Omnibus Energy Efficiency and Renewable Energy Legislation: A Side-by-Side Comparison of Major Provisions in House-Passed H.R. 3221 with Senate-Passed H.R. 6

Congressional research reportDec 5, 2007

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Omnibus Energy Efficiency and Renewable

Energy Legislation: A Side-by-Side

Comparison of Major Provisions in HousePassed H.R. 3221 with Senate-Passed H.R. 6

(name redacted)

Specialist in Energy Policy

December 5, 2007

Congressional Research Service

7-....

www.crs.gov

RL34135

CRS Report for Congress

Prepared for Members and Committees of Congress

Omnibus Energy Efficiency and Renewable Energy Legislation

Summary

In the first session of the 110th Congress, the House and the Senate passed two markedly different

versions of omnibus energy efficiency and renewable energy legislation. This report compares

major provisions in House-passed H.R. 3221 and Senate-passed H.R. 6. Key legislative

challenges remain. First, there are significant differences between the two bills. Second, because

the House and Senate have passed different measures, further action will be required in at least

one chamber before a conference committee could be arranged. Third, concerns about certain oil

and natural gas provisions, and the lack of measures to support increased oil and gas production,

have led the Administration to threaten to veto each bill. Highlights of major provisions include:

•

Renewable Fuels Standard (RFS). The Senate bill would set a modified standard

that starts at 8.5 billion gallons in 2008 and rises to 36 billion gallons by 2022.

The House bill has no RFS provision.

•

Corporate Average Fuel Economy (CAFE). The Senate bill would set a target of

35 miles per gallon for the combined fleet of cars and light trucks by model year

2020. The House bill has no CAFE provision.

•

Renewable Energy Portfolio Standard (RPS). The House bill would set a

minimum standard that would start at 2.75% in 2010 and rise steadily to a peak

of 15% in 2020. The Senate bill has no RPS provision.

•

Offshore Oil and Gas Royalties. The House bill would establish royalties, or

alternative payments, for certain federal leases established in 1998 and 1999. The

Senate bill has no provision.

•

Repeal of Oil and Gas Tax Incentives. The House bill would obtain tax revenue

offsets by reducing subsidies for oil and natural gas production. The Senate bill

has no provision.

•

Renewable Energy Electricity Production Tax Credit (PTC). The House bill

would extend the PTC for four years, and expand it to include some additional

resources. The Senate bill has no provision.

•

Other Tax Incentives. The House bill would extend several investment tax credits

covering solar energy and energy efficiency in residential and commercial

sectors. The Senate bill has no provision.

•

Energy Efficiency Equipment Standards. Key differences involve standards for

residential refrigerators, freezers, refrigerator-freezers, metal halide lamps, and

commercial walk-in coolers and freezers.

•

Loan Guarantees. The House bill would give new loan authority to a wider

variety of projects. The Senate bill would prevent appropriations acts from

limiting the use of non-appropriated funds.

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Contents

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

Senate Action on H.R. 6 ..............................................................................................................2

House Action on H.R. 3221.........................................................................................................2

Challenges and Next Steps ..........................................................................................................2

Informal House-Senate Negotiations ...........................................................................................3

Comparing the House and Senate Bills........................................................................................4

Tables

Table 1. List of Provisions...........................................................................................................4

Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6................................6

Appendixes

Appendix A. House-Passed Version of H.R. 3221, Division A: “New Direction for

Energy Independence, National Security, and Consumer Protection Act”................................ 20

Appendix B. Senate-Passed Version of H.R. 6: “Renewable Fuels, Consumer Protection,

and Energy Efficiency Act” .................................................................................................... 35

Contacts

Author Contact Information ...................................................................................................... 44

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Introduction

In the first session of the 110th Congress, the House and the Senate passed two markedly different

versions of omnibus energy efficiency and renewable energy legislation.

The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy

Efficiency Act of 2007, passed the Senate on June 21, 2007. The key provisions of the Senatepassed H.R. 6 are appliance efficiency standards, an increase of the renewable fuel standard

(RFS) to 36 billion gallons by 2022, and an increase of the combined corporate average fuel

economy (CAFE) standards to 35 miles per gallon (mpg) by 2020. Tax provisions and a

renewable energy portfolio standard (RPS) were not included.

The House passed H.R. 3221 on August 4, 2007. H.R. 3221 has two divisions. Division A

contains the New Direction for Energy Independence, National Security, and Consumer

Protection Act, which has nine titles An adopted floor amendment (H.Amdt. 748) added a 15%

renewable portfolio standard (RPS). Division B, the Renewable Energy and Energy Conservation

Tax Act of 2007, contains the House-approved version of H.R. 2776. It adds four titles to H.R.

3221 that include a four-year extension of the renewable electricity production tax credit and

other efficiency and renewables incentives.

This report compares the major provisions of the House version of H.R. 3221, and the Senate

version of H.R. 6. (For more details on the provisions in these two bills, see the appendices to this

report. For more details on the legislation that led to the omnibus bills, see CRS Report RL33831,

Energy Efficiency and Renewable Energy Legislation in the 110th Congress. For more details on

the tax provisions, see CRS Report RL33578, Energy Tax Policy: History and Current Issues.)

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

report:

•

(name redacted), transmission and electric utilities, 7-....

•

(name redacted), fuel economy standards, 7-....

•

(name redacted), wildlife and habitats, 7-....

•

Susan Fletcher, international climate cooperation, 7-....

•

(name redacted), carbon storage, 7-....

•

(name redacted), loan guarantees, 7-....

•

(name redacted), oil and natural gas royalties, 7-....

•

(name redacted), marine energy, 7-....

•

(name redacted), energy taxes, 7-....

•

(name redacted), energy prices, 7-....

•

(name redacted), agriculture-based energy, 7-....

•

Brent Yacobucci, biofuels, 7-....

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Senate Action on H.R. 6

The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy

Efficiency Act of 2007, was derived primarily from S. 1419, which, in turn, was composed from

four major bills: the Energy Savings Act (S. 1321), the Public Buildings Cost Reduction Act (S.

992), the Ten-in-Ten Fuel Economy Act (S. 357), and the Energy Diplomacy and Security Act (S.

193). A summary of the Senate-passed version of H.R. 6 is presented in CRS Report RL33831,

Energy Efficiency and Renewable Energy Legislation in the 110th Congress. That report also

contains descriptions of all the bills that composed the Senate version of H.R. 6.

An RPS amendment (S.Amdt. 1537) was introduced during Senate floor action on the proposed

substitute (S.Amdt. 1502) to H.R. 6. The RPS amendment proposed setting a target of 15% by

2020. No action was taken on S.Amdt. 1537 before a successful cloture vote on the substitute.

That cloture vote caused S.Amdt. 1537 to be ruled non-germane, and it fell from consideration.

A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the

proposed substitute to H.R. 6. The proposed tax package amendment included oil and natural gas

revenue offset provisions, as well as incentives for renewable energy and energy efficiency. The

proposed revenue offsets were similar to, but more extensive than, the offsets proposed in Title

XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture

motion to limit debate. (For more details, see CRS Report RL33578, Energy Tax Policy: History

and Current Issues.)

House Action on H.R. 3221

H.R. 3221 has two divisions. Division A contains the New Direction for Energy Independence,

National Security, and Consumer Protection Act, which has nine titles that represent the

integration of H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R. 2635,

H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2847, and a draft bill by the Committee on Energy and

Commerce. Division B, the Renewable Energy and Energy Conservation Tax Act of 2007,

contains the House-approved version of H.R. 2776, and adds four titles to H.R. 3221. A summary

of the bill is presented in CRS Report RL33831, Energy Efficiency and Renewable Energy

Legislation in the 110th Congress. That report also contains descriptions of all the bills that

composed the House-passed version of H.R. 3221.

Challenges and Next Steps

One challenge involves key differences between the provisions of the two bills. There are several

provisions where the two bills are very similar. One example is energy efficiency standards,

where the House and Senate provisions have more similarities than differences. However,

especially among the more controversial provisions, many either have major differences or the

provision appears only in one bill. One key challenge will be to resolve such differences.

A second challenge involves additional action that will be required to get a bill to conference

committee. Because the House and Senate have passed different measures, constitutionallyrequired congressional procedures prevent the two bills (H.R. 3221 and H.R. 6) from going to

conference in their current form. Further action will be needed on at least one of the two bills in at

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

least one of the two chambers. For example, one option could be that the Senate takes up H.R.

3221, amends it however it wishes, and then pass the bill as the Senate version of H.R. 3221.

Then, a conference could be held to resolve any remaining differences between the two versions

of H.R. 3221.1

A third challenge involves opposition to the bills expressed by the Administration. In a June 12,

2007, Statement of Administration Policy on H.R. 6, the Administration expressed several points

of opposition to the Senate bill.2 Its primary concerns involved issues related to oil and natural

gas. The Administration stated that the bill “does nothing to increase domestic supplies of oil and

natural gas.” Moreover, it threatened to veto the bill if it retained a price gouging provision,

which it feels would lead to problematic gasoline price controls. Another veto threat was focused

on the proposal to subject foreign oil cartels to the jurisdiction of U.S. courts. Additional concerns

were identified. One concern focused on the explicit 35 mpg fuel economy target in the CAFE

provision and the proposal to set standards for medium- and heavy-duty trucks. For the RFS

provision, the Administration strongly urged expansion to include fossil-based alternative fuels.

Regarding loan guarantees, the Administration stated opposition to loosening of controls over

program size and “special” treatment that would allow guarantees for biofuels projects to be

increased to from 80% to cover up to 100% of project costs.

In an August 3, 2007, Statement of Administration Policy on H.R. 2776 and H.R. 3221, the

Administration expressed several points of opposition to the House bill. 3 Its primary concerns

were focused on oil and natural gas. It stated that because the two bills “would lead to less

domestic oil and gas production, higher energy costs, and higher taxes, the President’s senior

advisors would recommend that he veto these bills.” Other concerns included the proposed repeal

of the manufacturing tax deduction for the oil and gas industry, the application of royalty

requirements for certain offshore oil and gas leases issued in 1998 and 1999, increased

authorization for clean renewable energy bonds, and expansion of the Davis-Bacon prevailing

wage requirements.

Informal House-Senate Negotiations

After the House completed action on H.R. 3221, informal bipartisan negotiations over the

omnibus energy bills began between the House and Senate. Key issues seem to include the RPS

provision (Title IX, Subtitle H) in the H.R. 3221, differences over proposals for increasing the

renewable fuels standard (RFS), and a proposal to offset costs by repealing certain oil and natural

gas subsidies. In November 2007, EIA issued a report on the impacts of the RPS and oil and gas

provisions in H.R. 3221.4 On December 1, 2007, the Ranking Member of the Senate Committee

on Energy and Natural Resources stated that the House Leadership’s intent to include an RPS led

For more information about procedural requirements to bring a bill to conference, see CRS Report 96-708,

Conference Committee and Related Procedures: An Introduction, by (name redacted).

Executive Office of the President. Office of Management and Budget. Statement of Administration Policy on H.R. 6.

June 13, 2007. 3 p.

Executive Office of the President. Office of Management and Budget. Statement of Administration Policy on H.R.

2776 and H.R. 3221. August 3, 2007. 2 p.

EIA. Oil and Natural Gas Market Supply and Renewable Portfolio Standard Impacts of Selected Provisions of H.R.

3221. November 2007. 11 p. http://www.eia.doe.gov/oiaf/servicerpt/bmy/pdf/bmy.pdf.

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

him to cease negotiations.5 Further, on December 3, 2007, the White House announced that it

may veto the negotiated bill, if it includes an RPS, oil tax increases, and certain other provisions.6

On December 4, 2007, United Press International reported that, in a press conference, DOE

Secretary Bodman warned against the inclusion of “a narrow, one-size-fits-all renewable portfolio

standard,” and said “taxes should not be raised or tax breaks reversed for the oil and gas sector.”7

Comparing the House and Senate Bills

This report compares the major provisions of the House-passed version of H.R. 3221 and the

Senate-passed version of H.R. 6. Table 1 shows a list of the major provisions that are reviewed in

this report. Some provisions are contained wholly under one title or subtitle. For example, the

RPS provision in the House bill is contained wholly under Subtitle H of Title IX. However, some

provisions are scattered throughout several titles or subtitles. For example, in the House bill, the

most extensive provision for loan guarantees is found in Title IX, Subtitle C, but additional

provisions for loan guarantees appear under Titles IV (Subtitle E), V, IX (Subtitle A) and IX

(Subtitle E). Similarly, Senate provisions for loan guarantees appear in both Title I (Subtitle B),

and Title II (Subtitle C).

Table 1. List of Provisions

Provision

Category

Location

Rail, Sea, and Air Transportation

authorization

page 13

International Energy Cooperation

treaties

page 14

International Climate Cooperation

treaties

page 15

Carbon Storage

authorization

page 15

Carbon Neutral Government

authorization

page 16

Energy Efficiency - Buildings

authorization

page 16

Energy Efficiency - State and Local

authorization

page 16

Energy Efficiency - Small Business

authorization

page 17

Green Jobs

authorization

page 17

Transmission/Smart Grid

authorization

page 17

Wind Impacts on Wildlife

regulation

page 17

Renewable Energy R&D

authorization

page 18

Hydrogen Award

authorization

page 18

Price Gouging

regulation

page 18

Agriculture Energy

authorization

page 18

ARPA-E

authorization

page 19

Congressional Research Service

Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Renewable Fuel Standard (RFS)

No provision.

CRS-6

Title I, Subtitle A. This Subtitle would extend and

increase the renewable fuel standard (RFS) set by P.L.

109-58. The RFS requires minimum annual levels of

renewable fuel in gasoline. The current standard is 4.7

billion gallons for 2007. The modified standard would

start at 8.5 billion gallons in 2008 and rise to 36 billion

gallons in 2022. Starting in 2016, an increasing portion of

the requirement would have to be met with advanced

biofuels, defined as cellulosic ethanol and other biofuels

derived from feedstocks other than corn starch.

Renewable fuels produced from new biorefineries would

be required to achieve at least a 20% reduction in life

cycle greenhouse gas emissions relative to life cycle

emissions from gasoline. A voluntary labeling program

would be established for renewable fuels, based on life

cycle greenhouse gas emissions. Fuel produced from

biorefineries that displace more than 90% of the fossil

fuels used in a biofuel production facility would qualify

for additional credits under the RFS. (For more details,

see CRS Report RL33928, Ethanol and Biofuels:

Agriculture, Infrastructure, and Market Constraints Related to

Expanded Production.)

No House provision.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Corporate Average Fuel Economy (CAFE)

No provision.

Title V would establish a single CAFE standard for a

combined passenger car and light truck fleet, beginning

in model year (MY) 2011. The existing standard is 27.5

miles per gallon (mpg) for passenger cars and 22.2 mpg

for light trucks in MY2007. H.R. 6 would set a CAFE

target of 35 mpg for the combined fleet by MY2020. The

CAFE standards during each of the interim years

(MY2011-MY2019) would be required to be 4% higher

than the previous model year, or at “maximum feasible”

levels. Within 18 months after enactment, the

Department of Transportation (DOT) would be

required to initiate analysis for the purpose of

establishing a commercial medium- and heavy-duty onhighway vehicle fuel efficiency improvement program.

Other provisions would require that a percentage of

automakers’ new vehicles be alternative fuel-capable

starting in 2012, and that CAFE fines be used to develop

alternative fuel infrastructure. (For additional

information, see CRS Report RL33982, Corporate

Average Fuel Economy (CAFE): A Comparison of Selected

Legislation in the 110th Congress, and CRS Report

RL33413, Automobile and Light Truck Fuel Economy: The

CAFE Standards.)

No House provision.

In Senate floor action on its proposed substitute

(S.Amdt. 1502) to H.R. 6, S.Amdt. 1537 to the substitute

proposed adding an RPS with a target of reaching 15%

by 2020. After a successful cloture motion on S.Amdt.

1502, S.Amdt. 1537 was ruled non-germane.

No Senate provision.

Federal Renewable Energy Portfolio Standard

(RPS)

Title IX, Subtitle H, would establish an RPS administered

by DOE for retail suppliers (electric utilities). For each

retail supplier that sells more than one billion kilowatthours (kwh) per year, the RPS would set a minimum

electricity production requirement from renewable

resources. The standard would start at 2.75% in 2010 and

then rise annually until reaching a peak of 15% in 2020.

Electricity savings from energy efficiency measures would

be allowed to compose a maximum of 25% of the

standard in any given year. The energy efficiency share

would rise to a peak of 4% in 2020, of the 15% total. (For

more details, see CRS Report RL34116, Renewable Energy

Portfolio Standard (RPS): Background and Debate Over a

National Requirement.)

CRS-7

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Royalties Under Offshore Oil and Gas Leases

Title VII, Subtitle E, would require that the Secretary of

the Interior accept a lessee’s request to modify certain

leases established in 1998 and 1999 without price

thresholds (“covered leases”) to set price thresholds.

Lessees holding “covered leases” would not be eligible for

new oil and gas leases in the Gulf of Mexico unless the

covered leases are modified to include price thresholds

or the lessee would agree to pay a newly established

“conservation of resources fee.” The Subtitle would

repeal royalty relief provisions established by the Energy

Policy Act of 2005 (P.L. 109-58, §344 and §345). This

Subtitle is nearly identical to Title II of the House-passed

version of H.R. 6. The Congressional Budget Office

estimates that the proposed changes to the royalty

system for oil and natural gas could generate $6.3 billion

over 10 years for the U.S. Treasury.

No provision.

No Senate provision.

No provisions.

No Senate provision.

However, in Senate floor action on its proposed

substitute (S.Amdt. 1502) to H.R. 6, S.Amdt. 1704 to the

substitute proposed tax revenue offsets that were

similar to, but more extensive than, the offsets

proposed in Title XIII, Subtitle A of H.R. 3221.

However, S.Amdt. 1704 failed by a vote of 57-36 on a

cloture motion to limit debate. (For more details, see

CRS Report RL33578, Energy Tax Policy: History and

Current Issues, by (name redacted).)

S.Amdt. 1704 had more revenue offsets than Title XIII,

Subtitle A of H.R. 3221. The estimated dollar value of

the revenue offset provisions in S.Amdt. 1704 was more

than double that estimated for H.R. 3221.

Repeal of Oil and Natural Gas Tax Incentives

Title XIII, Subtitle A, proposes tax revenue offsets that

would be obtained by reducing subsidies for oil and

natural gas production.

Section 13001 would repeal the IRS §199 domestic

manufacturing deduction for oil and gas companies

starting in 2008. (Note: In 2007, this deduction would

amount to about 6% of the income from domestic

production of oil, gas, or primary products.)

Under Section 13002, the geological and geophysical costs

(G&G) of a major integrated oil company would be

amortized (deducted proportionally) over a 7 year period

instead of the current 5 years. (Note: A major integrated

oil company is one with an average world production of

at least 500,000 barrels per day, with 2005 gross receipts

exceeding $1 billion, and which has at least a 15% interest

in refinery operations.)

Section 13003 would restrict oil and gas companies from

claiming foreign tax credits by changing the method used

to calculate “Foreign Oil and Gas Extraction Income.”

The Joint Committee on Taxation estimates this Title

CRS-8

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

would increase revenue to the U.S. Treasury by about

$11 billion over 10 years.

Title XIII, Subtitle B would clarify eligibility for the

renewable diesel tax credit.

No provision.

No Senate provision.

Title XIV, Subtitle A, would call for a carbon audit of the

IRS tax code and for a comprehensive study of biofuels.

No comparable provisions in Senate bill, nor in S.Amdt.

1704, which failed to be added to H.R. 6 on the Senate

floor.

No Senate provisions.

No provisions in H.R. 6.

No Senate provisions, but:

However, S.Amdt. 1704 (Part I) would have extended

the PTC for 5 years and expanded it to include ocean

thermal and hydrokinetic (wave, tide, and current)

energy. Also, it would have extended the 30% business

energy tax credit for solar and fuel cell equipment for 8

years and repealed the public utility exclusion. It would

have authorized $3.6 billion of CREBs, and raised the

cap on the tax credit for residential solar and fuel cell

equipment. A new credit would have been created for

residential wind equipment. Two incentives for electric

transmission would have been established.

S.Amdt. 1704 proposed a 1-year longer PTC extension

than the House bill.

Subtitle B would require that, for a capital grant program

to rehabilitate freight railroad tracks, all laborers and

mechanics be paid at the “prevailing wage” rate.

Tax Incentives for Renewable Energy Production

Title XI would extend the renewable electricity

production tax credit (PTC) for 4 years and expand it to

include ocean thermal and hydrokinetic (wave, tide, and

current) energy. Also, it would extend the 30% business

energy investment tax credit (ITC) for solar and fuel cell

equipment for 8 years, authorize $2 billion of clean

renewable energy bonds (CREBs), and remove the cap on

the investment tax credit for residential solar and fuel cell

equipment.

S.Amdt. 1704 (Part V) would have extended the new

energy-efficient homes credit for 3 years.

S.Amdt. 1704 proposed $1.6 billion more for CREBs,

and it would have expanded the business ITC to

utilities.

H.R. 3221 would remove the cap on the residential ITC.

S.Amdt. 1704 would have raised the cap on the

residential ITC.

S.Amdt. 1704 would have created a credit for

residential wind equipment.

S.Amdt. 1704 (Part V) would have extended the new

homes credit.

Tax Incentives for Energy Efficiency in

Transportation

Title XII, Subtitle A, would set a $4,000 credit for plug-in

hybrid vehicles, establish a 50 cent per gallon production

tax credit for cellulosic ethanol fuel, extend the biodiesel

production tax credit for two years, increase the

alternative refueling stations tax credit, create a fringe

benefit for bicycle commuters, and modify depreciation

and expensing rules to close a loophole for gas guzzlers

and make incentives available for fuel efficient vehicles.

CRS-9

No provisions.

No Senate provisions.

S.Amdt. 1704 would have created a credit for plug-in

hybrids, capped at $7,500 to $15,000, depending on

vehicle weight. The credit for alternative-fueled vehicles

would have been extended for 2 years. An exclusion

from heavy truck tax would have been established for

idling reduction units and certain truck insulation

measures.

S.Amdt. 1704 had a stronger credit for plug-in hybrids.

H.R. 3221 provides some incentives that were not in

S.Amdt. 1704.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Tax Incentives for Other Energy Efficiency

Measures

Title XII, Subtitle B, Section 12011, would create an

energy conservation tax credit bond for state and local

governments to reduce energy use in public buildings,

promote renewables in rural areas, support R&D, mass

transit facilities and vehicles, and technology

demonstrations. Total (national) bond authority would be

limited to $3.6 billion.

Section 12012 would create an energy efficiency

assistance tax credit bond for states to provide loans and

grants for home improvements and residential equipment.

Total bond authority would be limited to $2.4 billion. The

bond could support Energy Star equipment, renewable

energy equipment, and certain targeted reductions in

energy use. At least 20% of the project proceeds from

each bond issue must be applied to low-income

residential purposes.

No provisions.

No Senate provisions.

S.Amdt. 1704, Part V, would have extended the

commercial building deduction for 5 years, and extended

and expanded the home appliance credit.

H.R. 3221 would establish two new tax credit bond

provisions for state and local programs.

Also, Part V would have extended the new home credit

for 3 years and the existing home efficiency retrofit

credit for 2 years. A credit would have been created for

commercial installation of certain combined heat and

power (CHP) equipment.

S.Amdt. 1704 would have extended two home tax

credits that are not included in H.R. 3221. Also, it

would have established a new commercial CHP credit.

Part I would have expanded the 7-year depreciation

period to include energy management devices.

Also, Subtitle B would provide a 5-year extension of the

tax deduction for commercial buildings, an extension and

modification of the appliance credit, and the

establishment of a five-year depreciation period for smart

electric meters.

Energy Efficiency - Equipment Standards

Title IX, Subtitle A, Part 1, would set, by statute, new

efficiency standards for residential clothes washers,

dishwashers, dehumidifiers, refrigerators, refrigeratorfreezers, freezers, electric motors, and residential boilers.

DOE would be allowed to establish regional variations in

standards for heating and air conditioning equipment.

DOE would be required to complete a rulemaking

process for furnace fans by 2013. Federal agencies would

be directed to purchase devices that limit standby power

use. DOE would be directed to issue a final rule that sets

efficiency standards for battery chargers. Certain energy

efficiency measures for walk-in coolers and walk-in

freezers would be set by legislation. Also, several

procedural changes would be made to expedite the DOE

rulemaking process.

CRS-10

Title II, Subtitle B, would set, by statute, new standards

for residential boilers, electric motors, and some home

appliances. DOE would be directed to set standards by

rulemaking for furnace fans. Also, DOE would be

allowed to set standards for multiple components and

regional standards for heating and cooling equipment.

Further, this Subtitle would provide incentives for the

manufacture of high-efficiency consumer products.

Other provisions would expedite rulemakings, clarify

limits to federal preemption of state standards, and

require Energy Guide labels for several types of

consumer electronic products. Also, DOE would be

directed to establish a program for the use of new

technologies to improve energy efficiency in materials

manufacturing and energy-intensive industries.

Both bills would legislate identical standards for

residential clothes washers, dishwashers, dehumidifiers,

electric motors, and residential boilers. The House bill

would also legislate standards for refrigerators, freezers,

and refrigerator-freezers. The Senate bill would direct

DOE to set standards by rule for refrigerators, freezers,

and refrigerator-freezers. Both bills would direct DOE

to set standards by rule for furnace fans. The House bill

would legislate certain efficiency measures for walk-in

coolers and freezers.

Both bills would legislate identical standards for

incandescent reflector lamps. The House bill would also

legislate standards for certain metal halide lamps.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Part 2 would set a mandatory target for lighting efficiency,

set a standard for incandescent reflector lamps, and

require federal agencies to replace incandescent lights

with more efficient ones. Energy efficiency standards

would be set by legislation for metal halide lamp fixtures

designed to be operated with lamps rated between 150

watts and 500 watts.

Subtitle A would require all federal lighting to be Energy

Star rated by 2010, expanding efficiency standards for

incandescent reflector lamps, creating the “Bright

Tomorrow” lighting prizes for solid state (LED) lighting

developments, and establishing a “Sense of the Senate”

to pass mandatory energy efficiency performance targets

for lighting products.

Key Differences

Loan Guarantees for Energy Facilities

Title IX, Subtitle C, would amend EPACT05 Title XVII to

specify that loan guarantees must be large enough to

ensure financing for a project (up to 80% of project

costs), that DOE may not establish regulations limiting

guarantees to less than 100% of project debt, and that

workers on such projects must be paid prevailing wages

under the Davis-Bacon Act. In addition, appropriations

bills could not exclude any category of projects otherwise

eligible for loan guarantees under EPACT05. New loan

guarantee authority would be established for biofuel

plants (Sec. 5003), rural renewable energy systems (Sec.

5006), vessels for short sea transportation (Sec. 8401),

advanced battery manufacturing facilities (Sec. 9401), and

green building retrofits (Sec. 9052).

CRS-11

Title I (Sec. 124) would amend EPACT05 Title XVII to

specify that up to 100% of a project’s debt may be

guaranteed and that the loan guarantee program is not

subject to annual limits established by appropriations

acts when non-appropriated funds are used. Loan

guarantee authority would be extended to renewable

fuel facilities (Sec. 124) and production facilities for fuel

efficient vehicles or parts (Sec. 242).

The Senate bill specifies that annual limits in

appropriations acts would not apply to loan guarantees

using non-appropriated funds (using funds provided by

project sponsors, as authorized by EPACT05). This

provision is considered important for nuclear power

plants, which tend to be far more expensive than other

advanced energy projects. The House bill would help

nuclear power by prohibiting appropriations acts from

excluding any project categories (the House-passed

Energy and Water Development Appropriations Bill for

FY2008 (H.R. 2641) excludes nuclear plants). The

House bill establishes new loan guarantee authority for

a wider variety of projects than the Senate bill.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Title II, Subtitle E, would require federal and state fleets

to reduce oil use 30% by 2016. The renewable energy

share of federal energy purchases would increase to

15% by 2015. Federal agencies would have permanent

authority to use Energy-Saving Performance Contracts

(ESPCs). Federal buildings would be required to reduce

energy use 30% by 2015. Federal buildings would be

required to reduce fossil energy use by 50%.

Both bills would set a goal to reduce fossil fuel use in

federal vehicle fleets, but by using different approaches.

The Senate bill would also set a goal to reduce use by

state fleets.

Title IV, Subtitle A, would direct GSA to accelerate

federal agency use of efficient lights. Subtitle B would

direct GSA to install a solar photovoltaic system at DOE

headquarters.

The Senate bill would set a broader requirement for

light bulbs.

Energy Efficiency - Federal

Title VI, Subtitle B, would require federal agencies to

purchase “low carbon” vehicles and to procure energyefficient products. DOE would be directed to revise

energy performance standards for federal buildings to

reduce oil use. Covered buildings would have to reduce

the share of fossil fuel use by 55% in 2010, reducing

steadily to 100% (zero emissions) by 2030. Subtitle C

would create a telework (work from home) policy at

federal agencies. Alterative fuels could not be procured if

greenhouse gas (GHG) emissions exceed those for

conventional petroleum fuels.

Title VIII, Subtitle F, would prohibit the General Services

Administration (GSA) from purchasing incandescent lights

for Coast Guard buildings. Also, it would direct GSA to

install a solar photovoltaic system at DOE headquarters.

Title IX, Section 9042, would direct GSA to establish an

Office of Federal High-Performance Green Buildings that

would identify standards, practices, and incentives for

federal agencies. Would include agency retention of cost

savings.

Both bills set goals for reducing fossil fuel use in federal

buildings. The House bill would drive this reduction

with a DOE rulemaking.

Title IV, Subtitle C, Section 432, would establish virtually

identical provisions for federal green buildings.

Section 452 would set identical procurement

requirements.

Section 9046 would direct the Office of Federal

Procurement Policy to require that acquisition,

construction, and major renovations of buildings employ

green design. In leasing, preference would be given to

energy-efficient buildings.

Energy Efficiency - Congressional

Title VIII, Subtitle F, Part 3, would direct the Architect of

the Capitol to operate the Capitol Power Plant in an

energy-efficient manor, include energy efficiency measures

in the Capitol Complex Master Plan, and encourage the

use of E85 fuel and solar photovoltaic equipment.

No provision.

No Senate provision.

Title II, Subtitle C, would promote high-efficiency

vehicles, advanced batteries, and energy storage. DOE

would be authorized to fund an R&D program on lightweight materials. A loan guarantee program would be

The bills have similar aims, but differ in focus and means.

Both bills would establish grant programs. The House

bill would provide loan guarantees and grants to

support advanced technology work and hybrid vehicle

Energy Efficiency - Vehicle Transportation

Title VIII, Subtitle B, Part 2, provides support for federalaid highways. The federal share for congestion mitigation

and air quality (CMAQ) projects would be increased up

to 100% of project or program cost.

CRS-12

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Title IX, Subtitle E would establish a loan guarantee

program for advanced battery development, grant

programs for plug-in hybrid vehicles, incentives for

purchasing heavy duty hybrids for fleets, and credits for

various electric vehicles.

created for facilities that manufacture fuel-efficient

vehicles. Funding awards for qualified investments would

be authorized to refurbish manufacturing facilities that

produce advanced technology vehicles. A 10-year R&D

program would be authorized to support U.S.

competitiveness in global energy storage markets, and a

five-year R&D program would be authorized for electric

drive technologies. DOE would be directed to establish

a competitive grant program for state, regional, and local

government entities to demonstrate electric drive

vehicles. DOE would also be required to establish a

program to deploy technologies that would achieve

near-term oil savings in the transportation sector.

purchases. The Senate bill would rely more on R&D and

less on loan guarantees. The Senate bill has a broader

scope, including loan guarantees for constructing or

retrofitting facilities that manufacture fuel-efficient

vehicles.

Title V (§5003) would provide loan guarantees for up to

90% ($250 million in principal) of project cost for

biorefineries and biofuel production plants.

Title I (§124) would provide loan guarantees for up to

100% ($250 million in principal) of project cost for

advanced biofuel (new technology) pilot plants.

The House bill would authorize funding for grants to

support cellulosic ethanol production, but the Senate

bill would not.

Title IX (§9304) would direct DOE to study the feasibility

of constructing dedicated ethanol pipelines.

Title I (§143) would direct DOE to study the feasibility

of constructing dedicated ethanol pipelines.

Title IV (§9301) would authorize funding for DOE to

make grants for renewable fueling infrastructure.

Additional provisions (§4403, Title IX-D) would support

other aspects of infrastructure development.

Title I (§121) would authorize funding for DOE to make

grants for renewable fueling infrastructure and corridors

in 10 geographically-dispersed areas.

The Senate bill would authorize funding for grants to

states with low ethanol production rates, but the House

bill would not. The Senate bill would create a fuel

labeling requirement, and the House bill would not.

Renewable Fuel Supply and Infrastructure

Title IX (§9308) would authorize DOE funding support

for grants to diversify feedstocks and locations for

cellulosic ethanol production facilities.

Other provisions would authorize funding for R&D,

bioenergy research centers (5), and a biodiesel fuel quality

standard.

Other provisions would authorize funding for R&D,

bioenergy research centers (11), grants to states with

low ethanol production rates, biomass transportation, a

fuel labeling requirement, and a biodiesel fuel quality

standard.

Rail, Sea, and Air Transportation

Title VIII, Subtitle B, would direct DOT to establish grants

that can help rail carriers buy hybrid locomotives and

grants that can improve railroad track. Subtitle D would

create a short sea maritime transportation program.

Subtitle E would establish a grant program to reduce

airport noise, air pollution, and greenhouse gas emissions.

CRS-13

No provisions.

No Senate provisions.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

International Energy Cooperation

Title IX, Subtitle D, Part 2, would establish a grant

program and advisory board for U.S.-Israel energy

cooperation. The provisions of this Subtitle are identical

to those of H.R. 3238.

Title VII would express the sense of Congress on

international energy cooperation, emphasizing increased

use of sustainable energy sources. To support this, the

Department of State would be encouraged to establish

(1) strategic energy partnerships with the governments

of major energy producers and consumers, and other

governments; (2) a petroleum crisis response

mechanism with China and India; and (3) a Western

Hemisphere energy crisis response mechanism, a

ministerial Hemisphere Energy Cooperation Forum, and

a Hemisphere Energy Industry Group. Also, the bill

would establish a “Hemisphere Energy Cooperation

Forum,” that would be encouraged to implement

initiatives on energy sustainability and development.

Section 710 proposes the “No Oil Producing and

Exporting Cartels (NOPEC) Act, which would make it

illegal for any foreign state or group of states to limit

production of oil and natural gas to influence the price

of petroleum products in the United States. It would

deny the sovereign immunity of any state in violation of

the prohibition, and would allow the U.S. Attorney

General to bring action in any district court under

antitrust laws.

CRS-14

The House provision only addresses energy

cooperation with Israel.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

International Climate Cooperation on Climate Change

Title II, Subtitle A, states that it would be the policy of the

United States to take a more active and constructive role

in international climate change negotiations, specifying

future meetings of the Conferences of the Parties to the

United Nations Framework Convention on Climate

Change. Among the actions specified, the United States

would seek mitigation commitments from all major

greenhouse-gas (GHG) emitting nations, including China,

India, Brazil, and other major developing nations. An

Office on Global Climate Change would be established

within the Department of State, headed by an

Ambassador-at-Large who would advance U.S. goals

concerning reducing emissions of GHGs and serve as a

principal adviser to the President and Secretary of State

on climate change policy.

No similar provision.

No Senate provision.

Title III of H.R. 6 is similar to Title IV, Subtitle F, and

Title VII, Subtitle D, of H.R. 3221. The DOE program

would be expanded to include carbon storage and

carbon capture demonstration projects. Also, a

Department of the Interior program would be

established to assess the national carbon dioxide (CO2)

storage capacity.

The Senate bill does not include an NAS review of the

DOE programs, nor establish a university-based grant

program for geological sequestration science. Also, the

Senate bill does not require that EPA assess impacts of

CO2 capture and sequestration on public health and

safety and the environment. Title IV of the House bill

authorizes a higher level of appropriations for programs

than the Senate bill.

Carbon Storage

Title IV, Subtitle F, would expand the DOE program for

carbon capture to include R&D for carbon storage and

demonstration. DOE would conduct 7 initial large-volume

sequestration tests, preferably using carbon dioxide

(CO2) from large industrial or electricity-generating

sources, and would conduct at least 3 large-scale carbon

capture demonstration tests from industrial sources of

CO2. Beginning in 2011, the National Academy of

Sciences (NAS) would review the large-scale

sequestration and capture programs. EPA would conduct

a research program to assess potential impacts of CO2

storage on the environment, public health and safety

associated with capture and sequestration. A grant

program for graduate degrees in geological sequestration

science would be established.

Title VII, Subtitle D, would establish a program in the

Department of the Interior (DOI) to be conducted by the

U.S. Geological Survey that would develop a methodology

for, and conduct an assessment of, the CO2 storage

capacity of the United States.

CRS-15

(For more information on this topic see CRS Report

RL33801, Carbon Capture and Sequestration (CCS), by

(name redacted).)

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Carbon Neutral Government

Title VI, Subtitle A, would require each federal agency to

inventory its greenhouse gas emissions annually. EPA

would set collective annual emission reduction targets,

with a goal of zero net annual emissions (carbonneutrality) by 2050. Federal agencies would be allowed to

purchase qualified offsets and renewable energy

certificates in open market transactions. The maximum

agency funding for this Subtitle would be 0.01% of

discretionary funds in FY2009 and FY2010. This subtitle

would not preempt state actions.

No provision.

No Senate provision.

Title II, Subtitle E, would direct the Department of

Housing and Urban Development (HUD) to update

energy efficiency standards for all public and assisted

housing.

The House bill provision for building codes covers all

building sectors; the Senate bill is focused on public

housing and schools.

Energy Efficiency - Buildings

Title IX, Subtitle A, Part 3, would encourage stronger

state building codes. Part 4, Section 9043, would create

an Office of Commercial High Performance Green

Buildings at DOE. Section 9044 would establish a zeroenergy commercial buildings initiative. A national goal

would be set to achieve zero-net-energy use for new

commercial buildings built after 2025. Further, a goal

would be set to retrofit all pre-2025 buildings to zeronet-energy use by 2050. Certain green building

renovations would be eligible for loan guarantees under

§1703 of EPACT. Part 6 would create a federal revolving

fund that would make loans for combined heat and power

projects at public institutions.

Title IV Subtitle C, Part 2, would create a green schools

program.

The House bill has provisions for loan guarantees and a

revolving loan program.

Energy Efficiency - State and Local

Title IX, Subtitle A, Part 3, Section 9034, would increase

the funding authorization for the DOE Weatherization

program, providing $3.75 billion over 5 years.

Title II, Subtitle F, Section 271, would authorize $7

billion over 5 years for the DOE Weatherization

program and reauthorize the State Energy program.

The Senate bill would authorize nearly double the

amount of House-recommended Weatherization

funding.

Part 9 would direct the Department of Energy (DOE) to

establish an energy efficiency block grant program for

state and local governments. The program would support

the development of energy efficiency goals and strategies,

public outreach, and implementation.

Section 273 would require state utility regulatory

commissions to consider federal standards to promote

energy efficiency.

The House bill would not direct state regulatory

agencies to consider promoting energy efficiency.

CRS-16

Section 275 would create a nearly identical energy

efficiency block grant program at DOE.

The eligibility criteria for the energy efficiency block

grant program differ somewhat between the two bills.

The Senate would provide a higher share of funding for

states. The House would authorize “such sums as

needed” and the Senate would authorize $10 billion

over 5 years.

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Energy Efficiency - Small Business

Title III would establish loans, grants, and debentures to

help small businesses develop, invest in, and purchase

energy efficient buildings, fixtures, equipment, and

technology.

No provision.

No Senate provision.

Title II, Subtitle F, Section 277 would authorize up to

$100 million to establish a nearly identical program.

The House would authorize $25 million more than the

Senate. Also, the House provides for a “Pathways Out

of Poverty Demonstration Program” that is not in the

Senate proposal .

No provisions.

No Senate provisions.

No provision.

No Senate provision.

Green Jobs

Title I would authorize up to $125 million in funding to

establish national and state job training programs,

administered by the U.S. Department of Labor, to help

address job shortages that are impairing growth in green

industries, such as energy efficient buildings and

construction, renewable electric power, energy efficient

vehicles, and biofuels development

Electricity Transmission/Smart Grid

Title VII, Subtitle B, Chapter 5, would direct DOE to

study transmission capacity in California, Oregon, and

Washington to determine whether it could support new

electricity generation from ocean wave, tidal, and current

energy projects that could contribute up to 10% of total

electricity use in those states.

Title IX, Subtitle B, would create an electric grid

modernization commission to study and propose policies

on “Smart Grid” technology implementation. A federal

25% matching grant program would be created to

support implementation. DOE would be directed to help

deploy technologies and perform cooperative

demonstration projects with electric utilities. States

would be required to consider regulatory standards that

would allow utilities to recover smart grid investments

through rates and “decouple” utility profits from

electricity sales volume.

Wind Farm Impacts on Wildlife

Title VII, Subtitle B, Chapter 4, requires the Department

of the Interior to form a committee to recommend

guidance to minimize and assess impacts of land-based

wind turbines on wildlife and their habitat. State and

federal laws (and regulations) would not be preempted.

CRS-17

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

Renewable Energy R&D

Title IV would authorize funding for DOE to conduct

R&D programs on marine (Subtitle B), geothermal

(Subtitle C), solar (Subtitle D), and biofuels (Subtitle E)

energy R&D.

Title II, Subtitle G, would direct DOE to create an R&D

program focused on “marine energy” technology that

produces electricity from waves, tides, currents, and

ocean thermal differences. (For more background on

marine energy, see CRS Report RL33883, Issues Affecting

Tidal, Wave, and In-Stream Generation Projects.)

Both bills include marine energy. The House bill

includes other energy technologies.

No provision.

This provision is identical to the H-Prize in H.R. 632,

which passed the House before H.R. 3221.

Title VI would criminalize price gouging in fuel markets

during an energy emergency. (For more details, see CRS

Report RS22236, Gasoline Price Increases: Federal and

State Authority to Limit “Price Gouging”.

No provision in House bill. However, on May 23, 2007,

the House passed a similar version in a stand-alone bill,

H.R. 1252, the proposed Federal Price Gouging

Prevention Act.

No provision.

The major distinction between the agriculture energy

titles of H.R. 3221 and H.R. 2419 is that Title IX of H.R.

2419 has higher funding levels and more provisions than

in Title V of H.R. 3221. In particular, H.R. 2419

proposes a total of $3.2 billion in new funding for Title

IX energy provisions over 5 years compared with $2.2

billion under Title V of H.R. 3221. The most notable

energy provision of H.R. 2419 omitted from H.R. 3221

is a Biomass Energy Reserve (BER) program to provide

financial and technical assistance (including five year

contracts) to landowners and operators to grow

dedicated energy crops as feedstock for cellulosic

ethanol and other energy production.

Hydrogen Award

Title IV, Subtitle H, would direct DOE to conduct a

competitive program to award cash prizes (H-Prize) to

advance R&D, demonstration, and commercial application

of hydrogen energy technologies.

Price Gouging

No provision.

Agriculture Energy

Title V assumes several of the provisions from the energy

title (Title IX) of H.R. 2419—the Farm, Nutrition, and

Bioenergy Act of 2007—that was passed by the House on

July 2, 2007. Both Title V of H.R. 3221 and Title IX of

H.R. 2419 expand and extend several provisions from the

energy title (Title IX) established by the Farm Security

Act of 2002, including substantial increases in funding and

a heightened focus on developing cellulosic ethanol

production. In particular, Title V of H.R. 3221 includes

nearly $1 billion in production incentive payments on new

biofuels production; new funding to underwrite up to

$1.6 billion in loan guarantees for the development of

new biorefineries; and $236 million in new funding for

research on biomass production, harvest, transportation,

and storage. (For more background, see CRS Report

RL34130, Renewable Energy Policy in the 2008 Farm Bill.)

CRS-18

House-Passed H.R. 3221

Senate-Passed H.R. 6

Key Differences

ARPA-E

Title IV, Subtitle A, would direct that an Advanced

Research Projects Agency - Energy be established at

DOE.

CRS-19

No provision.

Similar provision signed into law as part of the America

Competes Act (P.L. 110-69, §5012).

Omnibus Energy Efficiency and Renewable Energy Legislation

Appendix A. House-Passed Version of H.R. 3221,

Division A: “New Direction for Energy

Independence, National Security, and Consumer

Protection Act”

The proposed New Direction for Energy Independence, National Security, and Consumer

Protection Act (H.R. 3221) is an omnibus energy policy bill that consists mainly of provisions for

energy efficiency and renewable energy. It was composed of several bills that were reported from

various committees.8 In House floor action on August 4, 2007, several amendments to H.R. 3221

were adopted, including one that would establish a renewable energy portfolio standard (RPS).

The House approved the amended bill by a vote of 241-172. Minutes later, the tax provisions bill

(H.R. 2776) was approved and then incorporated into H.R. 3221. A brief description of the

provisions in H.R. 3221 and H.R. 2776 follows.

Key Provisions Adopted and Absent

A description of some key provisions and amendments follows:

Renewable Energy Portfolio Standard (RPS).9 H.Amdt. 748 proposed an RPS target that would

reach 15% by 2020. Up to 4% of the target could be met with certain energy efficiency measures.

The amendment was approved by a vote of 220-190.

Renewable Energy and Energy Conservation Act (H.R. 2776). This bill proposed extensions and

additions of several tax incentives for renewable energy and energy efficiency, including a fouryear extension of the renewable energy electricity production tax credit. The bill was approved on

a separate floor vote by a tally of 221-189. It was subsequently incorporated into H.R. 3221.

Renewable Fuel Standard (RFS). Proposed Amendment 81 would have increased RFS to 36

billion gallons by 2022. It was withdrawn.

Corporate Average Fuel Economy (CAFE) Standards. Proposed amendments 62 and 95 offered

different policies for increasing CAFE standards. Proposed Amendment 95 was withdrawn, and

Proposed Amendment 62 was not included in the rule that prescribed floor action.

Oil Savings Provisions. Proposed Amendment 36 would have set a goal to reduce imported oil to

less than 25% of vehicle petroleum use by 2015. Proposed Amendment 72 would have called for

development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016, rising

significantly by 2025. Neither Amendment 36 nor Amendment 72 was included in the rule that

prescribed floor action.

The bills included H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R. 2635, H.R. 2701, H.R.

2773, H.R. 2774, H.R. 2776, H.R. 2847, and a draft bill (unnumbered) from the Committee on Energy and Commerce.

More details about the bills are available in the Legislation section of this report.

Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum amount of electricity from

renewable energy resources or purchase tradable credits that represent an equivalent amount of renewable energy

production. The minimum requirement is often set as a percentage share of a supplier’s total retail electricity sales.

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Title I—Green Jobs

This title assumes the provisions of H.R. 2947. It would authorize up to $125 million in funding

to establish national and state job training programs, administered by the U.S. Department of

Labor, to help address job shortages that are impairing growth in green industries, such as energy

efficient buildings and construction, renewable electric power, energy efficient vehicles, and

biofuels development.

Title II—The International Climate Cooperation Re-engagement

Act of 2007

This title assumes the provisions of H.R. 2420. It would declare U.S. policy on international

climate cooperation, authorize assistance to promote clean and efficient energy technologies in

foreign countries, and establish the International Clean Energy Foundation.

Subtitle A—U.S. Policy on Global Climate Change

This subtitle would state that it is the policy of the United States to take a more active role in

international climate change negotiations including future fifteenth meeting of the Conference of

Parties (COP-15) to the United Nations Framework Convention on Climate Change. Also, the

United States would declare its intent to seek mitigation commitments from all major greenhouse

gas (GHG) emitting nations, including China, India, Brazil, and other major developing nations.

An Office on Global Climate Change would be established at the Department of State. The

Secretary of State would be required to report to Congress on progress made in promoting

transparency in extractive industries resource payments.

Subtitle B—Assistance for Clean and Efficient Energy Technologies

The U.S. Agency for International Development (USAID) would be directed to report to

Congress on efforts to support policies for clean and efficient energy technologies. The

Department of Commerce would be directed to increase efforts to export such technologies and

report to Congress on the results. Other U.S. agencies with export promotion responsibilities

would be required to increase efforts to support these technologies. Also, increased efforts are

requested from the Interagency Working Group on the Clean Energy Technology Exports

Initiative, particularly to implement its 2002 strategic plan. The Secretary of State would be

required to report to Congress on the impact of global climate change on developing countries.

Subtitle C—International Clean Energy Foundation

The Foundation would be established with the long-term goal of reducing GHG emissions. It

would be directed to use the funds authorized by this subtitle to make grants to promote projects

outside of the United States that serve as models of how to reduce emissions. An annual report to

Congress would be required.

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Title III—Small Energy-Efficient Businesses

This title assumes the provisions of H.R. 2389. Loans, grants, and debentures that would be

established to help small businesses develop, invest in, and purchase energy efficient buildings,

fixtures, equipment, and technology. On May 23, 2007, the House Committee on Small Business

ordered reported H.R. 2389 by voice vote.

Title IV—Science and Technology

This title has eight subtitles, most of which correspond to a bill ordered reported by the House

Committee on Science and Technology.

Subtitle A—Advanced Research Projects Agency—Energy

This subtitle assumes the provisions of H.R. 364. ARPA-E would be established at the

Department of Energy (DOE). The new agency’s goal would be to reduce the energy imports

from foreign sources by 20% over the next 10 years. On May 23, 2007, the House Science and

Technology Committee ordered reported H.R. 364. On August 9, 2007, the President signed the

America Competes Act (P.L. 110-69). In that law, Section 5012 (Title V) directs that an ARPA-E

be established at DOE.

Subtitle B—Marine Renewable Energy

This subtitle assumes the provisions of H.R. 2313. DOE would be directed to support wave, tidal,

current, and ocean thermal energy technology R&D and commercial applications to help expand

energy production. Further, DOE would be instructed to award grants to institutions of higher

education (or consortia thereof) to establish National Marine Renewable Energy Research,

Development, and Demonstration Centers. On June 21, 2007, the House Committee on Science

and Technology reported H.R. 2313.

Subtitle C—Geothermal Energy

This subtitle assumes the provisions of H.R. 2304. DOE’s program for geothermal energy R&D,

demonstration, and commercial application would be expanded to cover certain advanced

concepts. On June 21, 2007, the Committee reported H.R. 2304.

Subtitle D—Solar Energy

Part 1 assumes the provisions of H.R. 2774. It aims to improve the cost and effectiveness of

thermal energy storage technologies that could improve the operation of concentrating solar

power electric generating plants. Also, it calls for improved integration of concentrating solar

power into regional electricity transmission systems. On June 22, 2007, the House Committee on

Science and Technology ordered reported H.R. 2774 by voice vote.

Part 2 would require DOE to create a Solar Energy Industries Research and Promotion Board and

a Solar Energy Research and Promotion Operating Committee. The Board and Committee would

work with manufacturers and importers of solar energy products to improve consumer awareness

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

of solar energy options and appropriate certifications. The solar program would be funded by a

small portion of industry revenues. No appropriations are authorized.

Subtitle E—Biofuels

This subtitle assumes the provisions of H.R. 2773. It aims to improve information about federal

biofuels research programs, focus research on infrastructure and biorefineries, study potential

impacts of increased biofuels use, and increase authorized funding for DOE biofuels research. An

authorization of $25 million would be created to provide grants for biofuels RD&D and

commercial applications in states that have low rates of ethanol production. A university-based

program would provide grants up to $2 million for R&D on renewable energy technologies.

Priority would be given to universities in low income and rural communities with proximity to

trees dying of disease or insect infestation.

Subtitle F—Carbon Capture and Storage

This Subtitle assumes the provisions of H.R. 1933. A program would be established at DOE for

carbon capture and storage R&D and demonstration. DOE would be directed to engage the

National Academy of Sciences (NAS) to conduct a review of the program. EPA would be directed

to assess potential impacts of such storage on public health and safety and the environment. DOE

would be directed to work with NAS to establish graduate degree programs on geological

sequestration at universities. Further, a university-based grant program would be created.

Subtitle G—Global Change Research

Part 1 would direct the President to establish an interagency committee to coordinate research on

global change. The committee would be responsible for developing a national global change

research and assessment plan. Further, a U.S. global change research program would be

established, with the Office of Science and Technology Policy (OSTP) serving as the lead agency.

A report to Congress would be required to accompany each annual budget request.

Part 2 would establish an interagency working group charged with recommending ways to

coordinate federal data management and archiving activities for climate data and other global

change data.

Subtitle H—H-Prize

DOE would be directed to conduct a competitive program to award cash prizes to advance R&D,

demonstration, and commercial application of hydrogen energy technologies. The provisions of

this Subtitle are identical to those of H.R. 632, which passed the House on June 6, 2007.

Title V—Agriculture Energy

This title assumes the provisions of H.R. 2419. Agricultural-based energy programs established

by the Farm Security Act of 2002 would be expanded and continued through FY2012. A total of

about $3.2 billion in new funding is proposed including $1.4 billion for biofuels production

incentives, $800 million to underwrite up to $2 billion in loan guarantees for biorefineries, $420

million for research on biomass feedstocks and production, and new mandatory funding for a

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cellulosic biomass feedstock reserve. Most new funding would be directed away from corn-based

ethanol and toward cellulosic-based biofuels and other new technologies. USDA would be

directed improve feedstock flexibility for bioenergy producers by purchasing eligible

commodities and selling them to bioenergy producers in a way that ensures no cost to the federal

government and avoids forfeitures to the Commodity Credit Corporation. Except for sections

5011 and 5012, all other provisions of Title V are included in H.R. 2419, the Farm, Nutrition, and

Bioenergy Act of 2007, which passed the House on July 27, 2007. (For more background, see

CRS Report RL34130, Renewable Energy Policy in the 2008 Farm Bill.)

Title VI—Carbon-Neutral Government Act

This title assumes the provisions of H.R. 2635. It would set a goal to make the federal

government carbon-neutral by 2050. Several energy and fuel efficiency policies would be

undertaken to meet this goal, including standards for federal fleet emissions, green buildings, and

agency purchases of renewable energy.

Subtitle A—Federal Government Inventory and Management of Greenhouse

Gas (GHG) Emissions

Each federal agency would be required to inventory and report on its GHG emissions annually.

EPA would be required to review the each agency’s inventory to see that it complied with

guidance for data collection. EPA would be directed to set a collective annual emission reduction

target for each year in the period from 2010 through 2050. The goal would be to achieve zero net

annual emissions (carbon-neutrality) by 2050. The Government Accountability Office (GAO)

would be required to issue a report on markets for GHG offsets. Federal agencies would be

allowed to purchase offsets and renewable energy certificates in open market transactions. This

subtitle would not preempt or limit any state actions to reduce emissions.

Subtitle B—Federal Government Energy Efficiency

Federal agencies would be required to purchase “low GHG” vehicles and to procure energyefficient (Energy Star) products or products designated by the federal energy management

program (FEMP-designated). DOE would be directed to establish, by rule, revised federal

building energy efficiency performance standards for new federal buildings and major federal

building renovations. Relative to a comparable building’s fuel use in 2003, buildings covered by

the rule would be directed to reduce the share of fossil fuel use by 55% in 2010, reducing steadily

to 100% (zero emissions) by 2030. Each federal agency would be required to ensure that a large

capital investment in an existing building that is not a major renovation employs the most energy

efficient designs, systems, equipment, and controls that are life-cycle cost effective. Federal

agencies would be directed to avoid leasing buildings that are not Energy Star rated. Alternative

fuels could not be procured if they have GHG emissions greater than those produced by

conventional petroleum. Federal contracts for renewable energy could not exceed 30 years and

could not include energy generated from municipal solid waste. The Office of Management and

Budget (OMB) would be required to report annually on progress under Title VI.

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Subtitle C—Telework Enhancement

Federal executive branch agencies would be directed to develop and implement a telework (work

from home or close to home) policy for eligible employees. It would exclude those employees

who handle secure materials or special equipment, are assigned to national security functions, or

voluntarily decline the telework option.

Title VII—Natural Resources Committee Provisions

This title assumes the provisions of H.R. 2337. It includes provisions that would regulate wind

impacts on wildlife, require a study of transmission capacity to help foster ocean wave, tidal, and

current energy projects, create grants for studies of alternative energy development on the outer

continental shelf, and establish pilot programs to use federal lands to harvest woody biomass and

install concentrating solar power facilities.

Subtitle A—Energy Policy Act of 2005 Reforms

Subtitle A would repeal subsections 365(g) and 365(i) of EPAct 2005 regarding recovery of

permit processing costs. It would require the Secretary of the Interior to impose fees on the oil

and gas industry to recover costs associated with the streamlining of permits during the pilot

project established by EPAct to improve federal permit coordination. A new 45-day deadline

would be imposed for the consideration of applications for permits under section 366 of EPAct

2005. Section 369 of EPAct would be amended by removing two deadlines related to oil shale

research and development and the preparation of a final environmental impact statement for

commercial oil shale and tar sands leasing on public lands. H.R. 3221 would limit section 390 of

EPAct, which allows for a rebuttleable presumption regarding the application of categorical

exclusion under the National Environmental Policy Act (NEPA) for oil and gas exploration and

development activities, and adhere to the regulations issued by the Council on Environmental

Quality. And a Best Management Practices (BMP) provision would require BLM to allow for

public comment and review before lease stipulation waivers are granted.

(More details on Subtitle A can be found in CRS Report RL34111, Energy Policy Reform and

Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas

Provisions.)

Subtitle B—Federal Energy Public Accountability, Integrity, and Public

Interest

Chapters 1 through 3 would require a minimum of 550 audits annually, and increase fines for

royalty payment violations under the Federal Oil and Gas Royalty Management Act of 1982

(FOGRMA). Surface owner protection would be enhanced under split estates where the federal

government owned and leased minerals. Onshore oil and gas reclamation and bonding

requirements would become more stringent. Additional requirements for the protection of water

resources are included and new fees would be assessed to lessees of federal lands as a

disincentive to hold and not develop those lands. (More details on Chapters 1 through 3 of

Subtitle B can be found in CRS Report RL34111, Energy Policy Reform and Revitalization Act of

2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas Provisions.)

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Chapter 4 on Wind Energy would require the Department of the Interior to form a wind turbines

guidelines advisory committee to study and recommend guidance for wind energy developers to

mitigate the impact of turbines on birds and wildlife. State laws and regulations would not be

preempted.

Chapter 5 on Enhancing Energy Transmission would direct DOE to study transmission capacity

in California, Oregon, and Washington to determine whether it could support new electricity

generation from ocean wave, tidal, and current energy projects that could contribute up to 10% of

total electricity use in those states.

Subtitle C—Alternative Energy and Efficiency

A grant program would be created for studies of alternative energy development on the outer

continental shelf. The Department of the Interior would be directed to assess and report to

Congress on the potential for using leasing of federal lands and other means to help develop

rights-of-way and infrastructure along Bureau of Reclamation canals to support solar and wind

energy production. A program would be established to research methods for improving the energy

efficiency of reverse osmosis technology that is used for water desalination, water recycling, and

clean up of water contamination. A pilot program would be created to develop a strategic solar

reserve, and would identify and assess potential sites on federal lands for concentrating solar

power systems. The National Oceanic and Atmospheric Administration would be directed to issue

regulations necessary to implement its authority to license offshore thermal energy conversion

facilities. A program would be established to use biomass from federal forest lands.

Subtitle D—Carbon Capture and Climate Change Mitigation

Chapter 1 would direct the Department of the Interior to develop a methodology for an

assessment of the national potential for geological storage of carbon dioxide. Chapter 2 would

direct the U.S. Geological Survey to estimate the potential for increasing carbon sequestration in

natural systems through management measures or restoration activities in each ecosystem. A

report to Congress would be required. Chapter 3 would direct the Bureau of Land Management to

maintain records on, and an inventory of, the amount of carbon dioxide stored in geological

structures on federal lands. A report to Congress would be required that estimates the potential

capacity for such storage on federal lands.

Chapter 4 would direct the Department of the Interior to establish an interagency National

Resources Management Council on Climate Change to address the impacts of climate change on

Federal lands, the ocean environment, and the federal water infrastructure. The Council would

prepare a national plan that would be presented to Congress. Also, a national policy would be

established that directs the federal government to cooperate with state, tribal, and affected local

governments, other concerned public and private organizations, landowners, and citizens to use

all practicable means and measures to assist wildlife populations and their habitats in adapting to

and surviving the effects of global warming. A national strategy would be developed, an advisory

board would be formed, and a state and tribal grants program would be established.

Chapter 5 would direct the Department of Commerce to develop a national strategy to support

coastal state and federal agency efforts to predict, plan for, and mitigate the impacts on ocean and

coastal ecosystems from global warming, relative sea level rise, and ocean acidification. Further,

it would be directed to develop a coastal climate change resiliency planning and response

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program to prepare for and reduce the negative consequences that may result from climate change

in the coastal zone, and provide financial and technical assistance and training. Also, a National

Integrated Coastal and Ocean Observation System would be established to improve the Nation’s

capability to measure, track, explain, and predict events related directly and indirectly to weather

and climate change.

Subtitle E—Royalties Under Offshore Oil and Gas Leases

This Subtitle would require that the Secretary of the Interior accept a lessee’s request to modify

certain leases established in 1998 and 1999 without price thresholds (“covered leases”) to include

price thresholds. Lessees holding “covered leases” would not be eligible for new oil and gas

leases in the Gulf of Mexico unless the covered leases are modified to include price thresholds or

the lessee would agree to pay a newly established “conservation of resources fee.” The Subtitle

would repeal royalty relief provisions established by sections 344 and 345 of the Energy Policy

Act of 2005 (P.L. 109-58). It would also “reaffirm” the Secretary’s authority to impose a price

threshold in certain leases. This Subtitle is nearly identical to Title II of the House-passed version

of H.R. 6.

(More details on Subtitle E can be found in CRS Report RS22567, Royalty Relief for U.S.

Deepwater Oil and Gas Leases.)

Subtitle F—Additional Provisions

Subtitle F would establish an Oil Shale Community Impact Assistance Fund. Also, for certain

existing federal leases, it would prohibit surface occupancy for oil and gas drilling on Colorado’s

Roan Plateau, which is federal land formerly designated as Naval Oil Shale Reserves. (More

details on oil and natural gas provisions in Subtitle F can be found in CRS Report RL34111,

Energy Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and

Discussion of Oil and Gas Provisions.)

Also, the Minerals Management Service would be directed to report to Congress on the status of

regulations required by the Outer Continental Shelf Lands Act with respect to wind energy

production on the outer continental shelf.

Title VIII—Transportation and Infrastructure

This title assumes the provisions of H.R. 2701. It would promote energy efficient transportation

and public buildings and create incentives for the use of alternative fuel vehicles and renewable

energy. On June 20, 2007, the House Committee on Transportation and Infrastructure ordered

reported H.R. 2701 by voice vote.

Subtitle A—Department of Transportation (DOT)

A Center for Climate Change and Environment would be established to plan, coordinate, and

implement strategies to reduce transportation-related energy use, mitigate the effects of climate

change, and address the impacts of climate change on transportation systems and infrastructure.

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Subtitle B—Highways and Transit

Part 1 provides support for public transportation systems. Federal grants up to 100% of costs

would be made available to improve public transportation services that involve fare reductions.

For projects that involve acquiring clean fuel or alternative fuel vehicle-related equipment or

facilities for the purposes of complying with the Clean Air Act, federal grants would be made

available that cover up to 100% of net costs. The Surface Transportation Board’s mediation

capacity would be expanded to assist public transportation agencies seeking track rights of way

with rail carriers. DOT would be directed to create a pilot program to conduct vanpool

demonstration projects in three urbanized areas and two non-urbanized areas to increase vanpool

use and the number of vanpools in service.

Part 2 provides support for federal-aid highways. The federal share for congestion mitigation and

air quality (CMAQ) projects would be increased up to 100% of project or program cost. A sense

of Congress would be established that in constructing new roadways or rehabilitating existing

facilities, state and local governments should employ policies designed to accommodate all users,

including motorists, pedestrians, cyclists, transit riders, and people of all ages and abilities.

Subtitle C—Railroad and Pipeline Transportation

Part 1 would direct DOT, in coordination with EPA, to establish and conduct a pilot grant

program to assist railroad carriers in purchasing hybrid locomotives, including hybrid switch

locomotives, in order to demonstrate the extent to which such locomotives increase fuel economy,

reduce emissions, and lower costs of operation. Also, DOT would be directed to create a program

of capital grants for the rehabilitation, preservation, or improvement of railroad track (including

roadbed, bridges, and related track structures) of class II and class III railroads.

Part 2 would direct DOT to conduct feasibility studies for the construction of pipelines dedicated

to ethanol transportation. A report to Congress would be required.

Subtitle D—Maritime Transportation

Part 1 would direct DOT to establish a short sea transportation program and designate short sea

transportation projects to be conducted under the program to mitigate landside congestion. Short

sea shipping activities would be made eligible for support from DOT’s capital construction fund.

A report to Congress on the short sea transportation program would be required. Part 2 would

strengthen certain provisions that aim to prevent pollution from ships.

Subtitle E—Aviation

DOT, in coordination with EPA, would be directed to establish a pilot demonstration grant

program to reduce noise, airport emissions, greenhouse gas emissions, or water quality impacts.

Each project grant would be limited to a maximum of $2.5 million.

Subtitle F—Public Buildings

Under Part 1, for each prospective project to construct, alter, acquire, or lease a building, the

General Services Administration (GSA) would be directed to prepare estimates of the future

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energy performance of the building and a description of the use of energy efficient and renewable

energy systems, including photovoltaic systems, in carrying out the project. The period for

calculating life-cycle cost effectiveness in federal buildings would be extended from 25 years to

40 years. GSA would be directed to use up to $30 million authorized from unobligated balances

of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the

DOE headquarters building in Washington, DC.

Part 2 would prohibit, except under certain circumstances, the purchase of incandescent light

bulbs for use in Coast Guard office buildings.

Part 3 would allow the Architect of the Capitol (AOC) to perform a feasibility study regarding

construction of a photovoltaic roof for the Rayburn House Office Building. The AOC may

construct a fuel tank and pumping system for E—85 fuel at or within close proximity to the

Capitol Grounds Fuel Station. To the maximum extent practicable, the AOC would be required to

include energy efficiency measures, climate change mitigation measures, and other appropriate

environmental measures in the Capitol Complex Master Plan. For the purpose of reducing carbon

dioxide emissions, the Architect of the Capitol would be directed to install technologies for the

capture and storage or use of carbon dioxide emitted from coal combustion in the Capitol Power

Plant. AOC would be directed to operate the steam boilers and chiller plant at the Capitol Power

Plant in the most energy efficient manner possible to minimize carbon emissions and operating

costs.

Subtitle G—Water Resources and Emergency Management Preparedness

Part 1 would declare a federal policy that all federal water resources projects reflect national

priorities for flood damage reduction, navigation, ecosystem restoration, and hazard mitigation

and consider the future impacts of increased hurricanes, droughts, and other climate changerelated weather events. A 21st Century Water Commission would be established to project future

water supply and demand, impacts of climate change to the nation’s flood risk and water

availability; and associated impacts of climate change on water quality. EPA would be directed to

arrange with NAS for a study that will identify the potential impacts of climate change on the

nation’s watersheds and water resources, including hydrological and ecological impacts,

including the potential impacts of climate change on water quality. The Secretary of the Army

would be directed to ensure that water resources projects and studies carried out by the Corps of

Engineers take into account the potential short and long term effects of climate change.

Part 2 would direct the Federal Emergency Management Agency (FEMA) to conduct a

comprehensive study of the increase in demand for FEMA’s emergency preparedness, response,

recovery, and mitigation programs and services that may be reasonably anticipated as a result of

an increased number and intensity of natural disasters affected by climate change, including

hurricanes, floods, tornadoes, fires, droughts, and severe storms.

Title IX—Energy and Commerce

This title assumes the provisions of a draft bill adopted by the House Committee on Energy and

Commerce on June 28, 2007.

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Subtitle A—Promoting Energy Efficiency

This subtitle has nine parts.

Part 1 on appliance efficiency would set new efficiency standards for residential clothes washers,

dishwashers, dehumidifiers, refrigerators, refrigerator-freezers, freezers, electric motors, and

residential boilers. DOE would be allowed to establish regional variations in standards for heating

and air conditioning equipment. DOE would be required to complete a rulemaking process for

furnace fans by 2013. Federal agencies would be directed to purchase devices that limit standby

power use. DOE would be directed to issue a final rule that sets energy conservation standards for

battery chargers. Certain energy efficiency measures for walk-in coolers and walk-in freezers

would be set by legislation. Also, several procedural changes would be made to expedite the DOE

rulemaking process.

Part 2 would set a mandatory target for lighting efficiency, set a standard for incandescent

reflector lamps, and require federal agencies to replace incandescent lights with more efficient

ones. Energy efficiency standards would be set by legislation for metal halide lamp fixtures

designed to be operated with lamps rated between 150 watts and 500 watts.

Part 3 on residential buildings would encourage stronger state building codes, require improved

codes for manufactured housing, and reauthorize the DOE Weatherization program. DOE would

be directed to conduct a study of the renewable energy system rebate program described in

§206(c) of the Energy Policy Act of 2005. The study would determine the minimum funding the

program would need to be viable and require a proposed implementation plan.

Part 4 on commercial and federal buildings would create an Office of High Performance Green

Buildings at DOE. The office would be required to use life-cycle costing and allow agencies to

retain cost savings. Federal procurement of green building materials would be increased. Federal

agencies would be required to identify energy- and water-saving measures. Demonstration

projects would be required at federal facilities and universities. A national goal would be set to

achieve zero-net-energy use for new buildings constructed after 2025. Public outreach would be

established, including green building technical assistance and information. An EPA program

would be established to improve energy efficiency in data centers. Certain green building

renovation projects would be eligible for loan guarantees under §1703 of EPACT. GSA would be

directed to use available appropriations to support a program to accelerate the use of geothermal

(ground source) heat pump equipment in federal facilities. In each purchase of meeting and

conference services, federal agencies would be required to consider the environmentally

preferable (green) features and practices of a vendor in a manner similar to that already

implemented by EPA. A grant program would be established to provide up to $1 million in

support of energy efficiency projects at universities.

Part 5 on industrial energy efficiency would direct EPA to identify the potential for economically

feasible waste energy recovery, create a grant program to support waste energy recovery, and

strengthen “clean energy centers” that analyze waste energy recovery.

Part 6 on energy efficiency of public institutions would promote combined heat and power

systems in public institutions through federal revolving fund loans. EPA would be directed to

conduct a study of how sustainable building features, such as energy efficiency, affect perceived

indoor environmental quality for students in K-12 schools.

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Part 7 on energy savings performance contracting (ESPC) would allow use of appropriated funds

for ESPCs, eliminate the ESPC program sunset, require training for federal agency contract

officers, direct that energy savings be measured, and create a DOE advisory committee to assist

with deployment strategies.

Part 8 would create an advisory committee on energy efficiency financing.

Part 9 would establish an energy efficiency block grant program.

Subtitle B—Smart Grid Facilitation

This subtitle would create an electric grid modernization commission to study and propose

policies on “Smart Grid” technology implementation. A federal 25% matching grant program

would be created to support implementation. DOE would be directed to help deploy technologies

and perform cooperative demonstration projects with electric utilities. States would be required to

consider regulatory standards that would allow utilities to recover smart grid investments through

rates and “decouple” utility profits from electricity sales volume.

Subtitle C—Loan Guarantees

This subtitle would amend EPACT Section 1702(c) on loan guarantees to clarify that DOE should

approve project amounts likely to attract other investment, may not establish a loan guarantee

limit below 80% of total project cost, and should require assurances that construction workers

will be paid prevailing wage rates. Also, categories of projects deemed eligible in EPACT Section

1703 could not be excluded by language in appropriations bills.

Subtitle D—Renewable Fuel Infrastructure and International Cooperation

Part 1 of this subtitle would direct DOE to create a grant program to help establish or convert

infrastructure to use renewable fuels, including E85 (85% ethanol). The EPACT authorization for

grants to support cellulosic ethanol production would be increased. A grant program would be

created to support production of flexible-fueled vehicles. Studies would also be required on the

market penetration of flexible-fueled vehicles, the feasibility of constructing dedicated ethanol

pipelines, the feasibility of using greater percentages of ethanol in fuel blends, and the adequacy

of railroad transportation for delivery of ethanol fuel. Part 2 of this subtitle would establish a

grant program and advisory board for U.S.-Israel energy cooperation. The provisions of this

Subtitle are identical to those of H.R. 3238.

Subtitle E—Advanced Plug-In Hybrid Vehicles and Components

This subtitle would establish a loan guarantee program for advanced battery development, grant

programs for plug-in hybrid vehicles, incentives for purchasing heavy duty hybrids for fleets, and

credits for various electric vehicles.

Subtitle F—Availability of Critical Energy Information

This Subtitle would improve data collection needed by the DOE’s Energy Information

Administration to support efficient energy markets.

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Subtitle G—Natural Gas Utilities

Each natural gas utility would be required to make energy efficiency a priority resource and

integrate energy efficiency into its plans and planning processes. Further, state regulators would

be directed to consider crafting rate policies that align utility revenue recovery measures with

incentives for energy efficiency measures. This Subtitle was added by floor amendment (H.Amdt.

755), which was approved by voice vote.

Subtitle H—Federal Renewable Portfolio Standard (RPS)

This Subtitle would modify Title VI of the Public Utility Regulatory Policies Act of 1978 to

establish an RPS for retail electric utilities that would be administered by DOE. For each retail

supplier that sells more than one billion kilowatt-hours (kwh) per year, the RPS would set a

minimum electricity production requirement from renewable resources. The standard would start

at 2.75% in 2010 and then rise annually until reaching a peak of 15% in 2020. Electricity savings

from energy efficiency measures would be allowed to compose a maximum of 25% of the

standard in any given year, rising to a peak of 4% of the 15% total in 2020. Many provisions in

this Subtitle are similar to those of H.R. 969. This Subtitle was added by floor amendment

(H.Amdt. 748), which was approved by a vote of 220 to 190.

(More details on Subtitle H can be found in CRS Report RL34116, Renewable Energy Portfolio

Standard (RPS): Background and Debate Over a National Requirement.)

Subtitle I—Large and Small Scale Hydropower

Congress expresses its recognition and support for renewable energy. In particular, this

recognition and support is conferred on clean, consistent, pollution-free large and small scale

conventional hydropower energy. This Subtitle was added by floor amendment (H.Amdt. 755),

which was approved by vote of 402 to 9.

H.R. 3221, Division B: “Renewable Energy and Energy

Conservation Act of 2007” (formerly H.R. 2776)

Title XI—Production Incentives

This Title would extend the renewable electricity production tax credit (PTC) for four years,

expand the PTC to include ocean thermal and hydrokinetic (wave, tide, and current) energy,

extend the 30% business energy tax credit for solar and fuel cell equipment for eight years,

authorize $2 billion of clean renewable energy bonds, and remove the cap on the tax credit for

residential solar and fuel cell equipment. (For more discussion of these tax provisions see CRS

Report RL33578, Energy Tax Policy: History and Current Issues.)

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Title XII—Conservation

Subtitle A—Transportation

Transportation fuel incentives would set a $4,000 credit for plug-in hybrid vehicles, establish a 50

cent per gallon production tax credit for cellulosic ethanol fuel, extend the biodiesel production

tax credit for two years, increase the alternative refueling stations tax credit, create a fringe

benefit for bicycle commuters, and modify depreciation and expensing rules to close a loophole

for gas guzzlers by making the incentives available for fuel efficient vehicles. (For more

discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and

Current Issues, by (name redacted).)

Subtitle B—Other Conservation Provisions

Other energy efficiency provisions include a tax credit bond for community programs to reduce

greenhouse gases, a tax credit bond for states to provide loans and grants for home improvements

and residential equipment, an extension of the tax deduction for commercial buildings, an

extension and modification of the appliance credit, and the establishment of a five-year

depreciation period for smart electric meters. Also, the bill would clarify that the $1 per gallon

production credit for renewable diesel would be available only for fuel produced from biomass. A

study of biofuels’ future production potential and possible domestic impacts would be required.

(For more discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy:

History and Current Issues.)

Title XIII—Revenue Provisions

Subtitle A—Denial of Oil and Gas Tax Benefits

(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and

Current Issues.)

Subtitle B—Clarification of Eligibility for Certain Fuel Credits

(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and

Current Issues.)

Title XIV—Other Provisions

Subtitle A—Studies

(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and

Current Issues.)

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Subtitle B—Application of Certain Labor Standards on Projects Financed

Under Tax Credit Bonds

(For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and

Current Issues.)

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Appendix B. Senate-Passed Version of H.R. 6:

“Renewable Fuels, Consumer Protection, and

Energy Efficiency Act”

The proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 (H.R.

6) is an omnibus energy policy bill that consists mainly of provisions for energy efficiency and

renewable energy. The House version of H.R. 6 was amended on the Senate floor. S.Amdt. 1502,

an amendment in the nature of a substitute, replaced the House version with the text of S. 1419.10

Several second degree amendments to S.Amdt. 1502 were adopted. The Senate approved the

amended bill by a vote of 65-27 on June 21, 2007.

Key Provisions Adopted and Rejected

A description of some key provisions and amendments follow:

Renewable Fuel Standard (RFS). Section 111 would increase RFS to 8.5 billion gallons per year

by 2008, rising to 36 billion gallons by 2022.

Corporate Average Fuel Economy (CAFE) Standards. The CAFE standard in Section 502 was

modified by S.Amdt. 1792. The adopted provision proposes increases to the combined average

fuel economy standard for cars and light trucks that would reach 35 miles per gallon (mpg) by

2020. This would be an increase of about 10 mpg over current standards. The amendment (as

modified by S.Amdt. 1843) was adopted by voice vote.

Oil Savings Provision. S.Amdt. 1505 established this provision as Section 251. The provision

calls for development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016,

rising to 10 mbd by 2031, about 35% of projected demand for that year. The amendment was

adopted by a vote of 63-30.

Renewable Portfolio Standard (RPS).11 S.Amdt. 1537 would have added a new title to create an

RPS that would reach 15% by 2020. Certain energy efficiency measures would have also been

allowed to help fulfill the RPS. The amendment was never considered for a vote and, after a

successful cloture vote on S.Amdt. 1502, the RPS amendment was ruled non-germane. Also,

S.Amdt. 1538 would have amended S.Amdt. 1537 to create a 20% “clean portfolio standard” that

included renewables, efficiency, coal, and nuclear energy. The amendment was tabled by a vote of

56-39.

Tax Provisions. S.Amdt. 1704 would have added a new tax title that included some of the

provisions for renewables and energy efficiency in S. 1531. The proposed amendment included a

S.Amdt. 1502 was based primarily on S. 1419, which, in turn, was composed of four bills. These four bills, and the

corresponding titles of S. 1419, are: Energy Savings Act (S. 1321), Titles I, II, and III; Public Buildings Cost Reduction

Act (S. 992), Title IV; Ten-in-Ten Fuel Economy Act (S. 357), Titles V and VI; and the Energy Diplomacy and Security

Act (S. 193), Title VII.

Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum amount of electricity from

renewable energy resources or purchase tradable credits that represent an equivalent amount of renewable energy

production. The minimum requirement is often set as a percentage share of a supplier’s total retail electricity sales.

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five-year extension of the renewable electricity production tax credit. It also included many

provisions for biofuels and some provisions for oil, coal, and vehicles. The amendment failed to

achieve cloture by a vote of 57-36, and was subsequently ruled non-germane. A brief summary of

each of these eight titles in the Senate-passed version of H.R. 6 follows.

Title I—Biofuels for Energy Security and Transportation

Title I would increase the renewable fuel standard, set some standards for greenhouse gas

emissions reductions, and provide support for fuel infrastructure, feedstocks, and biorefineries.

Subtitle A—Renewable Fuel Standard

Subtitle A would extend and increase the renewable fuel standard (RFS), which establishes

minimum annual levels of renewable fuel in gasoline. The modified standard would start at 8.5

billion gallons in 2008 and rise to 36 billion gallons in 2022. Starting in 2016, an increasing

portion of the requirement would have to be met with advanced biofuels, including cellulosic

ethanol, biobutanol, and other fuels derived from unconventional biomass feedstocks. Renewable

fuels produced from new biorefineries would be required to achieve at least a 20% reduction in

life cycle greenhouse gas emissions relative to life cycle emissions from gasoline (§

111[a][1][i][II]). A voluntary labeling program would be established for renewable fuels, based on

life cycle greenhouse gas emissions (§ 111[i]). Fuel produced from biorefineries that displaces

more than 90% of the fossil fuels used in a biofuel production facility would qualify for

additional credits under the RFS (§ 112).

Subtitle B—Renewable Fuels Infrastructure

Subtitle B would provide grants for renewable fueling infrastructure (§ 121), increase the

Department of Energy (DOE) bioenergy R&D funding authorization (§ 122), establish 11

bioenergy research centers (§ 123), provide loan guarantees for renewable fuel facilities (§ 124),

provide research grants for states with low rates of ethanol production (§ 125), provide grants for

infrastructure for transportation of biomass to local refineries (§ 126), establish a biorefinery

information center (§ 127), create an alternative fuels database (§ 128), set a labeling requirement

for alternative fuels (§ 129), and set a national biodiesel fuel quality standard (§ 130).

Subtitle C—Studies

Subtitle C would require that several studies be conducted, covering specialized topics on

biofuels, ethanol, electric vehicles, and biodiesel.

Subtitle D—Environmental Safeguards

DOE would be directed to create a grant program to encourage production of advanced biofuels

(§161). Grant awards would be made to projects that would have the greatest reduction in

lifecycle greenhouse gas (GHG) emissions. The projects must also reduce GHG emissions by at

least 50%. Studies, and subsequent reports to Congress, would be required on environmental

impacts of increased use of renewable fuels attributable to the provisions of this bill (§162).

Specific aspects would include air and water quality, land use patterns, deforestation rates, GHG

emissions, and the long-term capacity to produce biomass feedstocks. Also, EPA would be

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directed to study whether the volumes of renewable fuel required under Subtitle A would

adversely impact air quality.

Title II—Energy Efficiency Promotion

Title II would set some new standards for energy efficient equipment, establish goals for fuel

savings, strengthen federal energy efficiency requirements, and authorize several new programs

for vehicles and grants.

Subtitle A—Promoting Advanced Lighting Technologies

Subtitle A would promote advanced lighting technology by requiring all federal lighting to be

Energy Star rated by 2010 (§ 211), expanding efficiency standards for incandescent reflector

lamps (§ 212), creating the “Bright Tomorrow” lighting prizes for solid state (LED) lighting

developments (§ 213), and establishing a “Sense of the Senate” to pass mandatory energy

efficiency performance targets for lighting products (§ 214). Also, the Committee markup added a

notable provision that did not appear in S. 1115. That provision would authorize grants to support

construction of solar, wind, geothermal, ocean, biomass, landfill gas, and Alaska small

hydropower projects (§ 215).

Subtitle B—Expediting New Energy Efficiency Standards

Subtitle B would establish, by statute, new energy efficiency standards for residential boilers (§

227), electric motors (§ 229), and some home appliances (§ 230).12 DOE would be directed to set

standards by rulemaking for furnace fans (§ 223). Also, DOE would be allowed to set standards

for multiple components (§ 221) and regional standards for heating and cooling equipment (§

222). Further, this subtitle would authorize R&D on improved efficiency for appliances and

buildings in cold climates (§ 231) and provide incentives for the manufacture of high-efficiency

consumer products (§ 232). Other provisions would guide expedited rulemakings (§ 224), clarify

limits to federal preemption of state standards (§ 225), and require Energy Guide labels for

several types of consumer electronic products (§ 226). Also, the Committee markup added a

provision that would direct DOE to establish a program that supports, develops, and promotes the

use of new technologies to improve energy efficiency in materials manufacturing and energyintensive industries (§ 233).

Subtitle C—Promoting High Efficiency Vehicles, Advanced Batteries, and

Energy Storage

Subtitle C would promote high-efficiency vehicles, advanced batteries, and energy storage. DOE

would be authorized to fund an R&D program on light-weight materials (§ 241). A loan

guarantees program would be created for facilities that manufacture fuel-efficient vehicles (§

242). Funding awards for qualified investments would be authorized to refurbish manufacturing

facilities that produce advanced technology vehicles (§ 243). A 10-year R&D program would be

authorized to support U.S. competitiveness in global energy storage markets, and a five-year

R&D program would be authorized for electric drive technologies (§ 244). Also, the Committee

Identical provisions for boilers, motors, and home appliances appear in S. 1101 and H.R. 2083.

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markup added a provision that would direct DOE to establish a competitive grant program for

state, regional, and local government entities to demonstrate electric drive vehicles. DOE would

also be required to establish a program to deploy technologies that would achieve near-term oil

savings in the transportation sector (§ 245).

Subtitle D—Setting Energy Efficiency Goals

Subtitle D would set several energy efficiency goals that include reducing gasoline use 45% by

2030 (§ 251) and improving energy productivity by 2.5% in 2012 and each year thereafter

through 2030 (§ 252).13 Also, DOE would be authorized to conduct a four-year national media

campaign to educate consumers to save energy and reduce oil use (§ 253), and federal agencies

would be authorized to carry out programs for demonstration and use of advanced electricity

transmission and distribution technologies (§ 254).

Subtitle E—Promoting Federal Leadership in Energy Efficiency and

Renewable Energy

Subtitle E would promote federal leadership in energy efficiency and renewable energy. Federal

and state fleets would be required to reduce petroleum use 30% by 2016 (§ 261). The renewable

energy share of federal energy purchases would increase to 15% by 2015 (§262). The

authorization for federal agencies to use Energy-Saving Performance Contracts (ESPCs) would

be extended permanently (§ 263). Federal buildings would be required to reduce energy use 30%

by 2015 (§ 264). DOE would be directed to identify federal sites for installing combined heat and

power (§ 265). Federal buildings would be required to reduce fossil energy use by 50%,

compared with similar buildings from the past that were not subject to the standard (§ 266). The

Department of Housing and Urban Development (HUD) would be required to update efficiency

standards for all public and assisted housing (§ 267). DOE would be authorized to conduct R&D

and deployment activities that help increase the energy-efficiency of commercial buildings (§

268).

Subtitle F—Assisting State and Local Governments in Energy Efficiency

Subtitle F would improve energy efficiency assistance to state and local governments by

increasing the authorization for the DOE Weatherization program (§ 271), reauthorizing the State

Energy program (§ 272), requiring state utility regulatory commissions to consider federal

standards to promote energy efficiency (§ 273), authorizing the National Renewable Energy

Laboratory (NREL) to provide technical assistance (§ 274), authorizing grants to local

governments (§ 275), authorizing grants to universities for demonstration projects (§ 276),

authorizing workforce training programs (§ 277), and authorizing funds for education programs

to reduce school bus idling (§ 278).

The description of Section 252 on page 14 of the Committee’s report (S.Rept. 110-65) says that “national energy

productivity” would be measured as “gross domestic product (GDP) per unit of energy input.”

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Subtitle G—Marine and Hydrokinetic Renewable Energy Promotion

DOE would be directed to create an R&D program focused on technology that produces

electricity from waves, tides, currents, and ocean thermal differences (§291-292). A report to

Congress would be required. Also, DOE would be directed to establish national ocean energy

research centers at one to six universities (§293).

Title III—Carbon Capture and Storage R&D and Demonstration

Title III would call for large-scale testing of carbon dioxide (CO2) storage in geological

formations, establish competitive funding awards, direct that a national storage capacity

assessment be conducted, and require that the Department of Energy (DOE) demonstrate the use

of large-scale capture technologies at industrial facilities.

Title IV—Cost-Effective and Environmentally Sustainable Public

Buildings

Subtitle A—Public Buildings Cost Reduction

Subtitle A would direct the General Services Administration (GSA) to establish a program to

speed the use of cost-effective energy-efficient lighting equipment and other technologies and

practices (§402). Further, GSA would be required to prepare a five-year plan to replace inefficient

lighting in GSA buildings using available funds. Also, an EPA matching grant program would be

created to help local governments renovate buildings to improve energy efficiency (§403). For

this program, $20 million would be authorized.

Subtitle B—Photovoltaic System for DOE Headquarters

GSA would be directed to use up to $30 million would be authorized from unobligated balances

of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the

DOE headquarters building in Washington, D.C.

Subtitle C—High Performance Green Buildings

Part 1 would direct GSA to establish an Office of High-Performance Green Buildings and a Green

Building Advisory Committee to support R&D and outreach to spur the federal government

toward the construction of high performance green buildings. A green building information

clearinghouse would be established. The Office would be directed to establish a standard for

certification of green buildings. A report to Congress would be required.

Part 2 would create a program for Healthy High-Performance Schools that aims to involve states,

local governments, and school systems building green schools. EPA, in consultation with the

Department of Education, would be allowed to provide grants to state agencies to provide

technical assistance and help with the development of state plans for school building design. Also,

EPA would be directed to develop model voluntary guidelines for school site selection. In

addition to other environmental aspects, the grants and guidelines would have a focus on energy

efficiency, natural daylighting, and other energy-related features.

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Part 3 on Strengthening Federal Leadership would direct the Office of Green Buildings to

identify incentives that would encourage the use of green buildings in federal operations.

Incentives could include recognition awards and agency retention of cost savings (§451). The

Office of Federal Procurement Policy would be directed to revise acquisition regulations to

require that acquisition, construction, and major renovations employ green design and to give

preference in leasing to buildings that are energy-efficient (§452). The Comptroller General

would be directed to conduct an audit of the implementation of this Subtitle and submit a report

to Congress that describes the findings (§453). Strategies for addressing storm water runoff would

be required for federal facility development projects (§454).

Part 4 would call for a Demonstration Project. The Office of Green Buildings would be directed

to prepare guidelines for the implementation of a federal demonstration project that would

contribute to the research goals of the Office. Funding would be authorized at $10 million per

year over five years.

Title V—Corporate Average Fuel Economy Standards

Title V, the Ten-in-Ten Fuel Economy Act of 2007, would require that the corporate average fuel

economy standard (CAFE) for new cars and light trucks be increased to 35 miles per gallon

(mpg) by 2020 and require a 4% annual increase for 10 years thereafter. Starting in 2011, a 4%

annual increase would also be required for medium- and heavy-duty trucks.

Title VI—Price Gouging

Title VI would criminalize price gouging in fuel markets during an energy emergency.

Title VII—Energy Diplomacy and Security

Title VII would express the sense of Congress on several aspects of international energy

cooperation, with a special emphasis on increasing the use of sustainable energy sources. The

Department of State would be encouraged to establish four new types of administrative

mechanisms. One type of mechanism would be strategic energy partnerships with the

governments of major energy producers and consumers, and with governments of other countries.

A second type would be petroleum crisis response mechanisms with the governments of China

and India. A third would be a Western Hemisphere energy crisis response mechanism. A fourth

would be a regionally-based ministerial Hemisphere Energy Cooperation Forum. Also, the

Department of State would be encouraged to approach other governments in the Western

Hemisphere to cooperate in establishing a “Hemisphere Energy Industry Group” of industry and

government representatives, which would be coordinated by the U.S. government.

The President would be encouraged to introduce the topic of “the merits of establishing an

international energy program application procedure” for discussion at the Governing Board of the

International Energy Agency. Also, the bill would establish a “Hemisphere Energy Cooperation

Forum,” that would be encouraged to implement an Energy Crisis Initiative, an Energy

Sustainability Initiative, and an Energy for Development Initiative.

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Title VIII—Miscellaneous

Title VIII, Miscellaneous, would require that DOE study and report on the laws and regulations

that affect the siting of privately owned electric distribution wires on and across public rights-ofway.

Senate Amendment 1704 (Energy Tax Provisions)

A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the

proposed substitute to H.R. 6. The proposed tax package amendment included incentives for

renewable energy and energy efficiency as well as oil and natural gas revenue offset provisions.

The proposed revenue offsets were similar to, but more extensive than, the offsets proposed in

Title XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a

cloture motion to limit debate.14

Part I—Advanced Electricity Infrastructure

Part I would have extended the PTC for 5 years and expanded it to include ocean thermal and

hydrokinetic (wave, tide, and current) energy. Also, it would have extended the 30% business

energy tax credit for solar and fuel cell equipment for 8 years and repealed the public utility

exclusion. It would have authorized $3.6 billion of CREBs, and raised the cap on the tax credit

for residential solar and fuel cell equipment. A new credit would have been created for residential

wind equipment. Two incentives for electric transmission would have been established. Also, Part

I would have improved depreciation for energy management devices.

Part II—Carbon Dioxide Sequestration

Part II would have created three tax incentives for carbon dioxide sequestration.

Part III—Domestic Fuel Security

Part III would have provided several tax incentives for production of cellulosic ethanol and

certain other biofuels.

Part IV—Advanced Technology Vehicles

Part IV would have created a credit for plug-in hybrids, capped at $7,500 to $15,000, depending

on vehicle weight. The credit for alternative-fueled vehicles would have been extended for 2

years. An exclusion from heavy truck tax would have been established for idling reduction units

and certain truck insulation measures.

For more details, see CRS Report RL33578, Energy Tax Policy: History and Current Issues, by (name redacted).

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Part V—Conservation and Energy Efficiency

Part V would have extended the existing home efficiency retrofit credit for 2 years, the new home

credit for 3 years, the commercial building credit for 5 years, and the home appliance credit

would have been extended and expanded.

Part VI—Accountability Studies

Part VI would have called for a cost-benefit study of pollution reduction, a study of the effect of

tax benefits for prices on consumer goods, and a study of tax-credit bonds.

Part VII—Other Provisions

Subtitle A on Energy Advancement and Investment had two subparts. Subpart A would have

established certain tax measures for timber property. Subpart B would have set out certain tax

measures for coal. Subtitle B on Revenue Raising Provisions included several tax modifications

that aimed to reduce certain subsidies for oil and natural gas development. The resultant funds

would have been used to offset the costs associated with the new tax incentives for energy

efficiency and renewable energy.

Clean Renewable Energy Incentives Act (S. 1531)

The proposed Clean Renewable Energy and Economic Development Incentives Act of 2007 (S.

1531) is an omnibus energy tax policy bill that consists mainly of provisions for renewable

energy. It has two titles. Title I proposes Tax Incentives for Energy Conservation and Exploration.

Title II proposes Investment Tax Credits with Respect to Solar Energy Property and

Manufacturing.

On the Senate floor, S.Amdt. 1704 would have added a new tax title that included some of the

provisions for renewables and energy efficiency in S. 1531. The amendment failed to achieve

cloture by a vote of 57-36, and was subsequently ruled non-germane.

Title I—Tax Incentives for Energy Conservation and Exploration

Title I of S. 1531 would extend three existing tax incentives and establish six new ones. 15 Section

101 would extend the renewable energy electricity production tax credit (PTC) for 10 years, to

the end of 2018.16 For certain large facilities, such as geothermal and biomass power plants, credit

eligibility could be extended for up to two years after the placed-in-service deadline.17 Section

102 would extend the clean renewable energy bonds (CREBs) for 10 years.18 The national total

The extensions are in §101, §102, and §106. The new incentives are in §103, §104, §105, §107, §108,and §109.

The PTC provision of the Tax Relief Act of 2006 (P.L. 109-432, §201) will expire at the end of 2008. The PTC was

previously set by the Energy Policy Act (EPACT, §1301).

To qualify under this provision, such plants would have to fulfill two conditions. First, the plant would have to be

under construction at the time that the placed-in-service deadline occurs. Second, the plant would have to be

operational, producing and selling electricity, within two years after the deadline.

The CREBs provision of the Tax Relief Act (§202) will expire at the end of 2008. CREBs were created by EPACT

(continued...)

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bond limit would be $1.2 billion per year for 2007 through 2008 and $1.0 billion per year for

2009 through 2018. Section 103 would establish a tax credit bond for water conservation. Section

104 would create a 10% investment tax credit for geothermal exploration. For residential

installations of small wind equipment, Section 105 would establish a 30% investment tax credit,

with a limit of $1,000 per kilowatt (kw). Section 106 would extend for five years the investment

tax credit for the construction of new energy efficient homes.19 Section 107 would create a 20%

investment tax credit for manufacturing equipment used to produce advanced batteries. Section

108 would establish renewable school energy bonds, with a national bond limit of $50 million in

2008, $100 million in 2009, and $150 million in 2010. Under Section 109, bonds would be issued

to finance new renewable energy facilities, including equipment that uses tidal, wave, current,

and ocean thermal energy.

Title II—Investment Tax Credit with Respect to Solar Energy

Property and Manufacturing

Title II of S. 1531 would permanently extend two tax incentives for solar energy equipment and

establish three new incentives for solar equipment.20

Subtitle A—Solar Energy Property

Section 201 would extend permanently the 30% value of the investment tax credit for business

installations of solar equipment.21 In Section 202, the investment tax credit for solar (30%) and

geothermal (10%) equipment would be made available to public utilities. Under Section 203, the

30% residential energy efficiency investment tax credit would be extended permanently.22

Further, the cap would be raised to $3,000/kw for solar electric equipment, $2,000 for solar

heating and cooling equipment, and $500 for fuel cells. Section 204 would make certain solar

equipment eligible for a three-year accelerated depreciation period.

Subtitle B—Promotion of Solar Manufacturing in the United States

Section 211 would establish a 30% investment tax credit for facilities that manufacture solar

energy equipment.

(For more discussion of the provisions in this bill see CRS Report RL33578, Energy Tax Policy:

History and Current Issues.)

(...continued)

(§1303).

The new energy efficient new homes credit in the Tax Relief Act (§205) will expire at the end of 2008. The new

homes credit was created by EPACT (§1332).

The credit extensions are in §201 and §203. The new incentives are in §202, §204, and §211.

The 30% value of the business solar investment tax credit in the Tax Relief Act (§207) will revert back to 10% at the

end of 2008. The 30% value of this credit was established by EPACT (§1337).

The residential energy efficiency credit in the Tax Relief Act (§206) will expire at the end of 2008. This credit was

created by EPACT (§1335).

Congressional Research Service

Omnibus Energy Efficiency and Renewable Energy Legislation

Author Contact Information

(name redacted)

Specialist in Energy Policy

[redacted]@crs.loc.gov, 7-....

Congressional Research Service

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