It’s Time For Flex Fuel Fairness

September 21, 2023

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by Geoff Cooper (Renewable Fuels Association/Ethanol Producer Magazine) In 2014, nine major auto manufacturers produced and sold more than 2.8 million flex-fuel vehicles (FFVs) capable of running on fuel with up to 85 percent ethanol (E85). In fact, one out of every six vehicles sold in the U.S. market that year was an FFV. By 2022, however, FFV production had plummeted to less than 350,000 vehicles, and Ford was the only manufacturer still making FFVs available to everyday consumers.

What caused the collapse in FFV production? Well, the answer can be summed up in three letters: EPA.

Prior to 2016, automakers that made FFVs earned substantial credits that could be used to comply with federal fuel economy and tailpipe emissions standards. The credits were based on the notion that FFVs would operate on lower-carbon E85 half of the time; and extra credit was provided based on E85’s ability to significantly displace petroleum. The combination of these credits provided a powerful incentive that caused FFV production to double between 2010 and 2014.

But the Obama administration did a quick U-turn on FFVs, adopting regulations in 2010 that would phase out the petroleum displacement credit for them by 2016. And beginning that same year, automakers that wanted credit for building FFVs would be required to prove to EPA that those vehicles were actually using E85. At the time, the agency said, “EPA believes the appropriate approach is to ensure that FFV emissions are based on demonstrated emissions performance.”

Oh, the irony.

Today, 13 years later, EPA has proposed regulations that allow electric vehicle manufacturers to assume that those vehicles have zero emissions, even when it is well known that there are significant upstream emissions related to electricity generation and battery manufacturing. In other words, EPA is allowing automakers to simply assume all EVs are entirely free of any carbon impacts, while at the same time requiring FFV makers to prove that those vehicles are using E85. This zero-emissions assumption for EVs provides an overpowering incentive that will effectively force automakers to abandon internal combustion engines in favor of battery-powered vehicles.

Fortunately, a bipartisan duo of senators has recognized the bias and incongruity of EPA’s proposal—and they are doing something about it. In July, Senators Amy Klobuchar (D-MN) and Pete Ricketts (R-NE) introduced the Flex Fuel Fairness Act, a bill that would level the playing field for FFVs by properly recognizing the emissions benefits associated with using E85 flex fuels.

Just as EPA assumes an EV will always use zero-emissions electricity, the Flex Fuel Fairness Act creates a similar assumption that FFVs will always operate on E85—a fuel that reduces lifecycle GHG emissions by 31 percent per mile compared to gasoline today. The bill allows auto manufacturers who produce FFVs to use a tailpipe emissions value that is 31 percent lower than the value for the corresponding non-FFV model. This incentive would strongly encourage automakers to ramp up FFV production—alongside increased EV output—to ensure consumers have more low-carbon vehicle options.

Clearly, the timing is right. Demand for low-carbon E85 has soared in recent years, just as FFV production has been crashing. For example, the sale of E85 in California in 2022 surged 66 percent over 2021 and was more than double the volume sold in 2019. Today, more than 5,700 gas stations offer E85 in the United States, and the fuel typically sells for 20 to 25 percent less than regular gasoline, a price difference that more than makes up for any potential fuel economy loss.

RFA is encouraging all ethanol proponents to call your senators today and ask them to support the Flex Fuel Fairness Act. This innovative legislation would level the playing field for low-carbon vehicle technologies and give American consumers the options they desire—both at the auto dealer lot and at the filling station. READ MORE

Local View: Klobuchar right on with bill to boost renewable fuels: From the column: "It makes perfect sense for a senator from Minnesota to take the lead in advancing (flex-fuel vehicles) and renewable fuels. The state blazed the trail for renewable fuels. (Duluth News Tribune)

Flex Fuel Fairness Act Introduced in House (Energy.AgWired.com)

RFA Salutes House Introduction of Bipartisan Flex Fuel Fairness Act (Reneawble Fuels Association)

Miller-Meeks, Craig Introduce Flex Fuel Fairness Act Of 2023 (Ethanol Producer Magazine)

Excerpt from Duluth News Tribune: What if there was a commercially available product that could immediately slash vehicular greenhouse-gas emissions by nearly one-third? The U.S. Environmental Protection Agency would promote its use, right?

Well, there is precisely such a product. It’s a flex-fuel vehicle, or FFV, running on E85, a lower-cost, lower-carbon fuel with a high content of renewable, plant-based ethanol. E85, which contains up to 85% ethanol, is currently sold at more than 5,700 fueling stations across the country at prices up to 25% less than “regular” gasoline. This makes FFVs running on E85 a great option for both climate-conscious and budget-conscious consumers. And with 27 million FFVs already on the road — representing roughly one out of every 10 passenger vehicles — E85 represents an immediate solution for significant greenhouse-gas reductions.

Oddly, though, the EPA just hasn’t gotten behind FFVs, which means our nation isn’t benefiting from the full environmental or economic advantages of renewable fuels.

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The Gopher State also boasts the highest number of fueling stations selling E85 and the highest number of stations offering E15 (a blend containing 15% ethanol approved for use in non-FFVs).

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The main thrust of the act is just common sense: Give credit where credit is due. When regulating electric vehicles, the EPA assumes they are zero-emissions and extends incentives accordingly. It’s only fair that FFVs, which can slash greenhouse-gas emissions 31% when using E85, should be incentivized by the EPA to a commensurate degree.

Doing so would help reverse an upsetting trend of decreasing the availability of flex-fuel vehicles. For perspective, as recently as model year 2015, more than 80 FFV models were offered by eight manufacturers. For model year 2023, in contrast, the only FFVs available to consumers were select Ford Explorers, F150s, and Transits.

Ironically, this downward trajectory in FFV choice runs counter to increasing consumer demand for lower-carbon E85 fuel for FFVs. That’s how much harm an unfair government policy can cause.

The Flex Fuel Fairness Act would correct this government-imposed market distortion by equalizing incentives for electric vehicles and FFVs.

As a matter of principle, the government shouldn’t pick winners and losers, and regulators should not play favorites when unbalanced rules undermine sustainability and jobs. The Flex Fuel Fairness Act would level the playing field when it comes to stimulating the production of lower-carbon vehicle options.

This bill represents a rare opportunity to support a measure that’s as good for the environment as it is for the economy and the family budget. Hopefully, Sen. Klobuchar’s colleagues in Congress recognize the wisdom of this solution and cosponsor her legislation. READ MORE

Excerpt from Energy.AgWired.com: U.S. Representatives Mariannette Miller-Meeks (R-IA) and Angie Craig (D-MN) this week introduced the Flex Fuel Fairness Act of 2023, designed to level the playing field for vehicles running on low-carbon liquid fuels, like ethanol.

“As we look toward a cleaner energy future with options to lower carbon emissions, it’s imperative to amplify solutions like flex fuel vehicles (FFVs) and ensure that they are included as a low-carbon option,” said Miller-Meeks. “FFVs provide more options for consumers and the U.S. supply chain and unlock increased use of lower-carbon liquid fuel blends containing higher levels of ethanol, like E30 and E85. I am proud to lead the ‘Flex Fuel Fairness Act of 2023,’ and level the playing field for FFVs as a practical alternative to Electric Vehicles.”

“Renewable fuels are a solution we can implement to combat climate change right now, and we know that flex fuel vehicles help Minnesotans save money at the pump, support family farmers and producers and help protect the environment,” said Craig. “That’s why I introduced this bipartisan bill with my colleague Rep. Miller-Meeks to expand flex-fuel vehicle production – and I’ll keep working to get our bill passed.”

Renewable Fuels Association President and CEO Geoff Cooper says the legislation acknowledges the important emissions benefits of flex fuel vehicles and promotes the continued production of these popular automobiles. “This legislation would provide more clean vehicle options for consumers and give automakers more ways to comply with increasingly stringent vehicle emissions standards,” said Cooper. “By leveling the playing field for 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 bill 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). A Senate version was filed this past summer by Sens. Amy Klobuchar (D-MN) and Pete Ricketts (R-NE).

Cosponsors of the House bill include Ashley Hinson (R-IA), Randy Feenstra (R-IA), Derrick Van Orden (R-WI), and Brad Finstad (R-MN). READ MORE