1 / 24

Biofuels policies

Biofuels policies. Energy Tax Act of 1978. “Gas Guzzler Tax” - to discourage the production and purchase of inefficient vehicles. However, applies only to vehicles under 6,000 lbs , exempting SUVs. Source: http://www.fueleconomy.gov/feg/info.shtml#guzzler.

fai
Download Presentation

Biofuels policies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Biofuels policies

  2. Energy Tax Act of 1978 “Gas Guzzler Tax” - to discourage the production and purchase of inefficient vehicles. However, applies only to vehicles under 6,000 lbs, exempting SUVs. Source: http://www.fueleconomy.gov/feg/info.shtml#guzzler

  3. Alternative Motor Fuels Act of 1988 • Encourages the production of alternative fuel vehicles • offers production incentives for the manufacture of AFVs which effectively reduce the stringency of vehicle efficiency regulations. • Formula: • Assumes that AFVs operate on alternative fuels 50% of the time, when, in reality, they are fueled with regular gasoline 99% of the time. • For calculating the fuel economy ratings for CAFE, the government only counts the 15% of E85 that is gasoline

  4. Alternative Motor Fuels Act of 1988 • The artificially high fuel economy rating for FFVs is averaged with the rest of the manufacturer’s fleet and raises the fleet’s average fuel economy by as much as 1.2 mpg, thereby allowing the manufacturer to avoid costly fines for exceeding their CAFE requirement.

  5. Ethanol Import Tariff of 1980 • $0.54 per gallon import fee on foreign produced ethanol • ??

  6. Energy Policy Act of 2005 • Renewable Fuels Standard (RFS) • Requires that gasoline contain an increasing amount of Renewable fuel, specifically biodiesel and ethanol • Beyond 2012 the minimum volume of renewable fuel in gasoline will grow in proportion with gasoline • Cellulosic: through 2012, one gallon cellulosic or waste-derived ethanol counts for 2.5 gallons of the RFS

  7. Energy Policy Act of 2005 • Volumetric Ethanol Excise Tax Credit – tax credit of $0.51/gallon blended – extended through 2008 • Infrastructure tax credit: 30% of the cost of installing clean vehicle refueling equipment < $30,000 • “Small ethanol producer”: plants with capacity < 60 mmgy eligible for incentive of $0.10/gallon on first 15 million gallons • Cellulosic: • incentives for cellulosic prodution to reach one billion gallons by 2015 • authorizes loan guarantees and grants for facilities converting cellulosic materials and municipal solid waste to ethanol • Federal purchasing requirement • Tax credit for FFV purchase • Funding for research programs

  8. S2817 Biofuels Security Act of 2006 • Harkin, Lugar, Johnson, Dorgan, Biden + 1 cosponsor (05/2006) • Amendment of the manufacturing incentive for dual fueled vehicles that is intended to close, or at least narrow, the “dual fuel loophole” • Harkin’s changes would effectively assume that the fuel mix ratio of FFVs is more like 70/30, gasoline/E85, at first, tightening to 90/10 after 3 yrs. • Would allow automakers to continue to claim CAFE credits for the production of FFVs, but rather than inflating FFV’s fuel economy ratings by 65%, it would only bump them up by 9%, narrowing the loophole that has been allowing auto manufacturers to avoid meeting CAFE restrictions. • Harkin has another Senate bill (S1994) with the same amendment. Rep. Markey has proposed this amendment in the House as well in HR4673 • FFV production mandate: 100% by 2016

  9. S1994 Fuel Security and Consumer Choice Act • Harkin, Lugar, Obama + 1 cosponsor (11/2005) • Same amendment of the manufacturing incentive for dual fueled vehicles that is intended to close, or at least narrow, the “dual fuel loophole” • FFV production mandate: 100% in 10 years

  10. HR4409/S2025 Vehicle and Fuel Choices for American Security Act • Bayh + 27 cosponsors + NRDC + Set America Free Coalition (11/2005) • proposes an amendment to Internal Revenue Code to allow a manufacturing tax credit for advanced technology motor vehicles.

  11. S2446 American Fuels Act of 2006 • Obama, Lugar + 1 cosponsor (03/2006) • Would provide a tax credit of $100 per vehicle for the production of FFVs that are NOT counted toward the manufacturer meeting its CAFE requirements

  12. S2816 Biofuels Security Tax Act of 2006 • Harkin, Lugar, Johnson, Dorgan, Biden (05/2006) • Amend tax credit for FFVs by adding that qualified vehicles must be certified by the manufacturer as having a fuel economy rating when running on E85 that is “substantially the same or better than a fuel economy rating when running on gasoline only”

  13. FFV production incentives: • Biofuels Security Act of 2006 – narrow the “dual-fuel loophole” • Fuel Security and Consumer Choice Act – ditto • HR4673 – ditto • Vehicle and Fuel Choices for American Security Act – manufacturing tax credit for advanced technology motor vehicles • American Fuels Act of 2006 – tax credit of $100/vehicle for FFVs NOT counted toward CAFE requirements

  14. FFV mandate proposals: • Biofuels Security Act of 2006 – 100% by 2016. • Fuel Security and Consumer Choice Act – 100% in 10 years • Two Senate bills, S2263 and S587 – 100% following the year of the enactment of the bill • HR4673 – 100% in 10 years

  15. Infrastructure Stimulation • Biofuels Security Act of 2006 – require major oil companies to operate an E85 pump at 5% of their stations (in 2007), increasing to 50% by 2016. • Biofuels Security Tax Act of 2006 – extend the alternative fuel refueling property credit and increase the credit rate to 50%. • Vehicle and Fuel Choices for American Security Act – increase the alternative fuel vehicle refueling property credit to 50% • American Fuels Act of 2006 – tax credit for the sale of E85 • S2614 – reimbursement program for the installation of E85 refueling infrastructure • HR5317 and HR 3059 – increase the incentives for E85 refueling property installation

  16. Fuel Standard • State-level action • Biofuels Security Act of 2006 – proposes to increase and extend the RFS • Vehicle and Fuel Choices for American Security Act – proposes to amend the mandate for cellulosic in current legislation (sooner) • 25X’25 – House and Senate resolutions expressing the goal of providing at least 25% of the total energy consumed by renewable resources by 2025 • American Fuels Act of 2006 – RFS for biodiesel

  17. Vehicle taxes - consumer • Vehicle and Fuel Choices for American Security Act – terminate the limitation on the number of “qualified hybrid and advanced lean burn technology vehicles” that qualify for the alternative motor vehicle tax credit • HR5703 – tax credit/deduction for purchase of FFV

  18. Gov’t preferential purchasing • Biofuels Security Act of 2006 – increase the minimum federal fleet requirement: ALL new vehicle purchases must be FFV • Vehicle and Fuel Choices for American Security Act – all federal agencies will reduce fleet petroleum consumption 30% by 2016 • HR 5592 – require fed. agencies to purchase E10 when available • HR 5338 – prohibit the use of Members’ Allowance to purchase any non-FFV

  19. RD&D funding • Vehicle and Fuel Choices for American Security Act – increases the appropriation to bioenergy research and development, approved in the Energy Policy Act of 2005 • Two House bills would provide increased Federal funding for energy RD&D

  20. Fuel tax incentives • American Fuels Act of 2006 – would extend the alcohol fuel mixture excise tax credit to cellulosic ethanol

  21. Incentives for Investment in Production • S610 – provide a small agri-biodiesel producer credit and to increase the small ethanol producer credit • S606 – eliminate MBTE from US fuel supply

  22. Education • Vehicle and Fuel Choices for American Security Act – directs the Secretary of Energy to undertake a national media campaign to decrease oil consumption over the next decade

  23. Blending mandate • Two House bills propose to require all gasoline to contain 10% renewable fuel by 2012/2010

  24. Trade policy • Confusion and debate • There are several bills in the Senate that propose to suspend temporarily the duty on ethanol • One House bill proposes to extend the tariff duties on ethanol • One House bill proposes to remove the permanent tariff and the temporary duty on ethanol • One House bill proposes to suspend temporarily the duty on ethanol

More Related