APWA CONGRESS 2008HOW GREEN IS YOUR

FLEET?

BEFORE WE BEGINWho’s Here?????

Directors, Managers, Fleet Managers, Operation Managers, Operators… etc

How many have started to “Green your Fleet”?

Does everyone know what a “Carbon Foot Print” is?

Who is up here today ………..

Jeff McIsaacCDG Operations & Technology Manager,

Unilever Canada, Toronto CanadaDave Seavey

Director of Fleet Services Division, City of Seattle WA

John ScharffbilligMinnesota Department of Transportation

State Fleet Manager

All Systems must be in place to be successful

Technology DataGoals

Fuels

Requires a Systems ApproachNo one thing alone can meet the future

requirements.

Vehicles

Past Future

NATIONAL GOVERNORS’ ASSOCIATION –July 23, 2007

~ Unveils “Securing a Clean Energy Future”as chair’s initiative for 2007-08 ~

“America is at a tipping point,” Governor Pawlenty said. “Our country is too dependent on imported sources of energy and greenhouse gas emissions continue to grow too quickly. Governors have a tremendous opportunity to lead the country toward a cleaner, more independent, more secure energy future.”To address the myriad energy challenges the United States faces, Securing a Clean Energy Future will examine ways governors and states can:

Increase production of cleaner domestic fuels

Promote advanced electricity generation

Improve energy efficiency and conservation

Accelerate research and development of clean energy technologies

Climate change action plan to reduce

greenhouse gas emissions

This bill US Energy Bill N-6 would require an action plan by states that would identify the steps to reducing Greenhouse Gas Emission

DPF 2007 Exhaust

SF 481-- California Emission StandardsSF 2724—Biodiesel9-29-05—2% May-1-09—5% May- 1-2012—10% May-1-2015—20%SF 2818– G.H.G. Cap Trade SF 3337– Greenhouse Gas Emission Reduction

HF 863– California Emission StandardsHF2987—Biodiesel9-29-05—2% May-1-09—5% May- 1-2012—10% May-1-2015—20%

HF 3401– G.H.G. Cap Trade

FLEET LEGISLATION“STATE Of MINNESOTA

AGENCIES WILL LEAD BY EXAMPLE”

H.F. No. 3718, 4th Engrossment - 84th Legislative Session (2005-2006)

Posted on May 12, 2006

A bill for an act relating to transportation; requiring language that the state will purchase plug-in hybrid electric vehicles when commercially available to be inserted in certain

bid documents; creating a task force.

STATE PURCHASING OF PLUG-IN HYBRID ELECTRIC VEHICLES.

PLUG-IN HYBRID ELECTRIC VEHICLE RETROFIT PROJECT.

PLUG-IN HYBRID ELECTRIC VEHICLE TASK FORCE.

Individual Battery Cells PHEV Battery Pack before Installation

Ford Escape on Emissions Dynamometer

MN/DOT’sHybrid-Electric Truck

"Eaton are deliveringan integrated solution that allows the customer

to attain a 40 to 60 percent increase in fuel economy and exceed new standards for

fuel emissions,"

How to Green Your Fleet:A Simple and Practical Approach

to Reduce Vehicle Emissions

Global warming is undeniable,

Macro Trends

“Warming of the climate system is unequivocal, as

is now evident from observations of increases in global average air and

ocean temperatures, widespread melting of

snow and ice, and rising global mean sea level.”

Is caused by the Greenhouse Effect

Macro Trends

Forces are Converging

Business• “This is not a social responsibility issue but a business

problem” Johanne Gelinas, Partner, Deloitte & Touche• “Taking action on climate change is good for our

business, good for our customers and good for the environment” Keith Trent, Chief Strategist, Duke Energy

Regulation• Different targets: B.C.'s targets to cut one-third of the

province's carbon footprint by 2020 using a fixed cap on industry emissions are tougher than the federal proposal to have certain heavy industries reduce the intensity of their emissions by 18 per cent by 2010.

So Why Focus on Fleet?

Transportation emissions are a big piece of the pieSources of GHG Emissions in

Canada, 2005

Light Duty23%

Heavy Duty24%Autos

22%

Offroad14%

Other6%

Aviation5%

Marine3%

Railways3%

Breakdown of Transportation Emissions, 2005

The amount of CO2 released from vehicle combustion can be measured

The Impact is Measurable

litre of gasoline1 2.4

kg of CO2~

litre of diesel ~ 2.7

kg of CO21The average fleet

vehicle emits approximately 9 Mt

per year

How did the initiative start?

• Aug 2006 - question from an environmentally-conscious fleet driver whyhybrids weren’t available was the initial spark for pursuing this agenda

• Oct 2006 - approval from Unilever Canada management to develop a“green fleet” program

• Jan 2007 - agreement with our fleet services provider, GE Fleet, tojointly developing a “green fleet” program, with Unilever as the NA pilot

• Feb 2007 – kickoff meeting with GE to begin development of theprogram, following their newly drafted roadmap for improving fleetenvironmental performance

Unilever Canada

Fleet Profile

Find The Right Solution

A Variety Of Approaches, But No Silver Bullet

There are many approaches to improving environmental performance

Create the Roadmap

Star

t

BusinessGoals

EnvironmentalGoals

Scenario Modeling

Baseline Current CO2Emissions

• Review total fleet operation

• Select data source

Unilever Baseline2,510 MT

Select , Implement, and Monitor

Initiatives

• Vehicle selector• Fleet policy

changes• Annual review

reporting

Program framework was created based on our ingoing goals & evaluation of a menu of options

Create the Framework

Our Goals:

1/ Reduce C02 Emissions2/ Positive Driver

Experience 3/ Educate drivers and

Employees

Overall: No Cost Increase`

Program options were included for evaluation based on an assessment from three perspectives

- driver reception, cost and availability -

• Included: hybrids, fuel efficiency, asset type, engine efficiency, driver training, driver communications, incentiveprogram, replacement policy

• Excluded: electric, natural gas, propane• Revisit: diesel, bio-diesel, E85, hydrogen, telematics

Create the Framework

Two rules had to be followed:• New vehicles must fit in existing selector cap cost ranges• New vehicles must maintain existing levels of comfort and function and convenience

Result:• Added 4 cylinder models of existing selector vehicles• Added Saturn Aura, Vue and Chevy Malibu hybrids• Added CUVs as minivan alternatives (Vibe, HHR, Vue V4)

Define Parameters

Our approach was to model “good (40%), better (75%), best (100%)” green adoption rate profiles

Model the Scenarios

CO2 savings were higher than cost savings; Removing minivans was key to reducing CO2

Model the Scenarios

Purpose: to ensure drivers understand the impact the program will have on the environment and them

“Get them to buy into it”

1. Survey the drivers2. Test-drive the ‘greener’ vehicles and bring in an expert3. Distribute CO2 calculator to help them understand the

real impact of their choice4. Brand the program and celebrate to maximize awareness5. Share tips on driving behavior habits that conserve fuel

Build Communication Plan

Purpose: to measure attitudes and motivations

• 10-15% live self-described ‘green lifestyles’• 66% believe it is important to take action against global

warming in their own lives, as long as it is convenient (i.e. will make green choices if they don’t impact lifestyle)

• 65% would switch to greener vehicle if an incentive was offered

• 50% of minivan drivers would consider a CUV if an incentive was offered

Survey the Drivers

Purpose: dispel misconceptions and concerns

• brought in all of the new vehicles being considered for the green selector (hybrids, CUVs, 4-cylinder models)

• all day opportunity to test-drive the vehicles on city streetsand highways

• presentation plus Q&A with GM alternative fuels design engineer

Test Drive Vehicles

Purpose: “make it real”; show drivers exactly what impact their choice will have on the environment

Distribute CO2 Calculator

Purpose: “make it real”; show drivers exactly what impact their choice will have on the environment

Quantify the Impact

All of these activities contributed to the final structure of the program that was rolled out

• Maintained existing offering of V6, minivans and SUVs• Added V4 versions of sedans • Added 2 hybrid sedans and 1 SUV to 3 of 4 selector levels• Added minivan alternative CUVs to 2 of 4 selector levels• Offered financial incentive to drivers that chose ‘greener’vehicle (elimination of annual Personal Use Charge)

• Distributed branded electronic tire pressure gauge to celebrate success and keep program top-of-mind

Roll Out the Program

Program launched September 2007 – Year 1

• Greener vehicle adoption rate = 45%• Breakdown of green orders:

77% - CUV/minivan alternative14% - V4 sedan option9% - hybrid SUV

• Impact on the environment:8.3% reduction in CO2 and 2% reduction in cost (after incentive)44 metric tons of CO2 removed in 2008 and 172 metric tons by endof 2010 at current adoption rate, with current vehicle choices

The Result

Driver Reaction

“this is a great program and I am really proud to tell everyoneabout it”

“I think this new initiative is outstanding and is the right thingto do for the environment”

“it feels good to know that I am doing something to help theenvironment”

“it shows we are open to improving the way we do thingsand willing to embrace our values and contribute to ahealthier environment”

“it's good to know that we're working for a company that trulycares about its impact on society and the environment”

Measure The Results

A scorecard has been developed to track progress against our baseline and the annual target (TBD)

What’s Next?

How do we improve on our current performance?

Options being considered for 2008/2009:

• Expand OEM choices to include more hybrids, diesels and V4s (i.e. pick most fuel efficient vehicles in each class)

• Eliminate worst offenders from selector – minivans, SUVs

• Penalize drivers that don’t choose green vehicles (eg. increase personal use charge, purchase carbon offset)

• Replace selected vehicles sooner - “flexible replacement”

• Continue educating – over time, habits will change

Recap

Steps to Greening A Sales Fleet:

1. Gain internal support - corporate culture is a good indicator

2. Build a roadmap - start by calculating your baseline CO2

3. Create a framework that suits your organization - you must have clearly defined goals and one size does not fit all

4. Model different scenarios – there is no guaranteed outcome

5. Build a strong communication plan - buy-in is important

6. Set targets and measure the results – strive to improve

How to Green Your Fleet:A Simple and Practical Approach

to Reduce Vehicle Emissions

Sustainability In Action

• Global Warming (climate change)

• Reduce Dependency on Foreign Oil

• Reality

Why Even Reduce Emissions?

Reality• Increasing Federal, State, Local Pressure

• Federal – Clean Air Act www.epa.gov/air/caa

• State – Clean Air Act

• Local – City Councils, Citizens

• Cost of Fuel

Why Even Reduce Emissions?

• Establish emissions performance measures

• Business case analysis (Business 101)

• Educate prior to implementation (Sales 101)

• Options, options, options, options …

• Implement using best practices

Strategies

Establish Performance Measures

0

500

1,000

1,500

2,000

2,500

3,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2,357 tons (Peak)

1,672 tons (Baseline)

Emissions Reduction Projections (in tons of CO 2 )Goal: Reduce emissions 2% per year until 1990 baseline is achieved

1990

2000

2007 1,601 tons

Projections will be below baseline at the end of this year!

(conservative projection)

Establish Performance Measures

Fuel Consumption

Diesel Unleaded 2004 2005 2006 2007 2004 2005 2006 2007

January 9,318 7,862 8,462 10,335 January 9,602 9,037 9,060 8,874 February 7,873 7,128 7,890 8,377 February 8,417 7,885 8,630 7,925

March 9,869 8,739 9,111 9,356 March 10,109 9,698 9,701 9,017 April 9,563 8,684 8,707 8,935 April 10,032 9,313 9,116 8,624 May 8,985 9,563 9,472 10,396 May 9,681 9,555 9,709 8,806

June 9,742 9,857 9,472 10,829 June 10,606 9,948 9,734 8,726 July 9,647 9,139 8,776 11,050 July 10,242 9,952 9,689 9,106

August 9,680 10,278 10,579 11,468 August 10,245 10,343 9,960 8,912 September 9,339 9,394 9,302 9,959 September 9,841 9,370 8,902 8,133

October 9,190 8,862 9,936 October 9,284 9,745 9,440 November 9,180 8,703 9,445 November 8,524 8,384 8,387 December 8,721 8,630 8,920 December 8,695 8,713 7,517

Totals 111,107 106,839 110,072 90,705 Totals 115,278 111,943 109,845 78,123

Establish Performance Measures

Emissions Reduction

Diesel Unleaded 2004 2005 2006 2007 2004 2005 2006 2007

January 157,101 132,553 142,669 140,056 January 192,040 180,740 181,200 177,480 February 132,739 120,178 133,025 113,522 February 168,340 157,700 172,600 158,500

March 166,391 147,340 153,611 111,697 March 202,180 193,960 194,020 180,340 April 161,232 146,412 146,800 106,671 April 200,640 186,260 182,320 172,480 May 151,487 161,232 159,698 41,993 May 193,620 191,100 194,180 176,120

June 164,250 166,189 159,698 43,730 June 212,120 198,960 194,680 174,520 July 162,648 154,084 147,963 44,635 July 204,840 199,040 193,780 182,120

August 163,205 173,287 145,144 46,323 August 204,900 206,860 199,200 178,240 September 157,456 158,383 127,623 40,227 September 196,820 187,400 178,040 162,660

October 154,943 149,413 136,322 0 October 185,680 194,900 188,800 0 November 154,775 146,733 129,585 0 November 170,480 167,680 167,740 0 December 147,036 145,502 122,382 0 December 173,900 174,260 150,340 0

Totals 1,873,263 1,801,306 1,704,520 688,854 Totals 2,305,560 2,238,860 2,196,900 1,562,460 B20 B20 B20 B40 B40 B50 B99

Formulas• Gasoline - gallons *19.54 / 2000

• Diesel - gallons *22.2 / 2000

• B20 - gallons *17.89 / 2000

• B40 - gallons *15.4 / 2000source: www.eia.doe.gov (Energy Information Agency)

Establish Performance Measures

Biodiesel vs. Petroleum Diesel

• B20 costs $.22 more a gallon than regular diesel. $2,200 more for 10,000 gallons

• B20 reduces CO2 emissions 15.7%.

• 10,000 gallons of B20 reduces CO2 emissions by 32,242 lbs. (16 tons)

www.biodiesel.org (enter Emissions Calculator)

Business Case Analysis

Hybrid – Electric Vehicles

2001 Chevrolet Impala • purchase price - $21,931• 29,149 miles • 1,447 gallons / 20.2 mpg

2001 Toyota Prius• purchase price - $20,527• 29,427 miles• 612 gallons / 48.1 mpg Source: City of Olympia

Business Case Analysis

Neon vs. PriusSource: City of Seattle

Business Case Analysis

NeonLTD

Miles I/S CostLTD MTC LTD Fuel Proj. Sale 2008 Fuel (gal.)

CO2 (tons)

6 Vehicles 50,996 $12,981 $4,388 $10,357 $3,800 15,535 152

Total Cost $23,925

PriusLTD

Miles I/S CostLTD MTC LTD Fuel Proj. Sale 2008 Fuel (gal.)

CO2 (tons)

6 Vehicles 51,137 $21,362 $5,288 $5,321 $7,975 7,982 78

Total Cost $23,996

Fossil Fuel

Diesel Fuel

Combustion

Carbon Dioxide

Greenhouse Gas

Global Warming

Education Stage

Fossil Fuel

Diesel Fuel

Combustion

Carbon Dioxide

Greenhouse Gas

Global Warming

Education Stage

How Can a Gallon of Gasoline Produce 20 Pounds of CO²?

A gallon of gasoline weighs 6.3 lbs.Gasoline is 13% hydrogen and 87% carbon. They separate when gasoline burns.Hydrogen combines with oxygen to make water.Carbon combines with oxygen to make carbon dioxide.The weight of carbon in gasoline is 5.5 lbs. (6.3 x 87%).To calculate how much carbon dioxide is produced from a gallon of gasoline, multiply the weight of the carbon in gasoline bythe atomic weight of carbon dioxide (44/12 or 3.7).5.5 x 3.7 = 20 lbs. of carbon dioxide

http://www.fueleconomy.gov/feg/co2.shtml

Education Stage

Fossil Fuel

Diesel Fuel

Combustion

Carbon Dioxide

Greenhouse Gas

Global Warming

Education Stage

Education Stage

Admiral Hyman G. Rickover

Biodiesel• A renewable fuel source• Less carbon than petroleum diesel, a fossil fuel• B20 – 15.7% reduction in carbon dioxide• B40 – 31.4% reduction in carbon dioxide• B50 – 39.2% reduction in carbon dioxide• B99 – 77.7% reduction in carbon dioxide

Education Stage

Why Did I Tell You All This?

You must EDUCATE before you IMPLEMENT

Education Stage

Best Practices• Biodiesel is a solvent; therefore, it is a cleansing agent.• Clean your tank professionally prior to implementation.• Place your tanks on a preventive maintenance schedule.• ASTM D 6751 – know your supplier, expect certification.• Anti-algae additive - Biobor• Anti-gel additive – Artic Express (up to B20 blend).• Biodiesel pump filters (less micron than vehicle). • Spare pump and vehicle filters, watch older vehicles.• Educate and implement greatly increase chance of success.

Implement Stage

Cleaning Olympia’s AirBy Reducing Fuel and Emissions

Sustainability In Action

Mandated to adopt a strategy to reduce energy, fuel consumption, and greenhouse emissions by two percent per year until all cost-effective technology or strategy options are exhausted, or 1990 emissions levels are achieved.

City Council Resolution M-1550C

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1. Reduce fuel consumption

2. Reduce emissions

Our Approach

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Purchase hybrid vehiclesDownsize Olympia’s fleetShare equipmentModernize Olympia’s fleetDecentralize fuel budgets

Reduce Fuel ConsumptionC

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Purchase Hybrid Vehicles

Red

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Downsize Olympia’s FleetR

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Share Equipment

Red

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Fuel

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Modernize Olympia’s FleetR

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Decentralize Fuel Budgets

Red

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Fuel

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15,795 gallons less fuel consumed since 2000

315,900 pounds of CO² emissions eliminated since 2000

32,209 fewer miles driven (2006 vs 2000)

Using Less Fuel Works!

Power with biodiesel

Catalytic converter retrofits

Modernize equipment

Reduce Emissions

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B20 biodiesel and ULSD (January 2004)B40 biodiesel (August 2006)B50 biodiesel (March 2007)B99 biodiesel (May 2007)

Power With BiodieselR

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Converts:CO into CO2Hydrocarbons into CO2 and waterNitrogen oxides into nitrogen and oxygen

Catalytic Converter Retrofits

Red

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Modernize Olympia’s FleetR

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Reductions Achieved !

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1,000

1,500

2,000

2,500

3,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2,357 tons (Peak)

1,672 tons (Baseline)

Emissions Reduction Projections (in tons of CO 2)Goal: Reduce emissions 2% per year until 1990 baseline is achieved

1990

2000

2007 1,601 tons

Projections will be below baseline at the end of this year!

(conservative projection)

Tire Pressure Program

Wireless Vehicle Monitoring System

Anti-Idling Program

Green Fleets Policy

More ReductionsC

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Tire Pressure Program

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Wireless Vehicle Monitoring SystemW

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1.5

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Idle Time1-15 MPH16-30 MPH31-45 MPH46-60 MPH>60 MPH

Anti-Idling Program

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Idle vs. Drive Time

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Formalize our approach to continue our efforts…

Green Fleets PolicyW

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Downsize and optimize vehicle useMaximize vehicle efficiencyReduce the fleetPurchase electric-drive and LEV vehiclesUse alternative fuelsContinue employee education programMonitor the effectiveness of the policy

Elements of the Green Fleets Policy

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Questions or Comments?Sustainability in Action

Appendix

Pre-discovery exercise can help determine likelihood of success before starting the project

Appendix

Scenario Modeling - Lifecycle CO2 Analysis

Life Cycle CO2 savings range from 7% (139MT) to 24% (471MT)

Appendix

Scenario Modeling - Lifecycle Cost Analysis

Life Cycle cost savings range from 4.3% ($101k) to12.9% ($306k), before subtracting incentive value

Appendix

Carbon OffsetsOffsets are generated by projects that capture greenhouse gases which would otherwise be released into the atmosphere. Offsets are measured in metric tons of CO2 equivalent