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Wednesday, February 18, 2004
Contact: Tim Hurd, (202) 366-9550
NHTSA 8-04
NHTSA Extends Dual-Fuel Credit
For Fuel Economy through Model Year 2008
In an effort to spur the continued development and use of alternate-fuel-powered
vehicles, the U.S. Department of Transportation (DOT) has extended until 2008
the incentive for dual-fueled vehicles created by the Alternative Motor Fuels
Act (AMFA).
The DOT’s National Highway Traffic Safety Administration expects that the
four-year extension of the incentive means that manufacturers will produce more
dual-fueled vehicles than they would if the incentive were not extended. It also
means that the U.S. vehicle fleet will have greater capability to operate on
ethanol, a domestic fuel. Increased ethanol use can decrease U.S. reliance on
foreign petroleum. The decision also gives the Congress, other federal agencies,
regional authorities, and the private sector ample time to identify, adopt and
implement measures to enhance the alternative fuel infrastructure.
“Diversifying the fuels we use will help protect the environment while achieving
greater energy independence and security for our nation,” U.S. Transportation
Secretary Norman Y. Mineta said. “Extending this incentive will encourage
manufacturers to produce dual-fueled vehicles and retailers to provide pumps for
these fuels.”
Passed by Congress in 1988, the act provides an incentive by increasing the fuel
economy values for dual-fueled vehicles. The higher values make it easier for a
manufacturer to comply with the Corporate Average Fuel Economy (CAFE) standards.
The act limits the extent to which a manufacturer can use the incentive to
increase its overall CAFE to 0.9 miles per gallon for any model year.
The final rule is available to the public in the DOT docket (Docket Number NHTSA
2001-10774). The rule is also viewable on the Internet by conducting a “simple
search” using the number “10774” at
http://dms.dot.gov/.
To date, 3.4 million dual-fueled vehicles have been produced. The act is
intended also to encourage the development of retail outlets to supply consumers
with alternative fuels. Currently, 182 retail outlets nationwide offer E-85
fuel, an alternative fuel that is a blend of gasoline and ethanol.
Dual-fueled vehicles are capable of operating on either gasoline or diesel or an
alternative fuel.
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