Weekly Climate Policy Update - December 21, 2007

This week, President Bush signed an energy bill that significantly increases fuel economy standards for cars and light trucks, mandates greater biofuels production, and creates efficiency standards for buildings. Although the bill was not as comprehensive as earlier versions – which included a renewable portfolio standard and tax incentives for renewable energy production – it addresses a number of energy issues facing the U.S. The enactment of the bill and its increased fuel economy standards also contributed to EPA’s landmark decision to deny California’s request for a waiver to implement its vehicle CO¬2 emission standards. The denial marks the first time that EPA has denied such a waiver and sets the stage for a showdown between the state and the agency. The denial, and EPA’s reasoning for denying the waiver, may have important implications for the future of GHG regulation at the agency.