Major Provisions in US Energy Bill
USA: August 1, 2005


WASHINGTON - The Senate Friday approved 74 to 26 a broad energy energy bill, a day after the House overwhelmingly cleared the same measure 275 to 156.

 


The bill to carry out the first major overhaul of US energy policy in more than a decade now goes to President Bush, who is expected to sign it into law.

Key elements included in the energy bill are detailed below, along with several items that were dropped.


COST:

* Offers about $14.5 billion in tax breaks and incentives over 10 years to boost oil and natural gas production, and support wind, solar power, and other renewable energy sources.


OIL/GAS:

* Requires a delay of at least 141 days in a US government review of the Chinese-government owned CNOOC Ltd oil company's $18.5 billion bid for American-oil giant Unocal.

* Offers energy companies royalty relief for drilling in the Gulf of Mexico's deep waters.

* Requires an inventory of offshore oil and natural gas resources, including areas off Florida closed to drilling.

* Gives Federal Energy Regulatory Commission, not the states, exclusive authority to approve LNG import terminals.

* Expands Strategic Petroleum Reserve by 300 million barrels to 1 billion barrels.

* Bans oil drilling in the Great Lakes.

* Dropped language in Senate bill requiring the federal government to find ways to cut US oil demand, or to require better fuel mileage on SUVs and other gas-guzzling vehicles.

* Dropped language to open the Arctic National Wildlife Reserve to drilling, but this is expected to be added to a separate government funding bill later this year.


MOTOR FUEL:

* Requires the use of 7.5 billion gallons of ethanol a year as a gasoline additive by 2012, almost double the current use.

* Allows parties in liability suits related to contamination from methyl tertiary butyl ether (MTBE) to move ongoing cases to a federal court.

* Does not extend lawsuit protection to makers of MTBE, which has contaminated state water supplies.


UTILITIES/NUCLEAR:

* Repeals a Depression-era law, the Public Utility Holding Company Act, which prevents certain utility mergers.

* Offers $2 billion in federal insurance to cover delays in building 6 new nuclear power reactors.

* Imposes reliability operating standards on utilities to protect the US electric grid from blackouts.

* Extends expiring accident insurance protection for owners of nuclear power plants by 20 years.

* Permits power lines across federal public lands, overriding federal agency objections to siting decisions.

* Dropped proposal to require US utilities to generate 10 percent of their power from renewable sources such as wind.

MISC:

* Moves the start of daylight-saving time in 2007 from the first Sunday in April to the second Sunday in March, and extends it by one week to the first Sunday in November.

* Increases funding to develop low-emission power plants fueled by coal.

* Creates a federal panel to promote technologies that reduce greenhouse gas intensity, but does not mandate specific cuts in US global warming emissions.

* Studies the health impacts of people living close to petrochemical and oil refineries.

 


REUTERS NEWS SERVICE