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. Public The credits awarded likely do not reflect Private CNG CreditsElectricity Credits B100 Credits E85 Credits CNG Credits Electricity Credits 13 85 the total amount of biodiesel purchased 0 2 16 64

because each fleet may apply biodiesel fuel Non-road Column Labels 6 8,973 credits for future use. Fleets also Hydrovehicles. Generally, fleets will earn one CNG LPG CNG LPG Electricity gen B100 Grand Total Credits by fleet Row Labels use credits to meet no more than 50% of its 100615 4 0 1 used 2,296 banked credits19 to comply 36675with 63940 credit for every $25,000 invested. For the 246000 5 0 4 23 178000 68000 57586 2 0 0 annual AFV- acquisition requirements. It 26 57586 EPAct—somewhat less than the number alternative35362.95 fuel infrastructure1 0 category— 1 28 35362.95 1270512 1270512 5 0 0 is likely that some fleets are reporting only of credits applied in MY31 2018, when fleets that is, investments in MY 2019 for which the amount of biodiesel that will earn them used 2,570 banked credits. There were covered fleets reported amounts and sought those credits rather than reporting all of 10 transactions between covered fleets credits—funds were spent for CNG, and their biodiesel use. involving the transfer of a total of 1,659 electricity infrastructure. The total spent on banked credits. The number of credits public and non-public infrastructure totaled Credit Use and Acquisition exchanged in MY 2018 was 140, far fewer more than $19.6 million. Fleets earned than in MY 2019. However, the number of 1807 credits for these investments. In MY Covered fleets earn bankable credits by transactions was the same in MY 2019 and 2019, covered fleets earned 157 credits for acquiring more AFVs than are required in a MY 2018 (10). investments in alternative-fueled, non-road given model year. Fleets may then use these equipment. credits to address future AFV-acquisition requirements, or they may sell the credits Investments to fleets that have acquired an insufficient Covered fleets may earn credits for Exemptions number of AFVs in a particular model investments in non-road equipment, Overall, granted exemptions8 in MY 2019 year. In MY 2019, fleets exceeded their alternative fuel infrastructure,Annual Exemptions and emerging Requested represented and Granted a little Comparedover 1% (total to number of AFV-acquisition requirements and earned Annualtechnologies Exemptions related Requested to electric and driveTotal Granted AFV- AcquisitionComparedexemptions toRequirement granted/total AFV-acquisition Annual ExemptionsAnnual Exemptions Requested Requestedand Granted and Compared Granted Comparedto to Total1,600 AFV-Acquisition Requirement requirements) of covered fleets’ compliance25,000 Total AFV-AcquisitionTotal AFV-Acquisition Requirement Requirement 1,600 credit activity.25,000 In MY 2019, state and 1,600 2,000 1,400 25,000 20,000 1,400 alternative fuel provider fleets received a 1,800 18,000 20,000 1,400 1,200 total of 247 20,000vehicle exemptions—more than 1,600 1,200 20,000 16,000 the 197 exemptions granted in MY 2018. 1,200 1,000 1,400 14,000 15,000 1,000 Only three fleets15,000 sought exemptions in 1,000 1,200 800 15,000 12,000 MY 2019, continuing the downward trend, 800 AFVs Exemptions 800 begun in MY 2008, inAFVs the number of10,000 fleets 1,000 Exemptions 10,000 AFVs

600 AFVs seeking exemptions10,000 each year. Exemptions Exemptions 600 800 10,000 8,000 600 400 600 400 6,000 5 Learn more about calculating biodiesel fuel use5,000 credits 400 200 at epact.energy.gov/pdfs/biodiesel_guidance.pdf5,000 . 400 200 5,000 4,000 200 6 Learn more about investments at epact.energy.gov/pdfs/ 200 0 2,000 0 0 investments.pdf0. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 0 0 2008 2009 2010 2011 20120 2013 20140 2015 2016 20177 Fleets2018 also earned credits for pooling of infrastructure 2008 2009 201020092011 20102012 20112013 20122014 20132015 20142016 20152017 20162018 2017 2018 2019Total Annual AFV-Acquisition Requirement Total Annual AFV-AcquisitionExemptions Requirement Requested and non-road equipment investments that were Total Annual AFV-AcquisitionTotal Annual AFV-Acquisition Requirement RequirementExemptions Requested Exemptions Granted individually less than $25,000, but exceeded the threshold when aggregated. These pooled credits are not shown on Exemptions RequestedExemptions Requested Exemptions Granted the figure. Exemptions Granted Figure 4. AnnualExemptions exemptions Granted requested and granted compared to total AFV 8 acquisition requirement. Exemptions are detailed on the EPAct website at epact. energy.gov/exemptions.

3 Petroleum Reductions Achieved by Alternative Compliance Fleets 35 MY 2007 was the peak year for fleets seeking exemptions, when 43 fleets filed for Millions 30 exemptions. 25 In MY 2019, three fleets received 247 Petroleum Reductions Achieved by Alternative Compliance Fleets vehicle exemptions. Over the period from 2030 2000 to 2008, the average yearly number

Millions 15 of exemptions requested was over 1,400, 25 and the average number granted was over 10 20 1,000. In contrast, the average yearly number of exemptions requested from 5

Gasoline Gasoline Gallon Equivalents 15 2009 to 2019 was about 220, with an 0 average of 182 granted. With the increased 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 availability of AFV models (even shifting Cumulative Petroleum Reduction (from 2008) Alternative Fuels & Hybrid Electric Vehicles* from FFVs to other alternative fuel vehicle 5Fuel Blends Reduced Onboard Idling technologies/fuels) and opportunities to earn Reduced Idling Time Truckstop Electrification Gasoline Gallon Equivalents Gasoline Vehicle Miles Traveled Total Fuel Economy Improvements AFV-acquisition credits under the program, 0 * Beginning in MY2018, non-plug in HEVs are reported under Total Fuel Economy Improvements. Plug in hybrid electric vehicles (PHEVs) are reported in and increased availability of alternative the Alternative 2009Fuels & Hybrid2010 Electric Vehicles2011 category. 2012 2013 2014 2015 2016 2017 2018 fueling infrastructure across the nation, the Cumulative Petroleum Reduction (from 2008) Alternative Fuels & Hybrid Electric Vehicles* number of exemption requests and granted Figure 5.Fuel Petroleum Blends reductions achieved by AlternativeReduced Compliance Onboard Idling fleets. requests should continue to be low. Reduced Idling Time Truckstop Electrification Vehicle Miles Traveled Total Fuel Economy Improvements 2019. The* Beginning remaining in MY2018, non-plug fleets in HEVs applied are reported underbanked Total Fuel EconomyNotices Improvements. Plug of in hybrid Intent electric vehicles (PHEVs) are reported in Alternative the Alternative Fuels & Hybrid Electric Vehicles category. gasoline gallon equivalents (GGEs) to During MY 2019, DOE received eight Compliance Results meet their respective requirements. The notices of intent to apply for a waiver from MY 2019 marked the twelfth year that eight fleets’ total required petroleum use Standard Compliance for MY 2020. This covered state and alternative fuel provider reduction for MY 2019 was 2,162,017 number of notices of intent is six fewer than fleets could choose DOE’s Alternative GGEs, and their total actual petroleum the number that were received in MY 2018 Compliance option in lieu of complying consumption reduction was 2,329,399 for MY 2019 compliance. with EPAct via Standard Compliance. GGEs, exceeding the aggregate petroleum reduction requirement as a group by EPAct 2005 established Alternative For More Information Compliance, and the option was put in 167,382 GGEs. The fleets met and place by DOE’s final rulemaking in March exceeded their petroleum reduction goals Learn more about the State and Alternative 2007 for initial application in MY 2008. using the following methods (percentages Fuel Provider Fleet Program and Standard Under Alternative Compliance, fleets based on the total petroleum reduction and Alternative Compliance at employ petroleum reduction measures in reported [amount required plus additional epact.energy.gov, or contact the Regulatory lieu of acquiring AFVs under Standard achieved]): Information Line at 202-586- 9171 or Compliance. Examples of these petroleum [email protected]. • Using biodiesel blends (65%) reduction measures are included in the chart above. Fleets must obtain a waiver • Using alternative fuels (17%) from DOE for the upcoming model year. To receive a waiver, fleets first must submit • Improving fuel economy (15%) an intent to apply for a waiver to DOE; • Limiting engine idling time (3%). they then must follow up with that intent by filing a complete waiver application that The petroleum reduction the eight fleets includes a plan showing how they intend to using Alternative Compliance achieved reduce their fleets’ petroleum consumption. in MY 2019 was slightly less than the petroleum reduction the eight fleets in the Achievements in MY 2019 same program achieved in MY 2018. DOE approved waiver applications for eight fleets to participate in Alternative Compliance for MY 2019. Six of these For more information, visit: fleets were able to meet their required epact.energy.gov petroleum fuel use reductions for MY DOE/GO 102020-5490 • December 2020

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