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Page 1: Vancouver Island Biodiesel Evaluation Study – Final Report · 2017-05-09 · Vancouver Island Biodiesel Evaluation Study – Final Report 1.0 INTRODUCTION This document describes
Page 2: Vancouver Island Biodiesel Evaluation Study – Final Report · 2017-05-09 · Vancouver Island Biodiesel Evaluation Study – Final Report 1.0 INTRODUCTION This document describes

Vancouver Island Biodiesel Evaluation Study – Final Report

For additional information on this project, please go to:

''This Study has been produced with the assistance of the Green Municipal Enabling Fund, a Fund financed by the Government of Canada and administered by the Federation of Canadian Municipalities. Notwithstanding this support, the views expressed are the personal views of the author(s), and the Government of Canada and the Federation of Canadian Municipalities accept no responsibility for them.''

Copyright © 2005 City of Victoria, all rights reserved 2

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VIBES PARTICIPANTS The Vancouver Island Biodiesel Evaluation Study (VIBES), led by WISE Energy and the City of Victoria, included eight fleets from three levels of government, including two municipalities, B.C.’s largest public transport agency, an energy industry services company, a commercial fuel company, and a public school bus company. VIBES started with 17 test vehicles and 12 baseline vehicles. Two teams, Vancouver Island Powerline and the City of Victoria, added additional test vehicles during the study.

A parallel program, the ‘One Tank Challenge’, initiated with the help of one of Canada’s first public biodiesel pumps at the City, led to many other fleets and individuals trying biodiesel in their vehicles during the field test. This level of participation makes VIBES the largest cross-sector biodiesel evaluation study in Canada to this point in time.

VIBES participating fleets include:

BC Mail Plus;

BC Transit;

Canada Post;

City of Victoria;

Columbia Fuels;

District of Saanich;

Sooke School District 62; and

Vancouver Island Powerline.

Copyright © 2005 City of Victoria, all rights reserved 3

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VIBES SPONSORS VIBES was sponsored in part by the City of Victoria, the Federation of Canadian Municipalities, the Province of British Columbia, and by Environment Canada.

Additional support has been provided by BC Transit, Columbia Fuels, VanCity and GEMCo.

Copyright © 2005 City of Victoria, all rights reserved 4

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EXECUTIVE SUMMARY The City of Victoria, in partnership with WISE Energy and funding assistance from the Federation of Canadian Municipalities, The Government of Canada and the Province of British Columbia have concluded the Vancouver Island Biodiesel Evaluation Study (VIBES).

The development of strategies designed to reduce vehicle emissions is a daunting task for any organization and securing a commitment from private and public fleets to adopt these strategies can be equally difficult. VIBES was concieved to meet these challenges by providing a high level of education on the benefits of biodiesel, an opportunity for vehicle operators to try it in real life settings, and to promote industry to invest in local production.

The VIBES project, which ran from December 2004 to June 2005 involved a number of fleet vehicles from across a broad spectrum of sectors. Each participant was required to provide at least one set of identical vehicles (biodiesel and baseline), operating under similar circumstances. The vehicles were monitoried over the period of the study for maintenance, performance and fuel economy. Statistics were collected and compiled by WISE Energy and reported to participants through the project period.

While fuel economies differed among vehicles, (most were the same or better) all participants noted no significant changes to maintenance needs or performance. A marked reduction in exhaust opacity was noted by all participants. The higher costs of biodiesel, due largely to the need to import the product, was seen by all participants as a deterent to full time use.

As part of the education component of the VIBES project, the City of Victoria launched the“One Tank Challenge” in March of 2005. This side project was intended to provide the same opportunities to use biodiesel, on a smaller one time scale, to all operators of fleet vehicles within the Greater Victoria region. We were surprised and pleased at the response, particularly from the general public who operated diesel powered cars and light trucks.

As a result of the VIBES project, we feel we have achieved the first steps in securing a permanent place for biodiesel on the local scene. Biodiesel has the potential to move our community towards a more sustainable transportation future and provide meaningfull reductions in harmfull tail pipe emissions.

Respectfully submitted:

Wayne Carlow Manager, Operations Division

City of Victoria Engineering

Copyright © 2005 City of Victoria, all rights reserved 5

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Copyright © 2005 City of Victoria, all rights reserved 6

Capital City Paving filling up at Victoria’s first biodiesel pump (Mar/05) at the City of Victoria Operations Division

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Table of Contents

VIBES PARTICIPANTS....................................................................................................................3

VIBES SPONSORS.........................................................................................................................4

EXECUTIVE SUMMARY.................................................................................................................5

1.0 INTRODUCTION...............................................................................................................10

2.0 PROJECT SCOPE .............................................................................................................13

2.1 Project Approach........................................................................................................................... 13

3.0 PROJECT OVERVIEW.......................................................................................................17 3.1 Project Relevance.......................................................................................................................... 17 3.2 Project Background ....................................................................................................................... 17 3.3 VIBES Objectives ............................................................................................................................. 17

4.0 PROJECT DESCRIPTION...................................................................................................19

4.1 Project Planning .............................................................................................................................. 19 4.2 Project Participants ........................................................................................................................ 19 4.3 Engine Warrantees ......................................................................................................................... 21 4.4 Fuel Ordering ................................................................................................................................... 21 4.5 Storage, Blending and Distribution .............................................................................................. 21 4.6 Fuel Pricing ....................................................................................................................................... 23 4.7 Vehicle Preparation ....................................................................................................................... 24 4.8 Data Collection............................................................................................................................... 24 4.9 Preliminary Test Period.................................................................................................................... 24 4.10 Conduct Field Test .......................................................................................................................... 25 4.11 Project Wrap-up.............................................................................................................................. 25 4.12 Project Communications............................................................................................................... 25 4.13 The “One Tank Challenge” ........................................................................................................... 27

5.0 VIBES PARTICIPANT RESULTS...........................................................................................31 5.1 VIBES Participant Results: Conclusions and Recommendations ........................................... 36

6.0 EMISSIONS REDUCTIONS ................................................................................................39 6.1 ERC Background............................................................................................................................. 39 6.2 VIBES Emission Reduction Calculations....................................................................................... 39 6.3 Emission Reduction Credit Contractual Framework................................................................. 39

Copyright © 2005 City of Victoria, all rights reserved 7

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6.4 The Current Potential for Emission Reduction Credit Sales ...................................................... 40

7.0 VIBES SUBPROJECTS........................................................................................................43

7.1 ULSD................................................................................................................................................... 43 7.2 Develop Project Plan for a B.C.-marine Biodiesel Evaluation Study ...................................... 43

8.0 CONCLUSIONS ...............................................................................................................45 8.1 Biodiesel Growth in the Region .................................................................................................... 45 8.2 Storage and Handling Recommendations................................................................................ 46 8.3 Overall Recommendations........................................................................................................... 46 8.4 Financing and Implementation Plan for the Preferred Option(s) .......................................... 47

APPENDICES ..............................................................................................................................49

APPENDIX A: ABOUT VIBES PARTICIPANTS & SUPPORTERS................................................51

BC Mail Plus................................................................................................................................................ 51 BC Transit.................................................................................................................................................... 51 Canada Post ............................................................................................................................................. 52 City of Victoria........................................................................................................................................... 52 Columbia Fuels.......................................................................................................................................... 53 Corporation of the District of Saanich.................................................................................................... 53 School District 62 ....................................................................................................................................... 54 Vancouver Island Powerline.................................................................................................................... 54 BC, Ministry of Environment...................................................................................................................... 55 Environment Canada .............................................................................................................................. 55 Federation of Canadian Municipalities ................................................................................................. 55 GEMCo. ..................................................................................................................................................... 56 VanCity ...................................................................................................................................................... 56

APPENDIX B: BC TRANSIT DETAILED FUEL ECONOMY RESULTS.............................................57

APPENDIX C: ACKNOWLEDGED BIODIESEL BENEFITS ........................................................59

Emission Reductions ................................................................................................................................ 59 Unmatched Energy Balance................................................................................................................. 59 Ease of Use................................................................................................................................................ 59 Performance............................................................................................................................................. 59 Safety ......................................................................................................................................................... 60 Human Health .......................................................................................................................................... 60

APPENDIX D: SAMPLE LETTER OF INTENT WITH VIBES PARTICIPANTS.................................61

APPENDIX E: ABOUT WISE ENERGY .......................................................................................62

Copyright © 2005 City of Victoria, all rights reserved 8

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List of Tables and Figures

Table 1 VIBES Participant Vehicle Details ............................................................................................... 19 Table 2 Transportation Diesel Tax Component s Cents/Litre – Victoria Region ............................... 24 Table 3 VIBES Fleet Results ......................................................................................................................... 31 Table 4 VIBES Downstream Lifecycle GHG and CAC Reductions* ................................................... 39 Table 5 BC Transit VIBES Fuel Economy Details ...................................................................................... 57

Figure 1 VIBES Regional Outdoor Temperatures (Victoria Airport)..................................................... 22 Figure 2 VIBES Fuel Pricing ......................................................................................................................... 24 Figure 3 VIBES Web Site Stats – Dec. 2004 – June 2005 ........................................................................ 26 Figure 4 BC Transit VIBES Fuel Economy Summary Chart..................................................................... 36

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1.0 INTRODUCTION This document describes the purpose, approach and findings of the Vancouver Island Biodiesel Evaluation Study project.

The vision for the VIBES (Vancouver Island Biodiesel Evaluation Study) Project was to build local fleet operator awareness in B.C., and to continue to extend the growing awareness across Canada, that industry standard biodiesel is a fully viable alternative fuel for both fleet and individual diesel vehicles. Further, by having Capital Regional District (CRD-based) business and agencies adopt biodiesel into their fuel strategies there is an opportunity to reduce significant greenhouse gas (GHG) emissions in our community each year.

To achieve this vision, and to provide community leadership, VIBES participants wanted the project to include as many strategic transportation sector representatives, and therefore as many cross-purpose vehicle types, as possible, to maximize exposure and awareness for biodiesel’s many benefits.

Biodiesel is a safe, non-toxic, biodegradable, renewable fuel. Biodiesel can be mixed with any percentage of petro-diesel to meet a variety of purposes. Where B100 is pure biodiesel, a B20 blend was used in VIBES (20% Biodiesel + 80% petro-diesel). For additional information about biodiesel’s many benefits please see APPENDIX C.

Medium term objectives . To communicate project findings and the many benefits of this renewable fuel to as many fleets, organizations and individuals as possible, and to expand biodiesel’s use throughout Vancouver Island, B.C., and Canada. To this end, the project team and participants conducted presentations, contacted other fleets and organizations, and provided on-going project statuses to partners and to the media.

Longer term objective. To build a sufficient market base to support the development of BC based biodiesel production. This will help ensure fleets have on-going access to a much more cost competitive and secure supply of quality biodiesel. In itself this will be a strong incentive toward helping the market grow further, since the current need to import fuel for testing/market growth purposes makes it an expensive proposition for interested fleets.

These objectives resulted in Canada’s largest cross-sector biodiesel study being initiated in December, 2004 and running through till June, 2005. Participants represented three major Canadian transportation sectors including industry (Columbia Fuels and Vancouver Island Powerline), public transportation (BC Transit and Sooke School District 62) and three levels of government (BC Mail Plus, Canada Post, City of Victoria and the District of Saanich).

The variety of vehicles that participated as a result of this cross-sector objective resulted in a number of biodiesel testing firsts in Canada. It is believed to be the first time industry and government have participated in a biodiesel test together. It is also the first time a federal fleet (Canada Post) has participated in a biodiesel evaluation study, the first time a B.C. provincial fleet (B.C. Mail Plus) has participated in a biodiesel evaluation study, and only the second time a Canadian school bus company (Sooke School District 62), has participated in a biodiesel field test. It is also the first biodiesel evaluation that B.C.’s largest public transit operator (B.C. Transit) has conducted.

These cross-sector firsts were extremely important, because it means VIBES became a focus for many other fleets that had a growing interest in biodiesel. It also meant that it was absolutely critical that VIBES was successful.

The VIBES team is happy to report that the study has been a complete success with most, if not all, participating fleets stating they hope to continue using biodiesel, if the costs can be made competitive, and the quality and continued supply can be assured. As a further testament by the participants, Vancouver Island Powerline and the City of Victoria added additional participating vehicles while the field test was underway.

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In addition, participants have been contacted by other organizations within their sectors asking about biodiesel and how to get involved. Capital City Paving, the Greater Victoria School District, and Gray Line are examples of fleets that have directly participated. The Tofino Bus Company also started using this biodiesel from another island location. The City of Nanaimo, the Capital Regional District , the District of Port Alberni, and the City of Kamloops are just a few of the examples of fleets that have contacted a VIBES team member to ask how they might also get involved.

Further, an ever expanding number of individuals are participating in the City of Victoria’s One Tank Challenge some of whom are listed at the start of this document.

We have also received confirmation that as a direct result of VIBES, Canada Post, the largest diesel fleet in Canada, is now testing biodiesel in Ontario. This will hopefully lead to many other federal fleets testing and adopting biodiesel. In addition, through discussions with our team and B.C. Transit, Translink will now conduct a six month evaluation of a number of fuels including biodiesel.

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Copyright © 2005 City of Victoria, all rights reserved 12

BC Transit New Flyer Low Floor in service in Victoria

1998 New Flyer

2002 Dennis Dart

2002 Dennis Trident

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2.0 PROJECT SCOPE The VIBES project was conducted over winter and summer months with a cross-sector level of participation to ensure a wide variety of vehicle types and service functions. Each selected participant was asked to provide one or more pairs of test and baseline vehicles and a B20 biodiesel blend was used across all the test vehicles.

The fuel consumption, mileage and maintenance requirements/differences between the test and baseline vehicles were to be monitored and reported by the participants on a regular basis. Communications on the collective status of VIBES would be distributed on a regular basis.

2.1 Project Approach The purpose of this field test project was to monitor vehicle performance over a number of industry sectors and vehicle types within those industry sectors.

The teams are tracking mileage, fuel consumption, overall performance and any maintenance requirements that fall outside normal practice.

To achieve VIBES main objectives, the scope for the project included a number of primary activities supplemented by a number of parallel sub-projects. The primary activities were:

Phase 1: Project Planning The purpose of this phase was to:

Identify the sectors that would most benefit from the adoption of biodiesel in their fuel strategies and then select one or two leadership fleets within each of these sectors.

Once the selected fleets had provided letters of intent, a number of planning meetings were held and participating fleets identified the scope of the project within their organizations and the vehicles that would participate.

Project fuel requirements were then estimated and infrastructure requirements determined and planned.

The VIBES web-site (www.vibesproject.ca) was prepared by the City of Victoria and the VIBES project launch was planned by representatives from a number of the participating fleets.

Phase 2: Project Initiation The purpose of this phase was to:

Put the plan into action by setting up the fuel storage and delivery infrastructure for each participant and to identify the project fuel provider. As the test was beginning in mid-winter additional fuel handling and storage precautions were put into place as a safety measure (these and other quality assurance practices are discussed in more detail in Section 4.5 of this document).

Prepare, test and place on-line the Project Data Capture Form.

Prepare the communications materials including project logo, media releases and project decals for the launch, for the participating vehicles, and for on-going communications efforts.

Conduct a final Operator’s review meeting to disseminate project expectations and final planning information.

Phase 3: Vehicle Preparation The purpose of this phase was for the participants to:

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Prepare the participating test vehicles by removing existing fuel from the tank, and replacing oil, and oil and fuel filters.

Fill baseline and test vehicles with baseline and blended fuel respectively.

Record vehicle pairs mileage.

Phase 4: Preliminary Test Period The purpose of this phase was to:

Operate vehicles on the B20 blend for two weeks prior to the actual test initiation. This ramp-up phase was to allow the biodiesel (a solvent) to remove existing petro-diesel residue buildup from the test vehicle fuel systems.

Have Operators check fuel and oil filters on a regular basis through this preliminary test period and record observations. If needed, participants were asked to replace filters one more time prior to conducting the field test.

Phase 5: Conduct Field Test The purpose of this phase was to:

Run all test vehicles on the B20 blend for a 24 week period. Operators were asked to monitor and record mileage and fuel consumption on all test and baseline vehicles. Conduct regular vehicle maintenance schedules and record service/component findings.

Refuel vehicles as necessary, while the distribution and fuel ordering would continue on an as needed basis.

Have Operators provide results, findings and general observations via an on-line form on a monthly basis. This feedback was collected, collated and summarized for on-going communications purposes and for this report.

Perform general team communications, project management, logistics management and administration on an on-going basis.

Draft the VIBES Final Report format and content and conduct a review of the DRAFT with participant and sponsor representatives.

Phase 6: Project Wrap-up and Conclusions The purpose of this phase was to:

Record and analyze final mileage and fuel used in test versus baseline vehicles or test versus historical average.

Have Operators provide an accounting of any maintenance requirements that differed from standard maintenance practice.

Estimate emissions reductions, based on statistical averages, realized by the test versus baseline vehicles and realized by the full VIBES project.

Summarize findings and prepare DRAFT final report. Conduct quality review and update cycle on the DRAFT and then finalize and deliver final VIBES Project Report.

Phase 7: Communications Program The purpose of this phase was to:

Prepare a VIBES Web-page to introduce VIBES, the purpose, the participants and communicate VIBES project developments.

Conduct communications design/planning meetings.

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Design a project decal to go on all participating vehicles, the website and in all media and document release material.

Organize project launch and media release packages.

Provide regular media releases and make presentations e.g. VIBES status at the Biodiesel-101 conference to raise the awareness for VIBES and biodiesel.

Prepare and launch the ‘One Tank Challenge’ inviting other fleets, organizations and individuals to come to the City of Victoria and try biodiesel in their vehicles. Media releases and interviews were conducted for the ‘One Tank Challenge’. A telephone and letter campaign was conducted to invite other fleets to participate.

Monthly updates and an interim report were prepared and sent to participants, sponsors and partners.

Phase 8: Emissions Tracking The purpose of this phase was to:

Development of a GHG credit regime

Summarize findings for report

Parallel sub-projects were to: Research the possibility of a ULSD-Biodiesel field test; and

Research the interest in a marine-based biodiesel evaluation study.

To a large extent the final approach depended on the individual objectives of the participant fleets and project sponsors. It was best to provide the guidelines and infrastructure but, as much as possible, have the participants set their individual goals and levels of participation.

For example, although it was considered, for several reasons it was decided that testing tailpipe exhaust emissions would not be within the scope of this project.

Biodiesel’s emission reduction benefits have been well proven from extensive (in research labs and many millions of kilometers of road testing both in the E.U. and in the U.S.).

Emissions testing is extremely expensive and not within the budget allocated to this project.

The significant emission reduction associated with biodiesel use is CO2, however, its reductions are based on a lifecycle analysis, due to biodiesel being carbon neutral. Tailpipe CO2 testing of biodiesel blends do not show any significant changes from petro-diesel.

At the same time, due to the variety of participants and business purposes, it was important for the management team to provide the overall organization, continuity and on-going internal and external communications to ensure team and project objectives were met.

The remainder of this document describes the project components, results and conclusions in more detail.

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Copyright © 2005 City of Victoria, all rights reserved 16

City of Victoria 1997 Ford Refuse Packer

“From the City’s perspective the VIBES project has been a success.

Aside from convincing myself and our organization that biodiesel is a bona fide alternative to traditional fuels, the VIBES project has succeeded in demonstrating to, and raising the awareness of the public, on the merits of alternative environmentally sound fuel choices.

The City is pleased to have been able to participate in this project and hope that our efforts have contributed in some way to encouraging others in our community to adopt their own goals and strategies to promote environmental stewardship.”

Wayne Carlow Manager, Operations Division

City of Victoria

City of Victoria 1997 GMC Service Truck

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3.0 PROJECT OVERVIEW 3.1 Project Relevance

The transportation sector is responsible for 25% of Canada’s green house gases (GHG) emissions, and upwards of 40% in urban areas. Approximately 70% of GHG emissions from transportation are a result of a combination of people driving cars and goods being moved by truck.

Cost effective GHG reduction strategies for the transportation sector have proven difficult, in particular heavy duty trucks and buses. Many proposed alternatives to diesel fuel require significant engine modifications in addition to significant refueling infrastructure (i.e. natural gas, hydrogen)

Current petroleum consumption patterns cannot be sustained given the science behind global climate change, and the lurking ‘peak oil’ crisis. In the next two decades, an enormous shift in the way we transport our goods and ourselves will become necessary.

As many other countries in the world have learned, biodiesel is an excellent means to supplement petro-diesel use while at the same time introduce many environmental and functional benefits. Biodiesel represents an easy to integrate, cost effective alternative. These many positives have led biodiesel to become one of the top two fastest growing alternative fuels in the world.

Although biodiesel will likely never replace the current consumption volumes of fossil diesel, in combination with improved engine efficiencies and conservation, it has the ability to make a significant contribution to solving the liquid energy puzzle.

3.2 Project Background The development of regional infrastructure to produce and distribute biodiesel is needed to ensure the market has a secure supply of cost-effective biodiesel. Prior to developing this infrastructure, a market base must first be developed to ensure the end-user market and distributors have some knowledge and comfort with the fuel, and to ensure the biodiesel producer has a proven market for their fuel.

This message was conveyed over and over in market research performed by WISE Energy in the Capital Regional District (CRD). Although biodiesel has been well proven both for performance and emissions reductions elsewhere in the world, all of the large fleets interviewed expressed an interest in using biodiesel, however, each of them wanted to test the fuel in a small percentage of their fleet prior to adopting it fleet wide.

3.3 VIBES Objectives The key objectives for initiating the VIBES project were:

To allow participating fleets to test biodiesel as an alternative fuel that will help them meet their GHG reduction strategies and demonstrate corporate social responsibility.

Demonstrate to other diesel fleets and diesel vehicle owners the effectiveness of biodiesel to reduce the impact their operations and vehicle use have on the environment while improving engine performance and longevity.

Educate the public specifically about biodiesel and more generally about global climate change and how the use of renewable resources for our energy and transport demands will help turn the tides on this enormous global problem.

Pave the way for local biodiesel production, thus creating a secure supply of competitively priced biodiesel for local fleets, marine vessels and passenger vehicles.

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District of Saanich 2001 GMC Service Truck

“As a participant of the Vancouver Island Biodiesel Evaluation Study (VIBES), The Corporation of Saanich are pleased to say that the use of biodiesel in our test vehicles has been positive. From an operational point of view we see no reason not to continue using biodiesel in these vehicles, and to expanding the usage to other vehicles.

Upon completion of this study Saanich hopes that there will be enough interest in the community to supportthe establishment of a local market for the product at a competitive price. If a steady supply of quality product is available at an economic price then this will allow Saanich the opportunity to once again support our corporate initiative to contribute to a cleaner environment.”

Marie Van Dyk Director of Purchasing Services The Corporation of the District of Saanich

District of Saanich 2000 Volvo Refuse Packer

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4.0 PROJECT DESCRIPTION 4.1 Project Planning

The major goal of VIBES was to increase biodiesel’s profile in B.C., while assisting its growth across Canada. For this reason it was important to include fleets drawn from a cross-section of sectors and functions. It was also important to ensure these fleets were highly representative within their sector in order that like fleets could draw from their example.

Once selected it was important to ensure the participants had a common goal but could participate at the level that met their on-going business requirements. To assist this, a signed Letter of Intent was customized with each participating fleet representative. (See sample letter in Appendix D).

It was important to leverage the participants experience so other fleets and individuals would take advantage of the opportunity to try biodiesel for their own purposes. It was also important to capture their findings and provide that information to other fleets interested in trying biodiesel in the future. We have attempted to do that with this document.

4.2 Project Participants The cross-sector approach to participation resulted in a wide variety of vehicle types and service functions. They included:

Table 1 VIBES Participant Vehicle Details

Participant Test Vehicle Type(s) Baseline Vehicle Type(s) Vehicle Photos

BC Mail Plus

Ford 350 cubic inch V-8 diesel 1 ton cube van with 12 foot box (1991). Town/local urban bulk mail pick and delivery traveling between 700 and 1000kms/month.

Similar vehicle history.

BC Transit Six conventional transit buses on biodiesel. These are Double Decker 9035 & 9036, Dart 9069 & 9070, and Newflyer Low floor 9888 & 9889.

Testing 1 of each pair of the 3 different vehicle and engine types on the B20 to provide an averaging factor.

The Darts are Cummins Diesel (2002) 35-foot accessible vehicles used for transporting people throughout the Greater Victoria area.

The NEW FLYER Detroit Diesels (1998) are 40-foot accessible vehicles used as above.

Three twins to the test buses, one of each type.

Comparisons are performed against the baseline vehicle of each pair and against the representative fleet average on a month by month basis.

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The Trident Cummins Diesel (2002) 12-metre accessible double deck vehicle transports used as above.

Canada Post A 2002 Sterling 5 ton truck w 33134 kms for test vehicles ~ 4,300 litres fuel for 6 months.

A 2002 Sterling 5 ton P.V.N 21138 for baseline vehicle. 36368 kms.

City of Victoria

A 1997 Ford CF800 Refuse Collector/Packer – Cummins 3000 L, 8.3L- typical 6 month fuel use = 3054L. Large, single axle.

A 1997 GMC Diesel 1100L, 6.5 L 1 ton. Transports materials and equipment for City sidewalk maintenance.

A 1997 Ford CF800 Refuse Collector/Packer – Cummins 3000 L, 8.3L- typical 6 month fuel use = 3054L. Large, single axle.

A 1997 GMC Diesel 1100L, 6.5 L 1 ton. Transports materials and equipment for City sidewalk maintenance.

Columbia Fuels

International 4700 s/a (1996). DT466E eng, tank body. Home heating fuel delivery.

District of Saanich

A 2000 Volvo Cummins Ism 11L. solid waste packer.

A 2001 GMC CAT 3126B 7.2 L Crew Cab. A field service truck.

2 similar vehicles.

Sooke School District 62

A large transport Bluebird bus (2004). School children passenger bus.

Fleet history average.

Vancouver Island Powerline

GMC, Vehicle Weight 15675 kg, Top Kick C8500 Diesel with an Altec AN650 Aerial Device (2000). A 7.2L Cat 3126B diesel, 230 gross hp.

Ford F700 with an Altec AN650 Aerial Device, Vehicle Weight 12,600 kg (1991). Ford/6.6 liter

A GMC 1998 Topkick C8500 with a Pitman MN50 aerial device (1998). A 6.60 Cat 3116 diesel, 215 gross hp.

Chevrolet flatdeck with Pitman HIAB, Vehicle Weight 12,800 kg. (1988).

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4.

sel uld be sure that their biodiesel suppliers provide liability coverage on the biodiesel and its

cts

ppliers,

ation is underway in the diesel engine industry

3 Engine Warrantees There are a variety of statements about biodiesel use from engine/vehicle manufacturers, including some that make reference to warranty. Engine and vehicle manufacturers provide a material and workmanship warranty on their products. Such warranties do not cover damage caused by some external condition. Thus, if an engine that uses biodiesel experiences a failure unrelated to the biodiesel use, it must be covered by the OEM’s warranty. If an engine experiences a failure caused by biodieseluse (or any other external condition, such as bad diesel fuel), the damage will not be covered by the OEM’s warranty, but should be covered by the fuel supplier’s general liability insurance. New biodieusers shoblends.

Many engine OEMs are acknowledging biodiesel use by stating their observations about harmful effe(or the lack of effects) with various blends in their equipment. Most OEMs declare a lack of harmful effects for B5 and lower blends based on a statement by the leading fuel injection equipment suas long as the biodiesel meets D6751 and/or the European biodiesel specification. Some OEMs recognize higher blend levels such as B20. More evalurelated to biodiesel and its effects on diesel engines.

For an updated list of OEMs and their positional statements on biodiesel, visit the National Biodiesel Board Web site at: http://www.biodiesel.org/resources/fuelfactsheets/standards_and_warranties.shtm.

VIBES participants, along with many other fleets throughout North America, with vehicles still on warranty felt comfortable with B20’s well proven performance.

4.

ased on the following requirements; quality, availability, distribution

s of B100 biodiesel for the 6 month test period. This fuel

tail g

HG reductions and their associated credits (this will be discussed in further detail in Section 6).

4. ge, Blending and Distribution

4 Fuel Ordering Several months prior to the commencement of the VIBES project, WISE began discussions with biodiesel suppliers. A supplier was selected bexperience, and of course price.

Based on information provided by VIBES participants, with an additional 20% contingency, we estimated the use of a maximum of 48,000 litrewould be delivered in two ~24,000 litre loads.

A memorandum of understanding (MOU) was signed with the biodiesel supplier to set out the terms and conditions associated with the supply of biodiesel for the VIBES project. The MOU covered in deall issues related to biodiesel quality, liability, and delivery. The MOU also provides the legal wordinnecessary to ensure that the participating fleets can account for their G

5 StoraStorage Vancouver Island owned, Columbia Fuels was chosen to store, blend and distribute the fuel to the VIBESparticipants. A 35,000 litre above ground storage tank was made available at Columbia’s yard to storthe B100 biodiesel. 2 weeks prior to fuel delivery, the tank which had previously held kerosene, wa

e

s steam cleaned. The tanks auxiliary air vent was left open during dry days for two weeks to allow

x-

l line d

maintenance.

straight six-turbo diesel.

These vehicles both provide heavy-duty service in electrical line construction and maintenance.

Detroit Diesel/Inline siturbo charged.

These vehicles both provide heavy-duty service in electricaconstruction an

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residual moisture to escape. A dessicant breather was installed on the main air vent of the tank to prevent moisture from entering the tank during use.

Due to B100’s non-hazardous status, it can be stored in single walled tanks. When stored in above ground tanks in cold climates, B100 should be kept heated and agitated. The double-walled, vacuum-sealed tank that Columbia Fuels made available for VIBES was designed for the storage of petroleum products that are hazardous and do not have low-temperature issues. To avoid compromising the integrity of the storage tank with new openings, we were unable to install heating elements or agitation pumps.

In order to address the potential low temperature issues which may arise during the test, we decided to blend 20% stove oil into the B100 resulting in B80. Stove oil is very similar to kerosene or #1 diesel, and has an extremely low cold filter plugging point (CFPP). If the B100 storage tank had more space in it, we would have just added 50% #2 diesel which is cheaper and has a higher energy content.

We felt the B80 blend we ended up with would bring the CFPP down to a level that would be sufficient for Victoria’s generally mild winters, without running the risk of the piping from the storage tank gelling up.

Two 1,000 litre tanks (plumbed together) with a filter and pump were installed at the City of Victoria’s public works yard (this was later upgraded to a 9,000 litre underground tank and card-lock system).

A 4,500 litre storage tank with a filter and pump were installed at BC Transit’s yard.

Dessicant breather moisture control devices were installed on all storage tank vents to prevent airborne humidity from entering the tank. This moisture will condense as tank temperatures change during the day. This condensation can then impact the fuel quality and storage life of the biodiesel.

Figure 1 VIBES Regional Outdoor Temperatures (Victoria Airport)

-10-505

1015202530

12/10

/2004

12/17

/2004

12/24

/2004

12/31

/2004

1/7/20

05

1/14/2

005

1/21/2

005

1/28/2

005

2/4/20

05

2/11/2

005

2/18/2

005

2/25/2

005

3/4/20

05

3/11/2

005

3/18/2

005

3/25/2

005

4/1/20

05

4/8/20

05

4/15/2

005

4/22/2

005

4/29/2

005

5/6/20

05

5/13/2

005

5/20/2

005

5/27/2

005

6/3/20

05

6/10/2

005

Date

Tem

p.

Temp HighTemp Low

Blending As stated previously, a B20 blend was chosen by VIBES participants. Biodiesel is typically blended for four key reasons; price, cold weather, solvency and original equipment manufacturers (OEM) recommendations.

The B80 blend (80% biodiesel and 20% stove oil) was splash blended at a ratio of 3:1 with low sulphur #2 diesel (rather than the usual 4:1 for B100) to end up with B20.

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Biodiesel has a slightly higher specific gravity (~0.88) than diesel (~0.835). Typically when splash blending into a tanker truck from the top, the diesel is loaded first and the biodiesel is loaded second so that as if falls through the diesel it blends into it. The simple action of driving to the participant storage sites ensures a complete blend.

Distribution BC Transit was given their own B20 refueling infrastructure as they required ~1,200 litres of B20 per day. The City of Victoria’s refueling pump was used for their own vehicles, as well as for BC Mail Plus, Canada Post, the District of Saanich, and Vancouver Island Powerline. The Sooke School District 62 test bus was refueled directly from Columbia’s biodiesel delivery truck. And of course, Columbia Fuels refueled themselves.

Columbia Fuels set up a distribution system for the fleets, which had them delivering B20 every two days to BC Transit and every four days to the City of Victoria and SD 62.

4.6 Fuel Pricing Biodiesel Pricing Overview Price sensitivity remains the largest market acceptance obstacle for the biodiesel industry to overcome. The price for biodiesel is mainly driven by the cost of the feedstock. The majority of biodiesel produced in the world is made from rapeseed/canola (Europe) or soybeans (US). The market prices for these commodities are driven by their main use which is for human consumption, whereas biodiesel use is a small fraction of the market. This means that the price for biodiesel is not only impacted by petroleum prices, it is also affected by vegetable oil prices.

Biodiesel is also made from lower cost feedstocks such as used cooking oils (yellow grease), tallow and other rendered animal and fish oils. These products are all commodities as well as they are used in the animal feed industry, so their prices too will be driven by markets other than petroleum.

VIBES Pricing Given there is no current commercial scale biodiesel production in BC, biodiesel was imported from out of province. The base feedstock for the biodiesel was yellow grease. The additional cost of importing the biodiesel adds significantly to the cost.

Figure 2 shows the biodiesel and diesel pricing throughout the VIBES project.

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Figure 2 VIBES Fuel Pricing (prices include all applicable taxes, see table 2 below)

70.0075.0080.0085.0090.0095.00

100.00105.00110.00115.00120.00

12/10/04 1/10/05 2/10/05 3/10/05 4/10/05 5/10/05 6/10/05Date

cent

s/lit

re

B20Columbia Fuels Diesel RackB100

Table 2 Transportation Diesel Tax Component s Cents/Litre – Victoria Region

Diesel B100 B20 Federal Excise 4.00 0 3.20 BC Transportation Financing Authority 6.75 0 * 5.40 BC Transit Tax 2.50 0 * 2.00 Provincial Diesel 8.25 0 * 6.60 Subtotal 21.50 0 17.2 Goods and Services Tax (GST) 7% on total 7% on total 7% on total

* Biodiesel portion of blend exempt from provincial taxes in blends between B5 and B50

4.7 Vehicle Preparation No vehicle changes/preparations were made other than adding the VIBES decal in a highly visible location on the participating vehicles.

4.8 Data Collection An on-line data collection form was provided for participants to record their fuel usage and period mileage (as applicable). Participants were also asked to report on general overall and specific detailed observations, maintenance requirements and changes from normal maintenance practices and cycles,

Participants were asked to submit these reports on a monthly basis.

4.9 Preliminary Test Period Due to biodiesel’s cleansing effect on fuel tanks and fuel lines, it was recommended to the participants that they monitor their fuel filters for a two week period, and then change them to ensure the vehicles were running at optimum performance.

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In reality, because biodiesel’s cleansing effect is so diluted in a B20 blend, filters reportedly only clog up ~3% of the time when vehicles switch to B20.

Many of the fleets chose to change the filters at the two week point, while some saw no reason to, as the vehicles showed no signs of filter plugging.

Some of the fleets also chose to change the oil prior to commencing the project in order to perform comparisons of the test vehicle oil with the baseline vehicles oil.

4.10 Conduct Field Test The project was initiated on December 10th, 2004 and wrapped up on June 10th, 2005. This allowed participants to try biodiesel over a number of seasonal variations and gain a good understanding of its potential. Participant feedback is detailed in Section 5 of this document.

4.11 Project Wrap-up Participants were asked to take final fuel volume and mileage totals to complete the test on June 10th. They were then asked to summarize their VIBES experience for inclusion in this document.

Participants were also asked if they would provide a letter summarizing their experience and whether they would try and recommend biodiesel to others in the future.

4.12 Project Communications A communications committee comprising representatives from the various project stakeholders (fleets, funders, and WISE Energy) was formed in September 2004. The committee had four productive meetings prior to the launch of the project.

The major tasks for the committee to organize, prior to the official launch of VIBES were; designing a project logo and decal, setting up the project website and the launch itself.

Logo The communications committee decided to adopt the biodiesel logo developed by Natural Resources Canada (NRCan) for the top left hand side of the logo. In order to let the public know what biodiesel

was, when viewing the logo, we decided upon a tagline that would make it clear. The project website was written at the bottom in a large font so that anyone interested in learning more, would be able to do so easily.

The City of Victoria printed up the logos for all of the fleets, and at least one decal was added to each of the participating vehicles in a highly visible location.

Website – www.vibesproject.ca In order to make the details and results of the VIBES project available to the public, it was decided that a project website would be necessary. The City of Victoria designed and hosted the VIBES website. Wayne Carlow, the City’s Operations Manager, and WISE prepared the initial content for the website. The City provided updates to the site.

The following table highlights the VIBES web stats for the duration of the project.

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Figure 3 VIBES Web Site Stats – Dec. 2004 – June 2005

0

200

400

600

800

1,000

1,200

1,400

11/2912/27

01/2402/21

03/2104/18

05/1606/13

Visi

ts

Media Launch A media advisory was sent out to local media one week prior to the event notifying them of the launch. The event was located at the City of Victoria’s Operations Division. This is the same location where five of the fleets would be refueling for the project. Each of the participants brought a vehicle for display purposes to showcase the wide spectrum of test vehicles participating in VIBES.

The events speakers list included: Mike Boyd of WISE Energy as MC, Alan Lowe - Mayor of Victoria, Jeff Bray - MLA Victoria / Beacon Hill, Don Amos - Mayothe Town of Sydney and Chair of the

r of Victoria Regional Transit System and

esented at the launch. The coverage that the

la c ed:

(plus one cartoon, )

Hugh Roberts - Fleet Challenge BC.

The local media were well repr

Total Visits – 7,910

Average Visitors per Day – 36

Average Visit Length – 8:44

Median Visit Length – 3:02

Unique Visitors – 1,825

Visitors Who Visited More Than Once – 442

City of Victoria Mayor Alan Lowe speaking at

VIBES launch

un h generated includ

2 T.V. news reports

2 print media articles

4 radio news stories

Write up in Biodiesel Magazine

VIBES Project Ongoing Communications In the he launch, the local media c ti erest in the project including:

ns)

cal sustainability e means.

months following ton nued to show an int

3 T.V. news reports

1 T.V. story (over 5 mi

2 print media stories

In addition to the media, biodiesel Q&A brochures (with VIBES info) were made available to the public on BC Transit buses, by VIBES fleet operators questioned by the public, and at various looriented events. Over 1,500 of these brochures were distributed through thes

The website was also updated with new information throughout the project.

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WISE Energy presented the VIBES project on two separate dates. The first was in front of over 100 fleet representatives at the Biodiesel 101 all-day workshop held in Vancouver BC on March 30th, 2005. The

BC on

ment

got out, many fleets and individuals inquired about access to biodiesel. Through the City of Victoria’s leadership and enthusiasm for biodiesel, the “One Tank Challenge” was launched on March

4.rd-

sel pump was painted and labeled appropriately. This

dia advisory was also sent out prior viting them to come in and see the first fleets taking the “One Tank Challenge” (OTC). came out to ask questions and film the event.

second presentation was at the Coast Waste Management Association’s AGM held in Victoria,April 15th, 2005.

Articles about VIBES, written by WISE Energy, were published in the Coast Waste ManageAssociation’s (membership of over 100 Island companies) quarterly newsletter in April and the Island Equipment Owners Association (over 300 regional members) monthly newsletter in April.

As the word

14th, 2005.

13 The “One Tank Challenge” On March 14th, the City of Victoria set up the first biodiesel calock pump in BC. In order to do this, they had one of their underground fuel storage tanks emptied and flushed. It was then filled with B20. Their refueling island was cleaned up and the biodienew pump would also then be used by VIBES fleets for ongoing refueling.

VIBES participants, led by the City of Victoria, challenged other fleets in the region to come in and fill up one tank full of B20 and try it for their own purposes.

Every effort was made to make biodiesel access at the centrally located city yard no different than diesel refueling, so that regional fleets had no excuses to not come and try it out.

One week before the launch, 150 regional fleets were sent mail outs inviting them to come on in to the City’s biodiesel pump and fill up with one tank full of biodiesel. A meto the launch inTwo TV stations

OTC Results The message about the OTC was communicated to regional fleets through direct and indirect methods (phoneregi

1. d

hat they should spend more for this highly beneficial fuel proved difficult. This h

3. biodiesel use e

s not marketed to individuals at all, however, people managed to find out bout it, and get in contact with the City of Victoria or WISE Energy to find out how to get access for eir passenger vehicles.

calls, mail outs, articles in newsletters, and media coverage). Direct communication with onal fleet managers demonstrated an overall reluctance to try biodiesel based on several factors:

Price – VIBES took place during a period of time that saw the price of oil increase dramatically. Many fleets were still grappling with increased operating expenses due to higher fuel costs, anconvincing fleets tfurther exemplifies the need for price neutral biodiesel, which can only be achieved througlocal production.

2. Engine Warrantees – Fleets with newer vehicles on warranty were reticent to use biodiesel, largely due to OEM regional representatives providing misinformation on biodiesel.

Biodiesel: Not a household word – Although some fleets had heard about regionalthrough VIBES media coverage, many had never heard of it. This demonstrates the importancof market building projects and the need for further biodiesel education.

Although the OTC was less than successful with the fleet market, the passenger vehicle market was a different story. The OTC waath

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A n

icipant

WISE Energy 2004 Volkswagen Jetta TDI; Jolliffe;

1982 Mercedes 300 TD Turbo Diesel;

I; age 900 uiser;

Vintage Double Decker bus n Gagne;

apital City Paving;

h, Mayor-Highlands

o Diesel; ws

, BCIMC 2005 Volkswagen Jetta TDI Wagon;

toria School Dist. ind Power n Passat;

Tony Van Osch Mercedes 180.

is opened up in the region, we feel confident that this market will be

for an extended period for use by their own vehicles and r the fleets and individuals refueling there.

ome One Tank Challenge user quotes:

less smoke on B20. There is no noticeable ifference in either fuel economy (~1000km/tank) or power.”

Ryan Taylor (June , 2005)

a difference with B20, but you can definitely tell), and my conscience certainly feels better hen I'm driving.”

Mark Reid (June, 2005)

truck started better, did not smoke upon start-up when cold, ran quieter, and tailpipe odours were eliminated (a

umber of the people looking for ways to reduce their personal GHG footprint include:

OTC Part Vehicle

Amy Karchut 1984 VW Rabbit; Anita-Murray Hill, Barbara Cliff Leir Dan Pedrick; Detlef Beck, VanCity Volkswagen Jetta TD Doug Ozeroff, Vill Toyota Landcr Erwin Lapschies 83 Mercedes; Gray Line of Victoria; Nathan Marsde John Townley; Kevin Orchard, C Kip Sprungman 1983 Toyota Landcruiser BJ60 ; K. Roessing 1987 Mercedes 300TD Turbo Diesel; Mark Reid 1983 Mercedes 300D Turb Philip Campbell, CH Ne 1986 Mercedes 300 SDL; Randy Storey 1985 Toyota Landcruiser BJ60; Ryan Taylor Scott Evans; Scott Longyear, Back Country Taxi SUV; Seamus Howley. Greater Vic 1998 GMC Dump Truck; TJ Schur, Aeolis W 1995 Volkswage

When a formal biodiesel pumpquite receptive to biodiesel.

Officially the One Tank Challenge ended on June 10th, 2005, however, the City of Victoria agreed to keep the card-lock pump open at their yardfo

S

“My engine runs smoother and quieter with improved odour and d

“So far my experience with biodiesel has been entirely positive. The car is running great, it has a much nicer smell (didn't think I'd noticew

“I did not experience any negative aspects of running on B20, in fact my impression was quite the opposite. My

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favourite of my co-workers in the underground parking lot). To summarize, I am hooked on biodiesel and look forward to it being sold in the Victoria area!”

Randy Storey (June, 2005)

“The Cruiser is idling much smoother/quieter now (the neighbours appreciate it as their bedroom window is near our driveway!).

It doesn't start up with a big black puff of smoke anymore; nice and clean exhaust. It seems to get up to operating temperature faster.

The mileage seems to have improved as well. Can't quite pin the odour down; certainly not the awful diesel smell it used to get... seems now to be a bit like, well, oil on hot metal.”

Doug Ozeroff (June, 2009)

“I am exceptionally pleased with bio. I have little to compare because I ran on regular diesel for only a month or so after purchasing the vehicle, but the exhaust system was very clogged from years of soot build-up.

Post cleaning, I have been running exclusively on bio. The mileage seems better (with the caution that before bio the system was very dirty), and clearly the exhaust is less black and dirty.

Absolutely no complaints, and I would be very pleased to promote and recommend bio to anyone.”

Karel Roessingh, Mayor - Highlands (June, 2005)

“My biodiesel experience has been very positive. I have also enjoyed knowing that I am creating less emissions while improving the lubrication for my diesel engine.

Today I went to fuel up at the City of Victoria. On my way there I passed another motorist who rolled down his window to ask where he could get biodiesel.

I think biodiesel is ready to take off and I am personally hoping B100 will soon be available as well.”

Kip Sprungman (June, 2005)

“We're very happy with the way the B20 has performed in our car. We have used only B20 since the test began (no cheating) and have not noticed any problems.

We have enjoyed the almost pleasant smell coming from the tailpipe. We've also been amazed by the reduction in smoke, about a 70 percent, that's amazing!”

Philip Campbell (June 12, 2005)

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Copyright © 2005 City of Victoria, all rights reserved 30

The “One Tank Challenge”

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5.0 VIBES PARTICIPANT RESULTS The table below provides a summary of the feedback provided by the participants for the extent of the VIBES project.

Table 3 VIBES Fleet Results

Organization Name

Vehicle Description

Mileage

( Total Litres/ Total

Kilometers)

Fuel Efficiency

vs Baseline

Maintenance Requirements General Comments/Observations

GM 13411

Baseline Vehicle

24.8L/100Km

(760L/3064Km)

Baseline BC Mail

GM 13413

Test Vehicle

25.95L/100Km

(912.5L/3657Km)

95.6%

There were no maintenance requirements or impacts beyond standard practice reported.

We have had no problems with the biodiesel at all and the improved odour has been a bonus.

My driver reports nothing but good impressions with the whole test program.

Lots of questions have been received from people who see the decals and lots of interest in the test at customer sites.

If we are to use diesel vehicles again I would have no issues and would be happy to use bio-diesel full time on the whole fleet.

Mike Thomas

Supervisor, Delivery Services

BC Transit* Two Double Deckers (9035 and 9036)

Two Darts (9069 and 9070)

Two Newflyer Low floors (9888 and 9889)

Details follow this table.

96.03% Average

Details follow this table

Other than changing the fuel filters at the beginning of the test cycle and once again approximately one month into the test period (as per instructions), there doesn’t appear to be any outstanding maintenance issues that are directly related to the use of biodiesel.

Performance of Buses

All of the buses performed well with no noticeable drop in power.

There weren’t any noticeable differences in the appearance of emissions (as we currently use # 1 diesel); however, there were many positive comments from passengers regarding the exhaust appearing to have a “less toxic” smell when compared with the regular diesel buses.

There was a slight drop in overall fuel economy when compared to the same buses in each respective fleet.

Observations From Outside Parties

For the most part, we received very positive feedback on the biodiesel testing. We had enquires from a few other private bus

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Copyright © 2005 City of Victoria, all rights reserved 32

companies regarding our experiences with the fuel. Most of the concerns that we heard from other organizations were around the pricing and consistent availability of the fuel. We also had a few questions around the manufacturers warranty on new engines.

It is our observation that other organizations that contacted us are interested in this type of fuel mainly due to the cleaner emissions. The greatest barrier to using this type of fuel appears to be the pricing and availability.

Dave Guthrie

Manager , Safety and Training / VIBES Project leader for BC Transit

P.V.N. 21136

Baseline Vehicle

25.7L/100Km

(~3660L/14244Km)

Baseline Canada Post

P.V.N. 21137

Test Vehicle

28.78L/100Km

(3906L/13573Km)

89.29%

No maintenance requirements outside of regular P.M. reported.

The trucks are 2002 Sterlings which traveled within city limits carrying the same loads. The Biodiesel truck had (2) of our most experienced drivers operating it.

P.V.N. 21137 (5 ton) was first filled with Biodiesel on Dec 14th 2004 at 54658 km. We completed the test on June 1st. 2005 at 68195 km. having traveled 13573 k.m.

P.V.N. 21136 used regular Diesel and started on the same date at 73031km. Finishing at 87275 km on June 1st and having traveled 14244 km.

Fuel data was taken from the F.M.R. detailed report which is for a 12 month period.

Drivers of 21137 could not feel any differences of performance or power until after the first preventative maintenance (P.M.) on 05-04-13 were the fuel filters were changed. They then noticed an increase in power.

I would like to use this fuel until the next P.M. cycle and then cut open the fuel filters. The next P.M. due date is 05-08-13. This would provide a more accurate indication on how the fuel is affecting the fuel filters and other engine components.

Brian Zerb

Canada Post

City of Unit 284 25.9L/100Km Baseline There were no maintenance The City used two vehicles for the VIBES test. Each vehicle had a

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Copyright © 2005 City of Victoria, all rights reserved 33

Service Truck

Baseline Vehicle

(646L/2499Km)

Unit 286 Service Truck

Test Vehicle

19.4L/100Km

(615L/3162Km)

136%

Unit 337 Garbage Packer

Baseline Vehicle

76.3L/100Km

(2973L/3896Km)

Baseline

Victoria

Unit 341 Garbage Packer

Test Vehicle

69.1L/100Km

(3444L/4987km)

110%

requirements outside of regular P.M. reported.

No performance issues were noted on either test vehicle.

Our mechanical staff report that no visible or noticeable changes occurred with either biodiesel vehicle’s injector systems.

Fuel filters were changed monthly through to April on the test to measure the reductions in contaminants. Following the last fuel filter change in April, inspections showed that little or no contamination was present.

Subsequently, the filters have not been changed since. We likely could have gone the full six months without any filter changes as the contamination was minimal at worst.

Both biodiesel vehicles start in a normal fashion at the start of each shift. No stalling reported during the test period.

Operators have commented only on the relative reduction in engine noise and exhaust opacity.

Oil samples were taken on a regular basis but did not indicate any problems.

single assigned operator. Prior to commencing the test period, a meeting was held with both of these operators, together with the operators of the baseline vehicles and their supervisors to go over the test requirements, expectations and methodology. I was impressed by the level of enthusiasm demonstrated by all City staff towards this project.

Initially, the City installed two temporary holding tanks for the purpose of refueling the biodiesel vehicles. This proved to be problematic for us as shop staff had to be tasked with the refueling and recording duties whenever a vehicle required fuel.

In March, we switched to the use of one of our underground storage tanks connected to our computerized card lock system. This eliminated having shop staff involved and improved the accuracy of both fuel use and mileage records.

During the test period, both of the biodiesel vehicle operators were queried about how they felt their trucks were operating. I received only positive comments which included a marked reduction in exhaust opacity, some noticeable reductions in engine noise, particularly when decelerating and a more pleasant smell. One operator reported that he was sure his vehicle had “more power” but he could not quantify his feelings.

Having the City act as the supplier of fuel for the smaller fleet participants did not pose any significant problems, other than to add a tracking and billing function to our administrator’s daily portfolio of work. Once the switch was made to the card lock system, this became a bit easier.

Overall, I was impressed with the relative ease with which we were able to switch to a B20 blend of biodiesel.

The City of Victoria is firm in its belief that biodiesel can and will form a part of our GHG reduction strategies for the future. However, this will depend largely on local supply and a competitive cost.

Wayne Carlow

Manager, Operations Division

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Copyright © 2005 City of Victoria, all rights reserved 34

Columbia Fuels

Unit #80-33 diesel / biodiesel delivery truck

N/A N/A There was no noticeable change in mileage or service required. All services were done as per our schedule and we did not notice any unusual oil use or filter requirements.

The mileage and fuel used remained consistent for that truck unit with no noticeable changes in consumption.

Cheryl Vandermeer

Transportation

14-384 Service Truck Test Vehicle

46.39L/100Km

(1791L/3861Km)

76.5%

14-386 Service Truck Baseline Vehicle

35.47L/100Km

(957L/2698Km)

Baseline

18-568 Garbage Packer Test Vehicle

92.6L/100Km

(5620L/6069Km)

127%

District of Saanich

18-569 Garbage Packer Baseline Vehicle

118.19L/100Km

(5887L/4981Km)

Baseline

The test units produced no negative impacts through the end of the test.

Maintenance was business as unusual.

From an operator's perspective all comments were neutral, no difference was noticed. The only exception was the crew on the refuse packer using bio said they noticed a less offensive emissions odor.

David McAra

Superintendent, Fleet Operations and Solid Waste Services

As a participant of the Vancouver Island Biodiesel Evaluation Study (VIBES), The Corporation of Saanich are pleased to say that the use of biodiesel in our test vehicles has been positive. From an operational point of view we see no reason not to continue using biodiesel in these vehicles, and to expanding the usage to other vehicles.

Upon completion of this study Saanich hopes that there will be enough interest in the community to support the establishment of a local market for the product at a competitive price. If a steady supply of quality product is available at an economic price then this will allow Saanich the opportunity to once again support our corporate initiative to contribute to a cleaner environment.

Marie Van Dyk

Director of Purchasing Services

Sooke School District 62

A large school children transport Bluebird bus (2004).

Although this participant did experience some early filter clogging problems once the filters were checked and changed on a regular basis there was not a reoccurrence of earlier problems.

The operator did feel the oil filters had to be changed more often however.

At this date I would like to advise that all indications from the Vancouver Island Biodiesel Evaluation Study shows that biodiesel, in a B20 blend, presents no significant operating issues for the School District’s school bus.

The operator did not notice any differences in performance or power. The odour was better.

We believe that biodiesel fuel is certainly an environmental positive move and if the price is right and all things being equal we would certainly endorse the use of this fuel for our school district.

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Copyright © 2005 City of Victoria, all rights reserved 35

Should a steady, cost compatible supply of blended biodiesel be available to the local Victoria market I have no hesitation in stating that Sooke School District #62 will continue to use this fuel.

Biodiesel represents another tool for us to use in our efforts to reduce our inventory of greenhouse gases from tailpipe emissions.

Nancy Hueston, Purchasing Coordinator

Sooke School District #62

Vancouver Island Powerline

GMC Top Kick C8500 Diesel with an Altec AN650 Aerial Device (2000).

7.2L Cat 3126B diesel, 230 gross hp.

Ford F700 with an Altec AN650 Aerial Device (1991).

Ford/6.6 liter straight six-turbo diesel.

NA. The vehicles are mainly stationary and idling at a work site therefore mileage is not tracked.

There were no operational differences with using biodiesel.

There were the rare occasions when the operators would fuel one week with B20 and the following with diesel. This presented no operational problems.

There were no unusual requirements that fell outside of our regular maintenance schedule.

We did not find a noticeable difference in the overall performance of the trucks.

All operators indicated that there was a noticeable difference in visible emissions, especially since our trucks idle on site all day.

We are constantly looking for ways to reduce impacts on the environment therefore our principal motivation for participating in VIBES was not to save money or improve engine efficiency, but to burn a biodegradable renewable fuel to aid in reducing emissions.

Vancouver Island Powerline is interested in helping to establish a basis for future use and accessibility of biodiesel after the completion of the VIBES Project.

Michelle Spiers

Systems Administrator

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BC Transit Fuel Economy Summary Detailed results are provided in Appendix B.

Figure 4 BC Transit VIBES Fuel Economy Summary Chart

0.300

0.350

0.400

0.450

0.500

0.550

0.600

0.650

0.700

0.750

0.800

Dec. 2004* Jan. 2005 Feb. 2005 Mar. 2005 Apr. 2005 May - Jun. 10,2005

6 MonthAveragePeriod

Litr

es p

er K

ilom

eter

9035 Double Decker

9036 Double Decker

Average Double Decker Fleet

9069 Dart

9070 Dart

Average Dart Fleet

9888 New flyer

9889 New flyer

Average New flyer Fleet

Average VIBES Fleet

Average Baseline Fleets

* December figures include period of month prior to start up date of Dec. 14 where test vehicles operated on petro-diesel

5.1 VIBES Participant Results: Conclusions and Recommendations The use of biodiesel by VIBES participants presented no significant technical or performance barriers.

Filters Two of the fleets experienced filter clogging problems. Canada Post chose not to change fuel filters during the initial cleansing period of biodiesel use. It was only during their scheduled preventative maintenance (PM) check that they found the test vehicle’s filter quite clogged. Drivers noticed an improvement in performance after the filter change. Canada Post’s mileage figures prior to the PM may be skewed due to this.

School District 62 experienced what they felt to be filter clogging problems on the test bus approximately ~6 weeks into the test. The filters were changed more frequently and the problem did not occur again. Of all the vehicles participating in the test, this was the most unlikely one to have filter clogging problems as it was less than one year old and did not have much time for sludge and deposits to accumulate in the fuel system. The filter was disposed of before the project team had a chance to acquire it for testing (filters must be cut open to determine the level of clogging, if any).

Although biodiesel’s cleansing effect is vastly diluted in B20 blends or less, the project team recommends that fleets either perform extra filter changes during the first 3 months of biodiesel use, or at the very least, monitor vehicles to determine if filter clogging is having an impact on performance.

Mileage/Fuel Efficiency VIBES B20 fuel efficiency expectations were based on documented testing. Although B100 has ~10% less BTU’s per litre than petro-diesel, it is denser and so recovers some of this loss. Biodiesel’s higher cetane # and lubricity should also result in an increase in fuel efficiency. Therefore using a B20 blend has demonstrated a negligible decrease and occasional increase in fuel efficiency.

The level of mileage tracking and the results captured by the VIBES participants was quite varied.

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BC Transit purchases buses in blocks, and so this allowed each of the test vehicles to be measured against several buses of exactly the same make model and year (representative fleet). The highly detailed results captured by BC Transit (see Appendix C) show many changes from month to month from vehicle to vehicle. Several factors such as load, season, route and drivers affect these results. For example, the Dart 9069 test bus varied from a low of 38 l/100k to a high of 53.2 l/100k.

The other fleets that tracked their fuel efficiency in comparison to a baseline vehicle show wide variation beyond what should be expected from the use of B20. Results show a low of 76.5% to a high of 136% fuel efficiency compared to their respective baseline vehicles. These variances can only be attributed to the physical differences between the test and baseline vehicles as well as differences in their loads, routes, and drivers.

In order to get an accurate baseline measure to compare the test fuel economy to, the project team recommends that fleets track fuel economy for each test vehicle for at least a few months prior to the use of biodiesel. Running parallel baseline vehicles during the test is valuable for comparisons with maintenance impacts of biodiesel use.

Exhaust Opacity and Odour All fleets reported a noticeable improvement in exhaust opacity and odour. The fleets that idle for long periods (garbage trucks, power line trucks etc.) with workers working in close proximity to the vehicle were extremely pleased with the improved exhaust. These vehicles could become good candidates for the use of B100 in the future in order to reduce the risk to their workers, as diesel exhaust is a known carcinogen and has proven to be a major cause of respiratory illnesses.

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Vancouver Island Powerline 2000 GMC Topkick

“We did not find a noticeable difference in the overall performance of the trucks.

All operators indicated that there was a noticeable difference in visible emissions, especially since our trucks idle on site all day.

We are constantly looking for ways to reduce impacts on the environment therefore our principal motivation for participating in VIBES was not to save money or improve engine efficiency, but to burn a biodegradable renewable fuel to aid in reducing emissions.

Vancouver Island Powerline is interested in helping to establish a basis for future use and accessibility of biodiesel after the completion of the VIBES Project.”

Michelle Spiers Systems Administrator

Vancouver Island Powerline

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6.0 EMISSIONS REDUCTIONS 6.1 ERC Background

Emission reduction credits (ERC) have emerged as a mechanism to help reduce GHG emissions. The Federal Government hopes that demand for these credits will prove to be an important mechanism through which the market finances cleaner fuels.

What is an Emission Reduction Credit? An ERC is a credible and verifiable greenhouse gas credit that a company can earn when it reduces GHGs beyond what is required by permits and rules. ERCs are assets that can be used by companies to meet their emission reduction targets or sold to companies that need emission offsets.

What is an Emission Offset? An emission offset occurs when a company compensates for an increase in emissions in one area by decreasing emissions in another area. For example, if a company is expanding, or building new facilities and the expansion will involve an increase in emissions, companies can use surplus ERCs from else where to offset the emissions increase.

6.2 VIBES Emission Reduction Calculations During the 6 month trial, VIBES fleet participants consumed ~159,250 litres of B20 biodiesel or ~31,850 litres of B100.

Table 4 below is based on NRCan’s GHGenius modeling for yellow grease based biodiesel, which was used by VIBES participants.

Table 4 VIBES Downstream Lifecycle GHG and CAC Reductions*

VIBES Biodiesel consumption (B100) 31,850 litres Downstream lifecycle GHGs reduced / litre of biodiesel 2.64 kgs GHGs that can be claimed by VIBES participants - 84,084 kgs Carbon Monoxide - 80 kgs Particulate Matter - 1.34 kgs Sulphur - 16.1 kgs Volatile Organic Compounds – ozone weighted - 9.21 kgs Nitrogen Oxides 0 kgs

* Calculations based on report entitled “Biodiesel GHG Emissions using GHGenius – An Update” prepared for NRCan by (S&T)2 Consultants Inc, January 31, 2005.

The figures in the table above are based on an assumption of an average fleet vehicle fuel economy of 41 litres/100 kms.

Note the values from the interim report have changed. New values are based on the January 31, 2005 version of the GHGenius from NRCan.

6.3 Emission Reduction Credit Contractual Framework Credits associated with end use will need to be created within a contractual framework that should include the following consideration:

1. Contracts should state that end users will have rights to sell the biodiesel consumption-related ERCs from their agreements with the fuel suppliers.

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2. Agreements should state that the fuel supplier shall provide credible and verifiable estimates of the pollutant and greenhouse gas (GHG) emissions arising from the production, handling and storage of the B100 supplied to the end-user, as well as the emissions associated with transporting the B100. This will require the supplier to maintain records of the electricity and fuel consumed in the B100 production, storage and transport processes, as well as of all fuel losses, the points at which losses occur and reasons for the losses in B100 production, handling and transport.

3. Include how long the records related to energy consumption and other operating records from which emission estimates are derived need to be kept.

4. Include a signed "Quit Claim Agreement". This agreement shall state that the supplier agrees to abandon any current or future claim to title to GHG emission reductions and emission reduction benefits that might be associated with the end-use of the B100 supplied by the Fuel supplier to the end-user. Note, any “Quit Claim Agreement(s)” shall become null and void in the place of a separate compensation agreement(s) made between fuel supplier and the end-user(s).

5. The agreement should cover how the fuel supplier will comply with all applicable environmental regulations and operating codes over the reporting period with respect to the production, storage, handling and transport of the fuel orders.

6. The agreement should state that the fuel supplier agrees to document the weight, mode and distance that the B100 was transported from the prior stationary point in the supply chain to the end user and provide this information on an agreed basis.

7. To facilitate the end-user the agreement needs to validate the B100 supply chain emission claims. The agreement should have a clause that grants end user access to documentary evidence to support the following information: all taxes collected (including all goods and services taxes, all provincial sales taxes, all federal excise taxes, etc.), duties, freight costs and other charges or expenses related thereto and to fully indemnify the fuel supplier in respect of the sale of Biodiesel , to a third party auditor, at the end-users' request and cost. The agreement should also state that the end-user shall not be liable for these upstream emissions.

Note, at this point in time, it is difficult to clearly define all components needed for a contractual framework for Emission reduction credits as Canada's GHG credit creation rules have not been created and baselines for vehicles have not yet been established.

6.4 The Current Potential for Emission Reduction Credit Sales The emission reduction credits trading market in Canada is at a very early stage. In the recent 2005 budget, the federal government announced the creation of a new fund – the Climate Fund. The intention of this fund is to purchase the ERCs. The government hopes that the market incentives offered to companies for their surplus credits, will help to significantly reduce the overall cost of meeting climate change goals.

Other potential buyers of credits identified were the Large Final Emitters (LFEs). LFEs would be able to purchase emission off-set credits to help them meet their targets. The budget established a target of 45 mega tonnes in annual emission reductions over the period from 2008 to 2012. The federal budget did not define what value will be associated with the cost to the credits. It is expected that the market will be based on demand.

It is anticipated that demand for biodiesel credits will be determined on how effective the government is in establishing an efficient and robust trading market. Some key elements that will be needed include the following:

1. Clearly defined credit creation rules - Environment Canada and Climate Change Central are currently working towards defining the protocols but it will take time to implement these rules.

2. Baseline for tailpipe emissions from conventional diesels.

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3. Guidelines on contracting, validation and verification of credits. – Note, the administrative costs associated with contracting, validation and ongoing verification of credits could be substantial as trading mechanisms may require that each trade be individually reviewed and approved.

4. Clear policy direction on future requirements for emission reductions. Market value of the credits could depend on what emission reductions requirements will be after at 2012. If it is unclear what happens after 2012, expectations are that interest in purchasing credits will diminish.

In summary, until it is clear exactly how the market will operate, many of the LFEs including the federal government will hesitate to do a GHG credit purchase – with biodiesel.

In the meantime, it is recommended that participants interested in ERCs should develop contracts with their fuel suppliers and maintain records using the points listed above. This will allow them to maximize benefits once the rules become established.

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Copyright © 2005 City of Victoria, all rights reserved 42

School District 62, Sooke, 2004 Bluebird

“At this date I would like to advise that all indications from the Vancouver Island Biodiesel Evaluation Study shows that biodiesel, in a B20 blend, presents no significant operating issues for the School District’s school bus.

We believe that biodiesel fuel is certainly an environmental positive move and if the price is right and all things being equal we would certainly endorse the use of this fuel for our school district.

Should a steady, cost compatible supply of blended biodiesel be available to the local Victoria market I have no hesitation in stating that Sooke School District #62 will continue to use this fuel.

Biodiesel represents another tool for us to use in our efforts to reduce our inventory of greenhouse gases from tailpipe emissions.”

Nancy Hueston, Purchasing Coordinator Sooke School District #62

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7.0 VIBES SUBPROJECTS 7.1 ULSD

The project team researched the potential for conducting an Ultra-low Sulphur Diesel (ULSD)-Biodiesel field test. It was important that a test of this nature be conducted in Canada since no field testing has occurred to date and ULSD is mandated for Canadian on-road diesel vehicles by as early as mid-2006. For this reason a number of VIBES participants were interested in participating in this sub-project.

Our research determined that ULSD was readily available in the U.S. at this time but there was little to no production in Canada. Although a number of petroleum majors have plans to start producing ULSD in early 2006, at the time of this report, any field testing would require special production runs.

In part, this led to a decision to conduct the ULSD-Biodiesel test in central-Canada.

7.2 Develop Project Plan for a B.C.-marine Biodiesel Evaluation Study Transportation sectors are responsible for upwards of 25% of Canada’s green house gas (GHG) emissions. Marine transportation is of special concern since a recent study ‘Forecast and Backcast of the 2000 Emission Inventory for the Lower Fraser Valley Airshed 1985 – 2025’ conducted by the Greater Vancouver and the Fraser Valley Regional Districts indicated this sector will soon surpass land transportation for total emissions generated within the Fraser Basin.

For this reason it was felt important to build awareness among marine fleet operators for the need for cleaner energy solutions. As proven in other regions in the world, biodiesel provides a ready solution to meet these goals, however the challenge is to find ways to communicate these many benefits.

Since VIBES was successfully introducing many fleets and individuals to biodiesel, and since many fleets run their vessels on diesel fuel, a marine fleet biodiesel field/marine test was considered a good means to communicate the need for change, and to provide a ready solution to marine fleet owners.

For this reason a draft project proposal was prepared with the assistance of Environment Canada. The goal of this document was to grow the interest of sponsors and participants in a biodiesel marine test. It was decided that until the participating fleets were identified, and helped to define the final project objectives, the intermediate goals of the project would be the following:

Demonstrate how immediate emission reductions can be achieved in the marine environment with the use of biodiesel blends.

Provide recommendations toward an optimum biodiesel blend for use in the pacific coastal marine environment given the caveats of emission reductions, engine performance, handling and storage, and distribution infrastructure and cost.

Test biodiesel blends with both low sulphur and ultra low sulphur diesel. Measure the engine performance of the vessels using the specified blend. Highlight the safety benefits of using biodiesel blends in the marine environment. Measure biodiesel biodegradability and toxicity in the Vancouver Harbour. This will help to

understand the marine environmental impact in case of spills along the coast line and in the inner harbours.

Define a strategy for incorporating biodiesel use in the marine environment; and Develop a video that highlights the strategy for integrating biodiesel into the marine sector.

Contacts, meetings and presentations were held with a number of organizations and although there was a level of interest on the participant side, at the time of this report there has been difficulty in identifying the necessary resources to allow a project of this nature to go ahead.

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Copyright © 2005 City of Victoria, all rights reserved 44

B.C. Mail Plus 1991 Ford Mail Delivery Cube Van

“We have had no problems with the biodiesel at all and the improved odour has been a bonus.

If we are to use diesel vehicles again I would have no issues and would be happy to use bio-diesel full time on the whole fleet.”

Mike Thomas (April, 2005) Supervisor, Delivery Services BC Mail Plus

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8.0 CONCLUSIONS From an overall perspective, the VIBES project was a considerable success. It greatly raised awareness for biodiesel across a number of communities, industry sectors and government agencies.

The feedback and information gathered by the participants is positive and points towards the future adoption of biodiesel by the participating fleets. VIBES participants recommend other regional fleets consider biodiesel. From their perspective, it presents no significant barriers to widespread adoption.

The success of this Field Test project depended on strategic partnerships and alliances with stakeholder groups. The potential categories of stakeholders in this project were those with a triple bottom line, or mandate to reduce greenhouse gas emissions, through to those wishing to improve engine performance and reduce wear and tear on their engines.

VIBES participants stated a desire to continue running on biodiesel following the field test. To help ensure biodiesel will continue to be available to them, the fleets worked together to build the local market. They did this by donating time and effort to providing on-going information to other fleets and individuals through a project web-site, information handouts and ongoing communications efforts. Also, other fleets were contacted directly, throughout the field test, to determine whether they would be interested in trying biodiesel in parallel to the test.

Over 290 million litres of petro-diesel fuel is consumed on Vancouver Island annually. Currently, no accredited biodiesel manufacturing plants exist on the island or in Western Canada. Those wishing to use biodiesel must import it, primarily from the United States, at significant cost.

VIBES has helped determine there is a ready and viable market for biodiesel produced locally. A local plant would have a positive impact on our local environment by recycling waste oils into a viable local manufacturing stream, thereby providing an economical clean fuel that reduces GHG emissions.

8.1 Biodiesel Growth in the Region The following are some of the biodiesel growth developments that have occurred as a result of VIBES.

The One Tank Challenge. A number of fleets and individuals have signed up to this program and have started using biodiesel on a regular basis.

The City of Victoria committed to adopting biodiesel for the long term if the supply can be guaranteed and the price remains competitive. The Corporation of the District of Saanich would also be interested under similar circumstances. A local plant will make this possible. Other municipalities have indicated long term interest but are looking to the City Victoria for the lead.

One of our partners, Columbia Fuels, is working toward making biodiesel available through their commercial card-lock system.

A number of VIBES partners have met with WISE Energy to discuss the potential for long-term biodiesel integration. Similar to the City of Victoria, and other interested fleets, it will be critical to ensure the long-term supply is stable and the cost is competitive.

The 2010 Olympic Committee has been in contact due to their interest in having biodiesel and biodiesel knowledge available to the 2010 Olympics. There is the potential that biodiesel will not only be used in their transportation vehicles but also for on-site equipment, heating and back-up power generation purposes.

A $300M development project in Victoria, Dockside Green, intends to have an on-site biodiesel production plant for use during its development, in its transport vehicles and for the community. (For more information on the Dockside project please go to http://www.docksidegreen.com/ ).

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A number of marine fleets have been in discussion with us and are currently assessing the use of biodiesel. As mentioned earlier in this report if a marine fleet test for biodiesel could be brought forward for B.C. there could be considerable interest.

A tourism bus fleet on the island is now using biodiesel on a regular basis and hopes to continue its use as biodiesel becomes more readily available. Other island tourism bus fleets have indicated interest in exploring biodiesel further.

A taxi company has contacted us with a desire to use biodiesel in their fleet.

There are now a considerable number of diesel vehicles operating in Victoria with bumper stickers stating ‘Powered by Biodiesel’ as a result of the ‘One Tank Challenge’.

Meetings have been held with specific large fleets to promote biodiesel adoption in their own long-term strategies.

There have been many requests for the VIBES Project Report from many parts of Canada, the U.S. and Europe.

8.2 Storage and Handling Recommendations During the course of the VIBES project a great deal was learned about the care and handling of biodiesel to ensure continued fuel quality standards are maintained throughout transportation, storage and use. While biodiesel is much more straightforward to manage operationally than petro-diesel, due to its non-hazardous designation, there are a number of best practice handling guidelines.

In summary the key operational guidelines are:

When purchasing B100, always purchase biodiesel from a reputable supplier. Request a certificate of Analysis for each biodiesel order to ensure the fuel meets ASTM D6751.

If at all possible fleets should try to purchase pre-blended biodiesel which allows the distributor to handle all of the storage and blending issues.

When storing biodiesel, always use moisture control devices on the storage tank air vents to ensure the biodiesel stays on spec.

Even when using low level blends, monitor vehicles for filter clogging issues, or schedule an extra preventative filter change after the first two months.

8.3 Overall Recommendations The following are a few suggestions that will assist biofuels to become better established in B.C. and Canada:

VIBES has been exceptional for raising alternative fuel awareness. It would be beneficial for field tests of this nature to continue across the country to assist the momentum toward full adoption. The greater the number of fleets using biofuels, the better chance these fuels have of becoming fully price competitive.

It is important for federal and provincial governments to step up to using alternative fuels in their own fleets. In addition to indicating leadership and confidence in this proven alternative, this will provide the fledgling industry with a stable base market.

The Federal government has begun the process of defining Canadian renewable fuel standards for biofuels and biofuel blends. These standards are critical for building confidence and getting commitments from the vehicle manufacturers, financiers and consumers. As of August 2005 the U.S. set a Renewable Fuel Standard to require minimum blends of Biofuels across the country. A number of Canadian provincial governments have also started setting minimum blend mandates for ethanol. This level of support at the Canadian Federal level

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would help assure long-term stability, planning and investment security for ethanol and biodiesel.

A fully defined Canadian Emission Reduction Credit foundation would assist the Canadian alternative fuel market to expand much more rapidly. This will require a standardization of both participant rules and clearly defined emission baselines for all vehicles. ERCs provide another, and growing, economic incentive for fleets, and potentially individuals, to participate. The security of a long-term, standard supply of ERCs will lead to greater market confidence, and therefore, an increased value for the GHG credits generated in Canada.

As noted in this report, one of the biggest hurdles for biofuels continues to be the cost of importing and transporting the fuel. It is commendable that the Federal, and a number of Provincial governments, have provided tax incentives, and begun to invest in local biofuel projects, communications efforts and plant costs. These are all critical for any new industry to make an impact, no matter its many downstream benefits.

This is a recommendation that a growing percentage of government petroleum investment be spent on renewable fuels over time. (It has been argued that the market is not self-sufficient if it needs long term support by government, however, of the total $41B+ in incentives/loans/investments that Canadian governments have made on all forms of fuel energy over the last 34 years less than 0.25% of that has been spent on renewable fuel).

8.4 Financing and Implementation Plan for the Preferred Option(s) Our preferred options, coming from the VIBES project were;

Develop an acceptance of biodiesel as an alternative fuel and create a user base that would support local production

Encourage the creation a local production facility.

The first goal was accomplished very successfully as indicated by the final report. Several of he participants as well as a large number of those who took the One Tank Challenge have pledged to continue to use biodiesel as long as it can be supplied in this area.

The second goal, while not to be realized immediately, is still achievable given the interest in biodiesel generated as a result of the VIBES project. Further, City council is very supportive of a small scale biodiesel production facility being incorporated into the new Dockside Development, a LEED project being built in Victoria.

The City of Victoria and the District of Saanich are B.C. Petroleum Products Buyer’s Group members and have just signed a 3-5 year contract that includes biodiesel product and services. This commitment comes as a result of our experiences gained through VIBES and will help private industry to pursue local production.

###

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Canada Post 2002 Sterling 5 Tonne

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APPENDICES

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Columbia Fuels 1996 International Biodiesel Distribution Truck

“There was no noticeable change in mileage or service required. All services were done as per our schedule and we did not notice any unusual oil use or filter requirements.”

Cheryl Vandermeer Transportation

Columbia Fuels Inc.

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APPENDIX A: ABOUT VIBES PARTICIPANTS & SUPPORTERS VIBES Participants

BC Mail Plus

Contact : Maggie Vause Manager, Victoria Plant Operations [email protected] (250) 952-5131

Project manager: Mike Thomas, Supervisor, Delivery Services

www.bcsolutions.gov.bc.ca/bcmail

Postal and Distribution Services (BC Mail Plus) is one of several branches operating within Procurement and Supply Services, Common Business Services, Ministry of Management Services.

BC Mail Plus operates as a fully cost recoverable program, for the efficient management of government mail. Expenditures are recovered from customers through a chargeback process. Customers include government ministries, boards, agencies, commissions, Crown Corporations, and public funded organizations.

Services provided by BC Mail Plus include mail processing and distribution; mail preparation; mailing list management; high volume variable laser and impact printing services; an employee household relocation service, scanning services and Digital Photo Identification (DPID) card production facility.

The following operating units are located at the main plant in Victoria.

Mail Processing and Distribution

Mail Preparation Services and Production Planning

Mailing List Services and Address Data Analysis Services

Scanning Services

Variable Printing Services

BC Employee Relocation Services

Regional offices, strategically located throughout the province, provide a wide range of local mail processing and distribution services. These offices are located throughout four regional areas.

Information about BC Mail Plus’ products and services may be obtained by calling (250) 952-5102, or faxing (250) 952-5117.

BC Transit

Contact: David Guthrie BC Transit Bio-Diesel Test Project Manager [email protected] (250) 995-5630

www.bctransit.com

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BC Transit is the provincial Crown Corporation charged with providing public transportation throughout the province, outside the Greater Vancouver region. In addition to managing and operating the Victoria Regional Transit System, BC Transit plans, funds, manages, markets, and contracts for transit systems throughout 50 British Columbia municipalities. In total, BC Transit provides over 31.9 million trips annually with a fleet of 494 conventional buses, and 191 vans and minibuses.

BC Transit's objective is to identify and participate in the development and adoption of emerging transit technologies. During this field test, BC Transit will use an enhanced monitoring capability to identify impacts on fuel consumption and vehicle maintenance costs of the biodiesel fuel alternative on six transit vehicles.

For additional details on the vehicles, visit: www.bctransit.com/corporate/resources/pdf/res-fleet-35.pdf

Canada Post

Contact: Peter Wypkema Director, Communications Western Canada [email protected] (604) 662-1592

www.canadapost.ca/splash.asp

Canada Post is striving to be a leader in adopting new technologies to reduce Greenhouse Gas Emissions and non renewable energy consumption. The corporation is working on initiatives to ensure that it meets or exceeds its Kyoto Protocol requirements while also achieving cost savings. For instance, the Vancouver Mail Processing plant through the use of new lighting technology has reduced its annual energy consumption by 8 per cent.

With one of the largest commercial vehicle fleets in the country, Canada Post has also been exploring options such as hybrid or electric-powered vehicles that use less energy. Canada Post is very pleased to participate in the Vancouver Island Biodiesel Evaluation Study.

City of Victoria

Contact: Wayne Carlow Manager, Operations Division [email protected] (250) 361-0419

www.city.victoria.bc.ca/common/index.shtml

The City of Victoria considers itself a leader in the development, implementation and promotion of environmentally sound best management practices, both for our own operations and within our community at large. In 1996, the City converted 30% of its light duty fleet of vehicles to operate on compressed natural gas (CNG). Since then, CNG is our standard fuel choice when specifying light duty vehicle replacements. The philosophy of environmental stewardship is built into all of our business practices and processes.

Our decision to participate and play a lead role in the VIBES project was a natural extension of that philosophy. As a result of VIBES we believe that biodiesel along with other initiatives such as adding “Smart Cars” to our fleet, will help us achieve our diesel emissions reduction goals.

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Columbia Fuels

Contact: Bruce Nagel Corporate Leader [email protected] (250) 391-3631

www.columbiafuels.com

Columbia Fuels is the largest supplier of heating oil products and heating equipment on Vancouver Island. Our heating oil products are all low sulphur as we do care about the environment. We also offer premium furnace oil, which burns hotter, and thus more completely to ensure minimum pollutants are released into the atmosphere.

We are also involved in the sale and delivery of commercial fuels thru our network of card-locks, bulk plants as well as with our fleet of delivery trucks.

We actively look for ways to protect the environment, as it is one of our concerns. Biodiesel, in our minds, is a viable product for use on Vancouver Island. B20 can be used year around here.

Corporation of the District of Saanich

Contact: David McAra Superintendent, Fleet Operations and Solid Waste Services [email protected] (250) 475-5599 (3321)

www.gov.saanich.bc.ca

Saanich Vision:

In 2025, Saanich is a safe, affordable, accessible community in which to live and work. This level of sustainability reflects the values and goals of Saanich residents over the years implemented by successive Councils within the context of the Regional Growth Strategy and fiscal responsibility.

Progress towards this vision and specific goals contained in the Official Community Plan have been monitored through the use of a system of benchmarks and the breadth of consultation in achieving this level of excellence is ongoing. In addition to community groups, representatives from business, the professions, and visionaries are involved. The ethic of community stewardship is paramount incorporating careful management of public assets and private developments

Over the past quarter-century, residential and commercial growth has centered round urban village centers of diverse character and distinct identity, each one reflecting the people who live and work there. Neighbourhoods are healthy and affordable for children and families. The urban area is intra connected by a balanced transportation system which allows a choice of mode for all residents. Saanich is the heart of an urban region that defines itself as the walking and cycling capital of Canada with efficient public transit and bicycle-friendly streets with traffic calming and safe pedestrian facilities.

Social values and the economy are enhanced by the preservation of heritage and promotion of arts and cultural elements. Community wellness has been achieved by providing infrastructure for active living which offers a wide range of open space and leisure opportunities. Efficient and reliable public services, programs, and utilities are provided and maintained through a systematic approach to infrastructure management. The rural area has been preserved by adherence to the Urban Containment Boundary concept.

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The successful promotion of vibrant, diverse economic development has allowed the municipality to support initiatives to ensure a clean environment. Natural watercourses are protected and enhanced; the Colquitz River, Tod Creek, and other streams support both trout and salmon. Preserving the natural heritage of the marine shoreline and native plant communities, especially Garry Oak meadows, on both public and private lands has been recognized as an essential component of sustainability.

School District 62

Contact: Nancy Hueston

Purchasing Officer

[email protected]

(250) 474-9886

School District 62 provides school bus transportation services for District children.

“We are excited to be participating in this project as it is very important to us to ensure our children receive transportation that is as safe as we can make it.”

Vancouver Island Powerline

Brent Tymchuk President and General Manager [email protected] (250) 475-3599/Cell: (250) 380-8066

Michelle Spiers Systems Administrator [email protected] (250) 475-1784

www.vancouverislandpowerline.com

Vancouver Island Powerline is one of the most innovative companies in the high voltage industry. As a full service utility contracting firm based in Victoria, British Columbia, we strive to offer our customers dependable and superior workmanship. Our principle activities are construction, distribution maintenance, and providing service and support for BC Hydro power systems and the Department of National Defence.

Vancouver Island Powerline is committed to environmental excellence in the performance of our business. As part of our commitment, Vancouver Island Powerline is participating in Vancouver Island Biodiesel Evaluation Study (VIBES).

Biodiesel is a biodegradable and renewable fuel that can be used in unmodified diesel engines. Biodiesel is often blended with a concentration of petroleum base diesel. We will be using what is known as B20 blend; produced from 20 percent biodiesel and 80 percent petro-diesel in the evaluation study.

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The study will involve two test vehicles of similar model and age with similar loads, mileage, routes, and maintenance schedules.

Our principal motivation for participating in the VIBES is not to save money or improve engine efficiency, but to burn a biodegradable renewable fuel to aid in reducing emissions.

VIBES Supporters

Ministry of Water, Land & Air Protection

Tiffany Akins Media contact [email protected] (250) 953-4577

http://www.gov.bc.ca/bvprd/bc/channel.do?action=ministry&channelID=-8395&navId=NAV_ID_province

The Government of British Columbia is proud to be a participant in VIBES. This innovative partnership to reduce greenhouse gases and, subsequently, improve air quality, will benefit all British Columbians.

Our commitment to air quality improvement includes support of projects like VIBES, tax incentives for purchase of vehicles that use cleaner and alternative fuels, and production of energy from green sources.

As part of its efforts to lead by example, the Government of British Columbia is also committed to the replacement of government vehicles with those that are more environmentally friendly.

Environment Canada

Environment Canada has a responsibility for clean vehicles and fuels regulations in Canada, detailed in the 10 year Plan of Action for cleaner vehicles, engines and fuels - an integral part of the federal government's Clean Air Strategy.

Contributions from Environment Canada are supported in British Columbia through the Georgia Basin-Puget Sound International Airshed Strategy, a part of the Canada-US Border Air Quality Strategy.

Federation of Canadian Municipalities

The Federation of Canadian Municipalities (FCM) has been the national voice of municipal government since 1901. FCM is dedicated to improving the quality of life in all communities by promoting strong, effective and accountable municipal government.

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GEMCo.

Contact: Aldyen Donnelly President, Greenhouse Emissions Management Consortium ("GEMCo") [email protected] 604-737-2040 cell: 604-512-4635

www.gemco.org

In June, 1996, Aldyen was appointed first President of the Greenhouse Emissions Management Consortium (“GEMCo”). From 1994 to 1996, Aldyen served as the Senior Economist in Westcoast Energy Inc.’s Sustainable Development Office. Reporting to the Chair of the Westcoast’s Sustainable Development Council, Ms. Donnelly participated in the development and implementation of environmental and sustainable development policy, including; (1) the integration of environmental management and emerging energy business strategies; (2) environmental issues management; (3) sustainable development education and training.

From 1989 to 1994, Ms. Donnelly led an independent consulting practice that specialized in economic and financial analysis, environmental technology evaluation and marketing, public policy and program evaluation, and business financing. Prior to 1989, Aldyen worked in the field of general management consulting as well as in line management positions.

VanCity

Detlef Beck Victoria Community Investment Manager [email protected] (250) 519-4240/Cell: (250) 661-0949

www.vancity.com

VanCity’s vision is to be a strong financial co-operative and a catalyst for a socially just and environmentally sustainable economy. To get there, we make business decisions that consider the well-being of members, employees, communities and the environment – so all prosper together. We also dedicate significant resources --- financial and non-financial – to support those working for positive change in our communities. We know that together we can make a difference.

In partnership with others in the community, we believe we can use our skills and expertise as a financial institution to create positive change. So, while continuing to respond to the diverse needs of our communities, we proactively focus our efforts to achieve outcomes in four specific areas:

• increasing access to financial services

• advancing climate change solutions

• strengthening non-profits and co-operatives

• building successful social enterprises.

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APPENDIX B: BC TRANSIT DETAILED FUEL ECONOMY RESULTS

Table 5 BC Transit VIBES Fuel Economy Details

Dec. 2004* Jan. 2005 Feb. 2005 Mar. 2005 Apr. 2005 May - Jun. 10, 2005

Total / Average

9035 Double Decker Total Litres Dec 1 - Dec 31 4,450.5 3,816.5 4,202.0 2,641.5 4,601.0 6,620.0 26,331.5 Total Mileage Dec 1 - Dec 31 6,694.0 5,225.0 5,464.0 3,791.0 6,565.0 9,686.0 37,425.0 Litres per kilometer 0.665 0.730 0.769 0.697 0.701 0.683 0.708 Average Fuel Economy of 16 - 2002 Double Decker 0.607 0.680 0.677 0.702 0.676 0.696 0.673 Biodiesel efficiency of this bus vs. average of this fleet 91.33% 93.08% 88.03% 100.75% 96.38% 101.79% 95.10% Fuel Economy Compared to Previous Month 91.02% 94.98% 110.37% 99.42% 102.54%

9036 Double Decker Total Litres Dec 1 - Dec 31 4,118.4 2,867.0 2,851.5 4,902.0 4,320.0 6,776.0 25,834.9 Total Mileage Dec 1 - Dec 31 6,531.0 3,935.0 3,906.0 7,011.0 6,180.0 9,651.0 37,214.0 Litres per kilometer 0.631 0.729 0.730 0.699 0.699 0.702 0.698 Average Fuel Economy of 16 - 2002 Double Decker 0.607 0.680 0.677 0.702 0.676 0.696 0.673 Biodiesel efficiency of this bus vs. average of this fleet 96.29% 93.32% 92.74% 100.40% 96.63% 99.09% 96.37% Fuel Economy Compared to Previous Month 86.55% 99.80% 104.41% 100.02% 99.56%

9069 Dart Total Litres Dec 1 - Dec 31 2,119.5 2,079.0 2,360.0 3,427.0 2,250.0 3,798.0 16,033.5 Total Mileage Dec 1 - Dec 31 5,582.0 3,905.0 5,212.0 6,542.0 4,355.0 7,349.0 32,945.0 Litres per kilometer 0.380 0.532 0.453 0.524 0.517 0.517 0.487 Average Fuel Economy of 18 - 2000 Dennis Dart 0.415 0.455 0.456 0.483 0.488 0.480 0.463 Biodiesel efficiency of this bus vs. average of this fleet 109.30% 85.41% 100.77% 92.18% 94.51% 92.84% 95.03% Fuel Economy Compared to Previous Month 71.32% 117.58% 86.44% 101.39% 99.97%

9070 Dart Total Litres Dec 1 - Dec 31 877.0 1,730.0 2,543.0 2,846.5 1,482.0 2,360.0 11,838.5 Total Mileage Dec 1 - Dec 31 2,347.0 3,919.0 5,741.0 6,122.0 3,284.0 5,145.0 26,558.0 Litres per kilometer 0.374 0.441 0.443 0.465 0.451 0.459 0.439 Average Fuel Economy of 18 - 2000 Dennis Dart 0.415 0.455 0.456 0.483 0.488 0.480 0.463 Biodiesel efficiency of this bus vs. average of this fleet 111.06% 103.00% 103.01% 103.86% 108.20% 104.60% 105.47% Fuel Economy Compared to Previous Month 84.65% 99.66% 95.27% 103.03% 98.38%

9888 Newflyer Low floor Total Litres Dec 1 - Dec 31 3,115.6 2,558.2 3,035.0 2,865.5 4,077.0 5,483.0 21,134.3 Total Mileage Dec 1 - Dec 31 6,221.0 4,657.0 5,119.0 4,907.0 6,867.0 9,481.0 37,252.0 Litres per kilometer 0.501 0.549 0.593 0.584 0.594 0.578 0.567 Average Fuel Economy of 25 - 1998 Newflyer 0.531 0.574 0.574 0.585 0.586 0.578 0.571 Biodiesel efficiency of this bus vs. average of this fleet 106.07% 104.40% 96.80% 100.18% 98.68% 99.98% 100.84% Fuel Economy Compared to Previous Month 91.17% 92.65% 101.53% 98.36% 102.66%

9889 Newflyer Low floor Total Litres Dec 1 - Dec 31 3,334.8 2,671.0 2,755.5 3,831.5 4,479.0 5,202.0 22,273.8 Total Mileage Dec 1 - Dec 31 5,920.0 4,096.0 4,607.0 6,055.0 7,359.0 8,918.0 36,955.0 Litres per kilometer 0.563 0.652 0.598 0.633 0.609 0.583 0.606 Average Fuel Economy of 25 - 1998 Newflyer 0.531 0.574 0.574 0.585 0.586 0.578 0.571 Biodiesel efficiency of this bus vs. average of this fleet 94.30% 87.95% 95.95% 92.45% 96.26% 99.12% 94.21% Fuel Economy Compared to Previous Month 86.38% 109.03% 94.52% 103.97% 104.34%

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VIBES Fleet Total B20 Consumed 18,015.8 15,721.7 17,747.0 20,514.0 21,209.0 30,239.0 123,446.5 Total Mileage for B20 Buses 33,295.0 25,737.0 30,049.0 34,428.0 34,610.0 50,230.0 208,349.0 Average Fuel Economy for B20 Buses (litres/Kilometer) 0.541 0.611 0.591 0.596 0.613 0.602 0.592 Average Fuel Economy of Representative Fleets 0.518 0.569 0.569 0.590 0.583 0.585 0.569 Avg. Fuel Economy of B20 Buses vs. Rep. Fleets 95.69% 93.21% 96.35% 99.01% 95.18% 97.10% 96.03%

* December figures include period prior to start up date of Dec. 14 where test vehicles operated on petro diesel

BC Transit VIBES Fuel Economy Summary Chart

0.300

0.350

0.400

0.450

0.500

0.550

0.600

0.650

0.700

0.750

0.800

Dec. 2004* Jan. 2005 Feb. 2005 Mar. 2005 Apr. 2005 May - Jun. 10,2005

6 MonthAveragePeriod

Litr

es p

er K

ilom

eter

9035 Double Decker

9036 Double Decker

Average Double Decker Fleet

9069 Dart

9070 Dart

Average Dart Fleet

9888 New flyer

9889 New flyer

Average New flyer Fleet

Average VIBES Fleet

Average Baseline Fleets

* December figures include period prior to start up date of Dec. 14 where test vehicles operated on petro-diesel

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APPENDIX C: ACKNOWLEDGED BIODIESEL BENEFITS

Emission Reductions Biodiesel is a renewable or carbon-neutral fuel. This means that the carbon dioxide created by the fuel during combustion is reabsorbed by the plant that the fuel is derived from. Compared to #2 petroleum diesel, biodiesel creates up to a 90% reduction in lifecycle carbon dioxide emissions (this %age will increase with the production of e-Biodiesel). At the tailpipe, biodiesel creates significant emissions reductions including a 67% reduction in unburned hydrocarbons, 48% reduction in carbon monoxide, 47% reduction in particulate matter, 98-100% reduction in sulphur, 80% reduction in polycyclic aromatic hydrocarbons and a 90% reduction in nitrated polycyclic aromatic hydrocarbons.

Unmatched Energy Balance The primary method for evaluating a potential transportation fuel is to examine its overall energy balance or EROI (Energy Return of Investment). The energy balance measures the units of energy yielded for each unit of energy required to produce the fuel. A low energy balance means that almost as much energy was used to refine, produce and transport the fuel as was returned as fuel energy.

Many fuels have a negative energy balance meaning it takes more units of energy to produce the fuel than it returns in units of fuel energy.

For every unit of energy needed to produce biodiesel, at least 3.2 units (for virgin soybean crops) of energy are returned. This ratio is the highest energy balance ratio of any alternative fuel. If recycled oils are used the energy balance ratio is even higher.

Ease of Use Biodiesel can be used in any diesel engine with little or no modifications. Biodiesel uses existing diesel refueling infrastructure, and can be splash blended at any ratio with petroleum diesel. Biodiesel blends are referred to as BXX, where XX equals the biodiesel portion of the fuel. B20 is the most common blend used in North America.

Performance Biodiesel’s naturally high lubricity value extends engine life by reducing wear and tear on components that come into contact with the fuel. In fact, a biodiesel blend as low as 2% improves petroleum diesel's lubricity by as much as 65% . This fact will significantly increase biodiesel’s profile in June of 2006 when new ultra low sulphur diesel regulations come into effect. Sulphur is diesel’s natural lubricant, and its removal will necessitate a lubricity additive.

Biodiesel’s higher cetane rating results in improved combustibility, a smoother running engine and quieter operation.

Millions of km’s of on road testing indicate that biodiesel offers comparable horsepower, torque, range, and fuel consumption to petroleum diesel.

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Safety Transport Canada endorses biodiesel as a non-hazardous and non-flammable material for transportation and storage purposes, the only alternative fuel that has received this designation.

Biodiesel is considered non-toxic with a lower level of toxicity than table salt.

Biodiesel biodegrades about four times faster than petroleum diesel. Within 28 days, pure biodiesel degrades 85-88% in water. In fact, biodiesel actually accelerates the biodegradability of petroleum diesel. A B20 blend biodegrades twice as fast as 100% petro-diesel.

The flashpoint of a fuel is defined as the temperature at which it will ignite when exposed to a spark or flame. Biodiesel’s flash point is over 150° Celsius, well above petro-diesel fuel’s flash point of 51° Celsius.

Human Health Biodiesel is the only alternative fuel to have completed the rigorous Health Effects Testing requirements of the U.S. Clean Air Act. The tests show that biodiesel poses no health threats and its use results in a 90% reduction in air toxics.

For additional information on biodiesel please go to:

www.wiseenergy.ca

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APPENDIX D: SAMPLE LETTER OF INTENT WITH VIBES PARTICIPANTS

The purpose of this Letter of Intent is to confirm Company Name will participate in the Vancouver Island Biodiesel Evaluation Study to the extent outlined herein.

The study will have participating fleets run test vehicles on a 20% biodiesel blend for duration of not more than six months. The purpose of this test is to allow participants to gain a level of comfort with this alternative fuel.

The fuel, meeting stringent U.S. ASTM standards, will be imported to Victoria. It will then be blended and stored locally and distributed to participants from City of Victoria and Columbia Fuels locations.

The study is anticipated to start in December, 2004. Pre-defined feedback forms will be completed by ______ on a monthly basis to capture test results and observations made during the test period.

Final price quotes will be provided to BC Transit once a fuel order is made, however estimates received at this time are in the range of:

*Fuel cost/litre FOB North Vancouver $/litre for B100 biodiesel *Transportation to participant $/litre GST (if applicable) 7%

*Note: Costs will minimally fluctuate based on when the order is made, whether the order can share transportation costs, and the final delivery format selected based on final order size.

____________ has stated intent to purchase up to N litres of biodiesel and agrees to pay up to, but not more than, $, including GST, for this fuel.

Signature Date

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APPENDIX E: ABOUT WISE ENERGY

WISE Energy is a technical and management consulting firm providing services for the emerging Canadian biodiesel industry, with a focus on community based, GHG reduction initiatives in BC. Our areas of expertise, within the biodiesel industry, include market research and development, project development, staying current with industry technology advancements, and providing feasibility studies for potential biodiesel production opportunities in small-mid scale communities.

In 2003 - 2004 WISE worked with the B.C. Provincial Government Tax Policy group to have the road fuel tax removed from biodiesel blends up to B50.

In early 2004, WISE completed two detailed feasibility studies on the potential for biodiesel in British Columbia. The first study, prepared for Western Economic Diversification, Natural Resources Canada, the BC Government and Van City, focused on the potential for biodiesel in the province.

The second was a more focused, private study into the feasibility of building a Community Based Biodiesel Production Facility on Vancouver Island. The findings of this report continue to be used by WISE, on a day to day basis, to develop the local biodiesel market.

Following the completion of the VIBES project, WISE Energy will be primarily focused on developing a commercial scale biodiesel production facility in BC to help meet the growing need for a secure supply of cost-competitive biodiesel. WISE estimates that this facility will be operational in the summer of 2006.

WISE Energy is a proud member of the BC Sustainable Energy Association.

WISE Energy Principals Boyd, Mike: Founder, Managing Partner, [email protected] (250) 380–0570

As Director of Projects Mike has been extensively involved in renewable energy initiative planning and growth projects since 2002. He provides WISE with extensive Project Management, Business Development, Research and Strategy Analysis gained through Information Technology and Environmental Research firms.

Mike has been involved in the high technology research and development industry for 24 years. During that time, he worked for Microtel Pacific Research Ltd., in Project and Information Technology Department Manager roles, for Coopers & Lybrand in Senior Management Consultant roles, and for Environmental Systems Research Institute as an Environmental Internet Business Development Manager /Senior Consultant for national and international clients.

Mike is a past board member of the BC Sustainable Energy Association.

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Murray-Hill, Anita: Founder, Managing Partner, [email protected] (250) 382-4591

Anita has more than twenty years of management and consulting experience in a wide range of disciplines including information technologies, financial management, quality assurance, ISO standards, auditing, and project management. Prior to her involvement in the renewable energy sector Anita worked as a Management Consultant for PricewaterhouseCoopers, and LGS Group Inc. As President of Koster, Spinks & Associates Limited Anita was responsible for the development of new revenue streams and successful management of more than 200 financial projects. Anita holds a BA from the University of Victoria.

Schaddelee, Kees: Founder, Managing Partner, [email protected] (250) 382–0728

Kees is the Director of Operations for WISE Energy. He offers WISE renewable energy/fuel product and technical knowledge as well as hands on experience in biodiesel production and the field of renewable energy. Kees received his business management education at the University of Victoria and his renewable energy technical training with Solar Energy International.

Kees designed, and built a small scale biodiesel processing unit that is capable of processing over 13,000 litres of used cooking oils into an equal volume of biodiesel per year.

Kees is an active member and past board member of the BC Sustainable Energy Association.

###

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