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Abstract:Since the passage of the Energy Policy Act of 1992, some, albeit limited, progress has been made in acquiring alternative fuel vehicles and reducing the consumption of petroleum fuels in transportation. DOE estimates about 1 million alternative fuel vehicles were on the road in 1999, about 0.4 percent of all vehicles. It also estimates that, in 1998, alternative fuels used in alternative fuel vehicles replaced about 334 million gallons of gasoline, which represents about 0.3 percent of the total gasoline consumed during that year. In addition, about 3.9 billion gallons of alternative fuels (e.g., ethanol and methanol) were blended with gasoline and used in conventional vehicles in 1998. Thus, in total, about 4.23 billion gallons of gasoline were replaced by alternative fuels or approximately 3.6 percent of all highway gasoline use?considerably less than the act?s goal of 10
percent in 2000. Consistent with this data, in a 1999 draft report required by the act for the Congress, DOE concluded that the act?s goals for replacing petroleum fuels with alternative fuels would not be achieved under current conditions. The goals in the act for fuel replacement are not being met principally because alternative fuel vehicles have significant economic disadvantages compared to conventional gasoline vehicles. Fundamental economic impediments-such as the relatively low price of gasoline, the lack of refueling stations for alternative fuels, and the additional cost to purchase these vehicles?explain much of why both mandated fleets and the general
public are disinclined to acquire alternative fuel vehicles and use
alternative fuels. In addition, aspects of the act?s approach do not directly address its goal to replace petroleum fuels.
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