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Automakers win an extension of the flexible fuel credit ..E85

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http://www.detnews.com/apps/pbcs.dll/article?AID=/20071206/UPDATE/712060476

 

U.S. House passes energy bill

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- The U.S. House approved a bill to increase fuel efficiency standards by 40 percent by 2020 to a fleet-wide average of 35 miles per gallon -- in what would be the first increase in passenger car requirements in more than two decades.

 

The House voted 235-181 to approve the energy bill that raises $21 billion in new taxes, including rescinding $13 billion in oil industry tax breaks, requires 36 billion gallons of biofuels by 2022 and forces utilities to produce 15 percent of electricity from renewable sources.

 

.................................

 

The compromise, which softened a bill the Senate approved in June, was backed by every major automaker and both House Democratic and Republican leaders. Automakers won an extension of the flexible fuel credit for building vehicles that run on E85 ethanol,

 

 

 

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Guest colchiro

 

    ...including rescinding $13 billion in oil industry tax breaks....

 

 

What took them so long?

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There are two contentious issues in the bill, the tax increases on the oil companies are an obvious stumbling block, but the other is that the mandate for public utilitites to generate 15% of their energy with renewable energy is probably a deal breaker in that some states will not be able to meet that requirement because local conditions are no favorable for local production of renewable energy. If I recall correctly, nuclear and hyrdo power are not allowed to be used to fill that requirement in states where other options are not achievable.

 

The bill is either a throw away, ( everyone in the House supports is because they know it will never pass as written), or it is a first bargaining postion, that will be balanced by a different version in the Senate that will lead to compromise on some of the measures.

 

Time will tell. I am surprised the automakers supported the mandated jump in fuel milage which is what makes me think it might be an election year throw away bill.

 

Larry

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Guest colchiro

What took them so long, I heard the President will veto it.  Sure hope that will not happen.

 

Damn Texas Oil Presidents.

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Here is a summary of the provisions from NEVC -- I thought this might be worth a read for many of us.

 

Member Memo To: NEVC Board and Members From: Phil Lampert, Executive Director

 

 

Date: 12/06/2007

 

Re: Update to Energy Legislation NEVC Board and Members:

 

Following is a link to the Energy Bill being considered today (this morning), on the floor of the U.S. House. www.e85fuel.com/whatsnew/Energy_Bill_12-6-07.pdf

 

The bill is 1,061 pages long and was only put into final form last evening. Obviously, we have not had an opportunity to do a close review, but on the surface it includes several provisions related to ethanol and E85, including:

 

1. Establishes 10 corridors to advance alternative fuels.

 

2. Requires an alternative fuel marketing plan for any station which receives federal funds.

 

3. Requires the DOE to contract with "organizations with experience"; to assist new fueling stations offering alternative fuels.

 

4. Requires federal fleets to install AFV fueling locations.

 

5. Establishes a 36 billion gallon RFS by 2022.

 

6. Establishes a 16 billion cellulosic biofuels requirement by 2022.

 

7. Prohibits a franchiser from restricting the installation of alternative fuel infrastructure.

      a. Includes an allowance so alternative fuels can be priced on marquee signs.

 

8. Increases CAFE standards.

 

9. Extends CAFE credits.

 

10. Requires a study regarding the potential mandatory installation of alternative fueling sites.

 

11. Establishes an Ethanol Pipeline feasibility study.

 

12. Reduces ethanol tax credit from $0.51 per gallon to $0.46 per gallon after 7.5 billion gallons have been produced.

 

From an initial review, it does not appear to include a new incentive to reduce the price of E85, nor does it appear there is an increased federal income tax credit to assist in establishing alternative fuel infrastructure.

 

If the House passes the legislation today, and it would appear they have the votes to do so, it will be sent to the Senate this afternoon/evening. Majority Leader Reid could invoke cloture as early as Saturday, which would limit debate and could force a final Senate vote as early as Dec. 13. This morning, the Administration issued a Statement of Administration Policy which indicates that if the energy package is approved as is, staff would recommend the President veto.

 

A link to the Statement of Administration policy regarding the energy package can be reviewed at: www.e85fuel.com/whatsnew/SAP_HR6_12-6-07.pdf

 

Obviously we'll be closely following the bill. Stand by for more!

 

Phillip Lampert, NEVC Executive Director

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The states that do not have their own power plants would have to build new plants under the bill.  The tax relief for investments moves from alternative energies that are optional to only mandated alternatives.  This would probably kill off a lot of research currently underway on new energy sources.

 

As is usual there is a lot of good stuff in a bill that is spoiled by a few bad items thrown in for particular pols to buy their vote.

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"Establishes a 16 billion cellulosic biofuels requirement by 2022"

 

Attainable and extremely important  IMO...we need to accelerate the cellulosic ethanol for the Industry to gather public suppport and as a way to quiet the growing opposition to row crop ethanol.

 

 

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I think we have to balance row crop with cellulosic.  It may be just me but I choose E85 for several reasons, one of the most important is keeping more money onshore here. 

 

Lets go back a few years.  In 1996 alone we spent $56 billion defending foreign oil overseas.  If we made middle east instability irrelevant the price of oil would drop by at least 30%.  We can do this by a combined mix of fuels to bust up the oil monopoly.  B20 boosts the soy row crops and E10 is boosting the corn row crops. In turn we keep the ag industry healthy and formidable and we keep a solid mix of research moving. 

 

Our weakest link today is getting the E fuels into the tanks of FFVs on the road.  There are about 200,000 FFVs in north Texas as an example.  If there was a sweeping desire to use E85 in the DFW area it would take 198 days to fill them up at our vast number of 9 E85 stations.

 

 

"Establishes a 16 billion cellulosic biofuels requirement by 2022"

 

Attainable and extremely important  IMO...we need to accelerate the cellulosic ethanol for the Industry to gather public suppport and as a way to quiet the growing opposition to row crop ethanol.

 

 

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I agree, I like the idea of not "locking out" any promising line of alternative fuel research. I also like the idea that they are looking at a fuel ethanol pipe line. I hope it is a coast to coast backbone line that will allow the fuel supply to service the local needs of states that do not have ready supply.

 

I think the move to cellulose is on the way and that the proposal to cut the tax credit will help push that along and motivate fuel enthanol producers using grain supply streams to look at closed loop energy systems and alternative process heat systems which can only help.

 

A good fraction of our current oil price is simply due to speculation and risk managment by players in the futures market in my opinion, and at some point biofuels will become robust enough that it will take much of that hedging out of the oil prices.

 

Larry

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