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HOUSE ENERGY POLICY DRAFT DISCUSSION
(June 6, 2007) - This month, Democrats in the House developed a proposal that addresses alternative fuels and vehicles. It attempts to move toward a system for regulating carbon from the transportation sector.
- Fuel Economy - The proposal raises fuel economy stanards to the maximum feasible amount, or at least 36 mpg for cars by 2021and 30 mpg for light trucks by 2024. It would also allow for "attribute based" standards that set different targets for different sized vehicles, and would provide an "anti-backsliding" provision that requires that a minimun amount of small vehicles be manufactured in the U.S. Additionally, the proposal attempts to regulate carbon from the automobiles by requiring automakers and the EPA to determine and report on life-time carbon emissions of new vehicles. It also requies a minimum number of vehicles to be capable of running on alternative fuels.
- Manufacturer Incentives - The proposal includes some limited incentives for domestic production of advanced vehicle technologies. It includes loans for advanced battery research, development and production, as well as grants for converting production facilities to produce advanced vehicle technologies.
- Renewable Fuels - On the fuels side, the draft would set an "Alternative Fuels Standard" that requires at least 35 billion gallons to be used by 2025. It would also set a "Low Carbon Fuel Standard" that would require fuel distributors and retailers to sell an increasing amount of fuels that have a low carbon content, such as fuels from cellulosic materials. The proposal would also provide grants for retailers to install alternative fuel pumps, and would require the installation of pumps once market penetration of flex-fuel vehicles reaches a certain level.
A hearing on the proposal will take place on June 7. More information, including testimony from the hearing, is available on the Energy and Commerce Committee website.
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