H.R.6 E.N.R.: The Energy Policy Act of 2005, as enacted (also referred to as Public Law 109-190) is intended primarily to increase the supply of energy, largely by providing subsidies, but also by setting standards that would increase the use of certain types of energy and energy-saving technologies. The energy sources and technologies promoted by the law include some that are climate-friendly and some whose use will result in large emissions of carbon dioxide (CO2). Among the provisions of the law specifically mentioning greenhouse gases (GHGs) are those that promote the deployment of GHG-intensity-reducing technologies, both domestically and in developing countries; authorize programs to promote the development and deployment of technologies that would capture and sequester CO2 emissions; and commission a National Academy of Sciences study of fuel cell technologies. Among the provisions that do not specifically mention GHGs, but would nevertheless promote climate-friendly technologies and activities are provisions that:
- Establish a national biofuel standard mostly in the form of ethanol for gasoline. This will increase the biofuels from 4 billion gallons per year in 2006 to 7.5 billion gallons per year in 2012.
- Increase the requirement for the purchase of renewable power by the federal government to 3% in 2007 and 7.5% in 2013.
- Establish new efficiency standards for 15 new commercial and residential products.
- Extend, through the end of 2007, the renewable electricity production credit of 1.9¢ per kWh during the first ten years of operation.
- Create a new tax credit for residential investments in solar power and fuel cell systems of 30% at an estimated $31 million.
- Increase the credit for commercial solar installations from 10% to 30% for two years at an estimated $222 million.
- Provide for investment tax credits for improving residential energy efficiency at an estimated $556 million.
- Allow for deductions for commercial buildings that cut their energy consumption by 50% for an estimated $243 million.
- Provide credits to manufacturers of energy efficient appliances ($180 million) and for building contractors that meet certain efficiency standards ($28 million).
- Offer tax incentives for the purchase of alternative fuel vehicles beginning in 2006 for an estimated cost of $874 million.
- Provide a 30% credit to alternative refueling installations at both residential and commercial properties.
- Authorize a $200 million annual clean coal initiative to go primarily towards coal gasification projects.
- Create three new investment tax credits for clean coal facilities with an expenditure cap of $1.612 billion. (20% for industrial gasification projects, 20% for IGCC, 15% for other electricity producing projects)
- Authorize a $1.25 billion fund for the Next Generation Nuclear Plant at Idaho National Laboratory to produce both electricity and/or hydrogen.
- Provide a tax credit of 1.8¢ per kWh for new nuclear power facilities during their first eight years of operation.
- Provide financial support for to up to six new nuclear power reactors in case of unforeseen construction delays.
Action: 8/8/05: Signed into law as Public Law 109-190.