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Ensign Bill Will Jump Start Alternative Fuels Market

10 March 1998

Ensign Bill Will Jump Start Alternative Fuels Market

    WASHINGTON, March 9 -- Congressman John Ensign (R-Nevada) has
introduced a bill (H.R. 3376) in the U.S. House of Representatives that would
provide much needed tax incentives for the use of natural gas-derived fuels
for vehicles, according to the American Methanol Institute (AMI).
    "The Ensign Bill will make it much more practical for consumers and fleet
managers to buy and operate vehicles that run on methanol and other natural
gas-derived fuels," said AMI President John Lynn.  "We offer our thanks to
Congressman Ensign for the leadership he has shown by introducing a bill that
will jump start the greater use of alternative fuels."
    H.R. 3376 would provide a $.50 federal income tax credit for the purchase
of each gasoline gallon equivalent of methanol, propane, compressed or
liquified natural gas used as a fuel in vehicles placed in service after
December 31, 1997.  The tax credit would expire on December 31, 2004.
    The promotion of clean burning fuels has been a top priority for
Congressman Ensign since his election to Congress in 1994.  He introduced H.R.
3376 on March 5th, and the bill has been referred to the House Ways and Means
Committee, where he is a member.
    "Introduction of the Ensign Bill has helped to solidify the alternative
fuels industry," said Mr. Lynn.  "We have been working closely with our allies
in the Natural Gas Vehicle Coalition and the Propane Vehicle Council to
encourage Congress to provide the tools we need to stimulate the marketplace.
We will now redouble our efforts to ensure that the Ensign Bill receives the
bipartisan support it deserves."
    As an alternative fuel, methanol is used primarily in "flexible fuel
vehicles" capable of running on any combination of methanol and gasoline in
the same tank.  The 1998 Ford Taurus Flexible Fuel Vehicle (FFV) can be
ordered from any Ford dealer in the country, and sells for just $165 more than
the gasoline model.  There are about 15,000 methanol FFVs on the road today,
with most operating in California where there is a network of 100 public and
private methanol refueling stations.
    Methanol also is the fuel of choice for fuel cell vehicles. Methanol fuel
cell vehicles hold the promise of providing vehicles with the same range as
today's internal combustion engine without pollution or noise.  Automakers
from Daimler-Benz and Toyota, to General Motors and Ford are all developing
vehicles that will operate on methanol-powered fuel cells.

SOURCE  American Methanol Institute