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HomeMy WebLinkAboutMINUTES - 11031987 - S.2 TOS BOARD OF SUPERVISORS FROM: Supervisor Nancy Fanden Contra October 27, 1987 -for consideration Costa DATE: November 3 , 1987 County SUBJECT: COUNTY PARTICIPATION WITH STATE IN A PROGRAM FOR FUEL FLEXIBLE LIGHT-DUTY VEHICLES SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: That the County Administrator be directed by the Board to notify the California Energy Commission of our interest in their demonstration program that will focus on fuel flexible vehicles capable of operating on methanol and/or gasoline. That the Director of General Services send a staff person to the workshop session on Wednesday, November 4, 1987 at the Oakland State Building. That a report on this workshop be presented to the Board with a recommendation as to whether the County benefit from participation in this program. To ensure consideration, our letter of interest must be received by the Synthetic Fuels Office no later than November 10, 1987 . BACKGROUND: Development of this technology is important for two reasons. As I am sure you are aware, virtually all of California' s major urban areas will not meet federal air quality standards, by the December 31, 1987 deadline. In addition, the South Coast Air Quality Management District has recently been authorized to implement a clean fuels vehicle program which may require that commercial fleet operators purchase low polluting, clean fuel vehicles. Widespread use of methanol-fueled vehicles could provide significant improvements to our state' s .air quality. California' s transportation sector is 99 percent dependent on petroleum fuels . Current events in the Persian Gulf illustrate the vulnerability of our entire transportation system to fuel disruption. FFVs have the ability to switch off to gasoline instantly., This means that our fleet will not be crippled if gasoline' is restricted or not available. Attached is a copy of the Program Opportunity Notice explaining the program in greater detail. CONTINUED ON AITTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON November 3, 1987 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: County Admini.strator ATTESTED General Services Director Phil Batchelor, Clerk of the Board of Supervisors and County Administrator M382/7-83 BY DEPUTY STATE OF CALIFORNIA—THE RESOURCES AGENCY GEORGE DEUKMEJIAN, Governor CALIFORNIA ENERGY COMMISSION CHARLES R. IMBRECHT Chairman September 25, 1987 DECISION MAKERS Enclosed is a Program Opportunity Notice announcing an upcoming demonstration program for fuel flexible light-duty vehicles. Fuel Flexible Vehicles (FFVs) are on the cutting edge of light- duty vehicle technology. Fuel flexible vehicles are capable of operating on alcohol or gasoline, or any combination of the two. Virtually all major vehicle manufacturers throughout the world are developing fuel flexible vehicles. Ford and General Motors currently lead the world in this technology. The California Energy Commission' s (CEC) demonstration program will focus on fuel flexible vehicles capable of operating on methanol and/or gasoline. The CEC has entered into partnerships with ARCO and Chevron to establish an additional 50 methanol fueling stations throughout California by the end of 1988 . Development of this technology is important for two reasons. As I am sure you are aware, virtually all of California' s major urban areas will not meet federal air quality standards by the December 31, 1987 deadline. In addition, the South Coast Air Quality Management District has recently been authorized to implement a clean fuels vehicle program which may require that commercial fleet operators purchase low polluting, clean fuel vehicles. Widespread use of methanol-fueled vehicles could provide significant improvements to our state' s air quality. California's transportation sector is 99 percent dependent on petroleum fuels. Current events in the Persian Gulf illustrate the vulnerability of our entire transportation system to fuel disruption. FFVs have the ability to switch off of gasoline instantly. This means that your fleet will not be crippled if gasoline is restricted or not available. I urge you to strongly consider entering into a partnership with the state by participating in a demonstration of FFVs. The enclosed Program Opportunity Notice explains the program. In addition, workshops have been scheduled throughout the state to further answer your questions and explain the program. You may also contact Kevin Chorn in our Synthetic Fuels at (916) 324-3545 for additional information. incer , CHARLES R. IMBRECHT Chairman Enclosure 1516 9th Street, Sacramento, CA 95814 (916) 324-3326 STATE OF.CALIFORNIA—THE RESOURCES AGENCY GEORGE DEUKMEJIAN, Governor CALIFORNIA ENERGY COMMISSION .. 1516 NINTH STREET I SACRAMENTO, CA 95814 September 25, 1987 b ` METHANOL LIGHT-DUTY FLEXIBLE FUEL VEHICLE DEMONSTRATION PROGRAM OPPORTUNITY NOTICE INTRODUCTION Senate Bill 1147 , authored by Senator Robert Presley, was signed into law by Governor George Deukmejian in 1986 . This legislation requires the California Energy Commission (CEC) to use $2 . 5 million from the Petroleum Violation Escrow Account (PVEA) to promote continued development of methanol-powered light-duty vehicles incorporating fuel flexible vehicle (FFV) technology. PVEA funds are given to the state by the U. S. Department of Energy (DOE) and are the result of a federal regulatory action against Exxon, Inc. for illegal pricing actions. In July 1987 , the DOE approved the Energy Commission' s proposal to use those funds to expand California ' s existing network of methanol fuel stations and undertake a large-scale demonstration of fuel flexible vehicles. The CEC is seeking light-duty vehicle fleet operators and rideshare programs to participate in the early market introduction of fuel flexible vehicle technology. FFVs are capable of operating on fuel methanol (M85--85 percent methanol and 15 percent unleaded gasoline) , unleaded gasoline, or any combination of the two fuels using a single fuel tank. These vehicles, which automatically adjust to the fuel mixture in the tank, are not restricted to limited geographic areas of operation. They are capable of operating efficiently on fuel methanol in areas where the fuel is readily available, thereby realizing the performance advantage and emissions reduction benefits inherent in methanol-fueled vehicles. When travelling to areas where methanol is unavailable, vehicle operators can use unleaded gasoline. WORKSHOP INFORMATION The Energy Commission is conducting a series of informal public workshops to discuss the fuel security and air quality benefits provided by FFV technology. The workshops will be held throughout the state to provide ample opportunity for interested fleet operators to ask questions about the program. A complete schedule of workshop dates and locations is attached. 1 Widespread use of fuel methanol in light-duty motor vehicles has the potential to significantly reduce the amount of ozone produced by mobile emission sources in California 's urban areas. FFVs operating on M85 can reduce the potential for ozone formation by as much as 50 percent compared to gasoline-powered vehicles, while producing 5 to 7 percent more power on methanol. This widespread use of methanol fuel for transportation will provide significant improvements to our state's air quality. In addition, the South Coast Air Quality Management District (SCAQMD) was recently authorized to implement a clean fuels vehicle program which may require commercial fleet operators in the Los Angeles Basin to purchase low emission clean fuel vehicles. HISTORY California's transportation sector is 99 percent dependent on petroleum fuels, consuming 74 percent of the state' s annual petroleum supply. This makes our transportation sector particularly vulnerable to any disruption of our petroleum supply. In the event of another oil embargo, such as those experienced- in 1974 and 1979 , fuel flexible vehicles could operate exclusively on methanol. Methanol can be produced from domestic resources such as coal and natural gas. The State and ARCO Petroleum Products Company recently announced a public/private partnership agreement which will provide an additional 25 methanol fueling facilities in the Los Angeles Basin by December 31, 1988 . Five .of those stations are scheduled to begin operation by December 31, 1987 , with the other 20 to open in 1988. A similar agreement is presently being negotiated with Chevron USA which would provide another 25 methanol refueling facilities at Chevron stations throughout California. Chevron will also participate directly in FFV research as well as economic and safety studies of fuel methanol. In April 1987 , the Methanol Task Force (composed of representatives of the Energy Commission, the California Air Resources Board and the South Coast Air Quality Management District) held a light-duty methanol vehicle workshop for .vehicle manufacturers and other interested parties. At that meeting, the.- state' s plan to conduct a FFV demonstration of up to 5, 000 vehicles was discussed at length. Since April, two major American motor vehicle manufacturers have indicated interest in producing fuel flexible vehicles for the demonstration program if they can be assured a large-volume order. Other American and foreign manufacturers have also expressed interest in participating. The CEC is also working with representatives from the executive branch of the federal government to combine their proposed 2 purchase of 5, 000 FFVs with the order for the state's demonstration program. A combined purchase, in conjunction with proposed incentives to the manufacturers providing Corporate Average Fuel Economy (CAFE) credits currently pending in the U.S. Congress, could help provide FFVs at attractive prices. The Energy Commission will issue an. "Invitation for Bid" (IFB) to vehicle manufacturers under the state' s Cooperative Purchase Agreement procedure. This procedure will facilitate a group purchase with the state acting as purchasing agent. The state will require that the FFVs be covered by a manufacturer' s new vehicle warranty comparable to warranties covering conventional gasoline-powered vehicles. HOW TO PARTICIPATE To provide vehicle manufacturers with specific information about future FFV purchases, the CEC is conducting a survey of fleet operators in conjunction with this announcement. The survey is intended to show the types of vehicles in fleet service as well as show which types of vehicles fleet operators are interested in acquiring FFVs. The results of this survey will permit the state and federal governments to engage in meaningful negotiations with vehicle manufacturers by identifying the number and types of vehicles that are in demand. Combined orders will assure fleet operators that FFVs will be available at the lowest possible cost to all participants in the program. It is extremely important that the questionnaires be returned in order to provide accurate information for these negotiations. In addition to providing participating fleet operators with the economic advantage of combined purchasing power, the CEC is actively engaged in expanding the existing fuel distribution network through the aforementioned agreements with ARCO and Chevron. Early identification of interested fleets can help facilitate the selection of convenient fuel station locations, leading to a mutually beneficial, successful large-scale demonstration. The CEC will provide ongoing technical assistance to participating fleets for the duration of the program. By assisting in the early market introduction of these fuel flexible vehicles, your organization has the opportunity to create a positive public image. You will be taking positive action to improve your community's air quality while showing the Environmental Protection Agency that the public and private fleet operators in California are concerned about cleaning up our air. 3 Interested parties are urged to complete the attached questionnaire and return it to: Kevin Chorn Synthetic Fuels Office 1516 Ninth Street, MS #41 Sacramento, CA 95814 (916) 324-3545. To ensure consideration of your organization, replies must be received by November 10, 1987. In addition to the brief questionnaire, please provide a cover, letter describing your interest in participating in the demonstration. I 4 CALIFORNIA ENERGY COMMISSION / SYNTHETIC FUELS OFFICE METHANOL LIGHT-DUTY FLEXIBLE FUEL VEHICLE PROGRAM FLEET OPERATOR SURVEY Survey Date: I FLEET OPERATOR INFORMATION Fleet Name: Contact Person: Title: Mailing Address: I Phone Number: EXISTING FLEET MAKEUP How many of each of the following types of vehicles are presently operating in your fleet? Passenger Cars: Full-size Sedans: Mid-size Sedans: Compact/Subcompact Sedans: Total Passenger Cars: How many are Police Patrol/Pursuit vehicles? How many are other Emergency Service vehicles? Light-duty Trucks: Full-size Pickups: Full-size Vans: Cab & Chassis: Mini Pickups: Mini Vans: Total Light-duty Trucks: 5 FUTURE VEHICLE ACQUISITIONS How many new light-duty vehicles do you plan to purchase in your next acquisition? Passenger Cars: Light-duty Trucks: When do you plan to purchase these vehicles (month/year) ? Passenger Cars: Light-duty Trucks: How many vehicles of each type will you purchase? Passenger Cars: Full-size Sedans: Mid-size Sedans: Compact/Subcompact Sedans: iTotal Passenger Cars: How many are Police Patrol/Pursuit vehicles? How many are other Emergency Service vehicles? Light-duty Trucks: Full-size Pickups: Full-size Vans: Cab & Chassis: Mini Pickups: Mini Vans: Total Light-duty Trucks: VEHICLE ACQUISITION & OPERATING COSTS Please rank the relative importance of the following five categories with respect to your fleet vehicle purchase decisions. (1 through 5; 1 = Most Important, 5 = Least Important) Vehicle Acquisition Cost: Vehicle operation Cost: Vehicle Resale Value: Vehicle Lifecycle Cost: Vehicle Size/Utility: 6 Would you consider purchasing methanol-powered Fuel Flexible Vehicles (FFVs) through the State of California ' s Cooperative Purchase Agreement or, in the case of privately owned/operated fleets, at the same cost as that offered to government fleets participating in this program? YES / NO i How much more are you willing to pay per vehicle, beyond the cost of a comparable gasoline-powered vehicle, to obtain Fuel Flexible Vehicle (FFV) capability? $ 100 Per Vehicle YES NO $ 500 Per Vehicle YES / NO $1, 000 Per Vehicle YES / NO $1, 500 Per Vehicle YES / NO What additional operating cost, beyond that of a comparable gasoline-powered vehicle, are you willing to pay for Fuel Flexible Vehicle (FFV) capability? (Additional operating costs for dedicated methanol vehicles currently participating in the CEC!'s Methanol Fleet Demonstration Program average approximately $0. 03 per mile. ) $0. 01 Per Mile YES j NO $0. 02 Per Mile YES / NO $0. 03 Per Mile YES / NO $0. 04 Per Mile YES J NO $0. 05 Per Mile YES / NO Would you be more willing to pay higher vehicle acquisition/operation costs if vehicle manufacturers provide additional new vehicle warranty coverage for Fuel Flexible Vehicles (FFVs) beyond that which is typically available on conventional gasoline-powered vehicles? YES / NO 7 WORKSHOP SCHEDULE SACRAMENTO California Energy Commission Thursday, October 15, 1987 Hearing Room B Heavy-Duty 1516 - 9th Street 10: 00 - 12 : 00 pm Sacramento Light-Duty 1: 30 - 3 : 30 pm RIVERSIDE County Administrative Center Friday, October 16, 1987 County Supervisors Board Room Light-Duty 4080 Lemon Street i0.: 00 am - 12 : 00 pm Riverside Heavy-Duty 1. 30 - 3 : 30 pm BAKERSFIELD North of the River Monday, October 19 , 1987 Veterans Hall, Room 1 Light-/Heavy-Duty 400 West Norris Road 1: 30 - 4 : 00 pm Bakersfield SAN FRANCISCO City Library Thursday, October 22, 1987 Commissioners Room, 3rd Flr. Light -/Heavy-Duty Civic Center 11: 00 am - 2 : 00 pm San Francisco SAN DIEGO San Diego County Operations Friday, October 23 , 1987 Center Light-Duty Social Services Training Rm. 10: 00 am - 12 : 00 pm 5201 Ruffin Road, Suite G Heavy-Duty (at Clairemont Mesa Blvd. ) 1: 30 - 3 : 30 pm San Diego. LOS ANGELES South Coast Air Quality Monday, October 26, 1987 Management District Light-Duty Board Room 10: 00 am - 12 : 00 pm 9150 Flair Drive Heavy-Duty E1 Monte 1: 30 - 3 : 30 pm SANTA ANA City Council Chambers Tuesday, October 27 , 1987 22 Civic Center Plaza Light-Duty Santa Ana 10: 00 am - 12 : 00 pm Heavy-Duty 1: 30 - 3 : 30 pm SANTA CLARA City Council Chambers Friday, October 30, 1987 Light-/Heavy-Duty 1500 Warburton Avenue 10: 00 am - 12 : 00 pm Santa Clara MONTEREY Seaside Branch Library Friday, October 30, 1987 Meeting Room Light-/Heavy-Duty 550 Harcourt Avenue 2 : 00 - 4 : 00 pm off Del Rey Canyon (Del Rey Oaks) Seaside VENTURA Ventura County Administration Monday, November 2 , 1987 Building Light-/Heavy-Duty 10: 00 am - 12 : 00 pm Lower Plaza Assembly Room 800 South Victoria Avenue Ventura SANTA BARBARA Santa Barbara County Monday, November 2 , 1987 Courthouse - Mural Room Light-/Heavy-Duty 1100 Anacapa Street 2 : 00 - 4 : 00 pm Santa Barbara OAKLAND Oakland State Building Wednesday, November 4 , 1987 Assembly Room, 1st Floor Light-/Heavy-Duty 1111 Jackson Street 10: 00 am - 12 : 00 pm Oakland FRESNO Fresno County Free Library Thursday, November 5, 1987 Sarah McCardle Room Light-/Heavy-Duty 2420 Mariposa Street 1: 00 - 3 :00 pm Fresno I Workshop locations are accessible to the handicapped. Maps of workshop locations are available by calling Kevin Chorn, Synthetic Fuels Office, California Energy Commission, (916) 324-3545.