US House passes Energy Bill 314-100, President to sign today; historic 36 billion gallon ethanol mandate is centerpiece

In Washington, the US House of Representatives passed the Energy Bill by a vote of 314-100. President Bush is expected to sign the bill this morning.

The Bill establishes a Renewable Fuel Standard that 36 billion gallons of ethanol must be blended with conventional gasoline by 2022. 15 billion gallons must come from corn ethanol and 22 billion gallons from second-generation biofuels.

In addition to the revising the Renewable Fuel Standard, the Bill raises the average fuel economy of carmakers’ fleets to 35 miles per gallon.

The Bill also mandates more energy-efficient lighting and appliances, which will lead to the phasing out of conventional incandescent light bulbs beginning with the 100-watt bulb in 2012.

“I would call this bill a surprise,” said John Fox of Homeland Energy. “Even though the bill was stripped of the tax credit extensions available to biofuels, the codification of mandates in an entirely different manner than originally proposed by President Bush will benefit the industry as a whole. It was widely expected that mandates would come (when not if), and I expect that this is just the start. The mandates, by and large, are reasonable and attainable (particularly for biodiesel).”

“The 2007 federal energy bill represents a critical first step toward reducing U.S. dependence on foreign oil,” said Andrew Schuyler of the Northeast Biofuels Collaborative. “New fuel efficiency standards ensure that U.S. cars and trucks will burn less fuel – saving consumers billions of dollars every year — and the Renewable Fuel Standard (RFS) requires that different kinds of fuels be utilized as vehicles become more efficient,” he added.

“The RFS sends a clear signal that Congress understands that diversified fuel markets will lead to U.S. economic development, more stable gas prices, greater energy security and reduced global warming emissions. While the final energy package does not address tax reform for petroleum companies, which continue to skew energy markets in their favor, this bill is a major step in the right direction,” Schuyler said.

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