U.S. Legislative Updates

President Issues Federal Fleet Directive

The White House, on May 24, released a presidential memorandum that gives federal government fleets a December 31, 2015 deadline for restricting all their light-duty vehicle purchases and leases to solely alternative-fuel vehicles -- unless an agency's mission makes such compliance impractical.

The memorandum is intended to provide guidance for achieving fleet petroleum-reduction goals previously ordered by the Obama administration in October 2009. The document cites hybrid, electric, CNG, and biofuel-powered cars as examples of alternative-fuel vehicles. Where practicable, agencies are directed to encourage development of commercial infrastructure for alternative fuel or provide flex fuel and alternative fuel pumps and charging stations at Federal fueling sites.

NAFA Responds to Senate Committee

In a letter to the leadership of the U.S. Senate Energy and Natural Resources Committee, NAFA responded to the question that had been asked at a May 19 committee hearing. Committee Chairman Jeff Bingaman (D-NM) asked "What's in place to encourage or assist state and local government fleets to acquire alternative fuel and advanced technology vehicles?" NAFA's Executive Director Phil Russo said in a letter to Sen. Bingaman, "What government fleets need is a federal policy that helps to reduce the high upfront cost of advanced technology vehicles, such as a natural gas fueled truck or a plug-in hybrid. The cost of these vehicles severely limits the ability of state and local governments to add these vehicles to their operating fleet."

"Federal tax policy has long been used in the private sector to encourage the purchase of vehicles and technologies to reduce vehicle emissions, improve fuel economy, or enhance safety," Russo said. "These policies, however, omit an important segment of vehicle purchasers: tax-exempt organizations, such as state and local governments, public utilities, and educational institutions. These entities rarely, if ever, receive any value from these tax incentives. This has a dampening effect on their decision to acquire advanced technology vehicles – despite their public policy reasons for wanting to promote clean energy."