For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34135 ------------------------------------------------------------------------------ ¢ ¢ ¢ ¢ ¢ ¢ Prepared for Members and Committees of Congress ¢ ¢ ¢ ¢ In the first session of the 110th Congress, the House and the Senate passed two markedly different versions of omnibus energy efficiency and renewable energy legislation. This report compares major provisions in House-passed H.R. 3221 and Senate-passed H.R. 6. Key legislative challenges remain. First, there are significant differences between the two bills. Second, because the House and Senate have passed different measures, further action will be required in at least one chamber before a conference committee could be arranged. Third, concerns about certain oil and natural gas provisions, and the lack of measures to support increased oil and gas production, have led the Administration to threaten to veto each bill. Highlights of major provisions include: · Renewable Fuels Standard (RFS). The Senate bill would set a modified standard that starts at 8.5 billion gallons in 2008 and rises to 36 billion gallons by 2022. The House bill has no RFS provision. · Corporate Average Fuel Economy (CAFE). The Senate bill would set a target of 35 miles per gallon for the combined fleet of cars and light trucks by model year 2020. The House bill has no CAFE provision. · Renewable Energy Portfolio Standard (RPS). The House bill would set a minimum standard that would start at 2.75% in 2010 and rise steadily to a peak of 15% in 2020. The Senate bill has no RPS provision. · Offshore Oil and Gas Royalties. The House bill would establish royalties, or alternative payments, for certain federal leases established in 1998 and 1999. The Senate bill has no provision. · Repeal of Oil and Gas Tax Incentives. The House bill would obtain tax revenue offsets by reducing subsidies for oil and natural gas production. The Senate bill has no provision. · Renewable Energy Electricity Production Tax Credit (PTC). The House bill would extend the PTC for four years, and expand it to include some additional resources. The Senate bill has no provision. · Other Tax Incentives. The House bill would extend several investment tax credits covering solar energy and energy efficiency in residential and commercial sectors. The Senate bill has no provision. · Energy Efficiency Equipment Standards. Key differences involve standards for residential refrigerators, freezers, refrigerator-freezers, metal halide lamps, and commercial walk-in coolers and freezers. · Loan Guarantees. The House bill would give new loan authority to a wider variety of projects. The Senate bill would prevent appropriations acts from limiting the use of non-appropriated funds. ¢ ¢ ¢ Introduction ..................................................................................................................................... 1 Senate Action on H.R. 6 .................................................................................................................. 2 House Action on H.R. 3221............................................................................................................. 2 Challenges and Next Steps .............................................................................................................. 2 Informal House-Senate Negotiations .............................................................................................. 3 Comparing the House and Senate Bills ........................................................................................... 4 Table 1. List of Provisions............................................................................................................... 4 Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6 ................................ 6 ¡ Appendix A. House-Passed Version of H.R. 3221, Division A: "New Direction for Energy Independence, National Security, and Consumer Protection Act"................................. 20 Appendix B. Senate-Passed Version of H.R. 6: "Renewable Fuels, Consumer Protection, and Energy Efficiency Act"........................................................................................................ 35 Author Contact Information .......................................................................................................... 44 ¢ ¢ ¢ In the first session of the 110th Congress, the House and the Senate passed two markedly different versions of omnibus energy efficiency and renewable energy legislation. The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, passed the Senate on June 21, 2007. The key provisions of the Senate- passed H.R. 6 are appliance efficiency standards, an increase of the renewable fuel standard (RFS) to 36 billion gallons by 2022, and an increase of the combined corporate average fuel economy (CAFE) standards to 35 miles per gallon (mpg) by 2020. Tax provisions and a renewable energy portfolio standard (RPS) were not included. The House passed H.R. 3221 on August 4, 2007. H.R. 3221 has two divisions. Division A contains the New Direction for Energy Independence, National Security, and Consumer Protection Act, which has nine titles An adopted floor amendment (H.Amdt. 748) added a 15% renewable portfolio standard (RPS). Division B, the Renewable Energy and Energy Conservation Tax Act of 2007, contains the House-approved version of H.R. 2776. It adds four titles to H.R. 3221 that include a four-year extension of the renewable electricity production tax credit and other efficiency and renewables incentives. This report compares the major provisions of the House version of H.R. 3221, and the Senate version of H.R. 6. (For more details on the provisions in these two bills, see the appendices to this report. For more details on the legislation that led to the omnibus bills, see CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th Congress. For more details on the tax provisions, see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) The following analysts in the CRS Resources, Science, and Industry Division contributed to this report: · Amy Abel, transmission and electric utilities, 7-7239 · Robert Bamberger, fuel economy standards, 7-7240 · Lynne Corn, wildlife and habitats, 7-7267 · Susan Fletcher, international climate cooperation, 7-7231 · Peter Folger, carbon storage, 7-1517 · Mark Holt, loan guarantees, 7-1704 · Marc Humphries, oil and natural gas royalties, 7-7264 · Nic Lane, marine energy, 7-7905 · Salvatore Lazzari, energy taxes, 7-7825 · Robert Pirog, energy prices, 7-6847 · Randy Schnepf, agriculture-based energy, 7-4277 · Brent Yacobucci, biofuels, 7-9662 ¢ ¢ ¢ The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, was derived primarily from S. 1419, which, in turn, was composed from four major bills: the Energy Savings Act (S. 1321), the Public Buildings Cost Reduction Act (S. 992), the Ten-in-Ten Fuel Economy Act (S. 357), and the Energy Diplomacy and Security Act (S. 193). A summary of the Senate-passed version of H.R. 6 is presented in CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th Congress. That report also contains descriptions of all the bills that composed the Senate version of H.R. 6. An RPS amendment (S.Amdt. 1537) was introduced during Senate floor action on the proposed substitute (S.Amdt. 1502) to H.R. 6. The RPS amendment proposed setting a target of 15% by 2020. No action was taken on S.Amdt. 1537 before a successful cloture vote on the substitute. That cloture vote caused S.Amdt. 1537 to be ruled non-germane, and it fell from consideration. A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the proposed substitute to H.R. 6. The proposed tax package amendment included oil and natural gas revenue offset provisions, as well as incentives for renewable energy and energy efficiency. The proposed revenue offsets were similar to, but more extensive than, the offsets proposed in Title XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture motion to limit debate. (For more details, see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) H.R. 3221 has two divisions. Division A contains the New Direction for Energy Independence, National Security, and Consumer Protection Act, which has nine titles that represent the integration of H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R. 2635, H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2847, and a draft bill by the Committee on Energy and Commerce. Division B, the Renewable Energy and Energy Conservation Tax Act of 2007, contains the House-approved version of H.R. 2776, and adds four titles to H.R. 3221. A summary of the bill is presented in CRS Report RL33831, Energy Efficiency and Renewable Energy Legislation in the 110th Congress. That report also contains descriptions of all the bills that composed the House-passed version of H.R. 3221. ¡ One challenge involves key differences between the provisions of the two bills. There are several provisions where the two bills are very similar. One example is energy efficiency standards, where the House and Senate provisions have more similarities than differences. However, especially among the more controversial provisions, many either have major differences or the provision appears only in one bill. One key challenge will be to resolve such differences. A second challenge involves additional action that will be required to get a bill to conference committee. Because the House and Senate have passed different measures, constitutionally- required congressional procedures prevent the two bills (H.R. 3221 and H.R. 6) from going to conference in their current form. Further action will be needed on at least one of the two bills in at ¢ ¢ ¢ least one of the two chambers. For example, one option could be that the Senate takes up H.R. 3221, amends it however it wishes, and then pass the bill as the Senate version of H.R. 3221. Then, a conference could be held to resolve any remaining differences between the two versions of H.R. 3221.1 A third challenge involves opposition to the bills expressed by the Administration. In a June 12, 2007, Statement of Administration Policy on H.R. 6, the Administration expressed several points of opposition to the Senate bill.2 Its primary concerns involved issues related to oil and natural gas. The Administration stated that the bill "does nothing to increase domestic supplies of oil and natural gas." Moreover, it threatened to veto the bill if it retained a price gouging provision, which it feels would lead to problematic gasoline price controls. Another veto threat was focused on the proposal to subject foreign oil cartels to the jurisdiction of U.S. courts. Additional concerns were identified. One concern focused on the explicit 35 mpg fuel economy target in the CAFE provision and the proposal to set standards for medium- and heavy-duty trucks. For the RFS provision, the Administration strongly urged expansion to include fossil-based alternative fuels. Regarding loan guarantees, the Administration stated opposition to loosening of controls over program size and "special" treatment that would allow guarantees for biofuels projects to be increased to from 80% to cover up to 100% of project costs. In an August 3, 2007, Statement of Administration Policy on H.R. 2776 and H.R. 3221, the Administration expressed several points of opposition to the House bill.3 Its primary concerns were focused on oil and natural gas. It stated that because the two bills "would lead to less domestic oil and gas production, higher energy costs, and higher taxes, the President's senior advisors would recommend that he veto these bills." Other concerns included the proposed repeal of the manufacturing tax deduction for the oil and gas industry, the application of royalty requirements for certain offshore oil and gas leases issued in 1998 and 1999, increased authorization for clean renewable energy bonds, and expansion of the Davis-Bacon prevailing wage requirements. After the House completed action on H.R. 3221, informal bipartisan negotiations over the omnibus energy bills began between the House and Senate. Key issues seem to include the RPS provision (Title IX, Subtitle H) in the H.R. 3221, differences over proposals for increasing the renewable fuels standard (RFS), and a proposal to offset costs by repealing certain oil and natural gas subsidies. In November 2007, EIA issued a report on the impacts of the RPS and oil and gas provisions in H.R. 3221.4 On December 1, 2007, the Ranking Member of the Senate Committee on Energy and Natural Resources stated that the House Leadership's intent to include an RPS led 1 For more information about procedural requirements to bring a bill to conference, see CRS Report 96-708, Conference Committee and Related Procedures: An Introduction, by Elizabeth Rybicki. 2 Executive Office of the President. Office of Management and Budget. Statement of Administration Policy on H.R. 6. June 13, 2007. 3 p. 3 Executive Office of the President. Office of Management and Budget. Statement of Administration Policy on H.R. 2776 and H.R. 3221. August 3, 2007. 2 p. 4 EIA. Oil and Natural Gas Market Supply and Renewable Portfolio Standard Impacts of Selected Provisions of H.R. 3221. November 2007. 11 p. http://www.eia.doe.gov/oiaf/servicerpt/bmy/pdf/bmy.pdf. ¢ ¢ ¢ him to cease negotiations.5 Further, on December 3, 2007, the White House announced that it may veto the negotiated bill, if it includes an RPS, oil tax increases, and certain other provisions.6 On December 4, 2007, United Press International reported that, in a press conference, DOE Secretary Bodman warned against the inclusion of "a narrow, one-size-fits-all renewable portfolio standard," and said "taxes should not be raised or tax breaks reversed for the oil and gas sector."7 This report compares the major provisions of the House-passed version of H.R. 3221 and the Senate-passed version of H.R. 6. Table 1 shows a list of the major provisions that are reviewed in this report. Some provisions are contained wholly under one title or subtitle. For example, the RPS provision in the House bill is contained wholly under Subtitle H of Title IX. However, some provisions are scattered throughout several titles or subtitles. For example, in the House bill, the most extensive provision for loan guarantees is found in Title IX, Subtitle C, but additional provisions for loan guarantees appear under Titles IV (Subtitle E), V, IX (Subtitle A) and IX (Subtitle E). Similarly, Senate provisions for loan guarantees appear in both Title I (Subtitle B), and Title II (Subtitle C). snoisivorP fo tsiL .1 elbaT noisivorP yrogetaC noitacoL 1 dradnatS leuF elbaweneR noitaluger 6 egap 2 )EFAC( ymonocE leuF egarevA etaroproC noitaluger 7 egap 3 )SPR( dradnatS oiloftroP ygrenE elbaweneR noitaluger 7 egap 4 sesaeL saG dna liO erohsffO rednU seitlayoR noitaluger 8 egap 5 sevitnecnI xaT saG larutaN dna liO fo laepeR sevitnecni xat 8 egap 6 stiderC xaT noitcudorP ygrenE elbaweneR sevitnecni xat 9 egap 7 sevitnecnI xaT noitatropsnarT sevitnecni xat 9 egap 8 sevitnecnI xaT ycneiciffE ygrenE sevitnecni xat 01 egap 9 sdradnatS tnempiuqE - ycneiciffE ygrenE noitaluger 01 egap 01 seetnarauG naoL snaol 11 egap 11 laredeF - ycneiciffE ygrenE noitaluger 21 egap 21 lanoissergnoC - ycneiciffE ygrenE noitaluger 21 egap 31 noitatropsnarT elciheV - ycneiciffE ygrenE noitazirohtua 21 egap 41 erutcurtsarfnI leuF elbaweneR noitazirohtua 31 egap 5 The statement is available on the Committee's website, at http://energy.senate.gov/public/ index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=235405&Month=12&Year=2007. 6 The White House. Letter to House Speaker Nancy Pelosi from Allan B. Hubbard. December 3, 2007. 2 p.; also see E&E News PM. Energy Policy: White House Attacks Energy Bill Compromise. December 3, 2007. http://www.eenews.net/eenewspm/print/2007/12/03/1. 7 UPI. U.S. Energy Chief: Energy Bill Concerns. 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sesael sag dna lio wen rof elbigile eb ton dluow "sesael derevoc" gnidloh seesseL .sdlohserht ecirp tes ot )"sesael derevoc"( sdlohserht ecirp tuohtiw 9991 dna 8991 ni dehsilbatse sesael niatrec yfidom ot tseuqer s'eessel a tpecca roiretnI eht .noisivorp etaneS oN .noisivorp oN fo yraterceS eht taht eriuqer dluow ,E eltitbuS ,IIV eltiT sesaeL saG dna liO erohsffO rednU seitlayoR secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .serusaem noitalusni kcurt niatrec dna stinu noitcuder gnildi .selcihev tneiciffe leuf rof elbaliava sevitnecni ekam dna rof dehsilbatse neeb evah dluow xat kcurt yvaeh morf srelzzug sag rof elohpool a esolc ot selur gnisnepxe dna noisulcxe nA .sraey 2 rof dednetxe neeb evah dluow noitaicerped yfidom dna ,sretummoc elcycib rof tifeneb .4071 .tdmA.S egnirf a etaerc ,tiderc xat snoitats gnileufer evitanretla ni ton erew taht sevitnecni emos sedivorp 1223 .R.H selcihev deleuf-evitanretla rof tiderc ehT .thgiew elcihev no gnidneped ,000,51$ ot 005,7$ ta deppac ,sdirbyh eht esaercni ,sraey owt rof tiderc xat noitcudorp .sdirbyh ni-gulp rof tiderc regnorts a dah 4071 .tdmA.S ni-gulp rof tiderc a detaerc evah dluow 4071 .tdmA.S leseidoib eht dnetxe ,leuf lonahte cisolullec rof tiderc xat noitcudorp nollag rep tnec 05 a hsilbatse ,selcihev dirbyh .snoisivorp etaneS oN .snoisivorp oN ni-gulp rof tiderc 000,4$ a tes dluow ,A eltitbuS ,IIX eltiT noitatropsnarT ni ycneiciffE ygrenE rof sevitnecnI xaT .tiderc semoh wen eht dednetxe evah dluow )V traP( 4071 .tdmA.S .sraey 3 rof tiderc semoh tneiciffe-ygrene .tnempiuqe dniw laitnediser wen eht dednetxe evah dluow )V traP( 4071 .tdmA.S rof tiderc a detaerc evah dluow 4071 .tdmA.S .dehsilbatse neeb evah dluow noissimsnart .CTI laitnediser cirtcele rof sevitnecni owT .tnempiuqe dniw laitnediser eht no pac eht desiar evah dluow 4071 .tdmA.S rof detaerc neeb evah dluow tiderc wen A .tnempiuqe llec leuf dna ralos laitnediser rof tiderc xat eht no pac .CTI laitnediser eht no pac eht evomer dluow 1223 .R.H eht desiar dna ,sBERC fo noillib 6.3$ dezirohtua evah .tnempiuqe dluow tI .noisulcxe ytilitu cilbup eht delaeper dna sraey llec leuf dna ralos laitnediser rof tiderc xat tnemtsevni eht .seitilitu no pac eht evomer dna ,)sBERC( sdnob ygrene elbawener ot CTI ssenisub eht dednapxe evah dluow ti dna 8 rof tnempiuqe llec leuf dna ralos rof tiderc xat ygrene ssenisub %03 eht dednetxe evah dluow ti ,oslA .ygrene naelc fo noillib 2$ ezirohtua ,sraey 8 rof tnempiuqe ,sBERC rof erom noillib 6.1$ desoporp 4071 .tdmA.S llec leuf dna ralos rof )CTI( tiderc xat tnemtsevni ygrene )tnerruc dna ,edit ,evaw( citenikordyh dna lamreht .llib esuoH eht naht naeco edulcni ot ti dednapxe dna sraey 5 rof CTP eht ssenisub %03 eht dnetxe dluow ti ,oslA .ygrene )tnerruc noisnetxe CTP regnol raey-1 a desoporp 4071 .tdmA.S dednetxe evah dluow )I traP( 4071 .tdmA.S ,revewoH dna ,edit ,evaw( citenikordyh dna lamreht naeco edulcni ot ti dnapxe dna sraey 4 rof )CTP( tiderc xat noitcudorp :tub ,snoisivorp etaneS oN .6 .R.H ni snoisivorp oN yticirtcele elbawener eht dnetxe dluow IX eltiT noitcudorP ygrenE elbaweneR rof sevitnecnI xaT .etar "egaw gniliaverp" eht ta diap eb scinahcem dna srerobal lla ,skcart daorliar thgierf etatilibaher ot margorp tnarg latipac a rof ,taht eriuqer dluow B eltitbuS .roolf etaneS eht no 6 .R.H ot dedda eb ot deliaf hcihw ,4071 .sleufoib fo yduts evisneherpmoc a rof dna edoc xat SRI .snoisivorp etaneS oN .tdmA.S ni ron ,llib etaneS ni snoisivorp elbarapmoc oN eht fo tidua nobrac a rof llac dluow ,A eltitbuS ,VIX eltiT .tiderc xat leseid elbawener .noisivorp etaneS oN .noisivorp oN eht rof ytilibigile yfiralc dluow B eltitbuS ,IIIX eltiT .sraey 01 revo noillib 11$ tuoba yb yrusaerT .S.U eht ot eunever esaercni dluow secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .seirtsudni evisnetni-ygrene dna gnirutcafunam .ssecorp gnikamelur .spmal edilah latem niatrec rof sdradnats etalsigel slairetam ni ycneiciffe ygrene evorpmi ot seigolonhcet EOD eht etidepxe ot edam eb dluow segnahc larudecorp osla dluow llib esuoH ehT .spmal rotcelfer tnecsednacni wen fo esu eht rof margorp a hsilbatse ot detcerid lareves ,oslA .noitalsigel yb tes eb dluow srezeerf rof sdradnats lacitnedi etalsigel dluow sllib htoB eb dluow EOD ,oslA .stcudorp cinortcele remusnoc ni-klaw dna srelooc ni-klaw rof serusaem ycneiciffe fo sepyt lareves rof slebal ediuG ygrenE eriuqer ygrene niatreC .sregrahc yrettab rof sdradnats ycneiciffe .srezeerf dna srelooc dna ,sdradnats etats fo noitpmeerp laredef ot stimil stes taht elur lanif a eussi ot detcerid eb dluow EOD .esu ni-klaw rof serusaem ycneiciffe niatrec etalsigel dluow yfiralc ,sgnikamelur etidepxe dluow snoisivorp rehtO rewop ybdnats timil taht secived esahcrup ot detcerid eb llib esuoH ehT .snaf ecanruf rof elur yb sdradnats tes ot .stcudorp remusnoc ycneiciffe-hgih fo erutcafunam dluow seicnega laredeF .3102 yb snaf ecanruf rof ssecorp EOD tcerid dluow sllib htoB .srezeerf-rotaregirfer dna eht rof sevitnecni edivorp dluow eltitbuS siht ,rehtruF gnikamelur a etelpmoc ot deriuqer eb dluow EOD ,srezeerf ,srotaregirfer rof elur yb sdradnats tes ot EOD .tnempiuqe gnilooc dna gnitaeh rof sdradnats lanoiger .tnempiuqe gninoitidnoc ria dna gnitaeh rof sdradnats tcerid dluow llib etaneS ehT .srezeerf-rotaregirfer dna dna stnenopmoc elpitlum rof sdradnats tes ot dewolla ni snoitairav lanoiger hsilbatse ot dewolla eb dluow EOD ,srezeerf ,srotaregirfer rof sdradnats etalsigel osla dluow eb dluow EOD ,oslA .snaf ecanruf rof gnikamelur .sreliob laitnediser dna ,srotom cirtcele ,srezeerf ,srezeerf llib esuoH ehT .sreliob laitnediser dna ,srotom cirtcele yb sdradnats tes ot detcerid eb dluow EOD .secnailppa -rotaregirfer ,srotaregirfer ,sreifidimuhed ,srehsawhsid ,sreifidimuhed ,srehsawhsid ,srehsaw sehtolc laitnediser emoh emos dna ,srotom cirtcele ,sreliob laitnediser rof ,srehsaw sehtolc laitnediser rof sdradnats ycneiciffe rof sdradnats lacitnedi etalsigel dluow sllib htoB sdradnats wen ,etutats yb ,tes dluow ,B eltitbuS ,II eltiT wen ,etutats yb ,tes dluow ,1 traP ,A eltitbuS ,XI eltiT sdradnatS tnempiuqE - ycneiciffE ygrenE .sretem cirtcele trams rof doirep noitaicerped raey-evif a fo tnemhsilbatse eht dna ,tiderc ecnailppa eht fo noitacifidom dna noisnetxe na ,sgnidliub laicremmoc rof noitcuded xat eht fo noisnetxe raey-5 a edivorp dluow B eltitbuS ,oslA .sesoprup laitnediser emocni-wol ot deilppa eb tsum eussi dnob hcae morf sdeecorp tcejorp eht fo %02 tsael tA .esu ygrene ni snoitcuder detegrat niatrec dna ,tnempiuqe ygrene .secived tnemeganam ygrene edulcni ot doirep elbawener ,tnempiuqe ratS ygrenE troppus dluoc dnob noitaicerped raey-7 eht dednapxe evah dluow I traP ehT .noillib 4.2$ ot detimil eb dluow ytirohtua dnob latoT .tnempiuqe )PHC( rewop .tnempiuqe laitnediser dna stnemevorpmi emoh rof stnarg dna taeh denibmoc niatrec fo noitallatsni laicremmoc dna snaol edivorp ot setats rof dnob tiderc xat ecnatsissa rof detaerc neeb evah dluow tiderc A .sraey 2 rof tiderc ycneiciffe ygrene na etaerc dluow 21021 noitceS .tiderc PHC laicremmoc wen a dehsilbatse evah dluow tiforter ycneiciffe emoh gnitsixe eht dna sraey 3 rof .noillib 6.3$ ot detimil ti ,oslA .1223 .R.H ni dedulcni ton era taht stiderc tiderc emoh wen eht dednetxe evah dluow V traP ,oslA eb dluow ytirohtua dnob )lanoitan( latoT .snoitartsnomed xat emoh owt dednetxe evah dluow 4071 .tdmA.S ygolonhcet dna ,selcihev dna seitilicaf tisnart .tiderc ecnailppa emoh eht dednapxe dna .smargorp lacol dna etats rof snoisivorp dednetxe dna ,sraey 5 rof noitcuded gnidliub laicremmoc ssam ,D&R troppus ,saera larur ni selbawener etomorp dnob tiderc xat wen owt hsilbatse dluow 1223 .R.H eht dednetxe evah dluow ,V traP ,4071 .tdmA.S ,sgnidliub cilbup ni esu ygrene ecuder ot stnemnrevog lacol dna etats rof dnob tiderc xat noitavresnoc ygrene .snoisivorp etaneS oN .snoisivorp oN na etaerc dluow ,11021 noitceS ,B eltitbuS ,IIX eltiT serusaeM ycneiciffE ygrenE rehtO rof sevitnecnI xaT secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .)2509 .ceS( stiforter gnidliub neerg .llib etaneS eht naht stcejorp fo yteirav rediw a dna ,)1049 .ceS( seitilicaf gnirutcafunam yrettab decnavda rof ytirohtua eetnaraug naol wen sehsilbatse llib esuoH ,)1048 .ceS( noitatropsnart aes trohs rof slessev ,)6005 ehT .)stnalp raelcun sedulcxe )1462 .R.H( 8002YF .ceS( smetsys ygrene elbawener larur ,)3005 .ceS( stnalp rof lliB snoitairporppA tnempoleveD retaW dna ygrenE leufoib rof dehsilbatse eb dluow ytirohtua eetnaraug dessap-esuoH eht( seirogetac tcejorp yna gnidulcxe naol weN .50TCAPE rednu seetnaraug naol rof elbigile morf stca snoitairporppa gnitibihorp yb rewop raelcun .)242 .ceS( strap ro selcihev tneiciffe esiwrehto stcejorp fo yrogetac yna edulcxe ton dluoc sllib pleh dluow llib esuoH ehT .stcejorp ygrene decnavda leuf rof seitilicaf noitcudorp dna )421 .ceS( seitilicaf leuf snoitairporppa ,noitidda nI .tcA nocaB-sivaD eht rednu rehto naht evisnepxe erom raf eb ot dnet hcihw ,stnalp elbawener ot dednetxe eb dluow ytirohtua eetnaraug segaw gniliaverp diap eb tsum stcejorp hcus no srekrow rewop raelcun rof tnatropmi deredisnoc si noisivorp naoL .desu era sdnuf detairporppa-non nehw stca taht dna ,tbed tcejorp fo %001 naht ssel ot seetnaraug sihT .)50TCAPE yb dezirohtua sa ,srosnops tcejorp snoitairporppa yb dehsilbatse stimil launna ot tcejbus gnitimil snoitaluger hsilbatse ton yam EOD taht ,)stsoc yb dedivorp sdnuf gnisu( sdnuf detairporppa-non gnisu ton si margorp eetnaraug naol eht taht dna deetnaraug tcejorp fo %08 ot pu( tcejorp a rof gnicnanif erusne seetnaraug naol ot ylppa ton dluow stca snoitairporppa eb yam tbed s'tcejorp a fo %001 ot pu taht yficeps ot hguone egral eb tsum seetnaraug naol taht yficeps ni stimil launna taht seificeps llib etaneS ehT ot IIVX eltiT 50TCAPE dnema dluow )421 .ceS( I eltiT ot IIVX eltiT 50TCAPE dnema dluow ,C eltitbuS ,XI eltiT seitilicaF ygrenE rof seetnarauG naoL .stcudorp gnithgil rof .sttaw 005 dna sttaw stegrat ecnamrofrep ycneiciffe ygrene yrotadnam ssap ot 051 neewteb detar spmal htiw detarepo eb ot dengised "etaneS eht fo esneS" a gnihsilbatse dna ,stnempoleved serutxif pmal edilah latem rof noitalsigel yb tes eb dluow gnithgil )DEL( etats dilos rof sezirp gnithgil "worromoT sdradnats ycneiciffe ygrenE .seno tneiciffe erom htiw thgirB" eht gnitaerc ,spmal rotcelfer tnecsednacni sthgil tnecsednacni ecalper ot seicnega laredef eriuqer rof sdradnats ycneiciffe gnidnapxe ,0102 yb detar ratS dna ,spmal rotcelfer tnecsednacni rof dradnats a tes ygrenE eb ot gnithgil laredef lla eriuqer dluow A eltitbuS ,ycneiciffe gnithgil rof tegrat yrotadnam a tes dluow 2 traP secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH elcihev dirbyh dna krow ygolonhcet decnavda troppus eb dluow margorp eetnaraug naol A .slairetam thgiew .tsoc margorp ro tcejorp fo %001 ot ot stnarg dna seetnaraug naol edivorp dluow llib -thgil no margorp D&R na dnuf ot dezirohtua eb dluow pu desaercni eb dluow stcejorp )QAMC( ytilauq ria dna esuoH ehT .smargorp tnarg hsilbatse dluow sllib htoB EOD .egarots ygrene dna ,seirettab decnavda ,selcihev noitagitim noitsegnoc rof erahs laredef ehT .syawhgih dia .snaem dna sucof ni reffid tub ,smia ralimis evah sllib ehT ycneiciffe-hgih etomorp dluow ,C eltitbuS ,II eltiT -laredef rof troppus sedivorp ,2 traP ,B eltitbuS ,IIIV eltiT noitatropsnarT elciheV - ycneiciffE ygrenE .tnempiuqe ciatlovotohp ralos dna leuf 58E fo esu eht egaruocne dna ,nalP retsaM xelpmoC lotipaC eht ni serusaem ycneiciffe ygrene edulcni ,ronam tneiciffe-ygrene na ni tnalP rewoP lotipaC eht etarepo ot lotipaC eht .noisivorp etaneS oN .noisivorp oN fo tcetihcrA eht tcerid dluow ,3 traP ,F eltitbuS ,IIIV eltiT lanoissergnoC - ycneiciffE ygrenE .sgnidliub tneiciffe-ygrene ot nevig eb dluow ecnereferp ,gnisael nI .ngised neerg yolpme sgnidliub fo snoitavoner rojam dna ,noitcurtsnoc ,noitisiuqca taht eriuqer ot yciloP tnemerucorP laredeF fo eciffO eht tcerid dluow 6409 noitceS .sgnivas tsoc fo noitneter ycnega edulcni dluoW .seicnega laredef rof sevitnecni dna ,secitcarp ,sdradnats yfitnedi dluow .stnemeriuqer taht sgnidliuB neerG ecnamrofreP-hgiH laredeF fo eciffO tnemerucorp lacitnedi tes dluow 254 noitceS na hsilbatse ot ASG tcerid dluow ,2409 noitceS ,XI eltiT .sgnidliub neerg laredef rof snoisivorp lacitnedi .sretrauqdaeh EOD ta metsys ciatlovotohp ralos a llatsni yllautriv hsilbatse dluow ,234 noitceS ,C eltitbuS ,VI eltiT ot ASG tcerid dluow ti ,oslA .sgnidliub drauG tsaoC rof sthgil tnecsednacni gnisahcrup morf )ASG( noitartsinimdA .sretrauqdaeh secivreS lareneG eht tibihorp dluow ,F eltitbuS ,IIIV eltiT EOD ta metsys ciatlovotohp ralos a llatsni ot ASG tcerid dluow B eltitbuS .sthgil tneiciffe fo esu ycnega laredef .sleuf muelortep lanoitnevnoc .sblub thgil rof esoht deecxe snoissime )GHG( sag esuohneerg rof tnemeriuqer redaorb a tes dluow llib etaneS ehT etarelecca ot ASG tcerid dluow ,A eltitbuS ,VI eltiT fi derucorp eb ton dluoc sleuf evitaretlA .seicnega laredef .gnikamelur EOD a htiw .%05 yb esu ygrene lissof ecuder ot deriuqer ta ycilop )emoh morf krow( krowelet a etaerc dluow noitcuder siht evird dluow llib esuoH ehT .sgnidliub eb dluow sgnidliub laredeF .5102 yb %03 esu ygrene C eltitbuS .0302 yb )snoissime orez( %001 ot ylidaets laredef ni esu leuf lissof gnicuder rof slaog tes sllib htoB ecuder ot deriuqer eb dluow sgnidliub laredeF .)sCPSE( gnicuder ,0102 ni %55 yb esu leuf lissof fo erahs eht stcartnoC ecnamrofreP gnivaS-ygrenE esu ot ytirohtua ecuder ot evah dluow sgnidliub derevoC .esu lio ecuder .steelf etats tnenamrep evah dluow seicnega laredeF .5102 yb %51 ot sgnidliub laredef rof sdradnats ecnamrofrep ygrene yb esu ecuder ot laog a tes osla dluow llib etaneS ehT ot esaercni dluow sesahcrup ygrene laredef fo erahs esiver ot detcerid eb dluow EOD .stcudorp tneiciffe .sehcaorppa tnereffid gnisu yb tub ,steelf elcihev laredef ygrene elbawener ehT .6102 yb %03 esu lio ecuder ot -ygrene erucorp ot dna selcihev "nobrac wol" esahcrup ni esu leuf lissof ecuder ot laog a tes dluow sllib htoB steelf etats dna laredef eriuqer dluow ,E eltitbuS ,II eltiT ot seicnega laredef eriuqer dluow ,B eltitbuS ,IV eltiT laredeF - ycneiciffE ygrenE secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .snoissime sag esuohneerg dna ,noitullop ria ,esion tropria ecuder ot margorp tnarg a hsilbatse dluow E eltitbuS .margorp noitatropsnart emitiram aes trohs a etaerc dluow D eltitbuS .kcart daorliar evorpmi nac taht stnarg dna sevitomocol dirbyh yub sreirrac liar pleh nac taht .snoisivorp etaneS oN .snoisivorp oN stnarg hsilbatse ot TOD tcerid dluow ,B eltitbuS ,IIIV eltiT noitatropsnarT riA dna ,aeS ,liaR .dradnats ytilauq leuf leseidoib a dna ,)5( sretnec hcraeser ygreneoib ,D&R rof gnidnuf ezirohtua dluow snoisivorp rehtO .dradnats ytilauq leuf leseidoib a dna ,tnemeriuqer gnilebal leuf .seitilicaf noitcudorp lonahte cisolullec a ,noitatropsnart ssamoib ,setar noitcudorp lonahte wol rof snoitacol dna skcotsdeef yfisrevid ot stnarg rof htiw setats ot stnarg ,)11( sretnec hcraeser ygreneoib troppus gnidnuf EOD ezirohtua dluow )8039§( XI eltiT ,D&R rof gnidnuf ezirohtua dluow snoisivorp rehtO .tnempoleved erutcurtsarfni fo stcepsa rehto .saera desrepsid-yllacihpargoeg 01 ni troppus dluow )D-XI eltiT ,3044§( snoisivorp lanoitiddA srodirroc dna erutcurtsarfni gnileuf elbawener rof stnarg .erutcurtsarfni gnileuf elbawener rof stnarg ekam .ton dluow llib esuoH eht dna ,tnemeriuqer gnilebal ekam ot EOD rof gnidnuf ezirohtua dluow )121§( I eltiT ot EOD rof gnidnuf ezirohtua dluow )1039§( VI eltiT leuf a etaerc dluow llib etaneS ehT .ton dluow llib esuoH eht tub ,setar noitcudorp lonahte wol htiw setats .senilepip lonahte detacided gnitcurtsnoc fo .senilepip lonahte detacided gnitcurtsnoc fo ot stnarg rof gnidnuf ezirohtua dluow llib etaneS ehT ytilibisaef eht yduts ot EOD tcerid dluow )341§( I eltiT ytilibisaef eht yduts ot EOD tcerid dluow )4039§( XI eltiT .ton dluow llib .stnalp tolip )ygolonhcet wen( leufoib decnavda .stnalp noitcudorp leufoib dna seireniferoib etaneS eht tub ,noitcudorp lonahte cisolullec troppus rof tsoc tcejorp fo )lapicnirp ni noillim 052$( %001 rof tsoc tcejorp fo )lapicnirp ni noillim 052$( %09 ot stnarg rof gnidnuf ezirohtua dluow llib esuoH ehT ot pu rof seetnaraug naol edivorp dluow )421§( I eltiT ot pu rof seetnaraug naol edivorp dluow )3005§( V eltiT erutcurtsarfnI dna ylppuS leuF elbaweneR .rotces noitatropsnart eht ni sgnivas lio mret-raen eveihca dluow taht seigolonhcet yolped ot margorp a hsilbatse ot deriuqer eb osla dluow EOD .selcihev evird cirtcele etartsnomed ot seititne tnemnrevog lacol dna ,lanoiger ,etats rof margorp tnarg evititepmoc a hsilbatse ot detcerid eb dluow EOD .seigolonhcet evird cirtcele rof dezirohtua eb dluow margorp D&R raey-evif a dna ,stekram egarots ygrene labolg ni ssenevititepmoc .selcihev .S.U troppus ot dezirohtua eb dluow margorp .selcihev cirtcele suoirav tneiciffe-leuf erutcafunam taht seitilicaf gnittiforter D&R raey-01 A .selcihev ygolonhcet decnavda ecudorp rof stiderc dna ,steelf rof sdirbyh ytud yvaeh gnisahcrup ro gnitcurtsnoc rof seetnaraug naol gnidulcni ,epocs taht seitilicaf gnirutcafunam hsibrufer ot dezirohtua eb rof sevitnecni ,selcihev dirbyh ni-gulp rof smargorp redaorb a sah llib etaneS ehT .seetnaraug naol no ssel dluow stnemtsevni deifilauq rof sdrawa gnidnuF .selcihev tnarg ,tnempoleved yrettab decnavda rof margorp dna D&R no erom yler dluow llib etaneS ehT .sesahcrup tneiciffe-leuf erutcafunam taht seitilicaf rof detaerc eetnaraug naol a hsilbatse dluow E eltitbuS ,XI eltiT secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .swal tsurtitna rednu truoc tcirtsid yna ni noitca gnirb ot lareneG yenrottA .S.U eht wolla dluow dna ,noitibihorp eht fo noitaloiv ni etats yna fo ytinummi ngierevos eht yned dluow tI .setatS detinU eht ni stcudorp muelortep fo ecirp eht ecneulfni ot sag larutan dna lio fo noitcudorp timil ot setats fo puorg ro etats ngierof yna rof lagelli ti ekam dluow hcihw ,tcA )CEPON( sletraC gnitropxE dna gnicudorP liO oN" eht sesoporp 017 noitceS .tnempoleved dna ytilibaniatsus ygrene no sevitaitini tnemelpmi ot degaruocne eb dluow taht ",muroF noitarepooC ygrenE erehpsimeH" a hsilbatse dluow llib eht ,oslA .puorG yrtsudnI ygrenE erehpsimeH a dna ,muroF noitarepooC ygrenE erehpsimeH lairetsinim a ,msinahcem esnopser sisirc ygrene erehpsimeH nretseW a )3( dna ;aidnI dna anihC htiw msinahcem esnopser sisirc muelortep a )2( ;stnemnrevog rehto dna ,sremusnoc dna srecudorp ygrene rojam fo stnemnrevog eht htiw spihsrentrap ygrene cigetarts )1( hsilbatse ot degaruocne eb dluow etatS fo tnemtrapeD .8323 .R.H fo esoht ot eht ,siht troppus oT .secruos ygrene elbaniatsus fo esu lacitnedi era eltitbuS siht fo snoisivorp ehT .noitarepooc .learsI htiw noitarepooc desaercni gnizisahpme ,noitarepooc ygrene lanoitanretni ygrene learsI-.S.U rof draob yrosivda dna margorp ygrene sesserdda ylno noisivorp esuoH ehT no ssergnoC fo esnes eht sserpxe dluow IIV eltiT tnarg a hsilbatse dluow ,2 traP ,D eltitbuS ,XI eltiT noitarepooC ygrenE lanoitanretnI secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .setatS detinU eht fo yticapac egarots 2OC eht ,fo tnemssessa na tcudnoc dna ,rof ygolodohtem a poleved dluow taht yevruS lacigoloeG .S.U eht yb detcudnoc eb ot )IOD( roiretnI eht fo tnemtrapeD eht ni margorp a hsilbatse dluow ,D eltitbuS ,IIV eltiT .dehsilbatse eb dluow ecneics noitartseuqes lacigoloeg ni seerged etaudarg rof margorp tnarg A .noitartseuqes dna erutpac htiw detaicossa ).regloF reteP ytefas dna htlaeh cilbup ,tnemnorivne eht no egarots 2OC fo stcapmi laitnetop ssessa ot margorp hcraeser a yb , )SCC( noitartseuqeS dna erutpaC nobraC ,10833LR tropeR SRCees cipot siht no noitamrofni erom roF( tcudnoc dluow APE .smargorp erutpac dna noitartseuqes elacs-egral eht weiver dluow )SAN( secneicS .llib etaneS eht naht fo ymedacA lanoitaN eht ,1102 ni gninnigeB .2OC smargorp rof snoitairporppa fo level rehgih a sezirohtua .yticapac egarots fo secruos lairtsudni morf stset noitartsnomed erutpac llib esuoH eht fo VI eltiT .tnemnorivne eht dna ytefas )2OC( edixoid nobrac lanoitan eht ssessa ot dehsilbatse nobrac elacs-egral 3 tsael ta tcudnoc dluow dna ,secruos dna htlaeh cilbup no noitartseuqes dna erutpac 2OC eb dluow margorp roiretnI eht fo tnemtrapeD gnitareneg-yticirtcele ro lairtsudni egral morf )2OC( fo stcapmi ssessa APE taht eriuqer ton seod llib etaneS a ,oslA .stcejorp noitartsnomed erutpac nobrac edixoid nobrac gnisu ylbareferp ,stset noitartseuqes eht ,oslA .ecneics noitartseuqes lacigoloeg rof margorp dna egarots nobrac edulcni ot dednapxe eb dluow emulov-egral laitini 7 tcudnoc dluow EOD .noitartsnomed tnarg desab-ytisrevinu a hsilbatse ron ,smargorp EOD margorp EOD ehT .1223 .R.H fo ,D eltitbuS ,IIV eltiT dna egarots nobrac rof D&R edulcni ot erutpac nobrac eht fo weiver SAN na edulcni ton seod llib etaneS ehT dna ,F eltitbuS ,VI eltiT ot ralimis si 6 .R.H fo III eltiT rof margorp EOD eht dnapxe dluow ,F eltitbuS ,VI eltiT egarotS nobraC .ycilop egnahc etamilc no etatS fo yraterceS dna tnediserP eht ot resivda lapicnirp a sa evres dna sGHG fo snoissime gnicuder gninrecnoc slaog .S.U ecnavda dluow ohw egraL-ta-rodassabmA na yb dedaeh ,etatS fo tnemtrapeD eht nihtiw dehsilbatse eb dluow egnahC etamilC labolG no eciffO nA .snoitan gnipoleved rojam rehto dna ,lizarB ,aidnI ,anihC gnidulcni ,snoitan gnittime )GHG( sag-esuohneerg rojam lla morf stnemtimmoc noitagitim kees dluow setatS detinU eht ,deificeps snoitca eht gnomA .egnahC etamilC no noitnevnoC krowemarF snoitaN detinU eht ot seitraP eht fo secnerefnoC eht fo sgniteem erutuf gniyficeps ,snoitaitogen egnahc etamilc lanoitanretni ni elor evitcurtsnoc dna evitca erom a ekat ot setatS detinU .noisivorp etaneS oN .noisivorp ralimis oN eht fo ycilop eht eb dluow ti taht setats ,A eltitbuS ,II eltiT egnahC etamilC no noitarepooC etamilC lanoitanretnI secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .sraey 5 revo noillib 01$ ezirohtua dluow etaneS eht dna "dedeen sa smus hcus" ezirohtua dluow esuoH ehT .setats rof gnidnuf fo erahs rehgih a edivorp dluow etaneS ehT .EOD ta margorp tnarg kcolb ycneiciffe .sllib owt eht neewteb tahwemos reffid margorp tnarg ygrene lacitnedi ylraen a etaerc dluow 572 noitceS .noitatnemelpmi dna ,hcaertuo cilbup kcolb ycneiciffe ygrene eht rof airetirc ytilibigile ehT ,seigetarts dna slaog ycneiciffe ygrene fo tnempoleved eht .ycneiciffe ygrene troppus dluow margorp ehT .stnemnrevog lacol dna etats .ycneiciffe ygrene gnitomorp redisnoc ot seicnega etomorp ot sdradnats laredef redisnoc ot snoissimmoc rof margorp tnarg kcolb ycneiciffe ygrene na hsilbatse yrotaluger etats tcerid ton dluow llib esuoH ehT yrotaluger ytilitu etats eriuqer dluow 372 noitceS ot )EOD( ygrenE fo tnemtrapeD eht tcerid dluow 9 traP .gnidnuf .margorp ygrenE etatS eht ezirohtuaer dna margorp .sraey 5 revo noillib 57.3$ gnidivorp ,margorp noitazirehtaeW dednemmocer-esuoH fo tnuoma noitazirehtaeW EOD eht rof sraey 5 revo noillib noitazirehtaeW EOD eht rof noitazirohtua gnidnuf eht eht elbuod ylraen ezirohtua dluow llib etaneS ehT 7$ ezirohtua dluow ,172 noitceS ,F eltitbuS ,II eltiT esaercni dluow ,4309 noitceS ,3 traP ,A eltitbuS ,XI eltiT lacoL dna etatS - ycneiciffE ygrenE .snoitutitsni cilbup ta stcejorp rewop dna taeh denibmoc rof snaol ekam dluow taht dnuf gnivlover laredef a etaerc dluow 6 traP .TCAPE fo 3071§ rednu seetnaraug naol rof elbigile eb dluow snoitavoner gnidliub neerg niatreC .0502 yb esu ygrene-ten -orez ot sgnidliub 5202-erp lla tiforter ot tes eb dluow .margorp laog a ,rehtruF .5202 retfa tliub sgnidliub laicremmoc .margorp naol gnivlover sloohcs neerg a etaerc dluow ,2 traP ,C eltitbuS VI eltiT wen rof esu ygrene-ten-orez eveihca ot tes eb dluow a dna seetnaraug naol rof snoisivorp sah llib esuoH ehT laog lanoitan A .evitaitini sgnidliub laicremmoc ygrene .gnisuoh -orez a hsilbatse dluow 4409 noitceS .EOD ta sgnidliuB .sloohcs dna gnisuoh detsissa dna cilbup lla rof sdradnats ycneiciffe ygrene neerG ecnamrofreP hgiH laicremmoC fo eciffO na cilbup no desucof si llib etaneS eht ;srotces gnidliub etadpu ot )DUH( tnempoleveD nabrU dna gnisuoH etaerc dluow ,3409 noitceS ,4 traP .sedoc gnidliub etats lla srevoc sedoc gnidliub rof noisivorp llib esuoH ehT fo tnemtrapeD eht tcerid dluow ,E eltitbuS ,II eltiT regnorts egaruocne dluow ,3 traP ,A eltitbuS ,XI eltiT sgnidliuB - ycneiciffE ygrenE .snoitca etats tpmeerp ton dluow eltitbus sihT .0102YF dna 9002YF ni sdnuf yranoitercsid fo %10.0 eb dluow eltitbuS siht rof gnidnuf ycnega mumixam ehT .snoitcasnart tekram nepo ni setacifitrec ygrene elbawener dna stesffo deifilauq esahcrup ot dewolla eb dluow seicnega laredeF .0502 yb )ytilartuen -nobrac( snoissime launna ten orez fo laog a htiw ,stegrat noitcuder noissime launna evitcelloc tes dluow APE .yllaunna snoissime sag esuohneerg sti yrotnevni .noisivorp etaneS oN .noisivorp oN ot ycnega laredef hcae eriuqer dluow ,A eltitbuS ,IV eltiT tnemnrevoG lartueN nobraC secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .detpmeerp eb ton dluow )snoitaluger dna( swal laredef dna etatS .tatibah rieht dna efildliw no senibrut dniw desab-dnal fo stcapmi ssessa dna eziminim ot ecnadiug dnemmocer ot eettimmoc a mrof ot roiretnI eht fo .noisivorp etaneS oN .noisivorp oN tnemtrapeD eht seriuqer ,4 retpahC ,B eltitbuS ,IIV eltiT efildliW no stcapmI mraF dniW .emulov selas yticirtcele morf stiforp ytilitu "elpuoced" dna setar hguorht stnemtsevni dirg trams revocer ot seitilitu wolla dluow taht sdradnats yrotaluger redisnoc ot deriuqer eb dluow setatS .seitilitu cirtcele htiw stcejorp noitartsnomed evitarepooc mrofrep dna seigolonhcet yolped pleh ot detcerid eb dluow EOD .noitatnemelpmi troppus ot detaerc eb dluow margorp tnarg gnihctam %52 laredef A .noitatnemelpmi ygolonhcet "dirG tramS" no seicilop esoporp dna yduts ot noissimmoc noitazinredom dirg cirtcele na etaerc dluow ,B eltitbuS ,XI eltiT .setats esoht ni esu yticirtcele latot fo %01 ot pu etubirtnoc dluoc taht stcejorp ygrene tnerruc dna ,ladit ,evaw naeco morf noitareneg yticirtcele wen troppus dluoc ti rehtehw enimreted ot notgnihsaW dna ,nogerO ,ainrofilaC ni yticapac noissimsnart yduts .snoisivorp etaneS oN .snoisivorp oN ot EOD tcerid dluow ,5 retpahC ,B eltitbuS ,IIV eltiT dirG tramS/noissimsnarT yticirtcelE tnempoleved sleufoib dna ,selcihev tneiciffe ygrene ,rewop cirtcele elbawener ,noitcurtsnoc dna sgnidliub tneiciffe ygrene sa hcus ,seirtsudni . lasoporp etaneS neerg ni htworg gniriapmi era taht segatrohs boj sserdda eht ni ton si taht "margorP noitartsnomeD ytrevoP fo pleh ot ,robaL fo tnemtrapeD .S.U eht yb deretsinimda tuO syawhtaP" a rof sedivorp esuoH eht ,oslA .etaneS .margorp lacitnedi ylraen a hsilbatse ot noillim 001$ ,smargorp gniniart boj etats dna lanoitan hsilbatse eht naht erom noillim 52$ ezirohtua dluow esuoH ehT ot pu ezirohtua dluow 772 noitceS ,F eltitbuS ,II eltiT ot gnidnuf ni noillim 521$ ot pu ezirohtua dluow I eltiT sboJ neerG .ygolonhcet dna ,tnempiuqe ,serutxif ,sgnidliub tneiciffe ygrene esahcrup dna ,ni tsevni ,poleved sessenisub llams pleh .noisivorp etaneS oN .noisivorp oN ot serutnebed dna ,stnarg ,snaol hsilbatse dluow III eltiT ssenisuB llamS - ycneiciffE ygrenE secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH ).lliB mraF 8002 eht ni yciloP ygrenE elbaweneR ,03143LR tropeR SRC ees ,dnuorgkcab erom roF( .egarots dna ,noitatropsnart ,tsevrah ,noitcudorp ssamoib no hcraeser .noitcudorp ygrene rehto dna lonahte rof gnidnuf wen ni noillim 632$ dna ;seireniferoib wen cisolullec rof kcotsdeef sa sporc ygrene detacided fo tnempoleved eht rof seetnaraug naol ni noillib 6.1$ worg ot srotarepo dna srenwodnal ot )stcartnoc ot pu etirwrednu ot gnidnuf wen ;noitcudorp sleufoib raey evif gnidulcni( ecnatsissa lacinhcet dna laicnanif wen no stnemyap evitnecni noitcudorp ni noillib 1$ ylraen edivorp ot margorp )REB( evreseR ygrenE ssamoiB a si sedulcni 1223 .R.H fo V eltiT ,ralucitrap nI .noitcudorp 1223 .R.H morf dettimo 9142 .R.H fo noisivorp ygrene lonahte cisolullec gnipoleved no sucof denethgieh a elbaton tsom ehT .1223 .R.H fo V eltiT rednu noillib dna gnidnuf ni sesaercni laitnatsbus gnidulcni ,2002 fo tcA 2.2$ htiw derapmoc sraey 5 revo snoisivorp ygrene XI ytiruceS mraF eht yb dehsilbatse )XI eltiT( eltit ygrene eltiT rof gnidnuf wen ni noillib 2.3$ fo latot a sesoporp eht morf snoisivorp lareves dnetxe dna dnapxe 9142 .R.H 9142 .R.H ,ralucitrap nI .1223 .R.H fo V eltiT ni fo XI eltiT dna 1223 .R.H fo V eltiT htoB .7002 ,2 yluJ naht snoisivorp erom dna slevel gnidnuf rehgih sah 9142 no esuoH eht yb dessap saw taht--7002 fo tcA ygreneoiB .R.H fo XI eltiT taht si 9142 .R.H dna 1223 .R.H fo seltit dna ,noitirtuN ,mraF eht--9142 .R.H fo )XI eltiT( eltit ygrene erutlucirga eht neewteb noitcnitsid rojam ehT .noisivorp oN ygrene eht morf snoisivorp eht fo lareves semussa V eltiT ygrenE erutlucirgA .tcA noitneverP ."gniguoG ecirP" timiL ot ytirohtuA etatS gniguoG ecirP laredeF desoporp eht ,2521 .R.H dna laredeF :sesaercnI ecirP enilosaG ,63222SR tropeR ,llib enola-dnats a ni noisrev ralimis a dessap esuoH eht SRC ees ,sliated erom roF( .ycnegreme ygrene na gnirud ,7002 ,32 yaM no ,revewoH .llib esuoH ni noisivorp oN stekram leuf ni gniguog ecirp ezilanimirc dluow IV eltiT .noisivorp oN gniguoG ecirP .seigolonhcet ygrene negordyh fo noitacilppa laicremmoc dna ,noitartsnomed ,D&R ecnavda .1223 .R.H erofeb esuoH eht dessap hcihw ot )ezirP-H( sezirp hsac drawa ot margorp evititepmoc ,236 .R.H ni ezirP-H eht ot lacitnedi si noisivorp sihT .noisivorp oN a tcudnoc ot EOD tcerid dluow ,H eltitbuS ,VI eltiT drawA negordyH ).stcejorP noitareneG maertS-nI dna ,evaW ,ladiT gnitceffA seussI ,38833LR tropeR SRC ees ,ygrene eniram no dnuorgkcab erom roF( .secnereffid lamreht naeco .D&R ygrene dna ,stnerruc ,sedit ,sevaw morf yticirtcele secudorp )E eltitbuS( sleufoib dna ,)D eltitbuS( ralos ,)C eltitbuS( .seigolonhcet ygrene rehto sedulcni taht ygolonhcet "ygrene eniram" no desucof margorp lamrehtoeg ,)B eltitbuS( eniram no smargorp D&R llib esuoH ehT .ygrene eniram edulcni sllib htoB D&R na etaerc ot EOD tcerid dluow ,G eltitbuS ,II eltiT tcudnoc ot EOD rof gnidnuf ezirohtua dluow VI eltiT D&R ygrenE elbaweneR secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH .EOD .)2105§ ,96-011 .L.P( tcA setepmoC ta dehsilbatse eb ygrenE - ycnegA stcejorP hcraeseR aciremA eht fo trap sa wal otni dengis noisivorp ralimiS .noisivorp oN decnavdA na taht tcerid dluow ,A eltitbuS ,VI eltiT E-APRA secnereffiD yeK 6 .R.H dessaP-etaneS 1223 .R.H dessaP-esuoH ¢ ¢ ¢ ¡ ¢ ¢ The proposed New Direction for Energy Independence, National Security, and Consumer Protection Act (H.R. 3221) is an omnibus energy policy bill that consists mainly of provisions for energy efficiency and renewable energy. It was composed of several bills that were reported from various committees.8 In House floor action on August 4, 2007, several amendments to H.R. 3221 were adopted, including one that would establish a renewable energy portfolio standard (RPS). The House approved the amended bill by a vote of 241-172. Minutes later, the tax provisions bill (H.R. 2776) was approved and then incorporated into H.R. 3221. A brief description of the provisions in H.R. 3221 and H.R. 2776 follows. ¢ A description of some key provisions and amendments follows: Renewable Energy Portfolio Standard (RPS).9 H.Amdt. 748 proposed an RPS target that would reach 15% by 2020. Up to 4% of the target could be met with certain energy efficiency measures. The amendment was approved by a vote of 220-190. Renewable Energy and Energy Conservation Act (H.R. 2776). This bill proposed extensions and additions of several tax incentives for renewable energy and energy efficiency, including a four- year extension of the renewable energy electricity production tax credit. The bill was approved on a separate floor vote by a tally of 221-189. It was subsequently incorporated into H.R. 3221. Renewable Fuel Standard (RFS). Proposed Amendment 81 would have increased RFS to 36 billion gallons by 2022. It was withdrawn. Corporate Average Fuel Economy (CAFE) Standards. Proposed amendments 62 and 95 offered different policies for increasing CAFE standards. Proposed Amendment 95 was withdrawn, and Proposed Amendment 62 was not included in the rule that prescribed floor action. Oil Savings Provisions. Proposed Amendment 36 would have set a goal to reduce imported oil to less than 25% of vehicle petroleum use by 2015. Proposed Amendment 72 would have called for development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016, rising significantly by 2025. Neither Amendment 36 nor Amendment 72 was included in the rule that prescribed floor action. 8 The bills included H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R. 2635, H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2776, H.R. 2847, and a draft bill (unnumbered) from the Committee on Energy and Commerce. More details about the bills are available in the Legislation section of this report. 9 Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum amount of electricity from renewable energy resources or purchase tradable credits that represent an equivalent amount of renewable energy production. The minimum requirement is often set as a percentage share of a supplier's total retail electricity sales. ¢ ¢ ¢ This title assumes the provisions of H.R. 2947. It would authorize up to $125 million in funding to establish national and state job training programs, administered by the U.S. Department of Labor, to help address job shortages that are impairing growth in green industries, such as energy efficient buildings and construction, renewable electric power, energy efficient vehicles, and biofuels development. This title assumes the provisions of H.R. 2420. It would declare U.S. policy on international climate cooperation, authorize assistance to promote clean and efficient energy technologies in foreign countries, and establish the International Clean Energy Foundation. ¢ This subtitle would state that it is the policy of the United States to take a more active role in international climate change negotiations including future fifteenth meeting of the Conference of Parties (COP-15) to the United Nations Framework Convention on Climate Change. Also, the United States would declare its intent to seek mitigation commitments from all major greenhouse gas (GHG) emitting nations, including China, India, Brazil, and other major developing nations. An Office on Global Climate Change would be established at the Department of State. The Secretary of State would be required to report to Congress on progress made in promoting transparency in extractive industries resource payments. ¢ The U.S. Agency for International Development (USAID) would be directed to report to Congress on efforts to support policies for clean and efficient energy technologies. The Department of Commerce would be directed to increase efforts to export such technologies and report to Congress on the results. Other U.S. agencies with export promotion responsibilities would be required to increase efforts to support these technologies. Also, increased efforts are requested from the Interagency Working Group on the Clean Energy Technology Exports Initiative, particularly to implement its 2002 strategic plan. The Secretary of State would be required to report to Congress on the impact of global climate change on developing countries. ¢ The Foundation would be established with the long-term goal of reducing GHG emissions. It would be directed to use the funds authorized by this subtitle to make grants to promote projects outside of the United States that serve as models of how to reduce emissions. An annual report to Congress would be required. ¢ ¢ ¢ ¢ This title assumes the provisions of H.R. 2389. Loans, grants, and debentures that would be established to help small businesses develop, invest in, and purchase energy efficient buildings, fixtures, equipment, and technology. On May 23, 2007, the House Committee on Small Business ordered reported H.R. 2389 by voice vote. ¢ This title has eight subtitles, most of which correspond to a bill ordered reported by the House Committee on Science and Technology. ¢ ¢ This subtitle assumes the provisions of H.R. 364. ARPA-E would be established at the Department of Energy (DOE). The new agency's goal would be to reduce the energy imports from foreign sources by 20% over the next 10 years. On May 23, 2007, the House Science and Technology Committee ordered reported H.R. 364. On August 9, 2007, the President signed the America Competes Act (P.L. 110-69). In that law, Section 5012 (Title V) directs that an ARPA-E be established at DOE. ¢ This subtitle assumes the provisions of H.R. 2313. DOE would be directed to support wave, tidal, current, and ocean thermal energy technology R&D and commercial applications to help expand energy production. Further, DOE would be instructed to award grants to institutions of higher education (or consortia thereof) to establish National Marine Renewable Energy Research, Development, and Demonstration Centers. On June 21, 2007, the House Committee on Science and Technology reported H.R. 2313. ¢ This subtitle assumes the provisions of H.R. 2304. DOE's program for geothermal energy R&D, demonstration, and commercial application would be expanded to cover certain advanced concepts. On June 21, 2007, the Committee reported H.R. 2304. ¢ Part 1 assumes the provisions of H.R. 2774. It aims to improve the cost and effectiveness of thermal energy storage technologies that could improve the operation of concentrating solar power electric generating plants. Also, it calls for improved integration of concentrating solar power into regional electricity transmission systems. On June 22, 2007, the House Committee on Science and Technology ordered reported H.R. 2774 by voice vote. Part 2 would require DOE to create a Solar Energy Industries Research and Promotion Board and a Solar Energy Research and Promotion Operating Committee. The Board and Committee would work with manufacturers and importers of solar energy products to improve consumer awareness ¢ ¢ ¢ of solar energy options and appropriate certifications. The solar program would be funded by a small portion of industry revenues. No appropriations are authorized. This subtitle assumes the provisions of H.R. 2773. It aims to improve information about federal biofuels research programs, focus research on infrastructure and biorefineries, study potential impacts of increased biofuels use, and increase authorized funding for DOE biofuels research. An authorization of $25 million would be created to provide grants for biofuels RD&D and commercial applications in states that have low rates of ethanol production. A university-based program would provide grants up to $2 million for R&D on renewable energy technologies. Priority would be given to universities in low income and rural communities with proximity to trees dying of disease or insect infestation. This Subtitle assumes the provisions of H.R. 1933. A program would be established at DOE for carbon capture and storage R&D and demonstration. DOE would be directed to engage the National Academy of Sciences (NAS) to conduct a review of the program. EPA would be directed to assess potential impacts of such storage on public health and safety and the environment. DOE would be directed to work with NAS to establish graduate degree programs on geological sequestration at universities. Further, a university-based grant program would be created. Part 1 would direct the President to establish an interagency committee to coordinate research on global change. The committee would be responsible for developing a national global change research and assessment plan. Further, a U.S. global change research program would be established, with the Office of Science and Technology Policy (OSTP) serving as the lead agency. A report to Congress would be required to accompany each annual budget request. Part 2 would establish an interagency working group charged with recommending ways to coordinate federal data management and archiving activities for climate data and other global change data. £ DOE would be directed to conduct a competitive program to award cash prizes to advance R&D, demonstration, and commercial application of hydrogen energy technologies. The provisions of this Subtitle are identical to those of H.R. 632, which passed the House on June 6, 2007. ¢ This title assumes the provisions of H.R. 2419. Agricultural-based energy programs established by the Farm Security Act of 2002 would be expanded and continued through FY2012. A total of about $3.2 billion in new funding is proposed including $1.4 billion for biofuels production incentives, $800 million to underwrite up to $2 billion in loan guarantees for biorefineries, $420 million for research on biomass feedstocks and production, and new mandatory funding for a ¢ ¢ ¢ cellulosic biomass feedstock reserve. Most new funding would be directed away from corn-based ethanol and toward cellulosic-based biofuels and other new technologies. USDA would be directed improve feedstock flexibility for bioenergy producers by purchasing eligible commodities and selling them to bioenergy producers in a way that ensures no cost to the federal government and avoids forfeitures to the Commodity Credit Corporation. Except for sections 5011 and 5012, all other provisions of Title V are included in H.R. 2419, the Farm, Nutrition, and Bioenergy Act of 2007, which passed the House on July 27, 2007. (For more background, see CRS Report RL34130, Renewable Energy Policy in the 2008 Farm Bill.) This title assumes the provisions of H.R. 2635. It would set a goal to make the federal government carbon-neutral by 2050. Several energy and fuel efficiency policies would be undertaken to meet this goal, including standards for federal fleet emissions, green buildings, and agency purchases of renewable energy. ¢ Each federal agency would be required to inventory and report on its GHG emissions annually. EPA would be required to review the each agency's inventory to see that it complied with guidance for data collection. EPA would be directed to set a collective annual emission reduction target for each year in the period from 2010 through 2050. The goal would be to achieve zero net annual emissions (carbon-neutrality) by 2050. The Government Accountability Office (GAO) would be required to issue a report on markets for GHG offsets. Federal agencies would be allowed to purchase offsets and renewable energy certificates in open market transactions. This subtitle would not preempt or limit any state actions to reduce emissions. ¢ ¢ Federal agencies would be required to purchase "low GHG" vehicles and to procure energy- efficient (Energy Star) products or products designated by the federal energy management program (FEMP-designated). DOE would be directed to establish, by rule, revised federal building energy efficiency performance standards for new federal buildings and major federal building renovations. Relative to a comparable building's fuel use in 2003, buildings covered by the rule would be directed to reduce the share of fossil fuel use by 55% in 2010, reducing steadily to 100% (zero emissions) by 2030. Each federal agency would be required to ensure that a large capital investment in an existing building that is not a major renovation employs the most energy efficient designs, systems, equipment, and controls that are life-cycle cost effective. Federal agencies would be directed to avoid leasing buildings that are not Energy Star rated. Alternative fuels could not be procured if they have GHG emissions greater than those produced by conventional petroleum. Federal contracts for renewable energy could not exceed 30 years and could not include energy generated from municipal solid waste. The Office of Management and Budget (OMB) would be required to report annually on progress under Title VI. ¢ ¢ ¢ Federal executive branch agencies would be directed to develop and implement a telework (work from home or close to home) policy for eligible employees. It would exclude those employees who handle secure materials or special equipment, are assigned to national security functions, or voluntarily decline the telework option. This title assumes the provisions of H.R. 2337. It includes provisions that would regulate wind impacts on wildlife, require a study of transmission capacity to help foster ocean wave, tidal, and current energy projects, create grants for studies of alternative energy development on the outer continental shelf, and establish pilot programs to use federal lands to harvest woody biomass and install concentrating solar power facilities. ¢ ¢ Subtitle A would repeal subsections 365(g) and 365(i) of EPAct 2005 regarding recovery of permit processing costs. It would require the Secretary of the Interior to impose fees on the oil and gas industry to recover costs associated with the streamlining of permits during the pilot project established by EPAct to improve federal permit coordination. A new 45-day deadline would be imposed for the consideration of applications for permits under section 366 of EPAct 2005. Section 369 of EPAct would be amended by removing two deadlines related to oil shale research and development and the preparation of a final environmental impact statement for commercial oil shale and tar sands leasing on public lands. H.R. 3221 would limit section 390 of EPAct, which allows for a rebuttleable presumption regarding the application of categorical exclusion under the National Environmental Policy Act (NEPA) for oil and gas exploration and development activities, and adhere to the regulations issued by the Council on Environmental Quality. And a Best Management Practices (BMP) provision would require BLM to allow for public comment and review before lease stipulation waivers are granted. (More details on Subtitle A can be found in CRS Report RL34111, Energy Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas Provisions.) ¢ ¢ ¢ Chapters 1 through 3 would require a minimum of 550 audits annually, and increase fines for royalty payment violations under the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA). Surface owner protection would be enhanced under split estates where the federal government owned and leased minerals. Onshore oil and gas reclamation and bonding requirements would become more stringent. Additional requirements for the protection of water resources are included and new fees would be assessed to lessees of federal lands as a disincentive to hold and not develop those lands. (More details on Chapters 1 through 3 of Subtitle B can be found in CRS Report RL34111, Energy Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas Provisions.) ¢ ¢ ¢ Chapter 4 on Wind Energy would require the Department of the Interior to form a wind turbines guidelines advisory committee to study and recommend guidance for wind energy developers to mitigate the impact of turbines on birds and wildlife. State laws and regulations would not be preempted. Chapter 5 on Enhancing Energy Transmission would direct DOE to study transmission capacity in California, Oregon, and Washington to determine whether it could support new electricity generation from ocean wave, tidal, and current energy projects that could contribute up to 10% of total electricity use in those states. ¢ ¢ A grant program would be created for studies of alternative energy development on the outer continental shelf. The Department of the Interior would be directed to assess and report to Congress on the potential for using leasing of federal lands and other means to help develop rights-of-way and infrastructure along Bureau of Reclamation canals to support solar and wind energy production. A program would be established to research methods for improving the energy efficiency of reverse osmosis technology that is used for water desalination, water recycling, and clean up of water contamination. A pilot program would be created to develop a strategic solar reserve, and would identify and assess potential sites on federal lands for concentrating solar power systems. The National Oceanic and Atmospheric Administration would be directed to issue regulations necessary to implement its authority to license offshore thermal energy conversion facilities. A program would be established to use biomass from federal forest lands. Chapter 1 would direct the Department of the Interior to develop a methodology for an assessment of the national potential for geological storage of carbon dioxide. Chapter 2 would direct the U.S. Geological Survey to estimate the potential for increasing carbon sequestration in natural systems through management measures or restoration activities in each ecosystem. A report to Congress would be required. Chapter 3 would direct the Bureau of Land Management to maintain records on, and an inventory of, the amount of carbon dioxide stored in geological structures on federal lands. A report to Congress would be required that estimates the potential capacity for such storage on federal lands. Chapter 4 would direct the Department of the Interior to establish an interagency National Resources Management Council on Climate Change to address the impacts of climate change on Federal lands, the ocean environment, and the federal water infrastructure. The Council would prepare a national plan that would be presented to Congress. Also, a national policy would be established that directs the federal government to cooperate with state, tribal, and affected local governments, other concerned public and private organizations, landowners, and citizens to use all practicable means and measures to assist wildlife populations and their habitats in adapting to and surviving the effects of global warming. A national strategy would be developed, an advisory board would be formed, and a state and tribal grants program would be established. Chapter 5 would direct the Department of Commerce to develop a national strategy to support coastal state and federal agency efforts to predict, plan for, and mitigate the impacts on ocean and coastal ecosystems from global warming, relative sea level rise, and ocean acidification. Further, it would be directed to develop a coastal climate change resiliency planning and response ¢ ¢ ¢ program to prepare for and reduce the negative consequences that may result from climate change in the coastal zone, and provide financial and technical assistance and training. Also, a National Integrated Coastal and Ocean Observation System would be established to improve the Nation's capability to measure, track, explain, and predict events related directly and indirectly to weather and climate change. ¢ This Subtitle would require that the Secretary of the Interior accept a lessee's request to modify certain leases established in 1998 and 1999 without price thresholds ("covered leases") to include price thresholds. Lessees holding "covered leases" would not be eligible for new oil and gas leases in the Gulf of Mexico unless the covered leases are modified to include price thresholds or the lessee would agree to pay a newly established "conservation of resources fee." The Subtitle would repeal royalty relief provisions established by sections 344 and 345 of the Energy Policy Act of 2005 (P.L. 109-58). It would also "reaffirm" the Secretary's authority to impose a price threshold in certain leases. This Subtitle is nearly identical to Title II of the House-passed version of H.R. 6. (More details on Subtitle E can be found in CRS Report RS22567, Royalty Relief for U.S. Deepwater Oil and Gas Leases.) Subtitle F would establish an Oil Shale Community Impact Assistance Fund. Also, for certain existing federal leases, it would prohibit surface occupancy for oil and gas drilling on Colorado's Roan Plateau, which is federal land formerly designated as Naval Oil Shale Reserves. (More details on oil and natural gas provisions in Subtitle F can be found in CRS Report RL34111, Energy Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil and Gas Provisions.) Also, the Minerals Management Service would be directed to report to Congress on the status of regulations required by the Outer Continental Shelf Lands Act with respect to wind energy production on the outer continental shelf. This title assumes the provisions of H.R. 2701. It would promote energy efficient transportation and public buildings and create incentives for the use of alternative fuel vehicles and renewable energy. On June 20, 2007, the House Committee on Transportation and Infrastructure ordered reported H.R. 2701 by voice vote. A Center for Climate Change and Environment would be established to plan, coordinate, and implement strategies to reduce transportation-related energy use, mitigate the effects of climate change, and address the impacts of climate change on transportation systems and infrastructure. ¢ ¢ ¢ ¢ Part 1 provides support for public transportation systems. Federal grants up to 100% of costs would be made available to improve public transportation services that involve fare reductions. For projects that involve acquiring clean fuel or alternative fuel vehicle-related equipment or facilities for the purposes of complying with the Clean Air Act, federal grants would be made available that cover up to 100% of net costs. The Surface Transportation Board's mediation capacity would be expanded to assist public transportation agencies seeking track rights of way with rail carriers. DOT would be directed to create a pilot program to conduct vanpool demonstration projects in three urbanized areas and two non-urbanized areas to increase vanpool use and the number of vanpools in service. Part 2 provides support for federal-aid highways. The federal share for congestion mitigation and air quality (CMAQ) projects would be increased up to 100% of project or program cost. A sense of Congress would be established that in constructing new roadways or rehabilitating existing facilities, state and local governments should employ policies designed to accommodate all users, including motorists, pedestrians, cyclists, transit riders, and people of all ages and abilities. Part 1 would direct DOT, in coordination with EPA, to establish and conduct a pilot grant program to assist railroad carriers in purchasing hybrid locomotives, including hybrid switch locomotives, in order to demonstrate the extent to which such locomotives increase fuel economy, reduce emissions, and lower costs of operation. Also, DOT would be directed to create a program of capital grants for the rehabilitation, preservation, or improvement of railroad track (including roadbed, bridges, and related track structures) of class II and class III railroads. Part 2 would direct DOT to conduct feasibility studies for the construction of pipelines dedicated to ethanol transportation. A report to Congress would be required. Part 1 would direct DOT to establish a short sea transportation program and designate short sea transportation projects to be conducted under the program to mitigate landside congestion. Short sea shipping activities would be made eligible for support from DOT's capital construction fund. A report to Congress on the short sea transportation program would be required. Part 2 would strengthen certain provisions that aim to prevent pollution from ships. DOT, in coordination with EPA, would be directed to establish a pilot demonstration grant program to reduce noise, airport emissions, greenhouse gas emissions, or water quality impacts. Each project grant would be limited to a maximum of $2.5 million. Under Part 1, for each prospective project to construct, alter, acquire, or lease a building, the General Services Administration (GSA) would be directed to prepare estimates of the future ¢ ¢ ¢ energy performance of the building and a description of the use of energy efficient and renewable energy systems, including photovoltaic systems, in carrying out the project. The period for calculating life-cycle cost effectiveness in federal buildings would be extended from 25 years to 40 years. GSA would be directed to use up to $30 million authorized from unobligated balances of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the DOE headquarters building in Washington, DC. Part 2 would prohibit, except under certain circumstances, the purchase of incandescent light bulbs for use in Coast Guard office buildings. Part 3 would allow the Architect of the Capitol (AOC) to perform a feasibility study regarding construction of a photovoltaic roof for the Rayburn House Office Building. The AOC may construct a fuel tank and pumping system for E--85 fuel at or within close proximity to the Capitol Grounds Fuel Station. To the maximum extent practicable, the AOC would be required to include energy efficiency measures, climate change mitigation measures, and other appropriate environmental measures in the Capitol Complex Master Plan. For the purpose of reducing carbon dioxide emissions, the Architect of the Capitol would be directed to install technologies for the capture and storage or use of carbon dioxide emitted from coal combustion in the Capitol Power Plant. AOC would be directed to operate the steam boilers and chiller plant at the Capitol Power Plant in the most energy efficient manner possible to minimize carbon emissions and operating costs. ¢ Part 1 would declare a federal policy that all federal water resources projects reflect national priorities for flood damage reduction, navigation, ecosystem restoration, and hazard mitigation and consider the future impacts of increased hurricanes, droughts, and other climate change- related weather events. A 21st Century Water Commission would be established to project future water supply and demand, impacts of climate change to the nation's flood risk and water availability; and associated impacts of climate change on water quality. EPA would be directed to arrange with NAS for a study that will identify the potential impacts of climate change on the nation's watersheds and water resources, including hydrological and ecological impacts, including the potential impacts of climate change on water quality. The Secretary of the Army would be directed to ensure that water resources projects and studies carried out by the Corps of Engineers take into account the potential short and long term effects of climate change. Part 2 would direct the Federal Emergency Management Agency (FEMA) to conduct a comprehensive study of the increase in demand for FEMA's emergency preparedness, response, recovery, and mitigation programs and services that may be reasonably anticipated as a result of an increased number and intensity of natural disasters affected by climate change, including hurricanes, floods, tornadoes, fires, droughts, and severe storms. ¢ This title assumes the provisions of a draft bill adopted by the House Committee on Energy and Commerce on June 28, 2007. ¢ ¢ ¢ ¢ ¢ This subtitle has nine parts. Part 1 on appliance efficiency would set new efficiency standards for residential clothes washers, dishwashers, dehumidifiers, refrigerators, refrigerator-freezers, freezers, electric motors, and residential boilers. DOE would be allowed to establish regional variations in standards for heating and air conditioning equipment. DOE would be required to complete a rulemaking process for furnace fans by 2013. Federal agencies would be directed to purchase devices that limit standby power use. DOE would be directed to issue a final rule that sets energy conservation standards for battery chargers. Certain energy efficiency measures for walk-in coolers and walk-in freezers would be set by legislation. Also, several procedural changes would be made to expedite the DOE rulemaking process. Part 2 would set a mandatory target for lighting efficiency, set a standard for incandescent reflector lamps, and require federal agencies to replace incandescent lights with more efficient ones. Energy efficiency standards would be set by legislation for metal halide lamp fixtures designed to be operated with lamps rated between 150 watts and 500 watts. Part 3 on residential buildings would encourage stronger state building codes, require improved codes for manufactured housing, and reauthorize the DOE Weatherization program. DOE would be directed to conduct a study of the renewable energy system rebate program described in §206(c) of the Energy Policy Act of 2005. The study would determine the minimum funding the program would need to be viable and require a proposed implementation plan. Part 4 on commercial and federal buildings would create an Office of High Performance Green Buildings at DOE. The office would be required to use life-cycle costing and allow agencies to retain cost savings. Federal procurement of green building materials would be increased. Federal agencies would be required to identify energy- and water-saving measures. Demonstration projects would be required at federal facilities and universities. A national goal would be set to achieve zero-net-energy use for new buildings constructed after 2025. Public outreach would be established, including green building technical assistance and information. An EPA program would be established to improve energy efficiency in data centers. Certain green building renovation projects would be eligible for loan guarantees under §1703 of EPACT. GSA would be directed to use available appropriations to support a program to accelerate the use of geothermal (ground source) heat pump equipment in federal facilities. In each purchase of meeting and conference services, federal agencies would be required to consider the environmentally preferable (green) features and practices of a vendor in a manner similar to that already implemented by EPA. A grant program would be established to provide up to $1 million in support of energy efficiency projects at universities. Part 5 on industrial energy efficiency would direct EPA to identify the potential for economically feasible waste energy recovery, create a grant program to support waste energy recovery, and strengthen "clean energy centers" that analyze waste energy recovery. Part 6 on energy efficiency of public institutions would promote combined heat and power systems in public institutions through federal revolving fund loans. EPA would be directed to conduct a study of how sustainable building features, such as energy efficiency, affect perceived indoor environmental quality for students in K-12 schools. ¢ ¢ ¢ Part 7 on energy savings performance contracting (ESPC) would allow use of appropriated funds for ESPCs, eliminate the ESPC program sunset, require training for federal agency contract officers, direct that energy savings be measured, and create a DOE advisory committee to assist with deployment strategies. Part 8 would create an advisory committee on energy efficiency financing. Part 9 would establish an energy efficiency block grant program. This subtitle would create an electric grid modernization commission to study and propose policies on "Smart Grid" technology implementation. A federal 25% matching grant program would be created to support implementation. DOE would be directed to help deploy technologies and perform cooperative demonstration projects with electric utilities. States would be required to consider regulatory standards that would allow utilities to recover smart grid investments through rates and "decouple" utility profits from electricity sales volume. This subtitle would amend EPACT Section 1702(c) on loan guarantees to clarify that DOE should approve project amounts likely to attract other investment, may not establish a loan guarantee limit below 80% of total project cost, and should require assurances that construction workers will be paid prevailing wage rates. Also, categories of projects deemed eligible in EPACT Section 1703 could not be excluded by language in appropriations bills. Part 1 of this subtitle would direct DOE to create a grant program to help establish or convert infrastructure to use renewable fuels, including E85 (85% ethanol). The EPACT authorization for grants to support cellulosic ethanol production would be increased. A grant program would be created to support production of flexible-fueled vehicles. Studies would also be required on the market penetration of flexible-fueled vehicles, the feasibility of constructing dedicated ethanol pipelines, the feasibility of using greater percentages of ethanol in fuel blends, and the adequacy of railroad transportation for delivery of ethanol fuel. Part 2 of this subtitle would establish a grant program and advisory board for U.S.-Israel energy cooperation. The provisions of this Subtitle are identical to those of H.R. 3238. ¢ This subtitle would establish a loan guarantee program for advanced battery development, grant programs for plug-in hybrid vehicles, incentives for purchasing heavy duty hybrids for fleets, and credits for various electric vehicles. ¢ ¢ This Subtitle would improve data collection needed by the DOE's Energy Information Administration to support efficient energy markets. ¢ ¢ ¢ Each natural gas utility would be required to make energy efficiency a priority resource and integrate energy efficiency into its plans and planning processes. Further, state regulators would be directed to consider crafting rate policies that align utility revenue recovery measures with incentives for energy efficiency measures. This Subtitle was added by floor amendment (H.Amdt. 755), which was approved by voice vote. This Subtitle would modify Title VI of the Public Utility Regulatory Policies Act of 1978 to establish an RPS for retail electric utilities that would be administered by DOE. For each retail supplier that sells more than one billion kilowatt-hours (kwh) per year, the RPS would set a minimum electricity production requirement from renewable resources. The standard would start at 2.75% in 2010 and then rise annually until reaching a peak of 15% in 2020. Electricity savings from energy efficiency measures would be allowed to compose a maximum of 25% of the standard in any given year, rising to a peak of 4% of the 15% total in 2020. Many provisions in this Subtitle are similar to those of H.R. 969. This Subtitle was added by floor amendment (H.Amdt. 748), which was approved by a vote of 220 to 190. (More details on Subtitle H can be found in CRS Report RL34116, Renewable Energy Portfolio Standard (RPS): Background and Debate Over a National Requirement.) ¢ Congress expresses its recognition and support for renewable energy. In particular, this recognition and support is conferred on clean, consistent, pollution-free large and small scale conventional hydropower energy. This Subtitle was added by floor amendment (H.Amdt. 755), which was approved by vote of 402 to 9. ¢ ¢ ¢ This Title would extend the renewable electricity production tax credit (PTC) for four years, expand the PTC to include ocean thermal and hydrokinetic (wave, tide, and current) energy, extend the 30% business energy tax credit for solar and fuel cell equipment for eight years, authorize $2 billion of clean renewable energy bonds, and remove the cap on the tax credit for residential solar and fuel cell equipment. (For more discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) ¢ ¢ ¢ Transportation fuel incentives would set a $4,000 credit for plug-in hybrid vehicles, establish a 50 cent per gallon production tax credit for cellulosic ethanol fuel, extend the biodiesel production tax credit for two years, increase the alternative refueling stations tax credit, create a fringe benefit for bicycle commuters, and modify depreciation and expensing rules to close a loophole for gas guzzlers by making the incentives available for fuel efficient vehicles. (For more discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues, by Salvatore Lazzari.) Other energy efficiency provisions include a tax credit bond for community programs to reduce greenhouse gases, a tax credit bond for states to provide loans and grants for home improvements and residential equipment, an extension of the tax deduction for commercial buildings, an extension and modification of the appliance credit, and the establishment of a five-year depreciation period for smart electric meters. Also, the bill would clarify that the $1 per gallon production credit for renewable diesel would be available only for fuel produced from biomass. A study of biofuels' future production potential and possible domestic impacts would be required. (For more discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) ¡ (For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) ¢ (For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) (For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) ¢ ¢ ¢ ¡ (For discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy: History and Current Issues.) ¢ ¢ ¢ ¡ ¢ ¢ The proposed Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007 (H.R. 6) is an omnibus energy policy bill that consists mainly of provisions for energy efficiency and renewable energy. The House version of H.R. 6 was amended on the Senate floor. S.Amdt. 1502, an amendment in the nature of a substitute, replaced the House version with the text of S. 1419.10 Several second degree amendments to S.Amdt. 1502 were adopted. The Senate approved the amended bill by a vote of 65-27 on June 21, 2007. ¢ A description of some key provisions and amendments follow: Renewable Fuel Standard (RFS). Section 111 would increase RFS to 8.5 billion gallons per year by 2008, rising to 36 billion gallons by 2022. Corporate Average Fuel Economy (CAFE) Standards. The CAFE standard in Section 502 was modified by S.Amdt. 1792. The adopted provision proposes increases to the combined average fuel economy standard for cars and light trucks that would reach 35 miles per gallon (mpg) by 2020. This would be an increase of about 10 mpg over current standards. The amendment (as modified by S.Amdt. 1843) was adopted by voice vote. Oil Savings Provision. S.Amdt. 1505 established this provision as Section 251. The provision calls for development of a plan to cut U.S. oil use by 2.5 million barrels per day (mbd) by 2016, rising to 10 mbd by 2031, about 35% of projected demand for that year. The amendment was adopted by a vote of 63-30. Renewable Portfolio Standard (RPS).11 S.Amdt. 1537 would have added a new title to create an RPS that would reach 15% by 2020. Certain energy efficiency measures would have also been allowed to help fulfill the RPS. The amendment was never considered for a vote and, after a successful cloture vote on S.Amdt. 1502, the RPS amendment was ruled non-germane. Also, S.Amdt. 1538 would have amended S.Amdt. 1537 to create a 20% "clean portfolio standard" that included renewables, efficiency, coal, and nuclear energy. The amendment was tabled by a vote of 56-39. Tax Provisions. S.Amdt. 1704 would have added a new tax title that included some of the provisions for renewables and energy efficiency in S. 1531. The proposed amendment included a 10 S.Amdt. 1502 was based primarily on S. 1419, which, in turn, was composed of four bills. These four bills, and the corresponding titles of S. 1419, are: Energy Savings Act (S. 1321), Titles I, II, and III; Public Buildings Cost Reduction Act (S. 992), Title IV; Ten-in-Ten Fuel Economy Act (S. 357), Titles V and VI; and the Energy Diplomacy and Security Act (S. 193), Title VII. 11 Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum amount of electricity from renewable energy resources or purchase tradable credits that represent an equivalent amount of renewable energy production. The minimum requirement is often set as a percentage share of a supplier's total retail electricity sales. ¢ ¢ ¢ five-year extension of the renewable electricity production tax credit. It also included many provisions for biofuels and some provisions for oil, coal, and vehicles. The amendment failed to achieve cloture by a vote of 57-36, and was subsequently ruled non-germane. A brief summary of each of these eight titles in the Senate-passed version of H.R. 6 follows. ¢ ¢ Title I would increase the renewable fuel standard, set some standards for greenhouse gas emissions reductions, and provide support for fuel infrastructure, feedstocks, and biorefineries. Subtitle A would extend and increase the renewable fuel standard (RFS), which establishes minimum annual levels of renewable fuel in gasoline. The modified standard would start at 8.5 billion gallons in 2008 and rise to 36 billion gallons in 2022. Starting in 2016, an increasing portion of the requirement would have to be met with advanced biofuels, including cellulosic ethanol, biobutanol, and other fuels derived from unconventional biomass feedstocks. Renewable fuels produced from new biorefineries would be required to achieve at least a 20% reduction in life cycle greenhouse gas emissions relative to life cycle emissions from gasoline (§ 111[a][1][i][II]). A voluntary labeling program would be established for renewable fuels, based on life cycle greenhouse gas emissions (§ 111[i]). Fuel produced from biorefineries that displaces more than 90% of the fossil fuels used in a biofuel production facility would qualify for additional credits under the RFS (§ 112). Subtitle B would provide grants for renewable fueling infrastructure (§ 121), increase the Department of Energy (DOE) bioenergy R&D funding authorization (§ 122), establish 11 bioenergy research centers (§ 123), provide loan guarantees for renewable fuel facilities (§ 124), provide research grants for states with low rates of ethanol production (§ 125), provide grants for infrastructure for transportation of biomass to local refineries (§ 126), establish a biorefinery information center (§ 127), create an alternative fuels database (§ 128), set a labeling requirement for alternative fuels (§ 129), and set a national biodiesel fuel quality standard (§ 130). Subtitle C would require that several studies be conducted, covering specialized topics on biofuels, ethanol, electric vehicles, and biodiesel. DOE would be directed to create a grant program to encourage production of advanced biofuels (§161). Grant awards would be made to projects that would have the greatest reduction in lifecycle greenhouse gas (GHG) emissions. The projects must also reduce GHG emissions by at least 50%. Studies, and subsequent reports to Congress, would be required on environmental impacts of increased use of renewable fuels attributable to the provisions of this bill (§162). Specific aspects would include air and water quality, land use patterns, deforestation rates, GHG emissions, and the long-term capacity to produce biomass feedstocks. Also, EPA would be ¢ ¢ ¢ directed to study whether the volumes of renewable fuel required under Subtitle A would adversely impact air quality. ¢ ¢ Title II would set some new standards for energy efficient equipment, establish goals for fuel savings, strengthen federal energy efficiency requirements, and authorize several new programs for vehicles and grants. Subtitle A would promote advanced lighting technology by requiring all federal lighting to be Energy Star rated by 2010 (§ 211), expanding efficiency standards for incandescent reflector lamps (§ 212), creating the "Bright Tomorrow" lighting prizes for solid state (LED) lighting developments (§ 213), and establishing a "Sense of the Senate" to pass mandatory energy efficiency performance targets for lighting products (§ 214). Also, the Committee markup added a notable provision that did not appear in S. 1115. That provision would authorize grants to support construction of solar, wind, geothermal, ocean, biomass, landfill gas, and Alaska small hydropower projects (§ 215). ¡ ¢ ¢ Subtitle B would establish, by statute, new energy efficiency standards for residential boilers (§ 227), electric motors (§ 229), and some home appliances (§ 230).12 DOE would be directed to set standards by rulemaking for furnace fans (§ 223). Also, DOE would be allowed to set standards for multiple components (§ 221) and regional standards for heating and cooling equipment (§ 222). Further, this subtitle would authorize R&D on improved efficiency for appliances and buildings in cold climates (§ 231) and provide incentives for the manufacture of high-efficiency consumer products (§ 232). Other provisions would guide expedited rulemakings (§ 224), clarify limits to federal preemption of state standards (§ 225), and require Energy Guide labels for several types of consumer electronic products (§ 226). Also, the Committee markup added a provision that would direct DOE to establish a program that supports, develops, and promotes the use of new technologies to improve energy efficiency in materials manufacturing and energy- intensive industries (§ 233). ¢ ¢ Subtitle C would promote high-efficiency vehicles, advanced batteries, and energy storage. DOE would be authorized to fund an R&D program on light-weight materials (§ 241). A loan guarantees program would be created for facilities that manufacture fuel-efficient vehicles (§ 242). Funding awards for qualified investments would be authorized to refurbish manufacturing facilities that produce advanced technology vehicles (§ 243). A 10-year R&D program would be authorized to support U.S. competitiveness in global energy storage markets, and a five-year R&D program would be authorized for electric drive technologies (§ 244). Also, the Committee 12 Identical provisions for boilers, motors, and home appliances appear in S. 1101 and H.R. 2083. ¢ ¢ ¢ markup added a provision that would direct DOE to establish a competitive grant program for state, regional, and local government entities to demonstrate electric drive vehicles. DOE would also be required to establish a program to deploy technologies that would achieve near-term oil savings in the transportation sector (§ 245). ¢ ¢ Subtitle D would set several energy efficiency goals that include reducing gasoline use 45% by 2030 (§ 251) and improving energy productivity by 2.5% in 2012 and each year thereafter through 2030 (§ 252).13 Also, DOE would be authorized to conduct a four-year national media campaign to educate consumers to save energy and reduce oil use (§ 253), and federal agencies would be authorized to carry out programs for demonstration and use of advanced electricity transmission and distribution technologies (§ 254). ¢ ¢ ¢ Subtitle E would promote federal leadership in energy efficiency and renewable energy. Federal and state fleets would be required to reduce petroleum use 30% by 2016 (§ 261). The renewable energy share of federal energy purchases would increase to 15% by 2015 (§262). The authorization for federal agencies to use Energy-Saving Performance Contracts (ESPCs) would be extended permanently (§ 263). Federal buildings would be required to reduce energy use 30% by 2015 (§ 264). DOE would be directed to identify federal sites for installing combined heat and power (§ 265). Federal buildings would be required to reduce fossil energy use by 50%, compared with similar buildings from the past that were not subject to the standard (§ 266). The Department of Housing and Urban Development (HUD) would be required to update efficiency standards for all public and assisted housing (§ 267). DOE would be authorized to conduct R&D and deployment activities that help increase the energy-efficiency of commercial buildings (§ 268). ¢ ¢ Subtitle F would improve energy efficiency assistance to state and local governments by increasing the authorization for the DOE Weatherization program (§ 271), reauthorizing the State Energy program (§ 272), requiring state utility regulatory commissions to consider federal standards to promote energy efficiency (§ 273), authorizing the National Renewable Energy Laboratory (NREL) to provide technical assistance (§ 274), authorizing grants to local governments (§ 275), authorizing grants to universities for demonstration projects (§ 276), authorizing workforce training programs (§ 277), and authorizing funds for education programs to reduce school bus idling (§ 278). 13 The description of Section 252 on page 14 of the Committee's report (S.Rept. 110-65) says that "national energy productivity" would be measured as "gross domestic product (GDP) per unit of energy input." ¢ ¢ ¢ ¢ ¢ DOE would be directed to create an R&D program focused on technology that produces electricity from waves, tides, currents, and ocean thermal differences (§291-292). A report to Congress would be required. Also, DOE would be directed to establish national ocean energy research centers at one to six universities (§293). Title III would call for large-scale testing of carbon dioxide (CO2) storage in geological formations, establish competitive funding awards, direct that a national storage capacity assessment be conducted, and require that the Department of Energy (DOE) demonstrate the use of large-scale capture technologies at industrial facilities. ¢ Subtitle A would direct the General Services Administration (GSA) to establish a program to speed the use of cost-effective energy-efficient lighting equipment and other technologies and practices (§402). Further, GSA would be required to prepare a five-year plan to replace inefficient lighting in GSA buildings using available funds. Also, an EPA matching grant program would be created to help local governments renovate buildings to improve energy efficiency (§403). For this program, $20 million would be authorized. ¢ GSA would be directed to use up to $30 million would be authorized from unobligated balances of the Federal Buildings Fund to support the installation of a solar photovoltaic system for the DOE headquarters building in Washington, D.C. Part 1 would direct GSA to establish an Office of High-Performance Green Buildings and a Green Building Advisory Committee to support R&D and outreach to spur the federal government toward the construction of high performance green buildings. A green building information clearinghouse would be established. The Office would be directed to establish a standard for certification of green buildings. A report to Congress would be required. Part 2 would create a program for Healthy High-Performance Schools that aims to involve states, local governments, and school systems building green schools. EPA, in consultation with the Department of Education, would be allowed to provide grants to state agencies to provide technical assistance and help with the development of state plans for school building design. Also, EPA would be directed to develop model voluntary guidelines for school site selection. In addition to other environmental aspects, the grants and guidelines would have a focus on energy efficiency, natural daylighting, and other energy-related features. ¢ ¢ ¢ Part 3 on Strengthening Federal Leadership would direct the Office of Green Buildings to identify incentives that would encourage the use of green buildings in federal operations. Incentives could include recognition awards and agency retention of cost savings (§451). The Office of Federal Procurement Policy would be directed to revise acquisition regulations to require that acquisition, construction, and major renovations employ green design and to give preference in leasing to buildings that are energy-efficient (§452). The Comptroller General would be directed to conduct an audit of the implementation of this Subtitle and submit a report to Congress that describes the findings (§453). Strategies for addressing storm water runoff would be required for federal facility development projects (§454). Part 4 would call for a Demonstration Project. The Office of Green Buildings would be directed to prepare guidelines for the implementation of a federal demonstration project that would contribute to the research goals of the Office. Funding would be authorized at $10 million per year over five years. ¢ Title V, the Ten-in-Ten Fuel Economy Act of 2007, would require that the corporate average fuel economy standard (CAFE) for new cars and light trucks be increased to 35 miles per gallon (mpg) by 2020 and require a 4% annual increase for 10 years thereafter. Starting in 2011, a 4% annual increase would also be required for medium- and heavy-duty trucks. Title VI would criminalize price gouging in fuel markets during an energy emergency. ¢ ¢ ¢ Title VII would express the sense of Congress on several aspects of international energy cooperation, with a special emphasis on increasing the use of sustainable energy sources. The Department of State would be encouraged to establish four new types of administrative mechanisms. One type of mechanism would be strategic energy partnerships with the governments of major energy producers and consumers, and with governments of other countries. A second type would be petroleum crisis response mechanisms with the governments of China and India. A third would be a Western Hemisphere energy crisis response mechanism. A fourth would be a regionally-based ministerial Hemisphere Energy Cooperation Forum. Also, the Department of State would be encouraged to approach other governments in the Western Hemisphere to cooperate in establishing a "Hemisphere Energy Industry Group" of industry and government representatives, which would be coordinated by the U.S. government. The President would be encouraged to introduce the topic of "the merits of establishing an international energy program application procedure" for discussion at the Governing Board of the International Energy Agency. Also, the bill would establish a "Hemisphere Energy Cooperation Forum," that would be encouraged to implement an Energy Crisis Initiative, an Energy Sustainability Initiative, and an Energy for Development Initiative. ¢ ¢ ¢ Title VIII, Miscellaneous, would require that DOE study and report on the laws and regulations that affect the siting of privately owned electric distribution wires on and across public rights-of- way. ¢ ¡ A package of tax provisions (S.Amdt. 1704) was considered during Senate floor action on the proposed substitute to H.R. 6. The proposed tax package amendment included incentives for renewable energy and energy efficiency as well as oil and natural gas revenue offset provisions. The proposed revenue offsets were similar to, but more extensive than, the offsets proposed in Title XIII, Subtitle A, of H.R. 3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture motion to limit debate.14 ¢ Part I would have extended the PTC for 5 years and expanded it to include ocean thermal and hydrokinetic (wave, tide, and current) energy. Also, it would have extended the 30% business energy tax credit for solar and fuel cell equipment for 8 years and repealed the public utility exclusion. It would have authorized $3.6 billion of CREBs, and raised the cap on the tax credit for residential solar and fuel cell equipment. A new credit would have been created for residential wind equipment. Two incentives for electric transmission would have been established. Also, Part I would have improved depreciation for energy management devices. ¡ Part II would have created three tax incentives for carbon dioxide sequestration. ¢ Part III would have provided several tax incentives for production of cellulosic ethanol and certain other biofuels. ¢ Part IV would have created a credit for plug-in hybrids, capped at $7,500 to $15,000, depending on vehicle weight. The credit for alternative-fueled vehicles would have been extended for 2 years. An exclusion from heavy truck tax would have been established for idling reduction units and certain truck insulation measures. 14 For more details, see CRS Report RL33578, Energy Tax Policy: History and Current Issues, by Salvatore Lazzari. ¢ ¢ ¢ ¢ ¢ Part V would have extended the existing home efficiency retrofit credit for 2 years, the new home credit for 3 years, the commercial building credit for 5 years, and the home appliance credit would have been extended and expanded. ¢ Part VI would have called for a cost-benefit study of pollution reduction, a study of the effect of tax benefits for prices on consumer goods, and a study of tax-credit bonds. Subtitle A on Energy Advancement and Investment had two subparts. Subpart A would have established certain tax measures for timber property. Subpart B would have set out certain tax measures for coal. Subtitle B on Revenue Raising Provisions included several tax modifications that aimed to reduce certain subsidies for oil and natural gas development. The resultant funds would have been used to offset the costs associated with the new tax incentives for energy efficiency and renewable energy. ¢ The proposed Clean Renewable Energy and Economic Development Incentives Act of 2007 (S. 1531) is an omnibus energy tax policy bill that consists mainly of provisions for renewable energy. It has two titles. Title I proposes Tax Incentives for Energy Conservation and Exploration. Title II proposes Investment Tax Credits with Respect to Solar Energy Property and Manufacturing. On the Senate floor, S.Amdt. 1704 would have added a new tax title that included some of the provisions for renewables and energy efficiency in S. 1531. The amendment failed to achieve cloture by a vote of 57-36, and was subsequently ruled non-germane. ¡ ¢ ¡ Title I of S. 1531 would extend three existing tax incentives and establish six new ones.15 Section 101 would extend the renewable energy electricity production tax credit (PTC) for 10 years, to the end of 2018.16 For certain large facilities, such as geothermal and biomass power plants, credit eligibility could be extended for up to two years after the placed-in-service deadline.17 Section 102 would extend the clean renewable energy bonds (CREBs) for 10 years.18 The national total 15 The extensions are in §101, §102, and §106. The new incentives are in §103, §104, §105, §107, §108,and §109. 16 The PTC provision of the Tax Relief Act of 2006 (P.L. 109-432, §201) will expire at the end of 2008. The PTC was previously set by the Energy Policy Act (EPACT, §1301). 17 To qualify under this provision, such plants would have to fulfill two conditions. First, the plant would have to be under construction at the time that the placed-in-service deadline occurs. Second, the plant would have to be operational, producing and selling electricity, within two years after the deadline. 18 The CREBs provision of the Tax Relief Act (§202) will expire at the end of 2008. CREBs were created by EPACT (continued...) ¢ ¢ ¢ bond limit would be $1.2 billion per year for 2007 through 2008 and $1.0 billion per year for 2009 through 2018. Section 103 would establish a tax credit bond for water conservation. Section 104 would create a 10% investment tax credit for geothermal exploration. For residential installations of small wind equipment, Section 105 would establish a 30% investment tax credit, with a limit of $1,000 per kilowatt (kw). Section 106 would extend for five years the investment tax credit for the construction of new energy efficient homes.19 Section 107 would create a 20% investment tax credit for manufacturing equipment used to produce advanced batteries. Section 108 would establish renewable school energy bonds, with a national bond limit of $50 million in 2008, $100 million in 2009, and $150 million in 2010. Under Section 109, bonds would be issued to finance new renewable energy facilities, including equipment that uses tidal, wave, current, and ocean thermal energy. ¡ ¢ ¢ Title II of S. 1531 would permanently extend two tax incentives for solar energy equipment and establish three new incentives for solar equipment.20 ¢ ¢ Section 201 would extend permanently the 30% value of the investment tax credit for business installations of solar equipment.21 In Section 202, the investment tax credit for solar (30%) and geothermal (10%) equipment would be made available to public utilities. Under Section 203, the 30% residential energy efficiency investment tax credit would be extended permanently.22 Further, the cap would be raised to $3,000/kw for solar electric equipment, $2,000 for solar heating and cooling equipment, and $500 for fuel cells. Section 204 would make certain solar equipment eligible for a three-year accelerated depreciation period. Section 211 would establish a 30% investment tax credit for facilities that manufacture solar energy equipment. (For more discussion of the provisions in this bill seeCRS Report RL33578, Energy Tax Policy: History and Current Issues.) (...continued) (§1303). 19 The new energy efficient new homes credit in the Tax Relief Act (§205) will expire at the end of 2008. The new homes credit was created by EPACT (§1332). 20 The credit extensions are in §201 and §203. The new incentives are in §202, §204, and §211. 21 The 30% value of the business solar investment tax credit in the Tax Relief Act (§207) will revert back to 10% at the end of 2008. The 30% value of this credit was established by EPACT (§1337). 22 The residential energy efficiency credit in the Tax Relief Act (§206) will expire at the end of 2008. This credit was created by EPACT (§1335). ¢ ¢ ¢ Fred Sissine, Coordinator Specialist in Energy Policy fsissine@crs.loc.gov, 7-7039 ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL34135