New Energy Bill Increases Fuel Economy And Production Of Ethanol

Ethanol production will grow by 36 billions gallons a year by 2022.

The U.S. Senate passed an energy bill on June 21 that will require vehicle manufacturers to increase the average fuel economy by 40% to 35 miles per gallons by 2020, as reported by AP. This law affects car, SUVs and pickup trucks.

It would be the first increase in vehicle fuel efficiency since the current 22.7mpg for cars was put in place in 1989.

The bill's supporters estimated that the new requirement would save 2.5 million barrels of oil a day by 2025

The bill requires ethanol production to grow to at least 36 billion gallons a year by 2022, a sevenfold increase of the amount of ethanol processed last year.

The legislation also calls for grants, loan guarantees and other assistance to promote research into fuel efficient vehicles, including hybrids, advanced diesel and battery technologies.

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