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Green Fleet Workshop Illinois Green Fleets: Programs for E-85 and Biodiesel Darwin Burkhart, Illinois EPA Hosted by the Responsible Purchasing Network www.responsiblepurchasing.org March 29, 2007 Alternate Fuel Programs in Illinois 1. Clean Fuel Fleet Program (Clean Air Act Requirement) ----- Started in 1998 for fleets of 10+ vehicles in the Chicago area Required “LEV” certification At first, alternate fuels were thought to be the only option Conventional gasoline vehicles and AFVs complied with the program’s requirements -- Biggest Benefit: Fleets got acquainted with alternate fuels due to pending CFFP requirements -- Several local government and business fleets chose to go with alternate fuels because “it was the right thing to do” -- Created several “spin-off” programs www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 2 Alternate Fuel Programs in Illinois 2. Illinois Alternate Fuels Rebate Program -- Vehicle, Conversion, and Fuel Rebates for E-85, biodiesel, natural gas, propane, electricity and hydrogen -- E-85 Rebates: $450 or $340 rebates for using E-85 fuel or 80% of the extra cost of an FFV; $239,890 issued to 217 applicants for 687 FFVs -- Biodiesel Rebates: Covers extra cost of using biodiesel (B20); $435,000 issued to 52 fleets for 6,114 vehicles; 26 of these fleets are school districts for 1,854 school buses www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 3 Alternate Fuel Programs in Illinois 3. Chicago Area Clean Cities Program -- $4.5 Million for alternate fuel infrastructure in the Chicago area (E-85, CNG, LPG) -- Sponsored incentive legislation -- Fleet outreach, numerous conferences and seminars -- Highlight fleet success stories for all fuels, provide networking opportunities -- Several of our fleet managers go out and talk to their colleagues about their experiences www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 4 Alternate Fuel Programs in Illinois 4. Illinois Green Fleets Program -- Fleet Networking -- Marketing/Signage -- Positive Public Relations -- Public Education/Media Events -- Illinois’ website for information on the “green fleets,” rebate incentives, AFVs, hybrids, locations of E85 and biodiesel stations, conferences, announcements, etc. -- Many Illinois Green Fleets have implemented multiple fuels -- www.illinoisgreenfleets.org www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 5 Alternate Fuel Programs in Illinois 5. Biofuels Tax Incentive -- Starting in 2003, no state sales tax (6.25%) on biofuels greater than 10% blend -- Applies to E-85 and Biodiesel blends >10% -- Illinois is the home of “B11” -- E-85 and Biodiesel (B11) are cheaper than gasoline/diesel in Illinois www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 6 Alternate Fuel Programs in Illinois 6. E-85 Infrastructure Program -- Starting in 2005, State has over $1 million in grants to install E-85 infrastructure -- Illinois went from 18 retail E-85 stations in early 2005 to 148 stations today -- Number of retail biodiesel stations (B11, and some B20) is at least 150, due to tax incentives and not grants www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 7 Success Stories/Best Practices: What We Have Learned • Fleet managers: “Don’t dabble in it, commit to it” • For E-85, purchase FFVs and use E-85 nearly all the time; staff training minimal; get drivers used to 10-20% loss in mpg • Good Examples: Nicor, City of Aurora, State of Illinois • For Biodiesel (B20), most fleets use it in all diesel vehicles and equipment • Incentives help, but not required • Good Examples: Commonwealth Edison, Cook-Illinois Bus Corp. • Some “green fleets” turn down rebates, want to publicize they are doing it voluntarily, good business practice, “buy American” policy www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 8 Biofuels Supply • Biodiesel -- Illinois is #1 consumer of biodiesel (mostly B11 and B20) in the nation -- Close to 100 million gallons consumed in 2006, 1/3 of all biodiesel consumed in the U.S. -- Only 2 operating biodiesel plants in the state, 13 more planned -- Illinois is also the #1 importer of biodiesel, sometimes creating shortages elsewhere www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 9 Biofuels Costs • E-85 in Illinois is 10-70 cents less per gallon, varies statewide • E-85: 10-20% less mpg will reduce cost benefit • E-85 vehicles are same price as regular vehicles (few exceptions) • Biodiesel costs: B11 - about 15 to 20 cents less than diesel B20 – ranges from 2 cents to 20 cents more per gallon www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 10 Fuel Quality • E-85: Fuel quality not a concern • Biodiesel: Overall, few problems, but have heard about high glycerin levels at a few stations or some fleet fuel deliveries (need to ensure ASTM D6751 standards) www.ResponsiblePurchasing.org RPN Green Fleet Workshop Series 11 Green Fleet Workshop Illinois Green Fleets: Programs for E85 and Biodiesel Darwin Burkhart, Illinois EPA Hosted by the Responsible Purchasing Network www.responsiblepurchasing.org March 29, 2007