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Fleet Compliance Annual Report: Model Year 2019

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Fleet Compliance Annual Report: Model Year 2019 State & Alternative Fuel Provider Fleets Fleet Compliance Annual Report: Model Year 2019, Fiscal Year 2020 Photo from iStock #480652712 The U.S. Department of Energy (DOE) aggregate MY 2019 petroleum use Standard Compliance Results reduction requirements by more than 7%. regulates covered state government Covered state and alternative fuel provider fleets operating under Standard Compliance and alternative fuel provider fleets, Overall, DOE saw an increase from MY (10 CFR Part 490, Subpart C or D) pursuant to the Energy Policy Act of 2018 in total biodiesel fuel use reported achieved compliance by acquiring AFVs as well as an increase in fuel use credits 1992 (EPAct), as amended. and certain non-AFVs; purchasing biodiesel earned via biodiesel use; 2,414 biodiesel for use in medium- or heavy-duty (MD/ fuel use credits were earned in MY 2019. For model year (MY) 2019, the HD) vehicles; investing in alternative fuel The number of reported light-duty (LD) infrastructure, non-road equipment, and compliance rate with this program alternative fuel vehicles (AFVs) acquired emerging technology; and/or applying for the more than 3101 reporting increased,2 and the number of vehicles banked credits earned previously or that earned partial credit decreased. MY fleets was 100%. Fleets used either acquired from other covered fleets. In MY 2019 marked the sixth year that fleets Standard Compliance or Alternative 2019, fleets that used Standard Compliance: complying via Standard Compliance could Compliance reporting methods. earn credits for the acquisition of certain • Acquired 18,053 creditable LD and non-AFV electric drive vehicles, as well neighborhood electric vehicles (NEV) Fleet Compliance at a Glance as investments in alternative fuel non-road More than 302 fleets used Standard equipment, alternative fuel infrastructure, Compliance and exceeded their aggregate and emerging technologies. The data for MY 2019 acquisition requirements by 35% MY 2019 suggest a steady presence of through acquisitions of creditable vehicles, EPAct-covered state and alternative fuel biodiesel, infrastructure, and non-road provider fleets in the AFV, alternative fuel, equipment. The eight covered fleets that and advanced technology vehicle markets. used Alternative Compliance exceeded their 1 Some reporting entities represent one agency or business; others represent the fleet operations of multiple entities (e.g., a state or company that reports on behalf of all of its covered state agencies or subsidiaries). Total number of fleets whose information is submitted in annual reports is estimated to be roughly 2,000. What Is EPAct? 2 AFVs include any dedicated or dual-fueled vehicle The Energy Policy Act of 1992 (EPAct) was passed by Congress to reduce the (i.e., any vehicle that operates solely on, or is capable of operating on, at least one alternative fuel). The following nation’s dependence on imported petroleum. Provisions of EPAct require fuels are defined or designated as alternative fuels: certain fleets to acquire AFVs. DOE administers these requirements through its methanol, denatured ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; natural gas and State and Alternative Fuel Provider Fleet Program, Federal Fleet Requirements, liquid fuels domestically produced from natural gas; liquefied petroleum gas (propane); coal-derived liquid and Alternative Fuel Designation Authority. fuels; hydrogen; electricity; fuels (other than alcohol) derived from biological materials (including pure biodiesel [B100]); and three P-series fuels. Standard Compliance Methods 30,000 StandardStandard Compliance Compliance Methods Methods 30,00030,000 covered fleets to earn partial AFV-acquisition 25,000 credits for the acquisition of some vehicles 25,00025,000 that are not AFVs. 20,000 20,00020,000 Specifically, acquiring HEVs, PHEVs that are not AFVs,4 and MD/HD electric vehicles 15,000 15,000 15,000 can earn a covered fleet 0.5 credit per Acquisition Credits Acquisition Credits - Acquisition Credits - - vehicle, while the acquisition of NEVs can 10,000 10,000 10,000AFV AFV AFV earn a covered fleet 0.25 credit per NEV. 5,000 5,000 5,000 Acquisition of LD non-AFVs and NEVs 0 that earned less than a full credit each (1,303 0 0 2009200920102010201120112012201220132013201420142015201520162016201720172018201820192019 in 2019) resulted in fleets earning a total of 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total Annual AFV-Acquisition Requirement Credits for Light-Duty AFVs, Non-AFVs, and NEVs Total Annual AFV-Acquisition Requirement Credits for Light-Duty AFVs, Non-AFVs, and NEVs 17,334 credits, for acquisition of LD AFVs, Credits Applied Biodiesel Credits Total AnnualCredits AFV-Acquisition Applied Requirement CreditsBiodiesel for Light-Duty Credits AFVs, Non-AFVs, and NEVs non-AFVs, and NEVs in MY 2019—slightly Exemptions Granted Investment Credits Credits AppliedExemptions Granted BiodieselInvestment Credits Credits more credits than in 2018. Credits for Medium and Heavy-Duty Vehicles All Light-Duty Vehicles ExemptionsCredits Granted for Medium and Heavy-Duty Vehicles InvestmentAll Light-Duty Credits Vehicles Credits*Purchased for Medium credits and can be Heavy-Duty banked for future Vehicles use. All Light-Duty Vehicles *Purchased credits can be banked for future use. The increase in the number of AFVs and creditable non-AFVs acquired is not Figure*Purchased 1. creditsStandard can be banked Compliance for future use. methods. unexpected given the increase in the number of LDVs acquired. The total number of • Earned 592 credits for the acquisition of Vehicle Acquisitions vehicles acquired each year by covered 1,384 creditable non-AFVs (i.e., hybrid Acquiring AFVs is typically how covered fleets has not changed dramatically in recent electric vehicles [HEVs], certain plug-in fleets comply. Under Standard Compliance, years. However, the number of categories hybrid electric vehicles [PHEVs], MD/ 75% of the non-excluded light-duty vehicles of vehicles for which credits may now be HD electric vehicles, and NEVs) (LDVs) that state fleets acquire must be earned has expanded, resulting in fleets AFVs, while 90% of the non-excluded LDVs having additional flexibility in meeting • Earned 2,414 biodiesel fuel use credits by that alternative fuel provider fleets acquire their needs. In addition, once covered fleets purchasing more than 8.2 million gallons must be AFVs. AFV-acquisition requirements have achieved compliance, they may earn of B1003 are determined by multiplying a fleet’s bankable credits for any MD/HD vehicles • Earned 295 credits for investments number of newly acquired, non-excluded they acquire. In MY 2019, covered fleets of $27.1 million in alternative fuel LDVs by the applicable percentages. In earned 3,948 credits for the acquisition of infrastructure and non-road equipment MY 2019, the number of creditable LDV MD/HD vehicles. In total, fleets acquired acquisitions by covered fleets was 18,053, an 22,042 creditable vehicles of all size • Applied 2,296 banked credits. increase from MY 2018 (16,747). Changes categories. Flexible-fuel vehicles accounted to the program effective in MY 2014 allow for about 84% of these acquired AFVs. In addition, these state and alternative fuel provider fleets earned a total of 8,973 Annual Biodiesel (B100) Use and Biodiesel Credits Earned bankable AFV credits. 12 3,000 As a whole, the fleets operating under Millions Standard Compliance went beyond 10 Annual Biodiesel (B100) Use and Biodiesel Credits Earned 2,500 compliance, exceeding their AFV- acquisition requirements (17,563) by 12 8 2,0003,000 approximately 35%. Millions 10 6 1,5002,500 Gallons 8 2,000 CreditsEarned 4 1,000 3 The credits awarded for biodiesel purchase and use do not necessarily reflect the total amount of biodiesel 6 1,500 purchased because each fleet may apply its biodiesel 2 500 fuel use credits to meet no more than 50% of its annual Gallons AFV-acquisition requirements, and so many fleets do not CreditsEarned report the full amount of the biodiesel they use. - 4 01,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4 To be considered an AFV, the vehicle must be dedicated 2 500 or dual-fueled. Some PHEVs are considered AFVs and Total Annual Biodiesel Credits Earned State Fleets others are not, depending on whether the vehicle in Alternative Fuel Provider Fleets Total Biodiesel Use question meets the “dual-fueled vehicle” definition. For - 0 additional information, please review program guidance 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 epact.energy.gov/pdfs/plug-in_hybrid_electric_ vehicles. Figure 2. Annual biodiesel (B100) use and biodiesel credits earned. pdf. Total Annual Biodiesel Credits Earned State Fleets Alternative Fuel Provider Fleets Total Biodiesel Use 2 Biodiesel Fuel Use CodeCode 1 1 Covered state and alternative fuel provider Alternative Fuel Infrastructure 2019 Non-Road Equipment 2019 2 2 3 3 fleets may earn one biodiesel fuel use credit $150K, [5 credits] 4 4 $2.9M, [16 credits] 5 5 $3.1M, [85 credits] $1.3M, [5 credits] 6 6 for every 450 gallons of pure biodiesel $1.1M, [27 credits] 7 7 8 8 (B100) or one biodiesel fuel-use credit for 9 9 10 10 11 11 every 2,250 gallons of 20% biodiesel blends $32K,$32K, [1 [1 credit] credit] 12 12 (B20)5 they purchase for use in MD/HD $4.6M, [13 credits] vehicles (10 CFR sections 490.701-702). In $8.9M, [64 credits] $4.9M, [77 credits] MY 2019, covered fleets reported using just $1.6K, [0 credits] under 8.3 million gallons of B100 in B20 $190K, [2 credits] or higher blends, thus allowing these fleets to earn a total of 2,414 biodiesel fuel use CNG Not Publicly Available CNG Publicly Available B100 Not Publicly Available E85 Not Publicly Available CNG LPG Electricity Hydrogen B100 credits. Some fleets have also begun to use Electricity Not Publicly Available Electricity Publicly Available renewable diesel, which is counted as B100. Figure 3. AlternativeInfrastructure fuel infrastructure and non-road equipment.
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