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THE RENEWABLE FUELS, CONSUMER PROTECTION, AND ENERGY EFFICIENCY ACT OF 2007
(June 21, 2007) - The Senate recently passed this comprehensive energy package that addresses energy use and green house gas emissions for different sectors of the economy. A summary of parts of the bill that relate to transporoation and fuel economy standards is provided below. The UAW, U.S. automakers, and Michigan Senators all opposed the bill, while many environmental groups supported it.
- Increases fleetwide average fuel economy for all cars, SUVs, and trucks up to 10,000 lbs in weight to 35 miles per gallon by model year 2020. This is a 10 mpg increase over the current 25 mpg average.
- Uses attribute-based classes (such as size or weight) determined by the Department of Transportation's National Highway and Transportation Safety Administration (NHTSA). Each class of vehicles will be required to meet the new fuel economy standard for that particular class. Each automaker will no longer be required to meet a corporate-wide standard for cars or light-trucks.
- From 2011 to 2019, requires that NHTSA set annual fuel economy standards that are the maximum feasible and ratchet them up to meet the 2020 target of 35 miles per gallon.
- Does not require the current "two-fleet" rule in which automakers are required to meet a minimum standard for their fleet of domestically produced cars. This rule was included in previous fuel economy legislation as a way to ensure that some of the most efficient cars continue to be produced in the U.S.
- Establishes a credit system and trading program for automakers. The program allows a manufacturer that exceeds the standards to sell its credits to another automaker that fails to meet the standards, or save up the credits for up to 5 years.
- Establishes an "off-ramp" for automakers if NHTSA determines that 35mpg is more stringent than the maximum feasible average fuel economy level that the manufacturers can achieve.
- Directs NHTSA to determine a system to evaluate fuel efficiency of commercial trucks. They system must require an improvement in the fuel economy of medium- and heavy-duty trucks over a 20 year period. It also removes work trucks weighing up to 10,000 pounds from the fuel efficiency standards for cars and light trucks.
- Creates a consumer labelling program that includes information on greenhouse gas emissions.
- Requires the federal government to purchase the most fuel efficient cars practicable.
- Uses money raised by fuel economy penalties to fund research into fuel-saving technologies and to expand the availability of alternative fuels. Calls for an advanced battery initiative and standards for biodiesel.
- Requires NHTSA to create safety standards that address the compatibility between the largest and smallest vehicles.
- Requires that NHTSA establish a national tire fuel efficiency consumer information program that includes a rating system for tires.
- Requires that 50% of vehicles sold in the US are alternative fuel vehicles by 2015-including but not limited to flex-fuel vehicles, hybrids, electric vehicles, fuel cells and others.
- Establishes a manufacturing incentive program that provides funding awards for up to 30% of the cost of reequipping, expanding, or establishing a facility that produces an advanced technology vehicle or component.
- Establishes a research, development and demonstration program for energy storage systems for transportation.
- Establishes an Electric Drive Vehicle Demonstration Program to provide grants for demonstration of plug-in electric drive vehicles. Establishes a Near-Term Electric Drive Transportation Deployment Program that provides grants and loans for qualified electric transportation projects.
- Establishes a renewable fuel requirement of 8.5B gallons in 2008, increasing each year to reach 36B gallons by 2022. This is equivalent to 21% of projected 2022 vehicle fuel demand.
- Establishes an advanced biofuels requirement of 3B gallons in 2016, increasing each year to reach 21B gallons by 2022. This is equivalent to 58% of the total renewable fuel requirement, and 12% of total projected fuel use in 2022. Advanced biofuels refers to any fuel made from a renewable resource other than corn.
- Allows credit trading between fuel refiners and distibutors.
- Provides credits to facilities that use renewable energy to displace more than 90% of the fossil fuels normally used in production of renewable fuels.
- Establishes a grant pilot program for 10 projects to establish refueling infrastructure corridors for renewable fuels. Priority will be given to projects that maximize displacement of petroleum consumption, best incorporate existing infrastructure, and maximize the use of advanced biofuels.
- Significantly raises current funding levels for bioenergy research and development. Calls for establishment of at least 11 bioresearch centers that focus on biofuels.
- Provides loan guarantees of up to $250M for projects that produce advanced biofuels.
- Provides grants for research into renewable fuel production technologies, biorefineries, and impacts of woody and other biomass for fuels.
- Requires labeling of fuel caps on flex-fuel vehicles that can run on E85.
- Provides payments to agricultural producers during the first year in which the producer devotes land to the production of a qualified cellulosic crop (i.e. a tree or grass grown specifically for energy).
- Includes a number of environmental safeguards, such as a study of the impacts of increased use of renewable fuels on air and water quality, land use patterns, rate of deforestation (in US and globally), green house gas emissions, and biodiversity, as well as expansion of the clean air act to include water quality impacts of fuels.
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