The Energy Policy Act of 2005 (Pub.L. 109–58) is a bill passed by the United States Congress on July 29, 2005, and signed into law 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.
|Energy Policy Act of 2005|
|Other short titles|
|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|
|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|Acts repealed||Public Utility Holding Company Act of 1935|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.
|American Recovery and Reinvestment Act of 2009|
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
In Congressional bills, an "authorization" of a discretionary program is a permission to spend money IF money has been appropriated; while an "appropriation" is the provision of funds so it can be spent. The authorizations above will not get carried out if money is never appropriated for them.
The bill amends 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 in 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. This section of the act is controversial; some have questioned whether daylight saving results in net energy savings.
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) 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.
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.
The commercial building tax deductions 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
Percentages permitted under Notice 2006-52 (Effective for property placed in service January 1, 2006 – December 31, 2008)
Percentages permitted under Notice 2008-40 (Effective for property placed in service January 1, 2006 – December 31, 2013)
Percentages permitted under Notice 2012-22
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 review of the conference version of the bill estimated the Act will 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.
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 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.
June 28, 2005, 10:00 a.m. Yeas - 85, Nays - 12
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. Yeas - 74, Nays - 26
|Stage||House of Representatives||Senate|
|Introduction||April 18, 2005||June 11|
|Committed||April 18||June 14|
|Committee Name(s)||Energy and Commerce
Education and the Workforce
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,
|Passage||April 21,||June 28,|
|Conference Demanded/Accepted||July 13||July 1|
|Conference Meetings||July 14 to 24|
|Report Filed||July 27|
|Final Debate||July 28||July 28 to 29 |
Budget Act waived, July 29,
|Concurrence and Passage||July 28,||July 29,|
|Presented to President||August 4|
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 m3) by 2012 to a revised RFS target (passed in December 2007) of 36 billion US gallons (140,000,000 m3) of biofuels production by 2022.Missing or empty
See table in §3 of Part III. Administrative, Procedural, and Miscellaneous
The Bell Bend Nuclear Power Plant was a proposed nuclear power plant, which would have been built on the Bell Bend of the Susquehanna River in Luzerne County, Pennsylvania near the Susquehanna Steam Electric Station.
On October 10, 2008, PPL Bell Bend, LLC, a subsidiary of PPL submitted a Combined Construction and Operating License application (COL) for the plant with the Nuclear Regulatory Commission (NRC) — in time for the potential plant to qualify for production tax credits under the U.S. Energy Policy Act of 2005.NRC review of the 10,000-page COL is expected to follow this schedule:
Phase A - Requests for Additional Information (RAIs) Issued to Applicant already on 3/20/2011.
Phase B - Advanced Final Safety Evaluation Report (SER) without Open Items by 3/2012
Phase C - ACRS Review of Advanced Final SER by 6/2012
Phase D - Final SER by 8/2012The proposed nuclear power plant consists of one European Pressurized Reactor (EPR) steam electric system designed by the French company AREVA. The rated core thermal power will be 4,590 MWt. The rated and design net electrical output is approximately 1,600 MWe. Plants using this technology now are under construction in Finland, France, and China.
The plant would be built by PPL and UniStar Nuclear Energy, a joint enterprise of Constellation and French energy giant EDF.
PPL spokesman Dan McCarthy said in 2008 that the plant would cost about $10 billion to develop, and seven to eight years to construct — beginning operation in 2016 or 2017.
A 2011 estimate gave costs as $13–15 billion and an operational starting date of 2018-20.
PPL filed an initial application for federal loan guarantees by the September 29, 2008 deadline.
PPL intended to submit the second part of the application by the December 19 deadline.
PPL Chief Operating Officer William Spence said, "Without federal loan guarantees, companies like PPL will not be able to secure financing for the substantial cost of building new, advanced-design nuclear energy plants that will help this country achieve challenging limits on carbon dioxide emissions, as well as energy independence".The license application was withdrawn on August 31, 2016.Diesel Emissions Reduction Act
The Diesel Emissions Reduction Act (Pub.L. 111-364), or DERA (as it will be referred to for the remainder of this article), is a part of the Energy Policy Act of 2005 (Pub.L. 109-58). The law appropriated funds to federal and state loan programs to either rebuild diesel-powered vehicle engines to more stringent emission standards or install emission reduction systems, notify affected parties, and share the technological information with countries that have poor air quality standards.Economic dispatch
Economic dispatch is the short-term determination of the optimal output of a number of electricity generation facilities, to meet the system load, at the lowest possible cost, subject to transmission and operational constraints. The Economic Dispatch Problem is solved by specialized computer software which should satisfy the operational and system constraints of the available resources and corresponding transmission capabilities. In the US Energy Policy Act of 2005, the term is defined as "the operation of generation facilities to produce energy at the lowest cost to reliably serve consumers, recognising any operational limits of generation and transmission facilities".The main idea is that, in order to satisfy the load at a minimum total cost, the set of generators with the lowest marginal costs must be used first, with the marginal cost of the final generator needed to meet load setting the system marginal cost. This is the cost of delivering one additional MWh of energy onto the system. The historic methodology for economic dispatch was developed to manage fossil fuel burning power plants, relying on calculations involving the input/output characteristics of power stations.Energy Policy Act
Energy Policy Act may refer to U.S. Federal:
Energy Policy Act of 1992
Energy Policy Act of 2005Federal Energy Regulatory Commission
The Federal Energy Regulatory Commission (FERC) is the United States federal agency that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce and regulates the transportation of oil by pipeline in interstate commerce. FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects.
FERC is composed of five commissioners who are nominated by the U.S. President and confirmed by the U.S. Senate. There may be no more than three commissioners of one political party serving on the commission at any given time.Federal Power Act
The Federal Power Act is a law appearing in Chapter 12 of Title 16 of the United States Code, entitled "Federal Regulation and Development of Power". Enacted as the Federal Water Power Act on June 10, 1920, and amended many times since, its original purpose was to more effectively coordinate the development of hydroelectric projects in the United States. Representative John J. Esch (R-Wisconsin) was the sponsor. Prior to this time and despite federal control of navigable waters and the necessary congressional approval to construct such facilities, Congress had left the regulation of hydroelectric power to the individual states. The first federal legislation broadly dealing with hydroelectric development regarded its competition with navigation usage; with the passage of the Rivers and Harbors Act of 1899 Congress made it illegal to dam navigable streams without a license (or permit) from them. Until 1903, these congressional permits were given away on a 'first come first served' perpetual basis and controlled by the individual states. This would lead to a long debate between competing private and public development interests, and culminate in the act's passage in 1920.The act created the Federal Power Commission (FPC) (now the Federal Energy Regulatory Commission) as the licensing authority for these plants. The FPC regulated the interstate activities of the electric power and natural gas industries, and coordinated national hydroelectric power activities. The Commission's mandate called for it to maintain reasonable, nondiscriminatory and just rates to the consumer. It was ensured that 37.5% of the income derived from hydroelectric power leases given out under the Water Power Act of 1920 went to the state in which the dam was built.
The Federal Energy Regulatory Commission (FERC) regulates under Parts II and III of the Federal Power Act.
In 1935, the law was renamed the Federal Power Act, and the FPC's regulatory jurisdiction was expanded to include all interstate electricity transmission and wholesale power sales (a/k/a "sales for resale"). The Energy Policy Act of 2005 further amended the Federal Power Act to extend FERC's jurisdiction to certain power plant sales as well as the reliability of electric service.Other amendments to the law include the following:
Public Utility Regulatory Policies Act (PURPA)(1978)
Energy Security Act (1980)
Electric Consumers Protection Act of 1986
Energy Policy Act of 1992
America's Water Infrastructure Act of 2018Fractional-horsepower motor
A fractional-horsepower motor (FHP) is an electric motor with a rated output power of 746.9 or 746 Watts or less. There is no defined minimum output, however, it is generally accepted that a motor with a frame size of less than 35mm square can be referred to as a 'micro-motor'.
The term 'fractional' indicates that the motor often has a power rating smaller than one horsepower.Fractional-horsepower electric motors are exempt from the US Energy Policy Act of 2005 and the new EN 60034-30:2009 ruling of European directive 2005/32/EC concerning the efficiency classes of low-voltage three-phase asynchronous motors.Francis R. Fannon
Francis R. "Frank" Fannon is the inaugural holder of the United States Assistant Secretary of State for Energy Resources position, serving in that capacity since May 29, 2018. Previously, Fannon had worked as a partner in the Coefficient Group consulting firm, managing director of BHP’s Corporate Affairs office, Senior Director at Murphy Oil, and various roles in US Senate offices, including key work on the Energy Policy Act of 2005.IEEE 1547
IEEE 1547 (Standard for Interconnecting Distributed Resources with Electric Power Systems) is a standard of the Institute of Electrical and Electronics Engineers meant to provide a set of criteria and requirements for the interconnection of distributed generation resources into the power grid.Joseph T. Kelliher
Joseph Timothy Kelliher (born January 17, 1961) is an American energy executive and former chairman of the Federal Energy Regulatory Commission (FERC).
Kelliher received his bachelor's degree from Georgetown University's School of Foreign Service in 1983. In 1994 he graduated with a Juris Doctor, magna cum laude, from Washington College of Law at American University. Kelliher worked in a private law firm and then on the staff of U.S. Representative Joe Barton, a Republican from Texas. He served as legislative programs director for the American Nuclear Energy Council and represented Public Service Electric and Gas Company (PSEG) until 1995.
In 1995 he went to work for the U.S. House Committee on Commerce as Republican (majority) counsel for electricity, nuclear waste, hydropower, and energy conservation matters, as well as oversight of the U.S. Department of Energy (DOE) and FERC. In that capacity he managed a number of bills that became law. In 1998 Kelliher drafted the first comprehensive electricity legislation that eventually became the electricity provisions of the Energy Policy Act of 2005. After leaving the Hill in 2000, he briefly reenterred the private practice of law, and also served on the Bush/Cheney Presidential Transition Team in late 2000 and early 2001. Kelliher then went to work for DOE where he served as a senior policy advisor to the Secretary of Energy on electricity and other domestic energy issues, including doing staff work for the National Energy Policy Development Group, commonly known as the Cheney Energy Task Force. He played an important role in developing the federal response to the California and Western Power Crisis of 2000-2001. Kelliher also was a principal drafter of the Bush Administration's National Energy Strategy, which guided federal policy from 2001 to 2009.
Kelliher's nomination to FERC was announced by President George W. Bush in October 2001, but he did not receive his hearing in front of the Senate committee until 2003. Kelliher was ultimately confirmed by unanimous voice vote of the Senate and took office on November 20, 2003. On July 9, 2005 he was appointed chairman, replacing Patrick H. Wood III. As Chairman, Kelliher worked to combat market manipulation and price volatility. He created two new divisions at FERC, the Office of Enforcement, to investigate violations of FERC requirements, especially as regard to market manipulation, and the Office of Electric Reliability to review and improve the grid's reliability standards. Under Kelliher's leadership, FERC launched a number of major market manipulation investigations, some of which resulted in significant civil penalties. The nation's first mandatory electric reliability standards were established during his tenure. Kelliher was responsible for efficient implementation of the Energy Policy Act of 2005, the largest grant of regulatory power to FERC since the New Deal in the 1930s. He left FERC in March 2009 to become Executive Vice President for Federal Regulatory Affairs for NextEra Energy, Inc. (FPL Group).List of United States federal environmental statutes
The laws listed below meet the following criteria: (1) they were passed by the United States Congress, and (2) pertain to (a) the regulation of the interaction of humans and the natural environment, or (b) the conservation and/or management of natural or historic resources. They need not be wholly codified in the United States Code.MTBE controversy
Methyl tert-butyl ether (MTBE) is a gasoline additive used as an oxygenate and to raise the octane number. Its use has declined in the United States in response to environmental and health concerns. It has polluted groundwater due to MTBE-containing gasoline being spilled or leaked at gas stations. MTBE spreads more easily underground than other gasoline components due to its higher solubility in water. Cost estimates for removing MTBE from groundwater and contaminated soil range from $1 to $30 billion, including removing the compound from aquifers and municipal water supplies, and replacing leaky underground oil tanks. Who will pay for remediation is controversial. In one case, the cost to oil companies to clean up the MTBE in wells belonging to the city of Santa Monica, California is estimated to exceed $200 million.Some U.S. states have enacted laws to ban MTBE in certain areas. California and New York, which together accounted for 40% of U.S. MTBE consumption, banned usage of the chemical in gasoline, effective 2002 and 2004, respectively. As of 2007, 25 states had issued complete or partial bans on the use of MTBE.The Energy Policy Act of 2005 prompted gasoline refiners to transition to the use of ethanol as a gasoline additive, in place of MTBE.National Appliance Energy Conservation Act
The National Appliance Energy Conservation Act of 1987 (NAECA; Pub.L. 100–12, 101 Stat. 103, enacted March 17, 1987) is a United States Act of Congress that regulates energy consumption of specific household appliances. Though minimum Energy Efficiency Standards were first established by the United States Congress in Part B of Title III of the Energy Policy and Conservation Act (EPCA), those standards were then amended by the National Appliance Energy Conservation Act of 1987, the Energy Policy Act of 1992 and the Energy Policy Act of 2005.All of these laws and regulations have to do with creating mandatory standards that deal with the energy efficiency of certain household appliances. These standards were put in place to ensure that manufacturers were building products that are at the maximum energy efficiency levels are that are technically feasible and economically justified.Nuclear Power 2010 Program
The "Nuclear Power 2010 Program" was launched in 2002 by President George W. Bush in order to restart orders for nuclear power reactors in the U.S. by providing subsidies for a handful of Generation III+ demonstration plants. The expectation was that these plants would come online by 2010, but it was not met.
In March 2017, the leading nuclear-plant maker, Westinghouse Electric Company, filed for bankruptcy due to losing over $9 billion in construction losses from working on two nuclear plants. This loss was partly caused by safety concerns due to the Fukushima disaster, Germany's Energiewende, the growth of solar and wind power, and low natural gas prices.Public Utility Holding Company Act of 1935
The Public Utility Holding Company Act of 1935 (PUHCA), also known as the Wheeler-Rayburn Act, was a law that was passed by the United States Congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each became a single integrated system serving a limited geographic area. Another purpose of PUHCA was to keep utility holding companies that were engaged in regulated businesses from engaging in unregulated businesses.
On August 8, 2005, the Energy Policy Act of 2005 passed both houses of Congress and was signed into law, repealing PUHCA.Renewable Fuel Standard (United States)
The Renewable Fuel Standard (RFS) is an American federal program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. It originated with the Energy Policy Act of 2005 and was expanded and extended by the Energy Independence and Security Act of 2007.Renewable Identification Number
A Renewable Identification Number (or RIN) is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the United States Environmental Protection Agency's Renewable Fuel Standard (RFS) implemented according to the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007.U.S. Climate Change Technology Program
The United States Climate Change Technology Program or CCTP is a multi-agency planning and coordination entity. Its purpose is to accelerate the development and deployment of technologies that can reduce, avoid, or capture and store greenhouse gas emissions. CCTP was established administratively in 2002, authorized by the Energy Policy Act of 2005, and appropriated funds in 2007. Currently, the Department of Energy is designated as the lead agency.Under Secretary of Energy for Science
The Under Secretary for Science is a high-ranking position within the United States Department of Energy. The position was created by the Energy Policy Act of 2005, and the first Under Secretary for Science, Raymond L. Orbach, was sworn in on June 1, 2006. The under secretary is appointed by the President of the United States and confirmed by the United States Senate. In March 2009, Steven E. Koonin was nominated to replace Orbach. Dr. Franklin (Lynn) M. Orr was sworn in as the Under Secretary for Science and Energy on December 17, 2014, and served in this position through the end of the Obama administration. Paul Dabbar is the current under secretary.
The under secretary serves as the Secretary of Energy's Science and Technology advisor, monitors the Department of Energy's research and development programs, and advises the secretary on any gaps or duplications in them. The under secretary advises the secretary on the management and the state of the national laboratories overseen by the department.The under secretary also advises the secretary on the department's educational and training activities. Other aspects include advising the secretary on the coordinating and planning of research activities, advising the secretary on financial assistance for research activities, and carrying out additional duties assigned by the secretary, including supervising and supporting the lower-ranking Assistant Secretaries' research activities. In the words of the Act, the under secretary is required to have "extensive background in science or engineering fields," and to be "well qualified to manage the civilian research and development programs of the Department."