Ethanol and oil industries decry new fuel economy standards

Gas and biofuel trade groups say new Biden administration rules that call for cars and pickup trucks to average 50.4 miles per gallon of fuel by 2031 unwisely quash the potential role of liquid fuels. The American Petroleum Institute said Congress should override the new corporate average fuel economy (CAFE) standards, released on Friday.

The CAFE standards call for a 2-percent-per-year increase in fuel economy by passenger cars for model years 2027-31, and by pickup trucks for model years 2029-2031. Cars and trucks would average approximately 50.4 miles per gallon by model year 2031. “Not only will these new standards save Americans money at the pump every time they fill up, they will also decrease harmful pollution and make America less reliant on foreign oil,” said Transportation Secretary Pete Buttigieg.

“This proposal unfortunately ignores the potential of bioethanol to help reduce greenhouse gas emissions,” said Emily Skor, chief executive of the biofuel trade group Growth Energy. “The carbon intensity of American bioethanol continues to go down, making it more and more useful as a decarbonization tool for on-road applications.”

“Combined with EPA’s recently finalized tailpipe emissions standards, these rules amount to a de facto ban by the administration on the sale of new cars and trucks using liquid fuels, which can and should be a part of the solution as we look to reduce carbon emissions,” said the oil industry.

Earlier this year, the EPA issued so-called tailpipe regulations calling for a lower volume of air pollutants from passenger cars and pickup trucks. The tailpipe rule was expected to encourage automakers to market more electric vehicles although they could use any technology they want.

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