New Issue Brief on Next Generation Fuels Act

Brazil Business News/Analysis Energy (DOE)Environmental Protection Agency Federal Agency/Executive Branch Federal Legislation Federal Regulation Feedstocks Field/Orchard/Plantation Crops/Residues Marketing/Market Forces and Sales Opinions Policy Sustainability

October 02, 2023

Print This Article Share it With Friends

(Clean Fuels Development Coalition) CFDC has produced an Issue Brief clearly explaining the provisions of the Next Gen legislation and makes a compelling case for its passage.

The new brief, the latest in CFDC’s highly successful Issue Brief and White Paper series, illustrates how this bill would open the market for higher ethanol blends that reduce carbon emissions, lower gasoline prices, reduce imports of foreign oil, and stimulate multiple sectors of the economy.

Requiring no federal subsidies or taxpayer outlays, the bill has been introduced in both the House and Senate and is gaining broad bi-partisan support.

For a copy of the Brief to click here. READ MORE

Related articles

Let’s Give the Next Generation a Better Fuel -- High Octane Low Carbon Fuels with Renewable Ethanol (Clean Fuels Development Coalition)
Next Generation Fuels Act recognizes ethanol as key to clean, affordable energy future (Solutions from the Land)

Excerpt from Clean Fuels Development Coalition: “Gasoline will continue to play a vital role in transportation for years to come and there are important improvements that can be made to reduce carbon, increase vehicle fuel efficiency and lower emissions supported directly by high octane low carbon fuels.” —The Alliance for Auto Innovation, June 2021

...

(T)he answer is federal legislation proposed in Congress titled the Next Generation Fuels Act. With this legislation now before both the House and Senate receiving broad bi-partisan support, the time is now to act. The bill makes the case for feasible, yet truly transformational change in our fuels and automobiles.

According to the sponsors of the legislation, Congress finds that:

• Continued increases in automobile efficiency are needed to improve consumer welfare and reduce carbon emissions;

• The widespread availability of high octane low carbon fuel will allow continued cost effective improvements in automobile efficiency by increasing engine compression ratios;

• High octane automobiles and low carbon fuels are readily available to consumers;

• Ethanol is a cost effective and low carbon octane enhancer;

• The widespread adoption of climate smart practices and precision technologies by U.S. corn producers have further reduced the carbon intensity of corn ethanol;

• On average, ethanol has been estimated to have lifecycle greenhouse gas emissions that are 46% lower than average gasoline, with some corn ethanol achieving a 61% reduction;

• Ethanol has one of the highest blending octane values available in the marketplace.

With this impressive set of facts as the basis to take action, the legislation addresses a number of market and regulatory obstacles that if corrected would open the market to the high octane low carbon (HOLC) fuels the global auto industry has said will be needed for decades to come. With 275 million light duty vehicles on US roadways, gasoline and the internal combustion engine will remain the primary transportation fuel. And, as the challenges of full adoption of EVs becomes more apparent, automakers are taking another long look at hybrid electric technologies that will still require liquid fuels.

...

This legislation, for the first time, reflects a thoughtful analysis of what has kept the United States from freeing itself from being captive to what is essentially a mandate that we depend on petroleum for 90% of our transportation fuel. The bill boils down the solution into what we see as the key provisions. It would:

• Increase octane in gasoline

• Ensure a role for ethanol in that increase

• Require auto warrantees for higher blends

• Ensure accuracy in emissions/testing/certification of fuels

• Revise studies on fuel effects

• Ensure equipment compatibility

• Require vapor pressure parity

• Ensure GHG reductions

• Revise Efficiency Calculation of Dual Fuel Vehicles

...

Increasing Minimum Octane Requirement for Gasoline

What It Does: Octane is calculated in several ways. There is a Research Octane Number (RON) and what consumers would be familiar with called AKI (anti-knock index) which is the posted number at the pump. The bill would require an increase from current levels of 91 RON to a 95 RON by 2028. It would require further increases by 2033 to a 98 RON.

Why It Matters: Mercedes Benz has stated “octane is the single most important consideration in engine design”. Raising octane would allow automakers to increase compression of conventional engines resulting in significantly greater efficiency—up to a 7–10% increase according to Ford, General Motors, and others.

Ensuring a Role for Ethanol in Octane

What It Does: As noted in the Congressional findings for this bill, ethanol has the highest octane blending value available. The bill requires that for an automobile to be certified, ethanol is not required but the cars must be able to certify using fuels containing 20% ethanol for the 95 RON, and 25–30% ethanol for the 98 RON.

...

Why It Matters: Ethanol is not only the lowest carbon, highest octane additive refiners can use but also the lowest cost. Ensuring a role for ethanol by having it approved in the certification process will help keep costs low and keep higher priced, carbon intensive compounds from being used.

Auto Warrantees

What It Does: All manufacturers of automobiles would be required to honor warranties for the new octane levels and the inclusion of the ethanol blends at the 20–30% volumes.

Why It Matters: The American love affair with their automobiles is woven into the fabric of our country. The unfounded fear that those opposing ethanol have created suggesting ethanol will damage your car has been successful in masking the truth. Demonizing our renewable, clean, domestic, lower cost, job creating fuel has been part of keeping us from unleashing basic automotive technology to utilize higher blends of ethanol.

In the 1990s CFDC worked with member company General Motors to have GM honor warrantees for 10% blends, ushering in a new era of ethanol use and which is now extended to 15%. This would be the evolution of that process.

Ensuring Accuracy in Emissions/Certification/ Testing of Fuels

...

Establishing Vapor Pressure Parity for All Ethanol Fuels

...

Ensuring that Any Octane Additive be Low in Carbon

...

Ensuring “Clean” Octane

What It Does: Requires a reduction in Aromatic compounds—classified as Mobile Source Air Toxics, or MSATS.

Why It Matters: As far back as the 1990 Clean Air Act Amendments Congress called for Clean Octane and directed EPA to reduce MSATS with ethanol. General Motors has stated 98% of fine particulate pollution comes from these aromatic compounds. With gasoline direct injection engines (GDI) being the predominant propulsion technology, these particulates will increase dramatically in the coming years. Replacing these toxic octane enhancers with ethanol will provide significant public health benefits.

Ensuring Equipment Compatibility

...

Correcting Calculations of Dual Fuel Vehicles:

...

While not a mandate or a requirement, the elimination of barriers to using ethanol at its highest value provides refiners with the lowest cost source of octane. US refinery capacity has declined considerably, and that which remains has been operating at unsustainably high capacity. In plain terms, rather than making octane in-house by processing these toxic, carbon intensive aromatic compounds, refiners can essentially outsource their octane needs using lower cost ethanol. They can actually make more gasoline by processing oil into a low octane blendstock that can then be turned into the HOLC Fuel blend. It should also increase their output of distillate/diesel, jet fuels, and other petroleum products to increase exports that will benefit their bottom line.

As the pendulum swings back to internal combustion engines the quest for low carbon isn’t going to disappear. Higher ethanol blends makes their product lower in carbon—essential if they are to avoid becoming obsolete. It then supports the argument to regulators that rather than force feeding electric vehicles on to the public in the name of climate change and carbon reduction, we can achieve the same benefits with High Octane Low Carbon Fuels in the existing fleet and the conventional cars that will be produced for the foreseeable future. Peer reviewed studies also show that refinery emissions would be reduced, further improving their carbon footprint.

If the environmental community would be intellectually honest they should look at contemporary data and recognize the carbon reductions they seek not only can be achieved with new liquid fuels but also see that with less EVs than modeled in projected benefits, where are the gains in mileage and reductions in carbon going to come from? With the Department of Energy confirming ghg reductions nearing 50% as compared to gasoline and that number going up all the time, the answer is clear. READ MORE

Excerpt from Solutions from the Land: So why is the U.S. not using more of this U.S.-produced renewable fuel?

The answer is complex and multifaceted, says Doug Durante, executive director of the Clean Fuels Development Coalition. Much of the issue, he adds, lies in a series of interconnected obstacles that in the past have only been addressed piece by piece—never holistically, until now.

The bipartisan Next Generation Fuels Act, which was introduced in March to the U.S. House of Representatives by Reps. Mariannette Miller-Meeks (R-IA), Angie Craig (D-MN), Darin LaHood (R-IL), Nikki Budzinski (D-IL), and others, aims to phase in higher gasoline octane levels through the greater use of ethanol. Senators Chuck Grassley (R-IA) and Joni Ernst (R-IA) introduced companion legislation in the U.S. Senate.

“What I like about this legislation is that it identifies and systematically knocks down the obstacles,” Durante says.

And, it does not create new mandates or tax incentives. Instead, it focuses on removing barriers and opening up the market, making it easier for fuel manufacturers to add ethanol—if they choose—to make their product more affordable.

“Ethanol has proven over time to be an excellent fuel choice for U.S. consumers, and ethanol has been a positive contributor to the economic vitality of rural America,” says Bart Ruth, a Nebraska corn and soybean farmer who serves on the board of directors for Solutions from the Land. “This legislation will help reduce the impediments that prevent ethanol from reaching its full potential in meeting our energy needs and simultaneously helping with environmental goals.” READ MORE

Tags

warranty Transportation Fuels Policy Reid vapor pressure (RVP) Regulations-Federal Plug-in Hybrid Electric Vehicle (PHEV) Plug-in Flex Fuel Hybrid octane markets/sales market forces life cycle analysis (LCA) Legislation-Federal internal combustion engine (ICE) High Octane Vehicles (HOV) high octane low carbon (HOLC) fuel High Octane Gasoline (HOG) High Octane Fuel (HOF) GREET Greenhouse Gases Regulated Emissions and Energy Use in Transportation Model GHG (Greenhouse Gas Emissions) gasoline price fuel prices fuel efficiency ethanol/bioethanol ethanol prices ethanol hybrid ethanol benefits EPA (Environmental Protection Agency) environmental policy Electric Car/Electric Vehicle (EV) efficiency E30 optimized E30 E25 E20 Department of Energy (DOE) corn ethanol compression ratios certification fuels Carbon Intensity (CI)/Carbon Footprint Brazil aromatics

Comments are closed.