# Omnibus Energy Legislation, 109th Congress: Assessment of H.R. 6 as passed by the House > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3ARL32936 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** June 3, 2005 - **Citation:** RL32936 ## Text Order Code RL32936 CRS Report for Congress Received through the CRS Web Omnibus Energy Legislation, 109th Congress: Assessment of H.R. 6 as passed by the House June 3, 2005 Mark Holt and Carol Glover, Coordinators Resources, Science, and Industry Division Congressional Research Service ˜ The Library of Congress Omnibus Energy Legislation, 109th Congress: Assessment of H.R. 6 as passed by the House Summary The House approved an omnibus energy bill (H.R. 6) on April 21, 2005, that would open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing, substantially change oversight of electric utilities, increase the use of alternative motor fuels, provide $8.1 billion in energy tax incentives, extend the nuclear accident liability system, and authorize numerous energy R&D programs. The House-passed bill contains many provisions from the conference version of an omnibus energy bill (also H.R. 6) in the 108th Congress that was blocked by a Senate filibuster. Electricity. In part, the electricity section would repeal the Public Utility Holding Company Act (PUHCA) and establish mandatory standards for interstate transmission. Standard market design (SMD) would be remanded to the Federal Energy Regulatory Commission (FERC). Renewable Fuels and Ethanol. An increase in renewable fuel and ethanol consumption to 5 billion gallons annually by 2012 would be mandated. However, states could petition for a waiver if the mandate would have severe economic or environmental repercussions, other than loss of revenue to the highway trust fund. MTBE. Methyl tertiary butyl ether (MTBE), a gasoline additive widely used to meet Clean Air Act requirements, has caused water contamination. The bill would ban the use of MTBE by 2015 with some possible exceptions, provide funds for MTBE cleanup, and provide protection for fuel producers and blenders of renewable fuels and MTBE from defective product lawsuits. Energy Taxes. The bill would reduce energy taxes about $8.1 billion over 10 years, as compared with $23.5 billion in the H.R. 6 conference report in the 108th Congress and $6.7 billion in President Bush’s FY2006 budget request. Nuclear Energy. H.R. 6 would provide a 20-year extension of the PriceAnderson nuclear liability system to the end of 2025 and authorize new reactors. Energy Efficiency Standards. New statutory efficiency standards would be established for several consumer and commercial products and appliances. For certain other appliances, the Department of Energy could set new standards. ANWR. The House-passed bill would authorize oil and gas exploration, development, and production in ANWR, with a 2,000-acre limit on production and support facilities. Supporters of the provision maintain that ANWR oil could be developed with minimal environmental harm, but opponents contend that intrusion on this ecosystem cannot be justified. Energy Production on Federal Lands. Royalty reductions would be provided for marginal oil and gas wells on federal lands and the outer continental shelf. This report will not be updated. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Electricity Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Renewable Fuel Standard and MTBE . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Energy Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Renewable Energy and Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Arctic National Wildlife Refuge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Domestic Energy Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Hydrogen and Fuel Cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Title I — Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Subtitle A — Federal Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 101: Energy and Water Saving Measures in Congressional Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 102: Energy Management Requirements . . . . . . . . . . . . . . . . . 8 Section 103: Energy Use Measurement and Accountability . . . . . . . . . 8 Section 104: Procurement of Energy-Efficient Products . . . . . . . . . . . . 8 Section 105: Energy Savings Performance Contracts . . . . . . . . . . . . . . 8 Section 107: Voluntary Commitments to Reduce Industrial Energy Intensity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section 108: Advanced Building Efficiency Testbed . . . . . . . . . . . . . . 9 Section 109: Federal Building Performance Standards . . . . . . . . . . . . . 9 Section 111: Daylight Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 112: Enhancing Energy Efficiency in Management of Federal Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Subtitle B — Energy Assistance and State Programs . . . . . . . . . . . . . . . . . . 9 Section 121: Low Income Home Energy Assistance Program (LIHEAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 122: Weatherization Assistance . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 123: State Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Section 124: Energy-Efficient Appliance Rebate Programs . . . . . . . . . 9 Section 125: Energy-Efficient Public Buildings . . . . . . . . . . . . . . . . . . 9 Section 126: Low Income Community Energy Efficiency Pilot Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Subtitle C — Energy-Efficient Products . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 131: Energy Star Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 132: HVAC Maintenance Consumer Education Program . . . 10 Section 133: Energy Conservation Standards for Additional Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 134: Energy Labeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 135: Preemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Section 136: State Consumer Product Energy Efficiency Standards . . 10 Section 137: Intermittent Escalators . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Subtitle D — Public Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 141: Capacity Building for Energy-Efficient, Affordable Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 142: Increase of CDBG Public Services Cap for Energy Conservation and Efficiency Activities . . . . . . . . . . . . . . 11 Section 143: FHA Mortgage Insurance Incentives for Energy-Efficient Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 144: Public Housing Capital Fund . . . . . . . . . . . . . . . . . . . . . 11 Section 145: Grants for Energy-Conserving Improvements for Assisted Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 147: Energy-Efficient Appliances . . . . . . . . . . . . . . . . . . . . . . 11 Section 148: Energy-Efficient Standards . . . . . . . . . . . . . . . . . . . . . . . 11 Section 149: Energy Strategy for HUD . . . . . . . . . . . . . . . . . . . . . . . . 11 Title II — Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Subtitle A — General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 201: Assessment of Renewable Energy Resources . . . . . . . . . 12 Section 202: Renewable Energy Production Incentive . . . . . . . . . . . . 12 Section 203: Federal Purchase Requirement . . . . . . . . . . . . . . . . . . . . 12 Section 204: Insular Areas Energy Security . . . . . . . . . . . . . . . . . . . . . 12 Section 205: Use of Photovoltaic Energy in Public Buildings . . . . . . 13 Section 206: Federal Procurement of Biobased Products . . . . . . . . . . 13 Section 207: Renewable Energy Security . . . . . . . . . . . . . . . . . . . . . . 13 Section 208: Installation of Photovoltaic System . . . . . . . . . . . . . . . . 13 Section 209: Sugar Cane Ethanol Pilot Program . . . . . . . . . . . . . . . . . 13 Subtitle C — Hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Section 231: Alternative Conditions and Fishways . . . . . . . . . . . . . . . 13 Section 241: Hydroelectric Production Incentives . . . . . . . . . . . . . . . . 14 Section 242: Hydroelectric Efficiency Improvement . . . . . . . . . . . . . . 14 Section 243: Small Hydroelectric Power Projects . . . . . . . . . . . . . . . . 14 Title III — Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Subtitle A — Petroleum Reserve and Home Heating Oil . . . . . . . . . . . . . . 15 Section 301: Permanent Authority to Operate the Strategic Petroleum Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 302: National Oilheat Research Alliance . . . . . . . . . . . . . . . . 15 Section 303: Site Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Section 304: Suspension of Strategic Petroleum Reserve Deliveries . 15 Subtitle B — Production Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 320: Liquefied Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 327: Hydraulic Fracturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Section 328: Oil and Gas Exploration and Production Defined . . . . . 18 Section 329: Outer Continental Shelf Provisions . . . . . . . . . . . . . . . . 19 Section 330: Appeals Relating to Pipeline Construction or Offshore Mineral Development Projects . . . . . . . . . . . . . . . . . . . 19 Sections 332 — 333: Natural Gas Market Reform . . . . . . . . . . . . . . . 19 Section 334: Oil, Gas, and Mineral Industry Workers . . . . . . . . . . . . . 20 Subtitle C — Access to Federal Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Sections 344 and 346: Leasing and Permitting Processes . . . . . . . . . . 20 Section 355: Encouraging Prohibition of Drilling in the Great Lakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Section 358: Federal Coalbed Methane Regulation . . . . . . . . . . . . . . . 21 Subtitle D — Refining Revitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Sections 371- 379: Refining Revitalization . . . . . . . . . . . . . . . . . . . . . 21 Title IV — Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Subtitle A — Clean Coal Power Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Sections 401- 404: Clean Coal Power Initiative . . . . . . . . . . . . . . . . . 22 Subtitle B — Clean Power Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Sections 411- 416: Clean Power Projects . . . . . . . . . . . . . . . . . . . . . . 23 Subtitle D — Coal and Related Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Section 441: Clean Air Coal Program . . . . . . . . . . . . . . . . . . . . . . . . . 23 Title V — Indian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 501: Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 502: Office of Indian Energy Policy and Programs . . . . . . . . 24 Section 503: Indian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Section 504: Consultation with Indian Tribes . . . . . . . . . . . . . . . . . . . 24 Section 505. Four Corners Transmission Line Project . . . . . . . . . . . . 25 Title VI — Nuclear Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Subtitle A — Price-Anderson Act Amendments . . . . . . . . . . . . . . . . . . . . . 25 Sections 601- 612: Price-Anderson Nuclear Liability Coverage . . . . . 25 Subtitle B — General Nuclear Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Section 621: Commercial Reactor License Period . . . . . . . . . . . . . . . 27 Section 622: NRC Training and Fellowship Program . . . . . . . . . . . . . 27 Section 623: Cost Recovery From Government Agencies . . . . . . . . . 27 Section 624: Elimination of Pension Offset for Key NRC Personnel . 27 Section 625: Antitrust Review Suspension . . . . . . . . . . . . . . . . . . . . . 28 Section 626: Decommissioning Fund Protection . . . . . . . . . . . . . . . . . 28 Section 627: Limitation on DOE Legal Fee Reimbursement . . . . . . . 28 Section 629: Feasibility Study for Commercial Reactors at DOE Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Section 630: Government Uranium Sales . . . . . . . . . . . . . . . . . . . . . . 28 Section 631: Uranium Mining Research and Development . . . . . . . . . 28 Section 632: Whistleblower Protection . . . . . . . . . . . . . . . . . . . . . . . . 28 Section 633: Uranium Exports for Medical Isotope Production . . . . . 28 Section 634: Fernald Byproduct Material . . . . . . . . . . . . . . . . . . . . . . 29 Section 635: Safe Disposal of Greater-than-Class-C Radioactive Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Section 636: Prohibition on Nuclear Exports to Terrorism Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Section 638: National Uranium Stockpile . . . . . . . . . . . . . . . . . . . . . . 29 Section 639: Nuclear Regulatory Commission Meetings . . . . . . . . . . 29 Section 640: Employee Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Subtitle C — Advanced Reactor Hydrogen Production . . . . . . . . . . . . . . . 30 Sections 651-652: Hydrogen Cogeneration Production Programs . . . 30 Subtitle D — Nuclear Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Section 661: Nuclear Facility Threats . . . . . . . . . . . . . . . . . . . . . . . . . 30 Section 662: Fingerprinting for Criminal Background Checks . . . . . . 30 Section 663: Use of Firearms by Nuclear Licensees . . . . . . . . . . . . . . 30 Section 664: Unauthorized Introduction of Dangerous Weapons . . . . 30 Section 665: Sabotage of Nuclear Facilities or Fuel . . . . . . . . . . . . . . 30 Section 666: Secure Transfer of Nuclear Materials . . . . . . . . . . . . . . . 31 Section 667: Department of Homeland Security Consultation . . . . . . 31 Section 668: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 31 Title VII — Vehicles and Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Subtitle A — Existing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Section 701: Use of Alternative Fuels by Dual-Fueled Vehicles . . . . 31 Section 704: Incremental Cost Allocation . . . . . . . . . . . . . . . . . . . . . . 31 Section 705: Lease Condensates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Section 706: Review of Energy Policy Act of 1992 Programs . . . . . . 32 Section 707: Report Concerning Compliance with Alternative Fuel Vehicle Purchasing Requirements . . . . . . . . . . 32 Subtitle B — Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses . 32 Section 711: Hybrid Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Section 712: Hybrid Retrofit and Electric Conversion Program . . . . . 32 Section 713: Efficient Hybrid and Advanced Diesel Vehicles . . . . . . 32 Sections 721-724: Advanced Vehicles . . . . . . . . . . . . . . . . . . . . . . . . 32 Section 731: Fuel Cell Transit Bus Demonstration . . . . . . . . . . . . . . . 32 Subtitle C — Clean School Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Sections 741-744: Clean School Buses . . . . . . . . . . . . . . . . . . . . . . . . 33 Section 743A: Diesel Truck Retrofit and Fleet Modernization Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Subtitle D — Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Section 751: Railroad Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Section 752: Mobile Emission Reductions Trading . . . . . . . . . . . . . . 33 Section 753: Aviation Fuel Conservation and Emissions . . . . . . . . . . 33 Section 754: Diesel Fueled Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Section 755: Conserve by Bicycling Program . . . . . . . . . . . . . . . . . . . 34 Section 756: Reduction of Engine Idling of Heavy-Duty Vehicles . . . 34 Section 757: Biodiesel Engine Testing Program . . . . . . . . . . . . . . . . . 34 Section 758: High Occupancy Vehicle Exception . . . . . . . . . . . . . . . . 34 Section 759: Ultra-Efficient Engine Technology for Aircraft . . . . . . . 34 Subtitle E — Automobile Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Sections 771-775: Fuel Economy Standards . . . . . . . . . . . . . . . . . . . . 34 Title VIII — Hydrogen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Sections 801-809: Hydrogen Research and Development . . . . . . . . . . 35 Section 810: Solar and Wind Technologies . . . . . . . . . . . . . . . . . . . . . 35 Section 811: Hydrogen Fuel Cell Buses . . . . . . . . . . . . . . . . . . . . . . . 35 Title IX — Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Section 900: Short Title; Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Subtitle A — Science Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Section 901: Office of Science Programs . . . . . . . . . . . . . . . . . . . . . . 36 Section 902: Systems Biology Program . . . . . . . . . . . . . . . . . . . . . . . . 36 Section 903: Catalysis Research and Development Program . . . . . . . 36 Section 904: Hydrogen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Section 905: Advanced Scientific Computing Research . . . . . . . . . . . 36 Section 906: Fusion Energy Sciences Program . . . . . . . . . . . . . . . . . . 36 Section 907: Science and Technology Scholarship Program . . . . . . . . 37 Section 908: Office of Scientific and Technical Information . . . . . . . 37 Section 909: Science and Engineering Pilot Program . . . . . . . . . . . . . 37 Section 910: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 37 Subtitle B — Research Administration and Operations . . . . . . . . . . . . . . . 37 Section 911: Cost Sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Section 912: Reprogramming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Section 913: Merit-Based Competition . . . . . . . . . . . . . . . . . . . . . . . . 37 Section 914: External Technical Review of Departmental Programs . 38 Section 915: Competitive Award of Management Contracts . . . . . . . 38 Section 916: National Laboratory Designation . . . . . . . . . . . . . . . . . . 38 Section 917: Report on Equal Employment Opportunity Practices . . 38 Section 918: User Facility Best Practices Plan . . . . . . . . . . . . . . . . . . 38 Section 919: Support for Science and Energy Infrastructure and Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Section 920: Coordination Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Section 921: Availability of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Subtitle C — Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Chapter 1 — Vehicles, Buildings, and Industries . . . . . . . . . . . . . . . . . . . . 39 Section 922: Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 923: Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 924: Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 925: Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 926: Demonstration and Commercial Application . . . . . . . . . 39 Section 927: Secondary Electric Vehicle Battery Use Program . . . . . 40 Section 928: Next Generation Lighting Initiative . . . . . . . . . . . . . . . . 40 Section 929: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 930: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 40 Section 931: Limitation on Use of Funds . . . . . . . . . . . . . . . . . . . . . . 40 Chapter 2 — Distributed Energy and Electric Energy Systems . . . . . . . . . . 40 Section 932: Distributed Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 933: Electricity Transmission and Distribution and Energy Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Section 933A: Advanced Portable Power Devices . . . . . . . . . . . . . . . 40 Section 934: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 41 Subtitle D — Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 935: Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 936: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 937: Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 938: Solar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 939: Bioenergy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 940: Wind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 939: Geothermal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 942: Photovoltaic Demonstration Program . . . . . . . . . . . . . . . 42 Section 943: Additional Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 944: Analysis and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 945: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 42 Subtitle E — Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 946: Definition of Junior Faculty . . . . . . . . . . . . . . . . . . . . . . 42 Section 947: Nuclear Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 948: Advanced Fuel Recycling Program . . . . . . . . . . . . . . . . 42 Section 949: University Nuclear Science and Engineering Support . . 43 Section 950: University-National Laboratory Interactions . . . . . . . . . 43 Section 951: Nuclear Power 2010 Program . . . . . . . . . . . . . . . . . . . . . 43 Section 952: Generation IV Nuclear Energy Systems Initiative . . . . . 43 Section 953-955: Infrastructure and Facilities . . . . . . . . . . . . . . . . . . . 43 Section 956: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 43 Sections 957-961: Next Generation Nuclear Plant . . . . . . . . . . . . . . . 43 Subtitle F — Fossil Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Chapter 1 — Research Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 962: Enhanced Fossil Energy Research and Development Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 963: Fossil Research and Development . . . . . . . . . . . . . . . . . 44 Section 964: Oil and Gas Research and Development . . . . . . . . . . . . 44 Section 965: Transportation Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 966: Fuel Cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 967: Carbon Dioxide Capture Research and Development . . 44 Section 968: Authorization of Appropriations . . . . . . . . . . . . . . . . . . . 44 Section 968A: Western Michigan Demonstration Project . . . . . . . . . . 44 Section 968B: Western Hemisphere Energy Cooperation . . . . . . . . . . 44 Section 968C: Arctic Engineering Research Center . . . . . . . . . . . . . . 44 Section 968D: Barrow Geophysical Research Facility . . . . . . . . . . . . 45 Chapter 2 — Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Sections 969 - 976: Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources . . . . . . . . . . . . . . . . . . . . . . 45 Title X — Department of Energy Management . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 1002: Other Transactions Authority . . . . . . . . . . . . . . . . . . . . 46 Section 1003: University Collaboration . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 1004: Sense of Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Title XII — Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 1201: Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Subtitle A — Reliability Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 1211: Electric Reliability Standards . . . . . . . . . . . . . . . . . . . 46 Section 1221: Siting of Interstate Electric Transmission Facilities . . 48 Section 1222: Third-Party Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Section 1223: Transmission System Monitoring . . . . . . . . . . . . . . . . 49 Section 1224: Advanced Transmission Technologies . . . . . . . . . . . . 50 Section 1225: Electric Transmission and Distribution Programs . . . . 50 Section 1226: Advanced Power System Technology Incentive Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Section 1227: Office of Electric Transmission and Distribution . . . . 50 Subtitle C — Transmission Operation Improvements . . . . . . . . . . . . . . . . . 50 Section 1231: Open Nondiscriminatory Access . . . . . . . . . . . . . . . . . 50 Section 1232: Sense of Congress on Regional Transmission Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Section 1233: Regional Transmission Organization Applications Progress Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Section 1234: Federal Utility Participation in Regional Transmission Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Section 1235: Standard Market Design . . . . . . . . . . . . . . . . . . . . . . . 51 Section 1236: Native Load Service Obligation . . . . . . . . . . . . . . . . . . 54 Section 1237: Study on the Benefits of Economic Dispatch . . . . . . . 54 Subtitle D — Transmission Rate Reform . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Section 1241: Transmission Infrastructure Investment . . . . . . . . . . . . 54 Subtitle E — Amendments to PURPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Section 1251: Net Metering and Additional Standards . . . . . . . . . . . 55 Section 1252: Smart Metering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Section 1253: Cogeneration and Small Power Production Purchase and Sale Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Section 1253: Interconnection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Subtitle F — Repeal of PUHCA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 1261: Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 1262: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 1263: Repeal of the Public Utility Holding Company Act of 1935 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Section 1264: Federal Access to Books and Records . . . . . . . . . . . . 60 Section 1265: State Access to Books and Records . . . . . . . . . . . . . . . 60 Section 1266: Exemption Authority . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1267: Affiliate Transactions . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1268: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1269: Effect on Other Regulations . . . . . . . . . . . . . . . . . . . . . 61 Section 1270: Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1271: Savings Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1272: Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1273: Transfer of Resources . . . . . . . . . . . . . . . . . . . . . . . . . 61 Section 1274: Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Section 1275: Service Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Section 1276: Authorization of Appropriations . . . . . . . . . . . . . . . . . . 62 Section 1277: Conforming Amendments to the Federal Power Act . . 62 Subtitle G — Market Transparency, Enforcement, and Consumer Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Section 1281: Market Transparency Rules . . . . . . . . . . . . . . . . . . . . . 62 Section 1282: Market Manipulation . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Section 1283: Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Section 1284: Refund Effective Date . . . . . . . . . . . . . . . . . . . . . . . . . 63 Section 1285: Refund Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Section 1286: Sanctity of Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Section 1287: Consumer Privacy and Unfair Trade Practices . . . . . . . 64 Subtitle H — Merger Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Section 1291: Merger Review Reform and Accountability . . . . . . . . . 64 Section 1292: Electric Utility Mergers . . . . . . . . . . . . . . . . . . . . . . . . 65 Subtitle I — Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Section 1295: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Section 1297: Conforming Amendments . . . . . . . . . . . . . . . . . . . . . . 65 Subtitle K — Economic Dispatch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Section 1298. Economic Dispatch . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Title XIII — Energy Tax Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Section 1300: Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Subtitle A — Energy Infrastructure Tax Incentives . . . . . . . . . . . . . . . . . . . 65 Section 1301: Natural Gas Gathering Lines Treated As 7-Year Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Section 1302: Natural Gas Distribution Lines Treated As 15-Year Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Section 1303: Electric Transmission Property Treated As 15-Year Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Section 1304: Expansion of Amortization of Certain Atmospheric Pollution Control Facilities in Connection With Plants First Placed-in-Service After 1975 . . . . . . . . . . . . . . 66 Section 1305: Modification of Credit for Producing Fuel From a Nonconventional Source . . . . . . . . . . . . . . . . . . . . . . . . . 67 Section 1306: Modifications to Special Rules for Nuclear Decommissioning Costs . . . . . . . . . . . . . . . . . . . . . . . . . 68 Section 1307: Arbitrage Rules Not to Apply to Prepayment of Natural Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Section 1308: Determination of Small Refiner Exception to Oil Depletion Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Subtitle B — Miscellaneous Energy Tax Provisions . . . . . . . . . . . . . . . . . . 69 Section 1311: Credit for Residential Energy Efficiency Property . . . . 69 Section 1312: Credit for Business Installation of Qualified Fuel Cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Section 1313: Reduced Motor Fuels Excise Tax on Certain Mixtures of Diesel Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Section 1314: Amortization of Delay Rentals . . . . . . . . . . . . . . . . . . . 69 Section 1315: Amortization of Geological and Geophysical Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Section 1316: Advanced Lean-Burn Technology Motor Credit . . . . . 70 Section 1317: Credit for Energy Efficiency Improvements to Existing Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Subtitle C — Alternative Minimum Tax Relief . . . . . . . . . . . . . . . . . . . . . 70 Section 1321: New Non-refundable Personal Credit Allowed Against Regular and Alternative Minimum Tax . . . . . . . . . . . . . 70 Section 1322: Certain Business Energy Credits Allowed Against Regular and Minimum Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Title XIV — Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Subtitle C — Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Section 1441. Continuation of Transmission Security Order . . . . . . . 71 Section 1442: Review of Agency Determinations on Gas Projects . . . 72 Section 1443: Attainment Dates for Downwind Ozone Nonattainment Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Section 1444: Energy Production Incentives . . . . . . . . . . . . . . . . . . . . 73 Section 1446: Regulation of Certain Oil Used in Transformers . . . . . 73 Section 1447: Risk Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Section 1448: Oxygen-fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Section 1449: Petrochemical and Oil Refinery Facility Health Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Sec. 1450: United States — Israel Cooperation . . . . . . . . . . . . . . . . . . 73 Section 1451: Carbon-Based Fuel Cell Development . . . . . . . . . . . . . 74 Section 1452: National Priority Project Designation . . . . . . . . . . . . . . 74 Title XV — Ethanol and Motor Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Subtitle A — General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Section 1501: Renewable Content of Motor Vehicle Fuel . . . . . . . . . 74 Section 1502: Fuels Safe Harbor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Section 1503: MTBE Transition Assistance . . . . . . . . . . . . . . . . . . . . 75 Sections 1504-1505: Ban on the Use of MTBE . . . . . . . . . . . . . . . . . . 75 Section 1506: Elimination of Oxygen Requirement and Maintenance of Toxic Emission Reductions . . . . . . . . . . . . . . . . 75 Sections 1507-1508: Analyses and Data Collection . . . . . . . . . . . . . . 76 Section 1509: Reducing the Proliferation of State Fuel Controls . . . . 76 Section 1510: Fuel System Requirements Harmonization Study . . . . 76 Section 1511: Commercial Byproducts From Municipal Solid Waste and Cellulosic Biomass Loan Guarantee Program . . . . . . 76 Section 1512: Conversion Assistance for Cellulosic Biomass, Waste-Derived Ethanol, Approved Renewable Fuels . . . . . . . . . 76 Section 1513: Blending of Compliant Reformulated Gasolines . . . . . 76 Subtitle B — Underground Storage Tank Compliance . . . . . . . . . . . . . . . . 76 Sections 1521- 1533: Underground Storage Tank Provisions . . . . . . . 76 Subtitle C — Boutique Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Section 1541: Reducing the Proliferation of Boutique Fuels . . . . . . . 78 Title XVI — Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Section 1601: Study on Inventory of Petroleum and Natural Gas Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Section 1605: Study of Energy Efficiency Standards . . . . . . . . . . . . . 79 Section 1606: Telecommuting Study . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Section 1607: LIHEAP Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Section 1608: Oil Bypass Filtration Technology . . . . . . . . . . . . . . . . . 79 Section 1609: Total Integrated Thermal Systems . . . . . . . . . . . . . . . . 79 Section 1610: University Collaboration . . . . . . . . . . . . . . . . . . . . . . . . 79 Section 1611: Reliability and Consumer Protection Assessment . . . . 79 Section 1612: Report on Energy Integration with Latin America . . . . 80 Section 1613: Low-Volume Gas Reservoir Study . . . . . . . . . . . . . . . . 80 Section 1614: Consolidation of Gasoline Industry . . . . . . . . . . . . . . . 80 Section 1615: Study of Fuel Savings From Information Technology for Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Section 1616: Feasibility Study for Mustard Seed Biodiesel . . . . . . . . 80 Title XVII — Renewable Energy — Resources . . . . . . . . . . . . . . . . . . . . . . . . . 80 Section 1701: Grants to Improve the Commercial Value of Forest Biomass for Electric Energy, Useful Heat, Transportation Fuels, Petroleum-Based Product Substitutes, and Other Commercial Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Section 1702: Environmental Review for Renewable Energy Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Section 1703: Sense of Congress Regarding Generation Capacity of Electricity From Renewable Energy Resources on Public Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Title XVIII — Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Sections 1801-1820: Geothermal Energy Leasing Amendments . . . . 81 Title XIX — Hydropower — Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Section 1901: Increased Hydroelectric Generation at Existing Federal Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Section 1902: Shift of Project Loads to Off-Peak Periods . . . . . . . . . . 83 Section 1903: Report Identifying and Describing the Status of Potential Hydropower Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Title XX — Oil and Gas — Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Subtitle A — Production Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Section 2001: Definition of Secretary . . . . . . . . . . . . . . . . . . . . . . . . . 83 Section 2002: Program on Oil and Gas Royalties-In-Kind . . . . . . . . . 83 Section 2003: Marginal Property Production Incentives . . . . . . . . . . . 83 Section 2004: Incentives for Natural Gas Production From Deep Wells in the Shallow Waters of the Gulf of Mexico . . . . . . . . . . 83 Section 2005: Royalty Reductions for Deep Water Production . . . . . . 84 Section 2006: Alaska Offshore Royalty Suspension . . . . . . . . . . . . . . 84 Section 2007: Oil and Gas Leasing in the National Petroleum Reserve in Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Section 2008: Orphaned, Abandoned, or Idled Wells on Federal Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Section 2009: Combined Hydrocarbon Leasing . . . . . . . . . . . . . . . . . 84 Section 2010: Alternate Related Uses on the Outer Continental Shelf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Section 2011: Preservation of Geological and Geophysical Data . . . . 84 Section 2012: Oil and Gas Lease Acreage Limitations . . . . . . . . . . . . 85 Section 2013: Deadline for Decision on Appeals under the Coastal Zone Management Act . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Section 2014: Reimbursement for Costs of NEPA Analysis, Documentation, and Studies . . . . . . . . . . . . . . . . . . . . 86 Section 2015: Gas Hydrate Production Incentive . . . . . . . . . . . . . . . . 86 Section 2016: Onshore Deep Gas Production Incentive . . . . . . . . . . . 86 Section 2017: Enhanced Oil and Natural Gas Production . . . . . . . . . . 87 Section 2018: Oil Shale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Section 2019: Use of Information about Oil and Gas Public Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Subtitle B — Access to Federal Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Sections 2021- 2027: Leasing and Permitting Processes . . . . . . . . . . . 87 Section 2028: Fair Market Rental Value Determinations for Public Land and Forest Service Rights-of-Way . . . . . . . . . . . . . . 87 Section 2029: Energy Facility Rights-of-Way and Corridors on Federal Lands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Section 2030: Consultation Regarding Energy Rights-of-Way on Public Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Section 2031: Electricity Transmission Line Right-of-Way in Cleveland National Forest and Adjacent Public Land . . . . . . . . 88 Section 2032: Sense of Congress Regarding Development of Minerals Under Padre Island National Seashore . . . . . . . . . . . . . 88 Section 2033: Livingston Parish Mineral Rights Transfer . . . . . . . . . . 88 Subtitle C — Naval Petroleum Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Sections 2041-2044: Naval Petroleum Reserves . . . . . . . . . . . . . . . . . 88 Subtitle D — Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Section 2051: Split-Estate Federal Oil and Gas Leasing and Development Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Section 2052: Royalty Payments Under Certain Leases . . . . . . . . . . . 89 Section 2053: Domestic Offshore Energy Reinvestment . . . . . . . . . . . 89 Section 2054: Repurchase of Leases That Are Not Allowed To Be Explored or Developed . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Section 2055: Limitation on Required Review Under NEPA . . . . . . . 91 Title XXI — Coal — Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Sections 2101-2109: Federal Coal Leases . . . . . . . . . . . . . . . . . . . . . . 91 Title XXII — Energy Development in Arctic Refuge . . . . . . . . . . . . . . . . . . . . . 92 Current Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Section 2201: Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Section 2202: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Section 2203: Leasing Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Section 2204: Leasing Procedures, Bidding System, Minimum Acreage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Section 2205: Grant of Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Section 2206: Terms and Conditions of Leases; Project Labor Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Section 2207: Environmental Protection . . . . . . . . . . . . . . . . . . . . . . 94 Section 2208: Expedited Judicial Review . . . . . . . . . . . . . . . . . . . . . 95 Section 2209: Federal and State Distribution of Revenues; Low Income Home Energy Assistance . . . . . . . . . . . . . . . . . . . . . . . . 95 Section 2210: Rights of Way Across the Coastal Plain . . . . . . . . . . . 96 Section 2211: Surface and Subsurface Estate Conveyance to Native Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Section 2212: Local Government Impact and Community Service Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Title XXIII — Set America Free (SAFE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Sections 2301- 2305: The Set America Free Act of 2005 . . . . . . . . . . 96 Title XXIV — Grand Canyon Hydrogen-Powered Transportation Demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Sections 2401-2406 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Title XXV — Additional Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Section 2501: Wind Energy Royalty Relief . . . . . . . . . . . . . . . . . . . . . 97 List of Tables Table 1. Authorizations in H.R. 6 as passed by the House . . . . . . . . . . . . . . . . . 98 Omnibus Energy Legislation, 109th Congress: Assessment of H.R. 6 as passed by the House Introduction Since the Arab oil embargo in 1973-1974, Congress has periodically taken up energy policy legislation with a comprehensive scope — often spurred by the price of oil and U.S. dependence upon imported oil. The price of crude oil began to rise in 2003 and briefly approached $60/barrel (bbl) in the spring of 2005, setting the scene for renewed debate over omnibus energy legislation in the 109th Congress. National and world demand for oil continues to grow. However, domestic oil production in the United States continues to decline. As a consequence, the gap between U.S. production and consumption has had to be covered by increased oil imports. These imports, roughly 6 million barrels per day (mbd) after the Arab oil embargo, now exceed 10 mbd to satisfy U.S. oil consumption of nearly 21 mbd.1 Addressing dependence on imported oil raises a number of issues touching on both demand and consumption of fossil fuels. Chief among these are the production of additional fossil fuels, development of alternative energy sources, and conservation and energy efficiency. Energy infrastructure has also been a growing issue, including the oil refining and distribution sector, and electricity transmission, reliability, and regulation. Increased use of domestic coal and reassessment of many issues associated with nuclear energy have drawn attention as well. Developing a comprehensive approach to energy policy that balances economic, security, and environmental issues — as well as competing regional priorities in the United States — is an enormous challenge for policymakers. Keeping a clear eye on distinguishing between short- and long-term policies is also difficult, but important in keeping expectations realistic for what comprehensive legislation can achieve. In the 109th Congress, the House approved an omnibus energy bill (H.R. 6) on April 21, 2005, that would open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing, substantially change oversight of electric utilities, increase the use of alternative motor fuels, provide $8.1 billion in energy tax incentives, extend the nuclear accident liability system, and authorize numerous energy R&D programs. The House-passed bill contains many provisions from the conference version of an 1 U.S. Department of Energy, Energy Information Administration, at [http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_ status_report/current/pdf/tableh1.pdf]. CRS-2 omnibus energy bill (also H.R. 6) in the 108th Congress that was blocked by a Senate filibuster. The bill would mandate increasing levels of ethanol production through 2012 but allow regions to opt out under certain conditions. Use of methyl tertiary butyl ether (MTBE) as a domestic gasoline additive would be banned by the end of 2014, but the President could void the ban and a state could authorize continued use. Producers of MTBE and renewable fuels would be granted protection (a “safe harbor”) from product liability lawsuits, a provision that proved highly contentious in the 108th Congress. Royalty reductions would be provided for marginal oil and gas wells on federal lands and the outer continental shelf. Provisions are also included to increase access by energy projects to federal lands. Several new statutory efficiency standards would be established for consumer and commercial products and appliances, and other standards could be set by the Department of Energy (DOE). Funding authorizations in the bill total about $82 billion over 10 years. (The likely cost of the funding authorizations has not yet been estimated by the Congressional Budget Office.) Major Provisions Electricity Regulation. Title XII would create an electric reliability organization (ERO) that would enforce mandatory reliability standards for the bulkpower system. All ERO standards would be approved by the Federal Energy Regulatory Commission (FERC). Under this Title, the ERO could impose penalties on a user, owner, or operator of the bulk-power system that violates any FERCapproved reliability standard. This Title also addresses transmission infrastructure issues. The Secretary of Energy would be able to certify congestion on the transmission lines and issue permits to transmission owners. Permit holders would be able to petition in U.S. District Court to acquire rights-of-way for the construction of transmission lines through the exercise of the right of eminent domain. A provision that would have required FERC to approve participant funding for new transmission lines was removed in markup by the House Committee on Energy and Commerce. FERC’s Standard Market Design notice of proposed rulemaking would be remanded. Native load service obligations would be clarified, and federal utilities would be allowed to participate in regional transmission organizations. The electricity title would repeal the mandatory purchase requirements under the Public Utility Regulatory Policy Act. The Public Utility Holding Company Act of 1935 (PUHCA) would be repealed. The Federal Energy Regulatory Commission and state regulatory bodies would be given access to utility books and records. FERC would be required to issue rules to establish an electronic system that provides information about the availability and price of wholesale electric energy and transmission services. For electric rates that the Federal Energy Regulatory Commission finds to be unjust, unreasonable, or unduly discriminatory, the effective CRS-3 date for refunds would begin at the time of the filing of a complaint with FERC but not later than five months after filing of a complaint. Criminal and civil penalties would be increased. The Federal Power Act would be amended to give FERC review authority for transfer of assets valued in excess of $10 million. (For additional discussion on these issues, see CRS Report RL32728, Electric Utility Regulatory Reform: Issues for the 109th Congress; and CRS Report RL32133, Federal Merger Review Authority.) Renewable Fuel Standard and MTBE. As passed by the House, H.R. 6 would amend the Clean Air Act to eliminate the requirement that reformulated gasoline (RFG) contain 2% oxygen to reduce automotive emissions, a requirement which prompted the widespread use of MTBE and, to a lesser degree, ethanol. Instead, the bill would establish a new requirement that an increasing amount of gasoline contain renewable fuels such as ethanol. The bill would require that 3.1 billion gallons of renewable fuel be used in 2005, increasing to 5.0 billion gallons by 2012 (as compared to 3.4 billion gallons used in 2004). However, concerns have been raised that this requirement could significantly raise the pump price for gasoline in some areas. Because of concerns over drinking water contamination by MTBE (a major competitor with ethanol), the bill would ban the use of MTBE in motor vehicle fuel, except in states that specifically authorize its use, not later than December 31, 2014. The ban has two possible exceptions. First, EPA may allow MTBE in motor fuel up to 0.5 percent by volume, in cases that the Administrator determines to be appropriate; and second, the President may make a determination, not later than June 30, 2014, that the restrictions on the use of MTBE shall not take place. The bill would also authorize $2.0 billion to assist the conversion of merchant MTBE production facilities to the production of other fuel additives. Further, the bill would preserve the reductions in emissions of toxic substances achieved by the RFG program. One of the most controversial provisions in H.R. 6 is the establishment of a “safe harbor” from product liability lawsuits for producers of MTBE and renewable fuels. The safe harbor provision would protect anyone in the product chain, from manufacturers down to retailers, from liability for cleanup of MTBE and renewable fuels or for personal injury or property damage based on the product being deemed defective. (That legal approach has been used in California to require refiners to shoulder liability for MTBE cleanup.) The safe harbor would be retroactive to September 5, 2003. Prior to that date, five lawsuits had been filed. After that date, at least 150 suits were filed, on behalf of 210 communities in 15 different states. (For additional information, see CRS Report RL32865, Renewable Fuels and MTBE: A Comparison of Selected Legislative Initiatives; CRS Report RL30369, Fuel Ethanol: Background and Public Policy Issues; and CRS Report RL32787, MTBE in Gasoline: Clean Air and Drinking Water Issues.) Energy Taxes. After the failure of the conference report on H.R. 6 in the 108th Congress, several of the measure’s energy tax provisions — estimated at $1.3 billion over 10 years — were included in the Working Families Tax Relief Act of CRS-4 2004 (P.L. 108-311), enacted on October 4, 2004. About $5 billion in additional energy tax incentives over 10 years were part of the American Jobs Creation Act of 2004 (P.L. 108-357) enacted on October 22, 2004. Many of the energy tax incentives in H.R. 6 from the 108th Congress that were not enacted in 2004 have been repackaged into the House-passed H.R. 6 in the 109th Congress. The bill would reduce energy taxes about $8.1 billion over 10 years as compared with $23.5 billion in H.R. 6 in the 108th Congress. President Bush’s FY2006 budget request was for $6.7 billion in energy tax incentives. Counting the tax provisions enacted in the 108th Congress, the House-passed version of H.R. 6 excludes roughly $9 billion in tax breaks from the H.R. 6 conference report in the 108th Congress. H.R. 6’s tax cuts are weighted primarily toward energy (oil, gas, and electricity) production and supply, particularly energy infrastructure. The most notable provisions would accelerate depreciation deductions for natural gas gathering lines and distribution lines, and significantly reduce the depreciation period for transmission assets and for oil and gas production. (For more background, see CRS Issue Brief IB10054, Energy Tax Policy.) Nuclear Energy. 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 $10.7 billion. Price-Anderson also authorizes the Department of Energy 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. H.R. 6 would provide a 20-year extension of Price-Anderson to the end of 2025. 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 bill would also require the Nuclear Regulatory Commission (NRC) to assess nuclear power plant security and require additional security measures. The bill would authorize $1.3 billion for a nuclear-hydrogen cogeneration project at the Idaho National Laboratory, along with five projects to demonstrate hydrogen production at existing nuclear power plants. In addition to the hydrogen cogeneration projects, about $1.3 billion would be authorized for DOE to design, build, and operate an advanced technology nuclear reactor by 2015. Not included in the House-passed bill is a 1.8 cents per kilowatt-hour nuclear energy tax credit that would have been provided by the conference report on H.R 6 in the 108th Congress. (For more information, see CRS Issue Brief IB88090, Nuclear Energy Policy.) CRS-5 Renewable Energy and Efficiency. H.R. 6 would legislate new energy efficiency standards for several consumer and commercial products and appliances. For certain other products and appliances, DOE would be empowered to set new standards. Also, the bill would provide increased funding authorizations for the DOE weatherization program and establish a voluntary program to promote energy efficiency in industry. However, the bill does not include one of the top priorities of environmental groups: a renewable portfolio standard (RPS), which would require retail electricity suppliers to obtain a minimum percentage of their power from a portfolio of new renewable energy resources. (For additional information, see CRS Issue Brief IB10020, Energy Efficiency: Budget, Oil Conservation and Electricity Conservation Issues, and CRS Issue Brief IB10041, Renewable Energy: Tax Credit, Budget, and Electricity Production Issues.) Arctic National Wildlife Refuge. The congressional debate over whether to open ANWR to energy development has continued for more than 40 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. Development advocates argue that ANWR oil would reduce U.S. energy markets’ exposure to crises in the Middle East; boost North Slope oil production; lower oil prices; extend the economic life of the Trans Alaska Pipeline System; and create many jobs in Alaska and elsewhere in the United States. They maintain that ANWR oil could be developed with minimal environmental harm, and that the footprint of development could be limited to a total of 2,000 acres. Opponents of development in ANWR argue that intrusion on this ecosystem cannot be justified on any terms; that economically recoverable oil found (if any) would provide little energy security and could be replaced by cost-effective alternatives, including conservation; and that job claims are overstated. They also maintain that the footprint of oil development, despite a provision in the measure to limit certain facilities to 2,000 acres, would still be scattered in many parcels across the landscape, and would have a greater impact than is implied by any limit on total acreage. They also argue that past proposals to limit any footprint have not been worded so as to apply clearly to the extensive Native lands in the Refuge, which could be developed if the Arctic Refuge were opened. On April 20, 2005, the House rejected the Markey/Johnson amendment (H. Amdt 73) to strike the ANWR title (yeas 200, nays 231, Roll Call #122). (For additional information, see CRS Issue Brief IB10136, The Arctic National Wildlife Refuge: Controversies for the 109th Congress; and CRS Reports RL31115, Legal Issues Related to Proposed Drilling for Oil and Gas in the Arctic National Wildlife Refuge and CRS Report RS22143, Oil and Gas Leasing in the Arctic National Wildlife Refuge (ANWR): the 2,000-Acre Limit). Domestic Energy Production. The Department of the Interior (DOI) has estimated that roughly a quarter of oil resources and less than one-fifth of gas resources on Indian lands have been developed. H.R. 6 would allow Indian tribes to enter into business agreements with energy developers without obtaining prior CRS-6 approval from the Department of the Interior, but only if DOI has already approved the tribe’s regulations governing such energy agreements. To encourage production on federal lands, royalty reductions would be provided for marginal oil and gas wells on public lands and the outer continental shelf. Provisions are also included to increase access to federal lands by energy projects — such as drilling activities, electric transmission lines, and gas pipelines. Hydrogen and Fuel Cells. H.R. 6 would authorize $4 billion for FY2006-2010 for hydrogen and fuel cell R&D. The bill would also establish a goal of producing commercial fuel cell vehicles and developing hydrogen infrastructure by 2020. Critics of the Administration suggest that the hydrogen program is intended to forestall any attempts to significantly raise vehicle Corporate Average Fuel Economy (CAFE) standards, and that it relieves the automotive industry of assuming more initiative in pursuing technological innovations. On the other hand, some contend that it is appropriate for government to become involved in the development of technologies that could address national environmental and energy goals but are too risky to draw private-sector investment. (For additional information, see CRS Report RS21442, Hydrogen and Fuel Cell R&D: FreedomCAR and the President’s Hydrogen Fuel Initiative; and CRS Report RL32196, A Hydrogen Economy and Fuel Cells: An Overview.) CRS-7 Organization of Report The remainder of this report provides a section-by-section summary of the House-passed version of H.R. 6. Some of the most controversial sections are discussed in greater detail, while multiple sections that deal with a single program have been combined. Funding authorizations are shown in Table 1 at the end of the report. The following analysts in the CRS Resources, Science, and Industry Division contributed to this report: ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Amy Abel, electric utilities; Anthony Andrews, nuclear security, DOE management; Robert Bamberger, energy security; Carl Behrens, nuclear nonproliferation; Claudia Copeland, Federal Water Pollution Control Act; Lynne Corn, ANWR; Bernard Gelb, gasoline industry; Carol Glover, Native American energy, general authorizations; Mark Holt, nuclear energy; Marc Humphries, federal energy leasing, coal; Larry Kumins, oil and gas; Salvatore Lazzari, taxes; Jim McCarthy, Clean Air Act, MTBE; Dan Morgan, science programs; Kyna Powers, hydropower; Fred Sissine, conservation and renewable energy; Mary Tiemann, underground storage tanks, drinking water; Brent Yacobucci, motor fuels; Jeff Zinn, Coastal Zone Management Act. CRS-8 Title I — Energy Efficiency Subtitle A — Federal Programs Section 101: Energy and Water Saving Measures in Congressional Buildings. The Architect of the Capitol would be required to plan and implement an energy and water conservation strategy for congressional buildings that would be consistent with that required of other federal buildings. An annual report would be required. Up to $2 million would be authorized. 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. Section 102: Energy Management Requirements. The baseline for federal energy savings would be updated from FY1985 to FY2003 and a new goal of 20% reduction would be set for FY2015. At that time, DOE would be directed to assess progress and set a new goal for FY2025. Section 202 of Executive Order 13123 uses FY1985 as the baseline for measuring federal building energy efficiency improvements and calls for a 35% reduction in energy use per gross square foot by FY2010. Most of the other provisions for federal agencies in this Subtitle are administrative measures that would help agencies achieve the above-described goal. Section 103: Energy Use Measurement and Accountability. Federal buildings would be required to be metered or sub-metered by late 2010, to help reduce energy costs and promote energy savings. Section 104: Procurement of Energy-Efficient Products. Statutory authority would be created to require federal agencies to purchase products certified as energy-efficient under the Energy Star program or energy-efficient products designated by the Federal Energy Management Program (FEMP) — provided the products are found to be “cost-effective” and “reasonably-available.” Currently, Section 403 of Executive Order 13123 directs federal agencies to purchase life-cycle cost-effective Energy Star products. Section 105: Energy Savings Performance Contracts. This would amend the National Energy Conservation Policy Act (42 U.S.C. 8287) by limiting all federal agencies combined to a total of 100 energy savings performance contracts and payments of no more than a total of $500,000,000. Under such contracts, energy saving measures are installed at government facilities by private-sector firms in return for a share of the resulting energy cost reductions. The Sunset and Reporting Provisions of section 801(c) of the Act would be effectively repealed October 1, 2006, and any new contract after that date would be included in the contract limits. Section 107: Voluntary Commitments to Reduce Industrial Energy Intensity. DOE would be authorized to form voluntary agreements with industry sectors or companies to reduce energy use per unit of production by an unspecified amount. 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). CRS-9 Section 108: Advanced Building Efficiency Testbed. DOE would be required to create a program to develop, test, and demonstrate advanced federal and private building efficiency technologies. Section 109: Federal Building Performance Standards. DOE would be directed to set revised energy efficiency standards for new federal buildings at a level 30% stricter than industry or international standards — provided the standards would be “life-cycle cost-effective.” Mandatory energy efficiency performance standards for federal buildings are currently set in Section 305(a) of P.L. 94-385 and implemented through 10 CFR Part 435. Section 111: Daylight Savings. Daylight saving time would begin one month earlier (in March) and end one month later (in November). This is expected to reduce energy used for night-time electric lighting. Under current law (Uniform Time Act, P.L. 89-387, §3a), states can choose whether to participate. However, if a state chooses to participate, the duration of daylight savings is set by federal law. Section 112: Enhancing Energy Efficiency in Management of Federal Lands. National parks, forests, and wildlife refuges would be required to employ energy efficiency measures in buildings and energy-efficient vehicles (including biodiesel and hybrid engines) “to the extent practicable.” Subtitle B — Energy Assistance and State Programs Section 121: Low Income Home Energy Assistance Program (LIHEAP). Increased funding would be authorized for the LIHEAP grant program for FY2005 through FY2007. Department of Health and Human Services funding for LIHEAP was authorized through FY2003 in the Human Services Authorization Act of 1998. Also, states and their designees would be allowed to use renewable fuels (including biomass) to carry out the purposes of this section. Section 122: Weatherization Assistance. Increased funding would be authorized for the DOE weatherization grant program for FY2006 through FY2008. Funding for the program was authorized through FY2003 under 42 U.S.C. 6872. Section 123: State Energy Programs. New requirements would be set for state energy conservation goals and plans. Also, increased funding would be authorized for FY2006 through FY2008 for DOE state energy grant programs. Section 124: Energy-Efficient Appliance Rebate Programs. DOE would be authorized to fund rebate programs in eligible states to support residential end-user purchases of Energy Star products. Section 125: Energy-Efficient Public Buildings. A grant program would be created for energy-efficient renovation and construction of local government buildings. Section 126: Low Income Community Energy Efficiency Pilot Program. A pilot energy-efficiency and renewable energy grant program would be CRS-10 created for local governments, private companies, community development corporations, and Native American economic development entities. Subtitle C — Energy-Efficient Products Section 131: Energy Star Program. DOE and EPA would be given statutory authority to carry out the Energy Star program, which identifies and promotes energy-efficient products and buildings. Section 132: HVAC Maintenance Consumer Education Program. DOE would be required to implement a public education program for homeowners and small businesses that explained the energy-saving benefits of improved maintenance of heating, ventilating, and air conditioning equipment. Also, the Small Business Administration would be directed to assist small businesses in becoming more energy-efficient. Section 133: Energy Conservation Standards for Additional Products. DOE would be directed to issue a rule that determined whether efficiency standards should be set for standby mode in battery chargers and external power supplies. Also, energy efficiency standards would be set by statute for exit signs, traffic signals, torchieres (floor lamps), distribution transformers (electric utility equipment), unit heaters (fan-type heaters, usually portable), and medium base compact fluorescent lamps (CFLs). Further, DOE would be directed to issue a rule that prescribed efficiency standards for ceiling fans, vending machines, commercial refrigerators and freezers and refrigerator-freezers, and residential fans. Section 134: Energy Labeling. The Federal Trade Commission (FTC) would be required to consider improvements in the effectiveness of energy labels for consumer products. Also, DOE or FTC would be directed to consider prescribing labeling requirements for many of the products listed in Section 133 of the bill. The FTC is currently required by Section 324(a) of the Energy Policy and Conservation Act (P.L. 94-163) to issue rules for energy efficiency labels on consumer products (42 U.S.C. 6294). Section 135: Preemption. As of January 1, 2006, the energy efficiency standard for ceiling fans set out in Section 133 shall supersede all state and local standards for ceiling fans. Section 136: State Consumer Product Energy Efficiency Standards. If the product efficiency standards set forth in Section 133 are not implemented within three years of this law’s enactment, the federal preemption of state standards will expire. Section 137: Intermittent Escalators. With certain exceptions, all new escalators acquired for federal buildings will operate on an intermittent (on-demand) basis. CRS-11 Subtitle D — Public Housing Section 141: Capacity Building for Energy-Efficient, Affordable Housing. Activities would be required that would provide energy-efficient, affordable housing and other residential measures under the HUD Demonstration Act. Section 142: Increase of CDBG Public Services Cap for Energy Conservation and Efficiency Activities. The amount of community development block grant (CDBG) public services funding that could be used for energy efficiency would be increased to 25%. The current limit is 15% under Section 105(a)(8) of the Housing and Community Development Act of 1974. Section 143: FHA Mortgage Insurance Incentives for EnergyEfficient Housing. Solar energy equipment can be eligible for up to 30% of the total amount of property value that can be covered by Federal Housing Administration mortgage insurance. The current limit is 20% under Section 203(b)(2) of the National Housing Act. Section 144: Public Housing Capital Fund. The Public Housing Capital Fund would be modified to include certain energy- and water-use efficiency improvements. Under Section 9 of the United States Housing Act, the Capital Fund is available to public housing agencies to develop, finance, and modernize public housing developments and to make management improvements to these housing facilities. There is currently no provision for energy conservation projects that involve water-conserving plumbing fixtures and fittings. Section 145: Grants for Energy-Conserving Improvements for Assisted Housing. The Department of Housing and Urban Development (HUD) would be directed to provide grants for certain energy and water efficiency improvements to multifamily housing projects. Section 2(a)(2) of the National Housing Act, as amended by Section 251(b)(1) of the National Energy Conservation Policy Act, empowers HUD to make grants for energy conservation projects in public housing, but it has no provision for energy- and water-conserving plumbing fixtures and fittings. Section 147: Energy-Efficient Appliances. Public housing agencies would be required to purchase cost-effective Energy Star and FEMP-designated appliances and products. Section 148: Energy-Efficient Standards. The energy efficiency standards and codes that the federal government encourages states to use would be changed from the codes set by the Council of American Building Officials to the 2003 International Energy Conservation Code. Section 149: Energy Strategy for HUD. The Secretary of Housing and Urban Development would be required to implement an energy conservation strategy to reduce utility expenses through cost-effective energy-efficient design and construction of public and assisted housing. CRS-12 Title II — Renewable Energy Subtitle A — General Provisions Section 201: Assessment of Renewable Energy Resources. DOE would be required to report annually on resource potential, including solar, wind, biomass, ocean (tidal, wave, current, and thermal), geothermal, and hydroelectric energy resources. DOE would be required to review available assessments and undertake new assessments as necessary, accounting for changes in market conditions, available technologies, and other relevant factors. The resource potential for renewables has not been assessed as thoroughly as that for conventional energy resources, and the potential may be altered somewhat by climate change. Section 202: Renewable Energy Production Incentive. Eligibility for the existing incentive would be extended through 2025 and expanded to include electric cooperatives and tribal governments. Qualifying resources would be expanded to include landfill gas, livestock methane, and ocean (tidal, wave, current, and thermal) energy. Federal law currently provides a 1.5 cent/kwh incentive for power produced from wind and biomass by state and local governments and nonprofit electrical cooperatives.2 The incentive is funded by appropriations to DOE and was created to encourage public agencies, which are not eligible for tax incentives, in a fashion parallel to the renewable energy production tax credit for private sector businesses. This incentive has played a major role in wind energy development and is viewed by the wind industry as the single-most important provision in the bill. Section 203: Federal Purchase Requirement. Federal agencies would be required, to the extent “economically feasible and technically practicable,” to purchase power produced from renewable sources. The collective total percentage of renewables use, as a share of total federal electric energy use, would start at 3% in FY2007, rise to 5% in FY2010, and then reach 7.5% in 2013 and all subsequent years. Renewable energy produced at a federal site, on federal lands, or on Indian lands would be eligible for double credit toward the purchase requirement. This provision aims to help develop the market for renewables. A report to Congress would be required every two years. Section 204: Insular Areas Energy Security. This section includes congressional findings that electric power transmission and distribution lines in insular areas are not adequate to withstand hurricane and typhoon damage, and that an assessment is needed of energy production, consumption, infrastructure, reliance on imported energy, and indigenous sources of energy in insular areas. Federal law currently requires comprehensive energy plans for insular areas that describe the potential for renewable energy resources.3 This section would require the Secretary of the Interior, in consultation with the Secretary of Energy and the head of government of each insular area, to update insular area plans by 2007 to reflect these findings, and to seek to reduce energy imports by increasing energy conservation and 2 Energy Policy Act, Sec. 1212 (42 U.S.C. 13317) 3 42 U.S.C. 1492 . CRS-13 energy efficiency and by attempting to maximize the use of indigenous resources. Annual appropriations would be authorized that would, in part, be used for matching grants (federal share maximum is 75%) for projects designed to protect electric power transmission distribution lines in one or more of the territories of the United States from damage caused by hurricanes and typhoons. Section 205: Use of Photovoltaic Energy in Public Buildings. The General Services Administration (GSA) would be authorized to encourage use of solar photovoltaic energy systems in new and existing buildings. This provision aims to help reduce federal fossil fuel use. Further, it seeks to reduce costs and, thereby, stimulate the market for photovoltaic equipment. Section 206: Federal Procurement of Biobased Products. This provision amends the existing requirement4 that federal agencies give procurement preference to items composed of the highest percentage of biobased products practicable by adding a specific reference to degradable six-pack rings.5 Section 207: Renewable Energy Security. For the DOE Weatherization grant program, Section 207(a) increases the limit on support for renewable energy equipment from $2,500 to $3,000 per dwelling unit. Also, Section 207(d) creates a consumer rebate for renewable energy equipment installed in a dwelling or small business. The maximum rebate is the lesser of 25% of equipment cost or $3,000. Section 208: Installation of Photovoltaic System. This provision authorizes $20 million for the Administrator of GSA to proceed with the Sun Wall Design Project, the winning entry in a national design competition sponsored jointly by DOE and the National Renewable Energy Laboratory, to install a photovoltaic solar electric system on the headquarters building of DOE. Section 209: Sugar Cane Ethanol Pilot Program. This provision authorizes a three-year demonstration program for the production of ethanol in Hawaii to parallel the existing program for corn to show that the process can be applicable to cane sugar and can be replicated on a larger scale once the sugar cane industry has located a site and constructed ethanol production facilities. Subtitle C — Hydroelectric Section 231: Alternative Conditions and Fishways. Under the Federal Power Act (FPA, 16 U.S.C. 797 et. seq.) the Federal Energy Regulatory Commission has primary responsibility for balancing multiple water uses and evaluating hydropower relicensing applications. However, the FPA also creates a role in the licensing process for federal agencies that are responsible for managing fisheries or federal reservations (e.g. national forests, etc.). Specifically, sections 4(e) and 18 of 4 7 U.S.C. 8201(c)(1) gives preference to procurement of items made with the highest percentage of biobased products. 5 42 U.S.C. 6914b-1 provides for use of naturally degradable material in plastic ring carriers to help reduce litter and to protect fish and wildlife. CRS-14 the FPA give certain federal agencies the authority to attach conditions to FERC licenses. For example, federal agencies may require applicants to build passageways through which fish can travel around the dam, schedule periodic water releases for recreation, ensure minimum flows of water for fish migration, control water release rates to reduce erosion, or limit reservoir fluctuations to protect the reservoir’s shoreline habitat. Once an agency issues such conditions, FERC must include them in its license. While these conditions often generate environmental or recreational benefits, they may also require construction expenditures and may increase costs by reducing operational flexibility. This provision in H.R. 6 would allow license applicants to propose alternative license conditions, and would require federal agencies to consider alternatives proposed by license applicants. It would also require an agency to accept an applicant’s proposed alternative if it found that the alternative (1) provides for the adequate protection and utilization of the federal reservation, or is no less protective of the fish resource than the fishway initially prescribed, and (2) costs less to implement, and/or will improve operation of the project for electricity production. H.R. 6 also requires agencies that are issuing conditions to provide FERC with a written statement demonstrating that the relevant Secretary gave “equal consideration” to the effects of the conditions on factors such as energy supply, flood control, navigation, water supply, and air quality. This equal consideration clause may be a topic of debate during further consideration of H.R. 6. Opponents of the provision are concerned that it would hamper agencies’ ability to protect the resources under their jurisdiction; proponents argue that conditioning agencies, like FERC, should be required to balance competing water uses. Section 241: Hydroelectric Production Incentives. The Secretary of Energy would make incentive payments to non-federal owners or operators of hydroelectric facilities for power that is first produced within 10 years of the date of enactment by generating equipment added to existing facilities. Payments of 1.8 cents per kilowatt-hour (kWh), up to a total of $750,000/year, may be made for up to 10 years from the first year after the facility begins operating. Section 242: Hydroelectric Efficiency Improvement. The Secretary of Energy would 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 would not exceed 10% of the improvement cost and would not exceed $750,000 at any single facility. Section 243: Small Hydroelectric Power Projects. This provision would amend the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2078), to change the date on or before which a dam must be constructed to qualify as an existing dam, from April 20, 1977, to March 4, 2003. CRS-15 Title III — Oil and Gas Subtitle A — Petroleum Reserve and Home Heating Oil Section 301: Permanent Authority to Operate the Strategic Petroleum Reserve. Congress authorized the Strategic Petroleum Reserve (SPR) in the Energy Policy and Conservation Act (EPCA, P.L. 94-163) to help prevent a repetition of the economic dislocation caused by the 1973-74 Arab oil embargo. Physically, the SPR comprises five underground storage facilities, hollowed out from naturally occurring salt domes, located in Texas and Louisiana. In 2000, Congress also authorized establishment of a Northeast Heating Oil Reserve (NHOR) where two million barrels of home heating oil is kept in leased, above-ground storage, to be released if the price of heating oil exceeds a calculated historic average. The authorities governing the SPR and NHOR are included in the Energy Policy and Conservation Act (EPCA, P.L. 94-163) and are currently authorized through FY2008 by P.L. 108-7. These authorities also provide for U.S. participation in emergency activities of the International Energy Agency (IEA) without risking violation of antitrust law and regulation. The House bill would permanently reauthorize both programs, avoiding awkward periods such as occurred in 2000 when differences between the House and Senate over certain issues resulted in a period of several months when the authorities were not in force. Section 302: National Oilheat Research Alliance. The National Oilheat Research Alliance (NORA) was established by the Energy Policy Act of 2000 (P.L. 106-469), and assesses a fee of $.002 per gallon on home heating oil sold by retail distributors. The proceeds, among other purposes, are dedicated to research on improving the efficiency of furnaces and boilers, and providing education and training resources to professionals in the industry. The House bill would extend the authorization for NORA until nine years (2010) after the date on which the Alliance was established. Section 303: Site Selection. Pursuant to Section 310(d), the Secretary of Energy would be required, within one year of the enactment of the legislation, to select sites — from among those that have been previously studied — for expansion of the SPR to its fully authorized volume of one billion barrels. Section 304: Suspension of Strategic Petroleum Reserve Deliveries. Producers of offshore leases in the Gulf of Mexico pay a royalty to the U.S. Treasury based upon production at their sites. Since 1999, most new fill of the SPR has been accomplished by the acceptance of royalty-in-kind (RIK) oil from these producers in lieu of cash paid to the Treasury. Some policymakers have objected to RIK deliveries, arguing that diverting any oil from the markets was contributing to rising crude prices. The Administration argued that the volumes involved, never more than 200,000 b/d and often less, was not large enough to have the effect on prices that some alleged. The SPR holds roughly 700 million barrels. Current capacity is estimated at 727 million barrels. It is not apparent whether the Administration plans to continue RIK fill after current contracts end during the CRS-16 summer of 2005. Should the Administration do so, this provision of H.R. 6 would permit accepting deliveries of RIK oil only when crude prices were below $40/barrel. Subtitle B — Production Incentives Section 320: Liquefied Natural Gas. This section would expand the scope of the Natural Gas Act (15 U.S.C. 717b) to include importing and exporting natural gas as well as the construction of liquefaction and re-gasification facilities. Building and operating such facilities would require authorization by the Federal Energy Regulatory Commission. FERC would be designated as lead agency for the purpose of coordinating all applicable federal authorizations, and for coordinating compliance with the National Environmental Policy Act of 1969 (42 U.S.C.4312). FERC would set a schedule ensuring expeditious administrative proceedings, and compile the consolidated record of all state and federal proceedings. The section would limit the criteria upon which FERC could reject a proposed liquefied natural gas (LNG) project or a facility expansion. FERC could deny an application only by finding the project not in the public interest, or that the project sponsor was not capable of constructing and operating an LNG facility. FERC would be barred from imposing certain conditions on an applicant — such as the provision of additional services. Additionally, FERC could not deny a “certificate of convenience and necessity”prior to January 1, 2011, solely because a facility would be at least partly dedicated to importing the project sponsor’s own natural gas. FERC would be tasked to issue a construction certificate within one year of application. Judicial review would be exclusively delegated to the U.S. Court of Appeals for the District of Colombia Circuit, which must provide expedited consideration. Current Law. Under the Natural Gas Act, FERC reviews jurisdictional project proposals (including those for natural gas importation) to determine if a public need would be met. A wide variety of criteria are applied in making such a determination. The Commission can reject a project for a range of reasons, including impact on the competitive nature of U.S. natural gas markets. Section 327: Hydraulic Fracturing. This section would amend the Safe Drinking Water Act (SDWA), Section 1421(d), to specify that the definition of “underground injection” excludes the injection of fluids or propping agents used in hydraulic fracturing operations related to oil or gas production activities. Responding to a 1997 court ruling that directed EPA to regulate hydraulic fracturing as underground injection, this section would expressly preclude EPA from regulating the underground injection of fluids used in hydraulic fracturing for oil and gas production. This provision is unchanged from the conference report for H.R. 6 in the 108th Congress. Current Law. The SDWA required EPA to promulgate regulations for state underground injection control (UIC) programs that included minimum requirements for programs to prevent underground injection that endangers sources of drinking water. The Act specifies that UIC program regulations may not prescribe requirements that interfere with “any underground injection for the secondary or CRS-17 tertiary recovery of oil or natural gas, unless such requirements are essential to assure that underground sources of drinking water will not be endangered by such injection” (§1421(b)(2)). Policy Context. Before 1997, EPA had not considered regulating hydraulic fracturing for oil and gas development, because it did not view this well-production process as an activity subject to regulation under SDWA’s UIC program. In 1997, the 11th Circuit Court of Appeals ruled that the injection of fluids for the purpose of hydraulic fracturing constituted underground injection, that all underground injection must be regulated, and that hydraulic fracturing of coalbed methane (CBM) wells in Alabama must be regulated under the state’s UIC program (LEAF v. EPA, 118 F. 3d 1467). Hydraulic fracturing involves the high-pressure injection of fluids into coal beds to enhance the recovery of oil and natural gas from underground formations. Waterbased fluids are typically used as fracturing fluids; however, diesel fuel often is used instead of water, and various chemicals are added to fracturing fluids.6 While hydraulic fracturing has been used in the recovery of conventional oil and gas since the 1950s, this practice has been used for CBM recovery mainly since the 1990s. A growing concern is that, in many CBM-producing regions, the target coalbeds occur within underground sources of drinking water, and the fracturing process injects fluids directly into the drinking water sources; EPA has determined that the use of diesel fuel as a fracturing fluid introduces benzene and other toxic substances directly into underground sources of drinking water.7 Also, because the process fractures rock, fracturing can create new pathways for natural gas (primarily methane) to enter drinking water aquifers. As the number of coalbed methane (CBM) wells and the use of hydraulic fracturing have increased rapidly in recent years, so has concern over the potential impact on water resources, particularly in the water-scarce West, and very few studies have been done to evaluate these impacts. In 2003, EPA’s National Drinking Water Advisory Council recommended that EPA (1) work to eliminate the use of diesel fuel and related additives in fracturing fluids that are injected into formations containing drinking water sources; (2) continue to study the problems that could occur from hydraulic fracturing for CBM production; and (3) defend its discretion to implement the UIC program in a way that advances protection of groundwater resources from contamination. 6 Environmental Protection Agency, Evaluation of Impacts to Underground Sources of Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs, Washington, D.C., June 2004, pp. 4-3 - 4-4. 7 Environmental Protection Agency, Evaluation of Impacts to Underground Sources of Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs, pp. 1-6. According to EPA, hydraulic fracturing of oil and gas found in conventional geologic traps is well established; however, hydraulic fracturing of coal beds is relatively new. Conventional sites are usually very deep and involve saline ground water that is unsuitable for drinking water. In contrast, formations that contain coal bed methane can be near the surface where ground water may be used as a source of drinking water supplies. pp. 4-9 4-10. CRS-18 In late 2003, EPA entered into an agreement with three companies that provide most hydraulic fracturing services.8 Under this voluntary agreement, the firms agree to remove diesel fuel from CBM fluids injected directly into drinking water sources, if cost-effective alternatives are available. In 2004, EPA issued a final report that concluded that the injection of hydraulic fracturing fluids into CBM wells poses little or no threat to underground sources of drinking water and requires no further study; however, EPA noted that very little documented research has been done on the environmental impacts of injecting fracturing fluids.9 The report has been criticized by some, and the EPA Inspector General has been asked to review a whistle-blower’s assertions that EPA’s findings are scientifically unfounded.10 (For more information, see CRS Report RL32262, Selected Legal and Policy Issues Related to Coalbed Methane Development, by Aaron M. Flynn.) Section 328: Oil and Gas Exploration and Production Defined. This section would give a permanent exemption from Clean Water Act (CWA) stormwater runoff rules for the construction of exploration and production facilities by oil and gas companies and the roads that service those sites. Currently under the CWA, the operation of facilities involved in oil and gas exploration, production, processing, transmission, or treatment generally is exempt from stormwater runoff regulations, but the construction of these facilities is not. The amendment would modify the act to specifically include construction activities in the types of oil and gas facilities that are covered by the law’s statutory exemption from stormwater rules. The issue arises from stormwater permitting rules for small construction sites and municipal separate storm sewer systems that were issued by EPA in 1999 and became effective March 10, 2003. Those rules, known as Phase II of the CWA stormwater program, require most small construction sites disturbing one to five acres and municipal separate storm sewer systems serving populations of up to 100,000 people to have a CWA discharge permit. The permits require pollution-prevention plans describing practices for curbing sediment and other pollutants from being washed by stormwater runoff into local water bodies. Phase I of the stormwater program required construction sites larger than five acres (including oil and gas facilities) and larger municipal separate storm sewer systems to obtain discharge permits beginning in 1991. As the March 2003 compliance deadline approached, EPA authorized a two-year extension of the Phase II rules for small oil and gas construction sites to allow the agency to assess the economic impact of the rule on that industry. In March 8 Memorandum of Agreement Between the United States Environmental Protection Agency and BJ Services Company, Halliburton Energy Services, Inc., and Schlumberger Technology Corporation, December 12, 2003. 9 EPA, Evaluation of Impacts to Underground Sources of Drinking Water by Hydraulic Fracturing of Coalbed Methane Reservoirs, 2004. p. 4-1. 10 Letter to Senators Wayne Allard and Ben Nighthorse Campbell and Representative Diana DeGette from Weston Wilson, U.S. Environmental Protection Agency, October 8, 2004. CRS-19 2005 EPA extended the exemption until June 2006 and said it would propose a specific rule for small oil and gas construction sites by September 11, 2005. EPA had initially assumed that most oil and gas facilities would be smaller than one acre in size and thus excluded from the Phase II rules, but recent Department of Energy data indicate that several thousand new sites per year would be of sizes subject to the rule. The provision in H.R. 6 is identical to one in H.R. 6/S. 2095 in the 108th Congress, making EPA’s delay permanent and making it applicable to construction activities at all oil and gas development and production sites, regardless of size, including those covered by Phase I rules. Industry has argued that the stormwater rule creates costly permitting requirements, even though the short construction period for drilling sites carries little potential for stormwater runoff pollution. Supporters say the amendment is intended to clarify existing CWA language. Opponents argue that the provision does not belong in the energy legislation, and that there is no evidence that construction at oil and gas sites causes less pollution than other construction activities, which are regulated under EPA’s stormwater program. Section 329: Outer Continental Shelf Provisions. For applications to build deepwater ports, the Secretary of Transportation could use environmental impact statements or other studies prepared by other federal agencies instead of conducting separate studies. Information from state and local governments and private-sector sources could also be used. Section 330: Appeals Relating to Pipeline Construction or Offshore Mineral Development Projects. Appeals of decisions under the Coastal Zone Management Act on natural gas pipelines and offshore energy projects would be based exclusively on the record compiled by FERC or the relevant permitting agency. It would be the sense of Congress that appeals relating to natural gas pipeline construction would be coordinated within FERC’s established timeframes under sections 3 and 7 of the Natural Gas Act (15 U.S.C. 717 b 717 (f). Sections 332 — 333: Natural Gas Market Reform. These sections would address natural gas price reporting issues in the wake of the Enron scandal. During extremely volatile market episodes in 2000-2001 — when gas prices briefly soared to unprecedented levels — it was alleged that market participants reported false trading information to price-reporting services. Beyond creating higher prices for the market participants involved, these price-reporting schemes arguably resulted in higher transactions prices for unrelated gas deals whose prices were derived from published price indices artificially escalated by the allegedly false reports. Section 332, entitled “Natural Gas Market Reform,” would modify the Commodity Exchange Act (CEA, 7 U.S.C. 13), banning “knowingly false or knowingly misleading or knowingly inaccurate reports.” It also would increase the penalties for false reporting. Section 333, entitled “Natural Gas Market Transparency,” would direct FERC to issue rules calling for the timely reporting of natural gas prices and availability and to evaluate the data for accuracy. The language specifies that FERC not impinge on the role of commercial publishers of natural gas prices. CRS-20 Current Law. The Commodity Futures Trading Commission regulates public trading in gas under a variety of securities laws, including the CEA. FERC also has existing authority to prevent market manipulation and issued Order 644 on November 13, 2003, to prevent market abuse, set “rules of the road,” and provide a more stable marketplace for both electricity and natural gas. It establishes rules relating to market manipulation, data reporting, and record retention. It also makes sellers subject to disgorgement of unjust profits and revocation of FERC authorities to operate under market-based rules (i.e. without direct regulatory supervision) and to do business. Section 334: Oil, Gas, and Mineral Industry Workers. Within a year after enactment, the secretaries of Energy, Labor, and the Interior must submit a report to Congress with recommendations on meeting future labor requirements for the domestic oil, gas, and mining industries. This section was not in the H.R. 6 conference report in the 108th Congress. Subtitle C — Access to Federal Land Sections 344 and 346: Leasing and Permitting Processes. These sections would address concerns over delays in the permitting process for oil and gas development after leases are granted. Some lease stipulations are considered by the Administration to be impediments to domestic oil and gas development. However, concerns have also been raised that faster permitting could bypass important environmental protections. Current Law. The federal oil and gas leasing program is governed under the Mineral Leasing Act of 1920, as amended (30 U.S.C. 181 et. seq.). Bureau of Land Management (BLM) procedures for an application for a permit to drill (APD) are contained in 43 CFR 3162.3-1. The APD is posted for 30 days. Within 5 working days after the 30-day period, the BLM consults with surface-managing agencies whose consent is also required, then notifies the applicant of the results. The BLM is also required to process the application within the 35-day period. The Bush Administration has taken some action on this issue, including processing and conducting environmental analyses on multiple permit applications with similar characteristics, implementing geographic area development planning for oil and gas fields or areas within a field, and allowing for block surveys of cultural resources. H.R. 6. The Secretaries of the Interior and Agriculture would be required to sign a memorandum of understanding (MOU) on the “timely processing” of oil and gas lease applications, surface use plans and drilling applications, the elimination of duplication, and ensuring consistency in applying lease stipulations (Sec. 344). Compliance with Executive Order No. 13211 (42 U.S.C. 12301 note), requiring energy impact studies, would be required before taking action on regulations having an effect on domestic energy supply (Sec. 346). Section 355: Encouraging Prohibition of Drilling in the Great Lakes. Congress would urge that no federal or state permits be issued for oil and gas drilling in or under the Great Lakes. CRS-21 Section 358: Federal Coalbed Methane Regulation. States on the list of “affected states” under section 1339(b) of the Energy Policy Act of 1992 (42 U.S.C. 13368(b)) would be removed if they took specified actions within three years after enactment of H.R. 6 or had previously taken action under section 1339(b). The list of “affected states” established under the Energy Policy Act of 1992 (42 U.S.C. 13368 (b)) includes: West Virginia, Pennsylvania, Kentucky, Ohio, Tennessee, Indiana, and Illinois. These states are on the list as a result of coalbed methane (CBM) ownership disputes, impediments to development, lack of a regulatory framework to encourage CBM development in the state, and no current extensive development of CBM. A state may be removed from the list through a petitioning process initiated by the governor of that state. Subtitle D — Refining Revitalization Sections 371- 379: Refining Revitalization. This subtitle is designated as the “United States Refinery Revitalization Act of 2005.” Based on the finding that fuel demand exceeds the production capacity of domestic refineries, it is in the national interest to increase capacity to refine fuels within the United States. The findings in Sec. 372 note that no new refinery has been built in the country since 1976, and there has been a reduction in the number of operating facilities. It also notes that gasoline demand is expected to increase 45% between 2005 and 2025. Closure of refineries since 1981 has resulted in the shuttering of nearly 500,000 barrels per day of capacity. While the number of operating facilities has fallen from 324 to 149, the total amount of capacity has risen, the result of expansion of existing plants. But the investment climate for expansion of old plants and construction of new remains clouded, in part due to regulatory uncertainty at the federal, state, and local levels. The findings make note of the planned Yuma, AZ, refinery, which just received its federal air quality permit after five years under the current regulatory process. The Act’s purpose, as stated in Sec. 373, is to provide an accelerated review and approval process for idled refineries, and to lend legal and technical support to states needing help to meet such permit demands. Refinery Revitalization Zones are designated in Sec. 374, and the Secretary of Energy is directed to identify areas (within 90 days after enactment) that have experienced mass layoffs in manufacturing, contain an idle refinery, and have an unemployment rate that exceeds the national average by 10%. Sec. 375 calls for a memorandum of understanding between the Secretary of Energy and the EPA Administrator that designates appropriate agency officials and staff to implement the purposes of the Act and administer any regulations issued thereunder. State Governors and Indian Tribe representatives may enter into this MOU. Once a qualifying state enters into the MOU, Sec. 376 calls on the Secretary of Energy to delegate agency staff to provide assistance to the state. The EPA Administrator is similarly charged, and specifically directed to provide expertise regarding the laws the agency administers as they relate to refineries. CRS-22 DOE is designated lead agency in Sec. 377. Upon written request of an applicant, the Department will coordinate all applicable authorizations and environmental reviews, including those at the state and local level. It would be required to set a prompt and binding schedule for federal reviews and authorizations, such that the whole federal process would be completed within six months. The Department would maintain a complete consolidated record of the proceedings, and act as the arbiter in the case of appeals. Decisions on appeals would be required within 60 days. The Secretary would establish a 60-day pre-application process to help establish likelihood of approval and identify potential issues. In its lead agency role, the Department would coordinate all federal actions for NEPA compliance, as well as consolidation of the impact statement into one document covering all environmental impacts. Sec. 378 calls for the compliance with all applicable laws and regulations. Sec. 379 contains definitions for a number of significant items, including: ! Federal authorizations means those required under the Clean Air Act, the Federal Water Pollution Control Act, the Safe Drinking Water Act, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, the Solid Waste Disposal Act, the National Historic Preservation Act, and the National Environmental Policy Act of 1969. ! An idle refinery is real property used as a refinery since December 31, 1979, and not operational before April 1, 2005. ! A refinery means any facility designed and operated to store or ship oil, as well as to operate as a refinery or a refinery component. This includes places where fuel blending took place. ! A qualifying state is a state or Indian tribe which has entered into a MOU with the Secretary of Energy, and has a refining infrastructure coordination office. Title IV — Coal Subtitle A — Clean Coal Power Initiative Sections 401- 404: Clean Coal Power Initiative. The Clean Coal Power Initiative (CCPI) is in its third year of funding under a 10-year, $2 billion program outlined by the Bush Administration. According to DOE, the program supports costshared projects with the private sector to demonstrate new technologies that could boost the efficiency and reduce emissions from coal-fired power plants. CRS-23 Current Law. CCPI does not currently have a specific authorization, although it has been funded through FY2005 in the annual Interior and Related Agencies Appropriations bill. The program supersedes the Clean Coal Technology Program, which has completed most of its projects and has been subject to rescissions and deferrals since the mid-1990s. H.R. 6. Funding for CCPI would be authorized for $200 million for each year from FY2006-FY2014 (Sec. 401). The technical criteria would be established for coal-based gasification and other projects. The federal share of financing for each clean coal project would not exceed 50% (Sec. 402). A report on the projects’ status and technical milestones would be submitted after the first year and every two years by the Secretary of Energy to various congressional committees (Sec. 403). The program would include grants to universities to establish Centers of Excellence for energy systems of the future (Sec. 404). Policy Context. A key ingredient of President Bush’s May 2001 National Energy Policy is to bolster U.S. energy supply. One of its goals is to use coal more efficiently, as coal is an abundant national resource. The Administration contends that new technologies could cost-effectively reduce emissions from coal-fired power plants and overcome barriers to expanded coal use. Subtitle B — Clean Power Projects Sections 411- 416: Clean Power Projects. The Secretary of Energy would be authorized to provide a $125 million loan to an experimental clean coal power plant in Healy, Alaska (Sec. 411). Loan guarantees would be authorized for a power plant of at least 400MW capacity using integrated combined-cycle (IGCC) technology in a deregulated market and receiving no ratepayer subsidy (Sec. 412). Loan guarantees would be available for at least five petro-coke gasification polygeneration projects, involving co-production of electricity and fuels (Sec. 414). The Secretary of Energy would be directed to use $5 million of appropriated funds to begin a project managed by the DOE Chicago Operations Office to demonstrate high-energy electron scrubbing technology for high-sulfur coal emissions (Sec. 416). Subtitle D — Coal and Related Programs Section 441: Clean Air Coal Program. This section would amend the Energy Policy Act of 1992 with the addition of a clean air coal program to promote increased use of coal, acceptance of new clean coal technologies, and advance deployment of pollution control equipment to meet the Clean Air Act (42 U.S.C. 7402 et seq.). A total of $500 million over FY2006-FY2010 would be authorized for pollution control projects to control mercury, nitrogen dioxide, sulfur dioxide emissions, particulate matter, or more than one pollutant; and allow use of the waste byproducts. Additional authorizations totaling $2.5 billion over FY2007-FY2013 would be provided for projects using coal-based electrical generation equipment and processes, and associated environmental control equipment. CRS-24 Project selection criteria would be based on significantly improving air quality, replacing less efficient units, and improving thermal efficiency. Up to 25% of projects would be cogeneration or other gasification projects. At least 25% of the projects would be solely for electrical generation, with priority for those generating less than 600 MW. Federal loans or loan guarantees would not exceed 30% of the total funds obligated during any fiscal year. The federal share of projects funded would not exceed 50%. No technology funded by the program, or level of emissions reduction achieved by funded projects, would be considered adequately demonstrated for purposes of Sections 111, 169, or 171 of the Clean Air Act. Title V — Indian Energy Section 501: Short Title. This title would be cited as the “Indian Tribal Energy Development and Self-Determination Act of 2005.” Section 502: Office of Indian Energy Policy and Programs. Title II of the Department of Energy Organization Act (42 U.S.C. 7131 et. seq.) would be amended to create the Office of Indian Energy Policy and Programs at the Department of Energy. Section 503: Indian Energy. Title 26 the Energy Policy Act of 1992 (25 U.S.C. 3501) would be replaced by this section, which outlines procedures whereby Indian tribes would be able to develop and manage the energy resources located on, and rights-of-way through, tribal land. Within a year of enactment of the bill, the Department of the Interior (DOI) would issue regulations on the requirements for approval of tribal energy resource agreements. Under their own tribal energy resource agreements as approved by DOI, Indian tribes would be able to enter into leases or business agreements for energy development and grant rights-of-way over tribal land for pipelines or electric lines. Assistance for tribal energy development would be provided through DOI by grants and low-interest loans and through DOE by grants and loan guarantees. Federal agencies could give preference to Indian energy when purchasing energy products and byproducts. DOI would be required to undertake a review and make recommendations regarding tribal opportunities under the Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et. seq.). The Bonneville Power Administration and Western Area Power Administration would be authorized to assist in developing distribution systems that provide power to Indian tribes using the federal transmission system. Section 504: Consultation with Indian Tribes. The Secretaries of Energy and of the Interior would be required to consult with Indian tribes in carrying out this title. CRS-25 Section 505. Four Corners Transmission Line Project. The Dine Power Authority, an enterprise of the Navajo nation, would be eligible to receive grants and other assistance to develop a transmission line from the Four Corners Area to southern Nevada, including related generation facilities. Title VI — Nuclear Matters Subtitle A — Price-Anderson Act Amendments Sections 601- 612: Price-Anderson Nuclear Liability Coverage. The Price-Anderson Act,11 which addresses liability for damages to the general public from nuclear incidents, would be extended through 2025. The Price-Anderson liability system was up for reauthorization on August 1, 2002, and was extended for commercial nuclear reactors through December 31, 2003, by the FY2003 consolidated appropriations resolution (P.L. 108-7). Even without further extension, existing reactors will continue to operate under the current Price-Anderson liability system, but any new reactors would not be covered. Price-Anderson coverage for DOE nuclear contractors was extended through December 31, 2004, by the National Defense Authorization Act for FY2003 (P.L. 107-314). A further two-year extension for DOE contractors was approved by Congress on October 9, 2004, as part of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-375). Current Law. Under Price-Anderson, the owners of commercial reactors must assume all liability for nuclear damages awarded to the public by the court system, and they must waive most of their legal defenses following a severe radioactive release (“extraordinary nuclear occurrence”). To pay any such damages, each licensed reactor must carry financial protection in the amount of the maximum liability insurance available, which was increased by the insurance industry from $200 million to $300 million on January 1, 2003. Any damages exceeding that amount are to be assessed equally against all covered commercial reactors, up to $95.8 million per reactor (most recently adjusted for inflation on August 20, 2003). Those assessments — called “retrospective premiums” — would be paid at an annual rate of no more than $10 million per reactor, to limit the potential financial burden on reactor owners following a major accident. According to the Nuclear Regulatory Commission (NRC), 103 commercial reactors are currently covered by the PriceAnderson retrospective premium requirement. Funding for public compensation following a major nuclear incident, therefore, would include the $300 million in insurance coverage carried by the reactor that suffered the incident, plus the $95.8 million in retrospective premiums from each of the 103 currently covered reactors, totaling $10.2 billion. On top of those payments, a 5% surcharge may also be imposed, raising the total per-reactor retrospective premium to $100.6 million and the total potential compensation for each incident to about $10.7 billion. Under Price-Anderson, the nuclear industry’s liability for an 11 Primarily Sec. 170 of the Atomic Energy Act of 1954, 42 U.S.C. 2210. CRS-26 incident is capped at that amount, which varies depending on the number of covered reactors, the amount of available insurance, and an inflation adjustment that is made every five years. Payment of any damages above that liability limit would require congressional approval under special procedures in the act. The Price-Anderson Act also covers contractors who operate hazardous DOE nuclear facilities. The liability limit for DOE contractors is the same as for commercial reactors, excluding the 5% surcharge, except when the limit for commercial reactors drops because of a decline in the number of covered reactors. Because two closed reactors had been covered until recently (for a total of 105), the liability limit for commercial reactors, minus the surcharge, had been $10.4 billion, which remains the liability limit for DOE contractors. Price-Anderson authorizes DOE to indemnify its contractors for the entire amount, so any damage payments for nuclear incidents at DOE facilities would ultimately come from the U.S. Treasury. However, the law also allows DOE to fine its contractors for safety violations, and contractor employees and directors can face criminal penalties for “knowingly and willfully” violating nuclear safety rules. However, Section 234A of the Atomic Energy Act specifically exempts seven non-profit DOE contractors and their subcontractors. Under the same section, DOE automatically remits any civil penalties imposed on non-profit educational institutions serving as DOE contractors. House Bill. Price-Anderson liability coverage for commercial reactors and for DOE contractors would be extended through December 31, 2025 (Sec. 602). The total retrospective premium for each reactor would be set at [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%3ARL32936. Public record. Not legal advice.