Item - 2018.PE24.4

The Parks and Environment Committee recommends that:

1.  City Council direct the Director, Fleet Services, and the Director, Purchasing and Materials Management, to report to the Parks and Environment Committee at its meeting on February 23, 2018, and prior to the issuance of the next Request for Proposals, with information regarding proposed criteria for any future tender on biodiesel for the City of Toronto's fleet.

In February 2017, the Parks and Environment Committee requested a report on the potential greenhouse gas reductions and costs associated with the City switching to the use of different diesel fuels on appropriate vehicles. Staff were also requested to monitor opportunities to utilize funding expected as part of implementation of Ontario's Climate Change Action Plan.

The existing contract for the procurement of fuel for City fleet vehicles currently has provisions that allow the vendor to increase the supply of bio-diesel or other alternative fuels at the City's request. Currently, as required under Provincial legislation, the diesel fuel provided to the City is 4 percent renewable diesel.

There are a number of options, both short term and long term, for reducing emissions from the City's fleet vehicles. The City, through implementation of the Green Fleet Plan (first adopted in 2004), has been exploring and implementing a range of these options. With the adoption of TransformTO in July 2017 and the target to transition 45 percent of the City-owned fleet to low-carbon vehicles by 2030, the City is looking to accelerate these efforts.

Moving towards increased use of bio-diesel or renewable diesel is one option available to the City, but it is recommended that a thorough evaluation be made of emissions, supply, costs and benefits of bio-diesel and renewable diesel in comparison to other fuel options, such as natural gas and electricity, before moving forward. The City, in partnership with the University of Toronto Transportation Research Institute, is currently conducting this analysis. Staff will report the results to City Council following its completion and will make recommendations for action as part to the ongoing review and updates to the City's Green Fleet Plan.