Shaping Energy Technology Transition

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Energy Independence and Security Act of 2007 The Clean Energy Act of 2007, the original name of the Energy Independence and Security Act of 2007 (EISA 2007), had a variety of important goals: increased energy independence and security, production of clean renewable fuels, and consumer protection. Making products, buildings, and vehicles more energy efficient, and promoting research and deployment of greenhouse gas capture and storage options, were also significant features of the legislation. Leadership The House sponsor of the Clean Energy Act was Rep. Nick Rahall, D-W.Va. There were 198 additional representatives who cosponsored the bill. Legislative Story The Clean Energy Act’s mandate was to reduce foreign oil dependence by generating revenue for alternative energy and cutting subsidies to the oil industry. The original bill passed in the House by a vote of 264 to 163 without amendment in January 2007, due to a majority of support from Democrats. Speaker Nancy Pelosi, D-Calif., described the vote as “the first step toward a future of energy independence.”14 The bill was introduced in the Senate in June 2007. In contrast to the House version, the Senate bill focused more on energy efficiency and renewable energy. To reconcile the two versions, Speaker Pelosi planned to use informal bipartisan negotiations.15 The key matters under negotiation were CAFE standards, the RFS, a 15 percent RPS provision in the House bill, a proposed repeal of certain oil and natural gas subsidies to offset costs for new energy efficiency, and renewable energy tax incentives. In December, the House amended a new version of the bill and renamed it the Energy Independence and Security Act of 2007. The addition of new CAFE and RPS standards along with significant trimming and modifying of the original House bill resulted in the new EISA 2007 bill. 16 Even though the legislation would increase taxes on the oil industry and raise automobile fuel-efficiency standards, which the Republicans and White House were against, the bill passed the House on December 6, 2007, by a vote of 235 to 181.17 The House version of the bill included $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. The oil and automobile industries, and the U.S. Chamber of Commerce, strongly opposed the measures; the House version failed to pass by a one-vote margin. Due to a Republican filibuster and the threat of a presidential veto, Democratic leaders were forced to exclude the bill’s tax package, which resulted in its passage with overwhelming bipartisan support on December 13, 2007. When the final version 125

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