Biological Evidence 2024, Vol.14, No.1, 1-10 http://bioscipublisher.com/index.php/be 6 2.3 The import and export situation of ethanol fuel in the United States In 2017, the United States exported nearly 1.4 billion gallons of fuel ethanol, surpassing the previous record set in 2011 at 1.2 billion gallons. During the same year, the import of ethanol into the United States increased compared to 2016, but the relative quantity was much lower, standing at 77 million gallons, marking the country's eighth consecutive year as a net exporter of ethanol. With corn production and ethanol capacity surpassing domestic ethanol consumption, the United States maintained an upward trend in fuel exports for eight consecutive years. By 2017, the U.S. exported fuel ethanol to 35 countries, with over half of the exports going to Brazil and Canada. The fuel ethanol exports to Brazil from the United States have seen a continuous four-year growth, reaching 450 million gallons in 2017, constituting nearly one-third of the total U.S. fuel ethanol. Canada stands as the second-largest destination market for U.S. fuel ethanol exports, importing nearly 33 million gallons in 2017, marking a 5% increase from the previous year. In 2016, China became the third-largest importing country for U.S. fuel ethanol. 3 Policies and Regulations of Ethanol Fuel 3.1 Legislation and regulation In 2007, the Energy Independence and Security Act instructed the Department of Energy to assess the feasibility of using mid-level ethanol blends in existing vehicles. The National Renewable Energy Laboratory (NREL) evaluated the potential impacts on legacy vehicles and other engines. In October 2008, NREL released a preliminary report describing the effects of E10, E15, and E20 on exhaust and evaporative emissions, catalyst and engine durability, vehicle drivability, engine operability, and vehicle and engine materials. The report found that no vehicles displayed fault indicator lights, no symptoms of fuel filter plugging were observed, no cold-start issues were observed under laboratory conditions (24 °C (75°F) and 10 °C (50°F)), and all test vehicles exhibited fuel economy losses proportional to the lower energy density of ethanol. For instance, compared to natural gas (E0) test vehicles, E20 showed an average fuel economy reduction of 7.7%. The Obama administration set a goal to install 10,000 blender pumps across the country by 2015. These pumps can dispense various blends, including E85, E50, E30, and E20, which can be used by E85 vehicles. In May 2011, the U.S. Department of Agriculture (USDA) issued a regulation that included flex-fuel pumps under the Rural Energy for America Program (REAP). This ruling provided financial assistance to gas station owners for installing E85 and blender pumps through grants and loan guarantees. In May 2011, with bipartisan support, the Open Fuel Standard Act (OFS) was introduced to Congress. This bill required that by 2014, 50% of vehicles produced, by 2016, 80% of vehicles produced, and by 2017, 95% of vehicles produced must be manufactured and warranted to run on non-petroleum fuels. These fuels include flexible fuels, natural gas, hydrogen, biodiesel, plug-in electric vehicles, and fuel cells, among other existing technologies. Considering the rapid adoption of flexible-fuel vehicles in Brazil and the relatively low cost of making a vehicle flexible-fuel (approximately $100 per vehicle), the primary goal of this bill was to promote the widespread adoption of flexible-fuel vehicles capable of running on ethanol or methanol fuels. In November 2013, the U.S. Environmental Protection Agency (EPA) sought public opinions on reducing the volume of ethanol required in the U.S. gasoline supply, in accordance with the 2007 Energy Independence and Security Act. The agency pointed out the challenges of increasing ethanol blend percentages to above 10%. This limitation is referred to as the "blend wall," signifying the practical difficulties in introducing increasing amounts of ethanol into the transportation fuel supply, exceeding the quantity achieved by selling almost all gasoline as E10. 3.2 Tariffs and tax incentives From the 1980s to 2011, U.S. ethanol producers were protected by a 54-cent-per-gallon import tariff primarily aimed at restraining the import of Brazilian sugarcane ethanol. Starting in 2004, blender pumps received a tax credit for every gallon of ethanol blended into transportation fuels. Historically, the tariff was designed to offset the federal tax credits applicable to ethanol, regardless of the country of origin. Several countries in the Caribbean
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