City of Milwaukee Department of Public Works Operations Division, Fleet Services Section

Tom Barrett, Mayor

Ghassan Korban, Commissioner of Public Works

Preston D. Cole, Director of Operations

Jeffrey A. Tews, CPFP

Fleet Operations Manager

Diverse Fleet

123 different types of equipment, from aerial lifts to welders

City of Milwaukee Fleet:

– Diesel Units 929 pieces

– Gasoline Units 1,670 pieces

– Propane Units 138 pieces

– Non-Fuel Units 995 pieces

Annual Fuel Use:

– Diesel Fuel 1,000,000 gallons/year

– Gasoline 1,200,000 gallons/year

– Propane 17,000 gallons/year

Uncertainty of Fuel Costs

Fuel Cost Since 1/1/08

with Min and Max Costs Noted

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1/2/2008

2/2/2008

3/2/2008

4/2/2008

5/2/2008

6/2/2008

7/2/2008

8/2/2008

9/2/2008

10/2/2008

11/2/2008

12/2/2008

1/2/2009

2/2/2009

3/2/2009

4/2/2009

5/2/2009

6/2/2009

7/2/2009

8/2/2009

9/2/2009

10/2/2009

11/2/2009

Date

Co

st

Unleaded Diesel LPG

2.17

1.06

1.78

1.48

4.68

3.87

Diesel

2.69

Unleaded

2.25

LPG 1.13

Gas: Low $1.48

High $3.87

Diesel: Low $1.78

High $4.68

Biodiesel Use, 2006 - Present

Over 650,000 gallons used

102,750 gallons in 2012

Various blends used; B2-B20

Supplement ULSD fuel

Partially subsidized

Typical Sources Gel Point

Palm Kernel Oil 50° F Animal Fats 45° F Corn Oil 40° F Soybean Oil 32° F Canola Oil 28° F

Biodiesel Sources

Inexpensive

Expensive

Other Sources

Rapeseed oil Used cooking oil Cottonseed oil Sunflower oil Algae (April 2008)

City of Milwaukee uses B100 that meets ASTM Specification D6751, manufactured by a BQ-9000 Accredited Producer, and purchased from a Certified Marketer.

B20 blends comply with the Engine Manufacturers Association (EMA) test specification for B20.

Biodiesel Quality

Virtually no conversion costs. Can be used in existing diesel equipment, with no infrastructure changes.

Directly displaces petroleum diesel fuel.

Renewable, made from several sources.

Reduces emissions. When used in

B20 blend, biodiesel use:

Decreases HC emissions by over 10-20%

Decreases CO emissions by about 10-20%

Decreases PM emissions by about 10-25%

Biodiesel Pros

Biodiesel Cons

Fuel filters changed in addition to normal

Preventive Maintenance filter changes

Time Frame Filters Used Comments

January-December 2005 107 Before Biodiesel

January-December 2006 227 Using Biodiesel

January-December 2007 317 72% increase

January-December 2008 136 43% decrease

Increase in cost versus petroleum diesel.

Not suitable for long-term storage.

Increased storage tank maintenance required.

Can clog fuel filters quickly upon introduction.

Biodiesel Cons

Attracts water

Increased need to monitor underground fuel supplies for water and bacteria

Start treating fuel in August

Increased Tank Maintenance

Free water in the fuel storage tank accelerates corrosion and fuel degradation, and can also promote the growth of bacteria.

Tank designs have made complete removal of water almost impossible. Moisture enters mostly as condensation from air. Vents and seals that are poorly constructed or maintained can allow water to infiltrate the storage tank.

Biodiesel Concerns

Uptick in corrosion in fuel storage tanks (Government Fleet Magazine). Lubricity additive added to petroleum diesel to compensate for

loss of lubricity of ULSD. Additive used to reduce static electricity discovered onboard

transport trucks, from hauling different types of fuels. In ground storage tanks need to be properly grounded

(cathodic protection).

“That %#@* biodiesel is responsible for my equipment running like *%&#!”

Crabapple fruit, pulled from the fuel filter inlet on a City vehicle

OPTIONAL COLD WEATHER ADDITIVE PACKAGE: Bidders shall indicate the

cost to furnish and install a non-alcohol based cold weather anti-gelling, deicing

additive to the delivered fuel, capable of maintaining a cold filter plug point

(CFPP) of -30 F, +/- 4 F, based on the cold weather blend of #2 ULSD at 70%, #1

ULSD at 20%, and B100 at 10%. An acceptable additive is ValvTect High

Performance Biodiesel Anti-Gel/Deicer Additive, or City approved equal.

Proposed additive package brand/part #______________________

Cost to treat one gallon of delivered fuel $______________

Cold Weather Specifications

Work with your fuel vendor to maintain fuel consistency in cold weather situations.

Cost Increases, Credits

Typical B100 cost per gallon: $4.42 (B100)

Includes offset by

Federal Blending Tax Credit, $1.00/gallon

Gone as of January 1, 2010

Returned in 2013, retroactive to January 1, 2012

Renewable Fuel Identification Numbers (RINS)

Credits that can be bought and sold

One gallon of biodiesel blended earns 1.5 RINS

At a recent value of $.64/RIN, vendor offset the cost of biodiesel by $.96 per gallon through end of year 2013.

Biodiesel is one of many viable alternative fuel choices, at a time when several such alternative fuel choices available. New developments announced continuously.

Fleet managers must stay abreast of recent developments and potential costs to find the “sweet spot” between the three main factors: Range, Payload, and Cost of Infrastructure.

Countless resources are available.

For every reported problem, there may be a solution.

In Closing

Questions?