May 21, 2021. The City of Loveland, Colorado, will begin constructing a new fuel island at the City Service Center at 200 N. Wilson Ave. on June 1. The City’s current fuel tanks, which are more than 30 years old, will be replaced, and a compressed natural gas (CNG) component will be added as a new, alternative fuel source for City vehicles.
A new CNG component will accommodate the heavy duty natural gas vehicles the City will be receiving, purchased through additional grant funding. As a fuel source, CNG offers significant advantages over diesel and gasoline. CNG fuel cost per gallon is about 50% less than diesel fuel (CNG $1.25 vs diesel $2.50). It also has numerous air quality and water quality benefits over diesel fuel, reducing greenhouse gas emissions. The gaseous fuel will also increase emergency resiliency during petroleum shortages due to natural disasters/weather emergencies. If diesel pumps go down or supplies run low, CNG provides a backup plan for certain City crews and outside agencies who assist with Loveland response/recovery.
As part of the shift to using more alternative fuel sources, the City will incrementally replace 44 heavy-duty diesel trucks with trucks that use CNG over the next 10 years through amortization. The fuel savings is approximately $1.6 million with a projected payback of 6.25 years.
The total project budget for the fuel island replacement, including the additional CNG infrastructure is approximately $2.5 million. The gas and diesel portion of the project is $1,262,500, and will be funded by the General Fund. The CNG infrastructure is funded by a $828,000 CDOT reimbursement grant, with matching funds coming from the Fleet fund and Solid Waste funds in the amount of $372,000.