U.S. Department of Labor Alternative Fuel Vehicle Acquisition Report for Fiscal Year 2002

Introduction:

This Department of Labor (DOL) Fleet Alternative Fuel Vehicle (AFV) Program Report for Fiscal Year 2002 provides the Department's data on the number of AFVs acquired in fiscal year 2002, and its planned acquisitions and projections for FY 2003 and FY 2004. 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 13149 (signed by the President in April 2000). The DOL goal is to meet or exceed the 75 percent AFV-acquisition requirement for light duty vehicles by acquiring additional AFVs and implementing the use of biodiesel fuel in our diesel vehicles.

Fleet Mission Requirements:

The DOL vehicle fleet is comprised of some agency owned and commercially leased vehicles. The majority of the DOL vehicles are leased from the General Services Administration (GSA). These vehicles are used to perform a variety of mission requirements related to improving workers' rights to safe and healthful working conditions, tracking changes in employment, prices, and other national economic measurements. In carrying out this mission the DOL administers a variety of Federal labor laws that strengthen free collective bargaining and advancing opportunities for profitable employment. The DOL has supported and participated in the federal government's alternative fuels program since its inception in 1992, and encourages its agencies to acquire vehicles for alternative fuel use.

Legislative Requirements:

The Energy Policy Act of 1992 (EPAct) requires that 75 percent of all covered light-duty vehicles acquired for Federal fleets in FY 1999 and beyond must be AFVs where the fleets have 20 or more vehicles, are capable of being centrally fueled, and are operated in a metropolitan statistical area with a population of more than 250,000 based on the 1980 census. Certain emergency, law enforcement, and national defense vehicles are exempt from these requirements. EPAct also sets a goal of using replacement fuels to displace at least 30 percent of the projected consumption of motor fuel in the United States annually by the year 2010.

The Energy Conservation and Reauthorization Act of 1998, amended EPAct to allow one alternative fuel vehicle acquisition credit for every 450 gallons of pure biodiesel fuel consumed in vehicles over 8,500 pounds gross vehicle weight rating. "Biodiesel credits" may fulfill up to 50 percent of an agency's EPAct requirements. The head of each Federal agency must also prepare and submit a report to Congress outlining the agency's AFV acquisitions and future plans to achieve these requirements annually.

Executive Order 13149 directs Federal agencies operating a fleet of 20 or more vehicles within the United States, to reduce their annual petroleum consumption at least 20 percent by the end of FY 2005, compared to FY 1999 levels. Use alternative fuels in AFVs more than 50 percent of the time, improve the average fuel economy of new light-duty petroleum-fueled vehicle acquisitions by one mpg by FY 2002 and 3 mpg by FY 2005, and using other fleet efficiency measures which should include biodiesel fuel.

The DOL Approach to Compliance with EPAct and EO 13149:

To achieve compliance with the legislative mandates of EPAct and EO 13149, the DOL goal is to acquire 75 percent of new light-duty vehicles as AFVs, and use alternative fuel in these vehicles a majority of the time. It will also acquire light-duty vehicles with a higher fuel economy of one mpg in FY 2002 and 3 mpg in FY 2005. The DOL will take advantage of a new surcharge program that will add $10 monthly to the cost of every vehicle leased through the General Services Administration (GSA) to help cover the higher incremental cost of many AFV models, compared to conventional vehicles. DOL also signed a Memorandum of Understanding with GSA to participate in the Federal Government's AFV User Program. The program provides AFV incremental cost for placement of AFVs in six selected cities, in order to increase alternative fuel use in the designated areas.

The DOL will take a more aggressive approach in reviewing the feasibility of using biodiesel fuel to further reduce petroleum consumption in diesel vehicles where B20 fuel is available. The use of B20 provides an immediate EPAct credit for fuel purchases and one EPAct credit for every 2,250 gallons of B20 used. The credits earned by purchasing biodiesel can be used to satisfy up to 50% of the alternative fuel vehicle purchase requirements of our fleet. Moreover, B20's higher cetane, flashpoint and increased lubricity mean excellent engine performance, safety and fuel economy. B20 cuts exhaust emissions, minimizing black smoke and odor, as well as cutting ground air pollutants and greenhouse gas emissions. It is nontoxic, biodegradable and safer to use than any other fuel.

DOL AFV Acquisitions for FY 2002:

Table 1 provides detailed information on the number and types of AFVs leased from the General Services Administration (GSA) by Departmental fleets in fiscal year 2002. The DOL fleet acquired 106 AFV credits and did not meet the fiscal year AFV acquisition requirements for Federal fleets set forth in EPAct. The 106 AFV credits represent 21 percent of the DOL's 2002 covered AFV vehicle acquisitions. The total number of vehicle acquisitions in 2002 was 854. Of these, 348 were exempt for being in fleets outside covered metropolitan statistical areas, or were law enforcement vehicles. These exemptions left 506 vehicles considered EPAct covered acquisitions for DOL fleets in fiscal year 2002. Of the 506 vehicles covered acquisitions, 106 were AFVs. Note:There were difficulties in obtaining accurate fleet inventory information and the number of acquisitions may be higher than the total number of vehicles reported.

Table 1:DOL Fiscal Year 2002 AFV Acquisitions

Table 2 provides fuel usage for Departmental fleets in fiscal year 2002. The information is incomplete due to difficulties that arose this year in accurately determining alternative fuel use. Most vehicles acquired by DOL and other federal fleets are leased from GSA, with all maintenance and fuel costs for the vehicle included in the lease. Federal fleets utilize a GSA credit card to pay for fuel. Unfortunately, product code standards are not uniform among fuel suppliers for alternative fuels, such as ethanol (E85), making it impossible for credit vendors to track and gauge the purchase of alternative fuels by Federal fleets. Natural gas, however, is predominantly dispensed at local utility owned fueling sites and fleets can track usage by contacting their local utility.

*Table 2: DOL Fuel Usage in Fiscal Year 2002

*Note:

1. Gasoline: The gallons listed only represent dedicated gasoline vehicles
2. Diesel: The total number of gallons listed may contain either diesel or bio-diesel fuel.
3. CNG or LPG dedicated vehicles: All of the gallons used could be either CNG or LPG.
4. Bi-fuel or flexible fuel vehicles: The gallons of fuel used may be gasoline or may be an alternative fuel.

DOL's Planned Fleet AFV Acquisitions for 2003 and 2004:

There continues to be difficulties in acquiring AFVs. Table 3 provides a projection for vehicle acquisitions in fiscal years 2003 and 2004. In fiscal year 2003, Departmental fleets plan to acquire 150 AFVs, which will significantly increase the percentage of AFVs in the fleet and improve AFV acquisition requirements of EPAct. Fiscal year 2004, projections are to acquire 195 AFVs. DOL expects to meet EPAct requirements for AFV acquisitions by fiscal year 2005. The DOL will also pursue the acquisition of electric and hybrid vehicles to our fleet. Although hybrid vehicles are not considered AFVs at this time, they are fuel efficient and emit up to 84% less smog forming emissions than are allowed under Federal guidelines.

FY 2003 and FY 2004 Table 3: Planned AFV Acquisitions

AFV Acquisition and Use Issues:

Federal agency fleets attempting to meet the requirements of the Energy Policy Act of 1992 continue to experience difficulty in the acquisition and use of AFVs. These issues include high incremental cost of certain AFV models, lack of available alternative fuel use data, poor distribution of information on available AFVs, difficulty ordering and receiving AFVs, and limited access to alternative fuel infrastructure and service in certain areas. More importantly, the lack of available alternative fuel use data, continues to hinder federal agencies compliance with the mandated reporting requirements.

The success of DOL fleets in acquiring AFVs depends in large part on funding the high incremental cost of many AFVs and specific appropriations to cover these costs. To help ensure that Departmental fleets have the funding needed to comply with the AFV acquisition mandates of EPAct, DOL and other federal agencies are working with the General Services Administration (GSA) to establish a monthly surcharge on all vehicles leased by federal fleets.

As detailed in this report, the DOL still has a lot of work ahead of us as we pursue the mandates required by the EO to demonstrate a decrease in gas powered vehicles and replace them with AFVs and use only alternate fuels when available. As in the past years, the availability of fuel data used to measure progress toward the use of alternative fuel and the reduction of petroleum fuels is incomplete and unreliable. This is a major concern to all federal agencies, but not within our power to resolve independently. The issue of fleet card data correctly identifying fuel type purchases at the pump and the inability to obtain full and accurate accounting of fuel use for GSA leased vehicles must be resolved.

The aforementioned issues, however, must be resolved to provide a full picture of fleet and fuel use in the coming years. The Department, in coordination with other federal agencies is preparing to enter into discussions with the major fuel suppliers to address this issue of no uniform product code for tracking alternative fuel sales.