America’s new energy goal – requiring that 25% of energy used by the year 2025 be provided from renewable resources- was signed into law today by President Bush. U.S. Congress and Cabinet officials joined the president for the formal signing at the U.S. Department of Energy headquarters this morning.
The measure expresses not only the “25 by ’25” objective but also that the nation continue to produce safe, abundant and affordable food, feed and fiber.
Co-Chairman Bill Richards said congressional adoption of the '25 by '25' vision and it's enactment by President Bush show "bold leadership in addressing the challenge of our future energy needs. Their action reflects the desire by the American people to improve our national security by reducing our dependency on foreign oil, enhancing our environment and boosting our economy, particularly in rural areas."
According to the University of Tennessee Department of Agricultural Economics, the 25 by '25 goal will provide:
• An increase of $700 billion in new economic activity annually by 2025.
• Four to five million new jobs.
• A reduction in oil consumption by 2.5 million barrels per day - 10 percent of U.S. projected consumption in 2025.
• A reduction in greenhouse gas emissions by 1 billion tons - two thirds of all projected emissions growth by 2025.
• An estimated cumulative savings in government payments of $15 billion dollars. This does not include potential savings in fixed/direct or Conservation Reserve Program (CRP) payments.
• A decrease in gasoline consumption by 59 billion gallons in 2025.
• Enough energy from biomass, wind, solar geothermal and hydro sources to replace the growing demand for natural gas, diesel and/or coal-generated electricity.
• A significant decrease in the nation's reliance on fossil fuels and foreign oil, enhancing national security.
The energy bill also raises fuel efficiency standards for cars and light trucks by 40 percent and raises renewable fuels standard to 36 billion gallons by 2022. Furthermore, the bill requires greater energy efficiency of refrigerators, freezers and dishwashers, and a 70 percent increase in the efficiency of light bulbs.
The new law also requires energy efficiency improvements in federal building standards for construction of new commercial buildings with an aim that they produce as much electricity as they use. House Speaker Nancy Pelosi (D-CA) said that "with the stroke of a pen" the United States is on "a path to save more than 4 million barrels of oil per day by 2030 and cut greenhouse gas emissions by about 25 percent."