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State and Alternative Fuel Provider Rule

Alternative Compliance

The following documents and tools are now available for fleets interested in participating in the Alternative Compliance option. 

The Energy Policy Act (EPAct) State and Alternative Fuel Provider Rule requires certain fleets to acquire alternative fuel vehicles (AFVs). Compliance is required by state government and alternative fuel provider fleets that operate, lease, or control 50 or more light-duty vehicles (LDVs) within the United States. Vehicles that weigh less than 8,500 lb gross vehicle weight rating (GVWR) are considered LDVs. Of those 50 vehicles, at least 20 must be used primarily within a single Metropolitan Statistical Area (MSA)/Consolidated Metropolitan Statistical Area (CMSA) (opens new window to Metropolitan Statistical Areas Covered by EPAct).

In 1996, the U.S. Department of Energy (DOE) issued final rules that spell out responsibilities for state and alternative fuel provider fleets. The information provided here is for general overview. It is not a comprehensive review of the regulations. Fleet managers who believe their fleets are covered by this rule should review the preamble and final rulemaking of the Alternative Fuel Transportation Program in the Federal Register (PDF 326 KB).

The document above and the following documents are available as Adobe Acrobat PDFs. Download Adobe Reader

Who is covered?

To find out whether your fleet is covered under EPAct, start with the list of MSAs/CMSAs (opens new window to Metropolitan Statistical Areas Covered by EPAct) or answer a short series of questions in the Clean Fleet Guide. Then, click on the appropriate link below:

How do I comply with AFV acquisition requirements?

Covered fleets are required to acquire a certain percentage of AFVs each model year when adding new vehicles to their fleets. For the purpose of this rule, a model year equals September 1 through August 31. As of 2001, AFV acquisitions must be 75% of new LDVs for state fleets and 90% for alternative fuel providers. Purchase percentages do not apply to excluded vehicles (see below).

Fleets that are subject to AFV acquisition requirements may comply by acquiring new or used AFVs, purchasing credits from other covered fleets, or using credits they have earned. They may also purchase biodiesel fuel blends of 20% biodiesel or greater or acquire conventionally fueled vehicles and have them converted within four months of purchase. Exemptions are provided to fleets if the AFVs that meet their business needs are not available or if alternative fuel supplies are not available. Fleets seeking exemptions should consider the availability of biodiesel blends before submitting requests to DOE.

What vehicles are excluded from fleet requirements?

The following vehicles do not count toward a fleet's annual LDV count and are excluded from EPAct:

  • Emergency vehicles
  • Law enforcement vehicles
  • Nonroad vehicles
  • Vehicles parked at private residences when not in use
  • Vehicles used for evaluating or testing products of a motor vehicle manufacturer, including those owned or held by a university for research purposes.
  • Vehicles owned or held by a testing laboratory or other evaluation facility that are used solely for evaluating the vehicles' performance
  • Vehicles acquired and used for purposes that the U.S. Secretary of Defense says must be exempted for national security reasons

How do I report annual acquisition activity?

Covered fleets are required to report their acquisition activity to DOE no later than December 31 for each calendar year of the model year for which they are reporting. "Acquisition activity" includes newly acquired LDVs and AFVs, and biodiesel purchased for use.

Click on the link below to access the tools you need to submit an annual report.

How does credit trading work?

Covered fleets earn one vehicle credit for every light-duty AFV they acquire annually beyond their base vehicle acquisition requirements. Once they have satisfied their annual light-duty AFV acquisition requirements, covered fleets may also earn one credit for every heavy-duty AFV they acquire annually. Credits generated by vehicle acquisitions can be sold or banked for future use. Credit trading is allowed between fleets that need to buy or sell banked credits. Noncovered fleets cannot earn credits.

How can I earn credits for using biodiesel fuels?

Covered fleets can earn Biodiesel Fuel Use Credits to use toward 50% of their annual AFV acquisition requirements by purchasing and using biodiesel. A credit is given for each 450 gallons of pure biodiesel purchased for use in blends of 20% or higher. No credits are granted for the petroleum portion of biodiesel fuel blends, and biodiesel credits cannot be traded or banked.

  • Reporting Biodiesel Fuel Use Credits (PDF 199 KB)
  • Biodiesel Fuel Use Credit Interim Rule (PDF 60 KB)
  • Biodiesel Fuel Use Credit Final Rule (PDF 142 KB)
  • Biodiesel Handling and Use Guidelines (Second Edition) (PDF 1.5 MB)

Where can I acquire AFVs?

New AFVs: A number of original equipment manufacturers currently offer new light-duty AFVs, including passenger cars and trucks. To learn more about available AFVs, see the Alternative Fuels and Advanced Vehicles Data Center's (AFDC) Alternative Fuel Vehicles.

Used AFVs: Used AFVs can be a cost-effective means to meet EPAct requirements. Used AFVs count as new acquisitions as long as they are new to the covered state or fuel provider fleet. Fleets can post listings to buy or sell used AFVs on the Used AFV Bulletin Board (opens new window to Used AFV Bulletin Board Messages). For more information, visit Resale: Pre-Owned Alternative Fuel and Advanced Vehicles.

Resources

State and fuel provider fleet related resources are available, such as fact sheets outlining EPAct regulations, success stories on outstanding fleets, guidance documents on exemptions, and more.

For more information on the State and Alternative Fuel Provider Rule, e-mail regulatory_info@afdc.nrel.gov, or call the Regulatory Information Line at (202) 586-9171.

DOE Program Management (opens new window to Database Administration Section for DOE)
Database Administration (opens new window to Database Administration Section)