WASHINGTON, D.C. – The Energy Information Administration (EIA) has released a midterm forecast and analysis of the U.S. energy supply, demand, and prices through 2030. The report cited the impact of the Energy Policy Act of 2005 regarding the increased production and consumption of alternative fuels such as ethanol, biodiesel, and coal-to-liquids and the increased production of nuclear power and renewable energy.

Ethanol use is projected to grow from 4 billion gallons in 2005 to 11.2 billion gallons in 2012 and 14.6 billion gallons in 2030. This standard far exceeds the Renewable Fuel Standard enacted as a part of the energy bill. Ethanol-related provisions and requirements in the bill help spur investment in ethanol production and the creation of American jobs.

Alternative sources of distillate fuel are projected to grow to more than 7 percent of the total distillate pool by 2030 when consumption of biodiesel reaches 0.4 billion gallons and distillate produced from coal-to-liquids reaches 5.7 gallons. The consumption of biodiesel is supported by tax credits in EPACT2005. The production of coal to liquid fuels is encouraged by the loan guarantees in the energy bill for clean technologies.

Sales of flex-fuel vehicles, which are capable of using gasoline and E-85, are projected to reach 2 million per year in 2030. Unconventional vehicle technologies, including cars powered by electricity, fuel cells, or hydrogen, are projected to account for almost 28 percent of projected total new light-duty vehicles sales in 2030, up from just over 8 percent in 2005. In Jan. 2006, EPACT2005 replaced the tax deduction for buying hybrid cars with a much more generous tax credit, giving consumers a greater incentive to buy fuel-efficient cars.