Energy bill boosting CAFE standards approved

摘要

In December, Congress approved and President Bush signed an energy bill that will increase motor vehicle fuel-economy standards and boost ethanol production. However, more ambitious energy proposals, supported mostly by Democrats, were defeated. The law requires an increase in Corporate Average Fuel Economy (CAFE) standards from 25 to 35 miles per gallon by 2020. It was the first increase in CAFE standards for passenger cars since 1990. To assist the auto industry in meeting the new requirement, the bill provides grants and loan guarantees for making efficient vehicles and their parts.A House-passed provision that would have required investor-owned electric utilities to produce 15% of their energy from renewable sources was dropped from the bill. In addition, the Senate eliminated a proposal that would have allotted $21.8 bil- lion in tax incentives for renewable energy and energy efficiency. This provision, approved by the House, was particularly contentious because the bulk of the funds required to finance the incentives would have come from scaling back tax incentives for oil and natural gas producers. The White House had made it clear that it would veto the bill if the provision was not shelved. Democratic leaders vowed to try again next year to enact these provisions, because many of the tax incentives are set to expire in 2008.