In a flurry of activity Thursday, the U.S. Senate passed a new version of an energy bill that will raise fuel efficiency standards for cars and light trucks and give a big boost to renewable fuels. The bill easily passed the Senate on a vote of 86-8.
But the energy bill that passed was merely a shadow of its former self, as a 15 percent renewable electricity standard and provisions for new taxes on oil companies were stripped out.
Ethanol and biodiesel producers will have plenty to celebrate, as the bill calls for the use of 36 billion gallons of renewable fuels by 2022, a significant increase from the approximately 5 billion gallons of ethanol last year. Under the bill, 21 billion gallons of biofuels will be required to come from sources other than corn-based ethanol by 2022.
The bill will raise fuel efficiency standards for cars and light trucks for the first time since the 1970s. Fleet-wide fuel economy will be raised to 35 miles per gallon, up from today's level of 25 mpg.
President Bush, who had threatened to veto the bill last week, is signaling that he will sign the bill now that the tax increases and renewable electricity standard have been removed.