On August 10, 2005, President Bush signed into law the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) [15]. The act includes authorization for a multitude of transportation infrastructure projects, establishes highway safety provisions, provides for R&D, and includes a large number of miscellaneous provisions related to transportation, most of which are not included in AEO2006 because their energy impacts are vague or undefined. Section 11113, which provides a volumetric excise tax credit of 50 cents per gallon for alternative fuels, such as liquid fuels derived from the Fischer-Tropsch process, is included in AEO2006. This tax credit is expected to have a small impact on transportation energy consumption, because it is scheduled to expire on September 30, 2009, and only a small quantity of alternative fuels will be produced in the pilot or demonstration projects that are expected to qualify for the credit.

[15]For the complete text of SAFETEA-LU, Public Law 109-59, see web site http://frwebgate.access.gpo.gov/ cgi-bin/getdoc.cgi?dbname=109_cong_public_laws& docid=f:publ059.109.pdf.

Contact: Sean Hill
Phone: 202-586-4247
E-mail: sean.hill@eia.doe.gov