December 2004

Section 303 of 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.

E.O. 13149 requires each Federal agency that operates 20 or more vehicles within the United States to reduce its annual petroleum consumption by at least 20 percent by FY 2005, compared to 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 includes two additional requirements in relation to the 20% petroleum reduction goal.  First, it requires that agencies use alternative fuel in their AFVs to meet a majority of the fuel requirements of those vehicles by FY 2005.  Second, agencies should increase the DOE/EPA 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.

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, consumed in vehicles of over 8,500 pounds gross vehicle weight rating.  These “biodiesel credits” may fulfill up to 50% of a Federal fleet’s EPAct acquisition requirements, and do not carry over into subsequent years.

Moreover, E.O. 13149 provides incentives for agencies to acquire and use dedicated AFVs.  Agencies receive 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 can also receive one credit for every 450 gallons of pure biodiesel use 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 future acquisition plans, beginning in FY 1999.  Federal agencies will submit compliance data using the web-based Federal Automotive Statistical Tool (FAST). 

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

To fulfill the requirements of the EPAct and E.O. 13149, the Department is implementing its Compliance Strategy for Executive Order 13149.  The Strategy is a detailed five-year plan, starting in FY 2002.  It was developed in conjunction with fleet data available in FY 2001 and individual agency compliance plans.  The Strategy specifies that DOL will meet its annual EPAct acquisition requirements by acquiring 75 percent of its new light-duty vehicle acquisitions as AFVs.  The Strategy also lays out a specific plan for the DOL fleets between FY 2002 and FY 2005 to meet the 20 percent petroleum consumption reduction goal as required by E.O. 13149.

The DOL Strategy outlines DOL’s commitment to fulfilling the requirements of the E.O.  Among other things, the Department has developed strategies to:   

·         Reduce its vehicle fleet’s annual petroleum consumption by 20% by the end of FY 2005, compared with FY 1999 petroleum consumption.

·         Use alternative fuels to meet a majority of fuel requirements for alternative fuel vehicles by the end of FY 2005.

·         Increase the average EPA fuel economy rating of passenger cars and light trucks acquired by at least 1 mile per gallon by the end of FY 2002 and at least 3 miles per gallon by the end of FY 2005, compared to FY 1999 acquisitions.

·         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. 

To accomplish the Strategy goals and ensure compliance with the requirements of the EPAct, DOL has discussed plans with the General Services Administration (GSA) to implement the Fleet Surcharge Program to help offset the incremental costs of AFVs.  The incremental cost of an AFV can reach to several thousand dollars, depending on the AFV type.  The Fleet Surcharge Program places a small surcharge on each DOL fleet vehicle leased from the GSA.  This is critical since 99% of the vehicles operated by DOL fleets are GSA-leased.  The funds from this program are placed in a separate account used to pay for the incremental costs of AFVs acquired by DOL each year.  DOL plans to launch this program in FY 2005 to help meet the AFV acquisition statutory requirements. 

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:  Albuquerque, Denver, Minneapolis/St. Paul, Salt Lake City, San Francisco and Space Coast Florida that were designated by GSA for the Six Cities Program, to increase alternative fuel use in the designated areas. 

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. 

DOL AFV Acquisitions for FY 2004:

Table 1 provides the number of FY 2004 AFV acquisitions.  The DOL fleet earned 93 AFV credits, but these acquisitions were not enough to meet the FY 2004 AFV acquisition requirements for Federal fleets set forth in the EPAct.  The 93 AFV credits represent 19 percent of DOL’s covered vehicle acquisitions for FY 2004.  Table 1 provides detailed information on the number and types of vehicles leased from GSA by DOL in FY 2004.  The total number of vehicle acquisitions in FY 2004 was 941.  Of these, 415 were exempt for being outside covered metropolitan statistical areas, or were law enforcement vehicles.  These exemptions left 526 vehicles considered EPAct covered acquisitions for DOL fleets in FY 2004. 

                                       Table 1:         DOL Fiscal Year 2004 Acquisitions

Category	Fuel Type	GSA Leased Acquisitions	Covered  Acquisitions
Sedans	Gasoline	259	197
	Ethanol/Gas	66	55
	CNG/Gas Dual	0	0
MD Van	Gasoline	122	67
	Diesel	0	0
MD Pickup	Gasoline	30	17
MD SUV	Gasoline	3	1
MD Other	Gasoline	12	7
LD Minivan	Gasoline	140	73
LD Minivan	E85	9	8
LD Van 4x2	Gasoline	42	22
LD SUV	Gasoline	160	37
	E85	8	6
LD Pickup	Gasoline	41	26
	E85	8	6
Bus	Diesel	28	2
Other	Gasoline	2	0
	Diesel	9	0
	CNG	2	2
TOTALS		941	526

 

Table 2 provides fuel usage for Departmental fleets in FY 2004.  The information is as accurate as possible due to the continued difficulties 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.   In order to pay for fuel, Federal fleets utilize a GSA Voyager credit card.  Unfortunately, product code standards are not uniform among vehicle fuel suppliers for alternative fuels, such as ethanol (E85), making it almost 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 Federal fleets can track usage by contacting their local utility.  GSA, in conjunction with other Federal agencies, has been meeting with the major fuel suppliers to address the issue of uniform product codes for tracking alternative fuel sales.   The solution to this issue continues to be a work in progress.  A workgroup committee was formed to tackle this problem and progress reports will be provided to Federal agencies as more information becomes available.

 

Table 2:          DOL Fuel Usage in Fiscal Year 2004

Fuel Type	Quantity	Natural Units
Gasoline*	4,679,275.46	Gallons
CNG**	288.62	Gallons @2,400 psi, 70 F
Diesel	635,063.17	Gallons
Biodiesel-B100	192.68	Gallons
Propane	492.28	Gallons
E85	5,878.28	Gallons
TOTALS	5,321,190.49	Gallons

                

*Includes gasoline and may include some alternative fuel use

                                      **CNG Dedicated fuel use only

 

DOL’s Planned Fleet AFV Acquisitions for 2005 and 2006:

Table 3 provides a projection for vehicle acquisitions in FY 2005 and 2006.  There continues to be difficulties in acquiring AFVs because of the high incremental costs.  In FY 2005, DOL plans to acquire at least 126 AFVs or more to increase the percentage of AFVs in the fleet and improve AFV acquisition requirements of EPAct.  FY 2006 projections will total at least 141 AFVs.  DOL will attempt to meet EPAct requirements for AFV acquisitions by FY 2005 by aggressively pursuing available options, including commercial leasing of electric and/or hybrid vehicles as part of the DOL fleet.  These types of vehicles are fuel-efficient and emit up to 84% less smog forming emissions than are allowed under Federal guidelines.   These types of vehicles also have a direct impact upon the 20% fuel reduction requirement of E.O. 13149.

                               FY 2005 and FY 2006

Table 3:                  Planned AFV Acquisitions

Vehicle Type	Fuel Type	FY 2005	FY 2006
Sedan/ St Wgn Midsize	E85	41	59
Sedan St Wgn Subcompact	CNG	1	1
Sedan St Wgn Compact	E85	22	12
MD Van	CNG	1	3
LD Minivan 4x4 and 4x2	E85	60	51
LD SUV 4x4	E85	0	7
LD Pickup 4x4 and 4x2	CNG	0	1
LD Pickup 4x2	E85	1	7
TOTALS		126	141

AFV Acquisition and Other Use Issues:

The success of DOL fleets in acquiring AFVs depends in large part on funding the higher 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 the EPAct, DOL and other Federal agencies are working with GSA to negotiate with vehicle manufacturers to increase the number of AFVs available to the Federal government at a reasonable cost. 

Additionally, the lack of infrastructure to support AFVs continues to be a concern.  When AFVs are purchased significant difficulties remain in locating fuel and maintenance repair sites.  This, along with the lack of funds to acquire the number of vehicles required in meeting the mandates of the EPAct and E.O. 13149 continue to cause slow progress in this area. 

An in-house issue that DOL addressed in FY 2004, is to replace the current paper-based data collection and reporting system with an online vehicle reporting system that will provide accurate and more efficient compilation of data.  We are currently deploying an in-house system that has the capability to link all fleet data throughout the agency and, in the future, interface with the Federal Automotive Statistical Tool (FAST).  The online system will significantly improve productivity, performance and timely access to 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 fuel vehicles, as well as the use of alternative fuels.  DOL agencies will continue to ensure the implementation of the strategies to meet the mandates required by the EPAct and E.O. 13149.

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