Introduction:

This Department of Labor (DOL) Alternative Fuel Vehicle (AFV) Acquisition Report for Fiscal Year (FY) 2007 presents DOL’s data on the number of AFVs acquired in FY 2007, and its planned acquisitions and projections for FY 2008 and FY 2009.  The report has been developed in accordance with the Energy Policy Act (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) 13423, Strengthening Federal Environmental, Energy, and Transportation Management (January 2007), which revokes E.O. 13149, Greening the Government Through Federal 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. 13423 set a goal for covered Federal agencies to decrease petroleum consumption by 2% per year relative to their

FY 2005 baseline through FY 2015.  The E.O. also requires Federal agencies to increase alternative fuel use by 10% per year relative to the previous year.

The DOL goal is to meet or exceed the 75 percent AFV EPAct 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 2007.

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 (B100) 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 and they cannot be traded among fleets.

E.O. 13423 requires each Federal agency that operates 20 or more vehicles within the United States to reduce petroleum consumption in fleet vehicles by 2% annually through 2015, increase purchase of non-petroleum-based fuel by 10% annually, and use plug-in hybrid (PIH) vehicles when commercially available at a life-cycle cost reasonably comparable to non-PIH vehicles.  Fleets may achieve the petroleum consumption reductions through a combination of increased use of non-petroleum-based fuel in AFVs, improved efficiency of non-AFV acquisitions, reductions in fleet sizes and vehicle miles traveled, and/or improvements in overall fleet operating efficiencies.

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 (FAST). 

The DOL Approach to Compliance with the EPAct and EO 13423:

To meet the requirements of the EPAct and E.O. 13423, the Department is continuing to implement its Compliance Strategy, developed in compliance with the previous E.O. 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 FY 2002 Strategy will be updated to include any new E.O. 13423 requirements. 

The Department continues to issue amendments to the Strategy in the form of policy documents and memoranda to DOL agency heads asking them to continue the Department’s acquisition of AFVs, redouble efforts to decrease petroleum consumption by the required 2% per year and increase non-petroleum-based fuel usage by 10%.  Although DOL has achieved significant progress with the acquisition and use of AFVs, petroleum reduction continues to be our greatest challenge.

Consequently, the Department plans to continue focusing efforts on the following goals and objectives that are already outlined in the Strategy 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 by providing formal and informal training.

·       Continue mandating use of the DOL Automobile Use Tracking On-line System (AUTO) as the primary data collection tool to track the use of alternative fuels and notify DOL. component agencies throughout the fiscal year when they are not meeting the standard.

·       Using a DOL incentive awards program implemented to reward DOL component agencies that increase their use of alternative fuels.

·       Increasing the average EPA fuel economy rating of passenger cars and light trucks acquired as part of the overall strategy to reduce petroleum use. 

·       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 its agencies to increase the use of biodiesel fuel by taking more aggressive and innovative approaches to further reduce petroleum consumption in diesel 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 in FY 2007

Table 1 shows the number and types of FY 2007 DOL vehicle acquisitions.  DOL acquired 1026 vehicles, of which 736 were covered by EPAct and 550 were AFVs.  The 75% EPAct AFV acquisition goal was met.  (550/736 * 100 = 75%)

                   Table 1:     DOL Fiscal Year 2007 Acquisitions

Table 2 is the fuel usage for DOL fleets in FY 2007.  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. 

                                    Table 2:  DOL Fiscal Year 2007 Fuel Usage

Table 3 provides the Department’s FY 2008 AFV acquisitions and planned FY 2009 acquisitions.  DOL has placed vehicle orders with GSA for FY 2008 that will exceed the EPAct AFV acquisition requirement.   Total AFVs ordered are 438, with 385 covered by EPAct.  DOL is reviewing the cost and 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. 13423.

                 Table 3:   FY 2008 Ordered and FY 2009 Planned Acquisitions

¹ Planned acquisitions for FY2009 are preliminary numbers.  Fleet acquisition policy is                              being reviewed and updated to increase hybrid, Bio-diesel and multi-fuel vehicle acquisitions.

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.  There are still less than two thousand E85 refueling sites in the United States.  Until the number of refueling sites is substantially increased, the goal of using alternative fueling in AFVs is extremely difficult, and in some areas impossible.

DOL continues making improvements to its in-house, on-line fleet data tracking system, AUTOS.  This system replaced various non-standardized systems and methods used by the different agencies within DOL.  An enhanced version of the AUTOS system development was launched during FY 2007.  AUTOS supplies accurate and efficient compilation of data for all DOL agency fleets and provides an additional tool for DOL agencies to use in reviewing their fleet compliance progress.  

Several new enhancements are currently being developed that include system interface with the Federal Automotive Statistical Tool (FAST).  This online system has significantly improved productivity, performance, data collection 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 acquisitions and directs 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, policy statements and senior management briefings are routinely used to ask DOL agency heads for their continued support to achieve key targets of the EPAct.  The Department, in conjunction with Department of Energy, 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.

Notwithstanding the challenge posed by the requirement to increase the use of alternative fuels,

the Department will continue its efforts to meet the goals of EPAct.