Omnibus Energy Legislation, 109th Congress: Assessment of H.R. 6 as passed by the House

Publication Date: June 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

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Abstract:

The House approved an omnibus energy bill (H.R. 6) on April 21, 2005, that would open the Arctic National Wildlife Refuge (ANWR) to oil and gas leasing, substantially change oversight of electric utilities, increase the use of alternative motor fuels, provide $8.1 billion in energy tax incentives, extend the nuclear accident liability system, and authorize numerous energy R&D programs. The House-passed bill contains many provisions from the conference version of an omnibus energy bill (also H.R. 6) in the 108th Congress that was blocked by a Senate filibuster.

Electricity. In part, the electricity section would repeal the Public Utility Holding Company Act (PUHCA) and establish mandatory standards for interstate transmission. Standard market design (SMD) would be remanded to the Federal Energy Regulatory Commission (FERC).

Renewable Fuels and Ethanol. An increase in renewable fuel and ethanol consumption to 5 billion gallons annually by 2012 would be mandated. However, states could petition for a waiver if the mandate would have severe economic or environmental repercussions, other than loss of revenue to the highway trust fund.

MTBE. Methyl tertiary butyl ether (MTBE), a gasoline additive widely used to meet Clean Air Act requirements, has caused water contamination. The bill would ban the use of MTBE by 2015 with some possible exceptions, provide funds for MTBE cleanup, and provide protection for fuel producers and blenders of renewable fuels and MTBE from defective product lawsuits.

Energy Taxes. The bill would reduce energy taxes about $8.1 billion over 10 years, as compared with $23.5 billion in the H.R. 6 conference report in the 108th Congress and $6.7 billion in President Bush's FY2006 budget request.

Nuclear Energy. H.R. 6 would provide a 20-year extension of the PriceAnderson nuclear liability system to the end of 2025 and authorize new reactors.

Energy Efficiency Standards. New statutory efficiency standards would be established for several consumer and commercial products and appliances. For certain other appliances, the Department of Energy could set new standards.

ANWR. The House-passed bill would authorize oil and gas exploration, development, and production in ANWR, with a 2,000-acre limit on production and support facilities. Supporters of the provision maintain that ANWR oil could be developed with minimal environmental harm, but opponents contend that intrusion on this ecosystem cannot be justified.

Energy Production on Federal Lands. Royalty reductions would be provided for marginal oil and gas wells on federal lands and the outer continental shelf.

This report will not be updated.