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Analysis of Corporate Average Fuel Economy (CAFE) Standards for Light Trucks and Increased Alternative Fuel Use

Notes and Sources

1 Letter from Sen. Murkowski to Mary J. Hutzler, dated December 20, 2001. See Appendix A for a copy of the original letter.

2 Letter from Sen. Murkowski to Mary J. Hutzler, dated February 6, 2002. See Appendix A for a copy of the original letter.

3 Email from Bryan Hannegan to Mary J. Hutzler dated February 21, 2002. See Appendix A for a copy of the original email.

4 Energy Information Administration, Annual Energy Outlook 2002, With Projections to 2020, DOE/EIA-0383(2002), (Washington, DC, December 2001).

5 For more information on the National Energy Modeling System see, The National Energy Modeling System: An Overview 2000, DOE/EIA-0581(2000), (Washington, DC, April 2000).

6 Light trucks include vehicles defined as pickup trucks, vans or minivans, and sport utility vehicles (SUVs).

7 Energy Information Administration, Annual Energy Outlook 2002, With Projections to 2020, DOE/EIA-0383(2002), (Washington, DC, December 2001).

8 National Research Council, Effectiveness and Impact of Corporate Average Fuel Economy (CAFÉ) Standards, (Washington, DC, 2002).

9 Sections 817 and 818 which provide biodiesel fuel use credits and specifies required renewable fuel content of motor vehicle fuels are discussed in a separate response, Summary of Renewable Fuels Standard/MTBE Cases Requested by the Senate Energy Committee.

10 Section 153 which would provide biodiesel credits is discussed in a separate response, Summary of Renewable Fuels Standard/MTBE Cases Requested by the Senate Energy Committee.

11 Possible effects of the transition to ultra low-sulfur diesel are discussed in Energy Information Administration, The Transition to Ultra-Low-Sulfur Diesel Fuel: Effects on Prices and Supply, SR/OIAF/2001-01, (Washington, DC, May 2001).

12 Vehicle technology inputs to the analysis include the cost, introduction date, and the impact a specific technology has on horsepower, vehicle weight, and fuel economy.

13 National Research Council, Effectiveness and Impact of Corporate Average Fuel Economy (CAFÉ) Standards, (Washington, DC, 2002).

14 In February of 2000, the Environmental Protection Agency finalized more stringent emissions standards for cars and light trucks to take effect in year 2004.

15 For purposes of discussing S. 1766, the following Sections have been reviewed: 811, 812, 814, 815, 816, and 819. Sections 817 and 818 which provide biodiesel fuel use credits and specifies required renewable fuel content of motor vehicle fuels are discussed in a separate response, Summary of Renewable Fuels Standard/MTBE Cases Requested by the Senate Energy Committee.

16 Section 301 of the Energy Policy Act of 1992 (EPACT) defines alternative fuel to include methanol, ethanol, natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, fuels derived from biological materials, and electricity.

17 The average gasoline gallons per gasoline-fueled vehicle was 557 gallons in 1999. Computed from Tables 17 and 19 in General Services Administration, FY1999 Federal Fleet Report, www.policyworks.gov/vehicles.

18 Possible effects of the transition to ultra low-sulfur diesel are discussed in Energy Information Administration, The Transition to Ultra-Low-Sulfur Diesel Fuel: Effects on Prices and Supply, SR/OIAF/2001-01, (Washington, DC, May 2001).

19 Source: www.schoolbusfleet.com.

20 The total number of school buses is estimated at 448.3 thousand by www.schoolbusfleet.com.

21 For purposes of reviewing H.R. 4, the following Sections have been reviewed: 151, 205, 206, 2101-2105, 2131-2133. Section 153 which would provide biodiesel credits is discussed in a separate response, Summary of Renewable Fuels Standard/MTBE Cases Requested by the Senate Energy Committee.

22 Emergency, police, and military vehicles are exempt.

23 General Services Administration, FY1999 Federal Fleet Report, Table 17, www.policyworks.gov/vehicles.

24 General Services Administration, FY1999 Federal Fleet Report, Table 18, www.policyworks.gov/vehicles.

25 Computed from U.S. Department of Energy, Oak Ridge National Laboratory, Transportation Energy Data Book, Edition 19, September 1999, Table 9-2.

26 The midsize AFV sedan listed by the General Services Administration is $14,516, excluding GSA fees, for model year 2002. http://www.fss.gsa.gov/vehicles/buying/PDF/2002afvs.pdf

Addendum

1 For a full documentation of the macroeconomic linkage refer to “Model Documentation Report: Macroeconomic Activity Module (MAM) of the National Energy Modeling System,” January 2002 found on the EIA web site at http://tonto.eia.doe.gov/FTPROOT/modeldoc/m065(2002).pdf

2 Implicit in this is the economic calculus that consumers and businesses go through in deciding whether to purchase or not.

3 Example of such models are the Framework for Economic Impact Analysis and Industry Growth Assessment (AMIGA System) and A Model for Evaluating the Regional and Global Effects of GHG Reduction Policies (MERGE).