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Federal law boosts alternative vehicle fuels

November 27, 1995
Web posted at: 3:00 p.m. EST

From Reporter Yasmin Ghahremani

Christine Ervin

(CNN) -- Under deadlines set by Congress, expect to see an increasing number of vehicles powered by compressed natural gas (CNG) -- a fuel that allows up to 90-percent fewer ozone-depleting gases into the atmosphere and reduces U.S. reliance on overseas sources of oil. The Energy Policy Act of 1992 (EPACT) was enacted to ensure "energy security" but it also "encourages us to develop alternative fuels," said Assistant Energy Secretary Christine Ervin. (200K AIFF sound or 200K WAV sound)

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Under EPACT, federal agencies and state governments have until 1998 to ensure that 75-percent of the new vehicles they purchase are powered by alternative fuels. For fuel providers, such as utility companies, it's 90-percent. But as CNG pumps become a more common sight at gas stations nationwide, oil industry competitors call the development of alternative fuels premature. Such development would only be necessary if the price of oil shot up dramatically, said Michael Canes of the American Petroleum Institute. That determination should be made by the marketplace, not the government, he indicated.

pumping gas

EPACT mandates do not apply to individuals but motorists who want to go the CNG route on their own face a mixed blessing. A gallon of compressed natural gas, which will get you as far as a gallon of gasoline, costs about 30-percent less. But natural gas vehicles are more expensive than regular models and finding a CNG refueling station can be a chore, said Chrysler's Michael Clement. (48K AIFF sound or 48K WAV sound)



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