Under fire from Democrats for emphasizing production over conservation, the Republican-led House Energy and Commerce Subcommittee on Energy and Air Quality began work July 11on legislation billed as a conservation and energy efficiency package.
The latest draft does not include a provision for boosting corporate average fuel economy standards as incorporated into earlier drafts; bill sponsors removed that measure from the legislation as leaders from both parties seek to reach a deal before the bill reaches the full House later this month.
Language regarding reformulated gasoline was also trimmed back dramatically. For example, there is no specific mention of retooling oxygenate standards, which was present in earlier drafts. The bill does direct the US Environmental Protection Agency to reduce paperwork associated with RFG inventories. More language on the RFG issue, through either a committee markup or a floor amendment, is also anticipated.
This week the White House will hold a series of town meetings with the vice- president in an effort to educate the public "outside the Beltway" about the president's energy plan. They hope to deflect criticism that the plan relies too heavily on drilling and help for the oil industry.
The bill's major provisions call for revamping rules for nuclear and hydroelectric generation, beefing up research into clean coal technology, boosting federal government building efficiency standards, setting new efficiency standards for various products, and smoothing the transition to summer gasoline use.
Some of the provisions are taken from the Bush administration's proposed energy policy. Republican lawmakers hope to have an energy bill for the president to sign before Labor Day.
The bill would take the $10 billion Nuclear Waste Fund off the budget. The fund was set up as a separate account with a dedicated revenue source to establish a radioactive waste disposal site. However, site selection has been caught in nuclear energy politics, and no site has been selected. Meanwhile, onsite disposal facilities are filling up. If money is made available exclusively for disposing of radioactive waste, the US Department of Energy projects that the cash flow would be sufficient to pay for the program.
The bill also would start the 40-year operating clock for new nuclear reactors only when a plant actually begins to generate electricity. Currently, the law starts the clock when the combined construction and operating license is issued, which could be up to 5 years before operations even begin.
The bill would also allow the Nuclear Regulatory Commission to collect licensing fees from federal facilities. NRC administers 350 licenses at 25 federal agencies. If the bill is adopted, the agency could collect up to $4 million/year in fees from federal agencies it regulates.
With respect to hydropower, the bill allows alternative conditions to be set during the licensing process if environmental protection is maintained and when the impact on power generation and implementation costs can be lowered. The legislation also requires the Federal Energy Regulatory Commission to revise its data collection procedures for hydroelectric licensing.
DOE would be authorized to develop accelerated programs for the production and supply of electricity using clean coal methods and equipment. DOE could fund up to 50% of a project's cost, if it meets certain energy efficiency and environmental performance criteria.
The bill provides tax credits for emission reductions and efficiency improvements in existing coal-based generating facilities and allows tax credits for early commercial application and production from advanced clean coal technology programs.
The bill would establish new mandatory efficiency requirements for federal buildings, and it encourages the use of unconventional and renewable energy resources to achieve these targets. It requires all air conditioning and heat pump units acquired by the federal government after certain dates to meet efficiency standards equal to California's current standards.
It would establish a bank within the federal government providing low-interest loans to federal agencies to fund energy efficiency projects.
Representing a 70% increase over total Low Income Housing Energy Assistance Program funding appropriated for 2000, the bill authorizes $3.4 billion for fiscal years 2001-05 for assisting low-income consumers with payment of high energy bills. In addition, the legislation would require efficiency standards for televisions sets, furnace fans, ceiling fans, and cold drink vending machines.
