Automotive Fuel Economy Manufacturing Incentives for Alternative Fuel Vehicles

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To provide an incentive for the production of vehicles that can operate on certain alternative fuels as well as on regular petroleum fuels, Congress established a special procedure for calculating the fuel economy of those vehicles for the purpose of determining compliance with the Corporate Average Fuel Economy standards. This procedure increases the fuel economy attributed to such "dual-fueled" vehicles. By statute, the incentive is available through the 2004 model year and may be extended by up to four additional model years through rulemaking. The purpose of this document is to announce the intention to issue a proposal to extend the availability of the incentive for one or more additional model years.