The Crested Butte News Serving the Gunnison Valley since 1999
Waiting on a January test bus
by Mark Reaman
To be the county leader in using compressed natural gas (CNG) or to wait and see how it goes elsewhere: That is the conundrum facing the Gunnison Valley Rural Transportation Authority (RTA) board.
The board is looking at buying six new buses over the next five years and how many, if any, would be ordered to run on CNG could determine the use of the fuel overall in Gunnison County. The board had decided to back off the CNG path but will now wait to make a decision until January after a CNG bus is brought up from Grand Junction to run a few laps in the high, cold climate of Gunnison County.
Gunnison County facilities director John Cattles has been the acknowledged leader of trying to use CNG in the area and he had hoped that one of the next two buses ordered would run on CNG instead of diesel.
At the December 11 RTA meeting, RTA executive director Scott Truex said the CNG bus would cost $170,000 more than the diesel, which “was way more than we had thought. Given the costs, that means a 2.7 million-mile break-even point.”
Truex said a Colorado Department of Local Affairs grant could pay for the additional costs to purchase CNG buses in 2016 and 2017.
“My feeling is that this is not necessarily a business decision,” Truex said. “It is driven by the county desire for CNG. There is some risk with the CNG choice.”
“The status of the CNG fueling station hinges on the RTA,” admitted Cattles. “The early stage of such a facility won’t support itself without a major user like the RTA. Other big users like Waste Management are years behind. So the station in Gunnison at this point hinges on multiple RTA buses using it. Otherwise it won’t be profitable and it won’t be built.”
Trillium CNG of Chicago has received a DOLA grant to build a CNG fueling station in Gunnison but the company needs commitments for fuel purchases to make it worthwhile. Cattles said the governor wants to encourage CNG as a fuel source and the state has set up grants to help fund stations. He said that Trillium has a half-million dollars in grant money for such a project but it expires in 2016. “We have a limited window to use the incentives,” he said.
Truex said it was initially thought the RTA could get a five-year grant cycle funded for CNG buses but that is less definite. Cattles said the money was there through 2017 but then would have to be applied for again for a three-year period. The RTA plans to purchase two vehicles in 2016, one in 2017, and four more from 2018 to 2020.
Cattles also explained that Gunnison was a linchpin in getting the CNG flowing in this part of the state. Currently, there are several CNG stations along Interstate 70 but nothing along Highway 50 between Pueblo and Grand Junction. Having a station in Gunnison opens the door for refueling for CNG trucks and vehicles wanting to use that route. And Cattles said many vehicles, including big rigs, were making the shift to CNG.
RTA chairperson Paula Swenson said that while diesel and gas prices were very low at the moment because of extremely low oil prices, that would likely change. Then CNG would seem a better bargain. “Looking into the future, the question is whether this is a good long-term decision for our community,” she said.
“I have confidence CNG will work but if I was fully confident I’d say we should buy two CNG buses next year. But I’m not fully confident,” said Truex.
RTA board member Jonathan Houck said the board could wait on making a decision until a trial run by a CNG bus in January.
Board member Leia Morrison said she had seen some recent studies indicating CNG was not much more environmentally clean than clean diesel.
Cattles said that study had been debunked and that CNG was essentially 30 percent more efficient. “CNG is a fossil fuel and has some negative environmental impacts but it is a transitional fuel,” he noted. Cattles said there were innovative ways to use the methane and other gasses that are associated with CNG.
Swenson said it was obvious the board was still cautious about jumping all-in to the CNG pool so it would be prudent to wait and see what information could be gleaned from the January test runs.
“It will be on the next agenda,” promised Truex.
“And then we can’t kick the can much farther down the road,” said Swenson.
