We just returned home to find a statement about about new energy legislation proposed by the bipartisan House Energy Working Group, and thus post this for our readers without much review. We have a couple of questions we need to ask, and we're not so sure that developing oil shale will be particularly cost effective, but the focus on investing royalties in conservation, environmental restoration and research into new technology looks good. Opening all public lands? Not so good if that includes ANWR.
Interesting article. The group does look to be searching for a policy solution beyond the bickering. [end update].
WALZ AND BIPARTISAN GROUP ANNOUNCE SWEEPING NEW ENERGY LEGISLATION
Freshman Congressman says bipartisan working group plan is comprehensive solution to energy crisis
(Washington, D.C.) - Today, Congressman Walz and nearly two dozen of his colleagues from both sides of the aisle, announced they have developed broad new energy legislation entitled the "National Conservation, Environment, and Energy Independence Act."
The bill, introduced today by Representatives Neil Abercrombie (D-HI) and John Peterson (R-PA), is cosponsored by Walz and the 20-plus members of the House Bipartisan Energy Working Group.
"Today's bill reflects the results of a growing bi-partisan coalition of lawmakers who believe in putting aside partisan bickering and finding common-sense solutions that will speed up America's transition to an energy independent future," said Rep. Tim Walz. "This bold agreement takes into account the short-, medium- and long-term energy challenges facing our country and takes visionary action to address each of them in a responsible manner. This bill expands drilling and increases domestic production of oil, helps consumers by releasing oil from the Strategic Petroleum Reserve, and provides a reliable and significant source of new funding for renewable energy research and energy conservation that will allow us to speed up the development of next-generation renewable fuels."
Walz added: "This bill creates an estimated $2.6 trillion in new revenues from royalties generated by expanded, responsible domestic oil drilling. Roughly a trillion dollars of these royalties are dedicated to financing and expediting America's transition to a clean energy future that reduces our dependence on foreign oil and brings down energy prices at the pump and in our homes. We will tap into the American can do spirit and work in partnership with the states to accomplish this mighty goal."
In the short term, the bill releases oil from the Strategic Petroleum Reserve and repeals the limitation on the number of new qualified hybrid vehicles eligible for the alternative vehicle tax credit, which will help lower gas prices and encourage consumers to buy more fuel efficient vehicles. In the midterm, the bill expands drilling in the Outer Continental Shelf (OCS), which will ultimately increase oil supplies in the U.S. And in the long-term, the bill provides roughly a trillion dollars in dedicated funding from royalties generated by drilling in the OCS for developing new affordable fuels and cutting-edge technologies, restoring natural resources - including the Great Lakes and the Mississippi River, and providing additional funds for low income home heating assistance programs.
Walz has been meeting with the House Bipartisan Energy Working Group regularly since the group was formed in early July. A detailed summary of the legislation follows.
National Conservation, Environment and Energy Independence Act Summary
Title I- Offshore and Onshore Leasing and Other Energy Provisions:
* Repeals all federal prohibitions (moratoria) and Presidential withdrawals against the expenditure of appropriated funds to conduct leasing and preleasing activities on federal lands.
* Repeals the 125 mile moratorium on gas and oil production in the Eastern Gulf of Mexico and the Appropriations' prohibitions on the development of oil shale.
* Allows the use of woody biomass from federal lands for the production of renewable energy.
* Repeals prohibitions preventing federal agencies from entering into contracts for procurement of an alternative or synthetic fuel.
* Repeals the limitation on the number of new qualified hybrid and advanced lean burn technology vehicles eligible for the alternative vehicle tax credit.
Moratoria and State Approval: Prohibits leasing and leasing activities within 25 miles of the coastline of a State and allows coastal states to opt-out of production from 25 to 50 miles offshore within one year of passage of the act.
Military Operations: Requires the Secretary of the Interior to coordinate leasing activities with the Secretary of Defense and requires any unresolved issues to be referred in a timely manner to the President for immediate resolution.
Revenue Distribution of Royalties and Other Revenues Received (estimated value $2.6 Trillion) from Leasing of Offshore Lands Opened by the Act:
* 30% to the General Fund of the U.S. Treasury ($780 billion).
* 30% to Producing States ($780 billion).
* 8% for the Conservation Reserve ($208 billion).
* 10% to the Environment Restoration Reserve ($260 billion).
* 15% to the Renewable Energy Reserve ($390 billion).
* 5% to the Carbon Capture/Sequestration and Nuclear Waste Reserve ($130 billion).
* 2% to the Low Income Home Energy Assistance (LIHEAP) Program ($52 Billion).
The Conservation Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act for conservation programs, such as weatherization, and conservation tax credits and deductions for energy efficiency in the residential, commercial, industrial and public sectors to include Conservation Districts.
The Environment Restoration Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act to conduct restoration activities to improve the overall health of the ecosystems primarily or entirely within our wildlife refuges, national parks, lakes, bays , rivers and streams with emphases on the Great Lakes, the Chesapeake, Delaware and San Francisco Bay/Sacramento San-Joaquin Bay Delta, the Florida Everglades, New York Harbor, Colorado River Basin and Intercoastal Waterways and adjoining inlets.
The Renewable Energy Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Independence Act to accelerate the use of cleaner domestic energy resources and alternative fuels; to promote the utilization of energy-efficient products and practices; and to increase research, development, job training programs and deployment of clean renewable energy and efficiency technologies.
The Carbon Capture and Sequestration Reserve offsets the cost of legislation enacted after the date of the enactment of the National Conservation, Environment and Energy Independence Act to promote research and development projects associated with carbon capture and storage in the production of liquid transportation fuels, electricity, synthetic natural gas and chemical feedstock and for the disposition and recycling/reprocessing of nuclear waste from nuclear power plants.
Buying and Building American- Expresses the intent of Congress that the Act will result in a healthy and growing American industrial, manufacturing, transportation and service sector employing American workers.
Title II- Cleaner Energy Production and energy Conservation Incentives:
Amends the Internal Revenue Code of 1986 to provide tax extensions and tax deductions of 5 years or greater for the production of renewable energy and energy conservation including facilities, alternative fuel vehicles and vehicle refueling property, energy efficient appliances, nonbusiness energy property, residential energy efficient property, new energy efficient home credit, energy efficient commercial buildings, solar energy/fuel cell and microturbine properties, clean renewable energy bonds, biodiesel and renewable diesel and plug in hybrid cars.
Title III- Strategic Petroleum Reserve (SPR) Modification and Dedication of Revenues to existing Conservation and Energy Research Programs:
Modifies the Strategic Petroleum Reserve to today's refining capabilities by exchanging 10% (70 million barrels) of the reserve's content and dedicates funds received from the exchange of supply and existing SPR funds ($1.4 billion estimated) to existing conservation, energy research/development and energy assistance programs. Specifically ($1.28 billion):
* Advanced Research Projects- $100,000,000
* Wind Energy research- $15,000,000
* Solar Energy Research- $30,000,000
* Low Income Weatherization- $100,000,000
* Low Income Home Energy Assistance Program (LIHEAP)- $100,000,000
* Marine and Hydrokinetic Renewable Energy- $30,000,000
* Advanced Research Vehicles Development- $40,000,000
* Industrial Energy Efficiency R&D- $110,000,00
* Building/Lighting Energy Efficiency R&D- $70,000,000
* Geothermal Energy Development- $30,000,000
* Smart Grid Technology Development- $30,000,000.
* Carbon Capture and Storage- $385,000,000
* Nonconventional Natural Gas Production and Environmental Research- $65,000,000
* Hydrogen Research and Development- $5,000,000
* Energy Storage for Transportation and Electric Power- $170,000,000