The U.S. Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy

[Excerpt] This report provides an in-depth analysis of the 2009 crisis in the U.S. auto industry and its prospects for regaining domestic and global competitiveness. It also analyzes business and policy issues arising from the unprecedented restructurings that occurred within the industry. The starting point for this analysis is June-July 2009, with General Motors Company (GM or new GM) and Chrysler Group LLC (or new Chrysler) incorporated as new companies, having selectively acquired many, but not all, assets from their predecessor companies. The year 2009 was marked by recession and a crisis in global credit markets; the bankruptcy of General Motors Corporation and Chrysler LLC; the incorporation of successor companies under the auspices of the U.S. Treasury; hundreds of parts supplier bankruptcies; plant closings and worker buyouts; the cash-for-clunkers program; and increasing production and sales at year’s end. This report also examines the relative successes of the Ford Motor Company and the increasing presence of foreign-owned original equipment manufacturers (OEMs), foreign-owned parts manufacturers, competition from imported vehicles, and a serious buildup of global overcapacity that potentially threatens the recovery of the major U.S. domestic producers. This report, which establishes a context for examining the industry and analyzes a unique but highly specific period in the U.S. automobile industry’s history, will not be updated

Fuel Ethanol: Background and Public Policy Issues

Ethanol plays a key role in policy discussions about energy, agriculture, taxes, and the environment. In the United States it is mostly made from corn; in other countries it is often made from cane sugar. Fuel ethanol is generally blended in gasoline to reduce emissions, increase octane, and extend gasoline stocks. Recent high oil and gasoline prices have led to increased interest in alternatives to petroleum fuels for transportation. Further, concerns over climate change have raised interest in developing fuels with lower fuel-cycle greenhouse-gas emissions. Supporters of ethanol argue that its use can lead to lower emissions of toxic and ozone-forming pollutants, and greenhouse gases, especially if higher-level blends are used. They further argue that ethanol use displaces petroleum imports, thus promoting energy security. Ethanol’s detractors argue that various federal and state policies supporting ethanol distort the market and amount to corporate welfare for corn growers and ethanol producers. Further, they argue that the energy and chemical inputs needed to turn corn into ethanol actually increase emissions and energy consumption, although most recent studies have found modest energy and emissions benefits from ethanol use relative to gasoline. The market for fuel ethanol is heavily dependent on federal incentives and regulations. Ethanol production is encouraged by a federal tax credit of 51 cents per gallon. This incentive allows ethanol — which has historically been more expensive than conventional gasoline — to compete with gasoline and other blending components. In addition to the above tax credit, small ethanol producers qualify for an additional production credit. It has been argued that the fuel ethanol industry could scarcely survive without these incentives. In addition to the above tax incentives, the Energy Policy Act of 2005 (P.L. 109- 58) established a renewable fuels standard (RFS). This standard requires the use of 4.0 billion gallons of renewable fuels in 2006, increasing each year to 7.5 billion gallons in 2012. Most of this requirement will likely be met with ethanol. In the United States, approximately 3.9 billion gallons of ethanol were consumed in 2005. Thus, the RFS will likely lead to a doubling of the U.S. ethanol market between 2005 and 2012. Some analysts believe that this program could have serious effects on gasoline suppliers, leading to somewhat higher fuel prices. Thus, the Environmental Protection Agency’s implementation of the program will likely be of continuing concern to Congress. Other issues of Congressional interest include support for purer blends of ethanol as an alternative to gasoline (as opposed to a gasoline blending component), promotion of ethanol vehicles and infrastructure, and imports of ethanol from foreign countries. This report supersedes CRS Report RL30369, Fuel Ethanol: Background and Public Policy Issues (available from author)

109th Congress

Climate change and greenhouse gas (GHG) emissions are a continuing issue in the 109th Congress. Bills directly addressing climate change issues range from those focused primarily on climate change research to comprehensive emissions cap-and-trade programs. Additional bills focus on GHG reporting and registries, or on power plant emissions of carbon dioxide, as part of wider controls on pollutant emissions. The bills vary in their approaches to climate change issues. This report briefly discusses the basic concepts on which these bills are based and compares major provisions of the bills in each of the following categories: climate change research, technology deployment, GHG reporting and registries, and emissions reduction programs

Analysis of Renewable Identification Numbers (RINs) in the Renewable Fuel Standard (RFS)

Report that outlines the Renewable Fuel Standard (RFS) and the current Renewable Identification Numbers (RIN) system, discusses the current market for various RINs, and outlines policy considerations to address RIN fraud going forward

109th Congress

Climate change and greenhouse gas (GHG) emissions are a continuing issue in the 109th Congress. Bills directly addressing climate change issues range from those focused primarily on climate change research to comprehensive emissions cap-and-trade programs. Additional bills focus on GHG reporting and registries, or on power plant emissions of carbon dioxide, as part of wider controls on pollutant emissions. The bills vary in their approaches to climate change issues. This report briefly discusses the basic concepts on which these bills are based and compares major provisions of the bills in each of the following categories: climate change research, technology deployment, GHG reporting and registries, and emissions reduction programs

Alternative Fuels and Advanced Technology Vehicles: Issues in Congress

This issue brief discusses the increasing attention being paid to alternative fuels and advanced technology vehicles, the proponents of which point to their potential to improve urban air quality, decrease dependence on foreign oil, and reduce greenhouse gas emissions. The brief also discusses the major barriers currently preventing widespread use of such technologies, and discusses these technologies in the particular contexts of the 2005 Gulf Coast hurricanes and the Energy Policy Act of 2005

Alternative Transportation Fuels and Vehicles: Energy, Environment, and Development Issues

This report reviews several issues relating to alternative fuels and vehicles, mainly to combat dependence on petroleum imports and reduce greenhouse gas emissions. The report discusses the advantages and drawbacks of various alternative fuels and vehicles, as well as related legislation

Ethanol Imports and the Caribbean Basin Initiative

Fuel ethanol consumption has grown significantly in the past several years. Most of the U.S. market is supplied by domestic refiners producing ethanol from American corn. However, imports do play a role, albeit small, in the U.S. market. One reason for the relatively small role is a 54-cent-per-gallon tariff on imported ethanol. This tariff offsets an economic incentive of 51 cents per gallon for the use of ethanol in gasoline. However, to promote development and stability in the Caribbean region and Central America, the Caribbean Basin Initiative (CBI) allows the imports of most products, including ethanol, duty-free

Energy Provisions of the Farm Bill: Comparison of the New Law with Previous Law and House and Senate Bills

This report provides a side-by-side comparison of the energy provisions of the new law with previously existing law, as well as the versions engrossed by the House and Senate in the 107th Congress. While the energy provisions in the House version were spread throughout the bill, the Senate version consolidated most of its energy provisions into Title IX - Energy. Both bills provided for the use of reserve land for renewable energy production. The House version also allowed for loans to farmers in response to high energy prices, while the Senate version did not

109th Congress

Climate change and greenhouse gas (GHG) emissions are a continuing issue in the 109th Congress. Bills directly addressing climate change issues range from those focused primarily on climate change research to comprehensive emissions cap-and-trade programs. Additional bills focus on GHG reporting and registries, or on power plant emissions of carbon dioxide, as part of wider controls on pollutant emissions. The bills vary in their approaches to climate change issues. This report briefly discusses the basic concepts on which these bills are based and compares major provisions of the bills in each of the following categories: climate change research, technology deployment, GHG reporting and registries, and emissions reduction programs