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109th Congress Energy Bill Comparison Chart (8-3-2005)


Congress has been working on comprehensive energy legislation since the beginning of President Bush's first term in 2001. After failing in both the 107th and 108th sessions to draft a successful bill, Congress appears on track to pass legislation this term. However, several major differences between the House and the Senate versions will need to be resolved in a conference committee before the legislation is sent to the President's desk. The chart below compares the two energy bills as passed by the House and Senate.

The House passed its original version of the energy bill (H.R.6) by a 249-183 vote on April 21st, 2005. The Senate passed its original version (S.10) by a 85-12 vote on June 28, 2005.

The House passed the final version of the energy bill by a 275-156 vote on July 28th, 2005. The Senate passed the final version by a 74-26 vote on July 29th, 2005.

For more information about the energy policy debate, see AGI's Energy Policy Overview.

SECTION
HOUSE VERSION
SENATE VERSION
FINAL VERSION

Arctic National Wildlife Refuge (ANWR)

-- Authorizes oil development in ANWR but limits coastal plain surface footprint to 2,000 acres.

-- No provision in the bill, but ANWR drilling authorization will likely be addressed through the budget reconciliation process.

-- Final bill does not mention ANWR.
-- Drilling authorization is still expected to be included in a filibuster-proof budget reconciliation bill later this year.


CAFE/Fuel Economy Standards

-- Directs National Highway Traffic Safety Administration (NHTSA) initiate a study on the feasibility on "reducing by model year 2014, by a significant percentage, the amount of fuel consumed by automobiles."
-- Directs the EPA to update fuel economy testing procedures

-- Directs NHTSA to conduct a study of the "feasibility and effects" of reducing the amount of gasoline used by automobiles by 2012.
-- Directs the president to take appropriate action to reduce oil consumption by 1 million barrels per day from the approximately 25 million barrels per day projected for 2015 in the Energy Information Administration's Annual Energy Outlook 2005. Current consumption is nearly 21 million barrels per day.

-- Includes language directing NHTSA to conduct a fuel economy study by 2014.
-- Amendments calling for increased CAFE standards did not pass in conference.
-- Includes original House language directing the EPA to update fuel economy testing procedures.
-- Does not include original Senate language calling for a 1 million barrel reduction in oil consumption from 2015 levels.


Climate Change

-- No provisions.

-- Creates a climate change technology program at the Department of Energy that will lead the government's research efforts.
-- Authorizes direct loans, loan guarantees and other subsidies for U.S. and international technologies.
-- Adopted a "sense of the Senate" resolution that calls on Congress to "enact a comprehensive and effective national program of mandatory, market-based limits on emissions of greenhouse gases that slow, stop and reverse the growth of such emissions."

-- Includes original Senate language that creates a climate change technology program and authorizes direct loans, loan guarantees and other subsidies for U.S. and international technologies.

 


Coal

-- Authorizes $200 million per year for the President's Clean Coal Power Initiative through 2014, with at least 60% of the funding going to coal gasification projects. Total is $1.8 billion.
-- Authorizes $3 billion through 2013 under the Clean Air Coal Program to fund new coal plants and pollution control technologies.
-- Authorizes a 10-year research and development program to develop carbon dioxide capture technologies for pulverized coal power plants.
-- Provides federal loan guarantees for coal gasification and petroleum coke gasification projects.

-- Like the House bill, the Senate bill authorizes $200 million per year for the President's Clean Coal Power Initiative, but it requires at least 80% of funds to go to coal gasification projects and only authorizes spending through 2012.
-- Authorizes $400 million for research and development technologies that use coal.
-- Provides federal loan guarantees for coal gasification and petroleum coke gasification projects.

-- Final version authorizes $200 million per year for the President's Clean Coal Power Initiative through 2014, requiring at least 70% of funds to go to advanced combustion technologies, including coal gasification projects.
-- Authorizes $2.5 billion through 2013 under the Clean Air Coal Program to fund new coal plants and pollution control technologies.
-- Includes $1.1 billion over three years for advanced coal research, including gasification, carbon capture, and geologic sequestration.
-- Provides federal loan guarantees for coal gasification and petroleum coke gasification projects.


Ethanol and Renewable Fuels

-- Creates a renewable fuels standard (RFS) of 5 billion gallons by 2012.
-- One gallon of cellulose-derived ethanol or waste-derived ethanol will be counted as 1.5 gallons of renewable fuel under the House plan. If the ethanol is derived from agricultural residue, wood residue, or an agricultural byproduct it will be counted as 2.5 gallons of renewable fuel.
-- Includes a credit system to allow areas without ethanol infrastructure to comply with the RFS.

-- Creates an RFS of 8 billion gallons by 2012.
-- One gallon of cellulose-derived ethanol will be counted as 2.5 gallons under the Senate plan toward meeting the RFS.
-- Exempts California from the ethanol requirement during the summer months.

-- Final bill creates an RFS of 7.5 billion gallons by 2012.
-- One gallon of cellulose-derived or waste-derived ethanol will be counted as 2.5 gallons under the Senate plan toward meeting the RFS.
-- Includes a credit system to allow areas without ethanol infrastructure to comply with the RFS.


Geological and Geophysical Data Preservation

-- Authorizes the National Geological and Geophysical Data Preservation Program Act of 2005 at $30 million annually through 2010. The act is a state-federal cost share program, with federal funds not to exceed 50% for any state data preservation program or facility. Under the act, the USGS will establish an archive of geologic, geophysical, and engineering data, maps, well logs, and samples and a national catalog of this material

-- Authorizes the National Geological and Geophysical Data Preservation Program Act of 2005 at $30 million annually through 2010. The act is a state-federal cost share program, with federal funds not to exceed 50% for any state data preservation program or facility. Under the act, the USGS will establish an archive of geologic, geophysical, and engineering data, maps, well logs, and samples and a national catalog of this material

-- Authorizes the National Geological and Geophysical Data Preservation Program Act of 2005 at $30 million annually through 2010. The act is a state-federal cost share program, with federal funds not to exceed 50% for any state data preservation program or facility. Under the act, the USGS will establish an archive of geologic, geophysical, and engineering data, maps, well logs, and samples and a national catalog of this material


Hydrogen

-- Authorizes $4 billion through 2010 for the development of hydrogen vehicles and hydrogen fuel infrastructure.
-- Directs DOE to conduct programs in conjunction with the private sector to address hydrogen production, fuel delivery, vehicle production, and consumer understanding.

-- Authorizes $3.8 billion through 2010 for hydrogen-related research programs.
-- Directs DOE to conduct programs in conjunction with the private sector to address hydrogen production, fuel delivery, vehicle production, and consumer understanding.

-- Final version authorizes $3.7 billion through 2010 for hydrogen-related research programs.
-- Directs DOE to conduct programs in conjunction with the private sector to address hydrogen production, fuel delivery, vehicle production, and consumer understanding.


Liquefied Natural Gas

-- Establishes the Federal Energy Regulatory Commission (FERC) as the lead agency on the siting and licensing of liquefied natural gas (LNG) import terminals.
-- Requires FERC to consult with the states and allows state agencies to inspect the facilities for safety of operations.

-- Establishes FERC as the lead agency on the siting and licensing of LNG import terminals.
-- Emphasizes that states retain their authority over permitting at the sites under the Clean Water Act, Coastal Zone Management Act and the federal Water Pollution Control Act.

-- Follows original Senate language establishing FERC as the lead agency on the siting and licensing of LNG import terminals.
-- Includes emphasis that states retain their authority over permitting at the sites under the Clean Water Act, Coastal Zone Management Act and the federal Water Pollution Control Act.


MTBE

-- No outright ban on the gasoline additive and groundwater contaminant methyl tertiary butyl ether (MTBE).
-- Protects MTBE produces from defective product liability lawsuits. The exemption would also apply to ethanol producers.
-- Authorizes transition package of up to $250 million a year in grants from 2005 to 2012 for the MTBE industry.

-- No provisions.

-- Includes no provisions related to producer liability protection or a cleanup trust fund.
-- Eliminates oxygenate content requirement for reformulated gasoline.


Nuclear Energy

-- Extends Price Anderson Act for 20 years.
-- Provides $2.25 billion for nuclear energy research programs over five years.
-- Authorizes $1.25 billion through 2015 for the Next Generation Nuclear Plant project.
-- Directs DOE to create a disposal facility plan for greater than Class C wastes.
-- No nuclear production tax credit.
-- Includes nuclear power plant security provisions.

-- Extends Price Anderson Act for 20 years.
-- Authorizes $1.18 billion over three years for nuclear energy research programs, plus additional funds for nuclear infrastructure support.
-- Authorizes $1.25 billion through 2015 for the Next Generation Nuclear Plant project.
-- Directs DOE to create a disposal facility plan for greater than Class C wastes.
-- Provides a production tax credit for nuclear power from advanced reactors.
-- Does not include nuclear power plant security provisions, which are being handled through separate legislation.
-- Makes nuclear power elegible for loan guarantees up to 80 percent of facility costs under the bill's "incentives for innovative technologies" program.

-- Extends Price Anderson Act for 20 years.
-- Authorizes $1.6 billion over three years for nuclear energy research, infrastructure, and facilities.
-- Authorizes $1.25 billion through 2015 for the Next Generation Nuclear Plant project.
-- Authorizes $2 billion in construction delay support for new nuclear plant projects.
-- Directs DOE to create a disposal facility plan for greater than Class C wastes.
-- Provides a production tax credit for nuclear power from advanced reactors.
-- Includes nuclear power plant security provisions.
-- Makes nuclear power elegible for loan guarantees up to 80 percent of facility costs under the bill's "incentives for innovative technologies" program.


Oil and Gas


-- Authorizes a $2 billion research and development program over 10 years for ultra-deepwater and unconventional oil paid for by "excess" federal royalties.
-- Calls for faster and more coordinated federal efforts for energy permitting.
-- Includes royalty relief for deepwater and deep shelf projects.
-- Includes royalty relief for onshore deep gas wells and gas hydrates.
-- Limits National Environmental Policy Act review on federal lands for geophysical exploration that does not require road building.
-- Directs federal officials to repurchase leases in circumstances under which exploration or development of the lease is not allowed.
-- Instructs the Department of the Interior to write rules for commercial oil shale leasing by the end of 2006.
-- Exempts drill site construction from Clean Water Act stormwater runoff requirements.
-- Exempts hydraulic fracturing from Safe Drinking Water Act requirements.


-- Authorizes a three-year $1.8 billion fossil energy research and development program that includes oil and gas technologies.
-- Authorizes $165 million over five years for methane hydrate research and development.
-- Calls for faster and more coordinated federal efforts for energy permitting.
-- Includes royalty relief for deepwater and deep shelf projects.
-- Includes reduced royalty payments for low-production wells.


-- Authorizes a three-year $1.9 billion fossil energy research and development program that includes oil and gas technologies.
-- Authorizes $1.5 billion over 10 years for an ultra-deepwater research and development program.
-- Authorizes $165 million over five years for methane hydrate research and development.
-- Includes royalty relief for deepwater projects, deep shelf projects, methane hydrate gas projects, low-production wells, and carbon dioxide flood projects.
-- Calls for faster and more coordinated federal efforts for energy permitting.
-- Includes direction for creation of oil shale leasing program.
-- Exempts drill site construction from Clean Water Act stormwater runoff requirements.
-- Exempts hydraulic fracturing from Safe Drinking Water Act requirements.
-- Permanently authorizes the Strategic Petroleum Reserve and directs the DOE Secretary to fill the reserve to 1 billion barrels.


Outer Continental Shelf

-- No inventory provisions.
-- Authorizes $50 million per year of coastal protection funding for states with offshore production.

-- Directs the Interior Department to conduct an inventory of offshore oil and gas resources.
-- Gives $1 billion of direct funding over four years for coastal protection for states with offshore production.

-- Follows the Senate bill's language, directing the Interior Department to conduct an inventory of offshore oil and gas resources and giving $1 billion of direct funding over four years for coastal protection for states with offshore production.
-- However, includes no new funding authorization for an OCS inventory, meaning all reports will be based on existing data unless new funds are allocated.

Renewable Energy
and Energy Efficiency

-- No renewable portfolio standard (RPS).
-- Includes a federal renewable purchase requirement that at least 7.5% of federal energy purchases come from renewable sources in 2013, with lower targets beginning in 2007.
-- Does not extend renewable energy tax incentives.
-- Extends renewable energy production incentives for public and nonprofit utilities.
-- Authorizes almost $4 billion over five years for energy efficiency research and development for buildings, vehicles and industries.
-- Authorizes almost $3 billion over five years for renewable energy research and development.
-- Includes appliance efficiency standards.
-- Authorizes $50 million over four years for photovoltaic systems in federal buildings.
-- Includes provisions for federal building efficiency and purchase of efficient products.
-- Includes funding to states for energy efficiency programs and energy efficiency appliance rebates.
-- Extends daylight savings time by two months.

-- Includes an RPS requiring electric utilities to produce 10% of their electricity from renewable sources by 2020. Sets up a trading scheme to allow companies that have not met the standard to buy credits from companies with excess renewable capacity.
-- Includes a federal renewable purchase requirement similar to the House plan.
-- Extends renewable energy tax incentives
-- Extends renewable energy production incentives for public and nonprofit utilities.
-- Authorizes $2.6 billion over three years for energy efficiency research and development.
-- Authorizes almost $2 billion over three years for renewable energy research and development.
-- Includes more agressive appliance efficiency standards than the House.
-- Includes provisions for federal building efficiency and purchase of efficient products.
-- Includes funding to states for energy efficiency programs and energy efficiency appliance rebates.
-- Loan guarantees for renewable and energy efficient technologies under the bill's "Incentives for Innovative Technologies".

-- RPS standard dropped in conference.
-- Includes a federal renewable purchase requirement as in both the original House and Senate bills.
-- Extends renewable energy tax incentives.
-- Extends renewable energy production incentives for public and nonprofit utilities.
-- Authorizes $2.6 billion over three years for energy efficiency research and development.
-- Authorizes almost $2 billion over three years for renewable energy research and development.
-- Includes funding to states for energy efficiency programs and energy efficiency appliance rebates.
-- Includes appliance efficiency standards that are a compromise between original House and Senate versions.
-- Includes provisions for federal building efficiency and purchase of efficient products.
-- Includes funding to states for energy efficiency programs and energy efficiency appliance rebates.
-- Includes original Senate provision for loan guarantees for renewable and energy efficient technologies.
-- Extends daylight savings time by one month.


Taxes

-- Includes $8 billion in tax incentives over 10 years, largely targeting oil and natural gas production, renewable energy, nuclear power and clean coal.

Specific Provisions Include:
-- Natural gas distribution lines: $1.593 billion
-- Electric transmission property: $1.529 billion
-- Pollution control facilities in power plants: $1.402 billion
-- Nonconventional fuel credit: $88 million
-- Nuclear decommissioning costs: $1.313 billion
-- Residential energy efficient property: $18 million
-- Geological and geophysical expenditures: $982 million
-- Advanced clean burn vehicle credit: $73 million
-- Home energy efficiency: $391 million

-- Includes $18.4 billion in tax incentives over 10 years with almost $4.4 billion in revenue generating offsets.

-- Electricity Infrastructure (including renewables, clean coal, and advanced nuclear): $8.314 billion
-- Domestic Fossil Fuel Security (including CO2 floods and refinery construction) $2.761 billion
-- Conservation and Energy Efficiency: $3.792 billion
-- Alternative Motor Vehicles and Fuels Incentives: $2.583 billion
-- Additional Energy Tax Incentives (including biodiesel production and underground natural gas storage): $971 million
-- Provisions that Raise Revenue: +$4.366 billion

-- Final bill includes $14.6 billion in tax incentives over 10 years with $3.1 billion in revenue generating offsets.

-- Clean Coal: $2.9 billion
-- Renewable Energy: $2.9 billion
-- Advanced Nuclear: $1.3 billion
-- Electricity Infrastructure: $3.1 billion
-- Domestic Fossil Fuels: $2.6 billion
-- Conservation and Energy Efficiency: $1.7 billion
-- Provisions that Raise Revenue: $3.1 billion


Chart prepared by John Vermylen, 2005 AGI/AIPG Summer Intern.

Source: Environment & Energy Daily; Energy Bill Text, S.10 and H.R.6; Taxpayers for Common Sense.

Please send any comments or requests for information to the AGI Government Affairs Program.

Updated August 3rd, 2005


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