FY09 Budget Change Proposal - Laserfiche WebLink

New Search

FY09 Budget Change Proposal Title: Suspending use of BioDiesel as primary diesel fuel No: Fleet -1 Department: Public Works -Fleet Services Dept. Target: 100,000 Service Category: Fleet and Radio Services Dept. Contact: Tony Jobanek FTE General Fund One -Time Ongoing Total Change Revenue Change - Expenditure Change - Net Change - - - 0.00 Other Funds: Fund # 619 Revenue Change - Expenditure Change (65,000) (65,000) Net Change - (65,000) (65,000) 0.00 Fund # Revenue Change - Expenditure Change - Net Change - - - 0.00 All Funds Total Revenue Change - - - - Expenditure Change - (65,000) (65,000) - Net Change - (65,000) (65,000) 0.00 Brief Summary of the Change: This proposal would suspend the use of domestically produced biodiesel in all City owned diesel vehicles and equipment. The move to Biodiesel for all City owned diesel vehicles and equipment was made in 2004 with the intent to facilitate the reduction of the carbon footprint of Fleet operations by reducing CO2 emissions provided by this fuel blend. Currently the organization pays approximately a 13.7% cost premium for use of biodiesel over the use of petroleum based Ultra Low Sulfur Diesel. The estimate of savings in this proposal is based on the FY08 total consumption of diesel fuel and the current difference in cost between B20 and 100% petroleum diesel. Due to volatility in the open fuel markets the exact savings beyond FY09 will fluctuate and this estimate is a snapshot of current fuel market costs. Impact on Customers and Other City Services (include the Impact on Performance Measures): The impact to customers would not be immediately apparent except through a slight reduction to Fleet Rates due to the savings to overall Fuel costs. There would be a need for Fleet Services to monitor vehicle performance and impacts to mechanical systems of the equipment to ensure no requirement for changes to preventative maintenance schedules were warrented. If the change were made in FY09, rate impacts would not be seen until the FY10 budget process. Elimination of biofuel use would jepordize the City of Eugene's partnership in the Clean Cities Coalition. In addition, the organization is recognized by the state of Oregon as being a leader in green initiatives with the use of bio fuels being one primary driver. Currently the Oregon Department of Environmental Quality is considering Eugene for qualification as a certified Clean Fleet and the use of altemative bio fuels is a large portion of the criteria used in making that determination. Impact on Council Goals & Initiatives: The move toward the use of bio fuels was driven to address the council goal of increasing organizational sustainability. City of Eugene fuel purchases of domestically produced bio fuel products are intended to reduce the amount of imported petroleum fossil fuels consumed by City vehicle operations. In addition, the reduction of greenhouse gas emissions such as CO2 through the use of biofuels is seen as an effective way to reduce the organization's carbon footprint. The municipal fleet industry nationwide as well as major vehicle manufacturers' are moving toward the increased use of biofuels. Discontinuing biodiesel use would move the organization away from being a leader in the state with this effort.