New York City – Town of Smithtown NY Chooses CNG to Cut Refuse Collection Costs


Faced with rising refuse collection costs, the Town of Smithtown, New York, decided to require its refuse collection contractors to use compressed natural gas (CNG) trucks. It was the first New York municipality to institute such a requirement. On January 1, 2007, the 30 contractor-owned diesel refuse trucks collecting solid waste and recyclables from the town’s 116,000 residents were replaced by 22 CNG models.

Smithtown selected four bidders for seven-year contracts: Brothers Carting, Dejana Industries, Jody Industries, and V. Garafalo Carting. The companies were responsible for buying the new CNG trucks. To offset the higher cost for these trucks versus diesel trucks, the companies had the option of claiming the Federal Alternative Motor Vehicle Credit for up to 80% of the incremental cost. An alliance of local organizations helped the contractors find financing options.

To establish CNG fueling infrastructure, Smithtown partnered with natural gas supplier Clean Energy. With no leasing agreements, access fees, or capital outlay for Smithtown, the contract required Clean Energy to provide the fueling infrastructure and commission local service providers. Because of Smithtown’s new contract with the refuse collectors, Clean Energy had to complete the fueling station in six months–two to four months faster than it usually takes to locate a station, obtain permits, and secure a compressor.

To accomplish this, Clean Energy received permission from the New York Department of Transportation (NYDOT) and Office of General Services to allow expansion of a station in nearby Hauppauge, which Clean Energy already operated for New York State. The Hauppauge expansion supported NYDOT’s goal to increase natural gas use as a vehicle fuel and brought additional revenue to the state of $0.05 per gasoline gallon equivalent. Clean Energy expanded the Hauppauge volumetric gas flow rate from 15 to 2,000 scfm and opened the station within four months.Smithtown entered into an agreement on fuel pricing with Clean Energy through 2013. CNG costs for the refuse trucks started at $2.33 per diesel gallon equivalent (DGE) through 2008 and increase each year to conclude at $2.94 per DGE in 2013. The contracted CNG price could decrease if the price differential between diesel and CNG goes above a set threshold.

“Controlling refuse collection costs for town residents was the primary reason Smithtown chose CNG,” explained the coordinator of the Greater Long Island Clean Cities Coalition. “The commitment from Clean Energy to set a stable fuel price was very important.” Switching to CNG provides environmental and energy-security benefits for Smithtown.

The CNG refuse trucks are projected over the life of the contract to reduce emissions of nitrogen oxides by 265 tons and particulate matter by 15 tons. Smithtown also expects to displace more than 1.5 million DGE of petroleum-based fuel.The benefits are amplified when other towns adopt a similar strategy. Smithtown’s success inspired nearby Brookhaven to plan the deployment of 67 CNG trucks in 2009 in a similar effort.

Clean Cities inspired Smithtown’s move to CNG. In May 2006, Russell Barnett, Smithtown’s Environmental Protection Director, saw a Clean Cities alternative fuel presentation at the Federation of New York Solid Waste Associations Solid Waste/Recycling Conference & Trade Show in Bolton Landing, New York. The presentation persuaded him that CNG was the best choice for Smithtown’s refuse fleet. For more information, contact Russell Barnett.

Source: United States Department of Energy (DOE)

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Seattle Public Utilities Solid Waste Collection Contractors Begin Receiving Compressed Natural Gas Garbage Trucks


McNeilus Companies, Inc., has delivered the first of 144 new Cummins Westport powered Compressed Natural Gas (CNG) refuse trucks to the city of Seattle, Washington. The two contracted fleets servicing the Seattle Public Utilities Contract selected McNeilus to provide the refuse vehicles. The purchases are part of a statewide initiative to cut vehicle emissions in advance of the 2010 federal emissions requirements. McNeilus expects to deliver the remaining CNG vehicles in late March 2009. Contractors Waste Management, who purchased 106 of the CNG trucks, broke ground on a refuelling station to service the fleet as well as making public sales of CNG. Cleanscapes, the other Seattle PUC contractor will take delivery of the remainder of the vehicles.

“Alternative fuel vehicles help McNeilus customers to reduce their fuel bills in a difficult economy and creates a positive impact on the environment,” said Mike Wuest, Oshkosh Corporation executive vice president and president, Commercial. “With CNG, customers not only get a greener vehicle, but they also experience benefits to their bottom line with an economically viable alternative fuel.”

Recognizing the nationwide move toward environmentally friendly refuse collection, McNeilus has begun offering a turnkey solution for haulers looking to migrate to CNG-powered vehicles. Customers who purchase CNG-powered chassis can have the CNG system installed as the body proceeds down the assembly line at McNeilus. McNeilus has installed a CNG fueling depot at their factory in Minnesota to further streamline the process.

Source: International Association of Natural Gas Vehicles (IANGV)

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U.S. Says It Will Bail Out Christmas


With the government on the brink of rescuing the U.S. auto industry, we have learned that the Treasury Department is drawing up plans to bail out Christmas. “We have reason to believe,” said a person close to the matter, “that without an immediate capital injection, Santa Claus will fail before December 24.” Mr. Claus could not be reached for comment.

[Wonder Land] 

Government officials are said to be concerned at the risk that the collapse of Santa Claus could pose to the nation’s intricately related system of holiday happiness. Though a failure by Santa Claus poses the largest systemic risk, the government is also prepared to step in to bail out Christmas trees, caroling parties and mistletoe producers.

President-elect Barack Obama has been briefed on the initiative, and through a spokesman was quoted as saying, “I’m OK with bailing out Christmas.”

Inside Treasury, some officials privately worry that such a precedent could result in the nationalization of Santa Claus, leading to similar calls for help next year from the Easter Bunny and even Valentine’s Day. Treasury Secretary Henry Paulson personally concluded, however, that “Santa Claus is too big to fail.”

Daniel Henninger on the upcoming winter Wonder Land bailout.

Indeed, the situation was considered sufficiently dire that Mr. Paulson agreed to travel to the North Pole to speak to Mr. Claus. A Treasury official with knowledge of the situation agreed to provide this reporter with an account of the meeting. “Secretary Paulson,” this person said, “has had a lifetime belief in Santa Claus and firmly supports what he represents.”

Last Saturday morning, Mr. Paulson flew by government plane to meet with Santa, though a spokesman would not disclose the exact location of the famed toymaker’s North Pole workshop. Mr. Paulson’s plane landed on the polar ice cap, and then the Secretary was taken the final 300 miles in a sleigh pulled by Santa’s fleet of reindeer. In deference to Mr. Paulson’s unfamiliarity with sleigh-riding at altitude, Mr. Claus ordered his assistants to bring the Treasury department party overland.

The picture of Christmas painted for Mr. Paulson by his rosy-cheeked host was bleak.

Apparently Santa’s difficulties in “producing product,” as Mr. Paulson described it, originated in a poorly understood aspect of the jolly elf’s current operations known as “Christmas list swaps,” or CLIPS.

Mr. Claus said that going back as far as anyone can remember, Christmas lists had been handled in the traditional manner. Children would draw up lists, which were left out in the evening with a glass of milk for collection by Santa’s elves; other lists would be exchanged with siblings, cousins and loved ones.

Several years ago, according to a participant who requested anonymity, some of Santa’s elves were contacted by representatives from Bear Stearns and Lehman Brothers, who persuaded the elves of the benefits of an elaborate scheme of Christmas-list securitization.

As outlined to the elves, the idea worked like this. Brokers would break each item on the Christmas lists into separate pieces and repackage the requests as securities, using a formula known as a “benevolence diffusion algorithm.” This would guarantee happiness for everybody in the world on Christmas morning. No one would lose.

At first Santa was doubtful of the plan. Mrs. Claus was especially skeptical, pointing out that in her experience with baking Christmas cookies, a seemingly foolproof enterprise, a failure rate of 5% was not uncommon. “There is simply no historical data to suggest the whole world can be long Christmas,” Mrs. Claus said. “No scheme will ever rid the world of bad little girls and boys.”

According to a person with knowledge of the North Pole couple’s affairs, Santa received a call from a Franklin Raines, who identified himself as the president of a “government sponsored enterprise” known as Happie Mac. Santa apparently became convinced that Happie Mac sounded similar to his own business of free giving, and so agreed to the proposed system of Christmas list swaps.

Difficulties emerged when a CLIPS salesman from AIG called a senior elf to say that a large number of the Christmas list swaps had ended up in the hands of Russian billionaires with links to former Russian president Vladimir Putin. “These plutocrats don’t even believe in me,” Santa was heard to say as Mr. Paulson’s sleigh rode out of sight.

On returning to Washington, Mr. Paulson’s plan to bail out Christmas immediately ran into problems. Fed Chairman Ben Bernanke, whose great-great uncle is rumored to have been an elf, pointed out that Santa Claus might not qualify for a TARP loan. According the Fed’s analysis: “Santa Claus belongs to the people. Any bailout must pass through the appropriate committees of the House.”

House Speaker Nancy Pelosi, notwithstanding that she is the mother of five children, has reportedly told Mr. Paulson that Congress will bail out Christmas only in return for a promise from Santa Claus to “go green.” Speaker Pelosi said the Environmental Defense Fund has long complained about Santa’s eight tiny reindeer and that Mr. Claus would be asked to appear this Tuesday before Rep. Barney Frank’s committee with a plan to reduce the sleigh’s carbon footprint.

With only 13 days remaining for a Santa rescue, Mr. Paulson and Speaker Pelosi are said to be discussing the appointment of a Christmas czar. The leading candidate is Oprah Winfrey.

Source: Wall Street Journal

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