The
Energy Policy Act of 2005
(
Pub. L.
Tooltip Public Law (United States)
109?58 (text)
(PDF)
) is a
federal law
signed by President
George W. Bush
on August 8, 2005, at
Sandia National Laboratories
in
Albuquerque, New Mexico
. The act, described by proponents as an attempt to combat growing energy problems, changed
US energy policy
by providing
tax incentives
and loan guarantees for energy production of various types. The most consequential aspect of the law was to greatly increase ethanol production
[2]
to be blended with gasoline. The law also repealed the
Public Utility Holding Company Act of 1935
, effective February 2006.
[3]
Energy Policy Act of 2005
![Great Seal of the United States](//upload.wikimedia.org/wikipedia/commons/thumb/5/5c/Great_Seal_of_the_United_States_%28obverse%29.svg/140px-Great_Seal_of_the_United_States_%28obverse%29.svg.png) |
Other short titles
| - Coal Leasing Amendments Act of 2005
- Electricity Modernization Act of 2005
- Energy Policy Tax Incentives Act of 2005
- Energy Research, Development, Demonstration, and Commercial Application Act of 2005
- Energy Tax Incentives Act of 2005
- Federal Reformulated Fuels Act of 2005
- Indian Tribal Energy Development and Self-Determination Act of 2005
- EPAct 2005
- John Rishel Geothermal Steam Act Amendments of 2005
- National Geological and Geophysical Data Preservation Program Act of 2005
- No Oil Producing and Exporting Cartels Act of 2005
- NOPEC
- Oil Shale, Tar Sands, and Other Strategic Unconventional Fuels Act of 2005
- Price-Anderson Amendments Act of 2005
- Public Utility Holding Company Act of 2005
- SAFE Act
- Set America Free Act of 2005
- Spark M. Matsunaga Hydrogen Act of 2005
- Underground Storage Tank Compliance Act
|
---|
Long title
| An Act to ensure jobs for our future with secure, affordable, and reliable energy.
|
---|
Enacted?by
| the
109th United States Congress
|
---|
Effective
| August 8, 2005
|
---|
|
Public law
| 109-58
|
---|
Statutes at Large
| 119?
Stat.
594
|
---|
|
Acts amended
| Energy Policy Act of 1992
Public Utility Regulatory Policies Act (PURPA) of 1978
|
---|
Acts repealed
| Public Utility Holding Company Act of 1935
|
---|
Titles amended
| 16 U.S.C.: Conservation
42 U.S.C.: Public Health and Social Welfare
|
---|
U.S.C.
sections created
| 42 U.S.C.
ch. 149
§ 15801 et seq.
|
---|
U.S.C. sections amended
| 16 U.S.C.
ch. 46
§?2601 et seq.
42 U.S.C.
ch. 134
§?13201 et seq.
|
---|
|
- Introduced
in the House as
H.R.?6
by
Joe Barton
(
R
?
TX
) on April 18, 2005
- Committee consideration
by
House Energy and Commerce
,
House Education and the Workforce
,
House Financial Services
,
House Agriculture
,
House Resources
,
House Science
,
House Ways and Means
,
House Transportation and Infrastructure
- Passed the House
on April 21, 2005?(249-183,
Roll call vote 132
, via Clerk.House.gov)
- Passed the Senate
on June 28, 2005?(85-12,
Roll call vote 158
, via Senate.gov)
- Reported by the joint conference committee
on July 27, 2005;
agreed to by the House
on July 28, 2005?(275-156,
Roll call vote 445
, via Clerk.House.gov) and by the
Senate
on July 29, 2005?(74-26,
Roll call vote 213
, via Senate.gov)
- Signed into law
by President
George W. Bush
on August 8, 2005
|
|
American Recovery and Reinvestment Act of 2009
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
|
George W. Bush
signing the Energy Policy Act of 2005, which was designed to promote US nuclear reactor construction, through incentives and subsidies, including cost-overrun support up to a total of $2 billion for six new nuclear plants.
[1]
- the Act increases the amount of
biofuel
(usually
ethanol
) that must be mixed with gasoline sold in the United States to 4?billion US gallons (15,000,000?m
3
) by 2006, 6.1?billion US gallons (23,000,000?m
3
) by 2009 and 7.5?billion US gallons (28,000,000?m
3
) by 2012;
[4]
two years later, the
Energy Independence and Security Act of 2007
extended the target to 36?billion US gallons (140,000,000?m
3
) by 2022.
[5]
- it seeks to increase
coal
as an energy source while also reducing air pollution, through authorizing $200 million annually for clean coal initiatives, repealing the current 160-acre (0.65?km
2
) cap on coal leases, allowing the advanced payment of royalties from coal mines and requiring an assessment of coal resources on federal lands that are not national parks;
- it authorizes tax credits for
wind
and other
alternative energy
producers;
- it adds ocean energy sources, including
wave
and
tidal power
for the first time as separately identified, renewable technologies;
- it authorizes $50 million annually over the life of the law for biomass grants;
- it includes provisions aimed at making
geothermal energy
more competitive with fossil fuels in generating electricity;
- it requires the
Department of Energy
to:
- it authorizes the
Department of the Interior
to grant leases for activity that involves the production, transportation or transmission of energy on the
Outer Continental Shelf
lands from sources other than gas and oil (Section 388);
[6]
- it requires all
public
electric utilities
to offer
net metering
on request to their customers;
- it prohibits the manufacture and importation of
mercury-vapor lamp
ballasts after January 1, 2008;
- it provides
tax breaks
for those making
energy conservation
improvements to their homes;
- it provides incentives to companies to
drill for oil
in the
Gulf of Mexico
;
- it exempts oil and gas producers from certain requirements of the
Safe Drinking Water Act
;
- it extends the
daylight saving time
by four to five weeks, depending upon the year (see below);
- it requires that no drilling for gas or oil may be done in or underneath the
Great Lakes
;
- it requires that the Federal Fleet vehicles capable of operating on alternative fuels be operated on these fuels exclusively (Section 701);
- it sets federal reliability standards regulating the electrical grid (done in response to the
2003 North America blackout
);
[7]
[8]
[9]
- it includes nuclear-specific provisions;
[10]
- it extends the
Price-Anderson Nuclear Industries Indemnity Act
through 2025;
- it authorizes cost-overrun support of up to $2 billion total for up to six new
nuclear power plants
;
- it authorizes production tax credit of up to $125 million total a year, estimated at 1.8 US¢/kWh during the first eight years of operation for the first 6.000 MW of capacity,
[11]
consistent with renewables;
- it authorizes loan guarantees of up to 80% of project cost to be repaid within 30 years or 90% of the project's life
[1]
;
- it authorizes $2.95 billion for R&D and the building of an
advanced hydrogen cogeneration reactor
at
Idaho National Laboratory
[2]
;
- it authorizes 'standby support' for new reactor delays that offset the financial impact of delays beyond the industry's control for the first six reactors, including 100% coverage of the first two plants with up to $500 million each and 50% of the cost of delays for plants three through six with up to $350 million each for
[3]
;
- it allows nuclear plant employees and certain contractors to carry firearms;
- it prohibits the sale, export or transfer of nuclear materials and "sensitive nuclear technology" to any state sponsor of terrorist activities;
- it updates tax treatment of decommissioning funds;
Tax reductions by subject area
edit
Change to daylight saving time
edit
The law amended the
Uniform Time Act
of 1966 by changing the start and end dates of
daylight saving time
, beginning in 2007. Clocks were set ahead one hour on the second Sunday of March (March 11, 2007) instead of on the first Sunday of April (April 1, 2007). Clocks were set back one hour on the first Sunday of November (November 4, 2007), rather than on the last Sunday of October (October 28, 2007). This had the net effect of slightly lengthening the duration of daylight saving time.
Lobbyists for this provision included the Sporting Goods Manufacturers Association, the
National Association of Convenience Stores
, and the National
Retinitis Pigmentosa
Foundation Fighting Blindness.
Lobbyists against this provision included the
U.S. Conference of Catholic Bishops
, the
United Synagogue of Conservative Judaism
, the National
Parent-Teacher Association
, the Calendaring and Scheduling Consortium, the
Edison Electric Institute
, and the
Air Transport Association
.
[15]
This section of the act is controversial; some have questioned whether daylight saving results in net energy savings.
[16]
Commercial building deduction
edit
The Act created the Energy Efficient
Commercial Buildings Tax Deduction
, a special financial incentive designed to reduce the initial cost of investing in
energy-efficient building
systems via an accelerated tax deduction under section §179D of the Internal Revenue Code (IRC)
[4]
Many building owners are unaware that the [Policy Act of 2005] includes a tax deduction (§179D) for investments in "energy efficient commercial building property" designed to significantly reduce the heating, cooling, water heating and interior lighting cost of new or existing commercial buildings placed into service between January 1, 2006 and December 31, 2013.
§179D includes full and partial tax deductions for investments in energy efficient commercial building that are designed to increase the efficiency of energy-consuming functions. Up to $.60 for lighting, $.60 for HVAC and $.60 for building envelope, creating a potential deduction of $1.80 per sq/ft. Interior lighting may also be improved using the Interim Lighting Rule, which provides a simplified process to earn the Deduction, capped at $0.30-$0.60/square foot. Improvements are compared to a baseline of
ASHRAE
2001 standards.
[17]
To obtain these benefits the facilities/energy division of a business, its tax department, and a firm specializing in EPAct 179D deductions needed to cooperate. IRS mandated software had to be used and an independent 3rd party had to certify the qualification. For municipal buildings, benefits were passed through to the primary designers/architects in an attempt to encourage innovative municipal design.
The Commercial Buildings Tax Deduction expiration date had been extended twice, last by the
Energy Improvement and Extension Act of 2008
. With this extension, the CBTD could be claimed for qualifying projects completed before January 1, 2014.
[17]
[18]
The commercial building tax deductions
[19]
could be used to improve the payback period of a prospective energy improvement investment. The deductions could be combined by participating in demand response programs where building owners agree to curtail usage at peak times for a premium. The most common qualifying projects were in the area of lighting.
Summary of Energy Savings Percentages Provided by IRS Guidance
[20]
Percentages permitted under Notice 2006-52
(Effective for property placed in service January 1, 2006 ? December 31, 2008)
- Interior Lighting Systems 16⅔%,
- Heating, Cooling, Ventilation, and Hot Water Systems 16⅔%,
- Building Envelope 16⅔%.
Percentages permitted under Notice 2008-40
(Effective for property placed in service January 1, 2006 ? December 31, 2013)
- Interior Lighting Systems 20%,
- Heating, Cooling, Ventilation, and Hot Water Systems 20%,
- Building Envelope 10%.
Percentages permitted under Notice 2012-22
- Interior Lighting Systems 25%,
- Heating, Cooling, Ventilation, and Hot Water Systems 15%,
- Building Envelope 10%.
Effective date of Notice 2012-22 ? December 31, 2013; if §179D is extended beyond December 31, 2013, is also effective (except as otherwise provided in an amendment of §179D or the guidance thereunder) during the period of the extension.
The
Congressional Budget Office
(CBO) review of the conference version of the bill estimated the Act would increase direct spending by $2.2 billion over the 2006?2010 period, and by $1.6 billion over the 2006?2015 period. The CBO did not attempt to estimate additional effects on discretionary spending. The CBO and the Joint Committee on Taxation estimated that the legislation would reduce revenues by $7.9 billion over the 2005?2010 period and by $12.3 billion over the 2005?2015 period.
[
citation needed
]
The collective reduction in national consumption of energy (gas and electricity) is significant for home heating. The Act provided gible financial incentives (tax credits) for average homeowners to make environmentally positive changes to their homes. It made improvements to home energy use more affordable for walls, doors, windows, roofs, water heaters, etc. Consumer spending, and hence the national economy, was abetted. Industry grew for manufacture of these environmentally positive improvements. These positive improvements have been near and long-term in effect.
The collective reduction in national consumption of oil is significant for automotive vehicles. The Act provided tangible financial incentives (tax credits) for operators of hybrid vehicles. It helped fuel competition among auto makers to meet rising demands for
fuel-efficient vehicles
. Consumer spending, and hence the national economy, was abetted. Dependence on imported oil was reduced. The national trade deficit was improved. Industry grew for manufacture of these environmentally positive improvements. These positive improvements have been near and long-term in effect.
- The
Washington Post
contended that the spending bill was a broad collection of subsidies for United States energy companies; in particular, the nuclear and oil industries.
[21]
- Speaking for the National Republicans for Environmental Protection Association, President Martha Marks said that the organization was disappointed in the law because it did not support conservation enough, and continued to subsidize the well-established oil and gas industries that didn't require subsidizing.
[22]
- The law did not include provisions for drilling in the
Arctic National Wildlife Refuge
(ANWR); some Republicans claimed "access to the abundant
oil reserves
in ANWR would strengthen America's energy independence without harming the environment."
[23]
- Senator
Hillary Clinton
criticized Senator
Barack Obama
's vote for the bill in the
2008 Democratic Primary
.
[24]
The Act was voted on and passed twice by the
United States Senate
, once prior to
conference committee
, and once after. In both cases, there were numerous senators who voted against the
bill
.
John McCain
, the
Republican Party
nominee for
President of the United States
in the
2008 election
voted against the bill. Democrat
Barack Obama
, President of the United States from January 2009 to January 2017, voted in favor of the bill.
Provisions in the original bill that were not in the act
edit
To remove from 18 CFR Part 366.1 the definitions of "electric utility company" and
exempt wholesale generator
(EWG), that an EWG is not an electric utility company.
[3]
Preliminary Senate vote
edit
June 28, 2005, 10:00?a.m. Yeas - 85, Nays - 12
Conference committee
edit
The bill's conference committee included 14 Senators and 51 House members. The senators on the committee were: Republicans Domenici, Craig, Thomas, Alexander, Murkowski, Burr, Grassley and Democrats Bingaman, Akaka, Dorgan, Wyden, Johnson, and Baucus.
July 29, 2005, 12:50?p.m.
[25]
Yeas - 74, Nays - 26
Stage
|
House of Representatives
|
Senate
|
Initial Debate
|
Introduction
|
April 18, 2005
|
June 11
|
Committed
|
April 18
|
June 14
|
Committee Name(s)
|
Energy and Commerce
Education and the Workforce
Financial Services
Agriculture
Resources
Science
Ways and Means
Transportation and Infrastructure
|
|
Committee Stage
|
April 18 to 19
|
|
Committee Report
|
April 19
|
|
Floor Debate
|
April 19 to 21
|
June 14 to 23
Cloture invoked June 23,
[26]
|
Passage
|
April 21,
[27]
|
June 28,
[28]
|
Conference Stage
|
Conference Demanded/Accepted
|
July 13
|
July 1
|
Conference Meetings
|
July 14 to 24
|
Report Filed
|
July 27
|
Final Passage
|
Final Debate
|
July 28
|
July 28 to 29
Budget Act waived, July 29,
[29]
|
Concurrence and Passage
|
July 28,
[30]
|
July 29,
[31]
|
Presented to President
|
August 4
|
Signed
|
August 8
|
- ^
Quiggin, John (November 8, 2013).
"Reviving nuclear power debates is a distraction. We need to use less energy"
.
The Guardian
.
- ^
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.
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a
b
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(PDF)
.
ferc.gov
. April 24, 2006. Archived from
the original
(PDF)
on December 20, 2016
. Retrieved
April 12,
2014
.
- ^
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(PDF)
. Archived from
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(PDF)
on March 3, 2011
. Retrieved
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2014
.
{{
cite web
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- ^
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"Biofuels' Bright Future"
(PDF)
.
Forbes
. emerging-markets.com.
In December 2007, with the imminent arrival of $100-per-
barrel oil
, the U.S. Congress swiftly acted to upgrade the 2005 biofuels initiative and RFS from its original target of 7?billion US gallons (26,000,000?m
3
) by 2012 to a revised
RFS
target (passed in December 2007) of 36?billion US gallons (140,000,000?m
3
) of biofuels production by 2022.
- ^
"Sec. 388"
(PDF)
. U.S.LibraryofCongress. August 8, 2005. p.?152
. Retrieved
July 11,
2008
.
- ^
Ken Belsen and Matthew L. Wald, " ’03 Blackout Is Recalled, Amid Lessons Learned",
The New York Times
, August 13, 2008, found at
The New York Times website
. Retrieved August 27, 2008.
- ^
David Freedlander, "It could happen again: On fifth anniversary of blackout, nation still vulnerable",
A.M. N.Y.
, August 12, 2008. See response at
Letter to the Editor
[
permanent dead link
]
. Retrieved August 27, 2008.
- ^
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Archived
2008-11-25 at the
Wayback Machine
. Retrieved August 27, 2008.
- ^
Congress Passes First Comprehensive Energy Bill in 13 Years
, Nuclear Energy Institute, 2005
- ^
UtiliPoint
Issue Alert
Archived
2007-09-26 at the
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:
New Nuclear Plants Coming to the United States?
, January 17, 2007
- ^
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(PDF)
. Earthworks' Oil and Gas Accountability Project. Archived from
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. Retrieved
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.
{{
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: CS1 maint: multiple names: authors list (
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)
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"What's in the Oil Shale and Tar Sands Leasing Programmatic EIS"
. Oil Shale and Tar Sands Leasing Programmatic EIS Information Center. Archived from
the original
on July 3, 2007
. Retrieved
July 10,
2007
.
- ^
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Archived
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-
PDF
, 29kB
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"Dim-witted proposal for daylight time"
.
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.
- ^
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"Does extending daylight saving time save energy? Evidence from an Australian experiment"
(PDF)
. CSEM WP 163. University of California Energy Institute
. Retrieved
June 24,
2009
.
- ^
a
b
DiLouie, Craig.
"NEMA website dedicated to lighting aspects of the Commercial Buildings Tax Deduction"
.
National Electrical Manufacturers Association
(NEMA)
. Retrieved
April 5,
2010
.
- ^
Goulding, Charles.
"EPAct Section 179D"
.
- ^
"§179D Commercial Buildings Energy Efficiency Tax Deduction"
.
- ^
"Internal Revenue Bulletin: 2012-17"
.
See table in §3 of Part III. Administrative, Procedural, and Miscellaneous
- ^
Grunwald, Michael and Juliet Eilperin. "
Energy Bill Raises Fears About Pollution, Fraud Critics Point to Perks for Industry
."
The Washington Post
. July 30, 2005.
- ^
"
Bush signs $12.3 billion energy bill into law
."
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. August 8, 2005.
- ^
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Small Group of House Republicans Derails ANWR Drilling
Archived
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." Washington, DC:
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- ^
Zito, Salena (March 15, 2008).
"Clinton preaches to her choir"
.
Pittsburgh Tribune-Review
.
[
permanent dead link
]
- ^
Votes from all Senators
- ^
92-4 senate.gov
- ^
249-183 clerk.house.gov
- ^
85-12 senate.gov
- ^
71-29 senate.gov
- ^
275-156 clerk.house.gov
- ^
74-26 senate.gov
Wikisource
has original text related to this article:
- Clean Fuels Ohio
- This site focuses on alternative fuels as well as alt-fuels incentives created by the Energy Policy Act of 2005.