In light of a changing regulatory and legislative environment, concern has arisen regarding the future prospects for ethanol as a motor fuel. Ethanol is produced from biomass (mainly corn) and is mixed with gasoline to produce cleaner-burning fuel called "gasohol" or "E10." The market for fuel ethanol, which consumes 10 % of the nation's corn crop, is heavily dependent on federal subsidies and regulations. A major impetus to the use of fuel ethanol has been the exemption that it receives from the motor fuels excise tax. Ethanol is expensive relative to gasoline, but it is subject to a federal tax exemption of 5.2 cents per gallon of gasohol (or 52 cents per gallon of pure ethanol). This exemption brings the cost of pure ethanol, which is higher than that of conventional gasoline and other oxygenates, within reach of the cost of competitive substances. In addition, there are other incentives such as a small ethanol producers tax credit. It has been argued that the fuel ethanol industry could scarcely survive without these incentives. The Clean Air Act requires that ethanol or another oxygenate be mixed with gasoline in areas with excessive carbon monoxide or ozone pollution. The resulting fuels are called ...

More than one million Americans are employed in manufacturing motor vehicles, equipment and parts. But the industry has changed dramatically since the U.S. Big Three motor vehicle corporations (General Motors, Ford and Chrysler) produced the overwhelming majority of cars and light trucks sold in the United States, and directly employed more than that many people themselves.

The Energy Independence and Security Act of 2007 (EISA, P.L. 110-140), significantly expanded the renewable fuel standard (RFS) established in the Energy Policy Act of 2005 (EPAct 2005, P.L. 109-58). The RFS requires the use of 9.0 billion gallons of renewable fuel in 2008, increasing to 36 billion gallons in 2022. Further, EISA requires an increasing amount of the mandate be met with "advanced biofuels"-biofuels produced from feedstocks other than corn starch and with 50% lower lifecycle greenhouse gas emissions than petroleum fuels. Within the advanced biofuel mandate, there are specific carve-outs for cellulosic biofuels and biomass-based diesel substitutes (e.g., biodiesel).

Instituting policies to manage or reduce GHGs would likely impact different states differently. Understanding these differences may provide for a more informed debate regarding potential policy approaches. However, multiple factors play a role in determining impacts, including alternative design elements of a GHG emissions reduction program, the availability and relative cost of mitigation options, and the regulated entities' abilities to pass compliance costs on to consumers. Three primary variables drive a state's human-related greenhouse gas (GHG) emission levels: population, per capita income, and the GHG emissions intensity. GHG emissions intensity is a performance measure. In this book, GHG intensity is a measure of GHG emissions from sources within a state compared with a state's economic output (gross state product, GSP). The GHG emissions intensity driver stands apart as the main target for climate change mitigation policy, because public policy generally considers population and income growth to be socially positive. The intensity of carbon dioxide (CO2) emissions largely determines overall GHG intensity, because CO2 emissions account for 85% of the GHG emissions in the United States. As 98% of U.S. CO2 emissions are energy-related, the primary factors that shape CO2 emissions intensity are a state's energy intensity and the carbon content of its energy use. Energy intensity measures the amount of energy a state uses to generate its overall economic output (measured by its GSP). Several underlying factors may impact a state's energy intensity: a state's economic structure, personal transportation use in a state (measured in vehicle miles travelled per person), and public policies regarding energy efficiency. The carbon content of energy use in a state is determined by a state's portfolio of energy sources. States that utilise a high percentage of coal, for example, will have a relatively high carbon content of energy use, compared to states with a lower dependence on coal. An additional factor is whether a state is a net exporter or importer of electricity, because CO2 emissions are attributed to electricity-producing states, but the electricity is used (and counted) in the consuming state. Between 1990 and 2000, the United States reduced its GHG intensity by 1.6% annually. Assuming that population and per capita income continue to grow as expected, the United States would need to reduce its GHG intensity at the rate of 3% per year in order to halt the annual growth in GHG emissions. Therefore, achieving reductions (or negative growth) in GHG emissions would necessitate further declines in GHG intensity.

Over one million Americans are employed in manufacturing motor vehicles, equipment and parts. But the industry has changed dramatically since the U.S. "Big Three" motor vehicle corporations (General Motors, Ford and Chrysler) produced the overwhelming majority of cars and light trucks sold in the United States, and directly employed many people themselves. By 2003, most passenger cars sold in the U.S. market were either imported or manufactured by foreign-based producers at new North American plants (so-called "transplant" facilities). The Big Three now dominate only in light trucks, and are also now being challenged there by the foreign brands. The Big Three have shed about 600,000 U.S. jobs since 1980, while about one-quarter of Americans employed in automotive manufacturing (nearly 300,000) work for the foreign-owned companies. It is clear that the U.S. automotive industry has undergone many drastic changes that have had a net adverse effect on American interests. This book examines the causes of these changes. Congressional acts, increasingly stringent emission laws, the effects of NAFTA, labour unions and globalisation are all within the scope of this book.