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Ethanol is a biofuel commonly used in gasoline blends to displace petroleum consumption; its utilization is on the rise in the United States, spurred by the biofuel utilization mandates put in place by the Energy Independence and Security Act of 2007 (EISA). The United States Environmental Protection Agency (EPA) has the statutory responsibility to implement the EISA mandates through the promulgation of the Renewable Fuel Standard. EPA has historically mandated an emissions certification fuel specification that calls for ethanol-free fuel, except for the certification of flex-fuel vehicles. However, since the U.S. gasoline marketplace is now virtually saturated with E10, some organizations have suggested that inclusion of ethanol in emissions certification fuels would be appropriate.

The question of whether increasing the fuel economy of light-duty natural gas fueled vehicles can improve their economic competitiveness in the U.S. market, and help the US Department of Energy meet stated goals for such vehicles is explored. Key trade-offs concerning costs, exhaust emissions and other issues are presented for a number of possible advanced engine designs. Projections of fuel economy improvements for a wide range of lean-burn engine technologies have been developed. It appears that compression ignition technologies can give the best potential fuel economy, but are less competitive for light-duty vehicles due to high engine cost. Lean-burn spark ignition technologies are more applicable to light-duty vehicles due to lower overall cost. Meeting Ultra-Low Emission Vehicle standards with efficient lean-burn natural gas engines is a key challenge.