Guidance for Implementing Section 141
            of the Energy Independence and Security
            Act of 2007

            Federal Vehicle Fleets and Low Greenhouse
            Gas-Emitting Vehicles
&EPA
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
                         Climate Analysis and Strategies Center
                          Transportation and Climate Division
                         Office of Transportation and Air Quality
                         U.S. Environmental Protection Agency
                           Issuance Date: February 22, 2010
                              Updated: May 10, 2016
&EPA
United States
Environmental Protection
Agency
EPA-420-B-16-055
May 2016

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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?	3
V.   What is a low GHG-emitting vehicle as it applies to EISA §  141?	4
VI.  How do I find and identify low GHG-emitting vehicles?	5
VII.  Why do some vehicles on EPA's federal fleets web site have two GHG emissions levels?. 6
VIII. What if a vehicle intended for acquisition is not listed on EPA's federal fleets web site? ... 6
IX.  Will a vehicle's GHG emissions level ever change?	6
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?	9
      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)?	11
XI.  What are Electric Vehicles (EVs) and how are they included in this guidance document?  12
XII.  What if the vehicle that I am interested in purchasing only qualifies as a low GHG-
emitting vehicle using an alternative fuel?	12
XIII. How do the requirements of EISA § 141 interact with the requirements of EPAct92  §
303(b) (42 U.S.C. § 13212(b))?	13
XIV. How are MDPVs addressed?	14
XV.  Are government-owned contractor-operated vehicles included?	14
XVI. What about vehicles purchased in the United States and operated outside of the  United
States?	15
XVII. What if my agency wants to acquire vehicles that are from a model year prior to model
year 2010?	15
XVIII.What are the recordkeeping requirements?	15
XIX. What are the reporting requirements?	16
XX.  Contact Information	16
Appendix A	17
Appendix B	19

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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 federal fleet web site 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. EISA § 141 also does not apply to used vehicles that
the General Services Administration reassigns from one agency to another. 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 Buick Regal,  Chevrolet Malibu, Ford Focus,
Chrysler 200  and Dodge Charger. Examples of light-duty trucks, which includes both small and
large SUVs, are Buick Enclave, GMC Terrain, Ford F150 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, Chevrolet Suburban and GMC Yukon. Heavy duty trucks
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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(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.

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, which can be
found at www.gpoaccess.gov/gmanual/index.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), or whether it is a law enforcement, emergency,
or military vehicle.

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IV.    How does EPA quantify the tailpipe GHG emissions from light-duty motor vehicles?
The greenhouse gases carbon dioxide (CCh), methane (CFU) and nitrous oxide (N2O) are emitted
from most operating motor vehicles' tailpipes.2 Factoring in the global warming potential of
each gas provides a vehicle's CO2 equivalent (CChe) emissions.  CO2 comprises the majority of
tailpipe greenhouse gas emissions (approximately 99% of overall GHG emissions for new light-
duty vehicles)3 and is dependent on the amount of fuel combusted. A vehicle's CH4 andN2O
emissions are largely dependent on the vehicle's emissions control equipment and miles traveled.

For model year (MY) 2012 and earlier, EPA quantified greenhouse gases as CChe using
emissions factors that are based on vehicle emission test results and fuel characteristics. The
CO26 emission factors that were used are provided in Table 1 below.
Table 1 : Tailpipe CChe Emissions Per Fuel Type

Fuel Type
Gasoline
Diesel
E85
CNG
C02
Pounds/Gallon
19.59
22.44
13.88
15.50
Grams/Gallon
8,8874
10,1806
6,2958
7,03010
CH4 and N2O
Grams/Mile
1.95
0.47
4.09
6.811
In MY 2013, EPA began using carbon dioxide (CCh), and not CChe, as the basis for determining
EISA 141 compliant vehicles. Why? The rulemaking "Revisions and Additions to Motor Vehicle
Fuel Economy Label" requires that CO2 emissions in grams per mile (g/mile) appear on the new
motor vehicle fuel economy label beginning with MY 2013 vehicles.12 Specific vehicle CO2
emissions data is now available and publicized on the label and fuelconomy.gov. In order to
provide consistent data and messaging to the public, EPA decided to base the EISA 141
compliant vehicle list on this publicly available CO2 emissions data. Because emissions of N2O
and CH4 are very low relative to CO2, we do not believe accounting for them in the EISA 141
criteria would significantly increase our ability to differentiate between vehicles.
2 Electric vehicles and hydrogen fuel cell vehicles do not emit GHGs from the tailpipe.
3 See 75 FR 25396.
4 Value is based on indolene fuel, a specific EPA test fuel.
5 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.
6 Value calculated based on 40 C.F.R.  600.113 carbon content.
7 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.
8 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 (C2HsOH) using the periodic table of
elements. The table 1 value is comprised of 83% ethanol and 17% gasoline, accounts for 2% denaturant in ethanol.
9 GREET vl.Sb available inRFS2 docket # EPA-HQ-OAR-2005-0161-0956 (spreadsheet "Vehicles").
10 GREET vl.Sb available inRFS2 docket # EPA-HQ-OAR-2005-0161-0925.1 (spreadsheet "Emission Factors").
11 GREET vl.Sb available inRFS2 docket # EPA-HQ-OAR-2005-0161-0956 (spreadsheet "Vehicles").
12 See FR Doc No 2011-14291.
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V.     What is a low GHG-emitting vehicle as it applies to EISA § 141?

For MY 2012 and earlier, EISA 141 compliance was based on GHG scores available on EPA's
Green Vehicle Guide.  Any vehicle that achieved a GHG rating of 7 or higher was considered a
low GHG-emitting vehicle. Because of the limited number of light-duty trucks and light-duty
flexible fuel vehicles (FFVs) that achieved a GHG rating of 7 or higher, EPA concluded that for
the early years of this program, it was appropriate to lower the minimum GHG rating for these
vehicles as follows: light-duty trucks that operated with gasoline, diesel or CNGthat achieved a
GHG rating of 6 or higher qualify, flexible fuel light-duty passenger cars that achieved a GHG
rating of 6 or higher when operated with alternative fuel qualify, and flexible fuel light-duty
trucks that achieved  a GHG rating of 5 or higher when operated with alternative fuel qualify.
These adjustments increased options for federal agencies, while still maintaining relatively low
GHG emissions performance for these vehicles.
Table 2. EPA GHG Ratings Needed to Qualify as a Low GHG-Emitting Vehicle for MY 2012 and earlier
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 of MY 2013, EISA 141 compliance levels are based on specific CO2 g/mile maximum
emissions levels. EPA will analyze the tailpipe CO2 emissions from all light-duty motor vehicle
configurations (cars and light-duty trucks) manufactured for sale in the U.S. for the prior model
year in order to project the maximum allowable CO2 emissions levels for the subsequent model
year, with distinct designations for cars and LD trucks/MDPVs. The goal in determining the
appropriate CO2 emissions level threshold for any given model year will be to designate the top
25% (approximately) of lowest GHG-emitting cars and LD trucks/MDPVs as EISA 141
compliant (based on analysis of the previous model year vehicle data).13

For MY 2013 - MY 2015, EPA continued to adjust the EISA 141 compliance levels for light-
duty flexible fuel vehicles (FFVs) operating on E85. The maximum CO2 (g/mi) levels for FFV
passenger cars and FFV passenger trucks was set at 45 g/mi higher (equivalent to one point on
GVG rating for earlier MYs) than the standard threshold for each class.

As of model year 2016, FFVs will have the same thresholds as other cars and trucks.14 However,
agencies still need to determine if an FFV will be operated on gasoline or on E85 to find the
13 By statute, EPA cannot designate any vehicle as low-GHG emitting if its emissions are higher than the most
stringent applicable standards ".. .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." (See Appendix A). To meet this requirement, EPA will ensure that the maximum allowable CCh
levels for EISA 141 are set at or below EPA's estimated projected industry fleet-wide tailpipe CCh emissions
compliance levels for cars and trucks in the light-duty vehicle GHG standard applicable for that model year.

14 The rulemaking "Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy
Standards" provides credits for MY2012-MY2015 FFVs based, in part, on a downward adjustment to the vehicle's
tailpipe CC>2 emissions rate when operating on alternative fuel (see 75 FR 25432). Because the EISA 141 statute
allows EPA to take into account such emissions allowances and adjustments factors when determining whether to
designate a vehicle as low-GHG emitting, EPA has determined it is permissible to set EISA141 maximum allowable
CCh thresholds for FFVs operating on  E85 higher than the projected fleet-wide compliance level through MY2015.
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applicable tailpipe CO2 emissions level for that vehicle model (see section VII for more details.)
Many FFVs have lower tailpipe CO2 emissions when operated on E85 than on gasoline and this
could result in certain vehicle models only qualifying as low GHG-emitting if operated on E85.
Table 3. Model Year 2016 & MY 2017 EISA 141 Compliance Thresholds
(maximum CCh emissions level)
Passenger cars
Light-Duty Trucks, MDPVs
300 g CO2/mile
375 g CO2/mile
The joint EPA/DOE web site fuel economy. gov lists the CO2 emissions in grams/mile for each
light-duty motor vehicle model manufactured for sale in the United States.

EPA analyzes fleet data every model year. As a result, the compliance thresholds are subject to
change. Additionally, EPA may choose to designate models as compliant that have the same
engine, transmission, and chassis as qualified models, but due to test variability, did not qualify.
Please check EPA's EISA 141/Federal Vehicle Acquisition page
(http://epa.gov/otaq/climate/regs-fleets.htm) for program and compliance level updates.

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

EPA's federal fleets website provides agencies with up-to-date model year lists of all  qualifying
low GHG-emitting vehicles that are available for sale in the United States. Users can also use
fuel economy. gov to look up the tailpipe CO2 g/mile emissions of any individual light-duty
vehicle for sale in the U.S. and compare that to the applicable EISA 141  compliance threshold
for either passenger cars or light-duty trucks and MDPVs to see if the vehicle qualifies as low
GHG-emitting. For purposes of this program, passenger cars include two-seaters, mini-
compacts, subcompacts, compacts, midsize sedans, large sedans, and station wagons.  The light-
duty truck and medium-duty passenger vehicle category includes light trucks, SUVs, minivans,
vans,  and special purpose vehicles.15

Beginning in MY 2013, vehicle manufacturers are required to provide the CO2 (g/mi) emissions
for all applicable vehicles, including any optional  equipment which may alter the emissions, in
U.S. General Services Administration's  (GSA) AutoChoice. If an agency selects optional
equipment, which includes but is not limited to engines and transmissions, the corresponding
CO2 (g/mi) emissions rate for the selected vehicle will be shown. For any vehicle where OEM
CO2 (g/mi) emissions are unavailable in AutoChoice, this information may be obtained
from fueleconomy.gov.
However, the light-duty GHG emissions standards do not provide these credits to FFVs after MY 2015. Therefore
EPA is also removing the 45 g CCVmi compliance break for FFVs under EISA section 141 starting with model year
2016.
15 "Light-duty vehicle," "light-duty truck," and "medium-duty passenger vehicle" are defined in 40 CFR
86.1803-01. Generally, the term "light-duty vehicle" means a passenger car, the term "light duty truck" means a
pick-up truck, sport-utility vehicle, or minivan of up to 8,500 Ibs gross vehicle weight rating, and "medium-duty
passenger vehicle" means a sport-utility vehicle or passenger van from 8,500 to 10,000 Ibs gross vehicle weight
rating.
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If "N/A" is associated with a vehicle's CO2 emissions, 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 light duty large trucks with a gross vehicle weight over 8500 Ibs.

The GHG emissions of motor vehicles varies across vehicle models as well as across different
configurations within a vehicle model. Therefore, it is imperative that an agency verify the
specific vehicle's CO2 emissions using EPA's federal fleets web site or fueleconomy.gov prior to
acquiring the vehicle.

EPA's federal  fleets web site and fueleconomy.gov are updated regularly to reflect new
emissions data submitted by vehicle manufacturers throughout the model year. For the most up-
to-date list of available low GHG-emitting vehicles, an agency should always reference the
EPA's federal  fleets web site.

VII.   Why do some vehicles on EPA's federal fleets web site have two GHG emissions
levels?

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 CO2 emission
rates in Table 1. For example, FFVs that operate with either gasoline or an alternative fuel (e.g.,
E85) will list two emissions levels,  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 emissions level 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 federal fleets web
site?

EPA's federal  fleets web site 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 EPA's federal fleets web site
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.

IX.    Will a  vehicle's GHG emissions level ever change?

An agency should document a motor vehicle's GHG emissions16 at  the time a vehicle is
acquired. This  will avoid any question of a vehicle's GHG emissions level for reporting
purposes. When an agency acquires a vehicle through GSA, the point of acquisition occurs when
the agency orders the vehicle from GSA.
16 For MY2013 and later, the term GHG emissions should be understood as referring to CC>2 emissions.
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Occasionally, a vehicle manufacturer may update or modify its vehicle certification data
submitted to EPA as described in section IV of this guidance document. These updates or
modifications may result in an updated GHG emissions level. This should occur only rarely and,
as stated above, federal agencies should use the GHG emissions information assigned to the
vehicle at the time of acquisition.

Each model year EPA will evaluate the fleet's GHG emissions 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 emissions threshold for designating low GHG vehicles
will change from one model year to the next. GHG emissions for those vehicles in which more
advanced engine technology is added will likely decrease. As a result, a vehicle with similar
GHG emissions performance as previous model years is not guaranteed to be designated low
GHG gas emitting each subsequent model year.

In any instance, federal agencies should document a vehicle's GHG emissions performance 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.

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.

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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
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.

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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 EPA's federal fleets web site at
http://epa.gov/otaq/climate/regs-fleets.htm.

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.

       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

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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 ratings.

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 EPA's federal fleets web site. 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 the GHG g/mile emissions for each light duty motor vehicle
and MDPV they intend to acquire during the period specified by the agency into
the Federal Vehicle GHG Emissions Calculator in the Assessment Tool. 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 141 GHG emissions limit.
   3.  It compares the  agency's aggregate GHG emissions to its EISA 141 GHG
       emissions limit.

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

                             10

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       would modify the average annual mileage value used to calculate the agency's
       aggregate GHG emissions.

       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
       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 continue to evaluate the impact of aggregating motor vehicle GHG
       emissions 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.
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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. Plug-in hybrid electric vehicles (PHEVs)
can be charged by a source off the vehicle like an EV and can also be operated on a conventional
fuel like gasoline.

EVs are considered zero-emissions vehicles because they do not produce tailpipe CO2 emissions.
As a result, they are considered low GHG-emitting vehicles for EISA 141. PHEVs do produce
tailpipe emissions from operation on gasoline. As for other vehicles, fleet managers can
determine the CO2 (g/mi) emissions for HEVs and PHEVs on EPA's federal fleets web site.

Similar to conventionally fueled vehicles, as described in section IV of this guidance document,
manufacturers must properly certify EVs and PHEVs with EPA before introducing these vehicles
into commerce.

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 GHG emissions requirements for MY 2015 and earlier FFVs to be
considered low GHG-emitting vehicles when operated with E85 are less stringent than for
dedicated gasoline-fueled vehicles. If a vehicle only qualifies as a low GHG-emitting vehicle
when operated with E85, the vehicle must be operated with E85 in order to be considered a low
GHG-emitting vehicle. As of model year 2016, FFVs have the same thresholds as other cars and
trucks. However, agencies still need to determine if an FFV will be operated on gasoline or on
E85 to find the applicable tailpipe CO2 emissions level for that vehicle model. Many FFVs have
lower tailpipe CO2 emissions when operated on E85  than on gasoline and this could result in
certain vehicle models only qualifying as low GHG-emitting if operated on E85. The fuel type
used to determine the GHG emissions level is clearly identified on EPA's federal fleet website.

To use the GHG emissions threshold 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 rating 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 emissions level for each vehicle is the GHG emissions g/mile 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

                                           12

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GHG Emissions Calculator within the GHG emissions level 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/find_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. Even with the less stringent GHG emissions 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 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


                                           13

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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.

Including low GHG-emitting vehicles in the expanded definition of an AFV 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?

MDPVs are covered vehicles under EISA § 141. 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.  Corporate average fuel economy standards did not apply
to MDPVs until model year 2011; therefore, EPA has only limited data on their GHG emissions
prior to model year 2011.

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
                                           14

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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
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
       mrtrlol -voftr- 'JO! O9
       model year 2010?
EPA's federal fleets web site provides vehicle information going back to model year 2009. The
GHG emissions thresholds established in model year 2010, the first year of EISA 141
implementation, shall be used as the basis for determining low GHG emitting vehicles for model
2009.

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

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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
g/mile emissions.

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.

As of fiscal year 2011, DOE requires federal agencies to include information regarding the
acquisition of low GHG-emitting vehicles in the Federal Automotive Statistical Tool (FAST) on
an annual basis. 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.
XX.   Contact Information

Kristin Kenausis
Office of Transportation and Air Quality
US EPA
(202)343-9225
kenausis.kristin@epa.gov

Susan Burke
Office of Transportation and Air Quality
US EPA
(202)343-9098
burke.susan@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.— Eachyear, 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.

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"(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
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.".
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                                  Appendix B
                               ENVIRONMENTAL             AGENCY
                              WASHINGTON, D.C.  20460
Mr. John Mizroch
Acting Assistant Secretary
Office of Energy Efficiency and Renewable Energy
U.S. Department of Energy
Room 6a-013/ForrestaI 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 141 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 to 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 (DOE's) 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 demons!ration 10 DOE that  low GHG-emitiing vehicles, as
defined in EPA's enclosed draft guidance, achieve a significant reduction in petroleum
consumption.
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BACKGROUND:

       In 2006. F.PA developed a GHG scoring system that assigns every car and light truck a
GHG score from 0 io 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 am 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
aeencies about how the new EISA § 141 requirements will be integrated into their existing
F.PAct92 program that requires the acquisition of AFVs.  Many AFVs -- particularly flexible fuel
vehicles (FFVs) that are capable of operating with both gasoline and H85   will not qualify as
low GFlG-emitting vehicles, especially if the agency intends to operate the vehicle with
gasoline .

       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-emitting 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 thai 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 !o« (jHG-eirmime vehicle when operated with gasoline - the
Chevrolet HHR. which is a liaht dulv truck
                                       20

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vehicles 10 the first ihree types of vehicles now considered AFVs as a result oi'NDAA 2008 and
to traditional AFVs currently acquired by many federal agencies, specifically FFVs,

I. Comparison of low GHG-emitling vehicles to the first three types of vehicles now
considered AFVs as a result of NDAA 2008

       The first three vehicle types are defined by the Internal Revenue Sen ice (IRS) for
purposes of the Alternative Motor Vehicle Credit (26 U.S.C. § 30B). Both advanced lean bum
technology1 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-duly truck requires a minimum combined
gasoline fuel economy of 22 MPG (25  MPG for diesel powered trucks). EPA's definition of a
low GHG-emitling 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 lo\\ GHG-emitting vehicles provide better fuel consumption
performance than 32% of the qualifying hybrid and advanced lean bum 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
03 and G5, Toyota Corolla and Yaris.  and the Honda Fit. F.ach 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-emitling vehicles achieve a significant reduction in petroleum consumption and should
qualify as AFVs under section 2862 of NDAA 2008.
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Table 1 Availah'e Hybrid and Advanced Lean Burn Technology Vehicles ... 	
Mltw
"rucks
Mercury
t-pre
Mai-OS 	
M&zde
Mercury
rord
Ssiurn
Toyota
Le»us
Chevrolet
- Chevrolet
CMC
Mercedes-Ben;
Merceaes-Benz
Mercedes-Ben;
Passenger Cai
Tpyoia
Tovoia
Volkswaqen
'Volkswagen "
Chevrolet
- fcettJSv,- :••:
Model
Mr-r'r.e' Hvbric rwD
Escaat Hvc«c c
Hyt id
Hvt iC
Hvb 13
Hrtl 10
Hvb id
Hvb C
Hybrid
Lean Burn
f Hybrid
Hybrid
HvbrW
Lean Burn
Lean Burn
Hybrid
Hybrid
j. -Hybrid: •:.
Combined MPG
MY 2009

35
26
28
26
_
21
20
20
20
u
I 35
<2
34
— -
"~ 33 *~
^^^2^^^^
Annual Average
Gailcns CQrisunied
iBased on 10.000
Miles Driven}
	 303 	 [
303
312
' 367
400
476
476
SOB
500
500
626
2V7
236
294
2S4
303
MS
^^^34^^^^

GHG
score

f,
6
5
4
4
10
10
8
~8~~
ma

QuahJyAs
EPA tow GHG
Emitting
Vehicle?

Ye^
Yes
Yes
VffS
No
No
Vee
Yes
Yes
-^S—
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 uasoline. 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
£85) 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 Co. uses significant)} 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.
                                         22

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Table 2, Low GHG-Emitling Vehicles Compared to FFVs Running on Gasoline
                               Techrioiogy
                                 Type
 Combined
Gasoline MPG
  MY 2009
 Annual Average
Gallons Consumed
 (Based on 10,000
  Miles Driven)
Petroleum Savings
 Using Low GHG
Emitting Vehicles'
  (gallons/year}
GHG
score
 Qualify As
EPA low GHG
  Emitting
  Vehicle?
Trucks
                  Compass
                                                                      126
                                                                                        Yes
                   Patriot
                                Gasoline
                                                                                        Yes
                   Rogue
                                                         417
                                                                      no
                                                                                        Yes
     Ford
                   Escape
                                Gasoline
                                                                                        Yes
                                                                                        Yes
     Ford
                   Ranger
                                Gasoline
                                             23
                                                                       92
    Mercury
                   Mariner
                                Gasoline
                                             23
                                                         435
    Subaru
                OiiibacK Wsflon
                                Gasoline
                  Outlsnder
                                Gasoline
                                                         «5S
                                                                       72
                                                                                        Yes
    Honda
                   CR-V
                                Gasoline
                                                                       72
                                                                                        Yes
    Saiyrri
                                Gasoline
                                                         455
   Chevrolet
                                  FFV
    Dodge
                  Caravan**
    Chrysler
               Town and Country
                                 FFV
   Chevrolet
                   Tahoe
                                                                      -62
    GMC
    GMC
                   Vutson
                                 FFV
                                                         625
                                                                       -99
    : Ford
                  Expedition
                                                         625
                   FtSO
                                 FFV
                                                         625
 'assenger Cars
     eum savings compared to best FFV that does not qualify as a low
       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 7J million gallons of gasoline (170,000 barrels of petroleum) and avoided
approximately 86,205 tons of CG^e emissions.

       As demonstrated here, on both an individual vehicle comparison and a fleet-wide
comparison, low GHG-emitting vehicles achieve a significant reduction in petroleum
consumption compared to FFVs operating on  gasoline. We believe it is reasonable to conclude
lhat 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
                                            23

-------
petroleum consumption. Operating low GHG-ernitting vehicles, where a stable supply of
appropriate alternative fuel is not available, will allow federal agencies to reduce their petroleum
consumption, save money on capita] 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 Smart Way Transport Partnership, at
(202)343-9269.

                                        Sincerely,
                                        Robert .1. Meyer
                                        Principal Deputy Assistant Administrator
 Enclosure
 cc:    Mr. Richard Kidd
       Program Manager, Federal Energy Program Manager

       Mr. Brad Gustafson
       Supervisor. FEMP Fleet Team

       Mr. Christopher CaJamita
       U.S. DOE, Office of General Counsel

       Mr. Steven Silverman
       U.S. EPA. Office of General Counsel
                                          24

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