FEDERAL ENERGY MANAGEMENT PROGRAM DOE/EE-0280 Alternative Fuel Vehicles Adding energy-efficient alternative fuel vehicles to Federal fleets enhances energy security, reduces fuel imports, and benefits the environment Executive Summary other alcohol fuels; biodiesel; natural gas and Leading by example, liquid fuels produced domestically from natural Relying more on domestic fuels and less on saving energy and gas; hydrogen; electricity; and propane. imported petroleum will enhance the nation's taxpayers dollars in energy security, help to curb air emissions, and Several different kinds of AFVs can be purchased federal facilities serve as a hedge against fluctuating fuel prices. directly from major manufacturers, and they are To reduce petroleum imports, the Energy Policy available in a wide range of models and styles. Act of 1992 (EPAct) has called for reductions in But alternative fuels are still not widely available, Federal the consumption of gasoline and diesel fuel in and this is the biggest challenge for Federal fleets automobiles, among other requirements. Cur- that want to acquire AFVs. On-site stations can be Technology rently, more than 160 billion gallons of gasoline adapted for fleets that are refueled centrally. But and diesel fuel are consumed each year in more when fleet vehicles need to be driven a great dis- Alert than 200 million vehicles on U.S. roads. And tance from the central station, it can be difficult nearly 13 million of those vehicles are operated to locate stations with alternative fuels. Therefore, A New Technology by fleet owners. Therefore, EPAct focuses on the one of the best options for today's fleets is to use Demonstration potential for reducing petroleum use in U.S. vehi- a combination of traditionally fueled vehicles cle fleets, particularly the numerous fleets owned and AFVs. Publication and operated by the Federal government. This Federal Technology Alert, one of a series on new EPAct stipulates that 75% of the new, light-duty technologies prepared by the Federal Energy vehicles purchased by Federal fleets each year Management Program (FEMP) in the Depart- must be alternative fuel vehicles (AFVs)—cars ment of Energy (DOE), describes the Federal and trucks that operate on fuels other than gaso- government's plans and progress in meeting the line and diesel. Executive Order 13149, signed in goals for AFVs stated in EPAct and the Executive 2000, goes on to require Federal fleets to use alter- Order. It describes the types of alternative fuels native fuels to achieve a 20% reduction in on-road and AFVs currently available; lists actual and petroleum consumption by 2005. Designated potential uses in Federal fleets; makes some alternative fuels include methanol, ethanol, and general recommendations, which vary according to a facility's needs and capabilities; and presents some field experiences to date. Energy-Saving Mechanism ord Motor Company/PIX12697 F Alternative fuel vehicles save energy in several ways. For example, using AFVs reduces the consumption of U.S. Department of Energy traditional transpor- Energy Efficiency and tation fuels, and this Renewable Energy helps to conserve Bringing you a domestic oil resources. prosperous future This 2004 flexible-fuel Ford F150 pickup has been redesigned to have a more spacious Every gallon of alter- where energy is clean, interior; it is a popular model for fleets as well as individual drivers. native fuel we use abundant, reliable, and affordable Internet: www.eere.energy.gov/femp/ No portion of this publication may be altered in any form without prior written consent from the U.S. Department of Energy, Energy Efficiency and Renewable Energy, and the authoring national laboratory. FEDERAL ENERGY MANAGEMENT PROGRAM displaces an equal amount of petro- Incorporating AFVs into fleets of any Implementation Barriers leum fuel. And each Federal light- size requires careful evaluation and The primary barriers to greater Federal duty AFV can displace an average planning. Fleet operators will want use of AFVs are the lack of a wide- of about 600 gallons of gasoline per to evaluate their needs and determine spread refueling infrastructure and year. If just 20% of the Federal fleet, the costs and capabilities of different typically higher vehicle costs. These which includes about 478,000 light- vehicles as well as the availability of barriers are not easy to overcome. For duty vehicles, were converted to reliable fuel supplies. For example, example, potential buyers might hesi- domestically produced alternative one agency might choose ethanol tate to purchase AFVs in large volume and renewable fuels, approximately vehicles because they tend to have until commercial refueling stations are 54 million gallons of gasoline and lower incremental costs than other readily available. At the same time, diesel fuel could be saved each year. AFVs and can be refueled on the agency's sites. Another agency might station owners might hesitate to invest Potential Applications decide to buy natural gas vehicles for in the refueling infrastructure until its large fleet of pickup trucks, after there are enough AFVs to make it a Large Federal fleets that are refueled finding that natural gas trucks are good investment. centrally are probably the strongest widely available and refueling equip- Volume purchases could be one of the candidates for AFVs, for several rea- ment can be connected directly to the most effective ways to help bring sons. For example, large fleet opera- agency's existing gas lines. So, agen- down the cost of many types of AFVs. tors usually need some new vehicles cies must consider several different The added cost of an AFV currently every year, and this provides many factors when purchasing AFVs for ranges from very little for certain new opportunities to increase the use Federal applications. vehicles that run on ethanol to about of AFVs. And large fleets can usually $1,700–$7,800 for those that run on purchase AFVs in greater volume Field Experiences compressed natural gas. than smaller fleets can. Many Federal fleets already include To help break down barriers like these, In addition, large fleet operators often AFVs; each year, more than 7,500 new the Federal government provides have on-site refueling stations that can ones are acquired. To facilitate these incentives to fleets acquiring AFVs. readily be converted to provide alter- acquisitions, the government has And new legislation is proposed fre- native fuels, which makes it easier to established some innovative ways quently to stimulate the AFV market. use AFVs. Building a new alternative to budget for AFVs. The most promi- fueling station can be costly. But con- nent is the GSA surcharge program, verting an existing station to ethanol, in which a Federal agency agrees to Conclusion for example, can be relatively inexpen- a fixed monthly surcharge on every There is enormous potential in the Fed- sive, because the tanks and pumps GSA vehicle it leases. The surcharge eral government to make greater use needed are already on the site. money then helps to pay for the new of alternative fuels. Therefore, among AFVs that the agency purchases the other measures, the Energy Policy Act Large fleets that use local commercial following year. All the agency's fleets of 1992 calls for Federal fleets to adopt refueling stations rather than on-site thus contribute to its compliance with a leadership role in acquiring motor stations can also be good candidates EPAct and the Executive Order, vehicles that run on these fuels. for AFVs. These fleets are usually reli- whether or not the fleet includes However, it takes time and careful able customers that make extensive AFVs. The U.S. Army and DOE both planning to evaluate the needs of an use of a commercial station. So, they participate in this program. agency or a facility and determine the can be in a good position to negotiate Both field experiences and laboratory best vehicles for a particular budget, new refueling capabilities with the tests show that AFVs match their con- application, and location. But making station's owner. ventionally fueled counterparts in the effort can yield great returns. Although large fleets have the advan- performance as well as operating Using AFVs not only helps agencies tage, many smaller fleets can be good costs. And reliable fuel supplies, meet Federal requirements, it also candidates for AFVs, as well. Factors as well as the number of refueling contributes to the nation's energy such as the agency's mission, the avail- stations, are on the increase. Fleets security by replacing some of our ability of funds and fuels, and incen- can now use DOE's alternative fuel imported petroleum with domestic tives can help smaller fleets to acquire refueling locator (www.afdc.doe.gov/ fuels. these vehicles. refueling.html) to determine the closest alternative fueling stations and to map trips. FEDERAL ENERGY MANAGEMENT PROGRAM Federal Technology Alert: Alternative Fuel Vehicles Adding energy-efficient alternative fuel vehicles to Federal fleets enhances energy security, reduces fuel imports, and benefits the environment Abstract therefore been encouraged to take a leading role in advancing alternative fuel technologies. Alter- Federal Alternative fuel vehicles (AFVs)—cars and trucks native fuels are advantageous not just because that operate on fuels other than gasoline and Technology of their role in reducing the need for imported diesel—are beneficial to the Federal government, petroleum but also because of their “clean fuel” Alert and the nation as a whole, in several ways. For attributes. Vehicles running on alternative fuels example, they enhance our energy security by typically produce fewer tailpipe emissions of reducing the need for imported fuels, and they certain air pollutants. improve air quality by reducing the emissions associated with many vehicles that use traditional In addition, fleet vehicles of any kind typically transportation fuels. accumulate higher annual mileages than private vehicles do, so they must be replaced more often.