NYCLHVCC CNG Roundtable

1. NYCLHVCC CNG Roundtable CNG Overview By Ronald J. Gulmi, Managing Director February 22, 2012

2. Emerald Alternative Energy Solutions, Inc. • Mission: • Direct alternate energy programs as a fiduciary of the organization seeking to save money and/or enhance revenues • To provide fleets with petroleum reduction strategies and solutions that will improve their bottom line, the nation’s energy security, the global environment and provide enhanced community relations • Dedicated to continually expanding customer base as new opportunities emerge

3. Market Growth Possibilities: NGVs The Roller Coaster Ride:

4. Market Growth Possibilities: NGVs Riding the “Crest of the Wave”:

5. Market Growth Possibilities: NGVs The Future is Bright:

6. Market Growth Possibilities: NGVs The Stars Are All Aligned:

7. Why the Stars Are All Aligned - Benefits • Economic • Price stability and cost less • Incentives & funding • Environment - Cleaner Air • Reduction in Carbon and GHG – go “Green” • Reduction is DPM, NOx, SOx and other pollutants • Improved Work Environment for Employees • Energy Security Improved - North American fuel reduces America’s dependence on Foreign Oil • Reduction in Noise – engines are quieter • Renewable Forms – Bio Methane • Waste Water Treatment, Landfill Gas, Anaerobic Digestion • Increased Vehicle/Equipment Product Availability • Increases in Supply – Marcellus Shale: NY, PA, OH, WV

8. Why the Stars Are All Aligned - Benefits • The Natural Gas Industry Has Reengaged NGVs • Northeast Gas Association – reestablished the NGV Working Group • Gas Exploration and Production Companies “Gas Producers” formed American Natural Gas Alliance (ANGA) • American Gas Association (AGA) – LDCs reengaging NGV Market • Joint AGA/ANGA Transportation Collaborative – Drive Natural Gas Initiative • Legislative Advocacy • Infrastructure Development/Business Modeling • Fleet Conversions/OEM Outreach • Marketing and Education

9. Why the Stars Are All Aligned - Benefits • The Natural Gas Industry Has Reengaged NGVs (continued) • ANGA Joins Natural Gas Vehicle of America (NGVA) – 29 companies; 10 new Board Members • Apache Corp., Southwestern Energy, EnCana, Newfield Exploration, The Williams Companies, Bill Barrett Corp., Pioneer Energy Resources, Laredo Petroleum, Chesapeake • NGVA Hires new Marketing/Communications Resource

10. Industry Market Trends • Gas Supply has increased and is abundant • Renewable Forms of Natural Gas playing greater role • CNG Fuel Station Infrastructure is Growing • More Vehicle Product offerings – OEMs, QVMs & SVMs • More certified, qualified upfitters (again) • We have increased CNG station infrastructure developers • We need the federal NAT GAS Act • We need low cost-reliable home fuel appliances • We need pipeline infrastructure – transmission and distribution • We need more CNG fuel station infrastructure • We need more CNG cars and light duty

11. Local Market Trends • The number of CNG fleets in NYC/LHV is Growing • Some fleets have decreased in size – National Grid, Con Ed • We have certified, qualified upfitters again – CVS, Dejana • We have increased CNG station infrastructure developers • NYC Private Fleet CMAQ Funding Coming Spring 2012 • We need the federal NAT GAS Act • We need New York State AFV Incentives Reintroduced • We need low cost-reliable home fuel appliances • We need pipeline infrastructure – transmission and distribution • We need more CNG fuel station infrastructure • We need more CNG cars and light duty

12. Local Market Trends – ARRA CNG Projects • Verizon – 165 Vans • Westchester Ambulette – 18 Ambulette Vans • City of White Plains – 1 Street Sweeper, 1 Refuse Truck, 2 Dump Trucks, 4 Delivery Trucks • Demon Trucking (Phoenix Beverage) – 2 Delivery Trucks

13. Local Market Trends – Current Fuel Pricing • Con Ed Stations - $2.55/GGE • NGrid Stations (Operated by Clean Energy) - $2.679/GGE • All Clean Energy Stations (LaGuardia, Valhalla, New Paltz, Poughkeepsie, Albany) - $2.679/GGE • Stable and consistent pricing well below petroleum! • Note: Pricing includes a NYS Alternative Fuel Tax Exemption due to expire on September 1, 2012. Exemption is approximately $.44 per GGE comprised of the following: $.08/GGE in Motor Fuels Tax, $.16/GGE in Petroleum Bus Tax (PBT), $.20/GGE in NYS and Local Sales Tax.

14. New York City - Lower Hudson Valley Region 31 Total CNG Stations • Public Access – 15 Stations • 5 National Grid Stations: JFK Airport, Canarsie, Greenpoint, Staten Island, Albany • 5 Con Ed: Rye, Bronx, 2 - Manhattan, College Point • 5 Clean Energy: LaGuardia Airport, NYSDOT – Valhalla, NYSOGS – New Paltz, NYSOGS – Poughkeepsie, NYSOGS – McCarty Ave. Albany • EERE Alternative Fuels Data Center – AFV Station Locator: • http://www.afdc.energy.gov/afdc/locator/stations/

15. New York City Lower Hudson Valley Region 31 CNG Stations • Private Access/Government – 16 Stations • 2 MTA NYCT: West Farms/Coliseum Depot(Bx) & Jackie Gleason Depot(Bklyn) • 2 MTA Bus Co.: College Point(Qns) & Spring Creek(Bklyn) • Bronx Zoo • 2 Manhattan Beer: Bronx and Brooklyn • NY City Parks & Recreation Olmstead - Flushing Meadows/Corona Park(Qns) • NY City Parks & Recreation – Central Park(Mhtn) • NY City Dept. of Sanitation – Woodside(Qns) • City of White Plains Public Works – White Plains • 5 NYSDOT: Newburgh, Middletown, Poughkeepsie, Kingston, Hudson

16. CNG Fuel Displacement - Benefits • 2010 CNG Fuel Displacement for NYCLHVCC is: • 10,618,620 gallon equivalents • 14,987 Tons of CO2 Reduced! • Fleets (over 35 Fleets) • MTA NYCT – Jackie Gleason (Brklyn), West Farms (Bronx) • MTA Bus Co. – Spring Creek (Brklyn), College Point (Qns) • NYC Fleets: Parks & Recreation, DOT, DGS, DOS • NYS Fleets: DMV, DOT, OGS, OCFS, DEC, SI Disability Svcs, Workers Comp • Port Authority NY/NJ, Romeo Limo, MTC Limo, US Limo • LEROS Point to Point, SI Zoo, Bronx Zoo, The Treats Truck LLC • Manhattan Beer, Phoenix Beverage, Anheuser Busch

17. CNG Fuel Displacement - Benefits • Fleets (Continued) • UPS • Verizon • Westchester Ambulette • City of White Plains • National Grid, Consolidated Edison • Metropolitan Paper Recycling, Filco Carting • Ferrara Brothers • Brooklyn Developmental Center

18. Target Markets • Heavy-duty freight trucks: • Water ports and rail • “Less-than-Load” (e.g., Yellow-Roadway, Forward Air, Swift) • Transit buses/shuttle buses/school buses/ambulettes • Major metro, municipal and public works departments • Trash, recycling, cement and other vocational work trucks • Medium-duty delivery and commercial service trucks: • Telecom ─ food ─ beverage ─ snack food ─ newspapers • linen/laundry ─ grocery ─ furnishings/appliances ─ office products • Taxis and light-duty service vehicles

19. NGVs are a “Here and Now Technology” • For the foreseeable future, there is no one, silver-bullet, panacea technology or alternative fuel that is going to replace petroleum.

20. NGVs are a “Here and Now Technology” • For the foreseeable future, there is no one, silver-bullet, panacea technology or alternative fuel that is going to replace petroleum. • We have many options – natural gas, ethanol, methanol, propane, gasoline/diesel hybrids and plug-in hybrids and natural gas hybrids.

21. NGVs are a “Here and Now Technology” • For the foreseeable future, there is no one, silver-bullet, panacea technology or alternative fuel that is going to replace petroleum. • We have many options – natural gas, ethanol, methanol, propane, gasoline/diesel hybrids and plug-in hybrids and natural gas hybrids. • But we don’t have choices. We have to use all available technologies and fuels – and NGVs ARE AVAILABLE NOW.

23. Why the NGV Market Will Grow • We Have the Fuel – And It’s Ours • Substantial Air Quality: Urban Pollution • Substantial Air Quality: GHGs • Biomethane Makes GHG Case Stronger • Only Natural Gas Can Displace Diesel • NGVs are a Here-and-Now Technology • Government Policymakers are (Finally) Recognizing the Value of NGVs • Money

24. NGV Market Development: Teamwork andCollaboration – Important in the Approach • Gas Utility Engagement • Trade Allies • Infrastructure Developers, Station Operators, Maintainers • Dealerships, OEM Representatives, Upfitters (QVMs) • Fleet Consultants • Environmental Organizations • Industry Associations (AGA, ANGA, NGVA, DNGI) • US DOE Clean Cities Coalitions • NYSERDA • Customer Testimonial and Involvement • Site visits, test driving, hands on – encourage the customer to learn from others

25. Questions?