Green Energy News | June 8, 1997

June 8, 1997 – Vol.2 No.10

ENERGIES... week of June 8, 1997

ETHANOL:THE ISSUE. Both Ford and Chrysler announced plans recently to build large fleets of Flexible Fuel Vehicles (FFV’s) - sedans, light trucks and minivans with beefed up and adjustable fuel systems capable of burning gasoline or E85 ethanol (85% ethanol, 15% gasoline). The major push for Ford’s 250,000 ethanol FFV’s will begin in 1999. Chrysler will start next year with up to 200,000 FFV minivans annually.

But critics cry foul. They claim these plans are just an adept use of a loophole in the Corporate Average Fuel Economy (CAFE) law which will allow the automakers to put more popular gas guzzlers onto the streets. Ford and Chrysler can take credits for FFV’s to be applied to their CAFE standards. With the credits they can build two additional light trucks or minivans per FFV built.

To counter critics, the automakers are calling for a major push to plant a large number of ethanol pumps to fill up their vehicles. With the current infrastructure, many of the FFV’s may never see a drop of E85 in their tanks. To date there are about 40 (yes, forty) ethanol fueling stations in the entire U.S.

Even if ethanol were available everywhere, consumers might find it disappointing. Vehicles burning E85 get about a third fewer miles per gallon, while the fuel costs about the same as regular unleaded.

To add to the witch’s brew, U.S. Representative Republican Bill Archer of Texas, chairman of the powerful House Ways and Means Committee, would like the see the partial excise tax exemption for ethanol producers disappear. Ethanol industry experts claim the elimination of the tax incentive would kill the industry and the jobs that go along with it. But political realities may prevail. There’s an election in 1998. Voters in largely Republican corn-belt states would be unlikely to vote for a candidate who took away their jobs. Republicans would like to keep their majority in the House.

PROPONENTS OF METHANOL have applauded of Ford’s and Chryslers plans, but would like to see the automakers put the same emphasis on methanol FFV’s as ethanol types. FFV M85 methanol-gasoline cars and minivans have been successfully operating in fleets in California since 1991, with some 14,000 on the road and 58 public methanol refueling stations.