Energy Policy Act of 2005 (H.R. 6)

Summary

Creates policies for energy efficiency, renewable fuels, and different energy sources to make energy secure, affordable, and reliable.

What problem does this solve?

The United States faced challenges with energy security, affordability, and reliability due to dependence on limited energy sources. This law creates programs and incentives to encourage energy efficiency, develop renewable energy, and modernize oil, gas, coal, and nuclear power production.

What does this law do?

Creates the Renewable Fuel Standard (RFS)

Requires gasoline sold in the U.S. to contain a specific volume of renewable fuel, with the required volume increasing annually up to 7.5 billion gallons in 2012.

Exempts hydraulic fracturing from the Safe Drinking Water Act

Excludes the underground injection of fluids for hydraulic fracturing (except for diesel fuels) from regulation under the Safe Drinking Water Act.

Repeals the Public Utility Holding Company Act of 1935 (PUHCA)

Eliminates a major law that regulated electric and gas utility holding companies, transferring some oversight authority to the Federal Energy Regulatory Commission (FERC).

Establishes mandatory electric grid reliability standards

Gives the Federal Energy Regulatory Commission (FERC) authority to certify an Electric Reliability Organization (ERO) to establish and enforce mandatory reliability standards for the bulk-power system.

Extends daylight saving time

Changes the start of daylight saving time to the second Sunday in March and the end to the first Sunday in November, beginning in 2007.

Provides tax incentives for energy production and efficiency

Creates or extends tax credits for renewable electricity production, clean coal facilities, energy-efficient homes and buildings, and alternative fuel vehicles.

Supports new nuclear power plants

Extends the Price-Anderson Act's liability protections for nuclear power plants and authorizes 'standby support' insurance to cover delays for the first new plants.

Updates energy efficiency standards for federal buildings and products

Requires federal agencies to reduce energy consumption in their buildings and mandates procurement of Energy Star or other energy-efficient products.

Strengthens underground storage tank regulations

Requires regular inspections of underground fuel storage tanks, mandates operator training, and prohibits fuel delivery to non-compliant tanks to prevent leaks.

Offers royalty relief for oil and gas production

Provides incentives, including reduced royalty payments, for natural gas production from deep wells in the Gulf of Mexico and for deep water oil and gas production.

Authorizes funding for the Clean Coal Power Initiative

Provides $200 million per year through 2014 for projects that advance the efficiency and environmental performance of coal-based power generation.

Promotes energy development on tribal lands

Establishes programs and grants to assist Indian tribes in developing energy resources and gives tribes greater authority to manage energy projects on their lands.

Who does this affect?

Energy production companies (oil, gas, coal, nuclear, renewable)
Electric utilities and transmission operators
Vehicle manufacturers
American consumers and taxpayers

What is the real world impact?

•

Promotes energy independence and security

Aims to reduce the nation's reliance on foreign oil and create a more stable energy supply by encouraging domestic production across all sectors, including renewables, fossil fuels, and nuclear power.

•

Stimulates domestic energy industries

Provides tax breaks, loan guarantees, and other financial incentives to various energy sectors, including oil, gas, coal, nuclear, and renewables, to encourage investment and job creation in the United States.

•

Addresses environmental concerns while supporting traditional energy

Includes provisions for clean coal technology, renewable fuels, and energy efficiency, but also offers significant support for oil, gas, and nuclear industries, which some criticize as insufficient to combat climate change.

•

Exempts hydraulic fracturing from certain environmental regulations

Excludes hydraulic fracturing, a method for oil and gas extraction, from key provisions of the Safe Drinking Water Act. Critics argue this could endanger drinking water, while supporters say it removes unnecessary burdens.

When does this start?

This law has many different start dates for its various programs, with some taking effect on August 8, 2005, and others phased in over several years.

Repeal of the Public Utility Holding Company Act (PUHCA)

The Public Utility Holding Company Act of 1935 is officially repealed effective February 8, 2006, six months after the law's enactment.

Renewable Fuel Standard Begins

The requirement to blend renewable fuels into gasoline begins in calendar year 2006, with a required volume of 4.0 billion gallons.

Daylight Saving Time Change

The new schedule for daylight saving time, starting on the second Sunday of March and ending on the first Sunday of November, takes effect on March 1, 2007.

Underground Storage Tank Inspections

Requires all underground storage tanks that have not been inspected since December 22, 1998, to be inspected by August 8, 2007.

Federal Building Energy Metering

Requires all federal buildings to be equipped with energy meters by October 1, 2012, to improve energy efficiency and accountability.