Energy Bill Signed Into Law

Last week, the House passed and President George W. Bush signed energy legislation raising vehicle fuel efficiency standards to 35 mpg by 2020 and expanding biofuels production to 9 billion gal by next year, increasing to 36 billion gal by 2022. At least 21 billion gal must be "advanced biofuels," such as cellulosic ethanol. Currently, U.S. refineries produce 6 billion gal of ethanol annually, but no commercial refineries use cellulosic feedstocks. The bill had been long debated and nearly died in the Senate in early December due to Republican Party opposition and a Bush veto threat. Only when Senate Democrats eliminated provisions requiring that 15% of electricity come from renewable sources and struck a provision shifting $13 billion in tax breaks from oil companies to renewable energy producers did Bush drop his veto threat and Republicans vote for the bill. Other sections will phase out inefficient light bulbs, toughen appliance efficiency standards, and expand carbon sequestration demonstration projects. While the 800-page bill breaks new ground—the last time vehicle fuel standards were raised was 1975—congressional staff expect new energy bills next year that will contain renewable energy requirements as well as global warming provisions.