FEMP Best Practices: Sustainable Fleet Core Principles

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Overview of Core Principles of Sustainable Fleet Management

The Federal Energy Management Program (FEMP) recommends best practices for optimizing fleet management. To meet mission-critical needs and comply with all Federal fleet sustainability goals and mandates, an agency can reduce its fleet’s petroleum consumption through the appropriate combination of the four core principles of sustainable fleet management:

  • Right-sizing fleets and vehicles to missions
  • Reducing vehicle miles travelled (VMT) and idling
  • Increasing fleet fuel efficiency
  • Increasing use of alternative fuels (including biodiesel blends) and electricity (through deployment of electric vehicles [EVs] and related charging infrastructure).

The following sections introduce core principles that can help agency fleet managers develop a strategic plan for their fleet. For more detail on these core principles, download the full report, Federal Best Practices: Core Principles of Sustainable Fleet Management.

Agency fleet managers should evaluate petroleum reduction strategies and tactics for each fleet location based on an evaluation of site-specific characteristics, including availability of alternative fuel, fleet size, and fleet vehicle composition.
 

Right-Size Fleets and Vehicles to Mission

Agencies should right-size fleets to identify and eliminate unnecessary or inefficient vehicles and replace them, if necessary, with more efficient vehicles as well as alternative fuel vehicles (AFVs). To right-size its fleet an agency must (1) compile its vehicle inventory and understand how its vehicles are used (e.g., mileage, purpose, etc.); and (2) analyze the fleets’ operational (or mission) needs, while identifying opportunities to eliminate unnecessary, inefficient, and/or nonessential vehicles from the agency’s fleet inventory.

Right-Sizing Fleets

Right-sizing means matching an agency’s vehicle needs to its mission requirements.

A structured vehicle allocation methodology (VAM) process provides a framework for right-sizing an agency’s fleet. GSA’s FMR § 102-34.40 requires that federal agencies establish and document a structured VAM to determine the appropriate size and number of motor vehicles in the fleet and identify opportunities to eliminate unnecessary vehicles, right-size vehicles for their missions, and deploy AFVs effectively. GSA suggests that agencies complete a VAM at least once every 5 years. Agencies are encouraged to conduct a VAM study more frequently if agency missions or resources change. A VAM study can help your agency determine its optimum fleet inventory and reduce fleet costs. It can also support a fleet management plan through the appropriate acquisition, placement, and use of higher efficiency vehicles and AFVs. This plan should include an optimal fleet inventory size projection (by vehicle class and fuel type) to meet mission needs and sustainability requirements.


Reduce Vehicle Miles Traveled

One of the first steps in developing an agency-wide petroleum reduction strategy is to evaluate opportunities to reduce the miles your fleet travels. Reducing fleet VMT decreases fleet petroleum use and fleet costs, including reduced vehicle operational and maintenance costs and longer vehicle life before replacement. Further, reducing VMT can enable a reduction in the number (and cost) of vehicles required to accomplish the fleet’s mission, and therefore is directly related to actions taken to right-size fleets. Fleet managers should always try to minimize VMT even while increasing fleet efficiency and alternative fuel use (including electricity).

There are no specific mandates to reduce VMT. However, success in doing so contributes to achieving EISA Section 142 petroleum reduction requirements. The significant benefit of this approach, relative to other petroleum reduction strategies, is the opportunity for immediate and sustained reduction of total fleet management costs.

The strategies to reduce VMT discussed here should be applied to all fleet vehicles, regardless of vehicle type (light-duty, medium-duty, or heavy-duty) or vehicle fuel type (AFV, EV, or conventional-fueled vehicle). A variety of options for VMT reduction are available for consideration and implementation. Fleet managers can implement some of these measures independently while collaboration with facility or agency management may be necessary in other cases. Measures to reduce VMT include the following:

  • Eliminating vehicle trips. Use telephone, video, and web conferencing tools for meetings, work from home when practical, and walk or bike as appropriate.
  • Consolidating trips. Consolidate routes and carpool to eliminate duplication of trips.
  • Providing agency shuttles. Provide a shuttle service for high-use routes to consolidate trips.
  • Using mass transportation. Use mass transportation alternatives to eliminate fleet vehicle transportation needs.
  • Improving scheduling and routing. Optimize travel time and distance for delivery of services by using telematics and GPS technology to improve routing and efficiency of fleet vehicles.
  • Implementing transportation on demand. Use demand-responsive systems to offer shuttle, bus, or carpooling service to employees.
     

Increase Fleet Fuel Efficiency

Increasing fleet fuel efficiency is a simple, low-cost, and effective method to comply with statutory mandates and reduce fleet petroleum use. This section provides an overview of the following five tactics to increase fleet fuel efficiency. Agencies should implement these strategies regardless of vehicle size or fuel type.


Optimize Cost-Effective Alternative Fuel Use

One effective strategy to reduce petroleum use is to displace it with alternative fuels, including electricity, biodiesel blends, and renewable diesel blends. Alternative fuels have additional advantages as well. Most are produced domestically, benefitting the national economy, and oftentimes they are more affordable than gasoline or diesel. Agencies should decide on the type of AFV and infrastructure based on fleet location characteristics.

To promote increased alternative fuel consumption by AFVs in the Federal fleet, Section 701 of EPAct 2005 requires Federal agencies to use only alternative fuel in its dual-fueled vehicles, except where the vehicles have received a waiver from DOE due to the local unavailability of alternative fuel or fuel that is unreasonably more expensive than gasoline. This means, for example, that if E85 infrastructure is available at or near a fleet location, all fleet E85 FFVs operating at that location are required to refuel solely with E85 using that infrastructure. Agencies are encouraged to focus on deploying dual-fueled AFVs in locations with existing or planned alternative fuel infrastructure and deploying new alternative fuel infrastructure near high concentrations of dual-fueled vehicles waivered due to the unavailability of fuel.

Alternative fuels include but are not limited to electricity, E85 (a blend of 85% ethanol and 15% gasoline), neat (100%) biodiesel (B100), neat (100%) renewable diesel, compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and liquefied petroleum gas (LPG) or propane.

Alternative fuel and alternative fuel vehicle types include:

  • Electricity. Electricity use requires both EVs, which include battery electric vehicles (BEVs), low-speed electric vehicles (LSEVs), and PHEVs, and dedicated charging infrastructure.
     
  • E85, CNG, LNG, and LPG. The use of these alternative fuels requires both AFVs and dedicated refueling infrastructure. These alternative fuels are best used at fleet locations where alternative fuel is currently available or expected to become available (i.e., emerging markets) or at high-use locations where alternative fuel sites are planned in the near term.
     
  • Neat biodiesel and biodiesel blends. Neat biodiesel and biodiesel blends require dedicated refueling infrastructure but can be used in conventional diesel vehicles. Biodiesel strategies are ideal for locations with high diesel fuel use. Biodiesel blends refer to blends of greater than 20% biodiesel with diesel (e.g., B20). Note that biodiesel blends are not alternative fuels. However, the neat biodiesel component of biodiesel blends greater than 20% is counted as biodiesel in calculating fleet alternative fuel use.
     
  • Neat renewable diesel and renewable diesel blends. Neat renewable diesel and renewable diesel blends are “drop-in” replacement fuels for diesel; renewable diesel is fully compatible with existing diesel refueling infrastructure and engines. Substituting diesel fuel with renewable diesel is an effective petroleum reduction strategy at most fleet locations with diesel vehicles. Renewable diesel blends refer to blends of greater than 20% renewable diesel with diesel (e.g., R20). Note that renewable diesel blends are not alternative fuels. However, the neat renewable diesel component of renewable diesel blends greater than 20% is counted as renewable diesel in calculating fleet alternative fuel use.

To maximize alternative fuel use increases and petroleum reductions, agencies should support strategies to increase alternative fuel use by:

  • Acquiring AFVs, including BEVs and PHEVs, and placing them in or near areas with existing or planned alternative refueling sites (agencies should ensure alternative fuel infrastructure, including charging infrastructure and the associated fuel necessary to support dedicated AFVs, is in place before accepting delivery of vehicles); and by running dual-fueled vehicles on alternative fuel
     
  • Installing alternative fuel infrastructure (including charging infrastructure) in fleet locations with the highest AFV concentrations that use that fuel type
     
  • Communicating and coordinating with nearby fleets (both public and private sector) to aggregate demand for alternative fuel.