Potential Coverage of Alternative Fuel Industries under EPACT Section 501

The Energy Policy Act (EPACT) has the goal of replacing 10 percent of transportation petroleum fuel with alternative fuels and replacement fuels by the year 2000 and 30 percent by 2010. Sections 501 and 507 of EPACT mandate use of alternative fuel vehicles (AFVs) in fleet applications. In particular, Section 501 requires that certain percentages of new light-duty vehicles (LDVs) acquired by alternative fuel providers be AFVs. The first step in estimating the effects of these mandates entails identifying affected fleets that are covered by the act. An assessment of potential fleet coverage of Section 501 is presented. This assessment concludes that a limited number of companies in the methanol, ethanol, propane, and hydrogen industries are likely to be covered by this mandate. On the other hand, many of the large crude-oil producers, petroleum refiners, natural-gas producers and transporters, and natural gas and electric utilities are likely to be subject to this mandate.