JANUARY 30, 1997

MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

FROM:             Franklin D. Raines,
                          Director

SUBJECT:        E.O. 13031 -- Federal Alternative-Fueled Vehicle Leadership

The President signed Executive Order 13031, "Federal Alternative Fueled Vehicle Leadership" on December 13, 1996 (Attachment 1). This Executive Order reaffirms the Administration's intent to provide leadership in the adoption of alternative-fuel vehicles, and sets forth reporting requirements to ensure that agencies comply with the requirements of the Energy Policy Act of 1992 (EPAct). EPAct requires that 33 percent of the vehicles acquired by Federal agencies in FY 1997 will be alternative-fuel vehicles (AFVs), subject to some conditions and exemptions. That rises to 50 percent in FY 1998, and to 75 percent of vehicle acquisitions in FY 1999. A copy of Title III of the Energy Policy Act of 1992 is attached to this memorandum (Attachment 2).

It is the responsibility of each agency to comply with this law, even if they lease their vehicles from the private sector or from another agency such as the General Services Administration (GSA). Agencies that would like planning assistance may turn to the Department of Energy (DOE) and the GSA.

Agencies should incorporate these requirements into their vehicle ordering plans for the current fiscal year, and into their budget plans for future years. Section 5 of the Executive Order provides a "credit" system whereby agencies that acquire medium-duty and heavy-duty dedicated AFVs and zero-emissions vehicles will be given additional credits toward meeting their requirements.

By February 11, 1997, agencies are required to report to OMB on their compliance with sections 303 and 304 of the Energy Policy Act of 1992. Guidelines for those reports are attached (Attachment 3). Subsequent reports should be submitted with annual agency budget requests to OMB, and updated as necessary after the end of the fiscal year.

The Executive Order expresses this Administration's strong support for alternative-fuel vehicles. Each agency should comply with the Order and with the Energy Policy Act of 1992, and seek technical assistance from DOE and GSA if needed. With your assistance, the Administration can exercise the Federal leadership in promoting the use of AFVs that was envisioned in the Energy Policy Act.

Contacts for additional information:

Specifically on these reporting guidelines:

Randy Steer at OMB
202-395-3164
steer_r@a1.eop.gov

General information on alternative-fueled vehicles:

AFV Hotline
800-423-1363

Federal Fleet AFV issues:

Lee Slezak at DOE
202-586-2335
lee.slezak@hq.doe.gov
    or
Patrick McConnell at GSA
202-501-2362
patrick.mcconnell@gsa.gov

Attachments

Attachment 1
Attachment 2
Attachment 3
Initial Reporting Guidelines for Federal Alternative-Fuel Vehicles
Form for AFV Reporting in Compliance with E.O. 13031

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Energy Policy and Conservation Act, as amended (42 U.S.C. 6201 et seq.), the Energy Policy Act of 1992 (Public Law 102-486) ("the Act"'), and section 301 of Title 3, United States Code, and with the knowledge that the use of alternative fueled motor vehicles will, in many applications, reduce the Nation's dependence on oil, and may create jobs by providing an economic stimulus for domestic industry, and may improve the Nation's air quality by reducing pollutants in the atmosphere, it is hereby ordered as follows:

Section 1. Federal Leadership and Goals.

(a)     The purpose of this order is to ensure that the Federal Government exercise leadership in the use of alternative fueled vehicles (AFVs). To that end, each Federal agency shall develop and implement aggressive plans to fulfill the alternative fueled vehicle acquisition requirements established by the Act. The Act generally requires that, of the vehicles acquired by each agency for its fleets, subject to certain conditions specified in section 303(b)(1) of the Act, 25 percent should be AFVs in fiscal year (FY) 1996, 33 percent in FY 1997, 50 percent in FY 1998, and 75 percent in FY 1999 and thereafter. These requirements apply to all agencies, regardless of whether they lease vehicles from the General Services Administration (GSA) or acquire them elsewhere. That section also defines which Federal agency vehicles are covered by the AFV acquisition requirements; this order applies to the same vehicles, which are primarily general-use vehicles located in metropolitan statistical areas with populations of 250,000 or more.

(b)     To the extent practicable, agencies shall use alternative fuels in all vehicles capable of using them. Agencies shall continue to work together in interagency committees recommended by the Federal Fleet Conversion Task Force established by Executive Order 12844 of April 21, 1993, to coordinate their vehicle acquisitions and placement.

Sec. 2. Submission of Agency Plans and Reports on Statutory Compliance.

(a)     Sixty (60) days after the date of this Executive order, and annually thereafter as part of its budget submission to the Director of the Office of Management and Budget, each agency shall submit a report on its compliance with sections 303 and 304 of the Act. A copy of the report shall also be submitted to the Secretary of Energy and to the Administrator of General Services. The report shall state whether the agency is in compliance with the Act, and substantiate that statement with quantitative data including numbers and types of vehicles acquired and the level of their use. At a minimum, the report shall indicate the number of vehicles acquired or converted for each fuel type and vehicle class, and the total number of vehicles of each fuel type operated by the agency. The Director of the Office of Management and Budget shall issue further reporting guidance as necessary.

(b)    If an agency has failed to meet the statutory requirements, it shall include in its report an explanation for such failure and a plan, consistent with the agency's current and requested budgets, for achieving compliance with the Act. The plan shall include alternative sources of suitable AFVs if the agency's primary vehicle supplier is unable to meet the AFV requirements.

(c)    The Secretary of the Department of Energy and the Administrator of General Services shall cooperatively analyze the agency AFV reports and acquisition plans, and shall submit jointly a summary report to the Director of the Office of Management and Budget.

Sec. 3. Exceptions for Law-Enforcement, Emergency, and National Defense Vehicles. Section 303 of the Act allows exemptions to the acquisition requirements for law-enforcement, emergency, and vehicles acquired and used for military purposes that the Secretary of Defense has certified must be exempt for national security reasons. Law enforcement vehicles shall include vehicles used for protective activities. Each agency that acquires or utilizes any such vehicles shall include in its report an explanation of why an exemption is claimed with respect to such vehicles.

Sec. 4. Fulfilling the Acquisition Requirement.

(a)     Agencies may acquire alternative fueled vehicles to meet the requirements of this order through lease from GSA, acquisition of original equipment manufacturer models, commercial lease, conversion of conventionally fueled vehicles, or any combination of these approaches. All vehicles, including those converted for alternative fuel use, shall comply with all applicable Federal and State emissions and safety standards.

(b)     Based on its own plans and the plans and reports submitted by other agencies, the Administrator of General Services shall provide planning information to potential AFV suppliers to assist in production planning. After consulting with AFV suppliers, the Administrator of General Services shall provide to Federal agencies information on the production plans of AFV suppliers well in advance of budget and ordering cycles.

(c)     As required by section 305 of the Act, the Secretary of Energy, in cooperation with the Administrator of General Services, shall continue to provide technical assistance to other Federal agencies that acquire alternative fueled vehicles and shall facilitate the coordination of the Federal Government's alternative fueled vehicle program.

Sec. 5. Vehicle Reporting Credits. The gains in air quality and energy security that this order seeks to achieve will be even larger if medium- and heavy-duty vehicles are operated on alternative fuels, and if ``zero-emissions vehicles'' (ZEVs) are used. Therefore, for the purposes of this order, agencies may acquire medium- or heavy-duty dedicated alternative fueled vehicles or ZEVs to meet their AFV acquisition requirements, and they shall be given credits for compliance with their AFV targets as follows. Each medium-duty and ZEV shall count the same as two light- duty AFVs, and each dedicated alternative fueled heavy- duty vehicle shall count as three light-duty AFVs. The ZEV credits may be combined with vehicle size credits. The Director of the Office of Management and Budget, in consultation with the Secretary of Energy, shall issue detailed guidance on the classification and reporting of medium-duty, heavy-duty, and ZEVs. In the reports mandated in section 2 of this order, medium- and heavy- duty AFVs and ZEVs shall be identified separately from light-duty vehicles.

Sec. 6. Funding Alternative Fueled Vehicle Acquisition.

(a)     The Department of Energy will no longer request or require specific appropriations to fund the incremental costs of alternative fueled vehicles, including any incremental costs associated with acquisition and disposal, for other agencies. Agencies shall formulate their compliance plans based on existing and requested funds, but shall not be exempt from the requirements of the Act or this order due to limited appropriations.

(b)     An exception regarding funding assistance shall be made for electric vehicles, which are in an earlier stage of development than other alternative fueled vehicles. The Secretary of Energy shall establish a program beginning in FY 1997 to provide partial funding assistance for agency purchases of electric vehicles. Up to $10,000 or one-half the incremental cost over a comparable gasoline-powered vehicle, whichever is less, may be provided as funding assistance for each electric vehicle, subject to the availability of funds.

Sec. 7. Agency Cooperation with Stakeholders on Alternative Fueled Vehicle Placement and Refueling Capabilities. The Secretary of Energy shall work with agencies procuring AFVs to coordinate the placement of their vehicles with the placement of similar vehicles by nonfederal alternative fuel stakeholders. Federal planning and acquisition efforts shall be coordinated with the efforts of the Department of Energy's ``Clean Cities'' participants, private industry fuel suppliers, and fleet operators, and State and local governments to ensure that adequate private sector refueling capabilities exist or will exist wherever Federal fleet alternative fueled vehicles are located. Each agency's fleet managers shall work with appropriate organizations at their respective locations, whether in a ``Clean Cities'' location or not, on initiatives to promote alternative fueled vehicle use and expansion of refueling infrastructure.

Sec. 8. Definitions. For the purpose of this order, the terms "agency," "alternative fueled vehicle," and "alternative fuel" have the same meaning given such terms in sections 151 and 301 of the Act.

Sec. 9. Executive Order 12844. This order supersedes Executive Order 12844.

Sec. 10. Judicial Review. This order is not intended to, and does not, create any right or benefit or trust responsibility, substantive or procedural, enforceable by a party against the United States, its agencies or instrumentalities, its officers or employees, or any other person.

WILLIAM J. CLINTON

THE WHITE HOUSE,
December 13, 1996.

TITLE III -- ALTERNATIVE FUELS -- GENERAL

SEC. 301. DEFINITIONS.
For purposes of this title, title IV, and title V (unless otherwise
specified)--
(1) the term "Administrator" means the Administrator of the
Environmental Protection Agency;
(2) the term "alternative fuel" means methanol, denatured ethanol,
and other alcohols; mixtures containing 85 percent or more (or such other
percentage, but not less than 70 percent, as determined by the Secretary,
by rule, to provide for requirements relating to cold start, safety, or
vehicle functions) by volume of methanol, denatured ethanol, and other
alcohols with gasoline or other fuels; natural gas; liquefied petroleum
gas; hydrogen; coal-derived liquid fuels; fuels (other than alcohol)
derived from biological materials; electricity (including electricity
from solar energy); and any other fuel the Secretary determines, by rule,
is substantially not petroleum and would yield substantial energy
security benefits and substantial environmental benefits;
(3) the term "alternative fueled vehicle" means a dedicated vehicle
or a dual fueled vehicle;
(4) the term "comparable conventionally fueled motor vehicle" means a
motor vehicle which is, as determined by the Secretary--
(A) commercially available at the time the comparability of the
vehicle is being assessed;
(B) powered by an internal combustion engine that utilizes
gasoline or diesel fuel as its fuel source; and
(C) provides passenger capacity or payload capacity the same or
similar to the alternative fueled vehicle to which it is being
compared;
(5) "covered person" means a person that owns, operates, leases, or
otherwise controls--
(A) a fleet that contains at least 20 motor vehicles that are
centrally fueled or capable of being centrally fueled, and are used
primarily within a metropolitan statistical area or a consolidated
metropolitan statistical area, as established by the Bureau of the
Census, with a 1980 population of 250,000 or more; and
(B) at least 50 motor vehicles within the United States;
(6) the term "dedicated vehicle" means--
(A) a dedicated automobile, as such term is defined in section
513(h)(1)(C) of the Motor Vehicle Information and Cost Savings Act;
or
(B) a motor vehicle, other than an automobile, that operates
solely on alternative fuel;
(7) the term "domestic" means derived from resources within the
several States, the District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, or any other Commonwealth,
territory, or possession of the United States, including the outer
Continental Shelf, as such term is defined in the Outer Continental Shelf
Lands Act, or from resources within a Nation with which there is in
effect a free trade agreement requiring national treatment for trade;
(8) the term "dual fueled vehicle" means--
(A) dual fueled automobile, as such term is defined in section
513(h)(1)(D) of the Motor Vehicle Information and Cost Savings Act;
or
(B) a motor vehicle, other than an automobile, that is capable of
operating on alternative fuel and is capable of operating on gasoline
or diesel fuel;
(9) the term "fleet" means a group of 20 or more light duty motor
vehicles, used primarily in a metropolitan statistical area or
consolidated metropolitan statistical area, as established by the Bureau
of the Census, with a 1980 population of more than 250,000, that are
centrally fueled or capable of being centrally fueled and are owned,
operated, leased, or otherwise controlled by a governmental entity or
other person who owns, operates, leases, or otherwise controls 50 or more
such vehicles, by any person who controls such person, by any person
controlled by such person, and by any person under common control with
such person, except that such term does not include--
(A) motor vehicles held for lease or rental to the general
public;
(B) motor vehicles held for sale by motor vehicle dealers,
including demonstration motor vehicles;
(C) motor vehicles used for motor vehicle manufacturer product
evaluations or tests;
(D) law enforcement motor vehicles;
(E) emergency motor vehicles;
(F) motor vehicles acquired and used for military purposes that
the Secretary of Defense has certified to the Secretary must be
exempt for national security reasons;
(G) nonroad vehicles, including farm and construction motor
vehicles; or
(H) motor vehicles which under normal operations are garaged at
personal residences at night;
(10) the term "fuel supplier" means--
(A) any person engaged in the importing, refining, or processing
of crude oil to produce motor fuel;
(B) any person engaged in the importation, production, storage,
transportation, distribution, or sale of motor fuel; and
(C) any person engaged in generating, transmitting, importing, or
selling at wholesale or retail electricity;
(11) the term "light duty motor vehicle" means a light duty truck or
light duty vehicle, as such terms are defined under section 216(7) of the
Clean Air Act (42 U.S.C. 7550(7)), of less than or equal to 8,500 pounds
gross vehicle weight rating;
(12) the term "motor fuel" means any substance suitable as a fuel for
a motor vehicle;
(13) the term "motor vehicle" has the meaning given such term under
section 216(2) of the Clean Air Act (42 U.S.C. 7550(2)); and
(14) the term "replacement fuel" means the portion of any motor fuel
that is methanol, ethanol, or other alcohols, natural gas, liquefied
petroleum gas, hydrogen, coal derived liquid fuels, fuels (other than
alcohol) derived from biological materials, electricity (including
electricity from solar energy), ethers, or any other fuel the Secretary
determines, by rule, is substantially not petroleum and would yield
substantial energy security benefits and substantial environmental
benefits.

SEC. 302. AMENDMENTS TO THE ENERGY POLICY AND CONSERVATION ACT.
(a) Amendments.--Section 400AA of the Energy Policy and Conservation Act
(42 U.S.C. 6374) is amended--
(1) in subsection (a)(1)--
(A) by striking "passenger automobiles and light duty trucks" and
inserting in lieu thereof "vehicles"; and
(B) by striking "alcohol powered vehicles, dual energy vehicles,
natural gas powered vehicles, or natural gas dual energy vehicles."
and inserting in lieu thereof "alternative fueled vehicles. In no
event shall the number of such vehicles acquired be less than the
number required under section 303 of the Energy Policy Act of 1992.";
(2) by amending subsection (a)(3) to read as follows:
"(3)(A) To the extent practicable, the Secretary shall acquire both
dedicated and dual fueled vehicles, and shall ensure that each type of
alternative fueled vehicle is used by the Federal Government.
"(B) Vehicles acquired under this section shall be acquired from original
equipment manufacturers. If such vehicles are not available from original
equipment manufacturers, vehicles converted to use alternative fuels may be
acquired if, after conversion, the original equipment manufacturer's warranty
continues to apply to such vehicles, pursuant to an agreement between the
original equipment manufacturer and the person performing the conversion.
This subparagraph shall not apply to vehicles acquired by the United States
Postal Service pursuant to a contract entered into by the United States
Postal Service before the date of enactment of this subparagraph and which
terminates on or before December 31, 1997.
"(C) Alternative fueled vehicles, other than those described in
subparagraph (B), may be acquired solely for the purposes of studies under
subsection (b), whether or not original equipment manufacturer warranties
still apply.
"(D) In deciding which types of alternative fueled vehicles to acquire in
implementing this part, the Secretary shall consider as a factor--
"(i) which types of vehicles yield the greatest reduction in
pollutants emitted per dollar spent; and
"(ii) the source of the fuel to supply the vehicles, giving
preference to vehicles that operate on alternative fuels derived from
domestic sources.
"(E) Dual fueled vehicles acquired pursuant to this section shall be
operated on alternative fuels unless the Secretary determines that operation
on such alternative fuels is not feasible.
"(F) At least 50 percent of the alternative fuels used in vehicles
acquired pursuant to this section shall be derived from domestic feedstocks,
except to the extent inconsistent with the General Agreement on Tariffs and
Trade. The Secretary shall issue regulations to implement this requirement.
For purposes of this subparagraph, the term 'domestic' has the meaning given
such term in section 301(7) of the Energy Policy Act of 1992.
"(G) Except to the extent inconsistent with the General Agreement on
Tariffs and Trade, vehicles acquired under this section shall be motor
vehicles manufactured in the United States or Canada.";
(3) by adding at the end of subsection (a) the following new
paragraph:
"(4) Acquisitions of vehicles under this section shall, to the extent
practicable, be coordinated with acquisitions of alternative fueled vehicles
by State and local governments.";
(4) in subsection (b), by inserting after paragraph (2) the following
new paragraphs:
"(3)(A) The Secretary, in cooperation with the Environmental Protection
Agency and the Department of Transportation, shall collect data and conduct a
study of heavy duty vehicles acquired under subsection (a), which shall at a
minimum address--
"(i) the performance of such vehicles, including reliability,
durability, and performance in cold weather and at high altitude;
"(ii) the fuel economy, safety, and emissions of such vehicles; and
"(iii) a comparison of the operation and maintenance costs of such
vehicles to the operation and maintenance costs of conventionally fueled
heavy duty vehicles.
"(B) The Secretary shall provide a report on the results of the study
conducted under subparagraph (A) to the Committees on Commerce, Science, and
Transportation, Governmental Affairs, and Energy and Natural Resources of the
Senate, and the Committees on Energy and Commerce and Government Operations
of the House of Representatives, within one year after the first such
vehicles are acquired, and annually thereafter.
"(4)(A) The Secretary and the Administrator of the General Services
Administration shall conduct a study of the advisability, feasibility, and
timing of the disposal of heavy duty vehicles acquired under subsection (a)
and any problems with such disposal. Such study shall take into account
existing laws governing the sale of Government vehicles and shall
specifically focus on when to sell such vehicles and what price to charge.
"(B) The Secretary and the Administrator of the General Services
Administration shall report the results of the study conducted under
subparagraph (A) to the Committees on Commerce, Science, and Transportation,
Governmental Affairs, and Energy and Natural Resources of the Senate, and the
Committee on Energy and Commerce and the Committee on Government Operations
of the House of Representatives, within one year after funds are appropriated
for carrying out this paragraph.
"(5) Studies undertaken under this subsection shall be coordinated with
relevant testing activities of the Environmental Protection Agency and the
Department of Transportation.";
(5) in subsection (c)--
(A) by striking "alcohol or natural gas, alcohol or natural gas"
and inserting in lieu thereof "alternative fuels, such fuels"; and
(B) by striking "alcohol or natural gas" and inserting in lieu
thereof "alternative fuel" in paragraph (1);
(6) in subsection (d)(2)(B), by striking "The Secretary" and
inserting in lieu thereof "To the extent that appropriations are
available for such purposes, the Secretary";
(7) in subsection (g), by striking paragraphs (2) through (6) and
inserting in lieu thereof the following:
"(2) the term "alternative fuel" means methanol, denatured ethanol,
and other alcohols; mixtures containing 85 percent or more (or such other
percentage, but not less than 70 percent, as determined by the Secretary,
by rule, to provide for requirements relating to cold start, safety, or
vehicle functions) by volume of methanol, denatured ethanol, and other
alcohols with gasoline or other fuels; natural gas; liquefied petroleum
gas; hydrogen; coal-derived liquid fuels; fuels (other than alcohol)
derived from biological materials; electricity (including electricity
from solar energy); and any other fuel the Secretary determines, by rule,
is substantially not petroleum and would yield substantial energy
security benefits and substantial environmental benefits;
"(3) the term 'alternative fueled vehicle' means a dedicated vehicle
or a dual fueled vehicle;
"(4) the term 'dedicated vehicle' means--
"(A) a dedicated automobile, as such term is defined in section
513(h)(1)(C) of the Motor Vehicle Information and Cost Savings Act;
or
"(B) a motor vehicle, other than an automobile, that operates
solely on alternative fuel;
"(5) the term 'dual fueled vehicle' means--
"(A) dual fueled automobile, as such term is defined in section
513(h)(1)(D) of the Motor Vehicle Information and Cost Savings Act;
or
"(B) a motor vehicle, other than an automobile, that is capable
of operating on alternative fuel and is capable of operating on
gasoline or diesel fuel; and
"(6) the term 'heavy duty vehicle' means a vehicle of greater than
8,500 pounds gross vehicle weight rating."; and
(8) by amending subsection (i)(1) to read as follows: "(1) For the
purposes of this section, there are authorized to be appropriated such
sums as may be necessary for fiscal years 1993 through 1998, to remain
available until expended.".
(b) Repeal of Termination Date.--Section 4(b) of the Alternative Motor
Fuels Act of 1988 is repealed.

SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.
(a) General Requirements.--(1) The Federal Government shall acquire at
least--
(A) 5,000 light duty alternative fueled vehicles in fiscal year 1993;
(B) 7,500 light duty alternative fueled vehicles in fiscal year 1994;
and
(C) 10,000 light duty alternative fueled vehicles in fiscal year
1995.
(2) The Secretary shall allocate the acquisitions necessary to meet the
requirements under paragraph (1).
(b) Percentage Requirements.--(1) Of the total number of vehicles
acquired by a Federal fleet, at least--
(A) 25 percent in fiscal year 1996;
(B) 33 percent in fiscal year 1997;
(C) 50 percent in fiscal year 1998; and
(D) 75 percent in fiscal year 1999 and thereafter,
shall be alternative fueled vehicles.
(2) The Secretary, in consultation with the Administrator of General
Services where appropriate, may permit a Federal fleet to acquire a smaller
percentage than is required in paragraph (1), so long as the aggregate
percentage acquired by all Federal fleets is at least equal to the required
percentage.
(3) For purposes of this subsection, the term "Federal fleet" means 20 or
more light duty motor vehicles, located in a metropolitan statistical area or
consolidated metropolitan statistical area, as established by the Bureau of
the Census, with a 1980 population of more than 250,000, that are centrally
fueled or capable of being centrally fueled and are owned, operated, leased,
or otherwise controlled by or assigned to any Federal executive department,
military department, Government corporation, independent establishment, or
executive agency, the United States Postal Service, the Congress, the courts
of the United States, or the Executive Office of the President. Such term
does not include--
(A) motor vehicles held for lease or rental to the general public;
(B) motor vehicles used for motor vehicle manufacturer product
evaluations or tests;
(C) law enforcement vehicles;
(D) emergency vehicles;
(E) motor vehicles acquired and used for military purposes that the
Secretary of Defense has certified to the Secretary must be exempt for
national security reasons; or
(F) nonroad vehicles, including farm and construction vehicles.
(c) Allocation of Incremental Costs.--The General Services Administration
and any other Federal agency that procures motor vehicles for distribution to
other Federal agencies may allocate the incremental cost of alternative
fueled vehicles over the cost of comparable gasoline vehicles across the
entire fleet of motor vehicles distributed by such agency.
(d) Application of Requirements.--The provisions of section 400AA of the
Energy Policy and Conservation Act relating to the Federal acquisition of
alternative fueled vehicles shall apply to the acquisition of vehicles
pursuant to this section.
(e) Resale.--The Administrator of General Services shall take all
feasible steps to ensure that all alternative fueled vehicles sold by the
Federal Government shall remain alternative fueled vehicles at time of sale.
(f) Authorization of Appropriations.--There are authorized to be
appropriated for carrying out this section, such sums as may be necessary for
fiscal years 1993 through 1998, to remain available until expended.

SEC. 304. REFUELING.
(a) In General.--Federal agencies shall, to the maximum extent
practicable, arrange for the fueling of alternative fueled vehicles acquired
under section 303 at commercial fueling facilities that offer alternative
fuels for sale to the public. If publicly available fueling facilities are
not convenient or accessible to the location of Federal alternative fueled
vehicles purchased under section 303, Federal agencies are authorized to
enter into commercial arrangements for the purposes of fueling Federal
alternative fueled vehicles, including, as appropriate, purchase, lease,
contract, construction, or other arrangements in which the Federal Government
is a participant.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary for carrying out this section such sums as may
be necessary for fiscal years 1993 through 1998, to remain available until
expended.

SEC. 305. FEDERAL AGENCY PROMOTION, EDUCATION, AND COORDINATION.
(a) Promotion and Education.--The Secretary, in cooperation with the
Administrator of General Services, shall promote programs and educate
officials and employees of Federal agencies on the merits of alternative
fueled vehicles. The Secretary, in cooperation with the Administrator of
General Services, shall provide and disseminate information to Federal
agencies on--
(1) the location of refueling and maintenance facilities available to
alternative fueled vehicles in the Federal fleet;
(2) the range and performance capabilities of alternative fueled
vehicles;
(3) State and local government and commercial alternative fueled
vehicle programs;
(4) Federal alternative fueled vehicle purchases and placements;
(5) the operation and maintenance of alternative fueled vehicles in
accordance with the manufacturer's standards and recommendations; and
(6) incentive programs established pursuant to sections 306 and 307
of this Act.
(b) Assistance in Procurement and Placement.--The Secretary, in
cooperation with the Administrator of General Services, shall provide
guidance, coordination and technical assistance to Federal agencies in the
procurement and geographic location of alternative fueled vehicles purchased
through the Administrator of General Services. The procurement and geographic
location of such vehicles shall comply with the purchase requirements under
section 303 of this Act.

SEC. 306. AGENCY INCENTIVES PROGRAM.
(a) Reduction in Rates.--To encourage and promote use of alternative
fueled vehicles in Federal agencies, the Administrator of General Services
may offer a reduction in fees charged to agencies for the lease of
alternative fueled vehicles below those fees charged for the lease of
comparable conventionally fueled motor vehicles.
(b) Sunset Provision.--This section shall cease to be effective 3 years
after the date of the enactment of this Act.

SEC. 307. RECOGNITION AND INCENTIVE AWARDS PROGRAM.
(a) Awards Program.--The Administrator of General Services shall
establish annual awards program to recognize those Federal employees who
demonstrate the strongest commitment to the use of alternative fuels and fuel
conservation in Federal motor vehicles.
(b) Criteria.--The Administrator of General Services shall provide annual
awards to Federal employees who best demonstrate a commitment--
(1) to the success of the Federal alternative fueled vehicle program
through--
(A) exemplary promotion of alternative fueled vehicle use within
Federal agencies;
(B) proper alternative fueled vehicle care and maintenance;
(C) coordination with Federal, State, and local efforts;
(D) innovative alternative fueled vehicle procurement, refueling,
and maintenance arrangements with commercial entities;
(E) making regular requests for alternative fueled vehicles for
agency use; and
(F) maintaining a high number of alternative fueled vehicles used
relative to comparable conventionally fueled motor vehicles used; and
(2) to fuel efficiency in Federal motor vehicle use through the
promotion of such measures as increased use of fuel-efficient vehicles,
carpooling, ride-sharing, regular maintenance, and other conservation and
awareness measures.
(c) Authorization of Appropriations.--There are authorized to be
appropriated for the purpose of carrying out this section not more than
$35,000 for fiscal year 1994 and such sums as may be necessary for each of
the fiscal years 1995 and 1996.

SEC. 308. MEASUREMENT OF ALTERNATIVE FUEL USE.
The Administrator of General Services shall use such means as may be
necessary to measure the percentage of alternative fuel use in dual-fueled
vehicles procured by the Administrator of General Services. Not later than
one year after the date of the enactment of this Act, the Secretary, in
consultation with the Administrator of General Services, shall issue
guidelines to Federal agencies for use in measuring the aggregate percentage
of alternative fuel use in dual-fueled vehicles in their fleets.

SEC. 309. INFORMATION COLLECTION.
Section 400AA(b)(1)(A) of the Energy Policy and Conservation Act is
amended by striking "the vehicles acquired under subsection (a)" and
inserting in lieu thereof "a representative sample of alternative fueled
vehicles in Federal fleets".

SEC. 310. GENERAL SERVICES ADMINISTRATION REPORT.
Not later than one year after the date of the enactment of this Act, and
biennially thereafter, the Administrator of General Services shall report to
the Congress on the General Services Administration's alternative fueled
vehicle program under this Act. The report shall contain information on--
(1) the number and type of alternative fueled vehicles procured;
(2) the location of alternative fueled vehicles by standard Federal
region;
(3) the total number of alternative fueled vehicles used by each
Federal agency;
(4) arrangements with commercial entities for refueling and
maintenance of alternative fueled vehicles;
(5) future alternative fueled vehicle procurement and placement
strategy;
(6) the difference in cost between the purchase, maintenance, and
operation of alternative fueled vehicles and the purchase, maintenance,
and operation of comparable conventionally fueled motor vehicles;
(7) coordination among Federal, State, and local governments for
alternative fueled vehicle procurement and placement;
(8) the percentage of alternative fuel use in dual-fueled vehicles
procured by the Administrator of General Services as measured under
section 308;
(9) a description of the representative sample of alternative fueled
vehicles as determined under section 400AA(b)(1)(A) of the Energy Policy
and Conservation Act; and
(10) award recipients under this title.

SEC. 311. UNITED STATES POSTAL SERVICE.
(a) Report.--Not later than one year after the date of the enactment of
this Act, and biennially thereafter, the Postmaster General shall submit a
report to the Congress on the Postal Service's alternative fueled vehicle
program. The report shall contain information on--
(1) the total number and type of alternative fueled vehicles procured
prior to the date of the enactment of this Act (first report only);
(2) the number and type of alternative fueled vehicles procured in
the preceding year;
(3) the location of alternative fueled vehicles by region;
(4) arrangements with commercial entities for purposes of refueling
and maintenance;
(5) future alternative fuel procurement and placement strategy;
(6) the difference in cost between the purchase, maintenance, and
operation of alternative fueled vehicles and the purchase, maintenance,
and operation of comparable conventionally fueled motor vehicles;
(7) the percentage of alternative fuel use in dual-fueled vehicles
procured by the Postmaster General;
(8) promotions and incentives to encourage the use of alternative
fuels in dual-fueled vehicles; and
(9) an assessment of the program's relative success and policy
recommendations for strengthening the program.
(b) Coordination.--To the maximum extent practicable, the Postmaster
General shall coordinate the Postal Service's alternative fueled vehicle
procurement, placement, refueling, and maintenance programs with those at the
Federal, State, and local level. The Postmaster General shall communicate,
share, and disseminate, on a regular basis, information on such programs with
the Secretary, the Administrator of General Services, and heads of
appropriate Federal agencies.
(c) Program Criteria.--The Postmaster General shall consider the
following criteria in the procurement and placement of alternative fueled
vehicles:
(1) The procurement plans of State and local governments and other
public and private institutions.
(2) The current and future availability of refueling and repair
facilities.
(3) The reduction in emissions of the Postal fleet.
(4) Whether the vehicle is to be used in a nonattainment area as
specified in the Clean Air Act Amendments of 1990.
(5) The operational requirements of the Postal fleet.
(6) The contribution to the reduction in the consumption of oil in
the transportation sector.

Submit one copy of this report to your normal OMB budget contact, and one copy (with an electronic copy of the worksheet if possible) to:

Randy Steer
OMB Energy and Science Division
NEOB Room 8025
Washington, DC 20503

voice: 202-395-3164
fax: 202-395-1086
e-mail: steer_r@a1.eop.gov ("a-one", not "al")

The electronic copy of the worksheet can be sent as a diskette or as a MIME Internet e-mail attachment. Blank copies of the worksheet are available as part of the text of this document in WordPerfect 6.1 and 5.1 formats on the OMB Web site, and are also available as stand-alone tables in Excel 4 and 5 and Lotus 1-2-3 WK1 and WK3 formats. The Web address (URL) will be:

Executive Order 13031, "Federal Alternative Fueled Vehicle Leadership", signed on December 13, 1996, requires the Office of Management and Budget to issue reporting guidance to agencies as necessary. This document represents the first version of such guidance, and applies to the reports required of agencies 60 days after the issuance of the Executive Order, i.e. February 11, 1997.

Time Periods Covered

Each agency shall provide actual alternative-fuel vehicle (AFV) acquisition data for FY 1996 and estimated/planned acquisition data for FY 1997 and FY 1998. Report vehicles in the year in which they were ordered, not delivered. (Submit three copies of the attached reporting form, one for each reporting year.) In addition, data should be provided on the total vehicle stock in the agency's fleet and the total number of AFVs in the vehicle stock.

Leased vs. Purchased Vehicles

Agency reports should identify separately how many vehicles have been or will be purchased vs. how many have been or will be leased, but compliance with the AFV percentage acquisition targets is based on total covered vehicles -- the percentages need not apply identically to both types of acquisitions. The reports should include a worksheet that indicates how the percentages are calculated. A sample worksheet is attached. The worksheet, along with these instructions, may be viewed and downloaded from the OMB Web site at:

Explanation of Exemptions

The Energy Policy Act of 1992 and the Executive Order provide for two types of exemptions; one for law enforcement and national security vehicles, and another for vehicles located outside metropolitan areas.

The first category, more specifically, covers law-enforcement vehicles (including vehicles used for protective services) and for vehicles that the Secretary of Defense has certified are used for military purposes and must be exempt for national security reasons. If an agency is claiming any exemptions under these provisions, they should submit a brief explanation of the numbers and types of vehicles being exempted and the justification. (E.g. "50 mid-size sedans exempted because they provide protective services to embassies; 200 full-size sedans, minivans, and light trucks exempted for field agent and surveillance use.") That example provides adequate detail to justify the exemptions, while providing sufficient aggregation to prevent specific law-enforcement vehicles from being identified.

The second category of EPAct exemptions covers vehicles acquired for use outside of Metropolitan Statistical Areas with populations of at least 250,000. Each agency should provide a brief summary of the numbers and sizes of vehicles which are claimed under this exemption. For purposes of this report, agencies should use the most recent available Census data on MSAs, which is from 1995. A list of MSAs covered can be provided on request, and is available on the OMB Web site at:

Each vehicle can only be counted once for exemption purposes; i.e. a rural military law-enforcement vehicle counts as one exemption, not three.

Acquisition Compliance Plans

If an agency has not met its statutory AFV percentage requirements in FY 1996, in addition to reporting numbers of vehicles the agency must also include a management plan for coming into compliance with the statutory requirements. That plan must indicate what vehicles would be leased, purchased, or converted; what sources would be for the leased and purchased vehicles; and what funding sources the agency intends to use. This plan, along with any refinements necessary to the raw data on past and planned AFV acquisitions, must indicate the management and procurement steps that the agency will take to bring its AFV acquisitions in future years up to the EPAct requirements.

Special Vehicle Credits

The Executive Order provides for "credits" when an agency buys certain classes of dedicated alternative-fuel vehicles. Medium-duty vehicles (Department of Transportation (DOT) weight classes 3-6) each count as two light-duty vehicles in reporting on the acquisition targets. Heavy-duty vehicles (DOT classes 7-8) each count as three light-duty vehicles. Zero emissions vehicles (ZEVs) -- i.e. electric vehicles and potentially hydrogen vehicles -- count as two light-duty vehicles. The ZEV credit may be added to a medium- or heavy-duty vehicle credit, so that if, for instance, an agency acquires a heavy-duty ZEV, it would count as 5 light-duty AFVs.

Alternative Fuel Usage Reporting

The Federal Energy Management Program (FEMP) and the Energy Information Administration (EIA) currently collect data on alternative fuel usage; if an agency has the information they have submitted to FEMP or EIA, attaching a copy of that will indicate the degree to which the agency's AFVs are operated on alternative fuels. If no FEMP or EIA report is available, each agency should report their best estimates of purchases of each category of alternative fuel that they use, either in terms of dollars or fuel quantities. This reporting is only needed for the fiscal year just completed prior to the submission of the report.

Background information on AFVs, including refueling site maps, can be found at http://www.afdc.doe.gov .

Form for AFV Reporting in Compliance with E.O. 13031

(Dept or agency)_______________________________ AFV Acquisition Report for FY 19___