Dear Vice President Cheney:
As you know, the U.S. Department of Transportation is completing its
report to Congress as required by the Alternative Motor Fuels Act of
1988 on the continuation of the alternative fuel vehicle credits
available to automakers that manufacture vehicles capable of operating on
alternative fuels. This has been an excellent policy that has clearly
stimulated the production of vehicles capable of using alternative
fuels.
More than 1.5 million flexible fuel vehicles are currently on the road,
largely due to the fuel economy credits available to manufacturers who
produce these vehicles. The Coalition believes these credits are necessary
and must be extended to achieve market penetration by flexible fuel
vehicles. Without the incentives, alternative fuels, and the supporting
infrastructure to make fuels widely available, may not become fully
established. The Coalition, its partners, and the U.S. Department of
Energy have spent millions of dollars to launch the nation’s ethanol
fueling infrastructure. Consequently, progress in making alternative fuel
vehicle use a viable, cost effective initiative may be jeopardized.
Moreover, the increased demand for ethanol that is generated through the
use of the credits is critically important to the farm economies of the
Coalition’s member states.
Accordingly, on behalf of the Governors’ Ethanol Coalition, I urge that
the Administration complete its report to Congress and support extending
the alternative fuel vehicle credits.
