Federal Energy Management
Agencies Are Acquiring Alternative Fuel Vehicles but Face Challenges in Meeting Other Fleet Objectives Gao ID: GAO-09-75R October 22, 2008Congress and the administration set forth energy objectives for federal fleets with 20 or more vehicles. Agencies are to (1) acquire alternative fuel vehicles (AFV) as 75 percent of all new light-duty vehicle acquisitions; (2) use only alternative fuel in AFVs, unless granted a waiver; (3) increase overall alternative fuel use by 10 percent annually; (4) reduce petroleum consumption by 2 percent annually through 2015; and (5) purchase plug-in hybrid electric vehicles when available and at a reasonable cost. The first two objectives are requirements in the Energy Policy Acts (EPAct) of 1992 and 2005. The last three are goals set by Executive Order 13423. GAO was asked to determine agencies' compliance with these objectives for fiscal year 2007 and how agencies are poised to meet them in the future. GAO obtained and analyzed information from the Department of Energy's (DOE) automotive database and other sources and interviewed agency officials.
Federal agencies had mixed results in meeting the energy objectives for fleets in fiscal year 2007. First, all the agencies reported meeting or exceeding the requirement to acquire AFVs. However, they did so partly based on receiving credit for AFVs not subject to the requirement, as allowed by the DOE's implementing guidance. For example, AFVs outside large metropolitan areas do not count when agencies establish their acquisition targets, but they do count toward meeting the targets. Second--regarding the requirement to use only alternative fuel in AFVs--neither DOE nor the agencies reported on whether agencies were in compliance with the requirement for fiscal year 2007, even though they are required by law to make such reports. According to agency officials, current systems are unable to track alternative fuel use at the level necessary to assess compliance. However, data from 2006 indicate that agencies primarily fueled their AFVs with gasoline--not alternative fuel--and our analysis found no evidence that this changed in 2007. Data reliability is a concern with respect to the third and fourth objectives. While about half of the agencies reported increasing their alternative fuel use by 10 percent and about two-thirds reported reducing petroleum use by 2 percent in 2007, persistent data problems call these results into question. Finally, no agency acquired plug-in hybrid electric vehicles because they were not commercially available. Over the next few years, agencies will likely face challenges in meeting all but one of the fleet energy objectives. As they have over the past 4 years, agencies will likely continue to acquire the mandated percentage of AFVs. However, they will likely find it more difficult to meet both the requirement to fuel AFVs only with alternative fuel and the goal of increasing overall alternative fuel use by 10 percent annually because of the limited availability of alternative fuel. It is uncertain whether agencies will be able to reduce petroleum consumption annually by 2 percent in the near future, primarily because they will not be able to rely on alternative fuel to displace significant amounts of petroleum fuel. Furthermore, without better data, it will be difficult to judge agencies' progress in reducing petroleum consumption and increasing alternative fuel use. Some agencies have taken steps to address these issues and improve data quality, but with limited success. Finally, agencies will not be able to meet the goal of acquiring plug-in hybrid electric vehicles until they become commercially available.
RecommendationsOur recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director: Team: Phone:GAO-09-75R, Federal Energy Management: Agencies Are Acquiring Alternative Fuel Vehicles but Face Challenges in Meeting Other Fleet Objectives
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GAO Highlights:
Highlights of GAO-09-75R, a correspondence to congressional requesters.
Why GAO Did This Study:
Congress and the administration set forth energy objectives for federal
fleets with 20 or more vehicles. Agencies are to (1) acquire
alternative fuel vehicles (AFV) as 75 percent of all new light-duty
vehicle acquisitions; (2) use only alternative fuel in AFVs, unless
granted a waiver; (3) increase overall alternative fuel use by 10
percent annually;(4) reduce petroleum consumption by 2 percent annually
through 2015; and (5) purchase plug-in hybrid electric vehicles when
available and at a reasonable cost. The first two objectives are
requirements in the Energy Policy Acts (EPAct) of 1992 and 2005. The
last three are goals set by Executive Order 13423. GAO was asked to
determine agencies‘ compliance with these objectives for fiscal year
2007 and how agencies are poised to meet them in the future. GAO
obtained and analyzed information from the Department of Energy‘s (DOE)
automotive database and other sources and interviewed agency officials.
What GAO Found:
Federal agencies had mixed results in meeting the energy objectives for
fleets in fiscal year 2007. First, all the agencies reported meeting or
exceeding the requirement to acquire AFVs. However, they did so partly
based on receiving credit for AFVs not subject to the requirement, as
allowed by the DOE‘s implementing guidance. For example, AFVs outside
large metropolitan areas do not count when agencies establish their
acquisition targets, but they do count toward meeting the targets.
Second”regarding the requirement to use only alternative fuel in
AFVs”neither DOE nor the agencies reported on whether agencies were in
compliance with the requirement for fiscal year 2007, even though they
are required by law to make such reports. According to agency
officials, current systems are unable to track alternative fuel use at
the level necessary to assess compliance. However, data from 2006
indicate that agencies primarily fueled their AFVs with gasoline”not
alternative fuel”and our analysis found no evidence that this changed
in 2007. Data reliability is a concern with respect to the third and
fourth objectives. While about half of the agencies reported increasing
their alternative fuel use by 10 percent and about two-thirds reported
reducing petroleum use by 2 percent in 2007, persistent data problems
call these results into question. Finally, no agency acquired plug-in
hybrid electric vehicles because they were not commercially available.
Over the next few years, agencies will likely face challenges in
meeting all but one of the fleet energy objectives. As they have over
the past 4 years, agencies will likely continue to acquire the mandated
percentage of AFVs. However, they will likely find it more difficult to
meet both the requirement to fuel AFVs only with alternative fuel and
the goal of increasing overall alternative fuel use by 10 percent
annually because of the limited availability of alternative fuel. It is
uncertain whether agencies will be able to reduce petroleum consumption
annually by 2 percent in the near future, primarily because they will
not be able to rely on alternative fuel to displace significant amounts
of petroleum fuel. Furthermore, without better data, it will be
difficult to judge agencies‘ progress in reducing petroleum consumption
and increasing alternative fuel use. Some agencies have taken steps to
address these issues and improve data quality, but with limited
success. Finally, agencies will not be able to meet the goal of
acquiring plug-in hybrid electric vehicles until they become
commercially available.
Table: Agency Performance in Meeting the Fleet Energy Objectives,
Fiscal Year 2007:
Source of objective: Energy Policy Act of 1992;
Agencies' fiscal year 2007 fleet energy objective: Requirement: Acquire
AFVs for 75 percent of new light-duty acquisitions by fleets of 20 or
more vehicles in metropolitan statistical areas of 250,000 or more;
Number of agencies meeting objective: 21;
Percentage of agencies meeting objective: 100.
Source of objective: Energy Policy Act of 2005;
Agencies' fiscal year 2007 fleet energy objective: Requirement: Must
use only alternative fuel in AFVs. (DOE may waive requirement if
operating on alternative fuel is not feasible, which DOE defines as
fuel being unavailable within 5 miles or 15 minutes or costs 15 percent
more than gasoline.);
Number of agencies meeting objective: 0[A];
Percentage of agencies meeting objective: 0[A].
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Increase
overall alternative fuel use by at least 10 percent annually, relative
to the 2005 baseline;
Number of agencies meeting objective: 11;
Percentage of agencies meeting objective: 52.
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Reduce
petroleum consumption by 2 percent annually through fiscal year 2015,
relative to the 2005 baseline;
Number of agencies meeting objective: 14;
Percentage of agencies meeting objective: 67.
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Acquire plug-
in hybrid electric vehicles when they are commercially available at a
reasonable cost;
Number of agencies meeting objective: 0;
Percentage of agencies meeting objective: 0.
Source: GAO analysis of DOE data.
[A] We estimated compliance for this objective in the aggregate only;
not for each agency.
[End of table]
What GAO Recommends:
GAO recommends that DOE (1) report on agencies‘ compliance with the
requirement to use alternative fuel in AFVs, (2) revise its guidance to
disallow AFV credits for AFVs not subject to the acquisition
requirement, and (3) continue to work with the General Services
Administration to resolve data-quality issues. Congress should consider
aligning the federal fleet AFV acquisition and fueling requirements
with current alternative fuel availability and revising them as
appropriate.
To view the full product, including the scope and methodology, click on
[http://www.gao.gov/cgi-bin/getrpt?GAO-09-75R]. For more information,
contact Mark Gaffigan at (202) 512-3841 or gaffiganm@gao.gov.
[End of section]
October 22, 2008:
The Honorable Joseph I. Lieberman:
Chairman:
Committee on Homeland Security and Governmental Affairs: United States
Senate:
The Honorable Mark Pryor:
United States Senate:
The Honorable John Warner:
United States Senate:
Two-thirds of the oil consumed in the United States is used for
transportation. The federal government's domestic vehicle fleet
consists of about 600,000 civilian and nontactical military vehicles
and consumes over 963,000 gallons of petroleum-based fuel per day.
Although the federal fleet represents less than 1 percent of all
vehicles on the road in the United States today, Congress and the
administration have established energy conservation objectives for the
federal fleet in an effort to provide leadership in reducing petroleum
consumption. These objectives are established in federal law and
executive orders and cover 21 federal agencies.[Footnote 1] Agencies
are required by law to:
* acquire alternative fuel vehicles (AFV),[Footnote 2] such as flex-
fuel vehicles that can run either on gasoline or a blend of up to 85
percent ethanol and 15 percent gasoline (E85);[Footnote 3] and:
* fuel AFVs exclusively with alternative fuel,[Footnote 4] unless
exempted by waiver.
In addition, agencies are tasked by executive order to meet the goals
of:
* increasing overall alternative fuel use by at least 10 percent
annually relative to their 2005 baseline;
* reducing petroleum consumption by 2 percent annually through fiscal
year 2015 relative to their 2005 baseline; and:
* acquiring plug-in hybrid electric vehicles when they are commercially
available at a reasonable cost.[Footnote 5]
Agencies are required to report annually on their progress in meeting
the fleet energy objectives. These reports are to be made available on
agencies' Web sites and are submitted to the Department of Energy
(DOE), which is required to provide a comprehensive compliance report
to Congress each year. Agencies also must respond to recommendations
from both DOE and the Office of Management and Budget (OMB) that are
designed to help agencies overcome barriers in meeting fleet
objectives. These recommendations are provided through transportation
management scorecards issued semiannually by DOE and OMB. Agencies also
have to continually provide information on their fleets through DOE's
Federal Analytical Statistical Tool (FAST) database, which is used,
among other things, to collect information on agencies' alternative
fuel vehicles, such as waiver requests to exempt vehicles when
alternative fuel is not readily available or is too expensive. Finally,
the Office of the Federal Environmental Executive (OFEE), located
within the Environmental Protection Agency, also has a role in ensuring
agencies' compliance with the fleet objectives. OFEE is responsible for
administering the executive order governing the federal fleet, while
DOE is primarily responsible for overseeing and administering the
requirements under the law.
In this context, you asked us to determine (1) the extent to which
agencies met the federal fleet energy objectives in fiscal year 2007
and (2) how agencies are poised to meet these objectives in the future.
On September 4, 2008, we briefed staff of the committee on the results
of our work. Enclosure I contains the briefing we used, with revisions
to incorporate technical comments we subsequently received from the
agencies involved. This correspondence summarizes the briefing,
including the recommendations made to both DOE and GSA to help federal
agencies meet fleet energy objectives. This correspondence also
contains a matter for congressional consideration aimed at bringing to
the attention of Congress possible inconsistencies between current
energy objectives established in law and the availability of
alternative fuel.
For the scope of this review, we included the 21 agencies and the
corresponding domestic fleet vehicles for which DOE reports to Congress
annually. To determine agencies' compliance with current federal fleet
energy objectives, we relied primarily on information from DOE's FAST
database. We also conducted interviews with relevant fleet officials,
including DOE officials and DOE's contractors that are responsible for
FAST. To determine how agencies are poised to meet the fleet energy
objectives in the future, we performed trend analyses using compliance
data from FAST, analyzed transportation scorecards, and analyzed fleet
data from FAST and the General Services Administration's (GSA) Special
Order Program. We determined that the data we used were reliable for
these purposes. More information on the scope and methods we used can
be found in enclosure I.
We conducted this performance audit from July 2007 through October 2008
in accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
Results in Brief:
Federal agencies had mixed results in meeting the energy objectives for
fleets in fiscal year 2007. First, all the agencies reported meeting or
exceeding the requirement to acquire AFVs. However, they received some
credit for AFVs not subject to the requirement, as allowed by DOE's
implementing guidance. For example, only vehicles acquired inside large
metropolitan areas are counted when establishing agencies' acquisition
targets, but AFVs acquired outside those areas count toward meeting the
targets. Second--regarding the requirement to use only alternative fuel
in AFVs--neither DOE nor the agencies reported on whether agencies were
in compliance with the requirement for 2007, even though they are
required by law to make such reports. However, data from 2006 indicate
that agencies primarily fueled their AFVs with gasoline--not
alternative fuel--and our analysis found no evidence that this changed
in 2007. Data reliability is a concern with respect to the third and
fourth objectives. While about half of the agencies reported increasing
their alternative fuel use by 10 percent and about two-thirds reported
reducing petroleum use by 2 percent in 2007, persistent data problems
call these results into question. Finally, no agency acquired plug-in
hybrid electric vehicles because they were not commercially available.
Table 1: Agency Performance in Meeting the Fleet Energy Objectives,
Fiscal Year 2007:
Source of objective: Energy Policy Act of 1992;
Agencies' fiscal year 2007 fleet energy objective: Requirement: Acquire
AFVs for 75 percent of new light-duty acquisitions by fleets of 20 or
more vehicles in metropolitan statistical areas of 250,000 or more;
Number of agencies meeting objective: 21;
Percentage of agencies meeting objective: 100.
Source of objective: Energy Policy Act of 2005;
Agencies' fiscal year 2007 fleet energy objective: Requirement: Must
use only alternative fuel in AFVs. (DOE may waive requirement if
operating on alternative fuel is not feasible, which DOE defines as
fuel being unavailable within 5 miles or 15 minutes or costs 15 percent
more than gasoline.);
Number of agencies meeting objective: 0[A];
Percentage of agencies meeting objective: 0[A].
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Increase
overall alternative fuel use by at least 10 percent annually, relative
to the 2005 baseline;
Number of agencies meeting objective: 11;
Percentage of agencies meeting objective: 52.
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Reduce
petroleum consumption by 2 percent annually through fiscal year 2015,
relative to the 2005 baseline;
Number of agencies meeting objective: 14;
Percentage of agencies meeting objective: 67.
Source of objective: Executive Order 13423;
Agencies' fiscal year 2007 fleet energy objective: Goal: Acquire plug-
in hybrid electric vehicles when they are commercially available at a
reasonable cost;
Number of agencies meeting objective: 0;
Percentage of agencies meeting objective: 0.
Source: GAO analysis of DOE data.
[A] We estimated compliance for this objective in the aggregate only;
not for each agency.
[End of table]
Over the next few years, agencies will likely face challenges in
meeting all but one of the fleet energy objectives. As they have over
the past 4 years, agencies will likely continue to acquire the mandated
percentage of AFVs. However, they will likely find it more difficult to
meet both the requirement to fuel AFVs only with alternative fuel and
the goal of increasing overall alternative fuel use by 10 percent
annually because of the limited availability of alternative fuel. It is
unclear whether agencies will be able to reduce petroleum consumption
annually by 2 percent in the near future, primarily because they will
not be able to rely on alternative fuel to displace significant amounts
of petroleum fuel. Furthermore, without better data, it will be
difficult to judge agencies' progress in increasing alternative fuel
use and reducing petroleum consumption. Some agencies have taken steps
to address these issues and improve data quality, but with limited
success. Finally, agencies will not be able to meet the goal of
acquiring plug-in hybrid electric vehicles until they become
commercially available, which is not expected for several years.
More detailed information on each area we reviewed follows in enclosure
I.
Conclusions:
Allowing agencies to count AFV acquisitions that are not subject to the
requirement toward meeting the requirement gives the incorrect
impression that agencies are greatly exceeding the requirement. More
importantly, agencies continue to acquire AFVs that they cannot expect
to fuel with alternative fuel because of location or cost. They are
fueling these vehicles mostly with petroleum, which does nothing to
further the government's energy objectives. Until alternative fuel,
particularly E85, is more widely available, agencies will likely
continue to expend time and resources on acquiring AFVs with limited
success in displacing petroleum, possibly missing opportunities to
displace petroleum through other means. In addition, agencies and DOE
have not met their clear responsibility to report on their compliance
with the Energy Policy Act of 2005's alternative fueling requirement.
Finally, in some cases, data quality problems have rendered agencies
unable to accurately measure their progress toward the energy
objectives.
Recommendations for Executive Action:
To accurately determine the progress agencies are making in meeting the
requirement to use only alternative fuel in their AFVs, we are
recommending that the Secretary of Energy report annually on agencies'
compliance with the alternative fueling requirement of the EPAct. To
provide information that more transparently captures agencies'
compliance with the AFV acquisition requirement, we are recommending
that the Secretary of Energy revise its implementation guidance to
disallow AFV credits for AFVs not subject to the acquisition
requirement. Because it is necessary to have accurate data for
determining agencies' progress in increasing alternative fuel use and
decreasing petroleum use, we also recommend that the Secretary of
Energy and the Administrator of the General Services Administration
continue their ongoing efforts to resolve data quality issues in these
areas.
Matter for Congressional Consideration:
To help agencies more efficiently use their resources to increase use
of alternative fuel and decrease use of petroleum, Congress should
consider aligning the federal fleet AFV acquisition and fueling
requirements with current alternative fuel availability and revising
those requirements as appropriate.
Agency Comments and Our Evaluation:
We provided a draft of this correspondence to DOE and GSA for their
review and comment. GSA agreed with our recommendations and provided
technical comments, which we incorporated as appropriate. DOE did not
provide written comments.
We are sending copies of this correspondence to interested
congressional committees, the Secretary of Energy, the Administrator of
GSA, the Office of Management and Budget, the Office of the Federal
Environmental Executive, and other interested parties. We also will
make copies available to others upon request. In addition, the
correspondence will be available at no charge on the GAO Web site at
[hyperlink, http://www.gao.gov]. If you or your offices have any
questions about this correspondence, please contact me at (202) 512-
3841 or gaffiganm@gao.gov. Contact points for our Offices of
Congressional Relations and Public Affairs may be found on the last
page of this correspondence. Key contributors are listed on the Scope
and Methodology page of enclosure I.
Signed by:
Mark Gaffigan:
Director, Natural Resources and Environment:
Enclosures:
Enclosure I: Federal Energy Management: Agencies Are Acquiring
Alternative Fuel Vehicles But Face Challenges In Meeting Other Fleet
Objectives:
Background:
Applicable Laws and Executive Order:
* EPAct 1992 (as amended):
* Energy Conservation;
Reauthorization Act 1998:
* EPAct 2005:
* Executive Order 13423 (January 2007):
Coverage:
* Twenty-one federal agencies with 20 or more domestic vehicles covered
by the fleet requirements of the laws and executive order.
* All light-duty vehicles located in a metropolitan statistical area
with population of 250,000 are subject to AFV acquisition
objective (about 56 percent of domestic federal fleet in 2007).
* Waivers for the alternative fueling objective may be granted
if operating the vehicle on alternative fuel is not feasible.
Fleet Subject to AFV Acquisition Objective, 2007:
* 336,254 vehicles (see fig. 1).
* Gasoline and E85 (a blend of about 85 percent ethanol and
15 percent gasoline) are the most common fuel types in the
fleet (see fig. 2).
* Ninety-nine percent of AFVs in the fleet are flex-fuel vehicles,
which can operate on E85, regular gasoline, or any combination.
Establishment of Federal Fleet Energy Objectives:
The Energy Policy Act (EPAct) of 1992 requires that 75 percent of all
light-duty vehicles acquired starting in fiscal year 1999 be
alternative fuel vehicles (AFV). The requirement covers fleets with 20
or more vehicles in the United States that are capable of being
centrally fueled and operated in a metropolitan statistical area with
more than 250,000 people. All light-duty vehicles that weigh 8,500
pounds or less are subject to this requirement. Certain law enforcement,
emergency, and military tactical vehicles are exempt. In 2007, there
were 336,254 vehicles that met this definition. Furthermore, in 1998,
the Energy Conservation Reauthorization Act amended the EPAct to allow
one AFV acquisition credit for each vehicle that operates solely on
alternative fuel and one credit for every 450 gallons of biodiesel fuel
used in vehicles over 8,500 pounds gross vehicle weight rating. These
additional credits may not fulfill more than half of an agency‘s AFV
requirement. The EPAct was again revised in 2005 to require that all
AFVs be fueled with alternative fuel. Agencies may seek waivers from
this requirement if operating the vehicles on alternative fuel is not
feasible. The Department of Energy‘s (DOE) guidance stated this to be
the case when alternative fuel is not available within 5 miles or 15
minutes of a vehicle‘s address or the cost exceeds that of conventional
fuel by more than 15 percent. In 2007, Executive Order (E.O.) 13423,
Strengthening Federal Environmental, Energy, and Transportation
Management, added three goals to existing requirements. Under the new
E.O., agencies are expected to (1) increase overall alternative fuel
use by at least 10 percent annually relative to a 2005 baseline, (2)
reduce petroleum use by 2 percent annually through fiscal year 2015,
relative to a 2005 baseline, and (3) purchase plug-in hybrid electric
vehicles when they are available at a reasonable cost.
Figure 1: Composition of Fleet Subject to AFV Acquisition Objective,
Fiscal Year 2007:
This figure is a pie graph showing the composition of fleet subject to
AFV acquisition objective, fiscal year 2007.
Conventional vehicles: 69%: 233,054;
AFVs: 31%: 103,200;
Total Fleet: 336,254.
[See PDF for image]
Source: GAO analysis of DOE fleet data.
[End of figure]
Figure 2: Composition of Fleet Subject to AVF Acquisition Objective, by
Fuel Type, Fiscal Year 2007:
This figure is a pie graph showing the composition of fleet subject to
AVF acquisition objective, by fuel type, fiscal year 2007.
Gasoline: 69%;
Ethanol (E-85): 28%;
Other: 2%;
Diesel: 1%.
[See PDF for image]
Source: GAO analysis of DOE fleet data.
[End of figure]
Federal Agencies Had Mixed Results in Meeting the Energy Objectives for
the Federal Fleet in 2007:
Fleet Performance FY 2007:
Fleet Energy Objective:
#1. Seventy-five percent of new light-duty vehicles must be AFV.
Most Agencies Met the AFV Acquisition Requirement but Received
Credit For AFVs That Were Not Subject to the Requirement:
All 21 agencies (100 percent) reported meeting the AFV acquisition
requirement in 2007.
Agencies acquired 59,832 total vehicles in 2007. Of these, 17,527
were light-duty vehicles subject to the AFV requirement and
42,305 were not. Thus, the target for 2007 was for agencies to
acquire at least 13,145 AFVs (75 percent of 17,527).
- Of the 17,527 vehicle acquisitions subject to the requirement,
agencies acquired 11,444 AFVs.
- Also, agencies will receive 3,878 additional credits toward
meeting the requirement for acquiring AFVs that operate
solely on alternative fuel, regardless of size, and for using biodiesel,
as established by law.
- Furthermore, DOE‘s implementation guidance under the
previous E.O. allowed agencies to count, or ’credit,“ toward
the target of 13,145 all the AFVs within the 59,832 vehicles
they acquired”not just those within the 17,527 acquisitions
that were subject to the fleet requirement. DOE‘s
implementation of the new E.O. is ambiguous regarding these
credits. If these credits are counted in 2007, agencies will
receive credit for an additional 14,579 AFVs among the 42,305
acquisitions that were not subject to the fleet requirement”
mostly for AFVs outside metropolitan areas”for a total of
26,023 AFV acquisitions.
- Combined, AFV acquisitions (26,023) and additional credits
(3,878) would result in total AFV credits of 29,901. This
amounts to 171 percent of the light-duty vehicle acquisitions
covered by the EPAct 1992, well above the 75 percent
requirement (see fig. 3).
Figure 3: ACV Acquisitions and Credits Earned, Fiscal Year 2007:
This figure is a combination shaded bar graph showing ACV acquisitions
and credits earned, fiscal year 2007. The X axis represents the ACV
acquisitions, and the Y axis represents the fiscal year.
Fiscal year: 2007;
AFV acquisitions target: 13,145;
Not subject to acquisitions requirement: 14,579;
Credits: 3,878;
Subject to acquisitions requirement: 11,444.
Source: GAO analysis of DOE fleet data.
[End of figure]
Fleet Performance FY 2007:
Fleet Energy Objective:
#2. AFVs must be fueled with alternative fuel 100 percent of the time,
unless they qualify for a waiver.
DOE and Agencies Did Not Report on Agencies‘ Compliance with
Alternative-Fuel-Only Fueling Requirement for 2007; However, Our
Analysis Indicates That Agencies Did Not Meet the Requirement:
Section 701 of EPAct 2005 directs DOE to monitor and report to
Congress annually on agencies‘ compliance in fueling AFVs with
alternative fuel 100 percent of the time, unless they qualify for a
waiver because the fuel is not readily available or is too expensive.
- DOE did not compile or report compliance data relative to Section 701
in 2007 through its tracking and reporting system. However, for 2006,
DOE reported on agencies‘ compliance with the executive order that
preceded E.O. 13423, which set a goal for agencies to fuel AFVs with
alternative fuel a majority of the time. In 2006, DOE reported that
none of the agencies met this goal, and collectively agencies fueled
their AFVs with alternative fuel only about 7 percent of the time.
Although DOE did not have data on alternative fuel use in AFVs for
2007, according to our analysis, results for 2007 would be similar to
those for 2006.
- DOE did not require waivers for 2007 operations.
* Since 2006, agencies have been required to include information on
their compliance with the EPAct 2005, as amended, including the
requirement to fuel AFVs exclusively with alternative fuel, in their
annual reports on their Web sites and in the Federal Register.
- Our review of agencies‘ Web sites and the Federal Register in
June 2008 found that many agencies‘ sites did not include updated
annual reports, and several agencies had no annual reports at all. None
of the 21 agencies reported on compliance with the EPAct requirement to
fuel AFVs 100 percent of the time with alternative fuel in 2007.
Fleet Performance FY 2007:
Fleet Energy Objective:
#3. Increase overall alternative fuel use by 10 percent annually,
relative to 2005 baseline.
Over Half of the Agencies Reported Meeting the Goal of Increasing
Their Use of Alternative Fuel by 10 Percent, but Data Are Unreliable:
* Eleven of the 21 agencies (52 percent) reported meeting the goal.
Collectively, agencies exceeded the alternative fuel target by over
461,000 gallons (about 7 percent). (See fig. 4)
* According to DOE and other agency officials, data on alternative fuel
use may be inaccurate due to problems associated with the tracking
of alternative fuel. Most notably, fueling stations do not have
standardized product codes for alternative fuel. Because most
agencies rely on credit card records in reporting on the types and
amounts of fuel they consume, determining the exact amount of
alternative fuel, as well as petroleum fuel, used in their fleets can
be a significant challenge.
- DOE‘s annual 2006 report to Congress and the Office of the Federal
Environmental Executive‘s 2007 report to the President both noted
inconsistencies in fuel consumption data provided by the agencies.
- Agency annual reports also cite continuous problems with tracking
purchases of alternative fuel. Two agency officials told us they were
unable to track and accurately report on alternative fuel use in their
fleets. One fleet manager informed us that the amount of alternative
fuel being used at one location was underreported by as much as 40
percent.
- The Office of Management and Budget (OMB) has cited inconsistent
reporting in the annual transportation management scorecards it uses to
assess agency compliance with fleet objectives. For example, in its 2007
scorecard for General Services Administration‘s (GSA) internal fleet,
OMB commented on the inconsistency in the amounts of alternative fuel
use reported by the agency in 2005 and 2006 (about 50,000 gallons in
each year) relative to the amount reported in 2007 (about 2,200
gallons).
Figure 4: Alternative Fuel Consumed by the Federal Fleet, Fiscal Year
2007:
This figure is a bar graph showing alternative fuel consumed by federal
fleet, fiscal year 2004. The values represent gasoline gallon
equivalents.
Fiscal Year: 2007;
Baseline 2006: 5,967,991;
Target: 6,564,787;
2007 performance: 7,025,521.
[See PDF for image]
Source: GAO analysis of DOE fleet data.
[End of figure]
Fleet Performance FY 2007:
Fleet Energy Objective:
#4. Reduce petroleum consumption by 2 percent annually, relative to
2005 baseline.
Two-Thirds of the Agencies Reported Meeting the Petroleum Reduction
Goal, but the Data Are Unreliable:
* Fourteen of the 21 agencies (67 percent) reported meeting the goal.
Collectively, however, agencies fell short of the petroleum reduction
target by about 167,000 gallons (see fig. 5).
* The previous petroleum use goal was a 20 percent reduction by the
end of fiscal year 2005 (about 3 percent annually) using 1999 as a
baseline. No agency was able to meet that reduction goal. In 2007,
according to DOE, the administration changed the goal to make it
more achievable. Even under this relaxed target in 2007, one-third of
the agencies and the federal government as a whole fell short of the
goal.
* Data on petroleum consumption are unreliable, in part due to
agencies‘ inability to accurately track alternative fuel use through
credit card records:
- DOE‘s annual reports to Congress frequently cited concerns about the
quality of petroleum consumption data provided by agencies.
- OMB, through its transportation scorecards, also has noted
inconsistencies in agencies‘ data. For example, OMB commented on
inaccuracies and inconsistencies found in fuel consumption and other
data provided by the Department of Defense (DOD), GSA,[Footnote 6] and
the National Aeronautics and Space Administration (NASA).
Figure 5: Petroleum Fuel Consumption by the Federal Fleet in Fiscal
Year 2007, Compared to the Fiscal Year 2007 Target for Reduction:
This figure is a bar graph showing petroleum fuel consumption by the
federal fleet in fiscal year 2007, compared to the fiscal year 2007
target for reduction.
Gasoline Gallon Equivalents (in millions):
Fiscal Year: 2007;
Baseline 2005: 285;
2007 target: 273.7;
2007 actual: 273.8 (167,000 gallons over).
[See PDF for image]
Source: GAO analysis of DOE fleet data.
[End of figure]
Fleet Performance FY 2007:
Fleet Energy Objective:
#5. Acquire plug-in hybrid electric vehicles when commercially
available and at a reasonable cost.
Because of the Lack of Availability, No Agency Met the Goal to
Acquire Plug-In Hybrid Electric Vehicles:
* Agencies were not able to acquire plug-in hybrid electric vehicles
because they were not commercially available.
Agencies Will Likely Face Challenges in Meeting All but One of the
Fleet Objectives:
Projected Performance:
Fleet Energy Objective:
#1. Seventy-five percent of new light-duty vehicles must be AFVs.
Agencies Will Likely Continue to Meet AFV Acquisition Requirement
in the Future:
* In general, agencies have consistently exceeded the requirement
for the past 3 years.
* About half of the agencies project that they will exceed their AFV
acquisition targets in 2008.
* AFVs are readily available and are comparably priced to
conventional vehicles.
* According to DOE officials, agencies can count AFVs not subject
to the requirement toward their AFV acquisition target. They also
can receive additional credit for biodiesel use and for AFVs that
operate only on alternative fuel. As a result, agencies have easily
exceeded AFV acquisition targets for the past several years (see
fig. 6), even acquiring more AFVs in 2007 in areas not subject to
the acquisition requirement than in those that were subject to it.
Figure 6: Agency Performance in Meeting AFV Acquisition Requirement,
Fiscal Years 2005-2007 (in percentage):
This figure is a combination bar graph showing agency performance in
meeting AFV acquisition requirement, fiscal years 2005-2007. The X axis
represents the fiscal year, and the Y axis represents AFVs as a
percentage of light-duty acquisitions subject to EPAct.
Fiscal year: 2005;
Vehicles not subject to acquisition requirements: 37;
Credits (Biodiesel and dedicated vehicles): 18;
Vehicles subject to acquisition requirements: 54;
Requirement: 75.
Fiscal year: 2006;
Vehicles not subject to acquisition requirements: 37;
Credits (Biodiesel and dedicated vehicles): 19;
Vehicles subject to acquisition requirements: 63;
Requirement: 75.
Fiscal year: 2007;
Vehicles not subject to acquisition requirements: 83;
Credits (Biodiesel and dedicated vehicles): 22;
Vehicles subject to acquisition requirements: 65;
Requirement: 75.
[See PDF for image]
Source: GAO analysis of DOE fleet data.
[End of figure]
Projected Performance:
Fleet Energy Objective:
#2. AFVs must be fueled with alternative fuel 100 percent of the time,
unless they qualify for a waiver.
Insufficient Alternative Fuel Infrastructure Will Likely Hinder
Agencies‘ Ability to Fuel AFVs Exclusively with Alternative Fuel:
Past performance strongly suggests that agencies will not achieve the
requirement in the next few years.
* In the past 3 years, only two agencies met the alternative fueling
requirement under the previous E.O., which called for agencies to
fuel AFVs the majority of the time with alternative fuel. Collectively,
agencies reported using alternative fuel in AFVs about 9 percent of the
time in 2005 and 7 percent of the time in 2006. We estimate that
agencies‘ alternative fuel use was about 8 percent in 2007.
* For 2008 operations, DOE assessed waiver requests submitted by
the agencies. Eighteen of the 21 agencies requested waivers,
primarily because the vehicles were not close enough to alternative
fuel. DOE received waiver requests for 76,565 vehicles and approved
74,623 (97 percent), covering 61 percent of AFVs in the federal fleet.
Figure 7: Alternative Fuel Use in AFVs in Fiscal Years 2005, 2006, and
2007:
This figure is a bar graph showing alternative fuel use in AFVs in
fiscal years 2005, 2006, and 2007. The X axis represents the fiscal
year, and the Y axis represents the percentage of alternative fuel used
in AFVs.
Fiscal year 2005: 9.0;
Fiscal year 2006: 6.7;
Fiscal year 2007: 8.2.
Source: GAO analysis of DOE fleet data.
[A] GAO estimated alternative fuel use in 2007.
[End of figure]
Figure 8: Location of Government- and Private-Owned Fueling Stations
Offering E85 as of June 2008:
This figure is a map of the United States with points highlighting
location of government- and private-owned fueling stations offering E85
as of June 2008.
[See PDF for image]
Source: Congressional Research Service and DOE's Alternative Fuels Data
Center data.
[End of figure]
The agencies we reviewed have taken steps to increase their alternative
fuel use:
* Developed alternative fuel strategic action plans. These incorporate
partnering with other agencies and advocacy organizations in an effort
to promote greater development of alternative infrastructure. For
example, the GSA has partnered with DOE, the National Ethanol Vehicle
Coalition, and other stakeholders to help industry identify potentially
new alternative fueling locations.
* Emphasized better communications. For example, some agencies have
made fleet training materials readily available to staff on their
intranets and participate in periodic conference calls with national
fleet transportation coordinators. Agencies also have shared their
success stories through public and agency forums, such as work group
meetings for federal agencies and annual federal fleet conferences.
* Provided more accurate information. Agencies provided information on
the location of their AFVs to DOE‘s National Renewable Energy
Laboratory (NREL), which uses this information to assist drivers in
locating alternative fueling stations.
* Increased the number of federal fueling stations offering E85.
For example, DOD has installed eight alternative fueling stations
at various installations across the country. The Army is working
with the Army Air Force Fuel Exchange Service to develop a
business case for installing additional alternative fueling
infrastructure. NASA has increased its E85 fueling capacity by
adding an additional 10,000 gallon tank at Kennedy Space Center
in Florida. An existing 1,000 gallon E85 tank at the Johnson
Space Center in Texas will be relocated to make room for a
10,000 gallon E85 tank, and NASA‘s White Sands Test Facility in
New Mexico has activated a 2,500 gallon E85 tank.
Projected Performance:
Fleet Energy Objective:
#3. Increase overall alternative fuel use by 10 percent annually,
relative to the 2005 baseline.
Insufficient Infrastructure Will Also Likely Hinder Agencies from
Increasing Their Use of Alternative Fuel by 10 Percent Annually:
As with the previous requirement, agencies‘ ability to meet this goal
will be significantly hampered by the limited availability of
alternative fuel.
* Limited fueling stations and low production levels of E85 will
limit the amount of alternative fuel available to agencies.
* Concerns over data reliability will likely continue to make it
difficult to accurately assess agencies‘ compliance.
Agencies have taken steps to improve data quality.
* Improved the tracking of alternative fuel. For example, GSA has
improved its Fleet Drive Thru, a Web-based data collection and
reporting system for vehicles leased through GSA. Among other
things, the system allows agencies to retrieve fueling data for
AFVs directly, allowing for inaccuracies to be more readily
identified.
* Increased external efforts to improve data quality. For
example, GSA, DOE, and the National Ethanol Vehicle Coalition
have partnered to urge the fuel industry to standardize fuel
product codes and to assist credit card providers in resolving
errors in their reports on alternative fuel purchases.
Projected Performance:
Fleet Energy Objective:
#4. Reduce petroleum consumption by 2 percent annually, relative to
2005 baseline.
Agencies‘ Prospects for Significantly Reducing Petroleum Use in
the Future Are Uncertain:
Agencies face difficulties in continuing to meet the petroleum
reduction goal.
* About 99 percent of the ethanol produced in the United States is
used in blends of 10 percent or less, limiting the government‘s
ability to significantly displace petroleum.
* AFVs can be more costly to buy and operate than standard vehicles.
The U.S. Postal Service, which owns the largest number of E85 vehicles
of any agency”about 37,000 in 2007”found that these vehicles are more
costly to buy and operate than non-AFVs because of the higher fuel cost
of E85 and lower fuel efficiency of AFVs. The Postal Service reported
that their AFVs reduced fuel efficiency by about 29 percent, thereby
increasing fuel consumption by about 1.5 million gallons in 2007.
* A limited number of fuel-efficient AFVs are available to agencies.
We found that from 2006 through 2008, GSA offered through its
Special Order Program, the means by which most agencies acquire
vehicles, only one AFV compact sedan”a 6-cylinder model”and no
subcompact AFV sedans. According to GSA officials, the program includes
the most fuel-efficient AFVs available commercially”automobile
manufacturers currently offer few fuel-efficient AFVs. GSA officials
pointed out that agencies may acquire vehicles outside of the program,
but agencies will typically pay significantly more for these vehicles.
Rather than relying on E85, some agencies have turned to other
methods to reduce petroleum use.
* Increased their use of conventional hybrids. The Postal Service
and other agencies are using conventional hybrids in an effort to
reduce petroleum consumption. Postal Service officials believe
that hybrids are better suited for stop-and-go driving by service
carriers and can improve fuel efficiency by as much as 21 percent.
EPAct 1992 was amended in 2008 to include conventional hybrids in the
definition of AFVs; however, the additional cost of hybrids, $8,000 to
$10,000 per vehicle, also may limit agencies‘ use of them.
* Employed better fleet management practices. Several agencies have
reduced the number of vehicles in their fleets, encouraged carpooling,
and instructed drivers to take actions aimed at increasing fuel
efficiency, such as observing posted speed limits and performing
scheduled maintenance.
* Leveraged resources to acquire other types of AFVs. NASA partnered
with the Marine Corps to urge GSA to acquire about 40 compressed
natural gas vehicles through a special purchase arrangement between GSA
and Honda.
* Studied ways to reduce petroleum consumption. NASA has begun testing
electric vehicles, the Postal Service is continuing its test of
conventional hybrids, and GSA is trying to identify vehicles it could
replace with more fuel-efficient models.
Projected Performance:
Fleet Energy Objective:
#5. Acquire plug-in hybrid electric vehicles when commercially
available and at a reasonable cost.
Plug-In Hybrid Electric Vehicles Are Unlikely to Be Widely Available
Before 2010 at the Earliest:
* Battery weight, durability, and cost are the biggest obstacles to
commercializing plug-in hybrid electric vehicles. Limited
production by Toyota and General Motors might begin in 2010.
* In July 2008, GAO initiated a review regarding issues associated
with using plug-in hybrid electric vehicles in the federal
government.
Figure 9: Components of a Plug-in Hybrid Electric Vehicle:
This figure is an illustration of a plug-in hybrid electric vehicle
with the following parts highlighted: power electronics, battery
recharge plug (not to scale), fuel tank, electric battery pack, and
electric motor.
[See PDF for image]
Source: National Renewable Energy Laboratory for Department of Energy.
[End of figure]
Conclusions and Recommendations:
Federal Fleets:
Conclusions:
Since 1992, Congress and the President have sought to reduce federal
dependence on petroleum, using alternative fuel as one of their main
tools. Virtually every agency has succeeded in acquiring more AFVs,
but none has been able to significantly displace petroleum with
alternative fuel, due to its lack of availability. Furthermore, allowing
agencies to count AFV acquisitions that are not subject to the
requirement toward meeting the requirement gives the incorrect
impression that agencies are greatly exceeding the requirement.
More importantly, agencies continue to acquire AFVs that they cannot
expect to fuel with alternative fuel because of location or cost.
Instead, they are fueling these vehicles mostly with gasoline, which
does nothing to further the government‘s energy objectives. In some
cases, it has increased total fuel consumption, making operation of
the vehicles more costly than if the agency had purchased standard
vehicles. Until alternative fuel, particularly E85, is more widely
available, agencies will likely continue to expend time and resources
on acquiring AFVs with limited success in displacing petroleum. In
places where agencies do not have a reasonable prospect of achieving
the fueling requirement, they may miss opportunities to displace
petroleum consumption through other means. Petroleum reduction is
one of the central rationales behind all five energy objectives.
However, the acquisition and fueling requirements may, in some
cases, undermine efforts to cut petroleum use. In addition, agencies
and DOE have not met their clear responsibility to report on their
compliance with the EPAct‘s 2005 alternative fueling requirement.
Furthermore, in some cases, data quality problems have rendered
agencies unable to accurately measure their progress toward
increasing alternative fuel or reducing petroleum consumption, or to
effectively target areas for improvement.
Recommendations for Executive Action:
We recommend that the Secretary of Energy (1) report annually on
agencies‘ compliance with the alternative fueling requirement under
Section 701 of EPAct 2005, and (2) revise DOE‘s implementation
guidance to disallow AFV credits for AFVs not subject to the
acquisition requirement.
We recommend that the Secretary of Energy and the Administrator of
the General Services Administration continue their ongoing efforts to
resolve data quality issues in these areas.
Matters for Congressional Consideration:
Congress should consider aligning the federal fleet AFV acquisition
and fueling requirements with current alternative fuel availability and
revising those requirements as appropriate.
Scope and Methodology:
To determine agencies‘ compliance with 2007 federal fleet energy
objectives, we relied primarily on information from DOE‘s Federal
Automotive Statistical Tool (FAST) database. In addition, we reviewed
annual DOE reports and agency annual reports on compliance with EPAct
1992 and 2005 and executive orders. We also conducted interviews with
relevant fleet officials, including DOE officials and DOE contractor
staff from the Idaho National Laboratory that work with FAST.
To determine whether agencies are poised to meet fleet energy goals in
the future, we performed trend analyses using compliance data from
FAST, analyzed transportation scorecards issued to agencies by OMB and
DOE, and analyzed vehicle data from the GSA Special Order Program. We
determined these data to be sufficiently reliable for our purposes,
which were to determine agencies‘ compliance in 2007 and prospects for
compliance in the future.
We conducted this performance audit from July 2007 through October 2008
in accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
Related Products:
GAO, Bio-fuels: DOE Lacks a Strategic Approach to Coordinate Increasing
Production with Infrastructure Development and Needs, GAO-07-713
(Washington, D.C.: June 8, 2007).
GAO, U.S. Postal Service: Vulnerability to Fluctuating Fuel Prices
Requires Improved Tracking and Monitoring of Consumption Information,
GAO-07-244 (Washington, D.C.: Feb.16, 2007).
GAO, Department of Energy: Key Challenges Remain for Developing and
Deploying Advanced Energy Technologies to Meet Future Needs, GAO-07-106
(Washington, D.C.: Dec. 20, 2006).
DOE, Clean Cities Alternative Fuel Price Report”June 2006 (Washington,
D.C. June 2006).
Scope Methodology, and Related Products:
GAO contacts:
Mark Gaffigan, 202-512-3841 or gaffiganm@gao.gov.
Staff Acknowledgments:
In addition to the contact named above, individuals making key
contributions to this briefing include: Karla Springer, John
Johnson, Michael Kendix, Ben Shouse, Barbara Timmerman, and Robert
Alarapon.
[End of section]
Enclosure II: Comments from the General Services Administration:
GSA:
GSA Administrator:
September 26, 2008:
The Honorable Gene L. Dodaro:
Acting Comptroller General:
U.S. Government Accountability Office:
Washington, DC 20548:
Dear Mr. Dodaro:
The U.S. General Services Administration (GSA) thanks you for the
opportunity to review and comment on the draft report, "Federal Energy
Management: Agencies Are Acquiring Alternative Fuel Vehicles but Face
Challenges in Meeting Other Fleet Objectives" (GAO-08-1112R). We concur
with the joint recommendation to the Department of Energy (DOE) and
GSA, and we will continue our ongoing work with DOE to resolve data
quality issues.
If you have any questions, please contact me. Staff inquiries may be
directed to Mr. Kevin Messner, Associate Administrator, Office of
Congressional and Intergovernmental Affairs, at (202) 501-0563.
Sincerely,
Signed by:
James A. Williams:
Acting Administrator:
cc: Mark Gaffigan, Director, Natural Resources and Environment, GAO:
[End of section]
Footnotes:
[1] The Energy Policy Act of 1992, as amended, and Executive Order
13423 establish the federal agencies that are subject to fleet energy
requirements and goals. These agencies must have 20 or more domestic
vehicles, and include: Court Services and Offender Supervision Agency
for the District of Columbia; General Services Administration; National
Aeronautics and Space Administration; Smithsonian Institute; Social
Security Administration; Departments of Agriculture, Commerce, Defense,
Energy, Health and Human Services, Homeland Security, Housing and Urban
Development, Interior, Justice, Labor, State, Transportation, Treasury,
and Veterans Affairs; Environmental Protection Agency; and U.S. Postal
Service.
[2] Under the Energy Policy Act of 1992, as amended, AFVs include any
dedicated, flexible-fuel, or dual-fuel vehicle designed to operate on
at least one alternative fuel. In 2008, EPAct was amended to include
conventional hybrids.
[3] The alternative fuel acquisition requirement applies only to light-
duty vehicles capable of being centrally fueled and operated in
metropolitan statistical areas of more than 250,000 people.
[4] Alternative fuels under DOE regulations include: methanol, ethanol,
and other alcohols; blends of 85 percent or more of alcohol with
gasoline; natural gas and liquid fuels domestically produced from
natural gas; liquefied petroleum gas (propane); coal-derived liquid
fuels; hydrogen; electricity; biodiesel; and p-series fuels. 10 C.F.R.
§ 490.2.
[5] The Energy Independence and Security Act, Pub. L. No. 110-140
(2007), added petroleum reduction and alternative fuel requirements.
Specifically, the Act requires that not later than 2015 and each year
thereafter, agencies achieve a 20 percent reduction in annual petroleum
consumption and a 10 percent increase in alternative fuel consumption
relative to a 2005 baseline; also, that agencies begin by 2010 to
reduce petroleum consumption and increase alternative fuel consumption
at a rate that will enable them to meet these requirements. We did not
include the new law in the scope of our study because the law was
passed in fiscal year 2008, which is beyond the time frame covered by
this report (agency performance for 2007).
[6] We refer to GSA‘s internal fleet of about 1,200 vehicles.
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