Opportunities to Reduce Criteria Pollutant and GHG Emissions from State Fleets An Overview

1. Opportunities to ReduceCriteria Pollutant and GHG Emissions from State FleetsAn Overview Transportation Work Group Phase III - Meeting 1 October 30, 2003 NESCAUM 101 Merrimac Street, 10th Floor Boston, Massachusetts 02114 617-367-8540 www.nescaum.org

2. Background • A number of initiatives to reduce criteria pollutant and GHG emissions from state fleet vehicles are being adopted in the region and in the U.S. • These include: - procurement of hybrid-electric vehicles - measures to improve the effectiveness of EPAct - “downsizing” of state fleets - improving existing fleet efficiency through aftermarket part/lubricating oil specifications Page 2

3. NEG-ECP Climate Action Plan • The New England Governors – Eastern Canadian Premiers adopted a Climate Action Plan in 2001 • A “green” state fleet workgroup has been established as part of that process • The workgroup is evaluating a number of options to encourage advanced technology vehicles and fuel efficiency measures Page 3

4. Workgroup Discussions • Pursue coordinated procurement of “green vehicles” • The Center for a New American Dream is working with U.S. Communities to develop “green” specifications and a national cooperative purchase of hybrid vehicles • Improve fuel efficiency of new vehicles both EPAct compliant and those that do not have to be EPAct compliant • Improve fuel efficiency of existing fleet vehicles by developing specifications for fuel efficient replacement tires and lubricating oil Page 4

5. EPACT Issues • EPACT dictates procurement requirements for fleets in most metro areas. • While most EPACT compliant vehicles have comparatively low GHG, low GHG vehicles such as HEVs are not compliant. • The Senate version of the National Energy Bill (currently in conference) would allow HEVs to satisfy EPACT requirements. • The House version does not include a similar provision. Page 5

6. Possible Approaches • Focus on non-EPACT vehicles. • Non-centrally fueled vehicles. • Fleets outside MSAs or in MSAs with 1980 populations below 250,000. • Ensure EPACT vehicles are operated on fuels other than gasoline. • Flex-fuel (FFV) and bi-fuel vehicles loss most or all of their GHG benefits when operated on gasoline. • Fuel availability key. Page 6

7. Coordinated Procurement • King County, WA is attempting to institute a national collective purchasing group. • Reduce cost of RFP prep, vehicle and parts costs, etc. • Help ensure availability of vehicles. • Similar regional, state, or local effort could be undertaken Page 7

8. Example Policy Initiatives • Maine EO requires that state subcompact and compact car purchases be HEVs • Massachusetts EO 388 requires dedicated AFVs in lieu of FFV or bi-fuel vehicles. • New York EO 111 requires 50% AFVs by 2005, 100% by 2010. • Covers all vehicles. • California SB 552 and SB 1170 Page 8

9. Summary of NEGC “Green Vehicle” Efforts • coordinated procurement may offer economies of scale, lower “cost of ownership” to fleet owners, and improved access to advanced technology vehicles • It also poses significant logistical hurdles • Workgroup concluded that we should see what comes out of the Washington State effort and possibly join if it proves fruitful • Recommend to the NEG –ECP Climate Action Steering Committee that governors adopt green vehicle purchasing policies based on NY, MA, and ME executive orders Page 9

10. Improving Fuel Economy of Existing State Fleet Vehicles • Improving Fuel Efficiency of Aftermarket Tires - A limited number of replacement tires appear to be as efficient as the tires that come on new vehicles, but they are not labeled or marketed as such, making them nearly impossible for consumers to find - fuel efficient replacement tires could lower fuel consumption by 3% Page 10

11. Fuel Efficient Tires (cont.) • Require bidders on replacement tire contracts to submit information on rolling resistance, using an agreed upon SAE test procedure. Prefer the purchase of low rolling resistance tires that also have superior tread life, like those already identified by a Green Seal report. • Adopt similar requirements as in California for rating, labeling, and setting minimum efficiency standards for all replacement tires sold in their states. States could work jointly with the California Energy Commission to develop the labeling and efficiency requirements. • Encourage the purchase of low rolling resistance tire through advertising, purchase incentives, and other means to educate consumers. Page 11

12. Existing Fleet (cont.) • Improving Fuel Efficiency Through Lube Oil Changes - Relative to a 10W30 a 5W20 would provides a 2% fuel economy benefit - States could evaluate grade of oil used in fleet vehicles and consider purchasing 5W20 or 10W20 rather than higher viscosity oil if that is currently being used - Cost of lowering viscosity would range from 10 to 50 cents per quart Page 12

13. Other Measure to Improve Efficiency: Downsizing • California SB 1170 established the goal of reducing the fuel consumption of state fleet vehicles 10% by January of 2005 • SB 552: “the state should discourage state offices, agencies, and departments from purchasing sport utility vehicles unless [there is] a critical need for that vehicle” Page 13

14. Conclusions • A number of policies for green vehicle procurement exist that states can use as templates. • These include policies on the purchase of hybrid-electric vehicles, improving the effectiveness of EPAct, improving efficiency of existing state fleet vheicles, and downsizing reduce GHG emissions. • These policies could be adopted by other states to achieve significant reductions in state fleet GHG emissions at a low cost. Page 14