Omnibus Energy Legislation, 109th Congress: Side-by-Side Assessment of House and Senate Versions of H.R. 6

CRS Report for Congress
th
Omnibus Energy Legislation, 109 Congress:
Side-by-Side Assessment of House and Senate
Versions of H.R. 6
July 25, 2005
Mark Holt and Carol Glover
Coordinators
Resources, Science, and Industry Division


Congressional Research Service ˜ The Library of Congress

Omnibus Energy Legislation, 109th Congress:
Side-by-Side Assessment of House and Senate
Versions of H.R. 6
Summary
The House approved an omnibus energy bill (H.R. 6) on April 21, 2005, that
would open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing,
substantially change oversight of electric utilities, increase the use of alternative
motor fuels, provide $8.1 billion in energy tax incentives, and authorize numerous
energy R&D programs. The Senate passed its version of H.R. 6 on June 28 without
ANWR provisions but with $14.1 billion in tax incentives — including a nuclear
energy production credit — and provisions on global climate change. Highlights of
the bills include:
Electricity. Both the House and the Senate versions of the bill would repeal the
Public Utility Holding Company Act (PUHCA), but the Senate bill has provisions
for more stringent oversight of utility mergers than the House version. Standard
market design (SMD) would be remanded to the Federal Energy Regulatory
Commission (FERC) by the House bill, while the Senate version would terminate the
rulemaking altogether.
Renewable Energy. An increase in renewable fuel and ethanol consumption to
5 billion gallons annually by 2012 would be mandated by the House bill, as opposed
to 8 billion gallons in the Senate bill. The Senate bill includes a “renewable portfolio
standard” (RPS) — rejected in the House — requiring utilities to generate at least

10% of their electricity from renewable energy sources by 2020.


MTBE. Methyl tertiary butyl ether (MTBE), a gasoline additive widely used to
meet Clean Air Act requirements, has caused water contamination. The House and
Senate bills would phase out the use of MTBE with some possible exceptions and
provide funds for MTBE cleanup, with some differences. The House version would
provide protection for fuel producers and blenders of renewable fuels and MTBE
from defective product lawsuits, while the Senate bill would cover renewable fuels
but not MTBE.
Energy Taxes. The House bill would reduce energy taxes by about $8.1 billion
over 11 years, as compared with $14.1 billion in the Senate version. A nuclear
energy production tax credit is included among the Senate incentives.
ANWR. The House-passed bill would authorize oil and gas exploration,
development, and production in ANWR, with a 2,000-acre limit on production and
support facilities. No ANWR provisions are included in the Senate version.
Energy Production on Federal Lands. Both bills include numerous provisions
to increase energy production on federal lands. The Senate version of H.R. 6 would
require an inventory of oil and natural gas resources on the Outer Continental Shelf
(OCS), while the House version would not.
This report will not be updated.



Contents
In troduction ......................................................1
Major Provisions..............................................2
Electricity Regulation......................................2
Renewable Fuel Standard and MTBE..........................3
Energy Taxes.............................................4
Nuclear Energy............................................4
Renewable Portfolio Standard and Energy Efficiency..............5
Arctic National Wildlife Refuge..............................6
Domestic Energy Production.................................7
Hydrogen and Fuel Cells....................................7
Overview of House and Senate Versions............................7
Organization of Report.........................................9
Energy Efficiency.................................................10
Federal Programs.............................................10
Energy Assistance and State Programs............................13
Energy-Efficient Products......................................16
Public Housing...............................................20
Renewable Energy................................................22
General Provisions............................................22
Hydroelectric ................................................28
Oil and Gas.....................................................31
Petroleum Reserve and Home Heating Oil.........................31
Production Incentives..........................................33
Access to Federal Land........................................38
Refining Revitalization........................................39
Coal ...........................................................43
Clean Coal Power Initiative.....................................43
Clean Power Projects..........................................44
Coal and Related Programs.....................................45
Indian Energy....................................................46
Nuclear Matters..................................................48
Price-Anderson Act Amendments................................48
General Nuclear Matters.......................................50
Advanced Reactor Project......................................56
Nuclear Security..............................................57
Vehicles and Fuels................................................60
Existing Programs............................................60
Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses............63
Clean School Buses...........................................65
Miscellaneous ...............................................67
Automobile Efficiency.........................................70
Hydrogen .......................................................72
Research and Development.........................................75
Science Programs.............................................76
Research Administration and Operations..........................82
Energy Efficiency — Vehicles, Buildings, and Industries..............88
Energy Efficiency — Distributed Energy and Electric Energy Systems...92
Renewable Energy............................................95



Fossil Energy — Research Programs.............................105
Fossil Energy — Ultra-Deepwater and Unconventional Natural Gas
and Other Petroleum Resources.............................109
Department of Energy Management.................................111
Electricity ......................................................113
Reliability Standards.........................................113
Transmission Infrastructure Modernization........................114
Transmission Operation Improvements...........................119
Transmission Rate Reform....................................123
Amendments to PURPA......................................124
Repeal of PUHCA...........................................127
Market Transparency, Enforcement, and Consumer Protection ........132
Merger Reform..............................................138
Definitions .................................................140
Economic Dispatch and Other Electricity.........................140
Energy Tax Incentives............................................143
Energy Infrastructure Tax Incentives.............................143
Conservation and Energy Efficiency Provisions....................148
Alternative Minimum Tax Relief................................157
Other Fossil Fuels Incentives — Oil and Gas......................158
Other Fossil Fuels Incentives — Coal............................161
Renewable Energy Supply.....................................162
General Tax Incentives.......................................163
Tax Increases...............................................164
Non-Tax Provisions..........................................167
Miscellaneous ..................................................168
Other Provisions.............................................168
Ethanol and Motor Fuels..........................................173
General Provisions...........................................173
Underground Storage Tank Compliance..........................182
Boutique Fuels..............................................185
Studies ........................................................185
Renewable Energy — Resources....................................193
Geothermal Energy..............................................194
Hydropower — Resources.........................................199
Oil and Gas — Resources.........................................200
Production Incentives.........................................200
Access to Federal Lands.......................................207
Naval Petroleum Reserves.....................................211
Miscellaneous Provisions......................................212
Coal — Resources...............................................214
Energy Development in Arctic Refuge...............................216
Set America Free (SAFE).........................................227
Grand Canyon Hydrogen-Powered Transportation Demonstration..........228
Additional Provisions............................................228
Studies ........................................................229
Incentives for Innovative Technologies...............................232
Climate Change.................................................236
National Climate Change Technology Deployment.................236
Climate Change Technology Deployment in Developing Countries.....238
Index of Senate Sections..........................................240



Appendix B: Oil and Gas Exploration and Production Defined
(Sec. 328, House Bill)........................................245
Appendix C: Clean Air Coal Program (Sec. 441 House, Sec. 956 Senate)....246
Appendix D: Price-Anderson Nuclear Liability Coverage (Secs. 601-612) ...247
Appendix E: Electric Reliability Standards (Sec. 1211)..................248
Appendix F: Standard Market Design (House Sec. 1235, Senate Sec. 1234)..250
Appendix G: Cogeneration and Small Power Production Purchase
and Sale Requirements (Sec. 1253)..............................252
Appendix H: Repeal of the Public Utility Holding Company Act of 1935
(House Sec. 1263, Senate Sec. 1273) ............................253
Appendix I: Continuation of Transmission Security Order (Sec. 1441)......255
Appendix J: Deadline for Decision on Appeals under the Coastal Zone
Management Act (Sec. 2013)...................................256
Appendix K: Domestic Offshore Energy Reinvestment (Sec. 2053)........257



Omnibus Energy Legislation,
109th Congress: Side-by-Side Assessment
of House and Senate Versions of H.R. 6
Introduction
Since the Arab oil embargo in 1973-1974, Congress has periodically taken up
energy policy legislation with a comprehensive scope — often spurred by the price
of oil and U.S. dependence upon imported oil. The price of crude oil began to rise
in 2003 — exceeding $60/barrel (bbl) in early July 2005 — setting much of the
context for renewed debate over omnibus energy legislation in the 109th Congress.
National and world demand for oil continues to grow. However, domestic oil
production in the United States continues to decline. As a consequence, the gap
between U.S. production and consumption has had to be covered by increased oil
imports. These imports, roughly 6 million barrels per day (mbd) after the Arab oil
embargo, now exceed 10 mbd to satisfy total U.S. oil consumption of nearly 21 mbd.1
Addressing dependence on imported oil raises a number of issues touching on
both demand and consumption of fossil fuels. Chief among these are the production
of additional fossil fuels, development of alternative energy sources, and
conservation and energy efficiency. Energy infrastructure has also been a growing
issue, including the oil refining and distribution sector, and electricity transmission,
reliability, and regulation. Increased use of domestic coal and reassessment of many
issues associated with nuclear energy have drawn attention as well.
Developing a comprehensive approach to energy policy that balances economic,
security, and environmental issues — as well as competing regional priorities in the
United States — is an enormous challenge for policymakers. Keeping a clear eye on
distinguishing between short- and long-term policies is also difficult but important
in keeping expectations realistic for what comprehensive legislation can achieve.
In the 109th Congress, the House approved an omnibus energy bill (H.R. 6) on
April 21, 2005, that would open the Arctic National Wildlife Refuge (ANWR) to oil
and gas leasing, substantially change oversight of electric utilities, increase the use
of alternative motor fuels, provide $8.1 billion in energy tax incentives, extend the
nuclear accident liability system, and authorize numerous energy R&D programs.
The Senate passed its version of H.R. 6 on June 28 without ANWR provisions but
including $14.1 billion in tax incentives and provisions on global climate change.


1 U.S. Department of Energy, Energy Information Administration, at [http://www.eia.doe.
gov/ pub/oil_gas/petroleum/ data_publications/weekly_petroleum_s t a t u s _ r e p o r t / c u r r e n t /pdf/
tableh1.pdf].

The two versions of the bill contain many provisions from the conference report on
an omnibus energy bill (also numbered H.R. 6) in the 108th Congress that was
blocked by a Senate filibuster.
The House- and Senate-passed bills in the 109th Congress would mandate
increasing levels of ethanol production through 2012 but allow regions to opt out
under certain conditions. Use of methyl tertiary butyl ether (MTBE) as a domestic
gasoline additive would be phased out, but states could authorize continued use and
under the House bill the President could void the ban. Producers of MTBE and
renewable fuels would be granted protection (a “safe harbor”) from product liability
lawsuits under the House bill, while only renewable fuels would be covered in the
Senate bill. MTBE liability protection proved highly contentious in the Senate in the

108th Congress.


The Senate bill includes a “renewable portfolio standard” (RPS) — rejected by
the House Energy and Commerce Committee — requiring utilities to generate at least
10% of their electricity from renewable energy sources by 2020. Also, the Senate bill
would establish a credit-based deployment program to encourage technologies to
reduce greenhouse gas intensity and establish programs to deploy technologies in
developing countries. Neither of those provisions is in the House bill.
Provisions are also included in both bills to increase access by energy
developers to federal lands. Several new statutory efficiency standards would be
established for consumer and commercial products and appliances, and other
standards would be set by the Department of Energy (DOE).
Major Provisions
Electricity Regulation. Title XII in the House- and Senate-passed bills
would create an electric reliability organization (ERO) that would enforce mandatory
reliability standards for the bulk-power system. All ERO standards would be
approved by the Federal Energy Regulatory Commission (FERC). Under this title,
the ERO could impose penalties on a user, owner, or operator of the bulk-power
system that violates any FERC-approved reliability standard. This title also
addresses transmission infrastructure issues. The Secretary of Energy would be able
to certify congestion on the transmission lines and issue permits to transmission
owners. Permit holders would be able to petition in U.S. District Court to acquire
rights-of-way for the construction of transmission lines through the exercise of the
right of eminent domain. In the Senate bill, FERC could approve participant funding
for transmission line construction. A provision that would have required FERC to
approve participant funding for new transmission lines was removed in markup by
the House Committee on Energy and Commerce.
Under the House bill, FERC’s Standard Market Design notice of proposed
rulemaking would be remanded. The Senate bill would terminate FERC’s Standard
Market Design notice of proposed rulemaking. Under both Senate- and House-
passed bills, native load service obligations would be clarified, and federal utilities
would be allowed to participate in regional transmission organizations.



Under both bills, the electricity title would repeal the mandatory purchase
requirements under the Public Utility Regulatory Policies Act (PURPA). The Public
Utility Holding Company Act of 1935 (PUHCA) would be repealed. The Federal
Energy Regulatory Commission and state regulatory bodies would be given access
to utility books and records.
FERC would be required to issue rules to establish an electronic system that
provides information about the availability and price of wholesale electric energy and
transmission services under the House version, and could issue such rules under the
Senate version. Under both versions, for electric rates that the Federal Energy
Regulatory Commission finds to be unjust, unreasonable, or unduly discriminatory,
the effective date for refunds would begin at the time of the filing of a complaint with
FERC but not later than five months after filing of a complaint. Criminal and civil
penalties would be increased. Under the House version, the Federal Power Act
would be amended to give FERC review authority for transfer of assets valued in
excess of $10 million. The Senate version would also apply to the purchase, lease,
or acquisition of an existing generating facility that has a value in excess of $10
million and is used to generate electricity for FERC jurisdictional interstate wholesale
sales. In addition to the House requirements, the Senate version would require FERC
to determine that the proposed transaction would not result in harmful cross-
subsidization with a non-utility associate company.
(For additional discussion on these issues, see CRS Report RL32728, Electric
Utility Regulatory Reform: Issues for the 109th Congress; and CRS Report RL32133,
Federal Merger Review Authority.)
Renewable Fuel Standard and MTBE. The House and Senate versions of
H.R. 6 would amend the Clean Air Act to eliminate the requirement that
reformulated gasoline (RFG) contain 2% oxygen to reduce automotive emissions, a
requirement which prompted the widespread use of MTBE and, to a lesser degree,
ethanol. Instead, the bills would establish a new requirement that an increasing
amount of gasoline contain renewable fuels such as ethanol. The House bill would
require that 3.1 billion gallons of renewable fuel be used in 2005, increasing to 5.0
billion gallons by 2012, and the Senate bill would require 8.0 billion gallons by 2012
(compared with 3.4 billion gallons used in 2004). However, concerns have been
raised that this requirement could significantly increase the pump price for gasoline
in some areas.
Because of concerns over drinking water contamination by MTBE (a major
competitor with ethanol), both bills would ban the use of MTBE in motor vehicle
fuel, except in states that specifically authorize its use, not later than December 31,

2014, under the House version and four years after enactment in the Senate version.


The ban has two possible exceptions. First, the Environmental Protection Agency
(EPA) may allow MTBE in motor fuel up to 0.5 percent by volume, in cases that the
Administrator determines to be appropriate; and second, under the House version, the
President may make a determination, not later than June 30, 2014, that the
restrictions on the use of MTBE shall not take place. The House bill would
authorize $2.0 billion and the Senate bill $1.0 billion to assist the conversion of
merchant MTBE production facilities to the production of other fuel additives.
Further, the bills would preserve the reductions in emissions of toxic substances



achieved by the RFG program (although they use different baselines for determining
required reductions).
One of the most controversial provisions in the House version of H.R. 6 is the
establishment of a “safe harbor” from product liability lawsuits for producers of
MTBE and renewable fuels (such as ethanol). The safe harbor provision would
protect anyone in the product chain, from manufacturers down to retailers, from
liability for cleanup of MTBE and renewable fuels or for personal injury or property
damage based on the product being deemed defective. (That legal approach has been
used in California to require refiners to shoulder liability for MTBE cleanup.) The
safe harbor would be retroactive to September 5, 2003. Prior to that date, five
lawsuits had been filed. After that date, at least 150 suits were filed, on behalf of 210
communities in 15 different states. The Senate bill includes the safe harbor provision
for renewable fuels but not MTBE; the Senate safe harbor would not be retroactive.
(For additional information, see CRS Report RL32865, Renewable Fuels and
MTBE: A Comparison of Selected Legislative Initiatives; CRS Report RL30369, Fuel
Ethanol: Background and Public Policy Issues; and CRS Report RL32787, MTBE
in Gasoline: Clean Air and Drinking Water Issues.)
Energy Taxes. After the conference report on H.R. 6 in the 108th Congress
was blocked in the Senate, several of the measure’s energy tax provisions —
estimated at $1.3 billion over 10 years — were included in the Working Families Tax
Relief Act of 2004 (P.L. 108-311), enacted on October 4, 2004. About $5 billion in
additional energy tax incentives over 10 years were part of the American Jobs
Creation Act of 2004 (P.L. 108-357) enacted on October 22, 2004.
Many of the energy tax incentives in H.R. 6 from the 108th Congress that wereth
not enacted in 2004 have been repackaged into the H.R. 6 in the 109 Congress, with
significant differences between the House and Senate versions. First, the Senate bill
would provide net tax reductions of $14.1 billion over 11 years compared with $8.1
billion in the House-passed version. Second, most of this difference is accounted for
by tax cuts for the electricity industry, energy efficiency, and renewable and
alternative fuels. The Senate bill provides absolutely and relatively more tax cuts for
energy efficiency and alternative fuels. The differences in tax cuts for alternative
fuels are particularly striking: $12 billion in the Senate bill vs. $0.6 billion in the
House bill. The Senate bill also provides more tax incentives for energy efficiency
investments than the House bill. The House bill provides much larger tax cuts for the
electricity industry, particularly for electricity infrastructure.
Thus, in a relative sense, the House bill is tilted more toward fossil fuel
production, while the Senate bill’s tax cuts are tilted more to the production of
alternative and renewable fuels and energy conservation. However, the absolute
dollar tax cuts for oil, gas, and coal are also somewhat larger in the Senate bill than
in the House bill ($5.8 billion vs. $4.7 billion).
(For more background, see CRS Issue Brief IB10054, Energy Tax Policy.)
Nuclear Energy. Strong incentives for building new commercial nuclear
power plants are included in the Senate version of H.R. 6, and both the House and



Senate bills would reauthorize the Price-Anderson Act nuclear liability system for 20
years and authorize DOE to build an advanced reactor in Idaho.
The strongest nuclear incentive is the Senate bill’s 1.8-cents/kilowatt-hour tax
credit for electricity produced by nuclear reactors. The credit would be available for
up to 6,000 megawatts of new capacity — the equivalent of about five or six new
reactors — for the first eight years of operation. The nuclear production tax credit
was also included in the energy bill conference report in the 108th Congress, and the
Energy Information Administration concluded then that the credit would provide
sufficient incentives for new commercial reactors to be built.2 The Senate bill would
also authorize loan guarantees for new reactors. Neither of those incentives is
included in the House version.
Reauthorization of the Price-Anderson Act is generally considered to be a
prerequisite for new reactors. Under Price-Anderson, commercial reactor accident
damages are paid through a combination of private-sector insurance and a nuclear
industry self-insurance system. Liability is capped at the maximum coverage
available under the system, currently about $10.7 billion. Even without
reauthorization, existing reactors continue to be covered, but any new ones would
not. Price-Anderson also authorizes the Department of Energy to indemnify its
nuclear contractors. The limit on DOE contractor liability is the same as for
commercial reactors, except when the limit for commercial reactors drops because
of a decline in the number of covered reactors.
Both versions of H.R. 6 would provide a 20-year extension of Price-Anderson
to the end of 2025. The nuclear industry contends that the system has worked well
and should be continued, but opponents charge that Price-Anderson’s liability limits
provide an unwarranted subsidy to nuclear power. The House version of the bill
would also require the Nuclear Regulatory Commission (NRC) to assess nuclear
power plant security and require additional security measures.
(For more information, see CRS Issue Brief IB88090, Nuclear Energy Policy.)
Renewable Portfolio Standard and Energy Efficiency. The Senate
version of H.R. 6 would require retail electricity suppliers (electric utilities, except
for those in Hawaii and that sold less than 4 billion kwh) to obtain a minimum
percentage of their power from a portfolio of new renewable energy resources. The
minimum renewable energy target, or Renewable Portfolio Standard (RPS), would
start at 2.5% in 2008, rise in steps of 2.5% every four years, and level off at 10%
from 2020 to 2030. The House version of H.R. 6 does not have an RPS provision.
Eligible resources for the RPS in the Senate bill would include “new renewable
energy” produced from solar, wind, ocean, and geothermal energy, most forms of
biomass, landfill gas, and incremental hydropower. Also, additional energy above
the average generation in the three preceding years from “existing” (already placed
in service) facilities using solar, wind, ocean, biomass, landfill gas, incremental


2 U.S. Department of Energy, Energy Information Administration, Analysis of Five Selected
Tax Provision of the Conference Energy Bill of 2003, SR/OIAF/2004-01, February 2004.

hydropower, or incremental geothermal energy would be eligible to satisfy the RPS
target. The base for calculating the target production level would exclude power
from existing hydropower and municipal solid waste generation. Thus, states with
a large amount of existing hydropower or municipal solid waste generation would
have a proportionately lower target for new generation. However, there may be a
debate in conference about whether existing nuclear and hydro generation, or some
portion of it, would be eligible to satisfy the RPS target.
Tradable credits would be created, which could be purchased in place of
alternative power sources. The credits would function like those in the Clean Air Act
emission allowance trading system, which has lowered compliance costs for air
pollution regulations. Electricity suppliers could “carry forward” surplus credits for
up to three years. Double credits would be provided for facilities on Indian land and
triple credits would go to distributed generators under 1 megawatt in size. A cost cap
for the credits is set as the lesser of 1.5 cents/kilowatt-hour (kwh) or 200% of the
average market value of the credits. DOE collections from credit sales and penalties
would fund grants to states to promote renewables.
Both versions of H.R. 6 would legislate new energy efficiency standards for
several consumer and commercial products and appliances. For certain other products
and appliances, DOE would be empowered to set new standards. Also, the bill would
provide increased funding authorizations for the DOE weatherization program and
establish a voluntary program to promote energy efficiency in industry.
(For additional information, see CRS Issue Brief IB10020, Energy Efficiency:
Budget, Oil Conservation and Electricity Conservation Issues, and CRS Issue Brief
IB10041, Renewable Energy: Tax Credit, Budget, and Electricity Production Issues.)
Arctic National Wildlife Refuge. The congressional debate over whether
to open ANWR to development has continued for more than 40 years. H.R. 6 as
passed by the House would authorize oil and gas exploration, development, and
production in a portion of ANWR, with a 2,000-acre limit on certain production and
support facilities. The Senate version contains no ANWR provisions.
Development advocates argue that ANWR oil would reduce U.S. energy
markets’ exposure to crises in the Middle East; boost North Slope oil production;
lower oil prices; extend the economic life of the Trans Alaska Pipeline System; and
create many jobs in Alaska and elsewhere in the United States. They maintain that
ANWR oil could be developed with minimal environmental harm, and that the
footprint of development could be limited to a total of 2,000 acres.
Opponents of development in ANWR argue that intrusion on this ecosystem
cannot be justified on any terms; that economically recoverable oil found (if any)
would provide little energy security and could be replaced by cost-effective
alternatives, including conservation; and that job claims are overstated. They also
maintain that the footprint of oil development, despite a provision in the measure to
limit certain facilities to 2,000 acres, would still be scattered in many parcels across
the landscape, and would have a greater impact than is implied by any limit on total
acreage. They also argue that past proposals to limit any footprint have not been



worded so as to apply clearly to the extensive Native lands in the Refuge, which
could be developed if the Arctic Refuge were opened.
(For additional information, see CRS Issue Brief IB10136, The Arctic National
Wildlife Refuge: Controversies for the 109th Congress; and CRS Report RL31115,
Legal Issues Related to Proposed Drilling for Oil and Gas in the Arctic National
Wildlife Refuge and CRS Report RS22143, Oil and Gas Leasing in the Arctic
National Wildlife Refuge (ANWR): the 2,000-Acre Limit.)
Domestic Energy Production. The Department of the Interior (DOI) has
estimated that roughly a quarter of oil resources and less than one-fifth of gas
resources on Indian lands have been developed. Both versions of H.R. 6 would
encourage production on federal lands through royalty reductions for marginal oil and
gas wells on public lands and the outer continental shelf. Provisions are also
included to increase access to federal lands by energy projects — such as drilling
activities, electric transmission lines, and gas pipelines. In addition, the House bill
would prohibit EPA from regulating hydraulic fracturing to protect drinking water
sources.
(For additional information, see CRS Reports RL32873, Environment and
Energy: Selected Issues in H.R. 6, 109th Congress, and RL32262, Selected Legal and
Policy Issues Related to Coalbed Methane Development.)
Hydrogen and Fuel Cells. The House version of H.R. 6 would authorize $4
billion for FY2006-2010 for hydrogen and fuel cell R&D; the Senate version would
authorize $3.3 billion over the same time frame. The bill would also establish a goal
of producing commercial fuel cell vehicles and developing hydrogen infrastructure
by 2020. Critics of the Administration suggest that the hydrogen program is intended
to forestall any attempts to significantly raise vehicle Corporate Average Fuel
Economy (CAFE) standards, and that it relieves the automotive industry of assuming
more initiative in pursuing technological innovations. On the other hand, some
contend that it is appropriate for government to become involved in the development
of technologies that could address national environmental and energy goals but are
too risky to draw private-sector investment.
(For additional information, see CRS Report RS21442, Hydrogen and Fuel Cell
R&D: FreedomCAR and the President’s Hydrogen Fuel Initiative; and CRS Report
RL32196, A Hydrogen Economy and Fuel Cells: An Overview.)
Overview of House and Senate Versions
The House and Senate versions of H.R. 6 generally address similar areas of
energy policy, although there are major differences. For example, only the House bill
would open ANWR to oil and gas activities, and only the Senate version includes
extensive provisions explicitly addressing global climate change. Table 1 provides
a brief comparison.



Table 1. Major Provisions of
House and Senate Energy Bills
P r ovision House Senate
Electricity restructuringChanges regulatoryChanges regulatory
requirements to emphasizerequirements to emphasize
competitive marketcompetitive market
formation.formation. Additional
FERC oversight of
mergers and acquisitions
required.
Arctic National WildlifeOpens ANWR to oil andNo provision.
Refuge (ANWR)gas leasing.
MTBE and renewableProtects MTBE andProtects ethanol producers
fuels liability protectionethanol producers fromfrom liability lawsuits.
(“safe harbor”)product liability lawsuits.
Global climate changeNo specific provisions.Establishes a credit-based
deployment program to
encourage technologies to
reduce greenhouse gas
intensity and establishes
programs to deploy
technologies in
developing countries.
Equipment and applianceLegislates new standardsLegislates new standards
efficiency standardsfor 7 products, calls forfor 15 products, calls for
DOE standards byDOE standards by
rulemaking for 3 products.rulemaking for 4 products.
Nuclear energyExtends Price-AndersonProvides tax credits and
coverage for newloan guarantees for new
commercial reactors andnuclear power plants.
DOE contracts. IncludesExtends Price-Anderson
nuclear security provisions.coverage for new
commercial reactors and
DOE contracts.
Renewable energy contentRequires motor vehicleRequires motor vehicle
in motor vehicle fuelfuel sold in the Unitedfuel sold in the United
States to contain 5 billionStates to contain 8 billion
gallons of ethanol or othergallons of ethanol or other
renewable fuel by 2012.renewable fuel by 2012.
Renewable PortfolioNo provision.Requires electric utilities
Standardto provide minimum
percentages of power
from new renewable
sources.



Organization of Report
The remainder of this report provides a section-by-section summary comparison
of the provisions of H.R. 6 as passed by the House and Senate. The sections are
listed in numerical order as they appear in the House-passed version. Some of the
most controversial sections are discussed in greater detail in a number of appendicies.
Funding authorizations are shown in Tables 2 and 3 at the end of the report.
The following analysts in the CRS Resources, Science, and Industry Division
contributed to this report:
!Amy Abel, electric utilities;
!Anthony Andrews, nuclear security, DOE management;
!Robert Bamberger, energy security;
!Carl Behrens, nuclear nonproliferation;
!Claudia Copeland, Federal Water Pollution Control Act;
!Lynne Corn, ANWR;
!Bernard Gelb, gasoline industry;
!Carol Glover, Native American energy, general authorizations;
!Mark Holt, nuclear energy;
!Marc Humphries, federal energy leasing, coal;
!Larry Kumins, oil and gas;
!Salvatore Lazzari, taxes;
!Jim McCarthy, Clean Air Act, MTBE;
!Dan Morgan, science programs;
!Kyna Powers, hydropower;
!Fred Sissine, conservation and renewable energy;
!Mary Tiemann, underground storage tanks, drinking water;
!Brent Yacobucci, motor fuels, vehicles, hydrogen;
!Jeff Zinn, Coastal Zone Management Act.



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efficiency plan for congressional
://wikib uild ings.
httpergy ManagementSec. 102. The baseline for federal energySec. 102. The baseline for federal energySection 202 of Executive Order 13123 uses
quirements savings would be updated from FY1985savings would be updated from FY1985FY1985 as the baseline for measuring federal
to FY2003 and a new goal of 20%to FY2004 and a new goal of 20%building energy efficiency improvements and calls
reduction would be set for FY2015. Atreduction would be set for FY2015. Byfor a 35% reduction in energy use per gross square
that time, DOE would be directed tothe end of 2013, DOE would be directedfoot by FY2010.


assess progress and set a new goal forto assess progress and set a new goal for
FY2025. Most of the other provisionsFY2015 through FY2024. Standards for
for federal agencies in this Subtitle areexclusion are set, which empower DOE
administrative measures that would helpto exempt, under certain conditions,
agencies achieve the above-describedbuildings for which serve a national
goal.security function or for which achieving
the target would be impracticable.
Further, agencies are allowed to retain
appropriations for energy expenses that

CRS-11
sion House Senate Comments
are saved by the energy efficiency
measur es.
ergy Use Measurement andSec. 103. Federal buildings would beSec. 103. Federal buildings would be
untability required to be metered or sub-metered byrequired to be metered or sub-metered by
late 2010, to help reduce energy costslate 2012, to help reduce energy costs
and promote energy savings.and promote energy savings. Further, the
Secretary of Energy is required to
prepare guidelines for agency energy
managers to facilitate implementation of
me t e r i ng.
iki/CRS-RL33006ocurement of Energy-Sec. 104. Federal agencies would beSec. 104. Same provision.Currently, Section 403 of Executive Order 13123
g/wficient Products required to purchase products certified asenergy-efficient under the Energy Stardirects federal agencies to purchase life-cyclecost-effective Energy Star products.
s.orprogram or energy-efficient products
leakdesignated by the Federal Energy
://wikiManagement Program (FEMP) provided the products are found to be
httpcost-effective” and “reasonably-
available.”
ergy Savings PerformanceSec. 105. Would amend the NationalSec. 105. Would extend authority to enter
ntractsEnergy Conservation Policy Act (42into energy savings performance
U.S.C. 8287) by limiting all federalcontracts from 2006 to 2016, and would
agencies combined to a total of 100consider any energy savings performance
energy savings performance contractscontract entered into under this section
and payments of no more than a total ofafter October 1, 2003, and before the date
$500,000,000. Under such contracts,of enactment of this Act, as extended by
energy saving measures are installed atthis amendment.


government facilities by private-sector
firms in return for a share of the resulting
energy cost reductions. The Sunset and

CRS-12
sion House Senate Comments
Reporting Provisions of section 801(c) of
the Act would be repealed October 1,
2006, and any new contract after that
date would be included in the contract
limits.
luntary Commitments toSec. 107. DOE would be authorized toSec. 106. DOE would be authorized toWhile there is no current statutory authority,
duce Industrial Energyform voluntary agreements with industryform voluntary agreements with industryindustry energy efficiency programs have been in
tensity sectors or companies to reduce energysectors or companies to reduce energyplace, such as the former Climate Wise program at
use per unit of production by anuse per unit of production by 2.5%the Environmental Protection Agency (EPA).
unspecified amount. annually from 2007 through 2016.
Participants would be eligible for
iki/CRS-RL33006technical assistance and grants. An
g/wevaluation of energy-savings impacts
s.orwould be required by mid-2012.
leakvanced Building EfficiencySec. 108. DOE would be required toNo similar provision.
://wikistbed create a program to develop, test, anddemonstrate advanced federal and private
httpbuilding efficiency technologies.
eral Building PerformanceSec. 109. DOE would be directed to setSec. 107. Same provision. FederalMandatory energy efficiency performance
ards revised energy efficiency standards foragency budget requests would bestandards for federal buildings are currently set in
new federal buildings at a level 30%required to include an inventory of newSection 305(a) of P.L. 94-385 and implemented
stricter than industry or internationalbuildings and to indicate whether theythrough 10 CFR Part 435.
standards — provided the standardsmeet the standards.
would be “life-cycle cost-effective.”
creased Use of RecoveredNo similar provision.Sec. 108. DOT and other agencies that
eral Component in Federalregularly procure or provide federal
ment and Concrete Projects funds to procure material for cement or
concrete projects would be directed to
fully implement all procurement



CRS-13
sion House Senate Comments
requirements and incentives that provide
for incorporating recovered mineral
components, such as blast furnace slag
and coal combustion fly ash.
ylight Savings Sec. 111. Daylight saving time wouldNo similar provision.Under current law (Uniform Time Act, P.L. 89-
begin one month earlier (in March) and387, §3a), states can choose whether to
end one month later (in November). Thisparticipate. However, if a state chooses to
is expected to reduce energy used forparticipate, the duration of daylight savings is set
night-time electric lighting.by federal law.
ncing Energy Efficiency inSec. 112. National parks, forests, andNo similar provision.
iki/CRS-RL33006anagement of Federal Lands wildlife refuges would be required to
g/wemploy energy efficiency measures inbuildings and energy-efficient vehicles
s.or(including biodiesel and hybrid engines)
leakto the extent practicable.”
://wiki
http
Assistance and State Programs
sion House Senate Comments
w Income Home EnergySec. 121. Increased funding would beNo similar provision.


nce Program (LIHEAP) authorized for the LIHEAP grant
program for FY2005 through FY2007.
Department of Health and Human
Services funding for LIHEAP was
authorized through FY2003 in the
Human Services Authorization Act of
1998. Also, states and their designees
would be allowed to use renewable fuels

CRS-14
sion House Senate Comments
(including biomass) to carry out the
purposes of this section.
eatherization Assistance Sec. 122. Increased funding would beSec. 121. Same provision.Funding for the program was authorized through
authorized for the DOE weatherizationFY2003 under 42 U.S.C. 6872.
grant program for FY2006 through
FY2008.
ergy Programs Sec. 123. New requirements would beSec. 122. Same provision.
set for state energy conservation goals
and plans, including a 25% energy
efficiency improvement in 2012
iki/CRS-RL33006compared to 1990. Also, increased
g/wfunding would be authorized for FY2006through FY2008 for DOE state energy
s.orgrant programs.
leak
://wikiergy-Efficient Appliancebate Programs Sec. 124. DOE would be authorized tofund rebate programs in eligible states toSec. 123. Same provision.
httpsupport residential end-user purchases of
Energy Star products.
ergy-Efficient PublicSec. 125. A grant program would beSec. 124. Same provision.
ildings created for energy-efficient renovation
and construction of local government
buildings that reduce energy use by 30%
relative to standards (new buildings) or
baseline (renovoations).
w Income CommunitySec. 126. A pilot energy-efficiency andSec. 125. Same provision. Funding
ergy Efficiency Pilot Program renewable energy grant program wouldwould be authorized from 2006 through
be created for local governments, private2010.


companies, community development

CRS-15
sion House Senate Comments
corporations, and Native American
economic development entities. Funding
would be authorized from 2006 through
2008.
w Income and RuralSimilar to section 126 (above).Sec. 233. Similar intent as House bill, but
mmunity Energy Efficiencyfocused onremote and rural
t Program communities.” The Senate bill would
establish a grant program for “increasing
energy efficiency, siting or upgrading
transmission and distribution lines
serving rural areas; or providing or
iki/CRS-RL33006modernizing electric generation facilities
g/wthat serve rural areas.” Grant applications
s.orfor development of renewable energy
leaksources will be extendedpreference.”
Would provide $20 million annually for
://wiki FY2006-FY2012.
httpechnologiesNo similar provision.Sec. 126. A cooperative program would
vancement Collaborative be created that links DOE with the states.
It would be focused on research,
development, demonstration, and
deployment of technologies in which
there is a common federal and state
energy efficiency, renewable energy, and
fossil energy interest.
uilding EnergyNo similar provision.Sec. 127. A grant program would be
ficiency Codes Incentives created for states that DOE determines
have achieved a least a 90% rate of
compliance with the most recent model
building energy codes. Funds may be



CRS-16
sion House Senate Comments
used to implement building energy codes
and practices that exceed efficiency
requirements of the most recent model
building codes.
gy-Efficient Products
sion House Senate Comments
ergy Star Program Sec. 131. DOE and EPA would be givenSec. 131. Same provision. Also, DOE
iki/CRS-RL33006statutory authority to carry out thewould be directed to establish new
g/wEnergy Star program, which identifiesqualifying energy efficiency levels for
s.orand promotes energy-efficient productsclothes washers and dish washers.
leakand buildings.
://wikiAC Maintenance ConsumerSec. 132. DOE would be required toSec. 132. Similar provision.
httpucation Program implement a public education programfor homeowners and small businesses
that explained the energy-saving benefits
of improved maintenance of heating,
ventilating, and air conditioning
equipment. Also, the Small Business
Administration would be directed to
assist small businesses in becoming more
energy-e fficient.
blic Energy EducationNo similar provision.Sec. 133. DOE would be required to
ogram convene a conference with
representatives from industry, education,
professional societies, trade associations,
and government agencies to design and



CRS-17
sion House Senate Comments
establish an ongoing national public
education program focused on energy
efficiency and other topics. DOE would
be required to provide guidance and
technical assistance.
ergy Efficiency PublicNo similar provision.Sec. 134. DOE would be required to
formation Initiative conduct an advertising and public
outreach program about the need to
reduce energy use, the consumer benefits
of reduced use, the relationship to jobs
and economic growth, and cost-effective
iki/CRS-RL33006consumer measures to reduce energy use.
g/wergy Conservation StandardsSec. 133. DOE would be directed toSec. 135. Energy efficiency standards
s.orr Additional Products issue a rule that determined whetherwould be set by statute for all of the
leakefficiency standards should be set forstandards set by statute in the House bill
://wikistandby mode in battery chargers andexternal power supplies. Also, energyplus dehumidifiers, pre-rinse sprayvalves, and mercury vapor (streetlight)
httpefficiency standards would be set bylamp ballasts. Further, DOE would be
statute for exit signs, traffic signals,directed to issue a rule that prescribed
torchieres (floor lamps), distributionefficiency standards for ceiling fans,
transformers (electric utility equipment),vending machines, and the standby
unit heaters (fan-type heaters, usuallypower mode of battery chargers and
portable), and medium base compactexternal power supplies. Also, DOE
fluorescent lamps (CFLs). Further, DOEwould be authorized to set standards by
would be directed to issue a rule thatrule for residential furnace fans.


prescribed efficiency standards for
ceiling fans, vending machines,
commercial refrigerators and freezers and
refrigerator-freezers, and residential fans.

CRS-18
sion House Senate Comments
ergy Conservation StandardsNo similar provision.Sec. 136. Energy efficiency standards
r Commercial Equipment would be set by statute for commercial
air conditioning and heat pumps,
commercial refrigerators and freezers,
commercial clothes dryers, and
commercial ice makers.
pedited Rulemaking No similar provision.Sec. 137. The Energy Policy and
Conservation Act would be amended to
make conforming changes related to the
expedited rulemaking in Section 135.
iki/CRS-RL33006ergy Labeling Sec. 134. The Federal Trade CommissionSec. 138. Similar to House provision. FTC is currently required by Section 324(a) of the
g/w(FTC) would be required to considerimprovements in the effectiveness ofRequirements would apply to equipmentlisted in Senate section 135, exceptEnergy Policy and Conservation Act (P.L. 94-163)to issue rules for energy efficiency labels on
s.orenergy labels for consumer products.certain types of dehumidifiers would beconsumer products (42 U.S.C. 6294).
leakAlso, DOE or FTC would be directed toexempt from labeling requirements.
://wikiconsider prescribing labelingrequirements for many of the products
httplisted in section 133.
eemption Sec. 135. As of January 1, 2006, theNo similar provision.
energy efficiency standard for ceiling
fans set out in Section 133 shall
supersede all state and local standards for
ceiling fans.
onsumer Product EnergySec. 136. If the product efficiencySec. 135. Existing state and local
ficiency Standards standards set forth in Section 133 are notstandards for products listed elsewhere
implemented within three years of thisunder Section 135 would not be
laws enactment, the federal preemptionpreempted until the federal standards go
of state standards will expire. into effect.



CRS-19
sion House Senate Comments
termittent Escalators Sec. 137. With certain exceptions, allNo similar provision.
new escalators acquired for federal
buildings will operate on an intermittent
(on-demand) basis.
ergy Efficient Electric andNo similar provision.Sec. 139. DOE would be required to
ral Gas Utilities Study conduct a study of state and regional
policies that promote cost-effective
programs to reduce energy use (including
energy efficiency programs) that are
conducted by utilities subject to state
regulation and non-regulated utilities. A
iki/CRS-RL33006report to Congress would be required.
g/wergy Efficiency Pilot Program No similar provision.Sec. 140. DOE would be required to
s.orestablish a pilot program that provides
leakfinancial assistance to at least three, but
://wikinot more than seven, states to encourageenergy efficiency and energy use
http r e d uctio ns.
ergy Efficiency ResourceNo similar provision.Sec. 141. State regulatory agencies
ogram would be required to consider
implementing energy efficiency or other
demand reduction programs.
el Efficient EngineNo similar provision.Sec. 142. DOE and the National
chnology Program forAeronautics and Space Administration
rcraft (NASA) would be required to form a
cooperative agreement for a multi-year
program to develop 10% more fuel
efficient turbine-based propulsion and



CRS-20
sion House Senate Comments
power systems for aeronautical and
industrial applications.
or Vehicle Tires SupportingNo similar provision.Sec. 143. DOE would be required to
imum Fuel Efficiency conduct a national tire fuel efficiency
program for passenger cars and light
trucks. The program would include
establishing fuel economy standards for
tires, and the testing, labeling, and
promotion of purchases of energy-
efficient replacement tires.
iki/CRS-RL33006
g/wblic Housing
s.or
leak
sion House Senate Comments
://wiki
httpacity Building for Energy-cient, Affordable Housing Sec. 141. Activities would be requiredthat would provide energy-efficient,No similar provision.
affordable housing and other residential
measures under the HUD Demonstration
Ac t .
crease of CDBG PublicSec. 142. The amount of communityNo similar provision.The current limit is 15% under Sec. 105(a)(8) of
ices Cap for Energydevelopment block grant (CDBG) publicthe Housing and Community Development Act of
nservation and Efficiencyservices funding that could be used for1974.


tivities energy efficiency would be increased to
25%.

CRS-21
sion House Senate Comments
A Mortgage InsuranceSec. 143. Solar energy equipment can beNo similar provision.The current limit is 20% under Section 203(b)(2)
centives for Energy-Efficienteligible for up to 30% of the total amountof the National Housing Act.
using of property value that can be covered by
Federal Housing Administration
mortgage insurance.
blic Housing Capital Fund Sec. 144. The Public Housing CapitalSec. 161. Same provision.Under Section 9 of the United States Housing Act,
Fund would be modified to includethe Capital Fund is available to public housing
certain energy- and water-use efficiencyagencies to develop, finance, and modernize
improvements. public housing developments and to make
management improvements to these housing
facilities. There is currently no provision for
iki/CRS-RL33006energy conservation projects that involve water-
g/wconserving plumbing fixtures and fittings.
s.orts for Energy-ConservingSec. 145. The Department of HousingNo similar provision.Section 2(a)(2) of the National Housing Act, as
leakprovements for Assistedand Urban Development (HUD) wouldamended by Section 251(b)(1) of the National
://wikiusing be directed to provide grants for certainenergy and water efficiencyEnergy Conservation Policy Act, empowers HUDto make grants for energy conservation projects in
httpimprovements to multifamily housingpublic housing, but it has no provision for energy-
projects. and water-conserving plumbing fixtures and
fittings.
ergy-Efficient Appliances Sec. 147. Public housing agencies wouldSec. 162. Same provision.


be required to purchase cost-effective
Energy Star and FEMP-designated
appliances and products.

CRS-22
sion House Senate Comments
ergy-Efficient Standards Sec. 148. The energy efficiencySec. 163. Same provision.
standards and codes that the federal
government encourages states to use
would be changed from the codes set by
the Council of American Building
Officials to the 2003 International Energy
Conservation Code.
ergy Strategy for HUD Sec. 149. The Secretary of Housing andSec. 164. Same provision.
Urban Development would be required to
implement an energy conservation
strategy to reduce utility expenses
iki/CRS-RL33006through cost-effective energy-efficient
g/wdesign and construction of public and
s.orassisted housing.
leak
://wikiRenewable Energy
http
al Provisions
sion House Senate Comments
ssment of RenewableSec. 201. DOE would be required toSec. 201. Same provision.


ergy Resources report annually on the resource
development potential of solar, wind,
biomass, ocean (tidal, wave, current, and
thermal), geothermal, and hydroelectric
energy resources. DOE would be
required to review available assessments
and undertake new assessments as
necessary, accounting for changes in
market conditions, available
technologies, and other relevant factors.

CRS-23
sion House Senate Comments
newable Energy ProductionSec. 202. Eligibility for the existingSec. 202. Same provision.Federal law currently provides a 1.5 cent/kwh
centive incentive would be extended throughincentive for power produced from wind and
2025 and expanded to include electricbiomass by state and local governments and non-
cooperatives and tribal governments. profit electrical cooperatives (Energy Policy Act,
Qualifying resources would be expandedSec. 1212 [42 U.S.C. 13317]). The incentive is
to include landfill gas, livestock methane,funded by appropriations to DOE and was created
and ocean (tidal, wave, current, andto encourage public agencies, which are not
thermal) energy.eligible for tax incentives, in a fashion parallel to
the renewable energy production tax credit for
private sector businesses.
eral Purchase Requirement Sec. 203. Federal agencies would beSec. 203. Same provision.
iki/CRS-RL33006required, to the extenteconomically
g/wfeasible and technically practicable,” to
s.orpurchase power produced from
leakrenewable sources. The collective total
percentage of renewables use, as a share
://wikiof total federal electric energy use, wouldstart at 3% in FY2007, rise to 5% in
httpFY2010, and then reach 7.5% in 2013
and all subsequent years. Renewable
energy produced at a federal site, on
federal lands, or on Indian lands would
be eligible for double credit toward the
purchase requirement. A report to
Congress would be required every two
years.
sular Areas Energy Security Sec. 204. This section includesSec. 241 through Sec. 245. WouldFederal law currently requires comprehensive
congressional findings that electric powerrequire the Secretary of the Energy, inenergy plans for insular areas that describe the
transmission and distribution lines inconsultation with the Secretary of Interiorpotential for renewable energy resources.


insular areas are not adequate toto assess and report to Congress on
withstand hurricane and typhoonprojects with the greatest potential for
damage, and that an assessment is neededreducing dependence on fossil fuels used

CRS-24
sion House Senate Comments
of energy production, consumption,to generate electricity, and to promote
infrastructure, reliance on importeddistributed energy, in the insular areas.
energy, and indigenous sources of energyDOE would be authorized to provide
in insular areas. Would require thetechnical and financial assistance, on a
Secretary of the Interior, in consultationmatching basis with local utilities, for
with the Secretary of Energy and thefeasibility studies and the implementation
head of government of each insular area,of those projects the Secretary of Energy
to update insular area plans by 2007 todetermines are feasible and appropriate
reflect these findings, and to seek tofor implementation. No local match
reduce energy imports by increasingrequired for assistance.
energy conservation and energy
efficiency and by attempting to maximize
iki/CRS-RL33006the use of indigenous resources. Annual
g/wappropriations would be authorized that
s.orwould, in part, be used for matching
leakgrants (federal share maximum is 75%)
for projects designed to protect electric
://wikipower transmission distribution lines in
httpone or more of the territories of the
United States from damage caused by
hurricanes and typhoons.
t-InNo comparable provision.Sec. 227. Would allow Governors of 12
Northeastern states (the Ozone Transport
Region) to petition EPA to require RFG
use in attainment areas in their states.
The Administrator would be required to
do so unless he determines that there is
insufficient capacity to produce RFG, in
which case the commencement date of
the requirement shall be delayed.
forcement of StateNo comparable provision.Sec. 228. At the request of a state, would
ardsallow federal enforcement of state
controls on fuels and fuel additives.



CRS-25
sion House Senate Comments
e of Photovoltaic Energy inSec. 205. The General ServicesNo similar provision.
blic Buildings Administration (GSA) would be
authorized to encourage use of solar
photovoltaic energy systems in new and
existing buildings.
deral Procurement ofSec. 206. This provision amends theNo similar provision, but there are other7 U.S.C. 8201(c)(1) gives preference to
obased Products existing requirement that federal agenciesprovisions on biobased products andprocurement of items made with the highest
give procurement preference to itemsbiofuels in House section 939, and Senatepercentage of biobased products. 42 U.S.C.
composed of the highest percentage ofsections 938-944.6914b-1 provides for use of naturally degradable
biobased products practicable by addingmaterial in plastic ring carriers to help reduce litter
a specific reference to degradable six-and to protect fish and wildlife.
iki/CRS-RL33006pack rings.
g/womass Energy Findings Sec. 1701(a). This provision would noteNo similar provision.
s.orthat many communities near federal lands
leakare at risk to wildfire and to insect
://wikiinfestation and disease.
httpomass Energy Definitions Sec. 1701(b). This provision wouldSec. 251. This section is nearly identical
provide definitions of biomass and otherto section 1701(b) except that it would
terms that would be employed in theadd definitions of eligible operation
establishment of programs described inand “green ton.
Sections 1701(c) and 1701(d).
omass Commercial UtilizationSec. 1701(c). This provision wouldSec. 252. This section is nearly the same
t Program create a grant program to subsidizeas 1701(c), except that it also gives
biomass purchases for use in an energypriority to facilities in the highest risk
production facility. The purpose wouldareas.


be to encourage the removal of slash,
brush, pre-commercial thinning material
and other non-merchantable forest
biomass from federal lands and Indian
reservations for biomass energy
production.

CRS-26
sion House Senate Comments
proved Biomass UtilizationSec. 1701(d). This provision wouldSec. 253. This section is nearly the same
ogram create a grant program to supportas 1701(d), except that it adds to the list
proposal development for a project to beof priority conditions efficiency
pursued under Section 1701(c). A list ofimprovement, cleaner technology
priority conditions would also be set.development, and reduction of hazardous
fuel in the highest risk areas.
omass Energy Authorizations Sec. 1701(e). For the grant programs inSec. 252 (d). For the proposal
both 1701(c) and 1701(d), this provisiondevelopment grant program, this
would authorize annual appropriationssubsection would authorize annual
for FY2006 through FY2016.appropriations for FY2006 through
FY2010.
iki/CRS-RL33006 -
g/wSec. 252 (e). For the production subsidy
s.orgrant program, this subsection would
leakauthorize annual appropriations for
FY2006 through FY2010.
://wikiomass Energy Report Sec. 1701(f). This provision wouldSec. 254. This section would require a
httprequire that the Secretary of Agriculturereport that describes the interim results of
and Secretary of Interior jointly submit athe programs in sections 252 and 253.
report to Congress on the results of the
two grant programs in Section 1701(c)
and 1701(d). It would require that the
report identify biomass type, estimate the
hauling distance, and project economic
impacts.
newable Energy Security Sec. 207. For the DOE WeatherizationNo similar provision.


grant program, Section 207(a) increases
the limit on support for renewable energy
equipment from $2,500 to $3,000 per
dwelling unit. Also, Section 207(d)
creates a consumer rebate for renewable
energy equipment installed in a dwelling

CRS-27
sion House Senate Comments
or small business. The maximum rebate
is the lesser of 25% of equipment cost or
$3,000.
stallation of PhotovoltaicSec. 208. Would authorize $20 millionNo similar provision.
stem 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
iki/CRS-RL33006building of DOE.
g/wr Cane Ethanol PilotSec. 209. This provision authorizes aSec. 231. Would establish a program to
s.orogram three-year demonstration program for thestudy the production of ethanol from
leakproduction of ethanol in Hawaii tocane sugar, sugarcane, and sugarcane
://wikiparallel the existing program for corn toshow that the process can be applicablebyproducts. The program would belimited to projects in Florida, Louisiana,
httpto cane sugar and can be replicated on aTexas, and Hawaii. A total of $36
larger scale once the sugar cane industrymillion would be authorized.
has located a site and constructed ethanol
production facilities.
ewable Portfolio Standard No similar provision.Sec. 291. This provision would require
electric utilities that have service at the
retail level to obtain a percentage of base
generation from new or existing
renewable energy sources. Specifically,
it would require utilities to obtain 10% of
their generation from renewable energy
by 2020. Utilities would be able to meet
this renewable energy portfolio (RPS)
standard by self generating, purchasing
renewable energy from another utility, or



CRS-28
sion House Senate Comments
by purchasing tradable renewable credits
from DOE.
droelectric
sion House Senate Comments
native Conditions andSec. 231. This provision in H.R. 6 wouldSec. 281. This provision in H.R. 6 wouldUnder the Federal Power Act (FPA, 16 U.S.C. 797
aysallow interested parties to proposeallow license applicants and parties to theet. seq.) the Federal Energy Regulatory
alternative license conditions, and wouldlicense proceeding to propose alternativeCommission has primary responsibility for
require federal agencies to considerlicense conditions, and would requirebalancing multiple water uses and evaluating
iki/CRS-RL33006alternatives proposed by licensefederal agencies to consider thesehydropower relicensing applications. However,
g/wapplicants. It would also require analternatives. It would also require anthe FPA also creates a role in the licensing process
s.oragency to accept an applicant’s proposedagency to accept a proposed alternative iffor federal agencies that are responsible for
leakalternative if the agency found that thethe agency (1) found that the alternativemanaging fisheries or federal reservations (e.g.
alternative (1) provides for the adequateprovides for the adequate protection andnational forests, etc.). Specifically, sections 4(e)
://wikiprotection and utilization of the federalutilization of the federal reservation, or isand 18 of the FPA give certain federal agencies
httpreservation, or is no less protective of theno less protective of the fish resourcethe authority to attach conditions to FERC
fish resource than the fishway initiallythan the fishway initially prescribed, andlicenses. For example, federal agencies may
prescribed, and (2) costs less to(2) concurs with the license applicant’srequire applicants to build passageways through
implement, and/or will improve operationjudgement that the alternative costs lesswhich fish can travel around the dam, schedule
of the project for electricity production.to implement, and/or will improveperiodic water releases for recreation, ensure
operation of the project for electricityminimum flows of water for fish migration,
production. control water release rates to reduce erosion, or
limit reservoir fluctuations to protect the
reservoir’s shoreline habitat. Once an agency
issues such conditions, FERC must include them
in its license. While these conditions often
generate environmental or recreational benefits,
they may also require construction expenditures
and may increase costs by reducing operational
flexib ility.



CRS-29
sion House Senate Comments
When issuing conditions, H.R. 6 wouldSame as House bill.This equal consideration clause is a topic of
require agencies to provide FERC with adisagreement. Opponents of the provision are
written statement demonstrating that theconcerned that it would hamper agencies’ ability
relevant Secretary gaveequalto protect the resources under their jurisdiction;
consideration to the effects of theproponents argue that conditioning agencies, like
conditions on factors such as energyFERC, should be required to balance competing
supply, flood control, navigation, waterwater uses.
supply, and air quality.
H.R. 6 would require FERCs DisputeSame as House bill.FERC’s Dispute Resolution Service is a
Resolution Service to issue non-bindingfacilitative entity that is not currently established
advisories. to make recommendations.
iki/CRS-RL33006
g/wdroelectric Productioncentives Sec. 241. The Secretary of Energy wouldmake incentive payments to non-federalNo similar provision.
s.orowners or operators of hydroelectric
leakfacilities for power that is first produced
://wikiwithin 10 years of the date of enactmentby generating equipment added to
httpexisting facilities. Payments of 1.8 cents
per kilowatt-hour (kWh), up to a total of
$750,000/year, may be made for up to 10
years from the first year after the facility
begins operating.
droelectric EfficiencySec. 242. The Secretary of Energy wouldNo similar provision.


provement make incentive payments to the owners
or operators of hydroelectric facilities
who make capital improvements on
existing facilities that improve efficiency
by at least 3%. Payments would not
exceed 10% of the improvement cost and
would not exceed $750,000 at any single

CRS-30
sion House Senate Comments
facility.
all Hydroelectric PowerSec. 243. This provision would amendNo similar provision.
ojects the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2078), to change the
date on or before which a dam must be
constructed to qualify as an existing dam,
from April 20, 1977, to March 4, 2003.
aska State jurisdiction overNo similar provision.Sec. 282. Under this provision the State16 U.S.C. §823c allows the State of Alaska to
iki/CRS-RL33006all hydroelectric projects of Alaska could decide not to issueregulate Alaskas small hydroelectric projects
g/wconditions recommended by certain stateand federal resource agencies under 16in lieu of the Federal Energy RegulatoryCommission — if it meets certain conditions. For
s.orU.S.C. §823c (a)(3)(c).example, §(a)(3)(c) requires that the State of
leakAlaska establishconditions for the protection,
://wikimitigation, and enhancement of fish and wildlife”based on recommendations received from certain
httpfederal agencies.
t Creek hydroelectric projectNo similar provision.Sec. 283. This provision would allow the
Federal Energy Regulatory Commission
to extend, by 3 years, a preliminary
licensing permit for Flint Creek
Hydroelectric Project.



CRS-31
Oil and Gas
e and Home Heating Oil
sion House Senate Comments
rmanent Authority to OperateSec. 301. The House bill wouldSec. 301. The language in the Senate billCongress authorized the Strategic Petroleum
ic Petroleum Reserve permanently authorize the Strategicis identical in most respects. However,Reserve (SPR) in the Energy Policy and
Petroleum Reserve (SPR) program. Thethe Senate bill would require theConservation Act (EPCA, P.L. 94-163). In 2000,
authorization also permits U.S.Secretary to issue for public comment aCongress also authorized establishment of a
participation in emergency activities ofset of procedures for acquiring oil for theNortheast Heating Oil Reserve (NHOR). The
the International Energy Agency (IEA)SPR that would take into account theauthorities governing the SPR and NHOR are
without risking violation of antitrust lawcurrent future price and supply of crudecurrently authorized through FY2008 by P.L. 108-
iki/CRS-RL33006and regulation. The bill would encourageand petroleum products, balanced with7.
g/wthe Secretary of Energy to fill the SPR tonational security considerations. The
s.orits authorized size of 1 billion barrelsprocedures would also establish a process
leakwithout “incurring excessive cost orfor review of requests to delay scheduled
putting upward price pressure ondeliveries of oil to the SPR. These
://wikipetroleum products such as gasoline andprocedures would be required to be in
httpdiesel fuel, or home heating oil. place 180 days after enactment.
nal Oilheat ResearchSec. 302. Extends authorization of theSec. 302. Identical to the House
ce National Oilheat Research Allianceprovision.
(NORA) to 2010. NORA was
established by the Energy Policy Act of
2000 (P.L. 106-469), and assesses a fee
of $.002 per gallon on home heating oil
sold by retail distributors. The proceeds
are dedicated among other purposes to
research on improving the efficiency of
furnaces and boilers.
n Sec. 303. Tthe Secretary of EnergyNo comparable provision.


would be required, within one year of the

CRS-32
sion House Senate Comments
enactment of the legislation, to select
sites — from among those that have been
previously studied — for expansion of
the SPR to its fully authorized volume of
one billion barrels.
ension of StrategicSec. 304. Would permit acceptingNo explicitly comparable provision. Producers of offshore leases in the Gulf of Mexico
troleum Reserve Deliveries deliveries of royalty-in-kind (RIK) oil toHowever, see Senate Sec. 301 above forpay a royalty to the U.S. Treasury based upon
the SPR only when crude oil prices wereprocedures governing additional fill ofproduction at their sites. Since 1999, most new
below $40/barrel.the SPR consistent with oil price andfill of the SPR has been accomplished by the
supply.acceptance of royalty-in-kind (RIK) oil from these
producers in lieu of cash paid to the Treasury. It
iki/CRS-RL33006is not known whether the Administration plans to
g/wcontinue RIK fill after current contracts end
s.orduring the summer of 2005.
leakall Business and AgriculturalNo comparable provision.Sec. 303. Would establish a loan program
://wikioducer Energy Emergencyster Loan Program. to provide relief to qualifying smallbusinesses that have been jeopardized by
httpprice increases since January 1, 2005 in
the cost of petroleum fuels. Loans may
not exceed $1.5 million unless the
business is a major regional employer or
if the limit is otherwise waived. Loans
would be extended for the purpose of
displacing petroleum consumption
through the use of alternative or
renewable fuels. Would also amend the
Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) to
include agricultural producers under the
program.



CRS-33
oduction Incentives
sion House Senate Comments
quefied Natural Gas Sec. 320. This would expand the scopeSec. 381. This would amend section 3 of
of the Natural Gas Act (15 U.S.C. 717b)the Natural Gas Act, granting FERC
to include importing and exportingexclusive authority to approve the siting,
natural gas as well as the construction ofconstruction, and operation of import or
liquefaction and re-gasification facilities.export facilities. FERC would be
Building and operating such facilitiesprohibited from denying such a project
would require authorization by thebecause it is for the benefit of the project
Federal Energy Regulatory Commission.sponsor. Nor would it be permitted to
FERC would be designated as leadcondition authorization on allowing use
iki/CRS-RL33006agency for the purpose of coordinatingall applicable federal authorizations, andby another party, regulation of rates orother conditions of service, or the
g/wfor coordinating compliance with therequirement that rates or tariffs be filed
s.orNational Environmental Policy Act ofwith FERC.
leak1969 (42 U.S.C.4312). FERC would set a-
schedule ensuring expeditiousThis provision specifies that it would not
://wikiadministrative proceedings, and compileaffect the rights of states under the
httpthe consolidated record of all state andCoastal Zone Management Act of 1972
federal proceedings.(1 4 U.S.C. 1451), the Clean Water Act
(42 U.S.C. 7401), or the Federal Water
Pollution Control Act (33 U.S.C.1251).
-
Measures adding customers which have
the effect of degrading service for
existing customers or causing
subsidization of new customers rates by
old customers would be prohibited.



CRS-34
sion House Senate Comments
draulic Fracturing Sec. 327. Would amend the Safe DrinkingNo similar provision.The SDWA required EPA to promulgate
Water Act (SDWA), Section 1421(d), toregulations for state underground injection control
specify that the definition ofunderground(UIC) programs that included minimum
injection excludes the injection of fluidsrequirements for programs to prevent underground
or propping agents used in hydraulicinjection that endangers sources of drinking water.
fracturing operations related to oil or gas(§1421(b)(2)). Before 1997, EPA had not
production activities. Would removeconsidered regulating hydraulic fracturing for oil
EPAs current authority to regulate theand gas development, because it did not view this
underground injection of fluids used inwell-production process as an activity subject to
hydraulic fracturing, as needed to protectregulation under SDWA’s UIC program. The
drinking water. House provision responds to a 1997 court ruling
that directed EPA to regulate hydraulic fracturing
iki/CRS-RL33006of coalbed methane (CBM) wells as underground
g/w inj ectio n.
s.or(See Appendix A for more information)
leak
l and Gas Exploration andSec. 328. Would amend Section 502 of theNo similar provision.Currently under the CWA, the operation of
://wikiction Defined Clean Water Act (CWA) (the definitionsprovision) to give a permanent exemptionfacilities involved in oil and gas exploration,production, processing, transmission, or treatment
httpfrom CWA stormwater runoff rules for thegenerally is exempt from stormwater runoff
construction of exploration and productionregulations, but the construction of these facilities
facilities by oil and gas companies and theis not. The House amendment would modify the
roads that service those sites. Act to specifically include construction activities
in the types of oil and gas facilities that are
covered by the laws statutory exemption from
stormwater rules. (See Appendix B for more
inf o rma t io n)
ter Continental ShelfSec. 329. For applications to buildNo similar provision


ovisions deepwater ports, the Secretary of
Transportation could use environmental
impact statements or other studies
prepared by other federal agencies

CRS-35
sion House Senate Comments
instead of conducting separate studies.
Information from state and local
governments and private-sector sources
could also be used.
peals Relating to PipelineSec. 330. Appeals of decisions under theNo similar provision.
nstruction or OffshoreCoastal Zone Management Act on natural
eral Development Projects gas pipelines and offshore energy
projects would be based exclusively on
the record compiled by FERC or the
relevant permitting agency. It would be
the sense of Congress that appeals
iki/CRS-RL33006relating to natural gas pipeline
g/wconstruction would be coordinated within
s.orFERC’s established timeframes under
leaksections 3 and 7 of the Natural Gas Act
(15 U.S.C. 717 b 717 (f).
://wiki Natural Gas Storage No comparable provision.Sec. 382. Would authorize FERC to
httpallow provision of gas storage facilities at
market based rates for facilities place in
service after date of enactment.
ocess Coordination; Hearings;No comparable provision.Sec. 383. Strikes Sec. 15 of the Natural
les of Procedure Gas Act and inserts a new Sec. 15, which
defines Federal authorization as any
required under federal law, including
certificates of convenience and necessity.
-
FERC would be designated lead agency
for NEPA compliance, preparing a single
environmental review document and
setting a schedule for other Federal



CRS-36
sion House Senate Comments
authorizations. In situations where an
applicant or a state takes issue with this
process, an appeal to the President would
be provided for. The President would be
required to issue or deny an
authorization within 90 days.
ral Gas Market Reform Sec. 332. Would modify the CommoditySec. 384. Penalties. Modifies Natural
Exchange Act (CEA, 7 U.S.C. 13),Gas Act and Natural Gas Policy Act
banning “knowingly false or knowinglypenalties for violating FERC Orders.
misleading or knowingly inaccurateWould raise the prison term limit from 2
reports.” It also would increase theto 5 years, and the fine ceiling from
iki/CRS-RL33006penalties for false reporting.$500 per violation to $50,000 for each
g/wday the violation takes place. Violations
s.orof emergency orders would be subject to
leakfines up to $1 million per day.
-
://wikiCivil penalties for violating an orderunder the NGA would be subject to a
httpnew $1 million cap.
Sec. 385. Market Manipulation. Would
amend the NGA to prohibit using
deceptive practices to influence price
determination or reporting in
contravention of FERC regulations
protecting consumers.
Sec. 389. Prohibition of Trading and
Serving By Certain Individuals. Would
amend the NGA to facilitate banning of
individuals convicting of violating FERC
orders from being officers of natural gas
companies and prohibiting them from
trading natural gas.



CRS-37
sion House Senate Comments
ral Gas MarketSec. 333. Would direct FERC to issueSec. 386. Market Transparency.
ansparency rules calling for the timely reporting ofAnticipates that FERC could establish an
natural gas prices and availability and toelectronic bulletin board for making
evaluate the data for accuracy. Themarket information available to the
language specifies that FERC notpublic. Would provide for cooperation
impinge on the role of commercialwith the Commodity Futures Trading
publishers of natural gas prices.Commission. FERC would be prohibited
from competing with private market
information providers.
eral State Liquified NaturalNo comparable provision. Sec. 388. Within one year of enactment,
rums. the Secretary of Energy — in conjunction
iki/CRS-RL33006with FERC, the Secretaries of Homeland
g/wSecurity, Transportation and coastal state
s.orGovernors would be tasked with
leakconvening a series of 3 public forums to
take place in locations where LNG
://wikifacilities might be sited.
httpd Mineral IndustrySec. 334. Within a year after enactment,
ers the secretaries of Energy, Labor, and the
Interior must submit a report to Congress
with recommendations on meeting future
labor requirements for the domestic oil,
gas, and mining industries.
Oil Producing and ExportingNo comparable provision.Sec. 328. Would make it a violation of
rtels. the Sherman Act for foreign states or
their agents, by cartel or cooperative
action, to limit the production or
distribution of fossil fuels, act
collectively to set or maintain prices, or
restrain trade in markets for these fuels.



CRS-38
sion House Senate Comments
The doctrine of sovereign immunity from
U.S. jurisprudence would no longer
apply in the event of action being
brought against violators.
sion House Senate Comments
g and PermittingSec. 344. The Secretaries of the InteriorNo similar provisionThe federal oil and gas leasing program is governed
ocesses and Agriculture would be required tounder the Mineral Leasing Act of 1920, as amended
iki/CRS-RL33006sign a memorandum of understanding(30 U.S.C. 181 et. seq.). Bureau of Land
g/w(MOU) on the “timely processing of oilManagement (BLM) procedures for an application
s.orand gas lease applications, surface usefor a permit to drill (APD) are contained in 43 CFR
leakplans and drilling applications, the3162.3-1. The APD is posted for 30 days. Within 5
elimination of duplication, and ensuringworking days after the 30-day period, the BLM
://wikiconsistency in applying leaseconsults with surface-managing agencies whose
httpstipulations. consent is also required, then notifies the applicant
of the results. The BLM is also required to process
the application within the 35-day period.Sec. 346. Compliance with ExecutiveNo similar provision
Order No. 13211 (42 U.S.C. 12301 note),
requiring energy impact studies, would
be required before taking action on
regulations having an effect on domestic
energy supply.
couraging Prohibition ofSec. 355. Congress would urge that noNo similar provision


illing in the Great Lakes federal or state permits be issued for oil
and gas drilling in or under the Great
La ke s .

CRS-39
sion House Senate Comments
deral Coalbed MethaneSec. 358. States on the list ofaffectedSec. 391. Same provision.The list ofaffected states” established under the
gulation states” under section 1339(b) of the EnergyEnergy Policy Act of 1992 (42 U.S.C. 13368 (b))
Policy Act of 1992 (42 U.S.C. 13368(b))includes: West Virginia, Pennsylvania, Kentucky,
would be removed if they took specifiedOhio, Tennessee, Indiana, and Illinois. These
actions within three years after enactmentstates are on the list as a result of coalbed methane
of H.R. 6 or had previously taken action(CBM) ownership disputes, impediments to
under section 1339(b). development, lack of a regulatory framework to
encourage CBM development in the state, and no
current extensive development of CBM. A state
may be removed from the list through a
petitioning process initiated by the governor of
that state.
iki/CRS-RL33006
g/wning Revitalization
s.or
leak
sion House Senate Comments
://wiki
httport TitleSec. 371. This subtitle is designated asNo provision.Closure of refineries since 1981 has resulted in the
the “United States Refineryshuttering of nearly 500,000 barrels per day of
Revitalization Act of 2005.” capacity. While the number of operating facilities
has fallen from 324 to 149, the total amount of
capacity has risen, the result of expansion of
existing plants. But the investment climate for
expansion of old plants and construction of new
remains clouded, in part due to regulatory
uncertainty at the federal, state, and local levels.
The findings in the House bill make note of the
planned Yuma, AZ, refinery, which just received
its federal air quality permit after five years under
the current regulatory process.



CRS-40
sion House Senate Comments
ndingsSec. 372. Based on the finding that fuelNo provision.
demand exceeds the production capacity
of domestic refineries, it would be in the
national interest to increase capacity to
refine fuels within the United States. The
findings in this section also note that no
new refinery has been built in the country
since 1976, and there has been a
reduction in the number of operating
facilities. It also notes that gasoline
demand is expected to increase 45%
between 2005 and 2025.
iki/CRS-RL33006
g/wrposeSec. 373. The Acts purpose would be toNo provision.
s.orprovide an accelerated review and
leakapproval process for idled refineries, and
to lend legal and technical support to
://wikistates needing help to meet such permitdemands.
http
inery Revitalization ZonesSec. 374. Refinery Revitalization ZonesNo provision.


would be designated, and the Secretary of
Energy would identify areas (within 90
days after enactment) that have
experienced mass layoffs in
manufacturing, contain an idle refinery,
and have an unemployment rate that
exceeds the national average by 10%.

CRS-41
sion House Senate Comments
emorandum of UnderstandingSec. 375. This section calls for aNo provision.
memorandum of understanding between
the Secretary of Energy and the EPA
Administrator that would designate
appropriate agency officials and staff to
implement the purposes of the Act and
administer any regulations issued
thereunder. State Governors and Indian
Tribe representatives could enter into this
MOU.
vironmental PermittingSec. 376. Once a qualifying state entersNo provision.
iki/CRS-RL33006nceinto the MOU, this section calls on the
g/wSecretary of Energy to delegate agency
s.orstaff to provide assistance to the state.
leakThe EPA Administrator would be
similarly charged, and specifically
://wikidirected to provide expertise regardingthe laws the agency administers as they
httprelate to refineries.
ordination and ExpeditiousSec. 377. DOE would be designated leadNo provision.


iew of Permitting Processagency. Upon written request of an
applicant, the Department would
coordinate all applicable authorizations
and environmental reviews, including
those at the state and local level. It would
be required to set a prompt and binding
schedule for federal reviews and
authorizations, such that the whole
federal process would be completed
within six months. The Department
would maintain a complete consolidated

CRS-42
sion House Senate Comments
record of the proceedings, and act as the
arbiter in the case of appeals. Decisions
on appeals would be required within 60
days. The Secretary would establish a
60-day pre-application process to help
establish likelihood of approval and
identify potential issues. In its lead
agency role, the Department would
coordinate all federal actions for NEPA
compliance, as well as consolidation of
the impact statement into one document
covering all environmental impacts.
iki/CRS-RL33006
g/wmpliance With AllSec. 378. This section calls for theNo provision.
s.orronmental Regulationscompliance with all applicable laws and
leakq uir e d r e gul a t i o ns.
://wikiinitionsSec. 379. This section includesdefinitions for a number of significantNo provision.


httpitems, including: (1) Federal
authorizations means those required
under the Clean Air Act, the Federal
Water Pollution Control Act, the Safe
Drinking Water Act, the Comprehensive
Environmental Response, Compensation,
and Liability Act of 1980, the Solid
Waste Disposal Act, the National
Historic Preservation Act, and the
National Environmental Policy Act of
1969. (2) An idle refinery is real
property used as a refinery since
December 31, 1979, and not operational
before April 1, 2005. (3) A refinery

CRS-43
sion House Senate Comments
means any facility designed and operated
to store or ship oil, as well as to operate
as a refinery or a refinery component.
This includes places where fuel blending
took place. (4) A qualifying state is a
state or Indian tribe which has entered
into a MOU with the Secretary of
Energy, and has a refining infrastructure
coordination office.
iki/CRS-RL33006 Coal
g/w
s.orean Coal Power Initiative
leak
://wikision House Senate Comments
httpthorization of AppropriationsSec. 401. Funding for the Clean CoalSec. 401. Funding for CCPI would be
Power Initiative (CCPI) would beauthorized for $200 million for each year
authorized for $200 million for each yearfrom FY2006-FY2012. Specific
from FY2006-FY2014. reductions in mercury would be
estab lishe d .
oject CriteriaSec. 402. The technical criteria would beSec. 402. Similar provision, except
established for coal-based gasificationslightly different technical criteria by the
and other projects. The federal share ofyear 2020 for coal gasification projects.


financing for each clean coal project
would not exceed 50%.

CRS-44
sion House Senate Comments
portSec. 403. A report on the projects statusSec. 403. Same provision, except a report
and technical milestones would bewill be filed every two years through
submitted after the first year and every2012.
two years (through 2014) by the
Secretary of Energy to various
congressional committees.
ean Coal Centers ofSec. 404. Would include grants toSec. 404. Same provision
cellenceuniversities to establish Centers of
Excellence for energy systems of the
fut u r e .
iki/CRS-RL33006tegrated Coal/RenewableNo similar provision.Sec. 405. Integrated Coal/ Renewable
g/wergy SystemEnergy System. The Secretary wouldprovide loan guarantees for an integrated
s.orgasification combined cycle facility of at
leakleast 200 MW that would be combined
://wikiwith renewable energy sources, sequestercarbon dioxide emissions, and be a
httpsource of hydrogen for near-site fuel cell
demonstrations. The federal share would
not exceed 50%.
er Projects
sion House Senate Comments
ean Coal Technology LoanSec. 411. The Secretary of Energy wouldSec. 406. Similar provision, except the
be authorized to provide a $125 millionmaximum loan amount would be $80
loan to an experimental clean coal powermillion.


plant in Healy, Alaska.

CRS-45
sion House Senate Comments
al GasificationSec. 412. Loan guarantees would beSec. 407. Similar provision except that it
authorized for a power plant of at leastspecifies the coal would come from the
400 MW capacity using integratedwestern United States, the facility would
combined-cycle (IGCC) technology in abe located in a western state and would
deregulated market and receiving nonot be eligible for loan guarantees.
ratepayer subsidy.
troleum Coke GasificationSec. 414. Loan guarantees would beNo similar provision
available for at least five petro-coke
gasification polygeneration projects,
involving co-production of electricity and
fuels.
iki/CRS-RL33006
g/wectron ScrubbingonstrationSec. 416. The Secretary of Energy wouldbe directed to use $5 million ofNo similar provision
s.orappropriated funds to begin a project
leakmanaged by the DOE Chicago
://wikiOperations Office to demonstrate high-energy electron scrubbing technology for
httphigh-sulfur coal emissions.
and Related Programs
sion House Senate Comments
ean Air Coal Program/ CoalSec. 441. This section would amend theSec. 956. Similar provision.


d Related TechnologiesEnergy Policy Act of 1992 with the
addition of a clean air coal program to
promote increased use of coal,
acceptance of new clean coal
technologies, and advance deployment of

CRS-46
sion House Senate Comments
pollution control equipment to meet the
Clean Air Act (42 U.S.C. 7402 et seq.)
(See Appendix C for more
inf o rma t io n.)
Indian Energy
sion House Senate Comments
iki/CRS-RL33006ort TitleSec. 501. This title would be cited as the“Indian Tribal Energy Development andSec. 501. Similar provision.
g/wSelf-Determination Act of 2005.”
s.or
leakfice of Indian Energy PolicySec. 502. Title II of the Department ofSec. 502. Similar provision.
d Programs Energy Organization Act (42 U.S.C.
://wiki7131 et. seq.) would be amended to
httpcreate the Office of Indian Energy Policy
and Programs at the Department of
Energy.
dian Energy Sec. 503. Title 26 the Energy Policy ActSec. 503. Similar provision.Assistance for tribal energy development would
of 1992 (25 U.S.C. 3501) would bebe provided through DOI by grants and low-
replaced by this section, which outlinesinterest loans and through DOE by grants and loan
procedures whereby Indian tribes wouldguarantees. Federal agencies could give
be able to develop and manage thepreference to Indian energy when purchasing
energy resources located on, and rights-energy products and byproducts. DOI would be
of-way through, tribal land. Within arequired to undertake a review and make
year of enactment of the bill, therecommendations regarding tribal opportunities
Department of the Interior (DOI) wouldunder the Indian Mineral Development Act of
issue regulations on the requirements for1982 (25 U.S.C. 2101 et. seq.). The Bonneville
approval of tribal energy resourcePower Administration and Western Area Power



CRS-47
sion House Senate Comments
agreements. Under their own tribalAdministration would be authorized to assist in
energy resource agreements as approveddeveloping distribution systems that provide
by DOI, Indian tribes would be able topower to Indian tribes using the federal
enter into leases or business agreementstransmission system.
for energy development and grant rights-
of-way over tribal land for pipelines or
electric lines.
nsultation with Indian Tribes Sec. 504. The Secretaries of Energy andSec. 506. Similar provision.
of the Interior would be required to
consult with Indian tribes in carrying out
this title.
iki/CRS-RL33006
g/wur Corners Transmission Lineoject Sec. 505. The Dine Power Authority, anenterprise of the Navajo nation, would beSec. 504. Similar provision.
s.oreligible to receive grants and other
leakassistance to develop a transmission line
://wikifrom the Four Corners Area to southernNevada, including related generation
httpfacilities.
ergy Efficiency in FederallyNo provision.Sec. 505. Would amend the Native
d Housing.American Housing and Self-
Determination Act of 1996 to include as
a goal “greater energy efficiency.”



CRS-48
Nuclear Matters
ice-Anderson Act Amendments
sion House Senate Comments
ort TitleSec. 601.Price-Anderson AmendmentsSec. 601. Same.The Price-Anderson Act, which addresses liability
Act of 2005.”for damages to the general public from nuclear
incidents, would be extended through 2025 by
both bills. The Price-Anderson liability system
was up for reauthorization on August 1, 2002, and
was extended for commercial nuclear reactors
through December 31, 2003, by the FY2003tension of IndemnificationthoritySec. 602. Price-Anderson liabilitycoverage for commercial reactors, DOESec. 602. Same.
consolidated appropriations resolution (P.L. 108-contractors, and non-profit educational
iki/CRS-RL330067). Even without further extension, existing
g/wreactors will continue to operate under the currentinstitutions would be extended through
s.orPrice-Anderson liability system, but any newDecember 31, 2025.
leakreactors would not be covered. Price-Andersonaximum AssessmentSec. 603. The total retrospectiveSec. 603. Same.
coverage for DOE nuclear contractors waspremium for each reactor would be set at
://wikiextended through December 31, 2004, by thethe current level of $95.8 million and the
httpNational Defense Authorization Act for FY2003limit on per-reactor annual payments
(P.L. 107-314). A further two-year extension forraised to $15 million. Both levels would
DOE contractors was approved by Congress onbe adjusted for inflation every five years,
October 9, 2004, as part of the Ronald W. Reaganbeginning August 20, 2003.
National Defense Authorization Act for Fiscal
Year 2005 (P.L. 108-375).artment of Energy LiabilitySec. 604. The liability limit for DOESec. 604. Same.
(See Appendix D for more information.)mitcontractors would be set at $10 billion
per incident, to be adjusted for inflation
every five years under Sec. 607.
cidents Outside the UnitedSec. 605. The liability limit andSec. 605. Same.


maximum indemnification for DOE
contractors for nuclear incidents outside

CRS-49
sion House Senate Comments
the United States would be raised from
$100 million to $500 million.
portsSec. 606. NRC and DOE would have toSec. 606. Same.
report to Congress by the end of 2021 on
the need for further Price-Anderson
extensions and modifications.
flation AdjustmentSec. 607. The liability limit for DOESec. 607. Same.
nuclear contractors would be adjusted for
inflation every five years after July 1,
2003.
iki/CRS-RL33006eatment of Modular ReactorsSec. 608. For the purpose of applying theSec. 608. Same.For example, a power plant with six 120-
g/wlimits on retrospective premiums after amegawatt modular reactors would be liable for
s.ornuclear incident, a nuclear plantretrospective premiums of up to $95.8 million,
leakconsisting of multiple small reactorsrather than $574.8 million.
://wiki(100-300 megawatts per reactor, up to atotal of 1,300 megawatts at the plant site)
httpwould be considered a single reactor.
plicabilitySec. 609. None of the increased liabilitySec. 609. Same.
limits would apply to nuclear incidents
taking place before the amendments are
enacted.
ohibition on U.S. Liability forSec. 610. Price-AndersonNo provision.


rtain Foreign Incidentsindemnification would be prohibited for
contracts related to nuclear facilities in
countries found to sponsor terrorism.
The prohibition would not apply to
missions necessary for nuclear safety or
no np r o lifer atio n.

CRS-50
sion House Senate Comments
il PenaltiesSec. 611. For future contracts, the billSec. 610. Substantially the same.
would eliminate the civil penalty
exemption for nuclear safety violations
by the seven non-profit contractors listed
in current law. DOE’s authority to
automatically remit penalties imposed on
all non-profit educational institutions
serving as contractors would also be
repealed. However, the bill would limit
the civil penalties against a non-profit
contractor to the amount of management
fees received under that contract within a
iki/CRS-RL33006one-year period.
g/w
s.orancial AccountabilitySec. 612. The federal government couldNo provision.
leaksue DOE contractors to recover at least
some of the compensation that the
://wikigovernment had paid for any accidentcaused by intentional DOE contractor
httpmanagement misconduct. Such cost
recovery would be limited to the amount
of the contractor’s profit under the
contract involved, and no recovery would
be allowed from nonprofit contractors.
atters
sion House Senate Comments
mmercial Reactor LicenseSec. 621. The initial 40-year period for aNo provision.Currently, under Atomic Energy Act Section 185
od commercial nuclear reactor license wouldb. (added by the Energy Policy Act of 1992, P.L.
begin when NRC authorized the reactor102-486), the 40-year initial license period may



CRS-51
sion House Senate Comments
to commence operation after constructionbegin when a “combined construction and
had been completed.operating license” is issued several years before
the reactor is to start operating. Before Section
185 was added in 1992, reactor operating licenses
had been issued only after construction was
complete, but any future licenses are expected to
use the combined license option.
raining and FellowshipSec. 622. Funding of $1 million per yearNo provision.
ogram would be authorized from FY2005-
FY2009 for NRC to conduct a training
and fellowship program to develop
iki/CRS-RL33006critical nuclear safety regulatory skills.
g/wst Recovery FromSec. 623. NRC would be authorized toNo provision.Such authority is limited under current law
s.orernment Agencies charge cost-based fees for all services(Atomic Energy Act, Section 161 w.).
leakrendered to other federal agencies.
://wiki
httpination of Pension OffsetSec. 624. When NRC has a critical needNo provision.
r Key NRC Personnel for the skills of a retired employee, NRC
could hire the retiree as a contractor and
exempt him or her from the annuity
reductions that would otherwise apply.
titrust Review Suspension Sec. 625. NRC would no longer have toNo provision.


submit nuclear reactor license
applications to the Attorney General for
antitrust reviews, as currently required by
Atomic Energy Act Section 105 c.

CRS-52
sion House Senate Comments
commissioning FundSec. 626. NRC would be explicitlyNo provision.This provision is particularly aimed at cases in
otection authorized to issue regulations ensuringwhich an original nuclear power plant owner has
that funds collected to decommissionsold the plant but retained control over
nuclear power plants would not be useddecommissioning funds collected before the
for other purposes.ownership transfer.
mitation on DOE Legal FeeSec. 627. Except as required by existingNo provision.
imbursement contracts, DOE would be prohibited from
reimbursing its contractors for legal
expenses incurred in defending against
whistleblower” complaints that are
ultimately upheld.
iki/CRS-RL33006
g/wility Study formmercial Reactors at DOESec. 629. The Secretary of Energy wouldbe required to submit a study to CongressNo provision.
s.oron the feasibility of developing
leakcommercial nuclear power plants at
://wikiexisting DOE sites.
httpvernment Uranium Sales Sec. 630. With certain exceptions, DOENo provision.


uranium sales would be restricted to 3
million pounds per year from FY2005-
FY2009, 5 million pounds per year in
FY2010-FY2011, 7 million pounds per
year in FY2012, and 10 million pounds
per year thereafter. DOE must report to
Congress within three years on the
impact of such sales on the domestic
uranium industry.

CRS-53
sion House Senate Comments
ium Mining Research andSec. 631. Funding of $10 million perNo provision.
velopment year would be authorized during
FY2006-FY2008 for a cost-shared
research and development program by
DOE and domestic uranium producers on
in-situ leaching mining technologies and
related environmental restoration
technologies, except that “no activities
funded under this section may be carried
out in the State of New Mexico.”
histleblower Protection Sec. 632. Existing whistleblowerSec. 625. Whistleblower protections
iki/CRS-RL33006protections for employees of nuclearwould be extended to employees of DOE
g/wpower plants and other NRC licenseesand all DOE contractors and
s.orand employees of DOE contractorssubcontractors. An employee could take
leakwould be extended to employees of NRCa whistleblower complaint to federal
contractors. An employee whosecourt if the Secretary of Labor had not
://wikiwhistleblower retaliation complaint didnot receive a final decision by themade a final decision within 180 days.
httpSecretary of Labor within 540 days could
take the case to federal court.
anium Exports for MedicalSec. 633. Highly enriched uraniumSec. 621. NAS would study theThe current HEU export restrictions are intended
ope Production (HEU) could be exported to Canada,effectiveness of the current HEU exportto spur foreign cooperation with U.S. efforts to
Belgium, France, Germany, and therestrictions, the progress that medicalconvert all HEU reactors to LEU, but supporters
Netherlands for production of medicalisotope producers are making inof the exemption contend that the restrictions
isotopes in nuclear reactors. Thoseconverting to LEU, whether the supply ofcould disrupt the supply of medical isotopes
countries would be exempt from existingmedical isotopes could be affected by theproduced in foreign HEU reactors.


requirements (under Section 134 of theHEU restrictions, and other aspects of the
Atomic Energy Act) that they agree toissue.
switch to low-enriched uranium (LEU) as
soon as possible and that LEU fuel for
their reactors be under active

CRS-54
sion House Senate Comments
development. Instead, those countries
would have to agree to convert to suitable
LEU fuel when it became available.
NRC would have to review current
security requirements for HEU used for
medical isotope production and impose
additional requirements if necessary.
The National Academy of Sciences
(NAS) would study the potential
availability and cost of medical isotopes
produced in LEU reactors; that study
would be used by DOE to help determine
iki/CRS-RL33006whether U.S. medical isotope demand
g/wcould be reliably and economically met
s.orwith production facilities that do not use
leakHEU. If the Secretary of Energy certifies
that such demand can be met, the export
://wikiexemption in the House bill would
httpter minate.
rnald Byproduct Material Sec. 634. DOE-managed material in theNo provision.


concrete silos at the Fernald (OH)
uranium processing facility would be
considered byproduct material (as
defined by section 11 e.(2) of the Atomic
Energy Act of 1954 (42 U.S.C.
2014(e)(2)). DOE would dispose of the
material in an NRC- or state-regulated
facility.

CRS-55
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e Disposal of Greater-than-Sec. 635. DOE would designate an officeSec. 622. Similar to House provision,
ass-C Radioactive Waste with the responsibility for developing awith the additional requirement that
comprehensive plan for permanentwithin 180 days after enactment DOE
disposal of all low-level radioactivewould give Congress a plan for continued
waste with concentrations ofrecovery and storage of radioactive
radionuclides that exceed the limitssealed sources that pose a security threat.
established by the NRC for Class C
radioactive waste. The plan would
include developing a new facility or use
of an existing facility for disposal.
ohibition on Nuclear ExportsSec. 636. Exports of nuclear materials,Sec. 623. Same.This provision is intended to block
iki/CRS-RL33006errorism Sponsors equipment, and sensitive technologyimplementation of a 1994 agreement under which
g/wwould be prohibited to any countryNorth Korea was to receive a U.S.-designed
s.oridentified by the Secretary of State as anuclear power plant in return for abandoning its
leaksponsor of terrorism. The President couldnuclear weapons program. The agreement has
waive the export restriction under certainbeen suspended in light of North Korea’s
://wikiconditions. continuing weapons activities.
httpnal Uranium Stockpile Sec. 638. The Secretary of Energy wouldNo provision.
be authorized to create a national low-
enriched uranium stockpile.
clear Regulatory CommissionSec. 639. Whenever a quorum of theNo provision.


eetings Nuclear Regulatory Commission gathers
to discuss official business, other than at
formal Commission meetings, the
discussions would have to be recorded
and the public notified within 15 days. A
transcript of the recording would be
available to the public upon request
except for information that is exempted
or prohibited from disclosure by law.

CRS-56
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ployee BenefitsSec. 640. Subject to the availability ofNo provision.
funds, workers at DOE’s uranium
enrichment plants at Portsmouth, Ohio,
and Paducah, Kentucky, who were
eligible for certain pension and health
care benefits on April 1, 2005, shall
continue such eligibility.
missioning Pilot ProgramNo provision.Sec. 624. DOE would be required to
establish a program to decommission and
decontaminate the site of the Southwest
Experimental Fast Oxide Reactor
iki/CRS-RL33006(SEFOR) in Arkansas. Funding of $16
g/wmillion would be authorized.
s.or
leak
://wikivanced Reactor Project
http
sion House Senate Comments
vanced Reactor Project Sec. 651. DOE would be authorized toSecs. 631-635. Similar to House
develop, design, construct, and operateprovision. The project would be called
an advanced nuclear reactor to producethe Next Generation Nuclear Plant
hydrogen and electricity, called theProject and could produce electricity,
Advanced Reactor Hydrogenhydrogen, or both. Program plans for
Cogeneration Project. The project wouldthe project would be reviewed by DOEs
be managed by the DOE Office ofNuclear Energy Research Advisory
Nuclear Energy, Science, andCommittee. DOE would be required by
Technology, and the reactor would bethe end of FY2011 to select the
located at the Idaho National Laboratory.technology to be used for high-
The project could be combined withtemperature hydrogen production or
DOE’s existing Generation IV Nuclearnotify Congress of an alternative date. A



CRS-57
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Energy Systems Initiative, which focusesdesign competition would then by held,
on development of advanced nuclearand the target date to complete
power technology. Among otherconstruction would be the end of
requirements, the project should beginFY2021. Funding of $1.25 billion would
producing hydrogen or electricity bybe authorized through FY2015, plus such
2011 unless the Secretary of Energy findssums as necessary from FY2016 through
that goal infeasible. The reactor wouldFY2021.
be licensed and regulated by NRC. Five
projects to demonstrate hydrogen
production at existing nuclear power
plants would also be authorized. Funding
for the program would be authorized at
iki/CRS-RL33006$1.3 billion through FY2015.
g/w
s.orinitionsSec. 652.Advanced nuclear reactorNo provision.
leaktechnologies” and other terms are
defined.
://wiki
http
sion House Senate Comments
clear Facility Threats Sec. 661. In consultation with NRC andNo provision.NRC has been reviewing security requirements at
other appropriate agencies, the Presidentnuclear facilities since the 9/11 terrorist attacks.
would be required to identify types ofThe “design basis threat” that nuclear plant
security threats at nuclear facilities. Thesecurity forces must defend against has been
President would have to issue reports onrevised, and all reactor sites must now conduct
the identified threats and on actions takenforce-on-force security exercises every three
or to be taken to address the threats. years. NRC contends that legislation in this area
NRC would be authorized to revise itsis therefore unnecessary, but others contend that
regulations based on the President’sNRCs security requirements are inadequate.



CRS-58
sion House Senate Comments
threat-identification report. NRC would
be required to conduct periodic force-on-
force exercises to test nuclear facility
security. NRC would be authorized to
issue regulations to protect information
about nuclear facility security, and would
be required to assign a security
coordinator to each NRC region.
ngerprinting for CriminalSec. 662. The existing requirement thatNo provision.
ckground Checks individuals be fingerprinted for criminal
background checks before receiving
iki/CRS-RL33006unescorted access to nuclear power plants
g/w(Atomic Energy Act, Section 149) would
s.orbe extended to individuals with
leakunescorted access to any radioactive
material or property that could pose a
://wikihealth or security threat. Other biometricmethods could be used instead of
httpfi nge r p r i nt i ng.
e of Firearms by NuclearSec. 663. NRC would be authorized toNo provision.Federal law currently authorizes NRC employees
censees allow the use of firearms by securityand contractors to use firearms, but not employees
personnel at nuclear power plants andor contractors of nuclear licensees (Atomic
other facilities licensed or regulated byEnergy Act, Section 161 k.). This provision would
NRC.counter some state laws that preclude private
guard forces from utilizing some weapons.
authorized Introduction ofSec. 664. Existing NRC controls on theNo provision.


ngerous Weapons entry of dangerous weapons or materials
into Commission facilities (Atomic
Energy Act, Section 229a) would be

CRS-59
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extended to commercial nuclear power
plants and other NRC-regulated facilities.
otage of Nuclear Facilities orSec. 665. Maximum penalties forNo provision.
sabotage of licensed nuclear facilities or
materials (Atomic Energy Act, Section
236 a.) would be increased from $10,000
and 10 years in prison to $1 million and
life imprisonment without parole. The
language would clarify that the penalties
could apply to facilities “certified as
well aslicensed” by NRC, and also to
iki/CRS-RL33006sabotage of facilities under construction.
g/wre Transfer of NuclearSec. 666. Nuclear materials transferredNo provision.
s.or or received in the United States pursuant
leakto an import or export license would have
://wikito be accompanied by a detailedmanifest. Every worker involved in such
httpshipments would have to undergo a
federal security background check.
partment of HomelandSec. 667. Before issuing a license for aNo provision.
rity Consultation nuclear power plant, NRC would have to
consult with the Department of
Homeland Security about the
vulnerability of the proposed plant
location to terrorist attack.
thorization of Appropriations Sec. 668. Appropriation of such sums asNo provision.The current fee requirement, imposed by the
necessary to carry out this subtitle wouldOmnibus Budget Reconciliation Act of 1990 (42
be authorized. A statutory requirementU.S.C. 2214), is set to expire September 20, 2005.


that the Nuclear Regulatory Commission

CRS-60
sion House Senate Comments
recover 90% of its costs (minus certain
exceptions) through licensee fees would
be made permanent. NRCs costs in
regulating residual defense radioactive
waste under Section 3116 of the Ronald
W. Reagan National Defense
Authorization Act for Fiscal Year 2005
(50 U.S.C. 2601 note) would be excluded
from costs subject to the 90% cost
recovery requirement.
iki/CRS-RL33006
g/wVehicles and Fuels
s.or
leaksting Programs
://wiki
httpsion House Senate Comments
e of Alternative Fuels bySec. 701. Section 400AA of EPCA wouldSec. 701. Similar provision.The sections of this subtitle refer to alternative
al-Fueled Vehicles be amended to require that all federalfuel and vehicle purchase requirements under the
agencies operate dual-fueled vehicles onEnergy Policy and Conservation Act (EPCA)
alternative fuels or petition the Secretary(P.L. 94-163) and the Energy Policy Act of 1992
of Energy for a waiver from the(EPAct, P.L. 102-486). Under current law,
requirement. agencies are not required to file a petition to be
exempted from the requirement.
el Use Credits No comparable provision.Sec. 702. Would allow agencies toUnder current law, for covered fleets a set
consume alternative fuels in lieu ofpercentage (depending on the type of fleet) of new
making required alternative fuel vehiclelight-duty vehicle purchases must be alternative
purchases under the Energy Policy Act offuel vehicles. For every 450 gallons of biodiesel
1992.(but not other alternative fuels) consumed by a



CRS-61
sion House Senate Comments
covered fleet, that fleet may purchase one fewer
alternative fuel vehicle.
cremental Cost Allocation Sec. 704. Section 303(c) of EPAct allowsSec. 703. Identical provision.
federal agencies to allocate the
incremental cost of required alternative-
fuel vehicles across the whole vehicle
fleet. H.R. 6 would require agencies to
do so.
native Compliance andNo comparable provision.Sec. 704. Would require the Secretary of
ibility Energy to allocate vehicle purchase
iki/CRS-RL33006credits for: the acquisition of hybrid
g/wvehicles; the installation of alternativefuel refueling infrastructure; or other
s.oractions that will reduce petroleum
leak c o nsump t i o n.
://wikie Condensates Sec. 705. Would amend the definition ofNo comparable provision.
httpalternative fuel to include lease
condensate (liquids recovered from
natural gas separation) and fuels derived
from lease condensate. Fleets could
generate one vehicle purchase credit for
the use of a certain volume (to be
determined by the Secretary of Energy)
of lease condensate fuel in medium- and
heavy-duty vehicles. This provision is
similar to the existing credit structure for
the use of biodiesel.
iew of Energy Policy Act ofSec. 706. The Secretary of Energy wouldSec. 1308. Similar provision.


rams be required to conduct a study on the

CRS-62
sion House Senate Comments
effectiveness of the alternative fuel
vehicle programs under EPAct.
Specifically, the Secretary would be
required to assess the effects on vehicle
technology, availability, and cost.
port Concerning ComplianceSec. 707. Would extend through 2020Sec. 705. Identical provision.
Alternative Fuel Vehiclethe requirement that each federal agency
rchasing Requirements report annually (currently required
through 2012) to Congress on its
compliance with EPAct vehicle purchase
requirements.
iki/CRS-RL33006
g/wocurement of Alternativeeled Passenger Automobiles No comparable provision.Sec. 723. Federal fleets not otherwisecovered by the EPAct alternative fuelIn general, the above EPAct requirements apply tofleets of 50 vehicles or more, of which at least 20
s.orvehicle requirements would be mandatedoperate primarily in metropolitan areas.
leakto purchase solely alternative fuel
://wikipassenger automobiles unless there isinsufficient supply of alternative fuel.
http
rement of Hybrid LightNo comparable provision.Sec. 724. Federal agencies with fleets
ty Trucks not otherwise covered by the EPAct
alternative fuel vehicle requirements
would be mandated to purchase solely
hybrid light-duty trucks, unless: those
vehicles cannot meet the fleets
requirements for capabilities; the vehicles
are not commercially available; or the
incremental cost of the hybrid vehicle is
significant. This section would exclude
the Department of Defense from the
requirement.



CRS-63
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initionsNo comparable provision.Sec. 725. Alternative fueled vehicle and
other terms would be defined.
brid Vehicles, Advanced Vehicles, and Fuel Cell Buses
sion House Senate Comments
brid Vehicles Sec. 711. Would require the Secretary ofSec. 721. Similar provision, except that
Energy to accelerate research on$50 million annually would be
technologies for hybrid vehicles. Noauthorized for FY2006 through FY2008.
iki/CRS-RL33006funding authorization is included.
g/w
s.orbrid Retrofit and ElectricSec. 712. The Administrator of theNo comparable provision.
leaknversion Program Environmental Protection Agency (EPA)
would be required to establish a grant
://wikiprogram for the installation of
httptechnologies to retrofit existingcombustion engines with electric or
hybrid systems. Retrofitted vehicles
must achieve federal Low Emission
Vehicle standards. Would authorize a
total of $100 million between FY2005
and FY2007 for the program.
ficient Hybrid and AdvancedSec. 713. The EPA Administrator wouldNo comparable provision.


el Vehicles be required to establish a program to
encourage the domestic production and
sale of efficient hybrid and advanced
diesel vehicles. The program must
include grants to domestic vehicle
manufacturers to encourage production

CRS-64
sion House Senate Comments
and provide consumer purchase
incentives. A total of $3 billion is
authorized between FY2006 and
FY2015.
vanced Vehicles Secs. 721-724. The Secretary of EnergyNo comparable provision.
would be authorized to provide grants to
state governments, local governments,
and metropolitan transit authorities for
the purchase of alternative fuel, hybrid,
fuel cell, and ultra-low sulfur diesel
vehicles (defined in Sec. 721) and the
iki/CRS-RL33006nfrastructure to support them. The
g/wprogram would be administered through
s.orthe Clean Cities Program.
leakSec. 722. Grants would be capped at $20No comparable provision.
://wikimillion per applicant. Between 20% and25% of all grant funds would be used for
httpultra-low sulfur diesel vehicles.
Sec. 723. The Secretary would beNo comparable provision.
required to submit reports to Congress
identifying grant recipients and
evaluating the programs effectiveness.
Sec. 724. $200 million total would beNo comparable provision.
authorized for the grant program.
el Cell Transit BusSec. 731. The Secretary of Energy wouldNo comparable provision.


onstration be required to establish a program to
demonstrate up to 25 fuel cell transit
buses in various localities. $10 million

CRS-65
sion House Senate Comments
annually would be authorized for
FY2006 through FY2010.
int Flexible Fuel/HybridNo comparable provision.Sec. 706. The Secretary of Energy would
icle Commercializationbe required to establish a grant program
itiative for applied research on flexible fuel
hybrid vehicles. A total of $40 million
would be authorized between FY2005
and FY2008.
iki/CRS-RL33006ean School Buses
g/w
s.orsion House Senate Comments
leak
initionsSecs. 741-744. Definitions ofalternativeNo comparable provision.
://wikifuel school bus and other terms are
httpprovid ed.
ogram for Replacement ofSec. 742. A pilot program administeredNo comparable provision.


rtain School Buses Withby the Environmental Protection Agency
ean School Buseswould be established to provide grants to
local governments and contractors that
provide school bus service for public
school systems. Grants would be
provided to aid in the purchase of
alternative fuel and advanced diesel
buses, and the infrastructure necessary to
support them. A total of $200 million
would be authorized for FY2005 through
FY2007, and a maximum of 30% of the

CRS-66
sion House Senate Comments
grant funds could be used to purchase
advanced diesel buses.
ofit ProgramSec. 743. A pilot program would also beNo comparable provision.
established to provide grants for the
development and application of retrofit
technologies for diesel school buses. A
total of $100 million would be authorized
for FY2005 through FY2007.
ol Buses Sec. 744. In addition, a pilot programNo comparable provision.
would be established for the development
iki/CRS-RL33006and demonstration of fuel cell school
g/wbuses. A total of $25 million would beauthorized for FY2005 through FY2007.
s.or
leakel Truck Retrofit and FleetSec. 743A. The EPA AdministratorSecs. 751-757. The EPA Administrator
://wikiization Program would be required to establish a programto provide grants (administered by statewould be required to establish a programto provide grants and loans for diesel
httpor local governments) to modernizeengine retrofits. Would require EPA to
cargo truck operations. Grants would beprovide grants and loans for retrofits of
used to retrofit pre-1999 vehicles withvarious types of engines including buses,
advanced emissions control devices. Aheavy-duty trucks, locomotives, and
total of $100 million would be authorizedmarine engines. Would require EPA to
between FY2005 and FY2007.support grant and loan programs
administered by the states. Would
require a report to Congress evaluating
the implementation of the programs.
$200 million would be authorized
annually for FY2006 through FY2010.



CRS-67
scellaneous
sion House Senate Comments
ilroad Efficiency Sec. 751. A public-private researchSec. 731. Similar provision.
partnership would be established for the
development and demonstration of
locomotive engines that increase fuel
economy, reduce emissions, and lower
costs. A total of $110 million would be
authorized for FY2006 through FY2008.
bile Emission ReductionsSec. 752. Within 180 days of enactment,No provision.
iki/CRS-RL33006adingthe EPA Administrator would be requiredto submit a report to Congress on EPAs
g/wexperience with the trading of mobile
s.orsource emission reduction credits to
leakstationary sources to meet emission offset
requirements within Clean Air Act
://wikinonattainment areas.
http
iation Fuel Conservation andSec. 753. This section would require theNo provision.


issions Federal Aviation Administration and
EPA to initiate a joint study of the impact
of aircraft emissions on air quality in
Clean Air Act nonattainment areas, ways
to promote fuel conservation measures
and reduce emissions, and opportunities
to reduce air traffic inefficiencies that
increase fuel burn and emissions within
60 days of the date of enactment, and to
report the results to Congress within one
year of initiating the study.

CRS-68
sion House Senate Comments
el Fueled Vehicles Sec. 754. The Secretary of Energy wouldSec. 722. Similar provision, except thatThe Tier 2 light-duty vehicle emissions standards
be required to accelerate research on$75 million would be authorizedwill be phased in between model years 2004 and
emissions control technologies for dieselannually for FY2006 through FY2008.2009. The heavy-duty diesel engine standards
motor vehicles. The objective of thewill be phased in beginning in 2007.
research would be to enable diesel
technology to meet, not later than 2010:
Tier 2 light-duty vehicle emission
standards; and model year 2007 heavy-
duty vehicles. No new funding would
be authorized.
nserve by Bicycling Program Sec. 755. The Department ofSec. 732. Similar provision, except that
iki/CRS-RL33006Transportation (DOT) would be directedthe cost-sharing requirement could be
g/wto conduct up to 10 pilot bicyclingmet by anynon-federal sources.”
s.orprojects to conserve energy. A minimum
leakof 20% of each project’s costs would
have to be provided by state or local
://wikisources. Also, DOT would be directed toengage the National Academy of
httpSciences to conduct a research study on
the feasibility of converting motor
vehicle trips to bicycle trips.
duction of Engine Idling ofSec. 756. EPA would be required toSec. 733. Similar provision.


y-Duty Vehicles study whether existing air emission
models accurately reflect emissions from
idling vehicles. Further, EPA would be
required to establish a program to support
the deployment of idle-reduction
technologies. A total of $95 million
would be authorized for FY2006 through
FY2008 for the deployment program.

CRS-69
sion House Senate Comments
odiesel Engine TestingSec. 757. The Secretary of Energy wouldSec. 734. Similar provision.
ogram be required to study the effects of
biodiesel and biodiesel blends on current
and future emissions control
technologies. $5 million would be
authorized annually for FY2006 through
FY2010.
gh Occupancy VehicleSec. 758. The Transportation Equity ActstNo comparable provision.Through September 30, 2003, states had the
ception for the 21 Century (TEA-21, P.L. 105-authority to exempt certain types of alternative
178) would be amended to allow states tofuel vehicles from the restrictions. However,
exempt hybrid and dedicated alternativehybrid vehicles and some alternative fuel vehicles
iki/CRS-RL33006fuel vehicles from high occupancydid not qualify. As the existing authorization has
g/wvehicle (HOV) restrictions. expired, states do not currently have the authority
s.orto exempt any type of alternative fuel vehicle from
leakHOV restrictions.
://wikiEfficient Enginechnology for Aircraft Sec. 759. The Secretary of Energy, incooperation with the NationalNo comparable provision.


httpAeronautics and Space Administration,
would be required to develop new engine
technology for aircraft with a goal of a
10% increase in fuel efficiency and a
70% decrease in nitrogen oxide
emissions during takeoff and landing. A
total of $225 million would be authorized
between FY2006 and FY2010.

CRS-70
tomobile Efficiency
sion House Senate Comments
el Economy StandardsSec. 771. Would authorize $2 millionSec. 712. Same, except $5 million
annually during FY2006-FY2010 for theannually.
National Highway Traffic Safety
Administration (NHTSA) to carry out fuel
economy rulemakings.
creased fuel economyNo comparable provision.Sec. 712. This would require the
ndardsSecretary of Transportation to issue new
CAFE standards for light-duty trucks by
iki/CRS-RL33006April 1, 2006. These would applybeginning with MY2007. Final
g/wregulations for increasing passenger
s.orautomobile fuel economy would be
leakrequired not later than 30 months after
enactment of the legislation.
://wiki
httpiteria to be taken into accountSec. 772. Would expand the criteria thatSec. 711. Would add more criteria than
g maximum feasible fuelthe agency would be required to take intothe House bill, including the extent to
omy standards.account in setting maximum feasible fuelwhich advanced technologies might
economy for cars and light trucks,achieve significant reductions in fuel
including the effects of prospectiveconsumption and the extent to which
standards on vehicle safety and automotivemeeting higher CAFE standards might
industry employment.divert resources from developing these
advanced technologies.
pedited procedures forNo comparable provision.Sec. 713. In the event that the Secretary
ngressional increase in fuelof Transportation does not promulgate
omy standards.new standards (as specified in Sec. 712),
the Senate bill would provide expedited
procedures for passage of legislation by
Congress to set new CAFE standards.



CRS-71
sion House Senate Comments
tension of maximum fuelSec. 773. Would also extend corporateSec. 714. Would also extend corporate
omy increase for alternativeaverage fuel economy (CAFE) credits thataverage fuel economy (CAFE) credits
eled vehicles.accrue to manufacturers of dual-fueledthat accrue to manufacturers of dual-
vehicles. The cap to the credit of 1.2 milesfueled vehicles. The cap to the credit of
per gallon (mpg) earned by any individual1.2 miles per gallon (mpg) earned by any
manufacturer would be extended to modelindividual manufacturer would be
year (MY) 2010. It was otherwiseextended to MY2008. The bill would
scheduled to drop to a cap of 0.9 mpgpostpone institution of the 0.9 cap until
beginning in MY2005. The bill wouldMY2009 and authorize it through
postpone institution of the 0.9 cap untilMY2012.
MY2011 and authorize it through
MY2014.
iki/CRS-RL33006
g/wudy about significantlySec. 774. Would require the National Sec. 1309. Similar to the House bill, but
s.orucing gasoline consumptionHighway Traffic Safety Administration togoal is achieving the “significant
leak model year (MY) 2012.explore the feasibility and effects ofreduction by 2012.
reducing automobile fuel consumptiona
://wikisignificant percentage” by MY2014.
httpjustment to estimated in-useSec. 775. Would require adjustment ofNo comparable provision.
el economy posted on newtested fuel economy levels so that
hicles.estimates posted on new vehicles would be
closer to experience. Adjustments would
include use of air conditioning, higher
speed limits, and faster acceleration rates.
dy of link between energyNo comparable provisionSec. 1336. Requires study by the
rity and increases in vehicleNational Academy of Sciences with a
traveled.similar objective to the study specified in
Sec. 1309, but would examine links
between and development patterns and
vehicle miles traveled (VMT), and
whether VMT and the number of vehicle



CRS-72
sion House Senate Comments
trips can be reduced by better planning,
design, development and infrastructure
decisions by state and local officials
Hydrogen
sion House Senate Comments
initionsSec. 801. Definitions offuel cell” andSec. 801. Would amend and reauthorizeSpark M. Matsunaga Hydrogen Research,
iki/CRS-RL33006other terms are provided.the Spark M. Matsunaga HydrogenResearch, Development, andDevelopment, and Demonstration Act of 1990 (42U.S.C. 12401 et seq.) authorizes hydrogen and
g/wDemonstration Act of 1990 (42 U.S.C.fuel cell research at the Department of Energy.
s.or12401 et seq.). Funding levels were authorized through FY2001,
leakalthough research is ongoing.
://wikianSec. 802. Would require the Secretary ofNo comparable provision.
httpEnergy to develop a plan for the
development of hydrogen fuel and fuel
cells.
teragency Task Force andSecs. 804 and 805. Would establish anSec. 102 (of the amended MatsunagaCurrent law established a Hydrogen Technical
visory CommitteeInteragency Task Force to coordinateAct). Would establish an InteragencyAdvisory Panel to advise the Secretary on
federal research (Sec. 804), and wouldHydrogen and Fuel Cell Technical Taskprograms under the Act. Further, the Act gives
establish a Hydrogen Technical and FuelForce to advise the Secretary on thethe Secretary the authority to consult with other
Cell Advisory Committee to advise theimplementation of the act. Would alsoagencies, but does not require the Secretary to do
Secretary and review the developmentestablish a Technical Advisoryso.


plan (Sec.805).Committee to provide technical
assistance to the Secretary and the task
fo rce.

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ternal ReviewSec. 806. DOEs plans for the hydrogenNo comparable provision.
program would be reviewed by the
National Academy of Sciences.
eous ProvisionSec. 807. The Secretary of Energy wouldNo comparable provision.
be authorized to represent U.S. interests
related to hydrogen programs
domestically and internationally in
coordination with relevant federal
agencies.
vings ClauseSec. 808. Specified authorities of theNo comparable provision.
iki/CRS-RL33006Secretary of Transportation would not be
g/waffected.
s.orthorization of AppropriationsSec. 809. A total of $4 billion would beSec. 801. A total of $3.3 billion would
leakauthorized for FY2006 through FY2010be authorized for FY2006 through
://wikifor all hydrogen and fuel cell research,development, and demonstrationFY2010 in the following areas: $1.06billion for hydrogen supply research and
httpactivities.development (Sec. 104 of the amended
Act); $0.86 billion for fuel cell research
and development (Sec. 104); $1.31
billion for demonstration programs (Sec.
202); $0.04 billion for codes and
sta nd a r d s.
lar and Wind Technologies Sec. 810. Would create program of fiveNo comparable provision.


pilot projects to demonstrate the use of
solar energy to produce hydrogen.
Further, would create a program of five
pilot projects to demonstrate the use of
wind energy to produce hydrogen. DOE
would be directed to support research

CRS-74
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programs at universities that study the
use of solar and wind energy
technologies to produce hydrogen.
drogen Fuel Cell Buses Sec. 811. The Secretary of Energy,No comparable provision.
through the Advanced Vehicle
Technologies Program, would be
required to establish four fuel cell bus
demonstration sites.
initionsNo comparable provision.Sec. 741. Provides definitions for
Sections 742 and 743.
iki/CRS-RL33006d State ProcurementNo comparable provision.Sec. 742. All federal agencies that use
g/w Fuel Cell Vehicles andlight- or heavy-duty vehicles would be
s.ordrogen Energy Systems required to lease or purchase fuel cell
leakvehicles and hydrogen energy systems.
://wikiThe Secretary of Energy would berequired to pay federal agencies the
httpincremental cost of the new systems. The
Secretary of Energy would be permitted
to establish cooperative program with
state agencies to encourage the purchase
of fuel cell vehicles. A total of $105
million would be authorized between
FY2006 and FY2008.
deral Procurement ofNo comparable provision.Sec. 743. All federal agencies that use
ary, Portable, and Microelectrical power from stationary,
el Cells portable, or microportable devices would
be required to lease or purchase
stationary, portable, or micro fuel cells.
The Secretary of Energy would be



CRS-75
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required to pay or share the cost of the
new systems. The Secretary of Energy
would be permitted to establish
cooperative program with state agencies
to encourage the purchase of fuel cell
vehicles. A total of $345 million would
be authorized between FY2006 and
FY2010.
Research and Development
iki/CRS-RL33006
g/wsion House Senate Comments
s.or
leakort Title; DefinitionsSec. 900. This title would be referred toSecs. 901-903. Same short title as House
as the “Energy Research, Development,bill. Defines departmental mission,
://wikiDemonstration, and CommercialHispanic-serving institution, nonmilitary
httpApplication Act of 2005.” Defines, forenergy laboratory, part B institution, and
the purposes of this title, the termssingle-purpose research facility. DOE
applied programs, biomass, Department,would be required to publishmeasurable
departmental mission, institution ofcost and performance-based goals for
higher education, National Laboratory,each major energy R&D area.
renewable energy, Secretary, State,
university, and user facility.
pport for Science and EnergyNo comparable provision.Sec. 963. DOE would be required to
d Infrastructuredevelop a strategy for science and energy
R&D infrastructure and describe the
strategy in the FY2007 budget request.



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fice of Science Programs Sec. 901. The programs of the Office ofNo similar provision.
Science would be authorized in general,
and DOE would be directed to commence
construction of the Rare Isotope
Accelerator no later than September 30,
2008. Expenditures on the Rare Isotope
Accelerator prior to operation would be
limited to $1.1 billion.
iki/CRS-RL33006stems Biology Programouse) / Genomes to LifeSec. 902. DOE would be directed toestablish a program of research,Sec. 968. DOE would be directed tocarry out a program of research,
g/wogram (Senate) development, and demonstration indevelopment, demonstration, and
s.orgenetics, protein science, andcommercial application in microbial and
leakcomputational biology, with specifiedplant systems biology, protein science,
goals. DOE would have to submit aand computational biology, with
://wikiresearch plan for this program tospecified goals, to be known as the
httpCongress within one year and contractGenomes to Life Program.” DOE
with the National Academy of Scienceswould have to prepare a program plan
to review the plan within an additional 18and update its short-term goals each year
months. Biomedical research andtogether with the annual budget
research related to humans would not besubmission.
permitted as part of the program.
talysis Research andSec. 903. DOE would be directed toSec. 964. Similar to the House provision.
velopment Program conduct a program of R&D in catalysisProgram content would be specified in
science.more detail. In addition, a triennial
assessment of the program by the
National Academy of Sciences would be
requir ed.



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drogen Sec. 904. DOE would be directed toSec. 965. In addition to the House
conduct a program of fundamental R&Dlanguage, the hydrogen program would
in support of the hydrogen programsbe required to include support for
authorized in Title VIII.generating hydrogen without the use of
natural gas.
lid State Lighting No similar provision.Sec. 966. DOE would be directed to
conduct a program of research on
advanced solid state lighting in support
of the initiative established by Sec. 912.
vanced Scientific ComputingSec. 905. DOE would be directed toSec. 967. Similar to the House provision,
iki/CRS-RL33006search conduct a program of R&D in advancedwith the addition of advanced
g/wscientific computing, including appliedmathematics and the activities authorizedvisualization techniques as one of thegoals of the program. In addition, Sec.
s.orby the Department of Energy High-End203 of the High-Performance Computing
leakComputing Revitalization Act of 2004Act of 1991 (15 U.S.C. 5523) would be
://wiki(P.L. 108-423).amended as follows: DOE’s generalresponsibilities as part of the interagency
httpNational High-Performance Computing
Program would be modified; DOE would
no longer be required, as part of that
program, to establish consortia, engage in
technology transfer, or submit an annual
report (but these activities would not be
prohibited); and the authorization of
appropriations for the program for fiscal
years already completed would be
replaced by a general authorization of
such sums as are necessary.”



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sion Energy SciencesSec. 906. Research, development,Sec. 962. Similar to the House provision. The United States withdrew from the design phase
ogram demonstration, and commercialIn addition, DOE would be directed toof ITER in 1998 at congressional direction,
application directed at competitiveness ininclude in the fusion policy plan, to thelargely because of concerns about cost and scope.
fusion energy, including a demonstrationextent possible, the recommendations onThe project has since been restructured, and in
of the utilization of fusion energy toworkforce planning that were made inJanuary 2003, the Administration announced its
produce electric power or hydrogen,March 2004 by DOEs Fusion Energyintention to reenter the project. Other international
would be declared to be U.S. policy.Sciences Advisory Committee. partners include the European Union, Japan,
DOE would be directed to submit a planRussia, China, and South Korea. A site in France
to carry out that policy. Authority wouldwas officially selected on June 28, 2005.
be given for the United States to
participate in the international fusion
energy experiment known as ITER
iki/CRS-RL33006(International Thermonuclear
g/wExperimental Reactor). DOE would be
s.ordirected to develop a plan for ITER
leakparticipation and have it reviewed by the
National Academy of Sciences. Funds
://wikicould not be expended for ITER
httpconstruction until the plan and other
reports were provided to Congress. If
construction of ITER appeared unlikely,
DOE would be directed to submit a plan
for a domestic burning plasma
experiment.
ssion and Fusion EnergyNo similar provision.Sec. 969. DOE would be directed to
Research Program establish a program of R&D on materials
science for advanced fission reactors and
DOEs fusion energy program.



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ergy-Water SupplyNo similar provision.Sec. 970. A program would be
chnologies Program established, within the Biological and
Environmental Research program of the
DOE Office of Science, to study energy-
related issues associated with water
supply and water supply issues related to
energy production. Arsenic removal,
desalination, and water resource
sustainability would be among the areas
to be investigated. Research projects
under this section would not require cost-
sharing, despite Sec. 1002 (see below),
iki/CRS-RL33006but demonstration projects would.
g/w
s.orallation Neutron Source No similar provision.Sec. 971. DOE would be directed toConstruction of the Spallation Neutron Source, a
leaksubmit to Congress an annual progressresearch facility at Oak Ridge National
report on the Spallation Neutron SourceLaboratory, is expected to be completed during
://wikiand develop an operational plan for thefacility that meets specified requirements. FY2006.
httpAppropriations would be authorized for
the lifetime of the project overall and for
certain related items in FY2006, FY2007,
and FY2008.
ce and TechnologySec. 907. DOE would be authorized toNo similar provision.


holarship Program establish a scholarship program to help
recruit and prepare students for careers in
DOE. Scholarship recipients would be
required to work for DOE for 24 months
per academic year of scholarship
received.

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orkforce Trends andNo comparable section.Sec. 1101. Would require Secretary
aineeship Grants report to Congress, within 1 year, on
current trends under trends in the
workforce in skilled technical personnel
that support energy technology
industries; and electric power and
transmission engineers; and establish
grant programs to enhance training for
any workforce category for which a
shortage is identified or predicted.
ergy Research FellowshipsNo comparable section.Sec. 1102. Would establish a
iki/CRS-RL33006Postdoctoral Fellowship Program to
g/wencourage outstanding young scientists
s.orand engineers to pursue postdoctoral
leakresearch appointments in energy research
and development at institutions of higher
://wikieducation of their choice.
httpucational Programs inNo comparable section.Sec. 1103. Would amend the Department
ce and Mathematics of Energy Science Education
Enhancement Act (42 U.S.C. 7381a) by
requiring the Energy Secretary to use not
less than 0.2 percent of the amount made
available to DOE for fiscal year 2006 and
each fiscal year thereafter to carry out
authorized activities. The section would
also amend 42 U.S.C. 7381b by adding
provisions for competitive events for
students, competitively-awarded, peer-
reviewed programs to promote
professional development for math and
science teachers, summer internships for



CRS-81
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teachers. The Energy Secretary would
enter into an arrangement with the
National Academy of Public
Administration to conduct a study of the
priorities, quality, local and regional
flexibility, and plans for educational
programs at Department research and
development facilities.
proved Access to Energy-No comparable section.Sec. 1106. Would amend the Department
Scientific and Technicalof Energy Science Education
reers. Enhancement Act (42 U.S.C. 7381a) by
iki/CRS-RL33006adding at the end the following:
g/wPrograms for Students from Under-
s.orrepresented Groups; and Partnerships
leakwith Historically Black Colleges and
Universities, Hispanic- Serving
://wikiInstitutions, and Tribal Colleges.
httpfice of Scientific andSec. 908. DOE would be directed toNo similar provision.
nical Information maintain the Office of Scientific and
Technical Information.
ce and Engineering PilotSec. 909. DOE would be directed toNo similar provision.


ogram award a grant to Oak Ridge Associated
Universities to establish a regional pilot
program to enhance scientific,
technological, engineering, and
mathematical literacy, creativity, and
decisionmaking. The program would
involve research universities, universities

CRS-82
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that train elementary and secondary
school teachers, and DOE national
laboratories. A report would be required
on lessons learned from the pilot
program, including a plan for expanding
the program nationwide.
thorization of Appropriations Sec. 910. Appropriations would beSec. 961. Appropriations would beSee also Senate Secs. 967 and 971 above
authorized for the Office of Science forauthorized for the Office of Science forregarding authorization of appropriations for the
FY2006 through FY2010, with increasesFY2006 through FY2008, at levelsAdvanced Scientific Computing Research
of 10%-15% per year. Within thesesomewhat higher than in the House bill. program and the Spallation Neutron Source
totals, appropriations would beWithin these totals, appropriations wouldfacility, both of which are in the Office of
iki/CRS-RL33006authorized for the individual programsbe authorized for the individual programsScience.
g/wdescribed in Secs. 902, 905, 906 (exceptdescribed in Secs. 962, 964, 968, and
s.orITER), 907, 908, and 909.970.
leakAppropriations for construction of ITER
would be authorized separately, as would
://wikiappropriations for integrated bioenergyR&D for FY2005 through FY2009.
http
dministration and Operations
sion House Senate Comments
st Sharing Sec. 911. Cost sharing would be requiredSec. 1002. Cost sharing would be
for programs carried out under this title.required activities under this title. Not
The minimum non-federal share wouldless than 20 % of the cost R&D activity
be 20% for R&D programs and 50% forwould provided by a non-Federal source,
demonstration and commercialand 50% for demonstration or
application programs, but DOE couldcommercial application activity. DOE
lower or waive these requirements incould reduce the non-Federal share in



CRS-83
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certain circumstances.consideration of any technological risk.
This section would not apply to a
cooperative R&D agreement under the
Stevenson-Wydler Technology
Innovation Act.
programming Sec. 912. Within 60 days after anyNo comparable section.
appropriation authorized under this title,
DOE would be required to report to
Congress on how the appropriated
amounts would be distributed.
Subsequent reprogramming would be
iki/CRS-RL33006limited to the lesser of 2% or $2 million
g/wunless reported to Congress with at least
s.or30 days notice.
leakit-Based Competition Sec. 913. Awards of funds authorizedSec. 1003. Awards of funds authorized
://wikiunder this title would be permitted onlythrough open competitions following anunder this title would be made only afteran impartial review of the scientific and
httpimpartial review of scientific andtechnical merit.
technical merit.
ternal Technical Review ofSec. 914. Advisory committees would beSec. 1004. Advisory boards would be
partmental Programs established for DOE programs in energyestablished to review DOE research,
efficiency, renewable energy, nucleardevelopment, demonstration, and
energy, and fossil energy. Thecommercial application programs. The
requirement could be met by existingscientific program advisory committees
DOE committees. Existing advisorychartered under the Federal Advisory
committees would continue for theCommittee Act would continue to used
programs of the Office of Science, andby the Office of Science to oversee
the chairs of the Office of Scienceresearch and development programs
committees would constitute a Scienceunder that Office. DOE would also enter
Advisory Committee for the Director ofinto arrangements with the National



CRS-84
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the Office. DOE would be directed toAcademy of Sciences to conduct periodic
arrange with the National Academy ofreviews and assessments of the
Sciences to review and assess theauthorized programs. The Secretary of
programs authorized by this title, andEnergy would report to Congress
reports on the results of these reviewsdescribing the results of all the reviews
and assessments would be due toand assessments.
Congress within two years of enactment.
mpetitive Award ofSec. 915. Management and operatingNo comparable section.In the past, management contracts at most DOE
anagement Contracts contracts for DOE national laboratorieslaboratories have been extended without
(except Livermore, Los Alamos, Sandia,competition. In some cases, laboratories have been
and Savannah River) would have to bemanaged by the same contractor for 60 years or
iki/CRS-RL33006awarded competitively unless themore. In November 2003, DOE released the report
g/wSecretary of Energy granted a waiver onof a blue-ribbon commission that it established to
s.ora case-by-case basis. The Secretaryexamine this issue. The commissions report is
leakwould not be permitted to delegate hisavailable online at [http://www.seab.doe.gov/
waiver authority and would have topublications/brcDraftRpt.pdf]. It states that “the
://wikinotify Congress at least 60 days beforeawarding a non-competitive contract.issue of whether competition should be routinelyused for research and development laboratories is
httpsubject to wide and varied opinions.
nal LaboratorySec. 916. DOE would be prohibited fromNo comparable section.
signation designating additional facilities as
national laboratories, beyond those
defined in Sec. 900.
port on Equal EmploymentSec. 917. DOE would be required toNo comparable section.


unity Practices report to Congress with one year and
every two years thereafter on equal
employment opportunity practices at the
national laboratories.

CRS-85
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Facility Best Practices Plan Sec. 918. No DOE facility would beNo comparable section.DOE user facilities are available to outside
permitted to begin operating as a userresearchers.
facility unless DOE had developed and
transmitted to Congress a plan for
staffing the facility, allocating time fairly
to its users, and operating it in a safe and
fiscally prudent manner.
pport for Science and EnergySec. 919. DOE would be directed toNo comparable section.
frastructure and Facilities develop and implement a strategy for
maintaining existing facilities and
infrastructure, closing unnecessary
iki/CRS-RL33006facilities, modifying facilities, and
g/wbuilding new facilities. A report to
s.orCongress would be required by June 1,
leak2007, summarizing the strategy.
://wikination Plan Sec. 920. DOE would be directed todevelop a plan to improve coordinationNo comparable section.


httpand collaboration in research,
development, demonstration, and
commercial application activities across
DOE organizational boundaries. A
conference of program managers from
the Office of Science and the applied
programs would be convened as part of
the process of developing this plan. DOE
would be required to transmit the plan to
Congress within nine months and
transmit a revised version every two
years thereafter.

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proved Technology TransferNo comparable section.Sec. 1005. A Technology Transfer
Energy TechnologiesCoordinator would be appointed as
principal advisor on all matters relating
to technology transfer and
commercialization. A Technology
Transfer Working Group, would be
established consisting of representatives
of the National Laboratories and research
facilities. An Energy Technology
Commercialization Fund, using 0.5% of
the amount made available to DOE for
each fiscal year, would be used to
iki/CRS-RL33006provide matching funds with private
g/wpartners to promote promising
s.ortechnologies for commercial purposes.
leakNot later than 180 days after enactment
of this title, the Energy Secretary would
://wikireport to Congress on a technology
httptransfer execution plan, with updates
yearly.
nology infrastructureNo comparable section.Sec. 1006. DOE would establish a new
ramprogram to improve the ability of
National Laboratories and research
facilities to support the Energy
Departments missions by stimulating
the development of technology clusters;
improving National
Laboratories/facilities abilities to benefit
from commercial research, technology,
products, processes, and services; and
encourage the exchange between
National Laboratories/facilities and non-



CRS-87
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federal entities. The Secretary would
report on the program by July 1, 2008.
proved coordination andNo comparable section.Sec. 1010. Would add an Under
nagement of civilian scienceSecretary for Energy and Science who
d technology programswould monitor the research and
development programs of the
Department, reconfigure the position of
Director of the Office of Science to an
Assistant Secretary level, and an
additional Assistant Secretary position to
enable improved management of nuclear
iki/CRS-RL33006energy issues.
g/wailability of Funds Sec. 921. Funds authorized under thisSec. 1001. Funds authorized would
s.ortitle would remain available for threeremain available until expended.
leakyears.
://wikinship to Other Laws.No comparable section.Sec. 1009. The research, development,
httpdemonstration, and commercial
application programs, projects, and
activities authorized by this Act would be
conducted according to applicable
provisions of the Atomic Energy Act;
the Federal Nonnuclear Energy Research
and Development Act; the Energy Policy
Act; the Stevenson-Wydler Technology
Innovation Act,and the “Bayh-Dole Act.”
izes for Achievement inNo comparable section.Sec. 1012. Would authorize a program to
and Challenges of Scienceaward cash prizes in recognition of
d Technology.breakthrough achievements in research,
development, demonstration, and



CRS-88
sion House Senate Comments
commercial application that have the
potential for application to the
performance of the mission of the
Dep a rtme nt.
nical Corrections.No comparable section.Sec. 1013. Would amend language in the
Coal Research and Development Act of
1960, and the Federal Nonnuclear Energy
Research and Development Act of 1974
to reflect update terms and titles.
iki/CRS-RL33006gy Efficiency — Vehicles, Buildings, and Industries
g/w
s.or
leaksion House Senate Comments
://wikiograms Sec. 922. General objectives would beNo similar provision.
httpset for DOE energy efficiency programsin terms of energy security, reduced
costs, and environmental impacts. A
report would be required to provide cost
and performance baselines and set
quantitative targets for energy and cost
savings over five fiscal years.
ergy Efficiency ScienceNo similar provision.Sec. 915. DOE would be required to
itiative establish an energy efficiency research
program, with grants to be competitively
awarded and subject to peer review. A
report to Congress would be required that
is included in the Presidents annual



CRS-89
sion House Senate Comments
budget request and describes the process
used to award funds.
icles Sec. 923. DOE would be directed toNo similar provision.
conduct a research, development,
demonstration, and commercial
application (RDD&C) program for
hybrid and electric vehicles, advanced
engines, advanced materials, and
advanced drivetrains. Also, a hydrogen
propulsion and infrastructure RDD&C
program would be established.
iki/CRS-RL33006
g/wildings Sec. 924 (a) and (b). This provisionwould direct DOE to conduct an RDD&CNo similar provision.
s.orprogram to improve the energy efficiency
leakand environmental performance of
://wikicommercial, industrial, institutional, andresidential buildings. This program is to
httpinclude advanced controls, building
envelope, building components (e.g.
lighting, appliances), and onsite
renewable energy use. Also, a pilot grant
program would be created to help
businesses and organizations demonstrate
energy efficiency technologies for
buildings. It would provide up to 50% of
design and energy modeling costs, with a
maximum of $50,000.
h Performance BuildingSec. 924 (c). DOE would be directed toSec. 916. Same provision, except that the
ards work with the National Institute oftechnical assistance and grants program
Building Sciences to prepare a report thatwould be required to comply with the



CRS-90
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assesses the effectiveness of voluntaryNational Technology Transfer and
building energy performance standards. Advancement Act of 1995 and
After receiving the report, DOE would beamendments thereto.
required to establish a program of
technical assistance and grants to support
revisions of existing standards.
nal Building PerformanceNo similar provision.Sec. 913. Would direct the Department
itiative of Commerce, in coordination with DOE,
to establish an interagency task group
that would create a plan to integrate work
among federal, state, and voluntary
iki/CRS-RL33006organizations to improve the energy
g/wefficiency performance of buildings. A
s.orreport to Congress on the findings of the
leakplan would be required.
://wikitional Center for Energyanagement and BuildingNo similar provision.Sec. 1105. Would direct DOE to supportongoing activities of the Center in
httpchnologiesresearch, education, and training focused
on energy efficiency for buildings.
dustries Sec. 925. Would direct DOE to conductNo similar provision.


an RDD&C program to improve the
energy efficiency, environmental
performance, and process efficiency of
energy-intensive and waste-intensive
industries. This program would include
RDD&C on advanced control devices to
improve the efficiency of electric motors,
including those used in industrial
settings.

CRS-91
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onstration and CommercialSec. 926. DOE would be directed toNo similar provision.
plication consider applying more efficient
technologies to improve the energy
efficiency of equipment and test
procedures used to measure appliance
energy efficiency. Further, DOE would
be required to coordinate with public and
private organizations to study means of
updating building energy codes. Also, a
DOE grant program (50% federal match)
would be established to support state and
local governments, universities, and
iki/CRS-RL33006nonprofit organizations to create a
g/wnetwork of Advanced Energy
s.orTechnology Transfer Centers.
leakAdditionally, this section would require
that a periodic report to Congress be
://wikiprepared on activities generated by the
httpforegoing provisions.
dary Electric VehicleSec. 927. A program would beSec. 914. Same provision, except that
tery Use Program established at DOE for RDD&C onproject proposers would be required to
applications for worn out electric vehiclesatisfy a 20% cost share set by Section
batteries for utility and commercial1002, which also allows the Secretary of
power storage and power quality. A 50%DOE to waive the requirement under
cost share by the project proposer (e.g.certain conditions.
state or local government, manufacturer)
would be required.
xt Generation LightingSec. 928. A DOE program would beSec. 912. Same provision.


itiative created that aims to develop advanced
white light-emitting diodes (LEDs) for
high efficiency lighting. These LEDs are

CRS-92
sion House Senate Comments
expected to be more efficient than
incandescent and fluorescent lights.
Also, DOE would be directed to arrange
for the National Academy of Sciences to
conduct periodic reviews of the initiative.
initions Sec. 929. Would define the phrasecost-No similar provision.
effective” in terms of simple payback
within 10 years and definewhole-
buildings approach” in terms of a life-
cycle basis for energy use and costs.
iki/CRS-RL33006thorization of Appropriations Sec. 930. For the preceding sections ofSec. 911 (a), (b), (c). For the other
g/wSubtitle C, this provision would set outauthorization figures for FY2006 throughsections of Subtitle A, this provisionwould set out authorization figures for
s.orFY2010. FY2006 through FY2008.
leak
://wikimitation on Use of Funds Sec. 931. This section would prohibit theuse of funds authorized by Sec. 930 forSec. 911(d). This section would prohibitthe use of funds authorized by Sec. 911
httpenergy efficiency regulations and for(a), (b), (c) for energy efficiency
DOE’s Weatherization, State Energy, andregulations and for DOE’s
Federal Energy Management Programs.Weatherization, State Energy, and
Federal Energy Management Programs.
Efficiency — Distributed Energy and Electric Energy Systems
sion House Senate Comments
stributed Energy Sec. 932(a), (c). Would authorize a DOE No similar provision.


RDD&C program for a variety of
technologies that include the integration

CRS-93
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of renewable energy, fuel cells, combined
heat and power (CHP), microturbines,
and other equipment. Also, DOE would
be directed to report to Congress on
outcome measures that cover five-year
cost and energy-saving performance
b a selines.
stributed Energy TechnologyNo similar provision.Sec. 924. Would require DOE to provide
onstration Program financial assistance to consortia for
demonstrations to accelerate the use of
distributed energy technologies.
iki/CRS-RL33006
g/wicro-Cogeneration Sec. 932(b). Would direct DOE toestablish competitive, merit-based grantsSec. 923. Same provision.
s.orto consortia to develop micro-
leakcogeneration technology, including
://wikisystems that could be used for residentialheating.
http
Transmission andSec. 933. Would authorize a DOESec. 925. Would authorize a DOE
stribution and EnergyRDD&C program addressing energyRDD&C program addressing efficiency,
ance efficiency, reliability, and security of thereliability, and environmental integrity.
nations electric transmission andA technology development program
distribution system. A technologywould have the same features as that in
development program would focus onthe House bill. DOE would be directed
delivery and storage, grid reliability, loadto devise a five-year plan and consider
reduction, high temperature supercon-using a consortium with industry,
ductivity, and others. Further, a report university, and national laboratory
to Congress would be required, whichmembers to implement the program. A
covers outcome measures with five-yearreport to Congress would be required that
cost and energy-saving performancedescribes progress and identifies needs
baselines. A university grant programfor additional resources. Also, the



CRS-94
sion House Senate Comments
would be created that works with theprovision would establish a Power
Tennessee Valley Authority on aDelivery Research Initiative focused on
program to improve power flow throughsuperconductivity and a Transmission
high voltage transmission lines.and Distribution Grid Planning Initiative
focused on software tools to expand
T&D in a competitive market setting.
vanced Portable PowerSec. 933A. DOE would be directed toNo similar provision.
ices establish an RDD&C program for small-
scale mechanical and electromechanical
devices that can be used for
communications, mobility enhancement,
iki/CRS-RL33006medical needs, and other purposes.
g/wFurther, the provision would direct DOE
s.orto utilize the resources of universities that
leakhave demonstrated capability to develop
these devices for civilian or military use.
://wikigh Power Density IndustryNo similar provision.Sec. 922. This provision would direct
httpogram DOE to establish an RDD&C program to
improve the energy efficiency of data
centers, computer server farms, and
telecommunications facilities.
thorization of Appropriations Sec. 934. For the programs in SectionsSec. 921. Would authorize
932, 933, and 933A, would authorizeappropriations for distributed energy,
appropriations for FY2006 through2006 through 2008; for power delivery
FY2010.research, 2006 through 2008; and for
micro-cogeneration, 2006 through 2007.



CRS-95
able Energy
sion House Senate Comments
ndings Sec. 935. One finding would be thatNo similar provision.
renewable energy is a growth industry in
which the United States is losing market
share. Two other key findings would be
that the United States is increasingly
dependent on imported energy and that
the high cost of fossil fuels hurts the
economy. Further findings would
include that renewable energy can reduce
iki/CRS-RL33006demand for imported energy and smallreductions in demand can yield large
g/wreductions in price.
s.or
leakinitions Sec. 936.Biobased product” would beNo similar provision.
defined as a commercial or industrial
://wikiproduct (other than food or feed) that is
httpcomposed mainly of agricultural or
forestry materials.Cellulosic biomass”
would be defined as a crop grown to
produce lignocellulose or hemicellulose
as a feedstock. This could include barley
grain, rice matter, soybean matter,
bagasse, forest thinnings, or other
ma t e r i a l s .
ograms Sec. 937. DOE would be directed toNo similar provision.


conduct a renewable energy RDD&C
program with goals that include
improving energy security, reducing
costs, decreasing environmental impacts,
and increasing equipment exports.

CRS-96
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Further, a report to Congress would be
required, which covers outcome
measures with five-year cost and energy-
saving performance baselines.
lar Sec. 938. DOE would be required toSec. 934. DOE would be authorized to
conduct an RDD&C program for solarconduct a research program on
energy, including photovoltaics, solar hotconcentrating solar power to establish the
water, solar space heating, andtechnology and economics of both
concentrating solar power. Also, DOEelectricity and hydrogen production. A
would be required to include efforts toreport to Congress would be required,
develop products that could be easilywhich recommends future research.
iki/CRS-RL33006integrated into new and existingSec. 935. DOE would be authorized to
g/wbuildings and manufacturing techniquesconduct research on novel lighting
s.orthat could produce low-cost, high qualitysystems that integrate sunlight and
leakequipment.electrical lighting in common lighting
fixtures to increase energy efficiency. A
://wikireport by the National Academy ofSciences would be required.
http
oenergy Programs Sec. 939. DOE would be directed toSec. 932. DOE would be directed to
conduct programs on cellulosic biomass,conduct a broad program of RDD&C in
biofuels, bio-based products, integratedbiopower, biofuels and bioproducts,
biorefineries, and university biodieselincluding technologies using cellulosic
fuel use for electric power. Also, grantsfeedstocks or enzyme-based processing.
would be established to support these
programs at Historically Black Colleges
and Universities, Tribal Colleges, and
Hispanic-Serving Institutions.
oduction Incentives forNo similar provision.Sec. 938. Would have goals to accelerate
losic Biofuels deployment and commercialization of
biofuels, produce the first one billion



CRS-97
sion House Senate Comments
gallons of cellulosic biofuels by 2015,
and ensure that biofuels become cost
competitive by 2015. The primary
strategy would be for DOE to conduct a
reverse auction,” wherein bidders
submit a desired level of incentive and
estimated annual production and then
DOE makes awards to the entities
submitting the lowest level of production
incentive. No single project would
receive more than 25% of the funds
committed to each auction.
iki/CRS-RL33006
g/wrement of BiobasedNo similar provision.Sec. 939. Would amend the Farm
s.orcts Security Act of 2002 (P..L. 107-171) to
leakadd the Capitol Complex to the list of
federal entities required to purchase
://wikibiobased products.
httpall Business BioproductNo similar provision.Sec. 940. Would require the Secretary of
keting and CertificationAgriculture to create a competitive grant
ts. program to support certification and
marketing of biobased products by small
firms. The grants would require a 50%
match and would not exceed $100,000.
gional BioeconomyNo similar provision.Sec. 941. Would require the Secretary of
elopment Grants Agriculture to create competitive grants
to a regional bioeconomy development
association, agricultural or energy trade
association, or Land Grant institution to
support coordination, education, and/or
outreach to promote development of a



CRS-98
sion House Senate Comments
regional bioeconomy for biobased
products. The grants would require a
50% match and would not exceed
$500,000.
eprocessing and HarvestingNo similar provision.Sec. 942. This provision would require
onstration Grants. the Secretary of Agriculture to create a
competitive grant program to support
agricultural producers in demonstrating
cellulosic biomass innovations that
produce ethanol, heat, electricity or other
useful forms of energy. The grants
iki/CRS-RL33006would require a 20% match and the
g/wnumber of demonstration projects would
s.orlimited to five per year.
leakcation and Outreach No similar provision.Sec. 943. Would require the Secretary of
://wikiAgriculture to establish a program ofeducation and outreach on biobased fuels
httpand biobased products that includes
training and technical assistance for
feedstock producers and public education
and outreach for consumers.
ports No similar provision.Sec. 944. Would require the Secretary of
Agriculture to report to Congress on the
economic potential for widespread
production of biobased products through
2025. Further, an analysis of economic
indicators of the biobased economy
would also be required.



CRS-99
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nd Sec. 940. Would authorize the windNo similar provision.
energy RDD&C program at DOE.
Covered activities would include low-
speed wind, offshore wind, testing and
verification, and distributed wind energy
ge ne r a t i o n.
thermal Sec. 941. Would authorize theNo similar provision.
geothermal energy RDD&C program at
DOE. The program would focus on
resource detection, decreasing drilling
and maintenance costs, mineral
iki/CRS-RL33006production, and reservoir management.
g/wotovoltaic DemonstrationSec. 942. DOE would be required toNo similar provision.
s.orogram make grants to states to support solar
leakphotovoltaic demonstration projects,
://wikiproviding up to 40% of a projects costs(maximum $1 million). Also, DOE
httpwould be required to report to Congress
on program costs and the amount of
capacity installed.
ditional Programs Sec. 943. DOE would be empowered toSec. 936. DOE would be authorized to
conduct programs on ocean and waveconduct programs on ocean energy
energy, and combinations of renewable(including wave energy), on
energy technologies with one another andcombinations of renewable energy
with other energy technologies. Also,technologies with one another and with
DOE would be required to arrange withother energy technologies, and on
the National Academy of Sciences torenewable energy technologies for
conduct a study on renewable energycogeneration of hydrogen and electricity.


generation from the ocean, including
energy from waves, tides, and currents,

CRS-100
sion House Senate Comments
and from the variation in water
temperature with ocean depth (ocean
thermal energy). Additionally, DOE
would be required to conduct an
innovative program to put renewable
energy equipment in state and local
buildings, providing up to 40% of a
project’s incremental costs.
alysis and Evaluation Sec. 944. DOE would be required toNo similar provision.
conduct analysis and evaluation in
support of the programs under this
iki/CRS-RL33006subtitle. Up to 1% of the funds for this
g/wsubtitle could be designated for these
s.oractivities, including economic and
leaktechnical analysis of renewable energy
resources and potential and analysis of
://wikipast performance in terms of technicaladvances and market penetration.
http
thorization of Appropriations Sec. 945. Funding for DOE renewableSec. 931. Funding for DOE renewable
energy programs would be authorized forenergy, bioenergy, and concentrating
five fiscal years. Also, specificsolar power programs would be
authorizations would be provided forauthorized for three fiscal years.
bioenergy, concentrating solar power,
and public buildings. Funding for
Renewable Support and Implementation
would be excluded.
drogen Intermediate FuelsNo comparable provision.Sec. 933. The Secretary of Energy, in
ogram coordination with the Secretary of
Agriculture, would be required to
demonstrate the conversion of ethanol or



CRS-101
sion House Senate Comments
other renewable fuels into hydrogen for
transportation applications. A total of $5
million would be authorized for the
program.
sion House Senate Comments
inition of Junior Faculty Sec. 946. For the purpose of receivingNo provision.
iki/CRS-RL33006grants under Section 949, junior faculty
g/wmembers would be defined as having
s.orheld doctorates less than 10 years.
leak
clear Energy Programs Sec. 947. DOE would be required toSec. 946. DOE would be required to
://wikiconduct nuclear energy research,carry out existing nuclear R&D programs
httpdevelopment, demonstration, andcommercial application programs,on advanced nuclear concepts,improvements in existing reactors,
including DOE nuclear R&Ddeployment of advanced versions of
infrastructure support. Annualtodays commercial reactors (“Nuclear
performance reports on the programsPower 2010”), advanced reactor
must be submitted to Congress. technologies (Generation IV), and
nuclear hydrogen production. A strategy
for managing nuclear research facilities
and infrastructure would also be
mand ated.
vanced Fuel RecyclingSec. 948. DOE would be required toSec. 947. Similar provisions.DOE is currently implementing the Advanced
ogram conduct a program on advancedFuel Cycle Initiative without a specific funding
technologies for the reprocessing of spentauthorization. Spent fuel recycling or reprocessing
nuclear fuel. The technologies should beinvolves the extraction of plutonium and uranium



CRS-102
sion House Senate Comments
resistant to nuclear weapons proliferationfrom spent nuclear fuel for use in new fuel.
and support alternative spent fuelSupporters contend that it could extend domestic
disposal strategies and advanced reactorenergy supplies and reduce the hazard posed by
concepts. nuclear waste, while opponents are concerned that
the extracted plutonium could be used for
weapons.
iversity Nuclear Science andSec. 949. DOE would be required toSec. 948. Similar provisions, plus aThis section would add new statutory
gineering Support support human resources and infrastructurefellowship and visiting scientist programrequirements to the existing DOE University
in nuclear science and engineering andsimilar to House Sec. 950.Reactor Fuel Assistance and Support Program.
related fields. The program would include
fellowship and faculty assistance programs
iki/CRS-RL33006and support for fundamental and
g/wcollaborative research. The program
s.orwould also be authorized to help convert
leakresearch reactors to low-enriched fuels,
support training in reactor relicensing and
://wikiupgrading, and provide funding forresearch reactor improvements. DOE
httpfunding for research projects could be used
for some of the operating costs of research
reactors used in those projects.
iversity-National LaboratorySec. 950. DOE would be required toIncluded in Sec. 948.


teractions conduct a nuclear science and technology
fellowship program for university
professors to spend sabbaticals at
National Laboratories and a visiting
scientist program to allow National
Laboratory staff to spend time in
university nuclear departments.

CRS-103
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clear Power 2010 Program Sec. 951. DOE would be required toIncluded in Sec. 946.
carry out the existing Nuclear Power
2010 Program to encourage deployment
of new commercial reactors as soon as
feasib le.
eration IV Nuclear EnergySec. 952. DOE would be required toIncluded in Sec. 946.
stems Initiative carry out the existing Generation IV
Nuclear Energy Systems Initiative, which
supports development of advanced
concepts that could replace existing
commercial reactor technology. The
iki/CRS-RL33006program would have to include
g/wproliferation-resistant advanced reactor
s.ordesigns that, in comparison with existing
leakreactors, would have higher efficiency,
lower cost, improved safety, and lower
://wikirates of high-level waste production.
httpfrastructure and Facilities Sec. 953. DOE would be required toIncluded in Sec. 946.
operate and maintain infrastructure and
facilities for nuclear energy programs.
clear Energy Research andSec. 954. DOE would have to develop anNo inventory requirement, but Sec. 946
elopment Infrastructure Planinventory of nuclear energy infrastructurerequires a strategy formaking facility
and a priority list of neededupgrades and modifications.”
improvements.
o National LaboratorySec. 955. A comprehensive plan wouldNo specific mention of Idaho National
lanbe required for the facilities at IdahoLaboratory, but Sec. 946 mandates a
National Laboratory, which DOE hasstrategy for facilities of the Office of
designated as its lead laboratory forNuclear Energy, Science, and
nuclear energy programs.Technology, which operates the lab.



CRS-104
sion House Senate Comments
thorization of Appropriations Sec. 956. Funding for DOE nuclearSec. 945. Funding for DOE nuclear
energy programs in Sections 948-955 areresearch programs would be authorized
authorized for FY2006-2010.for FY2006-FY2008. None of the funds
could be used for decommissioning the
Fast Flux Test Facility at Hanford,
W a shi ngt o n.
t Generation Nuclear Plant Sec. 957-961. DOE would be required toNo provision in the R&D title (seeThis project is similar to the hydrogen production
design, build, and operate an advancedcomment).reactor authorized for construction at Idaho
technology nuclear reactor by 2015. ForNational Laboratory by Secs. 651-652 of the
development and design of the reactor,House bill and Secs. 631-635 of the Senate bill.
$150 million per year would be(The project authorized in the Senate bill is also
iki/CRS-RL33006authorized for FY2006-FY2010. Forcalled the “Next Generation Nuclear Plant.”)
g/wconstruction, $500 million would beHowever, the project authorized by these sections
s.orauthorized, and such sums as necessaryof the House bill would not have to produce
leakwould be authorized for operation. hydrogen or be built at Idaho National Laboratory.
://wikirity of Nuclear FacilitiesNo provision.Sec. 949. DOE would be required toconduct research on technologies for
httpincreasing nuclear plant security and
protecting nuclear facilities from natural
d i sa ste r s.
natives to IndustrialNo provision.Sec. 950. DOE would be required toRadioactive sources have been widely cited as a
dioactive Sourcesstudy industrial applications of largepotential source ofdirty bomb material, so
radioactive sources and establish adevelopment of alternative technologies could
research program to develop alternatives.provide security benefits.



CRS-105
— Research Programs
sion House Senate Comments
nced Fossil EnergySec. 962. Specified priority programsNo similar provision.
search and Developmentwould be spelled out to improve the
ograms efficiency, effectiveness and
environmental performance of fossil
energy production, upgrading,
conversion, and consumption.
sil Research andSec. 963. The objective of the FossilNo similar provision.
iki/CRS-RL33006velopment R&D program would be to reduceemissions from fossil fuel use such as
g/wmercury, fine particles, smog, and
s.orcarbon dioxide using technologies
leakincluding pre-combustion technologies.
://wikid Gas Research andSec. 964. Research programs would beSec. 952. Similar provision except a
httpvelopment focused on assisting small domesticreport on natural gas and oil deposits in
producers of oil and gas, the extraction offederal and state waters would be
methane hydrates, improving otherconducted by the Secretary of the Interior
extraction technologies, and reducing theand submitted to Congress every 2 years.
costs of acquiring unconventional fuels.Also, an national center of excellence in
clean energy and power generation
would be established.
ansportation Fuels Sec. 965. The Secretary would conductNo similar provision.


R&D projects on the commercialization
of coal and natural gas to transportation
fuel and indirect liquefaction of coal and
biomass.

CRS-106
sion House Senate Comments
el Cells Sec. 966. The Secretary would conductNo similar provision.
R&D on fuel cell commercialization
including fuel cell proton exchange
membrane technology.
rbon Dioxide CaptureSec. 967. The Secretary would support aSec. 957. Similar provision.
search and Development 10-year R&D program aimed at
developing carbon dioxide capture
technologies for pulverized coal
combustion units. The program would
focus on developing add-on carbon
dioxide capture technologies, combustion
iki/CRS-RL33006technologies and increasing the
g/wefficiency of the overall combustion
s.orsystem. In addition, the Secretary would
leaksupport a carbon sequestration program
with the private sector through regional
://wikipartnerships.
httpthorization of Appropriations Sec. 968. Funds are authorized inSec. 951. Funds would be authorized in
general and for programs described ingeneral for years FY2006-FY2008 and
Sec. 967 for years FY2006- FY2010. specifically for programs described in
Sections 954, 955, and 956.
estern MichiganSec. 968A. The EPA in consultation withNo similar provision.


onstration Project the State of Michigan would conduct
demonstration projects to assess the
effect of transported ozone and ozone
precursors in southwest Michigan.

CRS-107
sion House Senate Comments
estern Hemisphere EnergySec. 968B. The Secretary would carrySec. 981. Same provision, except slightly
ion out a program to promote cooperation onhigher appropriations during FY2006-
energy issues among WesternFY2008.
Hemisphere countries including, to the
extent practicable, universities.
Authorized funding would be for years
FY2006-FY2010.
ctic Engineering ResearchSec. 968C. The Secretary of Energy inNo similar provision.
nter consultation with the Secretary of
Transportation would establish the Arctic
Engineering Research Center in
iki/CRS-RL33006Fairbanks, AK, to conduct R&D on
g/wimproving the infrastructure in the Arctic
s.orregion. A sum of $3 million would
leakauthorized and made available in a grant
to a specified university each year for
://wikiyears FY2006-FY2011.
httprrow Geophysical ResearchSec. 968D. The Secretary of CommerceNo similar provision.


in consultation with the Secretaries of
Energy and the Interior and Director of
the National Science Foundation and the
Administrator of the EPA would
establish the “Barrow Geophysical
Research Facility in Barrow, Alaska. A
sum of $61 million would be authorized
to be appropriated.

CRS-108
sion House Senate Comments
ane Hydrate Reseaerch No similar provision.Sec. 953. A methane hydrate research
and development program would be
established. A methane hydrate advisory
panal would be set up and a study would
be conducted by the National Research
Council that would assess the R&D
program. Funds would be authorized for
years FY2006 - FY2010.
w-volume gas reservoirNo similar provision.Sec. 954. A program would be
earch program established by the Secretary to maximize
the productive capacity of marginal wells
iki/CRS-RL33006and reservoirs. Funds would be
g/wauthorized for FY2006-FY2008.
s.or
leaksearch and development forNo similar provision.Sec 955. A program on coal mining
://wikial mining technologies technologies would be established.
http
al and related technologiesSimilar provision. (See Sec. 441 ofSec. 956. In addition to the programs
House bill.)authorized under title IV, DOE would be
required to conduct a program of
technology research, development, and
demonstration and commercial
application for coal and power systems.
mplex well technologyNo similar provision.Sec. 958. A Complex Well Technology
g facility Testing Facility would be established at
the Rocky Mountain Oilfield Testing
Center to increase range of extended
drilling technologies.



CRS-109
sion House Senate Comments
albed Methane Study No similar provision.Sec. 1305. The Secretary, along with the
National Academy of Science, and the
Administrator of EPA would conduct a
study on the effect of CBM production
on surface and ground water resources
including groundwater aquifers in several
western states.
— Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources
iki/CRS-RL33006sion House Senate Comments
g/w
s.orogram AuthoritySec. 969. R&D would be directed towardNo similar provision.
leakthe demonstration and commercial
application of technology for
://wikiultra-deepwater oil and gas production,
httpincluding unconventional oil and gas
resources. The R&D program would be
designed to benefitsmall producers
and address environmental concerns.
Complementary research would be
carried out through DOE’s National
Energy Technology Laboratory.
Deepwater andSec. 970. The Secretary of Energy couldNo similar provision.


conventional Onshorecontract with a consortium to recommend
ral Gas and Otherultra-deepwater research projects and
troleum Researchmanage funding awarded under this
program. The Secretary would make
competitive awards to research consortia
for conducting R&D on advanced

CRS-110
sion House Senate Comments
technologies for recovering coalbed
methane and other unconventional
resources.
ditional Requirements forSec. 971. The Secretary could reduce orNo similar provision.
ardseliminate the non-federal cost-share
requirement for awards under this
program, 2.5% of each award would be
designated for technology transfer, and
various additional award requirements
would be stipulated.
iki/CRS-RL33006visory CommitteesSec. 972. An Ultra-Deepwater AdvisoryNo similar provision.
g/wCommittee and an UnconventionalResources Technology Advisory
s.orCommittee would be established.
leak
://wikimits on ParticipationSec. 973. This section would establishcriteria for foreign participation. No similar provision.
http
tSec. 974. The authority in this partNo similar provision.
would terminate at the end of FY2014.
initions Sec. 975. The terms deepwater,No similar provision.
ultra-deepwater, unconventional oil and
gas, independent producers of oil and
gas, and others would be defined.
ingSec. 976. The Ultra-Deepwater andNo similar provision.


Unconventional Natural Gas and Other
Petroleum Research Fund would be
established. Revenues derived from
federal oil and gas leases, after all
previously mandated distributions of

CRS-111
sion House Senate Comments
those revenues had been made, would be
deposited in the fund, up to $200 million
annually during FY2005-FY2014. The
Secretary of Energy could obligate
money from the fund for programs in this
part without an overall annual limit,
although annual percentage allocations
among the programs would be spelled
out.
iki/CRS-RL33006Department of Energy Management
g/w
s.or
leaksion House Senate Comments
://wikier Transactions Authority Sec. 1002. This would amend SectionSec. 1011. This would amend Section
http646 of the DOE Organization Act (42646 of the DOE Organization Act (42
U.S.C. 7256) to allow the EnergyU.S.C. 7256 to allow the Energy
Secretary to enter into additionalSecretary to enter into other transactions
transactions furthering research,in furtherance of research, development,
development, or demonstration withoutor demonstration functions not subject to
requiring that title to inventions be vestedSection 9 of the Federal Nonnuclear
in the federal government as currentlyEnergy Research and Development Act
specified by Section 9 of the Federalof 1974 (42 U.S.C. 5908) that does not
Nonnuclear Energy Research andduplicate research, development,
Development Act of 1974 (42 U.S.C.or demonstration being conducted under
5908) or section 152 of the Atomicexisting projects carried out by the
Energy Act of 1954 (42 U.S.C. 2182). Department.



CRS-112
sion House Senate Comments
iversity Collaboration Sec. 1003. The Secretary of EnergySec. 1327. The Energy Secretary would
would report on the feasibility ofreport on the feasibility of promoting
promoting collaboration betweencollaborations between large institutions
Doctoral Research Extensive Universities of higher education and small institutions
in grants, contracts, and cooperativeof higher education through grants,
agreements made by the Secretary forcontracts, and cooperative agreements
energy projects.made by the Secretary for energy
proj ects.
all Business Advocacy andNo comparable section.Sec. 1007. This section would require
nce appointment of a small business advocate
at each National Laboratory and
iki/CRS-RL33006research facility to increase the
g/wparticipation of small business concerns,
s.orincluding socially and economically
leakdisadvantaged small business concerns.
://wikitreach No comparable section.Sec. 1008. DOE would ensure that eachprogram authorized by this Act includes
httpan outreach component to provide
information to manufacturers, consumers,
engineers, architects, builders, energy
service companies, institutions of higher
education, facility planners and
managers, state and local governments,
and other entities.
nse of Congress Sec. 1004. This section would establish aNo comparable provision.


sense of Congress that the Secretary of
Energy should apply more stringent
procurement and inventory controls to
prevent waste of taxpayer funds, and the
Departments Inspector General should

CRS-113
sion House Senate Comments
continue to closely review the use of
purchase cards.
Electricity
sion House Senate Comments
ort Title Sec. 1201. This title may be cited as theSec. 1201. This title may be cited as the
Electric Reliability Act of 2005.”Electricity Modernization Act of 2005.”
iki/CRS-RL33006
g/w
s.or
leakliability Standards
://wikision House Senate Comments
http
ic Reliability Standards Sec. 1211. This section would requireSec. 1211. Similar to House version. The North American Electric Reliability Council
the Federal Energy RegulatoryDefinition ofreliability standard does(NERC) currently has responsibility for reliability
Commission to promulgate rules withinnot include cybersecurity protection.of the bulk power system. NERC has established
180 days of enactment to create a FERC-Includes definition ofregional entity.’ reliability guidelines but has no enforcement
certified electric reliability organizationWould not limit the amount of dues, fees,authority. The Federal Power Act currently gives
(ERO). Under this section, the EROand other charges the ERO could collect.FERC jurisdiction over unbundled transmission
would develop and enforce reliabilityWould not specifically allow New Yorkand authority to regulate wholesale rates;
standards for the bulk-power system,to establish reliability rules that wouldhowever, no authority was provided to regulate
including cybersecurity protection. Newresult in greater reliability within the statereliability. (See Appendix E for more
York would be allowed to establishof New York. information.)


reliability rules that would result in
greater reliability within the state of New
York. All ERO standards would be

CRS-114
sion House Senate Comments
approved by FERC. Under this title, the
ERO could impose penalties on a user,
owner, or operator of the bulk-power
system that violates any FERC-approved
reliability standard. In addition, FERC
could order compliance with a reliability
standard and could impose a penalty if
FERC finds that a user, owner, or
operator of the bulk-power system has
engaged in or is about to engage in a
violation of a reliability standard. This
provision would not give an ERO or
iki/CRS-RL33006FERC authorization to order construction
g/wof additional generation or transmission
s.orcapacity.
leak
://wikicture Modernization
http
sion House Senate Comments
g of Interstate ElectricSec. 1221. The Secretary of EnergySec. 1221. Similar to House-passed H.R.
ansmission Facilities would be required to conduct a study of6. Would not exempt the Electric
electric transmission congestion everyReliability Council of Texas (ERCOT)
three years. Based on the findings, thefrom this section.


Secretary of Energy could designate a
geographic area as being congested.
Under certain conditions, FERC would
be authorized to issue construction
permits. Under proposed Federal Power
Act (FPA) section 216(d), affected states,
federal agencies, Indian tribes, property

CRS-115
sion House Senate Comments
owners, and other interested parties
would have an opportunity to present
their views and recommendations with
respect to the need for and impact of a
proposed construction permit. However,
there is no requirement for a specific
comment period. New FPA section
216(e) would allow permit holders to
petition in U.S. District Court to acquire
rights-of-way through the exercise of the
right of eminent domain. Any exercise
of eminent domain authority would be
iki/CRS-RL33006considered to be takings of private
g/wproperty for which just compensation is
s.ordue. New FPA section 216(g) does not
leakstate whether property owners would be
required to reimburse compensation if the
://wikirights-of-way were transferred back to
httpthe owner. The Electric Reliability
Council of Texas (ERCOT) would be
exempted from this section.
-
An applicant for federal authorization to
site transmission facilities on federal
lands could request that the Department
of Energy be the lead agency to
coordinate environmental review and
other federal authorization. Once a
completed application is submitted, all
related environmental reviews would be
required to be completed within one year
unless another federal law makes that
impossible. FPA section 216(h) would



CRS-116
sion House Senate Comments
give the Department of Energy new
authority to prepare environmental
documents and appears to give DOE
additional decision-making authority for
rights-of-way and siting on federal lands.
This would appear to give DOE input
into the decision process for creating
rights-of-way. Review under section 503
of the Federal Land Policy and
Management Act could be streamlined by
relying on prior analyses. If a federal
agency has denied an authorization
iki/CRS-RL33006required by a transmission or
g/wdistributions facility, the denial could be
s.orappealed by the applicant or relevant
leakstate to the Secretary of Energy. The
Secretary of Energy would be required to
://wikiissue a decision within 90 days of the
httpappeal’s filing. States could enter into
interstate compacts for the purposes of
siting transmission facilities and the
Secretary of Energy could provide
technical assistance. The House-passed
version of this section would not apply to
the Electric Reliability Council of Texas
(ERCOT).
ird-Party Finance Sec. 1222. The Western Area PowerSec. 1222. Similar provision.Under current law the enabling statutes for power
Administration (WAPA) and themarketing administrations may restrict third-party
Southwestern Power Administrationfinancing, construction, operation, and
(SWPA) would be able to either continuemaintenance of transmission facilities.


to design, develop, construct, operate,
maintain, or own transmission facilities

CRS-117
sion House Senate Comments
within their regions or participate with
other entities for the same purposes if:
the Secretary of Energy designates the
area as a National Interest Electric
Transmission Corridor and the project
would reduce congestion, or the project is
needed to accommodate projected
increases in demand for transmission
capacity. The project would be required
to be consistent with the needs identified
by the appropriate Regional
Transmission Organization or
iki/CRS-RL33006Independent System Operator. No more
g/wthan $100 million from third-party
s.orfinancing may be used during fiscal years
leak2006 through 2015.
://wikiansmission Systemonitoring Sec. 1223. Within six months ofenactment, the Secretary of Energy andSec. 1314. Similar provision.


httpthe Federal Energy Regulatory
Commission would be required to
complete a study and report to Congress
on what would be required to create and
implement a transmission monitoring
system for the Eastern and Western
interconnections. The monitoring system
would provide all transmission system
owners and Regional Transmission
Organizations real-time information on
the operating status of all transmission
lines.

CRS-118
sion House Senate Comments
vanced TransmissionSec. 1224. FERC would be directed toSec. 1223. Similar provision.
chnologies encourage deployment of advanced
transmission technologies.
ransmission andSec. 1225. The Secretary of Energy,No similar provision.
stribution Programs acting through the Director of the Office
of Electric Transmission and
Distribution, would be required to
implement a program to promote
reliability and efficiency of the electric
transmission system. Within one year of
enactment, the Secretary of Energy
iki/CRS-RL33006would be required to submit to Congress
g/wa report detailing the programs five-year
s.orplan. Within two years of enactment, the
leakSecretary of Energy would be required to
submit to Congress a report detailing the
://wikiprogress of the program. The Secretaryof Energy would be directed to establish
httpa research, development, demonstration,
and commercial application initiative that
would focus on high-temperature
superconductivity. For this project,
appropriations would be authorized for
FY2006 through FY2010.
vanced Power SystemSec. 1226. A program would beSec. 1224. Similar provision.


nology Incentive Program established to provide incentive
payments to owners or operators of
advanced power generation systems.
Eligible systems would include advanced
fuel cells, turbines, or hybrid power
systems. For FY2006 through FY2012

CRS-119
sion House Senate Comments
an annual appropriation of $10 million
would be authorized.
fice of Electric TransmissionSec. 1227. This would amend Title II ofNo provision.
d Distribution the Department of Energy Organization
Act (42 U.S.C. 7131 et seq) to establish
an Office of Electric Transmission and
Distribution. The Director of the office
would, in part, coordinate and develop a
strategy to improve electric transmission
distribution, implement recommendations
from the Department of Energys
iki/CRS-RL33006National Transmission Grid Study,
g/woversee research, development, and
s.ordemonstration to support federal energy
leakpolicy related to electricity transmission
and distribution, and develop programs
://wikifor workforce training and powertransmission engineering.
http
ion Improvements
sion House Senate Comments
Nondiscriminatory Access Sec. 1231. FERC would be authorized toSec. 1231. Similar provision.Currently under the Federal Power Act (Section
require, by rule or order, unregulated201(f)), federal power marketing administrations,
transmitting utilities (power marketingstate entities, and rural electric cooperatives are
administrations, state entities, and ruralnot subject to FERCs ratemaking. In §1231,
electric cooperatives) to charge ratesexemptions are established for utilities selling less
comparable to what they chargethan 4 million megawatt-hours of electricity per
themselves and require that the terms andyear, for distribution utilities, and for utilities that



CRS-120
sion House Senate Comments
conditions of the sales be comparable toown or operate transmission facilities that are not
those required of other utilities. Thisnecessary to facilitate a nationwide interconnected
exemption could be revoked to maintaintransmission system. This section is often referred
transmission system reliability. FERCto as “FERC-lite.”
would not be authorized to order states or
municipalities to take action under this
section if such action would constitute a
private use under section 141 of the
Internal Revenue Code of 1986. FERC
may remand transmission rates to an
unregulated transmitting utility if the
rates do not comply with this section.
iki/CRS-RL33006FERC is not authorized to order an
g/wunregulated transmitting utility to join a
s.orRegional Transmission Organization or
leakother FERC-approved independent
transmission organization.
://wikigional TransmissionSec. 1232. This would establish a senseSec. 1232. FERC could encourage andCurrently, section 202(a) of the Federal Power Act
httpganizations (RTO) of Congress that utilities shouldapprove the voluntary formation ofdirects FERC to promote and encourage regional
voluntarily become members of regionalRTOs, Independent System Operatorsdistricts for the voluntary interconnection and
transmission organizations. (ISOs), or similar organizations. Eachcoordination of transmission facilities by public
transmission organization would beutilities and non-public utilities for the purpose of
required to report to FERC on aassuring an abundant supply of electric energy
scheduled basis to ensure that thethroughout the United States with the greatest
transmission organizations operationspossible economy.


are cost effective and consistent with the
FERC-approved tariffs and agreements.
FERC would be required to perform an
annual audit of each transmission
o r ga ni z a t i o n.

CRS-121
sion House Senate Comments
gional TransmissionSec. 1233. FERC would be required toNo provision.
ganization Applicationsreport to Congress within 120 days of
ress Report enactment the status of all regional
transmission organization applications.
eral Utility Participation inSec. 1234. Federal utilities (powerSec. 1233. Similar provision.
gional Transmissionmarketing administrations or the
ganizations Tennessee Valley Authority) would be
authorized to participate in regional
transmission organizations. A law
allowing federal utilities to study
formation and operation of a regional
iki/CRS-RL33006transmission organization would be
g/wrepealed (16 U.S.C. 824n).
s.ordard Market Design Sec. 1235. FERCs proposed rulemakingSec. 1234. FERCs proposed rulemakingOn July 31, 2002, FERC issued a Notice of
leakon standard market design (Docket No.on standard market design (Docket No.Proposed Rulemaking (NOPR) on standard market
://wikiRM01-12-000) would be remanded toFERC for reconsideration. No finalRM01-12-000 would be terminated andFERC would not be allowed to reissuedesign (SMD). FERC’s stated goal of establishingSMD requirements in conjunction with a
httprulemaking, including any rule or orderthe proposal.standardized transmission service is to create
of general applicability to the standardseamless wholesale power markets that allow
market design proposed rulemaking,sellers to transact easily across transmission grid
could be issued before October 31, 2006,boundaries. The proposed rulemaking would
or could take effect before December 31,create a new tariff under which each transmission
2006. This section would retain FERCsowner would be required to turn over operation of
ability to issue rules or orders and act onits transmission system to an unaffiliated
regional transmission organization orindependent transmission provider (ITP). The ITP,
independent system operator filings.which could be an RTO, would provide service to
all customers and run energy markets. Under the
NOPR, congestion would be managed with
locational marginal pricing. The NOPR comment
period originally was 75 days (ending November
15, 2002), but the comment period was extended



CRS-122
sion House Senate Comments
to January 10, 2003, for the following issues: (1)
market design for the Western Interconnection; (2)
transmission pricing plan, including participant
funding; (3) Regional State Advisory Committees
and state participation; (4) resource adequacy; and
(5) congestion revenue rights and transition issues.
(See Appendix F for more information.)
e Load Service Obligation Sec. 1236. This section would amend theSec. 1235. Similar provision.Currently Section 201 of the Federal Power Act
Federal Power Act to clarify that a load-gives FERC jurisdiction overthe transmission of
serving entity is entitled to use itselectric energy in interstate commerce and the sale
transmission facilities or firmof such energy at wholesale in interstate
iki/CRS-RL33006transmission rights to serve its existingcommerce.” Section 205 of the Federal Power Act
g/wcustomers before it is obligated to makeprohibits utilities from grantingundue preference
s.orits transmission capacity available foror advantage to any person or subject any person
leakother users. FERC would not be able toto any undue prejudice or disadvantage” (16
change any approved allocation ofU.S.C. 824). The new language of this section is
://wikitransmission rights by an RTO or ISOapproved prior to January 1, 2005. Thisintended to clarify that reserving transmission forexisting customers (native load) is not considered
httpsection contains language to allow publicunduly discriminatory.


power utilities to enter into long-term
contracts to serve their native load as
well as giving them access to the
transmission system.

CRS-123
sion House Senate Comments
dy on the Benefits ofSec. 1237. The Secretary of Energy, inSec. 1316. Similar provision.
omic Dispatch consultation with the states, would be
required to issue an annual report to
Congress and the states on the current
status of economic dispatch. Economic
dispatch would be defined asthe
operation of generation facilities to
produce energy at the lowest cost to
reliably serve consumers, recognizing
any operational limits of generation and
transmission facilities.”
iki/CRS-RL33006ection of TransmissionNo provision.Sec. 1236. FERC could not requireThe area of the Pacific Northwest is the region
g/wntracts in the Pacificelectric utilities in the Pacific Northwest defined in section 3 of the Pacific Northwest
s.orrthwestto convert firm transmission rights toElectric Power Planning and Conservation Act (16
leaktradable or financial rights.U.S.C.839a) or a portion of a state included in the
geographic area proposed for a Regional
://wikiTransmission Organization in FERC Docket No.RT01-35.
http
sion House Senate Comments
ansmission InfrastructureSec. 1241. FERC would be required toSec. 1241. FERC would be required to


stment establish a rule to create incentive-basedestablish a rule to create incentive-based
transmission rates. FERC would betransmission rates. FERC would be
authorized to revise the rule. The ruleauthorized to revise the rule. The rule
would promote reliable and economicallywould promote reliable and economically
efficient electric transmission andefficient electric transmission and
generation, provide for a return on equitygeneration, provide for a return on equity
that would attract new investment inthat would attract new investment in

CRS-124
sion House Senate Comments
transmission, encourage use oftransmission, encourage use of
technologies that increased the transfertechnologies that increased the transfer
capacity of existing transmissioncapacity of existing transmission
facilities, and would allow for thefacilities, and would allow for the
recovery of all prudently incurred costsrecovery of all prudently incurred costs
that are necessary to comply withthat are necessary to comply with
mandatory reliability standards. Inmandatory reliability standards and those
addition, FERC would be directed tothat would result from transmission siting
implement incentive rate-making forand construction on a National Interest
utilities that join a Regional TransmissionElectric Transmission Corridor.
Organization or Independent System
Operator.
iki/CRS-RL33006
g/wing New InterconnectionNo provision.Sec. 1242. FERC could approve a
s.ord Transmission Upgrades. participant funding plan to allocate costs
leakrelated to transmission construction or
new generator interconnection as long as
://wikithe resulting rates would be just andreasonable, not unduly discriminatory or
httppreferential, and are otherwise consistent
with sections 205 and 206 of the Federal
Power Act.
endments to PURPA
sion House Senate Comments
ing and AdditionalSec. 1251. For states that have notSec. 1251. Similar Provision.


ards considered implementation and adoption
of net metering standards, within three
years of enactment, state regulatory

CRS-125
sion House Senate Comments
authorities would be required to consider
whether to implement net metering. Net
metering service is defined as service to
an electric consumer under which electric
energy generated by that electric
consumer from an eligible on-site
generating facility (e.g., solar or small
generator) and delivered to local
distribution facilities may be used to
offset electric energy provided by the
electric utility to the electric consumer
during the applicable billing period.
iki/CRS-RL33006
g/wart Metering Sec. 1252. For states that have notSec. 1252. Similar provision.


s.orconsidered implementation and adoption
leakof a smart metering standard, state
regulatory authorities would be required
://wikito initiate an investigation within oneyear of enactment, and issue a decision
httpwithin two years of enactment, whether
to implement a standard for time-based
meters and communications devices for
all electric utility customers. These
devices would allow customers to
participate in time-based pricing rate
schedules. This section would amend the
Public Utility Regulatory Policies Act of
1978 (PURPA) and would require the
Secretary of Energy to provide consumer
education on advanced metering and
communications technologies, to identify
and address barriers to adoption of
demand response programs, and issue a

CRS-126
sion House Senate Comments
report to Congress that identifies and
quantifies the benefits of demand
response. The Secretary of Energy
would provide technical assistance to
regional organizations to identify demand
response potential and to develop
demand response programs to respond to
peak demand or emergency needs.
FERC would be directed to issue an
annual report, by region, to assess
demand response resources.
iki/CRS-RL33006
g/wgeneration and Small PowerSec. 1253. Currently, §210 of PURPASec. 1253. Similar Provision.The oil embargoes of the 1970s created concerns
s.orction Purchase and Salerequires utilities to purchase power fromabout the security of the nations electricity supply
leakquirements qualifying facilities and small powerand led to enactment of the Public Utility
producers at a rate based on the utilities’Regulatory Policies Act of 1978 (PURPA). For
://wikiavoided cost. This section would repealthe mandatory purchase requirementthe first time, utilities were required to purchasepower from outside sources. The purchase price
httpunder §210 of PURPA for new contractswas set at the utilities’avoided cost,” the cost
if FERC finds that a competitivethey would have incurred to generate the
electricity market exists and a qualifyingadditional power themselves, as determined by
facility has access to independentlyutility regulators. PURPA was established in part
administered, auction-based day-aheadto augment electric utility generation with more
and real-time wholesale markets andefficiently produced electricity and to provide
long-term wholesale markets. Qualifyingequitable rates to electric consumers.
facilities would also need to have access(See Appendix G for more information.)


to transmission and interconnection
services provided by a FERC-approved
regional transmission entity that provides
non-discriminatory treatment for all
customers. Ownership limitations under
PURPA would be repealed.

CRS-127
sion House Senate Comments
terconnection Sec. 1254. Each state regulatorySec. 1254. Similar provision.
authority and each nonregulated utility
would consider establishing an
interconnection standard for on-site
generating facilities wishing to be
connected to the local distribution
facilities, if it has not already done so.
Consideration of the standard would be
commenced not later than one year after
enactment and completed not later than
two years after the date of enactment.
iki/CRS-RL33006
g/w of PUHCA
s.or
leak
sion House Senate Comments
://wiki
httport TitleSec. 1261. This subtitle may be cited asSec. 1271. Same.
the “Public Utility Holding Company Act
of 2005.”
initions Sec. 1262. This section would provideSec. 1272. Similar provision.


definitions for: affiliate, associate
company, commission, company, electric
utility company, exempt wholesale
generator and foreign utility company,
gas utility company, holding company,
holding company system, jurisdictional
rates, natural gas company, person,
public utility, public-utility company,
state commission, subsidiary company,
and voting security.

CRS-128
sion House Senate Comments
eal of the Public UtilitySec. 1263. The Public Utility HoldingSec. 1273. Similar provision.In general, the Public Utility Holding Company
lding Company Act of 1935 Company Act of 1935 (PUHCA) wouldAct of 1935 currently prohibits all holding
be repealed.companies that are more than twice removed from
the operating subsidiaries. It also federally
regulates holding companies of investor-owned
utilities, and provides for Securities and Exchange
Commission (SEC) regulation of mergers and
diversification proposals. Registered holding
companies of subsidiaries are required to have
SEC approval prior to issuing securities; all loans
and intercompany financial transactions are
regulated by the SEC. A holding company can be
iki/CRS-RL33006exempt from PUHCA if its business operations
g/wand those of its subsidiaries occur within one state
s.oror within contiguous states.
leak(See Appendix H for more information.)
://wikideral Access to Books and Sec. 1264. Federal access to books andrecords of holding companies and theirSec. 1274. Similar provision.Currently, registered holding companies andsubsidiary companies are required to preserve
httpaffiliates would be provided. Affiliateaccounts, cost-accounting procedures,
companies would have to make availablecorrespondence, memoranda, papers, and books
to FERC books and records of affiliatethat the SEC deems necessary or appropriate in
transactions. Federal officials wouldthe public interest or for the protection of
have to maintain confidentiality of suchinvestors and consumers (15 U.S.C. 79o.).
books and records.
ccess to Books andSec. 1265. A jurisdictional stateSec. 1275. Similar provision.Currently under the Federal Power Act, state
commission would be able to make acommissions may examine the books, accounts,
reasonably detailed written request to amemoranda, contracts, and records of a
holding company or any associatejurisdictional electric utility company, an exempt
company for access to specific books andwholesale generator that sells to such electric
records, which would be keptutility, and an electric utility company or holding
confidential. This section would notcompany that is an associate company or affiliate



CRS-129
sion House Senate Comments
apply to an entity that is considered to beof an exempt wholesale generator. In issuing such
a holding company solely by reason ofan order, a state commission currently is not
ownership of one or more qualifyingrequired to specify which books, accounts,
facilities. Response to such a requestmemoranda, contracts, and records it is
would be mandatory. Compliance withrequesting.
this section would be enforceable in U.S.
District Court.
emption Authority Sec. 1266. FERC would be directed toSec. 1276. Similar provision.
promulgate rules to exempt qualifying
facilities, exempt wholesale generators,
and foreign utilities, from the federal
iki/CRS-RL33006access to books and records provision
g/w(Section 1264).
s.orfiliate Transactions Sec. 1267. FERC would retain theSec. 1277. Similar provision. Currently, the Federal Power Act requires that
leakauthority to prevent cross-subsidizationjurisdictional rates are just and reasonable and
://wikiand to assure that jurisdictional rates arejust and reasonable. FERC and stateprohibits cross-subsidization (16 U.S.C. 791a etseq.).
httpcommissions would retain jurisdiction to
determine whether associate company
activities could be recovered in rates.
plicability Sec. 1268. Except as specifically noted,Sec. 1278. Similar provision.


this subtitle would not apply to the U.S.
government, a state or any political
subdivision of the state, or foreign
governmental authority operating outside
the United States.

CRS-130
sion House Senate Comments
ct on Other Regulations Sec. 1269. FERC or state commissionsSec. 1279. Similar provision.
would not be precluded from exercising
their jurisdiction under otherwise
applicable laws to protect utility
customers.
forcement Sec. 1270. FERC would have authoritySec. 1280. Similar provision.Currently, the Securities and Exchange
to enforce these provisions under sectionsCommission has authority to investigate and
306-317 of the Federal Power Act.enforce provisions of the Public Utility Holding
Company Act of 1935 (15 U.S.C. 79r).
iki/CRS-RL33006vings Provisions Sec. 1271. Persons would be able toSec. 1281. Similar provision.
g/wcontinue to engage in legal activities inwhich they have been engaged or are
s.orauthorized to engage in on the effective
leakdate of this Act. This subtitle would not
://wikilimit the authority of FERC under theFederal Power Act or the Natural Gas
httpAc t .
plementation Sec. 1272. Not later than 12 months afterSec 1282. Similar Provision, but not later
enactment, FERC would be required tothan four months after enactment.


promulgate regulations necessary to
implement this subtitle and submit to
Congress recommendations for technical
or conforming amendments to federal
law that would be necessary to carry out
this subtitle.

CRS-131
sion House Senate Comments
ansfer of Resources Sec. 1273. The Securities and ExchangeSec. 1283. Similar Provision.
Commission would be required to
transfer all applicable books and records
to FERC. However, no time frame for
transfer of books and records is provided.
Currently, the Securities and Exchange
Commission maintains books and records
and regulates security transactions (15
U.S.C. 79 et seq.).
fective Date Sec. 1274. Twelve months afterSec. 1284. Six months after enactment,
enactment, this subtitle would take effect. this subtitle would take effect. This
iki/CRS-RL33006This effective date would not apply toeffective date would not apply to §1282
g/w§1269 (effect on other regulations),(implementation).
s.or§1270 (enforcement), §1271 (savings
leakprovisions), and §1272 (implementation).
://wikivice Allocation Sec. 1275. FERC would be required toSec. 1285. Similar provision.


httpreview and authorize cost allocations for
non-power goods or administrative or
management services provided by an
associate company that was organized
specifically for the purpose of providing
such goods or services. This section
would not preclude FERC or state
commissions from exercising their
jurisdiction under other applicable laws
with respect to review or authorization of
any costs. FERC would be required to
issue rules within six months of
enactment to exempt from the section
any company and holding company

CRS-132
sion House Senate Comments
system if operations are confined
substantially to a single state.
thorization of AppropriationsSec. 1276. Necessary funds to carry outSec. 1286. Similar provision.
this subtitle would be authorized to be
appropriated.
nforming Amendments to theSec. 1277. The Federal Power Act wouldSec. 1287. Similar provision.
deral Power Act be amended to reflect the changes to the
Public Utility Holding Company Act of
1935. (Current jurisdiction of the
Securities and Exchange Commission
iki/CRS-RL33006under the Public Utility Holding
g/wCompany Act of 1935 is referenced by16 U.S.C. 825q; 16 U.S.C. 824(g)(5), and
s.or16 U.S.C. 824m.)
leak
://wiki
httprket Transparency, Enforcement,
Protection
sion House Senate Comments
et Transparency Rules Sec. 1281. Within 180 days afterSec. 1261. FERC could issue rules to
enactment, FERC would be required toestablish an electronic system that
issue rules to establish an electronicprovides information about the
system that provides information aboutavailability and price of wholesale
the availability and price of wholesaleelectric energy and transmission services.
electric energy and transmission services. Any rule would exempt from disclosure
FERC would exempt from disclosure anyany information that, if disclosed, could
information that, if disclosed, could bebe detrimental to the operation of the



CRS-133
sion House Senate Comments
detrimental to the operation of theeffective market or jeopardize system
effective market or jeopardize systemsecurity. FERC would be required to
security. FERC would be required toassure that consumers in competitive
assure that consumers in competitivemarkets are protected from adverse
markets are protected from adverseeffects of potential collusion or other
effects of potential collusion or otheranti-competitive behaviors that could
anti-competitive behaviors that couldoccur as a result of untimely public
occur as a result of untimely publicdisclosure of transaction-specific
disclosure of transaction-specificinformation. Any rule could not affect
information. This section would notthe exclusive jurisdiction of the
affect the exclusive jurisdiction of theCommodity Futures Trading Commission
Commodity Futures Trading Commission(CFTC) with respect to accounts,
iki/CRS-RL33006with respect to accounts, agreement,agreement, contracts, or transactions in
g/wcontracts, or transactions in commoditiescommodities under the Commodity
s.orunder the Commodity Exchange Act. Exchange Act. Under a rule, if FERC
leakFERC would not be allowed to competerequests information from a designated
with, or displace, any price publisher orcontract market, registered derivatives
://wikiregulated price publishers or impose anytransaction execution facility, board of
httprequirements on the publication oftrade, exchange, or market involving a
information.commodity which is under the
jurisdiction of the CFTC, then FERC’s
request would be directed to the CFTC.
FERC would not be allowed to compete
with, or displace, any price publisher or
regulated price publishers or impose any
requirements on the publication of
information. This section would not
apply to the area of the Electric
Reliability Council of Texas.
ket Manipulation Sec. 1282. It would be unlawful toSec. 1262. Would prohibit entities fromCurrently, mail fraud laws in part apply to use of
willfully and knowingly file a false reportfraudulently reporting to a federal agencythe mail for the purpose of executing, or
on any information relating to the priceinformation relating to the price ofattempting to execute, a scheme or artifice to



CRS-134
sion House Senate Comments
of electricity sold at wholesale or theelectricity sold at wholesale or thedefraud or for obtaining money or property by
availability of transmission capacity, withavailability of transmission capacity.false or fraudulent pretenses, representations, or
the intent to fraudulently affect data-promises. Wire fraud statutes cover use of wire,
being compiled by a federal agency. ItSec. 1263. Would prohibit any entity, inradio, or television communication in interstate or
would be unlawful for any individual,connection with the purchase or sale offoreign commerce to transmit or to cause to be
corporation, or government entityFERC jurisdictional electric energy ortransmitted any writings, signs, signals, pictures,
(municipality, state, power marketingtransmission services, from directly oror sounds for the purpose of executing a scheme
administration) to engage in round-tripindirectly using any manipulative oror artifice to defraud or for obtaining money or
electricity trading. Round-trip trading isdeceptive device or contrivance.property by means of false or fraudulent pretenses,
defined to include contracts in whichrepresentations, or promises.
purchase and sale transactions have no
specific financial gain or loss and are
iki/CRS-RL33006entered into with the intent to distort
g/wreported revenues, trading volumes, or
s.orprices.
leak
forcement Sec. 1283. The Federal Power Act wouldSec. 1264. Similar provision.Currently, criminal penalties may not exceed
://wikibe amended to allow electric utilities tofile complaints with FERC and to allow$5,000 and/or two years imprisonment. Anadditional fine of $500 can be imposed. A civil
httpcomplaints to be filed againstpenalty not exceeding $10,000 per day per
transmitting utilities. Criminal and civilviolation may be assessed for violations of
penalties under the Federal Power Actsections 211, 212, 213, or 214 of the Federal
would be increased. Criminal penaltiesPower Act.


would not exceed $1 million and/or five
years’ imprisonment. In addition, a fine
of $25,000 could be imposed. A civil
penalty not exceeding $1 million per day
per violation could be assessed for
violations of sections 211, 212, 213, or
214 of the Federal Power Act.

CRS-135
sion House Senate Comments
und Effective Date Sec. 1284. Section 206(b) of the FederalSec. 1265. Similar provision.Currently, refunds for rates that FERC finds to be
Power Act would be amended to allowunjust, unreasonable, unduly discriminatory, or
the effective date for refunds to begin atpreferential begin a minimum of 60 days after a
the time of the filing of a complaint withcomplaint is filed (16 U.S.C. 824e(b)).
FERC but not later than five months after
such a filing. If FERC does not make its
decision within the time-frame provided,
FERC would be required to state its
reasons for not acting in the provided
time-frame for the decision.
und Authority Sec. 1285. Any entity that is not a publicSec. 1266. Any entity referred to under §Currently, Section 201(f) of the Federal Power
iki/CRS-RL33006utility (including an entity referred to201(f) of the Federal Power Act whichAct exempts government entities from FERC rate
g/wunder § 201(f) of the Federal Power Act)enters into a short-term sale of electricityregulation.


s.orand enters into a short-term sale ofthrough an organized FERC
leakelectricity would be subject to the FERCjurisdictional market would be subject to
refund authority. A short-term saleFERC refund authority. A short-term sale
://wikiwould include any agreement to the saleof electric energy at wholesale that is forwould include any agreement to the saleof electric energy at wholesale that is for
httpa period of 31 days or less. This sectiona period of 48-hours or less. Like the
would not apply to electric cooperatives,House version, this provision would not
or any entity that sells less than 8 millionapply to electric cooperatives, or any
megawatt hours of electricity per year. entity that sells less than 8 million
FERC would have refund authority overmegawatt hours of electricity per year.
voluntary short-term sales of electricityFERC would have refund authority over
by Bonneville Power Administration ifvoluntary short-term sales of electricity
the rates charged are unjust andby Bonneville Power Administration if
unreasonable. FERC would havethe rates charged are unjust and
authority over all power marketingunreasonable. The Senate provision
administrations and the Tennessee Valleyspecifies such a refund to be at rates that
Authority to order refunds to achieve justare higher than the highest just and
and reasonable rates. reasonable rate for a short-term sale of
electric energy charged by any other

CRS-136
sion House Senate Comments
entity located in the same geographic
market. FERC would have authority
over all power marketing administrations
and the Tennessee Valley Authority to
order refunds to achieve just and
reasonable rates.
ctity of Contract Sec. 1286. Upon determining that failure Sec. 1266. Similar Provision, but less
to take action would be contrary toexplicit than House version.
protection of the public interest, FERC
would be authorized to modify or
abrogate any contract entered into after
iki/CRS-RL33006enactment of this section. FERC would
g/wnot be able to abrogate or modify
s.orcontracts that expressly provide for a
leakstandard of review other than the public
interest standard.
://wiki
httpnsumer Privacy and UnfairSec. 1287. The Federal TradeSec. 1267. Similar Provision.


ade Practices Commission would be authorized to issue
rules to prohibit slamming and
cramming. Slamming occurs when an
electric utility switches a customers
electric provider without the consumer’s
knowledge. Cramming occurs when an
electric utility adds additional services
and charges to a customer’s account
without permission of the customer. If
the Federal Trade Commission
determines that a state’s regulations
provide equivalent or greater protection,
then the state regulations would apply in

CRS-137
sion House Senate Comments
lieu of regulations issued by the Federal
Trade Commission.
fice of Consumer Advocacy.No provision.Sec. 1268. Would create an Office of
Consumer Advocacy within the
Department of Energy. The Office of
Consumer Advocacy would represent
residential and small commercial
customers, who receive products or
services from FERC jurisdictional public
utilities or natural gas companies, at
FERC hearings, in civil actions brought
iki/CRS-RL33006in connection with FERC actions, and at
g/wproceedings at other federal regulatory
s.oragencies and commissions.
leak
://wikithority of Court to Prohibitons from Serving asNo provision.Sec. 1269. The court would be allowedto prohibit any person who is found to
httpficers, Directors, and Energyhave violated Section 222 of the Federal
aders Power Act (Prohibition on Filing False
Information) from acting as an officer or
director of an electric utility or engaging
in the business of purchasing or selling
FERC jurisdictional electric energy or
transmission services.
for ExtraordinaryNo similar provision.Sec. 1270. FERC would be given
lations exclusive jurisdiction under the Federal
Power Act to determine whether a
requirement to make payments for power
not delivered is not permitted or is
otherwise unjust and unreasonable or



CRS-138
sion House Senate Comments
contrary to the public interest. This
section would apply to any contract that
was entered into in the Western
Interconnection prior to June 20, 2001.
In addition, this section would apply only
to proceedings in which there have been
no final orders or determinations.
nal Action on Refunds forNo provision.Sec. 1333. FERC would be required to
cessive Charges conclude its investigation into the unjust
or unreasonable charges incurred by
California during the 2000-2001
iki/CRS-RL33006electricity crisis as soon as possible and
g/wwould be directed to ensure that refunds
s.orFERC determines are owed to the State
leakof California are paid to the state of
California. FERC would be required to
://wikisubmit to Congress a report by December31, 2005 describing the actions taken by
httpFERC and timetables for further actions.
rger Reform
sion House Senate Comments
er Review Reform andSec. 1291. Within 180 days ofNo similar provision


untability enactment, the Secretary of Energy
would be required to transmit to
Congress a study on whether FERC’s
merger review authority is duplicative
with other agencies authority and that

CRS-139
sion House Senate Comments
would include recommendations for
eliminating any unnecessary duplication.
FERC would be required to issue an
annual report to Congress describing all
conditions placed on mergers under
section 203(b) of the Federal Power Act.
FERC would also be required to include
in its report whether such a condition
could have been imposed under any other
provision of the Federal Power Act.
iki/CRS-RL33006ic Utility Mergers Sec. 1292. The Federal Power Act wouldSec. 1288. Similar to House version butCurrently, under Section 203(a) of the Federal
g/wbe amended to give FERC reviewwould also apply to the purchase, lease,Power Act, FERC review of asset transfers applies
s.orauthority for transfer of assets valued inor acquisition of an existing generatingto transactions valued at $50,000 or more (16
leakexcess of $10 million. FERC would befacility that has a value in excess of $10U.S.C. 824b).


required to give state public utilitymillion and is used to generate electricity
://wikicommissions and governors reasonablenotice in writing. FERC would befor FERC jurisdictional interstatewholesale sales. In addition to the House
httprequired to establish rules to comply withrequirements, the Senate version would
this section. This section would takerequire FERC to determine that the
effect 12 months after enactment. proposed transaction would not result in
harmful cross-subsidization with a non-
utility associate company. This section
would take effect 6 months after
enactme nt.

CRS-140
nitions
sion House Senate Comments
initions Sec. 1295. The definitions forelectricSec. 1291. Similar provision except that
utility” andtransmitting utility” underthe termcommission is not defined in
the Federal Power Act would bethis section.
amended. Definitions for the following
terms would be added to the Federal
Power Act: electric cooperative, regional
transmission organization, independent
system operator, and commission.
iki/CRS-RL33006nforming Amendments Sec. 1297. The Federal Power Act wouldbe amended to conform with this title.Sec. 1295. Similar provision.
g/w
s.or
leakergy Policy and ConservationNo provision.Sec. 1292. Section 609(c)(4) of the
nical Correction. Public Utility Regulatory Policies Act of
://wiki1978 would be amended to conform with
httpthis title.
c Dispatch and Other Electricity
sion House Senate Comments
omic Dispatch Sec. 1298. FERC would be directed toSec. 1316. The Secretary of Energy
convene regional boards to studywould be directed, in coordination and
security constrained economicconsultation with the states, to conduct a
dispatch.” A member of FERC willstudy of economic dispatch. This section
chair each regional joint board that is towould define economic dispatch to mean
be composed of a representative fromthe operation of a generation facility to



CRS-141
sion House Senate Comments
each state. Within one year ofproduce energy at the lowest cost in order
enactment, FERC would be required toto reliably serve consumers, taking into
submit a report to Congress on theconsideration any operational limit of a
recommendations of the joint regionalgeneration or transmission facility. Not
boards. This section does not definelater than 90 days after enactment, and
security constrained economic dispatchannually thereafter, the Secretary of
but it generally means a dispatch systemEnergy must submit the results of the
that ensures that all normal andstudy to Congress.
contingency limits of the system are
simultaneously met under a base case
with one contingency (i.e, the loss of a
critical network element, N-1 security
iki/CRS-RL33006analysis).
g/w
s.oraining Guidelines for ElectricNo similar provision.Sec. 1104. The Secretary of Labor, in
leakergy Industry Personnel consultation with the Secretary of Energy
and in conjunction with industry
://wikipersonnel, would be required to developelectric industry personnel training
http gui d e l i ne s .
nal Power Plant OperationsNo similar provision.Sec. 1107. The Secretary of Energy
chnology and Educationalwould be required to support the
nter establishment of a National Power Plant
Operations Technology and Educational
Center at an institution of higher
education to train and educate operators
and technicians for the electric power
ind ustr y.



CRS-142
sion House Senate Comments
teragency Review ofNo similar provision.Sec. 1315. An interagency task force
mpetition in the Wholesalewould be created to study wholesale and
d Retail Markets for Electricretail competition in the electric industry.
ergy The task force would be required to
report its findings to Congress within one
year of enactment.
udy of Rapid Electrical GridNo similar provision.Sec. 1317. The Secretary of Energy
ration would be required to conduct a study of
the benefits of using mobile transformers
and mobile substations to rapidly restore
electrical service to areas subjected to
iki/CRS-RL33006blackouts. A Report to Congress on the
g/wresults of the study would be required to
s.orbe submitted within one year of
leak enactme nt.
://wikiudy of Distributed Generation No similar provision.Sec. 1318. The Secretary of Energy, inconsultation with Federal Energy
httpRegulatory Commission, would be
required to conduct a study of the
potential benefits of cogeneration and
small power production. Within 18
months of enactment, the Secretary of
Energy would be required to submit the
results of the study to the President and
to Congress.



CRS-143
sion House Senate Comments
fect of ElectricalNo similar provision.Sec. 1331. Not later than 180 days afterElectronic circuitry manufacturing has switched
ntaminants on Reliability ofthe date of enactment of this Act, thefrom using a lead-tin compound for coatings and
ergy Production Systems Secretary of Energy would be required tosoldering to coatings of pure tin. Pure tin is
enter into a contract with the Nationalcapable of forming small, needle-like formations
Academy of Sciences under which the(called tin whiskers) on the surface of the tin
National Academy of Sciences wouldcoatings. Short-circuits could be created between
determine the effect that electricalthe tin whiskers in tightly spaced electronic
contaminants (such as tin whiskers) couldcircuitry.
have on the reliability of energy
production systems, including nuclear
energy.
iki/CRS-RL33006
g/w
s.orEnergy Tax Incentives
leak
://wikision House Senate Comments
httport Title Sec. 1300. This title may be cited as theSec. 1500. This title may be cited as the
Enhanced Energy Infrastructure andEnergy Policy Tax Incentives Act of
Technology Tax Act of 2005.”2005.”
Infrastructure Tax Incentives
sion House Senate Comments
ral Gas Gathering LinesSec. 1301. The House bill would assignNo provision.Under IRC§168(e)(3) and IRS regulations, the
eated As 7-Year Property natural gas gathering lines a 7-yearrecovery period for natural gas gathering lines
recovery period.could be either 7 or 15 years, depending upon
whether they are classified as production or



CRS-144
sion House Senate Comments
transportation equipment. Recent court cases
reflect the ambiguous tax treatment. Natural gas
pipelines have a recovery period of 15 years,
while natural gas distribution lines have a
recovery period of 20 years.
ral Gas Distribution LinesSec. 1302. As noted above, natural gasSec. 1515. The proposal establishes aNatural gas distribution pipelines are currently
eated As 15-Year Property distribution lines currently are assigned astatutory 15-year recovery period and aassigned a 20-year recovery period and a class life
20-year recovery period. The House billstatutory class life of 35 years for naturalof 35 years.
would reduce this to 15 years.gas distribution lines placed in service
before January 1, 2008.
iki/CRS-RL33006derground Natural GasNo provision.Sec. 1541. Senate H.R. 6 provides for aCurrent law provides for a 15 year recovery
g/worage Property 10-year recovery period for undergroundnatural gas storage facilities.period.
s.or
leak
://wikiransmission Propertyeated As 15-Year Property Sec. 1303. This section would shortenthe recovery period for transmissionNo provision.The current law recovery period for transmissionproperty is generally 20 years. The House
httpproperty from 20 to 15 years.provision is intended to create incentives to
increase investment in transmission assets.
Operating Losses No provision.Sec. 1546. Transmission companiesUnder current law, net-operating losses may be
would be allowed to carry-backward anycarried back 2 years or forward 20 years.
operating losses if the added profits
therefrom would be used either to add
transmission or pollution control
equipment.
r Disposition ofNo provision.Sec. 1506. This section would extend theGain from the sale or disposition of transmission
ansmission Assets todeferral provision to sales or dispositionsassets before December 31, 2006, is recognized
plement Federal Energyto an independent transmission companyover 8 years rather than in the year of the capital



CRS-145
sion House Senate Comments
gulatory Commission (FERC)prior to January 1, 2008.gain is realized (thus allowing the tax liability to
structuring Policy be spread over 8 years) as long as new utility
property is purchased withing 4 years.
pansion of Amortization ofSec. 1304. This section would repeal theSec. 1547. Investment in pollutionUnder current law, pollution control equipment
tain Atmospheric Pollutioncondition that only pollution controlcontrol equipment would qualify for acan also qualify for a type of accelerated
ntrol Facilities in Connectionequipment installed on pre-1976 plants15% investment tax credit. Small ethanoldepreciation if it is installed in connection with
ith Plants First Placed-in-qualifies for 60-month amortization. plants — those that produce less than 1older facilities (essentially a plant or equipment
rvice After 1975 million gallons of ethanol annuallyplaced into service before January 1, 1976). Such
would be excluded. equipment can be amortized over five years
instead of the standard 15- or 20-year period
applicable to conventional generating equipment
iki/CRS-RL33006and instead of the same 15- or 20-year period
g/wapplicable to pollution control equipment installed
s.orin connection with newer plants. Amortization is
leaka method of depreciation that recovers the total
cost basis evenly over the recovery period. More
://wikispecifically, the amortization period is five yearsand if the pollution control equipment has a useful
httplife of 15 years or less, 100% of the cost can be
amortized over five years. (If the equipment has a
useful life greater than 15 years, then the
proportion of the costs that can be amortized is
less than 100%.) Pollution control equipment
added to “newer” plants (those placed in service
after 1975) is depreciated using the same General
Depreciation System (GDS) methods that apply to
other electric generating equipment on the date
they are placed in service (15- or 20-year recovery
period using the 150% declining balance method).



CRS-146
sion House Senate Comments
dification of Credit forSec. 1305. H.R. 6 would make the §29No provision.Current IRC §29 provides a $3 tax credit (in 1979
cing Fuel From atax credit part of the general business taxdollars) for each barrel (or equivalent) of fuels
nconventional Source credit under IRC§38.produced or mined from unconventional sources,
and sold to independent parties in an arms-length
transaction. For most fuels, the credit ended in
2002 for facilities and mines placed in service by
the end of 1992; for biogases and synfuels, the
credit ends in 2007 for facilities placed in service
by June 30, 1998. No credit is available for
facilities placed in service after these cut-off dates
(which apply to different fuels). The credit is
phased out when oil prices exceed certain limits
iki/CRS-RL33006(currently $49.75/barrel). The credit in 2004 was
g/w$6.56/barrel of oil equivalent, which is equivalent
s.orto $1.16/mcf of gas. Most of the benefits from this
leaktax credit have accrued to coalbed methane and to
other unconventional fossil gases, and more
://wikirecently to coal, due to the way synfuels are
httptreated (see CRS Report 97-679 E). The §29 tax
credit is limited to the excess of the regular tax
over the tentative minimum tax, and it may not be
carried forward or back to other taxable years.
ications to Special RulesSec. 1306. The House provision wouldNo provision.Contributions into a nuclear decommissioning
r Nuclear Decommissioningrepeal the requirement that a utility has tofund are tax deductible in the year made and as
sts be regulated under cost-of-service ratelong as the utility is regulated. Deductions are
regulations in order to qualify for thislimited to the lesser of the amounts relating to the
deduction. Thus, unregulated utilitiescost of service regulations or the IRS’s ruling
would also qualify. The bill also wouldamount. Moneys withdrawn from the fund are
repeal the current limitations regardingtaxable as income, and expenditures for
the magnitude of the decommissioningdecommissioning are deductible as costs on an
fund accumulations — a utility couldaccrual basis. Decommissioning funds may be
make contributions into the fund intransferred tax-free in connection with a change in



CRS-147
sion House Senate Comments
excess of the maximum amountownership of the nuclear facility to which they
established by the Internal Revenuerelate, but the transferee generally has to be a
Service in certain circumstances.regulated utility eligible to maintain such a fund.
In a deregulated and restructured industry,
ambiguity regarding the tax treatment of
decommissioning fund transfers may make such
transactions taxable [IRC§468A].
edit for Electricity ProducedNo provision.Sec. 1507. The Senate version of H.R 6No such credit is provided under current law.
Advanced Nuclear Powerpermits a taxpayer producing electricity
at a qualifying advanced nuclear power
facility to claim a credit equal to 1.8¢ per
iki/CRS-RL33006kilowatt-hour of electricity produced for
g/wthe eight-year period starting when the
s.orfacility is placed in service. Up to 6,000
leakmegawatts of new nuclear capacity could
qualify for the credit.
://wiki
httpeatment of Income of ElectricNo provision.Sec.1505. Several special rules createIn general, cooperatives are exempt from tax
ives favorable tax treatment for rural electricalthough patrons must pay tax on any distributed
cooperatives, but this favorable taxprofits aspatronage dividends.” Rural electric
treatment ends on December 31, 2006. cooperatives are also exempt from tax and patrons
The Senate bill would permanentlydo not have to report dividends, provided that no
extend favorable tax treatment from (1)more than 15% of the cooperative’s income is
open access electric energy transmissionfrom services to nonmembers (at least 85% of the
or distribution services, (2) any nuclearcoop’s income must come from the sale of
decommissioning transaction, (3) anyelectricity to members).


asset exchange or conversion transaction
for purposes of the 85% test under
section 501(c)(12), and (4) load loss
transactions, which would be treated as
member income in determining whether a

CRS-148
sion House Senate Comments
rural electric cooperative satisfies the
85% test.
bitrage Rules Not to Apply toSec. 1307. Under the House bill, stateNo provision.State and local governments currently cannot use
epayment of Natural Gas and local governments would be exemptthe proceeds of tax-exempt bond issues to profit
from the arbitrage restrictions of the tax-from arbitrage (by pre-payment) on natural gas
exempt bond rules, thus allowing (withpurchases (IRC §148) — bond proceeds must be
some restrictions) such proceeds toused to finance qualifying public-purpose projects.
purchase a supply of natural gas for
customers of a public utility.
mination of Small RefinerSec. 1308. Under H.R. 6, the 50,000No provision.The percentage depletion allowance for oil and
iki/CRS-RL33006ception to Oil Depletionbarrel daily limit would be raised togas is 15% of revenues and is available only to
g/wwance 75,000, and it would apply to the averageover an entire taxable year, rather than onindependent producers and royalty owners. Independent producers can claim a higher
s.orany day during the taxable year.depletion rate (up to 25%, rather than the normal
leak15%) for up to 15 barrels per day (bpd) of oil (or
://wikithe equivalent amount of gas) from marginal wells(stripper oil/gas and heavy oil). For purposes of
httppercentage depletion, an independent oil producer
is a) one that, on any given day, does not refine
more than 50,000 barrels of oil, and b) does not
have a retail operation grossing more than $5
million/year [IRC§613A(d)].
vation and Energy Efficiency Provisions
sion House Senate Comments
edit for Residential EnergySec. 1311. Under the House bill, a 15%Sec. 1527. The Senate bill provides aThere are no tax subsidies, under current law, for
ficiency Property tax credit (up to $2,000) would be30% personal tax credit for the purchaseresidential applications of solar, wind, or other
provided for residential applications ofof qualified photovoltaic property, solarrenewable energy technologies. The 1978 energy



CRS-149
sion House Senate Comments
solar technologies to heat water, rooftopwater heating property, and fuel celltax credits for solar and wind established under
photovoltaics to generate electricity, andpower plants that are used exclusively forPresident Carters National Energy Act expired in
fuel cell property. The credit for fuel cellpurposes other than heating swimming1985.
property would be limited to pools and hot tubs. The maximum credit
$1,000/kilowatt (KW) of capacity.for each solar-based system would be
$2,000. The credit for any fuel cell may
not exceed $500 for each 0.5 KW of
capacity.
edit for Business InstallationSec. 1312. Under H.R. 6, a 15% taxSec. 1528. The proposal provides a 30%Various business tax subsidies are available to
Qualified Fuel Cells credit would be provided for businessbusiness energy credit for the purchase ofrenewable energy technologies under current law
investments in stationary fuel cells,qualified fuel cell power plants for[IRC §45,46,48, 613(e)]. A 10% tax credit is
iki/CRS-RL33006subject to a maximum credit ofbusinesses (not to exceed $500 for eachprovided for investment in solar equipment 1) to
g/w$1,000/KW of capacity.0.5 KW of capacity), and a 10% creditgenerate electricity (including photovoltaic
s.orfor the purchase of qualifying stationarysystems), 2) to heat or cool a structure, and 3) for
leakmicroturbine power plants (not to exceedprocess heat. Geothermal energy reservoirs
10% of the basis of the property or $200qualify for a 15% depletion allowance. Electricity
://wikifor each KW). A qualified fuel cellpower plant is an integrated systemfrom wind technologies receives the §45 taxcredit. The recovery period for renewable
httpcomprising a fuel cell stack assembly andtechnologies used to generate electricity is five
associated balance of plant componentsyears. Fuel cells do not qualify for tax subsidies.


that converts a fuel into electricity using
electrochemical means, and which has an
electricity-only generation efficiency of
greater than 30% and generates at least
0.5 KW of electricity. A qualified
stationary microturbine power plant is an
integrated system comprised of a gas
turbine engine, a recuperator or
regenerator, a generator or alternator, and
associated balance of plant components
which converts a fuel into electricity and
thermal energy.

CRS-150
sion House Senate Comments
siness Solar Investment TaxNo provision.Sec. 1529. The tax title would increaseCurrent law provides a 10% tax credit for
edit the investment tax credit for solarinvestment in solar equipment used to 1) generate
property used in a business from 10% toelectricity (including photovoltaic systems), 2)
30% for 2006 through 2011.used to heat or cool a structure, and 3) used for
process heat. Geothermal energy equipment also
qualifies for the 10% investment tax credit, and
geothermal reservoirs qualify for a 15% depletion
allowa nce.
ction for Energy EfficientNo provision.Sec. 1521.Expenditures on energyNo special deduction is currently provided for
mmercial Buildings efficiency property made with respect toexpenses incurred for energy-efficient commercial
a commercial building are tax deductiblebuilding property. Energy efficiency property that
iki/CRS-RL33006(rather than depreciable), subject to ais installed as part of a structure is depreciable
g/wlimit of $2.25 per square foot. Theover 39 years — it has the same recovery period
s.orproperty must reduce the buildingsas the structure.
leakannual energy costs by at least 50% as
compared to the standards for a reference
://wikibuilding established by a professionalengineering body. Commercial buildings
httpinclude residential rental property. The
Senate bill allows designers of
commercial buildings to claim this
deduction if the energy efficiency items
are installed in the buildings of
nontaxable entities.
duction for More Energy-No provision.Sec. 1523. The proposal provides (1) aNo special deduction is currently provided for
ficient Heating and Cooling$150 deduction for each advanced mainexpenses incurred for energy-efficient commercial
uipment Used in Business air circulating fan or a Tier 1 natural gas,building property. Energy efficiency property that
propane, or oil water heater, and (2) ais installed as part of a structure is depreciable
$900 deduction for more energy efficient over 39 years — it has the same recovery period
electric heat pump water heaters or as the structure.


geothermal heat pump. The proposal also

CRS-151
sion House Senate Comments
provides a deduction of as high as
$6,000 for energy efficient residential
rental building property, depending on
the percent reduction in energy costs
relative to the original condition of the
building. No deduction is allowed in the
case of energy cost savings of less than
20%.
edit for More Energy-No provision.Sec. 1524. The proposal provides (1) aThis incentive is the residential equivalent to the
ficiency Heating and Cooling$50 tax credit for each advanced main airone under Sec. 1523 that applies to businesses.
ipment Used in Homes circulating fan or a Tier 1 natural gas,No special tax credit is currently provided for
iki/CRS-RL33006propane, or oil water heater, and (2) aexpenses incurred for energy-efficient residential
g/w$300 credit for more energy efficient building property. Any subsidies provided by
s.orelectric heat pump water heaters or utilities, however, may be excluded from gross
leakgeothermal heat pump. The proposal alsoincome under IRC §136.
provides a credit of as high as $2,000 for
://wikienergy efficient residential rentalbuilding property, depending on the
httppercent reduction in energy costs relative
to the original condition of the building.
No deduction is allowed in the case of
energy cost savings of less than 20%.
edit for Energy EfficiencySec. 1317. Under H.R. 6, a tax credit ofNo provision.No special tax treatment is accorded homeowners
provements to Existing20% would be provided for expendituresfor purchases of materials and property that
mes on energy efficient envelope components enhances the energy efficiency of a personal
— more energy-efficient insulation,residence. Subsidies provided by utilities can be
windows/doors, roofs, and structuralexcluded from gross income (IRC§136). The
envelope components — retrofitted to1978 Energy Tax Act part of President Carter’s
existing homes that reduce heat loss (inNational Energy Act — provided conservation tax
winter) or heat gain (in summer) for acredits for certain types of energy efficiency
dwelling unit. The maximum lifetimeretrofits (insulation, storm windows and doors,



CRS-152
sion House Senate Comments
credit per dwelling unit would be $2,000.weatherstripping), but these expired in 1985.
Qualifying units and materials must meet
energy efficiency guidelines for such
components established by the
International Energy Conservation Code.
edit for Construction ofNo provision.Sec. 1522. The proposal would provide aUnder current law, a taxpayer may exclude from
ergy-Efficient New Homes credit to an eligible contractor of anincome the value of any subsidy provided by a
amount equal to the aggregate adjustedpublic utility for the purchase or installation of an
bases of all energy-efficient propertyenergy conservation measure. An energy
installed in a qualified newconservation measure means any installation or
energy-efficient home duringmodification primarily designed to reduce
iki/CRS-RL33006construction. The credit cannot exceedconsumption of electricity or natural gas or to
g/w$1,000 for a new home that has aimprove the management of energy demand with
s.orprojected level of annual heating andrespect to a dwelling unit (IRC § 136).
leakcooling costs that is 30% less (or $2,000
for costs of 50% less) than a comparable
://wikidwelling constructed in accordance withthe standards of chapter 4 of the 2003
httpInternational Energy Conservation Code
as in effect (including supplements) on
the date of enactment, and any applicable
federal minimum efficiency standards for
equipment.
edit for Energy EfficientNo provision.Sec. 1526. Increased production of moreUnder current law, a taxpayer may exclude from
pliances energy-efficient dishwashers, clothesincome the value of any subsidy provided by a
washers and refrigerators (above a basepublic utility for the purchase or installation of an
production level) would qualify for taxenergy conservation measure. An energy
credits ranging from $50 to $100conservation measure means any installation or
depending upon type of appliance, yearmodification primarily designed to reduce
of production, and its energy-efficiency. consumption of electricity or natural gas or to



CRS-153
sion House Senate Comments
The total credit for any manufacturer isimprove the management of energy demand with
subject to certain limits, including arespect to a dwelling unit (IRC § 136).
cumulative lifetime credit limit per
manufacturer.
mbined Heat and PowerNo provision.Sec. 1525. Combined heat and powerNo special tax subsidies are provided to combined
stems (“CHIPS) systems of at least 15 MW, and that meetheat and power (cogeneration) systems; the
certain efficiency standards, would berecovery period for purposes of depreciation is
treated as business energy property, thusgenerally 15 years.
qualifying for the 10% investment tax
credit. Additionally, the proposal
provides that systems whose fuel source
iki/CRS-RL33006is at least 90% bagasse and that would
g/wqualify for the credit but for the failure to
s.ormeet the efficiency standard are eligible
leakfor a credit that is reduced in proportion
to the degree to which the system fails to
://wikimeet the efficiency standard.
httpvanced Technology Vehicle Sec. 1316. The House bill would provideSec. 1531. The proposal would provide aUnder current law (IRC§179A), the incremental
edit a tax credit for advanced lean-burncredit for the purchase of a new qualifiedcosts of an alternative-fuel vehicle are tax
technology vehicles ranging from a basefuel cell motor vehicle, a new qualifieddeductible, up to $2,000 for a car, and up to
of $500 to $3,000 depending on fuelhybrid motor vehicle, and a new$50,000 for a truck or van (depending on weight
efficiency, and an additional tax credit ofqualified alternative fuel motor vehicle. class). This applies to vehicles powered by LPG,
$250-$550 depending on estimatedThe fuel cell vehicle credit ranges fromLNG, CNG, hydrogen, E85 and M85. The credit
lifetime fuel savings. $8,000 to $40,000 depending upon theis reduced by 25% in 2006, and is not available
weight class of the vehicle. In the case offor purchases after December 31, 2006. No credit
automobiles or light trucks, an additionalis currently available for advanced lean burn
credit amount that depends upon thevehicles, which are advanced technology vehicles
rated fuel economy of the vehiclethat are highly fuel efficient and generate lower
compared to a base fuel economy. Theemissions than standard internal combustion
credit for the purchase of a hybridengines.


vehicle is the sum of two components: a

CRS-154
sion House Senate Comments
fuel economy credit amount (which
ranges from $400 to $2,400 and varies
with the rated fuel economy of the
vehicle compared to a 2002 model year
standard) and a conservation credit based
on the estimated lifetime fuel savings of a
qualifying vehicle compared to a
comparable 2002 model year vehicle.
The credit for the purchase of a new
alternative fuel vehicle would be 50% of
the incremental cost of such vehicle, plus
an additional 30% if the vehicle meets
iki/CRS-RL33006certain emissions standards, but not more
g/wthan between $4,000 and $32,000
s.ordepending upon the weight of the
leak ve hi c l e .
://wikiedit for Electric Vehicles No provision.Sec. 1532. The proposal would repeal thephase-out of the credit under present law.Current law provides a 10% tax credit for the costof a qualified electric vehicle, up to a maximum
httpThe proposal also modifies present law tocredit of $4,000. The full amount of the credit is
provide for a credit equal to the lesser ofavailable for purchases prior to 2006. The credit is
$1,500 or 10% of the manufacturer’sreduced to 25% of the otherwise allowable
suggested retail price of certain vehiclesamount for purchases in 2006 and is unavailable
that conform to the Motor Vehicle Safetyfor purchases after December 31, 2006. A
Standard 500. For all other electricqualified electric vehicle generally is a motor
vehicles, a new tax credit would bevehicle that is powered primarily by an electric
provided, which ranges from $4,000 tomotor drawing current from rechargeable
$40,000.batteries, fuel cells, or other portable sources of
electrical current.
edit for Installation ofNo provision.Sec. 1533. The Senate bill would provideCurrent tax law allows a maximum lifetime tax
native Fuels Fuelinga 50% tax credit, through 2009 (2014 fordeduction, up to $100,000, for the costs of
ns hydrogen fuels), for the costs of clean-alternative fuel refueling property (excluding



CRS-155
sion House Senate Comments
fuel refueling equipment (subject to ainstallation costs). This deduction expires on
maximum tax credit of $30,000). It addsJanuary 1, 2007.
residential clean-refueling property to
qualifying property, subject to a
maximum credit of $1,000. The
definition of alternative fuel would
include fuel that is at least 20% biodiesel.
cise Tax Credits forNo provision.Sec.1534. The proposal would create twoThe Senate bill would apply the same tax
native Fuels new excise tax credits, the alternativetreatment — an excise tax credit, rather than an
fuel credit and the alternative fuelexcise tax exemption — to alternative special
mixture credit. The credits would bemotor fuels as is currently applied to ethanol fuel
iki/CRS-RL33006allowed against section 4041 liability.blends. (See: Alcohol Fuels Tax Incentives. CRS
g/wThe alternative fuel credit would be 50¢Report RL32979.)
s.orper gallon of alternative fuel or gasoline
leakgallon equivalents of non-liquid
alternative fuel sold by the taxpayer for
://wikiuse as a motor fuel in a highway vehicle.The alternative fuel mixture credit would
httpbe 50¢ per gallon of alternative fuel used
in producing an alternative fuel mixture
for sale or use in a trade or business of
the taxpayer.
come Tax Credits forNo provision.Sec. 1535. The proposal would extendThe current tax code provides an income tax credit
odiesel the income tax credit, excise tax credit,for pure biodiesel and biodiesel mixtures. The
and payment provisions throughpure biodiesel credit is 50¢ for each gallon of
December 31, 2010.biodiesel not in a mixture with diesel fuel (100%
biodiesel or B-100) and which during the taxable
year is (1) used by the taxpayer as a fuel in a trade
or business or (2) sold by the taxpayer at retail to a
person and placed in the fuel tank of such persons
vehicle. For agri-biodiesel, the credit is $1.00 per



CRS-156
sion House Senate Comments
gallon. The biodiesel mixture credit is 50¢ for
each gallon of biodiesel used by the taxpayer in
the production of a qualified biodiesel mixture.
For agri-biodiesel, the credit is $1.00 per gallon.
The Code also provides an excise tax credit for
biodiesel mixtures. Each of these credits expires
on January 1, 2007.
x Credit for Small ProducersNo provision.Sec. 1544. This provision would doublePresent law provides small fuel ethanol producers
Fuel Ethanol the capacity limit for a small fuel ethanol(ones that produce less than 15 million
producer from 30 million gallons to 60gallons/year, and have less than 30 mil. gal. in
million gallons. production capacity) with 10¢/gal. tax credit. The
iki/CRS-RL33006American Job Creation Act of 2004 (P.L. 108-
g/w357) allowed cooperatives to pass the producer
s.orcredit through to their patrons.
leakx Credit for Small ProducersNo provision.Sec. 1543. A 10¢ per gallon tax credit This is the biodiesel equivalent of the small
://wiki Biodiesel would be provided for small producers ofbio-diesel. Cooperative producers wouldethanol producer tax credit, discussed in theprevious section.
httpbe allowed to pass the credit through to
their patrons, just as in the small ethanol
producer tax credit.
ergy Management Devices No provision.Sec. 1553. The Senate bill would allow
taxpayers to depreciate qualified energy
management devices over three years. An
energy management device is a meter
used to measure and record electricity
data on a time-differentiated basis. The
proposal is effective for 2006 and 2007.



CRS-157
sion House Senate Comments
ral Commuter Fringe Benefits No provision.Sec. 1552. This would allow anUnder present law, certain fringe benefits
employee who lives in a rural area toprovided by employers (such as parking space,
exclude from income up to $50 perand metro passes) are excluded (up to certain
month for the cost of fuel related tolimits) from income for tax purposes.
commuting as part of a carpool
arrangement. The proposal would be
effective from the date of enactment
through Dec. 31, 2006.
trict Heating and CoolingNo provision.Sec. 1554. An exception would be
provided from the volume cap
restrictions for private activity bonds
iki/CRS-RL33006issued to finance local district heating
g/wand cooling facilities designed to access
s.ordeep water cooling sources for building
leakair conditioning. The aggregate
financing could not exceed $75 million
://wikifor each facility.
http
e Minimum Tax Relief
sion House Senate Comments
w Non-refundable PersonalSec. 1321. The alternative minimum taxNo provision.Under current tax law, most non-refundable
edit Allowed Against Regularlimitation would not apply to the newpersonal income tax credits are available only to
d Alternative Minimum Tax energy-efficiency tax credits proposedthe extent of the difference between the personal
under sections 1311 and 1317. and the tentative minimum tax liability — this
means that the alternative minimum tax could
limit the amount of the tax credit claimed. Such
limitation, if triggered, would reduce the incentive
effect of the credits, which in the case of any new



CRS-158
sion House Senate Comments
energy-efficiency credits that may be enacted
would reduce the incentives to invest in the
qualifying materials and property.
rtain Business Energy CreditsSec. 1322. H.R. 6 would expand the listNo provision.Under current tax law, businesses have access to a
ed Against Regular andof business energy tax credits for whichvariety of energy tax incentives, both for energy
inimum Taxes the tentative minimum tax is removed asconservation, renewable fuels (such as the §45 tax
a limitation on the amount of tax creditcredit), and for energy production (such as the
otherwise claimed.marginal oil and gas production tax credit, and the
enhanced oil recovery tax credit). For some of
these tax credits, the alternative minimum tax also
acts to limit the amount of a tax credit otherwise
iki/CRS-RL33006available under the income tax laws. This might
g/wreduce the incentive effects of energy tax credits.
s.or
leak
://wikier Fossil Fuels Incentives — Oil and Gas
http
sion House Senate Comments
pensing of Refinery Property,No provision.Sec. 1512. The proposal would provide aUnder present tax law, petroleum refining assets
erally temporary election to expense qualifiedare depreciated for regular tax purposes over a
refinery property — assets used in the10-year recovery period using the double
refining of liquid fuels: (1) with respectdeclining balance method. Petroleum refining
to the construction of which there is aassets are assets used for distillation, fractionation,
binding contract before January 1, 2008;and catalytic cracking of crude petroleum into
(2) which is placed in service beforegasoline and its other components. Present law
January 1, 2012; (3) which increases thealso provides a special expensing rule for small
capacity of an existing refinery by at leastrefiners for capital costs incurred in complying
5% or increases throughput of qualifiedwith Environmental Protection Agency sulfur
fuels (as defined in §29(c)) by at leastregulations.


25%; and (4) which meets all applicable

CRS-159
sion House Senate Comments
environmental laws in effect when the
property is placed in service. The
proposal also allows cooperatives to pass
through to patrons the deduction
permitted for qualified refinery property.
To the extent the deduction for qualified
refinery property is passed through to
patrons, the cooperative is denied the
deduction for such property or any
depreciation deductions under §167 or
§168 with respect to such property.
iki/CRS-RL33006pensing of Refinery PropertyNo provision.Sec. 1513. The proposal would allowTaxpayers generally may recover the costs of
g/wAs Sulfurcooperatives to pass through to patronsinvestments in refinery property through annual
s.orgulations for Diesel Fuel the deduction permitted under §179B fordepreciation deductions. In addition, the Code
leakcosts paid or incurred for the purpose ofpermits small business refiners to immediately
complying with the Highway Diesel Fueldeduct as an expense up to 75% of the costs paid
://wikiSulfur Control Requirements (HDFSCR)of the Environmental Protection Agency.or incurred for the purpose of complying with theHDFSCR of the EPA. The Code also provides that
httpTo the extent the deduction is passeda small business refiner may claim credit equal to
through to patrons, the cooperative is for each gallon of low sulfur diesel fuel
denied the deduction it would otherwiseproduced during the taxable year that is in
be entitled under §179B or forcompliance with the HDFSCR. The total
depreciation deductions under §167 orproduction credit claimed by the taxpayer is
§168 with respect to costs attributable tolimited to 25% of the capital costs incurred to
calculation of the patrons’ allowablecome into compliance with the EPA diesel fuel
§179B deduction. requirements.
hanced Oil Recovery (EOR)No provision.Sec. 1514. This would increase theCurrent IRC§43 provides a 15% tax credit
edit existing EOR credit to 20% with respectprovided for the costs of recovering oil by one of
to any new EOR project or substantialseveral selected tertiary recovery techniques. The
expansion of an existing EOR projectcredit is part of the general business credit and is
that occurs after the effective date andlimited by the minimum tax. No tax credits are



CRS-160
sion House Senate Comments
that uses carbon dioxide flooding orallowed against the minimum liability. Further,
injection as an oil recovery method. Thethe law states that the sum of allowable credits
increased credit is available only formust be less than the difference between the
qualified EOR projects that use carbonregular tax and the minimum liability (it cannot be
dioxide that is (1) from a man-made,larger than the difference between the two).
industrial source or (2) separated from
natural gas and natural gas liquids at a
natural gas processing plant.
duced Motor Fuels ExciseSec. 1313. Under the House bill, theNo provision.Diesel fuel used in highway vehicles is generally
x on Certain Mixtures of24.3¢ Highway Trust Fund (HTF)taxed at 24.4¢/gal., comprising the 24.3¢ HTF rate
el Fuel component of the tax on emulsifiedand the 0.1¢ leaking underground storage tank
iki/CRS-RL33006blends of diesel and water fuels would be(LUST) trust fund rate. Gasoline is taxed at
g/wreduced to 19.7¢, reflecting the lower Btu18.4¢/gal., comprising a 18.3¢ HTF rate and the
s.orvalue of such blended fuel. .01¢ LUST tax (IRC§4081). Other motor fuels
leakare taxed at various rates per gallon, with the rates
set so as to equate the tax on a Btu basis.
://wikiortization of Delay Rentals Sec. 1314. Under the House bill, delayNo provision.Under the uniform capitalization rules, delay
httprental payments would be deductedrental payments must be capitalized (via
evenly (amortizable) over two years. Thedepletion). All costs of abandoned properties are
same rule would apply to abandoneddeductible (IRC§263,263A).
properties.
ortization of Geological andSec. 1315. G&G costs for retainedNo provision.Under current law, geological and geophysical
ophysical Expenditures properties would be amortizable(G&G) costs for retained properties must be
(deducted evenly) over two years. Thecapitalized via depletion (IRC§263). Dry hole
same rule would apply to abandonedcosts are expensed (deducted in the year incurred).


properties.

CRS-161
es — Coal
sion House Senate Comments
edit for Investment in CleanNo provision.Sec. 1508. Two new tax credits would beA maximum of 6,500 megawatts of capacity
al Facilities created: 1) a 20% tax credit forwould qualify for the first credit; and a limit of $4
investments in selected types ofbillion of projects could qualify for the second tax
advanced clean coal technologies, suchcredit.
as integrated gasification combined
cycle, and 2) a 20% tax credit for
electricity generated from certain types of
gasification projects that convert coal,
biomass, petroleum residue, and other
iki/CRS-RL33006material into a synthetic gas. The projectswould also have to meet certification
g/wprocedures.
s.or
leakean-coal Bonds No provision.Sec. 1509. The proposal would create aCurrent law provides for a similar tax credit for
new category of tax credit bonds, “Cleanqualified zone academy bonds.”


://wikiEnergy Coal Bonds, which would give
httpthe investor a tax credit (rather than
interest-free income) determined by
multiplying the bonds credit rate by the
face amount on the holder’s bond. These
are bonds, the proceeds of which are used
to finance capital expenditures for
certified coal property,” defined as any
property that is part of a qualifying
advanced coal project certified by the
Secretary of Energy.

CRS-162
sion House Senate Comments
edit for Investment in CleanNo provision.Sec. 1511. The proposal would provide aPresent law does not provide a credit for
ke/Cogeneration20% investment tax credit for qualifiedinvestment in clean coke/cogeneration
ufacturing Facilities investments in clean coke/cogenerationmanufacturing facilities property.
depreciable property and tangible
personal property located in the United
States. Qualifying property would have
to meet certain emission limitations and
be used for the manufacture of
metallurgical coke or for the production
of steam or electricity from waste heat
generated during the production of
metallurgical coke.
iki/CRS-RL33006
g/wedit for Coal Produced onNo provision.Sec. 1548. This would provide a taxNo special credits for coal production on Indian
s.ordian Lands credit of $1.50/ton of coal produced onlands is provided under current law. The §45
leaklands owned by “Indian Tribes. Therenewable electricity tax credit law provides a
credit would rise to $2.00/ton beginning$4.37/ton tax credit for refined coal. Also, coal
://wikion January 1, 2010. production is assessed a federal Black LungExcise tax and an Abandoned Mine Land
httpReclamation fee. (See: The Black Lung Excise
Tax on Coal. CRS Report 21935.)
able Energy Supply
sion House Senate Comments
newable ElectricityNo provision.Secs. 1501, 1502,1503. The credit wouldPresent law provides a tax credit for the
oduction Tax Credit be expanded to include electricityproduction of electricity from wind, biomass,
produced from free-flowing ocean watergeothermal, and other sources. The credit may not
derived from ocean currents or waves,be allocated from the producer to another party.


ocean thermal energy, or other free-

CRS-163
sion House Senate Comments
flowing water. In the case of an
agricultural cooperative, the provision
would allow the §45 tax credit to be
passed through the cooperative to its
patrons.
ean Renewable Energy Bonds No provision.Sec.1504. The proposal would create aPresent law allows interest on state and local
new category of tax-exempt bonds: thosebonds to be excluded from gross income if the
whose proceeds are used to financeproceeds are used for governmental purposes or
capital expenditures for facilities thatthe bonds are repaid with tax revenues.
qualify for the §45 renewable electricity
tax credit. This proposal would also
iki/CRS-RL33006exempt from state private activity bond
g/wvolume caps funding for certain facilities
s.orused to cool buildings using ocean water.
leakedit for EnvironmentallyNo provision.Sec. 1549. The Senate bill would provideNo tax credit, or other special tax preference, has
://wikiean Wood Stoves a $500 tax credit for each existingconventional wood stove, used in non-ever been provided to wood burning stoves of anytype. There were efforts to have such stoves
httpattainment areas, that is replaced by onequalify for a residential energy tax credit under the
that complies with EPAs particulateEnergy Tax Act of 1978 (P.L. 95-618), but these
matter standards.were unsuccessful.
es
sion House Senate Comments
cling Tax Credit No provision.Sec.1545. This would provide a 15%Recycling equipment qualified for a similar tax
investment tax credit for recyclingcredit under the Energy Tax Act of 1978, enacted
equipment. Qualifying equipment as part of President Carter’s National Energy Plan.
includes equipment used to recycleBut these expired at the end of 1982.


electronic waste.

CRS-164
sion House Senate Comments
pansion of Research Credit No provision.Sec. 1542. Amounts paid for energyCurrently, research — this applies to energy
research would qualify for a 20% taxresearch as well — qualifies for an incremental
credit.credit over a base level of expenditures.
emption from the 12% RetailNo provision.Sec. 1550. Bulk beds under 26 feet inThis retail excise tax is one of the six taxes (and
cise Tax on Tractors/Trailers length that are affixed on farm trucksone of three non-fuel taxes) that fund the Highway
would be exempt from the 12% retailTrust Fund. However, most of the HTF revenue
excise tax on truck trailers, truck bodies,(over 90%) comes from the fuel taxes, mostly
and truck chassis.from the gasoline tax.
iki/CRS-RL33006
g/w
s.orsion House Senate Comments
leak
eatment of Aviation-GradeNo provision.Sec. 1561. The bill would eliminateKerosene used in commercial aviation is taxed at
://wikisene reduced-tax or tax-free removals of4.4¢/gallon; non-commercial aviation kerosene is
httpaviation-grade kerosene in commercialand noncommercial aviation.taxed at 21.9¢/gallon. This provision furtherrestricts the rules regarding tax-free removals
from refineries and terminals and exemptions for
aviation fuel that began under the American Jobs
Creation Act of 2004 (P.L. 108-357).
eal of the Ultimate VendorNo provision.Sec. 1562. This would repeal the law that
fund on Diesel Used instates that refunds of overpaid excise
rming taxes on diesel (and kerosene) used in
farming go to the ultimate vendor of the
fuel.



CRS-165
sion House Senate Comments
funds of Fuel Excise TaxesNo provision.Sec. 1563. In the case of refunds of fuelThis provision was in the American Jobs Creation
Exempt Sales of Fuel byexcise taxes where the tax-exempt fuelTax Act of 2004, but dropped in conference.
edit Card was purchased by credit card, the person
extending the credit card to the ultimate
purchaser would be treated as the
ultimate vendor for purposes of the
refund.
ditional Requirements forNo provision.Sec. 1564. Volunteer fire departments
empt Fuel Purchases would be added to the list of tax-exempt
uses of fuel, but the types of non-profit
educational institutions qualified to
iki/CRS-RL33006purchase fuel tax-free would be
g/w restricted.
s.oristration in the Event of aNo provision.Sec. 1565. In the event of a change in
leaknge in Ownership ownership in the company that is
://wikiresponsible for registering with theInternal Revenue Service because it
httphandles and owns fuel on which excise
taxes are assessed, the original
registrant/owner (who sells his ownership
interest) has to reregister.
cise Tax Treatment of Deep-No provision.Sec. 1566. Deep-draft ocean goingOcean-going, deep draft vessels are exempt from
t Vessels vessels that use taxable fuel would havethe inland waterways excise tax, the 20.1¢/gallon
to be registered. Also, this section wouldrate of tax on fuel used in barges and which funds
clarify that the operator of deep-draftthe Inland Waterways Trust Fund (the 0.1¢
vessels that ship fuel in bulk to terminalscomponent helps fund the Leaking Underground
or refineries would not have to beStorage Tank Trust Fund).


registered.

CRS-166
sion House Senate Comments
nciliation of Loaded FuelNo provision.Sec. 1567. The bill would require the
rgo to Entered Fuel Cargo Secretary of the U.S. Department of
Homeland Security to establish a system
by which data on shipments of taxable
gasoline, diesel, and other fuels, is shared
between the U.S. Customs and Border
Protection Service and the Internal
Revenue Service.
xation of GasolineNo provision.Sec. 1568. Senate H.R. 6 would impose
endstocks and Kerosene tax on the non-bulk transfer or
importation of gasoline blend-stocks.
iki/CRS-RL33006Also the definition of kerosene for
g/wpurposes of the 24.4¢/gallon excise tax
s.orwould include mineral spirits.
leakxation of Fuel on VehiclesNo provision.Sec. 1569. The bill would clarify that the
://wikiiven Out of the United States current excise tax exemption on fuelexported out of the United States does
httpnot include fuel inside the fuel tank of a
vehicle that is shipped or driven out of
the United States.
nalties for Adulterated DieselNo provision.Sec. 1570. The bill would impose
penalties on any person that knowingly
sells or transfers any diesel fuel that does
not meet EPA regulations.
cise Tax on Oil to Fund theNo provision.Sec. 1571. The Senate bill wouldA 5¢ per barrel excise tax financed the Oil Spill
ill Liability Trust Fund reinstate the 5¢ tax on imported andLiability Trust Fund prior to its expiration. The
domestic oil and petroleum products totax lapsed temporarily because revenues in the
fund the Oil Spill Liability Trust Fund.Trust Fund had exceeded $1 billion, the threshold



CRS-167
sion House Senate Comments
for the tax, but was reimposed on July 1, 1994.
The tax expired on December 31, 1994.
cise Tax on Fuels to Fund theNo provision.Sec. 1572. The Senate bill wouldAll motor fuels with the exception of propane and
aking Underground Storagereinstate the 0.1¢/gallon LUST Funddyed diesel fuel are assessed a 0.1¢/gallon LUST
nk Trust Fund excise tax on fuels through March 31,fund component, in addition to other components
2011, and extend it to dyed diesel fuel. such as the Highway Trust Fund (or other trust
fund components) excise taxes. The LUST
component expired on April 1, 2005.
cise Tax on Highway TiresNo provision.Sec. 1573. The excise tax on super singleFor highway tires with a rated load capacity
tires would be raised to/10 lbs ofexceeding 3,500 lbs., the IRC imposes an excise
iki/CRS-RL33006excess load capacity over 3,500 lbs. Atax of 9.45¢/10lbs of excess over 3,500 lbs. But
g/wsuper single tire” is redefined to be asingle tire greater than 17.5 inches insuper single tires are currently taxed at the rate of4.725¢/10 lbs of excess load capacity exceeding
s.orcross section width designed to replace3,500 lbs.
leaktwo tires in a dual fitment.
://wiki
http
ovisions
sion House Senate Comments
al Academy of SciencesNo provision.Sec. 1551. Within 60 days afterExternalities (either positive or, in the case of
y enactment of H.R. 6, the Nationalenergy, negative externalities) are non-market
Academy of Sciences shall conduct acosts that spillover from private agents
study of the external costs (and benefits) (consumers and producers) to a market transaction
— health, environmental, energyonto third parties. Without some type of
security, etc. — that may result form thegovernment intervention (typically taxes or
consumption and production of energy.subsidies), the presence of externalities is one
source of market failure (in the case of energy,
this is a major source of market failure), i.e., the



CRS-168
sion House Senate Comments
failure to achieve efficiency in resource allocation
and use. (See: Energy Tax Policy: An Economic
Analysis. CRS Report 30406.)
Miscellaneous
Provisions
sion House Senate Comments
iki/CRS-RL33006ntinuation of TransmissionSec. 1441. This provision would requireNo similar provision.On August 28, 2003, the Secretary of Energy
g/writy Order the order to remain in effect unlessissued Order No. 202-03-2, allowing the Cross
s.orrescinded by federal statute. Sound Cable between Connecticut and LongIsland to begin transmitting electric power.
leak(See Appendix I for more information)
://wikiview of AgencySec. 1442. This section would amend theNo similar provision.This fast-tracking measure would limit the amount
httpminations on Gas Projects Natural Gas Act, giving the D.C. Circuitof time taken by other agencies after FERC had
Court of Appeals exclusive jurisdictionissued a certificate for a pipeline project.


over disputes involving “unreasonable
delay of a natural gas pipeline project
certificated by FERC. Unreasonable
delay would mean the failure of a
permitting agency to take action within a
year after the date of filing for the permit
in question, or within 60 days after the
issuance of a FERC certificate. There is
no explicit time-line in existing law for
issuance of ancillary permits and
licenses, or requirement to consolidate
authority in one court.

CRS-169
sion House Senate Comments
ment Dates for DownwindSec. 1443. This section would extendNo similar provision.Under the 1990 Clean Air Act Amendments (P.L.
ne Nonattainment Areas Clean Air Act deadlines for areas that101-549), ozone nonattainment areas were
have not attained ozone air qualityclassified in one of five categories: Marginal,
standards if upwind areassignificantlyModerate, Serious, Severe, or Extreme. Areas
contribute” to their nonattainment. with higher concentrations of the pollutant were
-given more time to reach attainment. In return for
Section 1443 would roll backthe additional time, they were required to
reclassifications that occurred after Aprilimplement more stringent controls on emissions.
1, 2003, and would extend attainmentFailure to reach attainment by the specified
deadlines in areas affected by upwinddeadline was to result in reclassification of an area
pollution to the date on which the lastto the next higher category and the imposition of
reductions in pollution necessary formore stringent controls. Areas such as Dallas-Fort
iki/CRS-RL33006attainment in the downwind area areWorth, for example, classified as Serious, were
g/wrequired to be achieved in the upwindrequired to reach attainment by 1999. If they did
s.orarea.not do so, the law required that they be
leakreclassified (or “bumped up”) to the Severe
category, with a new deadline of 2005, and more
://wikistringent controls. The specific deadline date is
httpopen for interpretation. Under EPAs overturned
policy, areas were given extensions no longer than
the attainment or compliance deadline in the
upwind area (generally 2004, 2005, or 2007). The
language of Section 1443 appears to give EPA
flexibility to extend the deadlines beyond those
dates, however. It also would apply to the
agencys new eight-hour ozone standard
implemented last year, making many additional
areas eligible for extensions.
ergy Production Incentives Sec. 1444. States would be allowed toNo similar provision.


provide taxpayers that generate
electricity from selected types of energy,
or produce ethanol fuel, credits against

CRS-170
sion House Senate Comments
any state taxes or fees owed to the state
either under a state law or federal law
without violating the commerce clause of
the U.S. Constitution. The provision
would apply to production in the state of
1) electricity from coal mined in the state
and used in a facility, if such production
meets all applicable federal and state
laws and if such facility uses scrubbers or
other forms of clean coal technology, 2)
electricity from a renewable source such
as wind, solar, or biomass, or 3) ethanol.
iki/CRS-RL33006Any action taken by a state in accordance
g/wwith this section with respect to a tax or
s.orfee payable, or incentive applicable, for
leakany period beginning after the date of the
enactment of this Act would be
://wikiconsidered to be a reasonable regulation
httpof commerce, and not be considered to
impose an undue burden on interstate
commerce or to otherwise impair,
restrain, or discriminate against interstate
commerce.
gulation of Certain Oil UsedSec. 1446. Under this section, utilitiesNo similar provision.


ransformers would not be required to develop a “Spill
Prevention, Control, and Countermeasure
Plan” for soy bean oil use in transformers
as regulated by the Environmental
Protection Agency under 40 CFR Part
112.12-15.

CRS-171
sion House Senate Comments
ssessments Sec. 1447. The Energy Policy Act ofNo similar provision.
1992 would be amended to require that
federal agencies conducting risk
assessments of energy-related
technologies use sound and objective
scientific practices that consider the best
available science.
ygen-fuel Sec. 1448. DOE would be directed toNo similar provision.
create a program for oxygen-fuel
systems, in which pure oxygen is
substituted for air in high-temperature
iki/CRS-RL33006boilers of industrial and electric utility
g/wsteam generators. If feasible, the
s.orprogram would include two small (10 to
leak50 megawatt) units, one retrofit and one
new; and two large (100 megawatts or
://wikilarger) units, one retrofit and one new.
httptrochemical and Oil RefinerySec. 1449. The Secretary of EnergyNo similar provision.


Health Assessment would be charged to study the health
impacts of living near petrochemical and
oil refining plants. In designing the study,
the Secretary would consult with the
National Cancer Institute and other
governmental bodies having expertise.
The Secretary would have to transmit the
report to Congress within six months of
enactment. Such sums as necessary
would be authorized for this study.

CRS-172
sion House Senate Comments
ited States-Israel Cooperation Sec. 1450. This provision would requireSec. 982. Similar provision.The United States and Israel have an agreement
the Secretary of Energy to submit reportsto establish a framework for collaboration
to the relevant House and Senatebetween the two nations for collaboration on
Committees on past, current, and futureenergy research and development activities. The
activities and projects that are attributableagreement, which went into effect in February
to the U.S.-Israel energy R&D2000, was automatically extended (pursuant to
agreement.terms of the original agreement) in early 2005 for
an additional five years.
rbon-Based Fuel CellSec. 1451. The Secretary of EnergyNo comparable provision.
velopment would be authorized to make a single
grant for the design and fabrication of a
iki/CRS-RL330065-kilowatt prototype direct coal fuel cell.
g/w
s.ornal Priority ProjectSec. 1452. This section, added as a floorSec. 232. The Senate provision is
leaksignation amendment (H.Amdt. 91), wouldidentical in many respects. However, it
://wikiestablish a presidential National PriorityProject designation for organizationsdiffers somewhat in the definitions ofcategories of projects, allows fuel cells
httpwith projects certified by the Secretary ofand photovoltaic projects to be as small
Energy as advancing renewable energyas 3 megawatts, identifies a role for
technology.agency personnel, and authorizes
appropriatio ns.
ali CommissionNo provision.Sec. 325. Funding would be authorizedThe Denali Commission Act of 1998 (42 USC
for the Denali Commission to carry out3121) established the commission to ensure cost-
energy programs in Alaska, includingeffective delivery of federal services and support
development of alternative energy,economic development in Alaska.


construction of electricity transmission
infrastructure, replacement and cleanup
of fuel tanks, and coal gasification.

CRS-173
Ethanol and Motor Fuels
al Provisions
sion House Senate Comments
newable Content of MotorSec. 1501. A new §211(o) would beSec. 211. Significant differences fromThe Clean Air Act Amendments of 1990
icle Fuel added to the Clean Air Act. Beginning inthe House version: It would require 4.0established the Reformulated Gasoline (RFG)
2005, motor vehicle fuel must contain abillion gallons of renewable fuel to beprogram. Among its provisions is a requirement
certain amount of renewable fuel. Inused in 2006, increasing to 8.0 billionthat RFG contain oxygen. The two main ways to
2005, 3.1 billion gallons of renewablegallons in 2012. After 2012, themeet the requirement are the use of MTBE and
fuel would be required to be soldminimum requirement would be the ratioethanol. However, MTBE (methyl tertiary butyl
annually, increasing to 5.0 billion gallonsof renewable fuel to gasoline in 2012, butether) has been found to contaminate
iki/CRS-RL33006in 2012. After 2012, the percentage ofEPA would have the authority togroundwater, and there is interest in banning the
g/wrenewable fuel required in the motor fuelestablish a higher requirement. A gallonsubstance (see Sec. 1504 of the House bill).
s.orpool would be required to remain theof cellulosic ethanol would count as 2.5Because some states have acted to limit the use of
leaksame as the percentage required in 2012. gallons of renewable fuel (1.5 gallons inMTBE, and because of the potential federal ban,
This standard would largely be met bythe House version). Further, after 2012,there is interest in eliminating the oxygen standard
://wikiethanol, but other renewable fuels, sucha minimum of 250 million gallons ofas well (see Sec. 1506).
httpas biodiesel, would be eligible. Ethanolcellulosic ethanol would be required in-
from cellulosic biomass (including fromfuel annually (and would not be subjectThe ethanol industry has benefitted significantly
wood and agricultural residue, animalto the increased credit for cellulosicfrom the oxygen requirement, and some are
waste, and municipal solid waste) wouldethanol).concerned about the future of ethanol in the
be granted extra credits toward fulfillingabsence of the requirement. Further, proponents
the programs requirements (1 gallon ofof the fuel see ethanol use as a way to limit
cellulosic ethanol would count as 1.5petroleum consumption and dependence on
gallons of renewable fuel). Further, theforeign oil. Thus, the interest in establishing a
bill would establish a credit tradingrenewable fuels standard. However, opponents of
program to provide flexibility to refinersethanol have raised concerns that the fuel is too
and blenders.costly, that the energy efficiency of the ethanol
fuel cycle is questionable, and that the potential
for groundwater contamination by ethanol-
blended fuels has not been fully studied.



CRS-174
sion House Senate Comments
e Harbor Sec. 1502(a). Renewable fuels, MTBE,Sec. 211(a). Renewable fuels used orThe House bill sets an effective date of September
or fuels blended with renewable fuels orintended to be used as a motor vehicle5, 2003, for the safe harbor, rather than the date of
MTBE could not be deemed a “defectivefuel and any motor vehicle fuelenactment. This effective date would protect oil
product.” Applicability of this “safecontaining renewable fuel could not beand chemical industry defendants from defective
harbor” would be conditioned upon adeemed defective in design orproduct claims in about 150 lawsuits that were
partys compliance with EPA regulationsmanufacture. The termrenewablefiled in 15 states after that date. (Source:
issued under §211 of the Clean Air Actfuels would be defined by aEnvironmental Working Group.Communities
and any applicable requests forcorresponding amendment to § 211 of theThat Have Filed MTBE Lawsuits Against Oil
information. Assuming theseClean Air Act. Further, ethers, includingCompanies.”)
qualifications were met, any entity withinMTBE, would not be covered by the[http://www.ewg.org/reports/oilandwater/lawsuits.
the product chain, from manufacturers tosafe harbor.” Applicability of thephp]
retailers, would be shielded fromprovision would also be conditioned
iki/CRS-RL33006products liability-based lawsuits, theupon a partys compliance with EPA
g/wapproach that has been taken in most ofregulations issued under §211 of the
s.orthe suits filed. Liability based on otherClean Air Act and any applicable
leakgrounds, such as negligence or breach ofrequests for information. Unlike the
contract, to the extent it applies, wouldHouse bill, this provision would not
://wikinot be affected.apply retroactively and pertains only to
http-claims filed on or after the date of the
Sec. 1502(b). The provision would applyprovisions enactment.
retroactively to claims filed on or after
September 5, 2003, thereby nullifying
numerous pending lawsuits.
BE Transition Assistance Sec. 1503. Would amend §211(c) of theSec. 223(c). Similar provision, except
Clean Air Act to authorize $2 billionthat $1 billion in grants would be
($250 million in each ofauthorized ($250 million in each of
FY2005-FY2012) for grants to assistFY2005-FY2008). Eligible facilities are
merchant U.S. producers of MTBE inthose that produced MTBE for
converting to the production ofconsumption in air quality nonattainment
iso-octane, iso-octene, alkylates,areas after the date of enactment.


renewable fuels, and other fuel additives.
Eligible facilities would be those that

CRS-175
sion House Senate Comments
produced MTBE before April 2003 and
ceased production after the date of
enactment. The Secretary of Energy
could make grants available unless EPA
determined that such additives may
reasonably be anticipated to endanger
public health or the environment.
n on the Use of MTBE Sec. 1504. Not later than December 31,Sec. 223(c). Similar provision, except
2014, the use of MTBE in motor vehiclethat the prohibition amends Section
fuel would be prohibited except in states211(c) of the Clean Air Act and would
that specifically authorize it. EPA maytake effect not later than 4 years after the
iki/CRS-RL33006allow MTBE in motor vehicle fuel indate of enactment.
g/wquantities up to 0.5% in cases the
s.orAdministrator determines to be
leakappropriate.
://wikiesidential Determination Sec. 1505(b). Would allow the Presidentto make a determination, not later thanNo comparable provision.
httpJune 30, 2014, that the restrictions on the
use of MTBE shall not take place.
al Academy of SciencesSec. 1505(a). Separately, this wouldNo comparable provision.


view require the National Academy of
Sciences to conduct a review of MTBEs
beneficial and detrimental effects on
environmental quality or public health or
welfare, including costs and benefits.
The review would be required to be
completed by May 31, 2014.

CRS-176
sion House Senate Comments
otection of Water Quality No comparable provision.Sec. 223(c). This would amend sectionCurrently, the Clean Air Act grants EPA the
211(c) of the Clean Air Act to authorizeauthority to regulate fuels only if they contribute
the EPA Administrator to regulate,to air pollution.
control, or prohibit the manufacture,
introduction into commerce, offering for
sale, or sale of any fuel or fuel additive
for use in a motor vehicle or engine if it
causes or contributes to water pollution.
ygen Content Sec. 1506(a). Would amend §211(k) ofSec. 224(a). Same as House provision.
the Clean Air Act to eliminate the
requirement that reformulated gasoline
iki/CRS-RL33006contain at least 2% oxygen. The
g/wprovision would take effect 270 days
s.orafter enactment, except in California,
leakwhere it would take effect immediately
upon enactment.
://wikixic Air Pollutants Sec. 1506(b). Would amend §211(k)(1)Sec. 224(b). Similar anti-backslidingThis provision is intended to prevent backsliding,
httpof the Clean Air Act to require that eachprovision, except that the base years forsince the toxic emission reductions actually
refinery or importer of gasoline maintaindetermining allowable emissions areachieved in those years exceeded the regulatory
the average annual reductions in2001 and 2002. Also would provide anrequirements.
emissions of toxic air pollutants achievedexception for California, which has more
by the reformulated gasoline it producedstringent state requirements.
or distributed in 1999 and 2000. Would
establish a credit trading program for
emissions of toxic air pollutants.
rce Air Toxics Sec. 1506(b). Would require EPA toSec. 224(b). Similar provision, but the
promulgate final regulations to controldeadline for promulgation would be July
hazardous air pollutants from motor1, 2007. Also would provide that if the
vehicles and their fuels by July 1, 2005.promulgated regulations achieve and
maintain greater overall reductions in



CRS-177
sion House Senate Comments
emissions of air toxics from RFG than
what would be achieved under the
anti-backsliding requirements described
above, the anti-backsliding requirements
would be null and void.
nsolidation of RFGSec. 1506(c). Would eliminate the lessSec. 224(d). Identical provision.
quirements stringent requirements for volatility
applicable to reformulated gasoline sold
in volatile organic compound (VOC)
Control Region 2 (northern states) by
applying the more stringent standards of
iki/CRS-RL33006VOC Control Region 1(southern states).
g/wblic Health andNo comparable provision.Sec. 225. Would amend §211(b) of the
s.orvironmental Impacts of FuelsClean Air Act to require manufacturers
leakd Fuel Additives of fuels and fuel additives to conduct
://wikitests of their health and environmentalimpacts (currently, these tests are at
httpEPAs discretion and do not include
environmental effects). Also would
requires EPA, within 2 years, to conduct
a study of the health and environmental
effects of MTBE substitutes, including
ethanol-blended RFG.
alyses of Fuel Changes Sec. 1507. A new §211(p) would beSec. 226. Similar to the House provision,
added to the Clean Air Act. Within fourexcept that the Senate version would also
years of enactment, the Administrator ofrequire EPA to publish, within one year
the Environmental Protection Agencyof enactment, a study on the effects of
would be required to publish a draftethanol content on fuel permeation
analysis of the effects of the fuelsthrough vehicle fuel systems.


provisions in the Act on air pollutant

CRS-178
sion House Senate Comments
emissions and air quality. Within five
years of enactment, the Administrator
would be required to publish a final
version of the analysis.
newable Fuels Surveys Sec. 1508. Would require DOE to collectSec. 213. Similar to House provision,
and publish monthly survey data on theexcept that DOE must also collect and
production, blending, importing, demand,publish data on production costs.
and price of renewable fuels, both on a
national and regional basis.
Sec. 1501(c). Not later than December 1,Sec. 212(b). Substantially similar to
iki/CRS-RL330062006, and annually thereafter, the EPAHouse version.
g/wAdministrator would be required toconduct a survey to determine the market
s.orshares of conventional gasoline and RFG
leakcontaining ethanol and other renewable
://wikifuels in conventional and RFG areas ineach state.
http
ucing the Proliferation ofSec. 1509. A new provision would beNo comparable provision.


el Blends added to §211(c)(4) of the Clean Air Act.
The EPA Administrator could not
approve a control or prohibition
respecting the use of a fuel or fuel
additive unless he found that it would not
cause fuel supply or distribution
interruptions or have a significant
adverse impact on fuel producibility in
the affected area or contiguous areas.
Within 18 months of enactment, the
Administrator would be required to
submit a report to Congress on the effects

CRS-179
sion House Senate Comments
of providing a preference for RFG or
either of two low volatility (7.0 and 7.8
Reid Vapor Pressure) gasolines.
el System RequirementsSec. 1510. The EPA Administrator andSec. 229. Substantially similar to the
monization Study the Secretary of Energy would beHouse version, except that the report
required to conduct a study of federal,would be required to include the effects
state, and local motor fuels requirements,on sensitive populations, and the report
analyzing the effects of various standardswould be required to be submitted to
on consumer prices, fuel availability,Congress by June 1, 2008.
domestic suppliers, air quality, and
emissions. Further, they would be
iki/CRS-RL33006required to study the feasibility of
g/wdeveloping national or regional fuel
s.orstandards, and to provide
leakrecommendations on legislative and
administrative actions to improve air
://wikiquality, increase supply liquidity, andreduce costs to consumers and producers.
httpA report would be required to be
submitted to Congress by December 31,
2009.
mmercial Byproducts FromSec. 1511. The Secretary of EnergySec. 212(c). The Secretary of Energy
nicipal Solid Waste andwould be required to establish a loanwould be required to establish loan
losic Biomass Loanguarantee program for the construction ofguarantees for no more than four projects
arantee Program facilities to produce fuel ethanol andto commercially demonstrate the
other commercial byproducts fromfeasibility and viability of converting
municipal solid waste and cellulosiccellulosic biomass or sucrose into
biomass. Applicants for loan guaranteesethanol. Loan guarantees could cover a
would be required to provide assurancemaximum amount of $250 million per
of repayment (at least 20%) in the formproject, but in no case for more than 80%
of a performance bond, insuranceof a project’s estimated cost, as well as



CRS-180
sion House Senate Comments
collateral, or other means. The sectionup to 80% of project costs in excess of
would authorize such sums as may bethe estimate. No new funding would be
necessary for the program.authorized.
nversion Assistance forSec. 1512. DOE would be allowed toSec. 212(f). Similar to the House
llulosic Biomass, Waste-provide grants to help build productionversion, except that only facilities that
rived Ethanol, Approvedfacilities. To qualify, the ethanol must beproduce ethanol (and not other renewable
newable Fuels produced from cellulosic biomass,fuels) from municipal waste or
municipal solid waste, wood residues,agricultural residue may qualify. A total
agricultural waste, or agriculturalof $650 million would be authorized
byproducts. A total of $750 millionbetween FY2005 and FY2006.
would be authorized to be appropriated
iki/CRS-RL33006between FY2005 and FY2007.
g/wsource Center No comparable provision.Sec. 212(d). Would authorize $4 million
s.orfor the Mississippi State University and
leakOklahoma State University for each of
://wikiFY2005-FY2007 for a resource center tofurther develop bioconversion
httptechnology using low-cost biomass for
the production of ethanol.
newable Fuel ProductionNo comparable provision.Sec. 212(d). Would authorize $25
search and Developmentmillion in each of FY2006-FY2010 for
ts research, development, and
implementation of renewable fuel
production technologies in RFG states
with low rates of ethanol production.
ending of CompliantSec. 1513. This provision would allowSec. 224(c). Retailers would beCurrently, retailers must drain their tanks before
formulated Gasolines reformulated gasoline (RFG) retailers topermitted to blend batches ofswitching from ethanol-blended RFG to non-
blend batches with and without ethanolreformulated gasoline with and withoutethanol RFG (or vice versa).


as long as both batches were compliantethanol as long as the resulting fuel is

CRS-181
sion House Senate Comments
with the Clean Air Act. In a given year,compliant with the Clean Air Act. There
retailers would be permitted to blendwould be no limitation on the number of
batches over any two 10-day periods inbatches or duration of blending.
the summer months.
vanced Biofuels TechnologyNo comparable provision.Sec. 230. Would authorize $110 million
ogram in each of FY2005 through FY2009 for
projects to demonstrate new technologies
for the production of biofuels. The
program would fund at least 4 different
technologies for producing cellulosic
biomass ethanol and at least 5
iki/CRS-RL33006technologies for the production of
g/wvalue-added biodiesel fuel coproducts.
s.orPreference would be given to projects
leakthat enhance geographical diversity of
alternative fuel production and to projects
://wikiwith feedstocks used in 10 percent or lessof annual ethanol and biodiesel
http productio n.
aste-Derived Biodiesel No comparable provision.Sec. 234. Would amend the definition ofCurrent law defines biodiesel as a “diesel fuel
biodiesel” under the Energy Policy Actsubstitute produced from nonpetroleum renewable
of 1992 (42 U.S.C. 13220) to explicitlyresources.” Agricultural and municipal wastes are
include biodiesel derived from animalgenerally considered to be renewable resources for
wastes, municipal solid waste, andfuel production.


wastewater.

CRS-182
ground Storage Tank Compliance
sion House Senate Comments
ort TitleSec. 1521. This subtitle may be cited asNo similar provision.
the “Underground Storage Tank
Compliance Act of 2005.”
aking Underground StorageSec. 1522. This would amend Subtitle INo similar provision.Subtitle I of the Solid Waste Disposal Act
nksof the Solid Waste Disposal Act to(Regulation of Underground Storage Tanks)
require EPA to distribute to the states atestablishes requirements to prevent, detect and
least 80% of the funds appropriated fromrespond to tank leaks.
the Leaking Underground Storage Tank
iki/CRS-RL33006(LUST) Trust Fund for the LUSTcleanup program. When determining the
g/wportion of cleanup costs to recover from
s.ora tank owner or operator, EPA or a state
leakwould be required to consider an owner
or operators ability to pay for cleanup
://wikiand still maintain basic business
httpoperatio ns.
spection of UndergroundSec. 1523. EPA or states would beNo similar provision.
e Tanksrequired to conduct compliance
inspections of underground storage tanks
(USTs) every three years.
rainingSec. 1524. States would be required toNo similar provision.


develop training requirements, based on
EPA guidance, for UST operators and
those responsible for tank maintenance
and spill response.

CRS-183
sion House Senate Comments
BE Cleanup: AuthorizingSec. 1525. EPA and states would beSec. 222(a). Similar, except that EPAUnder current law, LUST funds can be used to
e of the LUST Trust Fund authorized to use LUST Trust Fundand states could use LUST money forclean up contaminated drinking water supplies if
money to respond to tank leaks involvingresponding to MTBE and other etherthe contamination can be tied to a federally
oxygenated fuel additives (e.g., MTBEfuels additives, but not ethanol; also,regulated UST. However, because no federal
and ethanol). contamination need not be from an USTdrinking water standard has been established for
to be eligible for cleanup funding.MTBE (and drinking water standards are often
used to guide corrective actions), some states do
not require testing for MTBE at LUST sites, and
fewer than half the states are taking steps to ensure
that MTBE and other oxygenates are not
migrating beyond the standard monitoring
boundaries for LUST cleanup.
iki/CRS-RL33006
g/wf LUST Funds to EnforceSec. 1526. EPA and states would beSec. 222(b). Similar provision.The law allows LUST funds to be used to enforce
s.or Leak Prevention andauthorized to use LUST funds to enforcethe LUST cleanup program, but not the leak
leakn Regulations UST release prevention requirements. prevention program.
://wikiery ProhibitionSec. 1527. Fuel delivery to ineligibletanks would be prohibited. No similar provision.
http
eral FacilitiesSec. 1528. UST complianceNo similar provision.
requirements for federal facilities would
be clarified and expanded.
nks on Tribal LandsSec. 1529. EPA would be required toNo similar provision.
develop and implement a strategy to
address releases on tribal lands.
ditional Measures to ProtectSec. 1530. States would be required toNo similar provision.


oundwaterestablish additional groundwater
protection requirements for tank owners
or installers and manufacturers.

CRS-184
sion House Senate Comments
ST Trust FundSec. 1531. There would be authorized toSec. 222(b). There would be authorized
thorizations ofbe appropriated from the Trust Fund:to be appropriated from the Trust Fund:
ations
1. $200 million annually for FY2005-1. No similar provision.1. Current law does not contain a specific
FY2009 for the LUST cleanup program authorization of appropriations.
2. $200 million annually for FY2005-2. $200 million for FY2005, to remainUST leaks involving MTBE are more costly to
FY2009 for responding to tank leaksavailable, for responding to tank leaksremediate than conventional gasoline leaks.
involving MTBE or other oxygenatedinvolving MTBE or other ether fuelMTBE is very soluble and more likely to reach
fuel additives (e.g., other ethers andadditives (not ethanol). This is similar,water supplies. The bills authorize funding
ethanol). Expenditures would be subjectexcept that contamination need not bespecifically for MTBE cleanup.
to LUST program requirements.from an UST to eligible for cleanup
iki/CRS-RL33006 fund i ng.
g/w3. $155 million annually for FY2005-3. $50 million for FY2005 and $30
s.orFY2009 for EPA and states to carry outmillion annually for FY2006-FY2010,
leakand enforce the UST leak prevention andfor EPA and states to enforce UST (leak
://wikidetection requirements added by this billand the LUST cleanup program. prevention and detection regulations) andthe LUST (cleanup) regulations.
http
thorization of Appropriations1. This section would authorize $501. No similar provision.
m General Revenuesmillion, for each of FY2005-FY2009, for
EPA and states to carry out the UST
program.
nforming and TechnicalSec. 1532. Conforming amendments.No similar provisions.


endments Sec. 1533. Technical amendments.

CRS-185
que Fuels
sion House Senate Comments
ucing the Proliferation ofSec. 1541. The EPA AdministratorNo comparable provision.
utique Fuels would be permitted to temporarily waive
fuel requirements, including state fuel
requirements and RFG standards, in the
case of a natural disaster, Act of God,
pipeline or refinery equipment
malfunction, or other unforeseeable
event. In addition, the Administrator
could not approve a fuel standard under a
iki/CRS-RL33006State Implementation Plan if thatstandard would increase the number of
g/wunique state formulations above the
s.ornumber as of September 1, 2004.
leak
://wiki
http Studies
sion House Senate Comments
udy on Inventory ofSec. 1601. The Secretary of EnergySec. 1319. Within one year ofStorage capacity for natural gas and petroleum
troleum and Natural Gaswould have to report to Congress withinenactment, the Secretary of Energyplays an important role in buffering the impacts of
e a year of enactment on the amount ofwould be directed to conduct a study ofseasonal or unanticipated increases in demand,
storage capacity for petroleum andcrude oil, refined petroleum products,providing supply when needed and mitigating
natural gas. While the oil and gasand natural gas inventories, analyzingprice spikes.


industry is subject to broad reportinginventory levels and storage capacity
requirements under a variety of laws, thistrends. The study would also identify
language would call for a comprehensivefactors leading to shortages, and contain
study of the nations storage capabilityrecommendations for their avoidance.
and the role it plays in the marketplace

CRS-186
sion House Senate Comments
and the hydrocarbon industries’ ability to
meet demand.
dy of Energy EfficiencySec. 1605. DOE would be directed toSec. 1323. Nearly identical provision.This refers to Executive Order 13123. DOEs
ards have the National Academy of SciencesFederal Energy Management Program (FEMP)
study whether the goals of energydiscusses this issue in its Guidance for Providing
efficiency standards are best served byCredit Toward Energy Efficiency Goals for
focusing measurement at the site (energyCost-Effective Projects Where Source Energy Use
end-use) or at the source (the full fuelDeclines But Site Energy Use Increases, April 26,
cycle). This provision relates to a2000, 4 pp.
previous Executive Order, which found
that federal agencies should get credit
iki/CRS-RL33006toward meeting energy efficiency goals
g/weven where “source energy use declines
s.orbut site energy use increases.”
leaklecommuting Study Sec. 1606. DOE would be directed toSec. 1324. Nearly identical provision.
://wikistudy and report on the energyconservation potential of widespread
httpadoption of telecommuting by federal
employees. In this effort, DOE would be
required to consult with the Office of
Personnel Management, General Services
Administration, and National
Telecommunications and Information
Ad mi ni st r a t i o n.
HEAP Report Sec. 1607. The Department of HealthNo similar provision.


and Human Services (HHS) would be
directed to report on how the Low-
Income Home Energy Assistance
Program could be used more effectively

CRS-187
sion House Senate Comments
to prevent loss of life from extreme
temp eratur es.
ypass FiltrationSec. 1608. DOE and EPA would beSec. 1325. Nearly identical provision.
chnology required to jointly study the benefits of
oil bypass filtration technology in
reducing demand for oil and protecting
the environment. This study would
include consideration of its use in federal
motor vehicle fleets and an evaluation of
products and manufacturers.
iki/CRS-RL33006tal Integrated ThermalSec. 1609. DOE would be directed toSec. 1326. Nearly identical provision.
g/wstems study the potential for integrated thermalsystems to reduce oil demand and to
s.orprotect the environment. Also, DOE
leakwould study the feasibility of using this
://wikitechnology in Department of Defense andother federal motor vehicle fleets.
http
iversity Collaboration Sec. 1610. DOE would be directed toSec. 1327. Nearly identical provision.


report on the feasibility of promoting
collaboration between large and small
colleges through grants, contracts, and
cooperative agreements for energy
projects. DOE would also be directed to
consider providing incentives for the
inclusion of small colleges in grants,
contracts, and cooperative agreements.

CRS-188
sion House Senate Comments
ility and ConsumerSec. 1611. Within five years ofNo comparable provision.
otection Assessment enactment, and every five years
thereafter, FERC would be required to
assess the effects of electric cooperative
and government-owned utilities’
exemption from FERC ratemaking
regulation under section 201(f) of the
Federal Power Act. If FERC found that
the exemption resulted in adverse effects
on consumers or electric reliability,
FERC would be required to make
recommendations to Congress.
iki/CRS-RL33006
g/wort on Energy IntegrationSec. 1612. The Secretary of EnergyNo similar provision.
s.or Latin America would be called on to submit a report to
leakthe House Committee on Energy and
Commerce and the Senate Energy and
://wikiNatural Resources Committee aboutenergy export development in Latin
httpAmerica. With special focus on Mexico,
it would detail Latin America and
regional energy integration, and describe
U.S. efforts to promote constructive
relationships. In particular, it would focus
on efforts made with regard to U.S.-
Mexico cross-border energy projects.
w-Volume Gas ReservoirSec. 1613. The Secretary of EnergyNo similar provision.


y would be required to make a grant to an
organization of gas producing states
formed to deal with marginal oil and
natural gas wells. The grant would be
used for an annual study of these

CRS-189
sion House Senate Comments
reservoirs, to determine their location and
production characteristics, and
recommend incentives for production
enhancement. Extensive data collection is
envisioned, and this analysis would have
to be performed by an institution of
higher education with GIS (geographic
information system) technology
cap ab ilities.
nsolidation of GasolineSec. 1614. Would require theSec. 735. Would require the FederalA study on the effects of mergers and market
dustry Comptroller General of the United StatesTrade Commission to undertake a studyconcentration in the oil industry was published in
iki/CRS-RL33006to conduct a study of the consolidation ofto determine whether any form of marketMay 2004 by the General Accounting Office (now
g/wthe refiners, importers, producers, andmanipulation can account for highcalled the General Accountability Office) (GAO,
s.orwholesalers of gasoline with the sellers ofgasoline prices. A study by the NationalEnergy Markets, Effects of Mergers and Market
leaksuch gasoline at retail. The study wouldPetroleum Council would analyze theConcentration in the U.S. Petroleum Industry,
analyze the impact of such consolidationextent to which environmental and otherGAO-04-96, May 2004). This year, a study
://wikion the retail price of gasoline and smallbusiness ownership, corollary effects onregulations may be affecting refineryconstruction and expansion. analyzing the factors affecting gasoline prices wasissued by the Federal Trade Commission (FTC,
httpthe market economy of fuel distributionGasoline Price Changes: The Dynamic of Supply,
and local communities, and other marketDemand, and Competition, June 2005).
impacts of such consolidation.
y of Fuel Savings FromSec. 1615. The Secretary of Energy, inNo comparable provision.


formation Technology forconsultation with the Secretary of
ansportation Transportation, would be required to
report to Congress on the potential fuel
savings from the use of information
technologies to help businesses and
consumers plan their trips and avoid
delays.

CRS-190
sion House Senate Comments
ility Study for MustardSec. 1616. The Secretary of EnergyNo comparable provision.
iodiesel would be required to contract with the
National Academy of Sciences for a
study to determine the feasibility of using
mustard seed as a feedstock for biodiesel
productio n.
duction of Dependence onNo comparable provision.Sec. 151. The President would be
ported Petroleumrequired to submit a report to Congress
by February 2006, and annually
thereafter, on U.S. progress toward
reducing petroleum consumption in 2015
iki/CRS-RL33006by 1,000,000 barrels daily from the
g/wbaseline projected in the Department of
s.orEnergys Annual Energy Outlook, 2005.
leakWithin one year of enactment, the
President would develop and implement
://wikimeasures to achieve this objectivewithout compromising the supply and
httpaffordability of energy to consumers.
sessment of Dependence ofNo comparable provision.Sec. 324. The Secretary of Energy would
Hawaii on Oilbe required to evaluate the vulnerability
of Hawaii to oil disruptions, and to
assess, island-by-island, the technical and
economic feasibility of displacing oil
consumption with other sources of
energy, including renewables, liquefied
natural gas, and hydrogen.
Appropriations for completion of the
analysis are authorized, but not specified.



CRS-191
sion House Senate Comments
ergy and Water SavingNo similar provision.Sec. 1301. The Architect of the Capitol
ures in Congressionalwould be required to study ways to
ildings improve the energy efficiency and energy
security of the Capitol Complex through
green building, green roof, computer-
based building management, onsite
renewable energy, and other measures.
newable Energy on FederalNo similar provision.Sec. 1304. The Secretary of the Interior
nd would be required to have the National
Academy of Sciences (NAS) study the
potential for wind, solar, and ocean
iki/CRS-RL33006energy resources on federal land and the
g/wouter Continental Shelf.
s.orbrid Distributed PowerNo similar provision.Sec. 1310. The Secretary of Energy
leakstems would be required to study and report on
://wikihybrid distributed power systems thatcombine one or more renewable electric
httppower technologies with one or more
nonintermittent electric power
t e c hno l o gi e s .
drogen Participation Study No similar provision.Sec. 1328. The Secretary of Energy
would be required to report to Congress
on ways to ensure broad participation,
including international participants, in
setting goals for the DOE Hydrogen
program.
erall Employment in aNo similar provision.Sec. 1329. The Secretary of Energy
drogen Economy would be required to study and report to
Congress on the likely effects of a



CRS-192
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transition to a hydrogen economy on
national employment.
udy of Best ManagementNo similar provision.Sec. 1330. The Secretary of Energy
actices for Energy Researchwould be required to have the National
d Development Programs Academy of Public Administration study
and report to Congress on management
practices for DOE R&D programs. This
is to include practices that could improve
linkage between the Office of Science
and mission-oriented offices and
practices used by the Department of
iki/CRS-RL33006Defense Advanced Research Projects
g/w Agency.
s.ornative Fuels ReportsNo comparable provision.Sec. 1332. The Secretary of EnergyHythane is a registered trademark for compressed
leakwould be required to report on thenatural gas mixed with a small percentage of
://wikipotential for biodiesel and hythane to bemajor, sustainable, alternative fuels.hydrogen.
http
el Cell and HydrogenNo similar provision.Sec. 1334. In order to address concern
chnology Study about climate change and foster the
reduction of carbon emissions, the
Secretary of Energy would be required to
have NAS study and report on a budget
roadmap for developing a transition to
hydrogen fuel cell vehicles by 2020. The
roadmap would specify the amount of
federal funding required and identify
advantages and disadvantages of such a
tr ansitio n.



CRS-193
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ssive Solar Technologies No similar provision.Sec. 1335. The Secretary of Energy
would be required to study and report to
Congress on the levelized cost of avoided
electricity for passive solar technologies
and on the potential energy savings if
these technologies were to be eligible for
incentives comparable to those provided
for electricity generation technologies.
ce Study on CumulativeNo similar provision.Sec. 1338. The Secretary of Energy, inOpen-rack” vaporization of LNG uses a
pacts of Multiple Offshoreconsultation with other federal agenciescontinuous flow of seawater to reheat cryogenic
and non-government stakeholders, wouldLNG to a gaseous state. This study is prompted by
iki/CRS-RL33006be required to study the potential marineconcerns that multiple open-rack systems may kill
g/wenvironmental impacts of multiplea significant portion of commercial and
s.oroffshore liquefied natural gas (LNG)non-commercial marine species, especially
leakimport facilities usingopen-racknon-migratory species (e.g. redfish), in the waters
vaporization in the Gulf of Mexico. near new offshore LNG terminals employing such
://wiki syste ms.
http
Renewable Energy — Resources
sion House Senate Comments
ants to Improve theSec. 1701. This section is described
mmercial Value of Forestimmediately after section 206 above.


omass for Electric Energy,
eful Heat, Transportation
els, Petroleum-Based Product
bstitutes, and Other
mmercial Purposes

CRS-194
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ronmental Review forSec. 1702. This provision would limitNo similar provision.For all development projects proposed for federal
newable Energy Projects the number of alternative site analyseslands (or other federally controlled areas), NEPA
that a federal agency must perform whenrequires an environmental assessment or
National Environmental Policy Actenvironmental impact statement (EIS).
(NEPA) requirements are triggered by a
proposed renewable energy project.
nse of Congress RegardingSec. 1703. For the Secretary of theNo similar provision.
eration Capacity ofInterior, this provision would set a goal
From Renewableof having 10,000 megawatts of non-
ergy Resources on Publichydropower renewable energy generation
nds capacity installed on public lands within
iki/CRS-RL3300610 years from the date of enactment.
g/w
s.or
leak
://wikiGeothermal Energy
http
sion House Senate Comments
ort Title Sec. 1801. The John Rishel GeothermalNo similar provisionMuch of the nations geothermal energy potential
Steam Act Amendments of 2005.is located on federal lands. Reducing delays in the
federal geothermal leasing process and reducing
royalties could increase geothermal energy
production, although the environmental impact of
greater geothermal development is also an issue.
mpetitive Lease SaleSec. 1802. Amendments to theSec. 261. Similar, except administrativeCompetitive geothermal lease sales are based on
quirementsGeothermal Steam Act would changeaction would be taken to ensure timelywhether lands are within a known geothermal
lease procedures for competitive andprocessing of applications for geothermalresource area (Geothermal Steam Act of 1970,
non-competitive lease sales. Competitiveleasing pending on May 19, 2005. U.S.C. 1003). Geothermal production on federal
lease sales would be held every twolands is charged a royalty of 10%-15% under



CRS-195
sion House Senate Comments
years. If there were no competitive bid,Section 5 of the Geothermal Steam Act. The
then lands would be made available forroyalty is imposed on the amount or value of
two years under a non-competitivesteam or other form of heat derived from
process. production under a geothermal lease.
Sec. 1803. A fee schedule in lieu of anySec. 262. Similar, except different basisThe Secretary of the Interior can withdraw public
royalty or rental payments would befor schedule of fees.lands from leasing or other public use and modify,
established for low-temperatureextend, or revoke withdrawals under provisions in
geothermal resources. Existingthe Federal Land Policy and Management Act of
geothermal leases may be converted to1976 (FLPMA, 43 U.S.C. 1714). At certain
leases for direct utilization ofintervals the Secretary may readjust terms and
low-temperature geothermal resources. conditions of a geothermal lease, including rental
iki/CRS-RL33006and royalty rates. Annual rental fees of not less
g/wthan $1 per acre on geothermal leases are paid inyalties and Near-Termoduction IncentivesSec. 1804. Royalties on electricityproduced from geothermal resourcesSec. 263. Royalty calculations would besimplified not later than one year after
s.oradvance. The primary lease term is 10 years andwould be not less than 1% and not moreenactment of this act.
leakcontinues as long as geothermal steam is producedthan 2.5% of the gross proceeds from
or used in commercial quantities. Rents are $1 per
://wikiacre or fraction thereof for each year of ageothermal lease.geothermal electricity sales in the first 10years of production and not less than 2%
httpand more than 5% of the gross proceeds
from geothermal electricity sales each
year after the 10-year period.
pediting AdministrativeSec. 1805. With respect to NationalNo similar provision.
tionForest lands, the Secretary of Agriculture
and the Secretary of the Interior would
ensure timely actions for processing
applications pending as of January 1,
2005.
nation of Leasing andSec. 1806. A memorandum ofSec. 264. Same.


rmittingunderstanding between the Secretaries of

CRS-196
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the Interior and Agriculture should
include provisions that would identify
known geothermal areas on public lands
within the National Forest system and
establish an administrative procedure that
would include time frames for processing
lease applications.
view and Report to CongressSec. 1807. The Secretary of the InteriorNo similar provision.
would review all areas under moratoria
or withdrawals and report to Congress on
whether the reasons for withdrawal still
iki/CRS-RL33006applied.
g/wimbursement of NEPA CostsSec. 1808. The Secretary of the InteriorNo similar provision.
s.orcould reimburse lessees for the costs of
leakenvironmental analyses required by
://wikiNEPA through royalty credits undercertain circumstances.
http
ssment of GeothermalSec. 1809. The U.S. Geological SurveySec. 265. Same.
ergy Potential(USGS) would provide Congress with an
assessment of current geothermal
resources.
ive or Unit PlansSec. 1810. Cooperative or unit plans forSec. 266. Same.
geothermal development would be
promoted.
yalty on ByproductsSec. 1811. Leasable minerals producedSec. 267. Same.


as a byproduct of a geothermal lease
would be subject to royalties under the
Mineral Leasing Act (30 U.S.C. 181).

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eal of Authorities toSec. 1812. Sections 8(a) and (b) of theNo similar provision.This provision would preserve the initial
ust Lease TermsGeothermal Steam Act would beconditions of a geothermal lease by prohibiting
repealed, which would eliminate thefuture adjustments imposed by the Secretary of
Secretarys authority to readjustthe Interior.
geothermal rental and royalty rates at
not less than 20 year intervals beginning
35 years after the date geothermal steam
is produced.”
editing of Rental TowardSec. 1813. Annual rentals would beNo similar provision.
yaltycredited towards the royalty under the
same lease.
iki/CRS-RL33006
g/we Duration and Workmmitment RequirementsSec. 1814. The primary lease term wouldbe 10 years and could be extended forSec. 268. The Secretary of the Interiorshall establish payments to ensure
s.ortwo additional five-year terms if workdiligent development of the lease.
leakcommitments were met.
://wikivanced Royalties RequiredSec. 1815. If production from aSec. 270. Similar but the lease would
httpr Suspension of Productiongeothermal lease were suspended duringremain in full force an aggregate of 10
a period in which a royalty was required,years from the date production ceases.
royalties would be paid in advance until
production resumed.
l RentalSec. 1816. The bill would establishSec. 269. Similar. The annual rental
rental rates for competitive and non-schedule would be amended to encourage
competitive lease sales. diligent development of the lease.
posit and Use of GeothermalSec. 1817. For the first five years afterNo similar provision.


e Revenuesthe enactment of this act, a separate
account would be established for revenue
receipts from leases under the
Geothermal Steam Act of 1970,

CRS-198
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excluding money necessary for payments
to states and county governments.
peal of Acreage LimitationsSec. 1818. Section 7 of the GeothermalNo similar provision.
Steam Act on acreage limitations would
berepealed.
nical AmendmentsSec. 1819. About two dozen technicalSec 272. Similar.
amendments are included in this section.
termountain West GeothermalSec. 1820. The Intermountain WestNo similar provision
nsortiumGeothermal Consortium would be
iki/CRS-RL33006established to focus on expanded use ofgeothermal energy. The consortium
g/wwould involve the participation of the
s.orSecretary of Energy, universities in the
leakregion, and state agencies.
://wikiothermal Leasing on LandNo similar provision.Sec. 271. Not later than 2 years after
httpithdrawn for Militaryenactment, the Secretary of the Interior
rposesand the Secretary of Defense, in
consultation with states and other
agencies, would be required to submit to
the appropriate committees of Congress a
joint report on leasing and permitting
activities for geothermal energy on
federal land withdrawn for military
purposes.



CRS-199
Hydropower — Resources
sion House Senate Comments
creased HydroelectricSec. 1901. Within 18 months ofSec. 1302. Same provision.
eration at Existing Federalenactment, the Secretaries of the Interior,
Energy, and the Army would submit a
study of the potential for increasing
electric power production capability at
federally owned or operated water
regulation, storage, and conveyance
facilities.
iki/CRS-RL33006ift of Project Loads to Off- Periods Sec. 1902. The Secretary of the Interiorwould review electric powerNo similar provision.
g/wconsumption by the Bureau of
s.orReclamation facilities for water pumping,
leakand, with the consent of affected
://wikiirrigation customers, adjust waterpumping schedules to reduce power
httpconsumption during periods of peak
electric power demand. This section
would not affect Interiors existing
obligations to provide electric power,
water, or other benefits.
ort Identifying andSec. 1903. Within 90 days of enactment,No similar provision.


scribing the Status ofthe Secretary of the Interior would
tential Hydropower Facilities submit a report identifying and
describing the status and characteristics
of potential hydropower facilities
included in water surface storage studies
undertaken for projects that have not

CRS-200
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been completed or authorized for
c o nst r uc t i o n.
Oil and Gas — Resources
oduction Incentives
sion House Senate Comments
iki/CRS-RL33006inition of Secretary Sec. 2001. In this subtitle, “SecretarySec. 311. Same.
g/wmeans Secretary of the Interior.
s.orram on Oil and GasSec. 2002. The federal governmentSec. 312. Same except the report to
leakyalties-In-Kind would be allowed to continue to receiveCongress would be in each year from
://wikiphysical quantities of oil and gas asroyalty-in-kind payments if it can receiveFY2006- FY2015.


httpmarket value for the product and
revenues greater than or equal to the
revenues it would have received under a
comparable cash-payment royalty. The
royalty product would have to be placed
in marketable condition (as defined in
H.R. 6) at no cost to the United States.
Small refineries would receive
preferential treatment if supplies on the
market were insufficient. A report to
Congress in each year from FY2005-
FY2014 would explain, among other
things, how the Secretary determined
whether the amount received was at least

CRS-201
sion House Senate Comments
the amount that would have been taken in
cash and how a lease was evaluated as to
whether royalties-in-kind were taken.
inal Property ProductionSec. 2003. The Secretary of the InteriorSec. 313. Same.
centives would have the authority to reduce or
terminate royalties for independent
producers under certain conditions. The
Secretary would be authorized to
prescribe different standards for marginal
properties in lieu of those in this section.
iki/CRS-RL33006centives for Natural GasSec. 2004. Royalty reductions would beSec. 314. Similar. Defineslease issuedThese reductions would be provided for
g/woduction From Deep Wells inallow Waters of the Gulfprovided for shallow water production atcertain depths not later than180 daysin shallow waters” and a sidetrack well. production in less than 400 meters of water in theHouse bill but not more than 200 meters in the
s.or Mexico after enactment. Anultra-deep” wellSenate. The Senate definition of shallow water is
leakwould also be defined in this section. less than 200 meters deep.
://wikiyalty Reductions for DeepSec. 2005. Royalty reductions would beSec 315. Similar. The reductions are limited to 12 million barrels of
httpater Production provided for deepwater areas at fixedoil equivalent at depths greater than 1,600 meters.
production levels at certain depths.
aska Offshore RoyaltySec. 2006. Planning areas in offshoreSec. 316. Same. This section of OCSLA currently provides a
ension Alaska would be included under sectionmechanism for the Secretary of the Interior to
8(a)(3)(B) of the Outer Continental Shelfreduce or eliminate royalty or net profit share
Lands Act (OCSLA, 43 U.S.C.established in leases for oil and gas production in
1337(a)(3)(B)).Gulf of Mexico planning areas.
d Gas Leasing in theSec. 2007. The competitive leasingSec. 317. Similar provision.


nal Petroleum Reserve insystem for oil and gas in the National
aska Petroleum Reserve in Alaska would be
modified. Leases would be issued for
successive 10-year terms if leases met

CRS-202
sion House Senate Comments
specific criteria. Active participation
would be sought by the State of Alaska
and Regional Corporations as defined
under the Alaska Native Claims
Settlement Act (43 U.S.C. 1602). The
Secretary of the Interior could grant
royalty reductions if they were found to
be in the public interest.
rth Slope Science InitiativeNo comparable provision.Sec. 318. Would establish in the Interior
Department a long-term initiative to
coordinate collection of scientific data
iki/CRS-RL33006that will provide a better understanding
g/wof the terrestrial, aquatic, and marine
s.orecosystems of the North Slope of Alaska.
leakThe Interior Secretary would enter into
cooperative agreements with the State of
://wikiAlaska, the North Slope Borough, theArctic Slope Regional Corporation, and
httpother Federal agencies to coordinate
efforts, share resources, and fund
projects. Not less than 3 years after the
date of enactment of this section and each
year thereafter, the Secretary shall
publish a report that describes the studies
and findings of the initiative.
aned, Abandoned, or IdledSec. 2008. Within a year afterSec. 319. Similar except Senate bill does
ells on Federal Land enactment, the Secretary would establishnot contain federal reimbursement for
a technical assistance program to helporphaned well reclamation.


states remediate and close abandoned or
idled wells. Technical and financial
assistance would be made available over

CRS-203
sion House Senate Comments
a 10-year period to quantify and mitigate
environmental dangers. A program
would be established for reimbursing the
private sector with credits against federal
royalties for reclaiming, remediating, and
closing orphaned wells.
mbined Hydrocarbon Leasing Sec. 2009. The Mineral Leasing ActSec. 320. Similar except the Senate
would be amended to allow separateversion does not contain a House
leases for tar sands and for oil and gas inprovision to waive or suspend a
the same area. Tar sands would be leasedrequirement to exercise due diligence to
under the same system as for oil and gaspromote a resource under a combined
iki/CRS-RL33006and would require a minimum acceptablehydrocarbon lease.
g/wbid of $2 per acre.
s.ornate Related Uses on theSec. 2010. The Secretary would beSec. 321. This would amend the OuterAlthough specific types of energy resources are
leakter Continental Shelf authorized to grant rights-of-way orContinental Shelf Lands Act to providenot specifically mentioned, this provision would
://wikieasements on the OCS for energy-relatedactivity on a competitive orauthority to the Secretary of the Interiorto grant leases, easements, orpresumably cover ocean energy, wind energy, andgeothermal energy.


httpnoncompetitive basis and would chargerights-of-way for energy and related
fees for such access. A surety bond orpurposes on the OCS. The section would
other financial guarantee would benot allow the grant of easements or
required.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 would not apply to any area
within the exterior boundaries of any unit
of the National Park System, National

CRS-204
sion House Senate Comments
Wildlife Refuge System, or National
Marine Sanctuary System, or any
National Monument. The section would
require the Secretary to undertake a
coordinated OCS mapping initiative to
assist in decision-making relating to the
siting of facilities under the section.
eservation of Geological andSec. 2011. The U.S. Geological SurveySec. 322. The Secretary of the Interior
physical Data would establish a program to archivewould carry out a National Geological
geologic, geophysical, and engineeringand Geophysical Data Preservation
data, maps, well logs, and samples;Program that would archive geologic,
iki/CRS-RL33006provide a national catalog of archivalgeophysical, and engineering data, maps,
g/wmaterial; and provide technical andwell logs, and samples; provide a
s.orfinancial assistance related to the archivalnational catalog of such archival
leakmaterial. State agencies that elect to bematerial; provide technical and financial
part of the data archive system that storesassistance related to the archival material;
://wikiand preserves geologic samples wouldreceive 50% financial assistance, subjectand establish a data archive systemcomprised of State agencies and Interior
httpto the availability of appropriations.Department agencies for federal land data
Private contributions would be applied toin a national catalog.
the non-federal share. Appropriations of
$30 million per year from FY2006
through FY2010 would be authorized.
d Gas Lease AcreageSec. 2012. Lease acreage limits would beSec. 323. Same
mitations altered so that additional federal lands
would not fall under the Mineral Leasing
Act’s single-state ownership limitations.
e for Decision onSec. 2013. Current Section 319 of theSec. 387. Generally similar in intent toThis section would replace language in Section
Under the Coastal ZoneCZMA would be replaced with a new setprovisions in House bill, limiting the319 of CZMA, as amended (16 U.S.C. 1465).
anagement Act (CZMA)of provisions that would stipulate threeappeals process to 270 days, but thisSection 319 had been added as an amendment in



CRS-205
sion House Senate Comments
sequential deadlines, and thereby limitsection would allow a total of 270 days1996. It established a time line for appeals to the
the overall length of this appeals processrather than create three sequentialSecretary of Commerce on consistency
to a total of 270 days from the date whendeadlines that total 270 days. In addition,determinations when a state and federal agency
an appeal is filed. The first deadlineit would allow a 60 day extension forare unable to reach agreement. The consistency
would be for the Secretary of Commercekeeping the administrative record openprovisions, set forth in Section 307 of the CZMA,
to publish an initial notice of an appeal inunder specified circumstances, and wouldrequire federal activities in or affecting the coastal
the Federal Register within 30 days ofallow an extension of up to 45 days forzone to be consistent with the policies of a
the appeal’s filing. The second deadlinethe Secretary to issue a decision. Thefederally approved and state-administered coastal
would be that the administrative recordSenate bill would not “grandfatherzone management plan. (Federal activities include
would be open for no more than 120pending appeals.activities and development projects performed by
days. During that time period, thea federal agency or by a contractor on behalf of a
Secretary could receive filings related tofederal agency, and federal financial assistance.)
iki/CRS-RL33006the appeal. The final deadline wouldA proposal to modify the appeals time line with
g/wgive the Secretary up to 120 days to issuedeadlines very similar to this legislation was
s.ora decision after the administrative recordincluded in a proposed rule on federal consistency,
leakhad been closed. The second and thirdpublished in the June 11, 2003, Federal Register.
deadlines would also apply to all pendingA final rule has not been issued.
://wikiappeals not resolved prior to the date of(For more information see Appendix J.)
httpenactment. Also, any appeals in which
the record is open on the date of
enactment would have to be closed
within 120 days of that date.
imbursement for Costs ofSec. 2014. The Mineral Leasing ActNo similar provision.


A Analysis,would be amended to provide
cumentation, and Studies reimbursement for costs of NEPA-related
studies under certain circumstances.

CRS-206
sion House Senate Comments
s Hydrate ProductionSec. 2015. Royalties would beNo similar provision.
centive suspended for the first 50 billion cubic
feet of natural gas produced from gas
hydrate resources per 9 square miles of
leased tract, in addition to any other
applicable royalty relief.
shore Deep Gas ProductionSec. 2016. Royalties for onshore deep-No similar provision.
centive well natural gas would be suspended for
up to 50 billion cubic feet per natural gas
lease.
iki/CRS-RL33006hanced Oil and Natural GasSec. 2017. Royalty relief would beSec. 327. The Secretary of Energy would
g/wction available for the purposes of enhancingoil and natural gas recovery frombe required to establish a competitivegrant program for projects to inject
s.orspecified leases. carbon dioxide to enhance recovery of oil
leakor natural gas while increasing the
://wikisequestration of carbon dioxide.
httpale Sec. 2018. The Secretary of the InteriorSec 346. Similar except its leasing
would develop an oil shale leasingprogram would be for oil shale and oil
program as soon as practicable andsands. The leasing program would be for
publish a final regulation to implementconducting research and development
the program by December 31, 2006.activities related to the production of oil
shale and oil sands. An environmental
impact statement would be conducted,
and an oil shale and oil sands task force
would be set up to develop a program to
coordinate and accelerate the commercial
development of oil shale and tar sands.



CRS-207
sion House Senate Comments
e of Information about OilSec. 2019. The Secretary of the InteriorNo similar provision.
d Gas Public Challenges and the Secretary of Agriculture would
collect information on challenges by the
public to agency decisions and use the
information to manage oil and gas
programs within their departments.
mprehensive Inventory ofNo similar provision.Sec. 326. The Secretary of the Interior
d Natural Gaswould conduct an inventory and analysis
sources of oil and natural gas beneath all waters
of the United States OCS. Also, the
Secretary would issue a report to
iki/CRS-RL33006Congress within 6 months of enactment
g/wof the legislation that would include a
s.ordiscussion of restrictions, impediments,
leakand recommendations.
://wiki
http
sion House Senate Comments
g and PermittingSec. 2021. An Office of Federal EnergyNo similar provision


ocessesProject Coordination (FEPC) would be
established to review and report on
accomplishments that are considered
more efficient and effective for federal
permitting.

CRS-208
sion House Senate Comments
view of Leasing PracticesSec. 2022. The Secretary of the InteriorSec. 341. Similar except that the National
would perform an internal review of theAcademy of Public Administration
federal onshore oil and gas leasing andwould perform a review of federal
permitting process with particular focusonshore oil and gas leasing practices
on lease stipulations affecting thewhile the Department of the Interior
environment and conflicts over resourcewould separately perform an internal
use.review.
anagement of LeasingSec. 2023. The Secretary of the InteriorSec. 342. Similar except funds would be
ogramswould be required to ensure expeditiousauthorized from FY2006-FY2010.
completion of environmental and other
reviews and implement “best
iki/CRS-RL33006management practices” that would lead
g/wto timely action on oil and gas leases and
s.ordrilling permits. Funds would be
leakauthorized for FY2006-FY2009.
://wikinsultation on LeaseplicationsSec. 2024. The Secretary of the Interiorand the Secretary of Agriculture wouldSec. 343. Same
httpenter into a memorandum of
understanding to ensure timely
processing of oil and gas lease
ap p licatio ns.
ates of Oil and GasSec. 2025. The U.S. Geological SurveyNo similar provision.


sourceswould be required to estimate onshore oil
and gas resources and identify
impediments and restrictions that might
delay permits. The Department of
Energy would be required to make
regular assessments of economic
reserves.

CRS-209
sion House Senate Comments
t Project on Federal PermitSec. 2026. A pilot program would be Sec. 344. Same, except funds would be
nationestablished to demonstrate energyauthorized for FY2006-FY2010.
development on federal land in
accordance with the multiple-use
mandate; Wyoming, Montana, Colorado,
Utah, and New Mexico would be asked
to participate.
e for Consideration ofSec. 2027. The Secretary of the InteriorNo similar provision.
rmit Applicationswould have 10 days after receiving an
application for a permit to drill (APD) to
notify the applicant whether the APD was
iki/CRS-RL33006complete. The Secretary would have 30
g/wdays after a complete APD was submitted
s.orto issue or defer a permit with correcting
leakmeasures. If deferred, the applicant
would have a two-year window to
://wikicomplete the application, as specified bythe Secretary. If the applicant met the
httprequirements, then the Secretary would
issue a permit within 10 days. The
Secretary would deny the permit if the
criteria were not met within the two-year
period.
et Rental ValueSec. 2028. The Secretaries of the InteriorNo similar provision.
minations for Public Landand Agriculture would annually revise
d Forest Service Rights-of-and update rental fees for land
y encumbered by linear rights-of-way to
reflect fair market value.
ergy Facility Rights-of-WaySec. 2029. Not later than one year afterSec. 345. Similar, but would not include
d Corridors on Federal Landsenactment, the Secretaries of the Interiora report to Congress.


and Agriculture, in consultation with the
Secretaries of Defense, Commerce, and

CRS-210
sion House Senate Comments
Energy and FERC, would submit to
Congress a report addressing the location
of existing rights-of-way on federal land
for oil and gas pipelines and electric
transmission and distribution facilities.
nsultation Regarding EnergySec. 2030. Within six months afterNo similar provision.
ghts-of-Way on Public Land enactment, the Secretaries of the Interior
and Agriculture would be required to
enter into an MOU to coordinate
environmental compliance and
processing of rights-of-way applications.
iki/CRS-RL33006
g/w Transmission Lineght-of-Way in ClevelandSec. 2031. The Bureau of LandManagement would become the leadNo similar provision.
s.oral Forest and Adjacentfederal agency for environmental and
leakblic Land other necessary reviews for a high-
://wikivoltage electricity transmission line right-of-way through the Trabuco Ranger
httpDistrict of the Cleveland National Forest
in California.
nse of Congress RegardingSec. 2032. In recognition of the splitNo similar provision.
velopment of Minerals Underestate on Padre Island National Seashore,
dre Island National Seashoreit would be the sense of Congress that the
federal government owns the surface
rights while the mineral rights are held
privately and also by the state of Texas.
vingston Parish MineralSec. 2033. Section 102 of P.L. 102-562No similar provision.


ransfer is amended by striking the “Conveyance
of Lands” provision, which maintains the
reservation of mineral rights held by the
United States in specific areas of
Livingston Parish, Louisiana.

CRS-211
sion House Senate Comments
gerlakes WithdrawalNo similar provision.Sec. 347. All federal land within the
boundary of Fingerlakes National Forest,
New York, is withdrawn from entry,
disposal, appropriation, and disposition
under mineral leasing laws.
instatement of LeasesNo similar provision.Sec. 348. This section would establish
conditions for which an oil and gas lease
is reinstated if it was terminated between
September 1, 2001, and June 30, 2004.
iki/CRS-RL33006al Petroleum Reserves
g/w
s.orsion House Senate Comments
leak
al Petroleum ReservesSecs. 2041-2044. This provision wouldNo provision.The National Defense Authorization Act for
://wikitransfer administration of virtually all theFY1996 (P.L. 104-106) authorized sale of the
httpgovernment-held tracts of the NavalPetroleum Reserves to the Department offederal interest in the oil field at Elk Hills, CA(Naval Petroleum Reserve-1 (NPR-1)). Transfers
the Interior. Surface rights, title, andof other NPR sites have followed in subsequent
interest of a roughly 167-acre parcelyears. This leaves in the Naval Petroleum
would be transferred to the city of Taft,Reserves program two small oil fields in
CA. The federal government wouldCalifornia and Wyoming, which will generate
retain rights to all fossil fuel and mineralestimated revenue to the government of roughly
resources for itself or its lessees, but$7.2 million during FY2005. The Kern County
would yield all surface rights andsite (NPR-2) comprises a “checkerboard” pattern
responsibilities for care of the surface.of government and privately owned tracts adjacent
The Executive Order of December 13,to the Elk Hills field. Of the 50 tracts owned by
1912, establishing NPR-2 would bethe government, nearly 90% are leased by private
revoked.oil companies with royalty payments deposited in
the U.S. Treasury.



CRS-212
scellaneous Provisions
sion House Senate Comments
lit-Estate Federal Oil and GasSec. 2051. The Secretary of the InteriorSec. 1321. Same except it would include
ing and Developmentwould conduct a review of howan analysis of state laws that address
actices management practices by federalsplit-estates.
subsurface oil and gas development
activities affect privately owned surface
users. The review would detail the rights
and responsibilities of surface and
subsurface owners, compare consent
provisions under the Surface Mining
iki/CRS-RL33006Control and Reclamation Act of 1977with provisions for oil and gas
g/wdevelopment, and make
s.orrecommendations that would address
leaksurface owner concerns.
://wikiyalty Payments UnderSec. 2052. The lessee of a “covered leaseNo similar provision.
httprtain Leases tract” off the coast of Louisiana would be
allowed to withhold royalties due to the
United States if it paid the state of
Louisiana 44 cents for every dollar of the
federal royalty withheld. This royalty
relief would end when certain drainage
claims were satisfied.
mestic Offshore EnergySec. 2053. This would add a new SectionSec. 371. Similar, but would amendRepresentatives of states with offshore energy
investment 32 at the end of the Outer ContinentalSection 31 of the OCSLA (43 U.S.C.development have been seeking to return a
Shelf Lands Act (43 U.S.C. 1331 et. seq.)1356a). The Secretary would annuallysignificant portion of the federal revenues
to return a portion of the federal revenuesdisburse to producing states and politicalgenerated to these states, and particularly the
from offshore energy activities tosubdivisions $25 million for FY2007-coastal areas within these states that may be more
affected coastal states to fund specifiedFY2010. Allocations for each producingaffected by onshore and near-shore activities that
activities. This section would create astate and political subdivision as well assupport that development. Proponents of these
new Domestic Offshore Energyauthorized uses would be established. proposals look to the rates at which funds are



CRS-213
sion House Senate Comments
Reinvestment Program, funded by a newgiven to jurisdictions where energy development
Secure Energy Reinvestment Fund.occurs on federal lands, and seek revenues that
Revenues for the fund, subject towill help coastal states respond to adverse onshore
appropriation, would include $35 millioneffects of offshore energy development. Coastal
in royalty income each year, plus alldestruction has received more attention in
royalty income above a specified amountLouisiana, where many square miles of wetlands
that would generally increase annually,are being lost to the ocean each year. A federal
bonus bid income above $880 millionprogram to address the impacts of coastal energy
each year, and interest income earned bydevelopment was enacted during the energy crisis
the fund. Each year beyond FY2015 theof the late 1970s. Called the Coastal Energy
Secretary of the Treasury would depositImpact Assistance Program, it operated briefly,
25% of all qualified revenues of theproviding loans and grants to states through the
iki/CRS-RL33006preceding year into the fund plusfederal Coastal Zone Management Program. There
g/winvestment interest earned. Coastal statesis no comparable program operating under in
s.orwhere energy activities occur offshorecurrent law. (For more information see
leakand coastal political subdivisions in thoseAppendix K.)
states would be eligible to receive money
://wikifrom the fund. Allocations among
httpeligible states would be determined by a
formula that accounts for energy
revenues generated offshore in federal
waters that lie between outward
extensions of the state's lateral
boundaries over the past 10 years.
purchase of Leases That AreSec. 2054. Under certain circumstancesNo similar provision.


t Allowed To Be Explored orany federal lease (oil, gas, coal, tar sands,
veloped etc.) if not allowed to be explored or
developed would be authorized for
repurchase and cancellation by the
Secretary of the Interior.

CRS-214
sion House Senate Comments
mitation on Required ReviewSec. 2055. Certain activities would notNo similar provision.
der NEPA be subject to NEPA if the activity is
conducted for the purpose of exploration
or development of a domestic federal
energy resource.
Coal — Resources
sion House Senate Comments
iki/CRS-RL33006ort TitleSec. 2101. Coal Leasing AmendmentsAct of 2005No similar provision.These sections would modify federal coal leasingprocedures to encourage greater coal production
g/won federal lands. Issues raised by these provisions
s.orinclude their impact on regional competition and
leakreturns to the U.S. Treasury.
-
://wikiUnder the Mineral Leasing Act of 1920 (30
httpU.S.C. 203), modifications to an existing coale ModificationsSec. 2102. The House-passed bill wouldSec. 411. Similar provision.
lease would not exceed 160 acres or add acreagerepeal the 160-acre limitation on coal
larger than that in the original lease. Coal leaseslease modifications. The total area added
are subject to diligent development requirements,to an existing coal lease through a
but the Secretary of the Interior may suspend themodification could not exceed 1,280
condition upon payment of advance royalties.acres or add acreage larger than the
Advance royalties are computed on a fixedoriginal lease.
production reserve ratio, and the aggregate
number of years advance royalties may beal of Logical MiningSec. 2103. Criteria would be establishedSec. 412. Same.


accepted in lieu of production is 10. An operationitsfor extending the mine-out period of a
and reclamation plan must be submitted withincoal lease beyond 40 years.
three years after a lease is issued under the
Leasing Act (30 U.S.C. 207). Financial assurance
is required to guarantee payment of bonus bid
installments (30 U.S.C. 201 (a)).

CRS-215
sion House Senate Comments
yment of Advance RoyaltiesSec. 2104. The Secretary of the InteriorSec. 413. Similar provision.
could upon payment of an advance
royalty, suspend a coal lessee’s
requirement for continuous operation.
Advance royalties would be based on the
average price of coal sold on the spot
market from the same region, and the
aggregate number of years advance
royalties could be accepted in lieu of
production would not exceed 20.
ination of DeadlineSec. 2105. The current three-yearSec. 414. Same.
iki/CRS-RL33006deadline for submission of a coal lease
g/woperation and reclamation plan would be
s.orrepealed.
leaknancial Assurances on BonusSec. 2106. The financial surety bond orNo similar provision.
://wikidsother financial guarantee for a bonus bidwould no longer be required.
http
ntory RequirementSec. 2107. The Secretary of the Interior,No similar provision.
in consultation with the Secretaries of
Agriculture and Energy, would be
required to assess coal on public lands,
including low-sulfur coal and various
impediments to developing such
reso ur ces.
plication of AmendmentsSec. 2108. Amendments made under thisSec. 416. Similar but would specify how
provision would apply to any coal leaseamendments would affect coal leases
issued before, on, or after the date ofissued before the date of enactment of
enactment. this act.



CRS-216
sion House Senate Comments
lution of ResourceSec. 2109. The Secretary of the InteriorSec. 1322. Same
elopment Conflicts in thewould report to Congress on plans to
der River Basinresolve conflicts between development of
coal and coalbed methane in the Powder
River Basin.
ansportation Fuels fromNo similar provision.Sec. 415. A program would be
ois Basin Coalestablished to evaluate the commercial
and technical viability of producing
Fischer-Tropsch fuels for transportation
from Illinois basin coal. A gasification
test center would be constructed and $85
iki/CRS-RL33006million would be authorized for years
g/w FY2006-FY2010.
s.or
leak
://wikiEnergy Development in Arctic Refuge
http
sion House Senate Comments
ort Title Sec. 2201. The short title is the “ArcticNo similar provision. Section 1003 of the Alaska National Interest
Coastal Plain Domestic Energy SecurityLands Conservation Act of 1980 (ANILCA, P.L.
Act of 2005.”96-487, 94 Stat. 2371) prohibited oil and gas
development in the entire Arctic National Wildlife
Refuge (ANWR), or “leasing or other
development leading to production of oil and gas
from the range” unless authorized by an act of
Congress. Section 1002 required a legislative
environmental impact statement on proposed
development and its potential effects. The Final
Legislative Environmental Impact Statement



CRS-217
sion House Senate Comments
(FLEIS) and a recommendation to proceed to full
development was issued in 1987. Under current
law for the management of national wildlife
refuges (16 U.S.C. §668dd), and under 43 C.F.R.
§3101.5-3 for Alaskan refuges specifically, an
activity may be allowed in a refuge only if it is
compatible with the purposes of the particular
refuge and with those of the Refuge System as a
whole. In the 25 years since the passage of
ANILCA, various unsuccessful attempts have
been made to pass ANWR development
legislatio n.
iki/CRS-RL33006
g/winitions Sec. 2202. The ANWR Coastal PlainNo similar provision. The Appendix refers to the legal boundaries of the
s.orwould be defined as approximately 1.5Coastal Plain that were administratively drawn to
leakmillion acres as identified underexclude the three townships selected by the
ANILCA, and described in Appendix I toKaktovik Inupiat Corporation (KIC, an Alaska
://wikiPart 37 of Title 50 C.F.R. “Secretarywould be defined as the Secretary of theNative Village Corporation) from the definedCoastal Plain. However, the lands are within the
httpInterior.geographical limits of the “coastal plain.” Also
under ANILCA, KIC was entitled to select a
fourth township, for a total of approximately
92,000 acres. In addition, there are over 10,000
acres of Native-owned allotments in the Refuge.
These are basically surface ownerships, with the
federal government reserving the oil, gas, and coal
rights. Although allotments were originally
restricted titles, under P.L. 108-337, allotments
may now be subdivided and dedicated as if the
surface estate were held in unrestricted, fee-simple
title — a fact that could facilitate development on
them if the Refuge is opened.



CRS-218
sion House Senate Comments
ing Program Sec. 2203. This section would direct theNo similar provision.
Secretary to establish the leasing program
subject to various conditions, described
belo w.
lishment of LeasingSec. 2203(a) and (b). Acting through theNo similar provision.
ogram and Repeal of LeasingBureau of Land Management and in
ohibition consultation with the Fish and Wildlife
Service, the Secretary would be required
to establish a competitive oil and gas
leasing program under the Mineral
Leasing Act (30 U.S.C. §181 et seq.) for
iki/CRS-RL33006the Coastal Plain; the program is to result
g/winno significant adverse effect” on
s.orspecified environmental and subsistence
leakresources, and leasing is to be conducted
ina manner that ensures the receipt of
://wikifair market value by the public for themineral resources to be leased.” Section
http1003 of ANILCA would be repealed.
mpatibility with Purposes ofSec. 2203(c) and (d). Subsection 2203(c)No similar provision. The language of subsection (c) appears to answer
uge; NEPA Requirements;states that the oil and gas leasing programthe compatibility question and to eliminate the
Effect on State Authorities and activities in the Coastal Plain areusual compatibility determination processes. The
deemed to be compatible with theextent of leasingactivities” that might be
purposes for which ANWR wasincluded as compatible is debatable: At issue
established and that no further findings orwould be whether the term encompasses, for
decisions are required to implement thisexample, necessary support activities, such as
determination. construction and operation of port facilities,
-staging areas, and personnel centers.


Subsection (c) would also declare that the
FLEIS is deemed to satisfy the
requirements of NEPA with respect to

CRS-219
sion House Senate Comments
actions by the Secretary to develop and
promulgate leasing regulations, yet
would require the Secretary to prepare
an Environmental Impact Statement
(EIS) with respect to other actions, some
of which might usually require only a
(shorter) environmental assessment.
Consideration of alternatives would be
limited to two choices, a preferred option
and a “single leasing alternative.”
(Generally, an EIS analyzes several
alternatives, including a “no action
iki/CRS-RL33006alter native.)
g/w-
s.orSubsection (d) would declare that the title
leakdoes not expand or limit state regulatory
autho r ity.
://wiki
httpreas Sec. 2203(e) and (f). Subsection (e) No similar provision.


would allow the Secretary to set aside up
to 45,000 acres (and names one specific
special area that must be designated) in
which leases, if permitted, must prohibit
surface occupancy. The FLEIS identified
four special areas which together total
more than 52,000 acres, so the Secretary
would be required to select among these
areas or any others that may seem
significant. Section 2203(f) also would
state that the closure authority in the
ANWR title is the Secretarys sole
closure authority, which might limit

CRS-220
sion House Senate Comments
possible secretarial actions under the
Endangered Species Act.
uance and Revision ofSec. 2203(g). Regulations would beNo similar provision.
gulations required to be issued within 15 months of
enactment, and reviewed and revised
periodically in light of any significant
biological, environmental, or engineering
data coming to the Secretarys attention.
ing Procedures, BiddingSec. 2204. The Secretary would establishNo similar provision.
stem, Minimum Acreage procedures (a) to receive and consider
iki/CRS-RL33006nominations for areas to be included in a
g/wlease sale, (b) to hold the sales, and (c)provide for public notice and comment.
s.orThe bidding system would be by sealed
leakcompetitive cash bonus bids, and the first
://wikioffering would total at least 200,000acres. The first sale would be conducted
httpwithin 22 months of enactment, with
additional sales thereafter as industry
interest warranted.
t of Leases Sec. 2205. The Secretary could grantNo similar provision.
leases to the highest responsible qualified
bidder. Leases could not be transferred
to another party without approval of the
Secretary, acting in consultation with the
Attorney General.
rms and Conditions ofSec. 2206. Under §2206(a), leases wouldNo similar provision.


es; Project Laborprovide for at least a 12.5% royalty
reements payment; allow for seasonal closure of

CRS-221
sion House Senate Comments
the Coastal Plain to exploratory drilling
to protect caribou calving areas and other
species; require lessees to be responsible
for reclamation of adversely affected
lands in the Coastal Plain; and provide
that lessees could not delegate their
obligation to reclaim lands without
written approval of the Secretary. The
subsection would further require that the
reclamation standard be an ability to
support the uses of the land before
exploration and development, or “a
iki/CRS-RL33006higher or better use” as approved by the
g/wSecretary, and that the lease contain fish,
s.orwildlife, and environmental protection
leakstandards as required in §2203(a)(2).
The subsection would require that lessees
://wikiuse their best efforts to provide
httpemployment and contracts to Alaska
Natives and Native Corporations, and
would prohibit export of oil produced
under the lease.
-
Subsection 2206(b) would direct the
Secretary to require lessees to negotiate
project labor agreements (PLAs)
“recognizing the Government’s
proprietary interest in labor stability and
the ability of construction labor and
management to meet the particular needs
and conditions of projects to be
developed ....” (A PLA is an agreement
between a project owner or main



CRS-222
sion House Senate Comments
contractor and the union(s) representing
the craft workers for a particular project;
it establishes the terms and conditions of
work that will apply for the particular
proj ect.)
vironmental Protection Sec. 2207. This section contains mostNo similar provision.
(but not all) of the environmental
protection provisions of the title.
nificant Adverse Effect;Sec. 2207(a). Subject to theNo similar provision. This provision has been a focus of considerable
Acre Limit requirements in §2203 (see above), thedebate concerning (a) its applicability to the more
iki/CRS-RL33006Secretary would ensure that oil and gasthan 100,000 acres of Native lands in the Refuge,
g/wactivities on the Coastal Plain resulted inno significant adverse impact” on fish,(b) the facilities that would be limited; and (c) theeconomic and practical impacts of such a
s.orwildlife, their habitat, and thelimitation. For more information, see CRS Report
leakenvironment; require use of bestRS22143, Oil and Gas Leasing in the Arctic
://wikicommercially available technology; and“ensure that the maximum amount ofNational Wildlife Refuge (ANWR): the 2,000-AcreLimit.
httpsurface acreage covered by production
and support facilities, including airstrips
and any areas covered by gravel berms or
piers for support of pipelines, does not
exceed 2,000 acres on the Coastal Plain.
ent and Mitigation Sec. 2207(b). The Secretary would haveNo similar provision.


to require a site-specific analysis of the
probable effects of drilling and other
activities on fish, wildlife, and the
environment; and a plan to avoid or
reduce any significant adverse effect on
these resources. The plans developer
would have to consult with any agencies

CRS-223
sion House Senate Comments
with jurisdiction over matters mitigated
in the plan.
omulgating Regulations Sec. 2207(c). Before implementing theNo similar provision.
leasing program, the Secretary would be
required to promulgate “regulations,
lease terms, conditions, restrictions,
prohibitions, stipulations, and other
measures” to ensure that activities on the
Coastal Plain under this title were
consistent with the title’s environmental
requirements and purposes.
iki/CRS-RL33006
g/wmpliance with Otherronmental Laws andSec. 2207(d). This subsection would setout 21 requirements for theNo similar provision.


s.orquirements environmental standards in the leasing
leakprogram, to be implemented through
://wikiregulations, lease terms, etc. Theserequirements would include, among other
httpthings: complying with all applicable
state and federal environmental laws;
setting appropriate seasonal limits on
operations; prohibiting public access via
specified roads or other modes of
transportation; consolidating facilities;
treating and disposing of specified
wastes, avoiding (to the extent
practicable) streams, rivers, wetlands,
etc.; complying with reasonable
stipulations for cultural and archeological
resources; and other requirements.

CRS-224
sion House Senate Comments
ments To Be ConsideredSec. 2207(e). In developing theNo similar provision. The documents are (1) the 1999 Northeast
Secretary regulations, lease terms, etc., theNational Petroleum Reserve-Alaska Final
Secretary is to consider stipulations andIntegrated Activity Plan/Environmental Impact
standards in three specified documents.Statement, (2) the environmental protection
standards that governed the initial Coastal Plain
seismic exploration program, and (3) Appendix 2
of the August 9, 1983, agreement between Arctic
Slope Regional Corporation and the United States.
nsolidation of Facilities Sec. 2207(f). The Secretary would beNo similar provision.
directed to develop and update a plan to
consolidate facilities, avoid unnecessary
iki/CRS-RL33006duplication, site activities to minimize
g/wtheir environmental impacts, and use
s.orexisting facilities where practicable.
leaks to Coastal Plain Sec. 2207(g). The Secretary would beNo similar provision.
://wikirequired to manage the Coastal Plain toallow subsistence access, including the
httpuse of snowmobiles and motorboats (16
U.S.C. §3121), and to allow local
residents generally to have “reasonable
access to the Coastal Plain for
traditional uses.
pedited Judicial Review Sec. 2208. Section 2208 would requireNo similar provision. Subsections (a)(1) and (a)(2) appear to contradict
that any complaints seeking judicialeach other as to where suits are to be filed.
review be filed within 90 days. Section-
2208(a)(3) would limit the scope ofThe standard set forth in §2208(a)(3) for review is
review by stating that review of aunclear, but in this context arguably would make
Secretarial decision, includingoverturning a decision more difficult.


environmental analyses, would be limited
to whether the Secretary complied with

CRS-225
sion House Senate Comments
the terms of the ANWR Title, be based
on the administrative record, and that the
Secretarys analysis of environmental
effects ispresumed to be correct unless
shown otherwise by clear and convincing
evidence to the contrary.”
deral and State Distribution ofSec. 2209. This section would provideNo similar provision. Sec. 312 of the Senate bill includes a preference
venues; Low Income Homethat 50% of adjusted revenues be paid tofor using royalty oil and gas to benefit any federal
ergy Assistance Alaska, and the balance deposited in thelow-income energy assistance program. For more
U.S. Treasury as miscellaneous receipts,information on the LIHEAP program; see CRS
except for part of the federal share ofReport RL31865, Low Income Home Energy
iki/CRS-RL33006bonus bids that would be available to beAssistance Program (LIHEAP): Program and
g/wappropriated for low income homeFunding.
s.orenergy assistance, and a portion (not to
leakexceed $11 million in an unspent
balance, with $5 million available for
://wikiannual appropriation) that would go intoa fund to assist Alaska communities
httpunder §2212 in addressing local impacts
of energy development (see below).
Section 2209(c) would allow certain
revenues from bids for leasing to be
available for appropriation for energy
assistance for low-income households
under 42 U.S.C. §8621.
f Way Across theSec. 2210. This section would declareNo similar provision.


astal Plain that the provisions of 16 U.S.C. §3161
(an ANILCA provision containing a
congressional finding in support of a
single comprehensive statutory authority
for approval of transportation systems)

CRS-226
sion House Senate Comments
would not apply to oil and gas
transportation on the Coastal Plain. The
Secretary would have to ensure that
rights of way and easements would not
cause significant adverse effects on fish,
wildlife, subsistence resources, and the
environment, and that facilities were sited
or designed to avoid unnecessary
duplication of roads and pipelines.
Appropriate regulations would have to be
issued within 15 months of enactment, as
required in §2203(g).
iki/CRS-RL33006
g/wrface and Subsurface EstateSec. 2211. The Secretary would beNo similar provision.
s.ornveyance to Nativerequired to convey certain additional
leakrporations surface rights to the Kaktovik Inupiat
Corporation and certain subsurface rights
://wikito the Arctic Slope Regional Corporation.
httpcal Government Impact andSec. 2212. The Secretary would beNo similar provision. Under §2203(a), the Secretary is to establish and
mmunity Service Assistance authorized to use funds from the Coastalimplement a leasing program under the Mineral
Plain Local Government Impact AidLeasing Act, yet §2212 directs a revenue sharing
Assistance Fund for financial assistanceprogram different from that in the MLA, which
to eligible entities as a result of oil andmay raise validity questions. If the alternative
gas exploration and development in thedisposition were struck down and the revenue
Coastal Plain. A maximum of $5 millionprovisions were determined to be severable,
could be appropriated each year; theAlaska could receive 90% of ANWR revenues.


unappropriated balance in the fund would
be limited to a maximum of $11 million.

CRS-227
Set America Free (SAFE)
sion House Senate Comments
ort Title and FindingsSecs. 2301-2302. The Set America FreeNo similar provision.
Act of 2005. The findings in this title
would recognize predictions of growing
energy consumption and dependence
upon imported oil, and the accompanying
r i sks.
rposeSec. 2303. A U.S. commission wouldNo similar provision.
make recommendations for “a
iki/CRS-RL33006coordinated and comprehensive NorthAmerican energy policy that will achieve
g/wenergy self-sufficiency by 2025” for not
s.oronly the United States but Canada and
leakMexico as well.
://wikiited States Commission onSec. 2304. The panel would be calledNo similar provision.
http American EnergyUnited States Commission on North
eedomAmerican Energy Freedom. Citizens of
any of the three nations may be among
the 16 appointees to the commission,
which would submit a report on findings
and recommendations within a year. $10
million would be authorized for two
fiscal years to carry out the act.
American EnergySec. 2305. The President would submit aNo similar provision.


eedom Policyresponse or set of recommendations
pursuant to the commissions report
within 90 days of receipt of the report.

CRS-228
Grand Canyon Hydrogen-Powered Transportation Demonstration
sion House Senate Comments
and Canyon Hydrogen-Sections 2401-2406. The Secretaries ofNo comparable provision.
ered TransportationEnergy and the Interior would be
onstrationrequired to establish a research and
development program relating to
hydrogen-based transportation
technologies suitable for operations in
sensitive areas such as national parks.
Sec. 2405. Over the duration of theNo comparable provision.
iki/CRS-RL33006program, the Secretaries would report toCongress annually on ongoing and
g/wplanned activities.
s.or
leakSec. 2406. A total of $1.2 million wouldNo comparable provision.
be authorized over three years for the
://wikiprogram.
http
Additional Provisions
sion House Senate Comments
nd Energy Royalty ReliefSec. 2501. This provision, which wasNo comparable provision.


added as a floor amendment (H.Amdt.
97), would reduce by 50% any royalty
payments, excluding the costs of
processing the rights-of-way, for wind
energy generation on BLM lands that
otherwise would be paid to the Treasury.

CRS-229
sion House Senate Comments
This royalty relief provision would
terminate after 10 years of enactment or
after the Secretary of the Interior
declared that at least 10,000 megawatts
of electricity was available from
renewable sources on public lands,
whichever is sooner.
Studies
iki/CRS-RL33006sion House Senate Comments
g/w
s.oraska Natural Gas Pipeline No similar provision. Sec. 1303. Within six months of
leakenactment, and every six months
thereafter, FERC would be tasked with
://wikisubmitting a report to Congress
httpdescribing progress in licensing and
construction, and identifying issues
impeding progress.
up Fuel Capability Study No comparable section.Sec. 1306. This section would authorize
DOE to study the effect of obtaining and
maintaining liquid and other fuel backup
capability at gas-fired power generation
facilities, and other gas-fired industrial
facilities. The study would also address
methods Federal and State governments
might use to encourage installation of
backup fuel capability. The study would
also identify changes required in the



CRS-230
sion House Senate Comments
Clean Air Act (42 U.S.C. 7401 et seq.)
to allow natural gas generators to add
clean backup fuel capabilities. The effect
on the supply and cost of natural gas
would be analyzed. DOE would report
on the study along with recommendations
within 1 year.
dian Land Rights-of-WayNo comparable section.Sec. 1307. DOE and DOI would conduct
a joint study in consultation with
stakeholders of issues regarding energy
rights-of-way on tribal land. Within 1
iki/CRS-RL33006year of enactment they would submit a
g/wreport to Congress analyzing historic
s.orrates of compensation paid for energy
leakrights-of-way on tribal land. The report
would offer recommendations for
://wikiappropriate standards for faircompensation to tribes and would offer
httpan assessment of the tribal self-
determination and sovereignty interests
implicated.
bility of Scientific andNo comparable section.Sec. 1311. Within 2 years, DOE would
chnical Personnel report on the policies and procedures of
contractors operating a National
Laboratory or research facility that
interfere with the transfer of scientific
and technical personnel among the
Laboratories or facilities; and would
recommend means of facilitating
interlaboratory exchange of scientific and
technical personnel.



CRS-231
sion House Senate Comments
al Academy of SciencesNo comparable section.Sec. 1312. Within 90 days, DOE would
port arrange for the National Academy of
Sciences to study and identify obstacles
to accelerating the research,
development, demonstration, and
commercial application cycle for energy
technology; and the adequacy of DOE
policies and procedures for resolving
technology transfer-related disputes
between DOE’s contractors and the
private sector. The Academy report
would make recommendations to
iki/CRS-RL33006Congress.
g/w
s.orport on Research andNo comparable section.Sec. 1313. Within 180 days, DOE would
leakvelopment Programarrange with the National Academy of
aluation Methodologies Sciences to investigate and report on the
://wikiscientific and technical merits of anyevaluation methodology currently in use
httpor proposed for use in relation to the
scientific and technical programs of DOE
by the Secretary or other Federal official;
The Academy study would include any
other views or plans regarding the future
use of the evaluation methodology.
ral Gas Supply ShortageNo similar provision. Sec. 1320. Within 6 months of
port enactment, the Secretary of Energy is
directed to submit to Congress a report
on supply of, and demand for natural gas
over the period 2004-2015. The report
would analyze all aspects of gas markets,
as well as policy options for



CRS-232
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conservation, technology development
and other factors that would affect supply
and demand.
-
The secretary would be called upon to
consult with industry and academic
experts, and representatives of state and
local governments, and tribal and
consumer organizations.
dy of Availability of SkilledNo comparable section.Sec. 1337. The National Academy of
ers Sciences would be required to study the
iki/CRS-RL33006short-term and long-term availability of
g/wskilled workers to meet the energy and
s.ormineral security requirements of the
leakUnited States. The study would assess the
availability of skilled labor at both entry
://wikilevel and more senior levels. Submissionof the study to Congress would be
httprequired within two years, and would
include recommendations for future
actions needed to meet future labor
requirements.
Incentives for Innovative Technologies
sion House Senate Comments
initionsNo comparable provisionSec. 1401. This section would define
commercial technology” to mean a



CRS-233
sion House Senate Comments
technology in general use in the
commercial marketplace, but not a
technology in a demonstration project
funded by DOE. “Cost would be
defined in terms ofcost of a loan
guarantee” within the meaning of section
502(5)(C) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)(C)). An
Eligible project” is described in section
1403. ‘Guarantee’ would be defined in
terms ofloan guarantee” in section 502
of the Federal Credit Reform Act of 1990
iki/CRS-RL33006(2 U.S.C. 661a), and includes a loan
g/wguarantee commitment (as defined in
s.orsection 502 of the Federal Credit Reform
leakAct of 1990 (2 U.S.C. 661a)).
Obligation means the loan or other
://wikidebt obligation that is guaranteed under
httpthis section.
rms and ConditionsNo comparable provision.Sec. 1402. This section would guarantee
a loan for projects under this title only if
an appropriation for the cost has been
made, or a full payment received from
the borrower for the cost of the
obligation has been deposited into the
Treasury. The loan guarantee would not
exceed an amount equal to 80% of the
project cost of the facility that is the
subject of the guarantee. The Secretary
would make determinations that there is a
reasonable prospect of repayment of the
principal and interest by the borrower



CRS-234
sion House Senate Comments
and that the amount of the obligation
(when combined with amounts available
to the borrower from other sources)
would be sufficient to carry out the
project. The interest rate would not
exceed the prevailing private sector
interest rate for similar loans and risks.
The obligation would require full
repayment over a period not to exceed
the lesser of 30 years, or 90% of the
projected useful life of the financed
physical asset. If a borrower defaults on
iki/CRS-RL33006the obligation, the holder of the loan
g/wguarantee could demand payment from
s.orthe Secretary under conditions of
leakrepayment that account for unpaid
interest and unpaid principal, and permit
://wikiloan forbearance.
httpible Projects No comparable provisionSec. 1403. This section would provide
loan guarantees for projects that avoid,
reduce, or sequester air pollutants or
greenhouse gas emissions, and employ
new or significantly improved
technologies. These technologies would
include: renewable energy systems;
advanced fossil energy (including coal
gasification); hydrogen fuel cell for
home, industry or transportation;
advanced nuclear energy facilities;
carbon capture and sequestration;
efficient electrical generation,
transmission, and distribution; efficient



CRS-235
sion House Senate Comments
end-use energy; and production facilities
for fuel-efficient vehicles. Guarantees
would be made for integrated combined
cycle gasification projects which generate
electricity, produce energy from coal (of
not more than 13,000 Btu/lb and mined
in the western U.S.), and are located in a
taconite-producing region of the United
States. Facilities that generate
gasification streams used in a Fischer-
Tropsch process to produce ultra-clean
premium fuels would be eligible for loan
iki/CRS-RL33006guarantees, as would industrial projects
g/wthat gasify coal, biomass, or petroleum
s.orcoke to produce synthesis gas fuel for
leakwhich electricity accounts for at least
65% of the useful energy output.
://wiki
httpClean coal technologies receiving tax
credits would not be disqualified from
receiving a guarantee under this title.
thorization of AppropriationsNo comparable provision.Sec. 1404. This section would authorize
appropriated sums as necessary to
provide the cost of guarantees under this
title.



CRS-236
Climate Change
onal Climate Change Technology Deployment
sion House Senate Comments
eenhouse Gas IntensityNo comparable section.Sec. 1601. Would amend Title XVI of
ducing Technology Strategiesthe 1992 Energy Policy Act to add a new
Section 1610 that would establish a new
governmental structure to develop a
national response strategy to promote
technologies and practices to reduce
greenhouse gas intensity, coordinate
iki/CRS-RL33006federal climate change activities, identify
g/wbarriers to technologies that improve
s.orcarbon intensity and implement a
leaktechnology deployment program. The
Secretary of Energy would establish an
://wikiInteragency Coordinating Committee on
httpClimate Change Technology within 180
days of enactment and the Director of the
Office of Science and Technology Policy
would submit a national deployment
strategy within 18 months of enactment.
Within 180 days of receipt of the
strategy, the Secretary would establish a
Climate Change Technology Program to
assist the Committee in coordinating
necessary deployment activities, and a
Climate Change Science Program to
assist the Committee in coordinating
science related activities. Upon receipt of
the Strategy, the Secretary is also to
conduct an inventory of suitable carbon-



CRS-237
sion House Senate Comments
intensity-reducing technologies. In
addition, the Secretary would establish a
DOE Climate Change Technology
Working Group to identity barriers to
deployment of carbon intensity reducing
technologies. Using the inventory and
study of deployment barriers, the
Committee is to develop a program for
providing credit-based incentives to
eligible technologies based on criteria
outlined in the section.
iki/CRS-RL33006ate Infrastructure CreditNo comparable provision.Sec. 1602. Would amend Title XVI of
g/wthe 1992 Energy Policy Act to add a new
s.orSection 1611 that would establish a
leaktechnology deployment program to
promote technologies and practices to
://wikireduce greenhouse gas intensity. Theprogram would be implemented through
httpa Climate Credit Board created within the
DOE. The technology deployment
program would have an array of
incentives available to encourage
demonstration and deployment, including
direct loans, loan guarantees, lines of
credit, and production-incentive
payments.
-
Eligible projects could also receive
protection against what the section calls
regulatory failure,” where the federal or
state siting process delays a project
beyond a time frame specified by DOE.



CRS-238
sion House Senate Comments
Eligible projects include coal gasification
and liquefaction, carbon sequestration,
cogeneration technology, advanced
nuclear power, lower emission
transportation, renewable energy, and
transmission upgrades.
imate Change Technology Deployment in Developing Countries
iki/CRS-RL33006sion House Senate Comments
g/wimate Change TechnologyNo comparable section.Sec, 1611. This section would amend theAuthorization of appropriations are such sums as
s.orployment in DevelopingGlobal Environmental Protectionnecessary to carry out this part (other than section
leakuntriesAssistance Act of 1989 by adding a new736). Section 736 is the proposed State
Part C entitledTechnology DeploymentDepartment demonstration program section for 10
://wikiin Developing Countries. It would seteligible countries. No specific authorization for
httpup a complimentary program designed toappropriations is provided by the bill for that
encourage U.S. exports of technology toprogram.


reduce greenhouse gas intensity in
developing countries. The Department of
State would be the lead agency to
identify and inventory 25 greenhouse gas
emitting developing countries within 180
days of enactment, and update the
information every 18 months. The
Secretary of State would also provide
assistance, either directly or through
international agencies, to greenhouse gas
intensity reducing projects. The
Secretary of State would also coordinate
demonstration projects in at least 10

CRS-239
sion House Senate Comments
eligible countries according to criteria
identified by the section.
-
The United State Trade Representative
would be required to identify and
negotiate removal of trade barriers to
export of greenhouse gas intensity
reducing technology in developing
countries.
-
An interagency working group would be
established to implement a Greenhouse
iki/CRS-RL33006Gas Intensity Reducing Technology
g/wExport Initiative to promote U.S. exports
s.orof such technologies to developing
leak countries.
://wikise of the Senate on ClimatengeNo comparable section.Sec. 1612. This section is a Sense of theSenate resolution that human activities
httpare a substantial cause of greenhouse gas
accumulating in the atmosphere, resulting
in average temperatures to rise outside
natural variability, and that mandatory
steps are required to slow or stop the
growth in emissions.



Index of Senate Sections
House sections in italics have no comparable Senate section. Rather, they are the closest House section before
the indicated Senate section.
Senate billHouse billSenate billHouse billSenate billHouse bill
101 101 203 203 252(e)(f) 1701(e)
102 102 211 1501 253 1701(d)
103 103 211(a) 1502(a) 254 1701(f)
104 104 212(b) 1501(c) 261 1802
105 105 212(c) 1511 262 1803
106 107 212(d) 1512 263 1804
107 109 212(f) 1512 264 1806
108 109 213 1508 265 1809
121 122 222(a) 1525 266 1810
122 123 222(b) 1526 267 1811
123 124 222(b) 1531(2) 268 1814
124 125 223(c) 1504 269 1816
125 126 223(c) 1503 270 1815
126 126 223(c) 1505 271 1820
127 126 224(a) 1506(a) 272 1819
131 131 224(b) 1506(b) 281 231
132 132 224(c) 1513 282 243
133 132 224(d) 1506(c) 283 243
134 132 225 1506 291 209
135 136 226 1507 301 304
135 133 227 204 301 301
136 133 228 204 302 302
137 133 229 1510 303 304
138 134 230 1513 311 2001
139 - 1431372312093122002
232 1452
151 1616 313 2003
161 144 233 126 314 2004
162 147 234 1513 315 2005
163148241 - 2452043162006
251 - 2541701 located after
164 149 206 317 2007
201 201 251 1701(b) 318 2007
202 202 252 1701(c) 319 2008



Senate billHouse billSenate billHouse billSenate billHouse bill
320 2009 412 2103 721 711
321 2010 413 2104 722 754
321 329 414 2105 723 707
322 2011 415 2109 724 707
323 2012 416 2108 725 707
324 1616 501 501 731 751
325 1452 502 502 732 755
326 2019 503 503 733 756
327 2017 504 505 734 757
328 334 505 505 735 1614
341 2022 506 504 741 811
342 2023 601 601 742 811
343 2024 602 602 743 811
3442026603603751 - 757743A
345 2029 604 604 801 801
346 2018 605 605 801 809
3472033606606901 - 903900
3482033607607911(a,b & c)930
371 2053 608 608 911(d) 931
381 320 609 609 912 928
382 330 610 611 913 924
383 330 621 633 914 927
384 332 622 635 915 922
385 332 623 636 916 924(c)
386 333 624 640 921 934
387 2013 625 632 922 933A
388333631 - 635651923932(b)
389 332 701 701 924 932
391 358 702 701 925 933
401 401 703 704 931 945
402 402 704 704 932 939
403 403 705 707 933 945
404404706731934 - 935938
405 404 711 772 936 943
406 411 712 771 937 939
407412713772938 - 944939


411 2102 714 773

Senate billHouse billSenate billHouse billSenate billHouse bill
9459561012 - 101392112761266
9469471101 - 110390712771267
946 951 1104 1298 1278 1268
946 955 1105 924 1279 1269
946 954 1106 907 1280 1270
946 953 1107 1298 1281 1271
946 952 1201 1201 1282 1272
947 948 1211 1211 1283 1273
948 949 1221 1221 1284 1274
948 950 1222 1222 1285 1275
949 - 950957 - 9611223122412861276
951 968 1224 1226 1287 1277
952 964 1231 1231 1288 1292
953 - 955968D1232123212911295
956 441 1233 1234 1292 1297
957 967 1234 1235 1295 1297
958 968D 1235 1236 1301 1616
961 910 1236 1237 1302 1901
962 906 1241 1241 1303 2501
963 900 1242 1241 1304 1616
964 903 1251 1251 1305 968D
965904125212521306 - 13072501
966 904 1253 1253 1308 706
967 905 1254 1254 1309 774
968 902 1261 1281 1310 1616
969 - 9719061262 - 126312821311 - 13132501
981 968B 1264 1283 1314 1223
982 1450 1265 1284 1315 1298
1001 921 1266 1286 1316 1298
1002 911 1266 1285 1316 1237
1003913126712871317 - 13181298
10049141268 - 1270128713191601
1005 - 10069201271126113202501
1007 - 100810031272126213212051
1009 921 1273 1263 1322 2109
1010 920 1274 1264 1323 1605
1011 1002 1275 1265 1324 1606



Senate billHouse billSenate billHouse bill
1325 1608 1546 1303
1326 1609 1547 1304
132710031548 - 15491313
1327 1610 1550 1313
1328 - 1330161615511313
133112981552 - 15541316
133216161561 - 15731313
1333 1287 1601 2501
1334 - 1335161616022501
1336 775 1611 2501
1337 2501 1612 2501


1338 1616
1401 - 14042501
1500 1300
1501 - 15041313
1503 1306
1505 1306
1506 1303
1507 1306
1508 - 15091313
1511 1313
1512 - 15141322
1515 1302
1521 1312
1522 1317
1523 - 15241312
1525 1317
1526 1317
1527 1311
1528 1312
1529 1312
1531 1316
1532 - 15351316
1541 1302
1542 1313
1543 - 15441316
1545 1313

Appendix A: Hydraulic Fracturing
(Sec. 327 House Bill)
Before 1997, EPA had not considered regulating hydraulic fracturing for oil and
gas development, because it did not view this well-production process as an activity
subject to regulation under SDWA’s UIC program. In 1997, the 11th Circuit Court
of Appeals ruled that the injection of fluids for the purpose of hydraulic fracturing
constituted underground injection, that all underground injection must be regulated,
and that hydraulic fracturing of coalbed methane (CBM) wells in Alabama must be
regulated under the state’s UIC program (LEAF v. EPA, 118 F. 3d 1467).
Hydraulic fracturing involves the high-pressure injection of fluids into coal beds
to enhance the recovery of oil and natural gas from underground formations. Water-
based fluids are typically used as fracturing fluids; however, diesel fuel often is used
instead of water, and various chemicals are added to fracturing fluids.3 While
hydraulic fracturing has been used in the recovery of conventional oil and gas since
the 1950s, this practice has been used for CBM recovery mainly since the 1990s.
A growing concern is that, in many CBM-producing regions, the target coal
beds occur within underground sources of drinking water, and the fracturing process
injects fluids directly into the drinking water sources; EPA has determined that the
use of diesel fuel as a fracturing fluid introduces benzene and other toxic substances
directly into underground sources of drinking water.4 Also, because the process
fractures rock, fracturing can create new pathways for natural gas (primarily
methane) to enter drinking water aquifers. As the number of coalbed methane (CBM)
wells and the use of hydraulic fracturing have increased rapidly in recent years, so has
concern over the potential impact on water resources, particularly in the water-scarce
West. Very few studies have been done to evaluate these impacts.
In 2003, EPA’s National Drinking Water Advisory Council recommended that
EPA work to eliminate the use of diesel fuel and related additives in fracturing fluids
that are injected into formations containing drinking water sources. In 2003, EPA
entered into an agreement with three companies that provide most hydraulic
fracturing services (BJ Services, Halliburton Energy Services, and Schlumberger
Technology Corporation).5 Under this voluntary agreement, the companies


3 Environmental Protection Agency, Evaluation of Impacts to Underground Sources of
Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs, Washington,
D.C., June 2004, pp. 4-3 - 4-4.
4 Environmental Protection Agency, Evaluation of Impacts to Underground Sources of
Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs, pp. 1-6.
According to EPA, hydraulic fracturing of oil and gas found in conventional geologic traps
is well established, but hydraulic fracturing of coal beds is relatively new. Conventional
sites are usually very deep and involve saline ground water that is unsuitable for drinking
water. In contrast, formations that contain coal bed methane can be near the surface where
ground water may be used as a source of drinking water supplies. pp. 4-9 - 4-10.
5 Memorandum of Agreement Between the United States Environmental Protection Agency
(continued...)

conditionally agree to remove diesel fuel from CBM fluids injected directly into
drinking water sources, if cost-effective alternatives are available. EPA has not
sought to limit other toxic components in fracturing fluids, and other companies did
not agree to cease injecting diesel fuel into drinking water sources.
The National Drinking Water Advisory Council further recommended that EPA
continue to study the extent and nature of public health and environmental problems
that could occur as a result of hydraulic fracturing for coalbed methane production,
and defend its authority to implement the UIC program in a manner that protects
groundwater resources from contamination. However, oil and gas industry
representatives argue that regulation is unnecessary and would slow natural gas
development.
In 2004, EPA issued a report, based primarily on a review of the literature, that
concluded that the injection of hydraulic fracturing fluids into CBM wells poses little
threat to underground sources of drinking water and requires no further study;
however, EPA noted that very little documented research has been done on the
environmental impacts of injecting fracturing fluids.6 EPA also noted that estimating
the concentration of diesel fuel components and other fracturing fluids beyond the
point of injection was beyond the scope of its study.7 The report has been criticized
by some, and the EPA Inspector General has been asked to review a whistle-blower’s
assertions that EPA’s findings are scientifically unfounded.8 (For more information,
see CRS Report RL32873, Selected Environmental Provisions Related to the
Omnibus Energy Bill (H.R. 6), 109th Congress, and CRS Report RL32262, Selected
Legal and Policy Issues Related to Coalbed Methane Development.)
Appendix B: Oil and Gas Exploration and
Production Defined (Sec. 328, House Bill)
The issue of how oil and gas exploration and production facilities are defined
in the Clean Water Act (CWA) arises from stormwater permitting rules for small
construction sites and municipal separate storm sewer systems that were issued by
the Environmental Protection Agency (EPA) in 1999 and became effective March 10,
2003. Those rules, known as Phase II of the CWA stormwater program, require most
small construction sites disturbing one to five acres and municipal separate storm
sewer systems serving populations of up to 100,000 people to have a CWA discharge
permit. The permits require pollution-prevention plans describing practices for


5 (...continued)
and BJ Services Company, Halliburton Energy Services, Inc., and Schlumberger Technology
Corporation, Dec. 12, 2003.
6 Ibid. p. 4-1.
7 Ibid. p. 4-12.
8 Letter (and technical analysis) to Senators Wayne Allard and Ben Nighthorse Campbell
and Representative Diana DeGette from Weston Wilson, U.S. Environmental Protection
Agency, Region 8, Oct. 8, 2004.

curbing sediment and other pollutants from being washed by stormwater runoff into
local water bodies. Phase I of the stormwater program required construction sites
larger than five acres (including oil and gas facilities) and larger municipal separate
storm sewer systems to obtain discharge permits beginning in 1991.
As the March 2003 compliance deadline approached, EPA authorized a
two-year extension of the Phase II rules for small oil and gas construction sites to
allow the agency to assess the economic impact of the rule on that industry. In March
2005 EPA extended the exemption until June 2006 and said it would propose a
specific rule for small oil and gas construction sites by September 11, 2005. EPA
had initially assumed that most oil and gas facilities would be smaller than one acre
in size and thus excluded from the Phase II rules, but recent Department of Energy
data indicate that several thousand new sites per year would be of sizes subject to the
rule.
The provision in the House-passed version of H.R. 6 is identical to one in H.R.
6/S. 2095 in the 108th Congress, making EPA’s delay permanent and making it
applicable to construction activities at all oil and gas development and production
sites, regardless of size, including those previously covered by Phase I rules. Industry
has argued that the stormwater rule creates costly permitting requirements, even
though the short construction period for drilling sites carries little potential for
stormwater runoff pollution. Supporters say the amendment is intended to clarify
existing CWA language. Opponents argue that the provision does not belong in the
energy legislation, and that there is no evidence that construction at oil and gas sites
causes less pollution than other construction activities, which are regulated under
EPA’s stormwater program.
Appendix C: Clean Air Coal Program
(Sec. 441 House, Sec. 956 Senate)
A total of $500 million over FY2006-FY2010 would be authorized for pollution
control projects to control mercury, nitrogen dioxide, sulfur dioxide emissions,
particulate matter, or more than one pollutant; and allow use of the waste byproducts.
Additional authorizations totaling $2.5 billion over FY2007-FY2013 would be
provided for projects using coal-based electrical generation equipment and processes,
and associated environmental control equipment.
Project selection criteria would be based on significantly improving air quality,
replacing less efficient units, and improving thermal efficiency. Up to 25% of
projects would be cogeneration or other gasification projects. At least 25% of the
projects would be solely for electrical generation, with priority for those generating
less than 600 MW. Federal loans or loan guarantees would not exceed 30% of the
total funds obligated during any fiscal year. The federal share of projects funded
would not exceed 50%.
No technology funded by the program, or level of emissions reduction achieved
by funded projects, would be considered adequately demonstrated for purposes of
Sections 111, 169, or 171 of the Clean Air Act.



Appendix D: Price-Anderson
Nuclear Liability Coverage (Secs. 601-612)
Current Law. Under Price-Anderson, the owners of commercial reactors must
assume all liability for nuclear damages awarded to the public by the court system,
and they must waive most of their legal defenses following a severe radioactive
release (“extraordinary nuclear occurrence”). To pay any such damages, each
licensed reactor must carry financial protection in the amount of the maximum
liability insurance available, which was increased by the insurance industry from
$200 million to $300 million on January 1, 2003. Any damages exceeding that
amount are to be assessed equally against all covered commercial reactors, up to
$95.8 million per reactor (most recently adjusted for inflation on August 20, 2003).
Those assessments — called “retrospective premiums” — would be paid at an
annual rate of no more than $10 million per reactor, to limit the potential financial
burden on reactor owners following a major accident. According to the Nuclear
Regulatory Commission (NRC), 103 commercial reactors are currently covered by
the Price-Anderson retrospective premium requirement.
Funding for public compensation following a major nuclear incident, therefore,
would include the $300 million in insurance coverage carried by the reactor that
suffered the incident, plus the $95.8 million in retrospective premiums from each of
the 103 currently covered reactors, totaling $10.2 billion. On top of those payments,
a 5% surcharge may also be imposed, raising the total per-reactor retrospective
premium to $100.6 million and the total potential compensation for each incident to
about $10.7 billion. Under Price-Anderson, the nuclear industry’s liability for an
incident is capped at that amount, which varies depending on the number of covered
reactors, the amount of available insurance, and an inflation adjustment that is made
every five years. Payment of any damages above that liability limit would require
congressional approval under special procedures in the act.
The Price-Anderson Act also covers contractors who operate hazardous DOE
nuclear facilities. The liability limit for DOE contractors is the same as for
commercial reactors, excluding the 5% surcharge, except when the limit for
commercial reactors drops because of a decline in the number of covered reactors.
Because two closed reactors had been covered until recently (for a total of 105), the
liability limit for commercial reactors, minus the surcharge, had been $10.4 billion,
which remains the liability limit for DOE contractors. Price-Anderson authorizes
DOE to indemnify its contractors for the entire amount, so any damage payments for
nuclear incidents at DOE facilities would ultimately come from the U.S. Treasury.
However, the law also allows DOE to fine its contractors for safety violations, and
contractor employees and directors can face criminal penalties for “knowingly and
willfully” violating nuclear safety rules. However, Section 234A of the Atomic
Energy Act specifically exempts seven non-profit DOE contractors and their
subcontractors. Under the same section, DOE automatically remits any civil
penalties imposed on non-profit educational institutions serving as DOE contractors.
Policy Context. The Price-Anderson Act’s limits on liability were crucial in
establishing the commercial nuclear power industry in the 1950s. Supporters of the
Price-Anderson system contend that it has worked well since that time in ensuring



that nuclear accident victims would have a secure source of compensation, at little
cost to the taxpayer. However, opponents contend that Price-Anderson subsidizes
the nuclear power industry by protecting it from some or most of the financial
consequences of the worst conceivable accidents.
Because no new U.S. reactors are currently planned, missing the deadline for
extension has had little immediate effect on the nuclear power industry, as existing
reactors continue to be covered. For the first time in more than 20 years, however,
several U.S. utilities have announced that they are considering whether to build new
reactors. It is unlikely that any such projects would move forward without Price-
Anderson coverage. A lapse in Price-Anderson would also affect all subsequently
signed DOE nuclear facility contracts, which would have to use alternate
indemnification authority.
Appendix E: Electric Reliability Standards
(Sec. 1211)
In both the House- and Senate-passed bills, this provision would require that
FERC establish a regional advisory body if requested by at least two-thirds of the
states within a region that have more than half of their electric load served within that
region. The advisory body would be composed of one member from each
participating state in the region, appointed by the Governor of each state, and could
provide advice to the ERO or FERC on reliability standards, proposed regional
entities, proposed fees, and any other responsibilities requested by FERC. The entire
reliability provision would not apply to Alaska or Hawaii. Under the House version,
the state of New York would be authorized to develop rules that would result in
greater reliability for New York, as long as those rules do not result in lower
reliability for neighboring states.
Both House- and Senate- passed H.R. 6 would require the ERO to be funded
through contributions from its utility members. The Congressional Budget Office
(CBO) determined that, under the Unfunded Mandates Reform Act (UMRA) of
1995,9 these contributions would constitute an unfunded mandate both on the private
sector and intergovernmentally, because both private sector utilities and those run by
local governments (munis) would be obligated to contribute. The House-passed H.R.
6 would limit the total amount “of all dues, fees, and other charges collected by the
ERO” to $50,000,000 annually, with no adjustment for inflation, through 2015. This
limit was initially included in the House-passed H.R. 6 to avoid a point of order
based on the budget resolution. UMRA limits would not apply to dues collected from
Canadian utilities, and it is unclear whether the $50,000,000 limit on the ERO budget
applies to fees collected from U.S. and Canadian utilities or just the U.S. utilities’
contributions.10 This limit would restrict the cost of this mandate to less than the


9 P.L. 104-4, 109 Stat. 48 et seq.
10 According to NERC, Canadian utilities contribute approximately 12.5% to the total NERC
budget, leaving U.S. utilities contributing approximately $45,500,000 to the 2005 NERC
(continued...)

threshold at which UMRA subjects congressional consideration of legislation
containing intergovernmental mandates to a point of order. The 2005 budget for
NERC and all of its regional entities, however, is $51,950,000, of which munis
contributed approximately $6,370,000, and the ERO would be required to engage in
functions beyond what NERC already performs. One new function is the ability of
the ERO to impose and collect penalties. A $50,000,000 cap on all dues, fees, and
other charges that can be collected by the ERO could limit the penalties that could
be collected by the ERO.
CBO provided no separate estimate for the cost of the mandates in this subtitle,
but estimated that House-passed H.R. 6 as a whole contains both intergovernmental
and private sector unfunded mandates that would exceed the applicable thresholds.
The CBO estimate stated that the cost of complying with intergovernmental
mandates, in aggregate, could be significant and likely would exceed the threshold
established in UMRA ($62 million in 2005, adjusted annually for inflation) at some
point over the next five years because CBO expects future damage awards for state
and local governments under the bill’s safe harbor provision (title XV) would likely
be reduced.11
House-passed Section 1211(c) would authorize to be appropriated not more
than $50 million per year for fiscal years 2006 through 2015 for all activities under
the amendment to the Federal Power Act that creates the ERO. This is in addition
to the dues paid by the ERO members. It is unclear whether FERC would be the
sole recipient of the $50 million annual authorization since section 1211(b)
specifically states that the ERO, and its regional entities, are not Departments,
agencies, or instrumentalities of the United States Government.
The proposed legislation is intended to provide federal jurisdiction over
activities that are required to support reliability of the U.S. bulk power system.
Clarifying FERC authority to establish and regulate an ERO is intended to improve
reliability as restructuring of the U.S. bulk power system proceeds. Similar
provisions were included in the conference report of H.R. 6 in the 108th Congress.
Advocates of giving FERC authority over the ERO contend that central
jurisdiction would provide more accountability. FERC would be ultimately
responsible for reliability issues. If the penalties employed by the ERO were not
successful, then FERC would have the authority to enforce penalties for entities that
did not comply with reliability standards. Establishing this new relationship between
FERC and the ERO would have the potential to improve coordination between
market functions and reliability functions. Similar legislation has been introduced
during the past several sessions of Congress, but has not been enacted, despite
general support. Minor opposition to this proposal has centered on giving FERC
jurisdiction over bulk power system reliability, contending that FERC has no


10 (...continued)
budget.
11 Congressional Budget Office. Letter to Honorable David Dreier. April 19, 2005. The
safe harbor provision would potentially provide a liability shield for all those who might be
sued for supplying a defective renewable fuel or methyl tertiary butyl ether (MTBE).

experience in this area. If FERC is given this authority, it would have to rely on the
ERO for much of its expertise. Placing FERC in this position may add to the
uncertainty associated with the changes in institutional structure as FERC takes on
this new role.
Appendix F: Standard Market Design
(House Sec. 1235, Senate Sec. 1234)
Under the NOPR, FERC would assert jurisdiction over all power transmission,
including service to bundled retail customers. Commissioners from 15 states
(Alabama, Arkansas, California, Georgia, Idaho, Kentucky, Louisiana, Mississippi,
New Hampshire, North Carolina, South Carolina, Oregon, South Dakota,
Washington, and Wyoming) have argued that the SMD proposal usurps state
authority. On August 15, 2002, state regulators from 22 states and the District of
Columbia (Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Montana, North
Dakota, Ohio, Oklahoma, Texas, Wisconsin, Delaware, the District of Columbia,
New Jersey, New York, Pennsylvania, West Virginia, Connecticut, Maine,
Massachusetts, New Hampshire, and Rhode Island) released a statement that “voiced
support for FERC’s ongoing effort to remedy undue discrimination in the use of the
nation’s interstate high voltage transmission system in order to create a truly
competitive bulk power market.” Some industry groups have voiced concerns about
the implementation of SMD.
On April 28, 2003, FERC staff issued Wholesale Power Market Platform, a
White Paper intended to clarify FERC’s SMD proposal. The White Paper responds
to approximately 1,000 sets of formal comments submitted to FERC. In the White
Paper, FERC states its intention to eliminate a proposed requirement that utilities join
an Independent Transmission Provider. Instead, the final rule would require utilities
to join an RTO or ISO. In the NOPR, FERC proposed to assert jurisdiction over the
transmission component of bundled retail service. The White Paper reverses this
position and states that the final rule will not assert new FERC jurisdiction over
bundled retail sales.
Some state officials have expressed concern that the proposed rule would
infringe on state authority. FERC responded to this in the White Paper by clarifying
that the final rule would not include a requirement for a minimum level of resource
adequacy. In addition, the final rule would eliminate the NOPR’s requirement that
Firm Transmission Rights be auctioned. The White Paper noted that each RTO or
ISO would need to have a cost recovery policy outlined in its tariff, but each region
may differ on how participant funding would be used. In addition, FERC stated that
the final rule would allow for phased implementation to address regional differences.
The report language that accompanied the FY2003 Consolidated Appropriations
Resolution asked the Department of Energy to analyze the SMD NOPR’s impact on
wholesale electricity prices, and the safety and reliability of generation and



transmission facilities.12 DOE issued its report to Congress on April 30, 2003, but
did not include changes from FERC’s White Paper in its analysis. DOE, in part,
quantitatively analyzed the wholesale and retail price impacts of SMD using two
economic models: General Electric’s Multi-Area Production Simulation (MAPS) and
DOE’s Policy Office Electricity Modeling System (POEMS).
Some of the assumptions that DOE uses are: the annual increase in electricity
demand is assumed to be approximately 1.8% per year from 2005 to 2020; most
regions are assumed to have reserve margins of 15%; current environmental laws and
regulations are assumed to apply; generator efficiency for fossil steam plants is
assumed to be 2% to 4% higher in new RTO regions with SMD. In the non-SMD
case, the models were not able to take into account freezes on retail rates in states
that are transitioning to competitive markets, and no increase in transmission capacity
is assumed. Under the SMD case, a 5% increase in transmission capability by 2005
is assumed by DOE due to improved operational efficiency at regional seams. In
addition, DOE assumes that adopting the SMD would result in some savings that are
difficult to quantify but would be a result of several factors including the
consolidation of control areas from the currently existing 150, the possible avoidance
of capital cost and software expenditures that would have been needed at existing
control centers, improved regional planning, and consistency of market design. DOE
assigns a 10% savings due to these efficiency improvements. DOE believes that the
assumptions used in the models are conservative and result in an underestimation of
the net economic benefits of the SMD.
DOE calculates the median cost of FERC’s SMD rule to be about $760 million
per year, or about 21 cents per megawatt-hour. The model’s range for uncertainties
is estimated to be about $100 million. The cost varies significantly by region,
ranging from 47 cents per megawatt-hour for GridFlorida to 12 cents per megawatt-
hour for PJM.13 Regions with existing RTOs have zero additional costs. Under the
SMD case, the effects of SMD on retail rates are influenced to a significant extent by
whether the states in question have cost-of-service regulation or competitive retail
choice. DOE found that for some importing regions with cost-based rates, the net
result could be increased costs associated with wholesale purchases, which would be
passed through to retail customers. For some exporting regions with cost-based rates,
additional utility revenues from exports are expected to lead to lower retail prices for
the region under the SMD case. In contrast, in regions in which most states have
adopted retail choice, increased electricity exports are expected to lead to higher
market-clearing prices in the short-term markets and somewhat higher consumer
prices. However, in areas such as California that are projected to see increased
imports, lower wholesale prices and lower prices for consumers are expected. DOE
found that the magnitude of the projected changes, both positive and negative,
decreases through 2020. Overall, DOE projects the net benefit for all consumers
would be about $1 billion per year over the first six years, after factoring in the
estimated $760 million per year and RTO costs. Over the long-term (2016-2020), the


12 Conference report H.Rept. 108-10 to accompany H.J.Res. 2.
13 The PJM control area includes all or parts of Delaware, Illinois, Indiana, Kentucky,
Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia,
West Virginia and the District of Columbia.

net benefit is expected to be about $700 million per year. However, the projected
change in retail prices varies by region. The mid-Atlantic region is expected to see
a 4% decrease in retail prices, but Illinois, Wisconsin, and Arizona are expected to
have a 3% increase in retail prices as a result of SMD.
Appendix G: Cogeneration and Small Power
Production Purchase and Sale Requirements
(Sec. 1253)
In addition to PURPA, the Fuel Use Act of 1978 (FUA) helped qualifying
facilities (QFs) become established.14 Under FUA, utilities were not permitted to use
natural gas to fuel new generating technology. QFs, which are by definition not
utilities, were able to take advantage of abundant natural gas as well as new
generating technology, such as combined-cycle plants that use hot gases from
combustion turbines to generate additional power. These technologies lowered the
financial threshold for entrance into the electricity generation business as well as
shortened the lead time for constructing new plants. FUA was repealed in 1987, but
by this time QFs and small power producers had gained a portion of the total
electricity supply.
This influx of QF power challenged the cost-based rates that previously guided
wholesale transactions. Before implementation of PURPA, FERC approved
wholesale interstate electricity transactions based on the seller’s costs to generate and
transmit the power. Since nonutility generators typically do not have enough market
power to influence the rates they charge, FERC began approving certain wholesale
transactions whose rates were a result of a competitive bidding process. These rates
are called market-based rates.
This first incremental change to traditional electricity regulation started a
movement toward a market-oriented approach to electricity supply. Following the
enactment of PURPA, two basic issues stimulated calls for further change: whether
to encourage nonutility generation and whether to permit utilities to diversify into
non-regulated activities.
The Energy Policy Act of 1992 (EPACT) removed several regulatory barriers
for entry into electricity generation to increase competition of electricity supply.15
However, EPACT does not permit FERC to mandate that utilities transmit exempt
wholesale generator (EWG) power to retail consumers (commonly called “retail
wheeling” or “retail competition”), an activity that remains under the jurisdiction of
state public utility commissions. PURPA began to shift more regulatory
responsibilities to the federal government, and EPACT continued that shift away
from the states by creating new options for utilities and regulators to meet electricity
demand.


14 P.L. 95-620.
15 P.L. 102-486.

Proponents of PURPA repeal — primarily investor-owned utilities (IOUs)
located in the Northeast and in California — argue that their state regulators’
“misguided” implementation of PURPA in the early 1980s has forced them to pay
contractually high prices for power they do not need. They argue that, given the
current environment for cost-conscious competition, PURPA is outdated. The
PURPA Reform Group, which promotes IOU interests, strongly supports repeal of
§210 of PURPA contending that the current law’s mandatory purchase obligation is
anti-competitive and anti-consumer.
Opponents of mandatory purchase requirement repeal (independent power
producers, industrial power customers, most segments of the natural gas industry, the
renewable energy industry, and environmental groups) have many reasons to support
PURPA as it stands. Mainly, their argument is that PURPA introduced competition
in the electric generating sector and, at the same time, helped promote wider use of
cleaner, alternative fuels to generate electricity. Since the electric generating sector
is not yet fully competitive, they argue, repeal of PURPA would decrease
competition and impede the development of the renewable energy industry.
Additionally, opponents of PURPA repeal argue that it would result in less
competition and greater utility monopoly control over the electric industry. Some
state regulators have expressed concern that §210 repeal would prevent them from
deciding matters currently under their jurisdiction.
Appendix H: Repeal of the
Public Utility Holding Company Act of 1935
(House Sec. 1263, Senate Sec. 1273)
Historically, electricity service was defined as a natural monopoly, meaning that
the industry has (1) an inherent tendency toward declining long-term costs, (2) high
threshold investment, and (3) technological conditions that limit the number of
potential entrants. In addition, many regulators have considered unified control of
generation, transmission, and distribution as the most efficient means of providing
service. As a result, most people (about 75%) are currently served by a vertically
integrated, investor-owned utility.
As the electric utility industry has evolved, however, there has been a growing
belief that the historic classification of electric utilities as natural monopolies has
been overtaken by events and that market forces can and should replace some of the
traditional economic regulatory structure. For example, the existence of utilities that
do not own all of their generating facilities, primarily cooperatives and publicly
owned utilities, has provided evidence that vertical integration has not been necessary
for providing efficient electric service. Moreover, recent changes in electric utility
regulation and improved technologies have allowed additional generating capacity
to be provided by independent firms rather than utilities.
The Public Utility Holding Company Act and the Federal Power Act (FPA) of
1935 (Title I and Title II of the Public Utility Act) established a regime of regulating
electric utilities that gave specific and separate powers to the states and the federal
government. A regulatory bargain was made between the government and utilities.



In exchange for an exclusive franchise service territory, utilities must provide
electricity to all users at reasonable, regulated rates. State regulatory commissions
address intrastate utility activities, including wholesale and retail rate-making. State
authority currently tends to be as broad and as varied as the states are diverse. At the
least, a state public utility commission will have authority over retail rates, and often
over investment and debt. At the other end of the spectrum, the state regulatory body
will oversee many facets of utility operation. Despite this diversity, the essential
mission of the state regulator in states that have not restructured is the establishment
of retail electric prices. This is accomplished through an adversarial hearing process.
The central issues in such cases are the total amount of money the utility will be
permitted to collect and how the burden of the revenue requirement will be
distributed among the various customer classes (residential, commercial, and
industrial).
Under the FPA, federal economic regulation addresses wholesale transactions
and rates for electric power flowing in interstate commerce. Federal regulation
followed state regulation and is premised on the need to fill the regulatory vacuum
resulting from the constitutional inability of states to regulate interstate commerce.
In this bifurcation of regulatory jurisdiction, federal regulation is limited and
conceived to supplement state regulation. FERC has the principal functions at the
federal level for the economic regulation of the electric utility industry, including
financial transactions, wholesale rate regulation, transactions involving transmission
of unbundled retail electricity, interconnection and wheeling of wholesale electricity,
and ensuring adequate and reliable service. In addition, to prevent a recurrence of the
abusive practices of the 1920s (e.g., cross-subsidization, self-dealing, pyramiding,
etc.), SEC regulates utilities’ corporate structure and business ventures under
PUHCA.
The electric utility industry has been in the process of transformation. During
the past two decades, there has been a major change in direction concerning
generation. First, improved technologies have reduced the cost of generating
electricity as well as the size of generating facilities. Prior preference for large-scale
— often nuclear or coal-fired — powerplants has been supplanted by a preference
for small-scale production facilities that can be brought on line more quickly and
cheaply, with fewer regulatory impediments. Second, this has lowered the entry
barrier to electricity generation and permitted non-utility entities to build profitable
facilities.
One argument for additional PUHCA change has been made by electric utilities
that want to further diversify their assets. Currently under PUHCA, a holding
company can acquire securities or utility assets only if the SEC finds that such a
purchase will improve the economic efficiency and service of an integrated public
utility system. It has been argued that reform to allow diversification would improve
the risk profile of electric utilities in much the same way as in other businesses: the
risk of any one investment is diluted by the risk associated with all investments.
Utilities have also argued that diversification would lead to better use of
under-utilized resources (due to the seasonal nature of electric demand). Utility
holding companies that have been exempt from SEC regulation argue that PUHCA
discourages diversification because the SEC could repeal exempt status if exemption
would be “detrimental to the public interest.”



For a number of years there has been significant bipartisan congressional
support for repealing much of PUHCA. Since the 1980s, the Securities and
Exchange Commission has testified before Congress that many provisions of
PUHCA are no longer relevant and other provisions are redundant with state and
other federal regulations.16 However, as a result of Enron’s dealings and collapse,
some in Congress have taken a somewhat different view toward significantly
amending or repealing PUHCA.17 Even though Enron had claimed exemption from
PUHCA, on February 6, 2003, Securities and Exchange Commission Chief
Administrative Law Judge Brenda P. Murray denied Enron’s PUHCA exemption
applications of April 12, 2000, and February 28, 2002, amended on May 31, 2002.18
In the case of Enron, PUHCA, and many other laws, did not deter or prevent
fraudulent filing of information with the SEC.
State regulators have expressed concerns that increased diversification could
lead to abuses, including cross-subsidization: a regulated company subsidizing an
unregulated affiliate. Cross-subsidization was a major argument against the creation
of exempt wholesale generators (EWGs) and has reemerged as an argument against
further PUHCA change. In the case of electric and gas companies, non-utility
ventures that are undertaken as a result of diversification may benefit from the
regulated utilities’ allowed rate of return. Moneymaking non-utility enterprises
would contribute to the overall financial health of a holding company. However,
unsuccessful ventures could harm the entire holding company, including utility
subsidiaries. In this situation, opponents fear that utilities would not be penalized for
failure in terms of reduced access to new capital, because they could increase retail
rates.
Appendix I: Continuation of Transmission
Security Order (Sec. 1441)
In 2002, a 24-mile 330-megawatt (MW) transmission cable was installed
beneath the seabed of Long Island Sound between Connecticut and Long Island.
Shortly after the line was installed, it was determined that in several places the cable
was not buried to depths specified in permits issued by the U.S. Army Corps of
Engineers (Corps) and the Connecticut Department of Environmental Protection
(CDEP). While the Corps determined that operation of the cable would not pose
environmental or navigational harm and did not object to the operation of the
transmission line, the CDEP objected to the operation of the line based on procedural
grounds. CDEP’s position was that operation of the cable would violate the permit,
unless the cable was installed to the permitted depth requirements. CDEP denied a
request to modify the permit.
On June 12, 2003, Cross-Sound, the owners of the cable, filed a new permit
application with the CDEP. However, on June 26, 2003, Connecticut Governor John


16 Testimony is available at [http://www.sec.gov/news/testimony/021302tsich.htm].
17 See [http://www.house.gov/commerce_democrats/press/107ltr129.shtml].
18 Initial Decision Release No. 222 (File No. 3-10909) can be found at [http://www.sec.gov/
litigation/alj dec/id222bpm.htm] .

Rowland signed into law a bill extending a prohibition on considering permits or
applications related to certain infrastructure crossings of the sound. On August 14,

2003, the Northeast experienced a widespread electric blackout. In response,


Secretary of Energy Spencer Abraham issued an emergency order to energize the
cross-sound cable. This order was rescinded on May 7, 2004. Long Island Power
Authority (LIPA) and Cross-Sound filed a petition with FERC to have the cable re-
energized by July 1, 2004. At a June 17, 2004, FERC meeting, Chairman Pat Wood
asked the parties to negotiate a settlement within seven days, after which FERC was
ready to issue an order. On June 25, 2004, the parties came to an agreement and the
cross-sound cable was re-energized.
Appendix J: Deadline for Decision on Appeals
under the Coastal Zone Management Act
(Sec. 2013)
Current Law. The consistency provisions in Section 307 of the CZMA guides
state consideration of whether a proposed federal activity will be compatible with a
federally approved and state-administered coastal zone management plan. Since the
first state plan was approved in the mid-1970s, there has been considerable friction
between states and federal agencies over the reach of the consistency provisions.
States have sought broader application to have a strong role in decisions about the
largest possible array of proposed federal activities, while the federal government has
sought narrower interpretations, especially relating to offshore energy development.
Determining an exact boundary separating actions on which the state is to have a
primary role in halting a proposal from actions on which the state does not have such
powers has been a subject of federal appeals and litigation, including decisions by the
U.S. Supreme Court (notably Secretary of the Interior v. California, 464 U.S. 312
(1984)), in which the court determined that the sale of oil and gas leases on the outer
continental shelf was not an act affecting the coastal zone).
When a state and a federal agency cannot reach an agreement on a consistency
determination, the law and regulations lay out an elaborate process for resolving that
disagreement. Most disagreements are resolved through this process, but if no
agreement can be reached, the final step is an appeal to the Secretary of Commerce
to make a decision. Appeals to the Secretary have not been common. According to
citations of appeals posted on the website of the Office of Ocean and Coastal
Resource Management in the National Oceanic and Atmospheric Administration
(NOAA) (viewed May 12, 2005), 38 consistency determinations were appealed to the
Secretary between 1984 and 1999, and 19 of them involved proposed activities by oil
companies. The appeals process, like all other aspects of consistency, is currently
covered under a final rule issued by NOAA in the December 8, 2000, Federal
Register.
Section 319 in current law has less detail than the proposed amendment. It
states that the Secretary will either issue a final decision on the appeal or publish a
notice in the Federal Register stating why a decision cannot be reached within 90
days after the record has closed. If the Secretary publishes a notice that a decision



has not been made, that decision must be issued within 45 days of the date of
publication of that notice.
Policy Context. Consistency appeals have been contentious and, in some
instances, the appeals process has dragged on for long time periods. The 1996
amendments in Section 319 were meant to address those delays by establishing some
time limits. This has proved unsatisfactory to some, who seek additional statutory
language that would remove decisions about deadlines from the unpredictable
rulemaking process by defining the length of component steps in law, and therefore
the overall process, after an appeal to the Secretary has been filed.
The consistency provision creates an unusual relationship where states can halt
most federal actions that are incompatible with state interests. When enacted, the
consistency requirement was viewed as a main reason why states would pursue
development and implementation of coastal plans since the other incentive to
participate, federal financial grants, always has been modest. This view appears to
have some validity, as 34 of the 35 eligible states and territories are now
administering federally approved coastal management programs.
Appendix K: Domestic Offshore Energy
Reinvestment (Sec. 2053)
Policy Context. This is the most recent of repeated efforts to allocate a
portion of federal offshore oil and gas revenues to coastal states to assist them inth
addressing the impacts of these activities. Recent Congresses, starting with the 105,
considered numerous similar legislative proposals. These proposals came to beth
known as CARA, or the Conservation and Reinvestment Act. In the 106 Congress,
the House passed a version of CARA on May 11, 2000 (H.R. 701). Some of these
proposals were also reflected in the Clinton Administration’s Lands Legacy Initiative
proposal in 2000, and also a one-time $150 million appropriation provided in the
FY2001 Commerce appropriations legislation (P.L. 106-553) for coastal impact
assistance.
Support for the CARA proposals, which would also have funded many related
federal natural resource protection programs, grew as the budget deficit of the early
and mid-1990s was replaced by forecasts of a surplus, as protecting natural resources
came to be viewed as part of the effort to address sprawl, and as efforts and support
to secure federal funding for coastal resource protection and restoration efforts grew.
With the replacement of the budget surplus forecast with deficit forecasts and
changing national priorities since the 9/11 terrorist attacks, broad support for wide-
ranging legislation like CARA has declined, but interest has remained in returning
a portion of the money currently paid to the federal government by private companies
leasing offshore areas to those locations most affected by the offshore activity.