U.S. Department of Labor’s Alternative Fuel Vehicle Acquisition Report for Fiscal Year 2006

February 2007

Introduction:

 

This Department of Labor (DOL) Alternative Fuel Vehicle (AFV) Program Report for Fiscal Year (FY) 2006 presents DOL’s data on the number of AFVs acquired in FY 2006, and its planned acquisitions and projections for FY 2007 and FY 2008.  The report has been developed in accordance with the Energy Policy Act of 1992 (EPAct) (42 U.S.C. 13211-13219) as amended by the Energy Conservation Reauthorization Act of 1998 (Public Law 105-388) (ECRA); and Executive Order (EO) 13149, Greening the Government Through Federal Fleet and Transportation Efficiency (April 2000).

 

The EPAct requires that, beginning in FY 1999, and for each year thereafter, 75 percent of all covered vehicle acquisitions by Federal agencies must be AFVs.  E.O. 13149 set a goal for covered Federal agencies to reduce annual petroleum consumption by at least 20 percent by the end of FY 2005, requiring agencies to increase alternative fuel use in AFVs and increase the fuel economy of all light-duty vehicles acquired.  The DOL goal is to meet or exceed the 75 percent AFV acquisition requirement for light-duty vehicles by acquiring additional AFVs and using biodiesel fuel in its diesel vehicles.  DOL exceeded the EPAct 75 percent goal for FY 2006.

 

Legislative and Executive Order Requirements:

 

Section 303 of the EPAct (42 U.S.C. 13212) requires that 75 percent of all covered light-duty vehicles acquired by Federal fleets in FY 1999, and each year thereafter, must be AFVs.  The EPAct requirements apply to agency fleets of 20 or more light-duty vehicles (vehicles less than or equal to 8,500 pounds gross vehicle weight rating) that are “centrally fueled or capable of being centrally fueled,” and are primarily operated in Metropolitan Statistical Areas (MSAs) or Consolidated Metropolitan Statistical Areas (CMSAs) with populations of more than 250,000 according to 1980 census data.  Certain emergency, law enforcement, and national defense vehicles are exempt from these requirements.

 

The Energy Conservation Reauthorization Act of 1998 amended the EPAct to allow one AFV acquisition credit for every 450 gallons of pure biodiesel fuel or 2,250 gallons of B-20, a blend of 20 percent biodiesel with 80 percent petroleum diesel, that is  consumed in vehicles over 8,500 pounds gross vehicle weight rating.  These “biodiesel credits” may fill up to 50% of a Federal fleet’s EPAct acquisition requirements, but do not carry over into subsequent years.

 

E.O. 13149 required each Federal agency that operates 20 or more vehicles within the United States to reduce its entire annual petroleum consumption by at least 20 percent by FY 2005, compared with FY 1999 consumption levels.  Fleets may achieve the reductions through a combination of AFV acquisitions, increased alternative fuel use in AFVs, improved efficiency of non-AFV acquisitions, reductions in fleet sizes and vehicle miles traveled, and/or improvements in overall fleet operating efficiencies.

 

E.O. 13149 also levied two additional requirements with regard to the 20% petroleum reduction goal.  First, by FY 2005, it required that more than 50 percent of the fuel used in agency AFVs be alternative fuel.  Second, agencies must increase the average fuel economy rating of covered light-duty (non-AFV) vehicle acquisitions by 1 mile per gallon (mpg) by FY 2002 and 3 mpg by FY 2005, as compared to the FY 1999 baseline.

 

E.O. 13149 provided incentives for agencies to acquire and use dedicated AFVs.  Agencies received one additional AFV credit for each dedicated light-duty vehicle and for each zero emission vehicle of any size, three credits for each dedicated medium-duty vehicle, and four credits for each dedicated heavy-duty vehicle.  Agencies could also receive one credit for every 450 gallons of pure biodiesel used in diesel vehicles.

 

Section 310(b) of the EPAct requires the head of each Federal agency to prepare and submit an annual report to Congress outlining the agency’s AFV acquisitions and its plans for future acquisition.  Federal agencies are to submit compliance data using the General Services Administration’s, web-based Federal Automotive Statistical Tool. 

 

The DOL Approach to Compliance with the EPAct and EO 13149:

 

To meet the requirements of the EPAct and E.O. 13149, the Department is continuing to implement its Compliance Strategy for Executive Order 13149.  The Strategy is a detailed five-year plan, begun in FY 2002.  It was developed in conjunction with fleet data available in FY 2001 and individual DOL agency compliance plans.  The Strategy specifies that DOL will meet its annual EPAct requirements by requiring that a minimum of 75 percent of its new light-duty vehicle acquisitions be AFVs. 

 

The Department has issued amendments to the Strategy in the form of policy documents tasking agency heads to continue the Department’s acquisition of AFVs and redouble efforts to reduce petroleum consumption by the required 20%.  Although DOL has achieved significant progress with the acquisition and use of AFVs, the 20 percent petroleum reduction continues to be our greatest challenge.

 

Consequently, the Department plans to refocus efforts on the following goals and objectives already outlined in the Strategic Plan:

 

·        Increasing the use of alternative fuels in all AFVs, where possible and practical

·        Maintaining the required fuel economy improvement of 3 miles per gallon (mpg)

·        Continuing to educate and train drivers and fleet officials on the acquisition and use of alternative fuels

·        Increasing the use of DOL’s Automobile Use Tracking On-line System, an automated fleet management system that has the capability to track the use of alternative fuels and notify agencies throughout the fiscal year when they are not meeting the standard

·        Developing a DOL incentive awards program to reward agencies that increase their use of alternative fuels

·        Increasing the average EPA fuel economy rating of passenger cars and light trucks acquired by not less than 1 mile per gallon by the end of FY 2007, and not less than 3 miles per gallon by the end of FY 2008, compared to FY 1999 acquisitions.

·        Continuing to meet the requirements of Section 303 of the EPAct, that alternative fuel vehicles and vehicle reporting credits should cover at least 75% of light-duty vehicle acquisitions. 

 

DOL has tasked agencies to increase the use of biodiesel fuel by taking more aggressive and innovative approaches to further reduce petroleum consumption in diesel vehicles.  For example, Job Corps is coordinating with biodiesel fuel providers for onsite delivery of biodiesel to refuel some of its fleet vehicles.  The use of B-20 diesel blended fuel provides an immediate EPAct credit for fuel purchases and one EPAct credit for every 2,250 gallons of B-20 used.  The credits earned by purchasing biodiesel can be used to satisfy up to 50% of the alternative fuel vehicle purchase requirements of the DOL fleet. 

 

DOL AFV Acquisitions for FY 2006:

 

Table 1 shows the number and types of FY 2006 DOL vehicle acquisitions.  DOL acquired 747 vehicles, of which 388 were covered by EPAct and 400 were AFVs.  The 75% EPAct AFV acquisition goal was exceeded by 28 percent.  (400/388 * 100 = 103%)

 

                   Table 1:     DOL Fiscal Year 2006 Acquisitions

Category	Fuel Type	GSA Leased Acquisitions	Total AFVs	Covered by EPAct
Sedans	Gasoline	75		56
	E85	257	257	193
MD Trucks	Gasoline	114
	Diesel	7
	E85
LD Trucks (4x4)	Gasoline	64		25
	E85	36	36	12
LD Trucks (4x2)	Gasoline	50		33
	E85	107	107	69
HD Trucks	Gasoline	3
	Diesel
Buses	Diesel	30
	Gasoline	4
Ambulance	Gasoline
	E85
TOTALS		747	400	388

 

 

Table 2 shows the fuel usage for the DOL fleets in FY 2006.  Most vehicles acquired by DOL are leased from GSA, with all maintenance and fuel costs for the vehicle included in the lease.  In order to pay for fuel, the DOL fleets utilize the GSA Voyager credit card.  Unfortunately, alternative fuel product codes are not uniform among vehicle fuel suppliers, making it difficult to track and gauge the purchase of alternative fuels.

 

Natural gas, however, is predominantly dispensed at local utility-owned fueling sites and DOL fleets can track natural gas usage by contacting their local utility.

 

GSA, in conjunction with other Federal agencies, continues to meet with the major fuel suppliers to address the issue of uniform product codes for tracking alternative fuel sales.  A Federal workgroup committee continues to tackle the problem and progress reports will be provided to Federal agencies as more information becomes available.

 

                  Table 2:    DOL Fuel Use and Cost in FY 2006

Fuel Type	Gallons	Fuel Cost
Gasoline*	2,524,497	$6,332,226
Diesel	409,978	1,028,351
GSLE**	10,850	27,216
E85	6,325	15,866
Biodiesel	1,186	2,976
LPG	988	2,477
CNG	81	204
TOTALS	2,953,905	$7,409,316

                 *Includes gasoline and some alternative fuel use

               **Gasoline-fueled law enforcement vehicles

 

DOL’s Planned Fleet AFV Acquisitions for 2007 and 2008:

 

Table 3 provides a projection for vehicle acquisitions in FY 2007 and 2008.  DOL has placed vehicle orders for FY 2007 that will exceed the EPAct AFV acquisition requirement: of the 823 total vehicles ordered, 447 are covered by EPAct and 503 are AFVs.  As with FY 2006 orders, the number of AFVs ordered exceeds the total number of DOL vehicles covered by EPAct.  DOL will also pursue the feasibility of leasing several hybrid vehicles as part of the DOL fleet when they become available for lease from GSA.  If hybrids are not available from GSA, DOL will review the cost of commercially leasing these vehicles from the private sector.  There are several advantages in acquiring these types of vehicles: They are fuel-efficient and emit up to 84% less smog forming emissions than are permitted under Federal guidelines; and they will have a direct impact upon the 20% fuel reduction requirement specified in E.O. 13149.

 

                       Table 3:   FY 2007-2008 Planned AFV Acquisitions

Vehicle Type	Fuel Type	FY 2007	FY 2008
Sedans	E85	303	335
MD Trucks	E85	7	10
LD Trucks 4x4	E85	65	65
LD Trucks 4x2	E85	125	137
Other	E85	3	7
TOTALS		503	554

 

 

AFV Acquisition and Other Use Issues:

 

The lack of an AFV fueling infrastructure to support DOL AFVs continues to be a major concern.  When AFVs are leased, significant difficulties remain in locating fuel and maintenance repair sites in close proximity to large populations of DOL vehicle users.  DOL continued making improvements to its new in-house, on-line fleet data tracking system, AUTOS.  This system replaced various non-standardized systems and methods used by the different internal agencies within DOL.

 

An enhanced version of the new AUTOS system development was launched during FY 2006.  AUTOS provides more accurate and efficient compilation of data for all DOL agency fleets and is an additional tool for agencies to use in reviewing their fleet compliance progress.  In the future, the system will interface with the Federal Automotive Statistical Tool (FAST).  This online system will significantly improve productivity, performance and timely access to accurate data such as vehicle mileage, alternative fuel usage and maintenance costs.

 

Summary: 

 

DOL continues to strive to reduce the consumption of petroleum through improvements in fuel efficiency and the use of alternative fuels.  To improve its compliance posture under the Energy Policy Act and the accompanying Executive Order, DOL has implemented an internal policy establishing AFVs as the “vehicles of choice” for new acquisition and directing DOL agencies to select the smallest vehicles meeting mission requirements.  The policy also calls for DOL drivers to use alternative fuels and fuel blends, wherever it is possible and practical.

 

Guidance documents and policy statements have been issued to DOL agency heads asking for their continued support to achieve key targets of the EPAct.  The Department has contacted private sector stakeholders to investigate the feasibility of partnering with the Clean Cities Program, as well as other federal agencies, to bring alternative fueling stations to locations with high concentrations of AFVs.  DOL agencies will continue to ensure the implementation of various strategies to meet the mandates required by the EPAct.  Perhaps the greatest challenge is the requirement to increase the use of alternative fuels.   Notwithstanding this challenge, it is clear that, although the Department is making progress, much still needs to be done.