Draft DOT report says Ethanol tax incentives objectives reduce gasoline consumption & increase alternative fuel use

E85 flexible-fuel vehicles run on any mix from 100% gasoline to 15% gasoline + 85% ethanol

1.2M vehicles produced mostly DC minivans, S10 pickups, Taurus & Windstar w/ $200 sensor provided no cost to consumers

Automakers producing E85 vehicles earn credit under Corporate Average Fuel Economy (CAFE) standards

Report recommends tax breaks beyond MY04

Gasoline consumption up because CAFE loophole allows production of more gas-hog SUV/pickups w/o penalty while E85 not actually being used

Ethanol combustion produces more greenhouse gases than gasoline

Issue pits corn-belt states & automakers against environmentalists

Only 101 stations sell E85 of 176K, so most E85 vehicles never use the fuel

"The Bush administration is proposing to extend at 1-fell swoop a loophole that increases our oil addiction, costs consumers billions of dollars a year, manipulates the farmers & increases global warming pollution." -- Daniel Becker, Sierra Club Energy Policy Director

Ethanol produced from distillation of corn or other starchy vegetation