SR-508-003-01
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Santa Monica~alifornla, August 182 1981
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TO:
Mayor and City Councll
5P,&,~p,t)3-o/ G -- ~
FROM:
City Staff
AUG 2 5 1981
SUBJECT: Conversion of City Vehicles to Propane Fuel
Introduction
This report reconmends that City Council appropriate $18,000 to the tJlechanical
Maintenance Division to convert 18 City vehicles to propane fuel.
Background
Staff has been investigating the use of lower cost fuels for City veh1cles.
The fuels considered include: propane, compressed natural gas, and gasohol.
The following 1S a discussion of the pros and the cons of each.
Propane
Converslon to any alternative fuel
'~"r:;;....Ch.
~4D.--f'~r:
. _/ ~J'-' j '....oF V """"'(::")
to the standard
gasoline engine. Each fuel has vc
sion k1ts and installation fees pf
~~
60g ;003-01
on. Propane conver-
\ fuel dispenslng
tank and pump can be leased annua
ition, special veh1cle
permits are required by the State for vehicles usfngl1on-standardized fuels.
The advantages of uSlng propane are:
. Reductlon of dangerous exhaust emissions.
. Reduction of oil contaminants resulting in
extended engine life.
. Significantly lower fuel costs.
The major complaint resulting from the use of propane-fueled vehicles lS the
reduction of power during acceleration. However, City operations do not require
high power acceleration. Propane costs are not expected to skyrocket, but
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Santa Monica~alifornia, August 18, 1981
RE:Conversion of City Vehicles
to Propane Fuel
Propane (Continued)
increases in gasollne prices will impact propane; however, the ratio of cost
between gas and propane will remain the same.
The cost benefits of propane are:
Assumptions: . Present gasoline cost--51.27 per gallon
. Present propane cost---$ .71 per gallon
. Annual fuel use based on average of 600
gallons at 10 MPG.
ProJected annual fuel costs for 18 vehicles:
Gasoline
$13,716
Propane
7,668
Savings +$ 6,048
Propane system cost:
Conversion $18,000
Station
Lease 244*
Vehicle
Permit 648*
$18,892
Paybac f<:
$18,892 = 3.12 years
6,048
* Funds are available to flnance these expenditures
in the 1981-82 Mechanical Maintenance budget.
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Santa Monic'california~ August l8~ 1981
RE:Conversion of City Vehicles
to Propane Fuel
Compressed Natural Gas (CNG)
A dual fuel system was considered which would allow the option of operating
a vehicle wlth elther compressed natural gas or gasoline. The advantages of
CNG usage are similar to propane. The conversion kits and installation fees
per vehicle are $1,220. The greatest expense using CNG is the $34,000 requlred
to install a refueling station. CNG is cheaper per gallon than propane ($.44
per gallon). However~ the California Energy Commission Transportation Staff
projects CNG prices may triple in the next 2-~ years~ thereby reduclng the
competitlve price. The high initlal expense of a CNG system coupled wlth
rising prlces reduces CNG cost effectiveness significantly.
Cost benefits are as follows:
ProJected annual fuel cost for 18 vehicles:
Gasoline
$13,716
CNG
Savings
4,752
+$ 8,964
CNG System Cost:
Conversions $21,960
Refueling Station 34,000
Vehicle Permits 648
$56,608
Payback:
$56,608
=
$ 8,964
6.3 years
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RE:ConverSlon of C1t~h1cles
to Propane Fue 1 -
Santa ~1oni ceca 11 form a, August 18, 1981
Alcohol Fuels
Alcohol fuels have a number of inherent problems that make it an unacceptable
substitute at this tlme. They are not easl1y available on the West Coast unless
the City becomes lnvo1ved in ltS own blending operatlon. A gasohol prOject was
attempted by the City of Los Angples, but the Fire Department shut down the
Los Angeles program, ruling that the blending operation was dangerous and smog-
produclng. The productlon of alcohol fuels is also energy intensive; that 1S,
signlficant amounts of energy must be expended to produce alcohol fuel.
SUlTJllary
Propane, as an alternatlve fuel, appears to offer the greatest advantage as the
Californla Energy Commiss1on, Transportation Divls10n agrees. Propane operations
lncur lower set-up costs. The price of propane lS not expected to skyrocket and
the payback on the system is only 3 years. In addition to the financlal bene-
fits, propane is a clean-burnlng fuel. It does not produce the toxic emissions
inherent in the use of gasoline and extends englne life by reducing 011 contaminants.
Staff recommends that the last 10 pick-up trucks purchased for the Streets and
Water Departments be converted to propane fuel. The next 8 smaller veh1cles
purchased for these departments (under 10,000 lb. gross vehicle weight) wll1 be
converted after receipt of the vehicles by the City.
Safety of Propane
Propane has been found to be a very safe gasoline substitute. Safety rules
must be followed just as in the dispursal of gasoline. The propane must be
used in a well ventilated area as is found at the Clty Yards. The Clty of Laguna
Beach has been using propane for 10 years in 15 converted vehicles and has had
no accidents resulting from the use of propane. The City of Bell Gardens has
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RE.ConverSlon of Cl~ehlCles
to Propane Fuel -
Santa Moni~California, August 18, 1981
Safety of Propane (Contlnued)
converted 90% of lts police patrol cars to propane. Slnce 1nstallatlon approxi-
mately six years ago, there have been no accldents resulting from the use of
propane. Other clties WhlCh use propane vehicles are La Mlrada, Downey, Los
Angeles, Irv/indale, Fountaln Valley, La Palma and Cypress.
Recommendation
Staff recommends the C1ty Council approprlate S18,OOO from the General Fund
to the Mechanlcal Malntenance Divlslon's Vehlcle Operatlng Expenses
(01-500-461-000-292) to convert 18 City vehicles to propane fuel.
Prepared by: Stan Scholl
Bob Mll1er
Karen Rathbun
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