Central Fleet Management by fionan

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									  Efforts to Reduce Fuel Consumption and Improve Energy Efficiency in State Government
                                      August 2005

The State of Maine has taken significant steps to reduce fuel consumption and improve energy
efficiency through a number of efforts, including Governor Baldacci’s Executive Order 11 FY
04/05. The executive order represents a comprehensive approach to ensuring the State’s continued
improvement in the area of energy efficiency.

                                            State Vehicles

Paid Mileage/Miles Traveled
An analysis by Central Fleet Management (CFM) of State vehicle miles traveled (rental vehicles,
lease vehicles and state paid mileage) finds that the state has decreased the amount of miles traveled
by 2.3% in FY05 from FY04. Paid mileage costs decreased by $185,000 from FY04 to FY05 and
vehicle miles reimbursed decreased by 1.2 million miles. It should be noted that the reimbursement
rate for paid mileage increased from FY04 to FY 05 from 32 cents a mile to 34 cents pursuant to
State bargaining agreements.

From FY04 to FY05, the State had a reduction in the number of gasoline gallons consumed of
approximately 76,000 gallons, however, the average cost of gasoline has increased by 36 cents.
Since FY 03, consumption of vehicle fuel decreased by nearly 284,000 gallons.




            Paid Mileage*

                                                                      Estimated      Increase
                                                                    Gallons Based       or
                         Total Cost       Miles Driven               on 20 MPG       Decrease
            FY2002        $7,658,037.56    25,526,792                    1,276,340
            FY2003        $7,242,469.94    22,632,719                    1,131,636   -144,704
            FY2004        $7,469,381.24    23,341,816                    1,167,091     35,455
            FY2005        $7,283,984.93    22,130,200                    1,106,510    -60,581



            Gasoline

                                             CFM's                    Estimated
                                            Average                    Gallons
                         Total Cost       Price/Gallon                Purchased
            FY2002        $3,894,260.49          1.109                   3,511,506
            FY2003        $4,434,222.21          1.280                   3,464,236     -47,270
            FY2004        $4,702,882.81          1.463                   3,214,547    -249,689
            FY2005**      $5,665,900.44          1.805                   3,138,481     -76,066
                                                 0.342   Increase   from FY 04 to FY 05



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            Diesel**
                                                   Estimated
                                                   Statewide                  Estimated
                                                    Average                    Gallons
                                                  Price/Gallon                Purchased
            FY2002               $2,712,818              1.071                   2,532,576
            FY2003               $2,760,703              1.027                   2,328,241    -204,335
            FY2004               $2,329,536              1.088                   2,140,944    -187,297
            FY2005               $3,736,728              1.560                   2,395,448     254,504
                                                         0.472   Increase   from FY 04 to FY 05

            Total All          Total All
            Fuel**             Gallons
            FY2003               6,924,113
            FY2004               6,522,582                                                      -401,531
            FY2005               6,640,439                                                       117,857


       * NOTE: FY2003 & FY004 Costs are Actual. FY2002 DOT costs are estimated based on the percentage of dollars
       spent in FY2003. (26.27%)
       **Figures Updated as of January 2006.

To reduce costs and best utilize the State’s fleet of vehicles, CFM analyzes State employee paid
mileage expense versus the cost of those employees using rental or leased vehicle from Central
Fleet. An agency currently reimbursing employees for 20,000 miles per year for paid mileage could
save approximately $1,600 per year by issuing the employee/agency a more fuel efficient compact
sedan from CFM. This savings is based on current paid mileage and CFM rates. Fourteen vehicles
were purchased on the 2004 vehicle bid for employees who were on paid mileage and in 2005, 22
vehicles were purchased for this purpose. (Information from Central Fleet Management)

Cost of Gasoline
The price paid by the State for gasoline has increased consistent with current market forces. This
trend is expected to continue through the remainder of FY 06. The following is the average price
per gallon billed to agencies over the last fiscal year.

                         FY05                                FY06
                         July 2004                 $1.75     July 2005           $2.15
                         August 2004               $1.75     August 2005*        $2.25
                         September 2004            $1.75
                         October 2004              $1.85
                         November 2004             $1.85
                         December 2004             $1.75
                         January 2005              $1.70
                         February 2005             $1.80
                         March 2005                $1.90
                         April 2005                $2.05
                         May 2005                  $2.00
                         June 2005                 $2.00
                         *Average price through August 19.




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The State does not pay federal tax (18 cents per gallon) on the price of gasoline. Additionally,
through a contract with Irving, the State receives a 3.2 cent per gallon discount for all gasoline
purchased at these locations. While gasoline may be purchased at any station, employees are
encouraged to frequent Irving, when available. (Information from Central Fleet Management)

Effective September 17, 2005, the State will no longer be subject to state tax on gasoline. The
benefits from this reduction will accrue to the General Fund. (Budget)

Fuel Card
The State of Maine recently entered into a Mastercard fuel card contract with the Comdata
Corporation, using OPIS pricing instead of retail pricing. "OPIS" refers to "Oil Price Information
Service." OPIS verifies pricing and availability of fuel products at terminals across the U.S.
Comdata's pricing for the State of Maine will be based on the OPIS price (at two terminals in Maine
-- Bangor and Portland) plus a fixed “adder.”

The contract has many advantages for the State of Maine. Retail (at the pump) pricing is volatile
and reacts immediately to adverse market news. Conversely, retail pricing is slow to decline when
market forces change. OPIS pricing is wholesale pricing based upon deliveries at major terminals.
It is less reactive than retail, protecting the State to some extent from price spiking. Individual
vendors are still free to offer discounts. For example, Irving offers the State a 3.2 cent discount per
gallon.

The Comdata MasterCard is accepted universally and should offer more opportunities for
participation by the state's merchants. The potential is to add 400 vendors statewide. All State
Agencies will use the Comdata Mastercard. This will streamline billings because there will be one
account per Department and one bill per department (versus bills from multiple oil and credit card
companies.) Comdata also offers several rebates: for activation of cards within 90 days of issue;
for early payment; and for annual fuel expenditures that will allow the State to save additional
funds.

Increased Use of Hybrids
In 2000, the State of Maine had only one hybrid vehicle in the central fleet. Over the past 5 years,
this number has increased to 52 (Information from Central Fleet Management)

                                                        Breakdown of Hybrid Types with gas mileage

                Hybrid                                                                         CFM Average
             Count at the                                                    EPA Average       MPG based
    FY                                          Count        Description
              end of each                                                    Highway MPG       on Historical
                  FY                                                                           Data
   2000            1                                         GMC
                                                3                            19                17
   2001            7                                         Pickups
   2002           12                            31           Toyota Prius'   48                43
   2003           18                            17           Honda Civics    48                41
   2004           33                                         Honda
                                                1                            70                59
                                                             Insight
   2005           46
                                                52           Total
   2006          52*
*Partial FY06



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(NOTE: The Departments of Transportation and Public Safety fleets are not included in Central
Fleet Management.)

Promotion of GO Maine
GO MAINE Commuter Connections (www.gomaine.org) is Maine's statewide commuter services
program. It provides services and information for the commuting public on healthy, economical and
environmentally friendly options for commuting to and from work: carpools, vanpools, transit (bus,
ferry and rail), bicycle, walking, and Park and Ride lots. Information regarding the GOMaine
Commuter Connections is now distributed at State new employee orientation sessions.

Additionally, the link for the GOMaine web site has been included on three locations of the State
site—the Employee News Center, the State’s Intranet homepage and the Bureau of Human
Resources homepage. Quarterly messages regarding the GOMaine Commuter Connections have
been developed as e-mail reminders to state employees. The GO Maine website also allows
individuals to sign up for a van pool online and will match commuters seeking to join a car pool in
real time.

The Departments of Administrative and Financial Services and Transportation and the GOMaine
Vanpool Program implemented a pre-tax benefit program for State employees commuting to and
from work riding GOMaine Vanpools. This transportation benefit helps state employees who are
vanpool participants save a significant amount of money annually on their commuting costs. The
benefit allows participants to pay for a portion or all of their monthly vanpool fare with pre-tax
dollars. This means a significant savings on Federal and State taxes.

By the end of 2005, GOMaine and the Department of Transportation will deploy an Internet-based
Custom Travel Matching Service for State employees’ use for official state business travel needs.
State employees will be able to use this travel service before signing out a vehicle from the State
fleet or using his or her own vehicle for business travel needs.

Finally, preferential parking has been established at several locations within the State Complex in
Augusta for employees, who sign up with the Department of Transportation as a carpool or drive a
hybrid vehicle. A hang tag is provided to identify the vehicle as authorized to park in the specially
designated area. (Information from DAFS and MDOT)

                                           State Buildings

Fuel Pricing for State Buildings
Contracts have been awarded for #2 Fuel and Bio-diesel for State buildings. The State will be
paying $1.819/gallon for quantities exceeding 10,000 gallons and $1.836/gallon for quantities under
10,000. (Difference is due to tank size and ability to deliver large amount to one location.) The
estimated total gallons for #2 Fuel purchased by DAFS is 1,264,835 gallons for use at 98 location.
Several agencies have separate contracts for fuel due to specific fuel needs (low sulfur) and
location.




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In addition to being environmentally friendly, Bio-diesel is also a renewable energy source. The
contract price for over 225,000 gallons of B-5 (bio-diesel) is $2.1852/gallon. Bio-diesel will be
used in the Capital Complex only (Cross Office Building, State House and Cultural Building).
(Information from Division of Purchases)

LEED (Leadership in Energy and Environmental Design)
Governor Baldacci’s Executive Order 8 FY 04/05 requires the design, construction, operation and
maintenance of any new or expanded state building to incorporate the U.S. Green Building
Council’s LEED design standards, so long as the standard is cost effective over the life of the
building. The new academic building at the Governor Baxter School for the Deaf was designed in
accordance with LEED standards and is expected to receive formal certification as a “green”
building. (Information from Bureau of General Services)

Energy Star Challenge
The State recently joined the EPA’s “Energy Star Challenge” requiring three actions to be taken:
assess how much energy each building is using; establish efficiency improvement goals of 10% or
greater, and make efficiency improvements where cost effective. BGS’ recent energy assessment
of state buildings is a good starting point for the energy star challenge effort. To ensure that state
owned buildings are operated in the most energy efficient manner, building operators will be
receiving training to update their skills. Additionally, five State buildings in Augusta will be
retrofitted with energy saving improvements during the fall of 2005.
(Information from Bureau of General Services and Office of Energy Independence)

ASHRAE + 20%
ASHRAE is a standard of energy efficiency as designated by the American Society of Heating,
Refrigerating and Air Conditioning Engineers, Inc. A commitment to ensure State buildings meet
ASHRAE +20% indicates that this efficiency standard will be exceeded by 20% in State
construction and renovations.

The Bureau of General Services has adopted rules (Chapter 60) to implement the increased energy
efficiency standards and received a grant from the Henry P. Kendall Foundation to develop a
guidebook establishing design standards specifically for the State of Maine that would achieve the
20% savings required by statute. The guidebook is the first in the country, and is considered by
many to be a model for advancing improved energy standards in other states. (Information from
Bureau of General Services)

Performance Contracts
The Department of Corrections has been authorized to borrow up to $1.2 million to achieve energy
savings in its facilities by installing energy saving equipment and making modifications to heating,
cooling, and lighting systems. The cost will be recovered through a "performance contract" that
guarantees energy savings. An energy audit of correctional facilities has been conducted, the
contract was awarded, the work has been completed and final payment was made late June 2005.
Currently, the Department and the contractor are working out the monitoring of the savings. Energy
saving improvements will be in place this heating season. (Information from Dept. of Corrections,
PUC and BGS)




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Solar Panels at State Parks
In a pilot program, the Department of Conservation is using solar panels to preheat water at some
State Park shower facilities.

                                       Technology Initiatives

Tele-Conferencing/Video-Conferencing
Tele-conferencing and video-conferencing are tools that can help reduce vehicle miles traveled and
gas consumption, while increasing employee productivity. Information on audio and web
conferencing has been distributed to employees through a statewide e-mail. Additionally, articles
on the benefits of audio and web conferencing have appeared in the June 2004 and July 2004 issues
of the Maine Information Systems Technology Newsletter.

Last month over 200 tele-conferencing calls were placed by State agencies. Efforts to promote tele-
conferencing will continue with the assistance of agency heads. Agencies are currently being
surveyed to determine if additional training and information will increase the usage of these
communication tools. Information on tele/web/video-conferencing is available at
http://inet.state.me.us/conferencing/default.aspx.

Online Services
By reducing the need for citizens to travel in order to conduct business with the State, Maine’s
award winning portal www.Maine.gov provides much more than just fast, efficient and convenient
access to State information and services. Reducing the need for State employees to travel saves cost
and conserves energy, but reducing the need for citizen and business travel to transact State
business may have an even greater impact on energy conservation.

Rapid Renewal is a service that allows Maine auto owners to pay their excise tax and register their
vehicle in one seamless online transaction. Prior to the availability of this service, registering your
vehicle involved at least one trip to your municipal office and often a second trip to a branch office
of the Bureau of Motor Vehicles. Now over half of Maine’s residents live in a community that
participates in Rapid Renewal and are able to avoid that travel and many have taken advantage of
the opportunity. In 2004, the number of Rapid Renewal transactions doubled from that in 2002
(17,003 to 34,303), saving tens of thousands of trips to municipal and state offices.

Similar results can be found in other online services. The use of PayTixx in 2004, with over 18,500
transactions, has more than tripled from 2002 figures of approximately 5,000 transactions. MOSES,
Maine Online Sportsman Electronic Service, has seen a 76% increase in its online services from
2003 to 2004. With over 300 online services, Maine.gov holds great potential for changing how
citizens interact with government. The benefits include 24/7/365 access to State government
information and services, increased efficiency, reduced costs and energy conservation.




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                                          Rapid Renewal Usage

                                                Annual transactions


                50,000
                45,000
                40,000
                35,000
                30,000
                25,000                                                             Annual transactions
                20,000
                15,000
                10,000
                 5,000
                     -
                          2000     2001     2002     2003     2004 2005*

                      * 2005 figures are projected based on initial experience through April 2005.


                                 Environmentally Friendly Initiatives

Recycled Paper Products
In FY 2005, 85% of paper purchased by the State of Maine had at least 30% post consumer content.
This far exceeds the statutory requirement that 50% of paper purchased by the State be recycled
content paper. (Information from Division of Purchases)

Certified Wood
Governor Baldacci's Executive Order 2 FY 04/05 directed the Department of Conservation and the
Department of Administrative and Financial Services' Bureau of General Services to develop
procurement policies that would require, to the extent feasible, the purchase of certified wood and
paper products. To become "certified," wood products must derive from sustainable managed
forests. A draft policy has been developed and is being circulated to stakeholders and various
interested parties, including the wood, pulp and paper industries as well as environmental groups.
It calls for increased percentages of recycled content for paper and tissues consumed in State
government and creates a new standard that sets a yet-to-be-determined minimum percentage
certified content for paper. The policy requires that 10% of the wood that will be incorporated into
public improvement projects be from certified sources.

Environmentally Preferable Procurement Policy
The State of Maine has established a broad range of product procurement practices oriented toward
the preservation of natural resources, the promotion of environmental sustainability and the
protection of the health and safety of employees and citizens. As part of this policy several factors
are considered as part of a best value determination when evaluating purchases, including fuel
efficiency , recycled content percentages, materials content, emissions, waste generation, toxicity,
and recyclability. (Information from Division of Purchases)


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