(22/06/07) U.S. Senate Bill Lifts Car Car-Fuel Standards, Boosts Ethanol Use

It was reported by Bloomberg  that the U.S. Senate passed legislation that would overhaul car fuel economy standards for the first time in more than two decades and quadruple the use of alternative fuels.

The energy bill was approved by a 65 to 27 vote last night. It forces automakers to build cars that average 35 miles a gallon, a 40 percent increase in fuel efficiency, by model year 2020. The measure also responds to President George W. Bush's call to boost the use of alternative fuels by requiring 36 billion gallons of ethanol and other so-called biofuels by 2022.

Record retail gasoline and oil prices in the past year as well as concerns about national security and global warming, have led to increasing calls to reduce U.S. consumption of oil. Average U.S. gasoline prices at the pump reached a record $3.218 a gallon last month. Crude prices on the New York Mercantile Exchange hit a record $78.40 a barrel last July.

 

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