Energy Policy Act of 2002: Summary of S.1766 as Introduced

Publication Date: February 2002

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

Type:

Abstract:

The Energy Policy Act of 2002 (S. 1766) was introduced by Senate Majority Leader Daschle on December 5, 2001, and placed on the Senate Calendar for floor action. The bill is expected to be the primary vehicle for Senate debate on national energy policy.

Key elements of the bill include fundamental changes in electricity regulation; stronger incentives for energy efficiency, conservation, and renewable energy; authorization of energy research and development programs; and new programs to address global climate change. Several important sections have been reserved for drafting by specific committees, such as higher automobile fuel economy standards and new nuclear power plant security requirements. S. 1766 as introduced also does not have any energy tax provisions; some may be added on the floor. Oil and gas leasing in the Arctic National Wildlife Refuge (ANWR) is another major provision not included the bill an issue that is likely to prompt vigorous floor debate.

S. 1766 would further the trend of the past two decades towards competitive electric markets. Subtitle B of Title II of S. 1766 would repeal the Public Utility Holding Company Act of 1935 (PUHCA), which makes certain multi-state utility holding companies subject to regulation by the Securities and Exchange Commission (SEC). Title II, Subtitle C of the bill would prospectively repeal Section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA), which requires utilities to purchase electricity from certain small power producers and cogenerators of industrial heat and power.

Some S. 1766 provisions are intended to provide new areas of momentum for energy efficiency and energy conservation. A controversial provision is likely to be an increase in fuel economy standards for light-duty vehicles, but that language has yet to be drafted. For equipment and appliances, a controversial provision is likely to be a proposal to set a higher standard for central air conditioners and heat pumps.

Significant growth in renewable energy production may also be encouraged by S. 1766. For example, the Renewable Energy Portfolio Standard (RPS) could increase the production of electricity from a variety of renewable energy resources. The RPS incentives would be complemented by a revived Renewable Energy Production Incentive.

Several titles of S. 1766 contain provisions to address the global climate change issue. Finding growing evidence that increases in greenhouse gas concentrations are contributing to global climate changes, the bill calls for the United States to "demonstrate international leadership" in addressing the problem. Title X provides for organizational changes within the federal government to focus on climate change issues.