Rogers / 5 Senator Law

S.W._____

A BILL
To create a one time tax rebate at purchase to incentivize the purchase of flexible fuel vehicles.
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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE
This act may be cited as the Flexible Fuel Act of 2015.
SECTION 2. FINDINGS
Congress hereby finds and declares that,
1)Ethanol is a domestically produced and renewable alcohol fuel made from plant material such as corn, sugarcane,
or certain grasses.
2) Ethanol fuel is available in the form of E85, a blend of fuel containing 51%-83% ethanol, for use in Flexible Fuel
Vehicles.
3) In 2004, the use of ethanol in fuel reduced the greenhouse gas emissions of the United States by approximately 7
million tons.
4) On a full life-cycle basis, corn based ethanol production and use in the United States reduces greenhouse gas
emissions by up to 52% over traditional gasoline vehicles.
5) According to the National Ethanol Vehicle Coalition, the overall energy advantage of ethanol over gasoline is
three to one, expected to increase to 9 to 1 once the industry moves away from food crops and towards waste
vegetation, which are cheaper to grow.
6) Flexible fuel vehicles are versatile and can run on any percentage blend of gasoline and ethanol currently available
on the market.
7) Flexible fuel vehicles suffer no loss of performance and some generate more horsepower and torque while running
on E85 fuel.
8) In 2003 ethanol production and use lowered American petroleum imports from a projected 41% to 33%, reducing
American dependence on foreign oil.
9) Flexible fuel vehicles hold an advantage for automakers, as there is not much additional cost to produce a flexible
fuel vehicle over a normal gasoline fueled car, while hybrids have a much higher production price, forcing
consumers to pay more as well.
10) Today, the United States has nearly 8 million FFVs on the road. These vehicles are available in a range of models,
including sedans, pick-up trucks, and minivans.
11) Since 1980, use of fuel ethanol has increased from less than 200 million gallons in 1980 to 3.4 billion gallons in
2004.
12) The huge positive energy balance for cellulosic ethanol is caused by little use of fertilizer for farming of
cellulosic biomass and use of the unfermentable portion of biomass in cellulosic ethanol plants to generate steam and
electricity.
13) Other cellulosic biomass feedstocks such as crop residues (such as corn stover, wheat straw, and rice straw, etc.),
forest residues, and municipal solid waste could also be used for cellulosic ethanol production.
SECTION 3. STATUTORY LANGUAGE
A) The Flexible Fuel Act of 2015 shall hereby introduce a tax rebate of 2,500 dollars at the initial purchase of any
flexible fuel vehicle by a US citizen. The United States Department of Energy defines a flexible fuel vehicle as any
vehicle that can be fueled with unleaded gasoline, E85, or any combination of the two. The rebate shall be applied
once the citizen mails in proof of their purchase of a flexible fuel vehicle to the IRS, and shall not be applied if proof
is not received within 60 days of the initial purchase of the vehicle.
B) The Flexible Fuel Act of 2015 shall be administered and enforced by both the United States Department of Energy
and the IRS. Funding shall be set at a budget of 7,800,000 dollars per year, to be allocated by increasing the income
tax by 0.0003025 percent. By January 1 of each year, The Department of Energy will produce a list of qualifying
flexible fuel vehicles for the IRS to use when receiving proof of purchase and administering the tax rebate.
C)This bill shall be enacted on January 1, 2016, and shall come under inspection every 25 years.

Use of flexible fuel vehicles decreases dependence on fossil fuels simply by decreasing need through the use of
ethanol. Ethanol is an alcohol fermented from any plant material that contains starch (Godman, 54). Flexible fuel
vehicles can use a blend of gasoline known as E85, containing up to 85% ethanol. That means that a flexible fuel
vehicle that is running on E85 only uses 15% of the gasoline that a normal gas-powered car would use. Taking into
consideration the amount of FFVs on the road, this is a drastic drop in fossil fuel use. The AFDC compiled statistics
affirming this: In 2005, 60% of petroleum products were imported, however, that was reduced to 33% in 2013 as a
result of increased domestic crude supplies and ethanol production -- Imports would have reached 44% without
ethanol (energy.gov). Thats an 11% decrease in foreign oil use, increasing Americas independence from fossil fuels
and foreign economies. According to the United States Environmental Protection Agency: The United States is
currently the worlds largest ethanol producer, and most of the ethanol we use is produced domestically from corn
grown by American farmers. (epa.gov) Not only is ethanol production and use decreasing our dependence on fossil
fuels, it is also strengthening our economy by increasing domestic spending. Ethanol use in FFVs clearly decreases
our dependence on fossil fuels and pumps money into our economy, and due to the nature of the resource, will
continue to do so for years to come.
Ethanol is a highly renewable resource, giving it a distinct advantage over fossil fuels. Fossil fuels
such as gasoline and diesel are finite, as they are made from prehistoric plants that were under a great amount of heat
and pressure. Ethanol is produced from plants grown just before they are used, allowing us to produce, theoretically,
as much as we need. The state of Nebraska conducted a study concluding that America has the capacity to produce
15.1 billion gallons of ethanol per year with our current number of operating refineries (neo.ne.gov). With more
ethanol refining plants being built every year, this number is still increasing, and would no doubt increase
proportionally with the amount of FFVs on the road. Most of Americas ethanol currently comes from corn, however
according to the Energy Information Administration ethanol can also be produced from cellulosic feedstock such as
wood, grasses, straw, and agricultural waste (eia.gov). While food crops are still renewable, using waste materials
such as those mentioned in the above quote is even more efficient and allows for a greater net output from each plant.
The renewability and accessibility of ethanol is increasing, allowing for an increased reliance on it for fuel, but this is
not nearly the biggest effect an increased number of FFVs would have on the US.
Easily the largest and most important effect an increased number of FFVs would have is on the environment.
Burning E85 fuel is significantly less damaging to the atmosphere than normal gasoline, as it produces far fewer
greenhouse gases. Not only does the use of ethanol produce less greenhouse gas, but its production actually reduces
some of what is already there. According to the AFDC: On a life cycle analysis basis, corn-based ethanol production
and use reduces greenhouse gas emissions (GHGs) by up to 52% compared to gasoline production and use
(energy.gov). This wide discrepancy is due to the fact that when the crops being used to produce ethanol are growing,
they take in CO2 during photosynthesis, thus offsetting the output of the FFVs using the fuel. Gasoline, on the other
hand is made of plants that grew hundreds of thousands of years ago, allowing for no carbon offset during
production. The scale on which ethanol reduces GHGs is shocking. According to a study done by the Argonne
National Laboratory in 2004, Americas use of ethanol decreased its GHG emissions by roughly 7 million tons
(edmunds.com). With an increased amount of FFVs on the road, this number is sure to have risen, and will continue
to rise. The health of the environment is one of the most important issues of not only the US but the world today, yet
there are still some who would say FFVs are not worth it.
As you can see, an increased number of FFVs would decrease our dependence on fossil fuels, promote the
use of a clean and easily renewable resource, and most of all help the environment. If passed my bill would
incentivize the purchase of many FFVs and in turn stimulate all these changes. In a world which needs leaps and
bounds to become sustainable, my bill would be a step in the right direction. It is an easy way to start divesting from
harmful fossil fuels, which we must do to keep our society and environment intact. It would assist in the weaning of
Americans off fossil fuels and in turn decrease our carbon footprint and strengthen our nation. There is a long road
ahead on the journey to sustainability, and passing this bill would set us off on the right course.