HomeMy WebLinkAboutORD-2015-019 Budget Ordinance Amendment #10-B for propane vehicle conversion 1
ORD-2015-019
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 16, 2015
Action Agenda
Item No. 6-k
SUBJECT: Propane Vehicle Conversion and Refueling Grant Acceptance and Approval of
Budget Amendment#10-B
DEPARTMENT: Asset Management Services, PUBLIC HEARING: (Y/N) No
Financial and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
Brennan Bouma, (919) 245-2626
1. Clean Fuels Advanced Technology Paul Laughton, (919) 245-2152
(CFAT) Grant Application
2. Alliance Autogas Sole Source
Document
PURPOSE: To receive and implement a NC Clean Energy and Technology Center grant, and
approve Budget Amendment #10-B, to convert 19 vehicles to run on propane and install the
necessary propane fueling infrastructure.
BACKGROUND: On April 1, 2015 County staff responded to a request for proposals from the
North Carolina Clean Energy Technology Center (NC CETC) for Clean Fuel Advanced
Technology (CFAT) 2013-2015 grant funding. The grant program is sponsored by the NC
Department of Transportation and funded with federal Congestion Mitigation Air Quality funds.
Staff was notified that the application was approved on April 27th. During the month of May,
staff worked to recheck the proposed project to identify and address additional concerns and
expected costs.
The focus of the grant program is making improvements to air quality and running vehicles on
propane instead of gasoline to significantly reduce the emissions per mile of criteria air
pollutants including nitrous oxide, carbon monoxide, volatile organic compounds, and particulate
matter as well as reducing greenhouse gases by 10%.
Besides air quality improvements, other propane vehicle benefits include:
• Cost savings — Significant financial savings are possible when replacing gasoline with
propane. Currently the savings would be approximately 40% per gallon, but this varies
seasonally and may at times be more expensive than gasoline.
• Options — During times of high cost or low availability of one fuel or the other, these bi-
fuel vehicles could use the cheaper fuel.
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• Increased safety — Propane is less flammable than gasoline and the tanks are more
puncture resistant
• Energy security — According to the NC CETC, "92% of LPG used in the U.S. is produced
domestically, whereas 56% of the U.S. petroleum demand was imported in 2012."
• Increased range — If both the propane and gasoline tanks are full, these vehicles will
have dramatically increased range with no loss of vehicle performance.
The grant project period is April 30, 2015 through March 31, 2016. The vehicles involved would
include the highest fuel users from the Sherriff's Office, Orange Public Transit, and Emergency
Management departments.
Written into the grant is a partnership with Alliance Autogas. Alliance, along with its parent
company Blossman Gas, is the sole-source provider of this "turnkey" package of Environmental
Protection Agency-certified "PRINS" brand vehicle conversion kits, a refueling system, and
propane fuel.
The County would purchase propane vehicle fuel from Alliance for the first 5 years of this
project, and Alliance will guarantee the price relative to the wholesale (or "pipeline") price of
propane. Once the project begins and the County is on-track to use a minimum of 20,000
gallons of propane each year, Alliance has agreed to match the state contract price of propane.
The refueling station package would be provided free of charge to the County to use based on
the projected fuel usage. Alliance would maintain ownership of the station and would take care
of any necessary maintenance or upgrades. It would be located at the site of the County's
former CNG station and interconnected into the current fuel management system for gasoline
and diesel.
The vehicle conversions would be done on-site at the County Motor Pool facility in order to
speed up the conversion process and facilitate the training of the County's fleet maintenance
staff in how to repair and maintain the systems.
FINANCIAL IMPACT: The total project cost is $106,613 with grant funds of $84,840. The
remaining 20% of the total project cost is "cost share" that is required to be paid by all
applicants. The County's share of $21,773 will be paid from available funds within the Energy
Bank Capital Project. With this appropriation, $37,006 remains available in the Energy Bank
Capital Project. The Energy Bank project was established in FY 2012-13 and provides funding
for projects that reduce energy/water demand at County facilities.
The 5-year fuel purchase agreement with Alliance would entail no additional costs to the County
as these funds would otherwise be spent on gasoline, and there are no early termination fees
should the County decide to discontinue the program.
Budget Amendment #10-B provides for the receipt of the grant funds of $84,840, provides for
the use of Energy Bank Capital Project funds of $21,773 for the required County match, and
establishes the following Grant Project Ordinance, as well as amends the following Energy Bank
Capital Project Ordinance for the County match:
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Clean Fuels Advanced Technology Grant ($106,613) — New Project # (71325)
Revenues for this project:
Current FY FY 2014-15 FY 2014-15
2014-15 Amendment Revised
Clean Fuels Advanced Technology $0 $84,840 $84,840
Grant Funds
From County Capital $0 $21,773 $21,773
Total Project Funding $0 $106,613 $106,613
Appropriated for this project:
Current FY FY 2014-15 FY 2014-15
2014-15 Amendment Revised
Clean Fuels Advanced Technology $0 $106,613 $106,613
Grant
Total Costs $0 $106,613 $106,613
Energy Bank ($21,773) — Project# (30050)
Revenues for this project:
Current FY FY 2014-15 FY 2014-15
2014-15 Amendment Revised
From General Fund $100,000 ($21,773) $78,227
Total Project Funding $100,000 ($21,773) $78,227
Appropriated for this project:
Current FY FY 2014-15 FY 2014-15
2014-15 Amendment Revised
Construction (Energy Bank) $100,000 ($21,773) $78,227
Total Costs $100,000 ($21,773) $78,227
RECOMMENDATION(S): The Manager recommends that the Board:
1) approve and authorize the Manager to sign the contract;
2) approve Budget Amendment #10-B for the acceptance of the grant funds and the use of
County Capital funds for the required match; and
3) instruct staff to proceed with this project.
Attachment 1 4
Clean Fuel Advanced Technology LPG Proposal Application
Overview
Organization: Orange County NC
Project Coordinator: Brennan Bouma
Address: 131 W. Margaret Lane
City: Hillsborough County: Orange Zip: 27278
Telephone: 919-245-2626 FAX: 919-644-3001
Email: bbouma @orangecountync.gov
Alternate Contact Person/Telephone/Email:
Alan Dorman / 919-245-2627 / adorman @orangecountync.gov
Project location (if different than applicant location)
Address: Motor Pool Facility, 600 NC Highway 86 North
City: Hillsborough County: Orange Zip: 27278
Applicant type (check one): Public X Private ❑
Total Project Cost: $106,613 Amount Requested: $84,840
Matching Funds: $21,773 (minimum 20% of total project cost)
Project type/specifics:
1. Alternative Fuel or Advanced Technology Vehicles:
Vehicle type (make, model, year):
Dedicated Bi-fuel
Number of vehicles:
Estimated per-vehicle annual mileage:
Estimated % miles driven in eligible counties
Estimated % miles using alternative fuel (bi-fuel applications):
Average conventional fuel economy (MPG):
Alternative fuel station(s) where vehicle(s) will refuel (address):
1
5
Clean Fuel Advanced Technology LPG Proposal Application
2. AFV Conversions and Up Fits:
Vehicle type (make, model, year) to be converted/ up-fitted:
Average Average
Vehicle type Annual Average Annual Total
make, model, Quantit Vehicle Annual Fuel Use Annual De artment
( year) y Miles Mileage projection Projected p
Travelled (mpg) (gal) Fuel Use
(VMT)
2014 Ford 1 7 12,000 10.9 1,189 8,325 Sherriff
Expedition
2012 Ford E-350 2 8,095 9.0 576 1,152 Sherriff
Vans
2012 Ford F-150 Emergency
4x4 pick up 1 Services
2013 Ford F-150 1 17,968 13.5 1,438 4,314
Emergency
4x4 pick up Services
2014 Ford F-150 Emergency
4x4 pick up 1 Services
2015 Ford E-450 Orange
vans2 7 28,000 7.9 3,895 27,265 Public
Transit
Number of conversions or up fits to be installed: 19
Dedicated Bi-fuel X
Estimated % miles using alternative fuel (bi-fuel applications)
90%
Estimated per vehicle annual mileage:
16,516 miles, global average (see chart above for detailed breakdown)
Average conventional fuel economy (MPG):
10 mpg, global average (see chart above for detailed breakdown)
Alternative fuel station(s) where vehicle(s) will refuel or recharge (address):
1 These Expeditions have not been in service a full years, so usage is projected based on current vehicles in service. The
average annual milage of the 5 Expeditions in active use is 12,780 miles, and their average fuel economy is 10.9 mpg.
2 These transit vans are new to the fleet, so usage is projected based on current vehicles in service. The average annual
milage of the 10 transit vans in active use is 28,845 miles, and their average fuel economy is 7.9 mpg.
2
6
Clean Fuel Advanced Technology LPG Proposal Application
Motor Pool Facility, 600 NC Highway 86 North, Hillsborough, NC 27278
3. Refueling Infrastructure:
Estimated annual gallons to be dispensed:
Total projected gasoline usage (baseline) 41,056
90%gasoline gallons displaced by propane usage 36,950
Gallons propane in one GGE (73% energy content) 1.37
Gallons of Propane Needed 50,617
Open to the public: Yes X No
Other Emission Reduction Efforts: How does this project fit with current or future emission
reduction efforts?
Orange County is committed to the reduction of vehicle emissions within this area. Orange County
has identified three county divisions to participate in this grant project, the Sheriff's Office, Orange
County Emergency Services, and Orange County Public Transit. Piloting the use of alternative fuels
in these three agencies will make a significant contribution to the reduction of emissions as well as
receive added benefits of reduced operating costs. Orange County hopes that a successful
experience with propane bi-fuel vehicles will make the case for future investments in a more diverse
portfolio of clean, alternative fuels.
Emission Reductions: total project annual grams per mile.
Check if attaching own data Leave below blank if NCSC is calculating.
CO: NOx: VOCs: PM:
"Buy America" Compliance
pplicant hereby certifies compliance with "Buy America" requirements; OR
X Applicant hereby certifies "Buy America" is inapplicable to this project.
(For AFV purchases) Applicant hereby certifies that vehicle final assembly occurs in the U.S.
Project Description
Project Summary:
With grant funding from the NC Clean Energy and Technology Center, Orange County will implement
a project to convert 19 vehicles to PRINS bi-fuel EPA Certified Vapor Sequential Injection propane
AutoGas system and install the necessary fueling infrastructure.
3
7
Clean Fuel Advanced Technology LPG Proposal Application
Statement of Work
Task #1: Acquisition and Installation of Equipment or Infrastructure.
Orange County will team with Alliance AutoGas to convert 19 vehicles that currently run on
conventional unleaded gasoline to operating on propane AutoGas using the PRINS bi-fuel system.
The PRINS bi-fuel system is an EPA Certified Vapor Sequential Injection system that starts on
gasoline, immediately switches to propane AutoGas, thereby allowing the Orange County Sheriff's
Office, Emergency Services and Orange County Public Transit to better utilize their service fleet
within the non-attainment portion of Orange County. The 19 CFAT funded vehicles are part of an
overall initiative by Orange County to successfully incorporate alternative fuels into their fleets and to
continue their commitment to alternative fuel sources and emission reductions.
With Alliance AutoGas providing the turn-key propane solutions through its founding partners,
Blossman Gas, Orange County will be able to strategically place the necessary propane AutoGas
fueling infrastructure (at no cost to the county). The propane AutoGas fueling infrastructure will be
sized in such a manner as to accommodate the county's future needs for propane AutoGas, well
beyond the three year commitment for this project (see quote attached).
Orange County will work with Alliance AutoGas to integrate the new fueling infrastructure into our
current Fuel Management system. This will involve an additional gauge which will be installed by Go
Energies (see quote attached).
Orange County will receive the necessary training to have its maintenance facility and technicians
certified to perform all conversions of the EPA Certified PRINS bi-fuel systems for this project, as well
as any future Orange County fleet vehicle conversions to the PRINS system.
Orange County will meet all relevant local, state and federal permitting/purchasing requirements
related to this project and will utilize the propane-converted vehicles for a minimum of three years.
TASK 1 DELIVERABLES
• Deliverable 1.1: Copies of paid invoices for all costs associated with project will be
provided.
• Deliverable 1.2: Brief description of what was accomplished will be provided.
Task #2: Usage tracking of project technology/fuel.
Orange County agrees to utilize quarterly tracking form provided by NC Clean Energy and
Technology Center and/or another mutually agreed format to track technology usage such as vehicle
miles traveled and gallons of propane used.
Gasoline displacement: Driving on propane 90% of the time, we expect the 19 vehicles involved in
this project will displace an estimated total of 110,850 gasoline gallons over the three year period of
the project (or 36,950 annually).
Orange County vehicles in this project travel on average approximately 16,516 miles per year (each).
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8
Clean Fuel Advanced Technology LPG Proposal Application
(Please see the charts in responses #2 and#3 above for a detailed breakdown)
TASK 2 DELIVERABLES
• Deliverable 2.1: A minimum of 6 months of recorded usage will be provided in acceptable
form.
• Deliverable 2.2:An estimate of gallons usage or saved for additional months totaling 36 will
be provided.
Task #3: Public Awareness and Education.
All of the converted vehicles will have Propane Vehicle labeling on them. In addition to this labeling,
Orange County will design a unique logo representing the Alternative Fuel program and this logo will
also be placed on each vehicle. Each fueling station will also be branded with the logo.
See an unapproved draft of our logo below:
1-
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Orange County will also promote the program through the local and state media as well as at public
forums and functions as appropriate.
The NC Dept. Of Transportation and the NC Clean Energy Technology Center will be recognized as
project sponsors on all public awareness materials.
TASK 3 DELIVERABLES
• Deliverable 3.1: Documentation of all Public Awareness and Education activities will be
provided via quarterly report template provided by the NC Clean Energy Technology
Center.
• Deliverable 3.2: Copies of all press releases and promotional material used to showcase
project to the public will accompany quarterly reports. All press releases will acknowledge
support through the NC Clean Energy Technology Center at NC State University with
federal Congestion Mitigation Air Quality funding provided from the NC Department of
Transportation.
• Deliverable 3.3: Photo of project signage and/or photo of vehicle decals will be provided.
• Deliverable3.4: Documentation of participation in NC Smart Fleet initiative (if applicable)
Task #4: Reporting.
Reports documenting achieved deliverables will accompany all itemized paid invoice reimbursement
requests. Cost share will be documented along with reimbursement requests. A final cost share letter
providing a cost share description and stating total cost share contribution will be submitted on
5
9
Clean Fuel Advanced Technology LPG Proposal Application
letterhead with final invoice. A quarterly schedule established by the NC Clean Energy Technology
Center will be used to submit progress reports, technology use tracking forms, invoices and cost
share documentation. A brief final report summarizing the accomplishments of Tasks 1-3 will be
compiled and submitted no later than fifteen days following the completion of the project.
TASK 4 DELIVERABLES
• Deliverable 4.1: Cost share documentation on letterhead will accompany final invoice.
• Deliverable 4.2: Completion of quarterly progress reports
• Deliverable 4.3: Copies of paid invoices for grant funded project[see Deliverable 1.1] will
accompany all requests for reimbursement.
• Deliverable 4.4: One (1) final report summarizing project deliverables.
Timeline
Project Dates: May 1, 2015 — March 31, 2016
1st Quarter: *May 1, 2015 — June 30, 2015
• Order the 19 PRINS Systems with tanks
• Start PRINS System installation and certify facility and technicians
• Supply installation and repair training to fleet maintenance personnel
• Quarterly report due: July 15, 2015
If submitting more than one invoice for reimbursement, final invoice will be marked as such. If only
submitting one invoice, this will be marked as final. Cost share letter will be submitted with final
invoice [refer to deliverable 4.1].
2nd Quarter: July 01, 2015 — September 30, 2015
• Obtain permits and permissions for infrastructure
• Set propane AutoGas fueling infrastructure
• Test and confirm fueling infrastructure operates correctly
• Test and confirm PRINS Systems operate correctly
• Supply safety and operation training to personnel
• Complete PRINS System installations
• Supply safety and operation training to personnel
• Public awareness and education activity
• Quarterly report due: October 15, 2015
3rd Quarter: October 01, 2015 — December 31, 2015
Usage monitoring, recording, and reporting on all program requirements
• Quarterly report due: January 15, 2016
4rd Quarter: January 01, 2016 — March 31, 2016
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10
Clean Fuel Advanced Technology LPG Proposal Application
• Usage monitoring and recording
• Public awareness and education activity
• Prepare and submit final report
• Quarterly and final report due: April 15, 2016
*Indicates elongated or shortened quarters due to overall project period.
Budget
Expense Description Quantity Per Item Cost CFAT Funds 20% Min Cash Total
Match
PRINS System 9 $5,800 $41,760 $10,440 $52,200
Conversion of 2 x E-350
Vans and 7 x E-450 vans
PRINS System to convert 10 $4,800 $38,400 $9,600 $48,000
7 x 2014 Ford Expedition
and 3 x F-150 trucks
PRINS Installation 1 $1,500 $750 $750 $1,500
installation of units,
additional time to train
and certify staff
Fueling Station 1 $988 $790 $198 $988
Integration of Fuel
Management System
(Go Energies)
Fueling Station connection 1 $3,925.00 $3,140 $785 $3,925
to existing
Fuel Master pedestal
(Carolina Earthscapes)
PROJECT TOTAL $84,840 $21,773 $106,613
% of project total 79.6% 20.4%
7
11
Attachment 2
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May 7, 2015
Brennan Bouma
Sustainability Coordinator
Orange County Government
PO Box 8181
Hillsborough, NC 27278
Subject: Sole Source Provider
Dear Mr. Bouma,
This letter is to notify you that Blossman Services Inc./Alliance AutoGas is the only vendor
capable of providing a turnkey solution for the conversion of your fleet of Ford E-350 and E-450
vans, Ford Expeditions, and E-150 trucks using the PRINS VSI Bi-fuel (Propane AutoGas and
gasoline) system. Blossman Services Inc. is the manufacturer of record for the PRINS VSI Bi-
fuel system and is the only certified distributor of the PRINS system in the United States. Any
EPA certification for the PRINS VSI Bi-fuel system must be issued in the name of Blossman
Services Inc. Blossman Services Inc. is the only vendor in the United States that can provide the
necessary Certificates of Conformity for the PRINS system. Our turnkey solution is all inclusive
and provides the following:
• EPA certified PRINS VSI Bi-fuel systems for fleet of listed vehicles.
• 3 year, 36,000 mile warranty
• Conversion of the fleet OR training and certification of Orange County automotive
technicians to perform PRINS conversions on County vehicles.
• Initial and ongoing operational and safety training and ongoing technical and customer
support.
• Propane AutoGas fueling infrastructure(equipment at no cost to Orange County based on
5 year fuel supply agreement).
• Propane AutoGas fuel based on Dixie Pipeline prices.
This is the same sole sourced, turn-key solution provided to Pickens County Sheriffs Office,
Anderson County and Iredell County as well as many other municipalities for their conversion
projects through ARRA grant funding and CFAT grant funding.
Utilizing a turn-key approach to your alternative fuel project will provide confidence that the
program will be successful. This approach will also assist in meeting the requirements of the
project.
12
Attachment 2
We look forward to assisting Orange County "Clean Fuels for the Future" AutoGas project.
Sincerely,
Mike Phillips