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HomeMy WebLinkAbout07. 14-148 APRIL 8, 2014 14-148 RESOLUTION (CARRIED__7-0______LOST________LAID OVER________WITHDRAWN________) PURPOSE: APPROVAL OF AGREEMENT WITH WISCONSIN PUBLIC SERVICE CORPORATION TO PARTICIPATE IN GRANT PROGRAM FOR COMPRESSED NATURAL GAS (CNG) AND OTHER ALTERNATIVE FUEL VEHICLES INITIATED BY: DEPARTMENT OF PUBLIC WORKS WHEREAS, Wisconsin Public Service Corporation (WPS) is funding a program to replace gasoline and diesel powered fleet vehicles located in WPS’s service territory with newly manufactured compressed natural gas (CNG) vehicles; and WHEREAS, WPS will require entities participating in the program to enter into an agreement for participation. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized to enter into and take those steps necessary to implement an appropriate agreement with Wisconsin Public Service Corporation for participation in WPS’s Grant Program for Compressed Natural Gas (CNG) vehicles. (0 Of HKO1H ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: David C. Patek, Director of Public Worksi .-P DATE: April 3, 2014 RE: Agreement with Wisconsin Public Service (WPS) to Participate in a Grant Program to Partially Fund the Costs of Compressed Natural Gas (CNG) Vehicles BACKGROUND WPS has developed a program to fund the replacement of gasoline- and diesel- powered fleet vehicles. The program is required to provide environmental mitigation per an agreement between WPS and the Environmental Protection Agency. ANALYSIS WPS is working to develop programs to replace vehicles with CNG engines in the City of Green Bay and the City of Oshkosh. WPS intends to fund the incremental purchase costs for vehicles and they anticipate total program funding of up to $1.6 million. Eligible funding is available from WPS. as follows: • $13,000 per gasoline - fueled vehicle • $40,000 per diesel- fueled vehicle m $60,000 per transit bus FISCAL IMPACT This program will provide funding for the time period of 2014 to 2018. At this time, we intend to submit for possible vehicle replacements in Public Works, Parks, Transportation, and the Police Departments. As bids are requested for specific equipment, a determination will be made regarding the cost - effectiveness of a CNG engine versus having the equipment remain as a gas- or diesel- powered engine. RECOMMENDATIONS I recommend approval of the proposed resolution. Approved, Mar A. Rohloff City Manager DCPltlt IAEngineeringlTracy TayloAMemos to Mayor & Common CounoRV01411+VPS Fund CNG Veh_43- 14.docx WPS CNG Vehicle Replacement Program Overview Wisconsin Public Service Corporation (WPS) is funding a program to spend up to $2 million to replace gasoline and diesel powered fleet vehicles (light and medium duty trucks, and heavy duty service vehicles), located in WPS's service territory, with newly manufactured compressed natural gas (CNG) vehicles. Upgraded fleets shall be owned by WPS or shall be publicly -owned motor vehicles. This program is one of several Environmental Mitigation Projects that are a part of a consent decree between WPS and the United States Environmental Protection Agency (EPA). Eligible equipment includes operating on road gasoline and diesel- powered vehicles. Eligible emission reduction technologies are limited to, gasoline and diesel vehicle replacements with dedicated CNG fueled vehicles. All replacement vehicles must meet 2011 U.S. EPA standards. The purchase of new vehicles or equipment to expand a fleet is not covered by this program. The replacement vehicle or equipment will be of the same type, similar gross vehicle weight rating, and horsepower, as the vehicle, engine, or equipment being replaced. What is the Amount of Funding Available? The total estimated funding for this program is approximately $640,000 - 1,600,000 over the estimated four year life of the program. WPS anticipates awarding funds from this program ranging from $214,000 to $537,000, per participating recipient. Funding levels will be subject to availability of funds, which will be dependent upon the success of a related wood stove replacement program. Funding Allocations WPS will strive to allocate available funds equally amongst participating recipients. However, WPS reserves the right to allocate payments to recipients on both an annual and program basis to meet program goals, objectives and budgets. Eligible Costs Funding will be awarded ONLY to pay for the Incremental Purchase Costs of new CNG dedicated fuel vehicles. Incremental purchase cost means excess cost of a CNG vehicle over the price of a gasoline or diesel fuel motor vehicle of a similar model Funding is capped at $13,000 per gasoline fueled vehicle, $40,000 per diesel fueled vehicle and $60,000 per transit bus Costs to recipient for vehicle disposal will not be reimbursed Vehicle Selection Process • Vehicle being replaced must be a gasoline or diesel fueled on -road vehicle still in service • Replacement vehicles must be of the same type and similar gross vehicle weight rating and horsepower as the vehicle being replaced • Replacement vehicles must be new CNG dedicated -fuel, no bi -fuel vehicles will be funded • New CNG vehicles must perform the same function as the vehicle being replaced (i.e. dump truck, sewer vac., etc.) • New CNG Vehicles must meet EPA regulatory requirements for vehicles manufactured in 2011 or later Vehicle Scrapping Requirements Evidence of appropriate disposal, including engine serial number (SN) and/or vehicle identification number (VIN), is required for recipient to receive program payment. Equipment and vehicle components that are not part of the engine or chassis may be salvaged from the unit being replaced (i.e. plow blades, shovels, seats, tires, etc.). If scrapped or salvaged vehicles /parts are to be sold, program recipient shall provide WPS with dollar amount for reporting purposes (this will not reduce incentive payment to program recipient). • Vehicles being replaced must be scrapped or rendered permanently disabled by drilling a hole in the engine block through at least one cylinder • Provide photos of proof of destruction • Picture of engine tag that includes engine serial number and family identifier • Picture of scrapped engine prior to and after hole has been drilled • Picture of side profile of vehicle being replaced • Receipt from scrap yard or recycling facility Documentation & Reporting Requirements: • Scrapping Documentation (photos, receipt from scrap yard or recycling facility) • Complete "FLEET REPLACEMENT" form provided by Company • Document the new vehicle selection process including a listing of the makes and models of all CNG vehicles considered for purchase and provide a brief explanation why one model was selected over another. • Submit request for reimbursement once all Program Requirements have been met This document is for informational purposes only and is not binding on the party receiving it or distributing it. If your organization is eligible to participate in the program, you must enter into a separate written agreement with WPS which shall contain legal terms and conditions and program parameters and shall control and govern the relationship :between the parties.