Summary

This testimony examines federal agencies' use of gasohol--gasoline containing 10 percent ethanol. Bulk purchases of gasohol for use in federal motor vehicles have been limited, and the extent to which gasohol has been used by federal credit card purchasers of motor fuel is unknown. Eliminating or tightening exemptions from requirements for the use of gasohol and promoting its use among credit card users may increase demand. The Defense Department (DOD) has advertised in trade publications its need for more suppliers, generating increased supplier inquiries about future federal contracts. Yet questions remain about the ability of DOD and industry to meet increased demand, particularly given the current limited availability of gasohol, pending environmental regulation that may spur ethanol demand, and the expense of gasohol when handling and other costs are factored in.