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Incentives for Flexible Fuel Vehicles: Lowering CO2 Emission Standards.

This law aims to encourage car manufacturers to produce more vehicles capable of running on E85 fuel (an ethanol blend). It grants a 31% reduction in the calculated CO2 emissions value for flexible fuel vehicles when determining a manufacturer's overall fleet average. This regulatory change supports environmental goals by promoting alternative fuels and may increase the availability of E85-compatible cars for consumers.
Key points
Car manufacturers receive a 31% credit (lower CO2 value) for flexible fuel vehicles when calculating their required fleet average emissions.
The goal is to incentivize the production of vehicles that use E85 ethanol, which is recognized as reducing greenhouse gas emissions by 31% compared to gasoline.
The Environmental Protection Agency (EPA) must implement these regulatory changes within 120 days of the law's enactment.
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Additional Information
Print number: 118_S_2635
Sponsor: Sen. Klobuchar, Amy [D-MN]
Process start date: 2023-07-27