In late December, President George W. Bush signed the Energy Independence and Security Act of 2007, which will help reduce U.S. dependence on oil and improve vehicle fuel economy. The bill responds to the challenge of his “20 in 10” initiative, which President Bush announced in January 2007. It represents a major step forward in expanding the production of renewable fuels, reducing U.S. dependence on oil, and confronting global climate change.
The Energy Independence and Security Act of 2007 will help reduce America’s dependence on oil by increasing the supply of alternative fuel sources by setting a mandatory Renewable Fuel Standard (RFS) requiring fuel producers to use at least 36 billion gallons of biofuel by 2022. Under previous law, the RFS was set to expand to 7.5 billion gallons by 2012. Within the expanded RFS, the measure contains specific provisions that will, for the first time, implement a renewable requirement for diesel fuel. The enactment of a renewable requirement in the diesel pool that includes biodiesel has been a top priority for the U.S. biodiesel industry.
To get a renewable component in diesel fuel, the Energy Independence and Security Act specifically requires the use of biomass-based diesel fuel, which is diesel replacement fuel that reduces greenhouse gas emissions by at least 50 percent. Biodiesel qualifies as a biomass-based diesel fuel. The usage requirement for biomass-based diesel begins at 500 million gallons in 2009 and expands to one billion gallons in 2012. Beyond 2012, a minimum of one billion gallons must be used, and the amount can be set higher by the administration of the Environmental Protection Agency, in consultation with the secretaries of the U.S. Department of Agriculture and Department of Energy.
The second provision in the energy act reduces U.S. demand for oil by setting a national fuel economy standard of 35 miles per gallon by 2020, which will increase fuel economy standards by 40 percent and save billions of gallons of fuel. The bill also includes an important reform that allows the U.S. Department of Transportation to issue “attribute-based standards,” which will ensure that increased fuel efficiency does not come at the expense of automotive safety.
By addressing renewable fuels and average fuel economy standards, this bill will build on the Energy Policy Act of 2005 in setting out a comprehensive energy strategy for the twenty-first century. Signed by President Bush in August 2005, the act represented the first major energy security legislation in more than a decade. It encourages energy conservation and efficiency by promoting residential efficiency, increasing the efficiency of appliances and commercial products, reducing federal government energy usage, modernizing domestic energy infrastructure, diversifying the nation’s energy supply with renewable sources, and supporting a new generation of energy-efficient vehicles.
February 2008 Render