TheWeekInCongress.com
Week Ending June 27, 2005
HR 6 to provide and Energy Policy for the United States, and for other purposes.
BRIEF
The bill sets forth the Energy policy that the US will follow over the next few years.
The House and now the Senate are basing their decisions on some formidable facts from the USEIA (US Energy Information Administration) that paint a picture of rocketing demand world-wide and diminishing resources also world-wide, but with the added twist that the US and North America may be sitting on enough energy resources to become free from foreign oil and to do so in less than 20 years.
Whereas the House bill leaned towards grants and incentives for the development of fossil fuel resources the Senate bill, supported by numerous amendments, would have increased the role of renewable energy sources as a solution to higher oil-based energy prices and diminishing supplies. In general, amendments from the House and Senate looked towards reducing dependency on foreign oil, moving to increase the percentage of alternative fuels such as ethanol and other biologically created fuels in the fuel supply, and protecting the environment. Sugar, mustard seeds, animal waste methane and ocean energy are among the newer prospects for renewable energy production along with a program of grants to support that effort. Some provisions and amendments, however, conflicted. While a transition to natural gas usage or Liquid Natural Gas usage is nothing new, the knowledge that the US holds trillions of gas units in deposits off all three US coasts led to a provision that would allow gas and oil exploration in the Gulf of Mexico and outer continental shelf for the purpose of taking inventory of US resources. Florida Senators, not certain that the provision would be exclusive only to exploration and inventory and might open the door to potential environmental damages should those resources be tapped, offered an amendment to remove the exploration provision but the amendment was defeated. Exploration in the Alaskan National Wildlife Refuge remained an element in the bill with supporters reassuring environmental concerns that new technology has diminished environmental damage to nearly zero but the provision allowing drilling in ANWAR was removed in the conference. (Changes made in conference: Although tax incentives ranging to a reported $14 billion would provide some motivation to further develop alternative energy sources the conference committee sided moreso to the House version where most financial incentives would go to oil and gas exploration. Those fossil fuel companies are also relieved of liability for ecological damage on public lands.
Elimination of the proven carcinogen, MTBE, from the fuel supply was not in the House amendment process but the Senate succeeded in adding that provision. (Changes made in Conference: The Conference committee removed the provision that would have protected MTBE manufacturers from the legal responsibility of cleaning up MTBE pollution.)
Climate change, building giant Liquid natural gas storage facilities and getting paid back for spiked electric charges to California residents in 2000 and 2001 were larger issues taken on in the Senate amendment process. The amendments regarding climate change would have required the President to produce the original reports and data on climate change along with any reports and data he may have modified, would establish a sense of the Senate on Global Warming and would accelerate reducing greenhouse emission from the US. Only the sense of the Senate amendment passed. The Senate succeeded in requiring approval from State governors before the federal government can build a LNG storage port or facilities and amendment to light a fire under the Federal Energy Regulatory Commission investigation into “complete its investigation and order refunds on the unjust and unreasonable rates charged to California during the 2000-2001 electricity crisis” passed by voice vote. (Changes made in Conference: The final bill gives the US government final say in where a LNG storage port would be constructed.)
In the final stage the bill would continue to extend Daylight Savings Time through November with the idea longer daylight uses less energy. Another petroleum saver that prevailed through conference is a provision that would increase the percentage of ethanol required in gasoline. By and large the tax breaks and incentives for energy companies are broken down roughly to 60% for fossil fuels and the nuclear industry and 40% for renewables. The total breaks and incentives in the bill are around $15 billion. Some tax breaks would be applied to the oil industry when production is stalled and another would allow for quicker write off of expenses for exploration. A similarly expedited write off provision would apply to electric grid improvements. The gas industry would be jolted into increasing expansion of gas lines to communities and businesses by a provision that actually shortens the time they have to write off the expense for connecting those lines to their customers.
The amounts the industries get in tax breaks/incentives are $3 billion for coal, $3 billion for electric and $2.6 billion for oil and gas with $1.3 billion or alternative vehicles gasoline. $1.3 goes to conservations and renewables, and renewable fuels such as wind and solar used in electricity will take up to $3.2 billion. Individuals, too, would see some tax incentives for more energy efficient homes as would appliance makers for more energy efficient appliances.
The electric grid, proven recently to be more of a patchwork than a seamless system that transfers electrical energy around the country, is to be improved through mandatory rules applied to the utility companies that use the grid.
Attempts to protect coastal habitats from the impact of offshore oil drilling and exploration ultimately failed leaving in its wake federal financing for deep water exploration and drilling in otherwise prohibited areas in the Gulf of Mexico and elsewhere.
The following is a breakdown of HR 6 provisions and insights reported when the House completed its work on the bill on April 21, 2005. Links to House and Senate amendments and votes can be found in the 'More Information' section below.
A North American Problem Not Just America’s Problem.
Recent meetings between Canada, Mexico and the US and recommendations by the USEIA suggest that policy makers will move towards a continental view of energy problems and solutions rather than just in America.
Congress considered that energy self-sufficiency is a shared interest among North American countries and that each has a significant part to play in reducing energy reliance on potentially unstable governments across the sea. Each country, however, must maintain its sovereignty. To deal with the possibilities and challenges of a Continental energy plan the bill would create the U.S. Commission on North American Energy Freedom. The President would appoint the 16 members and the chairman. Members could be from Mexico and Canada.
How Much Oil is Used?
The EIA said in 2004 that America’s oil consumption will rise from 19.6 million bpd (barrels per day) in 2001 to 28.3 million bpd in 2025. Putting the US consumption figures in perspective; Canada and Mexico used a combined 4 million bpd in 2001 and will use a combined 6.3 million bpd in 2025.
How Much is Produced or Could be Produced in North America?
All three North American countries produce oil but the sources (with the exception of Mexico) are not as prolific or easy to extract as resources in other countries. Oil production in North America was 15.4 million bpd in 2001 and should rise only to 18.3 million bpd in 2025, but North America harbors 492.7 billion barrels (bbls) of oil equaling about 16.8% of the world resources. The 492.7 bbls does not include significant resources in US shale rock and Canadian sand. Not including the shale and sand oil, North America could rely on its own oil resources for an average of 48 years.
What Energy Resources Does North America and the U.S. Hold?
America sits on 2 trillion of the world’s 2.75 trillion barrels of oil from oil shale rock from which it could, given a successful and economically viable way to extract it, produce 10 million bpd for over 100 years. Canada has 1.7 trillion barrels of oil in its Alberta oil sands and could also produce 10 million bpd for 100 years. The US also has 80 billion barrels of heavy oil resources and 400 billion barrels of conventional oil that could produce 60 billion barrels using advanced CO2 recovery technology. In oil sand the US has 54 billion barrels in place. In the Alaska National Petroleum Reserve there are 9.3 billion barrels and in the Arctic National Wildlife Refuge (Coastal Plain) that this bill would have opened for exploration, development and production has more than 10 billion barrels.
The EIA said that 12 to 18 billion barrels could be produced from the Canadian Atlantic and other Canadian sources. Mexico has extensive oil resources.
Oil and natural gas (of which the US controls offshore resources of about 300,000 trillion cubic feet) are used to produce electricity and move vehicles but coal is the Nation’s energy strength the USEIA said. The US holds close to 300 billion short tons of coal or 25 percent of the world resources that are economically recoverable. The US is expected to use 1.6 billion short tons of coal in 2025.
World Supply and Demand.
World production of oil has peaked and China and India are consuming more and more crude oil. Oil prices are set on world demand so it is expected that prices will continue to rise. The solution is to reduce the reliance on oil as a primary fuel.
What other Energy Resources Are Available in the U.S.?
Biomass, the EIA said, equals 48 percent of the renewable energy market production where renewable energy in general is at about 6 percent of the total energy produced and bought. Hydroelectric equals about 45 percent of renewable energy, geothermal 5 percent, wind 2 percent and solar 1 percent. The US resource for renewable energy resources is vested in the 2.25 billion acres of land and water that makes up US public land.
Energy and National Security
Congress also looked at a report from the Department of Energy’s Sandia National Laboratories in New Mexico that illuminated how reliance on foreign oil has potential national security risks. Primarily the report notes that most of the countries that export oil and natural gas to the US are unstable or potentially unstable. Terrorist interruption of that oil flow could increase not only the availability of the petroleum but an increase in prices due to reduced supply against a stable or increasing demand.
The Benefits of Increasing Energy Production in the U.S.
Noting, too, a report from the Clinton Administration, Congress finds that the US imported 4.7 billion barrels in 2004 of which only 1.4 billion barrels came from Canada. Should the additional 3.3 billion imported barrels eventually be produced here and sold at $40 per barrel the US GDP would increase by $336 billion and create over 1.7 million jobs earning around $50,000 per year, the report alleged. Royalty payments would equal $16.5 billion yearly and 25 percent of the US trade deficit could be almost erased.
The Focus of the Bill.
Where the oil comes from and what can be done to reduce reliance on oil and fossil fuel energy by replacing that use with energy efficiency and other energy sources such as nuclear and renewable energies is the focus of the bill. The bill also would create the US Commission on North American Energy Freedom to make recommendations for a coordinated and comprehensive North American energy policy that will achieve energy self-sufficiency by 2025.
The titles of the bill cover energy efficiency, renewable energy, oil and gas, coal, energy on Indian land, nuclear energy, vehicles and fuels, hydrogen, research and development, electric, energy tax incentives, ethanol and motor fuels, Department of Energy and a variety of studies including an oil and natural gas inventory, energy efficiency standards, the impact of telecommuting and oil by-pass filtration.
Other titles include the ‘Set America Free Act’ to reduce reliance on foreign oil, a pilot study in the Grand Canyon testing the viability of hydrogen powered transportation and drilling in the Arctic National Wildlife Reserve.
Sponsor: Representative Joe Barton (R-TX-6th)
Vote: The bill passed the House 249 to 183 with 3 not voting (April 21, 2005) (RC132) The Senate completed amending the bill on June23, 2005 but postponed a vote on passage for Tuesday, June 28, 2005 at 9:45 a.m.). The House passed 275 to 156 (RC 445) the changes made in conference with the Senate on July 27, 2005) and the Senate, on the same day also agreed to the conference report (RV 213)
Cost to the taxpayers: CBO estimates the bill would reduce direct spending by $1.1 billion from 2006 to 2010 and reduce revenues by $4 billion over the same period. Cost to the taxpayers is around $35 billion over the next five years.
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MORE INFORMATION
THE WEEK IN CONGRESS BREAKDOWN
THE US COMMISSION ON NORTH AMERICAN ENERGY FREEDOM
BACKGROUND AND NEED FOR THE BILL FROM THE COMMITTEE REPORT
ELEMENTS OF A BALANCED ENERGY POLICY
SECTION BY SECTION ANALYSIS OF THE BILL FROM THE SENATE COMMITTEE REPORT
g. TITLE VII VEHICLES AND FUEL
i. TITLE IX RESEARCH AND DEVELOPMENT
j. TITLE X DEPT OF ENERGY MANAGEMENT
k. TITLE XI PERSONNEL AND TRAINING
BACKGROUND AND NEED FOR THE BILL
Nearly five decades ago energy demand in the United States began exceeding domestic supply. That trend has increased over the years as the Nation has grown in population and expanded its economy. Current DOE projections indicate that the disparity between energy supply and demand will continue to grow. The widening gap between supply and demand, accompanied by reliance on foreign sources to close that gap, has created profound concerns in the Congress over the Nation's energy security. The supply and demand gap places pressure on the market and leads to volatile prices, exacerbating economic problems. Coupled with those concerns is the recognition that meeting demand must be accomplished in an environmentally sound manner. A combination of energy production, conservation, efficiency, and development of new technologies is the bedrock of a sound energy policy aimed at closing the supply and demand imbalance. Such a policy is necessary to ensure the country's continued growth and prosperity and to protect our national security.
Today, U.S. oil production is at a 50-year low and continues to decline, placing increasing importance on imports, often from unstable regimes. Oil imports accounted for roughly 60 percent of U.S. consumption in 2002, and nearly a third of the current trade deficit. Currently, the United States consumes roughly 19 million barrels of oil per day (mmbd)--12 million in the transportation sector alone. Demand in the transportation sector is projected to grow to more than 20 million barrels per day by 2025. The growing demand for petroleum used in transportation is of particular concern to the United States for a number of reasons, including energy security issues related to increasing dependence on foreign oil, and environmental concerns over emissions of air pollutants and greenhouse gases resulting from increased oil usage.
Projected growth in domestic production of natural gas and coal provides a limited counterbalance to the dismal oil outlook. Over the next 20 years, natural gas production is expected to grow by 1.5 percent per year, and coal by 1.5 percent per year. Natural gas currently represents 24 percent of all energy consumed in the U.S. and supplies nearly one-fifth of all electricity generation. Coal remains the primary, and most efficient, fuel for electricity generation, currently accounting for over half of all electric generation in the U.S., and will remain so through 2025. Even though production is expected to grow in the two sectors, demand for natural gas is projected to outpace supply, and neither fuel is able to offset the overall gap between energy supply and energy demand in the United States.
Despite the growing dependence on imports, the Nation has a wealth of domestic resources that are currently untapped. The United States currently has an estimated 22.4 billion barrels of proven oil reserves--12th highest in the world--with over 65 percent of proven oil reserves concentrated in the Gulf of Mexico and Alaska. A 1999 National Petroleum Council study found that the lower 48 States, including the Gulf of Mexico, hold a tremendous supply of natural gas (1,466 tcf). Obstacles to development of these resources include regulatory hurdles, price volatility, and lack of infrastructure. While the price spikes in 2000 led to a significant increase in gas well drilling activity in 2001, domestic gas producers have not responded to recent higher prices as robustly. U.S. production fell by 2.3 percent in 2002. World market prices for crude oil remain high, but domestic producers need additional incentives to encourage the development of available resources.
Resource development on onshore Federal land administered by the Bureau of Land Management (BLM) provides 5 percent of the Nation's oil production; 11 percent of its natural gas production; 35 percent of its coal production; 20 percent of its wind power production; and 48 percent of its geothermal energy production. In addition to traditional sources of energy, Federal lands provide significant renewable resources, accounting for 17 percent of the Nation's hydropower, 20 percent of its wind power, and 48 percent of its geothermal production. However, various regulatory restrictions and processes hinder full development of all of these resources.
Production on Federal lands and in the OCS can be encouraged through regulatory streamlining and incentives such as royalty relief. Certain renewable energy sources have been provided royalty relief to increase their economic viability. Other energy sources such as geothermal and OCS oil and gas production, still face a significant financial burden that prevents increased
development. Hydropower projects on Federal lands can take years to license, hampering long-term investment and stability.
In addition to their potential for providing new domestic energy production, Federal lands could also play an important role in developing a comprehensive interstate delivery system for the Nation's energy supplies. Streamlining the permitting and siting of energy infrastructure investments on Federal lands will add to the reliability of energy supplies and help to reduce the cost of domestic production.
There are abundant energy resources available for production on Indian lands. Development of those resources must be encouraged.
Currently, nuclear power provides over 20 percent of our electricity. Reauthorization of the liability and indemnification provisions of the Price-Anderson Act is critical for protection of consumers as well as stability in the industry. The importance of continued investments in nuclear energy cannot be overstated. Only nuclear and hydroelectric power can provide significant levels of power with zero air emissions. While renewables can and must play a role in a diverse energy mix, only nuclear power offers significant long-term potential to address global climate concerns.
An important aspect of accessing available domestic energy supplies will be the assurance that supplies are able to reach the growing demand. A 1999 study published by the INGAA Foundation estimates that $47.7 billion in new investment in pipeline infrastructure is needed to deliver new gas supplies.
Billions of dollars need to be invested in the national transmission grid to ensure reliability and to allow markets to function. Siting challenges, including a lack of coordination among States, impede the improvement of the electric system.
Regulatory uncertainty in the electricity industry also hinders needed infrastructure investment. Lack of certainty as to the viability of market structures and the financial stability of market participants impedes access to and increases the cost of capital for the electricity sector. Uncertainty in the marketplace about the rules and regulations that will govern generation and transmission facilities contributes to financial instability and endangers reliability of service.
Over the past fifteen years, energy policy has evolved toward more open access to the transmission grid and increased competition. The Energy Policy Act of 1992 facilitated the development of a competitive electric sector by allowing non-utility power producers to compete in wholesale markets. Utilities were required to open their transmission lines to these new competitors. These changes in the law allowed development of the merchant generator and power marketer sectors. In 1996, FERC issued Orders 888 and 889, which required jurisdictional public utilities to file an open access transmission tariff with FERC and encouraged the formation of Independent System Operators. In December 1999, FERC issued Order 2000, encouraging transmission owners to join voluntarily Regional Transmission Organizations that would independently operate the transmission system. In 2002, FERC proposed the Standard Market Design (SMD) as a way to address alleged continued discriminatory transmission practices. The SMD was strongly opposed because of infringement on State commissions' jurisdiction.
A balance between access to the transmission grid for the benefit of competition and access to the transmission grid to provide reliable, efficient service to retail consumers is the appropriate goal of energy policy. Clear regulatory rules and the minimization of barriers are required to achieve that goal.
In addition to increasing domestic supplies of energy, reducing demand and using supplies wisely is an essential part of a balanced national energy policy. According to the Energy Information Administration, as energy prices increased between 1970 and 1986, energy intensity (measured by energy use per dollar of GDP) declined at an average annual rate of 2.3 percent. About half of that decrease comes from efficiency measures. Energy intensity is projected to continue its decline at an average annual rate of 1.5 percent through 2025 as continued efficiency gains and structural shifts in the economy offset increasing energy demand.
One of the key roles the Federal Government plays in conservation is ensuring the efficient operation of Federal facilities. The annual energy bill for the Federal Government is about $9.6 billion. However, through the Federal Energy Management Program, the Federal Government spent $2.3 billion less in real dollars for energy for its buildings in FY 2000 compared to FY 1985. The Energy Policy Act of 1992 set a 20 percent energy reduction goal (per square foot) for Federal facilities by FY 2000 relative to FY 1985. Preliminary FEMP data indicated that this goal was exceeded by 2.7 percent additional savings relative to the FY 1985 baseline. The current goals of the FEMP program, established in 1999 by Executive Order 13123, are to reduce energy consumption in Federal facilities by 30 percent per square foot in 2005 and 35 percent in 2010 relative to 1990 levels.
On the consumer side, efficiency standards for homes and appliances have also added to the improved use of scarce energy resources. The National Appliance Energy Conservation Act (NAECA), enacted in 1987, provided the framework for establishing minimum energy efficiency standards for more than two dozen types of appliances and equipment. Congress expanded the products covered by NAECA in 1988 and 1992. DOE estimates that the 12 standards developed by the Department have saved consumers over $25 billion in cumulative electricity costs. A 2001 study by the American Council for an Energy Efficient Economy (ACEEE) estimated that standards in place through the year 2000 reduced U.S. electricity use by 2.5 percent and reduced peak demand by approximately 21,000 megawatts. There are several appliances and equipment types not currently covered by Federal standards that offer the significant energy savings potential in the future. Additional incentives are needed to encourage new development in these areas.
The third aspect of a balanced national energy policy looks to the long-term future. New sources of energy and improved technologies for existing resources will lead to long-term energy
security. Research and development opportunities range from new advanced nuclear technologies to improved conductivity of transmission lines to improved efficiency of light bulbs.
President Bush announced a $1.2-billion Hydrogen Fuel Initiative to develop hydrogen-powered fuel cells during his State of the Union speech on January 28, 2003. This initiative will develop the technology needed for commercially viable hydrogen-powered fuel cells to power cars, trucks, homes, and businesses. Central to the development of hydrogen as a fuel source will be research into the technologies and infrastructure needed to produce, store, and distribute hydrogen fuel.
Nuclear cogeneration of hydrogen is a new opportunity for nuclear power, along with deployment of the next generation of nuclear reactors. New nuclear reactors offer the ability to provide energy security, add to fuel and technology diversity, and meet clean air goals. The next generation of reactors is safer and more efficient, and is vital to the nation's energy supply. A new and aggressive program into innovative nuclear technologies can foster the development of a new generation of nuclear powerplants to meet future demand.
Innovation for the future also includes improving on technologies for existing fuel resources. New advances in the oil and gas industry have led to less intrusive drilling, improved success in drilling wells, and stronger stewardship of the environment. Clean coal initiatives have resulted in drastic reductions in emissions without limiting the ability of coal to serve as the most reliable and efficient means of electric generation. Looking to the future, clean coal research will ensure that new powerplants meet high standards of economic viability and environmental protection.
Continuing innovation also is crucial to improve the economic viability of producing energy from new supplies of woody biomass produced from treatments aimed at improving the health of our forests on Federal and Indian lands. Federal land managers and other experts have recommended removing some of the slash, brush, pre-commercial thinnings and other non-merchantable wood and plant material from forests to improve forest health and reduce the threat of uncharacteristic wildfire. But land managers have indicated that in many regions of the country there currently are few economically viable enterprises using this type of biomass and that this increases the costs of forest restoration treatments. The two grant programs authorized in Title II, Subtitle C, are designed to encourage the production of energy from biomass produced from restoration treatments on Federal and Indian lands and, ultimately, to reduce the costs of those treatments.
The Committee believes that some of the newest, most innovative technologies for energy production and use, those that are cleaner and more efficient compared to existing commercial technologies, need a jump-start to get to the marketplace more quickly. The Committee believes that the provisions contained in this legislation, especially when combined with the tax provisions to be offered from the Finance Committee, are the genesis for improving the national security of this Nation, enhancing the environment, strengthening self-government for Native American communities, decreasing dependence on foreign sources of energy, aiding the economy, and diversifying the energy base of the country.
Section 101. Energy and water saving measures in congressional buildings
Section 101 establishes requirements for energy and water savings in Congressional Buildings.
Section 102. Energy management requirements
Section 102 establishes new energy conservation goals for Federal buildings. The section changes the baseline for measuring Federal energy performance from 1985 to 2004 and requires a 20 percent improvement over 2004 levels by 2015. The section provides exclusions from these requirements under certain conditions and directs the Secretary to issue guidelines that establish criteria for excluding buildings from these requirements. Agencies are authorized to retain funds appropriated for energy expenditures that are not spent because of energy savings in agency buildings and to use those funds for energy efficiency and renewable energy projects.
Section 103. Energy use measurement and accountability
In order to encourage greater energy efficiency and energy cost reduction by Federal agencies section 103 requires Federal buildings to be metered or sub-metered by October 1, 2012, using advanced meters, to the maximum extent practicable. Agencies must also develop plans to use real-time electricity consumption data to reduce energy costs and consumption.
Section 104. Procurement of energy efficient products
Section 104 requires Federal agency managers to purchase highly energy efficient products for use by those agencies.
Section 105. Energy savings performance contracts
Section 105 extends the Energy Savings Performance Contracts program through FY 2016.
Section 106. Voluntary commitments to reduce industrial energy intensity
Section 106 encourages business and industry to enter into voluntary agreements with the DOE to reduce energy intensity by not less than 2.5 percent annually.
Section 107. Federal building performance standards
Section 107 requires the Secretary to revise Federal building energy efficiency performance standards.
Section 108. Increased use of recovered mineral component in federally funded projects involving procurement of cement or concrete
Section 108 requires Federal agencies to fully implement all procurement requirements and incentives that provide for the use of cement and concrete incorporating recovered mineral component in cement or concrete projects.
Section 121. Weatherization assistance
Section 121 authorizes the expenditure of $1.23 billion for Weatherization Assistance for fiscal years 2006 through 2008.
Section 122. State energy programs
Section 122 requires the Secretary to assist States in reviewing and revising state energy conservation plans and in establishing State energy efficiency goals.
Section 123. Energy efficient appliance rebate programs
Section 123 provides funding for State grant programs to provide rebates to consumers purchasing residential Energy Star products. It authorizes $50 million for each of fiscal years 2006 through 2010.
Section 124. Energy efficient public buildings
Section 124 provides for grants to States to assist units of local government in improving the efficiency of public buildings and facilities.
Section 125. Low income community energy efficiency pilot program
Section 125 allows the Secretary to provide grants to units of local government, private or non-profit community development organizations, and economic development entities of Indian tribes to improve energy efficiency, develop alternative, renewable and distributed energy supplies and to increase energy conservation in low-income rural and urban communities.
Section 126. State technologies advancement collaborative
Section 126 directs the Secretary, in cooperation with the States, to establish a program for research, development, demonstration, and deployment of technologies in which there is a common Federal and State energy efficiency, renewable energy, and fossil energy interest.
Section 127. Model building energy code compliance grant program
Section 127 directs the Secretary to carry out a program to provide grants to each State that the Secretary determines, with respect to new buildings in the State, achieves at least a 90-percent rate of compliance (based on energy performance) with the most recent model building energy codes. Funds may be used to carry out activities relating to the implementation of building energy codes and building practices that exceed efficiency requirements of the most recent model building codes. It authorizes the expenditure of $25 million for each of fiscal years 2006 through 2010.
Section 131. Energy star program
Section 131 establishes a voluntary program within the DOE and the Environmental Protection Agency (EPA) to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of, or other forms of communication about, products and buildings that meet the highest energy conservation standards. The section requires regular updating of Energy Star requirements through a transparent process that includes solicitation of comments from interested parties prior to establishment of new Energy Star categories, specifications or criteria along with responses to such comments; and allows 12 months of lead time before such changes take effect unless such time period is waived or reduced by mutual consent between EPA or DOE and the affected parties.
Section 132. HVAC maintenance consumer education program
Section 132 directs the Secretary to carry out a program to educate homeowners and small business owners concerning the energy savings from properly conducted maintenance of air conditioning, heating and ventilating systems. Additionally, the section authorizes the Small Business Administration to work with the DOE and EPA to provide energy efficiency information to small business.
Section 133. Public energy education program
Section 133 directs the Secretary to convene an organizational conference for the purpose of establishing an ongoing, self-sustaining national public energy education program.
Section 134. Energy efficiency public information initiative
Section 134 directs the Secretary to carry out a comprehensive national program, including advertising and media awareness to inform consumers about the need to reduce energy consumption, the benefits to consumers of reducing energy consumption, the importance of low energy costs to economic growth and job formation, and practical, cost-effective measures consumers can take to reduce consumption of energy. $90 million is authorized for each of fiscal years 2006 through 2010.
Section 135. Energy conservation standards for additional products
Section 135 establishes energy conservation standards and testing requirements for the following products: illuminated exit signs; torchiere lighting fixtures; distribution transformers; traffic and pedestrian signals; commercial unit heaters; medium base compact fluorescent lamps; dehumidifiers; pre-rinse spray valves; and mercury vapor lamp ballasts. The section also directs the DOE to prescribe standards for: refrigerated beverage vending machines; suspended ceiling fans and the standby power mode of battery chargers and external power supplies. The legislative standards reflect consensus agreements that have been negotiated by the trade associations representing the manufacturers of the products and environmental, energy efficiency and consumer groups. The section authorizes the Secretary to set standards for electricity use for residential furnace fans, to set more than one standard for a product that serves more than one function, and, under specified conditions, to use an expedited rulemaking process to establish a standard. Finally, the section provides that existing State and local standards for a new product added by the section are not preempted until the Federal standards for such product goes into effect.
Section 136. Energy conservation standards for commercial equipment
This section establishes conservation standards and testing requirements for: commercial air conditioning and heat pumps; commercial refrigerators and freezers; commercial clothes washers; and commercial ice makers. The standards reflect agreements that have been negotiated by the trade associations representing the manufacturers of the products and environmental, energy efficiency, and consumer groups.
Section 137. Expedited rulemaking
Section 137 amends the Energy Policy and Conservation Act to make conforming changes related to the expedited rulemaking in subsection 135.
Section 138. Energy labeling
Section 138 directs the FTC to undertake a rulemaking to consider the effectiveness of the consumer products labeling program in assisting consumers in making purchasing decisions and improving energy efficiency; and changes to the labeling rules (including categorical labeling) that would improve the effectiveness of consumer product labels and directs the Secretary or the FTC to prescribe labeling requirements for products for which standards are set by rule or by statute in section 135.
Section 139. Energy efficient electric and natural gas utilities study
Section 139 directs the Secretary, in consultation with the National Association of Regulatory Utility Commissioners and the National Association of State Energy Officials, to conduct a study of State and regional policies that promote cost-effective programs to reduce energy consumption (including energy efficiency programs) that are carried out by utilities subject to State regulation and non-regulated utilities. This section also requires the Secretary to report the findings of the study and any recommendations on model policies to promote energy efficiency programs.
Section 140. Energy efficiency pilot program
Section 140 directs the Secretary to establish a pilot program under which the Secretary provides financial assistance to at least 3, but not more than 7, States to carry out pilot projects in States for planning and adopting statewide programs that encourage energy efficiency and energy consumption reductions. States with adopted programs may use funds for expanding and improving their programs. It authorizes $5 million in each of fiscal years 2006 through 2010.
Section 141. Energy efficiency resource programs
Section 141 amends the Public Utilities Regulatory Policy Act of 1978 to require State regulatory bodies, within 3 years after enactment, to consider implementing energy efficiency or other demand reduction programs.
Section 151. Reduction of dependence on imported petroleum
Section 151 directs the President to develop and implement measures in end-uses throughout the economy of the United States sufficient to reduce total demand for petroleum in the United States by 1,000,000 barrels per day. It requires the President to report annually on progress toward meeting that goal.
Section 161. Public housing capital fund
Section 161 allows the Public Housing Capital Fund to include use for certain improvements for energy efficiency, including integrated utility management and capital planning and third party contracts similar to Energy Savings Performance Contracts (ESPCs).
Section 162. Energy efficient appliances
Section 162 requires public housing agencies to purchase Energy Star or FEMP-designated products where cost-effective.
Section 163. Energy efficiency standards
Section 163 updates efficiency standards used in the Cranston-Gonzales National Affordable Housing Act low-income housing programs to current best codes and practices.
Section 164. Energy strategy for HUD
Section 164 requires the Department of Housing and Urban Development to develop and implement an integrated energy strategy for public and assisted housing and requires a report to Congress and updates of the report every two years.
Section 201. Assessment of renewable energy resources
Section 201 directs the Secretary of Energy to publish a report, based on his most recent assessment, containing a detailed inventory of the available quantity and characteristics of renewable energy resources in the United States.
Section 202. Renewable energy production incentive
Section 202 extends funding authorization for incentive programs for producing electricity from renewable energy sources, expands eligibility to cooperatives and municipal utilities, and includes landfill gas as an eligible energy resource. The section also provides that if funds are not available for full payments in a given calendar year, 60 percent of available funds shall be assigned to solar, wind, geothermal, and closed-loop biomass.
Section 203. Federal purchase requirement
Section 203 requires the Federal Government to try to purchase not less than 3 percent renewable electric energy in fiscal years 2007 through 2009, increasing to not less than 7.5 percent renewable electric energy in fiscal year 2013 and thereafter. The section also provides a double credit for renewable electric energy produced and used on-site at a Federal facility, as well as for renewable energy produced on Federal or Indian lands and used at a Federal facility.
Section 204. Renewable content of motor vehicle fuel
Section 204 mandates that motor vehicle fuel sold or dispensed to consumers in the contiguous United States contain renewable fuel as defined by this section. Under the mandate 4 billion gallons of renewable fuel must be used in 2006 rising to 8 billion gallons in 2012. After 2012 the annual volume of renewable fuel must be at least equal to the percentage of renewable fuel, relative to the total number of gallons of gasoline introduced into commerce in 2012. The section also contains provisions relating to participation by small refiners, opportunities for a State or States to waive the program requirements, and provisions for a fuel producer credit and trading program.
Section 205. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement
Section 205 requires the head of each Federal agency to ensure that the agency purchases ethanol-blended gasoline containing at least 10 percent ethanol rather than nonethanol-blended gasoline for use in agency vehicles. The section also requires that Federal agencies purchase biodiesel for diesel fueled vehicles based on a schedule set forth in this section.
Section 206. Data collection
Section 206 requires the Administrator of the Energy Information Administration of the DOE to conduct and publish the results of a survey of renewable fuels demand in the motor vehicle fuels market in the United States on a monthly basis.
Section 207. Sugar cane ethanol program
Section 207 directs the Secretary of Energy to establish a multi-State project designed to study the production of ethanol from cane sugar, sugar cane, and sugar cane byproducts.
Section 208. Modification of Commodity Credit Corporation bioenergy program
Section 208 is self-explanatory.
Section 209. Advanced biofuel technologies program
Section 209 directs the Secretary of Energy, in consultation with the Secretary of Agriculture, to establish a program to demonstrate advanced technologies for the production of alternative transportation fuels.
Section 210. Assistance for rural communities with high energy costs
Section 210 permits the Secretary and the Administrator of the Rural Utilities Service to use authorities provided pursuant to the 1936 Rural Electrification Act and the Consolidated Farm and Rural Development Act, including the deferral, extension, refinancing, restructuring, and reduction of loans made under those Acts, to make grants available to existing rural electric projects in Alaska. The purpose of such grants is to aid electric borrowers serving rural Alaskan communities to reduce consumer rates, maintain reliable service, preserve the economic feasibility of an electric system, and avoid default.
Section 221. Definitions
Section 221 defines the terms used in the subtitle.
Section 222. Assessment
Section 222 authorizes the Secretary of Energy, in consultation with the Secretary of the Interior, to conduct an assessment of the energy needs of the U.S.-affiliated insular areas and submit a report within one year of enactment to Congress that evaluates the strategies or projects with the greatest potential for reducing the dependence of each insular area on imported fossil fuels as
used for the generation of electricity, and, when there is a significant need for distributed energy, identify promising strategies and projects for meeting that need.
Section 223. Project feasibility studies
Section 223 authorizes the Secretary of Energy, in consultation with the Secretary of the Interior, and upon the request of the local electric utility and a commitment by the utility to at least ten percent of the cost, to conduct a feasibility study of a project to implement a strategy or project identified under section 222 as having the potential to--(1) significantly reduce the dependence of an insular area on imported fossil fuels; or (2) provide needed distributed generation to an insular area.
Section 224. Implementation
Section 224 authorizes, upon a determination by the Secretary of Energy, in consultation with the Secretary of the Interior, that a project is feasible under section 223, and a commitment by the local electric utility to operate and maintain the project, such technical and financial assistance as the Secretary determines is appropriate for the implementation of the project.
Section 225. Authorization of appropriations
Section 225 authorizes to be appropriated to the Secretary of Energy: (1) $500,000 for the completion of the assessment under section 222; (2) $500,000 for each fiscal year for project feasibility studies under section 223; and (3) $5,000,000 for each fiscal year for project implementation under section 224. No insular area may receive more than 20 percent of the total funds made available during any 3-year period unless the Secretary determines that providing funding in excess of that percentage best advances existing opportunities to meet the objectives of this subtitle.
Section 231. Definitions
Section 231 defines the terms used in the subtitle.
Section 232. Biomass commercial utilization grant program
Section 232 authorizes the Secretary of the Interior and the Secretary of Agriculture to make grants to offset the cost of purchasing biomass from hazardous fuels reduction and other forest restoration projects on Federal or Indian lands to produce electricity, heat, or transportation fuels. This section authorizes appropriations of $12.5 million to each Secretary for each of fiscal years 2006 through 2010.
Section 233. Improved biomass utilization program
Section 233 authorizes the Secretary of the Interior and the Secretary of Agriculture to make grants to offset the cost of developing or researching proposals to improve or add value to the use of biomass from hazardous fuels reduction and other forest restoration projects. This section authorizes appropriations of $12.5 million to each for each of fiscal years 2006 through 2010.
Section 234. Report
Section 224 directs the Secretaries of the Departments of the Interior and Agriculture to provide a joint report on the interim results of the program no later than 3 years after the date of enactment.
Section 241. Leasing procedures
Section 241 modifies the Geothermal Steam Act to require that all lands to be leased be made available on a competitive basis. If no competitive interest in the lands exists, they can be made available for leasing on a noncompetitive basis for a period of two years. Pending lease applications are grandfathered. The mechanics for this system of competitive leasing is patterned after the Federal onshore oil and gas leasing program.
Section 242. Direct use
Section 242 directs the Secretary to issue a schedule of fees (as opposed to royalties) for direct use geothermal (geothermal used for a purpose other than commercial generation of electricity and not sold--e.g., geothermal steam used for greenhouses). This section also gives the Secretary discretion to provide an exception from the requirement for competitive leasing for land to be used exclusively for direct use if the Secretary follows certain procedures and determines that no competitive interest exists.
Section 243. Royalties
Section 243 requires the Secretary to issue a rule within one year to provide a simplified methodology for calculating royalties on Federal geothermal resources. It requires the Secretary to consider a methodology based on gross proceeds from the sale of electricity and to ensure that the final regulation results in the same level of royalty revenues over a 10-year period as the current regulation. This section also provides that existing leases can be modified on the application of the lessee to conform to the schedule of fees for leases for direct use and to the new simplified methodology for all other leases.
Section 244. Geothermal leasing and permitting on Federal land
Section 244 requires the Secretaries of the Interior and Agriculture to enter into a memorandum of understanding regarding leasing and permitting for geothermal development of public lands and National Forest System lands. It requires a joint data retrieval system for tracking lease and permit applications.
Section 245. Assessment of geothermal energy potential
Section 245 requires the Secretary to update the 1978 Assessment of Geothermal Resources.
Section 246. Cooperative or unit plans
Section 246 clarifies the authority of the Secretary with respect to the creation of cooperative or unit agreements for the development of Federal geothermal resources.
Section 247. Royalty on byproducts
Section 247 provides that the royalty on any byproduct mineral be at the applicable rate contained in the Mineral Leasing Act.
Section 248. Lease duration and work commitment requirements
Section 248 requires the Secretary to establish payments at a level that ensures diligent development of the lease.
Section 249. Annual rental
Section 249 increases the rentals required to be paid on Federal geothermal leases, escalating over time from $1 (for noncompetitive leases) and $2 (for competitive leases) to $5 per acre. This section also modifies the provisions relating to termination of a lease for failure to pay rental.
Section 250. Advanced royalties required for cessation of production
Section 250 provides that a lease will remain in effect if production ceases after coming into production if the lessee pays for an aggregate of not more than 10 years an advance royalty that is the monthly average royalty paid during the period of production. The advance royalty can be credited against future production royalties. There is an exception in cases where the production ceases due to a force majeure.
Section 251. Leasing and permitting on Federal land withdrawn for military purposes
Section 251 requires the Secretaries of the Interior and Defense to submit a joint report on leasing and permitting activities for geothermal energy on Federal land withdrawn for military purposes.
Section 252. Technical amendments
Section 252 makes a series of technical amendments to the Geothermal Steam Act of 1970, replacing the term `geothermal steam and associated resources' with `geothermal resources' throughout the Act, and providing section titles for each section of the Act.
Section 261. Alternative conditions and fishways
Subsection (a) amends section 4(e) of the Federal Power Act to provide that the license applicant and any party to the proceeding is entitled to a determination on the record after opportunity for an agency trial-type hearing of no more than 90 days on any disputed issues of material fact with respect to 4(e) conditions. All disputed issues of material fact raised by any party are to be determined in a single trial-type hearing to be conducted within a time frame established by FERC for each license proceeding. Within 90 days of the date of enactment, the Secretaries of the Interior, Commerce, and Agriculture are directed to establish jointly by rule procedures for the expedited trial-type hearing, including an opportunity to undertake discovery and cross-examine witnesses, in consultation with the FERC.
Subsection (b) amends section 18 of the Federal Power Act to provide the same trial-type hearing requirements with respect to prescriptions sought by a resource agency.
Subsection (c) amends the Federal Power Act by adding a new section addressing alternative conditions and prescriptions. It allows the license applicant or any other party to the license proceeding to propose an alternative condition or prescription. The subsection directs the Secretary of the resource agency to accept the proposed alternative condition or prescription if the Secretary determines, based on substantial evidence provided by the license applicant, any other party to the proceeding, or otherwise available to the Secretary, that the alternative condition provides for the adequate protection and utilization of the reservation (or in the case of a prescription, that the alternative will be no less protective than the fishway initially proposed by the Secretary) and the Secretary concurs with the license applicant's judgment that the alternative condition or prescription will either cost significantly less to implement or result in improved operation of the project works for electricity production. The concurrence by any Secretary of the license applicant's judgment on costs and project operations should be based upon a determination that the judgment is supported by substantial evidence. The Secretary must submit into the record a written statement explaining the basis for any condition or prescription selected and the reason for not accepting any proposed alternative condition or prescription. The written statement must demonstrate that the Secretary gave equal consideration to a number of specified factors. The subsection provides that if the Secretary does not accept an applicant's proposed alternative condition or prescription and the FERC finds the resource agency's condition or prescription to be inconsistent with applicable law, the FERC may refer the dispute to its Dispute Resolution Service for a non-binding advisory. The Committee does not intend section 261 to shift the burden of proof or to change the standard of proof required by section 556(d) of title 5, United States Code, to support an agency determination.
Section 262. Alaska State jurisdiction over small hydroelectric projects
The provision is self-explanatory.
Section 263. Flint Creek hydroelectric project
The provision is self-explanatory.
Section 301. Permanent authority to operate the Strategic Petroleum Reserve and other energy programs
Section 301 permanently authorizes the Strategic Petroleum Reserve (SPR). The SPR was established pursuant to the authority granted under the Energy Policy and Conservation Act (EPCA). This section authorizes the Secretary of Energy to expeditiously as practicable, without incurring excessive cost or appreciably affecting the price of gasoline or heating oil to consumers, acquire petroleum sufficient to fill the SPR to the one billion barrel capacity authorized by the EPCA.
Section 301 also permanently authorizes the Northeast Home Heating Oil Reserves.
Section 302. National oilheat research alliance
Section 302 amends the Energy Act of 2000 (P.L. 106-469; 42 U.S.C. 6201) to extend the authorization for the National Oilheat Research Alliance (NORA) until nine years after the date on which NORA was established.
Section 311. Definition of Secretary
Section 311 is self-explanatory.
Section 312. Program on oil and gas royalties-in-kind
Subsection (a) provides that the section applies to all royalty-in-kind (RIK) accepted by the Secretary under specified statutes.
Subsection (b) provides that all royalty accruing for oil or gas under a Federal lease issued under those authorities shall, on the demand of the Secretary, be paid in oil or gas beginning on the date of enactment and sets forth other requirements applicable to RIK payments. The subsection gives the Secretary the authority to retain and use a portion of the revenues generated from RIK sales to pay costs of transporting, processing, or disposing of the royalty production and for salaries and administrative costs of the RIK program.
Subsection (c) provides that if a lessee, pursuant to an agreement with the United States or if provided in the lease, processes the royalty gas or delivers the oil or gas at a point not on or adjacent to the lease area, the Secretary shall compensate the lessee in a manner articulated in the subsection.
Subsection (d) provides that the Secretary may receive oil or gas royalties-in-kind only if the Secretary determines that doing so provides benefits to the United States greater than or equal to those likely to have been received had royalties been taken in value.
Subsections (e), (f), (g), (h), (i) and (j) are self-explanatory.
Section 313. Marginal property production incentives
Subsection (a) defines `marginal property' as set forth in the section, until such time as the Secretary issues regulations that prescribe a different definition, with respect to Federal onshore oil and gas leases.
Subsection (b) sets forth conditions for the reduction of the royalty rate on such properties.
Subsection (c) sets forth the reduced royalty rate.
Subsection (d) sets forth the authority for the termination of the reduced royalty rate.
Subsection (e) explicitly provides authority for the Secretary of the Interior to prescribe different standards for royalty relief by regulation. The subsection directs the Secretary to accept and consider petitions for royalty relief for marginal properties on the OCS under existing authorities and to act on such petitions within 90 days.
Subsection (f) is self-explanatory.
Section 314. Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico
Section 314 is self-explanatory.
Section 315. Royalty relief for deep water production
Section 315 is self-explanatory.
Section 316. Alaska offshore royalty suspension
Section 316 authorizes the Secretary of the Interior under the Outer Continental Shelf Lands Act to give royalty relief to existing, non-producing leases for production in Alaska frontier regions, as specified in the section.
Section 317. Oil and gas leasing in the National Petroleum Reserve in Alaska
Subsection (a) transfers authorities and is self-explanatory.
Subsection (b) restates the requirement of current law that the Secretary conduct an expeditious program of competitive oil and gas leasing in the NPRA. It states that the Secretary should prevent to the extent practicable and mitigate adverse effects from leasing and development activities. It also states that the Secretary minimize to the extent practicable the impact to surface resources and consolidate facilities. Subsection (b) does not present a new standard for the leasing program conducted under this section, but rather is a further exposition of existing law. It does not express the view of Congress as to whether the BLM has or has not met the standard. The section provides that leases be for an initial period of not more than 10 years and so long thereafter as oil or gas is produced from the lease in paying quantities or drilling or reworking operations, as approved by the Secretary, are conducted on the leased land. The section provides that at the end of the primary term of the lease, the Secretary shall renew the lease for one additional 10-year term if certain standards as set forth in the subsection are met and the lessee pays a renewal fee of $100 per acre. The subsection authorizes the Secretary to unitize leases and sets forth requirements relating to unit agreements. The section conforms the Secretary's authority to waive, suspend or reduce royalties on the NPRA with the authority under the Mineral Leasing Act with respect to onshore oil and gas leasing in the lower 48 states. The provision requires the Secretary to waive administration of leases where the Native Regional Corporation owns the subsurface estate; however, the provision does not limit the authority of the Secretary to manage the federally-owned surface estate within the NPRA.
Subsection (c) makes conforming amendments.
Section 318. North Slope science initiative
Subsection (a) establishes a North Slope Science Initiative to implement efforts to coordinate collection of scientific data to provide a better understanding of the terrestrial, aquatic, and marine ecosystems of the North Slope of Alaska.
Subsections (b), (c), (d), (e), and (f) are self-explanatory.
Section 319. Orphaned, abandoned, or idled wells on Federal land
Subsection (a) requires the Secretary of the Interior, in cooperation with the Secretary of Agriculture, to establish a program to remediate, reclaim, and close, orphaned, abandoned, or idled wells on Federal lands administered by the Secretaries of the Interior and Agriculture.
Subsections (b), (c), (d), and (e) sets forth requirements for the program, provisions related to cooperation and consultation, requirements for a plan, and defines `idled well'.
Subsection (f) requires the Secretary of Energy to establish a technical assistance program to provide assistance to states in dealing with orphaned and abandoned wells on state and private lands.
Subsection (g) authorizes funding for the programs.
Section 320. Combined hydrocarbon leasing
The section amends the Mineral Leasing Act to authorize the Secretary of the Interior to issue separately leases for exploration for and extraction of tar sand and oil and gas in areas that contain a combination of tar sand and oil and gas.
Section 321. Alternate energy-related uses on the Outer Continental Shelf
Section 321 amends the Outer Continental Shelf Lands Act to provide authority to the Secretary of the Interior to grant leases, easements, or rights-of-way for energy and related purposes on the OCS. The section does not allow the grant of easements or rights-of-way for activities that support the exploration, development, or production of oil and gas in areas where oil and gas preleasing, leasing and related activities are prohibited by a congressional moratorium or a withdrawal pursuant to section 12 of the Outer Continental Shelf Lands Act. The authority does not apply to any area within the exterior boundaries of any unit of the National Park System, National Wildlife Refuge System, or National Marine Sanctuary System, or any National Monument. The section requires the Secretary to undertake a coordinated OCS mapping initiative to assist in decision-making relating to the siting of facilities under the section.
Section 322. Preservation of geological and geophysical data
Section 322 requires the Secretary to carry out an initiative with the States to archive and provide a national catalog of geologic, geophysical, and engineering data, maps, well logs and samples. The Secretary is required to establish a data archive system of repositories and to provide technical and financial assistance related to the archival material.
Section 323. Oil and gas lease acreage limitations
Section 323 amends the Mineral Leasing Act provision to increase the limitation on the amount of acreage that can be held by a person under lease in any one State.
Section 324. Assessment of dependence of State of Hawaii on oil
Section 324 requires the Secretary of Energy to assess the economic implications of the dependence of the State of Hawaii on oil as the principal source of energy for the State including; the prospects for supply disruptions and price volatility impacts on the State economy; the economic relationship between the use of residual fuel in oil-fired generation of electricity and the consumption of refined petroleum products in transportation; the feasibility of increasing the contribution of renewable energy for the generation of electricity; the feasibility of using liquefied natural gas for electric generation; the feasibility for using renewable energy (including hydrogen) for transportation; and the development of hydrogen from renewable resources and its application to the energy needs of the State.
The section further directs the Secretary to prepare and submit a report to Congress on the findings, conclusions and recommendations of this assessment within 300 days after the date of enactment.
Section 325. Denali Commission
Section 325 authorizes the appropriation of funds to the Denali Commission to carry out energy programs and power cost equalization programs. It also provides requirements for conducting open commission meetings including public announcements about such meetings and the maintaining transcripts or minutes.
Section 326. Comprehensive inventory of OCS oil and natural gas resources
Section 326 requires the Secretary of the Interior to conduct an inventory and analysis of OCS oil and gas resources. The Secretary is directed to use data on resources offshore Canada and Mexico, as well as using any available technology (except for drilling which is explicitly prohibited), including 3-D seismic technology, to develop accurate domestic oil and gas resource estimates. The Secretary is to submit a report within 6 months of enactment and update the report at least every 5 years.
Section 327. Review and demonstration program for oil and gas production
Section 327 requires the Secretaries of the Interior and Energy to review of opportunities to enhance production of oil and gas from public land and the OCS through royalty or production incentives to lessees that inject carbon dioxide to enhance recovery. The provision also requires the Secretary of Energy to establish a competitive grant program for enhancing recovery of oil and gas by injecting carbon dioxide. It provides for up to 10 projects in the Willistin Basin of North Dakota and Montana and 1 project in the Cook Inlet Basin of Alaska.
Section 341. Federal onshore oil and gas leasing practices
Section 341 provides for a review by the National Academy of Public Administration of the Federal onshore oil and gas leasing program. The Secretary of the Interior is to conduct an internal review concurrent with the work of the National Academy of Public Administration. The Secretary of the Interior and the National Academy are to report findings and recommendations to Congress within 18 months.
Section 342. Management of Federal oil and gas leasing programs
Section 342 directs the Secretary of the Interior to ensure expeditious compliance with the requirements of the National Environmental Policy Act of 1969, improve consultation and coordination with the States, and improve collection, storage, and retrieval of information related to onshore oil and gas leasing on lands otherwise available for leasing. The section directs the Secretary to improve inspection and enforcement of oil and gas activities under the onshore oil and gas leasing program. The section provides that the Secretary of Agriculture also ensure expeditious compliance with all applicable environmental laws and improve collection, storage and retrieval of information. The provision requires the Secretary of the Interior to develop and implement best management practice for the onshore oil and gas leasing program. The section authorizes additional appropriations for the BLM, Fish and Wildlife Service, and Forest Service for these purposes.
Section 343. Consultation regarding oil and gas leasing on public land
Section 343 requires the Secretaries of the Interior and Agriculture to enter into a memorandum of understanding regarding oil and gas leasing on public lands and National Forest System lands to establish procedures to ensure timely processing of leasing authorizations and applications for permits to drill. Section 343 requires Secretaries to agree to establish a joint data retrieval system and a joint Geographic Information System for mapping.
Section 344. Pilot program to improve federal permit coordination
Section 344 requires the Secretary of the Interior to establish a Federal Permit Streamlining Pilot Project. Seven Western offices of the BLM are identified for participation in the project. The provision requires that relevant Federal agencies deploy staff to work with BLM land managers as a team on all environmental permits and land use planning documents in order to coordinate and improve Federal decisionmaking with respect to the permits. This section also requires the Secretary to prepare a report for submission to the President. The section directs the Secretary of the Interior to assign such additional personnel to the seven BLM offices as necessary to ensure effective implementation of the Pilot Program and the other programs administered by the BLM offices pursuant to the statutory mandate for the multiple use of public lands.
Section 345. Energy facility rights-of-ways and corridors on Federal land
Section 345 requires the Secretary of the Interior, with respect to public lands, and the Secretary of Agriculture, with respect to National Forest System lands, to designate utility corridors in Western States and to incorporate such corridors into land use and resource management plans within 24 months following execution of the memorandum required by the section. The section requires the Secretary of Energy to develop a memorandum of understanding with the Secretary of the Interior, the Secretary of Agriculture, and the Secretary of Defense to coordinate
applicable Federal authorizations and environmental reviews related to a proposed or existing utility facility.
Section 346. Oil shale leasing
The section requires the Secretary of the Interior to offer lands otherwise available for leasing for a period to be determined by the Secretary for purposes of research and development of innovative technologies for the recovery of shale oil from oil shale resources on public land. Within 18 months after the date of enactment, the Secretary must complete a programmatic environmental impact statement and a report relating to the potential leasing for commercial purposes of oil shale resources on public land. The U.S. Geological Survey is directed to undertake an assessment of oil shale resources.
Section 371. Coastal Impact Assistance Program
Section 371 authorizes the appropriation for fiscal years 2006 through 2010 of $500 million per year for payments to Producing Coastal States with approved Coastal Impact Assistance Plans and political subdivisions in accordance with a formula set forth in the section. Thirty-five percent of a State's allocable share will be paid to the coastal political subdivisions in the State. Amounts provided under the section must be used only for one or more of the following: (i) Projects and activities for the conservation, protection, or restoration of coastal areas, including wetlands; (ii) mitigating damage to fish, wildlife, or natural resources; (iii) planning assistance and administrative costs of complying with the provisions of this section; (iv) implementation of approved marine, coastal or conservation plans; (v) mitigating the impacts of OCS activities through funding onshore infrastructure and public service needs.
Section 381. Exportation or importation of natural gas
Section 381 clarifies FERC's exclusive jurisdiction under the Natural Gas Act for siting, construction, expansion and operation of import/export facilities located onshore or in State waters. This section does not provide FERC eminent domain authority over siting LNG facilities. The Committee believes that State and local government involvement should be a critical part of the FERC siting process. In particular, State and local government entities should play an important role in the development of the safety and security guidelines for proposed facilities. The committee believes that the State and local governments are in the best position to understand the needs of the community surrounding proposed sites and should remain a critical asset to the FERC during the siting process.
Section 381 also codifies FERC's Hackberry policy. In Hackberry, FERC allowed the owners of a proposed LNG regasification terminal to negotiate contracts for terminal services directly with prospective LNG suppliers (eliminating open access requirements) as a way to encourage site development.
Section 382. New natural gas storage facilities
Section 382 allows FERC to grant new storage capacity market-based rate treatment, notwithstanding the fact the applicant may have market power, if (1) it is in the public interest, (2) it is needed storage capacity, and (3) customers are adequately protected.
Section 383. Process coordination; hearings; rules of procedures
Section 383 establishes FERC as the lead agency for NEPA purposes and provides FERC authority to set schedules for required Federal authorizations. Agencies with jurisdiction over natural gas infrastructure are encouraged to coordinate their proceedings with the timeframe established by FERC. If a schedule deadline is not met, the President may issue a decision.
Section 384. Penalties
Section 384 increases penalties under the Natural Gas Act and Natural Gas Policy Act, parallel to increases in the Federal Power Act ($5,000 to $1,000,000). Section 384 also creates a civil penalty under Natural Gas Act.
Section 385. Market manipulation
Section 385 amends the Natural Gas Act to ban any `manipulative or deceptive device or contrivance' (as those terms are used in section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j (b))), in connection with jurisdictional natural gas transactions, that are in violation of FERC rules.
Section 386. Natural gas market transparency rules
Section 386 authorizes FERC to establish an electronic information system to provide information about the price or transportation costs of natural gas in interstate commerce. Section 386 requires FERC to exempt from disclosure information the disclosure of which would be detrimental to the operation of an effective market or which would jeopardize system security. Section 386 shall not affect the CFTC's exclusive jurisdiction with respect to commodities under the Commodity Exchange Act. Section 386 provides that FERC shall not compete with private sector publishers of energy prices.
Section 387. Deadline for decision on appeals of consistency determination under the Coastal Zone Management Act of 1972
Section 387 amends the CZMA by establishing a 270-day period in which the Secretary of Commerce must close the decision record. The Secretary may stay the 270-day clock for up to 60 days to acquire supplemental information regarding the consistency determination or clarifying information from a party to the proceeding related to information already in the record. Section 387 provides that the Secretary has 90 days after the record is closed (90 days after the 270 to 330 days, if stayed 60 days) to issue a decision or explain why it cannot, in which case the
Secretary has an additional 45 days to issue a decision. In total, section 387 allows for 1 year and 100 days for the Secretary to complete action on an appeal of a consistency determination.
Section 388. Federal-State liquefied natural gas forums
Section 388 directs the Secretary of Energy, in cooperation and consultation with Secretary of Transportation, Secretary of Homeland Security, FERC, and Governors of coastal States, to convene at least 3 forums to discuss LNG siting issues such as siting, safety, and emergency response. The purpose of the forums is to identify and develop best practices related to LNG and to foster cooperative efforts.
Section 389. Prohibition on trading and serving by certain persons
Section 389 allows courts to prevent anyone who manipulates markets from serving as officers or directors of gas utility companies or engaging in the business of selling or purchasing gas or gas transmission services jurisdictional to FERC.
Section 391. Federal coalbed methane regulation
Section 391 provides that any State that, as of the date of enactment of this Act, is included on the list of affected States established under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C. 13368(b)) shall be removed from the list if, not later than 3 years after the date of enactment of this Act, the State takes steps to implement a program promoting the permitting, drilling and production of coalbed methane wells within that State.
Section 401. Authorization of appropriations
Section 401 authorizes $200 million annually for each of fiscal years 2006 through 2014 to carry out the purposes of this subtitle. It requires a report from the Secretary of Energy that contains an 8-year plan for implementing the Clean Coal Power Initiative.
Section 402. Project criteria
Section 402 establishes criteria for eligibility to receive assistance under this subtitle. It establishes emissions and thermal efficiency criteria for gasification projects and `other projects.' It requires the Secretary to allocate at least 80 percent of funds to coal gasification technologies and not more than 20 percent of funds to other combustion technologies. All projects must meet increasingly strict environmental and thermal efficiency performance standards. The section permits the expenditure of funds on carbon capture and sequestration technologies. The Secretary must give priority to projects that include carbon capture and sequestration as part of the project. The section also places this program under the cost-sharing requirements of section 1002, in lieu of the existing cost-sharing requirements (including repayment requirements) that have been imposed on the program in past appropriations Acts.
Section 403. Report
Section 403 requires the Secretary to report within one year of the date of enactment and every two years thereafter on the status and progress of the Initiative.
Section 404. Clean coal centers of excellence
Section 404 requires the Secretary to award competitive grants to establish centers of excellence for clean coal technologies at institutions of higher education selected for their potential to advance new clean coal technologies.
Section 405. Integrated coal/renewable energy system
Section 405 allows the Secretary of Energy to provide loan guarantees to an integrated gas combined cycle project that uses coal and wind and other renewable energy sources and that has the capacity to sequester carbon dioxide and provide a source of hydrogen.
Section 406. Loan to place Alaska Clean Coal Technology facility in service
Section 406 allows the Secretary of Energy to grant a direct loan of not more than $80 million to allow the borrower to place a clean coal technology plant into reliable operation for the generation of electricity.
Section 407. Western integrated coal gasification demonstration project
Section 407 directs the Secretary of Energy to carry out a demonstration project to produce energy from coal mined in the Western United States using integrated gasification combined cycle technology capable of sequestering carbon dioxide emissions.
Section 411. Repeal of the 160-acre limitation for coal leases
Section 411 amends the Mineral Leasing Act to allow leases up to 320 acres subject to certain limitations.
Section 412. Mining plans
Section 412 amends the Mineral Leasing Act to allow the Secretary of the Interior to allow a period of more than 40 years if the Secretary makes certain determinations regarding maximum economic recovery of a coal deposit, and that the longer period is in the interest of the orderly, efficient, or economic development of a coal resource.
Section 413. Payment of advance royalties under coal leases
Section 413 amends the Mineral Leasing Act to extend the aggregate number of years during the period of any lease for which advance royalties may be accepted in lieu of the condition of continued operation to no more than twenty years.
Section 414. Elimination of deadline for submission of coal lease operation and reclamation plan
Section 414 eliminates the deadline for submitting an operation and reclamation plan.
Section 415. Application of amendments
Section 415 stipulates that amendments made by this subtitle apply to any coal lease issued on or after the date of enactment of this Act. Amendments made by this Act may apply to any lease issued before the date of enactment on the date of readjustment of the lease under section 7(a) of the Mineral Leasing Act or on request by the lessee, prior to the date of adjustment.
Section 501. Short title
Section 501 contains the short title, the `Indian Tribal Energy Development and Self-Determination Act of 2005'.
Section 502. Office of Indian Energy Policy and Programs
Section 502 amends title II of the DOE Organization Act to create the Office of Indian Energy Policy and Programs within the DOE to support the development and use of tribal energy resources. It states that a director shall be appointed by the Secretary of Energy and outlines the duties of the director.
Section 503. Indian energy
Section 503 provides a complete substitute for title XXVI of the Energy Policy Act of 1992 specifically as follows:
Section 2601 defines terms used in the Act.
Section 2602(a) requires the Secretary of the Interior to implement an Indian energy resource development program to assist Indian tribes in the development of their resources and to further the goal of Indian self-determination. The Secretary is authorized to provide grants and low-interest loans to qualifying tribes and Tribal Energy Resource Development Organizations. Such sums as are necessary to carry out the subsection are authorized to be appropriated from fiscal year 2006 through 2016.
Section 2602(b) directs the Director of the Office of Indian Energy Policy and Programs at DOE to develop a program to assist consenting tribes in meeting energy education, research and development, planning and management needs and authorizes the Director to provide grants to tribes or tribal energy resource development organizations. The Director is also required to develop a program to provide tribes with the opportunity to participate in carbon sequestration practices. The sum of $20 million is authorized to be appropriated for each of fiscal years 2006 through 2016.
Section 2602(c) authorizes, under specified conditions, the Secretary of Energy to provide loan guarantees for an amount equal to not more than 90 percent of unpaid interest and principal due on any loan made to an Indian tribe for energy development. The aggregate outstanding sum guaranteed by the Secretary of Energy shall not exceed $2 billion.
Section 2602(d) authorizes Federal agencies to give preference in purchasing electricity or other energy products to Indian-owned or controlled entities under specified conditions.
Section 2603 authorizes the Secretary of the Interior to provide grants to tribes to inventory, study, and develop their energy resources and to enhance the legal and administrative ability of tribes to manage their energy resources.
Section 2604 establishes a program by which an Indian tribe may submit to the Secretary of the Interior for approval a tribal energy resources agreement (TERA) for the development of energy resources on tribal land and gives the Secretary one year to approve or disapprove that agreement. Upon approval of the TERA, Indian tribes are authorized to enter into leases and business agreements, or approve rights-of-way for applicable energy projects without separate approval of the Secretary of the Interior. The Secretary is required to conduct a periodic review and evaluation of the tribe's activities and the tribes must monitor the activities of their business partners. The section outlines a process for public input into proposed TERAs as well as a process to review alleged violations of the TERA by an applicable tribe and the Secretary. There are authorized to be appropriated such sums as necessary from 2006 through 2016 to carry out this section.
The program established by this section advances the ongoing policy of encouraging greater tribal self-determination in energy-related leasing and agreements. The program is consistent with policies ensuring that tribal self-determination and the Federal trusteeship are complementary, and that an Indian tribe that elects to pursue greater self-determination does not do so at the expense of the trust relationship between the United States and the Indian tribe.
Section 2605 authorizes and encourages actions by the Power Marketing Administration to assist tribal energy development. The Western Area Power Administration is authorized to make power allocations to meet the firming and reserve needs of Indian-owned energy projects and to acquire power generated by Indian tribes for firming and reserve needs, so long as the rates and
terms are competitive. The Secretary of Energy is also required to complete a study that describes the use by Indian tribes of Federal power market allocations, the quantity of power allocated to tribes by Power Marketing Administrations and identification of barriers that impede tribal access to Federal power. The sum of $750,000 is authorized to be appropriated to carry out this section.
Section 2606 authorizes a study on the feasibility of a demonstration project using wind energy generated by Indian tribes and hydropower generated by the Army Corps of Engineers on the Missouri River to supply firming power to WAPA. The sum of $1 million is authorized to be appropriated for this study.
Section 504. Four Corners transmission line project and electrification
Section 504 makes the Dine Power Authority, a Navajo Nation enterprise, eligible for funding under this title for activities associated with the development of a transmission line from the Four Corners Area to southern Nevada and related power generation opportunities. This section also amends section 602 of Public Law 106-511 to extend the administration of the Navajo Electrification project through 2011.
Section 505. Energy efficiency in Federal housing
Section 505 directs the Secretary of Housing and Urban Development to promote energy conservation and efficiency in Federal housing located on Indian land.
Section 506. Consultation with Indian tribes
Section 506 requires the Secretary of the Interior and Secretary of Energy to involve and consult with Indian tribes in the implementation of this title.
Section 601. Short title
Section 601 is self-explanatory.
Section 602. Extension of indemnification authority
The authorization period for indemnification provisions for NRC licensees and DOE contractors is extended for a period of twenty years.
Section 603. Maximum assessment
Section 603 increases the maximum annual assessment under the standard deferred premium on NRC licensees from $10 million to $15 million, increases the overall cap from $63 million to $95.8 million, and adjusts these numbers for inflation in the future.
Section 604. Department of Energy liability limit
Section 604 sets the total amount of indemnification for DOE contractors at $10 billion, and adjusts this number for inflation in the future.
Section 605. Incidents outside the United States
This section increases the amount of indemnification for DOE contractors engaged in nuclear activities outside the United States from $100 million to $500 million.
Section 606. Reports
Section 606 requires DOE and NRC to issue a report to Congress on the status of the Price-Anderson program by December 31, 2021.
Section 607. Inflation adjustment
Section 607 requires the NRC to adjust for inflation the standard deferred premium for NRC licensees every five years.
Section 608. Treatment of modular reactors
Section 608 allows NRC to consider a combination of small modular reactors at one site to be a single facility for purposes of Price-Anderson indemnification.
Section 609. Applicability
Section 609 clarifies that the amendments made by sections 603, 604, and 605 do not apply to a nuclear incident that occurs before the date of their enactment.
Section 610. Civil penalties
Section 610 ends the automatic remission of civil penalties for nuclear safety violations by DOE contractors that are nonprofit institutions and establishes a limit on such civil penalties not to exceed the total fees paid within one year to the nonprofit institution.
Section 621. Medical isotope production
Section 621 provides for the NRC to license the export of highly enriched uranium for medical isotope production in Canada, Belgium, France, Germany and the Netherlands. The intent of the medical isotope provision is to ensure that the United States medical community has an adequate and reliable supply of isotopes for nuclear medicine. The medical isotope provision does not mitigate or restrict the NRCs authority to require that recipients of high enriched uranium (HEU) be actively working to convert to low enriched targets. Nor does the provision reduce any security measures implemented by the NRC which ensure the safe transport and storage of HEU. Section 621 provides the NRC with more authority to add additional safeguards if it believes they are necessary.
Section 622. Safe disposal of greater-than-class C radioactive waste
Section 622 requires the designation of an entity within the DOE to be responsible for the final disposal of Greater-Than-Class C Radioactive Waste (GTCC). This section also requires the development of a comprehensive plan with alternatives for the disposal of GTCC. Before a final action is taken by the Secretary, a report is required to Congress describing all alternatives under consideration and await action by Congress.
Section 623. Prohibition on nuclear exports to countries that sponsor terrorism
Section 623 strengthens existing laws that contain prohibitions of nuclear exports to countries identified by the Secretary of State as engaging in state-sponsored terrorism.
Section 624. Decommissioning pilot program
Section 624 establishes a pilot program to decommission and decontaminate the sodium-cooled fast breeder experimental test-site reactor in Arkansas and authorizes appropriation of $16,000,000.
Section 661. Project establishment
This section is self-explanatory.
Section 662. Project management
Section 662 designates the Office of Nuclear Energy, Science and Technology as the project manager. The Secretary may also call upon the Office of Science to provide their expertise for the project. The Idaho National Laboratory (INL) is designated as the lead laboratory and directed to organize a consortium of industrial partners to participate in the project. The prototype plant will be built in Idaho at the INL. The project may utilize facilities at other national laboratories.
Section 663. Project organization
Section 663 establishes the major project elements, the phases in which the project will be conducted, project requirements, international collaboration, and project review. The program will be completed in phases; the first phase will validate the technologies under the major project elements. The first phase will examine whether it is appropriate to produce electricity and hydrogen concurrently and begin initial design activities for a prototype nuclear power plant. The second phase of the project includes the competitive process for reactor and plant design, licenses to construct and operate from the NRC and general construction and operation. Project requirements include making full use of the expertise of the nuclear power industry, chemical processing industry and Generation IV International Forum partners. The Nuclear Energy Research Advisory Committee (NERAC) will review all project plans on an ongoing basis to ensure all scientific, technical, safety and program management issues receive proper attention. After a review of phase one activities, the NERAC will also make a recommendation to the Secretary to proceed to phase two of the project. The Secretary shall transmit any NGNP NERAC report to the Congress after reviewing it.
Section 664. Nuclear Regulatory Commission
Section 664 sets forth that the NRC will have licensing and regulatory authority for any reactor authorized in this program. The NRC and DOE are also required to notify Congress of the preferred licensing strategy for NGNP. Requires the Secretary of the DOE to have ongoing interaction with the NRC throughout the duration of the project
Section 665. Project timelines and authorization of appropriations
This section is self-explanatory.
Section 701. Use of alternative fuels by dual-fueled vehicles
Section 701 amends current law to strengthen requirements that Federal vehicle fleets actually use alternative fuels in their alternative fuel capable vehicles.
Section 702. Alternative fuel use by light duty vehicles
Section 702 sunsets the alternative fuel vehicle requirements for covered motor vehicle fleets under sections 501, 507, and 508 of the Energy Policy Act of 1992 not later than 2015.
Section 703. Incremental cost allocation
Section 703 makes a minor technical amendment to section 303(c) of the Energy Policy Act of 1992.
Section 704. Alternative compliance
Section 704 amends title V of the Energy Policy Act of 1992 to allow covered fleet operators to apply for a waiver of the requirements of the Act. The amendment would provide flexibility to fleet operators and ease compliance with the fleet requirements for petroleum fuel use reductions.
Section 705. Report concerning compliance with alternative fueled vehicle purchasing requirements
Section 705 requires a report from the Secretary of Energy on purchasing requirements by February 15, 2006.
Section 711. Authorization of appropriations for implementation and enforcement of fuel economy standards
Section 711 authorizes $2 million for each of fiscal years 2006 through 2010 for the National Highway Traffic Safety Administration to carry out its obligations with respect to fuel economy standards.
Section 721. Railroad efficiency
Section 721 establishes a cost-shared, public-private research partnership to develop and demonstrate technologies that increase railroad locomotive fuel economy, reduce air emissions and lower operating costs. It authorizes $110 million over three years for the program.
Section 722. Conserve by bicycling program
Section 722 establishes a program in the Department of Transportation to promote fuel conservation through greater use of bicycling as an alternative to motor vehicle use. It authorizes $6.2 million for the program.
Section 723. Reduction of engine idling of heavy-duty vehicles
Section 723 establishes a program under the EPA to develop and deploy stationary and mobile technologies that will assist in reducing the amount of time large over-the-road trucks spend idling. The program is authorized to spend $49.5 million over three years to promote stationary idling technologies. The amendment provides for a 250 pound weight exemption for large trucks that make use of auxiliary power units in lieu of engine idling.
Section 724. Biodiesel engine testing project
Section 724 requires the Secretary of Energy to initiate a project in partnership with the diesel engine diesel fuel injection system, and diesel vehicle manufacturers and diesel and biodiesel fuel providers to provide biodiesel testing in advanced diesel engine and fuel system technology. It authorizes $5 million for each of fiscal years 2006 through 2008.
Section 731. Definitions
Section 731 sets forth the definitions of terms used in this subtitle.
Section 732. Federal and State procurement of fuel cell vehicles and hydrogen energy systems
Section 732 sets forth the purposes of the section: to stimulate acceptance by the market of fuel cell vehicles and hydrogen energy systems and support development of technologies relating to fuel cell vehicles, public refueling stations, and hydrogen energy systems and to require the Federal Government to adopt those technologies as soon as practicable.
This section also establishes a program for Federal leases and purchases of fuel cell technologies and authorizes a total of $105 million over fiscal years 2008 through 2010.
Section 733. Federal procurement of stationary, portable, and micro fuel cells
Section 733 sets for the purposes of the section which are to stimulate the acceptance by the market of these technologies and support the development of technologies related to stationary, portable and micro fuel cells.
The section also establishes a program for Federal leases and purchases of stationary, portable and micro fuel cells and authorizes a total of $345 million over fiscal years 2006 through 2010.
Section 801. Hydrogen research, development, and demonstration
Section 801 provides a complete substitute for the Spark M. Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12401 et seq.), authorizes basic research, development and demonstration activities related to hydrogen energy, fuel cells and related infrastructure. The substitute establishes an interagency task force to advise the Secretary, provides for the transfer of critical hydrogen and fuel cell technologies to the private sector, provides for the development of safety codes and standards related to fuel cell vehicles and hydrogen energy systems, and requires a National Academy report.
Section 901. Short title
Section 901 designates the title as the `Energy Research, Development, Demonstration, and Commercial Application Act of 2003'.
Section 902. Goals
Section 902 defines broad goals and requires the Secretary of Energy to publish specific goals with each annual budget submission.
Section 903. Definitions
This section is self-explanatory.
Section 911. Energy efficiency
This section sets authorization levels and is self-explanatory.
Section 912. Next generation lighting initiative
Section 912 authorizes a new initiative to develop advanced solid state lighting options through research, development, demonstration, and commercial application activities. A definition regarding the selection of an Industry Alliance to assist in updating roadmaps and assessing progress of the Initiative is provided within this section.
Section 913. National building performance initiative
Section 913 authorizes the Director of Office of Science and Technology Policy (OSTP) to establish an interagency program to address energy conservation and R&D efforts to reduce energy use in buildings. An advisory committee is established to oversee creation and implementation of a plan, and requires annual progress reports.
Section 914. Secondary electric vehicle battery use program
Section 914 authorizes a program to evaluate secondary use of electric vehicle batteries through research, development, demonstration, and commercial application activities.
Section 915. Energy efficiency science initiative
Section 915 authorizes a research program administered by the Assistant Secretary responsible for energy conservation.
Section 921. Distributed energy and electric energy systems
Section 921 provides authorization levels and is self-explanatory.
Section 922. High power density industry program
Section 922 authorizes the creation of a research and demonstration program for high power density facilities.
Section 923. Micro-cogeneration energy technology
Section 923 authorizes grants to consortia to develop small-scale combined heat and power systems for residential applications.
Section 924. Distributed energy technology demonstration program
Section 924 authorizes assistance to demonstration projects using distributed energy technologies in highly energy intensive commercial applications.
Section 925. Electric transmission and distribution programs
Section 925 authorizes research, development and demonstration programs to ensure reliability, efficiency and environmental integrity of electrical transmission systems and requires a 5-year program plan to be completed within the first year. This section authorizes a Power Delivery Research Initiative focused on establishing test beds at national laboratories, universities, or in industry, to evaluate and demonstrate the technologies required to move high temperature superconductivity into commercial use. A Transmission and Distribution Grid Planning and Operations Initiative for research, development and demonstration of tools to plan, operate, and expand transmission and distribution grids in realistic market scenarios is authorized and this initiative shall use a distributed research center involving universities and national laboratories with a focus on transfer of useful technologies to industry.
Section 931. Renewable energy
Section 931 provides authorization levels and is self-explanatory.
Section 932. Bioenergy programs
Section 932 authorizes a broad program of research in biopower, biofuels and bioproducts, including technologies utilizing cellulosic feedstocks or enzyme-based processing.
Section 933. Concentrating solar power research program
Section 933 authorizes a program of research on concentrating solar power research to establish technologies and economics of both electricity and hydrogen production. A report with recommendations for future research is required within 4 years.
Section 934. Hybrid solar lighting research and development program
Section 934 authorizes a program of research on novel lighting systems that integrate sunlight and electrical lighting in complement to each other in common lighting fixtures for the purpose of increasing energy efficiency. A National Academy of Sciences report is required within 2 years.
Section 935. Miscellaneous projects
Section 935 authorizes research and development in ocean energy, combining renewable and other energy sources, and hydrogen carrier fuels.
Section 941. Nuclear energy
Section 941 provides authorization levels and is self-explanatory.
Section 942. Nuclear energy research programs
Section 942 authorizes the Nuclear Energy Research Initiative, Nuclear Energy Plant Optimization, Nuclear Power 2010, Generation IV Nuclear Energy Systems, Reactor Production of Hydrogen, and Nuclear Infrastructure Support Programs.
Section 943. Advanced fuel cycle initiative
Section 943 authorizes the Advanced Fuel Cycle Initiative to evaluate proliferation-resistant fuel recycling and transmutation technologies, which support evaluation of alternative national strategies for spent fuel management and Generation IV advanced reactor concepts. An annual progress report is required.
Section 944. University nuclear science and engineering support
Section 944 authorizes fellowship and faculty assistance programs, maintains university research and training reactors, and encourages interactions between universities and national laboratories.
Section 945. Security of nuclear facilities
Section 945 authorizes research and development on technologies for improving safety and security of reactors.
Section 946. Alternatives to industrial radioactive sources
Section 946 authorizes research and development on alternatives to large industrial radioactive sources, including well-logging sources, that reduce safety, environmental, or proliferation risks. A survey and report to Congress are required of existing types of commercial sources, along with review of available disposal options for such sources and evaluation of the need for alternative future disposal options.
Section 951. Fossil energy
Section 951 provides authorization levels and is self-explanatory.
Section 952. Oil and gas research programs
Section 952 authorizes research programs for oil and gas technologies with applications including exploration and production, reservoir life and extension, heavy oil and shale, and related environmental research. The section also authorizes research on fuel cells and requires a report at two year intervals on estimates of oil and gas reserves, reserves growth, and undiscovered resources.
Section 953. Methane hydrate research
Section 953 reauthorizes the Methane Hydrate Research and Development Act of 2000. It adds findings to the current Act, provides a new focus for ongoing activities in light of past recommendations of the National Research Council, requires a new study of the program by the National Research Council in 2009, and authorizes appropriations for the program through fiscal year 2010.
Section 954. Research and development for coal mining technologies
Section 954 authorizes research and development program on coal mining technologies. The research is to be guided by the Mining Industry of the Future program and relevant National Academy reports and is to include technologies to enable mining of coal with reduced contaminant levels.
Section 955. Coal and related technologies program
Section 955 authorizes a broad research, development, demonstration and commercial application program for coal and power systems and requires the Secretary to identify goals for coal-based technologies.
Section 956. Carbon dioxide capture research and development
Section 956 establishes a program of research and development aimed at developing carbon dioxide capture technologies for pulverized coal combustion units.
Section 957. Complex well technology testing facility
Section 957 is self-explanatory.
Section 961. Science
Section 961 establishes authorization levels for the Office of Science and authorizes separate funding for construction costs associated with the international burning plasma fusion research project known as ITER.
Section 962. United States participation in ITER
Section 962 authorizes U.S. participation in the international burning plasma fusion research project known as ITER and requires the Secretary to submit a plan within 180 days of enactment describing the design and implementation of international or national facilities for the testing of fusion materials and technologies.
Section 963. Support for science and energy facilities and infrastructure
Section 963 requires the development and implementation of a strategy for maintaining or building essential facilities and infrastructure primarily supporting programs at the Office of Science, the Office of Energy Efficiency and Renewable Energy, the Office of Fossil Energy, or the Office of Nuclear Energy, Science and Technology.
Section 964. Catalysis research program
Section 964 authorizes a broad research and development program for catalysis science including use of precious metals and requires National Academy of Science review every 3 years.
Section 965. Hydrogen
Section 965 authorizes a program of fundamental research and development in support of the hydrogen and fuel cell programs authorized under Title VIII of the Act.
Section 966. Solid state lighting
Section 966 authorizes a program of fundamental research on advanced solid state lighting in support of the Next Generation Lighting Initiative carried out under Section 912.
Section 967. Advanced scientific computing for energy missions
Section 967 authorizes a scientific computing research and development program, including activities related to applied mathematics, with the goal of supporting departmental missions and providing the computational, networking, and workforce resources required for world leadership in science.
Section 968. Genomes to life program
Section 968 authorizes research and development in microbial and plant systems biology, protein science, and computational biology and authorizes construction of user facilities at national laboratories.
Section 969. Fission and fusion energy materials research program
Section 969 authorizes a research and development program on material science issues presented by advanced fission reactors and Department's fusion program.
Section 970. Energy-water supply technologies program
Section 970 authorizes a research and demonstration program to study energy-related issues associated with water resources and issues associated with sustaining water supplies for energy production. Program topics shall include arsenic removal, desalination, and energy and water sustainability. The arsenic removal program is to be run by the American Water Works Association Research Foundation for the Department. Desalination program is to follow the national Desalination and Water Purification Technology Roadmap in partnership with the U.S. Bureau of Reclamation. The sustainability program supports water modeling studies, on the level of major national river basins, to understand water usage patterns and the impact of energy production activities in these basins.
Section 971. Spallation neutron source
Section 971 requires the development of an operational plan for the Spallation Neutron Source Facility that ensures the facility is employed to its full capability in support of the study of advanced materials, nanoscience, and other missions of the Department. The section authorizes funds for completion of construction of the facility, funds for operations, and additional funds to be available in the event that Department stockpiles of heavy water are insufficient to meet the needs of the facility.
Section 981. Western Hemisphere energy cooperation
Section 981 authorizes a program to promote cooperation on energy issues with countries of the Western Hemisphere, including energy production, energy efficiency, and the development and transfer of technologies to world energy markets.
Section 982. Cooperation between United States and Israel
Section 982 requires the Secretary of Energy to report to Congress on the 1996 `Agreement between the Department of Energy of the United States and the Ministry of Energy and Infrastructure of Israel Concerning Energy Cooperation.'
Section 1001. Availability of funds
This section provides that all funding authorized to be appropriated under this Act or by amendments made by this Act shall remain available until expended.
Section 1002. Cost sharing
This section establishes Department-wide cost-sharing requirements for all research, development, demonstration, and commercial application activities initiated after the date of enactment of this Act. These requirements will take the place of the current patchwork of cost-sharing requirements that have been contained in previous authorization and appropriations laws. The cost-sharing requirements will generally require a 20 percent cost share for research and development activities and a 50 percent cost share for demonstration and commercial application activities, with an exemption for basic or fundamental research and development and the ability for the Secretary to waive cost-sharing requirements in appropriate situations. The section specifies how in-kind contributions are to be treated for purposes of calculating a cost-sharing contribution. The section also prohibits repayment or `recoupment' provisions from being made part of cost-shared research, development, demonstration, and commercial application activities in the future. Such provisions in the past have been difficult to administer, have yielded little funding back to the Department, and have been a barrier to attracting the most competent external organizations to participate in Departmental cost-shared research, development, and demonstration activities.
Section 1003. Merit review of proposals
Section 1003 requires merit review of proposals for the award of any funds authorized under this Act or by amendments made by this Act.
Section 1004. External technical review of Departmental programs
Section 1004 requires advisory boards for Department programs and authorizes the Secretary to use the National Academy of Sciences to establish such boards and to conduct other reviews and assessments of programs and goals on at least 5-year intervals.
Section 1005. Improved technology transfer of energy technologies
Section 1005 requires the Secretary to appoint a Technology Transfer Coordinator, establishes a Technology Transfer Working Group with representation from each of the national laboratories and single-purpose research facilities, and establishes a Technology Commercialization Fund to be used to provide matching funds to private partners to promote promising technologies.
Section 1006. Technology infrastructure program
Section 1006 requires the Secretary to establish a pilot program to encourage the creation of technology clusters and improve the ability of the national laboratories and single-purpose research facilities to leverage and benefit from commercial research.
Section 1007. Small business advocacy and assistance
Section 1007 requires each National Laboratory, and enables each single-purpose research facility, to designate a small business advocate to facilitate participation of small businesses in procurement and research opportunities.
Section 1008. Outreach
Section 1008 requires each program authorized under the Act to include an outreach component to provide appropriate information to manufacturers, consumers, institutions of higher education, facility planners and managers, State and local governments, and other entities.
Section 1009. Relationship to other laws
Section 1009 clarifies that, except as otherwise provided in this Act or the amendments made by this Act, DOE research, development, demonstration, and commercial application programs should continue to be governed by the applicable provisions of the existing statutes that provide the Department with its authorities for research, development, demonstration, and commercial application. The five leading such statutes are specifically named in this section.
Section 1010. Improved coordination and management of civilian science and technology
Section 1010 amends the Department of Energy Organization Act to establish an additional Under Secretary designated as the Under Secretary for Science and Energy, and an Assistant Secretary for Science to head the Office of Science. An additional Assistant Secretary position is created, accompanied by a sense of Congress that leadership in nuclear energy shall be at the Assistant Secretary level. Sections 5314 and 5315 of title 5, United States Code, are amended to show 3, instead of 2, Under Secretaries of Energy and 8, instead of 6, Assistant Secretaries of Energy.
Section 1011. Other transactions authority
Section 1011 amends the Department of Energy Organization Act (42 U.S.C. 7256) to allow transactions by the Secretary of Energy to further research, development, or demonstrations and exempts them from provisions of section 9 of the Federal Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 5908). These other transactions can only be entered if standard contract, grant or cooperative agreements are not feasible or appropriate. The amendment also allows the Secretary to protect from disclosure certain business information for up to 5 years and requires that the Secretary develop guidelines within 3 months for using the other transactions mechanism.
Section 1012. Prizes for achievement in grand challenges of science and technology
Section 1012 authorizes cash prizes in recognition of break-through achievements in research, development, demonstration, and commercial application that have the potential for application to the performance of the mission of the Department. The Committee anticipates that the DOE will use such authority to overcome grand challenges in energy research and development similar in complexity to the Defense Advanced Research Projects Agency's `Grand Challenge' for autonomous robot ground vehicles.
Section 1013. Technical corrections
Section 1013 updates and makes technical corrections to the Act of July 7, 1960, the Federal Nonnuclear Energy Research and Development Act of 1974, the Stevenson-Wydler Technology Innovation Act of 1980, and the Department of Energy Organization Act.
Section 1101. Workforce trends and traineeship grants
Section 1101 requires the DOE, in consultation with the Department of Labor (DOL), to monitor workforce trends in the energy industry and report to Congress. It authorizes the DOE, in consultation with the DOL, to establish traineeship grants to address shortages of trained personnel.
Section 1102. Energy research fellowships
Section 1102 authorizes the Secretary of Energy to establish fellowships for postdoctoral and senior researchers in energy research and development fields. The fellowships are intended to be different in character from those currently offered through project funding. The postdoctoral fellowship is to be awarded to individuals, based on their promise as researchers, and is to be portable to the institution of higher education of each individual's choice. The senior fellowship is also to be awarded based on the track record of the individual, and not on the basis of a particular project proposal. The intention is to provide a mechanism in the DOE similar to the IBM Fellows program and similar programs in industry, which identify and give greater autonomy in selection of research topics to the most outstanding researchers
Section 1103. Educational programs in science and mathematics
Section 1103 amends the Department of Energy Science Education Enhancement Act (42 U.S.C. 7381a) to authorize the DOE to support competitive science and mathematics events and professional development for K-12 mathematics and science teachers.
Section 1104. Training guidelines for electric energy industry personnel
Section 1003 requires the Secretary of Labor, in consultation with the Secretary of Energy, to develop, jointly with the electric industry and recognized employee representatives, model personnel training guidelines to support electric system reliability and safety.
Section 1105. National Center on Energy Management and Building Technologies
Section 1105 requires the Secretary of Energy to support the establishment of a National Center on Energy Management and Building Technologies, to carry out research, education, and training activities to facilitate the improvement of energy efficiency and indoor air quality in industrial, commercial, and residential buildings.
Section 1106. Improved Access to energy-related scientific and technical careers
Section 1106 requires the Director of each National Laboratory, and, at the discretion of the Secretary of Energy, each science facility operated by the Department, to take actions to increase the participation of historically Black colleges or universities, Hispanic-serving institutions, or tribal colleges in activities that improve these institutions' ability to train students in scientific and technical careers.
Section 1107. National Power Plant Operations Technology and Education Center
Section 1107 requires the Secretary of Energy to support the establishment of a national training center to address the need for training and educating certified operators for electric power generation plants.
Section 1201. Short title
Section 1201 is self-explanatory.
Section 1211. Electric reliability standards
Section 1211 changes our current voluntary rules system to a mandatory rules system under an Electricity Reliability Organization (ERO). This section grants ERO, approved by FERC, the power to establish mandatory rules for operation of the transmission grid and authority to penalize anyone who violates those standards.
Section 1221. Siting of interstate electric transmission facilities
Section 1221 directs DOE to conduct a study of transmission congestion within 1 year of enactment (and triennially thereafter). This section authorizes the Secretary of Energy to designate one or more geographic areas as national interest electric transmission corridors. This section provides limited federal backstop siting authority (eminent domain) for electric transmission lines in areas designated by the Secretary of Energy as national interest transmission corridors. This section provides for just compensation for any rights-of-way acquired by eminent domain.
Section 1221 establishes DOE as the lead agency for setting schedules and coordinating Federal authorizations required in order to site a transmission facility. This section designates the President as the arbitrator for any delays or denials of Federal permits. This section authorizes States to enter into interstate compacts for the purpose of establishing regional transmission siting agencies with authority to site transmission facilities.
Section 1222. Third-party finance
Section 1222 authorizes the Western Area Power Administration (WAPA) and the Southwestern Power Administration (SWPA) to enter into public-private financial arrangements (third-party finance) to build or upgrade transmission facilities if certain criteria are met.
Section 1223. Advanced transmission technologies
Section 1223 directs FERC to encourage the deployment of advanced transmission technologies, including: high-temperature lines; underground cables; advanced conductor technology; high-capacity ceramic electric wire, connectors and insulators; optimized transmission line configurations; and modular equipment. The Committee is aware that the DOE has conducted one or more studies on high temperature, low sag technologies, the results of which the Committee would be interested in receiving from the Department as soon as practicable.
Section 1224. Advanced power system technology incentive program
Section 1224 authorizes the Secretary of Energy to establish an Advanced Power System Technology Incentive Program to support deployment of certain advanced power system technologies like fuel cells, turbines, or hybrid power systems or power storage systems to generate or store electric energy.
Section 1231. Open nondiscriminatory access
Section 1231 amends the FPA to authorize FERC to require unregulated transmitting utilities to provide open access to their transmission systems at rates that are comparable to those that the unregulated transmitting utility charges itself and on terms and conditions that are comparable to those the utility charges itself that are not unduly discriminatory or preferential. Small unregulated transmitting utilities, such as distribution co-ops, as well as unregulated transmitting utilities that do not own or operate significant transmission facilities are exempt from this section.
Section 1232. Regional Transmission Organizations
Section 1232 amends the FPA to authorize FERC to encourage and approve the voluntary formation of Transmission Organizations.
FERC may not condition any order issued under the FPA on a requirement that a transmitting utility transfer operational control of jurisdictional facilities to a Transmission Organization. The new language added to subsection (b) of section 217 of the Federal Power Act by this section is intended to prohibit FERC from requiring, or imposing as a condition, that a transmitting utility transfer operational control of jurisdictional facilities to a Transmission Organization. It is not intended to limit FERC authority with respect to transmitting utilities that are participating in Transmission Organizations.
Transmission Organizations must report annually to FERC to demonstrate their cost effectiveness.
Section 1233. Federal utility participation in Transmission Organizations
Section 1233 authorizes the appropriate Federal regulatory authority (the Secretary of Energy, the Administrator of a PMA or the Board of Directors of TVA) to enter into a contract, agreement or other arrangement transferring control and use of all or part of the transmission system of a Federal utility to a Transmission Organization.
Section 1234. Standard market design
Section 1234 terminates FERC's Proposed Rulemaking on Standard Market Design.
Section 1235. Native load service obligation
Section 1235 entitles load-serving entities to exercise firm transmission rights or equivalent tradable or financial transmission rights to the extent needed to meet their service obligation. This section does not affect the Commission's authority under sections 205 and 206 to ensure that rates are just and reasonable and not unduly discriminatory or preferential. With respect to the Midwest ISO, nothing in Section 218 is intended to guarantee that an entity shall be: (1) entitled to a particular financial transmission right allocation; (2) held harmless from applicable congestion charges; or (3) exempt from an applicable congestion management methodology within the Midwest ISO. The language of subsection (c) is intended to provide the Commission with flexibility in taking into account the policies, as opposed to the strict letter of subsections (b) (1), (b) (2), and (b)(3) as well as other considerations reflected in the Act, such as reliability and system-wide customer costs, in addressing allocation methodology changes proposed by the Midwest ISO.
Section 1236. Protection of transmission contracts in the Pacific Northwest
Section 1236 protects firm transmission rights of entities in the Pacific Northwest by allowing only voluntary conversion of firm to financial transmission rights.
Section 1241. Transmission infrastructure investment
Section 1241 directs FERC to issue rules on transmission pricing policies that provide a return on equity that attracts capital for investment in grid improvements and advanced transmission technologies. This section directs FERC to allow for the recovery of all prudently incurred costs necessary to comply with reliability standards and Federal back-stop siting needs.
Section 1242. Funding new interconnection and transmission upgrades
Section 1242 authorizes FERC to approve a participant funding cost allocation plan, without regard to whether the applicant is in a Transmission Organization, as long as it results in just and reasonable rates.
Section 1251. Net metering and additional standards
Section 1251 amends PURPA section 111(d) to require States to consider implementing standards in the following areas:
(1) net metering (a requirement that utilities make net metering, regarding on-site energy production, measurement and billing, available to any electric consumer);
(2) fuel diversity (a requirement that utilities reduce dependency on a single fuel source and increase fuel diversity, including the use of renewables); and
(3) fossil fuel generation efficiency (a requirement that utilities implement 10 year plans to increase fossil fuel efficiency).
Section 1252. Smart metering
Section 1252 amends PURPA section 111(d) to require States to consider implementing smart metering standards that require electric utilities to offer time based rate schedules (such as time-of-use pricing, critical-peak pricing, and real-time pricing) that enable customers to manage energy use and cost through advanced metering and communications technology.
Section 1253. Cogeneration and small power production purchase and sale requirements
Section 1253 amends PURPA section 210 by ensuring that qualifying facilities (QFs) meet specific criteria to be eligible for mandatory purchase and sale benefits and that such benefits terminate when a competitive wholesale market exists. This section sets forth new criteria for future QFs to ensure that they are fundamentally designed to support commercial or industrial processes.
Section 1254. Interconnection
Section 1254 amends PURPA section 111(d) to require States to consider best practices for promoting interconnection for distributed generation.
Section 1261. Market transparency rules
Section 1261 authorizes FERC to establish an electronic information system to provide information about the availability and price of wholesale electric energy and transmission services. This section requires FERC to exempt from disclosure information the disclosure of which would be detrimental to the operation of an effective market or which would jeopardize system security. This section provides that this section shall not affect the CFTC's exclusive jurisdiction with respect to commodities under the Commodity Exchange Act. This section provides that FERC shall not compete with private sector publishers of energy prices.
Section 1262. False Statements
Section 1262 amends the FPA to prohibit the filing of false information regarding price of wholesale electricity and availability of transmission capacity.
Section 1263. Market manipulation
Section 1263 amends the FPA to ban any manipulative or deceptive device or contrivance (as those terms are used in section 10(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78j(b))), in connection with the purchase or sale of electricity or FERC jurisdictional transmission services in violation of FERC rules.
Section 1264. Enforcement
Section 1264 amends FPA section 306 to add an electric utility to the list of persons that may file a complaint and adds a transmitting utility to the list of persons against which a complaint may be filed.
Section 1264 mends FPA section 313 to include any electric utility in the procedures for review of Commission orders.
Section 1264 amends FPA section 307 to make electric utilities and transmitting utilities subject to FERC investigations and subject to FERC authority to obtain information regarding wholesale sales of electricity and transmission in interstate commerce.
Section 1264 amends FPA section 316 by increasing criminal penalties for FPA violations to $1 million; 5 years imprisonment; and $25,000 per day fines.
Section 1264 amends FPA section 316A by repealing exemption from criminal penalties violations of sections 211-214.
Section 1264 amends FPA section 316A by extending civil penalties to any violation of Part II of the FPA and increases civil penalties to $1 million per day.
Section 1265. Refund effective date
Section 1265 amends FPA section 206 by making the refund effective date the date of the filing instead of 60 days later.
Section 1266. Refund authority
Section 1266 amends FPA section 206(f) to provide that if an entity described in section 201(f) voluntarily makes a short-term (i.e., less than 31 days) sale of electricity that violates Commission rules, the entity shall be subject to FERC refund authority. The refund authority would not apply to municipal or Federal utilities that sell less than 8 million MWh of electricity per year or any electric co-ops. Special provisions are included for the Bonneville Power Administration (refund authority is limited to sales at unjust and unreasonable rates, and only for BPA sales that were higher than the highest just and reasonable rate charged by other sellers in the same geographic market). With respect to TVA and the PMAs, FERC's authority is limited to ordering refunds to achieve just and reasonable rates.
Section 1267. Consumer privacy and unfair trade practices
Section 1267 requires the FTC to issue rules to protect electric consumers from disclosure of consumer information obtained in connection with the sale or delivery of electricity. This section requires FTC to issue rules prohibiting slamming (switching customers' service without consent) and cramming (charging customers for services not requested).
Section 1268. Office of Consumer Advocacy
Section 1268 establishes within DOE an Office of Consumer Advocacy to represent energy customers on matters regarding rates or services of public utilities and natural gas companies at FERC hearings and in civil proceedings.
Section 1269. Authority of court to prohibit persons from serving as officers, directors, and energy traders
Section 1269 allows courts to prevent anyone who manipulates markets from serving as officers or directors of electric utility companies or engaging in the business of selling or purchasing electric or transmission services jurisdictional to FERC.
Section 1270. Relief for extraordinary violations
Section 1270 gives FERC exclusive jurisdiction to determine whether termination payments required by certain Western Interconnection contracts are unjust and unreasonable.
Section 1271. Short Title
Section 1271 is self-explanatory.
Section 1272. Definitions
Section 1272 is self-explanatory.
Section 1273. Repeal of the Public Utility Holding Company Act of 1935
Section 1273 repeals the Public Utility Holding Company Act of 1935 (PUHCA).
Section 1274. Federal access to books and records
Section 1274 gives FERC authority to require that each holding company, associate company and affiliate company make available to FERC books, accounts and records that FERC determines are relevant to costs incurred by a public utility or natural gas company that is an associate of a holding company and that are necessary and appropriate to protect utility customers with respect to jurisdictional rates.
Section 1275. State access to books and records
Section 1275 provides that upon request of a State commission having jurisdiction to regulate a public utility company in a holding company system, and under conditions to ensure confidentiality of trade secrets or sensitive commercial information, a holding company, associate company or affiliate company is to make available to the State commission books, accounts and records that have been identified in a proceeding of the State commission and that the State commission determines are relevant to costs incurred by such public utility company and that are necessary and appropriate to protect utility customers with respect to jurisdictional rates. States can obtain books and records under state law or other applicable Federal law.
Section 1276. Exemption authority
Section 1276 provides that not later than 90 days after the date of enactment, FERC is to promulgate a final rule exempting from the Federal books and records requirement any person that is a holding company solely with respect to a qualifying facility, exempt wholesale generator, or foreign utility companies. FERC can exempt other records for any class of transactions that it finds are not relevant to jurisdictional rates.
Section 1277. Affiliate transactions
Section 1277 preserves the authority of FERC or a State commission to determine if a jurisdictional public utility company can recover in rates costs incurred through transactions with affiliates.
Section 1278. Applicability
Section 1278 provides that PUHCA provisions do not apply to the U.S. Government, any state or political subdivision, any foreign government authority not operating in the United States, or any agency, authority or instrumentality of any of the above.
Section 1279. Effect on other regulations
Section 1279 preserves authorities of FERC or State commissions under other applicable law.
Section 1280. Enforcement
Section 1280 authorizes FERC to use its enforcement authorities under the FPA to enforce this subtitle.
Section 1281. Savings provisions
Section 1281 permits continuation of activities authorized as of the date of enactment and preserves FERC authority under the FPA and the Natural Gas Act.
Section 1282. Implementation
Section 1282 authorizes FERC to promulgate regulations to implement this subtitle and to submit recommendations to Congress for technical and conforming amendments within 4 months of enactment.
Section 1283. Transfer of resources
Section 1283 provides that the Securities and Exchange Commission is to transfer books and records to FERC.
Section 1284. Effective date
Section 1284 provides that this subtitle takes effect 6 months after the date of enactment.
Section 1285. Service allocation
Section 1285 allows FERC to allocate non-power services among associate companies in a holding company for the protection of investors and consumers.
Section 1286. Authorization of appropriations
Section 1286 authorizes such funds as may be necessary to carry out this subtitle.
Section 1287. Conforming amendments to the Federal Power Act
Section 1287 repeals FPA section 318, dealing with conflicts in jurisdiction between PUHCA and the FPA.
Section 1288. Merger review reform
Section 1288 expands FERC's merger review authority and increases transaction value thresholds from $50,000 to $10 million. Section 1288 provides FERC jurisdiction over acquisitions of generation facilities used in interstate commerce and acquisitions by public-utility companies of gas utility companies. Section 1288 requires FERC to consider factors such as effects on markets, rates, and regulation when evaluating whether a transaction is consistent with the public interest. Section 1288 also requires FERC to make an additional finding that a transaction will not result in cross-subsidizations of associate companies to the detriment of the utility.
Section 1291. Definitions
Section 1291 clarifies the FPA definition of electric utility to include any entity described in section 201(f) of the Federal Power Act (FPA) that sells electric energy and adds Federal power marketing agencies to the definition.
Section 1291 adds to the FPA a new definition of transmitting utility. Under the new definition, a transmitting utility is an entity, including an entity described in FPA section 201(f), that owns, operates or controls facilities used for the transmission of electric energy in interstate commerce or for the sale of electric energy at wholesale. This definition includes Transmission Organizations.
Section 1291 adds to the FPA a new definition for electric cooperative. Under the new definition, an electric cooperative is a cooperatively owned electric utility.
Section 1291 adds to the FPA a new definition for RTO. Under the new definition, an RTO is an entity of sufficient regional scope approved by FERC to exercise operational/functional control of interstate transmission facilities and to assure nondiscriminatory access to such facilities.
Section 1291 adds to the FPA a new definition for ISO. Under the new definition, an ISO is an entity approved by FERC to exercise operational/functional control of interstate transmission facilities and to assure nondiscriminatory access to such facilities.
Section 1291 adds to the FPA a new definition for Transmission Organization. Under the new definition, a Transmission Organization is an RTO, ISO, independent transmission provider or other transmission organization finally approved by FERC for the operation of transmission facilities.
Section 1291 amends FPA section 201(f) to include electric cooperatives that are either financed under the Rural Electrification Act or that sell less than 4 million MWh of electricity per year.
The Week In Congress Summary
Alaska Drilling
The ANWR (called the Arctic Coastal Plain in the bill) involves 1.5 million acres that would be open to exploration, development and production activities with the exception of 45,000 acres around Kartouk City and 4,000 acres called Sadlerochit Spring. Although those areas are excluded from trespass any oil beneath the surface can be extracted by horizontal drilling from nearby property. Fifty percent of oil profits would be returned to the State of Alaska. {Editor’s Note: The ANWR is reported to hold 10 billion barrels or enough oil to meet US needs for about 14 months.}
Additives and the MTBE Issue.
What goes in gasoline will be purely a Federal matter as the bill would prohibit States from prohibiting additives. The provision does more than impact State’s rights to prohibit MTBE, the carcinomic additive that replaced lead in motor fuel some years back. The prohibition would also block State’s ability to order what are known as ‘boutique fuels’ or gasoline blends that are mixed differently to reduce pollution at different times of the year and in areas that suffer from air pollution. The reduction of ‘boutique fuels’ is expected to drop the price of gas by around 6 cents per gallon. MTBE is to be phased out by December 2014 and $250 million would help producers make the transition. Because producers of MTBE have been subject to lawsuits the bill would exclude American producers of the additive from legal liability for pollution and human health damages. Canadian producers were not mentioned. Excise taxes on diesel fuel would be reduced from 24.3 cents to 19.7 cents.
Electricity
Electricity provisions centered on studying the reliability and further development of the infrastructure. The Public Utilities Holding Company, a long standing oversight company, is abolished leaving, opponents say, less regulation to protect the general public. Disposal of and merger of electric companies can go forward without oversight if their worth is less than $10 million.
Exploration Incentives, Home Heating Oil Reserve; Strategic Petroleum Reserve.
Natural gas exploration is to be inspired by limiting royalties paid on gas extracted. Royalty reductions (along with extremely high prices at the pump) would hope to inspire oil exploration where it was once too expensive to look such as the reported 2 trillion barrels in American shale rock. The Home Heating Oil Petroleum Reserve will continue but deliveries to the Strategic Petroleum Reserve are suspended for royalty-in-kind deliveries until the price of oil drops below $40 per barrel.
Environmental Matters.
Environmental provisions did not have their own title in the bill but popped up here and there: Research and development would look to efficiency and would look particularly at efficiency at industries that represent more than one percent of total national energy use. R&D would also spend $583 million in 2006 to learn how to capture CO² from coal combustion in ten years. Nuclear R&D would study ways to better recycle nuclear waste. The environmental impact of energy efficiency should be improved by programs focusing on energy efficiency and the use of photovoltaic devises in federal buildings, assistance to States for low income weatherization and other public housing efficiency programs and the development of energy efficient products and efficient appliances. Leaking underground fuel tanks would be inspected within two years by the states. The cost involved in rectifying fuel leaks is partially born by a fuel tax that helps pay for the cleanup, but bill opponents say the legislation would increase cost to the States for cleanup.
Nuclear Energy.
Nuclear energy still touted to be the cleanest despite producing waste that lives dangerously for thousands of years would see $150 million to study what is called ‘the next generation of nuclear reactors’. A prototype reactor would be built using up to $500 million. Companies operating reactors in the US and elsewhere would be indemnified from liability. The Department of Energy would indemnify to $10 billion over the required liability coverage any contractor doing business with the DoE. The bill would prohibit exports of nuclear waste to terrorist countries but allows for a Presidential waiver on that prohibition under specific conditions. Nuclear power plant contractors are covered by $95 million.
Vehicle Issues.
The bill looks at most vehicles for improvement of fuel use or economy. Grants for hydrogen propelled buses and hybrid car use are proposed. Hybrid vehicles would be allowed in HOV lanes with only one person in the vehicle and auto efficiency studies are proposed. Commercial trucks and perhaps buses that might stop overnight at a truck stop often leave the engine idling to power heat or air conditioning in the cab where the driver is resting. The bill requires looking at the possibilities of ‘engine idling prevention’ by using an auxiliary heat, ac, engine warming and electricity devise.
Renewable Energy Sources
Grants as incentives are available for renewable energy research and development as well as revitalizing idle or underutilized petroleum refineries. Can hydrogen be economically extracted from fossil fuels, biomass or nuclear energy development? That and other prospects are seen in the bill as growth industries as yearly grants are available and include solar ($100 million), biomass ($200 million), wind ($55 million), geothermal ($30 million) and photovoltaic ($50 million). A pilot program to determine the viability of extracting ethanol from sugar cane would be carried out in the State of Hawaii.
Energy Efficiency
The bill's most publicized provision is the change in Daylight Saving's Time that would start a month earlier in March and end a month later in November. A report on the impact of that decision would be required in nine months after enactment of the bill into law. The bill also looks to public buildings for energy savings but the requirements are more towards studying the problem and possibilities and educating users about energy efficient behavior in the workplace. Congress would spend $2 million yearly to reduce energy use in Congressional buildings by 20% by 2025.
Big energy user businesses could find themselves in a contract with the Secretary of Energy to find ways of reducing energy use. The program is voluntary.
The bill also aims to reduce energy through weatherization assistance and would spend $500 million in 2006 adding $100 million yearly through 2008. About $50 million would be used for energy efficient appliance purchases at the State level. $20 million in grants would hope to improve energy efficiency in low income community public buildings and FHA mortage insurance would also see some relief for energy efficient single- and multi-family housing. Consumers would find some educational efforts regarding maintenance of home heating and air conditioning systems and energy use per product would be labeled on the product within two years.
Increasing Production
With no new refineries built since 1976 the US ability to produce gasoline is limited. To 'revitalize' the refinery industry the bill would designate as a Refinery Revitalization Zone any area that has had mass layoffs in the manufacturing sector or has an idle refinery and has an unemployment rate that "exceeds the national average by ten percent of the national average." So, if the average is 6 percent the area unemployment rate must be 6.6 percent to qualify. Permitting involving several Federal agencies would be coordinated and expedited.
1. H.AMDT.70 to make various technical and conforming changes.
Sponsor: Rep Hall, Ralph M. [TX-4] 4/20/2005 Agreed to by voice vote.
2. H.AMDT.71 to authorize FERC to deter and punish fraud and
manipulation in electricity and gas markets, increase penalties for Federal
Power Act violations, authorizes FERC to refund all electricity overcharges,
does not repeal the PUHCA, and directs the SEC to review utility holding
companies' status under PUHCA to prevent them from wrongly claiming exemptions.
The amendment retains a number of valuable provisions from Title XII, such as
"open acess" for public power entities, and does not modify the "native load"
provisions adopted in the Energy and Commerce Committee. The amendment retains
Title XII's electric transmission provision, including the spending caps.
Sponsor: Rep Dingell, John D. [D-MI-15] (4/20/2005 Failed by recorded
vote: 188 - 243 (RC123).
3. H.AMDT.72 to strike the provisions of the bill that will allow oil
and gas exploration in the Arctic National Wildlife Refuge.
Sponsor: Rep Markey, Edward J. [D-MA-7] 4/20/2005 Failed by recorded
vote: 200 - 231 (RC122).
4. H.AMDT.73 to direct the Secretary of Transportation to increase
fuel economy standards from today's average of 25 mpg to 33 mpg over 10 years
(by 2015), consistent with the findings of the National Academy of Sciences, in
order to save 10% of the gasoline the nation would otherwise consume by 2015.
The amendment also directs the Secretary to maximize job retention in the
American auto manufacturing sector and to prevent taking actions that would
reduce safety.
Sponsor: Rep Boehlert, Sherwood [D-NY-24] (4/20/2005) Failed by recorded
vote: 177 - 254 (RC121).
5. H.AMDT.74 to require that the EPA's fuel economy test procedures
reflect current driving patterns and conditions and provide consumers with more
accurate information about fuel economy.
Sponsor: Rep Johnson, Nancy L. [D-CT-5] 4/20/2005 Agreed to by recorded
vote: 346 - 85 (RC120).
6. H.AMDT.75 to the amendment offered by Mrs. Johnson of Connecticut.
The amendment directs the Administrator of the EPA to revise certain Federal
vehicle fuel economy adjustment factors to take into consideration higher speed
limits, faster acceleration rates, variations in temperature, use of air
conditioning, shorter city test cycle lengths, and the use of other fuel
depleting features to provide consumers with accurate fuel economy information
on new vehicle labels.
Sponsor: Rep Rogers, Mike [R-MI-8] 4/20/2005 Agreed to by recorded vote:
259 - 172 (RC
119).
7. H.AMDT.76 to help lower gas prices, increase energy efficiency
standards, and eliminate special interest subsidies and instead invest those
resources in new technology with the idea of creating a better energy future.
Sponsor: Rep Bishop, Timothy H. [D-NY-1] 4/20/2005 Failed by recorded
vote: 170 - 259 (RC
118).
8. H.AMDT.77 to require any escalator being installed in federal
buildings to be an Intermittent Escalator. In addition, federal agencies would
also be encouraged to incorporate other escalator energy conservation measures.
Sponsor: Rep Slaughter, Louise McIntosh [NY-28] 4/20/2005 Agreed to by
voice vote.
9. H.AMDT.78 to authorize $20 million for the Administrator of GSA to
proceed with the Sun Wall Design Project, the winning entry in a national design
competition sponsored jointly by DOE and the National Renewable Energy
Laboratory, to install a photovoltaic solar electric system on the headquarters
building of DOE.
Sponsor: Rep Dingell, John D. [D-MI-15] 4/20/2005 Agreed to by voice
vote.
10. H.AMDT.79 to require the Administration to take "voluntary,
regulatory, and other actions" to reduce oil demand in the U.S. by 1 million
barrels per day from projected levels by 2013.
Sponsor: Rep Waxman, Henry A. [D-CA-30] (4/20/2005) Failed by recorded
vote: 166 - 262 (RC
117).
11. H.AMDT.80 to authorize a 3-year demonstration program for the
production of ethanol in Hawaii to parallel the existing program for corn to
show that the process can be applicable to cane sugar and can be replicated on
larger scale once the sugar cane industry has site located and constructed
ethanol production facilities.
Sponsor: Rep Abercrombie, Neil [D-HI-1] (4/20/2005) Agreed to by voice
vote.
12. H.AMDT.81 to provide the Secretary of Energy the authority to
include in the Strategic Petroleum Reserve alternative fuels, including ethanol
and biodiesel and rename the reserve the "Strategic Fuels Reserve".
Sponsor: Rep Kaptur, Marcy [OH-9] 4/20/2005 Failed by recorded vote: 186
- 239 (RC
116).
13. H.AMDT.82 to provide that DOE, in consultation with the
Department of Labor, will evaluate and report on both the short term and longer
term availability of skilled workers to meet the energy security of the United
States, addressing the availability of skilled labor at both entry level and at
more senior levels in the oil, gas, and mineral industries.
Sponsor: Rep Conaway, K. Michael [TX-11] 4/20/2005 Agreed to by voice
vote.
14. H.AMDT.83 to strike all of Title III, Subtitle D, the Refinery
Revitalization Act.
Sponsor: Rep Solis, Hilda L. [D-CA-32] 4/20/2005 Failed by recorded vote:
182 - 248 (RC115).
15. H.AMDT.84 to strike section 631.
Sponsor: Rep Udall, Tom [NM-3] 4/21/2005 Failed by recorded vote: 204 -
225 (RC
124).
16. H.AMDT.85 to authorize a total of $3 billion over ten years for a
program to encourage the domestic production of hybrid and advanced vehicle
diesel vehicles by providing grants to manufacturers and incentives to customers
to purchase such vehicles.
Sponsor: Rep Ford, Harold E., Jr. [TN-9] 4/21/2005 Agreed to by voice
vote.
17. H.AMDT.86 to increase the number of project grants to local
governments under the pilot program for the Energy Department's Clean Cities
program from 15 to 30, and reduces the amount of the maximum grant from $20
million to $15 million.
Sponsor: Rep Kucinich, Dennis J. [D-OH-10] 4/21/2005 Agreed to by voice
vote.
18. H.AMDT.87 to create a Diesel Truck Retrofit and Fleet Modernization
Program.
Sponsor: Rep Millender-McDonald, Juanita [D-CA-37] 4/21/2005 Agreed to by
voice vote.
19. H.AMDT.88 to establish the Conserve by Bicycle Program.
Sponsor: Rep Blumenauer, Earl [OR-3] 4/21/2005 Agreed to by voice vote.
20. H.AMDT.89 to earmark $5 million annually for bioenergy training and
education targeted to minority and socially disadvantaged farmers and ranchers.
Sponsor: Rep Jackson-Lee, Sheila [D-TX-18] 4/21/2005 Agreed to by voice
vote.
21. H.AMDT.90 to strike section 978, which would create 2 new,
Senate-confirmed assistant secretary positions within the Department of Energy.
Sponsor: Rep Davis, Tom [R-VA-11] (4/21/2005 Agreed to by voice vote.
22. H.AMDT.91 to establish an annual award for organizations that have
advanced the field of renewable energy technology.
Sponsor: Rep Walsh, James T. [NY-25] 4/21/2005 Agreed to by voice vote.
23. H.AMDT.92 to make producers of "approved renewable fuels" eligible
for grants to build production facilities for renewable fuels.
Sponsor: Rep Engel, Eliot L. [D-NY-17] 4/21/2005 Agreed to by recorded
vote: 239 - 190 (RC125).
24. H.AMDT.93 to direct the Comptroller General of the United States to
conduct a study on the impact of the consolidation of gasoline wholesales (and
above) on the gasoline retail market.
Sponsor: Rep Israel, Steve [D-NY-2] 4/21/2005 Agreed to by recorded vote:
302 - 128 (RC
126).
25. H.AMDT.94 to authorize a National Academy of Sciences study on the
feasibility of mustard seed as a feedstock for biodiesel.
Sponsor: Rep Kucinich, Dennis J. [D-OH-10] 4/21/2005 Agreed to by
recorded vote: 259 - 171 (RC
127).
26. H.AMDT.95 to require the Secretary of Energy, within 2 years of
enactment, to report to Congress on the potential fuel savings from information
technology systems that help businesses and consumers to plan their travel and
avoid delays.
Sponsor: Rep Holt, Rush D. [NJ-12] 4/21/2005 Agreed to by voice vote.
27. H.AMDT.96 to strike section 2005 which requires the Secretary of the
Interior to suspend the collection of royalty payments to the Treasury for
offshore oil and gas production on the OCS in the Gulf of Mexico.
Sponsor: Rep Grijalva, Raul M. [AZ-7] 4/21/2005 Failed by recorded vote:
203 - 227 (RC
128).
28. H.AMDT.97 to reduce by 50% any royalty payments, excluding the costs
of processing the rights-of-way, for wind energy generation that otherwise would
be paid to the Treasury on BLM lands. This royalty relief provision terminates
after 10 years of enactment or after the Secretary declares there exists a
generation capacity of at least 10,000 megawatts of electricity from renewable
sources on public lands, whichever is sooner.
Sponsor: Rep Inslee, Jay [WA-1] 4/21/2005 Agreed to by voice vote.
29. H.AMDT.98 to expand the definition of environmental justice; to
direct each Federal Agency to establish an office of environmental justice; to
reestablish the interagency Federal Working Group on Environmental Justice; and
to require that Executive Order 12898 remain in force until changed by law.
Sponsor: Rep Hastings, Alcee L. [D-FL-23] 4/21/2005 Failed by recorded
vote: 185 - 243 (RC
130).
30. H.AMDT.99 to strike language in the bill (section 320 of title III)
which would preempt the authority of state and local governments to ensure that
liquefied natural gas (LNG) facilities are sited in areas where they do not pose
a threat to public safety, and the states' authority to ensure that such
facilities are not sited in places where they pose a threat to sensitive coastal
and ocean areas.
Sponsor: Rep Castle, Michael N. [D-DE] 4/21/2005 Failed by recorded vote:
194 - 237 (RC
131).
{A motion by Rep. Capps of California to strike reference to the gasoline additive MTBE from sections of the bill failed 213 to 219 (RC129)
39. S.AMDT.779 to eliminate methyl tertiary butyl ether from the United
States fuel supply, to increase production and use of renewable fuel, and to
increase the Nation's energy independence.
Sponsor: Sen Domenici, Pete V. [R-NM] (introduced 6/14/2005)
Cosponsors (21)
Latest Major Action: 6/15/2005 Senate amendment agreed to. Status:
Amendment SA 779 as modified agreed to in Senate by Yea-Nay Vote. 70 - 26.
RV
139.
41. S.AMDT.781 to ensure that ethanol is treated like all other motor
vehicle fuels and that taxpayers and local governments do not have to pay for
environmental damage caused by ethanol.
Sponsor: Sen Boxer, Barbara [D-CA] (introduced 6/14/2005) Cosponsors
(None)
Latest Major Action: 6/14/2005 Motion to table amendment SA 781 agreed to
in Senate by Yea-Nay Vote. 59 - 38.
RV 137.
42. S.AMDT.782 to strike the reliable fuels subtitle of the amendment.
Sponsor: Sen Schumer, Charles E. [D-NY] (introduced 6/14/2005) Cosponsors
(None)
Latest Major Action: 6/15/2005 Motion to table amendment SA 782 agreed to
in Senate by Yea-Nay Vote. 69 - 28.
RV138.
43. S.AMDT.783 to H.R.6 To strike the section providing for a
comprehensive inventory of Outer Continental Shelf oil and natural gas
resources.
Sponsor: Sen Nelson, Bill [D-FL] (introduced 6/14/2005) Cosponsors
(13)
Latest Major Action: 6/21/2005 Senate amendment not agreed to. Status:
Amendment SA 783 not agreed to in Senate by Yea-Nay Vote. 44 - 52.
RV 143.
44. S.AMDT.784 to improve the energy security of the United States and
reduce United States dependence on foreign oil imports by 40 percent by 2025.
Sponsor: Sen Cantwell, Maria [D-WA] (introduced 6/15/2005)
Cosponsors (3)
Latest Major Action: Status: Amendment SA 784 not agreed to in Senate by
Yea-Nay Vote. 47 - 53.
RV 140.
46. S.AMDT.786 to make energy generated by oceans eligible for renewable
energy production incentives and to modify the definition of the term "renewable
energy" to include energy generated by oceans for purposes of the Federal
purchase requirement.
Sponsor: Sen Murkowski, Lisa [R-AK] (introduced 6/15/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 786 agreed to in Senate by Unanimous Consent.
47. S.AMDT.787 to H.R.6 To make Alaska Native Corporations eligible for
renewable energy production incentives.
Sponsor: Sen Murkowski, Lisa [R-AK] (introduced 6/15/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 787 agreed to in Senate by Unanimous Consent.
48. S.AMDT.788 to H.R.6 To amend the Sherman Act to make oil-producing
and exporting cartels illegal.
Sponsor: Sen DeWine, Mike [R-OH] (introduced 6/15/2005) (17)
Latest Major Action: 6/21/2005 Senate amendment agreed to. Status:
Amendment SA 788 agreed to in Senate by Voice Vote.
51. S.AMDT.791 to establish a renewable portfolio standard.
Sponsor: Sen Bingaman, Jeff [NM] (introduced 6/16/2005) Cosponsors
(14)
Latest Major Action: 6/16/2005 Senate amendment agreed to. Status:
Amendment SA 791 agreed to in Senate by Yea-Nay Vote. 50 - 48.
RV 141.
54. S.AMDT.794 to H.R.6 To make certain improvements to the bill relative
to the institution of higher education, high performance building standards, and
to provide for a study of overall employment in a hydrogen economy.
Sponsor: Sen Domenici, Pete V. [R-NM] (introduced 6/16/2005)
Cosponsors (1)
Latest Major Action: 6/16/2005 Senate amendment agreed to. Status:
Amendment SA 794 agreed to in Senate by Unanimous Consent.
58. S.AMDT.798 to require the submission of reports on the potential
for biodiesel and hythane to be used as major, sustainable, alternative fuels.
Sponsor: Sen Pryor, Mark L. [R-AR] (introduced 6/20/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 798 agreed to in Senate by Unanimous Consent.
59. S.AMDT.799 to make grants and loans to States and other organizations
to strengthen the economy, public health and environment of the United States by
reducing emissions from diesel engines.
Sponsor: Sen Voinovich, George V. [R-OH] (introduced 6/20/2005)
Cosponsors (14)
Latest Major Action: 6/21/2005 Senate amendment agreed to. Status:
Amendment SA 799 agreed to in Senate by Yea-Nay Vote. 92 - 1.
RV145.
60. S.AMDT.800 to amend the Internal Revenue Code of 1986 to provide
energy policy tax incentives.
Sponsor: Sen Grassley, Chuck [R-IA] (introduced 6/20/2005)
Cosponsors (1)
Latest Major Action: 6/20/2005 Senate amendment agreed to. Status:
Amendment SA 800 agreed to in Senate by Unanimous Consent.
65. S.AMDT.805 to express the sense of the Senate regarding management of
the Strategic Petroleum Reserve to lower the burden of gasoline prices on the
economy of the United States and circumvent the efforts of OPEC to reap windfall
profits.
Sponsor: Sen Schumer, Charles E. [D-NY] (introduced 6/20/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Motion to table amendment SA 805 agreed to
in Senate by Yea-Nay Vote. 57 - 39. RV147.
77. S.AMDT.817 to provide for the conduct of activities that promote the
adoption of technologies that reduce greenhouse gas intensity in the United
States and in developing countries and to provide credit-based financial
assistance and investment protection for projects that employ advanced climate
technologies or systems in the United States.
Sponsor: Sen Hagel, Chuck [NE] (introduced 6/21/2005) Cosponsors (8)
Latest Major Action: 6/21/2005 Senate amendment agreed to. Status:
Amendment SA 817 agreed to in Senate by Yea-Nay Vote. 66 - 29.
RV 144.
78. S.AMDT.818 To commission a study for the roof of the Dirksen Senate
Office Building in a manner that facilitates the incorporation of energy
efficient technology and amends the Master Plan for the Capitol complex.
Sponsor: Sen Jeffords, James M. [I-VT] (introduced 6/21/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 818 agreed to in Senate by Unanimous Consent.
82. S.AMDT.822 to promote fuel efficient engine technology for aircraft.
Sponsor: Sen Voinovich, George V. [R-OH] (introduced 6/21/2005)
Cosponsors (1)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 822 agreed to in Senate by Unanimous Consent.
86. S.AMDT.826 to provide for a program to accelerate the reduction of
greenhouse gas emissions in the United States.
Sponsor: Sen McCain, John [R-AZ] (introduced 6/21/2005) Cosponsors
(1)
Latest Major Action: 6/22/2005 Senate amendment not agreed to. Status:
Amendment SA 826 not agreed to in Senate by Yea-Nay Vote. 38 - 60.
RV 148.
95. S.AMDT.835 to establish a National Priority Project Designation.
Sponsor: Sen Clinton, Hillary Rodham [D-NY] (introduced 6/21/2005)
Cosponsors (1)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 835 agreed to in Senate by Unanimous Consent.
99. S.AMDT.839 to require any Federal agency that
publishes a science-based climate change document that was significantly altered
at White House request to make an unaltered final draft of the document publicly
available for comparison.
Sponsor: Sen Lautenberg, Frank R. [D-NJ] (introduced 6/21/2005)
Cosponsors (4)
Latest Major Action: 6/22/2005 Considered by Senate.
101.
S.AMDT.841 to prohibit the Commission from approving an application for the
authorization of the siting, construction, expansion, or operation of facilities
located onshore or in State waters for the import of natural gas from a foreign
country or the export of natural gas to a foreign country without the approval
of the Governor of the State in which the facility would be located.
Sponsor: Sen Feinstein, Dianne [D-CA] (introduced 6/22/2005)
Cosponsors (14)
Latest Major Action: 6/22/2005 Motion to table amendment SA 841 agreed to
in Senate by Yea-Nay Vote. 52 - 45.
RV 146.
104. S.AMDT.844 to express the sense of the Senate regarding the need for
the United States to address global climate change through comprehensive and
cost-effective national measures and through the negotiation of fair and binding
international commitments under the United Nations Framework Convention on
Climate Change.
Sponsor: Sen Kerry, John F. [D-MA] (introduced 6/22/2005) Cosponsors
(3)
Latest Major Action: 6/22/2005 Senate amendment not agreed to. Status:
Amendment SA 844 not agreed to in Senate by Yea-Nay Vote. 46 - 49.
RV 151.
110. S.AMDT.850 to modify the section relating to the establishment of
a National Power Plant Operations Technology and Education Center.
Sponsor: Sen Dorgan, Byron L. [D-ND] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 850 agreed to in Senate by Unanimous Consent.
121. S.AMDT.861 to require the Secretary to enter into a contract with
the National Academy of Sciences to determine the effect of electrical
contaminants on the reliability of energy productions systems.
Sponsor: Sen Dodd, Christopher J. [D-CT] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 861 agreed to in Senate by Unanimous Consent.
124. S.AMDT.864 to ensure that cost-effective procedures are used to fill
the Strategic Petroleum Reserve.
Sponsor: Sen Levin, Carl [D-MI] (introduced 6/22/2005) Cosponsors
(3)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 864 agreed to in Senate by Unanimous Consent.
126. S.AMDT.866 to express the sense of the Senate on climate change
legislation.
Sponsor: Sen Bingaman, Jeff [D-NM] (introduced 6/22/2005) Cosponsors
(12)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 866 as modified agreed to in Senate by Voice Vote.
129. S.AMDT.869 to amend the Internal Revenue Code of 1986 to provide
relief from high gas prices.
Sponsor: Sen Byrd, Robert C. [D-WV] (introduced 6/22/2005)
Cosponsors (4)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 869 agreed to in Senate by Voice Vote.
130. S.AMDT.870 to require the Federal Energy Regulatory Commission to
complete its investigation and order refunds on the unjust and unreasonable
rates charged to California during the 2000-2001 electricity crisis.
Sponsor: Sen Boxer, Barbara [D-CA] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 870 agreed to in Senate by Unanimous Consent.
187.
S.AMDT.927 o
provide a budget roadmap for the transition from petroleum to hydrogen in
vehicles by 2020.
Sponsor:
Sen Levin, Carl [D-MI] (introduced 6/22/2005) Cosponsors (None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 927 agreed to in Senate by Unanimous Consent.
221.
S.AMDT.961 To
provide for local control for the sitting of windmills.
Sponsor:
Sen Alexander, Lamar [TN] (introduced 6/22/2005) Cosponsors
(8)
Latest Major Action: 6/22/2005 Senate amendment not agreed to. Status:
Amendment SA 961 not agreed to in Senate by Yea-Nay. 32 - 63.
RV 150.
237.
S.AMDT.978 To
clarify the definition of coal to liquid fuel technology.
Sponsor:
Sen Obama, Barack [IL] (introduced 6/22/2005) Cosponsors
(2)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 978 agreed to in Senate by Unanimous Consent.
238.
S.AMDT.979 To
promote oil shale and tar sands development.
Sponsor:
Sen Hatch, Orrin G. [UT] (introduced 6/22/2005) Cosponsors
(1)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 979 agreed to in Senate by Unanimous Consent.
239.
S.AMDT.980 To
require an investigation of gasoline prices.
Sponsor:
Sen Stabenow, Debbie [MI] (introduced 6/22/2005) Cosponsors
(2)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 980 agreed to in Senate by Unanimous Consent.
240.
S.AMDT.981 To
require the Secretary and the Administrator for Small Business to coordinate
assistance with the Secretary of Commerce for manufacturing related efforts.
Sponsor:
Sen Kohl, Herb [WI] (introduced 6/22/2005) Cosponsors
(2)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 981 agreed to in Senate by Unanimous Consent.
241.
S.AMDT.982 To
require the Secretary to conduct a study of best management practices for energy
research and development programs.
Sponsor:
Sen Alexander, Lamar [TN] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 982 agreed to in Senate by Unanimous Consent.
242.
S.AMDT.983 To
expand the types of qualified renewable energy facilities that are eligible for
a renewable energy production incentive.
Sponsor:
Sen Jeffords, James M. [VT] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 983 agreed to in Senate by Unanimous Consent.
243.
S.AMDT.984 To
require the Secretary to establish a program of research, development,
demonstration, and commercial application to maximize the productive capacity of
marginal wells and reservoirs.
Sponsor:
Sen Cornyn, John [TX] (introduced 6/22/2005) Cosponsors (None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 984 agreed to in Senate by Unanimous Consent.
244.
S.AMDT.985 To
make petroleum coke gasification projects eligible for certain loan guarantees.
Sponsor:
Sen Hutchison, Kay Bailey [TX] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 985 agreed to in Senate by Unanimous Consent.
245.
S.AMDT.986 To
authorize the Secretary of Energy to make grants to increase energy efficiency,
promote siting or upgrading of transmission and distribution lines, and
providing or modernizing electric facilities in rural areas.
Sponsor:
Sen Jeffords, James M. [VT] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 986 agreed to in Senate by Unanimous Consent.
246.
S.AMDT.987 To
require the Secretary to conduct a study on passive solar technologies.
Sponsor:
Sen Alexander, Lamar [TN] (introduced 6/22/2005) Cosponsors
(None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 987 agreed to in Senate by Unanimous Consent
247.
S.AMDT.988 To
require the Secretary to conduct a 3-year program of research, development, and
demonstration on the use of ethanol and other low-cost transportable renewable
feedstocks as intermediate fuels for the safe, energy efficient, and
cost-effective transportation of hydrogen.
Sponsor:
Sen Harkin, Tom [IA] (introduced 6/22/2005) Cosponsors (None)
Latest Major Action: 6/22/2005 Senate amendment agreed to. Status:
Amendment SA 988 agreed to in Senate by Unanimous Consent
THE US COMMISSION ON NORTH AMERICAN ENERGY FREEDOM
THE UNITED STATES COMMISSION ON NORTH AMERICAN ENERGY FREEDOM
(a) Establishment- There is hereby established the United States Commission on North American Energy Freedom (in this title referred to as the `Commission'). The Federal Advisory Committee Act (5 U.S.C. App.), except sections 3, 7, and 12, does not apply to the Commission.
(b) Membership-
(1) APPOINTMENT- The Commission shall be composed of 16 members appointed by the President from among individuals described in paragraph (2) who are knowledgeable on energy issues, including oil and gas exploration and production, crude oil refining, oil and gas pipelines, electricity production and transmission, coal, unconventional hydrocarbon resources, fuel cells, motor vehicle power systems, nuclear energy, renewable energy, biofuels, energy efficiency, and energy conservation. The membership of the Commission shall be balanced by area of expertise to the extent consistent with maintaining the highest level of expertise on the Commission. Members of the Commission may be citizens of Canada, Mexico, or the United States, and the President shall ensure that citizens of all three nations are appointed to the Commission.
(2) NOMINATIONS- The President shall appoint the members of the Commission within 60 days after the effective date of this Act, including individuals nominated as follows:
(A) 4 members shall be appointed from amongst individuals independently determined by the President to be qualified for appointment.
(B) 4 members shall be appointed from a list of 8 individuals who shall be nominated by the majority leader of the Senate in consultation with the chairman of the Committee on Energy and Natural Resources of the Senate.
(C) 4 members shall be appointed from a list of 8 individuals who shall be nominated by the Speaker of the House of Representatives in consultation with the chairmen of the Committees on Energy and Commerce and Resources of the House of Representatives.
(D) 2 members shall be appointed from a list of 4 individuals who shall be nominated by the minority leader of the Senate in consultation with the ranking Member of the Committee on Energy and Natural Resources of the Senate.
(E) 2 members shall be appointed from a list of 4 individuals who shall be nominated by the minority leader of the House in consultation with the ranking Members of the Committees on Energy and Commerce and Resources of the House of Representatives.
(3) CHAIRMAN- The chairman of the Commission shall be selected by the President. The chairman of the Commission shall be responsible for--
(A) the assignment of duties and responsibilities among staff personnel and their continuing supervision; and
(B) the use and expenditure of funds available to the Commission.
(4) VACANCIES- Any vacancy on the Commission shall be filled in the same manner as the original incumbent was appointed.
(c) Resources- In carrying out its functions under this section, the Commission--
(1) is authorized to secure directly from any Federal agency or department any information it deems necessary to carry out its functions under this Act, and each such agency or department is authorized to cooperate with the Commission and, to the extent permitted by law, to furnish such information (other than information described in section 552(b)(1)(A) of title 5, United States Code) to the Commission, upon the request of the Commission;
(2) may enter into contracts, subject to the availability of appropriations for contracting, and employ such staff experts and consultants as may be necessary to carry out the duties of the Commission, as provided by section 3109 of title 5, United States Code; and
(3) shall establish a multidisciplinary science and technical advisory panel of experts in the field of energy to assist the Commission in preparing its report, including ensuring that the scientific and technical information considered by the Commission is based on the best scientific and technical information available.
(d) Staffing- The chairman of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary for the Commission to perform its duties. The executive director shall be compensated at a rate not to exceed the rate payable for Level IV of the Executive Schedule under chapter 5136 of title 5, United States Code. The chairman shall select staff from among qualified citizens of Canada, Mexico, and the United States of America.
(e) Meetings-
(1) ADMINISTRATION- All meetings of the Commission shall be open to the public, except that a meeting or any portion of it may be closed to the public if it concerns matters or information described in section 552b(c) of title 5, United States Code. Interested persons shall be permitted to appear at open meetings and present oral or written statements on the subject matter of the meeting. The Commission may administer oaths or affirmations to any person appearing before it.
(2) NOTICE; MINUTES; PUBLIC AVAILABILITY OF DOCUMENTS-
(A) NOTICE- All open meetings of the Commission shall be preceded by timely public notice in the Federal Register of the time, place, and subject of the meeting.
(B) MINUTES- Minutes of each meeting shall be kept and shall contain a record of the people present, a description of the discussion that occurred, and copies of all statements filed. Subject to section 552 of title 5, United States Code, the minutes and records of all meetings and other documents that were made available to or prepared for the Commission shall be available for public inspection and copying at a single location in the offices of the Commission.
(3) INITIAL MEETING- The Commission shall hold its first meeting within 30 days after all 16 members have been appointed.
(f) Report- Within 12 months after the effective date of this Act, the Commission shall submit to Congress and the President a final report of its findings and recommendations regarding North American energy freedom.
(g) Administrative Procedure for Report and Review- Chapter 5 and chapter 7 of title 5, United States Code, do not apply to the preparation, review, or submission of the report required by subsection (f).
(h) Termination- The Commission shall cease to exist 90 days after the date on which it submits its final report.
(i) Authorization of Appropriations- There is authorized to be appropriated to carry out this chapter a total of $10,000,000 for the 2 fiscal-year period beginning with fiscal year 2005, such sums to remain available until expended.
Congress finds the following:
(1) The three contiguous North American countries of Canada, Mexico, and the United States share many economic, environmental, and security interests, including being among each others' largest trading partners, similar interests in clean air and clean water, concern about infiltration of terrorists from nations that host terrorist organizations, and interdependent economic systems.
(2) North American energy self-sufficiency is consistent with the shared interests of the three contiguous North American countries and should be achieved through methods that recognize and respect the sovereignty of each of the three contiguous North American countries.
(3) The Energy Information Administration (EIA), in its April 2004 International Energy Outlook, projects that world energy consumption will increase by 54 percent from 2001 to 2025 and that world oil consumption will rise from 77 million barrels per day (Mmbbl/d) in 2001 to 121 Mmbbl/d in 2025.
(4) In the same report, EIA projects that, without a change in governmental policy, the United States oil consumption will rise by 44.4 percent from 19.6 Mmbbl/d (7.15 billion barrels per year (Bbbl/y)) in 2001 to 28.3 Mmbbl/d (10.33 Bbbl/y) in 2025, and that the oil consumption of the three contiguous North American countries of Canada, Mexico, and the United States (in this title referred to as the `three contiguous North American countries') will rise by 47.2 percent from 23.5 Mmbbl/d (8.58 Bbbl/y) in 2001 (30.5 percent of world consumption) to 34.6 Mmbbl/d (12.6 Bbbl/y) in 2025 (28.6 percent of world consumption).
(5) EIA projects that, without a change in governmental policy, oil production in the three contiguous North American countries will rise by 18.8 percent from 15.4 Mmbbl/d (5.6 Bbbl/y) in 2001 (19.4 percent of world production) to 18.3 Mmbbl/d (6.7 Bbbl/y) in 2025 (14.5 percent of world production).
(6 ) EIA projects that, without a change in governmental policy, the three contiguous North American countries contain 492.7 Bbbls of oil resources (16.8 percent of total world oil resources) (not including unconventional oil resources such as United States oil shale or the overwhelming majority of Canadian oil sands) at the base case oil price, which represents sufficient oil to fully supply the needs of the three contiguous North American countries for 57.4 years based on 2001 oil consumption and 39.1 years based on projected 2025 oil consumption, resulting in an average of approximately 48 years of full supply.
(7) In the same report, EIA projects that, without a change in governmental policy, the United States natural gas consumption will rise by 38.9 percent from 22.6 trillion cubic feet per year (Tcf/y) in 2001 to 31.4 Tcf/y in 2025, and that the natural gas consumption of the three contiguous North American countries will rise by 48.0 percent from 26.9 Tcf/y in 2001 (29.3 percent of world consumption) to 39.8 Tcf/y in 2025 (26.3 percent of world consumption).
(8) EIA projects that, without a change in governmental policy, natural gas production in the three contiguous North American countries will rise by 21.7 percent from 27.6 Tcf/y in 2001 (30.3 percent of world production) to 33.6 Tcf/y in 2025 (22.3 percent of world production), not including Alaskan gas through the natural gas pipeline, gas from gas hydrates, nor expanded coal gasification. The United States Geological Survey estimates that natural gas hydrate resources in-place total 169,000 Tcf in Alaska and its surrounding waters, and approximately 150,000 Tcf off the lower-48 Atlantic, Pacific, and Gulf of Mexico coastlines.
(9) The terrorist attacks in the United States on September 11, 2001, and the subsequent expansion of terrorist organizations in regions outside of North America in areas that are major suppliers of oil, and potential suppliers of liquified natural gas, to the United States have significantly increased the national security and homeland security risks to the United States of relying upon oil and natural gas supply sources located outside of the three contiguous North American countries. The United States imports 60 percent of our oil supplies-the highest in history. After Canada and Mexico, the largest oil suppliers to the United States are Saudi Arabia, Venezuela, Nigeria, Iraq, and Algeria all of which suffer from significant instability.
(10) According to published scientific, technical, and economic reports, the three contiguous North American countries have the resource base and technical ability to increase production of oil by at least 15 Mmbbl/d by 2025 and 20 Mmbbl/d by 2030 even before increases in coal liquifaction, biofuels, gas-to-liquids, and other methods of creating liquid substitutes for crude oil and crude oil products.
(11) This increase in North American oil production would be derived from a variety of resources including, among others--
(A) the United States oil shale resource base (2 trillion barrels of oil in place out of 2.6 trillion in the world) believed to be capable of eventually producing 10 Mmbbl/d for more than 100 years;
(B) the Canadian Alberta oil sands resource base (1.7 trillion barrels of oil in place), also believed to be capable of eventually producing 10 Mmbbl/d for more than 100 years;
(C) the United States heavy oil resource base (80 billion barrels of oil in place);
(D) the remaining 400 billion barrels of conventional oil in place in the United States of which 60 billion barrels are potentially producible with advanced CO2 enhanced oil recovery technology;
(E) the United States oil sands resource base of 54 billion barrels of oil in place;
(F) the Arctic National Wildlife Refuge Coastal Plain area (ANWR) with a mean technically recoverable resource of more than 10 billion barrels of oil;
(G) the National Petroleum Reserve-Alaska (NPR-A) with a mean technically recoverable resource of 9.3 billion barrels of oil;
(H) the 12-18 billion barrels of oil likely to be producible in the Canadian Atlantic offshore;
(I) the extensive resources of the Canadian Arctic onshore and offshore;
(J) the extensive resources in the Alaskan Arctic offshore and the outer Continental Shelf offshore the lower-48 United States;
(K) other extensive oil resources in Canada and the United States; and
(L) the extensive oil resources of Mexico.
(12) In addition to being the `Saudi Arabia' of oil shale with at least 75 percent of the world's oil shale resource base, the United States is also the `Saudi Arabia' of coal. The EIA estimates that total economically recoverable reserves of coal around the world are 1,083 billion short tons-enough to last approximately 210 years at current consumption levels. EIA estimates that the economically recoverable coal reserves of the United States, at 25 percent of total world reserves, are the largest in the world. Total United States coal resources are vastly larger than the 270 billion short tons of economically recoverable reserves, and with new technology much more could economically be made available to supply our energy needs. World consumption of coal in 2001 was 5.26 billion short tons and is projected to grow to 7.57 billion short tons in 2025. 70 percent of the increased world consumption is projected to be attributable to China and India. United States consumption of coal in 2001 was 1.06 billion short tons and is projected to grow to 1.57 billion short tons in 2025.
(13) Growth in world oil consumption has been outstripping growth in world production of conventional oil resources for several primary reasons, including that conventional oil production in most oil producing countries has peaked and is now declining, and developing nations such as China and India are greatly accelerating their consumption of crude oil.
(14) The recent increases in world oil prices are caused by the faster growth in demand over supply and this trend is likely to continue because the remaining conventional oil is more difficult and expensive to find and produce, and frequently not reasonably available.
(15) The National Intelligence Council, an advisor to the Central Intelligence Agency, found in its report, `Mapping the Global Future,' NIC 2004-13, December 2004, that `Continued limited access of the international oil companies to major fields could restrain this investment necessary for supply to meet demand, however, and many of the areas--the Caspian Sea, Venezuela, West Africa, and South China Sea--that are being counted on to provide increased output involve substantial political or economic risk. Traditional suppliers in the Middle East are also increasingly unstable. Thus sharper demand-driven competition for resources, perhaps accompanied by a major disruption of oil supplies, is among the key uncertainties. China and India, which lack adequate domestic energy resources, will have to ensure continued access to outside suppliers; thus, the need for energy will be a major factor in shaping their foreign and defense policies, including expanding naval power'.
(16) Because the price of crude oil is set on a world market basis, the excess of world demand over supply will continue to drive up oil prices to levels potentially several times those of today unless all nations capable of producing significant quantities of incremental oil respond by ensuring such production is developed and available for consumption on an expedited basis.
(17) The eventual, long-term solution is to drastically reduce the world's reliance on oil as the primary fuel for transportation (40 percent of the United States consumption of oil is to power light motor vehicles).
(18) North America, while maximizing the production of oil, must use the next 40 years as a transition period to a more sustainable energy model.
(19) The United States also has large renewable energy resource potential including wind, geothermal, solar, biomass, ocean thermal, waves and currents, and hydroelectric. The EIA's July 2004 report, `Renewable Energy Trends 2003', found that renewable energy provided 6 percent of the Nation's energy supply in 2003. The largest renewable energy source was biomass with 47 percent of the renewables total energy output, followed closely by hydroelectric with 45 percent, then geothermal with 5 percent, wind with 2 percent, and solar with 1 percent. Technology is rapidly advancing, positioning renewable energy to provide an increasing share of our energy supply in the residential, commercial, industrial, transportation, and electric power sectors. The United States public lands and waters comprise 2.25 billion acres, large portions of which may be available to rapidly expand this clean and renewable alternative to fossil energy resources. These lands should be reviewed for their potential contribution to our Nation's domestic energy security.
(20) The United States has the strongest environmental safeguards in the world, and our standards, science, and technology have proven that the United States can produce energy in an environmentally benign manner, particularly when compared with the lesser environmental standards in most foreign oil producing countries.
(21) The 1999 Clinton Administration report, `Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology,' highlights the technological achievements of the United States oil and gas industry. The report noted, `public awareness of the significant and impressive environmental benefits from new exploration and production (E&P) technology advances remains limited . . .. We believe it is important to tell this remarkable story of environmental progress in E&P technology. Greater awareness of the industry's achievements in environmental protection will provide the context for effective policy, and for informed decision making by both the private and public sectors.'.
(22) Many Americans believe the myth that spills from oil and natural gas exploration and production are the leading cause of oil pollution in the oceans and the Nation's rivers and streams. The reality is that, to the contrary, in 2002 the National Academy of Sciences found that offshore oil and natural gas exploration and production account for a total of only 2 percent of the oil in the North American marine environment; natural sources such as oil seeps account for 63 percent of such oil; industrial and municipal discharges, including urban runoff, account for 22 percent of such oil; atmospheric pollution accounts for 8 percent of such oil; marine transportation accounts for 3 percent of such oil; and recreational vessels account for 2 percent of such oil.
(23) Various national security organizations and experts have warned the United States of the escalating risks to our national security of relying on transoceanic oil imports from unstable regions of the world for a significant part of our oil supplies, and they have urged the Nation to reduce its dependence on oil.
(24) Polls consistently have found that a majority of individuals in the United States strongly support reducing our reliance on foreign energy sources.
(25) A recent report on `Energy and National Security' issued by Sandia National Laboratories, SAND2003-3287, September 2003, found that our national security is threatened by our continued reliance on vast quantities of oil from unstable foreign sources. The report found that supply disruptions, caused by terrorists or otherwise, could immediately remove many millions of barrels of oil per day from the world supply, and noted that the EIA has estimated that for every one million bbl/d of oil supply disrupted, world oil prices might increase $3-$5 per barrel. Sandia found six solution options, including--
(A) maintenance of strategic reserves;
(B) support of foreign government regimes likely to maintain production;
(C) military deterrence, protection, or intervention to secure production sources and facilities;
(D) diversification of production sources;
(E) reduction of oil intensity through conservation or through more efficient energy use; and
(F) development and deployment of alternatives to oil (or gas).
Sandia noted `that none of these measures seems likely to emerge from business-as-usual market processes. Thus implementation of these measures will usually require public policy decisions. In the case of the first three, they would be foreign and military policy decisions; in the case of the latter three, they would be legal, regulatory, or governmental subsidy decisions.' Sandia mentioned oil shale and tar sands as potential diversified sources of oil supplies, and hydrogen, coal, renewables, nuclear fission, and methane hydrates as alternatives to oil.
(26) President Clinton concluded, on February 16, 1995, under section 232 of the Trade Expansion Act of 1962, that `. . . the nation's growing reliance on imports of crude oil and refined petroleum products threaten the nation's security because they increase U.S. vulnerability to oil supply interruptions.'. In 1994 crude oil imports were 7.051 million barrels per day. On March 24, 2000, President Clinton, upon further review under section 232, found, `I have reviewed and approved the findings of your investigative report . . . that imports of crude oil threaten to impair the national security.'. Between the two statements by President Clinton, United States crude oil imports increased 21.6 percent to 8.581 million barrels per day in 1999.
(27) Economists have found that while OPEC is an important source of oil price increases, the United States government is also partly to blame because overly burdensome government regulations on domestic energy exploration, production, and sales have supported OPEC's monopoly power and restricted competition from American energy companies, in addition to making expansive highly prospective areas off-limits to leasing and production.
(28) In addition to jeopardizing our national and energy security, importing the majority of our oil also injures our economic security. The United States imported approximately 4.7 billion barrels of oil in 2004, of which 1.4 billion barrels were from Canada and Mexico. Imported energy creates very few jobs in the United States and makes only a very minor contribution to our Gross Domestic Product (GDP). If we substitute North American production for the remaining 3.3 billion barrels of imports per year, at $40 per barrel the new production would sell for $132 billion. A widely used commercial economics model projects that GDP would increase by $336 billion, creating 1,667,160 jobs, each with an average total annual compensation of $50,356. Further, such activity is projected to generate approximately $22 billion in indirect business taxes, including sales, excise, and severance taxes. At a one-eighth royalty, total royalty payments to mineral rights owners would approximate $16.5 billion per year. Further, our imported energy represents more than 25 percent of our international trade deficit. American production could eliminate two-thirds of the 25 percent, strengthening our economy.
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