3.3. Motorfleetreplacement
The motorfleetiscontinuallyreplacedduetotheagingof
vehicles, soonlythemarginalincreaseincurredbyreplacingthe
fleet withflex-fuelcars,orthecostoffleetreplacementatan
accelerated pacetokeepwithbiofuelsupply,needbeconsidered.
The currentpolicytargetsincludeprimarilytheE10andB5blends
at thefinalstageofimplementationin2011,andthesecanberunin
the majorityofpost-1990standardengineswithoutmodification
(Online Mechanical.net,2010). Alimitednumberofcarscapableof
handling thehigherblendsofethanolareanticipated:Accordingto
policy goals,318,000carsthatcanuseE20and1000carsthatcan
use E85areexpectedintheyear2011.Thedecisionofconsumersto
buy thesenewvehiclescapableofrunningthehigherethanol
blends suchasE20andE85shouldbeinfluencedprimarilybythe
subsidized fuelpricesthatcanbeattainedfromtheswitch.These
customers willnotbeotherwiseincentivizedtopurchaseflex-fuel
cars andwilllikelyonlypurchasethevehiclesaspartofthe
standard agingandreplacementprocessformotorvehicles.For
these reasons,motorfleetreplacementcostswillbesettozeroin
the calculationsof2011netcost.
3.3. Motorfleetreplacement
The motorfleetiscontinuallyreplacedduetotheagingof
vehicles, soonlythemarginalincreaseincurredbyreplacingthe
fleet withflex-fuelcars,orthecostoffleetreplacementatan
accelerated pacetokeepwithbiofuelsupply,needbeconsidered.
The currentpolicytargetsincludeprimarilytheE10andB5blends
at thefinalstageofimplementationin2011,andthesecanberunin
the majorityofpost-1990standardengineswithoutmodification
(Online Mechanical.net,2010). Alimitednumberofcarscapableof
handling thehigherblendsofethanolareanticipated:Accordingto
policy goals,318,000carsthatcanuseE20and1000carsthatcan
use E85areexpectedintheyear2011.Thedecisionofconsumersto
buy thesenewvehiclescapableofrunningthehigherethanol
blends suchasE20andE85shouldbeinfluencedprimarilybythe
subsidized fuelpricesthatcanbeattainedfromtheswitch.These
customers willnotbeotherwiseincentivizedtopurchaseflex-fuel
cars andwilllikelyonlypurchasethevehiclesaspartofthe
standard agingandreplacementprocessformotorvehicles.For
these reasons,motorfleetreplacementcostswillbesettozeroin
the calculationsof2011netcost.
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