Empire Clean Cities Guide to Greening Your Fleet

Empire Clean Cities 55 Water Street, 9th Floor

New York, NY 10041 212-839-7728

http://www.empirecleancities.org/

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Benefits of Greening Your Fleet Companies reliant on their fleets need to ensure that those vehicles operate as efficient as possible. Reducing operating costs and environmental impacts are becoming a major priority for fleet managers and companies. New technologies and methods are improving vehicle efficiency and making fleets more reliable. Empire Clean Cities can help Green your fleet which, can cut operating costs, reduce greenhouse gas emissions, and improve your corporate reputation keeping you ahead of the game. The Empire Clean Cities “Steps for Greening Your Fleet” is a resource for fleet managers and companies created to guide you through the process of achieving a greener fleet and to receive recognition as an Empire Green Fleet. Each step was created to guide you through a process that can help you achieve the greatest environmentally friendly fleet and reach specific goals. Steps: Step 1: Measure emissions and set goals Step 2: Improve vehicle selection Step 3: Improve vehicle use Step 4: Educate employees Step 5: Provide public transportation incentives Step 6: Consider carbon offsets Step 7: Report progress Step 8: Establish infrastructure

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Steps for Establishing a Green Fleet

Step 1: Measure emissions and set goals1 Collect vehicle usage data to create a baseline.

Set goals and a timeline for your fleet based on the company’s operations and strategies

Step 2: Improve vehicle use2

Implement idle reduction programs.

Establish a car sharing program with employees.

Plan driver routes.

Construct Biofuel or Compressed Natural Gas stations.

Provide electric charging stations.

Provide Biodiesel infrastructure.

Step 3: Improve vehicle selection3

Create a menu of appropriate vehicles based on the operation needs of your company.

Select the most efficient vehicles.

Right size your fleet.

Use an alternative fuel rather than a conventional fuel when that option is available.

Step 4: Educate employees and provide incentives5 Provide educational material for employees.

Create a culture of sustainability by placing flyers and posters around the office.

Offer employee driver training courses.

Offer employees access to free public transportation.

Promote ridesharing among employees and allow closer parking spots.

Have bus and train routes posted around the office so employees can become familiar with how they operate.

Provide shuttle service to and from train stations.

Add bike parking and storage

Offer incentives such as free gas to employees that purchase alternative fuel vehicles.

Step 5: Consider carbon offsets7

1 http://business.edf.org/projects/fleet-vehicles/five-step-green-fleet-framework 2 http://business.edf.org/projects/fleet-vehicles/five-step-green-fleet-framework 3 http://business.edf.org/projects/fleet-vehicles/five-step-green-fleet-framework 5 http://www.afdc.energy.gov/conserve/driving_behavior.html

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Carbon offsets are a form of trade, when you buy an offset you fund projects that reduce greenhouse gas emissions.

Step 6: Report progress9 Allow employees, stakeholders, and the public to view the steps and

success you have accomplished from greening your fleet.

Resources www.empirecleancities.org

http://www.afdc.energy.gov/

http://www.edf.org/

http://www.fueleconomy.gov/

New York State Incentives

Federal Incentives

Types of Alternative Fuels

Other Strategies

7 http://business.edf.org/projects/fleet-vehicles/five-step-green-fleet-framework 9 http://business.edf.org/projects/fleet-vehicles/five-step-green-fleet-framework

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Empire Green Fleets

Empire Green Fleets is a program established to improve the environmental performance of public and private fleets of vehicles operating in New York City and the Lower Hudson Valley. Becoming a certified Empire Green Fleet can help a fleet reduce

Costs

Improve company recognition

Decrease a fleet’s carbon footprint. We work in coordination with fleet managers to track vehicle use information and develop strategies that reduce fuel costs, improve vehicle efficiency, and decrease the fleet’s environmental impact.

For more information on Empire Green Fleets visit our website http://www.empirecleancities.org/egf-2/ or contact Empire Clean Cities 212-839-

7728 or email info@empirecleancities.org

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New York State Incentives

Alternative fuel tax exemption: E85, compressed natural gas, and hydrogen fuel that is used exclusively to operate a motor vehicle engine is exempt from state sales and use taxes. Additionally, cities and counties may reduce the sales and use tax imposed on 20% biodiesel blends (B20) to 80% of the diesel fuel tax rate. The exemption and rate reduction are in effect until September 1, 2014. (Reference Assembly Bill 4011, 2011, and New York Tax Law 1111 and 1115)

Idle Reduction Weight Exemption: Any motor vehicle equipped with qualified idle reduction technology may exceed the state's vehicle weight limits by up to 400 pounds to compensate for the added weight of the idle reduction technology. The vehicle's operator must maintain written certification of the device's weight and proof that it is fully functional and must provide such proof to a law enforcement officer, upon request. (Reference New York Vehicle and Traffic Law 385)

Biofuel Fueling Infrastructure Funding: The New York State Energy Research and Development Authority (NYSERDA) administers the Biofuel Station Initiative Program, which provides funding to retail fueling stations offering E85 and biodiesel blends in the state, and to petroleum terminal operators to store, blend, and dispense biofuels. NYSERDA provides a reimbursement of up to 50% of new biofuel dispensing installation costs, including equipment, storage tanks, and associated piping equipment, up to $50,000 per site. NYSERDA also provides a cost reimbursement of up to 50% for new biofuel storage, handling, blending, and rack dispensing equipment, including installation costs, up to $150,000 per site. NYSERDA accepts applications from public access retail fueling station owners and operators in the state. Funding is limited and does not cover facility permitting or engineering costs. A 50% cost-shared technical assistance is also available for the following: technical review of design and construction specifications for the biofuel equipment; analysis of existing and proposed equipment; preparation and submission of requests for biofuel specific permits and waivers to local and state code officials; and facility staff training. For more information, see the NYSERDA Transportation Programs website.

High Occupancy Vehicle (HOV) Lane Exemption: Through the Clean Pass Program, eligible electric vehicles and hybrid electric vehicles may use the Long Island Expressway HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, available from the New York State Department of Motor Vehicles. For a list of eligible vehicles, see the Clean Pass Program website.

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Natural Gas Vehicle Financial Incentives: Con Edison operates nine CNG refueling stations in New York City and Westchester County, five of which are open to the public. Con Edison offers a variety of financially based incentives to help customers acquire NGVs and/or construct CNG refueling stations. For more information, (http://www.afdc.energy.gov/laws/law/NY/4620).

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Federal Incentives

Advanced Biofuel Feedstock Incentives: The Biomass Crop Assistance Program provides financial assistance to landowners and operators that establish, produce, and deliver biomass feedstock crops for advanced biofuel production facilities. A reimbursement of 75% of the cost of establishing a biomass feedstock crop to qualified feedstock producers as well as annual payments for up to five years for herbaceous feedstocks and up to 15 years for woody feedstocks. For more information see the Department of Energy Laws and Incentives website http://www.afdc.energy.gov/laws/law/US/10292 or the Biomass Crop Assistance Program website http://www.fsa.usda.gov/FSA/webapp?area=home&subject=ener&topic=bcap

Advanced Biofuel Production Grants & Loan Guarantees: The Biorefinery Assistance Program provides loan guarantees for the development, construction, and retrofitting of commercial scale biorefineries that produce advanced biofuels. Advanced biofuel is defined as fuel derived from renewable biomass other than corn oil starch. Eligible applicants include individuals, state or local governments, farm cooperatives, national laboratories, institutions of higher education, and rural electric cooperatives. $250 million is the maximum loan guarantee and the maximum grant funding is 50% of project costs. For more information see the Biorefinery Assistance Program http://www.rurdev.usda.gov/BCP_Biorefinery.html

Advanced Biofuel Production Payments: Eligible producers of advanced biofuels, or fuels derived from renewable biomass other than corn kernel starch may receive payments to support expanded production of advanced biofuels. No more than 5% of the funds will be made available to eligible producers with an annual refining capacity of more than 150,000,000 gallons of advanced biofuel. Check out the Bioenergy Program for Advanced Biofuels website for more information http://www.rurdev.usda.gov/BCP_Biofuels.html

Advanced Energy Research Project Grants: The Advanced Research Projects Agency – Energy (ARPA-E) focuses on various concepts in the areas of vehicle technologies, biomass energy, and energy storage. For more information on funding opportunities visit http://arpa-e.energy.gov/?q=faq/current-funding

Advanced Technology Vehicle (ATV) Manufacturing Incentives: Through the Advanced Technology Vehicles Manufacturing Loan

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Program, ATV and ATV components manufacturers may be eligible for direct loans for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs or ATV components. Qualified ATVs are light-duty vehicles or ultra-efficient vehicles that meet federal emission standards and fuel economy requirements.

Alternative Fuel Tax Exemption: Alternative fuels used in a matter that the IRS deems as nontaxable are exempt from federal fuel taxes.

Biobased Transportation Research Funding: The Surface Transportation

Research, Development, and Deployment (STRDD) Program funds activities to promote innovation in transportation infrastructure, services, and operations. Funding is made available for the Biobased Transportation Research program for Biobased research of national importance. Check out the Surface Transportation Research, Development, and Deployment Program http://www.fhwa.dot.gov/safetealu/factsheets/str.htm

Biobased Education Grants: Grants are available to educate governmental

and private entities that operate vehicle fleets, the public, and other interested entities about the benefits of biodiesel fuel use. Point of Contact Office of Rural Development, Business and Cooperative Programs U.S. Department of Agriculture Phone: (202) 690-4730 http://www.rurdev.usda.gov/

Biomass Research & Development Initiative: Provides grant funding for projects addressing research, development, and demonstration of bio fuels and biobased projects and the methods, practices, and technologies for their production. The award process focuses on three main technical areas, Feedstock development; biofuels and biobased product development; biofuels development analysis. Eligible applicants are institutions of higher learning, national laboratories, federal research agencies, private sector entities, and nonprofit organizations. For more information see http://www.usbiomassboard.gov/

Cellulosic Biofuel Producer Tax Credit: A cellulosic biofuel producer registered with the IRS may be eligible for a tax incentive in the amount of up to $1.01 per gallon of cellulosic biofuel that is sold and used by the purchaser in the purchaser's trade or business to produce a cellulosic biofuel mixture; sold and used by the purchaser as a fuel in a trade or business; sold at retail for use as a motor vehicle fuel; used by the producer in a trade or business to produce a cellulosic biofuel mixture; or used by the producer as a fuel in a trade or business

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Ethanol Infrastructure Grants and Loan Guarantees: The maximum loan guarantee is $25 million and the maximum grant funding is 25% of project costs. Eligible renewable energy systems include flexible fuel pumps, or blender pumps, that dispense intermediate ethanol blends. http://www.rurdev.usda.gov/BCP_ReapResEei.html

Fuel Cell Motor Vehicle Tax Credit: A tax credit of up to $4,000 is available for the purchase of qualified light-duty fuel cell vehicles. Tax credits are also available for medium- and heavy-duty fuel cell vehicles. Credit amounts are based on vehicle weight, this tax credit expires on December 31,2014. Point of Contact U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/

Hydrogen Fuel Excise Tax Credit: A tax credit of $0.50 per gallon is available for liquefied hydrogen that is sold for use or used as a fuel to operate a motor vehicle. Eligible entities must be registered with the IRS. The incentive must first be taken as a credit against the entity’s alternative fuel tax liability. The credit for liquefied hydrogen expires after September 30, 2014. Point of Contact Excise Tax Branch U.S. Internal Revenue Service Office of Chief Counsel Phone: (202) 622-3130 http://www.irs.gov/

Hydrogen Fuel Infrastructure Tax Credit: A tax credit is available for the cost of hydrogen fueling equipment placed into service after December 31, 2005. The credit amount is up to 30% of the cost, not to exceed $30,000. Credit is allowed to be used at multiple locations if fueling station owners install qualified equipment at multiple sites. Consumers who purchase qualified residential fueling equipment may receive a tax credit up to $1,000. This credit expires December 31, 2014. Point of Contact U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/

Hydrogen Fuel Mixture Excise Tax Credit: A tax credit of $0.50 per gallon is available for the sale or use of liquefied hydrogen used to produce a mixture containing a taxable fuel. Eligibility requires that an alternative fuel blender be registered with the IRS. The credit expires September 30, 2014.

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Point of Contact Excise Tax Branch U.S. Internal Revenue Service Office of Chief Counsel Phone: (202) 622-3130 http://www.irs.gov/

Idle Reduction Equipment Excise Tax Exemption: Qualified on-board idle reduction devices and advanced insulation are exempt from the federal excise tax imposed on the retail sale of heavy-duty highway trucks and trailers. The exemption also applies to the installation of qualified equipment on vehicles after the vehicles have been placed into service. Only equipment sold on or after October 4, 2008 is eligible. Point of Contact Excise Tax Branch U.S. Internal Revenue Service Office of Chief Counsel Phone: (202) 622-3130 http://www.irs.gov/

Improved Energy Technology Loans: The Department of Energy provides loans to eligible projects that reduce air pollution and greenhouse gases, and support early commercial use of advanced technologies, including biofuels and alternative fuel vehicles. Loan guarantees may be issued for up to 100% of the amount of the loan for an eligible project. Point of Contact U.S. Department of Energy Phone: (202) 586-5000 Fax: (202) 586-4403 http://www.energy.gov

Qualified Plug-In Electric Drive Motor Vehicle Tax Credit: A tax credit is available for a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least four kilowatt hours of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. This tax credit applies to vehicles acquired after December 31, 2009. Point of Contact U.S. Internal Revenue Service Phone: (800) 829-1040 http://www.irs.gov/

Value-Added Producer Grants (VAPG): Created to help independent agricultural producers enter into or expand value-added activities,

including innovative uses of agricultural projects, such as biofuel production.

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Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority controlled producer-based business ventures. Participants may apply for either a planning grant or a working capital grant, but not both. In addition, no more than 10% of program funds may be awarded to majority-controlled producer-based business ventures.

Section 30c Credit for Alternative Fuel Vehicle Refueling Property: The recent fiscal cliff deal passed by Congress includes tax credits for purchases and installation of electric vehicle charging stations. A 30 percent credit, capped at $30,000 for business/investment* use per site and $1,000 for personal use. For more information, please visit: US CODE: http://www.law.cornell.edu/uscode/text/26/30C And download: 2011 IRS FORM: http://www.irs.gov/pub/irs-pdf/f8911.pdf (Subject to change, updated by the IRS) *This credit is not available to cities, schools, or other non-taxpayers. Please consult with your tax advisor to determine your eligibility.

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Types of Alternative Fuels Biodiesel Ethanol Electric Natural Gas Hydrogen Propane

Biodiesel (B5 – B20)10 Biodiesel is a domestically produced, renewable fuel that can be manufactured from vegetable oils, animal fats, or recycled restaurant grease. It is a cleaner-burning replacement for petroleum diesel fuel. It is both nontoxic and biodegradable. Biodiesel is a liquid fuel made up of fatty acid alkyl esters, fatty acid methyl esters, or long-chain mono alkyl esters. Like petroleum diesel, biodiesel is used to fuel compression-ignition engines. The cold-flow properties of biodiesel blends vary depending on the amount of biodiesel in the blend. The smaller the percentage of biodiesel in the blend, the better it performs in cold temperatures. Regular No. 2 diesel and B5 perform comparably in cold weather. Both biodiesel and No. 2 diesel have some compounds that crystallize in very cold temperatures. In winter weather, manufacturers combat crystallization in No. 2 diesel by adding flow improvers. For the best cold weather performance, drivers should use B20 made with No. 2 diesel manufactured for cold weather (http://www.afdc.energy.gov/fuels/biodiesel_basics.html).

Ethanol11 Ethanol is a renewable fuel made from various plant materials collectively known as "biomass." More than 95% of U.S. gasoline contains ethanol in a low-level blend to oxygenate the fuel and reduce air pollution.

Ethanol is also available as E85, a high-level ethanol blend. This alternative fuel can be used in flexible fuel vehicles which, has an internal combustion engine and can run on either E85 or gasoline (http://www.afdc.energy.gov/fuels/ethanol_fuel_basics.html).

Electric12 In plug-in electric vehicles, onboard rechargeable batteries power electric motors. Vehicles that run only on electricity produce no tailpipe emissions. However, there are emissions associated with the production of most of the country's electricity. Fueling plug-in vehicles with electricity is currently cost effective compared to gasoline, especially if drivers take advantage of off-peak rates offered

10 http://www.afdc.energy.gov/fuels/biodiesel.html 11 http://www.afdc.energy.gov/fuels/ethanol.html 12 http://www.afdc.energy.gov/fuels/electricity.html

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by many utilities. Electricity costs can vary by region, type of generation, time of use, and access point. (http://www.afdc.energy.gov/fuels/electricity_basics.html).

Natural Gas (CNG) (LNG)13 Two forms of natural gas are used in vehicles: CNG and LNG. Both are clean-burning, domestically produced, relatively low priced, and widely available. Because of the gaseous nature of this fuel, it must be stored onboard a vehicle in either a compressed gaseous (CNG) or liquefied (LNG) state. Natural gas is sold in units of diesel or gasoline gallon equivalents (GGEs) based on the energy content of a gallon of gasoline or diesel fuel. Compressed Natural Gas A CNG-powered vehicle attains a comparable fuel economy as a conventional gasoline vehicle on a gasoline gallon equivalent basis. A GGE equals about 5.66 pounds of CNG. CNG is used in light-, medium-, and heavy-duty applications. Liquefied Natural Gas LNG is produced by purifying natural gas and super-cooling it to -260°F to convert it to a liquid state. Because it must be kept at cold temperatures, LNG is stored in double-walled, vacuum-insulated pressure vessels. LNG is good for trucks needing a longer range because liquid is more dense than gas (CNG) and, therefore, more energy can be stored by volume in a given tank. LNG is typically used in medium- and heavy-duty vehicles; a GGE equals about 1.5 gallons of LNG (http://www.afdc.energy.gov/fuels/natural_gas_basics.html).

Hydrogen14 The interest in hydrogen as an alternative transportation fuel stems from its clean-burning qualities, its potential for domestic production, and the fuel cell vehicle's potential for high efficiency—it's two to three times more efficient than a gasoline vehicle. The energy in 2.2 pounds (1 kilogram) of hydrogen gas is about the same as the energy in 1 gallon of gasoline. Because hydrogen has a low volumetric energy density, it is important for a fuel cell vehicle to store enough fuel onboard to have a driving range comparable to conventional vehicles. Some hydrogen storage technologies are available and undergoing more research and demonstration. These technologies include compressing gaseous hydrogen in high-pressure tanks at up to 10,000 pounds per square inch and cooling liquid hydrogen cryogenically to -

13 http://www.afdc.energy.gov/fuels/natural_gas.html 14 http://www.afdc.energy.gov/fuels/hydrogen.html

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423°F (-253°C) in insulated tanks. Other storage technologies are under development, including bonding hydrogen chemically with a material such as metal hydride (http://www.afdc.energy.gov/fuels/hydrogen_basics.html)

Propane15 Propane is a clean burning, alternative fuel used to power light, medium, and heavy duty propane vehicles. It is considered an alternative fuel under the Energy Policy Act of 1992. Interest in Propane stems from its domestic availability, high-energy density, clean-burning qualities, and relatively low cost. When propane is sold as a vehicle fuel it can be mixed in smaller amounts with other gases. Propane has a higher octane rating than gasoline but has a lower BTU rating than gasoline, so it takes more fuel to drive the same distance. However, propane’s clean burning characteristics allow the engine to have increased service life (http://www.afdc.energy.gov/fuels/propane_basics.html).

Other Strategies

15 http://www.afdc.energy.gov/fuels/propane.html

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Idle Reduction Idle reduction describes technologies and practices that reduce the amount of time drivers idle their engines. According to the Department of Energy Alternative Fuel Data Center U.S. passenger cars, light trucks, medium-duty trucks, and heavy-duty vehicles consume more than 6 billion gallons of diesel fuel and gasoline without even moving. Implementing idle reduction technologies such as onboard idle reduction equipment, air heaters, coolant heaters, energy recovery systems, battery/auxiliary power systems, automatic power management systems, and practices into your fleet can significantly reduce your companies’ fuel costs. Car Sharing Creating a car sharing program can help with promoting better driver behavior and save employees money. Vehicles that see limited use in a fleet should be considered as part of a company car sharing program. Employees can benefit from saving money by using a company car that would otherwise not be in use. Ridesharing Encouraging employees to participate in rideshare programs can reduce fuel, vehicle emissions, travel costs, and traffic. Further incentives could be to offer financial incentives and provide parking preferences. Public Transportation Public transportation includes buses, rail, ferries, bus rapid transit, trolleys, and subways. All of these alternatives to cars are gaining momentum as becoming a normal mode of traveling to work. Offering employees passes and transit subsidies are ways to gain recognition as a company that cares about the environment and their carbon footprint. Some employees may not be familiar with how public transportation operates, place schedules and routes around the work place to make it easier for employees to understand how to use this mode of transportation. Plan Driver Routes Planning driver routes is an easy and cost effective way for a fleet to save money and fuel. Mapping out routes with the least stops and traffic before sending out drivers is an easy way to reduce miles driven, vehicles used for routes, and time spent in traffic. Educational Materials for Employees Placing flyers and posters around the office and offering classes may help lower your employees’ carbon footprint. Creating a culture of sustainability can help employees adjust easier to making sustainability apart of their everyday routines. Placing posters in prominent locations showing the companies goals that have been achieved, the cost savings, lowered emissions, and how reducing their carbon footprint is helping the community, can let employees know that

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implementing a green fleet has been a good investment for them and the community. Providing employees with classes on how to operate a greener fleet can benefit the environment and the company financially. Teaching employees about better driving techniques may reduce idling, speeding, shifting frequently or improperly, accelerating, and braking aggressively. Also teaching drivers about combining trips, reducing their loads, and maintaining their vehicles can all benefit a fleets operation. Right Sizing Fleet Right Sizing your fleet should involve evaluating the business case of each vehicle. Why do we have this vehicle? Do we still use this vehicle? Are there other areas where we could enhance this vehicles use? Is retrofitting this vehicle worth the investment? These are questions fleet managers should be asking about all of their vehicles. By optimizing fleet size managers can help minimize vehicle use and conserve fuel, saving the company money.

For more information visit our website http://www.empirecleancities.org/ or

contact us at 212-839-7728. Empire Clean Cities

55 Water Street, 9th Floor New York, NY 10041