Ethanol Producers to Electric Car Makers: We're Greener than You Are

Agriculture (USDA)Federal Agency/Executive Branch Opinions Other Conferences/Events Policy Presentations Sustainability

January 14, 2022

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by Chuck Abbott (Successful Farming) With automakers shifting toward the production of electric cars and trucks, the ethanol industry said on Wednesday that biofuels will be an important tool against global warming, and arguably create less pollution than battery-powered vehicles. The comparison was based on life-cycle costs for the power sources, starting at power stations for electricity and cornfields for ethanol.

“The upstream emissions associated with electricity generation and battery manufacturing are often overlooked, giving the false impression that electric vehicles are zero-emission vehicles,” said Geoff Cooper of the Renewable Fuels Association, a trade group. “These overlooked emissions can be quite significant.”

An RFA analysis showed that a pickup truck using fuel that is 85% ethanol and 15% gasoline would generate far fewer greenhouse gas emissions over its lifetime than the same-size pickup truck “running on fossil-generated electricity,” said Cooper at a House Agriculture Committee hearing on the implications of electric vehicles on rural America.

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At the hearing, Rep. Abigail Spanberger announced a bipartisan bill to modify the USDA’s cost-sharing Rural Energy for America Program to include the installation of charging stations for electric vehicles, including pickup trucks, combines, and farm tractors. “We need to prevent rural America from getting left behind in the conversation,” the Virginia Democrat said in a statement. “Electric vehicles of the future are not just for cities — they also stand to deliver major benefits to farms, agribusinesses, and rural communities in Virginia and across the country.”

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Electric vehicles figure prominently in the plan as a way to reduce tailpipe emissions. “The future of ground transportation is electrification,” said David Strickland of General Motors, which unveiled an electric pickup truck last week.

“We believe any future decarbonization policy should take a technology-neutral, performance-based approach that focuses strictly on greenhouse emission reduction and increasing fuel efficiency without dictating the use of specific fuels and vehicles to achieve those reductions,” said the RFA’s Cooper. At the current adoption rate of electric vehicles, he said, ethanol will be a clean-burning option for motor vehicles for years to come.

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Also at the hearing, a representative of the National Association of Convenience Stores said charging stations will not become common unless the stores can sell electricity at competitive rates. At present, they must pay “very high demand charges” to utilities for the electricity, the group said.

To watch a video of the hearing, click here.

To read the written testimony of witnesses, click here. READ MORE

Beyond Cities: Breaking Through Barriers to Rural Electric Vehicle Adoption (Environmental and Energy Study Institute)

Electric vehicles pose hurdles in rural America (Farm Progress)

House Agriculture Committee holds a hearing on Electric Vehicles (RFD TV; includes VIDEO)

Sheetz VP Testifies on EVs at House Ag Committee Hearing -- Walter, on behalf of NACS, shared how fuel retailers can help bring EV charging to rural America (NACS)

HOUSE AG TALKS EV IN RURAL AREAS: (Politico's Morning Energy)

The Real Brake on America’s Electric-Vehicle Revolution: Capital is pouring into U.S. EV and battery plants, but not into the foundations of a domestic battery industry, leaving the supply chain uncomfortably dependent on China (Wall Street Journal; includes VIDEO)

California Has No Idea What Its Going To Do With Millions Of Old EV Batteries (Jalopnik)

Lithium-ion Car Battery Recycling Advisory Group (University of California Davis)

The US And UK Are Going Different Routes Regarding Electric Vehicle Recycling (Jalopnik)

Inside Clean Energy: Here Come the Battery Recyclers -- As battery use skyrockets for EVs and energy storage, a recycling industry is taking shape. (Inside Climate News)

That Electric F-150 or Hummer Isn’t as Green as You Think (Bloomberg)

Electric vehicle charging malfunction sparked Ashburn fire that caused over $15K in damages (WTOP)

Excerpt from Farm Progress: Mark Mills, senior fellow at the Manhattan Institute, says electric vehicles will reduce oil only slightly, and have an even smaller impact on carbon dioxide emissions. Mills also states that the increased demand for EV batteries will lead to increases in the price for batteries, rather than decrease prices over time. Raw materials and minerals consist of 60-70% of the cost to fabricate a battery, and new mines take a minimum of 16 years to bring online.

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Trevor Walter, vice president of petroleum supply management for Sheetz on behalf of the National Association of Convenience Stores, also warned if a ban is made on internal combustion engines, the ban sets renewable fuels on a path to elimination. “Those farmers have made long-term policy decisions to gear for production.” To pull the rug out from under them now would be detrimental, he said.

This is why it is important for lawmakers to focus on reducing carbon emissions with technology-neutral goals that account for the lifecycle of carbon emissions – including electrician generation – as the foundation for sound policies, he added.

Walter noted fuel retailers are well-positioned to play an important role in decarbonizing vehicles by offering chargers at their sites. “When drivers are able to readily get electricity the same way as they fuel now, the availability of chargers is no longer an impediment.” He added that 86% of rural America is 10 minutes from a convenience store. READ MORE

Excerpt from RFD TV: Several lawmakers expressed concerns about the additional power draw on rural electric grids. Lincoln Wood, the Electrification Policy Manager for the Georgia Southern Company says they are planning to invest $1.3 billion to improve resiliency and cyber security.

“Utilities are constantly looking at the electric grid to upgrade or make more resilient for all these reasons, but a couple specific activities that we're working on. Might be automated line devices. And so we can isolate the source of that and make a smaller impact to the grid itself. It could be maintenance at a substation or rebuilding the entire substation if needed to increase reliability. It could be even for our transmission system, rebuilding even the structures if those who needed.” READ MORE

Excerpt from NACS: Walter also shared several barriers to developing a competitive market that exist today that make it difficult for fuel retailers to offer EV charging to their customers.

“For our industry to play this important role, and for charging to be good for consumers, the sale of electricity must be reformed such that a functioning competitive retail market for selling electricity to vehicle drivers emerges,” Walter said. “We have several impediments to that today. First, utilities hit commercial users of electricity, such as convenience and fuel retailers, with punitive demand charges. Given the large electricity demands associated with fast chargers, these demand charges overwhelm the cost of electricity and make it impossible for retailers to sell electricity and make a profit.

“Second, many utilities have had the rates they charge adjusted so that residential and business customers pay higher rates in order to underwrite the construction and operation of EV chargers. This too creates an unlevel playing field and prevents a competitive market from emerging because other businesses that deploy chargers must try to recover construction and operating costs from vehicle drivers themselves,” he said.

“Third, a handful of states still prohibit businesses from selling electricity to vehicle drivers—they only allow regulated utilities to do that. This makes businesses with chargers engage in awkward practices such as renting the chargers based on time spent at the charger rather than selling electricity. This makes for confusing experiences and stunts the growth of the market,” Walter said.

Several members of Congress in their statements and questions recognized the important role the convenience industry plays in their communities and echoed many points in Walter’s testimony. Rep. David Scott (D-GA), chairman of the House Agriculture Committee, in his opening statement stated, “As anyone who lives in a rural community knows, gas stations and convenience stores are often a pillar of these communities and are sometimes the only place for us to get food. With the ongoing investment and transition to electric vehicles, we must know what the long-term impact to these businesses will be.”

Rep. Glenn “GT” Thompson (R-PA), ranking member of the House Agriculture Committee, referenced Walter’s testimony when he said that any alternatives, including electricity, should be offered in an open, competitive market and that Congress should not pick winners or losers for transportation energy. When Rep. Thompson asked Walter why it was important that any new motor vehicle fuel and energy technology is subject to an open and competitive market, Walter responded that an open market provides the lowest cost and more choice to consumers.

Several other members of the House Agriculture Committee shared the same concerns highlighted by Walter, including Rep. Randy Feenstra’s (R-IA) comments on creating an even playing field for EV charging, Rep. Sanford Bishop’s (D-GA) question on range anxiety, Rep. Julia Letlow’s (R-LA) concerns on who pays for EV charging and how can businesses make a profit, and finally Rep. Ann Kuster’s (D-NH) concerns and questions regarding creating a rate for electricity for EV charging to eliminate demand charges and excess fees on electricity. READ MORE

Excerpt from Politico's Morning Energy: HOUSE AG TALKS EV IN RURAL AREAS: Members of the House Agriculture Committee discussed the feasibility of electric vehicle expansion specifically in rural areas during a hearing Wednesday. Lawmakers in both parties raised questions over availability, cost and practical use in remote areas with limited electric resources. Rep. Doug LaMalfa (R-Calif.) expressed concerns over time periods when power is reduced in states like California to avoid wildfires and extreme heat.

“Electric vehicles won’t all charge at the same time,” responded Lincoln Wood, electrification policy manager at Southern Company, adding that there are similar issues with limited gas as folks look to evacuate areas in the South due to incoming hurricanes.

New legislation: Rep. Abigail Spanberger (D-Va.) introduced a bill Wednesday afternoon following the hearing to expand USDA's Rural Energy for America Program to include electric vehicle supply equipment. Currently REAP can’t be used for electric vehicle charging infrastructure. READ MORE

Excerpt from Jalopnik: The governor wants millions of people to drive EVs. What happens to the batteries when they get old is another issue. -- ... The co-founder of a local battery diagnostic company called ReJoule thinks one of the reasons for this lack of planning is a lack of understanding of how batteries work. From the (Daily) Bulletin:

There still aren’t enough people who understand (retired) batteries well enough to responsibly handle them,” said Zora Chung, co-founder of Signal Hill’s ReJoule Inc. “Ultimately, we need more education, and to have a more efficient marketplace to re-deploy these batteries into a second-life application.

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ReJoule has a plan to repurpose old batteries for solar storage. Meanwhile, the state hasn’t mentioned anything regarding battery recycling since late 2018. Assembly Bill 2832 was signed calling for an advisory group to look into recommendations for battery recycling. A report was done up last December with public comments being taken until mid-Febuary 2022.

California’s own strict environmental legislation may be another hurdle to battery recycling, as batteries have always been deemed hazardous waste. A bigger hurdle is not knowing what happens to out-of-warranty batteries. The advisory group’s report found that there is no good way to track what happens to these batteries after they come out of old vehicles, suggesting that money be used as an incentive to track the batteries:

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Not knowing what to do with millions of potential environmentally hazardous batteries down the road could be the next ecological disaster. READ MORE