Overview

By 1999, increased concentrations of air toxics across parts of Minnesota had exceeded health guidelines and increased the risk of cancer, according to a study published that year by the Minnesota Pollution Control Agency (MPCA). As the MPCA observed, a major source of this air pollution comes from cars, trucks, and other vehicles. Minnesota is not alone in addressing this concern. Nationally, car manufacturers and government are looking more closely at adopting cleaner fuels and tightening tailpipe emission standards. Two options gaining popularity are ethanol-fueled and hybrid electric vehicles.

Ethanol
Ethanol fuel is most commonly made from corn products, a renewable fuel source that can be grown year after year. Today, Minnesota is home to 14 ethanol plants producing more than 330 million gallons of ethanol per year. Ethanol production supports our local agricultural economy while reducing our dependency on foreign oil.

Although the concept of ethanol as a fuel began as early as the first Model T car, Americans did not begin using ethanol-blended gasoline until the late 1970s. Ethanol first penetrated the market with the introduction of "gasohol," which is gasoline blended with 10% ethanol. A more recent advance is gasoline blended with 85% ethanol, known as E85. The introduction of E85 has led to the development of Flexible Fuel vehicles (FFV). Virtually identical to regular gasoline vehicles in other respects, FFVs can operate solely on E85, unleaded gasoline, or a mixture of the two. This ability gives drivers the flexibility and convenience of refueling with either fuel.

E85 has many advantages. The fuel has been shown to reduce emissions of carbon monoxide, ozone-forming hydrocarbons, carbon dioxide (a contributor to global warming), and benzene - listed in the 1999 MPCA study as one of the air toxics of particular concern in Minnesota. Additionally, ethanol is a natural source of octane, replacing harmful chemicals typically used in gasoline. While E85 may result in small increases in formaldehyde emissions, overall the toxic potency is less than that of conventional gasoline.

Many governments have chosen to buy flexible fuel vehicles that can operate on E85. In 1999, in fact, the U.S. Postal Service purchased 21,000 FFVs for its neighborhood delivery vehicles - and more than 100 of these FFVs are used in Minnesota. Some state agencies are following this example. In 2000, Minnesota state agencies were using about 800 FFVs. In 2002, the Minnesota Department of Transportation is meeting federal requirements in this area: 75% of its new purchases of light duty trucks in the Metro and Duluth areas are FFVs. Today, nearly 100,000 FFVs are registered and driven statewide by Minnesotans, including government employees.

Hybrid Electric
Hybrid Electric Vehicles (HEVs) combine the advantages of traditional, gasoline-fueled vehicles with those of electric vehicles. With a propulsion system that has the range and power that consumers demand, HEVs reduce air pollution and increase fuel economy. Depending on technology development and consumer preferences, many designs are possible.

Far from being a new concept, the hybrid electric vehicle was first patented in 1905. The patent called for an electric motor to augment a gasoline engine. By the time the patent was issued, three and half years later, the gasoline engine had gained momentum leaving this great innovation all but forgotten. Despite a flurry of activity in the mid-1970s due to the era's international oil crisis, HEVs lay dormant until recent federal mandates required the phased-in adoption of cleaner burning vehicles.

In 2002, the Minnesota Department of Transportation is in the process of purchasingThe act and the function of responsibility for the acquisition of equipment, materials, supplies, and services. In a narrow sense, the term describes the process of buying. In a broader sense, the term describes determining the need, selecting the supplier, arriving at a fair and reasonable price and terms, preparing the contract or purchase order, and following up to ensure timely delivery. and testing electric hybrid cars.

Laws & Guidelines

The Federal Clean Air Act amendments of 1990 and the Federal Energy Policy Act of 1992 mandate the phased-in adoption of cleaner burning vehicles in certain metropolitan areas with high levels of air pollution. Additionally, Executive Order 13031 requires that federal agencies purchase alternative fuel vehicles as 75 percent of their fleets after 1999. Local governments are encouraged to adopt similar practices.

Figure 1: Passenger Car Emissions Reductions

Standard	HC	CO	NOx
Transitional Low-Emission Vehicle (TLEV)	50%	-	-
Low-Emission Vehicle (LEV)	70%	-	50%
Ultra-Low-Emission Vehicle (ULEV)	85%	50%	50%
Super-Ultra-Low-Emission Vehicle (SULEV)	96%	70%	95%
Zero-Emission Vehicles (ZEV)	100%	100%	100%

Performance

Ethanol
FFVs have been used in Illinois since 1992, according to the state's fleet manager, Barbara Bonansinga. As of 1998, the department had purchased nearly 600 FFVs, representing 19% of the passenger vehicles in the state fleet. Based on vehicles driven 80,000 miles, the department has found that most repair costs for FFVs are similar to those for conventional vehicles. The average fuel efficiency for a conventional Taurus vehicle was 25.5 miles per gallon while a Taurus FFV averaged 23.5 miles per gallon. To date, the cars have received high marks for driving, engine-wear, and maintenance and repair.

Hybrid Electric
The California Air Resources Board sets standards for low emissions vehicles. Although specific to California, these standards are used by other states to make vehicle comparisons. Passenger cars and light-duty trucks certified to California's low-emission vehicle standards provide emissions reductions when compared to the basic standard. See Figure 1 in Law & Guidelines.

Today, two mass-produced HEVs are sold in the United States: the Honda Insight and the Toyota Prius. Both vehicles meet the federal Ultra-Low-Emission standard. According to their manufacturers, these vehicles average between 60 and 70 miles per gallon and should not require additional maintenance or operational costs compared to a conventional vehicle.

The Honda Insight offers a 1.0 liter, 3 cylinder engine and the Toyota Prius a 1.5 liter, 4 cylinder engine. Both are augmented by a nickel-metal hydride battery. Each has a maximum speed of 100 mph (engine and motor combined), and an average fuel efficiency of 66 mpg (combined city/highway). For more information on the Honda Insight, including specifications and features, visit www.honda.com. For more information on the Toyota Prius, visit www.toyota.com.

Availability

Flexible Fuel Vehicles (FFVs) and Ethanol
Since early adoption of the technology by Ford, Chrysler, and General Motors, the market for E85 vehicles has expanded. Manufacturers currently offering models with E85 fuel as a standard feature include:

Daimler Chrysler

• Caravan cargo vans, 2003 (3.3 liter engine, select models)
• Caravan minivans, 1998-2002 (3.3 liter engine, all models)
• Sebring sedans, 2003 (2.7 liter engine, all models)
• Stratus sedans, 2003 (2.7 liter engine, all models)
• Town & Country minivans, 1998-2002 (3.3 liter engine, all models)
• Voyager minivans, 1998-2002 (3.3 liter engine, all models)

Ford Motor Company

• Explorers, 2002 (4.0 liter engine, select models)
• Ranger trucks, 1999-2002 (3.0 liter engine)
• Taurus sedans, 1995-1999 (3.0 liter engine)
• Taurus sedans and wagons, 2000-2002 (3.0 liter engine, select models)

General Motors

• Avalanches, 2003 (5.3 liter engine, all models)
• Chevy S-10 trucks, 2000-2002 (2.2 liter engine, all models)
• Sierra and Silverado trucks, 2002 (5.3 liter engine, select models)
• Sonoma trucks, 2000-2002 (2.2 liter engine, all models)
• Suburbans, Tahoes, Yukons, Yukon XLs, 2002 (5.3 liter engine, all models)

Isuzu

• Hombre trucks, 2000-2002 (2.2 liter engine, all models)

Mazda

• B3000 trucks, 1999-2002 (3.0 liter engine, select models)

Mercury

• Mountaineers, 2002 (4.0 liter engine, select models)
• Sables, 2001 (3.0 liter engine, select models)

Over sixty-five E85 fueling stations are now open throughout Minnesota, with an additional ten expected by the end of 2002. E85 fuel is also available at the following locations:

• The Minnesota Department of Administration (Travel Management Division in St. Paul)
• Hennepin County (Medina Public Works Facility)
• St Cloud State University
• The University of Minnesota (Minneapolis Campus)

For a complete list of E85 fueling stations and an up-to-date listing of available FFVs, visit the American Lung Association of Minnesota's Clean Air Choice program web site, or call 1-800-642-LUNG to request a printed copy. Further information is available at the National Ethanol Vehicle Coalition web site.

Hybrid Electric
As the first HEV to be sold domestically, the Honda Insight was honored as the first car to receive the Sierra Club's Excellence in Environmental Engineering Award in the organization's 108-year history. For its hybrid passenger car, the Prius, Toyota Motor Corporation received the 1998 Global Climate Protection Award from the U.S. Environmental Protection Agency - the only car manufacturer among 19 companies receiving awards.

The big three American auto manufacturers - Ford, General Motors and Chrysler - have also designed HEVs rated at 80 miles per gallon that are expected to debut in 2003.

Cost

Ethanol
FFVs are sold at dealerships nationwide at prices similar to or lower than those of gasoline-only vehicles.

The price of E85 fuel compares favorably with that of regular unleaded gasoline. In general, throughout 2002, the price of E85 fuel ranged 15-25 cents less than 87-octane gasoline.

Hybrid Electric
Currently, HEVs are sold at prices similar to or slightly higher than those of conventionally-fueled vehicles.

HEVs offer significant savings in fuel costs. According to a 1995 study by NEVCOR, based on a price of $1.50 per gallon of gasoline, hybrids fared better than conventional vehicles. Fuel expenses for hybrids are estimated to be 3.4 cents per mile, with all-electric vehicles at 3.6 cents per mile - each better than the 5 cents per mile for conventional gasoline-powered vehicles. As the price of gasoline increases, fuel savings will become even more significant.

Vendors

Flexible Fuel Vehicles (FFVs) and Ethanol

Minnesota State Contract
There are a number of E85 flexible fuel vehicles available on contract. See Cooperative Purchasing Venture for information on accessing this contract.

• A-175 (5) Automobiles, Vans, Alternative Fuel (E85) and Non-Alternative Fuel Vehicles.

Models currently available in 2002 include:

• Chevrolet Tahoe (GMC Yukon)
• Dodge Caravan
• Dodge Grand Caravan
• Dodge Stratus Sedan
• Ford Explorer
• Ford Taurus Sedan
• Ford Taurus Station Wagon

Gasoline versions of these models will not be offered to state agencies.

Other Vendors

Flexible Fuel Vehicles and Fueling Stations
E85 fuel is available both in the metro area and in Greater Minnesota communities. For a complete list of more than 65 E85 fueling stations statewide, and an up-to-date listing of available FFVs, visit the American Lung Association of Minnesota's Clean Air Choice program web site, or call 1-800-642-LUNG to request a printed copy. Or visit the National Ethanol Vehicle Coalition web site.

Hybrid Electric
There are two HEVs in mass production sold in Minnesota: the Honda Insight and the Toyota Prius. For more information on the Honda Insight visit www.honda.com. For more information the Toyota Prius, visit www.toyota.com. Look in the Yellow Pages for local dealers.

Other Types of Vehicles

Refurbishing State Patrol Vehicles
A state contract was awarded in 1998 to refurbish and reuse approximately 130 of the Minnesota State Patrol's 1995 Caprice vehicles.

Refurbishing these vehicles allows the State Patrol to save money. Instead of paying over $20,000 for a new vehicle, a department can save approximately $7,000 and, in essence, receive a new car. The Caprices are retrofitted with new 350 LT1 engines and remanufactured transmissions, with a 50,000-mile, three-year warranty. Refurbishment includes complete inspection of brakes, suspension, drive train, interior lighting, the electrical system, and all parts for possible replacement.

As one of the State Patrol evaluators of this project, Corporal Brad Smith expressed his satisfaction with results:

"I now have 25,000 miles on my car since the refurbishing was completed. I must say I am very happy with the car. When I first got the car back, it drove and handled like a new one. . . The car has 105,000 miles on it now, and I feel very comfortable with the car at high speeds and during emergency operations. . . I have no doubt in my mind that even with 150,000 plus miles the performance will still be there."

The contract is available for any state or local government Chevrolet Caprice police automobile 1991 or newer. For more information regarding the vehicle contracts, contact the Department of Administration Help Line at 651/296-2600.

Electric Vehicles

Unlike hybrid electric vehicles (HEVs) that use both an electric motor and an internal combustion engine, electric vehicles (EVs) are solely powered by an electric motor. Typically, the EV's lead-acid or nickel-metal hydride batteries allow it to travel approximately 100 miles between recharges. Although the purchase price can be $30,000 to $40,000 higher than that of a conventional vehicle, the Electric Vehicle Association of the Americas (EVAA) cites the following benefits:

• EVs produce little sound relative to an internal combustion engine.

• Well-designed EVs travel at speeds equivalent to conventional vehicles and offer all the same safety and high-performance features.

• The per-mile fuel cost of operating an EV can be less than one-third that of a gasoline-powered car. Lower routine maintenance costs are expected, as EVs have fewer moving parts than internal combustion engines and require neither tune-ups nor oil changes.

• Refueling can be done easily and safely at home overnight, at work, or at public locations such as shopping centers where electric charging units have been installed.

• Electric vehicles are today's zero-emission vehicles. For power plants using renewable energy sources like wind, solar, and hydropower, no air pollution at all is created.

• EVs help lessen the country's dependence on imported petroleum.

For more information, visit the Electric Vehicle Association of the Americas website, or call 202/508-5995.

Resources

Success Stories

Sources

American Lung Association of Minnesota
"Buyers Guide to Cleaner Cars"
California Air Resources Board

""Ethanol in Minnesota," Factsheet No. 2
Institute for Local Self Reliance
1999

Ford Motor Company

"Hybrid Electric Vehicles"
Scientific American
October 1997

"Hybrid Electric Vehicles: Options for State Policymaker"
Environment, Energy and Transportation Program
National Conference of State Legislatures
July 1996

U.S. Department of Energy

Minnesota Department of Commerce - Energy Division