Contents:

1. Summary
2. Fuel Economy and the Energy Bill
3. Cool Fuels
4. Global Warming Emissions and Automobiles

Summary

Determined efforts by UCS and its allies produced an historic accomplishment—the U.S. Senate passed a 35 miles per gallon fuel economy standard as part of the comprehensive Energy Bill. The Senate also passed a mandate to increase the use of alternative fuels, but the standards to ensure sustainable fuels production need to be strengthened. The House did not pass either renewable fuels or fuel economy legislation. The reconciliation of these two versions of the Energy Bill will be pivotal. UCS was also active on state policy, ensuring that California's Clean Car standards were not undermined by Congress. UCS also introduced this low carbon fuel concept in the Midwest, the nation's epicenter of biofuels production.

Fuel Economy and the Energy Bill

Our work to build congressional support for meaningful increases in fuel economy standards over the past six months turned from concept to stunning reality during the development of the comprehensive Energy Bill.

In June, after thousands of phone calls and emails from UCS supporters, the Senate passed a substantial increase to the corporate average fuel economy (CAFE) standard of the nations' fleet of cars and trucks by setting a target of 35 miles per gallon by 2020. That's up 40 percent from the 2006 car and truck average of nearly 25 miles per gallon (the current requirements are 22.2 miles per gallon for SUVs and small trucks and 27.5 miles per gallon for cars—though the actual car average is about 29 miles per gallon). This was the first time the Senate passed a meaningful increase in fuel economy standards in 30 years. UCS analysts and advocates were especially active during the Senate debate on this issue, providing key fact sheets to counter a relentless spin campaign by the automakers attempting to undermine support for the new standard. Senate Majority Leader Harry Reid (D-NV) personally thanked UCS for their contribution to this significant victory.

In the House of Representatives, which traditionally supports the automakers, Representatives Baron Hill (D-IN), Lee Terry (R-NE), Joe Barton (R-TX), Roy Blunt (R-MO), and Dennis Hastert (R-IL) introduced industry-backed alternatives to the strong standards put forward by Congressmen Ed Markey (D-MA) and Todd Platts (R-PA). This “compromise” legislation would not address the key emissions and energy security issues stemming from the automative sector. UCS activists were heavily engaged in pushing back against this automaker strategy in the House, delivering email messages, phone calls, letters to the editor, and even sending over a thousand personalized gas receipts to Congress as part of our "Receipt Revolution!" campaign.

The end result in the House was a stalemate, as neither the industry-backed proposal, nor the Markey-Platts standard made it into the final House Energy Bill. House Democratic leadership, however, has publicly endorsed the Senate standards. UCS and its allies will continue to actively press for both the adoption and strengthening of the Senate standards as the House-Senate conference committee works to resolve the differences between their respective Energy Bills this fall.

Cool Fuels

In our initial “Fuel A Cooler Future” Energy Bill action, UCS activists asked members of Congress to support only alternative fuels that could be sustainably produced and would contribute to a reduction in global warming pollution. Fortunately, Congress listened, rejecting efforts to increase production of liquid coal—a transportation fuel that could double the emissions compared to conventional gasoline. The Senate took action on biofuels—energy produced from organic matter like switchgrass-based ethanol–by passing a renewable fuel standard (RFS) as part of the Energy Bill; the House remained relatively silent. Unfortunately, the Senate bill had only minimal guarantees for sustainable biofuels production. The Senate included a requirement that all new biofuel facilities produce fuels that emit 20 percent less carbon dioxide than gasoline. Unfortunately, the “advanced biofuels” mandate included no additional requirements, except that they be produced from something other than corn kernels. This is a serious missed opportunity. Given the size of the biofuel requirement (36 billion gallons total in 2022) we will be looking to add some additional carbon reduction requirements and sustainability criteria in the final package.

In the Midwest, the current focus of biofuels production in the United States, UCS has been working with consultants in Iowa, Illinois, Minnesota, and Wisconsin to elevate the awareness and support for a low carbon approach to biofuels policy development. UCS staff and consultants were heavily engaged in the Illinois governor’s climate task force, which is expected to recommend a low carbon fuel standard as part of an overall climate package. Similar climate committees have been created in Iowa, Minnesota, and Wisconsin, and UCS will work to engage these groups and other key decision makers this fall, using the upcoming UCS Low Carbon Fuel Standard report as the foundation for education and advocacy activities in the region.

Global Warming Emissions and Automobiles

The Supreme Court victory on automotive global warming pollution triggered the Environmental Protection Agency (EPA) to begin considering the long-delayed waiver that California and other states need to implement clean car standards that are stronger than the federal standards.

At the first waiver hearing in metropolitan Washington, D.C., top California officials joined stakeholders from a range of state governments and public interest groups to urge the EPA to allow California to implement its precedent-setting tailpipe global warming pollution standards. The standards, which would begin with 2009 model year vehicles, require an initial 25 percent reduction in car emissions and an 18 percent reduction in SUV emissions. Eleven other states are posed to implement California’s clean car standards—once the EPA finally grants the waiver.

The hearing was dominated by witnesses in support of California’s law, including Adam Lee, an auto dealer from Maine, UCS Clean Vehicles Washington Representative Eli Hopson, and almost a dozen UCS activists in the. Hopson emphasized in his testimony that the automakers already have the technology to build affordable vehicles that meet or exceed California’s global warming pollution standards (for more information, see the UCS Vanguard). He reminded the EPA that even if the administration moves forward with a national standard, California must retain the authority to set higher standards. In addition to the public hearing UCS also delivered over 11,000 activist comments in support of the waiver to EPA.

Although it is still uncertain whether the EPA will grant California a waiver to adopt the clean car rules, California Governor Arnold Schwarzenegger has promised legal action if the agency does not act on the state's waiver request—which was submitted over a year prior to the EPA’s taking any action. During debate on comprehensive energy legislation, Representative Rick Boucher (D-VA) introduced legislation that would prevent the EPA from granting the waiver. This legislation was not adopted as part of either the House or Senate Energy Bills after intense pressure from UCS and its allies helped prompt House Speaker Nancy Pelosi (D-CA) to summarily reject any attempt to undermine the California standard within the Energy Bill. Congressman Jay Inslee (D-WA) also introduced a free-standing bill aimed at speeding up the EPA's review of the state petition. Inslee's legislation also would set a deadline requiring the EPA to respond within 180 days on all future waiver requests.

In the meantime, on July 13, Florida Governor Charlie Crist signed an executive order to adopt the California Clean Car standards. The executive action can take effect without legislative approval provided that Florida is found in “non attainment” for ozone pollution by the EPA. This action clearly demonstrates the increased demand for clean car solutions in every region of the country. And, on September 12, a federal judge in Vermont ruled that states can regulate vehicle global warming pollution with the California Clean Car standards. UCS assisted the state of Vermont by providing technical analysis on the feasibility of complying with the Clean Car Standards through our UCS Vanguard vehicle design.

In addition to the California Clean Car standards, the EPA has begun to engage in a separate rulemaking regarding federal action on climate emissions from vehicles. The new ruling will necessitate the EPA to integrate the new global warming pollution rules with existing programs for other pollutants—including national ambient air quality standards, existing fuel rules and its overall relationship with the federal Clean Air Act. Early reports indicate that some key items modelers are analyzing are the proposals’ effects on fuel economy, fuel supply and impacts on non-road vehicles. UCS engineers, advocates, and activists will weigh in heavily on this process over the coming year to help guide the EPA toward a strong and sustainable federal rule.