Corn Growers Ask for CAFÉ Extension

April 16, 2002

The National Corn Growers Association (NCGA) is asking the National Highway Traffic Safety Administration (NHTSA) to extend the corporate average fuel economy (CAFE) credit incentives for flexible fuel vehicles through the end of model year 2008.

NCGA supports the extension, because ethanol used in flexible fuel vehicles increases the demand for corn, boosts farm income, enhances energy security and reduces greenhouse gas emissions.

Automakers receive fuel economy credits for producing alternative fuel vehicles. A flexible fuel vehicle is specially designed to run on any ethanol fuel blend up to 85% ethanol. Special on-board diagnostics "read" the fuel blend, enabling drivers to fuel with E85 or gasoline. The computer adjusts the vehicle's fuel injection and ignition timing to compensate for the different fuel mixtures.

NHTSA recently released a report concluding that the CAFE credit program has successfully stimulated increases in the availability of alternative fuel vehicles, stating that there are more than one million of these vehicles -- primarily flexible fuel vehicles -- on the road.

According to automobile manufacturers, such as Ford, the extension of the CAFÉ credits will be a major factor in the decision to continue offering dual fuel vehicles in the numbers that are being produced today.