Legislation and Regulation

7. U.S. Environmental Protection Agency, 40 CFR Parts 59, 80, 85 and 86 [EPA-HQ-OAR-2005-0036; FRL- 8278-4], RIN 2060-AK70, “Control of Hazardous Air Pollutants from Mobile Sources; Final Rule,” Federal Register, Vol. 72, No. 37 (February 26, 2007), web site http://edocket.access.gpo.gov/2007/pdf/E7-2667. pdf. Most of the data cited here were taken from this source.

8. For the complete text of the Energy Independence and Security Act of 2007, see web site http:// frwebgate. acess.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_ public_laws&docid=f:publ140.110.pdf.

9. See, for example, web site http://energy.senate.gov/ public/_files/HR6EnergyBillSummary.pdf.

10. Footprint is the product of track width and wheelbase, measured in square feet.

11. Energy Policy Act of 2005, Section 1501.

12. “DuPont and BP Reveal Biobutanol Test Results” Ethanol & Biodiesel News (April 23, 2007).

13. DuPont, “Alternative Fuels and Potential Material Compatibility Issues,” DuPont Automobile Annual Fuel Luncheon (April 16, 2008).

14. Energy Information Administration, Annual Energy Outlook 2007, DOE-EIA-0383(2007) (Washington, DC, February 2007), “Legislation and Regulations: Excise Taxes on Highway Fuels,” p. 25, web site www. eia.doe.gov/oiaf/archive/aeo07.

15. U.S. Department of the Treasury, Internal Revenue Service, Excise Taxes for 2007, Publication 510 (1/2007) (Washington, DC, Revised January 2007), web site www.irs.gov/publications/p510.

16. Defense Energy Support Center, “Compilation of United States Fuel Taxes, Inspection Fees, and Environmental Taxes and Fees” (June 29, 2007).

17. U.S. Department of Energy, Energy Efficiency and Renewable Energy, Alternative Fuels & Advanced Vehicles Data Center, “Volumetric Ethanol Excise Tax Credit (VEETC),” web site www.eere.energy.gov/afdc/ progs/view_ind_fed.php/afdc/399/0.

18. E85 is a fuel containing a blend of 70 to 85 percent ethanol and 30 to 15 percent gasoline by volume.

19. VEETC was established by the American Jobs Creation Act of 2004, Section 301. Before VEETC, gasoline blended with 5.7 percent, 7.7 percent, or 10 percent ethanol received an excise tax reduction equivalent to 51 cents per gallon of ethanol; however, the applicable excise tax reduction for blends with any other ethanol percentage was equivalent to less than 51 cents per gallon of ethanol. This was an especially serious impediment to blenders of E85.

20. VEETC provided biodiesel tax credits for 2005 and 2006. EPACT2005, Section 1344, extended the biodiesel tax credits through 2007 and 2008.

21. The Food, Conservation, and Energy Act of 2008 (Public Law 110-234), which was enacted in May 2008, contains several tax provisions related to biofuels. The bill reduces the ethanol blending tax credit from 51 cents to 45 cents per gallon once annual ethanol production or import volumes reach 7.5 billion gallons; extends the ethanol import tariff through 2010; and establishes a tax credit for cellulosic biofuels of up to $1.01 per gallon produced. The AEO2008 reference case projects ethanol production of 8.5 billion gallons in 2008, which would trigger the blending tax credit reduction in 2009. AEO2008 does not include consideration of the Food, Conservation, and Energy Act of 2008, which was enacted too late for inclusion.

22. EPACT2005, Section 1347, increased the production volume for small producers from 30 million to 60 million gallons, starting in 2006.

23. Most of the data cited in this section are taken from U.S. Environmental Protection Agency, 40 CFR Parts 59, 80, 85, and 86, “Control of Hazardous Air Pollutants From Mobile Sources; Final Rule,” Federal Register, Vol. 72, No. 37 (February 26, 2007), pp. 8428-8570, web site http://edocket.access.gpo.gov/2007/pdf/ E7-2667.pdf.

24. The subsidy cost—essentially the expected cost of the program, excluding administrative expenditures— generally equals the amount of the loan multiplied by the probability of default. The actual computation of the “subsidy cost” and whether it represents the true cost of the program are complex issues far beyond the scope of this section of AEO2008. For more details on government loan guarantee programs, see Energy Information Administration, Federal Financial Interventions and Subsidies in Energy Markets 2007, SR/CNEAF/2008-01 (Washington, DC, April 2008), web site www.eia.doe.gov/oiaf/servicerpt/subsidy2/index.html.

25. Energy Information Administration, Annual Energy Outlook 2007, DOE/EIA-0383(2007) (Washington, DC, February 2007), “Loan Guarantees and the Economics of Electricity Generating Technologies,” pp. 48-49, web site www.eia.doe.gov/oiaf/archive/aeo07/pdf/ issues.pdf.

26. U.S. House of Representatives, 110th Congress, “Energy and Water Development Appropriations Bill, 2008” (House Report 110-185, June 11, 2007); and U.S. Senate, 110th Congress, “Energy and Water Appropriations Bill, 2008” (Senate Report 110-127, July 9, 2007), web site www.access.gpo.gov/congress/ legislation/08appro.html.

27. See, for example, testimony of Christopher Crane, Senior Vice President, Exelon Corporation, and President and Chief Nuclear Officer, Exelon Nuclear, before the Subcommittee on Energy and Air Quality, Committee on Energy and Commerce, U.S. House of Representatives (April 24, 2007), web site http:// energycommerce.house.gov/cmte_mtgs/110-eaq-hrg. 042407.Crane-testimony.pdf.

28. U.S. Department of Energy, Loan Guarantee Program, “DOE Releases Information on Loan Guarantee Pre-Applications” (March 6, 2007), web site www. lgprogram.energy.gov/press/030607.html.

29. Energy Information Administration, Annual Energy Outlook 2005, DOE/EIA-0383(2005) (Washington, DC, February 2005), “State Renewable Energy Requirements and Goals: Status Through 2003,” pp. 20-22, web site www.eia.doe.gov/oiaf/archive/aeo05/leg_reg. html.

30. Energy Information Administration, Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, February 2006), “State Renewable Energy Requirements and Goals: Update Through 2005,” pp. 24-27, web site www.eia.doe.gov/oiaf/archive/aeo06/leg_reg. html.

31. Energy Information Administration, Annual Energy Outlook 2007, DOE/EIA-0383(2007) (Washington, DC, February 2007), “State Renewable Energy Requirements and Goals: Update Through 2006,” pp. 28-30, web site www.eia.doe.gov/oiaf/archive/aeo07/leg_reg. html.

32. State of New Hampshire, H.B. 873, web site www. gencourt.state.nh.us/legislation/2007/HB0873.html.

33. General Assembly of North Carolina, S.B. 3, web site www.ncleg.net/Sessions/2007/Bills/Senate/PDF/S3v6. pdf.

34. Oregon Legislative Assembly, S.B. 838, signed into law by Governor Theodore R. Kulongoski on June 6, 2007, defines a large supplier as any generator that provides at least 3 percent of the State’s electric load, a medium- sized supplier as one that provides between 1.5 and 3 percent of the State’s load, and a small supplier as one that provides less than 1.5 percent of the State’s load. See web site www.oregon.gov/ENERGY/ RENEW/docs/sb0838.en.pdf.

35. Revised Code of Washington, Chapter 19.285, web site http://apps.leg.wa.gov/RCW/default.aspx?cite=19. 285.

36. State of Delaware, S.B. 19, web site http://depsc. delaware.gov/electric/delrps.shtml.

37. An alternative compliance payment is a payment to the State for not meeting their renewable energy goal. In some instances, there are different compliance payments (or penalties) for unique generation technologies.

38. State of Colorado, H.B. 07-1281, web site www.leg. state.co.us/clics/clics2007a/csl.nsf/fsbillcont3/C9B0B6 2160D242CA87257251007C4F7A?open&file= 1281_enr.pdf.

39. State of Connecticut, House Bill 7432, Public Act 07-242, web site www.cga.ct.gov/2007/ACT/PA/ 2007PA-00242-R00HB-07432-PA.htm.

40. State of Illinois, Public Act 095-0481, web site www. ilga.gov/legislation/publicacts/95/PDF/095-0481.pdf.

41. “Minnesota - Renewable Portfolio Standard,” web site www.dsireusa.org/library/includes/tabsrch.cfm?state =MN0type=RPS&CurrentPageID=7&EE=1&RE =1.

42. U.S. Environmental Protection Agency, “Clean Air Interstate Rule,” web site www.epa.gov/cair.

43. U.S. Environmental Protection Agency, “Clean Air Mercury Rule,” web site www.epa.gov/camr.

44. AEO2007 included a summary of the RGGI provisions in the original model rule. See Energy Information Administration, Annual Energy Outlook 2007, DOE/ EIA-0383(2007) (Washington, DC, February 2007), “State Regulations on Airborne Emissions: Update Through 2006,” pp. 30-32, web site www.eia.doe.gov/ oiaf/archive/aeo07/leg_reg.html.

45. State of California, “Senate Bill 1368,” web site www. energy.ca.gov/ghgstandards/documents/sb_1368_bill_ 20060929_chaptered.pdf.

46. California Environmental Protection Agency, Air Resources Board, “Proposed Regulations to Control Greenhouse Gas Emissions from Motor Vehicles,” web site www.arb.ca.gov/regact/grnhsgas/grnhsgas. htm (September 19, 2005).

47. State of California, “Assembly Bill No. 1493,” web site www.calcleancars.org/ab1493.pdf.

48. U.S. Environmental Protection Agency, “California Greenhouse-Gas Waiver Request,” web site www. epa.gov/otaq/ca-waiver.htm.

49. Office of the New York State Attorney General Andrew M. Cuomo, “Cuomo Leads Coalition of 15 States Against EPA in Battle for States’ Right To Fight Global Warming” (January 2, 2008), web site www. oag.state.ny.us/press/2008/jan/jan02a_08.html.

50. State of Washington, “Mitigating the impacts of climate change,” SB 6001 – 2007-08, web site http:// apps.leg.wa.gov/billinfo/summary.aspx?bill=6001.

51. State of Montana, House Bill No. 25, web site http:// data.opi.mt.gov/bills/2007/billpdf/HB0025.pdf.

52. State of Florida, Executive Order 07-126, “Leadership by Example: Immediate Actions to Reduce Greenhouse Gas Emissions from Florida State Government”; Executive Order 07-127, “Immediate Actions to Reduce Greenhouse Gas Emissions within Florida”; and Executive Order 07-128, “Florida Governor’s Action Team on Energy and Climate Change”; web site www.dep.state.fl.us/climatechange/eo.htm.