The Car and Truck Fleet and Leasing Management Magazine

EPACT2005 Impact Seen in EIA Analysis of U.S. Energy Supply and Price

December 26, 2006

WASHINGTON, D.C. – The Energy Information Administration (EIA) has released a mid-term forecast and analysis of the U.S. energy supply, demand, and prices through 2030. The report cited the impact of the Energy Policy Act of 2005 regarding the increased production and consumption of alternative fuels, such as ethanol, biodiesel, and coal-to-liquids, and increased nuclear power and renewable energy production. Ethanol use is projected to grow from 4 billion gallons in 2005 to 11.2 billion gallons in 2012 and 14.6 billion gallons in 2030. This standard exceeds the Renewable Fuel Standard enacted as a part of the energy bill. Ethanol-related provisions and requirements in the bill help spur investment in ethanol production and the creation of American jobs. Alternative distillate fuel sources are projected to grow to more than 7 percent of the total distillate pool by 2030, when consumption of biodiesel reaches 0.4 billion gallons and distillate produced from coal-to-liquids reaches 5.7 gallons. The consumption of biodiesel is supported by tax credits in EPACT2005. The production of coal to liquid fuels is encouraged by the loan guarantees in the energy bill for clean technologies. Sales of flex-fuel vehicles, capable of using gasoline and E-85, are projected to reach 2 million per year in 2030. Unconventional vehicle technologies, including cars powered by electricity, fuel cells, or hydrogen, are projected to account for almost 28 percent of projected total new light-duty vehicle sales in 2030, up from just more than 8 percent in 2005. In January 2006, EPACT2005 replaced the tax deduction for buying hybrid cars with a more generous tax credit, giving consumers a greater incentive to buy fuel-efficient cars.
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