Eliminating the tariff on ethanol would not only benefit consumers seeking cost-competitive ethanol to fuel their automobiles, it also would eliminate an obstacle facing U.S. auto manufacturers.
Convinced ethanol can provide a renewable, clean-burning alternative to gasoline and gasoline-hybrid cars, General Motors and DaimlerChrysler are introducing a new fleet of vehicles that run on E85, an 85 percent ethanol blend. Currently, most ethanol blend gasoline contains only 10 percent ethanol.
There are currently 5 million flexible fuel vehicles–vehicles that can run on conventional gasoline or E85–on American roads. General Motors offers seven of its automobile, pickup truck, and SUV models in flexible fuel configurations. DaimlerChrysler likewise offers seven of its automobile, pickup truck, and SUV models in flexible fuel configurations, while also offering some of its minivans with E85 compatibility.
Nevertheless, with a 54 cents-per-gallon tariff on the most economical source of ethanol, the environmental and economic benefits of E85 vehicles have yet to reach their full potential.
— James Hoare
For more information …
Live Green, Go Yellow http://www.gm.com/company/onlygm/.
“Chrysler will produce more flex-fuel vehicles,” Automotive News, June 12, 2006: http://www.autonews.com/apps/pbcs.dll/article?aid=/20060612/free/60609061/1124.