Energy Independence and Security Act of 2007

Enacted December 19, 2007
The Energy Independence and Security Act (EISA) of 2007 (Public Law 110-140) aims to improve vehicle fuel economy and reduce U.S. dependence on petroleum. EISA includes provisions to increase the supply of renewable alternative fuel sources by setting a mandatory Renewable Fuel Standard, which requires transportation fuel sold in the United States to contain a minimum of 36 billion gallons of renewable fuels annually by 2022. In addition, the law sets the Corporate Average Fuel Economy (CAFE) standard at 35 miles per gallon for passenger cars and light trucks by the year 2020. EISA also includes grant programs to encourage the development of cellulosic biofuels, plug-in hybrid electric vehicles, and other emerging electric vehicle technologies. The law is projected to reduce greenhouse gas emissions by 9% by 2030.

The table below provides a summary of the provisions related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation topics. The table indicates the agency with jurisdiction, a timeline if provided, and resources for more information. Note that although legislation authorizes funding for activities, Congress still must appropriate the funds through a separate federal budgeting process.

Reference and Agency with Jurisdiction Description
Section 102
Corporate Average Fuel Economy (CAFE) Increase

Requires a phased increase to an overall combined (city and highway) CAFE standard of 35 miles per gallon (mpg) by 2020. Implementation begins with Model Year (MY) 2011. Also requires a rule by December 2010 for work trucks and commercial medium- and heavy-duty trucks.

The U.S. Department of Transportation's (DOT) National Highway Traffic Safety Administration (NHTSA) issued a final rule establishing the average fuel economy standards for MY 2011 passenger cars and light trucks, raising the industry-wide combined average to 27.3 mpg. In addition, the U.S. Environmental Protection Agency (EPA) and NHTSA jointly issued fuel economy and greenhouse gas (GHG) emissions standards for MY 2012 through MY 2016 passenger vehicles. Original equipment manufacturers (OEMs) must improve fleet-wide fuel economy and reduce fleet-wide GHG emissions by approximately 5% each year. EPA and NHTSA are currently working jointly to establish fuel economy and GHG emissions standards for MY 2014 through 2018 medium- and heavy-duty trucks, as well as standards for MY 2017 and subsequent light-duty vehicles.

For more information, see the EPA Transportation and Climate Regulations and Standards website and the DOT Fuel Economy website.
Section 105
Consumer Information on the Benefits of Alternative Fuel Vehicles (AFVs)

Requires DOT to develop a new system of rating vehicles that makes it easier for consumers to compare fuel economy and GHG emissions of AFVs. Requires new labeling for fuel economy information, GHG emission benefits, and alternative fuel use.

DOT and EPA jointly proposed new fuel economy labels that include new information on fuel economy, savings on fuel, GHG emissions, and other pollutants. For electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), the agencies propose to show energy use by converting electricity consumption into a miles per gallon equivalent. The proposed designs for EVs also include energy use expressed in kilowatt-hours per 100 miles. For more information, see the EPA Fuel Economy and DOT Fuel Economy websites.
Section 107
DOT/NAS Fuel Economy Studies

DOT must execute an agreement with the National Academy of Sciences (NAS) to develop a report evaluating vehicle fuel economy standards. Subsequent updates of the report are due every five years through 2025.

Five years from agreement date.

Requires appropriation.
Section 108
DOT/NAS Heavy-Duty Fuel Economy Studies

DOT must execute an agreement with NAS to develop a report evaluating vehicle fuel economy standards.

Refer to the NAS report Technologies and Approaches to Reducing the Fuel Consumption of Medium- and Heavy-Duty Vehicles.
Section 109
Extension of FFV Credit Program

Extends the current fuel economy credits for flexible fuel vehicles (FFVs) and dual-fuel AFVs through 2019. Provides vehicles capable of operating on a 20% biodiesel and 80% diesel blend (B20) with the same level of fuel economy credit as other dual-fuel vehicles. The maximum increase that may result from such vehicles is capped at 1.2 mpg through 2014, after which it declines and expires in 2020.

NHTSA's April 2010 final rule for MY 2012-2016 light-duty vehicles is available through the DOT Fuel Economy website.
Section 131
Transportation Electrification

Authorizes the creation of a grant program supporting projects to encourage the use of PHEVs or other emerging electric drive technologies.

The American Recovery and Reinvestment Act (ARRA) of 2009 appropriated $400 million for transportation electrification grant projects.
Section 133
Inclusion of Electric Drive in Energy Policy Act (EPAct) of 1992

Affects state and alternative fuel provider fleets. Amends the Section 508 credit program to require DOE to allocate the quantity of credits for hybrid electric vehicles, EVs, and fuel cell and neighborhood electric vehicles, and investments in emerging technology, fueling infrastructure, and non-road electric vehicles.

Availability of credits is dependent on rulemaking.
Section 134
Loan Guarantees for Fuel Efficient Automobile Parts Manufacturers

Authorizes loan guarantees for production facilities for fuel efficient vehicles and parts, including electric drive and advanced diesels.

Requires appropriation.
Section 135
Loans for Advanced Battery Production

Authorizes loan guarantees for construction of manufacturing facilities for advanced vehicle batteries and battery systems.

ARRA appropriated $2 billion for the Advanced Battery Manufacturing Program.
Section 136
Advanced Technology Vehicles Manufacturing Incentives

Authorizes funding awards and a direct loan program for OEMs and component suppliers that re-equip, expand, or establish manufacturing facilities in the United States. to produce qualifying vehicles and components.

Authorizes funding for 2008-2012.

The Fiscal Year (FY) 2009 Continuing Resolution (CR) enacted in September 2008, appropriated $7.5 billion to support a maximum of $25 billion in loans under the Advanced Technology Vehicle Manufacturing program. The CR also provides $10 million to administer the program. ARRA and the Energy and Water Development and Related Agencies Appropriations Act of 2010 also appropriated funding for administrative expenses.

See the Advanced Technology Vehicles Manufacturing Loan Program website.
Section 141
Federal Vehicle Fleet

Prohibits federal fleets from acquiring vehicles that are not low GHG emitting vehicles.

EPA provided guidance on February 22, 2010, to implement the statutory requirement that Federal agencies acquire low GHG emitting vehicles through the Green Vehicle Guide Federal Vehicle Acquisition site. Updated information is available through the EPA Federal Fleets website.
Section 142
Federal Fleet Conservation Requirements

Codifies provisions in Executive Order 13423 (Strengthening Federal Environmental, Energy, and Transportation Management) relating to petroleum consumption and alternative fuel use. Requires federal agencies to achieve at least a 20% reduction in annual petroleum consumption and a 10% increase in annual alternative fuel consumption no later than October 1, 2015.

Effective beginning in 2010.

DOE guidance documents are available on the Sustainable Federal Fleets site to assist agencies in complying with federal fleet requirements.
Section 201-202
Renewable Fuel Standard (RFS)

Expands the national RFS to 9 billion gallons in 2008, with a phased increase to 36 billion gallons by 2022.

EPA's March 26, 2010, final rule is available through the RFS Program website.
Section 203
Feedstock Impact Study of RFS

Requires DOE to work with NAS to conduct a study and issue a report on the impacts of the RFS program, including impacts on various economic sectors.

Refer to the NAS Potential Economic and Environmental Effects of U.S. Biofuel Policy Study website.
Section 204
Environmental and Resource Conservation Impacts

Requires a study to report on the current and future environmental and resource conservation impacts of an RFS program, both domestic and abroad.

Refer to the EPA Biofuels and the Environment: First Triennial Report to Congress website.

Three years to complete study and every three years thereafter.

Requires appropriation.
Section 221
Report on the Barriers to Increasing the Volume of Biodiesel Sold in the US

Requires a report on the research and development challenges inherent in increasing the proportion of diesel fuel sold that is biodiesel.

Report due 180 days from enactment.

Requires appropriation.
Section 222
Report on the Barriers to Using Biogas as a Transportation Fuel

Requires a report on the research and development challenges inherent in increasing the amount of biogas or blended biogas sold as transportation fuel in the United States.

Report due 180 days from enactment.

Requires appropriation.
Section 225
Flexible Fuel Vehicle E85 Optimization Study

Requires DOE to study whether optimizing FFVs to operate on ethanol would increase fuel efficiency.

Study due 180 days from enactment.

Requires appropriation.
Section 226
Study of Engine Durability and Performance with Biodiesel Use

DOE, in cooperation with EPA, shall initiate a study on the effects of the use of biodiesel on the performance and durability of engines and engine systems.

Initiate study within 30 days. Study due in 24 months.

Requires appropriation.
Section 227
Study on Optimizing Natural Gas Vehicles for Biogas

Requires a study of methods of increasing the fuel efficiency of vehicles using biogas by optimizing natural gas vehicle systems that can operate on biogas, including the advancement of vehicle fuel systems and the combination of hybrid-electric and plug-in hybrid electric drive platforms with natural gas vehicle systems using biogas.

180 days to initiate study.

Requires appropriation.
Section 229
Biofuels and Biorefinery Information Center

Develop a biofuels information repository housing data related to all facets of renewable fuels.

Timeline not specified.
Section 232
Modifies Biomass Research and Development Act of 2000

Amends Section 977 of EPAct 2005 and the Biomass Research and Development Act of 2000 to include lifecycle GHG emissions, environmental impacts of RFS, and on-farm biofuels production.
Section 241
Prohibition of Franchise Agreement Restrictions Relating to Renewable Fuel Infrastructure

Amends Title I of the Petroleum Marketing Practices Act (15 U.S.C. 2801 et seq.) to prohibit future franchise agreements from containing any provisions that restricts the ability of stations to sell E85, B20, or renewable diesel, including installing a renewable fuel pump or tank, converting an existing tank or pump for renewable fuel use, advertising the sale of any renewable fuel, selling renewable fuel on the premises, purchasing renewable fuel, listing renewable fuel availability prices, and allowing for payment of renewable fuel with a credit card.

Effective immediately.
Section 242
Reports on Market Penetration of FFVs and E85 Availability

Requires annual reports to Congress on the market penetration of FFVs and a related bi-annual report on the feasibility of installing E85 infrastructure in areas where FFV penetration has reached 15%.

Annual and bi-annual reporting effective immediately.
Section 243
Dedicated Ethanol Pipeline Feasibility Study

Requires a study to assess the feasibility of ethanol pipelines including economics, market risk, existing or potential barriers, regulatory options to mitigate risk and other factors.

On July 19, 2010 DOE issued the Report to Congress: Dedicated Ethanol Pipeline Feasibility Study.
Section 244
Renewable Fuel Infrastructure Grants

Authorizes a program to provide grants for infrastructure development for renewable fuel blends of more than 10% but not greater than 85% ethanol. The program includes technical and marketing assistance. Also authorizes a pilot program to establish fueling infrastructure corridors. Authorization is $200 million annually for 2008-2014 ($1.4 billion authorized).

Timeline not specified.

Establishing program requires appropriation.
Section 245
Biofuels Transportation Infrastructure Adequacy

Requires a study of the adequacy of existing transportation modes for domestically produced biofuels.

180 days from enactment.
Section 246
Federal Fleet Refueling Centers

All federal agencies must comply. DOE to report on progress.
Requires each federal agency to install at least one renewable fuel pump at each federal fleet fueling center. An annual report on progress is required.

Refer to the Federal Energy Management Program Guidance: Requirements for Installing Renewable Fuel Pumps at Federal Fleet Fueling Centers under EISA Section 246

Compliance by January 1, 2010.
Section 247
Standard Specification for Biodiesel and Biodiesel Blend Inspection and Enforcement Program

Directs EPA to initiate a rulemaking to develop fuel standards for B5 and B20 if ASTM International has not developed standards within the year. EPA will develop an inspection and enforcement program for blends.

Begins one year from enactment if standards have not been developed by ASTM International.

Requires rulemaking.

ASTM International developed ASTM D7467 Standard Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20), while conventional diesel fuel ASTM D975 specifications allow for biodiesel concentrations of up to 5%.
Section 248
Biofuels Distribution and Advanced Biofuels Infrastructure

Authorizes a research, development, and demonstration program to test the physical and chemical properties of biofuels as they relate to existing and new distribution infrastructure.

Timeline not specified.

Requires appropriation.
Section 651
Lightweight Materials Research and Development

Authorizes a program to assess how the weight of vehicles may be reduced and the cost of light-weight materials may be reduced to improve fuel efficiency without sacrificing safety. Authorizes $80 million for 2008 to 2012.

Effective 2008-2012.

Requires appropriation.
Section 654

Authorizes DOE to award competitive cash prizes to advance the research, development, demonstration, and commercial application of hydrogen energy technologies. Amends Section 108, EPAct 2005 by adding this provision.

The H-Prize is managed by DOE's Hydrogen, Fuel Cells & Infrastructure Technologies Program and administered by the Hydrogen Education Foundation. See the H-Prize website for details.
Section 1131
Increased Federal Share for CMAQ Projects

DOT, with state discretion
At the discretion of the state, for funds obligated in FY 2008 or 2009, the state share (20%) for Congestion Mitigation and Air Quality (CMAQ) projects may be waived and the federal share may fund up to 100% of the project cost.