Case Studies in Green Fleet Management

September 17, 2009

Facilitator:Carol Boutin

Program Manager

Workshop Agenda

8:30 Introduction / Trends in green fleet mgmt

9:00 Terry Robert, Fraser Basin Council9:30 Case study review10:00 Coffee10:15 Doug Smith, City of Vancouver10:45 Fleet sustainability best practice11:00 Melody Bennett, King County, WA11:45 Recap 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

Vehicle Journey Driver

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are needed to see this picture.

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 CouncilMedium 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 Manager604 864 5616Rkhull@abbotsford.ca

www.lean.org

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, 2006-2008:

– 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, 2009-2011

– Revised goal: Decrease ghg emissions per km travelled by 2% per year

Hamilton: Green Fleet Implementation Program Phase 1 Results, 2006-2008

Action Target Result Actual ResultIncrease use of hybrids

46 new vehicles 105 new vehicles

Hybrid ghg emissions Reduced 111 tonnes Reduced 210 tonnesUse biodiesel* 21.0 million litres

at 10%2.8 million litres at 5%

Biodiesel ghg emissions*

Reduces 3,892 tonnes Reduced 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 Type Number of Units in Service

Smart for Two - Micro Car 2

Honda Civic - hybrid car 2

Toyota Prius - hybrid car 6

Toyota Camry - hybrid car 2

Ford Escape - hybrid car 70

Chevrolet Silverado- hybrid pickup 12

Saturn Vue - hybrid car 13

Vehicles with “Idle-free” interior heaters 6

Vehicles with auxiliary batteries for lights 6

Ford E250 - natural gas van, pick-up 6

John Deere Gator - electric utility vehicle 7

Tymco regenerative street sweepers 16

Solar-powered arrow boards 15

Natural-gas buses 94

New Flyer diesel-electric hybrid buses 30

Diesel vehicles using B5 biodiesel at Central Garage 77

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

www.drivingchange.org

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 VancouverCar Sharing and other Green Fleet Initiativeswith 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 2002-03 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

www.sanjoseca.gov/esd/PDFs/GreenFleetPolicy_091707.pdf

Guest Speaker:

Melody Bennett, King County, WAGreening King County’s Fleet

Wrap-up and Evaluation

www.buysmartbc.comwww.greenfleetsbc.com

www.e3fleet.comwww.idlefreebc.comwww.biofleet.net

www.hybridexperience.com