September 30, 2022
Fargo, US 62 F

Next Generation Fuels Act Introduced in Senate

On Tuesday, a bipartisan group of Senators introduced the Next Generation Fuels Act in the Senate. Led by Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Joni Ernst (R-Iowa), and Tammy Duckworth (D-Ill.), the bill would give more access to higher biofuel blends for American drivers. You can read more reaction from various groups below:

National Corn Growers Association Applauds Senate Introduction of Next Generation Fuels Act

In a step forward for energy security and the nation’s consumers, Senator Charles Grassley (R-Iowa), with the support of Sens. Amy Klobuchar (D-Minn), Joni Ernst (R-Iowa) and Tammy Duckworth (D-Ill.), today introduced the Next Generation Fuels Act in the U.S. Senate.

“The Next Generation Fuels Act would lower fuel prices, reduce carbon emissions, and shore-up America’s energy security for the long run,” said Iowa farmer and National Corn Growers Association (NCGA) President Chris Edgington. “We are very grateful to Sens. Grassley, Klobuchar, Ernst and Duckworth for their leadership on this important issue.”

The bill would establish a clean, high-octane standard for gasoline and require that sources of additional octane result in at least 40% fewer greenhouse gas emissions, allowing automakers to significantly improve vehicle fuel efficiency through advanced engines.

Because corn growers have a vested interest in the future of transportation, NCGA began laying the groundwork and advocating for this policy several years ago, and the Next Generation Fuels Act, H.R. 5089, has received bipartisan support in the U.S. House of Representatives.

“We have worked closely with members of the House and Senate to secure bipartisan support for this legislation,” Edgington said. “In recent months, consumers have been reminded that we need choices at the pump. The Next Generation Fuels Act would diversify our fuel supply and take greater advantage of low-cost, low-emission, and high-efficiency ethanol to give drivers affordable choices as we decarbonize and clean up transportation.”

As gas prices climbed to all-time highs, NCGA has reminded policymakers that ethanol has been priced about $1 per gallon less than unblended gasoline at wholesale, and drivers are saving 30 to 40 cents or more per gallon where retailers offer E15.

In late spring, the Biden administration acted to preserve access to higher blends of ethanol through the summer, ensuring consumers continue to have the low-cost, low-emission choice of E15 at the pump. The Next Generation Fuels Act would build on this progress by advancing higher ethanol blends and advanced vehicles that deliver greater emission reductions, cost savings and consumer choice.

RFA Thanks Senators for Advancing Innovative
Next Generation Fuels Act
The Renewable Fuels Association today thanked Sen. Chuck Grassley (R-IA) and a bipartisan group of co-sponsors for introducing the Next Generation Fuels Act in the Senate. The bill establishes a high-octane, low-carbon fuel standard that would lower pump prices, reduce greenhouse gas emissions, enable greater engine efficiency, and encourage competition. In addition, the legislation addresses regulatory impediments that have slowed the commercialization of these fuels and the vehicles that consume them.
Along with Sen. Grassley, original cosponsors include Sens. Amy Klobuchar (D-MN), Joni Ernst (R-IA) and Tammy Duckworth (D-IL). A similar bill was introduced last year in the House of Representatives by Rep. Cheri Bustos (D-IA) and currently has 25 bipartisan cosponsors.
“We sincerely thank Sen. Grassley, along with Sens. Klobuchar, Ernst, and Duckworth, for introducing the Next Generation Fuels Act in the Senate,” said RFA President and CEO Geoff Cooper. “These lawmakers recognize that Americans will continue to rely on liquid fuels and internal combustion engines for decades to come, and their legislation would ensure consumers have access to more efficient, lower-carbon, lower-cost fuels for their vehicles. This summer’s geopolitical instability, record-high gas prices, and more frequent climate disasters all underscore the need for real and immediate energy solutions for American families. This bill provides those sensible solutions, and we look forward to working with clean fuel supporters in both chambers of Congress to turn this bold vision into a reality.”
In addition to saving drivers money at each fill-up, low-carbon liquid fuels like ethanol are an essential part of the strategy to reach net-zero GHG emissions by mid-century, Cooper said, and RFA’s member companies have committed to achieving a net-zero carbon footprint for ethanol by 2050 or sooner.
Specifically, the Next Generation Fuels Act would establish high-octane (95 and 98 RON) certification test fuels containing 20-30 percent ethanol, while requiring automobile manufacturers to design and warrant their vehicles for the use of these fuels beginning with model year 2026. The bill also includes a low-carbon requirement, specifying that the source of the octane boost must reduce lifecycle greenhouse gas emissions by an average of at least 40 percent compared to a 2021 gasoline baseline, as measured by the Department of Energy’s GREET model. The legislation also includes a restriction on the aromatics content of gasoline, ensures parity in the regulation of gasoline volatility (Reid vapor pressure), corrects key variables used in fuel economy testing and compliance, requires an update to the EPA’s MOVES model, ensures infrastructure compatibility, and addresses many other regulations impeding the deployment of higher octane blends at the retail level.

Growth Energy Applauds Introduction of Grassley, Klobuchar Bill on High-Octane, Low-Carbon Fuels, Urges Senate Passage 

WASHINGTON, D.C. – Growth Energy today praised the introduction of legislation by U.S. Senators Chuck Grassley (R-Iowa), Amy Klobuchar (D-Minn.), Joni Ernst (R-Iowa), and Tammy Duckworth (D-Ill.) that would unleash access to higher-octane, lower-emission, and lower-cost fuels for American drivers.

“The Next Generation Fuels Act represents a clear roadmap for delivering cleaner, more affordable options at the pump for American drivers,” said Growth Energy CEO Emily Skor. “With a natural octane of 113, ethanol is the only high-performance, renewable fuel ready to help decarbonize cars on the road today – and with the added benefit of offering consumers significant savings at the pump. We applaud Senators Grassley, Klobuchar, Ernst, and Duckworth for working to promote the use of high-octane, lower-carbon biofuel blends that hold enormous potential for rural America’s role in clean energy production and lowering prices at the pump. We urge swift passage of this legislation as it works to offer both climate solutions and gas price relief to the American people.”

Background

The House version of the Next Generation Fuel Act was introduced in August 2021 by Representatives Cheri Bustos (D-Ill.) and Congressman James Comer (R-Ky.). The legislation requires the Environmental Protection Agency (EPA) to create a new 95 Research Octane Number (RON) standard that would rise to 98 RON after 2031. The legislation would also limit reliance on toxic, aromatic hydrocarbons, require a 40 percent reduction in the carbon intensity of octane-boosting additives, and update fuel and infrastructure regulations to expand the availability of ethanol blends up to E40. In addition, the bill extends incentives for Flex Fuel vehicles and requires the Environmental Protection Agency (EPA) to make long-overdue updates to obsolete models that undercount the contributions of U.S. biofuels to clean air and a healthy climate.

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