Wednesday, December 26, 2007

Energy Independence and Security Act 2007

Energy Independence and Security Act (Wikipedia)

Clean Energy Act of 2007
From Wikipedia, the free encyclopedia
The Energy Independence and Security Act of 2007, originally named the CLEAN Energy Act of 2007(H.R. 6) was a bill introduced in the House of Representatives by Democrats as part of their 100-Hour Plan for the actions they took during the first 100 business hours of the 110th Congress.[1] Sponsored by RepresentativeNick Rahall of West Virginia and cosponsored by 198 other representatives, it passed in the House without amendment in January 2007 and an amended version[2] passed the Senate on 2007-06-21.[3]
The stated purpose of the act is “[t]o reduce our Nation’s dependency on foreign oil by investing in clean,renewable, and alternative energy resources, promoting new emerging technologies, developing greater efficiency, and creating a Strategic Energy Efficiency and Renewables Reserve to invest in alternative energy, and for other purposes.”[4]. It primarily seeks to cut subsidies to the petroleum industry in order to promote petroleum independence and different forms of alternative energy.
A revised bill passed both houses and was signed into law on December 19, 2007.
Contents [hide]
1 Provisions of the act
2 Support for the bill
3 Opposition to the bill
4 Status
4.1 Senate action on revised version
5 References
6 External links

[edit]Provisions of the act
Title I of the original bill, the “Ending Subsidies for Big Oil Act of 2007,” denies certain tax deductions to producers of oil, natural gas, or primary products of oil or natural gas, and increases from five to seven years the period during which five major integrated oil companies must write off their expenditures on geological and geophysicalstudies related to oil exploration.
Title II, the “Royalty Relief for American Consumers Act of 2007,” addresses an oversight that occurred when theInterior Department issued oil and gas leases for off-shore drilling in the Gulf of Mexico in 1998 and 1999. The leases didn’t include price thresholds that require companies to pay royalties to the Federal Government when the price of oil and gas exceeds a certain level. These companies will be required to renegotiate their leases to include price thresholds that are equal or less than thresholds described in the Outer Continental Shelf Lands Act. Companies who do not renegotiate their leases or pay the fees will not be allowed to obtain any oil or gas leases in the Gulf of Mexico.

A solar trough array is an example of green energy.
Title II also repeals several provisions of the Energy Policy Act of 2005. One provision suspended royalty fees on oil and gas production in certain waters of the Gulf of Mexico. A provision of the Energy Policy Act that protects drilling permit applicants from additional fees to recover the cost of processing paperwork is also repealed, and special policies for leases in the National Petroleum Reserve–Alaska and royalty relief for specific offshore drilling in Alaska will be discontinued.
Title III of the bill creates a Strategic Energy Efficiency and Renewables Reserve, an account to hold additional money received by the Federal Government as a result of the enactment of the act, and to offset the cost of subsequent legislation.

[edit]Support for the bill
The majority of the support for this proposed bill are Representatives that are from the Democratic party. Speaker of the House Nancy Pelosi gave an idea about the bill after it passed in the House of Representatives. She described the vote as “the first step toward a future of energy independence.” Moira Chapin, Environment CaliforniaFederal Field Organizer, said “… the 110th Congress made a down payment on a new energy future,” referring to is the investment in a renewable energy resource coming from solar and wind power generation facilities.[1] The House passed their version of the bill 264-163 while the Senate version passed 65-27.
Proponents also say the act provides an incentive for the purchase of energy-efficient appliances, buildings, and other equipment. A new energy alternative also adds to the future of energy by enabling more people to buy hybrid vehicles. New energy resources will create new industry, creating more jobs and helping to reduce American dependency on oil imports. Investing in an alternate energy resource could create as many as 3.3 million new jobs and could cut the amount of unemployment, add $1.4 trillion to the gross national product in our economy, and pay for itself within ten years.[1] Air quality will be improved by reducing the amount of emissions released by using a cleaner energy source other than oil.
Another supporter of the bill, Representative Steve Rothman of New Jersey, said that if the proposed bill passes, “the U.S. can improve air quality, create jobs, and corner a new business market.”[5]

[edit]Opposition to the bill
Opponents argue that the act will “increase Americans reliance on foreign sources of energy by making new domestic exploration and production more costly" and state that markets should drive U.S. energy policy. They are concerned that the Strategic Energy Efficiency and Renewables Reserve could be used for “politically-connectedpet projects,” citing a similar fund created by the Carter administration that went bankrupt after only a few years.[6]
The U.S. Chamber of Commerce says that the bill punishes an industry that has made many Americans wealthy for generations, adding that “Congress and various Administrations have perhaps imposed more regulations on the oil and gas industry than any other industry in the United States.” The Chamber says it supports the rapid development of alternative fuels but that the new technologies are not developed enough, and are insufficient to make any real difference. It believes more regulation on oil and gas producers is not the answer to the energy problem.[7]
Conservative activist and president of Americans for Tax Reform Grover Norquist characterizes the bill’s provisions regarding renegotiation of leases as a violation of binding contracts, calling the bill “a violation of the Taxpayer Protection Pledge” since it doesn’t create tax cuts to offset the additional revenue it would raise.[6]
Representative Ted Poe says the bill “will decrease U.S. exploration and will increase our dependence on foreign oil,” and goes on to say, “by raising taxes and fees on oil and gas companies that choose to manufacture in America, the U.S. will become a less attractive place to produce oil and natural gas. This essentially creates incentives for foreign importation and could kill manufacturing jobs in an industry that employs nearly 1.8 million Americans.”[1]
Opponents included Democratic Senators Claire McCaskill, Mary Landrieu, Carl Levin, and Debbie Stabenow. House Democratic opponents were John Barrow and Jim Marshall of Georgia, Nick Lampson of Texas, and Dan Boren of Oklahoma

[edit]Status
The bill has passed both houses of Congress, but the Senate version was different than the House version. The Senate voted to increase automobile emission standards, but removed Title I of the bill, which would have raised taxes on oil producers by an estimated US$32 billion.[8] Instead of resolving differences in conference committee, a separate bill, H.R. 3221 was passed by the House and introduced in the Senate. In December a new version of H.R. 6 was passed by the House and sent to the Senate. The bill has been renamed the "Energy Independence and Security Act of 2007".[9][10]

[edit]Senate action on revised version
On December 13, 2007 the Senate passed a revised version of the bill by a vote of 86 - 8.The final version increased fuel efficiency standards to 35 mpg by 2020, increased energy efficiency standards for appliances and buildings, and set a mandate for the vastly expanded use of ethanol and other biofuels. The bill also included $1.46 billion in increases in revenue to offset the estimated $2 billion that would be lost to gasoline taxes because of the improved automobile gasoline mileage.[11]
The earlier version of the bill with $13 billion raised from the oil industry, a mandate that utilities rely on renewable energy for at least 15 percent of their power generation, and a $21.8 billion 10-year tax package failed by a one vote margin. A final attempt the end debate and make way for a vote failed by 59 - 40 despite the return of four Democratic presidential candidates, Hillary Clinton (NY), Barack Obama (Ill.), Christopher Dodd (Conn.), andJoseph Biden (Del.). Nine Republicans voted in favor of ending debate while one Democrat, Sen. Mary Landrieu (D-La.) voted against it. Sen. John McCain was not present.[11]
The failed vote to end debate came after the White House and Sen. Domenici warned that Bush would veto the bill because of the tax portion. Senate Minority Leader Mitch McConnell (R-Ky.) said Democrats had "shown how to snatch defeat from the jaws of victory" by "inserting an enormous tax hike, a tax hike they knew would doom this legislation." Reid said Congress should not be intimidated by a veto threat, "We are the Congress of the United States. We can write things even though the president may not like them." Democrats said that the tax measure was modest and only took back tax breaks the oil companies received in 2004 and that they did not need them with oil prices at about $90 a barrel.[11]

Energy Security Act

H.R. 6 would reduce our Nation's dependency on foreign oil by investing in clean, renewable, and alternative energy resources, promoting new emerging energy technologies, developing greater efficiency, and creating a Strategic Energy Efficiency and Renewables Reserve to invest in alternative energy.

Detailed Summary

Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 - Title I: Biofuels for Energy Security and Transportation - Biofuels for Energy Security and Transportation Act of 2007 - Subtitle A: Renewable Fuel Standard - (Sec. 111) Directs the President to promulgate regulations to ensure that motor vehicle fuel and home heating oil sold or introduced into commerce in the United States on an annual average basis, contains the applicable volume of renewable fuel determined in accordance with a specified calendar year schedule for 2008-2022.

Requires the President also to: (1) implement a credit program to manage the renewable fuel requirement; and (2) establish criteria for a system of voluntary labeling of renewable fuels based on life cycle greenhouse gas emissions. Requires the Secretary of Energy to arrange with the National Academy of Sciences to assess for Congress the impact of the renewable fuel standard.

Directs the Administrator of the Energy Information Administration to study renewable fuel blending to determine where there are excessive seasonal variations in the use of renewable fuel. Requires the President, if such study finds a certain deficiency in the quantity of renewable fuel necessary to meet renewable fuel program requirements, to promulgate regulations to ensure that 25% or more of such quantity is used during each of the two periods: (1) of April through September; and (2) of January through March and October through December.

(Sec. 112) Directs the President to provide a credit to the owner of a facility that uses renewable energy to displace more than 90 % of the fossil fuel normally used in the production of renewable fuel.

(Sec. 113) Expresses the sense of Congress that it is the goal of the United States that the agricultural, forestry, and working land of the United States should by January 1, 2025: (1) provide from renewable resources at least 25 % of the total energy consumed in the United States; and (2) continue to produce safe, abundant, and affordable food, feed, and fiber.

Subtitle B: Renewable Fuels Infrastructure - (Sec. 121) Instructs the Secretary to establish a competitive grant pilot program to establish refueling infrastructure corridors for gasoline blends containing specified ratios of renewable fuel or diesel fuel.

(Sec. 122) Amends the Energy Policy Act of 2005 to: (1) increase funding for bioenergy research and development; (2) direct the Secretary to establish bioresearch centers that target biofuels; and (3) authorize loan guarantees for renewable fuel facilities.

(Sec. 125) Directs the Secretary to provide grants to: (1) eligible entities to research, develop, and implement renewable fuel production technologies in states with low rates of ethanol (including cellulosic biomass ethanol) production; and (2) Indian tribal and local governments and other eligible entities to promote the development of infrastructure to support the separation, production, processing, and transportation of biomass to local biorefineries, including by portable processing equipment.

(Sec. 127) Directs the Secretary to establish a biorefinery information center.

(Sec. 128) Directs the Secretary and the Director of the National Institute of Standards and Technology jointly to establish and make available to the public: (1) a database that describes the physical properties of different types of alternative fuel; and (2) standard reference materials for different types of alternative fuel.

(Sec. 129) Amends the Energy Policy Act of 1992 to require clear labeling of the fuel tank cap of each U.S.-manufactured alternative fueled vehicle stating that such vehicle can operate on alternative fuel, beginning with model year 2010.

(Sec. 130) Requires the Secretary to report to Congress on any research and development challenges inherent in increasing to 5% the proportion of diesel fuel sold in the United States that is biodiesel.

Requires the President to promulgate regulations: (1) providing for the uniform labeling of biodiesel blends certified to meet applicable standards published by the American Society for Testing and Materials; and (2) ensuring that each diesel-equivalent fuel derived from renewable biomass and introduced into interstate commerce is tested and certified to comply with such standards.

(Sec. 131) Directs the Secretary of Agriculture to make transitional assistance payments to an agricultural producer during the first year in which the producer devotes land to the production of a qualified cellulosic crop.

(Sec. 132) Instructs the President to establish a grants program for low-carbon fuel research. Authorizes appropriations for FY2009-FY2013.

Subtitle C: Studies - (Sec. 141) Requires studies regarding advanced biofuels technologies, including: (1) increased consumption of ethanol-blended gasoline with higher levels of ethanol; (2) feasibility of the construction of dedicated ethanol pipelines; (3) flexible fueled vehicles to operate using E-85 fuel; (4) the feasibility of issuing credits to electric vehicles powered by electricity produced from renewable energy sources; (5) the effects of the use of biodiesel on engine durability; (6) financial incentives for the biofuels industry; (7) streamlined lifecycle analysis tools for the evaluation of renewable carbon content of biofuels; (8) the effects of ethanol-blended gasoline on off-road vehicles and recreational boats; and (9) offshore wind resources.

(Sec. 150) Authorizes appropriations for the offshore wind resources study.

Subtitle D: Environmental Safeguards - (Sec. 161) Directs the Secretary to establish a grant program to encourage advanced biofuels production. Authorizes appropriations for FY2008-FY2015.

(Sec. 162) Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency (EPA) to: (1) offer to enter into arrangements with an independent research institute to conduct studies on the effects of increased domestic use of renewable fuels under this Act; and (2) complete a study to determine whether the renewable fuel volumes required by EPA will adversely impact air quality as a result of changes in vehicle and engine emissions of air pollutants.

Title II: Energy Efficiency Promotion - Energy Efficiency Promotion Act of 2007 - Subtitle A: Promoting Advanced Lighting Technologies - (Sec. 211) Amends the National Energy Conservation Policy Act to require all general purpose lighting in federal buildings by the end of FTY2013 to be Energy Star products or products designated under the Federal Energy Management Program.

(Sec. 212) Exempts from current standards certain incandescent reflector lamps.

(Sec. 213) Directs the Secretary to establish and award Bright Tomorrow Lighting Prizes for solid state lighting. Establishes a Bright Light Tomorrow permanent fund to award such prizes. Authorizes appropriations.

(Sec. 214) Expresses the sense of the Senate that the Senate should: (1) pass a set of mandatory, technology-neutral standards to establish firm energy efficiency performance targets for lighting products; (2) ensure that the standards become effective within the next 10 years; (3) establish efficiency requirements to ensure that replacement lamps will provide consumers with the same quantity of light while using significantly less energy; (4) ensure that consumers will continue to have multiple product choices; and (5) work with industry and key stakeholders on measures that can assist consumers and businesses in making the important transition to more efficient lighting.

(Sec. 215) Instructs the Secretary to use appropriations under this Act to make grants to implement renewable energy projects. Authorizes appropriations.

Subtitle B: Expediting New Energy Efficiency Standards - (Sec. 222) Amends the Energy Policy and Conservation Act (EPCA) to prescribe or revise standards affecting: (1) regional efficiency for heating and cooling products; (2) procedures for new or amended standards; (3) energy conservation; (4) energy efficiency labeling for consumer electronic products; (5) residential boiler efficiency; (6) electric motor efficiency; and (7) home appliances.

(Sec. 223) Requires the Secretary to publish a final rule on the annual fuel utilization efficiency of furnace fans by December 31, 2014.

(Sec. 225) Requires the Secretary to review test procedures for all covered products at least once every seven years.

(Sec. 231) Requires research into technologies to improve the energy efficiency of appliances and mechanical systems for buildings in cold climates.

(Sec. 232) Directs the Secretary to: (1) award, competitively, financial incentives for the manufacture of high-efficiency consumer products; and (2) establish a program to support, develop, and promote the use of new materials manufacturing and industrial and commercial processes, technologies, and techniques to optimize energy efficiency. Authorizes appropriations for the latter program.

Subtitle C: Promoting High Efficiency Vehicles, Advanced Batteries, and Energy Storage - (Sec. 241) Directs the Secretary to establish a research and development (R&D) program to determine ways to reduce: (1) the weight of vehicles to improve fuel efficiency without compromising passenger safety; and (2) the cost of lightweight materials (such as steel alloys, fiberglass, and carbon composites) required for the construction of lighter-weight vehicles.

(Sec. 242) Amends the Energy Policy Act of 2005 to provide grants and loan guarantees to automobile manufacturers and suppliers.

(Sec. 243) Directs the Secretary to provide facility funding awards to automobile manufacturers and component suppliers to pay not more than 30% of the cost of: (1) reequipping, expanding, or establishing a manufacturing facility in the United States to produce advanced technology vehicles or qualifying components; and (2) engineering integration performed in the United States of qualifying vehicles and qualifying components.

(Sec. 244) United States Energy Storage Competitiveness Act of 2007 - Instructs the Secretary to: (1) implement an R&D and demonstration program for energy storage systems for motor transportation and electricity transmission and distribution; and (2) establish an Energy Storage Advisory Council and up to four Energy Storage Research Centers.

Authorizes appropriations for FY2008-FY2017.

(Sec. 245) Instructs the Secretary to establish a grants program for: (1) demonstrations of plug-in electric drive vehicles; (2) qualified electric drive transportation deployment projects; and (3) programs or activities to encourage owners of electrice drive transportation technoligies to use off-peak electricty or to have the load managed by the grant-receiving public or private utility. Authorizes appropriations for FY2008-FY2013.

(Sec. 246) Amends the Energy Policy Act of 1992 to extend its coverage to specified electric vehicles entitled to credits for alternative fuel usage. Authorizes appropriations for FY2008-FY2013.

(247) Directs the Secretary, if specified conditions are met, to establish a commercial advanced insulation demonstration program.

Subtitle D: Setting Energy Efficiency Goals - (Sec. 251) Directs the Director of the Office of Management and Budget (OMB) to publish an oil savings target and action plan.

(Sec. 252) Declares national energy efficiency improvement goals. Requires the Secretary to develop a strategic plan and conduct a national media campaign. Authorizes appropriations for FY2008-FY2012.

(Sec. 253) Directs the Secretary, the Federal Energy Regulatory Commission (FERC), and other appropriate federal agencies to support the use, development, and demonstration of advanced transmission and distribution technologies as part of a program to modernize the electricity grid system.

(Sec. 255) Requires the Secretary to: (1) report to Congress concerning the status of smart grid deployments nationwide and any regulatory or government barriers to continued deployment; and (2) implement smart grid technology R&D program, including power grid digital information technology and a smart grid regional demonstration initiative.

(Sec. 257) Directs FERC to coordinate with smart grid stakeholders to develop protocols to establish a flexible framework for the connection of smart grid devices and systems to enable all electric resources, including demand-side resources, to contribute to an efficient, reliable electricity network.

(Sec. 258) Amends the Public Utility Regulatory Policies Act of 1978 to require states to consider requiring that, before undertaking investments in nonadvanced grid technologies, a state electric utility demonstrate that it has considered an investment in a qualified smart grid system.

(Sec. 259) Declares it is U.S. policy to provide support for projects and activities to facilitate the energy independence of the United States so as to ensure that all but 10% of U.S. energy needs are supplied by domestic energy sources.

(Sec. 260) Establishes the National Commission on Energy Independence to conduct a comprehensive review of U.S. energy policy and to report to Congress and the President on the progress of United States in meeting its long-term goal of energy independence.

Subtitle E: Promoting Federal Leadership in Energy Efficiency and Renewable Energy - (Sec. 261) Amends EPCA to set forth federal fleet conservation requirements, including a mandatory reduction in petroleum consumption that achieves: (1) by October 1, 2015, at least a 20% reduction in petroleum consumption by each federal agency; and (2) increased alternative fuel consumption by 10% annually by each federal agency.

(Sec. 262) Amends the Energy Policy Act of 2005 to revise the federal requirement to purchase electricity generated by renewable energy.

(Sec. 263) Amends the National Energy Conservation Policy Act to repeal: (1) mandatory availability of certain energy and water cost savings for agency expenditure for additional energy efficiency measures; and (2) the sunset of (thus making permanent) federal agency authority to enter into energy savings performance contracts.

Instructs the Secretaries of Energy and of Defense to report to Congress and the President on the potential of energy savings performance contracts to reduce energy consumption and provide energy and cost savings in nonbuilding applications.

(Sec. 264) Increases the energy performance requirements for federal buildings.

(Sec. 265) Instructs the Secretary to identify federal sites that could achieve significant cost-effective energy savings through the use of combined heat and power or district energy installations.

Permits such energy savings to be applied to meet agency energy performance requirements.

(Sec. 266) Amends ECPA to set forth a schedule for reduced consumption of fossil fuel-generated energy by federal buildings.

(Sec. 267) Amends the Cranston-Gonzalez National Affordable Housing Act to modify the application of international energy conservation code to public and assisted housing.

(Sec. 268) Instructs the Secretary to enter into an agreement with a consortium of business, academic, and governmental entities to implement an Energy Efficient Commercial Buildings Initiative to: (1) reduce the quantity of energy consumed by commercial buildings in the United States; and (2) achieve the development of energy efficient commercial buildings. Authorizes appropriations.

(Sec. 269) Amends the Federal Power Act to authorize the Secretary to designate as a national interest electric transmission corridor any geographic area experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers.

(Sec. 270) Prescribes product requirements for any federal agency purchasing a commercially available, off-the-shelf product using external standby power devices or containing an internal standby power function (eligible product) that is also listed in a Department of Energy (DOE) compilation.

(Sec. 270A) Amends ECPA to require that, if life-cycle cost-effective, at least 30% of the hot water demand for each new or substantially modified federal building be met through the installation and use of solar hot water heaters.

(Sec. 270B) Directs the Secretary to implement a Renewable Energy Innovation Manufacturing Partnership Program to make assistance awards to eligible entities for R&D relating to the manufacturing of renewable energy technologies. Authorizes appropriations for FY2008-FY2013.

(Sec. 270C) Amends the Small Business Act to provide for express loans for renewable energy and energy efficiency.

(Sec. 270D) Instructs the Administrator of the Small Business Administration (SBA) to: (1) promulgate final rules that ensure compliance with a statutory small business education and assistance program; (2) publish a detailed plan regarding how the Administrator will assist small business concerns in becoming more energy efficient; and (3) build on the Energy Star for Small Business Program of DOE and the Environmental Protection Agency (EPA).

Establishes an Assistant Administrator for Small Business Energy Policy to: (1) administer the Energy Star for Small Business Program; and (2) promote energy efficiency efforts for small business concerns and reduce their energy costs.

Directs the Administrator to: (1) establish a Small Business Energy Efficiency Pilot Program to provide energy efficiency assistance to small business concerns through small business development centers; and (2) select small business development center programs from designated states.

Directs the Comptroller General to evaluate and report to certain congressional committees on the Efficiency Pilot Program. Authorizes appropriations.

Requires the Administrator to conduct a pilot program to provide information regarding telecommuting to small business concerns, especially those owned by or employing individuals with disabilities, particularly veterans. Authorizes appropriations.

Amends the Small Business Act to direct the Administrator to ensure that certain federal agencies give high priority to small business concerns that participate in or conduct energy efficiency or renewable energy system R&D projects.

Subtitle F: Assisting State and Local Governments in Energy Efficiency - (Sec 271) Amends ECPA to: (1) increase funding for weatherization assistance for low-income persons; and (2) extend through FY2012 the authorization of appropriations for such assistance as well as for the State Energy Conservation Plan program.

(Sec. 273) Amends the Public Utility Regulatory Policies Act of 1978 to require each electric utility to: (1) integrate energy efficiency resources into utility, state, and regional plans; and (2) adopt policies establishing cost-effective energy efficiency as a priority resource.

Requires each natural gas utility to: (1) integrate energy efficiency resources into its plans and planning processes; and (2) adopt policies that establish energy efficiency as a priority resource in its plans and planning processes.

(Sec. 274) Instructs the Secretary to provide technical assistance to state energy offices, public utility regulatory commissions, and nonregulated utilities regarding the energy efficiency and demand response programs.

(Sec. 275) Amends the Housing and Community Development Act of 1974 to direct the Secretary to provide: (1) block grants to state, Indian tribal, and local governments to implement environmentally beneficial energy strategies; and (2) a supplemental grant to pay the federal share of costs of any activity relating to implementation of such a strategy. Authorizes appropriations for FY2008-FY2012.

(Sec. 276) Amends EPCA to direct the Secretary to award grants to institutions of higher education (including those with small endowments) to: (1) implement improved energy efficiency on the institution grounds and facilities; and (2) engage in innovative energy sustainability projects.

(Sec. 277) Amends the Energy Policy Act of 2005 to instruct the Secretary of Labor to establish an energy efficiency and renewable energy worker training program that includes: (1) assistance to support national research to develop labor market data and to track future workforce trends resulting from energy-related initiatives; (2) National Energy Training Partnerships Grants to develop an energy efficiency and renewable energy industries workforce; (3) grants for states to administer labor market and labor exchange informational programs; and (4) grants for states administer renewable energy and energy efficiency workforce development programs.

(Sec. 278) States that Congress encourages each local educational agency receiving federal funds under the Elementary and Secondary Education Act of 1965 to develop a policy to reduce the incidence of school bus idling at schools while picking up and unloading students. Authorizes appropriations for FY2008-FY2012.

(Sec. 279) Amends ECPA to extend weatherization assistance for low-income persons to Puerto Rico.

(Sec. 280) Instructs the Administrator of the Energy Information Administration to: (1) review and analyze information on planned refinery outages to determine whether scheduling of a planned refinery outage may nationally or regionally affect the price or supply of any refined petroleum product; and (2) report biannually to the Secretary of Energy.

Requires the Secretary, upon receipt of the report, to make such information available to refinery operators to encourage reductions of the quantity of refinery capacity that is out of service at any time.

(Sec. 281) Amends the Energy Policy Act of 2005 to revise the technical criteria for the year 2020 governing gasification projects for the clean coal power initiative.

(Sec. 282) Amends the Alaska Natural Gas Pipeline Act to set forth requirements for personnel administration by the Federal Coordinator without regard to federal civil service requirements for appointments in the competitive service.

(Sec. 283) Amends the Outer Continental Shelf Lands Act to revamp the criteria upon which a lease, easement, or right-of-way will be issued on a noncompetitive basis.

Subtitle G: Marine and Hydrokinetic Renewable Energy Promotion - (Sec. 292) Directs the Secretary to establish: (1) a marine and hydrokinetic renewable energy research program; (2) national ocean energy research centers at institutions of higher education. Authorizes appropriations: (1) for FY2008-FY2012 for the former program; and (2) indefinitely for the latter.

Title III: Carbon Capture and Storage Research, Development, and Demonstration - Carbon Capture and Sequestration Act of 2007 - (Sec. 302) Amends the Energy Policy Act of 2005 to establish an R&D program for carbon capture and storage. Authorizes appropriations for FY2008-FY2012.

(Sec. 303) Instructs the Secretary of the Interior to: (1) complete a national assessment of capacity for carbon dioxide; (2) enter into partnerships to collect and integrate data from other drilling programs relevant to carbon dioxide storage in geologic formations.

Authorizes appropriations for FY2008-FY2012.

(Sec. 304) Directs the Secretary of Energy to implement a program to demonstrate technologies for the large-scale capture of carbon dioxide from industrial sources of carbon dioxide. Authorizes appropriations for FY2009-FY2012.

(Sec. 305) Instructs the Architect of the Capitol to evaluate methods to establish a competitive grant demonstration program for the capture and storage or use of carbon dioxide emitted from the Capitol power plant as a result of burning coal. Authorizes appropriations.

(Sec. 306) Instructs the Secretary of the Interior to complete a national assessment of: (1) the quantity of carbon stored in and released from terrestrial ecosystems, including from man-caused and natural fires; and (2) the annual flux of covered greenhouse gases in and out of terrestrial ecosystems. Prescribes methodology and implementation procedures. Requires development of adaptation or mitigation strategies employable to enhance sequestration of carbon in each terrestrial ecosystem, reduce greenhouse gas emissions, and adapt to climate change.

(Sec. 307) Directs the Secretary of Commerce to establish within the Office of Oceanic and Atmospheric Research of the National Oceanic and Atmospheric Administration (NOAA) a research program on abrupt climate change.

Title IV: Cost-Effective and Environmentally Sustainable Public Buildings - Subtitle A: Public Buildings Cost Reduction - Public Buildings Cost Reduction Act of 2007 - (Sec. 402) Instructs the Administrator of General Services (GSA) to establish a program to accelerate the use of more cost-effective technologies and practices and geothermal heat pumps at GSA facilities. Prescribes procedures for GSA facility technologies and practices.

(Sec. 403) Instructs the Administrator of the Environmental Protection Agency (EPA) to establish a demonstration grant program for local governments to: (1) deploy cost-effective technologies and practices; and (2) achieve operational cost savings, through the application of cost-effective technologies and practices.

Requires a final report that summarizes total cost savings achieved, and recommendations for further action.

Subtitle B: Installation of Photovoltaic System at Department of Energy Headquarters Building (Sec. 411) Directs GSA to install a photovoltaic system at department of energy headquarters building ( Forrestal Building).

Subtitle C: High-Performance Green Buildings - High-Performance Green Buildings Act of 2007 - Part I: Office of High-performance Green Buildings (Sec. 432) Instructs the GSA Administrator to establish the Office of High-Performance Green Buildings managed by a Director in the career-reserved Senior Executive service.

Requires such Director to: (1) submit biennially to Congress a status report on the green building initiatives; (2) establish the Green Building Advisory Committee; (3) maintain a national high-performance green building information clearinghouse; (4) develop a high-performance green building research plan; (5) implement a federal facilities indoor air quality program to ensure occupant safety; and (6) analyze budget and contracting practices that affect high-performance green buildings, including barriers to green building life-cycle costing and budgetary issues.

Part II: Healthy High-Performance Schools (Sec. 442) Authorizes the Administrator of the Environmental Protection Agency (EPA Administrator) to provide grants to state agencies to implement EPA programs that target environmental quality of school buildings.

(Sec. 443) Requires the EPA Administrator to develop voluntary school site selection guidelines regarding: (1) special vulnerability of children to hazardous substances or pollution where potential school site contamination exists; (2) modes of transportation available to students and staff; (3) efficient use of energy; (4) potential use of a school as an emergency shelter; and (5) state implementation of school environmental health program.

Part III: Strengthening Federal Leadership (Sec. 451) Requires the Director of the Office of High-Performance Green Buildings (Director) to identify incentives to encourage the use of green buildings and related technology in the operations of the federal government.

(Sec. 452) Requires the Director of the Office of Federal Procurement Policy to issue guidance to federal procurement executives providing direction and the option to renegotiate the design of proposed facilities, renovations for existing facilities, and leased facilities to incorporate improvements consistent with this Act.

(Sec. 453) Instructs the Comptroller General to report to Congress and selected officials on the results of an audit of the implementation of this Act governing high-performance green buildings.

(Sec. 454) Prescribes storm water runoff requirements for federal development projects.

Part IV: Demonstration Project (Sec. 461)Instructs the Director to establish guidelines to implement a demonstration project to contribute to the research goals of the Office.

Title V: Corporate Average Fuel Economy Standards (Sec. 501) Ten-in-Ten Fuel Economy Act -Amends federal transportation law to instruct the Secretary of Transportation to prescribe average fuel economy standards for automobiles, commercial medium-duty or heavy-duty on-highway vehicles for model years 2011 - 2020.

(Sec. 503) Revises fuel economy standards governing: (1) feasibility criteria governing maximum average fuel economy; and (2) alternative standards.

(Sec. 505) Requires such Secretary to issue a motor vehicle safety standard that addresses management of crash forces in multiple vehicle frontal and side impact crashes between different types, sizes, and weights of automobiles.

(Sec. 506) Authorizes the Secretary to establish a corporate average fuel economy credit trading program to allow manufacturers whose automobiles exceed prescribed average fuel economy standards to earn credits to be sold to manufacturers whose automobiles fail to achieve such standards.

(Sec. 507) Revises fuel economy labeling information to include: (1) fuel economy and greenhouse gas and other emissions consequences of operation; (2) a green label program; and (3) a fuelstar program.

(Sec. 509) Directs the Secretary of Transportation to execute an agreement with the National Academy of Sciences to develop a report evaluating vehicle fuel economy standards.

(Sec. 510) Modifies standards governing executive agency automobiles to require the head of an Executive agency to ensure that each new automobile procured by the agency is as fuel efficient as practicable.

(Sec. 511) Instructs the Secretary of Energy to prescribe regulations that require the manufacturer of automobiles for sale in the United States to: (1) prominently display on each automobile that it is capable of operating on alternative fuel.

(Sec. 512) Requires the EPA Administrator to review periodically the accuracy of fuel economy labeling procedures and report thereon to certain congressional committees.

(Sec. 513) Directs the Secretary of Transportation to: (1) promulgate rules establishing a national tire fuel efficiency consumer information program for tires designed for use on motor vehicles; and (2) report thereon to certain congressional committees.

(Sec. 514) Instructs the Secretary of Energy to: (1) implement an Advanced Battery Initiative to support R&D of battery technologies through competitively-awarded grants; and (2) select an Industry Alliance to represent private, for-profit firms whose primary business is battery manufacture.

(Sec. 515) Requires the EPA Administrator to promulgate regulations to ensure that diesel-equivalent fuels derived from renewable biomass that are introduced into interstate commerce are tested and certified to comply with American Society for Testing and Materials standards.

(Sec. 516) Instructs the Secretary of the Treasury to transfer to the Secretary of Transportation and to the Energy Security Fund those civil penalties obtained from legal actions to enforce this Act.

(Sec. 517) Establishes the Energy Security Fund to implement the Alternative Fuels Grant Program implemented by the Secretary of Energy to expand availability of alternative fuels to consumers.

(Sec. 519) Directs the Secretary of Transportation to implement an action plan to ensure that, beginning with model year 2015, the percentage of new alternative fuel automobiles for sale in the United States is not less than 50%.

(Sec. 521) Directs the Secretaries of Transportation and of Energy to study and report to Congress on the adequacy of transportation of domestically-produced renewable fuels by railroad and other modes.

Title VI: Price Gouging - Petroleum Consumer Price Gouging Protection Act (Sec. 603) - Prohibits the sale of crude oil, gasoline, or petroleum distillates at unconscionably excessive price by a supplier during any period declared to be an energy emergency by the President.

(Sec. 604) Prohibits: (1) market manipulation or market deception in connection with the purchase or sale of crude oil gasoline or petroleum distillates at wholesale; (2) reporting false information regarding such products.

(Sec. 606) Sets forth conditions of supply shortages under which the President is authorized to declare that a federal energy emergency exists.

(Sec. 607) Provides for: (1) Federal Trade Commission enforcement of this Act; and (2) state Attorneys General enforcement of this Act.

(Sec. 609) Subjects violators to civil and criminal penalties.

Title VII: Energy Diplomacy and Security - Energy Diplomacy and Security Act of 2007 (Sec. 703) Expresses the sense of Congress regarding national energy security and implementation of United States international energy policy among the relevant federal agencies engaged in relevant agreements and activities, including: (1) there should be established within the Office of the Secretary of State a Coordinator for International Energy Affairs; and (2) there should be established within the Department of Energy an Assistant Secretary of Energy for Energy Security.

(Sec. 704) Authorizes the Secretary of State, in coordination with the Secretary of Energy to: (1) expand strategic energy partnerships with foreign governments and submit annual progress reports thereon to Congress; and (2) establish petroleum crisis response mechanisms with the Governments of China and India; and (3) establish a Western Hemisphere energy crisis response mechanism.

Directs the President should place on the agenda for discussion at the Governing Board of the International Energy Agency, the merits of establishing an international energy program application procedure.

Requires the following reports to be submitted to congressional committees regarding: (1) coordination of the domestic strategic petroleum reserve and the international petroleum reserve; (2) establishment of the international petroleum crisis response mechanisms; and (3) actions in connection with the emergency application procedure.

(Sec. 706) Instructs the Secretary of State to establish the Hemisphere Energy Cooperation Forum to implement: (1) an Energy Crisis Initiative that will establish measures to respond to temporary energy supply disruptions; (2) an Energy Sustainability Initiative to foster reliable supply sources of fuels; and (3) an Energy for Development Initiative to promote energy access for underdeveloped areas.

Authorizes the Secretary of State to seek cooperation with other governments in the Western Hemisphere in establishing a Hemisphere Energy Industry Group, and to report thereon to certain congressional committees.

(Sec. 707) Amends the National Security Act of 1947 to add the Secretary of Energy as member of the National Security Council.

(Sec. 708) Requires the President to report annually to Congress on the national energy security of the United States.

(Sec. 710) No Oil Producing and Exporting Cartels Act of 2007, or `NOPEC', Amends the Sherman Act [sic] to prohibit any foreign state, or entity from taking specified actions in restraint of trade (including setting prices) when such action, has a direct, substantial, and reasonably foreseeable effect on the market, supply, price, or distribution of oil, natural gas, or other petroleum product in the United States.

Empowers the Attorney General to enforce this Act.

(Sec. 711) Provides a statutory mechanism to allocate the contingent costs associated with participation by the United States in the international nuclear liability compensation system established by the Convention on Supplementary Compensation for Nuclear Damage (Convention).

Declares that: (1) funds made available under certain indemnification provisions of the Atomic Energy Act of 1954 shall be used to cover the contingent cost resulting from any Price-Anderson incident; and (2) funds made available to the United States under the Convention with respect to a Price-Anderson incident shall be used to satisfy public liability resulting from the Price-Anderson incident.

Requires each nuclear supplier to participate in a retrospective risk pooling program to cover the contingent cost resulting from a covered incident outside the United States that is not a Price-Anderson incident.

Requires the Secretary of Energy to make available to nuclear suppliers, and insurers of nuclear suppliers, information to support the voluntary establishment and maintenance of private insurance against any risk for which nuclear suppliers may be required to pay deferred payments under this Act.

Title VIII: Miscellaneous (Sec. 801) Instructs Secretary to study and report to Congress on the laws affecting the siting of privately owned electric distribution wires on and across public rights-of-way.

Tuesday, November 06, 2007

Tuesday, May 15, 2007

Four Dollar a Gallon Gasoline Doesn’t Scare Me, but What Does Scare Me Is……

It’s just a matter of time, this month, next month, this year, next year $4.00 a gallon gasoline and higher will be a factor in our lives.


May 15 AOL quoted Phil Flynn, a senior market analyst at Alaron Trading in Chicago as saying, "I think it's going to happen. Unless things change dramatically, I think we're going to see $4 a gallon." Flynn said, “Gasoline stocks have fallen for the past twelve weeks straight and are now at their lowest level for this time of year since 1956.”


In the same article “Peter Beutel, an oil analyst at consulting firm Cameron Hanover, noted in a recent report that refineries have not operated above 95 percent capacity since Hurricanes Rita and Katrina in 2005. Before 2005, the refineries, clustered around the Gulf coast and badly damaged in the storms, routinely operated at over 95 percent capacity.”


However, $4.00 a gallon gasoline doesn’t scare me.


Despite some inflation, a change in life style by some, $4.00 a gallon gasoline can probably be digested by the American economy. It won’t be pleasant, but will probably spur some of us to opt for more flex fuel and/or more efficient fuel consuming vehicles.


What does scare me is the continuing trouble in Nigeria. The United States imports approximately 14% of its oil from that African country.


Today, The NIGERIAN TRIBUNE reported “As at last week, the militants in the Niger Delta put Nigeria oil industry on edge. Eni [Agip] Companies in Nigeria were the worst hit as the attackers paralysed operations at the Brass oil terminal of Agip by sabotaging the pipelines feeding the terminal. Chevron Nigeria Limited also announced that it would begin to withdraw staff from offshore location because of escalating violence in the creeks after six of its workers were kidnapped and it also had to shut in 57,000 barrels of oil.”


What happens if the terrorists continue their endeavors and eventually bring Nigeria’s oil exports to a stop?


All we need to do is look back to the Arab Oil Embargo of 1973. Then the United States was only importing 30% of its oil consumption in more than 60% in 2006.


The Arab oil embargo of 1973 created a 6%-7% percent decline in consumption of oil by the United States, . Yet, the price of oil quadrupled and the NYSE lost $97 billion of value.


Now here is what really scares me.


Imagine if the situation in Nigeria continues to deteriorate to the point where its oil fields are shut down creating a 14% shortfall in oil supplies to the United States. That’s more than double the shortfall that was created in 1973 by the Arab Oil Embargo.


The results of such a shortfall would make the consequences the United States suffered from the Arab Oil Embargo pale in comparison.


It is easy to imagine a nightmare of double digit inflation, a downward spiraling of the standard of living, long lines at gas and even food stations, and possible riots and worse.



That nightmare is what spurs me to urge all who read this to work for U.S. energy independence through:

  • The development of U.S. fuel resources.

  • The continuing development of alternative fuel resources , such as ethanol, wind, solar, and even such esoteric sources such as the fusion of Helium3 .

  • Conservation in vehicle fuel consumption.

  • The development of and the use of more energy efficient housing, manufacturing and transportation.

  • Development of new modes of mass transit..


If the United States can achieve near energy independence than the nightmare of severe energy shortages will never occur. Instead the nightmare is replaced greater prosperity throughout the world through the development of new and alternative energy resources. These developments will raise the standard of living of even those in third world nations, without increasing the environmental footprint that such development created in the past.


That’s why USA Energy Independence dot com exists. To provide you our reader a format of news and views of technology and leadership that can prevent a nightmare and create a dream.









Sunday, May 06, 2007

Stossel Sacrifices Solid Reporting in "Corn God..." report

The rebuttal of Keith Sanderson, President and Co-Founder U.S.A. Energy Independence to John Stossel of ABC's recent piece "Sacrificing our Children to the Corn God."
John,
I am usually quite impressed by your objectivity and in-depth research regarding "Myths and Lies and Downright Stupidity". . However this time you and your team showed about as little in-depth knowledge about ethanol as you accuse many of your colleagues about having about science or economics.
Here are four reasons you are wrong regarding your piece "Sacrificing our Children to the Corn God,"
1. Those who are in the hunt for ethanol such as Andy Karsner, Undersecretary of State, Vinod Khosla cited as one of the most influential venture captiaists by both Forbes and Fortune magazines, Admiral Woolsey, VP Booz & Allen and former head of the Central Intelligence Agency, and Dr. Chu of of the Livermore research center who just received a $500,000,000 research grant from BP will all agree that corn ethanol is only a tranistional fuel source. They would likely agree that the U.S could not depend upon corn or row crop ethanol as the primary source for ethanol. The future of ethanol is in cellulosic ethanol. And had your team done its job they would have known that. You and your team failed to either understand the transitional nature of corn ethanol or chose not to include the whole story about ethanol in your report.
2. Luddite-like you chose to report on ethanol as if all things will remain the same as far as energy. Here are the facts. According to the U.S. department of energy the U.S. imported more than 60% of its petroleum needs in 2007. Saudi Arabia, Venezuela, and Nigeria each provide us more than 10% of our oil. These nations are either unstable politically or located in unstable parts of the world. Imagine what would happen if something occurred to interrupt their oil to us. To help you imagine just think of the oil crisis in 1973. At that time the United States was importing far less oil as a percentage of its needs than the 60% of its consumption that it imports today. Gasoline rose in price from $.30 a gallon to $1.20. Today, a similar curtailment of oil supply could raise gasoline pump prices from $3.20 a gallon to almost $12.00 a gallon. Without both corn and cellulosic ethanol development a curtailment in oil imports to the U.S. will be crippling to your economy and have a much greater negative impact on our children than your claims of danger from ethanol development will ever have..
3. Transport. Yes corn or cellulosic ethanol are more corrosive than gasoline. However, there is not the need to transport ethanol the great distances one must transport gasoline. Why? Because ethanol refineries are not scalable as are gasoline refineries. The nature of ethanol refineries (corn or celluolsic) scatter them across the country. Yes some modifications will have to be made to transport ethanol, but there will not be a need to secure pipelines in unstable areas such as Nigeria, and the Middle East, or secure ports and shipping lanes from those nations. In addition, Louisiana, Texas,California refine 45% of the nation's gasoline. We luckily escaped severe damage on Louisiana refineries by Hurricane Katrina. Experts such as Admiral Woolsey suggest that having our gasoline refining assets concentrated leaves this country open to supply interruptions due to both natural disasters and terrorism. The very nature of ethanol scatters our refining assets across the country.
4. Technology moves on despite the fact your reporting doesn't recognize it. The automakers tell us they will have hybrid vehicles within the next ten years that will get more than 100 miles per gallon. The average commuter (40 miles per day) will not consume a drop of gasoline with new lithium battery technology. The increased gasoline mileage coupled with the production of corn ethanol and increased production of cellulosic ethanol can and will seriously decrease our dependence on foreign oil.
Mr. Stossel, I invite you to unlike most of your peers, admit that you made an error in reporting and set the record straight by busting the unfair myth you have created about ethanol by concentrating on corn ethanol and not on the total ethanol story.

Keith W. Sanderson
President and Cofounder