Multi-Industry letter opposing S.A. 1657, the "Open Fuels Standard"

The Honorable Harry Reid
Majority Leader
United States Senate
Washington, DC 20510

The Honorable Mitch McConnell
Republican Leader
United States Senate
Washington, DC 20510

Dear Leaders Reid and McConnell:

We are writing to urge you to oppose an amendment to S. 1813, sponsored by Sens. Cantwell and Lugar (S.A. 1657, the “Open Fuels Standard”), which would effectively mandate that 80 percent of gasoline-powered light-duty vehicles be tri-fuel vehicles capable of running on any combination of ethanol, methanol, and gasoline beginning in model year 2018. This highly controversial and costly consumer mandate has not been the subject of a hearing nor a vote in Committee and is more appropriately considered in the context of an energy bill and not a bill focused on transportation infrastructure and safety.

The effectiveness of alternative fuels depends critically on their price, their availability and consumers’ willingness to use the fuel. It is important to note that consumers who want vehicles capable of running on fuel blends of up to 85% ethanol mixed with gasoline already have the option to buy them. Currently, there are nearly 10 million FFVs on U.S. roads, yet on average they use less than a single tankful of E85 per year. However, there are no tri-fuel vehicles available for purchase today, because the only place methanol is being produced for use as transportation fuel in commercial quantities is China.

At a time when many policy makers are questioning the costs of ethanol to taxpayers, the environment and the food supply, effectively imposing a massive new tax on consumers for a car that can run on ethanol and methanol makes no sense. The tri-fuel vehicle mandate proposed in S.A. 1657 will cost consumers billions of dollars per year to buy vehicles that are not offered for sale today and for which there is no fuel currently being produced in the US.

The Open Fuels Standard is a misguided consumer mandate that will lead to unintended consequences on vehicle manufacturers, the supply chain and emerging technologies. Simply put, S.A. 1657 to S. 1813 should not become law.

Thank you for your consideration.

Alliance of Automobile Manufacturers
American Automotive Policy Council
American Fuel & Petrochemical Manufacturers
American International Automobile Dealers Association
American Meat Institute
American Petroleum Institute
Americans for Limited Government
Association of Global Automakers
Competitive Enterprise Institute
Freedom Action
Grocery Manufacturers Association
Motor & Equipment Manufacturers Association
National Council of Chain Restaurants
National Automobile Dealers Association
National Black Chamber of Commerce
National Chicken Council
National Marine Manufacturers Association
National Meat Association
National Turkey Federation
Outdoor Power Equipment Institute
Specialty Equipment Market Association
Truck & Engine Manufacturers Association
U.S. Chamber of Commerce