U.S. Reps. Bill Flores (R-TX) and John Shimkus (R-IL) on Nov. 21 released a discussion draft of the 21st Century Transportation Fuels Act, which would amend federal laws to set a national octane standard and sunset the Renewable Fuel Standard (RFS).
Their 34-page draft of the bill “sets the stage to modernize federal policies and deliver a new generation of more efficient and cost-effective vehicles and engines and fuels for American consumers,” the lawmakers said in a statement last week.
“The draft legislation we are sharing today enables a transition to 21st century vehicle drivetrains by bringing together both new ideas and technologies as well as long-sought reforms to existing policies,” said the congressmen.
The draft bill would require motor vehicle manufacturers to warrantee model year 2023 vehicles and later to operate with gasoline blends of up to 20 percent ethanol, according to the draft, and any gasoline retailer for such vehicles would be required to “incorporate into retailer’s dispensing equipment such devices or elements of design [that are] necessary for compatibility with the motor vehicle design requirements.”
Additionally, the conventional biofuel pool under the RFS would sunset by 2023, according to the draft, while up to 15 billion gallons of conventional biofuel would be permitted to meet RFS standards from 2020-2022.
The Environmental Protection Agency (EPA) would be required from 2023 to 2032 to set RFS renewable volume requirements (RVOs) for advanced biofuel, cellulosic biofuels and biomass diesel at levels equal to the volume of these fuels produced during the previous calendar year, according to the draft, and a mid-year review would be utilized to adjust the annual RVOs based on specific EPA information. The remaining portion of the RFS would be repealed in 2033, the draft states.
“Since ethanol is one of the lowest-cost sources of octane in many areas of the country, a transition from the RFS beginning in 2023 to a national octane specification creates new market opportunities for biofuel producers and gives certainty to refining stakeholders,” Rep. Flores said last week in unveiling the discussion draft. “Most importantly, the draft legislation preserves consumer choice and optimum fuel and vehicle costs for more efficient transportation for future decades.”
Regarding ethanol, states would not be allowed to prohibit or require any specific blend, concentration or percentage of ethanol in any automotive fuel, according to the draft, which also would extend a current Reid vapor pressure (RVP) waiver to fuel blends having in excess of 10 percent ethanol.
Rep. Flores noted that a lot has changed in the vehicle and fuels markets since the RFS was established in 2005 and then expanded in 2007.
“We have learned from robust stakeholder input through hearings, roundtables and meetings, that higher octane fuels can bring increased fuel economy and performance for next generation engines,” he said.
Rep. Shimkus, whose Illinois district includes major corn and soybean producers and ethanol and oil refiners, said his goal during this session of Congress “was to look beyond just the Renewable Fuel Standard to comprehensively reshape federal transportation fuel policies in a way that could provide more value to consumers and more certainty to industry stakeholders.”
The lawmakers added that they appreciated input from stakeholders “and look forward to continuing to improve upon the policies and legislative language we’ve put forward for consideration and discussion.”