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Biodiesel Use and Fuel Conservation in Fleet Operations.

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1 Biodiesel Use and Fuel Conservation in Fleet Operations

2 What is Biodiesel ? -Biodiesel, the trade name for methyl esters, can run in any diesel engine with little or no modification. Biodiesel burns much cleaner than petrol-diesel, it's biodegradable and non-toxic, made from vegetable crops, waste oil, and a growing list of sustainable sources. It is also "carbon-neutral," meaning that it puts no more carbon dioxide into the atmosphere than was absorbed by the plants from which it is made. Depends. -Biodiesel, the trade name for methyl esters, can run in any diesel engine with little or no modification. Biodiesel burns much cleaner than petrol-diesel, it's biodegradable and non-toxic, made from vegetable crops, waste oil, and a growing list of sustainable sources. It is also "carbon-neutral," meaning that it puts no more carbon dioxide into the atmosphere than was absorbed by the plants from which it is made. Depends. -Rudolf Diesel ran first diesel engine on peanut oil. Cheaper petroleum ended vegetable oil use. -Rudolf Diesel ran first diesel engine on peanut oil. Cheaper petroleum ended vegetable oil use.

3 What is Biodiesel  Biodiesel offers economic, environmental, fuel quality and energy security benefits vs. petroleum-based diesel.  Soybean oil is by far the leading feedstock for biodiesel production in the US. Other sources include canola oil (rape seed), corn oil, and used cooking oils and fats.  Natural oils are converted to biodiesel by a relatively simple refining process called transesterification.  B100, B20, B5 etc refers to percent of Biodiesel in Diesel Fuel  Lubricity is “slipperiness of fuel or lubricants

4 Biodiesel Rapid Growth  According to the Biodiesel 2020 market study, the growth in the U.S. has been staggering "biodiesel consumption in the U.S. grew from 25 million gallons per year in 2004 to 78 million gallons in 2005," and the number of retail stations tripled during that time.  To meet this spike in demand, 50 new biodiesel plants are expected to come online in the U.S. alone between 2007 and With this growing demand and competition in the market, new manufacturing technologies are sprouting, and we can expect to see more biodiesel being brewed from algae cultures, more efficient crops, animal fats, and all sorts of waste grease.

5 Biodiesel Growth Since 2000 (2008 Projected Capacity) Yr Yr Yr Yr Yr Yr Yr Yr Yr

6 Oneonta Biodiesel History  Concerns of smell and pollution of OPT trolley prompt my investigation into Biodiesel. (Vegetable/ plant based diesel fuel)  Contacted Jim Doi, sales engineer for Mirabito. Jim is unaware of Biodiesel, investigates and supplies us with 55 gallon drum of B100 (100% Biodiesel )  B100 mixed at Central Garage with regular diesel fuel. Smell and smoke problem abate somewhat with no performance problems.

7 Oneonta Biodiesel History  Continued research into Biofuels. When in San Francisco for Gillig bus purchase, visited San Francisco Fire Department maintenance section. San Francisco Fire Department testing and hope to move to biodiesel for entire fleet. When in San Francisco for Gillig bus purchase, visited San Francisco Fire Department maintenance section. San Francisco Fire Department testing and hope to move to biodiesel for entire fleet.

8 Oneonta Biodiesel History  Research continues. Attend seminars.  Additional meetings with Mirabito.  Presentation to OSCD.  Second round bus purchases. Revisit SFFD. They have no operational biodiesel problems.

9 Oneonta Biodiesel History  At budget discussion, spoke of using Biofuels-operational and financial impacts. Talks with Mirabito continue.  Hurricane Katrina disables refineries causing diesel shortage. Cincinnati Area Transit uses B100 for entire fleet to get through crisis.  Research continues. National spec’s developed to insure quality biodiesel fuel. ULSD fuel on horizon.  Oneonta fleet surveyed for non-compliant rubber fuel hosing, seals. Profile for acceptable use set for Oneonta. Only post 1998 vehicles and vehicle that “turn” a tank every three months.

10 Oneonta Biodiesel History – Purchasing agent includes spec’s in annual joint OSCD, County, City of Oneonta fuel bid with Biodiesel option for July 1, Mirabito installs Biodiesel tanks on Carbon Street. –SFFD 100% Biodiesel –Fire Department first department 100% Biodiesel in July No operational effects. Other departments come slowly online. –Winter 2006 best ever in terms of fuel problems. Zero. Why? Good spec’s. Close monitoring.

11 Oneonta Biodiesel History  Continued growth in Biodiesel use by departments. No operational issues.  Some nay-sayers: “ tree hugger” ideas  March price of Bio less than regular diesel.  OPT goes 100% Biodiesel in December On target for 100,000 gal/yr  Winter 2007 no winter fuel problems.  Premium price for biodiesel grows.

12 Current Status  Market crash leads to speculation in futures markets  Biodiesel price soars  Government impacts worse (no taxes on fuel versus private fleet that get tax credits for Biodiesel)  Considering switch to B5

13 Biodiesel Concerns  Standards- next slide  Fuel Gelling- make sure winter mix is adequate (mixed with kerosene or anti-gels) All diesel is subject to gelling at cold temperatures.  Fuel filter clogging. Biodiesel cleans out lines and tanks. You may have to change some filters. We did one out of regular routine.  Deteriorates rubber lines and seals. We found all post 1998 equipment ok.  Lack of power. Loss of 2-3% made up by better oxygenation and fuel density.  Buy-in. Many anecdotal myths. Ask what are the big guys doing. Thruway didn’t tell employees and ran for a year without problems. “Lack of power” stories surface after disclosure.

14 Biodiesel Standards  The Biodiesel Standard (ASTM D 6751) All engines are designed and manufactured for a fuel that has certain characteristics. In the US, the industry organizations’ consensus on fuels is the American Society for Testing and Materials (ASTM). In the case of diesel fuel (and biodiesel), the responsibility lies within ASTM Committee D02 on Petroleum Products and Lubricants. To assure that the standards are rigorous and robust, ASTM committee D02 is comprised of fuel producers, engine equipment manufacturers, and others. ASTM uses ballot process in which a single negative vote is enough to defeat a ballot.. Some standards can take over 10 years to gain agreement. This rigorous, time-consuming process is why ASTM standards are recognized worldwide.  For diesel fuel, the ASTM standard is ASTM D 975. All engine and fuel injection manufacturers design their engines around ASTM D 975.  It is critical that fuel specification meet these standards and supplier is monitored for compliance. ISO 9000 companies are preferred.

15 The Biofuels factor in rising food  What's causing the global rise in food prices ?  Everything.  “Those who say it's all the fault of Biofuels are wrong and those that say that none of the fault belongs to Biofuels are wrong. There is no doubt Biofuels have added to the problem, but Biofuels are not causing the demand for meat and soybeans for feed in China...There are a half a dozen things going on and it's hard to sort out who gets the blame.”  Walter Falcon, a professor emeritus of international agricultural policy at Stanford University and co-director of Stanford's Center for Environmental Sciences and Policy. Walter Falcon Walter Falcon

16  Continued growth in Biodiesel use by departments. No operational issues.  March price of Bio less than regular diesel.  OPT goes 100% Biodiesel in December  Winter 2007 no winter fuel problems.  Premium price for biodiesel grows.

17  Corn is probably the commodity most directly impacted by Biofuels. An estimated 25 to 30 percent of the U.S. corn crop goes to ethanol. “That amount of demand has come out of nowhere. Three years ago, the amount of corn used for ethanol was rather small and no one predicted this."  Ken Cassman, a professor of agronomy and horticulture at the University of Nebraska-Lincoln. Ken CassmanKen Cassman  Worldwide, ethanol accounts for around 5 percent of grain production, according to statistics from the Earth Policy Institute. Earth Policy InstituteEarth Policy Institute  "The spike in corn prices began with the Energy Security Act of 2005, which increased the goal for ethanol use in the U.S., and Hurricane Katrina. Replacing the gas additive MTBE also contributed.

18 Crop land usage  This chart shows domestic corn consumption and use. It's going up faster than available cropland.

19 OTHER FACTORS PUSHING HIGHER FOOD PRICES: *Increasing meat consumption in China and India has driven up the price of feed. *It takes 4 pounds or more of feed protein to produce one pound of animal protein *Increased demand for milk and cheese - cows need feed to provide dairy. *In 2007, farmers shifted millions of acres of soybeans over to corn production causing soy prices to rise which has contributed to the rise in meat prices because soy is a feedstock. *Soy is major source of protein and vegetable oil in Asia and elsewhere. Diminished soy supplies increase both food and Biofuels costs. *Oil at over $100 a barrel pushes cost of production in farming and fertilizers.

20 Alternatives for the future More productive seed oils- rapeseed, controlled Japura plantings More intensive waste oil conversion Cellulosic ethanolCellulosic ethanol, produced from wood chips, waste, plant and crop fiber, switchgrass and other biomass Cellulosic ethanol Algae biodiesel Methane and LNG biodiesels

21 Example of Positive Impact of One Company’s Implementation of Idle- Reduction Policy

22 Sample Company Engine Idling of Fleet What is the effect of engine idling on fuel consumption?

23 Engine Idling One company truck on an annual basis  The truck used 5,142 gallons of fuel in a year  It idled for 35% of the time  Fuel mileage is reduced by 5%  493 gallons of diesel fuel are being consumed during idling in a year.

24 Engine Idling Actual company truck one week in a given month  The truck traveled 1,117 miles  It idled for 18% of the time  Daily idling time was 1 hour 58 minutes  Daily idling fuel consumed is one gallon  Fuel mileage is reduced by 2.4%

25 Engine Idling Where does idling occur?  Pre-trip –Idle only until the engine is at operating temperature.  While making deliveries –The truck must be shut off at each stop. Many stores require that you do.  Waiting in traffic –We have no control over this occurrence.  Waiting in the truck –Each Driver should use their own judgment about how long to run the engine.

26 Engine Idling Eighteen states have adopted idle-reduction rules  New York – Limit 5 minutes – fine of $375 to $15,000 –Exemption – if motionless for two hours and temp is below 25° F.  New Hampshire – Limit 5 minutes – fine TBD –Exemption – 15 minutes if temp between 32 and -10° F  Connecticut – Limit 3 minutes – fine up to $5,000 –Exemption – temp less than 20° F  New Jersey – Limit 3 minutes – fine $10,000 to $50,000

27 Engine Idling Company Fleet Idling average for one year  22.71% per truck .45 gal per hour  455 hours per year / truck  gallons consumed / truck

28 Engine Idling  5, gallons –Fuel consumed by the fleet during idling  115, lbs of CO 2 produced –Adding to company’s greenhouse gas emissions  $ 14, ( $2.85/gal ) –To purchase fuel used for idling alone

29 Engine Idling Reduction Challenge  The Challenge –Reduce the amount of time that our trucks idle by 20% hours. –Reduce fuel consumption – use fewer gallons –Save $3-8,000 or more by being more efficient

30 Engine Idling Reduction Challenge  The Outcome –Decreases Operating Costs –Reduces our impact on the environment by reducing greenhouse gas emissions –Enhances our City’s Social Responsibility reputation –Taxpayers see City as proactive in dealing the environment – A healthier work environment

31 What can influence fuel economy?  Climate/Fuel-not much  Aerodynamics-utiity fleets - not much  Gearing- very low engine rpm while at cruise speed  Tires –Regular tire pressure checks -20% underinflated tires can cost 10% fuel reduction  Driving Speed – 1/10 gal per each MPH over 55  Idle Time- ½ to – 1 ½ gal per hr

32 # 1 Component in Saving Fuel - Driving Technique  The industry has found that the most significant variable to fuel economy is the driver. The driver controls vehicle speed, shifting techniques, idle time, acceleration, brake usage, safety practices and more. Studies have shown that identically spec’d trucks to see as much as a 35 percent fuel economy difference between trucks-a difference that is solely due to variances in skills, practices and attitudes of the drivers.  While engine electronics can provide some necessary tools to help improve fuel mileage, the most important tool is driver training. No matter how the truck is spec'd or how the customer parameters are set, the one thing that is consistent in trucks getting good fuel economy is a driver with a good attitude and good understanding of proper and safe driving techniques.  Safe Drivers are fuel efficient drivers Jim Booth Jr., field service coordinator, Caterpillar Global On-Highway,

33 Green Road TM clients have  Reduced overall accidents by 54%  Reduced at-fault accidents by 42%  Reduced high risk driving behavior by 50%  Decreased fleet fuel costs and CO² emissions by 7%


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