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Energy Independence and Security Act of 2007

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The Energy Independence and Security Act of 2007 (EISA), an energy policy bill, included provisions to improve fuel economy, increase renewable fuel production and raise energy efficiency standards for a variety of lighting equipment and appliances. In December 2007, the 110th United States Congress approved EISA and President George W. Bush signed it into law.[1][2]

Background

Fuel economy standards were first implemented with the Energy Policy and Conservation Act of 1975 (EPCA). Renewable fuel standards were imposed by the Energy Policy Act of 2005. According to the Congressional Research Service, the act was "spurred by rising energy prices and growing dependence on foreign oil" and "shaped by competing concerns about energy security, environmental quality, and economic growth." At the time of the bill's enactment, crude oil prices had recently hit an all-time high of $63 per barrel and the price of gasoline had risen to $2.339 per gallon. In 2005, the U.S. imported 58 percent of its oil. Furthermore, the U.S. Energy Information Administration predicted at the time that the nation would be importing 68 percent of its oil by 2025.[3][4][5][6][7]

Legislative history

DocumentIcon.jpg See bill: Energy Independence and Security Act of 2007

Energy Independence and Security Act of 2007
Seal of the United States Congress.svg
United States Congress
Legislative history
Introduced: January 12, 2007 (introduced in the United States House of Representatives)
House vote: 264-163; January 18, 2007
235-181; December 6, 2007; House agreed to Senate amendments and made further amendments
314-100; December 18, 2007; House agreed to Senate amendment
Senate vote: 65-27 (approved with amendments); June 21, 2007
86-8; December 13, 2007; Senate agreed to House amendments and made a further amendment
President: George W. Bush
Signed: December 19, 2007

Representative Nick Rahall (D-West Virginia), joined by 198 cosponsors, introduced H.R. 6 in the United States House of Representatives on January 12, 2007. The House approved the legislation on January 18, 2007. The United States Senate made substantial amendments to the legislation on June 21, 2007. The House approved a comparable bill (H.R. 3221) on August 4, 2007. The House and Senate bills (H.R. 3221 and H.R. 6, respectively) could not be taken to conference committee because they had different bill numbers. Nonetheless, the House and Senate began informal negotiations to reconcile the differences in the proposals. On December 6, 2007, the House made further amendments to H.R. 6 and returned the bill to the Senate. On December 18, 2007, by a vote of 86-8, the Senate agreed to the House amendments and made an additional amendment. The House agreed to the Senate amendment on December 18, 2007 by a vote of 314-100. President George W. Bush signed H.R. 6 (EISA) into law on December 19, 2007.[1][8]

In remarks delivered at the EISA signing ceremony, President Bush said the following:[9]

“ Today we make a major step with the Energy Independence and Security Act. We make a major step toward reducing our dependence on oil, confronting global climate change, expanding the production of renewable fuels, and giving future generations of our country a nation that is stronger, cleaner, and more secure.[10] ”
—President George W. Bush

Key features

Fuel economy standards

See also: Energy Policy and Conservation Act of 1975

Corporate Average Fuel Economy (CAFE) standards were established by the Energy Policy and Conservation Act of 1975 (EPCA). These standards mandated the average fuel economy (weighted by sales) that an auto manufacturer's fleet were required meet. CAFE standards were first implemented for cars produced in model year 1978 (i.e., cars manufactured in calendar year 1977). Between 1990 and 2010, CAFE standards remained at 27.5 miles per gallon.[1][11]

EISA increased CAFE standards, setting a single standard of 35 miles per gallon to be met by model year 2020. The act set interim standards beginning in model year 2011. According to the Congressional Research Service, EISA required auto manufacturers to "come within 92 percent of the standard for a given model year."[1]

The table below details CAFE standards for passenger cars from 1978 through 2013.

Renewable fuel standards

The Energy Policy Act of 2005 (EPCA) mandated that transportation fuel sold in the U.S. contain greater amounts of renewable fuels. EISA raised the renewable fuel standard (RFS) created by EPCA. EISA established that in 2008, the nation's transportation fuel had to contain nine billion gallons of renewable fuels. By 2022, this amount was set to increase to 36 billion gallons. Further, beginning in 2016, "all of the increase in the RFS target must be met with advanced biofuels, defined as cellulosic ethanol and other biofuels derived from feedstock other than corn starch."[1]

Energy efficiency standards

EISA set new energy efficiency standards for several types of appliances, including external power supplies, residential clothes washers, dishwashers, dehumidifiers, refrigerators, freezers, and electric motors. In addition, the act established an energy efficiency standard for several types of lights. The lighting energy efficiency standards were phased in between 2012 and 2014 and mandated that light bulbs use roughly 25 percent less energy. The act also limited the manufacture or import of inefficient light bulbs (such as traditional incandescent bulbs).[1][12]

Budget impact

According to the Congressional Budget Office, EISA was projected to decrease direct spending by $85 million from 2008 to 2017. During the same period, the law was projected to decrease revenues by $33 million and future deficits by $52 million. The table below details budget impacts by fiscal year.[13]

Estimated budget impact ($ in millions)
Fiscal year Estimated outlays Total changes in revenues Change in deficit or surplus1
2008 64 1,016 -952
2009 74 264 -190
2010 151 -342 493
2011 129 -41 170
2012 164 79 85
2013 41 43 -2
2014 -140 -35 -105
2015 -211 -149 -62
2016 -345 -321 -24
2017 -12 -546 534
2008-2012 582 976 -394
2008-2017 -85 -33 -52
1"Negative numbers indicate a reduction in the deficit (or an increase in the surplus); positive numbers indicate the opposite."[13]
Source: Congressional Budget Office, "H.R. 6 - Cost Estimate," February 12, 2008

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Congressional Research Service, "Energy Independence and Security Act of 2007: A Summary of Major Provisions," December 21, 2007
  2. ↑ U.S. Environmental Protection Agency, "Summary of the Energy Independence and Security Act," accessed August 25, 2014
  3. ↑ U.S. Senate Committee on Energy and Natural Resources, "History," accessed August 1, 2014
  4. ↑ U.S. Department of State Office of the Historian, "Oil Embargo, 1973-1974," accessed August 1, 2014
  5. ↑ National Public Radio, "The 1973 Arab Oil Embargo: The Old Rules No Longer Apply," October 16, 2013
  6. ↑ Congressional Research Service, "Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions," March 8, 2006
  7. ↑ The Washington Post, "Bush Signs Energy Bill, Cheers Steps Toward Self-Sufficiency," August 9, 2005
  8. ↑ The Library of Congress, "Bill Summary and Status - 110th Congress (2007-2008) - H.R. 6 - Major Congressional Actions," accessed August 25, 2014
  9. ↑ The American Presidency Project, "George W. Bush - Remarks on Signing the Energy Independence and Security Act of 2007," December 19, 2007
  10. ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  11. ↑ Union of Concerned Scientists, "Fuel Economy Basics," accessed August 1, 2014
  12. ↑ U.S. Department of Energy, "New Lighting Standards Began in 2012," July 28, 2014
  13. ↑ 13.0 13.1 Congressional Budget Office, "H.R. 6 - Cost Estimate," February 12, 2008
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