The 2008 Energy Bill is currently being discussed could determine our country’s energy and vehicle efficiency for years, if not decades to come. Comparing the list below to the 2005 bill shows how much the U.S. political worldview has changed on the subject. Back in 2005, the Republican Senate sought to increase domestic oil production through subsidies and other incentives. This year, the Democratic Senate list reads like the world post-Inconvenient Truth. Hooray to Al Gore for making the climate change debate, and hence energy efficiency necessary.
Here are the key items
1. Increase in fuel economy
For cars, SUVs, light trucks (up to 10,000 pounds) the CAFE mileage requirement will increase from 25 to 35mpg by 2020, the first overhaul in thirty years. To you and me, this means a 40 percent decrease in money spent for fuel. With skyrocketing gas prices, we could really use this. This portion has been agreed on by Congress on December 1st, after a six month fight between the industry and environmental groups.
2. Renewable portfolio standard
Federal agencies must get 15 percent of their electricity from renewable sources by 2015, and reduce oil consumption by 20 percent. Renewables include solar, geothermal, wind, waves, but not nuclear and clean coal. The energy bill will also include a massive biofuels mandate, requiring motor fuel refineries to use increasing amounts of corn-based ethanol and, starting in 2013, increasing amounts of advanced biofuels using other feedstocks.
3. Provisions against price gouging by energy supplier
Gives authorities more power to investigate possible oil market manipulations, and make price gouging a crime when temporary “national energy emergency.”
Although it all sounds pretty good at first glance, some of these so-called efficiency measures are not necessarily eco-friendly. Take the mandate for corn ethanol biofuels.
In addition, hybrids today can already reach 50-plus mpg, so why are automakers fighting the 35mpg standard that is required by 2020? The car industry suggests that the rules pose a significant technical and economic challenge to the industry. But there are quite a few models out there that already provide more than 35mpg. Electric-gasoline hybrids (e.g. Toyota Prius), flex-fuel vehicles, and hydrogen cars that are either available early 2008 (e.g. Honda FCX Clarity) or already in market test (e.g. GM Chevy Equinox)? History has shown that when an industry regulation is proposed to address societal issues, the industry always put up a fight against the legislation.
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