ALTERNATIVE

FUELED

VEHICLES

for

for meeting the requirements of the

Alternative Fuel Transportation Program [10 CFR Part 490]

ENERGY POLICY ACT OF 1992 (EPACT)
DISCLAIMER

This publication is intended as a guide for familiarizing interested parties with the requirements of the Department of Energy’s

Alternative Fuel Transportation Program, 10 CFR Part 490, adopted pursuant to sections 501, 507(o), 508, 511, 512 and 513 of the

Energy Policy Act of 1992. It is not intended as a complete representation of the regulation nor the complete information necessary for

compliance with the regulation. In the event of any discrepancy, real or perceived between the language of this publication and that of

the regulation, the language of the regulation should be considered as governing.
Page 1 (Guide to 10 CFR Part 490)

CONTENTS

EXECUTIVE SUMMARY - 2

STATE GOVERNMENT FLEETS - 3

Coverage and General Requirements - 4

State Government Fleet “Decision Tree” - 6

Exemptions from Acquisition Requirements - 9 

General Reporting Requirements for States - 10

ALTERNATIVE STATE PLAN - 12

ALTERNATIVE FUEL PROVIDERS - 15

Coverage and General Requirements - 16

Fuel Provider "Decision Tree " - 19

Electric Vehicle Option for Electric Utilities - 23

Exemptions From Acquisition Requirements - 23

General Reporting Requirements for Fuel Providers - 24 

ALTERNATIVE FUELED VEHICLE CREDIT PROGRAM - 26 

INTERPRETIVE RULINGS AND ENFORCEMENT - 29

Requests for Interpretive Ruling - 30

Enforcement - 30

APPENDIX - 31 

Addresses Related to Compliance - 32 

Additional Sources of Information About the Alternative Fuel Transportation Program - 33

Metropolitan Statistical Areas / Consolidated Metropolitan Statistical Areas with 

1980 Populations of 250,000 or more - 34 

Definitions - 37

A Glossary of Acronyms - 42

INDEX - 43
Page 2 (Guide to 10 CFR Part 490)

EXECUTIVE SUMMARY

Our increasing dependence on imported oil prompted Congress to pass the

Energy Policy Act (EPACT) of 1992. The Act gave the U.S. Department of

Energy (DOE) the means to expand research and development in the

transportation sector, and to create programs for accelerating the introduction of

Alternative Fueled Vehicles (AFVs).

The Department of Energy's (DOE) Alternative Fuel Transportation Program

(10 CFR Part 490) implements provisions in Sections 501, 507(o), and 508 of

EPACT. These sections - 

• Call for rulemakings requiring alternative fuel providers and State government

fleets to gradually acquire AFVs in certain increasing percentages, 

• Set forth a credit program to reward those who purchase or lease AFVs either

earlier than required, or in greater numbers than required,

• Establish reporting procedures,

• Implement exemption provisions, and

• Set forth enforcement procedures and provisions. 

This booklet, published by the Department of Energy, provides reader-friendly 

guidance to States and fuel providers on the main requirements of the Alternative

Fuel Transportation Program.* It is designed to help you to plot a step-by-step

course through your compliance process. Most of your basic questions will be

answered on the following pages. Questions that are not answered here may be

directed through the mail, Internet addresses, and/or phone numbers listed in the

Appendix.

* Should questions arise between the language of this publication and that of the regulation, the

language of the regulation governs (10 CFR Part 490). 
Page 3 (Guide to 10 CFR Part 490)
Page 4 (Guide to 10 CFR Part 490)

COVERAGE AND GENERAL

REQUIREMENTS FOR STATES

1. How does a State government or State

agency determine if it is covered?

The State government (or State agency) is

covered if it owns, operates, leases or

otherwise controls -

• 50 or more LIGHT DUTY

VEHICLES (LDVs)* within

the United States which are

NOT on the list of

EXCLUDED vehicles (see #6

for list of excluded vehicles),

AND

• 20 of those LDVs are used primarily

within any MSA or CMSA

(Consolidated / Metropolitan

Statistical Area--see Appendix for

list),

AND

• Those same 20 LDVs are centrally

fueled, or capable of being centrally

fueled. (See #7 for guidelines on

centrally fueled vehicles).

*(Please see the Appendix for definition

of “Light Duty” Vehicles.)

2. Must a covered State government

comply with program (alternative fueled

vehicle) acquisition* requirements as a

whole State, or may it choose to comply

as individual agencies?

DOE prefers that compliance be carried out

by each State as a whole, but understands

each State is unique, so is allowing each

State to choose the way in which it will

calculate its acquisition requirements. A

covered State may choose to -

• Count LDVs to be acquired for all

State fleets, including all of its

agencies, and comply as one large

fleet,

OR

• Allow State agency fleet operators to

count vehicles, calculate, and

comply, either individually, or in

groups of two or more.

*(Please see the Appendix for definitions

of “Alternative Fueled Vehicles” and

“Acquired.”)

3. If a covered State chooses to allow its

State agency fleet operators to comply

separately, and an agency fleet does not

meet size guidelines according to #1, is it

exempt from acquisition requirements? 

If a State opts to allow its agencies to

comply separately, an agency that does

not meet the size guidelines would not be

covered, unless it is a participant in an

optional Alternative State Plan (see section

on optional Alternative State Plans). 

4. Must agencies who join each other for

calculation purposes make their

acquisitions together as well?

NO, they may acquire their vehicles however

they choose to, but they must file annual

reports together, as one fleet.
Page 5 (Guide to 10 CFR Part 490)

5. What vehicles are counted in

calculations?

Any new* LIGHT DUTY VEHICLE (LDV)

acquired by a covered State or State agency 

is counted in determining AFV acquisition

requirements (see #1).

*(“New” means not previously under the

control of the State, no matter when the

vehicle was manufactured.)

6. Which types of vehicles are NOT

COUNTED when calculating the

acquisition requirements?

EXCLUDED VEHICLES:

• Law enforcement vehicles;

• Emergency motor vehicles;

• Non-road vehicles;

• Vehicles which, under normal

operations, are parked at personal

residences when not in use;

• Vehicles used for motor vehicle

manufacturer product evaluations or

tests, including but not limited to,

- Vehicles owned or held by a

university for research

purposes, or 

- Vehicles owned or held by a

testing laboratory, or other

such evaluation facility, solely

for the purpose of evaluating

the performance of such

vehicle for engineering,

research and development or

quality control reasons; and

• Motor vehicles acquired and used for

purposes that the Secretary of

Defense has certified to DOE must

be exempt for national security

reasons.

These vehicles may be used to satisfy the

requirements although it is not required that

they be used.

7. Which LIGHT DUTY VEHICLES (LDVs)

are considered to be “Centrally Fueled or

Capable of Being Centrally Fueled?”

• LDVs that are refueled at least 75%

of the time at a location that is

owned, operated, or controlled by

any fleet, or under contract with that

fleet for refueling purposes.

FOR HELP IN DECIDING

WHETHER THE ALTERNATIVE

FUEL TRANSPORTATION

PROGRAM APPLIES TO

YOUR STATE GOVERNMENT

OR

STATE AGENCY

DOE HAS PROVIDED A

“DECISION TREE”

ON THE FOLLOWING PAGE
Page 6 (Guide to 10 CFR Part 490)

 Decision Tree on State Government fleets
Page 7 (Guide to 10 CFR Part 490)

8. What acquisition percentages apply to

State fleets?

Of the new LIGHT DUTY motor vehicles

(LDVs) acquired annually for State fleets or

State agency fleets subject to this rule (see

#1), the following percentages must be

ALTERNATIVE FUELED VEHICLES

(AFVs):

10 percent for model year 1997

15 percent for model year 1998

25 percent for model year 1999

50 percent for model year 2000

75 percent for model year 2001, and

thereafter.

For example, if a covered State or State

agency acquires 100 new LDVs in 1997, 10

percent (or 10) of those new LDVs must be 

AFVs.

9. Exactly how does a State or State

agency calculate fleet acquisition

requirements?

Each State or State agency will:

1. Start with the number of new LDVs

that will be acquired for a fleet, and 

2. Subtract any EXCLUDED vehicles,

then

3. Multiply the resulting number by the

decimal equivalent of the acquisition

percentage for that model year

(i.e., 10% equals .10) to get the

number of AFVs that must be

acquired.

EXAMPLE:

If a fleet plans to acquire 105 LDVs in 1997,

and 5 of those will be EXCLUDED vehicles,

then -

1. Take the total of new LDVs

to be acquired 105

2. Subtract EXCLUDED vehicles - 5

resulting in the number of

NON-EXCLUDED vehicles

that will be acquired = 100

3. Then multiply that figure

by .10 (the decimal

equivalent of 10%) x .10

resulting in the number of new

LIGHT DUTY AFVs that the fleet

must acquire in 1997 = 10

(Fractions should be rounded to the

nearest whole number.)

10. What if a State or State agency

becomes a fleet operator, according to

guidelines (see #1) after model year

1997?

A State that becomes classified as a fleet

operator meeting the size guidelines after

model year 1997 must acquire AFVs starting

the year after the State becomes a fleet

operator.

FOR EXAMPLE:

• If a State or State agency becomes a

fleet operator in 1998, it would need

to meet the acquisition requirements

beginning in 1999 (25%).

11. What forms of acquisition satisfy

requirements?

You will satisfy acquisition requirements if

you, 

• Purchase or lease a new LIGHT

DUTY VEHICLE (LDV) capable of

operating on alternative fuels;
Page 8 (Guide to 10 CFR Part 490)

OR

• Purchase or lease any

AFTER-MARKET CONVERTED LDV

not previously under the control of

the State (no matter when it was

manufactured) capable of operating

on alternative fuels. (Please see

Appendix for definition of an “Aftermarket converted vehicle”);

OR

• Convert a new LDV to operate on

alternative fuels within four months

after it comes under the control of

the State;

OR

• Apply AFV credits, earned or

acquired. (Please see section on

“Alternative Fueled Vehicle Credit

Program”).

12. May I count converted LDVs that I

already own or control to satisfy

acquisition requirements?

You MAY NOT count any vehicles that you

already own or control IF they are converted

after the rule takes effect,

BUT

Vehicles that were acquired on or after

October 24, 1992, and converted before

the effective date of the rule DO earn

credits (see #1 under “Alternative Fueled

Vehicle Credit Program”).

13. Which alternative fuels must an

Alternative Fueled Vehicle (AFV) be able

to operate on in order to satisfy

acquisition requirements?

LIGHT DUTY AFVs (including dual-fuel, 

bi-fuel, and flexible-fuel vehicles) must be

designed to operate on at least one of the

following fuels in order to satisfy acquisition

requirements:

• 100% methanol, denatured ethanol,

and other alcohols;

• Mixtures containing 85 percent or

more by volume of methanol,

denatured ethanol, and other

alcohols with gasoline or other fuels;

• Natural gas (compressed or

liquefied);

• Liquefied petroleum gas (propane);

• Electricity (including electricity from

solar energy);

• Hydrogen;

• Coal-derived liquid fuels; and

• Fuels (other than alcohol) derived

from biological materials, including

neat (100%) biodiesel.

NO OTHER FUELS ARE CURRENTLY

DESIGNATED AS ALTERNATIVE FUELS. 

RFG, Diesel, and Biodiesel blends do not

qualify as alternative fuels under EPACT.
Page 9 (Guide to 10 CFR Part 490)

14. May a State or State agency acquire

AFVs that are on the list of EXCLUDED

vehicles to satisfy ACQUISITION

requirements?

YES.

• You are NOT required to count

vehicle types from the excluded list

in making your calculations, and

• You DO NOT have to acquire

vehicles from the excluded list,

BUT

You MAY CHOOSE TO acquire any LIGHT

DUTY AFVs on the excluded list, instead of

other AFVs, to satisfy percentage

requirements (including to earn credits).

15. Are States required to obtain

CONVERTED vehicles?

NO, but they may CHOOSE to acquire

converted vehicles, according to guidelines

listed in #11.

16. May a State or State agency acquire

MEDIUM or HEAVY DUTY AFVs to satisfy

acquisition requirements?

Since the program’s aim is to put LIGHT

DUTY AFVs on the road, you may purchase

medium or heavy duty AFVs to earn credits

ONLY AFTER you have fulfilled your

LIGHT DUTY AFV percentage requirement

for that model year. You may use any

credits earned in this manner toward your

percentage requirements in the following

year(s).

FOR EXAMPLE:

• If you fulfill your percentage

requirements for 1997 by assuring

that 10% of your annual purchases

of LDVs are AFVs, then the

acquisition of any medium or heavy

duty AFVs above and beyond that

10% may earn credits toward

acquisition requirements for MY 1998

and future

model

years.

( Medium and

Heavy Duty Vehicles weigh more than

8,500 pounds gross vehicle weight rates.)

EXEMPTIONS FROM ACQUISITION

REQUIREMENTS

(EXEMPTIONS WILL BE GRANTED ON A

CASE-BY-CASE BASIS.)

1. What if suitable alternative fuels or

AFVs are not available?

You may apply for an exemption from the

acquisition requirements, with supporting

documentation.

FOR EXAMPLE:

• If the only AFVs available, that meet

your operating needs, are natural

gas powered, and compressed

natural gas is not available for

refueling, an exemption may be

granted.
Page 10 (Guide to 10 CFR Part 490)

2. What if additional costs associated

with AFVs poses unreasonable financial

hardship for a State?

You may apply for an exemption from the

acquisition requirements, with supporting

documentation.

3. How do I apply for an exemption?

Exemption requests should be submitted by

letter to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

4. When may I apply for an exemption?

Requests for exemption may be submitted

any time, as the need arises, and must be

accompanied with supporting

documentation. 

5. How long will an exemption remain in

effect?

Exemptions will be granted for one model

year only, but may be renewed with

subsequent requests and documentation. 

6. How long must I wait to find out

whether or not an exemption has been

granted?

DOE must provide a written determination

within 60 days of receipt of request.

7. May I appeal if my exemption is

denied?

YES. You may file an appeal within 30 days

of notification of the determination. Send

your appeal to:

Office of Hearings and Appeals

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

GENERAL REPORTING

REQUIREMENTS FOR STATES

1. How is compliance to be reported?

You must file an annual report with DOE for

each covered fleet. Send your report to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

or any address that might be later identified

in the Federal Register.

2. Will a form be provided for the annual

report?

Forms will be available. Please obtain

Information regarding such forms from

contacts listed in the Appendix. If filing an

electronic report, forms will not be required.

3. When does a State or State agency file

an annual report?

Annual reports must be filed with DOE on or

before December 31 after the close of each

model year, beginning with Model Year

1997.
Page 11 (Guide to 10 CFR Part 490)

4. Who files an annual report?

Each covered fleet operator must file an

annual report. If a State’s agencies are

calculating and complying separately, the

State government may choose to -

• Collect all reports and submit them to

DOE in one batch, or

• Permit each separate agency fleet to

submit its report directly to DOE. 

However a State chooses to submit annual

fleet reports, all reports must be received by

DOE by December 31, after the end of any

model year.

5. What information is to be included in

the annual report?

Annual reports will include the following

information:

• Number of new LDVs ACQUIRED

during the model year;

• Number of new Light Duty AFVs

REQUIRED in the model year;

• Number of new Light Duty AFVs

actually ACQUIRED during the

model year;

• Number of AFV CREDITS applied

against acquisition requirements;

• Number of new Light Duty AFVs

ACQUIRED by municipal and private

fleets during the model year under

an approved optional

ALTERNATIVE STATE PLAN (if

applicable -- see following section on

optional “Alternative State Plans” ).

For each new LIGHT DUTY AFV acquired

you must list the following:

• Vehicle make and model;

• Model years;

• Vehicle identification number;

• Whether the vehicle is dedicated or

dual-fueled (including flexible fueled);

and

• The type of alternative fuel the

vehicle is capable of operating on.

If credits are applied against vehicle

acquisition requirements, a Credit Activity

Report must be submitted along with the

general annual report to DOE (form will be

available, please request information from

contacts in Appendix).

6. Where must annual reports be sent?

All reports must be marked "Annual Report,"

and sent to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

DOE also plans to offer electronic filing via

the Worldwide Web or modem in time for the

MY1997 reports.

7. How long must records be kept?

Three years.
Page 12 (Guide to 10 CFR Part 490)
Page 13 (Guide to 10 CFR Part 490)

ALTERNATIVE STATE

PLANS 

Under this option, States have an

opportunity to be creative and

formulate plans unique to their

situation, involving the voluntary

participation of local and private

fleets.

Instead of meeting its acquisition

requirements on its own, a State or

State agency may formulate and

seek approval for a "LIGHT DUTY

ALTERNATIVE FUELED VEHICLE

PLAN," under which local

governments and private entities

could join the State, on a voluntary

basis, not only in fulfilling the

acquisition requirements of this

program, but in the coordination of

community efforts toward introducing

alternative fuels.

(Optional Alternative State plans must

provide for the acquisition of the same

number, or more, of Light Duty AFV

acquisitions as would be otherwise

required.)

1. What must be written into an optional 

ALTERNATIVE STATE PLAN?

Each optional ALTERNATIVE STATE PLAN

must include:

• Certification by the Governor (or a

person designated to represent the

Governor) that the plan meets the

minimum acquisition requirements of

the regulation as it applies to the

State fleet;

• Identification of State, local, and

private fleets that will participate in

the plan;

• The number of new Alternative

Fueled Vehicles to be acquired in

each model year by each plan

participant, either through conversion

or acquisition; 

• A written statement from each plan

participant declaring its commitment;

• A statement of alternative measures

to offset any failure, by a participant,

to fulfill commitments;

• A provision by the State to monitor

and verify implementation of the

plan;

• A provision certifying that all

acquisitions and conversions under

the plan are voluntary and will

conform with requirements of Section

247 of the Clean Air Act, and all

applicable safety requirements;

• Identification of a State contact. 

2. What types of AFV acquisitions will

satisfy an optional ALTERNATIVE STATE

PLAN?

ANY acquisitions or conversions of LIGHT

DUTY AFVs may be included within the

plan, EVEN vehicles in the excluded

categories. This allows for excluded

vehicles, such as police cars, to be part of

the plan.
Page 14 (Guide to 10 CFR Part 490)

3. When should a State submit its

optional ALTERNATIVE STATE PLAN?

For model year 1997, a State must submit

its optional plan by 12 months after the date

of publication of this rule. 

Beginning with model year 1998, a State

will need to submit its optional

ALTERNATIVE STATE PLAN no later than

June 1 prior to any model year.

4. Where does a State submit its optional 

ALTERNATIVE STATE PLAN?

An original and two copies should be sent to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

5. How are optional ALTERNATIVE

STATE PLANS approved, and how long

does it take?

DOE will review each plan and notify a State

or State agency of the plan’s approval or

disapproval within 60 days of receipt of the

plan.

6. How does a State proceed after

submission of its optional ALTERNATIVE

STATE PLAN?

Until an optional plan is approved, a State is

subject to statutory acquisition requirements.

7. May a State ever modify an alreadyapproved optional ALTERNATIVE STATE

PLAN?

If a State finds it impossible to successfully

implement its approved plan, it may submit

(at any time) proposed modifications (with

adequate justifications) to DOE for approval.

Until any modifications are approved, the

State must comply with existing

commitments, or the statutory acquisition

requirements. Requests for modifications

must be sent to: 

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

8. What if an optional ALTERNATIVE

STATE PLAN is not approved?

A State may revise and resubmit its plan to

DOE within a reasonable time, but it must

comply with existing commitments or

statutory acquisition requirements until such

time as the plan is approved.

9. Must States monitor implementation

by optional ALTERNATIVE STATE PLAN 

participants?

YES. A State must monitor and verify the

implementation of its optional plan. Reports

on this implementation will need to be

included in the annual report to DOE. 
Page 15 (Guide to 10 CFR Part 490)
Page 16 (Guide to 10 CFR Part 490)

COVERAGE AND GENERAL

REQUIREMENTS FOR FUEL

PROVIDERS

1. The Alternative Fuel Transportation

Program applies only to ALTERNATIVE

fuel providers. Are you (or is any

“business unit” under your control) an

ALTERNATIVE fuel provider?

A fuel provider (or any “affiliate” or ”business

unit” under its control) is an alternative fuel

provider IF its “principal business” is -

• producing,

storing,

refining,

processing,

transporting,

distributing,

importing or selling

(at wholesale or retail)

any ALTERNATIVE FUEL (other

than electricity);

OR

• generating,

transmitting,

importing, or

selling (at wholesale or retail)

electricity;

OR

if that fuel provider -

• produces,

imports, or

produces and imports (in

combination),

- an average of 50,000 barrels

per day or more of petroleum;

AND

- 30% ( A “substantial portion”)

or more of its gross annual

revenues are derived from

producing alternative fuels.

(Please see the Appendix for definitions

of “business unit,” “principal business,”

and “substantial portion.”)

EXCEPTIONS: 

Two types of alternative fuel providers (or

affiliates or business units of that fuel

provider) are NOT COVERED by acquisition

requirements. 

A fuel provider is NOT covered if -

• It is a fuel provider whose principal

business is that of transforming

alternative fuel into products that are

NOT alternative fuels;

OR

• It is a fuel provider whose principal

business is that of using alternative

fuel as a feedstock or fuel in the

manufacture of products that are

NOT alternative fuels.

EXAMPLES:

• A company that burns natural gas to

make heat for a manufacturing

operation.

• A manufacturer of windshield washer

fluid that blends an alternative fuel

(methanol) in producing windshield

washer fluid, which is not an

alternative fuel.
Page 17 (Guide to 10 CFR Part 490)

2. If I am an “Alternative Fuel Provider,”

according to #1, how do I determine

whether I’m a “COVERED PERSON” who

must acquire Alternative Fueled Vehicles

(AFVs)?

You are a covered person if you own,

operate, lease, or otherwise control -

• 50 or more LIGHT DUTY

VEHICLES (LDVs)* within

the United States which are

NOT on the list of 

EXCLUDED vehicles (see #4

for list of excluded vehicles),

AND

• 20 of those LDVs are used primarily

within any MSA or CMSA

(Consolidated / Metropolitan

Statistical Area--see Appendix for

list),

AND

• Those 20 same LDVs are centrally

fueled, or capable of being centrally

fueled (see #5 for guidelines on

“centrally fueled” vehicles).

*(Please see the Appendix for definition

of “Alternative Fueled Vehicles,” and

“Light Duty Vehicles.”)

3. What vehicles are counted in

calculations?

Any new* LIGHT DUTY VEHICLE (LDV)

acquired by a covered person is counted in

determining AFV acquisition requirements

(see #2).

*(“New” meaning not previously under

the control of the covered person, no

matter when the vehicle was

manufactured.)

4. What types of LDVs are NOT

COUNTED toward the acquisition

requirements?

EXCLUDED VEHICLES:

Excluded vehicle types are:

• Law enforcement vehicles;

• Emergency motor vehicles;

• Non-road vehicles;

• Motor vehicles which under normal

operations are parked at personal

residences when not in use;

• Vehicles used for motor vehicle

manufacturer product evaluations or

tests, including but not limited to,

- Vehicles owned or held by a

university for research

purposes, or 

- Vehicles owned or held by a

testing laboratory, or other

such evaluation facility, solely

for the purpose of evaluating

the performance of such

vehicle for engineering,

research and development or

quality control reasons; and

• Motor vehicles acquired and used for

purposes that the Secretary of

Defense has certified to DOE must

be exempt for national security

reasons.
Page 18 (Guide to 10 CFR Part 490)

5. What vehicles are considered to be

"Centrally Fueled or Capable of Being

Centrally Fueled?"

• Vehicles that are refueled at least

75% of the time at a location that is

owned, operated, or controlled by the

fleet, or is under contract with the

fleet for refueling purposes.

FOR HELP IN

DECIDING WHETHER THE 

ALTERNATIVE FUEL

TRANSPORTATION PROGRAM

 APPLIES TO YOUR COMPANY

OR NOT, DOE HAS PROVIDED A

“DECISION TREE”

ON THE FOLLOWING PAGE
Page 19 (Guide to 10 CFR Part 490)

Decision Tree for Alternative Fuel Providers
Page 20 (Guide to 10 CFR Part 490)

6. What acquisition percentages are

 required for covered alternative fuel

providers?

Of the new LIGHT DUTY motor vehicles

(LDVs) acquired annually for covered fuel

providers, the following percentages must be

ALTERNATIVE FUELED VEHICLES

(AFVs):

30 percent for model year 1997

50 percent for model year 1998

70 percent for model year 1999

90 percent for model year 2000, and

thereafter.

This acquisition schedule applies to all LDVs

fuel providers newly acquire for use within

the United States.

7. How does a covered alternative fuel

provider calculate fleet acquisition

requirements?

A covered alternative fuel provider will:

1. Start with the number of new LDVs 

to be acquired for each fleet, and

2. Subtract any EXCLUDED vehicles,

then

3. Multiply the resulting number by the

decimal equivalent of the acquisition

percentage for that model year.

For example, if an alternative fuel provider

plans to acquire 105 LDVs in 1997, and 5 of

these will be EXCLUDED vehicles, then

1. Take the total of NEW LDVs

to be acquired 105

2. subtract EXCLUDED vehicles - 5

resulting in the number of

NON-EXCLUDED vehicles

that will be acquired = 100

3. multiply that number by

.30 (the decimal

equivalent of 30%) x .30

resulting in the number of new

LIGHT DUTY AFVs that must

be acquired in 1997 = 30

(Fractions should be rounded to the

nearest whole figure.)

8. Will Municipal gas and electric utilities

be subject to any future municipal fleet

acquisition requirements imposed by

regulation?

NO. Gas and electric utilities subject to the

alternative fuel provider requirements will not

be included in any future municipal fleet

program.

9. What is a “Holding Company?”

A Holding Company is a corporate identity

for two or more operating companies, which

it owns, that are called “affiliates.”*

*(Please see the Appendix for definition

of “affiliate.”)
Page 21 (Guide to 10 CFR Part 490)

10. How does a holding company which

deals in the alternative fuels business

comply with this program?

DOE considers a holding company to be the

Covered Person. 

The holding company (as the covered

person) may choose to comply with its

acquisition requirements as a single entity,

or it may have any affiliates that are

substantially engaged in the alternative

fuels business comply separately.

(See the Appendix for definition of

“substantially engaged.”) 

11. What if an alternative fuel provider is

newly classified as a Covered Person

after Model Year 1997?

An alternative fuel provider that is newly

classified as a Covered Person after model

year 1997 must acquire alternative fueled

vehicles (AFVs) starting the next model

year with the percentage in effect for that

year. 

FOR EXAMPLE, if an alternative fuel

provider becomes a covered person in

MY1998, it would need to meet the

acquisition requirements starting with

MY1999.

12. What acquisitions satisfy program

requirements?

A covered fuel provider will satisfy

acquisition requirements if it - 

• Purchases or leases a new LIGHT

DUTY VEHICLE (LDV) capable of

operating on alternative fuels; 

OR

• Purchases or leases any

 AFTER-MARKET CONVERTED

LDV not previously under the

covered person’s control (no

matter when it was manufactured)

capable of operating on alternative

fuels (see Appendix for definition of

an “After-market converted vehicle”);

OR

• Converts a new LDV to operate on

alternative fuels within four months

after it comes under the control of

the fuel provider;

OR

• Applies AFV Credits (Please see

section on “Alternative Fueled

Vehicle Credits.”)

13. May a covered alternative fuel

provider count converted LDVs that it

already owns or controls to satisfy

acquisition requirements?

It MAY NOT count any vehicles it already

owns or controls if they are converted after

the rule takes effect,

BUT

Vehicles that were acquired on or after

October 24, 1992, and converted before

the effective date of this rule DO earn

credits (see #1 under “Alternative Fueled

Vehicle Credit Program.”)

14. Is a covered alternative fuel provider

(covered person) required to obtain

CONVERTED vehicles?

NO, but it may CHOOSE to acquire

converted vehicles, according to guidelines

in #12.
Page 22 (Guide to 10 CFR Part 490)

15. May a covered alternative fuel

provider acquire vehicles that appear on

the list of EXCLUDED vehicles to satisfy

acquisition requirements?

YES.

• You are NOT required to count

vehicle types from the excluded list

in making your calculations, and

• You DO NOT have to acquire

vehicles from the excluded list,

BUT

You MAY CHOOSE TO acquire any LIGHT

DUTY AFVs on the excluded list, instead of

other AFVs, to satisfy percentage

requirements (including to earn credits).

16. May a covered alternative fuel

provider acquire MEDIUM or HEAVY

DUTY AFVs to satisfy acquisition

requirements?

Since the program’s aim is to put LIGHT

DUTY AFVs on the road, a covered

alternative fuel provider may purchase

medium or heavy duty AFVs to earn credits 

ONLY AFTER it has fulfilled its LIGHT

DUTY AFV percentage requirements for

that model year. It may then use any

credits earned in this manner toward its

percentage requirements for the following

year(s).

FOR EXAMPLE:

• If a covered alternative fuel provider 

fulfills its acquisition requirements for

1997 by acquiring light duty

alternative fueled vehicles equaling

10% of its annual purchases of light

duty vehicles (LDVs), then the

acquisition of any medium or heavy

duty AFVs above and beyond that

10% may earn credits toward

acquisition requirements for MY1998

and future model years.

(Medium and Heavy Duty Vehicles weigh

more than 8,500 pounds gross vehicle

weight rating.)

17. What alternative fuels must an 

alternative fueled vehicle (AFV) be able to

operate on in order to satisfy acquisition

requirements?

AFVs (including dual-fuel, bi-fuel, and

flexible fuel-vehicles) must be designed to

operate on one of the following fuels in order

to satisfy acquisition requirements:

• 100% methanol, denatured ethanol,

and other alcohols;

• Mixtures containing 85 percent or

more by volume of methanol,

denatured ethanol, and other

alcohols with gasoline or other fuels;

• Natural gas (compressed or

liquefied);

• Liquefied petroleum gas (propane);

• Electricity (including electricity from

solar energy);

• Hydrogen;

• Coal-derived liquid fuels;

• Fuels (other than alcohol) derived

from biological materials (including

neat or (100%) biodiesel).

NO OTHER FUELS ARE CURRENTLY

DESIGNATED AS ALTERNATIVE FUELS. 

RFG, Diesel, and Biodiesel blends do not

qualify as alternative fuels under EPACT.
Page 23 (Guide to 10 CFR Part 490)

18. Must a covered alternative fuel

provider always use alternative fuels in

its AFVs?

YES, unless it is operating in an area where

the appropriate fuel is unavailable (see

“Exemptions”).

ELECTRIC VEHICLE

OPTION FOR ELECTRIC

UTILITIES

1. May an electric utility delay

acquisitions?

If a fuel provider whose principal

business is generating,

transmitting, importing, or selling

electricity, intends to comply

with this regulation by acquiring

ELECTRIC motor vehicles, it has

the option of delaying scheduled

acquisition until January 1, 1998,

if it has notified DOE by January

1, 1996. DOE will handle late

requests for schedule delays on

a case-by-case basis. 

2. What are the acquisition

requirements for electric

utilities that chose the delay option?

If an electric utility has notified DOE of its

intent to acquire electric motor vehicles, the

following percentages of new LDVs must be

AFVs for the following time periods:

30 percent from January 1, 1998

to August 31, 1998

50 percent for model year 1999

70 percent for model year 2000

90 percent for model year 2001, and

thereafter

Calculations for electric utility fleets should

be made in the same way calculations are

made for any covered alternative fuel

provider fleet (see preceding section for

instructions).

3. Is the electric utility option available

for a combination utility?

YES. A utility that provides both natural gas

and electricity is being allowed to choose to

comply as two separate organizations.

The electric side of the utility may apply for

the electric utility option, while the natural

gas side follows the regular fuel provider

acquisition schedule.

EXEMPTIONS FROM ACQUISITION

REQUIREMENTS

(EXEMPTIONS WILL BE GRANTED ON A

CASE-BY-CASE BASIS.)

1. What if Suitable Alternative Fuels or

AFVs Are Not Available? 

The alternative fuel provider may be entitled

to an exemption from the acquisition

requirements upon application to DOE. 

FOR EXAMPLE:

• If the only AFVs currently available

for meeting a particular operating

function are natural gas powered,

and compressed natural gas is not

available for refueling the fuel

provider’s vehicles, an exemption

may be granted (in whole or in part,

depending upon the circumstances).
Page 24 (Guide to 10 CFR Part 490)

2. How are exemption requests to be

submitted?

Exemption requests should be submitted by

letter to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

3. When may a covered fuel provider

submit an exemption request?

Requests for exemption may be submitted

any time the need arises, and they must be

accompanied with supporting

documentation.

4. How long will an exemption remain in

effect?

Exemptions will be granted for one model

year only, but may be renewed with

subsequent requests and documentation. 

5. How long must a fuel provider wait to

find out whether or not an exemption has

been granted?

DOE will issue a written determination on 

whether the fuel provider's request for

exemption has been granted or denied

within 60 days after its receipt.

6. May a covered fuel provider (covered

person) appeal a denial of its request for

an exemption?

YES. If a covered fuel provider wishes to

appeal a denial of exemption, it must file an

appeal, within 30 days of notification of

denial, with the -

Office of Hearings and Appeals

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

GENERAL REPORTING REQUIREMENTS

FOR FUEL PROVIDERS 

1. How is compliance to be reported to

DOE?

A covered fuel provider must file an annual

report with:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

On or before December 31 after the close of

any model year, beginning with Model Year

1997.

(Forms will be available. Please request

information from contacts listed in the

Appendix.)

2. What Information is to be included in

the annual report?

Annual reports must include the following

information:

• Number of new LDVs ACQUIRED

during the model year;

• Number of new Light Duty AFVs

REQUIRED in the model year;
Page 25 (Guide to 10 CFR Part 490)

• Number of new Light Duty AFVs

actually ACQUIRED during the

model year;

• Number of AFV CREDITS applied

against acquisition requirements;

For each new light duty AFV acquired the

Alternative Fuel Provider must list the

following:

• Vehicle make and model;

• Model year;

• Vehicle identification number;

• Whether the vehicle is dedicated or

dual-fuel; and

• Type of alternative fuel the vehicle is

capable of operating on.

If credits are applied against vehicle

acquisition requirements, then a Credit

Activity Report must be submitted with the

general annual report to DOE. (Form will be

available. Please request information from

contacts listed in the Appendix.)

3. Where must annual reports be sent?

All reports must be marked "Annual Report"

and sent to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

4. How long must records be kept?

Three years.
Page 26 (Guide to 10 CFR Part 490)
Page 27 (Guide to 10 CFR Part 490)

ALTERNATIVE FUELED VEHICLE

CREDIT PROGRAM

The purpose of the Credit Program is to

provide flexibility for State fleet operators

and Alternative Fuel Providers without

sacrificing the program's energy security

goals.

1. How are credits earned under the

Credit Program?

States and Fuel Providers may earn credits

by -

• Acquiring AFVs in greater numbers

than required in any model year,

OR 

• Acquiring AFVs earlier than required.

DOE will allocate one credit for each AFV a

covered State or fuel provider fleet acquires

beyond acquisition requirements for any

model year.

If an AFV is acquired by a State or fuel

provider fleet before model year 1997, DOE

will allocate one credit per AFV for each year

the AFV is acquired before acquisition

requirements apply, 

BUT

DOE will allocate these early acquisition

credits only for AFVs acquired after

October 24, 1992 (the date EPACT

became law).

2. How will AFV credits count?

A credit counts as the acquisition of one

qualified AFV.

3. May credits be transferred?

Credits may be transferred to: 

• Any State fleet that must acquire 

alternative fuel vehicles,

OR

• Any fuel provider, if the State or fuel

provider fleet which holds the credit

provides certification that the credit

represents a vehicle that operates

solely on alternative fuel when

operating in an area where the

alternative fuel is available.

(If, in the future, DOE requires private and

local fleets to acquire AFVs, credits may

be transferred to them as well.)

Proof of credit transfer may be on a form

provided by DOE, or otherwise in writing,

and must include dated signatures of both

parties involved. This proof should be

received by DOE within 30 days of the

transfer date at -

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

(Forms will be available. Please request

information from contacts listed in the

Appendix.)

4. What types of transfer are OK?

Credits may be bought or sold. In addition,

a credit may be given away, or traded.
Page 28 (Guide to 10 CFR Part 490)

5. How must credit activities be

reported?

A State or fuel provider fleet must submit a

“Credit Activity” report, along with its

annual report on compliance to:

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

by each December 31 after the close of the

applicable model year.

(Forms will be available. Please request

information from contacts listed in the

Appendix.)

6. What must a Credit Activity Report

include?

This report must include the following

information:

• For allocation of credits due to

purchase or lease of vehicles,

numbers of

- AFVs acquired in excess of

required acquisition number;

and

- AFVs acquired in model

years before model year

1997; 

• For purchase of AFV credits:

- credit source; and

- date of purchase;

• For sale of AFV credits:

- credit purchaser; and

- date of sale;

• For transfer of AFV credits:

- credit source, and

- date of transfer.

7. How will credits be accounted for?

DOE will establish a credit account for each

fleet that obtains an AFV credit, and will

send to each fleet an annual credit account

balance statement after receipt of the Credit

Activity Report.
Page 29 (Guide to 10 CFR Part 490)
Page 30 (Guide to 10 CFR Part 490)

REQUESTS FOR INTERPRETIVE

RULING

Any person who is, or may be, subject to

this rule has the right to file a request for an

interpretive ruling on a question with regard

to how the regulations apply to particular

facts and circumstances. Submit requests

for interpretive rulings to -

Alternative Fuel Transportation Program

Office of Energy Efficiency and 

Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

ENFORCEMENT

1. Are These Requirements Enforceable?

YES. DOE has been granted enforcement

authority by EPACT

2. If I violate the requirements of the

program, what penalties might be

incurred?

Penalties and Fines for violations are as

follows:

• Whoever violates applicable sections

of the rule will be subject to a civil

penalty of not more than $5,000 for

each violation.

• Whoever willfully violates applicable

sections of the rule will pay a

criminal fine of not more than

$10,000 for each violation.

• Any person who knowingly and

willfully violates applicable sections

of the rule, after having been

subjected to a civil penalty for a prior

violation, will pay a criminal fine of

not more than $50,000 for each

violation.

3. Will I be given notice of DOE’s

intention to bring an enforcement action?

YES. Except for repeated violations or other

unusual circumstances, DOE will give

persons at least 90 days notice of its intent

to bring an enforcement action. This will

provide time for discussion of ways to settle

any dispute.

Please see the rule (Subpart G:

Investigations and Enforcement) for

details on Assessments, Orders to Pay,

Hearings, General or Special Orders, and

Appeals.
Page 31 (Guide to 10 CFR Part 490)
Page 32 (Guide to 10 CFR Part 490)

ADDRESSES RELATED TO COMPLIANCE

The addresses listed here are mainly for appeals of DOE decisions and general

submissions regarding the Alternative Fuel Transportation Program. The next

page provides additional means to obtain information and help.

To be used for appeals of interpretive rulings and denials of exemptions:

Office of Hearings and Appeals

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585

To be used for all other submissions:

Alternative Fuel Transportation Program

Office of Energy Efficiency and Renewable Energy, EE-33

U.S. Department of Energy

1000 Independence Avenue, S.W.

Washington, D.C. 20585
Page 33 (Guide to 10 CFR Part 490)

ADDITIONAL SOURCES OF INFORMATION ABOUT

DOE’s ALTERNATIVE FUEL TRANSPORTATION PROGRAM

In order to obtain a full copy of the rule, or any one of the many sources of useful

information DOE provides, please feel free to contact any of the following for details:

"EREC"

EREC is the ENERGY EFFICIENCY AND RENEWABLE ENERGY

CLEARINGHOUSE that responds to phone, mail, and electronic inquiries. 

Inquiries to EREC range from simple requests for information to complex technical

questions and requests for energy-related business development assistance. All

information is provided free of charge.

For EREC: call 1-800-DOE-EREC (363-3732).

TDD (Telecommunications Device for the Deaf): 1-800-273-2957

Computer Bulletin Board: 1-800-273-2955

Internet Electronic Mail: energyinfo@delphi.com

Fax: 1-703-893-0400 

World Wide Web users on the Internet can also access EREC information through

"EREN," the Energy Efficiency and Renewable Energy Network. EREN gives

users a gateway to information and resources from national laboratories, and

other organizations. With your World Wide Web browser software, use

http://www.eren.doe.gov.

INFORMATION MAY ALSO BE OBTAINED FROM:

NATIONAL ALTERNATIVE FUELS HOTLINE AND DATA CENTER:

1-800-423-1DOE

http://www.afdc.doe.gov

The National Alternative Fuels Hotline and Data Center provide information on all issues

related to alternative transportation fuels and is free of charge.

CLEAN CITIES HOTLINE:

1-800-CCITIES

OFFICE OF THE FEDERAL REGISTER:

800 N. Capitol St., N.W., Room 700

Washington, D.C., 20408
Page 34 (Guide to 10 CFR Part 490)

METROPOLITAN STATISTICAL AREAS (MSAs) and

CONSOLIDATED METROPOLITAN STATISTICAL AREAS (CMSAs)

with 1980 Populations of 250,000 or more

AREA STATES ENCOMPASSED

Albany-Schenectady-Troy MSA NY

Albuquerque MSA NM

Allentown-Bethlehem-Easton MSA PA

Appleton-Oshkosh-Neenah MSA WI

Atlanta MSA GA

Augusta-Aiken MSA GA-SC

Austin-San Marcos MSA TX

Bakersfield MSA CA

Baton Rouge MSA LA

Beaumont-Port Arthur MSA TX

Binghamton MSA NY

Birmingham MSA AL

Boise City MSA ID

Boston-Worcester-Lawrence CMSA MA-NH-ME-CT

Buffalo-Niagara Falls MSA NY

Canton-Massillon MSA OH

Charleston MSA SC

Charleston MSA WV

Charlotte-Gastonia-Rock Hill MSA NC-SC

Chattanooga MSA TN-GA

Chicago-Gary-Kenosha CMSA IL-IN-WI

Cincinnati-Hamilton CMSA OH-KY-IN

Cleveland-Akron CMSA OH

Colorado Springs MSA CO

Columbia MSA SC

Columbus MSA OH

Columbus MSA GA-AL

Corpus Christi MSA TX

Dallas-Fort Worth CMSA TX

Davenport-Moline-Rock Island MSA IA-IL 

Dayton-Springfield MSA OH

Daytona Beach MSA FL

Denver-Boulder-Greeley CMSA CO

Des Moines MSA IA

Detroit-Ann Arbor-Flint CMSA MI

Duluth MSA MN-WI

El Paso MSA TX

Erie MSA PA

Eugene-Springfield MSA OR

Evansville-Henderson MSA IN-KY
Page 35 (Guide to 10 CFR Part 490)

Fort Wayne MSA IN

Fresno MSA CA

Grand Rapids-Muskegon-Holland MSA MI

Greensboro-Winston Salem-High Point MSA NC

Greenville-Spartanburg-Anderson MSA SC

Harrisburg-Lebanon-Carlisle MSA PA

Hartford MSA CT

Hickory-Morgantown MSA NC

Honolulu MSA HI

Houston-Galveston-Brazoria CMSA TX

Huntington-Ashland MSA WV-KY-OH

Indianapolis MSA IN

Jackson MSA MS

Jacksonville MSA FL

Johnson City-Kingsport-Bristol MSA TN-VA

Johnstown MSA PA

Kalamazoo-Battle Creek MSA MI

Kansas City MSA MO-KS

Knoxville MSA TN

Lakeland-Winter Haven MSA FL

Lancaster MSA PA

Lansing-East Lansing MSA MI

Las Vegas MSA NV-AZ

Lexington MSA KY

Little Rock-N. Little Rock MSA AR

Los Angeles-Riverside-Orange County CMSA CA

Louisville MSA KY-IN

Macon MSA GA

Madison MSA WI

McAllen-Edinburg-Mission MSA TX

Melbourne-Titusville-Palm Bay MSA FL

Memphis MSA TN-AR-MS

Miami-Fort Lauderdale CMSA FL

Milwaukee-Racine CMSA WI

Minneapolis-St. Paul MSA MN-WI

Mobile MSA AL

Modesto MSA CA

Montgomery MSA AL

Nashville MSA TN

New London-Norwich MSA CT-RI

New Orleans MSA LA

New York-N. New Jersey-Long Island CMSA NY-NJ-CT-PA

Norfolk-Virginia Beach-Newport News MSA VA-NC

Oklahoma City MSA OK

Omaha MSA NE-IA

Orlando MSA FL

Pensacola MSA FL

Peoria-Pekin MSA IL
Page 36 (Guide to 10 CFR Part 490)

Philadelphia-Wilmington-Atlantic City CMSA PA-NJ DE-MD

Phoenix-Mesa MSA AZ

Pittsburgh MSA PA

Portland-Salem CMSA OR-WA

Providence-Fall River-Warwick MSA RI-MA

Raleigh-Durham-Chapel Hill MSA NC

Reading MSA PA

Richmond-Petersburg MSA VA

Rochester MSA NY

Rockford MSA IL

Sacramento-Yolo CMSA CA

Saginaw-Bay City-Midland MSA MI

St. Louis MSA MO-IL

Salinas MSA CA

Salt Lake City-Ogden MSA UT

San Antonio MSA TX

San Diego MSA CA

San Francisco-Oakland-San Jose CMSA CA

San Juan MSA PR

Santa Barbara-Santa Maria-Lompoc MSA CA

Scranton-Wilkes Barre-Hazleton MSA PA

Seattle-Tacoma-Bremerton CMSA WA

Shreveport-Bossier City MSA LA

Spokane MSA WA

Springfield MSA MA

Stockton-Lodi MSA CA

Syracuse MSA NY

Tampa-St. Petersburg-Clearwater MSA FL

Toledo MSA OH

Tucson MSA AZ

Tulsa MSA OK

Utica-Rome MSA NY

Washington-Baltimore CMSA DC-MD-VA-WV

West Palm Beach-Boca Raton MSA FL

Wichita MSA KS

York MSA PA

Youngstown-Warren MSA OH
Page 37 (Guide to 10 CFR Part 490)

DEFINITIONS

Acquire means to take into possession or control, such as through purchase, lease, etc.

Act means the Energy Policy Act of 1992 (Pub. L. 102-486) and any amendments

thereof.

Affiliate means a person that, directly or indirectly, controls, is controlled by, or is

under common ownership or control of the subject person.

After-Market Converted Vehicle means an original equipment manufacturer

vehicle that is reconfigured by a conversion company, which is not under contract

to the original equipment manufacturer, to operate on an alternative fuel and

whose conversion kit components are under warranty of the conversion company

(includes both dedicated and dual-fuel vehicles).

Alternative Fuel means methanol, denatured ethanol, and other alcohols;

mixtures containing 85 percent or more by volume of methanol, denatured

ethanol, and other alcohols with gasoline or other fuels; natural gas; liquefied

petroleum gas; hydrogen; coal-derived liquid fuels; fuels (other than alcohol)

derived from biological materials (including neat biodiesel); and electricity

(including electricity from solar energy).

Alternative Fuels Business means activities undertaken to derive revenue from -

-

(1) Producing, storing, refining, processing, transporting, distributing,

importing, or selling at wholesale or retail any alternative fuel other than

electricity, or

(2) Generating, transmitting, importing, or selling at wholesale or retail electricity.

Alternative Fueled Vehicle means a dedicated vehicle or a dual fueled vehicle

(including a flexible fuel vehicle).

Assistant Secretary means the Assistant Secretary for Energy Efficiency and

Renewable Energy or any other DOE official to whom the Assistant Secretary's

duties under this part may be delegated by the Secretary.

Automobile means a 4-wheeled vehicle propelled by conventional fuel, or by alternative

fuel, manufactured primarily for use on public streets, roads, and highways (except a

vehicle operated only on a rail line), and rated at -

(1) Not more than 6,000 pounds gross vehicle weight; or

(2) More than 6,000, but less than 10,000 pounds gross vehicle weight, if the

Secretary of Transportation has decided, by rule, that the vehicle meets the

criteria in section 501(1) of the Motor Vehicle Information and Cost Savings Act,

as amended, 49 U.S.C. 32901(a)(3). 
Page 38 (Guide to 10 CFR Part 490)

Business Unit means a semi-autonomous major grouping of activities for

administrative purposes and organizational structure within a business entity and

that is controlled by or under control of the subject person.

Centrally Fueled / Capable of Being Centrally Fueled means a vehicle can be

refueled at least 75 percent of its time at a location that is owned, operated, or

controlled by the fleet or Covered Person, or is under contract with the fleet or

Covered Person for refueling purposes.

Control

! When “control” is used in the context determining whether one person

controls another or whether two persons are under common control, it

means any one or a combination of the following:

- A third person or firm has equity ownership of 51 percent or more

in each of two firms; or

- Two or more firms have common corporate officers, in whole or in

substantial part, who are responsible for the day-to-day operation

of the companies; or

- One firm leases, operates, supervises, or in 51 percent or greater

part owns equipment and/or facilities used by another person or

firm, or has equity ownership of 51 percent or more of another firm.

! When “control” is used to refer to the management of vehicles, it means a

person has the authority to decide who can operate a particular vehicle,

and the purposes for which the vehicle can be operated.

! When “control” is used to refer to the management of people, it means a

person has the authority to direct the activities of another person or

employee in a precise situation, such as the workplace.

! At least 50 LDVs within the United States.

Covered Person means a person that owns, operates, leases, or otherwise

controls - 

! A fleet, as defined by this section, is a group of light duty motor vehicles

that contains

(1) at least 20 LDVs that are centrally fueled or capable of being centrally

fueled, and are used primarily within a metropolitan statistical area or a

consolidated metropolitan statistical area, as established by the Bureau of

the Census, with a 1980 population of 250,000 or more, or in a Federal

Register notice; and

(2) at least 50 light duty motor vehicles within the United States. 
Page 39 (Guide to 10 CFR Part 490)

Dealer Demonstration Vehicle means any vehicle that is operated by a motor

vehicle dealer solely for the purpose of promoting motor vehicle sales, either on

the sales lot or through other marketing or sales promotions, or for permitting

potential purchasers to drive the vehicle for pre-purchase or pre-lease evaluation.

Dedicated Vehicle means --

(1) An automobile that operates solely on alternative fuel; or

(2) A motor vehicle, other than an automobile, that operates solely on alternative fuel.

Division means a major administrative unit of an enterprise comprising at least

several enterprise units or constituting a complete integrated unit for a specific

purpose and that is controlled by or under control of the subject person.

DOE means the Department of Energy.

Dual Fueled Vehicle means--

(1) An automobile that meets the criteria for a dual fueled automobile as that term is

defined in section 513(h)(1)(C) of the Motor Vehicle Information and Cost Savings

Act, 49 U.S.C. 32901(a)(8); or

(2) A motor vehicle, other than an automobile, that is capable of operating on

alternative fuel and on gasoline or diesel fuel; or

(3) A flexible fuel vehicle.

Electric-hybrid Vehicle means a vehicle primarily powered by an electric motor

that draws current from rechargeable storage batteries, fuel cells or other sources

of electric current and also relies on a non-electric source of power.

Electric Motor Vehicle means a motor vehicle primarily powered by an electric

motor that draws current from rechargeable storage batteries, fuel cells,

photovoltaic arrays, or other sources of electric current and may include an

electric-hybrid vehicle.

Emergency Motor Vehicle means any vehicle that is legally authorized by a

government authority to exceed the speed limit to transport people and equipment

to and from situations in which speed is required to save lives or property, such as

a rescue vehicle, fire truck or ambulance.

Fleet means, except as provided by section 490.3, a group of 20 or more light

duty motor vehicles, used primarily in a metropolitan statistical area or

consolidated metropolitan statistical area, as established by the Bureau of the

Census as of December 31, 1992, with a 1980 Census population of more than

250,000 (listed in Appendix A to this Subpart), that are centrally fueled or capable
Page 40 (Guide to 10 CFR Part 490)

of being centrally fueled, and are owned, operated, leased, or otherwise

controlled-- 

(1) By a person who owns, operates, leases, or otherwise controls

50 or more light duty motor vehicles within the United States and

its possessions and territories; 

(2) By any person who controls such person;

(3) By any person controlled by such person; and

(4) By any person under common control with such person.

Flexible Fuel Vehicle means any motor vehicle engineered and designed to be operated

on any mixture of two or more different fuels.

Law Enforcement Motor Vehicle means any vehicle which is primarily operated by a

civilian or military police officer or sheriff, or by personnel of the Federal Bureau of

Investigation, the Drug Enforcement Administration, or other agencies of the Federal

government, or by State highway patrols, municipal law enforcement, or other similar

enforcement agencies, and which is used for the purpose of law enforcement activities

including, but not limited to, chase, apprehension, surveillance, or patrol of people

engaged in or potentially engaged in unlawful activities. 

Lease means the use and control of a motor vehicle for transportation purposes

pursuant to a rental contract or similar arrangement with a term of 120 days or

more.

Light Duty Motor Vehicle means a light duty truck or light duty vehicle, as such

terms are defined under section 216(7) of the Clean Air Act (42 U.S.C. §7550(7)),

having a gross vehicle weight rating of 8,500 pounds or less, prior to any aftermarket conversion.

Model Year means the period from September 1 of the previous calendar year through

August 31.

Motor Vehicle means a self-propelled vehicle, other than a non-road vehicle,

designed for transporting persons or property on a street or highway.

Non-road Vehicle means a vehicle used principally for industrial, farming or

commercial use, for rail transportation, at an airport, for marine purposes and

other vehicles not licensed for on-road use.

Normal Requirements and Practices means the operating business practices

and required conditions under which the principal business of the Covered Person

operates.
Page 41 (Guide to 10 CFR Part 490)

Original Equipment Manufacturer Vehicle means a vehicle engineered,

designed, produced and warranted by an original equipment manufacturer.

Person means any individual, partnership, corporation, voluntary association, joint

stock company, business trust, Governmental entity, or other legal entity in the

United States except United States Government entities.

Principal Business means the sales-related activity that produces the greatest

revenue.

The Rule is 10 CFR Part 490 in the Code of Federal Regulations.

State means any of the 50 States, the District of Columbia, the Commonwealth of

Puerto Rico, and any other territory or possession of the United States.

Public Building means any closed structure owned, leased, or controlled by a

State, or any instrumentality of a State.

Substantial Portion means that at least 30 percent of the annual gross revenue

of a Covered Person is derived from the sale of alternative fuels.

Substantially Engaged means that a Covered Person, or affiliate, division, or

other business unit thereof, regularly derives sales-related gross revenue from an

alternative fuels business.

Used Primarily means that a majority of a vehicle's total annual miles are

accumulated within a covered metropolitan or consolidated statistical area.
Page 42 (Guide to 10 CFR Part 490)

GLOSSARY OF ACRONYMS

AFV Alternative Fueled Vehicle

MSA Metropolitan Statistical Area

CMSA Consolidated Metropolitan

Statistical Area

DOE U.S. Department of Energy

DOT U.S. Department of

Transportation

EE Energy Efficiency and Renewable

Energy

EPACT Energy Policy Act of 1992

EV Electric Vehicle

LDV Light Duty Vehicle

OTT Office of Transportation

Technologies

RFG Reformulated Gasoline
Page 43 (Guide to 10 CFR Part 490)

INDEX

Acquire (2, 4, 7, 9, 17, 20-23, 27, 37)

Act (1-2, 13, 37, 39, 40, 42)

Affiliate (37, 41)

After-Market Converted Vehicle (37)

AFV (5, 8, 9, 11, 13, 17, 21, 22, 25, 27, 28, 42)

Alternative Fuel (1, 2, 1, 2, 5, 10, 11, 14-16, 18-25, 27, 28, 30, 32, 33, 37, 39)

ALTERNATIVE FUEL PROVIDERS (15)

COVERAGE AND GENERAL REQUIREMENTS FOR FUEL PROVIDERS (16)

Decision Tree (19)

ELECTRIC VEHICLE OPTION FOR ELECTRIC UTILITIES (23)

EXEMPTIONS FROM ACQUISITION REQUIREMENTS (23)

GENERAL REPORTING REQUIREMENTS FOR FUEL PROVIDERS (24)

Alternative Fueled Vehicle (1, 4, 8, 13, 22, 26, 27, 37, 42)

ALTERNATIVE FUELED VEHICLE CREDIT PROGRAM (26)

1. How are credits earned under the Credit Program? (27)

2. How will AFV credits count? (27)

3. May credits be transferred? (27)

4. What types of transfer are OK? (27)

5. How must credit activities be reported? (28)

6. What must a Credit Activity Report include? (28)

7. How will credits be accounted for? (28)

Alternative Fuels Business (21, 37, 41)

ALTERNATIVE STATE PLANS (12)

1. What must be written into an optional ALTERNATIVE STATE PLAN? (13)

2. What types of AFV acquisitions will satisfy an opt. ALTERNATIVE STATE PLAN? (13)

3. When should a State submit its optional ALTERNATIVE STATE PLAN? (14)

4. Where does a State submit its optional ALTERNATIVE STATE PLAN? (14)

5. How are opt. ALTERN. STATE PLANS approved, and how long does it take? (14)

6. How does a State proceed after submission of its opt. ALTERN. STATE PLAN? (14)

7. May a State ever modify an already-approved opt. ALTERNATIVE STATE PLAN? (14)

8. What if an optional ALTERNATIVE STATE PLAN is not approved? (14)

9. Must States monitor implementation by opt. ALTERN. STATE PLAN participants? (14)

APPENDIX (31)

ADDITIONAL SOURCES OF INFORMATION ABOUT DOE’s ALTERNATIVE FUEL

TRANSPORTATION PROGRAM (33)

ADDRESSES RELATED TO COMPLIANCE (32)

DEFINITIONS (37)

GLOSSARY OF ACRONYMS (42)

METROPOLITAN STATISTICAL AREAS (MSAs) and CONSOLIDATED METROPOLITAN

STATISTICAL PROGRAMS (CMSAs) (34)

 Assistant Secretary (37)

Automobile (37, 39)

Business Unit (38, 41)

Centrally Fueled / Capable of Being Centrally Fueled (38)

CMSA (4, 17, 34-36, 42)

Control (5, 8, 16, 17, 21, 37-40)

COVERAGE AND GENERAL REQUIREMENTS FOR FUEL PROVIDERS (16)
Page 44 (Guide to 10 CFR Part 490)

 1. The Alternative Fuel Transportation Program applies only to ALTERNATIVE fuel

providers. Are you (or is any “business unit” under your control) an

ALTERNATIVE fuel provider? (16)

 2. If I am an “Alternative Fuel Provider,” according to #1, how do I determine whether

I’m a “COVERED PERSON” who must acquire Alternative Fueled Vehicles

(AFVs)? (17)

 3. What vehicles are counted in calculations? (17)

 4. What types of LDVs are NOT COUNTED toward the acquisition requirements? (17)

 5. What vehicles are considered to be "Centrally Fueled or Capable of Being Centrally

Fueled? (18)

 6. What acquisition percentages are required for covered alt. fuel providers? (20)

 7. How does a covered alt. fuel provider calculate fleet acquisition requirements? (20)

 8. Will Municipal gas and electric utilities be subject to any future municipal fleet

acquisition requirments imposed by regulation? (20)

 9. What is a “Holding Company?” (20)

10. How does a holding company which deals in the alternative fuels business comply

with this program? (21)

11. What if an alternative fuel provider is newly classified as a Covered Person after

Model Year 1997? (21)

12. What acquisitions satisfy program requirements? (21)

13. May a covered alternative fuel provider count converted LDVs that it already owns or

controls to satisfy acquisition requirements? (21)

14. Is a covered alternative fuel provider (covered person) required to obtain

CONVERTED vehicles? (21)

15. May a covered alternative fuel provider acquire vehicles that appear on the list of

EXCLUDED vehicles to satisfy acquisition requirements? (22)

16. May a covered alternative fuel provider acquire MEDIUM or HEAVY DUTY AFVs to

satisfy acquisition requirements? (22)

17. What alternative fuels must an alternative fueled vehicle (AFV) be able to operate on

in order to satisfy acquisition requirments? (22)

18. Must a covered alternative fuel provider always use alternative fuels in its AFVs? (23)

COVERAGE AND GENERAL REQUIREMENTS FOR STATES (4)

 1. How does a State government or State agency determine if it is covered? (4)

 2. Must a covered State government comply with program (alternative fueled vehicle)

acquisition requirements as a whole State, or may it choose to comply as

individual agencies? (4)

 3. If a covered State chooses to allow its State agency fleet operators to comply

separately, and an agency fleet does not meet size guidelines according to #1, is

it exempt from acquisition requirements? (4)

 4. Must agencies who join each other for calculation purposes make their acquisitions

together as well? (4)

 5. What vehicles are counted in calculations? (5)

 6. Which types of vehicles are NOT COUNTED when calculating the acquisition

requirements (5)

 7. Which LIGHT DUTY VEHICLES (LDVs) are considered to be “Centrally Fueled or

Capable of Being Centrally Fueled?” (5)

 8. What acquisition percentages apply to State fleets? (7)

 9. Exactly how does a State or St. agency calculate fleet acquisition requirements? (7)
Page 45 (Guide to 10 CFR Part 490)

10. What if a State or State agency becomes a fleet operator, according to guidelines

(see #1) after model year 1997? (7)

11. What forms of acquisition satisfy requirements? (7)

12. May I count converted LDVs that I already own or control to satisfy acquisition

requirements? (8)

13. Which alternative fuels must an Alternative Fueled Vehicle (AFV) be able to operate

on in order to satisfy acquisition requirements? (8)

14. May a State or State agency acquire AFVs that are on the list of EXCLUDED

vehicles to satisfy ACQUISITION requirements? (9)

15. Are States required to obtain CONVERTED vehicles? (9)

16. May a State or State agency acquire MEDIUM or HEAVY DUTY AFVs to satisfy

acquisition requirments? (9)

Covered Person (17, 21, 24, 38, 40, 41)

Dealer Demonstration Vehicle (39)

Dedicated Vehicle (37, 39)

Division (39, 41)

DOE (2, 4, 5, 10, 11, 14, 17, 18, 21, 23-25, 27, 28, 30, 32, 33, 37, 39, 42)

DOT (42)

Dual Fueled Vehicle (37, 39)

EE (10, 11, 14, 24, 25, 27, 28, 30, 32, 42)

Electric Motor Vehicle (39)

ELECTRIC VEHICLE OPTION FOR ELECTRIC UTILITIES (23)

 1. May an electric utility delay acquisitions? (23)

 2. What are the acquisition requirements for elec. ut. that chose the delay option? (23)

 3. Is the electric utility option available for a combination utility? (23)

Electric-hybrid Vehicle (39)

Emergency Motor Vehicle (39)

ENFORCEMENT (30)

 1. Are These Requirements Enforceable? (30)

 2. If I violate the requirements of the program, what penalties might be incurred? (30)

 3. Will I be given notice of DOE’s intention to bring an enforcement action? (30)

EPACT (1, 2, 8, 22, 27, 30, 42)

EV (42)

EXECUTIVE SUMMARY (2)

EXEMPTIONS FROM ACQUISITION REQUIREMENTS (For States) (9)

 1. What if suitable alternative fuels or AFVs are not available? (9)

 2. What if additional costs associated with AFVs poses unreasonable hardship for a

State? (9)

 3. How do I apply for an exemption? (10)

 4. When may I apply for an exemption? (10)

 5. How long will an exemption remain in effect? (10)

 6. How long must I wait to find out whether or not an exemption has been granted? (10)

 7. May I appeal if my exemption is denied? (10)

EXEMPTIONS FROM ACQUISITION REQUIREMENTS (For Fuel Providers) (23)

 1. What if Suitable Alternative Fuels or AFVs Are Not Available? (23)

 2. How are exemption requests to be submitted? (24)

 3. When may a covered fuel provider submit an exemption request? (24)

 4. How long will an exemption remain in effect? (24)
Page 46 (Guide to 10 CFR Part 490)

 5. How long must a fuel provider wait to find out whether or not an exemption has been

granted? (24)

 6. May a covered fuel provider (covered person) appeal a denial of its request for an

exemption? (24)

Fleet (1, 4, 5, 7, 10, 11, 13, 18, 20, 23, 27, 28, 38, 39)

Flexible Fuel Vehicle (37, 39, 40)

GENERAL REPORTING REQUIREMENTS FOR STATES (10)

 1. How is compliance to be reported? (10)

 2. Will a form be provided for the annual report? (10)

 3. When does a State or State agency file an annual report? (10)

 4. Who files an annual report? (10)

 5. What information is to be included in the annual report? (11)

 6. Where must annual reports be sent? (11)

 7. How long must records be kept? (11)

GENERAL REPORTING REQUIREMENTS FOR FUEL PROVIDERS (24)

 1. How is compliance to be reported to DOE? (24)

 2. What Information is to be included in the annual report? (24)

 3. Where must annual reports be sent? (25)

 4. How long must records be kept? (25)

INDEX (43)

INTERPRETIVE RULINGS and ENFORCEMENT (29)

ENFORCEMENT (30)

REQUESTS FOR INTERPRETIVE RULING (30)

Law Enforcement Motor Vehicle (40)

LDV (5, 7, 8, 17, 21, 42)

Lease (2, 7, 8, 17, 28, 37, 39, 40)

Light Duty Motor Vehicle (40)

Model Year (7, 9-11, 13, 14, 20-25, 27, 28, 40)

Motor Vehicle (5, 17, 37, 39, 40)

MSA (4, 17, 34-36, 42)

Non-road Vehicle (40)

Normal Requirements and Practices (40)

Original Equipment Manufacturer Vehicle (37, 41)

OTT (42)

Person (13, 17, 21, 24, 30, 37-41)

Principal Business (41)

Public Building (41)

REQUESTS FOR INTERPRETIVE RULING (30)

RFG (8, 22, 42)

Rule (7, 8, 14, 21, 30, 33, 37, 41)

State (1, 1-14, 27, 28, 40, 41)

STATE GOVERNMENT FLEETS (3)

COVERAGE AND GENERAL REQUIREMENTS FOR STATES (4)

Decision Tree (6)

EXEMPTIONS FROM ACQUISITION REQUIREMENTS (9)

GENERAL REPORTING REQUIREMENTS FOR STATES (10)

Substantial Portion (41)

Substantially Engaged (21, 41)

Used Primarily (4, 17, 38, 39, 41)
Page 47 (Guide to 10 CFR Part 490)