Assessing Opportunities for Alternative Fuel Distribution Programs (2013) / Chapter Skim
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38 The objective of this section is to help airports identify the costs, benefits, and other key considerations associated with alternative fuel distribution programs. The workbook spreadsheet has templates to help with this evaluation.
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evaluation Framework Step B 39 5.1 Environmental and Economic Considerations The evaluation of environmental and economic considerations associated with alternative fuels and their distribution are discussed in this section. The following categories are included: • Environmental considerations – Potential change in PM and NOx emissions – Potential change in life-cycle GHG emissions • Economic considerations – Relative cost of fuel – Relative cost of vehicle/plant – Relative cost to upgrade existing vehicle/plant – Additional infrastructure storage cost – Additional facilities cost (e.g., refueling station)
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40 Assessing opportunities for Alternative Fuel Distribution Programs aromatic content. SOx and hydrocarbon aromatics are precursors and indicators of the formation of PM2.5.
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evaluation Framework Step B 41 5.1.1.4 Relative Cost of Vehicle/Plant As discussed in Section 2.1, alternative jet fuels are drop-in fuels and, therefore, no changes to the transportation, storage, and distribution infrastructure or aircraft is required. 5.1.1.5 Relative Cost to Upgrade Existing Vehicle/Plant Minimal because alternative jet fuel is drop-in.
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42 Assessing opportunities for Alternative Fuel Distribution Programs 5.1.2.7 Additional Facilities Cost (e.g., Refueling Station) The similarity of green diesel to petroleum-derived diesel, as discussed in previous sections, means that no additional facilities are required.
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evaluation Framework Step B 43 5.1.4 Ethanol 5.1.4.1 Relative Change in PM, NOx and GHG Emissions Most research has shown that for ethanol blends up to 25% (E25) , there is a meaningful reduction in PM relative to gasoline.
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44 Assessing opportunities for Alternative Fuel Distribution Programs 5.1.5 CNG 5.1.5.1 Relative Change in PM and NOx Emissions If CNG is used to replace diesel in appropriate vehicles, there would be reductions in NOx and PM emissions. If CNG is used to replace gasoline, then there is likely to be a moderate reduction in PM.
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evaluation Framework Step B 45 5.1.6.2 Relative Change in Life-Cycle GHG Emissions There is the potential for GHG emissions reductions on a life-cycle basis, but this is subject to assumptions regarding extraction, processing, and transportation. 5.1.6.3 Relative Cost of Fuel A gallon of LPG has around 75% of the energy of a gallon of gasoline, so price per gallon must be lower in order for the fuel to be economically competitive.
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46 Assessing opportunities for Alternative Fuel Distribution Programs (EIA 2011a)
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evaluation Framework Step B 47 tanks for E85) , while others require either dedicated vehicles and/or infrastructure (e.g., E85, CNG, LPG, electricity)
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48 Assessing opportunities for Alternative Fuel Distribution Programs – LPG – Biodiesel (B20) – Ethanol (E85)
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evaluation Framework Step B 49 • Which stakeholders have the greatest interest in the program, and does that interest translate into their willingness to take a greater share of the risk? • Which of the seven risks (technology, management, financial, policy, feedstock, engineering, and construction)
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50 Assessing opportunities for Alternative Fuel Distribution Programs loan guarantees can be used to support private sector loans and are intended to make obtaining financing easier by reducing the risks a banker would have to assume. The Bioenergy Program for Advanced Biofuels in Section 9005 of the 2008 Farm Bill gives the Secretary of Agriculture broad discretion to create a program to provide production payments to eligible advanced biofuel producers "to support and ensure an expanding production of advanced biofuels" (USDA 2011)
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evaluation Framework Step B 51 grams introduced in 2005 (in the American Jobs Creation Act of 2004 and Energy Policy Act of 2005; apart from the Small Ethanol Producer Credit, which was introduced in 1990 in the Omnibus Budget Reconciliation Act of 1990) provided as much as $1.00 per gallon tax credits for road transportation fuels.
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52 Assessing opportunities for Alternative Fuel Distribution Programs 5.3.4 Clean Cities Clean Cities is a government-industry partnership sponsored by the DOE to promote means to reduce the use of petroleum-derived fuels in the transportation sector (DOE 2012a)
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evaluation Framework Step B 53 The DOE's Alternative Fuels Data Center (AFDC; http://www.afdc.energy.gov/afdc/) is an excellent resource for identifying and tracking federal and state incentives and laws that apply to alternative fuels and vehicles.
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54 Assessing opportunities for Alternative Fuel Distribution Programs • Third-party concession operators • Airports • End users • Vehicle and equipment manufacturers • Unions • Government entities – Municipalities – Metropolitan Planning Organizations – Counties – States – Federal government • Funding sources – Public – Private • Non-governmental organizations • Community groups Alternative fuel distribution programs need active stakeholders' support. Stakeholders have different motivations and needs for participating in an alternative fuel program.
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evaluation Framework Step B 55 • Unions – Motivations: support of environmental targets and job diversification and specialization. – Needs: conviction that high-paying jobs will be preserved or added and quality of work life and benefits will stay high.
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56 Assessing opportunities for Alternative Fuel Distribution Programs 5.5.2.3 Organizational Challenges of Institutions That Can Be Large and Conservative Most airports are conservative institutions whose core business is safely transporting people. Airport executives of both public and privately owned airports must respond to, and balance, the needs of many constituents that include political figures, community activists, and customers.
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evaluation Framework Step B 57 5.5.3 Community Acceptance Alternative fuel distribution programs can provide many benefits to the airport and surrounding communities; however, some programs may create concerns. A recommended course of action is to acknowledge these concerns and to provide sufficient information to the community to discuss them.
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58 Assessing opportunities for Alternative Fuel Distribution Programs At the same time, the limited availability of information to perform such evaluations must be recognized. In a 2011 paper, the World Policy Institute and EBG Capital note that non-politicized, peer-reviewed, current data are scarce and call for future researchers to systematically explore data weaknesses including in areas such as non-irrigated and second- and third-generation biofuels, the range of alternative feedstocks, and emerging technologies (Glassman et al.
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evaluation Framework Step B 59 of hydraulic fracturing per BTU is unresolved, and its pollution impact is a particularly heated area of public debate. For hydrocarbons, water impact is largely driven by extraction.
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60 Assessing opportunities for Alternative Fuel Distribution Programs Electricity. As cited by the DOE (2006)
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