Guidance for Implementing Section 141 of the

   Energy Independence and Security Act of 2007


   Federal Vehicle Fleets and Low Greenhouse Gas-Emitting

   Vehicles
United States
Environmental Protection
Agency

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               Guidance for Implementing Section 141 of the

               Energy Independence and Security Act of 2007


               Federal Vehicle Fleets and Low Greenhouse Gas-Emitting
                                     Vehicles
                            SmartWay Transport Partnership Program
                           Transportation and Regional Programs Division
                             Office of Transportation and Air Quality
                             U.S. Environmental Protection Agency
                               Issuance Date: February 22,2010
SER&
United States
Environmental Protection
Agency
EPA-420-B-10-008
February 2010

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Table of Contents

Acronyms and Abbreviations	ii
Background	1
I.    What does EISA § 141 require of federal agencies?	1
II.   Is my agency subject to EISA § 141?	2
III.  Does EISA § 141 apply to all individual vehicle acquisitions or only vehicles associated with
     Federal fleets as defined by section 303(b)(3) of EPAct92 (42 U.S.C. § 13212(b)(3))?	2
IV.  How does EPA quantify the tailpipe GHG emissions from light-duty motor vehicles?	2
V.   What is a low GHG-emitting vehicle as it applies to EISA § 141?	4
VI.  How do I find and identify vehicles that are low GHG-emitting vehicles?	5
VII.  Why do some vehicles on the Green Vehicle Guide have two GHG scores?	6
VIII. What if a vehicle intended for acquisition is not listed on EPA's Green Vehicle Guide?	6
IX.  Will a vehicle's GHG score ever change?	7
X.   Are there exceptions to the requirement to acquire only low GHG-emitting vehicles?	7
   A.   How does the "functional needs" exception work?	8
   B.   How does the "alternative measures" exception work?	9
     i.    Under the alternative measures exception, can a federal agency assess the aggregate GHG
          emissions from all of its acquired vehicles to determine the quantity of emissions that must be
          reduced?	10
   C.   Are the aggregate GHG emissions for an agency's fleet nationwide or is it quantified based on a
       metropolitan  statistical area  (MSA) or consolidated metropolitan  statistical area (CMSA) for a
       federal fleet?	12
XI.  What are  Electric Vehicles (EVs) and how  are they included in this guidance document?	12
   A.   Are Neighborhood Electric Vehicles (NEVs) included as EVs?	13
XII.  What if the vehicle that I am interested in purchasing only qualifies as a low GHG-emitting vehicle
     using an alternative fuel?	13
XIII. How do the requirements of EISA § 141  interact with the requirements of EPAct92 § 303(b) 	
     (42 U.S.C. § 13212(b))?	14
XIV. How are MDPVs addressed?	16
XV.  Are government-owned contractor-operated vehicles included?	16
XVI. What about vehicles purchased in the United States and operated outside of the United States? .... 17
XVII.What if my agency wants to acquire vehicles that are from a model year prior to model year 2010? .
          	17
XVIII.What are the recordkeeping requirements?	17
XIX. What are  the reporting requirements?	18
XX.  Contact Information	18
Appendix A	I
Appendix B	Ill

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Acronyms and Abbreviations
AFV
C.F.R.
CH4
CMSA
CNG
CO
CO2
CO2e
DOE
E85
EIA
EISA
E.G.
EPA
EPAct2005
EPAct92
EV
FAST
FFV
FR
g/mi.
GHG
GVWR
GREET
GSA
HEV
HFC
kWh
Lbs.
LPG
MDPV
MPG
MPH
MSA
NDAA2008
NEV
NOX
PHEV
PM
THC
U.S.C.
VMT
Alternative Fuel Vehicle
Code of Federal Regulations
Methane
Consolidated Metropolitan Statistical Area
Compressed Natural Gas
Carbon Monoxide
Carbon Dioxide
Carbon Dioxide Equivalent
U.S. Department of Energy
Fuel that is 85% ethanol, 15% gasoline
Energy Information Administration
Energy Independence and Security Act of 2007
Executive Order
U.S. Environmental Protection Agency
Energy Policy Act of 2005
Energy Policy Act of 1992
Electric Vehicle
Federal Automotive Statistical Tool
Flexible Fuel Vehicle
Federal Register
Grams Per Mile
Greenhouse Gas
Gross Vehicle Weight Rating
Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation model
U.S. General Services Administration
Hybrid Electric Vehicle
Hydrofluorocarbons
Kilowatt Hour
Pounds
Liquefied Petroleum Gas (Propane)
Medium Duty Passenger Vehicle
Miles Per Gallon
Miles Per Hour
Metropolitan Statistical Area
National Defense Authorization Act of 2008
Neighborhood Electric Vehicle
Oxides of Nitrogen
Plug-in Hybrid Electric Vehicle
Particulate Matter
Total Hydrocarbons
United States Code
Vehicle Miles Traveled
                                      11

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Background

Section 141 of the Energy Independence and Security Act of 2007 (EISA) entitled "Federal
Vehicle Fleets," amends section 303 of the Energy Policy Act of 1992 (EPAct92) (42 U.S.C.
§ 13212). It supports the goal of reducing greenhouse gas (GHG) emissions by prohibiting
federal agencies from acquiring light-duty motor vehicles and medium duty passenger vehicles
(MDPVs) that are not low GHG-emitting vehicles. This guidance document applies to federal
agencies only. This guidance document does not apply to fuel provider fleets or state agency
fleets subject to EPAct92 §§ 501 and 507.

In order to facilitate the purchase of low GHG-emitting vehicles by the federal government,
EISA § 141 directs the Administrator of the Environmental Protection Agency (EPA) to define
what a low GHG-emitting vehicle is and to identify annually the makes and models of such
vehicles. This guidance explains the criteria EPA uses to identify low GHG-emitting vehicles,
directs federal agencies to EPA's web-based Green Vehicle Guide for up-to-date information
about light-duty motor vehicles certified for sale in the United States, and provides the necessary
information and resources for federal agencies to implement EISA §  141. Mandatory language is
not used in this guidance document except where the EPA is using such language to describe or
interpret a statutory requirement.

I.      What does EISA § 141 require of federal agencies?

Section 141 prohibits federal agencies from acquiring (purchasing, leasing, or acquiring through
transfer, including replacement vehicles) light-duty motor vehicles and MDPVs that are not low
GHG-emitting vehicles. Vehicles covered by EISA § 141 include only newly acquired motor
vehicles and not an agency's existing mix of motor vehicles. This guidance document applies to
acquisitions made after its issuance date. EISA § 141 does not apply to vehicles forfeited to or
confiscated by law enforcement agencies. A motor vehicle1, as defined by 40 C.F.R. § 85.1703,
is a vehicle that is self-propelled and capable of transporting a person, persons, any materials, or
any permanently or temporarily affixed apparatus, and, among other things, is capable of
exceeding 25 miles per hour (mph) over level, paved surfaces. Section 301(11) of EPAct92 (42
U.S.C. § 13211(11)) defines light-duty motor vehicle to include both light-duty vehicles and
light-duty trucks as defined by 40 C.F.R. § 86.1803-01. Therefore, in this guidance document,
the term light-duty motor vehicle includes passenger cars, and, depending on their gross vehicle
weight rating (GVWR), pickup trucks, minivans, passenger vans and sport-utility vehicles.
Examples of passenger cars include Pontiac G5, Chevrolet Malibu, Ford Focus, Chrysler Sebring
and Dodge Avenger. Examples of light-duty trucks include Chevrolet HHR, Saturn Vue, Ford
Ranger and Jeep Patriot. Please note that vehicles with a  GVWR between 8,500 Ibs. and 10,000
Ibs. designed to transport primarily persons are MDPVs as defined by 40 C.F.R. § 86.1803-01.
Examples of MDPVs include certain configurations  of the Ford Expedition, Ford Club Wagon,
Chevrolet Suburban and GMC  Yukon. Heavy duty trucks (e.g.,  pickup trucks and non-passenger
vans over 8,500 Ibs. GVWR or 6,000 Ibs. curb weight) are outside the scope of § 141  and,
therefore, are not addressed by  this guidance document.
1 All motor vehicles manufactured for sale in the U.S. are required to be certified in accordance with 40 C.F.R. Part
86 to show its ability to comply with federal vehicle emission standards.

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II.     Is my agency subject to EISA § 141?

Section 141 applies to all federal agencies, except for offices of the legislative branch, but
includes the U.S. House of Representatives when vehicles are acquired using a Member's
Representational Allowance. Federal agencies include offices of the judicial branch and
executive branch including executive departments, independent establishments and government
corporations.

For a list of federal agencies please use The United States Government Manual (2008/2009),
which can be found at www.gpoaccess.gov/gmanual/index.html. Specifically, the list can be
found at www.gpoaccess.gov/gmanual/browse-gm-08.html. For purposes of this guidance
document, Members of the U.S. House of Representatives are included in the term "agency."

III.    Does EISA § 141 apply to all individual vehicle acquisitions or only vehicles
       associated with Federal fleets as defined by section 303(b)(3) of EPAct92 (42 U.S.C.
       § 13212(b)(3))?

Section 303(b)(3) of EPAct92 (42 U.S.C. § 13212(b)(3)), for applicability purposes,  defines
"Federal fleet" to mean "a group of 20 or more light-duty motor vehicles, located in a
metropolitan statistical area or consolidated metropolitan statistical area, ..., 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 - (D) law enforcement motor vehicles; (E) emergency motor vehicles; and (F)
motor vehicles acquired and used for military purposes that the Secretary of Defense has
certified to the Secretary [of Energy] must be exempt for national security reasons;..."

However, EISA § 141, which amends EPAct92 § 303 (42 U.S.C. § 13212), is written in terms of
individual "vehicles," not fleets. The central command of the provision prohibits the acquisition
of individual "vehicles" that are not low GHG-emitting. Furthermore, the exceptions to the
prohibition are written in terms of individual vehicles. If an agency elects to utilize one of the
exceptions described in section X of this guidance document, the agency head is required to
provide separate certification for each individual vehicle purchased, without regard to whether
that vehicle is part of a fleet. In addition, the provision applies to medium duty passenger
vehicles, which are not included in a Federal fleet, and vehicles acquired by members of the U.S.
House of Representatives, who do not operate a Federal fleet.

For these reasons, EPA's statement of individual vehicle applicability is permissible. EISA §  141
covers all individual light-duty motor vehicles and MDPVs acquired by a federal agency,
regardless of the size and location of its fleet(s).

IV.    How does EPA quantify the tailpipe GHG emissions from  light-duty motor vehicles?

The greenhouse gases carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) are  emitted
from an operating motor vehicle's tailpipe. Factoring in the global warming potential of each gas

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provides a vehicle's CO2 equivalent (CO2e) emissions. A vehicle's CO2e emissions are
indicative of its energy consumption and environmental performance. CO2 comprises the
majority of the CO2e emissions and is dependent on the amount of fuel combusted. A vehicle's
CH4andN2O emissions are largely dependent on the vehicle's emissions control equipment and
miles traveled.
To quantify a vehicle's CO2e emissions EPA uses emission factors that are based on vehicle
emission test results and fuel characteristics. To quantify the CO2 emissions, EPA factors in the
fuel's carbon content, heating value and fuel density. To quantify the CH4 and N2O emissions,
EPA uses emission factors found in the EPA's Inventory of U.S. Greenhouse Gas Emissions and
Sinks: 1990-20072 and Argonne National Laboratory's GREET model version 1.8b. The
emission factors used are informed by the results of the vehicle testing conducted pursuant to 40
C.F.R. Parts 86 and 600, EPA's emissions certification and fuel economy labeling programs,
respectively. Vehicle manufacturers test their vehicles using defined federal test procedures and
report the results to EPA. The drive cycles used in the test procedures are designed to simulate
real-world driving conditions. From the tests, EPA also determines the amount of fuel consumed
per mile driven. This allows EPA to calculate the CO2e emissions in grams/mile  (g/mi.) for every
vehicle manufactured for sale in the U.S.  The CO2e emission factors used are provided in Table
1 below.
Table 1 : Tailpipe CO2e Emissions Per Fuel Type

Fuel Type
Gasoline
Diesel
E85
CNG
C02
Pounds/Gallon
19.59
22.44
13.88
15.50
Grams/Gallon
8,8873
10,1805
6,2957
7,0309
CH4andN2O
Grams/Mile
1.94
0.46
4.08
6.810
Currently, a vehicle's CO2e emissions do not account for emissions of air conditioner
refrigerants, such as hydrofluorocarbons (FIFC). EPA is currently examining ways to better
account for FIFC and black carbon emissions from vehicles. EPA is in the process of developing
2 U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007, Table A-90, EPA 430-R-09-004,
April 15, 2009.
3 Value is based on indolene fuel, a specific EPA test fuel.
4 U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007, Table A-90, EPA 430-R-09-004,
April 15, 2009. Average value for Tier 2 passenger cars and light-duty trucks.
5 Value calculated based on 40 C.F.R. 600.113 carbon content.
6 U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007, Table A-90, EPA 430-R-09-004,
April 15, 2009. Average value for advanced diesel passenger cars and light-duty trucks.
7 Ethanol value is from the EPA's Final Mandatory Greenhouse Gas Reporting Rule for Petroleum Suppliers which
uses the ethanol density value from the CRC: Handbook of Chemistry and Physics, 89th Edition, 2008-2009, Editor
-in-Chief- David R. Lide; from Section 15: Density of Solvents as a function of temperature; and based the carbon
share value on a calculation of the molecular weight of carbon in ethanol (C2H5OH) using the periodic table of
elements. The table 1 value is comprised of 83% ethanol and 17% gasoline, accounts for 2% denaturant in ethanol.
8 GREET vl.Sb available in RFS2 docket #EPA-HQ-OAR-2005-0161-0956 (spreadsheet "Vehicles").
9 GREET vl.Sb available inRFS2 docket #EPA-HQ-OAR-2005-0161-0925.1 (spreadsheet "Emission Factors").
10 GREET vl.Sb available in RFS2 docket # EPA-HQ-OAR-2005-0161-0956 (spreadsheet "Vehicles").

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a proposal for GHG standards for light-duty vehicles and will evaluate the emission factors used
to calculate a vehicle's GHG emissions during the rulemaking process.
V.     What is a low GHG-emitting vehicle as it applies to EISA § 141?

For each model year since 2000, EPA lists the GHG emissions performance for each light-duty
motor vehicle model manufactured for sale in the U.S. in its Green Vehicle Guide. This can be
found at www.epa.gov/greenvehicles. The Green Vehicle Guide also provides an air pollution
score for a combination of other air pollutants such as THC, CO, PM andNOx; however, the air
pollution score is not considered under EISA § 141, which addresses only GHG emissions.

In EPA's Green Vehicle Guide, every light-duty motor vehicle model is given a GHG score from
0 to 10 based on its CC^e emissions. Table 2 lists GHG scores and corresponding CC^e
emissions for the 2010 model year.
Table 2: GHG Emissions Per GHG
score
GHG Score
10
9
8
7
6
5
4
3
2
1
0
MY 2010
CO2e emissions
(grams/mile)
<237
238 to 283
284 to 329
330 to 375
376 to 421
422 to 467
468 to 5 13
5 14 to 559
560 to 605
606 to 651
>652
                                 To define a low GHG-emitting vehicle, EPA analyzed the
                                 tailpipe CC^e emissions from all light-duty motor vehicle
                                 configurations (cars and light-duty trucks) manufactured for
                                 sale in the U.S. for the 2009 model year. Based on the
                                 distribution of vehicle CC^e emissions performance, EPA
                                 concluded that vehicles with CO2e emissions within one
                                 standard deviation of the mean emission rate of all light-
                                 duty motor vehicles manufactured in the same model year
                                 are average GHG-emitting vehicles. The mean was
                                 calculated by equally weighting all vehicle configurations.
                                 Any vehicle with CC^e emissions greater than one standard
                                 deviation above the mean is a high GHG-emitting vehicle.
                                 Any vehicle with COie emissions greater than one
                                 standard deviation below the mean is a low GHG-
                                 emitting vehicle.  The mean emission rate of the 2009
                                 model year vehicle fleet is 470 g CO2e/mi. and the standard
deviation is 98 g CC^e/mi. Therefore, one standard deviation below the mean is 372 g CC^e/mi.
As shown in Table 2, the mean minus one standard deviation falls within a GHG score of 7.

To take advantage of EPA's existing GHG scoring system and to simplify the process of
identifying vehicles that qualify under EISA § 141, any vehicle that achieves a GHG score of 7
or higher is considered to be a low GHG-emitting vehicle.

Approximately 18% of the available 2009 model year vehicle configurations achieve a GHG
score of 7 or higher, providing a reasonable number of vehicle options to federal agencies.
However, the list of vehicles that qualify as low GHG-emitting vehicles is comprised of only 6%
of the available 2009 light-duty truck configurations, only one flexible fuel passenger car and
one flexible fuel light-duty truck model. Because of the limited number of light-duty trucks and
light-duty flexible fuel vehicles (FFVs) that achieve a GHG score of 7 or higher, EPA concluded
that for the early years of this program, it is appropriate to lower the minimum GHG score for
these vehicles as follows: light-duty trucks that operate with gasoline, diesel or CNG that achieve

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a GHG score of 6 or higher qualify, flexible fuel light-duty passenger cars that achieve a GHG
score of 6 or higher when operated with alternative fuel qualify, and flexible fuel light-duty
trucks that achieve a GHG score of 5 or higher when operated with alternative fuel qualify.
These adjustments increase options for federal agencies, while still maintaining relatively low
GHG emissions performance for these vehicles. These adjustments result in approximately 13%
of the 2009 model year non-flexible fuel light-duty truck configurations, 11% of the 2009 model
year flexible fuel light-duty vehicle configurations and approximately 21% of all 2009 model
year vehicle configurations qualifying as low GHG-emitting vehicles. While the basis for the
EPA's determination is the 2009 model year fleet, this guidance applies to all vehicle
acquisitions made after this guidance document's issuance date and until the document is
superceded.

In summary, as shown in Table 3, to be considered "low GHG-emitting," passenger cars  that
operate with gasoline, diesel or CNG must achieve a GHG score of 7 or higher;  light-duty
trucks, MDPVs and FFV passenger cars when operated with alternative fuel must achieve
a GHG score of 6 or higher; and FFV light-duty trucks when operated with alternative fuel
must achieve a GHG score of 5 or higher. The GHG score for every light-duty motor vehicle
available for sale in the U.S. is published on EPA's Green Vehicle Guide at
www.epa.gov/greenvehicles.
Table 3. EPA GHG Scores Needed to Qualify as a Low GHG-Emitting Vehicle
Passenger cars
7, 8, 9, or 10
Light-Duty Trucks, MDPVs and
FFV passenger cars
6, 7, 8, 9, or 10
FFV light-duty trucks
5, 6, 7, 8, 9, or 10
As EPA develops vehicle GHG standards, we will evaluate the GHG emissions performance of
the vehicle fleet and we may adjust the definitions of low GHG-emitting vehicles accordingly.
Also, the GHG scores in Table 3 that are needed to qualify as a low GHG-emitting vehicle may
change as the overall fleets' GHG performance improves.

VI.    How do I find and identify vehicles that are low GHG-emitting vehicles?

EPA has added features to its existing Green Vehicle Guide (www.epa.gov/greenvehicles) to
allow agencies to generate an up-to-date list of all low GHG-emitting vehicles. Users can create
model year or state-specific lists of low GHG-emitting light-duty vehicles that are available for
sale in the U.S. Users can also use the Green Vehicle Guide to look up the GHG score of any
individual light-duty vehicle for sale in the U.S. To generate a list of low GHG-emitting vehicles
select the 'Federal Vehicle Acquisition' link on the left navigation bar of the Green Vehicle
Guide or go directly to www.epa.gov/greenvehicles/Federalfleet.do.

Once there, a user can select the state in which he or she plans to acquire the vehicle, the model
year of interest and the specific vehicle type (i.e., cars, trucks or FFVs). For a comprehensive list,
a user can select "All States" and "All Years" from the drop down list. From the list established,
a user can click on each vehicle and obtain a detailed description with vehicle specifications. At
the top of the vehicle specifications page, a user can select a printable Car Buyer's Check Sheet.
This will help to identify the exact vehicle intended for acquisition and can be used to customize
the vehicle intended for acquisition in the U.S. General Services Administration's (GSA)

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AutoChoice. The Car Buyer's Check Sheet can also be provided directly to a dealership or
leasing organization. Due to certain federal requirements regarding emissions certification, there
may be multiple listings for vehicles that otherwise appear to be identical. Viewing the vehicle
specifications page and the detailed description will provide information on the differences
between vehicles.

EPA updates the Green Vehicle Guide regularly to reflect new emissions data submitted
throughout the model year by vehicle manufacturers. For the most up-to-date list of available
low GHG-emitting vehicles, an agency should always reference the Federal Vehicle Acquisition
page of the Green Vehicle Guide (www.epa.gov/greenvehicles/Federalfleet.do).

If "N/A" is associated with a vehicle on the Green Vehicle Guide, this indicates that the
manufacturer is not required to report the GHG emissions and fuel economy data to EPA, which
is currently the case for MDPVs. However, beginning with model year 2011, manufacturers will
be required to submit GHG emissions and fuel economy data for these vehicles.

The GHG emissions performance of motor vehicles varies across vehicle types as well as within
a vehicle model. Therefore, it is imperative that an agency verify a vehicle's GHG score using
the Green Vehicle Guide prior to acquiring the vehicle.

Beginning in fiscal year 2010, vehicle manufacturers will provide the GHG score for a base
vehicle for each vehicle model in AutoChoice. If an agency modifies the base vehicle in
AutoChoice, the corresponding GHG score for the modified vehicle must be obtained from the
Green Vehicle Guide. Vehicle characteristics that affect a vehicle's GHG score include, but are
not limited to, engine size, drive system and transmission.

VII.   Why do some vehicles on the Green Vehicle Guide have two GHG scores?

Each fuel has a different chemical composition, carbon content and heating value, which are
factors in a vehicle's tailpipe emissions. These differences are accounted for in the CC^e
emission rates in Table 1. FFVs that operate with either gasoline or an alternative fuel (e.g., E85)
will receive two GHG scores, one that reflects the use of gasoline and another that reflects the
use of the alternative fuel. In some instances, a vehicle may qualify as a low GHG-emitting
vehicle on one fuel and not the other. When acquiring a FFV, agencies should pay particular
attention to the GHG score for the type of fuel on which the vehicle will be operated.

VIII.  What if a vehicle intended for acquisition is not listed on EPA's Green Vehicle
       Guide?

As stated in section VI above, the Green Vehicle Guide is updated throughout the year. Vehicle
manufacturers submit data to EPA to coincide with a vehicle model's planned introduction into
commerce. In some instances a vehicle may be introduced earlier than planned and the Green
Vehicle Guide may not reflect this earlier release date. These instances are not typical and an
agency should contact EPA using the contact information provided in section XX of this
guidance document when it encounters such an occurrence.

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IX.    Will a vehicle's GHG score ever change?

An agency should document a motor vehicle's GHG score at the time a vehicle is acquired. This
will avoid any question of a vehicle's GHG score for reporting purposes. When an agency
acquires a vehicle through GSA, the point of acquisition occurs when the agency orders the
vehicle from GSA.

Occasionally, a vehicle manufacturer may update or modify its vehicle certification data
submitted to EPA as described in section IV of this guidance document. If these updates or
modifications substantially change the emissions performance of a vehicle, the GHG score could
change. This should occur only rarely and, as stated above, federal agencies should use the GHG
score assigned to the vehicle at the time of acquisition.

Each year EPA will evaluate the GHG scoring system and the definitions for low GHG
emissions performance to ensure that this program is identifying the appropriate vehicles as low
GHG-emitting vehicles. Additionally, vehicle manufacturers are adding advanced technology
and other improvements to existing vehicle models that will likely improve their GHG emissions
performance. EPA expects that the GHG score for many vehicles will change from one model
year to the next. The GHG score for those vehicles in which more advanced engine technology is
added will likely increase. The GHG score for vehicles with similar GHG emissions performance
as previous model years will likely decrease.

In any  instance, federal agencies should document a vehicle's GHG score at the time a vehicle is
acquired since § 141 only applies at the point of acquisition.

X.     Are there exceptions to the requirement to acquire only low GHG-emitting vehicles?

Section 141 specifically prohibits the acquisition of light-duty motor vehicles and MDPVs that
are not low GHG-emitting vehicles as defined by this guidance document. Recognizing that
federal agencies need some flexibility to acquire vehicles for diverse applications, EISA § 141
allows for two exceptions to the prohibition.

The first exception applies in cases where no low GHG-emitting vehicle is available that meets
the functional needs of the agency. The second exception applies where an agency has taken
specific alternative measures to reduce petroleum consumption and GHG emissions. When an
agency utilizes these exceptions, EISA  § 141 requires that the head of the agency certify in
writing that either a specific functional need cannot be met by a low GHG-emitting vehicle or
that the agency has implemented cost-effective alternative measures that result in an equivalent
amount of petroleum consumption and GHG emission reductions.

Agencies are permitted to establish roles in line with their current motor vehicle management
program. For example, it would be reasonable for the head of an agency to delegate certain
responsibilities, including the certification requirement, to the individuals within the agency that
select vehicles for acquisition. However, EPA recommends that each federal agency consolidate
the responsibility for the EISA § 141 certifications in one office to maintain consistency and
facilitate program oversight and recordkeeping.

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The statute does not authorize EPA to approve use of either exception to the prohibition.
Therefore, agencies should not request approval from EPA to exercise the functional need or
alternative measure exceptions

       A.     How does the "functional needs" exception work?

       Section 141 states that the requirements to purchase low GHG-emitting vehicles "shall
       not apply.. .if the head of the agency certifies in writing, in a separate certification for
       each individual vehicle purchased,...that no low greenhouse gas emitting vehicle is
       available to meet the functional needs of the agency and details in writing the functional
       needs that could not be met with a low greenhouse gas emitting vehicle.

       The head of the federal agency, or his or her designee(s), is responsible for making such a
       determination. EPA cannot make this determination, since it is not authorized to do so.
       EPA recommends that each agency establish an agency-wide process for exercising the
       functional need exception as appropriate. The process should include identification of
       functional needs, evaluation of available low GHG-emitting vehicles  and, when
       appropriate, a determination that no low GHG-emitting vehicle is available to meet a
       functional need. An agency's determinations must be detailed in writing. Records of such
       determinations should be maintained for at least five years and/or in accordance with
       agency-specific recordkeeping requirements.

       EPA believes it is reasonable for an agency to aggregate the individual vehicles acquired
       to satisfy a specific functional need into a single list or grouping for certification by the
       head of each agency, or his or her designee(s), rather than preparing vehicle-by-vehicle
       justifications. For example, an agency can draft a cover sheet appropriately describing the
       functional need or needs that a low GHG-emitting vehicle cannot meet and attach a list of
       vehicles acquired to perform the services that satisfy the functional need or needs
       identified. The list would be updated as  vehicles are acquired.

       Each agency will define its own functional needs. However, it is reasonable that this
       exception would apply to many law enforcement motor vehicles, emergency motor
       vehicles, military tactical vehicles and vehicles used for protective services, among
       others.  EPA recognizes that certain federal law enforcement agencies require vehicles
       with specialized attributes to meet functional needs related to routine  law enforcement or
       other time critical activities, for which there may be no low GHG-emitting vehicle
       options. These activities include, but are not limited to, prisoner transport, high speed
       pursuit, border security, disaster response, immigration enforcement,  counterterrorism
       and undercover investigation. A vehicle acquired  to perform such services or any  vehicle
       acquired that could reasonably be expected to perform such services,  appears to merit an
       exception based upon the functional need for expanded interior volume, larger engine
       size, camouflage, specialized on-board equipment or other specialized vehicle attributes.
       In accordance with the statute, an agency or group within a law enforcement agency must
       identify the routine law enforcement and/or time critical activities, the basis for the
       functional need exception and maintain  a list of vehicles acquired to perform the

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activities identified. Advance recognition of these functional needs and grouping vehicles
under a single certification will expedite a law enforcement agency's vehicle acquisition
process.

Section 141 applies to all individual light-duty vehicles and MDPVs; therefore, the
guidance regarding vehicles acquired for law enforcement and/or other time critical
activities in this section should not be considered an exclusion from EISA § 141. If a low
GHG-emitting vehicle is available that meets any of the needs of a law enforcement
agency, EPA would expect an agency to acquire the low GHG-emitting vehicle.

B.     How does the "alternative measures" exception work?

Section 141 states that the requirement to purchase low GHG-emitting vehicles "shall not
apply.. .if the head of the agency certifies in writing, in a separate certification for each
individual vehicle purchased.. .that the agency has taken specific more cost-effective
measures to reduce petroleum consumption that (I) have reduced a measured and verified
quantity of greenhouse gas emissions equal to or greater than the quantity of greenhouse
gas reductions that would have been achieved through acquisition of a low greenhouse
gas emitting vehicle over the lifetime of the vehicle; or (II) will reduce each year a
measured and verifiable quantity of greenhouse gas emissions equal  to or greater than the
quantity of greenhouse gas reductions that would have been achieved each year through
the acquisition of a low greenhouse gas emitting vehicle."

This exception allows an agency to acquire a vehicle that is not a low GHG-emitting
vehicle if it offsets the incremental increase of petroleum consumption and GHG
emissions compared to a low GHG-emitting vehicle. A range of offsetting reduction
strategies can be contemplated, such as reducing vehicle miles traveled (VMT), reducing
the number of vehicles owned and operated, acquiring neighborhood electric vehicles
(NEVs) to replace conventional  vehicles not being used on public roads or highways, or
reducing winter temperatures in buildings heated by oil. More information and resources
on alternative measures are provided on the Federal Vehicle Acquisition page of the
Green Vehicle Guide at www.epa.gov/greenvehicles/Federalfleet.do.

The head of the federal agency,  or his or her designee(s), is responsible for determining
the appropriate cost-effective alternative measure(s) and for quantifying the GHG
emission reductions associated with the measure. Federal agencies are not required to
consult with or receive approval from EPA. EPA recommends that each agency establish
an agency-wide method for documenting the basis for its determination and maintain
records of such determinations for at least five years and/or in accordance with agency-
specific recordkeeping requirements.

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i.      Under the alternative measures exception, can a federal agency assess
       the aggregate GHG emissions from all of its acquired vehicles to
       determine the quantity of emissions that must be reduced?

The alternative measures exception requires that agencies quantify the total
GHG emissions that will result from acquiring vehicles that do not meet EPA's
definition of a low GHG-emitting vehicle.  The alternative measures exception
further requires that agencies compare the  GHG emissions performance of a
vehicle that does NOT meet EPA's definition of a low GHG-emitting vehicle to
the GHG emissions performance of a low GHG-emitting vehicle and offset the
difference. To most effectively use the alternative measures exception and
determine the necessary offsets, EPA believes that agencies should assess the
aggregate GHG emissions from their light-duty motor vehicle and MDPV
acquisitions annually.

Allowing federal agencies to assess the aggregate GHG emissions from the
vehicles they acquire will enable them to obtain the mix of vehicles they need
while creating an incentive to acquire vehicles with the highest GHG scores.

To help federal agencies quantify and verify the aggregate GHG emissions as
required by the alternative measures exception, EPA developed the Federal
Vehicle GHG Emission Assessment Tool.  The Assessment Tool can be
downloaded from the Green Vehicle Guide's Federal Vehicle Acquisition Web
site at www.epa.gov/greenvehicles/Federalfleet.do. The Assessment Tool is a
spreadsheet-based calculator that assists federal  agencies with tracking, verifying
and quantifying the GHG emissions associated with the vehicles they acquire or
plan to acquire. To satisfy the § 141 certification requirement, the head of an
agency, or his or her designee(s), should certify that the Assessment Tool properly
and accurately accounts for all applicable motor vehicle acquisitions completed in
a fiscal year or other acquisition cycle specified  by the agency.

To calculate the aggregate GHG emissions from an agency's motor vehicles, a
user simply inputs into the Federal Vehicle GHG Emissions Calculator, which is
found in the Assessment Tool, the number of passenger cars, FFV passenger cars,
light-duty trucks and FFV light-duty trucks they intend to acquire within each
GHG score during the period specified by the agency. An agency should only
enter FFVs in the FFV columns if the FFV will be operated with the alternative
fuel. The Federal Vehicle GHG Emissions Calculator performs three main
functions based on the number  of vehicles  entered in the calculator:

    1.  It quantifies the agency' s aggregate GHG emissions.
   2.  It calculates the agency's EISA GHG emissions limit.
   3.  It compares the agency's aggregate GHG emissions to its EISA GHG
       emissions limit.
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       If an agency's aggregate GHG emissions are less than its EISA GHG emissions
       limit, the agency complies with § 141. If an agency's aggregate GHG emissions
       exceed its EISA GHG emissions limit, the agency must implement further GHG
       emission reduction measures to offset the excess GHG emissions consistent with
       the alternative measures exception or re-evaluate its vehicle acquisition mix.

       An agency can also use the Assessment Tool to quantify its GHG emissions if it
       chooses  to implement other mobile source-related GHG emission reduction
       measures, such as reducing VMT or replacing conventionally fueled vehicles with
       NEVs. To quantify emission reductions associated with reducing VMT, the user
       would modify the average annual mileage value used to  calculate the agency's
       aggregate GHG emissions.

       Figure 1 shows a screen capture of the Federal Vehicle GHG Emissions
       Calculator displaying a hypothetical mix of 58 passenger cars that will  be
       operated with either gasoline, diesel fuel or CNG; 30 FFV passenger cars that will
       be operated with E85; 53 light-duty trucks that will be operated with either
       gasoline, diesel fuel or CNG; and 37 FFV light-duty trucks that will be operated
       with E85 with varying GHG scores. In this example, the hypothetical agency's
       aggregate GHG emissions from its motor vehicles are 599.8 metric tons
       CO2e/year. The agency's EISA GHG emissions limit is 550.1 metric tons
       CO2e/year. This agency's aggregate GHG emissions exceed its EISA limit;
       therefore, consistent with the alternative measures exception, the agency must
       reduce its CO2e emissions an additional 49.7 metric tons.

Figure 1. Federal Vehicle GHG Emissions Calculator Interface

Greenhouse Gas Score
Criteria
GHG
Score
10
9
a
7
6
5
4
3
2
1
0
Avg. CO2e
emissions
(grams/mile)
215
261
307
353
399
445
491
537
583
629
675













Totals:
Average Annual Mileage:
Cars
10,000
Trucks
6,000
Enter the number of cars/trucks acquired by your agency:
# of Cars
Gas/Diesel/

10
15
10
8


15



58
Alternative




20
10





30
# of Trucks
Gas/Diesel/



3
15

15
20



53
Alternative




15
10


12


37















EISA Limit:
Difference:
CO2 Equivalent Perfomiance
Cars (Metric Tons)
Gas/Diesel/
CNG

26.1
46.1
35.3
31.9


80.6



220.0

204.7

-15.3
Alternative
Fuel




79.8
44.5





124.3

119.7

•£6
Trucks (Metric Tons)
Gas/Diesel/
CNG



6.4
35.9

44.2
64.4



150.9

126.9

-24.0
Alternative
Fuel




35.9
26.7


42.0


104.6

98.8

-5.8

Annual GHG Emissions Summary
Aggregate: 599.8 Metric tons CO2e
EISA Limit: 550.1 Metric tons CO2e
-49.7 Metric tons CO2e
Results: You Owe The Above Quantity
       Section 141 applies when a vehicle is acquired; therefore, EPA recommends that
       an agency calculate its EISA GHG emissions limit and aggregate GHG emissions
       when developing its annual acquisition plan. The Assessment Tool can be
       downloaded, maintained and updated as vehicle acquisitions are made throughout
       the year to ensure an agency does not exceed its EISA GHG emissions limit. An
       agency's EISA GHG emissions limit and aggregate GHG emissions will update
                                    11

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             as vehicles are added to the tool. EPA also recommends that an agency calculate
             its final EISA GHG emissions limit and aggregate GHG emissions for a fiscal
             year or acquisition cycle after all vehicle acquisition activity is completed. The
             period covered and timing will depend on each agency's purchasing practices and
             can be done in coordination with Federal Management Regulation requirements
             (41 C.F.R. § 102). The period covered should be discreet (i.e., a fiscal year or
             calendar year).

             The GHG emissions from vehicles acquired under the "functional needs"
             exception described above in this section should not be included in an agency's
             aggregate GHG emissions. To avoid overuse of the functional need exception,
             agencies may consider including all of their vehicles in the Assessment Tool and
             exercising the alternative measure exception.

             EPA will evaluate the impact of aggregating motor vehicle GHG emissions
             during the first year of implementation of this guidance document and may make
             adjustments or refinements in a future guidance document. EPA plans to address
             additional GHG emissions accounting opportunities in the future.

       C.    Are the aggregate GHG emissions for an agency's fleet nationwide or is
             it quantified based on a metropolitan statistical area (MSA) or consolidated
             metropolitan statistical area (CMSA)?

       All light-duty motor vehicles and MDPVs acquired by a federal agency are covered by
       EISA § 141; therefore, an agency should consider all  of its light-duty motor vehicles and
       MDPVs and not just those located in a MSA or CMSA. However, since the head  of each
       agency is permitted to designate a person or person(s) to be responsible for implementing
       EISA § 141, as stated in this section above, geographic clusters of vehicles can result. In
       these instances an agency head, or his or her designee(s), can decide that the GHG
       emissions for each geographic cluster of vehicles can be aggregated independently if the
       agency elects to utilize the alternative measures exception.

XI.    What are Electric Vehicles (EVs) and how are they included in this guidance
       document?

An electric vehicle, as defined by 10 C.F.R. §  474.2, is a vehicle that is powered by an electric
motor drawing current from rechargeable storage batteries or other portable electrical energy
storage devices. Recharge energy is drawn from a source off the vehicle - they are plugged into
an external electrical source to charge their batteries. Hybrid electric vehicles (HEVs) combine
the internal combustion engine of a conventional vehicle with the battery and electric motor of
an EV. Plug-in hybrid electric vehicles (PHEVs) can be charged by a  source off the vehicle like
an EV  and run on engine power like a HEV. EVs are considered zero-emissions vehicles because
they do not produce tailpipe CC>2 emissions. HEVs and PHEVs produce tailpipe emissions and,
therefore, are not considered EVs for purposes of this guidance document. HEVs and PHEVs are
treated like conventional vehicles. Similar to conventionally fueled vehicles, as described in
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section IV of this guidance document, manufacturers must properly certify EVs with EPA before
introducing these vehicles into commerce.

Currently, a vehicle's GHG emissions performance is based only on its tailpipe emissions.
Because they have no tailpipe emissions, all EVs achieve a GHG score of 10. At the time of this
writing, there are no EVs listed in the Green Vehicle Guide. As manufacturers certify EV
configurations, EPA will add these vehicles. If the Green Vehicle Guide scoring framework
expands to include emissions from charging an EVs battery using an off-board source (e.g.,
charging the batteries from the electricity grid), EPA will develop a methodology to account for
these emissions. When an agency is acquiring EVs, it should consider two key factors that
influence the off-board GHG-emissions, the EVs rate of energy consumption and the emissions
from the generation of electricity that is used to charge the EVs batteries.

       A.    Are Neighborhood Electric Vehicles (NEVs) included as EVs?

       Electric Vehicles that are not manufactured primarily for use on public streets, roads and
       highways (e.g., EVs that cannot exceed a maximum speed of 25 mph) are excluded from
       the definition of a motor vehicle (40 C.F.R. § 85.1703) and, therefore, are beyond the
       scope of EISA § 141. Typically referred to as NEVs, manufacturers of these vehicles are
       not required to meet vehicle emission certification or fuel economy labeling
       requirements. Examples of NEVs include certain vehicles used to transport people and
       cargo on a campus or military base. NEVs typically achieve energy consumption values
       of approximately 0.23 kWh/mi. or lower.

       Currently, NEVs are not included on EPA's Green Vehicle Guide. EPA recognizes that
       NEVs are being acquired by federal agencies to replace conventionally fueled motor
       vehicles to reduce GHG emissions and fuel consumption. Therefore, EPA believes it is
       appropriate to include them in this guidance document. When  replacing a conventionally
       fueled motor vehicle, EPA believes that acquiring a NEV is a reliable alternative measure
       as described in section X(B) of this guidance  document. An agency should include NEVs
       (with a GHG score of 10) in its mix of vehicles when using the Federal Vehicle GHG
       Emissions Calculator as described in section X(B)(i).

       Use of NEVs instead of conventionally fueled vehicles would  only be appropriate where
       the federal agency has determined that the replacement NEV can be operated in
       accordance with all applicable federal, state and local restrictions.

XII.   What if the vehicle that I am interested in purchasing only qualifies as a low GHG-
       emitting vehicle using an alternative fuel?

As stated in section V, the minimum GHG score requirements for light-duty FFVs to be
considered low GHG-emitting vehicles when  operated with the alternative fuel are lower than for
dedicated gasoline-fueled vehicles. A FFV passenger car when operated with alternative fuel
must achieve a GHG score of 6 or higher. A FFV light-duty truck when operated with alternative
fuel must achieve a GHG score of 5 or higher. If a vehicle only qualifies as a low GHG-emitting
vehicle when operated with an alternative fuel (e.g., E85), the vehicle must be operated with the
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alternative fuel in order to be considered a low GHG-emitting vehicle. The fuel type used to
determine the GHG score is clearly identified when using EPA's Green Vehicle Guide.

To use the GHG score based on an alternative fuel, agencies must demonstrate that the
alternative fuel is available within a 5 mile radius or 15 minutes of the vehicle's garaged location
and demonstrate that the vehicle will be operated with the alternative fuel. These are similar
criteria that agencies use to determine whether a fuel waiver is appropriate under section 701 of
the Energy Policy Act of 2005 (EPAct2005). Therefore, if an agency intends to request a fuel
waiver for a FFV, the agency should use the GHG score associated with operating the vehicle
with gasoline. Furthermore, as required by EPAct2005 § 701, an agency can only operate this
FFV with gasoline under a fuel waiver issued by DOE. If an agency decides to utilize the
aggregate GHG emissions assessment tool described in section X(B)(i) above, the appropriate
GHG score for each vehicle is the GHG score that corresponds to the fuel on which the vehicle
will be operated. If an agency intends to request a fuel waiver for a FFV and operate the vehicle
with gasoline, then the agency would include it in the Federal Vehicle  GHG Emissions
Calculator within the  GHG score that corresponds to operating the vehicle with gasoline.

This guidance does not address instances of an agency relocating an alternative fuel vehicle
(AFV) to an area where the alternative fuel is not readily available. This circumstance is beyond
the scope of EISA § 141, which applies at the time of vehicle acquisition. However, agencies
should consider EISA § 142 and Executive Order (E.O.) 13423 fuel use requirements when
deciding to relocate an AFV to an area where the alternative fuel is not available.

To find the locations of fueling stations dispensing alternative fuels, please visit
www.eere.energy.gov/afdc/stations/fmd_station.php.

XIII.  How do the requirements of EISA § 141  interact with the requirements of EPAct92
       § 303(b)  (42 U.S.C. § 13212(b))?

As explained above, EISA § 141 requires that federal agencies acquire low GHG-emitting light-
duty motor vehicles and MDPVs. Federal agencies are also required to comply with the EPAct92
§ 303(b) AFV acquisition requirement, which requires that 75% of the total number of vehicles
acquired by a federal  agency for its fleet(s) be AFVs. Federal agencies are required to comply
with both statutes.

Many AFVs — particularly FFVs that are capable of operating  on both gasoline and E85 - do not
qualify as low GHG-emitting vehicles, especially if the agency operates or intends to operate the
vehicle with gasoline.  At the time of this writing, approximately  11% of all 2009 model year
FFV configurations qualify as low GHG-emitting vehicles when operated with E85. When
operated with gasoline, only one 2009 model year FFV qualifies  as a low GHG-emitting vehicle.
Even with the lower minimum GHG score requirement for light-duty FFVs, the availability of
vehicle configurations that qualify  under both EISA § 141 and EPAct92 § 303(b) may lead to
concerns that federal agencies will be unable to comply with both statutes. However, section
2862 of the National Defense Authorization Act of 2008 (NDAA 2008) (Pub. L. 110-181, Jan.
28, 2008) contains a provision which integrates EISA §  141 and EPAct92 § 303(b) in a manner
that enables agencies  to more easily comply with both statutory requirements. Section 2862 of
                                           14

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NDAA 2008 amends EPAct92 § 301(3) (42 U.S.C. § 13211(3)) by expanding the definition of
an AFV to include the following vehicles:

    1.  A new qualified fuel cell motor vehicle (as defined by 26 U.S.C. 30B(b)(3));
    2.  A new advanced lean burn technology motor vehicle (as defined by 26 U.S.C.
       30B(c)(3));
    3.  A new qualified hybrid motor vehicle (as defined by 26 U.S.C. 30B(d)(3)); and
    4.  Any other type of vehicle that the Administrator of the Environmental Protection Agency
       demonstrates to the Secretary of Energy would achieve a significant reduction in
       petroleum consumption.

In accordance with NDAA 2008 § 2862, in a December 12, 2008 letter to DOE (Appendix B),
EPA demonstrated that operating a low GHG-emitting vehicle, as defined in this guidance
document, would achieve a significant reduction in petroleum consumption consistent with item
four above. EPA's demonstration showed that low GHG-emitting vehicles  achieve a significant
reduction in petroleum consumption similar to or greater than the other newly defined AFVs that
are commercially available (i.e., advanced lean burn and hybrid vehicles), and a significant
reduction in petroleum consumption compared to existing FFVs operating on gasoline.

Based on the demonstration EPA made to DOE and the objectives of the EPAct92 AFV
program, any low GHG-emitting vehicle acquired in lieu of a FFV that an agency reasonably
determines qualifies for a fuel waiver under EPAct2005 § 701 is now included in the expanded
definition of an AFV. Each agency head, or his or her designee(s), determines if its FFVs would
qualify for a fuel waiver based on the criteria established by DOE. Unless an exception is
utilized as described in  section X of this guidance document, any light-duty vehicle or MDPV
acquired is required to be a low GHG-emitting vehicle.

The expanded AFV definition described above provides federal agencies flexibility to achieve
the greatest reductions of petroleum consumption and GHG emissions. An  agency can acquire
any vehicle included in the expanded AFV definition that is a low GHG-emitting vehicle. Where
alternative fuel is available or will become available, an agency can acquire any FFV or AFV
that is a low GHG-emitting vehicle. Where alternative fuel is not available, an agency can
acquire any low GHG-emitting vehicle.

Including low GHG-emitting vehicles in the expanded AFV definition does not preclude an
agency from acquiring AFVs in areas where the alternative fuel is not available. To drive the
demand for alternative fuel, an agency should consider acquiring  FFVs that qualify as low GHG-
emitting when operated with either conventional fuel or alternative fuel. If an agency is confident
that alternative fuel will be available within a reasonable amount  of time, an agency should
consider exercising the  alternative measure exception described in section X(B) to acquire
vehicles that only qualify when operated with alternative fuel.

For example, the model year 2009 Chevrolet Impala only qualifies as a low GHG-emitting
vehicle when operated with E85. If an agency acquired 100 of these vehicles under the
alternative measure exception, received fuel waivers from DOE and operated these vehicles with
gasoline, the agency would be required to offset 46 metric tons of CO26 emissions based on
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10,000 vehicle miles traveled annually. The offsets could be achieved through any cost-effective
petroleum reduction alternative measure, including acquiring an equal number of vehicles that
achieve a GHG score of 8.

Including low GHG-emitting vehicles in the expanded definition of an AF V does not alter the
definition of an alternative fuel as defined by EPAct92 § 301(2) (42 U.S.C.  § 13211(2)) and
federal agencies must continue to increase their overall use of alternative fuels as required by
EISA§ 142 and E.G.  13423.

XIV.  How are MDPVs addressed?

As defined by 40 C.F.R. § 86.1803-01, a MDPV has a GVWR of greater than 8,500 Ibs. (or a
curb weight greater than 6,000 Ibs.) but less than 10,000 Ibs. and is designed primarily to
transport less than 12 passengers or less than 9 passengers rearward of the driver's seat. In
addition, it is not equipped with an open cargo area of 72 inches in interior length or more.
MDPVs are covered vehicles under EISA § 141. However, corporate average fuel  economy
standards do not apply to MDPVs until model year 2011; therefore, EPA has only  limited data
on their GHG emissions. Beginning with model year 2011, manufacturers are required  to provide
this data to EPA.

EPA anticipates that the GHG emissions performance of MDPVs will be similar to light-duty
trucks. Based on the data EPA does have,  EPA does not believe there are any MDPVs that are
low GHG-emitting vehicles using the light-duty truck definition (i.e., a MDPV that achieves a
GHG score of 6 or higher). For the 2009 and 2010 model years, federal agencies requiring
MDPVs should request the combined fuel economy value from the manufacturer. To compare to
other vehicles listed in the Green Vehicle  Guide, the fuel economy should be evaluated over the
same driving cycles referenced in section IV of this guidance document. Once the  combined fuel
economy value is obtained, an agency can go to the About the Ratings Web page of the Green
Vehicle Guide Web site at www.epa.gov/greenvehicles/Aboutratings.do to determine the
MDPVs GHG score. Once an agency is on the About the Ratings Web page, scroll to the
section labeled Greenhouse Gas Score where a table of minimum miles per gallon (mpg) values
and the corresponding GHG scores is provided. An agency should also consider whether the
"functional needs" exception described under section X(A) of this guidance document is
appropriate or if an alternative measure as described in section X(B) can be implemented to
achieve necessary GHG emissions reductions. Except when using the "functional need"
exception, an agency should include these vehicles in the Federal Vehicle GHG Emissions
Calculator if it elects to aggregate its GHG emissions.

XV.   Are government-owned contractor-operated vehicles included?

Yes, government-owned contractor-operated vehicles are subject to the provisions of EISA
§ 141. Executive Order 13149, Sec. 505 (42 U.S.C. § 13212) states that "Agencies must ensure
that all Government-owned contractor-operated vehicles comply with all applicable goals and
other requirements of [the E.O.] and that these goals and requirements are incorporated into each
contractor's management contract." Executive Order 13423 (72 FR 17, January 26, 2007)
requires that agencies "ensure that contracts entered into.. .for contractor operation of
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government-owned.. .vehicles require the contractor to comply with the provisions of [the E.O.]
with respect to.. .vehicles to the same extent as the agency would be required to comply if the
agency operated the.. .vehicles." Both Executive Orders include government-owned contractor-
operated vehicles in order to improve the environmental performance of vehicles owned by the
federal government. Therefore, EPA believes the requirement to purchase low GHG-emitting
vehicles, as defined by this guidance document, should be included in each contractor's
management contract, as appropriate. An agency is permitted to utilize the exceptions in sections
X(A) and (B), as appropriate. An agency should include these vehicles in the Federal Vehicle
GHG Emissions Calculator if it elects to aggregate its GHG emissions as described in section
X(B)(i). This requirement does not apply to contracts entered into by the U.S. House of
Representatives or its Office of the Chief Administrative Officer.

XVI.  What about vehicles purchased in the United States and operated outside of the
       United States?

EISA § 141 requires that in determining which vehicles are low GHG-emitting, EPA consider
standards "applicable to and enforceable against motor vehicle manufacturers for vehicles sold
anywhere in the United States." This means that EISA § 141 applies to the acquisition of
vehicles manufactured for sale in the U.S., including territories and possessions of the U.S., but
shipped overseas for operation. An agency should include these vehicles in the Federal Vehicle
GHG Emissions Calculator if it elects to aggregate its GHG emissions. Vehicles manufactured
for sale outside the U.S. are beyond the scope of EISA § 141. As a general note, federal agencies
should verify that other countries in which vehicles manufactured for the U.S. market will
operate have a supply of the fuels needed to ensure proper performance of the vehicle's
advanced emission control equipment. Some fuels available in certain other countries will
compromise the emission control equipment of vehicles manufactured for operation in the U.S.

XVII.  What if my agency wants to acquire vehicles that are from a model year prior to
       model year 2010?

The Green Vehicle Guide begins with model year 2000. Therefore, agencies should use the GHG
score provided in the Green Vehicle Guide for model years 2000 through the current model year.
The minimum GHG scores that qualify vehicles as low GHG-emitting vehicles  apply to all
model years.

XVIII. What are the recordkeeping requirements?

Section 141 requires that agency heads, or his or her designee(s), "certify in writing, for each
individual vehicle purchased" when a non-low GHG-emitting vehicle is acquired under the
"functional needs" or "alternative measures" exceptions described in section X of this
guidance document. Agencies should also maintain records documenting the use of the
Assessment Tool as described in section X(B). EPA recommends federal agencies develop
agency-specific methods for maintaining the data or information demonstrating compliance with
EISA § 141, including which vehicles were acquired under each exception. The method could
utilize a spreadsheet or other format and should include, but not be limited to, the make and
model of each individual vehicle, model year, fuel on which the vehicle is operated and GHG
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score. In consultation with GSA, EPA has recommended including information regarding the
acquisition of low GHG-emitting vehicles by federal agencies in GSA's Federal Fleet Report.

XIX.  What are the reporting requirements?

Section 141 imposes no specific reporting requirements on federal agencies. However, there are
existing requirements that agencies report vehicle acquisition data. For example, 41 C.F.R.  §
102-34.75, Motor Vehicle Management, requires that agencies provide GSA, on an annual basis,
a synopses of their motor vehicle leases and purchases. This is currently accomplished through
use of the Federal Automotive Statistical Tool (FAST). In addition, each year agencies submit
annual reports to Congress that indicate compliance with vehicle acquisition, petroleum
consumption and alternative fuel consumption requirements. EPA has had discussions with GSA
and DOE to incorporate agency implementation of EISA § 141 into existing reporting
mechanisms.

If it is determined that FAST is the appropriate mechanism, upon completion of the necessary
updates, federal agencies will be able to enter the relevant low GHG-emitting vehicle
information on an annual basis. If it is another mechanism, agencies will be informed through the
applicable reporting protocol.

Regardless of the mechanism chosen, EPA anticipates reviewing the information annually to
evaluate implementation of EISA § 141. In particular, EPA will assess the use of the exceptions
described in sections X(A) and (B) of this guidance document.

Prior to inclusion of the necessary information in existing reporting requirements, EPA requests
that agencies submit electronic copies of records and other supporting documentation including,
but not limited to: their Assessment Tool, records indicating vehicles acquired under each
exception described in sections X(A) and (B), and records indicating vehicles' GHG scores. All
records should be submitted to EPA at the e-mail address provided below in section XX.

XX.   Contact Information

Jason Swift, Office of Transportation and Air Quality, (202) 343 - 9073, swift.jason@epa.gov or
Kristin Kenausis, Office of Transportation and Air Quality, (202) 343 - 9225,
kenausis.kristin@epa.gov
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                                             Appendix A

                      PUBLIC LAW 110-140—DEC. 19, 2007 121 STAT. 1517


                             Subtitle C—Federal Vehicle Fleets

SEC. 141. FEDERAL VEHICLE FLEETS.
        Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 13212) is amended—
                (1) by redesignating subsection (f) as subsection (g); and
                (2) by inserting after subsection (e) the following new subsection:
        "(f) VEHICLE EMISSION REQUIREMENTS.—
                "(1) DEFINITIONS.— In this subsection:
                        "(A) FEDERAL AGENCY.—The term 'Federal agency' does not include any office of the
                        legislative branch, except that it does include the House of Representatives with respect
                        to an acquisition described in paragraph (2)(C).
                        "(B) MEDIUM DUTY PASSENGER VEHICLE.—The term 'medium duty passenger vehicle' has
                        the meaning given that term section 523.2 of title 49 of the Code of Federal Regulations,
                        as in effect on the date of enactment of this paragraph.
                        "(C) MEMBER'S REPRESENTATIONAL ALLOWANCE.—The term 'Member's Representational
                        Allowance' means the allowance described in section 101(a) of the House of
                        Representatives Administrative Reform Technical Corrections Act (2 U.S.C. 57b(a)).
                "(2) PROHIBITION.—
                        "(A) IN GENERAL.— Except as provided in subparagraph (B), no Federal agency shall
                        acquire a light duty motor vehicle or medium duty passenger vehicle that is not a low
                        greenhouse gas emitting vehicle.
                        "(B) EXCEPTION.— The prohibition in subparagraph (A) shall not apply to acquisition of
                        a vehicle if the head of the agency certifies in writing, in a separate certification for each
                        individual vehicle purchased, either—
                                "(i) that no low greenhouse gas emitting vehicle is available to meet the
                               functional needs of the agency and details in writing the functional  needs that
                               could not be met with a low greenhouse gas emitting vehicle; or
                                "(ii) that the agency has taken specific alternative more cost-effective measures
                               to reduce petroleum consumption that—
                                        "(I) have reduced a measured and verified quantity of greenhouse gas
                                        emissions equal to or greater than the quantity of greenhouse gas
                                        reductions that would have been achieved through acquisition of a low
                                        greenhouse gas emitting vehicle over the lifetime of the vehicle; or
                                        "(II) will reduce each year a measured and verified quantity of
                                        greenhouse gas emissions equal to or greater than the quantity of
                                        greenhouse gas reductions that would have been achieved  each year
                                        through acquisition of a low greenhouse gas emitting vehicle.
                        '' (C) SPECIAL RULE FOR VEHICLES PROVIDED BY FUNDS CONTAINED IN MEMBERS '
                        REPRESENTATIONAL ALLOWANCE.— This paragraph shall apply to the acquisition of a light
                        duty motor vehicle or medium duty passenger vehicle using any portion of a Member's
                        Representational Allowance, including an acquisition under a long-term lease.
                "(3) GUIDANCE.—
                        "(A) IN GENERAL.— Each year, the Administrator of the Environmental Protection
                        Agency shall issue guidance identifying the makes  and model numbers of vehicles that
                        are low greenhouse gas emitting vehicles.
                        "(B) CONSIDERATION.— In identifying vehicles under subparagraph (A), the
                        Administrator shall take into account the most stringent standards for vehicle greenhouse
                        gas emissions applicable to and enforceable against motor vehicle manufacturers for
                        vehicles sold anywhere in the United States.
                        "(C) REQUIREMENT.—The Administrator shall not identify any vehicle as a low
                        greenhouse gas emitting vehicle if the vehicle emits greenhouse gases at a higher rate

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than such standards allow for the manufacturer's fleet average grams per mile of carbon
dioxide-equivalent emissions for that class of vehicle, taking into account any emissions
allowances and adjustment factors such standards provide.".
                            II

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                                  Appendix B
                                            D.C.
                                   DEC 1:


Mr. John IVlizroch
Acting Assistant Secretary
Office of Energy Efficiency and Renewable Energy
U.S. Department of Energy
Room 6a-013/Forrestal Building
1000 Independence Avenue. S.W.
Washington, D.C. 20585

Dear Mr. Mizroch:

       On December 19.2007. the President signed the Energy Independence and Security Act
of 2007 (EISA). Section 14] of EISA amends section 303 of the Energy Policy Act of 1992
(EPAct92) (42 U.S.C. § 13212) and requires the Environmental Protection Agency (EPA) to
define low greenhouse gas (GHG) emitting vehicles and lo annually provide federal agencies a
list of low GHG-emitting vehicles, which the federal agencies must then acquire. As you know.
EPAct92 § 303(b) already requires federal agencies to purchase alternative fueled vehicles
(AFVs) for 75% of their federal fleet (42 U.S.C. § 13212(b)). The coexistence of these two
requirements may cause some uncertainty as to which vehicles agencies should acquire.

       However, staff in EPA's Office of Transportation and Air Quality and in the Department
of Energy's (DO£fs) Federal Energy Management Program have worked together to develop a
solution that integrates and reconciles the two requirements and creates a more flexible, cohesive
EPAct92 program that allows agencies to acquire the most appropriate vehicles for very diverse
applications and geographic areas, while at the same time reducing petroleum consumption.
This solution utilizes a provision of the National Defense Authorization Act for Fiscal Year 2008
(NDAA 2008) that amends EPAct92.  Section 2862 of NDAA 2008 (42 U.S.C. § 13211(3))
expands the definition of AFVs and provides DOE the flexibility to include low GHG-emitting
vehicles in the expanded definition. To take advantage of this flexibility. EPA must demonstrate
to DOE that low GHG-emitting vehicles would achieve a significant reduction in petroleum
consumption.

       This letter serves as EPA's demonstration to DOE that low GHG-emitting vehicles, as
defined in EPA's enclosed draft guidance, achieve a significant reduction in petroleum
consumption.
                                        Ill

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BACKGROUND:

       In 2006. EPA developed a GHG scoring system that assigns every car and light truck a
GHG score from 0 to 10 {where 10 indicates the best GHG performance). EPA will use this
existing scoring system to implement section 141 of EISA. We intend to define low GHG-
emitting vehicles to be any passenger car that achieves a GHG score of 7 or higher and any light
duty Truck or medium duty passenger vehicle that achieves a GHG score of 6 or higher. A more
detailed description of EPA's GHG scoring system is included in the enclosed draft guidance
document titled "Guidance for Federal Agencies: Federal Vehicle Fleets. Energy Independence
and Security Act of 2007."

       During the course of developing this EISA guidance, we have talked to numerous federal
agencies about how the new EISA § 141 requirements will be integrated into their existing
EPAct92 program that requires the acquisition of AFVs. Many AFVs - particularly flexible fuel
vehicles (FFVs) that are capable of operating with both gasoline and E85 - will not qualify as
low GHG-emitling vehicles, especially if the agency intends to operate the vehicle with
gasoline1.

       As stated earlier, the best opportunity for integrating the two requirements relies on
section 2862 of NDAA 2008 which adds several new types of vehicles to the definition of an
AFV. Newly defined AFVs include the following:

       1)  a new qualified fuel cell motor vehicle (as defined by 26 U.S.C. 30B(b)(3))
       2)  a new advanced lean burn technology motor vehicle
          (as defined by 26 U.S.C. 30B(c)(3)):*
       3)  a new qualified hybrid motor vehicle (as defined by 26 U.S.C. 30B(d)(3)): and
       4)  any other type of vehicle that the Administrator [of EPA] demonstrates to the
          Secretary [of Energy] would achieve a significant reduction in petroleum
          consumption.

       The fourth type of vehicle described above provides DOE the flexibility to include low
GHG-emitting vehicles in the definition of an AFV. If low GHG-emitling vehicles reduce
petroleum consumption as much  as those vehicles defined by any of the first three examples then
it is reasonable to conclude that low GHG-emitting vehicles would also achieve a "'significant
reduction in petroleum consumption" for purposes of section 2862 of NDAA 2008.  EPA
demonstrates below that low GHG-emitting vehicles, as defined in EPA's draft guidance, satisfy
this measure.

EPA's DEMONSTRATION:

       For DOE to include low GHG-emitting vehicles as AFVs. NDAA 2008 specifically
requires that EPA demonstrate to DOE that these vehicles achieve a significant reduction in
petroleum consumption. Below we compare the petroleum consumption of low GHG-emitting
1 Only one 2009 model year FFV qualifies as a low GHG-emitling vehicle when operated with gasoline - the
Chevrolet HHR. which is a light dutv truck
                                       IV

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vehicles to the first three types of vehicles now considered AFVs as a result of NDAA 2008 and
to traditional AFVs currently acquired by many federal agencies, specifically FFVs.

1. Comparison of low GBG-emitting vehicles to the first three types of vehicles now
considered AFVs as a result of NDAA

       The first three vehicle types are defined by the Internal Revenue Service (IRS) for
purposes of the Alternative Motor Vehicle Credit (26 U.S.C. § 30B),  Both advanced lean bum
technology and hybrid vehicles are commercially available to the general consumer and to
federal agencies. At this time, no fuel cell vehicles are commercially available. Annually, the
IRS provides a list of eligible vehicles2, which are provided in Table 1 along with their
associated fuel consumption and GHG  performance.

       EPA's definition of a low GHG-emitting light-duty truck requires a minimum combined
gasoline fuel economy of 22 MPG (25  MPG for diesel powered trucks). EPA's definition of a
low GHG-emitting passenger car requires a minimum combined gasoline fuel economy of 24
MPG (28 MPG for diesel powered cars).  Of the 25 hybrid and advanced lean burn technology-
truck and passenger car models that qualify as AFVs under NDAA 2008. 8 models (32%) have
combined fuel economy values less than the minimum needed to qualify as low GHG-emitting
vehicles. Therefore, all low GHG-emitting vehicles provide better fuel consumption
performance than 32% of the qualifying hybrid and advanced lean burn technology AFVs. In
addition, there are at least  13 traditional gasoline powered low GHG-emitting vehicles with a
combined fuel economy of at least 30 MPG, including the Chevrolet Aveo and Cobalt. Pontiac
G3 and G5. Toyota Corolla and Yaris,  and the Honda Fit. Each of these 13 models has better
fuel economy than 16 of the 25 (64%) hybrid and advanced lean burn technology models.

       Based on the above comparison, low GHG-emitting vehicles reduce petroleum
consumption as  much, and in many cases more,  than qualifying hybrid and advanced lean burn
technology vehicles already defined by NDAA 2008 as AFVs. As a result, we believe that low
GHG-emitting vehicles achieve a significant reduction in petroleum consumption and should
qualify as AFVs under section 2862 of NDAA 2008.
                                          V

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        /ailable Hybrid and Advanced Lean Burn Technology Vehicles
    Make
                               Fuel Type
                                       Technoiogy
                                         type
Combined MPG
  MY 2009
 Annual Average
Gallons Consumed
 (Based on 10,000
  IVIiles Driven)
GHG
score
EPA tow GHG
  Emitting
  Vehicle?
 rucks
    Ford
              Escape Hybrid 2WC
                 ue Green Ltne
              liohiande? HybncUW
                 385
                 400
             RX 40Qh 2WD gnd
               fahoe Hybrid 2W
                Yukon Hybrid
               Taftoe Hybrid 4W[
                                         Hybrn
    6MC
                               Gasoline
     >s-Benz
              R:
                     TEC
                                        Lean B
                 500
                 500
    ides-Be
              ML320 SLUE TEC
               GL320 BLUE TEC
                                        Lean By
2. Comparison of low GHG-emitting vehicles to traditional AFVs currently acquired by
many federal agencies, specifically FFVs


       In general. FFVs currently offered by manufacturers are larger, more powerful types of
passenger cars and light-duty trucks.  When run on gasoline, only one FFV model qualifies as a
low GHG-emitting vehicle, 'the Chevrolet HHR  (a light duty truck).  As a result, when federal
agencies acquire FFVs and place them in areas where the appropriate alternative fuel (usually
E85) is not available, they are forced to operate them with gasoline, thereby consuming more
petroleum than if they had acquired low GHG-emitting vehicles.

       For example, the most fuel efficient passenger car FFV. when run on gasoline, is the
Chevrolet Impala. However, it does not qualify  as a low GHG-emitting vehicle when run on
gasoline because it only achieves a combined fuel economy of 23 MPG. A low GHG-emitting
vehicle, such as the Chevrolet Cobalt or the Pontiac G5. uses significantly less petroleum.  The
Cobalt and G5 both achieve a combined fuel economy of 30 MPG. Operating a Cobalt or G5  (or
any similar low GHG-emitting vehicle) 10.000 miles per year  would achieve a petroleum
reduction of 102 gallons per year compared to operating the Impala FFV with gasoline.

       Table 2 shows a broad comparison of the fuel consumption of a variety of low GHG-
emitting vehicles compared to FFVs. All low GHG-emitting vehicles consume less petroleum
than FFVs running on gasoline.
                                           VI

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Table 2,  Low GHG-Emitting Vehicles Compared to FFVs Running on Gasoline
                                Technology
                                  Type
 Combined
Gasoline MPG
  MY 2009
 Annual Average
Gallons Consumed
 (Based on 10,000
  Miles Driven)
Petroieum Savings
 Using tow GHG
Emitting Vehicles*
  (gallons/year)
GHG
score
 Qualify As
EPA low GHG
  Emitting
  Vehicle?
 Trucks
     Jeep
                  Compass
                                Gasoline
                                                          400
                                                                       126
                                                                                         Yes
     Jeep
                   Patriot
                                Gasoline
                   Rogue
                                                                                         Yes
     Ford
                   Escape
                                Gasoline
                                                                                         Yes
                                                                                         Yes
     Ford
                   Raofler
                                Gasoline
                                             23
    Mercury
                   Mariner
                                Gasoline
                                             23
                                                         435
    Subaru
                Oulbeck Wagon
                                                                                         Yes
                  Outiander
                                Gasoline
                                             22
                                                          455
                                                                                         Yes
                    CR-V
                                Gasoline
                                                                       72
                                                                                         Yes
    Saturn
                                                          455
   Chevrolet
                                  FFV
                                                                                         Yes
    Dodge
                  Caravan**
                                             19
                                                         526
   • Chfysier
                Town and Country
                                  FFV
   Chevrolet
                   Tahoe
                                                                       -62
     CMC
                   Sierra
     GMC
                   Yukon
                                  FFV.
                                             •16
                                                         625
     Ford
                  Expedition
                                                                                         No
     Ford
                                  FFV
                                             16
                                                         625
 'assenger Cars
                           that does not qualify as a low GHG-emiftina
 " Best FFV tnat does not quanty as e low bHG-emtttina vehicle
       In addition, we understand that DOE issued approximately 70.000 fuel waivers in FY
2007 to operate FFVs on gasoline.  If these 70.000 vehicles were low GHG-emitting vehicles
like the Chevrolet Cobalt or Pontiac G5 instead of the Impala. federal agencies could have saved
approximately 7.1 million gallons of gasoline (170.000 barrels of petroleum) and avoided
approximately 86,205 tons of CO^e emissions.

       As demonstrated here, on both an individual vehicle comparison and a fleet-wide
comparison, low GHG-ernitting vehicles achieve a significant reduction in petroleum
consumption compared to FFVs operating on gasoline.  We believe it is reasonable to conclude
that low GHG-emitting vehicles should qualify as AFVs under section 2862 of NDAA 2008.

SUMMARY:

       Based on comparisons of low GHG-emitting vehicles to hybrids and advanced lean burn
technology motor vehicles, which are both now considered AFVs as a result of NDAA 2008, and
to traditional AFVs currently acquired by many federal agencies. EPA has demonstrated that low
GHG-emitting vehicles, as defined in EPA's draft guidance, achieve a significant reduction in
                                            VII

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petroleum consumption. Operating low GHG-emitting vehicles, where a stable supply of
appropriate alternative fuel is not available, will allow federal agencies to reduce their petroleum
consumption, save money on capital and fuel costs, and create a more flexible and cohesive
EPAct92 program that allows agencies to acquire the most appropriate vehicles for their very
diverse applications and geographic areas.

       We believe this demonstration of the ability of low GHG-emitting vehicles to achieve a
significant reduction in petroleum consumption provides DOE the flexibility to include low
GHG-emitting vehicles in the expanded definition of AFVs under section 2862 of NDAA 2008.

       Please let me know if this demonstration is sufficient to include low GHG-emitting
vehicles in the expanded definition of AFVs. If you have any questions about this
demonstration, please do not hesitate to contact me. Additionally, for more information, your
staff can contact Mitchell Greenberg, Manager of EPA's SmartWay Transport Partnership, at
(202)343-9269.

                                        Sincerelv,
                                         Robert J. Meyers!"
                                         Principal Deputy Assistant Administrator
 Enclosure
 cc:    Mr. Richard Kidd
       Program Manager. Federal Energy Program Manager

       Mr. Brad Gustafson
       Supervisor. FEMP Fleet Team

       Mr. Christopher Calamita
       U.S. DOE. Office of General Counsel

       Mr. Steven Silverman
       U.S. EPA. Office of General Counsel
                                          VIII

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