January 2006

Introduction:

This Department of Labor (DOL) Alternative Fuel Vehicle (AFV) Program Report for Fiscal Year (FY) 2005 presents DOL’s data on the number of AFVs acquired in FY 2005, and its planned acquisitions and projections for FY 2006 and FY 2007. 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 (EO) 13149, Greening the Government Through Federal Fleet 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. 13149 sets a goal for covered Federal agencies to reduce annual petroleum consumption by at least 20 percent by the end of FY 2005, 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 our diesel vehicles. To date, DOL has not fully met the EPAct AFV acquisition requirement, but is on target for meeting the requirement for new vehicle acquisitions in FY 2006.

 

Legislative and Executive Order Requirements:

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 entire 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 Department of Energy and Environmental Protection Agency (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.

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.

 

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 and 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.

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 B-20 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 our fleet.

DOL AFV Acquisitions for FY 2005:

Table 1 provides the number of FY 2005 AFV acquisitions. The DOL fleet earned 104 AFV credits, but these acquisitions were not enough to meet the FY 2005 AFV acquisition requirements for Federal fleets set forth in the EPAct. The 104 AFV credits represent 20 percent of DOL’s covered vehicle acquisitions for FY 2005.

Table 1 provides detailed information on the number and types of vehicles leased from GSA by DOL in FY 2005. The total number of vehicle acquisitions in FY 2005 was 873. Of these, 333 were exempt for being outside covered metropolitan statistical areas, or were law enforcement vehicles. These exemptions left 540 vehicles considered EPAct covered acquisitions for DOL fleets in FY 2005. Of the total covered vehicles for FY 2005, 104, or 19% were AFVs.

 

 

 

 

Table 1: DOL Fiscal Year 2005 Acquisitions

 

Table 2 provides fuel usage for Departmental fleets in FY 2005. 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 (E-85), making it difficult 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 continue to meet with the major fuel suppliers to address the issue of uniform product codes for tracking alternative fuel sales. A Federal workgroup committee continues to tackle the problem and progress reports will be provided to Federal agencies as more information becomes available.

 

Table 2: DOL Fuel Usage in Fiscal Year 2005

*Includes gasoline and some alternative fuel use

 

 

DOL’s Planned Fleet AFV Acquisitions for 2006 and 2007:

 

Table 3 provides a projection for vehicle acquisitions in FY 2006 and 2007. DOL has placed vehicle orders for FY 2006 that will meet and/or exceed the EPAct requirement. Of the 708 vehicles ordered to date 449 are covered by EPAct, and 406, or an estimated 90 percent, of the EPACT covered vehicles are AFVs. If this trend continues, the Department will exceed the goal of 75 percent during FY 2006. The DOL will also aggressively pursue the leasing of electric and 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 and will have a direct impact upon the 20% fuel reduction requirement of E.O. 13149.

 

 

FY 2006 and FY 2007

Table 3: Planned AFV Acquisitions

AFV Acquisition and Other Use Issues:

The lack of an AFV fueling infrastructure to support DOL AFVs continues to be a concern. When AFVs are leased significant difficulties remain in locating fuel and maintenance repair sites.

During FY2005 the DOL continued in-house development of an on-line fleet data tracking system , Automotive Utilization and Tracking On-line System (AUTOS) . This system is to replace the various non-standardized systems and methods used by the different internal agencies within the DOL. The new AUTOS system development should be completed and be launched during FY2006. The in-house system will provide accurate and more efficient compilation of data, and have the capability to link all fleet data throughout the agency. In the future, the system will interface with the Federal Automotive Statistical Tool (FAST). The online system will significantly improve productivity, performance and timely access to accurate data such as vehicle mileage, alternative fuel usage and maintenance costs.

In FY2005 the DOL fleet met the E.O.13149 required Department of Energy and Environmental Protection Agency (EPA) average fuel economy rating increase of 3 mpg, as compared to the FY 1999 baseline.

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. 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 directing agencies to select the smallest vehicles meeting job requirements. The policy also calls for vehicle drivers to use alternative fuels and fuel blends wherever it is possible and practical to do so. Agencies will continue to ensure the implementation of various strategies to meet the mandates required by the EPAct and E.O. 13149.