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ENERGY BILL PROGRESS
Though Congress has been on recess, there has been much going on behind the scenes regarding pending energy legislation. Up through the Thanksgiving holiday, leaders were still working to create a combination of provisions for a final bill that can make it through both chambers. Congress returns on December 3.
Renewable Fuels: The House has made an offer to the Senate that would increase the use of renewable fuels in the transportation sector to 20.5 billion gallons by 2015, but this increase is less than that in the Senate version. Of that volume, 5.5 billion gallons must be advanced biofuels. The House offer would result in a big jump in the current requirement for 2008 to 9.5 billion gallons. The House-passed energy bill (H.R. 3221) did not include a renewable fuels mandate, while the Senate version (H.R. 6) would require the nation's petroleum refiners to blend 36 billion gallons of renewable fuel into the nation's fuel supply by 2022. The House proposal also would require a National Academy of Sciences study on the environmental impact of increased renewable fuels.
CAFE Standards: House and Senate Democrats are close to a compromise on increasing automobile and light truck fuel efficiency. The agreement would retain an increase in the corporate average fuel economy standard to 35 miles per gallon by 2020 passed by the Senate June 21 in energy legislation (H.R. 6), but opponents of the Senate measure are pushing for other provisions sought by automakers. The House passed its energy legislation (H.R. 3221) Aug. 4 without a CAFE increase. The current CAFE standard for cars is 27.5 miles per gallon; for light trucks it is 22.5 miles per gallon. A remaining sticking point on the CAFE provisions is whether to retain a credit toward CAFE compliance in current law that manufacturers receive for making flexible-fuel vehicles that can run on either gasoline or ethanol. The Senate bill would phase out the flex-fuel credit, but House Energy and Commerce Committee Chairman John Dingell (D-MI) is trying to retain it. Additionally, allies of the auto industry are supporting retaining separate standards for cars and light trucks, although they still would be subject to the combined 35-mile-per-gallon standard, the congressional aide said. The industry is also seeking an "off-ramp" that would excuse them from complying with the 35-mile-per-gallon standard if it is technologically unattainable.
LONG TERM SCHIP EXTENSION SOUGHT
A bipartisan group of senators is urging full funding of a long-term extension of the State Children's Health Insurance Program (SCHIP) to ensure states do not lose funding as they would under a simple extension of the program. SCHIP funding expired Sept. 30. Funding has continued under two stopgap funding measures, the latest of which expires Dec. 14. Though supporters of SCHIP reauthorization legislation (H.R. 3963) tried too negotiate with House Republicans to garner enough votes to override an expected veto of the measure by President Bush, the talks have stalled, prompting lawmakers to contemplate passing a long-term temporary SCHIP funding bill that would provide funding well into 2008.
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AUTOS: TRANPORTATION INDUSTRY SHOULD SET CAFÉ STANDARDS
Representatives of Chrysler LLC presented a paper Nov. 15 to the White House Office of Management and Budget urging the Environmental Protection Agency to forego stringent new regulations on automobile fuel efficiency as part of a forthcoming rulemaking to control greenhouse gas emissions from vehicles. The paper outlines the industry’s entire position, and states that EPA either should "abstain from setting its own standards to limit the carbon dioxide emissions from vehicles that are already subject to regulation by [the National Highway Traffic Safety Administration]," or it should "conduct a joint rulemaking with NHTSA, in which it ensures that any standards that EPA sets are no more stringent than those that NHTSA would set under [the Energy Policy and Conservation Act]."
At issue are forthcoming EPA regulations to establish greenhouse gas emissions limits for new vehicles. After the Supreme Court ruled in April that EPA has the authority under the Clean Air Act to regulate greenhouse gas emissions from vehicles, President Bush ordered EPA to finalize a rulemaking by the end of 2008. Part of this rulemaking would regulate tailpipe emissions of carbon dioxide through greater fuel efficiency. Congress set the corporate average fuel economy (CAFE) standard for cars at 27.5 miles per gallon in 1975. NHTSA has never increased the standard. The current CAFE standard for light trucks is 22.5 miles per gallon, rising to about 24 miles per gallon in 2011. The light truck standards were overturned Nov. 15 by a federal appeals court, which said they are not stringent enough.
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EPA SETS RENEWABLE FUELS CONTENT IN GASOLINE
The Environmental Protection Agency has set the 2008 standard for renewable fuel content in gasoline at 4.66 percent, according to a notice being published by the EPA in the Nov. 27 Federal Register. The Energy Policy Act of 2005 requires the United States to use 5.4 billion gallons of ethanol or other cleaner-burning biofuels in 2008. The target of 4.66 percent in the EPA standard is intended to meet that requirement. The law requires a steady increase in renewable fuel use to 7.5 billion gallons in 2012. The Energy Department's Energy Information Administration already projects that the United States will exceed even the 2012 requirement by next year. EPA is adjusting the 2008 standard from the 4.63 percent level it established in a May 1 final rule governing the renewable fuel standard. The recalculation is based on the most recent information about gasoline consumption. EPA is set to significantly expand the use of renewable and other alternative fuels when it proposes a rule by the end of the year to limit greenhouse gas emissions from vehicles.
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WORK ELIGIBILITY FORM TO BE ENFORCED
In late December, the Department of Homeland Security will begin enforcing the requirements in the new I-9 form listing acceptable forms of identification to prove identity and work eligibility. U.S. Citizenship and Immigration Services will begin enforcing the requirements 30 days after publication of the notice in the Federal Register. On the new form, employers are told they may not accept a Certificate of U.S. Citizenship (Form N-560 or N-570); a Certificate of Naturalization (Form N-550 or N-570); an Alien Registration Receipt Card (Form I-151); the unexpired Reentry Permit (Form I-327); and the unexpired Refugee Travel Document (Form I-571).
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WINTER COMMITTEE MEETINGS
Register today for the Winter Committee Meetings coming up in Salt Lake City UT on February 7-8 at the Salt Lake City Marriott—Downtown. This meeting provides an outlet for SIGMA members to Get Involved! Don’t forget that following the Committee Meetings, you can join us for the SIGMA/NPN/OPIS Executive Leadership Conference in Snowbird, Utah! SIGMA will offer van transportation.
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ENFORCEMENT DISCRETION REGARDING RFS REPORTING
Responding to a request from the Petroleum Marketers and Convenience Stores of Iowa, the Environmental Protection Agency issued an enforcement discretion letter regarding RFS reporting. It states, "as a matter of enforcement discretion, EPA will allow additional time for regulated parties to submit third quarter 2007 renewable fuel volume and RIN transaction reports provided that these reports are submitted to EPA no later than February 28, 2008.” Please go to the www.sigma.org to read the entire letter.
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RESEARCH INTO CELLULOSIC VIABILITY NEEDED
Current estimates might overstate the ability of the U.S. ethanol industry to use crop residues for cellulosic ethanol production, because some crop residues must be left on the ground to preserve soil health, according to a recent study by the U.S. Department of Agriculture. As a result, USDA said that more research is needed regarding how much cellulosic ethanol actually can be produced in a sustainable manner. The study also called for the government to develop "sound guidelines" for harvesting biomass in ways that do not harm the soil. The study said that a crop residue called corn stover is widely considered to be a potential primary source of feedstock for cellulosic ethanol. However, corn stover also is critical for replenishing soil organic matter that retains and recycles nutrients, improves soil structure, enhances water exchange and aeration, and sustains microbial life. As a result, he said that more biomass must come from other sources such as switchgrass or municipal waste to maintain both soil quality and current projected levels of cellulosic ethanol production.
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GREENHOUSE GAS EMISSIONS DECLINE IN 2006
In a report by the Energy Information Administration released on Nov. 28, warmer weather and decreased energy demand caused the annual total of U.S. emissions of greenhouse gases to drop 1.5 percent in 2006. Total combined emissions of carbon dioxide-equivalent from power plants, transportation, and other sources declined from 7,181 million metric tons in 2005 to 7,075 million metric tons in 2006. The decline is the first annual reduction in greenhouse emissions since 2001 and only the third since 1990, according to the report, Emissions of Greenhouse Gases in the United States 2006. Greenhouse gas emissions from the transportation sector were slightly higher in 2006, rising to 1,990 million metric tons from 1,986 million metric tons in 2005. The report says increased use of ethanol fuel has slowed the rate of emissions growth in the sector.
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SAVE $50 ON THE EXECUTIVE LEADERSHIP CONFERENCE!
Save $50 by making plans today to join your colleagues in Snowbird, Utah on February 10-13 for the SIGMA/NPN/OPIS 2008 Executive Leadership Conference! The conference will be held at the Cliff Lodge Hotel. Please visit www.sigma.org for registration forms and hotel information. Late rates go into effect on Friday, December 7. The room block expires on December 7. In addition to all the great wintertime activities, there is a ton of education planned! For full education session descriptions, go to www.sigma.org.
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SIGMA Weekly Report December 3, 2007 © Copyright SIGMA, 2007
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