Federal Energy Bill Finalized

The federal energy bill wrapped up in the House on July 28 and passed the Senate July 29. The 1,725-page package—including about $11.525 billion in tax incentives through 2015—will then head to the president's desk. President George Bush has been pushing for an omnibus energy bill since the California energy crisis. His administration, however, recommended nearly $4 billion less in tax incentives. "We do everything we could think of to diversify our energy supply and develop new energies that don't rely on fossil fuels," Senator Pete Domenici (R-New Mexico), chair of the Senate Energy and Natural Resources Committee, stated. Senator Jeff Bingaman (D-New Mexico), the committee's ranking member, was less enthusiastic, calling the conference language "not perfect," but a measure that "moves our country in the right direction." He added, "Unfortunately, the bill contains some questionable environmental provisions." For instance, it doesn't do enough to address global warming, Bingaman warned. The final language includes a repeal of the Public Utility Company Holding Act and puts liquefied natural gas terminal siting authority squarely in the hands of the Federal Energy Regulatory Commission. It also provides subsidies for new coal technologies, solar, nuclear power plants, and technologies based on hydrogen fuel. Conferees rejected a national renewables portfolio standard of 10 percent. The bill also increases federal regulatory authority, unlike attempts in recent years to restrict FERC's authority because regions, particularly the Southeast and the Northwest, want control. However, the federal regulatory push to increase competitive markets through "standard market design" died in its tracks ( Circuit , July 22, 2005). On the basis of a preliminary review, the Congressional Budget Office reported July 27 that the bill would increase direct spending by $2.2 billion from 2006 to 2010. It would reduce revenues by $7.9 billion through 2010.

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Federal Energy Bill Finalized

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