Case Studies in Green Fleet Management September 17, 2009 Facilitator: Carol Boutin Program Manager

Workshop Agenda 8:30Introduction / Trends in green fleet mgmt 9:00Terry Robert, Fraser Basin Council 9:30Case study review 10:00Coffee 10:15Doug Smith, City of Vancouver 10:45Fleet sustainability best practice 11:00Melody Bennett, King County, WA 11:45Recap discussion, evaluation, wrap-up

About the BuySmart Network  The primary source of information and education on sustainability purchasing and green supply chains in Canada  Our goal: To build a movement and lead the adoption of environmental, social, and ethical supply chain best practices in business and government –Engage senior decision-makers to link supply chain with sustainability goals and drive this mandate –Connect people and organizations to share stories of supply chain transformation

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What is sustainability purchasing? Buying supplies by taking into account: Price, Quality, Availability Functionality Life Cycle environmental aspects Social and ethical aspects

Why it’s important Sustainability purchasing can minimize negative social and environmental impacts associated with what we buy.

Sustainability purchasing vision When buying and ordering, staff regularly thinks about:  What the products are made of  Where the products come from  Who has made the products  How the products will be disposed of  Whether the purchase needs to be made at all

Sustainability Purchasing in Fleet Management Seeks to manage and acquire vehicles and fuels in a way that aims to reduce vehicle use, reduce fuel use, cut overall costs, minimize pollutants from vehicle emissions, and reduce the greenhouse gas impacts of vehicle and fuel selection as well as fleet use.

Elements of Green Fleet Performance VehicleJourneyDriver

General Trends in Greening Fleets

PHH Arval Study Results  74% of respondents have been asked about environmental impacts by senior mgmt  21% have accelerated “green” initiatives in current economy, while only 9% have slowed  44% said cost was a barrier; however, 24% have been finding cost savings as they reduce emissions  63% have environmental goals for their fleet (ghg and mpg goals most common)  Only 40% are measuring ghg emissions; of those, 51% using actual fuel use as their measurement  Current economic climate providing opportunity to right-size fleet  Enlisting drivers to help with fleet environmental goals

Who’s getting serious  AT&T will spend >$500 million over next 10 years to deploy 15,000 alternative fuel vehicles  Frito-Lay has 300 CNG delivery trucks on the road and are adding 1,200 fuel-efficient Sprinter delivery vehicles  Eight major airlines at LAX to begin fueling ground service vehicles with synthetic biodiesel in 2012  Paris will launch network of 4,000 shared electric vehicles to reduce air pollution; Toronto is looking at a similar plan  US Postal Service adding 900 hybrid, 1,000 flex-fuel, and 4,600 four- cylinder vehicles to fleet  NYC has largest municipal fleet of alternative fuel vehicles in US (>3,000 hybrids); goal to reduce ghg emissions 30% by 2030

Fleet Procurement  Purchasing decisions moving away from fleet manager to purchasing/procurement groups  Companies adopting minimum mpg requirements in RFPs  Drivers demanding more green vehicles  Pressures to extend fleet service vehicle life, particularly with trucks  Cap and trade legislation will incentivize carbon reduction strategies

Guest Speaker: Terry Robert, Fraser Basin Council Medium Duty Hybrid Vehicle Buyers Group

A Quick Look at Some Case Studies

Issue: Fleet Standardization, City of Abbotsford  “Lean Thinking” philosophy basis for initiative  Three-year fleet standard set for a certain vehicle class (pick-up trucks); no need to go to tender for each vehicle  Benefits: simplify stores, tooling, servicing, service technician training, operator training, fuels, streamline process to reduce repetitive inefficiencies  Work in collaboration with dealer/vendor to get value-add Rod Hull, A/Purchasing Manager

Fleet Standardization Process  “Performance-based purchasing” vs. “Prescriptive purchasing”  Vehicle specifications done based on needs assessment  Used RFP vs. Tender to provide best overall value to City  Two evaluation components –1st Phase: Determine the fleet standard pick-up based on lowest cost on each model in series that met the specification –2nd Phase: Determine preferred vender (with lowest dealer mark-up)  RFP allowed City to address the value-add, i.e. sustainability  Preferred vendor helps to maximize the City’s vehicle purchase (more features, incentive programs, factory closures, etc.)

Issue: Grey Fleet Travel  Grey fleets defined: When employees use their own vehicles for business travel  UK government estimates grey fleets account for approx 57% of total road mileage in public sector  Employee vehicles typically older with higher emission levels than leased or rental vehicles  Dept of Work and Pensions (DWP) independent review showed that staff travelled 70 million business miles (2006/2007)—45 million in grey fleets

Grey Fleets: DWP Initiative  New travel policy –Sets out clear “Travel Hierarchy” and encourages behaviour change re journey planning –Establishes mandatory limits for grey fleet travel (<100 miles/day, <1,000 miles per year)  Provided vehicle alternatives  Broad communication strategies and focused campaigns to promote tele/video-conferencing, transit, pool cars  More rigorous assessment of expense claims  Applies to all staff; senior management not exempt

Grey Fleets: DWP Results (2007/08)  Reduction of 9.5 million grey fleet miles (approx 20%)  Reduction of 3,000 tonnes grey fleet carbon emissions  Direct cost savings of £3.6 million (over $6.4 million CDN) in unused/unclaimed mileage  Indirect cost savings –Reduction in mileage claims processed –Minimization of lost work time through unnecessary travel  Created Grey Fleet Best Practice Guide (copy upon request)

Measurement and Management: City of Hamilton  Green Fleet Implementation Plan approved in 2005 –Linked to VISION 2020 Goals, Transportation Master Plan, and Roadmap to Sustainability  Central Fleet Advisory Committee is large and cross functional  Phase 1, : –Objectives: Improve fuel efficiency, reduce ghg emissions, mai ntain standing as a leader/demonstrate a “green” market exists –Three principal tactics: greater use of hybrid vehicles, introduction of renewable fuels (i.e. biodiesel), reduction in engine idling –Report to Council produced April 2009  Phase 2, –Revised goal: Decrease ghg emissions per km travelled by 2% per year

Hamilton: Green Fleet Implementation Program Phase 1 Results, ActionTarget ResultActual Result Increase use of hybrids46 new vehicles105 new vehicles Hybrid ghg emissionsReduced 111 tonnesReduced 210 tonnes Use biodiesel*21.0 million litres at 10%2.8 million litres at 5% Biodiesel ghg emissions*Reduces 3,892 tonnesReduced 336 tonnes * Market conditions in 2006 made price unaffordable Biodiesel only available in 5% blend instead of 10% anticipated in original plan Minimum 50,000 litre loads (a condition of supplier) only received at two City locations

City of Hamilton: Green Fleet at April 2009 Vehicle TypeNumber of Units in Service Smart for Two - Micro Car2 Honda Civic - hybrid car2 Toyota Prius - hybrid car6 Toyota Camry - hybrid car2 Ford Escape - hybrid car70 Chevrolet Silverado- hybrid pickup12 Saturn Vue - hybrid car13 Vehicles with “Idle-free” interior heaters6 Vehicles with auxiliary batteries for lights6 Ford E250 - natural gas van, pick-up6 John Deere Gator - electric utility vehicle7 Tymco regenerative street sweepers16 Solar-powered arrow boards15 Natural-gas buses94 New Flyer diesel-electric hybrid buses30 Diesel vehicles using B5 biodiesel at Central Garage77

Community GHG Tracking: Denver  Piloting the first internet based vehicular ghg management system  Provides a platform for measuring emissions, implementing reduction goals  Free program to participating Denver city employees and citizens  Two ghg measuring devices installed on vehicle, transmitting data to a “dashboard” on the system  Participants can easily track emissions and driving behaviour causing the emissions rg

Car Sharing: City of Philadelphia  City employees traded in vehicles for access to car share, with onboard tracking computers and automated reservation system  Results: –Reduced 330 vehicles from fleet –Saved $1.8 million / year –Reduced “non-business” use –Increased transit use –No hindrance in ability to do work –Attracting more non-City users to car sharing Fleet Management Goals: Reduce fleet size Address culture of entitlement Allocate resources efficiently Cost reduction

Car Sharing: City of Philadelphia  City employees traded in vehicles for access to car share, with onboard tracking computers and automated reservation system  Results: –Reduced 330 vehicles from fleet –Saved $1.8 million / year –Reduced “non-business” use –Increased transit use –No hindrance in ability to do work –Attracting more non-City users to car sharing Fleet Management Goals: Reduce fleet size Address culture of entitlement Allocate resources efficiently Cost reduction

Take a break!

Guest Speaker: Doug Smith, City of Vancouver Car Sharing and other Green Fleet Initiatives with Tanya Paz, The Company Car

Best Practices in Green Fleet Management

Best Practices Framework  Determine high level green fleet goals—must align with org’l sustainability goals  Create cross-functional team and decide who’d leading the initiative  Set policy and have it endorsed by senior mgmt  Analyze current fleet to create a baseline and identify areas of improvement  Identify key stakeholders and have a plan for managing their input into the initiative

Best Practices Framework (cont.)  Set medium- to long-term fleet management goals  Develop and execute an implementation plan for each goal –Timelines and milestones, staff responsibilities, financial impacts –Ensure adequate resources available  Track and measure against baselines, and review progress with green team regularly  Report to senior mgmt; include successes as well as areas where goals were not met  Re-evaluate goals with input from senior management and green team

Policy: City of San Jose  Linked to Urban Environmental Accords commitment: 25% reduction in ghg’s by 2030 as well as Environmentally Preferable Procurement Policy  Secondary objectives to decrease fuel usage, total fuel costs, total cost of fleet ops per vehicle  Uses as baseline  Green Fleet Team established  Requires a complete vehicle inventory  Strategies include optimizing fleet size, reducing vehicle size, increase use of alternative fuels/equipment, best practices to minimize vehicle miles traveled  Aims to reduce other environmental impacts  Annual reporting GreenFleetPolicy_ pdf

Guest Speaker: Melody Bennett, King County, WA Greening King County’s Fleet

Wrap-up and Evaluation