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ALTERNATIVE FUEL
The U.S. Department of Energy
(DOE) defines an alternative fuel
as a product that is substantially
nonpetroleum which yields energy
security and environmental
benefits.
The Energy Policy Act of 1993
(EPAct) DOE currently recognizes
the following as alternative fuels:

• Mixtures containing 85% or
more by volume of alcohol fuel,
including methanol and
denatured ethanol
• Natural gas (compressed or
liquefied)
• Liquefied petroleum gas
(propane)
• Hydrogen
• Coal-derived liquid fuels
• Fuels derived from biological
materials
• Electricity (including electricity
from solar energy)
• 100% Biodiesel (B100)
Pure biodiesel (B100) is considered
an alternative fuel under EPAct. But
lower-level biodiesel blends are not
considered alternative fuels
What are the characteristics of alternative fuels?
Primary
Components
Biodiesel

Compressed
Natural Gas
(CNG)
Ethanol (E85)

Liquefied
Natural Gas
(LNG)
Liquefied
Petroleum
Gas (LPG)

Methanol
(M85)

Vegetable oil,
animal fats, or
recycled restaurant grease
Methane

Denatured
ethanol and
gasoline
Methane that
is cooled
cryogenically
Propane

Methanol and
gasoline

Main
Fuel
Source
Soybean oil

Liquid
or
Gas
Liquid

Underground
reserves
Corn, grains, or
agricultural
waste
Underground
reserves

Gas

A by-product of
petroleum
refining or
natural gas
processing
Natural gas,
coal, or woody
biomass

Liquid

Liquid

Liquid

Liquid
ALTERNATIVE FUEL VEHICLES
Compressed
Natural
Biodiesel(B20)
Gas(CNG)
Any vehicle that
Many types of
runs on diesel today- vehicle classes.
no modifications are
needed for up to 5%
blends. Many
engines also
compatible with up
to 20% blends.

Electricity
Neighborhood
electric vehicles,
bicycles, light-duty
vehicles, medium
and heavy-duty
trucks and buses.

Ethanol(E85)
Light-duty vehicles,
medium and heavyduty trucks and
buses - these vehicles
are flexible fuel
vehicles that can be
fueled with E85
(ethanol), gasoline,
or any combination
of the two fuels.
ALTERNATIVE FUEL VEHICLES
Hydrogen
No vehicles are
available for
commercial sale
yet, but some
vehicles are being
leased for
demonstration
purposes.

Liquified Natural Gas
(LNG)

Liquified Petroleum
Gas (LPG)

Methanol (M85)

Medium and heavy-duty Light-duty vehicles,
Mostly Heavytrucks and buses.
which can be fueled
duty buses are
with propane or
available.
gasoline, medium and
heavy-duty trucks and
buses that run on
propane.
Ethanol
Ethanol is an alcohol-based alternative fuel
produced by fermenting and distilling starch
crops that have been converted into simple
sugars. Feedstocks for this fuel include
corn, barley, and wheat.
Ethanol can also be
produced from
"cellulosic
biomass" such as
trees and grasses
and is called
bioethanol. Ethanol
is most commonly
used to increase
octane and improve
the emissions
quality of gasoline.
Natural Gas
Natural gas is a mixture of hydrocarbons, mainly
methane, and is produced either from gas wells or in
conjunction with crude oil production. Natural gas
is consumed in the residential, commercial,
industrial, and utility markets.
Natural gas can either be stored onboard a vehicle
as compressed natural gas (CNG) or as liquefied
natural gas (LNG). Natural gas can also be blended
with hydrogen.
Natural Gas
The future holds great potential for natural
gas because it can potentially be used in
fuel cell vehicles to make hydrogen.
Researchers found that fuel cell vehicles
using hydrogen produced from natural gas
could present an attractive solution for
cutting greenhouse gas emissions.
Propane
Propane or liquefied petroleum gas (LPG) is
a popular alternative fuel choice for
vehicles. Propane is produced as a byproduct of natural gas processing and
petroleum refining so there is already an
infrastructure of pipelines, processing
facilities, and storage for its efficient
distribution.
Hydrogen
The simplest and lightest fuel is hydrogen
gas. Hydrogen may contain low levels of
carbon monoxide and carbon dioxide,
depending on the source.
Hydrogen
Hydrogen can be produced using diverse,
domestic resources including fossil fuels,
such as natural gas and coal, nuclear; and
biomass and other renewable energy
technologies, such as wind, solar,
geothermal, and hydro-electric power.
Hydrogen
Hydrogen will play an important role in
developing sustainable transportation in the
United States, because in the future it may
be produced in virtually unlimited
quantities using renewable resources.
Hydrogen
Hydrogen is being explored for use in
combustion engines and fuel cell electric
vehicles. The energy density of hydrogen is
very low under ambient conditions which
presents greater transportation and storage
hurdles than for liquid fuels. Storage
systems are being developed to address
these problems.
HCNG
DOE's Natural Gas Vehicle Technology is
supporting a project to develop heavy-duty
HCNG engines and transit buses. The
HCNG (20% hydrogen / 80% CNG)
engines demonstrated lower emissions than
similar engines fueled by CNG alone. This
blend provided no significant change in fuel
efficiency.
Electricity
Trucks with a
hybrid-electric
powertrain combine
a diesel engine and
electric motor to
drive the vehicle.
Electricity
Batteries capture and
store energy
providing a source of
stored electric power
for the motor during
future acceleration.
All electrical
charging of the
battery is provided
by the hybrid electric
powertrain, and no
external electrical
infrastructure, such
as a power cord or
electrical outlet, is
needed.

Electricity
The balance between
conventional and
electric technology is
an innovative method
to improve
environmental
performance and
decrease fuel use while
eliminating the need
for high electricaldemand infrastructure
costs.

Electricity
Methanol is
produced from
natural gas in
production plants
with 60% total
energy efficiency.
Methanol can be
made with any
renewable resource
containing carbon
such as seaweed,
waste wood and
garbage.

Methanol
Methanol offers the
greatest hope for
early and broad
introduction of fuel
cells that will make
Electric Vehicles
practical within the
next few years.

Methanol
Whether reformed to
provide hydrogen for
conventional fuel cells
or used directly in the
latest liquid fed cells,
methanol will
overcome the greatest
remaining obstacle to
commercialization, by
offering the only
economical way to
transport and store the
hydrogen needed for
fuel cells.

Methanol
Methanol fuel cells
will greatly reduce
carbon dioxide
emissions for
vehicles and
virtually eliminate
smog and
particulate
pollution.

Methanol
Biodiesel
Biodiesel contains no petroleum,
but it can be blended at any level
with petroleum diesel to create a
biodiesel blend. It can be used in
compression-ignition (diesel)
engines with little or no
modifications.
Biodiesel
Biodiesel can be used as a pure fuel or
blended with petroleum in any
percentage. B20 (a blend of 20 percent
by volume biodiesel with 80 percent by
volume petroleum diesel) has
demonstrated significant environmental
benefits.
Biodiesel
Biodiesel is registered as a fuel and fuel
additive with the EPA and meets clean
diesel standards established by the
California Air Resources Board (CARB).
Neat (100 percent) biodiesel has been
designated as an alternative fuel by the
Department of Energy (DOE) and the US
Department of Transportation (DOT).
Biodiesel
The National Biodiesel Board has released the
following sales volume estimates for the US:

2005 -- 75 million gallons
2004 -- 25 million gallons
2003 -- 20 million gallons
2002 -- 15 million gallons
2001 -- 5 million gallons
2000 -- 2 million gallons
1999 -- 500,000 gallons
PROBLEMS
ASSOCIATED WITH
ALTERNATIVE FUELS
How to
convert
gases to
gallons for
tax
calculations?
Will taxing
model have
to be
modified in
the future?
Difference in
definitions?
For example,
EPA says
B100 is
alternative fuel,
but a blend is
not.
How to
measure
electricity,
solar power,
and wind
power?
OPTIONS
Use Department
of Energy’s
Gasoline Gallon
Equivalent.
A gasoline gallon equivalent
(GGE) is the amount of fuel
required to equal the energy
content of one liquid gallon of
gasoline. A GGE is a way of
comparing equivalent volumes
of fuel based on the energy
content in British thermal units
(Btu).
OPTIONS
Jurisdictions
could assign
set MPGs
a
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T

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Document 19

  • 2. The U.S. Department of Energy (DOE) defines an alternative fuel as a product that is substantially nonpetroleum which yields energy security and environmental benefits.
  • 3. The Energy Policy Act of 1993 (EPAct) DOE currently recognizes the following as alternative fuels: • Mixtures containing 85% or more by volume of alcohol fuel, including methanol and denatured ethanol
  • 4. • Natural gas (compressed or liquefied) • Liquefied petroleum gas (propane) • Hydrogen • Coal-derived liquid fuels
  • 5. • Fuels derived from biological materials • Electricity (including electricity from solar energy) • 100% Biodiesel (B100)
  • 6. Pure biodiesel (B100) is considered an alternative fuel under EPAct. But lower-level biodiesel blends are not considered alternative fuels
  • 7. What are the characteristics of alternative fuels? Primary Components Biodiesel Compressed Natural Gas (CNG) Ethanol (E85) Liquefied Natural Gas (LNG) Liquefied Petroleum Gas (LPG) Methanol (M85) Vegetable oil, animal fats, or recycled restaurant grease Methane Denatured ethanol and gasoline Methane that is cooled cryogenically Propane Methanol and gasoline Main Fuel Source Soybean oil Liquid or Gas Liquid Underground reserves Corn, grains, or agricultural waste Underground reserves Gas A by-product of petroleum refining or natural gas processing Natural gas, coal, or woody biomass Liquid Liquid Liquid Liquid
  • 8. ALTERNATIVE FUEL VEHICLES Compressed Natural Biodiesel(B20) Gas(CNG) Any vehicle that Many types of runs on diesel today- vehicle classes. no modifications are needed for up to 5% blends. Many engines also compatible with up to 20% blends. Electricity Neighborhood electric vehicles, bicycles, light-duty vehicles, medium and heavy-duty trucks and buses. Ethanol(E85) Light-duty vehicles, medium and heavyduty trucks and buses - these vehicles are flexible fuel vehicles that can be fueled with E85 (ethanol), gasoline, or any combination of the two fuels.
  • 9. ALTERNATIVE FUEL VEHICLES Hydrogen No vehicles are available for commercial sale yet, but some vehicles are being leased for demonstration purposes. Liquified Natural Gas (LNG) Liquified Petroleum Gas (LPG) Methanol (M85) Medium and heavy-duty Light-duty vehicles, Mostly Heavytrucks and buses. which can be fueled duty buses are with propane or available. gasoline, medium and heavy-duty trucks and buses that run on propane.
  • 10. Ethanol Ethanol is an alcohol-based alternative fuel produced by fermenting and distilling starch crops that have been converted into simple sugars. Feedstocks for this fuel include corn, barley, and wheat.
  • 11. Ethanol can also be produced from "cellulosic biomass" such as trees and grasses and is called bioethanol. Ethanol is most commonly used to increase octane and improve the emissions quality of gasoline.
  • 12. Natural Gas Natural gas is a mixture of hydrocarbons, mainly methane, and is produced either from gas wells or in conjunction with crude oil production. Natural gas is consumed in the residential, commercial, industrial, and utility markets. Natural gas can either be stored onboard a vehicle as compressed natural gas (CNG) or as liquefied natural gas (LNG). Natural gas can also be blended with hydrogen.
  • 13. Natural Gas The future holds great potential for natural gas because it can potentially be used in fuel cell vehicles to make hydrogen. Researchers found that fuel cell vehicles using hydrogen produced from natural gas could present an attractive solution for cutting greenhouse gas emissions.
  • 14. Propane Propane or liquefied petroleum gas (LPG) is a popular alternative fuel choice for vehicles. Propane is produced as a byproduct of natural gas processing and petroleum refining so there is already an infrastructure of pipelines, processing facilities, and storage for its efficient distribution.
  • 15. Hydrogen The simplest and lightest fuel is hydrogen gas. Hydrogen may contain low levels of carbon monoxide and carbon dioxide, depending on the source.
  • 16. Hydrogen Hydrogen can be produced using diverse, domestic resources including fossil fuels, such as natural gas and coal, nuclear; and biomass and other renewable energy technologies, such as wind, solar, geothermal, and hydro-electric power.
  • 17. Hydrogen Hydrogen will play an important role in developing sustainable transportation in the United States, because in the future it may be produced in virtually unlimited quantities using renewable resources.
  • 18. Hydrogen Hydrogen is being explored for use in combustion engines and fuel cell electric vehicles. The energy density of hydrogen is very low under ambient conditions which presents greater transportation and storage hurdles than for liquid fuels. Storage systems are being developed to address these problems.
  • 19. HCNG DOE's Natural Gas Vehicle Technology is supporting a project to develop heavy-duty HCNG engines and transit buses. The HCNG (20% hydrogen / 80% CNG) engines demonstrated lower emissions than similar engines fueled by CNG alone. This blend provided no significant change in fuel efficiency.
  • 20. Electricity Trucks with a hybrid-electric powertrain combine a diesel engine and electric motor to drive the vehicle.
  • 21. Electricity Batteries capture and store energy providing a source of stored electric power for the motor during future acceleration.
  • 22. All electrical charging of the battery is provided by the hybrid electric powertrain, and no external electrical infrastructure, such as a power cord or electrical outlet, is needed. Electricity
  • 23. The balance between conventional and electric technology is an innovative method to improve environmental performance and decrease fuel use while eliminating the need for high electricaldemand infrastructure costs. Electricity
  • 24. Methanol is produced from natural gas in production plants with 60% total energy efficiency. Methanol can be made with any renewable resource containing carbon such as seaweed, waste wood and garbage. Methanol
  • 25. Methanol offers the greatest hope for early and broad introduction of fuel cells that will make Electric Vehicles practical within the next few years. Methanol
  • 26. Whether reformed to provide hydrogen for conventional fuel cells or used directly in the latest liquid fed cells, methanol will overcome the greatest remaining obstacle to commercialization, by offering the only economical way to transport and store the hydrogen needed for fuel cells. Methanol
  • 27. Methanol fuel cells will greatly reduce carbon dioxide emissions for vehicles and virtually eliminate smog and particulate pollution. Methanol
  • 28. Biodiesel Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. It can be used in compression-ignition (diesel) engines with little or no modifications.
  • 29. Biodiesel Biodiesel can be used as a pure fuel or blended with petroleum in any percentage. B20 (a blend of 20 percent by volume biodiesel with 80 percent by volume petroleum diesel) has demonstrated significant environmental benefits.
  • 30. Biodiesel Biodiesel is registered as a fuel and fuel additive with the EPA and meets clean diesel standards established by the California Air Resources Board (CARB). Neat (100 percent) biodiesel has been designated as an alternative fuel by the Department of Energy (DOE) and the US Department of Transportation (DOT).
  • 31. Biodiesel The National Biodiesel Board has released the following sales volume estimates for the US: 2005 -- 75 million gallons 2004 -- 25 million gallons 2003 -- 20 million gallons 2002 -- 15 million gallons 2001 -- 5 million gallons 2000 -- 2 million gallons 1999 -- 500,000 gallons
  • 33. How to convert gases to gallons for tax calculations?
  • 34. Will taxing model have to be modified in the future?
  • 35. Difference in definitions? For example, EPA says B100 is alternative fuel, but a blend is not.
  • 38. A gasoline gallon equivalent (GGE) is the amount of fuel required to equal the energy content of one liquid gallon of gasoline. A GGE is a way of comparing equivalent volumes of fuel based on the energy content in British thermal units (Btu).