2003 EPACT REPORT NOTICE

The 2003 Epact report does not match the official data reported in the Federal Automotive Statistical Tool (FAST) online data collection system because some of the vehicle fleets did not provide all of the data necessary for FAST. The Department of Labor completed the report using vehicle fleet data provided by the General Services Administration.

 

 

 

November 2003

 

Introduction:

This Department of Labor (DOL) Fleet Alternative Fuel Vehicle (AFV) Program Report for fiscal year (FY) 2003 presents DOL's data on the number of AFVs acquired in FY2003, and its planned acquisitions and projections for FY 2004 and FY 2005. The report has been developed in accordance with the Energy Policy Act of 1992 (EPAct) as amended by the Energy Conservation Reauthorization Act of 1998 and Executive Order 13149

The EPAct establishes requirements for federal agencies to acquire specific percentages of AFVs. E.O. 13149 sets a goal for covered federal agencies to reduce petroleum consumption, requiring agencies to increase alternative fuel use in AFVs and increase the fuel economy of light-duty vehicle acquisitions. 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 DOL diesel vehicles.

Legislative and Executive Order Requirements:

Section 303 of EPAct requires that 75 percent of all covered light-duty vehicles acquired by federal fleets in FY 1999 and thereafter be AFVs. These 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 improvements in overall fleet operating efficiencies

E.O. 13149 also includes two additional requirements related to achievement of the 20 percent petroleum reduction goal. First, agencies must 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 percent of a federal fleet's EPAct acquisition requirements, and do not carry over into subsequent years.

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 used in diesel vehicles.

Section 310(b) of 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. Federal agencies submit compliance data using the web-based Federal Automotive Statistical Tool (FAST).

The DOL Approach to Compliance with the EPAct and E.O. 13149:

To fulfill the requirements of E.O. 13149, DOL 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 provides that DOL will-

• · 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 Energy Policy Act of 1992, that alternative fuel vehicle 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 EPAct, DOL has already 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 ranges from zero 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 the majority 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. We will attempt to launch this program in FY 2004 to help DOL meet its 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 designated by the Six Cities Program, in order 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 biodiesel fuel is available. The use of biodiesel fuel provides an immediate EPAct credit for fuel purchases and one EPAct credit for every 2,250 gallons 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, biodiesel's higher cetane, flashpoint and increased lubricity mean excellent engine performance, safety and fuel economy. Biodiesel fuel 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 2003:

Table 1 provides the number of DOL's FY 2003 AFV acquisitions. The DOL fleet acquired 108 AFV credits, but these acquisitions were not enough to not meet the fiscal year AFV acquisition requirements for federal fleets set forth in the EPAct. The 108 AFV credits represent 11 percent of DOL's FY 2003 covered vehicle acquisitions. Table 1 provides detailed information on the number and types of vehicles leased from GSA by DOL in FY 2003. The total number of vehicle acquisitions in FY 2003 by DOL was 952. Of these, two vehicles were exempt for being in fleets outside covered metropolitan statistical areas, or were law enforcement vehicles. This means that 950 vehicles were considered EPAct-covered acquisitions in FY 2003.

Table 1: DOL FY 2003 Acquisitions

Table 1: DOL FY 2003 Acquisitions

Category	Fuel Type	Total Acquisitions	Total Covered Acquisitions
Sedans	Gasoline	433	431
	Ethanol/Gas	74	74*
	CNG/Gas Dual	0	0
MD Van	Gasoline	131	131
	Diesel	2	2
LD Van 4x4	Gasoline	9	9
LD Van 4x2	Gasoline	90	90
	E85	23	23*
LD SUV 4x4	Gasoline	113	113
	E85	10	10*
LD Pickup	Gasoline	26	26
	E85	1	1*
Bus	Diesel	18	18
Other	Gasoline	22	22
Total Acquisitions		952	950

* AFV credits

Table 2 provides fuel usage for DOL fleets in FY 2003. The information may be incomplete due to 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 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 no uniform product codes for tracking alternative fuel sales. 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 2003

*Table 2: DOL Fuel Usage in Fiscal Year 2003

Fuel Type	$ Fuel Cost	Gallons
Gasoline*	2,731,405	Gallons
CNG**	189	Gallons @2,400 psi, 70 F
Diesel	331,946	Gallons
Biodiesel-B100	0	Gallons
Propane	997	Gallons
E85	2,418	Gallons
TOTALS	3,066,955	Gallons

*Includes gasoline and may include some alternative fuel use **CNG Dedicated fuel use only :

DOL's Planned Fleet AFV Acquisitions for FY 2004 and 2005:

Table 3 provides a projection for vehicle acquisitions in FY 2004 and 2005. There continues to be difficulties in acquiring AFVs because of the high incremental costs.

In FY 2004, DOL fleets plan to acquire 140 AFVs, increasing the percentage of AFVs in the fleets and working to meet the AFV acquisition requirements of the EPAct. The projection for AFV acquisitions in FY 2005 is at least 120 AFVs. DOL does not expect to meet EPAct requirements for AFV acquisitions by FY 2004 or 2005. Nevertheless, DOL is aggressively pursuing available options to include commercial leasing of electric and/or hybrid vehicles. Although these types of 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. These types of vehicles will have a direct impact on meeting the 20% fuel reduction requirement of E.O. 13149.

Table 3:FY 2004 and 2005 Planned AFV Acquisitions

Table 3:FY 2004 and 2005 Planned AFV Acquisitions

Vehicle Type	Fuel Type	FY2004	FY2005
Sedan/ St Wgn Midsize	E85	46	51
Sedan St Wgn Compact	CNG	3	0
Sedan St Wgn Compact	E85	13	23
MD Pickup	CNG	1	0
LD Van 4x4 and 4x2	E85	73	34
LD SUV 4x4	E85	1	8
LD Pickup 4x4 and 4x2	CNG	3	0
LD Pickup 4x2	E85	0	4
TOTALS		140	120

AFV Acquisition and Use Issues:

Federal agency fleets attempting to meet the requirements of the EPAct 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 higher incremental cost of many AFVs and specific appropriations to cover these costs. To help ensure that DOL fleets have the funding needed to comply with the AFV acquisition mandates of 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 constant 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, continues to cause slow progress in this area.

DOL plans 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. DOL hopes to acquire a system that can link all fleet data throughout the agency and interface with the Federal Automotive Statistical Tool (FAST). An online system will significantly improve productivity, performance and timely access to data such as vehicle mileage, alternative fuel usage, and maintenance costs,

Summary:

DOL still has a lot of work ahead to meet the goals of the EPAct and E.O. 13149 Despite the obstacles, DOL will continue to move forward to achieve necessary reductions in conventional fuel usage and increases in AFV acquisitions.