Congress passes 35 mpg CAFE standard

[AZEqualizer]

WASHINGTON - Congress by a wide margin approved the first increase in automobile fuel economy in 32 years Tuesday,the energy bill that requires 35 mpg by 2020 CAFE and President Bush plans to quickly sign the legislation, accepting the mandates on the auto industry. The bill is HR 6


After passing in the Senate last week (http://www.autobloggreen.com/2007/12/13/breaking-35-mpg-it-is-senate-passes-energy-bill-back-to-the-h/), the first increase in average fleet fuel economy in 32 years sailed through the House of Representatives 314-100. The auto industry's best friend in Congress, Rep. John Dingell, D-Mich., "was key to a compromise on vehicle efficiency increases," as the AP put it. As we mentioned (http://www.autobloggreen.com/2007/12/13/breaking-35-mpg-it-is-senate-passes-energy-bill-back-to-the-h/), part of that compromise meant stripping out tax provisions for renewable energy requirements and the elimination of new incentives for plug-in hybrid vehicles. Oil companies were also spared higher taxes. President Bush has said he will sign the bill.

The new CAFE standard is part of a broad energy bill and includes a massive boost to ethanol producers
ARTICLE BY AUTOBLOGGREEN (http://www.autobloggreen.com/2007/12/18/its-official-congress-passes-35-mpg-cafe-standard/)


In a dramatic shift to spur increased demand for nonfossil fuels, the bill also requires a six-fold increase in ethanol use to 36 billion gallons a year by 2022, a boon to farmers. And it requires new energy efficiency standards for an array of appliances, lighting and commercial and government buildings.
By H. JOSEF
HEBERT, Associated Press Writer (http://news.yahoo.com/s/ap/20071218/ap_on_go_co/congress_energy;_ylt=ApLUXmuY.06H23c0Tcqnt7Ss0NUE)

http://www.blogsmithmedia.com/www.autoblog.com/media/2007/12/justabillparty_opt.jpg

[jmeineck]

It sounds like their pulling the plug on PHEV and pushing ethanol? Or did I miss something?

[AZEqualizer]

This morning, 12/19/2007, President Bush put pen to paper (no doubt one of those really cool American President pens) and signed into law the Energy Independence and Security Act of 2007, all 822 pages of it. As we all know by now, the pillar of the law is an increase in Corporate Average Fuel Economy standards to 35 mpg by 2020. The increases will be built up over time beginning with the 2011 model year, which really isn't that far away. The measures regarding CAFE also don't apply fleetwide as one single standard, but will be adjusted based on the type of car or truck being measured. Nevertheless, after decades of nary a budge in this country's CAFE standards, an increase of some 40% is monumental and will likely begin immediately affecting the cars and trucks we buy.
[Source: The Detroit News]

[Billy]

I have a friend here in town, and he's been bragging about the fuel economy on his truck. It's a 2003 Dodge Cummins Automatic, 4x4, single wheel 1 ton, crew cab, and the counter was still going up! 36mpg+ for a 6000lb truck! The secret is, he bought a "Quadzilla" chip for it, to my knowledge it just "fools" the MAP sensor. (Manifold absolute pressure sensor) What the sensor does it tells the computer how much vacuum ir boost pressure there is in the intake manifold. In this case though, I've hooked up my scanner, and it's showing a MAP sesnor signal too high.. Well no kiddin'. I'd love to have a truck that gets better fuel economy than my car!! =D

[AZEqualizer]

CNET Article (http://www.news.com/FAQ-New-Energy-Act-gets-green-light/2100-13836-6223567.html?part=dht&tag=nl.e433):


What got cut?
The Senate stripped out an extension to an investment tax credit for renewable power generation from solar, wind, and biomass. Also taken out was a renewable portfolio standard that would have mandated that utilities get 15 percent of their power from renewable sources.
Representatives from the solar and wind industries said losing the investment tax credit will delay growth of the renewable energy industry (http://www.news.com/8301-11128_3-9833473-54.html). When Congress resumes next year, expect lobbyists to push for an extension to the tax investment incentives, which are set to conclude at the end of 2008.
The oil industry opposed the renewable energy provisions. That's because they would have been paid for by taking away existing tax incentives for oil companies, according to John Felmy, the chief economist for the American Petroleum Institute. If the tax package had gone through, consumers would have paid higher prices for transportation fuels, he argued.




Now that this law is in place, will the U.S. remain "addicted to oil?"
Yes. The biofuels incentives are meant to reduce dependence on oil and increase energy security through domestic production. But even with the higher mandates, petroleum is not going away.
Even if the U.S. converted 100 percent of farmland to making cellulosic ethanol, it would produce 100 billion gallons a year, while the U.S. consumes 140 billion gallons per year for gasoline alone, according to Felmy from the American Petroleum Institute. "When I hear XYX politician say we're going to grow our way out of imports, they just don't know the facts. It's like a mantra," he said.
But the picture isn't all bad when it comes to biofuels and the environment. The legislation introduces a method of measuring greenhouse gas emissions over the lifecycle of production, according to said Nathanael Greene, senior policy analyst at the National Resources Defense Council.
"While additional safeguards are needed for biofuels (and all agriculture) to protect and preserve soil and water quality, the language in this bill takes a big step towards recognizing the broad range of impacts that biofuels (http://flytheroadclub.com/Cellulosic-ethanol-A-fuel-for-the-future/2100-11392_3-6202328.html?tag=st.nl) can have if done carelessly," Greene wrote in his blog on Monday.
Reuters contributed to this report.

[jmeineck]

AZE,

Thanks for the follow up. Cutting the incentive for PHEV's won't change my mind about buying the V1 or some form of PHEV, but it would have been nice to get a tax credit:-)