Federal and State Methanol Fuel Projects, Coordination, and State Tax Incentives

RCED-85-97: Published: May 3, 1985. Publicly Released: May 10, 1985.

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Pursuant to a congressional request, GAO examined the potential use of methanol as an alternative fuel for motor vehicles.

GAO found that methanol has attracted interest as an alternative fuel because it is a relatively clean, high-octane fossil fuel. Research is now underway in several areas, including more efficient production from new and existing sources, and necessary vehicle modifications to produce acceptable and economic performance. GAO identified 10 federal agencies and 7 states that have projects for methanol research, development, or regulation. Four states currently offer tax incentives from state fuel excise taxes to encourage the use of methanol fuel. GAO also identified coordination methods used among the federal agencies, states, and government contractors involved in methanol fuel development and provided examples of the types and extent of research activities.

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