Ethanol Ditched as Biden Unveils Plan to Phase Out Gas Cars, Says 'There's No Turning Back'

President Biden is continuing the push to get more electric vehicles on the road by signing a new executive order Thursday. The order sets a goal of having 50% of all new vehicles sold in 2030 be zero-emissions, which means a focus on battery electric, plug-in hybrid electric, or fuel cell electric vehicles. 

The future of the auto industry is electric. There’s no turning back. — President Biden (@POTUS) August 5, 2021

"A future of the automobile industry that is electric battery, electric plug in hybrid, electric, fuel cell, electric," says Biden. "It's electric, and there's no turning back. The question is whether it will lead or fall behind in the race for the future. It's whether we will build these vehicles and the batteries that got them to where they are here in the United States. We're going to have to rely on other countries for those batteries."

The Biden administration also unveiled updated emissions standards for light cars and trucks, which will cover model years 2021 to 2026. The rule will require auto makers to meet more stringent fuel efficiency standards. The White House fact sheet on the plan made no mention of how or if ethanol and other biofuels will be part of the President's plan. Instead, the White House says the plan will:

• Install the first-ever national network of electric vehicle charging stations
• Deliver point-of-sale consumer incentives to spur U.S. manufacturing and union jobs
• Finance the retooling and expansion of the full domestic manufacturing supply chain
• Innovate the next generation of clean technologies to maintain our competitive edge

After the announcement, automakers announced their support in working with the White House to achieve the newly outlined goals. 

“Today, Ford, GM and Stellantis announce their shared aspiration to achieve sales of 40% to 50% of annual U.S. volumes  of electric vehicles (battery electric, fuel cell and plug-in hybrid vehicles) by 2030 in order to move the nation closer to a zero-emissions future consistent with Paris climate goals,” the automakers said in a joint statement. “We look forward to working with the Biden Administration, Congress and state and local governments to enact policies that will enable these ambitious objectives.”

Biofuels Groups Say Plan Misses the Mark 

After the announcement, renewable fuels groups were quick to respond, saying the only way the President will meet this goal is by tapping into a low-carbon fuel already available today, which they say is ethanol. 

“In order for the proposed CAFE standards to effectively address climate change, this rule needs to include a pathway to increase the use of low-carbon, sustainable biofuels like ethanol in our nation’s fuel supply," says Growth Energy CEO, Emily Skor. "We will be providing the Biden administration a pathway forward that allows biofuels like ethanol to help us meet our climate goals."

“Time is of the essence if we’re going to meet the President’s ambitious goals for reducing emissions,” says John Linder, president of the National Corn Growers Association (NCGA). “The good news is we don’t have to wait until 2030 for new vehicles and technologies to reduce emissions. Thanks to today’s ethanol, we can use fuel available right now, in the vehicles we’re all driving today, to make a difference.”

Growth Energy says an independent analysis done just this year from the Rhodium Group shows that in order for the U.S. to fully decarbonize the transportation sector, biofuels will have a crucial role in helping reduce greenhouse gas emissions when coupled with electric vehicles. 

“Growth Energy calls on the Biden Administration to continue the momentum on transportation decarbonization by creating long-term market and policy certainty in the biofuels space by fully implementing the RFS, accelerating the transition to E15, and helping harness the power of rural America to drive down emissions from the transportation sector by investing in renewable biofuels. We look forward to outlining the environmental and economic benefits of biofuels in our comments to the agency on this proposed rule and continuing to champion biofuels as a solution to decarbonizing transportation today.” 

NCGA says a way to immediately lower greenhouse gas emissions is to tap into higher volumes of ethanol. NCGA says more low-carbon liquid fuels will be needed to decarbonize transportation on a timely and affordable basis.

“We encourage policymakers to focus more on outcomes and less on the specific technologies to reach these goals,” said Linder. “The most recent analysis from the Department of Energy shows that today’s ethanol reduces emissions by about half compared to gasoline, due in large part to our sustainable corn production. With our commitments to continued improvements, farmers are ready to help ensure clean, renewable ethanol reaches net-zero emissions.”

A Different Track 

The ethanol industry is still grappling with two recent court decisions that were seen as a blow to renewable fuel, including the decision to stop the sale of E15 year round. And just recently, Reuters reported the White House would not be releasing the updated biofuels blending mandates as required in the RFS, citing too many political concerns. 

Just six months ago, renewable fuels groups were hopeful Biden would be the answer in restoring the integrity of the RFS. But now, the White House seems to be on a different track, as the push to go electric by the Biden administration, the two recent court rulings and the White House's recent decision to not release the updated biofuel blending mandates are all pointing to less support of America's renewable fuels.