GAO discussed the use of gasohol by federal agencies, focusing on: (1) gasohol's role in federal alternative fuels policy; (2) actual and potential federal consumption; and (3) the fuels industry's ability to supply gasohol to meet federal needs and other hindrances to gasohol use by federal agencies. GAO noted that: (1) during the early 1980's, federal laws required federal agencies to increase the use of gasohol to reduce U.S. dependence on foreign oil; (2) between fiscal years 1988 and 1990, the Department of Defense (DOD) annually procured about 1.6 million gallons of gasohol about 1 percent of bulk gasoline purchases, while national retail sales of gasohol averaged about 7 percent of total bulk gasoline purchases; (3) government credit card programs do not allow tracking of gasohol consumption and DOD incentives are needed to promote gasohol credit card use; (4) in 1990 and 1991, government agencies claimed 2,200 exemptions to use gasoline in lieu of gasohol, and none were disallowed; and (5) limited availability, low retail sales, pressures on supply and price, new environmental regulations, extra handling expenses, and poorly informed suppliers present problems for greater gasohol use.