AFVs help address a number of important national policy goals simultaneously. First, there is urban air pollution. AFVs produce far less NOx, PM and other emissions than diesel and gasoline vehicles on the road today. Second, there is our dependence on foreign oil. With diesel and gasoline prices the highest they have been in years, this problem is again receiving much public attention.
Alternative fuels are the best long-term solution to our growing dependence on foreign oil.
Despite these important advantages, there continue to be a number of critical market barriers impeding the purchase and use of AFVs. While AFVs generally cost less to operate than comparable diesel and gasoline vehicles, their purchase cost generally is greater. In addition, an extensive nationwide fueling infrastructure has been slow to develop. The programs in the Energy Policy Act were intended to provide the economies of scale needed to overcome these problems. However, for a number of reasons recently outlined by the GAO, this has not occurred.