U.S. Legislative Issues

The Committee on Energy and Commerce of the U.S. House of Representatives is issuing a series of white papers as the first step in reviewing the renewable fuel standard (RFS). The RFS was created by the Energy Policy Act of 2005 and greatly expanded under the Energy Independence and Security Act of 2007. It sets targets and timetables for four categories of biofuels to be added into the nation’s transportation fuel supply. Each category must meet specific requirements as to its feedstock and its lifecycle greenhouse gas emissions. The four categories are: conventional biofuel (corn-derived ethanol), biodiesel, cellulosic biofuel, and undifferentiated advanced biofuel. The targets for the four categories total 16.55 billion gallons for 2013, of which not more than 13.8 billion gallons is conventional biofuel. Conventional biofuel is scheduled to reach its cap of 15 billion gallons by 2015, while the other categories continue to rise until the total RFS reaches 36 billion gallons by 2022.

The first white paper white paper addresses the so-called blend wall and fuel compatibility issues. The blend wall is the limit at which ethanol can readily be added to the gasoline supply in order to comply with the RFS.
The document is available at http://energycommerce.house.gov/sites/republicans.energycommerce.house.gov/files/analysis/20130320RFSWhitePaper1.pdf


The Internal Revenue Service (IRS) has issued limitations on depreciation deductions for owners of passenger vehicles first placed in service during calendar year 2013. IRS Revenue Procedure 2013-21 includes separate tables of limitations on depreciation deductions for trucks and vans; and the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2013, including a separate table of inclusion amounts for lessees of trucks and vans. The IRS notice includes the additional first year depreciation of $8,000 for passenger automobiles that was included in the American Tax Payer Relief Act of 2012. The IRS document is available at http://www.irs.gov/pub/irs-irbs/irb13-12.pdf


A new National Research Council report finds that by the year 2050, the U.S. may be able to reduce petroleum consumption and greenhouse gas emissions by 80 percent for light-duty vehicles -- cars and small trucks -- via a combination of more efficient vehicles; the use of alternative fuels like biofuels, electricity, and hydrogen; and strong government policies to overcome high costs and influence consumer choices. According to the report, while achieving these goals will be difficult, improving technologies driven by strong and effective policies could make deep reductions possible. The study was sponsored by the U.S. Department of Energy's Office of Efficiency and Renewable Energy.


President Obama has proposed tax credits for purchasers of trucks powered by natural gas. The proposal would provide a tax credit equal to 50 percent of the price differential between diesel-powered trucks and natural-gas vehicles, up to $40,000 per vehicle. The proposal is part of the President’s "Blueprint for a Clean and Secure Energy Future" released by the White House in March.


The major automakers have asked the U.S. Supreme Court to hear a challenge to the Environmental Protection Agency's decision to approve a higher blend of ethanol for vehicles from 2001 and newer. The Alliance of Automobile Manufacturers, the Association of Global Automakers, the Outdoor Equipment Institute and the National Marine Manufacturers Association filed a petition on March 25 asking the U.S. Supreme Court to overturn the D.C. Circuit Court of Appeals' August decision that none of the trade associations or parties had the legal standing to challenge approval of E15.