E85 in The United States - Federal Use

Federal Use

US Federal fleet flexible-fuel vehicles (FFVs) are required to operate on alternative fuels 100% of the time upon the signing of the Energy Policy Act of 2005 into law by President Bush on August 8, 2005. (See Section 701 for this requirement.) Formerly, such FFVs were required to be operated by the end of 2005 on alternative fuels only 51% of the time (i.e., the majority of the time) by Executive Order 13149. (See Executive Order 13149, dated April 21, 2000.) This means that the US Government's use of E85 is effectively doubled as of August 8, 2005 with the signing into law of the Energy Policy Act of 2005. This jump in consumption had the effect of limiting public availability of E85 coincident with shortages of gasoline due to impacts of hurricanes in the Gulf of Mexico during the 2005 hurricane season. Although the price of corn had not changed greatly, the usage of E85 nonetheless jumped, thereby creating a shortage of E85, and causing E85 prices to rise coincident with gasoline prices during the 2005 Hurricane Season.

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