of Business Plan for Alternative Fuel Use and Production 88 7.3.1 Overview of Hartsfield­Jackson Atlanta International Airport 89 7.3.2 Case Study Objective 89 7.3.3 Information­Gathering Approach 90 7.3.4 Conclusion 90 7.4 Review of Siting Considerations 90 7.4.1 Overview of Tulsa International Airport 91 7.4.2 Case Study Objective 91 7.4.3 Approach 97 7.4.4 Conclusion 98 Section 8 Suggested Next Steps 99 Section 9 Frequently Asked Questions 99 9.1 Potential Community Concerns around Alternative Fuel 100 9.2 Potential Concerns Regarding Production of Alternative Fuel 102 9.3 Potential Concerns around the Storage, Handling, and Use of Alternative Jet Fuel 103 9.4 Potential Community Concerns around Alternative Surface Fuels 104  Glossary 107  Acronyms 109  Bibliography 114  Appendixes Note: Many of the photographs, figures, and tables in this report have been converted from color to grayscale for printing. The electronic version of the report (posted on the Web at www.trb.org) retains the color versions.

Alternative fuels have the potential to provide significant economic and environmental benefits to airports and their communities. These fuels can lead to improvements in local air quality emissions and reductions in life­cycle greenhouse gases. In addition, alternative fuels offer the possibility to diversify away from imported conventional petroleum­derived fuels and enhance energy security. Furthermore, alternative fuel distribution programs offer airports additional business opportunities to generate revenue through the operation of such facilities or leasing of land to third­party operators. Airports are natural nodes for multi­modal demand and are ideally situated to become distribution centers for a variety of alternative fuels for aircraft and surface transporta­ tion. Producers and marketers of alternative fuels can take advantage of this concentrated demand to strengthen their business case as they can cater to a wide spectrum of potential clients, including airlines, airports, and third­party operators such as rental car facilities, courtesy shuttles, taxis, buses, freight trucks, and other fleets that may operate nearby. This is especially the case for facilities that produce alternative jet fuel because, in addition to jet fuel, they also produce co­products such as green diesel, which can be used by some pas­ senger and most cargo vehicles. This guidebook and associated toolkit provide airport management with planning and evaluation tools for assessing commercial opportunities involving the distribution of alter­ native fuels. The alternative fuels considered here include alternative jet fuel, green diesel, biodiesel, ethanol, compressed natural gas, liquefied petroleum gas, and electricity. This guidebook identifies economic, environmental, and policy issues that need to be addressed to make alternative fuels a success. It is designed to remain relevant in spite of the antici­ pated changes in the economics and technology of alternative fuels. Thus, the content is focused on the critical issues that need to be considered to arrive at a comprehensive picture of an airport­based alternative fuel distribution program. While the guidebook is targeted primarily at airport leadership and their staff, it is also helpful to other parties, such as users and producers of alternative fuels. Lastly, this guidebook provides airports with a framework for identifying factors that are unique to their situation and provides toolkits for evaluating business opportunities and metrics to support quantitative assessments of the benefits and costs of becoming involved in an alternative fuel distribution program. The guidebook and toolkit provide information and resources to allow readers to reach their own conclusions about deploying distribution infrastructure according to what is most appropriate to their local circumstances. This guidebook is a continuation of the work presented in ACRP Report 60: Guidelines for Integrating Alternative Jet Fuel into the Airport Setting. This guidebook expands the founda­ tion laid out in ACRP Report 60 to cover other alternative fuels in addition to alternative jet fuel. Purpose of This Guidebook

This guidebook and associated materials are intended to be used by a wide audience with varying degrees of familiarity with alternative fuels. Therefore, depending on the reader’s level of expertise with alternative fuels, different sections will be more or less relevant. For readers not familiar with alternative fuels, Sections 1 and 2 are a good starting point. Section 1 presents the motivation for using alternative fuels and the role that airports can play in their deployment. Section 2 discusses the main characteristics of alternative fuels, including environmental characteristics, infrastructure requirements, and user profiles. Sections 3 through 8 are intended for readers comfortable with alternative fuels. In Sec­ tion 3, a framework for evaluating alternative fuel distribution programs is introduced. This framework is explained in detail in Sections 4, 5, and 6. In Section 7, four representative case studies that illustrate a number of analyses and questions that can be addressed with this guidebook and associated toolkit are presented. Section 8 briefly discusses suggested next steps; Section 9 answers some frequently asked questions. The printed guidebook ends with some supporting material: a glossary, acronym list, and bibliography. The toolkit associated with this guidebook consists of two separate spreadsheets that help the reader implement the elements of the evaluation framework introduced in Section 3. The spreadsheets can be found on the accompanying CD­ROM or downloaded from the TRB website (http://www.trb.org; search for Toolkit for Alternative Fuel Distribution Programs). The following appendixes to the guidebook are also on the CD­ROM: the User Guide for the toolkit, a detailed explanation of the forecasting methodology developed here, and more information on environmental characteristics of alternative fuels and environmental permitting guidelines. How to Use This Guidebook