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US Lawmakers Want to Boost Ethanol’s Green Appeal as EVs Threaten Fuel Use

(Bloomberg) — US representatives from Iowa, Illinois, Texas and Oklahoma are introducing a bill that would allow corn-based ethanol to qualify as an “advanced biofuel” — a bid to boost the gasoline additive’s green credentials.

The bipartisan legislation is bringing together lawmakers from Midwestern states that grow corn along with regions tied to oil production. It’s a rare move that shows how factions that were once at odds are now working together as the proliferation of electric vehicles is threatening demand for both biofuels and traditional gasoline.

“Liquid fuels are the backbone of our society, which is why I’m ecstatic to support this legislation,” Representative Wesley Hunt, a Republican from Texas who is among those introducing the bill, said in a statement. “Congress must promote programs that encourage the internal combustion engine, which will remain commonplace in our society for generations to come.”

In years past, lawmakers from oil-producing states and those from the Corn Belt have clashed over how much ethanol should be blended into gasoline. But as consumers turn to EVs to reduce their carbon footprint, crop growers and fossil-fuel producers are looking to the biofuel as a way to boost the appeal of gasoline-powered cars.

Representative Mariannette Miller-Meeks, an Iowa Republican, is leading the legislative effort.

Biofuel use in the US is governed by a policy known as the Renewable Fuel Standard, or RFS. Corn-based ethanol is currently prohibited from qualifying as an advanced biofuel, even if it can meet the required scientific thresholds, under that regulation.

©2023 Bloomberg L.P.

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