1. Green Fleet Workshop King County’s Hybrid Electric Fleet Program Windell T. Mitchell, Director King County Fleet Administration Division Hosted by the Responsible Purchasing Network www.responsiblepurchasing.org March 29, 2007

2. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 2 Overview of Presentation Personal background Overview of King County King County’s Commitment to Clean Air King County’s Hybrid Electric Program King County’s Best Practices Comparison of HEV and Conventional Vehicles King County HEV Quality Survey The Supply of HEVs Conclusions

3. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 3 Personal Background 30 years fleet management experience Received MBA, University of Washington Served 13 years NAFA Board of Governors and 10 years NAFA Board of Trustees – served as Treasurer, Western Regional Trustee and Vice- President Received several awards: –Business Week Magazine and NAFA Award for Quality Fleet Management Ideas and Practices –Larry Goill and NAFA Award for Regional Partnership –Clean Air Recognition Award from the American Lung Association –National Association of Counties Award for Efficiency in Fleet Management –Blue Seal of Excellence award from the National Institute for Automotive Service Excellence Recognized among the top ten fleets in North America – Utility Fleet Magazine 2006 Certified to perform warranty repair by Ford, General Motors, Daimler- Chrysler, and others.

4. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 4 Overview of King County Population = 1.8 million Land Area = 2,134 square miles 15,000 employees 1,500 bus fleet including 237 hybrid electric buses and 159 electric trolleys 3,000 diverse fleet of vehicles and equipment 140 hybrid electric vehicles including 3 heavy duty hybrid electric trucks 75 flex fuel vehicles

5. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 5 King County’s Commitment To Clean Air 1991 policy mandated that 50% of vehicle purchase must operate on alternative fuels 1991-- Began Alternative Fuels Program 1995 – Largest fleet of police vehicles operating on CNG in North America King County Alternative Fuels Program Used by US Department of Energy as National Model 2001 – Began purchasing light duty hybrid electric vehicles 2002 – King County purchased 237 hybrid electric buses 2006 – King County joined the Chicago Climate Exchange 2006 – King County mandated that by 2012 50% of fuel consumed must come from renewable resources or efficiencies 140 light duty hybrid electric vehicles and 75 flex-fuel vehicles Largest consumer of bio-diesel in the State of Washington – about 2 million gallons used in 2006 2007 -- Will take delivery of the first 3 heavy duty hybrid electric trucks Made public commitment to purchase 400 plug-in vehicles September, 2007 will host one of the largest clean vehicle conference

6. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 6 King County’s Hybrid Electric Program Why an HEV Program? Started in 2001 in support of King County’s commitment to the environment No infrastructure costs Higher mileage range Lower maintenance cost Anticipated higher re-sale price High user acceptance Potential for lower life-cycle cost Reduced dependency on foreign fuel Reduced greenhouse gas emission

7. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 7 King County’s Hybrid Electric Program Benefits: Reduces fossil fuel consumption Reduces fuel cost up to 70% Reduces carbon emission up to 70% Eliminates fuel loss from idling Lowers maintenance costs due to extended maintenance interval Significant contributor to meeting King County Energy Plan and CCX target. Potential for reducing vehicle lifecycle cost Enhances public image of King County Establishes King County as a leader and a first responder in addressing the issue of global warming

8. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 8 King County’s Hybrid Electric Program King County’s Experience: HEVs are reliable - very few incidences of malfunction Increase fuel efficiency up to 70% over similar conventional size of vehicle High user satisfaction rating of 4.6 out of maximum rating of 5 Projected HEV salvage value is 20% of the purchase price compared to the actual salvage value of 12% received on similar conventional vehicle HEV is the vehicle of choice of KC users Purchase of HEV is more attractive when the price of fuel is high

9. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 9 King County’s Hybrid Electric Program King County Experience: cont’d Older model Prius not used for 3-4 days may experience difficulty in starting due to drain on ignition starting battery Projected Maintenance cost for Prius is 13% lower than similar size conventional vehicle Projected lifecycle maintenance cost of the Escape is 25% lower than similar size conventional vehicle User expressed higher level of satisfaction with the Ford Escape than the Toyota Prius primarily due to more conventional and user friendly configuration Toyota allows only dealerships to perform warranty work on the Prius Ford allows King County to perform warranty work on the Ford Escape Shorter turnaround time experience performing warranty work on the Escape than the Prius

10. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 10 King County’s Best Practices Provide ASE Certification training for all technicians Provide Manufacturer Technician Training on the safety features of working around the hybrid electric high voltage system Purchase and have readily available rescue equipment as recommended by manufacturers in the event of an accident Extend HEV preventive maintenance service intervals thereby reducing maintenance costs Provide driver orientation on the features and operation of hybrid electric vehicles

11. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 11 Life Cycle Comparison – Midsize vs. Prius King County Experience Conv. MidsizePriusDifference Initial Purchase Price $15,410$20,037$(4,627) Projected Residual Value @ 100,000 miles $(1,849)$(4,007)$2,158 Net Purchase Price $13,561$16,030$(2,469) Fuel Miles Per Gallon 2342(19) Est. Fuel Cost @ 3.00/Gallon $11,297$6,456$4,841 Est. Maintenance & Repair Cost $5,694$4,790$ 904 Projected Cost of Ownership $30,552$27,276$3,276

12. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 12 Life Cycle Comparison – SUV vs. Escape King County Experience Conv. SUVEscapeDifference Initial Purchase Price $21,704$26,917$(5,213) Projected Residual Value @ 100,000 miles $(2,604)$(4,341)$1,737 Net Purchase Price $19,100$22,576$(3,476) Fuel Miles Per Gallon 16.727.7(11) Est. Fuel Cost @ 3.00/Gallon $12,551$7,567$4,984 Est. Maintenance & Repair Cost $7,400$5,500$1,900 Projected Cost of Ownership $39,051$35,643$3,408

13. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 13 What King County Drivers Say About Quality of HEV…

14. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 14 The Supply of HEVs Acquire HEVs from both state and county contracts Availability of hybrid electric vehicles is limited to certain makes and models – supply is adequate Unleaded fuel is readily available Parts and supplies are readily available, accessible and at competitive prices Vendor support is excellent Vendor training is available

15. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 15 Conclusions Summary: KC hybrid electric Program King County began implementing its hybrid electric program in 2001 HEV supports the County’s environmental corporate goal Life cycle analysis on HEVs indicates that this program does not cost the county more over the lifecycle of the vehicle HEVs are good for the environment Overall performance of HEVs has met manufacturers’ claims and the County’s expectations

16. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 16 Conclusions Successes: HEVs have generated strong user support HEVs’ introduction in the fleet was seamless HEVs’ performance is reliable HEVs use less fuel HEVs emit up to 70% less CO2 HEV Program positioned King County as a national leader and first adopter of climate change mitigation technology HEV use has made King County a repository of information in the use of hybrid electric technology

17. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 17 Conclusions Challenges: HEV availability is limited to certain makes and models HEV prices are higher than conventional vehicles HEVs from Toyota result in higher cost and longer turnaround time from ferrying vehicles to dealerships for warranty repairs HEV technology is new, therefore there exists a lack of historical data HEV training for technicians is not always available on site HEV’s high voltage technology may pose a danger in case of accident Convince Toyota to allow in-house warranty repair

18. www.ResponsiblePurchasing.orgRPN Green Fleet Workshop Series 18 Conclusions Next Steps : Increase the number and diversity of hybrid electric fleet Expand hybrid electric fleet to include heavy duty trucks Seek grant funding to offset the incremental higher cost of heavy-duty hybrid electric vehicles Use the Responsible Purchasing Network Guide to develop a strategic plan for mitigating global warming Use the Responsible Purchasing Network as a resource to select fuels that minimize greenhouse gas emission Publish King County’s success with HEVs

19. Green Fleet Workshop King County’s Hybrid Electric Fleet Program Windell T. Mitchell, Director King County Fleet Administration Division Hosted by the Responsible Purchasing Network www.responsiblepurchasing.org March 29, 2007