Clean Cities Technical Response Service (TRS) Question of the Month

Welcome to the September installment of the Clean Cities Technical Response Service (TRS) Question of the Month.

Question of the Month: Which fleets are regulated under the Energy Policy Act of 1992 (EPAct 1992) and subsequent regulations and directives, and what are the requirements?

Answer: EPAct 1992 established several transportation-related regulatory activities, including mandating that certain federal agency, state agency, and alternative fuel provider fleets in the United States acquire alternative fuel vehicles (AFVs) or reduce their petroleum use in other ways. Subsequent regulations and federal executive orders have modified the EPAct 1992 requirements over time, but the basic elements and compliance structures remain intact. The U.S. Department of Energy (DOE) is responsible for overseeing compliance with these regulations through the Vehicle Technologies and Federal Energy Management Programs. Additional information about “covered fleets” (fleets subject to EPAct 1992 requirements) and the requirements associated with compliance for each of these fleet types is outlined below.

Federal Fleets
Covered Fleets
Federal fleets are considered covered fleets if both of the following conditions are met:
• They own, operate, lease, or otherwise control 20 or more non-excluded light-duty vehicles (LDVs; vehicles with a gross vehicle weight rating of 8,500 pounds or less) that are used primarily within a single metropolitan statistical area (MSA)/consolidated metropolitan statistical area (CMSA). Excluded vehicles include emergency, law enforcement, and nonroad vehicles.
• Those same 20 vehicles are centrally fueled or capable of being centrally fueled.

EPAct 1992 Requirement
At least 75% of federal non-excluded LDV acquisitions in covered fleets must be AFVs.

Compliance
Compliance for federal fleets is met using AFV acquisition credits, which are granted based on the number of AFVs acquired and the quantity of biodiesel fuel used. If an agency’s total AFV credits divided by the number of covered LDV acquisitions in a fiscal year equals 75% or greater, the agency is considered to be in compliance. Federal fleets earn credits as follows:
• One credit for every bi-fuel or flexible fuel vehicle acquired.
• One additional credit for acquiring a dedicated AFV.
• Three credits for acquiring a dedicated medium-duty vehicle.
• Four credits for every dedicated heavy-duty vehicle acquired.
• One credit for every 450 gallons of neat biodiesel (B100) or 2,250 gallons of B20 (20% biodiesel and 80% petroleum diesel) purchased for use. The biodiesel must be in blends of B20 or higher. Federal fleets are allowed to use these credits to fulfill up to 50% of their AFV acquisition requirements.

Federal fleets are subject to several additional requirements for AFV acquisition, alternative fuel use, and infrastructure development. For more information, including reporting requirements, reference DOE’s Federal Fleet Guidance document (http://www1.eere.energy.gov/femp/pdfs/fleetguidance_13514.pdf) and the Federal Energy Management Program’s Comprehensive Federal Fleet Management Handbook (http://www1.eere.energy.gov/femp/pdfs/eo13514_fleethandbook.pdf).

State Fleets
Covered Fleets
State fleets are considered covered fleets if all three of the following conditions are met:
• They own, operate, lease, or otherwise control 50 or more non-excluded LDVs.
• At least 20 of those vehicles are used primarily within a single MSA/CMSA.
• Those same 20 vehicles are centrally fueled or capable of being centrally fueled.

State fleets may use the following resources to determine whether their fleet is covered:
• Decision Tree for State Government Fleets: http://www1.eere.energy.gov/vehiclesandfuels/epact/state_decision_tree.html
• State Government Fleet Compliance with the Energy Policy Act of 1992: Self-Audit Procedures: http://www1.eere.energy.gov/vehiclesandfuels/epact/pdfs/selfaudit_procedures.pdf

EPAct 1992 Requirement
At least 75% of state non-excluded LDV acquisitions must be AFVs.

Compliance Methods
Covered state fleets may meet their requirements through one of two compliance methods:
• Standard Compliance: Under Standard Compliance, fleets may meet their requirements by acquiring the requisite number of new or used AFVs, obtaining AFV credits from other covered fleets, or converting conventional vehicles to run on an alternative fuel within four months of acquisition. Each qualified light-duty AFV is worth one AFV credit. Medium- and heavy-duty AFVs are also eligible for credits that may be banked for future use, but only after the annual AFV acquisition requirements are met with light-duty AFV acquisitions. Covered fleets may also meet as much as 50% of their AFV-acquisition requirements by using biodiesel blends of at least B20. One credit is earned for every 450 gallons of neat biodiesel (B100) or every 2,250 gallons of B20 purchased for use.
• Alternative Compliance: Under Alternative Compliance, covered fleets may obtain a waiver from the AFV acquisition requirements of Standard Compliance by submitting and then implementing an approved plan to reduce petroleum consumption. The plan must result in petroleum reductions equal to what the fleet would have achieved if all its AFVs were running on alternative fuel all the time. The plan must also include a sufficient level of data and information to support the fleet’s compliance requirements, particularly information on fuel use.

Alternative Fuel Provider Fleets
Covered Fleets
An alternative fuel provider is any entity that meets one of the following conditions:
• The entity’s principle business involves producing, storing, refining, processing, transporting, distributing, importing, or selling any alternative fuel.
• The entity’s principle business involves generating, transmitting, importing, or selling electricity at wholesale or retail.
• The entity produces, imports, or produces and imports in combination, an average of 50,000 barrels per day or more of petroleum, and 30% or more of its gross annual revenues are derived from producing alternative fuels.

An alternative fuel provider is not covered if its principal business involves:
• Transforming alternative fuels into products that are not alternative fuels; or
• Using alternative fuel as a feedstock, or fuel, in the manufacturing of products that are not alternative fuels.
In addition to meeting this definition, alternative fuel provider fleets are also subject to the same conditions for inclusion as state fleets (see above).

Alternative fuel provider fleets may use the Decision Tree for Alternative Fuel Provider Fleets (http://www1.eere.energy.gov/vehiclesandfuels/epact/alt_decision_tree.html) to determine whether their fleet is covered.

EPAct 1992 Requirement
At least 90% of alternative fuel providers’ non-excluded LDV acquisitions must be AFVs.

Compliance Methods
Covered alternative fuel provider fleets are subject to the same compliance methods as state fleets (see above).

Additional information on state and alternative fuel provider requirements and compliance, including annual reporting, can be found on the DOE’s State and Alternative Fuel Provider Fleet Coverage and Compliance Web site (http://www1.eere.energy.gov/vehiclesandfuels/epact/fleet_coverage_compliance.html) and/or contact the Regulatory Information Line at regulatory.info@nrel.gov or 202-586-9171.

As always, please contact the TRS with other questions, or if you have suggestions for additional resources or a future Question of the Month.

Clean Cities Technical Response Service Team
technicalresponse@icfi.com
800-254-6735