Love’s Subsidiary Selected for 20-Year, $84.5 Million Project
To ‘Design, Build, Finance, Operate and Maintain’ Transit Sites,
Seven of Which, to Start, Will Offer CNG Fueling to the Public
The Pennsylvania Department of Transportation has selected Love’s Travel Stops’ Trillium CNG unit to build 29 compressed natural gas fueling facilities for transit vehicles as part of the agency’s 20-year, $84.5 million Public-Private Partnership (P3) project.
Trillium is to “design, build, finance, operate and maintain” the new CNG fueling stations,” states the PennDoT announcement. “Stations will be constructed over the next five years and the firm will also make CNG-related upgrades to existing transit maintenance facilities.”
“With Pennsylvania’s natural gas resources, this project will not only bring efficiencies for transit agencies and the state, but we’re also helping establish a foothold for the CNG transportation market in areas that may not have seen this opportunity for some time,” said PennDoT Secretary Leslie Richards, who broke the news at a media event at the Cambria County Transportation Authority’s Johnstown facility yesterday.
$100 Million in Projected Savings
PennDoT said that it expects transit agencies – and the department – to realize significant savings on fuewl. “Based on current CNG, diesel and gasoline prices as well as fuel usage, agencies can save a total of more than $10 million annually,” the agency says. “After 10 years, the department estimates that the project will pay for itself with the estimated $100 million in savings.”
“As part of Trillium’s proposal,” says PennDoT, “CNG fueling will be accessible to the public at seven transit agency sites, with the option to add to additional sites in the future.
A 15% Royalty to PennDoT
“PennDOT will receive a 15% royalty, excluding taxes, for each gallon of fuel sold to the public, which will be used to support the cost of the project,” the agency adds. “The team has guaranteed at least $2.1 million in royalties over the term of the agreement.”
“This is an expansive project that will provide cleaner-burning fuel at a stable cost for transit authorities and residents in dozens of communities,” Love’s natural gas GM Bill Cashmareck said in a company release.
More Than 1,600 Buses
“This agreement highlights Trillium’s record of partnering with the public sector and we look forward to building on that strength,” he said.
The new facilities will supply CNG to more than 1,600 CNG buses at various Pennsylvania transit agencies, says Love’s. “The fueling sites will be strategically placed throughout the state to give fleets and motorists convenient access.”
Love’s said on Monday that it has closed on its acquisition of Trillium CNG, announced early last month (F&F, February 2).
Love’s notes that it currently operates five travel stops in Pennsylvania, while Trillium operates three CNG facilities in the state. Trillium has also developed several sites now operated by third parties.
PennDoT released the following list of agencies participating in the P3 project, in order of construction-start timeline:
- Cambria County Transportation Authority, Johnstown (2016), includes public fueling*;
- Centre Area Transportation Authority (2016);
- York Adams County Transportation Authority, York Facility (2016), includes public fueling;
- Mid Mon Valley Transportation Authority (2017)*;
- Cambria County Transportation Authority, Ebensburg Facility (2017)*;
- Indiana County Transportation Authority (2017)*, includes public fueling;
- Lehigh and Northampton Transportation Authority, Allentown Facility (2017)*;
- Westmoreland County Transportation Authority (2017)*;
- County of Lackawanna Transportation System (2017)*, includes public fueling;
- New Castle Area Transportation Authority (2017)*, includes public fueling;
- Altoona Metro Transit (2017)*;
- Beaver County Transportation Authority (2017)*, includes public fueling;
- Lehigh and Northampton Transportation Authority, Easton Facility (2017)*;
- York Adams County Transportation Authority, Gettysburg Facility (2017)*;
- Luzerne County Transportation Authority (2017)*;
- Crawford Area Transportation Authority (2017);
- Erie Metropolitan Transportation Authority (2018), includes public fueling;
- County of Lebanon Transportation Authority (2018)*;
- Schuylkill Transportation System (2018)*;
- Monroe County Transportation Authority (2019)*;
- Area Transportation Authority of North Central Pennsylvania, Bradford Facility (2019)*;
- Area Transportation Authority of North Central Pennsylvania, Johnsonburg Facility (2019)*;
- Butler Transportation Authority (2019)*;
- Mercer County Regional Council of Governments (2019)*;
- Fayette Area Coordinated Transportation System (2019)*;
- DuBois, Falls Creek, Sandy Township Joint Transportation Authority (2020);
- Transit Authority of Warren County (2021)*;
- Capital Area Transit (2021); and
- Port Authority of Allegheny County (2021).
* includes facility modifications
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Source: Love’s and PennDoT with Fleets & Fuels follow-up