Energy Independence and Security Act of 2007

Summary: The Energy Independence and Security Act (EISA) of 2007 is a comprehensive U.S. energy law comprising a variety of innovative measures to address energy security.

In December 2007, U.S. president George W. Bush signed into law the Energy Independence and Security Act (EISA). It comprises a variety of innovative measures to address energy security and, to a lesser degree, climate change. Most prominently, the law directed U.S. automobile manufacturers to significantly increase the Corporate Average Fuel Economy (CAFE) standards for several vehicle classes.

Since the turn of the century, rising energy prices and growing concerns over climate change had invigorated the debate over a new comprehensive energy policy in the United States. While addressing climate policy gathered pace only slowly in Congress, energy security was addressed more proactively. After several years of debate, Congress finally agreed on the Energy Policy Act of 2005. The law was negotiated while the Republican Party held the majority in both the House and the Senate and basically followed President Bush’s focus on increasing domestic production of fossil fuels and advancing nuclear energy technology. The EISA of 2007 deviated from this previous course, introducing significant changes to energy policy only two years later. The EISA was initiated after the midterm elections of November 2006 by the new Democratic majority in Congress.

The House version of the bill included, among other measures, a variety of tax provisions as well as a renewable portfolio standard (RPS). The former, totaling about $21 billion, were designed to repeal tax subsidies for oil and gas companies and promote renewable energy sources. The latter would have obliged electricity-producing companies to derive a certain percentage of their electricity supply from renewable sources. The RPS and most of the envisaged tax provisions, however, were not included in the final version of the bill because of the resistance of Senate Republicans and the threat of a veto by the president.

The final bill did, nevertheless, include several new provisions aimed at decreasing U.S. demand for nonrenewable sources of energy. Most important, the EISA of 2007 modified the U.S. CAFE standards in several ways. CAFE standards had originally been established as a reaction to the oil crisis of 1973. In 2007, the standard was 27.5 miles per gallon (mpg) for passenger cars and 22.2 mpg for light trucks. The distinction between passenger cars and light trucks had created a loophole for a class of vehicles designated as sport utility vehicles (SUVs) and minivans, which had been designed so they were regulated under the light truck standard.

Furthermore, some SUVs were not regulated at all, because they exceeded the light truck upper gross vehicle weight limit of 8,500 pounds. The growing popularity of such vehicles had actually decreased the overall average U.S. fuel economy in the years preceding the legislation. The EISA aimed at narrowing the SUV loophole. It stipulated that the combined fuel economy average for passenger cars and light trucks be raised to 35 mpg by 2020. Moreover, it directed the administration to regulate, for the first time, work trucks and commercial medium-duty or heavy-duty on-highway vehicles.

The EISA also substantially increased the renewable fuel standard (RFS), compared to the provisions included in the Energy Policy Act of 2005. Following passage of the 2007 law, the minimum amount of renewable fuels to be used in the transportation sector was set at 9 billion gallons in 2008 and was to be increased to 36 billion gallons by 2022. This standard is to be met, to an increasing degree, by advanced biofuels such as cellulosic ethanol. Although such advanced fuels comprised only a small fraction of the overall standard in 2008, the 2022 level will have to include 21 billion gallons of such fuels. Moreover, the act prescribes specific minimum life-cycle reductions in greenhouse gas (GHG) emissions from renewable fuels. These minimum reductions are calculated as the difference from traditional fossil fuels’ emissions and range from 20 percent for traditional biofuels to 60 percent for cellulosic ethanol. This latter provision was included in the final version of the bill despite the disapproval of the president.

Several other titles in EISA cover other areas of energy efficiency. The act establishes appliance and lighting efficiency standards. It sets a goal for achieving zero-net-energy use for commercial buildings by 2025. Several provisions target the energy efficiency of federal agencies and raising consumer awareness. Moreover, efforts to promote carbon capture and sequestration (CCS) technologies, designed to store energy-related greenhouse gases, are expanded.

Bibliography

Attenberg, Roger H., ed. Global Energy Security. New York: Nova Science Publishers, 2009.

Heath, Garvin A. Life Cycle Assessment of the Energy Independence and Security Act of 2007. Golden, CO: National Renewable Energy Laboratory, 2009.

Kaplan, Stan Mark. Smart Grid: Modernizing Electric Power Transmission and Distribution; Energy Independence, Storage and Security; Energy Independence and Security Act of 2007 (EISA); Improving Electrical Grid Efficiency, Communication, Reliability, and Resiliency; Integrating New and Renewable Energy Sources. Alexandria, VA: TheCapitol.Net, 2009.

Sissine, Fred, coordinator. “Energy Independence and Security Act of 2007: A Summary of Major Provisions, CRS Report for Congress.” December 21, 2007. http://energy.senate.gov/public/‗files/R1342941.pdf.