Pace could follow example of Los Angeles, other cities in growing use of compressed natural gas

Keith Nielsen unhooks the last diesel bus in L.A.'s fleet of 2,228 vehicles. (Kirk McKoy, Los Angeles Times / March 27, 2011)




6:29 p.m. CDT, March 27, 2011
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With diesel fuel prices spiking, Pace is thinking about buying new buses powered by compressed natural gas and putting the suburban bus agency on a growing list of "green" transit agencies that use the cleaner-burning fuel.

Agency officials were intrigued by a recent pitch from North American Bus Industries Inc., the Alabama-based manufacturer of the lightweight, carbon-fiber, compressed natural gas-powered buses used by the Los Angeles County Metropolitan Transportation Authority, or Metro.

In January, Metro became the first major transit agency in the world with a CNG-only fleet when it held a "retirement ceremony" for the last diesel bus in its 2,228-vehicle system.

"As a public transit agency, we need to take a leadership role as it relates to providing us with some safety from volatile fuel prices, while also doing our part to mitigate air pollution," Pace Chairman Richard Kwasneski said.



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It's not the first time Pace has considered adding CNG buses to its fleet of 372 buses. In 2009, the agency and the Illinois Tollway sought a $200 million federal stimulus grant to buy 50 new CNG or hybrid buses to provide express service on the Tri-State Tollway (I-294). The Pace-tollway proposal lost out to a project to unclog rail congestion.

But with the Mideast turmoil sending oil prices soaring above $100 a barrel, and heightened concerns about unhealthy emissions, Pace officials say the time is right to consider alternatives to diesel. Much of the CNG used in the U.S. is produced domestically and has not experienced the same price spurts as diesel and gasoline, while producing far fewer harmful exhaust emissions, proponents say.

Q: What is CNG?

A: It is a natural gas under pressure that remains clear, odorless and noncorrosive. It has been used as a vehicle fuel for decades, but only recently has its use become more widespread in the U.S., mainly in California, because of rising gasoline prices and the need to reduce air pollution emissions. More than 99 percent of the natural gas used in the U.S. comes from domestic or other North American sources, and it's delivered via pipeline. Natural gas is cleaner-burning than gasoline or diesel fuel. Natural gas vehicles show an average reduction in ozone-forming emissions of 80 percent compared to gasoline vehicles, according to the California Energy Commission.

Q: Which bus agencies use CNG?

A: More than 50 transit agencies across the U.S. are using it to power buses, and the number is growing, according to the American Public Transportation Association. From 1996 to 2009, the use of natural gas in public transit buses has grown from less than 3 percent to more than 18 percent, while the use of diesel has dropped from 95 percent to about 69 percent.

With about 500 buses in its fleet, Salt Lake City recently completed a test of CNG buses and decided to buy 10 vehicles, with the long-range goal of weaning itself off diesel use, Utah Transit Authority spokesman Gerry Carpenter said.

Other major cities using CNG buses include New York, Washington, Dallas and Boston.

In Illinois, the Quad Cities' Metro bus system uses CNG in half of its fleet of 60 coaches. In Springfield, CNG fuels 28 of the city's 50 buses.

"All across the country, the public transit agencies have gone green and are doing everything they can to increase their environmentally friendly buses," said American Public Transportation Association spokeswoman Virginia Miller. "CNG has really taken off."

Q: What about the CTA here in Chicago?

A: The CTA has considered using alternative fuels and ways to reduce emissions for decades, but it has decided not to purchase any CNG buses, deeming them not cost-effective, spokeswoman Noelle Gaffney said. The CTA also cited the "significant upfront capital investment" to install the necessary fueling, maintenance and safety equipment, Gaffney said.

The CTA has added 228 diesel-electric hybrid buses and low-emission diesel buses to its fleet. In October, the CTA received a $2.2 million federal grant to buy two all-electric buses, which will be tested to see how well they perform in regular service.

"We remain open to whatever technologies, including CNG, provide the best combination of benefits from both business and environmental standpoints," Gaffney said.

Q: Is CNG cheaper than diesel?

A: CNG typically costs less than diesel, on an equivalent-gallon basis, but the gap varies. According to the U.S. Department of Energy's latest comparison, the nationwide average price of a gallon of diesel was $3.45 in January, compared to $2.15 per diesel gallon equivalent for CNG. Five years ago, in February 2006, diesel cost $2.22 per gallon nationally versus $1.99 per diesel gallon equivalent of CNG.

Q: Are CNG buses more cost-efficient?

A: Los Angeles' Metro system has found that CNG buses are more labor-intensive, costing about 15 percent more to operate than standard diesel buses, largely because of increased maintenance costs, said John Drayton, manager of Metro's vehicle technology department. But Metro believes these higher costs are a tradeoff for lower fuel prices, Drayton said. North American Bus says its 45-foot CNG CompuBus' annual operating cost is $280,000 versus $298,000 for a 40-foot steel diesel.

Q: What about the price of a CNG bus versus diesel?

A: Bus prices can vary greatly, depending on size and equipment. The fuel system and engine package needed for a CNG bus can add $50,000 to the cost of a $350,000 bus, Drayton said.

Other costs include installation of CNG fueling equipment, such as tanks and compressors. CNG fueling facilities are more complicated than diesel.

The CNG fueling center for the Quad Cities' Metro system in Moline cost about $1.2 million when it was built in 2000, but the lower cost of CNG has made up that cost, said Jennifer Garrity, a spokeswoman for Quad Cities transit. "It has been a solid return on our investment," she said.

The Federal Transit Administration is encouraging CNG use. It awarded tens of millions of dollars in grants to transit agencies last year for the acquisition of CNG buses and installation of fueling stations.

Q: Are CNG buses really "greener?"

A: Recent improvements in technology and more stringent Environmental Protection Agency requirements have helped reduce harmful diesel emissions, experts say.

LA Metro says its CNG fleet reduces cancer-causing particulate matter by more than 80 percent over diesel buses, and it avoids emitting nearly 300,000 pounds of greenhouse gas per day.

Q: What's down the road for Pace?

A: Pace says it plans to spend more than $243 million over the next 10 years on new buses to replace its fleet as it ages. Pace's directors and staff will carefully analyze costs and environmental benefits, spokesman Patrick Wilmot said, but officials have not set a timetable for their decision.

"We want and need to make the decision that is best and most cost-effective for the region," Kwasneski said.


Buck