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Implementing Fuel Efficiency in Corporate Fleets: Strategies and Incentives

Learn how to implement green fleets, incentives for fuel-efficient strategies, advantages of fuel economy improvements, and more. Explore the availability, cost, and performance of fuel-efficient vehicles compared to conventional ones.

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Implementing Fuel Efficiency in Corporate Fleets: Strategies and Incentives

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  1. Objectives • Explain how to implement green fleets • Learn about incentives for converting to fuel efficient fleets • Learn about the availability and cost of fuel efficient strategies and vehicles • Identify the advantages of fuel economy improvements • Understand how fuel efficient vehicles perform compared to conventional vehicles

  2. Greening of Fleets • Why use green fleets? • Reduce operating costs • Reduce greenhouse gas emissions • Improve corporate image

  3. How to Implement Green Fleets • Get buy-in • Create long-term objectives • Avoid setting reduction goals in absolute numbers • Anticipate obstacles • Move slowly • Improve vehicle use • Track and report progress

  4. Fuel Efficient Fleets • A measure of how efficiently a vehicle uses fuel • Miles per gallon (MPG) • Specific tests used to determine ratings • Affected by vehicle design and operation • EPA sets emissions and fuel economy standards for all vehicles

  5. CAFE regulations • Increased standards put in place by the Obama administration • Engine and vehicle design • Road load equation shows where power is consumed • Fuel consumption increases as engine power increases • Power for accessories and auxiliary equipment

  6. Incentives for Implementing Fuel Efficiency • Incentives • Partnership initiatives and pooled resources • Financial subsidiaries • Informational tools • Initial cost vs. federal and state incentives • American Recovery and Reinvestment Act (ARRA) • Clean Cities Program

  7. Tax Incentives • Incentives for hybrid and electric vehicle purchases • Heavy-duty fleet incentives for reduced idling • Availability and regulations are constantly changing • Gas guzzler tax

  8. Figure 1: Gas guzzler tax based on fuel economy. Source: fueleconomy.gov.

  9. Federal Grant Funding • Federal government = largest grant provider • U.S. Department of Energy (DOE) • U.S. Department of Transportation (DOT) • Environmental Protection Agency (EPA) • U.S. Department of Agriculture (USDA)

  10. State Grant Funding • State Energy Office (SEO) • National Association of State Energy Officials directory • Alternative Fuels Data Center map • To find state-specific information, visit www.afdc.energy.gov/afdc/laws/state

  11. Incentives for Fuel Efficient Vehicle Production • Research of HEVs and FCEVs • Advanced Technology Vehicle (ATV) manufacturing incentive • Incentives help make research and production more economical

  12. Fuel Economy Availability and Cost • Available in light-, medium-, and heavy-duty vehicles • Technologies combined with hybrid systems for light- to heavy-duty vehicles • Strategies applied to light-and heavy-duty vehicles/fleets, both old and new

  13. Figure 2: Most fuel efficient passenger cars for 2012 model year. Source: EPA.

  14. Figure 3: Most fuel efficient trucks and SUVs for 2012 model year. Source: EPA.

  15. Cost • Fuel efficient vehicles/strategies directly affect fleet costs • Payback period • Generally no monetary commitment is needed for strategies alone

  16. Fuel Economy Advantages • Immediate savings from implementing strategies • Reduced emissions and carbon footprint • Reduces U.S. dependence on foreign oil

  17. Things to Consider • New vehicles have a higher capital cost, but 2013 window stickers may help to better examine payback periods • Some strategies such as load reductions are not possible for heavy-duty long haul applications • Fleet operators may require monitoring to ensure that fuel efficient strategies are utilized

  18. Fuel Economy Strategies • Slow down • Coasting • Cruise control • Tire Pressure • Weight • Air conditioning • Rerouting • Maintenance • Transmission • Motor oil Figure 4 (left): Cruise control button and controls. Source: fueleconomy.gov. Figure 5 (right): Extra weight can decrease vehicle fuel economy. Source: fueleconomy.gov.

  19. Fuel Economy Label • Standard for 2013 vehicles • Predicted annual fuel cost, GHG rating, smog rating • Directs buyers to fueleconomy.gov • QR code integration

  20. Figure 6: New EPA window label for consumers. Source: EPA.

  21. Fuel Economy Performance • Fuel efficient vehicles have similar or better performance than conventional vehicles • New engine technologies

  22. Test Your Knowledge • True or False: Fuel economy savings can only be accomplished by the purchase of new fleet vehicles. • True or False: The new 2013 EPA window stickers help buyers understand the operating fuel costs and fuel savings of new vehicles. • The Corporate Average Fuel Economy standard was recently raised by President Obama to ________ MPG by the year 2025. • True or False: Hybrid electric vehicles offer improved vehicle fuel economy and are available for both light-duty and heavy-duty fleets.

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