Crossposted from SmokeyMonkey.org and at CongressMatters.com
I was just diddling through the legislation passed by the 110th Congress, and I thought I'd look a little more deeply at some of the long-term benefits that were passed in the Energy Independence and Security Act of 2007. I found that there are a number of things that are interesting to the debate on energy policy as we go forward.
While the entire piece of legislation is a fascinating read, it is often difficult to simply sit down with it and understand its significance. I've been reading legislation for 3 years now and I'm certainly nothing of an expert. Nonetheless, if you understand english, logic, and a bit of legalese, you can tease out the parts that are interesting. I have tried to spare you the pain by doing so below.
Introduction
My interest here is to look at the future. I have written on Progressive Proposals on Climate Change before, but that was focused on goals, not implementation. When reading energy policy, it is all about implementation. I have, therefore, focused on sections that have authorizations for appropriations included. These are all things that were signed into law in December 2007, so these are programs that can be immediately implemented by the Obama administration.
Section by Section Analysis
Section 105 - Labelling of Greenhouse Gas Emissions
Instructs the Secretary to develop and implement a program to require manufacturers to ... label new automobiles sold in the United States with information and a rating system on an automobile's performance on the basis of criteria reflecting fuel economy and greenhouse gas and other emissions; ...
The major change there, of course, is the inclusion of emissions labelling. Vehicles are already labelled with their EPA estimated fuel economy. This was shown to be significant during the period of high fuel prices. Consumers, informed with fuel economy labels, rejected gas-guzzling trucks for more efficient cars. By labelling lifetime emissions of the vehicle, consumers can choose a less polluting automobile.
Of course, instructions to the Bush administration are pointless, but this requirement is not due for 6 more months. The actual wording (formatting largely removed):
The Secretary of Transportation, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and implement by rule a program to require manufacturers to label new automobiles sold in the United States with information reflecting an automobile's performance on the basis of criteria that the Administrator shall develop, not later than 18 months after the date of the enactment of the Ten-in-Ten Fuel Economy Act, to reflect fuel economy and greenhouse gas and other emissions over the useful life of the automobile; ...
Section 131 - Plug-in Electric Program
The Secretary shall establish a competitive program to provide grants on a cost-shared basis to State governments, local governments, metropolitan transportation authorities, air pollution control districts, private or nonprofit entities, or combinations of those governments, authorities, districts, and entities, to carry out one or more projects to encourage the use of plug-in electric drive vehicles or other emerging electric vehicle technologies, as determined by the Secretary.
This program has some great potential. Along with some of the education programs also authorized, this plug-in electric program is the key to a major shift in transportation paradigm. Luckily, the bill backs up the thought with a budget item:
There is authorized to be appropriated to carry out this subsection $90,000,000 for each of fiscal years 2008 through 2012 ...
A third of that amount is to be for local and municipal governments.
Section 136 - Facility Funding for Automakers
Directs the Secretary of Energy to provide facility funding awards to automobile manufacturers and component suppliers to pay up to 30% of the cost of: (1) modifying or establishing manufacturing facilities to produce qualifying advanced technology vehicles or components; and (2) engineering integration performed in the United States of qualifying vehicles and qualifying components.
Directs such Secretary to establish a program to provide up to $25 billion in loans for the costs of such activities.
Sound familiar? This would be the money republicans insisted was used to help GM and Chrysler instead of the TARP funds.
Section 207 - Advanced Biofuels Grant Program
The Secretary of Energy shall establish a grant program to encourage the production of advanced biofuels.
There is authorized to be appropriated to carry out this section $500,000,000 for the period of fiscal years 2008 through 2015.
Again, a grant program with money to be appropriated - this is a progressive energy policy. I haven't looked into whether Bush has actually spent any of that money this year.
Section 223 - Biofuel R&D
The Secretary shall provide grants to eligible entities for research, development, demonstration, and commercial application of biofuel production technologies in States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol, as determined by the Secretary.
There are authorized to be appropriated to the Secretary to carry out this section $25,000,000 for each of fiscal years 2008 through 2010.
Yet another program that has money attached that the Obama administration can use right out of the gate to get some money to the green industry.
Section 315 - Energy Efficient Appliance Rebate
Amends the Energy Policy Act of 2005 to ... make eligible for special allocations any state whose energy efficient appliance rebate program provides rebates to residential consumers for the purchase of products with improved energy efficiency in a cold climate.
This would appear to be a simple redefinition for a particular tax rebate program. But the importance is in incentivising homeowners to purchase appliances. Appliances are not only one of the most important sources of energy uses in the home, but they are also a major component of consumer spending. Giving people a reason to upgrade their appliances will almost always be a win-win for environment and economy.
Section 422 - Commercial Building Initiative (CBI)
Requires the Commercial Director to establish the Zero-Net-Energy Commercial Buildings Initiative to: (1) reduce the quantity of energy consumed by commercial buildings and achieve zero net energy commercial buildings in the United States; and (2) competitively select a consortium to develop and implement the initiative.
The Department of Energy announced its Zero-Net-Energy Commercial Building Initiative in August 2008:
U.S. Department of Energy (DOE) Deputy Assistant Secretary for Energy Efficiency David Rodgers today announced the launch of DOE’s Zero-Net Energy Commercial Building Initiative (CBI) with establishment of the National Laboratory Collaborative on Building Technologies Collaborative (NLCBT). These two efforts both focus on DOE’s ongoing efforts to develop marketable Zero-Net Energy Commercial Buildings, buildings that use cutting-edge efficiency technologies and on-site renewable energy generation to offset their energy use from the electricity grid by 2025.
Commercial buildings use enough energy to emit nearly as much pollution as all the automobiles in the US. Therefore, reducing the energy needs of these buildings will have a significant impact on greenhouse gas emissions. Supplying that reduced need on-site will usher in a new era in this country as electrical grids find their demand radically reduced.
Section 452 - Energy-Intensive Industry Program
The Secretary shall establish a program under which the Secretary, in cooperation with energy-intensive industries and national industry trade associations representing the energy-intensive industries, shall support, research, develop, and
promote the use of new materials processes, technologies, and techniques to optimize energy efficiency and the economic competitiveness of the United States' industrial and commercial sectors.
Energy-intensive industries are those, such as data centers or precision manufacturing, that require a great deal of electrical energy as their basic component. Nearly $1 billion has been authorized for this program through 2012. I detailed an EPA report on datacenter efficiency in August 2007: EPA to IT: Let Your Datacenters Grow Green.
Section 1302 - Smart Grid Task Force
Instructs the Secretary of Energy to ... establish a Smart Grid Advisory Committee.
The Federal Smart Grid Task Force has become a reality. However, it doesn't appear that they have met since April 2008.
Summary
While it seems that the 2007 energy policy passed by a Democratic 110th Congress did make a great deal of changes to the 2005 Cheney policy, the implementation of those policies has been left to an administration that isn't interested in governing. It will be up to the Obama administration to begin executing the many gains we have already won through legislation.
Some of those gains, as detailed above:
- $90 million per year to promote plug-in electric vehicles
- $62 million per year to promote advanced biofuels
- $25 million per year to promote biofuel research and development
- $50 million per year the next two years to fund the CBI, with $100 million per year the two years after that
- $1 billion authorized through 2012 to optimize energy-intensive industries
While the Bush administration has followed through on creating some of the bureaucratic entities required by the legislation, little has been done to actually execute the policy that the 110th Congress enacted. I believe it is for us to remind our new administration of these programs, initiatives, and instructions.