New Administration Policy Increases Oil Dependence And Global Warming

“Today’s decision will only result in a flexible fuels fraud. It allows an SUV that gets 15 miles per gallon on ethanol to count as though its mileage were 100 mpg, even if it only burns gasoline. This regulatory loophole will increase oil consumption and global warming.  It’s bad environmental policy and bad energy policy,” said Environmental Defense automotive engineer John DeCicco.

“The administration’s own studies show the policy will increase oil consumption,” said Environmental Defense economist Eric Haxthausen.  A recent analysis by the National Highway Traffic Safety Administration estimated that extending the alternative fuel credit would increase gasoline consumption by about nine billion gallons, increasing emissions of heat-trapping greenhouse gases by 28 million metric tons.  “At a time when America’s oil dependence is growing and greenhouse gas pollution threatens the Earth’s climate, the administration’s policy is making both problems worse,” added Haxthausen.

The announcement today by the U.S. Department of Transportation (DOT) extends by four years a provision allowing auto manufacturers to receive up to a 0.9 mile per gallon credit against the federal fuel economy standard for producing so-called “flexible fuel” vehicles.   In 2002 alone, automakers sold over 800,000 “dual-fueled” vehicles designed to use “E85” (85% ethanol/15% gasoline) fuel, including almost 400,000 SUVs.  Yet as of January 2004, there were only 182 locations in the U.S. offering this fuel, mostly in Minnesota and the upper Midwest.

“Most such vehicles never use a drop of alternative fuel, and under current policies expanding the supply of such fuels is uneconomic for the foreseeable future,” said DeCicco. “Instead of extending this useless flex-fuel vehicle program, the administration should develop policies that will improve fuel economy and reduce greenhouse gas pollution.”