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Ethanol left out of Biden’s proposed emission updates

Focus on transitioning to electric vehicles misses immediate emission reductions offered by biofuels.

Jacqui Fatka, Policy editor

December 21, 2021

4 Min Read
Zero CO2 emissions iStock1154356567.jpg
RACE TO LOWER EMISSIONS: Ethanol industry calls EPA's light vehicle emissions standards missed opportunity to encourage reduced GHG emissions from use of ethanol.iStock

The Biden administration’s Environmental Protection Agency finalized what they touted is the most “ambitious” federal greenhouse gas emissions standards for passenger cars and light trucks ever. However, they failed to recognize the role biofuels can play in paving a way for a zero-emissions future.

Renewable Fuels Association President and CEO Geoff Cooper says, “It appears EPA has again failed to recognize that the fuels we put into our engines can have as much—or more—impact on fuel economy and GHG emissions as the engine technologies themselves.”

While the decision to strengthen the stringency rule proposed by the agency back in August was not unexpected, Solutions from the Land was disappointed that the final rule did not include provisions to improve fuel quality by reducing the aromatic content of gasoline.

Aromatics are base components derived from fossil fuels that blenders use to increase gasoline’s octane rating, a measure of the fuel’s effectiveness. However, aromatics also have been tied to threats to public health, damaging respiratory and cardiovascular systems.

EPA’s analysis shows manufacturers can comply with the final standards with modest increases in the numbers of electric vehicles entering the fleet. By MY 2026, EPA projects that the final standards can be met with sales of about 17% electric vehicles, and wider uptake of advanced gasoline engine and vehicle technologies available today.

Cooper says EPA had the opportunity to use this rulemaking as a tool for moving toward the adoption of high-octane, low-carbon, also known as HOLC liquid fuels, but chose not to open the toolbox. Research has proven that HOLC fuels can significantly improve fuel economy and reduce emissions from the light-duty vehicle fleet, while also reducing the harmful tailpipe pollution linked to heart disease, cancer and other illnesses, Cooper says.

While the proposal includes incentives for the production of vehicles with zero or near-zero emissions technology, it does not include a fuel quality provision that could significantly reduce GHG emissions from gasoline-powered vehicles.

“It is a missed opportunity of enormous scale,” according to a statement from Solutions from the Land. Research by Steffen Mueller, principal economist at the University of Illinois at Chicago’s Energy Resources Center, shows that greenhouse gas cuts that could be achieved by using higher-octane midlevel blends with ethanol equal those that EPA thinks are available from electrification.

“EPA is thus ignoring a very cost-effective way of achieving its desired improvements to the detriment of environmental quality, consumers, farmers and industry,” SfL says.

Future EPA actions

A separate rulemaking is expected to establish multi-pollutant emission standards under the Clean Air Act for 2027 models and beyond that the EPA says will speed the transition of the light-duty vehicle fleet toward a zero-emissions future.

“While this regulation is a missed opportunity, we will not give up on promoting an orderly transition to a higher octane fuels (98-100 RON) for all new internal combustion vehicles, establishing parity and consistency in the regulation of fuel volatility for ethanol and gasoline blends, and leveling the playing field for GHG emissions credit generation for all alternative fuel vehicles, including flexible fuel vehicles,” Cooper says. 

A letter in June from the Alliance for Automotive Innovation, which represents 38 companies producing 99% of the light duty vehicles sold in the Unites States, expressed support of high-octane, low-carbon fuels to increase the efficiency of current and future vehicles – an endorsement that further validates the role of ethanol in increasing the efficiency of current and future vehicles.

In comments submitted to the EPA on the rule in September, the AAI says ethanol blends higher than E10 could provide better value to consumers to achieve higher octane numbers and reduce carbon emissions. The group also cited research that found a transition to higher-octane gasoline was technically feasible and could be made without considerable increases in cost or carbon emissions for refineries and the retail sector. Higher octane, ethanol-blend gasoline should be encouraged as soon as possible to maximize environmental benefits across the new car fleet, the automakers say.

Push for more EVs

EPA says as the GHG standards get stronger over four years, sales of EVs and plug-in hybrid vehicles will grow from about 7% market share in MY 2023 to about 17% in MY 2026, the agency projects. These increasing levels of EVs will position the United States to achieve aggressive GHG emissions reductions from transportation over the long term, EPA says.

Under the Bipartisan Infrastructure Law, $7.5 billion is allocated for EV charging and related programs with a target of having 500,000 public charging stations by 2030, with a focus on creating a convenient national network and providing equitable access to rural drivers and overburdened and underserved communities. More than $7 billion is set aside for investments in battery manufacturing, materials and recycling to drive down costs, increase sustainability, and build the batteries that will power the future vehicles here in the United States. The surge in charging infrastructure investments coupled with battery technology advancements, increased range, and reduced battery and vehicle costs are making EVs more attractive than ever to consumers, EPA claims.

Jacqui Fatka, long-time policy editor at Farm Futures, will bring her valuable agricultural policy insight to the stage of the Business Summit in Iowa City, IA Jan. 20-21, 2021. Featuring industry experts and in-depth training sessions, it’s an opportunity to gain clear insights for a profitable future. Use code BOGO22 to receive discounted rate for a guest. Learn more and register now! 

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About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

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