Federal Efforts to Reduce Oil Imports and Greenhouse Gas Emissions from Transportation

Greg DotsonOffice of Rep. Henry A. Waxman

House Government Reform Committee, Minority Staff

Oil Dependence/Global Warming Inextricably Linked

Tom Toles, Washington Post (Apr. 3, 2006).

Petroleum Demand, Imports, Carbon Emissions Increasing (EIA)

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Federal Efforts Over the Last 6 Years

Rhetorical recognition of problem• Administration and U.S. Senate

• The House of Representatives more mixed• Recognition of problems with dependence on

foreign oil

• Largely ignored global warming

Refusal to take meaningful action

Administration has not Addressed Oil Dependence/Global Warming

Administration set a nonbinding goal to allow actual U.S. emissions of global warming pollution to rise by 14 percent by 2012.

Administration has not Addressed Oil Dependence/Global Warming

Administration has opposed any constraints on greenhouse gases or the use of oil. • Declared CO2 not a pollutant

• Rejected Kyoto Protocol

• Rejected targets and timeframes for renewable energy at WSSD

• Denied petition to regulate CO2

• Opined that State programs to reduce CO2 emissions from automobiles are preempted

• Opposed proposals for energy bill to increase CAFE stds or reduce oil demand

• Has not (yet) granted CA waiver

Positive Efforts Outweighed

Modified CAFE for light duty trucks• Increased by 1.8 mpg by 2011, but approx. 1/3 of

projected savings due to increasing fuel prices

• Extended dual fuel loophole

• No increase in CAFE for passenger automobiles

Supported tax credits for hybrids• Dwarfed by early tax incentives for SUV’s weighing

more than 6,000 pounds

Congress Failed to Require an Increase in Vehicle Efficiency

2001 – proposal to increase CAFE stds defeated, 160-269

2003 -- proposal to increase CAFE stds defeated, 162-268

2005 – proposal to increase CAFE stds defeated, 177-254

Congress Considered Other Proposals to Reduce Oil Demand

New framework that gained some traction -- Congress sets clear goal of reducing oil demand with iterative process by Administration to achieve goal over time.• Promoted rational process by Administration

• Decisions could be made on the record

• Promoted scrutiny of oil use throughout economy, not just in light duty vehicles, which comprise ~40% of oil use.

Senate Rejected More Aggressive Proposal to Reduce Oil Demand

Cantwell Amendment would set goal of reducing need for imported oil by 40 percent by 2025 from projected levels.

Rejected 47-53• 97% Dems supported, 94% Repubs opposed

Administration Opposed and Congress Rejected Less Aggressive Proposal to Reduce Oil Demand

Senate twice passed an amendment to require a plan to reduce oil demand by a million barrels per day within a decade.

House rejected a similar amendment on a vote of 166-262

Administration strongly objected to the provision and it was dropped in conference.

EPACT 05 Established Renewable Fuel Standard (RFS)

4 billion gallons/yr in 2006 –> 7.5 billion gallons/yr in 2012.

National Corn Growers Association and U.S. EPA say demand for renewable fuels is already projected to outpace RFS requirements.

27 ethanol facilities under construction. Scores more on the drawing board. Almost all planned to be coal-fired, negating greenhouse gas benefits.

Advanced Energy Initiative

Response to “addicted to oil” in State of the Union 2006. President said it will result in replacing “more than 75 percent of our oil imports from the Middle East by 2025.”

$118 million over several years to fund research for ethanol, batteries, and hydrogen.

Overall, cuts vehicle technology research at DOE.

Advanced Energy Initiative in Context

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Groups Urging Action

Historically, environmental groups have taken the lead. Ethanol lobby has had a role.

New groups add new voices• Set America Free

• Energy Future Coalition

• Apollo Alliance

Legislation Gathering Support H.R. 5642 Safe Climate Act (Waxman) – Adopts CA car

emission standards at federal level and establishes declining carbon cap – 110 cosponsors.

H.R. 5965 Progress Act – provides government incentives to promote biofuels and enhanced vehicle efficiency

H.R. 4409 Fuel Choices for American Security Act – establish planning process for reducing oil demand, promotes ethanol, requires flex fuel vehicles

H.R.5372 Biofuel Act – accelerate requirements for ethanol production, require E85 pumps

110th Congress

High level of interest in Congress in global warming and oil dependence that hasn’t previously been experienced.

National focus on state and local actions Media attention

Conclusion

No significant progress adopting policies in recent years.

However, support appears to be growing for federal action.

As California Goes, So Goes the Nation?

Tom Toles, Washington Post (Sept. 1, 2006)