Energy Independence and Security Act of 2007: Summary of Provisions

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 Energy Independence and Security Act of 2007 was signed into law on December 19, 2007, and became Public Law 110-140 [8]. Provisions in EISA2007 that require funding appropriations to be implemented, whose impact is highly uncertain, or that require further specification by Federal agencies or Congress are not included in AEO2008.

For example, EIA does not try to anticipate policy responses to the many studies required by EISA2007, nor to predict the impact of research and development (R&D) funding authorizations included in the bill. Moreover, AEO2008 does not include any provision that addresses a level of detail beyond that modeled in NEMS, which was used to develop the AEO2008 projections.

AEO2008 addresses only those provisions in EISA2007 that establish specific tax credits, incentives, or standards, including the following:

• RFS requirements for the use of 36 billion gallons of ethanol per year by 2022, with corn ethanol limited to 15 billion gallons. Any other ethanol or biodiesel may be used to fulfill the balance of the mandate, but the balance must include 16 billion gallons per year of cellulosic ethanol by 2022 and 5 billion gallons per year of biodiesel by 2012.

• A new CAFE standard for LDVs (cars and light trucks) of 35 mpg by 2020. The Act also specifies that vehicle attribute-based standards are to be developed separately for cars and light trucks.

• A CAFE credit and transfer program among manufacturers and across a manufacturer’s fleet. • Extension through 2019 of the CAFE credits specified under the AMFA. EISA2007 reduces the maximum credit by 0.2 mpg for each model year after 2014 and phases it out entirely by model year 2020.

• Appliance energy efficiency standards for boilers, dehumidifiers, dishwashers, clothes washers, external power supplies, and commercial walk-in coolers and freezers. • Lighting energy efficiency standards for generalservice incandescent lighting in 2012 and sooner for general-service tubular fluorescent lighting and metal halide lamp fixtures.

• Standards for industrial electric motor efficiency, requiring industrial motors of various sizes to meet the NEMA premium motor efficiency standards.

• Standards for energy use in Federal buildings, requiring a 30-percent reduction by 2015. The following discussion provides a summary of the EISA2007 provisions included in AEO2008 and some of the provisions that could be included if more complete information were available about their funding and implementation. This discussion is not a complete summary of all the sections of EISA2007. More extensive summaries are available from other sources.

8. For the complete text of the Energy Independence and Security Act of 2007, see web site public_laws&docid=f:publ140.110.pdf. 9.

See, for example, web site public/_files/HR6EnergyBillSummary.pdf.

Contact: Paul Holtberg
Phone: 202-586-1284


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