delete PART 490—ALTERNATIVE FUEL TRANSPORTATION PROGRAM
This DOE regulation implements the Energy Policy Act of 1992's alternative fuel vehicle mandates, requiring state government fleets and alternative fuel providers to acquire escalating percentages (10-75%) of new light-duty vehicles as alternative fueled vehicles from 1997 onward. It defines covered fleets (20+ centrally-fueled vehicles in large metros, or 50+ vehicles nationwide), establishes compliance mechanisms including exemption processes and voluntary plan alternatives, and mandates annual reporting. The regulation aims to build replacement fuel supply capacity to replace 30% of US motor fuel consumption by 2030.
This federal mandate commandeers state governments and private businesses to serve federal energy policy goals, violating constitutional federalism and the principle of limited government. It distorts market signals by forcing purchases of vehicles that may not meet operational needs or be cost-effective, imposing hidden taxes on taxpayers and consumers. The compliance bureaucracy—exemption requests, annual reports, credit tracking—adds thousands of pages of administrative burden. The 30% replacement fuel goal represents central economic planning that Mises and Hayek would reject; only dispersed market participants can rationally allocate resources across diverse fuel needs. After 30+ years, this experimental mandate has failed to achieve its transformative vision while costing billions in compliance and higher vehicle costs, particularly harming small fleets with higher per-employee burden. The revolving door between DOE and alternative fuel industries likely shaped these requirements to benefit incumbent producers at consumer expense.