Omnibus Energy Legislation, 109th Congress: Side-by-Side Assessment of House and Senate Versions of H.R. 6

CRS Report for Congress
th
Omnibus Energy Legislation, 109 Congress:
Side-by-Side Assessment of House and Senate
Versions of H.R. 6
July 25, 2005
Mark Holt and Carol Glover
Coordinators
Resources, Science, and Industry Division


Congressional Research Service ˜ The Library of Congress

Omnibus Energy Legislation, 109th Congress:
Side-by-Side Assessment of House and Senate
Versions of H.R. 6
Summary
The House approved an omnibus energy bill (H.R. 6) on April 21, 2005, that
would open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing,
substantially change oversight of electric utilities, increase the use of alternative
motor fuels, provide $8.1 billion in energy tax incentives, and authorize numerous
energy R&D programs. The Senate passed its version of H.R. 6 on June 28 without
ANWR provisions but with $14.1 billion in tax incentives — including a nuclear
energy production credit — and provisions on global climate change. Highlights of
the bills include:
Electricity. Both the House and the Senate versions of the bill would repeal the
Public Utility Holding Company Act (PUHCA), but the Senate bill has provisions
for more stringent oversight of utility mergers than the House version. Standard
market design (SMD) would be remanded to the Federal Energy Regulatory
Commission (FERC) by the House bill, while the Senate version would terminate the
rulemaking altogether.
Renewable Energy. An increase in renewable fuel and ethanol consumption to
5 billion gallons annually by 2012 would be mandated by the House bill, as opposed
to 8 billion gallons in the Senate bill. The Senate bill includes a “renewable portfolio
standard” (RPS) — rejected in the House — requiring utilities to generate at least

10% of their electricity from renewable energy sources by 2020.


MTBE. Methyl tertiary butyl ether (MTBE), a gasoline additive widely used to
meet Clean Air Act requirements, has caused water contamination. The House and
Senate bills would phase out the use of MTBE with some possible exceptions and
provide funds for MTBE cleanup, with some differences. The House version would
provide protection for fuel producers and blenders of renewable fuels and MTBE
from defective product lawsuits, while the Senate bill would cover renewable fuels
but not MTBE.
Energy Taxes. The House bill would reduce energy taxes by about $8.1 billion
over 11 years, as compared with $14.1 billion in the Senate version. A nuclear
energy production tax credit is included among the Senate incentives.
ANWR. The House-passed bill would authorize oil and gas exploration,
development, and production in ANWR, with a 2,000-acre limit on production and
support facilities. No ANWR provisions are included in the Senate version.
Energy Production on Federal Lands. Both bills include numerous provisions
to increase energy production on federal lands. The Senate version of H.R. 6 would
require an inventory of oil and natural gas resources on the Outer Continental Shelf
(OCS), while the House version would not.
This report will not be updated.



Contents
In troduction ......................................................1
Major Provisions..............................................2
Electricity Regulation......................................2
Renewable Fuel Standard and MTBE..........................3
Energy Taxes.............................................4
Nuclear Energy............................................4
Renewable Portfolio Standard and Energy Efficiency..............5
Arctic National Wildlife Refuge..............................6
Domestic Energy Production.................................7
Hydrogen and Fuel Cells....................................7
Overview of House and Senate Versions............................7
Organization of Report.........................................9
Energy Efficiency.................................................10
Federal Programs.............................................10
Energy Assistance and State Programs............................13
Energy-Efficient Products......................................16
Public Housing...............................................20
Renewable Energy................................................22
General Provisions............................................22
Hydroelectric ................................................28
Oil and Gas.....................................................31
Petroleum Reserve and Home Heating Oil.........................31
Production Incentives..........................................33
Access to Federal Land........................................38
Refining Revitalization........................................39
Coal ...........................................................43
Clean Coal Power Initiative.....................................43
Clean Power Projects..........................................44
Coal and Related Programs.....................................45
Indian Energy....................................................46
Nuclear Matters..................................................48
Price-Anderson Act Amendments................................48
General Nuclear Matters.......................................50
Advanced Reactor Project......................................56
Nuclear Security..............................................57
Vehicles and Fuels................................................60
Existing Programs............................................60
Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses............63
Clean School Buses...........................................65
Miscellaneous ...............................................67
Automobile Efficiency.........................................70
Hydrogen .......................................................72
Research and Development.........................................75
Science Programs.............................................76
Research Administration and Operations..........................82
Energy Efficiency — Vehicles, Buildings, and Industries..............88
Energy Efficiency — Distributed Energy and Electric Energy Systems...92
Renewable Energy............................................95



Fossil Energy — Research Programs.............................105
Fossil Energy — Ultra-Deepwater and Unconventional Natural Gas
and Other Petroleum Resources.............................109
Department of Energy Management.................................111
Electricity ......................................................113
Reliability Standards.........................................113
Transmission Infrastructure Modernization........................114
Transmission Operation Improvements...........................119
Transmission Rate Reform....................................123
Amendments to PURPA......................................124
Repeal of PUHCA...........................................127
Market Transparency, Enforcement, and Consumer Protection ........132
Merger Reform..............................................138
Definitions .................................................140
Economic Dispatch and Other Electricity.........................140
Energy Tax Incentives............................................143
Energy Infrastructure Tax Incentives.............................143
Conservation and Energy Efficiency Provisions....................148
Alternative Minimum Tax Relief................................157
Other Fossil Fuels Incentives — Oil and Gas......................158
Other Fossil Fuels Incentives — Coal............................161
Renewable Energy Supply.....................................162
General Tax Incentives.......................................163
Tax Increases...............................................164
Non-Tax Provisions..........................................167
Miscellaneous ..................................................168
Other Provisions.............................................168
Ethanol and Motor Fuels..........................................173
General Provisions...........................................173
Underground Storage Tank Compliance..........................182
Boutique Fuels..............................................185
Studies ........................................................185
Renewable Energy — Resources....................................193
Geothermal Energy..............................................194
Hydropower — Resources.........................................199
Oil and Gas — Resources.........................................200
Production Incentives.........................................200
Access to Federal Lands.......................................207
Naval Petroleum Reserves.....................................211
Miscellaneous Provisions......................................212
Coal — Resources...............................................214
Energy Development in Arctic Refuge...............................216
Set America Free (SAFE).........................................227
Grand Canyon Hydrogen-Powered Transportation Demonstration..........228
Additional Provisions............................................228
Studies ........................................................229
Incentives for Innovative Technologies...............................232
Climate Change.................................................236
National Climate Change Technology Deployment.................236
Climate Change Technology Deployment in Developing Countries.....238
Index of Senate Sections..........................................240



Appendix B: Oil and Gas Exploration and Production Defined
(Sec. 328, House Bill)........................................245
Appendix C: Clean Air Coal Program (Sec. 441 House, Sec. 956 Senate)....246
Appendix D: Price-Anderson Nuclear Liability Coverage (Secs. 601-612) ...247
Appendix E: Electric Reliability Standards (Sec. 1211)..................248
Appendix F: Standard Market Design (House Sec. 1235, Senate Sec. 1234)..250
Appendix G: Cogeneration and Small Power Production Purchase
and Sale Requirements (Sec. 1253)..............................252
Appendix H: Repeal of the Public Utility Holding Company Act of 1935
(House Sec. 1263, Senate Sec. 1273) ............................253
Appendix I: Continuation of Transmission Security Order (Sec. 1441)......255
Appendix J: Deadline for Decision on Appeals under the Coastal Zone
Management Act (Sec. 2013)...................................256
Appendix K: Domestic Offshore Energy Reinvestment (Sec. 2053)........257



Omnibus Energy Legislation,
109th Congress: Side-by-Side Assessment
of House and Senate Versions of H.R. 6
Introduction
Since the Arab oil embargo in 1973-1974, Congress has periodically taken up
energy policy legislation with a comprehensive scope — often spurred by the price
of oil and U.S. dependence upon imported oil. The price of crude oil began to rise
in 2003 — exceeding $60/barrel (bbl) in early July 2005 — setting much of the
context for renewed debate over omnibus energy legislation in the 109th Congress.
National and world demand for oil continues to grow. However, domestic oil
production in the United States continues to decline. As a consequence, the gap
between U.S. production and consumption has had to be covered by increased oil
imports. These imports, roughly 6 million barrels per day (mbd) after the Arab oil
embargo, now exceed 10 mbd to satisfy total U.S. oil consumption of nearly 21 mbd.1
Addressing dependence on imported oil raises a number of issues touching on
both demand and consumption of fossil fuels. Chief among these are the production
of additional fossil fuels, development of alternative energy sources, and
conservation and energy efficiency. Energy infrastructure has also been a growing
issue, including the oil refining and distribution sector, and electricity transmission,
reliability, and regulation. Increased use of domestic coal and reassessment of many
issues associated with nuclear energy have drawn attention as well.
Developing a comprehensive approach to energy policy that balances economic,
security, and environmental issues — as well as competing regional priorities in the
United States — is an enormous challenge for policymakers. Keeping a clear eye on
distinguishing between short- and long-term policies is also difficult but important
in keeping expectations realistic for what comprehensive legislation can achieve.
In the 109th Congress, the House approved an omnibus energy bill (H.R. 6) on
April 21, 2005, that would open the Arctic National Wildlife Refuge (ANWR) to oil
and gas leasing, substantially change oversight of electric utilities, increase the use
of alternative motor fuels, provide $8.1 billion in energy tax incentives, extend the
nuclear accident liability system, and authorize numerous energy R&D programs.
The Senate passed its version of H.R. 6 on June 28 without ANWR provisions but
including $14.1 billion in tax incentives and provisions on global climate change.


1 U.S. Department of Energy, Energy Information Administration, at [http://www.eia.doe.
gov/ pub/oil_gas/petroleum/ data_publications/weekly_petroleum_s t a t u s _ r e p o r t / c u r r e n t /pdf/
tableh1.pdf].

The two versions of the bill contain many provisions from the conference report on
an omnibus energy bill (also numbered H.R. 6) in the 108th Congress that was
blocked by a Senate filibuster.
The House- and Senate-passed bills in the 109th Congress would mandate
increasing levels of ethanol production through 2012 but allow regions to opt out
under certain conditions. Use of methyl tertiary butyl ether (MTBE) as a domestic
gasoline additive would be phased out, but states could authorize continued use and
under the House bill the President could void the ban. Producers of MTBE and
renewable fuels would be granted protection (a “safe harbor”) from product liability
lawsuits under the House bill, while only renewable fuels would be covered in the
Senate bill. MTBE liability protection proved highly contentious in the Senate in the

108th Congress.


The Senate bill includes a “renewable portfolio standard” (RPS) — rejected by
the House Energy and Commerce Committee — requiring utilities to generate at least
10% of their electricity from renewable energy sources by 2020. Also, the Senate bill
would establish a credit-based deployment program to encourage technologies to
reduce greenhouse gas intensity and establish programs to deploy technologies in
developing countries. Neither of those provisions is in the House bill.
Provisions are also included in both bills to increase access by energy
developers to federal lands. Several new statutory efficiency standards would be
established for consumer and commercial products and appliances, and other
standards would be set by the Department of Energy (DOE).
Major Provisions
Electricity Regulation. Title XII in the House- and Senate-passed bills
would create an electric reliability organization (ERO) that would enforce mandatory
reliability standards for the bulk-power system. All ERO standards would be
approved by the Federal Energy Regulatory Commission (FERC). Under this title,
the ERO could impose penalties on a user, owner, or operator of the bulk-power
system that violates any FERC-approved reliability standard. This title also
addresses transmission infrastructure issues. The Secretary of Energy would be able
to certify congestion on the transmission lines and issue permits to transmission
owners. Permit holders would be able to petition in U.S. District Court to acquire
rights-of-way for the construction of transmission lines through the exercise of the
right of eminent domain. In the Senate bill, FERC could approve participant funding
for transmission line construction. A provision that would have required FERC to
approve participant funding for new transmission lines was removed in markup by
the House Committee on Energy and Commerce.
Under the House bill, FERC’s Standard Market Design notice of proposed
rulemaking would be remanded. The Senate bill would terminate FERC’s Standard
Market Design notice of proposed rulemaking. Under both Senate- and House-
passed bills, native load service obligations would be clarified, and federal utilities
would be allowed to participate in regional transmission organizations.



Under both bills, the electricity title would repeal the mandatory purchase
requirements under the Public Utility Regulatory Policies Act (PURPA). The Public
Utility Holding Company Act of 1935 (PUHCA) would be repealed. The Federal
Energy Regulatory Commission and state regulatory bodies would be given access
to utility books and records.
FERC would be required to issue rules to establish an electronic system that
provides information about the availability and price of wholesale electric energy and
transmission services under the House version, and could issue such rules under the
Senate version. Under both versions, for electric rates that the Federal Energy
Regulatory Commission finds to be unjust, unreasonable, or unduly discriminatory,
the effective date for refunds would begin at the time of the filing of a complaint with
FERC but not later than five months after filing of a complaint. Criminal and civil
penalties would be increased. Under the House version, the Federal Power Act
would be amended to give FERC review authority for transfer of assets valued in
excess of $10 million. The Senate version would also apply to the purchase, lease,
or acquisition of an existing generating facility that has a value in excess of $10
million and is used to generate electricity for FERC jurisdictional interstate wholesale
sales. In addition to the House requirements, the Senate version would require FERC
to determine that the proposed transaction would not result in harmful cross-
subsidization with a non-utility associate company.
(For additional discussion on these issues, see CRS Report RL32728, Electric
Utility Regulatory Reform: Issues for the 109th Congress; and CRS Report RL32133,
Federal Merger Review Authority.)
Renewable Fuel Standard and MTBE. The House and Senate versions of
H.R. 6 would amend the Clean Air Act to eliminate the requirement that
reformulated gasoline (RFG) contain 2% oxygen to reduce automotive emissions, a
requirement which prompted the widespread use of MTBE and, to a lesser degree,
ethanol. Instead, the bills would establish a new requirement that an increasing
amount of gasoline contain renewable fuels such as ethanol. The House bill would
require that 3.1 billion gallons of renewable fuel be used in 2005, increasing to 5.0
billion gallons by 2012, and the Senate bill would require 8.0 billion gallons by 2012
(compared with 3.4 billion gallons used in 2004). However, concerns have been
raised that this requirement could significantly increase the pump price for gasoline
in some areas.
Because of concerns over drinking water contamination by MTBE (a major
competitor with ethanol), both bills would ban the use of MTBE in motor vehicle
fuel, except in states that specifically authorize its use, not later than December 31,

2014, under the House version and four years after enactment in the Senate version.


The ban has two possible exceptions. First, the Environmental Protection Agency
(EPA) may allow MTBE in motor fuel up to 0.5 percent by volume, in cases that the
Administrator determines to be appropriate; and second, under the House version, the
President may make a determination, not later than June 30, 2014, that the
restrictions on the use of MTBE shall not take place. The House bill would
authorize $2.0 billion and the Senate bill $1.0 billion to assist the conversion of
merchant MTBE production facilities to the production of other fuel additives.
Further, the bills would preserve the reductions in emissions of toxic substances



achieved by the RFG program (although they use different baselines for determining
required reductions).
One of the most controversial provisions in the House version of H.R. 6 is the
establishment of a “safe harbor” from product liability lawsuits for producers of
MTBE and renewable fuels (such as ethanol). The safe harbor provision would
protect anyone in the product chain, from manufacturers down to retailers, from
liability for cleanup of MTBE and renewable fuels or for personal injury or property
damage based on the product being deemed defective. (That legal approach has been
used in California to require refiners to shoulder liability for MTBE cleanup.) The
safe harbor would be retroactive to September 5, 2003. Prior to that date, five
lawsuits had been filed. After that date, at least 150 suits were filed, on behalf of 210
communities in 15 different states. The Senate bill includes the safe harbor provision
for renewable fuels but not MTBE; the Senate safe harbor would not be retroactive.
(For additional information, see CRS Report RL32865, Renewable Fuels and
MTBE: A Comparison of Selected Legislative Initiatives; CRS Report RL30369, Fuel
Ethanol: Background and Public Policy Issues; and CRS Report RL32787, MTBE
in Gasoline: Clean Air and Drinking Water Issues.)
Energy Taxes. After the conference report on H.R. 6 in the 108th Congress
was blocked in the Senate, several of the measure’s energy tax provisions —
estimated at $1.3 billion over 10 years — were included in the Working Families Tax
Relief Act of 2004 (P.L. 108-311), enacted on October 4, 2004. About $5 billion in
additional energy tax incentives over 10 years were part of the American Jobs
Creation Act of 2004 (P.L. 108-357) enacted on October 22, 2004.
Many of the energy tax incentives in H.R. 6 from the 108th Congress that wereth
not enacted in 2004 have been repackaged into the H.R. 6 in the 109 Congress, with
significant differences between the House and Senate versions. First, the Senate bill
would provide net tax reductions of $14.1 billion over 11 years compared with $8.1
billion in the House-passed version. Second, most of this difference is accounted for
by tax cuts for the electricity industry, energy efficiency, and renewable and
alternative fuels. The Senate bill provides absolutely and relatively more tax cuts for
energy efficiency and alternative fuels. The differences in tax cuts for alternative
fuels are particularly striking: $12 billion in the Senate bill vs. $0.6 billion in the
House bill. The Senate bill also provides more tax incentives for energy efficiency
investments than the House bill. The House bill provides much larger tax cuts for the
electricity industry, particularly for electricity infrastructure.
Thus, in a relative sense, the House bill is tilted more toward fossil fuel
production, while the Senate bill’s tax cuts are tilted more to the production of
alternative and renewable fuels and energy conservation. However, the absolute
dollar tax cuts for oil, gas, and coal are also somewhat larger in the Senate bill than
in the House bill ($5.8 billion vs. $4.7 billion).
(For more background, see CRS Issue Brief IB10054, Energy Tax Policy.)
Nuclear Energy. Strong incentives for building new commercial nuclear
power plants are included in the Senate version of H.R. 6, and both the House and



Senate bills would reauthorize the Price-Anderson Act nuclear liability system for 20
years and authorize DOE to build an advanced reactor in Idaho.
The strongest nuclear incentive is the Senate bill’s 1.8-cents/kilowatt-hour tax
credit for electricity produced by nuclear reactors. The credit would be available for
up to 6,000 megawatts of new capacity — the equivalent of about five or six new
reactors — for the first eight years of operation. The nuclear production tax credit
was also included in the energy bill conference report in the 108th Congress, and the
Energy Information Administration concluded then that the credit would provide
sufficient incentives for new commercial reactors to be built.2 The Senate bill would
also authorize loan guarantees for new reactors. Neither of those incentives is
included in the House version.
Reauthorization of the Price-Anderson Act is generally considered to be a
prerequisite for new reactors. Under Price-Anderson, commercial reactor accident
damages are paid through a combination of private-sector insurance and a nuclear
industry self-insurance system. Liability is capped at the maximum coverage
available under the system, currently about $10.7 billion. Even without
reauthorization, existing reactors continue to be covered, but any new ones would
not. Price-Anderson also authorizes the Department of Energy to indemnify its
nuclear contractors. The limit on DOE contractor liability is the same as for
commercial reactors, except when the limit for commercial reactors drops because
of a decline in the number of covered reactors.
Both versions of H.R. 6 would provide a 20-year extension of Price-Anderson
to the end of 2025. The nuclear industry contends that the system has worked well
and should be continued, but opponents charge that Price-Anderson’s liability limits
provide an unwarranted subsidy to nuclear power. The House version of the bill
would also require the Nuclear Regulatory Commission (NRC) to assess nuclear
power plant security and require additional security measures.
(For more information, see CRS Issue Brief IB88090, Nuclear Energy Policy.)
Renewable Portfolio Standard and Energy Efficiency. The Senate
version of H.R. 6 would require retail electricity suppliers (electric utilities, except
for those in Hawaii and that sold less than 4 billion kwh) to obtain a minimum
percentage of their power from a portfolio of new renewable energy resources. The
minimum renewable energy target, or Renewable Portfolio Standard (RPS), would
start at 2.5% in 2008, rise in steps of 2.5% every four years, and level off at 10%
from 2020 to 2030. The House version of H.R. 6 does not have an RPS provision.
Eligible resources for the RPS in the Senate bill would include “new renewable
energy” produced from solar, wind, ocean, and geothermal energy, most forms of
biomass, landfill gas, and incremental hydropower. Also, additional energy above
the average generation in the three preceding years from “existing” (already placed
in service) facilities using solar, wind, ocean, biomass, landfill gas, incremental


2 U.S. Department of Energy, Energy Information Administration, Analysis of Five Selected
Tax Provision of the Conference Energy Bill of 2003, SR/OIAF/2004-01, February 2004.

hydropower, or incremental geothermal energy would be eligible to satisfy the RPS
target. The base for calculating the target production level would exclude power
from existing hydropower and municipal solid waste generation. Thus, states with
a large amount of existing hydropower or municipal solid waste generation would
have a proportionately lower target for new generation. However, there may be a
debate in conference about whether existing nuclear and hydro generation, or some
portion of it, would be eligible to satisfy the RPS target.
Tradable credits would be created, which could be purchased in place of
alternative power sources. The credits would function like those in the Clean Air Act
emission allowance trading system, which has lowered compliance costs for air
pollution regulations. Electricity suppliers could “carry forward” surplus credits for
up to three years. Double credits would be provided for facilities on Indian land and
triple credits would go to distributed generators under 1 megawatt in size. A cost cap
for the credits is set as the lesser of 1.5 cents/kilowatt-hour (kwh) or 200% of the
average market value of the credits. DOE collections from credit sales and penalties
would fund grants to states to promote renewables.
Both versions of H.R. 6 would legislate new energy efficiency standards for
several consumer and commercial products and appliances. For certain other products
and appliances, DOE would be empowered to set new standards. Also, the bill would
provide increased funding authorizations for the DOE weatherization program and
establish a voluntary program to promote energy efficiency in industry.
(For additional information, see CRS Issue Brief IB10020, Energy Efficiency:
Budget, Oil Conservation and Electricity Conservation Issues, and CRS Issue Brief
IB10041, Renewable Energy: Tax Credit, Budget, and Electricity Production Issues.)
Arctic National Wildlife Refuge. The congressional debate over whether
to open ANWR to development has continued for more than 40 years. H.R. 6 as
passed by the House would authorize oil and gas exploration, development, and
production in a portion of ANWR, with a 2,000-acre limit on certain production and
support facilities. The Senate version contains no ANWR provisions.
Development advocates argue that ANWR oil would reduce U.S. energy
markets’ exposure to crises in the Middle East; boost North Slope oil production;
lower oil prices; extend the economic life of the Trans Alaska Pipeline System; and
create many jobs in Alaska and elsewhere in the United States. They maintain that
ANWR oil could be developed with minimal environmental harm, and that the
footprint of development could be limited to a total of 2,000 acres.
Opponents of development in ANWR argue that intrusion on this ecosystem
cannot be justified on any terms; that economically recoverable oil found (if any)
would provide little energy security and could be replaced by cost-effective
alternatives, including conservation; and that job claims are overstated. They also
maintain that the footprint of oil development, despite a provision in the measure to
limit certain facilities to 2,000 acres, would still be scattered in many parcels across
the landscape, and would have a greater impact than is implied by any limit on total
acreage. They also argue that past proposals to limit any footprint have not been



worded so as to apply clearly to the extensive Native lands in the Refuge, which
could be developed if the Arctic Refuge were opened.
(For additional information, see CRS Issue Brief IB10136, The Arctic National
Wildlife Refuge: Controversies for the 109th Congress; and CRS Report RL31115,
Legal Issues Related to Proposed Drilling for Oil and Gas in the Arctic National
Wildlife Refuge and CRS Report RS22143, Oil and Gas Leasing in the Arctic
National Wildlife Refuge (ANWR): the 2,000-Acre Limit.)
Domestic Energy Production. The Department of the Interior (DOI) has
estimated that roughly a quarter of oil resources and less than one-fifth of gas
resources on Indian lands have been developed. Both versions of H.R. 6 would
encourage production on federal lands through royalty reductions for marginal oil and
gas wells on public lands and the outer continental shelf. Provisions are also
included to increase access to federal lands by energy projects — such as drilling
activities, electric transmission lines, and gas pipelines. In addition, the House bill
would prohibit EPA from regulating hydraulic fracturing to protect drinking water
sources.
(For additional information, see CRS Reports RL32873, Environment and
Energy: Selected Issues in H.R. 6, 109th Congress, and RL32262, Selected Legal and
Policy Issues Related to Coalbed Methane Development.)
Hydrogen and Fuel Cells. The House version of H.R. 6 would authorize $4
billion for FY2006-2010 for hydrogen and fuel cell R&D; the Senate version would
authorize $3.3 billion over the same time frame. The bill would also establish a goal
of producing commercial fuel cell vehicles and developing hydrogen infrastructure
by 2020. Critics of the Administration suggest that the hydrogen program is intended
to forestall any attempts to significantly raise vehicle Corporate Average Fuel
Economy (CAFE) standards, and that it relieves the automotive industry of assuming
more initiative in pursuing technological innovations. On the other hand, some
contend that it is appropriate for government to become involved in the development
of technologies that could address national environmental and energy goals but are
too risky to draw private-sector investment.
(For additional information, see CRS Report RS21442, Hydrogen and Fuel Cell
R&D: FreedomCAR and the President’s Hydrogen Fuel Initiative; and CRS Report
RL32196, A Hydrogen Economy and Fuel Cells: An Overview.)
Overview of House and Senate Versions
The House and Senate versions of H.R. 6 generally address similar areas of
energy policy, although there are major differences. For example, only the House bill
would open ANWR to oil and gas activities, and only the Senate version includes
extensive provisions explicitly addressing global climate change. Table 1 provides
a brief comparison.



Table 1. Major Provisions of
House and Senate Energy Bills
P r ovision House Senate
Electricity restructuringChanges regulatoryChanges regulatory
requirements to emphasizerequirements to emphasize
competitive marketcompetitive market
formation.formation. Additional
FERC oversight of
mergers and acquisitions
required.
Arctic National WildlifeOpens ANWR to oil andNo provision.
Refuge (ANWR)gas leasing.
MTBE and renewableProtects MTBE andProtects ethanol producers
fuels liability protectionethanol producers fromfrom liability lawsuits.
(“safe harbor”)product liability lawsuits.
Global climate changeNo specific provisions.Establishes a credit-based
deployment program to
encourage technologies to
reduce greenhouse gas
intensity and establishes
programs to deploy
technologies in
developing countries.
Equipment and applianceLegislates new standardsLegislates new standards
efficiency standardsfor 7 products, calls forfor 15 products, calls for
DOE standards byDOE standards by
rulemaking for 3 products.rulemaking for 4 products.
Nuclear energyExtends Price-AndersonProvides tax credits and
coverage for newloan guarantees for new
commercial reactors andnuclear power plants.
DOE contracts. IncludesExtends Price-Anderson
nuclear security provisions.coverage for new
commercial reactors and
DOE contracts.
Renewable energy contentRequires motor vehicleRequires motor vehicle
in motor vehicle fuelfuel sold in the Unitedfuel sold in the United
States to contain 5 billionStates to contain 8 billion
gallons of ethanol or othergallons of ethanol or other
renewable fuel by 2012.renewable fuel by 2012.
Renewable PortfolioNo provision.Requires electric utilities
Standardto provide minimum
percentages of power
from new renewable
sources.



Organization of Report
The remainder of this report provides a section-by-section summary comparison
of the provisions of H.R. 6 as passed by the House and Senate. The sections are
listed in numerical order as they appear in the House-passed version. Some of the
most controversial sections are discussed in greater detail in a number of appendicies.
Funding authorizations are shown in Tables 2 and 3 at the end of the report.
The following analysts in the CRS Resources, Science, and Industry Division
contributed to this report:
!Amy Abel, electric utilities;
!Anthony Andrews, nuclear security, DOE management;
!Robert Bamberger, energy security;
!Carl Behrens, nuclear nonproliferation;
!Claudia Copeland, Federal Water Pollution Control Act;
!Lynne Corn, ANWR;
!Bernard Gelb, gasoline industry;
!Carol Glover, Native American energy, general authorizations;
!Mark Holt, nuclear energy;
!Marc Humphries, federal energy leasing, coal;
!Larry Kumins, oil and gas;
!Salvatore Lazzari, taxes;
!Jim McCarthy, Clean Air Act, MTBE;
!Dan Morgan, science programs;
!Kyna Powers, hydropower;
!Fred Sissine, conservation and renewable energy;
!Mary Tiemann, underground storage tanks, drinking water;
!Brent Yacobucci, motor fuels, vehicles, hydrogen;
!Jeff Zinn, Coastal Zone Management Act.



CRS-10
Energy Efficiency
al Programs
sion House Senate Comments
ergy and Water SavingSec. 101. The Architect of the CapitolSec. 101. The Architect of the Capitol
ures in Congressionalwould be required to plan and implementwould be required to plan and implement
ildings an energy and water conservationan energy and water conservation
strategy for congressional buildings thatstrategy for congressional buildings that
would be consistent with that required ofwould be consistent with that required of
other federal buildings. An annual reportother federal buildings. An annual
would be required. Up to $2 millionreport would be required.
iki/CRS-RL33006would be authorized. Section 310 of the
g/wLegislative Branch Appropriations Act of
s.or1999 called for the Architect of the
leakCapitol (AOC) to develop an energy
efficiency plan for congressional
://wikib uild ings.
httpergy ManagementSec. 102. The baseline for federal energySec. 102. The baseline for federal energySection 202 of Executive Order 13123 uses
quirements savings would be updated from FY1985savings would be updated from FY1985FY1985 as the baseline for measuring federal
to FY2003 and a new goal of 20%to FY2004 and a new goal of 20%building energy efficiency improvements and calls
reduction would be set for FY2015. Atreduction would be set for FY2015. Byfor a 35% reduction in energy use per gross square
that time, DOE would be directed tothe end of 2013, DOE would be directedfoot by FY2010.


assess progress and set a new goal forto assess progress and set a new goal for
FY2025. Most of the other provisionsFY2015 through FY2024. Standards for
for federal agencies in this Subtitle areexclusion are set, which empower DOE
administrative measures that would helpto exempt, under certain conditions,
agencies achieve the above-describedbuildings for which serve a national
goal.security function or for which achieving
the target would be impracticable.
Further, agencies are allowed to retain
appropriations for energy expenses that

CRS-11
sion House Senate Comments
are saved by the energy efficiency
measur es.
ergy Use Measurement andSec. 103. Federal buildings would beSec. 103. Federal buildings would be
untability required to be metered or sub-metered byrequired to be metered or sub-metered by
late 2010, to help reduce energy costslate 2012, to help reduce energy costs
and promote energy savings.and promote energy savings. Further, the
Secretary of Energy is required to
prepare guidelines for agency energy
managers to facilitate implementation of
me t e r i ng.
iki/CRS-RL33006ocurement of Energy-Sec. 104. Federal agencies would beSec. 104. Same provision.Currently, Section 403 of Executive Order 13123
g/wficient Products required to purchase products certified asenergy-efficient under the Energy Stardirects federal agencies to purchase life-cyclecost-effective Energy Star products.
s.orprogram or energy-efficient products
leakdesignated by the Federal Energy
://wikiManagement Program (FEMP) provided the products are found to be
httpcost-effective” and “reasonably-
available.”
ergy Savings PerformanceSec. 105. Would amend the NationalSec. 105. Would extend authority to enter
ntractsEnergy Conservation Policy Act (42into energy savings performance
U.S.C. 8287) by limiting all federalcontracts from 2006 to 2016, and would
agencies combined to a total of 100consider any energy savings performance
energy savings performance contractscontract entered into under this section
and payments of no more than a total ofafter October 1, 2003, and before the date
$500,000,000. Under such contracts,of enactment of this Act, as extended by
energy saving measures are installed atthis amendment.


government facilities by private-sector
firms in return for a share of the resulting
energy cost reductions. The Sunset and

CRS-12
sion House Senate Comments
Reporting Provisions of section 801(c) of
the Act would be repealed October 1,
2006, and any new contract after that
date would be included in the contract
limits.
luntary Commitments toSec. 107. DOE would be authorized toSec. 106. DOE would be authorized toWhile there is no current statutory authority,
duce Industrial Energyform voluntary agreements with industryform voluntary agreements with industryindustry energy efficiency programs have been in
tensity sectors or companies to reduce energysectors or companies to reduce energyplace, such as the former Climate Wise program at
use per unit of production by anuse per unit of production by 2.5%the Environmental Protection Agency (EPA).
unspecified amount. annually from 2007 through 2016.
Participants would be eligible for
iki/CRS-RL33006technical assistance and grants. An
g/wevaluation of energy-savings impacts
s.orwould be required by mid-2012.
leakvanced Building EfficiencySec. 108. DOE would be required toNo similar provision.
://wikistbed create a program to develop, test, anddemonstrate advanced federal and private
httpbuilding efficiency technologies.
eral Building PerformanceSec. 109. DOE would be directed to setSec. 107. Same provision. FederalMandatory energy efficiency performance
ards revised energy efficiency standards foragency budget requests would bestandards for federal buildings are currently set in
new federal buildings at a level 30%required to include an inventory of newSection 305(a) of P.L. 94-385 and implemented
stricter than industry or internationalbuildings and to indicate whether theythrough 10 CFR Part 435.
standards — provided the standardsmeet the standards.
would be “life-cycle cost-effective.”
creased Use of RecoveredNo similar provision.Sec. 108. DOT and other agencies that
eral Component in Federalregularly procure or provide federal
ment and Concrete Projects funds to procure material for cement or
concrete projects would be directed to
fully implement all procurement



CRS-13
sion House Senate Comments
requirements and incentives that provide
for incorporating recovered mineral
components, such as blast furnace slag
and coal combustion fly ash.
ylight Savings Sec. 111. Daylight saving time wouldNo similar provision.Under current law (Uniform Time Act, P.L. 89-
begin one month earlier (in March) and387, §3a), states can choose whether to
end one month later (in November). Thisparticipate. However, if a state chooses to
is expected to reduce energy used forparticipate, the duration of daylight savings is set
night-time electric lighting.by federal law.
ncing Energy Efficiency inSec. 112. National parks, forests, andNo similar provision.
iki/CRS-RL33006anagement of Federal Lands wildlife refuges would be required to
g/wemploy energy efficiency measures inbuildings and energy-efficient vehicles
s.or(including biodiesel and hybrid engines)
leakto the extent practicable.”
://wiki
http
Assistance and State Programs
sion House Senate Comments
w Income Home EnergySec. 121. Increased funding would beNo similar provision.


nce Program (LIHEAP) authorized for the LIHEAP grant
program for FY2005 through FY2007.
Department of Health and Human
Services funding for LIHEAP was
authorized through FY2003 in the
Human Services Authorization Act of
1998. Also, states and their designees
would be allowed to use renewable fuels

CRS-14
sion House Senate Comments
(including biomass) to carry out the
purposes of this section.
eatherization Assistance Sec. 122. Increased funding would beSec. 121. Same provision.Funding for the program was authorized through
authorized for the DOE weatherizationFY2003 under 42 U.S.C. 6872.
grant program for FY2006 through
FY2008.
ergy Programs Sec. 123. New requirements would beSec. 122. Same provision.
set for state energy conservation goals
and plans, including a 25% energy
efficiency improvement in 2012
iki/CRS-RL33006compared to 1990. Also, increased
g/wfunding would be authorized for FY2006through FY2008 for DOE state energy
s.orgrant programs.
leak
://wikiergy-Efficient Appliancebate Programs Sec. 124. DOE would be authorized tofund rebate programs in eligible states toSec. 123. Same provision.
httpsupport residential end-user purchases of
Energy Star products.
ergy-Efficient PublicSec. 125. A grant program would beSec. 124. Same provision.
ildings created for energy-efficient renovation
and construction of local government
buildings that reduce energy use by 30%
relative to standards (new buildings) or
baseline (renovoations).
w Income CommunitySec. 126. A pilot energy-efficiency andSec. 125. Same provision. Funding
ergy Efficiency Pilot Program renewable energy grant program wouldwould be authorized from 2006 through
be created for local governments, private2010.


companies, community development

CRS-15
sion House Senate Comments
corporations, and Native American
economic development entities. Funding
would be authorized from 2006 through
2008.
w Income and RuralSimilar to section 126 (above).Sec. 233. Similar intent as House bill, but
mmunity Energy Efficiencyfocused onremote and rural
t Program communities.” The Senate bill would
establish a grant program for “increasing
energy efficiency, siting or upgrading
transmission and distribution lines
serving rural areas; or providing or
iki/CRS-RL33006modernizing electric generation facilities
g/wthat serve rural areas.” Grant applications
s.orfor development of renewable energy
leaksources will be extendedpreference.”
Would provide $20 million annually for
://wiki FY2006-FY2012.
httpechnologiesNo similar provision.Sec. 126. A cooperative program would
vancement Collaborative be created that links DOE with the states.
It would be focused on research,
development, demonstration, and
deployment of technologies in which
there is a common federal and state
energy efficiency, renewable energy, and
fossil energy interest.
uilding EnergyNo similar provision.Sec. 127. A grant program would be
ficiency Codes Incentives created for states that DOE determines
have achieved a least a 90% rate of
compliance with the most recent model
building energy codes. Funds may be



CRS-16
sion House Senate Comments
used to implement building energy codes
and practices that exceed efficiency
requirements of the most recent model
building codes.
gy-Efficient Products
sion House Senate Comments
ergy Star Program Sec. 131. DOE and EPA would be givenSec. 131. Same provision. Also, DOE
iki/CRS-RL33006statutory authority to carry out thewould be directed to establish new
g/wEnergy Star program, which identifiesqualifying energy efficiency levels for
s.orand promotes energy-efficient productsclothes washers and dish washers.
leakand buildings.
://wikiAC Maintenance ConsumerSec. 132. DOE would be required toSec. 132. Similar provision.
httpucation Program implement a public education programfor homeowners and small businesses
that explained the energy-saving benefits
of improved maintenance of heating,
ventilating, and air conditioning
equipment. Also, the Small Business
Administration would be directed to
assist small businesses in becoming more
energy-e fficient.
blic Energy EducationNo similar provision.Sec. 133. DOE would be required to
ogram convene a conference with
representatives from industry, education,
professional societies, trade associations,
and government agencies to design and



CRS-17
sion House Senate Comments
establish an ongoing national public
education program focused on energy
efficiency and other topics. DOE would
be required to provide guidance and
technical assistance.
ergy Efficiency PublicNo similar provision.Sec. 134. DOE would be required to
formation Initiative conduct an advertising and public
outreach program about the need to
reduce energy use, the consumer benefits
of reduced use, the relationship to jobs
and economic growth, and cost-effective
iki/CRS-RL33006consumer measures to reduce energy use.
g/wergy Conservation StandardsSec. 133. DOE would be directed toSec. 135. Energy efficiency standards
s.orr Additional Products issue a rule that determined whetherwould be set by statute for all of the
leakefficiency standards should be set forstandards set by statute in the House bill
://wikistandby mode in battery chargers andexternal power supplies. Also, energyplus dehumidifiers, pre-rinse sprayvalves, and mercury vapor (streetlight)
httpefficiency standards would be set bylamp ballasts. Further, DOE would be
statute for exit signs, traffic signals,directed to issue a rule that prescribed
torchieres (floor lamps), distributionefficiency standards for ceiling fans,
transformers (electric utility equipment),vending machines, and the standby
unit heaters (fan-type heaters, usuallypower mode of battery chargers and
portable), and medium base compactexternal power supplies. Also, DOE
fluorescent lamps (CFLs). Further, DOEwould be authorized to set standards by
would be directed to issue a rule thatrule for residential furnace fans.


prescribed efficiency standards for
ceiling fans, vending machines,
commercial refrigerators and freezers and
refrigerator-freezers, and residential fans.

CRS-18
sion House Senate Comments
ergy Conservation StandardsNo similar provision.Sec. 136. Energy efficiency standards
r Commercial Equipment would be set by statute for commercial
air conditioning and heat pumps,
commercial refrigerators and freezers,
commercial clothes dryers, and
commercial ice makers.
pedited Rulemaking No similar provision.Sec. 137. The Energy Policy and
Conservation Act would be amended to
make conforming changes related to the
expedited rulemaking in Section 135.
iki/CRS-RL33006ergy Labeling Sec. 134. The Federal Trade CommissionSec. 138. Similar to House provision. FTC is currently required by Section 324(a) of the
g/w(FTC) would be required to considerimprovements in the effectiveness ofRequirements would apply to equipmentlisted in Senate section 135, exceptEnergy Policy and Conservation Act (P.L. 94-163)to issue rules for energy efficiency labels on
s.orenergy labels for consumer products.certain types of dehumidifiers would beconsumer products (42 U.S.C. 6294).
leakAlso, DOE or FTC would be directed toexempt from labeling requirements.
://wikiconsider prescribing labelingrequirements for many of the products
httplisted in section 133.
eemption Sec. 135. As of January 1, 2006, theNo similar provision.
energy efficiency standard for ceiling
fans set out in Section 133 shall
supersede all state and local standards for
ceiling fans.
onsumer Product EnergySec. 136. If the product efficiencySec. 135. Existing state and local
ficiency Standards standards set forth in Section 133 are notstandards for products listed elsewhere
implemented within three years of thisunder Section 135 would not be
laws enactment, the federal preemptionpreempted until the federal standards go
of state standards will expire. into effect.



CRS-19
sion House Senate Comments
termittent Escalators Sec. 137. With certain exceptions, allNo similar provision.
new escalators acquired for federal
buildings will operate on an intermittent
(on-demand) basis.
ergy Efficient Electric andNo similar provision.Sec. 139. DOE would be required to
ral Gas Utilities Study conduct a study of state and regional
policies that promote cost-effective
programs to reduce energy use (including
energy efficiency programs) that are
conducted by utilities subject to state
regulation and non-regulated utilities. A
iki/CRS-RL33006report to Congress would be required.
g/wergy Efficiency Pilot Program No similar provision.Sec. 140. DOE would be required to
s.orestablish a pilot program that provides
leakfinancial assistance to at least three, but
://wikinot more than seven, states to encourageenergy efficiency and energy use
http r e d uctio ns.
ergy Efficiency ResourceNo similar provision.Sec. 141. State regulatory agencies
ogram would be required to consider
implementing energy efficiency or other
demand reduction programs.
el Efficient EngineNo similar provision.Sec. 142. DOE and the National
chnology Program forAeronautics and Space Administration
rcraft (NASA) would be required to form a
cooperative agreement for a multi-year
program to develop 10% more fuel
efficient turbine-based propulsion and



CRS-20
sion House Senate Comments
power systems for aeronautical and
industrial applications.
or Vehicle Tires SupportingNo similar provision.Sec. 143. DOE would be required to
imum Fuel Efficiency conduct a national tire fuel efficiency
program for passenger cars and light
trucks. The program would include
establishing fuel economy standards for
tires, and the testing, labeling, and
promotion of purchases of energy-
efficient replacement tires.
iki/CRS-RL33006
g/wblic Housing
s.or
leak
sion House Senate Comments
://wiki
httpacity Building for Energy-cient, Affordable Housing Sec. 141. Activities would be requiredthat would provide energy-efficient,No similar provision.
affordable housing and other residential
measures under the HUD Demonstration
Ac t .
crease of CDBG PublicSec. 142. The amount of communityNo similar provision.The current limit is 15% under Sec. 105(a)(8) of
ices Cap for Energydevelopment block grant (CDBG) publicthe Housing and Community Development Act of
nservation and Efficiencyservices funding that could be used for1974.


tivities energy efficiency would be increased to
25%.

CRS-21
sion House Senate Comments
A Mortgage InsuranceSec. 143. Solar energy equipment can beNo similar provision.The current limit is 20% under Section 203(b)(2)
centives for Energy-Efficienteligible for up to 30% of the total amountof the National Housing Act.
using of property value that can be covered by
Federal Housing Administration
mortgage insurance.
blic Housing Capital Fund Sec. 144. The Public Housing CapitalSec. 161. Same provision.Under Section 9 of the United States Housing Act,
Fund would be modified to includethe Capital Fund is available to public housing
certain energy- and water-use efficiencyagencies to develop, finance, and modernize
improvements. public housing developments and to make
management improvements to these housing
facilities. There is currently no provision for
iki/CRS-RL33006energy conservation projects that involve water-
g/wconserving plumbing fixtures and fittings.
s.orts for Energy-ConservingSec. 145. The Department of HousingNo similar provision.Section 2(a)(2) of the National Housing Act, as
leakprovements for Assistedand Urban Development (HUD) wouldamended by Section 251(b)(1) of the National
://wikiusing be directed to provide grants for certainenergy and water efficiencyEnergy Conservation Policy Act, empowers HUDto make grants for energy conservation projects in
httpimprovements to multifamily housingpublic housing, but it has no provision for energy-
projects. and water-conserving plumbing fixtures and
fittings.
ergy-Efficient Appliances Sec. 147. Public housing agencies wouldSec. 162. Same provision.


be required to purchase cost-effective
Energy Star and FEMP-designated
appliances and products.

CRS-22
sion House Senate Comments
ergy-Efficient Standards Sec. 148. The energy efficiencySec. 163. Same provision.
standards and codes that the federal
government encourages states to use
would be changed from the codes set by
the Council of American Building
Officials to the 2003 International Energy
Conservation Code.
ergy Strategy for HUD Sec. 149. The Secretary of Housing andSec. 164. Same provision.
Urban Development would be required to
implement an energy conservation
strategy to reduce utility expenses
iki/CRS-RL33006through cost-effective energy-efficient
g/wdesign and construction of public and
s.orassisted housing.
leak
://wikiRenewable Energy
http
al Provisions
sion House Senate Comments
ssment of RenewableSec. 201. DOE would be required toSec. 201. Same provision.


ergy Resources report annually on the resource
development potential of solar, wind,
biomass, ocean (tidal, wave, current, and
thermal), geothermal, and hydroelectric
energy resources. DOE would be
required to review available assessments
and undertake new assessments as
necessary, accounting for changes in
market conditions, available
technologies, and other relevant factors.

CRS-23
sion House Senate Comments
newable Energy ProductionSec. 202. Eligibility for the existingSec. 202. Same provision.Federal law currently provides a 1.5 cent/kwh
centive incentive would be extended throughincentive for power produced from wind and
2025 and expanded to include electricbiomass by state and local governments and non-
cooperatives and tribal governments. profit electrical cooperatives (Energy Policy Act,
Qualifying resources would be expandedSec. 1212 [42 U.S.C. 13317]). The incentive is
to include landfill gas, livestock methane,funded by appropriations to DOE and was created
and ocean (tidal, wave, current, andto encourage public agencies, which are not
thermal) energy.eligible for tax incentives, in a fashion parallel to
the renewable energy production tax credit for
private sector businesses.
eral Purchase Requirement Sec. 203. Federal agencies would beSec. 203. Same provision.
iki/CRS-RL33006required, to the extenteconomically
g/wfeasible and technically practicable,” to
s.orpurchase power produced from
leakrenewable sources. The collective total
percentage of renewables use, as a share
://wikiof total federal electric energy use, wouldstart at 3% in FY2007, rise to 5% in
httpFY2010, and then reach 7.5% in 2013
and all subsequent years. Renewable
energy produced at a federal site, on
federal lands, or on Indian lands would
be eligible for double credit toward the
purchase requirement. A report to
Congress would be required every two
years.
sular Areas Energy Security Sec. 204. This section includesSec. 241 through Sec. 245. WouldFederal law currently requires comprehensive
congressional findings that electric powerrequire the Secretary of the Energy, inenergy plans for insular areas that describe the
transmission and distribution lines inconsultation with the Secretary of Interiorpotential for renewable energy resources.


insular areas are not adequate toto assess and report to Congress on
withstand hurricane and typhoonprojects with the greatest potential for
damage, and that an assessment is neededreducing dependence on fossil fuels used

CRS-24
sion House Senate Comments
of energy production, consumption,to generate electricity, and to promote
infrastructure, reliance on importeddistributed energy, in the insular areas.
energy, and indigenous sources of energyDOE would be authorized to provide
in insular areas. Would require thetechnical and financial assistance, on a
Secretary of the Interior, in consultationmatching basis with local utilities, for
with the Secretary of Energy and thefeasibility studies and the implementation
head of government of each insular area,of those projects the Secretary of Energy
to update insular area plans by 2007 todetermines are feasible and appropriate
reflect these findings, and to seek tofor implementation. No local match
reduce energy imports by increasingrequired for assistance.
energy conservation and energy
efficiency and by attempting to maximize
iki/CRS-RL33006the use of indigenous resources. Annual
g/wappropriations would be authorized that
s.orwould, in part, be used for matching
leakgrants (federal share maximum is 75%)
for projects designed to protect electric
://wikipower transmission distribution lines in
httpone or more of the territories of the
United States from damage caused by
hurricanes and typhoons.
t-InNo comparable provision.Sec. 227. Would allow Governors of 12
Northeastern states (the Ozone Transport
Region) to petition EPA to require RFG
use in attainment areas in their states.
The Administrator would be required to
do so unless he determines that there is
insufficient capacity to produce RFG, in
which case the commencement date of
the requirement shall be delayed.
forcement of StateNo comparable provision.Sec. 228. At the request of a state, would
ardsallow federal enforcement of state
controls on fuels and fuel additives.



CRS-25
sion House Senate Comments
e of Photovoltaic Energy inSec. 205. The General ServicesNo similar provision.
blic Buildings Administration (GSA) would be
authorized to encourage use of solar
photovoltaic energy systems in new and
existing buildings.
deral Procurement ofSec. 206. This provision amends theNo similar provision, but there are other7 U.S.C. 8201(c)(1) gives preference to
obased Products existing requirement that federal agenciesprovisions on biobased products andprocurement of items made with the highest
give procurement preference to itemsbiofuels in House section 939, and Senatepercentage of biobased products. 42 U.S.C.
composed of the highest percentage ofsections 938-944.6914b-1 provides for use of naturally degradable
biobased products practicable by addingmaterial in plastic ring carriers to help reduce litter
a specific reference to degradable six-and to protect fish and wildlife.
iki/CRS-RL33006pack rings.
g/womass Energy Findings Sec. 1701(a). This provision would noteNo similar provision.
s.orthat many communities near federal lands
leakare at risk to wildfire and to insect
://wikiinfestation and disease.
httpomass Energy Definitions Sec. 1701(b). This provision wouldSec. 251. This section is nearly identical
provide definitions of biomass and otherto section 1701(b) except that it would
terms that would be employed in theadd definitions of eligible operation
establishment of programs described inand “green ton.
Sections 1701(c) and 1701(d).
omass Commercial UtilizationSec. 1701(c). This provision wouldSec. 252. This section is nearly the same
t Program create a grant program to subsidizeas 1701(c), except that it also gives
biomass purchases for use in an energypriority to facilities in the highest risk
production facility. The purpose wouldareas.


be to encourage the removal of slash,
brush, pre-commercial thinning material
and other non-merchantable forest
biomass from federal lands and Indian
reservations for biomass energy
production.

CRS-26
sion House Senate Comments
proved Biomass UtilizationSec. 1701(d). This provision wouldSec. 253. This section is nearly the same
ogram create a grant program to supportas 1701(d), except that it adds to the list
proposal development for a project to beof priority conditions efficiency
pursued under Section 1701(c). A list ofimprovement, cleaner technology
priority conditions would also be set.development, and reduction of hazardous
fuel in the highest risk areas.
omass Energy Authorizations Sec. 1701(e). For the grant programs inSec. 252 (d). For the proposal
both 1701(c) and 1701(d), this provisiondevelopment grant program, this
would authorize annual appropriationssubsection would authorize annual
for FY2006 through FY2016.appropriations for FY2006 through
FY2010.
iki/CRS-RL33006 -
g/wSec. 252 (e). For the production subsidy
s.orgrant program, this subsection would
leakauthorize annual appropriations for
FY2006 through FY2010.
://wikiomass Energy Report Sec. 1701(f). This provision wouldSec. 254. This section would require a
httprequire that the Secretary of Agriculturereport that describes the interim results of
and Secretary of Interior jointly submit athe programs in sections 252 and 253.
report to Congress on the results of the
two grant programs in Section 1701(c)
and 1701(d). It would require that the
report identify biomass type, estimate the
hauling distance, and project economic
impacts.
newable Energy Security Sec. 207. For the DOE WeatherizationNo similar provision.


grant program, Section 207(a) increases
the limit on support for renewable energy
equipment from $2,500 to $3,000 per
dwelling unit. Also, Section 207(d)
creates a consumer rebate for renewable
energy equipment installed in a dwelling

CRS-27
sion House Senate Comments
or small business. The maximum rebate
is the lesser of 25% of equipment cost or
$3,000.
stallation of PhotovoltaicSec. 208. Would authorize $20 millionNo similar provision.
stem for the Administrator of GSA to proceed
with the Sun Wall Design Project, the
winning entry in a national design
competition sponsored jointly by DOE
and the National Renewable Energy
Laboratory, to install a photovoltaic solar
electric system on the headquarters
iki/CRS-RL33006building of DOE.
g/wr Cane Ethanol PilotSec. 209. This provision authorizes aSec. 231. Would establish a program to
s.orogram three-year demonstration program for thestudy the production of ethanol from
leakproduction of ethanol in Hawaii tocane sugar, sugarcane, and sugarcane
://wikiparallel the existing program for corn toshow that the process can be applicablebyproducts. The program would belimited to projects in Florida, Louisiana,
httpto cane sugar and can be replicated on aTexas, and Hawaii. A total of $36
larger scale once the sugar cane industrymillion would be authorized.
has located a site and constructed ethanol
production facilities.
ewable Portfolio Standard No similar provision.Sec. 291. This provision would require
electric utilities that have service at the
retail level to obtain a percentage of base
generation from new or existing
renewable energy sources. Specifically,
it would require utilities to obtain 10% of
their generation from renewable energy
by 2020. Utilities would be able to meet
this renewable energy portfolio (RPS)
standard by self generating, purchasing
renewable energy from another utility, or



CRS-28
sion House Senate Comments
by purchasing tradable renewable credits
from DOE.
droelectric
sion House Senate Comments
native Conditions andSec. 231. This provision in H.R. 6 wouldSec. 281. This provision in H.R. 6 wouldUnder the Federal Power Act (FPA, 16 U.S.C. 797
aysallow interested parties to proposeallow license applicants and parties to theet. seq.) the Federal Energy Regulatory
alternative license conditions, and wouldlicense proceeding to propose alternativeCommission has primary responsibility for
require federal agencies to considerlicense conditions, and would requirebalancing multiple water uses and evaluating
iki/CRS-RL33006alternatives proposed by licensefederal agencies to consider thesehydropower relicensing applications. However,
g/wapplicants. It would also require analternatives. It would also require anthe FPA also creates a role in the licensing process
s.oragency to accept an applicant’s proposedagency to accept a proposed alternative iffor federal agencies that are responsible for
leakalternative if the agency found that thethe agency (1) found that the alternativemanaging fisheries or federal reservations (e.g.
alternative (1) provides for the adequateprovides for the adequate protection andnational forests, etc.). Specifically, sections 4(e)
://wikiprotection and utilization of the federalutilization of the federal reservation, or isand 18 of the FPA give certain federal agencies
httpreservation, or is no less protective of theno less protective of the fish resourcethe authority to attach conditions to FERC
fish resource than the fishway initiallythan the fishway initially prescribed, andlicenses. For example, federal agencies may
prescribed, and (2) costs less to(2) concurs with the license applicant’srequire applicants to build passageways through
implement, and/or will improve operationjudgement that the alternative costs lesswhich fish can travel around the dam, schedule
of the project for electricity production.to implement, and/or will improveperiodic water releases for recreation, ensure
operation of the project for electricityminimum flows of water for fish migration,
production. control water release rates to reduce erosion, or
limit reservoir fluctuations to protect the
reservoir’s shoreline habitat. Once an agency
issues such conditions, FERC must include them
in its license. While these conditions often
generate environmental or recreational benefits,
they may also require construction expenditures
and may increase costs by reducing operational
flexib ility.



CRS-29
sion House Senate Comments
When issuing conditions, H.R. 6 wouldSame as House bill.This equal consideration clause is a topic of
require agencies to provide FERC with adisagreement. Opponents of the provision are
written statement demonstrating that theconcerned that it would hamper agencies’ ability
relevant Secretary gaveequalto protect the resources under their jurisdiction;
consideration to the effects of theproponents argue that conditioning agencies, like
conditions on factors such as energyFERC, should be required to balance competing
supply, flood control, navigation, waterwater uses.
supply, and air quality.
H.R. 6 would require FERCs DisputeSame as House bill.FERC’s Dispute Resolution Service is a
Resolution Service to issue non-bindingfacilitative entity that is not currently established
advisories. to make recommendations.
iki/CRS-RL33006
g/wdroelectric Productioncentives Sec. 241. The Secretary of Energy wouldmake incentive payments to non-federalNo similar provision.
s.orowners or operators of hydroelectric
leakfacilities for power that is first produced
://wikiwithin 10 years of the date of enactmentby generating equipment added to
httpexisting facilities. Payments of 1.8 cents
per kilowatt-hour (kWh), up to a total of
$750,000/year, may be made for up to 10
years from the first year after the facility
begins operating.
droelectric EfficiencySec. 242. The Secretary of Energy wouldNo similar provision.


provement make incentive payments to the owners
or operators of hydroelectric facilities
who make capital improvements on
existing facilities that improve efficiency
by at least 3%. Payments would not
exceed 10% of the improvement cost and
would not exceed $750,000 at any single

CRS-30
sion House Senate Comments
facility.
all Hydroelectric PowerSec. 243. This provision would amendNo similar provision.
ojects the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2078), to change the
date on or before which a dam must be
constructed to qualify as an existing dam,
from April 20, 1977, to March 4, 2003.
aska State jurisdiction overNo similar provision.Sec. 282. Under this provision the State16 U.S.C. §823c allows the State of Alaska to
iki/CRS-RL33006all hydroelectric projects of Alaska could decide not to issueregulate Alaskas small hydroelectric projects
g/wconditions recommended by certain stateand federal resource agencies under 16in lieu of the Federal Energy RegulatoryCommission — if it meets certain conditions. For
s.orU.S.C. §823c (a)(3)(c).example, §(a)(3)(c) requires that the State of
leakAlaska establishconditions for the protection,
://wikimitigation, and enhancement of fish and wildlife”based on recommendations received from certain
httpfederal agencies.
t Creek hydroelectric projectNo similar provision.Sec. 283. This provision would allow the
Federal Energy Regulatory Commission
to extend, by 3 years, a preliminary
licensing permit for Flint Creek
Hydroelectric Project.



CRS-31
Oil and Gas
e and Home Heating Oil
sion House Senate Comments
rmanent Authority to OperateSec. 301. The House bill wouldSec. 301. The language in the Senate billCongress authorized the Strategic Petroleum
ic Petroleum Reserve permanently authorize the Strategicis identical in most respects. However,Reserve (SPR) in the Energy Policy and
Petroleum Reserve (SPR) program. Thethe Senate bill would require theConservation Act (EPCA, P.L. 94-163). In 2000,
authorization also permits U.S.Secretary to issue for public comment aCongress also authorized establishment of a
participation in emergency activities ofset of procedures for acquiring oil for theNortheast Heating Oil Reserve (NHOR). The
the International Energy Agency (IEA)SPR that would take into account theauthorities governing the SPR and NHOR are
without risking violation of antitrust lawcurrent future price and supply of crudecurrently authorized through FY2008 by P.L. 108-
iki/CRS-RL33006and regulation. The bill would encourageand petroleum products, balanced with7.
g/wthe Secretary of Energy to fill the SPR tonational security considerations. The
s.orits authorized size of 1 billion barrelsprocedures would also establish a process
leakwithout “incurring excessive cost orfor review of requests to delay scheduled
putting upward price pressure ondeliveries of oil to the SPR. These
://wikipetroleum products such as gasoline andprocedures would be required to be in
httpdiesel fuel, or home heating oil. place 180 days after enactment.
nal Oilheat ResearchSec. 302. Extends authorization of theSec. 302. Identical to the House
ce National Oilheat Research Allianceprovision.
(NORA) to 2010. NORA was
established by the Energy Policy Act of
2000 (P.L. 106-469), and assesses a fee
of $.002 per gallon on home heating oil
sold by retail distributors. The proceeds
are dedicated among other purposes to
research on improving the efficiency of
furnaces and boilers.
n Sec. 303. Tthe Secretary of EnergyNo comparable provision.


would be required, within one year of the

CRS-32
sion House Senate Comments
enactment of the legislation, to select
sites — from among those that have been
previously studied — for expansion of
the SPR to its fully authorized volume of
one billion barrels.
ension of StrategicSec. 304. Would permit acceptingNo explicitly comparable provision. Producers of offshore leases in the Gulf of Mexico
troleum Reserve Deliveries deliveries of royalty-in-kind (RIK) oil toHowever, see Senate Sec. 301 above forpay a royalty to the U.S. Treasury based upon
the SPR only when crude oil prices wereprocedures governing additional fill ofproduction at their sites. Since 1999, most new
below $40/barrel.the SPR consistent with oil price andfill of the SPR has been accomplished by the
supply.acceptance of royalty-in-kind (RIK) oil from these
producers in lieu of cash paid to the Treasury. It
iki/CRS-RL33006is not known whether the Administration plans to
g/wcontinue RIK fill after current contracts end
s.orduring the summer of 2005.
leakall Business and AgriculturalNo comparable provision.Sec. 303. Would establish a loan program
://wikioducer Energy Emergencyster Loan Program. to provide relief to qualifying smallbusinesses that have been jeopardized by
httpprice increases since January 1, 2005 in
the cost of petroleum fuels. Loans may
not exceed $1.5 million unless the
business is a major regional employer or
if the limit is otherwise waived. Loans
would be extended for the purpose of
displacing petroleum consumption
through the use of alternative or
renewable fuels. Would also amend the
Consolidated Farm and Rural
Development Act (7 U.S.C. 1961(a)) to
include agricultural producers under the
program.



CRS-33
oduction Incentives
sion House Senate Comments
quefied Natural Gas Sec. 320. This would expand the scopeSec. 381. This would amend section 3 of
of the Natural Gas Act (15 U.S.C. 717b)the Natural Gas Act, granting FERC
to include importing and exportingexclusive authority to approve the siting,
natural gas as well as the construction ofconstruction, and operation of import or
liquefaction and re-gasification facilities.export facilities. FERC would be
Building and operating such facilitiesprohibited from denying such a project
would require authorization by thebecause it is for the benefit of the project
Federal Energy Regulatory Commission.sponsor. Nor would it be permitted to
FERC would be designated as leadcondition authorization on allowing use
iki/CRS-RL33006agency for the purpose of coordinatingall applicable federal authorizations, andby another party, regulation of rates orother conditions of service, or the
g/wfor coordinating compliance with therequirement that rates or tariffs be filed
s.orNational Environmental Policy Act ofwith FERC.
leak1969 (42 U.S.C.4312). FERC would set a-
schedule ensuring expeditiousThis provision specifies that it would not
://wikiadministrative proceedings, and compileaffect the rights of states under the
httpthe consolidated record of all state andCoastal Zone Management Act of 1972
federal proceedings.(1 4 U.S.C. 1451), the Clean Water Act
(42 U.S.C. 7401), or the Federal Water
Pollution Control Act (33 U.S.C.1251).
-
Measures adding customers which have
the effect of degrading service for
existing customers or causing
subsidization of new customers rates by
old customers would be prohibited.



CRS-34
sion House Senate Comments
draulic Fracturing Sec. 327. Would amend the Safe DrinkingNo similar provision.The SDWA required EPA to promulgate
Water Act (SDWA), Section 1421(d), toregulations for state underground injection control
specify that the definition ofunderground(UIC) programs that included minimum
injection excludes the injection of fluidsrequirements for programs to prevent underground
or propping agents used in hydraulicinjection that endangers sources of drinking water.
fracturing operations related to oil or gas(§1421(b)(2)). Before 1997, EPA had not
production activities. Would removeconsidered regulating hydraulic fracturing for oil
EPAs current authority to regulate theand gas development, because it did not view this
underground injection of fluids used inwell-production process as an activity subject to
hydraulic fracturing, as needed to protectregulation under SDWA’s UIC program. The
drinking water. House provision responds to a 1997 court ruling
that directed EPA to regulate hydraulic fracturing
iki/CRS-RL33006of coalbed methane (CBM) wells as underground
g/w inj ectio n.
s.or(See Appendix A for more information)
leak
l and Gas Exploration andSec. 328. Would amend Section 502 of theNo similar provision.Currently under the CWA, the operation of
://wikiction Defined Clean Water Act (CWA) (the definitionsprovision) to give a permanent exemptionfacilities involved in oil and gas exploration,production, processing, transmission, or treatment
httpfrom CWA stormwater runoff rules for thegenerally is exempt from stormwater runoff
construction of exploration and productionregulations, but the construction of these facilities
facilities by oil and gas companies and theis not. The House amendment would modify the
roads that service those sites. Act to specifically include construction activities
in the types of oil and gas facilities that are
covered by the laws statutory exemption from
stormwater rules. (See Appendix B for more
inf o rma t io n)
ter Continental ShelfSec. 329. For applications to buildNo similar provision


ovisions deepwater ports, the Secretary of
Transportation could use environmental
impact statements or other studies
prepared by other federal agencies

CRS-35
sion House Senate Comments
instead of conducting separate studies.
Information from state and local
governments and private-sector sources
could also be used.
peals Relating to PipelineSec. 330. Appeals of decisions under theNo similar provision.
nstruction or OffshoreCoastal Zone Management Act on natural
eral Development Projects gas pipelines and offshore energy
projects would be based exclusively on
the record compiled by FERC or the
relevant permitting agency. It would be
the sense of Congress that appeals
iki/CRS-RL33006relating to natural gas pipeline
g/wconstruction would be coordinated within
s.orFERC’s established timeframes under
leaksections 3 and 7 of the Natural Gas Act
(15 U.S.C. 717 b 717 (f).
://wiki Natural Gas Storage No comparable provision.Sec. 382. Would authorize FERC to
httpallow provision of gas storage facilities at
market based rates for facilities place in
service after date of enactment.
ocess Coordination; Hearings;No comparable provision.Sec. 383. Strikes Sec. 15 of the Natural
les of Procedure Gas Act and inserts a new Sec. 15, which
defines Federal authorization as any
required under federal law, including
certificates of convenience and necessity.
-
FERC would be designated lead agency
for NEPA compliance, preparing a single
environmental review document and
setting a schedule for other Federal



CRS-36
sion House Senate Comments
authorizations. In situations where an
applicant or a state takes issue with this
process, an appeal to the President would
be provided for. The President would be
required to issue or deny an
authorization within 90 days.
ral Gas Market Reform Sec. 332. Would modify the CommoditySec. 384. Penalties. Modifies Natural
Exchange Act (CEA, 7 U.S.C. 13),Gas Act and Natural Gas Policy Act
banning “knowingly false or knowinglypenalties for violating FERC Orders.
misleading or knowingly inaccurateWould raise the prison term limit from 2
reports.” It also would increase theto 5 years, and the fine ceiling from
iki/CRS-RL33006penalties for false reporting.$500 per violation to $50,000 for each
g/wday the violation takes place. Violations
s.orof emergency orders would be subject to
leakfines up to $1 million per day.
-
://wikiCivil penalties for violating an orderunder the NGA would be subject to a
httpnew $1 million cap.
Sec. 385. Market Manipulation. Would
amend the NGA to prohibit using
deceptive practices to influence price
determination or reporting in
contravention of FERC regulations
protecting consumers.
Sec. 389. Prohibition of Trading and
Serving By Certain Individuals. Would
amend the NGA to facilitate banning of
individuals convicting of violating FERC
orders from being officers of natural gas
companies and prohibiting them from
trading natural gas.



CRS-37
sion House Senate Comments
ral Gas MarketSec. 333. Would direct FERC to issueSec. 386. Market Transparency.
ansparency rules calling for the timely reporting ofAnticipates that FERC could establish an
natural gas prices and availability and toelectronic bulletin board for making
evaluate the data for accuracy. Themarket information available to the
language specifies that FERC notpublic. Would provide for cooperation
impinge on the role of commercialwith the Commodity Futures Trading
publishers of natural gas prices.Commission. FERC would be prohibited
from competing with private market
information providers.
eral State Liquified NaturalNo comparable provision. Sec. 388. Within one year of enactment,
rums. the Secretary of Energy — in conjunction
iki/CRS-RL33006with FERC, the Secretaries of Homeland
g/wSecurity, Transportation and coastal state
s.orGovernors would be tasked with
leakconvening a series of 3 public forums to
take place in locations where LNG
://wikifacilities might be sited.
httpd Mineral IndustrySec. 334. Within a year after enactment,
ers the secretaries of Energy, Labor, and the
Interior must submit a report to Congress
with recommendations on meeting future
labor requirements for the domestic oil,
gas, and mining industries.
Oil Producing and ExportingNo comparable provision.Sec. 328. Would make it a violation of
rtels. the Sherman Act for foreign states or
their agents, by cartel or cooperative
action, to limit the production or
distribution of fossil fuels, act
collectively to set or maintain prices, or
restrain trade in markets for these fuels.



CRS-38
sion House Senate Comments
The doctrine of sovereign immunity from
U.S. jurisprudence would no longer
apply in the event of action being
brought against violators.
sion House Senate Comments
g and PermittingSec. 344. The Secretaries of the InteriorNo similar provisionThe federal oil and gas leasing program is governed
ocesses and Agriculture would be required tounder the Mineral Leasing Act of 1920, as amended
iki/CRS-RL33006sign a memorandum of understanding(30 U.S.C. 181 et. seq.). Bureau of Land
g/w(MOU) on the “timely processing of oilManagement (BLM) procedures for an application
s.orand gas lease applications, surface usefor a permit to drill (APD) are contained in 43 CFR
leakplans and drilling applications, the3162.3-1. The APD is posted for 30 days. Within 5
elimination of duplication, and ensuringworking days after the 30-day period, the BLM
://wikiconsistency in applying leaseconsults with surface-managing agencies whose
httpstipulations. consent is also required, then notifies the applicant
of the results. The BLM is also required to process
the application within the 35-day period.Sec. 346. Compliance with ExecutiveNo similar provision
Order No. 13211 (42 U.S.C. 12301 note),
requiring energy impact studies, would
be required before taking action on
regulations having an effect on domestic
energy supply.
couraging Prohibition ofSec. 355. Congress would urge that noNo similar provision


illing in the Great Lakes federal or state permits be issued for oil
and gas drilling in or under the Great
La ke s .

CRS-39
sion House Senate Comments
deral Coalbed MethaneSec. 358. States on the list ofaffectedSec. 391. Same provision.The list ofaffected states” established under the
gulation states” under section 1339(b) of the EnergyEnergy Policy Act of 1992 (42 U.S.C. 13368 (b))
Policy Act of 1992 (42 U.S.C. 13368(b))includes: West Virginia, Pennsylvania, Kentucky,
would be removed if they took specifiedOhio, Tennessee, Indiana, and Illinois. These
actions within three years after enactmentstates are on the list as a result of coalbed methane
of H.R. 6 or had previously taken action(CBM) ownership disputes, impediments to
under section 1339(b). development, lack of a regulatory framework to
encourage CBM development in the state, and no
current extensive development of CBM. A state
may be removed from the list through a
petitioning process initiated by the governor of
that state.
iki/CRS-RL33006
g/wning Revitalization
s.or
leak
sion House Senate Comments
://wiki
httport TitleSec. 371. This subtitle is designated asNo provision.Closure of refineries since 1981 has resulted in the
the “United States Refineryshuttering of nearly 500,000 barrels per day of
Revitalization Act of 2005.” capacity. While the number of operating facilities
has fallen from 324 to 149, the total amount of
capacity has risen, the result of expansion of
existing plants. But the investment climate for
expansion of old plants and construction of new
remains clouded, in part due to regulatory
uncertainty at the federal, state, and local levels.
The findings in the House bill make note of the
planned Yuma, AZ, refinery, which just received
its federal air quality permit after five years under
the current regulatory process.



CRS-40
sion House Senate Comments
ndingsSec. 372. Based on the finding that fuelNo provision.
demand exceeds the production capacity
of domestic refineries, it would be in the
national interest to increase capacity to
refine fuels within the United States. The
findings in this section also note that no
new refinery has been built in the country
since 1976, and there has been a
reduction in the number of operating
facilities. It also notes that gasoline
demand is expected to increase 45%
between 2005 and 2025.
iki/CRS-RL33006
g/wrposeSec. 373. The Acts purpose would be toNo provision.
s.orprovide an accelerated review and
leakapproval process for idled refineries, and
to lend legal and technical support to
://wikistates needing help to meet such permitdemands.
http
inery Revitalization ZonesSec. 374. Refinery Revitalization ZonesNo provision.


would be designated, and the Secretary of
Energy would identify areas (within 90
days after enactment) that have
experienced mass layoffs in
manufacturing, contain an idle refinery,
and have an unemployment rate that
exceeds the national average by 10%.

CRS-41
sion House Senate Comments
emorandum of UnderstandingSec. 375. This section calls for aNo provision.
memorandum of understanding between
the Secretary of Energy and the EPA
Administrator that would designate
appropriate agency officials and staff to
implement the purposes of the Act and
administer any regulations issued
thereunder. State Governors and Indian
Tribe representatives could enter into this
MOU.
vironmental PermittingSec. 376. Once a qualifying state entersNo provision.
iki/CRS-RL33006nceinto the MOU, this section calls on the
g/wSecretary of Energy to delegate agency
s.orstaff to provide assistance to the state.
leakThe EPA Administrator would be
similarly charged, and specifically
://wikidirected to provide expertise regardingthe laws the agency administers as they
httprelate to refineries.
ordination and ExpeditiousSec. 377. DOE would be designated leadNo provision.


iew of Permitting Processagency. Upon written request of an
applicant, the Department would
coordinate all applicable authorizations
and environmental reviews, including
those at the state and local level. It would
be required to set a prompt and binding
schedule for federal reviews and
authorizations, such that the whole
federal process would be completed
within six months. The Department
would maintain a complete consolidated

CRS-42
sion House Senate Comments
record of the proceedings, and act as the
arbiter in the case of appeals. Decisions
on appeals would be required within 60
days. The Secretary would establish a
60-day pre-application process to help
establish likelihood of approval and
identify potential issues. In its lead
agency role, the Department would
coordinate all federal actions for NEPA
compliance, as well as consolidation of
the impact statement into one document
covering all environmental impacts.
iki/CRS-RL33006
g/wmpliance With AllSec. 378. This section calls for theNo provision.
s.orronmental Regulationscompliance with all applicable laws and
leakq uir e d r e gul a t i o ns.
://wikiinitionsSec. 379. This section includesdefinitions for a number of significantNo provision.


httpitems, including: (1) Federal
authorizations means those required
under the Clean Air Act, the Federal
Water Pollution Control Act, the Safe
Drinking Water Act, the Comprehensive
Environmental Response, Compensation,
and Liability Act of 1980, the Solid
Waste Disposal Act, the National
Historic Preservation Act, and the
National Environmental Policy Act of
1969. (2) An idle refinery is real
property used as a refinery since
December 31, 1979, and not operational
before April 1, 2005. (3) A refinery

CRS-43
sion House Senate Comments
means any facility designed and operated
to store or ship oil, as well as to operate
as a refinery or a refinery component.
This includes places where fuel blending
took place. (4) A qualifying state is a
state or Indian tribe which has entered
into a MOU with the Secretary of
Energy, and has a refining infrastructure
coordination office.
iki/CRS-RL33006 Coal
g/w
s.orean Coal Power Initiative
leak
://wikision House Senate Comments
httpthorization of AppropriationsSec. 401. Funding for the Clean CoalSec. 401. Funding for CCPI would be
Power Initiative (CCPI) would beauthorized for $200 million for each year
authorized for $200 million for each yearfrom FY2006-FY2012. Specific
from FY2006-FY2014. reductions in mercury would be
estab lishe d .
oject CriteriaSec. 402. The technical criteria would beSec. 402. Similar provision, except
established for coal-based gasificationslightly different technical criteria by the
and other projects. The federal share ofyear 2020 for coal gasification projects.


financing for each clean coal project
would not exceed 50%.

CRS-44
sion House Senate Comments
portSec. 403. A report on the projects statusSec. 403. Same provision, except a report
and technical milestones would bewill be filed every two years through
submitted after the first year and every2012.
two years (through 2014) by the
Secretary of Energy to various
congressional committees.
ean Coal Centers ofSec. 404. Would include grants toSec. 404. Same provision
cellenceuniversities to establish Centers of
Excellence for energy systems of the
fut u r e .
iki/CRS-RL33006tegrated Coal/RenewableNo similar provision.Sec. 405. Integrated Coal/ Renewable
g/wergy SystemEnergy System. The Secretary wouldprovide loan guarantees for an integrated
s.orgasification combined cycle facility of at
leakleast 200 MW that would be combined
://wikiwith renewable energy sources, sequestercarbon dioxide emissions, and be a
httpsource of hydrogen for near-site fuel cell
demonstrations. The federal share would
not exceed 50%.
er Projects
sion House Senate Comments
ean Coal Technology LoanSec. 411. The Secretary of Energy wouldSec. 406. Similar provision, except the
be authorized to provide a $125 millionmaximum loan amount would be $80
loan to an experimental clean coal powermillion.


plant in Healy, Alaska.

CRS-45
sion House Senate Comments
al GasificationSec. 412. Loan guarantees would beSec. 407. Similar provision except that it
authorized for a power plant of at leastspecifies the coal would come from the
400 MW capacity using integratedwestern United States, the facility would
combined-cycle (IGCC) technology in abe located in a western state and would
deregulated market and receiving nonot be eligible for loan guarantees.
ratepayer subsidy.
troleum Coke GasificationSec. 414. Loan guarantees would beNo similar provision
available for at least five petro-coke
gasification polygeneration projects,
involving co-production of electricity and
fuels.
iki/CRS-RL33006
g/wectron ScrubbingonstrationSec. 416. The Secretary of Energy wouldbe directed to use $5 million ofNo similar provision
s.orappropriated funds to begin a project
leakmanaged by the DOE Chicago
://wikiOperations Office to demonstrate high-energy electron scrubbing technology for
httphigh-sulfur coal emissions.
and Related Programs
sion House Senate Comments
ean Air Coal Program/ CoalSec. 441. This section would amend theSec. 956. Similar provision.


d Related TechnologiesEnergy Policy Act of 1992 with the
addition of a clean air coal program to
promote increased use of coal,
acceptance of new clean coal
technologies, and advance deployment of

CRS-46
sion House Senate Comments
pollution control equipment to meet the
Clean Air Act (42 U.S.C. 7402 et seq.)
(See Appendix C for more
inf o rma t io n.)
Indian Energy
sion House Senate Comments
iki/CRS-RL33006ort TitleSec. 501. This title would be cited as the“Indian Tribal Energy Development andSec. 501. Similar provision.
g/wSelf-Determination Act of 2005.”
s.or
leakfice of Indian Energy PolicySec. 502. Title II of the Department ofSec. 502. Similar provision.
d Programs Energy Organization Act (42 U.S.C.
://wiki7131 et. seq.) would be amended to
httpcreate the Office of Indian Energy Policy
and Programs at the Department of
Energy.
dian Energy Sec. 503. Title 26 the Energy Policy ActSec. 503. Similar provision.Assistance for tribal energy development would
of 1992 (25 U.S.C. 3501) would bebe provided through DOI by grants and low-
replaced by this section, which outlinesinterest loans and through DOE by grants and loan
procedures whereby Indian tribes wouldguarantees. Federal agencies could give
be able to develop and manage thepreference to Indian energy when purchasing
energy resources located on, and rights-energy products and byproducts. DOI would be
of-way through, tribal land. Within arequired to undertake a review and make
year of enactment of the bill, therecommendations regarding tribal opportunities
Department of the Interior (DOI) wouldunder the Indian Mineral Development Act of
issue regulations on the requirements for1982 (25 U.S.C. 2101 et. seq.). The Bonneville
approval of tribal energy resourcePower Administration and Western Area Power



CRS-47
sion House Senate Comments
agreements. Under their own tribalAdministration would be authorized to assist in
energy resource agreements as approveddeveloping distribution systems that provide
by DOI, Indian tribes would be able topower to Indian tribes using the federal
enter into leases or business agreementstransmission system.
for energy development and grant rights-
of-way over tribal land for pipelines or
electric lines.
nsultation with Indian Tribes Sec. 504. The Secretaries of Energy andSec. 506. Similar provision.
of the Interior would be required to
consult with Indian tribes in carrying out
this title.
iki/CRS-RL33006
g/wur Corners Transmission Lineoject Sec. 505. The Dine Power Authority, anenterprise of the Navajo nation, would beSec. 504. Similar provision.
s.oreligible to receive grants and other
leakassistance to develop a transmission line
://wikifrom the Four Corners Area to southernNevada, including related generation
httpfacilities.
ergy Efficiency in FederallyNo provision.Sec. 505. Would amend the Native
d Housing.American Housing and Self-
Determination Act of 1996 to include as
a goal “greater energy efficiency.”



CRS-48
Nuclear Matters
ice-Anderson Act Amendments
sion House Senate Comments
ort TitleSec. 601.Price-Anderson AmendmentsSec. 601. Same.The Price-Anderson Act, which addresses liability
Act of 2005.”for damages to the general public from nuclear
incidents, would be extended through 2025 by
both bills. The Price-Anderson liability system
was up for reauthorization on August 1, 2002, and
was extended for commercial nuclear reactors
through December 31, 2003, by the FY2003tension of IndemnificationthoritySec. 602. Price-Anderson liabilitycoverage for commercial reactors, DOESec. 602. Same.
consolidated appropriations resolution (P.L. 108-contractors, and non-profit educational
iki/CRS-RL330067). Even without further extension, existing
g/wreactors will continue to operate under the currentinstitutions would be extended through
s.orPrice-Anderson liability system, but any newDecember 31, 2025.
leakreactors would not be covered. Price-Andersonaximum AssessmentSec. 603. The total retrospectiveSec. 603. Same.
coverage for DOE nuclear contractors waspremium for each reactor would be set at
://wikiextended through December 31, 2004, by thethe current level of $95.8 million and the
httpNational Defense Authorization Act for FY2003limit on per-reactor annual payments
(P.L. 107-314). A further two-year extension forraised to $15 million. Both levels would
DOE contractors was approved by Congress onbe adjusted for inflation every five years,
October 9, 2004, as part of the Ronald W. Reaganbeginning August 20, 2003.
National Defense Authorization Act for Fiscal
Year 2005 (P.L. 108-375).artment of Energy LiabilitySec. 604. The liability limit for DOESec. 604. Same.
(See Appendix D for more information.)mitcontractors would be set at $10 billion
per incident, to be adjusted for inflation
every five years under Sec. 607.
cidents Outside the UnitedSec. 605. The liability limit andSec. 605. Same.


maximum indemnification for DOE
contractors for nuclear incidents outside

CRS-49
sion House Senate Comments
the United States would be raised from
$100 million to $500 million.
portsSec. 606. NRC and DOE would have toSec. 606. Same.
report to Congress by the end of 2021 on
the need for further Price-Anderson
extensions and modifications.
flation AdjustmentSec. 607. The liability limit for DOESec. 607. Same.
nuclear contractors would be adjusted for
inflation every five years after July 1,
2003.
iki/CRS-RL33006eatment of Modular ReactorsSec. 608. For the purpose of applying theSec. 608. Same.For example, a power plant with six 120-
g/wlimits on retrospective premiums after amegawatt modular reactors would be liable for
s.ornuclear incident, a nuclear plantretrospective premiums of up to $95.8 million,
leakconsisting of multiple small reactorsrather than $574.8 million.
://wiki(100-300 megawatts per reactor, up to atotal of 1,300 megawatts at the plant site)
httpwould be considered a single reactor.
plicabilitySec. 609. None of the increased liabilitySec. 609. Same.
limits would apply to nuclear incidents
taking place before the amendments are
enacted.
ohibition on U.S. Liability forSec. 610. Price-AndersonNo provision.


rtain Foreign Incidentsindemnification would be prohibited for
contracts related to nuclear facilities in
countries found to sponsor terrorism.
The prohibition would not apply to
missions necessary for nuclear safety or
no np r o lifer atio n.

CRS-50
sion House Senate Comments
il PenaltiesSec. 611. For future contracts, the billSec. 610. Substantially the same.
would eliminate the civil penalty
exemption for nuclear safety violations
by the seven non-profit contractors listed
in current law. DOE’s authority to
automatically remit penalties imposed on
all non-profit educational institutions
serving as contractors would also be
repealed. However, the bill would limit
the civil penalties against a non-profit
contractor to the amount of management
fees received under that contract within a
iki/CRS-RL33006one-year period.
g/w
s.orancial AccountabilitySec. 612. The federal government couldNo provision.
leaksue DOE contractors to recover at least
some of the compensation that the
://wikigovernment had paid for any accidentcaused by intentional DOE contractor
httpmanagement misconduct. Such cost
recovery would be limited to the amount
of the contractor’s profit under the
contract involved, and no recovery would
be allowed from nonprofit contractors.
atters
sion House Senate Comments
mmercial Reactor LicenseSec. 621. The initial 40-year period for aNo provision.Currently, under Atomic Energy Act Section 185
od commercial nuclear reactor license wouldb. (added by the Energy Policy Act of 1992, P.L.
begin when NRC authorized the reactor102-486), the 40-year initial license period may



CRS-51
sion House Senate Comments
to commence operation after constructionbegin when a “combined construction and
had been completed.operating license” is issued several years before
the reactor is to start operating. Before Section
185 was added in 1992, reactor operating licenses
had been issued only after construction was
complete, but any future licenses are expected to
use the combined license option.
raining and FellowshipSec. 622. Funding of $1 million per yearNo provision.
ogram would be authorized from FY2005-
FY2009 for NRC to conduct a training
and fellowship program to develop
iki/CRS-RL33006critical nuclear safety regulatory skills.
g/wst Recovery FromSec. 623. NRC would be authorized toNo provision.Such authority is limited under current law
s.orernment Agencies charge cost-based fees for all services(Atomic Energy Act, Section 161 w.).
leakrendered to other federal agencies.
://wiki
httpination of Pension OffsetSec. 624. When NRC has a critical needNo provision.
r Key NRC Personnel for the skills of a retired employee, NRC
could hire the retiree as a contractor and
exempt him or her from the annuity
reductions that would otherwise apply.
titrust Review Suspension Sec. 625. NRC would no longer have toNo provision.


submit nuclear reactor license
applications to the Attorney General for
antitrust reviews, as currently required by
Atomic Energy Act Section 105 c.

CRS-52
sion House Senate Comments
commissioning FundSec. 626. NRC would be explicitlyNo provision.This provision is particularly aimed at cases in
otection authorized to issue regulations ensuringwhich an original nuclear power plant owner has
that funds collected to decommissionsold the plant but retained control over
nuclear power plants would not be useddecommissioning funds collected before the
for other purposes.ownership transfer.
mitation on DOE Legal FeeSec. 627. Except as required by existingNo provision.
imbursement contracts, DOE would be prohibited from
reimbursing its contractors for legal
expenses incurred in defending against
whistleblower” complaints that are
ultimately upheld.
iki/CRS-RL33006
g/wility Study formmercial Reactors at DOESec. 629. The Secretary of Energy wouldbe required to submit a study to CongressNo provision.
s.oron the feasibility of developing
leakcommercial nuclear power plants at
://wikiexisting DOE sites.
httpvernment Uranium Sales Sec. 630. With certain exceptions, DOENo provision.


uranium sales would be restricted to 3
million pounds per year from FY2005-
FY2009, 5 million pounds per year in
FY2010-FY2011, 7 million pounds per
year in FY2012, and 10 million pounds
per year thereafter. DOE must report to
Congress within three years on the
impact of such sales on the domestic
uranium industry.

CRS-53
sion House Senate Comments
ium Mining Research andSec. 631. Funding of $10 million perNo provision.
velopment year would be authorized during
FY2006-FY2008 for a cost-shared
research and development program by
DOE and domestic uranium producers on
in-situ leaching mining technologies and
related environmental restoration
technologies, except that “no activities
funded under this section may be carried
out in the State of New Mexico.”
histleblower Protection Sec. 632. Existing whistleblowerSec. 625. Whistleblower protections
iki/CRS-RL33006protections for employees of nuclearwould be extended to employees of DOE
g/wpower plants and other NRC licenseesand all DOE contractors and
s.orand employees of DOE contractorssubcontractors. An employee could take
leakwould be extended to employees of NRCa whistleblower complaint to federal
contractors. An employee whosecourt if the Secretary of Labor had not
://wikiwhistleblower retaliation complaint didnot receive a final decision by themade a final decision within 180 days.
httpSecretary of Labor within 540 days could
take the case to federal court.
anium Exports for MedicalSec. 633. Highly enriched uraniumSec. 621. NAS would study theThe current HEU export restrictions are intended
ope Production (HEU) could be exported to Canada,effectiveness of the current HEU exportto spur foreign cooperation with U.S. efforts to
Belgium, France, Germany, and therestrictions, the progress that medicalconvert all HEU reactors to LEU, but supporters
Netherlands for production of medicalisotope producers are making inof the exemption contend that the restrictions
isotopes in nuclear reactors. Thoseconverting to LEU, whether the supply ofcould disrupt the supply of medical isotopes
countries would be exempt from existingmedical isotopes could be affected by theproduced in foreign HEU reactors.


requirements (under Section 134 of theHEU restrictions, and other aspects of the
Atomic Energy Act) that they agree toissue.
switch to low-enriched uranium (LEU) as
soon as possible and that LEU fuel for
their reactors be under active

CRS-54
sion House Senate Comments
development. Instead, those countries
would have to agree to convert to suitable
LEU fuel when it became available.
NRC would have to review current
security requirements for HEU used for
medical isotope production and impose
additional requirements if necessary.
The National Academy of Sciences
(NAS) would study the potential
availability and cost of medical isotopes
produced in LEU reactors; that study
would be used by DOE to help determine
iki/CRS-RL33006whether U.S. medical isotope demand
g/wcould be reliably and economically met
s.orwith production facilities that do not use
leakHEU. If the Secretary of Energy certifies
that such demand can be met, the export
://wikiexemption in the House bill would
httpter minate.
rnald Byproduct Material Sec. 634. DOE-managed material in theNo provision.


concrete silos at the Fernald (OH)
uranium processing facility would be
considered byproduct material (as
defined by section 11 e.(2) of the Atomic
Energy Act of 1954 (42 U.S.C.
2014(e)(2)). DOE would dispose of the
material in an NRC- or state-regulated
facility.

CRS-55
sion House Senate Comments
e Disposal of Greater-than-Sec. 635. DOE would designate an officeSec. 622. Similar to House provision,
ass-C Radioactive Waste with the responsibility for developing awith the additional requirement that
comprehensive plan for permanentwithin 180 days after enactment DOE
disposal of all low-level radioactivewould give Congress a plan for continued
waste with concentrations ofrecovery and storage of radioactive
radionuclides that exceed the limitssealed sources that pose a security threat.
established by the NRC for Class C
radioactive waste. The plan would
include developing a new facility or use
of an existing facility for disposal.
ohibition on Nuclear ExportsSec. 636. Exports of nuclear materials,Sec. 623. Same.This provision is intended to block
iki/CRS-RL33006errorism Sponsors equipment, and sensitive technologyimplementation of a 1994 agreement under which
g/wwould be prohibited to any countryNorth Korea was to receive a U.S.-designed
s.oridentified by the Secretary of State as anuclear power plant in return for abandoning its
leaksponsor of terrorism. The President couldnuclear weapons program. The agreement has
waive the export restriction under certainbeen suspended in light of North Korea’s
://wikiconditions. continuing weapons activities.
httpnal Uranium Stockpile Sec. 638. The Secretary of Energy wouldNo provision.
be authorized to create a national low-
enriched uranium stockpile.
clear Regulatory CommissionSec. 639. Whenever a quorum of theNo provision.


eetings Nuclear Regulatory Commission gathers
to discuss official business, other than at
formal Commission meetings, the
discussions would have to be recorded
and the public notified within 15 days. A
transcript of the recording would be
available to the public upon request
except for information that is exempted
or prohibited from disclosure by law.

CRS-56
sion House Senate Comments
ployee BenefitsSec. 640. Subject to the availability ofNo provision.
funds, workers at DOE’s uranium
enrichment plants at Portsmouth, Ohio,
and Paducah, Kentucky, who were
eligible for certain pension and health
care benefits on April 1, 2005, shall
continue such eligibility.
missioning Pilot ProgramNo provision.Sec. 624. DOE would be required to
establish a program to decommission and
decontaminate the site of the Southwest
Experimental Fast Oxide Reactor
iki/CRS-RL33006(SEFOR) in Arkansas. Funding of $16
g/wmillion would be authorized.
s.or
leak
://wikivanced Reactor Project
http
sion House Senate Comments
vanced Reactor Project Sec. 651. DOE would be authorized toSecs. 631-635. Similar to House
develop, design, construct, and operateprovision. The project would be called
an advanced nuclear reactor to producethe Next Generation Nuclear Plant
hydrogen and electricity, called theProject and could produce electricity,
Advanced Reactor Hydrogenhydrogen, or both. Program plans for
Cogeneration Project. The project wouldthe project would be reviewed by DOEs
be managed by the DOE Office ofNuclear Energy Research Advisory
Nuclear Energy, Science, andCommittee. DOE would be required by
Technology, and the reactor would bethe end of FY2011 to select the
located at the Idaho National Laboratory.technology to be used for high-
The project could be combined withtemperature hydrogen production or
DOE’s existing Generation IV Nuclearnotify Congress of an alternative date. A



CRS-57
sion House Senate Comments
Energy Systems Initiative, which focusesdesign competition would then by held,
on development of advanced nuclearand the target date to complete
power technology. Among otherconstruction would be the end of
requirements, the project should beginFY2021. Funding of $1.25 billion would
producing hydrogen or electricity bybe authorized through FY2015, plus such
2011 unless the Secretary of Energy findssums as necessary from FY2016 through
that goal infeasible. The reactor wouldFY2021.
be licensed and regulated by NRC. Five
projects to demonstrate hydrogen
production at existing nuclear power
plants would also be authorized. Funding
for the program would be authorized at
iki/CRS-RL33006$1.3 billion through FY2015.
g/w
s.orinitionsSec. 652.Advanced nuclear reactorNo provision.
leaktechnologies” and other terms are
defined.
://wiki
http
sion House Senate Comments
clear Facility Threats Sec. 661. In consultation with NRC andNo provision.NRC has been reviewing security requirements at
other appropriate agencies, the Presidentnuclear facilities since the 9/11 terrorist attacks.
would be required to identify types ofThe “design basis threat” that nuclear plant
security threats at nuclear facilities. Thesecurity forces must defend against has been
President would have to issue reports onrevised, and all reactor sites must now conduct
the identified threats and on actions takenforce-on-force security exercises every three
or to be taken to address the threats. years. NRC contends that legislation in this area
NRC would be authorized to revise itsis therefore unnecessary, but others contend that
regulations based on the President’sNRCs security requirements are inadequate.



CRS-58
sion House Senate Comments
threat-identification report. NRC would
be required to conduct periodic force-on-
force exercises to test nuclear facility
security. NRC would be authorized to
issue regulations to protect information
about nuclear facility security, and would
be required to assign a security
coordinator to each NRC region.
ngerprinting for CriminalSec. 662. The existing requirement thatNo provision.
ckground Checks individuals be fingerprinted for criminal
background checks before receiving
iki/CRS-RL33006unescorted access to nuclear power plants
g/w(Atomic Energy Act, Section 149) would
s.orbe extended to individuals with
leakunescorted access to any radioactive
material or property that could pose a
://wikihealth or security threat. Other biometricmethods could be used instead of
httpfi nge r p r i nt i ng.
e of Firearms by NuclearSec. 663. NRC would be authorized toNo provision.Federal law currently authorizes NRC employees
censees allow the use of firearms by securityand contractors to use firearms, but not employees
personnel at nuclear power plants andor contractors of nuclear licensees (Atomic
other facilities licensed or regulated byEnergy Act, Section 161 k.). This provision would
NRC.counter some state laws that preclude private
guard forces from utilizing some weapons.
authorized Introduction ofSec. 664. Existing NRC controls on theNo provision.


ngerous Weapons entry of dangerous weapons or materials
into Commission facilities (Atomic
Energy Act, Section 229a) would be

CRS-59
sion House Senate Comments
extended to commercial nuclear power
plants and other NRC-regulated facilities.
otage of Nuclear Facilities orSec. 665. Maximum penalties forNo provision.
sabotage of licensed nuclear facilities or
materials (Atomic Energy Act, Section
236 a.) would be increased from $10,000
and 10 years in prison to $1 million and
life imprisonment without parole. The
language would clarify that the penalties
could apply to facilities “certified as
well aslicensed” by NRC, and also to
iki/CRS-RL33006sabotage of facilities under construction.
g/wre Transfer of NuclearSec. 666. Nuclear materials transferredNo provision.
s.or or received in the United States pursuant
leakto an import or export license would have
://wikito be accompanied by a detailedmanifest. Every worker involved in such
httpshipments would have to undergo a
federal security background check.
partment of HomelandSec. 667. Before issuing a license for aNo provision.
rity Consultation nuclear power plant, NRC would have to
consult with the Department of
Homeland Security about the
vulnerability of the proposed plant
location to terrorist attack.
thorization of Appropriations Sec. 668. Appropriation of such sums asNo provision.The current fee requirement, imposed by the
necessary to carry out this subtitle wouldOmnibus Budget Reconciliation Act of 1990 (42
be authorized. A statutory requirementU.S.C. 2214), is set to expire September 20, 2005.


that the Nuclear Regulatory Commission

CRS-60
sion House Senate Comments
recover 90% of its costs (minus certain
exceptions) through licensee fees would
be made permanent. NRCs costs in
regulating residual defense radioactive
waste under Section 3116 of the Ronald
W. Reagan National Defense
Authorization Act for Fiscal Year 2005
(50 U.S.C. 2601 note) would be excluded
from costs subject to the 90% cost
recovery requirement.
iki/CRS-RL33006
g/wVehicles and Fuels
s.or
leaksting Programs
://wiki
httpsion House Senate Comments
e of Alternative Fuels bySec. 701. Section 400AA of EPCA wouldSec. 701. Similar provision.The sections of this subtitle refer to alternative
al-Fueled Vehicles be amended to require that all federalfuel and vehicle purchase requirements under the
agencies operate dual-fueled vehicles onEnergy Policy and Conservation Act (EPCA)
alternative fuels or petition the Secretary(P.L. 94-163) and the Energy Policy Act of 1992
of Energy for a waiver from the(EPAct, P.L. 102-486). Under current law,
requirement. agencies are not required to file a petition to be
exempted from the requirement.
el Use Credits No comparable provision.Sec. 702. Would allow agencies toUnder current law, for covered fleets a set
consume alternative fuels in lieu ofpercentage (depending on the type of fleet) of new
making required alternative fuel vehiclelight-duty vehicle purchases must be alternative
purchases under the Energy Policy Act offuel vehicles. For every 450 gallons of biodiesel
1992.(but not other alternative fuels) consumed by a



CRS-61
sion House Senate Comments
covered fleet, that fleet may purchase one fewer
alternative fuel vehicle.
cremental Cost Allocation Sec. 704. Section 303(c) of EPAct allowsSec. 703. Identical provision.
federal agencies to allocate the
incremental cost of required alternative-
fuel vehicles across the whole vehicle
fleet. H.R. 6 would require agencies to
do so.
native Compliance andNo comparable provision.Sec. 704. Would require the Secretary of
ibility Energy to allocate vehicle purchase
iki/CRS-RL33006credits for: the acquisition of hybrid
g/wvehicles; the installation of alternativefuel refueling infrastructure; or other
s.oractions that will reduce petroleum
leak c o nsump t i o n.
://wikie Condensates Sec. 705. Would amend the definition ofNo comparable provision.
httpalternative fuel to include lease
condensate (liquids recovered from
natural gas separation) and fuels derived
from lease condensate. Fleets could
generate one vehicle purchase credit for
the use of a certain volume (to be
determined by the Secretary of Energy)
of lease condensate fuel in medium- and
heavy-duty vehicles. This provision is
similar to the existing credit structure for
the use of biodiesel.
iew of Energy Policy Act ofSec. 706. The Secretary of Energy wouldSec. 1308. Similar provision.


rams be required to conduct a study on the

CRS-62
sion House Senate Comments
effectiveness of the alternative fuel
vehicle programs under EPAct.
Specifically, the Secretary would be
required to assess the effects on vehicle
technology, availability, and cost.
port Concerning ComplianceSec. 707. Would extend through 2020Sec. 705. Identical provision.
Alternative Fuel Vehiclethe requirement that each federal agency
rchasing Requirements report annually (currently required
through 2012) to Congress on its
compliance with EPAct vehicle purchase
requirements.
iki/CRS-RL33006
g/wocurement of Alternativeeled Passenger Automobiles No comparable provision.Sec. 723. Federal fleets not otherwisecovered by the EPAct alternative fuelIn general, the above EPAct requirements apply tofleets of 50 vehicles or more, of which at least 20
s.orvehicle requirements would be mandatedoperate primarily in metropolitan areas.
leakto purchase solely alternative fuel
://wikipassenger automobiles unless there isinsufficient supply of alternative fuel.
http
rement of Hybrid LightNo comparable provision.Sec. 724. Federal agencies with fleets
ty Trucks not otherwise covered by the EPAct
alternative fuel vehicle requirements
would be mandated to purchase solely
hybrid light-duty trucks, unless: those
vehicles cannot meet the fleets
requirements for capabilities; the vehicles
are not commercially available; or the
incremental cost of the hybrid vehicle is
significant. This section would exclude
the Department of Defense from the
requirement.



CRS-63
sion House Senate Comments
initionsNo comparable provision.Sec. 725. Alternative fueled vehicle and
other terms would be defined.
brid Vehicles, Advanced Vehicles, and Fuel Cell Buses
sion House Senate Comments
brid Vehicles Sec. 711. Would require the Secretary ofSec. 721. Similar provision, except that
Energy to accelerate research on$50 million annually would be
technologies for hybrid vehicles. Noauthorized for FY2006 through FY2008.
iki/CRS-RL33006funding authorization is included.
g/w
s.orbrid Retrofit and ElectricSec. 712. The Administrator of theNo comparable provision.
leaknversion Program Environmental Protection Agency (EPA)
would be required to establish a grant
://wikiprogram for the installation of
httptechnologies to retrofit existingcombustion engines with electric or
hybrid systems. Retrofitted vehicles
must achieve federal Low Emission
Vehicle standards. Would authorize a
total of $100 million between FY2005
and FY2007 for the program.
ficient Hybrid and AdvancedSec. 713. The EPA Administrator wouldNo comparable provision.


el Vehicles be required to establish a program to
encourage the domestic production and
sale of efficient hybrid and advanced
diesel vehicles. The program must
include grants to domestic vehicle
manufacturers to encourage production

CRS-64
sion House Senate Comments
and provide consumer purchase
incentives. A total of $3 billion is
authorized between FY2006 and
FY2015.
vanced Vehicles Secs. 721-724. The Secretary of EnergyNo comparable provision.
would be authorized to provide grants to
state governments, local governments,
and metropolitan transit authorities for
the purchase of alternative fuel, hybrid,
fuel cell, and ultra-low sulfur diesel
vehicles (defined in Sec. 721) and the
iki/CRS-RL33006nfrastructure to support them. The
g/wprogram would be administered through
s.orthe Clean Cities Program.
leakSec. 722. Grants would be capped at $20No comparable provision.
://wikimillion per applicant. Between 20% and25% of all grant funds would be used for
httpultra-low sulfur diesel vehicles.
Sec. 723. The Secretary would beNo comparable provision.
required to submit reports to Congress
identifying grant recipients and
evaluating the programs effectiveness.
Sec. 724. $200 million total would beNo comparable provision.
authorized for the grant program.
el Cell Transit BusSec. 731. The Secretary of Energy wouldNo comparable provision.


onstration be required to establish a program to
demonstrate up to 25 fuel cell transit
buses in various localities. $10 million

CRS-65
sion House Senate Comments
annually would be authorized for
FY2006 through FY2010.
int Flexible Fuel/HybridNo comparable provision.Sec. 706. The Secretary of Energy would
icle Commercializationbe required to establish a grant program
itiative for applied research on flexible fuel
hybrid vehicles. A total of $40 million
would be authorized between FY2005
and FY2008.
iki/CRS-RL33006ean School Buses
g/w
s.orsion House Senate Comments
leak
initionsSecs. 741-744. Definitions ofalternativeNo comparable provision.
://wikifuel school bus and other terms are
httpprovid ed.
ogram for Replacement ofSec. 742. A pilot program administeredNo comparable provision.


rtain School Buses Withby the Environmental Protection Agency
ean School Buseswould be established to provide grants to
local governments and contractors that
provide school bus service for public
school systems. Grants would be
provided to aid in the purchase of
alternative fuel and advanced diesel
buses, and the infrastructure necessary to
support them. A total of $200 million
would be authorized for FY2005 through
FY2007, and a maximum of 30% of the

CRS-66
sion House Senate Comments
grant funds could be used to purchase
advanced diesel buses.
ofit ProgramSec. 743. A pilot program would also beNo comparable provision.
established to provide grants for the
development and application of retrofit
technologies for diesel school buses. A
total of $100 million would be authorized
for FY2005 through FY2007.
ol Buses Sec. 744. In addition, a pilot programNo comparable provision.
would be established for the development
iki/CRS-RL33006and demonstration of fuel cell school
g/wbuses. A total of $25 million would beauthorized for FY2005 through FY2007.
s.or
leakel Truck Retrofit and FleetSec. 743A. The EPA AdministratorSecs. 751-757. The EPA Administrator
://wikiization Program would be required to establish a programto provide grants (administered by statewould be required to establish a programto provide grants and loans for diesel
httpor local governments) to modernizeengine retrofits. Would require EPA to
cargo truck operations. Grants would beprovide grants and loans for retrofits of
used to retrofit pre-1999 vehicles withvarious types of engines including buses,
advanced emissions control devices. Aheavy-duty trucks, locomotives, and
total of $100 million would be authorizedmarine engines. Would require EPA to
between FY2005 and FY2007.support grant and loan programs
administered by the states. Would
require a report to Congress evaluating
the implementation of the programs.
$200 million would be authorized
annually for FY2006 through FY2010.



CRS-67
scellaneous
sion House Senate Comments
ilroad Efficiency Sec. 751. A public-private researchSec. 731. Similar provision.
partnership would be established for the
development and demonstration of
locomotive engines that increase fuel
economy, reduce emissions, and lower
costs. A total of $110 million would be
authorized for FY2006 through FY2008.
bile Emission ReductionsSec. 752. Within 180 days of enactment,No provision.
iki/CRS-RL33006adingthe EPA Administrator would be requiredto submit a report to Congress on EPAs
g/wexperience with the trading of mobile
s.orsource emission reduction credits to
leakstationary sources to meet emission offset
requirements within Clean Air Act
://wikinonattainment areas.
http
iation Fuel Conservation andSec. 753. This section would require theNo provision.


issions Federal Aviation Administration and
EPA to initiate a joint study of the impact
of aircraft emissions on air quality in
Clean Air Act nonattainment areas, ways
to promote fuel conservation measures
and reduce emissions, and opportunities
to reduce air traffic inefficiencies that
increase fuel burn and emissions within
60 days of the date of enactment, and to
report the results to Congress within one
year of initiating the study.

CRS-68
sion House Senate Comments
el Fueled Vehicles Sec. 754. The Secretary of Energy wouldSec. 722. Similar provision, except thatThe Tier 2 light-duty vehicle emissions standards
be required to accelerate research on$75 million would be authorizedwill be phased in between model years 2004 and
emissions control technologies for dieselannually for FY2006 through FY2008.2009. The heavy-duty diesel engine standards
motor vehicles. The objective of thewill be phased in beginning in 2007.
research would be to enable diesel
technology to meet, not later than 2010:
Tier 2 light-duty vehicle emission
standards; and model year 2007 heavy-
duty vehicles. No new funding would
be authorized.
nserve by Bicycling Program Sec. 755. The Department ofSec. 732. Similar provision, except that
iki/CRS-RL33006Transportation (DOT) would be directedthe cost-sharing requirement could be
g/wto conduct up to 10 pilot bicyclingmet by anynon-federal sources.”
s.orprojects to conserve energy. A minimum
leakof 20% of each project’s costs would
have to be provided by state or local
://wikisources. Also, DOT would be directed toengage the National Academy of
httpSciences to conduct a research study on
the feasibility of converting motor
vehicle trips to bicycle trips.
duction of Engine Idling ofSec. 756. EPA would be required toSec. 733. Similar provision.


y-Duty Vehicles study whether existing air emission
models accurately reflect emissions from
idling vehicles. Further, EPA would be
required to establish a program to support
the deployment of idle-reduction
technologies. A total of $95 million
would be authorized for FY2006 through
FY2008 for the deployment program.

CRS-69
sion House Senate Comments
odiesel Engine TestingSec. 757. The Secretary of Energy wouldSec. 734. Similar provision.
ogram be required to study the effects of
biodiesel and biodiesel blends on current
and future emissions control
technologies. $5 million would be
authorized annually for FY2006 through
FY2010.
gh Occupancy VehicleSec. 758. The Transportation Equity ActstNo comparable provision.Through September 30, 2003, states had the
ception for the 21 Century (TEA-21, P.L. 105-authority to exempt certain types of alternative
178) would be amended to allow states tofuel vehicles from the restrictions. However,
exempt hybrid and dedicated alternativehybrid vehicles and some alternative fuel vehicles
iki/CRS-RL33006fuel vehicles from high occupancydid not qualify. As the existing authorization has
g/wvehicle (HOV) restrictions. expired, states do not currently have the authority
s.orto exempt any type of alternative fuel vehicle from
leakHOV restrictions.
://wikiEfficient Enginechnology for Aircraft Sec. 759. The Secretary of Energy, incooperation with the NationalNo comparable provision.


httpAeronautics and Space Administration,
would be required to develop new engine
technology for aircraft with a goal of a
10% increase in fuel efficiency and a
70% decrease in nitrogen oxide
emissions during takeoff and landing. A
total of $225 million would be authorized
between FY2006 and FY2010.

CRS-70
tomobile Efficiency
sion House Senate Comments
el Economy StandardsSec. 771. Would authorize $2 millionSec. 712. Same, except $5 million
annually during FY2006-FY2010 for theannually.
National Highway Traffic Safety
Administration (NHTSA) to carry out fuel
economy rulemakings.
creased fuel economyNo comparable provision.Sec. 712. This would require the
ndardsSecretary of Transportation to issue new
CAFE standards for light-duty trucks by
iki/CRS-RL33006April 1, 2006. These would applybeginning with MY2007. Final
g/wregulations for increasing passenger
s.orautomobile fuel economy would be
leakrequired not later than 30 months after
enactment of the legislation.
://wiki
httpiteria to be taken into accountSec. 772. Would expand the criteria thatSec. 711. Would add more criteria than
g maximum feasible fuelthe agency would be required to take intothe House bill, including the extent to
omy standards.account in setting maximum feasible fuelwhich advanced technologies might
economy for cars and light trucks,achieve significant reductions in fuel
including the effects of prospectiveconsumption and the extent to which
standards on vehicle safety and automotivemeeting higher CAFE standards might
industry employment.divert resources from developing these
advanced technologies.
pedited procedures forNo comparable provision.Sec. 713. In the event that the Secretary
ngressional increase in fuelof Transportation does not promulgate
omy standards.new standards (as specified in Sec. 712),
the Senate bill would provide expedited
procedures for passage of legislation by
Congress to set new CAFE standards.



CRS-71
sion House Senate Comments
tension of maximum fuelSec. 773. Would also extend corporateSec. 714. Would also extend corporate
omy increase for alternativeaverage fuel economy (CAFE) credits thataverage fuel economy (CAFE) credits
eled vehicles.accrue to manufacturers of dual-fueledthat accrue to manufacturers of dual-
vehicles. The cap to the credit of 1.2 milesfueled vehicles. The cap to the credit of
per gallon (mpg) earned by any individual1.2 miles per gallon (mpg) earned by any
manufacturer would be extended to modelindividual manufacturer would be
year (MY) 2010. It was otherwiseextended to MY2008. The bill would
scheduled to drop to a cap of 0.9 mpgpostpone institution of the 0.9 cap until
beginning in MY2005. The bill wouldMY2009 and authorize it through
postpone institution of the 0.9 cap untilMY2012.
MY2011 and authorize it through
MY2014.
iki/CRS-RL33006
g/wudy about significantlySec. 774. Would require the National Sec. 1309. Similar to the House bill, but
s.orucing gasoline consumptionHighway Traffic Safety Administration togoal is achieving the “significant
leak model year (MY) 2012.explore the feasibility and effects ofreduction by 2012.
reducing automobile fuel consumptiona
://wikisignificant percentage” by MY2014.
httpjustment to estimated in-useSec. 775. Would require adjustment ofNo comparable provision.
el economy posted on newtested fuel economy levels so that
hicles.estimates posted on new vehicles would be
closer to experience. Adjustments would
include use of air conditioning, higher
speed limits, and faster acceleration rates.
dy of link between energyNo comparable provisionSec. 1336. Requires study by the
rity and increases in vehicleNational Academy of Sciences with a
traveled.similar objective to the study specified in
Sec. 1309, but would examine links
between and development patterns and
vehicle miles traveled (VMT), and
whether VMT and the number of vehicle



CRS-72
sion House Senate Comments
trips can be reduced by better planning,
design, development and infrastructure
decisions by state and local officials
Hydrogen
sion House Senate Comments
initionsSec. 801. Definitions offuel cell” andSec. 801. Would amend and reauthorizeSpark M. Matsunaga Hydrogen Research,
iki/CRS-RL33006other terms are provided.the Spark M. Matsunaga HydrogenResearch, Development, andDevelopment, and Demonstration Act of 1990 (42U.S.C. 12401 et seq.) authorizes hydrogen and
g/wDemonstration Act of 1990 (42 U.S.C.fuel cell research at the Department of Energy.
s.or12401 et seq.). Funding levels were authorized through FY2001,
leakalthough research is ongoing.
://wikianSec. 802. Would require the Secretary ofNo comparable provision.
httpEnergy to develop a plan for the
development of hydrogen fuel and fuel
cells.
teragency Task Force andSecs. 804 and 805. Would establish anSec. 102 (of the amended MatsunagaCurrent law established a Hydrogen Technical
visory CommitteeInteragency Task Force to coordinateAct). Would establish an InteragencyAdvisory Panel to advise the Secretary on
federal research (Sec. 804), and wouldHydrogen and Fuel Cell Technical Taskprograms under the Act. Further, the Act gives
establish a Hydrogen Technical and FuelForce to advise the Secretary on thethe Secretary the authority to consult with other
Cell Advisory Committee to advise theimplementation of the act. Would alsoagencies, but does not require the Secretary to do
Secretary and review the developmentestablish a Technical Advisoryso.


plan (Sec.805).Committee to provide technical
assistance to the Secretary and the task
fo rce.

CRS-73
sion House Senate Comments
ternal ReviewSec. 806. DOEs plans for the hydrogenNo comparable provision.
program would be reviewed by the
National Academy of Sciences.
eous ProvisionSec. 807. The Secretary of Energy wouldNo comparable provision.
be authorized to represent U.S. interests
related to hydrogen programs
domestically and internationally in
coordination with relevant federal
agencies.
vings ClauseSec. 808. Specified authorities of theNo comparable provision.
iki/CRS-RL33006Secretary of Transportation would not be
g/waffected.
s.orthorization of AppropriationsSec. 809. A total of $4 billion would beSec. 801. A total of $3.3 billion would
leakauthorized for FY2006 through FY2010be authorized for FY2006 through
://wikifor all hydrogen and fuel cell research,development, and demonstrationFY2010 in the following areas: $1.06billion for hydrogen supply research and
httpactivities.development (Sec. 104 of the amended
Act); $0.86 billion for fuel cell research
and development (Sec. 104); $1.31
billion for demonstration programs (Sec.
202); $0.04 billion for codes and
sta nd a r d s.
lar and Wind Technologies Sec. 810. Would create program of fiveNo comparable provision.


pilot projects to demonstrate the use of
solar energy to produce hydrogen.
Further, would create a program of five
pilot projects to demonstrate the use of
wind energy to produce hydrogen. DOE
would be directed to support research

CRS-74
sion House Senate Comments
programs at universities that study the
use of solar and wind energy
technologies to produce hydrogen.
drogen Fuel Cell Buses Sec. 811. The Secretary of Energy,No comparable provision.
through the Advanced Vehicle
Technologies Program, would be
required to establish four fuel cell bus
demonstration sites.
initionsNo comparable provision.Sec. 741. Provides definitions for
Sections 742 and 743.
iki/CRS-RL33006d State ProcurementNo comparable provision.Sec. 742. All federal agencies that use
g/w Fuel Cell Vehicles andlight- or heavy-duty vehicles would be
s.ordrogen Energy Systems required to lease or purchase fuel cell
leakvehicles and hydrogen energy systems.
://wikiThe Secretary of Energy would berequired to pay federal agencies the
httpincremental cost of the new systems. The
Secretary of Energy would be permitted
to establish cooperative program with
state agencies to encourage the purchase
of fuel cell vehicles. A total of $105
million would be authorized between
FY2006 and FY2008.
deral Procurement ofNo comparable provision.Sec. 743. All federal agencies that use
ary, Portable, and Microelectrical power from stationary,
el Cells portable, or microportable devices would
be required to lease or purchase
stationary, portable, or micro fuel cells.
The Secretary of Energy would be



CRS-75
sion House Senate Comments
required to pay or share the cost of the
new systems. The Secretary of Energy
would be permitted to establish
cooperative program with state agencies
to encourage the purchase of fuel cell
vehicles. A total of $345 million would
be authorized between FY2006 and
FY2010.
Research and Development
iki/CRS-RL33006
g/wsion House Senate Comments
s.or
leakort Title; DefinitionsSec. 900. This title would be referred toSecs. 901-903. Same short title as House
as the “Energy Research, Development,bill. Defines departmental mission,
://wikiDemonstration, and CommercialHispanic-serving institution, nonmilitary
httpApplication Act of 2005.” Defines, forenergy laboratory, part B institution, and
the purposes of this title, the termssingle-purpose research facility. DOE
applied programs, biomass, Department,would be required to publishmeasurable
departmental mission, institution ofcost and performance-based goals for
higher education, National Laboratory,each major energy R&D area.
renewable energy, Secretary, State,
university, and user facility.
pport for Science and EnergyNo comparable provision.Sec. 963. DOE would be required to
d Infrastructuredevelop a strategy for science and energy
R&D infrastructure and describe the
strategy in the FY2007 budget request.



CRS-76
sion House Senate Comments
fice of Science Programs Sec. 901. The programs of the Office ofNo similar provision.
Science would be authorized in general,
and DOE would be directed to commence
construction of the Rare Isotope
Accelerator no later than September 30,
2008. Expenditures on the Rare Isotope
Accelerator prior to operation would be
limited to $1.1 billion.
iki/CRS-RL33006stems Biology Programouse) / Genomes to LifeSec. 902. DOE would be directed toestablish a program of research,Sec. 968. DOE would be directed tocarry out a program of research,
g/wogram (Senate) development, and demonstration indevelopment, demonstration, and
s.orgenetics, protein science, andcommercial application in microbial and
leakcomputational biology, with specifiedplant systems biology, protein science,
goals. DOE would have to submit aand computational biology, with
://wikiresearch plan for this program tospecified goals, to be known as the
httpCongress within one year and contractGenomes to Life Program.” DOE
with the National Academy of Scienceswould have to prepare a program plan
to review the plan within an additional 18and update its short-term goals each year
months. Biomedical research andtogether with the annual budget
research related to humans would not besubmission.
permitted as part of the program.
talysis Research andSec. 903. DOE would be directed toSec. 964. Similar to the House provision.
velopment Program conduct a program of R&D in catalysisProgram content would be specified in
science.more detail. In addition, a triennial
assessment of the program by the
National Academy of Sciences would be
requir ed.



CRS-77
sion House Senate Comments
drogen Sec. 904. DOE would be directed toSec. 965. In addition to the House
conduct a program of fundamental R&Dlanguage, the hydrogen program would
in support of the hydrogen programsbe required to include support for
authorized in Title VIII.generating hydrogen without the use of
natural gas.
lid State Lighting No similar provision.Sec. 966. DOE would be directed to
conduct a program of research on
advanced solid state lighting in support
of the initiative established by Sec. 912.
vanced Scientific ComputingSec. 905. DOE would be directed toSec. 967. Similar to the House provision,
iki/CRS-RL33006search conduct a program of R&D in advancedwith the addition of advanced
g/wscientific computing, including appliedmathematics and the activities authorizedvisualization techniques as one of thegoals of the program. In addition, Sec.
s.orby the Department of Energy High-End203 of the High-Performance Computing
leakComputing Revitalization Act of 2004Act of 1991 (15 U.S.C. 5523) would be
://wiki(P.L. 108-423).amended as follows: DOE’s generalresponsibilities as part of the interagency
httpNational High-Performance Computing
Program would be modified; DOE would
no longer be required, as part of that
program, to establish consortia, engage in
technology transfer, or submit an annual
report (but these activities would not be
prohibited); and the authorization of
appropriations for the program for fiscal
years already completed would be
replaced by a general authorization of
such sums as are necessary.”



CRS-78
sion House Senate Comments
sion Energy SciencesSec. 906. Research, development,Sec. 962. Similar to the House provision. The United States withdrew from the design phase
ogram demonstration, and commercialIn addition, DOE would be directed toof ITER in 1998 at congressional direction,
application directed at competitiveness ininclude in the fusion policy plan, to thelargely because of concerns about cost and scope.
fusion energy, including a demonstrationextent possible, the recommendations onThe project has since been restructured, and in
of the utilization of fusion energy toworkforce planning that were made inJanuary 2003, the Administration announced its
produce electric power or hydrogen,March 2004 by DOEs Fusion Energyintention to reenter the project. Other international
would be declared to be U.S. policy.Sciences Advisory Committee. partners include the European Union, Japan,
DOE would be directed to submit a planRussia, China, and South Korea. A site in France
to carry out that policy. Authority wouldwas officially selected on June 28, 2005.
be given for the United States to
participate in the international fusion
energy experiment known as ITER
iki/CRS-RL33006(International Thermonuclear
g/wExperimental Reactor). DOE would be
s.ordirected to develop a plan for ITER
leakparticipation and have it reviewed by the
National Academy of Sciences. Funds
://wikicould not be expended for ITER
httpconstruction until the plan and other
reports were provided to Congress. If
construction of ITER appeared unlikely,
DOE would be directed to submit a plan
for a domestic burning plasma
experiment.
ssion and Fusion EnergyNo similar provision.Sec. 969. DOE would be directed to
Research Program establish a program of R&D on materials
science for advanced fission reactors and
DOEs fusion energy program.



CRS-79
sion House Senate Comments
ergy-Water SupplyNo similar provision.Sec. 970. A program would be
chnologies Program established, within the Biological and
Environmental Research program of the
DOE Office of Science, to study energy-
related issues associated with water
supply and water supply issues related to
energy production. Arsenic removal,
desalination, and water resource
sustainability would be among the areas
to be investigated. Research projects
under this section would not require cost-
sharing, despite Sec. 1002 (see below),
iki/CRS-RL33006but demonstration projects would.
g/w
s.orallation Neutron Source No similar provision.Sec. 971. DOE would be directed toConstruction of the Spallation Neutron Source, a
leaksubmit to Congress an annual progressresearch facility at Oak Ridge National
report on the Spallation Neutron SourceLaboratory, is expected to be completed during
://wikiand develop an operational plan for thefacility that meets specified requirements. FY2006.
httpAppropriations would be authorized for
the lifetime of the project overall and for
certain related items in FY2006, FY2007,
and FY2008.
ce and TechnologySec. 907. DOE would be authorized toNo similar provision.


holarship Program establish a scholarship program to help
recruit and prepare students for careers in
DOE. Scholarship recipients would be
required to work for DOE for 24 months
per academic year of scholarship
received.

CRS-80
sion House Senate Comments
orkforce Trends andNo comparable section.Sec. 1101. Would require Secretary
aineeship Grants report to Congress, within 1 year, on
current trends under trends in the
workforce in skilled technical personnel
that support energy technology
industries; and electric power and
transmission engineers; and establish
grant programs to enhance training for
any workforce category for which a
shortage is identified or predicted.
ergy Research FellowshipsNo comparable section.Sec. 1102. Would establish a
iki/CRS-RL33006Postdoctoral Fellowship Program to
g/wencourage outstanding young scientists
s.orand engineers to pursue postdoctoral
leakresearch appointments in energy research
and development at institutions of higher
://wikieducation of their choice.
httpucational Programs inNo comparable section.Sec. 1103. Would amend the Department
ce and Mathematics of Energy Science Education
Enhancement Act (42 U.S.C. 7381a) by
requiring the Energy Secretary to use not
less than 0.2 percent of the amount made
available to DOE for fiscal year 2006 and
each fiscal year thereafter to carry out
authorized activities. The section would
also amend 42 U.S.C. 7381b by adding
provisions for competitive events for
students, competitively-awarded, peer-
reviewed programs to promote
professional development for math and
science teachers, summer internships for



CRS-81
sion House Senate Comments
teachers. The Energy Secretary would
enter into an arrangement with the
National Academy of Public
Administration to conduct a study of the
priorities, quality, local and regional
flexibility, and plans for educational
programs at Department research and
development facilities.
proved Access to Energy-No comparable section.Sec. 1106. Would amend the Department
Scientific and Technicalof Energy Science Education
reers. Enhancement Act (42 U.S.C. 7381a) by
iki/CRS-RL33006adding at the end the following:
g/wPrograms for Students from Under-
s.orrepresented Groups; and Partnerships
leakwith Historically Black Colleges and
Universities, Hispanic- Serving
://wikiInstitutions, and Tribal Colleges.
httpfice of Scientific andSec. 908. DOE would be directed toNo similar provision.
nical Information maintain the Office of Scientific and
Technical Information.
ce and Engineering PilotSec. 909. DOE would be directed toNo similar provision.


ogram award a grant to Oak Ridge Associated
Universities to establish a regional pilot
program to enhance scientific,
technological, engineering, and
mathematical literacy, creativity, and
decisionmaking. The program would
involve research universities, universities

CRS-82
sion House Senate Comments
that train elementary and secondary
school teachers, and DOE national
laboratories. A report would be required
on lessons learned from the pilot
program, including a plan for expanding
the program nationwide.
thorization of Appropriations Sec. 910. Appropriations would beSec. 961. Appropriations would beSee also Senate Secs. 967 and 971 above
authorized for the Office of Science forauthorized for the Office of Science forregarding authorization of appropriations for the
FY2006 through FY2010, with increasesFY2006 through FY2008, at levelsAdvanced Scientific Computing Research
of 10%-15% per year. Within thesesomewhat higher than in the House bill. program and the Spallation Neutron Source
totals, appropriations would beWithin these totals, appropriations wouldfacility, both of which are in the Office of
iki/CRS-RL33006authorized for the individual programsbe authorized for the individual programsScience.
g/wdescribed in Secs. 902, 905, 906 (exceptdescribed in Secs. 962, 964, 968, and
s.orITER), 907, 908, and 909.970.
leakAppropriations for construction of ITER
would be authorized separately, as would
://wikiappropriations for integrated bioenergyR&D for FY2005 through FY2009.
http
dministration and Operations
sion House Senate Comments
st Sharing Sec. 911. Cost sharing would be requiredSec. 1002. Cost sharing would be
for programs carried out under this title.required activities under this title. Not
The minimum non-federal share wouldless than 20 % of the cost R&D activity
be 20% for R&D programs and 50% forwould provided by a non-Federal source,
demonstration and commercialand 50% for demonstration or
application programs, but DOE couldcommercial application activity. DOE
lower or waive these requirements incould reduce the non-Federal share in



CRS-83
sion House Senate Comments
certain circumstances.consideration of any technological risk.
This section would not apply to a
cooperative R&D agreement under the
Stevenson-Wydler Technology
Innovation Act.
programming Sec. 912. Within 60 days after anyNo comparable section.
appropriation authorized under this title,
DOE would be required to report to
Congress on how the appropriated
amounts would be distributed.
Subsequent reprogramming would be
iki/CRS-RL33006limited to the lesser of 2% or $2 million
g/wunless reported to Congress with at least
s.or30 days notice.
leakit-Based Competition Sec. 913. Awards of funds authorizedSec. 1003. Awards of funds authorized
://wikiunder this title would be permitted onlythrough open competitions following anunder this title would be made only afteran impartial review of the scientific and
httpimpartial review of scientific andtechnical merit.
technical merit.
ternal Technical Review ofSec. 914. Advisory committees would beSec. 1004. Advisory boards would be
partmental Programs established for DOE programs in energyestablished to review DOE research,
efficiency, renewable energy, nucleardevelopment, demonstration, and
energy, and fossil energy. Thecommercial application programs. The
requirement could be met by existingscientific program advisory committees
DOE committees. Existing advisorychartered under the Federal Advisory
committees would continue for theCommittee Act would continue to used
programs of the Office of Science, andby the Office of Science to oversee
the chairs of the Office of Scienceresearch and development programs
committees would constitute a Scienceunder that Office. DOE would also enter
Advisory Committee for the Director ofinto arrangements with the National



CRS-84
sion House Senate Comments
the Office. DOE would be directed toAcademy of Sciences to conduct periodic
arrange with the National Academy ofreviews and assessments of the
Sciences to review and assess theauthorized programs. The Secretary of
programs authorized by this title, andEnergy would report to Congress
reports on the results of these reviewsdescribing the results of all the reviews
and assessments would be due toand assessments.
Congress within two years of enactment.
mpetitive Award ofSec. 915. Management and operatingNo comparable section.In the past, management contracts at most DOE
anagement Contracts contracts for DOE national laboratorieslaboratories have been extended without
(except Livermore, Los Alamos, Sandia,competition. In some cases, laboratories have been
and Savannah River) would have to bemanaged by the same contractor for 60 years or
iki/CRS-RL33006awarded competitively unless themore. In November 2003, DOE released the report
g/wSecretary of Energy granted a waiver onof a blue-ribbon commission that it established to
s.ora case-by-case basis. The Secretaryexamine this issue. The commissions report is
leakwould not be permitted to delegate hisavailable online at [http://www.seab.doe.gov/
waiver authority and would have topublications/brcDraftRpt.pdf]. It states that “the
://wikinotify Congress at least 60 days beforeawarding a non-competitive contract.issue of whether competition should be routinelyused for research and development laboratories is
httpsubject to wide and varied opinions.
nal LaboratorySec. 916. DOE would be prohibited fromNo comparable section.
signation designating additional facilities as
national laboratories, beyond those
defined in Sec. 900.
port on Equal EmploymentSec. 917. DOE would be required toNo comparable section.


unity Practices report to Congress with one year and
every two years thereafter on equal
employment opportunity practices at the
national laboratories.

CRS-85
sion House Senate Comments
Facility Best Practices Plan Sec. 918. No DOE facility would beNo comparable section.DOE user facilities are available to outside
permitted to begin operating as a userresearchers.
facility unless DOE had developed and
transmitted to Congress a plan for
staffing the facility, allocating time fairly
to its users, and operating it in a safe and
fiscally prudent manner.
pport for Science and EnergySec. 919. DOE would be directed toNo comparable section.
frastructure and Facilities develop and implement a strategy for
maintaining existing facilities and
infrastructure, closing unnecessary
iki/CRS-RL33006facilities, modifying facilities, and
g/wbuilding new facilities. A report to
s.orCongress would be required by June 1,
leak2007, summarizing the strategy.
://wikination Plan Sec. 920. DOE would be directed todevelop a plan to improve coordinationNo comparable section.


httpand collaboration in research,
development, demonstration, and
commercial application activities across
DOE organizational boundaries. A
conference of program managers from
the Office of Science and the applied
programs would be convened as part of
the process of developing this plan. DOE
would be required to transmit the plan to
Congress within nine months and
transmit a revised version every two
years thereafter.

CRS-86
sion House Senate Comments
proved Technology TransferNo comparable section.Sec. 1005. A Technology Transfer
Energy TechnologiesCoordinator would be appointed as
principal advisor on all matters relating
to technology transfer and
commercialization. A Technology
Transfer Working Group, would be
established consisting of representatives
of the National Laboratories and research
facilities. An Energy Technology
Commercialization Fund, using 0.5% of
the amount made available to DOE for
each fiscal year, would be used to
iki/CRS-RL33006provide matching funds with private
g/wpartners to promote promising
s.ortechnologies for commercial purposes.
leakNot later than 180 days after enactment
of this title, the Energy Secretary would
://wikireport to Congress on a technology
httptransfer execution plan, with updates
yearly.
nology infrastructureNo comparable section.Sec. 1006. DOE would establish a new
ramprogram to improve the ability of
National Laboratories and research
facilities to support the Energy
Departments missions by stimulating
the development of technology clusters;
improving National
Laboratories/facilities abilities to benefit
from commercial research, technology,
products, processes, and services; and
encourage the exchange between
National Laboratories/facilities and non-



CRS-87
sion House Senate Comments
federal entities. The Secretary would
report on the program by July 1, 2008.
proved coordination andNo comparable section.Sec. 1010. Would add an Under
nagement of civilian scienceSecretary for Energy and Science who
d technology programswould monitor the research and
development programs of the
Department, reconfigure the position of
Director of the Office of Science to an
Assistant Secretary level, and an
additional Assistant Secretary position to
enable improved management of nuclear
iki/CRS-RL33006energy issues.
g/wailability of Funds Sec. 921. Funds authorized under thisSec. 1001. Funds authorized would
s.ortitle would remain available for threeremain available until expended.
leakyears.
://wikinship to Other Laws.No comparable section.Sec. 1009. The research, development,
httpdemonstration, and commercial
application programs, projects, and
activities authorized by this Act would be
conducted according to applicable
provisions of the Atomic Energy Act;
the Federal Nonnuclear Energy Research
and Development Act; the Energy Policy
Act; the Stevenson-Wydler Technology
Innovation Act,and the “Bayh-Dole Act.”
izes for Achievement inNo comparable section.Sec. 1012. Would authorize a program to
and Challenges of Scienceaward cash prizes in recognition of
d Technology.breakthrough achievements in research,
development, demonstration, and



CRS-88
sion House Senate Comments
commercial application that have the
potential for application to the
performance of the mission of the
Dep a rtme nt.
nical Corrections.No comparable section.Sec. 1013. Would amend language in the
Coal Research and Development Act of
1960, and the Federal Nonnuclear Energy
Research and Development Act of 1974
to reflect update terms and titles.
iki/CRS-RL33006gy Efficiency — Vehicles, Buildings, and Industries
g/w
s.or
leaksion House Senate Comments
://wikiograms Sec. 922. General objectives would beNo similar provision.
httpset for DOE energy efficiency programsin terms of energy security, reduced
costs, and environmental impacts. A
report would be required to provide cost
and performance baselines and set
quantitative targets for energy and cost
savings over five fiscal years.
ergy Efficiency ScienceNo similar provision.Sec. 915. DOE would be required to
itiative establish an energy efficiency research
program, with grants to be competitively
awarded and subject to peer review. A
report to Congress would be required that
is included in the Presidents annual



CRS-89
sion House Senate Comments
budget request and describes the process
used to award funds.
icles Sec. 923. DOE would be directed toNo similar provision.
conduct a research, development,
demonstration, and commercial
application (RDD&C) program for
hybrid and electric vehicles, advanced
engines, advanced materials, and
advanced drivetrains. Also, a hydrogen
propulsion and infrastructure RDD&C
program would be established.
iki/CRS-RL33006
g/wildings Sec. 924 (a) and (b). This provisionwould direct DOE to conduct an RDD&CNo similar provision.
s.orprogram to improve the energy efficiency
leakand environmental performance of
://wikicommercial, industrial, institutional, andresidential buildings. This program is to
httpinclude advanced controls, building
envelope, building components (e.g.
lighting, appliances), and onsite
renewable energy use. Also, a pilot grant
program would be created to help
businesses and organizations demonstrate
energy efficiency technologies for
buildings. It would provide up to 50% of
design and energy modeling costs, with a
maximum of $50,000.
h Performance BuildingSec. 924 (c). DOE would be directed toSec. 916. Same provision, except that the
ards work with the National Institute oftechnical assistance and grants program
Building Sciences to prepare a report thatwould be required to comply with the



CRS-90
sion House Senate Comments
assesses the effectiveness of voluntaryNational Technology Transfer and
building energy performance standards. Advancement Act of 1995 and
After receiving the report, DOE would beamendments thereto.
required to establish a program of
technical assistance and grants to support
revisions of existing standards.
nal Building PerformanceNo similar provision.Sec. 913. Would direct the Department
itiative of Commerce, in coordination with DOE,
to establish an interagency task group
that would create a plan to integrate work
among federal, state, and voluntary
iki/CRS-RL33006organizations to improve the energy
g/wefficiency performance of buildings. A
s.orreport to Congress on the findings of the
leakplan would be required.
://wikitional Center for Energyanagement and BuildingNo similar provision.Sec. 1105. Would direct DOE to supportongoing activities of the Center in
httpchnologiesresearch, education, and training focused
on energy efficiency for buildings.
dustries Sec. 925. Would direct DOE to conductNo similar provision.


an RDD&C program to improve the
energy efficiency, environmental
performance, and process efficiency of
energy-intensive and waste-intensive
industries. This program would include
RDD&C on advanced control devices to
improve the efficiency of electric motors,
including those used in industrial
settings.

CRS-91
sion House Senate Comments
onstration and CommercialSec. 926. DOE would be directed toNo similar provision.
plication consider applying more efficient
technologies to improve the energy
efficiency of equipment and test
procedures used to measure appliance
energy efficiency. Further, DOE would
be required to coordinate with public and
private organizations to study means of
updating building energy codes. Also, a
DOE grant program (50% federal match)
would be established to support state and
local governments, universities, and
iki/CRS-RL33006nonprofit organizations to create a
g/wnetwork of Advanced Energy
s.orTechnology Transfer Centers.
leakAdditionally, this section would require
that a periodic report to Congress be
://wikiprepared on activities generated by the
httpforegoing provisions.
dary Electric VehicleSec. 927. A program would beSec. 914. Same provision, except that
tery Use Program established at DOE for RDD&C onproject proposers would be required to
applications for worn out electric vehiclesatisfy a 20% cost share set by Section
batteries for utility and commercial1002, which also allows the Secretary of
power storage and power quality. A 50%DOE to waive the requirement under
cost share by the project proposer (e.g.certain conditions.
state or local government, manufacturer)
would be required.
xt Generation LightingSec. 928. A DOE program would beSec. 912. Same provision.


itiative created that aims to develop advanced
white light-emitting diodes (LEDs) for
high efficiency lighting. These LEDs are

CRS-92
sion House Senate Comments
expected to be more efficient than
incandescent and fluorescent lights.
Also, DOE would be directed to arrange
for the National Academy of Sciences to
conduct periodic reviews of the initiative.
initions Sec. 929. Would define the phrasecost-No similar provision.
effective” in terms of simple payback
within 10 years and definewhole-
buildings approach” in terms of a life-
cycle basis for energy use and costs.
iki/CRS-RL33006thorization of Appropriations Sec. 930. For the preceding sections ofSec. 911 (a), (b), (c). For the other
g/wSubtitle C, this provision would set outauthorization figures for FY2006 throughsections of Subtitle A, this provisionwould set out authorization figures for
s.orFY2010. FY2006 through FY2008.
leak
://wikimitation on Use of Funds Sec. 931. This section would prohibit theuse of funds authorized by Sec. 930 forSec. 911(d). This section would prohibitthe use of funds authorized by Sec. 911
httpenergy efficiency regulations and for(a), (b), (c) for energy efficiency
DOE’s Weatherization, State Energy, andregulations and for DOE’s
Federal Energy Management Programs.Weatherization, State Energy, and
Federal Energy Management Programs.
Efficiency — Distributed Energy and Electric Energy Systems
sion House Senate Comments
stributed Energy Sec. 932(a), (c). Would authorize a DOE No similar provision.


RDD&C program for a variety of
technologies that include the integration

CRS-93
sion House Senate Comments
of renewable energy, fuel cells, combined
heat and power (CHP), microturbines,
and other equipment. Also, DOE would
be directed to report to Congress on
outcome measures that cover five-year
cost and energy-saving performance
b a selines.
stributed Energy TechnologyNo similar provision.Sec. 924. Would require DOE to provide
onstration Program financial assistance to consortia for
demonstrations to accelerate the use of
distributed energy technologies.
iki/CRS-RL33006
g/wicro-Cogeneration Sec. 932(b). Would direct DOE toestablish competitive, merit-based grantsSec. 923. Same provision.
s.orto consortia to develop micro-
leakcogeneration technology, including
://wikisystems that could be used for residentialheating.
http
Transmission andSec. 933. Would authorize a DOESec. 925. Would authorize a DOE
stribution and EnergyRDD&C program addressing energyRDD&C program addressing efficiency,
ance efficiency, reliability, and security of thereliability, and environmental integrity.
nations electric transmission andA technology development program
distribution system. A technologywould have the same features as that in
development program would focus onthe House bill. DOE would be directed
delivery and storage, grid reliability, loadto devise a five-year plan and consider
reduction, high temperature supercon-using a consortium with industry,
ductivity, and others. Further, a report university, and national laboratory
to Congress would be required, whichmembers to implement the program. A
covers outcome measures with five-yearreport to Congress would be required that
cost and energy-saving performancedescribes progress and identifies needs
baselines. A university grant programfor additional resources. Also, the



CRS-94
sion House Senate Comments
would be created that works with theprovision would establish a Power
Tennessee Valley Authority on aDelivery Research Initiative focused on
program to improve power flow throughsuperconductivity and a Transmission
high voltage transmission lines.and Distribution Grid Planning Initiative
focused on software tools to expand
T&D in a competitive market setting.
vanced Portable PowerSec. 933A. DOE would be directed toNo similar provision.
ices establish an RDD&C program for small-
scale mechanical and electromechanical
devices that can be used for
communications, mobility enhancement,
iki/CRS-RL33006medical needs, and other purposes.
g/wFurther, the provision would direct DOE
s.orto utilize the resources of universities that
leakhave demonstrated capability to develop
these devices for civilian or military use.
://wikigh Power Density IndustryNo similar provision.Sec. 922. This provision would direct
httpogram DOE to establish an RDD&C program to
improve the energy efficiency of data
centers, computer server farms, and
telecommunications facilities.
thorization of Appropriations Sec. 934. For the programs in SectionsSec. 921. Would authorize
932, 933, and 933A, would authorizeappropriations for distributed energy,
appropriations for FY2006 through2006 through 2008; for power delivery
FY2010.research, 2006 through 2008; and for
micro-cogeneration, 2006 through 2007.



CRS-95
able Energy
sion House Senate Comments
ndings Sec. 935. One finding would be thatNo similar provision.
renewable energy is a growth industry in
which the United States is losing market
share. Two other key findings would be
that the United States is increasingly
dependent on imported energy and that
the high cost of fossil fuels hurts the
economy. Further findings would
include that renewable energy can reduce
iki/CRS-RL33006demand for imported energy and smallreductions in demand can yield large
g/wreductions in price.
s.or
leakinitions Sec. 936.Biobased product” would beNo similar provision.
defined as a commercial or industrial
://wikiproduct (other than food or feed) that is
httpcomposed mainly of agricultural or
forestry materials.Cellulosic biomass”
would be defined as a crop grown to
produce lignocellulose or hemicellulose
as a feedstock. This could include barley
grain, rice matter, soybean matter,
bagasse, forest thinnings, or other
ma t e r i a l s .
ograms Sec. 937. DOE would be directed toNo similar provision.


conduct a renewable energy RDD&C
program with goals that include
improving energy security, reducing
costs, decreasing environmental impacts,
and increasing equipment exports.

CRS-96
sion House Senate Comments
Further, a report to Congress would be
required, which covers outcome
measures with five-year cost and energy-
saving performance baselines.
lar Sec. 938. DOE would be required toSec. 934. DOE would be authorized to
conduct an RDD&C program for solarconduct a research program on
energy, including photovoltaics, solar hotconcentrating solar power to establish the
water, solar space heating, andtechnology and economics of both
concentrating solar power. Also, DOEelectricity and hydrogen production. A
would be required to include efforts toreport to Congress would be required,
develop products that could be easilywhich recommends future research.
iki/CRS-RL33006integrated into new and existingSec. 935. DOE would be authorized to
g/wbuildings and manufacturing techniquesconduct research on novel lighting
s.orthat could produce low-cost, high qualitysystems that integrate sunlight and
leakequipment.electrical lighting in common lighting
fixtures to increase energy efficiency. A
://wikireport by the National Academy ofSciences would be required.
http
oenergy Programs Sec. 939. DOE would be directed toSec. 932. DOE would be directed to
conduct programs on cellulosic biomass,conduct a broad program of RDD&C in
biofuels, bio-based products, integratedbiopower, biofuels and bioproducts,
biorefineries, and university biodieselincluding technologies using cellulosic
fuel use for electric power. Also, grantsfeedstocks or enzyme-based processing.
would be established to support these
programs at Historically Black Colleges
and Universities, Tribal Colleges, and
Hispanic-Serving Institutions.
oduction Incentives forNo similar provision.Sec. 938. Would have goals to accelerate
losic Biofuels deployment and commercialization of
biofuels, produce the first one billion



CRS-97
sion House Senate Comments
gallons of cellulosic biofuels by 2015,
and ensure that biofuels become cost
competitive by 2015. The primary
strategy would be for DOE to conduct a
reverse auction,” wherein bidders
submit a desired level of incentive and
estimated annual production and then
DOE makes awards to the entities
submitting the lowest level of production
incentive. No single project would
receive more than 25% of the funds
committed to each auction.
iki/CRS-RL33006
g/wrement of BiobasedNo similar provision.Sec. 939. Would amend the Farm
s.orcts Security Act of 2002 (P..L. 107-171) to
leakadd the Capitol Complex to the list of
federal entities required to purchase
://wikibiobased products.
httpall Business BioproductNo similar provision.Sec. 940. Would require the Secretary of
keting and CertificationAgriculture to create a competitive grant
ts. program to support certification and
marketing of biobased products by small
firms. The grants would require a 50%
match and would not exceed $100,000.
gional BioeconomyNo similar provision.Sec. 941. Would require the Secretary of
elopment Grants Agriculture to create competitive grants
to a regional bioeconomy development
association, agricultural or energy trade
association, or Land Grant institution to
support coordination, education, and/or
outreach to promote development of a



CRS-98
sion House Senate Comments
regional bioeconomy for biobased
products. The grants would require a
50% match and would not exceed
$500,000.
eprocessing and HarvestingNo similar provision.Sec. 942. This provision would require
onstration Grants. the Secretary of Agriculture to create a
competitive grant program to support
agricultural producers in demonstrating
cellulosic biomass innovations that
produce ethanol, heat, electricity or other
useful forms of energy. The grants
iki/CRS-RL33006would require a 20% match and the
g/wnumber of demonstration projects would
s.orlimited to five per year.
leakcation and Outreach No similar provision.Sec. 943. Would require the Secretary of
://wikiAgriculture to establish a program ofeducation and outreach on biobased fuels
httpand biobased products that includes
training and technical assistance for
feedstock producers and public education
and outreach for consumers.
ports No similar provision.Sec. 944. Would require the Secretary of
Agriculture to report to Congress on the
economic potential for widespread
production of biobased products through
2025. Further, an analysis of economic
indicators of the biobased economy
would also be required.



CRS-99
sion House Senate Comments
nd Sec. 940. Would authorize the windNo similar provision.
energy RDD&C program at DOE.
Covered activities would include low-
speed wind, offshore wind, testing and
verification, and distributed wind energy
ge ne r a t i o n.
thermal Sec. 941. Would authorize theNo similar provision.
geothermal energy RDD&C program at
DOE. The program would focus on
resource detection, decreasing drilling
and maintenance costs, mineral
iki/CRS-RL33006production, and reservoir management.
g/wotovoltaic DemonstrationSec. 942. DOE would be required toNo similar provision.
s.orogram make grants to states to support solar
leakphotovoltaic demonstration projects,
://wikiproviding up to 40% of a projects costs(maximum $1 million). Also, DOE
httpwould be required to report to Congress
on program costs and the amount of
capacity installed.
ditional Programs Sec. 943. DOE would be empowered toSec. 936. DOE would be authorized to
conduct programs on ocean and waveconduct programs on ocean energy
energy, and combinations of renewable(including wave energy), on
energy technologies with one another andcombinations of renewable energy
with other energy technologies. Also,technologies with one another and with
DOE would be required to arrange withother energy technologies, and on
the National Academy of Sciences torenewable energy technologies for
conduct a study on renewable energycogeneration of hydrogen and electricity.


generation from the ocean, including
energy from waves, tides, and currents,

CRS-100
sion House Senate Comments
and from the variation in water
temperature with ocean depth (ocean
thermal energy). Additionally, DOE
would be required to conduct an
innovative program to put renewable
energy equipment in state and local
buildings, providing up to 40% of a
project’s incremental costs.
alysis and Evaluation Sec. 944. DOE would be required toNo similar provision.
conduct analysis and evaluation in
support of the programs under this
iki/CRS-RL33006subtitle. Up to 1% of the funds for this
g/wsubtitle could be designated for these
s.oractivities, including economic and
leaktechnical analysis of renewable energy
resources and potential and analysis of
://wikipast performance in terms of technicaladvances and market penetration.
http
thorization of Appropriations Sec. 945. Funding for DOE renewableSec. 931. Funding for DOE renewable
energy programs would be authorized forenergy, bioenergy, and concentrating
five fiscal years. Also, specificsolar power programs would be
authorizations would be provided forauthorized for three fiscal years.
bioenergy, concentrating solar power,
and public buildings. Funding for
Renewable Support and Implementation
would be excluded.
drogen Intermediate FuelsNo comparable provision.Sec. 933. The Secretary of Energy, in
ogram coordination with the Secretary of
Agriculture, would be required to
demonstrate the conversion of ethanol or



CRS-101
sion House Senate Comments
other renewable fuels into hydrogen for
transportation applications. A total of $5
million would be authorized for the
program.
sion House Senate Comments
inition of Junior Faculty Sec. 946. For the purpose of receivingNo provision.
iki/CRS-RL33006grants under Section 949, junior faculty
g/wmembers would be defined as having
s.orheld doctorates less than 10 years.
leak
clear Energy Programs Sec. 947. DOE would be required toSec. 946. DOE would be required to
://wikiconduct nuclear energy research,carry out existing nuclear R&D programs
httpdevelopment, demonstration, andcommercial application programs,on advanced nuclear concepts,improvements in existing reactors,
including DOE nuclear R&Ddeployment of advanced versions of
infrastructure support. Annualtodays commercial reactors (“Nuclear
performance reports on the programsPower 2010”), advanced reactor
must be submitted to Congress. technologies (Generation IV), and
nuclear hydrogen production. A strategy
for managing nuclear research facilities
and infrastructure would also be
mand ated.
vanced Fuel RecyclingSec. 948. DOE would be required toSec. 947. Similar provisions.DOE is currently implementing the Advanced
ogram conduct a program on advancedFuel Cycle Initiative without a specific funding
technologies for the reprocessing of spentauthorization. Spent fuel recycling or reprocessing
nuclear fuel. The technologies should beinvolves the extraction of plutonium and uranium



CRS-102
sion House Senate Comments
resistant to nuclear weapons proliferationfrom spent nuclear fuel for use in new fuel.
and support alternative spent fuelSupporters contend that it could extend domestic
disposal strategies and advanced reactorenergy supplies and reduce the hazard posed by
concepts. nuclear waste, while opponents are concerned that
the extracted plutonium could be used for
weapons.
iversity Nuclear Science andSec. 949. DOE would be required toSec. 948. Similar provisions, plus aThis section would add new statutory
gineering Support support human resources and infrastructurefellowship and visiting scientist programrequirements to the existing DOE University
in nuclear science and engineering andsimilar to House Sec. 950.Reactor Fuel Assistance and Support Program.
related fields. The program would include
fellowship and faculty assistance programs
iki/CRS-RL33006and support for fundamental and
g/wcollaborative research. The program
s.orwould also be authorized to help convert
leakresearch reactors to low-enriched fuels,
support training in reactor relicensing and
://wikiupgrading, and provide funding forresearch reactor improvements. DOE
httpfunding for research projects could be used
for some of the operating costs of research
reactors used in those projects.
iversity-National LaboratorySec. 950. DOE would be required toIncluded in Sec. 948.


teractions conduct a nuclear science and technology
fellowship program for university
professors to spend sabbaticals at
National Laboratories and a visiting
scientist program to allow National
Laboratory staff to spend time in
university nuclear departments.

CRS-103
sion House Senate Comments
clear Power 2010 Program Sec. 951. DOE would be required toIncluded in Sec. 946.
carry out the existing Nuclear Power
2010 Program to encourage deployment
of new commercial reactors as soon as
feasib le.
eration IV Nuclear EnergySec. 952. DOE would be required toIncluded in Sec. 946.
stems Initiative carry out the existing Generation IV
Nuclear Energy Systems Initiative, which
supports development of advanced
concepts that could replace existing
commercial reactor technology. The
iki/CRS-RL33006program would have to include
g/wproliferation-resistant advanced reactor
s.ordesigns that, in comparison with existing
leakreactors, would have higher efficiency,
lower cost, improved safety, and lower
://wikirates of high-level waste production.
httpfrastructure and Facilities Sec. 953. DOE would be required toIncluded in Sec. 946.
operate and maintain infrastructure and
facilities for nuclear energy programs.
clear Energy Research andSec. 954. DOE would have to develop anNo inventory requirement, but Sec. 946
elopment Infrastructure Planinventory of nuclear energy infrastructurerequires a strategy formaking facility
and a priority list of neededupgrades and modifications.”
improvements.
o National LaboratorySec. 955. A comprehensive plan wouldNo specific mention of Idaho National
lanbe required for the facilities at IdahoLaboratory, but Sec. 946 mandates a
National Laboratory, which DOE hasstrategy for facilities of the Office of
designated as its lead laboratory forNuclear Energy, Science, and
nuclear energy programs.Technology, which operates the lab.



CRS-104
sion House Senate Comments
thorization of Appropriations Sec. 956. Funding for DOE nuclearSec. 945. Funding for DOE nuclear
energy programs in Sections 948-955 areresearch programs would be authorized
authorized for FY2006-2010.for FY2006-FY2008. None of the funds
could be used for decommissioning the
Fast Flux Test Facility at Hanford,
W a shi ngt o n.
t Generation Nuclear Plant Sec. 957-961. DOE would be required toNo provision in the R&D title (seeThis project is similar to the hydrogen production
design, build, and operate an advancedcomment).reactor authorized for construction at Idaho
technology nuclear reactor by 2015. ForNational Laboratory by Secs. 651-652 of the
development and design of the reactor,House bill and Secs. 631-635 of the Senate bill.
$150 million per year would be(The project authorized in the Senate bill is also
iki/CRS-RL33006authorized for FY2006-FY2010. Forcalled the “Next Generation Nuclear Plant.”)
g/wconstruction, $500 million would beHowever, the project authorized by these sections
s.orauthorized, and such sums as necessaryof the House bill would not have to produce
leakwould be authorized for operation. hydrogen or be built at Idaho National Laboratory.
://wikirity of Nuclear FacilitiesNo provision.Sec. 949. DOE would be required toconduct research on technologies for
httpincreasing nuclear plant security and
protecting nuclear facilities from natural
d i sa ste r s.
natives to IndustrialNo provision.Sec. 950. DOE would be required toRadioactive sources have been widely cited as a
dioactive Sourcesstudy industrial applications of largepotential source ofdirty bomb material, so
radioactive sources and establish adevelopment of alternative technologies could
research program to develop alternatives.provide security benefits.



CRS-105
— Research Programs
sion House Senate Comments
nced Fossil EnergySec. 962. Specified priority programsNo similar provision.
search and Developmentwould be spelled out to improve the
ograms efficiency, effectiveness and
environmental performance of fossil
energy production, upgrading,
conversion, and consumption.
sil Research andSec. 963. The objective of the FossilNo similar provision.
iki/CRS-RL33006velopment R&D program would be to reduceemissions from fossil fuel use such as
g/wmercury, fine particles, smog, and
s.orcarbon dioxide using technologies
leakincluding pre-combustion technologies.
://wikid Gas Research andSec. 964. Research programs would beSec. 952. Similar provision except a
httpvelopment focused on assisting small domesticreport on natural gas and oil deposits in
producers of oil and gas, the extraction offederal and state waters would be
methane hydrates, improving otherconducted by the Secretary of the Interior
extraction technologies, and reducing theand submitted to Congress every 2 years.
costs of acquiring unconventional fuels.Also, an national center of excellence in
clean energy and power generation
would be established.
ansportation Fuels Sec. 965. The Secretary would conductNo similar provision.


R&D projects on the commercialization
of coal and natural gas to transportation
fuel and indirect liquefaction of coal and
biomass.

CRS-106
sion House Senate Comments
el Cells Sec. 966. The Secretary would conductNo similar provision.
R&D on fuel cell commercialization
including fuel cell proton exchange
membrane technology.
rbon Dioxide CaptureSec. 967. The Secretary would support aSec. 957. Similar provision.
search and Development 10-year R&D program aimed at
developing carbon dioxide capture
technologies for pulverized coal
combustion units. The program would
focus on developing add-on carbon
dioxide capture technologies, combustion
iki/CRS-RL33006technologies and increasing the
g/wefficiency of the overall combustion
s.orsystem. In addition, the Secretary would
leaksupport a carbon sequestration program
with the private sector through regional
://wikipartnerships.
httpthorization of Appropriations Sec. 968. Funds are authorized inSec. 951. Funds would be authorized in
general and for programs described ingeneral for years FY2006-FY2008 and
Sec. 967 for years FY2006- FY2010. specifically for programs described in
Sections 954, 955, and 956.
estern MichiganSec. 968A. The EPA in consultation withNo similar provision.


onstration Project the State of Michigan would conduct
demonstration projects to assess the
effect of transported ozone and ozone
precursors in southwest Michigan.

CRS-107
sion House Senate Comments
estern Hemisphere EnergySec. 968B. The Secretary would carrySec. 981. Same provision, except slightly
ion out a program to promote cooperation onhigher appropriations during FY2006-
energy issues among WesternFY2008.
Hemisphere countries including, to the
extent practicable, universities.
Authorized funding would be for years
FY2006-FY2010.
ctic Engineering ResearchSec. 968C. The Secretary of Energy inNo similar provision.
nter consultation with the Secretary of
Transportation would establish the Arctic
Engineering Research Center in
iki/CRS-RL33006Fairbanks, AK, to conduct R&D on
g/wimproving the infrastructure in the Arctic
s.orregion. A sum of $3 million would
leakauthorized and made available in a grant
to a specified university each year for
://wikiyears FY2006-FY2011.
httprrow Geophysical ResearchSec. 968D. The Secretary of CommerceNo similar provision.


in consultation with the Secretaries of
Energy and the Interior and Director of
the National Science Foundation and the
Administrator of the EPA would
establish the “Barrow Geophysical
Research Facility in Barrow, Alaska. A
sum of $61 million would be authorized
to be appropriated.

CRS-108
sion House Senate Comments
ane Hydrate Reseaerch No similar provision.Sec. 953. A methane hydrate research
and development program would be
established. A methane hydrate advisory
panal would be set up and a study would
be conducted by the National Research
Council that would assess the R&D
program. Funds would be authorized for
years FY2006 - FY2010.
w-volume gas reservoirNo similar provision.Sec. 954. A program would be
earch program established by the Secretary to maximize
the productive capacity of marginal wells
iki/CRS-RL33006and reservoirs. Funds would be
g/wauthorized for FY2006-FY2008.
s.or
leaksearch and development forNo similar provision.Sec 955. A program on coal mining
://wikial mining technologies technologies would be established.
http
al and related technologiesSimilar provision. (See Sec. 441 ofSec. 956. In addition to the programs
House bill.)authorized under title IV, DOE would be
required to conduct a program of
technology research, development, and
demonstration and commercial
application for coal and power systems.
mplex well technologyNo similar provision.Sec. 958. A Complex Well Technology
g facility Testing Facility would be established at
the Rocky Mountain Oilfield Testing
Center to increase range of extended
drilling technologies.



CRS-109
sion House Senate Comments
albed Methane Study No similar provision.Sec. 1305. The Secretary, along with the
National Academy of Science, and the
Administrator of EPA would conduct a
study on the effect of CBM production
on surface and ground water resources
including groundwater aquifers in several
western states.
— Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources
iki/CRS-RL33006sion House Senate Comments
g/w
s.orogram AuthoritySec. 969. R&D would be directed towardNo similar provision.
leakthe demonstration and commercial
application of technology for
://wikiultra-deepwater oil and gas production,
httpincluding unconventional oil and gas
resources. The R&D program would be
designed to benefitsmall producers
and address environmental concerns.
Complementary research would be
carried out through DOE’s National
Energy Technology Laboratory.
Deepwater andSec. 970. The Secretary of Energy couldNo similar provision.


conventional Onshorecontract with a consortium to recommend
ral Gas and Otherultra-deepwater research projects and
troleum Researchmanage funding awarded under this
program. The Secretary would make
competitive awards to research consortia
for conducting R&D on advanced

CRS-110
sion House Senate Comments
technologies for recovering coalbed
methane and other unconventional
resources.
ditional Requirements forSec. 971. The Secretary could reduce orNo similar provision.
ardseliminate the non-federal cost-share
requirement for awards under this
program, 2.5% of each award would be
designated for technology transfer, and
various additional award requirements
would be stipulated.
iki/CRS-RL33006visory CommitteesSec. 972. An Ultra-Deepwater AdvisoryNo similar provision.
g/wCommittee and an UnconventionalResources Technology Advisory
s.orCommittee would be established.
leak
://wikimits on ParticipationSec. 973. This section would establishcriteria for foreign participation. No similar provision.
http
tSec. 974. The authority in this partNo similar provision.
would terminate at the end of FY2014.
initions Sec. 975. The terms deepwater,No similar provision.
ultra-deepwater, unconventional oil and
gas, independent producers of oil and
gas, and others would be defined.
ingSec. 976. The Ultra-Deepwater andNo similar provision.


Unconventional Natural Gas and Other
Petroleum Research Fund would be
established. Revenues derived from
federal oil and gas leases, after all
previously mandated distributions of

CRS-111
sion House Senate Comments
those revenues had been made, would be
deposited in the fund, up to $200 million
annually during FY2005-FY2014. The
Secretary of Energy could obligate
money from the fund for programs in this
part without an overall annual limit,
although annual percentage allocations
among the programs would be spelled
out.
iki/CRS-RL33006Department of Energy Management
g/w
s.or
leaksion House Senate Comments
://wikier Transactions Authority Sec. 1002. This would amend SectionSec. 1011. This would amend Section
http646 of the DOE Organization Act (42646 of the DOE Organization Act (42
U.S.C. 7256) to allow the EnergyU.S.C. 7256 to allow the Energy
Secretary to enter into additionalSecretary to enter into other transactions
transactions furthering research,in furtherance of research, development,
development, or demonstration withoutor demonstration functions not subject to
requiring that title to inventions be vestedSection 9 of the Federal Nonnuclear
in the federal government as currentlyEnergy Research and Development Act
specified by Section 9 of the Federalof 1974 (42 U.S.C. 5908) that does not
Nonnuclear Energy Research andduplicate research, development,
Development Act of 1974 (42 U.S.C.or demonstration being conducted under
5908) or section 152 of the Atomicexisting projects carried out by the
Energy Act of 1954 (42 U.S.C. 2182). Department.



CRS-112
sion House Senate Comments
iversity Collaboration Sec. 1003. The Secretary of EnergySec. 1327. The Energy Secretary would
would report on the feasibility ofreport on the feasibility of promoting
promoting collaboration betweencollaborations between large institutions
Doctoral Research Extensive Universities of higher education and small institutions
in grants, contracts, and cooperativeof higher education through grants,
agreements made by the Secretary forcontracts, and cooperative agreements
energy projects.made by the Secretary for energy
proj ects.
all Business Advocacy andNo comparable section.Sec. 1007. This section would require
nce appointment of a small business advocate
at each National Laboratory and
iki/CRS-RL33006research facility to increase the
g/wparticipation of small business concerns,
s.orincluding socially and economically
leakdisadvantaged small business concerns.
://wikitreach No comparable section.Sec. 1008. DOE would ensure that eachprogram authorized by this Act includes
httpan outreach component to provide
information to manufacturers, consumers,
engineers, architects, builders, energy
service companies, institutions of higher
education, facility planners and
managers, state and local governments,
and other entities.
nse of Congress Sec. 1004. This section would establish aNo comparable provision.


sense of Congress that the Secretary of
Energy should apply more stringent
procurement and inventory controls to
prevent waste of taxpayer funds, and the
Departments Inspector General should

CRS-113
sion House Senate Comments
continue to closely review the use of
purchase cards.
Electricity
sion House Senate Comments
ort Title Sec. 1201. This title may be cited as theSec. 1201. This title may be cited as the
Electric Reliability Act of 2005.”Electricity Modernization Act of 2005.”
iki/CRS-RL33006
g/w
s.or
leakliability Standards
://wikision House Senate Comments
http
ic Reliability Standards Sec. 1211. This section would requireSec. 1211. Similar to House version. The North American Electric Reliability Council
the Federal Energy RegulatoryDefinition ofreliability standard does(NERC) currently has responsibility for reliability
Commission to promulgate rules withinnot include cybersecurity protection.of the bulk power system. NERC has established
180 days of enactment to create a FERC-Includes definition ofregional entity.’ reliability guidelines but has no enforcement
certified electric reliability organizationWould not limit the amount of dues, fees,authority. The Federal Power Act currently gives
(ERO). Under this section, the EROand other charges the ERO could collect.FERC jurisdiction over unbundled transmission
would develop and enforce reliabilityWould not specifically allow New Yorkand authority to regulate wholesale rates;
standards for the bulk-power system,to establish reliability rules that wouldhowever, no authority was provided to regulate
including cybersecurity protection. Newresult in greater reliability within the statereliability. (See Appendix E for more
York would be allowed to establishof New York. information.)


reliability rules that would result in
greater reliability within the state of New
York. All ERO standards would be

CRS-114
sion House Senate Comments
approved by FERC. Under this title, the
ERO could impose penalties on a user,
owner, or operator of the bulk-power
system that violates any FERC-approved
reliability standard. In addition, FERC
could order compliance with a reliability
standard and could impose a penalty if
FERC finds that a user, owner, or
operator of the bulk-power system has
engaged in or is about to engage in a
violation of a reliability standard. This
provision would not give an ERO or
iki/CRS-RL33006FERC authorization to order construction
g/wof additional generation or transmission
s.orcapacity.
leak
://wikicture Modernization
http
sion House Senate Comments
g of Interstate ElectricSec. 1221. The Secretary of EnergySec. 1221. Similar to House-passed H.R.
ansmission Facilities would be required to conduct a study of6. Would not exempt the Electric
electric transmission congestion everyReliability Council of Texas (ERCOT)
three years. Based on the findings, thefrom this section.


Secretary of Energy could designate a
geographic area as being congested.
Under certain conditions, FERC would
be authorized to issue construction
permits. Under proposed Federal Power
Act (FPA) section 216(d), affected states,
federal agencies, Indian tribes, property

CRS-115
sion House Senate Comments
owners, and other interested parties
would have an opportunity to present
their views and recommendations with
respect to the need for and impact of a
proposed construction permit. However,
there is no requirement for a specific
comment period. New FPA section
216(e) would allow permit holders to
petition in U.S. District Court to acquire
rights-of-way through the exercise of the
right of eminent domain. Any exercise
of eminent domain authority would be
iki/CRS-RL33006considered to be takings of private
g/wproperty for which just compensation is
s.ordue. New FPA section 216(g) does not
leakstate whether property owners would be
required to reimburse compensation if the
://wikirights-of-way were transferred back to
httpthe owner. The Electric Reliability
Council of Texas (ERCOT) would be
exempted from this section.
-
An applicant for federal authorization to
site transmission facilities on federal
lands could request that the Department
of Energy be the lead agency to
coordinate environmental review and
other federal authorization. Once a
completed application is submitted, all
related environmental reviews would be
required to be completed within one year
unless another federal law makes that
impossible. FPA section 216(h) would



CRS-116
sion House Senate Comments
give the Department of Energy new
authority to prepare environmental
documents and appears to give DOE
additional decision-making authority for
rights-of-way and siting on federal lands.
This would appear to give DOE input
into the decision process for creating
rights-of-way. Review under section 503
of the Federal Land Policy and
Management Act could be streamlined by
relying on prior analyses. If a federal
agency has denied an authorization
iki/CRS-RL33006required by a transmission or
g/wdistributions facility, the denial could be
s.orappealed by the applicant or relevant
leakstate to the Secretary of Energy. The
Secretary of Energy would be required to
://wikiissue a decision within 90 days of the
httpappeal’s filing. States could enter into
interstate compacts for the purposes of
siting transmission facilities and the
Secretary of Energy could provide
technical assistance. The House-passed
version of this section would not apply to
the Electric Reliability Council of Texas
(ERCOT).
ird-Party Finance Sec. 1222. The Western Area PowerSec. 1222. Similar provision.Under current law the enabling statutes for power
Administration (WAPA) and themarketing administrations may restrict third-party
Southwestern Power Administrationfinancing, construction, operation, and
(SWPA) would be able to either continuemaintenance of transmission facilities.


to design, develop, construct, operate,
maintain, or own transmission facilities

CRS-117
sion House Senate Comments
within their regions or participate with
other entities for the same purposes if:
the Secretary of Energy designates the
area as a National Interest Electric
Transmission Corridor and the project
would reduce congestion, or the project is
needed to accommodate projected
increases in demand for transmission
capacity. The project would be required
to be consistent with the needs identified
by the appropriate Regional
Transmission Organization or
iki/CRS-RL33006Independent System Operator. No more
g/wthan $100 million from third-party
s.orfinancing may be used during fiscal years
leak2006 through 2015.
://wikiansmission Systemonitoring Sec. 1223. Within six months ofenactment, the Secretary of Energy andSec. 1314. Similar provision.


httpthe Federal Energy Regulatory
Commission would be required to
complete a study and report to Congress
on what would be required to create and
implement a transmission monitoring
system for the Eastern and Western
interconnections. The monitoring system
would provide all transmission system
owners and Regional Transmission
Organizations real-time information on
the operating status of all transmission
lines.

CRS-118
sion House Senate Comments
vanced TransmissionSec. 1224. FERC would be directed toSec. 1223. Similar provision.
chnologies encourage deployment of advanced
transmission technologies.
ransmission andSec. 1225. The Secretary of Energy,No similar provision.
stribution Programs acting through the Director of the Office
of Electric Transmission and
Distribution, would be required to
implement a program to promote
reliability and efficiency of the electric
transmission system. Within one year of
enactment, the Secretary of Energy
iki/CRS-RL33006would be required to submit to Congress
g/wa report detailing the programs five-year
s.orplan. Within two years of enactment, the
leakSecretary of Energy would be required to
submit to Congress a report detailing the
://wikiprogress of the program. The Secretaryof Energy would be directed to establish
httpa research, development, demonstration,
and commercial application initiative that
would focus on high-temperature
superconductivity. For this project,
appropriations would be authorized for
FY2006 through FY2010.
vanced Power SystemSec. 1226. A program would beSec. 1224. Similar provision.


nology Incentive Program established to provide incentive
payments to owners or operators of
advanced power generation systems.
Eligible systems would include advanced
fuel cells, turbines, or hybrid power
systems. For FY2006 through FY2012

CRS-119
sion House Senate Comments
an annual appropriation of $10 million
would be authorized.
fice of Electric TransmissionSec. 1227. This would amend Title II ofNo provision.
d Distribution the Department of Energy Organization
Act (42 U.S.C. 7131 et seq) to establish
an Office of Electric Transmission and
Distribution. The Director of the office
would, in part, coordinate and develop a
strategy to improve electric transmission
distribution, implement recommendations
from the Department of Energys
iki/CRS-RL33006National Transmission Grid Study,
g/woversee research, development, and
s.ordemonstration to support federal energy
leakpolicy related to electricity transmission
and distribution, and develop programs
://wikifor workforce training and powertransmission engineering.
http
ion Improvements
sion House Senate Comments
Nondiscriminatory Access Sec. 1231. FERC would be authorized toSec. 1231. Similar provision.Currently under the Federal Power Act (Section
require, by rule or order, unregulated201(f)), federal power marketing administrations,
transmitting utilities (power marketingstate entities, and rural electric cooperatives are
administrations, state entities, and ruralnot subject to FERCs ratemaking. In §1231,
electric cooperatives) to charge ratesexemptions are established for utilities selling less
comparable to what they chargethan 4 million megawatt-hours of electricity per
themselves and require that the terms andyear, for distribution utilities, and for utilities that



CRS-120
sion House Senate Comments
conditions of the sales be comparable toown or operate transmission facilities that are not
those required of other utilities. Thisnecessary to facilitate a nationwide interconnected
exemption could be revoked to maintaintransmission system. This section is often referred
transmission system reliability. FERCto as “FERC-lite.”
would not be authorized to order states or
municipalities to take action under this
section if such action would constitute a
private use under section 141 of the
Internal Revenue Code of 1986. FERC
may remand transmission rates to an
unregulated transmitting utility if the
rates do not comply with this section.
iki/CRS-RL33006FERC is not authorized to order an
g/wunregulated transmitting utility to join a
s.orRegional Transmission Organization or
leakother FERC-approved independent
transmission organization.
://wikigional TransmissionSec. 1232. This would establish a senseSec. 1232. FERC could encourage andCurrently, section 202(a) of the Federal Power Act
httpganizations (RTO) of Congress that utilities shouldapprove the voluntary formation ofdirects FERC to promote and encourage regional
voluntarily become members of regionalRTOs, Independent System Operatorsdistricts for the voluntary interconnection and
transmission organizations. (ISOs), or similar organizations. Eachcoordination of transmission facilities by public
transmission organization would beutilities and non-public utilities for the purpose of
required to report to FERC on aassuring an abundant supply of electric energy
scheduled basis to ensure that thethroughout the United States with the greatest
transmission organizations operationspossible economy.


are cost effective and consistent with the
FERC-approved tariffs and agreements.
FERC would be required to perform an
annual audit of each transmission
o r ga ni z a t i o n.

CRS-121
sion House Senate Comments
gional TransmissionSec. 1233. FERC would be required toNo provision.
ganization Applicationsreport to Congress within 120 days of
ress Report enactment the status of all regional
transmission organization applications.
eral Utility Participation inSec. 1234. Federal utilities (powerSec. 1233. Similar provision.
gional Transmissionmarketing administrations or the
ganizations Tennessee Valley Authority) would be
authorized to participate in regional
transmission organizations. A law
allowing federal utilities to study
formation and operation of a regional
iki/CRS-RL33006transmission organization would be
g/wrepealed (16 U.S.C. 824n).
s.ordard Market Design Sec. 1235. FERCs proposed rulemakingSec. 1234. FERCs proposed rulemakingOn July 31, 2002, FERC issued a Notice of
leakon standard market design (Docket No.on standard market design (Docket No.Proposed Rulemaking (NOPR) on standard market
://wikiRM01-12-000) would be remanded toFERC for reconsideration. No finalRM01-12-000 would be terminated andFERC would not be allowed to reissuedesign (SMD). FERC’s stated goal of establishingSMD requirements in conjunction with a
httprulemaking