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