Federal energy bill passes U.S. Senate
Final vote 65-27, with mixed results

FUEL ECONOMY STANDARD
The 2007 federal energy bill increases the auto fuel economy standard to 35 miles per gallon for cars, SUVs, and pickup trucks by 2020. The current fleet standard is 25 miles per gallon for all cars and light trucks.

Interestingly, the auto industry lobbied hard against this measure while recently agreeing to push fuel economy to 40 miles per gallon in Europe. Japan has a 46 miles per gallon standard, and China recently increased its standard to 37 miles per gallon. By 2020, the U.S. fleet standard will still be below that of a significant portion of the global market, making it difficult for domestically manufactured vehicles to compete internationally.

BIOFUELS
The legislation will increase biofuel production to 36 billion gallons by 2022 and requires 60 percent to come from cellulosic materials such as prairie grass and wood chips. Fuel made from the right types of cellulosic materials is more efficient and less detrimental to the environment than corn.

OTHER MEASURES
The law will set new appliance and lighting efficiency standards and provides grants, loan guarantees, and other assistance to promote research into fuel-efficient vehicles, including hybrids, and advanced diesel and battery technologies.

Important legislation that failed:

• A national Renewable Electricity Standard (RES), a measure that would require utilities to increase the amount of renewable energy they use to 15 percent to 2022. The RES had the support of the majority of the Senate but was stopped by a small opposition.
• A measure that would provide $32 billion dollars for efficiency, renewable fuels, and clean energy programs.

The bill will now go to conference committee then return to the House and Senate floors for a final vote.

State would benefit from a national RES
Union of Concerned Scientists report describes the economic and environmental benefits for Minnesota

The Union of Concerned Scientists released, "Cashing In on Clean Energy," national and state analyses of the long-term benefits of a national 20 percent by 2020 Renewable Electricity Standard (RES). Benefits for Minnesota include the following:

CONSUMER SAVINGS
By reducing electric and natural gas costs across all sectors of the economy, consumers would save $120 million by 2020 and $260 million by 2030.

ECONOMIC DEVELOPMENT
The RES would produce $1.8 billion in new capital investment, bring $332 million in income to farmers and rural landowners, and generate $64 million in local taxes.

JOB CREATION
We could expect 3,100 new jobs from renewable energy development.

REDUCTION IN GLOBAL WARMING POLLUTION
The RES would reduce global warming emissions equal to taking over 36 million cars off the road.

ACCEE releases state scorecard on energy efficiency measures
Minnesota ranks ninth in the nation

In July, the American Council for an Energy-Efficient Economy (ACEEE) released a ranking of state-level energy efficiency policies. The State Energy Efficiency Scorecard for 2006 graded all 50 states and the District of Columbia on energy efficiency policies, programs, and technologies.

Minnesota tied with Rhode Island for ninth behind Vermont, Connecticut, California, Massachusetts, Oregon, Washington, New York, and New Jersey.

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