Transcript Purpose and Learning Objectives

Case Studies in Green Fleet Management
September 17, 2009
Facilitator:
Carol Boutin
Program Manager
Workshop Agenda
8:30
9:00
9:30
10:00
10:15
10:45
11:00
11:45
Introduction / Trends in green fleet mgmt
Terry Robert, Fraser Basin Council
Case study review
Coffee
Doug Smith, City of Vancouver
Fleet sustainability best practice
Melody Bennett, King County, WA
Recap discussion, evaluation, wrap-up
About the BuySmart Network
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in business and government
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sustainability goals and drive this mandate
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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
QuickTime™ and a
decompressor
are needed to see this picture.
Vehicle
Journey
Driver
General Trends in Greening
Fleets
PHH Arval Study Results
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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 fourcylinder 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 Council
Medium 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
Rod Hull,
A/Purchasing Manager
604 864 5616
[email protected]
www.lean.org
 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
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
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Green Fleet Implementation Plan approved in 2005
– Linked to VISION 2020 Goals, Transportation Master Plan, and Roadmap to
Sustainability
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Central Fleet Advisory Committee is large and cross functional
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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
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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 Result
Increase use of hybrids
46 new vehicles
105 new vehicles
Hybrid ghg emissions
Reduced 111 tonnes
Reduced 210 tonnes
Use 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
www.drivingchange.o
rg
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Piloting the first internet based vehicular ghg
management system
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Provides a platform for measuring emissions,
implementing reduction goals
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Free program to participating Denver city
employees and citizens
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Two ghg measuring devices installed on vehicle,
transmitting data to a “dashboard” on the system
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Participants can easily track emissions and
driving behaviour causing the emissions
Car Sharing: City of Philadelphia
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City employees traded in vehicles for
access to car share, with onboard
tracking computers and automated
reservation system
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Results:
– Reduced 330 vehicles from fleet
– Saved $1.8 million / year
Fleet Management Goals:
– Reduced “non-business” use
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– Increased transit use
Reduce fleet size
Address culture of entitlement
Allocate resources efficiently
Cost reduction
– No hindrance in ability to do work
– Attracting more non-City users to
car sharing
Car Sharing: City of Philadelphia
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City employees traded in vehicles for
access to car share, with onboard tracking
computers and automated reservation
system
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Results:
– Reduced 330 vehicles from fleet
– Saved $1.8 million / year
Fleet Management Goals:
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Reduce fleet size
Address culture of entitlement
Allocate resources efficiently
Cost reduction
– Reduced “non-business” use
– Increased transit use
– No hindrance in ability to do work
– Attracting more non-City users to car
sharing
Take a break!
Guest Speaker:
Doug Smith, City of Vancouver
Car Sharing and other Green Fleet
Initiatives
with 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
www.sanjoseca.gov/esd/PDFs/
GreenFleetPolicy_091707.pdf
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Linked to Urban Environmental Accords commitment:
25% reduction in ghg’s by 2030 as well as
Environmentally Preferable Procurement Policy
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Secondary objectives to decrease fuel usage, total fuel
costs, total cost of fleet ops per vehicle
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Uses 2002-03 as baseline
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Green Fleet Team established
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Requires a complete vehicle inventory
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Strategies include optimizing fleet size, reducing vehicle
size, increase use of alternative fuels/equipment, best
practices to minimize vehicle miles traveled
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Aims to reduce other environmental impacts
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Annual reporting
Guest Speaker:
Melody Bennett, King County,
WA
Greening King County’s Fleet
Wrap-up and Evaluation
www.buysmartbc.com
www.greenfleetsbc.com
www.e3fleet.com
www.idlefreebc.com
www.biofleet.net
www.hybridexperience.com