transportation fuel update
TRANSCRIPT
Transportation Fuel Update
Availability and Cost Issues
Derek Graham
Section Chief, Transportation
NC Department of Public Instruction
Hurricanes Gustav and Ike
• Supply hard to come by
• No LEAs had to cancel classes due to lackof fuel for buses
• Many fuel deliveries on weekends or in thedark of night
School Bus Fuel
• Of the 14,000 school buses in use, all but10 are powered by diesel– 8 Compressed Natural Gas
• $35k premium on engine 10 years ago
– 2 Plug-In Hybrid (Diesel/Electricity)• $226,000 per bus (grant funds)
– Bio-Diesel (e.g. 80% diesel, 20% bio)• Requires no special infrastructure; usable in all
fleets
• 5-50 cent premium
• Already in use in some NC counties
Diesel Fueling of School Buses
Delivered to Bus Garageby Tanker Load
Loaded from Bulk Tanks to Fuel Trucks
Buses Fueled In Parking Areas
• Fuel taken to bus parking areas during theday and dispensed from fuel trucks
– Very efficient fuel delivery system
Remote Fueling
Remote Fueling
State Contract for Diesel
• Public schools do not pay state excise tax,resulting in a lower per gallon cost thanwhat you see at the pump
• Other than the tax exemption, there arenot tremendous price breaks on fuel
– Low profit margin for bidders
– e-procurement fee (6-7 cents/gallon) applies
Price Volatility
• Wednesday, October 1: $3.22 per gallon
• Friday, October 3: $3.03 per gallon
Diesel - 10 Yr Price Per Gallon
0
0.5
1
1.5
2
2.5
3
3.5
4
4.57/1
/1998
1/1
/1999
7/1
/1999
1/1
/2000
7/1
/2000
1/1
/2001
7/1
/2001
1/1
/2002
7/1
/2002
1/1
/2003
7/1
/2003
1/1
/2004
7/1
/2004
1/1
/2005
7/1
/2005
1/1
/2006
7/1
/2006
1/1
/2007
7/1
/2007
1/1
/2008
July 1998………………………………………………………………………..July 2008
KATRINA
10 Year Diesel CostActual vs. OSBM Allocation
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
1997-199
8
1998-1
999
1999
-2000
2000
-200
1
2001-2
002
2002
-2003
2003
-200
4
2004-2
005
2005
-2006
2006
-200
7
2007-
2008
F is c al Y ear A verage
O S B M A lloc at ion
Annual Usage
• Statewide usage:
– 25,000,000 gallons per year for to/from school
– More for activity buses, field trips, etc.
– Actual is more than 25,000,000
• Currently being re-evaluated
2007-2008 School Year
• Biennial budget allocated $1.69 per gallon
– First day of school: $2.20 per gallon
• Worked with OSBM and sent additionalallotments to LEAs
– $7.3 million ($1.69 to $2.00)
– $11.8 million ($2.00 to $2.50)
– $7 million ($2.50 to $2.80)
• Actual per gallon cost: ~$2.90
2008-2009 School Year
• Initial biennial budget: $1.83 per gallon
• Additional legislative appropriation
– $35 million
– Increases per gallon to about $3.23
• Year-to-date cost per gallon thus far: $3.48
– July 1 – August 25 high prices
Future Trends
• Continued price fluctuations appear likely
• OSBM Analysis
– $3.57 per gallon 2009-2010
– $3.61 per gallon 2010-2011
Transportation Fuel Update
Availability and Cost Issues
Derek Graham
Section Chief, Transportation
NC Department of Public Instruction