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ACE Calls for a Legislative Hearing to Highlight How the Next Generation Fuels Act Would Remove Ethanol Market Barriers and Could Be Improved to Reward Efficient Ethanol Producers

Following Congresswoman Cheri Bustos (D-Ill. 17th) recent introduction of the “Next Generation Fuels Act of 2021” (H.R. 5089), the American Coalition for Ethanol (ACE) today called for a legislative hearing on the bill in order to receive testimony on how it would remove market barriers to ethanol and improvements that should be made to the legislation to reward farmers for climate-smart practices and ethanol producers for investments to reduce the carbon intensity of their fuel.

In a letter to House Committee on Energy and Commerce Chairman Frank Pallone, Jr., ACE CEO Brian Jennings outlined that ACE is aligned with bill supporters about how it would overcome a host of ethanol market barriers, but that the organization prefers to see improvements in the “low carbon octane” provision of the legislation.

“ACE strongly supports the fact that H.R. 5089 would remove many ethanol market barriers and requires the latest GREET model for lifecycle assessment but believes lifecycle analysis should be conducted at the facility level and specifically include GHG reductions made in the production of biofuel crops to ensure federal policies incent further reductions in carbon intensity and reward companies taking these steps,” according to the letter from Jennings.

The legislation would establish a low carbon octane standard which requires high octane fuel to be produced from sources with average lifecycle GHG emissions at least 40 percent cleaner than gasoline. ACE members believe the use of an average lifecycle GHG emissions threshold would penalize many ethanol companies that have made investments to reduce the carbon intensity of their fuel and remove the incentive for facilities to make further GHG reductions.

“While a handful of ethanol facilities who currently do not meet a 40 percent carbon intensity reduction compared to gasoline may not agree with ACE on the need for a facility-specific approach to lifecycle analysis, we all support advancing the other provisions of H.R. 5089 to remove ethanol market barriers,” Jennings said. “ACE also believes it is important for the ethanol industry to demonstrate a genuine commitment to be part of the climate solution. Our call for a legislative hearing on the Next Generation Fuels Act is an attempt to facilitate these important discussions in Congress.”

A copy of the letter can be accessed here.

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