EPAct Update
EPAct Requires Federal Fleets to Use Alternative Fuels
Fiscal year (FY) 2008 marks the first year EPAct-covered federal fleets are required to comply with Section 701 of the Energy Policy Act (EPAct) of 2005. Under this provision, fleets must use alternative fuel in dual-fuel vehicles unless they obtain a waiver from DOE.
Dual-fuel vehicles (which include ethanol/gasoline-capable FFVs and gasoline/natural gas- or gasoline/propane-capable bi-fuel vehicles) currently make up more than 85% of the alternative fuel vehicles (AFVs) in the federal fleet.
According to Section 701, federal fleets must use alternative fuels in dual-fuel vehicles unless it is not reasonably available or is unreasonably expensive. "Not reasonably available" is defined as unobtainable within a 15-minute drive or within five miles (one way), whichever is greater. "Unreasonably expensive" is defined as costing considerably more than gasoline on a gasoline gallon equivalent basis.
If a federal fleet can prove either of these cases applies, it can request a waiver from DOE. Waiver requests are due by June 30 prior to the fiscal year for which the waiver is sought (for example, the deadline for submitting a request for FY 2008 was June 30, 2007). Waivers are good for one year and only apply to vehicles that meet the waiver criteria. Fleets are responsible for using alternative fuels in dual-fuel vehicles that are not covered by waivers.
"Waivers are considered a short-term solution," says Brad Gustafson, DOE's acting federal fleet regulatory manager. "Fleets that receive them are expected to spend their waiver year finding ways to use alternative fuels in their dual-fuel vehicles during subsequent fiscal years."
Regardless of whether they obtain waivers under Section 701, all federal agencies must still comply with Executive Order 13423, which requires agencies with 20 or more vehicles in the United States to decrease petroleum consumption by 2% per year relative to their FY 2005 baseline through FY 2015 and to increase alternative fuel use by 10% per year relative to the previous year from a FY 2005 baseline.
For more information on EPAct Section 701, read the guidance on the EPAct Web site.
