U.S. Energy Policy

"America must have an energy policy that plans for the future, but meets the needs of today. I believe we can develop our natural resources and protect our environment"

- President George Bush

"For too long our nation has been dependent on foreign oil. And this dependence leaves us more vulnerable to hostile regimes, and to terrorists -- who could cause huge disruptions of oil shipments, and raise the price of oil, and do great harm to our economy.

It's in our vital interest to diversify America's energy supply -- the way forward is through technology. We must continue changing the way America generates electric power, by even greater use of clean coal technology, solar and wind energy, and clean, safe nuclear power.  We need to press on with battery research for plug-in and hybrid vehicles, and expand the use of clean diesel vehicles and biodiesel fuel.  We must continue investing in new methods of producing ethanol -- - using everything from wood chips to grasses, to agricultural wastes

We made a lot of progress, thanks to good policies here in Washington and the strong response of the market. And now even more dramatic advances are within reach. Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years.  When we do that we will have cut our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East.

To reach this goal, we must increase the supply of alternative fuels, by setting a mandatory fuels standard to require 35 billion gallons of renewable and alternative fuels in 2017 -- and that is nearly five times the current target. At the same time, we need to reform and modernize fuel economy standards for cars the way we did for light trucks -- and conserve up to 8.5 billion more gallons of gasoline by 2017.

Achieving these ambitious goals will dramatically reduce our dependence on foreign oil, but it's not going to eliminate it. And so as we continue to diversify our fuel supply, we must step up domestic oil production in environmentally sensitive ways.  And to further protect America against severe disruptions to our oil supply, I ask Congress to double the current capacity of the Strategic Petroleum Reserve. 

America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change." 

.- President George Bush State of the Union Address 2007

"I made the case last night to the American people that we have got to do something about our dependence on oil -- for two reasons. One, dependence on oil provides an economic and national security risk, a problem that this country better start dealing with in a serious fashion now, before it becomes acute. And second, we've got to be wise stewards of the environment, and dependency on oil makes it harder to be wise stewards of the environment."

-- President George W. Bush
January 24, 2007

THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007

Summary

December 19, 2007

The Energy Independence and Security Act of 2007, which President Bush signed into law December 19,2007 mandates a 40 percent increase in U.S. fuel economy by 2020 and will help reduce overall U.S. dependence on oil. Taken together, the act's measures are expected to save 6 billion metric tons of CO-2 emissions, more than the Kyoto Protocol would save.

The following is a summary of the major provisions:

HIGHER VEHICLE FUEL ECONOMY STANDARDS
Average fuel economy for 2020 automobiles under 10,000 pounds sold in the United States must be at least 35 miles per gallon. (The current average figure for cars and light trucks is 25 miles per gallon.) The new fuel economy standards will reduce greenhouse gas emissions by an amount equivalent to removing 28 million of today's cars from the road.

HIGHER RENEWABLE FUEL STANDARDS
The law mandates the use of 36 billion gallons of renewable fuel (five times the level of current use) in the U.S. vehicle fuel supply by 2022. At least 60 percent of this must come from "advanced biofuels" - defined as fuels that cut greenhouse gas emissions by at least 50 percent. Such advanced biofuels could include ethanol derived from cellulosic biomass-such as wood waste, grasses, and agricultural wastes-as well as biodiesel and butanol.

NEW EFFICIENCY STANDARDS FOR LIGHT BULBS, APPLIANCES
The use of inefficient incandescent lights will be phased out. New standards for light bulbs require them to use 20-30 percent less energy by 2014. The government is required to set further standards for light bulbs that will cut their energy use at least 35 percent by 2020. New minimum efficiency standards are also set for external power supplies, residential boilers, dishwashers, dehumidifiers, electric motors, and walk-in coolers and freezers.

NEW STANDARDS FOR FEDERAL GOVERNMENT BUILDINGS
Federal buildings must cut their energy use by 30 percent by 2015. New and renovated federal buildings must significantly reduce their reliance on energy from fossil fuels.

INCREASED RENEWABLE ENERGY RESEARCH
A new Center for Geothermal Technology Transfer is to be established as well as one or more new demonstration centers for marine and hydrokinetic energy. The law also calls for new research and development programs in solar energy.

MORE SPENDING FOR RENEWABLES IN NEW APPROPRIATIONS ACT
An appropriations act signed into law in December provides $1.536 billion in direct support of the Department of Energy Office of Energy Efficiency and Renewable Energy (EERE), a 4.2 percent increase over the funds provided this past year. There are significant funding increases for hydrogen technology (up 9 percent), solar energy (up 5.7 percent), geothermal technology (400 percent!), building technologies (up 4.4 percent), industrial technologies (up 14 percent), and weatherization assistance grants (up 11 percent).

For Immediate Release
Office of the Press Secretary
December 19, 2007

Fact Sheet: Energy Independence and Security Act of 2007

President Bush joined Energy Secretary Bodman and members of Congress at a Dec. 19 DOE ceremony, signing a bipartisan energy bill to improve fuel economy and reduce oil dependence.

Today, President Bush signed the Energy Independence and Security Act of 2007, which will improve vehicle fuel economy and help reduce U.S. dependence on oil.

The bill the President signed today responds to the challenge of his bold "Twenty in Ten" initiative, which President Bush announced in January.  It represents a major step forward in expanding the production of renewable fuels, reducing our dependence on oil, and confronting global climate change.  It will increase our energy security, expand the production of renewable fuels, and make America stronger, safer, and cleaner for future generations. 

The Energy Independence and Security Act of 2007 will help reduce America's dependence on oil by:

1. 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 in 2022.  Although the President proposed a more ambitious alternative fuels standard in his State of the Union Address, the RFS in the bill he signed today represents a nearly five-fold increase over current levels.
   
   
2. Reducing 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.  Last January, the President called for the first statutory increase in fuel economy standards for automobiles since they were enacted in 1975, and the bill he signed today delivers on that request.  The bill also includes an important reform the President has called for that allows the Transportation Department 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 CAFE standards, this bill will build on progress made by the Energy Policy Act of 2005 in setting out a comprehensive energy strategy for the 21st century.  The Energy Policy Act signed by the President in August 2005 represented the first major energy security legislation in more than a decade.  The Act 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.

The Bill Signed Today Will Add To The President's Ongoing Efforts To Enhance Energy Conservation And Efficiency

The bill includes provisions to improve energy efficiency in lighting and appliances, as well as requirements for Federal agency efficiency and renewable energy use that will help reduce greenhouse gas emissions.  For example:

• The bill will require all general purpose lighting in Federal buildings to use Energy Star® products or products designated under the Energy Department's Federal Energy Management Program (FEMP) by the end of Fiscal Year 2013.
  
  
• The bill will update the Energy Policy and Conservation Act to set new appliance efficiency standards that will save Americans money and energy.  The Act amends the Energy Policy and Conservation Act (EPCA) to prescribe or revise standards affecting regional efficiency for heating and cooling products, procedures for new or amended standards, energy conservation, energy efficiency labeling for consumer electronic products, residential boiler efficiency, electric motor efficiency, and home appliances.
  
  
• The bill will establish an Office of High-Performance Green Buildings (OHPGB) in the U.S. General Services Administration.  This office will promote green building technology implementation in Federal buildings.

The Bill Responds To The President's "Twenty In Ten" Vision And Will Produce Some Of The Largest CO2 Emission Cuts In Our Nation's History

Taken together, all of these measures could reduce projected CO2 emissions by billions of metric tons.

• These results help advance the U.S. commitment at the UN climate change meeting in Bali last week to pursue quantifiable actions to reduce carbon emissions.

The President Urges Congress To Act On The Remaining Proposals From His Energy Security Agenda

We must continue changing the way America generates electric power through even greater use of cleaner coal technology, solar and wind energy, and clean, safe nuclear power. 

We must increase our domestic supply of oil in a prudent and environmentally sensitive way.  The President again urges Congress to pass legislation that opens access to domestic energy sources such as the Outer Continental Shelf and the Arctic National Wildlife Refuge.  He also asks Congress to double the current capacity of the Strategic Petroleum Reserve to protect America against disruptions to our oil supply.

U.S. Energy Overview

Credit: Energy Information Agency Official Energy Statistics from The U.S. Government

Credit: Energy Information Agency Official Energy Statistics from The U.S. Government

U.S. Petroleum Import Sources, 2005 

(%-Percentage)

Credit: Energy Information Agency Official Energy Statistics from The U.S. Government

Credit: Energy Information Agency Official Energy Statistics from The U.S. Government

U.S. Primary Energy Consumption
by Source and Sector, 2006
(quadrillion Btu)

"Without a clear, coherent energy strategy, all Americans could go through what Californians are experiencing now, or worse"

-Dick Cheney US Vice President June 2001

Energy Consumption

The 1970s oil shocks occurred when US oil imports were far lower than they are today. America now imports over half its oil compared with 34.8 percent in 1973. This level of dependence on imports (58%) is the highest in history, and will increase as The United States uses up domestic resources. The vast majority of the world's oil reserves are concentrated in the Middle East (65% to 75%), and controlled by the members of the OPEC oil cartel. The United States accounts for about 25 percent of global oil consumption but has only 3 percent of proven global oil reserves.

U.S. Oil Demand, (2006): About 20.8 million barrels per day. 55-60% of US consumption is imported at a cost of $70 billion+ per year, amounting to the largest single element of our trade deficit.

• U.S. oil consumption has risen by 12 percent since 1973, the year of the Arab oil embargo.

• U.S. oil consumption in the transportation sector (including motor vehicles, planes, and ships) has risen by 42 percent since 1973.

• Between 1973 and the present, oil imports to the United States rose -- in absolute terms -- by two thirds.

• Almost half of U.S. oil imports come from OPEC producers and a quarter comes from the unstable Persian Gulf region.

• Crude oil production in the lower 48 states peaked in 1970 and has been declining since.

• Crude oil production in Alaska's north slope peaked in 1988 and has since fallen by nearly 50 percent. (The time between the beginning and peaking in Alaskan production was a mere 10 years.)

Credit: The Whitehouse, Energy Information Administration