Federal Program to
Reduce Oil Consumption Increases It
January 09, 2006 — By Tim Molloy, Associated Press
LOS ANGELES — A federal push for cars
that run on an alternative fuel straight from the heartland isn't
winning many converts among American drivers -- but is a hit with
automakers who use it to skirt mileage standards.
Five million cars across the country are equipped to run on the fuel,
but almost no one uses it outside the corn belt.
Fortunately for carmakers, a 1988 law designed to decrease oil use gives
them credits for building vehicles that run on the alternative fuel
whether anyone uses it or not. Those credits allow automakers to relax
gasoline efficiency standards on other vehicles -- which drives oil
consumption up instead of down.
The situation would be different if many more people replaced the
gasoline in their tanks with the fuel known as E85 -- a combination of
15 percent gasoline and 85 percent ethanol, a corn-based additive.
Flex-fuel cars can run on gas, E85, or combinations of the two.
Ethanol supporters say the extra oil consumption is part of the growing
pains of the flex-fuels program, which they say will decrease oil use
when more E85 fueling stations are available to drivers.
"You've got to get the cars out before you can get the fueling
structure," said Tom Koehler, a spokesman for Fresno-based Pacific
Ethanol.
A 2002 Department of Transportation study estimated that E85 accounted
for only about 1 percent of the fuel consumed by flex-fuel vehicles
between 1996 and 2000 -- the equivalent of 26 million gallons.
Relaxed fuel economy standards resulting from flex-fuel credits,
meanwhile, were responsible for increased petroleum consumption totaling
772 million gallons -- enough gas for a Jeep Grand Cherokee to drive
from San Diego to Boston and back more than 8,000 times.
Often cheaper than gasoline, E85 is known for getting fewer miles to the
gallon but higher octane, resulting in more horsepower.
The fuel works in more than 30 models, including General Motor's Yukon,
Chevrolet's Silverado, and Ford's Taurus, but many people don't know it.
Ford and GM have only recently begun national ad campaigns to promote
their vehicles' flex-fuel capabilities, trying to lure consumers
skittish over gas prices.
Drivers can see if their vehicle will run on E85 by checking the owner's
manual or a Web site, e85fuel.com, that lists compatible models. Ethanol
promoters say motorists are often stunned to learn their cars will run
on the fuel, but even those well-schooled in E85 may need to drive
hundreds of miles to buy it.
At the Los Angeles Auto Show this week, General Motors announced a
partnership with Chevron, California officials and Pacific Ethanol to
gauge the public's interest in E85. Those involved said high interest
could lead to more pumps nationwide.
The GM initiative is only a small step toward the kind of widespread E85
use that the flex-fuel credit program requires, said Roland Hwang, a
senior policy analyst for the National Resources Defense Council.
"If this is the beginning and the end, this is less than a drop of the
bucket," said Hwang. He said the incentive program should end if it
continues to promote rather than discourage oil use.
Therese Langer, transportation program director for the American Council
for an Energy-Efficient Economy, said the program should allow
automakers to reduce fuel efficiency standards only if drivers actually
use E85 in their vehicles. That use could be monitored by tracking E85
sales.
With strong support from automakers, the incentives program was renewed
in the sweeping energy bill President Bush signed in August.
Ethanol's promoters call it a clean-burning fuel that helps farmers in
the nation's corn belt while reducing greenhouse emissions and shifting
the nation's dependence on foreign oil.
"It's 100 percent domestic," said Phillip Lampert, executive director of
the National Ethanol Vehicle Coalition. "We don't have to fight wars to
bring it in."
Critics see the ethanol program as a waste of $3 billion a year in state
and federal subsidies, pointing to a study last year by professors at
Cornell University and the University of California, Berkeley that said
ethanol takes more energy to make than it produces. Ethanol producers
dispute the finding.
GM said in Thursday's announcement it would try to promote the fuel by
offering 50 to 100 of its flex-fuel vehicles to California in the
state's annual competitive bidding process. Chevron will work with the
state to provide E85 fueling pumps, with Pacific Ethanol providing the
E85.
The 2002 federal study offered several scenarios for the flex-fuel
program's future effect on petroleum consumption. If the percentage of
E85 used in flex-fuel vehicles remains at 1 percent from 2001 to 2008,
the amount of petroleum consumed could increase by more than 17 billion
gallons.
The study projected that if every E85-compatible vehicle ran solely on
the fuel in 2006, more than 2.1 billion gallons of oil would be saved
this year.
That scenario, however, is impossible.
Though flex-fuel vehicles are sold nationwide, only 30 states have
public E85 fueling stations. Most are in the corn belt, and some states
have only a handful. California, the nation's largest auto market, has
only one in San Diego.
Tim Gerlach, a spokesman for the American Lung Association of the Upper
Midwest, where E85 is most popular, said the program's success will
depend on the public demanding more cars and fueling stations as they
wait for longer-term fixes to the nation's oil dependency.
"You need more vehicles, better availability of the fuel, and more
awareness," said Gerlach, who owns a flex-fuel Ford Taurus. "Here is
something we can do very easily now."
Source: Associated Press
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