• Background: Energy independence is an environmental and security issue
• Recent Legislation: 2005 and 2007 Energy bills

Background

• For policy makers, energy independence is primarily a security issue because many oil producing states use their oil reserves as a political weapon. However, the public concern over of climate change has given energy independence a new meaning.
• Since the mid 20th century, the United States has guaranteed military protection to the Saudi royal family in exchange for access to cheap, Saudi Arabian oil and a regional ally. Despite the agreement that stretches back to Franklin Roosevelt's presidency, oil prices have more than septupled since 1998 ($10 per barrel). After oil prices climbed above $50 per barrel, Crown Prince Abdullah agreed to spend $50 billion over the subsequent 5 years to increase oil output. President Bush and the Prince issued a joint statement reaffirming their cooperation in securing America's oil. (Source: The Economist)
• Energy independence became a pressing issue during the 2004 presidential elections as world demand for oil jumped and oil prices soared. Although similar patterns have emerged over the past several decades, the recent price spike highlighted America's dependence on foreign oil. The candidates responded by drafting an plan for energy independence. George W. Bush's plan involved increasing domestic oil production. John Kerry planned to rely chiefly on conservation and the development of renewable sources.

Recent Legislation

• In 2005, President Bush signed into law the Energy Policy Act, which among other provisions, provides tax incentives for clean coal, nuclear, and renewable energy. The 2005 House Energy bill energy bill was highly criticized for effectively subsidizes the oil and gas energy and does nothing to stop SUVs and Hummers from escaping fuel-economy standards.
• As the Democrats took the house in the 2006 midterm elections, incoming Speaker Nancy Pelosi established the Select Committee on Energy Independence and Global Warming under the "New Direction Congress". House Democrats have introduced a number of bills that are addressing energy independence by setting new efficiency standards and offering incentives for investments in renewable energy. The Senate Democrats passed an energy bill that would improve efficiency standards in American vehicles and includes anti-price-gouging rules for oil companies and farmer subsidies for corn-based ethanol (which has proven to be environmentally unsustainable). It also allows the government to sue members of the Organization of the Petroleum Exporting Countries for forming a cartel. This bill has been criticized for too closely resembling the Republican effort in 2005.
• In August 2007, The House passed a wide-ranging energy bill that required most utilities to produce 15 percent of their electricity from renewable sources (wind and solar). A bill has also passed in the Senate and now the two houses are working to reconcile the different bills. President Bush has threatened a veto because it does nothing to encourage increased domestic production of oil and gas.