Omnibus Energy Legislation: H.R. 4 Side-by-side Comparison

Congressional research reportJun 7, 2002

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Omnibus Energy Legislation

in the 107th Congress:

Side-by-side Comparisons

Updated June 7, 2002

(name redacted) and (name redacted), Coordinat

Resources, Science, and Industry Division

Congressional Research Service ˜ The Library of Congress

Omnibus Energy Legislation in the 107th Congress:

Side-by-side Comparisons

Summary

The House and Senate have passed two distinct versions of an omnibus energy

bill (H.R. 4), the first comprehensive energy legislation in ten years. The substantial

differences between the two chambers’ approaches to energy policy remain to be

resolved in conference, which is expected to take place over the summer.

The House version of H.R. 4, the Securing America’s Future Energy Act of

2001, which passed August 2, 2001, includes a key component of the Bush

Administration’s energy strategy: opening the Arctic National Wildlife Refuge

(ANWR) to oil and gas exploration and development. The Senate version, the

Energy Policy Act of 2002, approved on April 25, 2002, leaves ANWR off-limits to

drilling.

The electricity provisions of the Senate-passed H.R. 4 would continue to change

the regulatory requirements for the wholesale electric market. The House-passed

H.R. 4 does not contain electricity provisions. In general, the Senate version would

repeal the Public Utility Holding Company Act (PUHCA) and give the Federal

Energy Regulatory Commission (FERC) and the state utility commissions access to

utility books and records. It would also repeal the mandatory purchase requirement

of the Public Utility Regulatory Policies Act (PURPA) when FERC finds that a

competitive electric market exists.

Automobile and light truck fuel efficiency was the subject of considerable

debate in both houses. In its version of H.R. 4, the House included language that

calls for a reduction of 5 billion gallons in light-duty truck fuel consumption over the

period of model years 2004-2010. The Senate version would charge the National

Highway Traffic Safety Administration (NHTSA) with development of new

Corporate Average Fuel Economy (CAFE) standards using the administrative

procedure that, since FY1996, the agency had been enjoined by Congress from

initiating. However, the Senate bill also would freeze “pickup trucks” at the current

light truck standard of 20.7 mpg, likely shifting the burden for achieving savings to

the passenger automobile portion of the fleet.

Both versions of H.R. 4 include a package of energy tax cuts, primarily tax

incentives (or subsidies) for qualifying energy producers and consumers. In terms

of revenue loss, the House bill cuts energy taxes by $35.4 billion over the ten-year

period from FY2002 through FY2011. In contrast, the Senate bill’s ten-year

projected revenue loss is about $15.2 billion. The House bill provides a greater tax

cut for fossil fuel supply – about $17 billion more over ten years – than the Senate

bill.

Several significant provisions are contained only in the Senate-passed bill,

including programs to address global climate change, loan and price guarantees for

a proposed Alaska natural gas pipeline, a cutoff of oil imports from Iraq, minimum

renewable energy content in motor vehicle fuel, and renewable energy requirements

for electricity providers.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Arctic National Wildlife Refuge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Electricity Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Motor Vehicle Fuel Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Tax Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Alaska Natural Gas Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Nuclear Accident Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Global Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Iraq Oil Import Cutoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Renewable Portfolio Standard (RPS) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Ethanol and Reformulated Gasoline . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Overview of House and Senate Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Regional Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Amendments to the Federal Power Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Amendments to the Public Utility Holding Company Act . . . . . . . . . . . . . 15

Amendments to the Public Utility Regulatory Policies Act of 1978 . . . . . . 22

Consumer Protections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Renewable Energy and Rural Construction Grants . . . . . . . . . . . . . . . . . . . 27

General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Hydroelectric Relicensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Indian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Nuclear Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Price-Anderson Act Reauthorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Growth of Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

NRC Regulatory Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

NRC Personnel Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Oil and Gas Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Natural Gas Pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Alaska Natural Gas Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Operating Pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Pipeline Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Fuels and Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

CAFE Standards, Alternative Fuels, and Advanced Technology . . . . . . . . 64

Additional Fuel Efficiency Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Federal Reformulated Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Energy Efficiency and Assistance to Low Income Consumers . . . . . . . . . . . . . . 82

Low Income Assistance and State Energy Programs . . . . . . . . . . . . . . . . . . 82

Federal Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Industrial Efficiency and Consumer Products . . . . . . . . . . . . . . . . . . . . . . . 87

Housing Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Rural and Remote Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

National Climate Change Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Sense of Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Climate Change Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Science and Technology Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

National Greenhouse Gas Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Energy Research and Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

Fossil Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Fundamental Energy Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Energy, Safety, and Environmental Protection . . . . . . . . . . . . . . . . . . . . . 119

Climate Change Science and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Department of Agriculture Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

International Energy Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . 124

Climate Change Science and Information . . . . . . . . . . . . . . . . . . . . . . . . . 126

Amendments to the Global Change Research Act of 1990 . . . . . . . . 126

National Climate Services Monitoring . . . . . . . . . . . . . . . . . . . . . . . 129

Ocean and Coastal Observing System . . . . . . . . . . . . . . . . . . . . . . . . 131

Climate Change Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

Climate Adaptation and Hazards Prevention . . . . . . . . . . . . . . . . . . . . . . . 134

Assessment and Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Forecasting and Planning Pilot Programs . . . . . . . . . . . . . . . . . . . . . 136

Management of DOE Science and Technology Programs . . . . . . . . . . . . . . . . . 137

Personnel and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

Technology Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Critical Energy Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

Department of the Interior Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

Iraq Oil Import Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Funding Authorizations- Tables 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

Energy Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Fossil Fuels Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Oil/Gas Exploration, Development, and Production . . . . . . . . . . . . . . . . . 174

Refining and Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

Coal Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Electricity Restructuring Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Business Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Residential Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186

Transportation Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

Renewable and Alternative Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Business Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

Residential Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Transportation Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

Index of House Non-Tax Sections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Index of Senate and House Tax Sections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

Related CRS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

List of Tables

Table 1. Major Provisions of House and Senate Energy Bills . . . . . . . . . . . . . . . . 8

Table 2. Authorized Appropriations in Senate bill. . . . . . . . . . . . . . . . . . . . . . . 160

Table 3. Authorized Appropriations in House-passed H.R. 4 . . . . . . . . . . . . . . 168

Omnibus Energy Legislation in the 107th Congress:

Side-by-side Comparisons

Introduction

The House and Senate have passed two distinct versions of an omnibus energy

bill (H.R. 4), the first comprehensive energy legislation in ten years. The substantial

differences between the two chambers’ approaches to energy policy remain to be

resolved in conference, which is expected to take place over the summer.

The House version of H.R. 4, the Securing America’s Future Energy Act of

2001, which passed August 2, 2001, includes a key component of the Bush

Administration’s energy strategy: opening the Arctic National Wildlife Refuge

(ANWR) to oil and gas exploration and development. The Senate version, the

Energy Policy Act of 2002, approved on April 25, 2002, leaves ANWR off-limits to

drilling.

The Senate-passed bill would make substantial changes in wholesale electricity

regulation, while the House bill has no electricity provisions. Other provisions

contained only in the Senate-passed bill include programs to address global climate

change, loan and price guarantees for a proposed Alaska natural gas pipeline, a cutoff

of oil imports from Iraq, and renewable energy requirements for electricity providers.

Both bills include provisions to address motor vehicle fuel economy, nuclear accident

liability, energy taxes, and authorizations of energy research and development

programs (see Table 1).

This report summarizes the major provisions of the House- and Senate-passed

bills, provides a detailed side-by-side comparison, and lists annual funding

authorizations.

Major Provisions

Arctic National Wildlife Refuge. H.R. 4 as passed by the House would

allow for oil and gas leasing in ANWR. It contains provisions that would limit the

footprint of development to 2,000 acres of the Coastal Plain. The Senate bill contains

no ANWR provision. Essentially, the Senate defeated ANWR development by

refusing, 46-54, to invoke cloture on a filibuster of a pro-development amendment,

which was subsequently withdrawn.

The U.S. Geological Survey and the Energy Information Administration have

made estimates of ANWR’s hydrocarbon potential and the range of expectations for

oil production. In short, recent estimates are that at $24 per barrel (in 1996 dollars,

or about $26.50 in 2002 dollars), ANWR has a 95% probability of holding 2.0 billion

CRS-2

recoverable barrels or more and a 5% chance of holding 9.4 billion barrels or more.

The mean value in this range is 5.24 billion recoverable barrels. Under the mean

value, peak production rates would range between 0.55 and 0.775 million barrels per

day (mbd). Were leasing to begin within the next few years, initial ANWR

production might occur around 2010.

Critics of this provision contend that, even if the mean level of production were

achieved, it would be only about 2.75% to 3.8% of current levels of U.S. petroleum

consumption, now in the 20 mbd area. With oil imports approaching 12 mbd, ANWR

would reduce imports by not much more than 6% at its highest likely output under

the mean recovery estimate. Opponents contend that such levels of production would

be inconsequential compared to the impact on an important environmental asset.

Those favoring development note that while the amounts of oil supply are small

relative to these national aggregates, 550,000 to 755,000 barrels per day is a

significant amount of oil. As an energy policy factor, it could have an impact on the

world supply-demand balance. An example often cited is that it is in the range of

U.S. oil imports from Iraq, which the Senate-passed bill would halt for policy

reasons. In 2001, the United States imported 780,000 barrels per day from Iraq.

Development supporters also contend that current technology would allow ANWR

exploration and production with minimal environmental impact.

Electricity Regulation. The electric utility industry has been in the process

of transformation. During the past two decades, technology improvements, changes

in the economics for generating electricity, and new federal laws and regulations have

changed the nature of electric generation and promoted markets for electricity. As

a result, widespread competition is occurring on the wholesale level, and more than

half of the states are moving toward retail competition. The electricity provisions of

the Senate-passed H.R. 4 would continue to change the regulatory requirements for

the wholesale electric market. The House-passed H.R. 4 does not contain electricity

provisions.

In general, the Senate version would repeal the Public Utility Holding Company

Act (PUHCA) and give the Federal Energy Regulatory Commission (FERC) and the

state utility commissions access to utility books and records. It would also repeal the

mandatory purchase requirement of the Public Utility Regulatory Policies Act

(PURPA) when FERC finds that a competitive electric market exists. In addition,

the Senate-passed H.R. 4 would give FERC more review authority over certain

electric utility mergers and increase the value of asset transfers that would trigger

FERC review. It would require FERC to apply cost-of-service rates when marketbased rates are unjust, unreasonable, unduly discriminatory or preferential; require

an electric reliability organization to develop and enforce mandatory reliability

standards; provide access to the transmission system for certain intermittent

generators; create an Office of Consumer Advocacy within the Department of

Justice; and give states the authority to prescribe and enforce laws regarding the

application of the Consumer Protection Subtitle.

Motor Vehicle Fuel Economy. Automobile and light truck fuel efficiency

was the subject of considerable debate in both houses. The 106th Congress had asked

the National Academy of Sciences (NAS) to conduct a study on whether corporate

CRS-3

average fuel economy (CAFE) levels could be adjusted without unacceptable

consequences to vehicle safety, the industry, and consumer choice. This was a

significant departure from previous congressional action, which since FY1996 had

prohibited the spending of appropriated funds for any sort of rulemaking that would

alter CAFE, effectively freezing the standards at 27.5 miles per gallon (mpg) for

passenger automobiles and 20.7 mpg for light trucks. The NAS study, released in

July 2001, did not recommend specific CAFE increases, but did conclude that it was

possible to achieve a more than 40% improvement in light truck and sport utility

vehicle (SUV) fuel economy over a 10-15 year period at costs that would be

recoverable over the lifetime of vehicle ownership.

In its version of H.R. 4, the House included language that calls for a reduction

of 5 billion gallons in light-duty truck fuel consumption over the period of model

years 2004-2010. The Department of Transportation would establish fuel economy

standards sufficient to achieve the required reduction. An amendment to establish

a combined passenger car and truck CAFE standard of 27.5 mpg by MY2007 was

defeated by 160-269.

A more ambitious proposal in the Senate to establish a combined fleetwide

average of 36 mpg by MY2015 never reached a vote. On March 13, 2002, the

Senate voted, 62-38, for an amendment to charge the National Highway Traffic

Safety Administration (NHTSA) with development of new CAFE standards using the

administrative procedure that, since FY1996, the agency had been forbidden by law

from initiating. However, the Senate then approved an amendment, 56-44, to freeze

“pickup trucks” at the current light truck standard of 20.7 mpg, likely shifting at least

some of the burden for achieving savings to the passenger automobile portion of the

fleet.

Tax Incentives. Both versions of H.R. 4 include a package of energy tax cuts,

primarily tax incentives (or subsidies) for qualifying energy producers and

consumers.

For purposes of this report, a tax provision is classified according to whether it

is an incentive for 1) fossil fuel supply (including coal output incentives), 2)

electricity restructuring (which is also an energy supply incentive), 3) reduced fossil

fuel demand through enhanced energy efficiency, and 4) reduced fossil fuel demand

through alternative and renewable fuels output. A miscellaneous or “catch-all”

category at the end of the tax section of this report describes provisions that are not

easily categorized according to this schema. Note that the fossil fuels supply category

is further subdivided according to whether a particular provision affects oil/gas

exploration and production, refining and distribution, or coal output. Similarly, the

energy efficiency and renewable fuels tax incentives are further categorized, as

closely as possible, according to the energy consuming sector that would be primarily

affected, i.e., the business (including commercial and industry), residential, or

transportation sectors.

In terms of revenue loss, the latest estimates show that the House bill cuts

energy taxes by about $23.2 billion over the five-year period from FY2003 through

FY2007, and $35.4 billion over the ten-year period from FY2003 through FY2012.

In contrast, the Senate bill’s five and ten-year revenue losses are estimated at about

CRS-4

$13.3 billion and $15.2 billion, respectively.1 The incentives targeted toward

reducing the demand for fossil energy are, in absolute dollar terms, about the same

in each bill – each bill provides about $8 billion of tax incentives. The House bill is,

however, somewhat more weighted toward energy efficiency than the Senate bill.

The major difference in the two bills is in the incentives for fossil fuel supply,

including electricity restructuring provisions. The House bill provides a greater tax

cut for fossil fuel supply – about $17 billion more over ten years – and has a broader

mix of provisions, including those aimed at drilling, production, refining, and

transportation of fossil fuels, than the Senate bill. Many of the fossil fuel incentives

in the House version of H.R. 4 include capital investment incentives to stimulate

production and distribution of oil and gas, and the production and transmission of

electricity, provisions that are either not present in the Senate version or included at

a much lower level.

An underlying theme of the House-passed bill is that many of the nation’s recent

energy problems have been caused by supply and capacity shortages resulting from

demand stimulated by rapid economic growth and relatively low energy prices. Thus,

while the House bill also includes incentives for reduced demand – conservation and

efficiency – a primary purpose of that legislation appears to be to stimulate energy

supplies. This is particularly true of the outlying years – the period 2007-2012, when

many of the demand disincentives expire. In relative terms, however – i.e., in relation

to the size of the energy industry – the supply incentives are modest (and even more

modest in the Senate bill), although they would constitute a significant expansion

over existing energy tax law (more so for the House bill).

Alaska Natural Gas Pipeline. Alaska’s Prudhoe Bay field, currently a

major source of U.S. crude oil, holds 26 trillion cubic feet (tcf) of natural gas that

cannot be produced for lack of a transport system. Those supplies represent the

equivalent of 1.25 years of current domestic consumption, which amounts to about

22 tcf per year and is expected to grow to 29 tcf in 2010. Other nearby fields hold

more proven gas reserves, and it is likely that, were further exploration to be

undertaken, additional gas would be found on the Alaska North Slope.

Several proposals have been made to bring North Slope gas to market in the

years since the Trans Alaska Pipeline System (TAPS) was authorized for crude oil

transportation. Pursuant to the Alaska Natural Gas Transportation Act, the Alaska

Natural Gas Transportation System (ANGTS) was authorized in 1977. This pipeline

would follow the TAPS route, the Dalton Highway to Fairbanks, AK, and then the

Alaska Highway, crossing the Yukon Territory and British Columbia into Alberta.

This route is a focal point of the Senate bill.

1

The most recent estimates of revenue losses are in: U.S. Congress. Joint Committee on

Taxation. Comparison of Division C of H.R.4, The “Energy Tax Policy Act of 2001,” as

Passed by the House of Representatives and Division H of H.R. 4, The “Energy Tax

Incentives Act of 2002,” as Amended by the Senate. Prepared by the staff of the Joint

Committee on Taxation. May 23, 2002. JCX-43-02.

CRS-5

The other pipeline proposal under current consideration by corporate sponsors

is the Mackenzie Delta route, which would begin at Prudhoe Bay, head east,

transiting offshore under the Beaufort Sea (off ANWR), and come ashore in the

Mackenzie Bay. It would then connect with existing infrastructure, which now ends

at Norman Wells, Northwest Territories. This pipeline would transit a part of Canada

where large gas deposits are thought to exist. It could be a catalyst for their

development. From one perspective, this might be seen as beneficial to North

American gas supply. On the other hand, it could be viewed by producers of

potentially more expensive North Slope gas as unwelcome competition.

Both the Senate and House versions of H.R. 4 address the route issue,

precluding the off-shore proposal and directing U.S. project development toward a

route that initially follows TAPS. The Senate bill provides two financial incentives.

The first offers up to $10 billion in DOE loan guarantees for project financing, of

which the sponsors must put down 20%. Secondly, a tax credit would support Alaska

North Slope gas at an inflation-adjusted price of $3.25 per thousand cubic feet (mcf),

at the point where the gas would enter the currently existing pipeline system in

Alberta.

Nuclear Accident Liability. An extension of the Price-Anderson Act, which

addresses liability for damages to the general public from nuclear incidents, is

included in the Senate-passed H.R. 4 but not in the House-passed bill. However,

after leaving Price-Anderson out of its version of the omnibus energy bill, the House

passed a separate Price-Anderson extension bill (H.R. 2983) that contains provisions

similar to those later adopted in the Senate.

Under the Price-Anderson Act (primarily Section 170 of the Atomic Energy Act

of 1954, 42 U.S.C. 2210), the owners of commercial reactors must assume all

liability for radiological damages awarded to the public by the court system, but their

total liability is limited to the amount provided by private insurance and an industry

self-insurance system. The Price-Anderson Act also authorizes the Department of

Energy (DOE) to indemnify contractors who operate hazardous DOE nuclear

facilities. The limit on DOE contractor liability is the same as for commercial

reactors, except when the limit for commercial reactors drops because of a decline

in the number of covered reactors.

Significant differences between the Price-Anderson provisions in the Senatepassed H.R. 4 and House-passed H.R. 2983 involve how long indemnification

authority should be extended and the formula for determining the commercial reactor

liability limit. In addition, the House bill would raise each reactor’s maximum

annual payment for accident damages from $10 million to $15 million and impose

an inflation adjustment, while the Senate bill would leave the annual payment level

unchanged.

There are also several House provisions not contained in the Senate bill,

including a provision that would authorize the federal government to sue DOE

contractors to recover at least some of the compensation that the government had

paid for any accident caused by intentional DOE contractor management misconduct.

Such cost recovery would be limited to the amount of the contractor’s profit under

the contract involved, and no recovery would be allowed from nonprofit contractors.

CRS-6

Global Climate Change. The House-passed version of H.R. 4 contains only

one directly related climate change provision: authorizing funding for climate change

protection programs within the Environmental Protection Agency (EPA).

In contrast, several titles of H.R. 4 as passed by the Senate contain provisions

to address the global climate change issue. Finding growing evidence that greater

greenhouse gas concentrations are contributing to global climate changes, the Senatepassed bill calls for the United States to demonstrate international leadership in

addressing the issue.

Title X of the Senate version provides for organizational changes within the

federal government to focus on climate change issues. Specifically, a new Office of

National Climate Change Policy (ONCCP) would develop a national response

strategy; a new Interagency Task Force would serve as the primary forum through

which federal agencies assist the new ONCCP in developing and updating the

national strategy; and a new Department of Energy (DOE) Office of Climate Change

Technology would oversee research and development of new technology and provide

analytical support and data.

Further climate change activities are detailed in Titles XI and XIII. Specifically,

Title XI would establish a new national greenhouse database while Title XIII would

focus the research, development, demonstration, and technology deployment

programs within several federal agencies on global climate change science and

mitigation of climate change.

Iraq Oil Import Cutoff. The Senate bill would ban oil imports from Iraq.

Imports could be resumed upon presidential certification that Iraq was in compliance

with U.N. resolutions regarding weapons of mass destruction and the oil-for-food

program, and ceased the practice of supporting the families of suicide bombers.

Additionally, the imports could resume if the President were to find that they were

in the interest of national security.

In 2001, the United States imported 778,000 barrels per day of Iraqi oil, an

amount equal to 6.7% of the nation’s total imports. It is likely that the resulting

import deficit here would be made up by supplies from other exporting nations. To

what extent Iraq would be unable to find customers for this oil, and actually export

less as a result, is hard to determine. But, under this bill, it would lose its largest

single customer. A possible outcome is that Iraq would sell fewer barrels than it

might otherwise export, and because of the difficulty in replacing the United States

as a customer, those barrels might be sold at a discount relative to similar oil from

other exporters.

Renewable Portfolio Standard (RPS). Section 264 of the Senate version

of H.R. 4 proposes that retail electricity suppliers (utilities, except for municipal and

cooperative utilities) be required to obtain a minimum percentage of their power

production from a portfolio of new renewable energy resources. The minimum

energy target or “standard” would start at 1% in 2005, rise at a rate of about 1.2%

every two years, and peak at 10% in 2019.

CRS-7

Eligible resources include solar, wind, ocean, and geothermal energy, most

forms of biomass, landfill gas, and incremental hydropower. A generation offset

from renewables used on site to reduce the measured demand from the grid is also

eligible. The base for calculating the target production level excludes power from

eligible renewables, hydropower, and municipal solid waste. Thus, states with a

large amount of existing biomass, hydro, or other renewable power generation would

have a proportionately lower target for new generation.

Tradable credits are created, which can be purchased in place of power from

other suppliers, to help retailers meet the target at the lowest cost. The credits would

function like the Clean Air Act emission allowance trading system, which has

lowered compliance costs for air pollution regulations. The bill’s credit trading

provision is made flexible by allowing a supplier to “borrow” from expected future

credits to fill a present shortfall or to “carry forward” surplus credits to future years.

A cost cap for the credits is set as the lesser of 1.5 cents/kwh (Section 271) or

200% of the average market value of the credits. The lower the cost cap, the more

it may restrict portfolio diversity and deter generation from solar and other highercost renewable resources. Utilities sought a cost cap near 1 cent/kwh, while

environmental groups sought a cap near 4 to 5 cents/kwh. State experience suggests

that a cost cap is key to compliance cost control and may also allow compliance cost

to flow through as a business cost.

Some see a federal RPS as a way to substitute a more market-oriented

mechanism for the PURPA Section 210 requirement that utilities purchase power

from renewables at an administratively determined “avoided cost.” Ten states,

including Texas, and a few foreign governments, have an RPS that provides a base

of experience for the federal proposal.

Ethanol and Reformulated Gasoline. There are several key fuels

provisions in Title VII of the Senate version. The bill would ban the use of MTBE

(methyl tertiary butyl ether) in gasoline. MTBE is commonly used to meet the

oxygen content standard in federal reformulated gasoline (RFG). However, the

additive has been detected in groundwater in several states.

In addition to a ban on MTBE use, the oxygen requirement would also be

eliminated. However, the current RFG oxygen requirement benefits ethanol, MTBE's

chief competitor. To protect the existing market for ethanol and promote its

expansion, the bill would require the use of renewable fuels in gasoline. Ethanol is

the most widely used renewable fuel, and would be used to meet the majority of the

requirement. Effectively, the bill would nearly triple U.S. ethanol consumption by

2012. In addition, renewable fuel blenders would be shielded from defective product

liability.

Overview of House and Senate Versions

Although both versions of H.R. 4 are omnibus energy bills, a number of the

most significant provisions are included only in one or the other. In many cases, this

reflects fundamentally different views on energy policy between the two chambers.

Table 1 briefly summarizes the major aspects of the two bills.

CRS-8

Table 1. Major Provisions of House and Senate Energy Bills

Provision

Senate

House

Electricity restructuring

Changes regulatory

requirements to

emphasize market rates.

No provision.

Arctic National Wildlife

Refuge (ANWR)

No provision.

Opens ANWR to oil and

gas leasing.

Corporate Average Fuel

Economy (CAFE)

Requires new CAFE

standards, except for

pickup trucks.

Requires a reduction in

fuel consumption by

new light trucks.

Energy taxes

Provides $15.2 billion in

energy tax incentives

over a ten-year period.

Provides $35.4 billion in

energy tax incentives

over a ten-year period,

more than half for fossil

fuel supply.

Global climate change

Establishes federal

offices to focus on

global climate change,

authorizes R&D.

No specific provisions.

Appliance efficiency

standards

Requires new standards

for central air

conditioners, heat

pumps, and appliance

standby power.

Sets standard for

appliance standby

power.

Nuclear accident

liability (Price-Anderson

Act)

Extends Price-Anderson

coverage for DOE

facilities.

No provisions. (Separate

Price-Anderson

extension, H.R. 2983,

passed by House.)

Alaska natural gas

pipeline

Provides loan and price

guarantees for Alaska

natural gas pipeline and

forbids proposed

Beaufort Sea route.

No loan or price

guarantees, but forbids

Beaufort Sea route.

Iraqi oil cutoff

Forbids direct or indirect

importation of Iraqi oil

until certain conditions

are met.

No provisions.

CRS-9

Renewable energy

content in motor vehicle

fuel

Requires motor vehicle

fuel sold in the United

States to contain a

minimum volume of

ethanol or other

renewable fuel.

No provisions.

Renewable Portfolio

Standard

Requires electric utilities

to provide minimum

percentages of power

from renewable sources.

No provisions.

Energy Program

Authorizations,

FY2002-FY2006

Authorizes $53.8 billion

(see table 2).

Authorizes $34.9 billion

(see table 3).

Organization of Report

The remainder of this report provides a side-by-side comparison of the

provisions of H.R. 4 as passed by the House and Senate. The non-tax sections are

organized in the numerical order of the Senate-passed version, followed by a

numerical index of the non-tax sections in the House-passed version. Tax provisions

are organized by topic, followed by a numerical index of the tax sections in both

versions of H.R. 4.

Funding authorizations for the two bills are shown in separate tables for the

House and Senate versions, which are cross referenced to each other. Further analysis

and background are available in the CRS products cited at the end of the report.

The following analysts in the CRS Resources, Science, and Industry Division

contributed to this report:

!

!

!

!

!

!

!

!

!

!

!

!

!

(name redacted), electric utilities;

(name redacted), energy security;

Carl Behrens, hydropower;

(name redacted), Native Americanergy,

en general authorizations;

(name redacted), nuclear energy;

(name redacted), federal energy leasing, coal;

Larry Kumins, oil and gas;

Dan Morgan, science programs;

(name redacted), climate change;

Paul Rothberg, pipeline safety;

(name redacted), conservati

on and renewable energy;

Steve Stitt, public power;

Brent Yacobucci, alternative fuels, climate change.

CRS-10

Short Title2

Provision

Current Law

Senate

House

Short titles and table of

contents

No provision.

Sec. 1. This Act may be cited

as the “Energy Policy Act of

2002.” Sec. 2. Table of

Contents.

Sec. 100. This Act may be

cited as the “Securing

America’s Future Energy Act

of 2001,” or the “SAFE Act

of 2001” (section includes

Table of Contents). Sec. 100.

Division A may be cited as

the “Energy Advancement

and Conservation Act of

2001.” Sec. 6001. Division F

may be cited as the “Energy

Security Act.”

Comments

Regional Coordination

Provision

Current Law

Senate

House

Policy on regional

coordination

No current law.

Sec.101. The policy of the

federal government is to

encourage states to

coordinate, on a regional

basis, policies to maximize

the reliability of energy

services, including electric

transmission and generation,

gas transportation, storage,

and distribution, and fuel

conservation.

No similar provision.

2

Comments

Provisions are organized by Senate section numbers. To find a specific House section by its number, see the index at the end of

these tables.

CRS-11

Federal support for

regional coordination

No current law.

Sec. 102. The Department of

Energy is directed to provide

technical assistance to states

and regional organizations to

assist with activities defined

in Sec. 101.

No provision.

Electricity

Amendments to the Federal Power Act

Provision

Current Law

Senate

House

Definitions

The Federal Power Act

defines an electric utility as

“any person or State agency

(including any municipality)

which sells electric energy;

such term includes the

Tennessee Valley Authority,

but does not include any

Federal power marketing

agency” (16 U.S.C. 796).

Sec. 201. The Federal Power

Act is amended to add federal

power marketing agencies to

the definition of an electric

utility. A definition of a

transmitting utility is added to

the Federal Power Act. A

transmitting utility includes

state and municipally owned

or operated transmission

facilities involved in interstate

commerce or transmission of

electricity at wholesale.

No provision.

Comments

CRS-12

Provision

Current Law

Senate

House

Comments

Electric utility mergers

Under Section 203(a) of the

Federal Power Act, FERC

review for transfer of assets

applies for transactions

valued at $50,000 or more

(16 U.S.C. 824b).

Sec. 202. The Federal Power

Act is amended to give FERC

review authority for transfer

of assets valued in excess of

$10 million. FERC must give

state public utility

commissions and governors

reasonable notice in writing.

FERC must establish rules to

comply with this section.

No provision.

This provision significantly

increases the value of the

asset transfer that would

trigger FERC review. The

section has prompted

questions about the potential

for market power abuse

because of the increase in

asset value before FERC

merger review authority is

triggered. However, once it is

triggered, FERC is given

additional jurisdiction to

protect consumer interests.

Market-based rates

Section 205 of the Federal

Power Act requires just and

reasonable rates to be charged

for transmission or sale of

electric energy (16 U.S.C.

824d).

Sec. 203. FERC may approve

market-based rates when the

seller and its markets meet

certain criteria. When the

Commission determines the

market-based rate is unjust,

unreasonable, unduly

discriminatory or preferential,

FERC must determine a just

and reasonable rate.

No provision.

Provision could limit FERC’s

options to respond to rates

found to be unjust,

unreasonable, unduly

discriminatory or preferential

rates.

Refund effective date

Refunds for rates that FERC

finds to be unjust,

unreasonable, unduly

discriminatory or preferential

begin a minimum of 60 days

after a complaint is filed (16

U.S.C. 824e(b)).

Sec. 204. Section 206(b) of

the Federal Power Act is

amended to allow the

effective date for refunds to

begin at the time of the filing

of a complaint with FERC but

not later than 5 months after

filing of a complaint.

No provision.

Currently, refunds begin a

minimum of 60 days after the

filing of the complaint. This

section would allow refunds

to be retroactive to the date

complaint is filed with FERC.

CRS-13

Provision

Current Law

Senate

House

Comments

Open access

transmission by certain

utilities

The Federal Power Act

(Section 201(f)) does not

apply to federal Power

Marketing Administrations,

state entities or rural electric

cooperatives (16 U.S.C. 824).

Sec. 205. FERC is authorized,

by rule or order, to require

unregulated transmitting

utilities (Power Marketing

Administrations, state entities,

and rural electric

cooperatives) to charge rates

comparable to what they

charge themselves, and also

require that the terms and

conditions of the sales are

comparable to those required

of other utilities. Exemptions

are established for utilities

selling less than 4 million

megawatt-hours of electricity

per year and for utilities that

own or operate transmission

facilities that are not

necessary to facilitate a

nationwide interconnected

transmission system.

No provision.

Expands FERC’s

transmission authority in

ordering open access to

include Power Marketing

Administrations, state entities

and rural electric

cooperatives.

Electric reliability

standards

No current law.

Sec. 206. FERC-approved

electric reliability

organizations will develop

and enforce reliability

standards for the bulk-power

system. Standards are

enforceable by the electric

reliability organization and

FERC. The provision does

not apply to Alaska or

Hawaii.

No provision.

Would give an electric

reliability organization

(currently the North

American Electric Reliability

Council (NERC)) the primary

authority to develop

reliability standards.

CRS-14

Provision

Current Law

Senate

House

Market transparency

rules

No current law.

Sec. 207. Within 180 days

after enactment, FERC is

required to issue rules to

establish an electronic system

that provides information

about the availability and

price of wholesale electric

energy and transmission

services. Commercial or

financial information that

FERC determines to be

privileged, confidential, or

otherwise sensitive is exempt

from disclosure.

No provision.

Access to transmission

by intermittent

generators

No specific law.

Sec. 208. FERC must require

transmitting utilities to

provide service to solar and

wind generators at rates that

do not unduly prejudice or

disadvantage the generators

for scheduling deviations.

FERC may exempt a

transmitting utility from the

requirements of this provision

if the solar and wind

generators are likely to have

an adverse impact on

reliability.

No provision.

Comments

Transmitting utilities would

be able to charge higher rates

to solar and wind generators

if the intermittent nature of

their electricity generation is

likely to have an adverse

impact on the reliability of the

transmission system.

CRS-15

Provision

Current Law

Senate

House

Enforcement

Electric utilities are subject to

the criminal penalty section

of the Federal Power Act (16

U.S.C. 825o(c)).

Sec. 209. The exemptions

from the criminal penalty

section of the Federal Power

Act (16 U.S.C. 825o(c)) for

certain activities including

wheeling and sales by

Exempt Wholesale

Generators are repealed. The

civil penalty section of the

Federal Power Act (16 U.S.C.

825o-l) is extended to include

sections of this Act.

No provision.

Comments

Amendments to the Public Utility Holding Company Act

Provision

Current Law

Senate

House

Short title

The Public Utility Holding

Company Act of 1935 (15

U.S.C. 79 et seq).

Sec. 221. This subtitle may be

cited as the “Public Utility

Holding Company Act of

2002.”

No provision.

Comments

CRS-16

Provision

Current Law

Senate

House

Comments

Definitions

15 U.S.C. 79b

Sec. 222. The following terms

are defined: affiliate;

associate company;

Commission; company;

electric utility company; gas

utility company; holding

company; holding company

system; jurisdictional rates;

natural gas company; person;

public utility; public utility

company; state commission;

subsidiary company, and

voting security.

No provision.

The definitions of the terms

affiliate, electric utility

company, gas utility

company, holding company,

holding company system,

subsidiary company, and

voting security are changed

from current law. The terms

jurisdictional rates, natural

gas company, and public

utility are not included in the

Public Utility Holding

Company Act of 1935.

CRS-17

Provision

Current Law

Senate

House

Comments

Repeal of the Public

Utility Holding

Company Act of 1935

(PUHCA)

In general, the Public Utility

Holding Company Act of

1935 regulates the structure

of holding companies by

prohibiting all holding

companies that are more than

twice removed from their

operating subsidiaries,

federally regulates holding

companies of investor-owned

utilities, and provides for

Securities and Exchange

Commission (SEC) regulation

of mergers and diversification

proposals. Registered

holding companies and

subsidiaries are required to

have SEC approval prior to

issuing securities; all loans

and intercompany financial

transactions are regulated by

the SEC; and a holding

company can be exempt from

PUHCA if its business

operations and those of its

subsidiaries occur within 1

state or within contiguous

states (15 U.S.C. 79 et seq.).

Sec. 223. PUHCA is repealed.

No provision.

Currently under PUHCA, a

holding company can acquire

securities or utility assets only

if the SEC finds that such a

purchase will improve the

economic efficiency and

service of an integrated public

utility system. It has been

argued that reform to allow

diversification would improve

the risk profile of electric

utilities in much the same

way as in other businesses:

The risk of any one

investment is diluted by the

risk associated with all

investments. However,

concerns have been expressed

that PUHCA repeal could

exacerbate market power

abuses in an industry where

vigorous competition may not

yet exist. State regulators

have expressed concerns that

increased diversification

could lead to such abuses as

cross-subsidization: a

regulated company

subsidizing an unregulated

affiliate.

CRS-18

Provision

Current Law

Senate

House

Federal access to books

and records

Registered holding companies

and subsidiary companies are

required to preserve accounts,

cost-accounting procedures,

correspondence, memoranda,

papers, and books that FERC

deems necessary or

appropriate in the public

interest or for protection of

investors and consumers (15

U.S.C. 79o).

Sec. 224. Federal access is

provided to the books and

records of holding companies

and their affiliates. Federal

officials must maintain the

confidentiality of such books

and records.

No provision.

State access to books

and records

Under the Federal Power Act,

state commissions may

examine the books, accounts,

memoranda, contracts, and

records of a jurisdictional

electric utility company, an

exempt wholesale generator

that sells to such electric

utility, and any electric utility

company or holding company

that is an associate company

or affiliate of an exempt

wholesale generator (16

U.S.C. 824).

Sec. 225. A jurisdictional

state commission may make a

written request to a holding

company or any associate

company for access to

specific books and records,

which must be kept

confidential. Response to

such requests is mandatory.

Compliance with this section

is enforceable in U.S. District

Court.

No provision.

Exemption authority

No current law.

Sec. 226. FERC is directed to

promulgate rules to exempt

qualifying facilities, exempt

wholesale generators, and

foreign utility companies

from the requirements of

Section 224.

No provision.

Comments

CRS-19

Provision

Current Law

Senate

House

Affiliate transactions

The Federal Power Act

requires that jurisdictional

rates are just and reasonable

and prohibits crosssubsidization (16 U.S.C. 791a

et seq.).

Sec. 227. FERC retains the

authority to prevent crosssubsidization and to assure

that jurisdictional rates are

just and reasonable.

No provision.

Applicability

No specific provision.

Sec. 228. Except as

specifically noted, this

subtitle does not apply to the

United States government, a

state or any political

subdivision of a state, or a

foreign governmental

authority operating outside

the United States.

No provision.

Effect on other

Regulations

No specific provision.

Sec. 229. FERC or a state

commission is not precluded

from exercising its

jurisdiction under otherwise

applicable laws to protect

utility customers.

No provision.

Enforcement

16 U.S.C. 825e-825p

Sec. 230. FERC has authority

to enforce this provision

under sections 306-317 of the

Federal Power Act.

No provision.

Comments

CRS-20

Provision

Current Law

Senate

House

Savings provisions

Not applicable.

Sec. 231. Persons may

continue to engage in legal

activities in which they have

been engaged or are

authorized to engage in on the

effective date of the subtitle.

The subtitle does not limit the

authority of the Federal

Energy Regulatory

Commission under the

Federal Power Act or the

Natural Gas Act.

No provision.

Implementation

Not applicable.

Sec. 232 Not later than 18

months after enactment,

FERC will promulgate

regulations necessary to

implement this subtitle and

submit to Congress

recommendations for

technical or conforming

amendments to federal law

that might be necessary to

carry out this subtitle.

No provision.

Transfer of resources

The Securities and Exchange

Commission maintains books

and records and regulates

security transactions (15

U.S.C. 79 e a t seq.).

Sec. 233. The Securities and

Exchange Commission will

transfer all applicable books

and records to FERC.

No provision.

Comments

No time frame is provided.

CRS-21

Provision

Current Law

Senate

House

Interagency review of

competition in the

wholesale and retail

markets for electric

energy

No current law.

Sec. 234. An interagency task

force is created to perform a

study and analysis of electric

competition within U.S.

wholesale and retail markets.

The task force will submit a

report not later than 1 year

after the effective date of this

Act.

No provision.

GAO study on

implementation

No current law.

Sec. 235. The General

Accounting Office is directed

to study the effectiveness of

the federal government and

the states in: 1) preventing

anti-competitive practices;

and 2) promoting competition

and efficient energy markets

that benefit consumers. This

report must be submitted to

Congress no later than 24

months after the effective

date of this Act.

No provision.

Effective date

No applicable law.

Sec. 236. Eighteen months

after enactment, this subtitle

will take effect.

No provision.

Authorization of

appropriations

No applicable law.

Sec. 237. Necessary funds to

carry out this subtitle are

authorized to be appropriated.

No provision.

Comments

CRS-22

Provision

Current Law

Senate

House

Conforming

amendments to the

Federal Power Act

16 U.S.C. 791a et seq.

Sec. 238. The Federal Power

Act is amended to reflect the

changes to the Public Utility

Holding Company Act of

1935.

No provision.

Comments

Amendments to the Public Utility Regulatory Policies Act of 1978

Provision

Current Law

Senate

House

Comments

Real-time pricing

standard

No current law.

Sec. 241. States must consider

a standard for real-time

pricing of electricity for retail

customers. Real-time pricing

on the retail level would

reflect fluctuations of

wholesale rates. Also

contains provision on timeof-use metering. In states

allowing retail competition,

distribution company must

provide the same time-of-use

metering and communication

service to all of its retail

customers.

No provision.

Installation of real-time

metering and communications

technology would be

necessary to fully implement

retail real-time and time-ofuse pricing.

CRS-23

Provision

Current Law

Senate

House

Adoption of additional

standards

No current law.

Sec. 242. States are required

to consider implementation of

technical and pricing

standards for distributed

generation interconnection to

the local distribution system,

a standard for each electric

utility to develop a plan to

develop a diverse fuel mix

and technology mix for

generating electricity, and a

standard to increase the

efficiency of fossil fuel

generators.

No provision.

Technical assistance

No current law.

Sec. 243. The Secretary of

Energy is authorized to

provide technical assistance

to the states to help develop

the standards under Section

242.

No provision.

Comments

CRS-24

Provision

Current Law

Senate

House

Cogeneration and

small power

production purchase

and sale requirements

Electric utilities are required

to purchase electricity

generated by qualifying

facilities at the utilities’

avoided cost (16 U.S.C.

824a-3).

Sec. 244. Mandatory purchase

requirements under §210 of

the Public Utility Regulatory

Policies Act of 1978

(PURPA) will not apply to

new contracts after the date of

enactment if FERC finds that

a competitive electric market

exists. FERC may enforce

recovery of “stranded costs”

incurred by utilities because

of PURPA-mandated

cogeneration and small power

purchases. Ownership

limitations under PURPA are

repealed.

No provision.

Net metering for

renewable energy and

fuel cells

No current law.

Sec. 245. All utilities are

subject to net metering

requirements. Residential

system size limits are 500

kilowatts. State public utility

commissions have authority

to determine whether

mandatory net metering will

be implemented within their

states.

No provision.

Comments

Provision would maintain

current state authority to

determine whether to

implement this section’s net

metering standard. Currently,

34 states require utilities to

provide net metering to some

or all classes of customers.

CRS-25

Consumer Protections

Provision

Current Law

Senate

H.R. 4

Information disclosure

No provision.

Sec. 251. The Federal Trade

Commission must issue rules

requiring electric utilities to

provide electric consumers

information on the cost and

type of service being offered.

No provision.

Consumer privacy

No current law.

Sec. 252. The Federal Trade

Commission is directed to

issue rules prohibiting an

electric utility from sharing

its customers’ individual

information without prior

written approval by a

consumer.

No provision.

Office of Consumer

Advocacy

No current law.

Sec. 253. An Office of

Consumer Advocacy is

established within the

Department of Justice. The

Office may represent the

interest of energy customers

on matters concerning rates or

service at FERC hearings, at

U.S. court proceedings, and

hearings and proceedings of

other federal regulatory

agencies and commissions.

No provision.

Comments

CRS-26

Provision

Current Law

Senate

H.R. 4

Comments

Unfair trade practices

No current law.

Sec. 254. The Federal Trade

Commission is required to

issue rules prohibiting

slamming and cramming.

No provision.

Slamming occurs when an

electric utility switches a

customer’s electric provider

without the consumer’s

knowledge. Cramming occurs

when an electric utility adds

additional services and

charges to a customer’s

account without the

permission of the customer.

Applicable procedures

Administrative Procedure Act

(5 U.S.C. 533).

Sec. 255. The Federal Trade

Commission will adhere to

the notice and comment

rulemaking procedures under

the Administrative Procedure

Act (5 U.S.C. Sec. 533) for

rules issued under this

subtitle.

No provision.

Federal Trade

Commission

enforcement

Federal Trade Commission

Act (15 U.S.C. 57a).

Sec. 256. Violations of rules

under this subtitle will be

treated as violations of the

Federal Trade Commission

Act (15 U.S.C. Sec. 57a).

No provision.

State authority

No applicable law.

Sec. 257. States are given

authority to prescribe and

enforce laws, rules, or

procedures regarding the

practices of this subtitle.

No provision.

Gives states the right to

codify and enforce laws,

rules, and procedures that

may be in direct conflict with

the Consumer Protection

subtitle.

CRS-27

Provision

Current Law

Senate

H.R. 4

Application of subtitle

No applicable law.

Sec. 258. This subtitle applies

only to electric utilities whose

retail sales exceed 500

million kilowatt-hours per

calendar year.

No provision.

Definitions

16 U.S.C. 2602

Sec. 259. Defines aggregate

consumer information and

consumer information.

Electric consumer, electric

utility, and state regulatory

authority have the same

meaning as such terms under

PURPA.

No provision.

Comments

Renewable Energy and Rural Construction Grants

Provision

Current Law

Senate

House

Comments

Renewable energy

production incentive

EPAct Sec. 1212 provides a

1.5 cent/kwh incentive for

power produced from wind

and biomass by state and

local governments and nonprofit electrical cooperatives.

Funded by appropriations, it

was created to parallel the

renewable energy production

tax credit for businesses

(Title XIX).

Sec. 261. Eligibility is

extended to certain public

utilities. Qualifying

resources are expanded to

include landfill gas,

incremental hydro, and ocean

energy. Funding for hydro

may not exceed 30% of the

total.

Sec. 602. Qualifying

resources are expanded to

include landfill gas.

Authorizes “such sums,” and

there is no funding limit for

any resource.

The Senate bill extends the

eligibility to a broader range

of additonal sources.

CRS-28

Provision

Current Law

Senate

House

Comments

Assessment of

renewable energy

resources

No existing requirement.

Sec. 262. DOE is required to

report annually on resource

potential, including solar,

wind, biomass, ocean,

geothermal, and hydro.

Sec. 601. DOE is directed to

publish an annual report on

resource potential.

The provisions are nearly

identical except the Senate

version includes ocean energy,

while the House version does

not.

Federal purchase

requirement

No existing requirement.

Sec. 263. Federal agencies are

required to purchase power

produced from renewables,

starting at 3% in FY2003, and

rising to 7.5% in FY2010.

No provision.

Requires that a certain

percentage of the total

electricity purchased by the

federal government be

generated from renewable

energy sources.

Energy Sun labeling

program

No existing program.

No provision.

Sec. 141A. A governmentindustry partnership is

established to create an

“Energy Sun” labeling

program that promotes

renewable and alternative

energy products.

The features of this new

program would parallel the

features of the existing Energy

Star program for energyefficient products (see Sec.

926 of the Senate version and

Sec. 141 of the House

version).

CRS-29

Provision

Current Law

Senate

House

Comments

Renewable portfolio

standard (RPS)

No existing requirement.

Sec. 264. A renewable energy

production target is set for

retail suppliers, starting at 1%

in 2005 and rising to 10% by

2019. Tradable credits are

created to help compliance.

Eligible renewable resources

include solar, wind,

geothermal, biomass

(including municipal solid

waste), landfill gas, a

generation offset (on-site

renewables generation that

reduces demand), and

incremental hydropower.

The baseline estimate

excludes eligible renewables,

municipal solid waste, and

hydropower. Special credits

apply to incremental

hydropower, generation

offsets, production on Native

American lands, and co-firing

with conventional resources.

A non-compliance penalty is

provided.

No provision.

Several states have enacted an

RPS. The Senate bill allows

states to have a stronger

requirement than the federal

standard. (Sec. 271 of the

Senate bill redefines a 3

cents/kwh credit in Sec. 264 to

be 1.5 cents/kwh.)

CRS-30

Provision

Current Law

Senate

House

Comments

Renewable energy on

federal land

No existing requirement.

Sec. 265. The Secretary of the

Interior is directed to create a

pilot program to develop

wind and solar energy on

federal lands.

Sec. 6102. The Secretary of

the Interior is required to

inventory the potential to

develop solar, wind,

geothermal, and coal

resources on federal lands.

Also, Sec. 6105 directs,

where practicable, the

Department of the Interior

and the Department of

Agriculture to use energy

efficient technologies in

vehicles and in public and

administrative buildings

associated with management

of the National Park System

and other public lands.

The Senate bill requires

implementation while the

House bill requires a study.

Energy conservation in

the Interior

Department

No existing requirement.

No provision.

Sec. 6601. The Department of

the Interior is required to

study and report on

opportunities to conserve

energy in its facilities and to

reduce conventional energy

use by substituting use of

alternative energy sources,

including the use of solar

power and fuel cells.

CRS-31

Provision

Current Law

Senate

House

ANWR revenue for

renewable energy

No provision.

No provision.

Sec. 6512. Half of the

adjusted revenues from bonus

payments from oil and natural

gas leases in the Arctic

National Wildlife Refuge

(ANWR) is directed to a new

Renewable Energy

Technology Investment Fund

in the U.S. Treasury

Department. The Fund shall

be used to finance research

and studies on renewable

energy and alternative fuels.

Comments

CRS-32

Provision

Current Law

Senate

House

Geothermal energy

Geothermal energy

production on federal lands is

charged a royalty of 10%15% (Geothermal Steam Act

Sec. 5).

No provision.

Sec. 6301-6307. The

maximum royalty for existing

geothermal leases is reduced

from 15% to 8%. Further,

the royalty is eliminated over

a five-year period for new

qualified leases and new

qualified expansions of 10%

or more. Low temperature

(less than 195 degrees

Fahrenheit) resources are

exempted from royalties, but

are instead required to pay a

fee ranging from $100 to

$1,000. Prohibits geothermal

leasing on Forest Service

lands if a regional forester

determines that the lands

cannot be adequately

protected. The Interior

Department is directed to

determine whether pending

lease applications require

competitive bidding. All

public lands controlled by

military departments are

opened to leasing, subject to

Interior Department

regulations. Further, the

Department is required to

review and report on the

status of all leasing moratoria

and withdrawls from

moratoria.

Comments

CRS-33

Provision

Current Law

Senate

House

Reimbursement for

costs of NEPA

analyses,

documentation, and

studies for geothermal

leasing

No provision.

No provision.

Sec. 6308. If adequate

appropriated funds are not

available to conduct the

necessary reviews for a

geothermal lease under the

National Environmental

Policy Act (NEPA) in a

timely manner, the Secretary

of the Interior may reimburse

the lessee or applicant with

royalty credits for conducting

the NEPA work.

Carpet waste as

alternative energy

source

No existing requirement.

No provision.

Sec. 801. DOE is authorized

funding to support a single

grant to develop the

feasibility of burning postconsumer carpet in cement

kilns as an alternative energy

source.

Comments

General Provisions

Provision

Current Law

Senate

House

Change RPS price cap

from 3 cents to 1.5

cents

No provision.

Sec. 271. The 3 cent/kwh

price cap for tradable credits

in Sec. 264, which establishes

a renewable portfolio

standard (RPS), shall be

considered 1.5 cents/kwh.

No provision.

Comments

CRS-34

Provision

Current Law

Senate

House

Comments

Bonneville Power

Administration Bonds

Current BPA borrowing

authority is $3.75 billion (16

U.S.C 838k, P.L. 98-50).

Sec. 272. Bonneville Power

Administration borrowing

authority is increased by $1.3

billion to provide

transmission system

improvements.

No similar provision

In the FY2003 Congressional

Budget Request, BPA

requested an increase of $700

million in borrowing

authority.

CRS-35

Hydroelectric Relicensing

Provision

Current Law

Senate

House

Comments

Alternative conditions

and fishways

No provision.

Sec. 301 (a) and (b).

Agencies imposing conditions

or prescribing fishway

construction on hydropower

license applicants under

Section 4(e) and Section 18

of the Federal Power Act

must consider alternative

measures proposed by the

applicant, and accept those

alternative measures if the

alternative condition

“provides for the adequate

protection and utilization of

the reservation,” or if the

alternative fishway “will be

no less protective of the fish

resources than the fishway

initially prescribed,” and

would either cost less or

result in more power

production.

No provision in this section

prohibits other interested

parties from proposing

alternative conditions.

Sec. 401 (a) and (b).

Agencies imposing conditions

or prescribing fishway

construction on hydropower

license applicants under

Section 4(e) and Section 18

of the Federal Power Act

must consider alternative

measures proposed by the

applicant, and accept those

alternative measures if the

alternative condition

“provides no less protection

for the reservation,” or if the

alternative fishway “will be

no less effective than the

fishway initially prescribed,”

and would either cost less or

result in more power

production.

Senate language substituting

“fish resources” for “fishway”

is aimed at protecting “all fish

resources, not just those fish

species that are harvested

either commercially already

or with sport fishery,”

according to Senator Smith.

CRS-36

Provision

Current Law

Senate

House

Comments

Time of filing

application

License applicants must file

24 months prior to expiration

of old license.

Sec. 301 (c). License

applicants must file 36

months prior to expiration for

licenses that expire in 2008

and thereafter.

No similar provision.

Aimed at reducing the

number of annual interim

licenses that “do not provide

certainty for consumers or the

utility and result in delays in

environmental mitigation and

enhancement,” according to

Senator Smith.

No similar provision.

Sec. 402. The Federal Energy

Regulatory Commission must

collect data on the time and

costs involved in the hydro

licensing process.

No provision.

Sec. 6401. Within 12 months

of enactment, the Secretary of

the Interior will submit a

study that describes existing

capacity at hydroelectric

facilities under Interior

Department jurisdiction. In

addition, the study will

identify costs of producing

additional hydroelectric

power from each facility as

well as describe the impact

that increased hydroelectric

production would have on

irrigation, fish, wildlife,

Indian tribes, river health,

water quality, navigation,

recreation, fishing, and flood

control.

Data collection

procedures

Study of increasing

power production at

existing hydroelectric

facilities

No provision.

CRS-37

Provision

Current Law

Senate

House

Comments

Installation of

powerformer at Folsom

Power Plant,

California

No provision.

No provision.

Sec. 6402. The Bureau of

Reclamation may borrow

from the United States

Treasury the cost of a

powerformer to be installed at

the Bureau of Reclamation’s

Folsom Power Plant in

California. The Secretary of

the Interior is also directed to

seek contributions from

power users.

A powerformer would replace

both the generator and

transformer. This new

technology increases the

overall efficiency of plant

operations and generates

electricity at voltage levels

necessary for electricity to be

placed directly on the

transmission grid.

Study of increased

operational efficiencies

at hydroelectric

projects

No provision.

No provision.

Sec. 6403. The Secretary of

the Interior is to conduct a

study to determine whether

operational methods and

water scheduling techniques

could be modified at

hydroelectric facilities with

capacity greater than 50

megawatts to maximize

energy production. Within 18

months of enactment, the

Secretary will submit a report

on the Department’s findings.

CRS-38

Provision

Current Law

Senate

House

Electricity savings at

Bureau of Reclamation

pumping facilities

No provision.

No provision.

Sec. 6404. With the consent

of irrigation customers, the

Bureau of Reclamation will

shift its water pumping

operations to periods of offpeak electricity demand. This

section does not affect any

existing obligations to

provide electric power, water,

or other benefits from Bureau

of Reclamation facilities.

Comments

Indian Energy

Provision

Current Law

Senate

House

Buy Indian Act

No energy provision.

No similar provision

Sec. 6602. Amends “Buy

Indian Act” to include energy

products.

Comprehensive Indian

energy program

No provision.

Sec. 401. A comprehensive

Indian energy program at the

DOE is established to assist

tribes in meeting their energy

needs and expanding

opportunities to develop

energy resources on tribal

lands. A grant program and a

loan guarantee program for

Indian energy development

are established. Federal

agencies may give a

preference to purchasing

Indian energy.

No similar provision

Comments

CRS-39

Provision

Current Law

Senate

House

Office of Indian Energy

Policy and Programs

No provision.

Secs. 402-403. Within the

DOE, an Office of Indian

Energy Policy and Programs

is created to administer the

programs from the previous

section, 401. Appropriations

are authorized.

No similar provision

Siting energy facilities

on tribal lands

No provision.

Sec. 404. Indian tribes may

directly lease land and rightsof-way for energy facilities,

without case-by-case review

by the Secretary of the

Interior, if the tribe develops,

and the Secretary approves,

tribal regulations, and the

term of the lease does not

exceed 30 years.

No similar provision

Indian mineral

development act review

No provision.

Sec. 405.The Secretary of the

Interior is required to

undertake a review and make

recommendations regarding

tribal opportunities under the

Indian Mineral Development

Act.

No similar provision

Renewable energy

study

No provision.

Sec. 406. The Secretary of

Energy is required to report

on energy consumption and

renewable energy

development potential on

Indian land, including

identification of barriers to

the development of renewable

energy on tribal land.

No similar provision

Comments

CRS-40

Provision

Current Law

Senate

House

Federal Power

Marketing

Administrations

None

Sec. 407. The Bonneville

Power Administration and

Western Area Power

Administration are authorized

to assist in developing

distribution systems that

provide power to Indian tribes

using the federal transmission

system.

No similar provision

Feasibility study of

combined wind and

hydropower

demonstration project

None.

Sec. 408. DOE, in

conjunction with the Army

and the Interior Department,

is to study the feasibility of

obtaining a marketable, firm

electricity source from wind

energy generated on tribal

lands connected with

hydropower generated by the

U.S. Army Corp of Engineers

at the Missouri River

powerplants.

No similar provision

Comments

CRS-41

Nuclear Power

Price-Anderson Act Reauthorization

Provision

Current Law

Senate

House

Comments

Short Title

The Price-Anderson Act,

dealing with liability for

nuclear accidents, generally

consists of Sec. 170 of the

Atomic Energy Act of 1954

(AEA, 42 U.S.C. 2210). Key

terms are defined at 42 U.S.C.

2014.

Sec. 501. This subtitle

(sections 501-509) may be

cited as the “Price-Anderson

Amendments Act of 2002.”

No provision.

The House-passed version of

H.R. 4 does not contain PriceAnderson provisions; they

were included in a separate

bill (H.R. 2983) passed by the

House on November 27,

2001, described below: H.R.

2983 Sec. 1. This Act may be

cited as the “Price-Anderson

Reauthorization Act of 2001.”

Extension of NRC

indemnification

authority for

commercial nuclear

power plants and other

licensees

Nuclear Regulatory

Commission (NRC) authority

to provide indemnification

under Price-Anderson to new

reactors and other licensees

expires August 1, 2002 (AEA

Sec. 170 c.).

Secs. 502(a), 502(c). NRC

indemnification authority is

extended through August 1,

2012.

No provision.

H.R. 2983 Secs. 2(a), 2(c).

NRC indemnification

authority is extended through

August 1, 2017. (Without the

extension, existing reactors

would continue to be covered

by Price-Anderson, but new

reactors would not.) Sec. 14.

Before providing PriceAnderson coverage to a new

reactor, NRC must consult

with the Office of Homeland

Security about whether the

reactor’s design and location

provide adequate public

protection in case of a

terrorist attack.

CRS-42

Provision

Current Law

Senate

House

Comments

Extension of DOE

indemnification

authority for nuclear

contractors

DOE authority to indemnify

nuclear contractors against

radiological damage claims

by members of the public

expires August 1, 2002 (AEA

Sec. 170 d.).

Sec. 502(b). DOE’s

indemnification authority is

extended indefinitely.

No provision.

H.R. 2983 Sec. 2(b). DOE

indemnification authority is

extended through August 1,

2017. (Without an extension,

new DOE contracts would not

include Price-Anderson

indemnification, although

existing contracts would still

be covered.)

Nuclear incident

liability limits

The liability limit for public

damages resulting from a

nuclear incident by a DOE

contractor is about $9.5

billion. The contractor

liability limit is based on the

limit for commercial nuclear

reactors (AEA Sec. 170 d.).

The commercial reactor

liability limit is equal to the

maximum available liability

insurance, plus maximum

contributions of $63 million

per reactor (adjusted for

inflation since 1988), plus a

5% surcharge, currently

totaling about $9.5 billion.

Compensation contributions

are paid at a rate of no more

than $10 million per reactor

per year (AEA Sec. 170 b.).

Sec. 503. The DOE contractor

liability limit is raised to $10

billion, subject to an inflation

adjustment under Section

506.

No provision.

H.R. 2983, Sec. 4. Same as

Senate bill. Sec. 3. Maximum

total contributions by each

commercial reactor following

an accident are raised to $94

million (to be adjusted for

inflation every five years after

enactment). Maximum

annual contributions per

reactor are raised from $10

million to $15 million, to be

adjusted for inflation. Total

available reactor incident

compensation increases to

about $10 billion. The Senate

bill leaves the current reactor

incident compensation

formula unchanged.

CRS-43

Provision

Current Law

Senate

House

Comments

Incidents outside the

United States

The liability limit for nuclear

incidents outside the United

States is $100 million (AEA

Sec. 170 d., e.).

Sec. 504. The limit is raised

to $500 million.

No provision.

H.R. 2983, Sec. 5. Same as

Senate bill. Sec. 10. The

federal government may not

accept liability for nuclear

incidents in nations found to

support terrorism.

Reports on PriceAnderson extension or

modification

No future reports on this

subject required.

Sec. 505. DOE and the

Nuclear Regulatory

Commission (NRC) shall

submit reports to Congress by

August 1, 2008, to

recommend continuation or

modification of the PriceAnderson Act.

No provision.

H.R. 2983, Sec. 6. Same

reports as the Senate bill, but

the deadline is August 1,

2013.

Inflation adjustment

for liability limits

NRC every five years must

adjust for inflation, using the

aggregate percentage change

in the Consumer Price Index,

the maximum compensation

contribution that each reactor

must make following a

nuclear incident (AEA Sec.

170 t.). If the NRC inflation

adjustment raises the reactor

liability limit above the

existing DOE contractor

limit, the contractor limit is

raised to the same level (AEA

Sec. 170 d.).

Sec. 506. In addition to the

NRC inflation adjustment,

DOE must make a similar

adjustment of the $10 billion

nuclear contractor accident

liability limit every five years.

No provision.

H.R. 2983, Sec. 7. Similar to

Senate bill. (The House and

Senate bills would eliminate

the existing link between

commercial reactor and DOE

contractor liability limits,

requiring a separate inflation

adjustment for DOE

contractors.)

CRS-44

Provision

Current Law

Senate

House

Comments

Civil penalties for DOE

nuclear contractors

Specific nonprofit DOE

contractors who violate

nuclear safety regulations are

exempt from civil penalties.

DOE may automatically remit

nuclear safety fines paid by

any nonprofit educational

institution (AEA Sec. 234A.).

Sec. 507. The exemption for

specific nonprofit DOE

contractors is replaced by

provisions limiting nuclear

safety penalties on any

nonprofit contractor to the

amount of the management

fee it has earned under a DOE

contract within any one-year

period. DOE authority to

remit fines paid by nonprofit

educational institutions is

repealed.

No provision.

H.R. 2983, Sec. 16. Similar

to Senate bill. Sec. 13.

Indemnified nuclear

contractors at DOE nonweapons sites must follow

industrial safety rules

equivalent to those of the

Occupational Safety and

Health Administration and

pay civil penalties for

violations. Sec. 15. If DOE

has to pay compensation for

an accident caused by the

intentional misconduct of a

for-profit contractor, the

Attorney General may file a

lawsuit to recover such

compensation from the

contractor, up to the amount

of profit earned on the

contract.

Treatment of modular

reactors

All commercial nuclear

reactors with electric

generating capacity of 100

megawatts or more are

subject to Price-Anderson’s

maximum payments for

accident damages and

requirements for insurance

coverage (AEA Sec. 170 b.).

Sec. 508. Two or more

reactors at a single site, each

with electric generating

capacity of 100-300

megawatts and totaling no

more than 1,300 megawatts,

shall be treated as a single

reactor in assessing accident

compensation contributions

and insurance requirements.

No provision.

H.R. 2983, Sec. 8. Same as

Senate bill. (This provision

would allow a “modular”

nuclear plant made up of

several small reactors to

purchase insurance coverage

as if the plant consisted of a

single reactor. The entire

modular plant also would

only be liable for the accident

compensation payments of a

single reactor.)

CRS-45

Provision

Current Law

Senate

House

Comments

Effective date

Not applicable.

Sec. 509. The increased

nuclear liability limits in this

subsection shall apply only to

accidents that occur after the

date of enactment.

No provision.

H.R. 2983, Sec. 9. Same as

Senate bill.

Comments

Miscellaneous Provisions

Provision

Current Law

Senate

House

Government uranium

stockpile sales

DOE may sell its uranium

stockpiles under certain

conditions (42 U.S.C. 2297h10).

Sec. 511. With certain

exceptions, DOE uranium

sales are restricted to 3

million pounds per year from

2003-2009, rising to 10

million pounds per year after

2012.

Sec. 309. The federal

government is prohibited

from selling or transferring

any uranium through March

23, 2009, except for

emergencies and certain prior

commitments. Sales of

government-owned uranium

after that date are limited to

three million pounds per year.

Thorium cleanup

reimbursement

DOE is authorized to

reimburse up to $140 million

in government-related

cleanup costs to the owner of

a thorium processing site (42

U.S.C. 2296a).

Sec. 512. The thorium

reimbursement authorization

is raised to $365 million.

No provision.

Senate language is nearly

identical to thorium

reimbursement provisions in

H.R. 3343, passed by the

House December 18, 2001.

CRS-46

Provision

Current Law

Senate

House

Comments

Fast Flux Test Facility

No comparable provision.

Sec. 513. DOE is prohibited

from restarting the Fast Flux

Test Facility (FFTF), a test

reactor at Hanford,

Washington, if the proposed

missions can be conducted at

other facilities that are

already operating.

No provision.

Sec. 2344(c) of the House bill

prohibits nuclear energy

operation and maintenance

funds from being used for

FFTF, although restart is not

specifically mentioned. DOE

announced December 19,

2001, that FFTF would be

permanently closed.

Nuclear Power 2010

Program

No specific provision.

Sec. 514. DOE shall conduct

a cost-shared program with

industry to “allow for the

construction and startup of

new nuclear plants in the

United States by 2010.”

No specific provision.

DOE is currently conducting

a Nuclear Power 2010

program within the Nuclear

Energy Technologies

program.

Spent Nuclear Fuel

Research

DOE shall conduct a research

program on alternative means

and technologies for disposal

of high-level radioactive

waste (42 U.S.C. 10202).

Sec. 515. A DOE Office of

Spent Nuclear Fuel Research

is established to research,

develop, and demonstrate

technologies for treatment,

recycling, and disposal of

spent nuclear fuel and highlevel radioactive waste. The

technologies should be based

on reactors and accelerators

and minimize nuclear

weapons proliferation

concerns.

Sec. 2321. DOE’s Office of

Nuclear Energy, Science, and

Technology shall conduct a

research and development

program on advanced

technologies for the

reprocessing of spent nuclear

fuel. The technologies should

be resistant to nuclear

weapons proliferation and

support alternative spent fuel

disposal strategies.

Spent fuel recycling or

reprocessing involves the

extraction of plutonium and

uranium from spent nuclear

fuel for use in new fuel.

Supporters contend that it

could extend domestic energy

supplies and reduce the

hazard posed by nuclear

waste, while opponents are

concerned that the extracted

plutonium could be used for

weapons. DOE currently

plans to use reprocessing

technology to treat spent fuel

from the closed Experimental

Breeder Reactor-II in Idaho.

CRS-47

Provision

Current Law

Senate

House

Reactor

Decommissioning Pilot

Program

No provision.

Sec. 516. DOE shall

decontaminate and

decommission the sodiumcooled test reactor in

northwest Arkansas.

No provision.

Comments

Growth of Nuclear Energy

Provision

Current Law

Senate

House

Comments

Commercial reactor

license period

For a commercial nuclear

reactor that receives a

combined construction and

operating license from the

Nuclear Regulatory

Commission (NRC), the

initial 40-year license period

could begin when NRC grants

a combined license for a

reactor, before construction

has started and years before

the start of operation (AEA

Section 103 c.).

Sec. 521. A reactor’s

operating period under a

combined license shall be no

shorter than if separate

construction and operating

licenses had been issued.

Sec. 301. The 40-year license

period for a combined license

will not begin until NRC

determines that the completed

reactor is ready to start

operating.

Both provisions would

provide the longest potential

operating period for new

reactors under a 40-year

combined license (which can

be renewed).

CRS-48

NRC Regulatory Reform

Provision

Current Law

Senate

House

Commercial reactor

antitrust reviews

NRC must provide copies of

commercial reactor license

applications to the Attorney

General, who must review

them for antitrust problems

within 180 days. If problems

are found, the Attorney

General may become a party

to the licensing proceedings

(42 U.S.C. 2135).

Sec. 531. After receiving

notice from NRC, the

Attorney General shall review

commercial license

applications for antitrust

problems within 90 days.

Other antitrust review

procedures shall not apply to

new commercial reactor

license applications.

No provision.

Protection of reactor

decommissioning funds

No specific provision.

Sec. 532. Funds set aside for

decontamination and

decommissioning of

commercial nuclear reactors

shall not be used to satisfy

creditors for unrelated

purposes. Similar protection

is provided to insurance

payments for nuclear

incidents under the PriceAnderson Act.

No provision.

Comments

CRS-49

NRC Personnel Crisis

Provision

Current Law

Senate

House

Elimination of pension

offset for critical NRC

personnel

No provision.

Sec. 541. If NRC has a

critical need for the skills of a

retired employee, NRC can

hire the retiree as a contractor

and exempt him or her from

the annuity reductions that

would otherwise apply.

No provision.

NRC training program

No specific provision.

Sec. 542. Funding is

authorized for NRC to carry

out a training and fellowship

program to develop critical

nuclear safety skills.

No provision.

NRC cost recovery

from other government

agencies

Federal agencies must pay

fees to NRC for certain

licensed activities (AEA Sec.

161 w.).

No provision.

Sec. 302. NRC may impose

licensing and other cost-based

fees on all NRC-licensed

activities conducted by other

federal agencies.

Extension of limitation

on depleted uranium

funds

An account in the Treasury

must be preserved through

FY2002 to pay for treatment

of depleted uranium

hexafluoride at former DOE

plants in Ohio and Kentucky

(P.L. 105-204).

No provision.

Sec. 303. The depleted

uranium treatment account

must be preserved for that

purpose through FY2005.

Comments

CRS-50

Provision

Current Law

Senate

House

Transcripts of NRC

meetings

No provision.

No provision.

Sec. 304. If a quorum of

NRC Commissioners meets to

discuss official business, a

transcript of non-confidential

discussions at the meeting

must be made available to the

public.

Paducah enrichment

plant decommissioning

plan

No provision.

No provision.

Sec. 307. The Secretary of

Energy must submit a plan to

Congress for decontaminating

and decommissioning surplus

facilities and DOE material

storage areas at the Paducah,

Kentucky, uranium

enrichment plant.

Feasibility of locating

commercial reactors at

DOE sites

No provision.

No provision.

Sec. 308. The Secretary of

Energy must determine the

feasibility of building

commercial nuclear power

plants at existing DOE sites.

Comments

CRS-51

Oil and Gas Production

Provision

Current Law

Senate

House

Comments

Permanent authority to

operate the Strategic

Petroleum Reserve

The SPR requires periodic

reauthorization.

Sec. 601. Authorization of

the Strategic Petroleum

Reserve is made permanent,

subject to appropriations.

This eliminates the need for

periodic reauthorization.

No comparable provision.

This provision would avoid

periods such as was

experienced in 2000, when

authorization expired at the

end of March and Congress

was unable to reach

agreement on reauthorization

until November.

Federal oil and gas

management

The Mineral Leasing Act of

1920, as amended, provides

the authority for onshore

federal lands to be leased for

a specified period of time for

oil and gas development.

Sec. 602. The Secretary of the

Interior shall ensure timely

action on applications for oil

and gas leases and drilling

permits on federal lands.

Sec. 6221-6225. The

Secretaries of Agriculture and

the Interior must conduct a

study of “impediments” to oil

and gas leasing on federal

lands. The Secretary of the

Interior must eliminate

unwarranted denials and stays

of lease issuances.

Federal oil and gas

acreage limitations

Current acreage limitations,

royalty policies and

reclamation requirements for

oil and gas are spelled out in

the Mineral Leasing Act of

1920 (30 U.S.C. 181).

Secs. 603. Lease acreage

limitations are altered.

No provision.

Orphaned wells on

federal land

Mineral Leasing Act of 1920.

Sec. 604. The Secretary of the

Interior, in cooperation with

the Secretary of Agriculture,

shall establish a program that

ensures the remediation of

orphaned wells on federal

land.

No provision.

CRS-52

Provision

Current Law

Senate

House

Federal technical

assistance for

abandoned oil and gas

wells

Mineral Leasing Act of 1920.

Sec. 605. The Secretary of

Energy shall establish a

technical assistance program

to help states quantify and

mitigate risks from

abandoned wells.

No provision.

Offshore oil and gas

suspensions

Outer Continental Shelf

Lands Act (43 U.S.C. 1334).

Sec. 606. The Minerals

Management Service (MMS)

can suspend offshore oil and

gas operations to reevaluate

geological data if the

suspension would prevent

waste from unnecessary well

drilling.

Sec. 6231. The Secretary of

the Interior may allow

suspension of operations

under any OCS oil and gas

lease to allow time for

reinterpretation of exploratory

data under salt sheets.

Offshore oil and gas

royalties

The Deepwater Royalty

Relief Act of 1996 (DWRRA)

established the depths at

which a specified amount of

production is exempt from

royalties for leases held

between 1996-2000. New

rules modified the DWRRA

for leases held after

November 2000.

No provision.

Sec. 6201-6204. The Royalty

Relief Extension Act of 2001

extends the original

Deepwater Royalty Relief Act

of 1995 for two years.

Coalbed methane study

Coalbed methane R&D is

carried out by the DOE and

funded through the Interior

and Related Agencies

Appropriation Bill.

Sec. 607. The Secretary of the

Interior and others shall study

the effects of coalbed

methane production on water

resources.

No provision.

Comments

CRS-53

Provision

Current Law

Senate

House

Oil and gas production

royalty and tax policy

evaluation

Mineral Leasing Act of 1920.

Sec. 608. The Secretary of

Energy and others must

evaluate the effect of oil and

gas royalty and tax policies

on oil and gas production.

No provision.

Strategic Petroleum

Reserve (SPR)

The SPR was initially

authorized in 1975 (P.L. 94163).

Sec. 609. The President must

fill the SPR to its current

capacity “as soon as

practicable” by the “most

practicable and cost-effective

means.”

No comparable provision.

Hydraulic fracturing

No provision.

Sec. 610. EPA is required to

conduct a study of the effects

of hydraulic fracturing of

hydrocarbon-bearing geologic

formations on underground

sources of drinking water and

determine whether regulation

is necessary. If regulations

are deemed unnecessary,

states will be relieved from

further obligation to regulate

hydraulic fracturing.

No provision.

Safe Drinking Water

grant and preservation

of oil and gas resource

data

No provision.

Secs. 611-612. Funding is

authorized for a grant to

Alabama under the Safe

Drinking Water Act, and the

U.S. Geological Survey may

preserve and provide public

access to oil and gas resource

data.

No provision.

Comments

CRS-54

Provision

Current Law

Senate

House

Comments

Federal oil and gas

royalties-in-kind and

other provisions

Royalty -in-kind authority is

provided by the Outer

Continental Shelf Lands Act

of 1953, as amended (43

U.S.C 1331, et. seq.).

No provisions.

Secs. 6232-6235. When the

federal government sells any

physical quantities of oil and

gas received as royalty-inkind payments, it must sell it

for market value and must

receive revenues greater than

or equal to those received

under a comparable cash

payment royalty. States and

provinces around the Great

Lakes are encouraged to

prohibit or cease offshore oil

and gas drilling in the Great

Lakes.

The Great Lakes issue

became one of state versus

federal control over oil and

gas development, particularly

in Lake Michigan. In

February 2002 the Michigan

legislature approved a bill to

ban oil and gas drilling in the

Great Lakes. Michigan

Governor Engler did not

oppose the measure.

Sec. 613. The Secretary of the

Interior shall report to

Congress on plans to resolve

conflicts between

development of coal and

coalbed methane in the

Powder River Basin.

No provision.

The Bureau of Land

Management can issue

development leases for two

different resources on the

same tract of land. The

potential for conflict arises

from overlapping coal and

gas leases in the Powder

River Basin.

A provision in the FY2002

Energy and Water

Development bill (P.L.10766) bans oil and gas drilling

in the Great Lakes.

Coal leasing in the

Powder River Basin

Coal is currently being leased

on federal lands under the

Mineral Leasing Act of 1920

(30 U.S.C.181).

CRS-55

Natural Gas Pipelines

Alaska Natural Gas Pipeline

Provision

Current Law

Senate

House

Short title and

purposes

The Natural Gas Act (NGA)

gives FERC authority to

certificate interstate pipelines.

The Alaska Natural Gas

Transportation Act

(ANGTA), 15 U.S.C. 719,

creates a process where a

project in the Alaska Natural

Gas Transportation System

may be recommended and

approved.

Secs. 701 and 703. This

subtitle may be called the

“Alaska Natural Gas Pipeline

Act of 2002.” Its purpose is

to expedite the completion of

one or more pipelines to

deliver Alaskan natural gas to

the contiguous 48 states.

No provision.

Findings

No provision.

Sec. 702. North Slope gas

supply is declared to be in the

national interest.

No provision.

Expedited certification

ANGTA, NGA both address

this matter.

Sec. 704. FERC must issue a

certificate for a proposed

Alaskan gas pipeline based on

Natural Gas Act criteria,

notwithstanding the Alaska

Natural Gas Transportation

Act. A certificate must be

issued within 60 days of a

final environmental impact

statement.

No provision.

Comments

FERC has issued a certificate

for the Alaska Gas Transport

System

CRS-56

Provision

Current Law

Senate

House

Comments

Prohibition on certain

pipeline route

No provision.

Sec. 704(d). No federal

approval may be granted for

any natural gas pipeline

transiting submerged lands or

the shoreline of the Beaufort

Sea, nor for any gas pipeline

crossing the U.S.-Canadian

border north of 68 degrees

north latitude.

Sec. 701. Same.

This prohibition would block

proposed natural gas pipeline

routes from the Alaska North

Slope that could open the

U.S. market to Arctic

Canadian natural gas

resources.

Environmental reviews

The National Environmental

Policy Act (NEPA) calls for

environmental review and

analysis.

Sec. 705. FERC is designated

as the lead agency for

environmental reviews of an

Alaska gas pipeline. FERC

must issue a draft

environmental impact

statement (EIS) within 12

months after determining the

pipeline certificate

application is complete. The

final EIS is to be issued 6

months after the draft

statement.

Sec. 6503(c). Parameters are

set for NEPA reviews of oil

and gas leases on the ANWR

Coastal Plain.

Pipeline expansion

No provision.

Sec. 706. FERC has authority

to order pipeline expansion,

contingent upon approved

tariffs and firm shipper

agreement.

No provision.

CRS-57

Provision

Current Law

Senate

House

Federal coordinator

No provision.

Sec. 707. A new executive

branch office, the Federal

Coordinator for Alaska

Natural Gas Transport

Projects, is established to

coordinate the expeditious

discharge of all federal

agency activities and

compliance with this act.

No provision.

Judicial review

No specific provision.

Sec. 708. Legal challenge to

agency actions under this bill

are directed to the U.S. Court

of Appeals for the D.C.

Circuit.

Sec. 6508. Issues relating to

Coastal Plain referred to U.S.

Court of Appeals, D.C.

Circuit

State jurisdiction over

in-state gas delivery

No specific provision.

Sec. 709. Intrastate gas

deliveries will not be

regulated by FERC.

No provision.

Loan guarantee

No provision.

Sec. 710. Loan guarantees of

up to $10 billion are provided

for an Alaska gas transport

system certified by FERC.

Project sponsors are required

to “put 20% down”; other

terms and conditions are to be

worked out by the Secretary

of Energy.

No provision.

Comments

Treats sales of gas from this

pipeline as intrastate

transactions.

CRS-58

Provision

Current Law

Senate

House

Study of alternative

means of construction

No provision.

Sec. 711. If no commercial

pipeline application is filed

within 18 months of

enactment, DOE is instructed

to conduct a study of having

the project undertaken by a

government corporation.

No provision.

Clarification of Alaska

Natural Gas Transport

Act (ANGTA) and

authority to amend

terms and conditions to

meet current project

requirements

No provision.

Sec. 712. Nothing in this bill

affects ANGTA. DOE has

authority to amend existing

transport plan to bring it up to

date.

No provision.

Definitions

No provision.

Sec. 713. This section defines

the concept of Alaska natural

gas as applying to the North

Slope, including the

Continental Shelf. It also

defines the pipeline system as

that part within the United

States, and subject to FERC

jurisdiction.

No provision.

Comments

CRS-59

Provision

Current Law

Senate

House

Sense of the Senate

No provision.

Sec. 714. It is the sense of the

Senate that commercialization of Alaskan gas is

economically important to

both the United States and

Canada. It is urged that North

American steel be used in

pipeline construction, and that

the project sponsors negotiate

a project labor agreement to

expedite construction.

No provision.

Pipeline construction

training program

No provision.

Sec. 715. The Secretary of

Labor is to report to Congress

within 6 months on the

training requirements needed

for Alaska residents to

participate in pipeline

construction. The Secretary

is tasked with establishing

such program within 1 year of

the report.

No provision.

Comments

CRS-60

Operating Pipelines

Provision

Current Law

Senate

House

Comments

Historic Preservation

Act and pipeline

environmental review

No provision.

Sec. 721 The Chairman of

the Council on Environmental

Quality (CEQ), in

coordination with the

Chairman of FERC, is to

form an interagency task

force that will develop an

interagency memorandum of

understanding to expedite

pipeline projects. The task

force is to consist of the lead

agency chairs, and the heads

of BLM, the Fish and

Wildlife Service, Corps of

Engineers, Forest Service,

EPA, and the Advisory

Council on Historic

Preservation.

Sec. 6104. The Secretary of

Energy, in coordination with

FERC, must form a task force

of the relevant agencies to

develop an interagency

agreement to expedite the

approval of pipeline projects.

Among the perceived

bottlenecks in the approval of

new gas pipeline projects that

the Bush Administration

seeks to streamline is the

environmental review

process.

Sec. 702. Pipelines are

exempted from the National

Register of Historic Places

under the National Historic

Preservation Act (NHPA)

unless they have been

abandoned or their owners

consent to such inclusion.

At issue regarding historic

preservation is whether

pipeline companies needing

FERC approval to expand or

renovate facilities should be

compelled by FERC to fund

and perform historical

documentation and

preservation.

Pipeline Safety

Provision

Current Law

Senate bill

House bill

Comments

Short Title;

Amendment of Title 49

U.S.C.

Title 49 of the U.S. Code

includes federal law outlining

many of the legal authorities

for federal activities,

including regulation and

enforcement, that influence

the safety and security of

pipeline infrastructure.

Sec. 741. This subtitle

(sections 741-783) may be

cited as the “Pipeline Safety

Improvement Act of 2002.”

No provision.

Secs. 741-783 include the

previously passed Senate

pipeline safety bill (S. 235)

(with minor changes) and

several provisions pertaining

to pipeline security and

related issues.

CRS-61

Provision

Current Law

Senate bill

House bill

Comments

Pipeline Safety

Improvement Act of

2002

Pipeline safety provisions are

located 49 U.S.C. 601.

Secs. 742- 765. To address

concerns regarding human

errors causing pipeline

releases, operators are

required to prepare a plan that

would be designed to enhance

the qualifications of pipeline

personnel and to reduce the

likelihood of accidents. The

plan is to provide for training

and periodic reexamination of

pipeline personnel. The

Secretary of Transportation is

authorized to certify that

those plans are sufficient to

ensure continuation of safety

operations (Sec. 763). To

enhance the safety of pipeline

operations, companies are

required to implement

integrity management plans

for interstate pipelines that

traverse environmentally

sensitive areas and high

density population areas.

Each operator's plan would

need to be based on risk

analysis and include periodic

assessment of the integrity of

the pipeline no less than every

five years unless certain

conditions are met (Sec. 764).

No provisions.

Selected pipeline safety

provisions are described.

CRS-62

Provision

Current Law

Senate bill

House bill

Pipeline safety

education, state

oversight, and

authorizations

49 U.S.C. 601

Secs. 766- 778. To reduce

damage to infrastructure

caused by third parties, each

owner or operator of a

pipeline facility is required to

carry out a continuing

program to educate the public

regarding pipeline safety,

including providing

information on the use of

one-call notification systems

prior to excavation (Sec.

766). Operators must

maintain liaison with various

state or local entities and

provide information, upon

their request, on the integrity

management program

implemented at a facility and

other aspects of facility

operations, including the

location of pipelines (Sec.

768). For FY2003 through

FY2005, the Office of

Pipeline Safety program is

authorized at specified levels

of funding, with amounts set

aside to carry out pipeline

integrity program and

research and development

activities (Sec. 772).

No provision.

Comments

CRS-63

Provision

Current Law

Senate bill

House bill

New England pipeline

transmission and

storage study

No provision.

Sec. 779. FERC, in

conjunction with DOE, is to

conduct a study of the

pipeline transmission system

and storage facilities in New

England, and determine its

adequacy to meet current and

projected consumer and

power generation needs, as

well as seasonal demands.

The study should identify

potential transport bottlenecks

and deficiencies in the

environmental review and

permitting process. A report

to the Senate Energy and

Natural Resources Committee

and relevant House

committee is required within

120 days of enactment.

No provision.

Pipeline securitysensitive information

and criminal penalties

49 U.S.C. 601

Secs. 780- 783. To enhance

pipeline security, if the

Department of Transportation

obtains security-sensitive

information regarding

pipelines, such information

shall be released only with

adequate protection to

specified parties (Sec. 781),

and criminal penalties are

provided for damaging or

destroying pipeline facilities

(Sec. 783).

No provision.

Comments

CRS-64

Fuels and Vehicles

CAFE Standards, Alternative Fuels, and Advanced Technology

Provision

Current Law

Senate

House

Comments

Increased fuel economy

standards

The Energy Policy and

Conservation Act (P.L. 94163), enacted in 1975,

established procedures

whereby the National

Highway Traffic Safety

Administration (NHTSA)

follows a rulemaking process

to establish model year CAFE

standards for passenger

automobiles and light-duty

trucks. Fuel economy of

passenger automobiles is

currently 27.5 mpg; lightduty truck CAFE is 20.7 mpg.

Sec. 801. The Secretary of

Transportation must issue not

later than 15 months after

enactment “new regulations

setting forth increased fuel

economy standards”

reflecting “maximum feasible

fuel economy levels”

consistent with factors set out

in the original CAFE

legislation (P.L. 94-163).

(However, Sec. 811 freezes

“pickup truck” CAFE at 20.7

mpg.) An environmental

assessment is required of the

effects of the new standards,

and $2 million is authorized

to carry out this section.

Sec. 201. The Secretary of

Transportation must establish

fuel economy standards

for light-duty trucks

manufactured in model years

2004-2010 that will result in a

gasoline consumption savings

of at least 5 billion gallons of

gasoline from what this

portion of the fleet would

have consumed had the

standard for this segment of

the vehicle fleet remained at

20.7 miles-per-gallon.

Some argue that the savings

called for in the House bill

could be achieved with an

increase in light-truck CAFE

of 1-2 mpg. The Senate

provision freezing the CAFE

standard for “pickup trucks,”

which are undefined, will

narrow the scope of the

Senate language. Concurrent

with congressional

consideration of energy

legislation, the

Administration, on Feb. 7,

2002, issued a request for

comments on CAFE

standards for passenger cars

and light trucks for some or

all of model years 2005-2010,

taking into account the

National Academy of

Sciences (NAS) study on fuel

economy released in 2001,

and other issues.

CRS-65

Provision

Current Law

Senate

House

Comments

Expedited procedures

for congressional

increase in fuel

economy standards.

No current law.

Sec. 802. In the event that the

Secretary of Transportation

does not comply with Sec.

801 within 15 months of

enactment, Congress may

establish CAFE standards

under expedited procedures.

No comparable provision.

Sec. 802 does not specify a

specific CAFE standard that

Congress may enact under

expedited procedures.

Considerations to be

taken into account in

setting maximum

feasible average fuel

economy standards

Current law requires

Secretary of Transportation to

consider “technological

feasibility, economic

practicability, the effect of

other motor vehicle standards

of the Government on fuel

economy, and the need of the

United States to conserve

energy.” [49 Sec.

32902(2)(f)]

Sec. 803. In addition to

considerations in current law,

the Secretary of

Transportation must consider:

(1) CAFE effects on reducing

U.S. dependence on imported

oil; (2) motor vehicle and

passenger safety; (3) air

quality; (4) the relative

competitiveness of

manufacturers; (5) levels of

employment in the United

States; (6) the cost and lead

time for new technologies; (7)

potential benefits of advanced

technology vehicles; (8)

impact of manufacturers’

near-term compliance costs

on their ability to develop

advanced technologies (9) the

January 2002 CAFE report of

the National Research

Council.

No comparable provision.

The Senate legislation

considerably lengthens the

number of conditions to be

analyzed and weighed by the

National Highway Traffic

Safety Administration in

setting standards. The

implications, if any, for the

rule-making process are

unclear. It is possible that

these new considerations, if

retained in the final bill, will

be legally challenged and

might delay the rulemaking

process as amended by the

legislation.

CRS-66

Provision

Current Law

Senate

House

Comments

Consideration of

prescribing different

average fuel economy

standards for nonpassenger automobiles

No current law.

No comparable provision.

Sec. 202. The Secretary of

Transportation will consider

the merits and benefits of

basing fuel economy

standards for light-duty

vehicles upon some measure

of vehicle weight. The

Secretary should consider any

recommendations made by

the National Academy of

Sciences in its fuel economy

study. If a weight-based

system is adopted, an

individual manufacturer could

trade credits among the

different models produced by

that manufacturer.

The original distinction

between cars and light trucks

in the Energy Policy and

Conservation Act (P.L. 94163) assumed that vehicles

dedicated to passenger travel

would be subject to tougher

CAFE standards, whereas

light-duty trucks intended for

hauling and other commerce

would be required to meet an

appropriately less stringent

standard. In recent years,

it has become apparent that

vehicles such as sport utility

vehicles (SUVs) – which

otherwise meet the definition

of “light duty trucks” – are

being used as passenger

vehicles but are not held to

the CAFE standard of

passenger automobiles.

Extension of maximum

fuel economy increase

for alternative vehicles

Manufacturers earn a “CAFE

credit” for producing dualfueled vehicles. The

maximum increase in a

manufacturer’s CAFE owing

to inclusion of dual-fueled

vehicles in its fleet is limited

to 1.2 mpg for model years

1993-2004, and 0.9 mpg for

model years 2005-2008.

Sec. 804. Maximum increase

in a manufacturer’s CAFE

owing to inclusion of dualfueled vehicles in its fleet is

limited to 1.2 mpg for model

years 1993-2008, and 0.9

mpg for model years 20092013.

Sec. 203. An existing

incentive that provides

CAFE credits to

manufacturers of dual-fueled

vehicles is extended through

model year 2008.

The fuel economy study by

the National Academy of

Sciences (NAS)

recommended

elimination of the credit,

contending that these vehicles

are rarely operated on

anything but conventional

gasoline, while the credit

permits the manufacturer to

sell less-efficient vehicles.

CRS-67

Provision

Current Law

Senate

House

Study of feasibility and

effects of reducing use

of fuel for automobiles

Not in current law.

No comparable provision.

Sec. 207. The National

Academy of Science is to

undertake a study on the

feasibility and effects of

reducing automobile fuel use

– “by a significant

percentage” – by model year

2010. The study is to

particularly look at the

promise of fuel cell

technology and alternatives to

the present structure of the

CAFE standards.

Procurement of

alternative fueled and

hybrid light-duty

trucks for federal fleets

Sec. 303 of the Energy Policy

Act of 1992 (P.L. 102-486)

required that, by FY1999,

75% of vehicle purchases for

a federal fleet of 20 or more

light-duty motor vehicles be

alternative-fueled vehicles.

Exceptions were made for

emergency, military and law

enforcement vehicles, among

other uses.

Sec. 805. Five percent of

light duty trucks procured for

federal fleets in FY2005FY2006 must be alternativefueled or hybrid vehicles.

This requirement increases to

10% after FY2006.

Sec. 205. In addition to the

75% of federal motor vehicles

purchased each year that must

be alternative-fueled under

Sec. 303(b)(1) of P.L. 102486, 5% of federal fleet

vehicles purchased during

FY2004-FY2005, and 10% in

FY2006 and thereafter, must

be alternative-fuel or hybrid

vehicles.

Comments

The targets specified in

existing law have not been

met.

CRS-68

Provision

Current Law

Senate

House

Comments

Use of alternative fuels

Energy Policy Act of 1992

[42 U.S.C. 13220]. Of the

vehicles purchased by federal

and state agencies, and

alternative fuel providers in a

given year, a percentage must

be alternative fuel vehicles.

Sec. 806. Dual-fueled vehicle

fleets in executive branch

agencies must use alternative

fuels 100% of the time by

Jan. 1, 2009, but the Secretary

of Transportation is

authorized to waive the

requirement to 50% of the

time by Jan. 1, 2009, and

75% by Jan. 1, 2011. No

waivers may be extended

beyond the end of 2012.

Additional waiver authority is

provided if the alternative

fuel “is not reasonably

available” in a particular

geographic area.

Sec. 206. Federal fleets must

reduce the purchase of

“petroleum-based

nonalternative fuels” during

FY2004-FY2008 by some

percentage from a baseline, as

designated by the Secretary of

Energy.

Under current law, there is no

specific requirement to use

alternative fuels in these

vehicles.

Sec. 807. Appropriations of

$225 million to DOE are

authorized for FY2003 to

expand R&D for advanced

technologies to improve the

cleanliness of automobiles.

Emphasis is placed on

(1) fuel cells, including high

temperature membranes for

fuel cells and fuel cell

auxiliary power systems; (2)

hydrogen storage; (3)

advanced vehicle engine and

emission control systems; (4)

advanced batteries and power

electronics for hybrid

vehicles; (5) advanced fuels;

and (6) advanced materials.

No comparable provision.

Hybrid electric and

fuel cell vehicles

CRS-69

Provision

Current Law

Senate

House

Diesel fueled vehicles

No current law.

Sec. 808. DOE is required to

accelerate R&D for diesel

combustion and after

treatment technologies with

the objective of enabling

diesel technology to meet

Tier 2 emission standards not

later than 2010. [These

standards will apply to cars

and light trucks after the 2003

model year.]

No comparable provision.

Fuel cell demonstration

No current law.

Sec. 809. The Secretaries of

Energy and Defense are to

jointly carry out a program to

accelerate use of fuel cell

technology in military and

non-military uses.

Technologies developed in

the Partnership for a New

Generation of Vehicles and

Freedom Car programs are

specifically targeted.

No comparable provision.

Bus replacement

No current law.

Sec. 810. The Secretary of

Transportation is required to

carry out a study to determine

how best to replace dieselfueled buses with buses that

are hybrids, or buses that use

fuel cells or cleaner burning

alternative and renewable

fuels.

No comparable provision.

Comments

CRS-70

Provision

Current Law

Senate

House

Comments

Average fuel economy

standard for pickup

trucks

No specific provision.

Sec. 811. The CAFE

standard for “pickup trucks”

is frozen at 20.7 mpg, the

current standard for light-duty

trucks.

No comparable provision.

The House legislation

requires savings in the fuel

consumption of light-duty

trucks, which embraces light

trucks, SUVs and passenger

vans. The Senate language

would appear to require some

definition of a third category

of vehicle – “pickup trucks”

– in addition to passenger

cars and light-duty trucks.

Depending upon how pickups

are defined, the Senate

provision might not exclude

SUVs and vans from future

rulemakings to set a higher

CAFE standard.

Annual report on U.S.

energy independence.

No current law.

No comparable provision.

Sec. 802. National energy

plans required by the

Department of Energy

Organization Act (P.L. 95-91)

must include a section

evaluating progress the

United States has made

toward a goal of not

exceeding 50% dependence

on foreign oil sources by

2010. The plan shall also

address what legislative or

administrative actions are

needed to meet this goal.

The House language does not

specify whether this is

dependence measured as

gross imports or net imports.

In calendar year 2001, total

imports, expressed as a

percentage of petroleum

products supplied, was

59.3%; as an expression of

net imports, it was 54.3%. No

comparable provision was

included in the Senate bill,

but it was amended on the

floor to establish a consumer

energy commission that will

undertake a one-time study on

price spikes and how they

might be averted in the future.

CRS-71

Provision

Current Law

Senate

House

Comments

Exception to HOV

passenger

requirements for

alternative fuel vehicles

States may permit exemptions

from high occupancy (HOV)

restrictions for inherently low

emission vehicles [23 U.S.C.

102(a)(2)].

Sec. 812. States are permitted

to exempt one-passenger

alternative fuel vehicles from

HOV restrictions.

Sec. 151. States are permitted

to grant exceptions to HOV

restrictions for alternative fuel

and hybrid vehicles.

While not codified in federal

law, HOV exemptions for

such vehicles are already

provided by some states

because of their low

emissions.

Grants for alternative

fuel vehicles

The Transportation Equity

Act for the 21st Century

(TEA-21) [23 U.S.C. 149]

provides grant funding for the

purchase of alternative fuel

vehicles and infrastructure,

but does not provide funding

for advanced diesel vehicles.

No provision.

Sec. 2101- 2105. A pilot

program is established within

the Department of Energy to

provide grants to state and

local governments, and

metropolitan transit

authorities, to aid in the

purchase of alternative fuel

and advanced diesel vehicles,

and the infrastructure

necessary to support them.

Alternative fuel data

collection

No provision.

Sec. 813. The Administrator

of the Energy Information

Administration (EIA) is

required to conduct a survey

on alternative fuels and

publish monthly data on

quantities of fuel produced,

imported, and consumed, as

well as production costs,

marketing costs, and market

prices.

No provision.

Currently, EIA publishes

annual data on fuel

consumption and vehicle

purchases.

CRS-72

Provision

Current Law

Senate

House

Green school buses

The Transportation Equity

Act for the 21st Century

(TEA-21) [49 U.S.C.

5309(m)(1)(C)] provides

grant funding for research

and demonstration of fuel cell

buses, mainly for transit

purposes.

Secs. 814- 816. A pilot

program is established by the

Departments of Energy and

Transportation to provide

grants to local governments

and contractors that provide

school bus service for public

school systems to aid in the

purchase of alternative fuel

and advanced diesel buses,

and the infrastructure

necessary to support them. In

addition, Section 815

establishes a pilot program

for the development and

demonstration of fuel cell

school buses.

Sec. 2141- 2144. Similar to

the Senate version, except

that the program would be

administered solely by the

Department of Energy.

Further, the House version

has potentially more stringent

requirements for emissions

from eligible vehicles.

Biodiesel fuel use credit

Energy Policy Act of 1992

[42 U.S.C. 13220]. Of the

vehicles purchased by a

federal, state, and fuel

provider fleet in a given year,

a percentage must be

alternative fuel vehicles. Any

excess vehicle purchases may

be credited toward future

years. Fleet operators may

meet up to 50% of the

requirement in a given year

by purchasing biodiesel fuel,

but the use of biodiesel fuel

does not generate credits.

Sec. 817. Fleet operators may

claim alternative fuel vehicle

credits for excess purchase of

biodiesel fuel. Further, fleet

operators may use biodiesel

fuel to meet up to 100% of

required purchases in a given

year.

Sec. 153. Credits for the

purchase of biodiesel fuel

may be counted toward future

vehicle purchase

requirements.

Comments

CRS-73

Provision

Current Law

Senate

House

Comments

Neighborhood electric

vehicles

The Energy Policy Act of

1992 [42 U.S.C. 13211]

defines the term “alternative

fuel vehicle.”

Sec. 818. Neighborhood

electric vehicles may be

treated as alternative fuel

vehicles for compliance and

tax purposes.

No provision.

Neighborhood electric

vehicles (NEVs) are small

electric vehicles that are

certified for low speeds.

Secondary electric

vehicle battery

research and

development

No provision.

No provision.

Sec. 2131- 2133. A program

is established for research and

development on applications

for used electric vehicle

batteries in utility and

commercial power storage.

Sec. 625 of the Energy Policy

Act required a DOE study of

utility applications for used

electric vehicle batteries.

Credit for hybrid

vehicles, dedicated

alternative fuel vehicles

and infrastructure

Energy Policy Act of 1992

[42 U.S.C. 13258]. Of the

vehicles purchased by a

federal, state, and fuel

provider fleet in a given year,

a percentage must be

alternative fuel vehicles.

Sec. 819. Fleet operators may

generate alternative fuel

vehicle (AFV) credits through

the use of hybrid vehicles. In

addition, fleet operators may

generate credits by helping

expand AFV use in noncovered fleets, and through

investment in AFV

infrastructure.

No provision.

Currently, hybrid vehicles are

not considered alternative fuel

vehicles because their

primary fuel is gasoline.

Credits may be used to help

meet future alternative

vehicle purchase

requirements.

CRS-74

Provision

Current Law

Senate

House

Comments

Renewable content of

motor fuel

No provision.

Sec. 820. Beginning in 2004,

motor gasoline must contain a

certain amount of renewable

fuel. In 2004, 2.3 billion

gallons of renewable fuel

must be sold annually,

increasing incrementally each

year to 5 billion gallons in

2012. After 2012, the

percentage of renewable fuel

in the motor fuel pool must be

constant. Ethanol from

cellulosic biomass is granted

extra credits toward fulfilling

the program’s requirements.

Further, renewable fuel

providers are exempt from

defective product liability if

they are in compliance with

the Clean Air Act.

Sec. 604. The EPA

Administrator and the

Secretary of Energy are

required to conduct a study

on the feasibility of requiring

a minimum quantity of

renewable fuel in motor fuel.

The two most common

renewable fuels are ethanol

and biodiesel. Currently,

about 1.8 billion gallons of

ethanol and 0.1 billion gallons

of biodiesel are consumed

annually in the United States.

Federal agency

ethanol-blended

gasoline and biodiesel

purchasing

requirement

No provision.

Sec. 820A. Federal agencies

must purchase ethanolblended gasoline and

biodiesel for diesel blending

in areas where the fuels are

generally available at a

competitive price. Certain

vehicles, such as non-road,

combat, emergency, and law

enforcement vehicles are

exempt.

No provision.

In some places, mainly in the

Midwest, ethanol-blended

gasoline comprises the

majority of retail gasoline.

CRS-75

Provision

Current Law

Senate

House

Loan guarantees for

commercial byproducts

(including ethanol) of

municipal solid waste

No provision.

Sec. 820B. The Secretary of

Energy is required to

establish a program to

provide loan guarantees for

the construction of facilities

that process and convert

municipal solid waste into

fuel ethanol and other

commercial products.

Sec. 603 The Secretary of

Energy is required to conduct

a study on the feasibility of

providing loan guarantees for

such facilities.

Comments

Additional Fuel Efficiency Measures

Provision

Current Law

Senate

House

Comments

Fuel efficiency of the

federal fleet of

automobiles

Executive Order 13149,

issued by President Clinton

on April 21, 2000, directed

that federal agencies increase

the EPA-rated fuel economy

of their new passenger cars

by at least 1 mile per gallon

(mpg) by the end of FY2002

and at least 3 mpg by FY2005

from a baseline of FY1999

acquisitions.

Sec. 821. Executive agencies

are required to increase the

average fuel economy of their

new vehicle purchases by 1

mile per gallon (mpg) in

FY2002 and 3 mpg in

FY2005, from a FY1999

baseline. This applies to

passenger automobiles and

light-duty trucks, but

excludes vehicles used in

combat-related missions, law

enforcement, and emergency

rescue work.

Sec. 204. Similar to Senate

provision.

These provisions largely

codify the existing executive

order.

CRS-76

Provision

Current Law

Senate

House

Comments

Idling reduction

systems in heavy duty

vehicles and advanced

idle elimination systems

No provision.

Sec. 822. The Department of

Energy is required to study

potential fuel savings from

reducing long duration idling

of heavy-duty engines. After

completion of the study, the

Secretary may require the

installation of on-board idling

reduction systems on new

heavy-duty vehicles.

Sec. 162. The Environmental

Protection Agency is required

to determine whether existing

air emissions models

accurately reflect the

emissions from idling heavyduty vehicles. Further, the

Agency is required to

determine whether emission

reduction credits should be

allotted for the installation of

idle elimination systems at

truck stops and other

locations.

The House and Senate

versions focus on

substantially different factors.

The Senate version focuses

solely on on-board

technologies to reduce fuel

consumption. The House

version focuses on stationary

systems to reduce pollutant

emissions.

Conserve by bicycling

program

No provision.

Sec. 823. The Secretary of

Transportation is required to

establish a pilot program to

encourage the use of bicycles

in place of motor vehicles.

No provision.

Fuel cell vehicle

program

Various programs currently

exist to promote the research,

development, and

demonstration of fuel cells

and fuel cell vehicles.

Sec. 824. The Secretary of

Energy is required to develop

a program to enable the

availability of 100,000

hydrogen fuel cell vehicles by

2010, and 2.5 million vehicles

by 2020. Further, the

program should include

timetables for the

development of hydrogen fuel

infrastructure to support those

vehicles.

No provision.

CRS-77

Federal Reformulated Fuels

Provision

Current Law

Senate

House

Short title

Not applicable.

Sec. 831. “Federal

Reformulated Fuels Act of

2002.”

No similar provision.

Leaking underground

storage tanks and

funding for mtbe

contamination

The Solid Waste Disposal Act

[42 U.S.C. 6991] provides for

the regulation of underground

storage tanks, including

gasoline storage tanks.

Among other provisions, the

act allows regulations for the

detection, prevention, and

correction of releases of

regulated substances.

Sec. 832. Funds are

authorized from the Leaking

Underground Storage Tank

(LUST) Trust Fund for the

prevention and mitigation of

contamination by ether fuel

additives including methyl

tertiary butyl ether (MTBE).

The following funds are

authorized for FY2003

through FY2008: $200

million for general MTBE

mitigation, $200 million for

release prevention; $2 million

for research on bedrock

remediation; $350,000 for

research on soil remediation.

Sec. 504. $200 million is

authorized from the LUST

Trust Fund for the mitigation

and prevention of MTBE

contamination.

Comments

MTBE, a common additive in

gasoline, has been found to

contaminate underground

drinking water sources in

several states.

CRS-78

Provision

Current Law

Senate

House

Comments

Authority for water

quality protection from

fuels

The Clean Air Act does not

give the Environmental

Protection Agency (EPA) the

authority to regulate fuels to

prevent water contamination.

Sec. 833. The EPA

Administrator may control or

prohibit the sale of fuel or

fuel additives that may harm

water quality. Four years

after the date of enactment,

the use of MTBE in gasoline

is banned. Individual states

may authorize the use of

MTBE after notifying EPA.

Funding is authorized for

grants to MTBE merchant

producers to convert to the

production of other gasoline

additives.

No provision.

At least 14 states have already

passed laws to ban or limit

the use of MTBE.

Elimination of oxygen

content requirement

for reformulated

gasoline

The Clean Air Act

Amendments of 1990 [42

U.S.C. 7545(k)] require the

use of Reformulated Gasoline

(RFG) in certain ozone

nonattainment areas. RFG

areas must meet more

stringent standards for

various pollutants than

conventional gasoline areas.

RFG is also required to

contain a minimum level of

oxygen. In addition,

Southern RFG areas face

more stringent standards than

Northern areas.

Sec. 834. The Clean Air Act

is amended to eliminate the

minimum oxygen

requirement. Further, EPA

must promulgate regulations

to maintain current toxic air

pollutant reductions. In

addition, standards for

Northern and Southern RFG

areas are consolidated so that

all areas are held to the more

stringent southern standard

No provision.

CRS-79

Provision

Current Law

Senate

House

Public health and

environmental impacts

of fuels and fuel

additives

Under the Clean Air Act

Amendments of 1990 [42

U.S.C. 7545(b)], the EPA

Administrator may require

manufacturers to conduct

tests on the health effects of

fuels and fuel additives.

Sec. 835. The EPA

Administrator must study the

health and environmental

effects of fuels and fuel

additives. Manufacturers are

also required to conduct tests

on health and environmental

effects.

No provision.

Analyses of motor

vehicle fuel changes

No provision.

Sec. 836. The EPA

Administrator must publish

an analysis of the changes in

emissions and air quality

resulting from the

implementation of Subtitle C.

No provision.

Additional opt-in areas

under reformulated

gasoline program

Under the Clean Air Act

Amendments of 1990 [42

U.S.C. 7545(k)], areas in

severe or extreme

nonattainment of ozone

standards are required to use

RFG. Other nonattainment

areas with less severe

problems may opt-in to the

RFG program.

Sec. 837. Areas in

compliance with ozone

standards (that are within the

ozone transport region) may

also opt-in to the federal RFG

program, unless there is

insufficient supply of RFG.

No provision.

Comments

The ozone transport region

covers areas from the

Washington, D.C.

Metropolitan Statistical Area

to Maine.

CRS-80

Provision

Current Law

Senate

House

Modifications to

reformulated gasoline

requirements

Regulations promulgated

under the RFG program set

certain accounting,

documentation, and

compliance requirements

concerning the draining of

gasoline storage tanks and the

distribution of RFG blending

components [40 CFR 80.78

and 80.102].

No provision.

Sec. 501- 502. EPA is

required to determine whether

these requirements should be

modified. Specifically, EPA

must study whether changes

could improve the cost and

availability of RFG. Any

modifications to the RFG

program must be

implemented 60 days before

the beginning of the high

ozone season (summer).

Federal enforcement of

state fuels

requirements

Under the Clean Air Act

Amendments of 1990 [42

U.S.C. 7545(k)], states with

less-severe ozone

nonattainment areas (that do

not opt-in to the RFG

program) may set their own

fuel standards as part of State

Implementation Plan (SIP)

for ozone.

Sec. 838. If a state requests,

EPA may enforce fuel

requirements set in a state’s

SIP.

No provision.

Comments

CRS-81

Provision

Current Law

Senate

House

Comments

Fuel system

requirements

harmonization study

and boutique fuels

Fuel standards vary.

Sec. 839. The EPA

Administrator and the

Secretary of Energy are

required to conduct a study of

all federal, state, and local

environmental requirements

for motor fuels. They are

required to analyze the effects

of the various standards on

consumer prices, fuel

availability, domestic

suppliers, air quality and

vehicle emissions. Further,

they are required to study the

feasibility of developing

national or regional fuel

standards. A report must be

published by June, 2006.

Sec. 503. Substantially similar

to the Senate provision.

However, the House version

would require publication of a

report by the end of this year.

Because of various federal

and state standards, as well as

local refining and marketing

decisions, refiners may face

several different fuel

standards in a state. These

various fuel formulations

have the potential to

contribute to supply

disruptions and price

instability.

Review of federal

procurement initiatives

relating to use of

recycled products and

fleet and

transportation

efficiency

Executive Order 13149,

issued by President Clinton

on April 21, 2000, directed

that federal agencies increase

the EPA-rated fuel economy

of passenger cars and to fuel

alternative fuel vehicles

(AFV) with alternative fuels a

majority of the time.

Executive Order 13101,

issued by President Clinton

on September 14, 1998,

directed federal agencies to

increase their use of recycled

products.

Sec. 840. The Administrator

of the General Services

Administration must submit a

report to Congress on efforts

by federal agencies to

purchase recycled products,

purchase AFVs and fuels, and

improve federal vehicle fleet

efficiency.

No provision.

Most federal AFVs are dualfuel vehicles (capable of

being fueled by either an

alternative or conventional

fuel), and most of these are

fueled with gasoline as

opposed to alternative fuels.

CRS-82

Provision

Current Law

Senate

House

Mobile to stationary

source trading

No provision.

No provision.

Sec. 154. The Environmental

Protection Agency (EPA) is

required to study whether

allowing mobile and

stationary sources to trade

emissions credits under the

Clean Air Act would provide

additional flexibility in

achieving and maintaining air

quality standards.

Comments

Energy Efficiency and Assistance to Low Income Consumers

Low Income Assistance and State Energy Programs

Provision

Current Law

Senate

House

Energy conservation

programs

reauthorization

Funding authorizations have

expired.

No provision.

Sec. 101. Funding is

authorized for DOE Energy

Efficiency R&D programs

under the Interior

Appropriations bill through

FY2006.

Comments

CRS-83

Provision

Current Law

Senate

House

Comments

LIHEAP,

weatherization, and

state energy funding

Department of Health and

Human Services funding for

the Low-Income Home

Energy Assistance Program

(LIHEAP) is currently

authorized through FY2003

in the Human Services

Authorization Act of 1998.

DOE Weatherization Program

funding is authorized through

FY2003 under 42 U.S.C.

6872. The DOE State

Energy Program funding is

authorized through FY2003

under 42 U.S.C. 6322.

Sec. 901. Increased funding is

authorized for LIHEAP and

Weatherization grant

programs for FY2003

through FY2005.

Funding authorizations for

LIHEAP (Sec. 134) and

Weatherization (Sec. 133)

grant programs are set for

FY2003 through FY2005.

The bills are nearly identical.

The House bill also requires a

GAO study of LIHEAP.

State energy programs

Authorization expired.

Sec. 902. Increased funding is

authorized for FY2003

through FY2005 for the DOE

State Energy grant programs.

Also, new requirements are

set for state energy

conservation goals and plans.

Sec. 131. The House

provisions are nearly identical

to those in the Senate bill.

Energy efficient

schools

Sec. 397 of the Energy Policy

and Conservation Act (EPCA,

P.L. 94-163) authorizes

funding for the DOE schools

and hospitals program

through FY2003.

Sec. 903. DOE is directed to

create a High Performance

Schools Program, a grant

program for using energyefficient measures in the

renovation and construction

of schools.

Sec. 132. The funding

authorization for the DOE

schools and hospitals

program is extended through

2010. Sec. 135 creates a

High Performance Public

Buildings Program, a grant

program for energy-efficient

renovation and construction

of local government

buildings.

The House provision in Sec.

135 appears similar to, but

broader than, the Senate

provision.

CRS-84

Provision

Current Law

Senate

House

Low income

community energy

efficiency pilot

program

No existing program.

Sec. 904. A pilot energyefficiency program is created

for community development

corporations and Native

American economic

development entities.

No provision.

Energy efficient

appliance rebate

programs

No existing program.

Sec. 905. DOE is required to

fund rebate programs in

eligible states to support

residential end-user purchases

of Energy Star products.

The House bill does not have

a rebate provision, but

Sec.3107 provides a tax credit

to producers for certain

energy efficient residential

appliances.

Comments

Federal Energy Efficiency

Provision

Current Law

Senate

House

Comments

Energy management

requirements

Section 202 of Executive

Order 13123 employs 1985 as

the baseline for measuring

federal building energy

efficiency improvements and

calls for a 35% reduction in

energy use per gross square

foot by 2010.

Sec. 911. The baseline is

updated from 1985 to 2000

and a new goal of 20%

reduction is set for 2011. At

that time, DOE is directed to

assess progress and set a new

goal for 2021.

Sec. 121b. The 1985 baseline

is kept and a goal of 45%

reduction is set for 2020.

The two bills are fairly close

in the goal set for 2011.

Energy use

measurement and

accountability

No existing requirement.

Sec. 912. Federal buildings

are required to be metered or

sub-metered by late 2004, to

help reduce energy costs and

promote energy savings.

Sec. 121f and 126. The

provision is nearly identical

to that in the Senate bill.

CRS-85

Provision

Current Law

Senate

House

Advanced building

efficiency testbed

New program.

No provision.

Sec. 125. DOE is required to

create a program to develop,

test, and demonstrate

advanced federal and private

building efficiency

technologies.

Federal building

performance standards

Mandatory energy efficiency

performance standards for

federal buildings are set in

Section 305(a) of P.L. 94-385

(ECPA) and implemented

through 10 CFR Part 435.

Sec. 913. DOE is directed to

set revised energy efficiency

standards for new federal

buildings.

No provision.

Procurement of energy

efficient products

Section 403 of Executive

Order 13123 directs federal

agencies to purchase lifecycle cost-effective Energy

Star products.

Sec. 914. Statutory authority

is created that requires federal

agencies to purchase Energy

Star or energy efficient

products designated by the

Federal Energy Management

Program (FEMP).

Sec. 121e. A similar

requirement is set in the

House bill. Also, Sec.124

requires federal agencies to

acquire efficient (SEER 12)

air conditioners and heat

pumps.

Repeal of energy

savings performance

contract (ESPC) sunset

Section 801(c) of the National

Energy Conservation Policy

Act (NECPA, P.L. 95-619)

provides for federal use of

energy savings performance

contracts through the end of

FY2002.

Sec. 915. Federal agencies are

empowered to continue using

energy savings performance

contracts indefinitely.

Sec. 122. A similar extension

is set out in the House bill.

Energy savings

performance contract

definitions

Section 804(2) of NECPA

provides definitions for

ESPCs.

Sec. 916. The definition of

energy savings is expanded to

include a reduction in water

costs.

Sec. 122. Similar definitions

are set out in the House bill.

Comments

CRS-86

Provision

Current Law

Senate

House

Review of energy

savings performance

contract program

No existing requirement.

Sec. 917. DOE is required to

report to Congress on barriers

to the ESPC program and

ways to improve its

effectiveness.

Sec. 127. The same provision

is set out in the House bill.

Utility incentive

programs

Section 546(c) of NAECA

authorizes and encourages

federal agencies to participate

in utility incentive programs

to increase energy efficiency

and water conservation.

No provision.

Sec. 123. The current law is

amended to allow agencies to

form contracts for energy

efficiency services under

utility programs.

Federal energy bank

No existing requirement.

Sec. 918. A fund is

established in the U.S.

Treasury that can be used for

loans to federal agencies for

energy and/or water

efficiency.

No related provision.

Energy and water

saving measures in

congressional buildings

Section 310 of the Legislative

Branch Appropriations Act of

1999 called for the Architect

of the Capitol (AOC) to

develop an energy efficiency

plan for congressional

buildings.

Sec. 919. The Architect of the

Capitol is required to plan

and implement an energy and

water conservation strategy

for congressional buildings

that is consistent with that

required of other federal

buildings. No funding

authorization specified.

Sec. 128. Funding is

authorized to support a

requirement that the AOC

study the potential for

renewable energy and other

sources to make the Capitol

complex more secure from

power shortages.

Increased use of

recovered material in

federally funded

projects involving

procurement of cement

or concrete

No provision.

Sec. 920. Requires federally

funded projects to increase

the procurement of cement

and concrete that uses

recovered material.

No related provision.

Comments

CRS-87

Industrial Efficiency and Consumer Products

Provision

Current Law

Senate

House

Voluntary

commitments to reduce

industrial energy

intensity

While there is no current

statutory authority, programs

have been in place, such as

the former Climate Wise

program at EPA.

Sec. 921. DOE is authorized

to form voluntary agreements

with industry sectors or

companies to reduce energy

use per unit of production by

2.5% per year.

No provision.

Authority to set

standards for

commercial products

Current law has standards for

residential appliances, but not

for commercial equipment.

Sec. 922. DOE is authorized

to set energy efficiency

standards for commercial

appliances and products.

No provision.

Additional definitions

Energy terms are defined in

various statutes.

Sec. 923. Terms are defined

for provisions in the

following sections.

Sec. 124d. Definitions for

several energy efficiency

terms are updated.

Additional test

procedures

No existing requirement.

Sec. 924. Test procedures are

prescribed for exit signs,

traffic signals, and

transformers, and DOE is

directed to set procedures for

ceiling fans, vending

machines, and commercial

refrigerators.

Sec. 143. DOE is directed to

set test procedures, standards,

and labels for residential

furnace fans, residential

central air conditioner fans,

heat pump circulation fans,

suspended ceiling fans, and

refrigerated bottled or canned

beverage vending machines.

Comments

CRS-88

Provision

Current Law

Senate

House

Energy labeling

Section 324(a) of the Energy

Policy and Conservation Act

(P.L. 94-163) directed the

Federal Trade Commission

(FTC) to issue a rule for

energy efficiency labels on

consumer products (42 U.S.C.

6294).

Sec. 925. FTC is required to

issue a rule that addresses

changes to improve the

effectiveness of energy labels.

Also, DOE is directed to

prescribe labeling

requirements for products

added by this title of the bill.

Sec. 142. DOE is required to

recommend labeling for noncovered products to FTC.

FTC is required to issue a rule

on the feasibility of labeling

non-covered products and the

effectiveness of the current

labeling program.

Energy Star Program

No existing statutory

authority.

Sec. 926. DOE and EPA are

given statutory authority for

the Energy Star program.

Sec. 141. The statutory

authority is the same, except

that DOE and EPA are also

directed to determine whether

certain products and buildings

should be included under the

authority.

Energy conservation

standards for central

air conditioners and

heat pumps

Section 546(c) of NECPA, as

implemented by 10 CFR, sets

a seasonal energy efficiency

ratio (SEER) standard of 10

for central air conditioners

and heat pumps.

Sec. 927. DOE is directed to

amend the standard within 60

days after enactment.

No provision.

Energy conservation

standards for

additional consumer

and commercial

products and standby

mode

No existing requirement for

additional products and

standby mode.

Sec. 928. DOE is directed to

issue a rule that determines

whether an energy efficiency

standard needs to be set for

the standby operating mode

of certain appliances.

Sec. 143. DOE is required to

set energy efficiency

standards for the standby

mode of households

appliances, excluding certain

digital devices and certain

other equipment subject to

other standards.

Comments

A DOE rulemaking late in the

Clinton Administration set the

standard to a SEER of 13.

Early in the Bush

Administration a new DOE

rulemaking rescinded the

previous one and proposed a

SEER of 12.

CRS-89

Provision

Current Law

Senate

House

Consumer education

on energy efficiency

benefits of air

conditioning, heating,

and ventilation

maintenance

No provision.

Sec. 929. A public education

program is authorized that

would address the energysaving benefits of improved

maintenance for certain

equipment. Also, the Small

Business Administration is

directed to assist small

businesses in becoming more

energy efficient.

Sec. 143c. DOE is required to

implement a public education

program about the energy

saving benefits of improved

maintenance of equipment.

Study of energy

efficiency standards

No provision.

Sec. 930. DOE is directed to

have NAS study how the

effectiveness of standards

may be influenced by

measures that focus either on

energy end-use or on the full

fuel cycle.

No provision.

Comments

Housing Efficiency

Provision

Current Law

Senate

House

Capacity building for

energy efficient,

affordable housing

No provisions for energy

efficient housing in HUD

Demonstration Act (42

U.S.C. 9816).

Sec. 931. Activities are

required that provide energy

efficient affordable housing

and other residential measures

under the HUD

Demonstration Act.

Sec. 4101. The House bill

provision is the same as that

in the Senate bill.

Comments

CRS-90

Provision

Current Law

Senate

House

Increase of CDBG

public services cap for

energy conservation

and efficiency activities

Section 105(a)(8) of the

Housing and Community

Development Act of 1974

allows a percentage of

community development

block grant (CDBG) public

service funding to be used for

energy efficiency.

Sec. 932. The amount of

assistance for providng public

services involving energy

efficiency is increased by

10%.

Sec. 4102. The House bill

provision is the same as that

in the Senate bill.

Federal Housing

Administration

mortgage insurance

incentives for energy

efficient housing

Section 203(b)(2) of the

National Housing Act allows

solar energy equipment to

increase the amount of

property value that can be

covered by mortgage

insurance by up to 20%.

Sec. 933. The amount of

property value that can be

covered by mortgage

insurance due to solar energy

equipment. is increased from

20% to 30%.

Sec. 4103. The House bill

provision is the same as that

in the Senate bill.

Public housing capital

fund

No provision for energy and

water efficiency

improvements (42 U.S.C.

1437).

Sec. 934. The Public Housing

Capital Fund is modified to

include certain energy and

water use efficiency

improvements.

Sec. 4104. The House bill

provision is the same as that

in the Senate bill.

Grants for energyconserving

improvements for

assisted housing

No provision for energy and

water efficiency

improvements (42 U.S.C.

8231).

Sec. 935. HUD is directed to

provide grants for certain

energy and water efficiency

improvements to multifamily

housing projects.

Sec. 4105. The House bill

provision is the same as that

in the Senate bill.

North American

Development Bank

No existing requirement.

Sec. 936. The North

American Development Bank

is encouraged to finance

energy efficiency projects.

Sec. 4106. The House bill

provision is the same as that

in the Senate bill.

Comments

CRS-91

Provision

Current Law

Senate

House

Capital fund

No existing provision for

proposed energy projects (42

U.S.C. 1437).

Sec. 937. Activities of the

Housing Act Capital Fund are

expanded to include broader

authorization for energy

efficiency projects.

No provision.

Energy-efficient

appliances

No existing requirement.

Sec. 938. Public housing

agencies are required to

purchase cost-effective

Energy Star appliances.

No provision.

Energy-efficient

standards

The federal government

encourages states to use

energy efficiency standards

for public and assisted

housing, and Model

Efficiency codes, that are set

by the Council of American

Building Officials (CABO)

(42 U.S.C. 12709).

Sec. 939. The energy

efficiency standards and

codes are changed from

CABO to the 2000

International Energy

Conservation Code.

No provision.

Energy strategy for the

Department of Housing

and Urban

Development (HUD)

No existing requirement.

Sec. 940. HUD is required to

implement an energy

efficiency strategy to reduce

utility expenses in public and

assisted housing. Also, HUD

is directed to create an Office

of Energy Management to

implement the strategy and

report on it to Congress.

No provision.

Comments

CRS-92

Rural and Remote Communities

Provision

Current Law

Senate

House

Rural and Remote

Community Fairness

Act

No current law.

Secs. 941-950. In general,

the purpose of this title is to

develop and maintain “viable

rural and remote communities

through the provision of ...

reasonably priced and

environmentally sound

energy, ...

telecommunications and

utility services to those

communities that do not have

these services or who

currently bear costs ...

significantly above the

national average.” [Sec. 942]

Among other programs, the

“Rural and Remote

Community Fairness Act”

authorizes and appropriates

$20 million for 7 fiscal years

to provide grants to rural and

remote communities for

purposes of “increasing

energy efficiency, siting or

upgrading transmission and

distribution lines, or

providing or modernizing

electric facilities.” [Sec. 948]

No comparable provision.

Comments

CRS-93

National Climate Change Policy

Sense of Congress

Provision

Current Law

Senate

House

Sense of Congress on

global warming

No provision.

Sec. 1001. Growing evidence

is found that increases in

greenhouse gas

concentrations are

contributing to global climate

change, and it is the Sense of

the Congress that the United

States should demonstrate

international leadership and

responsibility in mitigating

the health, environmental,

and economic threats posed

by global warming. and

assess the Federal

Government’s

implementation of it.

No provision.

Comments

Climate Change Strategy

Provision

Current Law

Senate

House

Comments

Definitions

No provision.

Sec. 1012. Critical terms used

in the title are defined,

including “climate-friendly

technology” and

“stabilization of greenhouse

gas concentrations.”

No provisions.

No specific targets or time

frames for greenhouse gas

reduction are mentioned.

CRS-94

Provision

Current Law

Senate

House

Comments

National climate

change strategy

Sec. 1602(a) of the 1992

Energy Policy Act states that

“The ... National Energy

Policy Plan ... shall include a

... strategy ... designed to

achieve ... the stabilization

and eventual reduction in the

generation of greenhouse

gases....”

Sec. 1013. The President,

through a new Office of

National Climate Change

Policy (ONCCP) in the

Executive Office of the

President (EOP), is to develop

a National Climate Change

Strategy (NCCS) based on

parameters identified in the

Title. The ONCCP is directed

to develop the NCCS with the

long-term goal of

stabilization of greenhouse

gas concentrations. The

NCCS is to encompass four

key elements – (1) emissions

mitigation measures; (2)

technology innovation; (3)

climate adaptation research;

and (4) expanded efforts to

resolve remaining scientific

and economic uncertainty.

The ONCCP is to develop the

NCCS consistent with various

national goals and with

meaningful public and

interest group participation.

The NCCS is to be updated

every four years, and progress

reports are to be sent by the

President to Congress

annually. It is to be reviewed

by the National Academy of

Sciences.

No provision.

This title sets up new

institutions and institutional

arrangements to study global

climate change, its

implications, and possible

responses. It does not state

that its goal is compliance

with the UNFCCC

commitment the U.S. made

under article 4, 2(b) when it

ratified the UNFCCC in 1992.

Article 4, 2(b) of the ratified.

United Nations Framework

Convention on Climate

Change (UNFCCC) states:

“Parties [developed countries]

shall communicate ...

information on its policies

and measures ... with the aim

of returning individually or

jointly to their 1990 levels ...

anthropogenic emissions of

carbon dioxide and other

greenhouse gases.”

CRS-95

Provision

Current Law

Senate

House

Comments

Office of National

Climate Change Policy

New program office.

Sec. 1014. The ONCCP is

established within the EOP.

ONCCP is to focus on

achieving the long-term goal

of stabilizing greenhouse gas

concentrations while

minimizing adverse shortterm and long-term economic

and social effects. Duties

including establishing

priorities for the CCRS;

establishing the Interagency

Task Force; ensuring the

objective nature of the CCRS;

and advising the President on

federal implementation of

climate change activities.

Among the duties of the

Director are to advise the

President on the multiple

impacts of government

programs, tax, trade, and

foreign policies on achieving

the CCRS, and to prepare an

annual report for the

President to submit to the

Congress under Sec. 1013.

The Interagency Task Force

shall serve as the primary

forum through which federal

agencies assist the ONCCP in

developing and updating the

CCRS, and assist the Director

of the ONCCP in preparing

its annual report to Congress.

No provision.

New office established within

the Executive Office of the

President to coordinate

climate change policy.

CRS-96

Provision

Current Law

Senate

House

Comments

Office of Climate

Change Technology

New program office and/or

funding.

Sec. 1015. The Office of

Climate Change Technology

(OCCT) is established within

DOE. Responsibilities

include managing an energy

technology R&D program

that focuses on high-risk,

breakthrough technologies

that promise to mitigate

and/or sequester emissions of

greenhouse gases. In

addition, OCCT is to support

development of the NCCS

and the activities of the

Interagency Task Force

through provision of staff,

data, and analytical tools. The

OCCT is to maintain core

analytical capabilities and

other expertise in support of

the NCCS. It is required to

submit to Congress and the

ONCCP an annual report on

its progress in meeting the

goal of the energy technology

research and development

program. In addition, the

OCCT is to design and

manage an international

carbon dioxide sequestration

monitoring and data

collection program. The

object is to determine the

appropriateness of various

sequestration mechanisms.

Sec. 2171-2178. The Climate

Change Protection Programs

in EPA’s Office of Air and

Radiation receive a 3-year

authorization totaling $380.4

million to fund research and

development, and

demonstration and

commercialization projects on

a cost-shared basis with nonfederal entities. Non-federal

sources would be responsible

for 20% of the costs for a

research and development

project and 50% of the cost

for a demonstration and

commercial application.

Funding is restricted to

technologies or processes that

can be reasonably expected to

yield new, measurable

benefits to the cost,

efficiency, or performance of

the technology or process.

Both bills authorize costsharing programs with the

private sector, but with

different lead agencies, and

restrictions on what can be

funded.

EPA/OAR

authorization of

appropriations

CRS-97

Provision

Current Law

Senate

House

Additional offices and

activities

No specific provisions.

Sec. 1016. Other federal

agencies may establish

appropriate offices as

necessary to carry out the

provisions of this Act.

No provision.

Comments

Science and Technology Policy

Provision

Current Law

Senate

House

Global climate change

in the Office of Science

and Technology Policy

New priority goal.

Sec. 1021. Section 101(b) of

the National Science and

Technology Policy,

Organization, and Priorities

Act of 1976 is amended to

include under the Office of

Science and Technology

Policy (OSTP) the priority

goal of “improving efforts to

understand, assess, predict,

mitigate and respond to

global climate change.”

No provision.

Director of Office of

Science and

Technology Policy

functions

New responsibility.

Sec. 1022. OSTP is to advise

the Director of ONCCP on

science and technology

matters as they relate to

climate change.

No provision.

Comments

CRS-98

Miscellaneous Provisions

Provision

Current Law

Senate

House

Additional information

for regulatory review

New requirement.

Sec. 1031. Agencies are

required to include in any

Statement of Energy Effects

pursuant to Executive Order

13211 an estimate of the net

change in greenhouse gas

emissions resulting from the

proposed federal action, and

which policies or measures

will be undertaken to mitigate

or offset the increased

emissions.

No provision.

Greenhouse gas

emissions from federal

facilities

New requirement.

Sec. 1032. Four federal

agencies are required to

develop a methodology for

estimating greenhouse gas

emissions from all federally

owned, leased, or operated

facilities, including mobile

sources. An emissions

estimate is required within 18

months of enactment.

No provision.

Comments

CRS-99

National Greenhouse Gas Database

Provision

Current Law

Senate

House

Purpose

A voluntary greenhouse

reduction accounting system

exists under Sec. 1605(b) of

the 1992 Energy Policy Act.

Sec. 1101. Purpose is to

establish a reliable and

accurate greenhouse gas

inventory, reductions registry,

and information system.

No provision.

Sec. 1102. Terms for Title XI

are defined. Six gases are

explicitly included in the

definition of greenhouse

gases: carbon dioxide,

methane, nitrous oxide,

hydrofluorocarbons,

perfluorocarbons, and sulfur

hexafluoride. Others may be

added to the list.

No provision.

A mandatory greenhouse

reporting system for

powerplants is required under

Sec. 821 of the 1990 Clean

Air Act Amendments.

Definitions

New Program.

Comments

CRS-100

Provision

Current Law

Senate

House

Establishment of

memorandum of

agreement

New Program.

Sec. 1103. Specifies duties for

the Department of Energy,

Department of Commerce,

Environmental Protection

Agency, and Department of

Agriculture with respect to

the database. The Director of

ONCCP shall facilitate a

memorandum of agreement

among the agencies to

develop and operate the

database.

No provision

National Greenhouse

Gas Database

New Program

Sec. 1104. The National

Greenhouse Gas Database is

established to collect, verify,

and analyze information on

greenhouse gas emissions and

reductions by entities in the

United States. The

comprehensive system is to

maximize completeness while

minimizing costs to

participants. Reductions

recorded may be applied to

any future control program.

No provision.

Comments

CRS-101

Provision

Current Law

Senate

House

Comments

Greenhouse gas

reduction reporting

Voluntary greenhouse gas

reductions are currently

reported under Sec. 1605(b)

of the 1992 Energy Policy

Act.

Sec. 1105. All participating

entities must establish a

baseline on an entity-wide

basis (except for sequestration

projects), and report annually

to the appropriate agency

their direct and indirect

greenhouse gas emissions

beginning the April 1 of the

third calendar year after

enactment. Entities may

choose to report verified

reductions achieved before

the above date.

No provision.

Reportable reductions include

verifiable reductions reported

under Sec. 1605(b) of

EPACT.

Measurement and

verification

New requirements.

Sec. 1106. The four

designated agencies shall

jointly develop

comprehensive measurement

and verification methods to

ensure the r

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Omnibus Energy Legislation: H.R. 4 Side-by-side Comparison · RL31427 | Frix