# Omnibus Energy Legislation (H.R. 6): Side-by-Side Comparison of Non-Tax Provisions > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3ARL32033 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** September 9, 2003 - **Citation:** RL32033 ## Text Order Code RL32033 CRS Report for Congress Received through the CRS Web 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: ! ! ! ! ! ! ! ! ! ! ! ! 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 t [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3ARL32033. Public record. Not legal advice.