December 13, 2007
Senate Energy Bill Establishes Breakthrough Fuel Economy and Fuels Standards
Renewable Energy Development in Limbo
WASHINGTON (December 13, 2007) – In an 86 to 8 vote, the Senate today passed a landmark energy bill strengthening vehicle fuel economy standards for the first time in 30 years and requiring a significant increase in biofuel production. Lawmakers twice failed to muster the necessary 60 votes to end debate on more comprehensive legislation including renewable energy standards and tax incentives. So to avoid a filibuster and a veto by the White House, Senate leadership moved forward with a trimmed down bill, which is expected to pass early next week in the House before going to President Bush to be signed into law.
“We've turned a corner. Congress has finally taken action to cut America's oil dependence by giving the country more fuel efficient cars and trucks,” said Michelle Robinson, director of UCS's Clean Vehicles Program. “Now the only thing standing between Americans and relief at the pump is the president’s signature.”
The bill's hallmark provision would boost Corporate Average Fuel Economy (CAFE) standards to a fleetwide average of at least 35 miles per gallon (mpg) by 2020. This represents an increase of more than 10 miles per gallon from the current fleetwide average. A UCS analysis found that these standards would save more than 1.1 million barrels of oil per day in 2020, about half of what the United States currently imports from the Persian Gulf. As a result, consumers would save $22 billion dollars in 2020—even after paying the cost of the necessary fuel economy technology. By reducing U.S. oil consumption, the provision would prevent more than 190 million metric tons of global warming pollution, the equivalent of taking 28 million of today's average cars and trucks off the road. At the same time, it leaves all existing laws intact, keeping the door open to efforts underway at both the federal and state level to reduce vehicle global warming emissions.
The bill also would bolster the country's Renewable Fuels Standard (RFS), requiring the production of as much as 36 billion gallons by 2022. To encourage cleaner biofuels, the standard would require that 21 billion gallons come from fuels that release at least 50 percent less global warming pollution than gasoline. Further, 16 billion gallons of the advanced biofuels requirement would have to be produced from cellulosic biofuels with at least 60 percent lower global warming emissions than gasoline. Finally, the standard stipulates that the remaining biofuels produced to satisfy the RFS emit at least 20 percent less global warming pollution than gasoline.
“While this energy bill does take a big step toward addressing our growing oil dependence and rising gas prices, the Senate was forced to remove any tax or market-based incentives to increase our nation's use of clean renewable energy,” said Marchant Wentworth, Washington representative for UCS's Clean Energy Program. “That means the farmers, engineers and entrepreneurs who are trying to provide Americans cheaper, cleaner energy are now in limbo. By threatening to veto both the Renewable Electricity Standard and tax incentives, the White House has hamstrung this burgeoning industry, delaying the development of clean homegrown, renewable energy that will create jobs and save consumers money.”
The Union of Concerned Scientists is the leading U.S. science-based nonprofit organization working for a healthy environment and a safer world. Founded in 1969, UCS is headquartered in Cambridge, Massachusetts, and also has offices in Berkeley, Chicago and Washington, D.C.
