(a) Any state agency operating a fleet of more than
15 motor vehicles, excluding law enforcement and emergency vehicles,
shall have a fleet percentage of alternative fuel vehicles equal to
or greater than 30% of the total number of such vehicles operated
by September 1, 1994, and a percent equal to or greater than 50% by
September 1, 1996.
(b) A state agency desiring a waiver from subsection
(a) of this section shall submit a certification to the Office of
Vehicle Fleet Management of the comptroller that meets one or more
of the following conditions:
(1) the vehicles will be operating primarily in an
area in which neither the agency nor a supplier has or can reasonably
be expected to establish a central refueling station for alternative
fuels;
(2) the agency is unable to acquire or be provided
equipment or refueling facilities necessary to operate vehicles using
an alternative fuel at a projected cost that is reasonably expected
to result in no greater net costs than the continued use of traditional
gasoline or diesel fuels measured over the expected useful life of
the equipment or facilities supplied; or
(3) the agency is unable to acquire or be provided
any alternative fuel vehicles or equipment necessary for such vehicles.
(c) The subsection (b) of this section certification
must be sent to the Office of Vehicle Fleet Management of the comptroller
and must be accompanied by the information described in either subsection
(d) or (e) of this section.
(d) A subsection (b)(1) of this section certification
shall also contain the:
(1) total number of vehicles in the fleet subject to
these rules;
(2) total number of vehicles currently operating on
an approved alternative fuel;
(3) percentage of the fleet subject to these rules
that is impacted by the requested waiver;
(4) vehicle license plate number of each vehicle to
be waived;
(5) city or town nearest to where each vehicle identified
in paragraph (4) of this subsection is normally garaged;
(6) name of any alternative fuels vendor or supplier
with a stationary supply of fuel within a 10-mile radius, or mobile
fuel suppliers within a 30-mile radius of where each vehicle identified
in paragraph (4) of this subsection is normally garaged; and
(7) correspondence or other documentation relevant
to the request for waiver or reduction.
(e) A subsection (b)(2) of this section certification
must be accompanied and supported by a state agency prepared cost
benefit analysis for each alternative fuel which includes the following:
(1) total initial cost of providing the entire alternative
fuel facility, or a portion thereof, including, but not limited to,
the following (if the equipment is provided at no initial cost to
the agency and the fuel vendor plans to recoup the initial cost through
increased fuel costs, then only those items furnished by the agency
such as land shall be included in the total initial cost):
(A) cost of land at current market value, on which
to install any compressor station, tanks, and refueling facilities;
(B) cost of compressor and related facilities, including
cost of providing operating power, if not already available at the
site, any engineering work for site preparation;
(C) cost of refueling and related facilities, including
fast and slow refueling stations, refueling tanks;
(D) cost of providing alternative fuel to the site
such as gas pipeline;
(E) cost of engine conversion kits and fuel cylinders
and/or tanks, including installation costs;
(F) cost of initial training and certification of mechanics,
and training of drivers to operate alternative fuel vehicles, if required;
(G) cost of future major overhauls of the compressor
system according to the compressor manufacturer's recommended major
overhaul schedule (see paragraph (7) of this subsection);
(H) cost of future major overhauls or replacement of
the refueling stations if the expected life is less than 30 years;
(I) costs of future replacement of fuel conversion
kits (see paragraph (7) of this subsection); and
(J) any other costs or expenditures necessary to provide
a complete, turnkey facility;
(2) total annual mileage expected for the vehicle fleet
or for those vehicles covered by the cost study;
(3) total annual fuel savings calculated from the difference
between the fuel costs using gasoline/diesel and using alternative
fuel for the total annual mileage in paragraph (2) of this subsection;
(4) an estimate of any additional savings such as reduced
maintenance costs (e.g., extended oil change intervals, longer spark
plug life, and other savings in maintenance);
(5) an estimate of the total annual operating costs,
including, but not limited to, the following:
(A) compressor and refueling station maintenance, not
replacement cost or cost of major overhaul (see paragraph (1) of this
subsection);
(B) cost of labor for removing, testing, and reinstalling
alternative fuel cylinders/tanks for inspection and testing;
(C) cost of maintenance and repair of engine conversion
kits;
(D) cost of testing fuel cylinders/tanks;
(E) cost of training additional mechanics and labor
cost differential, if any, for mechanics and other personnel servicing
alternative fuel equipment;
(F) cost of electrical power to operate the compressors
and refueling stations; and
(G) other annual costs uniquely associated with the
operation of the alternative fuel program;
(6) determine the total annual savings from the difference
between the total savings (sum of paragraphs (3) and (4) of this subsection),
and the total annual operating costs, paragraph (5) of this subsection;
(7) estimate the expected life of the various components
of the system. If accurate lifetimes are not available, the following
shall be used:
(A) conversion kits = 15 years (if removed from old
and reinstalled on new vehicles; if not reinstalled, use six years
for conversion kits for automobiles and small buses, and 10 years
for light and medium-duty trucks and large buses);
(B) fuel cylinders/tanks = 30 years (or less if lifetimes
are not 30 years); and
(C) compressors = 30 years (or replacement at the time
recommended by the compressor manufacturer for the third major overhaul.
If not known or not listed by the manufacturer, use 10 years):
(8) determine the capitalized costs of the various
components in subsection (e) of this section and then calculate the
payback period by using the total capitalized costs; total annual
savings, paragraph (6) of this subsection; and 10% cost of money (or
the actual interest rate applicable at the time the calculation is
made) in standard life cycle cost benefit analysis formulae; and
(9) the comptroller may assist state agencies and school
districts in making these calculations.
(f) The director will review the request for waiver
or reduction of the requirements of subsection (a) of this section
and issue a written waiver or reduction to the state agency or school
district. A waiver or reduction may be issued under this section for
a period of up to two years, at the discretion of the director. A
waiver will be granted on a certification under subsection (b)(2)
of this section if the total capitalized cost, P, max. is more than
9.43 times the total annual savings, A, for an expected compressor
or system lifetime of 30 years. If the compressor lifetime is less
than 30 years, or if a compressor is not used, and the component in
subsection (e)(1) of this section with the longest expected lifetime
is less than 30 years, a waiver will be granted if the total capitalized
costs are more than the following values (if other than 10% interest
is used, adjust accordingly).
Attached Graphic
(g) The comptroller keeps these waivers for up to two
years for use in waiving the purchasing restrictions for state agencies
in §20.235 of this title (relating to Purchase of Motor Vehicles).
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