Omnibus Energy Legislation (H.R. 6): Side-by-side...

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Order Code RL32033

Omnibus Energy Legislation (H.R. 6): Side-by-side Comparison of Non-tax Provisions

August 13, 2003

Mark Holt and Carol Glover, CoordinatorsResources, Science, and Industry Division

Omnibus Energy Legislation (H.R. 6): Side-by-side Comparison of Non-tax Provisions

Summary

Continuing a legislative effort that began in the 107th Congress, the House andSenate in the first session of the 108th passed two distinct versions of an omnibusenergy bill (H.R. 6), which would be the first comprehensive energy legislation inmore than 10 years.

Although Republicans are in the majority in both chambers, the conference onH.R. 6 will be complicated by deep divisions within the Senate on energy policy.Facing numerous amendments and limited floor time, the Senate set aside the energybill it had been considering in the 108th Congress (S. 14) and passed the text of lastyear’s Senate energy bill (H.R. 4). Because last year’s bill was passed when theSenate was under a Democratic majority, some Republican leaders have pledged tore-insert provisions from this year’s S. 14 in conference.

The House version of H.R. 6, which passed April 11, 2003, includes a keycomponent of the Bush Administration’s energy strategy: opening the Arctic NationalWildlife Refuge (ANWR) to oil and gas exploration and development — with a2,000-acre limitation on production and support facilities. The Senate version,approved July 31, 2003, leaves ANWR off-limits to drilling.

The electricity provisions of H.R. 6 would continue to change the regulatoryrequirements for the wholesale electric market. In general, with some differences,both the House and Senate versions would repeal the Public Utility HoldingCompany Act (PUHCA) and give the Federal Energy Regulatory Commission(FERC) and state utility commissions access to utility books and records. Bothwould also repeal the mandatory purchase requirement of the Public UtilityRegulatory Policies Act (PURPA) when a competitive electric market exists.

Automobile and light truck fuel efficiency was the subject of considerabledebate in both houses. The Senate version would require development of newCorporate Average Fuel Economy (CAFE) standards, but it also would freeze“pickup trucks” at the current light truck standard of 20.7 mpg. The House versionwould authorize appropriations to NHTSA to conduct further rulemakings and wouldrequire a study of the feasibility and effects of reducing automobile fuel use.

The House version of H.R. 6 includes a renewable fuel standard (RFS) thatwould require the blending of 2.7 billion gallons of renewable fuel with gasoline in2005. The required volume would rise to 5 billion gallons annually by 2015, whilethe Senate version would require that target to be met by 2012. Several othercontroversial environmental provisions are contained only in the Senate-passed bill,particularly programs to address global climate change and renewable energyrequirements for electricity providers.

Tax provisions in the House and Senate bills are not included in this report.

No update of this report is planned.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Major Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Arctic National Wildlife Refuge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Electricity Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Motor Vehicle Fuel Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Nuclear Accident Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Renewable Fuel Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Renewable Energy and Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Overview of House and Senate Versions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Organization of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Energy Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Federal Leadership in Energy Conservation . . . . . . . . . . . . . . . . . . . . . . . . . 9Energy Assistance and State Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Energy Efficient Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Alaska Natural Gas Pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Strategic Petroleum Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Hydraulic Fracturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Unproven Oil and Natural Gas Reserves Recovery Program . . . . . . . . . . . 26Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Hydroelectric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Alternative Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31Additional Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Nuclear Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Price-Anderson Act Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Miscellaneous Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Vehicles and Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Energy Policy Act Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Advanced Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50Hydrogen Fuel Cell Heavy-Duty Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . 51Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Electricity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Transmission Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Bonneville Power Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Transmission Operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Reliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Public Utility Holding Company Act Amendments . . . . . . . . . . . . . . . . . . 65Public Utility Regulatory Policies Act (PURPA) Amendments . . . . . . . . . 73Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Market Transparency, Round Trip Trading Prohibition, and Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Consumer Protections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Merger Review Reform and Accountability . . . . . . . . . . . . . . . . . . . . . . . . 85Study of Economic Dispatch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Motor Fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87MTBE Cleanup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Automobile Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99Distributed Energy and Electric Energy Systems . . . . . . . . . . . . . . . . . . . 101Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104Nuclear Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106Fossil Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110Science . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Energy and Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Department of Energy Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

Clean School Buses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138Indian Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138Oil and Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141Biomass Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149Arctic Coastal Plain Domestic Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149Hydropower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160Insular Areas Energy Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

Clean Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

Hydrogen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

National Climate Change Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179Sense of Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179Climate Change Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179Science and Technology Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184

National Greenhouse Gas Database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Climate Change Science and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Department of Agriculture Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190International Energy Technology Transfer . . . . . . . . . . . . . . . . . . . . . . . . 192Climate Change Science and Information . . . . . . . . . . . . . . . . . . . . . . . . . 194

Amendments to the Global Change Research Act of 1990 . . . . . . . . 194National Climate Services and Monitoring . . . . . . . . . . . . . . . . . . . . 197Ocean and Coastal Observing System . . . . . . . . . . . . . . . . . . . . . . . . 199

Climate Change Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199Climate Adaptation and Hazards Prevention . . . . . . . . . . . . . . . . . . . . . . . 201

Assessment and Adaptation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201Forecasting and Planning Pilot Programs . . . . . . . . . . . . . . . . . . . . . 203

Critical Energy Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204Department of Energy Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204Department of the Interior Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Iraq Oil Import Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

Miscellaneous Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Index of Senate Non-Tax Sections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

List of TablesTable 1. Major Non-tax Provisions of House and Senate Energy Bills . . . . . . . . . 6Table 2. Authorizations in H.R. 6 as passed by the House. . . . . . . . . . . . . . . . . 208Table 3. Authorizations in H.R. 6 as passed by the Senate. . . . . . . . . . . . . . . . . 216

Omnibus Energy Legislation (H.R. 6): Side-by-side Comparison of Non-tax

Provisions

Introduction

Continuing a legislative effort that began in the 107th Congress, the House andSenate in the first session of the 108th passed two distinct versions of an omnibusenergy bill (H.R. 6), which would be the first comprehensive energy legislation inmore than 10 years.

Although Republicans are in the majority in both chambers, the conference onH.R. 6 will be complicated by deep divisions within the Senate on energy policy.Facing numerous amendments and limited floor time, the Senate set aside the energybill it had been considering in the 108th Congress (S. 14) and passed the text of lastyear’s Senate energy bill. Because last year’s bill was passed when the Senate wasunder a Democratic majority, some Republican leaders have pledged to re-insertprovisions from this year’s S. 14 in conference.

The House version of H.R. 6, which passed April 11, 2003, includes a keycomponent of the Bush Administration’s energy strategy: opening the Arctic NationalWildlife Refuge (ANWR) to oil and gas exploration and development — with a2,000-acre limitation on production and support facilities. The Senate version,approved July 31, 2003, leaves ANWR off-limits to drilling.

Both bills have extensive provisions to change the regulatory requirements forthe wholesale electric market, including repeal of the Public Utility HoldingCompany Act (PUHCA). Both bills include provisions to address motor vehicle fueleconomy, nuclear accident liability, and authorizations of energy research anddevelopment programs. Major provisions contained only in the Senate-passed billinclude programs to address global climate change and renewable energyrequirements for electricity providers (see Table 1).

This report summarizes the major non-tax provisions of the House- and Senate-passed bills, provides a detailed side-by-side comparison, and lists annual fundingauthorizations.

Tax provisions in the House and Senate bills are not included in this report.

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Major Provisions

Arctic National Wildlife Refuge. The congressional debate over whetherto open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing hascontinued for more than 30 years. H.R. 6 as passed by the House would authorizeoil and gas exploration, development, and production in ANWR, with a 2,000-acrelimit on production and support facilities. Opponents of development in ANWRexpressed concern that the 2,000 acres would be spread out over vast areas of theRefuge. The Senate-passed bill would keep ANWR closed to oil and gas activities.

Proponents of exploring ANWR point to advances in exploration and drillingtechnology and methods that have significantly reduced the extent of surfacedisturbance caused by oil and gas activities. While opponents concede this may beso, they argue that the bill does not impose adequate requirements in this regard, thatsurface disturbance represents only one of many environmental impacts, and thatconsiderable risk to the environment remains during all phases of development.Some opponents, citing ANWR’s pristine character, argue that its ecology and habitatshould not be disturbed under any circumstances.

H.R. 6 was also amended on the floor to include language authorizing revenuesfrom bonus bids for leases in ANWR to be appropriated to the Low Income HomeEnergy Assistance Program (LIHEAP). An amendment to strike the languageauthorizing leasing and exploration of ANWR was defeated (197-228). (Foradditional information, see CRS Issue Brief IB10111, The Arctic National WildlifeRefuge: Controversies for the 108th Congress, and CRS Report RL31115, LegalIssues Related to Proposed Drilling for Oil and Gas in the Arctic National WildlifeRefuge.)

Electricity Regulation. Historically, electric utilities have been regarded asnatural monopolies requiring regulation at the state and federal levels. The EnergyPolicy Act of 1992 (EPACT, P.L. 102-486) removed a number of regulatory barriersto electricity generation in an effort to increase supply and introduce competition, butfurther legislation has been introduced and debated to resolve remaining issuesaffecting transmission, reliability, and other restructuring concerns.

Title VI of the House-passed H.R. 6 would, in part, provide for incentive-basedtransmission rates, allow transmission owners in certain instances to exercise theright of eminent domain to site new transmission lines, create an electric reliabilityorganization, and give new, but limited, authority to the Federal Energy RegulatoryCommission (FERC) over municipal and cooperative transmission systems.

In addition, the House bill would repeal the Public Utility Holding CompanyAct (PUHCA) and give FERC and state public utility commissions access to booksand records, prospectively repeal the mandatory purchase requirement of the PublicUtility Regulatory Policies Act of 1978 (PURPA), and require utilities to providereal-time rates and time-of-use metering. The House version of H.R. 6 wouldestablish market transparency rules, explicitly prohibit round-trip trading, andsignificantly increase criminal penalties under the Federal Power Act.

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In general, the Senate version of the energy bill would repeal PUHCA and giveFERC and the state utility commissions access to utility books and records. It wouldalso repeal the PURPA mandatory purchase requirement when FERC finds that acompetitive electric market exists. In addition, the Senate-passed H.R. 6 would giveFERC more review authority over certain electric utility mergers and increase thevalue of asset transfers that would trigger FERC review. It would require FERC toapply cost-of-service rates when market-based rates are unjust, unreasonable, undulydiscriminatory or preferential; require an electric reliability organization to developand enforce mandatory reliability standards; provide access to the transmissionsystem for certain intermittent generators; create an Office of Consumer Advocacywithin the Department of Justice; and give states the authority to prescribe andenforce laws regarding the application of the Consumer Protection Subtitle.

(For additional information, see CRS Issue Brief IB10006, Electricity: The Roadto Restructuring, or see the CRS Electronic Briefing Book: Electric UtilityRestructuring [http://www.congress.gov/brbk/html/ebele1.shtml].)

Motor Vehicle Fuel Economy. One of the first initiatives designed to havea significant effect on oil demand was passage of corporate average fuel economystandards (CAFE) in the Energy Policy and Conservation Act of 1975 (EPCA, P.L.94-163). In the years since, there have been periodic calls for stiffening orbroadening the CAFE standards — especially as consumer demand has turned moreto light-duty trucks and sport utility vehicles (SUVs).

Higher CAFE standards for light-duty trucks were released April 1, 2003, by theNational Highway Traffic Safety Administration (NHTSA), but congressionalinterest in the issue continues. The House version of H.R. 6 would authorizeappropriations to NHTSA to conduct further rulemakings and would require a studyon the feasibility and effects of reducing automobile fuel use. An amendment torequire a 5% reduction in automotive fuel usage by 2010 was defeated (162-268) onthe House floor.

The Senate language — originally passed before the latest NHTSA rulemaking— would require NHTSA to issue new CAFE standards, except for “pickup trucks.”The provision would freeze the standard for pickup trucks at 20.7 miles per gallon,the level in effect when the Senate first approved this language in 2002. The CAFEfreeze on pickup trucks, which are undefined, could shift at least some of the burdenfor achieving fuel savings to the passenger automobile portion of the fleet.

(For additional information, see CRS Issue Brief IB90122, Automobile andLight Truck Fuel Economy: The CAFE Standards.)

Nuclear Accident Liability. Reauthorization of the Price-Anderson Actnuclear liability system is one of the top nuclear items on the energy agenda. UnderPrice-Anderson, commercial reactor accident damages are paid through acombination of private-sector insurance and a nuclear industry self-insurance system.Liability is capped at the maximum coverage available under the system, currentlyabout $10.9 billion. Price-Anderson also authorizes the Department of Energy(DOE) to indemnify its nuclear contractors. The limit on DOE contractor liability

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is the same as for commercial reactors, except when the limit for commercial reactorsdrops because of a decline in the number of covered reactors.

The House version of H.R. 6 would extend Price-Anderson Act coveragethrough August 1, 2017, while the Senate version would extend coverage for newcommercial reactors through August 1, 2012, and indefinitely extend DOEindemnification authority. In addition, the House bill would raise each reactor’smaximum annual payment for accident damages from $10 million to $15 million andimpose an inflation adjustment, while the Senate bill would leave the annual paymentlevel unchanged.

There are also several House provisions not contained in the Senate bill,including a provision that would authorize the federal government to sue DOEcontractors to recover at least some of the compensation that the government hadpaid for any accident caused by intentional DOE contractor management misconduct.Such cost recovery would be limited to the amount of the contractor’s profit underthe contract involved, and no recovery would be allowed from nonprofit contractors.

The nuclear industry contends that the system has worked well and should becontinued, but opponents charge that Price-Anderson’s liability limits provide anunwarranted subsidy to nuclear power. The House version of H.R. 6 would alsorequire the Nuclear Regulatory Commission (NRC) to issue new regulations onnuclear power plant security and to conduct force-on-force security exercises. Theproposed nuclear liability and security provisions are nearly identical to aPrice-Anderson extension bill passed by the House in the 107th Congress (H.R.2983).

(For more information, see CRS Issue Brief 88090, Nuclear Energy Policy.)

Renewable Fuel Standard. One of the most controversial provisions of theenergy legislation is the establishment of a renewable fuel standard (RFS) intendedto increase the use of ethanol and other renewable fuels. The provision wassupported by the oil industry, ethanol producers, and environmental groups.However, critics argued that it would boost prices to consumers and create shortages.

The House version of H.R. 6 includes a renewable fuel standard (RFS) thatwould require the blending of 2.7 billion gallons of renewable fuel with gasoline in2005. Most of this would be met with ethanol, but other renewable fuels, includingbiodiesel, would qualify. The required volume would rise to 5 billion gallonsannually by 2015. Further, the House version would eliminate the currentreformulated gasoline oxygen requirement.

The Senate version would also establish an RFS. The Senate RFS would be 2.3billion gallons in 2004, increasing to 5.0 billion gallons in 2012. The Senate versionwould also eliminate the reformulated gasoline oxygen requirement. Further, theSenate version would ban the use of MTBE (a major competitor with ethanol)because of groundwater contamination. The House version would not ban MTBE.

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In addition to the above provisions, both bills would shield renewable fuelssuppliers and blenders from defective product liability. The House version wouldprovide similar protection for MTBE.

(For additional information, see CRS Issue Brief IB10041, Renewable Energy:Tax Credit, Budget and Electricity Production Issues.)

Renewable Energy and Efficiency. The Senate version of H.R. 6 wouldrequire retail electricity suppliers (electric utilities, except for municipal andcooperative utilities) to obtain a minimum percentage of their power from a portfolioof new renewable energy resources. The minimum renewable energy target, orRenewable Portfolio Standard (RPS), would start at 1% in 2005, rise at a rate ofabout 1.2% every two years, and level off at 10% in 2019.

Eligible resources for the RPS include solar, wind, ocean, and geothermalenergy, most forms of biomass, landfill gas, and incremental hydropower.Renewables used on site to reduce the measured demand from the grid (defined asa “generation offset”) would also be eligible. The base for calculating the targetproduction level excludes power from eligible renewables, hydropower, andmunicipal solid waste. Thus, states with a large amount of existing biomass, hydro,or other renewable power generation would have a proportionately lower target fornew generation. However, this aspect may be a focus of debate in conference.

Tradable credits would be created, which could be purchased in place of powerfrom other suppliers. The credits would function like the Clean Air Act emissionallowance trading system, which has lowered compliance costs for air pollutionregulations. Electricity suppliers could “borrow” from expected future credits to filla present shortfall or “carry forward” surplus credits to future years. A cost cap forthe credits is set as the lesser of 1.5 cents/kilowatt-hour (kwh) or 200% of the averagemarket value of the credits. The House version of H.R. 6 does not have an RPSprovision.

Both the House and Senate versions direct DOE to issue a rule that “determineswhether” an energy efficiency standard needs to be set for “standby mode” energy useby battery chargers and external power supplies. Further, DOE is directed to createvoluntary programs to reduce standby mode energy use. Also, both versions legislatestandards for illuminated exit signs, torchieres, distribution transformers, and trafficsignal modules, and direct DOE to set standards by rulemaking for suspended ceilingfans, vending machines, commercial refrigerators and freezers, and unit heaters.Further, the Senate version directs DOE to “amend” the energy efficiency standardfor central air conditioners and heat pumps. Also, both versions direct federalagencies to meet progressive annual 2% reductions in energy use by federal buildingsthat culminate in a 20% overall reduction over 10 years.

(For additional information, see CRS Issue Brief IB10020, Budget, OilConservation and Electricity Conservation Issues.)

CRS-6

Overview of House and Senate Versions

The House and Senate versions of H.R. 6 generally address similar areas ofenergy policy, although there are significant differences. For example, only theHouse bill would open ANWR to oil and gas activities, and only the Senate versionincludes extensive provisions explicitly addressing global climate change. Table 1briefly summarizes the major non-tax provisions of the House and Senate versionsof H.R. 6.

Table 1. Major Non-tax Provisions of House and Senate EnergyBills

Provision House Senate

Electricity restructuring Changes regulatoryrequirements toemphasize competitivemarket formation.

Changes regulatoryrequirements toemphasize competitivemarket formation.

Arctic National WildlifeRefuge (ANWR)

Opens ANWR to oiland gas leasing.

No provision.

Corporate Average FuelEconomy (CAFE)

Authorizes furtherCAFE rulemakings.

Requires new CAFEstandards, except forpickup trucks.

Global climate change No specific provisions. Establishes federaloffices to focus onglobal climate change,establishes a nationalgreenhouse gasdatabase, authorizesR&D.

Appliance efficiencystandards

Requires newstandards for appliancestandby power andseveral other uses ofelectricity.

Requires newstandards for central airconditioners, heatpumps, appliancestandby power, andseveral other uses ofelectricity.

Nuclear accident liability(Price-Anderson Act)

Extends Price-Anderson coverage fornew commercialreactors and DOEcontracts. Includesnuclear securityprovisions.

Extends Price-Anderson coverage fornew commercialreactors and DOEcontracts.

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Provision House Senate

Renewable energy contentin motor vehicle fuel

Requires motor vehiclefuel sold in the UnitedStates to contain aminimum volume ofethanol or otherrenewable fuel.

Requires motor vehiclefuel sold in the UnitedStates to contain aminimum volume ofethanol or otherrenewable fuel, bansMTBE.

Renewable PortfolioStandard

No provisions. Requires electricutilities to provideminimum percentagesof power from newrenewable sources.

Energy ProgramAuthorizations, FY2002-FY2006

Authorizes $48.7billion (see Table 2).

Authorizes $54.5billion (see Table 3).

Organization of Report

The remainder of this report provides a section-by-section summary comparisonof the non-tax provisions of H.R. 6 as passed by the House and Senate. The sectionsare listed in numerical order as they appear in the House-passed version. Fundingauthorizations are shown in separate tables following the side-by-side tables. Anumerical index of the Senate sections follows the authorization tables.

The following analysts in the CRS Resources, Science, and Industry Divisioncontributed to this report:

! Amy Abel, electric utilities;! Robert Bamberger, energy security;! Lynne Corn, ANWR;! Carol Glover, Native American energy, general authorizations;! Mark Holt, nuclear energy;! Marc Humphries, federal energy leasing, coal, ANWR;! Larry Kumins, oil and gas, ANWR;! Jim McCarthy, Clean Air Act and MTBE;! Dan Morgan, science programs;! Kyna Powers, hydropower;! Fred Sissine, conservation and renewable energy;! Brent Yacobucci, alternative fuels, climate change.

CRS-8

1 Provisions are organized by House section numbers.

Provision Current Law House Senate Comments

Energy policy. No provision. Sec. 2. It is the sense of theCongress that the UnitedStates should take all actionsnecessary in the areas ofconservation, efficiency,alternative source, technologydevelopment, and domesticproduction to reduce theUnited States’ dependence onforeign energy sources from58% to 45% by January 1,2013.

No provision.

Short Title1


Short titles. No provision. Sec. 10001. This division maybe cited as the “Energy PolicyAct of 2003.”

Sec. 1. This Act may be citedas the “Energy Policy Act of2003.” Sec. 2. Table ofContents.

CRS-9

Energy Conservation

Federal Leadership in Energy Conservation


Energy and watersaving measures incongressionalbuildings.

Section 310 of the LegislativeBranch Appropriations Act of1999 called for the Architectof the Capitol (AOC) todevelop an energy efficiencyplan for congressionalbuildings.

Sec. 11001. The Architect ofthe Capitol is required to planand implement an energy andwater conservation strategyfor congressional buildingsthat is consistent with thatrequired of other federalbuildings. An annual report isrequired. Up to $2 million isauthorized.

Sec. 919. The Architect of theCapitol is required to plan andimplement an energy andwater conservation strategyfor congressional buildingsthat is consistent with thatrequired of other federalbuildings. No fundingauthorization specified.

Energy managementrequirements.

Section 202 of ExecutiveOrder 13123 uses 1985 as thebaseline for measuring federalbuilding energy efficiencyimprovements and calls for a35% reduction in energy useper gross square foot by 2010.

Sec. 11002. The baseline isupdated from 1985 toFY2001 and a new goal of20% reduction is set for 2013. At that time, DOE is directedto assess progress and set anew goal for 2023.

Sec. 911. The baseline isupdated from 1985 to 2000and a new goal of 20%reduction is set for 2011. Atthat time, DOE is directed toassess progress and set a newgoal for 2021.

Energy usemeasurement andaccountability.

No existing requirement. Sec. 11003. Federal buildingsare required to be metered orsub-metered by late 2010, tohelp reduce energy costs andpromote energy savings.

Sec. 912. Federal buildingsare required to be metered orsub-metered by late 2004, tohelp reduce energy costs andpromote energy savings.

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Fuel efficiency of thefederal fleet ofautomobiles.

Executive Order 13149,issued by President Clintonon April 21, 2000, directedthat federal agencies increasethe EPA-rated fuel economyof their new passenger cars byat least 1 mile per gallon(mpg) by the end of FY2002and at least 3 mpg by FY2005from a baseline of FY1999acquisitions.

No similar provision. Sec. 821. Executive agenciesare required to increase theaverage fuel economy of theirnew vehicle purchases by 1mile per gallon (mpg) inFY2002 and 3 mpg inFY2005, from a FY1999baseline. This applies topassenger automobiles andlight-duty trucks, butexcludes vehicles used incombat-related missions, lawenforcement, and emergencyrescue work.

This provision largelycodifies the existing executiveorder.

Federal buildingperformancestandards.

Mandatory energy efficiencyperformance standards forfederal buildings are set inSection 305(a) of P.L. 94-385and implemented through 10CFR Part 435.

Sec. 11004. DOE is directedto set revised energyefficiency standards for newfederal buildings, 30% belowindustry or internationalstandards.

Sec. 913. DOE is directed toset revised energy efficiencystandards for new federalbuildings.

Procurement of energyefficient products.

Federal purchaserequirement.

Section 403 of ExecutiveOrder 13123 directs federalagencies to purchase life-cycle cost-effective EnergyStar products.

No existing requirement.

Sec. 11005. Statutoryauthority is created thatrequires federal agencies topurchase Energy Star orenergy efficient productsdesignated by the FederalEnergy Management Program(FEMP).

Sec. 914. Statutory authorityis created that requires federalagencies to purchase EnergyStar or energy efficientproducts designated by theFederal Energy ManagementProgram (FEMP).

Sec. 263. Federal agencies arerequired to purchase powerproduced from renewables,starting at 3% in FY2003, andrising to 7.5% in FY2010.

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Energy savingsperformance contracts.

Section 801(c) of the NationalEnergy Conservation PolicyAct (NECPA, P.L. 95-619)provides for federal use ofenergy savings performancecontracts (ESPCs) through theend of FY2002.

Sec. 11006. Federal agenciesare empowered to continueusing energy savingsperformance contractsindefinitely.

Sec. 915. Same.

Energy savingsperformance contractdefinitions.

Section 804(2) of NECPAprovides definitions forESPCs.

No similar provision. Sec. 916. The definition ofenergy savings is expanded toinclude a reduction in watercosts.

Review of energysavings performancecontract program.

No existing requirement. No similar provision. Sec. 917. DOE is required toreport to Congress on barriersto the ESPC program andways to improve itseffectiveness.

Federal energy bank. No existing requirement. No similar provision. Sec. 918. A fund isestablished in the U.S.Treasury that can be used forloans to federal agencies forenergy and/or waterefficiency.

Voluntarycommitments to reduceindustrial energyintensity.

While there is no currentstatutory authority, industryenergy efficiency programshave been in place, such asthe former Climate Wiseprogram at the EnvironmentalProtection Agency (EPA).

Sec. 11007. DOE isauthorized to form voluntaryagreements with industrysectors or companies toreduce energy use per unit ofproduction by 2.5% per year.

Sec. 921. Same.

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Federal agencyparticipation indemand reductionprograms.

Section 546(c) of NECPAauthorizes and encouragesfederal agencies to participatein utility incentive programsto increase energy efficiencyand water conservation.

Sec. 11008. Federal agenciesare encouraged to participatein state and regional demand-side reduction programs.

No provision.

Advanced BuildingEfficiency Testbed.

New program. Sec. 11009. DOE is requiredto create a program todevelop, test, and demonstrateadvanced federal and privatebuilding efficiencytechnologies.

No provision.

Increased use ofrecovered mineralcomponent in federallyfunded projectsinvolving procurementof cement or concrete.

No existing requirement. Sec. 11010. Requiresfederally funded projects toincrease the procurement ofcement and concrete that usesrecovered material.

Sec. 920. Same.

Use of photovoltaicenergy in publicbuildings.

No existing requirement. Sec. 11011. The GeneralServices Administration(GSA) is authorized toencourage use of photovoltaicsolar energy systems in newand existing buildings.

No provision.

Telecommuting study. No existing requirement. Sec. 11012. The Secretary ofEnergy shall study the energyconservation potential oftelecommuting by federalemployees.

No provision.

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Fuel efficiency of thefederal fleet ofautomobiles.

Executive Order 13149,issued by President Clintonon April 21, 2000, directedthat federal agencies increasethe EPA-rated fuel economyof their new passenger cars byat least 1 mile per gallon(mpg) by the end of FY2002and at least 3 mpg by FY2005from a baseline of FY1999acquisitions.

No provision. Sec. 821. Executive agenciesare required to increase theaverage fuel economy of theirnew vehicle purchases by 1mile per gallon (mpg) inFY2002 and 3 mpg inFY2005, from a FY1999baseline. This applies topassenger automobiles andlight-duty trucks, butexcludes vehicles used incombat-related missions, lawenforcement, and emergencyrescue work.

These provisions largelycodify the existing executiveorder.

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Energy Assistance and State Programs


LIHEAP andweatherizationassistance.

Department of Health andHuman Services funding forthe Low-Income HomeEnergy Assistance Program(LIHEAP) is currentlyauthorized through FY2003in the Human ServicesAuthorization Act of 1998. DOE Weatherization Programfunding is authorized throughFY2003 under 42 U.S.C.6872. DOE State EnergyProgram funding isauthorized through FY2003under 42 U.S.C. 6322.

Sec. 11021. Increasedfunding is authorized forLIHEAP and Weatherizationgrant programs for FY2004through FY2006.

Sec. 901. Increased funding isauthorized for LIHEAP andWeatherization grantprograms for FY2003 throughFY2005.

State energy programs. Authorization expired. Sec. 11022. New require-ments are set for state energyconservation goals and plans. Also, increased funding isauthorized for FY2004through FY2006 for DOEState Energy grant programs.

Sec. 902. Increased funding isauthorized for FY2003through FY2005 for the DOEState Energy grant programs. Also, new requirements areset for state energyconservation goals and plans.

Energy efficientappliance rebateprograms.

No existing program. Sec. 11023. DOE isauthorized to fund rebateprograms in eligible states tosupport residential end-userpurchases of Energy Starproducts.

Sec. 905. DOE is required tofund rebate programs ineligible states to supportresidential end-user purchasesof Energy Star products.

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Energy-efficient publicbuildings.

No existing program. Sec. 11024. A grant programis created for energy-efficientrenovation and constructionof local governmentbuildings.

Sec. 903. DOE is directed tocreate a High PerformanceSchools Program, a grantprogram for using energy-efficient measures in therenovation and constructionof schools.

Low incomecommunity energy-efficiency pilotprogram.

No existing program. Sec. 11025. A pilot energy-efficiency program is createdfor local governments,community developmentcorporations, and NativeAmerican economicdevelopment entities.

Sec. 904. A pilot energy-efficiency program is createdfor community developmentcorporations and NativeAmerican economicdevelopment entities.

Consumer EnergyCommission.

No provision. No provision. Sec. 1705. An 11-membercommission is established tostudy energy price spikessince 1990. First meeting is tobe held not more than 60 daysafter enactment; report iscalled for in 180 days.

Energy Efficient Products


Energy Star program. Section 403 of ExecutiveOrder 13123 directs federalagencies to purchase life-cycle cost-effective EnergyStar products.

Sec. 11041. DOE and EPAare given statutory authorityfor the Energy Star program.

Sec. 926. DOE and EPA aregiven statutory authority forthe Energy Star program.

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Consumer educationon energy efficiencybenefits of airconditioning, heating,and ventilationmaintenance.

No existing program. Sec. 11042. DOE is requiredto implement a publiceducation program forhomeowners and smallbusinesses that explains theenergy-saving benefits ofimproved maintenance forcertain equipment. Also, theSmall Business Adminis-tration is directed to assistsmall businesses in becomingmore energy efficient.

Sec. 929. A public educationprogram is authorized thatwould address the energy-saving benefits of improvedmaintenance for certainequipment. Also, the SmallBusiness Administration isdirected to assist smallbusinesses in becoming moreenergy efficient.

Additional definitions. Energy terms are defined invarious statutes.

Sec. 11043. Definitions areprovided for several types ofhome appliances, consumerproducts, and energy-usingequipment.

Sec. 923. Terms are definedfor provisions in thesubsequent sections.

Additional testprocedures.

No existing requirement. Sec. 11044. Procedures areprescribed for testing theenergy efficiency of severaltypes of consumer andcommercial products.

Sec. 924. Test procedures areprescribed for exit signs,traffic signals, andtransformers, and DOE isdirected to set procedures forceiling fans, vendingmachines, and commercialrefrigerators.

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Energy conservationstandards foradditional consumerand commercialproducts.

There are no existingrequirements for standbymode nor for the additionalproducts identified.

Sec. 11045. DOE is directedto issue a rule that determineswhether efficiency standardsshall be set for standby modein battery chargers andexternal power supplies. Energy efficiency standardsare set by statute for exitsigns, traffic signals,torchieres, and distributiontransformers. Also, DOE isdirected to issue a rule thatprescribes efficiencystandards for ceiling fans,vending machines,commercial refrigerators andfreezers, and unit heaters.

Sec. 922. DOE is authorizedto set energy efficiencystandards for commercialappliances and products.

Sec. 928. DOE is directed toissue a rule that determineswhether an energy efficiencystandard needs to be set forthe standby operating modeof certain appliances.

Energy labeling. Section 324(a) of the EnergyPolicy and Conservation Act(P.L. 94-163) directed theFederal Trade Commission(FTC) to issue a rule forenergy efficiency labels onconsumer products (42 U.S.C.6294).

Sec. 11046. FTC is requiredto issue a rule that addresseschanges to improve theeffectiveness of energy labelsfor consumer products. Also,DOE or FTC is directed toprescribe labeling require-ments for products added bythis section of the bill.

Sec. 925. FTC is required toissue a rule that addresseschanges to improve theeffectiveness of energy labels. Also, DOE is directed toprescribe labelingrequirements for productsadded by this title of the bill.

Energy conservationstandards for centralair conditioners andheat pumps.

Section 546(c) of NECPA, asimplemented by 10 CFR, setsa seasonal energy efficiencyratio (SEER) standard of 10for central air conditionersand heat pumps.

No similar provision Sec. 927. DOE is directed toamend the standard within 60days after enactment.

A DOE rulemaking late in theClinton Administration set thestandard to a SEER of 13. Early in the BushAdministration a new DOErulemaking rescinded theprevious one and proposed aSEER of 12.

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Study of energyefficiency standards.

No existing provision. Sec. 11047. DOE is directedto have the NationalAcademy of Sciences (NAS)study how the effectivenessof standards may beinfluenced by measures thatfocus either on energy end-use or on the full fuel cycle.

Sec. 930. DOE is directed tohave NAS study how theeffectiveness of standardsmay be influenced bymeasures that focus either onenergy end-use or on the fullfuel cycle.

Oil and Gas

Alaska Natural Gas Pipeline


Short title. The Natural Gas Act (NGA)gives FERC authority tocertificate interstate pipelines.The Alaska Natural GasTransportation Act(ANGTA), 15 U.S.C. 719,creates a process where aproject in the Alaska NaturalGas Transportation Systemmay be recommended andapproved.

Sec. 12001. Short Title is“Alaska Natural Gas PipelineAct of 2003.”

Secs. 701 and 703. Thissubtitle may be called the“Alaska Natural Gas PipelineAct of 2003.” Its purpose isto expedite the completion ofone or more pipelines todeliver Alaskan natural gas tothe contiguous 48 states.

CRS-19


Findings and purposes. No provision. Sec. 12002. The pipeline is inthe national interest andfosters energy security. Thepurpose of the bill is toprovide the project with analternative statutoryframework to that of theAlaska Natural GasTransportation Act of 1976(ANGTA), which remains ineffect.

Sec. 702. North Slope gassupply is declared to be in thenational interest.

While ANGTA remains ineffect, there has been scantprogress in many years. Thebill would offer a fast trackregulatory process, in additionto reinforcing longstandingplans for the Alaska Highwayroute.

FERC has issued a certificatefor the Alaska Gas TransportSystem

Definitions. No provision. Sec. 12003. “Alaska naturalgas” is gas derived from northof 64 degrees North latitude,and the “Alaska natural gastransportation project” is apipeline that carries Alaskagas to the Alaska-Canadaborder.

Sec. 713. This section definesthe concept of Alaska naturalgas as applying to the NorthSlope, including theContinental Shelf. It alsodefines the pipeline system asthat part within the UnitedStates, and subject to FERCjurisdiction.

This language defines AlaskaNorth Slope (ANS) gas insuch a way as to preclude anorthern route under theBeaufort Sea to Canada’sMackenzie Delta.

Issuance of certificateof public convenienceand necessity.

No specific provision. Sec. 12004. The FederalEnergy RegulatoryCommission (FERC) mustissue a certificate within 60 days to an applicantmeeting the requirements ofthe Natural Gas Act (NGA),based on public need andadequate capacity on thedelivery end of the Alaskapipeline. A proposedNorthern route is deniedcertification.

Sec. 704(d). No federalapproval may be granted forany natural gas pipelinetransiting submerged lands orthe shoreline of the BeaufortSea, or for any gas pipelinecrossing the U.S.-Canadianborder north of 68 degreesnorth latitude.

This fast-tracks the regulatoryprocess and excludes theBeaufort Sea proposal, whichwould aid Canadian Arcticgas development.

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Environmentalreviews.

The National EnvironmentalPolicy Act (NEPA) calls forenvironmental review andanalysis.

Sec. 12005. Certification ofthis project would be a majorfederal action NEPA. FERCis designated as the leadagency, preparing anenvironmental impactstatement and coordinatingother agencies’ activities.FERC is directed to issue adraft statement within 12months.

Sec. 705. FERC is designatedas the lead agency forenvironmental reviews of anAlaska gas pipeline. FERCmust issue a draftenvironmental impactstatement (EIS) within 12months after determining thepipeline certificateapplication is complete. Thefinal EIS is to be issued 6months after the draftstatement.

Pipeline expansion. No specific provision. Sec. 12006. FERC mustassure that shipping rates forexpanded capacity would notresult in subsidization ofexpansion shippers byexisting shippers. Such ratesmust ensure that the addedcapacity would not jeopardizepipeline economics orenvironmental andoperational aspects.

Sec. 706. FERC has authorityto order pipeline expansion,contingent upon approvedtariffs and firm shipperagreement.

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Federal coordinatorand expeditedcertification.

ANGTA, NGA both addresscertification procedures.

Sec. 12007. A FederalCoordinator, appointed by thePresident, is established toensure that federal agenciesexpeditiously dischargeresponsibilities for thepipeline.

Sec. 704. FERC must issue acertificate for a proposedAlaskan gas pipeline based onNatural Gas Act criteria,notwithstanding the AlaskaNatural Gas TransportationAct. A certificate must beissued within 60 days of afinal environmental impactstatement.

Sec. 707. A new executivebranch office, the FederalCoordinator for AlaskaNatural Gas TransportProjects, is established tocoordinate the expeditiousdischarge of all federalagency activities andcompliance with this act.

Judicial review. No provision. Sec. 12008. Disputes underthis law must be adjudicatedin the U.S. Court of Appealsfor the D.C. Circuit.

Sec. 708. Legal challenge toagency actions under this billare directed to the U.S. Courtof Appeals for the D.C.Circuit.

State jurisdiction overin-state delivery ofnatural gas.

No provision. Sec. 12009. Alaska shallretain jurisdiction over gassold within the state, as wellas future intra-state pipelines.

Sec. 709. Intrastate gasdeliveries will not beregulated by FERC.

This offers Alaskanconsumers the right of firstrefusal.

CRS-22


Study of alternativemeans of construction.

No provision. Sec. 12010. If no applicationfor a certificate is filed within18 months, the Secretary ofEnergy will study pipelinealternatives and report thefindings to Congress.

Sec. 711. If no commercialpipeline application is filedwithin 18 months ofenactment, DOE is instructedto conduct a study of havingthe project undertaken by agovernment corporation.

Loan guarantee. No provision. No provision. Sec. 710. Loan guarantees ofup to $10 billion are providedfor an Alaska gas transportsystem certified by FERC.Project sponsors are requiredto “put 20% down”; otherterms and conditions are to beworked out by the Secretaryof Energy.

Clarification ofANGTA status andauthorities.

No provision. Sec. 12011. FERC maymodify permits but notchange the fundamentalnature of the pipeline asdesignated in the President’sdecision under ANGTA.

Sec. 712. Nothing in this billaffects ANGTA. DOE hasauthority to amend existingtransport plan to bring it up todate.

Sense of Congress. No provision. Sec. 12012. It is the sense ofCongress that the pipelinewill provide significanteconomic benefits to theUnited States and Canada.

Sec. 714. It is the sense of theSenate that commercial-ization of Alaskan gas iseconomically important toboth the United States andCanada. It is urged that NorthAmerican steel be used inpipeline construction, and thatthe project sponsors negotiatea project labor agreement toexpedite construction.

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Participation of smallbusiness concerns.

No provision. Sec. 12013. It is the sense ofCongress that small businessconcerns should participate tothe maximum extent possible.The General AccountingOffice (GAO) shall studysmall business participationand report to Congress 1 yearafter enactment, and at leastonce every 5 years thereafter.

No provision.

Alaska pipelineconstruction trainingprogram.

A workforce investmentsystem has been establishedin the State of Alaska underthe Workforce InvestmentAct of 1998 (112 Stat. 936 etseq.).

Sec. 12014. The Secretary ofLabor is authorized to makegrants through the Alaskaworkforce developmentsystem to train workers forgas pipeline jobs.

Sec. 715. The Secretary ofLabor is to report to Congresswithin 6 months on thetraining requirements neededfor Alaska residents toparticipate in pipelineconstruction. The Secretaryis tasked with establishingsuch program within 1 year ofthe report.

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Strategic Petroleum Reserve


Full capacity ofStrategic PetroleumReserve.

The Administration currentlyis seeking, subject to marketconditions, to fill the StrategicPetroleum Reserve (SPR) toits current capacity of 700million barrels asexpeditiously as possible.

Sec. 12101. The SPR must befilled to its current capacity“by the most practicable andcost-effective means,”including collection ofroyalty-in-kind oil. The fillrate should have a minimumeffect on oil markets.

Sec. 609. The President mustfill the SPR to its currentcapacity “as soon aspracticable” by the “mostpracticable and cost-effectivemeans.”

Strategic PetroleumReserve expansion.

No provision. Sec. 12102. The Secretary ofEnergy must transmit a planto Congress for expansion ofthe SPR to 1 billion barrels. Following the plan, theSecretary is to acquireproperty and build theadditional capacity, for whichthe legislation wouldauthorize $1.5 billion.

No comparable provision.

Permanent authority tooperate the StrategicPetroleum Reserve andother energyprograms.

SPR operating authorityexpires at the end of FY2003under the Energy Policy andConservation Act (EPCA,P.L. 94-163).

Sec. 12103. Authorization ofthe Strategic PetroleumReserve is made permanent,subject to appropriations.This eliminates the need forperiodic reauthorization.

Sec. 601. Authorization ofthe Strategic PetroleumReserve is made permanent,subject to appropriations.This eliminates the need forperiodic reauthorization.

This provision would avoidperiods such as wasexperienced in 2000, whenauthorization expired at theend of March and Congresswas unable to reachagreement on reauthorizationuntil November.

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Hydraulic Fracturing


Hydraulic fracturing. The Safe Drinking Water Act(SDWA) requires controls onunderground injection offluids to protect sources ofdrinking water (42 U.S.C.300h-300h-5). The Actdefines the term“underground injection” tomean the subsurfaceemplacement of fluids bywell injection, not includingthe underground injection ofnatural gas for purposes ofstorage.

Sec. 12201. SDWA’sdefinition of “undergroundinjection” (42 U.S.C.300h(d)) is amended toexclude the injection ofhydraulic fracturing fluids foroil and gas production.

Sec. 610. EPA is required toconduct a study of the effectsof hydraulic fracturing ofhydrocarbon-bearing geologicformations on undergroundsources of drinking water anddetermine whether regulationis necessary. If regulationsare deemed unnecessary,states will be relieved fromfurther obligation to regulatehydraulic fracturing.

Hydraulic fracturing involvesthe injection of fluids intounderground formations toenhance the recovery of oiland natural gas. EPA has notconsidered hydraulicfracturing to fall withing theregulatory definition of “underground injection,”having interpreted it toencompass only those wellswhose “principal function” isthe undergroundemplacement of fluids. In1997, the U.S. Court ofAppeals, 11th Circuit, foundEPA’s interpretation ofunderground injectioninconsistent with the languageof the statute, thus openinghydraulic fracturing toregulation under SDWA. TheHouse provision explicitlyexcludes hydraulic fracturingfrom the definition of“underground injection.”

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Unproven Oil and Natural Gas Reserves Recovery Program


Program. No provision. Sec. 12301. DOE shallconduct a technology demonstration program forcertain oil and gas reservoirs.

No provision. “Secondary recovery” of oilfrom depleted reservoirs maybecome an importantcomponent of domesticsupply.

Eligible reservoirs. No provision. Sec. 12302. Demonstrationreservoirs are those havingcomplex geology or lowpressure, or found in tightsands, coal seams, or shales.

No provision.

Focus areas. No provision. Sec. 12303. Focus areas forthe program include coal-seams, tight sands, deepwells, directionally drilledwells, and enhanced recoverytechniques.

No provision.

Limitation on locationof activities.

No provision. Sec. 12304. Programs arelimited to onshore U.S. sites.

No provision.

Programadministration.

No provision. Sec. 12305. Fullresponsibility for thisprogram rests with theSecretary of Energy, whoshall contract with aconsortium to manage awardsand make projectrecommendations.

No provision.

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Advisory Committee. No provision. Sec. 12306. The Secretaryshall establish an advisorycommittee not later than 270days after enactment.

No provision.

Limits onparticipation.

No provision. Sec. 12307. Only U.S.-ownedentities with production ofless than 1,000 barrels perday of oil equivalent areeligible for the demonstrationprogram, unless it isotherwise in the U.S.economic interest.

No provision.

Payments to federalgovernment.

No provision. Sec. 12308. 95% of eachdemonstration project’srevenues must go to thefederal government until theproject’s grant is fully repaid.After the grant is repaid, thefederal government willcontinue to receive 5% of theproject’s revenues.

No provision.

Authorization ofappropriations.

No provision. Sec. 12309. $100 million isauthorized, to remainavailable until expended.

No provision.

Public availability ofproject results andmethodologies.

No provision. Sec. 12310. Results ofprojects are to be madepublic.

No provision.

Sunset. No provision. Sec. 12311. September 30,2010, marks the end ofprogram authority.

No provision.

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Definitions. No provision. Sec. 12312. “Programconsortium” and other termsare defined.

No provision.

Miscellaneous


Appeals relating topipeline constructionprojects.

No coordination mechanismexists linking proceedingsunder NGA and other lawsbearing on pipelineconstruction issues. Eachagency having jurisdictionproceeds at its own pace.

Sec. 12401. For appeals aboutpipeline constructionproceedings made under lawsother than NGA, agencies areto use records compiled byFERC exclusively, and nothold a new evidentiaryhearing. It is the sense ofCongress that other federaland state agencies shouldcoordinate proceedings withFERC’s.

No provision. Attempts to keep project onfast track by avoidingredundant evidentiaryhearings.

Natural gas marketdata transparency.

No provision. Sec. 12402. FERC is toestablish an electronicinformation system providingpublic access to interstate gastrading data (e.g.: price, size,quantity, time of trade, etc.),such that markets operatewith reliable information.

No provision. Addresses post-ENRON needfor confidence in gas markets.Would establish a transparentopen access marketplacewhere gas could be tradedfree of manipulation.

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Oil and gas explorationand productiondefined.

The term “oil and gasexploration and production”is used in section 502 of theFederal Water PollutionControl Act (33 U.S.C. 1362).

Sec. 12403. “Oil and gasexploration and production,”as used in the Federal WaterPollution Control Act,includes all drill-site activity,including preparation.

No provision.

R&D for remediationof groundwater fromenergy activities.

No specific provision. No provision. Sec. 1262. DOE shallconduct research to improvemethods for environmentalrestoration of groundwatercontaminated by oil and gasproduction and other energyactivities. Annual funding of$10 million is authorized forFY2003 through 2006.

Complex welltechnology testingfacility.

No provision. Sec. 12404. DOE shallestablish a Complex WellTechnology Testing Facilityat the Rocky MountainOilfield Testing Center toincrease the range of drillingcapability to 50,000 feet.

No provision.

Pipeline SafetyImprovement Act of2002.

Provisions for pipeline safetyand security are found at 49U.S.C 60101.

No provision. Sec. 741 -783. the “PipelineSafety Improvement Act of2003.”

This portion of the bill waslargely enacted into law asP.L. 107-355, signedDecember 17, 2002.

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Energy infrastructureacross the Great Lakes.

No provision. No provision. Sec. 1706. The Secretary ofEnergy is to conduct a studyof the environmental impactsof any energy infrastructure(including gas pipelines)transiting the Lakes and howthey might be minimized. AnNAS advisory committeeshall be established.

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Hydroelectric

Alternative Conditions


Alternative conditionsand fishways(continued in nextrow).

The Federal Power Act (FPA,16 U.S.C. 791a, et seq.)authorizes the Federal PowerCommission, later renamedthe Federal EnergyRegulatory Commission(FERC), to license non-federal hydropower facilities. Sections 4(e) and 18 of theFederal Power Act authorizecertain federal agencies toimpose conditions orprescribe fishwayconstruction on hydropowerlicense applicants.

Sec. 13001. Agenciesimposing conditions orprescribing fishwayconstruction on hydropowerlicense applicants underSection 4(e) and Section 18of the Federal Power Actmust consider alternativemeasures proposed by theapplicant, and accept thosealternative measures if they “will be no less protective ofthe fish resources than thefishway initially prescribed,”and would either cost less orresult in more powerproduction. (Continued innext row.)

Sec. 301 (a) and (b).Agencies imposing conditionsor prescribing fishwayconstruction on hydropowerlicense applicants underSection 4(e) and Section 18of the Federal Power Actmust consider alternativemeasures proposed by theapplicant, and accept thosealternative measures if thealternative condition“provides for the adequateprotection and utilization ofthe reservation,” or if thealternative fishway “will beno less (Continued in nextrow.)

See CRS Issue Brief IB10122Hydropower LicenseConditions and theRelicensing Process.

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Alternative conditionsand fishways(continued from rowabove).

(See row above.) Sec. 13001. (continued fromrow above) When issuing acondition, the agency mustgive equal consideration tothe effects of each conditionon energy supply,distribution, cost, and use;flood control; navigation;water supply; and air quality(in addition to thepreservation of other aspectsof environmental quality). FERC may refer the agency’sdecision to the Commission’sDispute Resolution Service(DRS). The DRS issues anon-binding advisory. Noprovision in this sectionprohibits other interestedparties from proposingalternative conditions.

(continued from row above) protective of the fishresources than the fishwayinitially prescribed,” andwould either cost less orresult in more powerproduction.No provision in this sectionprohibits other interestedparties from proposingalternative conditions.

(See row above.)

Time of filingapplication.

License applicants must file24 months prior to expirationof old license (16 U.S.C.808(c)(1)).

No provision. Sec. 301 (c). Licenseapplicants must file 36months prior to expiration forlicenses that expire in 2008and thereafter.

This provision is aimed atreducing the number ofannual interim licenses that“do not provide certainty forconsumers or the utility andresult in delays inenvironmental mitigation andenhancement,” according toSenator Smith.

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Additional Hydropower


Hydroelectricproduction incentives.

No provision. Sec. 13201. The Secretary ofEnergy shall make incentivepayments to non-federalowners or operators ofhydroelectric generatingfacilities added to existingdams or conduits within 10years of the date ofenactment. Payments of 1.8cents per kwh, up to a total of$750,000/year per facility,may be made for up to 10fiscal years after a facilitybegins operating.

Sec. 261. Eligibility isextended to certain publicutilities. Qualifying resourcesare expanded to includelandfill gas, incrementalhydro, and ocean energy. Funding for hydro may notexceed 30% of the total(also similar to Sec. 16072).

Hydroelectricefficiencyimprovement.

No provision. Sec. 13202. The Secretary ofEnergy shall make incentivepayments to the owners oroperators of hydroelectricfacilities who make capitalimprovements on existingfacilities that improveefficiency by at least 3%. Payments shall not exceed10% of the improvement costand shall not exceed$750,000 at any singlefacility.

No provision.

Small hydroelectricpower projects.

The Public Utility RegulatoryPolicies Act of 1978 definesexisting dams as thosecompleted by April 20, 1977(PURPA, 16 U.S.C. 2078).

Sec. 13203. The date on orbefore which a dam must beconstructed to qualify as anexisting dam is changed toMarch 4, 2003.

No provision.

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Increased hydroelectricgeneration at existingfederal facilities.

No provision. Sec. 13204. Within 2 yearsafter the date of enactment,the Secretary of Energy willsubmit studies, for each waterbasin, that identify anddescribe: 1) opportunities toimprove efficiency ofhydropower generation, 2)opportunities to improveefficiency of the use of watersupplied or regulated byfederal projects, 3)opportunities to createadditional hydropowergenerating capacity atexisting facilities, and 3) apreliminary assessment of thecosts, and economic andenvironmental consequences,of such measures. TheSecretary of Energy maychoose not to perform newstudies when recent studiesexist.

No provision.

CRS-35

Nuclear Matters

Price-Anderson Act Amendments


Short title. The Price-Anderson Act,dealing with liability fornuclear accidents, generallyconsists of Sec. 170 of theAtomic Energy Act of 1954(AEA, 42 U.S.C. 2210). Keyterms are defined at 42 U.S.C.2014.

Sec. 14001. This subtitle(sections 14001-14015) maybe cited as the “Price-Anderson Amendments Actof 2003.”

Sec. 501. This subtitle(sections 501-509) may becited as the “Price-AndersonAmendments Act of 2003.”

Extension ofindemnificationauthority for NRClicensees.

Nuclear RegulatoryCommission (NRC) authorityto provide indemnificationunder Price-Anderson to newreactors and other licenseesexpires December 31, 2003(AEA Sec. 170 c.).

Sec. 14002(a). NRCindemnification authority isextended through August 1,2017.

Secs. 502(a). NRCindemnification authority isextended through August 1,2012.

Without the extension,existing reactors wouldcontinue to be covered byPrice-Anderson, but newreactors would not.

Extension ofindemnificationauthority for DOEcontractors.

DOE authority to indemnifynuclear contractors againstradiological damage claimsby members of the publicexpires December 31, 2004(AEA Sec. 170 d.).

Sec. 14002(b). DOE’sindemnification authority isextended through August 1,2017.

Sec. 502(b). DOE’sindemnification authority isextended indefinitely.

Without an extension, newDOE contracts would notinclude Price-Andersonindemnification, althoughexisting contracts would stillbe covered.

Extension ofindemnificationauthority for nonprofiteducationalinstitutions.

NRC authority to indemnifynonprofit educationalinstitutions expired August 1,2002 (AEA Sec. 170 k).

Sec. 14002(c). NRCindemnification authority fornonprofit educationalinstitutions is extendedthrough August 1, 2017.

Secs. 502(c). NRCindemnification authority fornonprofit educationalinstitutions is extendedthrough August 1, 2012.

Without an extension, newNRC reactor licenses fornonprofit educationalinstitutions are not covered,but coverage continues forlicenses issued before August1, 2002.

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Maximum commercialreactor assessment.

The commercial reactorliability limit is equal to themaximum available liabilityinsurance, plus maximumcontributions of $63 millionper reactor (adjusted forinflation since 1988), plus a5% surcharge, currentlytotaling about $10.9 billion. Compensation contributionsare paid at a rate of no morethan $10 million per reactorper year (AEA Sec. 170 b.).

Sec. 14003. Maximum totalcontributions by eachcommercial reactor followingan accident are raised to $94million (to be adjusted forinflation every five years afterenactment). Maximumannual contributions perreactor are raised from $10million to $15 million, to beadjusted for inflation.

No provision. Total available reactorincident compensationincreases would be about $10billion under the Houseprovision.

Department of Energyliability limit.

The liability limit for publicdamages resulting from anuclear incident by a DOEcontractor is about $9.5billion. The contractorliability limit is based on thelimit for commercial nuclearreactors (AEA Sec. 170 d.).

Sec. 14004. The DOEcontractor liability limit israised to $10 billion, subjectto an inflation adjustmentunder Section 14007.

Sec. 503. The DOEcontractor liability limit israised to $10 billion, subjectto an inflation adjustmentunder Section 506.

Incidents outside theUnited States.

The liability limit for nuclearincidents outside the UnitedStates is $100 million (AEASec. 170 d., e.).

Sec. 14005. The limit is raisedto $500 million.

Sec. 504. The limit is raisedto $500 million.

Reports on Price-Anderson extension ormodification.

No future reports on thissubject required.

Sec. 14006. DOE and theNuclear RegulatoryCommission (NRC) shallsubmit reports to Congress byAugust 1, 2013, torecommend continuation ormodification of the Price-Anderson Act.

Sec. 505. DOE and theNuclear RegulatoryCommission (NRC) shallsubmit reports to Congress byAugust 1, 2008, torecommend continuation ormodification of the Price-Anderson Act.

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Inflation adjustment. Every five years NRC mustadjust for inflation, using theaggregate percentage changein the Consumer Price Index,the maximum compensationcontribution that each reactormust make following anuclear incident (AEA Sec.170 t.). If the NRC inflationadjustment raises the reactorliability limit above theexisting DOE contractorlimit, the contractor limit israised to the same level (AEASec. 170 d.).

Sec. 14007. In addition to theNRC inflation adjustment,DOE must make a similaradjustment of the $10 billionnuclear contractor accidentliability limit every five years.

Sec. 506. In addition to theNRC inflation adjustment,DOE must make a similaradjustment of the $10 billionnuclear contractor accidentliability limit every fiveyears.

Both versions would eliminatethe existing link betweencommercial reactor and DOEcontractor liability limits,requiring a separate inflationadjustment for DOEcontractors.

Price-Andersontreatment of modularreactors.

All commercial nuclearreactors with electricgenerating capacity of 100megawatts or more aresubject to Price-Anderson’smaximum payments foraccident damages andrequirements for insurancecoverage (AEA Sec. 170 b.).

Sec. 14008. Two or morereactors at a single site, eachwith electric generatingcapacity of 100-300megawatts and totaling nomore than 1,300 megawatts,shall be treated as a singlereactor in assessing accidentcompensation contributionsand insurance requirements.

Sec. 508. Two or morereactors at a single site, eachwith electric generatingcapacity of 100-300megawatts and totaling nomore than 1,300 megawatts,shall be treated as a singlereactor in assessing accidentcompensation contributionsand insurance requirements.

This provision would allow a“modular” nuclear plant madeup of several small reactors topurchase insurance coverageas if the plant consisted of asingle reactor. The entiremodular plant also would onlybe liable for the accidentcompensation payments of asingle reactor.

Effective date. No provision. Sec. 14009. The increasednuclear liability limits in thissubsection shall apply only toaccidents that occur after thedate of enactment.

Sec. 509. The increasednuclear liability limits in thissubsection shall apply only toaccidents that occur after thedate of enactment.

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Prohibition onassumption by UnitedStates Government ofliability for certainforeign accidents.

No provision. Sec. 14010. The federalgovernment may not acceptliability for nuclear accidentsin nations found to supportterrorism.

No provision.

Secure transfer ofnuclear materials.

No provision. Sec. 14011. Nuclear materialstransferred from NRC- orstate-licensed facilities, orfrom countries with U.S.nuclear cooperationagreements, must beaccompanied by a shippingmanifest. Every workerinvolved in such shipmentsmust have undergone afederal security backgroundcheck. Such materials maybe shipped only to licensedfacilities, other “appropriate”federal facilities, or countrieswith U.S. nuclear cooperationagreements.

No provision.

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Nuclear facilitythreats.

AEA provides generalauthority for NRC securityregulation.

Sec. 14012. In consultationwith NRC and otherappropriate federal agencies,the President shall identifyspecific types of securitythreats to nuclear facilities. The President shall issue areport on actions taken or tobe taken to address theidentified threats, and NRCshall issue regulations toprotect against the threats. NRC shall periodicallyconduct force-on-forceexercises to test nuclearfacility security. Release ofsecurity information shall becontrolled, consistent withAEA requirements.

No provision.

Unreasonable riskconsultation.

No provision. Sec. 14013. Before providingPrice-Anderson coverage to anew reactor, NRC mustconsult with the Secretary ofHomeland Security aboutwhether the reactor’s designand location provide adequatepublic protection in case of aterrorist attack. Beforerenewing a nuclear plantlicense, NRC must consultwith the Secretary ofHomeland Security about theplant’s evacuation planning.

No provision.

CRS-40


Recovery of paymentsfor intentional DOEcontractor misconduct.

No provision. Sec. 14014. If DOE has topay compensation for anaccident caused by theintentional misconduct of afor-profit contractor, theAttorney General may file alawsuit to recover suchcompensation from thecontractor, up to the amountof profit earned on thecontract.

No provision.

Civil penalties forDOE nuclearcontractors.

Specific nonprofit DOEcontractors who violatenuclear safety regulations areexempt from civil penalties. DOE may automatically remitnuclear safety fines paid byany nonprofit educationalinstitution (AEA Sec. 234A.).

Sec. 14015. The exemptionfor specific nonprofit DOEcontractors is replaced byprovisions limiting nuclearsafety penalties on anynonprofit contractor to theamount of the managementfee it has earned under a DOEcontract. DOE authority toremit fines paid by nonprofiteducational institutions isrepealed.

Sec. 507. The exemption forspecific nonprofit DOEcontractors is replaced byprovisions limiting nuclearsafety penalties on anynonprofit contractor to theamount of the managementfee it has earned under a DOEcontract within any one-yearperiod. DOE authority toremit fines paid by nonprofiteducational institutions isrepealed.

CRS-41

Miscellaneous Matters


Commercial reactorlicense period.

For a commercial nuclearreactor that receives acombined construction andoperating license from NRC,the initial 40-year licenseperiod could begin whenNRC grants a combinedlicense for a reactor, beforeconstruction has started andyears before the start ofoperation (AEA Section 103c.).

Sec. 14021. The 40-yearlicense period for a combinedlicense will not begin untilNRC determines that thecompleted reactor is ready tostart operating.

Sec. 521. A reactor’soperating period under acombined license shall be noshorter than if separateconstruction and operatinglicenses had been issued.

Nuclear RegulatoryCommission meetingtranscripts.

No provision. Sec. 14022. If a quorum ofNRC Commissioners meets todiscuss official business, atranscript of non-confidentialdiscussions at the meetingmust be made available to thepublic.

No provision.

NRC trainingprogram.

No specific provision. Sec. 14023. Funding isauthorized for NRC to carryout a training and fellowshipprogram to develop criticalnuclear safety skills.

No provision.

Cost recovery fromGovernment agencies.

Federal agencies must payfees to NRC for certainlicensed activities (AEA Sec.161 w.).

Sec. 14024. NRC may imposelicensing and other cost-basedfees on all NRC-licensedactivities conducted by otherfederal agencies.

No provision.

CRS-42


Elimination of pensionoffset for critical NRCpersonnel.

No provision. Sec. 14025. If NRC has acritical need for the skills of aretired employee, NRC canhire the retiree as a contractorand exempt him or her fromthe annuity reductions thatwould otherwise apply.

No provision.

Carrying of firearmsby licensee employees.

NRC employees andcontractors may carryfirearms and make arrests toprotect U.S. property (AEASec. 161 k.).

Sec. 14026. Authority to carryfirearms and make arrests isextended to employees ofnuclear power plants andother NRC-regulated facilitiesand their contractors.

No provision. The House provision wouldcounter some state laws thatpreclude private guard forcesfrom utilizing some weapons.

Unauthorizedintroduction ofdangerous weapons.

NRC may regulate the entryof weapons or dangerousmaterials into NRC facilities(AEA Sec. 229 a.).

Sec. 14027. NRC controls onweapons and dangerousmaterials are extended tonuclear plants and otherNRC-regulated facilities.

No provision.

Sabotage of nuclearfacilities or fuel.

Any person who intentionallydamages an NRC-licensedfacility may be fined $10,000and imprisoned for 10 years(AEA Sec. 236 a.).

Sec. 14028. Maximumpenalties for sabotage areincreased to $1 million andlife imprisonment withoutparole.

No provision. The House language clarifiesthat the penalties apply tofacilities “certified” as well as“licensed” by NRC, and alsoto sabotage to facilities underconstruction.

Cooperative researchand development andspecial demonstrationprojects for theuranium miningindustry.

No specific provisions. Sec. 14029. Funding isauthorized for cost-sharedresearch between DOE anddomestic uranium producerson in-situ leaching miningtechnologies and relatedenvironmental restorationtechnologies.

No provision.

CRS-43


Government uraniumsales.

DOE may sell its uraniumstockpiles under certainconditions (42 U.S.C. 2297h-10).

Sec. 14030. With certainexceptions, DOE uraniumsales are restricted to 3million pounds per year from2004-2009, rising to 10million pounds per year after2012. DOE may transfer9,550 metric tons of uraniumto USEC Inc.

Sec. 511. With certainexceptions, DOE uraniumsales are restricted to 3million pounds per year from2003-2009, rising to 10million pounds per year after2012.

Exports of highlyenriched uranium formedical isotopeproduction.

Highly enriched uranium(HEU) cannot be exportedunless the foreign recipientagrees to switch to lowenriched uranium (LEU) assoon as possible and suitableLEU fuel is actively underdevelopment (AEA Sec. 134).

Sec. 14031. HEU may beexported to Canada, BelgiumFrance, Germany, and theNetherlands for production ofmedical isotopes. HEUexports also may beauthorized to other countriesthat meet additional criteria. All HEU recipients mustagree to switch to suitableLEU fuel if it becomesavailable.

No provision. The current limit on HEUexports, known as the“Wyden Amendment,” isintended to ensure thatforeign reactor operatorscooperate with U.S. efforts toconvert all HEU reactors toLEU. Supporters of theexemption contend that theexisting restrictions coulddisrupt production of medicalisotopes from foreign reactorsfueled with HEU.

Highly enricheduranium diversionthreat report.

No provision. Sec. 14032. DOE shall submita report to Congress onreducing the threat of stolenor diverted highly enricheduranium.

No provision.

CRS-44


Whistleblowerprotection.

Employees of nuclear powerplants and other NRC licenseeand employees of DOEcontractors may filecomplaints with the Secretaryof Labor if they are fired orpunished for raising concernsabout violations of theAtomic Energy Act (42U.S.C. 5851).

Sec. 14033. DOE and NRCemployees are given the same“whistleblower” protection asemployees of contractors andlicensees. An employeewhose complaint does notreceive a final decision by theSecretary of Labor within 180days may take the case tofederal court.

No provision.

Preventing the misuseof nuclear materialsand technology.

No provision. Sec. 14034. No U.S. nuclearmaterials or technology maybe exported to any countrythat, as of September 11,2001, had been determined bythe State Department to be asupporter of internationalterrorism.

No provision. The House provision wouldblock implementation of a1994 agreement under whichNorth Korea was to receive aU.S.-designed nuclear powerplant in return for abandoningits nuclear weapons program.

Limitation on DOEreimbursement of legalfees.

No provision. Sec. 14035. Except asrequired by existing contracts,DOE shall not reimburse itscontractors for legal expensesincurred in defending against“whistleblower” complaintsthat are ultimately upheld.

No provision.

Transfer of WestValley nuclear site toDOE.

No provision. Sec. 14036. DOE shalltransmit to Congress by theend of 2003 a plan for takingownership of the West Valleynuclear site from the State ofNew York.

No provision. DOE is cleaning up nuclearfuel reprocessing facilities atthe site, with the State of NewYork paying 10% of the cost.But there has been a disputebetween DOE and the stateabout future cleanupresponsibilities.

CRS-45


Study of developingcommercial nuclearpower plants at DOEsites.

No provision. Sec. 14037. DOE shall studythe feasibility of developingcommercial nuclear powerplants at existing DOE sites.

No provision.

Thorium cleanupreimbursement.

DOE is authorized toreimburse up to $365 millionin government-relatedcleanup costs to the owner ofa thorium processing site (42U.S.C. 2296a).

No provision. Sec. 512. The thoriumreimbursement authorizationis raised from the previouslevel of $140 million to $365million.

Senate language is nearlyidentical to thoriumreimbursement provisions inP.L. 107-222, signed August21, 2002, which raisedthorium reimbursement to$365 million.

Fast Flux Test Facility. No comparable provision. No provision. Sec. 513. DOE is prohibitedfrom restarting the Fast FluxTest Facility (FFTF), a testreactor at Hanford,Washington, if the proposedmissions can be conducted atother facilities that arealready operating.

Sec. 2344(c) of the House billprohibits nuclear energyoperation and maintenancefunds from being used forFFTF, although restart is notspecifically mentioned. DOEbegan dismantling the facilityApril 7, 2003.

ReactorDecommissioning PilotProgram.

No provision. Sec. 516. DOE shalldecontaminate anddecommission the sodium-cooled test reactor innorthwest Arkansas.

CRS-46


Commercial reactorantitrust reviews.

NRC must provide copies ofcommercial reactor licenseapplications to the AttorneyGeneral, who must reviewthem for antitrust problemswithin 180 days. If problemsare found, the AttorneyGeneral may become a partyto the licensing proceedings(42 U.S.C. 2135).

No provision. Sec. 531. After receivingnotice from NRC, theAttorney General shall reviewcommercial licenseapplications for antitrustproblems within 90 days. Other antitrust reviewprocedures shall not apply tonew commercial reactorlicense applications.

Protection of reactordecommissioningfunds.

No specific provision. No provision. Sec. 532. Funds set aside fordecontamination anddecommissioning ofcommercial nuclear reactorsshall not be used to satisfycreditors for unrelatedpurposes. Similar protectionis provided to insurancepayments for nuclearincidents under the Price-Anderson Act.

Elimination of pensionoffset for critical NRCpersonnel.

No provision. No provision. Sec. 541. If NRC has acritical need for the skills of aretired employee, NRC canhire the retiree as a contractorand exempt him or her fromthe annuity reductions thatwould otherwise apply.

NRC trainingprogram.

No specific provision. No provision. Sec. 542. Funding isauthorized for NRC to carryout a training and fellowshipprogram to develop criticalnuclear safety skills.

CRS-47

Vehicles and Fuels

Energy Policy Act Amendments


Credit for substantialcontribution towardnoncovered fleets.

Sec. 508 of the Energy PolicyAct of 1992 (EPACT) (42U.S.C. 13258) requires thatstate governments andproducers and suppliers ofalternative fuels (includingelectricity producers) includealternative fuel vehicles as acertain percentage of theirnew light-duty vehiclepurchases. The requirementis 75% for states and 90% forfuel providers.

Sec. 15011. Vehicle purchasecredits are granted to coveredentities that make a“substantial contribution” tothe purchase of alternativefuel vehicles in non-coveredfleets. “Substantial” isdefined as $15,000 or more incash or in-kind services. Double credits are given forthe purchase of medium- orheavy-duty vehicles.

Sec. 819(q). Similarprovision.

Credit for alternativefuel infrastructure.

No provision. Sec. 15012. Vehicle purchasecredits are granted to coveredentities that invest $25,000 ormore in fueling infrastructurefor alternative fuel vehicles.

Sec. 819(r). Similarprovision.

Credit for hybridvehicles.

No provision. No similar provision. Sec. 819(p). Fleet operatorsmay generate credits throughthe purchase of hybridelectric vehicles.

Currently, hybrid vehicles arenot considered alternative fuelvehicles because theirprimary fuel is gasoline.

CRS-48


Alternative fueledvehicle report.

The Energy Policy Act of1992 (EPACT) requires that,of the vehicles purchased byfederal and state agencies andalternative fuel providers in agiven year, a percentage mustbe alternative fuel vehicles(42 U.S.C. 13220).

Sec. 310 of EPACT requireseach federal agency to reportannually on its compliancewith the federal alternativefuel vehicle requirements (42U.S.C. 13218).

Sec. 15013. The Secretary ofEnergy must report toCongress on the effectivenessof Titles III, IV, and V ofEPACT (regarding alternativefuel vehicles and fleets). Thereport must analyze theavailability and cost ofalternative fuels, alternativefuel vehicles, and refuelinginfrastructure (also see Sec.15046).

Sec. 806. Dual-fueled vehiclefleets in executive branchagencies must use alternativefuels 100% of the time byJan. 1, 2009, but the Secretaryof Transportation isauthorized to waive therequirement to 50% of thetime by Jan. 1, 2009, and75% by Jan. 1, 2011. Nowaivers may be extendedbeyond the end of 2012. Additional waiver authority isprovided if the alternativefuel “is not reasonablyavailable” in a particulargeographic area.

Under current law, there is nospecific requirement to usealternative fuels in thesevehicles.

Allocation ofincremental costs.

Sec. 303 of EPACT (42U.S.C 13212) requires that75% of covered light-dutyvehicles purchased by federalagencies be alternative fuelvehicles. Sec. 303(c) allowsagencies to allocate theincremental cost of thosevehicles (the cost differencebetween the alternative fuelvehicle and a comparablegasoline or diesel vehicle)across the whole vehicle fleet.

Sec. 15014. Agencies mustallocate the incremental costsof alternative fuel vehiclesacross the entire fleet.

No provision.

CRS-49


Temporary biodieselcredit expansion.

Sec. 311 of EPACT (42U.S.C. 13220) allows fleetoperators to meet up to 50%of the alternative fuel vehiclepurchase requirement throughthe use of biodiesel fuel. However, fleet operators maynot generate credits for futureyears through the use ofbiodiesel.

No similar provision. Sec. 817. Fleet operators mayclaim alternative fuel vehiclecredits for excess purchasesof biodiesel fuel. Further,fleet operators may usebiodiesel fuel to meet up to100% of required purchasesin a given year.

Neighborhood electricvehicles.

EPACT (42 U.S.C. 13211)defines the term “alternativefuel vehicle.”

No similar provision. Sec. 818. Neighborhoodelectric vehicles may betreated as alternative fuelvehicles for compliance andtax purposes.

Neighborhood electricvehicles (NEVs) are smallelectric vehicles that arecertified for low speeds.

Federal agencyethanol-blendedgasoline and biodieselpurchasingrequirement.

Sec. 306 of EPACT (42U.S.C. 13215) refers to anexpired provision of the Act.

No similar provision. Sec. 820A. A new section306 of EPACT is created. Federal agencies mustpurchase ethanol-blendedgasoline and biodiesel fordiesel blending in areas wherethe fuels are generallyavailable at a competitiveprice. Certain vehicles, suchas non-road, combat,emergency, and lawenforcement vehicles areexempt.

In some places, mainly in theMidwest, ethanol-blendedgasoline comprises themajority of retail gasoline.

CRS-50

Advanced Vehicles


Definitions. Various related definitions arefound in multiple statutes.

Sec. 15021. Several classes ofvehicles are defined,including “alternative fuelvehicle,” “neighborhoodelectric vehicle,” and “ultra-low sulfur diesel vehicle.”

No similar provision.

Pilot program. The Department of Energy,through the Clean CitiesProgram, provides technicaland educational assistance tocities wishing to expand theuse of alternative fuelvehicles.

Sec. 15022. A grant programis established to providegrants for up to 10 separateprojects. Grants may assist inthe purchase of alternativefuel and advanced technologyvehicles or the installation ofalternative fuel refuelinginfrastructure. Eligiblegrantees are stategovernments, localgovernments, andmetropolitan transitauthorities. A maximum of$20 million may be granted toany single project.


CRS-51


Reports to Congress. No provision. Sec. 15023. The Secretary ofEnergy must submit a reportto Congress listing thegrantees and other applicants,as well as detailing the grantselection process. Threeyears after enactment, theSecretary must submit toCongress annual evaluationsof the effectiveness of theprogram.



No provision. Sec. 15024. $200 million isauthorized to carry out theprogram.


Hydrogen Fuel Cell Heavy-Duty Vehicles


Definition andFindings.

No provision. Secs. 15031 and 15032.Terms are defined andcongressional findings arelisted.

No provision.

CRS-52


Hydrogen fuel cellbuses.

No provision. See Sec. 15033 and Sec.23002.

Sec. 807. Appropriations of$225 million to DOE areauthorized for FY2003 toexpand R&D for advancedtechnologies to improve thecleanliness of automobiles. Emphasis is placed on (1) fuel cells, including hightemperature membranes forfuel cells and fuel cellauxiliary power systems; (2)hydrogen storage; (3)advanced vehicle engine andemission control systems; (4)advanced batteries and powerelectronics for hybridvehicles; (5) advanced fuels;and (6) advanced materials.

Bus replacement. Sec. 5111 of theTransportation Equity Act forthe 21st Century (TEA-21,P.L. 105-178) established theAdvanced VehicleTechnologies Program(AVP), which promotesadvanced technologydevelopment throughcontracts, grants, andcooperative agreements.

Sec. 15033. The Secretary ofTransportation, through AVP,is required to establish fourprojects to demonstratehydrogen-fueled fuel cellbuses (also see Sec. 23002).

Sec. 810. The Secretary ofTransportation is required tocarry out a study to determinehow best to replace diesel-fueled buses with buses thatare hybrids, or buses that usefuel cells or cleaner burningalternative and renewablefuels.

While TEA-21 authorized atotal of $250 million over fiveyears for AVP, only $10million total was appropriatedin FY1999 and FY2000. Congress has not appropriatedfunds for AVP since FY2000.

CRS-53



Sec. 5111 of TEA-21authorized $50 millionannually for AVP in FY1999through FY2003. No fundsare authorized in FY2004 orlater.

Sec. 15034. A total of $50million is authorized forFY2004 though FY2008. Funds are authorized for theabove project only.

No provision. As was stated above,Congress has not appropriatedfunds for AVP since FY2000.

Miscellaneous


Railroad efficiency. No provision. Sec. 15041. A public-privateresearch partnership isestablished for thedevelopment anddemonstration of locomotiveengines that increase fueleconomy, reduce emissions,and lower costs. A total of$90 million is authorized forFY2004 through FY2006.

Sec. 1214. Similar to theHouse provision, except that atotal of $130 million isauthorized for FY2003 andFY2004.

Mobile emissionreductions trading andcrediting.

No provision. Sec. 15042. TheEnvironmental ProtectionAgency (EPA) is required tostudy whether allowingmobile and stationary sourcesto trade emissions creditsunder the Clean Air Actwould provide additionalflexibility in attaining andmaintaining air qualitystandards.

No provision.

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Idle reductiontechnologies.

No provision. Sec. 15043. DOE is requiredto study potential fuel savingsfrom reducing long-durationidling of heavy-duty vehicles. EPA is required to studywhether existing models ofair emissions accuratelyreflect emissions from idlingvehicles. Further, EPA isrequired to study whetheremissions reduction creditsshould be granted for theinstallation of idle eliminationsystems.

Sec. 822. DOE is required toconduct a similar study. Once the study is completed,the Secretary of Energy hasthe authority to require theinstallation of idle-reductionsystems on all new heavy-duty vehicles. Further, EPAis not required to assess itsmodels under the Senateprovision.

Study of aviation fuelconservation andemissions.

No provision. Sec. 15044. Within 60 days ofenactment, the Administratorof the Federal AviationAdministration and theAdministrator of EPA arerequired to commence a studyto determine the impact ofaircraft emissions on airquality in ozonenonattainment areas. Thestudy, which is to culminatein a report to Congress within180 days of commencement,is to focus on the impact ofemissions by aircraft idling atairports, withrecommendations concerninghow such emissions may bereduced.

No provision.

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Diesel fueled vehicles. DOE conducts research onadvanced vehicle emissionssystems under its generalresearch authority.

Sec. 15045. The Secretary ofEnergy is directed toaccelerate efforts to improvediesel vehicle combustion andafter-treatment technologies.

Sec. 808. DOE is required toaccelerate R&D for dieselcombustion and aftertreatment technologies withthe objective of enablingdiesel technology to meetTier 2 emission standards notlater than 2010. (Thesestandards will apply to carsand light trucks after the 2003model year.)

Waivers of alternativefueled vehicle fuelingrequirement.

Sec. 400AA (a)(3)(E) of theEnergy Policy andConservation Act (EPCA)requires that dual fuelvehicles (vehicles capable ofusing either an alternativefuel or a conventional fuel)purchased by the federalgovernment operate onalternative fuels wherepracticable.

Sec. 15046. EPCA isamended so that agenciesmust receive a waiver by theSecretary of Energy to beexempted from the fuelingrequirement (also see Sec.15013).

Sec. 806. Dual-fueled vehiclefleets in executive branchagencies must use alternativefuels 100% of the time byJan. 1, 2009, but the Secretaryof Transportation isauthorized to waive therequirement to 50% of thetime by Jan. 1, 2009, and75% by Jan. 1, 2011. Nowaivers may be extendedbeyond the end of 2012. Additional waiver authority isprovided if the alternativefuel “is not reasonablyavailable” in a particulargeographic area.

Under current law, there is nospecific requirement to usealternative fuels in thesevehicles.

Total integratedthermal systems.

No existing provision. Sec. 15047. DOE is directedto study the potential forintegrated thermal systems toreduce oil demand.

No provision.

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Oil bypass filtrationtechnology.

No provision Sec. 15048. The Secretary ofEnergy and the Administratorof EPA are required to studythe potential oil savings fromoil bypass filtrationtechnology, and to assess thefeasibility of using thetechnology in federal vehiclefleets.


Natural gas condensatestudy.

No provision. Sec. 15049. The Secretary ofEnergy is required to studythe possible applications andpotential benefits of fuelsderived from natural gascondensate.


Study on reducingpetroleumconsumption, andprocurement ofalternative fueled andhybrid light-dutytrucks for federalfleets.

Sec. 303 of the Energy PolicyAct of 1992 (P.L. 102-486)required that, by FY1999,75% of vehicle purchases fora federal fleet of 20 or morelight-duty motor vehicles bealternative-fueled vehicles. Exceptions were made foremergency, military and lawenforcement vehicles, amongother uses.

Sec. 15050. The GeneralServices Administration(GSA) is directed to study themerits of setting performancemeasures to help reduce oilconsumption by federal fleets.

Sec. 805. Five percent oflight duty trucks procured forfederal fleets in FY2005-FY2006 must be alternative-fueled or hybrid vehicles.This requirement increases to10% after FY2006.

The targets specified inexisting law have not beenmet.

Conserve by BicyclingProgram.

No existing provision. Sec. 15051. The Departmentof Transportation is directedto conduct a pilot bicyclingprogram and report on it.

Sec. 823. Similar to theHouse provision, except that atotal of $5.5 million isauthorized.

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Exception to HOVpassengerrequirements foralternative fuelvehicles.

States may permit exemptionsfrom high occupancy vehicle(HOV) restrictions forinherently low emissionvehicles (ILEV) (23 U.S.C.102(a)(2)).

No similar provision. Sec. 812. States are permittedto exempt one-passengeralternative fuel vehicles fromHOV restrictions.

Some alternative fuel vehiclesdo not meet the ILEVstandards currently requiredfor the exemption.

Electricity

Transmission Capacity


Transmissioninfrastructureimprovementrulemaking.

FERC must approvetransmission rates charged byutilities. These rates must bejust and reasonable (16U.S.C. 824d).

Sec. 16011. FERC is requiredto establish a rule to create incentive-based transmissionrates. Under the rule, FERCmust approve a transmissionorganization’s request thatnew transmission facilitiesthat increase the transfercapability of the system beparticipant-funded.

No provision.

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Siting of interstateelectrical transmissionfacilities(continued in nextrow).

Transmission siting is theresponsibility of the states.

Federal Land Policy andManagement Act (43 U.S.C.1763).

Sec. 16012. The Secretary ofEnergy will conduct a studyof electric transmissioncongestion every three years. Based on the findings, theSecretary of Energy maydesignate a geographic areaas being congested. Undercertain conditions, FERC isauthorized to issueconstruction permits. Permitholders will be allowed topetition in District Court toacquire rights-of-way through the exercise of the right ofeminent domain. Anyexercise of eminent domainauthority is considered to betakings of private property forwhich just compensation isdue. This section does notapply to the ElectricReliability Council of Texas(ERCOT). An applicant forfederal authorization to sitetransmission facilities onfederal lands may request thatthe Department of Energy bethe lead agency to coordinateenvironmental review andother federal authorization. (continued in next row)

No provision. Under proposed FPA section216(d) there is no specificcomment period required. New FPA section 216(e)appears to be exercisingfederal power of eminentdomain to cross private land.New FPA section 216(g) doesnot clearly state whethercompanies usingcondemnation authority tocross private land mustcomply with NEPA. Newsection 216(h) does not statewhether property owners willbe required to reimbursecompensation if land istransferred back to the owner. New FPA section 216(j)(1)gives DOE new authority toprepare environmentaldocuments and appears togive DOE additionaldecision-making authority forrights-of-way and siting onfederal lands. This wouldappear to give DOE input intothe decision process forcreating rights-of-way. NewFPA section 216(l) would notapply to monuments that arenot managed by the NationalPark Service.

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Siting of interstateelectrical transmissionfacilities (continuedfrom row above).

(See row above.) Sec. 16012 (continued fromrow above). Once acompleted application issubmitted, all relatedenvironmental reviews mustbe completed within 1 yearunless existing federal lawenvironmental reviewdocument is to be used for alldecisions on the proposedproject. Review undersection 503 of the FederalLand Policy and ManagementAct may be streamlined byrelying on prior analyses. Any denial of federal rights-of-way may be appealed bythe applicant or relevant stateto the Secretary of Energy. The Secretary of Energy mustissue a decision within 90days of the appeal’s filing. States may enter intointerstate compacts for thepurposes of sitingtransmission facilities and theSecretary of Energy mayprovide technical assistance.

(See row above.)

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Study of siting anelectric transmissionsystem on Amtrakright-of-way.

None. No provision. Sec. 1703. The Secretary ofEnergy must contract withAmtrak to study thefeasibility of building andoperating a new electrictransmission system on theAmtrak right-of-way in theNortheast Corridor.

Transmissionenhancements.

The Federal Power Act (16U.S.C. 791a and following)gives FERC authority to orderinterconnections with thetransmission system andtransmission capacityadditions necessary to supportthe interconnection (Section210). Section 212 allows thecosts of transmission systemenlargement to be included inthe rates for wholesaletransmission services.

Sec. 16013. FERC is toexercise its authority underthe Federal Power Act toencourage technologies thatwill increase the efficiencyand transfer capability oftransmission networks.

Sec. 210. The FederalGovernment is to be attentiveto transmission issues,including investment,efficiency, and enhancements,that could be addressedthrough government policy.

Investment in thetransmission system has notkept pace with increases ingeneration. The Houseprovision is intended toincrease the capacity ofexisting lines through theimplementation oftechnology. The Senateprovision is intended to usegovernment policy tofacilitate improvements in thetransmission system.

Bonneville Power Administration


Bonneville PowerAdministration Bonds.

Current BPA borrowingauthority is $4.45 billion (16U.S.C 838k, P.L. 108-7).

No similar provision Sec. 272. Bonneville PowerAdministration’s borrowingauthority is increased by $1.3billion to providetransmission systemimprovements.

In FY2003, BPA’s borrowingauthority increased by $700million. BPA is not requestingincreased borrowing authorityin FY2004

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Transmission Operation


Open accesstransmission by certainutilities.

The Federal Power Act(Section 201(f)) does notapply to federal powermarketing administrations,state entities, or rural electriccooperatives (16 U.S.C. 824).

Sec. 16021. FERC isauthorized, by rule or order,to require unregulatedtransmitting utilities (powermarketing administrations,state entities, and ruralelectric cooperatives) tocharge rates comparable towhat they charge themselves,and also require that the termsand conditions of the sales arecomparable to those requiredof other utilities. Exemptionsare established for utilitiesselling less than 4 millionmegawatt-hours of electricityper year, for distributionutilities, and for utilities thatown or operate transmissionfacilities that are notnecessary to facilitate anationwide interconnectedtransmission system. FERCmay remand transmissionrates to an unregulatedtransmitting utility if the ratesdo not comply with thissection.

Sec. 205. Similar provision. Often referred to as “FERC-lite.”

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Regional transmissionorganizations.

No current law. Sec. 16022. It is the sense ofthe Congress that utilitiesshould voluntarily becomemembers of regionaltransmission organizations. Itis the sense of the Congressthat FERC should provideincentive rates fortransmission for those utilitiesthat join regional transmissionorganizations. FERC isrequired to report to Congresswithin 120 days of enactmentthe status of all regionaltransmission organizationapplications. Federal utilities(power marketingadministrations or TennesseeValley Authority) areauthorized to participate inregional transmissionorganizations.

No provision.

Policy on regionalcoordination.

No current law. No provision. Sec.101. The policy of thefederal government is toencourage states tocoordinate, on a regionalbasis, policies to maximizethe reliability of energyservices, including electrictransmission and generation,gas transportation, storage,and distribution, and fuelconservation.

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Federal support forregional coordination.

No current law. No provision. Sec. 102. The Department ofEnergy is directed to providetechnical assistance to statesand regional organizations toassist with activities definedin Sec. 101.

Native load. Section 201 of the FederalPower Act gives FERCjurisdiction over “thetransmission of electricenergy in interstate commerceand the sale of such energy atwholesale in interstatecommerce.” Section 205 ofthe Federal Power Actprohibits utilities fromgranting “undue preference oradvantage to any person orsubject any person to anyundue prejudice ordisadvantage” (16 U.S.C.824).

Sec. 16023. A load-servingentity is entitled to use itstransmission facilities ortransmission rights to serve itsexisting customers before it is obligated to make itstransmission capacityavailable for other uses.

No provision. This section is intended toclarify that reservingtransmission for existingcustomers is not consideredunduly discriminatory.

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Reliability


Electric reliabilitystandards.

No current law. Sec. 16031. FERC is requiredto issue a rule to implementrequirements of this sectionnot later than 180 days afterenactment. FERC is requiredto certify an electricreliability organization(ERO). The FERC-approvedelectric reliabilityorganization will develop andenforce reliability standardsfor the bulk-power system.Standards are enforceable bythe electric reliabilityorganization. The provisiondoes not apply to Alaska orHawaii.

Sec. 206. Similar provision This would give an electricreliability organization(currently the NorthAmerican Electric ReliabilityCouncil (NERC)) the primaryauthority to developreliability standards.

Access to transmissionby intermittentgenerators.

No specific law. No provision. Sec. 208. FERC must requiretransmitting utilities toprovide service to solar andwind generators at rates thatdo not unduly prejudice ordisadvantage the generatorsfor scheduling deviations. FERC may exempt atransmitting utility from therequirements of this provisionif the solar and windgenerators are likely to havean adverse impact onreliability.

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Enforcement. Electric utilities are subject tothe criminal penalty sectionof the Federal Power Act (16U.S.C. 825o(c)).

No provision. Sec. 209. The exemptionsfrom the criminal penaltysection of the Federal PowerAct (16 U.S.C. 825o(c)) forcertain activities includingwheeling and sales byExempt WholesaleGenerators are repealed. Thecivil penalty section of theFederal Power Act (16 U.S.C.825o-l) is extended to includesections of this Act.

Public Utility Holding Company Act Amendments


Short title. The Public Utility HoldingCompany Act of 1935(PUHCA, 15 U.S.C. 79 etseq.).

Sec. 16041. This subtitle maybe cited as the “Public UtilityHolding Company Act of2003.”

Sec. 221. This subtitle may becited as the “Public UtilityHolding Company Act of2003.”

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Definitions. Various terms are defined at15 U.S.C. 79b.

Sec. 16042. The followingterms are defined: affiliates;associate company;Commission; company;electric utility company;exempt wholesale generator;gas utility company; holdingcompany; holding companysystem; jurisdictional rates;natural gas company; person;public utility; public utilitycompany; State commission;subsidiary company; andvoting security.

Sec. 201. The Federal PowerAct is amended to add federalpower marketing agencies tothe definition of an electricutility. A definition of atransmitting utility is added tothe Federal Power Act. Atransmitting utility includesstate and municipally ownedor operated transmissionfacilities involved in interstatecommerce or transmission ofelectricity at wholesale.

Sec. 222. The following termsare defined: affiliate;associate company;Commission; company;electric utility company; gasutility company; holdingcompany; holding companysystem; jurisdictional rates;natural gas company; person;public utility; public utilitycompany; state commission;subsidiary company, andvoting security.

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Repeal of the PublicUtility HoldingCompany Act of 1935.

In general, the Public UtilityHolding Company Act of1935 regulates the structureof holding companies byprohibiting all holdingcompanies that are more thantwice removed from theiroperating subsidiaries,federally regulates holdingcompanies of investor-ownedutilities, and provides forSecurities and ExchangeCommission (SEC) regulationof mergers and diversificationproposals. Registeredholding companies ofsubsidiaries are required tohave SEC approval prior toissuing securities; all loansand intercompany financialtransactions are regulated bythe SEC. A holding companycan be exempt from PUHCAif its business operations andthose of its subsidiaries occurwithin one state or withincontiguous states (15 U.S.C.79 et seq.).

Sec. 16043. The Public UtilityHolding Company Act of1935 is repealed.

Sec. 223.The Public UtilityHolding Company Act of1935 is repealed.

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Federal access to booksand records.

Registered holding companiesand subsidiary companies arerequired to preserve accounts,cost-accounting procedures,correspondence, memoranda,papers, and books that FERCdeems necessary orappropriate in the publicinterest or for protection ofinvestors and consumers (15U.S.C. 79o).

Sec. 16044. Federal access isprovided to books and recordsof holding companies andtheir affiliates. Affiliatecompanies must makeavailable to the Commission the books and records ofaffiliate transactions. Federalofficials must maintain theconfidentiality of such booksand records.

Sec. 224. Similar provision.

State access to booksand records.

Under the Federal Power Act,state commissions mayexamine the books, accounts,memoranda, contracts, andrecords of a jurisdictionalelectric utility company, anexempt wholesale generatorthat sells to such electricutility, and any electric utilitycompany or holding companythat is an associate companyor affiliate of an exemptwholesale generator (16U.S.C. 824).

Sec. 16045. A jurisdictionalstate commission may make areasonably detailed writtenrequest to a holding companyor any associate company foraccess to specific books andrecords, which must be keptconfidential. This sectiondoes not apply to a holdingcompany that is such solelyby reason of ownership ofone or more qualifyingfacilities. Response to suchrequests is mandatory. Compliance with this sectionis enforceable in U.S. DistrictCourt.


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Exemption authority. No current law. Sec. 16046. FERC is directedto promulgate rules to exemptqualifying facilities, exemptwholesale generators, andforeign utility companiesfrom the requirements ofSection 16044.

Sec. 226. FERC is directed topromulgate rules to exemptqualifying facilities, exemptwholesale generators, andforeign utility companiesfrom the requirements ofSection 224.

Affiliate transactions. The Federal Power Actrequires that jurisdictionalrates are just and reasonableand prohibits cross-subsidization (16 U.S.C. 791aet seq.).

Sec. 16047. FERC retains theauthority to prevent cross-subsidization and to assurethat jurisdictional rates arejust and reasonable. FERCand state commissions retainjurisdiction to determinewhether associate companyactivities may be recovered inrates.


Applicability. No specific provision. Sec. 16048. Except asspecifically noted, thissubtitle does not apply to theU.S. Government, a state orany political subdivision of astate, or a foreigngovernmental authorityoperating outside the UnitedStates.


Effect on otherregulations.

No specific provision. Sec. 16049. FERC or a statecommission is not precludedfrom exercising itsjurisdiction under otherwiseapplicable laws to protectutility customers.


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Enforcement. 15 U.S.C. 79r. The Securitiesand Exchange Commissionhas authority to investigateand enforce provisions of thePublic Utility HoldingCompany Act of 1935.

Sec. 16050. FERC hasauthority to enforce thisprovision under sections 306-317 of the Federal Power Act.


Savings provisions. Not applicable. Sec. 16051. Persons maycontinue to engage in legalactivities in which they havebeen engaged or areauthorized to engage in on theeffective date of the Act. Thesubtitle does not limit theauthority of the FederalEnergy RegulatoryCommission under theFederal Power Act or theNatural Gas Act.


Implementation. Not applicable. Sec. 16052. Not later than 12months after enactment,FERC will promulgateregulations necessary toimplement this subtitle andsubmit to Congressrecommendations fortechnical or conformingamendments to federal lawthat might be necessary tocarry out this subtitle.

Sec. 232. Not later than 18months after enactment,FERC will promulgateregulations necessary toimplement this subtitle andsubmit to Congressrecommendations fortechnical or conformingamendments to federal lawthat might be necessary tocarry out this subtitle.

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Transfer of resources. The Securities and ExchangeCommission maintains booksand records and regulatessecurity transactions (15U.S.C. 79 et seq.).

Sec.16053. The Securities andExchange Commission willtransfer all applicable booksand records to FERC.

Sec. 233. Similar provision. No time frame for transferbooks and records isprovided.

Effective date. Not applicable. Sec. 16054. Twelve monthsafter enactment, this subtitlewill take effect.

Sec. 236. Eighteen monthsafter enactment, this subtitlewill take effect.


Not applicable. Sec. 16055. Necessary fundsto carry out this subtitle areauthorized to be appropriated.


Conformingamendments to theFederal Power Act.

The current jurisdiction ofthe Securities and ExchangeCommission under the PublicUtility Holding Company Actof 1935 is referenced by 16U.S.C. 825q; 16 U.S.C.824(g)(5); 16 U.S.C. 824m.

Sec. 16056. The FederalPower Act is amended toreflect the changes to thePublic Utility HoldingCompany Act of 1935.


Interagency review ofcompetition in thewholesale and retailmarkets for electricenergy.

No current law. No similar provision. Sec. 234. An interagency taskforce is created to perform astudy and analysis of electriccompetition within U.S.wholesale and retail markets. The task force will submit areport not later than 1 yearafter the effective date of thisAct.

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GAO study onimplementation.

No current law. No similar provision. Sec. 235. The GeneralAccounting Office is directedto study the effectiveness ofthe federal government andthe states in: 1) preventinganti-competitive practices;and 2) promoting competitionand efficient energy marketsthat benefit consumers. Thisreport must be submitted toCongress no later than 24months after the effectivedate of this Act.

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Public Utility Regulatory Policies Act (PURPA) Amendments


Real-time pricing andtime-of-use meteringstandards.

States are required to toconsider whether toimplement standards for thepurchase of long-termwholesale power supplies (16U.S.C. 2621(d)).

Sec. 16061. Not later than oneyear after enactment, eachstate regulatory authority isrequired to considerimplementing the followingstandards: (1) if requested byan electric consumer, eachelectric utility must providecustomers with a real-timerate schedule; and (2) ifrequested by an electricconsumer, each electric utilityis required to provide time-of-use metering technology.

Sec. 241. States must considera standard for real-timepricing of electricity for retailcustomers. Real-time pricingon the retail level wouldreflect fluctuations ofwholesale rates. Alsocontains provision on time-of-use metering. In statesallowing retail competition,distribution company mustprovide the same time-of-usemetering and communicationservice to all of its retailcustomers.

Adoption of additionalstandards.

No current law. No similar provision. Sec. 242. States are requiredto consider implementation oftechnical and pricingstandards for distributedgeneration interconnection tothe local distribution system,a standard for each electricutility to develop a plan todevelop a diverse fuel mixand technology mix forgenerating electricity, and astandard to increase theefficiency of fossil fuelgenerators.

CRS-74


Technical assistance. No current law. No similar provision. Sec. 243. The Secretary ofEnergy is authorized toprovide technical assistanceto the states to help developthe standards under Section242.

Cogeneration andsmall powerproduction purchaseand sale requirements.

Section 210 of the PublicUtility Regulatory PoliciesAct of 1978 (PURPA)requires utilities to purchasepower from qualifyingfacilities and small powerproducers at a rate of theutilities’ avoided cost (16U.S.C. 824a-3).

Sec. 16062. Mandatory powerpurchase requirements under§210 of PURPA will notapply to new contracts afterthe date of enactment ifFERC finds that a competitiveelectric market exists and aqualifying facility has accessto independentlyadministered, auction-basedday-ahead and real-timewholesale markets and long-term wholesale markets. FERC may enforce recoveryof “stranded costs” incurredby utilities because ofPURPA-mandatedcogeneration and small powerpurchases. Ownershiplimitations under PURPA arerepealed.

Sec. 244. Mandatory purchaserequirements under PURPA§210 will not apply to newcontracts after the date ofenactment if FERC finds thata competitive electric marketexists. FERC may enforcerecovery of “stranded costs”incurred by utilities becauseof PURPA-mandatedcogeneration and small powerpurchases. Ownershiplimitations under PURPA arerepealed.

Smart metering. No current law. Sec. 16063. States mustconsider whether toimplement time-based rateschedules and time-basedmetering.

No provision.

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Renewable Energy


Net metering. No current law. Sec. 16071. Each state publicutility commission isauthorized to decide if netmetering, will be imple-mented. All utilities arerequired to provide netmetering. Size limits are 500kilowatts (kw) forcommercial systems and 10kw for residential systems.


Renewable energyproduction incentive.

EPACT Sec. 1212 provides a1.5 cent/kwh incentive forpower produced from windand biomass by state andlocal governments and non-profit electrical cooperatives. Funded by appropriations, itwas created to parallel therenewable energy productiontax credit for businesses (TitleXIX).

Sec. 16072. Eligibility isextended through 2023 andexpanded to include electriccooperatives and tribalgovernments. Qualifyingresources are expanded toinclude landfill gas.

Sec. 261. Eligibility isextended to certain publicutilities. Qualifying resourcesare expanded to includelandfill gas, incrementalhydro, and ocean energy. Funding for hydro may notexceed 30% of the total (alsosimilar to Sec. 13201).

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Renewable energy onFederal lands.

No existing requirement. Sec. 16073. The Secretary ofthe Interior, assisted by theSecretary of Agriculture, isrequired to study the potentialfor solar and wind energyresources on federal lands.Also, the National Academyof Sciences (NAS) is directedto study the potential forsolar, wind, and ocean energyon the Outer ContinentalShelf.

Sec. 265. The Secretary of theInterior is directed to create apilot program to developwind and solar energy onfederal lands.

Energy infrastructureprotection andreliability research anddevelopment.

General DOE authority. No provision. Sec. 1261. DOE shallconduct a program forresearch, development, anddeployment of technologiesto protect energyinfrastructure.

The Department of Energy(DOE) currently has aTransmission ReliabilityProgram under the Office ofPower Technologies. TheTransmission ReliabilityProgram conducts research toimprove the reliability of theU.S. electric power system.Security implementation isthe responsibility of theDepartment of HomelandSecurity.

Assessment ofrenewable energyresources.

No existing requirement. Sec. 16074. DOE is requiredto report annually on resourcepotential, including solar,wind, biomass, ocean,geothermal, and hydro.

Sec. 262. DOE is required toreport annually on resourcepotential, including solar,wind, biomass, ocean,geothermal, and hydro.

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Renewable portfoliostandard (RPS).

No existing requirement. No similar provision Sec. 264. A renewable energyproduction target is set for retail suppliers, starting at 1%in 2005 and rising to 10% by2019. Tradable credits arecreated to help compliance. Eligible renewable resourcesinclude solar, wind,geothermal, biomass(including municipal solidwaste), landfill gas, ageneration offset (on-siterenewables generation thatreduces demand), andincremental hydropower. Thebaseline estimate excludeseligible renewables,municipal solid waste, andhydropower. Special creditsapply to incrementalhydropower, generationoffsets, production on NativeAmerican lands, and co-firingwith conventional resources. A non-compliance penalty isprovided.

Several states have enacted anRPS. The Senate bill allowsstates to have a strongerrequirement than the federalstandard. (Sec. 271 of theSenate bill redefines a 3cents/kwh credit in Sec. 264to be 1.5 cents/kwh.)

Change RPS price capfrom 3 cents to 1.5cents.

No similar provision. Sec. 271. The 3 cent/kwhprice cap for tradable creditsin Sec. 264, which establishesan RPS, shall be considered1.5 cents/kwh.

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Market Transparency, Round Trip Trading Prohibition, and Enforcement


Market transparencyrules.

No current law. Sec. 16081. Within 180 daysafter enactment, FERC isrequired to issue rules toestablish an electronic systemthat provides informationabout the availability andprice of wholesale electricenergy and transmissionservices. Commercial orfinancial information that ifdisclosed FERC determines isdetrimental to the operationof an effective market orjeopardizes system security isexempt from disclosure.

Sec. 207. Within 180 daysafter enactment, FERC isrequired to issue rules toestablish an electronic systemthat provides informationabout the availability andprice of wholesale electricenergy and transmissionservices. Commercial orfinancial information thatFERC determines to beprivileged, confidential, orotherwise sensitive is exemptfrom disclosure.

Information disclosure No provision. No provision. Sec. 251. The Federal TradeCommission must issue rulesrequiring electric utilities toprovide electric consumersinformation on the cost andtype of service being offered.

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Prohibition on roundtrip trading.

18 U.S.C. 1341 (mail fraud):This in part applies to use ofthe mail for the purpose ofexecuting, or attempting toexecute, a scheme or artificeto defraud or for obtainingmoney or property by false orfraudulent pretenses,representations, or promises.

18 U.S.C. 1343 (wire fraud):Covers use of wire, radio, ortelevision communication ininterstate or foreigncommerce to transmit or tocause to be transmitted anywritings, signs, signals,pictures, or sounds, for thepurpose of executing ascheme or artifice to defraudor for obtaining money orproperty by means of false orfraudulent pretenses,representations, or promises.

Sec. 16082. It is unlawful forany individual, corporation,or any government entity(municipality, state, powermarketing administration) toengage in round-tripelectricity trading. Round-trip trading is defined toinclude contracts where purchase and sale transactionshave no specific financialgain or loss and are enteredinto with the intent to distortreported revenues, tradingvolumes, or prices.

No provision. This section explicitly appliesexisting fraud statutes toround-trip electricity trading.

Conforming changes. 16 U.S.C. 824. Sec. 16083. Changes reflectamendments to the FederalPower Act.

No provision.

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Enforcement. Criminal penalties may notexceed $5,000 and/or 2 yearsimprisonment. A civilpenalty not exceeding$10,000 per day of violationmay be assessed forviolations of Sections 211,212, 213, or 214 of theFederal Power Act (16 U.S.C.825e and 16 U.S.C. 825o).

Sec. 16084. The FederalPower Act is amended toallow electric utilities to file acomplaint with FERC and toallow complaints to be filedagainst transmitting utilities. Criminal and civil penaltiesunder the Federal Power Actare increased.

Sec. 209. The exemptionsfrom the criminal penaltysection of the Federal PowerAct (16 U.S.C. 825o(c)) forcertain activities includingwheeling and sales byExempt WholesaleGenerators are repealed. Thecivil penalty section of theFederal Power Act (16 U.S.C.825o-l) is extended to includesections of this Act.

Consumer Protections


Refund effective date. Refunds for rates that FERCfinds to be unjust,unreasonable, undulydiscriminatory, or preferentialbegin a minimum of 60 daysafter a complaint is filed (16U.S.C. 824e(b)).

Sec. 16091. Section 206(b) ofthe Federal Power Act isamended to allow theeffective date for refunds tobegin at the time of the filingof a complaint with FERC butnot later than 5 months afterfiling of a complaint. IfFERC does not make itsdecision within the time-frame provided, FERC muststate its reasons for not actingand provide a time-frame forthe decision.

Sec. 204. Section 206(b) ofthe Federal Power Act isamended to allow theeffective date for refunds tobegin at the time of the filingof a complaint with FERC butnot later than 5 months afterfiling of a complaint.

The House bill (Sec.16091(4)) needs a commainserted after “in the fifthsentence” to keep theintended meaning.

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Market-based rates. Section 205 of the FederalPower Act requires just andreasonable rates to be chargedfor transmission or sale ofelectric energy (16 U.S.C.824d).

No provision. Sec. 203. FERC may approvemarket-based rates when theseller and its markets meetcertain criteria. When theCommission determines themarket-based rate is unjust,unreasonable, undulydiscriminatory or preferential,FERC must determine a justand reasonable rate.

This provision could limitFERC’s options to respond torates found to be unjust,unreasonable, undulydiscriminatory or preferential.

Jurisdiction overinterstate sales.

Section 201(f) of the FederalPower Act exemptsgovernment entities fromFERC rate regulation (16U.S.C. 824).

Sec. 16092. Any entity that isnot a public utility (includingan entity referred to under§201(f) of the Federal PowerAct) and that enters into spotmarket transactions will besubject to FERC refundauthority. This section doesnot apply to electriccooperatives or governmententities (power marketingadministrations, state-ownedutilities, municipalities) thatsell no more than 4 millionmegawatt-hours of electricityper year. Upon finding thataction is necessary to protectthe public interest, FERC maymodify or abrogate anycontract entered into afterenactment of this sectionunless the contract expresslyprovides for a differentstandard of review.

No provision. As engrossed in the House,this section is intended toexempt any coop or an entitydescribed in §201(f) of theFederal Power Act that doesnot sell more that 4 millionmegawatt-hours of electricityin one year. However, asdrafted, this section could beinterpreted as exempting all§201(f) entities from FERCrefund authority.

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Consumer privacy. No current law. Sec. 16093. The FederalTrade Commission is requiredto issue rules to protect theprivacy of electric consumersfor the disclosure ofconsumer informationobtained in connection withthe sale or delivery of electricenergy to consumers. If theFederal Trade Commission finds that a state’s regulationsprovide equivalent or greaterprotection than the rulesissued under this section, thenstate regulations will applyrather than federal rules.

Sec. 252. The Federal TradeCommission is directed toissue rules prohibiting anelectric utility from sharingits customers’ individualinformation without priorwritten approval by aconsumer.

Unfair trade practices. No current law. Sec. 16094. The FederalTrade Commission is requiredto issue rules to prohibitslamming and cramming. Ifthe Federal TradeCommission determines that astate’s regulations provideequal or greater protectionthan the federal rule, then astate’s regulations onslamming and cramming willapply.

Sec. 254. The Federal TradeCommission is required toissue rules prohibitingslamming and cramming.

Slamming occurs when anelectric utility switches acustomer’s electric providerwithout the consumer’sknowledge. Cramming occurswhen an electric utility addsadditional services andcharges to a customer’saccount without thepermission of the customer.

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Office of ConsumerAdvocacy.

No current law. No provision. Sec. 253. An Office ofConsumer Advocacy isestablished within theDepartment of Justice. TheOffice may represent theinterest of energy customerson matters concerning rates orservice at FERC hearings, atU.S. court proceedings, andhearings and proceedings ofother federal regulatoryagencies and commissions.

Applicable procedures. Administrative Procedure Act(5 U.S.C. 533).

No provision. Sec. 255. The Federal TradeCommission will adhere tothe notice and commentrulemaking procedures underthe Administrative ProcedureAct (5 U.S.C. 533) for rulesissued under this subtitle.

Federal TradeCommissionenforcement.

Federal Trade CommissionAct (15 U.S.C. 57a).

No provision. Sec. 256. Violations of rulesunder this subtitle will betreated as violations of theFederal Trade CommissionAct (15 U.S.C. 57a).

State authority. No applicable law. No provision. Sec. 257. States are givenauthority to prescribe andenforce laws, rules, orprocedures regarding thepractices of this subtitle.

This gives states the right tocodify and enforce laws,rules, and procedures thatmay be in direct conflict withthe Consumer Protectionsubtitle.

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Application of subtitle. No applicable law. No provision. Sec. 258. This subtitle appliesonly to electric utilities whoseretail sales exceed 500million kilowatt-hours percalendar year.

Definitions. 16 U.S.C. 2602 No provision. Sec. 259. Defines aggregateconsumer information andconsumer information. Electric consumer, electricutility, and state regulatoryauthority have the samemeaning as such terms underPURPA.

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Merger Review Reform and Accountability


Merger review reformand accountability.

Under Section 203(a) of theFederal Power Act, FERCreview of asset transfersapplies to transactions valuedat $50,000 or more (16U.S.C. 824b).

Sec. 16101. Within 180 daysof enactment, the Secretary ofEnergy shall transmit toCongress a study on whetherFERC’s merger reviewauthority is duplicative withother agencies’ authority andrecommendations that wouldeliminate any unnecessaryduplication. FERC isrequired to issue an annualreport to Congress describingall conditions placed onmergers under Section 203(b)of the Federal Power Act. FERC is also required toinclude in its report whethersuch a condition could havebeen imposed under any otherprovision of the FederalPower Act.

Sec. 202. The Federal PowerAct is amended to give FERCreview authority for transferof assets valued in excess of$10 million. FERC must givestate public utilitycommissions and governorsreasonable notice in writing. FERC must establish rules tocomply with this section.

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Study of Economic Dispatch


Study on the benefits ofeconomic dispatch.

No current law. Sec. 16111. The Secretary ofEnergy, in consultation withthe states, will issue an annualreport to Congress and thestates on the current status ofeconomic dispatch. Economicdispatch is defined as “theoperation of generationfacilities to produce energy atthe lowest cost to reliablyserve consumers, recognizingany operational limits ofgeneration transmissionfacilities.”

No provision.

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Motor Fuels

General Provisions


Renewable content ofmotor vehicle fuel.

No provision. Sec. 17101. A new §211(o) isadded to the Clean Air Act. Beginning in 2005, motorgasoline must contain acertain amount of renewablefuel. In 2005, 2.7 billiongallons of renewable fuelmust be sold annually,increasing to 5.0 billiongallons in 2015. After 2015,the percentage of renewablefuel required in the motor fuelpool must be the same as thepercentage required in 2015. This standard will largely bemet by ethanol, but otherrenewable fuels, such asbiodiesel, are eligible. Ethanol from cellulosicbiomass (including fromwood and agriculturalresidue, animal waste, andmunicipal solid waste) isgranted extra credits towardfulfilling the program'srequirements. Further, thebill would establish a credittrading program to provideflexibility to refiners andblenders.

Sec. 820 (a). Similar to theHouse version except that 2.3billion gallons of renewablefuel would be required in2004, increasing to 5.0 billiongallons in 2012. The samepercentage standard wouldapply after 2012.

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Fuels safe harbor. No provision. Sec. 17102. A “safe harbor”is provided for renewablefuels and fuels containingMTBE (i.e., such fuels cannotbe deemed defective in designor manufacture by virtue ofthe fact that they containrenewables or MTBE). Thisprovision applies to claimsfiled after the date ofenactment.

Sec. 820 (e). Similar to theHouse provision, except thatonly renewable fuels wouldbe protected.

The effect of this provisionwould be to protect anyone inthe product chain, frommanufacturers down toretailers, from liability forcleanup of MTBE andrenewable fuels or forpersonal injury or propertydamage based on the natureof the product (a legalapproach that has been usedin California to requirerefiners to shoulder liabilityfor MTBE cleanup). Withliability for manufacturingand design defects ruled out,plaintiffs would be forced todemonstrate negligence in thehandling of such fuels, a moredifficult legal standard tomeet.

MTBE Ban. No provision. No provision. Sec. 833(c). Not later thanfour years after enactment,the use of MTBE in motorvehicle fuel is prohibitedexcept in states thatspecifically authorize it. EPAmay allow MTBE in motorvehicle fuel in quantities up to0.5% in cases theAdministrator determines tobe appropriate.

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Transition fromMTBE.

No provision. Sec. 17103. Section 211(c) ofthe Clean Air Act is amendedto authorize $250 million ineach of FY 2004-2006 forgrants to assist U.S. producersof MTBE in converting to theproduction of iso-octane andalkylates. The Secretary ofEnergy may make grantsavailable for conversion toother fuel additives, unlessEPA determines that suchadditives may reasonably beanticipated to endanger publichealth or the environment.

Sec. 833(c). Provisions fortransition to substituteadditives are similar to theHouse version. For FY2003-FY2005, $250 millionannually is authorized.

Authority for waterquality protection fromfuels.

Sec. 211(c)(1) of the CleanAir Act allows theAdministrator of theEnvironmental ProtectionAgency (EPA) to regulatefuels and fuel additives toprevent air pollution. However, the Act does notgrant EPA the authority toregulate fuels to preventwater contamination.

No similar provision. Sec. 833(c). Sec. 211(c)(1) ofthe Clean Air Act is amendedto allow EPA to control orprohibit the sale of fuel andfuel additives in order toprotect water quality, inaddition to current authoritybased on protection of airquality.

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Elimination of oxygencontent requirementfor reformulatedgasoline.

Section 211(k) of the CleanAir Act requires thatreformulated gasoline (RFG)contain at least 2% oxygen byweight. Further, the sectionsets limits on reformulatedgasoline volatility, toxicemissions, and otherproperties.

Sec. 17104. Subsection (a)amends the Clean Air Act toeliminate the RFG oxygenrequirement.

Subsection (b) amends§211(k)(1) to require thateach refinery or importer ofgasoline maintain the averageannual reductions inemissions of toxic airpollutants achieved by thereformulated gasoline itproduced or distributed in1999 and 2000.

Subsection (b) also requiresEPA to promulgate finalregulations to controlhazardous air pollutants frommotor vehicles and their fuelsby July 1, 2004.

Subsection (c) eliminates theless stringent requirements forvolatility applicable toreformulated gasoline sold inVOC Control Region 2(northern states) by applyingthe more stringent standardsof VOC Control Region 1(southern states).

Sec. 834. Similar to theHouse provision.

(a) This provision takes effect270 days after enactment,except in California, where ittakes effect immediately uponenactment.

(b) This provision is intendedto prevent backsliding, sincethe reductions actuallyachieved in those yearsexceeded the regulatoryrequirements. It establishes acredit trading program foremissions of toxic airpollutants.

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Public health andenvironmental impactsof fuels and fueladditives.

Under the Clean Air ActAmendments of 1990 (42U.S.C. 7545(b)), the EPAAdministrator may requiremanufacturers to conducttests on the health effects offuels and fuel additives.

No similar provision. Sec. 835. The EPAAdministrator must study thehealth and environmentaleffects of fuels and fueladditives. Manufacturers arealso required to conduct testson health and environmentaleffects.

Analyses of motorvehicle fuel changes.

No provision. Sec. 17105. A new §211(p) isadded to the Clean Air Act. Within four years ofenactment, the Administratorof the EnvironmentalProtection Agency (EPA)must publish a draft analysisof the effects of the fuelsprovisions in the Act on airpollutant emissions and airquality. Within five years ofenactment, the Administratoris required to publish a finalversion of the analysis.

Sec. 836. Identical to theHouse provision.

Data collection. No provision. Sec. 17106. Requires DOE tocollect and publish monthlysurvey data on theproduction, blending,importing, demand, and priceof renewable fuels, both on anational and regional basis.

Sec. 813. Similar to theHouse provision.

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Fuel systemrequirementsharmonization study.

No provision. Sec. 17107. The EPAAdministrator and theSecretary of Energy arerequired to conduct a study ofall federal, state, and localmotor fuels requirements. They are required to analyzethe effects of variousstandards on consumer prices,fuel availability, domesticsuppliers, air quality, andvehicle emissions. Further,they are required to study thefeasibility of developingnational or regional fuelstandards. A report must bepublished by December 31,2006.

Sec. 839. Similar to theHouse provision, except thatthe report must be publishedby June 1, 2006.

Reducing theproliferation boutiquefuels.

Under the Clean Air Act, astate not required to usereformulated gasoline (RFG)may opt-in to the program, orestablish its own gasolinestandards (with certainrestrictions) to meet airquality goals within its StateImplementation Plan (SIP).

Sec. 17107A. A newprovision is added to§211(c)(4) of the Clean AirAct. The EPA Administratoris directed to give preferenceto the approval of air qualitySIPs that require the use of“Federal Clean BurningGasoline” (defined as RFGwith a Reid Vapor Pressure of6.8 psi) or “Low RVP”gasoline (with a Reid VaporPressure of 7.8 psi).


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Additional opt-in areasunder reformulatedgasoline program.

Under the Clean Air Act,Amendments of 1990 (42U.S.C. 7545(k)), areas insevere or extremenonattainment of ozonestandards are required to usereformulated gasoline (RFG). Other nonattainment areaswith less severe problemsmay opt-in to the RFGprogram.

No similar provision. Sec. 837. Areas incompliance with ozonestandards (that are within theozone transport region) mayalso opt-in to the federal RFGprogram, unless there isinsufficient supply of RFG.

The ozone transport regioncovers areas from theWashington, D.C.Metropolitan Statistical Areato the state of Maine.

Federal enforcement ofstate fuelsrequirements.

Under the Clean Air ActAmendments of 1990 (42U.S.C. 7545(k)), states withless severe ozonenonattainment areas (thatchoose not to opt-in to theRFG program) may set theirown fuel standards as part ofa State Implementation Plan(SIP) for ozone.

No similar provision. Sec. 838. If a state requests,EPA may enforce fuelrequirements set in a state’sSIP.

Currently, states areresponsible for enforcing theirown state-initiated fuelstandards, while EPAenforces federal fuelstandards.

Commercialbyproducts frommunicipal solid wasteloan guaranteeprogram.

No provision. Sec. 17108. The Secretary ofEnergy is required toestablish a loan guaranteeprogram for the constructionof facilities to produce fuelethanol and other commercialbyproducts from municipalsolid waste. The sectionauthorizes such sums as maybe necessary for the program.

Sec. 820B. Identicalprovision.

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Review of federalprocurement initiativesrelating to use ofrecycled products andfleet andtransportationefficiency.

Executive Order 13149directed federal agencies toincrease the EPA-rated fueleconomy of their passengercars and to fuel alternativefuel vehicles (AFVs) withalternative fuels a majority ofthe time.

Executive Order 13101directed federal agencies toincrease their use of recycledproducts.

No similar provision. Sec. 840. The Administratorof the General ServicesAdministration must submit areport to Congress on effortsby federal agencies topurchase recycled products,purchase AFVs andalternative fuels, and improvefederal vehicle fleetefficiency.

Most federal AFVs are dual-fuel vehicles (capable ofbeing fueled by either analternative or conventionalfuel), and most of these arefueled with gasoline asopposed to alternative fuels.

MTBE Cleanup


Funding for MTBEcontamination.

The Solid Waste Disposal Act(42 U.S.C. 6991) provides forthe regulation of undergroundstorage tanks, includinggasoline storage tanks. Among other provisions, theact allows regulations for thedetection, prevention, andcorrection of releases ofregulated substances.

Sec. 17201. Appropriationsare authorized to EPA fromthe Leaking UndergroundStorage Tank (LUST) TrustFund for actions deemednecessary to protect humanhealth, welfare, and theenvironment fromunderground storage tankreleases of fuel containingfuel oxygenates (includingMTBE). A total of $850million is authorized.

Sec. 832. Funds areauthorized from the LUSTTrust Fund for the preventionand mitigation ofcontamination by ether fueladditives, including MTBE. The following funds areauthorized for FY2003-FY2008: $200 million totalfor for general MTBEremediation; $200 milliontotal for release prevention;$2 million total for researchon bedrock remediation; and$350,000 total for research onsoil remediation.

MTBE, a common additive ingasoline, has been found tocontaminate undergrounddrinking water sources inseveral states.

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Automobile Efficiency


Increased fuel economystandards.

The Energy Policy andConservation Act (P.L. 94-163), enacted in 1975,established procedureswhereby the NationalHighway Traffic SafetyAdministration (NHTSA)follows a rulemaking processto establish model yearCorporate Average FuelEconomy (CAFE) standardsfor passenger automobilesand light-duty trucks. Fueleconomy of passengerautomobiles is currently 27.5mpg; light-duty truck CAFEis 20.7 mpg.

No comparable provision. Sec. 801. The Secretary ofTransportation must issue notlater than 15 months afterenactment “new regulationssetting forth increased fueleconomy standards”reflecting “maximum feasiblefuel economy levels”consistent with factors set outin the original CAFElegislation (P.L. 94-163). (However, Sec. 811 freezes“pickup truck” CAFE at 20.7mpg.) An environmentalassessment is required of theeffects of the new standards.

Though the House languagedoes not specifically call foran increase in CAFEstandards or for NHTSA toinitiate a rulemaking, there isan implied assumption thatNHTSA will undertake arulemaking as provided incurrent law. By contrast, theSenate bill requires that theagency do so under aschedule specified in thelegislation.

Authorization ofappropriations forimplementation andenforcement of fueleconomy standards.

No provision. Sec. 18001. An authorizationof $5 million is provided forthe implementation andenforcement of CAFEstandards for FY2004-FY2006.

Sec. 801. $2 million isauthorized to carry out thissection.

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Study of feasibility andeffects of reducing useof fuel for automobiles.

No provision. Sec. 18002. The NationalHighway Traffic SafetyAdministration (NHTSA)must initiate a study of thefeasibility and effects ofreducing automobile fuel use“by a significant percentage”by model year 2012. Thestudy is to examinealternatives to the presentsystem of CAFE standards,and examine the potential offuel cell technology inachieving that reduction.


Expedited proceduresfor congressionalincrease in fueleconomy standards.

No current law. No comparable provision. Sec. 802. In the event that theSecretary of Transportationdoes not comply with Sec.801 within 15 months ofenactment, Congress mayestablish CAFE standardsunder expedited procedures.

Sec. 802 does not specifywhat CAFE standardCongress may enact underexpedited procedures.

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Considerations to betaken into account insetting maximumfeasible average fueleconomy standards.

Current law requiresSecretary of Transportation toconsider “technologicalfeasibility, economicpracticability, the effect ofother motor vehicle standardsof the Government on fueleconomy, and the need of theUnited States to conserveenergy.” [49 Sec.32902(2)(f)]

No comparable provision. Sec. 803. In addition toconsiderations in current law,the Secretary ofTransportation must consider:(1) CAFE effects on reducingU.S. dependence on importedoil; (2) motor vehicle andpassenger safety; (3) airquality; (4) the relativecompetitiveness ofmanufacturers; (5) levels ofemployment in the UnitedStates; (6) the cost and leadtime for new technologies; (7)potential benefits of advancedtechnology vehicles; (8)impact of manufacturers’near-term compliance costson their ability to developadvanced technologies (9) theJanuary 2002 CAFE report ofthe National ResearchCouncil.

The Senate legislationconsiderably lengthens thenumber of conditions to beanalyzed and weighed by theNational Highway TrafficSafety Administration insetting standards. Theimplications, if any, for therule-making process areunclear.

Extension of maximumfuel economy increasefor alternative vehicles.

Manufacturers earn a “CAFEcredit” for producing dual-fueled vehicles. Themaximum increase in amanufacturer’s CAFE owingto inclusion of dual-fueledvehicles in its fleet is limitedto 1.2 mpg for model years1993-2004, and 0.9 mpg formodel years 2005-2008.

No comparable provision. Sec. 804. Maximum increasein a manufacturer’s CAFEowing to inclusion of dual-fueled vehicles in its fleet islimited to 1.2 mpg for modelyears 1993-2008, and 0.9mpg for model years 2009-2013.

The fuel economy study bythe National Academy ofSciences (NAS)recommendedelimination of the credit,contending that these vehiclesare rarely operated onanything but conventionalgasoline, while the creditpermits the manufacturer tosell less-efficient vehicles.

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Average fuel economystandard for pickuptrucks.

No specific provision. No comparable provision. Sec. 811. The CAFE standardfor “pickup trucks” is frozenat 20.7 mpg, the currentstandard for light-duty trucks.

The Senate bill would appearto require some definition of athird category of vehicle – “pickup trucks” – in additionto passenger cars and light-duty trucks. Depending uponhow pickups are defined, theSenate provision might notexclude SUVs and vans fromfuture rulemakings to set ahigher CAFE standard.

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Science


Purposes, Goals &Definitions.

Energy research anddevelopmentprograms.

R&D programs are currentlyfunded, but there are noexisting goals for reducingenergy intensity, curbingenergy use, and cuttingcarbon dioxide emissions.

Secs. 20001- 20003. Theprograms authorized in thisdivision of the bill areintended to support basicenergy research and providemechanisms to develop,demonstrate, and promote thecommercial application ofnew energy technologies. Specific goals are providedfor each research area, suchas the development by 2010of mid-sized passengerautomobiles with a fueleconomy of 80 miles pergallon.

Sec. 1201-1204. A DOEenergy R&D and deploymentprogram is charged with thegoals of reducing energyintensity by 1.9% annuallythrough 2020, reducing totalenergy use by 8 quadrillionBtu by 2020, and reducingcarbon dioxide by 166 millionmetric tons by 2020.

Research and Development

Energy Efficiency


Energy efficiency. Funding authorizations haveexpired.

Sec. 21101. Funding for theDOE energy efficiencyprograms is authorized forFY2004 through FY2007.

Sec. 1211. Numerous goalsare set for the DOE energyefficiency programs. Also,funding for the programs isauthorized for FY2003through FY2006.

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Next GenerationLighting Initiative.

No existing requirement. Sec. 21111. A DOE programis created that aims todevelop, by 2012, advancedwhite light-emitting diodesfor high efficiency lighting.

Sec. 1213. A DOE program iscreated that aims to develop,by 2011, advanced whitelight-emitting diodes for highenergy efficiency in lighting.

Energy Efficiency ofElectronic DataCenters.

No specific provision. No provision. Sec. 1215. DOE must createan RD&D program toimprove energy efficiencyand load management of datacenters, server farms, andother high power densityfacilities.

National BuildingPerformance Initiative.

No existing provision. Sec. 21121. An interagencygroup is established toaddress energy efficiencyR&D for buildings. TheNational Institute ofStandards and Technology isdirected to provideadministrative support.

No provision.

Electric motor controltechnology.

No existing requirement. Sec. 21122. DOE is directedto develop advanced controldevices to improve theefficiency of motors used inheating, ventilation, airconditioning, and relatedequipment.

No provision.

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Establishment ofsecondary electricvehicle battery useprogram.

No provision. Sec. 21131 and Sec. 21132. Aprogram is established forresearch and development onapplications for used electricvehicle batteries in utility andcommercial power storageand power quality.


Energy EfficiencyScience Initiative.

Though there is no statutoryauthority, congressionalinitiatives have repeatedlyfunded this DOE program forseveral years. It isadministered jointly by theOffice of Energy Efficiencyand Renewable Energy andthe Office of Science.

Sec. 21141. A program forcompetitive grants is created. An annual report is to be filedwith the DOE budget request.Funding authorization isincluded as part of a blanketauthorization in Section21101.

Sec. 1212. Statutory authorityis provided for the programand funding up to $50 millionannually is authorizedindefinitely. Also, DOE isdirected to prepare an annualreport on the program.

Advanced EnergyTechnology TransferCenters.

No existing requirement. Sec. 21151. DOE is directedto create a program thatmakes grants for demon-stration and commercialapplication, requiring a 50%non-federal funding match.

No provision.

Distributed Energy and Electric Energy Systems


Distributed energy andelectric energy systems.

No specific provision. Sec. 21201. Funding for theDOE distributed energy,electric energy, and micro-cogeneration programs isauthorized for FY2004through FY2007.

No provision.

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Strategy. No existing requirement. Sec. 21211. DOE is directedto prepare a study (strategy),and identify barriers, forhybrid distributed powersystems that use renewables,storage, and interconnectionequipment.

No provision.

High power densityindustry program.

No specific provision. Sec. 21212. DOE must createa research, development, anddemonstration (RD&D)program to improve energyefficiency and loadmanagement of data centers,server farms, and other highpower density facilities.

No provision.

Micro-cogenerationenergy technology.

No specific provision. Sec. 21213. DOE is directedto make competitive grants toconsortia to develop micro-cogeneration technology,including that which can beused for residential heating.

No provision.

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Transmissioninfrastructure systemsresearch, development,demonstration, andcommercialapplication.

No current law. Sec. 21221. The Secretary ofEnergy is directed toimplement a program topromote reliability andefficiency of the electrictransmission system. Withinone year of enactment, theSecretary of Energy is tosubmit to Congress a reportdetailing the program’s fiveyear plan. Within two yearsof enactment, the Secretary ofEnergy is to submit toCongress a report detailingthe progress of the program.

No provision.

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Renewable Energy


Renewable energy. General DOE authority(various statutes).

Sec. 21301. Funding for theDOE renewable energyprograms is authorized forFY2004 through FY2007.

Sec. 1221. The Secretary ofthe Energy is required toconduct research,development, demonstration,and deployment projects onrenewable energy, includingwind, solar, biomass, andgeothermal energy. Specialprojects include improvingelectricity delivery to ruraland remote areas. A total of$2.51 billion is authorized forFY2003 through FY2006.

Bioenergy programs. No existing provision. Sec. 21311. DOE is directedto conduct programs on biofuels and biopower.

Sec. 1222. The Secretary ofEnergy is required to conductresearch, development,demonstration, anddeployment projects onbioenergy, includingbiopower (electricity andprocess heat generation) andbiofuels (liquid fuels, gaseousfuels, and industrialchemicals). For FY2003through FY2006, a total of$295 million is authorized forbiopower research, and $281million for biofuels research.

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Miscellaneous projects. General DOE authority forenergy programs. There is noexisting requirement forNational Academy ofSciences (NAS) study.

Sec. 21321. DOE is directedto conduct programs on oceanand wave energy,combinations of renewableenergy, and wind energycombined with coalgasification. NAS is directedto study the potential forvarious forms of oceanenergy.

No provision.

Renewable energy inpublic buildings.

General DOE authority. There is no specificrequirement for projects inpublic buildings.

Sec. 21322. DOE mustconduct an innovativeprogram to put renewables instate and local buildings,funding up to 40% of aproject’s incremental costs.

No provision.

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Nuclear Energy


Nuclear energyresearch anddevelopmentauthorizations.

DOE shall carry out andsupport research anddevelopment activities relatedto nuclear energy (AtomicEnergy Act Section 31).

Sec. 21401. Funding isauthorized for FY2004-FY2007 for DOE nuclearenergy research,development, demonstration,and commercial applicationactivities.

Sec. 1241. DOE shallconduct an R&D program toenhance nuclear energy. Theprogram shall supportimprovements in existingcommercial reactors, examineadvanced reactor designs,attract new nuclear scienceand engineering students, andmaintain isotope productioncapability. Funding isauthorized for FY2003through FY2006.

General authority for all DOEnuclear energy R&D activitiesis provided by the AtomicEnergy Act of 1954 (AEA)and the Department of EnergyOrganization Act (P.L. 95-91).

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Nuclear energyresearch programs.

No specific provision. Sec. 21411. DOE shallconduct a Nuclear EnergyResearch Initiative, a NuclearEnergy Plant OptimizationProgram, a Nuclear Power2010 Program, a GenerationIV Nuclear Energy SystemsInitiative, and NuclearInfrastructure Support.

Sec. 514. DOE shall conducta cost-shared program withindustry to “allow for theconstruction and startup ofnew nuclear plants in theUnited States by 2010.”

Sec. 1243. From fundingauthorized for EnhancedNuclear Energy Research andDevelopment (Section 1241),DOE shall provide grantsunder the Nuclear EnergyResearch Initiative (NERI).

Sec. 1244. From amountsauthorized under Section1241, DOE shall support aNuclear Energy PlantOptimization (NEPO) grantsprogram for projects toimprove nuclear power plantreliability, availability, andproductivity. The programshall require industry cost-sharing of at least 50%. (Continued in next row)

These programs have beenfunded in recent years withouta specific authorization.

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Nuclear energyresearch programs(continued from rowabove).

No specific provision. Sec. 21411. Sec. 1245 (continued fromrow above). From amountsauthorized under Section1241, DOE shall develop a“technology roadmap” fordesigning and developingnew U.S. commercial nuclearreactors. The roadmap shallinclude a study of advanced,“Generation IV” reactordesigns to support a decisionon selecting the mostpromising of those designsfor commercial deployment.

These programs have beenfunded in recent years withouta specific authorization.

Advanced fuelrecycling program.

DOE shall conduct a researchprogram on alternative meansand technologies for disposalof high-level radioactivewaste (42 U.S.C. 10202).

Sec. 21421. DOE’s Office ofNuclear Energy, Science, andTechnology shall conduct aresearch and developmentprogram on advancedtechnologies for thereprocessing of spent nuclearfuel. The technologies shouldbe resistant to nuclearweapons proliferation andsupport alternative spent fueldisposal strategies andGeneration IV advancedreactor concepts.

Sec. 515. A DOE Office ofSpent Nuclear Fuel Researchis established to research,develop, and demonstratetechnologies for treatment,recycling, and disposal ofspent nuclear fuel and high-level radioactive waste. Thetechnologies should be basedon reactors and acceleratorsand minimize nuclearweapons proliferationconcerns.

Spent fuel recycling orreprocessing involves theextraction of plutonium anduranium from spent nuclearfuel for use in new fuel. Supporters contend that itcould extend domestic energysupplies and reduce thehazard posed by nuclearwaste, while opponents areconcerned that the extractedplutonium could be used forweapons.

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University nuclearscience andengineering support.

DOE may provide grants andcontributions to the cost ofconstruction and operation ofuniversity reactors (AEASection 31).

Sec. 21431. DOE shallestablish a program toenhance human resources andinfrastructure in nuclearengineering and science. Theprogram shall providegraduate and undergraduatefellowships; assist in facultyrecruitment and retention;support nuclear engineeringand science research;encourage collaborativeresearch; help maintain andoperate university reactors;and conduct related activities.

Sec. 1242. DOE shallprovide support to universitynuclear science andengineering programs,including programs to helpstudents and faculty, helpingto maintain universityreactors and infrastructure,and interaction betweenuniversity nuclear programsand DOE nationallaboratories. Funding isauthorized for FY2003through FY2006.

The provisions would addnew statutory requirementsfor the existing DOEUniversity Reactor FuelAssistance and SupportProgram.

Study of boreholedisposal of spentnuclear fuel.

DOE is developing a minedunderground repository fordisposal of spent nuclear fueland high level waste (NuclearWaste Policy Act of 1982, 42U.S.C. 10101 et seq.).

Sec. 21441. DOE shall studythe feasibility of deepborehole disposal of spentnuclear fuel and high levelwaste.

No provision. Boreholes could potentiallygo much deeper than thecurrently planned repositoryat Yucca Mountain, Nevada.

Study of shippingroutes for researchreactor spent fuel.

No provision. No provision. Sec. 1707. The NationalAcademy of Sciences shallstudy federal procedures forselecting transportation routesfor spent nuclear fuel fromresearch reactors.

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Fossil Energy


Fossil energy. No specific provision. Sec. 21501. Funding levelsare authorized for fossilenergy research anddevelopment activities forFY2004-FY2007. Apercentage of the revenuefrom federal oil and gas leasesales shall be deposited in theUltra-deepwater andUnconventional Natural Gasand Other PetroleumResearch Fund, from whichfunding is authorized forrelated research programs.

See Sec. 1231 forauthorizations.

Although there is currently nospecific authorization,funding for fossil energyresearch and developmentprograms is appropriatedthrough the Interior andRelated Agenciesappropriations bill.

Fossil energy researchprograms.

No specific provision. Sec. 21511. DOE shallconduct coal R&D thatincludes carbon sequestration,advanced separationtechnologies, and fuels. Oiland gas R&D shall includegas hydrates, ultra clean fuels,heavy oil and oil shale, andenvironmental research.Research into fuel cells andtechnology transfer are alsospecified.

Sec. 1231. DOE shall conducta balanced fossil energyresearch, development,demonstration, andtechnology deploymentprogram. The program focusincludes reducing emissionsfrom fossil fuels, developingoffshore resources, andenhancing domestic supplyand technology forindependent producers.Funding is authorized forFY2003-FY2006.

R&D for gas hydrates, ultra-clean fuels and heavy oil arefunded through the DOE’sFossil Energy Program.

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Safe and efficientmining technologies.

Coal R&D in the DOE budgetis funded under the FossilEnergy Program.

Sec. 21512. R&D prioritiesare to be carried outaccording to the MiningIndustry of the Futureprogram and NASrecommendations.

Sec. 1233. A federal-privatesector research partnership isset up to establish researchpriorities for advanced coalmining technologies.

R&D for new naturalgas transportationtechnologies.

No specific provision. No comparable provision. Sec. 1235. DOE shall conducta comprehensive R&Dprogram on natural gastransportation and distributiontechnologies and distributedenergy systems.

Office of Arctic Energyauthorization.

Office established by Sec.3197 of P.L. 106-398.

No comparable provision. Sec. 1236. Funding isauthorized for the Office ofArctic Energy.

Outer ContinentalShelf (OCS) energyinfrastructure security.

Deepwater OCS activity isconducted under the OuterContinental Shelf of 1953 (43U.S.C. 1331).

No comparable provision. Sec. 1811. The Secretary ofthe Interior shall establish anOCS Energy InfrastructureSecurity Program to providefunds to states to protectagainst threats to OCSfacilities and relatedinfrastructure.

Program authority. No specific provision. Sec. 21521. R&D isauthorized for technologydevelopment and applicationfor ultra-deepwater andunconventional natural gasand other petroleum.

Sec. 1234. DOE shallestablish a program toconduct long-term R&D intoultra-deepwater developmentand environmental mitigationtechnologies.

R&D programs for oil andgas are funded under theFossil Energy Program in theInterior and Related Agenciesappropriations bill.

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Ultra-deepwaterprogram.

No provision. Sec. 21522. The Secretary ofEnergy shall establish aProgram Consortium to planfor R&D activities in ultra-deepwater natural gas andother petroleum resources.

Sec. 1234. DOE shallestablish a program toconduct long-term R&D intoultra-deepwater developmentand environmental mitigationtechnologies.

Unconventionalnatural gas and otherpetroleum resourcesprogram.

No provision. Sec. 21523. The Secretary ofEnergy shall seek to increasethe supply of “focus area”resources such as coalbedmethane, tight sands naturalgas, and gas shales. Awardsshall also focus on deepdrilling, enhanced oilrecovery, and environmentalmitigation.

Sec. 607. The Secretary of theInterior and others shall study the effects of coalbedmethane production on waterresources.

Additionalrequirements forawards.

No provision. Sec. 21524. Fundingapplicants must describe theintended use of thetechnology that will bedemonstrated.


Advisory committees. None. Sec. 21525. An Ultra-deepwater AdvisoryCommittee and anUnconventional ResourcesTechnology AdvisoryCommittee shall beestablished.


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Limits onparticipation.

None. Sec. 21526. Criteria forforeign-owned participants inthe program are established. It is also the sense ofCongress that the program’sprimary purpose is to developU.S. oil and gas supply.


Research fund. None. Sec. 21527. The Ultra-deepwater andUnconventional Natural Gasand Other PetroleumResearch Fund shall beestablished.


Transfer of advancedoil and gas explorationand productiontechnologies.

None. Sec. 21528. The Secretary ofEnergy shall reviewtechnology programs andselect an organization tomanage the transfer ofsuitable technologies.


Sunset. None. Sec. 21529. The authority forthis part terminates in 2010.


Definitions. None Sec. 21530. A number ofterms used in this part aredefined.


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Science


Authorization ofappropriations for theOffice of Science.

General authority is providedby DOE Organization Act(P.L. 95-91).

Sec. 21601. Appropriationsare authorized for the Officeof Science for fiscal years2004 through 2007, withincreases of 10-15% per year.Within these totals,appropriations are authorizedfor certain specific programsand activities of the Office.

Sec. 1251. Appropriationsare authorized for the Officeof Science for fiscal year2003 (an increase ofapproximately 20% above the2002 appropriation) andsubsequent fiscal yearsthrough 2006 (annualincreases of approximately10%). Broad programdirection is providedregarding scientific scope, therole of facilities, theimportance of certain researchareas, and connections with the Department’s appliedprograms.

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ITER (internationalfusion researchproject).

General DOE authority. Sec. 21611. The United Statesmay participate in theinternational fusion energyexperiment known as ITER.Criteria are specified for anyagreement on U.S.participation. DOE shalldevelop a plan for ITERparticipation and have itreviewed by the NationalAcademy of Sciences. Fundsmay not be expended forconstruction until the planand other reports are providedto Congress. See Sec. 21601for authorization ofappropriations.

Sec. 1254. The Secretary shallsubmit an overall plan for thenuclear fusion program,including certain specifiedobjectives. In addition, theSecretary shall submit a planfor construction of a burningplasma experiment in theUnited States. If the Secretarymakes certain findings, hemay also submit a plan forU.S. participation in aninternational burning plasmaexperiment. Appropriationsare authorized for fiscal year2003 (an increase ofapproximately 35% above the2002 appropriation) and forsubsequent fiscal yearsthrough 2006.

The United States withdrewfrom the design phase ofITER in 1998 atcongressional direction,largely because of concernsabout cost and scope. Theproject has since beenrestructured, and in January2003, the Administrationannounced its intention toreenter the project. Otherinternational partners includethe European Union, Japan,Russia, and China.

Plan for alternativefusion experiment.

General DOE authority. Sec. 21612. If DOEdetermines that constructionand operation of ITER areunlikely or infeasible, it shallsubmit a plan for anotherproposed fusion energyexperiment, known as FIRE.See Sec. 21601 forauthorization ofappropriations.

(See Sec. 1254 above.) The scientific goals of FIREare related to those of ITERbut are less comprehensiveand on a smaller scale. FIREwould be based in the UnitedStates.

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Plan for Fusion EnergySciences program.

General DOE authority. Sec. 21613. Competitivenessin fusion energy, including ademonstration of electricpower or hydrogenproduction, shall be U.S.policy. DOE shall submit aplan to carry out that policy.The plan shall be subject tocertain requirements. See Sec.21601 for authorization ofappropriations for the FusionEnergy Sciences program.

(See Sec. 1254 above.) Fusion Energy Sciences is anexisting Office of Scienceprogram.

Spallation NeutronSource.

No specific authorization. Secs. 21621-21623. DOEshall report on the SpallationNeutron Source (SNS),including its cost andschedule, in its annual budgetsubmissions. DOE obligationsfor the SNS, including prioryear costs, may not exceed$1.193 billion (constructiononly) and $1.412 billion(total). See Sec. 21601 forauthorization ofappropriations.

No similar provision. Construction of the SNS isscheduled to be completed in2006. Although there is nospecific authorization, thisproject has been fundedthrough Energy and WaterDevelopment AppropriationsActs since FY1999.

Facility andinfrastructure supportfor nonmilitary energylaboratories.

No provision. Sec. 21631. DOE shalldevelop, implement, andreport on a strategy for thenonmilitary energylaboratories and facilities ofthe Office of Science.


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Research regardingprecious metalcatalysis.

General DOE authority. Sec. 21632. Appropriationsare authorized for research onthe use of precious metals(except platinum, palladium,and rhodium) in catalysis.

Sec. 1216. The Secretary ofEnergy may conduct researchin the use of precious metalsother than platinum,palladium and rhodium foruse in automotive catalyticconverters.

Platinum, palladium andrhodium are the three majorprecious metals currentlyused in the in automotivecatalytic converters.

Nanotechnologyresearch anddevelopment.

General DOE authority. Sec. 21633. DOE shallimplement a NanotechnologyR&D Program with specifiedgoals and activities. Withintwo years, DOE shall reportto Congress on its efforts toidentify societal and ethicalconcerns related tonanotechnology.

Sec. 1252. A nanoscience andnanoengineering R&Dprogram, including researchcenters and majorinstrumentation, is establishedwithin the Office of Science.Appropriations for fiscalyears 2003 through 2006 areauthorized as part of theoverall authorization given inSec. 1251.

Nanotechnology R&D iscurrently conducted in theBasic Energy Sciencesprogram of the Office ofScience.

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Advanced scientificcomputing for energymissions.

Existing DOE advancedcomputing programs areconducted under the HighPerformance Computing Actof 1991 (15 U.S.C. 5523) andgeneral DOE authority.

Sec. 21634. DOE shallsupport advances in thenation’s computing capabilitythrough research on grandchallenge computationalscience problems. TheNetworking and InformationTechnology R&D Programshall conduct research onspecified topics and shall becoordinated with relatedactivities in DOE andelsewhere. DOE shall reportto Congress beforeundertaking any newinitiative to develop advancedarchitectures for high-speedcomputing.

Sec. 1253. The Office ofScience’s advanced scientificcomputing program isexpanded to include, as wellas research, the deploymentof high-performancecomputing and collaborationtools for research in DOEmission areas. Appropriationsare authorized for fiscal year2003 (an increase ofapproximately 75% above the2002 appropriation) and forsubsequent fiscal yearsthrough 2006.

The Advanced ScientificComputing Research programof the Office of Sciencecurrently conducts computingresearch.

Nitrogen fixation. General DOE authority. Sec. 21635. DOE shallsupport a program ofresearch, development,demonstration, andcommercial application onbiological nitrogen fixation.


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Department of EnergyScience andTechnologyScholarship Program.

No provision. Sec. 21636. DOE shallestablish a scholarshipprogram designed to recruitand prepare students forcareers in DOE. Scholarshiprecipients are obligated towork for DOE for 24 monthsper year of scholarshipreceived.

Sec. 1501. The EnergyInformation Administrationshall monitor trends in theenergy industry technicalworkforce, include statisticson these trends in its annualreports, and report toCongress when a significantpersonnel shortfall occurs oris forecast. A grant programis created for trainingtechnical personnel inshortfall areas.

Sec. 1502. A program ofpostdoctoral fellowships inenergy R&D is established.The Secretary may arrangefor this program tobe administered by theNational Academy ofSciences. A program of seniorresearch fellowships inenergy R&D is alsoestablished.

Training guidelines forelectric energyindustry personnel.

None. No similar provision. Sec. 1503. DOE must workwith utilities and unions tocreate model employeetraining guidelines to increaseelectric reliability.

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National Power PlantOperations Technologyand Education Center.

None. No similar provision. Sec. 1506. DOE mustestablish a center to conducttraining and certification ofoperators at electric powergenerating plants.

Genomes to life. General DOE authority. Sec. 21641. DOE shallestablish a research,development, anddemonstration program ingenetics, protein science, andcomputational biology ofmicrobes and plants, withspecified goals. Within oneyear, DOE shall submit aresearch plan for this programto the Congress and contractwith NAS to review the planwithin an additional sixmonths.

No similar provision. Genomes to Life is anexisting activity in theBiological and EnvironmentalResearch program of theOffice of Science.

Energy and Environment


Authorization ofappropriations forenvironmentalprograms.

No specific provision. Sec. 21701. Funding isauthorized for DOE tosupport United States -Mexico energy cooperationand for a program to reducematerial wastes.

No provision.

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United States-Mexicoenergy technologycooperation.

No existing provision. Sec. 21702. DOE is directedto create a program in itsCarlsbad EnvironmentalManagement Field Officefocused on energy-efficientand environmentally soundeconomic development alongthe U.S.-Mexico border.

Sec. 1414. A collaborativeRD&D program is establishedin the DOE Office ofEnvironmental Managementto promote energy-efficient,environmentally soundeconomic development alongthe United States-Mexicoborder.

Waste reduction anduse of alternatives.

No existing requirement. Sec. 21703. DOE isauthorized to make a singlegrant to a university to studythe feasibility of burningpost-consumer carpet incement kilns.

No provision.

Coal gasification. No provision. Sec. 21704. Loan guaranteesare authorized for a powerplant using integratedcombined cycle technology,producing in a deregulatedmarket, and receiving nosubsidy.

See Sec. 1232. (Senate indexis at the end of this report.)

Petroleum cokegasification.

No specific provision Sec. 21705. Loan guaranteesare authorized for at least onepetroleum gasificationpolygeneration project.


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Other biopower andbioenergy.

No specific provision. Sec. 21706. DOE mustconduct a program to helpplan projects to convertcertain biomass sources (e.g.rice straw, poultry fat, barleygrain) into biopower andbiofuels.

No provision.

Coal technology loan. No specific loan provision Sec. 21707. A $125 millionloan is authorized for DOEproject #DE-FC22-91PC99544.

Sec. 1237. Funding isauthorized for a $125 millionloan to an experimental cleancoal plant.

This refers to a clean coaldemonstration project inHealy, Alaska.

Fuel cell test center. No provision. Sec. 21708. The Secretary ofEnergy is required to studythe establishment of a testcenter for advanced fuel cellsat an institution of higherlearning. A total of $500,000is authorized for this study.


Fuel cell transit busdemonstration.

No provision. Sec. 21709. A program isestablished to demonstrate upto 12 fuel cell transit buses inthree geographicallydispersed locations. A totalof $40 million is authorizedfor FY2004 through FY2007.

No similar provision. Various programs under theTransportation Equity Act forthe 21st Century (TEA-21, PL.105-178) provide funding fortransit projects. Funds fromthese programs could be usedfor fuel cell bus projects.

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Safe Drinking Watergrant and preservationof oil and gas resourcedata.

No provision. No provision. Secs. 611-612. Funding isauthorized for a grant toAlabama under the SafeDrinking Water Act, and theU.S. Geological Survey maypreserve and provide publicaccess to oil and gas resourcedata.

Management


Definitions. No provision. No similar provision. Sec. 1401. The term “single-purpose research facility”includes 15 named DOE-owned facilities and anysimilar DOE organizationdesignated as such by theSecretary.

Availability of funds. No existing provision. Sec. 21801. DOE funds forthis title are made availableuntil expended.

Sec. 1402. Appropriationsauthorized under titles XII(energy R&D), XIII (climatechange R&D), and XV(traineeships and fellowships)shall remain available untilexpended.

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Cost sharing. No specific provision; variousenergy statutes include cost-sharing requirements.

Sec. 21802. Except asotherwise provided in thistitle, DOE shall generallyrequire at least a 20% matchfor R&D projects and a 50%match for demonstrationprojects. The matchingrequirement can be reducedfor certain reasons.

Sec. 1403. Cost-sharing isrequired for DOE projects inenergy efficiency R&D,renewable energy R&D,fossil energy R&D, andnuclear energy R&D. Thenon-federal share must be atleast 20% for research anddevelopment projects and atleast 50% for demonstrationand deployment projects. TheSecretary may waive orreduce these requirementsunder certain conditions.

Merit review ofproposals.

No specific provision. Sec. 21803. An impartialreview of scientific andtechnical merit is requiredbefore DOE may award fundsauthorized under this title.

Sec. 1404. An independentreview of scientific andtechnical merit shall beconducted before a proposalcan be funded fromappropriations authorizedunder title XII (energy R&D),subtitle A of title XIII (DOEclimate change R&D), or titleXV (traineeships andfellowships).

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External technicalreview of departmentalprograms.

General authority for DOEadvisory committees isprovided by 42 U.S.C. 7234.

Sec. 21804. Advisory boardsshall be established for DOER&D programs in energyefficiency, renewable energy,fossil energy, nuclear energy,and climate changetechnology. The requirementmay be met by existing DOEboards or by boardsestablished by the NationalAcademy of Sciences.Existing advisory committeesshall continue for R&Dprograms of the Office ofScience.

Sec. 1405. Same.

Improved coordinationof technology transferactivities.

No specific provision. Sec. 21805. A TechnologyTransfer Coordinator isestablished to oversee DOEtechnology transfer activitiesand coordinate the activitiesof a Technology PartnershipWorking Group. TheWorking Group is to beestablished with represen-tatives of the DOE nationallaboratories and single-purpose research facilities.

Sec. 1407. A TechnologyPartnership Working Group isestablished, consisting ofrepresentatives of the DOEnational laboratories andsingle-purpose researchfacilities, to coordinatetechnology transfer. ATechnology TransferCoordinator is establishedto oversee DOE technologytransfer activities andcoordinate the activities of theTechnology PartnershipWorking Group.

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Technologyinfrastructureprogram.

No specific provision. No similar provision. Sec. 1408. A program isestablished to help nationallaboratories and single-purpose research facilitiesstimulate the development oftechnology clusters, “leverageand benefit” fromcommercial activities, andexchange scientific andtechnological expertise withother organizations. A reportmust be submitted byJanuary 1, 2004, on whetherthe program should continueand, if so, how it shouldbe managed.

Small businessadvocacy andassistance.

No existing provision. Sec. 21806. The Secretary ofEnergy must require eachnational laboratory todesignate a small businessadvocate to increase smallbusinesses’ participation inprograms and to providetraining and technicalassistance for them. DOEmay also require that anadvocate be appointed at eachsingle-purpose researchfacility.

Sec. 1409. A smallbusiness assistance programis established. A smallbusiness advocate must beappointed at each nationallaboratory and, if directed bythe Secretary, at each single-purpose research facility.

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Other transactionsauthority.

42 U.S.C. 7256. No similar provision. Sec. 1410. DOE may useother transactions to fundresearch projects when (1) astandard contract, grant, orcooperative agreement wouldbe infeasible or inappropriate,(2) the research to besupported does not duplicateexisting DOE programs, and(3) government funds are halfor less of the total funding forthe project. Thesetransactions shall be exemptfrom the patent rights andinvention reportingrequirements of 42 U.S.C.5908, and DOE shall notdisclose confidentialinformation submitted bynon-federal participants ordeveloped as part of asupported project.Guidelines for thesetransactions must beestablished.

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Mobility of scientificand technicalpersonnel.

No existing provision. Sec. 21807. DOE mustprepare a report ondisincentives to the transfer ofscientific and technicalpersonnel among thecontractor-operated nationallaboratories and single-purpose research facilities.

Sec. 1411. TheTechnology TransferCoordinator (established bySec. 1407) must prepare areport on disincentives to thetransfer of scientific andtechnical personnel amongthe contractor-operatednational laboratories andsingle-purpose researchfacilities.

NAS report oncommercial energytechnology applications.

No existing provision. Sec. 21808. DOE shallarrange with NAS to studyobstacles to acceleratingcommercial energytechnology applications andtechnology transfer.

Sec. 1412. NAS must preparea study on accelerating thecycle of energy technologyresearch, development, anddeployment.Sec. 1413. The TechnologyPartnership Working Group(established by Section 1407)must issue biennial reports onbarriers to technologytransfer, ways to lower them,and the readiness fortechnology transfer oftechnologies developed underthe DOE energy efficiency,renewable energy, fossilenergy, and nuclear energyprograms.

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Outreach. No existing requirement. Sec. 21809. For each programauthorized under this title, theSecretary of Energy isdirected to create an outreachcomponent to provideinformation to stakeholders,including business, industry,consumers, universities,national laboratories andothers.

No provision.

Competitive bidding. No existing requirement. Sec. 21810. All managementand operating contracts underthis title must be bid competi-tively. The Secretary ofEnergy may grant a waiver ona case-by-case basis, but mustnotify Congress two monthsbeforehand.

No provision.

Reprogramming. No existing requirement. Sec. 21811. The Secretary ofEnergy must report plans fordistributing appropriationsamong the programsauthorized under this title. Reprogrammings larger than5% must also be reported.

No provision.

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Energy research anddevelopment programsand construction withother laws.

R&D programs are currentlyfunded, but there are noexisting goals for reducingenergy intensity, curbingenergy use, and cuttingcarbon dioxide emissions.

Sec. 21812. The Secretary isdirected to carry out theprograms under this title inaccordance with other statutesthat govern the operations ofDOE and its programs.

Sec. 1201-1204. A DOEenergy R&D and deploymentprogram is charged with thegoals of reducing energyintensity by 1.9% annuallythrough 2020, reducing totalenergy use by 8 quadrillionBtu by 2020, and reducingcarbon dioxide by 166 millionmetric tons by 2020.

Universitycollaboration.

No existing requirement. Sec. 21813. The Secretary ofEnergy is directed to reporton the feasibility ofpromoting collaborationamong large and smallcolleges through grants,contracts, and cooperativeagreements on energyprojects. The Secretary isalso to consider incentives forsmall colleges.

Sec. 1505. DOE educationprograms must give priorityto activities that encouragewomen and minorities topursue scientific and technicalcareers. DOE nationallaboratories (and other DOEscience facilities if so directedby the Secretary) mustincrease the participation ofhistorically black colleges anduniversities, Hispanic-servinginstitutions, and tribalcolleges in activities such asresearch, equipment transfer,training, and mentoring. DOEis to report on activities underthis section within two years.

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Federal laboratoryeducational partners.

The Stevenson-WydlerTechnology Innovation Act(P.L. 96-480, as amended)requires that royalties beretained by the laboratory thatproduced the invention andthat cooperative R&Dagreements be consistent withthe missions and objectives ofthe agencies involved. Thereis no existing requirementthat the royalties be availablefor educational assistance. Also, there is no requirementthat all laboratories considerDOE missions and objectives.

Sec. 21814. The Stevenson-Wydler TechnologyInnovation Act is amended torequire that royalties from allfederal agencies distributedfor R&D at all nationallaboratories also be availablefor educational assistanceconsistent with DOE missionsand objectives. Also, the Actis broadened to require thatall cooperative R&Dagreements involving federalagencies and nationallaboratories must considereducational assistanceconsistent with DOE missionsand objectives.

No provision.

DOE-NASAcooperation.

No existing requirement. Sec. 21815. The Secretary ofEnergy is directed to form aninteragency agreement withthe National Aeronautics andSpace Administration(NASA) to make NASA’senergy expertise moreavailable to DOE programs. The covered technologiesshall include solar, wind, fuelcells, and hydrogen storageand distribution.

No provision.

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Department of Energy Management


External regulation ofDepartment of Energy.

DOE regulates nuclear safetyat its facilities, with oversightof defense-related facilities bythe Defense Nuclear FacilitiesSafety Board (AEA, Chapter21).

Sec. 22001. DOE shallprepare a report on externalregulation of its non-defensefacilities. The report shallstudy the transfer of nuclearsafety regulation for suchfacilities to the NuclearRegulatory Commission andworker safety and healthregulation to the OccupationalSafety and HealthAdministration.

No provision.

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Improved coordinationand management ofcivilian science andtechnology programs.

DOE’s administrativestructure is governed by theDepartment of EnergyOrganization Act (42 U.S.C.7132).

Sec. 22002. The DOEOrganization Act is amendedto designate an AssistantSecretary to head the Officeof Science. Also, certaintechnical and conformingamendments are made.

Sec. 1406. The new positionof DOE Under Secretary forEnergy and Science isestablished, with authorityover the assistant secretariesresponsible for energy R&D,energy technology, andscience, and also to serve asscience and technologyadvisor to the Secretary. TheDirector of the Office ofScience shall become anassistant secretary, whilecertain advisoryresponsibilities are transferredto the new under secretary.An additional assistantsecretary position is created,and it is the sense of theSenate that leadership forDOE missions in nuclearenergy should be at theassistant secretary level.

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Report on equalemploymentopportunity practices.

No existing requirement. Sec. 22003. The Secretary ofEnergy is required to producea biennial report on equalemployment opportunitiesthat includes a review of theoutreach efforts by eachnational laboratory’scontractor to attract womenand minorities, and asummary of laboratorycollaboration with the Officeof Federal ContractCompliance Programs.

No provision.

Sense of Congress onprocurement controls.

No specific provision. Sec. 22004. The Secretary ofEnergy is directed toimplement more stringentprocurement and inventorycontrols, including thepurchase card program, toprevent waste, fraud, andabuse.

No provision.

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Clean School Buses


Grants for purchasingalternative fuel schoolbuses.

No provision. Sec. 23001. A pilot programis established by DOE toprovide grants to localgovernments and contractorsthat provide school busservice for public schoolsystems. Grants are providedto aid in the purchase ofalternative fuel and advanceddiesel buses, and theinfrastructure necessary tosupport them.

Sec. 814. Similar to theHouse provision, except thatthe program is jointlyadministered by DOE and theDepartment ofTransportation.

Fuel cell busdevelopment anddemonstrationprogram.

No provision. Sec. 23002. A pilot programis established for thedevelopment anddemonstration of fuel cellschool buses.

Sec. 815. Substantiallysimilar to the Houseprovision.

Programs under theTransportation Equity Act forthe 21st Century (TEA-21,P.L. 105-178) providefunding for demonstration offuel cell buses, mainly fortransit purposes.

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Hybrid electric andfuel cell vehicles.

No provision. See Sec. 23002 and Sec.15033.

Sec. 807. Appropriations of$225 million to DOE areauthorized for FY2003 toexpand R&D for advancedtechnologies to improve thecleanliness of automobiles. Emphasis is placed on (1) fuelcells, including hightemperature membranes forfuel cells and fuel cellauxiliary power systems; (2)hydrogen storage; (3)advanced vehicle engine andemission control systems; (4)advanced batteries and powerelectronics for hybridvehicles; (5) advanced fuels;and (6) advanced materials.

Fuel celldemonstration.

No current law. See Sec. 23002. Sec. 809. The Secretaries ofEnergy and Defense are tojointly carry out a program toaccelerate use of fuel celltechnology in military andnon-military uses. Technologies developed inthe Partnership for a NewGeneration of Vehicles andFreedom Car programs arespecifically targeted.

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Bus replacement. Sec. 5111 of theTransportation Equity Act forthe 21st Century (TEA-21,P.L. 105-178) established theAdvanced VehicleTechnologies Program(AVP), which promotesadvanced technologydevelopment throughcontracts, grants, andcooperative agreements.

Sec. 23002. A pilot programis established for thedevelopment anddemonstration of fuel cellschool buses.[also see Sec. 15033]

Sec. 810. The Secretary ofTransportation is required tocarry out a study to determinehow best to replace diesel-fueled buses with buses thatare hybrids, or buses that usefuel cells or cleaner burningalternative and renewablefuels.

While TEA-21 authorized atotal of $250 million over fiveyears, only $10 million totalwas appropriated in FY1999and FY2000. Congress hasnot appropriated funds forAVP since FY2000.

Diesel retrofitprogram.

No provision. Sec. 23003. A pilot programis established to providegrants for the developmentand application of retrofittechnologies for diesel schoolbuses.



No provision. Sec. 23004. A total of $300million is authorized forFY2004 through FY2006, forprojects under Secs. 23001and 23002. However, nomore than a total of $25million may be used for Sec.23002. Such sums asnecessary are authorized forSec. 23003.

Sec. 816. A total of $210million is authorized forFY2004 through FY2006 forprojects under sections 814and 815. There is a similar$25 million limitation onspending for fuel cell buses(Sec. 815).

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Resources

Indian Energy


Indian energy. Grants and low-interest loansare authorized for energyprojects on Indianreservations under TitleXXVI of the Energy PolicyAct of 1992 (25 U.S.C. 3501et seq.).

Sec. 30101. Procedures areoutlined whereby an Indiantribe may “enter into a leaseor business agreement for thepurpose of energydevelopment” and “grantright-of-way over the Indianland of the Indian tribe for apipeline or electrictransmission or distributionline without specific approvalby the Secretary” of theInterior.

Grants and low-interest loansfor the development of tribalenergy resources areeliminated.

No similar provision

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Comprehensive Indianenergy program.

No provision. No provision. Sec. 401. A comprehensiveIndian energy program at theDOE is established to assisttribes in meeting their energyneeds and expandingopportunities to developenergy resources on triballands. A grant program and aloan guarantee program forIndian energy developmentare established. Federalagencies may give apreference to purchasingIndian energy.

Office of IndianEnergy Policy andPrograms.

No provision. No provision. Secs. 402-403. Within theDOE, an Office of IndianEnergy Policy and Programsis created to administer theprograms from the previoussection, 401. Appropriationsare authorized.

Siting energy facilitieson tribal lands.

No provision. No provision. Sec. 404. Indian tribes maydirectly lease land and rights-of-way for energy facilities,without case-by-case reviewby the Secretary of theInterior, if the tribe develops,and the Secretary approves,tribal regulations, and theterm of the lease does notexceed 30 years.

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Indian mineraldevelopment actreview.

No provision. No provision. Sec. 405.The Secretary of theInterior is required toundertake a review and makerecommendations regardingtribal opportunities under theIndian Mineral DevelopmentAct.

Renewable energystudy.

No provision. No provision. Sec. 406. The Secretary ofEnergy is required to reporton energy consumption andrenewable energydevelopment potential onIndian land, includingidentification of barriers tothe development of renewableenergy on tribal land.

Federal PowerMarketingAdministrations.

No provision. No provision. Sec. 407. The BonnevillePower Administration andWestern Area PowerAdministration are authorizedto assist in developingdistribution systems thatprovide power to Indian tribesusing the federal transmissionsystem.

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Feasibility study ofcombined wind andhydropowerdemonstration project.

None. No provision. Sec. 408. DOE, inconjunction with the Armyand the Interior Department,is to study the feasibility ofobtaining a marketable, firmelectricity source from windenergy generated on triballands connected withhydropower generated by theU.S. Army Corp of Engineersat the Missouri Riverpowerplants.

Oil and Gas


Program on oil and gasroyalties-in-kind.

Royalty-in-kind authority isprovided by the OuterContinental Shelf Lands Actof 1953, as amended (43U.S.C. 1331, et seq.).

Sec. 30201. When the federalgovernment sells any physicalquantity of oil and gasreceived as royalty-in-kindpayments, it must sell it formarket value and mustreceive revenues greater thanor equal to those receivedunder a comparable cashpayment royalty.


Clarification of fairmarket rental valuedeterminations forpublic lands and ForestService rights-of-way.

The Mineral Leasing Act of1920, as amended, governsthe development of oil andgas on public lands (30 U.S.C181 et seq.).

Sec. 30202. The Secretary ofthe Interior and the Secretaryof Agriculture shall reviseand update annually rentalfees for land encumbered by alinear right-of-way to reflectfair market value.

No provision.

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USGS estimates of oiland gas resourcesunderlying onshorefederal lands.

The Mineral Leasing Act of1920, as amended, providesthe authority for onshorefederal lands to be leased fordevelopment.

Sec. 30203. The U.S.Geological Survey (USGS)shall identify restrictions andimpediments relevant toonshore oil and gasdevelopment and also reportthe amount of the resourcethat otherwise would havebeen produced.

Sec. 602. The Secretary of theInterior shall ensure timelyaction on applications for oiland gas leases and drillingpermits on federal lands.

Royalty incentives forcertain offshore areas.

The Outer Continental ShelfLands Act (OCSLA, 43U.S.C. 1331) provides theauthority for oil and gasleasing and developmentoffshore. The DeepwaterRoyalty Relief Act of 1996specifies how deepwaterroyalty relief is granted.

Sec. 30204. Royalty reliefwould be provided for shallow water deep gasproduction at certain depthsand for deepwater areas atfixed production levels atcertain depths.

No provision.

Marginal propertyproduction incentives.

No specific provision. Sec. 30205. The Secretary ofthe Interior may reduce orterminate royalties forindependent oil and gasproducers under certainconditions.

No provision.

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Federal onshore oiland gas leasing andpermitting practices.

No provision. Sec. 30206. The Secretariesof the Interior and Agricultureshall evaluate the oil and gasleasing and permittingprocess with particularemphasis on time frames forthe permit process. TheSecretaries shall report theirfindings to House and Senatecommittees.


Management of federaloil and gas leasingprograms.

No specific provision. Sec. 30207. Best managementpractices shall be employed inthe onshore oil and gasleasing program to ensuretimely development ofresources.


Consultation regardingoil and gas leasing onpublic lands.

None. Sec. 30208. A memorandumof understanding (MOU)between the Secretary of theInterior and the Secretary ofAgriculture shall includeprovisions to ensure timelyaction on oil and gas leasesfor development andcoordinated management.


Oil and gas leaseacreage limitations.

Section 27(d)(1) of theMineral Leasing Actestablishes acreage limits onleaseholdings within a singlestate (30 U.S.C. 184 (d)(1)).

Sec. 30209. Single-stateleasing limitations shall notinclude acreage committed toa federally approved unit orcooperative plan orcommunitization agreement.

Secs. 603. Lease acreagelimitations are altered.

CRS-144


Federal reimbursementfor orphan wellreclamation.

No specific provision. Sec. 30210. The Secretary ofthe Interior shall establish aprogram that ensures thereclamation of orphaned wellson federal lands.

Sec. 604. The Secretary of theInterior, in cooperation withthe Secretary of Agriculture,shall establish a program thatensures the remediation oforphaned wells on federalland.

Preservation ofgeological andgeophysical data.

None. Sec. 30211. The Secretary ofthe Interior shall establish aData Archive Systemincluding subsurface datafrom federal lands, a nationalcatalog, an advisorycommittee, and financialassistance to participatingstates. $30 million would beauthorized for FY2004-FY2008.

No provision.

Compliance withExecutive Order No.13211; actionsconcerning regulationsthat significantly affectenergy supply,distribution, or use.

None. Sec. 30212. Before anyperson takes any action thatcould have a significantadverse effect on the supplyof domestic energy resourcesfrom federal public lands, theperson shall comply withExecutive Order No. 13211,requiring preparation of a“Statement of EnergyEffects.”

No provision.

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Reimbursement forcosts of NEPAanalyses,documentation, andstudies.

No provision. Sec. 30213. The MineralLeasing Act (30 U.S.C. et.seq.) is amended to providereimbursement for costs forNEPA-related studies undercertain circumstances.

No provision.

Alternateenergy-related uses onthe Outer ContinentalShelf (OCS).

No provision. Sec. 30214. The Secretary ofthe Interior may granteasements or rights-of-way onthe outer continental shelf(OCS) for energy-relatedactivity on a competitive ornoncompetitive basis and maycharge fees for such access. Asurety bond or other financialguarantee is required.

No provision.

Appeals of consistencydeterminations underthe Coastal ZoneManagement Act of1972.

The Secretary of the Interiorshall publish notice toindicate when an appeal of aconsistency determination hasbeen closed under Section319 of the Coastal ZoneManagement Act of 1972(CZMA, 16 U.S.C. 1465).

Sec. 30215. Time limits areestablished for appeals ofCZMA consistencydeterminations.

No provision.

Task force on energyproject streamlining.

No provision. Sec. 30216. It is the sense ofCongress that the task forceset up by Executive order13212 to review and expeditethe permitting process forenergy projects should remainin place until its objectivesare met.

No provision.

CRS-146


Pilot program onNorthern RockyMountains energyresource management.

No provision. Sec. 30217. “The Sense ofthe Congress” is to carry outthe pilot project included inExecutive Order 13212 in theNorthern Rocky Mountains inorder to improve managementof the region’s energyresources.

No provision.

Energy developmentfacilitator study.

No provision. Sec. 30218. The Council onEnvironmental Quality shallreport on the feasibility ofestablishing the position ofFacilitator for EnergyDevelopment.

No provision.

Combinedhydrocarbon leasing.

Lands within a special tarsands area shall be leasedunder general competitivebidding regulations (MineralLeasing Act of 1920, 30U.S.C. 226 (b)(2), Section 17(b)(2)).

Sec. 30219. The MineralLeasing Act is amended toallow separate leases for tarsands and for oil and gas inthe same area.

No provision.

Royalty paymentsunder leases under theOuter ContinentalShelf Lands Act.

Compensation is provided tothe state of Louisiana and itslessees for net drainage of oiland gas resources (OCSLands Act of 1953 asamended, 43 U.S.C. 1334,section 5 (j)).

Sec. 30220. The lessee of a“covered lease tract” maywithhold royalties due to theUnited States if it pays theState of Louisiana 44 centsfor every dollar of the federalroyalty withheld. Thisroyalty relief ends whencertain drainage claims aresatisfied.

No provision. A covered lease tract is a tractor portion of a tract (A) lyingseaward of the zone definedand governed by section 8(g)of the OCSLA (43 U.S.C.1337(g)) or (B) lying withinsuch zone but to which suchsection does not apply.

CRS-147


Federal technicalassistance forabandoned oil and gaswells.

Mineral Leasing Act of 1920. No provision. Sec. 605. The Secretary ofEnergy shall establish a technical assistance programto help states quantify andmitigate risks fromabandoned wells.

Offshore oil and gassuspensions.

Outer Continental ShelfLands Act (43 U.S.C. 1334).

No provision. Sec. 606. The MineralsManagement Service (MMS)can suspend offshore oil andgas operations to reevaluategeological data if thesuspension would preventwaste from unnecessary welldrilling.

Coalbed methanestudy.

Coalbed methane R&D iscarried out by the DOE andfunded through the Interiorand Related AgenciesAppropriation Bill.

No provision. Sec. 607. The Secretary of theInterior and others shall study the effects of coalbedmethane production on waterresources.

Oil and gas productionroyalty and tax policyevaluation.

Mineral Leasing Act of 1920. No provision. Sec. 608. The Secretary ofEnergy and others mustevaluate the effect of oil andgas royalty and tax policieson oil and gas production.

CRS-148


Coal leasing in thePowder River Basin.

Coal is currently being leasedon federal lands under theMineral Leasing Act of 1920(30 U.S.C.181).

No provision. Sec. 613. The Secretary of theInterior shall report toCongress on plans to resolveconflicts betweendevelopment of coal andcoalbed methane in thePowder River Basin.

The Bureau of LandManagement can issuedevelopment leases for twodifferent resources on thesame tract of land. Thepotential for conflict arisesfrom overlapping coal andgas leases in the PowderRiver Basin.

CRS-149

Biomass Energy


Grants to improve thecommercial value offorest biomass forelectric energy, usefulheat, transportationfuels, petroleum-basedproduct substitutes,and other commercialpurposes.

No existing provision. Sec. 30301. DOE isempowered to make grants ofup to $20 per green ton (a tonof freshly sawed or undriedwood) to individuals,businesses, communities, andIndian tribes for thecommercial use of biomassfor fuel, heat, or electricpower. Also, DOE isempowered to make grants asan incentive to projects thatdevelop ways to improve theuse of, or add value to,biomass. Preference is givento small towns, rural areas,and areas at risk of damage tothe biomass resource. DOE isauthorized $50 million over10 years for this section.

No provision.

Arctic Coastal Plain Domestic Energy


Short title. None. Sec. 30401. Arctic CoastalPlain Domestic EnergySecurity Act of 2003.

No provision.

CRS-150


Definitions. The coastal plain of the ArcticNational Wildlife Refuge(ANWR) is defined as an areaon a specific map by theAlaska National InterestLands Conservation Act of1980 (ANILCA Sec. 1002, 16U.S.C. 3142(b)(1)).

Sec. 30402. The ANWRcoastal plain comprises about1.5 million acres as describedin Appendix I to Part 37 ofTitle 50 CFR.

No provision. The House definitionidentifies the same area ascurrent law.

Leasing program forlands within theCoastal Plain.

Oil and gas leasing in theArctic National WildlifeRefuge (ANWR) is prohibitedunder provisions of theAlaska National InterestLands Conservation Act of1980 (ANILCA Sec. 1003, 16U.S.C. 3143).

Sec. 30403. Section 1003 ofANILCA is repealed, and theSecretary of the Interior isrequired to implement acompetitive oil and gasleasing program for theANWR Coastal Plain. The1987 “Final LegislativeEnvironmental ImpactStatement” is deemed tosatisfy the NationalEnvironmental Policy Act of1969 with respect toestablishing the leasingprogram. With regard toother NEPA requirements, anew study is called for,limited to identification ofone preferred action and oneother drilling option. TheSecretary may exclude anyspecial area up to a specifiedlimit from leasing or surfaceoccupancy, althoughhorizontal drilling access ispermitted.

No provision.

CRS-151


Lease sales. Current oil and gas leases areheld under the MineralLeasing Act of 1920, asamended.

Sec. 30404. The Secretary ofthe Interior is directed to offerto qualified bidders not lessthan 200,000 acres in the firstlease sale, which is to takeplace within 22 months ofenactment. Additional salesmay be made if interestexists.

No provision. If other requirements – suchas NEPA reviews and winterpre-leasing exploration –cannot be completed in thistime, the consequences arenot specified.

Grant of leases by theSecretary.

The Mineral Leasing Act of1920 established lease termsand conditions on publiclands in general, but leasingin ANWR is prohibited underALILCA.

Sec. 30405. The Secretary ofthe Interior may grant leasesto the highest qualifiedbidder.

No provision.

Lease terms andconditions.

Leasing is prohibited underANILCA.

Sec. 30406. A royalty rate of12.5% in-value or in-kind isassessed on production. Aswith other federal oil and gasleases, lessees are responsiblefor the reclamation ofdisturbed lands in the CoastalPlain to their prior use or to ahigher or better use asapproved by the Secretary ofthe Interior. A fair share ofdevelopment work must go toAlaskans, similar to theTrans-Alaska Pipeline.Lessees will be required tonegotiate a project laboragreement. Export of ANWRoil is prohibited.

No provision.

CRS-152


Coastal Plainenvironmentalprotection.

The Mineral Leasing Actincludes provisions thataddress surface disturbancefor leasing elsewhere;ANILCA addresses surfacedisturbance for explorationactivities in ANWR.

Sec. 30407. Under a “nosignificant adverse effectstandard” the Secretary of theInterior shall ensure that,consistent with Sec. 30403:the maximum amount ofsurface area used forproduction and supportfacilities is not more than2,000 acres; there is nosignificant adverse affect onfish and wildlife; and the bestavailable technology is usedfor development. The lesseesmust comply with all relevantstate and federal laws, andsite-specific assessments mayalso be carried out.

No provision. Sec. 30403 requires theSecretary to administer leaseterms and conditions in amanner that ensures thereceipt of “fair market value”for ANWR oil and gasresources.

Expedited judicialreview.

No specific provision. Sec. 30408. Requests forjudicial review must be filedwithin 90 days of the actionbeing challenged (with certainexceptions) and are limited towhether the Secretary of theInterior has complied withterms of this title.

No provision.

CRS-153


Federal and statedistribution ofrevenues.

Distribution of revenues isestablished under the MineralLeasing Act of 1920; Alaskareceives 90%.

Sec. 30409. Alaska shallreceive semiannual paymentsof 50% of the revenues(royalties, bonus bids, rents )received from oil and gasleasing activity under thistitle. Bonus payments areauthorized to be appropriatedto the Low Income HomeEnergy Assistance Program.

No provision.

Rights-of-way acrossthe Coastal Plain.

ANILCA. Sec. 30410. The Secretary ofthe Interior shall ensure thatrights of way and easementsfor transporting oil and gashave no significant adverseimpact on the Coastal Plain,fish, wildlife, or their habitat.

No provision. As noted above, Sec. 30403requires the Secretary toadminister lease terms andconditions in a manner thatensures the receipt of “fairmarket value” for ANWR oiland gas resources.

Native lands:conveyance andregulation

Sec. 22(g) of the AlaskaNative Claims Settlement Act(P.L. 92-203) makes nativesurface lands within ANWRsubject to regulations of theRefuge, and thereforeprecludes energydevelopment. Subsurfaceresources on land owned bythe Arctic Slope RegionalCorporation (ASRC) aregoverned by the terms of a1983 contract.

Sec. 30411. The Secretary ofthe Interior shall conveycertain additional surfacerights to the Kaktovik InupiatCorporation and certainsubsurface rights to the ArcticSlope Regional Corporation.

No provision. By opening the coastal plainto development, the Housebill opens more than 100,000acres of native lands in thecoastal plain to development. The House bill does notspecify if native lands aresubject to the bill’s acreagelimitation or to environmentalrestrictions on federal lands.The contract with ASRC, withdifferent environmentalprovisions, appears to pertain.

CRS-154


Local governmentimpact aid andcommunity serviceassistance.

None. Sec. 30412. The Secretary ofthe Interior may use fundsfrom the Coastal Plain LocalGovernment Impact AidAssistance Fund for financialassistance to eligible entitiesas a result of oil and gasexploration and developmentin the Coastal Plain.

No provision.

Hydropower


Study and report onincreasing electricpower productioncapability of existingfacilities.

No provision. Sec. 30501. Within 12 monthsof enactment, the Secretary ofthe Interior will submit astudy that describes existingand potential capacity athydropower facilities underInterior Departmentjurisdiction. In addition, thestudy must identify costs andbenefits of producingadditional hydropower fromeach facility. The study shalldescribe the impact thatincreased hydroelectricproduction would have onirrigation, fish, wildlife,Indian tribes, river health,water quality, navigation,recreation, fishing, and floodcontrol.

No provision.

CRS-155


Study andimplementation ofincreased operationalefficiencies inhydroelectric powerprojects.

No provision. Sec. 30502. Within 18 monthsof enactment, the Secretary ofthe Interior will submit astudy of all hydropowerplants under Interior’sadministrative jurisdictionthat have greater than 50 MWof capacity. This study willdescribe whether existingplants are operated tomaximize efficiency and willidentify measures that couldimprove such optimization. Itwill also describe the impactof optimized hydroelectricpower production onirrigation, fish, wildlife,Indian tribes, river health,water quality, navigation,recreation, fishing, and floodcontrol. The Secretary shallalso work with theAdministrator of each federalpower marketingadministration to determinehow the value of hydropowercan be optimized.

No provision.

CRS-156


Shift of project loads tooff-peak periods.

No provision. Sec. 30503. The Secretary ofthe Interior shall, with theconsent of affected irrigationcustomers, study and adjustwater pumping schedules atBureau of Reclamationfacilities to reduce powerconsumption during periodsof peak electric powerconsumption. This sectiondoes not affect theDepartment of the Interior’sexisting obligations toprovide electric power, water,or other benefits.

No provision.

Geothermal Energy


Competitive lease salerequirements.

The type of geothermal leaseprocedure is based onwhether lands are within aknown geothermal resourcearea (Geothermal Steam Actof 1970, 30 U.S.C. 1003).

Sec. 30601. Lease proceduresfor competitive andnoncompetitive lease sales areamended. Competitive leasesales are held every twoyears. If no competitive bid ismade, then lands are availablefor two years under anoncompetitive process.

No provision.

CRS-157


Special provisionsregarding direct use oflow temperaturegeothermal energyresources.

Geothermal energyproduction on federal lands ischarged a royalty of 10%-15% under section 5 of the Geothermal Steam Act (30U.S.C. 1004).

Sec. 30602. A fee schedule inlieu of any royalty or rentalpayments is established forlow temperature geothermalresources. Existinggeothermal leases may beconverted to leases for directutilization of low temperaturegeothermal resources.

No provision.

Royalties andnear-term productionincentives.

A royalty between 10% and15% is imposed on theamount or value of steam orother form of heat derivedfrom production under ageothermal lease (section 5 ofthe Geothermal Steam Act of1970, 30 U.S.C. 1004).

Sec. 30603. Royalties fromgeothermal leases shall be3.5% of the gross proceedsfrom geothermal electricitysales and 0.75% of the grossproceeds from the sale ofitems produced from directuse of geothermal energy.Royalties on new or expandedgeothermal production arereduced by half for six yearsafter enactment. Onehundred percent of the federalroyalties from a qualifiedlease are to be transferred tothe state.

No provision.

CRS-158


Consultation regardinggeothermal leasing andpermitting on publiclands.

No specific provision. Sec. 30604. An MOUbetween the Secretaries of theInterior and Agricultureshould include provisions thatwill identify knowngeothermal areas on publiclands within the NationalForest System and establishan administrative procedurethat will include time framesfor processing.

No provision.

Review and report toCongress.

The Secretary of the Interiorcan withdraw public landsfrom leasing or other publicuse and modify, extend, orrevoke withdrawals underprovisions of the FederalLand Policy and ManagementAct of 1976 (FLPMA, 43U.S.C. 1714).

Sec. 30605. The Secretary ofthe Interior shall review allareas under moratoria andwithdrawal and report toCongress on whether thereasons for the withdrawalsstill apply.

No provision.

Reimbursement forcosts of NEPAanalyses,documentation, andstudies.

None. Sec. 30606. Under certainconditions the Secretary ofthe Interior may reimbursethrough royalty credits thecost of a study ordocumentation required underNEPA.

No provision.

Assessment ofgeothermal energypotential.

No specific provision. Sec. 30607. The USGS shallprovide the U.S. Congresswith an updated assessmentof geothermal resources.

No provision.

CRS-159


Cooperative or unitplans.

No specific provision. Sec. 30608. The GeothermalSteam Act of 1970 (30 U.S.C.1001 et seq.) is amended tofacilitate cooperative or unitplans for development.

No provision.

Royalty on byproducts. No specific provision. Sec. 30609. Leasable mineralsproduced as a byproduct of ageothermal lease shall payroyalties under the MineralLeasing Act (30 U.S.C. 181).

No provision.

Repeal of authorities ofSecretary to readjustterms, conditions,rentals, and royalties.

The Secretary of the Interiormay readjust terms andconditions of a geothermallease at certain intervals,including rental and royaltyrates (Geothermal Steam Actof 1970, 30 U.S.C. 1007).

Sec. 30610. Sections 8(a) and(b) of the Geothermal SteamAct are repealed, related toadjusting lease conditions.

No provision.

Crediting of rentaltoward royalty.

Annual rental fees of not lessthan $1 per acre ongeothermal leases are paid inadvance (Geothermal SteamAct of 1970, 30 U.S.C. 1004).

Sec. 30611 Annual rentalrevenue paid on a geothermallease shall be creditedtowards the royalty on thatsame lease.

No provision.

Lease duration andwork commitmentrequirements.

The primary lease term for ageothermal lease is 10 yearsand shall continue as long asgeothermal steam is producedor used in commercialquantities (Geothermal SteamAct of 1970, 30 U.S.C. 1005).

Sec. 30612. The primary termof a geothermal lease is tenyears but may be extended fortwo additional five-yearperiods if work commitmentsare satisfied.

No provision.

CRS-160


Advanced royaltiesrequired forsuspension ofproduction.

No specific provision. Sec. 30613. If productionfrom a geothermal lease issuspended during a period inwhich royalties are required,then royalties must be paid inadvance until productionresumes.

No provision.

Annual rental. Rents are $1 per acre orfraction thereof for each yearof a geothermal lease(Geothermal Steam Act of1970, 30 U.S.C. 1004).

Sec. 30614. Rental rates fornoncompetitive andcompetitive geothermal leasesales are established.

No provision.

Coal


Short title. No provision. Sec. 30701. This title may becited as the Coal LeasingAmendments Act of 2003.

No provision.

Repeal of the 160-acrelimitation for coalleases.

Modifications to an existingcoal lease shall not exceed160 acres or add acreagelarger than that in the originallease (Mineral Leasing Act of1920, 30 U.S.C. 203).

Sec. 30702. The 160-acrelimitation on coal leasemodifications is repealed.

No provision.

Mining plans. No provision. Sec. 30703. Criteria areestablished for extending themine-out period of a coallease beyond 40 years.

No provision.

CRS-161


Payment of advanceroyalties under coalleases.

Coal leases are subject todiligent developmentrequirements, but theSecretary of the Interior maysuspend the condition ofcontinued operation uponpayment of advance royalties(Mineral Leasing Act of1920, 30 U.S.C. 207 (b)).Advanced royalties arecomputed on a fixedproduction to reserve ratioand the aggregate number ofyears advanced royalties maybe accepted in lieu ofproduction shall not exceed10.

Sec. 30704. The Secretary ofthe Interior may, upon thepayment of advance royalties,suspend a coal lease’srequirement for continuousoperation. Advanced royaltiesshall be based on the averageprice for coal sold in the spotmarket from the same regionand the aggregate number ofyears advanced royalties maybe accepted in lieu ofproduction shall not exceed20.

No provision.

Elimination of deadlinefor submission of coallease operation andreclamation plan.

An operation and reclamationplan must be submitted withinthree years after a lease isissued under the MineralLeasing Act of 1920 (30U.S.C. 207(c)).

Sec. 30705. The three-yeardeadline is eliminated.

No provision.

Financial assuranceswith respect to bonusbids.

Financial assurance isrequired to guaranteepayment of bonus bidinstallments (Mineral LeasingAct of 1920, 30 U.S.C.201(a)).

Sec. 30706. A financial suretybond to cover deferred bonusbid payments shall not berequired.

No provision.

CRS-162


Inventory requirement. No provision. Sec. 30707. The Secretary ofthe Interior, in consultationwith the Secretaries ofAgriculture and Energy, shallassess coal on public lands,including low-sulfur coal, andvarious impediments todeveloping such resources.

No provision.

Application ofamendments.

No provision. Sec. 30708. Amendmentsmade by this title apply to anycoal lease issued before, on,or after the date of theenactment of this act.

No provision.

Federal mineinspectors

The Secretary of Labor usesthe Mine Safety and HealthAdministration (MSHA, 29U.S.C. 557) to carry out theMine Safety and Health Actof 1977, (30 U.S.C. 801).

No provision. Sec. 1507. To maintain asufficient number of qualifiedmine inspectors, theDepartment Labor shall hireand train new mineinspectors.

CRS-163

Insular Areas Energy Security


Insular areas energysecurity.

Comprehensive energy plansfor insular areas are requiredto detail the potential forrenewable energy resources(94 Stat. 3480-3481).

Sec. 30801. Congress findsthat electric powertransmission and distributionlines in insular areas are notadequate to withstandhurricane and typhoondamage, and identifies a needto assess energy production,consumption, infrastructure,reliance on imported energy,and indigenous sources ofenergy in insular areas. TheSecretary of the Interior, inconsultation with theSecretary of Energy, isrequired to update insulararea plans to reflect thesefindings. $5 million isauthorized to be appropriated,in part, for matching grantsfor projects designed toprotect electric powertransmission distribution linesin one or more of theterritories of the United Statesfrom damage caused byhurricanes and typhoons.

Sec. 1702. DOE must begin astudy within 60 days ofenactment that will assess theshort- and long-term threatsto the economy of Hawaiiposed by insecure supply andvolatile prices. Not later than300 days after the date ofenactment of this section, theSecretary of Energy shallsubmit to Congress a reportdetailing the Secretary'sfindings, conclusions, andrecommendations.

Sec. 1704. Insular areas aredirected to reassess energyproduction, use,infrastructure, resources, andlong-term energy plans.

CRS-164

Miscellaneous Provisions


Report on energyfacility rights-of-wayand corridors onfederal lands(continued in nextrow).

No current law. Sec. 30901. Not later than 1year after enactment, theSecretaries of Agriculture andthe Interior, in consultationwith the Secretaries ofCommerce, Defense, andEnergy, and FERC, shallsubmit to Congress a reportthat addresses the location ofexisting rights-of-way onfederal lands for oil and gaspipelines and electrictransmission and distributionfacilities. In addition, thereport will describe potentialadditional capacity within therights-of-way and corridors. The report will also include aplan to disseminate, uponrequest, GeographicInformation System-basedinformation regarding therights-of-way. (Continued innext row.)

Sec. 6101. Each federalagency must review energytransport rights-of-way underits jurisdiction and report tothe Secretary of Energy andto FERC on whether theright-of-way can support newor additional capacity andwhat changes might be calledfor to accommodateadditional capacity. Inperforming the review,agency heads should consultwith affected states and otherstakeholders and considersafety issues involved in suchexpansions.

CRS-165


Report on energyfacility rights-of-wayand corridors onFederal lands(continued from rowabove).

Sec. 30901 (continued fromrow above). Within 24months of enactment, theSecretaries of Agriculture,Commerce, Defense, Energy,and the Interior, inconsultation with FERC andthe affected industries, willidentify corridors on federallands that are needed oruseful for oil and gaspipelines and electricitytransmission within the 11contiguous Western states.Corridors shall be identifiedin the remaining states withinfour years after the date ofenactment. Designatedcorridors shall beincorporated into federalland-use plans.

CRS-166


Electricitytransmission lineright-of-way inCleveland NationalForest, California.

The Secretary of the Interiorand the Secretary ofAgriculture are authorized togrant, issue, or renewrights-of-ways through publiclands, in part, for thetransmission of electricity. There is no time limit forreview of applications(Federal Land Policy andManagement Act, 43 U.S.C.1761-1763).

Sec. 30902. The Bureau ofLand Management willbecome the lead federalagency for environmental andother necessary reviews for ahigh-voltage electricitytransmission line right-of-waythrough the Trabuco RangerDistrict of the ClevelandNational Forest in the State ofCalifornia. All reviews arerequired to be completedwithin 1 year of enactment. All grants, easements,permits, plan amendments,and other approvals for thetransmission line right-of-waymust be issued within 60 daysafter completion of theenvironmental reviews. Allrights-of-way applicationsthat were received prior toDecember 31, 2002, havepreference over applicationsand proposals received afterthat date.

No provision.

Consultation regardingenergy rights-of-wayon public lands.

No current law. Sec. 30903. Within sixmonths after enactment, theSecretaries of the Interior andAgriculture shall submit toCongress a Memorandum ofUnderstanding to coordinateenvironmental complianceand processing of rights-of-way applications.

No provision.

CRS-167


Enhancing energyefficiency inmanagement ofFederal lands.

No existing requirement. Sec. 30904. To the extentpracticable, the Secretaries ofthe Interior, Commerce, andAgriculture are required to use energy-efficienttechnologies in public andadministrative buildingsassociated with managementof the National Park System,and other public lands. Further, to the extentpracticable, the Secretariesare directed to use energy-efficient vehicles, includingthose with biodiesel or hybridengine technologies.

No provision.

Permitting of windenergy developmentprojects on publiclands.

No existing requirement. Sec. 30905. The Secretary ofthe Interior is required topermit wind energy testingfacilities on federal lands, inaccordance with BLMInstruction Memo 2003-20(IM-20). Rent for windenergy development projectsis limited to 50% of themaximum set out in IM-20until capacity reaches 10,000megawatts (MW) or 10 yearshas elapsed.

No provision.

CRS-168


Sense of the Congressregarding generationcapacity of electricityfrom renewable energyresources on publiclands.

No existing requirement. Sec. 30906. Within the next10 years, the Secretary of theInterior is encouraged toapprove at least 10,000 MWof hydropower projects onpublic lands.

No provision.

Assessment of oceanthermal energyresources.

No existing requirement. Sec. 30907. Within one year,the Secretary of the Interior isdirected to review assess-ments of ocean thermalenergy resources, undertakenew assessments if needed,and report on the resourcepotential and estimated costsfor commercialization.

No provision.

Sense of the Congressregarding developmentof minerals underPadre Island NationalSeashore.

In purchasing land for thePadre Island NationalSeashore, the Secretary of theInterior shall permit existingowners to retain mineralrights (Federal Enabling Act,16 U.S.C. 459d).

Sec. 30908. In recognition ofthe split estate on PadreIsland National Seashore, thefederal government owns thesurface rights while themineral rights are heldprivately and by the state ofTexas.

No provision.

Encouragingprohibition of off-shoredrilling in the GreatLakes.

No provision. Sec. 30909. States andprovinces adjacent to theGreat Lakes are encouragedto prohibit off-shore drillingin the Great Lakes.

No provision.

CRS-169


Regulatory reviews No existing requirement. No provision. Sec. 1701. Each federalagency is required to reportevery five years on regulatorychanges needed to removebarriers to market entry fornew energy-efficienttechnologies (such as fuelcells) and to marketdevelopment for existingtechnologies.

Report on energysavings and water use

No provision. No provision. Sec. 1708. DOE is requiredto report on cost-effectiveimprovements to reduceenergy use at municipal waterand waste treatment facilities.

Report on research onhydrogen productionand use

No provision. No provision. Sec. 1709. DOE is directed toreport on any projects at DOEnuclear facilities that involvehydrogen production and usein fuel cell development orinvolve other alternativeenergy productiontechnologies.

The energy tax titles (Sections 41001-44002 of the House bill and Sections 1900-2508 of the Senate bill) are not included in this report.

CRS-170

Clean Coal



No specific provision. Sec. 50001. Funding isauthorized for FY2004-FY2012 for the Clean CoalPower Initiative.

Sec. 1232. DOE shall carryout projects to demonstratethe commercial applicationof advanced lignite and coal-based technology for powerplants. Technical milestonesand project criteria areestablished, and a study ofcoal technologies is required.

Although there is no currentauthorization, funding for thisprogram is provided throughthe Interior and RelatedAgencies appropriation bill.

Project criteria. No specific provision. Sec. 50002. Technical criteriaare established for coal-basedgasification and otherprojects. The federal share offinancing each clean coalproject shall not exceed 50%.

See Sec. 1232 (above).

Report. None. Sec. 50003. A report onproject status and technicalmilestones shall be submittedafter the first year and everytwo years by the Secretary ofEnergy to variouscongressional committees.

See Sec. 1232.

Clean Coal Centers ofExcellence.

None. Sec. 50004. The programshall include grants touniversities to establishCenters of Excellence forEnergy Systems of the Future.

No provision.

CRS-171

Hydrogen


Definitions. The Spark M. MatsunagaHydrogen ResearchDevelopment, andDemonstration Act of 1990(P.L. 101-566) authorizeshydrogen fuel research at theDepartment of Energy.

Sec. 60001. Various terms aredefined.

Sec. 1223 (a-b). Short titleand purposes are described.

Although authorizationsunder the law have expired,hydrogen fuel research anddevelopment is ongoing at theDepartment of Energy.

Plan. Sec. 103 of P.L. 101-566required the Secretary ofEnergy to prepare acomprehensive 5-yearprogram management plan.

Sec. 60002. The Secretary ofEnergy is required to transmitto Congress a coordinatedplan for hydrogen fuelresearch and developmentunder this title.

Sec. 1223 (c). The Secretaryof Energy is required todevelop a coordinated planand report to Congressbiennially.

Program. Sec. 104 of P.L. 101-566requires the Secretary ofEnergy to conduct acooperative hydrogenresearch and developmentprogram. The federalgovernment may provide nomore than 50% of the cost ofthe research.

Sec. 60003. A program isestablished through theDepartment of Energy toaddress hydrogen fuelproduction, transmission,storage, and vehicle fueling,as well as advanced vehicletechnologies, to complementhydrogen fuel development. Various program goals aredefined, as well asrequirements for grants andother funding under theprogram.

Sec. 1223 (d). Section 104 isamended so that the federalgovernment may provide upto 75% of necessary funding. Further, if the Secretary ofEnergy deems appropriate,this limitation may be waived.

Funding authorizations underP.L. 101-566 have expired,but hydrogen fuel research isongoing at the Department ofEnergy.

CRS-172


Demonstrations. Sec. 105 of the Act requiresthe Secretary of Energy toconduct demonstrations ofcritical technologies. Thefederal government mayprovide no more than 50% ofthe cost of the demonstration.

No similar provision. Sec. 1223(e). If the Secretarydeems that the technical risksare high enough, the 50%limitation may be waived.

Technology Transfer Sec. 106 of the Actestablished a program totransfer hydrogentechnologies from thegovernment to the privatesector.

No similar provision. Sec. 1223(f). The program isexpanded to includetechnology transfer to foreigncountries.

Interagency task force. Sec. 107 of the Act requiredthe Secretary of Energy toconsult with other agenciesand coordinate federalhydrogen fuel research.

Sec. 60004. An interagencytask force is established topromote the development ofhydrogen fuel and vehicles.

Sec. 1223(i)(2)(202). Aninteragency task force isestablished to overseeintegrated hydrogen and fuelcell research.

Advisory Committee. Sec. 108 of the Actestablished a HydrogenTechnical Advisory Panel toadvise the Secretary ofEnergy on hydrogen researchprograms under the Act.

Sec. 60005. The HydrogenTechnical and Fuel CellAdvisory Committee isestablished to advise theSecretary on the aboveprogram.

Sec. 1223(g). The number ofmembers on the panel isspecified (currently theSecretary has authority todetermine the makeup of thepanel), and term limits areestablished.

External review. No provision. Sec. 60006. The Secretary ofEnergy is required to contractwith nongovernmentalentities to review the planunder sec. 60002 and theprogram under sec. 60003.


CRS-173


Miscellaneousprovisions.

No provision. Sec. 60007. The Secretary ofEnergy is permitted torepresent the United Stateswith respect to hydrogen andfuel cell research anddevelopment.



Authorizations expired afterFY1998.

Sec. 60008. A total of $1.8billion is authorized for FY2004 through FY2008.

Sec. 1223(h). A total of $290million is authorized forFY2003 through FY2006.

In the Senate bill, Sec. 1223(i)also authorizes a total of $130million for integratedhydrogen and fuel cellresearch.

Integrated fuel cell andhydrogen research.

The Hydrogen Future Act of1996 (P.L. 104-271) directsthe Secretary of Energy tointegrate fuel cell andhydrogen research. Itauthorized a total of $50million for FY1997 andFY1998 for integratedresearch.

No similar provision. Sec. 1223(i). The Act isamended to establish acooperative integratedhydrogen and fuel cellresearch program overseen byan interagency task force. Atotal of $130 million isauthorized for FY2003through FY2006.

Fuel cell program atNational Parks.

No provision. Sec. 60009. A program isestablished to providematching funds to assist in thedeployment of fuel cells atnational parks. A total of $14million is authorized forFY2004 through FY2010.


CRS-174


Advanced powersystem technologyincentive program.

No provision. Sec. 60010. A program isestablished to provideincentive payments to ownersor operators of advancedpower generation systems. Eligible systems includeadvanced fuel cell, turbine, orhybrid power systems. Atotal of $70 million isauthorized for FY2004through FY2010.


Fuel cell vehicleprogram.

Various programs currentlyexist to promote the research,development, anddemonstration of fuel cellsand fuel cell vehicles.

No similar provision. Sec. 824. The Secretary ofEnergy is required to developa program to enable theavailability of 100,000hydrogen fuel cell vehicles by2010, and 2.5 million vehiclesby 2020. Further, theprogram should includetimetables for thedevelopment of hydrogen fuelinfrastructure to support thosevehicles.

The development of a“Hydrogen Roadmap,”including timetables for thedevelopment of infrastructurehas been a key component ofthe Department of Energy’sHydrogen Program.

CRS-175


Historic PreservationAct and pipelineenvironmental review

No provision. No provision. Sec. 721 The Chairman ofthe Council on EnvironmentalQuality (CEQ), incoordination with theChairman of FERC, is toform an interagency taskforce that will develop aninteragency memorandum ofunderstanding to expeditepipeline projects. The taskforce is to consist of the leadagency chairs, and the headsof BLM, the Fish andWildlife Service, Corps ofEngineers, Forest Service,EPA, and the AdvisoryCouncil on HistoricPreservation.

Among the perceivedbottlenecks in the approval ofnew gas pipeline projects thatthe Bush Administrationseeks to streamline is theenvironmental reviewprocess.

At issue regarding historicpreservation is whetherpipeline companies needingFERC approval to expand orrenovate facilities should becompelled by FERC to fundand perform historicaldocumentation andpreservation.

Housing


Capacity building forenergy-efficient,affordable housing.

No provisions for energyefficient housing are in theHousing and UrbanDevelopment (HUD)Demonstration Act (42U.S.C. 9816).

Sec. 70001. Activities arerequired that provide energyefficient affordable housingand other residential measuresunder the HUDDemonstration Act.

Sec. 931. Activities arerequired that provide energyefficient affordable housingand other residential measuresunder the HUDDemonstration Act.

CRS-176


Increase of CDBGpublic services cap forenergy conservationand efficiencyactivities.

Section 105(a)(8) of theHousing and CommunityDevelopment Act of 1974allows 15% of communitydevelopment block grant(CDBG) public servicefunding to be used for energyefficiency.

Sec. 70002. The amount ofassistance for providingpublic services involvingenergy efficiency is increasedfrom 15% to 25%.

Sec. 932. Same.

FHA mortgageinsurance incentivesfor energy efficienthousing.

Section 203(b)(2) of theNational Housing Act allowssolar energy equipment toincrease the amount ofproperty value that can becovered by mortgageinsurance by up to 20%.

Sec. 70003. The amount ofproperty value that can becovered by mortgageinsurance due to solar energyequipment is increased from20% to 30%.

Sec. 933. Same.

Public Housing CapitalFund.

Section 9 of the United StatesHousing Act creates a CapitalFund available to publichousing agencies to develop,finance, and modernize publichousing developments and tomake management improve-ments to these housingfacilities. There is currentlyno provision for energyconservation projects thatinvolve water-conservingplumbing fixtures andfittings.

Sec. 70004. The PublicHousing Capital Fund ismodified to include certainenergy and water useefficiency improvements.

Sec. 934. Same.

CRS-177


Grants forenergy-conservingimprovements forassisted housing.

Section 2(a)(2) of theNational Housing Act, asamended by Section251(b)(1) of the NationalEnergy Conservation PolicyAct, empowers HUD to makegrants for energyconservation projects inpublic housing, but it has noprovision for energy- andwater-conserving plumbingfixtures and fittings.

Sec. 70005. HUD is directedto provide grants for certainenergy and water efficiencyimprovements to multifamilyhousing projects.

Sec. 935. Same.

North AmericanDevelopment Bank.

No existing requirement. Sec. 70006. The NorthAmerican Development Bankis encouraged to financeenergy efficiency projects.

Sec. 936. Same.

Capital fund No existing provision forproposed energy projects (42U.S.C. 1437).

No similar provision. Sec. 937. Activities of theHousing Act Capital Fund areexpanded to include broaderauthorization for energyefficiency projects.

Energy-efficientappliances.

No existing requirement. Sec. 70007. Public housingagencies are required topurchase cost-effectiveEnergy Star appliances.

Sec. 938. Same.

CRS-178


Energy efficiencystandards.

The federal governmentencourages states to useenergy efficiency standardsfor public and assistedhousing, and ModelEfficiency codes, that are setby the Council of AmericanBuilding Officials (CABO)(42 U.S.C. 12709).

Sec. 70008. The energyefficiency standards andcodes are changed fromCABO to the 2000International EnergyConservation Code.

Sec. 939. Same.

Energy strategy forHUD.

No existing requirement. Sec. 70009. The Secretary ofHousing and UrbanDevelopment shall implementan energy conservationstrategy for public andassisted housing.

Sec. 940. HUD is required toimplement an energyefficiency strategy to reduceutility expenses in public andassisted housing. Also, HUDis directed to create an Officeof Energy Management toimplement the strategy andreport on it to Congress.

CRS-179

National Climate Change Policy

Sense of Congress


Sense of Congress onglobal warming.

No provision. No provision. Sec. 1001. Growing evidenceis found that increases ingreenhouse gasconcentrations arecontributing to global climatechange, and it is the Sense ofthe Congress that the UnitedStates should demonstrateinternational leadership andresponsibility in mitigatingthe health, environmental,and economic threats posedby global warming. andassess the FederalGovernment’simplementation of it.

Climate Change Strategy


Definitions. No provision. No provision. Sec. 1012. Critical terms usedin the title are defined,including “climate-friendlytechnology” and“stabilization of greenhousegas concentrations.”

No specific targets or timeframes for greenhouse gasreduction are mentioned.

CRS-180


National climatechange strategy.

Sec. 1602(a) of the 1992Energy Policy Act states that“The ... National EnergyPolicy Plan ... shall include a... strategy ... designed toachieve ... the stabilizationand eventual reduction in thegeneration of greenhousegases....”

Article 4, 2(b) of the ratified.United Nations FrameworkConvention on ClimateChange (UNFCCC) states:“Parties [developed countries]shall communicate ...information on its policiesand measures ... with the aimof returning individually orjointly to their 1990 levels ...anthropogenic emissions ofcarbon dioxide and othergreenhouse gases.”

No provision. Sec. 1013. The President,through a new Office ofNational Climate ChangePolicy (ONCCP) in theExecutive Office of thePresident (EOP), is to developa National Climate ChangeStrategy (NCCS) based onparameters identified in theTitle. The ONCCP is directedto develop the NCCS with thelong-term goal of stabilizationof greenhouse gasconcentrations. The NCCS isto encompass four keyelements – (1) emissionsmitigation measures; (2)technology innovation; (3)climate adaptation research;and (4) expanded efforts toresolve remaining scientificand economic uncertainty. The ONCCP is to develop theNCCS consistent with variousnational goals and withmeaningful public andinterest group participation. The NCCS is to be updatedevery four years, and progressreports are to be sent by thePresident to Congressannually. It is to be reviewedby the National Academy ofSciences.

This title sets up newinstitutions and institutionalarrangements to study globalclimate change, itsimplications, and possibleresponses. It does not statethat its goal is compliancewith the UNFCCCcommitment the U.S. madeunder article 4, 2(b) when itratified the UNFCCC in 1992.

CRS-181


Office of National Climate Change Policy.

No provision. No provision. Sec. 1014. The ONCCP isestablished within the EOP. ONCCP is to focus onachieving the long-term goalof stabilizing greenhouse gasconcentrations whileminimizing adverse short-term and long-term economicand social effects. Dutiesincluding establishingpriorities for the CCRS;establishing the InteragencyTask Force; ensuring theobjective nature of the CCRS;and advising the President onfederal implementation ofclimate change activities.Among the duties of theDirector are to advise thePresident on the multipleimpacts of governmentprograms, tax, trade, andforeign policies on achievingthe CCRS, and to prepare anannual report for thePresident to submit to theCongress under Sec. 1013.The Interagency Task Forceshall serve as the primaryforum through which federalagencies assist the ONCCP indeveloping and updating theCCRS, and assist the Directorof the ONCCP in preparingits annual report to Congress.

New office established withinthe Executive Office of thePresident to coordinateclimate change policy.

CRS-182


Office of ClimateChange Technology.

No provision. No provision. Sec. 1015. The Office ofClimate Change Technology(OCCT) is established withinDOE. Responsibilitiesinclude managing an energytechnology R&D programthat focuses on high-risk,breakthrough technologiesthat promise to mitigateand/or sequester emissions ofgreenhouse gases. Inaddition, OCCT is to supportdevelopment of the NCCSand the activities of theInteragency Task Forcethrough provision of staff,data, and analytical tools. TheOCCT is to maintain coreanalytical capabilities andother expertise in support ofthe NCCS. It is required tosubmit to Congress and theONCCP an annual report onits progress in meeting thegoal of the energy technologyresearch and developmentprogram. In addition, theOCCT is to design andmanage an internationalcarbon dioxide sequestrationmonitoring and datacollection program. Theobject is to determine theappropriateness of varioussequestration mechanisms.

Authorizes cost-sharingprograms with the privatesector.

CRS-183


Additional offices andactivities.

No specific provisions. No provision. Sec. 1016. Other federalagencies may establishappropriate offices asnecessary to carry out theprovisions of this Act.

Science and Technology Policy


Global climate changein the Office of Scienceand Technology Policy.

No specific provisions. No provision. Sec. 1021. Section 101(b) ofthe National Science andTechnology Policy,Organization, and PrioritiesAct of 1976 is amended toinclude under the Office ofScience and TechnologyPolicy (OSTP) the prioritygoal of “improving efforts tounderstand, assess, predict,mitigate and respond toglobal climate change.”

Director of Office ofScience andTechnology Policyfunctions.

No specific provisions. No provision. Sec. 1022. OSTP is to advisethe Director of ONCCP onscience and technologymatters as they relate toclimate change.

CRS-184



Additional informationfor regulatory review.

No specific provisions. No provision. Sec. 1031. Agencies arerequired to include in anyStatement of Energy Effectspursuant to Executive Order13211 an estimate of the netchange in greenhouse gasemissions resulting from theproposed federal action, andwhich policies or measureswill be undertaken to mitigateor offset the increasedemissions.

Greenhouse gasemissions from federalfacilities.

No specific provisions. No provision. Sec. 1032. Four federalagencies are required todevelop a methodology forestimating greenhouse gasemissions from all federallyowned, leased, or operatedfacilities, including mobilesources. An emissionsestimate is required within 18months of enactment.

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National Greenhouse Gas Database


Purpose. A voluntary greenhousereduction accounting systemexists under Sec. 1605(b) ofthe 1992 Energy Policy Act.

A mandatory greenhousereporting system forpowerplants is required underSec. 821 of the 1990 CleanAir Act Amendments.

No provision. Sec. 1101. Purpose is toestablish a reliable andaccurate greenhouse gasinventory, reductions registry,and information system.

Definitions. No specific provisions. No provision. Sec. 1102. Terms for Title XIare defined. Six gases areexplicitly included in thedefinition of greenhousegases: carbon dioxide,methane, nitrous oxide,hydrofluorocarbons,perfluorocarbons, and sulfurhexafluoride. Others may beadded to the list.

CRS-186


Establishment ofmemorandum ofagreement.

No specific provisions. No provision. Sec. 1103. Specifies duties forthe Department of Energy,Department of Commerce,Environmental ProtectionAgency, and Department ofAgriculture with respect tothe database. The Director ofONCCP shall facilitate amemorandum of agreementamong the agencies todevelop and operate thedatabase.

National GreenhouseGas Database.

No specific provisions. No provision. Sec. 1104. The NationalGreenhouse Gas Database isestablished to collect, verify,and analyze information ongreenhouse gas emissions andreductions by entities in theUnited States. Thecomprehensive system is tomaximize completeness whileminimizing costs toparticipants. Reductionsrecorded may be applied toany future control program.

CRS-187


Greenhouse gasreduction reporting.

Voluntary greenhouse gasreductions are currentlyreported under Sec. 1605(b)of the 1992 Energy PolicyAct.

No provision. Sec. 1105. All participatingentities must establish abaseline on an entity-widebasis (except for sequestrationprojects), and report annuallyto the appropriate agencytheir direct and indirectgreenhouse gas emissionsbeginning the April 1 of thethird calendar year afterenactment. Entities maychoose to report verifiedreductions achieved beforethe above date.

Reportable reductions includeverifiable reductions reportedunder Sec. 1605(b) ofEPACT.

Measurement andverification.

No specific provisions. No provision. Sec. 1106. The fourdesignated agencies shalljointly developcomprehensive measurementand verification methods toensure the registry is anaccurate record of greenhousegas emissions, reductions,sequestrations, andatmospheric concentrations.

Independent reviews. No specific provisions. No provision. Sec. 1107. Database efficacyand operation shall bereviewed by the GeneralAccounting Office everythree years. The scientificunderpinning of the databaseshall be reviewed by theNational Academy ofSciences every four years.

CRS-188


Review ofparticipation.

No specific provisions. No provision. Sec. 1108. Within five yearsof enactment, if participationin the registry involves lessthan 60% of aggregategreenhouse emissions,participation by all entitiesshall be mandatory.

Enforcement. No specific provisions. No provision. Sec. 1109. Failure of anyparticipating entity to reportemissions under section 1108is subject to civil action infederal court and civilpenalties of up to $25,000 perday of non-compliance.

Report on statutorychanges andharmonization.

No specific provisions. No provision. Sec. 1110. The Presidentshall submit to Congresswithin three years ofenactment a report describingany necessary changes in lawnecessary to improve theaccuracy or operation of thedatabase or the Title.


No specific provisions. No provision. Sec. 1111. There areauthorized to be appropriatedsuch sums as necessary tocarry out this Title.

CRS-189

Climate Change Science and Technology

Department of Energy Programs


DOE global changescience research.

No specific provisions. No provision. Sec. 1301. DOE’s Office ofScience shall conduct acomprehensive researchprogram to understand andaddress the effects of energyproduction and use on theglobal climate system. Activities shall includeclimate modeling andintegrated assessment ofclimate change effects oneconomic and social systems.Over four years, authorizedappropriations are $755million.

Amendments to theFederal NonnuclearResearch andDevelopment Act of1974.

The Federal NonnuclearResearch and DevelopmentAct of 1974 (42 U.S.C. 5905)authorizes a comprehensiveprogram of research,development anddemonstration of nonnuclearenergy resources to facilitatetheir commercialization.

No provision. Sec. 1302. The FederalNonnuclear Research andDevelopment Act of 1974 isamended to add developmentof greenhouse gas reduction,removal, and sequestrationtechnologies to its purposes,along with pursuing a long-term climate technologystrategy to demonstrate avariety of technologies bywhich stabilization ofgreenhouse gases might bebest achieved.

CRS-190

Department of Agriculture Programs


Carbon sequestrationbasic and appliedresearch.

No specific provisions. No provision. Sec. 1311. The Secretary ofAgriculture is required tostudy the net sequestration ofcarbon by soils and plants,and study the net greenhousegas emissions fromagriculture, including thefunding of basic research through competitive grants.Applied research, includingcompetitive research grants,shall include sequestrationmethods and baselinemethodologies, among otherpriorities. The Secretary maydesignate two researchconsortia to carry out requiredresearch with up to 25% offunding. Funding isauthorized at $25 millionannually for four years.

CRS-191


Carbon sequestrationdemonstration projectsand outreach.

No specific provisions. No provision. Sec. 1312. The Secretary ofAgriculture is required tofund projects to demonstratethe ability to monitor andverify carbon sequestration,and to educate farmers andranchers about the economicand environmental benefits ofconservation practices thatincrease sequestration.Funding is authorized at $10million annually for fouryears.

Carbon storage andsequestrationaccounting research.

No specific provisions. No provision. Sec. 1313. The Secretary ofAgriculture is required tofund research on carbonstorage and sequestrationaccounting models and othertools that can assistlandowners in quantifyingcarbon release, sequestration,and storage from various landpractices. Five entities shallbe competitively chosen for apilot program to demonstrateand assess such tools indeveloping sequestrationpolicies. Funding isauthorized at $20 millionannually for five years.

CRS-192

International Energy Technology Transfer


Clean energytechnology exportsprogram.

No provision. No provision. Sec. 1321. An InteragencyWorking Group on CleanEnergy Technology Exportsis established to focus onopening and expandingenergy markets andtransferring clean energytechnology overseas.Authorized activities includeanalyzing opportunities forinternational development,demonstration, anddeployment of clean energytechnology, investigatingways to improve technologytransfer and technologyexports to foreign countries,and making other assessmentsand recommendations withrespect to the program’simplementation. Annualreports on activities andexpenditures are required.

CRS-193


International energytechnology deploymentprogram.

No specific provisions. No provision. Sec. 1322. Section 1608 ofthe 1992 Energy Policy Act isamended to include anInternational EnergyTechnology DeploymentProgram. Projects deployedin foreign countries that aresignificantly more efficientthan conventional technologyin terms of greenhouse gasesproduced per unit of energymay be eligible for loans orloan guarantees under theprogram. Such projectswould be cost-shared with thehost country: 50% hostcountry contribution in adeveloped county, 10%contribution in a developingcountry. Funding isauthorized at $100 millionannually for nine years.

CRS-194

Climate Change Science and Information

Amendments to the Global Change Research Act of 1990.


Amendments to theGlobal ChangeResearch Act of 1990.

1990 Global ChangeResearch Program Act (P.L.101-606) establishes theGlobal Climate ResearchProgram aimed atunderstanding and respondingto global change. (15 U.S.C.2921 et. seq.)

No provision. Sec. 1331-1333. Within theGlobal Change ResearchProgram, the Committee onEarth and EnvironmentalSciences is renamed theCommittee on Global ChangeResearch, and committeemembership is specified atthe deputy secretary level. Inaddition, a subcommittee onglobal change research isestablished.

Change in National Global ChangeResearch Plan.

1990 Global ChangeResearch Program Actestablishes the GlobalClimate Research Programaimed at understanding andresponding to global change.(15 U.S.C. 2934)

No provision. Sec. 1334. The Chairman ofthe National Science andTechnology Council isrequired to develop a 10-yearstrategic plan for the UnitedStates Global Climate ChangeResearch Program and submitthat plan to Congress within180 days of enactment. Arevised implementation planwould also be submitted.

CRS-195


Integrated ProgramOffice.

No specific provisions. No provision. Sec. 1335. The GlobalChange Research Act of 1990is amended to establish withinthe Office of Science andTechnology Policy (OSTP) anIntegrated Program Office tomanage coordination andintegration of global changeresearch activities andbudgets, along withidentifying projects to fillresearch gaps.

Research grants. The National Science andTechnology Council (NSTC)oversees the U.S. GlobalChange Research Program(15 U.S.C. 2935, EO 12881).

No provision. Sec. 1336. The NSTCCommittee on Global ChangeResearch shall list priorityareas for research anddevelopment on climatechange that are not currentlybeing addressed, and transmitthat list to the NationalScience Foundation. Fundingfor NSF for priority areas isauthorized at $17 millionannually.

CRS-196


Evaluation ofinformation.

NSTC has the authority toevaluate scientific uncertaintyassociated with global climatechange (15 U.S.C. 2936).

No provision. Sec. 1337. NSTC authority isexpanded to includeassessment and evaluation ofall uncertainties and policyimplications associated withglobal climate change.Information generated is to beevaluated by considering itsusefulness to local, state andnational decision makers andother stakeholders.

CRS-197

National Climate Services and Monitoring.


Amendment ofNational ClimateProgram Act.

Changes in findings.

Tools for regionalplanning.

Authorization ofAppropriations.

National ClimateService Plan.

The National ClimateProgram Act (15 U.S.C. 2901et seq.) requires developmentof a national climate programto assist in understanding andresponding to climateprocesses and theirimplications.

No provision. Sec. 1341-1345. TheNational Climate ProgramAct is amended to require theSecretary of Commerce tosubmit to congressionalcommittees an action plan fora National Climate Service. The plan shall includerecommendations andfunding estimates for anational center for climatemonitoring and predicting; anational coordinatedmodeling strategy; a programto ensure data quality anddissemination; andmechanisms to improvecoordination withingovernment and with theacademic community.

International Pacificresearch andcooperation.

No specific provision. No provision. Sec. 1346. Funding for theNational Oceanic andAtmospheric Administration(NOAA), the NationalAeronautics and SpaceAdministration (NASA), andthe Pacific El Nino/SouthernOscillation (ENSO)Applications Center isprovided to study climatevariability in the Asia-Pacificarea in cooperation with thecountries in the region.

CRS-198


Reporting on trends. No provision. No provision. Sec. 1347. As part of theNational Climate Service, theSecretary of Commerce is toestablish a comprehensiveatmospheric monitoring andverification program, andissue an annual report thatidentifies trends on local,regional, and national levelsalong with individual ormultiple source emissions orreductions.

Arctic research andpolicy.

15 U.S.C. 4102(d). No provision. Sec. 1348. The ArcticResearch and Policy Act isamended to provide grants forarctic research and funds tothe National ScienceFoundation (NSF) and federalagencies for arctic research.

Abrupt climate changeresearch.

No provision. No provision. Sec. 1349. Through NOAA,the Secretary of Commerce isto conduct research onpotential abrupt climatechange. Funding isauthorized at $10 millionannually for six years.

CRS-199

Ocean and Coastal Observing System.


Oceans and coastalobserving system.

Authorized under 10 U.S.C.7902(a), the National OceanResearch Leadership Councilprescribes policies andprocedures to implement theNational OceanographicPartnership Program.

No provision. Sec. 1351. Through theNational Ocean ResearchLeadership Council, thePresident shall establish andmaintain an integrated oceanand coastal observing systemfor understanding, improving,and protecting coastal andmarine ecosystems and otherpurposes.


No provision. No provision. Sec. 1352. Funding isauthorized for an observingsystem at $1.385 billion overfour years.

Climate Change Technology


NIST greenhouse gasfunctions.

Authorized under theNational Institute ofStandards and TechnologyAct (15 U.S.C. 272), theNational Institute ofStandards and Technology(NIST) conducts activities toenhance industrialcompetitiveness and is thelead laboratory for providingmeasurement and calibrationsto underpin technologicalprogress.

No provision. Sec. 1361. The NationalInstitute of Standards andTechnology Act is amendedto include research to developenhanced measurements,calibrations, standards, andtechnologies to enablereduced production ofgreenhouse gases.

CRS-200


Development of newmeasurementtechnologies.

Enhancedenvironmentalmeasurements andstandards.

See above. No provision. Sec. 1362-1363. TheSecretary of Commerce shallinitiate a program to developinnovative standards andtechnologies for calculatinggreenhouse gas emissions andreductions from varioussources. The NationalInstitute of Standards andTechnology Act is amendedto establish within theInstitute a program to performand support research onglobal climate changestandards and processes,focused on providingknowledge applicable toreducing greenhouse gases. Activities include developingenhanced monitoring andmodeling standards; assistingthe development of a baselinefor future greenhouse gasemissions trading, includinginternational trading; andassisting in developingimproved industrial processesdesigned to reduce oreliminate greenhouse gases. This effort shall include usingthe expertise of the NationalMeasurement Laboratories ofthe National Institute ofStandards and Technology.

CRS-201


Technologydevelopment anddiffusion.

See above. No provision. Sec. 1364. The Director ofthe National Institute ofStandards and Technologymay develop a program tosupport implementation ofnew “green” manufacturingtechnologies by the more than380,000 small manufacturers.


No current authorization. No provision. Sec. 1365. Funding isauthorized for NIST’s newglobal warming activities at$10 million annually for fiveyears.

Climate Adaptation and Hazards Prevention

Assessment and Adaptation.


Regional ClimateAssessment andAdaptation Program.

New program. No provision. Sec. 1371. The Presidentshall establish within theDepartment of Commerce aNational Climate ChangeVulnerability and AdaptationProgram for regional impactsof global climate change. The program shall submit areport to Congress within 2years on recommended mitigation strategies andprograms. Funding isauthorized at $4.5 million.

CRS-202


Coastal vulnerabilityand adaptation.

No provision. No provision. Sec. 1372. The Secretary ofCommerce shall conductregional assessments ofcoastal vulnerability toclimate change within twoyears of enactment, andsubmit to Congress regionaladaptation plans to addressthose impacts within 3 yearsof enactment. Matchingfunds to assist coastaladaptation programs shall beprovided based on theformula established in theCoastal Zone ManagementAct of 1972. A coastalresponse pilot program is alsoauthorized. Funding for theregional assessments andgrant program is authorized at$3 million each, annually.

Barrow ArcticResearch Center.

New program. No provision. Sec. 1373. The Secretary ofCommerce shall establish aBarrow Arctic ResearchCenter to support interagencyclimate change and arcticresearch, authorized at $35million.

CRS-203

Forecasting and Planning Pilot Programs.


Remote sensing pilotprojects.

Databaseestablishment.

Definitions.

New program. No provision. Sec. 1381-1382, 1384. TheNational Aeronautics andSpace Administration(NASA) may establish acompetitive grant programthrough NOAA’s CoastalServices Center for pilotprojects to explore theintegrated use of remotesensing and other geospatialinformation to addressgovernmental adaptationneeds to forecast coastal zoneand land use changes fromglobal climate change.

Air quality research,forecasts andwarnings.


No provision. No provision. Sec. 1383, 1385. NOAA isrequired to conduct regionalstudies and assessment of theeffects of transported andtransformed air pollutants. Inaddition, NOAA is toestablish a program toprovide regional air qualityforecasts and warnings.Funding for the studies isauthorized at $3 millionannually for four years, andfunding for the warningsystem is authorized at $5million for FY2003 and suchsums as necessary forsubsequent years.

CRS-204

Critical Energy Infrastructure

Department of Energy Programs


Definitions. None. No provision. Sec. 1801. Providesdefinitions used in the title.

Role of the Departmentof Energy.

None. No provision. Sec. 1802. The Department ofEnergy Organization Act isamended to clarify thatenergy infrastructure securityis part of DOE’s mission.

Critical energyinfrastructureprograms.

None. No provision. Sec. 1803. The Secretary ofEnergy is authorized toestablish programs offinancial, technical, andadministrative assistancerelated to critical energyinfrastructure security,consistent with overallnational infrastructuresecurity plans of thePresident.

Advisory committee onenergy infrastructuresecurity.

None. No provision. Sec. 1804. A broad-basedadvisory committee isestablished to review DOEpolicy and activities toimprove energy infrastructuresecurity.

CRS-205


Best practices andstandards for energyinfrastructure security.

None. No provision. Sec. 1805. The Secretary ofEnergy is authorized tosupport private-sector effortsto develop best practices andstandards for energyinfrastructure security.

Department of the Interior Programs


Outer ContinentalShelf energyinfrastructure security.

Deepwater OCS activity isconducted under the OuterContinental Shelf of 1953 (43U.S.C. 1331).

No provision. Sec. 1811. The Secretary ofthe Interior shall establish anOCS Energy InfrastructureSecurity Program to providefunds to states to protectagainst threats to OCSfacilities and relatedinfrastructure.

CRS-206

Iraq Oil Import Restrictions


Iraq oil importrestriction – title andfindings.

No provision. No provision. Sec. 2601. The IraqPetroleum Import RestrictionAct of 2002 finds that Iraq isin violation of U.N. Res. 687,regarding destruction ofweapons of mass destruction,as well as U.N. Res. 661,regarding smuggled oilexports. Importing oil fromIraq is declared not consistentwith U.S. foreign policy andnational security interests.

Events may have made thisprovision superfluous. Therecent regime change in Iraqand subsequent attempts toreestablish oil trade haveresulted in a new State OilMarketing Organization,which has awarded a numberof supply contracts directly tooil companies, includingseveral U.S. firms.

Prohibition of Iraq oilimports.

No provision. No provision. Sec. 2602. Direct or indirectoil imports from Iraq arebanned.

Termination/presidentialcertification.

No provision. No provision. Sec. 2603. Imports from Iraqmay resume upon presidentialcertification to Congress thatIraq is in compliance withU.N. Resolutions 687 & 986,that it has stoppedcompensating suicide bomberfamilies, or that such importsare no longer contrary to U.S.interests.

Humanitarianinterests.

No provision. No provision. Sec. 2604. It is the sense ofthe Senate that the Presidentshould encourage public andprivate humanitarian aid sothe Iraqi people will not beadversely impacted.

CRS-207


Definitions. No provision. No provision. Sec. 2605. U.N. Resolutions661 (oil exports andsmuggling), 687 (weapons ofmass destruction), and 986(the oil-for-food program) aredefined.

Effective date. No provision. No provision. Sec. 2606. The prohibition onIraq oil imports starts 30 daysafter enactment.



Science andTechnology AssessmentService.

The Office of TechnologyAssessment was establishedin 1972 by P.L. 92-484 (2U.S.C. 471 et seq.). Althoughstill authorized, it has notbeen funded since FY1995and no longer operates.

No similar provision. Sec. 1601. A Science andTechnology AssessmentService is established withinthe legislative branch toprovide Congress withinformation on national issuesin science and technologypolicy.

The service created by theSenate bill would be similarin some ways to the formerOffice of TechnologyAssessment, but with amodified structure and scope.

Fair treatment ofpresidential judicialnominees.

No provision. No provision. Sec. 2701. It is the sense ofthe Senate that the SenateJudiciary Committee shouldhold regular hearings onjudicial nominees andexpeditiously schedulehearings on nomineessubmitted May 9, 2001, andresubmitted September 5,2001.

Of the 10 nominees describedin the Senate provision, fourwere confirmed in the 107th

Congress and three more havebeen confirmed in the 108th

Congress. Of the threeremaining, two have beenreported from the JudiciaryCommittee and one has not.

CRS-208

Table 2. Authorizations in H.R. 6 as passed by the House.(In Millions of Dollars)

ss = such sums as may be necessary

House HR6 Title FY 04 FY 05 FY 06 FY 07 FY 08 FY 04-08 FY 09-13 FY 04-13 Senate §

Division A – ENERGY AND COMMERCE

TITLE I – ENERGY CONSERVATION

Subtitle A – Federal Leadership in Energy Conservation

Sec. 11001 Energy & water saving measures in congressional buildings. a 2.0 2.0 2.0 2.0 2.0 10.0 10.0 20.0 NE

Sec. 11009 Advanced Building Efficiency Testbed. 6.0 6.0 6.0 18.0 18.0 NE

Sec. 11011 Use of photovoltaic energy in public buildings. NE

Photovoltaic Energy Commercialization Program 210.0 210.0 210.0 210.0 210.0 1,050.0 1,050.0

Photovoltaic Systems Evaluation Program 52.7 52.7 52.7 52.7 52.7 263.5 263.5

Subtitle B – Energy Assistance and State Programs

Sec. 11021 LIHEAP and Weatherization Assistance.

Low-income Home Energy Assistance Program 3,400.0 3,400.0 3,400.0 10,200.0 10,200.0 901

Weatherization Assistance 325.0 400.0 500.0 1,225.0 1,225.0 901

Sec. 11022 State energy programs. 100.0 100.0 125.0 325.0 325.0 902

Sec. 11023 Energy efficient appliance rebate programs. 50.0 50.0 50.0 50.0 50.0 250.0 250.0 NE

Sec. 11024 Energy efficient public buildings. ss ss ss ss ss ss ss ss 903

Sec. 11025 Low income community energy efficiency pilot program. 20.0 20.0 20.0 60.0 60.0 904

TITLE II – OIL AND GAS

Subtitle A – Alaska Natural Gas Pipeline

Sec. 12014 Alaska pipeline construction training program. a 20.0b NE

CRS-209


Subtitle B – Strategic Petroleum Reserve

Sec. 12102 Strategic Petroleum Reserve expansion. 1,500.0b 1,500.0 1,500.0 NE

Sec. 12103 Permanent authority to operate the Strategic PetroleumReserve and other energy programs.

ss ss ss ss ss ss ss ss601

Subtitle D – Unproven Oil and Natural Gas Reserves Recovery Program

Sec. 12309 Authorization of appropriations for this subtitle. 100.0b 100.0 100.0 NE

TITLE III – HYDROELECTRIC

Subtitle B – Additional Hydropower

Sec. 13201 Hydroelectric production incentives. 10.0 10.0 10.0 10.0 10.0 50.0 50.0 100.0 NE

Sec. 13202 Hydroelectric efficiency improvement. a 10.0 10.0 10.0 10.0 10.0 50.0 50.0 100.0 NE

Sec. 13204 Increased hydroelectric generation at existing Federal facilities. ss ss ss ss ss ss ss ss NE

TITLE IV – NUCLEAR MATTERS

Subtitle B – Miscellaneous Matters

Sec. 14023 NRC training program. 1.0 1.0 1.0 1.0 4.0 4.0 NE

Sec. 14029 Cooperative R&D for uranium mining. 10.0 10.0 10.0 30.0 30.0 NE

TITLE V – VEHICLES AND FUELS

Subtitle B – Advanced Vehicles

Sec. 15024 Authorization of appropriations for this subtitle. 200.0 200.0 200.0 NE

CRS-210


Subtitle C – Hydrogen Fuel Cell Heavy-Duty Vehicles

Sec. 15034 Authorization of appropriations for this subtitle. 10.0 10.0 10.0 10.0 10.0 50.0 50.0 NE

Subtitle D – Miscellaneous

Sec. 15041 Railroad efficiency. 25.0 30.0 35.0 90.0 90.0 1214

Sec. 15051 Conserve by Bicycling Program. 6.2 6.2 6.2 823

TITLE VI – ELECTRICITY

Subtitle D – PUHCA Amendments

Sec. 16055 Transfer of resources from the SEC to FERC. ss ss ss ss ss ss ss ss 237

Subtitle F – Renewable Energy

Sec. 16072 Renewable energy production incentive. 1 ss ss ss ss ss ss ss ss 261

TITLE VII – MOTOR FUELS

Subtitle A – General Provisions

Sec. 17103 Findings and MTBE transition assistance. 250.0 250.0 250.0 750.0 750.0 833

Sec. 17108 Commercial byproducts from municipal solid waste loanguarantee

ss ss ss ss ss ss ss ss820B

Subtitle B – MTBE Cleanup

Sec. 17201 Funding for MTBE contamination 850.0b 832

TITLE VIII – AUTOMOBILE EFFICIENCY

CRS-211


Sec. 18001 Implementation and enforcement of fuel economy standards. 2 5.0 5.0 5.0 15.0 15.0 NE

Division B – SCIENCE 3

TITLE I – RESEARCH AND DEVELOPMENT

Subtitle A – Energy Efficiency

Sec. 21101 Authorization of appropriations for this subtitle. Total 616.0 695.0 772.0 865.0 2,948.0 2,948.0 1211

Allocations:

Lighting Systems (sec. 21111) 50.0 50.0 50.0 50.0 50.0 250.0 200.0 450.0 1213

Electric Motor Control Technology (sec. 21122) 2.0 2.0 2.0 2.0 8.0 8.0

Secondary Electric Vehicle Battery Use Program (sec. 21132) 4.0 7.0 7.0 7.0 25.0 25.0

Energy Efficiency Science Initiative (sec. 21141) 20.0 25.0 30.0 35.0 110.0 110.0

Subtitle B – Distributed Energy and Electric Energy Systems

Sec. 21201 Authorization of appropriations for this subtitle. Total 190.0 200.0 220.0 240.0 850.0 850.0 NE

Allocation:

Micro-cogeneration Energy Technology (sec. 21213) 5.0 5.5 6.0 6.5 23.0 23.0

Subtitle C – Renewable Energy


Allocations:

Bioenergy (sec. 21311 & sec. 21706) 135.4 155.6 167.7 180.0 638.7 638.7 1222

Public Buildings (sec. 21322) 30.0 30.0 30.0 30.0 120.0 120.0

Subtitle D – Nuclear Energy

CRS-212



Allocations:

Nuclear Infrastructure Support (sec. 21411(e)) 125.0 130.0 135.0 140.0 530.0 530.0 514

Advanced Fuel Recycling Program (sec. 21421) 80.0 93.0 106.0 120.0 399.0 399.0

University Programs (sec. 21431) 35.2 44.4 49.2 55.0 183.7 183.7

Subtitle E – Fossil Energy

Sec. 21501 (a) Total Authorization of appropriations for subtitle except (b). 530.0 556.0 583.0 611.0 2,280.0 2,280.0

Allocations:

Fuel Cell Proton Exchange Membrane Tech (sec.21511(c)(2)) 28.0 28.0 28.0 28.0 112.0 112.0 1231

Coal Mining Technologies (sec. 21512) 12.0 15.0 27.0 27.0 1233

Office of Arctic Energy (sec.21501(c)(3)) 25.0 25.0 25.0 25.0 25.0 125.0 75.0 200.0 NE

Sec. 21501 (b) Ultra-deepwater and Unconventional Resources 4

Subtitle F – Science

Sec. 21601 Authorization of appropriations for this subtitle. Total 3,785.0 4,153.0 4,618.0 5,310.0 17,866.0 17,866.0 1251

Allocations:

Fusion Energy Sciences except ITER & FIRE 276.0 300.0 340.0 350.0 1,266.0 1,266.0

ITER participation (sec.21611) and FIRE plan (sec.21612) 12.0 20.0 50.0 75.0 157.0 157.0 1254

Spallation Neutron Source- Construction 124.6 79.8 41.1 245.5 245.5

Spallation Neutron Source- Other 103.3 5 103.3 103.3

Nanotechnology Research and Development (sec.21633) 265.0 292.0 322.0 355.0 1,234.0 1,234.0 1252

Science and Technology Scholarship Program (sec.21636) 0.8 1.6 2.0 2.0 6.4 6.4 1501-2

Genomes to Life (sec.21641) 100.0 ss ss ss 100.0 100.0

CRS-213


Sec. 21632 Precious metal catalysis research. 6 ss ss ss ss ss

Sec. 21634 Advanced scientific computing for energy missions. ss ss ss ss ss ss 1253

Subtitle G – Energy and Environment

Sec. 21701. Authorization of appropriations.

U. S.-Mexico energy technology cooperation. (sec. 21702) 5.0 6.0 6.0 6.0 23.0 23.0 1414

Waste Reduction and Use of Alternatives (sec. 21703) 0.5 0.5 0.5 NE

Sec. 21707 Coal Technology Loan. 125.0 125.0 125.0 1237

Sec. 21708 Fuel cell test center. 0.5b 0.5 0.5 NE

Sec. 21709 Fuel cell transit bus demonstration. 10.0 10.0 10.0 10.0 40.0 40.0 NE

Sec. 21801 Availability of funds 1402

TITLE III – CLEAN SCHOOL BUSES

Sec. 23004 Authorization of appropriations 816

(a) School Bus Grants 90.0 100.0 110.0 300.0 300.0

Allocation:

Fuel cell bus development and demo. program (sec. 23002) a 25.0b 25.0 25.0

(b) Diesel Retrofit Grants (sec. 23003) ss ss ss ss ss ss ss ss

Division C – RESOURCES

TITLE I – INDIAN ENERGY

Sec. 30101 Indian energy. ss ss ss ss ss ss ss ss NE

TITLE II – OIL AND GAS

CRS-214


Sec. 30211 Preservation of geological and geophysical data. 30.0 30.0 30.0 30.0 30.0 150.0 150.0 NE

TITLE III – BIOMASS ENERGY

Sec. 30301 Grants to improve forest biomass value. 50.0 50.0 50.0 50.0 50.0 250.0 250.0 7 500.0 NE

TITLE IV – ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 30412 Local government impact aid & community service assistance. 5.0 5.0 5.0 5.0 5.0 25.0 25.0 50.0 NE

TITLE VIII – INSULAR AREAS ENERGY SECURITY

Sec. 30801 Insular areas energy security. 5.0 5.0 5.0 5.0 5.0 25.0 25.0 50.0 NE

Division E – CLEAN COAL

Sec. 50001 Clean Coal Power Initiative. 200.0 200.0 200.0 200.0 200.0 1,000.0 800.0 1,800.0 NE

Division F – HYDROGEN

Sec. 60008 Authorization of appropriations. 273.5 325.0 375.0 400.0 425.0 1,798.5 1,798.5 60008

Sec. 60009 Fuel Cell Program at National Parks. 2.0 2.0 2.0 2.0 2.0 10.0 4.0 14.0 NE

Sec. 60010 Advanced power system technology incentive program. 10.0 10.0 10.0 10.0 10.0 50.0 20.0 70.0 NE

Total Authorized Appropriations 13,858.4 11,749.7 12,597.7 9,062.7 1,071.7 47,470.2 1,234.0 48,704.2

Table Notes:

This table shows the authorizations of appropriations in H.R. 6, including loans but not loan guarantees.

ss. Such sums as may be necessary.

CRS-215

a. May not exceed amount specified.

b. Lump sum. No fiscal year indicated.

Endnotes:

1. SS for FY03 - FY23.

2. Funds go to the National Highway Traffic Safety Administration – Department of Transportation.

3. In most of Division B - Science - a single section number contains the total authorization for a title or subtitle as well as allocations of part of the total to one or moreprograms in that subtitle or title. The total amount is labeled as such with the allocations listed below in italics and enclosed in a box. The section number in parenthesisafter the program title or description refers to where it is described in the bill.

4. Revenues are generated annually for this section from federal oil and gas leases. Revenues fluctuate year-to-year as a result of oil and gas prices and lease sales.

5. Funds available for FY03-FY06.

6. Directs that funds come from the amount authorized in section 21601.

7. Plus $50 million for FY14.

CRS-216

Table 3. Authorizations in H.R. 6 as passed by the Senate.

ss = such sums as may be necessary

Senate in millions FY 02* FY 03* FY 04 FY 05 FY 06 FY 07 FY02-07 FY08-11 FY 02-11 House §

Division A Reliable and Diverse Power Generation and Transmission

TITLE II ELECTRICITY

Subtitle B Amendments to the Public Utility Holding Company Act

Sec. 237 Authorization of appropriations. ss ss ss 16055

Subtitle E Renewable Energy and Rural Construction Grants

Sec. 261 Renewable energy production incentive FY 03-23 ss ss ss ss ss ss ss ss 16072

Sec. 264 Rural construction grants 20.0 20.0 20.0 20.0 20.0 100.0 40.0 140.0 NE

TITLE IV INDIAN ENERGY

Sec. 403 Comprehensive Indian Energy Programs ss ss ss NE

Sec. 407 Federal PMA power delivery studies ss ss ss ss NE

Sec. 408 Feasibility study of wind & hydropower demonstration project 0.5 0.5 0.5 NE

TITLE V NUCLEAR POWER

Subtitle B Miscellaneous Provisions

Sec. 512 Thorium reimbursement 90.0 55.0 20.0 20.0 20.0 20.0 225.0 225.0 NE

Sec. 514 Nuclear Power 2010 ss ss ss 21411

Sec. 516 Decommissioning pilot program 16.0 16.0 16.0 NE

CRS-217


Subtitle C NRC Personnel Crisis

Sec. 542 NRC training program 1.0 1.0 1.0 1.0 4.0 4.0 NE

Subtotal Division A 90.5 92.0 41.0 41.0 41.0 40.0 345.5 40.0 385.5

Division B Domestic Oil and Gas Production and Transportation

TITLE VI OIL AND GAS PRODUCTION

Sec. 601 Strategic Petroleum Reserve ss ss ss 12103

Sec. 602 Federal onshore leasing programs for oil and gas 60.0 60.0 60.0 60.0 240.0 240.0 NE

Sec. 605 Orphaned and abandoned oil and gas well program 5.0 5.0 5.0 15.0 15.0 NE

Sec. 611 Authorization of Appropriations ss ss ss NE

TITLE VII NATURAL GAS PIPELINES

Subtitle C Pipeline Safety

Sec. 772 Authorization of Appropriations 64.0 64.0 64.0 6.0 6.0 204.0 0.0 204.0 NE

Subtotal Division B ss 65.0 65.0 65.0 60.0 0.0 255.0 0.0 255.0

Division C Diversifying Energy Demand and Improving Efficiency

TITLE VIII FUELS AND VEHICLES

Subtitle A CAFE Standards, Alternative Fuels & Advanced Technology

Sec. 803 Maximum feasible average fuel economy ss ss ss NE

Sec. 816 Authorization of appropriations. 50.0 60.0 70.0 80.0 260.0 260.0 23004

Sec. 820B Commercial by-products from municipal solid waste loanguarantee program

ss ss ss 17108

CRS-218


Subtitle B Additional Fuel Efficiency Measures

Sec. 823 Conserve by bicycling program 5.5 5.5 5.5 15051

Subtitle C Federal Reformulated Fuels

Sec. 832 Leaking underground storage tanks (LUST) 250.6 30.35 30.35 30.35 30.35 372.0 372.0 17201

Sec. 833 MTBE transition assistance 250.0 250.0 250.0 750.0 750.0 17103

Subtotal, Title VIII, Fuels and Vehicles ss 556.1 340.35 350.35 110.35 30.35 1,387.5 1,387.5

TITLE IX ENERGY EFFICIENCY AND ASSISTANCE TO LOWINCOME CONSUMERS

Subtitle A Low Income Assistance and State Energy Programs

Sec. 901 LIHEAP 3,400.0 3,400.0 3,400.0 10,200.0 10,200.0 11021

Weatherization assistance 325.0 400.0 500.0 1,225.0 1,225.0 11021

Sec. 902 State energy conservation grants 100.0 100.0 125.0 ss ss 325.0 ss 325.0 11022

Sec. 903 Energy efficient schools 200.0 210.0 220.0 230.0 ss 860.0 ss 860.0 11024

Sec. 904 Low income community energy efficiency pilot program 10.0 10.0 10.0 30.0 30.0 11025

Subtitle B Federal Energy Efficiency

Sec. 913 Federal building performance standards ss ss ss NE

Sec. 918 Federal energy banks 250.0 250.0 250.0 250.0 1,000.0 1,000.0 NE

Subtotal, Title IX, State Programs 4,285.0 4,370.0 4,505.0 480.0 0.0 13,640.0 ss 13,640.0

Subtotal Division C ss 4,841.1 4,710.4 4,855.4 590.4 30.4 15,027.5 ss 15,027.5

Division D Integration of Energy Policy and Climate Change Policy

CRS-219


Title X NATIONAL CLIMATE CHANGE POLICY

Subtitle B Climate Change Strategy

Sec. 1013 National climate change strategy ss ss ss NE

Sec. 1014 Office of National Climate Change Policy 5.0 5.0 5.0 5.0 5.0 25.0 20.0 45.0 NE

Sec. 1015 Office of Climate Change Technology 4,750.0 4,750.0 4,750.0 NE

Title XI NATIONAL GREENHOUSE GAS DATABASE

Sec. 1111 Authorization of appropriations ss ss ss NE

Subtotal Division D 4,755.0 5.0 5.0 5.0 5.0 4,775.0 20.0 4,795.0

Division E Enhancing Research, Development, and Training

TITLE XII ENERGY RESEARCH AND DEVELOPMENT PROGRAMS a

Subtitle A Energy Efficiency

Sec. 1211 Enhanced energy efficiency research and development 700.0 784.0 878.0 983.0 3,345.0 3,345.0 21101

Sec. 1213 Next generation lighting initiative 50.0 50.0 50.0 50.0 50.0 250.0 200.0 450.0 21111

Sec. 1214 Railroad efficiency 60.0 70.0 130.0 130.0 15041

Subtotal, Energy Efficiency 810.0 904.0 928.0 1,033.0 50.0 3,725.0 200.0 3,925.0

Subtitle B Renewable Energy

Sec. 1221 Enhanced renewable energy research and development 500.0 595.0 683.0 733.0 2,511.0 2,511.0 21301

Sec. 1222 Bioenergy (part of Sec. 1221 total) 21311

Biopower Energy Systems 60.3 69.3 79.6 86.3 295.5 295.5

Biofuels Energy Systems 57.5 66.1 76.0 81.4 281.0 281.0

Sec. 1223 Hydrogen R&D 60008

CRS-220


Matsunaga Hydrogen R&D and Demonstration program 65.0 70.0 75.0 80.0 290.0 290.0

Fuel Cells - Hydrogen Future Act 25.0 30.0 35.0 40.0 130.0 130.0

Subtotal, Renewable Energy 590.0 695.0 793.0 853.0 2,931.0 2,931.0

Subtitle C Fossil Energy

Sec. 1231 Enhanced fossil energy research and development 485.0 508.0 532.0 558.0 2,083.0 2,083.0 21511

Sec. 1232 Power plant improvement initiative 0.2 0.2 0.2 0.2 0.8 1.0 1.8 NE

Sec. 1233 R&D for advanced safe and efficient coal mining technologies 12.0 15.0 27.0 27.0 21512

Sec. 1235 R&D for new natural gas transportation technologies NE

Sec. 1236 Authorization of appropriations for Office of Arctic Energy 25.0 25.0 25.0 25.0 25.0 125.0 100.0 225.0 NE

Sec. 1237 Clean Coal Technology Loan 125.0 125.0 125.0 21707

Subtotal, Fossil Energy 647.2 548.2 557.2 583.2 25.0 2,235.8 101.0 2,336.8

Subtitle D Nuclear Energy

Sec. 1241 Enhanced nuclear energy research and development. 21401

Core nuclear research, university nuclear science 100.0 110.0 120.0 130.0 460.0 460.0

Nuclear research capacity and infrastructure 200.0 202.0 207.0 212.0 821.0 821.0

Subtotal, Nuclear Energy 300.0 312.0 327.0 342.0 1,281.0 1,281.0

Subtitle E Fundamental Energy Science

Sec. 1251 Enhanced programs in fundamental energy science. 3,785.0 4,153.0 4,586.0 5,000.0 17,524.0 17,524.0 21601

Sec. 1252 Nanoscale science and engineering research. 270.0 290.0 310.0 330.0 1,200.0 1,200.0 21633

Sec. 1253 Advanced scientific computing for energy missions. 285.0 300.0 310.0 320.0 1,215.0 1,215.0 21634

Sec. 1254 Fusion energy sciences program and planning. 335.0 349.0 362.0 377.0 1,423.0 1,423.0 21601

CRS-221


(Sec. 1301 & items above in italic are part of Sec. 1251 total)

Subtotal, Fundamental Energy Science 3,785.0 4,153.0 4,586.0 5,000.0 17,524.0 17,524.0

Subtitle F Energy, Safety, and Environmental Protection

Sec. 1261 Critical energy infrastructure protection R&D 10.0 10.0 10.0 10.0 40.0 40.0 NE

Sec. 1262 R&D for remediation of groundwater from energy activities. 25.0 26.0 27.0 28.0 106.0 106.0 NE

Subtotal, Energy, Safety, & Environmental Protection 35.0 36.0 37.0 38.0 146.0 146.0

Subtotal, Title XII, Energy R&D Programs 6,167.2 6,648.2 7,228.2 7,849.2 75.0 27,842.8 301.0 28,143.8

TITLE XIII CLIMATE CHANGE RESEARCH AND DEVELOPMENT a

Subtitle A Department of Energy Programs

Sec. 1301 DOE global change research (part of Sec. 1251 total) 150.0 175.0 200.0 230.0 755.0 755.0 NE

Subtitle B Department of Agriculture Programs

Sec. 1311 Carbon sequestration basic and applied research 25.0 25.0 25.0 25.0 100.0 100.0 NE

Sec. 1312 Carbon sequestration demonstration projects and outreach 10.0 10.0 10.0 10.0 40.0 40.0 NE

Sec. 1313 Carbon storage and sequestration accounting research 20.0 20.0 20.0 20.0 20.0 100.0 100.0 NE

Subtitle C International Energy Technology Transfer

Sec. 1321 Clean energy technology exports program ss ss ss NE

Sec. 1322 International energy technology deployment program 100.0 100.0 100.0 100.0 100.0 500.0 400.0 900.0 NE

Subtitle D Climate Change Science and Information

Part I Amendments to the Global Change Research Act of 1990

CRS-222


Sec. 1336 Research Grants 17.0 17.0 17.0 17.0 17.0 85.0 68.0 153.0 NE

Part II National Climate Services and Monitoring

Sec. 1344 Authorization of appropriations. 50.0 65.0 75.5 190.5 190.5 NE

Sec. 1346 International Pacific research and cooperation 3.5 3.5 3.5 NE

Sec. 1348 Arctic research and policy ss ss ss NE

Sec. 1349 Abrupt climate change research (ss for FY09 - FY11) 10.0 10.0 10.0 10.0 10.0 50.0 10.0 60.0 NE

Part III Ocean and Coastal Observing System

Sec. 1352 Authorization of appropriations 235.0 315.0 390.0 445.0 1,385.0 1,385.0 NE

Subtitle E Climate Change Technology

Sec. 1365 Authorization of Appropriations 10.0 10.0 10.0 10.0 10.0 50.0 50.0 NE

Subtitle F Climate Adaptation and Hazards Prevention

Part I Assessment and Adaptation

Sec. 1371 Regional climate assessment and adaptation program 4.5 4.5 4.5 NE

Sec. 1372 Coastal vulnerability and adaptation assessment grants 6.0 6.0 6.0 6.0 6.0 6.0 36.0 24.0 60.0 NE

Sec. 1373 Arctic research center 35.0 35.0 35.0 NE

PART II Forecasting and Planning Pilot Programs

Sec. 1383 Air quality research, forecasts, and warnings 8.0 3.0 3.0 3.0 17.0 17.0 NE

Sec. 1385 Authorization of appropriations 17.5 20.0 22.5 25.0 85.0 85.0 NE

Subtotal, Title XIII, Climate Change R&D 105.5 527.0 611.5 613.5 671.0 153.0 2,681.5 502.0 3,183.5

TITLE XIV MANAGEMENT OF DOE SCIENCE AND TECHNOLOGYPROGRAMS

CRS-223


Sec. 1402 Availability of funds. a 21801

Sec. 1408 Technology infrastructure program. 10.0 10.0 20.0 20.0 NE

Sec. 1414 United States - Mexico energy technology cooperation 5.0 6.0 6.0 6.0 23.0 23.0 21702

TITLE XV PERSONNEL AND TRAINING a

Sec. 1501 Workforce trends and traineeship grants. ss ss ss ss ss ss 21601

Sec. 1502 Postdoctoral & senior research fellowships in energyresearch.

ss ss ss ss ss ss 21601

Subtotal Division E 105.5 6,709.2 7,275.7 7,847.7 8,526.2 228.0 30,567.3 803.0 31,370.3

Division F Technology Assessment and Studies

TITLE XVI TECHNOLOGY ASSESSMENT

Sec. 1601 National Science and Technology Assessment Service. ss ss ss NE

DIVISION G Energy Infrastructure Security

TITLE XIII CRITICAL ENERGY INFRASTRUCTURE

Subtitle B Department of the Interior Programs

Sec. 1811 Outer Continental Shelf energy infrastructure security. 450.0 450.0 450.0 450.0 450.0 2,250.0 450.0 2,700.0 NE

Total Authorized Appropriations 196.0 16,912.3 12,547.1 13,264.1 9,672.6 753.4 53,220.3 1,313.0 54,533.3

NOTES:ss = such sums as may be necessaryNE = no equivalent provision*FY02 and FY03 columns include funds for other years when no year has been specified.

a Availability of Funds. Section 1402 says that appropriations authorized under certain titles shall remain available until expended. Those affected are titles XII (energy R&D),XIII (climate change R&D), and XV (traineeships and fellowships).

CRS-224

Index of Senate Non-Tax Sections

Senate sections which are in italics appear in this report just after, or in a few cases just before, thecorresponding House section. NE = no equivalent provision.

Senate House101, 102 16022

201 16042202 16101203 16091204 16091205 16021206 16031207 16081

208, 209 16031209 16084210 16013221 16041222 16042223 16043224 16044225 16045226 16046227 16047228 16048229 16049230 16050231 16051232 16052233 16053

234, 235 16056236 16054237 16055238 16056241 16061

242, 243 16061244 16062245 16071251 16081252 16093253 16094254 16094

255 - 259 16094261 13201261 16072262 16074263 11006264 16074

Senate House265 16073271 16074272 16013

301(a, b) 13001301(c) 13001

401 - 408 30101501 14001502 14002

502(a) 14002(a) 502(b) 14002(b) 502(c) 14002(c)

503 14004504 14005505 14006506 14007507 14015508 14008509 14009511 14030

512 - 513 14037514 21411515 21421516 14037521 14021

531 - 532 14037 541 - 542 14037

601 12103602 30203602 30206602 30207602 30208603 30209604 30210

605 - 608 30220607 21523609 12101610 12201

611 - 612 21613 611 - 612 21709

613 30220701 12001702 12002

Senate House703 12001

704(d) 12004704 12007705 12005706 12006707 12007708 12008709 12009710 12009711 12010712 12011713 12003714 12012715 12014721 60010

741 - 783 12404801 18001801 18001

802 - 804 18002805 15050806 15013806 15046807 15033807 23002808 15045809 23002810 15033810 23002811 18002812 15051813 17106814 23001815 23002816 23004

817, 818 15014819(q) 15011819(p) 15012819(r) 15012820(a) 17101820(e) 17102820A 15014820B 17108

CRS-225

Senate House821 11003822 15043823 15051824 60010832 17201

833(c)(6) 17103833 17103834 17104835 17104836 17105

837, 838 17107A839 17107840 17108901 11021902 11022903 11024904 11025905 11023911 11002912 11003913 11004914 11005915 11006

916 - 918 11006919 11001920 11010921 11007922 11045923 11043924 11044925 11046926 11041927 11046928 11045929 11042930 11047931 70001932 70002933 70003934 70004935 70005936 70006937 70006938 70007939 70008940 70009

941 - 950 110251001 - 1032 700091101 - 1111 70009 1201 - 1204 20001 1201 - 1204 21811

Senate House1211 211011212 211411213 211111214 150411215 211111216 216321221 213011222 21311

1223(a-b) 600011223(c) 600021223(d) 600031223(g) 600051223(h) 600081223(i) 60004

1223(i)(2)(202) 600041231 215111232 217041233 215121234 215211234 21522

1235, 1236 215121237 217071241 214011242 21431

1243 - 1245 214111251 216011252 216331253 216341254 216111254 216121261 160731262 124031262 21441

1301 - 1385 700091401 218011402 218011403 218021404 218031405 218041406 220021407 218051408 218051409 218061410 218061411 218071412 218081413 218081414 21702

1501, 1502 21636

1503 216361504 21121

Senate House1505 218131506 216361507 307081601 700091701 309091702 308011703 160121704 308011705 110251706 124041707 21441

1708, 1709 30909 1801 -1805 70009

1811 215121811 70009

2601 -2606 700092701 70009

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