Ethanol Blog: Senate Bill Would Open Door Wider for Flexible-Fuel Vehicles in Emissions Reductions

August 01, 2023

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by Todd Neeley (DTN Progressive Farmer) A bill introduced in the U.S. Senate on Monday would provide new incentives for automakers to produce more flexible-fuel vehicles, which are vehicles that can burn any blend of ethanol up to E85.

The Flex Fuel Fairness Act introduced by Sens. Amy Klobuchar, D-Minn., and Pete Ricketts, R-Nebr., is designed to level the playing field between FFVs and electric vehicles when it comes to carbon emissions.

Under current EPA emissions regulations electric vehicles benefit from an assumption there are zero carbon emissions associated with operating the vehicles. The EPA announced plans to make the zero-emissions assumption permanent for EVs in its recent proposed rule for 2027-2032 emissions standards.

The proposed legislation would create a similar assumption that FFVs always operate on E85 -- a fuel that reduces lifecycle GHG emissions by 31% percent compared to gasoline. The bill would allow automakers to use an emissions value for an FFV that is 31% lower than the emissions value for the corresponding non-FFV model.

FFVs have been available throughout the life of the Renewable Fuel Standard but to this point have not been recognized by the EPA as an emissions advantage. READ MORE

RFA Applauds Senate Bill Stimulating Flex Fuel Vehicle Production (Renewable Fuels Association)

Growth Energy Welcomes Senate Bill to Boost Flex Fuel Vehicles (Growth Energy)

Nebraska Senator pushes for Flex-Fuel Fairness Act (1011 Now; includes VIDEO)

Ricketts-Klobuchar Introduce Bill to Level Playing Field for Flex Fuel Vehicles, Counter Biden EV Push (Office of Senatory Pete Ricketts (R-NE)

FLEX FUEL FAIRNESS ACT WOULD ‘LEVEL THE PLAYING FIELD’ AGAINST ELECTRIC VEHICLES (Brownfield Ag News)

Ricketts Promotes Flex Fuel Fairness in Nebraska (Energy.AgWired.com)

Klobuchar, Ricketts introduce Flex Fuel Fairness Act (Ethanol Producer Magazine)

Sen. Ricketts holds roundtable talk on ethanol and Flex Fuel Fairness Act (Fox Nebraska; includes VIDEO)

'Level the playing field': Ricketts pushes flex fuel bill to help Nebraska's ethanol industry -- Nebraska Sen. Pete Ricketts unveiled his Flex Fuel Fairness bill to incentivize car manufacturers to put more resources into building flex fuel vehicles. (KETV)

Klobuchar, Ricketts Introduce Legislation to Level the Playing Field for Flex Fuel Vehicles (Office of Senator Amy Klobuchar (D-MN))

RFA welcomes the Senate introduction of the Flex Fuel Fairness Act (RFD TV)

Excerpt from Renewable Fuels Association: The Renewable Fuels Association today welcomed the Senate introduction of the Flex Fuel Fairness Act, a bill that encourages automakers to produce more flex fuel vehicles (FFVs) capable of operating on low-carbon ethanol flex fuels like E85. The bill, introduced by Sens. Amy Klobuchar (D-MN) and Pete Ricketts (R-NE), would help to level the playing field for FFVs by properly recognizing the emissions benefits associated with using E85 flex fuels (which contain 51-83 percent ethanol).

“We thank Senators Klobuchar and Ricketts for introducing the Flex Fuel Fairness Act, which appropriately acknowledges the emissions benefits of FFVs and flex fuels and rewards automakers who continue producing these popular vehicles,” said RFA President and CEO Geoff Cooper. “This legislation helps unlock the potential of renewable fuels and puts more tools in the toolbox for automakers who must comply with increasingly stringent vehicle emissions standards. By leveling the playing field for the production of all clean vehicle technologies, this bill allows low-carbon liquid fuels like ethanol to work alongside clean electricity, electric vehicles, and other technologies to reduce emissions from transportation.”

The legislation is designed to create more equitable incentives and market signals for the production of a broader portfolio of clean vehicle technologies. Under current EPA emissions regulations, battery electric vehicles (EVs) benefit from an assumption that there are zero carbon emissions associated with operating the vehicle. EPA announced plans to make the “zero emissions” assumption permanent for EVs in its recent proposed rule for 2027-2032 emissions standards. In essence, EPA’s regulations assume a battery EV will always operate on zero-carbon electricity over its entire lifetime.

To create an equitable incentive for the continued production of FFVs, today’s legislation creates a similar assumption that FFVs always operate on E85—a fuel that reduces lifecycle GHG emissions by 31 percent compared to gasoline. Thus, for the purposes of demonstrating compliance with vehicle emissions standards, the legislation allows automakers to use an emissions value for an FFV that is 31 percent lower than the emissions value for the corresponding non-FFV model.

“If EPA regulations are going to credit EVs for their maximum theoretical carbon emissions benefit, then it stands to reason that the agency should also credit FFVs for their maximum possible carbon emissions benefit,” Cooper said. “This bill would ensure that EPA is being fair and equitable in the way it uses emissions values as policy incentives to stimulate the production of lower-carbon vehicles.”

Even as demand for low-carbon E85 has soared in recent years, the number of new FFV models has decreased significantly in recent years, Cooper said, as previous regulatory incentives for FFV production have been phased out by EPA. For the model year 2023, the only FFVs available to consumers are select Ford Explorer, F-150 and Transit models. As recently as the model year 2015, more than 80 different FFV models from eight manufacturers were available to consumers. Click here to see a chart of models available as flex fuel.

More than 5,700 gas stations currently offer E85 in the United States, and the fuel typically sells for 20-25 percent less than regular gasoline. Click here for locations and a price tracker. READ MORE

Excerpt from Growth Energy: The Flex Fuel Fairness Act would give automakers an additional pathway to reduce emissions. FFV makers would be assigned credit towards federal standards based on the emissions profile of E85 fuel, which reduces lifecycle greenhouse gasses by about 31 percent, according to the Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model developed by the U.S. Department of Energy’s Argonne National Laboratory.

“Higher blends of biofuels offer immediate climate benefits while also reducing emissions of particulate matter, carbon monoxide, and other smog-forming pollutants linked to cancer and other negative health outcomes,” added (Growth Energy CEO Emily) Skor. “This legislation would put more FFVs on the road and position them to play an even greater role in decarbonizing transportation for decades to come.” READ MORE

Excerpt from Office of Senator Pete Ricketts (R-NE): “The Biden EPA has made a mistake and ignored the proven benefits of flex fuel vehicles that can run higher ethanol blends,” said Senator Ricketts. “Our bill levels the playing field for a proven Nebraska alternative to expensive and burdensome electric vehicles. Nebraskans know biofuels like ethanol are a proven solution that lowers prices for consumers at the pump, is great for our farmers and ranchers, and reduces our dependence on foreign oil.”

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Bill text will be available  here. 

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The EPA’s proposed approach for EVs (i.e., using a value of 0 grams/mile) assumes every EV produced by automakers will only use zero-carbon renewable electricity. However, the EPA’s proposed approach ignores the significant CO2 emissions associated with critical mineral extraction, EV battery production, and the production and transmission of electricity used to recharge EV batteries.

Meanwhile, the EPA’s proposal does not recognize or account for the meaningful CO2 emissions savings that can be achieved through expanding biofuels use in vehicles designed to accommodate higher blends, including flex fuel vehicles.

For the purposes of determining CO2 tailpipe emissions compliance performance values, flex fuel vehicles (FFVs) capable of operating on E85 should be assumed to operate on E85 all of the time, just as EVs are assumed to operate on zero-carbon electricity all of the time. READ MORE