April 7, 2011
Smithtown Selects CNG to Cut Refuse Collection Costs
“Smithtown expects to displace more than 1.5 million DGE of petroleum-based fuel.”
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 scfm 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.
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.