Ethanol Market
For Immediate Release
December 18, 2007
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info@ethanolmarket.com
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Energy Bill sent to the President's desk

Last week the United States Senate passed the energy with a vote of 86-8, and today the House easily cleared the bill with a 314-100 vote.  By this time Wednesday, the bill in all likelihood will be signed into law by President Bush. Last week, the White House stated “The Senate energy plan will update CAFE standards and enhance the use of renewable fuels. By addressing the concerns of the Administration and moving forward with a bipartisan approach, senators have taken steps to improve our economic and energy security. If this legislation makes it to the president's desk, he will sign it into law.”

Two key components of the legislation are the increase in fuel efficiency for cars and trucks by 40 percent, to an average 35 miles per gallon by 2020.  Currently, passenger cars now must attain 27.5 miles a gallon and minivans, SUVs and other light trucks 22.2 miles a gallon.  The increase in mileage standards is expected to reduce Untied States crude oil demand by 2.0 million barrels per day by 2030, which is an 8% reduction of the 25 million barrels a day in oil consumption the Energy Department has forecasted for that time. The mileage standards increase is the first such legislation in 32 years.

The legislation also calls for a new higher Renewable Fuels Standard (RFS), which increases the use of renewable fuels ethanol every year, up to 15 billion gallons of ethanol to be consumed annually by 2015  and 36 billion gallons of renewable fuels be consumed annually by 2022, primarily comprised of cellulosic ethanol.  The current RFS from the 2005 Energy Security Act mandates increasing renewable fuels use up to 7.5 billion gallons by 2012

The new RFS calls for 9 billion gallons of renewable fuels use next year in 2008.  Thereafter, the amount progressively increases up to a 36 billion gallons by 2022. Furthermore, the legislation requires 21 billion gallons of advanced biofuels use by 2022, 16 billion of which must be cellulosic ethanol.

For the full written copy of the bill text, click here

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