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 Gasoline Units Propane Units Non-Fuel Units
929 pieces 1,670 pieces 138 pieces 995 pieces
Annual Fuel Use: – Diesel Fuel – Gasoline – Propane
1,000,000 gallons/year 1,200,000 gallons/year 17,000 gallons/year
Uncertainty of Fuel Costs Gas: Low $1.48 High $3.87
Diesel:
Fuel Cost Since 1/1/08 with Min and Max Costs Noted Unleaded
Diesel
Low $1.78 High $4.68
LPG
5.00 4.68 4.50 4.00 Diesel 2.69
3.50 3.87 3.00
Cost
2.17
1.78
2.50 2.00
Unleaded 2.25
1.50
1.48
1.00 1.06 0.50
LPG 1.13
0.00
08 08 08 09 09 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 /2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/ 20 /2/ 20 /2/ 20 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/2 0 /2/ 20 /2/ 20 2 / 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 10 11 12 10 11
Date
Biodiesel Use, 2006 - Present
Over 650,000 gallons used 102,750 gallons in 2012
Various blends used; B2-B20
Supplement ULSD fuel
Partially subsidized
Biodiesel Sources Inexpensive
Typical Sources
Gel Point
Palm Kernel Oil Animal Fats Corn Oil Soybean Oil Canola Oil
50° 45° 40° 32° 28°
Expensive
Other Sources
Rapeseed oil Used cooking oil Cottonseed oil Sunflower oil Algae (April 2008)
F F F F F
Biodiesel Quality
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 Pros 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 Cons Increase in cost versus petroleum diesel. Not suitable for long-term storage. Increased storage tank maintenance required. Can clog fuel filters quickly upon introduction.
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
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
Cold Weather Specifications Work with your fuel vendor to maintain fuel consistency in cold weather situations. 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 $______________
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.
In Closing 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.
Questions?
