E85 blend may reduce country's dependence on foreign oil, help air quality.
WASHINGTON -- In an effort to expand the availability of ethanol, General Motors Corp. has struck an agreement with the state of California and Chevron Technology Ventures to bring the alternative fuel E85 to California consumers.
GM officials say the deal could be a turning point for the future of E85, an ethanol-gasoline blend that could reduce the country's dependence on foreign oil.
"We've had vehicles on the road for some time now, but the infrastructure hasn't been there," said Elizabeth Lowery, GM's vice president, environment and energy. "We really need to build the infrastructure in California, and this is the first step."
GM offers nine vehicles that can run on E85: the Chevrolet Tahoe, Suburban, Silverado, Avalanche, Impala and Monte Carlo and the GMC Yukon, Yukon XL and Sierra. GM has sold more than 1.5 million flex-fuel vehicles that run on both gasoline and E85.
Ford Motor Co., DaimlerChrysler AG and Nissan Motor Corp. are also offering flex-fuel vehicles this year.
GM is getting support in the pilot project from California Gov. Arnold Schwarzenegger. California EPA secretary Alan Lloyd said expanded use of E85, a fuel that is a blend of 85 percent ethanol and 15 percent gasoline, could improve air quality, reduce carbon dioxide emissions and help achieve energy independence.
While energy companies have been reluctant to embrace E85 at a time of record profits from oil sales, Chevron Technology Ventures, a subsidiary of oil giant Chevron Corp., will team up to test consumers' acceptance of E85.
Pacific Ethanol, a renewable fuels producer based in Fresno, Calif., said it will open its first ethanol plant in Madera, Calif., later this year. The company plans three more ethanol plants "in the near future," said Pacific Ethanol spokesman Tom Koehler.
With widespread use of E85, California's use of alternative fuels could grow from 900 million gallons today to 2 billion gallons in five years, Koehler said. There is currently only one E85 filling station in California, Koehler said.
Environmental groups have been at odds with the auto industry over plans to offer "flex-fuel" vehicles because, they say, automakers earn credits by selling flex-fuel vehicles that enable them to sell more gas guzzlers.
Longtime critics such as the Union of Concerned Scientists and the Natural Resources Defense Council are supporting GM's pilot project, even while pressing for other improvements on fuel economy.
Without greater vehicle efficiency, there won't be enough land to grow the crops necessary to fuel American vehicles, said Roland Hwang, senior policy analyst with NRDC.
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