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Key Provisions of Energy Bill Passed by US House

Reuters
Tuesday, 18 Dec 2007 | 2:10 PM ET

The U.S. House of Representatives Tuesday passed a broad energy bill that will boost automobile fuel efficiency standards and require more use of renewable fuels like ethanol.

Following is a summary of some key items of the Energy Independence and Security Act, already passed by the Senate, which President George W. Bush is expected to sign into law this week:

Vehicle Fuel Economy:

  • Increases Corporate Average Fuel Economy, or CAFE, standards to 35 miles per gallon (15 km per liter) by 2020 -- the first congressional increase in 32 years.
  • Sets separate standards for cars and light trucks.
  • Beginning in 2011 model year, National Highway Traffic Safety Administration annually increases nationwide CAFE standard. For 2021-2030 model years, car and light truck standards rise at a "maximum feasible rate" set by NHTSA.
  • Automakers can trade fuel economy credits earned between the passenger car and light truck fleets when they exceed goals, and borrow against future gains for up to 3 years.
  • Could lower U.S. crude oil usage by 2 million barrels per day -- or 8 percent -- by 2030, according to government estimates.
  • Increased vehicle fuel efficiency will save American families $700 to $1,000 a year at the pump.

Renewable Fuel Mandate:

  • Expands mandate for U.S.-grown biofuels, such as ethanol, to 36 billion gallons in 2022, versus current levels near 6.5 billion gallons. Near-term usage requirement goes to 9 billion gallons in 2008 and 15.2 billion gallons in 2011.
  • Caps ethanol supply from corn at 15 billion gallons; the rest must come from non-food "cellulosic" sources, such as switchgrass and wood chips.
  • Bans companies from restricting installation of ethanol pumps as part of franchise agreements.

Efficiency and Research:

  • Increases the efficiency of buildings, homes, appliances, and lighting, reducing heat-trapping carbon dioxide emissions 75 percent.
  • Building, appliance, and lighting efficiency will save consumers $400 billion through 2030.
  • Phases out use of incandescent lightbulbs, cutting energy use from light bulbs by 60 percent by 2020.
  • Requires dishwashers to cut water usage by 28 percent and clothes washers by 40 percent.
  • Sets new incentives for developing energy from wind, solar, geothermal and other renewable sources.
  • Funds new research into capturing carbon emissions from coal plants and sequestering them in underground reservoirs.

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