In another end-of-session effort to complete large legislative packages, Congress rallied to pass the Energy Independence and Security Act of 2007 (P.L. 110-140), which was signed into law on December 19, 2007. Primary components of the enacted legislation include a 40-percent increase in corporate fuel economy standards and a new mandate to increase significantly the use of biofuels.

While initially conceived to make sweeping changes to the nation's energy policy, compromises were required to ensure final passage and White House support of the bill. Stripped from the bill prior to its passage were provisions promoted by several conservation organizations to ensure better review of the impacts of oil and gas development on fish and wildlife before issuing drilling permits, reports the Wildlife Management Institute.

The new law is largely focused on energy efficiency and promoting renewable fuel sources, particularly ethanol, and supports the development of infrastructure for renewable fuel-refueling stations. The bill will require the use of 36 billion gallons of ethanol and other renewable fuels by 2022, roughly five times the current mandate. Eventually 21 billion gallons will have to come from cellulosic ethanol and other "advanced" biofuels that create less than half the greenhouse gas emissions. The increased demand for ethanol is causing a loss of conservation lands as growers look to till these protected lands (see related story). Cellulosic ethanol from biomass, including switchgrass, could alleviate some of this pressure.

One of the biggest changes in policy was the increase of corporate average fuel economy (CAFE) standards to 35 miles per gallon by 2020. Supported by many environmental organizations for decades, the fuel economy increase is expected to reduce U.S. consumption by 1.1 million barrels per day when fully implemented. Current CAFE standards for cars are 27.5 miles per gallon (mpg) and 22.2 mpg for light trucks and sport-utility vehicles. Other provisions include expediting new energy efficiency standards and goals, promoting efficient appliances and lighting?including the phase out of inefficient incandescent lights?and encouraging construction of high-performance green buildings.

End-of-session negotiations that ultimately allowed the bill to be approved resulted in several renewable energy and tax provisions that were left on the cutting room floor. A provision designed to adjust the deadlines for processing drilling permits, to allow for a more reasonable amount of time to assess fully the impacts on fish and wildlife, was dropped. Also eliminated was language that would have required utilities to generate 15 percent of their electricity from cleaner sources, such as the sun and wind, by 2020.

Of particular disappointment to the House of Representatives' Natural Resources Chairman Nick Rahall, was loss of the tax title that would have repealed billions of dollars in oil industry tax and royalty incentives. The tax title was removed after failing to receive the necessary 60 votes in the Senate to avoid a filibuster. "We had done a lot to do away with the royalty-free leases, the tax holidays and giveaways and extra benefits to the big oil industry that had been granted over the last five or six years, and that was all wiped out," Rahall said in an interview. Chairman Rahall ultimately voted against the bill.

Leading Democrats say they will move quickly in the new session to pass legislation that includes the tax and renewable energy provisions. "Exactly how that [will be] done, I don't know at this point, but I think the renewable electricity standard was a significant tool to try and encourage development of renewable energy technologies, and we need to continue with our effort to enact that," stated Senate Energy and Natural Resources Committee Chairman Jeff Bingaman. (jas)