COUNCIL OF THE CITY OF PHILADELPHIA LEGISLATIVE OVERSIGHT COMMITTEE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, November 1, 2005 2:10 p.m. - - - PRESENT: COUNCILMAN JAMES F. KENNEY, CHAIRMAN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILWOMAN MARIAN B. TASCO COUNCILMAN DARRELL L. CLARKE RESOLUTION 050837 - Resolution authorizing City Council's Legislative Oversight Committee to hold public hearings on whether the Office of Fleet Management's vehicle purchasing policies should require a preference for the purchase of alternative fuel or hybrid-electric vehicles, which will facilitate savings, reduce fuel consumption, and promote a positive image of Philadelphia as an environmentally-conscious City. - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
Good afternoon, ladies and gentlemen. Thank you for your attendance. This is the Committee of Legislative Oversight to hear testimony on a resolution authorizing Council's Legislative Oversight Committee to hold public hearings on whether the Office of Fleet Management's vehicle purchasing policies should require a preference for the purchase of alternative fuel or hybrid-electric vehicles, which will facilitate savings, reduce fuel consumption, and promote a positive image of Philadelphia as an environmentally-conscious City. I'd like to read an opening statement prior to our taking testimony. We're all aware that in light of world events, natural disasters and high demand for oil, oil prices have risen to record highs, adding new financial burdens to cities nationwide. In response, a significant number of 3 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 cities and towns have implemented fleet management policies to replace conventional vehicles with hybrid-electric or alternative-fuel vehicles. Currently Philadelphia's fleet consists of approximately 6,000 conventional vehicles that use more than 4.6 million gallons of gasoline and diesel fuel each year. Recently the Office of Fleet Management purchased six hybrid sedans as part of a federally-funded program. While this introduction is a good start, the City is far behind cities like New York and Los Angeles, with 800 and 575 hybrids respectfully. As technology has advanced, hybrids have surpassed conventional vehicles on multiple levels. Hybrids have excellent warranties, lower projected maintenance costs, as much as 50 percent lower fuel costs and are far more environmentally friendly. For these 4 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 reasons, I believe that a policy should be adopted by the Office of Fleet Management that would give a purchasing preference to hybrid vehicles. Since April 1993, the Office of Fleet Management's central responsibilities have included the acquisition, assignment and maintenance of City vehicles and pieces of equipment at the lowest long-term cost of Philadelphia taxpayers. Therefore, I am asking that the City move beyond the introduction of hybrids to a solid policy that incorporates the purchasing of hybrid vehicles. I thank everyone present for their support and attendance. Hopefully this hearing will mark the beginning of a new approach and an improved image as a fiscally-responsible and environmentally-conscious City. I'd like to thank Councilman Wilson Goode and Councilman Marian Tasco for their attendance, and I'd ask 5 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Mr. Muller from Fleet Management to please approach the witness table, identify himself for the record and proceed. Prior to that, if there's any comments from any members of the Committee. (No response.)
James Muller, Fleet Management, Director of Fleet Management for the City of Philadelphia.
Good afternoon, Councilman Kenney, Chairpersons and honorable members of the Legislative 6 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Oversight Committee. Thank you for the opportunity to testify on the subject of hybrid vehicles. My name is James Muller, Director of the Office of Fleet Management for the City of Philadelphia. I am pleased to submit testimony on the City's use of hybrid vehicles. The Administration and the Office of Fleet Management are committed to finding cost-effective ways of meeting our City's transportation needs. The recent Fleet Reduction Initiative, which cut the City's fleet by 329 vehicles, and the partnership with PhillyCarShare are examples of this commitment in action. 3 million annually. We have also historically worked proactively to secure low rates for fuel. In the last three fiscal years, the City saved over 2 million by contracting with vendors for fixed fuel prices. 7 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 The recent drastic increase of fuel prices requires us to continue on this trend of finding creative and dramatic ways of keeping our costs down. Like many individual vehicle owners, we have turned to hybrid vehicles. This fiscal year, at the direction of Mayor John F. Street and the Managing Director of Pedro A. Ramos, the Office of Fleet Management started a Hybrid Vehicle Analysis Initiative to introduce hybrid vehicles into the City's fleet, test the performance of these hybrid vehicles, measure the maintenance and fuel costs of hybrid vehicles and compare the performance of costs to regular vehicles. The City has six hybrid sedans that were purchased as part of a federally-funded grant program and assigned to the Air Management Division of the Health Department. Until recently, manufacturers were only building hybrid sedans. Now they have 8 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 included mission-sensitive vehicles, such as sports utility vehicles and pick-up trucks. Two weeks ago, Fleet Management purchased a Ford Escape Sports Utility Vehicle hybrid for the Mayor. We are expecting to purchase an additional 8 new vehicles for various departments. 9 The new Escape hybrid has a 10 full hybrid system that enables it to run 11 on gasoline engine, electric-powered 12 battery or both together. On average, 13 the purchase price for hybrid vehicles is 14 4,000 higher than standard vehicles. 15 Most trade journals suggest a 16 cost-benefit analysis, measuring price 17 against fuel savings. 18 As part of the Hybrid Vehicle 19 Analysis Initiative, Fleet is carefully 20 tracking the maintenance and fuel costs of these vehicles. Work orders are filed detailing the types of repairs in order to provide the data needed to evaluate the effect of hybrid fuel on vehicle's major components, such as the power tran, 9 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 engine trans and rears. To date, our analysis has shown that the maintenance costs of hybrids are practically equal to those of regular vehicles and that the hybrid fuel costs are running approximately 35 percent lower. The importance of this information is that the purchase price of hybrids is higher than standard vehicles, requiring that fuel costs be significantly lower and the maintenance costs be comparable or lower in order to make the use of hybrids cost effective. The advantage of using a hybrid for City driving is that the vehicle is only powered by a combustible engine fueled by unleaded gasoline when you accelerate and the vehicle exceeds approximately 20 miles per hour. The hybrid vehicle includes an extensive warranty program covering everything but brakes and oil, and usually for more than the industry average standard vehicle warranties. 10 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Finally, Fleet Management is also committed to the use of hybrids because of their environmental benefits. Helping to reduce carbon monoxide is reason alone to try hybrids.
When inhaled, carbon monoxide combines with our hemoglobin in our blood, impairing the flow of oxygen to our brain and other parts of our body. Carbon monoxide is colorless, odorless and poisonous even to healthy people. Exposure to carbon monoxide can seriously affect people with heart disease and can affect the central nervous system. Motor vehicles remain the number one source of carbon monoxide pollution in many countries. According to the Federal Government, Philadelphia has become a non-containment zone, and anything this City can do to reduce pollution is important. Thank you for the opportunity to provide the Department's testimony on Resolution No. 050837. I would be happy 11 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 to answer any questions at this time.
Thank you, Mr. Muller. When did the City purchase the six vehicles that we currently have?
And the analysis based on the viability and savings both on fuel and maintenance are on these six vehicles?
Yes, compared to a standard vehicle. That's what's on the sheet.
Do we have connections or contacts with fleet managers, fleet management people in New York or other cities?
Considering 12 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 the fact that they have had a larger number of these vehicles, is the cost-benefit analysis they probably have done available to us or is it -- they wouldn't view that, I think, as proprietary, would they?
Could we ask those two cities and any other cities that may have that what their experience is? Rather than kind of wait and see what happens on the analysis of the six vehicles, perhaps we could get a wider scope of analysis from other cities to kind of move this a little quicker.
Also, as far as your knowledge on hybrids, in the event that gasoline prices would drastically reduce, there's no 25 prohibition on going back to full 13 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 gasoline use, not that it would be environmentally sensible, but from a cost perspective? How is the vehicle fueled? As far as I know, obviously gasoline is placed in the traditional tank. How are the other elements that drive the car or power the car fueled? Are they plugged in like golf carts, or how do they --
Every time you let your foot off the gas/accelerator pedal, the batteries are recharging.
So there's no need to have to plug them in in any way?
Why don't you for the record explain the actual operation of the engine that you might be aware of, as far as how it works.
Okay. On the Escape, the Ford Escape is what they call the first --
It's a new 14 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 generation.
New generation of technology. And what happens is, when you start the vehicle up, as long as you're starting the vehicle and there's no air conditioning or any accessories on, the engine is running on electric. As you step on the accelerator for more power, the gasoline engine kicks in, and what starts happening is, the gasoline engine now is recharging the electric batteries from the electric that you just used.
So the only two methods of fueling in this particular hybrid that you're talking about is gasoline and electricity?
So the use of other types of fuel, ethanol, other types of fuel, is not part of this capability of this --
Not of this hybrid right now, no, the one we're looking at. 15 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
The new generation of hybrids that you're talking about now is obviously different than the six we have; is that correct?
How are they different? What's the difference in the operation?
I believe now the engines are lower horsepower engines, and I believe that they're getting more miles per gallon of fuel. I think the Toyota Prius is up to about 50 or 60 miles to a gallon of gas.
What do you believe would be detrimental or a detriment to the City's considering a preference in the purchase of new vehicles, ensuring that the new vehicles purchased are hybrids? What would be the detraction or detracting factors?
Well, I see the emissions alone is a big standard, I think, for the City of Philadelphia. 16 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
No, no. 3 I'm saying what would be the negative arguments in purchasing or having preference for the purchase of hybrids?
Well, the price, the purchase price for one, and the other thing is that the mission of certain departments wouldn't require a car. You would need a pick-up truck. And just recently now they're starting to get into that field of what I just described as mission statement vehicles.
How many departments do you believe with what exist now, with what could be purchased today, how many departments would you believe could be served, just off the top of your head as far as --
I believe every department could probably use a few in certain areas. I don't know exactly how many that would be, but I'm pretty sure we could use them.
Would it 17 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 seem to you reasonable to suggest that even though there's a purchase price difference, that the fuel savings, the savings on maintenance and the savings to the health of the citizenry and the workers would probably, without a specific analysis, probably outweigh the purchase price? Is that a fair assertion?
It's close. It's close. I mean, we fortunately have been very lucky in locking into fuel contracts with Sunoco and we're not paying $3 a gallon for gas. And so, I mean, that alone is helping us to save money. But I understand what you're saying. I mean, it's a new technology, and I really believe that whether you like it or not, this is coming, and you either get on board or you're not going to get anything.
When is the contract for the fuel purchase, when is it up? 18 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
It was just renewed, so it will be good for, I believe, another nine or ten months.
I'm saying a big differential from retail at gas pump prices.
Would you think that there would be a problem with creating a policy of preference for the purchase of vehicles that's available now with the types and models that are available for purchase?
No. I just think 19 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 if the department could use them, I think they would use them.
Right now with the current budgeting, we're probably in the area of about 100 for the general budget.
So 100 a year on average, considering our economic situation right now. How many of those would fit into a hybrid model of the hundred?
So that's a pretty sizable number and I would think a pretty sizable savings.
Because even though our gasoline prices with Sunoco are lower and we've crafted a good deal, it's still less than gasoline we're using in the hybrid at a lower price.
There would be no downside vis-a-vis our gas contract with purchasing 30 to 35 hybrids in a year.
I really believe you could use these for unmarked detective cars, but I doubt very much you would use them for patrol.
Well, yeah. That's what I see, and that every time you jump on the vehicle, as I say, accelerate, then you're not really gaining anything.
But even though most of our patrol vehicles are street; they're not on highway patrol?
Right. As long as they're on the street and running normal patrols, they should be fine, but as soon as you step on it, you're losing that advantage. I mean, you're still going to get fuel savings. 21 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
I guess you have to do an analysis on what the average number of high-speed chases there are in the City. We've been trying to get away from them because of civil liability issues.
With the Prius right now, I mean, to put two patrol officers in a Prius, I don't think that's really --
What would be the process in establishing a preferential policy for the City in the purchase of 30 to 35 a year based on the numbers that you're aware of from this year's budget?
So he can make the decision on whether or not this is a preferential policy?
I'm sorry. 22 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Was there anything you wanted to add?
This is Bob Fox, my Administrative Services Director. Bob is part of Fleet. As Bob said, most of the money that we have, we're buying basically medic units, police cars, EPWs, emergency patrol wagons, compactors. So we're really not buying --
The testimony was of the hundred vehicles we purchased, 35 would be probably eligible for hybrid type. So 65 or 70 vehicles that are not available to the hybrid, that's nothing we can do about that, but if the 30 or 35 are, shouldn't that be the policy of the City right now?
What you're looking at is that we have a limited dollar in our appropriations. If we need to purchase vehicles at affordable $5,000 increase in price, that's going to reduce the total number of vehicles that we can purchase. So that may play as to how 23 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 many we can purchase in comparison to what we could purchase.
So of the 35 or so that would fit the model, perhaps because of the increase in price, we may be down to or 22. 8
They're in the 18 process right now. The purchase order is 19 going through, and I believe -- I think 20 it's like about an eight- to a ten-month delivery time.
Within the past two weeks. 24 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
Must have been a good resolution. I never got that much response on a resolution since I've been here. Okay. So we're in the process of ordering 21.
Water, police, aviation, and the Mayor is using one and the Mayor's Security right now. We have a 2006.
Could you just hang around. We won't be really much longer. Just in case there's some questions that come up, we need some clarification on.
Thank you very much for your testimony. 25 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Glenn Schwartz, please. Please identify yourself for the record.
Glenn Schwartz. I'm the Chief Meteorologist at NBC10 in Philadelphia. Thank you for the opportunity to speak to the Council today. I've been asked by Councilman Kenney to testify not solely for my 32-plus years of experience as a meteorologist but also as an owner of two hybrid cars over the past few years. Now, it's amazing how many people think hybrid cars need to be plugged in to work. I was one of them. Yeah, I was one of them, too. I didn't learn about hybrids from a TV, radio or newspaper ad or word of mouth. It was just one article in a magazine. Even today, very few people that I talk to are aware of all the advantages and lack of drawbacks of hybrids. When I tell them the whole 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 story, they're shocked, and this includes very well-educated people that I work with at a TV station. Now, here's a little background about the hybrid cars, as partly what you heard before. They have gas engines, like all other cars, but they also have a sophisticated battery that charges when I'm driving the car. Specifically, they charge when I put on the brake to slow down. Now, the battery stores energy for use later on. The longer I drive the car on any one trip, the more fully charged the battery gets. After a good charge, I might be driving in the City and when I stop at a light, the engine actually goes off. You can hear it happening. Now you're sitting at the light and burning absolutely no gas and emitting absolutely no pollution. My car has a computer monitor that shows me when the battery is charging and, in a different mode, shows 27 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 me the gas mileage I'm getting at that instant. It also computes my mileage over each five-minute period of my trip, plus the total mileage for that tank. Now, I only get about 40 to 45 miles a gallon, only, since I take lots of small trips, which don't fully charge the battery. Hybrids do best in City driving when the car has been driving for about minutes or more. 12 The EPA figures for my Prius 13 are 51 miles a gallon highway and 60 14 miles a gallon City, but I wouldn't 15 expect them to do that well. That's some 16 sort of an overestimate. 17 It's not just about miles per 18 gallon. Other conventional cars get good 19 mileage, too. Hybrids are the cleanest 20 cars on the road, producing far less emissions than even the most fuel-efficient conventional car. Now, the pollution problems that we get generally fall in two areas: Ground level ozone and global warming. 28 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Ozone at the ground is most often a problem in the warm months, since sunlight and high temperatures combine with the car exhaust and other pollution sources. The higher the ozone concentration, the harder it is to breathe. Those most affected are children, the elderly and those with respiratory problems, such as asthma and chronic bronchitis. It can also harm healthy people who exercise, work or just spend a lot of time outdoors. Now, the worst ozone days are called "ozone action days," when we in the media urge sensitive groups to stay indoors as much as possible or for even healthy people to limit their outdoor activity. The number of ozone action days varies a lot from year to year, depending on how hot and sunny the summer is. Our worst year was 2002 when the Philadelphia area had 42 days that exceeded the EPA standards. Recent studies have shown that 29 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 the EPA standards may be too low, so they made them more stringent starting this year. The more cars we put on the roads and the more miles those cars go, the more ozone pollution there is. And we're not talking about the ozone hole here. That's a completely separate issue, since ozone has different effects near the ground and high up in the atmosphere. Now for the global warming effect.
Global warming is still a controversial issue, even more so after these couple of cold, snowy winters around here, but 2003 was recently declared the second warmest in the recorded history of the planet. So there's plenty of evidence it's going on. Cars release carbon dioxide, which is one of the top emissions that influence warming of the atmosphere. Hybrid cars release much less CO2 than conventional cars. 30 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Now, if we could somehow snap our fingers and give all vehicles hybrid technology, we would have few serious ground ozone problems, we would not need oil from the Middle East, and cars, buses and trucks would be only minor contributors to any potential global warming. I did not buy my hybrid just for its environmental uses. It's a nice, comfortable, affordable car that's plenty quick enough to accelerate on the dreaded Schuylkill Expressway. There's nothing special to do. I just drive like everyone else. In fact, I'll be trading in my other car, an SUV, for a hybrid SUV when a truly fuel-efficient one comes out. I feel that as a scientist in the public eye, I can help set an example for others and let them know about this amazing technology, and that's what your proposal would do as well. Thank you.
Thank you 31 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 for your testimony. Can I ask you a question relative to the operation of the vehicle? Do you notice, other than the fact that the engine will turn itself off, any change in operation from a normal vehicle, as far as speed or power or anything?
Well, my new car is a more powerful one than my old Prius. I have the same car, but it's a second-generation technology. The first generation did not have a tremendous amount of power. It had a very small engine. This one has not only a bigger engine, way more power than my older car, it's bigger than my other car and it gets better mileage than my other car. So this second generation of the technology has made this car as powerful as I would ever need. I can accelerate from a stop going onto the Schuylkill and merge into traffic as well as most any other cars. And when I was 32 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 test-driving a Toyota Hylander a couple months ago, what I found was that it actually has more power than the regular Hylander, because you've combined the gas and the battery when you want to accelerate. So it actually in some of these newer versions, like the Lexus and some of these other SUVs and the trucks, they're using them to get more power, and they're, in my opinion, compromising the fuel economy in order to get so much power. So power is not an issue if you pick the right car. You can add both together.
How about issues of maintenance? Do you find that it's cost comparative to other all-gasoline vehicles?
I have had no 21 problems. In my first hybrid vehicle, all the maintenance was paid for. It was all free, and I never needed anything. And now I would have to pay for the maintenance, except for the oil, for most 33 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 things, but I have not had the slightest problem. And the one concern that some people have expressed is about the battery, because the battery is very expensive if you have to replace it, but they're apparently not having problems with batteries, and they're warranteed for like seven years or more, and we're not having problems with them.
Like airbags. People steal airbags. They'll be stealing hybrid batteries.
Possibly. But it's in the trunk of my car and it's hidden, and 99.9 percent of the population would have no idea it was there.
Does it cause you any difficulty as far as trunk space is concerned? 34 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
It takes away a little bit, but this car, again, is a small car, but it's amazing how much room 5 it has and it does have a bigger trunk than my previous one. It does just fine. As a matter of fact, I took this car on our annual trip down South. We drive down to visit my wife's relatives down in Southern Alabama and Northwest Florida and we go to the beaches there. We drove the hybrid instead of my SUV, because it has enough room for the luggage, and we got about 50 miles a gallon going down there.
Thank you very much. Councilman O'Neill would like Mr. Muller to come back for a couple of questions, please. Councilman.
Mr. 35 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Muller, how are you?
Sorry I missed your testimony, but I have read it since I got here. I just wanted to put on the record, I think it was over a year ago I asked Fleet Management through you for a Ford Escape hybrid.
I know we have a different Managing Director, but I was told we were not buying them and that was the end of that. Since it's over a year old, I'd like to make my request on the record this time, and I thank you. I will get rid of my Ford Explorer in a heartbeat. But I have a more serious question. The City belongs to an organization in Washington called Public Technology Institute. We're very active with them. It's a local government 36 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 technology organization. Two of the areas that they focus on are energy and the environment. They're separate groups of city and county officials that work there. I happen to Chair the Board of Directors, and we get into a lot of discussion about different things. One of the things in the last six months that was brought to my attention was plug-in hybrids. You don't have to hear about this very long to know that this is, until hydrogen sells or something, this is where we should be in the interim. And there's a group in California that does it as citizens, do the conversions. They put bigger batteries in. And they've gotten the price of gas down to under a dollar a gallon, I believe. Go 70, 80, 90 miles on the plug-in. And it's a plug-in in your own garage, your own house current. Like the old electric vehicles, but more like the new hybrids, the gas picks up, but the 37 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 gas picks up at 90 miles or so. And it's just a tremendous benefit, both to the environment and to the consumer in terms of improvement. One of the things I've been asked to -- the fellow that told me about this is the head of Austin, Texas is -- I better say it a little differently. The publicly-held utility in Austin, Texas, he is the Executive Director, and he's been there for years and is really into all this stuff that's around the corner, you know, these areas. And he said there's a group in the country that is looking to get the big car makers to not cause people to lose their warranty when they do this modification but to produce them and to start producing them in a way that can be done with large government fleets, working with the local electric utility and the big auto makers and possibly some Federal Government incentives that would go along with that or state incentives. I had told him that 38 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 I thought between PECO Energy and Philadelphia's office, that we'd be thrilled to be involved in that when the time comes. I was a little taken aback because it was right around the time I had heard that we were not doing hybrids at all, except in the Health Department, as I remember, and that was not something for the general population. And so I just ask you, is that something you'd be interested in and I could hook you up with the people --
-- and get PECO connected to you? Because you're exactly what the -- and I think you're situated correctly now with your purchases and the direction you're going in to become part of this, and I think it's going to be amazing if plug-in hybrids become commonplace and easy to access.
That's the whole deal, because a lot of times what happens, when you start messing with the vehicles, you wind up voiding warranties because they don't want to back it. We have problems sometimes we just want to use our own oil instead of what they recommend. We have problems getting warranty.
Jim, are you aware of that plug-in hybrid that is out there?
No, I'm not, but I remember in 1976 we had electric cars in the City of Philadelphia. We had some Dodge vans and some Plymouth Horizons electric vehicles, and they were set up down underneath the Love Park parking 40 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 lot. I mean, just to show you where technology was back then. So it's constantly changing. And General Motors is supposed to be coming out with a fuel cell. I mean, this is technology that's going to be here, and you either jump on board or you're not going to get anything, because this is the technology that we're facing, especially with the cost of fuel. This is something that you really have to look at. You just can't deny it. It's here.
I'm going to get some information to you on plug-in hybrids and also for the Chairman.
At least Councilman Goode, who I know must be interested. He's here at the hearing. Thank you.
41 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Mr. Chairman, I have a couple of questions.
Please. Mr. Muller, do you want to remain. Councilwoman Reynolds Brown, please.
I've listened to a portion of your testimony upstairs, and if you covered this already, my apologies, and I don't have the benefit of reading your testimony in advance. I'm curious to know two things. One, are other cities in the country on track with this initiative? That was number one. And what is your future for the Department on this new initiative as well?
We're looking at 42 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 hybrid vehicles. There are some states that actually give you a reimbursement when you purchase hybrid vehicles, because people want to put them out there. The Federal Government wants to put them out there. New York City, which has a lot of problems with pollution, and California. I mean, they're really way into this a lot --
-- further than we are. I believe I just saw something in the paper a couple weeks ago about the Governor looking at changing our emission standards, making our emission standards as stringent as California's, which would be fantastic for the City. I mean, we'd have to change the technology of the type of vehicles we're purchasing because they wouldn't pay us the emissions if they lowered the standards.
So we have 43 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 six now, and is there the intention to increase that as we go forward?
Yes. As long as we have the money, yes. The whole thing is the money. The money is the whole thing.
The reimbursement comes from the Federal Government in the instances you just mentioned?
Right. But I don't think Pennsylvania is one of the states that gives you money back. I don't think so. Not yet, but it could possibly happen.
Councilwoman, Los Angeles has 800 and New York has 575.
We have six. Well, we actually two weeks ago 44 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 ordered 21.
Well, as far as Los Angeles and New York are, but I can probably find out.
I'm always curious to see where Philadelphia stacks in the top ten cities across the country when it comes to innovative, progressive initiatives like this.
I believe both of those cities just mentioned, the population is a lot bigger than ours and their fleet size, I think they have 16,000 vehicles just assigned to their Police Department in New York. We have 1,300.
Thank you 45 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 for your testimony. Thank you, Mr. Chairman.
Also, staff tells me that Los Angeles has a fleet of 7,000. We have a fleet of 6,000. They have 800 and we have six.
Thank you. Any other questions for Mr. Muller? (No response.)
Thank you. Brinda Shetty, Coordinator, Philadelphia Clean Cities, and then we'll have Eric Cheung.
My name is Brinda Shetty and I'm the Coordinator of Greater Philadelphia Clean Cities Program. I'm appearing today on behalf of Clean Cities, which is currently administered 46 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 by ECAP, which is the Energy Cooperative Association of Pennsylvania. S. Department of Energy's nationwide network of Clean Cities coalition. First I just wanted to give you a brief background on what Clean Cities is working on. The Department of Energy's Clean Cities Program is a community-based, voluntary program that provides a framework for local businesses and governments to work together as a coalition to reduce the nation's dependence on petroleum. Clean Cities provide a structure for coalitions to focus and coordinate the activities of hybrid vehicle, alternative-fuel vehicle, idle reduction technology, fuel blends and fuel economy proponents. It also provides a forum to develop partnerships, investigate opportunities for joint projects, leverage resources and 47 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 collaborate on public policy, just as we're doing here today, and we appreciate the opportunity to testify this afternoon. Clean Cities' testimony today focuses on the specific and important role that the hybrid vehicles can contribute to decreasing the nation's dependence on petroleum in the transportation sector, but please note that AFV, or alternative-fuel vehicles, such as compressed natural gas and biodiesel-fueled vehicles, are also a feasible option and should be taken into consideration in regard to the Fleet's purchasing policies. S. currently does is energy insecure. Philadelphia and all of America needs to reduce the amount of petroleum consumed. Hybrid technology is available today and can help reduce petroleum use immediately. 48 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Hybrids are an attractive option to improve air quality, especially in a non-attainment area such as Philadelphia. The petroleum we are using in our vehicles each day is literally making us sick. Motor vehicles release harmful pollutants through their tailpipes that are produced through the combustion of fossil fuels. In addition to causing smog, these pollutants have been determined to cause and aggravate existing respiratory diseases, including bronchitis, emphysema, pulmonary fibrosis and asthma in adults and children. Additionally, combustion of fossil fuels releases carbon dioxide and other greenhouse gases, contributing to the problem of global warming. A vehicle's greenhouse gas emissions are directly correlated to that vehicle's fuel economy. In other words, the more fuel that is used by the vehicle, the higher its emissions of greenhouse gases. 49 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Hybrids have lower emissions than the conventional vehicles, because an electric motor is used in tandem with the internal combustion engine, as was mentioned earlier. So the electric motor offsets normal engine use by capturing the kinetic energy that's usually lost through braking, and this is a technology called regenerative braking. Therefore, hybrids offer higher fuel economy and lower emissions, and because every little bit helps, your decision to purchase hybrid vehicles means that all of us, including our children and future generations, will breathe easier, and we thank you for that. Hybrid vehicles can average 40 to 70 miles per gallon of gasoline, depending on how and where they're driven. In some cases, this can represent a doubling of fuel economy relative to a conventional vehicle. When fuel economy is doubled, the amount spent on fuel is cut in half. Therefore, 50 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 although their retail price may exceed that of conventional vehicles, hybrids can offer cost savings over the lifetime of vehicle ownership.
Increased fuel economy can allow drivers to fuel less often and travel more miles on a tank of fuel than they would driving a conventional vehicle, and this is an added benefit that saves both time and money. Auto manufacturers are offering hybrid vehicles with performance, safety, and cost comparable to conventional vehicles because they know that these are three elements that are most important to consumers. Consumers have already responded by purchasing significant numbers of these vehicles, and more hybrid models are on the way in the next several years. Hybrid vehicles offer energy, security, environmental and economic benefits, and these benefits not only reduce the use of petroleum, save money 51 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 and promote a positive image of Philadelphia as an environmentally-conscious City, but they simply make sense. Clean Cities looks forward to working with the City of Philadelphia to incorporate hybrids into their fleets. And I believe that your assistant, Sarah Putnam, was kind enough to distribute some information to the Councilmembers, one concerning harnessing the power of advanced fleet vehicles, which also gives information from other cities and their cost analysis and also their emissions analyses, and the other item that was distributed was on hybrid electric vehicle cost calculator.
They already do have them. And I also have a list right here, because there was a question earlier of different cities in the country that are working on hybrid 52 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 vehicles, including Denver; Ann Arbor, Michigan; Arcadia, California; Arlington, Massachusetts; Fort Collins; Los Angeles; Madison, Wisconsin; Sacramento, California; and San Francisco. So there are many cities across the country that are working on this technology. So, Mr. Chairman, we applaud you, the Council's and the Governor's commitment to alternative fuel and hybrid technologies and urge you to enact this and similar resolutions as expediently as possible. Thank you again for this opportunity to testify.
Thank you for your testimony. Any questions? (No response.)
Thank you for coming in. Mr. Eric Cheung, please. Good afternoon. Please identify yourself for the record. 53 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
Yes. My name is Eric Cheung and I am a senior attorney at the Clean Air Council. Good afternoon, Councilman Kenney and other members of City Council. Thank you for the opportunity to present my testimony. I have to apologize in advance. There's a lot of other environmental groups, so there may be some redundancy in what I have to say, but hopefully it will just keep reiterating the point of why it's valuable to promote hybrid electric vehicles. Clean Air Council is a non-profit, environmental advocacy group dedicated to protecting everyone's right to breathe clean air. The Council has over 8,000 members throughout Pennsylvania and Delaware. Clean Air is heartened to see the City of Philadelphia demonstrate its interest in purchasing hybrid electric vehicles by passing this resolution. Given the high cost of transportation 54 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 fuel and the poor air quality in the Philadelphia region, taxpayer money ought to be spent responsibly. The announcement that the City is contemplating making hybrids a preference in vehicle purchasing decisions offers both definite health benefits and likely economic savings. Furthermore, hybrid electric vehicles will play a part in improving our nation's energy security by reducing petroleum consumption. Lastly, as a large consumer of such products, the City will increase demand for hybrid electrics, thereby encouraging car manufacturers to bring more types of hybrid vehicles in larger numbers to the market for all Pennsylvania residents. On-road vehicles are a significant source of the Philadelphia region's worst air pollutants. Exhaust from cars and trucks comprises roughly two-thirds of the carbon monoxide and 55 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 one-third of the pollutants that form ozone present in the air. Vehicle emissions also account for percent of 5 the especially dangerous fine 6 particulates or soot. S. EPA has determined 8 that the Philadelphia region fails to 9 meet the federal health standards for 10 both ozone and fine particulates. These 11 pollutants inhibit the ability of people 12 to breathe and exacerbate existing adverse respiratory symptoms. Hybrid electric vehicles are cleaner than their traditional counterparts because they can travel further on the same gallon of gasoline or diesel, and it is the burning of fuel that releases pollutants into the air. Another important benefit of driving fuel-efficient hybrid vehicles is the amount of money that can be saved over the life of the vehicle. The average federal fleet vehicle drives more than 12,000 miles a year, and by 56 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 switching to a hybrid electric car that is only, say, ten miles per gallon more fuel efficient, such a vehicle could save about 137 gallons of gas annually. 1 million in savings annually. In addition, Pennsylvania offers $500 rebates towards the purchase of new hybrid vehicles. Actually, the Councilwoman had asked earlier if the state does offer funding, and I talked to a representative at the Department of Environmental Protection, because the state has had this program called the Alternative Fuels Incentive Grants where it offers $500 rebates for hybrid purchases, if the City 57 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 could apply, and she said yes. So that's a $500 per vehicle rebate that is already available from the state, and that represents another 300 million in savings, assuming, again, all 6,000 vehicles were replaced. Also, because funding sounds like an issue of importance to you, I'm just going to go a little bit off my prepared testimony to also note that there is another big chunk of federal money that's available through the Delaware Valley Regional Planning Commission called CMAQ, Congestion Mitigation Air Quality. That money, I believe, could be used to help offset the purchase of new hybrid vehicles. I think SEPTA did the same thing when they purchased their hybrid diesel buses.
So that would be something done through the Planning Commission of Philadelphia, and that would help offset the additional cost of hybrids, because that's primarily your argument against 58 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 hybrid vehicles, is the fact that they're more expensive. If you have federal funding and potentially state funding which will offset that, then that basically defeats that argument. Of the million barrels of 8 petroleum America consumes each day, more 9 than 12 million are imported. For energy 10 security reasons, America needs to be 11 more fuel independent and not rely on 12 foreign sources of oil that could be 13 located in volatile regions of the world. 14 Improving fuel economy is an effective 15 and reasonable means of meeting this 16 goal, especially since two-thirds of all 17 oil consumed is for use in the 18 transportation sector. 19 The typical passenger car on 20 the road today is getting less than 25 miles per gallon. Given that the better hybrids get, at a minimum, 30 miles or more per gallon, moving towards these vehicles would result in significant fuel savings. 59 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 6 trillion vehicle miles traveled a year by cars, if everyone switched to a hybrid electric vehicle, about 700,000 barrels of oil a day could be saved, which is approximately 7 percent of the total oil imported. 8 Having the City of Philadelphia 9 be a buyer of hybrid electric automobiles 10 will improve the market for these 11 vehicles. Currently there are only eight 12 types available for sale, including SUVs 13 like the Ford Escape and the Toyota 14 Hylander. 6 percent of 16 the total vehicles purchased that year. 17 Greater variety of hybrid vehicle sizes and styles is needed to ensure mainstream acceptance. In addition, consumers often have to face long waits to purchase hybrids because the availability of such vehicles is limited. By contributing to the demand for these vehicles, the City of Philadelphia will encourage 60 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 manufacturers to offer more hybrid automobiles in a greater variety for sale. Greater demand will also result in production savings, thereby lowering the cost of such vehicles. Clean Air Council applauds the City for passing this resolution. It is in perfect position to lead by example and raise the profile of this emerging technology. Clean Air urges the City to take the next step and establish a policy of purchasing hybrid electric vehicles where feasible. Thank you.
Thank you very much for your testimony. Any questions for the witness? (No response.)
Seeing none, thank you very much for coming in and for your patience. We now call Clayton Lane. Good afternoon. Please identify yourself for the record. 61 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
Good afternoon, Councilman Kenney. Thank you for inviting me. My name is Clayton Lane. I am a Co-Founder and Board Chairperson of PhillyCarShare.
Thank you. PhillyCarShare is a non-profit organization that shares vehicles by the hour. Our dozens of Toyota Prius hybrid vehicles are shared by thousands of Philadelphia residents and hundreds of City of Philadelphia employees. I'm here today to relate our deep and broad experience with these vehicles to strongly support the City's consideration of investing more heavily in hybrid vehicles for City business. PhillyCarShare's experience shows that in a fleet context, hybrids are desirable for a variety of reasons, including cost savings, environmental benefits and leadership. 62 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 First, I wish to highlight that two classes of hybrids generally exist on the market, those designed to provide more power and those which strive for environmental friendliness. My comments today relate only to the latter, which I call green hybrids and which number only two or three models, including the Toyota Prius. First, cost savings, and this is very important. Green hybrids yield substantial cost savings. PhillyCarShare finds that among our variety of vehicle models, including wagons, sedans, pick-up trucks, the Prius, which at $22,000 has the highest sticker price in our fleet, yields the lowest overall cost of ownership. It has the lowest depreciation, modest maintenance requirements and low fuel costs. First, depreciation. Generally we think of fuel cost as the main savings of hybrids. I'd like to highlight that actually depreciation and maintenance 63 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 savings are much greater and are very important to countering any ideas and arguments about fuel savings not adding up. Depreciation is typically the largest cost of vehicle ownership. S. market, both in percentage terms and in actual dollars. It's a very well-made vehicle. At three years of age, PhillyCarShare's Priuses -- we now have about 30 -- are maintaining an impressive 70 percent of their purchase price after three years of age. Second, maintenance. Especially in a fleet context, maintenance is hugely important. In addition to requiring parts and direct labor, which are just the tip of the iceberg, maintenance requires substantial overhead, fleet management, their overhead and office space, and costly downtime. If ten percent of the vehicles 64 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 are out of service at any given time, the fleet has to be ten percent larger to accommodate all vehicular needs. PhillyCarShare has found that hybrid Priuses perform exceptionally well. Throughout three years with now 30-plus hybrids, I could count on one hand the number of mechanical breakdowns we've had with Priuses, which contrasts with the other vehicle models that we have in a favorable manner. Our biggest maintenance need has been the occasional flat tire, which has been very positive. Finally, fuel in terms of costs. While fuel comprises a relatively small part of vehicle ownership costs, green hybrids, of course, save fuel. EPA rates the Prius at 60 miles per gallon in the City and 51 miles per gallon on the highway. In practice, PhillyCarShare's thousands of members average roughly 45 miles per gallon, which is an impressive savings over typical vehicles. So between modest depreciation and 65 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 maintenance and fuel costs, green hybrids can yield substantial cost savings. I have two other parts about environmental benefits and leadership. Not only do green hybrids save fuel, they do even better at reducing harmful emissions by about 90 percent, according to EPA. Because the Prius is so clean, EPA created a new emissions category called Partial Zero-Emission vehicle in which the Prius is the only gas-powered vehicle to qualify. Finally, leadership. Hybrids are very popular, and for very good reason. City Council has an opportunity to lead the way with a powerful statement. The City's last innovative move with hybrids made international news.
As you know, the City of Philadelphia is first in the world to share hybrids with local residents in a major fleet reduction effort. This pioneering project with PhillyCarShare has helped reduce 330 municipal vehicles 66 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 and avoid costs of $1 to nearly $2 million per year. The news has been heard around the world in major publications from London, Miami to San Jose, and progressive cities of Berkeley and Portland, Oregon are second and third following Philadelphia's lead. Dozens of cities are looking to follow our lead now. Last Tuesday, Berkeley tried to get ahead of us when its City Council voted to update the City's fleet via one-time purchase of new hybrid vehicles, and as you know, Los Angeles and New York City both have hundreds. I encourage us to lead the way again and for City Council to establish a broad policy to convert much of the City's fleet to cost-saving, environmentally-friendly green vehicles. Thank you.
Thank you very much for your testimony. Are there any questions for 67 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 this witness? (No response.)
Thank you for coming in. I appreciate it. Mr. David Masur, please. Good afternoon. Please identify yourself for the record.
Thank you for having me today. My name is David Masur and I'm the Director for PennEnvironment. I want to thank you, Councilman and members of City Council, for having PennEnvironment testify today. PennEnvironment is a citizen-based non-profit and non-partisan environmental advocacy organization. We represent approximately 15,000 citizen members across the Commonwealth working to promote clean air, clean water and open space protection. Given the public health threat posed by air pollution in Philadelphia and the ability of cleaner, more efficient vehicles to drastically reduce 68 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 air pollution levels, PennEnvironment strongly supports action by City Council that will bring more alternative-fuel and hybrids vehicles to Philadelphia. We, therefore, strongly encourage Philadelphia City Council to direct the Office of Fleet Management to require a preference for the purchase of alternative-fuel and/or hybrid vehicles for the City's fleet. Air pollution is causing a public health crisis in Philadelphia County and across the Commonwealth. Here are a few facts to state how air pollution is affecting Pennsylvanians every day: Smog pollution is responsible for triggering over 370,000 asthma attacks annually in Pennsylvania, and the American Lung Association of Pennsylvania estimates that more than a million Pennsylvanians suffer from asthma and other respiratory ailments. Car pollution is also a major source of carcinogens, like benzene, and 69 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 global warming pollution, like carbon dioxide. Currently over half of Pennsylvania's counties, including Philadelphia, fail to comply with the Federal Clean Air Act because of high smog levels. The effects of this pollution affects more than just the public's health. It also affects our economy. It's estimated that Pennsylvania's economy loses more than $1 billion annually from costs associated with air pollution. This includes healthcare costs, work productivity and mortality rates in the Commonwealth. Furthermore, childhood asthma is responsible for 500,000 missed school days in Pennsylvania each year. A child with asthma in Pennsylvania will miss a full week of school each year due to this disease. Placing cleaner and more fuel-efficient vehicles on the road in Philadelphia will help to correct these 70 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 pollution problems in the City, which, in turn, will protect the public health and save Philadelphians and the City government money. And while consumers and businesses are slowly but surely making the move to alternative-fuel and hybrid vehicles, the City also has a critical role to play in getting more of these vehicles out of the showroom and onto Philadelphia's streets. PennEnvironment would ask that City Council and the City of Philadelphia require that all new purchased vehicles are clean cars, and the same for light trucks. This would help both cut air pollution in Philadelphia and drive the market for cleaner cars and trucks in the region, and, most importantly, it will save Philadelphia's residents money. As noted in Councilman Kenney's September 29th resolution, other cities like New York and Los Angeles have already instituted similar programs and are reaping the benefits. 71 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 But if City Council gets one thing out of my testimony today, I hope it's this: Besides protecting public health, clean cars will save the City and its taxpayers money. This is because alternative-fuel and hybrid vehicles go further on a gallon of gasoline. A recent study by NESCAUM, the Clean Air Association of the Northeast States, showed that for each clean car purchased, the owner can expect to save well over $100 per vehicle per year above and beyond the sticker price of the automobile. 20 per gallon. With current prices at the pump, the savings would clearly be much greater.
Rising gas prices made news headlines consistently throughout the summer, and most experts agree that even after the damage of Katrina and Rita is repaired, the underlying dynamics of 72 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 supply and demand will keep gas prices high. Consumers' and businesses' reaction to these prices can already be seen in the recent slowed demand for gas-guzzling SUVs and an increased demand for hybrids and other more fuel-efficient vehicles. The City's reaction should be no different. Increasing the percentage of alternative-fuel and hybrid vehicles in the City's fleet is a necessary step to help ease the financial pain of today's high gas prices. PennEnvironment believes that City Council can take further steps that will promote cleaner vehicles in order to reduce air pollution and protect the public health in Philadelphia. Specifically, this includes calling on Philadelphia's congressional delegation to support a federal fuel-efficiency standard of 40 miles per gallon for automobiles and light trucks sold in the United States. This will reduce our 73 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 dependence on foreign oil, save consumers money at the gas pump and stop pressure to drill in America's remaining wild places for fuel. Recent estimates show that the fuel that we import from the Persian Gulf and that would be made available from drilling in the Arctic National Wildlife Refuge is not equal to the amount saved by implementing a 40-mile-per-gallon standard. Secondly, we believe City Council should support the implementation of clean standards for diesel trucks, school buses and commuter buses in the region. While significant strides have been made in the last 30 years to reduce emissions from mobile sources, diesel trucks and buses emitted more soot and smog pollution in 1997 than they did in 1970 when the Clean Air Act was passed. A recent study showed that SEPTA's urban transit buses alone emitted an estimated 28 percent of the total smog-forming 74 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 nitrogen oxide emissions from mobile diesel sources in Philadelphia County. And, lastly, we would ask that City Council call upon Philadelphia's state Representatives and Senators to oppose efforts to roll back the state's clean cars program. As we speak, a proposal is speeding through the Pennsylvania legislature that will stop the state's environmental regulators from implementing state-wide clean car standards. The implementation of clean car standards at the state level will help make sure that cities like Philadelphia can have more choices and more affordability when it comes to having these vehicles in the Commonwealth's marketplace. We would ask that members of Philadelphia City Council and local residents call upon Philadelphia's state Representatives and state Senators and ask them to do everything in their power to oppose House Bill 2141, the 75 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Pennsylvania clean cars rollback. This legislation is currently scheduled for vote in the legislature as early as this afternoon. In closing, I would again say that cleaning up the City's fleet is an essential part of addressing Philadelphia's serious air pollution problem, and requiring the City to increase its purchases of alternative-fuel and hybrid vehicles would utilize available technology to make the City's fleet cleaner, protecting our public health and environment from air pollution and saving the City money at the gas pump. Thank you again for allowing me to testify today.
Thank you very much for your testimony. Any questions for this witness? (No response.)
Seeing none, we thank you for your attendance. 76 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Mike Ewall, please. Is there anyone else in the room besides Mr. Ewall that's interested in testifying on this resolution? (No response.)
He will be our last witness. Thank you. Good afternoon. Thanks for waiting and please identify yourself for the record.
Thank you. My name is Mike Ewall. I'm with ActionPA. City Councilmembers, thank you for the opportunity to address you about this resolution. My name is Mike Ewall and I'm the Founder and Director of both ActionPA and the Energy Justice Network, projects based in Northeast Philadelphia where we serve the needs of communities across Pennsylvania and beyond wherever they are threatened by polluting energy and waste facilities. We consider ourselves an environmental justice organization in that we pay close 77 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 attention to the fact that polluting industries tend to concentrate in low-income communities and communities of color. The issue of alternative fuels is a particular interest for us, as communities are increasingly being threatened by polluting industries that would manufacture these so-called alternative fuels. As an environmental justice organization, we cannot accept the concept of environmental equity, which essentially means poison people equally. Environmental justice really means stop poisoning people, and this requires that we seek out solutions that work for all communities so that the most vulnerable communities aren't plagued by new problems posing as someone else's solutions. Just as environmentally-sound materials management is governed by the concept of the three R's, reduce, reuse and recycle, in priority order, energy 78 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 management must be governed by the principles of conservation, efficiency and clean renewables, which we define to include wind and solar but not combustion sources. Of highest importance is to use less, then to use wisely and to have clean production of what is used as the last resort. I personally own a hybrid car. I have the Honda Civic hybrid. I've had it for a few years now. It averages about 42 miles per gallon, but as high as 55 if I'm actually not driving as fast as I usually do. I enthusiastically endorse any offers to expand the role of more efficient vehicles, and I'll point out that I'm one of the people that received a $500 grant from the state for the purchase of my hybrid. So that is a functional program. Promoting hybrid vehicles should be part of a comprehensive strategy that includes making 79 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Philadelphia more conducive to walking, biking, car sharing and wider use of mass transit. Weatherization and efficient use of heating fuels should also be part of this fuel conservation and efficiency strategy, since this would also reduce oil and gas consumption. In the world of alternative fuels, there are many pitfalls to avoid, as most of the solutions involve unacceptable environmental harm and discriminatory impacts on human communities. Resources that would be put into alternative fuels would be better applied to conservation and efficiency tactics like hybrids, which by reducing fuel use are both cleaner than any alternative fuel, they avoid the impact on communities that would be affected by the fuel production facilities and they make more of an impact per dollar spent. If the City decides to go forth with any sort of alternative-fuel vehicle 80 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 program, we strongly recommend that it be limited to the use of recycled vegetable oil or biodiesel made from such oils. The many alternative fuels worth avoiding are natural gas vehicles, which as we see from the liquified natural gas terminal that's currently planned for Philadelphia, gas prices having tripled in recent years as gas production has peaked in North America has created the need to start looking to other countries to import natural gas, and that's why these terminal proposals are coming before us. Natural gas prices are on an increase that is not likely to subside, just like oil prices are going up for good as oil is peaking globally.
Natural gas vehicles would be an unwise investment because it would basically bring us down a very expensive route that will necessitate wars and things to get that foreign supply of gas as well as oil. 81 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Coal-to-oil is another one that hits close to home. In Pennsylvania, we have the proposal for the nation's first coal-to-oil refinery, which would be located in Schuylkill County, exactly next door to a state prison where there are a lot of Philadelphians who are literally trapped there, unable to escape the pollution that they would be exposed to if that facility were built. I know they're promoting this as an ultra clean facility for producing diesel, yet the amounts of solid waste, about 900-some tons per day of solid waste, produced the longest amount of water use and would make it pretty dirty fuel indeed. Conventional oils is another one you can look out for. They say it's made from recycled vegetable oil, but 90 percent of it tends to be done by making it with soy. Soy is a crop that is -- about 87 percent of that crop is genetically engineered to be round-up 82 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 ready so they can spray 40 percent on average more pesticides, or technically herbicides, in the communities where they're growing these crops, and the University of Pittsburgh study showed just this past year that that pesticide they use is far more toxic than previously thought, and so the impacts of using this conventional biodiesel are also pretty damaging to the environment. Ethanol also shares some of the same problems as conventional biodiesel, because if you end up producing your liquid fuels from growing crops, you have a lot of energy put in with natural gas-based fertilizer. You have biorefineries that are proposed for communities, including several in Pennsylvania where folks are fighting them right now, and for good reason, with all the emissions that would come from these refineries and the large amount of power demanded by them. There are also plans for 83 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 trash-to-ethanol plants. There are some proposed here in Philadelphia and Chester in recent years that are kind of on the back burner now, but may come back at some point, and I would just caution you to look out for those as well. They would bring a whole other set of impacts to the community. There's also the nation's first pilot project for an anything-to-oil plant that is located here in Philadelphia at the Navy Base. The state Department of Environmental Protection doesn't seem to have any permits for them, though, and doesn't have any information on what they're actually releasing, yet they've test-processed many types of wastes and there's no 20 information available on where all the toxins in those waste streams actually end up. They just pretend it magically turns into a clean oil product. The last two things I'll caution about are electric vehicles. 84 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837 Hybrids are a great idea. They're an efficiency strategy. Plug-in hybrids are not a great idea until we make sure our electric supply is actually clean. S. and a new wave of new nuclear reactors that are also planned. Communities don't want to be faced with those, and we ought to wait until we get to a point where we reduce our electric demand and have a significant portion of that electricity supply from wind and solar before we think of putting cars on the grid. And the final thing I'll point out is hydrogen fuel cell vehicles. There are a lot of economic and technical hurdles before that. They're still a couple of decades away at least. The amount of energy that needs to be put in just to get the same amount of energy out is more than you get out. And there was 85 11/01/05 - LEGISLATIVE OVERSIGHT - RES.
050837 a book put out recently that I'm still reading that was put out by someone who worked for the Department of Energy under Clinton, and it very well documents the troubles with the hydrogen industry and how the whole vision of a hydrogen economy is not likely to come forth the way they expect it to and the fact that battery technology is likely to develop a lot faster and it will be better to, once the electric grid is clean, to put cars on the grid at that point, maybe 30 years from now, and not expect that hydrogen will be the way out there. So there's a lot more information that is, I believe, supplied in handouts on some of these technologies, and if you have any questions, I'd be glad to answer them. Thank you.
Thank you very much for your testimony. Any questions? (No response.) 86 11/01/05 - LEGISLATIVE OVERSIGHT - RES. 050837
Thank you for coming in. That will be our last witness. This Committee will take all this testimony under advisement and continue our pursuit of the City's policy in moving towards hybrid purchasing or hybrid preference for our fleet as we go forward. So we will probably have another hearing or some additional legislation coming in the future. I thank everyone for coming and thank people from Fleet Management for your testimony. This Committee is adjourned. (Legislative Oversight Committee adjourned at 3:20 p.m.) - - - 87 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on November 1, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)