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Oct. 26, 2004

Metro Transit pilot project may tip balance for new statewide industry

Venture produces largest biodiesel-powered fleet in the state

» Related information: Biodiesel pilot program Web site

King County Metro Transit’s nationally recognized fleet of clean buses is about to become even cleaner, and will help bring to Washington the first in-state commercial-scale production of biodiesel fuel made from seed crops. The pilot program will also serve as an investment in Washington’s sustainable future.

Today, the first buses in Metro’s fleet got an extra shot of homegrown biodiesel power to help reduce the agency’s reliance on imported oil while increasing statewide demand by an estimated 30 percent or more for the alternative fuel. Metro’s consumption of up to one-half million gallons of biodiesel over the next two years will also help stimulate the production of farm commodities that are used to manufacture biodiesel, creating benefits for both the environment and economy.

“Metro Transit’s commitment to piloting the use of biodiesel will make it the single largest user of the fuel in the State of Washington which will, in turn, significantly increase markets for this clean burning alternative to fossil fuel,” said King County Executive Ron Sims. “When combined with new hybrid buses, electric coaches, and its use of Ultra Low Sulfur Diesel fuel, this newest commitment to clean air will make Metro a national model in pioneering the use of cleaner burning energy sources to produce lasting environmental benefits for our region.”

As part of a Seattle City Light greenhouse gas mitigation program, Metro has committed to using a five percent blend of biodiesel to help power its fleet of more than 1,200 diesel buses over the next two years. The fuel will be blended with Ultra Low Sulfur Diesel, which will reduce greenhouse gases and improve on the 90 percent reduction in tailpipe emissions the agency has already achieved. The transit agency anticipates approximately 325 buses from its Ryerson and Bellevue bases will be using the cleaner burning mix by the end of this year, with the entire fleet of diesel-powered buses to be converted by the end of 2005. The county’s solid waste division has additionally agreed to purchase and use up to 50,000 gallons of biodiesel for its operations.

"Seattle leads the way in reducing greenhouse gas emissions," said Seattle Mayor Greg Nickels. "This partnership brings us closer to our goal of being greenhouse gas neutral in 2005. As demand for biodiesel increases through these efforts, the price will decrease and availability will increase," Nickels added.

"City Light is one of the greenest utilities in the nation, but we do produce some greenhouse gas emissions," said Superintendent Jorge Carrasco. "Mitigation projects like this, along with those we have with the Washington State Ferries and with commercial garbage trucks are important. They offset those emissions and at the same time benefit the utility and the community."

In addition to cleaner air and reductions in climate-altering greenhouses gases, King County and Seattle City Light are hoping their partnership will deliver added market development benefits. Demand for biodiesel has been growing rapidly, and now the industry has reached a tipping point where the first in-state commercial-scale production is viable. Farmers and developers throughout the region are actively pursuing their business plans to bring this new clean, renewable industry to Washington State.

“We are looking at a transformation of the diesel fuel market by providing a meaningful alternative in a way we never have before,” Sims said. “This is an investment in our economy, the environment, and in our oil independence. And, it all starts at home with crops grown in Washington State.”

The link between greenhouses gases and global warming is raising concern among scientists locally and throughout the world. In the Puget Sound region, vehicle emissions are the leading cause of greenhouse gas. If actions are not taken to curtail these emissions, scientists warn this region may experience climate changes that will have a significant impact on our economy and quality of life. The potential dangers associated with global warming include reductions in mountain snowpack and water supply, less hydroelectric energy production, recreation, the declining health of Northwest forests, and reductions in native wildlife species.

Metro anticipates it will cost about 6.3 cents per gallon more to use a five percent blend of biodiesel as compared to the cost of a gallon of pure Ultra Low Sulfur Diesel the fleet currently uses. However, a $200,000 grant from Seattle City Light is expected to cover the cost of using the fuel through 2005. A new federal tax credit designed to stimulate consumer demand and markets for biodiesel may also lower prices for the fuel and make it more competitive with regular diesel. The new tax incentive, approved by Congress earlier this month, is expected to take effect on January 1, 2005.

Over the next two years, Seattle City Light and King County will monitor the program and document actual reductions in greenhouse gas emissions tied to Metro’s use of the biodiesel. The pilot program will also encourage in-state farm production, biodiesel development and consumer demand to determine the effectiveness of the partnership. Meanwhile, Metro will be carrying the message one step further when it takes to the streets with a new “wrap” to remind King County residents of all that’s being done to promote homegrown, renewable fuels that make our air cleaner. Both the message and a bus—wrapped to look like a giant bottle of vegetable bottle—will be hard to miss.

Also today, King County learned that Metro is one of six organizations being recognized by the Environmental and Energy Study Institute as a National Clean Bus Leader for 2004. For more information on this prestigious award, visit the EESI website. (external link)

Biodiesel pilot project for
King County Metro Transit buses

Implementation:
  • Currently, King County Metro Transit’s fuel consumption is 10 million gallons per year; which makes it the single largest on-road diesel fuel consumer in the state.
  • All of the diesel vehicles in Metro’s fleet (approximately 1,200) currently operate on Ultra-Low Sulfur Diesel (ULSD), the cleanest diesel fuel commercially available.
  • Metro will soon begin using a biodiesel blend, as part of a two-year pilot project.
  • This year, just the diesel buses at Metro’s Ryerson and Bellevue bases will be fueled with the B5 blend (5 percent biodiesel/95 percent ULSD). Metro estimates it will use 20,000 gallons of the blend by the end of 2004 in approximately 326 buses.
  • Metro will expand its use of biodiesel to the entire Metro diesel fleet by the end of 2005. Metro must address warranty considerations with some of its bus manufacturers, before all diesel buses can use biodiesel. Trolley buses will continue to operate on electricity.
  • Metro estimates that fueling its entire fleet with the biodiesel blend will require approximately 450,000 to 500,000 gallons of biodiesel a year. This would make Metro the largest single biodiesel consumer in the state.
  • Also, King County Solid Waste is making a commitment to use 50,000 gallons of biodiesel in 2005.

Financing:
  • Seattle City Light will provide up to $200,000 to cover the cost of Metro’s biodiesel purchases in 2005. City Light is providing this funding through its Greenhouse Gas Mitigation program.
  • King County Metro Transit will cover all its biodiesel fuel costs in 2004 and 2006, up to a maximum of $450,000.

Biodiesel cost:
  • At the end of September, Metro paid $1.73 a gallon for ULSD. These fuel prices have fluctuated greatly during the past two years. The latest state-authorized fuel prices can be tracked online. (external link)
  • Currently, the national price for pure biodiesel is about 85 cents more per gallon than ULSD, but the 5 percent blend is only six cents more (Alternative Fuel Price Report, Department of Energy). New federal tax incentives may lower the cost-per-gallon for biodiesel as soon as next year.

Greenhouse gas impacts:
  • Greenhouse gases consist of a variety of emissions that are known to cause climate change. Among those gases is carbon dioxide.
  • Transportation activities produce about one-third of the total carbon dioxide emissions in the United States. According to the Puget Sound Clean Air Agency, transportation produces about 60 percent of carbon dioxide emissions in the Puget Sound region due to urban levels of traffic and congestion.
  • In 2006, Metro’s demonstration program should reduce carbon dioxide emissions by 4,000 metric tons annually. This is equivalent to the annual carbon dioxide emissions from 800 cars.

» Related information: Biodiesel pilot program Web site

Updated: Oct. 26, 2004

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