The new energy bill may not actually reduce our dependence on foreign oil but it does create clear mandates for renewable fuels to 36 billion gallons by 2022, 16 billion of which would come from cellulosic ethanol.
The law also requires that automakers achieve an industry average fuel efficiency for cars, SUVs and small trucks of 35 miles per gallon by 2020. This represents the first increase in the federal requirement in 32 years.
Opponents of the energy bill have said that China has more stringent automobile efficient standards.
My problem with the bill is that the bill preaches energy conservation which is nice but does little to suggest how we increase production. In fact, by increasing the ethanol standards which is a home run for companies such as ADM, we are shifting the burden from the oil tank to the farm lands. Ultimately, the burden may move to the consumer due to increased costs for food, energy efficient light bulbs, etc. In the end, we must ask what does the bill actually do and who does it help?
Any answers?