WASHINGTON, DC -- The Bush ad-ministration is extending incentives that make it easier for automakers to meet CAFE fuel economy requirements by selling vehicles that can run on corn-based ethanol and other alternatives to gasoline, according to a recent CNN report.
Congress enacted the program to encourage people to use alternative fuels. The extension covers vehicles through the 2008-model year, according to the National Highway Traffic Safety Administration (NHTSA). The program, approved by Congress in 1998, originally covered vehicles from the 1993- to 2004-model years.
Critics have called the incentives a failure because most people who buy the dual-fuel vehicles continue to use gasoline instead of the 85-percent ethanol blend that the program was supposed to promote. Now there are only 182 fueling stations that provide ethanol-85 fuel, mostly in the Midwest, according to the government.
Automakers have produced 3.4 million dual-fuel vehicles since 1998 when the incentives went into effect.
Originally posted on Fleet Financials