Feasibility of Establishing an E85 Fuelling Station in Oshawa

Transcription

1 (Oshawa Report To: From: Subject: Strategic Initiatives Committee Bob Duignan City Manager Item: SIC File: B Feasibility of Establishing an E85 Fuelling Station in Oshawa PUBLIC REPORT Date of Report: December 2,2009 Date of Meeting: December 7,2009 Ward(s): All 1.0 PURPOSE The purpose of this report is to provide an update on the investigation and the feasibility of establishing an E85 fuelling station in Oshawa. On September 18, 2006 the Strategic lnitiatives Committee directed staff to work with General Motors, the Provincial Government and the Region to investigate the feasibility of establishing an E85 fuelling station in Oshawa. On June 18, 2007 the Strategic lnitiatives Committee considered Report SIC dated June 15, 2007 (Attachment No. 1) from the Commissioner, Community Services and referred the matter back to staff for implementation options and a report back to Committee. Staff has done a significant amount of work with the private sector in respect to the possibility of establishing an E85 fuelling station in Oshawa. 2.0 RECOMMENDATION That the Strategic lnitiatives Committee recommends to City Council: That, Report SIC dated December 2, 2009 on the matter of the feasibility of establishing an E85 fuelling station in Oshawa be received for information. 3.0 EXECUTIVE SUMMARY 'P Not applicable

2 Item: SIC Initiatives Committee (Continued) Meeting ate: December 7, INPUT FROM OTHER SOURCES 4.1 General 9 The following have been involved in investigating the feasibility of an E85 fuelling station in Oshawa: Commissioner of Community Services Commissioner of Development Services Senior Environmental Coordinator Business Development Manager General Motors E85 Retailer 4.2 Auditor General 9 Not applicable. 5.0 ANALYSIS 5.1 Potential for E85 Fueling Station in Oshawa 9 In order to further the investigation of the feasibility on an E85 fuelling station in Oshawa, staff: Met with GM staff to discuss this matter. GM was not in a position to proactively support the establishment of an E85 fuelling station; Researched and identified a company (UP1 Energy LP) that currently operates three ethanol stations in Ontario (Guelph, Chatham and Woodstock); Met with the company to understand its requirements with respect to location, access, cost and zoning; Identified potential sites that met the company's requirements; and Provided site tours and a list of potential sites to the company so that it could approach the owners. P Staff followed up with the company recently and it has indicated it is not pursuing this venture. 9 The establishment an E85 fuelling station will be a private sector decision based on the identification of a local business opportunity. 6.0 FINANCIAL IMPLICATIONS 9 Not applicable

3 Item: SIC Initiatives Committee (Continued) -3- Meeting Date: December 7, RESPONSE TO THE COMMUNITY STRATEGIC PLAN P The subject investigation advanced Goal A (A Vibrant, Strong and Progressive Community) and Goal B (A Green and Sustainable Community) of the City's Community Strategic Plan by assessing new economic opportunities and environmentally friendly opportunities. Suzanne Elston Senior Environmental Coordinator Bob Duignan City Manager Attachment

4 Item: SIC Attachment No. 1 Report To : From: Subject: Strategic lnitiatives Committee Stan Bertoia Community Services Department Item: SIC File: B Feasibility of Establishing an E-85 Fuelling Station in Oshawa PUBLIC MEETING Date of Report: June 15,2007 Date of Meeting: June 18,2007 Ward@): ALL 1.0 PURPOSE The purpose of this report is to respond to the following Council direction: "That staff of the Community Services Department work with General Motors, the Provincial government and the Region to investigate the feasibility for establishing an E-85 fuelling station in Oshawa." 2.0 RECOMMENDATION The Strategic Initiatives Committee recommends to City Council: That Report SIC dated June 15, 2007 regarding the feasibility of establishing an E-85 fuelling station in Oshawa be received for information. 3.0 EXECUTIVE SUMMARY On September 16, 2006, the Strategic lnitiatives Committee received a presentation from General Motors of Canada titled "The GM Advanced Vehicle Plan & the Role of EthanolJ'. The matter was referred to Community Services for investigation to determine the feasibility of establishing an E-85 fuelling station in Oshawa. Providing and/or assisting with the establishment of the first E-85 fuelling station within Durham Region is an opportunity for the City to be an environmental leader. The City would also show its ongoing support for GM and specifically their new E-85 vehicles produced in the City. Staff has recently met with GM representatives to explore partnership opportunities for establishing an E-85 fuelling station in Oshawa. Other opportunities and/or incentives to enhance the City's green fleet and the City's environmental leadership are also being discussed.

5 Item: SIC Initiatives Committee (Continued) -2- Meeting Date: June 18, 2007 Staff and GM representatives have agreed to continue to work together to explore public and/or private E-85 fuelling station options. A future meeting has been scheduled and staff will report back to Council with viable options and/or opportunities for establishing an E-85 fuelling station in Oshawa. 4.0 INPUT FROM OTHER SOURCES P GM Canada P Development Services P Region of Durham P Provincial Government P Area municipalities 5.0 ANALYSIS 5.1 Potential for an E-85 Fuelling Station in Oshawa P Currently, the closest public access E-85 fuelling stations are in Guelph and Ottawa. The MTO has an E-85 fuelling station in Downsview for their use. A fuelling station in Oshawa could service the general public, private sector fleets and government fleets established in or traveling through the area. P The City's support and initiatives for an E-85 fuelling station could bring partners including other municipalities and/or the private sector to the table to establish a fuelling station and to realize the environmental advantage of ethanol fuel. P The City has made initial contact with area municipalities, the Region of Durham and the provincial government to discuss the use of E-85 vehicles and partnership opportunities. Although there has not been any commitments made to date, staff will continue to work these and other agencies to further this initiative. 5.2 Greening the City's Fleet P There are a number of options for greening the City's fleet. Selection is based on choosing cost-effective vehicles that are well suited for the work being performed and that can be readily maintained and fuelled. Some environmental options currently being considered include hybrid vehicles, alternative fuel vehicles (E-85 flex fuel vehicles, Biodiesel), electric vehicles, active fuel management vehicles and fuel cell vehicles. P Although the above options are being considered, this report concentrates on E-85 vehicles and fuelling stations in response to the presentation provided by GM.

6 Item: SIC Initiatives Committee (Continued) Meeting Date: June 18, Ethanol Fuel, GM E-85 Vehicles P E-85 is a blend of 85% ethanol and 15% gasoline. 3 Ethanol is a renewable resource typically made from corn and supports the agricultural industry. 3 Reduces greenhouse gas emissions (GHG) 3 Decreases dependency on foreign fuel. 3 Fuel cost per litre for ethanol and gasoline remains comparable. P Use of ethanol results in a 25% increase in fuel consumption and thus fuelling costs for E-85 vehicles are expected to increase by 25%. P Preliminary estimate for installation of an above ground E-85 fuelling station (tank, pump and installation only) is approx. $50,000. An underground tank installation is estimated at approx. $1 50, Staff will investigate Government funding programs that could assist in establishing an E-85 station such as the recent announcement from the Province for a $20M Municipal Eco-Challenge Fund. P GM will offer 14 models with E-85 capability in Of these, there are 11 E-85 models that are suitable for consideration for our fleet (i.e. cars, trucks & vans). 3 Currently there is no premium in purchase price for E-85 capability for GM vehicles. P The Federal Government has recently announced a rebate of up to $1,000 for consumers purchasing new qualifying E-85 vehicles. P Although the City does not currently have any E-85 vehicles, vehicles with flex fuel capability will be considered where appropriate. 5.4 Future Potential Opportunities 3 There are a number of other future potential opportunities to provide environmental leadership in this area by partnering with GM and other private sector and public sector organizations. 3 Pilot projects that support environmental leading technology P Public education and awareness. 3 Advertising and promoting E-85 vehicles through City use and at events. 3 Working with Federal and Provincial government agencies to review and provide input into their initiatives and policies in this area. P Providing political support to assist with implementing GHG emissions, reductions and environmental initiatives.

7 Item: SIC Initiatives Committee (Continued) -4- Meeting Date: June 18, 2007 P Working in co-operation with other Fleet operators on Environmental Best Practices and initiatives including: FederalIProvincial The Region of Durham Other area municipalities Oshawa Power Utility Corporation Other utility corporations 6.0 FINANCIAL IMPLICATIONS P There are no financial implications associated with this report. 7.0 RESPONSE TO THE COMMUNITY STRATEGIC PLAN P Supports Goal B1 of Being a Cleaner, Greener City. Original Signed By Mike Molinari, Director Public Works Services Original Signed By Stan Bertoia, Commissioner Community Services Department