Ethanol and Electric Vehicle Advocates Merging on Fuel Plan

(Energy News Network/Associated Press) After years of fighting their own policy battles, ethanol and electric vehicle advocates are tentatively banding together against a shared enemy: fossil fuels. More than two dozen organizations have been meeting for nearly two years in Minnesota to work on a “technology-neutral” policy proposal aimed at decarbonizing transportation, which has surpassed electricity production as the state’s largest source of greenhouse gas emissions.

The group includes ethanol companies, agriculture associations, conservation groups, gas and electric utilities, and clean energy advocates, including some that have been skeptical about ethanol’s environmental qualities.

In January, the coalition released a white paper outlining a concept known as a low-carbon fuel standard or clean fuels policy for the Midwest, which would reward fuels or technologies based on their lifecycle carbon emission reductions.

Supporters say the idea, which is likely to become legislation for the 2021 session, could accelerate decarbonization in both the transportation and agriculture sectors. It also has the potential to win support from lawmakers in greater Minnesota, who have recently raised equity concerns about electric vehicles.

The paper is the result of a two-year process funded by the Bernard and Anne Spitzer Charitable Trust, the MacArthur Foundation, and the McKnight Foundation.

Collaboration between biofuels supporters and electric vehicle proponents has been rare, with both camps more often competing for limited attention and funding from policymakers. The proposal outlined in the report attempts to move past that tension with a fuel-agnostic approach to decarbonization.

Low-carbon fuel standards already exist or are under development in a handful of states, with California having the nation’s largest and most-established program in place.

Stakeholders in the Great Plains Institute process see room to improve on California’s model by taking a broader look at the agricultural carbon emissions. The Midwest version proposed could better compensate farmers who grow no-till cover crops or adopt other carbon-beneficial practices.

Similarly, electric utilities could earn credits for supplying power to electric vehicle drivers, with a higher value awarded to utilities with higher rates of renewable or low-carbon electricity.

State policymakers would set a target — the paper says up to 20% by 2030 is achievable using resources in the region — and fuel companies would have to meet that target by purchasing credits from low-carbon fuel producers. READ MORE