Title 49TransportationRelease 119-73

§32905 Manufacturing incentives for alternative fuel automobiles

Title 49 › Subtitle SUBTITLE VI— - MOTOR VEHICLE AND DRIVER PROGRAMS › Part PART C— - INFORMATION, STANDARDS, AND REQUIREMENTS › Chapter CHAPTER 329— - AUTOMOBILE FUEL ECONOMY › § 32905

Last updated Apr 6, 2026|Official source

Summary

Cars that run only on an alternative fuel and were made after model year 1992 must have their fuel economy measured using the fuel content of that alternative fuel. A gallon of any liquid alternative fuel is treated as containing 0.15 gallon of fuel. For cars that can run on two fuels (dual-fuel) made in model years 1993 through 2019, the EPA will compute overall fuel economy as 1.0 divided by the sum of two parts: 0.5 divided by the gasoline/diesel fuel economy and 0.5 divided by the alternative-fuel economy. If the alternative is B20, its side is based on B20’s fuel content and B20 is treated as containing 0.15 gallon. For gaseous-fuel cars, the EPA uses the gas fuel’s content (100 cubic feet of natural gas equals 0.823 gallon equivalent; the Secretary of Transportation sets equivalents for other gases) and a gallon equivalent of gas is treated as 0.15 gallon of fuel. For gaseous dual-fuel models the EPA uses the same 0.5/0.5 formula. For dual-fuel cars made after model year 2015 that can plug in and meet a minimum electric range, a manufacturer can ask the EPA to use a different formula: overall economy = 1.0 divided by the sum of (the percent of use on gasoline divided by the gasoline fuel economy) plus (the percent of use on electricity divided by the electric fuel economy). If the maker does not ask, the EPA uses the earlier dual-fuel method. The EPA must use these measured values when calculating a manufacturer’s average fuel economy. Dual-fuel cars made on or after September 1, 2006 must have a label on the fuel compartment saying they can run on the named alternative fuel and on gasoline or diesel.

Full Legal Text

Title 49, §32905

Transportation — Source: USLM XML via OLRC

(a)Except as provided in subsection (c) of this section or section 32904(a)(2) of this title, for any model of dedicated automobile manufactured by a manufacturer after model year 1992, the fuel economy measured for that model shall be based on the fuel content of the alternative fuel used to operate the automobile. A gallon of a liquid alternative fuel used to operate a dedicated automobile is deemed to contain .15 gallon of fuel.
(b)Except as provided in subsection (d) of this section or section 32904(a)(2) of this title, for any model of dual fueled automobile manufactured by a manufacturer in model years 1993 through 2019, the Administrator of the Environmental Protection Agency shall measure the fuel economy for that model by dividing 1.0 by the sum of—
(1).5 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and
(2).5 divided by the fuel economy—
(A)measured under subsection (a) when operating the model on alternative fuel; or
(B)measured based on the fuel content of B20 when operating the model on B20, which is deemed to contain 0.15 gallon of fuel.
(c)For any model of gaseous fuel dedicated automobile manufactured by a manufacturer after model year 1992, the Administrator shall measure the fuel economy for that model based on the fuel content of the gaseous fuel used to operate the automobile. One hundred cubic feet of natural gas is deemed to contain .823 gallon equivalent of natural gas. The Secretary of Transportation shall determine the appropriate gallon equivalent of other gaseous fuels. A gallon equivalent of gaseous fuel is deemed to have a fuel content of .15 gallon of fuel.
(d)For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model years 1993 through 2019, the Administrator shall measure the fuel economy for that model by dividing 1.0 by the sum of—
(1).5 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and
(2).5 divided by the fuel economy measured under subsection (c) of this section when operating the model on gaseous fuel.
(e)(1)At the request of the manufacturer, the Administrator may measure the fuel economy for any model of dual fueled automobile manufactured after model year 2015 that is capable of operating on electricity in addition to gasoline or diesel fuel, obtains its electricity from a source external to the vehicle, and meets the minimum driving range requirements established by the Secretary for dual fueled electric automobiles, by dividing 1.0 by the sum of—
(A)the percentage utilization of the model on gasoline or diesel fuel, as determined by a formula based on the model’s alternative fuel range, divided by the fuel economy measured under section 32904(c); and
(B)the percentage utilization of the model on electricity, as determined by a formula based on the model’s alternative fuel range, divided by the fuel economy measured under section 32904(a)(2).
(2)If the manufacturer does not request that the Administrator calculate the manufacturing incentive for its electric dual fueled automobiles in accordance with paragraph (1), the Administrator shall calculate such incentive for such automobiles manufactured by such manufacturer after model year 2015 in accordance with subsection (b).
(f)The Administrator shall calculate the manufacturer’s average fuel economy under section 32904(a)(1) of this title for each model described under subsections (a)–(d) of this section by using as the denominator the fuel economy measured for each model under subsections (a)–(d).
(g)In order for any model of dual fueled automobile to be eligible to receive the fuel economy incentives included in section 32906(a) and (b), a label shall be attached to the fuel compartment of each dual fueled automobile of that model, notifying that the vehicle can be operated on an alternative fuel and on gasoline or diesel, with the form of alternative fuel stated on the notice. This requirement applies to dual fueled automobiles manufactured on or after September 1, 2006.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 32905(a)15:2013(a), (f)(1).Oct. 20, 1972, Pub. L. 92–513, 86 Stat. 947, § 513(a)–(f); added Oct. 14, 1988, Pub. L. 100–494, § 6(a), 102 Stat. 2448; Oct. 24, 1992, Pub. L. 102–486, § 403(5)(A)–(F), 106 Stat. 2876. 32905(b)15:2013(b), (f)(1). 32905(c)15:2013(c), (f)(1). 32905(d)15:2013(d), (f)(1). 32905(e)15:2013(e). 32905(f)15:2013(f)(2)(B). 32905(g)15:2013(f)(2)(A). In subsections (a) and (c), the words “after model year 1992” are substituted for “Subsections (a) and (c) shall apply only to automobiles manufactured after model year 1992” because of the restatement. In subsections (b) and (d), before each clause (1), the words “in model years 1993–2004” are substituted for “Except as otherwise provided in this subsection, subsections (b) and (d) shall apply only to automobiles manufactured in model year 1993 through model year 2004” to eliminate unnecessary words and because of the restatement. In subsection (c), the words “For purposes of this section” and “than natural gas” are omitted as unnecessary because of the restatement. The words “a gallon equivalent of natural gas” are omitted as being included in “A gallon equivalent of any gaseous fuel”. In subsection (e), the words “subject to the provisions of this section” are omitted as unnecessary because of the restatement. The words “for each model described under subsections (a)–(d) of this section” are substituted for “for each model type of dedicated automobile or dual fueled automobile” to eliminate unnecessary words. The words “by using as the denominator” are substituted for “by including as the denominator of the term” for clarity.

Editorial Notes

Amendments

2014—Subsecs. (e) to (g). Pub. L. 113–291 added subsec. (e) and redesignated former subsecs. (e) and (f) as (f) and (g), respectively. 2007—Subsec. (b). Pub. L. 110–140, § 109(b)(1), substituted “1993 through 2019” for “1993–2010” in introductory provisions. Subsec. (b)(2). Pub. L. 110–140, § 109(c), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “.5 divided by the fuel economy measured under subsection (a) of this section when operating the model on alternative fuel.” Subsec. (d). Pub. L. 110–140, § 109(b)(2), substituted “1993 through 2019” for “1993–2010” in introductory provisions. Subsecs. (f) to (h). Pub. L. 110–140, § 109(b)(3), (4), redesignated subsec. (h) as (f) and struck out former subsecs. (f) and (g) which related to temporary extension of application of subsecs. (b) and (d) and study and report on success of the policy of subsecs. (b) and (d), respectively. 2005—Subsecs. (b), (d). Pub. L. 109–58, § 772(a)(1), substituted “1993–2010” for “1993–2004” in introductory provisions. Subsec. (f). Pub. L. 109–58, § 772(a)(2), substituted “2007” for “2001” in introductory provisions. Subsec. (f)(1). Pub. L. 109–58, § 772(a)(3), substituted “2010” for “2004”. Subsec. (h). Pub. L. 109–58, § 759, added subsec. (h). 1996—Subsec. (g). Pub. L. 104–287 substituted “Committee on Commerce” for “Committee on Energy and Commerce”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2007 AmendmentAmendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an

Effective Date

note under section 1824 of Title 2, The Congress.

Reference

Citations & Metadata

Citation

49 U.S.C. § 32905

Title 49Transportation

Last Updated

Apr 6, 2026

Release point: 119-73