WORKING FOR AN UPDATED F FACTOR
The automobile industry is asking the Trump Administration to return to a credit-system that makes the production of flex-fuel vehicles (FFVs) more attractive from a production perspective as it assists the manufacturers in meeting the mandated corporate average fuel economy (CAFE) and greenhouse gas emissions (GHG) mandates.
The Obama Administration rolled back the value of these credits and increase the value of electric vehicles in reaching the CAFE and GHG mandates.
The relevant credit is called the F-Factor. The Auto Alliance, representing the industry, sent a letter to USEPA requesting that USEPA provide guidance for an updated F-Factor from 2020 through 2025. The F-Factor is the % of time that the average FFV in a fleet uses E-85. It is an important number in the calculation of the credit an auto maker will receive by producing an FFV vehicle. The higher the F-Factor, the higher the value of the credit to the automaker. This new F-Factor, according to both Ford and GM, will help bring back FFV vehicles.
IL Corn is working with the Auto Alliance to support this move to an updated F-Factor. It is among other items on our list of needs that we’ve presented to the White House, EPA, USDA, and Congress, to improve farm profitability through increased market access for corn-based ethanol. Removing regulatory burdens has been a top priority of President Trump, so we’re hoping he will join us in pushing for changes such as the F-Factor update.