Federal Fleets Face New Executive Order, EPAct Requirements

A new executive order and recent legislation now require federal agencies covered under the Energy Policy Act (EPAct) of 1992 to further increase the use of alternative fuels and decrease petroleum in their fleet vehicles.

Signed by President Bush in January 2007, Executive Order (E.O.) 13423 requires agencies with 20 or more vehicles in the U.S. to decrease petroleum consumption by 2% per year (relative to their fiscal year [FY] 2005 baseline) through FY 2015. In addition, the mandate requires agencies to increase alternative fuel use by 10%, compounded annually based on their FY 2005 baseline use.

E.O. 13423 revokes E.O. 13149, which was signed by former President Clinton in 2000 and required agencies to reduce their petroleum consumption by 20% relative to their FY 1999 baseline. E.O. 13149 also required agencies to increase fuel economy by 3 miles per gallon. Only one federal agency, NASA, met the 20% reduction goal. However, as a result of the Order, federal agencies used a total of 36.6 million gasoline gallon equivalents (GGE) of alternative fuel between FY 2000 and FY 2006.

In addition to E.O. 13423, federal agencies must comply with Section 701 of EPAct 2005, which requires the use of alternative fuels in all dual-fuel vehicles the majority of the time. Applicable fuels include E85 in flexible fuel vehicles and compressed and liquefied natural gas or propane in bi-fuel vehicles.

Under Section 701, fleets can apply for a waiver from this requirement if alternative fuel is not reasonably available (within a 15-minute drive or five miles) or is unreasonably expensive (costs 15% more than gasoline on GGE basis). Only one waiver is granted per agency and the waiver is applicable for one year.

Agencies that receive waivers are required to spend their waiver year finding ways to make alternative fuel readily available. This includes building on-site infrastructure, partnering with local Clean Cities coalitions or state or federal fleets to install fueling sites, or encouraging local station owners to sell alternative fuels.

For more information on E.O. 13423 or Section 701, visit the Federal Fleet Web site.

Source: Clean Cities Now, Vol. 11, No. 3 - June 2007.