Energy Independence and Security Act of 2007
Posted by benarmstrong on 1/18/2009 2:22:27 PM.
This policy was first proposed by The United States Congress.
Level of Government: National
Status: Implemented

Abstract
Background:
The 2007 Energy Bill was an omnibus legislative compromise between the House, Senate and White House. The Energy Bill was largely a creation of the Senate. The House proposed an omnibus energy package, but it failed in the Senate over its attempt to repeal tax subsidies for the oil and natural gas industries. The Senate proposal leaves the subsidies in place.
Purpose:
The 2007 Energy Bill seeks to 1) improve energy efficiency standards for individual and corporate use and 2) increase the availability of clean and renewable sources of energy.
Plans:
The Energy Bill seeks to raise fuel economy standards for cars and trucks. It sets the 2020 target for Corporate Average Fuel Economy (CAFE) standards at 35 miles per gallon for cars and light trucks. The Bill provides favorable loans and grants to those seeking to develop battery technology and plug-in hybrid vehicles. It requires federal agencies to buy only “low greenhouse gas emitting” vehicles. By 2015, federal agencies must reduce their annual petroleum consumption by 20% and increase their alternative fuel consumption by 10%.
           
The 2007 Energy Bill focuses on increasing the use of renewable fuel by promoting biofuel production. The bill authorizes grants for research and development on the production of cellulosic and other biofuels. Funds are also allocated to develop the renewable energy infrastructure (e.g. biorefineries) and flexible-fuel vehicle technology. The Bill requires the EPA to actively approve the introduction of any new fuel into the commercial marketplace.
           
The Bill outlines more stringent efficiency targets for household appliances and lighting fixtures.   It also seeks to increase efficiency in building construction. It sets a goal for buildings constructed after 2025 to have zero net emissions; buildings constructed before should be retrofitted to the same standard by 2050. The bill proposes new emissions standards for federal buildings, striving for all federal construction to be zero-emission by 2030 and for emissions to be reduced by 30% by 2015. The bill offers federal grants for the construction of energy efficient schools. It plans to research the plausibility of a photovoltaic roof on the Capitol building and allocates $30 Million to place photovoltaic cells on the roof of the Department of Energy headquarters.
           
To promote increased use of efficient energy sources at the local level, the bill creates a block grant program that offers funding for strategic planning, energy audits and consulting in select locales. Research and design funding is allotted for the investigation of geothermal sources of energy ($90 Million) and the integration of solar power technology into local energy systems. Funding and research is also allocated for wave, tide and current technologies, carbon sequestration methods and smart grid technology. A smart grid registers and communicates timely information about household energy consumption, allowing utilities and homeowners to adapt energy use appropriately.   Research will be coordinated with academic institutions and the National Academy of Sciences.
           
The 2007 Energy bill allocates resources to support international efforts to improve energy efficiency and develop alternative energy technologies. It creates The International Clean Energy Foundation, which is designed to distribute funding to clean energy projects throughout the world through grants. The bill also allocates $125 Million for job-training programs in green industries. Structurally, it affords the Secretary of Energy a place on the National Security Council, marking energy policy as a security issue as well as an economic and environmental one.
Resources:
The ultimate cost of the energy bill is unknown. Necessary funding will include billions of dollars for research and grants. Civil penalties for failure to abide by the bill’s new regulations represent a potential source of new revenue.

Policy Details

The Bill sets forth no specific overall emissions goal for the long-term, though it does set construction and fuel standards.

The fuel economy standard for cars and light trucks is set at a target of 35 miles per gallon by model year 2020.  Care manufacturers will be required to produce vehicles that reach at least 92% of the fuel economy standard beginning in model year 2011.  Manufacturers can earn credits for vehicles exceeding the standard.  Credits can be used to avoid penalties on vehicles in other classes that fall short of fuel economy requirements.  The Bill also creates a fuel economy credit market that allows manufacturers to profit from selling credits earned from exceeding fuel economy standards.  Penalties for non-compliance with the standards will be redirected to fund grants for research and development in pursuit of increasing fuel efficiency. 

The Bill makes the implementation of smart grid technology a national policy.  It organizes a committee and task force to oversee the development and institutionalization of smart grids.

The 2007 Energy Bill increases the required level of renewable fuels in the United States’ transportation energy supply.  The target levels for 2008 are increased from 5.4 to 7.5 billion gallons; the levels for 2022 are quadrupled from 9 billion to 36 billion.  Beginning in 2016, the plan requires that biofuels comprise the entire increase in renewable fuels. 

Related Links
CRS Summary of Energy Bill: The CRS report provides a compact outline of the major provisions in the energy bill.
2007 Energy Bill Full Text: Here is the entire energy bill as it was passed in 2007.

Related Articles on Pi
The Place for Ethanol? : by benarmstrong on 1/29/2009 7:59:26 AM
Abstract:
Biofuels are not the answer. Yet, the 2006 Energy Bill, among its innumerable promises and commitments, places the burden for America's energy future on biofuels.
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