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Washington, D.C. 20240
October 5, 2007
In Reply Refer To:
1525 (850) P
Instruction Memorandum No. 2008-005
Expires:  09/30/2009
To:                   All Field Officials (except Alaska)
From:               Assistant Director, Business and Fiscal Resources
Subject:            Bulk Acquisition of Bio-diesel Fuel
Program Area: Acquisition, fleet, energy management.
Purpose: To achieve a green rating on the Transportation Management Scorecard by increasing non-petroleum-based fuel consumption by at least 10 percent annually.
Policy/Action: Effective immediately, all Bureau of Land Management (BLM) acquisitions of bulk diesel fuel for delivery to BLM-owned fuel tanks must be a bio-diesel fuel blend of up to 20 percent (B20). Information about bio-diesel fuel, including a list of distributors, can be found at http://www.biodiesel.org/. In addition, when available, bulk delivery of bio-diesel fuel for tactical fire-fighting situations is also required.  This requirement does not apply in Alaska, where bio-diesel fuel is currently not available.
Bio-diesel fuel tanks shall be clearly labeled. The following website addresses concerns about bio-diesel fuel quality and the effect of bio-diesel fuel on engine warranties:
The regulations regarding the requirement for metering of fuel during delivery and inventory and accountability during dispensation of fuel also apply to bio-diesel fuel.
Timeframe: Immediately upon receipt.
Budget Impact:  Bio-diesel fuel has traditionally cost more than diesel fuel. As the cost of petroleum-based fuel has risen, the price difference between bio-diesel and regular diesel fuel has decreased. Any cost difference will be equalized through the Working Capital Fund, which may result in an increase in the use rate of all diesel-class vehicles. The Working Capital Fund will also absorb any maintenance/repair costs resulting from the conversion to bio-diesel fuel.
Background:  In accordance with Executive Order 13423, Strengthening Federal Environmental, Energy and Transportation Management, and in order for the BLM to achieve a green Transportation Management Scorecard, consumption of alternative, non-petroleum-based fuel must increase by 10 percent per year. In Fiscal Year (FY) 2006, consumption of bio-diesel fuel by BLM vehicles increased by 5.6 percent over FY 2005. However, this increase was off-set by decreases in other types of alternative fuel. The BLM needs to take immediate steps to ensure that progress is made toward the 10 percent goal.
Manual/Handbook Sections Affected:  This policy does not have any impact on existing manual sections.
Coordination: This policy was coordinated with the Division of Engineering and Environment Services, WO-360, the National Business Center, and the Field Committee.
Contact: If you have questions, please contact Marge Mascher, Business Management Specialist, Division of Acquisition, Property and Headquarters Services, WO-850, at 202-452-5022; Steve Rossi, Procurement Analyst, WO-850, at 202-452-7729; or Robert Jolley, Environmental Engineer, WO-360, at 202-557-3562.
Signed by:                                                                   
Authenticated by:
Michael A. Ferguson                                                   
Robert M. Williams
Assistant Director                                                        
Division of IRM Governance,WO-560
Business and Fiscal Resources

Last updated: 10-21-2009