Regulations and Incentives

| Regulations and Incentives Main Page | Federal Regulations and Incentives | 
| Washington State Regulations | Washington State Incentives | Clean Cities Efforts in Washington State |

Energy Policy Act (EPAct)

<Note: For the official DOE EPAct page including guidance and other detailed information, visit this link. This page also has resources and information on the recently announced program of alternative compliance with EPAct requirements.>


What is EPAct? The Energy Policy Act (EPAct) was passed in 1992 to accelerate the use of alternative fuels in the transportation sector.  The U.S. Department of Energy's (DOE) primary goals are to decrease the nation's dependence on foreign oil and increase energy security through the use of domestically produced alternative fuels.  DOE's mission is to replace 10% of petroleum based motor fuels by the year 2000, and 30% by 2010.

What fleets are covered?  Federal, state and fuel provider (utilities and alternative fuel suppliers) fleets are currently mandated in regards to alternative fuel vehicles. Of these entities, those that own, operate, lease or control at least 50 light-duty vehicles (8,500 lbs or less) in the US are covered. Of the fleet vehicles, 20 or more must be operating primarily within any affected area (see below). The vehicles must also be centrally fueled or capable of being centrally fueled. A fleet must meet all three requirements to be 'covered' by EPAct. Municipal and private fleets have been considered for mandates, but no final rule has been issued.

What areas are affected? Metropolitan Statistical Areas (MSAs) must have at least one urbanized area of 50,000 or more inhabitants. If specified criteria are met, adjacent metropolitan and micropolitan statistical areas may be conglomerated into Combined Statistical Areas (CSAs). The table below shows the affected areas in Washington State. For each county listed, the entire county is an affected area under EPAct. This does not necessarily mean, however, that fleets in these counties are covered by EPAct. To search by zip code to see if an area is covered, use this link (http://www.eere.energy.gov/fleetguide/epact2.html). In addition, The table is from the Census Bureau's December 2005 list and use data from the 2000 census.

What fuels and vehicles can be used to satisfy the mandate?  EPAct defines an alternative fuel as any fuel that is substantially non-petroleum and yields energy security and environmental benefits. EPAct currently recognizes the following fuels:  natural gas (compressed or liquid), liquefied petroleum gas (LPG)/Propane), methanol and denatured ethanol as alcohol fuels (alcohol mixtures that contain no less than 70% of the alcohol fuel), hydrogen, coal-derived liquid fuels, fuels derived from biological materials, and electricity (including solar energy). Vehicles designed to run on any of the above alternative fuels may be dedicated or duel-fuel, including bi-fuel and flexible fuel. A mandated fleet can meet up to one-half of its vehicle purchase requirements through the use of biodiesel or biodiesel blends containing a minimum of 20 percent biodiesel. For every 450 gallons of biodiesel purchased for use in vehicles weighing in excess of 8,500 lbs, a fleet is allocated one alternative fuel vehicle acquisition credit under EPAct.

What vehicles are exempt? Vehicles that are exempt from the mandate include law enforcement vehicles, emergency vehicles, non-road vehicles and vehicles used for product evaluations and testing.

Purchasing Requirements:  The requirements listed below apply to the percentage of new vehicle acquisitions that must be AFVs. Dates for the federal requirements are based on the federal fiscal year, while all other dates are based on the vehicle model year.

Energy Policy Act
AFV Purchase Requirements

* Originally, the Energy Policy Act provided the U.S. Energy Secretary with two opportunities to rule on alternative fuel vehicle purchases for local government and private fleets.  If a rulemaking was issued by December 15, 1996, then the percentages in the "early rule" column would apply.  If a rulemaking was not issued until later, (January 1, 2000 deadline), then the percentages in the "late in the "late rule" column would apply.  A local government and private fleet rule has not yet been developed.   Update: In January 2004, the U.S. Department of Energy published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets. More

How are credits earned?  Credits for light-duty vehicles are earned at a rate of one credit per vehicle in excess of the minimum acquisition requirement. One credit may also be allocated for each year the alternative fuel vehicle (AFV) is acquired before the requirement date. Once the fleet's light-duty AFV purchases have been fulfilled, credits may be earned for medium-duty AFVs and heavy-duty AFVs. These credits can be used to satisfy acquisition requirements in subsequent years or sold and traded between fleets.  

Additional Resources:

More information on the Energy Policy Act is available through the U.S. Department of Energy. 

To determine if the federal purchase requirements apply to your fleet, use the Department of Energy's Alternative Fuel Vehicle Fleet Buyer's Guide.

The Clean Fuel Fleet Program, as part of the Clean Air Act Amendments, requires fleets in cities with significant air quality problems to incorporate vehicles that will meet clean-fuel emissions standards. No areas of Washington State are currently affected by this program, but additional information is available.

Court Finds Federal Government Not Meeting Alternative Fuel Vehicle Requirements  A Federal District Court Judge has found that many U.S. government agencies are failing to comply with the alternative fuel vehicle provisions of the Energy Policy Act of 1992. 

DOE Issues Final Decision on Private and Local Government Fleet Mandates  In January 2004, the U.S. Department of Energy published a final rule announcing its decision not to implement an AFV acquisition mandate for private and local government fleets.

The Coalition is grateful to the U.S. Department of Energy for the use of their material describing the Energy Policy Act.