December 8, 2003

Bureau of Administration
Fleet Management Administration
October 20, 2003

Legislative Requirements

The Energy Policy Act of 1992 (EPAct) requires that 75 percent of all covered light-duty vehicles (where the fleets have 20 or more vehicles, are capable of being centrally fueled, and are operated in a metropolitan statistical area with a population of more than 250,000 based on the 1980 census) acquired for Federal fleets in FY 1999 and beyond must be AFVs. Certain emergency, law enforcement, and national defense vehicles are exempt from these requirements. EPAct also sets a goal of using replacement fuels to displace at least 30 percent of the projected consumption of motor fuel in the United States annually by the year 2010. The Energy Conservation and Reauthorization Act of 1998 amended EPAct to allow one alternative fuel vehicle acquisition credit for every 450 gallons of pure biodiesel fuel consumed (or 2,250 gallons of B20, as it is normally sold) in vehicles over 8,500 pounds gross vehicle weight rating. "Biodiesel credits" may fulfill up to 50 percent of an agency's EPAct requirements. The head of each Federal agency must also prepare and submit a report to Congress outlining the agency's AFV acquisitions and future plans by November 13th of each year. Executive Order 13149 directs Federal agencies operating fleets of 20 or more vehicles within the United States to reduce their annual petroleum consumption by at least 20 percent by the end of FY 2005 (compared to FY 1999 levels) by using alternative fuels in AFVs more than 50 percent of the time, improving the average fuel economy of new light-duty petroleum-fueled vehicle acquisitions by 1 mpg by FY 2002 and 3 mpg by FY 2005, and by using other fleet management efficiency measures.

Department of State Approach to Compliance with EPAct and E.O. 13149

To achieve compliance with the legislative mandates of EPAct and with E.O. 13149, the DOS's strategy for vehicle acquisitions is as follows:

To the maximum extent that AFVs meeting operational requirements are available from original equipment manufacturers, all acquisitions (purchases and leases) of covered vehicles will be AFVs. To facilitate achieving this objective, the DOS centrally purchases new vehicles through the headquarters Fleet Management Division to the extent practicable. However, outright purchases typically comprise a small percentage of DOS annual non-exempt light-duty (LD) vehicle acquisitions.

Compressed Natural Gas (CNG) use: with the addition of 4 dedicated CNG buses in FY 2002, DOS is now operating 6 dedicated CNG buses, and over 30 dedicated or bi-fuel CNG light duty vehicles in the Washington DC metropolitan area. Lack of adequate refueling infrastructure for CNG buses has caused serious problems, and a study is underway now to identify solutions.

Biodiesel use: For the last 3 years, the DOS intended that some of its diesel-operated trucks and buses begin using B20 procured from the Pentagon CITGO station, where a B20 pump was to be installed. Unfortunately, that B20 installation continues to be on hold. The DOS will continue to pursue this option with the expectation of using B20 when it becomes available.

Ethanol (E85 blend): DOS currently operates almost 100 E85 flex-fuel light duty vehicles; however, as with CNG, the commercial availability of E85 remains limited.

Department of State Fleet Compliance for FY 2003

As of the date of this writing, the DOS is still collecting the data (inventory, acquisition, fuel consumption, maintenance costs, fuel economy, and alternative fuel utilization) to calculate the AFV-acquisition percentage and various metrics showing progress toward EO 13149 goals. However, DOS anticipates completing the input of the data into the web-based Federal Automotive Statistical Tool (F.A.S.T.) before the final closing date (December 15, 2003) set by DOE. At that time, a final FY03 AFV report will be submitted that will provide background and explanations of the FY03 F.A.S.T. input.

Change to FY 1999 baseline of the "EO 13149 Covered Petroleum Consumption"

In FY02, DOS commenced reporting in F.A.S.T. the vehicles that are assigned to the International Boundary and Water Commission (IBWC). The addition of these vehicles almost doubles the number of "covered" vehicles (and the covered fuel consumption) being reported by DOS. A request for a change in the FY 1999 baseline will be incorporated in the FY 2003 F.A.S.T. submission, so that the FY 1999 fuel consumption of the IBWC vehicles will be included in the DOS FY 1999 baseline.

The DOS is fully committed to compliance with EPAct requirements. However, due to the unavailability of B20 and the limited availability of CNG and E85, the 20% petroleum fuel reduction goal (by FY2005) is not on track. DOS is continuing efforts to identify new opportunities for obtaining B20, CNG and E85. In addition, DOS now requires vehicle users to fully justify assignment of less fuel-efficient large trucks and 4X4 vehicles.

It is anticipated that DOS will again make progress towards meeting the 3 MPG fuel economy rating increase by 2005, as it did in FY 2002 by achieving a 2.1 MPG increase over the FY 1999 baseline. Also, based on both its acquisition plan for FY03 and its ongoing strong commitment to acquire alternative fuel vehicles wherever practicable, DOS fully expects the FY03 AFV-acquisition percentage to meet or exceed the EPAct 75% AFV acquisition mandate, as has been the case in the last 3 fiscal years (Figure 1).

Department of State's EPAct AFV Acquisition Percentage Achievement Record

Department of State's EPAct AFV Acquisition Percentage Achievement Record