RFP 4051213-05 Natural Gas & Heating Fuel Oil Commodity Code 40512 & 40513

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RFP 4051213-05Natural Gas Heating Fuel
OilCommodity Code 40512 40513

• Department of General Services
• Division of Purchase and Supply
• 1111 E. Broad St, Bid Tab Room
• Richmond, Virginia 23219

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Product Delivery

• JRS will provide the State of Virginia, its
  Agencies, Departments, Colleges and Universities
  services that will meet the Commonwealths desire
  to take advantage of aggregated needs of state
  agencies in providing 2, 4, 5 and 6,
  BioDiesel.
• Services will include
• One source billing
• Small tank deliveries
• Large tank deliveries
• Bar coded tanks to insure proper capture of data
• Web based site for historical data on each
  agencies tanks
• Pricing options
• Fixed price
• Cap and Slide price
• Variable price

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Product Delivery

• TRANSPORT LOADS
• James River Solutions can provide Transport Loads
  to any facility in the Commonwealth for 2, 4,
  5, 6 and Kerosene
• TANKWAGON LOADS
• James River Solutions can provide Tankwagon Loads
  to any facility in the Commonwealth of 2, 4, 5
  and Kerosene
• We reserve the right to use partners in areas
  where needed
• Billing will be through James River Solutions,
  which will give the State one source for payment
  and any issues that may arise

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Delivery Technology

• James River Solutions using our Symbology
  Bar-coding technology will code each tank with
  its own unique barcode
• The barcode is read by a hand held fuel scanner
  that identifies the tank and type of fuel
  required, thus preventing fueling into wrong
  tank.
• This technology also provides accurate reporting
  on each tank and captures historical data for
  later use.
• We will provide historical data on a quarterly
  basis to DGS that meet DEQ Requirements
• Reports can be automatically downloaded to the
  state agencies back office system

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Delivery Technology

• JRS working with the State can analyze historical
  data provided by the Symboloy system for delivery
  efficiencies
• This data will help determine if proper tank
  sizes are in place
• We can determine economic delivery schedules and
  best transportation modes

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Delivery Reporting Recap

• Paperless system from the fueling process through
  the invoicing process
• Itemized ticket will show how many delivered
  gallons per each barcode or tank 
• Barcode technology to identify each generator or
  tank which prevents the driver from being able to
  pump the wrong product into a truck or tank 
• Time out feature ensures that the customer is
  getting the product that is on their ticket
  and on their bill!  
• Pump accuracy  should be  guaranteed as Symbology
  is a redundant system that must agree to the
  trucks totalizer 
• Fueling data  will be automatically  downloaded
  from the handheld scanners into our invoicing and
  accounting systems and available for viewing on
  line or via reports 
• Fueling  history is maintained by day and time
  for as long as the customer wants at the minimum
  for three years plus current year 
• Consolidated reporting for all agencies.  You can
  sort per location, tank, state agency or body and
  per date.

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SWAM SBE CERTIFIED

• SWAM Certification 649287
• SBE Certification 653856.

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Pricing

• Fixed Price Option
• Fixed pricing contracts can be purchased using
  the futures market, pricing will be based on
  NYMEX
• Pricing can be fixed on a monthly basis
• Pricing will not increase over the fixed price
  enabling the Commonwealth to better forecast
  budgets

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Pricing

• Cap and Slide Pricing
• James River Solutions can provide the
  Commonwealth with a fixed price cap that
  represents the highest price that the
  Commonwealth will pay during the locked in period
• When the market price falls below a preset level,
  the price to the Commonwealth will fall
• This option is good in a volatile market and
  allows the Commonwealth during the budget process
  to insure that fuel purchases will not exceed
  budget forecasts

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Pricing

• Standard Variable Pricing
• James River Solutions can provide the
  Commonwealth pricing that is based on the Oil
  Price Information Service (OPIS) wholesale rack
  pricing or a similar pricing structure
• Preset margin/freight will be added to the OPIS
  cost to determine daily delivered price
• Pricing will vary by delivery, with the only
  variable being wholesale rack cost

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Pricing

• Based on 2003, 2004 monthly consumption numbers
  the State purchases at the following consumptions
  rates
• 2003 2004
• 1st quarter 46 51
• 2nd quarter 16 14
• 3rd quarter 19 18
• 4th quarter 18 17

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Terms

• 1 EFT 5-Days

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Support Group

• Commonwealth of Virginia Support Team
• Darlene Harris Mgr. of Customer Service ext.
  318
• Courtney Munch Customer Service ext. - 311
• Betsy Bennett Customer Service ext. - 330
• Tracy Little Executive Support ext 312
• Bert Polk Operations Support ext. 310
• Emergency Number 804-393-1150

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Support Numbers

• 1-800-825-5599
• 1-804-358-9000
• For each of these numbers dial the extension you
  need or follow the prompts and leave a message
• 24/7 Emergency number
• 1-804-393-1150

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Step To Date

• Tanks have been identified per agency
• Verified tank sizes, locations, special
  instructions
• Tanks have been marked for delivery with their
  own unique barcode
• Determine delivery schedule for each tank
• Determine best delivery method
• Delivering Product via variable pricing and fixed
  pricing successfully in 2006.
• Website accessible for you to review your
  deliveries
• Go to www.jrpetro.com/sov.html
• User Name virginia (lowercase)
• Password jrp (lowercase)
•  

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Opportunities

• JRS has the ability to add alternative fuels such
  as Bio-Diesel
• Delivering Bio Diesel successfully throughout the
  Commonwealth.
• We will constantly look to improve our services
  and technology to support your needs
• Remote tank monitors operated by cell phone
  technology that monitors tank levels to insure
  critical delivery of fuel
• Underground veeder root monitors that allow JRS
  to monitor tank levels
• Consult and implement lower cost petroleum
  solutions where applicable

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Opportunities

• Conducted feasibility studies at several COV
  agencies and identified efficiencies and helped
  with DEQ related issues.
• Inform State on fuel oil market trends, that can
  help plan fuel purchases in order to help plan
  and forecast fuel purchases
• Implemented Fixed Pricing Strategies at several
  agencies
• We will constantly look to improve our services
  and technology to support your needs

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Fixed Price Seminars

• Fuel Oil Futures Market with Morgan Stanley and
  James River Solutions
• Informational Luncheon
• Wednesday, November 15, 2006
• Jefferson Hotel
• 101 West Franklin Street
• Richmond, VA. 23220
• RSVP TODAY!

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Biodiesel Blends
The more biodiesel in the fuel, the more it acts
like biodiesel
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Biodiesel and Global Warming

• Closed Carbon Cycle CO2 Absorbed During
  Photosynthesis is Released When Biodiesel is
  Burned.
• 78 Life Cycle Decrease In CO2
• Energy Balance 3.24 to 1
• BIO Fuel yields 3.24 units of fuel product for
  every unit of fossil energy consumed in the
  lifecycle
• 1998 US Dept of Energy (DOE) and US Dept of
  Agriculture (USDA)

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Biodiesel Environment

• Average reduction in emissions using B20 as
  compared to conventional diesel
• Total Unburned Hydrocarbons -20
• Carbon Monoxide -12
• Particulate Matter -12
• Sulfates -20
• PAH (Polycyclic Aromatic Hydrocarbons) -20
• Ozone potential of speciated HC -10
• nPAH (nitrated PAHs) -50
• Nox 5-7

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Biodiesel Environment

• Decreases EPA-targeted emissions CO, HC (smog),
  PM, sulfur dioxide (acid rain)
• Virtually free of sulfur aromatics
• Reduces cancer risk from PM by 94
• Will reduce smoke
• Both exhaust and fuel smell better
• Exhaust smell is compared to french fries

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The Right Blend 20

• 20 blend gives good emission benefits by
  reducing soot, particulates, hydrocarbons, carbon
  monoxide and carbon dioxide.
• 20 does not create major problems with filter
  plugging and deposit formation.
• 20 controls the increase in cloud and pour point
  by a manageable level that cold flow additives
  and kerosene blending allows..
• Biodiesel blends do not pose performance issues
• Recommended shelf life for bio-diesel is six
  months. Just like old petroleum diesel fuel, old
  bio-diesel can become acidic, forming sediments
  and varnish. Additives can prevent this problem

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Biodiesel Fuel Quality

• ASTM D-6751 provides the standards to ensure good
  fuel quality.
• Standard ensures that Biodiesel has the fuel
  properties for safe operation in a compression
  ignition engine and ensures that poor processing
  has not contaminated the fuel with other products
  that would create engine damage.

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Using Biodiesel

• Biodiesel blends operate in diesel engines, from
  light to heavy-duty, just like petroleum diesel.
• Once vehicles have been switched to bio-diesel,
  they can still use regular Diesel fuel without
  problems.
• B20 works in any diesel engine with few or no
  modifications to the engine or the fuel system
• B20 provides similar horsepower, torque, and
  mileage as diesel.

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Biodiesel Attributes

• A transparent alternative to diesel fuel
• High Cetane (avg. over 50)
• Clean burning, oxygenated fuel
• Ultra Low Sulfur (avg 2 ppm)
• Good detergent properties
• High Lubricity, even in blends as low at 1-2
• High Energy Balance (3.24 to 1)
• 78 Life Cycle C02 Reduction
• Renewable, Sustainable
• Domestically Produced
• Reduces HC, PM, CO in existing diesel engines

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Biodiesel Use Checklist

• Ensure the biodiesel meets the ASTM D 6751
  specification for pure biodiesel before blending
  with petrodiesel
• Ensure your B20 supplier provides a homogenous
  product
• Prior to transitioning to B20 it is recommended
  that storage tanks be cleaned and free from
  sediment and water
• Avoid long term storage of B20 to prevent fuel
  degradation

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Biodiesel Use Checklist

• Fuel filters on vehicles and in the dispenser may
  need to be changed more frequently upon initial
  B20 use (less than 2 of cases)
• After initial B20 conversion, vehicles can
  alternate between B20 and Diesel fuel without
  adverse affect
• Educate operators and stock spare filters
• With B20 the cold flow properties of the blend
  can be 3-10 degrees F higher than average No. 2
  diesel

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Biodiesel Users

• American Trucking Association Endorses B5
  
• U.S. Forest Service
• U.S. Postal Service
• U.S. Dept of Interior
• DelDOT, NJDOT
• Yellowstone Park
• U.S. Botanical Garden
• Choptank Electric
• Assateague Island
• USDA Beltsville ARS

• University of Virginia
• James Madison University
• Arlington County, VA
• City of Harrisonburg, VA
• Northumberland Co. Schools
• U.S. Navy
• U.S. farmers
• Minnesota/Washington has
• Mandated B2 in all diesel

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Virginia B20 Customers

• City of Newport News
• City of Falls Church
• City of Arlington
• Super Valu
• Navy
• Northumberland County
• Westmoreland County
• University of Virginia
• Chesterfield County
• College of William and Mary (test)
• City of Waynesboro
• GRTC Public Transport (Richmond)
• TFC Recycling

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Reco Biodiesel, LLC

• Reco Biodiesel is currently constructing a
  Biodiesel plant with an anticipated capacity 8 to
  10 million gallons per year of B100
• Reco Biodiesel is located at 710 Hospital Street
  in Shockoe Valley
• Production is scheduled to begin in the late 3rd
  quarter or early 4th quarter 2006
• Through the implementation of a rigorous quality
  control program, Reco Biodiesel will only sell
  Biodiesel that meets or exceeds the ASTM D 6751
  Specifications

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Bio-Diesel

• Lubricity issues involved with ULSD
• No expensive additives needed
• Average increase in Cetane of 2
• Stable pricing
• Biodiesel is less expensive in a rising market
  due to stable pricing and supply of B100
• Currently pricing of B20 is less than regular
  diesel
• No additional equipment is needed to switch to
  BioDiesel
• Reduced dependency on Foreign oil

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Biodiesel Resources

• National Biodiesel Board (NBB)
• Informational and technical resources, videos,
  database
• www.biodiesel.org
• 800-841-5849
• National Biodiesel Education Program
• Information, education, materials
• http//www.uidaho.edu/bioenergy