Annual Energy Outlook 2006 with Projections to 2030 - Usinfo.org

Legislation and Regulations• Renewable energy systems• Advanced fossil energy technologies, includingcoal gasification meeting certain requirements• Hydrogen fuel cell technologies for residential, industrial,or transportation applications• Advanced nuclear energy facilities• Carbon capture and sequestration practices andtechnologies• Technologies for efficient generation, transmission,and distribution of electric power• Efficient end-use energy technologies• Production facilities for fuel-efficient vehicles, includinghybrids and advanced diesel vehicles• Pollution control equipment• Refineries.Loan guarantees will also be available for gasificationfacilities that meet certain criteria. Eligible gasificationprojects include IGCC plants where 65 percent ofthe fuel used is a combination of coal, biomass, andpetroleum coke and 65 percent of the energy output isused to produce electricity. IGCC plants with a capacityof at least 100 megawatts using western coal arealso eligible. To receive loan guarantees, the IGCCprojects must emit no more than 0.05 pound of SO 2 ,0.08 pound of nitrogen oxides (NO x ), and 0.01 poundof particulates per million Btu of fuel input and mustremove 90 percent of the mercury in any coal that isused.Because funding levels and specific rules for this programare not yet known, its potential impacts are notrepresented in AEO2006. The program could providea flexible tool for stimulating investment in a widearray of promising technologies [4]. The leverageachieved by the program will depend on the risksassociated with the projects supported and theexpected loss that would occur if a loan defaultoccurred. For loans of the same size, riskier projectsrequire more Federal funding.California Greenhouse Gas EmissionsStandards for Light-Duty VehiclesThe State of California was given authority underCAAA90 to set emissions standards for light-dutyvehicles that exceed Federal standards. In addition,other States that do not comply with the NationalAmbient Air Quality Standards (NAAQS) set by theEPA under CAAA90 were given the option to adoptCalifornia’s light-duty vehicle emissions standards inorder to achieve air quality compliance. CAAA90 specificallyidentifies hydrocarbon, carbon monoxide,and NO x as vehicle-related air pollutants that can beregulated. California has led the Nation in developingstricter vehicle emissions standards, and other Stateshave adopted the California standards [5].California Assembly Bill 1493 (A.B. 1493), signed intolaw in July 2002, required the California AirResources Board (CARB) to develop and adopt GHGemissions standards for light-duty vehicles thatwould provide the maximum feasible reduction inemissions. In determining the maximum feasiblestandard, CARB was required to consider costeffectiveness,technological capability, economicimpacts, and flexibility for manufacturers in meetingthe standard. CARB was not allowed to consider thefollowing compliance options: mandatory trip reductions;land use restrictions; additional fees and/ortaxes on any motor vehicle, fuel, or vehicle miles traveled;a ban on any vehicle category; reduction in vehicleweight; or a limitation or reduction of speed limitson any street or highway in the State. Tailpipe emissionsof CO 2 , which are directly proportional to vehiclefuel consumption, account for the vast majority oftotal GHG emissions from vehicles. In August 2004,CARB released a report detailing its proposedGHG emissions standards for light-duty vehicles,which were approved by California’s Office of AdministrativeLaw on September 15, 2005.The standards approved in September 2005 coverGHG emissions associated with vehicle operation, airconditioning operation and maintenance, and productionof vehicle fuel. The standards apply to noncommerciallight-duty passenger vehicles manufacturedfor model years 2009 and beyond. The standards,specified in terms of CO 2 equivalent emissions, applyto vehicles in two size classes: passenger cars andsmall light-duty trucks with a loaded vehicle weightrating of 3,750 pounds or less; and heavy light-dutytrucks with a loaded vehicle weight rating greaterthan 3,750 pounds and a gross vehicle weight ratingless than 8,500 pounds. The CO 2 equivalent emissionstandard for heavy light trucks includes noncommercialpassenger trucks between 8,500 pounds and10,000 pounds. The regulations approved in September2005 set near-term standards, to be phased inbetween 2009 and 2012, and mid-term standards, tobe phased in between 2013 and 2016. After 2016, theemissions standards are assumed to remain constant.Table 2 summarizes the CO 2 equivalent standards.In October 2003, California, 11 other States, 3 cities,and several environmental groups filed a petition in22 Energy Information Administration / Annual Energy Outlook 2006