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ACE: Next Generation Fuels Act Supports Market Growth for High Octane Ethanol

The American Coalition for Ethanol (ACE) today thanked Sen. Chuck Grassley (R-IA), Sen. Amy Klobuchar (D-MN), Sen. Joni Ernst (R-IA), and Sen. Tammy Duckworth (D-IL) for reintroducing the Next Generation Fuels Act. The bill is designed to overcome a host of barriers to the use of higher ethanol blends by creating a new high octane fuel standard, limiting aromatics in gas, ensuring all blends of ethanol receive the same RVP treatment as E10, and requiring future vehicles and retail fuel stations to be compatible with higher ethanol blends, among addressing other regulatory impediments to the deployment of higher octane blends.

“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 ACE CEO Brian Jennings. “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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