United States Legislative Updates

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Climate Change Bill Introduced in the Senate

On May 12, Sen. John Kerry (D-MA) and Sen. Joseph I. Lieberman (I-CT) formally unveiled their new climate change legislation, the American Power Act. For the transportation sector, oil refiners and importers would purchase carbon allowances that correspond to the carbon footprint of the fuels they sell. These allowances would be purchased at a fixed price and outside of a carbon trading market. The money raised is split: one-third to the U.S. Department of Transportation's TIGER program; one-third to a new program to fund state and local projects that reduce oil consumption and greenhouse gas emissions; and one-third to the highway trust fund.

Other provisions of the American Public Power Act include a doubling of natural gas vehicle tax incentives over the next 10 years; investment in the domestic manufacturing of advanced technology vehicles as well as in the infrastructure necessary to support them, including regional and local pilot projects; and authority to the Environmental Protection Agency to require certain large vehicle fleets to report annual greenhouse gas emissions. Additional information is available at http://kerry.senate.gov/americanpoweract/pdf/APASectionbySection.pdf

White House Orders Heavy-Duty Fuel Economy Standards

President Obama announced on May 21 that he will direct federal agencies to set policies for the first time that would require fuel economy standards for medium- and heavy-duty trucks. The rules would take effect for model years 2014-2017. The President also directed the agencies to boost auto fuel economy standards for model-year 2017 and beyond. The effort also includes new support for the development of electric vehicles. The standards would be developed by the Environmental Protection Agency and the Department of Transportation.

Congress Nears Agreement on Biodiesel Tax Extension

The Senate and House tax writing committees have reached agreement on legislation extending several tax and spending measures. The legislation extends through 2010 the biodiesel, natural gas and propane vehicle fuel tax credits, as well as the vehicle purchase credit for medium- and heavy-duty hybrids. House leaders hope to get the package to the House floor and to the Senate for final action prior to the Memorial Day recess. Ongoing concerns over the impact on the federal deficit, however, could delay final action.