FLEET MANAGEMENT/EPA, DOE agendas differ but have same bottom line

In recent years, an ever-increasing number of centrally fueled vehicle fleets, many of them municipal, have been converting to alternative fuel vehicles (AFVs).

It is essential that municipal fleet managers be well-informed about the root of this movement — the incentives and regulatory requirements mandated under the Clean Air Act (CAA) amendments of 1990 and the Energy Policy Act (EPAct) of 1992. Fleets covered under these programs include those with at least 10 centrally fueled vehicles owned by the same entity.

The CAA amendments are administered by EPA, whereas the EPAct is administered by the Department of Energy.

Although they impose similar requirements and effects, their goals are quite different. While the CAA’s alternative fuel program seeks to reduce vehicular pollutant emissions, the primary goal of EPAct is to reduce U.S. dependency on imported fuels, specifically petroleum.

As a result, petroleum-based low emission fuels such as reformulated gasoline and clean diesel can be used to meet CAA requirements but are not allowed under the EPAct.

The CAA requires states containing certain ozone non-attainment areas to have a program promoting use of clean-fuel fleet vehicles. The AFVs must be capable of meeting stringent emission standards.

Not all states currently have these programs in place, and the requirements vary from state to state. All programs, however, will contain a required phase-in of AFVs into covered fleets and an AFV credit program.

Under the CAA’s phase-in program, a percentage of new vehicle purchases must be AFVs. Typical percentages start at 30 to 50 percent AFVs in model year 1998, increasing to 70 percent two years later.

The EPAct also establishes an AFV phase-in program, as well as a credit program for early AFV purchases or purchases in excess of the number required.

The EPAct’s phase-in schedule is somewhat different from that under the CAA, typically starting with 20 percent AFVs for model year 1999 and rising to 70 percent for model year 2006.

Fleet owners may meet AFV requirements by purchasing new AFVs or converting existing vehicles to an alternative fuel; trading credits for vehicle purchases; or redeeming credits that have been banked under the AFV credit programs. Conversions of existing vehicles to an alternative fuel are not eligible for credits.

DOE developed several initiatives, such as the Clean Cities Program, as a result of the EPAct. The program seeks to establish a process by which cities and the DOE can jointly promote the creation of an alternative fuels market.

Under the program, participating cities are mentored through a process of defining goals and establishing coalitions with alternative fuel suppliers, covered fleets, and state and local agencies. The cities then earn the Clean Cities designation.

Many factors determine which of the allowable alternative fuels will be selected by fleets for conversion. The main factors tend to be fuel availability, fuel supply infrastructure, fuel and fueling equipment costs, AFV purchase costs, and the cost of alternative fuel conversion.

In many cases, compressed natural gas is the alternative fuel of choice because it:

• is allowed under both acts;

• is widely available;

• has a well-developed vehicle conversion technology; and

• has a well-developed supply infrastructure in many metropolitan areas.

Additionally, the big three auto manufacturers either have compressed natural gas AFVs on the market or plan to in the near future.

Electric vehicles are gaining in popularity because of the rapid development of new battery technology that makes possible a longer driving range, possibly in excess of 150 miles.

Jacques Liautaud, Director, BDM Environmental, Lanham, Md.