This memorandum outlines new agency requirements to deliver a Cleaner NSW Government Fleet. This commitment will demonstrate Government leading by example to reduce the environmental impact of our light vehicle fleet.

Greenhouse emissions from transport represent 15% of total NSW greenhouse emissions and have increased 20% from 1990 to 2002. They continue to grow strongly.

The Cleaner NSW Government Fleet initiative will:

• encourage the procurement of smaller, cleaner and less polluting vehicles;
• reduce fuel consumption and greenhouse gas emissions; and
• save both vehicle purchase and running costs.

All general government sector agencies are required to establish a Fleet Improvement Plan to meet specific targets for both noxious and greenhouse emission reductions. These targets and agency responsibilities are described below.

Local Government and public trading enterprises are strongly encouraged to adopt these principles as an integral part of their business, thereby contributing to NSW's broad energy and environmental outcomes while pursuing good business practice.

Agency responsibilities

Develop a Fleet Improvement Plan
By 1 July 2005 each agency must develop a Fleet Environmental Improvement Plan ('the Plan') to improve the environmental performance of its fleet.

Each Plan must outline how the agency will meet the operational requirements of its light vehicle fleet (vehicles up to 3.5 tonnes gross vehicle mass) in a manner that meets the government targets for improved environmental performance.
The plan should include:

• An outline of the business needs for the fleet
• The current size and composition of the vehicle fleet.
• The environmental performance of the fleet using the NSW Clean Car Benchmarks.
• Measures to achieve the 60% 'Fleet Performance Indicator' score by 2006-07.
• Measures to achieve the greenhouse emissions reduction targets.
• Annual estimate of number of vehicles to be purchased by category.

Business needs should be the determining factor for the size and composition of an agency's fleet, rather than reflecting past practice or individual preferences. Commercial vehicles and 4WDs should only be used where required for an operational purpose.

Monitor and report performance
Each agency is required to publicly report annually on progress in achieving their targets. The Department of Energy Utilities and Sustainability will collect and compile the data and report as a part of the Government Energy Management Policy.

Each agency must provide its Fleet Improvement Plan and baseline data to the Department of Energy Utilities and Sustainability and the Department of Commerce (StateFleet) by 1 July 2005.

Government targets

Average environment performance score target
Each agency is required to achieve:

• an average 'environment performance score' of 10/20 by 2005-06
• average 'environment performance score' of 11/20 by 2006-07
• an average 'environment performance score' of 12/20 by 2007-08

In 2007, further targets will be set for 2008-09 and 2009-10.

The average environment performance score is calculated using the vehicle scoring system adopted for the NSW Clean Car Benchmarks, which rates the greenhouse emissions (measured as CO2) and air quality impact (noxious emissions) of vehicles.

Further information about the NSW Clean Car Benchmark is set out in the document Guidelines for Fleet Managers, available from the Department of Commerce (StateFleet) at http://www.statefleet.ogp.commerce.nsw.gov.au/ or [email protected].

Agency procurement of four wheel drives and other light trucks below the average environmental performance of 9.5 / 20 is only allowed where the vehicle is required to meet a specific operational need.

Vehicles powered with V8 engines can no longer be purchased on the general Government Motor Vehicle Contract, in recognition of the significant greenhouse and economic costs of these vehicles. A V8 powered vehicle may only be purchased with the approval of both the agency CEO and the General Manager of StateFleet at the Department of Commerce.

Greenhouse reduction target
The NSW Government will reduce the greenhouse emissions (CO2) from the operation of its vehicle fleet by setting greenhouse reduction targets for agencies.
Using the baseline of 2004/05 performance, each agency is required to achieve:

• A 10% reduction in greenhouse gas emissions by end 2005/06 financial year
• A 15% reduction in greenhouse gas emissions by end 2006/07 financial year
• A 20% reduction in greenhouse gas emissions by end 2007/08 financial year

These targets can be achieved by reducing total fuel consumption, including:

• Improving fuel efficiency of individual vehicles;
• Reducing the number of vehicles in the fleet; and
• Reducing vehicle kilometres travelled.

Achievement of targets is performance-based to allow fleet managers to make decisions regarding vehicle category purchase, fuel type and appropriate use, to allow maximum flexibility to meet their operational needs at the same time as meeting the fleet targets.

The Department of Commerce will implement new administrative arrangements to assist agencies meet their targets. These arrangements will allow StateFleet to determine the make and model that best meets the agency requirements whilst also taking account of the environmental targets and residual risks.

Note - Agencies that already meet the average environmental performance targets, have lower targets for greenhouse emissions recognising they already have a cleaner fleet. They are required to achieve a 5% greenhouse reduction by 2005/06, 7.5% greenhouse reduction by 2006/2007 and a 10% greenhouse reduction by 2007/08.
Emergency vehicles (as defined in the NSW Government Motor Vehicle Policy) are exempt from this policy.

Further information
Guidelines for Fleet Managers have been developed to further assist fleet managers to implement this initiative. It is available at www.statefleet.ogp.commerce.nsw.gov.au or [email protected].

The Department of Commerce has developed an internet tool to assist fleet managers gather baseline data for their Fleet Improvement Plan. This can be found at www.statefleet.ogp.commerce.nsw.gov.au.

Bob Carr
Premier 

Contact: Michael Wright, General Manager, StateFleet, Department of Commerce,
Phone: 9372 7740
Email: [email protected]
Website: www.statefleet.ogp.commerce.nsw.gov.au
Date: 21 February 2005

This Memorandum has not superseded any other Memoranda,
updates Circular C2002-45 and complements Circular C2004-47