Not less than a week ago, after i had commented on $100 plus Oil Prices and the change in market dynamics, on Dec 7th, US government has amended Corporate Average Fuel Economy (CAFE) regulations, which was first enacted in 1975 to improve the average fuel economy of cars and light trucks.
As i had mentioned, the bill seeks to improve the operational efficiency of the current fuel usage and also has lots of provisions to increase renewable fuels. Other countries should also take a cue and enact similar Energy policies with distinctive national requirements.
Some of the highlights of the Energy Bill are:
- Provisions to accelerate the electrification of transportation
- 40% increase in fuel economy requirement by 2020
- Increase the renewable fuel standard to 36 billion gallons per year by 2022
- elimination of about $13 billion in tax subsidies for big energy companies
Resource: H.R.6: Energy Independence and Security Act of 2007 (Engrossed Amendment as Agreed to by House)
Will have to wait and watch as to how the automobile manufacturer's and green house lobby react to the bill.
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