Oster of NREL are gratefully acknowledged. The expertise of Ms. Jo Ann Brown in preparing this report is also greatly appreciated. The objective of this 3.5 year project is to develop a commercially competitive vehicle powered by ethanol (or ethanol blend) that can meet California's ultra-low emission vehicle (ULEV) standads and equivalent corporate average fuel economy (CAFE) energy efficiency for a light-duty passenger car application. The definition of commercially competitive is independent of fuel cost, but does include technical requirements for competitive power, performance, refueling times, vehicle range, driveability, fuel handling safety, and overall emissions performance. This report summarizes a system design study completed after six months of effort on this project. The design study resulted in recommendations for ethanol-fuel blends that shall be tested for engine lowtemperature cold-start performance and other criteria. The study also describes three changes to the engine, and two other changes to the vehicle to improve low-temperature starting, efficiency, and emissions. The three engine changes are to increase the compression ratio, to replace the standard fuel injectors with fine spray injectors, and to replace the powertrain controller. The two other vehicle changes involve the fuel tank and the aftertreatment system. The fuel tank will likely need to be replaced to reduce evaporative emissions. In addition to changes in the main catalyst, supplemental aftertreatment systems will be analyzed to reduce emissions before the main catalyst reaches operating temperature.