The Energy Policy Act of 1992 (EPAct) requires fleets 

operated by state governments and alternative fuel providers to acquire a certain percentage of alternative fuel 

vehicles (AFVs) each year. The requirements of sections 

501 and 507(o) promote the use of nonpetroleum fuels

to reduce U.S. dependence on foreign oil. The regulations 

focus on building an inventory of AFVs in large lightduty vehicle (LDV) fleets in large metropolitan areas.

After EPAct was enacted, the U.S. Department of 

Energy (DOE) began a formal rulemaking process with 

public input to establish the regulations. The resulting 

State & Alternative Fuel Provider (S&FP) Rule requires 

state and alternative fuel provider fleets to include a 

percentage of AFVs in their acquisitions of new LDVs, 

starting with model year (MY) 1997 vehicles.

As of MY 2005, state and alternative fuel provider 

fleets have collectively purchased more than 90,000 

AFVs. These vehicles have formed a critical mass of fuel 

demand, allowing fleets and private businesses to justify 

the development of fueling infrastructure. In response to 

this market, automobile manufacturers are producing more 

than 20 AFV models, which fleets and individuals outside 

of EPAct are purchasing.

Who Is Covered?

EPAct requirements for the S&FP Rule apply to fleets 

operated by state government agencies and businesses 

whose principal activity is based on the production or sale 

of EPAct-authorized alternative fuels. Compliance is 

required by fleets that operate, lease, or control 50 or more 

LDVs within the United States. Of those 50 vehicles, at 

least 20 must be used primarily within a single Metropolitan Statistical Area/Consolidated Metropolitan Statistical 

Area (MSA/CMSA). Those same 20 vehicles must also be 

capable of being centrally fueled.

For a list of MSA/CMSAs, visit www.eere.energy.gov/

vehiclesandfuels/epact/state/progs/dyn_msa.cgi.

Acquisition Requirements

When DOE initiated the S&FP Rule, a phase-in schedule 

was established to allow fleets to gradually comply. As of 

MY 2001, the acquisition requirements were fully phased 

in. The percentage of new LDVs that must now be AFVs is 

75% for state fleets and 90% for alternative fuel providers.

If a state or alternative fuel provider fleet became eligible 

for EPAct following 1997, it must comply with the acquisition requirements for the year in which it became covered. 

It is important for fleets to notify DOE of their covered 

status immediately. DOE will work with fleets in these 

situations to help them understand the EPAct requirements.

In some cases, DOE may grant an exemption from the 

AFV acquisition requirements if fuels or vehicles are not 

available. For more information on exemptions, see the 

guidance document at www.eere.energy.gov/

vehiclesandfuels/epact/pdfs/exemption_guide.pdf and its

addendum at www.eere.energy.gov/vehiclesandfuels/epact/

pdfs/exemption_addendum2.pdf.

S&FP Rule Promotes Alternative Fuels to Cut Need for Foreign Oil

Locations of Covered EPAct Fleets*

*MSA/CMSAs were determined by 1980 census data.

EPAct

Fleet Information & Regulations

State & Alternative Fuel Provider Rule Fact Sheet
Fuel Use Requirements

Under EPAct, covered alternative fuel providers should 

always use alternative fuels in their AFVs. The only 

exception is when they are operating in an area where the 

alternative fuel is not available. Therefore, it is extremely 

important for fleets to understand which alternative fuels 

are available in their operating areas. For a list of alternative fueling sites throughout the United States, visit the 

Alternative Fuels Data Center’s Alternative Fuel Station 

Locator at www.eere.energy.gov/afdc/infrastructure/

locator.html.

Credits

Fleets must report their AFV acquisitions to DOE each 

year. Every alternative fuel LDV purchased earns covered 

fleets one credit that counts toward one AFV requirement. 

Each credit a fleet reports is automatically applied to its 

requirements for the year. Once the fleet’s light-duty AFV 

purchase requirements are fulfilled, credits may be earned 

for medium- or heavy-duty AFV acquisitions. If a fleet 

earns more credits than are required in one year, the credits 

can be banked for future use or sold to other covered fleets 

participating in the S&FP Rule.

For a list of fleets that are looking to buy or sell credits, 

visit the Credit Trades Bulletin Board on the EPAct website 

at www.eere.energy.gov/vehiclesandfuels/epact/state/progs/

vwb/vwb.cgi, or check the list of Fleets with Excess Credits 

at www.eere.energy.gov/vehiclesandfuels/epact/state/progs/

public_rpt.cgi. 

Biodiesel

Fleets that use fuel blends containing at least 20% 

biodiesel (B20) in medium- and heavy-duty vehicles earn 

one credit for every 450 gallons of pure biodiesel (B100) 

that is used. Covered fleets, other than biodiesel providers, 

can satisfy as much as 50% of their annual requirements 

by using biodiesel. Biodiesel credits must be used in the 

year they are earned and cannot be banked or sold.

To learn more about using biodiesel to comply with 

EPAct, visit www.eere.energy.gov/vehiclesandfuels/epact/

pdfs/biodiesel_guidance.pdf. 

Reporting to DOE

Covered S&FP fleets are required to report their acquisition activity to DOE no later than December 31 for the 

model year for which they are reporting. Fleets enter their 

acquisition activity into the online reporting database on 

the EPAct website. Acquisition activity includes LDVs 

and AFVs acquired during the model year and biodiesel 

purchased for use.

What Is EPAct?

The Energy Policy Act of 1992 (EPAct) was passed by Congress 

to reduce the nation’s dependence on imported petroleum. 

Provisions of EPAct require certain fleets to purchase AFVs. 

DOE administers these requirements through its State & Fuel 

Provider Rule, Federal Fleet Rule, and Alternative Fuel Designation Authority.

For more information, visit www.eere.energy.gov/

vehiclesandfuels/epact, or call the Regulatory Information Line 

at 202-586-9171. 

EPAct Website

www.eere.energy.gov/vehiclesandfuels/epact/index.shtml 

Regulatory Information Line

202-586-9171

regulatory_info@afdc.nrel.gov

State & Alternative Fuel Provider Rule Fact Sheet

Prepared by the National Renewable Energy Laboratory (NREL)

NREL is a U.S. Department of Energy National Laboratory

Operated by Midwest Research Institute • Battelle

Neither the United States government nor any agency thereof, nor any of their employees, 

makes any warranty, express or implied, or assumes any legal liability or responsibility for the 

accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to 

any specific commercial product, process, or service by trade name, trademark, manufacturer, 

or otherwise does not necessarily constitute or imply its endorsement, recommendation, or 

favoring by the United States government or any agency thereof. The views and opinions of 

authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.

Printed with a renewable-source ink on paper containing at least 50% wastepaper, including 

20% postconsumer waste

Sponsored by the U.S. Department of Energy

Energy Efficiency and Renewable Energy 

FreedomCAR and Vehicle Technologies Program

For more information contact: EERE Information Center

1-877-EERE-INF (1-877-337-3463)

www.eere.energy.gov

A Strong Energy Portfolio for a Strong America

Energy efficiency and clean, renewable energy will mean a stronger economy, 

a cleaner environment, and greater energy independence for America. Working 

with a wide array of state, community, industry, and university partners, the U.S. 

Department of Energy’s Office of Energy Efficiency and Renewable Energy invests 

in a diverse portfolio of energy technologies.

DOE/GO-102005-2010 • April 2005

For more information about EPAct, visit www.eere.energy.gov/vehiclesandfuels/epact.