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SR-508-003-01 . GStvl. SS . dd e Santa Monica~alifornla, August 182 1981 .,. 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 $18,000 to the tJlechanical Maintenance Division to convert 18 City vehicles to propane fuel. Background Staff has been investigating the use of lower cost fuels for City veh1cles. The fuels considered include: propane, compressed natural gas, and gasohol. The following 1S a discussion of the pros and the cons of each. Propane Converslon to any alternative fuel '~"r:;;....Ch. ~4D.--f'~r: . _/ ~J'-' j '....oF V """"'(::") to the standard gasoline engine. Each fuel has vc sion k1ts and installation fees pf ~~ 60g ;003-01 on. Propane conver- \ fuel dispenslng tank and pump can be leased annua ition, special veh1cle permits are required by the State for vehicles usfngl1on-standardized fuels. The advantages of uSlng propane are: . Reductlon of dangerous exhaust emissions. . Reduction of oil contaminants resulting in extended engine life. . Significantly lower fuel costs. The major complaint resulting from the use of propane-fueled vehicles lS the reduction of power during acceleration. However, City operations do not require high power acceleration. Propane costs are not expected to skyrocket, but r' / -/j (!) '. 'L 1;, AUG 2 5 Hl81 .~ .~ " --~ ~ c e Santa Monica~alifornia, August 18, 1981 RE:Conversion of City Vehicles to Propane Fuel Propane (Continued) increases in gasollne prices will impact propane; however, the ratio of cost between gas and propane will remain the same. The cost benefits of propane are: Assumptions: . Present gasoline cost--51.27 per gallon . Present propane cost---$ .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. - 2 - ~-~- e 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 - 3 - 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 - 4 - ----- 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 - 5 ~