Legislation and Regulations

4.  E85 is a fuel containing a blend of 70 to 85 percent ethanol and 30 to 15 percent gasoline by volume. 

5.  The ethanol tax credit was first established in 1978. It has been extended in 1980, 1983, 1984, 1990, 1998, and 2005. 

6.  The PTC was subsequently extended in 1999, 2002, 2004, and 2005. Some extensions have included significant modifications, including changes in eligible resources, changes in the value and duration of the credit for certain resources, and changes in the treatment of the credit with respect to the Alternative Minimum Tax. 

7.  Regional Greenhouse Gas Initiative, “Model Rule & Amended Memorandum of Understanding” (August 2006), web site www.rggi.org/modelrule.htm. 

8.  Regional Greenhouse Gas Initiative, “Memorandum of Understanding” (December 2005), web site www.rggi. org/agreement.htm. 

9.  For the complete text of the Energy Policy Act of 2005, see web site http://frwebgate.access.gpo.gov/cgi-bin/ getdoc.cgi?dbname=109_cong_public_laws&docid=
f:publ058.109.pdf. 

10.  Energy Information Administration, “EPACT2005 Summary,” Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, February 2006), pp. 15-22, web site www.eia.doe.gov/oiaf/archive/aeo06. 

11.  See, for example, web site http://energy.senate.gov/ public/_files/PostConferenceBillSummary.doc. 

12.  U.S. Department of Transportation, National Highway Traffic Safety Administration, “Average Fuel Economy Standards for Light Trucks Model Years 2008-2011,” 49 CFR Parts 523, 533 and 537 (Docket No. 2006-24306, RIN 2127-AJ61), web site www. nhtsa.dot.gov/staticfiles/DOT/NHTSA/Rulemaking/ Rules/Associated%20Files/2006FinalRule.pdf. 

13.  Energy Information Administration, “Proposed Revisions to Light Truck Fuel Economy Standards,” Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, February 2006), pp. 23-24, web site www.eia.doe.gov/oiaf/archive/aeo06. 

14.  U.S. Environmental Protection Agency, “Standards of Performance for Stationary Compression Ignition Internal Combustion Engines,” 40 CFR Parts 60, 85, 89, 94, 1039, 1065, and 1068 (EPA-HQ-OAR-2005- 0029, FRL-8190-7, RIN 2060-AM82), web site www. epa.gov/fedrgstr/EPA-AIR/2006/July/Day-11/a5968. htm. 

15.  See Energy Information Administration, “Clean Air Nonroad Diesel Rule,”Annual Energy Outlook 2005, DOE/EIA-0383(2005) (Washington, DC, February 2005), pp. 14-17, web site www.eia.doe.gov/oiaf/ archive/aeo05. 

16.  Transition regulations apply to engines constructed or ordered after July 11, 2005, and manufactured after April 1, 2006. 

17.  The regulations specify different time tables and limits for emergency and fire pump engines. 

18.  Alpha-Gamma Technologies, Inc., “Population and Projection of Stationary Engines” (Memorandum, June 20, 2005), p. 3, web site www.epa.gov/ttn/atw/ nsps/cinsps/nsps_population_projection4.pdf. 

19.  Energy Policy Act of 2005, Section 1501. For complete text, see web site http://frwebgate.access.gpo.gov/ cgi-bin/getdoc.cgi?dbname=109_cong_public_laws& docid=f:publ058.109.pdf. 

20.  Energy Information Administration, “Status and Impact of State MTBE Bans” (March 2003), p. 1, web site http://tonto.eia.doe.gov/FTPROOT/service/mtbe. pdf. 

21.  U.S. Environmental Protection Agency, “State Actions Banning MTBE” (June 2004), web site www. epa.gov/mtbe/420b04009.pdf. 

22.  The Federal motor fuels excise tax credit for blending ethanol has been in place since 1978, at 51 cents per gallon. Its expiration date has been extended several times by Congress. Most recently, the American Jobs Creation Act of 2004, Section 301, extended the credit through 2010. 

23.  U.S. Department of Energy, Energy Efficiency and Renewable Energy, “Federal Fleet Requirements” (May 2006), web site www1.eere.energy.gov/ vehiclesandfuels/epact/federal. 

24.  The requirement is actually for 2.7 percent oxygen by weight, which corresponds to 7.7 percent ethanol by volume. See Minnesota Department of Agriculture, “Economic Impact of the Ethanol Industry in Minnesota” (May 2003), p. 8, web site www.mda.state.mn.us/ ethanol/economicimpact.pdf. 

25.  State of Hawaii, “New-Fuel.com—Your Source for Information About Hawaii’s Transition to Ethanol-Blended Fuel,” web site www.hawaii.gov/dbedt/ert/ new-fuel. 

26.  National Biodiesel Board, “Minnesota Diesel Now Contains Two Percent Biodiesel Statewide” (Press  

 Release, September 29, 2005), web site www.biodiesel. org/resources/pressreleases/gen/20050929_mn_ mandate_implemented.pdf. 

27.  National Biodiesel Board, “Washington State Adopts Biodiesel Requirement” (Press Release, March 30, 2006), web site www.biodiesel.org/resources/pressreleases/gen/20060330_WA_B2.pdf. 

28.  Green Car Congress, “Louisiana Legislature Passes 2% Renewable Fuels Standard” (June 9, 2006), web site www.greencarcongress.com/2006/06/louisiana_ legis.html. 

29.  State of Louisiana, “Governor Blanco Signs HB 685” (Press Release, June 12, 2006), web site www.gov. state.la.us/index.cfm?md=newsroom&tmp=detail& articleID=1945. 

30.  Testimony of Robert Carroll, Deputy Assistant Secretary, Tax Analysis, U.S. Department of the Treasury, before the Subcommittee on Highways, Transit, and Pipelines, Committee on Transportation and Infrastructure, U.S. House of Representatives (April 4, 2006). 

31.  Testimony of Donald Marron, Acting Director, Congressional Budget Office, before the Subcommittee on Highways, Transit, and Pipelines, Committee on Transportation and Infrastructure, U.S. House of Representatives (April 4, 2006). 

32.  The U.S. Department of Defense maintains a detailed compilation of Federal, State, and local fuel taxes, inspection fees, and other environmental taxes and fees that apply to the sale of fuel. This compilation, which was last updated in August 2006, can be found at web site www.desc.dla.mil/DCM/Files/Tax compilation 2006-12.doc. 

33.  The ethanol tax credit was first established in 1978 and has been modified or extended in 1980, 1983, 1984, 1990, 1998, and 2005. 

34.  D. Nilles, R. Kotrba, J. Williams, and T. Bryan, “A Boost for Biodiesel,” Biodiesel Magazine (August/September 2005), web site www.biodieselmagazine.com/ article.jsp?article_id=376. 

35.  Eligible wind, poultry litter, geothermal, and certain hydroelectric and biomass facilities can claim the full 1.9-cent tax credit. Facilities burning eligible waste streams, including municipal waste, landfill gases, agricultural and landscaping residues, and forestry and mill wastes receive one-half the value of the credit given to other facilities, currently 0.95 cents. 

36.  Expiration on June 30, 1999, reauthorized on December 17, 1999; expiration on December 31, 2001, reauthorized on March 9, 2002; expiration on December 31, 2003, reauthorized on October 4, 2004. Reauthorized on August 8, 2005, before scheduled expiration at the end of 2005. Current expiration scheduled for December 31, 2007. 

37.  Energy Information Administration, “State Renewable Energy Requirements and Goals: Update Through 2005,” Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, February 2006), pp. 24-27, web site www.eia.doe.gov/oiaf/archive/ aeo06. 

38.  E-mail communication with Ray Williamson, Arizona Corporation Commission, August 28, 2006. 

39.  Arizona Corporation Commission, “In the Matter of the Proposed Rulemaking for the Renewable Energy Standard and Tariff Rules,” Docket No. RE-00000C- 05-0030, web site www.cc.state.az.us/utility/electric/ RES-03-14-06.pdf (March 14, 2006). 

40.  California Public Utilities Commission, “Renewable Energy,” web site www.cpuc.ca.gov/static/energy/ electric/renewableenergy. 

41.  California Energy Commission, Renewable Energy Program: Overall Program Guidebook, CEC-300- 2006-008-F (Sacramento, CA, April 2006), web site www.energy.ca.gov/2006publications/CEC-300-2006- 008/CEC-300-2006-008-F.pdf. 

42.  See web sites www.leginfo.ca.gov/pub/bill/sen/sb_ 0101-0150/sb_107_bill_20060926_history.html and www.leginfo.ca.gov/pub/bill/sen/sb_0101-0150/sb_ 107_bill_20060926_chaptered.pdf. 

43.  State of Connecticut, “An Act Concerning Biomass,” Substitute Senate Bill No. 212, Public Act No. 06-74, web site www.cga.ct.gov/2006/ACT/PA/2006PA- 00074-R00SB-00212-PA.htm. 

44.  State of Maine, “An Act To Enhance Maine’s Energy Independence and Security,” Chapter 677, H.P. 1439 - L.D. 2041, web site www.mainelegislature.org/legis/ bills/chapdocs/PUBLIC677.doc. 

45.  Commonwealth of Massachusetts, Office of Consumer Affairs and Business Regulation, “Policy Statement on the RPS Eligibility of Retooled Biomass Plants” (October 27, 2005), web site www.mass.gov/doer/rps/rps- pol-stat-elig-biomass.pdf. 

46.  Commonwealth of Massachusetts, Office of Consumer Affairs and Business Regulation, “Annual RPS Compliance Report for 2004” (January 9, 2006), web site www.mass.gov/doer/rps/rps-2004annual-rpt.pdf. 

47.  Public Utilities Commission of Nevada, “Revised Adopted Regulation of the Public Utilities Commission of Nevada,” LCB File No. R167-05 (February 23, 2006), web site www.leg.state.nv.us/Register/2005 Register/R167-05RA.pdf. 

48.  New Jersey Board of Public Utilities, New Jersey Administrative Code Title 14, Chapter 8, Subchapter 2, “Renewable Portfolio Standards (RPS) Rules Adoption” (April 13, 2006), web site www.state.nj.us/ bpu/wwwroot/secretary/RPS_148.2.pdf. 

49.  Wisconsin State Legislature, “Engrossed 2005 Senate Bill 459” (February 22, 2006), web site www.legis. state.wi.us/2005/data/SB-459eng.pdf. 

50.  Note that the AEO2007 reference case is based on the California legislative target (as of September 1, 2006) of 10 percent by 2017. Legislation accelerating the deadline to 2010 was signed into law too late to be included in the AEO2007 projections. 

51. Federal Register, Vol. 70, No. 91 (May 12, 2005), 40 CFR Parts 51, 72, 73, 74, 77, 78, and 96.

52. Federal Register, Vol. 70, No. 95 (May 18, 2005), 40 CFR Parts 60, 72, and 75.

53. Energy Information Administration, “Federal Air Emissions Regulations,” Annual Energy Outlook 2006, DOE/EIA-0383(2006) (Washington, DC, Febru-ary 2006), pp. 28-29, web site www.eia.doe.gov/oiaf/ archive/aeo06.

54. State and Territorial Air Pollution Program Adminis-trators (STAPPA) and the Association of Local Air Pol-lution Control Officials (ALAPCO), “State Mercury Programs for Utilities” (August/September 2006), web site www.4cleanair.org/StateTable.doc.

55. State of Maine, “States Reach Agreement on Proposed Rules for the Nation’s First Cap-and-Trade Program to Address Climate Change” (Press Release, August 15, 2006), web site http://mobile.maine.gov/news/ ?sid=22966.

56. M. Finnegan and M. Lifsher, “State’s Greenhouse Gas Bill Signed,” Los Angeles Times (September 27, 2006).

57. F. Barringer, “Officials Reach California Deal To Cut Emissions,” New York Times (August 31, 2006). 58.West Coast Governors’ Global Warming Initiative, web site www.ef.org/westcoastclimate.

58.West Coast Governors’ Global Warming Initiative, web site www.ef.org/westcoastclimate.