DESIGNING A SUSTAINABLE FLEET STRATEGY

Building An Environmentally Responsible Fleet Requires Research, Planning, And Matching Vehicles And Technologies To Agency Needs

OVERVIEW

Fleet management's role in state sustainability initiatives is often critical to achieving program goals in cutting energy consumption, reducing greenhouse gas emissions, and supporting good "planetary citizenship."

Do you ever wonder what impact fleet vehicles have on our state’s environment?  Assuming each vehicle drives at the speed limit and logs 18,000 miles annually:

• Each compact car emits 5.31 tons or 10,620 pounds of carbon dioxide (CO2) annually.  
• Each mid-sized car emits 9.90 tons or 19,800 pounds of carbon dioxide annually.  
• Each SUV or pickup emits 14.43 tons or 28,860 pounds of carbon dioxide annually.  

The total effect on the environment, based on a 9,000 state-owned or leased vehicle fleet:  87,066 tons or 174,132,000 pounds of carbon dioxide emitted annually.

Even during budget constrained, bottom-line-wary times, the State continues to pursue green fleet measures, especially those that can have an immediate impact on agencies’ budgets.
Building an eco-responsible fleet requires research, good planning, and effective implementation.  Fleet managers are, through necessity, evolving into project management professionals, lean process Black belts, and astute business analysts.

BUILDING RIGHT MIX OF GREEN VEHICLES & TECHNOLOGIES

The State continues to be fuel-neutral in its support of green vehicles and technologies.  Fueled by federal regulation (Corporate Average Fuel Estimate – CAFE) the State’s strategic procurement processes now include the integration of alternative fuel vehicle categories across the statewide automobile contract categories (SW035).

Corporate Average Fuel Estimate Standards

1. Learn before you leap.

Pilot programs using a small number of vehicles can validate agency assumptions about which technologies best support the agency’s mission and budget.  The Department of Central Services Fleet Management Division conducted a successful pilot of automatic vehicle location (AVL) technology in FY 2009 that resulted in a 30 percent reduction in fuel expenditures and concurrent CO2 emissions. That experience served as the catalyst for a statewide contract (SW799) offering the same technology.  

2.  Match the fuel to the fleet.

States often require fleets with multiple vehicle, fuel types, and even combinations of fuel types.  We believe there are multiple technologies with abundant domestic fuel supplies that can reduce operating costs and environmental impact over time, while the State continues its efforts to establish the infrastructure needed (HB3028) to sustain increasing numbers of alternative fuel vehicles.

From a 2009 pilot program, the state learned that CNG and hybrid-electric vehicles work for its urban-based agency applications, particularly since the technology infrastructure is more readily accessible in major metropolitan areas.  To complement and expand this successful urban sustainability effort, the State is exploring dual-fuel vehicle categories for agencies that support more geographically dispersed citizenry.  Current dual-fuel vehicles include ethanol/CNG with future LPG/CNG combinations possible.  Dual-fuel capability may have an added benefit of relieving employee anxiety during statewide infrastructure development.

3.  Leverage state natural resources.

To leverage existing state natural resources, provide a concurrent savings in fuel expenditures, and reduce environmental emissions, agencies should consider prioritizing their fleet sustainability efforts by formalizing their replacement methodology.  An example might provide priorities:

• Priority 1 – Original Equipment Manufacturer (OEM) alternative fuel capable vehicles.
• Priority 2 – OEM vehicle where an existing Environmental Protection Agency (EPA) Certificate of Conformity exists or a small volume manufacturer (SVM) waiver is pending for after-market alternative fuel conversion.  Within this priority, bi-fuel conversion technology may be favored over dedicated alternative fuel technology until and unless a minimum fuel range of 350 highway miles can be achieved using dedicated after-market conversion; then consider equally for use.
• Priority 3 – OEM vehicles that meet or exceed Corporate Average Fuel Estimate (CAFE) standards.

4.  Integrate sustainability efforts with strategic objectives.

Successful change agents are those that embrace change, but do not subscribe to a “ready, shoot, aim” methodology.  Successful organizations execute a formalized change control process that ensures deliberate and thoughtful consideration of concepts, technologies, processes, or products and ties them to existing long-term, strategic objectives.

Develop a well-researched sustainability plan that includes deliverables and support the following process groups:  Initiation, Planning, Execution, Monitoring and Controlling, and Closing (acceptance by supported agency or stakeholder of a deliverable).

Get buy-in from key, high-level management or agency leadership.  Build and present a defendable business case.  During periods of economic downturn, if the net present value of the project isn’t positive – do not pursue.  

Frame the plan in a timeline of short-, mid-, and long-term phases.  As technology changes, progressively elaborate the details for mid- and long-term objectives.  This is sometimes called the Rolling Wave planning method.

Manage stakeholder expectations.  Solicit input from vehicle operators, management, and other relevant parties in developing your fleet sustainability program.  Once approved by those stakeholders, stick to the plan.  Changes in scope or “scope creep” are the most common reasons for project cost overrun, project delay, or project failure.