Explanation
BACKGROUND: The Fleet Management Division within the Department of Finance and Management has, among other duties, the procurement, delivery and coordination of fuel dispensing for many city agencies. In 2010 the City was awarded a federal grant to fund cost-shared projects that expand the use of alternative fueled vehicles and advanced technology vehicles, as well as the installation of infrastructure necessary to support these initiatives. From this grant, as well as from funding from City resources, a compressed natural gas (CNG) station was designed and constructed at 4211 Groves Road, and 24 CNG vehicles have been purchased.
A grant stipulation states that the City is required to allow public access to and purchases from the CNG facility. This ordinance authorizes the Director of Finance and Management, on behalf of the Fleet Management Division, to establish a mechanism for the creation and implementation of rates to be charged for the purchase of CNG and for the periodic review of these same rates. These rates can apply to either public or private consumers of this commodity from this facility or any other City-owned CNG facility that the City may operate in the future.
CNG vehicles produce significantly lower amounts of harmful emissions such as nitrogen oxides, particulate matter, and toxic and carcinogenic pollutants. Natural gas is a domestically available, inherently clean-burning fuel. Using CNG as vehicle fuel increases energy security by reducing our dependence on foreign oil, and improves public health and the environment. Currently, CNG is also significantly lower in cost than either gasoline or diesel. The City paid an average of $3.24 per gallon in 2011 for diesel fuel. While, the cost of natural gas will fluctuate with market conditions, the Fleet Management division estimates the cost of CNG to approximate $1.80 per gge (gasoline gallon equivalent), a $1.44 per gallon or 44% reduction in fuel cost.
Also, as part of the ...
Click here for full text