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:
!
!
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(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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