Biofuels

The new energy legislation sets a rising mandate for renewable energy up to 36 billion gallons a year by 2022 and establishes higher fuel economy standards for passenger cars and light trucks for the first time in more than three decades. But many analysts believe there’s enough political momentum within the Democratic-controlled Congress to insert the renewable tax credits - many of which expire at the end of 2008 - into other legislation in the new year. Also, key proponents of the renewable energy mandate have vowed to bring up the bill in the next Congress. Their strong lobbying effort motivated Republican senators to block the revenue-raising items that could have cost the large oil companies more than $13 billion over the next 10 years. He said many refiners feared that uncertain production of biofuels in the years ahead - in the case of drought, or if planned advanced biofuel technologies didn’t deliver - would mean multi-billion-dollar investments would leave stranded assets. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.