Tax Incentives & Disincentives

The alternate fuel section explains ethanol, biodiesel, natural gas, propane and hydrogen fuels:

Ethanol is an alcohol-based fuel made by fermenting and distilling starch crops, such as corn. It can also be made from "cellulosic biomass" such as trees and grasses. The use of ethanol can reduce our dependence upon foreign oil and reduce greenhouse gas emissions.

Biodiesel is a form of diesel fuel manufactured from vegetable oils, animal fats, or recycled restaurant greases. It is safe, biodegradable, and produces less air pollutants than petroleum-based diesel.

Natural Gas is a fossil fuel comprised mostly of methane, is one of the cleanest burning alternative fuels. It can be used in the form of compressed natural gas (CNG) or liquefied natural gas (LNG) to fuel cars and trucks.

Flexible fuel vehicles (FFVs) are designed to run on gasoline or a blend of up to 85% ethanol (E85). Except for a few engine and fuel system modifications, they are identical to gasoline-only models.

FFVs have been produced since the 1980s, and dozens of models are currently available. Since FFVs look just like gasoline-only models, you may have an FFV and not even know it. To determine if your vehicle is an FFV, check the inside of your car's fuel filler door for an identification sticker or consult your owner’s manual.

FFVs experience no loss in performance when operating on E85. However, since a gallon of ethanol contains less energy than a gallon of gasoline, FFVs typically get about 20-30% fewer miles per gallon when fueled with E85.

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