Energy Bill Passes Through the House Once Again

The Energy Bill, stripped of the renewable energy source requirements by the Senate, has passed through the House (by a vote of 314-100) and will likely be signed into law on Wednesday by President Bush. The Bill contains a new standard for the corporate average fuel economy (CAFE), which will raise the average standard to 35 mpg by 2020.

According to Rep Nancy Pelosi (D-Cal) ""This is a choice between yesterday and tomorrow" on energy policy.

The current Corporate Average Fuel Economy (CAFE) standard is around 27.5 miles per gallon for cars and just over 22 miles per gallon for light trucks.

Starting in 2011, CAFE will begin its move upwards. Rep. Joe Barton (R-Tex) is already predicting Congress will need to grant a time extension. Barton pointed out, of the 350 models available today, only eight vehicles get better than 35 mpg.

The bill also mandates a huge increase in production of alternative fuels. Up to 36 billion gallons of renewable fuels in 2022 are being required, a fivefold increase from today. The bill does allow a waiver if the requirements cannot be met.

"We have every confidence that we can meet the target," said Matt Hartwig, a spokesman for the Renewable Fuels Association, which represents ethanol producers.

New standards are also being set for appliances and light bulbs. It's estimated the traditional light bulb will be forced out between 2012 and 2014.