Energy Independence and Security Act of 2007


The Energy Independence and Security Act of 2007, originally named the Clean Energy Act of 2007, is an Act of Congress concerning the energy policy of the United States. As part of the Democratic Party's 100-Hour Plan during the 110th Congress, it was introduced in the United States House of Representatives by Representative Nick Rahall of West Virginia, along with 198 cosponsors. Even though Rahall was 1 of only 4 Democrats to oppose the final bill, it passed in the House without amendment in January 2007. When the Act was introduced in the Senate in June 2007, it was combined with Senate Bill S. 1419: Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007. This amended version passed the Senate on June 21, 2007. After further amendments and negotiation between the House and Senate, a revised bill passed both houses on December 18, 2007 and President Bush, a Republican, signed it into law on December 19, 2007, in response to his "Twenty in Ten" challenge to reduce gasoline consumption by 20% in 10 years.
The stated purpose of the act is "to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes.". House Speaker Nancy Pelosi promoted the Act as a way of lowering energy costs to consumers. The bill followed another major piece of energy legislation, the Energy Policy Act of 2005.
The bill originally sought to cut subsidies to the petroleum industry in order to promote petroleum independence and different forms of alternative energy. These tax changes were ultimately dropped after opposition in the Senate, and the final bill focused on automobile fuel economy, development of biofuels, and energy efficiency in public buildings and lighting.

Summary of legislation

The bill signed into law in December 2007 was an 822-page document changing U.S. energy policy in many areas.

Title I

Title I contains the first increase in fuel economy standards for passenger cars since 1975, and the establishment of the first efficiency standard for medium-duty and heavy-duty commercial vehicles. By the year 2020, it is estimated to save Americans a total of $22 billion and have a significant reduction in emissions equivalent to removing 28 million cars from the road. Title I is responsible for 60% of the estimated energy savings of the bill.

A. Increased Corporate Average Fuel Economy

  • Increased Corporate Average Fuel Economy standards. Automakers are required to boost fleetwide gas mileage to at least 35 mpg by the 2020 model year. This applies to all light-duty automobiles, including light trucks, but not "work trucks."
  • Manufacturers of domestically manufactured passenger automobiles must meet the average fuel economy standard of 27.5 miles per gallon or come within 92% of the standard for a given model year, the minimum standard.
  • Requires the development of standards for work trucks and commercial medium-duty and heavy-duty vehicles.
  • Manufacturers can receive credit in one vehicle class if it exceeds the CAFE standards, allowing them make up for another vehicle class that may be below standards. Credits can also be exchanged between manufacturers. There are restriction on credit trading or transferring to meet the minimum standard.

    B. Vehicle technology

  • Required vehicle technology and transportation electrification. Incentives for the development of plug-in hybrids.
  • Establishes a loan program for advancing battery technology.
  • Awards grants to automobile manufacturers to promote production of electric transportation technology
  • Establishes incentives for fleet buying of heavy-duty hybrid vehicles.

    C. Federal vehicle fleets

  • New conservation requirements for federal vehicle fleets.
  • Federal agencies cannot use light-duty or medium-duty passenger vehicles that do not meet the new low greenhouse emission standards.
  • Using 2005 as a baseline, by 2015 Federal agencies must reduce petroleum consumption by 20% and increase the use of annual alternative fuel by 10% yearly.

    Title II

Title II contains the first legislation that specifically requires the creation of biomass-based diesel fuel, which is the addition of renewable biofuels to diesel fuel. To be labeled as Biomass-based Diesel, fuel must be able to reduce emissions by 50 percent when compared to petroleum diesel. As of now, Biodiesel is the only commercial fuel that meets this requirement.

A. Renewable Fuel Standard

  • The total amount of biofuels used in the U.S. is required to be at least an amount stated in the legislation. The total target volume increases to by 2022, from mandated in 2007. The Energy Independence and Security Act further specifies that of the 2022 total must be derived from non-cornstarch products.

    B. Biofuels research and development

  • States with low cellulosic biomass ethanol production may be rewarded grants for research, development, and application of biofuel technologies.
  • Requires the Secretary of Energy to initiate studies on the use of algae as a feedstock for biofuel production, studies on the durability and performance of engines with the use of biodiesel, and studies to optimize the use of E-85 fuel in flexible fueled vehicles.

    Title III

Title III contains standards for ten appliances and equipment: residential boilers, clothes dryers, room air conditioners, clothes washers, residential water heaters, dishwashers, kitchen stove ovens, microwave ovens, and dehumidifiers. Previous national efficiency standards for covered products were made in 1987, 1988, 1992 and 2005.

A. Appliance energy efficiency

  • New efficiency standards for external power supplies, in-home appliances, electric motors, residential boilers, and heating and air conditioning equipment.

    B. Lighting energy efficiency

  • Required roughly 25 percent greater efficiency for light bulbs, phased in from 2012 through 2014. This effectively bans the manufacturing and importing of the then-common incandescent light bulbs, though by 2013 at least one company had introduced a redesigned incandescent bulb for which it claimed 50 percent greater efficiency than conventional incandescents.
  • Various specialty bulbs, including appliance bulbs, "rough service" bulbs, colored lights, plant lights, and 3-way bulbs, are exempt from these requirements as well as light bulbs currently less than 40 watts or more than 150 watts. This exempts stage lighting and landscape lighting.
  • Required roughly 200 percent greater efficiency for light bulbs, or similar energy savings, by 2020.

    Title IV

Industrial and commercial buildings are responsible for using almost half of the nation's energy and greenhouse gas emissions, costing over $200 billion each year. Title IV aims to reduce the energy used of Federal buildings by 30 percent by the year 2015.

A. Residential building efficiency

B. Commercial buildings

  • New initiatives for promoting conservation in buildings and industry.
  • Creates an Office of Commercial High Performance Green Buildings in the Department of Energy, and promotes the development of more energy efficient buildings.
  • Aims to create a nationwide zero-net-energy initiative for commercial buildings built after 2025. Buildings built before 2025 should also meet the initiative by 2050.
  • The Department of Energy is responsible for educating the public about high performance green buildings.

    C. Federal buildings

  • Requires all lighting in Federal buildings to use Energy Star products.
  • New standards and grants for promoting efficiency in government and public institutions. New and renovated federal buildings must reduce fossil fuel use by 55% by 2010, and 80% by 2020. All new federal buildings must be carbon-neutral by 2030.

    D. Industrial energy efficiency

  • The Department of Energy must research and develop ways to improve the energy efficiency of equipment and processes used in industry.
  • The Environmental Protection Agency must create a waste energy recovery program.

    E. Education

  • Provides grants to build energy efficient schools that utilize natural lighting and other energy features to states, local governments, and school systems.
  • The EPA is to study the effects energy efficient building features have on school aged children.

    F. Institutional entities

  • Creates grants in order to support energy efficiency and sustainability at public institutions

    G. Public and assisted housing

  • The Department of Housing and Urban Development must update the energy standards for public and assisted housing.

    H. General provisions

  • A $10 million fund is granted to the DOE Office of Commercial High Performance Buildings and the GSA Office of Federal High Performance Buildings to do one federal project each year for five years.
  • A $10 million fund is also provided for four projects at universities over five years.

    Other provisions

  • Repeal of liability limitations for oil companies for using methyl tertiary butyl ether to gasoline. MTBE was added to fuel both to enhance octane and reduce air pollution by acting as an oxygenate. MTBE was a large liability for gasoline producers due to leaking tanks polluting water supplies. Many states, including California, had already banned the substance.
  • The H-Prize program, which awards cash prizes for technological advances toward a hydrogen economy
  • Taxpayer funding of research and development of solar energy, geothermal energy, and marine and hydrokinetic renewable energy technologies.
  • Expanded federal research on carbon sequestration technologies.
  • Green jobs – creation of a training program for "Energy efficiency and renewable energy workers".
  • Energy transportation and infrastructure. New initiatives for highway, sea and railroad infrastructure. Creation of the Office of Climate Change and Environment in the Department of Transportation.
  • Small business energy programs, offering small businesses loans toward energy efficiency improvements.
  • Smart grid – modernization of the electricity grid to improve reliability and efficiency.
  • Pool safety – new federal standards for drain covers and pool barriers. Originally known as the Virginia Graeme Baker Pool and Spa Safety Act, eventually incorporated into this EISA Act.
  • L prize, to spur development of LED light replacements.