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The Energy Policy Act of 2003 Summary of NGV-related Provisions SEC. 701. USE OF ALTERNATIVE FUELS BYDUAL-FUELED VEHICLES (By Federal Agencies) • Dual fueled (i.e., bi-fuel or flex fuel) vehicles acquired shall be operated on alternative fuels unless the Secretary determines that an agency qualifies for a waiver. Waivers can be granted for the following reasons: - The alternative fuel is not reasonably available to retail purchasers of the fuel, or - The cost of the alternative fuel is unreasonably more expensive compared to gasoline • The Secretary shall monitor compliance with by all federal fleets and shall report annually to Congress on the extent to which the requirements are being achieved. The report shall include information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels. SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES • For purposes of EPAct compliance, purchasing a dedicated medium duty vehicle (8,500- 14,000 lbs GVW) now provides two vehicle credits. The purchase of a dedicated heavy- duty vehicle provides three vehicle credits. SEC. 704. INCREMENTAL COST ALLOCATION • Requires the General Services Administration to allocate the incremental cost of alternative fueled vehicles over the cost of all comparable gasoline vehicles it procures on behalf of federal agencies. Requires agencies that procure AFVs independent of GSA to similarly allocate the incremental cost. SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY • A person or State covered by EPAct alternative fuel vehicle requirements can get a waiver from those requirements upon a showing that the fleet owned, operated, leased, or otherwise controlled by the State or covered person will achieve a reduction in its annual consumption of petroleum fuels equal to the reduction in consumption of petroleum that would result from 100 percent compliance with the alternative fuel vehicle purchase requirements with those vehicles using alternative fuel 100 percent of the time.