Order Code RL34294
Energy Independence and Security Act of 2007:
A Summary of Major Provisions
December 21, 2007
Fred Sissine, Coordinator
Specialist in Energy Policy
Resources, Science, and Industry Division
Energy Independence and Security Act of 2007:
A Summary of Major Provisions
Summary
The Energy Independence and Security Act ( P. L. 110- 140, H. R. 6) is an
omnibus energy policy law that consists mainly of provisions designed to increase
energy efficiency and the availability of renewable energy. This report describes the
key provisions of the enacted law, summarizes the legislative action on H. R. 6, and
provides a summary of the provisions under each of the titles in the law.
The highlights of key provisions enacted into law are as follows:
! Corporate Average Fuel Economy ( CAFE). The law sets a target of
35 miles per gallon for the combined fleet of cars and light trucks by
model year 2020.
! Renewable Fuels Standard ( RFS). The law sets a modified standard
that starts at 9.0 billion gallons in 2008 and rises to 36 billion
gallons by 2022.
! Energy Efficiency Equipment Standards. The adopted bill includes
a variety of new standards for lighting and for residential and
commercial appliance equipment. The equipment includes
residential refrigerators, freezers, refrigerator- freezers, metal halide
lamps, and commercial walk- in coolers and freezers.
! Repeal of Oil and Gas Tax Incentives. The enacted law includes
repeal of two tax subsidies in order to offset the estimated cost to
implement the CAFE provision.
The two most controversial provisions of H. R. 6 that were not included in the
enacted law were the proposed Renewable Energy Portfolio Standard ( RPS) and most
of the proposed tax provisions, which included repeal of tax subsidies for oil and gas
and new incentives for energy efficiency and renewable energy.
CRS Key Policy Staff
Area of Expertise Name Telephone
Agriculture- Based Energy Randy Schnepf 7- 4277
Tom Capehart 7- 2425
Biofuels Brent Yacobucci 7- 9662
Carbon Storage Peter Folger 7- 1517
Energy Prices Robert Pirog 7- 6847
Energy Taxes Salvatore Lazzari 7- 7825
Energy- Saving Performance Contracts Anthony Andrews 7- 6843
Fuel Economy Standards Robert Bamberger 7- 7240
International Energy Jeff Logan 7- 9317
Marine Energy Nic Lane 7- 7905
Natural Gas William Hederman 7- 7738
Nuclear Energy and Loan Guarantees Mark Holt 7- 1704
Transmission and Electric Utilities Amy Abel 7- 7239
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Key Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Provisions Included . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Corporate Average Fuel Economy ( CAFE) Standards . . . . . . . . . . . . . 1
Renewable Fuel Standard ( RFS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Appliance and Lighting Efficiency Standards . . . . . . . . . . . . . . . . . . . . 1
Provisions Excluded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Renewable Energy Portfolio Standard ( RPS) . . . . . . . . . . . . . . . . . . . . 2
Energy Tax Subsidies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Brief Summary of Legislative Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Title I: Energy Security Through Improved Vehicle Fuel Economy . . . . . . . . . . 4
Subtitle A, Increased Corporate Average Fuel Economy . . . . . . . . . . . . . . . 4
Subtitle B, Improved Vehicle Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Subtitle C, Federal Vehicle Fleets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Title II: Energy Security Through Increased Production of Biofuels . . . . . . . . . . 5
Subtitle A, Renewable Fuel Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Subtitle B, Biofuels Research and Development ( R& D) . . . . . . . . . . . . . . . . 6
Subtitle C, Biofuels Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Subtitle D, Environmental Safeguards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Title III: Energy Savings Through Improved Standards for Appliances
and Lighting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Subtitle A, Appliance Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Subtitle B, Lighting Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Title IV: Energy Savings in Buildings and Industry . . . . . . . . . . . . . . . . . . . . . . . 7
Subtitle A, Residential Building Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Subtitle B, High- Performance Commercial Buildings . . . . . . . . . . . . . . . . . 7
Subtitle C, High- Performance Federal Buildings . . . . . . . . . . . . . . . . . . . . . 8
Subtitle D, Industrial Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Subtitle E, Healthy High- Performance Schools . . . . . . . . . . . . . . . . . . . . . . . 9
Subtitle F, Institutional Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Subtitle G, Public and Assisted Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Subtitle H, General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Title V: Energy Savings in Government and Public Institutions . . . . . . . . . . . . 10
Subtitle A, United States Capitol Complex . . . . . . . . . . . . . . . . . . . . . . . . . 10
Subtitle B, Energy Savings Performance Contracting . . . . . . . . . . . . . . . . . 10
Subtitle C, Energy Efficiency in Federal Agencies . . . . . . . . . . . . . . . . . . . 10
Subtitle D, Energy Efficiency of Public Institutions . . . . . . . . . . . . . . . . . . 11
Subtitle E, Energy Efficiency and Conservation Block Grants . . . . . . . . . . 11
Title VI: Accelerated Research and Development . . . . . . . . . . . . . . . . . . . . . . . 12
Subtitle A, Solar Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Subtitle B, Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Subtitle C, Marine and Hydrokinetic Renewable Energy Technologies . . . 13
Subtitle D, Energy Storage for Transportation and Electric Power . . . . . . . 13
Subtitle E, Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Title VII: Carbon Capture and Sequestration . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Subtitle A, Carbon Capture and Sequestration Research,
Development, and Demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Subtitle B, Carbon Capture and Sequestration Assessment
and Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Title VIII: Improved Management of Energy Policy . . . . . . . . . . . . . . . . . . . . . 16
Subtitle A, Management Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Subtitle B, Prohibitions on Market Manipulation and False Information . . 17
Title IX: International Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Subtitle A, Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Subtitle B, International Clean Energy Foundation . . . . . . . . . . . . . . . . . . . 17
Subtitle C, Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Title X: Green Jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Title XI: Energy Transportation and Infrastructure . . . . . . . . . . . . . . . . . . . . . . 18
Subtitle A, Department of Transportation ( DOT) . . . . . . . . . . . . . . . . . . . . 18
Subtitle B, Railroads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Subtitle C, Marine Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Subtitle D, Highways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Title XII: Small Business Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Title XIII: Smart Grid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Title XIV: Pool and Spa Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Title XV: Revenue Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Title XVI: Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Energy Independence and Security Act of
2007: A Summary of Major Provisions
Introduction
The Energy Independence and Security Act ( P. L. 110- 140, H. R. 6) is an
omnibus energy policy law that consists mainly of provisions designed to increase
energy efficiency and the availability of renewable energy. This report describes the
key provisions of the enacted law, summarizes the legislative action on H. R. 6, and
provides a summary of the provisions under each of the titles in the law.
Many analysts in the CRS Resources, Science, and Industry Division
contributed to this report; their names and contact information are located on the
back of the summary page.
Key Provisions
Provisions Included
The three key provisions enacted in P. L. 110- 140 are the Corporate Average
Fuel Economy ( CAFE) Standards, the Renewable Fuel Standard ( RFS), and the
appliance/ lighting efficiency standards.
Corporate Average Fuel Economy ( CAFE) Standards. The law sets a
target of 35 miles per gallon for the combined fleet of cars and light trucks by model
year 2020. Also, a fuel economy program is established for medium- and heavy- duty
trucks, and a separate fuel economy standard is created for work trucks. ( For more
details on issues related to the CAFE provision, see CRS Report RL33982,
Corporate Average Fuel Economy ( CAFE): A Comparison of Selected Legislation
in the 110th Congress, by Brent D. Yacobucci and Robert Bamberger, and CRS
Report RL33413, Automobile and Light Truck Fuel Economy: The CAFE Standards,
by Brent D. Yacobucci and Robert Bamberger.)
Renewable Fuel Standard ( RFS). The law sets a modified standard that
starts at 9.0 billion gallons of renewable fuel in 2008 and rises to 36 billion gallons
by 2022. Of the latter total, 21 billion gallons is required to be obtained from
cellulosic ethanol and other advanced biofuels. ( For more details on issues related
to the RFS provision, see CRS Report RL34265, Selected Issues Related to an
Expansion of the Renewable Fuel Standard ( RFS).)
Appliance and Lighting Efficiency Standards. Energy efficiency
standards are set for broad categories of incandescent lamps ( light bulbs),
CRS- 2
incandescent reflector lamps, and fluorescent lamps. A required target is set for
lighting efficiency, and energy efficiency labeling is required for consumer electronic
products. Also, efficiency standards are set by law for external power supplies,
residential clothes washers, dishwashers, dehumidifiers, refrigerators, refrigerator-freezers,
freezers, electric motors, residential boilers, commercial walk- in coolers,
and commercial walk- in freezers. Further, DOE is directed to set standards by
rulemaking for furnace fans and battery chargers.
Provisions Excluded
Two controversial provisions of H. R. 6 that were not included in the enacted
law were the proposed Renewable Energy Portfolio Standard ( RPS) and the proposed
repeal of tax subsidies for oil and gas.
Renewable Energy Portfolio Standard ( RPS). Under an RPS, retail
electricity suppliers ( electric utilities) must provide a minimum amount of electricity
from renewable energy resources or purchase tradable credits that represent an
equivalent amount of renewable energy production. The minimum requirement is
often set as a percentage share of a supplier’s total retail electricity sales. The second
degree amendment to H. R. 6 passed by the House on December 6, 2007, proposed
a national RPS target that aimed to reach 15% of total electricity sales by 2020. Up
to 4 percentage points of the 15% target could be met with energy efficiency
measures. This provision was stripped out by the Senate and was not included in the
final version of the bill. ( For more details on issues related to the RPS provision, see
CRS Report RL34116, Renewable Energy Portfolio Standard ( RPS): Background
and Debate Over a National Requirement, by Fred Sissine.)
Energy Tax Subsidies. The House- passed second degree amendment to
H. R. 6 contained provisions that would have repealed about $ 22 billion of oil and gas
subsidies that were designed to offset the cost of supporting a variety of energy
efficiency and renewable energy tax incentives. These proposed incentives would
have included a four- year extension of the renewable energy electricity production
tax credit. Most of those provisions were stripped out by the Senate and were not
included in the final bill. Enough tax revenue offsets were included to cover the
estimated cost of the CAFE provision. ( For more details about the proposed
renewable energy incentives, see CRS Report RL34162, Renewable Energy Issues
in the 110th Congress, by Fred Sissine. For more details about the proposed repeal
of oil and gas subsidies, see CRS Report RL33578, Energy Tax Policy, by Salvatore
Lazzari.)
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1 For more details about the reserve, see CRS Report RS22571, The Strategic Energy
Efficiency and Renewables Reserve in the CLEAN Energy Act of 2007 ( H. R. 6, by Fred
Sissine).
2 S. 1321 was, in turn, derived from several other Senate bills. Additional details about
legislation that was incorporated into H. R. 6 are available in CRS Report RL33831, Energy
Efficiency and Renewable Energy Legislation in the 110th Congress, by Fred Sissine, Lynn
J. Cunningham, and Mark Gurevitz.
3 More details about the House and Senate bills developed up to that point are available in
CRS Report RL34135, Omnibus Energy Efficiency and Renewable Energy Legislation: A
Side- by- Side Comparison of Major Provisions in House- Passed H. R. 3221 with Senate-
Passed H. R. 6, by Fred Sissine.
Brief Summary of Legislative Action
On January 18, 2007, the House passed the 14- page CLEAN Energy Act ( H. R.
6) by a vote of 264- 163. The bill proposed to repeal certain oil and natural gas
subsidies, thus generating revenue for an Energy Efficiency and Renewables Reserve.
The Reserve was designed to reduce foreign oil dependence and serve other
purposes. The actual uses of the reserve would have been determined at a later date
by further legislation. 1
On June 21, 2007, the Senate passed its first degree amendments to H. R. 6 as
the proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of
2007. This action transformed H. R. 6 into a 500- page omnibus energy policy bill,
with a primary focus on energy efficiency and renewable energy. The Senate’s
amendments were drawn primarily from the proposed Energy Savings Act of 2007
( S. 1321). 2 The key provisions of the Senate- passed H. R. 6 were appliance efficiency
standards, an increase of the renewable fuel standard to 36 billion gallons by 2022,
and an increase of the combined corporate average fuel economy standards to 35
miles per gallon ( mpg) by 2020.
On August 4, 2007, the House passed the omnibus energy policy bill, H. R.
3221, which had two divisions and 13 titles. Division A contained provisions of the
New Direction for Energy Independence, National Security, and Consumer
Protection Act. An adopted floor amendment ( H. Amdt. 748) added a 15% renewable
energy portfolio standard ( RPS). Division B, the Renewable Energy and Energy
Conservation Tax Act of 2007, was also added as a floor amendment and contained
the House- approved version of H. R. 2776. It added four titles to H. R. 3221 that
included a four- year extension of the renewable electricity production tax credit and
other efficiency and renewables incentives.
Because the House omnibus bill ( H. R. 3221) and the Senate omnibus bill ( H. R.
6) had different bill numbers, the bills could not be taken directly to conference
committee. 3 However, after the House completed action on H. R. 3221, informal
bipartisan negotiations over the omnibus energy bills began between the House and
Senate. Key issues included CAFE, the renewable fuel standard, the RPS provision
in H. R. 3221, and a proposed repeal of certain oil and natural gas subsidies to offset
costs for new energy efficiency and renewable energy tax incentives.
CRS- 4
4 Office of Management and Budget, Statement of Administration Policy on H. R. 6, Energy
Independence and Security Act of 2007, December 6, 2007; [ http:// www. whitehouse. gov/
omb/ legislative/ sap/ 110- 1/ hr6sap- h_ 2. pdf].
On December 6, 2007, the House passed by a vote of 235- 181 its second- degree
amendments to the Senate- passed amendments to H. R. 6. This “ second version” of
a House omnibus energy bill was derived primarily by trimming and modifying H. R.
3221 and adding major new provisions on CAFE and RFS. The House- passed bill
included a proposed increase of the CAFE standard to 35 miles per gallon by 2020
and an increase of the renewable fuel standard to 36 billion gallons per year by 2022.
The House bill also included a proposed 15% renewable electricity portfolio standard
and $ 21 billion of new tax incentives for energy efficiency and renewable energy
measures. The bill proposed to offset the new tax incentives with a repeal of about
$ 21 billion in tax subsidies for oil and natural gas.
The White House threatened to veto the House- passed bill mainly because of
the presence of provisions for an RPS and for the repeal of oil and gas tax subsidies. 4
On December 7, 2007, a Senate cloture vote on the House- passed version of H. R. 6
— with provisions for an RPS and for the repeal of oil and gas subsidies — failed
( 52- 43). After stripping out the RPS and modifying the tax package, a cloture vote
on S. Amdt. 3841 failed ( 59- 40).
On December 13, 2007, the Senate adopted S. Amdt. 3850, its second- degree
substitute amendment to H. R. 6 by a vote of 86- 8. The Senate substitute was nearly
identical to the House- passed bill, except that the RPS provision and most tax
provisions had been taken out. The House approved the Senate bill on December 18,
2007. The President signed the bill into law on December 19, 2007 ( P. L. 110- 140).
Title I: Energy Security Through Improved
Vehicle Fuel Economy
Subtitle A, Increased Corporate Average Fuel Economy
This subtitle requires an increase in CAFE standards and a restructuring of the
fuel economy program. A single CAFE standard of 35 miles per gallon ( mpg) by
MY2020 is established, and the distinction between the passenger car and light truck
fleet is preserved. The new standards will be based on vehicle attributes and
expressed in the form of a mathematical function. Interim standards will be set,
beginning with MY2011. Manufacturers will be required to come within 92% of the
standard for a given model year. However, manufacturers can earn credits for
exceeding the standards in one vehicle class that can be applied to boost, within
limitations, the CAFE of a different vehicle class that is falling short of compliance.
Additionally, credits may be sold and bought between manufacturers. CAFE credits
for the manufacture of flexible- fueled vehicles ( FFV) are retained but phased out by
MY2020. Civil penalties assessed for non- compliance will be deposited to the
general fund of the U. S. Treasury to support future rulemaking and to provide grants
to manufacturers for research and development, and retooling in support of
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increasing the fuel efficiency of their fleets. The law requires the development of
standards for “ work trucks” and commercial medium- and heavy- duty on- highway
vehicles. ( For additional information, see CRS Report RL33413, Automobile and
Light Truck Fuel Economy: The CAFE Standards, by Brent D. Yacobucci and Robert
Bamberger.)
Subtitle B, Improved Vehicle Technology
This subtitle establishes a loan guarantee program for advanced battery
development, grant programs for plug- in hybrid vehicles, incentives for purchasing
heavy- duty hybrid vehicles for fleets, and credits for various electric vehicles.
Subtitle C, Federal Vehicle Fleets
Federal agencies are prohibited from acquiring any light- duty motor vehicle or
medium- duty passenger vehicle that is not “ a low greenhouse gas emitting vehicle”
as defined in this subtitle. Alternatively, the agency may demonstrate that it has
adopted cost- effective policies to reduce its petroleum consumption sufficiently to
achieve a comparable reduction in greenhouse gas emissions. By 2015, federal
agencies are required to achieve at least a 20% reduction in annual petroleum
consumption and a 10% increase in annual alternative fuel consumption. These
increases are to be calculated from a 2005 baseline. Interim milestones will be
established and agencies will report annually on their progress. The regulations
governing this program are required to be issued not later than 18 months after
enactment.
Title II: Energy Security Through Increased
Production of Biofuels
Subtitle A, Renewable Fuel Standard
This subtitle extends and increases the renewable fuel standard ( RFS) set by
P. L. 109- 58 ( § 1501). The RFS requires minimum annual levels of renewable fuel
in U. S. transportation fuel. The previous standard was 5.4 billion gallons for 2008,
rising to 7.5 billion by 2012. The new standard starts at 9.0 billion gallons in 2008
and rises to 36 billion gallons in 2022. Starting 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 — with explicit
carve- outs for cellulosic biofuels and biomass- based diesel. The EPA Administrator
is given authority to temporarily waive part of the biofuels mandate, if it were
determined that a significant renewable feedstock disruption or other market
circumstance might occur. Renewable fuels produced from new biorefineries will
be required to reduce by at least 20% the life cycle greenhouse gas ( GHG) emissions
relative to life cycle emissions from gasoline and diesel. Fuels produced from
biorefineries that displace more than 80% of the fossil- derived processing fuels used
to operate a biofuel production facility will qualify for cash awards. Several studies
are required on the impacts of an RFS expansion on various sectors of the economy.
( For more details on issues related to the RFS proposal, see CRS Report RL34265,
CRS- 6
5 See 42 U. S. C. 7545( f).
Selected Issues Related to an Expansion of the Renewable Fuel Standard ( RFS), by
Brent D. Yacobucci and Randy Schnepf.)
Subtitle B, Biofuels Research and Development ( R& D)
This subtitle promotes research on the expansion of the use of biodiesel and
biogas as motor fuels. Grants are authorized for R& D and commercial applications
of cellulosic biofuels technologies and for the conversion of existing corn- based
ethanol plants to produce cellulosic biofuels. The Secretary of Energy is required to
report to Congress on the feasibility of algae as a feedstock for biofuels production.
The subtitle also promotes university- based R& D on biofuels.
Subtitle C, Biofuels Infrastructure
This subtitle aims to improve information about federal biofuels research
programs, focus research on infrastructure and biorefineries, study potential impacts
of increased biofuels use, and increase authorized funding for DOE biofuels research.
A funding authorization of $ 25 million is established to provide grants for biofuels
research, development, and demonstration ( RD& D) and commercial applications in
states that have low rates of ethanol production. A university- based program is
authorized to provide grants of up to $ 2 million for R& D on renewable energy
technologies. Priority is given to universities in low- income and rural communities
with proximity to trees dying of disease or insect infestation.
DOE is directed to create a grant program to help establish or convert
infrastructure to use renewable fuels, including E85 ( 85% ethanol). The Energy
Policy Act of 2005 ( EPACT, P. L. 109- 58) authorization for grants to support
cellulosic ethanol production is increased. A grant program is authorized to support
production of flexible- fueled vehicles. Studies are also required on the market
penetration of flexible- fueled vehicles, the feasibility of constructing dedicated
ethanol pipelines, the feasibility of using greater percentages of ethanol in fuel
blends, and the adequacy of railroad transportation for delivery of ethanol fuel.
Subtitle D, Environmental Safeguards
Previously, under the Clean Air Act ( § 211[ f]), no new fuels or fuel additives
could be introduced into commerce unless granted a waiver by the Environmental
Protection Agency ( EPA). If EPA did not act within 180 days of receiving a waiver
request, the waiver was treated as granted. 5 Section 251 tightens the waiver
provision. It amends the Clean Air Act to prohibit the introduction of new fuels or
fuel additives unless EPA explicitly grants a waiver. After receiving a waiver
request, EPA will now have 270 days to take final action.
CRS- 7
Title III: Energy Savings Through Improved
Standards for Appliances and Lighting
Subtitle A, Appliance Energy Efficiency
This title sets, by statute, new efficiency standards for external power supplies,
residential clothes washers, dishwashers, dehumidifiers, refrigerators,
refrigerator- freezers, freezers, electric motors, and residential boilers. DOE is
allowed to establish regional variations in standards for heating and air conditioning
equipment. DOE is required to complete a rulemaking process for furnace fans by
2013. Federal agencies are directed to purchase devices that limit standby power use.
DOE is directed to issue a final rule that sets efficiency standards for battery chargers.
Certain energy efficiency measures for walk- in coolers and walk- in freezers are set
by law. Also, several procedural changes are now in place to expedite the DOE
rulemaking process.
Subtitle B, Lighting Energy Efficiency
Section 321 sets an energy efficiency standard for general service incandescent
lamps, provides for consumer education and lamp labeling, and requires market
assessments and a consumer awareness program. Section 322 sets energy efficiency
standards for incandescent reflector lamps and fluorescent lamps. For federal
buildings, Section 323 sets energy efficiency requirements for GSA- leased space and
for use of energy efficient lighting fixtures and bulbs in those leased spaces. Section
324 sets energy efficiency standards for metal halide lamp fixtures designed to be
operated with lamps rated between 150 watts and 500 watts. Section 325 directs the
Consumer Product Safety Commission to set energy efficiency labeling requirements
for consumer electronic products.
Title IV: Energy Savings in Buildings and Industry
Subtitle A, Residential Building Efficiency
Section 411 increases the funding authorization for DOE’s Weatherization
Program, providing $ 3.75 billion over five years. Under Section 412, DOE is
directed to conduct a study of the renewable energy system rebate program described
in § 206( c) of the Energy Policy Act of 2005. The study aims to determine the
minimum funding the program would need to be viable. Further, DOE is directed to
propose an implementation plan. Section 413 requires DOE to establish energy
efficiency standards for manufactured housing.
Subtitle B, High- Performance Commercial Buildings
This subtitle encourages the development of more energy- efficient “ green”
commercial buildings. Section 421 creates an Office of Commercial High
Performance Green Buildings at DOE. Section 422 establishes a zero- energy
commercial buildings initiative. A national goal is set to achieve zero- net- energy use
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for new commercial buildings built after 2025. A further goal is to retrofit all pre-
2025 buildings to zero- net- energy use by 2050. Section 423 requires that DOE
establish a national clearinghouse for information and public outreach about high-performance
green buildings.
Subtitle C, High- Performance Federal Buildings
Section 431 requires that total energy use in federal buildings, relative to the
2005 level, be reduced 30% by 2015. Section 432 directs that federal energy
managers conduct a comprehensive energy and water evaluation for each facility at
least once every four years. For new federal buildings and major renovations,
Section 433 requires that fossil- fuel energy use — relative to the 2003 level — be
reduced 55% by 2010 and be eliminated ( 100% reduction) by 2030. Section 434
requires that each federal agency ensure that major replacements of installed
equipment ( such as heating and cooling systems), or renovation or expansion of
existing space, employ the most energy efficient designs, systems, equipment, and
controls that are life- cycle cost effective. Section 435 prohibits federal agencies from
leasing buildings that have not earned an EPA Energy Star label. Section 436
requires GSA to establish an Office of Federal High- Performance Green Buildings
to coordinate green building information and activities within GSA and with other
federal agencies. The Office must also develop standards for federal facilities,
establish green practices, review budget and life- cycle costing issues, and promote
demonstration of innovative technologies. Section 437 directs the Government
Accountability Office ( GAO) to audit the implementation of activities required under
this subtitle. The audit must cover budget, life- cycle costing, contracting, best
practices, and agency coordination. Section 438 requires federal facility development
projects with a footprint exceeding 5,000 square feet to use site planning, design,
construction, and maintenance strategies to control storm water runoff. Section 439
directs GSA to review the current use of, and design a strategy for increased use of,
cost- effective lighting, ground source heat pumps, and other technologies in GSA
facilities. Section 440 authorizes $ 4 million per year over five years to support work
under sections 434- 439 and 482. For the purpose of conducting life- cycle cost
calculations, Section 441 increases the time period from 25 years, in prior law, to 40
years.
Subtitle D, Industrial Energy Efficiency
Section 451 directs DOE to conduct research on, develop, and demonstrate new
processes, technologies, and operating practices and techniques to significantly
improve the energy efficiency of equipment and processes used by energy- intensive
industries. Section 452 directs EPA to establish a recoverable waste energy
inventory program. This program must include an ongoing survey of all major
industrial and large commercial combustion sources in the United States. EPA is
required to identify the potential for economically feasible waste energy recovery,
create a grant program to support waste energy recovery, and strengthen “ clean
energy centers” that analyze waste energy recovery. Section 453 directs DOE to
initiate a voluntary national information program for widely used data centers and
data center equipment for which there is significant potential for energy savings.
CRS- 9
DOE is also tasked with helping to devise strategies to improve energy efficiency at
these data centers.
Subtitle E, Healthy High- Performance Schools
Section 461 creates a grant program for Healthy High- Performance Schools that
aims to encourage states, local governments, and school systems to build green
schools. EPA, in consultation with the Department of Education, is allowed to
provide grants to state agencies to provide technical assistance and help with the
development of state plans for school building design. Also, EPA is directed to
develop model voluntary guidelines for school site selection. In addition to other
environmental aspects, the grants and guidelines must have a focus on energy
efficiency, natural daylighting, and other energy- related features. Section 462 directs
EPA to lead a detailed study of how sustainable building features, such as energy
efficiency, affect multiple perceived indoor environmental quality stressors on
students in K- 12 schools.
Subtitle F, Institutional Entities
Section 471 creates a program of grants and loans to support energy efficiency
and energy sustainability projects at public institutions.
Subtitle G, Public and Assisted Housing
Section 481 directs the Department of Housing and Urban Development ( HUD)
to update energy efficiency standards for all public and assisted housing.
Subtitle H, General Provisions
Section 491 calls for the DOE Office of Commercial High Performance
Buildings and the GSA Office of Federal High Performance Buildings to jointly
develop guidelines for demonstration projects. In accordance with the guidelines,
one federal project must be undertaken annually over a five- year period, supported
by a $ 10 million funding authorization. Also, a total of four projects are to be
undertaken at different universities over the five- year period, supported by an
additional $ 10 million funding authorization. Section 492 calls for these two offices
to undertake a joint survey of research on green buildings, coordinate efforts to
develop a research plan, and identify potential benefits of green buildings for
security, natural disasters, and emergency needs of the federal government. Section
493 requires EPA to create a program of competitive grants to local governments for
green building demonstration projects. Section 494 directs the Office of Commercial
High Performance Buildings and the Office of Federal High Performance Buildings
to jointly appoint a Green Building Advisory Committee with representatives from
a variety of backgrounds, including federal agencies, state and local governments,
building industry experts, security advisors, and environmental health experts.
Section 495 calls for DOE to create an advisory committee on energy efficiency
finance to help lower costs and increase investment for energy efficiency
technologies.
CRS- 10
Title V: Energy Savings in
Government and Public Institutions
Subtitle A, United States Capitol Complex
Section 501 allows the Architect of the Capitol ( AOC) to perform a feasibility
study regarding construction of a photovoltaic roof for the Rayburn House Office
Building. Under Section 502, the AOC is allowed to construct a fuel tank and
pumping system for E85 ( 85% ethanol) fuel at or within close proximity to the
Capitol Grounds Fuel Station. Section 503 requires the AOC, to the maximum
extent practicable, to include energy efficiency measures, climate change mitigation
measures, and other appropriate environmental measures in the Capitol Complex
Master Plan. Under Section 504, the AOC is directed to operate the steam boilers
and chiller plant at the Capitol Power Plant in the most energy efficient manner
possible to minimize carbon emissions and operating costs. Further, Section 505
requires the AOC to install technologies for the capture and storage or use of carbon
dioxide emitted from coal combustion in the Capitol Power Plant.
Subtitle B, Energy Savings Performance Contracting
Section 511 eliminates the advance reporting requirement for Energy Savings
Performance Contracts ( ESPCs) that have a cancellation ceiling exceeding $ 10
million. Section 512 increases ESPC funding flexibility by allowing a combination
of appropriated funds and private financing. Section 513 restricts federal agencies
from limiting the duration of ESPCs to less than 25 years or limiting the total amount
of obligations. Further, this section permits the criteria for savings verification to
satisfy the requirement for energy audits. Also, it directs federal agencies to modify
existing ESPCs to conform with the requirements of this subtitle. Section 514
permanently authorizes ESPCs.
Section 515 extends the definition of energy savings reduction to include
increased use of an existing energy source by cogeneration or heat recovery, use of
excess electrical or thermal energy generated from onsite renewable sources or
cogeneration, and increased energy- efficient use of water resources. Section 516
permits agencies to retain the full amount of energy and water cost savings obtained
from utility incentive programs. Section 517 authorizes $ 750,000 per year over five
years for a program to train contract officers in negotiating ESPCs. Section 518
directs the Department of Defense ( DOD) and DOE to study the potential use of
ESPCs in nonbuilding applications, which is defined to include vehicles and federally
owned equipment to generate electricity or transport water.
Subtitle C, Energy Efficiency in Federal Agencies
Under Section 521, GSA is directed to use up to $ 30 million — subject to
appropriation — from FY2007 and prior years’ unobligated balances of the Federal
Buildings Fund to support the installation of a solar photovoltaic system for the DOE
headquarters building in the District of Columbia. Section 522 prohibits, except
under certain circumstances, the purchase of incandescent light bulbs for use in Coast
Guard office buildings. Section 523 requires 30% of the hot water demand in new
CRS- 11
federal buildings ( and major renovations) to be met with solar hot water equipment,
provided it is life- cycle cost- effective. Section 524 encourages federal agencies to
minimize standby energy use in purchases of energy- using equipment. Section 525
requires federal procurement to focus on use of Energy Star and Federal Energy
Management Program ( FEMP)- designated products. Section 526 prohibits federal
agencies from procuring synfuel unless its life cycle GHG emissions are less than
those for conventional petroleum sources. Section 527 directs each federal agency
subject to any requirements under this title to issue an annual report that describes the
status of initiatives to improve energy efficiency, reduce energy costs, and reduce
GHG emissions. Section 528 requires the Office of Management and Budget ( OMB)
to submit an annual report to Congress that summarizes the information reported
under Section 527, evaluates overall progress toward the goals of Section 527, and
recommends additional actions needed to meet those goals. Section 529 directs the
Federal Energy Regulatory Commission ( FERC) to conduct a national assessment of
demand response, including an estimate of nationwide demand response out to a 10-
year horizon. Further, FERC is required to prepare a National Action Plan on
Demand Response, with cooperation from industry. Annual funding of $ 10 million
per year is authorized over three years.
Subtitle D, Energy Efficiency of Public Institutions
Section 531 increases annual funding authorizations for DOE’s state energy
programs. Under Section 532, electric and natural gas utilities are required to make
energy efficiency a priority resource and to integrate energy efficiency into resource
plans and planning processes. Further, the utilities are directed to modify their rates
to align their incentives with the delivery of cost- effective energy efficiency and
promote energy efficiency investments. Utilities are encouraged to consider several
policy options for achieving those goals.
Subtitle E, Energy Efficiency and Conservation Block Grants
This subtitle establishes an energy efficiency block grant program. Section 541
provides definitions of program elements. Section 542 directs DOE to establish an
energy efficiency and conservation block grant program to help reduce energy use
and emissions at the local and regional level. Section 543 establishes allocation
percentages for grants provided under this subtitle. Section 544 enumerates the
allowed purposes for the use of funds provided under this subtitle, which includes
strategic planning, consultant services, and energy audits. Section 545 provides
eligibility requirements for grants under this program, including payment of
prevailing wage rates, submission of a strategic plan, and sharing of information.
Section 546 sets criteria for minimum allocations of competitive grant funding.
Section 547 specifies that DOE may review and evaluate the performance of grant
recipients and withhold funds from those it deems have failed to achieve compliance.
To support the grant program, Section 548 authorizes $ 2 billion annually over five
years. Additional funding is authorized to cover administrative costs of the program.
Section 548 stresses that funding will supplement, not replace, funding provided by
DOE under the Weatherization and State Energy programs.
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6 Geopressured resources are geothermal deposits of hot water or steam found in
sedimentary rocks under higher than normal pressures and that are saturated with oil and
gas.
Title VI: Accelerated Research and Development
Subtitle A, Solar Energy
Section 602 aims to improve the cost and effectiveness of thermal energy
storage technologies that could improve the operation of concentrating solar power
electric generating plants. Section 603 calls for improved integration of
concentrating solar power into regional electricity transmission systems.
Subtitle B, Geothermal Energy
DOE is directed to support programs of R& D, demonstration, and commercial
application to expand the use of geothermal energy. Section 613 directs DOE to
support programs that ( 1) develop advanced prospecting tools to locate and develop
hidden geothermal resources, and ( 2) demonstrate advanced exploratory drilling
technologies and techniques with industry partners. Section 614 directs DOE to
support programs to develop components and systems necessary to develop, produce,
monitor, and model the performance of geothermal reservoirs used to produce
geothermal energy. In addition, Section 614 directs DOE to support programs that
mitigate or prevent environmental damage from geothermal energy development.
Section 615 directs DOE to support enhanced geothermal system development,
whereby geothermal reservoir systems are engineered ( as opposed to naturally
occurring systems) by creating fractures and permeable conduits via reservoir
stimulation. DOE would support R& D programs for enhanced geothermal system
technologies and for reservoir stimulation and support demonstration projects at a
minimum of four sites.
DOE is directed to establish a program of R& D, demonstration, and commercial
application for geothermal energy production from oil and gas fields and from
geopressured resources. 6 Section 616 directs DOE to implement a grant program for
at least three demonstration projects that use geothermal techniques to extract energy
from marginal, unproductive, and productive oil and gas fields. Also, DOE is
directed to establish a grant program for the recovery of energy from geopressured
resources.
Section 618 directs DOE to establish a Center for Geothermal Technology
Transfer, via a grant to an institution of higher learning or consortium thereof, that
would serve as an information clearinghouse for the geothermal industry, make data
available to the public, and coordinate R& D efforts among national and international
partners. Section 619 would rename DOE’s GeoPowering the West program as
“ GeoPowering America” and expand its geothermal technology transfer activities to
cover the entire United States. Section 620 would award a grant on a competitive
basis to an institution of higher education to establish a geothermal- powered energy
generation facility on the institution’s campus.
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7 These “ high cost” regions are defined as places where the average cost of retail power
exceeds 150% of the national average.
Section 624 directs DOE to support international geothermal energy
development through collaborative efforts to promote geothermal R& D and
deployment of geothermal technologies. Section 625 directs DOE to make grants to
eligible entities from “ high- cost regions” 7 of the United States for a feasibility study,
demonstration, and commercial application of technologies related to geothermal
energy.
Subtitle B authorizes $ 90 million annually for geothermal activities, of which
$ 10 million is designated for activities under Section 616. An additional $ 5 million
is authorized annually for the Intermountain West Geothermal Consortium, and $ 5
million is authorized annually for Section 624. All of the foregoing authorizations
are in effect from 2008 to 2012.
Subtitle C, Marine and Hydrokinetic Renewable Energy
Technologies
DOE is directed to create an R& D program focused on technology that produces
electricity from waves, tides, currents, and ocean thermal differences ( § 633). A
report to Congress is required. Further, DOE is instructed to award grants to
institutions of higher education ( or consortia thereof) to establish National Marine
Renewable Energy Research, Development, and Demonstration Centers ( § 634).
Subtitle D, Energy Storage for Transportation and Electric
Power
The U. S. Energy Storage Competitiveness Act of 2007 directs DOE to conduct
a cost- shared RD& D program to support the ability of the nation to remain globally
competitive in energy storage systems for electric drive vehicles, stationary
applications, and electricity transmission and distribution. An Energy Storage
Advisory Council will be created, with responsibility for preparing a five- year
research plan. Also, through competitive bids, DOE will establish four energy
storage research centers managed by the Office of Science. DOE is required to
conduct energy storage demonstration projects. Also, DOE is to investigate
secondary applications of energy storage equipment and to examine technologies and
processes for final recycling and disposal of energy storage equipment. After five
years of program operation, the law will require a review of the program by the
National Academy of Sciences. A total authorization of nearly $ 3 billion is provided
over a 10- year period.
Subtitle E, Miscellaneous Provisions
Section 651 directs DOE to establish an RD& D program to determine ways in
which the weight of motor vehicles could be reduced to improve fuel efficiency
without compromising passenger safety. This will focus on the development of new
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materials and on reducing the cost of lightweight materials. An $ 80 million
authorization is provided over a five- year period.
Section 652 directs DOE to report on the state of technology development for
“ advanced” insulation with an R- value greater than R35 per inch. The report is to
include an estimate of potential cost savings by applying such insulation to covered
refrigeration units. If sufficient cost savings are projected, DOE will then be directed
to conduct a cost- shared demonstration program to show actual cost savings. An $ 8
million funding authorization is provided for that program.
Section 653 changes the sulfur dioxide ( SO 2 ) criterion for clean coal power
plants from a percentage basis ( 99% of SO 2 removed) to a weight- by- energy basis ( no
more than 0.04 pounds of SO 2 per million Btu).
Section 654 on the “ H- Prize” directs DOE to conduct a competitive program to
award cash prizes to advance R& D, demonstration, and commercial application of
hydrogen energy technologies. Prizes can be a mix of federal appropriations and
funds provided by an entity that DOE chooses to administer the program. The
program sunsets in 2018. Prize categories include technology advancements in
hydrogen production, storage, distribution, and use; prototypes of hydrogen vehicles
and products; and technologies that “ transform” distribution or production. DOE is
required to report to Congress annually, identifying award recipients, technologies
developed, and specific actions undertaken to commercialize the technologies. More
than $ 1 billion is authorized over a 10- year period.
Section 655 directs DOE to create the “ Bright Tomorrow” lighting prizes for
solid state ( LED) lighting developments that achieve targeted levels of energy
efficiency and other traits. Two specific categories are a solid state replacement for
a 60- watt incandescent light and a replacement for the PAR Type 38 halogen light.
Also, a prize is established for a “ twenty- first century lamp” that achieves certain
output, efficiency, and color targets. After the awards are made, DOE is required to
develop guidelines for federal agency purchases of the incandescent and halogen
replacements, with the goal of complete replacement within five years.
Section 656 directs DOE to establish a cost- shared Renewable Energy
Innovation Manufacturing Partnership Program to make awards to support RD& D
on advanced manufacturing processes, materials, and infrastructure for renewable
energy technologies. Further goals are to increase domestic renewable energy
production and better coordinate federal, state, and private resources through
partnerships. Solar, wind, biomass, geothermal, energy storage, and fuel cell systems
are eligible forms of equipment.
CRS- 15
Title VII: Carbon Capture and Sequestration
Subtitle A, Carbon Capture and Sequestration Research,
Development, and Demonstration
DOE’s program for carbon capture and sequestration R& D is expanded and will
include large- scale demonstration projects. DOE is directed to engage the National
Academy of Sciences ( NAS) to conduct a review of the program. DOE is directed
to work with the NAS to develop interdisciplinary graduate degree programs with
emphasis on geologic sequestration science. A university- based R& D grant program
will be established to study carbon capture and sequestration using various types of
coal. EPA is directed to assess potential impacts of carbon sequestration on public
health and safety and the environment. Further, injection and sequestration activities
under this subtitle are subject to the requirements of the Safe Drinking Water Act.
Subtitle B, Carbon Capture and Sequestration
Assessment and Framework
Section 711 directs the Department of the Interior ( DOI) to develop a
methodology for an assessment of the national potential for geologic storage of
carbon dioxide. Following publication of the methodology, DOI will be required to
complete an assessment of national capacity for carbon dioxide storage in accordance
with the methodology.
Section 712 directs DOI to develop a methodology for an assessment of the total
capacity of ecosystems to sequester carbon and the ability of ecosystems to reduce
emissions of carbon dioxide, methane, and nitrous oxides in ecosystems through
management practices. Following publication of the methodology, DOI will be
required to complete a national assessment of the quantity of carbon stored in and
released from ecosystems, and the annual flux of carbon dioxide, methane, and
nitrous oxides in and out of ecosystems.
Section 713 calls for DOI to maintain records, and an inventory, of the quantity
of carbon dioxide stored within federal mineral leaseholds.
Section 714 directs DOI to submit a report on a recommended regulatory
framework for managing geologic carbon sequestration on public lands. The report
must include an assessment of options to ensure that the United States receives fair
market value for the use of public land, the proposed procedures for public review
and comment, procedures for protecting natural and cultural resources of the public
land overlying the geologic sequestration sites, a description of the status of liability
issues related to the storage of carbon dioxide in public land, identification of legal
and regulatory issues for cases where the United States owns title to the mineral
resources but not the overlying land, identification of issues related to carbon dioxide
pipeline rights- of- way, and recommendations for additional legislation that may be
required for adequate public land management and leasing to accommodate geologic
sequestration of carbon dioxide and pipeline rights- of- way.
CRS- 16
Title VIII: Improved Management of Energy Policy
Subtitle A, Management Improvements
Section 801 directs DOE to conduct a 10- year national media campaign to
educate consumers to save energy and reduce oil use. Competitive bidding is
required for contracting the media services. A funding authorization of $ 5 million
per year is provided for five years. An annual report to Congress is required.
Section 802 authorizes the Federal Coordinator for the Alaska Natural Gas
Transportation Projects to appoint and terminate personnel and to pay appointed and
temporary personnel up to a maximum of the level III rate of the Executive Schedule.
The Federal Coordinator is granted authority to establish various payment
requirements and to use funds raised without further appropriation. This authority
does not affect the authority of the Secretary of the Interior.
Section 803 creates a 50% matching grant program for constructing small
renewable energy projects that will have an electrical generation capacity less than
15 megawatts. Eligible applicants include local governments, utilities, and Indian
tribes. Such sums as necessary are authorized for the program.
Section 804 requires the Energy Information Administration ( EIA) to monitor
planned petroleum refinery outages and report to the Secretary of Energy when such
outages are affecting the price or availability of petroleum products. The Secretary
will then be required to share data with refinery operators and encourage reductions
in out- of- service refinery capacity.
Section 805 requires the Administrator of the Energy Information
Administration ( EIA) to develop a five- year plan for enhancing the scope, quality,
and timeliness of the agency’s data collection efforts. In addition, it requires closer
coordination by EIA with state energy officials and with the Federal Energy
Regulatory Commission. The section addresses state- level data in several respects
and requires the Administrator to submit to Congress within a year an assessment of
state level energy data needs. EIA is directed to revisit certain data series that had
been terminated due to budget constraints and to identify data gaps that may have
resulted from those terminations. To implement this section, $ 10 million is
authorized for 2008, and additional sums are authorized through 2012.
Section 806 expresses the sense of Congress that there is a national goal to use
renewable energy resources from agricultural, forestry, and working lands of the
nation to provide at least 25% of the nation’s energy use by 2025.
Section 807 directs the Department of the Interior’s U. S. Geological Survey to
conduct a comprehensive assessment of geothermal energy resources in the United
States and report the findings of that assessment to Congress.
CRS- 17
Subtitle B, Prohibitions on Market Manipulation
and False Information
This subtitle prohibits crude oil and petroleum product wholesalers from using
any technique to manipulate the market or provide false information. The law directs
the Federal Trade Commission to treat such action as an unfair or deceptive practice,
subject to civil penalties of not more than $ 1 million per incident.
Title IX: International Energy Programs
This title authorizes assistance to promote clean and efficient energy
technologies in foreign countries, and it establishes an International Clean Energy
Foundation.
Subtitle A, Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
The U. S. Agency for International Development ( USAID) is directed to report
to Congress on efforts to support policies for clean and efficient energy technologies.
The Department of Commerce is directed to increase efforts to export such
technologies and report to Congress on the results. Other U. S. agencies with export
promotion responsibilities are required to increase efforts to support these
technologies. Also, a multi- agency Task Force on International Cooperation for
Clean and Efficient Energy Technologies is created to support the implementation
of clean energy markets in key developing countries.
Section 917 creates a U. S.- Israel Energy Cooperation partnership to support
research, development, and deployment ( RD& D) of energy efficiency and renewable
energy measures.
Subtitle B, International Clean Energy Foundation
The Foundation is established with the long- term goal of reducing GHG
emissions. It is directed to use the funds authorized by this subtitle to make grants
to promote projects outside of the United States that serve as models of how to
reduce emissions. An annual report to Congress is required.
Subtitle C, Miscellaneous Provisions
Section 931 calls for the Secretary of State to ensure that energy security is
integrated into the core mission of the Department of State. Energy advisors are
required at key embassies, and the Department is required to report to Congress every
two years on its energy- related activities. Section 932 adds the Secretary of Energy
to the National Security Council. Section 933 calls for the President to submit to
Congress a comprehensive annual report that describes a national energy security
strategy for the nation.
CRS- 18
Section 934 implements the Convention on Supplementary Compensation for
Nuclear Damage that was opened for signature in 1997. The convention has since
been signed by the United States and 12 other countries but has not yet entered into
force. Each party to the convention will be required to establish a compensation
system within its borders for nuclear damages to the public. In the United States, this
obligation will be fulfilled by the existing Price- Anderson Act ( § 170 of the Atomic
Energy Act of 1954). The convention will also establish a second tier of damage
compensation to be paid by all parties. Section 934 requires the U. S. contribution to
the second tier to be paid by suppliers of nuclear equipment and services, under a
formula to be developed by DOE. Supporters of the convention contend that it will
help U. S. exporters of nuclear technology by establishing a predictable international
liability system.
Section 935 has the stated purpose of improving national energy security by
promoting anti- corruption initiatives in oil and natural gas rich countries and of
improving global energy security by promoting programs such as the Extractive
Industries Transparency Initiative ( EITI) that aim to increase transparency and
accountability into extractive resource payments. The sense of Congress is expressed
that global energy security should be furthered by encouraging further participation
in EITI by eligible countries and companies and by promoting the effectiveness of
the EITI program by ensuring that a robust and candid review mechanism is put in
place. The Secretary of State is required to report to Congress on progress made in
promoting transparency in extractive industries resource payments. An authorization
of $ 3 million is provided to support U. S. contributions to the Multi- Donor Trust
Fund of EITI.
Title X: Green Jobs
This title authorizes up to $ 125 million in funding to establish national and state
job training programs, administered by the Department of Labor, to help address job
shortages that are impairing growth in green industries, such as energy efficient
buildings and construction, renewable electric power, energy efficient vehicles, and
biofuels development.
Title XI: Energy Transportation and Infrastructure
Subtitle A, Department of Transportation ( DOT)
An Office of Climate Change and Environment is established at DOT to plan,
coordinate, and implement strategies to reduce transportation- related energy use,
mitigate the effects of climate change, and address the impact of climate change on
transportation systems and infrastructure.
Subtitle B, Railroads
This subtitle directs DOT, in coordination with EPA, to establish and conduct
a pilot grant program to assist railroad carriers in purchasing hybrid locomotives,
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8 This is the definition offered in Section 1122. Also, see the definition provided in Short
Sea Shipping: Practices, Opportunities, and Challenges, by Gary A. Lombardo,
[ http:// www. insourceaudit. com/ WhitePapers/ Short_ Sea_ Shipping. asp].
including hybrid switch locomotives, in order to demonstrate the extent to which
such locomotives increase fuel economy, reduce emissions, and lower costs of
operation. Also, DOT is directed to create a program of capital grants for the
rehabilitation, preservation, or improvement of railroad track ( including roadbed,
bridges, and related track structures) of class II and class III railroads.
Subtitle C, Marine Transportation
Short sea transportation is defined as commercial waterborne transportation that
originates at a port in the United States and ends at another port in the United States
or at a port in Canada located in the Great Lakes Saint Lawrence Seaway System.
The same definition applies for the case where origination and end points are
reversed. 8 This subtitle directs DOT to establish a short sea transportation program
and designate short sea transportation projects to be conducted under the program to
mitigate landside congestion. Short sea shipping activities are made eligible for
support from DOT’s capital construction fund. A report to Congress on the short sea
transportation program is required.
Subtitle D, Highways
Section 1131 increases the federal share for congestion mitigation and air
quality ( CMAQ) projects up to 100% of project or program cost. Under Section
1132, DOT is directed to redistribute within each state any unobligated balances of
the Highway Trust Fund that are rescinded in FY2008 or FY2009. Section 1133
expresses a sense of Congress that, in constructing new roadways or rehabilitating
existing facilities, state and local governments should employ policies designed to
accommodate all users, including motorists, pedestrians, cyclists, transit riders, and
people of all ages and abilities.
Title XII: Small Business Energy Programs
Loans, grants, and debentures are established to help small businesses develop,
invest in, and purchase energy efficient buildings, fixtures, equipment, and
technology. Section 1201 empowers the Small Business Administration ( SBA) to
make “ express” loans for certain energy efficiency and renewable energy projects.
Section 1202 creates a two- year pilot loan program for purchasing energy efficient
technologies under Section 7( a) of the Small Business Act at half the cost that would
have otherwise been required. After the pilot program terminates, GAO is required
to prepare a report to Congress that describes its energy- saving impact. Section 1203
creates small business energy efficiency, sustainability, and telecommuting programs.
Reports to Congress are required for each of those programs. Section 1204 raises the
Small Business Investment Act ( SBIA) loan ceilings for certain energy efficiency and
renewable energy projects undertaken by small businesses. Section 1205 enables
qualified small business investment companies to issue energy- saving debentures.
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9 The Smart Grid could allow appliances to be turned off during periods of high electrical
demand and cost and give customers real- time information on constantly changing electric
rates. The goal is to use advanced, information- based technologies to increase power grid
efficiency, reliability, and flexibility, and reduce the rate at which additional electric utility
infrastructure needs to be built.
Section 1206 expands certain SBIA provisions to include investments in energy-saving
small businesses. Section 1207 creates a Renewable Fuel Capital Investment
( RFCI) pilot program that taps into venture capital to help small firms develop
renewable energy sources and new technologies. A funding authorization of $ 30
million is provided for RFCI over two years. Section 1208 requires SBA to study the
RFCI program and issue a report to Congress on its findings.
Title XIII: Smart Grid
Section 1301 establishes a federal policy to modernize the electric utility
transmission and distribution system to maintain reliability and infrastructure
protection. The term “ Smart Grid” refers to a distribution system that allows for flow
of information from a customer’s meter in two directions: both inside the house to
thermostats, appliances, and other devices, and from the house back to the utility. 9
Smart Grid is defined to include a variety of operational and energy measures —
including smart meters, smart appliances, renewable energy resources, and energy
efficiency resources. Section 1302 calls for DOE to report to Congress on the
deployment of Smart Grid technologies and any barriers to deployment. Section
1303 directs DOE to establish a Smart Grid Advisory Committee and a Smart Grid
Task Force to assist with implementation. Section 1304 directs DOE to conduct
Smart Grid RD& D and to develop measurement strategies to assess energy savings
and other aspects of implementation. Section 1305 directs the National Institute of
Standards and Technology to establish protocols and standards to increase the
flexibility of use for Smart Grid equipment and systems. Section 1306 directs DOE
to create a program that reimburses 20% of qualifying Smart Grid investments.
Section 1307 directs states to encourage utilities to employ Smart Grid technology
and allows utilities to recover Smart Grid investments through rates. Section 1308
requires DOE to prepare a report to Congress on the effect of private wire laws on
the development of combined heat and power facilities. Section 1309 directs DOE
to report to Congress on the potential impacts of Smart Grid deployment on the
security of electricity infrastructure and operating capability. ( For additional
information, see CRS Report RL34288, Smart Grid Provisions in H. R. 6, 110th
Congress, by Amy Abel.)
Title XIV: Pool and Spa Safety
Section 1401 identifies this title as the “ Virginia Graeme Baker Pool and Spa
Safety Act.” Section 1402 finds that proper use of barriers or fencing could
substantially reduce the number of childhood residential swimming and pool
drownings. Section 1403 provides several definitions employed throughout this
subtitle. Section 1404 sets an industry standard ( ASME/ ANSI A112.19.8) as a
CRS- 21
national performance standard for swimming pool and spa drain cover equipment.
Section 1405 establishes a grant program and requires that at least 50% of the
funding be used to assist states in hiring and training enforcement personnel to
implement and enforce standards. The remaining funds must be used to educate pool
construction and installation companies, pool owners and operators, and pool service
companies, about the standard. Also, funding of $ 2 million per year over two years
is authorized for the federal Consumer Product Safety Commission to implement the
grant program. Section 1406 specifies minimum state law requirements to qualify
for a grant under Section 1405. The requirement includes the enclosure of all
outdoor residential pools and spas, installation of devices to prevent entrapment by
pool or spa drains, and notification to pool owners about entrapment protection
standards. Also, in setting minimum state law requirements, the Commission is
directed to consider current or revised national standards for barrier and entrapment
equipment, and to ensure that the requirements are consistent with the Commission’s
existing publications on pool safety guidelines. Section 1407 directs the Commission
to conduct a public education program on methods to prevent drowning and
entrapment in swimming pools. A funding authorization of $ 5 million per year is
provided over five years. Section 1408 directs the Commission to submit a report to
Congress that evaluates the implementation of the state grant program.
Title XV: Revenue Provisions
Section 1500 specifies that, unless expressed otherwise, all tax provisions in this
act refer to provisions of the Internal Revenue Code of 1986.
Section 1501 extends Federal Unemployment Tax Act ( FUTA) taxes for one
year. FUTA imposes a 6.2% gross tax rate on the first $ 7,000 paid annually by
covered employers to each employee. In 1976, Congress passed a temporary surtax
of 0.2% of taxable wages to be added to the permanent FUTA tax rate. The
temporary surtax was subsequently extended through 2007. The President’s FY2008
Budget had proposed extending the FUTA surtax. The Treasury Department stated
that “ extending the surtax will support the continued solvency of the federal
unemployment trust funds and maintain the ability of the unemployment system to
adjust to any economic downturns.” This section enacts the President’s proposal for
one year, 2008. This provision is estimated to raise $ 1.446 billion over 10 calendar
years.
Under Section 1502, the geological and geophysical costs of a major integrated
oil company will be amortized ( deducted proportionally) over a seven- year period
instead of the current five- year period. ( A major integrated oil company is defined
as one with an average world production of at least 500,000 barrels per day, with
2005 gross receipts exceeding $ 1 billion, and which has at least a 15% interest in
refinery operations.)
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Title XVI: Effective Date
Section 1601 specifies that this act and the amendments it makes will take effect
one day after enactment.