Omnibus Energy Legislation (H.R. 6): Side-by-Side Comparison of Non-Tax Provisions
Congressional research reportSep 9, 2003
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Omnibus Energy Legislation (H.R. 6):
Side-by-Side Comparison of Non-Tax Provisions
Updated September 9, 2003
Mark Holt and Carol Glover, Coordinators
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress
Omnibus Energy Legislation (H.R. 6):
Side-by-Side Comparison of Non-Tax Provisions
Summary
Continuing a legislative effort that began in the 107th Congress, the House and
Senate in the first session of the 108th passed two distinct versions of an omnibus
energy bill (H.R. 6), which would be the first comprehensive energy legislation in
more than 10 years.
Although Republicans are in the majority in both chambers, the conference on
H.R. 6 will be complicated by deep divisions within the Senate on energy policy.
Facing numerous amendments and limited floor time, the Senate set aside the energy
bill it had been considering in the 108th Congress (S. 14) and passed the text of last
year’s Senate energy bill (H.R. 4). Because last year’s bill was passed when the
Senate was under a Democratic majority, some Republican leaders have pledged to
re-insert provisions from this year’s S. 14 in conference.
The House version of H.R. 6, which passed April 11, 2003, 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 — with a
2,000-acre limitation on production and support facilities. The Senate version,
approved July 31, 2003, leaves ANWR off-limits to drilling.
The electricity provisions of H.R. 6 would continue to change the regulatory
requirements for the wholesale electric market. In general, with some differences,
both the House and Senate versions would repeal the Public Utility Holding
Company Act (PUHCA) and give the Federal Energy Regulatory Commission
(FERC) and state utility commissions access to utility books and records. Both
would also repeal the mandatory purchase requirement of the Public Utility
Regulatory Policies Act (PURPA) when a competitive electric market exists.
Automobile and light truck fuel efficiency was the subject of considerable
debate in both houses. The Senate version would require development of new
Corporate Average Fuel Economy (CAFE) standards, but it also would freeze
“pickup trucks” at the current light truck standard of 20.7 mpg. The House version
would authorize appropriations to NHTSA to conduct further rulemakings and would
require a study of the feasibility and effects of reducing automobile fuel use.
The House version of H.R. 6 includes a renewable fuel standard (RFS) that
would require the blending of 2.7 billion gallons of renewable fuel with gasoline in
2005. The required volume would rise to 5 billion gallons annually by 2015, while
the Senate version would require that target to be met by 2012. Several other
controversial environmental provisions are contained only in the Senate-passed bill,
particularly programs to address global climate change and renewable energy
requirements for electricity providers.
Tax provisions in the House and Senate bills are not included in this report.
No update of this report is planned.
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Arctic National Wildlife Refuge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Electricity Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Motor Vehicle Fuel Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Nuclear Accident Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Renewable Fuel Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Renewable Energy and Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Overview of House and Senate Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Energy Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Federal Leadership in Energy Conservation . . . . . . . . . . . . . . . . . . . . . . . . . 9
Energy Assistance and State Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Energy Efficient Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Alaska Natural Gas Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Strategic Petroleum Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Hydraulic Fracturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Unproven Oil and Natural Gas Reserves Recovery Program . . . . . . . . . . . 27
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Alternative Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Additional Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Nuclear Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Price-Anderson Act Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Miscellaneous Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Vehicles and Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Energy Policy Act Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Advanced Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Hydrogen Fuel Cell Heavy-Duty Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Transmission Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Bonneville Power Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Transmission Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Reliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Public Utility Holding Company Act Amendments . . . . . . . . . . . . . . . . . . 66
Public Utility Regulatory Policies Act (PURPA) Amendments . . . . . . . . . 73
Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Market Transparency, Round Trip Trading Prohibition, and Enforcement . 78
Consumer Protections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Merger Review Reform and Accountability . . . . . . . . . . . . . . . . . . . . . . . . 85
Study of Economic Dispatch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Motor Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
MTBE Cleanup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Automobile Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Distributed Energy and Electric Energy Systems . . . . . . . . . . . . . . . . . . . 101
Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Fossil Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Energy and Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Department of Energy Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Clean School Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Indian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Biomass Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Arctic Coastal Plain Domestic Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Insular Areas Energy Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Clean Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Hydrogen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
National Climate Change Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Sense of Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Climate Change Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Science and Technology Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
National Greenhouse Gas Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Climate Change Science and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Department of Agriculture Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
International Energy Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . 192
Climate Change Science and Information . . . . . . . . . . . . . . . . . . . . . . . . . 194
Amendments to the Global Change Research Act of 1990 . . . . . . . . 194
National Climate Services and Monitoring . . . . . . . . . . . . . . . . . . . . 197
Ocean and Coastal Observing System . . . . . . . . . . . . . . . . . . . . . . . . 199
Climate Change Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Climate Adaptation and Hazards Prevention . . . . . . . . . . . . . . . . . . . . . . . 202
Assessment and Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Forecasting and Planning Pilot Programs . . . . . . . . . . . . . . . . . . . . . 204
Critical Energy Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Department of the Interior Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Iraq Oil Import Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
Index of Senate Non-Tax Sections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
List of Tables
Table 1. Major Non-tax Provisions of House and Senate Energy Bills . . . . . . . . . 6
Table 2. Authorizations in H.R. 6 as passed by the House. . . . . . . . . . . . . . . . . 210
Table 3. Authorizations in H.R. 6 as Passed by the Senate . . . . . . . . . . . . . . . . 218
Omnibus Energy Legislation (H.R. 6):
Side-by-side Comparison of Non-tax
Provisions
Introduction
Continuing a legislative effort that began in the 107th Congress, the House and
Senate in the first session of the 108th passed two distinct versions of an omnibus
energy bill (H.R. 6), which would be the first comprehensive energy legislation in
more than 10 years.
Although Republicans are in the majority in both chambers, the conference on
H.R. 6 will be complicated by deep divisions within the Senate on energy policy.
Facing numerous amendments and limited floor time, the Senate set aside the energy
bill it had been considering in the 108th Congress (S. 14) and passed the text of last
year’s Senate energy bill. Because last year’s bill was passed when the Senate was
under a Democratic majority, some Republican leaders have pledged to re-insert
provisions from this year’s S. 14 in conference.
The House version of H.R. 6, which passed April 11, 2003, 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 — with a
2,000-acre limitation on production and support facilities. The Senate version,
approved July 31, 2003, leaves ANWR off-limits to drilling.
Both bills have extensive provisions to change the regulatory requirements for
the wholesale electric market, including repeal of the Public Utility Holding
Company Act (PUHCA). Both bills include provisions to address motor vehicle fuel
economy, nuclear accident liability, and authorizations of energy research and
development programs. Major provisions contained only in the Senate-passed bill
include programs to address global climate change and renewable energy
requirements for electricity providers (see Table 1).
This report summarizes the major non-tax provisions of the House- and Senatepassed bills, provides a detailed side-by-side comparison, and lists annual funding
authorizations.
Tax provisions in the House and Senate bills are not included in this report.
CRS-2
Major Provisions
Arctic National Wildlife Refuge. The congressional debate over whether
to open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing has
continued for more than 30 years. H.R. 6 as passed by the House would authorize
oil and gas exploration, development, and production in ANWR, with a 2,000-acre
limit on production and support facilities. Opponents of development in ANWR
expressed concern that the 2,000 acres would be spread out over vast areas of the
Refuge. The Senate-passed bill would keep ANWR closed to oil and gas activities.
Proponents of exploring ANWR point to advances in exploration and drilling
technology and methods that have significantly reduced the extent of surface
disturbance caused by oil and gas activities. While opponents concede this may be
so, they argue that the bill does not impose adequate requirements in this regard, that
surface disturbance represents only one of many environmental impacts, and that
considerable risk to the environment remains during all phases of development.
Some opponents, citing ANWR’s pristine character, argue that its ecology and habitat
should not be disturbed under any circumstances.
H.R. 6 was also amended on the floor to include language authorizing revenues
from bonus bids for leases in ANWR to be appropriated to the Low Income Home
Energy Assistance Program (LIHEAP). An amendment to strike the language
authorizing leasing and exploration of ANWR was defeated (197-228). (For
additional information, see CRS Issue Brief IB10111, The Arctic National Wildlife
Refuge: Controversies for the 108th Congress, and CRS Report RL31115, Legal
Issues Related to Proposed Drilling for Oil and Gas in the Arctic National Wildlife
Refuge.)
Electricity Regulation. Historically, electric utilities have been regarded as
natural monopolies requiring regulation at the state and federal levels. The Energy
Policy Act of 1992 (EPACT, P.L. 102-486) removed a number of regulatory barriers
to electricity generation in an effort to increase supply and introduce competition, but
further legislation has been introduced and debated to resolve remaining issues
affecting transmission, reliability, and other restructuring concerns.
Title VI of the House-passed H.R. 6 would, in part, provide for incentive-based
transmission rates, allow transmission owners in certain instances to exercise the
right of eminent domain to site new transmission lines, create an electric reliability
organization, and give new, but limited, authority to the Federal Energy Regulatory
Commission (FERC) over municipal and cooperative transmission systems.
In addition, the House bill would repeal the Public Utility Holding Company
Act (PUHCA) and give FERC and state public utility commissions access to books
and records, prospectively repeal the mandatory purchase requirement of the Public
Utility Regulatory Policies Act of 1978 (PURPA), and require utilities to provide
real-time rates and time-of-use metering. The House version of H.R. 6 would
establish market transparency rules, explicitly prohibit round-trip trading, and
significantly increase criminal penalties under the Federal Power Act.
CRS-3
In general, the Senate version of the energy bill would repeal PUHCA and give
FERC and the state utility commissions access to utility books and records. It would
also repeal the PURPA mandatory purchase requirement when FERC finds that a
competitive electric market exists. In addition, the Senate-passed H.R. 6 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 market-based 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.
(For additional information, see CRS Report RL32728, Electric Utility
Regulatory Reform: Issues for the 109th Congress.)
Motor Vehicle Fuel Economy. One of the first initiatives designed to have
a significant effect on oil demand was passage of corporate average fuel economy
standards (CAFE) in the Energy Policy and Conservation Act of 1975 (EPCA, P.L.
94-163). In the years since, there have been periodic calls for stiffening or
broadening the CAFE standards — especially as consumer demand has turned more
to light-duty trucks and sport utility vehicles (SUVs).
Higher CAFE standards for light-duty trucks were released April 1, 2003, by the
National Highway Traffic Safety Administration (NHTSA), but congressional
interest in the issue continues. The House version of H.R. 6 would authorize
appropriations to NHTSA to conduct further rulemakings and would require a study
on the feasibility and effects of reducing automobile fuel use. An amendment to
require a 5% reduction in automotive fuel usage by 2010 was defeated (162-268) on
the House floor.
The Senate language — originally passed before the latest NHTSA rulemaking
— would require NHTSA to issue new CAFE standards, except for “pickup trucks.”
The provision would freeze the standard for pickup trucks at 20.7 miles per gallon,
the level in effect when the Senate first approved this language in 2002. The CAFE
freeze on pickup trucks, which are undefined, could shift at least some of the burden
for achieving fuel savings to the passenger automobile portion of the fleet.
(For additional information, see CRS Issue Brief IB90122, Automobile and
Light Truck Fuel Economy: The CAFE Standards.)
Nuclear Accident Liability. Reauthorization of the Price-Anderson Act
nuclear liability system is one of the top nuclear items on the energy agenda. Under
Price-Anderson, commercial reactor accident damages are paid through a
combination of private-sector insurance and a nuclear industry self-insurance system.
Liability is capped at the maximum coverage available under the system, currently
about $10.9 billion. Price-Anderson also authorizes the Department of Energy
(DOE) to indemnify its nuclear contractors. The limit on DOE contractor liability
is the same as for commercial reactors, except when the limit for commercial reactors
drops because of a decline in the number of covered reactors.
CRS-4
The House version of H.R. 6 would extend Price-Anderson Act coverage
through August 1, 2017, while the Senate version would extend coverage for new
commercial reactors through August 1, 2012, and indefinitely extend DOE
indemnification authority. 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.
The nuclear industry contends that the system has worked well and should be
continued, but opponents charge that Price-Anderson’s liability limits provide an
unwarranted subsidy to nuclear power. The House version of H.R. 6 would also
require the Nuclear Regulatory Commission (NRC) to issue new regulations on
nuclear power plant security and to conduct force-on-force security exercises. The
proposed nuclear liability and security provisions are nearly identical to a
Price-Anderson extension bill passed by the House in the 107th Congress (H.R.
2983).
(For more information, see CRS Issue Brief IB88090, Nuclear Energy Policy.)
Renewable Fuel Standard. One of the most controversial provisions of the
energy legislation is the establishment of a renewable fuel standard (RFS) intended
to increase the use of ethanol and other renewable fuels. The provision was
supported by the oil industry, ethanol producers, and environmental groups.
However, critics argued that it would boost prices to consumers and create shortages.
The House version of H.R. 6 includes a renewable fuel standard (RFS) that
would require the blending of 2.7 billion gallons of renewable fuel with gasoline in
2005. Most of this would be met with ethanol, but other renewable fuels, including
biodiesel, would qualify. The required volume would rise to 5 billion gallons
annually by 2015. Further, the House version would eliminate the current
reformulated gasoline oxygen requirement.
The Senate version would also establish an RFS. The Senate RFS would be 2.3
billion gallons in 2004, increasing to 5.0 billion gallons in 2012. The Senate version
would also eliminate the reformulated gasoline oxygen requirement. Further, the
Senate version would ban the use of MTBE (a major competitor with ethanol)
because of groundwater contamination. The House version would not ban MTBE.
In addition to the above provisions, both bills would shield renewable fuels
suppliers and blenders from defective product liability. The House version would
provide similar protection for MTBE.
CRS-5
(For additional information, see CRS Issue Brief IB10041, Renewable Energy:
Tax Credit, Budget and Electricity Production Issues.)
Renewable Energy and Efficiency. The Senate version of H.R. 6 would
require retail electricity suppliers (electric utilities, except for municipal and
cooperative utilities) to obtain a minimum percentage of their power from a portfolio
of new renewable energy resources. The minimum renewable energy target, or
Renewable Portfolio Standard (RPS), would start at 1% in 2005, rise at a rate of
about 1.2% every two years, and level off at 10% in 2019.
Eligible resources for the RPS include solar, wind, ocean, and geothermal
energy, most forms of biomass, landfill gas, and incremental hydropower.
Renewables used on site to reduce the measured demand from the grid (defined as
a “generation offset”) would also be 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. However, this aspect may be a focus of debate in conference.
Tradable credits would be created, which could be purchased in place of power
from other suppliers. The credits would function like the Clean Air Act emission
allowance trading system, which has lowered compliance costs for air pollution
regulations. Electricity suppliers could “borrow” from expected future credits to fill
a present shortfall or “carry forward” surplus credits to future years. A cost cap for
the credits is set as the lesser of 1.5 cents/kilowatt-hour (kwh) or 200% of the average
market value of the credits. The House version of H.R. 6 does not have an RPS
provision.
Both the House and Senate versions direct DOE to issue a rule that “determines
whether” an energy efficiency standard needs to be set for “standby mode” energy use
by battery chargers and external power supplies. Further, DOE is directed to create
voluntary programs to reduce standby mode energy use. Also, both versions legislate
standards for illuminated exit signs, torchieres, distribution transformers, and traffic
signal modules, and direct DOE to set standards by rulemaking for suspended ceiling
fans, vending machines, commercial refrigerators and freezers, and unit heaters.
Further, the Senate version directs DOE to “amend” the energy efficiency standard
for central air conditioners and heat pumps. Also, both versions direct federal
agencies to meet progressive annual 2% reductions in energy use by federal buildings
that culminate in a 20% overall reduction over 10 years.
(For additional information, see CRS Issue Brief IB10020, Budget, Oil
Conservation and Electricity Conservation Issues.)
Overview of House and Senate Versions
The House and Senate versions of H.R. 6 generally address similar areas of
energy policy, although there are significant differences. For example, only the
House bill would open ANWR to oil and gas activities, and only the Senate version
includes extensive provisions explicitly addressing global climate change. Table 1
CRS-6
briefly summarizes the major non-tax provisions of the House and Senate versions
of H.R. 6.
Table 1. Major Non-tax Provisions of
House and Senate Energy Bills
Provision
House
Senate
Electricity restructuring
Changes regulatory
requirements to
emphasize competitive
market formation.
Changes regulatory
requirements to
emphasize competitive
market formation.
Arctic National Wildlife
Refuge (ANWR)
Opens ANWR to oil
and gas leasing.
No provision.
Corporate Average Fuel
Economy (CAFE)
Authorizes further
CAFE rulemakings.
Requires new CAFE
standards, except for
pickup trucks.
Global climate change
No specific provisions.
Establishes federal
offices to focus on
global climate change,
establishes a national
greenhouse gas
database, authorizes
R&D.
Appliance efficiency
standards
Requires new
standards for appliance
standby power and
several other uses of
electricity.
Requires new
standards for central air
conditioners, heat
pumps, appliance
standby power, and
several other uses of
electricity.
Nuclear accident liability
(Price-Anderson Act)
Extends PriceAnderson coverage for
new commercial
reactors and DOE
contracts. Includes
nuclear security
provisions.
Extends PriceAnderson coverage for
new commercial
reactors and DOE
contracts.
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.
Requires motor vehicle
fuel sold in the United
States to contain a
minimum volume of
ethanol or other
renewable fuel, bans
MTBE.
CRS-7
Provision
House
Senate
Renewable Portfolio
Standard
No provisions.
Requires electric
utilities to provide
minimum percentages
of power from new
renewable sources.
Energy Program
Authorizations, FY2002FY2006
Authorizes $48.7
billion (see Table 2).
Authorizes $56.1
billion (see Table 3).
Organization of Report
The remainder of this report provides a section-by-section summary comparison
of the non-tax provisions of H.R. 6 as passed by the House and Senate. The sections
are listed in numerical order as they appear in the House-passed version. Funding
authorizations are shown in separate tables following the side-by-side tables. A
numerical index of the Senate sections follows the authorization tables.
The following analysts in the CRS Resources, Science, and Industry Division
contributed to this report:
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Amy Abel, electric utilities;
Robert Bamberger, energy security;
Lynne Corn, ANWR;
Carol Glover, Native American energy, general authorizations;
Mark Holt, nuclear energy;
Marc Humphries, federal energy leasing, coal, ANWR;
Larry Kumins, oil and gas, ANWR;
Jim McCarthy, Clean Air Act and MTBE;
Dan Morgan, science programs;
Kyna Powers, hydropower;
Fred Sissine, conservation and renewable energy;
Brent Yacobucci, alternative fuels, climate change.
CRS-8
Provision
Current Law
House
Senate
Energy policy.
No provision.
Sec. 2. It is the sense of the
Congress that the United
States should take all actions
necessary in the areas of
conservation, efficiency,
alternative source, technology
development, and domestic
production to reduce the
United States’ dependence on
foreign energy sources from
58% to 45% by January 1,
2013.
No provision.
Comments
Short Title1
Provision
Current Law
House
Senate
Short titles.
No provision.
Sec. 10001. This division may
be cited as the “Energy Policy
Act of 2003.”
Sec. 1. This Act may be cited
as the “Energy Policy Act of
2003.” Sec. 2. Table of
Contents.
1
Provisions are organized by House section numbers.
Comments
CRS-9
Energy Conservation
Federal Leadership in Energy Conservation
Provision
Current Law
House
Senate
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. 11001. 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. An annual report is
required. Up to $2 million is
authorized.
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.
Energy management
requirements.
Section 202 of Executive
Order 13123 uses 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. 11002. The baseline is
updated from 1985 to
FY2001 and a new goal of
20% reduction is set for 2013.
At that time, DOE is directed
to assess progress and set a
new goal for 2023.
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.
Energy use
measurement and
accountability.
No existing requirement.
Sec. 11003. Federal buildings
are required to be metered or
sub-metered by late 2010, to
help reduce energy costs and
promote energy savings.
Sec. 912. Federal buildings
are required to be metered or
sub-metered by late 2004, to
help reduce energy costs and
promote energy savings.
Comments
CRS-10
Provision
Current Law
House
Senate
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.
No similar provision.
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.
This provision largely
codifies the existing executive
order.
Federal building
performance
standards.
Mandatory energy efficiency
performance standards for
federal buildings are set in
Section 305(a) of P.L. 94-385
and implemented through 10
CFR Part 435.
Sec. 11004. DOE is directed
to set revised energy
efficiency standards for new
federal buildings, 30% below
industry or international
standards.
Sec. 913. DOE is directed to
set revised energy efficiency
standards for new federal
buildings.
Procurement of energy
efficient products.
Section 403 of Executive
Order 13123 directs federal
agencies to purchase lifecycle cost-effective Energy
Star products.
Sec. 11005. 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. 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).
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.
CRS-11
Provision
Current Law
House
Senate
Energy savings
performance contracts.
Section 801(c) of the National
Energy Conservation Policy
Act (NECPA, P.L. 95-619)
provides for federal use of
energy savings performance
contracts (ESPCs) through the
end of FY2002.
Sec. 11006. Federal agencies
are empowered to continue
using energy savings
performance contracts
indefinitely.
Sec. 915. Same.
Energy savings
performance contract
definitions.
Section 804(2) of NECPA
provides definitions for
ESPCs.
No similar provision.
Sec. 916. The definition of
energy savings is expanded to
include a reduction in water
costs.
Review of energy
savings performance
contract program.
No existing requirement.
No similar provision.
Sec. 917. DOE is required to
report to Congress on barriers
to the ESPC program and
ways to improve its
effectiveness.
Federal energy bank.
No existing requirement.
No similar provision.
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.
Voluntary
commitments to reduce
industrial energy
intensity.
While there is no current
statutory authority, industry
energy efficiency programs
have been in place, such as
the former Climate Wise
program at the Environmental
Protection Agency (EPA).
Sec. 11007. 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.
Sec. 921. Same.
Comments
CRS-12
Provision
Current Law
House
Senate
Federal agency
participation in
demand reduction
programs.
Section 546(c) of NECPA
authorizes and encourages
federal agencies to participate
in utility incentive programs
to increase energy efficiency
and water conservation.
Sec. 11008. Federal agencies
are encouraged to participate
in state and regional demandside reduction programs.
No provision.
Advanced Building
Efficiency Testbed.
New program.
Sec. 11009. DOE is required
to create a program to
develop, test, and demonstrate
advanced federal and private
building efficiency
technologies.
No provision.
Increased use of
recovered mineral
component in federally
funded projects
involving procurement
of cement or concrete.
No existing requirement.
Sec. 11010. Requires
federally funded projects to
increase the procurement of
cement and concrete that uses
recovered material.
Sec. 920. Same.
Use of photovoltaic
energy in public
buildings.
No existing requirement.
Sec. 11011. The General
Services Administration
(GSA) is authorized to
encourage use of photovoltaic
solar energy systems in new
and existing buildings.
No provision.
Telecommuting study.
No existing requirement.
Sec. 11012. The Secretary of
Energy shall study the energy
conservation potential of
telecommuting by federal
employees.
No provision.
Comments
CRS-13
Provision
Current Law
House
Senate
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.
No provision.
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.
These provisions largely
codify the existing executive
order.
CRS-14
Energy Assistance and State Programs
Provision
Current Law
House
Senate
LIHEAP and
weatherization
assistance.
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. DOE State Energy
Program funding is
authorized through FY2003
under 42 U.S.C. 6322.
Sec. 11021. Increased
funding is authorized for
LIHEAP and Weatherization
grant programs for FY2004
through FY2006.
Sec. 901. Increased funding is
authorized for LIHEAP and
Weatherization grant
programs for FY2003 through
FY2005.
State energy programs.
Authorization expired.
Sec. 11022. New requirements are set for state energy
conservation goals and plans.
Also, increased funding is
authorized for FY2004
through FY2006 for DOE
State Energy grant programs.
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.
Energy efficient
appliance rebate
programs.
No existing program.
Sec. 11023. DOE is
authorized to fund rebate
programs in eligible states to
support residential end-user
purchases of Energy Star
products.
Sec. 905. DOE is required to
fund rebate programs in
eligible states to support
residential end-user purchases
of Energy Star products.
Comments
CRS-15
Provision
Current Law
House
Senate
Energy-efficient public
buildings.
No existing program.
Sec. 11024. A grant program
is created for energy-efficient
renovation and construction
of local government
buildings.
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.
Low income
community energyefficiency pilot
program.
No existing program.
Sec. 11025. A pilot energyefficiency program is created
for local governments,
community development
corporations, and Native
American economic
development entities.
Sec. 904. A pilot energyefficiency program is created
for community development
corporations and Native
American economic
development entities.
Comments
CRS-16
Provision
Current Law
House
Senate
Rural and Remote
Community Fairness
Act
No provision.
No provision.
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 $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]
Consumer Energy
Commission.
No provision.
No provision.
Sec. 1705. An 11-member
commission is established to
study energy price spikes
since 1990. First meeting is to
be held not more than 60 days
after enactment; report is
called for in 180 days.
Comments
CRS-17
Energy Efficient Products
Provision
Current Law
House
Senate
Energy Star program.
Section 403 of Executive
Order 13123 directs federal
agencies to purchase lifecycle cost-effective Energy
Star products.
Sec. 11041. DOE and EPA
are given statutory authority
for the Energy Star program.
Sec. 926. DOE and EPA are
given statutory authority for
the Energy Star program.
Consumer education
on energy efficiency
benefits of air
conditioning, heating,
and ventilation
maintenance.
No existing program.
Sec. 11042. DOE is required
to implement a public
education program for
homeowners and small
businesses that explains the
energy-saving benefits of
improved maintenance for
certain equipment. Also, the
Small Business Administration is directed to assist
small businesses in becoming
more energy efficient.
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.
Additional definitions.
Energy terms are defined in
various statutes.
Sec. 11043. Definitions are
provided for several types of
home appliances, consumer
products, and energy-using
equipment.
Sec. 923. Terms are defined
for provisions in the
subsequent sections.
Additional test
procedures.
No existing requirement.
Sec. 11044. Procedures are
prescribed for testing the
energy efficiency of several
types of consumer and
commercial products.
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.
Comments
CRS-18
Provision
Current Law
House
Senate
Energy conservation
standards for
additional consumer
and commercial
products.
There are no existing
requirements for standby
mode nor for the additional
products identified.
Sec. 11045. DOE is directed
to issue a rule that determines
whether efficiency standards
shall be set for standby mode
in battery chargers and
external power supplies.
Energy efficiency standards
are set by statute for exit
signs, traffic signals,
torchieres, and distribution
transformers. Also, DOE is
directed to issue a rule that
prescribes efficiency
standards for ceiling fans,
vending machines,
commercial refrigerators and
freezers, and unit heaters.
Sec. 922. DOE is authorized
to set energy efficiency
standards for commercial
appliances and products.
Comments
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.
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. 11046. FTC is required
to issue a rule that addresses
changes to improve the
effectiveness of energy labels
for consumer products. Also,
DOE or FTC is directed to
prescribe labeling requirements for products added by
this section of the bill.
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.
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.
No similar provision
Sec. 927. DOE is directed to
amend the standard within 60
days after enactment.
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-19
Provision
Current Law
House
Senate
Study of energy
efficiency standards.
No existing provision.
Sec. 11047. DOE is directed
to have the National
Academy of Sciences (NAS)
study how the effectiveness
of standards may be
influenced by measures that
focus either on energy enduse or on the full fuel cycle.
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.
Comments
Oil and Gas
Alaska Natural Gas Pipeline
Provision
Current Law
House
Senate
Short title.
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.
Sec. 12001. Short Title is
“Alaska Natural Gas Pipeline
Act of 2003.”
Secs. 701 and 703. This
subtitle may be called the
“Alaska Natural Gas Pipeline
Act of 2003.” Its purpose is
to expedite the completion of
one or more pipelines to
deliver Alaskan natural gas to
the contiguous 48 states.
Comments
CRS-20
Provision
Current Law
House
Senate
Comments
Findings and purposes.
No provision.
Sec. 12002. The pipeline is in
the national interest and
fosters energy security. The
purpose of the bill is to
provide the project with an
alternative statutory
framework to that of the
Alaska Natural Gas
Transportation Act of 1976
(ANGTA), which remains in
effect.
Sec. 702. North Slope gas
supply is declared to be in the
national interest.
While ANGTA remains in
effect, there has been scant
progress in many years. The
bill would offer a fast track
regulatory process, in addition
to reinforcing longstanding
plans for the Alaska Highway
route.
FERC has issued a certificate
for the Alaska Gas Transport
System
Definitions.
No provision.
Sec. 12003. “Alaska natural
gas” is gas derived from north
of 64 degrees North latitude,
and the “Alaska natural gas
transportation project” is a
pipeline that carries Alaska
gas to the Alaska-Canada
border.
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.
This language defines Alaska
North Slope (ANS) gas in
such a way as to preclude a
northern route under the
Beaufort Sea to Canada’s
Mackenzie Delta.
Issuance of certificate
of public convenience
and necessity.
No specific provision.
Sec. 12004. The Federal
Energy Regulatory
Commission (FERC) must
issue a certificate
within 60 days to an applicant
meeting the requirements of
the Natural Gas Act (NGA),
based on public need and
adequate capacity on the
delivery end of the Alaska
pipeline. A proposed
Northern route is denied
certification.
Sec. 704(d). No federal
approval may be granted for
any natural gas pipeline
transiting submerged lands or
the shoreline of the Beaufort
Sea, or for any gas pipeline
crossing the U.S.-Canadian
border north of 68 degrees
north latitude.
This fast-tracks the regulatory
process and excludes the
Beaufort Sea proposal, which
would aid Canadian Arctic
gas development.
CRS-21
Provision
Current Law
House
Senate
Environmental
reviews.
The National Environmental
Policy Act (NEPA) calls for
environmental review and
analysis.
Sec. 12005. Certification of
this project would be a major
federal action NEPA. FERC
is designated as the lead
agency, preparing an
environmental impact
statement and coordinating
other agencies’ activities.
FERC is directed to issue a
draft statement within 12
months.
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.
Pipeline expansion.
No specific provision.
Sec. 12006. FERC must
assure that shipping rates for
expanded capacity would not
result in subsidization of
expansion shippers by
existing shippers. Such rates
must ensure that the added
capacity would not jeopardize
pipeline economics or
environmental and
operational aspects.
Sec. 706. FERC has authority
to order pipeline expansion,
contingent upon approved
tariffs and firm shipper
agreement.
Comments
CRS-22
Provision
Current Law
House
Senate
Federal coordinator
and expedited
certification.
ANGTA, NGA both address
certification procedures.
Sec. 12007. A Federal
Coordinator, appointed by the
President, is established to
ensure that federal agencies
expeditiously discharge
responsibilities for the
pipeline.
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.
Comments
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.
Judicial review.
No provision.
Sec. 12008. Disputes under
this law must be adjudicated
in the U.S. Court of Appeals
for the D.C. Circuit.
Sec. 708. Legal challenge to
agency actions under this bill
are directed to the U.S. Court
of Appeals for the D.C.
Circuit.
State jurisdiction over
in-state delivery of
natural gas.
No provision.
Sec. 12009. Alaska shall
retain jurisdiction over gas
sold within the state, as well
as future intra-state pipelines.
Sec. 709. Intrastate gas
deliveries will not be
regulated by FERC.
This offers Alaskan
consumers the right of first
refusal.
CRS-23
Provision
Current Law
House
Senate
Study of alternative
means of construction.
No provision.
Sec. 12010. If no application
for a certificate is filed within
18 months, the Secretary of
Energy will study pipeline
alternatives and report the
findings to Congress.
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.
Loan guarantee.
No provision.
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.
Clarification of
ANGTA status and
authorities.
No provision.
Sec. 12011. FERC may
modify permits but not
change the fundamental
nature of the pipeline as
designated in the President’s
decision under ANGTA.
Sec. 712. Nothing in this bill
affects ANGTA. DOE has
authority to amend existing
transport plan to bring it up to
date.
Sense of Congress.
No provision.
Sec. 12012. It is the sense of
Congress that the pipeline
will provide significant
economic benefits to the
United States and Canada.
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.
Comments
CRS-24
Provision
Current Law
House
Senate
Participation of small
business concerns.
No provision.
Sec. 12013. It is the sense of
Congress that small business
concerns should participate to
the maximum extent possible.
The General Accounting
Office (GAO) shall study
small business participation
and report to Congress 1 year
after enactment, and at least
once every 5 years thereafter.
No provision.
Alaska pipeline
construction training
program.
A workforce investment
system has been established
in the State of Alaska under
the Workforce Investment
Act of 1998 (112 Stat. 936 et
seq.).
Sec. 12014. The Secretary of
Labor is authorized to make
grants through the Alaska
workforce development
system to train workers for
gas pipeline jobs.
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.
Comments
CRS-25
Strategic Petroleum Reserve
Provision
Current Law
House
Senate
Full capacity of
Strategic Petroleum
Reserve.
The Administration currently
is seeking, subject to market
conditions, to fill the Strategic
Petroleum Reserve (SPR) to
its current capacity of 700
million barrels as
expeditiously as possible.
Sec. 12101. The SPR must be
filled to its current capacity
“by the most practicable and
cost-effective means,”
including collection of
royalty-in-kind oil. The fill
rate should have a minimum
effect on oil markets.
Sec. 609. The President must
fill the SPR to its current
capacity “as soon as
practicable” by the “most
practicable and cost-effective
means.”
Strategic Petroleum
Reserve expansion.
No provision.
Sec. 12102. The Secretary of
Energy must transmit a plan
to Congress for expansion of
the SPR to 1 billion barrels.
Following the plan, the
Secretary is to acquire
property and build the
additional capacity, for which
the legislation would
authorize $1.5 billion.
No comparable provision.
Permanent authority to
operate the Strategic
Petroleum Reserve and
other energy
programs.
SPR operating authority
expires at the end of FY2003
under the Energy Policy and
Conservation Act (EPCA,
P.L. 94-163).
Sec. 12103. Authorization of
the Strategic Petroleum
Reserve is made permanent,
subject to appropriations.
This eliminates the need for
periodic reauthorization.
Sec. 601. Authorization of
the Strategic Petroleum
Reserve is made permanent,
subject to appropriations.
This eliminates the need for
periodic reauthorization.
Comments
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.
CRS-26
Hydraulic Fracturing
Provision
Current Law
House
Senate
Comments
Hydraulic fracturing.
The Safe Drinking Water Act
(SDWA) requires controls on
underground injection of
fluids to protect sources of
drinking water (42 U.S.C.
300h-300h-5). The Act
defines the term
“underground injection” to
mean the subsurface
emplacement of fluids by
well injection, not including
the underground injection of
natural gas for purposes of
storage.
Sec. 12201. SDWA’s
definition of “underground
injection” (42 U.S.C.
300h(d)) is amended to
exclude the injection of
hydraulic fracturing fluids for
oil and gas production.
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.
Hydraulic fracturing involves
the injection of fluids into
underground formations to
enhance the recovery of oil
and natural gas. EPA has not
considered hydraulic
fracturing to fall withing the
regulatory definition of
“underground injection,”
having interpreted it to
encompass only those wells
whose “principal function” is
the underground
emplacement of fluids. In
1997, the U.S. Court of
Appeals, 11th Circuit, found
EPA’s interpretation of
underground injection
inconsistent with the language
of the statute, thus opening
hydraulic fracturing to
regulation under SDWA. The
House provision explicitly
excludes hydraulic fracturing
from the definition of
“underground injection.”
CRS-27
Unproven Oil and Natural Gas Reserves Recovery Program
Provision
Current Law
House
Senate
Comments
Program.
No provision.
Sec. 12301. DOE shall
conduct a technology
demonstration program for
certain oil and gas reservoirs.
No provision.
“Secondary recovery” of oil
from depleted reservoirs may
become an important
component of domestic
supply.
Eligible reservoirs.
No provision.
Sec. 12302. Demonstration
reservoirs are those having
complex geology or low
pressure, or found in tight
sands, coal seams, or shales.
No provision.
Focus areas.
No provision.
Sec. 12303. Focus areas for
the program include coalseams, tight sands, deep
wells, directionally drilled
wells, and enhanced recovery
techniques.
No provision.
Limitation on location
of activities.
No provision.
Sec. 12304. Programs are
limited to onshore U.S. sites.
No provision.
Program
administration.
No provision.
Sec. 12305. Full
responsibility for this
program rests with the
Secretary of Energy, who
shall contract with a
consortium to manage awards
and make project
recommendations.
No provision.
CRS-28
Provision
Current Law
House
Senate
Advisory Committee.
No provision.
Sec. 12306. The Secretary
shall establish an advisory
committee not later than 270
days after enactment.
No provision.
Limits on
participation.
No provision.
Sec. 12307. Only U.S.-owned
entities with production of
less than 1,000 barrels per
day of oil equivalent are
eligible for the demonstration
program, unless it is
otherwise in the U.S.
economic interest.
No provision.
Payments to federal
government.
No provision.
Sec. 12308. 95% of each
demonstration project’s
revenues must go to the
federal government until the
project’s grant is fully repaid.
After the grant is repaid, the
federal government will
continue to receive 5% of the
project’s revenues.
No provision.
Authorization of
appropriations.
No provision.
Sec. 12309. $100 million is
authorized, to remain
available until expended.
No provision.
Public availability of
project results and
methodologies.
No provision.
Sec. 12310. Results of
projects are to be made
public.
No provision.
Sunset.
No provision.
Sec. 12311. September 30,
2010, marks the end of
program authority.
No provision.
Comments
CRS-29
Provision
Current Law
House
Senate
Comments
Definitions.
No provision.
Sec. 12312. “Program
consortium” and other terms
are defined.
No provision.
Provision
Current Law
House
Senate
Comments
Appeals relating to
pipeline construction
projects.
No coordination mechanism
exists linking proceedings
under NGA and other laws
bearing on pipeline
construction issues. Each
agency having jurisdiction
proceeds at its own pace.
Sec. 12401. For appeals about
pipeline construction
proceedings made under laws
other than NGA, agencies are
to use records compiled by
FERC exclusively, and not
hold a new evidentiary
hearing. It is the sense of
Congress that other federal
and state agencies should
coordinate proceedings with
FERC’s.
No provision.
Attempts to keep project on
fast track by avoiding
redundant evidentiary
hearings.
Natural gas market
data transparency.
No provision.
Sec. 12402. FERC is to
establish an electronic
information system providing
public access to interstate gas
trading data (e.g.: price, size,
quantity, time of trade, etc.),
such that markets operate
with reliable information.
No provision.
Addresses post-ENRON need
for confidence in gas markets.
Would establish a transparent
open access marketplace
where gas could be traded
free of manipulation.
Miscellaneous
CRS-30
Provision
Current Law
House
Senate
Oil and gas exploration
and production
defined.
The term “oil and gas
exploration and production”
is used in section 502 of the
Federal Water Pollution
Control Act (33 U.S.C. 1362).
Sec. 12403. “Oil and gas
exploration and production,”
as used in the Federal Water
Pollution Control Act,
includes all drill-site activity,
including preparation.
No provision.
R&D for remediation
of groundwater from
energy activities.
No specific provision.
No provision.
Sec. 1262. DOE shall
conduct research to improve
methods for environmental
restoration of groundwater
contaminated by oil and gas
production and other energy
activities. Annual funding of
$10 million is authorized for
FY2003 through 2006.
Complex well
technology testing
facility.
No provision.
Sec. 12404. DOE shall
establish a Complex Well
Technology Testing Facility
at the Rocky Mountain
Oilfield Testing Center to
increase the range of drilling
capability to 50,000 feet.
No provision.
Pipeline Safety
Improvement Act of
2002.
Provisions for pipeline safety
and security are found at 49
U.S.C 60101.
No provision.
Sec. 741 -783. the “Pipeline
Safety Improvement Act of
2003.”
Comments
This portion of the bill was
largely enacted into law as
P.L. 107-355, signed
December 17, 2002.
CRS-31
Provision
Current Law
House
Senate
Energy infrastructure
across the Great Lakes.
No provision.
No provision.
Sec. 1706. The Secretary of
Energy is to conduct a study
of the environmental impacts
of any energy infrastructure
(including gas pipelines)
transiting the Lakes and how
they might be minimized. An
NAS advisory committee
shall be established.
Comments
CRS-32
Hydroelectric
Alternative Conditions
Provision
Current Law
House
Senate
Comments
Alternative conditions
and fishways
(continued in next
row).
The Federal Power Act (FPA,
16 U.S.C. 791a, et seq.)
authorizes the Federal Power
Commission, later renamed
the Federal Energy
Regulatory Commission
(FERC), to license nonfederal hydropower facilities.
Sections 4(e) and 18 of the
Federal Power Act authorize
certain federal agencies to
impose conditions or
prescribe fishway
construction on hydropower
license applicants.
Sec. 13001. 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 they
“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. (Continued in
next row.)
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 (Continued in next
row.)
See CRS Issue Brief IB10122,
Hydropower License
Conditions and the
Relicensing Process.
CRS-33
Provision
Current Law
House
Senate
Comments
Alternative conditions
and fishways
(continued from row
above).
(See row above.)
Sec. 13001. (continued from
row above) When issuing a
condition, the agency must
give equal consideration to
the effects of each condition
on energy supply,
distribution, cost, and use;
flood control; navigation;
water supply; and air quality
(in addition to the
preservation of other aspects
of environmental quality).
FERC may refer the agency’s
decision to the Commission’s
Dispute Resolution Service
(DRS). The DRS issues a
non-binding advisory. No
provision in this section
prohibits other interested
parties from proposing
alternative conditions.
(continued from row above)
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.
(See row above.)
Time of filing
application.
License applicants must file
24 months prior to expiration
of old license (16 U.S.C.
808(c)(1)).
No provision.
Sec. 301 (c). License
applicants must file 36
months prior to expiration for
licenses that expire in 2008
and thereafter.
This provision is 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.
CRS-34
Additional Hydropower
Provision
Current Law
House
Senate
Hydroelectric
production incentives.
No provision.
Sec. 13201. The Secretary of
Energy shall make incentive
payments to non-federal
owners or operators of
hydroelectric generating
facilities added to existing
dams or conduits within 10
years of the date of
enactment. Payments of 1.8
cents per kwh, up to a total of
$750,000/year per facility,
may be made for up to 10
fiscal years after a facility
begins operating.
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
(also similar to Sec. 16072).
Hydroelectric
efficiency
improvement.
No provision.
Sec. 13202. The Secretary of
Energy shall make incentive
payments to the owners or
operators of hydroelectric
facilities who make capital
improvements on existing
facilities that improve
efficiency by at least 3%.
Payments shall not exceed
10% of the improvement cost
and shall not exceed
$750,000 at any single
facility.
No provision.
Small hydroelectric
power projects.
The Public Utility Regulatory
Policies Act of 1978 defines
existing dams as those
completed by April 20, 1977
(PURPA, 16 U.S.C. 2078).
Sec. 13203. The date on or
before which a dam must be
constructed to qualify as an
existing dam is changed to
March 4, 2003.
No provision.
Comments
CRS-35
Provision
Current Law
House
Senate
Increased hydroelectric
generation at existing
federal facilities.
No provision.
Sec. 13204. Within 2 years
after the date of enactment,
the Secretary of Energy will
submit studies, for each water
basin, that identify and
describe: 1) opportunities to
improve efficiency of
hydropower generation, 2)
opportunities to improve
efficiency of the use of water
supplied or regulated by
federal projects, 3)
opportunities to create
additional hydropower
generating capacity at
existing facilities, and 3) a
preliminary assessment of the
costs, and economic and
environmental consequences,
of such measures. The
Secretary of Energy may
choose not to perform new
studies when recent studies
exist.
No provision.
Comments
CRS-36
Nuclear Matters
Price-Anderson Act Amendments
Provision
Current Law
House
Senate
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. 14001. This subtitle
(sections 14001-14015) may
be cited as the “PriceAnderson Amendments Act
of 2003.”
Sec. 501. This subtitle
(sections 501-509) may be
cited as the “Price-Anderson
Amendments Act of 2003.”
Extension of
indemnification
authority for NRC
licensees.
Nuclear Regulatory
Commission (NRC) authority
to provide indemnification
under Price-Anderson to new
reactors and other licensees
expires December 31, 2003
(AEA Sec. 170 c.).
Sec. 14002(a). NRC
indemnification authority is
extended through August 1,
2017.
Secs. 502(a). NRC
indemnification authority is
extended through August 1,
2012.
Without the extension,
existing reactors would
continue to be covered by
Price-Anderson, but new
reactors would not.
Extension of
indemnification
authority for DOE
contractors.
DOE authority to indemnify
nuclear contractors against
radiological damage claims
by members of the public
expires December 31, 2004
(AEA Sec. 170 d.).
Sec. 14002(b). DOE’s
indemnification authority is
extended through August 1,
2017.
Sec. 502(b). DOE’s
indemnification authority is
extended indefinitely.
Without an extension, new
DOE contracts would not
include Price-Anderson
indemnification, although
existing contracts would still
be covered.
Extension of
indemnification
authority for nonprofit
educational
institutions.
NRC authority to indemnify
nonprofit educational
institutions expired August 1,
2002 (AEA Sec. 170 k).
Sec. 14002(c). NRC
indemnification authority for
nonprofit educational
institutions is extended
through August 1, 2017.
Secs. 502(c). NRC
indemnification authority for
nonprofit educational
institutions is extended
through August 1, 2012.
Without an extension, new
NRC reactor licenses for
nonprofit educational
institutions are not covered,
but coverage continues for
licenses issued before August
1, 2002.
CRS-37
Provision
Current Law
House
Senate
Comments
Maximum commercial
reactor assessment.
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 $10.9 billion.
Compensation contributions
are paid at a rate of no more
than $10 million per reactor
per year (AEA Sec. 170 b.).
Sec. 14003. 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.
No provision.
Total available reactor
incident compensation
increases would be about $10
billion under the House
provision.
Department of Energy
liability limit.
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.).
Sec. 14004. The DOE
contractor liability limit is
raised to $10 billion, subject
to an inflation adjustment
under Section 14007.
Sec. 503. The DOE
contractor liability limit is
raised to $10 billion, subject
to an inflation adjustment
under Section 506.
Incidents outside the
United States.
The liability limit for nuclear
incidents outside the United
States is $100 million (AEA
Sec. 170 d., e.).
Sec. 14005. The limit is raised
to $500 million.
Sec. 504. The limit is raised
to $500 million.
Reports on PriceAnderson extension or
modification.
No future reports on this
subject required.
Sec. 14006. DOE and the
Nuclear Regulatory
Commission (NRC) shall
submit reports to Congress by
August 1, 2013, to
recommend continuation or
modification of the PriceAnderson Act.
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.
CRS-38
Provision
Current Law
House
Senate
Comments
Inflation adjustment.
Every five years NRC 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. 14007. 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.
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.
Both versions would eliminate
the existing link between
commercial reactor and DOE
contractor liability limits,
requiring a separate inflation
adjustment for DOE
contractors.
Price-Anderson
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. 14008. 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.
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.
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.
Effective date.
No provision.
Sec. 14009. The increased
nuclear liability limits in this
subsection shall apply only to
accidents that occur after the
date of enactment.
Sec. 509. The increased
nuclear liability limits in this
subsection shall apply only to
accidents that occur after the
date of enactment.
CRS-39
Provision
Current Law
House
Senate
Prohibition on
assumption by United
States Government of
liability for certain
foreign accidents.
No provision.
Sec. 14010. The federal
government may not accept
liability for nuclear accidents
in nations found to support
terrorism.
No provision.
Secure transfer of
nuclear materials.
No provision.
Sec. 14011. Nuclear materials
transferred from NRC- or
state-licensed facilities, or
from countries with U.S.
nuclear cooperation
agreements, must be
accompanied by a shipping
manifest. Every worker
involved in such shipments
must have undergone a
federal security background
check. Such materials may
be shipped only to licensed
facilities, other “appropriate”
federal facilities, or countries
with U.S. nuclear cooperation
agreements.
No provision.
Comments
CRS-40
Provision
Current Law
House
Senate
Nuclear facility
threats.
AEA provides general
authority for NRC security
regulation.
Sec. 14012. In consultation
with NRC and other
appropriate federal agencies,
the President shall identify
specific types of security
threats to nuclear facilities.
The President shall issue a
report on actions taken or to
be taken to address the
identified threats, and NRC
shall issue regulations to
protect against the threats.
NRC shall periodically
conduct force-on-force
exercises to test nuclear
facility security. Release of
security information shall be
controlled, consistent with
AEA requirements.
No provision.
Unreasonable risk
consultation.
No provision.
Sec. 14013. Before providing
Price-Anderson coverage to a
new reactor, NRC must
consult with the Secretary of
Homeland Security about
whether the reactor’s design
and location provide adequate
public protection in case of a
terrorist attack. Before
renewing a nuclear plant
license, NRC must consult
with the Secretary of
Homeland Security about the
plant’s evacuation planning.
No provision.
Comments
CRS-41
Provision
Current Law
House
Senate
Recovery of payments
for intentional DOE
contractor misconduct.
No provision.
Sec. 14014. 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.
No provision.
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. 14015. 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. DOE authority to
remit fines paid by nonprofit
educational institutions is
repealed.
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.
Comments
CRS-42
Miscellaneous Matters
Provision
Current Law
House
Senate
Commercial reactor
license period.
For a commercial nuclear
reactor that receives a
combined construction and
operating license from 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. 14021. The 40-year
license period for a combined
license will not begin until
NRC determines that the
completed reactor is ready to
start operating.
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.
Nuclear Regulatory
Commission meeting
transcripts.
No provision.
Sec. 14022. 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.
No provision.
NRC training
program.
No specific provision.
Sec. 14023. Funding is
authorized for NRC to carry
out a training and fellowship
program to develop critical
nuclear safety skills.
No provision.
Cost recovery from
Government agencies.
Federal agencies must pay
fees to NRC for certain
licensed activities (AEA Sec.
161 w.).
Sec. 14024. NRC may impose
licensing and other cost-based
fees on all NRC-licensed
activities conducted by other
federal agencies.
No provision.
Comments
CRS-43
Provision
Current Law
House
Senate
Elimination of pension
offset for critical NRC
personnel.
No provision.
Sec. 14025. 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.
Carrying of firearms
by licensee employees.
NRC employees and
contractors may carry
firearms and make arrests to
protect U.S. property (AEA
Sec. 161 k.).
Sec. 14026. Authority to carry
firearms and make arrests is
extended to employees of
nuclear power plants and
other NRC-regulated facilities
and their contractors.
No provision.
Unauthorized
introduction of
dangerous weapons.
NRC may regulate the entry
of weapons or dangerous
materials into NRC facilities
(AEA Sec. 229 a.).
Sec. 14027. NRC controls on
weapons and dangerous
materials are extended to
nuclear plants and other
NRC-regulated facilities.
No provision.
Sabotage of nuclear
facilities or fuel.
Any person who intentionally
damages an NRC-licensed
facility may be fined $10,000
and imprisoned for 10 years
(AEA Sec. 236 a.).
Sec. 14028. Maximum
penalties for sabotage are
increased to $1 million and
life imprisonment without
parole.
No provision.
Cooperative research
and development and
special demonstration
projects for the
uranium mining
industry.
No specific provisions.
Sec. 14029. Funding is
authorized for cost-shared
research between DOE and
domestic uranium producers
on in-situ leaching mining
technologies and related
environmental restoration
technologies.
No provision.
Comments
The House provision would
counter some state laws that
preclude private guard forces
from utilizing some weapons.
The House language clarifies
that the penalties apply to
facilities “certified” as well as
“licensed” by NRC, and also
to sabotage to facilities under
construction.
CRS-44
Provision
Current Law
House
Senate
Government uranium
sales.
DOE may sell its uranium
stockpiles under certain
conditions (42 U.S.C. 2297h10).
Sec. 14030. With certain
exceptions, DOE uranium
sales are restricted to 3
million pounds per year from
2004-2009, rising to 10
million pounds per year after
2012. DOE may transfer
9,550 metric tons of uranium
to USEC Inc.
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.
Exports of highly
enriched uranium for
medical isotope
production.
Highly enriched uranium
(HEU) cannot be exported
unless the foreign recipient
agrees to switch to low
enriched uranium (LEU) as
soon as possible and suitable
LEU fuel is actively under
development (AEA Sec. 134).
Sec. 14031. HEU may be
exported to Canada, Belgium
France, Germany, and the
Netherlands for production of
medical isotopes. HEU
exports also may be
authorized to other countries
that meet additional criteria.
All HEU recipients must
agree to switch to suitable
LEU fuel if it becomes
available.
No provision.
Highly enriched
uranium diversion
threat report.
No provision.
Sec. 14032. DOE shall submit
a report to Congress on
reducing the threat of stolen
or diverted highly enriched
uranium.
No provision.
Comments
The current limit on HEU
exports, known as the
“Wyden Amendment,” is
intended to ensure that
foreign reactor operators
cooperate with U.S. efforts to
convert all HEU reactors to
LEU. Supporters of the
exemption contend that the
existing restrictions could
disrupt production of medical
isotopes from foreign reactors
fueled with HEU.
CRS-45
Provision
Current Law
House
Senate
Whistleblower
protection.
Employees of nuclear power
plants and other NRC licensee
and employees of DOE
contractors may file
complaints with the Secretary
of Labor if they are fired or
punished for raising concerns
about violations of the
Atomic Energy Act (42
U.S.C. 5851).
Sec. 14033. DOE and NRC
employees are given the same
“whistleblower” protection as
employees of contractors and
licensees. An employee
whose complaint does not
receive a final decision by the
Secretary of Labor within 180
days may take the case to
federal court.
No provision.
Preventing the misuse
of nuclear materials
and technology.
No provision.
Sec. 14034. No U.S. nuclear
materials or technology may
be exported to any country
that, as of September 11,
2001, had been determined by
the State Department to be a
supporter of international
terrorism.
No provision.
Limitation on DOE
reimbursement of legal
fees.
No provision.
Sec. 14035. Except as
required by existing contracts,
DOE shall not reimburse its
contractors for legal expenses
incurred in defending against
“whistleblower” complaints
that are ultimately upheld.
No provision.
Transfer of West
Valley nuclear site to
DOE.
No provision.
Sec. 14036. DOE shall
transmit to Congress by the
end of 2003 a plan for taking
ownership of the West Valley
nuclear site from the State of
New York.
No provision.
Comments
The House provision would
block implementation of a
1994 agreement under which
North Korea was to receive a
U.S.-designed nuclear power
plant in return for abandoning
its nuclear weapons program.
DOE is cleaning up nuclear
fuel reprocessing facilities at
the site, with the State of New
York paying 10% of the cost.
But there has been a dispute
between DOE and the state
about future cleanup
responsibilities.
CRS-46
Provision
Current Law
House
Senate
Study of developing
commercial nuclear
power plants at DOE
sites.
No provision.
Sec. 14037. DOE shall study
the feasibility of developing
commercial nuclear power
plants at existing DOE sites.
No provision.
Thorium cleanup
reimbursement.
DOE is authorized to
reimburse up to $365 million
in government-related
cleanup costs to the owner of
a thorium processing site (42
U.S.C. 2296a).
No provision.
Sec. 512. The thorium
reimbursement authorization
is raised from the previous
level of $140 million to $365
million.
Senate language is nearly
identical to thorium
reimbursement provisions in
P.L. 107-222, signed August
21, 2002, which raised
thorium reimbursement to
$365 million.
Fast Flux Test Facility.
No comparable provision.
No 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.
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
began dismantling the facility
April 7, 2003.
No provision.
Sec. 516. DOE shall
decontaminate and
decommission the sodiumcooled test reactor in
northwest Arkansas.
Reactor
Decommissioning Pilot
Program.
Comments
CRS-47
Provision
Current Law
House
Senate
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).
No provision.
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.
Protection of reactor
decommissioning
funds.
No specific provision.
No 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.
Elimination of pension
offset for critical NRC
personnel.
No provision.
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.
NRC training
program.
No specific provision.
No provision.
Sec. 542. Funding is
authorized for NRC to carry
out a training and fellowship
program to develop critical
nuclear safety skills.
Comments
CRS-48
Vehicles and Fuels
Energy Policy Act Amendments
Provision
Current Law
House
Senate
Credit for substantial
contribution toward
noncovered fleets.
Sec. 508 of the Energy Policy
Act of 1992 (EPACT) (42
U.S.C. 13258) requires that
state governments and
producers and suppliers of
alternative fuels (including
electricity producers) include
alternative fuel vehicles as a
certain percentage of their
new light-duty vehicle
purchases. The requirement
is 75% for states and 90% for
fuel providers.
Sec. 15011. Vehicle purchase
credits are granted to covered
entities that make a
“substantial contribution” to
the purchase of alternative
fuel vehicles in non-covered
fleets. “Substantial” is
defined as $15,000 or more in
cash or in-kind services.
Double credits are given for
the purchase of medium- or
heavy-duty vehicles.
Sec. 819(q). Similar
provision.
Credit for alternative
fuel infrastructure.
No provision.
Sec. 15012. Vehicle purchase
credits are granted to covered
entities that invest $25,000 or
more in fueling infrastructure
for alternative fuel vehicles.
Sec. 819(r). Similar
provision.
Credit for hybrid
vehicles.
No provision.
No similar provision.
Sec. 819(p). Fleet operators
may generate credits through
the purchase of hybrid
electric vehicles.
Comments
Currently, hybrid vehicles are
not considered alternative fuel
vehicles because their
primary fuel is gasoline.
CRS-49
Provision
Current Law
House
Senate
Comments
Alternative fueled
vehicle report.
The Energy Policy Act of
1992 (EPACT) requires that,
of the vehicles purchased by
federal and state agencies and
alternative fuel providers in a
given year, a percentage must
be alternative fuel vehicles
(42 U.S.C. 13220).
Sec. 15013. The Secretary of
Energy must report to
Congress on the effectiveness
of Titles III, IV, and V of
EPACT (regarding alternative
fuel vehicles and fleets). The
report must analyze the
availability and cost of
alternative fuels, alternative
fuel vehicles, and refueling
infrastructure (also see Sec.
15046).
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.
Under current law, there is no
specific requirement to use
alternative fuels in these
vehicles.
Sec. 15014. Agencies must
allocate the incremental costs
of alternative fuel vehicles
across the entire fleet.
No provision.
Sec. 310 of EPACT requires
each federal agency to report
annually on its compliance
with the federal alternative
fuel vehicle requirements (42
U.S.C. 13218).
Allocation of
incremental costs.
Sec. 303 of EPACT (42
U.S.C 13212) requires that
75% of covered light-duty
vehicles purchased by federal
agencies be alternative fuel
vehicles. Sec. 303(c) allows
agencies to allocate the
incremental cost of those
vehicles (the cost difference
between the alternative fuel
vehicle and a comparable
gasoline or diesel vehicle)
across the whole vehicle fleet.
CRS-50
Provision
Current Law
House
Senate
Comments
Temporary biodiesel
credit expansion.
Sec. 311 of EPACT (42
U.S.C. 13220) allows fleet
operators to meet up to 50%
of the alternative fuel vehicle
purchase requirement through
the use of biodiesel fuel.
However, fleet operators may
not generate credits for future
years through the use of
biodiesel.
No similar provision.
Sec. 817. Fleet operators may
claim alternative fuel vehicle
credits for excess purchases
of biodiesel fuel. Further,
fleet operators may use
biodiesel fuel to meet up to
100% of required purchases
in a given year.
Neighborhood electric
vehicles.
EPACT (42 U.S.C. 13211)
defines the term “alternative
fuel vehicle.”
No similar provision.
Sec. 818. Neighborhood
electric vehicles may be
treated as alternative fuel
vehicles for compliance and
tax purposes.
Neighborhood electric
vehicles (NEVs) are small
electric vehicles that are
certified for low speeds.
Federal agency
ethanol-blended
gasoline and biodiesel
purchasing
requirement.
Sec. 306 of EPACT (42
U.S.C. 13215) refers to an
expired provision of the Act.
No similar provision.
Sec. 820A. A new section
306 of EPACT is created.
Federal agencies must
purchase ethanol-blended
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.
In some places, mainly in the
Midwest, ethanol-blended
gasoline comprises the
majority of retail gasoline.
CRS-51
Advanced Vehicles
Provision
Current Law
House
Senate
Definitions.
Various related definitions are
found in multiple statutes.
Sec. 15021. Several classes of
vehicles are defined,
including “alternative fuel
vehicle,” “neighborhood
electric vehicle,” and “ultralow sulfur diesel vehicle.”
No similar provision.
Pilot program.
The Department of Energy,
through the Clean Cities
Program, provides technical
and educational assistance to
cities wishing to expand the
use of alternative fuel
vehicles.
Sec. 15022. A grant program
is established to provide
grants for up to 10 separate
projects. Grants may assist in
the purchase of alternative
fuel and advanced technology
vehicles or the installation of
alternative fuel refueling
infrastructure. Eligible
grantees are state
governments, local
governments, and
metropolitan transit
authorities. A maximum of
$20 million may be granted to
any single project.
No similar provision.
Comments
CRS-52
Provision
Current Law
House
Senate
Reports to Congress.
No provision.
Sec. 15023. The Secretary of
Energy must submit a report
to Congress listing the
grantees and other applicants,
as well as detailing the grant
selection process. Three
years after enactment, the
Secretary must submit to
Congress annual evaluations
of the effectiveness of the
program.
No similar provision.
Authorization of
appropriations.
No provision.
Sec. 15024. $200 million is
authorized to carry out the
program.
No similar provision.
Comments
Hydrogen Fuel Cell Heavy-Duty Vehicles
Provision
Current Law
House
Senate
Definition and
Findings.
No provision.
Secs. 15031 and 15032.
Terms are defined and
congressional findings are
listed.
No provision.
Comments
CRS-53
Provision
Current Law
House
Senate
Hydrogen fuel cell
buses.
No provision.
See Sec. 15033 and Sec.
23002.
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.
Bus replacement.
Sec. 5111 of the
Transportation Equity Act for
the 21st Century (TEA-21,
P.L. 105-178) established the
Advanced Vehicle
Technologies Program
(AVP), which promotes
advanced technology
development through
contracts, grants, and
cooperative agreements.
Sec. 15033. The Secretary of
Transportation, through AVP,
is required to establish four
projects to demonstrate
hydrogen-fueled fuel cell
buses (also see Sec. 23002).
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.
Comments
While TEA-21 authorized a
total of $250 million over five
years for AVP, only $10
million total was appropriated
in FY1999 and FY2000.
Congress has not appropriated
funds for AVP since FY2000.
CRS-54
Provision
Current Law
House
Senate
Comments
Authorization of
appropriations.
Sec. 5111 of TEA-21
authorized $50 million
annually for AVP in FY1999
through FY2003. No funds
are authorized in FY2004 or
later.
Sec. 15034. A total of $50
million is authorized for
FY2004 though FY2008.
Funds are authorized for the
above project only.
No provision.
As was stated above,
Congress has not appropriated
funds for AVP since FY2000.
Provision
Current Law
House
Senate
Comments
Railroad efficiency.
No provision.
Sec. 15041. A public-private
research partnership is
established for the
development and
demonstration of locomotive
engines that increase fuel
economy, reduce emissions,
and lower costs. A total of
$90 million is authorized for
FY2004 through FY2006.
Sec. 1214. Similar to the
House provision, except that a
total of $130 million is
authorized for FY2003 and
FY2004.
Mobile emission
reductions trading and
crediting.
No provision.
Sec. 15042. 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 attaining and
maintaining air quality
standards.
No provision.
Miscellaneous
CRS-55
Provision
Current Law
House
Senate
Idle reduction
technologies.
No provision.
Sec. 15043. DOE is required
to study potential fuel savings
from reducing long-duration
idling of heavy-duty vehicles.
EPA is required to study
whether existing models of
air emissions accurately
reflect emissions from idling
vehicles. Further, EPA is
required to study whether
emissions reduction credits
should be granted for the
installation of idle elimination
systems.
Sec. 822. DOE is required to
conduct a similar study.
Once the study is completed,
the Secretary of Energy has
the authority to require the
installation of idle-reduction
systems on all new heavyduty vehicles. Further, EPA
is not required to assess its
models under the Senate
provision.
Study of aviation fuel
conservation and
emissions.
No provision.
Sec. 15044. Within 60 days of
enactment, the Administrator
of the Federal Aviation
Administration and the
Administrator of EPA are
required to commence a study
to determine the impact of
aircraft emissions on air
quality in ozone
nonattainment areas. The
study, which is to culminate
in a report to Congress within
180 days of commencement,
is to focus on the impact of
emissions by aircraft idling at
airports, with
recommendations concerning
how such emissions may be
reduced.
No provision.
Comments
CRS-56
Provision
Current Law
House
Senate
Diesel fueled vehicles.
DOE conducts research on
advanced vehicle emissions
systems under its general
research authority.
Sec. 15045. The Secretary of
Energy is directed to
accelerate efforts to improve
diesel vehicle combustion and
after-treatment technologies.
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.)
Waivers of alternative
fueled vehicle fueling
requirement.
Sec. 400AA (a)(3)(E) of the
Energy Policy and
Conservation Act (EPCA)
requires that dual fuel
vehicles (vehicles capable of
using either an alternative
fuel or a conventional fuel)
purchased by the federal
government operate on
alternative fuels where
practicable.
Sec. 15046. EPCA is
amended so that agencies
must receive a waiver by the
Secretary of Energy to be
exempted from the fueling
requirement (also see Sec.
15013).
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.
Total integrated
thermal systems.
No existing provision.
Sec. 15047. DOE is directed
to study the potential for
integrated thermal systems to
reduce oil demand.
No provision.
Comments
Under current law, there is no
specific requirement to use
alternative fuels in these
vehicles.
CRS-57
Provision
Current Law
House
Senate
Oil bypass filtration
technology.
No provision
Sec. 15048. The Secretary of
Energy and the Administrator
of EPA are required to study
the potential oil savings from
oil bypass filtration
technology, and to assess the
feasibility of using the
technology in federal vehicle
fleets.
No similar provision.
Natural gas condensate
study.
No provision.
Sec. 15049. The Secretary of
Energy is required to study
the possible applications and
potential benefits of fuels
derived from natural gas
condensate.
No similar provision.
Study on reducing
petroleum
consumption, and
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. 15050. The General
Services Administration
(GSA) is directed to study the
merits of setting performance
measures to help reduce oil
consumption by federal fleets.
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.
Conserve by Bicycling
Program.
No existing provision.
Sec. 15051. The Department
of Transportation is directed
to conduct a pilot bicycling
program and report on it.
Sec. 823. Similar to the
House provision, except that a
total of $5.5 million is
authorized.
Comments
The targets specified in
existing law have not been
met.
CRS-58
Provision
Current Law
House
Senate
Comments
Exception to HOV
passenger
requirements for
alternative fuel
vehicles.
States may permit exemptions
from high occupancy vehicle
(HOV) restrictions for
inherently low emission
vehicles (ILEV) (23 U.S.C.
102(a)(2)).
No similar provision.
Sec. 812. States are permitted
to exempt one-passenger
alternative fuel vehicles from
HOV restrictions.
Some alternative fuel vehicles
do not meet the ILEV
standards currently required
for the exemption.
Comments
Electricity
Transmission Capacity
Provision
Current Law
House
Senate
Transmission
infrastructure
improvement
rulemaking.
FERC must approve
transmission rates charged by
utilities. These rates must be
just and reasonable (16
U.S.C. 824d).
Sec. 16011. FERC is required
to establish a rule to create
incentive-based transmission
rates. Under the rule, FERC
must approve a transmission
organization’s request that
new transmission facilities
that increase the transfer
capability of the system be
participant-funded.
No provision.
CRS-59
Provision
Current Law
House
Senate
Comments
Siting of interstate
electrical transmission
facilities
(continued in next
row).
Transmission siting is the
responsibility of the states.
Sec. 16012. The Secretary of
Energy will conduct a study
of electric transmission
congestion every three years.
Based on the findings, the
Secretary of Energy may
designate a geographic area
as being congested. Under
certain conditions, FERC is
authorized to issue
construction permits. Permit
holders will be allowed to
petition in District Court to
acquire rights-of-way through
the exercise of the right of
eminent domain. Any
exercise of eminent domain
authority is considered to be
takings of private property for
which just compensation is
due. This section does not
apply to the Electric
Reliability Council of Texas
(ERCOT). An applicant for
federal authorization to site
transmission facilities on
federal lands may request that
the Department of Energy be
the lead agency to coordinate
environmental review and
other federal authorization.
(continued in next row)
No provision.
Under proposed FPA section
216(d) there is no specific
comment period required.
New FPA section 216(e)
appears to be exercising
federal power of eminent
domain to cross private land.
New FPA section 216(g) does
not clearly state whether
companies using
condemnation authority to
cross private land must
comply with NEPA. New
section 216(h) does not state
whether property owners will
be required to reimburse
compensation if land is
transferred back to the owner.
New FPA section 216(j)(1)
gives DOE new authority to
prepare environmental
documents and appears to
give DOE additional
decision-making authority for
rights-of-way and siting on
federal lands. This would
appear to give DOE input into
the decision process for
creating rights-of-way. New
FPA section 216(l) would not
apply to monuments that are
not managed by the National
Park Service.
Federal Land Policy and
Management Act (43 U.S.C.
1763).
CRS-60
Provision
Current Law
House
Siting of interstate
electrical transmission
facilities (continued
from row above).
(See row above.)
Sec. 16012 (continued from
row above). Once a
completed application is
submitted, all related
environmental reviews must
be completed within 1 year
unless existing federal law
environmental review
document is to be used for all
decisions on the proposed
project. Review under
section 503 of the Federal
Land Policy and Management
Act may be streamlined by
relying on prior analyses.
Any denial of federal rightsof-way may be appealed by
the applicant or relevant state
to the Secretary of Energy.
The Secretary of Energy must
issue a decision within 90
days of the appeal’s filing.
States may enter into
interstate compacts for the
purposes of siting
transmission facilities and the
Secretary of Energy may
provide technical assistance.
Senate
Comments
(See row above.)
CRS-61
Provision
Current Law
House
Senate
Comments
Study of siting an
electric transmission
system on Amtrak
right-of-way.
None.
No provision.
Sec. 1703. The Secretary of
Energy must contract with
Amtrak to study the
feasibility of building and
operating a new electric
transmission system on the
Amtrak right-of-way in the
Northeast Corridor.
Transmission
enhancements.
The Federal Power Act (16
U.S.C. 791a and following)
gives FERC authority to order
interconnections with the
transmission system and
transmission capacity
additions necessary to support
the interconnection (Section
210). Section 212 allows the
costs of transmission system
enlargement to be included in
the rates for wholesale
transmission services.
Sec. 16013. FERC is to
exercise its authority under
the Federal Power Act to
encourage technologies that
will increase the efficiency
and transfer capability of
transmission networks.
Sec. 210. The Federal
Government is to be attentive
to transmission issues,
including investment,
efficiency, and enhancements,
that could be addressed
through government policy.
Investment in the
transmission system has not
kept pace with increases in
generation. The House
provision is intended to
increase the capacity of
existing lines through the
implementation of
technology. The Senate
provision is intended to use
government policy to
facilitate improvements in the
transmission system.
Bonneville Power Administration
Provision
Current Law
House
Senate
Comments
Bonneville Power
Administration Bonds.
Current BPA borrowing
authority is $4.45 billion (16
U.S.C 838k, P.L. 108-7).
No similar provision
Sec. 272. Bonneville Power
Administration’s borrowing
authority is increased by $1.3
billion to provide
transmission system
improvements.
In FY2003, BPA’s borrowing
authority increased by $700
million. BPA is not requesting
increased borrowing authority
in FY2004
CRS-62
Transmission Operation
Provision
Current Law
House
Senate
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. 16021. 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, for distribution
utilities, and for utilities that
own or operate transmission
facilities that are not
necessary to facilitate a
nationwide interconnected
transmission system. FERC
may remand transmission
rates to an unregulated
transmitting utility if the rates
do not comply with this
section.
Sec. 205. Similar provision.
Often referred to as “FERClite.”
CRS-63
Provision
Current Law
House
Senate
Regional transmission
organizations.
No current law.
Sec. 16022. It is the sense of
the Congress that utilities
should voluntarily become
members of regional
transmission organizations. It
is the sense of the Congress
that FERC should provide
incentive rates for
transmission for those utilities
that join regional transmission
organizations. FERC is
required to report to Congress
within 120 days of enactment
the status of all regional
transmission organization
applications. Federal utilities
(power marketing
administrations or Tennessee
Valley Authority) are
authorized to participate in
regional transmission
organizations.
No provision.
Policy on regional
coordination.
No current law.
No provision.
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.
Comments
CRS-64
Provision
Current Law
House
Senate
Federal support for
regional coordination.
No current law.
No provision.
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.
Native load.
Section 201 of the Federal
Power Act gives FERC
jurisdiction over “the
transmission of electric
energy in interstate commerce
and the sale of such energy at
wholesale in interstate
commerce.” Section 205 of
the Federal Power Act
prohibits utilities from
granting “undue preference or
advantage to any person or
subject any person to any
undue prejudice or
disadvantage” (16 U.S.C.
824).
Sec. 16023. A load-serving
entity is entitled to use its
transmission facilities or
transmission rights to serve its
existing customers before it
is obligated to make its
transmission capacity
available for other uses.
No provision.
Comments
This section is intended to
clarify that reserving
transmission for existing
customers is not considered
unduly discriminatory.
CRS-65
Reliability
Provision
Current Law
House
Senate
Comments
Electric reliability
standards.
No current law.
Sec. 16031. FERC is required
to issue a rule to implement
requirements of this section
not later than 180 days after
enactment. FERC is required
to certify an electric
reliability organization
(ERO). The FERC-approved
electric reliability
organization will develop and
enforce reliability standards
for the bulk-power system.
Standards are enforceable by
the electric reliability
organization. The provision
does not apply to Alaska or
Hawaii.
Sec. 206. Similar provision
This would give an electric
reliability organization
(currently the North
American Electric Reliability
Council (NERC)) the primary
authority to develop
reliability standards.
Access to transmission
by intermittent
generators.
No specific law.
No provision.
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.
CRS-66
Public Utility Holding Company Act Amendments
Provision
Current Law
House
Senate
Short title.
The Public Utility Holding
Company Act of 1935
(PUHCA, 15 U.S.C. 79 et
seq.).
Sec. 16041. This subtitle may
be cited as the “Public Utility
Holding Company Act of
2003.”
Sec. 221. This subtitle may be
cited as the “Public Utility
Holding Company Act of
2003.”
Definitions.
Various terms are defined at
15 U.S.C. 79b.
Sec. 16042. The following
terms are defined: affiliates;
associate company;
Commission; company;
electric utility company;
exempt wholesale generator;
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.
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.
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.
Comments
CRS-67
Provision
Current Law
House
Senate
Repeal of the Public
Utility Holding
Company Act of 1935.
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 of
subsidiaries are required to
have SEC approval prior to
issuing securities; all loans
and intercompany financial
transactions are regulated by
the SEC. A holding company
can be exempt from PUHCA
if its business operations and
those of its subsidiaries occur
within one state or within
contiguous states (15 U.S.C.
79 et seq.).
Sec. 16043. The Public Utility
Holding Company Act of
1935 is repealed.
Sec. 223.The Public Utility
Holding Company Act of
1935 is repealed.
Comments
CRS-68
Provision
Current Law
House
Senate
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. 16044. Federal access is
provided to books and records
of holding companies and
their affiliates. Affiliate
companies must make
available to the Commission
the books and records of
affiliate transactions. Federal
officials must maintain the
confidentiality of such books
and records.
Sec. 224. Similar 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. 16045. A jurisdictional
state commission may make a
reasonably detailed written
request to a holding company
or any associate company for
access to specific books and
records, which must be kept
confidential. This section
does not apply to a holding
company that is such solely
by reason of ownership of
one or more qualifying
facilities. Response to such
requests is mandatory.
Compliance with this section
is enforceable in U.S. District
Court.
Sec. 225. Similar provision.
Comments
CRS-69
Provision
Current Law
House
Senate
Exemption authority.
No current law.
Sec. 16046. FERC is directed
to promulgate rules to exempt
qualifying facilities, exempt
wholesale generators, and
foreign utility companies
from the requirements of
Section 16044.
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.
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. 16047. FERC retains the
authority to prevent crosssubsidization and to assure
that jurisdictional rates are
just and reasonable. FERC
and state commissions retain
jurisdiction to determine
whether associate company
activities may be recovered in
rates.
Sec. 227. Similar provision.
Applicability.
No specific provision.
Sec. 16048. Except as
specifically noted, this
subtitle does not apply to the
U.S. Government, a state or
any political subdivision of a
state, or a foreign
governmental authority
operating outside the United
States.
Sec. 228. Similar provision.
Effect on other
regulations.
No specific provision.
Sec. 16049. FERC or a state
commission is not precluded
from exercising its
jurisdiction under otherwise
applicable laws to protect
utility customers.
Sec. 229. Similar provision.
Comments
CRS-70
Provision
Current Law
House
Senate
Enforcement.
15 U.S.C. 79r. The Securities
and Exchange Commission
has authority to investigate
and enforce provisions of the
Public Utility Holding
Company Act of 1935.
Sec. 16050. FERC has
authority to enforce this
provision under sections 306317 of the Federal Power Act.
Sec. 230. Similar provision.
Savings provisions.
Not applicable.
Sec. 16051. 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 Act. The
subtitle does not limit the
authority of the Federal
Energy Regulatory
Commission under the
Federal Power Act or the
Natural Gas Act.
Sec. 231. Similar provision.
Implementation.
Not applicable.
Sec. 16052. Not later than 12
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.
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.
Comments
CRS-71
Provision
Current Law
House
Senate
Comments
Transfer of resources.
The Securities and Exchange
Commission maintains books
and records and regulates
security transactions (15
U.S.C. 79 et seq.).
Sec.16053. The Securities and
Exchange Commission will
transfer all applicable books
and records to FERC.
Sec. 233. Similar provision.
No time frame for transfer
books and records is
provided.
Effective date.
Not applicable.
Sec. 16054. Twelve months
after enactment, this subtitle
will take effect.
Sec. 236. Eighteen months
after enactment, this subtitle
will take effect.
Authorization of
appropriations.
Not applicable.
Sec. 16055. Necessary funds
to carry out this subtitle are
authorized to be appropriated.
Sec. 237. Similar provision.
Conforming
amendments to the
Federal Power Act.
The current jurisdiction of
the Securities and Exchange
Commission under the Public
Utility Holding Company Act
of 1935 is referenced by 16
U.S.C. 825q; 16 U.S.C.
824(g)(5); 16 U.S.C. 824m.
Sec. 16056. The Federal
Power Act is amended to
reflect the changes to the
Public Utility Holding
Company Act of 1935.
Sec. 238. Similar provision.
Interagency review of
competition in the
wholesale and retail
markets for electric
energy.
No current law.
No similar provision.
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.
CRS-72
Provision
Current Law
House
Senate
GAO study on
implementation.
No current law.
No similar provision.
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.
Comments
CRS-73
Public Utility Regulatory Policies Act (PURPA) Amendments
Provision
Current Law
House
Senate
Real-time pricing and
time-of-use metering
standards.
States are required to to
consider whether to
implement standards for the
purchase of long-term
wholesale power supplies (16
U.S.C. 2621(d)).
Sec. 16061. Not later than one
year after enactment, each
state regulatory authority is
required to consider
implementing the following
standards: (1) if requested by
an electric consumer, each
electric utility must provide
customers with a real-time
rate schedule; and (2) if
requested by an electric
consumer, each electric utility
is required to provide time-ofuse metering technology.
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.
Adoption of additional
standards.
No current law.
No similar provision.
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.
Comments
CRS-74
Provision
Current Law
House
Senate
Technical assistance.
No current law.
No similar provision.
Sec. 243. The Secretary of
Energy is authorized to
provide technical assistance
to the states to help develop
the standards under Section
242.
Cogeneration and
small power
production purchase
and sale requirements.
Section 210 of the Public
Utility Regulatory Policies
Act of 1978 (PURPA)
requires utilities to purchase
power from qualifying
facilities and small power
producers at a rate of the
utilities’ avoided cost (16
U.S.C. 824a-3).
Sec. 16062. Mandatory power
purchase requirements under
§210 of PURPA will not
apply to new contracts after
the date of enactment if
FERC finds that a competitive
electric market exists and a
qualifying facility has access
to independently
administered, auction-based
day-ahead and real-time
wholesale markets and longterm wholesale markets.
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.
Sec. 244. Mandatory purchase
requirements under PURPA
§210 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.
Smart metering.
No current law.
Sec. 16063. States must
consider whether to
implement time-based rate
schedules and time-based
metering.
No provision.
Comments
CRS-75
Renewable Energy
Provision
Current Law
House
Senate
Net metering.
No current law.
Sec. 16071. Each state public
utility commission is
authorized to decide if net
metering, will be implemented. All utilities are
required to provide net
metering. Size limits are 500
kilowatts (kw) for
commercial systems and 10
kw for residential systems.
Sec. 245. Similar provision.
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. 16072. Eligibility is
extended through 2023 and
expanded to include electric
cooperatives and tribal
governments. Qualifying
resources are expanded to
include landfill gas.
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 (also
similar to Sec. 13201).
Comments
CRS-76
Provision
Current Law
House
Senate
Renewable energy on
Federal lands.
No existing requirement.
Sec. 16073. The Secretary of
the Interior, assisted by the
Secretary of Agriculture, is
required to study the potential
for solar and wind energy
resources on federal lands.
Also, the National Academy
of Sciences (NAS) is directed
to study the potential for
solar, wind, and ocean energy
on the Outer Continental
Shelf.
Sec. 265. The Secretary of the
Interior is directed to create a
pilot program to develop
wind and solar energy on
federal lands.
Energy infrastructure
protection and
reliability research and
development.
General DOE authority.
No provision.
Sec. 1261. DOE shall
conduct a program for
research, development, and
deployment of technologies
to protect energy
infrastructure.
Assessment of
renewable energy
resources.
No existing requirement.
Sec. 16074. DOE is required
to report annually on resource
potential, including solar,
wind, biomass, ocean,
geothermal, and hydro.
Sec. 262. DOE is required to
report annually on resource
potential, including solar,
wind, biomass, ocean,
geothermal, and hydro.
Comments
The Department of Energy
(DOE) currently has a
Transmission Reliability
Program under the Office of
Power Technologies. The
Transmission Reliability
Program conducts research to
improve the reliability of the
U.S. electric power system.
Security implementation is
the responsibility of the
Department of Homeland
Security.
CRS-77
Provision
Current Law
House
Senate
Comments
Renewable portfolio
standard (RPS).
No existing requirement.
No similar provision
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.
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.)
No similar provision.
Sec. 271. The 3 cent/kwh
price cap for tradable credits
in Sec. 264, which establishes
an RPS, shall be considered
1.5 cents/kwh.
Change RPS price cap
from 3 cents to 1.5
cents.
CRS-78
Market Transparency, Round Trip Trading Prohibition, and Enforcement
Provision
Current Law
House
Senate
Market transparency
rules.
No current law.
Sec. 16081. 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 if
disclosed FERC determines is
detrimental to the operation
of an effective market or
jeopardizes system security is
exempt from disclosure.
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.
Information disclosure
No provision.
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.
Comments
CRS-79
Provision
Current Law
House
Senate
Comments
Prohibition on round
trip trading.
18 U.S.C. 1341 (mail fraud):
This in part applies to use of
the mail for the purpose of
executing, or attempting to
execute, a scheme or artifice
to defraud or for obtaining
money or property by false or
fraudulent pretenses,
representations, or promises.
Sec. 16082. It is unlawful for
any individual, corporation,
or any government entity
(municipality, state, power
marketing administration) to
engage in round-trip
electricity trading. Roundtrip trading is defined to
include contracts where
purchase and sale transactions
have no specific financial
gain or loss and are entered
into with the intent to distort
reported revenues, trading
volumes, or prices.
No provision.
This section explicitly applies
existing fraud statutes to
round-trip electricity trading.
Sec. 16083. Changes reflect
amendments to the Federal
Power Act.
No provision.
18 U.S.C. 1343 (wire fraud):
Covers use of wire, radio, or
television communication in
interstate or foreign
commerce to transmit or to
cause to be transmitted any
writings, signs, signals,
pictures, or sounds, for the
purpose of executing a
scheme or artifice to defraud
or for obtaining money or
property by means of false or
fraudulent pretenses,
representations, or promises.
Conforming changes.
16 U.S.C. 824.
CRS-80
Provision
Current Law
House
Senate
Enforcement.
Criminal penalties may not
exceed $5,000 and/or 2 years
imprisonment. A civil
penalty not exceeding
$10,000 per day of violation
may be assessed for
violations of Sections 211,
212, 213, or 214 of the
Federal Power Act (16 U.S.C.
825e and 16 U.S.C. 825o).
Sec. 16084. The Federal
Power Act is amended to
allow electric utilities to file a
complaint with FERC and to
allow complaints to be filed
against transmitting utilities.
Criminal and civil penalties
under the Federal Power Act
are increased.
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.
Comments
Consumer Protections
Provision
Current Law
House
Senate
Comments
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. 16091. 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. If
FERC does not make its
decision within the timeframe provided, FERC must
state its reasons for not acting
and provide a time-frame for
the decision.
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.
The House bill (Sec.
16091(4)) needs a comma
inserted after “in the fifth
sentence” to keep the
intended meaning.
CRS-81
Provision
Current Law
House
Senate
Comments
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).
No provision.
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.
This provision could limit
FERC’s options to respond to
rates found to be unjust,
unreasonable, unduly
discriminatory or preferential.
Jurisdiction over
interstate sales.
Section 201(f) of the Federal
Power Act exempts
government entities from
FERC rate regulation (16
U.S.C. 824).
Sec. 16092. Any entity that is
not a public utility (including
an entity referred to under
§201(f) of the Federal Power
Act) and that enters into spot
market transactions will be
subject to FERC refund
authority. This section does
not apply to electric
cooperatives or government
entities (power marketing
administrations, state-owned
utilities, municipalities) that
sell no more than 4 million
megawatt-hours of electricity
per year. Upon finding that
action is necessary to protect
the public interest, FERC may
modify or abrogate any
contract entered into after
enactment of this section
unless the contract expressly
provides for a different
standard of review.
No provision.
As engrossed in the House,
this section is intended to
exempt any coop or an entity
described in §201(f) of the
Federal Power Act that does
not sell more that 4 million
megawatt-hours of electricity
in one year. However, as
drafted, this section could be
interpreted as exempting all
§201(f) entities from FERC
refund authority.
CRS-82
Provision
Current Law
House
Senate
Consumer privacy.
No current law.
Sec. 16093. The Federal
Trade Commission is required
to issue rules to protect the
privacy of electric consumers
for the disclosure of
consumer information
obtained in connection with
the sale or delivery of electric
energy to consumers. If the
Federal Trade Commission
finds that a state’s regulations
provide equivalent or greater
protection than the rules
issued under this section, then
state regulations will apply
rather than federal rules.
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.
Unfair trade practices.
No current law.
Sec. 16094. The Federal
Trade Commission is required
to issue rules to prohibit
slamming and cramming. If
the Federal Trade
Commission determines that a
state’s regulations provide
equal or greater protection
than the federal rule, then a
state’s regulations on
slamming and cramming will
apply.
Sec. 254. The Federal Trade
Commission is required to
issue rules prohibiting
slamming and cramming.
Comments
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.
CRS-83
Provision
Current Law
House
Senate
Office of Consumer
Advocacy.
No current law.
No provision.
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.
Applicable procedures.
Administrative Procedure Act
(5 U.S.C. 533).
No provision.
Sec. 255. The Federal Trade
Commission will adhere to
the notice and comment
rulemaking procedures under
the Administrative Procedure
Act (5 U.S.C. 533) for rules
issued under this subtitle.
Federal Trade
Commission
enforcement.
Federal Trade Commission
Act (15 U.S.C. 57a).
No provision.
Sec. 256. Violations of rules
under this subtitle will be
treated as violations of the
Federal Trade Commission
Act (15 U.S.C. 57a).
State authority.
No applicable law.
No provision.
Sec. 257. States are given
authority to prescribe and
enforce laws, rules, or
procedures regarding the
practices of this subtitle.
Comments
This gives states the right to
codify and enforce laws,
rules, and procedures that
may be in direct conflict with
the Consumer Protection
subtitle.
CRS-84
Provision
Current Law
House
Senate
Application of subtitle.
No applicable law.
No provision.
Sec. 258. This subtitle applies
only to electric utilities whose
retail sales exceed 500
million kilowatt-hours per
calendar year.
Definitions.
16 U.S.C. 2602
No provision.
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.
Comments
CRS-85
Merger Review Reform and Accountability
Provision
Current Law
House
Senate
Merger review reform
and accountability.
Under Section 203(a) of the
Federal Power Act, FERC
review of asset transfers
applies to transactions valued
at $50,000 or more (16
U.S.C. 824b).
Sec. 16101. Within 180 days
of enactment, the Secretary of
Energy shall transmit to
Congress a study on whether
FERC’s merger review
authority is duplicative with
other agencies’ authority and
recommendations that would
eliminate any unnecessary
duplication. FERC is
required to issue an annual
report to Congress describing
all conditions placed on
mergers under Section 203(b)
of the Federal Power Act.
FERC is also required to
include in its report whether
such a condition could have
been imposed under any other
provision of the Federal
Power Act.
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.
Comments
CRS-86
Study of Economic Dispatch
Provision
Current Law
House
Senate
Study on the benefits of
economic dispatch.
No current law.
Sec. 16111. The Secretary of
Energy, in consultation with
the states, will issue an annual
report to Congress and the
states on the current status of
economic dispatch. Economic
dispatch is defined as “the
operation of generation
facilities to produce energy at
the lowest cost to reliably
serve consumers, recognizing
any operational limits of
generation transmission
facilities.”
No provision.
Comments
CRS-87
Motor Fuels
General Provisions
Provision
Current Law
House
Senate
Renewable content of
motor vehicle fuel.
No provision.
Sec. 17101. A new §211(o) is
added to the Clean Air Act.
Beginning in 2005, motor
gasoline must contain a
certain amount of renewable
fuel. In 2005, 2.7 billion
gallons of renewable fuel
must be sold annually,
increasing to 5.0 billion
gallons in 2015. After 2015,
the percentage of renewable
fuel required in the motor fuel
pool must be the same as the
percentage required in 2015.
This standard will largely be
met by ethanol, but other
renewable fuels, such as
biodiesel, are eligible.
Ethanol from cellulosic
biomass (including from
wood and agricultural
residue, animal waste, and
municipal solid waste) is
granted extra credits toward
fulfilling the program’s
requirements. Further, the
bill would establish a credit
trading program to provide
flexibility to refiners and
blenders.
Sec. 820 (a). Similar to the
House version except that 2.3
billion gallons of renewable
fuel would be required in
2004, increasing to 5.0 billion
gallons in 2012. The same
percentage standard would
apply after 2012.
Comments
CRS-88
Provision
Current Law
House
Senate
Comments
Fuels safe harbor.
No provision.
Sec. 17102. A “safe harbor”
is provided for renewable
fuels and fuels containing
MTBE (i.e., such fuels cannot
be deemed defective in design
or manufacture by virtue of
the fact that they contain
renewables or MTBE). This
provision applies to claims
filed after the date of
enactment.
Sec. 820 (e). Similar to the
House provision, except that
only renewable fuels would
be protected.
The effect of this provision
would be to protect anyone in
the product chain, from
manufacturers down to
retailers, from liability for
cleanup of MTBE and
renewable fuels or for
personal injury or property
damage based on the nature
of the product (a legal
approach that has been used
in California to require
refiners to shoulder liability
for MTBE cleanup). With
liability for manufacturing
and design defects ruled out,
plaintiffs would be forced to
demonstrate negligence in the
handling of such fuels, a more
difficult legal standard to
meet.
MTBE Ban.
No provision.
No provision.
Sec. 833(c). Not later than
four years after enactment,
the use of MTBE in motor
vehicle fuel is prohibited
except in states that
specifically authorize it. EPA
may allow MTBE in motor
vehicle fuel in quantities up to
0.5% in cases the
Administrator determines to
be appropriate.
CRS-89
Provision
Current Law
House
Senate
Transition from
MTBE.
No provision.
Sec. 17103. Section 211(c) of
the Clean Air Act is amended
to authorize $250 million in
each of FY2004-2006 for
grants to assist U.S. producers
of MTBE in converting to the
production of iso-octane and
alkylates. The Secretary of
Energy may make grants
available for conversion to
other fuel additives, unless
EPA determines that such
additives may reasonably be
anticipated to endanger public
health or the environment.
Sec. 833(c). Provisions for
transition to substitute
additives are similar to the
House version. For FY2003FY2005, $250 million
annually is authorized.
Authority for water
quality protection from
fuels.
Sec. 211(c)(1) of the Clean
Air Act allows the
Administrator of the
Environmental Protection
Agency (EPA) to regulate
fuels and fuel additives to
prevent air pollution.
However, the Act does not
grant EPA the authority to
regulate fuels to prevent
water contamination.
No similar provision.
Sec. 833(c). Sec. 211(c)(1) of
the Clean Air Act is amended
to allow EPA to control or
prohibit the sale of fuel and
fuel additives in order to
protect water quality, in
addition to current authority
based on protection of air
quality.
Comments
CRS-90
Provision
Current Law
House
Senate
Comments
Elimination of oxygen
content requirement
for reformulated
gasoline.
Section 211(k) of the Clean
Air Act requires that
reformulated gasoline (RFG)
contain at least 2% oxygen by
weight. Further, the section
sets limits on reformulated
gasoline volatility, toxic
emissions, and other
properties.
Sec. 17104. Subsection (a)
amends the Clean Air Act to
eliminate the RFG oxygen
requirement.
Sec. 834. Similar to the
House provision.
(a) This provision takes effect
270 days after enactment,
except in California, where it
takes effect immediately upon
enactment.
Subsection (b) amends
§211(k)(1) to require that
each refinery or importer of
gasoline maintain the average
annual reductions in
emissions of toxic air
pollutants achieved by the
reformulated gasoline it
produced or distributed in
1999 and 2000.
Subsection (b) also requires
EPA to promulgate final
regulations to control
hazardous air pollutants from
motor vehicles and their fuels
by July 1, 2004.
Subsection (c) eliminates the
less stringent requirements for
volatility applicable to
reformulated gasoline sold in
VOC Control Region 2
(northern states) by applying
the more stringent standards
of VOC Control Region 1
(southern states).
(b) This provision is intended
to prevent backsliding, since
the reductions actually
achieved in those years
exceeded the regulatory
requirements. It establishes a
credit trading program for
emissions of toxic air
pollutants.
CRS-91
Provision
Current Law
House
Senate
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.
No similar provision.
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.
Analyses of motor
vehicle fuel changes.
No provision.
Sec. 17105. A new §211(p) is
added to the Clean Air Act.
Within four years of
enactment, the Administrator
of the Environmental
Protection Agency (EPA)
must publish a draft analysis
of the effects of the fuels
provisions in the Act on air
pollutant emissions and air
quality. Within five years of
enactment, the Administrator
is required to publish a final
version of the analysis.
Sec. 836. Identical to the
House provision.
Data collection.
No provision.
Sec. 17106. Requires DOE to
collect and publish monthly
survey data on the
production, blending,
importing, demand, and price
of renewable fuels, both on a
national and regional basis.
Sec. 813. Similar to the
House provision.
Comments
CRS-92
Provision
Current Law
House
Senate
Fuel system
requirements
harmonization study.
No provision.
Sec. 17107. The EPA
Administrator and the
Secretary of Energy are
required to conduct a study of
all federal, state, and local
motor fuels requirements.
They are required to analyze
the effects of 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 December 31,
2006.
Sec. 839. Similar to the
House provision, except that
the report must be published
by June 1, 2006.
Reducing the
proliferation boutique
fuels.
Under the Clean Air Act, a
state not required to use
reformulated gasoline (RFG)
may opt-in to the program, or
establish its own gasoline
standards (with certain
restrictions) to meet air
quality goals within its State
Implementation Plan (SIP).
Sec. 17107A. A new
provision is added to
§211(c)(4) of the Clean Air
Act. The EPA Administrator
is directed to give preference
to the approval of air quality
SIPs that require the use of
“Federal Clean Burning
Gasoline” (defined as RFG
with a Reid Vapor Pressure of
6.8 psi) or “Low RVP”
gasoline (with a Reid Vapor
Pressure of 7.8 psi).
No similar provision.
Comments
CRS-93
Provision
Current Law
House
Senate
Comments
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
reformulated gasoline (RFG).
Other nonattainment areas
with less severe problems
may opt-in to the RFG
program.
No similar provision.
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.
The ozone transport region
covers areas from the
Washington, D.C.
Metropolitan Statistical Area
to the state of Maine.
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
choose not to opt-in to the
RFG program) may set their
own fuel standards as part of
a State Implementation Plan
(SIP) for ozone.
No similar provision.
Sec. 838. If a state requests,
EPA may enforce fuel
requirements set in a state’s
SIP.
Currently, states are
responsible for enforcing their
own state-initiated fuel
standards, while EPA
enforces federal fuel
standards.
Commercial
byproducts from
municipal solid waste
loan guarantee
program.
No provision.
Sec. 17108. The Secretary of
Energy is required to
establish a loan guarantee
program for the construction
of facilities to produce fuel
ethanol and other commercial
byproducts from municipal
solid waste. The section
authorizes such sums as may
be necessary for the program.
Sec. 820B. Identical
provision.
CRS-94
Provision
Current Law
House
Senate
Comments
Review of federal
procurement initiatives
relating to use of
recycled products and
fleet and
transportation
efficiency.
Executive Order 13149
directed federal agencies to
increase the EPA-rated fuel
economy of their passenger
cars and to fuel alternative
fuel vehicles (AFVs) with
alternative fuels a majority of
the time.
No similar provision.
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
alternative fuels, and improve
federal vehicle fleet
efficiency.
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.
Executive Order 13101
directed federal agencies to
increase their use of recycled
products.
MTBE Cleanup
Provision
Current Law
House
Senate
Comments
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. 17201. Appropriations
are authorized to EPA from
the Leaking Underground
Storage Tank (LUST) Trust
Fund for actions deemed
necessary to protect human
health, welfare, and the
environment from
underground storage tank
releases of fuel containing
fuel oxygenates (including
MTBE). A total of $850
million is authorized.
Sec. 832. Funds are
authorized from the LUST
Trust Fund for the prevention
and mitigation of
contamination by ether fuel
additives, including MTBE.
The following funds are
authorized for FY2003FY2008: $200 million total
for for general MTBE
remediation; $200 million
total for release prevention;
$2 million total for research
on bedrock remediation; and
$350,000 total for research on
soil remediation.
MTBE, a common additive in
gasoline, has been found to
contaminate underground
drinking water sources in
several states.
CRS-95
Automobile Efficiency
Provision
Current Law
House
Senate
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
Corporate Average Fuel
Economy (CAFE) standards
for passenger automobiles
and light-duty trucks. Fuel
economy of passenger
automobiles is currently 27.5
mpg; light-duty truck CAFE
is 20.7 mpg.
No comparable provision.
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.
Though the House language
does not specifically call for
an increase in CAFE
standards or for NHTSA to
initiate a rulemaking, there is
an implied assumption that
NHTSA will undertake a
rulemaking as provided in
current law. By contrast, the
Senate bill requires that the
agency do so under a
schedule specified in the
legislation.
Authorization of
appropriations for
implementation and
enforcement of fuel
economy standards.
No provision.
Sec. 18001. An authorization
of $5 million is provided for
the implementation and
enforcement of CAFE
standards for FY2004FY2006.
Sec. 801. $2 million is
authorized to carry out this
section.
CRS-96
Provision
Current Law
House
Senate
Study of feasibility and
effects of reducing use
of fuel for automobiles.
No provision.
Sec. 18002. The National
Highway Traffic Safety
Administration (NHTSA)
must initiate a study of the
feasibility and effects of
reducing automobile fuel use
“by a significant percentage”
by model year 2012. The
study is to examine
alternatives to the present
system of CAFE standards,
and examine the potential of
fuel cell technology in
achieving that reduction.
No comparable provision.
Expedited procedures
for congressional
increase in fuel
economy standards.
No current law.
No comparable provision.
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.
Comments
Sec. 802 does not specify
what CAFE standard
Congress may enact under
expedited procedures.
CRS-97
Provision
Current Law
House
Senate
Comments
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)]
No comparable provision.
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.
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.
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.
No comparable provision.
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.
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-98
Provision
Current Law
House
Senate
Comments
Average fuel economy
standard for pickup
trucks.
No specific provision.
No comparable provision.
Sec. 811. The CAFE standard
for “pickup trucks” is frozen
at 20.7 mpg, the current
standard for light-duty trucks.
The Senate bill would appear
to require some definition of a
third category of vehicle —
“pickup trucks” — in addition
to passenger cars and lightduty 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.
CRS-99
Science
Provision
Current Law
House
Senate
Purposes, Goals &
Definitions.
R&D programs are currently
funded, but there are no
existing goals for reducing
energy intensity, curbing
energy use, and cutting
carbon dioxide emissions.
Secs. 20001- 20003. The
programs authorized in this
division of the bill are
intended to support basic
energy research and provide
mechanisms to develop,
demonstrate, and promote the
commercial application of
new energy technologies.
Specific goals are provided
for each research area, such
as the development by 2010
of mid-sized passenger
automobiles with a fuel
economy of 80 miles per
gallon.
Sec. 1201-1204. A DOE
energy R&D and deployment
program is charged with the
goals of reducing energy
intensity by 1.9% annually
through 2020, reducing total
energy use by 8 quadrillion
Btu by 2020, and reducing
carbon dioxide by 166 million
metric tons by 2020.
Energy research and
development
programs.
Comments
Research and Development
Energy Efficiency
Provision
Current Law
House
Senate
Energy efficiency.
Funding authorizations have
expired.
Sec. 21101. Funding for the
DOE energy efficiency
programs is authorized for
FY2004 through FY2007.
Sec. 1211. Numerous goals
are set for the DOE energy
efficiency programs. Also,
funding for the programs is
authorized for FY2003
through FY2006.
Comments
CRS-100
Provision
Current Law
House
Senate
Next Generation
Lighting Initiative.
No existing requirement.
Sec. 21111. A DOE program
is created that aims to
develop, by 2012, advanced
white light-emitting diodes
for high efficiency lighting.
Sec. 1213. A DOE program is
created that aims to develop,
by 2011, advanced white
light-emitting diodes for high
energy efficiency in lighting.
Energy Efficiency of
Electronic Data
Centers.
No specific provision.
No provision.
Sec. 1215. DOE must create
an RD&D program to
improve energy efficiency
and load management of data
centers, server farms, and
other high power density
facilities.
National Building
Performance Initiative.
No existing provision.
Sec. 21121. An interagency
group is established to
address energy efficiency
R&D for buildings. The
National Institute of
Standards and Technology is
directed to provide
administrative support.
No provision.
Electric motor control
technology.
No existing requirement.
Sec. 21122. DOE is directed
to develop advanced control
devices to improve the
efficiency of motors used in
heating, ventilation, air
conditioning, and related
equipment.
No provision.
Comments
CRS-101
Provision
Current Law
House
Senate
Establishment of
secondary electric
vehicle battery use
program.
No provision.
Sec. 21131 and Sec. 21132. A
program is established for
research and development on
applications for used electric
vehicle batteries in utility and
commercial power storage
and power quality.
No similar provision.
Energy Efficiency
Science Initiative.
Though there is no statutory
authority, congressional
initiatives have repeatedly
funde
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