DOMENICI PREDICTS SWIFT CONSIDERATION, PASSAGE OF BIPARTISAN ENERGY CONFERENCE REPORT

July 26, 2005
06:33 PM

Washington, D.C. - Senate Energy and Natural Resources Chairman Pete V. Domenici today began lining up votes on both sides of the aisle for the H.R. 6 conference report which will be signed and filed later today. The Senate is expected to pass the conference report later this week.

“I am proud of this conference report. I’m proud of the process we used to draft this report. The energy bill conference was as open and bipartisan as the Senate work on this bill has been. Chairmen and Ranking members of the House and Senate energy committees decided together what the base text would be. Conferees debated and voted on scores of amendments. Republican and Democrat alike successfully amended the conference text. From beginning to end, the conference was a thoroughly Democratic process. The resulting conference report reflects the will of the bipartisan, bicameral majority. It’s also sound policy. I anticipate strong, bipartisan support in the Senate.

“I am particularly proud of the conservation and efficiency measures in this bill. We do everything we could think of to diversify our energy supply and develop new energies that don’t rely on fossil fuels. We mandate more conservation and higher efficiency. We do more than Congress has ever done before to deploy new technologies and encourage efficiency and conservation.”

“A few months ago, the Alliance to Save Energy praised the efficiency provisions in the Senate bill, saying those provisions would shave between 10 and 40 percent off the anticipated growth of energy demand by 2015. Every one of those efficiency provisions is still in the bill. The American Council for an Energy Efficient Economy said the Senate bill’s conservation measures will save 50,000 MW of peak electricity demand by 2020. That’s the equivalent of 170 300-MW power plants. Every one of those conservation measures is still in the bill. This conference report is every bit as green as the Senate bill that helped form its foundation.” 

HIGHLIGHTS OF THE BIPARTISAN ENERGY BILL

The bipartisan Senate energy bill contains the following key provisions to increase production, increase conservation, diversify fuel supply and employ new technologies:

 
•  An ethanol mandate requiring fuel manufacturers to use 7.5 billion gallons of ethanol in gasoline by 2012 – a move that will reduce oil consumption by 80,000 barrels of oil a day by 2012, according to Energy Information Administration.

  •  An ambitious efficiency and conservation program that sets first-time efficiency standards for 14 large appliances and raises the efficiency standards for others. 

  
•  A strong federal program to design and deploy clean coal technologies so America can continue to use its 250-year supply of coal while protecting our air and water.  

 
•  Provisions to encourage the expansion and modernization of the electricity grid as well as new mandatory reliability rules designed to prevent future blackouts.
 
 
•  Provisions aimed at preventing manipulation of gas and electricity prices. The provisions authorize FERC to proscribe rules necessary to protect price transparency. FERC can establish an electronic reporting system if existing price reporting is not adequate.  

  •   An explicit prohibition on filing false information and a tougher ban on general manipulation as well as increased penalties for violating the Federal Power Act.  

  •   Protection for utility consumers in the Enron bankruptcy from unfair contract termination fees by authorizing FERC to determine those fees. 

  •   Provisions to ensure an adequate supply of natural gas in the coming years, including clarification of FERC’s exclusive authority to site LNG facilities. The bill further ensures supply by creating a clear process for siting natural gas infrastructure such as pipelines and storage. 

  •  A hydrogen research program in conjunction with federal labs, universities and auto manufacturers to design hydrogen cars.  

  •  Authorization of the construction of nuclear reactor at the DOE Idaho National Laboratory which will generate both electricity and hydrogen which could be used as fuel in the hydrogen economy.  

  •  A federal loan guarantee program to encourage the design and deployment of innovative technologies such as coal gasification and advanced nuclear power plants aimed at diversifying and increasing energy supply while protecting the environment. 

  •  A stand-by support program to ensure that consumers do not have to pay higher electricity bills because of unforeseen delays in the construction of new nuclear power plants due to bureaucratic red tape or litigation. The program insures the utilities for the cost of these delays.

  •   Reauthorization of Price-Anderson for 20 years which encourages expansion of existing or construction of new nuclear power plants. 

  •  Authority to the Nuclear Regulatory Commission to improve the already high-level security at nuclear power plants.  

  •  A Climate Technology program that directs the Secretary of Energy to lead an inter-agency process to develop and implement a national climate technology strategy. This provision also establishes an executive branch Climate Coordinating Committee and Climate Credit Board to assess, approve and fund these projects. Using greenhouse gas intensity as a measure of success, the bill creates incentives for innovative technologies and encourages partnership with other developing nations.  

  •   Provisions to streamline oil and gas development on existing federal lease sites to bring the fuels to market sooner.  

  •   Permanent authorization of the Strategic Petroleum Reserve. The bill also authorizes the DOE Secretary to fill the reserve to 1 billion barrels.  

  •  A DOI inventory of oil and gas resources on the Outer Continental Shelf to enable to the federal government to better assess the extent of these resources. 

  • Coastal impact assistance of $1 billion over four years to energy-producing states to assist in coastal enhancement and conservation programs.  

  •  Reformation of the hydropower licensing process in the Federal Power Act to achieve more reasonable mandatory conditions and ensures full third party participation.

 •  A legislative framework that empowers Indian tribes to develop energy resources on millions of acres of tribal lands – including oil, gas, clean coal, wind, solar, geothermal, biomass and hydropower– in environmentally responsible ways without unnecessary bureaucratic red tape. 

  • Creation of a competitive geothermal leasing program that allows the private sector – not just government geologists – to identify geothermal areas for leasing. The program is intended to bring geothermal energy to the market sooner. Geothermal heat is a completely clean and renewable energy source.  

  •  Incentives to counties to encourage geothermal development and by allowing them to keep a percentage of the royalties from that development.  

  •   Establishment of a task force to make recommendations on a national oil shale and tar sands leasing program.  The bill creates an oil shale R&D program. The bill also directs the DOI Secretary to conduct a commercial lease sale for oil shale in states where the Secretary finds support and interest for doing so. The U.S. Geological Survey estimates the United States has 2 trillion barrels of oil locked in oil shale, primarily in Colorado, Utah and Wyoming. The country has an additional 80 billion barrels of oil in tar sands, primarily in Utah.  

  •  Instructions to NHTSA to look for ways to improve Corporate Automobile Fuel Efficiency standards while taking into consideration the impact on automobile safety, jobs and the economy.

 •  Tougher requirements for federal alternative fuel fleets to ensure these vehicles actually use clean alternative fuels.  

  •  Creation of the joint flexible fuel hybrid vehicle commercialization initiative to improve technologies for the commercialization of hybrid/flexible fuel vehicles. The program is intended to reduce petroleum consumption by bringing new clean technologies to the market faster.  

  •  Creation of new programs to create railroad efficiency, aviation fuel conservation and emission reductions, reduce heavy engine idling times to reduce fuel consumption and pollution and to promote ultra-efficient energy technology for air crafts. 

  •  Authorization of appropriations to NHTSA to promote implementation and enforcement of fuel economy standards.