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ALTERNATIVEFUELS ALTERNATIVEFUELS

Current IFTA Alternative Fuels • • • Gasohol Ethanol Methanol Propane (LPG) Compressed Natural Current IFTA Alternative Fuels • • • Gasohol Ethanol Methanol Propane (LPG) Compressed Natural Gas (CNG) Liquid Natural Gas (LNG) A-55 E-85 M-85

E-85 • ETHONAL • GASOLINE E-85 • ETHONAL • GASOLINE

M-85 • METHONAL • GASOLINE M-85 • METHONAL • GASOLINE

A-55 • Naptha • Water • Blending Agent A-55 • Naptha • Water • Blending Agent

By Lubrizol Corporation By Lubrizol Corporation

EMULSIFIED DIESEL FUEL + WATER + DIESEL = PURINOX EMULSIFIER EMULSIFIED DIESEL FUEL + WATER + DIESEL = PURINOX EMULSIFIER

BIO-DIESEL CORN OIL VEGETABL E OIL GREAS E Mixed with lye to separate the BIO-DIESEL CORN OIL VEGETABL E OIL GREAS E Mixed with lye to separate the esters

LIQUID NATURAL GAS • Lower cost to install fueling facilities • LNG fuel tank LIQUID NATURAL GAS • Lower cost to install fueling facilities • LNG fuel tank interchangeable with diesel fuel tank • Higher cost per gallon • LNG fuel tank and fuel is heavier

LNG TANK INSTALLED LNG TANK INSTALLED

COMPRESSED NATURAL GAS • Lower cost per gallon • Lighter fuel tanks and fuel COMPRESSED NATURAL GAS • Lower cost per gallon • Lighter fuel tanks and fuel • Cost of installing fueling facilities double that of an LNG facility • Fuel tanks are bulky and must be protected, usually placed behind the cab of the truck

CNG TANKS ON VEHICLE ^ CNG Tanks CNG TANKS ON VEHICLE ^ CNG Tanks

VEHICLES VEHICLES

VEHICLE TYPES • DUAL FUEL VEHICLES • BI-FUEL VEHICLES • HYBRID VEHICLES VEHICLE TYPES • DUAL FUEL VEHICLES • BI-FUEL VEHICLES • HYBRID VEHICLES

DEFINITION • DUAL FUEL • BI-FUEL • HYBRID Vehicles that Vehicles can operate on DEFINITION • DUAL FUEL • BI-FUEL • HYBRID Vehicles that Vehicles can operate on two that operate on two fuels simultaneously individually simultaneously • GENERALLY or individually Diesel and Gasoline • GENERALLY CNG or LNG and LPG Gasoline and E-85 or M 85

FUELS USED • Diesel Fuel Primary fuel used to operate the engine • LNG FUELS USED • Diesel Fuel Primary fuel used to operate the engine • LNG or CNG Secondary fuels introduced to reduce emissions. It can only be used in combination with diesel fuel

DIESEL MANIFOLD DUAL FUEL MANIFOLD DIESEL MANIFOLD DUAL FUEL MANIFOLD

FUEL SYSTEM • Starts and idles on diesel • 160 degrees looks for alternative FUEL SYSTEM • Starts and idles on diesel • 160 degrees looks for alternative fuel. • If alternative fuel is available the system begins injecting CNG or LNG

PERCENTAGE OF FUEL START & IDLE 100% DIESEL AVERAGES 20 % DIESEL 80 % PERCENTAGE OF FUEL START & IDLE 100% DIESEL AVERAGES 20 % DIESEL 80 % CNG OR LNG PEAK 6% DIESEL 94% CNG OR LNG

CUSTOMER BASE • Government entities • Private companies with government contracts • Private Companies CUSTOMER BASE • Government entities • Private companies with government contracts • Private Companies interested in alternative fuel sources

INTRASTATE CARRIERS Diesel Fuel Tax paid when fuel is purchased LNG & CNG Tax INTRASTATE CARRIERS Diesel Fuel Tax paid when fuel is purchased LNG & CNG Tax paid by carrier directly to the Board on a return or by purchasing Flat Rate Stickers

DUAL FUEL & PTO Vehicles A customer base for dual fuel vehicles are waste DUAL FUEL & PTO Vehicles A customer base for dual fuel vehicles are waste disposal companies. These vehicles operate PTO’s and claim refunds with the BOE How do they claim refunds ?

INTERSTATE CARRIERS • Diesel Tax paid at the pump in California • LNG or INTERSTATE CARRIERS • Diesel Tax paid at the pump in California • LNG or CNG Tax paid to the BOE Cannot use California Flat Rate Sticker • Tax Reporting Join IFTA or buy fuel trip permits

EXAMPLE OF DIESEL AND DUAL FUEL IFTA FLEET • 10 Diesel vehicles • Travel EXAMPLE OF DIESEL AND DUAL FUEL IFTA FLEET • 10 Diesel vehicles • Travel 100, 000 miles a quarter between CA& NV • 40% of those miles are in Nevada • All fuel is purchased in California • 10 Dual fuel vehicles • Travel 100, 000 miles a quarter between CA& NV • 10% of those miles are in Nevada • All fuel is purchased in California How do they report?

COMBINED DIESEL SCHEDULE COMBINED DIESEL SCHEDULE

DUAL FUEL CNG SCHEDULE DUAL FUEL CNG SCHEDULE

SPLIT FLEET REPORTING • Carrier must file two IFTA Reports • The IFTA account SPLIT FLEET REPORTING • Carrier must file two IFTA Reports • The IFTA account number is coded to identify the dual fuel fleet • Report an accurate fleet MPG

DIESEL FLEET SCHEDULE DIESEL FLEET SCHEDULE

DUAL FUEL DIESEL SCHEDULE DUAL FUEL DIESEL SCHEDULE

DUAL FUEL CNG SCHEDULE DUAL FUEL CNG SCHEDULE

CHALLENGES OF ALTERNATIVE FUELS • Accounting for each new fuel type • Standardized measurement CHALLENGES OF ALTERNATIVE FUELS • Accounting for each new fuel type • Standardized measurement of the fuel (Therm vs. PSI) • Tax on new fuel types • Combination of fuels being used

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