Sponsored Link:

Ethanol, Mileage Agreements Reached Despite Disagreements

The Senate last week approved a bill calling for a bigger use of ethanol, as well as the first boost in gas mileage requirements in several decades.

Experts expect the House to do the same, possibly even taking action this week.

As currently written, the legislation would require ethanol production for vehicle use to climb to a minimum level of 36 billion gallons annually by 2022. It also mandates that “fleet” fuel economy reach a minimum of 35 miles per gallon by that same year.

The ethanol target is seven times the amount of that fuel processed last year. And the fleet fuel economy targets are 40% higher than the existing regulations for passenger cars, light trucks and sport utility vehicles.

Democratic leaders heralded the legislation as a big step towards the United States’ efforts to decrease its reliance on foreign oil. But others said that was a major overstatement, noting that there was far from widespread support for the measures. Indeed, resistance to the tougher fuel-mileage standards continued very late into the session and nearly derailed the resulting One other major complaint: The legislation doesn’t address ways to increase output of conventional domestic fuels, including natural gas and oil.

The legislation also addresses such topics as price gouging, financial incentives for alternative-fuel vehicles, and greater efficiency in both lighting and home appliances.

More on this topic (What's this?) Read more on Ethanol at Wikinvest
June 25th, 2007

Why Gold Will Surpass $2,500

Few investors realize that inflation is the least of the factors driving the bull market in gold. Other factors, like Venezuela's crackdown on gold exports, are likely to push prices higher. Find out how to play each of the "7 Key Drivers" in our Money Morning Publisher's Series report... Go here to get it for free.