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HomeMy WebLinkAbout1996-06-18; City Council; 13697; PETROLEUM VIOLATION ESCROW ACCOUNT FUNDING FOR THE CITY OF CARLSBAD VEHICLE FLEET ALTERNATIVE FUEL PROJECT FOR 1996-1997r 5 .. Z e, i= o a ZT -4 2 g 0 C’WOF CARLSBAD - AGtNvtllLL ’Y / AB#- TITLE: MTG. DEPT. RECOMMENDED ACTION: PVEA FUNDING FOR THE CIN OF CARLSBAD DEPT. H CITY AT CITY Mc 611 8/96 VEHICLE FLEET ALTERNATIVE FUEL PROJECT CSD FOR 1996-1 997 Adopt Resolution No. Commission to receive a $72,000 appropriation from the Petroleum Violation Escrow Acc purchase vehicles that utilize compressed natural gas (CNG) as fuel. ITEM EXPLANATION: Beginning in 1983, funds became available to the states as a result of alleged oil company vi1 of the federal oil pricing controls that were in place from 1973 to 1981. These funds are kr Petroleum Violation Escrow Account (PVEA) funds, or oil-overcharge funds. PVEA funds are available to provide indirect restitution to energy conwmerc through a V: energy related programs. The California Energy Commission (C.E.C.) is the designated ag distribute the majority of PVEA appropriations for the State of California. The C.E.C. solicits I from various public agencies which have projects that can be funded through the PVEA p The C.E.C. submits an annual plan to the Department of Energy in the spring for the upcomir year. The City of Carlsbad Vehicle Fleet Alternative Fuel Project was submitted to Assemblyr Morrissey in June, 1995. Assemblyman Morrissey’s office submitted the City of Carlsbad’: to the California Energy Commission to be included in the 1996-1 997 program. Fleet Maintenance received a letter dated May 6, 1996 from the California Energy Cor notifying the City of Carlsbad that its project has received approval for funding (copy attached as Exhibit 2). Also attached is a copy of the Alternative Fuel Project (Exhibit 3) w City of Carlsbad submitted to the California Energy Commission. The final step before receiving an appropriation of $72,000 from the PVEA is to exe agreement between the California Energy Commission and the City of Carlsbad. In ords California Energy Commission to enter into an agreement with the City of Carlsbad, the C pass a resolution from the governing body of the City of Carlsbad designating its represer execute, implement and carry out the agreement. The California Energy Commission will inc City’s resolution as an exhibit to its agreement, and will forward the agreement to the Carlsbad for Council approval at a regularly scheduled meeting. FISCAL IMPACT: There is no fiscal impact to the City of Carlsbad. The City will receive from the Californk Commission a check for $72,000 to reimburse the City for the purchase of four alternative fu vehicles. EXHIBITS: 1. Resolution No. %-~7/3 . 2. 3. 76-J/3 to meet the first requirement of the California Letter from California Energy commission dated May 6, 1996. Copy of City of Carlsbad Vehicle Fleet Alternative Fuel Project. L. 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 15 16 17 18 19 m 0 RESOLUTION NO. 96-213 RESOLUTION OF ME CITY COUNCIL OF ME CITY OF CARLSBAD, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE CALIFORNIA ENERGY COMMISSION TO APPROPRIATE FUNDS FROM THE PETROLEUM VIOLATION ESCROW ACCOUNT FOR ME PURPOSE OF PURCHASING ALTERNATIVE FUEL VEHICLES. WHEREAS, Assembly Bill 1671, Chapter 980, Statutes of 1995 included appropriations from the Petroleum Violation Escrow Account to the California Energy Commission for legislatively mandated projects; and WHEREAS, Assembly Bill 1671 requires that such legislatively mandated project completed through a grant between the California Energy Commission and the recipier agency; WHEREAS, the City of Carlsbad desires to implement its project for the purchac alternative fuel vehicles; and WHEREAS, there is a requirement to execute a resolution to approve an agreen between the California Energy Commission and the City of Carlsbad's governing body. NOW THEREFORE, BE IT RESOLVED, that the City Manager is hereby authorizc and empowered to execute in the name of the City Council of the City of Carlsbad an 1 agreement with the California Energy Commission and all other necessary documents 20 21 22 23 24 25 26 27 28 implement and carry out the purposes of this resolution. I ~ Ill Ill Ill Ill i It1 Ill j Ill i 1 2 3 4 5 6 7 a 9 10 11 12 13 14 l5 16 17 l8 19 20 21 22 23 24 25 26 27 28 m 0 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council c City of Carlsbad, California held on the 18th day of JUNE , 1996 the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None ABSTAIN: None ATTEST: AUu R. Q- ALETHA L. RAUTENKRANZ, City Clerk (SEAL) I 1 iI EXHII STATE OF CALIFORNIA-THE RESOURCES AG @Y 0 PETE WlLSOl . CALIFORNIA ENERGY COMMISSION 1516 NINTH STREET SACRAMENTO, CA 95814-5512 May 6, 1996 Lawrence Willey Fleet Superintendent City of Carlsbad - Fleet Operations 2480 Impala Drive Carlsbad, CA 92008 Dear Mr. Willey: The Energy Commission is pleased to inform you that the Department of Energy (DOE) has approved your appropriation of PVEA funding for the City of Carlsbad Vehicle Fleet Alternative Fuel Project. A copy of the approved DOE proposal is enclosed. At a Business Meeting held at the Energy Commission on April 24, 1996, the Commission also approved a resolution describing the process for PVEA members requests. The Energy Commission may soon be contacting you for the purpose of constructing and executing your grant agreement. Please remember that before entering into a gram agreement with the Energy Commission, we must receive a resolution from your governing body. (A sample resolution is enclosed.) If you have any additional questions or require further assistance, please contact Karla Fillion Energy Commission Project Manager, at (916) 657-4808 or Lisa Johnson (916) 654-4276 Contracts, Grants and Loans Office. Sincerely, &k SUSAN AR NHALT Grants and Loans Office cc: Karla Fillion Energy Commission Project Manager I--Ls.-YLI d I / 0 \ 0 AA. CITY OF CARLSBAD VEHICLE FLEET ALTERNATIVE FUEL PROJECT 1. Program Statement [AB 1671, Chapter 980, Statute! of 1995, $72,000 (Exxon) This project involves the replacement of four fossil fuel burning vehicles with four dedicated alternative fuel burning vehicles. The alternative fuel proposed is compressed natural gas (CNG). This project will result in a significant savings of gasoline with potential savings on maintenance due to cleaner burning fuel. The City of Carlsbad currently has two CNG vehicles which have proven to be reliable and energy efficient. The City of Carlsbad has access to a compressed natural gas fueling facility located at the San Diego Gas and Electric yard on Cannon Road in Carlsbad, which is central to all city operations. The addition of four new CNG vehicles will increase the City of Carlsbad’s fleet of alternative fue vehicles to six and result in a considerable reduction of emissions produced by thc fleet without reducing performance or increasing maintenance costs. End-Use Sector: Transportation Kev Words: CNG Alternative Fuels Emission Reduction Leveraged FundsPartnerships: None 2. Goals and Stratem The goal is to replace four gasoline vehicles with four CNG vehicles. The purpos< the C.A.A.A. Clean Air Act Amendments of 1990 to improve the air quality of San Diego County. of the replacement is to reduce the amount of fossil fuel used and begin to meet 3. Energy Savings - and Benefits Annual gasoline savings: 7,150 gallonstyear Anticipated fuel savings calculation: Given: Annual truck mileage: 57,200 miles (4 units) Average truck fuel consumption rate: 8 miles/gallon Truck fuel: gasoline 4 units 57,200 mileshear = 7,150 gallonstyear 8 miles/gallon Estimated energy savings per gallon of displaced gasoline: 115,400 BTU per gallo SECP XIX A2 v-8AA-2 January 199 a e * Total: 7,150 x 115,400 = 825,110,000 BTU Carlsbad is a full serviceflight industry city located 45 miles north of downtown San Diegc on the coast of the Pacific Ocean. The vehicles owned by the City of Carlsbad serve the entire population of approximately 65,000 residents of the city. Restitution will be provided to injured parties by reducing the volume of emissions produced and the amoun to operate and maintain CNG vehicles without significantly reducing performance. 4. Current Year 1995/96 Activities a. Goals/Approach The goals for fiscal year 1995/96 are to execute a grant agreement between the Energy Commission and the City of Carlsbad and begin the purchase of dedicated CNC vehicles. b. Strategies 1. The Energy Commission will execute an agreement with the City of Carlsbad (April 1996). City of Carlsbad will release RFP for dedicated CNG vehicles (May 1996). 2. C. Energy Savings No energy savings will occur in fiscal year 1995/96 as the program will not begin implementation until fiscal year 1996/97, d. Current Year Budget ($72,000) 1. Grant ($72,000): The Energy Commission will execute a grant agreement with the City of Carlsbad to implement the program. SECP XIX A2 V-8AA-2 January 1996