Assessment of costs and benefits of flexible and alternative fuel use in the US transportation sector. Technical report eight: Impacts on home heating costs of incentives for alternative-fuel vehicles

Technical Report · Fri May 01 04:00:00 EDT 1992

OSTI ID:10169221

The Alternative Motor Fuels Act of 1988 (AMFA, Public Law 100--494) offers incentives in the form of fuel economy credits to manufacturers who produce vehicles capable of using natural gas or alcohol fuels. Specifically, Section 6 of AMFA allows manufacturers to count 1 gallon of alcohol fuel or 1 gallon equivalent of natural gas as only 0.15 gallon of ``fuel`` when calculating the manufacturer`s corporate average fuel economy (CAFE) number. Substitution of natural gas or alcohol fuels for gasoline in the transportation sector is likely to affect the prices of natural gas and distillate oil, which are important sources of energy for home heating. Therefore, Section 9 of AMFA calls for a study of the impact of the manufacturing incentives provision on the cost of home heating. This report provides that analysis. It evaluates and quantifies the possible effects of the CAFE provisions in terms of the following: (1) numbers of alternative- and dual-fuel vehicles that might be built as a result of this provision; (2) consumption of alcohol and natural gas by these vehicles; (3) whether the alcohol or compressed natural gas (CNG) is likely to be derived from domestic resources; (4) the effects on domestic natural gas and home heating oil prices; and, (5) the resulting impact on home heating costs. Only the impacts of manufacturing incentives for dedicated and dual-fuel alcohol-powered automobiles and dedicated and dual-fuel natural-gas-powered automobiles, as described in Section 6 of AMFA, are considered in this study. This report also contributes to the Department of Energy`s comprehensive technical analysis of a flexible-fuel transportation system in the United States. The DOE Altemative Fuels Assessment is aimed directly at questions of energy security and fuel availability, but covers a wide range of issues.

• Research Organization: USDOE Office of Domestic and International Energy Policy, Washington, DC (United States)
• Sponsoring Organization: USDOE, Washington, DC (United States)
• OSTI ID: 10169221
• Report Number(s): DOE/PE--0104P; ON: DE92019088; NC: NONE
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290201
292000
298000
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320200
ALCOHOL FUELS
AUTOMOBILES
AUTOMOTIVE FUELS
COMPARATIVE EVALUATIONS
COMPILED DATA
COMPLIANCE
CONSUMPTION AND UTILIZATION
COST
COST BENEFIT ANALYSIS
ECONOMIC ANALYSIS
ECONOMICS
FORECASTING
FUEL CONSUMPTION
FUEL SUBSTITUTION
GAS FUELS
GOVERNMENT POLICIES
HISTORICAL ASPECTS
MANUFACTURERS
METHANOL FUELS
RESIDENTIAL SECTOR
SALES
STANDARDS
SUPPLY, DEMAND, AND FORECASTING
TRANSPORTATION
TRANSPORTATION SECTOR
TRUCKS
VEHICLES