Tought Leader
Alternative Fuel vs. Diesel: Searching for Truth in Cost and Benefit Data
WRITTEN BY ROBERT T. PUDLEWSKI I
as many of you, have read articles which exhibit new alternative fueled school buses with dramatic tailpipe emissions benefits when compared to diesel. I also have even seen testimonials comparing alternative fuel savings as well as lower maintenance costs. Both approaches often compare pre-2010 engines to
new alternative fueled engine technology and go on to compare older diesel bus maintenance costs to those of brand new alternative fueled buses. So, I have continued to read on in search of truth when comparing “new” diesel to “new” alternative fuel buses. I recently read an article on the U.S. Department of
Energy’s Alternative Fuels Data Center website, www.
afdc.energy.gov, that negates diesel to propane emis- sions comparisons as the sole reason to not buy diesel powered school buses. In the report, the AFDC stated:
“Increasingly stringent emissions regulations have led to
the development of improved emissions control systems in conventional light- and heavy-duty vehicles. Tese systems effectively control the levels of air pollutants emitted from the vehicle as a result of the combustion of gasoline or diesel fuel. Consequently, tailpipe emissions from propane vehicles are comparable to those of gasoline and diesel vehicles with modern emissions controls.”
With that in mind and over 10,000 propane powered school buses currently on the road, it is apparent that the alternative fuel of choice has seen propane leading the way. Why?
Cost is the primary reason, according to the many
articles published by propane industry suppliers, trade associations and various operator testimonials. School districts buy propane powered buses for the cost benefits, with emphasis on the initial cost. Te cost benefits are driven by several factors:
• Grants to offset cost differentials over diesel • Grants to replace pre-2010 emission buses • •
if your school board would approve the purchase price without differential cost assistance of some form? In the short term, do not worry. I am sure that the many voices speaking of the “clean” benefits of alternative fuels and its domestic production at various state and federal regulatory agencies will work hard to prevent those grants and credits from going away. I often wonder how many alternative fueled school buses would be around if emissions-reduction initiatives had not been put in place and interpreted the way they have been.
When making the comparison of alternative fuels cost benefits, we often are led to believe that the good things like grants, incentives and fuel prices won’t change. So you need to be cautious when someone develops life cycle costs based on including temporary grant and tax incentive packages, and especially when comparisons are made to older diesel-powered buses. To better understand the impact of the incentives on fuel type alone, compare your alternative fuel prices after reading the excerpt below from the Clean Cities group. It compares fully burdened (taxes) fuel pricing: Recently, Clean Cities published its “Alternative Fuel
Price Report” dated 9/5/17. In the report it is described how prices were gathered from Clean Cities coordina- tors and stakeholders between July 1, 2017 and July 17, 2017, and then averaged in order to determine regional price trends by fuel and variability in fuel price within regions and among regions. Te prices collected for this report represent retail, at-the-pump sales prices for each fuel, including federal and state motor fuel taxes. It goes on to state that the nationwide average price (all amounts are per gallon) for regular gasoline has decreased 12 cents from $2.38 to $2.26; diesel decreased 8 cents from $2.55 to $2.47; CNG price is unchanged at $2.15; ethanol (E85) decreased 12 cents from $2.11 to $1.99; propane increased 1 cent from $2.83 to $2.84;(not counting the $0.50/gallon fuel tax credit)* and biodiesel (B20) is unchanged at $2.49.
State energy grants for fuel and fueling sites Alternative fuel tax credits
What would happen if all that ended? Raise your hand 28 School Transportation News • FEBRUARY 2018
*Te Federal Alternative fuel tax credit expired Dec. 31, 2016. It was expected to be renewed by the end of 2017 but at this writing was still being worked on in Congress.
Robert T. Pudlewski has over four decades of experience in the school bus industry. He is the retired vice president of fleet operations, procurement and maintenance for Laidlaw.
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