State & Alternative Fuel Provider Fleets EPAct Alternative Fuel Transportation Program non-AFVs; purchasing biodiesel for use State and Alternative Fuel Provider Fleet in medium- or heavy-duty (MD/HD) Compliance Annual Report vehicles; investing in alternative fuel infrastructure, non-road equipment, and Fleet Compliance Results for MY 2014/FY 2015 emerging technology; and/or applying banked credits earned previously or The U.S. Department of Energy (DOE) reported in MY 2014. There was only acquired from other covered fleets. In MY 2014, the more than 288 fleets regulates covered state government a small drop in the number of reported that used Standard Compliance: and alternative fuel provider (SFP) light-duty (LD) alternative fuel vehicles fleets under the Alternative Fuel (AFVs) acquired,2 a value that is • Acquired 17,119 LD AFVs Transportation Program, pursuant negligible when the number of other • Earned 452.25 credits for the acquisi- to the Energy Policy Act of 1992 creditable vehicles reported is taken tion of 966 creditable non-AFVs (EPAct), as amended. For model year into account. MY 2014 marked the (i.e., hybrid electrics, certain plug-in (MY) 2014, the compliance rate with first year fleets complying via Standard hybrid electric vehicles [PHEVs], MD/ 1 this program for the more than 295 Compliance could earn credits for the HD electric vehicles, neighborhood reporting SFP fleets was 100%. Fleets acquisition of certain non-AFV electric electric vehicles [NEVs]) used either Standard Compliance or drive vehicles as well as investments in • Earned 2,157 biodiesel fuel use credits Alternative Compliance. The more alternative fuel non-road equipment through the purchase of about 6.9 mil- than 287 fleets that used Standard and alternative fuel infrastructure and lion gallons of pure biodiesel (B100)3 Compliance exceeded their aggregate emerging technologies. Compared MY 2014 acquisition requirements to recent model years, the data for • Earned 155 credits for investments by 5% through acquisitions alone. MY2014 suggest a continued presence of just under $14 million in alterna- The eight covered fleets that complied of EPAct-covered state and alternative tive fuel infrastructure and non- using Alternative Compliance exceeded fuel provider fleets in the AFV, alterna- road equipment their aggregate MY 2014 petroleum tive fuel, and advanced technology • Applied 2,016 banked credits. use reduction requirements by 67%. vehicle markets. In addition, these SFP fleets earned a Overall, DOE saw a decrease from MY total of 9,800 bankable AFV credits. 2013 in total biodiesel fuel use reported Standard Compliance of nearly 800,000 gallons of B100, but Covered SFP fleets operating under only a slight decrease in the number Standard Compliance (10 CFR Part 1 Some reporting entities represent one agency or business; others represent the fleet operations of multiple entities (e.g., of biodiesel fuel use credits earned; 490, Subpart C or D) achieve compli- a state or company that reports on behalf of all covered state about 6.9 million gallons of B100 were ance by acquiring AFVs and certain agencies or subsidiaries). 2 AFVs include any dedicated or dual-fueled vehicle (i.e., any vehicle that operates solely on or is capable of operating on at least one alternative fuel). The following fuels are defined or designated as alternative fuels: methanol, denatured ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline; What Is EPAct? natural gas and liquid fuels domestically produced from natural gas; liquefied petroleum gas (propane); coal-derived liquid fuels; The Energy Policy Act of 1992 (EPAct) was passed by Congress to reduce the hydrogen; electricity; fuels (other than alcohol) derived from nation’s dependence on imported petroleum. Provisions of EPAct require certain biological materials (including pure biodiesel (B100)); and three P-series fuels. fleets to purchase AFVs. DOE administers these requirements through its Alternative 3 The credits awarded for biodiesel purchase and use do not Fuel Transportation Program, Federal Fleet Requirements, and Alternative Fuel necessarily reflect the total amount of biodiesel purchased because each fleet may apply its biodiesel fuel use credits Designation Authority. to meet no more than 50% of its annual AFV-acquisition requirements. VEHICLE TECHNOLOGIES OFFICE 2 VEHICLE TECHNOLOGIES OFFICE Standard Compliance Methods 30,000 25,000 20,000 Exemptions Granted 15,000 Biodiesel Credits Applied Credits* Light-Duty AFV Credits AFV-Acquisition Credits AFV-Acquisition 10,000 Total Annual AFV-Acquisition Requirement 5,000 All Light-Duty Vehicles *Purchased credits can be banked for future use. 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 As a whole, the fleets operating under a fleet’s number of newly acquired, and the acquisition of NEVs can earn a Standard Compliance went beyond non-excluded LDVs by the applicable covered fleet 0.25 credit per NEV. compliance, exceeding their AFV- percentages. In MY 2014, the number Acquisition of LD vehicles and NEVs acquisition requirements (15,805) by of LD AFV acquisitions by covered that earned less than a full credit each approximately 34%. fleets was 17,119, a slight increase from resulted in fleets earning a total of Vehicle Acquisitions the number in MY 2013 (16,983). New 16,617 credits for acquisition of LD for MY 2014 is the implementation of vehicles and NEVs in MY 2014— Acquiring AFVs is typically how changes to the regulations for the pro- slightly less than in 2013. covered fleets comply. Under Standard gram, by which covered fleets may now Compliance, 75% of the non-excluded The slight drop from MY 2013 for MY earn partial AFV acquisition credits for light-duty vehicles (LDVs) that state 2014 in the number of AFVs acquired the acquisition of some vehicles that are is not necessarily unexpected because, fleets acquire must be AFVs, while 90% not AFVs. Specifically, acquiring hybrid even though the MY 2014 figure of the non-excluded LDVs that alterna- electric vehicles (HEVs), plug-in hybrid includes now creditable non-AFVs, the tive fuel provider fleets acquire must electric vehicles that are not AFVs,4 total number of vehicles acquired by be AFVs. AFV-acquisition require- and MD/HD electric vehicles can earn covered fleets would not be expected to ments are determined by multiplying a covered fleet 0.5 credit per vehicle, change dramatically. In other words, the number of categories of vehicles for which credits may now be earned Credit Allotment Limitations/Other has expanded; however, the number AFV 1 credit MD/HD AFV acquisitions do not count toward meeting of vehicles in total that are acquired the AFV requirement. may or may not grow, depending on fleet needs. In addition, once covered HEV ½ credit fleets have achieved compliance, they PHEV 1 credit for dual fuel 1 credit for an LD PHEV equipped with a conventional may earn bankable credits for any PHEV fuel engine that meets the National Highway Traffic MD/HD vehicles they acquire. In ½ credit for Safety Administration (NHTSA) criteria for dual-fueled MY 2014, covered fleets earned 3,688 conventional PHEV electric automobile. ½ credit for an LD PHEV that does not meet the NHTSA requirement. credits for the acquisition of MD/HD vehicles. In total, fleets acquired 20,807 FCEV 1 credit for alternative 1 credit for an LD or MD/HD fuel cell electric vehicle creditable vehicles of all size categories. fuel FCEV (FCEV) operating on alternative fuel. Onboard ½ credit for conven- reforming of natural gas qualifies because natural gas tional fuel FCEV is an alternative fuel. ½ credit for a FCEV operating on 4 To be considered an AFV, the vehicle must be a dedicated conventional fuel. vehicle or a dual-fueled vehicle. Some plug-in hybrid electric vehicles are considered AFVs and others are not, depending on NEV ¼ credit Not included in covered LDV count. whether the vehicle in question meets the “dual-fueled vehicle” definition. For additional information, please review program MD/HD HEV ½ credit Not included in covered LDV count. guidance (www1.eere.energy.gov/vehiclesandfuels/epact/pdfs/ plug-in_hybrid_electric_vehicles.pdf). VEHICLE TECHNOLOGIES OFFICE 3 Creditable Vehicle Acquisitions 25,000 20,000 15,000 Alternative Fuel Provider Fleets (MD/HD) 10,000 Alternative Fuel Provider Fleets (LD) LD and MD/HD AFVs LD and MD/HD State Fleets (MD/HD) 5,000 State Fleets (LD) Total Annual Creditable Vehicle Acquisitions 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Flexible-fuel vehicles accounted for EPAct—an increase over the number nearly 92% of these acquired AFVs. of credits applied in MY 2013, when fleets used 1,427 banked credits. There Credit Use and Acquisition were 13 transactions between covered Covered fleets earn bankable credits fleets involving the transfer of 383 by acquiring more AFVs than are banked credits. The number of credits required in a given MY. Fleets may exchanged in MY 2013 was 1,154, more then use these credits to address future than in MY 2014, and the number of AFV acquisition requirements or they transactions decreased by half in MY may sell the credits to fleets that have 2014 (13) compared to MY 2013 (26). acquired an insufficient number of AFVs in a particular MY. In MY 2014, Biodiesel Fuel Use fleets exceeded their AFV acquisi- Covered SFP fleets may earn one tion requirements and earned 9,800 biodiesel fuel use credit for every 450 credits for future use. Fleets also used gallons of pure biodiesel (B100) or one 2,016 banked credits to comply