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Alternative Fuel Vehicle Purchases Required
by the National Energy Policy Act of 1992

 

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Capitol In 1992, Congress enacted the National Energy Policy Act (EPACT). This law requires fleets of more than 50 vehicles (of which at least 20 are centrally fueled) light duty vehicles located in metropolitan areas (in Hawaii, only Oahu is covered) to purchase "alternate fueled vehicles." Requirements (% of new vehicles purchased each year which must be alternative fuel vehicles) are as follows: US Map

Model Year Federal Gov't State Gov't Fuel Provider
1997 25% 10% 50%
1998 33% 15% 70%
1999 50% 25% 90%
2000 75% 50% 90%
2001 75% 75% 90%
2002 75% 75% 90%
2003 75% 75% 90%
2004 75% 75% 90%
2005 75% 75% 90%
2006 and thereafter 75% 75% 90%

Download transportation sections of EPACT law (PDF format, 10,670 kb).

The alternate fuels permitted by EPACT are alcohol fuels, natural gas (not available in Hawaii), liquefied petroleum gas (also known as LPG or propane), hydrogen, biodiesel, coal derived fuels, biological materials derived fuels, and electricity. Federal laws also provide tax incentives for AFV purchases, conversions, and installation of "clean fuel" dispensing equipment. EPACT's intent is to encourage alternate fuel use by making fuels cheaper and more available.

In addition to the vehicle purchase requirements listed above, there are reporting requirements, provisions for exemptions, and provisions for "credits" if an agency has purchased more than the required number of vehicles or has purchased alternative fuel vehicles in advance of the requirements. Each "covered fleet" is required to submit reports to the Department of Energy on an annual basis.

The first reports (by State agencies and fuel providers) were filed with the U.S. Department of Energy at the end of 1997.

The Department of Energy has set up an Internet-based method of reporting vehicle acquisitions and credits (address: www.eere.energy.gov/vehiclesandfuels/epact).

Failure to acquire vehicles or file reports as required could result in prosecution under Federal law. The (civil) penalty for a violation is $5,000; for a "willful" violation, $10,000 (criminal fine); and for a repeated violation, $50,000.

The alternative transportation fuel part of the original 1992 law is available in PDF format here: EPACT law (10,670 kb). The Regulations for State and Fuel Provider Fleets are available from the U.S. Department of Energy, www.eere.energy.gov/vehiclesandfuels/epact/state



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HAWAII LAWS

State laws do not require the purchase of AFVs. However, there are several laws designed to encourage the local production and use of alternative fuels:
  • State highway taxes on alternative fuels are one-half to one-quarter (on an energy content basis) that of diesel. See HRS 243-4 and Fuel Taxes on Alternative Fuels.
  • Vehicles with special "electric vehicle" plates are allowed to park for free at parking meters and use the HOV lane at any time. See Factsheet on Act 290.
  • "Clean fuel" dispensing equipment is eligible for income tax deductions (same as federal deductions).
  • Ethanol fuel production facilities in Hawaii are eligible for tax credits. See Ethanol Facility Incentive .
  • A "high technology investment" tax credit can help reduce financial risk of innovation; it applies to innovation in nonfossil fuel research as well as other areas of high tech. See page on incentives.

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  Topic Buttons: Clean Cities, Alcohol, BIodiesel, Electric, LPG, Taxes
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