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Federal Policies
2007 Energy Bill in Review

After three decades of effort, not to mention thousands of letters and emails from UCS supporters, we made history in December when Congress passed the Energy Bill containing the first increase in fuel economy standards since 1974. In addition, we won a critical battle to keep nuclear power subsidies out of the bill. This historic victory was not a complete one, however. For example, the Senate removed the renewable energy standard and critical renewable energy tax incentives from the final bill, despite support for both provisions in the House and Senate.

The Final House Bill—A Historic Achievement

Making history can often be a long and difficult road, but 30 years of stagnation on Corporate Average Fuel Economy (CAFE) standards was finally reversed thanks in part to the tireless work of UCS activists, analysts, lobbyists, and allies.
 
On Friday, November 30, House leaders announced an agreement that closely resembled the fuel economy provision passed by the Senate in June. The agreement would raise fuel economy standards of America's cars, light trucks, and sport utility vehicles to an average of at least 35 miles per gallon by 2020, a 10-miles-per-gallon increase over current levels.

Automakers continued to work to both weaken the overall standard and, alternatively, try to use the new standard as pretext for removing both the states’ and Environmental Protection Agency’s (EPA) rights to regulate global warming pollution from vehicles. In the end, neither effort met with success, as both the fuel economy target and rights to regulate carbon from vehicles were preserved in the bill passed by the House. However, the automakers were able to win an unfortunate extension of the dual fuel loophole, allowing vehicles that can, but rarely do, use alternative fuels to be credited for an unrealistically high fuel economy number. But that loophole is still set to close by 2020.

In all, the House’s energy bill increased fuel economy standards; established the first national requirement for utilities to acquire a percentage of their energy from wind, solar, or other clean, renewable sources; shifted tax incentives from oil and gas to renewable energy; and increased and improved the renewable fuels standard with improved environmental safeguards and requirements for the production of non-corn based or advanced ethanol. Backed by Speaker of the House Nancy Pelosi, the bill passed 235 to 181 on December 6, 2007.

The Senate—A Struggle to Reach Victory

In preparation for the Senate vote, UCS brought especially influential renewable energy advocates to Washington, D.C., to lobby senators whose votes we still needed. These allies came from all over the country—including Alaska, Indiana, Oregon, Florida, Arkansas, South Dakota, and Nevada—and from all across the political spectrum. As geothermal developers, farmers, community-wind advocates, tribal renewable energy leaders, biomass experts, and allies of sporting clubs, these messengers broadened our coalition and allowed us to meet with many members of Congress who have been unreceptive to our arguments in the past.

UCS analysts also responded quickly to counter industry claims with key facts and statistics, many of which can be seen in the UCS Energy Bill Resource Center.

To advance a good, strong energy bill in the media, UCS joined three other national organizations to develop a national media and ad campaign emphasizing the new jobs created by developing and implementing new technologies to increase fuel economy and generate renewable energy. The media campaign placed ads based on the 35-mpg fuel economy standard and the 15 percent renewable electricity standard and the jobs that would be created by the green energy economy.

Unfortunately the Senate failed to pass the House’s comprehensive energy bill. While supporters of the bill were in the majority, Senate leaders were unable to get the 60 votes needed to get the bill through. After two unsuccessful attempts to pass the comprehensive bill that included the renewable energy standard as well as the tax and market-based incentives to increase our nation's use of clean renewable energy, Senate leadership amended the bill by removing the renewable energy provisions. Senate leaders have expressed their intention to try to pass the renewable electricity standard and tax incentives removed from the bill in other legislation.

On the more positive side, however, a loan guarantee program that would have disproportionately benefited nuclear power—something many expected might creep back into the Senate bill after being removed by the House—did not reappear. Instead, the nuclear power industry only managed to attach a small program to a separate appropriations bill. The total amount, $18.5 billion, is in reality too small to allow for a government-subsidized expansion of nuclear power plants.

The final Energy Bill, while not ideal, will raise fuel economy standards for the first time in 32 years, extend critical renewable energy tax credits, expand use of biofuels that meet environmental standards, and raise appliance energy efficiency standards. This version of the Energy Bill was signed by the president on December 18, 2007.

How Did We Do It?

This tremendous progress was the culmination of a full year’s work. In January 2007, UCS activists across the country began a grassroots drumbeat for both the higher fuel economy and new renewable energy standards. June marked the launch of our “Fuel a Cooler Future” campaign where activists focused on an Energy Bill that would create jobs, save consumers money, and reduce our global warming pollution by including these two critical initiatives. During the campaign, UCS activists sent nearly 100,000 messages calling for a good, strong Energy Bill.

And there were not only emails—thousands picked up the phone and personally urged their members of Congress to clean up our energy system and reduce our dependence on imported oil, while others used our Receipt Revolution action to mail personalized gas receipts to Congress. With the help of UCS Clean Vehicles and Clean Energy staff, some activists even went as far as to try and set up personal meetings with their representatives. On Capitol Hill, calls, hand-written letters, and in-district meeting requests make a particular impression on congressional staff and members of Congress, sending the signal that constituents really care about an issue.

What’s Next?

While we will continue to work to get the rest of the positive portions of the House version of this bill passed into law, and President Bush has already decided to use this bill as a lever to deny the waiver needed by states to enact the clean car standards (see Clean Vehicles update for more information), we should take a moment to congratulate ourselves on this, step to address U.S. energy and climate security. Together, we truly made history. 

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Page Last Revised: 01/11/08