How to Green Your. Township Fleet. Sponsored by Maine Township Highway Department. Purpose. How to Green Your Township Fleet

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1 How to Green Your How to Green Your Township Fleet Township Fleet Purpose In an effort to make Maine Township more environmentally friendly, the Maine Township Highway Department (MTHD) partnered with Green Transportation Solutions (GTS), a green fleet consulting agency, to develop a program to reduce its impact on the environment while saving taxpayer dollars. The program, which will be highlighted in this manual, proves that any proactive highway department can make a positive impact on the environment with any sized budget. If you have the initiative, your township can improve air and water quality, reduce emissions and fuel usage, and save taxpayer money. Sponsored by Maine Township Highway Department

2 Purpose In an effort to make Maine Township more environmentally friendly, the Maine Township Highway Department (MTHD) partnered with a green fleet consulting agency named Green Transportation Solutions (GTS) to develop a program to reduce its impact on the environment while saving taxpayer dollars. The program, which will be highlighted in this manual, proves that any proactive highway department can make a positive impact on the environment with any sized budget. If you have the initiative, your township can improve air and water quality, reduce emissions and fuel usage, and save taxpayer money. Background Robert Provenzano Highway Commissioner Maine Township Highway Department Des Plaines, IL Robert Provenzano, along with a staff of seven fulltime employees, is responsible for one of the largest unincorporated areas in the State of Illinois with over 50 lane miles of roadway, approximately one-hundred streets and untold numbers of sewers and sidewalks. MTHD maintains, repairs, cleans and improves this infrastructure on a daily basis. MTHD works closely with residents, Homeowners Associations, the Township Code Enforcement Office, Cook County Sherriff s police and Neighborhood Watch Program to eliminate graffiti, garbage and abandoned cars from streets and sidewalks. Alexander Barton Founder/CEO Green Transportation Solutions (GTS) Park Ridge, IL GTS is committed to the use of new environmentally safe, fuel-efficient transportation options and specializes in consultation for fleet managers to incorporate vehicle technology and strategy into their fleets, while helping to navigate through the large amount of grant money and tax incentives available at the state and federal levels. GTS is based in Park Ridge, Illinois (part of Maine Township) and believes in being environmentally, socially and fiscally responsible.

3 Case Study: Maine Township Highway Department Goes Green In the initial evaluation of MTHD, GTS found that Robert Provenzano and his staff were already doing an excellent job saving fuel and cutting emissions. The fuels used to power the fleet were composed of renewable energy sources like ethanol (E-10 or 10% ethanol and 90% gasoline) and biodiesel (B-11 or 11% biodiesel and 89% #2 diesel). Plus, they already had a policy in place to reduce idle time. Idle-Reduction Policy: The current idle-reduction policy mandates that all township vehicles must be shut off while at the job site. This policy saved 680 gallons of fuel in a one year time period. Since every gallon of fuel burned releases about 22 pounds of CO2, the leading pollutant causing global warming, the Highway Department stopped 14,960 pounds of CO2 from entering Maine Township over the past year. TOTAL COST: $0 TOTAL SAVINGS: $1, (680 gallons of fuel at an average of $2.49/gallon) Increasing Biodiesel Blend to B-20: Following the GTS recommendation to increase the biodiesel blend percentage to B-20, the Highway Department reduced its petroleum usage by another 9% making for an average total of 30% domestic renewable fuel and 70% petroleum being used in their fleet. By increasing the biodiesel blend to B-20, the fleet also produced less CO2 since there is less carbon-based fuel being used. Also, B-20 was available from their current fuel distributor and could be used with no modifications to the current fleet of diesel trucks. The Highway Department is now eligible for a cash rebate from the State of Illinois and does not pay sales tax on its fuel since B-20 is classified as an Alternative Fuel. TOTAL COST: $.05/gallon increase or $375 annual total* TOTAL SAVINGS: Estimated 675 gallons of petroleum diesel* *Based on 2006 totals Tire Pressure Screening System: Another GTS recommendation was to incorporate a tire pressure screening system to make sure all vehicles are operating at the proper levels. This is done every week on Monday morning for each vehicle. By doing this, the Highway Department will reduce fuel consumption by an estimated 5% or 470 gallons. This also reduces fuel cost by an average of $1,000/year and stops an additional 11,000 pounds of CO2 from entering the local environment. TOTAL COST: $0 TOTAL SAVINGS: $1,170/year or 470 gallons* *Based on 2006 totals Vehicle Upgrades: MTHD has a vehicle scheduled to be upgraded in 2007 but GTS suggested waiting an additional year. In the 2008 model year, there will be at least two different full-size, dieselpowered hybrid work trucks available from the major auto manufacturers. It will be beneficial to wait until these are available because the fuel economy for hybrids increases by an estimated 25% and the technology would allow for no-idle operation when stopped. There will also be propane powered, Roush Ford F-150, F-250, F-350 trucks available in Propane is an approved, clean fuel and is one of the cleanest burning of all fossil fuels. EPA tests show that propane powered vehicles produce less carbon monoxide and fewer toxins and other smog-producing emissions than gasoline. TOTAL COST: $6,900 Extra cost for Roush Propane Conversion TOTAL SAVINGS: $4,000 Alternative Motor Vehicle Tax Credit available $1,000 Illinois Treasurer s Office Green Rewards Program Illinois Alternative Fuels Cash Rebate of 80% of incremental cost Federal Motor Fuel Excise Tax of $.50/gallon

4 Greening Your Township Fleet As a courtesy to all Illinois Township Fleet Managers, MTHD and GTS would like to outline a program to help you get started. The following program was designed to provide some direction on how you can start doing this today. Step 1: Step 2: Step 3: Step 4: Step 5: Evaluate the current status of fleet & equipment Calculate total fuel usage Consider possible funding Evaluate possible partnerships Develop an implementation plan Step 1: Current Fleet & Equipment This can be done with a program such as Microsoft Excel. You should include all on-road and off-road vehicles to have a complete report of your inventory. This will allow you to review your options for upgrades, compatible alternative fuels, upfits and conversion kits, etc. When deciding on alternative fuel options, search for available fuels in your area. It is cheaper to use an infrastructure that is already in place! Note: Please review the Useful Websites section for more information on where to find alternative fuel infrastructure. Step 2: Calculate total fuel usage If you have a fuel distributor they should be able to provide you with the total amount of fuel used. If not, you can calculate your consumption by adding up the receipts or invoices from your fuel purchases. This will provide you with a benchmark to show how much progress you will make. Step 3: Funding from Federal & State Grants There are grants and tax incentives from the State of Illinois and the Federal Government for all hybrid vehicles, alternative fuel vehicles and for infrastructure development. These can be utilized to offset some of the costs of converting the existing fleet and upgrades to fuel. Note: You can find more detailed information in the section titled Useful Federal & State Grant Information which is provided in this manual. Step 4: Identify Potential Partnerships Partnering up with another group or entity will help dilute the costs of upgrading fueling equipment, using alternative fuels or even creating a new infrastructure. Some possibilities would be local municipalities, park districts or even the general public. When considering the development of a new alternative fuel infrastructure, keep the general public in mind as possible fuel customers. They can help you get volume discounts with a larger total consumption of fuel. Plus, it helps bring alternative fuels to areas that need them and will allow the public greater options when choosing their next vehicle. Step 5: Implement the Plan This is the most important step because nothing will get done by planning alone. Actually using the new techniques and fuels will take the dedication of everyone. For instance, what good is a tire pressure screening system if nobody actually checks the tire pressure? Good leadership is essential to changing old habits, so be a leader and get involved. It also helps to provide incentive to drivers who comply with no idling, checking the tire pressure and changing their driving habits to increase miles per gallon. This can be tracked easily though a fuel card program or vehicle identification system. Note: Please review the Useful Websites section for more information on companies who provide these services.

5 Green Fleet Tips & Techniques Maintain Your Vehicles Develop Route Management Sitting in traffic burns gas and gets you nowhere. If possible, adjust your work or delivery schedule so you avoid rush hour traffic. There are new Global Positioning Systems (GPS) that can route your drivers around traffic to maximize productive trip time. Combine Trips According to the Department of Energy, several short trips taken from a cold start can use twice as much fuel as a longer, multipurpose trip covering the same distance when the engine is warm. A well-tuned vehicle burns less gasoline, so make sure that you use synthetic oil and change your air filters regularly. Also, keeping your tires properly inflated can increase your gas mileage by 5%. Drive Smarter When you drive fast and aggressively, you waste gas and put others at risk. Observe the speed limit, avoid rapid acceleration and braking, and maintain a constant speed. If you have a manual transmission, try coasting which is the same principal as riding a bike. When you ride a bike, you are not constantly pedaling and can utilize coasting when going down hill or coming up to a stop sign. Don t Idle Unnecessarily Since idling gets 0 m.p.g. turn your engine off when you can. If you are planning to idle for more than 10 seconds, it will save fuel to turn off you engine. This works well when waiting for a train! Lighten the Load According to the Department of Energy, a loaded vehicle can decrease fuel economy by approximately 5%. For example, every 100 pounds your drivers carry reduces a typical vehicles fuel economy by 1-2%. Buy Green Vehicles The most fuel-efficient vehicles on the road today are hybrid-electric. A hybrid combines an electric motor with a conventional, gasoline-powered engine which allows for incredible fuel economy. There are also vehicles that run on alternative fuels made from corn and soybeans. These fuels are cleaner for the air, made in America and even cost less. Imagine using 85% less gasoline by just changing your fuel to E-85!

6 Useful Federal & State Grant Information Alternative Motor Vehicle Credit Section 1341 of the Energy Policy Act of 2005 provides a tax credit to buyers of new alternative fuel vehicles placed in service as an alternative fuel vehicle after January 1, The legislation provides for a tax credit equal to 50% of the incremental cost of the vehicle, plus an additional 30% of the incremental cost for vehicles with near-zero emissions (SULEV or Bin 2 for vehicles <14,001 lb GVWR). The IRS has issued two notices to establish rules for manufacturers and qualified vehicle buyers to claim the credit. The Current Tax Credits table has information on certified vehicles and available credits. The credit is available on the purchase of light, medium, and heavy-duty vehicles and fuel-cell, hybrid, and dedicated natural gas, propane, and hydrogen vehicles. Light-duty lean burn diesel vehicles are also eligible. The tax credit is capped based on vehicle weight as follows: $5,000: 8,500 GVWR or lighter $10,000: 8,501-14,000 GVWR $25,000: 14,001-26,000 GVWR $40,000: 26,001 GVWR and heavier For non-tax-paying entities, the credit can be passed back to the vehicle seller. The tax credit can be applied to vehicle purchases made after December 31, The credit expires December 31, Alternative Fuel Infrastructure Tax Credit Section 1342 of the Energy Policy Act of 2005 provides a tax credit equal to 30% of the of cost alternative refueling property, up to $30,000 for business property. Qualifying alternative fuels are natural gas, propane, hydrogen, E85, or biodiesel mixtures of B20 or more. Buyers of residential refueling equipment can receive a tax credit for $1,000. For non-tax-paying entities, the credit can be passed back to the equipment seller. The credit is effective on equipment put into service after December 31, It expires December 31, 2009 (hydrogen property credit expires in 2014). This legislation also extends the Tax Deduction Timeline that was established by EPAct 1992, Section 179, and extended by the Working Families Tax Relief Act of In May 2006, the Internal Revenue Service (IRS) published Form 8911, which provides a mechanism to claim the infrastructure tax credit. Owners who install qualified refueling property on multiple sites can utilize the credit for each property. The instructions define what is considered qualified property and the value of the credit. See IRS Form 8911.

7 Alternative Fuel Vehicle (AFV) and Alternative Fuel Rebates The Illinois Alternate Fuels Rebate Program provides a rebate for 80% of the incremental cost of purchasing an AFV (up to $4,000), 80% of the cost federally certified alternative fuel vehicle conversions (up to $4,000), and for the incremental cost of purchasing alternative fuels. Eligible fuels for the program include E85, biodiesel blends of at least 20%, natural gas, propane, electricity, and hydrogen. To be eligible, a vehicle must be an on-road vehicle, licensed, and legal to be driven on public roads. For all rebates, the AFV, conversion system, or alternate fuel must be purchased from an Illinoisbased company or vendor. Hybrid electric vehicles are not eligible. The E85 fuel rebate is up to $450, or $340 per year (depending on vehicle miles traveled), for three years for each flexible fuel vehicle that uses E85 at least half the time. The biodiesel fuel rebate (B20 and higher blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to conventional diesel. The Rebate Program is open to all Illinois residents, businesses, government units (except federal government), and organizations located in Illinois. Biodiesel Tax Exemption Sales and use taxes apply to 80% of the proceeds from the sale of biodiesel-blended fuels (containing between 1% and 10% biodiesel) made between July 1, 2003, and December 31, However, if these taxes are ever imposed at a rate of 1.25%, then the tax on these biodiesel blends will apply to 100% of the proceeds of sales. These taxes do not apply to the proceeds from the sale of biodiesel blends containing more than 10% biodiesel made. The taxes apply to 100% of the proceeds from sales made thereafter. Hybrid Motor Vehicle Credit Section 1341 of the Energy Policy Act of 2005 provides a tax credit for light-duty hybrid vehicles (<8,501 lb GVWR) based on their improved fuel economy and their life-time fuel savings potential. The IRS will certify vehicles for the credit and publish qualifying credit amounts as vehicles are certified. The fuel economy portion of the credit is based on the following efficiency gains over model year 2002 baselines: 125%-149%: $ % -174%: $ %-199%: $1, %-224%: $1, %-249%: $2, %+: $2,400 The conservation credit increases the fuel economy credit based on the following lifetime fuel savings: 1,200-1,799 gal: $250 1,800-2,399 gal: $500 2,400-2,999 gal: $750 3,000 gal+: $1,000 To qualify for the credits, the vehicles must meet at least Bin 5 standards if they are up to 6,000 lb GVWR, or Bin 8 standards if the vehicles are 6,001 lb-8,500 lb GVWR. Heavy-duty hybrid vehicles are subject to the following incremental cost limitations: <14,001 GVWR: $7,500 14,001-26,000 GVWR: $15,000 26,001+ GVWR: $30,000 This tax credit replaces the tax deduction previously available to purchasers under the Clean Fuel Vehicle Property guidance. This tax credit expires December 31, The IRS issued guidance to automobile manufacturers in January Specifically, this notice provides procedures for a vehicle manufacturer to certify to the Internal Revenue Service both that the vehicle meets certain requirements for the credit and information to calculate the amount of the credit allowable with respect to that vehicle.

8 Useful Websites Alternative Fuel & Vehicle Institute Cool Driver Campaign Electric Cars Fuel Card Programs Green Car Journal GPS Fleet Tracking Systems Hybrid & Plug-In Cars Illinois E.P.A. Illinois Incentives & Laws National Biodiesel Board Renewable Fuels Association U.S. Department of Energy Alternative Fueling Station Locator Clean Fleet Guide U.S. Federal Incentives & Laws Conclusion We hope this will help you navigate through the various options currently available on the market today. If you need more help, please contact Alexander Barton with Green Transportation Solutions at Or feel free to visit our website at Maine Township Highway Department 1387 Redeker Road Des Plaines, IL Green Transportation Solutions 1007 S. Cleveland Avenue Park Ridge, IL

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