Senate bill aims to create high-octane, low-carbon fuel standard

March 22, 2023

BY Erin Voegele

Sens. Chuck Grassley, R-Iowa; Amy Klobuchar, D-Minn.; Joni Ernst, R-Iowa; and Tammy Duckworth, D-Ill., on March 22 reintroduced the Next Generation Fuel Act, a bill that aims to establish a high-octane, low-carbon fuel standard. Similar bills have been introduced in 2020, 2021 and 2022.

The legislation would establish a minimum research octane number (RON) standard of 98 for gasoline, which is higher than the typical octane of 91. It also requires the added octane value to reduce carbon emissions by at least 40 percent compared to regular gasoline. Fuels containing 20 to 30 percent ethanol would meet these requirements. In addition, the bill would require automobile manufacturers to design and warrant their vehicles to allow these fuels beginning with model year (MY) 2026; includes a restriction on the aromatics content of gasoline; and ensures parity in the regulation of gasoline volatility (Reid vapor pressure).

“Instead of continuing to buy more oil from foreign adversaries, we should be increasing the use of ethanol made by biofuel producers right here in the United States,” Grassley said. “The Next Generation Fuels Act would help put America back on the path to energy independence while easing the pain at the pump. It’s good for consumers, good for farmers and biofuel producers, and good for the environment. This is the right approach to energy policy, and I’m proud to work with my colleagues to reintroduce this bill.”

“I’ve long pushed for investments in readily-available, domestically-produced biofuels, which are good for drivers and farmers alike,” Klobuchar said. “By allowing the use of higher biofuel blends in our fuel supply, our bipartisan legislation will benefit our economy, decrease prices at the pump, and reduce our dependence on foreign oil.”

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“Iowa families need solutions to stretch every dollar, and homegrown Iowa biofuels stand at the ready to relieve the pain at the pump,” Ernst said. “This commonsense legislation drives down costs for consumers, lowers carbon emissions, supports our farmers and producers, and moves us one step closer to energy independence.”

“It’s shameful that Big Oil is continuing to use Putin’s war of choice as an excuse to drive up prices and rake in huge profits off the backs of hardworking Americans,” Duckworth said. “It is past time we offer better options at the pump to help lower costs, decrease carbon emissions and reduce reliance on foreign oil while helping Illinois farmers grow the food and fuel we need, and I’m proud to help re-introduce this bipartisan bill that would do just that.”

The Next Generation Fuels Act has been endorsed by the Renewable Fuels Association, Growth Energy, the American Coalition for Ethanol, the National Corn Growers Association, and National Farmers Union.

“We thank Sens. Grassley and Klobuchar, along with Sens. Ernst and Duckworth, for reintroducing the Next Generation Fuels Act in the Senate,” said Geoff Cooper, president and CEO of the RFA. “Americans will continue to rely on liquid fuels and internal combustion engines for decades to come, and this legislation will ensure drivers have access to more efficient high-octane, low-carbon, lower-cost fuels for their vehicles well into the future. We look forward to working with clean fuel supporters in both chambers of Congress to turn this bold vision into a reality.”

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“American-made ethanol already makes a positive impact every day, but we've still only scratched the surface of the benefits this renewable fuel can deliver to the environment and to drivers across the country,” said Emily Skor, CEO of Growth Energy.” The Next Generation Fuels Act recognizes that ethanol is the only fuel available today that can be immediately deployed to decrease our nation's carbon emissions, decrease our reliance on foreign oil, and decrease fuel costs for American families all at once. This legislation would give ethanol a greater role in decarbonizing our economy while decreasing volatility and lowering prices at the pump, and we urge all lawmakers on both sides of the aisle to join Senators Grassley and Klobuchar to see the bill quickly signed into law.” 

“We support this legislation because it would overcome a host of regulatory barriers currently standing in the way of expanding the use of ethanol, from E15 to high octane blends such as E25 or E30, and reinstate incentives for the production of more flexible fuel vehicles (FFVs),” said Brian Jennings, CEO of ACE. “We thank these lawmakers for recognizing the value of ethanol as an immediate solution to decarbonize the transportation sector and improve the efficiency of vehicles, as liquid fuels will continue to be used in the decades to come, despite the rise of electric vehicles.”

“Enactment of the clean fuel performance-based §45Z tax credit late last year in the Inflation Reduction Act enables ethanol and other clean fuel producers the opportunity to obtain a tax credit based on their unique carbon intensity score,” Jennings added. “Enactment of the Next Generation Fuels Act would complement that tax credit by helping lower pump prices while enabling greater engine efficiency and biofuel demand, and we look froward to promoting the legislation during our fly-in next week.”

 

 

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