Amendment Increases Ethanol, Biodiesel Use

March 15, 2002

Sens. Charles Grassley (IA) and Mark Dayton (MN) have introduced legislation that would require the federal government to increase the use of ethanol and biodiesel fuels in its vehicles. The amendment applies to the energy bill currently being debated in the Senate.

The amendment requires federal fleet vehicles to use 10% ethanol-blended gasoline but only in areas where there are enough supplies to make the ethanol-blend competitive in price. Federal agencies with centrally fueled fleets will be required to use at least a 2% biodiesel blend in their diesel fuel by 2007 and a 20% biodiesel blend in their diesel fuel by 2012.

For ethanol, the amendment would require federal fleet vehicles to use 10% ethanol-blended gasoline, or gasohol, wherever available, and for biodiesel it would mandate that federal agencies with centrally fueled fleets use at least a 2% biodiesel blend (B2 or higher) in their diesel fuel by 2007. Also, it would require that federal agencies with centrally fueled fleets to use a 20% biodiesel blend (B20) in their diesel fuel by 2012.

The previous energy bill passed in 1992 required federal agencies to purchase a certain proportion of vehicles capable of being fueled by alternative fuels each year. It did not require these agencies to use alternative fuels, however. In 2000, President Clinton issued an executive order aimed at closing this loophole, with the ultimate hope of reducing federal consumption of petroleum by 20% by the end of 2005. This is unlikely to happen; fiscal year 1999 federal fleet consumption of alternative fuels was about 2%.

While the Dayton/Grassley amendment will not mandate the use of alternative fuels, it will mandate increased use of renewable fuels such as 10% ethanol blends and biodiesel.