On June 21, 2007, the Senate
passed H.R. 6, the Renewable Fuels, Consumer Protection, and Energy
Efficiency Act of 2007, which will enhance energy efficiency, increase
production of clean domestic biofuels, raise fuel economy standards, punish price
gougers, and achieve reductions in greenhouse gas emissions. This
landmark legislation will reduce our dependence on oil, improve our energy
security, and save consumers and taxpayers money on their energy bills.
Unfortunately, Senate Republicans blocked two key provisions that would have
made the bill even stronger: a national renewable electricity standard and tax
incentives for clean, homegrown energy and energy efficiency.
Ramp up biofuels production and infrastructure. H.R. 6 sets annual requirements for the amount of renewable fuels used in
motor vehicles and for other purposes. The expanded renewable fuels
standard (RFS) requires 8.5 billion gallons of renewable fuels in 2008 and
progressively increases to a 36 billion gallon requirement by 2022.
Biofuels will be required to emit 20 percent fewer lifecycle carbon emissions
compared to gasoline, and the bill includes protections to ensure that
increased use of biofuels will not harm our air or water quality. Beginning
in 2016, an increasing portion of renewable fuels must be advanced biofuels,
which include cellulosic ethanol, biobutanol, and other fuels derived from
unconventional biomass feedstocks. The required amount of advanced
biofuels begins at 3 billion gallons in 2016 and increases to 21 billion
gallons in 2022. The legislation also promotes investment in renewable
fuels infrastructure and supports research and development of new bioenergy
sources.
Reduce dependence on oil and prevent supply disruptions. H.R. 6 sets aggressive targets to reduce our consumption of
oil. The legislation requires a 35 percent, or 9.4 million barrel per
day, reduction in oil consumption by 2030. The Office of Management and
Budget (OMB) is required to identify any existing legal authority to achieve
the oil savings. OMB and various federal agencies must provide periodic
updates on their progress in achieving the goals. Also, refineries will
be required to report planned outages for maintenance to prevent gasoline
supply disruptions and skyrocketing gas prices as motorists saw this
spring. Finally, the bill amends antitrust law to allow the United States
to sue the Organization of Petroleum Exporting Countries (OPEC) as an illegal
oil-exporting and producing cartel.
Promote advanced vehicles and vehicle technologies. H.R. 6 authorizes research and development programs at the
Department of Energy (DOE) in the use of light-weight materials such as
advanced carbon composites and light-weight steel alloys in the construction of
vehicles and on energy storage and advanced battery development for vehicles
and electricity transmission. The bill also authorizes loan guarantees
for facilities to manufacture parts for fuel-efficient vehicles and authorizes
awards to manufacturers and suppliers for 30 percent of qualified investment
for incremental costs incurred to re-equip, expand, or establish a
manufacturing facility to produce advanced technology vehicles. The
Secretary of Transportation is required to implement an action plan to ensure that
the sale of alternative fuel vehicles reaches at least 50 percent in
2015. Finally, the bill expands research and development of electric
drive transportation technology, requires the DOE and Environmental Protection
Agency (EPA) to examine the management of the electricity grid as a source of
power for the transportation sector, and clarifies that fleet operators can
choose electric drive transportation technologies including hybrid electric
vehicles to comply with fleet acquisition requirements currently in federal
law.
Increase energy efficiency. H.R. 6 enacts consensus efficiency standards for residential
boilers, dishwashers, clothes washers, dehumidifiers, and electric motors The bill also requires rulemaking for efficiency
standards for refrigerators by 2010 and for furnace and boiler fans by the end
of 2014. The legislation enacts efficiency standards for certain lighting
products. It provides the Department of Energy with expedited rulemaking
authority and increased flexibility to issue energy efficiency standards that
maximize energy savings and direct the Federal Trade Commission (FTC) to
develop, through a rulemaking, Energy Guide labels for televisions, computer
monitors, and other consumer electronics product categories. The bill also
authorizes loans for renewable energy systems and energy efficiency projects
for small businesses and establishes a small business energy efficiency
program.
Invest in carbon capture and storage technology. Carbon capture and sequestration, which is a key
technology in helping to reduce U.S.
greenhouse gas emissions, may hold particular promise in reducing pollutants
from power plants, since they produce an estimated one-third of U.S. carbon
dioxide emissions from fossil fuels.
H.R. 6 expands and improves
the DOE’s existing research in this area and requires a national assessment of
capacity to sequester carbon.
Make the government a leader in cutting energy
consumption and reducing greenhouse gas emissions. H.R. 6
requires the General Services Administration (GSA) to reduce operating costs in
its buildings by 20 percent in no less than five years by implementing measures
to increase energy efficiency and to replace inefficient lighting. The Alliance to Save Energy
has said this bill would “establish the federal government as a successful
model for others to emulate and complement rather than compete with existing
funding and activities.” H.R. 6
codifies the Administration’s stated goal of reducing petroleum usage by the
federal government by 30 percent by 2015. This will save taxpayers’
money; in Fiscal Year 2005, the federal government spent almost $9 billion on
vehicles, fuels and equipment—more than 60 percent of the total federal energy
bill. The bill also requires the federal government to increase its
purchases of renewable electricity to 10 percent by 2010 and 15 percent by
2015. In addition, the legislation creates a new competitive grant
demonstration program to reduce the emissions of carbon dioxide and other
pollutants from the Capitol power plant.
Increase fuel economy. H.R. 6 increases fuel economy to 35 miles per gallon by 2020 and includes
passenger cars and light trucks in the fleet average. After 2020, fuel
economy must improve at the maximum feasible rate each year. H.R. 6
also requires fuel economy standards for medium duty and heavy duty trucks,
which do not currently have standards, to increase at the maximum feasible
rate. Finally, the bill offers grants for service station owners to
install pumps for E85 and other biofuels.
Make price gouging a punishable federal crime.
H.R. 6 makes gasoline price-gouging
a federal crime, enhances federal authority to prevent and prosecute
manipulation of fuel supplies and anti-competitive behavior, and increases the
transparency of petroleum markets. These actions will protect consumers
from manipulative practices like those used by Enron to gouge electricity consumers
in the western United States
during 2000 and 2001.
Position the United
States as a world leader on global energy security.
H.R. 6 puts the United States
back on the world stage as a leader in preventing and preparing for energy
crises. The legislation expresses the Sense of Congress that the
President should work with foreign governments, particularly governments with
high or rapidly growing energy consumption, to establish strategic energy
partnerships and crisis response mechanisms. The President should also
establish a regional-based ministerial Hemisphere Energy Response Forum to
develop and implement energy crisis, sustainability, and development
initiatives. The bill also provides for the development and coordination
of a comprehensive and integrated research program that assists the people of
the United States
and the world to understand, assess, and predict human-induced and natural
processes of abrupt climate change.
Republicans blocked a national Renewable Electricity
Standard (RES). Republicans
blocked a vote on an amendment introduced by Senator Bingaman and others to require utilities to purchase 15 percent of
their electricity from renewable energy sources including wind, solar, biomass,
and geothermal by 2020. A national RES would promote domestically
produced, clean energy; reduce U.S.
greenhouse gas emissions; reduce energy costs for American consumers and
businesses; and create American jobs. An analysis by the Union of
Concerned Scientists found that a 15 percent RES would: save residential
consumers $3.3 billion in electricity and natural gas costs through 2030; save
all sectors $16.3 billion in electricity and natural gas costs through 2030;
and reduce carbon dioxide emissions by nearly 200 million tons per year by
2020. The amendment had the support of a majority of the Senate; 50
Senators sent a letter to the Chairman and Ranking Member of the Energy
Committee on April 30, 2007 expressing their support for a strong national RES.
(Union of Concerned Scientists, May 2007)
Republicans blocked tax credits to boost renewable
electricity and renewable fuels.
A majority of Republicans voted to block a final vote on bipartisan legislation
reported from the Finance Committee extending tax credits to spur the
production of renewable electricity, renewable fuels, alternative fuel
infrastructure, and advanced technology vehicles. The reported legislation
would have also extended incentives for clean renewable energy bonds,
residential energy efficiency and renewable energy investments, and clean
coal. By a vote of 57-36, most Republicans voted to continue tax breaks
for Big Oil companies, who made $120 billion in profits last year, rather than
direct that funding toward consumers and producers of clean, homegrown energy,
energy efficient homes and products, and advanced alternative fuel vehicles.
