Natural gas state vehicles.

13LSO-0146.C3

FISCAL NOTE

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
HIGHWAY FUND	$100,000	$100,000	$100,000
GAME & FISH FUND	$103,500	$103,500	$103,500

Source of Expenditure Increase:

Replacing gasoline or diesel powered vehicles with Compressed Natural Gas (CNG) powered Vehicles.

Assumptions:   

1. The Wyoming Department of Transportation anticipates that it can replace ten pick-up trucks per year based on current Compressed Natural Gas (CNG) facility fueling locations and the rotation of the WYDOT’s vehicle fleet.

2. It is estimated that it will cost an additional $10,000 per pick-up truck when replacing them with CNG.

3. WYDOT has attempted to use conversion kits for CNG, however through experience WYDOT does not recommend using conversion kits because they are not reliable nor readily available. Therefore, WYDOT would purchase replacement vehicles that are Original Equipment Manufacturer (OEM) only.  The cost of purchasing OEM CNG equipped bi-fuel trucks and vehicles cost about the same as converting an existing gasoline vehicle to operate on CNG.  

4. Currently there are no OEM Bi-Fuel CNG sedans available that meet WYDOT’s needs.  Most of the sedans are used to travel across the State and cannot be limited to travel in the areas currently providing CNG fueling.

5. Other vehicles and equipment to be replaced within WYDOT’s fleet are currently not produced by manufacturers that use CNG technology i.e.  dozers, motor graders, front end loaders, backhoes and heavy trucks.  There are no OEM CNG police packaged vehicles available at this time for the Highway Patrol.   Also, there are no OEM CNG equipped half-ton pick-ups currently available, however WYDOT believes that within a few years half-ton pick-ups will be available.  Until then, WYDOT anticipates replacing its limited number of half-ton pickups with OEM CNG three-quarter ton pick-ups and plans to do so as prescribed by this legislation until half-ton OEM CNG pick-up trucks are available.  OEM CNG heavy truck engines used for snow plows do not have the horsepower or torque currently available necessary to operate in the conditions required in Wyoming.

6. The availability of CNG fueling locations limits the number of vehicles that currently can be replaced by WYDOT to the areas of Evanston, Rock Springs, Cheyenne, Riverton, Pinedale and Laramie (when the facility that is currently being built in Laramie is operational).

7. WYDOT may experience additional repair, shop and training costs.  These costs are indeterminable and limited.

The Game & Fish anticipates that it can replace nine pick-up trucks per year based on current compressed natural gas facility fueling locations around the state and the rotation of our vehicle fleet. We estimate that it will cost an additional $11,500.00 per pick-up truck when replacing them with compressed natural gas based on the cost for a CNG truck the department purchased in fiscal year 2013. The department may experience additional repair or other unknown cost but at this time they are undeterminable. If the Department can find grant funding for the replacement cost the expenditure increase will be lass then estimated.

Anticipated Expenditure (Decrease):
HIGHWAY FUND	($26,680)	($53,360)	($80,040)
GAME & FISH FUND	($36,000)	($72,000)	($108,000)

Source of Expenditure Decrease: 

Fuel cost savings from converting vehicles from gasoline to CNG.

Assumptions:

The Wyoming Department of Transportation assumes:

1.) Anticipates that CNG will be $2.00 less per gallon than gasoline.

2.) Anticipates that each CNG vehicle will travel 20,000 mile per year.

3.) Based on the assumption that vehicles will run on CNG only.

4.) Vehicles replaced will get an estimated 15 miles per gallon using CNG.

The Game & Fish estimates that compressed natural gas will cost $2.00 less per gallon than gasoline, and the new vehicles will travel 30,000 mile per year at 15 miles per gallon with compressed natural gas, will pay for themselves within three years.

W.S. 39-17-101, which is created in section 1 of this bill, is repealed effective June 30, 2017.

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

A&I-General Services Division

Department of Education

Oil & Gas Commission

University of Wyoming

Community College Commission

Prepared by:   Kelley Shepp, LSO     Phone: 307-777-7881

(Information provided by: Annette Spitsbergen, A&I; 777-7248: Fred Hansen, Dept. of Education; 777-7804: Kevin Hibbard, WYDOT; 777-4026: Richard Reynders, Game & Fish; 777-4517: Robert King, Oil & Gas Commission; 307-234-7147: Matthew Petry, Community College Commission; 777-5859: Chris Boswell, UW; 307-766-2238)