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
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C’WOF CARLSBAD - AGtNvtllLL ’Y /
AB#- TITLE:
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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.
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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
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implement and carry out the purposes of this resolution. I
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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
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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