Omnibus Energy Efficiency and Renewable Energy Legislation: A Side-by-Side Comparison of Major Major Provisions in House-Passed H.R. 3221 with Senate-Passed H.R. 6

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In the first session of the 110^th Congress, the House and the Senate passed two markedly different
versions of omnibus energy efficiency and renewable energy legislation. This report compares
major provisions in House-passed H.R. 3221 and Senate-passed H.R. 6. Key legislative
challenges remain. First, there are significant differences between the two bills. Second, because
the House and Senate have passed different measures, further action will be required in at least
one chamber before a conference committee could be arranged. Third, concerns about certain oil
and natural gas provisions, and the lack of measures to support increased oil and gas production,
have led the Administration to threaten to veto each bill. Highlights of major provisions include:
• Renewable Fuels Standard (RFS). The Senate bill would set a modified standard
that starts at 8.5 billion gallons in 2008 and rises to 36 billion gallons by 2022.
The House bill has no RFS provision.
• Corporate Average Fuel Economy (CAFE). The Senate bill would set a target of
35 miles per gallon for the combined fleet of cars and light trucks by model year

2020. The House bill has no CAFE provision.

• Renewable Energy Portfolio Standard (RPS). The House bill would set a
minimum standard that would start at 2.75% in 2010 and rise steadily to a peak
of 15% in 2020. The Senate bill has no RPS provision.
• Offshore Oil and Gas Royalties. The House bill would establish royalties, or
alternative payments, for certain federal leases established in 1998 and 1999. The
Senate bill has no provision.
• Repeal of Oil and Gas Tax Incentives. The House bill would obtain tax revenue
offsets by reducing subsidies for oil and natural gas production. The Senate bill
has no provision.
• Renewable Energy Electricity Production Tax Credit (PTC). The House bill
would extend the PTC for four years, and expand it to include some additional
resources. The Senate bill has no provision.
• Other Tax Incentives. The House bill would extend several investment tax credits
covering solar energy and energy efficiency in residential and commercial
sectors. The Senate bill has no provision.
• Energy Efficiency Equipment Standards. Key differences involve standards for
residential refrigerators, freezers, refrigerator-freezers, metal halide lamps, and
commercial walk-in coolers and freezers.
• Loan Guarantees. The House bill would give new loan authority to a wider
variety of projects. The Senate bill would prevent appropriations acts from
limiting the use of non-appropriated funds.

Introduc tion ..................................................................................................................................... 1
Senate Action on H.R. 6..................................................................................................................2
House Action on H.R. 3221.............................................................................................................2
Challenges and Next Steps..............................................................................................................2
Informal House-Senate Negotiations..............................................................................................3
Comparing the House and Senate Bills...........................................................................................4
Table 1. List of Provisions...............................................................................................................4
Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6................................6
Appendix A. House-Passed Version of H.R. 3221, Division A: “New Direction for
Energy Independence, National Security, and Consumer Protection Act”.................................20
Appendix B. Senate-Passed Version of H.R. 6: “Renewable Fuels, Consumer Protection,
and Energy Efficiency Act”........................................................................................................35
Author Contact Information..........................................................................................................44

In the first session of the 110^th Congress, the House and the Senate passed two markedly different
versions of omnibus energy efficiency and renewable energy legislation.
The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy
Efficiency Act of 2007, passed the Senate on June 21, 2007. The key provisions of the Senate-
passed H.R. 6 are appliance efficiency standards, an increase of the renewable fuel standard
(RFS) to 36 billion gallons by 2022, and an increase of the combined corporate average fuel
economy (CAFE) standards to 35 miles per gallon (mpg) by 2020. Tax provisions and a
renewable energy portfolio standard (RPS) were not included.
The House passed H.R. 3221 on August 4, 2007. H.R. 3221 has two divisions. Division A
contains the New Direction for Energy Independence, National Security, and Consumer
Protection Act, which has nine titles An adopted floor amendment (H.Amdt. 748) added a 15%
renewable portfolio standard (RPS). Division B, the Renewable Energy and Energy Conservation
Tax Act of 2007, contains the House-approved version of H.R. 2776. It adds four titles to H.R.
3221 that include a four-year extension of the renewable electricity production tax credit and
other efficiency and renewables incentives.
This report compares the major provisions of the House version of H.R. 3221, and the Senate
version of H.R. 6. (For more details on the provisions in these two bills, see the appendices to this
report. For more details on the legislation that led to the omnibus bills, see CRS Report RL33831, ^th
Energy Efficiency and Renewable Energy Legislation in the 110 Congress. For more details on
the tax provisions, see CRS Report RL33578, Energy Tax Policy: History and Current Issues.)
The following analysts in the CRS Resources, Science, and Industry Division contributed to this
report:
• Amy Abel, transmission and electric utilities, 7-7239
• Robert Bamberger, fuel economy standards, 7-7240
• Lynne Corn, wildlife and habitats, 7-7267
• Susan Fletcher, international climate cooperation, 7-7231
• Peter Folger, carbon storage, 7-1517
• Mark Holt, loan guarantees, 7-1704
• Marc Humphries, oil and natural gas royalties, 7-7264
• Nic Lane, marine energy, 7-7905
• Salvatore Lazzari, energy taxes, 7-7825
• Robert Pirog, energy prices, 7-6847
• Randy Schnepf, agriculture-based energy, 7-4277
• Brent Yacobucci, biofuels, 7-9662

The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy
Efficiency Act of 2007, was derived primarily from S. 1419, which, in turn, was composed from
four major bills: the Energy Savings Act (S. 1321), the Public Buildings Cost Reduction Act (S.

992), the Ten-in-Ten Fuel Economy Act (S. 357), and the Energy Diplomacy and Security Act (S.

193). A summary of the Senate-passed version of H.R. 6 is presented in CRS Report RL33831, ^th

Energy Efficiency and Renewable Energy Legislation in the 110 Congress. That report also
contains descriptions of all the bills that composed the Senate version of H.R. 6.
An RPS amendment (S.Amdt. 1537) was introduced during Senate floor action on the proposed
substitute (S.Amdt. 1502) to H.R. 6. The RPS amendment proposed setting a target of 15% by

2020. No action was taken on S.Amdt. 1537 before a successful cloture vote on the substitute.

That cloture vote caused S.Amdt. 1537 to be ruled non-germane, and it fell from consideration.
A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the
proposed substitute to H.R. 6. The proposed tax package amendment included oil and natural gas
revenue offset provisions, as well as incentives for renewable energy and energy efficiency. The
proposed revenue offsets were similar to, but more extensive than, the offsets proposed in Title
XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture
motion to limit debate. (For more details, see CRS Report RL33578, Energy Tax Policy: History
and Current Issues.)

H.R. 3221 has two divisions. Division A contains the New Direction for Energy Independence,
National Security, and Consumer Protection Act, which has nine titles that represent the
integration of H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R. 2635,
H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2847, and a draft bill by the Committee on Energy and
Commerce. Division B, the Renewable Energy and Energy Conservation Tax Act of 2007,
contains the House-approved version of H.R. 2776, and adds four titles to H.R. 3221. A summary
of the bill is presented in CRS Report RL33831, Energy Efficiency and Renewable Energy ^th
Legislation in the 110 Congress. That report also contains descriptions of all the bills that
composed the House-passed version of H.R. 3221.

One challenge involves key differences between the provisions of the two bills. There are several
provisions where the two bills are very similar. One example is energy efficiency standards,
where the House and Senate provisions have more similarities than differences. However,
especially among the more controversial provisions, many either have major differences or the
provision appears only in one bill. One key challenge will be to resolve such differences.
A second challenge involves additional action that will be required to get a bill to conference
committee. Because the House and Senate have passed different measures, constitutionally-
required congressional procedures prevent the two bills (H.R. 3221 and H.R. 6) from going to
conference in their current form. Further action will be needed on at least one of the two bills in at

least one of the two chambers. For example, one option could be that the Senate takes up H.R.

3221, amends it however it wishes, and then pass the bill as the Senate version of H.R. 3221.

Then, a conference could be held to resolve any remaining differences between the two versions ¹
of H.R. 3221.
A third challenge involves opposition to the bills expressed by the Administration. In a June 12,

2007, Statement of Administration Policy on H.R. 6, the Administration expressed several points ²

of opposition to the Senate bill. Its primary concerns involved issues related to oil and natural
gas. The Administration stated that the bill “does nothing to increase domestic supplies of oil and
natural gas.” Moreover, it threatened to veto the bill if it retained a price gouging provision,
which it feels would lead to problematic gasoline price controls. Another veto threat was focused
on the proposal to subject foreign oil cartels to the jurisdiction of U.S. courts. Additional concerns
were identified. One concern focused on the explicit 35 mpg fuel economy target in the CAFE
provision and the proposal to set standards for medium- and heavy-duty trucks. For the RFS
provision, the Administration strongly urged expansion to include fossil-based alternative fuels.
Regarding loan guarantees, the Administration stated opposition to loosening of controls over
program size and “special” treatment that would allow guarantees for biofuels projects to be
increased to from 80% to cover up to 100% of project costs.
In an August 3, 2007, Statement of Administration Policy on H.R. 2776 and H.R. 3221, the ³
Administration expressed several points of opposition to the House bill. Its primary concerns
were focused on oil and natural gas. It stated that because the two bills “would lead to less
domestic oil and gas production, higher energy costs, and higher taxes, the President’s senior
advisors would recommend that he veto these bills.” Other concerns included the proposed repeal
of the manufacturing tax deduction for the oil and gas industry, the application of royalty
requirements for certain offshore oil and gas leases issued in 1998 and 1999, increased
authorization for clean renewable energy bonds, and expansion of the Davis-Bacon prevailing
wage requirements.

After the House completed action on H.R. 3221, informal bipartisan negotiations over the
omnibus energy bills began between the House and Senate. Key issues seem to include the RPS
provision (Title IX, Subtitle H) in the H.R. 3221, differences over proposals for increasing the
renewable fuels standard (RFS), and a proposal to offset costs by repealing certain oil and natural
gas subsidies. In November 2007, EIA issued a report on the impacts of the RPS and oil and gas ⁴
provisions in H.R. 3221. On December 1, 2007, the Ranking Member of the Senate Committee
on Energy and Natural Resources stated that the House Leadership’s intent to include an RPS led

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him to cease negotiations.⁵ Further, on December 3, 2007, the White House announced that it ⁶
may veto the negotiated bill, if it includes an RPS, oil tax increases, and certain other provisions.
On December 4, 2007, United Press International reported that, in a press conference, DOE
Secretary Bodman warned against the inclusion of “a narrow, one-size-fits-all renewable portfolio ⁷
standard,” and said “taxes should not be raised or tax breaks reversed for the oil and gas sector.”

This report compares the major provisions of the House-passed version of H.R. 3221 and the
Senate-passed version of H.R. 6. Table 1 shows a list of the major provisions that are reviewed in
this report. Some provisions are contained wholly under one title or subtitle. For example, the
RPS provision in the House bill is contained wholly under Subtitle H of Title IX. However, some
provisions are scattered throughout several titles or subtitles. For example, in the House bill, the
most extensive provision for loan guarantees is found in Title IX, Subtitle C, but additional
provisions for loan guarantees appear under Titles IV (Subtitle E), V, IX (Subtitle A) and IX
(Subtitle E). Similarly, Senate provisions for loan guarantees appear in both Title I (Subtitle B),
and Title II (Subtitle C).
Table 1. List of Provisions
^Provision^Category^Location
¹^{Renewable Fuel Standard}^regulation^{page 6}
²^{Corporate Average Fu}^{el Econom}^{y (CAFE)}^regulation^{page 7}
³^{Renewable E}^{nergy Portfolio Standard (RPS)}^regulation^{page 7}
⁴^{Royalties Under Offshore Oil an}^{d Gas Leases}^regulation^{page 8}
⁵^{Repeal of Oil and Natural Ga}^{s Tax In}^centives^{tax incentives}^{page 8}
⁶^{Renewable E}^{nergy Production Ta}^{x Credits}^{tax incentives}^{page 9}
⁷^{Transportation Tax I}^nce^ntives^{tax incentives}^{page 9}
⁸^Energ^{y Ef}^{ficiency Tax}^Ince^ntives^{tax incentives}^{page 1}⁰
⁹^Energ^{y Ef}^{ficiency - E}^quip^{ment Sta}^ndards^regulation^{page 1}⁰
¹⁰^{Loan Gua}^rantee^s^loans^{page 1}¹
¹¹^Energ^{y Ef}^{ficiency - Federal}^regulation^{page 1}²
¹²^Energ^{y Ef}^{ficiency - Congres}^sional^regulation^{page 1}²
¹³^Energ^{y Ef}^{ficiency - Vehicle Trans}^portation^{authorization}^{page 1}²
¹⁴^{Renewable Fuel I}^nfrast^ruct^ure^{authorization}^{page 1}³

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^Provision^Category^Location
¹⁵^Rail^{, Sea, and Air Transportation}^{authorization}^{page 1}³
¹⁶^Inter^{national Energ}^{y Cooperation}^treaties^{page 1}⁴
¹⁷^Inter^{national Climate Cooperatio}ⁿ^treaties^{page 1}⁵
¹⁸^{Carbon Storage}^{authorization}^{page 1}⁵
¹⁹^{Carbon Ne}^{utral Gove}^rnme^nt^{authorization}^{page 1}⁶
²⁰^Energ^{y Ef}^{ficiency - Buildings}^{authorization}^{page 1}⁶
²¹^Energ^{y Ef}^{ficiency - State and Loca}^l^{authorization}^{page 1}⁶
²²^Energ^{y Ef}^{ficiency - Small Business}^{authorization}^{page 1}⁷
²³^Green^Jobs^{authorization}^{page 1}⁷
²⁴^{Transmission/Smart Grid}^{authorization}^{page 1}⁷
²⁵^{Wind Impacts on Wildlife}^regulation^{page 1}⁷
²⁶^{Renewable E}^{nergy R&D}^{authorization}^{page 1}⁸
²⁷^{Hydrogen Award}^{authorization}^{page 1}⁸
²⁸^{Price Gouging}^regulation^{page 1}⁸
²⁹^Agriculture^Energ^y^{authorization}^{page 1}⁸
³⁰^ARPA-E^{authorization}^{page 1}⁹

Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6
^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Renewable Fuel Standard (R}^FS)
^{No provision.}^{Title I, Subtitle A.}^{This Subtitle would extend and}^{No House}^provision.

^{increase th}^{e re}^{newable f}^{uel stand}^{ard (RFS) set by P.L.}
^109-^{58. The RFS re}^{quires mi}^nimu^{m ann}^{ual levels of}
^renewable^{fuel in gasoline. The c}^urre^{nt standa}^{rd is 4.7}
^billi^{on gallons for 200}^{7. The modified standard would}
^{start at 8.5}^{billion gall}^{ons in 20}⁰⁸^{and rise to 3}⁶^billion
^{gallons in 202}^{2. Starting in 2}⁰¹^6,^{an increasing}^{portion of}
^{the re}^quireme^{nt would have}^{to b}^e^{met with advanc}^ed
^{biofuels, defined as cellulosic ethanol and other biofuels}
^{derived from feedstocks other t}^h^{an corn}^starch.
^{Renewable fuels}^{produced f}^rom^{new biorefineries wo}^uld
^{be re}^{quired to achieve at}^{least a}^20%^{reduction in life}
^{cycle green}^{house gas e}^{missions r}^{elative to l}^{ife cycle}
ⁱ^{ki/CRS-RL34135}^{emissions from gasoline. A voluntary labeling program}^{would be established for r}^enewa^{ble fuels, based on life}
^g/w^{cycle green}^{house gas e}^{missions. Fuel produced f}^rom
^s^.or^{biorefineries that displace more}^t^han^90%^{of the}^fossil
^le^ak^{fuels used in}^{a biofuel p}^{roduction facility would qualify}
^{for additional credits under the R}^{FS. (F}^{or more details,}
^://wiki^{see CRS Report RL33}⁹²^8,^{Ethanol and Biofuels:}
^h^ttp^Agricultu^{re, Infrastr}^{ucture, and Ma}^r^{ket Constraints Related to}^{Expanded Production}^.)

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^Corp^{orate Average Fuel Ec}^o^{nomy (C}^AFE)
^{No provision.}^{Title V woul}^{d establish a single CAFE standard for a}^{No House}^provision.
^{combined passe}^{nger ca}^{r and light}^truck^{fleet, beginning}
^{in model year (MY) 20}^{11. The e}^x^{isting standard is 27.5}
^{miles per gallon (mpg) for pass}^en^{ger cars a}^{nd 2}^{2.2 m}^pg
^{for light trucks in}^MY2⁰⁰^{7. H.R. 6 would set a CAFE}
^{target of 3}⁵^mpg^{for the}^combine^{d fleet by MY2}⁰²^{0. The}
^{CAFE standards du}^{ring eac}^{h of th}^{e interim years}
^(MY201^1-MY2⁰¹^{9) would be re}^q^{uired to be 4}^%^highe^r
^{than t}^{he p}^{revious model year, or}^{at “maximum}^feasible”
^{levels. Within 18 months}^after^en^{actment, the}
^Department^{of Trans}^{portation (DOT) would be}
^{required to initiate analysis for th}^{e pu}^{rpose of}
^{establishing a commercial mediu}^{m- and heavy-dut}^{y on-}
^{highway ve}^{hicle fuel efficiency im}^provement^program.
^Other^{provisions would req}^{uire t}^{hat a pe}^rcentage^of
^{automakers’ new}^{vehicles be alte}^{rnative fu}^el-capable
ⁱ^{ki/CRS-RL34135}^{starting in 2}⁰¹^{2, and t}^{hat CAFE fi}^{nes be}^{used to develop}
^g/w^{alternative fuel inf}^rastru^ctur^{e. (For additi}^onal
^s^.or^{information, see CRS Report RL3398}^2,^Corporate^{Average Fuel Economy (CAFE): A Comparison of Selected}
^le^ak^{Legislation in the 110}^th^Congress^{, and CRS Report}
^://wiki^RL334^13,^Auto^{mobile and Light Tru}^{ck Fuel Economy: The}^{CAFE Sta}^ndar^ds^.)
^h^ttp^{Federal Renewable Energy Portfolio Standa}^rd
^(RPS)
^{Title IX, Subtitle H, woul}^{d establi}^{sh an RPS administered}^{In Senate}^{floor action on its prop}^{osed substitute}^{No Senate provision.}

^{by DOE}^{for retail su}^{ppliers (electric utilities)}^{. For each}^(S.Amdt^{. 150}^{2) to H.R. 6, S.Amdt}^{. 153}^{7 to the}^su^bstitute
^{retail supplier that}^{sells more tha}^{n one billion kilowatt-}^{proposed adding an RPS with a ta}^{rget of reac}^{hing 1}^5%
^{hours (kw}^{h) per}^{year, the}^{RPS would set a minimum}^{by 2}⁰²^{0. After a}^succe^{ssful clotur}^{e motion on S.Amdt.}
^{electricity production req}^uireme^{nt from r}^enewa^ble¹⁵⁰^{2, S.Amdt. 153}^{7 was r}^{uled no}^n-germane.
^{resources. The}^{standard would st}^{art at 2.7}^{5% in}²⁰¹⁰^and
^then^{rise ann}^{ually until reac}^{hing a}^{peak of 1}^{5% in}²⁰²^0.
^{Electricity savings from e}^nergy^eff^{iciency measur}^{es would}
^{be allowed to compose a maximum of 2}^{5% of t}^he
^{standard in any}^{given yea}^{r. The e}^{nergy ef}^{ficiency s}^hare
^{would rise to a peak of 4%}^{in 2}⁰²^{0, of the 1}^{5% total. (For}
^{more details, seeCRS Report RL}³⁴¹^16,^R^{enewable Energy}
^{Portfolio Standard (RPS): Backg}^roun^{d and Debate Over a}
^{National Requirement}^.)

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Royalties Under Offs}^hore^{Oil and Gas Leases}
^{Title VII, Subtitle E, would require that th}^{e Secretary}^of^{No provision.}^{No Senate provision.}
^{the In}^{terior accept}^{a lessee’s req}^{uest to modify certain}
^{leases established in 1}⁹⁹⁸^and¹⁹^{99 without}^price
^thres^{holds (“covered leases”) to}^{set price t}^hres^holds.
^Lessees^{holding “covered leases” would not be eligible for}
^{new oil and gas leases in the}^Gulf^{of Mexico u}^{nless the}
^{covered leases are modified to include price th}^resholds
^{or the lessee would agree to}^pay^{a newly established}
^{“conservation of resou}^{rces f}^{ee.” The Subtitle would}
^{repeal royalty relief provisions es}^{tablished by t}^{he E}^nergy
^Pol^{icy Act of 20}^{05 (P.L. 10}^9-5^{8, §344}^{and §3}^{45). This}
^{Subtitle is nearly identical to Title}^{II of the}^House-pa^ssed
^{version of H.R. 6. The Congressi}^{onal Budget Office}
^{estimates that t}^{he p}^{roposed cha}ⁿ^{ges to the royalty}
^{system for oil and natu}^{ral gas cou}^{ld generate $}^{6.3 billion}
^{over 10}^years^{for the U.S. Treasu}^ry.
ⁱ^{ki/CRS-RL34135}^{Repeal of Oil and Natu}^{ral Ga}^{s Tax Incentives}
^g/w
^s^.or^{Title XIII, Subtitle A, proposes tax reve}^{nue of}^{fsets t}^hat^{No provisions.}^{No Senate provision.}
^le^ak^{would be obtained by}^{reducing s}^{ubsidies for oil and}^{natural gas}^production.^{However, in Senate floor action on its proposed}^{S.Amdt. 1704 had}^{more reve}^nue^{offsets tha}^{n Title XIII,}
^substitute^{(S.Amdt. 1502) to H.R. 6, S.Amdt. 1704 to t}^he^{Subtitle A of H.R. 3221. The}^{estimated dollar value of}
^://wiki^{Section 130}^{01 wo}^{uld repeal the}^I^{RS §199 domestic}^substitute^pro^{posed tax rev}^en^ue^{offsets that we}^re^{the reve}^nue^offset^{provisions in S.Amdt. 1704 wa}^{s more}
^h^ttp^manufa^cturing^{deduction for oil and gas compa}^nies^{starting in 2}⁰⁰^{8. (Note: In}²⁰^{07, t}^{his deduction would}^{similar to, but more exten}^{sive th}^{an, the offsets}^{proposed in Title XIII, Subtitle A of H.R. 3221.}^{than dou}^{ble that estimated for}^{H.R. 3221.}

^{amount to about}^6%^{of the inco}^{me from domestic}^{However, S.Amdt. 1704}^{failed by a vote of 57-3}^{6 on a}
^{production of oil, gas, or primary products.)}^{cloture motion to limit debate. (F}^{or more details, see}
^{Under Section 13}⁰⁰^{2, the geological and geophysical costs}^{CRS Report RL335}^78,^{Energy Tax Policy: History and}^Cur^{rent Issues}^{, by Salvatore Lazzar}^i.)
^{(G&G) of a major integrated oil company would be}
^{amortized (deducted proportionally) over a 7 year p}^eriod
^{instead of the c}^urre^{nt 5}^{years. (N}^{ote: A major integrated}
^{oil company is one with an ave}^ra^{ge world production of}
^{at least 50}^0,00^{0 ba}^{rrels pe}^{r day, with 20}^{05 g}^{ross receipt}^s
^{exceeding $}¹^{billion, and which h}^{as at least a 1}^{5% inter}^est
^{in refinery}^operations.)
^{Section 130}^{03 wo}^{uld restrict oil and gas compa}^{nies from}
^{claiming foreign tax credits b}^y^ch^{anging the}^{method used}
^{to calculate “Foreign Oil and Gas Extra}^{ction Income.”}
^{The Joint Committee on Taxation estimates t}^{his Title}

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{would increase reve}^{nue to t}^{he U.S. Treasury by a}^bout
^$11^{billion over 10 year}^s.
^{Title XIII, Subtitle B would clarify}^eligibi^{lity for the}^{No provision.}^{No Senate provision.}
^{renewable diesel tax c}^redit.
^{Title XIV}^{, Subtitle A, would cal}^{l for a carbon a}^{udit of the}^{No comparable}^{provisions in Sen}^{ate bill, nor in S.Amdt.}^{No Senate provisions.}
^{IRS tax code and for a com}^prehe^{nsive study of}^biofuels.¹⁷⁰^{4, which}^{failed to be added to H.R. 6 on the Senate}
^{Subtitle B would require t}^{hat, for a capital grant}^program^floor.
^{to rehabilitate freight railroad tracks, all laborers and}
^mechanics^be^{paid at the “p}^{revailing wage” rate.}
^Tax^{Incentives for Renewabl}^{e Energy Pro}^duction
^{Title XI would extend the re}^new^{able electricity}^{No provisions in H.R. 6.}^{No Senate provisions, but:}
^{production tax c}^{redit (PTC) for 4 years a}^{nd ex}^{pand it to}^{However, S.Amdt. 1704 (Part}^{I) would have exte}^nded^{S.Amdt. 1704 p}^{roposed a 1-yea}^r^{longer PTC extension}
^{include ocean the}^{rmal and h}^{ydrokinetic (wave, tide, and}^{the PTC for 5 yea}^{rs a}^{nd ex}^pande^{d it to include ocean}^{than t}^{he Hous}^{e bill.}
^curre^{nt) ene}^{rgy. Also, it would e}^{xtend t}^{he 3}^0%^busine^ss^{thermal and}^{hydrokinetic (wave, tide, and current)}
^{energy inv}^estment^{tax c}^{redit (ITC) for solar and fuel cell}^{energy. Also, it would have exten}^{ded the 3}^{0% b}^usines^s^{S.Amdt. 1704 p}^{roposed $}^{1.6 billi}^{on more for CREBs,}
ⁱ^{ki/CRS-RL34135}^equipme^{nt for}^{8 yea}^{rs, authorize}^$2^billi^{on of clean}^{energy ta}^{x credit for solar a}^{nd fu}^{el cell equipment}^{for 8}^{and it would have ex}^{panded t}^he^busines^{s ITC to}
^g/w^{renewable e}^nergy^{bonds (CREBs)}^{, and remove the}^{cap on}^{years and}^{repealed the}^pu^{blic utility exclusion. It would}^utilities.
^s^.or^{the investme}^{nt ta}^{x credit for re}^{sidential solar and fuel cell}^equipme^nt.^{have aut}^{horized $3.6}^billi^{on of CREBs, and raised the}^{H.R. 3221 wo}^{uld remove the}^cap^{on the r}^{esidential ITC.}
^le^ak^{cap on t}^{he tax}^{credit for resident}^{ial solar and fuel cell}
^equipme^{nt. A new}^{credit would h}^{ave bee}^{n created for}^{S.Amdt. 1704 would have}^{raised the cap}^{on the}^{residential ITC.}
^://wiki^{residential wind equipme}^{nt. Two incentives for electric}
^h^ttp^{transmission would have}^been^es^tablished.^{S.Amdt. 1704 would have}^create^{d a credit for}
^{S.Amdt. 1704 (Part V) would hav}^{e extended t}^{he ne}^w^{residential wind equipme}^nt.
^{energy-efficient}^{homes c}^{redit for 3 years.}^{S.Amdt. 1704 (Part V) would hav}^{e extended t}^{he ne}^w
^{homes credit.}
^{Tax Incentives for Ener}^{gy Ef}^f^{iciency in}
^Transp^ortation
^{Title XII, Subtitle A, woul}^{d set a $4,00}^{0 cr}^{edit for plug-in}^{No provisions.}^{No Senate provisions.}
^{hybrid ve}^{hicles, establish a 5}⁰^cen^{t per gallon production}^{S.Amdt. 1704 would have}^create^{d a credit for plug-in}^{S.Amdt. 1704 had a}^stronger^cre^{dit for plug-in hyb}^rids.
^{tax credit for cellulosic ethanol f}^{uel, extend th}^{e biodiesel}^{hybrids, cap}^{ped at $}^7,50^{0 to $}^15,^{000, de}^{pending on}
^{production tax c}^{redit for two ye}^{ars, increase t}^he^{vehicle weight. The credit for alternative-fueled vehicles}^{H.R. 3221}^{provides some ince}^{ntives that we}^{re not in}
^{alternative ref}^{ueling stations tax}^{credit, create a fringe}^{would have bee}^{n exte}^{nded for}²^{years. An e}^xclusion^{S.Amdt. 1704.}

^{benefit for}^{bicycle commute}^{rs, an}^{d modify depreciation}^{from heavy}^truc^{k tax wo}^{uld have}^been^{established for}
^{and exp}^ensing^{rules to close a loophole for gas guzzlers}^idl^{ing reduction u}^{nits and ce}^rtain^{truck ins}^ulation
^{and make ince}^{ntives available for}^{fuel efficient ve}^hicles.^measures.

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Tax Incentives for Other}^{Energy Ef}^ficiency
^Measures
^{Title XII, Subtitle B,}^{Section 1201}^{1, would create an}^{No provisions.}^{No Senate provisions.}
^{energy con}^{servation ta}^{x credit b}^{ond for state and local}^{S.Amdt. 1704, Part V, would have}^{extended t}^he^{H.R. 3221 wo}^{uld establish two n}^{ew tax credit bo}^nd
^government^{s to reduce}^energ^{y u}^{se in p}^{ublic buildings,}^{commercial building deduction for 5 yea}^{rs, and ext}^ended^{provisions for state and local pro}^grams.
^{promote renewa}^{bles in r}^{ural are}^{as, support}^{R&D, mass}^{and expa}^{nded the}^{home ap}^plianc^{e credit.}
^{transit facilities and vehicles, and technology}^{S.Amdt. 1704 would have}^exte^{nded two home tax}
^{demonstrations. Total (national}^{) bond aut}^{hority would be}^{Also, Part V would have extende}^{d the new}^{home credit}^{credits that are}^{not included in H}^{.R. 3221. Also, it}
^{limited t}^o^{$3.6 billion.}^{for 3 year}^{s and t}^{he e}^{xisting home}^{efficiency ret}^rofit^{would have established a}^{new co}^{mmercial CHP credit.}
^{Section 120}^{12 wo}^{uld create an e}^{nergy ef}^ficiency^{credit for 2 yea}^{rs. A credit would have}^{been c}^{reated for}^{commercial installati}^{on of certain}^{combined heat a}^nd
^{assistance tax}^{credit bond for}^sta^{tes to provide loans and}^{power (CHP) equip}^ment.
^{grants for}^{home improvem}^{ents a}^{nd residential equipme}^nt.
^{Total bond authority would be limited to $2.4 billion. The}^{Part I would have e}^xpa^{nded the}⁷^{-year depreciation}
^{bond could sup}^port^Energ^{y Star}^equipme^{nt, ren}^ewable^{period to include energy ma}^nage^{ment devices.}
^{energy e}^quip^{ment, and ce}^{rtain ta}^{rgeted reductions in}
^energy^{use. At least 2}^{0% of t}^he^p^{roject proceeds from}
ⁱ^{ki/CRS-RL34135}^{each bond iss}^{ue m}^{ust b}^e^ap^{plied to low-}^income^{residential purposes.}
^g/w
^s^.or^{Also, Subtitle B woul}^{d provide a 5-year ex}^{tension of t}^he
^le^ak^{tax deduction for comme}^{rcial bui}^{ldings, an extension and}^modificati^{on of the ap}^{pliance cre}^{dit, and the}
^://wiki^{establishment of a}^{five-year dep}^r^{eciation period for smart}^{electric meters.}
^h^ttp^{Energy E}^{fficiency -}^Equipmen^{t Standards}
^{Title IX, Subtitle A}^,^{Part 1, would set, by stat}^{ute, new}^{Title II, Subtitle B, w}^{ould set, by statute, new sta}^ndards^{Both bills would leg}^{islate identica}^l^{standards for}
^{efficiency sta}^{ndards for residentia}^{l clothes washers,}^{for residential boilers, electric motors, and some home}^{residential clothes washers, dish}^{washers, deh}^umidifiers,
^{dishwashers, deh}^{umidifiers, refrigerators, refrigerator-}^{appliances. DOE would b}^e^direct^{ed to set standards b}^y^{electric motors, and residential boilers. The House bill}
^{freezers, freezer}^{s, electric motors, and residential boilers.}^{rulemaking for f}^u^r^{nace fa}^{ns. Also, DOE would be}^{would also leg}^{islate standards for refrigerators, freeze}^rs,
^{DOE would be allowed to establi}^{sh regional variations in}^{allowed t}^o^{set standards for m}^{ultiple components a}^nd^{and refrigerator-fr}^{eezers. The Se}^{nate bill would direct}
^{standards for}^{heating and air co}ⁿ^{ditioning equipment.}^{regional standards for heating}^an^{d cool}^{ing equipme}^nt.^{DOE to set sta}^{ndards by}^{rule for}^{refrigerators, freeze}^rs,
^{DOE would be re}^{quired to comp}^{lete a rulemaking}^{Further, t}^{his Subtitle would provide incentives for t}^he^{and refrigerator-fr}^{eezers. Both bi}^{lls would d}^{irect DOE}
^process^{for fur}^{nace fans by 20}^13.^Federal^agencies^would^manufa^cture^{of high-efficienc}^{y co}^nsume^{r p}^roducts.^{to set standards b}^y^r^{ule for fu}^rna^{ce fans. The}^House^bill
^{be directed to pu}^rchas^{e devices t}^{hat limit standby power}^Other^{provisions would expedite}^{rulemakings, clarify}^{would legislate certain efficiency measures}^{for walk-in}
^{use. DOE would be directed to i}^{ssue a final r}^{ule that}^sets^{limits to federal preemption of st}^{ate standards, and}^{coolers and freezers.}
^{efficiency sta}^{ndards for batt}^{ery c}^{hargers. Certain}^energ^y^require^En^ergy^{Guide labels for s}^{everal types of}^{Both bills would leg}^{islate identica}^l^{standards for}
^{efficiency meas}^ures^{for walk-in c}^{oolers and walk-in}^consumer^{electronic p}^{roducts. Also, DOE would be}^incandescent^{reflector lamps. Th}^{e House}^{bill would als}^o
^{freezers would be}^{set b}^y^legislati^{on. Also, several}^{directed to establish a program}^f^{or the us}^{e of new}^{legislate standards for certain me}^{tal halide lamps.}

^{procedural c}^{hanges wo}^{uld be ma}^{de to expedite the DO}^E^{technologies to improve energy}^e^{fficiency in mate}^rials
^{rulemaking p}^rocess.^manufa^cturing^{and e}^nergy-inten^{sive industries.}

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Part 2 would set a ma}^{ndatory tar}^{get for lighting efficiency,}^{Subtitle A would require all feder}^{al lighting to be Energ}^y
^{set a standard for i}^ncandesce^{nt r}^{eflector lamps, and}^{Star rated by}²⁰^{10, e}^xpanding^effi^{ciency standards}^for
^require^{federal agencies to re}^plac^{e incandesce}^{nt lights}^incandescent^{reflector lamps, c}^r^e^{ating the “Bright}
^{with more efficient one}^{s. Ene}^rgy^{efficiency sta}^ndards^{Tomorrow” lighting prizes for solid state (LED) lighting}
^{would be set by}^{legislation for metal halide lamp fixtures}^{developments, and establishing a}^{“Sense of the Se}^nate”
^{designed to be operated with lam}^{ps rated}^between¹⁵⁰^{to pass mandatory e}^nergy^efficien^{cy per}^formance^targets
^{watts and 5}⁰⁰^watts.^{for lighting products.}
^{Loan Gua}^{rantees for}^Ener^{gy Faciliti}^es
^{Title IX, Subtitle C}^,^{would amend EPACT05 Title XVII to}^{Title I (Sec. 124) would amend E}^{PACT05 Title XVII to}^{The Senate bill specifies that a}ⁿⁿ^{ual limits in}
^{specify tha}^{t loan guara}^{ntees m}^ust^{be large e}^{nough to}^{specify tha}^{t u}^p^{to 1}^00%^{of a p}^{roject’s debt may}^be^approp^{riations acts would not ap}^{ply to loan guarantee}^s
^ensu^{re fina}^{ncing for a}^{project (up}^{to 80% of}^project^{guaranteed a}^{nd that t}^{he loan g}^u^a^rantee^{program is not}^{using non-a}^ppro^{priated fu}^{nds (usi}^{ng fu}^{nds p}^{rovided by}
^{costs), that DOE may}^{not establish reg}^{ulations limiting}^{subject to an}^{nual limits establishe}^{d by ap}^propriations^{project sponsors, as a}^{uthorized b}^y^{EPACT05). This}
^guarantee^{s to less tha}^{n 1}⁰⁰^%^{of p}^{roject debt, and that}^{acts whe}^{n non-a}^ppro^{priated fu}^{nds are us}^{ed. Loan}^{provision is considered importan}^{t for nu}^{clear power}
^{workers on s}^uch^{projects m}^{ust b}^e^{paid prevailing wages}^guarantee^aut^{hority would be ext}^{ended to renewa}^ble^{plants, which te}^{nd to be}^{far more}^expe^{nsive tha}^{n othe}^r
^{under t}^{he Davis-Bacon Act. In ad}^{dition, appropriations}^{fuel facilities (Sec. 124) and prod}^{uction facilities for fuel}^{advanced energ}^{y p}^{rojects. The H}^{ouse bill would help}
^{bills could not exclude any categ}^{ory of projects otherwise}^{efficient vehicles or}^{parts (Sec. 24}^2).^nuclear^{power b}^y^p^{rohibiting app}^{ropriations acts from}
ⁱ^{ki/CRS-RL34135}^{eligible for lo}^{an guarant}^{ees u}^nder^{EPACT05. New loan}^guarantee^aut^{hority would be est}^{ablished for biofuel}^{excluding any}^{project categories (}^{the House-}^passed^Energ^{y and Water Dev}^elopment^Approp^{riations Bill for}
^g/w^{plants (Sec. 50}^{03), ru}^{ral renewa}^{ble energy}^{systems (Sec.}^FY2008^{(H.R. 264}^{1) excludes}ⁿ^u^c^{lear plants). The}
^s^.or⁵⁰⁰^{6), vessels for s}^{hort sea t}^rans^{portation (Sec. 840}^1),^{House bill establishes n}^{ew loan g}^uarantee^aut^{hority for}
^le^ak^{advanced batter}^{y man}^ufact^uring^f^acilit^{ies (Sec. 9401), and}^{a wider variety of projects t}^{han t}^{he Senate}^bill.

^green^{building retrofits (Sec. 905}^2).
^://wiki
^h^ttp

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Energy E}^{fficiency - Federal}
^{Title VI,}^{Subtitle B, would require federal agencies to}^{Title II, Subtitle E, would require}^{federal and state fleets}^{Both bills would set a goal to red}^{uce fossil fuel us}^{e in}
^purc^{hase “low car}^{bon” ve}^{hicles and to procu}^{re ene}^rgy-^{to reduce oil use 3}^0%^{by 2}⁰¹^{6. The re}^{newable e}^nergy^{federal vehicle fleets, but}^by^using^{different a}^pproac^hes.
^{efficient product}^{s. DOE would b}^e^{directed to revise}^{share of f}^{ederal energy}^p^urc^hases^{would increase to}^{The Senate bill would also set a goal to reduce use}^by
^energy^performa^{nce sta}^{ndards fo}^{r federal b}^{uildings to}^15%^by²⁰^{15. Federal agencies w}^{ould have per}^mane^nt^{state fleets.}
^{reduce oil use. Covered buildings would have to reduce}^{authority to use}^En^{ergy-Saving Pe}^{rformance Co}^ntracts^{Both bills set goals for reducing f}^{ossil fuel use in federal}
^{the sha}^{re of fossil fuel u}^{se by}⁵⁵^%^{in 2}⁰¹^{0, reducing}^{(ESPCs). Federal build}^{ings would be re}^{quired to redu}^ce^{buildings. The House bill would drive this reduction}
^{steadily to 100% (zero emissions) by 2}⁰³^{0. Subtitle C}^{energy use 30%}^{by 20}^15.^{Federal buildings}^would^be^{with a DOE r}^ulemaking.
^{would create a telework (work fr}^{om home) policy at}^{required to red}^{uce fossil energ}^y^{use b}^y⁵^0%.
^{federal agencies. Alterative fuels}^{could not be p}^{rocured if}^{Title IV,}^{Subtitle A, would d}^{irect GSA to accelerate}^{The Senate bill would set a broad}^{er req}^uireme^{nt for}
^greenho^{use gas (G}^{HG) emissions}^{exceed those}^for^{federal agency}^{use of ef}^{ficient lights. Subtitle B would}^{light bulbs.}
^{conventional petroleum}^fuels.^{direct GSA to install a solar photovoltaic system at DOE}
^{Title VIII, Subtitle F, w}^{ould prohibit the G}^{eneral Services}^headqua^rters.
^{Administration (GSA) from pur}^c^{hasing inca}^{ndescent lights}^{Title IV,}^{Subtitle C, Secti}^{on 43}^{2, would establish virtually}
^{for Coast Guard}^{buildings. Also, i}^t^{would direct GSA to}^{identical provisions for federal green b}^uildings.
^{install a solar photovoltaic syste}^{m at DOE}^headqua^rters.
ⁱ^{ki/CRS-RL34135}^{Title IX, Sect}^{ion 904}^{2, would direct GSA to establish a}ⁿ^{Section 452 wo}^{uld set identical procureme}^nt^requirem^ents.
^g/w^{Office of Federal High-Performa}ⁿ^{ce Gree}^{n Buildings that}
^s^.or^{would identify standards, practice}^{s, and incentives for}
^le^ak^{federal agencies. Would include agency rete}^{ntion of cost}^savings.
^://wiki^{Section 904}^{6 would direct the}^Of^{fice of Federal}
^h^ttp^Procurement^{Policy to require th}^{at acquisition,}^{construction, and major re}^{novations of buildings employ}
^{green design. I}ⁿ^{leasing, prefe}^ren^{ce would be given to}
^{energy-efficient buildings.}
^{Energy E}^{fficiency -}^Con^gressional
^{Title VIII, Subtitle F, Part 3, woul}^{d direct the Arc}^{hitect of}^{No provision.}^{No Senate provision.}
^{the Capitol to operate the Ca}^{pitol Power Plant in an}
^{energy-efficient}^{manor, include e}^{nergy ef}^{ficiency meas}^ures
^{in the Capitol Complex Maste}^{r Plan, and encou}^{rage th}^e
^{use of E}⁸⁵^{fuel a}^{nd solar photovoltaic equipment.}
^{Energy E}^{fficiency - Vehicle T}^ransp^ortation
^{Title VIII, Subtitle B, P}^{art 2, provides sup}^{port for f}^ederal-^{Title II, Subtitle C, woul}^{d promote high-efficiency}^{The bills have similar aims, but dif}^{fer in foc}^{us and mea}^ns.
^{aid highways. The federal sha}^{re f}^{or congestion mitigation}^{vehicles, advanced batteries, and}^{energy storage. DO}^E^{Both bills would establish grant p}^{rograms. The House}
^{and air quality (CMAQ)}^projects^{would be increased}^up^{would be authorized to fu}^{nd an}^{R&D program on light-}^{bill would provide l}^{oan guarantee}^{s and gran}^{ts to}
^{to 100}^{% of p}^{roject or program c}^ost.^{weight materials. A loan guarante}^{e program would be}^sup^{port advanced te}^ch^{nology wo}^{rk and h}^{ybrid ve}^hicle

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Title IX, Subtitle E would establis}^{h a loan guara}^ntee^{created for facilities that man}^ufac^{ture f}^{uel-efficient}^{vehicles. Funding awards for}^{qualified investments would}^purc^{hases. The Se}^{nate bill would rely more on R&D and}^{less on loan guarant}^{ees. The Sena}^{te bill has a broader}
^{program for adva}^{nced batte}^{ry de}^{velopment, grant}^{be aut}^{horized to refur}^{bish ma}^nuf^{acturing fa}^{cilities that}^{scope, including loan guaran}^{tees f}^{or constructi}^{ng or}
^{programs for}^{plug-in h}^{ybrid ve}^{hicles, incentives for}^{produce advan}^{ced tech}^{nology vehicles. A 10-year R&D}^{retrofitting facilities that manufa}^c^{ture f}^{uel-efficient}
^purc^hasing^{heavy d}^{uty h}^{ybrids for}^{fleets, and credits for}^{program would be a}^{uthorized to sup}^{port U.S.}^vehicles.
^{various electric vehicles.}^{competitiveness in global energ}^y^{storage markets, and a}
^{five-year R&D program would be}^{authorized for electric}
^{drive technologies. DOE would be directed to establish}
^{a competitive grant}^{program for}^{state, regional, and local}
^government^{entities to demonstr}^{ate electric drive}
^{vehicles. DOE would also be req}^{uired to establish a}
^{program to deploy tech}^{nologies that would achieve}
^{near-term oil savings in t}^{he tra}^ns^{portation sector.}
^{Renewable Fuel Supply and I}^nfrastru^cture
^{Title V (}^{§5003) would p}^{rovide lo}^{an guara}^ntees^{for u}^p^to^{Title I (§124) would provide loan guarantee}^{s for}^{up to}^{The House}^{bill would authorize funding for g}^{rants to}
^{90% (}^$²^{50 million in principal) of project cost for}¹⁰⁰^{% ($}²⁵^{0 million in principal) of project cost for}^sup^{port cellulosic ethanol produc}^{tion, but the Se}^nate
^{biorefineries and}^{biofuel producti}^{on plants.}^{advanced biofuel (new te}^ch^nolog^{y) pilot plants.}^{bill would not.}
ⁱ^{ki/CRS-RL34135}
^g/w^{Title IX (§9304) would direct DOE to study t}^{he f}^easibility^{of constructing}^{dedicated ethanol pipelines.}^{Title I (§143) would direct DOE t}^o^{study the}^feasibility^{of constructing}^{dedicated ethanol pipelines.}^{The Senate bill would authorize f}^{unding for g}^{rants to}^{states with low ethanol producti}^{on rates, b}^{ut the}^House
^s^.or^{bill would not. The Senate bill wo}^{uld create a f}^uel
^le^ak^{Title IV (}^{§9301) wo}^{uld authorize funding for}^{DOE to}^{Title I (§121) would authorize fu}ⁿ^{ding for DOE to make}^{labeling requireme}^{nt, and t}^{he Ho}^{use bill would not.}
^{make grants}^{for re}^{newable f}^uelin^{g infrastr}^uctu^re.^{grants for}^renewa^{ble fu}^{eling infra}^struct^{ure a}^{nd corridors}
^://wiki^Additi^{onal provisions (§4403, Title IX-D) would support}^{other aspe}^{cts of infra}^stru^cture^development.^{in 10 geogra}^{phically-dispersed ar}^eas.
^h^ttp^Other^{provisions would authorize funding}^{for R&D,}
^{Title IX (§9308) would authorize}^{DOE fu}^{nding s}^upport^{bioenergy resea}^rch^cente^{rs (1}^{1), grants to states}^with
^{for grants to diversify}^feedstocks^{and locations for}^{low ethanol production rates, biomass tran}^{sportation, a}
^{cellulosic ethanol production facilities.}^{fuel labeling req}^{uirement, a}^{nd a b}^iod^{iesel fuel quality}
^Other^{provisions would authorize funding}^{for R&D,}^standard.
^{bioenergy resea}^rch^cente^{rs (5), a}^{nd a biodiesel fuel quality}
^standard.
^{Rail, Sea, and Air Trans}^porta^tion
^{Title VIII, Subtitle B, w}^{ould direct}^{DOT to establish grants}^{No provisions.}^{No Senate provisions.}

^{that can}^help^{rail carriers b}^uy^hyb^{rid locom}^{otives and}
^{grants t}^{hat can}^{improve railroad track. Subtitle D would}
^{create a s}^{hort sea maritime tra}^ns^{portation program.}
^{Subtitle E would establish a gra}^nt^{program to red}^uce
^{airport noise, air pollution, and greenho}^{use gas emissions.}

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{International Energy C}^o^o^peration
^{Title IX, Subtitle D}^{, Part 2, would}^{establish a gra}^nt^{Title VII would express th}^{e sen}^se^{of Congress on}^{The House}^{provision only addresses energ}^y
^{program a}^{nd advisory board for}^U.S.^{-Israel energy}^{international energy}^{cooperation, empha}^{sizing increased}^{cooperation with Israel.}

^{cooperation. The provisions of th}^{is Subtitle are identical}^{use of s}^{ustainable e}^{nergy so}^urces^{. To support this, the}
^{to those of H.R. 323}^8.^Department^{of State would be e}^{ncouraged to esta}^blish
^{(1) strategic ene}^{rgy pa}^rtner^ships^{with the gover}^nment^s
^{of major energy}^producers^{and c}^{onsumers, a}^{nd other}
^government^{s; (2) a pet}^{roleum cri}^{sis response}
^{mechanism wit}^{h China a}^{nd India;}^{and (3) a Wester}ⁿ
^Hemisphe^{re ene}^{rgy c}^{risis respon}^{se mecha}^{nism, a}
^{ministerial Hemisphere}^Ene^{rgy C}^{ooperation Forum, and}
^{a Hemisphe}^re^Energ^{y Ind}^ustry^G^{roup. Also, the bill}
^{would establish a “Hemisp}^here^E^{nergy Cooperation}
^{Forum,” that would be e}^ncourag^{ed to implement}
^{initiatives on energy su}^{stainability and development.}
^{Section 710}^{proposes t}^{he “}^{No O}^{il Producing and}
ⁱ^{ki/CRS-RL34135}^Exporting^{Cartels (NOPEC) Act,}^{which would make it}^illega^{l for any foreign state or g}^{roup of state}^{s to limit}
^g/w^{production of oil and natural gas}^{to influence t}^{he p}^rice
^s^.or^{of petroleum p}^{roducts in t}^{he Uni}^{ted States. It would}
^le^ak^{deny the}^{sovereign immu}^{nity of a}^{ny state in}^violati^{on of}
^{the p}^{rohibition, and would all}^{ow the U.S. Attorney}
^://wiki^{General to b}^{ring action in a}^{ny district court u}^nder
^h^ttp^{antitrust laws.}

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{International Climate Cooperation on}^{Climate Change}
^{Title II, Subtitle A, states that it would be the}^{policy of the}^{No similar provision.}^{No Senate provision.}
^{United States to take a more active and const}^{ructive role}
^{in international climate change}^ne^gotiati^{ons, specifying}
^futu^{re meetings of}^{the Con}^feren^c^{es of the Parties to th}^e
^{United Nations Framework Con}^{vention on Climate}
^{Change. Among t}^{he actions s}^{pecified, the United States}
^{would seek mitigation commitme}^{nts from all major}
^greenho^{use-gas (GH}^{G) emitting}^{nations, including China,}
^{India, Brazil}^{, and other major developing nations. An}
^{Office on Global Climate Change}^{would be established}
^{within the Depa}^rtment^{of State, headed by a}ⁿ
^{Ambassador-at-Large who would}^{advance U.S. goals}
^concerning^reducing^{emissions of GHG}^{s and se}^{rve as a}
^{principal adviser to the P}^resident^{and Secretary of State}
^{on climate change}^policy.
ⁱ^{ki/CRS-RL34135}^Carbo^{n Storage}
^g/w^{Title IV,}^{Subtitle F, would expand the DOE}^program^for^{Title III of H.R. 6 is similar to T}^itl^{e IV, Subtitle F, and}^{The Senate bill does not include}^{an NAS review of t}^he
^s^.or^{carbon ca}^ptu^{re to include R&D f}^{or carbon storage}^and^{Title VII, Subtitle D}^,^{of H.R. 3221}^{. The DOE p}^rogram^{DOE progra}^{ms, nor esta}^{blish a u}^{niversity-based gra}^nt
^le^ak^{demonstration. DOE would conduct 7 i}^{nitial large-vo}^lume^sequest^{ration tests, pr}^efera^{bly usi}^{ng car}^{bon dioxide}^{would be expa}^{nded to include ca}^{rbon storage a}^nd^{carbon ca}^ptu^{re demonstration}^pr^{ojects. Also}^{, a}^{program for geological sequestra}^{tion science. Also, the}^{Senate bill does not require t}^hat^{EPA assess impa}^{cts of}
^://wiki^(CO²^{) from large industrial or electricity-generating}^{sources, and would conduct}^{at least 3 large-scale car}^bon^Department^{of the}^Interior^progr^{am would be}^{established to assess t}^{he national}^{carbon dioxide (CO}²⁾^CO²^captu^{re and}^seq^{uestration o}ⁿ^p^{ublic health a}^nd^{safety and t}^{he e}^{nvironment. Title IV of the Hou}^{se bill}
^h^ttp^captur^{e demonstration test}^{s fro}^{m industrial sources of}^{storage capacity.}^{authorizes a highe}^{r level of app}^{ropriations for progra}^ms
^CO²^{. Beginning in 2}⁰¹^{1, the}^{National Academy of}^{than t}^{he Senate}^bill.
^{Sciences (NAS) would review the}^large-scale^{(For more information on this topic seeCRS Report}
^sequest^{ration and ca}^ptur^{e progra}^{ms. EPA would conduct}^RL338^01,^{Carbon Capture and Seq}^{uestration (CCS)}^{, by}
^{a researc}^{h p}^{rogram to assess}^pot^{ential impacts of CO}²^{Peter Folger.)}

^{storage on the e}^nvironme^{nt, pu}^bl^{ic health and saf}^ety
^{associated with capture}^{and se}^qu^{estration. A grant}
^{program for g}^{raduate degree}^{s in}^geolog^{ical sequestration}
^{science would be esta}^blished.
^{Title VII, Subtitle D}^,^{would establi}^{sh a p}^{rogram in t}^he
^Department^{of the}^{Interior (DOI}^{) to be conducted}^{by th}^e
^{U.S. Geol}^ogica^{l Survey that woul}^{d develop a methodology}
^{for, and conduct a}ⁿ^assess^{ment o}^{f, the CO}²^storage
^{capacity of the U}^{nited States.}

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^Carbo^{n Neutral Governmen}^t
^{Title VI,}^{Subtitle A, would require each fede}^{ral agency to}^{No provision.}^{No Senate provision.}
^{inventory its gree}^nhou^{se gas emi}^{ssions ann}^{ually. EPA}
^{would set collective annual emission reduction targets,}
^{with a goal of zero net ann}^{ual em}^{issions (carbon-}
^{neutrality) by}²⁰^{50. Federal agen}^{cies would be allowed to}
^purc^hase^{qualified offsets and}^ren^{ewable energy}
^{certificates in open}^{market t}^ransa^{ctions. The maximum}
^{agency f}^{unding for}^{this Su}^{btitle would be 0.01}^{% of}
^{discretionary fu}^{nds in FY20}^{09 a}ⁿ^d^{FY2010. This s}^ubtitle
^{would not preem}^{pt state actions.}
^{Energy E}^{fficiency - Buildings}
^{Title IX, Subtitle A}^,^{Part 3, would encourage}^stronger^{Title II, Subtitle E, would d}^{irect the Depart}^{ment of}^{The House}^{bill provision for building codes covers all}
^{state building codes. Part 4, Section 90}^{43, would create}^{Housing and Ur}^ban^Development^{(HUD) to update}^{building sectors; the Senat}^{e bill is focused on}^pu^blic
^{an Office of Comme}^{rcial High Performance}^Greeⁿ^{energy e}^{fficiency sta}^{ndards for all pu}^{blic and assisted}^{housing and}^schools.
^{Buildings at DOE. Section 904}⁴^{would establish a zero-}^housing.^{The House}^{bill has provisions for}^{loan guarantee}^{s and a}
ⁱ^{ki/CRS-RL34135}^{energy comme}^{rcial buildings initiative. A national goal}^{Title IV Subtitle C, Part 2, would}^{create a gree}^{n sc}^hools^{revolving loan program.}
^g/w^{would be set to achieve zero-net}^{-energy u}^{se for}^new^program.
^s^.or^{commercial buildings built after}²^{025. F}^urthe^{r, a goal}
^le^ak^{would be set to retrofit all pre-2}⁰²⁵^b^{uildings to zero-}^net-energy^{use by 20}^50.^{Certain green building}
^://wiki^{renovations would be eligible for loan guarantees}^u^nder^§170^{3 of EPACT. Part 6 would cr}^{eate a federal revolving}
^h^ttp^{fund t}^{hat would make loans for c}^{ombined heat a}^{nd power}
^{projects at p}^{ublic institutions.}
^{Energy E}^{fficiency - State and}^Local
^{Title IX, Subtitle A}^,^{Part 3, Sectio}^{n 9}⁰³^{4, would increase}^{Title II, Subtitle F,}^{Section 271, w}^{ould authorize $7}^{The Senate bill would authorize n}^{early double the}
^{the fu}^{nding aut}^{horization for the}^{DOE Weatherization}^billi^{on over 5 year}^{s for t}^{he DOE}^{Weatherization}^{amount of Hou}^{se-recommended}^{Weatherization}
^{program, providing $}^3.75^billion^{over 5 year}^s.^{program a}^{nd reaut}^{horize the Stat}^{e Ene}^{rgy p}^rogram.^funding.
^{Part 9 would direct the De}^partm^{ent of E}^{nergy (DO}^{E) to}^{Section 273 wo}^{uld require}^state^{utility regulatory}^{The House}^{bill would not direct state regulatory}
^{establish an e}^nergy^efficiency^{block grant}^{program for}^{commissions to consider federal standards to promote}^{agencies to consider promoting e}^{nergy ef}^ficiency.
^{state and local governments. The}^{program would su}^pport^{energy e}^fficiency.^{The eligibil}^{ity criteria for the ene}^{rgy efficiency}^block
^{the development of e}^nerg^{y efficie}^{ncy goals and strategies,}^{Section 275 wo}^{uld create a n}^{early identical energy}^{grant p}^{rogram differ somew}^hat^b^{etween th}^{e two bills.}
^{public outrea}^{ch, and impleme}^ntat^ion.^{efficiency block gra}^{nt p}^{rogram at}^DOE.^{The Senate would provide a high}^{er shar}^{e of fu}^{nding for}
^{states. The House wo}^{uld authorize “such}^{sums a}^s
^{needed” and the}^{Senate would au}^{thorize $10}^billion
^{over 5 year}^s.

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Energy E}^{fficiency - Small Bus}^iness
^{Title III would establish loans, grants, and debe}^ntu^{res to}^{No provision.}^{No Senate provision.}
^{help small busi}^{nesses develop, inv}^{est in, and p}^urc^hase
^{energy e}^{fficient b}^{uildings, fixtures}^{, equipme}^{nt, and}
^technology.
^{Green Jobs}
^{Title I would authorize up to $1}²⁵^{million in funding to}^{Title II, Subtitle F,}^{Section 277 w}^{ould authorize up to}^{The House would aut}^{horize $2}⁵^mill^{ion more than t}^he
^{establish national and state job tr}^{aining programs,}^$10^{0 million to establish a nearly}^{identical program.}^{Senate. Also, the House provides}^{for a “Pathways}^Out
^{administered by the}^{U.S. Department of La}^{bor, to help}^{of Poverty Demonstration Progr}^{am” that is not in t}^he
^{address job shortages t}^{hat are im}^{pairing growth in g}^reen^{Senate proposal .}
^{industries, suc}^{h as e}^{nergy e}^fficien^{t buildings and}
^{construction, re}^{newable electric}^{power, energy}^efficient
^{vehicles, and biofuels developme}^nt
^{Electricity Transmission/Smart Grid}
^{Title VII, Subtitle B}^,^{Chapter 5, w}^{ould direct DOE to}^{No provisions.}^{No Senate provisions.}
ⁱ^{ki/CRS-RL34135}^{study tra}^{nsmission capacity in Cal}^{ifornia, Oregon, and}
^g/w^{Washington to determine w}^heth^{er it could sup}^{port new}
^s^.or^{electricity generation from ocean}^{wave, tidal, and current}
^le^ak^energy^{projects that}^{could contribute}^{up to}¹⁰^{% of total}
^{electricity use in those s}^tates.
^://wiki^{Title IX, Subtitle B}^,^{would create an electric grid}
^h^ttp^{modernization commission to study and propose}^policies
^{on “Smart Grid” tec}^{hnology implementation. A federal}
^25%^matching^grant^program^{would be created to}
^sup^{port implementation. DOE w}^{ould be directed to help}
^{deploy technologies and perform}^cooperative
^{demonstration projects with elec}^{tric utilities. States}
^{would be req}^{uired to consider re}^{gulatory standards t}^hat
^{would all}^{ow utilit}^{ies to recover smart grid investme}^nts
^through^{rates a}^{nd “decouple”}^{utility profits from}
^{electricity sales volume.}
^{Wind Farm I}^mpa^{cts on}^Wildlife
^{Title VII, Subtitle B}^,^{Chapter 4, r}^e^{quires t}^{he Depa}^rtment^{No provision.}^{No Senate provision.}

^{of the I}^{nterior to form a committ}^{ee to recommend}
^{guidance to minimize and assess i}^{mpacts of land-based}
^{wind turbine}^{s on wildlife and their habitat. State and}
^{federal laws (and regulations) would not be}^preem^pted.

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^{Renewable Energy R&D}
^{Title IV would authorize funding f}^{or DOE to conduct}^{Title II, Subtitle G, would d}^{irect DOE to create a}ⁿ^R&D^{Both bills include marine energ}^{y. The House}^bill
^{R&D programs on ma}^{rine (Subtit}^{le B), geothermal}^{program foc}^{used on “marin}^{e ene}^{rgy” tech}^{nology that}^{includes other e}^{nergy te}^ch^nologi^es.
^{(Subtitle C), so}^{lar (Subtitle D), an}^{d biofuels (Subtitle E)}^{produces electricity from wa}^ves,^{tides, currents, and}
^{energy R&D.}^{ocean ther}^{mal differences. (For}^{more backgrou}^{nd on}
^{marine ene}^{rgy, see CRS Report}^RL338^83,^I^ssues^Affecting
^{Tidal, Wave, and In-Stream Genera}^t^{ion Projects}^.)
^{Hydrogen A}^ward
^{Title IV,}^{Subtitle H, would direct}^{DOE to conduct a}^{No provision.}^{This provision is identical to the H-Prize in H.R. 632,}
^{competitive program to award ca}^{sh p}^{rizes (H-Prize) to}^which^pa^ssed^{the House before H.R.}^3221.
^{advance R&D, demonstration, an}^{d commercial application}
^{of hydrogen e}^{nergy te}^ch^nologies.
^{Price Gougin}^g
^{No provision.}^{Title VI would criminal}^{ize price gouging in fuel ma}^rkets^{No provision in House}^{bill. How}^{ever, on May}^23,²⁰^07,
^{during an e}^nergy^emerge^{ncy. (For more details, see CRS}^{the House}^{passed a}^{similar version in a sta}^{nd-alone bill,}
ⁱ^{ki/CRS-RL34135}^{Report RS222}^36,^Gasoline^{Price Increases: Federal and}^{H.R. 1252, t}^{he p}^{roposed Federal Price Gouging}
^g/w^{State Authority to Limit “Price Gougi}^ng”^.^{Prevention Act.}
^s^.or^Agric^{ulture Energy}
^le^ak
^{Title V assumes several of the}^pr^{ovisions from the ene}^rgy^{No provision.}^{The major distinction between t}^h^e^{agriculture e}^nergy
^://wiki^{title (T}^{itle IX) of H.R}^{. 241}^9—the^{Farm, Nutrition, and}^{Bioenergy Act of 2007}^{—that was p}^{assed by t}^{he House}^on^{titles of H.R. 3221 and}^{H.R. 241}⁹^{is that Title IX of H.R.}²⁴¹⁹^{has high}^{er f}^{unding levels an}^{d more provisions than}
^h^ttp^{July 2, 2}⁰⁰^{7. Both Title V of H.R.}³²²^{1 a}^{nd Title IX of}^{in Title V of H.R}^{. 3221. I}ⁿ^particu^{lar, H.R. 2419}
^{H.R. 2419}^ex^{pand and e}^xtend^sev^{eral provisions from the}^{proposes a total of $3.2}^{billion in new f}^{unding for Title}
^{energy title (Title IX) established by the}^{Farm Secu}^rity^{IX energy}^{provisions over}^{5 year}^{s compared with}^$2.2
^{Act of 20}^{02, including s}^u^b^{stantial increases in}^fu^{nding and}^billi^{on under Title V of H.R. 322}¹^.^{The most notable}
^{a heightened}^{focus on developing}^{cellulosic ethanol}^energy^{provision of H.R. 241}^{9 omitted from H.R. 322}¹
^{production. In}^{particular, Title V of H.R. 3221 i}^ncludes^{is a Biomass Energy Reser}^{ve (BE}^{R) program to provide}
^{nearly $}¹^{billion in production in}^{centive paym}^{ents on}^new^{financial and tech}^{nical assistance (}^{including five year}
^{biofuels production; new}^fu^nding^{to underwrite}^{up to}^{contracts) to landowners a}^{nd op}^{erators to grow}
^$1.6^billi^{on in loan guarante}^{es for}^{the development}^of^{dedicated energy crops a}^s^feedst^{ock for cellulosic}
^{new biorefineries; a}^{nd $}²³⁶^milli^{on in new}^fu^{nding for}^{ethanol and other}^energ^{y p}^roduc^tion.

^researc^{h on biomass}^{production, harvest, tra}^nsportation,
^{and storage. (For more backgrou}^{nd, see CRS Report}
^RL341^30,^{Renewable Energy Policy}^{in the 2008 Farm Bill}^.)

^{House-Passed H.R. 3}²²¹^{Senate-Passed H}^{.R. 6}^{Key Differences}
^ARPA-E
^{Title IV,}^{Subtitle A, would d}^{irect that an Adva}^nced^{No provision.}^Simi^{lar provision signed into law as part of t}^{he Ame}^rica
^{Research Projects Agen}^{cy - E}^ner^{gy be esta}^{blished at}^{Competes Act (P.L. 110-}^{69, §50}¹^2).

^DOE.
ⁱ^{ki/CRS-RL34135}
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

The proposed New Direction for Energy Independence, National Security, and Consumer
Protection Act (H.R. 3221) is an omnibus energy policy bill that consists mainly of provisions for
energy efficiency and renewable energy. It was composed of several bills that were reported from ⁸
various committees. In House floor action on August 4, 2007, several amendments to H.R. 3221
were adopted, including one that would establish a renewable energy portfolio standard (RPS).
The House approved the amended bill by a vote of 241-172. Minutes later, the tax provisions bill
(H.R. 2776) was approved and then incorporated into H.R. 3221. A brief description of the
provisions in H.R. 3221 and H.R. 2776 follows.
A description of some key provisions and amendments follows:
Renewable Energy Portfolio Standard (RPS).⁹ H.Amdt. 748 proposed an RPS target that would
reach 15% by 2020. Up to 4% of the target could be met with certain energy efficiency measures.
The amendment was approved by a vote of 220-190.
Renewable Energy and Energy Conservation Act (H.R. 2776). This bill proposed extensions and
additions of several tax incentives for renewable energy and energy efficiency, including a four-
year extension of the renewable energy electricity production tax credit. The bill was approved on
a separate floor vote by a tally of 221-189. It was subsequently incorporated into H.R. 3221.
Renewable Fuel Standard (RFS). Proposed Amendment 81 would have increased RFS to 36
billion gallons by 2022. It was withdrawn.
Corporate Average Fuel Economy (CAFE) Standards. Proposed amendments 62 and 95 offered
different policies for increasing CAFE standards. Proposed Amendment 95 was withdrawn, and
Proposed Amendment 62 was not included in the rule that prescribed floor action.
Oil Savings Provisions. Proposed Amendment 36 would have set a goal to reduce imported oil to
less than 25% of vehicle petroleum use by 2015. Proposed Amendment 72 would have called for
development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016, rising
significantly by 2025. Neither Amendment 36 nor Amendment 72 was included in the rule that
prescribed floor action.

⁸^T^h^e^{bills i}ⁿ^c^l^ude^{d H.R.}³⁶^{4, H}^.^{R. 23}⁰⁴^{, H.R.}²³¹³^{, H.R.}²³³⁷^{, H.}^{R. 23}⁸⁹^{, H.R.}²⁴²⁰^{, H.R.}²⁶³⁵^,^{H.R. 2}⁷⁰¹^{, H.R.}
²⁷⁷^{3, H}^.^R^.²⁷^74,^H^.^R^.²⁷^76,^H^.^R^.²⁸⁴⁷^{, a}ⁿ^{d a}^dr^a^f^{t bil}^l⁽^uⁿⁿ^um^be^r^e^d)^f^r^om^the^C^o^m^m^itte^e^{on Ene}^r^g^y^a^{nd C}^o^m^m^e^r^c^e^.
^More^de^ta^{ils a}^b^ou^{t t}^h^e^bills^a^r^e^a^v^a^ila^bleⁱⁿ^t^h^e^L^e^gⁱ^sla^{tion se}^c^tion^of^{this re}^por^t.
⁹^U^nde^{r a}ⁿ^R^P^S,^re^ta^{il e}^l^e^c^t^ric^ity^s^upp^lie^rs^(e^le^c^t^ric^utili^tie^s⁾^m^u^s^t^prov^ide^a^mⁱ^nim^u^m^am^{ount of}^e^l^e^c^t^ric^ity^f^r^o^m
^r^e^ne^w^a^ble^eⁿ^e^r^gy^r^e^s^our^c^e^s^or^pu^r^c^ha^s^e^tr^a^d^a^b^le^c^r^e^d^its^tha^t^r^e^pr^e^s^eⁿ^{t a}ⁿ^e^q^uiv^a^le^{nt a}^m^ount^of^r^e^ne^w^a^ble^eⁿ^e^r^gy
^pr^o^duc^ti^on.^T^h^e^mⁱⁿⁱ^m^u^m^r^e^quir^e^m^e^{nt is}^of^te^{n s}^e^{t a}^s^a^pe^r^c^eⁿ^ta^g^e^s^h^a^r^e^of^a^s^uppl^ie^r^’^s^tota^{l r}^e^ta^{il e}^l^e^c^tr^ic^ity^sa^le^s^.

This title assumes the provisions of H.R. 2947. It would authorize up to $125 million in funding
to establish national and state job training programs, administered by the U.S. Department of
Labor, to help address job shortages that are impairing growth in green industries, such as energy
efficient buildings and construction, renewable electric power, energy efficient vehicles, and
biofuels development.
This title assumes the provisions of H.R. 2420. It would declare U.S. policy on international
climate cooperation, authorize assistance to promote clean and efficient energy technologies in
foreign countries, and establish the International Clean Energy Foundation.
This subtitle would state that it is the policy of the United States to take a more active role in
international climate change negotiations including future fifteenth meeting of the Conference of
Parties (COP-15) to the United Nations Framework Convention on Climate Change. Also, the
United States would declare its intent to seek mitigation commitments from all major greenhouse
gas (GHG) emitting nations, including China, India, Brazil, and other major developing nations.
An Office on Global Climate Change would be established at the Department of State. The
Secretary of State would be required to report to Congress on progress made in promoting
transparency in extractive industries resource payments.
The U.S. Agency for International Development (USAID) would be directed to report to
Congress on efforts to support policies for clean and efficient energy technologies. The
Department of Commerce would be directed to increase efforts to export such technologies and
report to Congress on the results. Other U.S. agencies with export promotion responsibilities
would be required to increase efforts to support these technologies. Also, increased efforts are
requested from the Interagency Working Group on the Clean Energy Technology Exports
Initiative, particularly to implement its 2002 strategic plan. The Secretary of State would be
required to report to Congress on the impact of global climate change on developing countries.
The Foundation would be established with the long-term goal of reducing GHG emissions. It
would be directed to use the funds authorized by this subtitle to make grants to promote projects
outside of the United States that serve as models of how to reduce emissions. An annual report to
Congress would be required.

This title assumes the provisions of H.R. 2389. Loans, grants, and debentures that would be
established to help small businesses develop, invest in, and purchase energy efficient buildings,
fixtures, equipment, and technology. On May 23, 2007, the House Committee on Small Business
ordered reported H.R. 2389 by voice vote.
This title has eight subtitles, most of which correspond to a bill ordered reported by the House
Committee on Science and Technology.
This subtitle assumes the provisions of H.R. 364. ARPA-E would be established at the
Department of Energy (DOE). The new agency’s goal would be to reduce the energy imports
from foreign sources by 20% over the next 10 years. On May 23, 2007, the House Science and
Technology Committee ordered reported H.R. 364. On August 9, 2007, the President signed the
America Competes Act (P.L. 110-69). In that law, Section 5012 (Title V) directs that an ARPA-E
be established at DOE.
This subtitle assumes the provisions of H.R. 2313. DOE would be directed to support wave, tidal,
current, and ocean thermal energy technology R&D and commercial applications to help expand
energy production. Further, DOE would be instructed to award grants to institutions of higher
education (or consortia thereof) to establish National Marine Renewable Energy Research,
Development, and Demonstration Centers. On June 21, 2007, the House Committee on Science
and Technology reported H.R. 2313.
This subtitle assumes the provisions of H.R. 2304. DOE’s program for geothermal energy R&D,
demonstration, and commercial application would be expanded to cover certain advanced
concepts. On June 21, 2007, the Committee reported H.R. 2304.
Part 1 assumes the provisions of H.R. 2774. It aims to improve the cost and effectiveness of
thermal energy storage technologies that could improve the operation of concentrating solar
power electric generating plants. Also, it calls for improved integration of concentrating solar
power into regional electricity transmission systems. On June 22, 2007, the House Committee on
Science and Technology ordered reported H.R. 2774 by voice vote.
Part 2 would require DOE to create a Solar Energy Industries Research and Promotion Board and
a Solar Energy Research and Promotion Operating Committee. The Board and Committee would
work with manufacturers and importers of solar energy products to improve consumer awareness

of solar energy options and appropriate certifications. The solar program would be funded by a
small portion of industry revenues. No appropriations are authorized.
This subtitle assumes the provisions of H.R. 2773. It aims to improve information about federal
biofuels research programs, focus research on infrastructure and biorefineries, study potential
impacts of increased biofuels use, and increase authorized funding for DOE biofuels research. An
authorization of $25 million would be created to provide grants for biofuels RD&D and
commercial applications in states that have low rates of ethanol production. A university-based
program would provide grants up to $2 million for R&D on renewable energy technologies.
Priority would be given to universities in low income and rural communities with proximity to
trees dying of disease or insect infestation.
This Subtitle assumes the provisions of H.R. 1933. A program would be established at DOE for
carbon capture and storage R&D and demonstration. DOE would be directed to engage the
National Academy of Sciences (NAS) to conduct a review of the program. EPA would be directed
to assess potential impacts of such storage on public health and safety and the environment. DOE
would be directed to work with NAS to establish graduate degree programs on geological
sequestration at universities. Further, a university-based grant program would be created.
Part 1 would direct the President to establish an interagency committee to coordinate research on
global change. The committee would be responsible for developing a national global change
research and assessment plan. Further, a U.S. global change research program would be
established, with the Office of Science and Technology Policy (OSTP) serving as the lead agency.
A report to Congress would be required to accompany each annual budget request.
Part 2 would establish an interagency working group charged with recommending ways to
coordinate federal data management and archiving activities for climate data and other global
change data.
DOE would be directed to conduct a competitive program to award cash prizes to advance R&D,
demonstration, and commercial application of hydrogen energy technologies. The provisions of
this Subtitle are identical to those of H.R. 632, which passed the House on June 6, 2007.
This title assumes the provisions of H.R. 2419. Agricultural-based energy programs established
by the Farm Security Act of 2002 would be expanded and continued through FY2012. A total of
about $3.2 billion in new funding is proposed including $1.4 billion for biofuels production
incentives, $800 million to underwrite up to $2 billion in loan guarantees for biorefineries, $420
million for research on biomass feedstocks and production, and new mandatory funding for a

cellulosic biomass feedstock reserve. Most new funding would be directed away from corn-based
ethanol and toward cellulosic-based biofuels and other new technologies. USDA would be
directed improve feedstock flexibility for bioenergy producers by purchasing eligible
commodities and selling them to bioenergy producers in a way that ensures no cost to the federal
government and avoids forfeitures to the Commodity Credit Corporation. Except for sections
5011 and 5012, all other provisions of Title V are included in H.R. 2419, the Farm, Nutrition, and
Bioenergy Act of 2007, which passed the House on July 27, 2007. (For more background, see
CRS Report RL34130, Renewable Energy Policy in the 2008 Farm Bill.)
This title assumes the provisions of H.R. 2635. It would set a goal to make the federal
government carbon-neutral by 2050. Several energy and fuel efficiency policies would be
undertaken to meet this goal, including standards for federal fleet emissions, green buildings, and
agency purchases of renewable energy.
Each federal agency would be required to inventory and report on its GHG emissions annually.
EPA would be required to review the each agency’s inventory to see that it complied with
guidance for data collection. EPA would be directed to set a collective annual emission reduction
target for each year in the period from 2010 through 2050. The goal would be to achieve zero net
annual emissions (carbon-neutrality) by 2050. The Government Accountability Office (GAO)
would be required to issue a report on markets for GHG offsets. Federal agencies would be
allowed to purchase offsets and renewable energy certificates in open market transactions. This
subtitle would not preempt or limit any state actions to reduce emissions.
Federal agencies would be required to purchase “low GHG” vehicles and to procure energy-
efficient (Energy Star) products or products designated by the federal energy management
program (FEMP-designated). DOE would be directed to establish, by rule, revised federal
building energy efficiency performance standards for new federal buildings and major federal
building renovations. Relative to a comparable building’s fuel use in 2003, buildings covered by
the rule would be directed to reduce the share of fossil fuel use by 55% in 2010, reducing steadily
to 100% (zero emissions) by 2030. Each federal agency would be required to ensure that a large
capital investment in an existing building that is not a major renovation employs the most energy
efficient designs, systems, equipment, and controls that are life-cycle cost effective. Federal
agencies would be directed to avoid leasing buildings that are not Energy Star rated. Alternative
fuels could not be procured if they have GHG emissions greater than those produced by
conventional petroleum. Federal contracts for renewable energy could not exceed 30 years and
could not include energy generated from municipal solid waste. The Office of Management and
Budget (OMB) would be required to report annually on progress under Title VI.

Federal executive branch agencies would be directed to develop and implement a telework (work
from home or close to home) policy for eligible employees. It would exclude those employees
who handle secure materials or special equipment, are assigned to national security functions, or
voluntarily decline the telework option.
This title assumes the provisions of H.R. 2337. It includes provisions that would regulate wind
impacts on wildlife, require a study of transmission capacity to help foster ocean wave, tidal, and
current energy projects, create grants for studies of alternative energy development on the outer
continental shelf, and establish pilot programs to use federal lands to harvest woody biomass and
install concentrating solar power facilities.
Subtitle A would repeal subsections 365(g) and 365(i) of EPAct 2005 regarding recovery of
permit processing costs. It would require the Secretary of the Interior to impose fees on the oil
and gas industry to recover costs associated with the streamlining of permits during the pilot
project established by EPAct to improve federal permit coordination. A new 45-day deadline
would be imposed for the consideration of applications for permits under section 366 of EPAct
2005. Section 369 of EPAct would be amended by removing two deadlines related to oil shale
research and development and the preparation of a final environmental impact statement for
commercial oil shale and tar sands leasing on public lands. H.R. 3221 would limit section 390 of
EPAct, which allows for a rebuttleable presumption regarding the application of categorical
exclusion under the National Environmental Policy Act (NEPA) for oil and gas exploration and
development activities, and adhere to the regulations issued by the Council on Environmental
Quality. And a Best Management Practices (BMP) provision would require BLM to allow for
public comment and review before lease stipulation waivers are granted.
(More details on Subtitle A can be found in CRS Report RL34111, Energy Policy Reform and
Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas
Provisions.)
Chapters 1 through 3 would require a minimum of 550 audits annually, and increase fines for
royalty payment violations under the Federal Oil and Gas Royalty Management Act of 1982
(FOGRMA). Surface owner protection would be enhanced under split estates where the federal
government owned and leased minerals. Onshore oil and gas reclamation and bonding
requirements would become more stringent. Additional requirements for the protection of water
resources are included and new fees would be assessed to lessees of federal lands as a
disincentive to hold and not develop those lands. (More details on Chapters 1 through 3 of
Subtitle B can be found in CRS Report RL34111, Energy Policy Reform and Revitalization Act of

2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas Provisions.)

Chapter 4 on Wind Energy would require the Department of the Interior to form a wind turbines
guidelines advisory committee to study and recommend guidance for wind energy developers to
mitigate the impact of turbines on birds and wildlife. State laws and regulations would not be
preempted.
Chapter 5 on Enhancing Energy Transmission would direct DOE to study transmission capacity
in California, Oregon, and Washington to determine whether it could support new electricity
generation from ocean wave, tidal, and current energy projects that could contribute up to 10% of
total electricity use in those states.
A grant program would be created for studies of alternative energy development on the outer
continental shelf. The Department of the Interior would be directed to assess and report to
Congress on the potential for using leasing of federal lands and other means to help develop
rights-of-way and infrastructure along Bureau of Reclamation canals to support solar and wind
energy production. A program would be established to research methods for improving the energy
efficiency of reverse osmosis technology that is used for water desalination, water recycling, and
clean up of water contamination. A pilot program would be created to develop a strategic solar
reserve, and would identify and assess potential sites on federal lands for concentrating solar
power systems. The National Oceanic and Atmospheric Administration would be directed to issue
regulations necessary to implement its authority to license offshore thermal energy conversion
facilities. A program would be established to use biomass from federal forest lands.
Chapter 1 would direct the Department of the Interior to develop a methodology for an
assessment of the national potential for geological storage of carbon dioxide. Chapter 2 would
direct the U.S. Geological Survey to estimate the potential for increasing carbon sequestration in
natural systems through management measures or restoration activities in each ecosystem. A
report to Congress would be required. Chapter 3 would direct the Bureau of Land Management to
maintain records on, and an inventory of, the amount of carbon dioxide stored in geological
structures on federal lands. A report to Congress would be required that estimates the potential
capacity for such storage on federal lands.
Chapter 4 would direct the Department of the Interior to establish an interagency National
Resources Management Council on Climate Change to address the impacts of climate change on
Federal lands, the ocean environment, and the federal water infrastructure. The Council would
prepare a national plan that would be presented to Congress. Also, a national policy would be
established that directs the federal government to cooperate with state, tribal, and affected local
governments, other concerned public and private organizations, landowners, and citizens to use
all practicable means and measures to assist wildlife populations and their habitats in adapting to
and surviving the effects of global warming. A national strategy would be developed, an advisory
board would be formed, and a state and tribal grants program would be established.
Chapter 5 would direct the Department of Commerce to develop a national strategy to support
coastal state and federal agency efforts to predict, plan for, and mitigate the impacts on ocean and
coastal ecosystems from global warming, relative sea level rise, and ocean acidification. Further,
it would be directed to develop a coastal climate change resiliency planning and response

program to prepare for and reduce the negative consequences that may result from climate change
in the coastal zone, and provide financial and technical assistance and training. Also, a National
Integrated Coastal and Ocean Observation System would be established to improve the Nation’s
capability to measure, track, explain, and predict events related directly and indirectly to weather
and climate change.
This Subtitle would require that the Secretary of the Interior accept a lessee’s request to modify
certain leases established in 1998 and 1999 without price thresholds (“covered leases”) to include
price thresholds. Lessees holding “covered leases” would not be eligible for new oil and gas
leases in the Gulf of Mexico unless the covered leases are modified to include price thresholds or
the lessee would agree to pay a newly established “conservation of resources fee.” The Subtitle
would repeal royalty relief provisions established by sections 344 and 345 of the Energy Policy
Act of 2005 (P.L. 109-58). It would also “reaffirm” the Secretary’s authority to impose a price
threshold in certain leases. This Subtitle is nearly identical to Title II of the House-passed version
of H.R. 6.
(More details on Subtitle E can be found in CRS Report RS22567, Royalty Relief for U.S.
Deepwater Oil and Gas Leases.)
Subtitle F would establish an Oil Shale Community Impact Assistance Fund. Also, for certain
existing federal leases, it would prohibit surface occupancy for oil and gas drilling on Colorado’s
Roan Plateau, which is federal land formerly designated as Naval Oil Shale Reserves. (More
details on oil and natural gas provisions in Subtitle F can be found in CRS Report RL34111,
Energy Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and
Discussion of Oil and Gas Provisions.)
Also, the Minerals Management Service would be directed to report to Congress on the status of
regulations required by the Outer Continental Shelf Lands Act with respect to wind energy
production on the outer continental shelf.
This title assumes the provisions of H.R. 2701. It would promote energy efficient transportation
and public buildings and create incentives for the use of alternative fuel vehicles and renewable
energy. On June 20, 2007, the House Committee on Transportation and Infrastructure ordered
reported H.R. 2701 by voice vote.
A Center for Climate Change and Environment would be established to plan, coordinate, and
implement strategies to reduce transportation-related energy use, mitigate the effects of climate
change, and address the impacts of climate change on transportation systems and infrastructure.

Part 1 provides support for public transportation systems. Federal grants up to 100% of costs
would be made available to improve public transportation services that involve fare reductions.
For projects that involve acquiring clean fuel or alternative fuel vehicle-related equipment or
facilities for the purposes of complying with the Clean Air Act, federal grants would be made
available that cover up to 100% of net costs. The Surface Transportation Board’s mediation
capacity would be expanded to assist public transportation agencies seeking track rights of way
with rail carriers. DOT would be directed to create a pilot program to conduct vanpool
demonstration projects in three urbanized areas and two non-urbanized areas to increase vanpool
use and the number of vanpools in service.
Part 2 provides support for federal-aid highways. The federal share for congestion mitigation and
air quality (CMAQ) projects would be increased up to 100% of project or program cost. A sense
of Congress would be established that in constructing new roadways or rehabilitating existing
facilities, state and local governments should employ policies designed to accommodate all users,
including motorists, pedestrians, cyclists, transit riders, and people of all ages and abilities.
Part 1 would direct DOT, in coordination with EPA, to establish and conduct a pilot grant
program to assist railroad carriers in purchasing hybrid locomotives, including hybrid switch
locomotives, in order to demonstrate the extent to which such locomotives increase fuel economy,
reduce emissions, and lower costs of operation. Also, DOT would be directed to create a program
of capital grants for the rehabilitation, preservation, or improvement of railroad track (including
roadbed, bridges, and related track structures) of class II and class III railroads.
Part 2 would direct DOT to conduct feasibility studies for the construction of pipelines dedicated
to ethanol transportation. A report to Congress would be required.
Part 1 would direct DOT to establish a short sea transportation program and designate short sea
transportation projects to be conducted under the program to mitigate landside congestion. Short
sea shipping activities would be made eligible for support from DOT’s capital construction fund.
A report to Congress on the short sea transportation program would be required. Part 2 would
strengthen certain provisions that aim to prevent pollution from ships.
DOT, in coordination with EPA, would be directed to establish a pilot demonstration grant
program to reduce noise, airport emissions, greenhouse gas emissions, or water quality impacts.
Each project grant would be limited to a maximum of $2.5 million.
Under Part 1, for each prospective project to construct, alter, acquire, or lease a building, the
General Services Administration (GSA) would be directed to prepare estimates of the future

energy performance of the building and a description of the use of energy efficient and renewable
energy systems, including photovoltaic systems, in carrying out the project. The period for
calculating life-cycle cost effectiveness in federal buildings would be extended from 25 years to
40 years. GSA would be directed to use up to $30 million authorized from unobligated balances
of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the
DOE headquarters building in Washington, DC.
Part 2 would prohibit, except under certain circumstances, the purchase of incandescent light
bulbs for use in Coast Guard office buildings.
Part 3 would allow the Architect of the Capitol (AOC) to perform a feasibility study regarding
construction of a photovoltaic roof for the Rayburn House Office Building. The AOC may
construct a fuel tank and pumping system for E—85 fuel at or within close proximity to the
Capitol Grounds Fuel Station. To the maximum extent practicable, the AOC would be required to
include energy efficiency measures, climate change mitigation measures, and other appropriate
environmental measures in the Capitol Complex Master Plan. For the purpose of reducing carbon
dioxide emissions, the Architect of the Capitol would be directed to install technologies for the
capture and storage or use of carbon dioxide emitted from coal combustion in the Capitol Power
Plant. AOC would be directed to operate the steam boilers and chiller plant at the Capitol Power
Plant in the most energy efficient manner possible to minimize carbon emissions and operating
costs.
Part 1 would declare a federal policy that all federal water resources projects reflect national
priorities for flood damage reduction, navigation, ecosystem restoration, and hazard mitigation
and consider the future impacts of increased hurricanes, droughts, and other climate change-^st
related weather events. A 21 Century Water Commission would be established to project future
water supply and demand, impacts of climate change to the nation’s flood risk and water
availability; and associated impacts of climate change on water quality. EPA would be directed to
arrange with NAS for a study that will identify the potential impacts of climate change on the
nation’s watersheds and water resources, including hydrological and ecological impacts,
including the potential impacts of climate change on water quality. The Secretary of the Army
would be directed to ensure that water resources projects and studies carried out by the Corps of
Engineers take into account the potential short and long term effects of climate change.
Part 2 would direct the Federal Emergency Management Agency (FEMA) to conduct a
comprehensive study of the increase in demand for FEMA’s emergency preparedness, response,
recovery, and mitigation programs and services that may be reasonably anticipated as a result of
an increased number and intensity of natural disasters affected by climate change, including
hurricanes, floods, tornadoes, fires, droughts, and severe storms.
This title assumes the provisions of a draft bill adopted by the House Committee on Energy and
Commerce on June 28, 2007.

This subtitle has nine parts.
Part 1 on appliance efficiency would set new efficiency standards for residential clothes washers,
dishwashers, dehumidifiers, refrigerators, refrigerator-freezers, freezers, electric motors, and
residential boilers. DOE would be allowed to establish regional variations in standards for heating
and air conditioning equipment. DOE would be required to complete a rulemaking process for
furnace fans by 2013. Federal agencies would be directed to purchase devices that limit standby
power use. DOE would be directed to issue a final rule that sets energy conservation standards for
battery chargers. Certain energy efficiency measures for walk-in coolers and walk-in freezers
would be set by legislation. Also, several procedural changes would be made to expedite the DOE
rulemaking process.
Part 2 would set a mandatory target for lighting efficiency, set a standard for incandescent
reflector lamps, and require federal agencies to replace incandescent lights with more efficient
ones. Energy efficiency standards would be set by legislation for metal halide lamp fixtures
designed to be operated with lamps rated between 150 watts and 500 watts.
Part 3 on residential buildings would encourage stronger state building codes, require improved
codes for manufactured housing, and reauthorize the DOE Weatherization program. DOE would
be directed to conduct a study of the renewable energy system rebate program described in
§206(c) of the Energy Policy Act of 2005. The study would determine the minimum funding the
program would need to be viable and require a proposed implementation plan.
Part 4 on commercial and federal buildings would create an Office of High Performance Green
Buildings at DOE. The office would be required to use life-cycle costing and allow agencies to
retain cost savings. Federal procurement of green building materials would be increased. Federal
agencies would be required to identify energy- and water-saving measures. Demonstration
projects would be required at federal facilities and universities. A national goal would be set to
achieve zero-net-energy use for new buildings constructed after 2025. Public outreach would be
established, including green building technical assistance and information. An EPA program
would be established to improve energy efficiency in data centers. Certain green building
renovation projects would be eligible for loan guarantees under §1703 of EPACT. GSA would be
directed to use available appropriations to support a program to accelerate the use of geothermal
(ground source) heat pump equipment in federal facilities. In each purchase of meeting and
conference services, federal agencies would be required to consider the environmentally
preferable (green) features and practices of a vendor in a manner similar to that already
implemented by EPA. A grant program would be established to provide up to $1 million in
support of energy efficiency projects at universities.
Part 5 on industrial energy efficiency would direct EPA to identify the potential for economically
feasible waste energy recovery, create a grant program to support waste energy recovery, and
strengthen “clean energy centers” that analyze waste energy recovery.
Part 6 on energy efficiency of public institutions would promote combined heat and power
systems in public institutions through federal revolving fund loans. EPA would be directed to
conduct a study of how sustainable building features, such as energy efficiency, affect perceived
indoor environmental quality for students in K-12 schools.

Part 7 on energy savings performance contracting (ESPC) would allow use of appropriated funds
for ESPCs, eliminate the ESPC program sunset, require training for federal agency contract
officers, direct that energy savings be measured, and create a DOE advisory committee to assist
with deployment strategies.
Part 8 would create an advisory committee on energy efficiency financing.
Part 9 would establish an energy efficiency block grant program.
This subtitle would create an electric grid modernization commission to study and propose
policies on “Smart Grid” technology implementation. A federal 25% matching grant program
would be created to support implementation. DOE would be directed to help deploy technologies
and perform cooperative demonstration projects with electric utilities. States would be required to
consider regulatory standards that would allow utilities to recover smart grid investments through
rates and “decouple” utility profits from electricity sales volume.
This subtitle would amend EPACT Section 1702(c) on loan guarantees to clarify that DOE should
approve project amounts likely to attract other investment, may not establish a loan guarantee
limit below 80% of total project cost, and should require assurances that construction workers
will be paid prevailing wage rates. Also, categories of projects deemed eligible in EPACT Section

1703 could not be excluded by language in appropriations bills.

Part 1 of this subtitle would direct DOE to create a grant program to help establish or convert
infrastructure to use renewable fuels, including E85 (85% ethanol). The EPACT authorization for
grants to support cellulosic ethanol production would be increased. A grant program would be
created to support production of flexible-fueled vehicles. Studies would also be required on the
market penetration of flexible-fueled vehicles, the feasibility of constructing dedicated ethanol
pipelines, the feasibility of using greater percentages of ethanol in fuel blends, and the adequacy
of railroad transportation for delivery of ethanol fuel. Part 2 of this subtitle would establish a
grant program and advisory board for U.S.-Israel energy cooperation. The provisions of this
Subtitle are identical to those of H.R. 3238.
This subtitle would establish a loan guarantee program for advanced battery development, grant
programs for plug-in hybrid vehicles, incentives for purchasing heavy duty hybrids for fleets, and
credits for various electric vehicles.
This Subtitle would improve data collection needed by the DOE’s Energy Information
Administration to support efficient energy markets.

Each natural gas utility would be required to make energy efficiency a priority resource and
integrate energy efficiency into its plans and planning processes. Further, state regulators would
be directed to consider crafting rate policies that align utility revenue recovery measures with
incentives for energy efficiency measures. This Subtitle was added by floor amendment (H.Amdt.

755), which was approved by voice vote.

This Subtitle would modify Title VI of the Public Utility Regulatory Policies Act of 1978 to
establish an RPS for retail electric utilities that would be administered by DOE. For each retail
supplier that sells more than one billion kilowatt-hours (kwh) per year, the RPS would set a
minimum electricity production requirement from renewable resources. The standard would start
at 2.75% in 2010 and then rise annually until reaching a peak of 15% in 2020. Electricity savings
from energy efficiency measures would be allowed to compose a maximum of 25% of the
standard in any given year, rising to a peak of 4% of the 15% total in 2020. Many provisions in
this Subtitle are similar to those of H.R. 969. This Subtitle was added by floor amendment
(H.Amdt. 748), which was approved by a vote of 220 to 190.
(More details on Subtitle H can be found in CRS Report RL34116, Renewable Energy Portfolio
Standard (RPS): Background and Debate Over a National Requirement.)
Congress expresses its recognition and support for renewable energy. In particular, this
recognition and support is conferred on clean, consistent, pollution-free large and small scale
conventional hydropower energy. This Subtitle was added by floor amendment (H.Amdt. 755),
which was approved by vote of 402 to 9.
This Title would extend the renewable electricity production tax credit (PTC) for four years,
expand the PTC to include ocean thermal and hydrokinetic (wave, tide, and current) energy,
extend the 30% business energy tax credit for solar and fuel cell equipment for eight years,
authorize $2 billion of clean renewable energy bonds, and remove the cap on the tax credit for
residential solar and fuel cell equipment. (For more discussion of these tax provisions see CRS
Report RL33578, Energy Tax Policy: History and Current Issues.)

Transportation fuel incentives would set a $4,000 credit for plug-in hybrid vehicles, establish a 50
cent per gallon production tax credit for cellulosic ethanol fuel, extend the biodiesel production
tax credit for two years, increase the alternative refueling stations tax credit, create a fringe
benefit for bicycle commuters, and modify depreciation and expensing rules to close a loophole
for gas guzzlers by making the incentives available for fuel efficient vehicles. (For more
discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and
Current Issues, by Salvatore Lazzari.)
Other energy efficiency provisions include a tax credit bond for community programs to reduce
greenhouse gases, a tax credit bond for states to provide loans and grants for home improvements
and residential equipment, an extension of the tax deduction for commercial buildings, an
extension and modification of the appliance credit, and the establishment of a five-year
depreciation period for smart electric meters. Also, the bill would clarify that the $1 per gallon
production credit for renewable diesel would be available only for fuel produced from biomass. A
study of biofuels’ future production potential and possible domestic impacts would be required.
(For more discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy:
History and Current Issues.)
(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and
Current Issues.)
(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and
Current Issues.)
(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and
Current Issues.)

(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and
Current Issues.)

The proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 (H.R.
6) is an omnibus energy policy bill that consists mainly of provisions for energy efficiency and
renewable energy. The House version of H.R. 6 was amended on the Senate floor. S.Amdt. 1502, ¹⁰
an amendment in the nature of a substitute, replaced the House version with the text of S. 1419.
Several second degree amendments to S.Amdt. 1502 were adopted. The Senate approved the
amended bill by a vote of 65-27 on June 21, 2007.
A description of some key provisions and amendments follow:
Renewable Fuel Standard (RFS). Section 111 would increase RFS to 8.5 billion gallons per year
by 2008, rising to 36 billion gallons by 2022.
Corporate Average Fuel Economy (CAFE) Standards. The CAFE standard in Section 502 was
modified by S.Amdt. 1792. The adopted provision proposes increases to the combined average
fuel economy standard for cars and light trucks that would reach 35 miles per gallon (mpg) by
2020. This would be an increase of about 10 mpg over current standards. The amendment (as
modified by S.Amdt. 1843) was adopted by voice vote.
Oil Savings Provision. S.Amdt. 1505 established this provision as Section 251. The provision
calls for development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016,
rising to 10 mbd by 2031, about 35% of projected demand for that year. The amendment was
adopted by a vote of 63-30.
Renewable Portfolio Standard (RPS).¹¹ S.Amdt. 1537 would have added a new title to create an
RPS that would reach 15% by 2020. Certain energy efficiency measures would have also been
allowed to help fulfill the RPS. The amendment was never considered for a vote and, after a
successful cloture vote on S.Amdt. 1502, the RPS amendment was ruled non-germane. Also,
S.Amdt. 1538 would have amended S.Amdt. 1537 to create a 20% “clean portfolio standard” that
included renewables, efficiency, coal, and nuclear energy. The amendment was tabled by a vote of

56-39.

Tax Provisions. S.Amdt. 1704 would have added a new tax title that included some of the
provisions for renewables and energy efficiency in S. 1531. The proposed amendment included a

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five-year extension of the renewable electricity production tax credit. It also included many
provisions for biofuels and some provisions for oil, coal, and vehicles. The amendment failed to
achieve cloture by a vote of 57-36, and was subsequently ruled non-germane. A brief summary of
each of these eight titles in the Senate-passed version of H.R. 6 follows.
Title I would increase the renewable fuel standard, set some standards for greenhouse gas
emissions reductions, and provide support for fuel infrastructure, feedstocks, and biorefineries.
Subtitle A would extend and increase the renewable fuel standard (RFS), which establishes
minimum annual levels of renewable fuel in gasoline. The modified standard would start at 8.5
billion gallons in 2008 and rise to 36 billion gallons in 2022. Starting in 2016, an increasing
portion of the requirement would have to be met with advanced biofuels, including cellulosic
ethanol, biobutanol, and other fuels derived from unconventional biomass feedstocks. Renewable
fuels produced from new biorefineries would be required to achieve at least a 20% reduction in
life cycle greenhouse gas emissions relative to life cycle emissions from gasoline (§
111[a][1][i][II]). A voluntary labeling program would be established for renewable fuels, based on
life cycle greenhouse gas emissions (§ 111[i]). Fuel produced from biorefineries that displaces
more than 90% of the fossil fuels used in a biofuel production facility would qualify for
additional credits under the RFS (§ 112).
Subtitle B would provide grants for renewable fueling infrastructure (§ 121), increase the
Department of Energy (DOE) bioenergy R&D funding authorization (§ 122), establish 11
bioenergy research centers (§ 123), provide loan guarantees for renewable fuel facilities (§ 124),
provide research grants for states with low rates of ethanol production (§ 125), provide grants for
infrastructure for transportation of biomass to local refineries (§ 126), establish a biorefinery
information center (§ 127), create an alternative fuels database (§ 128), set a labeling requirement
for alternative fuels (§ 129), and set a national biodiesel fuel quality standard (§ 130).
Subtitle C would require that several studies be conducted, covering specialized topics on
biofuels, ethanol, electric vehicles, and biodiesel.
DOE would be directed to create a grant program to encourage production of advanced biofuels
(§161). Grant awards would be made to projects that would have the greatest reduction in
lifecycle greenhouse gas (GHG) emissions. The projects must also reduce GHG emissions by at
least 50%. Studies, and subsequent reports to Congress, would be required on environmental
impacts of increased use of renewable fuels attributable to the provisions of this bill (§162).
Specific aspects would include air and water quality, land use patterns, deforestation rates, GHG
emissions, and the long-term capacity to produce biomass feedstocks. Also, EPA would be

directed to study whether the volumes of renewable fuel required under Subtitle A would
adversely impact air quality.
Title II would set some new standards for energy efficient equipment, establish goals for fuel
savings, strengthen federal energy efficiency requirements, and authorize several new programs
for vehicles and grants.
Subtitle A would promote advanced lighting technology by requiring all federal lighting to be
Energy Star rated by 2010 (§ 211), expanding efficiency standards for incandescent reflector
lamps (§ 212), creating the “Bright Tomorrow” lighting prizes for solid state (LED) lighting
developments (§ 213), and establishing a “Sense of the Senate” to pass mandatory energy
efficiency performance targets for lighting products (§ 214). Also, the Committee markup added a
notable provision that did not appear in S. 1115. That provision would authorize grants to support
construction of solar, wind, geothermal, ocean, biomass, landfill gas, and Alaska small
hydropower projects (§ 215).
Subtitle B would establish, by statute, new energy efficiency standards for residential boilers (§ ¹²
227), electric motors (§ 229), and some home appliances (§ 230). DOE would be directed to set
standards by rulemaking for furnace fans (§ 223). Also, DOE would be allowed to set standards
for multiple components (§ 221) and regional standards for heating and cooling equipment (§
222). Further, this subtitle would authorize R&D on improved efficiency for appliances and
buildings in cold climates (§ 231) and provide incentives for the manufacture of high-efficiency
consumer products (§ 232). Other provisions would guide expedited rulemakings (§ 224), clarify
limits to federal preemption of state standards (§ 225), and require Energy Guide labels for
several types of consumer electronic products (§ 226). Also, the Committee markup added a
provision that would direct DOE to establish a program that supports, develops, and promotes the
use of new technologies to improve energy efficiency in materials manufacturing and energy-
intensive industries (§ 233).
Subtitle C would promote high-efficiency vehicles, advanced batteries, and energy storage. DOE
would be authorized to fund an R&D program on light-weight materials (§ 241). A loan
guarantees program would be created for facilities that manufacture fuel-efficient vehicles (§
242). Funding awards for qualified investments would be authorized to refurbish manufacturing
facilities that produce advanced technology vehicles (§ 243). A 10-year R&D program would be
authorized to support U.S. competitiveness in global energy storage markets, and a five-year
R&D program would be authorized for electric drive technologies (§ 244). Also, the Committee

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markup added a provision that would direct DOE to establish a competitive grant program for
state, regional, and local government entities to demonstrate electric drive vehicles. DOE would
also be required to establish a program to deploy technologies that would achieve near-term oil
savings in the transportation sector (§ 245).
Subtitle D would set several energy efficiency goals that include reducing gasoline use 45% by

2030 (§ 251) and improving energy productivity by 2.5% in 2012 and each year thereafter ¹³

through 2030 (§ 252). Also, DOE would be authorized to conduct a four-year national media
campaign to educate consumers to save energy and reduce oil use (§ 253), and federal agencies
would be authorized to carry out programs for demonstration and use of advanced electricity
transmission and distribution technologies (§ 254).
Subtitle E would promote federal leadership in energy efficiency and renewable energy. Federal
and state fleets would be required to reduce petroleum use 30% by 2016 (§ 261). The renewable
energy share of federal energy purchases would increase to 15% by 2015 (§262). The
authorization for federal agencies to use Energy-Saving Performance Contracts (ESPCs) would
be extended permanently (§ 263). Federal buildings would be required to reduce energy use 30%
by 2015 (§ 264). DOE would be directed to identify federal sites for installing combined heat and
power (§ 265). Federal buildings would be required to reduce fossil energy use by 50%,
compared with similar buildings from the past that were not subject to the standard (§ 266). The
Department of Housing and Urban Development (HUD) would be required to update efficiency
standards for all public and assisted housing (§ 267). DOE would be authorized to conduct R&D
and deployment activities that help increase the energy-efficiency of commercial buildings (§

268).

Subtitle F would improve energy efficiency assistance to state and local governments by
increasing the authorization for the DOE Weatherization program (§ 271), reauthorizing the State
Energy program (§ 272), requiring state utility regulatory commissions to consider federal
standards to promote energy efficiency (§ 273), authorizing the National Renewable Energy
Laboratory (NREL) to provide technical assistance (§ 274), authorizing grants to local
governments (§ 275), authorizing grants to universities for demonstration projects (§ 276),
authorizing workforce training programs (§ 277), and authorizing funds for education programs
to reduce school bus idling (§ 278).

¹³^T^h^e^de^s^c^rⁱ^ptio^{n of}^Se^c^tio^{n 2}⁵²^oⁿ^pa^g^e¹⁴^of^the^C^o^m^m^itte^e^’^s^r^e^p^o^r^t⁽^S^.R^e^p^t.¹¹^0-⁶⁵⁾^s^a^y^s^tha^t^“ⁿ^a^tiona^{l e}ⁿ^e^r^gy
^pr^o^duc^tiv^ity^”^w^ould^be^m^e^as^ur^e^d^a^s^“^g^r^o^s^s^dom^e^s^tic^pr^oduc^{t (}^G^D^P⁾^pe^r^uⁿ^it^of^eⁿ^e^r^gy^input.”

DOE would be directed to create an R&D program focused on technology that produces
electricity from waves, tides, currents, and ocean thermal differences (§291-292). A report to
Congress would be required. Also, DOE would be directed to establish national ocean energy
research centers at one to six universities (§293).
Title III would call for large-scale testing of carbon dioxide (CO²) storage in geological
formations, establish competitive funding awards, direct that a national storage capacity
assessment be conducted, and require that the Department of Energy (DOE) demonstrate the use
of large-scale capture technologies at industrial facilities.
Subtitle A would direct the General Services Administration (GSA) to establish a program to
speed the use of cost-effective energy-efficient lighting equipment and other technologies and
practices (§402). Further, GSA would be required to prepare a five-year plan to replace inefficient
lighting in GSA buildings using available funds. Also, an EPA matching grant program would be
created to help local governments renovate buildings to improve energy efficiency (§403). For
this program, $20 million would be authorized.
GSA would be directed to use up to $30 million would be authorized from unobligated balances
of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the
DOE headquarters building in Washington, D.C.
Part 1 would direct GSA to establish an Office of High-Performance Green Buildings and a Green
Building Advisory Committee to support R&D and outreach to spur the federal government
toward the construction of high performance green buildings. A green building information
clearinghouse would be established. The Office would be directed to establish a standard for
certification of green buildings. A report to Congress would be required.
Part 2 would create a program for Healthy High-Performance Schools that aims to involve states,
local governments, and school systems building green schools. EPA, in consultation with the
Department of Education, would be allowed to provide grants to state agencies to provide
technical assistance and help with the development of state plans for school building design. Also,
EPA would be directed to develop model voluntary guidelines for school site selection. In
addition to other environmental aspects, the grants and guidelines would have a focus on energy
efficiency, natural daylighting, and other energy-related features.

Part 3 on Strengthening Federal Leadership would direct the Office of Green Buildings to
identify incentives that would encourage the use of green buildings in federal operations.
Incentives could include recognition awards and agency retention of cost savings (§451). The
Office of Federal Procurement Policy would be directed to revise acquisition regulations to
require that acquisition, construction, and major renovations employ green design and to give
preference in leasing to buildings that are energy-efficient (§452). The Comptroller General
would be directed to conduct an audit of the implementation of this Subtitle and submit a report
to Congress that describes the findings (§453). Strategies for addressing storm water runoff would
be required for federal facility development projects (§454).
Part 4 would call for a Demonstration Project. The Office of Green Buildings would be directed
to prepare guidelines for the implementation of a federal demonstration project that would
contribute to the research goals of the Office. Funding would be authorized at $10 million per
year over five years.
Title V, the Ten-in-Ten Fuel Economy Act of 2007, would require that the corporate average fuel
economy standard (CAFE) for new cars and light trucks be increased to 35 miles per gallon
(mpg) by 2020 and require a 4% annual increase for 10 years thereafter. Starting in 2011, a 4%
annual increase would also be required for medium- and heavy-duty trucks.
Title VI would criminalize price gouging in fuel markets during an energy emergency.
Title VII would express the sense of Congress on several aspects of international energy
cooperation, with a special emphasis on increasing the use of sustainable energy sources. The
Department of State would be encouraged to establish four new types of administrative
mechanisms. One type of mechanism would be strategic energy partnerships with the
governments of major energy producers and consumers, and with governments of other countries.
A second type would be petroleum crisis response mechanisms with the governments of China
and India. A third would be a Western Hemisphere energy crisis response mechanism. A fourth
would be a regionally-based ministerial Hemisphere Energy Cooperation Forum. Also, the
Department of State would be encouraged to approach other governments in the Western
Hemisphere to cooperate in establishing a “Hemisphere Energy Industry Group” of industry and
government representatives, which would be coordinated by the U.S. government.
The President would be encouraged to introduce the topic of “the merits of establishing an
international energy program application procedure” for discussion at the Governing Board of the
International Energy Agency. Also, the bill would establish a “Hemisphere Energy Cooperation
Forum,” that would be encouraged to implement an Energy Crisis Initiative, an Energy
Sustainability Initiative, and an Energy for Development Initiative.

Title VIII, Miscellaneous, would require that DOE study and report on the laws and regulations
that affect the siting of privately owned electric distribution wires on and across public rights-of-
way.
A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the
proposed substitute to H.R. 6. The proposed tax package amendment included incentives for
renewable energy and energy efficiency as well as oil and natural gas revenue offset provisions.
The proposed revenue offsets were similar to, but more extensive than, the offsets proposed in
Title XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a ¹⁴
cloture motion to limit debate.
Part I would have extended the PTC for 5 years and expanded it to include ocean thermal and
hydrokinetic (wave, tide, and current) energy. Also, it would have extended the 30% business
energy tax credit for solar and fuel cell equipment for 8 years and repealed the public utility
exclusion. It would have authorized $3.6 billion of CREBs, and raised the cap on the tax credit
for residential solar and fuel cell equipment. A new credit would have been created for residential
wind equipment. Two incentives for electric transmission would have been established. Also, Part
I would have improved depreciation for energy management devices.
Part II would have created three tax incentives for carbon dioxide sequestration.
Part III would have provided several tax incentives for production of cellulosic ethanol and
certain other biofuels.
Part IV would have created a credit for plug-in hybrids, capped at $7,500 to $15,000, depending
on vehicle weight. The credit for alternative-fueled vehicles would have been extended for 2
years. An exclusion from heavy truck tax would have been established for idling reduction units
and certain truck insulation measures.

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Part V would have extended the existing home efficiency retrofit credit for 2 years, the new home
credit for 3 years, the commercial building credit for 5 years, and the home appliance credit
would have been extended and expanded.
Part VI would have called for a cost-benefit study of pollution reduction, a study of the effect of
tax benefits for prices on consumer goods, and a study of tax-credit bonds.
Subtitle A on Energy Advancement and Investment had two subparts. Subpart A would have
established certain tax measures for timber property. Subpart B would have set out certain tax
measures for coal. Subtitle B on Revenue Raising Provisions included several tax modifications
that aimed to reduce certain subsidies for oil and natural gas development. The resultant funds
would have been used to offset the costs associated with the new tax incentives for energy
efficiency and renewable energy.
The proposed Clean Renewable Energy and Economic Development Incentives Act of 2007 (S.
1531) is an omnibus energy tax policy bill that consists mainly of provisions for renewable
energy. It has two titles. Title I proposes Tax Incentives for Energy Conservation and Exploration.
Title II proposes Investment Tax Credits with Respect to Solar Energy Property and
Manufacturing.
On the Senate floor, S.Amdt. 1704 would have added a new tax title that included some of the
provisions for renewables and energy efficiency in S. 1531. The amendment failed to achieve
cloture by a vote of 57-36, and was subsequently ruled non-germane.
Title I of S. 1531 would extend three existing tax incentives and establish six new ones.¹⁵ Section

101 would extend the renewable energy electricity production tax credit (PTC) for 10 years, to ¹⁶

the end of 2018. For certain large facilities, such as geothermal and biomass power plants, credit ¹⁷
eligibility could be extended for up to two years after the placed-in-service deadline. Section ¹⁸
102 would extend the clean renewable energy bonds (CREBs) for 10 years. The national total

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⁽^c^onti^nue^d.^..)

bond limit would be $1.2 billion per year for 2007 through 2008 and $1.0 billion per year for
2009 through 2018. Section 103 would establish a tax credit bond for water conservation. Section
104 would create a 10% investment tax credit for geothermal exploration. For residential
installations of small wind equipment, Section 105 would establish a 30% investment tax credit,
with a limit of $1,000 per kilowatt (kw). Section 106 would extend for five years the investment ¹⁹
tax credit for the construction of new energy efficient homes. Section 107 would create a 20%
investment tax credit for manufacturing equipment used to produce advanced batteries. Section
108 would establish renewable school energy bonds, with a national bond limit of $50 million in
2008, $100 million in 2009, and $150 million in 2010. Under Section 109, bonds would be issued
to finance new renewable energy facilities, including equipment that uses tidal, wave, current,
and ocean thermal energy.
Title II of S. 1531 would permanently extend two tax incentives for solar energy equipment and ²⁰
establish three new incentives for solar equipment.
Section 201 would extend permanently the 30% value of the investment tax credit for business ²¹
installations of solar equipment. In Section 202, the investment tax credit for solar (30%) and
geothermal (10%) equipment would be made available to public utilities. Under Section 203, the ²²

30% residential energy efficiency investment tax credit would be extended permanently.

Further, the cap would be raised to $3,000/kw for solar electric equipment, $2,000 for solar
heating and cooling equipment, and $500 for fuel cells. Section 204 would make certain solar
equipment eligible for a three-year accelerated depreciation period.
Section 211 would establish a 30% investment tax credit for facilities that manufacture solar
energy equipment.
(For more discussion of the provisions in this bill seeCRS Report RL33578, Energy Tax Policy:
History and Current Issues.)

^(...c^on^tin^ue^d)
⁽^§¹³⁰³⁾^.
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