Speaking at the Automotive News World Congress on January 23, the vice chairman of global product development for General Motors, Bob Lutz, described E-85 ethanol and biofuels as America's best bet for a quick reduction of the nation's petroleum dependence.

Lutz said his company is actively seeking alternative fuel solutions including accelerated development of the battery-powered Chevrolet Volt, but cautioned that consumers are slow to change. "We refuse to let the price of fuel rise gradually in the United States and therefore we fail to induce change in consumer behavior," he said.

The GM exec also suggested that the newly passed federal fuel economy standards won't induce Americans to buy more efficient vehicles. Only gas prices on par with those that Europeans pay, approximately $8 a gallon, will motivate such change.

"If for the last 15 years we'd had a slow, but sure rise in federal fuel taxation of, say, 15 cents a gallon per year," said Lutz, "that would have gradually put the consumer in the equation."

Predicting pricier vehicles in coming years to meet the federal mandates, Lutz said E-85 ethanol and biofuels are a better option to keep prices in a range Americans will pay for vehicles in form factors they want.

Currently there are 6 million vehicles on American roads with flex-fuel capability. If ethanol were more readily available, the potential exists to displace 29 billion gallons of gasoline each year, or roughly 18 percent of the country's projected 2020 use.