Question Of The Month For May 2013

This Question of the Month from the DOE Clean Cities Technical Response Team is the first installment in a two-part series describing requirements for federal fleets (May) and state and alternative fuel provider fleets (June) under EPAct 1992 and subsequent regulations and directives.

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Question of the Month: What are the requirements for federal fleets under the Energy Policy Act of 1992 (EPAct 1992) and subsequent regulations and directives?

EPAct 1992, EPAct 2005, and National Defense Authorization Act (NDAA) of 2008

Under EPAct 1992, 75% of new covered light-duty vehicles (LDVs) acquired by federal fleets must be alternative fuel vehicles (AFVs). Federal fleets are considered covered fleets if both of the following conditions are met:

• They own, operate, lease, or otherwise control 20 or more non-excluded LDVs (vehicles with a gross vehicle weight rating of 8,500 pounds or less) that are used primarily within a single metropolitan statistical area. Excluded vehicles include emergency, law enforcement, military tactical, and non-road vehicles, and
• Those same 20 vehicles are centrally fueled or capable of being centrally fueled.

NDAA of 2008 expanded EPAct 1992’s definition of AFVs to include hybrid electric vehicles, fuel cell vehicles, advanced lean burn technology vehicles, and any low-greenhouse gas (GHG) emitting vehicle (as defined by the U.S. Environmental Protection Agency) acquired in a location that would qualify for an EPAct 2005, Section 701 fuel waiver. Section 701 of EPAct 2005 requires federal fleets to use alternative fuels in dual-fuel vehicles unless the U.S. Department of Energy (DOE) determines an agency qualifies for a waiver; grounds for a waiver include the lack of alternative fuel availability (within five miles or 15 minutes from the vehicle’s garaged location) and cost restrictions (alternative fuel is more expensive per gallon than gasoline). To find information about waivered fleets in your area, visit the Sustainable Federal Fleet Performance Data website.

Federal fleets comply with EPAct 1992 requirements using AFV acquisition credits, which are granted based on the number of AFVs acquired and the volume of biodiesel fuel used. If an agency’s total AFV credits divided by the number of covered LDV acquisitions in a fiscal year (FY) equals 75% or greater, the agency is considered to be in compliance. Federal fleets earn credits for each light-, medium-, or heavy-duty AFV they acquire each year and for every 450 gallons of pure biodiesel (B100), equivalent to 2,250 gallons of B20, used in fleet vehicles.

For more information on EPAct 1992, please refer to the Federal Energy Management Program’s (FEMP) EPAct 1992 website, as well as the full text of EPAct 1992.

Executive Orders

Executive Order (E.O.) 13423 requires federal agencies with 20 or more non-excluded vehicles in their U.S. fleet to decrease petroleum consumption by 2% each year, relative to their FY 2005 baseline, through the end of FY 2015, for a total reduction of 20%. Agencies must also continue to increase their alternative fuel use by 10% per year, relative to the previous year over the same timeframe, yielding an approximately 159% increase.

E.O. 13514 requires each federal agency to develop, implement, and annually update a Strategic Sustainability Performance Plan. Federal agencies must measure, reduce, and report their GHG emissions, with an overall federal government direct GHG emissions reduction goal of 28% by 2020, relative to a FY 2008 baseline. Reductions may be achieved through a variety of measures including reducing vehicle use, increasing fleet fuel efficiency, using AFVs, and implementing fleet optimization efforts. In addition, E.O. 13514 extended petroleum reduction targets established by E.O. 13423 to FY 2020, for a total future reduction of 30%.

Energy Independence and Security Act of 2007 (EISA)

Further requirements for federal fleets were included in the EISA 2007, including fleet management plan requirements (Section 142), low-GHG emitting vehicle acquisition requirements (Section 141), and renewable fuel infrastructure installation requirements (Section 246). DOE is currently developing a rulemaking on the alternative fuel increase requirements under EISA Section 142.

For a summary of federal agency fleet requirements, refer to the Sustainable Federal Fleets website and Alternative Fuels Data Center Vehicle Acquisition and Fuel Use Requirements for Federal Fleets summary. Also refer to the Clean Cities University course on Understanding EPAct-Regulated Fleets and the FEMP training course on Fleet Management 101. In addition, the chart below provides a breakdown of the key federal requirements described above:

Federal Fleet Requirements
	EPAct (1992 & 2005)	E.O. 13423	EISA 2007	E.O. 13514
GHG Emissions Reduction			All LDV & medium-duty vehicle (MDV) acquisitions must be low-GHG emitting vehicles	Sets percentage reduction targets for agency GHG emissions
Petroleum Reduction		2% annual reduction in petroleum use between FY 2005 and FY 2015	E.O. 13423 requirement becomes law	2% annual reduction in petroleum use between FY 2005 and FY 2020
Fleet Planning			Develop agency plan to meet petroleum and alternative fuel goals	Develop agency plan to meet E.O. 13514 sustainability goals
Alternative Fuel Use	Dual-fueled AFVs must use alternative fuel, unless waivered	Increase alternative fuel use 10% from previous year	Install renewable pumps at all fueling centers
AFV Acquisition	AFVs must be 75% of light-duty acquisitions	Use plug-in hybrid electric (PHEVs) when commercially available	All LDV & MDV acquisitions must be low-GHG emitting vehicles

Fracking For Oil

An AP article about technological advances in drilling for oil and gas.

The result is an abundance that has put the United States on track to become the world's largest producer of oil and gas in a few years. As domestic production as soared, oil imports have fallen to a 17-year low, the U.S. government reported Thursday [May 2, 2013].

Fracking, which has produced such an abundance of natural gas, is doing the same thing for oil in the United States.

Fracknation

From Fracknation...

Dear friends:

Well, what a few weeks we've had. It seems there's the only thing anti-fracking activists dislike more than fracking is difficult questions.

And they really don't like those questions coming from ordinary Americans.

• Phelim [McAleer] was supposed to attend the world premiere of Gasland 2 at the Tribeca Film Festival and write a review for the New York Post. He asked some tough questions of Josh Fox on the red carpet, and Tribeca staff barred him, Ann McElhinney, and a group of farmers from entering the screening--even though everyone had tickets! See the video on our YouTube channel.
• The New York Times picked up the story when Tribeca claimed that the farmers and filmmakers weren't allowed in because the screenings were sold out. But FrackNation posted exclusive video showing the REAL reason: "We just don't feel comfortable letting them into the movie."
• Andrew Revkin of The New York Times also wrote about the incident at Tribeca and called their reason for barring farmers "dubious." He added, "I feel bad for the blocked residents of the country’s gas lands."
• The Hollywood Reporter reported that a Russian journalist was even arrested(!) at Tribeca for trying to cover the story of the festival keeping us out of the screening. So Josh Fox and the establishment don't want filmmakers and farmers questioning their documentaries, but they especially don't want journalists questioning their exclusionry policies.

Apart from this drama we've been busy pushing out FrackNation:

• Ann screened the film and gave a talk at the 2013 Pennsylvania Leadership Conference.
• FrackNation screenings are happening all over the country! Recently we had a series of screenings in Illinois, Phelim went on a tour of Pennsylvania, and the Ohio screenings are ongoing across the state. We also have upcoming screenings in Colorado, New York, Montana, and other places! Check out the Screening page on our website for more information.
• Ann won the "Woman Warrior Award" at the Pennsylvania Leadership Conference for her "visionary work and undaunted voice to further the cause of freedom." Tell her congrats on Facebook!
• Phelim will attend four FrackNation screenings in Pennsylvania and New York in early May: Jamestown NY, Franklin PA, Warren PA, and Lake Huntington NY. He'll answer questions after each screening. Check our website for details and to see other upcoming screenings.
• Reminder: We just released FrackNation: Extra Energy Edition, a special edition DVD with the full film PLUS 30 minutes of new footage and our TV spots.
• With the premiere of Gasland 2 there is going to be increased discussion of Fox's thoroughly debunked original documentary. We need all the help we can get to counter the media's coverage. Please join the conversations on our Facebook & Twitter pages.

Thanks for helping to spread the truth!

Phelim, Ann & Magdalena [Segieda]

Transit was the first to climb on-board

A USA Today article about the popularity of alternative fuels in city transit buses, one-third of which are powered by fuels other than diesel.

Half of the bus fleet for Lee County Transit in Florida is diesel-electric hybrids. They use 24% less fuel than their diesel buses. "A 35-foot diesel bus costs $316,188, vs. $549,041 for the basic hybrid package," but the agencies marketing manager says that is recouped through lower fuel costs and reduced brake and engine maintenance.

"Some transit agencies were 'early adopters' of the fuels, starting about two decades ago, and have demonstrated that they can be used with safety and efficiency."

Tesla vs. Clean Energy Fuels Corp.

An article comparing several aspects (including financial) Tesla Motors electric vehicles and Clean Energy Fuels plan for nationwide natural gas infrastructure for transportation.

• Tesla's stock price has more than doubled since it went public in 2010.
• Clean Energy Fuel's stock price has had peaks and valleys, but is at about the same price now as it was in 2008.

• In 2011 Tesla lost $2.53/share. In 2012 the loss was $3.69/share.
• In 2011 Clean Energy lost $0.68/share. In 2012 the loss was $1.16/share.

• 4,750 Tesla S models have been sold through the end of March 2013.
• Clean Energy Fuel deliveries in the 4th quarter of 2012 were up 25% from deliveries in the same quarter in 2011.

• The U.S. government has been pouring billions into EV manufacturers and battery research.
• The "Nat Gs Act" remains stuck in Congress.

• In today's market, the Tesla is dirty. 40% of grid electricity in the U.S. is generated by burning coal. Manufacturing the batteries for EVs requires the use of electricity as well.
• Natural gas is cheap, emits half as much CO2 as coal when burned, 30% less CO2 than gasoline or diesel, and none of the toxic particulate emissions of coal, gas or diesel.

The article recommends the natural gas/electric hybrid as the best engine architecture. Toyota produced just such a concept vehicle in 2008. It had a range of 250 miles, emitted zero toxic particulates, no plug-in, the car itself is affordable, and the fuel is cheap and domestic.

Natural Gas Use In Trucking Industry To Increase

A NY Times article identifies some elements in the expected growth:

• Cummins has started manufacturing big engines that will make long haul trucking on natural gas posible.
• UPS will expand its fleet of 18-wheelers that run on LPG to 800 vehicles by the end of 2014 - currently they have 112.
• Clean Energy Fuels plans to increase its number of natural gas stations from 70 to 100 to 120 by the end of this year.

Clean Cities Question Of The Month

Question of the Month: What are the federal emissions and fuel economy standards for current and future on-road vehicles? Have any related emissions and fuel regulations been passed recently?

Answer: Corporate Average Fuel Economy (CAFE) standards and the associated greenhouse gas (GHG) emissions standards set requirements for new light-, medium-, and heavy-duty vehicle models with the goal of improving the overall fuel efficiency and environmental impact. Fuel economy standards for light-duty vehicles were introduced in the Energy Policy and Conservation Act (EPCA) of 1975; regulations were established for on-road vehicles beginning with Model Year (MY) 1978. EPCA grants the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) the authority to regulate CAFE standards, with the requirement that new standards may not be proposed more than five model years at a time.

In 2010, NHTSA partnered with the U.S. Environmental Protection Agency (EPA) to issue the first joint program that includes both fuel economy requirements under NHTSA’s CAFE program and emissions standards under EPA’s GHG emissions program. Starting with MY 2012 vehicles, manufacturers are required to improve fleet-wide fuel economy and reduce fleet-wide GHG emissions by approximately 5% each year. By 2016, vehicles must meet an estimated combined average emissions level of no more than 250 grams of carbon dioxide per mile. If the industry met this carbon dioxide standard solely through fuel economy improvements, vehicles would have an average fuel economy of 35.5 miles per gallon (mpg). For more information, see the EPA fact sheet: http://www.epa.gov/otaq/climate/regulations/420f10014.pdf.

NHTSA and EPA established the CAFE and GHG emissions standards for MY 2017 through MY 2025 passenger cars and light-duty trucks in 2012 in two phases, which are broken down as follows:

	Model Years	Average Fleet-Wide Fuel Economy
Phase 1	MY 2017-MY 2021	40.3-41.0 mpg (by MY 2021)
Phase 2*	MY 2022-MY 2025	48.7-49.7 mpg (by MY 2025)

*Proposed, pending final rule

For more information, refer to the EPA fact sheet: http://www.epa.gov/oms/climate/documents/420f12051.pdf.

In 2011, NHTSA and EPA set the first-ever standards to reduce GHG emissions and improve fuel efficiency of medium- and heavy-duty vehicles (vehicles with a gross vehicle weight rating greater than 10,000 pounds). The standards cover MY 2014 through MY 2018 on-road vehicles and are tailored to each of three main regulatory subcategories:

• Combination tractors (also known as semi trucks);
• Heavy-duty pickup trucks and vans; and
• Vocational vehicles (such as delivery, refuse, and tow trucks; transit, shuttle, and school buses; and emergency vehicles).

The requirements provide flexibility through an emissions and fuel consumption credit system to help reduce the overall costs of the program and to allow manufacturers time to make necessary technological improvements.

For more information on fuel economy and GHG emissions standards, refer to the NHTSA CAFE – Fuel Economy (http://www.nhtsa.gov/fuel-economy/), EPA Transportation and Climate (http://www.epa.gov/otaq/climate/regulations.htm), and FuelEconomy.gov (http://fueleconomy.gov/) websites.

On March 29, 2013, EPA announced their Tier 3 Vehicle Emission and Fuel Standards Program, which includes more stringent tailpipe emissions standards for non-methane organic gas (NMOG), nitrogen oxides (NOx), and particulate matter (PM); more stringent evaporative vehicle emissions; and lower sulfur content of gasoline. This proposal aligns vehicle standards with the GHG emissions standards outlined above, as well as the California Low Emission Vehicle Program (http://www.afdc.energy.gov/laws/law/CA/6493), allowing automakers to sell the same vehicle models in every state. The standards would apply to light-duty trucks, medium-duty passenger vehicles, and some heavy-duty vehicles and include different phase-in schedules based on vehicle class from MY 2017 to MY 2025. The proposed gasoline sulfur standard would make emission control systems more effective for both existing and new vehicles. For more information, refer to the proposed rule (http://www.epa.gov/otaq/documents/tier3/tier3-nprm-20130329.pdf) and the EPA Tier 3 Vehicle Emission and Fuel Standards Program website (http://www.epa.gov/otaq/tier3.htm).

For more up-to-date information about federal and state vehicle standards, refer to the Alternative Fuels Data Center (AFDC) Federal Incentives and Laws website (http://www.afdc.energy.gov/laws/fed_summary).