WASHINGTON -- The government is extending an incentive program for automakers who build vehicles that can run on ethanol blends and other alternative fuels.
The extension, announced Wednesday by the National Highway Traffic Safety Administration, covers vehicles through the 2008 model year. The program, which was approved by Congress in 1988, originally covered vehicles from the 1993 to 2004 model years.
The program provides automakers with credits toward the calculation of their fleet's average fuel economy. Each automaker now must reach an average of 27.5 mpg for its fleet; the extension will allow companies to factor in a credit of 0.9 mpg if they make vehicles that can run on alternative fuels.
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