New study shows lower carbon fuels in light duty vehicles reduce GHG emissions faster than new EPA standards

In Washington, increased use of lower-carbon liquid fuels in light-duty vehicles would lead to larger and faster reductions in greenhouse gas (GHG) emissions than EPA’s recently finalized EV-forcing tailpipe emissions standards, according to a new study commissioned by the RFA and executed by an independent not-for-profit research institute.

The study also found that if automakers rely primarily on BEVs to meet EPA’s tailpipe standards and if 17 states adopt California’s “zero emissions vehicle” mandate, U.S. liquid fuel consumption in 2035 will fall 38 billion gallons (compared to 2022 levels) and electricity consumption will jump 480 terawatt hours (roughly twice as much electricity as California uses annually).

A second study by the research institute shows that if the existing fleet of flex fuel vehicles (FFVs) used modestly larger amounts of E85, substantial GHG emissions reductions could be achieved. And, if those FFVs used only E85, GHG emissions would be reduced by up to 54 million metric tons per year—equivalent to almost 40 percent of EPA’s estimated GHG savings in 2035 from the new tailpipe standards.

The study notes that using E85 in FFVs, which account for more than 8 percent of today’s on-road fleet, also would save consumers money at the pump. “In addition to the greenhouse gas benefits, E85 generally offers a retail price advantage,” the study found. “If all FFVs nationwide consumed only E85, it would result in annual savings of over $2.2 billion,” even when prices are adjusted to reflect E85’s lower energy density.