SParolisi James River PP308

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

RFP# 4051213-05 Natural Gas & Heating Fuel Oil Commodity Code 40512 & 40513 Department of General Services Division of Purchase and Supply 1111 E. Broad St, Bid Tab Room Richmond, Virginia 23219

Product Delivery: 

Product Delivery JRS will provide the State of Virginia, its Agencies, Departments, Colleges and Universities services that will meet the Commonwealth’s 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

Product Delivery: 

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

Delivery Technology: 

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

Delivery Technology: 

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

Delivery Reporting Recap: 

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 truck’s 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.

SWAM & SBE CERTIFIED: 

SWAM & SBE CERTIFIED SWAM Certification # 649287 SBE Certification #653856.

Pricing: 

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

Pricing: 

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

Pricing: 

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

Pricing: 

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%

Terms: 

Terms 1% EFT 5-Days

Support Group: 

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

Support Numbers: 

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

Step To Date:: 

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)  

Opportunities: 

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

Opportunities: 

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

Fixed Price Seminars: 

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!

Slide19: 

Biodiesel Blends The more biodiesel in the fuel, the more it acts like biodiesel …

Biodiesel and Global Warming: 

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)

Slide21: 

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 PAH’s) -50% Nox +5-7%

Slide22: 

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

The “Right” Blend – 20%: 

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

Biodiesel Fuel Quality: 

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.

Using Biodiesel: 

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.

Biodiesel Attributes: 

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

Biodiesel Use Checklist: 

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

Biodiesel Use Checklist: 

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

Slide29: 

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

Virginia B20 Customers: 

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

Reco Biodiesel, LLC: 

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

Bio-Diesel : 

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

Slide33: 

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