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Oklahoma's Multi-State Natural Gas Vehicle Initiative Overview - September 2012

This document outlines the Oklahoma Secretary of Energy's Multi-State Natural Gas Vehicle Initiative, led by C. Michael Ming, presented during the Oklahoma House of Representatives Interim Study on September 11, 2012. It discusses the bipartisan multistate coalition, interest in requests for information (RFI), vehicle statistics including fleet inventory and pricing, and insights into CNG infrastructure in Oklahoma. Key statistics address vehicle replacement schedules, pricing fluctuations based on market changes, and adherence to new CAFE standards promoting hybrid and alternative fuel vehicles.

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Oklahoma's Multi-State Natural Gas Vehicle Initiative Overview - September 2012

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  1. Office of the Oklahoma Secretary of Energy Multi-State NGV Initiative Overview C. Michael Ming Secretary of Energy State of Oklahoma Oklahoma House of Representatives Interim Study Oklahoma City, OK September 11, 2012

  2. The Bipartisan Multistate Coalition RFP States Very Interested MOU States Outreach Forums

  3. Timeline Colorado Oklahoma

  4. Requests For Information (RFI): Informing The Multistate Solicitation OEMs * Infrastructure Upfitters/Converters/QVMs Retail Sales Producers * Responding Late

  5. Developing A Practical Strategy Long-Term Vision Near-Term Success

  6. Oklahoma Vehicles Inventory • Key Statistics • FY-11 Total Inventory: • 11,092** • FY-11 Purchases: • ~751 • Average Price Purchase Price: • Overall: $33,644 • ½ ton Pickup s~ $26,000 • Sedans ~ $18,000 • Compact Sedans ~ $16,000 • More Than 80% of Vehicles Fall Within Proposed Bands Band 8 Band 1 Band 5 Bands 6/7 Band 2 * Excludes DPS, Higher Education, and most nonreporting agencies. ** Includes most higher education.

  7. Oklahoma Fleet Age • Key Statistics • Average Vehicle Replacement Schedule: • DPS/ODOT: 175,000 miles • FMD: 120,000 miles • Higher Education: 60,000 miles

  8. Oklahoma CNG Infrastructure Source: CNGnow.com, August 27, 2012

  9. Peering Into The Black Box: CNG Pricing Pump Price of $1.99/gge Pump Price of $2.45/gge Source: Chesapeake Energy Corporation, 2012

  10. Low Variable Costs Mitigate Price Volatility • If NYMEX is $4.00/mcf • CNG is 1.50/gge • If NYMEX is $8.00/mcf • CNG is 2.00/gge • If NYMEX is $12.00/mcf • CNG is 2.50/gge Source: Chesapeake Energy Corporation, 2012

  11. Additional Items: New CAFE Standards • Promoting A “Technology Neutral Approach” • CAFE standards influence manufacturer product planning • New standards for 2017-2025 model years finalized August 28, 2012 • PHEVs, NGVs receive same incentives under the final rule

  12. Office of the Oklahoma Secretary of Energy C. Michael Ming Email: michael.ming@doe.ok.gov Web: www.ok.gov/energy

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