Initiatives

Fleet operators could save money with natural gas vehicles

Press Release
November 12, 2015
Contact: Marty Niland, nilandm@c2es.org, 703-516-0600

Fleet operators could save money with natural gas vehicles

WASHINGTON – Public and private fleet operators could save money by switching to natural gas vehicles using the business model that energy service companies (ESCOs) apply to energy efficiency projects, according to a guide released today by the Center for Climate and Energy Solutions (C2ES).

Although switching to natural gas vehicles (NGVs) can lower costs, many fleet managers have not converted their fleets. Strategic Planning to Enable ESCOs to Accelerate NGV Fleet Deployment: A Guide for Businesses and Policymakers helps investors and state and local policymakers make decisions about deploying natural gas vehicles in public and private fleets, which are among the most initially promising areas.

The findings are part of a two-year initiative, in partnership with the National Association of State Energy Officials (NASEO) and with funding from the U.S. Department of Energy’s Clean Cities Program, to develop innovative finance mechanisms aimed at accelerating the deployment of alternative fuel vehicles and fueling infrastructure.

The guide analyzes the cost-saving potential for switching tractor-trailer truck, school bus, and light-duty vehicle fleets. Among the key findings:

  • Incorporating natural gas vehicles into fleets can significantly reduce petroleum use and harmful emissions, especially with tractor-trailer fleets.
  • The major factors affecting the financial performance of natural gas vehicle fleets are the fleet’s vehicle technology and vehicle usage patterns.
  • Natural gas vehicle projects for tractor-trailer fleets result in net cost savings under nearly every fleet size and travel scenario considered in the guide’s analysis.
  • Using natural gas to fuel school bus fleets also results in net cost savings for fleets whose vehicles travel about 20,000 miles per year.
  • An energy service provider can help with the transition to natural gas by familiarizing fleet managers with new technology, identifying a project’s greatest savings potential, reducing financial risk, and helping maximize financial payoff.

“Switching from diesel to natural gas is a net cost-saver for fleets in many cases. But even the most cost-conscious fleet manager can hesitate to switch to a new technology, especially in a time of low oil prices,” said Nick Nigro, a C2ES senior advisor and lead author of the report. “The fleet market can learn a lot from ESCOs and how they’ve deployed energy efficiency technologies by offering valuable services and training in exchange for a share of the cost savings.”

“Many of NASEO’s members, the 56 State and Territory Energy Offices, are eager for solutions and strategies supporting the use of domestic and clean transportation fuels,” added David Terry, Executive Director of NASEO. “The Strategic Planning Guide is an important addition to states’ toolboxes in their efforts to reduce reliance on imported oil, improve air quality, and stimulate economic growth.”

Read the report.

Learn more about the initiative.

About C2ES

The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address our climate and energy challenges. Learn more at www.c2es.org.

 

 

New business models plus public support can boost investment in EV charging

More than 300,000 electric vehicles (EVs) are already on the road in the United States, but to ramp up adoption of this technology, consumers will need more access to charging beyond their home or office.

C2ES has identified business models that, combined with near-term public support, could boost investment in publicly available EV charging and expand the environmental benefits of EVs.

The business models are detailed in a new C2ES publication, Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers. The guide draws on research from a two-year initiative in partnership with the National Association of State Energy Officials (NASEO) to explore innovative financing mechanisms aimed at accelerating the deployment of alternative fuel vehicles and fueling infrastructure.

This figure illustrates the business challenge facing charging service providers presently. Over the expected life of the charging equipment, the direct revenue for the provision of charging services is less than the cost of owning and operating the charging station.

Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers

Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers

November 2015

By Nick Nigro, Dan Welch and Janet Peace
 

Download the Report (PDF)

This guide answers questions that private investors and state and local agencies, such as state energy offices, may have in deciding whether and to what extent they should invest in publicly available charging infrastructure.

 

Dan Welch
Janet Peace
Nick Nigro
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There's growing business momentum for climate action

Can you feel the momentum?

With negotiators meeting in Bonn this week and only six weeks to go until Paris, the business community is not only stepping up to the plate, but is swinging for the fences on its support climate action (Yes, it’s playoff season, so baseball is also on my mind).

This week’s announcement that 69 companies have joined the White House’s American Business Act on Climate Pledge brings the total to 81. Many of these companies pledging to reduce their emissions, take other actions to tackle climate change and support a strong international agreement include a number of members of our own Business Environmental Leadership Council: Alcoa, Bank of America, GE, General Motors, HP, IBM, Intel and PG&E. Together the 81 companies represent a combined $3 trillion in revenue and 9 million employees.

And last week, 14 companies with a combined revenue of $1.1 trillion and 1.5 million employees signed a statement organized by C2ES in support of a Paris climate agreement, that began “Paris presents a critical opportunity to strengthen efforts globally addressing the causes and consequences of climate change, and to demonstrate action by businesses and other non-state actors. ”

But these companies aren’t just talking about climate change; they’re doing something about it. They’re making commitments to reduce their own emissions, and some are even committing to use 100% renewable energy through the RE100 campaign.  They are also working both internally and with communities and cities to increase climate resilience.

Now it’s time to take this enthusiasm and put it to work. We know there is growing support for a strong agreement in Paris, and hopefully that’s what we’ll get in December.  But that’s just the first step—we’ll need to ensure that countries live up to their commitments, and back here in the United States, we’ll be working with businesses, states, and cities to build partnerships that harness the power of the markets to reduce emissions, develop innovative financing for clean energy and strengthen our resilience to climate impacts.

We have some real momentum going now. Let’s make the most of it.

Cities are driving climate solutions

Cities and counties are increasingly emerging as climate leaders, becoming laboratories and incubators for climate solutions. These solutions take a fresh approach to emerging local challenges, and could drive progress at a larger scale.

Here are two key ways cities are stepping up:

·      Local governments are creating an invaluable knowledge base for efficiency and sustainability efforts.

To reach your destination, you have to know where you are starting from. That’s why it’s so important that cities are taking advantage of ever-improving data collection and analytical capabilities to become the providers of rich databases of energy and water use in their jurisdictions.

Philadelphia's Energy Benchmarking program requires large commercial buildings to disclose their energy use. As a result, the city has a baseline of energy usage by nearly 2,000 buildings across multiple sectors. By sharing this data with building owners and energy managers, the city is focusing more attention on saving energy. And by sharing building data online with potential tenants, the city hopes to create a market for efficient buildings.

A similar program in New York City has had promising results. The disclosure policy corresponded with energy savings of nearly 6 percent - worth more than $260 million.

Brazil Green Fair demonstrates how climate solutions can be scaled

Photo by Amy Morsch

A volunteer from Escola University uses a model home to demonstrate energy-saving tactics at the first Brazilian Alcoa Green Fair in Poços de Caldas.

Seeing is believing, even if it’s a meticulously built model used to illustrate action in real life.

Take the model home Escola University volunteers displayed at a recent Alcoa Green Fair in Poços de Caldas, Brazil. From top to bottom, it demonstrated energy-saving actions in every nook to help visitors see how each small change can save kilowatts -- and money.

Communities can use the same concept to illustrate and communicate what actions will help save energy and reduce climate impacts.

The way we talk about climate and energy issues can either empower people to act or leave them overwhelmed. People won’t necessarily be moved to act just because they know about the challenges. More often, they will be moved because they feel a collective responsibility for a shared problem and understand how they can make a positive impact.

Through the Alcoa Green Fairs, C2ES and the Alcoa Foundation work to drive action on climate and energy issues in a positive and engaging way. Now, Alcoa and C2ES have pushed this successful U.S. program to the international stage. The first-ever fair in Brazil in August attracted 17 organizations and more than 750 people to Alcoa’s Poços de Caldas plant, about four hours north of the capital Sao Paulo, to see demonstrations, learn about resources, and discover new ways to be eco-friendly.

Events like the Alcoa Green Fairs highlight how organizations are stepping up to reduce their impacts, both collectively and one employee at a time. This leadership was evident when Alcoa plant managers, employee champions, the Alcoa Foundation, C2ES, and Sustainable Poços Association (APS) gathered at an early-morning roundtable discussion before the fair.

Weathering the Next Storm: A Closer Look at Business Resilience, Executive Summary

Weathering the Next Storm:
A Closer Look at Business Resilience
Executive Summary

September 22, 2015

By Katy Maher and Janet Peace

Download the Brief (PDF)

Infographic with key takeaways
and recommendations.
 

 

Increased extreme weather and climate-related impacts are imposing significant costs on society and on companies. While businesses are increasingly taking steps to assess risks and prepare for future climate changes, many companies face internal and external challenges that hinder efforts to move toward greater climate resilience. Building and expanding on an earlier review completed in 2013, C2ES examined how large companies are preparing for climate risk, who they are partnering with, and what is keeping them for doing more.

Janet Peace
Katy Maher
0

Are businesses prepared for climate impacts?

Increased extreme weather and climate-related impacts are imposing significant costs on communities and companies alike. While some businesses are taking steps to assess and address climate risks, many face internal and external challenges to building climate resilience.

In a new report, Weathering the Next Storm: A Closer Look at Business Resiliencereleased at Climate Week NYC, C2ES examined how major global companies are preparing for climate risks, and what is keeping them from doing more.

C2ES reviewed public disclosures of S&P Global 100 companies, conducted in-depth interviews, and held workshops with business leaders, government officials, academics and other stakeholders. Key findings include:

Major companies recognize and report climate risks.

We found 91 of the world’s largest 100 companies see extreme weather and other climate impacts as business risks. Business leaders see climate risks firsthand – in damaged facilities, interrupted power and water supplies, disrupted supply and distribution chains, and impacts on their employees’ lives.

Most (84 companies) discussed climate risk concerns in CDP questionnaires. Fewer companies did so in their sustainability reports (47) or financial filings (40).

More companies are assessing their vulnerabilities.

The vast majority of companies rely on existing risk management or business continuity planning to address climate risks.

Many see climate change as a “threat magnifier” that exacerbates risks they already know and understand. This lens puts climate change into a familiar business context, but companies could overlook or underestimate the threats they face.

Weathering the Next Storm: A Closer Look at Business Resilience

Weathering the Next Storm:
A Closer Look at Business Resilience

September 22, 2015

By Katy Maher and Janet Peace

Download the Report (PDF)

Infographic with key takeaways
and recommendations.

As we saw once again in 2014—the warmest year globally on record—increases in extreme weather and other climate-related impacts are imposing significant costs on society. Even as governments, companies and communities strengthen efforts to reduce emissions contributing to climate change, they are awakening to the urgent need to address growing climate impacts. Across the United States, governments at all levels are taking steps to strengthen climate resilience. Simultaneously, a growing number of companies are recognizing extreme weather and climate change as present or future business risks. For many companies, these rising risks extend well beyond the “fence line” to critical supply chains and infrastructure, and can be effectively managed only in partnership with the public sector.

Janet Peace
Katy Maher
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