```

[Federal Register Volume 77, Number 48 (Monday, March 12, 2012)]
[Proposed Rules]
[Pages 14482-14490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5876]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / 
Proposed Rules

[[Page 14482]]

DEPARTMENT OF ENERGY

10 CFR Part 438

RIN 1904-AB98

Petroleum Reduction and Alternative Fuel Consumption Requirements 
for Federal Fleets

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of 
Energy.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Department of Energy (DOE) today publishes a proposed rule 
to implement section 142 of the Energy Independence and Security Act of 
2007, which amended the Energy Policy and Conservation Act and directed 
the Secretary of Energy to issue implementing regulations for a 
statutorily-required reduction in petroleum consumption and increase in 
alternative fuel consumption for Federal fleets.

DATES: Public comment on this proposed rule will be accepted until 
April 11, 2012.

ADDRESSES: You may submit comments, identified by RIN 1904-AB98, by any 
of the following methods:
    1. Federal e-Rulemaking Portal: http://www.regulations.gov. Follow 
the instructions for submitting comments.
    2. Email to EISA_142_Comments@ee.doe.gov. Include RIN 1904-AB98 
in the subject line of the email. Please include the full body of your 
comments in the text of the message or as an attachment.
    3. Mail: Address written comments to Cyrus Nasseri, U.S. Department 
of Energy, Office of Energy Efficiency and Renewable Energy, Federal 
Energy Management Program (EE-2L), 1000 Independence Avenue SW., 
Washington, DC 20585-0121.
    Due to potential delays in DOE's receipt and processing of mail 
sent through the U.S. Postal Service, we encourage respondents to 
submit comments electronically to ensure timely receipt.
    This notice of proposed rulemaking and any comments that DOE 
receives will be made available on the Federal Energy Management 
Program's Federal Fleet Management Web site at http://www1.eere.energy.gov/femp/about/fleet_mgmt.html.

FOR FURTHER INFORMATION CONTACT: Cyrus Nasseri, U.S. Department of 
Energy, Office of Energy Efficiency and Renewable Energy, Federal 
Energy Management Program (EE-2L), 1000 Independence Avenue SW., 
Washington, DC 20585-0121; cyrus.nasseri@ee.doe.gov. For legal issues, 
contact: Michael Jensen, U.S. Department of Energy, Office of the 
General Counsel, Forrestal Building, GC-71, 1000 Independence Avenue 
SW., Washington, DC 20585; michael.jensen@hq.doe.gov.

SUPPLEMENTARY INFORMATION: 

I. Introduction and Background
II. Applicability
III. Discussion
IV. Public Comment Procedures
V. Regulatory Review

I. Introduction and Background

    The Energy Independence and Security Act of 2007 (EISA, Pub. L. 
110-140) was signed into law on December 19, 2007. Section 142 of EISA 
modified Part J of title III of the Energy Policy and Conservation Act 
(EPCA, Pub. L. 94-163) by adding a new section 400FF entitled ``Federal 
Fleet Conservation Requirements.'' Section 400FF establishes mandatory 
reductions in annual petroleum consumption and mandatory increases in 
annual alternative fuel consumption for Federal fleets and directs the 
Secretary of Energy (Secretary) to issue implementing regulations. The 
purpose of this notice is to present the U.S. Department of Energy's 
(DOE) proposed regulations pursuant to this statutory directive.
    New section 400FF(a)(1) provides that the Secretary shall issue 
regulations for Federal fleets subject to the alternative fueled 
vehicle (AFV) acquisition requirements of section 400AA of EPCA to 
require that, beginning in fiscal year (FY) 2010, Federal fleets 
``shall reduce petroleum consumption and increase alternative fuel 
consumption each year by an amount necessary to meet the goals 
described in paragraph (2).'' Section 400FF(a)(2) provides, pursuant to 
paragraph (1), not later than October 1, 2015, and for each year 
thereafter, Federal fleets ``shall achieve at least a 20 percent 
reduction in annual petroleum consumption and a 10 percent increase in 
annual alternative fuel consumption, as calculated from the baseline 
established by the Secretary for [FY] 2005.'' Section 400FF(a)(3) 
requires the regulations to include ``interim numeric milestones'' to 
assess annual progress towards accomplishing the goals described in 
section 400FF(a)(2) and an annual Federal fleet reporting requirement 
``on progress towards meeting each of the milestones and the 2015 
goals.'' Section 400FF(b) sets forth requirements for the development 
and implementation of Federal fleet plans ``to meet the required 
petroleum reduction levels and the alternative fuel consumption 
increases, including the milestones specified by the Secretary.''
    Section 142 of EISA addresses similar matters as the fleet 
provisions in Executive Order (E.O.) 13423, ``Strengthening Federal 
Environmental, Energy, and Transportation Management,'' 72 FR 3919 
(Jan. 26, 2007), and E.O. 13514, ``Federal Leadership in Environmental, 
Energy, and Economic Performance,'' 74 FR 52117 (Oct. 8, 2009). 
However, there are notable differences between both Executive Orders 
and EISA section 142. Section 2(g) of E.O. 13423 provides, in part, 
that if a fleet consists of at least 20 motor vehicles, the fleet must 
reduce its ``total consumption of petroleum products by 2 percent 
annually through the end of [FY] 2015,'' relative to a baseline of FY 
2005. Section 2(a)(iii)(C) of E.O. 13514 extends the petroleum 
reduction requirements set forth in E.O. 13423 through the end of FY 
2020. Section 2(g) of E.O. 13423 also provides, in part, that if a 
fleet consists of at least 20 motor vehicles, the fleet must increase 
``the total fuel consumption that is non-petroleum-based by 10 percent 
annually'' \1\ relative to its FY 2005 baseline level.
---------------------------------------------------------------------------

    \1\ The Council on Environmental Quality (CEQ) has issued 
``Instructions for Implementing Executive Order 13423'' (CEQ 
Instructions). See 72 FR 33504 (June 18, 2007) (also available at  
http://www.fedcenter.gov/programs/eo13423/). Among other things, the 
CEQ Instructions make clear that the definition of the term ``non-
petroleum-based fuel'' is consistent with the definition of the term 
``alternative fuel,'' as presented in section 301 of the Energy 
Policy Act of 1992.
---------------------------------------------------------------------------

    The language set forth in E.O. 13423 and E.O. 13514 regarding 
requirements

[[Page 14483]]

for fleet petroleum reductions and alternative fuel increases is not 
identical to the language contained in EISA section 142. Regarding 
annual fleet alternative fuel consumption, the Council on Environmental 
Quality's ``Instructions for Implementing Executive Order 13423'' (CEQ 
Instructions) provides that the requirement in E.O. 13423 to increase 
``the total fuel consumption that is non-petroleum-based by 10 percent 
annually'' ``is measured relative to the prior year's alternative fuel 
usage levels.'' The language in EISA, however, requires at least a 10 
percent increase in annual alternative fuel consumption as measured 
relative to a FY 2005 baseline. Accordingly, pursuant to this proposed 
rule, for each FY after FY 2015, each Federal fleet would be required 
to achieve an increase in its annual alternative fuel consumption that 
is at least 10 percent greater than its FY 2005 alternative fuel 
consumption level. Regarding annual Federal fleet petroleum consumption 
reductions, the proposed regulations are complementary and consistent 
with those of E.O. 13514. DOE's positions on these matters are 
discussed in detail in section III of the SUPPLEMENTARY INFORMATION to 
this proposed rule.
    On May 24, 2011, the President issued a memorandum to provide 
guidance to Federal agencies to help achieve the Administration's 
Federal fleet performance goals and to ensure that agencies are in 
compliance with Executive Order 13514. See Presidential Memorandum, 
Federal Fleet Performance, available at http://www.whitehouse.gov/the-press-office/2011/05/24/presidential-memorandum-federal-fleet-performance. The Presidential Memorandum directs that by December 31, 
2015, all new light duty vehicles leased or purchased by agencies must 
be alternative fueled vehicles, as that term is defined in the 
memorandum. The Presidential Memorandum also directs the U.S. General 
Services Administration (GSA) to develop a methodology to determine 
optimal fleet size and composition and instructs agencies to use this 
methodology to determine fleet inventory targets and to prepare fleet 
management plans to achieve these targets no later than December 31, 
2015. Furthermore, the Presidential Memorandum recognizes the need to 
acquire advanced vehicles and to decrease Federal fleet petroleum 
consumption in a cost-effective manner. Regarding Federal fleet 
petroleum consumption reductions, the proposed regulations are 
complementary and consistent with the requirements set forth in the May 
2011 Presidential Memorandum. As with Executive Order 13514, the 
Presidential Memorandum complements the statutory requirements 
established in section 142 of EISA and the implementing regulations 
proposed in this document.
    Today's proposed rule would establish regulations implementing the 
requirements for Federal fleet reductions in petroleum and increases in 
alternative fuel. In addition to section 2(g) of E.O. 13423, section 
2(a)(iii)(C) of E.O. 13514, and the May 2011 Presidential Memorandum, 
fleets also would be subject to section 303 of the Energy Policy Act of 
1992 (Pub. L. 102-486), as amended by section 141 of EISA, section 
400AA(a) of EPCA, as amended by section 701 of the Energy Policy Act of 
2005 (Pub. L. 109-58), and sections 246 and 526 of EISA, which impose 
certain requirements related to Federal fleet vehicle emissions, 
Federal fleet fueling centers, the procurement and acquisition of AFVs, 
and the use of alternative fuels by dual fueled vehicles.

II. Applicability

    As specified in section 400FF of EPCA, today's proposed rule would 
apply to those ``Federal fleets subject to section 400AA'' of EPCA. 42 
U.S.C. 6374e(a). However, neither section 400AA nor section 400FF of 
EPCA contains a definition of the term ``Federal fleet.'' Accordingly, 
DOE proposes to define the term ``Federal fleet'' to reconcile the 
applicability of the requirements of section 400AA of EPCA, E.O. 13423, 
E.O. 13514, and the May 2011 Presidential Memorandum.
    Both E.O. 13423 and E.O. 13514 establish requirements for agency 
fleets, defining the term ``agency'' to mean ``an executive agency as 
defined in section 105 of title 5, United States Code, excluding the 
Government Accountability Office.'' 72 FR at 3922; 74 FR at 52125. The 
May 2011 Presidential Memorandum also defines the term ``agency'' 
consistent with both Executive Orders. Moreover, both E.O. 13423 and 
E.O. 13514 apply to agencies operating fleets ``of at least 20 motor 
vehicles.'' 72 FR at 3919; 74 FR at 52118. Section 400AA of EPCA 
establishes AFV acquisition requirements for ``vehicles acquired 
annually for use by the Federal Government.'' 42 U.S.C. 6374(a)(1). The 
AFV acquisition requirements under section 400AA of EPCA apply both to 
vehicles acquired by ``agencies'' and to certain vehicles acquired by 
the U.S. Postal Service. See 42 U.S.C. 6374(a)(3)(B)).
    Upon consideration of the requirements of section 400AA of EPCA, 
E.O. 13423, E.O. 13514, and the May 2011 Presidential Memorandum, DOE 
proposes to define the term ``Federal fleet'' to mean 20 or more 
Federally-operated motor vehicles operated within the United States. 
The term ``Federally-operated'' would include motor vehicles that are 
operated by an ``Executive agency'' as that term is defined in section 
105 of title 5, United States Code; however, for consistency with the 
requirements of 400AA of EPCA, E.O. 13423, E.O. 13514, and the May 2011 
Presidential Memorandum, the term ``Federally-operated'' would exclude 
the Government Accountability Office and would include the U.S. Postal 
Service. DOE further proposes that the term ``Federal fleet'' would 
include Federally-operated motor vehicles and motor vehicles operated 
by contractors or sub-contractors to the Federal Government. However, 
the term ``Federal fleet'' would not include those motor vehicles 
defined under proposed 10 CFR 438.2(j) as ``exempt vehicles'' and 
certain motor vehicles that are both contractor- or sub-contractor-
owned and operating under Federal contract.
    Under the proposed rule, a determination of annual petroleum and 
alternative fuel consumption levels would be required for all Federal 
fleet motor vehicles. The term ``alternative fuel consumption,'' as 
defined in proposed 10 CFR 438.2(d), also would include the alternative 
fuel used in exempt vehicles as well as the alternative fuel used in 
low-speed electric vehicles (LSEVs) \2\ regardless of whether the LSEV 
is intended for use as an on-road or non-road vehicle.
---------------------------------------------------------------------------

    \2\ The definition of the term ``low-speed electric vehicle,'' 
as used throughout this proposed rule, is synonymous with the 
definition of the term ``neighborhood electric vehicles'' referenced 
in section 142 of EISA.
---------------------------------------------------------------------------

    The inclusion in the definition of the term ``alternative fuel 
consumption'' of alternative fuel used in LSEVs and exempt vehicles is 
consistent with the existing approach under E.O. 13423, and DOE 
believes such a definition would provide a strong incentive for Federal 
fleets to use alternative fuel to the maximum extent possible. 
Similarly, including in this definition the alternative fuel used in 
LSEVs would encourage the replacement of petroleum with alternative 
fuel. Under the proposed definition of ``petroleum consumption'' in 10 
CFR 438.2(v), though, petroleum used in exempt vehicles and LSEVs would 
not be included as part of a Federal fleet's ``petroleum consumption.'' 
Once again,

[[Page 14484]]

this approach is consistent with the extant approach under E.O. 13423.
    Under proposed 10 CFR 438.1(j)(2), law enforcement motor vehicles 
would be exempt from the proposed requirements on Federal fleets. 
Proposed 10 CFR 438.1(o) defines the term ``law enforcement motor 
vehicle'' as ``any motor vehicle that engages in, or is equipped to 
engage in, protective, high-speed, or law enforcement activities.'' 
However, in accordance with the May 2011 Presidential Memorandum on 
Federal fleet performance, GSA has been directed to issue guidance on 
the applicability and implementation of AFV requirements on law 
enforcement vehicles. DOE will consider all future GSA guidance in 
development and preparation of the final rule.
    While certain vehicles would be exempt from inclusion as part of a 
Federal fleet, it is important to recognize that the statutory 
requirements would not apply to individual vehicles. Instead, the 
petroleum reduction and alternative fuel use requirements are fleet-
level requirements.
    Under proposed 10 CFR 438.1(b), Federal motor vehicles not subject 
to Part 438 because they do not meet the definition of the term 
``Federal fleet'' under proposed 10 CFR 438.2(l) nevertheless would be 
encouraged to comply voluntarily with the regulations.

III. Discussion

    Pursuant to Table III.1 and the discussion contained in this 
section, each Federal fleet subject to this proposed rule would be 
subject to a statutorily-required reduction in petroleum consumption 
and increase in alternative fuel consumption.
---------------------------------------------------------------------------

    \3\ Table III.1 does not contain an exhaustive list of petroleum 
consumption and alternative fuel consumption requirements for all 
Federal fleets. Rather, Table III.1 includes those Federal fleets 
that comprised 99% of the Federal Government's petroleum consumption 
in FY 2005.

        Table III.1--Federal Fleet Petroleum Reduction and Alternative Fuel Consumption Requirements \3\
----------------------------------------------------------------------------------------------------------------
                                                          Petroleum                     Alternative fuel
                                             -------------------------------------------------------------------
                                                                                                     FY 2015
                                                  FY 2005          FY 2015          FY 2005        alternative
                   Agency                        petroleum        petroleum       alternative          fuel
                                                consumption      consumption          fuel         consumption
                                              baseline  (GGE)    requirement      consumption      requirement
                                                    \a\             (GGE)       baseline  (GGE)       (GGE)
----------------------------------------------------------------------------------------------------------------
U.S. Postal Service.........................      144,801,193      115,840,954    \b\ 1,051,106        1,156,217
Department of Defense.......................       79,898,347       63,918,678    \b\ 2,323,322        2,555,654
Department of the Interior..................       18,734,809       14,987,847      \d\ 500,000          550,000
Department of Agriculture...................       18,473,766       14,779,013      \d\ 500,000          550,000
Department of Veterans Affairs..............        8,729,032        6,983,226      \c\ 438,282          482,111
Department of Energy........................        7,401,460        5,921,168      \b\ 624,704          687,174
U.S. Army Corps of Engineers................        4,933,502        3,946,802      \c\ 246,944          271,639
Department of Homeland Security.............        3,801,408        3,041,126      \b\ 222,648          244,913
Department of Transportation................        3,660,906        2,928,725      \c\ 186,458          205,104
Department of Labor.........................        3,318,384        2,654,707      \c\ 168,628          185,491
Tennessee Valley Authority..................        2,929,403        2,343,522      \c\ 146,474          161,121
Department of Health and Human Services.....        2,043,622        1,634,898      \c\ 103,463          113,809
National Aeronautics and Space                      1,277,165        1,021,732      \b\ 148,723          163,595
 Administration.............................
Department of Commerce......................        1,211,082          968,866       \c\ 60,609           66,669
Department of Justice.......................          599,643          479,714      \b\ 113,462          124,808
General Services Administration.............          573,245          458,596       \c\ 30,171           33,188
----------------------------------------------------------------------------------------------------------------
\a\ GGE is a gasoline gallon equivalent, or the volume of fuel having the same energy content as a gallon of
  gasoline.
\b\ FY 2005 alternative fuel consumption baseline established per 10 CFR 438.102(b)(1): Actual FY 2005
  alternative fuel consumption.
\c\ FY 2005 alternative fuel consumption baseline established per 10 CFR 438.102(b)(2)(a): 5% of FY 2005 total
  fuel consumption.
\d\ FY 2005 alternative fuel consumption baseline established per 10 CFR 438.102(b)(2)(b): 500,000 GGE.

Petroleum Reduction Requirement

    Consistent with section 142 of EISA, beginning in FY 2010, each 
Federal fleet would be required to achieve a reduction in its annual 
petroleum consumption by an amount necessary to meet the October 1, 
2015, requirement of at least a 20 percent lower annual petroleum 
consumption as relative to its FY 2005 baseline level. For FYs 2010 
through 2014, proposed 10 CFR 438.103(a) sets forth non-mandatory 
interim milestones to assess Federal fleet progress in meeting the FY 
2015 annual petroleum reduction requirements. Although these interim 
milestones are non-mandatory, the milestones are consistent with the 
petroleum reduction requirements set forth in E.O. 13514.
    As required under section 142 of EISA and as set forth under 
proposed 10 CFR 438.101(a), Federal fleets must achieve at least a 20 
percent reduction in annual petroleum consumption ``not later than 
October 1, 2015, and for each year thereafter''; i.e., by October 1, 
2015, each Federal fleet must achieve at least a 20 percent reduction 
in its annual petroleum consumption as calculated from the applicable 
FY 2005 baseline. That is, by the end of FY 2015 and for each year 
thereafter, annual Federal fleet petroleum consumption must be equal to 
or less than 80 percent of the amount that Federal fleet consumed in FY 
2005. This interpretation is complementary of the requirement set forth 
in E.O. 13514 that each Federal fleet reduce its ``total consumption of 
petroleum products by a minimum or 2 percent annually through the end 
of [FY] 2020, relative to a baseline of [FY] 2005.'' Accordingly, 
compliance with E.O. 13514 would result in full compliance with the 
petroleum reduction requirements set forth in EISA.

Alternative Fuel Use Requirement

    As required under section 142 of EISA, beginning in FY 2010, each 
Federal fleet would be required to achieve an increase in its annual 
alternative fuel consumption by an amount necessary to meet the October 
1,

[[Page 14485]]

2015, requirement established by Congress in EISA of at least a 10 
percent increase in annual alternative fuel consumption relative to FY 
2005 baseline levels. For FYs 2010 through 2014, proposed 10 CFR 
438.103(b) sets forth non-mandatory interim milestones to assess 
Federal fleet progress in meeting the FY 2015 annual alternative fuel 
consumption requirements.
    As noted above, the language set forth in E.O. 13423 and E.O. 13514 
regarding requirements for Federal fleet petroleum consumption 
reductions and alternative fuel consumption increases is not identical 
to the language contained in EISA section 142. EISA provides that each 
Federal fleet shall achieve at least ``a 10 percent increase in annual 
alternative fuel consumption'' whereas E.O. 13423 provides that each 
fleet must increase ``the total fuel consumption that is non-petroleum-
based by 10 percent annually.'' The CEQ Instructions provide that the 
requirement in E.O. 13423 that fleets increase alternative fuel usage 
``by 10 percent annually'' is ``measured relative to the prior year's 
alternative fuel usage levels.'' As required under section 142 of EISA 
and as set forth in proposed 10 CFR 438.101(b), however, each Federal 
fleet by October 1, 2015, would be required to achieve at least a 10 
percent increase in its annual alternative fuel consumption as 
calculated from the applicable FY 2005 baseline. Therefore, by the end 
of FY 2015 and for each year thereafter, annual Federal fleet 
alternative fuel consumption would be required to be equal to or 
greater than 110 percent of the amount that Federal fleet consumed in 
FY 2005. Accordingly, consistent with the approach for calculating 
reductions in annual petroleum consumption under proposed 10 CFR 
438.101(a), increases in annual Federal fleet alternative fuel 
consumption under proposed 10 CFR 438.101(b) would be calculated as 
measured relative to its FY 2005 baseline.
    For purposes of the proposed rule, DOE believes that requiring 
increases in annual alternative fuel consumption levels potentially 
would lead to required levels of alternative fuel consumption that far 
exceed the current total of fuel use without regard to actual demand 
levels. Therefore, DOE proposes that ``not later than October 1, 2015, 
and for each year thereafter,'' each Federal fleet would be required to 
ensure that its annual alternative fuel consumption is at least 10 
percent greater than its FY 2005 alternative fuel consumption level. 
DOE notes that the EISA section 142 alternative fuel consumption 
requirement and the proposed non-mandatory interim milestones are not 
as stringent as the annual alternative fuel usage requirements set 
forth in E.O. 13423; however, compliance with E.O. 13423 would result 
in full compliance with the alternative fuel requirements set forth in 
EISA.

Milestones and Annual Reporting

    EISA section 142 requires that DOE establish interim numeric 
milestones to assess annual progress towards accomplishing Federal 
fleet requirements for petroleum reduction and alternative fuel use. 
EISA further requires the submission of annual Federal fleet reports in 
order to measure progress towards meeting each of the milestones and 
the FY 2015 requirements.
    Under proposed 10 CFR 438.101, not later than October 1, 2015, the 
annual petroleum consumption for each Federal fleet must be equal to or 
less than 80 percent of the Federal fleet's FY 2005 baseline level, and 
the annual alternative fuel consumption for each Federal fleet must be 
equal to or greater than 110 percent of the Federal fleet's FY 2005 
baseline level. As explained above, proposed 10 CFR 438.103(a) and (b) 
set forth non-mandatory interim milestones for each Federal fleet to 
reduce its annual petroleum consumption and to increase its annual 
alternative fuel consumption between FYs 2010 and 2014.
    Progress towards meeting these interim milestones would be required 
to be reported annually pursuant to proposed 10 CFR 438.104. Under this 
section, DOE would require submission of annual reports to DOE 
containing information on the petroleum and alternative fuel used in 
Federal fleet motor vehicles. This report also would include the 
alternative fuel used in exempt vehicles and LSEVs. All reports under 
this section would be required to be submitted through the Federal 
Automotive Statistical Tool Web-based reporting system (FAST) (https://fastweb.inel.gov/) no later than December 15 of each calendar year.

Written Plan

    Consistent with section 142 of EISA, proposed 10 CFR 438.201 
requires the development and submission of a written plan, including 
implementation dates, to meet the required Federal fleet petroleum 
reduction and alternative fuel increase levels under the proposed rule. 
This written plan would contain similar information as the fleet 
management plan that agencies are directed to submit to GSA under the 
May 2011 Presidential Memorandum. Accordingly, DOE has attempted to 
identify areas in which compliance with the proposed requirements under 
10 CFR 438.201 also would be useful in satisfying the requirements of 
the Presidential Memorandum. Under proposed 10 CFR 438.201, the written 
plan would be required to:
    1. Identify the specific measures the Federal fleet would use to 
meet the petroleum reduction and alternative fuel consumption 
requirements and interim milestones set forth in proposed 10 CFR 
438.101 and 438.103. The plan would include some or all of the 
following petroleum reduction measures: the Federal fleet's use of 
alternative fuels; the acquisition of dual fueled vehicles; the 
acquisition of vehicles with higher fuel economy, including but not 
limited to hybrid electric vehicles, LSEVs, electric vehicles, and 
plug-in hybrid electric vehicles if such vehicles are commercially 
available; the substitution of light trucks with cars; an increase in 
vehicle load factors; a decrease in vehicle miles traveled; a decrease 
in fleet size; and other measures.
    2. Quantify the reductions in petroleum consumption and increases 
in alternative fuel consumption projected to be achieved by each 
measure for each FY. For each specific measure identified above, the 
plan would be required to contain estimates, for each FY, of the 
reduction in petroleum consumption or increase in alternative fuel 
consumption in both gasoline gallon equivalents (GGEs) and percentage 
increases or decreases from the Federal fleet's FY 2005 baseline level.
    3. Specify the date by which each measure in the plan will be 
implemented. For each measure identified above, the plan would be 
required to contain the estimated date when the measure would be fully 
implemented.
    4. Projecting the size and composition of the fleet by vehicle 
class and fuel type that corresponds with mission requirements. Similar 
to the direction under the Presidential Memorandum for agencies to 
determine their optimal fleet inventory, the plan would be required to 
contain an evaluation of minimum vehicle requirements needed to support 
mission needs at each fleet location and identify opportunities to 
eliminate vehicles that exceed requirements. In order to meet this 
requirement, Federal fleets could develop a vehicle acquisition and 
management plan to: (1) Acquire AFVs where alternative fuel is 
available; (2) increase overall Federal fleet fuel economy through the 
acquisition of smaller-sized vehicles

[[Page 14486]]

and/or hybrid, electric, or other advanced technology vehicles; and (3) 
ensure that the most fuel efficient vehicle is used for the required 
task. Federal fleets would be encouraged to use the GSA Vehicle 
Allocation Methodology for determining optimum fleet inventory in 
developing the written plan under proposed 10 CFR 438.201.
    5. Specify actions to ensure that AFVs are acquired and located 
where the appropriate alternative fuel is available. The plan would 
identify the specific actions Federal fleets would implement to ensure 
that AFVs are acquired and located where alternative fuel is available, 
including the identification of areas for future improvement of 
infrastructure to support AFVs in the Federal fleet.
    6. Projecting the use of alternative fuel by AFVs and LSEVs in each 
FY. The plan would be required to contain projections on the use of 
alternative fuel and existing fuel infrastructure by AFVs and LSEVs and 
plans for the installation of new alternative fuel infrastructure to 
support those alternative fuel use projections. The plan also would be 
required to address actions to reduce or eliminate the deployment of 
AFVs in locations where the appropriate alternative fuel is not 
available.
    Each written plan would require senior management approval, clearly 
assign responsibility for implementation, put forth assumptions made in 
developing projections, and address resource requirements necessary for 
success.

Petroleum and Alternative Fuel Consumption FY 2005 Baseline Values

    EISA section 142 directs the Secretary to establish FY 2005 Federal 
fleet petroleum consumption and alternative fuel consumption baseline 
values. As discussed above, beginning on October 1, 2015, the annual 
petroleum consumption for each Federal fleet would be equal to or less 
than 80 percent of that Federal fleet's FY 2005 baseline level, and the 
annual alternative fuel consumption for each Federal fleet would be 
equal to or greater than 110 percent of that Federal fleet's FY 2005 
baseline level. In the event that a Federal fleet was not in existence 
in FY 2005, DOE would take steps to establish reasonable baselines and 
would prorate the requirements based on the date that the Federal fleet 
was established.
    DOE initially has determined under the proposed rule that the 
petroleum consumption and alternative fuel consumption baseline values 
should be those reported for Federal fleets through FAST for FY 2005. 
DOE would encourage that this information be reviewed and, if it is 
found that any value is incorrect, contact DOE to request a correction. 
For example, a correction might be requested in the event that the 
Federal fleet's alternative fuel use value for FY 2005 submitted 
through FAST did not include the electricity used in the Federal 
fleet's LSEVs.
    Federal fleets with extremely low alternative fuel use would be 
subject to a proposed minimum alternative fuel baseline. The minimum 
baseline would be the greater of (1) the amount of alternative fuel 
consumed by that Federal fleet in FY 2005, expressed in GGEs, as 
reflected in FY 2005 FAST data, or (2) the lesser of (a) five percent 
of total Federal fleet vehicle fuel (petroleum and alternative fuel) 
consumption and (b) 500,000 GGEs. For example, if a Federal fleet 
reported using 1,400,000 gallons of petroleum and 600,000 GGEs of 
alternative fuel in its FY 2005 FAST data, that Federal fleet's FY 2005 
alternative fuel baseline level would be 600,000 GGEs, as 600,000 GGEs 
is the greater of (1) the amount of alternative fuel consumed by that 
Federal fleet in 2005 (600,000 GGEs) and (2) five percent of total 
vehicle consumption in FY 2005 (100,000 gallons, which is less than 
500,000 GGEs). However, if a Federal fleet reported using 1,950,000 
gallons of petroleum and 50,000 GGEs of alternative fuel in its FY 2005 
FAST data, that Federal fleet's FY 2005 baseline level would be 100,000 
GGEs, as 100,000 GGEs is the greater of (1) the amount of alternative 
fuel consumed by that Federal fleet in 2005 (50,000 GGEs) and (2) five 
percent of total vehicle consumption in FY 2005 (100,000 gallons, which 
is less than 500,000 GGEs).
    Using only actual FY 2005 levels as the baseline would require 
limited (in volume) increases in alternative fuel for Federal fleets 
with low FY 2005 alternative fuel usage and large (in volume) increases 
in alternative fuel for Federal fleets with high FY 2005 alternative 
fuel usage, thereby requiring less alternative fuel use by those 
Federal fleets with historically low alternative fuel usage. This 
approach is being taken to encourage those Federal fleets that have not 
been aggressive in substituting alternative fuel for petroleum to begin 
doing so and to bring these Federal fleets up to levels similar to 
other Federal fleets.

IV. Public Comment Procedures

    Interested persons are invited to participate in this proceeding by 
submitting data, views, or arguments. Written comments should be 
submitted to the address, and in the form, indicated in the ADDRESSES 
section of this notice of proposed rulemaking. To help DOE review the 
comments, interested persons are asked to refer to specific proposed 
rule provisions, if possible.
    If you submit information that you believe to be exempt by law from 
public disclosure, you should submit one complete copy, as well as one 
copy from which the information claimed to be exempt by law from public 
disclosure has been deleted. DOE is responsible for the final 
determination with regard to disclosure or nondisclosure of the 
information and for treating it accordingly under the DOE Freedom of 
Information Act regulations at 10 CFR 1004.11.

V. Regulatory Review

A. Executive Order 12866

    Today's proposed rule has been determined to be a ``significant 
regulatory action'' under section 3(f) of Executive Order 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993). 
Accordingly, this action was subject to review under that Executive 
Order by the Office of Information and Regulatory Affairs (OIRA) of the 
Office of Management and Budget (OMB).

B. National Environmental Policy Act

    DOE has determined that this proposed rule is covered by the 
categorical exclusion (CX) found in DOE's National Environmental Policy 
Act (NEPA) regulations at paragraph A7 of Appendix A to subpart D, 10 
CFR part 1021. The categorical exclusion in paragraph A7 (CX A7) 
encompasses the ``transfer, lease, disposition or acquisition of 
interests in personal property (e.g., equipment and materials) * * * if 
property use is to remain unchanged; i.e., the type and magnitude of 
impacts would remain essentially the same.'' DOE's proposed action in 
this rulemaking is limited to reflecting statutory standards and 
deadlines, establishing voluntary milestones, and collecting reports. 
These actions have almost no impact on the human environment. However, 
to the extent that DOE might be deemed to have some role in the 
agencies' proposals to change the composition of their federal fleets, 
DOE's proposed action would comprise the transfer, lease, disposition 
or acquisition of personal property (i.e., vehicles and related 
infrastructure) without changing vehicle use to an extent that results 
in significant impacts to the environment.

[[Page 14487]]

    DOE has experience with determining that CX A7 encompasses changes 
to the composition of fleets that are not under DOE's control. For 
example, DOE determined that a grant to the Texas Railroad Commission 
for the installation of propane refueling infrastructure and vehicle 
purchases was categorically excluded from further NEPA review under CX 
A7. See http://cxnepa.energy.gov/docs/002488.PDF. DOE made more than 
twenty additional CX determinations under CX A7 for Clean Cities grants 
to State and local governments for reducing petroleum consumption 
associated with their fleets. This past practice supports DOE's 
determination that the proposed rule is categorically excluded under CX 
A7.0

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA, 5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking,'' 67 FR 53461 (August 16, 2002), DOE published 
procedures and policies on February 19, 2003, to ensure that the 
potential impacts of its rules on small entities are properly 
considered during the rulemaking process (68 FR 7990). DOE has made its 
procedures and policies available on the Office of General Counsel's 
Web site: http://www.gc.doe.gov.
    DOE has reviewed today's proposed rule under the provisions of the 
RFA and the procedures and policies published on February 19, 2003. The 
proposed rule would apply only to Federal agencies, which are not small 
entities under the RFA. For this reason, DOE certifies that this 
proposed rule, if promulgated, would not have a significant economic 
impact on a substantial number of small entities. Accordingly, DOE has 
not prepared an initial regulatory flexibility analysis for this 
rulemaking. DOE's certification and supporting statement of factual 
basis will be provided to the Chief Counsel for Advocacy of the Small 
Business Administration pursuant to 5 U.S.C. 605(b).

D. Paperwork Reduction Act

    This rulemaking does not include any information collection 
requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.).

E. Unfunded Mandates Reform Act of 1995

    DOE reviewed this regulatory action under Title II of the Unfunded 
Mandates Reform Act of 1995 (UMRA, Pub. L. 104-4), which requires each 
Federal agency to assess the effects of Federal regulatory actions on 
State, local, and Tribal governments and the private sector. For 
proposed regulatory actions likely to result in a rule that may cause 
expenditures by State, local, and Tribal governments, in the aggregate, 
or by the private sector of $100 million or more in any one year 
(adjusted annually for inflation), section 202 of UMRA requires a 
Federal agency to publish a written statement assessing the resulting 
costs, benefits and other effects of the rule on the national economy 
(2 U.S.C. 1532(a) and (b)). Section 204 of UMRA requires a Federal 
agency to develop an effective process to permit timely input by 
elected officers of State, local and Tribal governments on a proposed 
``significant intergovernmental mandate'' (2 U.S.C. 1534). Section 203 
of UMRA requires an agency plan for giving notice and opportunity for 
timely input to potentially affected small governments that may be 
affected before establishing any requirements that might significantly 
or uniquely affect small governments (2 U.S.C. 1533). On March 18, 
1997, DOE published a statement of policy on its process for 
intergovernmental consultation under UMRA (62 FR 12820) (also available 
at: http://www.gc.doe.gov). Today's proposed rule, which would apply 
only to Federal fleets, contains neither an intergovernmental mandate 
nor a mandate that may result in the expenditure by State, local or 
Tribal governments in the aggregate, or by the private sector, of $100 
million or more in any year. Accordingly, no assessment or analysis is 
required under UMRA.

F. Treasury and General Government Appropriations Act, 1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any proposed rule that may affect family 
well being. This proposed rule would not have any impact on the 
autonomy or integrity of the family as an institution. Accordingly, DOE 
has concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

G. Executive Order 13132

    Executive Order 13132, ``Federalism,'' 64 FR 43255 (August 4, 
1999), imposes certain requirements on agencies formulating and 
implementing policies or regulations that preempt State law or that 
have federalism implications. Agencies are required to examine the 
constitutional and statutory authority supporting any action that would 
limit the policymaking discretion of the States and carefully assess 
the necessity for such actions. DOE has examined this proposed rule and 
initially has determined that it would not preempt State law and would 
not have a substantial direct effect on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Therefore, no further action is required by Executive Order 13132.

H. Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by section 3(a), section 3(b) of Executive Order 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) Clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provides a clear legal standard for 
affected conduct while promoting simplification and burden reduction; 
(4) specifies the retroactive effect, if any; (5) adequately defines 
key terms; and (6) addresses other important issues affecting clarity 
and general draftsmanship under any guidelines issued by the Attorney 
General. Section 3(c) of Executive Order 12988 requires Executive 
agencies to review regulations in light of the applicable standards in 
sections 3(a) and 3(b) to determine either that those standards are met 
or it is unreasonable to meet one or more of them. DOE has completed 
the required review and determined that, to the extent permitted by 
law, the proposed rule meets the relevant standards of Executive Order 
12988.

[[Page 14488]]

I. Treasury and General Government Appropriations Act, 2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516 note), provides for agencies to review most disseminations 
of information to the public under guidelines established by each 
agency pursuant to general guidelines issued by OMB. OMB's guidelines 
were published at 67 FR 8452 (February 22, 2002), and DOE's guidelines 
were published at 67 FR 62446 (October 7, 2002). DOE has reviewed 
today's proposed rule under the OMB and DOE guidelines and has 
concluded that it is consistent with applicable policies in those 
guidelines.

J. Executive Order 13211

    Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use,'' 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to OMB 
a Statement of Energy Effects for any proposed significant energy 
action. A ``significant energy action'' is defined as any action by an 
agency that promulgates or is expected to lead to the promulgation of a 
final rule or regulation, and that: (1) Is a significant regulatory 
action under Executive Order 12866, or any successor order; and (2) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy; or (3) is designated by the 
Administrator of OIRA as a significant energy action. For any proposed 
significant energy action, the agency must give a detailed statement of 
any adverse effects on energy supply, distribution, or use should the 
proposal be implemented, and of reasonable alternatives to the action 
and their expected benefits on energy supply, distribution, and use.
    As discussed in Part V.A above, this proposed rule has been 
determined to be a ``significant regulatory action'' under Executive 
Order 12866. Today's action, however, is not likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy and, therefore, is not a significant energy action. Nor has this 
action been designated by OIRA as a significant energy action. 
Accordingly, DOE has not prepared a Statement of Energy Effects.

List of Subjects in 10 CFR Part 438

    Energy, Energy conservation, Fuel, Motor vehicles, Petroleum, and 
Recordkeeping and reporting requirements.

    Issued in Washington, DC, on January 20, 2012.
 Henry Kelly,
Acting Assistant Secretary, Energy Efficiency and Renewable Energy.
    For the reasons set forth in the preamble, the Department of Energy 
is proposing to amend title 10 of the Code of Federal Regulations by 
adding a new Part 438 as set forth below:

PART 438--PETROLEUM REDUCTION AND ALTERNATIVE FUEL USE REQUIREMENTS 
FOR FEDERAL FLEETS

Subpart A--General Provisions
Sec.
438.1 Purpose and scope.
438.2 Definitions.
Subpart B--Petroleum Reduction and Alternative Fuel Consumption 
Requirements
Sec.
438.100 Purpose and scope.
438.101 Consumption requirements.
438.102 FY 2005 baseline.
438.103 Interim milestones.
438.104 Annual reporting.
Subpart C--Plans
Sec.
438.200 Purpose and scope.
438.201 Written plan.
438.202 Requisite elements.
438.203 Revision.

    Authority: 42 U.S.C. 6374e; 42 U.S.C. 7101 et seq.

Subpart A--General Provisions

Sec.  438.1  Purpose and scope.

    (a) The provisions of this part implement section 142 of the Energy 
Independence and Security Act of 2007 (Pub. L. 110-140).
    (b) This part applies to each Federal fleet, as that term is 
defined in section 438.2(l). Federal motor vehicles not subject to this 
part because they do not meet the definition of the term ``Federal 
fleet'' under 438.2(l) are encouraged to comply voluntarily with the 
requirements of this part.

Sec.  438.2  Definitions.

    The following definitions apply to this part:
    (a) ``Acquire'' means to take into possession or control.
    (b) ``Act'' means the Energy Independence and Security Act of 2007 
(Pub. L. 110-140).
    (c) ``Alternative fuel'' means the same as the definition of 
``alternative fuel'' set forth at section 490.2 of this chapter.
    (d) ``Alternative fuel consumption'' means alternative fuel 
consumed in all motor vehicles, including light duty, medium duty, and 
heavy duty motor vehicles, in a Federal fleet. The term also includes 
alternative fuel consumed in exempt vehicles and the alternative fuel 
consumed in low-speed electric vehicles.
    (e) ``Alternative fueled vehicle'' means a dedicated vehicle or a 
dual fueled vehicle, and includes a ``new qualified fuel cell motor 
vehicle'' as defined in 26 U.S.C. 30B(b)(3), a ``new advanced lean burn 
technology motor vehicle'' as defined in 26 U.S.C. 30B(c)(3), a ``new 
qualified hybrid motor vehicle'' as defined in 26 U.S.C. 30B(d)(3), and 
any other type of vehicle that the Administrator of the Environmental 
Protection Agency demonstrates to the Secretary would achieve a 
significant reduction in petroleum consumption.
    (f) ``Dedicated vehicle'' means--
    (1) a motor vehicle that operates solely on alternative fuel; or
    (2) a low-speed electric vehicle.
    (g) ``DOE'' means the U.S. Department of Energy.
    (h) ``Dual fueled vehicle'' means a motor vehicle 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)(9);
    (i) ``Emergency motor vehicle'' means any motor vehicle that is 
used in an emergency capacity at least 75 percent of the time.
    (j) ``Exempt vehicle'' means--
    (1) A motor vehicle used for motor vehicle manufacturer product 
evaluations or tests;
    (2) A law enforcement motor vehicle;
    (3) An emergency motor vehicle;
    (4) A military tactical vehicle;
    (5) A motor vehicle owned and operated by the Central Intelligence 
Agency;
    (6) A motor vehicle that is not licensed for use on roads and 
highways; or
    (7) A Federally-owned motor vehicle that is operated solely by an 
Indian nation or a State-run Fish and Wildlife service.
    (k) ``FAST '' means the Federal Automotive Statistical Tool 
developed by DOE.
    (l) ``Federal fleet'' means 20 or more Federally-operated motor 
vehicles operated within the United States or motor vehicles operated 
within the United States by any contractor or sub-contractor to the 
Federal Government, except that the term does not include--
    (1) Exempt vehicles as defined in section 438.2(j);
    (2) Motor vehicles owned by a contractor or sub-contractor that 
qualifies as a small business under 13 CFR part 121;
    (3) Motor vehicles owned by a contractor or sub-contractor when the

[[Page 14489]]

relevant contract, including options and renewals, is for a period of 
less than 12 months; and
    (4) Motor vehicles owned by a contractor or sub-contractor when a 
central purpose of the relevant contract is neither the provision of 
motor vehicles nor the provision of transportation services for people 
or materials on site.
    (m) ``Federally-operated'' means operated by an executive agency as 
defined in section 105 of title 5, United States Code, excluding the 
Government Accountability Office, and including the U.S. Postal 
Service.
    (n) ``Fiscal year'' means, for a given year, the 12-month period 
running from October 1 of the prior calendar year through September 30 
of the given calendar year. For example, Fiscal Year (FY) 2010 means 
October 1, 2009, through September 30, 2010.
    (o) ``Heavy duty motor vehicle'' means a motor vehicle with a gross 
vehicle weight rating of at least 16,000 pounds before any after-market 
conversion to alternative fuel operation.
    (p) ``Law enforcement motor vehicle'' means any motor vehicle that 
engages in, or is equipped to engage in, protective, high-speed, or law 
enforcement activities.
    (q) ``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 before any after-market conversion to 
alternative fuel operation.
    (r) ``Low-speed electric vehicle'' means a 4-wheeled on-road or 
non-road vehicle that
    (1) Has a top attainable speed in 1 mile of more than 20 mph and 
not more than 25 mph on a paved level surface; and
    (2) Is propelled by an electric motor and an on-board, rechargeable 
energy storage system that is rechargeable using an off-board source of 
electricity.
    (s) ``Medium duty motor vehicle'' means a motor vehicle with a 
gross vehicle weight rating of greater than 8,500 pounds but less than 
16,000 pounds before any after-market conversion to alternative fuel 
operation.
    (t) ``Military tactical vehicle'' means a motor vehicle designed or 
modified to military specification and used for the purpose of 
providing direct transportation support of combat or tactical 
operations or the protection of nuclear weapons, and which is not used 
for any other purpose.
    (u) ``Motor vehicle'' means a self-propelled vehicle designed for 
transporting persons or property on a street or highway. The term 
includes light duty, medium duty, and heavy duty motor vehicles.
    (v) ``Petroleum consumption'' means petroleum consumed in all 
Federal fleet motor vehicles, including light duty, medium duty, and 
heavy duty motor vehicles. The term excludes both petroleum consumed in 
exempt vehicles and petroleum consumed in low-speed electric vehicles.
    (w) ``Secretary'' means the Secretary of Energy.

Subpart B--Petroleum Reduction and Alternative Fuel Consumption 
Requirements

Sec.  438.100  Purpose and scope.

    This subpart sets forth requirements and interim milestones for 
reductions in Federal fleet petroleum consumption and increases in 
Federal fleet alternative fuel consumption.

Sec.  438.101  Consumption requirements.

    Not later than October 1, 2015, and for each year thereafter:
    (a) The annual petroleum consumption of each Federal fleet must be 
equal to or less than 80 percent of that Federal fleet's FY 2005 
baseline level, as determined in accordance with section 438.102(a); 
and
    (b) The annual alternative fuel consumption of each Federal fleet 
plus the annual alternative fuel consumption by each low-speed electric 
vehicle and exempt vehicle must be equal to or greater than 110 percent 
of the Federal fleet's FY 2005 baseline level, as determined in 
accordance with section 438.102(b).
    In the event that a Federal fleet was not in existence in FY 2005, 
DOE will prorate the requirements set forth in this section based on 
the date that the Federal fleet was established.

Sec.  438.102  FY 2005 baseline.

    The applicable FY 2005 baseline under section 438.101 for each 
Federal fleet is:
    (a) With respect to annual petroleum consumption, the amount of 
petroleum consumed by that Federal fleet in FY 2005 expressed in 
gasoline gallon equivalents, as reflected in the FAST data submitted to 
DOE for that Federal fleet for FY 2005; and
    (b) With respect to annual alternative fuel consumption, the 
greater of:
    (1) The amount of alternative fuel consumed by that Federal fleet 
in FY 2005 expressed in gasoline gallon equivalents, as reflected in 
the FAST data submitted to DOE for that Federal fleet for FY 2005, or
    (2) The lesser of:
    a. Five percent of the Federal fleet's total vehicle fuel 
(petroleum plus alternative fuel) consumption in FY 2005, and
    b. 500,000 gasoline gallon equivalents.
    In the event that a Federal fleet was not in existence in FY 2005, 
DOE will establish reasonable baselines for that Federal fleet.

Sec.  438.103  Interim milestones.

    The following non-mandatory interim milestones are to be used by 
each Federal fleet to assess its annual progress towards meeting the 
consumption requirements in section 438.101, as calculated from the 
applicable FY 2005 baseline:
    (a) Petroleum consumption
    (1) By September 30, 2010--10 percent reduction;
    (2) By September 30, 2011--12 percent reduction;
    (3) By September 30, 2012--14 percent reduction;
    (4) By September 30, 2013--16 percent reduction; and
    (5) By September 30, 2014--18 percent reduction.
    (b) Alternative fuel consumption
    (1) By September 30, 2010--5 percent increase;
    (2) By September 30, 2011--6 percent increase;
    (3) By September 30, 2012--7 percent increase;
    (4) By September 30, 2013--8 percent increase; and
    (5) By September 30, 2014--9 percent increase.

Sec.  438.104  Annual reporting.

    Beginning in FY 2010, the status of each Federal fleet must be 
reported annually in order to measure Federal fleet progress towards 
meeting the interim milestones set forth in section 438.103 and the 
consumption requirements set forth in section 438.101. Reports under 
this section must be submitted to DOE through the FAST system no later 
than December 15 of each calendar year. Each report must include the 
petroleum and alternative fuel used in all Federal fleet motor 
vehicles. Each report also must include the alternative fuel used in 
exempt vehicles and the alternative fuel used in low-speed electric 
vehicles.

Subpart C--Plans

Sec.  438.200  Purpose and scope.

    This subpart sets forth provisions concerning Federal fleet plans 
for meeting the petroleum consumption reductions and alternative fuel 
consumption increases set forth in subpart B.

[[Page 14490]]

Sec.  438.201  Written plan.

    No later than December 31, 2012, a written plan must be submitted 
to DOE that specifies each Federal fleet's strategy for meeting the 
consumption requirements set forth in section 438.101, including the 
interim milestones provided in section 438.103. Plans must be sent to 
the U.S. Department of Energy, Office of Energy Efficiency and 
Renewable Energy, Federal Energy Management Program (EE-2L), 1000 
Independence Avenue SW., Washington, DC 20585, or such other address as 
DOE may provide by notice in the Federal Register.

Sec.  438.202  Requisite elements.

    The written plan must:
    (a) Identify the specific measures that the Federal fleet will rely 
upon to meet the consumption requirements and interim milestones, such 
as plans for right-sizing the Federal fleet and strategies for reducing 
vehicle miles traveled;
    (b) Quantify (in percentage and in gasoline gallon equivalents), 
for each measure set forth in the plan, the reduction in petroleum 
consumption, and the increase in alternative fuel consumption projected 
to be achieved by the measure in each FY;
    (c) Specify the date by which each measure set forth in the plan 
will be implemented;
    (d) Quantify the composition of the Federal fleet by vehicle class 
and fuel type, ensuring that it is correctly sized to support mission 
requirements in each FY;
    (e) Specify actions to ensure that alternative fueled vehicles are 
acquired and located where the appropriate alternative fuel is 
available; and
    (f) Quantify (in percentage) the use of alternative fuel by 
alternative fueled vehicles and low-speed electric vehicles in each FY.

Sec.  438.203  Revision.

    Whenever an annual report under section 438.104 indicates that the 
Federal fleet failed to meet an interim milestone under section 
438.103, the plan previously developed and submitted under this subpart 
must be revised and resubmitted to the DOE Federal Energy Management 
Program within 180 days of submission of the annual report.

[FR Doc. 2012-5876 Filed 3-9-12; 8:45 am]
BILLING CODE 6450-01-P
```