0560223343HowtoUse.pdf

23343_How To Use 12/09/2024

How To Use and Frequently Asked Questions - Renewable Diesel (HDRD95B5)

Award 23343 - Ultra-Low Sulfur Diesel & Biodiesel Fuel (Renewable Diesel) (On-Road Use Only) (Statewide)

Authorized Users and Contractors of this Award are strongly encouraged to read the Contract Terms and Conditions in its entirety found within the Base Contract to gain an understanding of the requirements for this Award.

Below is a brief listing of Questions & Answers (Q&A’s) to facilitate the purchase of the Hydrogenation Derived Renewable Diesel (HDRD95B5) under this Award.

Question: Who is the OGS contact for this contract award?

Answer: The OGS contract manager is identified on the landing page of this Award.

https://online.ogs.ny.gov/purchase/spg/awards/0560223236CAN.HTM E-mail: Sandra.Fernandes@ogs.ny.gov

Question: What is Renewable Diesel?

Answer: Renewable Diesel is diesel fuel made from non-petroleum sources such as natural fats, vegetable oils and greases. It is processed to be chemically the same as petroleum diesel and also meets the petroleum diesel ASTM D975 specifications. Additionally, Renewable Diesel achieves greater greenhouse gases reductions and has lower nitrogen oxide emissions compared to petroleum diesel.

Question: What is Hydrogenation Derived Renewable Diesel (HDRD)?

Answer: Hydrogenation Derived Renewable Diesel (HDRD) means a renewable, combustible liquid fuel processed from agricultural vegetable oils or animal fats applying the thermal hydro treating process of hydrogenation that meets ASTM D975 for renewable diesel fuel blend stock for distillate fuel.

Question: What is HDRD95B5?

Answer: HDRD95B5 is where 95 is the percent concentration of Hydrogenation Derived Renewable

Diesel HDRD and 5 is the percent concentration of pure biodiesel by volume. For a fuel blend with volume percentages of 95% HDRD and 5% biodiesel, the name of the blended fuel will be HDRD95B5. In the HDRD/BIODIESEL blend, there is no ULSD fuel.

Question: I am an Authorized User (AU) who filed requirements for a different diesel fuel type (Regular 2D, Premium 2D, B5, B10 or B20; can I purchase HDRD95B5?

Answer: Yes, an Authorized User who filed requirements for a different diesel fuel type can purchase HDRD95B5. The total annual deliveries of HDRD95B5 shall not exceed 20% per Delivery Location ID of an Authorized User’s filed requirements as found on the Attachment 10 - Delivery Schedule – State Agencies and Attachment 11 – Delivery Schedule – Non-State Agencies.

Question: Is there a minimum order and discounts on the purchase of HDRD95B5?

Answer: The minimum delivery shall be 250 gallons at each delivery location (site) as determined by the delivery schedule. Please see Section 4.10 Minimum Order of the base contract for more details.

A contractor may provide a Volume Discount within a given County for all individual orders of 5,500 gallons or greater.

Question: Can renewable diesel be mixed with ULSD/Biodiesel?

Answer: Renewable Diesel can be mixed or blended with ULSD/Biodiesel. However, as Diesel fuel can experience microbial contamination, Authorized Users are cautioned that any blending or co-https://online.ogs.ny.gov/purchase/spg/awards/0560223236CAN.HTM mailto:Sandra.Fernandes@ogs.ny.gov mingling of different fuel types will need to be determined for acceptability in advance to ensure continued proper performance.

Question: How to obtain HDRD95B5 and its pricing?

Answer: For HDRD95B5, there are multiple contracts awarded per County. For contract Award 23343, there are two awardees, Global Montello Group and Sprague Operating Resources LLC supplying the HDRD95B5.

1. The Authorized User shall inquire of all awarded HDRD95B5 Contractors within the applicable County whether such Contractors are able to provide HDRD95B5 fuel and request a firm delivered price on an agreed date.

2. The price for HDRD95B5 shall be market price and shall be disclosed to and agreed upon in advance by Authorized User, and confirmed in writing.

3. The Authorized User shall review the responses from the Contractors who are able to provide HDRD95B5 and shall select the most practical and economical from the responses.

4. Authorized Users should determine whether or not any tank cleaning services are needed and make applicable arrangements for any services.

5. Authorized Users are reminded that Contractors must notify OGS Procurement Services of any new business created from Authorized Users’ requests for delivery within thirty (30) days after the first delivery is made so that OGS Procurement Services can capture these accounts. Authorized Users should ensure that the Contractors are providing this information to OGS Procurement Services.

Question: Are tank cleaning services required for HDRD95B5?

Answer: Tank cleaning services are optional for HDRD95B5, but highly encouraged due to contaminants that can build up over time. Authorized Users should determine whether or not any tank cleaning services are required when ordering HDRD for the first time and make applicable arrangements for any services. Please note, tank cleaning services are not part of the Award 23343.

Question: Can an Authorized User (AU) request for automatic replenishment/ deliveries of HDRD95B5?

Answer: There is no automatic delivery for HDRD95B5 as the Market Price is determined on the date of order and must be approved by the Authorized User.

Question: Does OGS post HDRD95B5 pricing?

Answer: The price for HDRD95B5 shall be market price and shall be disclosed to and agreed upon in advance by an Authorized User.

In order to provide a benchmark, OGS Procurement Services will post a weekly price provided by the awarded contractors for the awarded counties. The benchmark pricing will be updated every Thursday, and the applicable benchmark price will be effective as of the start of business on the following Friday.

Posted pricing may differ than the actual Market Price that is quoted/agreed upon by the Authorized User and Contractor for their delivery. Authorized Users are responsible for substantiating any Market Price. See section 4.3 Price for further details.

Link to HDRD95B5 Pricing: https://ogs.ny.gov/Diesel-Pricing (the last page of the weekly pricing;

PDF document).

https://ogs.ny.gov/Diesel-Pricing

Question: My facility has identified concerns with the usage of HDRD95B5, can we stop using it?

Answer: If an Authorized User identifies any concerns with the usage of HDRD at a participating facility, Authorized Users have the right to revert back to using the fuel they signed up for in the Delivery Schedule. Authorized Users should work with the vendor on any changes. In such a case, Authorized Users must also notify OGS Procurement Services. Authorized Users are to email the contract manager listed on the award website: https://ogs.ny.gov/Award-23343

Question: The contractor cannot supply HDRD95B5, what are the next steps?

Answer: If a Vendor is unable to provide HDRD in order to maintain uninterrupted access (e.g., inadequate fuel supply, compatibility issues, etc.), the Authorized User, if eligible, would make appropriate delivery arrangements utilizing Solicitation 23343 Ultra-Low Sulfur Diesel & Biodiesel Fuel (On- Road Use Only) during the interruption at no additional cost to the Vendor. Notification of such interruption(s) must be provided to Authorized Users upon immediate knowledge of the situation.

OGS requires simultaneous notification, as well as advanced notification of potential interruptions.

Question: How does an Authorized User obtain winter blends of HDRD?

Answer: Contractors are responsible for providing the applicable blend in order to meet the ASTM standards indicated in the contract. The blend may vary depending upon the month of anticipated use. Authorized Users need to coordinate with the Contractor on their delivery to ensure that any product/ applicable blend will still meet the low temperature requirements in the future, particularly during seasonal changes (i.e. fall to winter).

Further, an Authorized User must be aware of any HDRD fuel still within their tanks and make appropriate arrangements when having additional fuel delivered that will result in the proper specifications being met for the fuel in their tanks.

Question: Can an Authorized User, who has not filed requirements purchase HDRD95B5?

Answer: Yes, an Authorized User, who has not filed requirements for diesel can purchase HDRD95B5.

In the event that HDRD95B5 supplies are limited, the Contractor will prioritize deliveries of HDRD95B5 to Authorized Users as follows:

1. State Agencies appearing on the Delivery Schedule

2. State Agencies not appearing on the Delivery Schedule

3. Non-State Agencies appearing on the Delivery Schedule

4. Non-State Agencies not appearing on the Delivery Schedule

Question: Where can you find who has been awarded HDRD95B5?

Answer: Authorized Users can find notice of who is awarded HDRD beginning on page 9 at the following link: https://online.ogs.ny.gov/purchase/spg/pdfdocs/0560223343a.pdf

Note: all other terms and conditions are as per the base contract, Award 23343.

https://ogs.ny.gov/Award-23343 https://online.ogs.ny.gov/purchase/spg/pdfdocs/0560223343a.pdf