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NHTSA Extends Dual-Fuel Credit Incentive

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Category: Energy
Type: News
Source: US Department of Energy (AFDC)
Date: Tuesday, March 9th, 2004

DOT has extended until 2008 the incentive for dual-fuel vehicles. The act increases the fuel economy values for dual-fuel vehicles. The Countrywide Hwy. Traffic Safety Administration expects that this extension will provide an incentive for manufacturers to increase production of dual-fuel vehicles. It also means that the U.S. vehicle fleet will have greater capability to operate on ethanol, and gives Congress, other federal agencies, regional authorities, and the private sector more time to identify, adopt, and implement measures to enhance the alternative fuel infrastructure.

To date, 3.4 million dual-fueled vehicles have been produced. The act is also intended to encourage the development of alternative fuel retail. Currently, 182 retail outlets nationwide offer E85 fuel. The higher values make it easier for a manufacturer to comply with the Corporate Average Fuel Economy 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 accessible to the public in the DOT docket (Docket Number NHTSA 2001-10774).

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