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Legislation that includes tax credits for plug-in electric vehicles has passed the Senate. Now the House gets a chance to look things over and put it to a vote. The tax credits allow buyers of PHEVs to receive a credit as high as $7,500 and as low as $2,500 depending on the capacity of the vehicle’s battery. Toyota had raised concerns that the bill focused solely on battery capacity, as its currently announced hybrid plans do not include anything that would approach the maximum credit. In fact, the Chevy Volt sits alone as the only product that has enough battery capacity for the top tier. Chrysler’s recently shown electric vehicles would theoretically qualify if they ever see the light of day.

Once 250,000 qualifying PHEVs are sold, the credits begin to get smaller until they go away completely. At this point, the legislation — and the vehicles — have a long way to go before anybody could actually purchasing a qualifying car, but the framework is now in place.

Last December, President Bush signed a new energy bill into law that requires automakers to achieve a Corporate Average Fuel Economy standard of 35 mpg by 2020. This historic stiffening of CAFE standards set a lofty goal, but left plenty of time to get there and new standards of any kind won’t begin until the 2011 model year. Today, which happens to be Earth Day, U.S. Transportation Secretary Mary E. Peters laid out the first set of new CAFE rules that will be implemented for passenger vehicles and light trucks from 2011 through 2015.

The first step on the path to 35 mpg by 2020 will be increases of 4.5% in CAFE standards for passenger vehicles and light trucks over the five-year period spanning 2011 and 2015. This means that standards for passenger vehicles will rise from the current 27.5 mpg to 35.7 mpg by 2015, while light trucks will go from 23.5 mpg to 28.6 mpg. The NHTSA claims the new interim standards will save 55 billion gallons of gasoline and reduce carbon dioxide emissions by 521 million metric tons. They also claim that drivers will save $100 billion in fuel costs over the lifetime of vehicles that fall under the rule.

We decided to reach out to the Big 3 automakers in the U.S. to ask for a comment, and both Ford and Chrysler are keeping mum until they’ve had a chance to read over the new rules. General Motors, meanwhile, already released a statement reiterating what it said last December, which is that it will meet the new standards despite how tough they are.

Automakers are also able to earn credits when they happen to exceed the CAFE standards, and can either bank those for a time when they won’t meet them or even sell the credits to other automakers at a cost below what the fine would be for not meeting the standards. We’ve heard rumors, for instance, that Honda’s sitting on a healthy pile of credits.

Now that we have an actual CAFE target for the auto industry to hit in the near term, expect to see a flurry of activity from automakers. Lithium-ion plug-in hybrids, series hybrids, diesels and all-electric cars will likely be the new technologies that help the industry meet these new interim CAFE standards by 2015, and the first change set for 2011 is not far away at all.

[Source: NHTSA]