The Alternative Fuels Act (AFA) requires the President of the Treasury Board to report annually on the application of the AFA in respect of all federal bodies (departments and agencies) named in schedules I, I.1, and II of the Financial Administration Act (FAA).
The purpose of the AFA is to accelerate the use in Canada of alternative transportation fuels (ATF) in motor vehicles to reduce the emission of carbon dioxide and other greenhouse gases, thereby lessening dependence on petroleum-based fuels for transportation. These fuels ATF include ethanol, methanol, propane gas, natural gas, hydrogen, or electricity, which must be used as a sole source of direct propulsion energy.