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BUSINESS FLEETS OBJECT TO PURCHASE REQUIREMENTS

 BUSINESS FLEETS OBJECT TO PURCHASE REQUIREMENTS
 WASHINGTON, Sept. 16 /PRNewswire/ -- The National Association of


Fleet Administrators issued the following:
 In a Sept. 16 letter to members of the House-Senate Conference Committee, a broad cross-section of American companies demanded that Congress reconsider mandates in the pending energy legislation. If adopted, the legislation would require corporate fleets to begin using alternative fueled vehicles as early as 1998, at a cost to U.S. fleets of an estimated $8 billion, according to a recent Department of Energy report.
 The companies, which represent virtually all business sectors, expressed serious concern with these high costs that companies would incur in order to install fueling facilities and to purchase alternative fueled vehicles.
 In a letter to members of the House-Senate Conference Committee, corporate fleet representatives expressed frustration that fleet mandates were being justified by promises made by alternative fuel providers to underwrite the costs of vehicles and fueling facilities.
 "National energy policy should not be based on promises alone," the fleet representatives cautioned.
 Responding to recent promises of financial support from natural gas producers, the fleet representative warned, "Mandates can be especially dangerous if the promises of alternative fuel producers fail to materialize." The fleets further noted that "creative but untested ideas for deferring high initial costs ... are being offered in only a few areas and to only a tiny percentage of fleets."
 While expressing their support for the "concept of improved energy independence and a decisive energy policy," they urged Congress to ensure that "expenses are justified by real public benefits."
 The fleet representatives pointed out that "there is a wide diversity of claims for costs and availability of alternative fuels," and that legislation which sets "a firm mandate today -- while so many claims cannot be tested -- could force business fleets into exceptional costs and operational hardships."
 They also expressed the concern that mandates fail to recognize the wide diversity of business vehicle fleets and the need for fleets to evaluate fuel costs, vehicle prices, resale values and related issues.
 "Because these needs vary greatly from fleet to fleet ... direct mandates can defeat the very reasons to have a fleet -- and seriously disrupt services on which the economy depends," the fleet representatives warned.
 Many of the companies who joined in the letter to Congress have been in the forefront of efforts to test alternative fueled vehicles and several have already made commitments to include alternative fueled vehicles in their fleets.
 The corporate fleets urged the conferees to reject fleet mandates in favor of reliance upon market-based incentives which encourage fleets to acquire alternative fueled vehicles and encourage competition between producers of alternative fuels.
 -0- 9/16/92
 /NOTE: For a copy of the letter, call 202-223-6222/
 /CONTACT: David Lefever, 908-494-8100, or Patrick O'Connor, 202-223-6222, both for the National Association of Fleet Administrators/ CO: National Association of Fleet Administrators ST: District of Columbia IN: OIL TRN SU: LEG


KD -- DC013 -- 0063 09/16/92 11:13 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
Words:491
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