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HomeMy WebLinkAbout04.b. Receive update regarding using renewable diesel in Collection System Operations (CSO) vehicles Page 1 of 2 Item 4.b. CENTRAL SAN September 16, 2019 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: PAUL SEITZ, COLLECTION SYSTEM MAINTENANCE DIVISION MANAGER REVIEWED BY: ANN K. SASAKI, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE UPDATE REGARDING USING RENEWABLE DIESEL IN COLLECTION SYSTEM OPERATIONS (CSO) VEHICLES At the June 10, 2019 Real Estate and Environmental Planning (REEP) Committee meeting, Member McGill requested that staff evaluate a recent East Bay Municipal Utility District (EBMUD) presentation on Renewable Biodiesel and whether it is something Central San should consider. Around 2007, EBMUD conducted a pilot study to demonstrate the production and use of biodiesel from interceptor waste grease. B20 and B100 biodiesels were produced from waste grease for use in four heavy-duty trucks and they were tested alongside commercially available biodiesel. The pilot results indicated that biodiesel could be produced from the interceptor waste grease for use in the heavy-duty trucks. However, there were some issues associated with the biodiesel use such as high sulfur content, increased fuel filter replacement, and fuel tank heaters required during the winter. The pilot study never progressed to a full-scale production run because reducing the sulfur to meet the regulatory standards would have been prohibitively expensive. I n 2016, EBMUD began a two-year pilot at their two main corporation yards using renewable diesel. While biodiesel and renewable diesel can be produced from the same type of waste fats and oils, they are different products with different properties and undergo different refining processes. Renewable diesel is only produced at large scale refineries. The use of renewable diesel at EBMUD has proven so successful that in June of 2018, they began using it at several other yards. EBMUD is now using it at 7 out of 12 yards. In addition to EBMUD, several agencies including; the County of Sacramento, San Francisco Department of the Environment, Red and White Fleet, City of Oakland, City of San Leandro, City of Beverly Hills, City of San Diego, WestCAT, and Pasadena Fire Department are now using renewable diesel. In addition, private fleets such as Cemex and Fuel Delivery Services have begun to use renewable diesel in their fleets. CSO staff has been evaluating renewable diesel over the last six months and have identified several benefits. These benefits include extending the Diesel Particulate Filter(DPF) regen intervals, which reduces the number of times the diesel particulate filters have to be removed from the trucks and sent out to vendors for cleaning. It reduces the diesel particulates workers are exposed to while working around the heavy-duty trucks. It reduces the number of times the fuel filters have to be replaced. Lastly, it increases the cold start performance of the diesel engines. Renewable diesels meetASTM D975, ULSD, and CARB specifications which means it is interchangeable with petroleum diesel and can be used without changes to the equipment or voiding of the manufacturer's warranties. Central San's fuel September 16, 2019 REEP Committee Meeting Agenda Packet- Page 19 of 32 Page 2 of 2 delivery contract will be going out to bid in the near future and staff is going to add renewable diesel as an additional bid item. This would allow the fleet to operate to pilot test renewable diesel and have petroleum diesel as a backup. I n discussion with other fleet managers, the cost of renewable diesel is about the same as petroleum diesel. The savings in maintenance by using renewable diesel should offset additional costs if any. Currently, CSO uses approximately 30,000 gallons of diesel a year. Strategic Plan re-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability Strategy 2- Reduce reliance on non-renewable energy, Strategy 3- Encourage the review and testing of technology to optimize and modernize business operations September 16, 2019 REEP Committee Meeting Agenda Packet- Page 20 of 32