House Republicans introduce their version of an Energy Bill, The American Energy Act

Read ACORE’s  breakdown of each section of the proposed bill and a very brief summary of what each section contains.

House Republicans Introduce Their Version of an Energy Bill, The American Energy Act

June 11, 2009--Yesterday, the House Republicans introduced their version of an energy bill, the American Energy Act, touting it as an “all of the above” approach. In a statement issued yesterday House Republican Leader John Boehner (R-OH) explains the bill as “the fastest route to a cleaner environment, lower energy costs, and more American jobs . . . by producing more American Energy in an environmentally safe way, promoting the use of alternative fuels to reduce carbon emissions, such as clean coal and nuclear, and encouraging increased efficiencies and cutting edge technologies to maximize America’s energy potential.”

Below is a breakdown of each section of the proposed bill and a very brief summary of what each section contains: 

Title I - American Energy

Subtitle A – Outer Continental Shelf

•            Immediately puts in place an outer Continental Shelf (OCS) oil and gas leasing program for the drilling in previously unavailable OCS areas and requires the Secretary to conduct lease sales in each OCS planning region where there is a commercial interest in purchasing Federal oil and gas leases.

•            Repeals the Gulf of Mexico Energy Security Act of 2006 which prohibits energy exploration within 125 miles off the Florida coastline.

•            Extends States waters to 12 nautical miles offshore. Currently most state waters are three miles.

•            Provides 75 percent revenue sharing with States for new leases within the 12 nautical miles off their coast and 50 percent for new leases beyond the 12 miles.  A portion of the revenue not shared with the States will be distributed to the American Renewable and Alternative Energy Trust Fund established in this Act.

Subtitle B – ANWR

•            Directs the Secretary of Interior to establish a competitive oil and gas leasing program in the Artic Costal Plain and repeals a prohibition against the production of oil and gas in the Artic National Wildlife Refuge.  Further, the Secretary must conduct the first lease sale within 22 months.

•            Provides 50 percent revenue sharing with Alaska.

•         Distributes 90 percent of the balance of revenues not shared with Alaska to the American Renewable and Alternative Energy Trust Fund established in this Act.

Subtitle C- Oil Shale

•            Requires the Secretary to hold a lease sale within 180 days of enactment, offering 10 parcels for lease for research, development and demonstration of oil shale resources.

Subtitle D- Refinery Permit Process Schedule

•            Streamlines and accelerates the refinery permitting process.

•            Requires the President to designate at least three closed military installations as potentially suitable for construction of a refinery, including at least one suitable for refining biomass to produce biofuel.

Title II – Conservation and Efficiency

Subtitle A – Tax Incentives for Fuel Efficiency

•            Extends credit for alternative fuel vehicles through 2020.

•            Extends credit for hydrogen and alternative fuel vehicle refueling properties through 2020

•            Extends credit for new plug-in vehicles through 2020 and repeals the amount of new cars eligible for the credit

Subtitle B – Tapping America’s Ingenuity and Creativity

•            Provides cash awards to advance the research, development, demonstration, and commercial application of innovative energy technologies and new energy sources.  A portion of the funds will come from the American Renewable and Alternative Energy Trust Fund.

·         Establishes a program to award a $500 million prize to the first automobile manufacturer incorporated in the US to manufacture and sell in the US 50,000 midsized sedan automobiles which operate on gasoline and can travel 100 miles per gallon

·            Requires Secretary to fund advance battery manufacturers and pay no more than 30 percent of the cost of equipping, expanding and establishing a manufacturing facility in the US.

Subtitle C – Home and Business Incentives

·            Extends credits for energy efficiency appliances, homes, and commercial buildings.

·            Extends tax credit for individuals making energy-efficiency improvements to residences, installing qualified solar electric property, qualified solar water heaters and fuel cells property.

·            Tax credit, up to 50% of the cost of a qualified home energy audit, up to $400.

Title III – New and Expanding Technologies

Subtitle A- Alternative Fuel

·            Repeals section of Energy Independence Security Act of 2007 which bans Federal agencies from procuring fuels derived from alternative energy such as liquid coal, tar sands, or oil shale

Subtitle B – Tax Provisions

·            Makes permanent the Renewable Energy Production Tax Credit for the production of renewable electricity and adds to that electricity derived from Indian coal and refined coal.

·            Makes permanent the Solar Energy Property and Fuel Cell Property energy tax credit and extends credit for new Microturbine property placed in service through 2020

·            Extends credit for Clean Renewable Energy Bonds through 2020.

·            Extends credit for biodiesel and renewable diesel through 2020

Subtitle C – American Renewable and Alternative Energy Trust Fund

·            Establishes a fund in the US Treasury which would consist of such amounts as may be transferred pursuant to other portions of this Act.  The Fund would be used to carryout specific provisions of the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 by the following percentage:

·            Biomass -3%

·            Hydroelectric – 2%

·            Oil shale, tar sands, other strategic unconventional fuels – 3%

·            Clean coal – 7%

·            Solar and wind – 7%

·            Renewable Energy – 20%

·            Cellulosic Biofuels – 2.5%

·            Coal and related technologies – 4%

·            Methane hydrate research – 2.5%

·            Incentives for Innovative Technologies – 7%

·            Grants for production of advanced biofuels – 16%

·            Photovoltaic Demonstration Program – 2.5%

·            Geothermal Energy – 4%

·            Marine and Hydrokinetic Renewable Energy Technologies – 2.5%

·            Energy Storage Competitiveness – 10%

·            Smart Grid Technology – 7%

Title IV – Nuclear

·            Authorizes an accelerated regulatory process for new reactor applicants with the intent of cutting the time needed to permit new plans by 50 percent.

·            States the policy of the US to attempt to bring online 100 new nuclear reactors by 2030.

·            Creates a uranium supply-disruption mitigation reserve whereby the Energy Department would audit all unused materials in its system that could be used to power commercial reactors.

·            Prohibits the Administration from withdrawing the Yucca Mountain application currently before the NRC, and repeals the Yucca mountains current 70,000-metric ton limitation, letting science and technology dictate how much the repository can safely hold.

·            Suspends import tariffs and duties on imported nuclear components for 5 years where there is no domestic manufacturer.

·            Establishes a National Nuclear Energy Council to help nuclear energy related investors navigate Federal bureaucracy to efficiently bring their products and services into the marketplace.  The Council will also identify ongoing barriers to nuclear energy.

·            Expands existing energy investment tax credit for renewable energy equipment to include clean coal equipment.

Title V – Environmental Review and the EPA

·            Eliminates the National Environmental Policy Act (NEPA) requirement to identify and consider alternative locations for renewable energy projects.

·            Amends the Clean Air Act by stating the term “air pollutant” does not include carbon dioxide and other certain GHG and shall not be used to regulate climate change.

·            Prohibits any consideration of GHG on any species of fish or wildlife or plant, ensuring the Endangered Species Act shall not be used to regulate climate change.

Title VI – Legal Reform

·            Provides the US District Court for the District of Columbia have exclusive jurisdiction of all claims arising from energy projects under the bill and requires any proceeding be resolved within 180 days of the claim being filed and gives precedence over other court proceedings.

·            Requires all appeals form the District Court be reviewed by the Supreme Court and that those proceedings be resolved 180 days from the claim being filed.