Alternative Motor Fuels Act of 1988
PL 100-494 (S.1518), enacted 10/14/1988

PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2441 
Public Law 100-494 
100th Congress 
An Act 
To amend the Motor Vehicle Information and Cost Savings Act to provide for the 
Oct. 14, 1988 
appropriate treatment of methanol and ethanol, and for other purposes. 
[S. 1518] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Alternative Motor Fuels Act of 
1988". 
SEC 2. FINDINGS. 
The Congress finds and declares that— 
(1) the achievement of long-term energy security for the 
United States is essential to the health of the national economy, 
the well-being of our citizens, and the maintenance of national 
security; 
(2) the displacement of energy derived from imported oil with 
alternative fuels will help to achieve energy security and im-
prove air quality; 
(3) transportation uses account for more than 60 percent of 
the oil consumption of the Nation; 
(4) the Nation's security, economic, and environmental in-
terests require that the Federal Government should assist 
clean-burning, nonpetroleum transportation fuels to reach a 
threshold level of commercial application and consumer 
acceptability at which they can successfully compete with 
petroleum-based fuels; 
(5) methanol, ethanol, and natural gas are proven transpor-
tation fuels that bum more cleanly and efficiently than gasoline 
and diesel fuel; 
(6) the production and use as transportation fuels of ethanol, 
methanol made from natural gas or biomass, and compressed 
natural gas have been estimated in some studies to release less 
carbon dioxide than comparable quantities of petroleum-based 
fuel; 
(7) the amount of carbon dioxide released with methanol from 
a coal-to-methanol industry using currently available tech-
nolc^es has been estimated in some studies to be significantly 
greater than the amount released with a comparable quantity 
of petroleum-based fuel; 
(8) there exists evidence that manmade pollution—the release 
of carbon dioxide, chlorofluorocarbons, methane, and other 
trace gases into the atmosphere—may be producing a long term 
and substantial increase in the average temperature on Earth, a 
phenomenon known as global warming through the greenhouse 
effect; and 
Alternative 
Motor Fuels Act 
of 1988. 
Chemicals. 
Energy. 
42 u s e 6201 
note. 
42 u s e 6374 
note. 
102 STAT. 2442 
PUBLIC LAW 100-494—OCT. 14, 1988 
(9) ongoing pollution and deforestation may be contributing 
now to an irreversible process producing unacceptable global 
climate changes; necessary actions must be identified and im-
plemented in time to protect the climate, including the devel-
opment of technol(^es to control increased carbon dioxide 
emissions that result with methanol from a coal-to-methanol 
industry. 
42 use 6374 
SEC. 3. PURPOSE. 
The purpose of this Act is to encourage— 
(1) the development and widespread use of methanol, ethanol, 
and natural gas as transportation fuels by consumers; and 
(2) the production of methanol, ethanol, and natural gas 
powered motor vehicles. 
SEC. 4. AMENDMENT OF ENERGY POLICY AND CONSERVATION ACT. 
(a) AMENDMENT.—Title III of the Energy Policy and Conservation 
Act is amended by adding at the end the following new part: 
"PART J—ENCOURAGING THE USE OF 
ALTERNATIVE FUELS 
42 use 6374. 
"SEC. 400AA. ALTERNATIVE 
FUEL USE BY UGHT DUTY FEDERAL 
VEHICLES. 
"(a) DEPARTMENT OF ENERGY PROGRAM.—(1) B^inning in the 
fiscal year ending September 30, 1990, the Secreta^ shall ensure, 
with the cooperation of other appropriate agencies and consistent 
with other Federal law, that the maximum number practicable of 
the passenger automobiles and light duty trucks acquired annually 
for use by the Federal Government shall be alcohol powered ve-
hicles, dual energy vehicles, natural gas powered vehicles, or natu-
ral gas dual energy vehicles. 
"(2) In any determination of whether the acquisition of a vehicle is 
practicable under paragraph (1), the initial cost of such vehicle to 
the United States shall not be considered as a factor unless the 
initial cost of such vehicle exceeds the initial cost of a comparable 
gasoline or diesel fueled vehicle by at least 5 percent. 
"(3) The Secretary shall, to the extent practicable and consistent 
with this part, ensure that the number of dual energy vehicles 
acquired under this subsection is at least as great as the number of 
alcohol powered vehicles acquired under this subsection, and that 
the number of natural gas dual energy vehicles acquired under this 
subsection is at least as great as the number of natural gas powered 
vehicles acquired under this subsection. To the extent practicable, 
both vehicles capable of operating on alcohol and vehicles capable of 
operating on natural gas shall be acquired in carrying out this 
subsection, and such vehicles shall be supplied by original equip-
ment manufacturers. 
"(b) STUDIES.—(IXA) The Secretary, in cooperation with the 
Environmental Protection Agency and the National Highway Traf-
fic Safety Administration, shall conduct a study of the vehicles 
acquired under subsection (a), which shall at a minimum address— 
"(i) the performance of such vehicles, including performance 
in cold weather and at high altitude; 
"(ii) the fuel economy, safety, and emissions of such vehicles; 
and 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2443 
"(iii) a comparison of the operation and maintenance costs of 
such vehicles to the operation and maintenance costs of other 
passenger automobiles and light duty trucks. 
"(B) The Secretary shall provide a report on the results of the Reports, 
study conducted under subparagraph (A) to the Committees on 
Commerce, Science, and Transportation and Governmental Affairs 
of the Senate, and the Committee on Energy and Commerce of the 
House of Representatives, within one year after the first such 
vehicles are acquired, and annually thereafter. 
"(2XA) The Secretary and the Administrator of the General 
Services Administration shall conduct a study of the advisability, 
feasibility, and timing of the disposal of vehicles acquired under 
subsection (a) and any problems of such disposal. Such study shall 
take into account existing laws governing the sale of Government 
vehicles and shall specifically focus on when to sell such vehicles 
and what price to charge, without compromising studies of the use 
of such vehicles authorized under this part. 
"(B) The Secretary and the Administrator of the General Services Reports. 
Administration shall report the results of the study conducted under 
subparagraph (A) to the Committees on Commerce, Science, and 
Transportation and Governmental Affairs of the Senate, and the 
Committee on Energy and Commerce of the House of Representa-
tives, within 12 months after funds are appropriated for carrying 
out this section. 
"(c) AVAILABILITY TO THE PUBUC.—To the extent practicable, at 
locations where vehicles acquired under subsection (a) are supplied 
with alcohol or natural gas, edcohol or natural gas shall be offered 
for sale to the public. The head of the Federal agency responsible for 
such a location shall consider whether such sale is practicable, 
taking into account, among other factors— 
"(1) whether alcohol or natural gas is commercially available 
for vehicles in the vicinity of such location; 
"(2) security and safety considerations; 
Safety. 
"(3) whether such sale is in accordance with applicable local, 
State, and Federal law; 
"(4) the ease with which the public can access such location; 
and 
"(5) the cost to the United States of such sale. 
"(d) FEDERAL AGENCY USE OF DEMONSTRATION VEHICLES.—(1) 
Upon the request of the head of any agency of the Federal Govern-
ment, the Secretary shall ensure that such Federal agency be 
provided with vehicles acquired under subsection (a) to the maxi-
mum extent practicable. 
"(2XA) Funds appropriated imder this section for the acquisition 
of vehicles under subsection (a) shall be applicable only to the 
portion of the cost of vehicles acquired under subsection (a) which 
exceeds the cost of comparable gasoline or diesel fueled vehicles. 
"(B) The Secretary shall ensure that the cost to any Federal 
agency receiving a vehicle under paragraph (1) shall not exceed the 
cost to such agency of a comparable gasoline or diesel fueled vehicle. 
"(3) Only one-hsdf of the vehicles acquired under this section by an 
agency of the Federal Government shall be counted against any 
limitation under law, Executive order, or executive or agency policy 
on the number of vehicles which may be acquired by such agency. 
"(4) Any Federal agency receiving a vehicle under paragraph (1) 
shall cooperate with studies undertaken by the Secretary under 
subsection (b). 
102 STAT. 2444 
PUBLIC LAW 100-494—OCT. 14, 1988 
"(e) DETAIL OF PERSONNEL.—Upon the request of the Secretary, 
the head of any Federal agency may detail, on a reimbursable basis, 
any of the personnel of such agency to the Department of Energy to 
assist the Secretary in carrjdng out the Secretary's duties under this 
section. 
"(f) EXEMPTIONS.—(1) Vehicles acquired under this section shall 
not be counted in any calculation of the average fuel economy of the 
fleet of passenger automobiles acquired in a fiscal year by the 
United States. 
"(2) The incremental cost of vehicles acquired under this section 
over the cost of comparable gasoline or diesel fueled vehicles shall 
not be applied to any calculation with respect to a limitation under 
law on the maximum cost of individual vehicles which may be 
acquired by the United States. 
(g) DEFINITIONS,—For purposes of this part— 
"(1) the term 'acquired' means leased for a period of sixty 
continuous days or more, or purchased; 
"(2) the term 'alcohol' means a mixture containing 85 percent 
or more by volume methanol, ethanol, or other alcohols, in any 
combination; 
"(3) the term 'alcohol powered vehicle' means a vehicle de-
signed to operate exclusively on alcohol; 
"(4) the term 'dual energy vehicle' means a vehicle which is 
capable of operating on alcohol and on gasoline or diesel fuel; 
'(5) the term 'natural gas dual energy vehicle' means a 
vehicle which is capable of operating on natural gas and on 
g£isoline or diesel fuel; and 
"(6) the term 'natural gas powered vehicle' means a vehicle 
designed to operate exclusively on natural gas. 
"(i) FUNDING.—(1) For the purposes of this section, there are 
authorized to be appropriated for the fiscal year ending Septem-
ber 30, 1990, $5,000,000, for the fiscal year ending September 30, 
1991, $3,000,000, for the fiscal year ending September 30, 1992, 
$2,000,000, and for the fiscal year ending September 30, 1993, 
$2,000,000. 
"(2) The authority of the Secretary to obligate amounts to be 
expended under this section shall be effective for any fiscal year 
only to such extent or in such amounts as are provided in advance 
by appropriation Acts. 
42 u s e 6374a. 
"SEC. 400BB. ALTERNATIVE FUELS TRUCK COMMERCIAL APPLICATION 
PROGRAM. 
"(a) ESTABUSHMENT.—The Secretary, in cooperation with manu-
facturers of heavy duty engines and with other Federal agencies, 
shall establish a commercial application program to study the use of 
alcohol and natural gas in heavy duty trucks and, if appropriate, 
other heavy duty applications. 
"(b) FUNDING.—(1) There are authorized to be appropriated for the 
period encompassing the fiscal years ending September 30, 1990, 
September 30,1991, and September 30,1992, a total of $2,000,000 for 
alcohol powered vehicles and dual energy vehicles, and a total of 
$2,000,000 for natural gas powered vehicles and natural gas dual 
energy vehicles, to carry out the purposes of this section. 
"(2) The authority of the Secretary to obligate amounts to be 
expended under this section shall be effective for any fiscal year 
only to such extent or in such amounts as are provided in advance 
by appropriation Acts. 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2445 
'^EC. 400CC. ALTERNATIVE FUELS BUS PROGRAM. 
42 USC 6374b. 
"(a) TESTING-—^The Secretary, in cooperation with the Adminis- 
State and local 
trator of the Environmental Protection Agency and the Adminis- governments. 
trator of the National EKghway Traffic Safety Administration, shall, 
u^ban areas. 
b^inning in the fiscal year ending September 30,1990, assist State 
and local government agencies in the testing in urban settings of 
buses capsule of operating on alcohol and buses capable of operating 
on natural gas for the emissions levels, durability, safety, and fuel 
economy of such buses, comparing the difTerent types with each 
other and with diesel powered buses, as such buses will be required 
to operate under Federal safety and environmental standards ap-
plicable to such buses for the model year 1991. To the extent 
practicable, testing assisted under this section shall apply to both 
buses capable of operating on alcohol and buses capable of operating 
on natural gas. 
"Ot)) FUNDING.—^There are authorized to be appropriated for the 
period encompassing the fiscal years ending September 30, 1990, 
September 30,1991, and September 30,1992, a total of $2,000,000 to 
carry out the purposes of this section. 
"(c) DEFINITION.—For purposes of this section, the term 'bus' 
means a vehicle which is designed to transport 30 individuals or 
more. 
"SEC. 400DD. INTERAGENCY COBIMISSION ON ALTERNATIVE MOTOR 
42 USC 6374c. 
FUELS. 
"(a) ESTABLISHMENT.—^There is established a Commission to be 
known as the Interagency Commission on Alternative Motor Fuels. 
"(b) MEMBERSHIP.—The Commission shall be composed of mem-
bers as follows: 
"(1) the Secretary of Energy, or the designee of the Secretary, 
who shall be the chairperson of the Commission; 
"(2) the Secretary of Defense or the designee of such 
Secretary; 
"(3) the Administrator of the Environmental Protection 
Agency or the designee of such Administrator; 
"(4) the Secretaiy of Transportation or the designee of such 
Secretary; 
"(5) the Postmaster General or the designee of the Postmaster 
General; 
"(6) the Administrator of the General Services Administra-
tion or the designee of such Administrator; 
"(7) the Adnunistrator of the Occupational Safety and Health 
Administration or the designee of such Administrator; and 
"(8) such other officers and employees of the Federal Govern-
ment as may be appointed to the Commission by the President. 
"(c) OPERATIONS.—(1) The Commission shall meet r^ularly as 
necessary to cany out the purposes of this section. Meetings shsdl be 
at the call of the chairperson of the Commission. The Commission Reports. 
shall meet to consider any report of the Commission before such 
report is submitted to the Congress. 
'(2) The Secretary shall provide the Commission with such staff 
and office facilities as the Secretary, following consultation with the 
Commission, considers necessary to permit the Commission to carry 
out its functions under this section. 
"(3) Subject to applicable law, all expenses of the Commission 
shall be paid from funds available to tiie Secretary, except that 
102 STAT. 2446 
PUBLIC LAW 100-494—OCT. 14, 1988 
salaries of Commission members shall be paid by their home 
agencies. 
"(d) FUNCTIONS.—(1) The Commission shall coordinate Federal 
agency efforts to develop and implement a national alternative 
motor fuels poUcy. 
"(2) The Conmiission shall ensure the development of a long-term 
plan for the commercialization of alcohols, natural gas, and other 
potential alternative motor fuels. 
"(3) The Commission shall ensure communication among rep-
resentatives of all Federal agencies that are involved in alternative 
motor fuels projects or that have an interest in such projects. 
"(4) The Commission shall provide for the exchange of informa-
tion among persons working with, or interested in working with, the 
commercialization of alternative motor fuels. 
"(e) UNITED STATES ALTERNATIVE FUELS COUNCIL.—(1) The chair-
person of the Commission shall, consistent with the Federal Ad-
visory Committee Act, establish a United States Alternative Fuels 
CouncU to report to the (Commission about matters related to alter-
native motor fuels. 
"(2) The Council shall be composed of members as follows: 
"(A) one Member of the House of Representatives appointed 
by the Speaker of the House of Representatives; 
"(B) one Member of the House of Representatives appointed 
by the Minority Leader of the House of Representatives; 
"(C) one Member of the Senate appointed by the Majority 
Leader of the Senate; 
"(D) one Member of the Senate appointed by the Minority 
Leader of the Senate; and 
"(E) 16 persons from the private sector or from State or local 
government who are knowledgeable about alternative motor 
fuels and their possible uses and the production of alternative 
motor fuels and vehicles powered by such fuels, to be appointed 
by the chairperson of the (Dommission. 
"(3) The (Council shall meet at the call of the chairperson of the 
Commission. 
"(f) DETAIL OF FEDERAL PERSONNEL.—Upon request of the CJommis-
sion, the head of any Federal agency may detail, on a reimbursable 
basis, any of the personnel of such agency to the Commission to 
assist the Commission in carrying out its duties under this section. 
"(g) REPORTS.—(1) The Commission shall, not later than Septem-
ber 30 of each of the years 1990 and 1991, submit an interim report 
to the C!ommittees on 0>mmerce, Science, and Transportation and 
(jrovemmental Affairs of the Senate, and the CJommittee on Energy 
and Commerce of the House of Representatives, setting forth the 
actions taken by the dJommission under this section. 
"(2) The Commission shall, not later than September 30, 1992, 
submit a final report to the (Committees on (Commerce, Science, and 
Transportation and Governmental Affairs of the Senate, and the 
(Committee on Energy and Commerce of the House of Representa-
tives, setting forth the actions taken by the (Commission under this 
section. 
"(h) TERMINATION.—^The Commission and the Council shall termi-
nate upon submission of the final report of the Commission under 
subsection (gX2). 
"(i) DEFINITIONS.—For purposes of this section— 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2447 
"(1) the term 'Commission' means the Interagency Commis-
sion on Alternative Motor Fuels established in subsection (a); 
and 
"(2) the term 'Council' means the United States Alternative 
Fuels CouncU established under subsection (eXD-
"SEC. 400EE. STUDIES AND REPORTS. 
"(a) METHANOL STUDY.—(1) The Secretary shall study methanol 
plants, including the costs and practicability of such plants, that 
are— 
"(A) capable of utilizing current domestic supplies of 
unutilized natural gas; 
"(B) relocatable; or 
"(C) suitable for natural gas to methanol conversion by natu-
ral gas distribution companies. 
"(2) For purposes of this subsection, the term 'unutilized natural 
gas' means gas that is available in small remote fields and cannot be 
economically transported to natural gas pipelines, or gas the quality 
of which is so poor that extensive and uneconomic pretreatment is 
required prior to its introduction into the natural gas distribution 
sjrstem. 
"(3) The Secretary shall submit a report under this subsection to 
the Committees on Conmierce, Science, and Transportation and 
Grovemmental Affairs of the Senate, and the Committee on Energy 
and Commerce of the House of Representatives, no later than 
September 30,1990. 
"(b) INDEPENDENT B^NVIRONMENTAL STUDY.—(1) The Administrator 
of the Environmental Protection Agency shall submit to the 
Committees on Commerce, Science, and Transportation and Govern-
mental Affairs of the Senate, and the Committee on Energy and 
Conmierce of the House of Representatives, in December of 1990, 
and once every two years thereafter, a report which includes— 
"(A) a comprehensive analysis of the air quality, global cli-
mate change, and other positive and n^ative environmental 
impacts, if any, including fuel displacement effects, associated 
with the production, storage, distribution, and use of all alter-
native motor vehicle fuels under the Alternative Motor Fuels 
Act of 1988, as compared to gasoline and diesel fuels; and 
"(B) an extended reasonable forecast of the change, if any, in 
air quality, global climate change, and other environmental 
effects of producing, storing, distributing, and using alternative 
motor vehicle fuels, utilizing such reasonable energy security, 
poUcy, economic, and other scenarios as may be appropriate. 
"(2) In carrying out the study under this subsection, the Adminis-
trator of the Environmental Protection Agency shall consult with 
the Secretaries of Energy and Transportation. Nothing in this para-
graph shall be construed to require such Administrator to obtain the 
approval of the Secretary of Energy or the Secretary of Transpor-
tation for any actions taken under this subsection. 
"(3) There are authorized to be appropriated to carry out the 
purposes of this subsection $500,000. 
"(c) PuBuc PARTICIPATION.—Adequate opportunity shall be pro-
vided for pubUc comment on the reports required by this section 
before they are submitted to the Congress, and a summary of such 
comments shall be attached to such reports.". 
42 u s e 6374d. 
Appropriation 
authorization. 
102 STAT. 2448 
PUBLIC LAW 100-494—OCT. 14, 1988 
42 use 6374 
(b) CESSATION OF EFFECT.—This section, and the amendmenta 
note. 
made by this section, shall cease to be effective after September 30, 
1997. 
42 use 6374 
SEC. 5. USE OF NONSTANDARD FUELS. 
No guaranty or warranty with- respect to any passenger auto-
mobile or light-duty truck acquired by the United States after 
October 1, 1989, shedl be voided or reduced in effect by reason of the 
operation of such vehicle with any fuel for which a currently 
effective waiver, which includes a limitation regarding Reid vapor 
pressure with respect to such fuel, has been issued by the Adminis-
trator of the Environmental Protection Agency under section 211(f) 
of the Clean Air Act (42 U.S.C. 7545(0). 
SEC. 6. AMENDMENT OF THE MOTOR VEHICLE INFORMATION AND COST 
SAVINGS ACT. 
(a) FUEL ECONOMY OF ALTERNATIVE FUEL AUTOMOBILES.—Title V 
of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 
2001 et seq.) is amended by adding at the end the following new 
section: 
"MANUFACTURING INCENTIVES FOR AUTOMOBILES 
15 use 2013. 
"SEC. 513. (a) ALCOHOL POWERED AUTOMOBILE.—If a manufacturer 
manufactures any model type of alcohol powered automobile, the 
fuel economy measured for that model type shall be based on the 
fuel content of the alcohol used to operate such automobile. For 
purposes of this section, a gallon of alcohol used to operate such 
automobile shall be considered to contain 15 one-hundredths of a 
gallon of fuel. 
"(b) DUAL ENERGY AUTOMOBILE.—If a manufacturer manufactures 
any model type of dual energy automobile, the fuel economy meas-
ured for that model type shall be measured by the EPA Adminis-
trator byjiividin^ LP_by the^um^of— 
^(l)~Ui5 divided by the fuel economy as measured under 
section 503(d) while operating such model type on gasoline or 
diesel fuel; and 
"(2) 0.5 divided by the fuel economy as measured under 
subsection (a) of this section while operating such model type on 
alcohol. 
"(c) NATURAL GAS POWERED AUTOMOBILE.—If a manufacturer 
manufactures any model tjrpe of natural gas powered automobile, 
the fuel economy measured for that model tjrpe shall be based on the 
fuel content of the natural gas used to operate such automobile. For 
purposes of this section, 100 cubic feet of natural gas shall be 
considered to contain 0.823 gallons equivalent of natural gas, and a 
gallon equivalent of natural gas shall be considered to have a fuel 
content of 15 one-hundredths of a gallon of fuel. 
"(d) NATURAL GAS DUAL ENERGY AUTOMOBILE.—If a manufacturer 
manufactures any model type of natural gas dual energy auto-
mobile, the fuel economy measured for that model type shall be 
measured by the EPA Administrator by dividing 1.0 by the sum of— 
"(1) 0.5 divided by the fuel economy as measured under 
section 503(d) while operating such model type on gasoline or 
diesel fuel; and 
"(2) 0.5 divided by the fuel economy as measured under 
subsection (c) of this section while operating such model type on 
natural gas. 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2449 
"(e) FUEL ECONOMY CALCULATION.—The EPA Administrator shall * 
calculate, subject to the provisions of this section, the manufactur-
er's average fuel economy under section 503(a) (1) and (2) by includ-
ing as the denominator of the term for each model type of alcohol 
powered automobile, dual energy automobile, natural gas powered 
automobile, or natural gas dual energy automobile, the fuel econ-
omv measured pursuant to subsections (a) through (d) of this section. 
(f) APPUCABILITY.— 
"(1) Except £is otherwise provided in this subsection, subsec-
tions (b) and (d) shall apply only to automobiles manufactured 
in model year 1993 through model year 2004. Subsections (a) 
and (c) shall apply only to automobiles manufactured after 
model year 1992. 
"(2XA) Not later than September 30, 2000, the Secretary, in Reports, 
consultation with the Secretary of Energy and the EPA 
Administrator, shall complete and submit to the Committees on 
Commerce, Science, and Transportation and (Jovemmental Af-
fairs of the Senate, and the Committee on Energy and Com-
merce of the House of Representatives, a report containing the 
results of a study of the success of the policy contained in 
subsections (b) and (d), along with preliminary conclusions £is to 
whether the application of such subsections should be extended 
for up to four additional model years. Such study and conclu-
sions shall be prepared taking into consideration— 
"(i) the availability to the public of alcohol powered 
automobiles, natural gas powered automobiles, and alter-
native fuels; 
"(ii) energy conservation and security; 
"(iii) environmental considerations; and 
"(iv) other relevant factors. 
"(B) The Secretary shall— 
"(i) promulgate a rule to extend the applicability of 
subsections Ot)) and (d) for 4 or fewer consecutive model 
years immediately after model year 2004; or 
"(ii) publish a notice explaining the reasons for not 
promulgating such rule. Such rule or notice shall be 
promulgated before January 1, 2002. 
Any such promulgated rule shall explain the b£isis on which any 
such extension has been granted. 
"(g) MAXIMUM INCREASE.— 
"(IXA) For each of the model years 1993 through 2004, for 
each category of automobiles the maximum increase in average 
fuel economy for a manufacturer attributable to dued energy 
automobiles and natural gas dual energy automobiles shall be 
1.2 miles per gallon. 
"(B) If the application of subsections (b) and (d) is extended 
under subsection (fK2), for each category of automobiles the 
maximum increase in average fuel economy for a manufacturer 
for each of the model years 2005 through 2008 attributable to 
dual energy automobiles and natural gas dual energy auto-
mobiles shall be 0.9 miles per gallon. 
"(C) For purposes of applying subparagraph (A) or (B), the 
EPA Administrator shall compute the increeise in a manufac-
turer's average fuel economy attributable to dual energy auto-
mobiles and natural gas dual energy automobiles by subtracting 
from the manufacturer's average fuel economy calculated under 
subsection (e) the number equal to what the manufacturer's 
102 STAT. 2450 
PUBLIC LAW 100-494—OCT. 14, 1988 
average fuel economy would be if it were calculated by the 
formula in section 503(a) (1) and (2) by including as the denomi-
nator for each model type of dual energy automobile or natural 
gas dual energy automobile the fuel economy when such auto-
mobiles are operated on gasoline or diesel fuel. If the increase 
attributable to dual energy automobiles and natural gas dual 
energy automobiles for any model year described in subpara-
graph (A) is more than 1.2 miles per gallon, the limitation in 
subparagraph (A) shall apply, and if the increase attributable to 
such automobiles for any model year described in subparagraph 
(B) is more than 0.9 miles per gallon, the limitation in subpara-
graph (B) shall apply. 
"(2XA) Notwithstanding any other provision of this section, if 
the Secretary reduces the average fuel economy standard ap-
plicable to passenger automobiles for any model year below 27.5 
miles per gallon, any increase in average fuel economy for 
passenger automobiles of more than 0.7 miles per gallon to 
which a manufacturer of dual energy passenger automobiles or 
natural gas dual energy passenger automobiles would otherwise 
be entitled in that year under this section shaU be reduced by 
an amount equal to the amount of such reduction in the stand-
ard, except that such increase shall not be reduced to less than 
0.7 miles per gallon. 
"(B) In carrying out section 502 (aX4) and (f), the Secretary 
shall not consider the fuel economy of alcohol powered auto-
mobiles or natural gas powered automobiles, and the Secretary 
shall consider dual e n e i ^ automobiles and natural gas dual 
energy automobiles to be operated exclusively on gasoline or 
diesel fuel. 
"(h) DEFINITIONS.—(1) For purposes of this title— 
"(A) the term 'alcohol' means a mixture contsuning 85 percent 
or more by volume methanol, ethanol, or other alcohols, in any 
combination; 
"(B) the term 'alcohol powered automobile' means an auto-
mobile designed to operate exclusively on alcohol; 
"(C) the term 'dual energy automobile' means an auto-
mobile— 
"(i) which is capable of operating on alcohol and on 
gasoline or diesel fuel; 
"(ii) which provides equal or superior energy efficiency, 
as calculated for the applicable model year during fuel 
economy testing for the Federal Government, while operat-
ing on alcohol as it does while operating on gasoline or 
diesel fuel; 
"(iii) which, for model years 1993 through 1995, and, if 
the Administrator of the Environmental Protection Agency 
determines that an extension of this clause is warranted, 
for an additional period ending not later than the end of the 
last model year for which section 513 (b) and (d) applies, 
provides equal or superior energy efficiency, as calculated 
for the applicable model year during fuel economy testing 
for the Federal Government, while operating on a mixture 
of alcohol and gasoline or diesel fuel containing exactly 50 
percent gasoline or diesel fuel as it does while operating on 
gasoline or diesel fuel; and 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2451 
"(iv) which, in the case of passenger automobiles, meets 
or exceeds the minimum driving range established pursu-
ant to paragraph (2); 
"(D) the term 'natural gas dual energy automobile' means an 
automobile— 
"(i) which is capable of operating on natural gas and on 
gasoline or diesel fuel; 
"(ii) which provides equal or superior energy efficiency, 
as calculated for the applicable model year during fuel 
economy testing for the Federal Grovemment, while operat-
ing on natural gas as it does while operating on gasoline or 
diesel fuel; and 
"(iii) which, in the case of passenger automobiles, meets 
or exceeds the minimum driving range established pursu-
ant to paragraph (2); and 
"(E) the term 'natural gas powered automobile' means an 
automobile designed to operate exclusively on natural gas. 
"(2XA) For purposes of the definitions in paragraphs (1) (C) and 
(D), the Secretary shall, within 18 months after the date of enact-
ment of this section, establish by rule of genersd applicability for all 
manufacturers a minimum driving range which must be met by 
dual energy automobiles when operating on alcohol, and by natural 
gas dual eneigy automobiles when operating on natural gas, if such 
automobiles are to be considered dual energy automobiles or natural 
gas dual energy automobiles under this section. Subject to the 
provisions of th^ paragraph, the rule may be amended from time to 
time. Any determination of whether dual e n e i ^ automobiles or 
natural gas dual energy automobiles meet the minimum driving 
range requirement under this paragraph shall be based on the 
combined EPA city/highway fuel economy as determined for aver-
age fuel economy purposes for such automobiles. The rule issued 
under this subparagraph shall apply only to dual energy auto-
mobiles and natural g£is dual energy automobiles that are passenger 
automobiles. 
"(BXi) The general rule established under subparagraph (A) shall 
allow the Secretary to determine that a specific model tjrpe or types 
may have a lower range than that established by the general rule, 
and shall allow a manufacturer to petition for a specific model tyx)e 
or types to have a lower range than that established by the general 
rule. 
"(ii) If, with respect to dual energy automobiles, the Secretary 
establishes under subparagraph (A) 200 miles as the generally ap-
plicable minimum driving range under this paragraph, clause (i) 
shall not apply to dual energy automobiles. 
"(C) Under no circumstances shall the general rule established 
under subparagraph (A) establish a minimum driving range of less 
than 200 miles for dual energy automobiles, nor shall the Secretary 
approve under the procedure referred to in subparagraph (B) a 
minimum driving range of less than 200 miles for dual energy 
automobiles. 
"(D) In establishing the general rule under subparagraph (A), and 
in taking any action under the procedure referred to in subpara-
graph (B), the Secretary shall take into account the purposes of the 
Alternative Motor Fuels Act of 1988, consumer acceptability, eco-
nomic practicability, technology, environmental impact, safety, 
driveability, performance, and any other factors the Secretary 
considers relevant.". 
102 STAT. 2452 
PUBLIC LAW 100-494—OCT. 14, 1988 
15 use 2512 
note. 
Public 
information. 
Consumer 
protection. 
(b) DEFINITION OF AUTOMOBILE.—Section 501(1) of the Motor 
Vehicle Information and Cost Savings Act (15 U.S.C. 2001(1)) is 
amended by inserting ", or by alcohol or natural gas," after "fuel" 
the first time it appears. 
(c) CONFORMING AMENDMENT.—Section 502(e) of the Motor 
Vehicle Information and Cost Savings Act (15 U.S.C. 2002(e)) is 
amended by adding at the end the following: "For purposes of this 
subsection, the Secretary shall not consider the fuel economy of 
alcohol powered automobiles or natural gas powered automobiles, 
and the Secretary shall consider dual energy automobiles and natu-
ral gas dual energy automobiles to be operated exclusively on 
gasoline or diesel fuel.". 
SEC. 7. ELECTRIC VEHICLES. 
(a) STUDY.—The Secretary of Transportation, in consultation with 
the Secretary of Energy, shall conduct a comprehensive study and 
investigation r^arding whether r^ulations in effect on the date of 
enactment of this Act should be amended or additional r^^lations 
should be promulgated to stimulate the production and introduction 
of electric vehicles into commerce. The Secretary of Transportation, 
in consultation with the Administrator of the Environmental 
Protection Agency, shall include as part of the comprehensive study, 
information regarding the effect of electric vehicles on air quality. 
Such study shall also consider the feasibility and desirability of 
r^ulations to stimulate the production and introduction of solar 
powered vehicles into commerce. The Secretary of Transportation 
shall transmit the results of such study to the Committees on 
Commerce, Science, and Transportation and Governmental Affairs 
of the Senate, and the Committee on Energy and Commerce of the 
House of Representatives, not later than one year after the date of 
enactment of this Act. 
(b) REGULATIONS.—If, as a result of the study conducted under 
subsection (a), the Secretary of Transportation, the Secretary of 
Energy, or the Administrator of the Environmental Protection 
Agency determines that regulations under their respective jurisdic-
tions should be amended, or that additional regulations should be 
promulgated, such Secretary or Administrator shall, if so au-
thorized, commence a rulemaking proceeding for such purpose. 
SEC. 8. AUTOMOBILE LABELING. 
(a) AMENDMENTS.—(1) Section 506(a) of the Motor Vehicle 
Information and Cost Savings Act (15 U.S.C. 2006(a)) is amended by 
adding at the end the following new paragraph: 
"(4XA) In the case of alcohol powered automobiles or natural gas 
powered automobiles, the fuel economy of such automobiles for 
purposes of paragraph (IXAXi) shall be the fuel economy for such 
automobiles when operated on alcohol or natural gas, as the case 
may be, measured under section 513 (a) or (c), multiplied by 0.15. 
(B) In the case of dual energy automobiles or natural gas dual 
energy automobiles, each label required under paragraph (1) shall— 
"(i) indicate the fuel economy of such automobile when 
operated on gasoline or diesel fuel; 
"(ii) clearly identify such automobile as a dual energy auto-
mobile or natural gas dual energy automobile, as the case may 
be; 
"(iii) clearly identify the fuels on which such automobile may 
be operated; and 
PUBLIC LAW 100-494—OCT. 14, 1988 
102 STAT. 2453 
"(iv) contain a statement informing the consumer that the 
additional information required by subsection (bX3) is published 
and distributed by the Department of Energy.". 
(2) Section 506(b) of such Act (15 U.S.C. 2006(b)) is amended by 
adding at the end the following new paragraph: 
"(3XA) In the case of dual energy automobiles and natural gas 
dual energy automobiles, additioned information shall be contained 
in the booklet published under paragraph (1) indicating— 
"(i) the energy efficiency and cost of operation of such auto-
mobiles when operated on gasoline or diesel fuel as compared to 
such automobiles when operated on alcohol or natural gas, as 
the case may be; and 
"(ii) the driving range of such automobiles when operated on 
gasoline or diesel fuel as compared to such automobiles when 
operated on alcohol or natural gas, as the case may be. 
"(B) In the case of dual energy automobiles, the booklet published 
under paragraph (1) shall also contain— 
"(i) information r^arding the miles per gallon achieved by 
such automobiles when operated on alcohol; and 
"(ii) a statement of explanation of how the information made 
available pursuant to this paragraph can be expected to change 
when such automobile is operated on mixtures of alcohol and 
gasoline or diesel fuel.", 
(b) EFFECTIVE DATE.—^The amendments made by subsection (a) 
15 use 2006 
shall not apply with respect to any model year, as such term is "»*« 
defined in section 501(12) of the Motor Vehicle Information and C!ost 
Savings Act (15 U.S.C. 2001(12)), before model year 1993. 
SEC. 9. STUDY ON BESIDENTIAL ENERGY PRICING. 
Reports. 
15 u s e 2013 
The Secretary of Energy, in consultation with the Secretary of note. 
Transportation, shall study and report to the (Hommittees on (Jom-
merce. Science, and Transportation and Governmental Affairs of 
the Senate, and the Committee on Energy and Commerce of the 
House of Representatives, not later than December 1, 1989, on 
whether calculating the average fuel economy of vehicles as pro-
vided in this Act and the amendments made by this Act is likely to 
result in a significant increase in the average price of home heating 
to residential consumers. Such report shall be updated and submit-
ted to the C!onunittees on Commerce, Science, and Transportation 
and Governmental Affairs of the Senate, and the CJommittee on 
Energy and Commerce of the House of Representatives, not later 
than December 1,1994. 
Approved October 14, 1988. 
LEGISLATIVE HISTORY—S. 1518 {See H.R. 3399): 
HOUSE REPORTS: No. 100-476 accompanying H.R. 3399 (Comm. on Energy and 
Commerce) and No. 100-929 (Comm. of Conference). 
SENATE REPORTS: No. 100-271 (Comm. on Commerce, Science, and Transporta-
tion). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): Dec. 14, H.R. 3399 considered and passed House. 
Vol. 134 (1988): Apr. 15, S. 1518 considered and passed Senate. 
June 28, considered and passed House, amended. 
Sept. 20, Senate agreed to conference report. 
Sept. 23, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Oct. 14, Presidential remarks.