Federal Fleet Requirements
Federal fleets are subject to several statutory requirements, executive orders, and other policies. The following Federal laws and regulations contain fleet management, alternative fuel use, and petroleum reduction mandates. Regulations include:
- Energy Policy Act of 1992
- Energy Policy Act of 2005
- Energy Conservation Reauthorization Act
- Executive Order 13423
- Energy Independence and Security Act of 2007
- National Defense Authorization Act of 2008
- Executive Order 13514
Guidance documents to help Federal agencies meet these requirements are also provided below.
Energy Policy Act of 1992
Energy Policy Act (EPAct) 1992 set the following fleet management goals and requirements:
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Set statutory requirements for the acquisition of alternative fuel vehicles (AFVs) by Federal agencies. Starting in fiscal year 2000, 75% of light-duty vehicle (LDV) acquisitions in covered fleets must be AFVs. Vehicles that weigh less than 8,500 pounds GVWR are considered LDVs.
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States that EPAct 1992 requirements apply to fleets of 20 or more LDVs that are centrally fueled or capable of being centrally fueled and are primarily operated in a metropolitan statistical area (MSA)/consolidated metropolitan area (CMSA). Vehicles heavier than 8,500 pounds GVWR or not located or operated primarily in a covered MSA or CMSA are exempt from these requirements. Law enforcement, emergency, and military tactical vehicles are also exempt. To find out if your fleet is covered under EPAct 1992, start with the MSA/CMSA list on the DOE Vehicle Technologies Program Web site.
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Compliance with EPAct 1992 is met by AFV acquisition credits, which are granted based on the number of AFVs acquired and the quantity of biodiesel fuel used.
- Federal fleets earn one credit for every bi- or flexible-fuel AFV acquired.
- An additional credit is earned for acquiring dedicated AFVs as these vehicles operate exclusively on alternative fuels.
- Three credits are earned for dedicated medium duty vehicles.
- Four credits are earned for dedicated heavy-duty vehicle acquisitions.
- Fleets also earn one credit for every 450 gallons of neat biodiesel (B100) or 2,250 gallons of B20 (20% biodiesel and 80% petroleum diesel) used.
Energy Policy Act of 2005
Section 701 of EPAct 2005 requires the use of alternative fuels in Federal dual-fueled AFVs unless the Secretary of Energy determines that an agency qualifies for a waiver. The waiver covers vehicles operated by an agency in a particular geographic area in which:
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The alternative fuel required for use in the vehicle is not reasonably available (within a 5 mile or 15 minute drive of the vehicles' garaged location) as certified to the Secretary by the head of the agency.
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The cost of the alternative fuel required for use in the vehicle is unreasonably more expensive compared to a gallon of gasoline as certified to the Secretary by the head of the agency.
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The Secretary shall monitor compliance by all such fleets and shall report annually to Congress on the extent to which the requirements are being achieved. The report shall include information on annual reductions in petroleum consumption and the problems, if any, encountered in acquiring alternative fuels.
Energy Conservation Reauthorization Act
The Energy Conservation Reauthorization Act (ECRA) amended EPAct 1992 to allow fleets to generate one alternative-fuel vehicle (AFV) acquisition credit for every 450 gallons of pure biodiesel (B100, equivalent to 2,250 gallons of B20) purchased for use in medium- and heavy-duty diesel vehicles (vehicles weighing more than 8,500 pounds gross vehicle weight rating (GVWR)). To achieve AFV acquisition credit through biodiesel consumption, the biodiesel must be in blends of B20 or higher. Federal fleets are allowed to use these credits to fulfill no more than 50% of their EPAct 1992 AFV acquisition requirements. These credits can be claimed only in the year in which the fuel is purchased for use and cannot be traded among fleets.
Executive Order 13423
Executive Order (E.O.) 13423 requires Federal agencies with 20 or more vehicles located in the U.S. to decrease annual petroleum consumption by 2% each year and increase annual alternative fuel use 10% each year through fiscal year 2015 relative to a fiscal year 2005 baseline. It also requires Federal agencies to use plug-in hybrid electric vehicles (PHEVs) when commercially available at a cost reasonably comparable, on the basis of life-cycle cost, to non-PHEVs. Currently no PHEVs are commercially available.
Energy Independence and Security Act of 2007
Section 141 of the Energy Independence and Security Act (EISA) of 2007 prohibits Federal agencies from acquiring LDVs and medium-duty passenger vehicles that are not low greenhouse gas (GHG)-emitting vehicles. The Environmental Protection Agency (EPA) is currently developing guidance to assist agencies in complying with this requirement.
Section 142 requires Federal agencies to develop executable plans to meet statutory and E.O. fuel consumption requirements and to report annually to DOE on their progress towards meeting the goals laid out in this plan. DOE is also directed to establish interim milestones to assess annual agency progress. DOE is currently completing rulemaking and developing guidance to assist agencies in complying with this requirement. Initial executable plans are due to DOE by December 31, 2009.
Section 246 directs Federal agencies to install at least one renewable fuel pump at fueling centers under their jurisdiction by January 1, 2010, and to provide annual reports on their progress in meeting this requirement. Department of Defense fueling centers that consume less than 100,000 gasoline gallon equivalent (GGE) of fuel per year are exempt from this requirement.
National Defense Authorization Act of 2008
The National Defense Authorization Act (NDAA) amended EPAct 1992 and classified several new vehicles as "alternative fueled vehicles" (AFV) as defined in Section 30B of the Internal Revenue Service (IRS) Code. Agencies will receive one EPAct 1992 AFV acquisition credit for each qualifying vehicle acquired, regardless of weight class, beginning in fiscal year 2009.
The four new categories of vehicles include:
- A new qualified fuel cell motor vehicle
- A new advanced lean-burn engine technology motor vehicle
- A new qualified hybrid motor vehicle
- Any other type of vehicle that the Administrator of the EPA demonstrates to the Secretary of Energy would achieve a significant reduction in petroleum consumption.
Executive Order 13514
E.O. 13514 requires Federal agencies to consider fleet and transportation management during greenhouse gas inventory and mitigation processes. Specifically, within annual GHG emission reduction targets, Federal agencies must consider:
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Reducing petroleum consumption in agency fleets of 20 or more 2% annually through fiscal year 2020 relative to a fiscal year 2005 baseline.
Additional details are outlined in the Greenhouse Gas Management section.
Guidance
The following guidance documents are available as Adobe Acrobat PDFs and offered to help meet fleet management goals and requirements: Download Adobe Reader
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Documentation Requirements for Waiver Requests under EPAct 2005 Section 701: Provides information on the qualifications needed for, and how to submit, a waiver request (PDF 214 KB).
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New Alternative Fuel Vehicle Definitions under Section 2862 of the National Defense Authorization Act of 2008: Provides guidance to Federal agencies regarding the NDAA language regarding new alternative fuel vehicles (PDF 316 KB).
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Instructions for Implementing E.O. 13423: Identifies the entities responsible for coordination and oversight of E.O. 13423 and defines strategies for agencies to meet these requirements (PDF 298 KB).
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Getting Started: A Guide to Creating a Compliance Summary: Overview document provided by FEMP to help Federal fleet managers understand and gain compliance for Federal fleet goals and requirements (PDF 820 KB).