Senate passes energy bill

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Posted June 22, 2007, at 10:42 a.m. CDT

By a 65-27 margin late Thursday, the U.S. Senate passed an energy bill that would mandate the use of 36 billion gallons of alternative fuels and the increase of fuel economy standards to 35 miles per gallon by 2020. Missing from the bill is $32.1 billion in tax incentives after a 57-36 vote removed that provision form the bill.

The bill's alternative fuels mandate comes through raising the renewable fuels standard (RFS) from 7.5 billion gallons by 2012 to 36 billion gallons by 2022. The RFS also contains language that would include mandates for "advanced biofuel," putting in place a mandate of 3 billion gallons by 2016 and 21 billion gallons by 2022. Although not defined, cellulosic ethanol is likely the source of some of the advanced biofuel.

The bill also gives the president the power to declare energy emergencies to trigger anti-price gouging measures. The energy emergencies could include the aftermath of a natural disaster or gasoline shortages.

Finally, the bill would raise the corporate average fuel economy (CAFE) standards to 35 miles per gallon as an average of all passenger cars and light trucks produced by 2020. Although originally considered in the bill, a 4 percent yearly increase of CAFE standards in the years 2021 through 2030 was dropped Thursday.

The U.S. House of Representatives is working on its version of the energy bill and is expected to bring the resolution to the floor for debate within the next two weeks. If that bill passes, a conference committee would meet to iron out differences between the House and Senate versions of the bill.

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