ACE helps retailers call on EPA to level the playing field for flex fuel vehicles in CAFE-GHG standards
Posted on 10/06/2017
Sioux Falls, SD (October 6, 2017) – In response to fuel marketers asking how they can help support their flex fuel infrastructure and customers, the American Coalition for Ethanol (ACE) organized a joint letter signed by fuel marketers and retailers representing nearly 160 convenience stores and gas stations urging the Environmental Protection Agency (EPA) to use the midterm evaluation of the 2022-2025 model year vehicle emissions and efficiency standards to level the playing field for alternative fuel technologies like flex fuel vehicles.
The letter is signed by Mike Lewis, Pearson Fuels; Kent Satrang, PetroServe USA; Bob O’Connor, Jetz Convenience Stores; Charlie Good, Good and Quick Tire and Auto Service; Dave Sovereign, Cresco Fuels; Taylor Nelson and Doug Nelson, Jackson Express; and Bruce Vollan, Midway Service.
“Specifically, we encourage EPA to restore incentives to automakers for the production of flexible fuel vehicles (FFVs) because they are an imperative tool in reducing petroleum use and greenhouse gas (GHG) emissions,” the letter stated. “This issue is critical to us because we have made significant investments in site upgrades and fueling equipment to offer our customers E85 and other flex fuels.”
Restoring FFV credits would help reduce GHG emissions at no cost to the federal government, while also reducing fuel cost for American drivers. There are more than 20 million FFVs on the road nationwide and E85 is currently priced between 50 to 60 cents less than regular gasoline at 4,000 fueling locations nationwide.The letter notes that investments are beginning to pay off as motorists fill up with cost-effective E85 at the highest volumes stations have ever seen.
The letter’s undersigned retailers expressed that without FFV incentives their investments will be stranded along with over $200 million in new flex fuel infrastructure investment made at other petroleum marketers’ businesses over the past two years. The rapid decline in FFV credits has already caused automakers to begin phasing out production of FFVs at the same time E85 use is increasing and E85 stations are expanding.
“It seems counterintuitive for EPA to take the FFV credit away from auto makers when flex fuel availability and use is finally expanding the way EPA had envisioned,” the letter stated. “Alternative fuel vehicle technologies should receive fair and equal treatment by the federal government, and the government needs to be patient and maintain consistent policies that support long-term investment in fuels and infrastructure.”
A copy of the letter can be accessed here.