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Credit Pacific Service Union Automakers will keep building cars and trucks capable of using alternative fuels even though the Bush administration is killing an ambitious, decade-old program to expand markets for vehicles that dont burn gasoline.

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Credit First Service Union A big reason: Flexible fuel vehicles, such as those that can burn gasoline or E85 which is 85 percent ethanol and 15 percent gasoline earn fuel economy credits for the automakers even if owners buy only gasoline. The credits help companies comply with Corporate Average Fuel Economy (CAFE) standards.

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Card Credit Mobile Service For example, a flexible fuel 2001 Dodge Caravan with a 3.3-liter V-6 engine was credited as a 38.8-mpg truck for CAFE. The gasoline-only version was rated at 23.5 mpg, federal sources said.

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Card Credit Discover Service In any case, the administration has quietly decided that it wont force local government and private fleets to buy alternative fuel vehicles. The U.S. Department of Energy concluded that such a mandate would do little to reduce gasoline use. A requirement that federal and state government fleets acquire alternative fuel vehicles stays in effect.

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Credit Public Service Union The decision against expanding the mandate is an official acknowledgment of reality: A lofty goal set in 1992 to have alternative fuels replace 30 percent of U.S. gasoline consumption by 2010 isnt going to happen. And so another government effort to wean the nation from its reliance on imported oil is in tatters.

E85 is a fuel blend that is only about 15% gasoline and 85% ethyl alcohol made from corn and other crops. U.S. President George W. Bush has ardently encouraged the use and development of E85 and other alternative fuels to minimize dependence on foreign oil imports. However, fuel vehicles like the new 2007 Jeep Grand Cherokee. One of these problems is the limited number of gas stations that offer E85 fuel.

Card Credit Processing Service While automakers still have their own, arguably selfish reasons to build flexible fuel vehicles, the departments action is a blow to prospects for vehicles that are designed to burn only an alternative, such as natural gas, propane or an alcohol-derived fuel, such as ethanol or methanol.

Center Credit Service Union One early study for the department said that if it forced many local government and private fleets to acquire alternative fuel vehicles, sales of such cars and trucks would reach 320,000 each year. The existing mandate for federal and state government fleets yields sales of about 25,000 a year.

Card Credit Service Wireless Now the department is saying that the estimate for the expanded mandate was far too high. For that and other reasons, the department has concluded that almost nothing would be gained from pushing more fleets to acquire alternative fuel vehicles.

Credit Security Service Union Its findings were published in a legal notice March 4. It is expected to become final within months.

Credit Report Service This defies logic, given the current world events and environmental problems, said Russell Long, executive director of the Bluewater Network, a San Francisco environmental group that tried to compel the department to expand the alternative fuel mandate to local government and private fleets.

Blogspot Com Christian The network and two other environmental groups won a federal court ruling over the issue last year.

Christian Counseling Credit Judges said the groups arguments were correct: The 1992 law requiring federal and state fleets to use alternative fuel vehicles also contained deadlines for the department to rule on expanding the mandate to certain local government and private fleets.

Credit Federal Service Union The department missed those deadlines, so some kind of action had to be taken soon, the judges said.

Credit Monitoring Service The environmental groups did not even consider that the department decision could be to drop any requirement for adding alternative fuel vehicles to local government and private fleets, said Long.

Credit Division Service Even an association of fleet administrators, which opposed an alternative fuel mandate, calls the department finding an unexpected surprise.

Card Credit Online Service Automakers frequently tout their development of alternative fuel vehicles as one of the good things they do for the environment, but as a group they have not yet focused on the department finding, said Mike Stanton, vice president of the Alliance of Automobile Manufacturers.

Consumer Counseling Credit Inc Ford, which calls itself the leader with more than a million alternative fuel vehicles sold, will not change its product plans because of the decision, said Ford spokesman Mike Moran.

Card Credit Fleet Service Ford has dropped a flexible fuel Ford Ranger but added a natural gas E-450 chassis for small buses, and it continues to build flexible fuel Explorers and Tauruses, among other models, Moran said.

Card Consolidation Credit General Motors did not favor an expanded government mandate because it could have been a burden for some fleet operators, who are GMs customers, said GM spokesman Mike Morrissey.

Credit Free Online Report But the company remains committed to alternative fuels, especially E85 for flexible fuel vehicles, and has launched an effort to get more of them to use E85, Morrissey adds. Patrick OConnor, a lawyer who lobbied for the National Association of Fleet Administrators, agrees that an expanded mandate was a bad idea.

Credit Federal First Service Alternative fuel vehicles are more costly than gasoline-powered versions, and alternative fuels arent available everywhere, he said.

Consumer Credit Service Plus, some fleets cant get alternative fuel vehicles configured the way they need them that is, outfitted to haul special tools or equipment.

Center Credit Family Service The department decision to drop the expanded mandate contained an unusually candid government acknowledgment that flexible fuel vehicles, in the real world, are unlikely to burn anything except gasoline.

Credit Reporting Service Yet, the National Highway Traffic Safety Administration (NHTSA) continues to give extra fuel economy credits to automakers for producing flexible fuel vehicles, even if they never use an alternative fuel.

Cca Credit Division Service By Harry Stoffer
Automotive News - 3/18/03

Topic: Petroleum Industry

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