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Fueling Florida's future :
strategic fit of alternative fuels in Florida /
Clean Fuel Florida Advisory Board.
Strategic fit of alternative fuels in Florida
Florida Department of Community Affairs,
19 p. :
col. ill. ;
Title from cover.
"This report was prepared ... with assistance from the Center for Urban Transportation Research at the University of South Florida."--P. .
Also available online.
Spark ignition engines
x Alternative fuels
Clean Fuel Florida Advisory Board.
Dept. of Community Affairs.
University of South Florida.
Center for Urban Transportation Research.
t Center for Urban Transportation Research Publications [USF].
y USF ONLINE ACCESS
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CLEAN FUEL FLORIDA ADVISORY BOARD Steve Somerville Chair Brorvard Co. Dept of Planning & Environmental Protection Ed Coven, Vice Chair Fla Depc. of Thmsportacion Terrill Booker 1/Llltrhassee Natural Gas Depc. Robert G Burleson Fla 1ransportation Builders Assn. Roosevelt Bradley Miami-Dade 1l'ansic Agency David E. Bruderly Bmderly Engineering Assoc. Holly Castille Fla. Propane Gas Assn. Julia Cope EV Ready Brorvard Donald Crane, Jr. Floridiar!S for Better 1l'ansporcation Robert A. Cucchi Ford Motor Co. Dotty Diltz Fla. Dept. of Environmental Protection Marcia Elder Projec t for im Energy Efficient Fla James Flood Gold Coast Clean Cities Wade L. Hopping Alliance of Automobile Manufacturers Jo A.on Hut chinson Commission for the Transportation Disadvantaged Bill Jones American Planning Association David R. M ica Fla. Petroleum Council Gary Millington Enwrprisc Fla. Inc. Vicki O'Neil Fla. Dept. of Agriculture & Consumer Svcs. Kathl een A. Randall BP Amoco C01p. Rocky Randels Fla League of Cities William R Schroyer Fla Dept. of Education S t eve S i mon Fla Assn. of Coumies Robert Suggs Fla. Power and Liglu Co. Brya n T.1ylor 1'h!nk, Ford Motor Co. John Thomas Fla. Institute of 1echnology R. Ed Underwood Fla Dept of Managemerll Svcs. Harold L. Young MiamiDade Co. Public Schools William Young, Jr. Space Coast Clean Cilies Harry Zehendet Sunrise Gas Depc.
Sti'W S0tnM1iUe, Chair Broward COUitty Uept of P lanning & En\'b'ottmtmtal Protection Ed OnotJt. 0cpar1ml::ot .X'D'-'J\$POrt.ltioo 9oilrcl 'n:rrlll I.J(l(.IJ.-.:T l:dlabassee Natural Cas Dept. RooKIO't'lt B:nu/lcy Mt'tl'OOade 'n'.utSit ilo6CJ)CY David E BI'U4etlt Brude.th' Ell8,ioct.ring Robert G. Blu'tt$on Florida 'n".tn.Sportatlon Bulld.el$ Assoc. HollyCas!t11c Florida Gas Assoc. Jalio. BV Read}' Broward Dottald Clnnt. Jr. Fk>ridiomfl ff)r 'lhln$portalion Robm A. CttethC l'tt.w 1lUNK Mol>ility,LLC John Tftomas F l orilb lnS!iluteof'RebooJogy R. d UndtrWOCd Departm-en t of Management Services HoNM 1 M.lami>l>dc County Publi(: SchoOl$ Wilfia.m \bwtg, Jr. Fl
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TABLE OF CONTENTS Overvie\v . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S What are Alternative Fuels and Alternative Fuel V ehicles? ........................... ... 6 Why is Expansion of the Alternative Fuel .Market Important? ........................... 6 The State of the Current Alternative Fuel Vehicle Market in Florida .. .. .. ....... ... 9 florida Success Sto r ies .. . . . . . . . . .. .. .. .. . .. ... . . . .. . . . . . . . . . . . . . . .. . .. 9 EV Ready Broward ....... ..... .. .. . .. . . ...... ... ..... .. ... .. ....... . .. . .. .. .. .. 9 Gold C oast Clean Cities Coalition ... . .. .. . .. .. .. .. ... ..... .. .. . .. .. .. . .. 10 Broward County .. .. .. . .. ... ... .. . .. .. .. . .. .. .. ... .. .. .......... ..... ........ 10 C ity of Sunrise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Sarasota County ....... .............. ............ .... ........ ......................... ...... 1 1 Neighborly Senior Services ............................................. .. .. ........... 11 Public n-ansit Systems .. ....... ................... .. .. ........................ ..... . 12 Clean F uel Corridors ... .. .................. ..... ..... .. .. .. ........ ..... ............... 12 What are Some of the Current Obstacles to Expansion of the A F V Market? ..... 13 I The C ase fo r Enhancing the Alternative Fuel Market i n Florida ......... . .. .. . ..... 14 Recommendat i ons .. .............................. .. .. ..... .. ... ..... ....... .. .. .................... 18 Moving For\Vard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fueling
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OVERVIEW Thro ugho u t 2000, the issue of rising gasoline prices became a regular feature of news headlines. Fuel protests in Europe have threatened the economies of several coun tries. Retail gasoline p r ices in the U.S. increased na tionally fcom $1.16 per gallon In the summer of 1999 to a n average of $1.60 per gallon by t h e winte r of 2000. The nation's t ransportat ion syst em re li es heav il y on the supply of gasoline and dies el fuel to bring food to t ables and workers to jobs. The t ransportatio n sector of the U S remains more than 97% depen -The transportation sector of the remains more than 97 % dependent on petroleum fuels and consumes approximately of the nation's oil demand. dent on petroleum fuels and consumes app r oximately 2/3 of tbe nation's oil demand Highway transportation alone uses more than half of the nation's oil demand while the number of vehicles on our roads and miles driven contin u e to steadily increa se. As a result, U.S. oil import demand s co ntinue to rise concurrently with an increas e in the global de m and for oil. Worldwide oil reserves are becoming more concentra ted in a smaller num ber of countries. Th i s situ ation leaves the U.S. Increas ingl y vulnerable t o the po t e n t i ally serious adve rse e co nomic impacts of disruptions in oil sup ply. The large and growing levels of oil imports also represent a major transfer of wealth from the United States t o o il exporting countries; in 1999, thi s exceeded $49 billion. Coupled w ith decreasing air quality and increasing global competit ion in transportation technologies the nation's attention is focused on the issue of energy policy and the need to secure our energy future Consumers want more than an explanation abo u t ri sing fue l c osts; they want solu t ions. Po l ie)' makers need to ensure a sound economic future. Fortunately, in Florida tbe work is well under way to improve energy s e curity, es tablish an environment for energy choices, and to s trengthen the economic future of the state. In 19 99, Governor Je b Bush signed the Florida Clean Fuel Act, which e st ablished the Cle.m Fuel Florida Advisory Board to study alternative fuel vehi cle s and formulate and provide policy recommen d at io ns. The B oard is now developing an actio n plan for the mid and long term to remove obstacles This situation leaves the increasingly vulnerable to the potentially adverse economic impact of disruptions in oil supply. to the development of an alt e rnativ e fue l market in F lo rida, create a business and con sumer e1wironment to support a thriving alternative fue l indu stry, and recommend stra tegic investments for the market to grow. Expanding the use of al t ernative fu els in Florida will enhattce the quality of life in the state and contribute to its continued e cono m i c pros pe rity. Promoting a cohesive program of altema tive fuel u .se offers large potential reward s to the st ate, w ith minimal risk.
WHAT ARE ALTERNATNE FUELS AND ALTERNATIVE FUEL VEHICLES (AFVs)? Alternative fuels include nat ura l gas both liq uid (LNG) and compressed (CNG); propane (LPG); electricity; b io diesel (d i esel fuel produced from a source other than petro l eum, alone or mixed with traditional diesel); alcohol (both methanol and ethanol, al one or mixed with gasoline); hydrogen; and synthetic fuels. Vehicles that use these fuels are regarded as alternati v e fuel vehicles and fall into three major categories: dedicated-designed to use only one specif i c alternative fuel bHuel I flex fuel I dual fuel-capable of operating on two different fu els, usually a trad itional and an alternative fu el hybrid-uses electric and another fuel source simultaneou s ly for propulsion Flex fuel tech n ologies and dedicated or b i -fuel systems for CNG and LPG are well developed; fuel sources for hybrid electric applications such as h)drogen for fuel cells, still require development prior to commercial use. Expanding the use of alternative fuels in Florida wiU enhance the quality of life in the state and contribute to its continued economic prosperity. WHY IS EXPANSION OF THE ALTERNATIVE FUE L MARKET IMPORTANT? Two primary f actors drive the im portance of AFVs the economy and the environment. Florida Energy Consumption by Sector UiOO ... . .. . ....... --.... .. .... 0 0 -""' ....(: AI'-' : ----o e -------------S:\Iu: a, Im ,., r..vM : !\\1 ---o-Cummci11! 1111:1\UtrUJ ECONOMIC ISSUES Florida and U S dependence on gasoline as a transportation fuel source continues to grow while more and more of the oil is im ported. Petroleum imports make up about half of the u.s. trade defici t and are esti mated to accoun t for up to 70% within the next 20 years Military spendin g to protect U S interests in the Gulf region cost an e s tima t ed $57 billion per year. The t ransportation sectot is a ma jor con tributor to the growing U.S. trade def i cit and is the leading sector in t h e use of energy Import s of oil and motor vehicles and parts accounted for 57% of the $322 4 billion defi cit in 1999 imposing l arge penalties on the nation's economic growth and a lo ss of do -1
mestic jobs. 1b the consumer, transportation accounts for about 14 % of the total personal consumption expenditnre of $86.4 r rl lllon (in 1 999). In 1999 consum ers spent S99 billion on new can for personal use, and $134 bil lion on fuel and o il. To business and Indus try, tr ansportatio n costs are a signifi can t com ponent of overaJI operating costs, and the sustainablllty of our transportation sys t ems is a major concern U transportat ion related cos r s are reduce d through enhanc ed fuel choices it could provide significant direct benefits to consumer pocketbooks and busi-ness profits U.S reserves of petro leum are not ma t ched b y consumptio n patterns. Accordin g to the U.S. En ergy Info rma tion Office, imports exceeded domestic suppli es of petroleum in 1993 and h ave been grow ing as a percen tage of our supply e v e r s ince In Florida, petroleum is, b y far, the leading sourc e of energy consumed in our state Coal and natural gas are the n ext two most significant energy sources, primaril y for electric po w e r generatio n Transportation consumption patterns can be cha n ged t hro ugh t h e increa sed use of a lternative fuels. This fac t is central to why U.S. an d Florida poli cy makers should look to AFVs as a s tart to a fresh energy approac h. Consumption of gasoline in Florida in 1999 was over 18 million gallons daily. Petroleum consumption in Florida is projected to grow US Petroleum Consumption and Supply Yttr I P'd&;;:r r ,e Hd I f transportatio n-related costs reduced through enhanced fuel choices, it could provid e sigirtifican direct benefits to consumer pocketbooks and business nrofit!L at rate of 1. 896 each year over the next 20 years and, at this projected rate, will exceed 28 million gallons (671,000 barrel s) per day by 20 20. Florida Energy Consumption by Fuel Type Of additional concern to Florida's poli cy mak ers is sustained eco nomic activity and In creases In living standards for Florida citi zens. The state's highway system is essen tially rel i ant o n just one source for fuel pe troleum It is difficult to imagine any busi ness in the position of dependence on a single supply yet this i s th e position that Florida and th e nation find th emselves In with their heavy dependence on pet r oleum as a trans portati on fuel. To ensu re that the transpor'""" ,..., 1 ,600 2 "" 1.200 .. ,.., i = ..... ......... . V..) . .... ......... . . ............... ... 20) ....... --. ---. ---. -----.,... ---
consumption in is projected to grow a rate of 1.8% each year the next 20 years and, this projected rate, will xce1!d 28 million gallons per day by 2020. tation system can conlinue to be accessed and utilized well into the f u t ure, it is prudent to reduce dependence on a finite resource such as petroleum and foster the use of al ternative fuels The transportation sec t or is a key component of the U.S. economy, representing over 16% of the U.S. Gross Domestic Product, with 1 5 % of the U.S. work force be i ng empiO)ed in jobs directly re l ated to transportation. The sta t e now stands poised to develop and nurture advanced transportation technologies and take ad vantage of the opportunities offered by the growing global mar ket for motor vehicles. Recent projections indicate that much of the future growth in motor vehi cle sales will occur overseas, espe cially in deve l oping markets. ENVIRONME NTAL I SSUES Extensive data collected throughout the U.S. have led to the recognition that Florida Daily Motor Fuel Consumption a major contr i butor to our country's air quality problem is the exhaus t from highway transportation vehicles To address these problems. regulations and techno l ogy deve l opments have targeted highway vehicles as specific pollutant sources. As a result of the Clean Air Act and the introduction of new technolo gies, emissions per vehicle mile have been reduced by more than 90 percent since the 1960s. However, due to the arid'a now stands poised to develop and nurture adiValtced transportation technologies and take advantage of the 1po; rtw'!ities offered by the rowiTU!. global market for I!Wtor vehicles. dramatic increase in vehicle miles trav eled, transportation still remains a major contributot t o U.S. emissions of pollutants. Assuming continued growth in the number of licensed motor vehicles, as well as continued growth in vehicle miles traveled, much of the ga i n in cleaner air antici pated from new motor vehicle technologies will not be realized unless something is done to reduce aggregate demand for petro leum as a transportation fu e l source. Regardless, man y of the new motor vehicle technologies continue to use non renewable petroleum as their primary fuel source. The transportation sector is by far the largest consumer of petroleum fuels in Florida and the U.S. and accounts for about 33% of carbon diox i de and NOx emissions, 77% of carbon monoxide em issions, and more than 33% of volatile organic compounds. Alternative fuels can reduce emissions of many of these pollutants.
THE STATE OF THE CURREN T ALTERNATIVE FUEL VEHICLE MARKET IN fLORIDA Alternatively fueled vehic les have moved into the main stream and are in wide use in private aod gover nment fleets. The U.S. Department of Energy estimates that more than 430,000 alternat ive fuel vehicles are on the road in the U nited States today Throughout Florida, alternative fuel vehicles are successfully servi ng the i r com munities and busi nesses, as the success stories that follow will illustrate. A survey conducted by the Center for Urban Thmsporta tion Research at t h e Univers ity of South Florida i n Thmpa in mid 2000 identified 5 725 AFVs in 25 counties in Florida. More than 50% of the reported AFVs are private busi n ess or local fleet vehicles. Of Florida's AFVs, the federal gov ernment fleet operates 33%, State government fleets oper ate 3% and energy providers operate 13% The remaining AFVs are local or municipal fleet s or vehicles operated by pri vate businesses and individuals fLORIDA SUCCESS STORIES The following suc cess stories briefly outline some of the a l ternative fuel vehi cle programs already under way in Florida. EV READY BROWARD (EVRBJ Partnering public and private secto r entities can ensure sus tainable and economically viable alterna tive fue l programs. I n recognition of the need for stro n g, committed private/ public partnerships to advance the broad-based implemen tation of zero emission transportation Broward County joined forces with Florida Power & L ight Company, South Florida Regional P lanning Cou ncil, and key commun ity leaders to establish EV Ready Browar d (EVRB). EVRB is one of the 11 nationally designated electr ic vehicle market launch sites and h a s been the impetus for the implementa tio n of electric ve hicles and infrastr uctur e in Broward Coun ty and surrounding areas. Additiona lly, EVRB was the drilling force behind the creation of the Clean F uel Florida Coalition, the forerunner to t h e Clean Fue l Florida Advi sory Board (CFFAB), and the successful passage of legisla tion t hat established the CF'FAB. Since it began, EVRB vol unt eers from both the private and pub lic sectors have mar shaled resources t o influence public policy changes in sup port of zero em ission transportation such as amending Much of the gain in cle11ne anticipated from new vehicle technologies will realized unless sonrtetJ'zinl done to reduce demand for petroleum transportation fuel wu;rr, Florida ArV Fuel l)lpe CNG LPG E851 EV MSS Hybrid-elect. Transit Total Total Vehicles 2,1 s 1 2,466 601 352 128 11 16 5,725 lndudes only fleet vehldes operAted on 2 r nclvdesdleser neet Whld-e-s Ol>etated on Blo-
FY2000, general fleet drivers Broward County logged more 600,000 miles operating on alternative fuel, resulting in cost savings of $22,000, a reduction of more than 140,000 pounds of carbon dioxide emissions, and the of more than 41,000 gallons of gasoline. In 2000, Gold Coast Clean Cities Coalition ola,ced in service 22 CNG and 3 bi-fuel propane which will displace over 20,000 gallons of gasoline annually. Broward Count y Building Codes to require all s ingle fam ily homes to be built EV ready Education and community outreach have been the cornerstones of EVRB, wit h volun teers working with area high schoo l s in the building of elec tric vehicles and bringing awareness to younger students about electric transportatio n and environmental be nefits. EVRB and Gold Coast Clean Cities Coalition work together to maximize the membership and resources of both groups, creating a strong synerg i sm for the implementation of al ternative fuel vehicles in the South Florida area. EVRB' s Community ll'ansportation Initiative discussed in the pub lic transit systems is a good example or t hese two groups' collaborative efforts GolD CoAST CLEAN Cmes CoALmoN The Gol d Coast C l ean Cities Coalition (CCC), based in Broward County in southeast Florida, is a prime ex ample of the impact that clear leadershi p. dedication, and public/private partnerships can play in the promo tion of alteroative fuel use. Almost 2,200 alternative fuel vehicles are operating in the area by organizat i ons and agencies such as the l ocal police, Broward County, and the United States Postal Service. Miami Beac h Deerf i eld Beach Coconut Ct eek, Sumise, and Ft Lauderdale all operate alternati ve ly fueled transit b uses More than 60 alternative fuel vehicle refueling sites were added in the coalition area in 1 999 and it is estimated that more than one million gallons of g as oline and diesel fuel are being displaced annually beca use of the use of alterna tive fuels Severa l successful coop e rati ve agreements promote the use of alternative fuels in the area, with one program providing vehicle cost rebates for alternative fuel fleet operators T he program used U.S. Depat1ment of En ergy (DOE) grant funds and l ocal matching funds to purchase 22 CNG vehicles and 3 bi fuel propane vehicles, which are estimated to travel over 300,000 miles annu ally and will d i splace over 20,000 ga ll ons of gasoline. BROWARD CouNTY Broward County began its Alternative Fuel Vehicle (AFV) program in 1988, and, since that time, more than 193 AFVs have been introduced into the County's genera l purpose fleet, utilizing compressed natural gas, liquefied petroleum ga s (propane), and e l ectricity as fuel. In FY2000, genera l
fleet drivers logged more than 600,000 miles ope rating on an al temative fuel, resulting in fuel cost savings of $ZZ,OOO, a reduc tion of more than 140,000 pounds carbon dioxide emissions, and the displacement of more than 41,000 gallons of gasoline. As a result of this success, significant plans are under way. CITY OF SUNRISE Sunrise, in Broward County, has been using alternative fuels since 1993 and is success story on two levels-AFV operation and al temative fuel provider to other fleets. Currently, the City oper ates 140 CNG AFVs, the bulk of which are operated by the police department. The City has both dedicated and bi-fuel vehicles and uses approximately 100,000 gasolin4H!quivalent gaUons of CNG annuaUy. The City also partnered with the U.S. Postal Service (USPS) to provide an overnight fueling site on USPS property which serves both the USPS and the City. The City fac!Utated the i nsta Jlation of th e station and trained USPS supervisors to operate the fuel dispensers, resulting In the City's municipal gas utility expanding its market and Increasing revenues wltile allowing the USPS to meet federal comp li ance. SARASOTA CouNTY The Sarasota County Sheriff's Department has been using LPG since 1978 and has more than 225 bi-fuel vehicles. The Department's vehicles trav el more than 5 miUion miles per year and consume more than 330,000 gasoline equivalent gal Ions of LPG, saving more than $100,000 per year in fuel costs. The program also reduces emissions of CO by 6 tons per year, and co, by more than 2 million pounds per year. Addition auy, the Sheriifs emergeucy response vehicles are In a better position to maintain operations and serve lhe community as its vehicles can operate on either gasoline or LPG. NeiGHBORLY SeNIOR SeRVICES Located in Clearwater, Neighborly Senior Services (NSS) serves the retirement community in Pincl las County. provid ing adult day care, in-home care, meals and transportation. NSS has been using bi-fuel CNG buses since 1 980, operating 47 vehicles, in eluding 27 bi-fuel CNG buses. NSS uses approximately 52,000 gasoline-equivalent gallons of CNG annually and expects fuel sa vings in excess of $40 ,000 for flscaJ year 2000. Additionally, the organization has reduced annual emissions of CO by 18,000 lbs and NOx by over 1 ton. The Sarasota County Department's vehicles nwre than 5 million mue year and consume more 330,000 gasolirre-equivQ gallons of LPG, swing than $100,000 per in fuel costs. NSS uses aPJJT"O:tirn 52,000 gastJlilll equivalent gCUW11! CNG annually expects fuel sautn, excess of :;.q,u,uvu fiscal year
Miami Beach Transportation 11n1lgE!11Umt Association estimated its Electrowave System service has eliminated more than 3. 7 million vehicle miles in one of South Florida's most heavily congested transportation areas. recognizing the need to :vana concentrated areas of fuel activity, the concept of a clean fuel rn
low the AFV drivers to operate their vehicles in a muchexpanded area. As volumes increase tbe sites will be con verted to public access with commercial credit cards read ers similar to those a t gasoline stations. WHAT ARE SOME OF TH E CURRENT OBSTACLES TO EXPANSION OF TH E AFV MARKET? Significant and ongoing alternative fue l vehicle programs are already established in Florida. However, there are sev era l barriers to further expanding the AFV market in the sta t e, particularly into the priva te, non-fleet sector. The ob stacles include fue l and veh icle availabilit y and consumer awareness. Operators of alternative (uel vehicles must be able to re fuel in a c ost and t ime efficient manner, with refueling infra structure access comparable to traditional fuels. The question is whet her it is best to first ensure that a suffi.. cient level of refueling infrastructure is i n place or to ens ure that a large e nou gh fleet of alternative fuel vehicles is in p lace that will patronize the refueling sites. The answer is that a simultaneous rollout of both must occur, as vehicles without fuel are just as ineffective as refueling s ites without customers Growth in the Fl orid a AFV market initially revol
rtrot!lgh developmen t an alternative fuel nn;rkt Florida can improve energy security, create dditij1nj1l economic for the state, uttwL a competitive and address the of the statewide ;'cortsu1ner market. a supplier of technology automotive mponents, Florida position itself to advantage of markets both iomtesti!ca/,/y and THE WE FOR ENHANCING THE AlTERNATIVE FUEL MARKET IN FLORIDA F lorida can stake a claim in emerging techno l ogi e s through the dev e l opment of ao alternative fuel market. In doing so, the state can im prove energy security, create additional economic act iv i t y for the state, attain a compet itive edge, and address the needs of the statewide con sumer market. F l orida has a n u mber of qualities essentia l in the creation of an ad vanced t echnolo gy vehicle industry and market: It is a stat e dependent upon transportation for its national and in ternational tourists and its ex t ended geograp h y and flat topogra phy are ideal for many alternative fuel vehicle types. It serves as the point of departure or entry for much of Central and South America. It has a relatively war m climate that supports use of multiple alter native fuel types. As a result, F lorida is targeted by auto manufacturers as one of the key ea r ly markets f or advanced vehicles Representatives from ve hicle Origi nal Equi pme n t Manufacturers and energy providers have stated that Florida is one of the strongest markets for these ve h i cles. T he rat io nale given includes t he prevalence of two-car households with one of the ve. hicles being for short distance use. Shorter trip len gths associa t ed with an aging population and com muting patterns in the state also support this view All of these elements point to a strong market for t hese vehic l es i n our state. As a supplier of emerging technology au tomotive componen ts, Florida can position itself to take advantage o f new domestical and interna tional markets. The state already has an established base of both cur ren t and leading-edge technology businesses. The Florida vehicle manu facturing industry, including automobile, truck, rail, and small and industrial vehicle segm ents, is concentrated in two areas: vehicle sup pliers providing parts, which provides the majorit y of t he employment, earnings, and output base for the industry in the state; and a growing number of co mpanies serving n iches in the ad vanced vehicle technolo gies industry, in cluding maglev, electric bicycle small electric vehicles, component suppliers to the EV and electric I hybrid bus manufactur ers fuel c ell s, and the production of hydrogen, ethanol and b i o-diesel. T hes e companies hav e ide n tified areas such as electric v e hicle maint e nance, fuel cell esea rch, and alternative f uel technology development as having the potential to grow as new markets for vehicles grow More than 50 .000 empl oyees are reported at over 1,200 firms involved in t h ese sectors in Florida. Florida can l e verage the existing alternative
fue l vehicle market and the current business activity in this sector into a progtam that will imp r ove ene rgy security, capi tallze on the business potential, develop a higher level of eco nomic competitiveness, and address consumer needs. THE POTENTIAL FOR CONTRIB UTING TO ENERGY SECURI'TY Florida can do its part in reducing the U.S. dependence on imported petroleum. A secur e source of energy means both a stable supply and a stable price. The U .S. holds approximately 6% of current known oil reserves and i s hig hly dependent u pon foreign sources of oil. In July 2000, the u.s. released oil from the Federal Strategic Petroleum Reserve in an effort to ensure adequate supplies at reasonable prices for con sumers. For both t h e U S and F lori da, a reduced depende n ce on imported oil can minimize the effects of oil price increases and protect the state from con c erns over supply iss ues. Futhermore, the U.S. refinery system has little excess capacDisruptions to the supply petroleum to Florida wo1:zL have significant and effects on Florida's eco110m activity and growth location of Proven Oil Reserves ity, and cont inui ng growth in the number o f dis tinct gasoline types being delivered to different l ocations increases the potential for temporary supply disruptions and increased price volatil ity. Disruptions to the supply of petroleum to Flor ida would have si gnificant and adverse ef fects on Florida's economic activity and growt h. Asia Padfic 4% Frmr Soviet Union 6 % Central & South America 9% Motor fuel consumption in Flori d a will exceed 20 million gallons per day in 2001. At projected growth rates daily consumption will exceed 28 million gallons by 2020 By that time, U S de p ende n ce o n foreign oil resources is projected to exceed 64% of annual consumptio n Indeed, Florida must be especially concerned because it has experienced considerable growth in both population a n d affluence ove r the last 25 years, leading to above average growth in motor vehicle ownership, vehicle miles traveled, and gasoline consumption. By the mid 1990s F l orida had one of the highest rates of gasoline consumption in the n at io n. In 1 996, median percapita gasoline consumption in Flori d a wa s 525 gallons per yeat; compared with only 482 gallons per year in the rest of the U .S. (excluding California). Use of alternative fuel vehicles will greatly diversify the type of fuel used reducing the amount of petroleum that the U S and F lorida imports and reducing the threat associated with disruptions in the oil suppl)' Florida must be especially concerned about oil consumption, because it has experienced considerable growth in both population affluence over the last 25 yelltr: leading to above-average growth in motor vehicle ownership, vehicle miles traveled, and gasoline consumption.
RECOMMENDATIONS There is significant additio na l effort required to thoroughly investigate and rec ommend s trategies for t he advancement of al t ernative fuels and ,,Jternative fuel ve hicles in Florida. With the tremendous potential for Florida t o contribute to energy security, increase busi nes s and foreign trade, contribute to Florida's economic competitiveness. and develop a cons umer market, the following actions are recommended to enhance the use of alterna tive f uels in Florida. REESTABLISH THE STATE SALES TAX ExEMPTION FOR SALE OR LEASE OF ELEC TRIC VEHICLES AND RE-
APPROPRIATE A SuM IN THE fY 2002 BuDGET FOR CLEAN fUEL PROGRAM DEVE L OPMENT. There are currently n o remaining resources fo r the Department of Comm unit y Affali's' Energy Office or the Clean Fuel Advisory Board to fulfill their mandate. A $500 000 ap propriation would allow the Department to continue program de v elopment and public awareness in. itiati v es that the Board is contemplating As a part of t he Board's continuing program development process, it will study and ma ke recomme nd ati o ns regarding finan cial, regu l atory, and policy incentives for the acquisition and operation of heavy duty, mediumduty and light-d ut y AFVs, low speed veh i cle s, and electric bicycles. In addition, until a statewide program is proposed, a portion of this appropriation could help ensure the conti nued viability of the Clean C it ies Coalition approach. MoviNG FoRWARD T he Boar d envisions that this report forms the basis of an ongo ing effort to eva luat e th e strat egic fit of al t ernative fuels i n Flori da. In the immediate future, it is important to conduct a more thorou gh analysis o f the economic social, national security and environmental consequences of current energy u se To be effective decision makers, the Florida Governor and l egislators will need an evaluation of incentives, sup port, and co fun ding program s that hav e b een applied or p r oposed both in F lor ida and nationally for increasing the u s e o f alternative f u els. T his ma y inclu(le an analy sis of tax and emissio n credits and emissions trading. The adoption of performance standard s for use by State agencies s hould be assessed as a means to provide s upp ort to the goal of incr ease d alternative fuel use. Ed ucation programs should be devel oped and implemented for their potential to create a consumer ma rket as well as to address future technology requir ements Community outreach ef fo rts can also assist in raising pu b li c aware n ess and enthusiasm to help e re ate the criti ca l mas s to e n sure a h ea lthy and s u stained market for AFVs. N atio na lly and within Florida, the Clean Citi es programs have had consider able succ ess in reducing petroleum consu mption and e miss ions of pollut ants. The s e approaches should be further evaluated to de term ine their fit in energy policy (or the state Thirteen sta te s have adopted emission lim its fo r truck and bus engines. Consid erat io n should be give n to adop ting similar emission limits in F l orida. This work can be realized t h rough the ongoing efforts of the Clean Fue l F lorida Advisory Board and the Department of Communi!)' Affairs. With continued sup port, a long range plan can be devel o ped that will include recommendations beyond t hose i n clu ded here and establis h a strategi c directio n for expa n ding the use of alterna tive fuels in F lorida. Broa de n ing fuel choices w ill enhan c e Flo rida' s competitiveness and he l p ensure a strong economic future. Thr ough the increas ed use of alternative fuels Flor ida can assure e n ergy security, create new business opportunities, and enhance th.e environment. Flor ida can become a lea der in these new technologies. Efforts must continue to plan and im p le ment an alternative means of fueling Flo ri da's future
This report was prepared by the Clean Fuel Florida Advisory Board wilh assistance from the Center for Urban Transportation Research at the University of South Florida. Published by Florida Department of Community Affairs 2555 Shumard Oak Boulevard Tallahassee, Florida 3239921 00 1 877 FLA DCA2 (toll free) 1 877 352-3222 http:;;www. dca.state.fl us GOVERNOR Jeb Bush SECRETARY Steven M. Seibert CHIEF OF STAFF Pamela Duncan Produced by Center lor Urban Transportation Research University of South florida 4ZOZ East Fowler Avenue, CUT 100 Tampa, florida 336ZO January 200 I printed on recycled paper .
Center for U r ban Transportation Research College of Engineering, University of Sout11 Florida 4202 East fowler Avenue, CUT tOO Tampa, fL 33620-5375 (813) 9743120, Sun Com 574 3120, Fax 9745168 unvtv. cutr.eng. usf .edu