What's Included In Energy Bill?

NPR.org, June 14, 2007 · The controversial energy bill now on the Senate floor takes a different approach than the bill pushed through by a Republican Senate in 2005. That measure sought to increase domestic oil production through subsidies and other incentives. With Democrats now in charge, the new bill focuses on decreasing consumption of oil and gasoline. Here's a look at the bill's major provisions:

Fuel Economy: The bill would, for the first time in decades, raise average fuel-economy standards for cars and SUVs or light trucks (up to 10,000 pounds) — from 25 mpg to 35 mpg by 2020 (a roughly 40 percent increase). This provision is the most controversial, especially with the auto industry, which argues that it could push up the production costs of each vehicle by thousands of dollars. That has led some Democrats to propose federal financial relief for automakers.

Renewable Fuels: The bill mandates the use of 15 billion gallons of biofuels annually by 2015 and 36 billion gallons by 2022 (up from 8.5 billion gallons in 2008). In the beginning, most of the biofuel would be corn ethanol. Beginning in 2016, the bill mandates annual increases of 3 billion gallons in the use of advanced biofuels – such as "cellulosic" ethanol, which can be made from switch grass, wood chips or agricultural waste. Oil refineries and food manufacturers – who warn that diverting corn to ethanol production could hike up food costs — oppose this provision.

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