HomeMy WebLinkAbout~Master - approving contract with Chevron Renewable Energy Group to supply 99.9% biodiesel (B100) for use in City’s snowplow trucks, lease or purchase of REG’s 12,000-gallon biodiesel tank RESOLUTION NO. 22-500
RESOLUTION APPROVING CONTRACT WITH
CHEVRON RENEWABLE ENERGY GROUP
TO SUPPLY 99.9% BIODIESEL (11100) FOR USE IN
THE CITY'S SNOWPLOW TRUCKS AND THE LEASE
OR PURCHASE OF REG'S 12,000-GALLON BIODIESEL TANK
FOR THE CITY OF AMES,IOWA
WHEREAS, in 2019, the City Council approved a unique agreement with Renewable
Energy Group Inc. (REG) of Ames, to conduct a B100 biodiesel pilot project. The project's goal
is to reduce the carbon intensity of select City-owned diesel trucks by implementing new
technology to use 99.9%biodiesel (B 100) in lieu of petroleum diesel; and,
WHEREAS,the 13100 Pilot Project has used nearly 36,000 gallons of 13100 fuel in 12 City-
owned trucks, offsetting 352 metric tons of carbon from petroleum fuel. Therefore,the project data
has shown the use of B 100 in conjunction with the new technology to be a cost-effective way to
significantly reduce the City's carbon footprint; and,
WHEREAS, REG has proposed an extension to the current agreement of two years, until
September 9, 2024. The fuel tank would continue to be leased for $1 per year during that time.
However, the price for B 100 increases from a 5- cent discount to a price equal to the Des Moines
area Gross Rack Average price per gallon for#2 Ultra Low Sulfur Diesel, as published by the Iowa
DOT.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the contract with Chevron Renewable Energy Group to supply 99.9%biodiesel(B 100)for use
in the City's snowplow trucks and the lease or purchase of REG's 12,000-gallon biodiesel tank is
hereby approved.
ADOPTED THIS 131h day of September, 2022.
Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Junck
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 13th day of September, 2022.