Carmakers may get fuel credit concession
Measure would let industry get boost from cars that run on ethanol, even if owners use gas.
By Juliet Eilperin / Washington Post
WASHINGTON -- A little-noticed provision in the House energy bill provides a key concession to major automakers, allowing them to take credit for producing vehicles that run on ethanol even if owners are using regular gas.
The measure makes it easier for manufacturers to meet federal fuel economy requirements.
The flexible-fuel credit, which is set to expire in 2008, would be extended for six years under language adopted by the House on April 21.
The Natural Resources News Service, a nonpartisan organization that focuses on environmental issues, provided the bill language to the Washington Post.
Senators are weighing whether to include the measure in the energy bill that will reach the floor this month.
Environmentalists such as David Friedman, research director for the clean vehicles program of the Union of Concerned Scientists, said that, since its inception in 1993, the flexible-fuel credit has allowed manufacturers to avoid $1.6 billion in federal fines and U.S. gasoline consumption to increase by 4 billion gallons.
"We have no problem with the automakers getting credit for the alternative fuels actually used in vehicles, because that's a good thing," Friedman said. "This pretends that they're selling hybrids when they're selling gas guzzlers."
In 2004, Ford sold more than 240,000 six-cylinder Ford Explorers, 87 percent of which were dual-fuel vehicles. That meant the company got credit for the sport-utility fleet averaging nearly 31 miles per gallon, while it actually averaged closer to 20 miles per gallon.
VeraSun Energy found that 68 percent of flexible-fuel vehicle owners in South Dakota didn't know they could use ethanol. Federal officials say drivers use an 85 percent ethanol fuel blend less than 1 percent of the time.
Link:
http://www.detnews.com/2005/autosins...A04-205211.htm