WATCHING WASHINGTON CONVERTING TO ALTERNATIVES

With Patrick Crow One of the stronger proposals in the Bush administration's National Energy Strategy would require fleet operators in most urban areas to convert to alternative fuel vehicles. The program would apply to fleets of 10 vehicles or more in 22 urban areas with major air pollution problems and to fleets of 20 or more vehicles in about 130 other cities with more than 250,000 population.

March 25, 1991

3 min read

One of the stronger proposals in the Bush administration's National Energy Strategy would require fleet operators in most urban areas to convert to alternative fuel vehicles.

The program would apply to fleets of 10 vehicles or more in 22 urban areas with major air pollution problems and to fleets of 20 or more vehicles in about 130 other cities with more than 250,000 population.

In those cities, fleet operators would have to gradually convert to alternative fuels vehicles. The Department of Energy estimates the program would lead to 5.4 million alternative fueled vehicles and displace 350,000 b/d of oil imports by 201 0.

HERE'S THE PROBLEM

At a Senate energy committee hearing on the proposal last week, Chairman Bennett Johnston (D-La.) summed up the problem with alternative fuels: "The public will not buy alternative fuel vehicles until they are confident they can find alternative fuels as readily, as conveniently, and as cheaply as they now find gasoline. Auto makers and fuel distributors will not invest in the necessary infrastructure until they are assured a market."

Johnston warned that the Bush administration's proposal may be too ambitious.

"It is not like the fleet provision in the Clean Air Act amendments, which affected less than two dozen of our biggest cities. This proposal would affect 43 of the 50 states. It would affect cities and suburbs holding two thirds of our population. It would affect the way goods and services are delivered and the price we pay for them."

Sen. Malcolm Wallop (R-Wyo.) did not like the proposal. "Once again, the federal government proposes to substitute its judgment for that of industry in deciding what technologies are feasible."

Referring to gas pipelines and producers, Wallop said. "I find it interesting that after an almost 40 year effort to remove federal regulation of natural gas, some of the same interests who supported that deregulation effort are now supporting regulation of its use."

The National Association of Fleet Administrators said fleet owners are trying to plan for Clean Air Act requirements but now don't know whether to prepare for those or the administration's proposal.

The Alternative Fuels Association liked the proposal but said more could be done. It was especially enthusiastic about a new bill by Sen. James Jeffords (R-Vt.) that would require refiners to dedicate 10% of their production capacity to domestic nonpetroleum fuels, such as ethanol, by 1998 and 30% by 2010.

BOOSTING NATURAL GAS

Robert Krueger, Texas Railroad Commission chairman, said of all the alternative fuels, only natural gas can lessen import dependence, improve the environment, and compete economically with gasoline.

T. Boone Pickens Jr., general partner of Mesa LP, said Mesa's use of natural gas vehicles has reduced fuel costs by 50% and maintenance by 25%.

He urged President Bush to issue an executive order requiring that only alternative fueled vehicles be bought for federal fleets. There have been reports in Washington that Bush is about to do that anyway.