Order Code RL34135
Omnibus Energy Efficiency and Renewable
Energy Legislation: A Side-by-Side Comparison of
Major Provisions in House-Passed H.R. 3221 with
Senate-Passed H.R. 6
Updated September 4, 2007
Fred Sissine, Coordinator
Specialist in Energy Policy
Resources, Science, and Industry Division

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Omnibus Energy Efficiency and Renewable Energy
Legislation: A Comparison of Major Provisions in
House-Passed H.R. 3221 with Senate-Passed H.R. 6
Summary
In the first session of the 110th Congress, the House and the Senate passed two
markedly different versions of omnibus energy efficiency and renewable energy
legislation. This report compares major provisions in House-passed H.R. 3221 and
Senate-passed H.R. 6. Key legislative challenges remain. First, there are significant
differences between the two bills. Second, because the House and Senate have
passed different measures, further action will be required in at least one chamber
before a conference committee could be arranged. Third, concerns about certain oil
and natural gas provisions, and the lack of measures to support increased oil and gas
production, have led the Administration to threaten to veto each bill. Highlights of
major provisions include:
! Renewable Fuels Standard (RFS). The Senate bill would set a
modified standard that starts at 8.5 billion gallons in 2008 and rises
to 36 billion gallons by 2022. The House bill has no RFS provision.
! Corporate Average Fuel Economy (CAFE). The Senate bill would
set a target of 35 miles per gallon for the combined fleet of cars and
light trucks by model year 2020. The House bill has no CAFE
provision.
! Renewable Energy Portfolio Standard (RPS). The House bill would
set a minimum standard that would start at 2.75% in 2010 and rise
steadily to a peak of 15% in 2020. The Senate bill has no RPS
provision.
! Offshore Oil and Gas Royalties. The House bill would establish
royalties, or alternative payments, for certain federal leases
established in 1998 and 1999. The Senate bill has no provision.
! Repeal of Oil and Gas Tax Incentives. The House bill would obtain
tax revenue offsets by reducing subsidies for oil and natural gas
production. The Senate bill has no provision.
! Renewable Energy Electricity Production Tax Credit (PTC). The
House bill would extend the PTC for four years, and expand it to
include some additional resources. The Senate bill has no provision.
! Other Tax Incentives. The House bill would extend several
investment tax credits covering solar energy and energy efficiency
in residential and commercial sectors. The Senate bill has no
provision.
! Energy Efficiency Equipment Standards. Key differences involve
standards for residential refrigerators, freezers, refrigerator-freezers,
metal halide lamps, and commercial walk-in coolers and freezers.
! Loan Guarantees. The House bill would give new loan authority to
a wider variety of projects. The Senate bill would prevent
appropriations acts from limiting the use of non-appropriated funds.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Senate Action on H.R. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
House Action on H.R. 3221 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Challenges and Next Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Comparing the House and Senate Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Appendix A. House-Passed Version of H.R. 3221, Division A: “New
Direction for Energy Independence, National Security, and Consumer
Protection Act” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Key Provisions Adopted and Absent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Title I — Green Jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Title II — The International Climate Cooperation Re-engagement
Act of 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Subtitle A — U.S. Policy on Global Climate Change . . . . . . . . . . . . . 30
Subtitle B — Assistance for Clean and Efficient Energy
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Subtitle C — International Clean Energy Foundation . . . . . . . . . . . . . 30
Title III — Small Energy-Efficient Businesses . . . . . . . . . . . . . . . . . . . . . . 31
Title IV — Science and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Subtitle A — Advanced Research Projects Agency — Energy . . . . . . 31
Subtitle B — Marine Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . 31
Subtitle C — Geothermal Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Subtitle D — Solar Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Subtitle E — Biofuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Subtitle F — Carbon Capture and Storage . . . . . . . . . . . . . . . . . . . . . 32
Subtitle G — Global Change Research . . . . . . . . . . . . . . . . . . . . . . . . 32
Subtitle H — H-Prize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Title V — Agriculture Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Title VI — Carbon-Neutral Government Act . . . . . . . . . . . . . . . . . . . . . . . 33
Subtitle A — Federal Government Inventory and
Management of Greenhouse Gas (GHG) Emissions . . . . . . . . . . 33
Subtitle B — Federal Government Energy Efficiency . . . . . . . . . . . . . 33
Subtitle C — Telework Enhancement . . . . . . . . . . . . . . . . . . . . . . . . . 33
Title VII — Natural Resources Committee Provisions . . . . . . . . . . . . . . . . 34
Subtitle A — Energy Policy Act of 2005 Reforms . . . . . . . . . . . . . . . 34
Subtitle B — Federal Energy Public Accountability, Integrity, and
Public Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Subtitle C — Alternative Energy and Efficiency . . . . . . . . . . . . . . . . . 35
Subtitle D — Carbon Capture and Climate Change Mitigation . . . . . 35
Subtitle E — Royalties Under Offshore Oil and Gas Leases . . . . . . . . 36
Subtitle F — Additional Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Title VIII — Transportation and Infrastructure . . . . . . . . . . . . . . . . . . . . . . 36
Subtitle A — Department of Transportation (DOT) . . . . . . . . . . . . . . 36

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Subtitle B — Highways and Transit . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Subtitle C — Railroad and Pipeline Transportation . . . . . . . . . . . . . . 37
Subtitle D — Maritime Transportation . . . . . . . . . . . . . . . . . . . . . . . . 37
Subtitle E — Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Subtitle F — Public Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Subtitle G — Water Resources and Emergency Management
Preparedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Title IX — Energy and Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Subtitle A — Promoting Energy Efficiency . . . . . . . . . . . . . . . . . . . . 38
Subtitle B — Smart Grid Facilitation . . . . . . . . . . . . . . . . . . . . . . . . . 40
Subtitle C — Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Subtitle D — Renewable Fuel Infrastructure and International
Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Subtitle E — Advanced Plug-In Hybrid Vehicles and Components . . 40
Subtitle F — Availability of Critical Energy Information . . . . . . . . . . 40
Subtitle G — Natural Gas Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Subtitle H — Federal Renewable Portfolio Standard (RPS) . . . . . . . . 41
Subtitle I — Large and Small Scale Hydropower . . . . . . . . . . . . . . . . 41
H.R. 3221, Division B: “Renewable Energy and Energy Conservation
Act of 2007” (formerly H.R. 2776) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Title XI — Production Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Title XII — Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Subtitle A — Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Subtitle B — Other Conservation Provisions . . . . . . . . . . . . . . . . . . . 42
Title XIII — Revenue Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Subtitle A — Denial of Oil and Gas Tax Benefits . . . . . . . . . . . . . . . . 42
Subtitle B — Clarification of Eligibility for Certain Fuel Credits . . . . 42
Title XIV — Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Subtitle A — Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Subtitle B — Application of Certain Labor Standards on Projects
Financed Under Tax Credit Bonds . . . . . . . . . . . . . . . . . . . . . . . 42
Appendix B. Senate-Passed Version of H.R. 6: “Renewable Fuels,
Consumer Protection, and Energy Efficiency Act” . . . . . . . . . . . . . . . . . . . 43
Key Provisions Adopted and Rejected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Title I — Biofuels for Energy Security and Transportation . . . . . . . . . . . . . 44
Subtitle A — Renewable Fuel Standard . . . . . . . . . . . . . . . . . . . . . . . 44
Subtitle B — Renewable Fuels Infrastructure . . . . . . . . . . . . . . . . . . . 44
Subtitle C — Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Subtitle D — Environmental Safeguards . . . . . . . . . . . . . . . . . . . . . . . 44
Title II — Energy Efficiency Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Subtitle A — Promoting Advanced Lighting Technologies . . . . . . . . 45
Subtitle B — Expediting New Energy Efficiency Standards . . . . . . . . 45
Subtitle C — Promoting High Efficiency Vehicles, Advanced
Batteries, and Energy Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Subtitle D — Setting Energy Efficiency Goals . . . . . . . . . . . . . . . . . . 46
Subtitle E — Promoting Federal Leadership in Energy
Efficiency and Renewable Energy . . . . . . . . . . . . . . . . . . . . . . . . 46
Subtitle F — Assisting State and Local Governments in Energy
Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

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Subtitle G — Marine and Hydrokinetic Renewable Energy
Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Title III — Carbon Capture and Storage R&D and Demonstration . . . . . . . 47
Title IV — Cost-Effective and Environmentally Sustainable Public
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Subtitle A — Public Buildings Cost Reduction . . . . . . . . . . . . . . . . . . 47
Subtitle B — Photovoltaic System for DOE Headquarters . . . . . . . . . 47
Subtitle C — High Performance Green Buildings . . . . . . . . . . . . . . . . 47
Title V — Corporate Average Fuel Economy Standards . . . . . . . . . . . . . . . 48
Title VI — Price Gouging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Title VII — Energy Diplomacy and Security . . . . . . . . . . . . . . . . . . . . . . . . 48
Title VIII — Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Senate Amendment 1704 (Energy Tax Provisions) . . . . . . . . . . . . . . . . . . . . . . . 49
Part I — Advanced Electricity Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . 49
Part II — Carbon Dioxide Sequestration . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Part III — Domestic Fuel Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Part IV — Advanced Technology Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . 49
Part V — Conservation and Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . 50
Part VI — Accountability Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Part VII — Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Clean Renewable Energy Incentives Act (S. 1531) . . . . . . . . . . . . . . . . . . . . . . . 50
Title I — Tax Incentives for Energy Conservation and Exploration . . . . . . 50
Title II — Investment Tax Credit with Respect to Solar Energy
Property and Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Subtitle A — Solar Energy Property . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Subtitle B — Promotion of Solar Manufacturing in the
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
List of Tables
Table 1. List of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6 . . . 6

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Omnibus Energy Efficiency and Renewable
Energy Legislation: A Comparison of Major
Provisions in House-Passed H.R. 3221 with
Senate-Passed H.R. 6
Introduction
In the first session of the 110th Congress, the House and the Senate passed two
markedly different versions of omnibus energy efficiency and renewable energy
legislation.
The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007, passed the Senate on June 21, 2007.
The key provisions of the Senate-passed H.R. 6 are appliance efficiency standards,
an increase of the renewable fuel standard (RFS) to 36 billion gallons by 2022, and
an increase of the combined corporate average fuel economy (CAFE) standards to 35
miles per gallon (mpg) by 2020. Tax provisions and a renewable energy portfolio
standard (RPS) were not included.
The House passed H.R. 3221 on August 4, 2007. H.R. 3221 has two divisions.
Division A contains the New Direction for Energy Independence, National Security,
and Consumer Protection Act, which has nine titles An adopted floor amendment
(H.Amdt. 748) added a 15% renewable portfolio standard (RPS). Division B, the
Renewable Energy and Energy Conservation Tax Act of 2007, contains the House-
approved version of H.R. 2776. It adds four titles to H.R. 3221 that include a four-
year extension of the renewable electricity production tax credit and other efficiency
and renewables incentives.
This report compares the major provisions of the House version of H.R. 3221,
and the Senate version of H.R. 6. (For more details on the provisions in these two
bills, see the appendices to this report. For more details on the legislation that led to
the omnibus bills, see CRS Report RL33831, Energy Efficiency and Renewable
Energy Legislation in the 110th Congress. For more details on the tax provisions, see
CRS Report RL33578, Energy Tax Policy: History and Current Issues.)
The following analysts in the CRS Resources, Science, and Industry Division
contributed to this report:
! Amy Abel, transmission and electric utilities, 7-7239
! Robert Bamberger, fuel economy standards, 7-7240
! Lynne Corn, wildlife and habitats, 7-7267
! Susan Fletcher, international climate cooperation, 7-7231

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CRS-2
! Peter Folger, carbon storage, 7-1517
! Mark Holt, loan guarantees, 7-1704
! Marc Humphries, oil and natural gas royalties, 7-7264
! Nic Lane, marine energy, 7-7905
! Salvatore Lazzari, energy taxes, 7-7825
! Robert Pirog, energy prices, 7-6847
! Randy Schnepf, agriculture-based energy, 7-4277
! Brent Yacobucci, biofuels, 7-9662
Senate Action on H.R. 6
The Senate version of H.R. 6, the proposed Renewable Fuels, Consumer
Protection, and Energy Efficiency Act of 2007, was derived primarily from S. 1419,
which, in turn, was composed from four major bills: the Energy Savings Act (S.
1321), the Public Buildings Cost Reduction Act (S. 992), the Ten-in-Ten Fuel
Economy Act (S. 357), and the Energy Diplomacy and Security Act (S. 193). A
summary of the Senate-passed version of H.R. 6 is presented in CRS Report
RL33831. That report also contains descriptions of all the bills that composed the
Senate version of H.R. 6.
An RPS amendment (S.Amdt. 1537) was introduced during Senate floor action
on the proposed substitute (S.Amdt. 1502) to H.R. 6. The RPS amendment
proposed setting a target of 15% by 2020. No action was taken on S.Amdt. 1537
before a successful cloture vote on the substitute. That cloture vote caused S.Amdt.
1537 to be ruled non-germane, and it fell from consideration.
A package of tax provisions (S.Amdt. 1704) was considered during Senate floor
action on the proposed substitute to H.R. 6. The proposed tax package amendment
included oil and natural gas revenue offset provisions, as well as incentives for
renewable energy and energy efficiency. The proposed revenue offsets were similar
to, but more extensive than, the offsets proposed in Title XIII, Subtitle A, of H.R.
3221. However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture motion to limit
debate. (For more details, see CRS Report RL33578, Energy Tax Policy: History and
Current Issues.)
House Action on H.R. 3221
H.R. 3221 has two divisions. Division A contains the New Direction for Energy
Independence, National Security, and Consumer Protection Act, which has nine titles
that represent the integration of H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R.
2389, H.R. 2420, H.R. 2635, H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2847, and a
draft bill by the Committee on Energy and Commerce. Division B, the Renewable
Energy and Energy Conservation Tax Act of 2007, contains the House-approved
version of H.R. 2776, and adds four titles to H.R. 3221. A summary of the bill is
presented in CRS Report RL33831, Energy Efficiency and Renewable Energy
Legislation in the 110th Congress. That report also contains descriptions of all the
bills that composed the House-passed version of H.R. 3221.

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CRS-3
Challenges and Next Steps
One challenge involves key differences between the provisions of the two bills.
There are several provisions where the two bills are very similar. One example is
energy efficiency standards, where the House and Senate provisions have more
similarities than differences. However, especially among the more controversial
provisions, many either have major differences or the provision appears only in one
bill. One key challenge will be to resolve such differences.
A second challenge involves additional action that will be required to get a bill
to conference committee. Because the House and Senate have passed different
measures, constitutionally-required congressional procedures prevent the two bills
(H.R. 3221 and H.R. 6) from going to conference in their current form. Further
action will be needed on at least one of the two bills in at least one of the two
chambers. For example, one option could be that the Senate takes up H.R. 3221,
amends it however it wishes, and then pass the bill as the Senate version of H.R.
3221. Then, a conference could be held to resolve any remaining differences
between the two versions of H.R. 3221.1
A third challenge involves opposition to the bills expressed by the
Administration. In a June 12, 2007, Statement of Administration Policy on H.R. 6,
the Administration expressed several points of opposition to the Senate bill.2 Its
primary concerns involved issues related to oil and natural gas. The Administration
stated that the bill “does nothing to increase domestic supplies of oil and natural gas.”
Moreover, it threatened to veto the bill if it retained a price gouging provision, which
it feels would lead to problematic gasoline price controls. Another veto threat was
focused on the proposal to subject foreign oil cartels to the jurisdiction of U.S. courts.
Additional concerns were identified. One concern focused on the explicit 35 mpg
fuel economy target in the CAFE provision and the proposal to set standards for
medium- and heavy-duty trucks. For the RFS provision, the Administration strongly
urged expansion to include fossil-based alternative fuels. Regarding loan guarantees,
the Administration stated opposition to loosening of controls over program size and
“special” treatment that would allow guarantees for biofuels projects to be increased
to from 80% to cover up to 100% of project costs.
In an August 3, 2007, Statement of Administration Policy on H.R. 2776 and
H.R. 3221, the Administration expressed several points of opposition to the House
bill.3 Its primary concerns were focused on oil and natural gas. It stated that because
the two bills “would lead to less domestic oil and gas production, higher energy
costs, and higher taxes, the President’s senior advisors would recommend that he
1 For more information about procedural requirements to bring a bill to conference, see CRS
Report 96-708, Conference Committee and Related Procedures: An Introduction, by Betsy
Palmer.
2 Executive Office of the President. Office of Management and Budget. Statement of
Administration Policy on H.R. 6. June 13, 2007. 3 p.
3 Executive Office of the President. Office of Management and Budget. Statement of
Administration Policy on H.R. 2776 and H.R. 3221. August 3, 2007. 2 p.

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CRS-4
veto these bills.” Other concerns included the proposed repeal of the manufacturing
tax deduction for the oil and gas industry, the application of royalty requirements for
certain offshore oil and gas leases issued in 1998 and 1999, increased authorization
for clean renewable energy bonds, and expansion of the Davis-Bacon prevailing
wage requirements.
Comparing the House and Senate Bills
This report compares the major provisions of the House-passed version of H.R.
3221 and the Senate-passed version of H.R. 6. Table 1 shows a list of the major
provisions that are reviewed in this report. Some provisions are contained wholly
under one title or subtitle. For example, the RPS provision in the House bill is
contained wholly under Subtitle H of Title IX. However, some provisions are
scattered throughout several titles or subtitles. For example, in the House bill, the
most extensive provision for loan guarantees is found in Title IX, Subtitle C, but
additional provisions for loan guarantees appear under Titles IV (Subtitle E), V, IX
(Subtitle A) and IX (Subtitle E). Similarly, Senate provisions for loan guarantees
appear in both Title I (Subtitle B), and Title II (Subtitle C).

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CRS-5
Table 1. List of Provisions
Provision
Category
Location
1
Renewable Fuel Standard
regulation
page 6
2
Corporate Average Fuel Economy (CAFE)
regulation
page 7
3
Renewable Energy Portfolio Standard (RPS)
regulation
page 8
4
Royalties Under Offshore Oil and Gas Leases
regulation
page 9
5
Repeal of Oil and Natural Gas Tax Incentives
tax incentives
page 10
6
Renewable Energy Production Tax Credits
tax incentives
page 12
7
Transportation Tax Incentives
tax incentives
page 13
8
Energy Efficiency Tax Incentives
tax incentives
page 14
9
Energy Efficiency - Equipment Standards
regulation
page 15
10
Loan Guarantees
loans
page 16
11
Energy Efficiency - Federal
regulation
page 17
12
Energy Efficiency - Congressional
regulation
page 18
13
Energy Efficiency - Vehicle Transportation
authorization
page 18
14
Renewable Fuel Infrastructure
authorization
page 19
15
Rail, Sea, and Air Transportation
authorization
page 20
16
International Energy Cooperation
treaties
page 21
17
International Climate Cooperation
treaties
page 22
18
Carbon Storage
authorization
page 23
19
Carbon Neutral Government
authorization
page 24
20
Energy Efficiency - Buildings
authorization
page 24
21
Energy Efficiency - State and Local
authorization
page 25
22
Energy Efficiency - Small Business
authorization
page 25
23
Green Jobs
authorization
page 25
24
Transmission/Smart Grid
authorization
page 26
25
Wind Impacts on Wildlife
regulation
page 26
26
Renewable Energy R&D
authorization
page 27
27
Hydrogen Award
authorization
page 27
28
Price Gouging
regulation
page 27
29
Agriculture Energy
authorization
page 28
30
ARPA-E
authorization
page 28

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CRS-6
Table 2. Comparison of House-Passed H.R. 3321 and Senate-Passed H.R. 6
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Renewable Fuel Standard (RFS)
No provision.
Title I, Subtitle A. This Subtitle would extend and
No House provision.
increase the renewable fuel standard (RFS) set by
P.L. 109-58. The RFS requires minimum annual
levels of renewable fuel in gasoline. The current
standard is 4.7 billion gallons for 2007. The
modified standard would start at 8.5 billion gallons
in 2008 and rise to 36 billion gallons in 2022.
Starting in 2016, an increasing portion of the
requirement would have to be met with advanced
biofuels, defined as cellulosic ethanol and other
biofuels derived from feedstocks other than corn
starch. Renewable fuels produced from new
biorefineries would be required to achieve at least
a 20% reduction in life cycle greenhouse gas
emissions relative to life cycle emissions from
gasoline. A voluntary labeling program would be
established for renewable fuels, based on life cycle
greenhouse gas emissions. Fuel produced from
biorefineries that displace more than 90% of the
fossil fuels used in a biofuel production facility
would qualify for additional credits under the RFS.
(For more details, see CRS Report RL33928,
Ethanol and Biofuels: Agriculture, Infrastructure,
and Market Constraints Related to Expanded
Production.)

---

CRS-7
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Corporate Average Fuel Economy (CAFE)
No provision.
Title V would establish a single CAFE standard for
No House provision.
a combined passenger car and light truck fleet,
beginning in model year (MY) 2011. The existing
standard is 27.5 miles per gallon (mpg) for
passenger cars and 22.2 mpg for light trucks in
MY2007. H.R. 6 would set a CAFE target of 35
mpg for the combined fleet by MY2020. The
CAFE standards during each of the interim years
(MY2011-MY2019) would be required to be 4%
higher than the previous model year, or at
“maximum feasible” levels. Within 18 months
after enactment, the Department of Transportation
(DOT) would be required to initiate analysis for
the purpose of establishing a commercial medium-
and heavy-duty on-highway vehicle fuel efficiency
improvement program. Other provisions would
require that a percentage of automakers’ new
vehicles be alternative fuel-capable starting in
2012, and that CAFE fines be used to develop
alternative fuel infrastructure. (For additional
information, see CRS Report RL33982, Corporate
Average Fuel Economy (CAFE): A Comparison of
Selected Legislation in the 110th Congress, and
CRS Report RL33413, Automobile and Light
Truck Fuel Economy: The CAFE Standards.)

---

CRS-8
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Federal Renewable Energy Portfolio Standard (RPS)
Title IX, Subtitle H, would establish an RPS
In Senate floor action on its proposed substitute
No Senate provision.
administered by DOE for retail suppliers (electric
(S.Amdt. 1502) to H.R. 6, S.Amdt. 1537 to the
utilities). For each retail supplier that sells more
substitute proposed adding an RPS with a target of
than one billion kilowatt-hours (kwh) per year, the
reaching 15% by 2020. After a successful cloture
RPS would set a minimum electricity production
motion on S.Amdt. 1502, S.Amdt. 1537 was ruled
requirement from renewable resources. The
non-germane.
standard would start at 2.75% in 2010 and then rise
annually until reaching a peak of 15% in 2020.
Electricity savings from energy efficiency
measures would be allowed to compose a
maximum of 25% of the standard in any given
year. The energy efficiency share would rise to a
peak of 4% in 2020, of the 15% total. (For more
details, see CRS Report RL34116, Renewable
Energy Portfolio Standard.)

---

CRS-9
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Royalties Under Offshore Oil and Gas Leases
Title VII, Subtitle E, would require that the
No provision.
No Senate provision.
Secretary of the Interior accept a lessee’s request
to modify certain leases established in 1998 and
1999 without price thresholds (“covered leases”) to
set price thresholds. Lessees holding “covered
leases” would not be eligible for new oil and gas
leases in the Gulf of Mexico unless the covered
leases are modified to include price thresholds or
the lessee would agree to pay a newly established
“conservation of resources fee.” The Subtitle
would repeal royalty relief provisions established
by the Energy Policy Act of 2005 (P.L. 109-58,
§344 and §345). This Subtitle is nearly identical to
Title II of the House-passed version of H.R. 6.
The Congressional Budget Office estimates that
the proposed changes to the royalty system for oil
and natural gas could generate $6.3 billion over 10
years for the U.S. Treasury.

---

CRS-10
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Repeal of Oil and Natural Gas Tax Incentives
Title XIII, Subtitle A, proposes tax revenue offsets
No provisions.
No Senate provision.
that would be obtained by reducing subsidies for


oil and natural gas production.
However, in Senate floor action on its proposed
S.Amdt. 1704 had more revenue offsets than Title

substitute (S.Amdt. 1502) to H.R. 6, S.Amdt. 1704
XIII, Subtitle A of H.R. 3221. The estimated dollar
Section 13001 would repeal the IRS §199 domestic
to the substitute proposed tax revenue offsets that
value of the revenue offset provisions in S.Amdt.
manufacturing deduction for oil and gas companies
were similar to, but more extensive than, the
1704 was more than double that estimated for H.R.
starting in 2008. (Note: In 2007, this deduction
offsets proposed in Title XIII, Subtitle A of H.R.
3221.
would amount to about 6% of the income from
3221. However, S.Amdt. 1704 failed by a vote of
domestic production of oil, gas, or primary
57-36 on a cloture motion to limit debate. (For
products.)
more details, see CRS Report RL33578.)

Under Section 13002, the geological and
geophysical costs (G&G) of a major integrated oil
company would be amortized (deducted
proportionally) over a 7 year period instead of the
current 5 years. (Note: A major integrated oil
company is one with an average world production
of at least 500,000 barrels per day, with 2005 gross
receipts exceeding $1 billion, and which has at
least a 15% interest in refinery operations.)

Section 13003 would restrict oil and gas
companies from claiming foreign tax credits by
changing the method used to calculate “Foreign
Oil and Gas Extraction Income.”

The Joint Committee on Taxation estimates this
Title would increase revenue to the U.S. Treasury
by about $11 billion over 10 years.

---

CRS-11
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Title XIII, Subtitle B would clarify eligibility for
No provision.
No Senate provision.
the renewable diesel tax credit.
Title XIV, Subtitle A, would call for a carbon audit
No comparable provisions in Senate bill, nor in
No Senate provisions.
of the IRS tax code and for a comprehensive study
S.Amdt. 1704, which failed to be added to H.R. 6
of biofuels.
on the Senate floor.

Subtitle B would require that, for a capital grant
program to rehabilitate freight railroad tracks, all
laborers and mechanics be paid at the “prevailing
wage” rate.

---

CRS-12
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Tax Incentives for Renewable Energy Production
Title XI would extend the renewable electricity
No provisions in H.R. 6.
No Senate provisions, but:
production tax credit (PTC) for 4 years and expand


it to include ocean thermal and hydrokinetic
However, S.Amdt. 1704 (Part I) would have
S.Amdt. 1704 proposed a 1-year longer PTC
(wave, tide, and current) energy. Also, it would
extended the PTC for 5 years and expanded it to
extension than the House bill.
extend the 30% business energy investment tax
include ocean thermal and hydrokinetic (wave,

credit (ITC) for solar and fuel cell equipment for 8
tide, and current) energy. Also, it would have
S.Amdt. 1704 proposed $1.6 billion more for
years, authorize $2 billion of clean renewable
extended the 30% business energy tax credit for
CREBs, and it would have expanded the business
energy bonds (CREBs), and remove the cap on the
solar and fuel cell equipment for 8 years and
ITC to utilities.
investment tax credit for residential solar and fuel
repealed the public utility exclusion. It would

cell equipment.
have authorized $3.6 billion of CREBs, and raised
H.R. 3221 would remove the cap on the residential
the cap on the tax credit for residential solar and
ITC.
fuel cell equipment. A new credit would have
S.Amdt. 1704 would have raised the cap on the
been created for residential wind equipment. Two
residential ITC.
incentives for electric transmission would have
S.Amdt. 1704 would have created a credit for
been established.
residential wind equipment.


S.Amdt. 1704 (Part V) would have extended the
S.Amdt. 1704 (Part V) would have extended the
new energy-efficient homes credit for 3 years.
new homes credit.

---

CRS-13
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Tax Incentives for Energy Efficiency in Transportation
Title XII, Subtitle A, would set a $4,000 credit for
No provisions.
No Senate provisions.
plug-in hybrid vehicles, establish a 50 cent per


gallon production tax credit for cellulosic ethanol
S.Amdt. 1704 would have created a credit for
S.Amdt. 1704 had a stronger credit for plug-in
fuel, extend the biodiesel production tax credit for
plug-in hybrids, capped at $7,500 to $15,000,
hybrids.
two years, increase the alternative refueling
depending on vehicle weight. The credit for

stations tax credit, create a fringe benefit for
alternative-fueled vehicles would have been
H.R. 3221 provides some incentives that were not
bicycle commuters, and modify depreciation and
extended for 2 years. An exclusion from heavy
in S.Amdt. 1704.
expensing rules to close a loophole for gas
truck tax would have been established for idling
guzzlers and make incentives available for fuel
reduction units and certain truck insulation
efficient vehicles.
measures.

---

CRS-14
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Tax Incentives for Other Energy Efficiency Measures
Title XII, Subtitle B, Section 12011, would create
No provisions.
No Senate provisions.
an energy conservation tax credit bond for state


and local governments to reduce energy use in
S.Amdt. 1704, Part V, would have extended the
H.R. 3221 would establish two new tax credit bond
public buildings, promote renewables in rural
commercial building deduction for 5 years, and
provisions for state and local programs.
areas, support R&D, mass transit facilities and
extended and expanded the home appliance credit.

vehicles, and technology demonstrations. Total

S.Amdt. 1704 would have extended two home tax
(national) bond authority would be limited to $3.6
Also, Part V would have extended
credits that are not included in H.R. 3221. Also, it
billion.
the new home credit for 3 years and the existing
would have established a new commercial CHP

home efficiency retrofit credit for 2 years. A credit
credit.
Section 12012 would create an energy efficiency
would have been created for commercial
assistance tax credit bond for states to provide
installation of certain combined heat and power
loans and grants for home improvements and
(CHP) equipment.
residential equipment. Total bond authority would

be limited to $2.4 billion. The bond could support
Part I would have expanded the 7-year
Energy Star equipment, renewable energy
depreciation period to include energy management
equipment, and certain targeted reductions in
devices.
energy use. At least 20% of the project proceeds
from each bond issue must be applied to low-
income residential purposes.

Also, Subtitle B would provide a 5-year extension
of the tax deduction for commercial buildings, an
extension and modification of the appliance credit,
and the establishment of a five-year depreciation
period for smart electric meters.

---

CRS-15
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Energy Efficiency - Equipment Standards
Title IX, Subtitle A, Part 1, would set, by statute,
Title II, Subtitle B, would set, by statute, new
Both bills would legislate identical standards for
new efficiency standards for residential clothes
standards for residential boilers, electric motors,
residential clothes washers, dishwashers,
washers, dishwashers, dehumidifiers, refrigerators,
and some home appliances. DOE would be
dehumidifiers, electric motors, and residential
refrigerator-freezers, freezers, electric motors, and
directed to set standards by rulemaking for furnace
boilers. The House bill would also legislate
residential boilers. DOE would be allowed to
fans. Also, DOE would be allowed to set
standards for refrigerators, freezers, and
establish regional variations in standards for
standards for multiple components and regional
refrigerator-freezers. The Senate bill would direct
heating and air conditioning equipment. DOE
standards for heating and cooling equipment.
DOE to set standards by rule for refrigerators,
would be required to complete a rulemaking
Further, this Subtitle would provide incentives for
freezers, and refrigerator-freezers. Both bills
process for furnace fans by 2013. Federal agencies
the manufacture of high-efficiency consumer
would direct DOE to set standards by rule for
would be directed to purchase devices that limit
products. Other provisions would expedite
furnace fans. The House bill would legislate
standby power use. DOE would be directed to
rulemakings, clarify limits to federal preemption of
certain efficiency measures for walk-in coolers and
issue a final rule that sets efficiency standards for
state standards, and require Energy Guide labels
freezers.
battery chargers. Certain energy efficiency
for several types of consumer electronic products.

measures for walk-in coolers and walk-in freezers
Also, DOE would be directed to establish a
Both bills would legislate identical standards for
would be set by legislation. Also, several
program for the use of new technologies to
incandescent reflector lamps. The House bill
procedural changes would be made to expedite the
improve energy efficiency in materials
would also legislate standards for certain metal
DOE rulemaking process.
manufacturing and energy-intensive industries.
halide lamps.


Part 2 would set a mandatory target for lighting
Subtitle A would require all federal lighting to be
efficiency, set a standard for incandescent reflector
Energy Star rated by 2010, expanding efficiency
lamps, and require federal agencies to replace
standards for incandescent reflector lamps,
incandescent lights with more efficient ones.
creating the “Bright Tomorrow” lighting prizes for
Energy efficiency standards would be set by
solid state (LED) lighting developments, and
legislation for metal halide lamp fixtures designed
establishing a “Sense of the Senate” to pass
to be operated with lamps rated between 150 watts
mandatory energy efficiency performance targets
and 500 watts.
for lighting products.

---

CRS-16
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Loan Guarantees for Energy Facilities
Title IX, Subtitle C, would amend EPACT05 Title
Title I (Sec. 124) would amend EPACT05 Title
The Senate bill specifies that annual limits in
XVII to specify that loan guarantees must be large
XVII to specify that up to 100% of a project’s debt
appropriations acts would not apply to loan
enough to ensure financing for a project (up to
may be guaranteed and that the loan guarantee
guarantees using non-appropriated funds (using
80% of project costs), that DOE may not establish
program is not subject to annual limits established
funds provided by project sponsors, as authorized
regulations limiting guarantees to less than 100%
by appropriations acts when non-appropriated
by EPACT05). This provision is considered
of project debt, and that workers on such projects
funds are used. Loan guarantee authority would be
important for nuclear power plants, which tend to
must be paid prevailing wages under the Davis-
extended to renewable fuel facilities (Sec. 124) and
be far more expensive than other advanced energy
Bacon Act. In addition, appropriations bills could
production facilities for fuel efficient vehicles or
projects. The House bill would help nuclear power
not exclude any category of projects otherwise
parts (Sec. 242).
by prohibiting appropriations acts from excluding
eligible for loan guarantees under EPACT05. New
any project categories (the House-passed Energy
loan guarantee authority would be established for
and Water Development Appropriations Bill for
biofuel plants (Sec. 5003), rural renewable energy
FY2008 (H.R. 2641) excludes nuclear plants). The
systems (Sec. 5006), vessels for short sea
House bill establishes new loan guarantee
transportation (Sec. 8401), advanced battery
authority for a wider variety of projects than the
manufacturing facilities (Sec. 9401), and green
Senate bill.
building retrofits (Sec. 9052).

---

CRS-17
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Energy Efficiency - Federal
Title VI, Subtitle B, would require federal agencies
Title II, Subtitle E, would require federal and state
Both bills would set a goal to reduce fossil fuel use
to purchase “low carbon” vehicles and to procure
fleets to reduce oil use 30% by 2016. The
in federal vehicle fleets, but by using different
energy-efficient products. DOE would be directed
renewable energy share of federal energy
approaches. The Senate bill would also set a goal
to revise energy performance standards for federal
purchases would increase to 15% by 2015. Federal
to reduce use by state fleets.
buildings to reduce oil use. Covered buildings
agencies would have permanent authority to use

would have to reduce the share of fossil fuel use by
Energy-Saving Performance Contracts (ESPCs).
Both bills set goals for reducing fossil fuel use in
55% in 2010, reducing steadily to 100% (zero
Federal buildings would be required to reduce
federal buildings. The House bill would drive this
emissions) by 2030. Subtitle C would create a
energy use 30% by 2015. Federal buildings would
reduction with a DOE rulemaking.
telework (work from home) policy at federal
be required to reduce fossil energy use by 50%.

agencies. Alterative fuels could not be procured if

The Senate bill would set a broader requirement
greenhouse gas (GHG) emissions exceed those for
Title IV, Subtitle A, would direct GSA to
for light bulbs.
conventional petroleum fuels.
accelerate federal agency use of efficient lights.


Subtitle B would direct GSA to install a solar
Title VIII, Subtitle F, would prohibit the General
photovoltaic system at DOE headquarters.
Services Administration (GSA) from purchasing

incandescent lights for Coast Guard buildings.
Title IV, Subtitle C, Section 432, would establish
Also, it would direct GSA to install a solar
virtually identical provisions for federal green
photovoltaic system at DOE headquarters.
buildings.


Title IX, Section 9042, would direct GSA to
Section 452 would set identical procurement
establish an Office of Federal High-Performance
requirements.
Green Buildings that would identify standards,
practices, and incentives for federal agencies.
Would include agency retention of cost savings.

Section 9046 would direct the Office of Federal
Procurement Policy to require that acquisition,
construction, and major renovations of buildings
employ green design. In leasing, preference would
be given to energy-efficient buildings.

---

CRS-18
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Energy Efficiency - Congressional
Title VIII, Subtitle F, Part 3, would direct the
No provision.
No Senate provision.
Architect of the Capitol to operate the Capitol
Power Plant in an energy-efficient manor, include
energy efficiency measures in the Capitol Complex
Master Plan, and encourage the use of E85 fuel
and solar photovoltaic equipment.
Energy Efficiency - Vehicle Transportation
Title VIII, Subtitle B, Part 2, provides support for
Title II, Subtitle C, would promote high-efficiency
The bills have similar aims, but differ in focus and
federal-aid highways. The federal share for
vehicles, advanced batteries, and energy storage.
means. Both bills would establish grant programs.
congestion mitigation and air quality (CMAQ)
DOE would be authorized to fund an R&D
The House bill would provide loan guarantees and
projects would be increased up to 100% of project
program on light-weight materials. A loan
grants to support advanced technology work and
or program cost.
guarantee program would be created for facilities
hybrid vehicle purchases. The Senate bill would

that manufacture fuel-efficient vehicles. Funding
rely more on R&D and less on loan guarantees.
Title IX, Subtitle E would establish a loan
awards for qualified investments would be
The Senate bill has a broader scope, including loan
guarantee program for advanced battery
authorized to refurbish manufacturing facilities
guarantees for constructing or retrofitting facilities
development, grant programs for plug-in hybrid
that produce advanced technology vehicles. A 10-
that manufacture fuel-efficient vehicles.
vehicles, incentives for purchasing heavy duty
year R&D program would be authorized to support
hybrids for fleets, and credits for various electric
U.S. competitiveness in global energy storage
vehicles.
markets, and a five-year R&D program would be
authorized for electric drive technologies. DOE
would be directed to establish a competitive grant
program for state, regional, and local government
entities to demonstrate electric drive vehicles.
DOE would also be required to establish a program
to deploy technologies that would achieve near-
term oil savings in the transportation sector.

---

CRS-19
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Renewable Fuel Supply and Infrastructure
Title V (§5003) would provide loan guarantees for
Title I (§124) would provide loan guarantees for
The House bill would authorize funding for grants
up to 90% ($250 million in principal) of project
up to 100% ($250 million in principal) of project
to support cellulosic ethanol production, but the
cost for biorefineries and biofuel production
cost for advanced biofuel (new technology) pilot
Senate bill would not.
plants.
plants.



The Senate bill would authorize funding for grants
Title IX (§9304) would direct DOE to study the
Title I (§143) would direct DOE to study the
to states with low ethanol production rates, but the
feasibility of constructing dedicated ethanol
feasibility of constructing dedicated ethanol
House bill would not. The Senate bill would
pipelines.
pipelines.
create a fuel labeling requirement, and the House


bill would not.
Title IV (§9301) would authorize funding for DOE
Title I (§121) would authorize funding for DOE to
to make grants for renewable fueling
make grants for renewable fueling infrastructure
infrastructure. Additional provisions (§4403, Title
and corridors in 10 geographically-dispersed areas.
IX-D) would support other aspects of

infrastructure development.
Other provisions would authorize funding for

R&D, bioenergy research centers (11), grants to
Title IX (§9308) would authorize DOE funding
states with low ethanol production rates, biomass
support for grants to diversify feedstocks and
transportation, a fuel labeling requirement, and a
locations for cellulosic ethanol production
biodiesel fuel quality standard.
facilities.

Other provisions would authorize funding for
R&D, bioenergy research centers (5), and a
biodiesel fuel quality standard.

---

CRS-20
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Rail, Sea, and Air Transportation
Title VIII, Subtitle B, would direct DOT to
No provisions.
No Senate provisions.
establish grants that can help rail carriers buy
hybrid locomotives and grants that can improve
railroad track. Subtitle D would create a short sea
maritime transportation program. Subtitle E would
establish a grant program to reduce airport noise,
air pollution, and greenhouse gas emissions.

---

CRS-21
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
International Energy Cooperation
Title IX, Subtitle D, Part 2, would establish a grant
Title VII would express the sense of Congress on
The House provision only addresses energy
program and advisory board for U.S.-Israel energy
international energy cooperation, emphasizing
cooperation with Israel.
cooperation. The provisions of this Subtitle are
increased use of sustainable energy sources. To
identical to those of H.R. 3238.
support this, the Department of State would be
encouraged to establish (1) strategic energy
partnerships with the governments of major energy
producers and consumers, and other governments;
(2) a petroleum crisis response mechanism with
China and India; and (3) a Western Hemisphere
energy crisis response mechanism, a ministerial
Hemisphere Energy Cooperation Forum, and a
Hemisphere Energy Industry Group. Also, the bill
would establish a “Hemisphere Energy
Cooperation Forum,” that would be encouraged to
implement initiatives on energy sustainability and
development.

Section 710 proposes the “No Oil Producing and
Exporting Cartels (NOPEC) Act, which would
make it illegal for any foreign state or group of
states to limit production of oil and natural gas to
influence the price of petroleum products in the
United States. It would deny the sovereign
immunity of any state in violation of the
prohibition, and would allow the U.S. Attorney
General to bring action in any district court under
antitrust laws.

---

CRS-22
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
International Climate Cooperation on Climate Change
Title II, Subtitle A, states that it would be the
No similar provision.
No Senate provision.
policy of the United States to take a more active
and constructive role in international climate
change negotiations, specifying future meetings of
the Conferences of the Parties to the United
Nations Framework Convention on Climate
Change. Among the actions specified, the United
States would seek mitigation commitments from
all major greenhouse-gas (GHG) emitting nations,
including China, India, Brazil, and other major
developing nations. An Office on Global Climate
Change would be established within the
Department of State, headed by an Ambassador-at-
Large who would advance U.S. goals concerning
reducing emissions of GHGs and serve as a
principal adviser to the President and Secretary of
State on climate change policy.

---

CRS-23
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Carbon Storage
Title IV, Subtitle F, would expand the DOE
Title III of H.R. 6 is similar to Title IV, Subtitle F,
The Senate bill does not include an NAS review of
program for carbon capture to include R&D for
and Title VII, Subtitle D, of H.R. 3221. The DOE
the DOE programs, nor establish a university-
carbon storage and demonstration. DOE would
program would be expanded to include carbon
based grant program for geological sequestration
conduct 7 initial large-volume sequestration tests,
storage and carbon capture demonstration projects.
science. Also, the Senate bill does not require that
preferably using carbon dioxide (CO ) from large
Also, a Department of the Interior program would
EPA assess impacts of CO capture and
2
2
industrial or electricity-generating sources, and
be established to assess the national carbon dioxide
sequestration on public health and safety and the
would conduct at least 3 large-scale carbon capture
(CO ) storage capacity.
environment. Title IV of the House bill authorizes
2
demonstration tests from industrial sources of CO .
a higher level of appropriations for programs than
2
Beginning in 2011, the National Academy of
the Senate bill.
Sciences (NAS) would review the large-scale

sequestration and capture programs. EPA would
(For more information on this topic see CRS
conduct a research program to assess potential
Report RL33801, Direct Carbon Sequestration:
impacts of CO storage on the environment, public
Capturing and Storing CO , by Peter Folger.)
2
2
health and safety associated with capture and
sequestration. A grant program for graduate
degrees in geological sequestration science would
be established.

Title VII, Subtitle D, would establish a program in
the Department of the Interior (DOI) to be
conducted by the U.S. Geological Survey that
would develop a methodology for, and conduct an
assessment of, the CO storage capacity of the
2
United States.

---

CRS-24
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Carbon Neutral Government
Title VI, Subtitle A, would require each federal
No provision.
No Senate provision.
agency to inventory its greenhouse gas emissions
annually. EPA would set collective annual
emission reduction targets, with a goal of zero net
annual emissions (carbon-neutrality) by 2050.
Federal agencies would be allowed to purchase
qualified offsets and renewable energy certificates
in open market transactions. The maximum
agency funding for this Subtitle would be 0.01% of
discretionary funds in FY2009 and FY2010. This
subtitle would not preempt state actions.
Energy Efficiency - Buildings
Title IX, Subtitle A, Part 3, would encourage
Title II, Subtitle E, would direct the Department of
The House bill provision for building codes covers
stronger state building codes. Part 4, Section 9043, Housing and Urban Development (HUD) to update
all building sectors; the Senate bill is focused on
would create an Office of Commercial High
energy efficiency standards for all public and
public housing and schools.
Performance Green Buildings at DOE. Section
assisted housing.

9044 would establish a zero-energy commercial

The House bill has provisions for loan guarantees
buildings initiative. A national goal would be set
Title IV Subtitle C, Part 2, would create a green
and a revolving loan program.
to achieve zero-net-energy use for new commercial
schools program.
buildings built after 2025. Further, a goal would
be set to retrofit all pre-2025 buildings to zero-net-
energy use by 2050. Certain green building
renovations would be eligible for loan guarantees
under §1703 of EPACT. Part 6 would create a
federal revolving fund that would make loans for
combined heat and power projects at public
institutions.

---

CRS-25
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Energy Efficiency - State and Local
Title IX, Subtitle A, Part 3, Section 9034, would
Title II, Subtitle F, Section 271, would authorize
The Senate bill would authorize nearly double the
increase the funding authorization for the DOE
$7 billion over 5 years for the DOE Weatherization
amount of House-recommended Weatherization
Weatherization program, providing $3.75 billion
program and reauthorize the State Energy program.
funding.
over 5 years.

Section 273 would require state utility regulatory
The House bill would not direct state regulatory
Part 9 would direct the Department of Energy
commissions to consider federal standards to
agencies to consider promoting energy efficiency.
(DOE) to establish an energy efficiency block
promote energy efficiency.
grant program for state and local governments.
The eligibility criteria for the energy efficiency
The program would support the development of
Section 275 would create a nearly identical energy
block grant program differ somewhat between the
energy efficiency goals and strategies, public
efficiency block grant program at DOE.
two bills. The Senate would provide a higher
outreach, and implementation.
share of funding for states. The House would
authorize “such sums as needed” and the Senate
would authorize $10 billion over 5 years.
Energy Efficiency - Small Business
Title III would establish loans, grants, and
No provision.
No Senate provision.
debentures to help small businesses develop, invest
in, and purchase energy efficient buildings,
fixtures, equipment, and technology.
Green Jobs
Title I would authorize up to $125 million in
Title II, Subtitle F, Section 277 would authorize up
The House would authorize $25 million more than
funding to establish national and state job training
to $100 million to establish a nearly identical
the Senate. Also, the House provides for a
programs, administered by the U.S. Department of
program.
“Pathways Out of Poverty Demonstration
Labor, to help address job shortages that are
Program” that is not in the Senate proposal .
impairing growth in green industries, such as
energy efficient buildings and construction,
renewable electric power, energy efficient
vehicles, and biofuels development

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CRS-26
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Electricity Transmission/Smart Grid
Title VII, Subtitle B, Chapter 5, would direct DOE
No provisions.
No Senate provisions.
to study transmission capacity in California,
Oregon, and Washington to determine whether it
could support new electricity generation from
ocean wave, tidal, and current energy projects that
could contribute up to 10% of total electricity use
in those states.

Title IX, Subtitle B, would create an electric grid
modernization commission to study and propose
policies on “Smart Grid” technology
implementation. A federal 25% matching grant
program would be created to support
implementation. DOE would be directed to help
deploy technologies and perform cooperative
demonstration projects with electric utilities.
States would be required to consider regulatory
standards that would allow utilities to recover
smart grid investments through rates and
“decouple” utility profits from electricity sales
volume.
Wind Farm Impacts on Wildlife
Title VII, Subtitle B, Chapter 4, requires the
No provision.
No Senate provision.
Department of the Interior to form a committee to
recommend guidance to minimize and assess
impacts of land-based wind turbines on wildlife
and their habitat. State and federal laws (and
regulations) would not be preempted.

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CRS-27
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Renewable Energy R&D
Title IV would authorize funding for DOE to
Title II, Subtitle G, would direct DOE to create an
Both bills include marine energy. The House bill
conduct R&D programs on marine (Subtitle B),
R&D program focused on “marine energy”
includes other energy technologies.
geothermal (Subtitle C), solar (Subtitle D), and
technology that produces electricity from waves,
biofuels (Subtitle E) energy R&D.
tides, currents, and ocean thermal differences. (For
more background on marine energy, see CRS
Report RL33883, Issues Affecting Tidal, Wave,
and In-Stream Generation Projects.)
Hydrogen Award
Title IV, Subtitle H, would direct DOE to conduct
No provision.
This provision is identical to the H-Prize in H.R.
a competitive program to award cash prizes (H-
632, which passed the House before H.R. 3221.
Prize) to advance R&D, demonstration, and
commercial application of hydrogen energy
technologies.
Price Gouging
No provision.
Title VI would criminalize price gouging in fuel
No provision in House bill. However, on May 23,
markets during an energy emergency. (For more
2007, the House passed a similar version in a
details, see CRS Report RS22236, Gasoline Price
stand-alone bill, H.R. 1252, the proposed Federal
Increases: Federal and State Authority to Limit
Price Gouging Prevention Act.
“Price Gouging.”

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CRS-28
House-Passed H.R. 3221
Senate-Passed H.R. 6
Key Differences
Agriculture Energy
Title V assumes several of the provisions from the
No provision.
The major distinction between the agriculture
energy title (Title IX) of H.R. 2419 — the Farm,
energy titles of H.R. 3221 and H.R. 2419 is that
Nutrition, and Bioenergy Act of 2007 — that was
Title IX of H.R. 2419 has higher funding levels
passed by the House on July 2, 2007. Both Title
and more provisions than in Title V of H.R. 3221.
V of H.R. 3221 and Title IX of H.R. 2419 expand
In particular, H.R. 2419 proposes a total of $3.2
and extend several provisions from the energy title
billion in new funding for Title IX energy
(Title IX) established by the Farm Security Act of
provisions over 5 years compared with $2.2 billion
2002, including substantial increases in funding
under Title V of H.R. 3221. The most notable
and a heightened focus on developing cellulosic
energy provision of H.R. 2419 omitted from H.R.
ethanol production. In particular, Title V of H.R.
3221 is a Biomass Energy Reserve (BER) program
3221 includes nearly $1 billion in production
to provide financial and technical assistance
incentive payments on new biofuels production;
(including five year contracts) to landowners and
new funding to underwrite up to $1.6 billion in
operators to grow dedicated energy crops as
loan guarantees for the development of new
feedstock for cellulosic ethanol and other energy
biorefineries; and $236 million in new funding for
production.
research on biomass production, harvest,
transportation, and storage. (For more background,
see CRS Report RL34130, Renewable Energy
Policy in the 2007 Farm Bill.)
ARPA-E
Title IV, Subtitle A, would direct that an Advanced
No provision.
Similar provision signed into law as part of the
Research Projects Agency - Energy be established
America Competes Act (P.L. 110-69, §5012).
at DOE.

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CRS-29
Appendix A. House-Passed Version of H.R. 3221,
Division A: “New Direction for Energy
Independence, National Security, and Consumer
Protection Act”
The proposed New Direction for Energy Independence, National Security, and
Consumer Protection Act (H.R. 3221) is an omnibus energy policy bill that consists
mainly of provisions for energy efficiency and renewable energy. It was composed
of several bills that were reported from various committees.4 In House floor action
on August 4, 2007, several amendments to H.R. 3221 were adopted, including one
that would establish a renewable energy portfolio standard (RPS). The House
approved the amended bill by a vote of 241-172. Minutes later, the tax provisions
bill (H.R. 2776) was approved and then incorporated into H.R. 3221. A brief
description of the provisions in H.R. 3221 and H.R. 2776 follows.
Key Provisions Adopted and Absent
A description of some key provisions and amendments follows:
Renewable Energy Portfolio Standard (RPS).5 H.Amdt. 748 proposed an RPS
target that would reach 15% by 2020. Up to 4% of the target could be met with
certain energy efficiency measures. The amendment was approved by a vote of 220-
190.
Renewable Energy and Energy Conservation Act (H.R. 2776). This bill
proposed extensions and additions of several tax incentives for renewable energy and
energy efficiency, including a four-year extension of the renewable energy electricity
production tax credit. The bill was approved on a separate floor vote by a tally of
221-189. It was subsequently incorporated into H.R. 3221.
Renewable Fuel Standard (RFS). Proposed Amendment 81 would have
increased RFS to 36 billion gallons by 2022. It was withdrawn.
Corporate Average Fuel Economy (CAFE) Standards. Proposed amendments
62 and 95 offered different policies for increasing CAFE standards. Proposed
Amendment 95 was withdrawn, and Proposed Amendment 62 was not included in
the rule that prescribed floor action.
4 The bills included H.R. 364, H.R. 2304, H.R. 2313, H.R. 2337, H.R. 2389, H.R. 2420, H.R.
2635, H.R. 2701, H.R. 2773, H.R. 2774, H.R. 2776, H.R. 2847, and a draft bill
(unnumbered) from the Committee on Energy and Commerce. More details about the bills
are available in the Legislation section of this report.
5 Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum
amount of electricity from renewable energy resources or purchase tradable credits that
represent an equivalent amount of renewable energy production. The minimum requirement
is often set as a percentage share of a supplier’s total retail electricity sales.

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CRS-30
Oil Savings Provisions. Proposed Amendment 36 would have set a goal to
reduce imported oil to less than 25% of vehicle petroleum use by 2015. Proposed
Amendment 72 would have called for development of a plan to cut U.S. oil use by
2.5 million barrels per day (mbd) by 2016, rising significantly by 2025. Neither
Amendment 36 nor Amendment 72 was included in the rule that prescribed floor
action.
Title I — Green Jobs
This title assumes the provisions of H.R. 2947. It would authorize up to $125
million in funding to establish national and state job training programs, administered
by the U.S. Department of Labor, to help address job shortages that are impairing
growth in green industries, such as energy efficient buildings and construction,
renewable electric power, energy efficient vehicles, and biofuels development.
Title II — The International Climate Cooperation Re-
engagement Act of 2007
This title assumes the provisions of H.R. 2420. It would declare U.S. policy on
international climate cooperation, authorize assistance to promote clean and efficient
energy technologies in foreign countries, and establish the International Clean Energy
Foundation.
Subtitle A — U.S. Policy on Global Climate Change. This subtitle
would state that it is the policy of the United States to take a more active role in
international climate change negotiations including future fifteenth meeting of the
Conference of Parties (COP-15) to the United Nations Framework Convention on
Climate Change. Also, the United States would declare its intent to seek mitigation
commitments from all major greenhouse gas (GHG) emitting nations, including
China, India, Brazil, and other major developing nations. An Office on Global
Climate Change would be established at the Department of State. The Secretary of
State would be required to report to Congress on progress made in promoting
transparency in extractive industries resource payments.
Subtitle B — Assistance for Clean and Efficient Energy
Technologies. The U.S. Agency for International Development (USAID) would
be directed to report to Congress on efforts to support policies for clean and efficient
energy technologies. The Department of Commerce would be directed to increase
efforts to export such technologies and report to Congress on the results. Other U.S.
agencies with export promotion responsibilities would be required to increase efforts
to support these technologies. Also, increased efforts are requested from the
Interagency Working Group on the Clean Energy Technology Exports Initiative,
particularly to implement its 2002 strategic plan. The Secretary of State would be
required to report to Congress on the impact of global climate change on developing
countries.
Subtitle C — International Clean Energy Foundation. The Foundation
would be established with the long-term goal of reducing GHG emissions. It would
be directed to use the funds authorized by this subtitle to make grants to promote

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CRS-31
projects outside of the United States that serve as models of how to reduce emissions.
An annual report to Congress would be required.
Title III — Small Energy-Efficient Businesses
This title assumes the provisions of H.R. 2389. Loans, grants, and debentures
that would be established to help small businesses develop, invest in, and purchase
energy efficient buildings, fixtures, equipment, and technology. On May 23, 2007,
the House Committee on Small Business ordered reported H.R. 2389 by voice vote.
Title IV — Science and Technology
This title has eight subtitles, most of which correspond to a bill ordered reported
by the House Committee on Science and Technology.
Subtitle A — Advanced Research Projects Agency — Energy. This
subtitle assumes the provisions of H.R. 364. ARPA-E would be established at the
Department of Energy (DOE). The new agency’s goal would be to reduce the energy
imports from foreign sources by 20% over the next 10 years. On May 23, 2007, the
House Science and Technology Committee ordered reported H.R. 364. On August
9, 2007, the President signed the America Competes Act (P.L. 110-69). In that law,
Section 5012 (Title V) directs that an ARPA-E be established at DOE.
Subtitle B — Marine Renewable Energy. This subtitle assumes the
provisions of H.R. 2313. DOE would be directed to support wave, tidal, current, and
ocean thermal energy technology R&D and commercial applications to help expand
energy production. Further, DOE would be instructed to award grants to institutions
of higher education (or consortia thereof) to establish National Marine Renewable
Energy Research, Development, and Demonstration Centers. On June 21, 2007, the
House Committee on Science and Technology reported H.R. 2313.
Subtitle C — Geothermal Energy. This subtitle assumes the provisions of
H.R. 2304. DOE’s program for geothermal energy R&D, demonstration, and
commercial application would be expanded to cover certain advanced concepts. On
June 21, 2007, the Committee reported H.R. 2304.
Subtitle D — Solar Energy. Part 1 assumes the provisions of H.R. 2774.
It aims to improve the cost and effectiveness of thermal energy storage technologies
that could improve the operation of concentrating solar power electric generating
plants. Also, it calls for improved integration of concentrating solar power into
regional electricity transmission systems. On June 22, 2007, the House Committee
on Science and Technology ordered reported H.R. 2774 by voice vote.
Part 2 would require DOE to create a Solar Energy Industries Research and
Promotion Board and a Solar Energy Research and Promotion Operating Committee.
The Board and Committee would work with manufacturers and importers of solar
energy products to improve consumer awareness of solar energy options and
appropriate certifications. The solar program would be funded by a small portion of
industry revenues. No appropriations are authorized.

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CRS-32
Subtitle E — Biofuels. This subtitle assumes the provisions of H.R. 2773.
It aims to improve information about federal biofuels research programs, focus
research on infrastructure and biorefineries, study potential impacts of increased
biofuels use, and increase authorized funding for DOE biofuels research. An
authorization of $25 million would be created to provide grants for biofuels RD&D
and commercial applications in states that have low rates of ethanol production. A
university-based program would provide grants up to $2 million for R&D on
renewable energy technologies. Priority would be given to universities in low
income and rural communities with proximity to trees dying of disease or insect
infestation.
Subtitle F — Carbon Capture and Storage. This Subtitle assumes the
provisions of H.R. 1933. A program would be established at DOE for carbon capture
and storage R&D and demonstration. DOE would be directed to engage the National
Academy of Sciences (NAS) to conduct a review of the program. EPA would be
directed to assess potential impacts of such storage on public health and safety and
the environment. DOE would be directed to work with NAS to establish graduate
degree programs on geological sequestration at universities. Further, a university-
based grant program would be created.
Subtitle G — Global Change Research. Part 1 would direct the President
to establish an interagency committee to coordinate research on global change. The
committee would be responsible for developing a national global change research and
assessment plan. Further, a U.S. global change research program would be
established, with the Office of Science and Technology Policy (OSTP) serving as the
lead agency. A report to Congress would be required to accompany each annual
budget request.
Part 2 would establish an interagency working group charged with
recommending ways to coordinate federal data management and archiving activities
for climate data and other global change data.
Subtitle H — H-Prize. DOE would be directed to conduct a competitive
program to award cash prizes to advance R&D, demonstration, and commercial
application of hydrogen energy technologies. The provisions of this Subtitle are
identical to those of H.R. 632, which passed the House on June 6, 2007.
Title V — Agriculture Energy
This title assumes the provisions of H.R. 2419. Agricultural-based energy
programs established by the Farm Security Act of 2002 would be expanded and
continued through FY2012. A total of about $3.2 billion in new funding is proposed
including $1.4 billion for biofuels production incentives, $800 million to underwrite
up to $2 billion in loan guarantees for biorefineries, $420 million for research on
biomass feedstocks and production, and new mandatory funding for a cellulosic
biomass feedstock reserve. Most new funding would be directed away from corn-
based ethanol and toward cellulosic-based biofuels and other new technologies.
USDA would be directed improve feedstock flexibility for bioenergy producers by
purchasing eligible commodities and selling them to bioenergy producers in a way
that ensures no cost to the federal government and avoids forfeitures to the

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CRS-33
Commodity Credit Corporation. Except for sections 5011 and 5012, all other
provisions of Title V are included in H.R. 2419, the Farm, Nutrition, and Bioenergy
Act of 2007, which passed the House on July 27, 2007. (For more background, see
CRS Report RL34130, Renewable Energy Policy in the 2007 Farm Bill.)
Title VI — Carbon-Neutral Government Act
This title assumes the provisions of H.R. 2635. It would set a goal to make the
federal government carbon-neutral by 2050. Several energy and fuel efficiency
policies would be undertaken to meet this goal, including standards for federal fleet
emissions, green buildings, and agency purchases of renewable energy.
Subtitle A — Federal Government Inventory and Management of
Greenhouse Gas (GHG) Emissions. Each federal agency would be required
to inventory and report on its GHG emissions annually. EPA would be required to
review the each agency’s inventory to see that it complied with guidance for data
collection. EPA would be directed to set a collective annual emission reduction
target for each year in the period from 2010 through 2050. The goal would be to
achieve zero net annual emissions (carbon-neutrality) by 2050. The Government
Accountability Office (GAO) would be required to issue a report on markets for
GHG offsets. Federal agencies would be allowed to purchase offsets and renewable
energy certificates in open market transactions. This subtitle would not preempt or
limit any state actions to reduce emissions.
Subtitle B — Federal Government Energy Efficiency. Federal agencies
would be required to purchase “low GHG” vehicles and to procure energy-efficient
(Energy Star) products or products designated by the federal energy management
program (FEMP-designated). DOE would be directed to establish, by rule, revised
federal building energy efficiency performance standards for new federal buildings
and major federal building renovations. Relative to a comparable building’s fuel use
in 2003, buildings covered by the rule would be directed to reduce the share of fossil
fuel use by 55% in 2010, reducing steadily to 100% (zero emissions) by 2030. Each
federal agency would be required to ensure that a large capital investment in an
existing building that is not a major renovation employs the most energy efficient
designs, systems, equipment, and controls that are life-cycle cost effective. Federal
agencies would be directed to avoid leasing buildings that are not Energy Star rated.
Alternative fuels could not be procured if they have GHG emissions greater than
those produced by conventional petroleum. Federal contracts for renewable energy
could not exceed 30 years and could not include energy generated from municipal
solid waste. The Office of Management and Budget (OMB) would be required to
report annually on progress under Title VI.
Subtitle C — Telework Enhancement. Federal executive branch agencies
would be directed to develop and implement a telework (work from home or close
to home) policy for eligible employees. It would exclude those employees who
handle secure materials or special equipment, are assigned to national security
functions, or voluntarily decline the telework option.

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CRS-34
Title VII — Natural Resources Committee Provisions
This title assumes the provisions of H.R. 2337. It includes provisions that
would regulate wind impacts on wildlife, require a study of transmission capacity to
help foster ocean wave, tidal, and current energy projects, create grants for studies
of alternative energy development on the outer continental shelf, and establish pilot
programs to use federal lands to harvest woody biomass and install concentrating
solar power facilities.
Subtitle A — Energy Policy Act of 2005 Reforms. Subtitle A would
repeal subsections 365(g) and 365(i) of EPAct 2005 regarding recovery of permit
processing costs. It would require the Secretary of the Interior to impose fees on the
oil and gas industry to recover costs associated with the streamlining of permits
during the pilot project established by EPAct to improve federal permit coordination.
A new 45-day deadline would be imposed for the consideration of applications for
permits under section 366 of EPAct 2005. Section 369 of EPAct would be amended
by removing two deadlines related to oil shale research and development and the
preparation of a final environmental impact statement for commercial oil shale and
tar sands leasing on public lands. H.R. 3221 would limit section 390 of EPAct, which
allows for a rebuttleable presumption regarding the application of categorical
exclusion under the National Environmental Policy Act (NEPA) for oil and gas
exploration and development activities, and adhere to the regulations issued by the
Council on Environmental Quality. And a Best Management Practices (BMP)
provision would require BLM to allow for public comment and review before lease
stipulation waivers are granted.
(More details on Subtitle A can be found in CRS Report RL34111, Energy
Policy Reform and Revitalization Act of 2007, Title VII of H.R. 3221: Summary and
Discussion of Oil and Gas Provisions.)
Subtitle B — Federal Energy Public Accountability, Integrity, and
Public Interest. Chapters 1 through 3 would require a minimum of 550 audits
annually, and increase fines for royalty payment violations under the Federal Oil and
Gas Royalty Management Act of 1982 (FOGRMA). Surface owner protection would
be enhanced under split estates where the federal government owned and leased
minerals. Onshore oil and gas reclamation and bonding requirements would become
more stringent. Additional requirements for the protection of water resources are
included and new fees would be assessed to lessees of federal lands as a disincentive
to hold and not develop those lands. (More details on Chapters 1 through 3 of
Subtitle B can be found in CRS Report RL34111, Energy Policy Reform and
Revitalization Act of 2007, Title VII of H.R. 3221: Summary and Discussion of Oil
and Gas Provisions.)
Chapter 4 on Wind Energy would require the Department of the Interior to form
a wind turbines guidelines advisory committee to study and recommend guidance for
wind energy developers to mitigate the impact of turbines on birds and wildlife.
State laws and regulations would not be preempted.
Chapter 5 on Enhancing Energy Transmission would direct DOE to study
transmission capacity in California, Oregon, and Washington to determine whether

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CRS-35
it could support new electricity generation from ocean wave, tidal, and current energy
projects that could contribute up to 10% of total electricity use in those states.
Subtitle C — Alternative Energy and Efficiency. A grant program would
be created for studies of alternative energy development on the outer continental
shelf. The Department of the Interior would be directed to assess and report to
Congress on the potential for using leasing of federal lands and other means to help
develop rights-of-way and infrastructure along Bureau of Reclamation canals to
support solar and wind energy production. A program would be established to
research methods for improving the energy efficiency of reverse osmosis technology
that is used for water desalination, water recycling, and clean up of water
contamination. A pilot program would be created to develop a strategic solar reserve,
and would identify and assess potential sites on federal lands for concentrating solar
power systems. The National Oceanic and Atmospheric Administration would be
directed to issue regulations necessary to implement its authority to license offshore
thermal energy conversion facilities. A program would be established to use biomass
from federal forest lands.
Subtitle D — Carbon Capture and Climate Change Mitigation.
Chapter 1 would direct the Department of the Interior to develop a methodology for
an assessment of the national potential for geological storage of carbon dioxide.
Chapter 2 would direct the U.S. Geological Survey to estimate the potential for
increasing carbon sequestration in natural systems through management measures or
restoration activities in each ecosystem. A report to Congress would be required.
Chapter 3 would direct the Bureau of Land Management to maintain records on, and
an inventory of, the amount of carbon dioxide stored in geological structures on
federal lands. A report to Congress would be required that estimates the potential
capacity for such storage on federal lands.
Chapter 4 would direct the Department of the Interior to establish an interagency
National Resources Management Council on Climate Change to address the impacts
of climate change on Federal lands, the ocean environment, and the federal water
infrastructure. The Council would prepare a national plan that would be presented
to Congress. Also, a national policy would be established that directs the federal
government to cooperate with state, tribal, and affected local governments, other
concerned public and private organizations, landowners, and citizens to use all
practicable means and measures to assist wildlife populations and their habitats in
adapting to and surviving the effects of global warming. A national strategy would
be developed, an advisory board would be formed, and a state and tribal grants
program would be established.
Chapter 5 would direct the Department of Commerce to develop a national
strategy to support coastal state and federal agency efforts to predict, plan for, and
mitigate the impacts on ocean and coastal ecosystems from global warming, relative
sea level rise, and ocean acidification. Further, it would be directed to develop a
coastal climate change resiliency planning and response program to prepare for and
reduce the negative consequences that may result from climate change in the coastal
zone, and provide financial and technical assistance and training. Also, a National
Integrated Coastal and Ocean Observation System would be established to improve

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CRS-36
the Nation’s capability to measure, track, explain, and predict events related directly
and indirectly to weather and climate change.
Subtitle E — Royalties Under Offshore Oil and Gas Leases. This
Subtitle would require that the Secretary of the Interior accept a lessee’s request to
modify certain leases established in 1998 and 1999 without price thresholds
(“covered leases”) to include price thresholds. Lessees holding “covered leases”
would not be eligible for new oil and gas leases in the Gulf of Mexico unless the
covered leases are modified to include price thresholds or the lessee would agree to
pay a newly established “conservation of resources fee.” The Subtitle would repeal
royalty relief provisions established by sections 344 and 345 of the Energy Policy Act
of 2005 (P.L. 109-58). It would also “reaffirm” the Secretary’s authority to impose
a price threshold in certain leases. This Subtitle is nearly identical to Title II of the
House-passed version of H.R. 6.
(More details on Subtitle E can be found in CRS Report RS22567, Royalty
Relief for U.S. Deepwater Oil and Gas Leases.)
Subtitle F — Additional Provisions. Subtitle F would establish an Oil
Shale Community Impact Assistance Fund. Also, for certain existing federal leases,
it would prohibit surface occupancy for oil and gas drilling on Colorado’s Roan
Plateau, which is federal land formerly designated as Naval Oil Shale Reserves.
(More details on oil and natural gas provisions in Subtitle F can be found in CRS
Report RL34111, Energy Policy Reform and Revitalization Act of 2007, Title VII of
H.R. 3221: Summary and Discussion of Oil and Gas Provisions.)
Also, the Minerals Management Service would be directed to report to Congress
on the status of regulations required by the Outer Continental Shelf Lands Act with
respect to wind energy production on the outer continental shelf.
Title VIII — Transportation and Infrastructure
This title assumes the provisions of H.R. 2701. It would promote energy
efficient transportation and public buildings and create incentives for the use of
alternative fuel vehicles and renewable energy. On June 20, 2007, the House
Committee on Transportation and Infrastructure ordered reported H.R. 2701 by voice
vote.
Subtitle A — Department of Transportation (DOT). A Center for
Climate Change and Environment would be established to plan, coordinate, and
implement strategies to reduce transportation-related energy use, mitigate the effects
of climate change, and address the impacts of climate change on transportation
systems and infrastructure.
Subtitle B — Highways and Transit. Part 1 provides support for public
transportation systems. Federal grants up to 100% of costs would be made available
to improve public transportation services that involve fare reductions. For projects
that involve acquiring clean fuel or alternative fuel vehicle-related equipment or
facilities for the purposes of complying with the Clean Air Act, federal grants would
be made available that cover up to 100% of net costs. The Surface Transportation

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CRS-37
Board’s mediation capacity would be expanded to assist public transportation
agencies seeking track rights of way with rail carriers. DOT would be directed to
create a pilot program to conduct vanpool demonstration projects in three urbanized
areas and two non-urbanized areas to increase vanpool use and the number of
vanpools in service.
Part 2 provides support for federal-aid highways. The federal share for
congestion mitigation and air quality (CMAQ) projects would be increased up to
100% of project or program cost. A sense of Congress would be established that in
constructing new roadways or rehabilitating existing facilities, state and local
governments should employ policies designed to accommodate all users, including
motorists, pedestrians, cyclists, transit riders, and people of all ages and abilities.
Subtitle C — Railroad and Pipeline Transportation. Part 1 would direct
DOT, in coordination with EPA, to establish and conduct a pilot grant program to
assist railroad carriers in purchasing hybrid locomotives, including hybrid switch
locomotives, in order to demonstrate the extent to which such locomotives increase
fuel economy, reduce emissions, and lower costs of operation. Also, DOT would be
directed to create a program of capital grants for the rehabilitation, preservation, or
improvement of railroad track (including roadbed, bridges, and related track
structures) of class II and class III railroads.
Part 2 would direct DOT to conduct feasibility studies for the construction of
pipelines dedicated to ethanol transportation. A report to Congress would be
required.
Subtitle D — Maritime Transportation. Part 1 would direct DOT to
establish a short sea transportation program and designate short sea transportation
projects to be conducted under the program to mitigate landside congestion. Short
sea shipping activities would be made eligible for support from DOT’s capital
construction fund. A report to Congress on the short sea transportation program
would be required. Part 2 would strengthen certain provisions that aim to prevent
pollution from ships.
Subtitle E — Aviation. DOT, in coordination with EPA, would be directed
to establish a pilot demonstration grant program to reduce noise, airport emissions,
greenhouse gas emissions, or water quality impacts. Each project grant would be
limited to a maximum of $2.5 million.
Subtitle F — Public Buildings. Under Part 1, for each prospective project
to construct, alter, acquire, or lease a building, the General Services Administration
(GSA) would be directed to prepare estimates of the future energy performance of
the building and a description of the use of energy efficient and renewable energy
systems, including photovoltaic systems, in carrying out the project. The period for
calculating life-cycle cost effectiveness in federal buildings would be extended from
25 years to 40 years. GSA would be directed to use up to $30 million authorized
from unobligated balances of the Federal Buildings Fund to support the installation
of a solar photovoltaic system for the DOE headquarters building in Washington,
DC.

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Part 2 would prohibit, except under certain circumstances, the purchase of
incandescent light bulbs for use in Coast Guard office buildings.
Part 3 would allow the Architect of the Capitol (AOC) to perform a feasibility
study regarding construction of a photovoltaic roof for the Rayburn House Office
Building. The AOC may construct a fuel tank and pumping system for E — 85 fuel
at or within close proximity to the Capitol Grounds Fuel Station. To the maximum
extent practicable, the AOC would be required to include energy efficiency measures,
climate change mitigation measures, and other appropriate environmental measures
in the Capitol Complex Master Plan. For the purpose of reducing carbon dioxide
emissions, the Architect of the Capitol would be directed to install technologies for
the capture and storage or use of carbon dioxide emitted from coal combustion in the
Capitol Power Plant. AOC would be directed to operate the steam boilers and chiller
plant at the Capitol Power Plant in the most energy efficient manner possible to
minimize carbon emissions and operating costs.
Subtitle G — Water Resources and Emergency Management
Preparedness. Part 1 would declare a federal policy that all federal water
resources projects reflect national priorities for flood damage reduction, navigation,
ecosystem restoration, and hazard mitigation and consider the future impacts of
increased hurricanes, droughts, and other climate change-related weather events. A
21st Century Water Commission would be established to project future water supply
and demand, impacts of climate change to the nation’s flood risk and water
availability; and associated impacts of climate change on water quality. EPA would
be directed to arrange with NAS for a study that will identify the potential impacts
of climate change on the nation’s watersheds and water resources, including
hydrological and ecological impacts, including the potential impacts of climate
change on water quality. The Secretary of the Army would be directed to ensure that
water resources projects and studies carried out by the Corps of Engineers take into
account the potential short and long term effects of climate change.
Part 2 would direct the Federal Emergency Management Agency (FEMA) to
conduct a comprehensive study of the increase in demand for FEMA’s emergency
preparedness, response, recovery, and mitigation programs and services that may be
reasonably anticipated as a result of an increased number and intensity of natural
disasters affected by climate change, including hurricanes, floods, tornadoes, fires,
droughts, and severe storms.
Title IX — Energy and Commerce
This title assumes the provisions of a draft bill adopted by the House Committee
on Energy and Commerce on June 28, 2007.
Subtitle A — Promoting Energy Efficiency. This subtitle has nine parts.
Part 1 on appliance efficiency would set new efficiency standards for residential
clothes washers, dishwashers, dehumidifiers, refrigerators, refrigerator-freezers,
freezers, electric motors, and residential boilers. DOE would be allowed to establish
regional variations in standards for heating and air conditioning equipment. DOE
would be required to complete a rulemaking process for furnace fans by 2013.

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Federal agencies would be directed to purchase devices that limit standby power use.
DOE would be directed to issue a final rule that sets energy conservation standards
for battery chargers. Certain energy efficiency measures for walk-in coolers and
walk-in freezers would be set by legislation. Also, several procedural changes would
be made to expedite the DOE rulemaking process.
Part 2 would set a mandatory target for lighting efficiency, set a standard for
incandescent reflector lamps, and require federal agencies to replace incandescent
lights with more efficient ones. Energy efficiency standards would be set by
legislation for metal halide lamp fixtures designed to be operated with lamps rated
between 150 watts and 500 watts.
Part 3 on residential buildings would encourage stronger state building codes,
require improved codes for manufactured housing, and reauthorize the DOE
Weatherization program. DOE would be directed to conduct a study of the
renewable energy system rebate program described in §206(c) of the Energy Policy
Act of 2005. The study would determine the minimum funding the program would
need to be viable and require a proposed implementation plan.
Part 4 on commercial and federal buildings would create an Office of High
Performance Green Buildings at DOE. The office would be required to use life-cycle
costing and allow agencies to retain cost savings. Federal procurement of green
building materials would be increased. Federal agencies would be required to
identify energy- and water-saving measures. Demonstration projects would be
required at federal facilities and universities. A national goal would be set to achieve
zero-net-energy use for new buildings constructed after 2025. Public outreach would
be established, including green building technical assistance and information. An
EPA program would be established to improve energy efficiency in data centers.
Certain green building renovation projects would be eligible for loan guarantees
under §1703 of EPACT. GSA would be directed to use available appropriations to
support a program to accelerate the use of geothermal (ground source) heat pump
equipment in federal facilities. In each purchase of meeting and conference services,
federal agencies would be required to consider the environmentally preferable (green)
features and practices of a vendor in a manner similar to that already implemented
by EPA. A grant program would be established to provide up to $1 million in
support of energy efficiency projects at universities.
Part 5 on industrial energy efficiency would direct EPA to identify the potential
for economically feasible waste energy recovery, create a grant program to support
waste energy recovery, and strengthen “clean energy centers” that analyze waste
energy recovery.
Part 6 on energy efficiency of public institutions would promote combined heat
and power systems in public institutions through federal revolving fund loans. EPA
would be directed to conduct a study of how sustainable building features, such as
energy efficiency, affect perceived indoor environmental quality for students in K-12
schools.
Part 7 on energy savings performance contracting (ESPC) would allow use of
appropriated funds for ESPCs, eliminate the ESPC program sunset, require training

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for federal agency contract officers, direct that energy savings be measured, and
create a DOE advisory committee to assist with deployment strategies.
Part 8 would create an advisory committee on energy efficiency financing.
Part 9 would establish an energy efficiency block grant program.
Subtitle B — Smart Grid Facilitation. This subtitle would create an
electric grid modernization commission to study and propose policies on “Smart
Grid” technology implementation. A federal 25% matching grant program would be
created to support implementation. DOE would be directed to help deploy
technologies and perform cooperative demonstration projects with electric utilities.
States would be required to consider regulatory standards that would allow utilities
to recover smart grid investments through rates and “decouple” utility profits from
electricity sales volume.
Subtitle C — Loan Guarantees. This subtitle would amend EPACT
Section 1702(c) on loan guarantees to clarify that DOE should approve project
amounts likely to attract other investment, may not establish a loan guarantee limit
below 80% of total project cost, and should require assurances that construction
workers will be paid prevailing wage rates. Also, categories of projects deemed
eligible in EPACT Section 1703 could not be excluded by language in appropriations
bills.
Subtitle D — Renewable Fuel Infrastructure and International
Cooperation. Part 1 of this subtitle would direct DOE to create a grant program
to help establish or convert infrastructure to use renewable fuels, including E85 (85%
ethanol). The EPACT authorization for grants to support cellulosic ethanol
production would be increased. A grant program would be created to support
production of flexible-fueled vehicles. Studies would also be required on the market
penetration of flexible-fueled vehicles, the feasibility of constructing dedicated
ethanol pipelines, the feasibility of using greater percentages of ethanol in fuel
blends, and the adequacy of railroad transportation for delivery of ethanol fuel. Part
2 of this subtitle would establish a grant program and advisory board for U.S.-Israel
energy cooperation. The provisions of this Subtitle are identical to those of H.R.
3238.
Subtitle E — Advanced Plug-In Hybrid Vehicles and Components.
This subtitle would establish a loan guarantee program for advanced battery
development, grant programs for plug-in hybrid vehicles, incentives for purchasing
heavy duty hybrids for fleets, and credits for various electric vehicles.
Subtitle F — Availability of Critical Energy Information. This Subtitle
would improve data collection needed by the DOE’s Energy Information
Administration to support efficient energy markets.
Subtitle G — Natural Gas Utilities. Each natural gas utility would be
required to make energy efficiency a priority resource and integrate energy efficiency
into its plans and planning processes. Further, state regulators would be directed to
consider crafting rate policies that align utility revenue recovery measures with

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incentives for energy efficiency measures. This Subtitle was added by floor
amendment (H.Amdt. 755), which was approved by voice vote.
Subtitle H — Federal Renewable Portfolio Standard (RPS). This
Subtitle would modify Title VI of the Public Utility Regulatory Policies Act of 1978
to establish an RPS for retail electric utilities that would be administered by DOE.
For each retail supplier that sells more than one billion kilowatt-hours (kwh) per year,
the RPS would set a minimum electricity production requirement from renewable
resources. The standard would start at 2.75% in 2010 and then rise annually until
reaching a peak of 15% in 2020. Electricity savings from energy efficiency measures
would be allowed to compose a maximum of 25% of the standard in any given year,
rising to a peak of 4% of the 15% total in 2020. Many provisions in this Subtitle are
similar to those of H.R. 969. This Subtitle was added by floor amendment (H.Amdt.
748), which was approved by a vote of 220 to 190.

(More details on Subtitle H can be found in CRS Report RL34116, Renewable
Energy Portfolio Standard (RPS): Background and Debate Over a National
Requirement.)
Subtitle I — Large and Small Scale Hydropower. Congress expresses
its recognition and support for renewable energy. In particular, this recognition and
support is conferred on clean, consistent, pollution-free large and small scale
conventional hydropower energy. This Subtitle was added by floor amendment
(H.Amdt. 755), which was approved by vote of 402 to 9.
H.R. 3221, Division B: “Renewable Energy and
Energy Conservation Act of 2007”
(formerly H.R. 2776)
Title XI — Production Incentives
This Title would extend the renewable electricity production tax credit (PTC)
for four years, expand the PTC to include ocean thermal and hydrokinetic (wave,
tide, and current) energy, extend the 30% business energy tax credit for solar and fuel
cell equipment for eight years, authorize $2 billion of clean renewable energy bonds,
and remove the cap on the tax credit for residential solar and fuel cell equipment.
(For more discussion of these tax provisions see CRS Report RL33578, Energy Tax
Policy.)
Title XII — Conservation
Subtitle A — Transportation. Transportation fuel incentives would set a
$4,000 credit for plug-in hybrid vehicles, establish a 50 cent per gallon production
tax credit for cellulosic ethanol fuel, extend the biodiesel production tax credit for
two years, increase the alternative refueling stations tax credit, create a fringe benefit
for bicycle commuters, and modify depreciation and expensing rules to close a
loophole for gas guzzlers by making the incentives available for fuel efficient

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vehicles. (For more discussion of these tax provisions see CRS Report RL33578,
Energy Tax Policy.)
Subtitle B — Other Conservation Provisions. Other energy efficiency
provisions include a tax credit bond for community programs to reduce greenhouse
gases, a tax credit bond for states to provide loans and grants for home improvements
and residential equipment, an extension of the tax deduction for commercial
buildings, an extension and modification of the appliance credit, and the
establishment of a five-year depreciation period for smart electric meters. Also, the
bill would clarify that the $1 per gallon production credit for renewable diesel would
be available only for fuel produced from biomass. A study of biofuels’ future
production potential and possible domestic impacts would be required. (For more
discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy.)
Title XIII — Revenue Provisions
Subtitle A — Denial of Oil and Gas Tax Benefits. (For discussion of
these tax provisions see CRS Report RL33578, Energy Tax Policy.)
Subtitle B — Clarification of Eligibility for Certain Fuel Credits. (For
discussion of these tax provisions see CRS Report RL33578, Energy Tax Policy.)
Title XIV — Other Provisions
Subtitle A — Studies. (For discussion of these tax provisions see CRS
Report RL33578, Energy Tax Policy.)
Subtitle B — Application of Certain Labor Standards on Projects
Financed Under Tax Credit Bonds. (For discussion of these tax provisions see
CRS Report RL33578, Energy Tax Policy.)

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Appendix B. Senate-Passed Version of H.R. 6:
“Renewable Fuels, Consumer Protection, and
Energy Efficiency Act”
The proposed Renewable Fuels, Consumer Protection, and Energy Efficiency
Act of 2007 (H.R. 6) is an omnibus energy policy bill that consists mainly of
provisions for energy efficiency and renewable energy. The House version of H.R.
6 was amended on the Senate floor. S.Amdt. 1502, an amendment in the nature of
a substitute, replaced the House version with the text of S. 1419.6 Several second
degree amendments to S.Amdt. 1502 were adopted. The Senate approved the
amended bill by a vote of 65-27 on June 21, 2007.
Key Provisions Adopted and Rejected
A description of some key provisions and amendments follow:
Renewable Fuel Standard (RFS). Section 111 would increase RFS to 8.5 billion
gallons per year by 2008, rising to 36 billion gallons by 2022.
Corporate Average Fuel Economy (CAFE) Standards. The CAFE standard in
Section 502 was modified by S.Amdt. 1792. The adopted provision proposes
increases to the combined average fuel economy standard for cars and light trucks
that would reach 35 miles per gallon (mpg) by 2020. This would be an increase of
about 10 mpg over current standards. The amendment (as modified by S.Amdt.
1843) was adopted by voice vote.
Oil Savings Provision. S.Amdt. 1505 established this provision as Section 251.
The provision calls for development of a plan to cut U.S. oil use by 2.5 million
barrels per day (mbd) by 2016, rising to 10 mbd by 2031, about 35% of projected
demand for that year. The amendment was adopted by a vote of 63-30.
Renewable Portfolio Standard (RPS).7 S.Amdt. 1537 would have added a new
title to create an RPS that would reach 15% by 2020. Certain energy efficiency
measures would have also been allowed to help fulfill the RPS. The amendment was
never considered for a vote and, after a successful cloture vote on S.Amdt. 1502, the
RPS amendment was ruled non-germane. Also, S.Amdt. 1538 would have amended
S.Amdt. 1537 to create a 20% “clean portfolio standard” that included renewables,
efficiency, coal, and nuclear energy. The amendment was tabled by a vote of 56-39.
6 S.Amdt. 1502 was based primarily on S. 1419, which, in turn, was composed of four bills.
These four bills, and the corresponding titles of S. 1419, are: Energy Savings Act (S. 1321),
Titles I, II, and III; Public Buildings Cost Reduction Act (S. 992), Title IV; Ten-in-Ten Fuel
Economy Act (S. 357), Titles V and VI; and the Energy Diplomacy and Security Act (S.
193), Title VII.
7 Under an RPS, retail electricity suppliers (electric utilities) must provide a minimum
amount of electricity from renewable energy resources or purchase tradable credits that
represent an equivalent amount of renewable energy production. The minimum requirement
is often set as a percentage share of a supplier’s total retail electricity sales.

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Tax Provisions. S.Amdt. 1704 would have added a new tax title that included
some of the provisions for renewables and energy efficiency in S. 1531. The
proposed amendment included a five-year extension of the renewable electricity
production tax credit. It also included many provisions for biofuels and some
provisions for oil, coal, and vehicles. The amendment failed to achieve cloture by
a vote of 57-36, and was subsequently ruled non-germane. A brief summary of each
of these eight titles in the Senate-passed version of H.R. 6 follows.
Title I — Biofuels for Energy Security and Transportation
Title I would increase the renewable fuel standard, set some standards for
greenhouse gas emissions reductions, and provide support for fuel infrastructure,
feedstocks, and biorefineries.
Subtitle A — Renewable Fuel Standard. Subtitle A would extend and
increase the renewable fuel standard (RFS), which establishes minimum annual
levels of renewable fuel in gasoline. The modified standard would start at 8.5 billion
gallons in 2008 and rise to 36 billion gallons in 2022. Starting in 2016, an increasing
portion of the requirement would have to be met with advanced biofuels, including
cellulosic ethanol, biobutanol, and other fuels derived from unconventional biomass
feedstocks. Renewable fuels produced from new biorefineries would be required to
achieve at least a 20% reduction in life cycle greenhouse gas emissions relative to life
cycle emissions from gasoline (§ 111[a][1][i][II]). A voluntary labeling program
would be established for renewable fuels, based on life cycle greenhouse gas
emissions (§ 111[i]). Fuel produced from biorefineries that displaces more than 90%
of the fossil fuels used in a biofuel production facility would qualify for additional
credits under the RFS (§ 112).
Subtitle B — Renewable Fuels Infrastructure. Subtitle B would provide
grants for renewable fueling infrastructure (§ 121), increase the Department of
Energy (DOE) bioenergy R&D funding authorization (§ 122), establish 11 bioenergy
research centers (§ 123), provide loan guarantees for renewable fuel facilities (§ 124),
provide research grants for states with low rates of ethanol production (§ 125),
provide grants for infrastructure for transportation of biomass to local refineries (§
126), establish a biorefinery information center (§ 127), create an alternative fuels
database (§ 128), set a labeling requirement for alternative fuels (§ 129), and set a
national biodiesel fuel quality standard (§ 130).
Subtitle C — Studies. Subtitle C would require that several studies be
conducted, covering specialized topics on biofuels, ethanol, electric vehicles, and
biodiesel.
Subtitle D — Environmental Safeguards. DOE would be directed to
create a grant program to encourage production of advanced biofuels (§161). Grant
awards would be made to projects that would have the greatest reduction in lifecycle
greenhouse gas (GHG) emissions. The projects must also reduce GHG emissions by
at least 50%. Studies, and subsequent reports to Congress, would be required on
environmental impacts of increased use of renewable fuels attributable to the
provisions of this bill (§162). Specific aspects would include air and water quality,
land use patterns, deforestation rates, GHG emissions, and the long-term capacity to

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produce biomass feedstocks. Also, EPA would be directed to study whether the
volumes of renewable fuel required under Subtitle A would adversely impact air
quality.
Title II — Energy Efficiency Promotion
Title II would set some new standards for energy efficient equipment, establish
goals for fuel savings, strengthen federal energy efficiency requirements, and
authorize several new programs for vehicles and grants.
Subtitle A — Promoting Advanced Lighting Technologies. Subtitle
A would promote advanced lighting technology by requiring all federal lighting to
be Energy Star rated by 2010 (§ 211), expanding efficiency standards for
incandescent reflector lamps (§ 212), creating the “Bright Tomorrow” lighting prizes
for solid state (LED) lighting developments (§ 213), and establishing a “Sense of the
Senate” to pass mandatory energy efficiency performance targets for lighting
products (§ 214). Also, the Committee markup added a notable provision that did
not appear in S. 1115. That provision would authorize grants to support construction
of solar, wind, geothermal, ocean, biomass, landfill gas, and Alaska small
hydropower projects (§ 215).
Subtitle B — Expediting New Energy Efficiency Standards. Subtitle
B would establish, by statute, new energy efficiency standards for residential boilers
(§ 227), electric motors (§ 229), and some home appliances (§ 230).8 DOE would
be directed to set standards by rulemaking for furnace fans (§ 223). Also, DOE
would be allowed to set standards for multiple components (§ 221) and regional
standards for heating and cooling equipment (§ 222). Further, this subtitle would
authorize R&D on improved efficiency for appliances and buildings in cold climates
(§ 231) and provide incentives for the manufacture of high-efficiency consumer
products (§ 232). Other provisions would guide expedited rulemakings (§ 224),
clarify limits to federal preemption of state standards (§ 225), and require Energy
Guide labels for several types of consumer electronic products (§ 226). Also, the
Committee markup added a provision that would direct DOE to establish a program
that supports, develops, and promotes the use of new technologies to improve energy
efficiency in materials manufacturing and energy-intensive industries (§ 233).
Subtitle C — Promoting High Efficiency Vehicles, Advanced
Batteries, and Energy Storage. Subtitle C would promote high-efficiency
vehicles, advanced batteries, and energy storage. DOE would be authorized to fund
an R&D program on light-weight materials (§ 241). A loan guarantees program
would be created for facilities that manufacture fuel-efficient vehicles (§ 242).
Funding awards for qualified investments would be authorized to refurbish
manufacturing facilities that produce advanced technology vehicles (§ 243). A 10-
year R&D program would be authorized to support U.S. competitiveness in global
energy storage markets, and a five-year R&D program would be authorized for
electric drive technologies (§ 244). Also, the Committee markup added a provision
8 Identical provisions for boilers, motors, and home appliances appear in S. 1101 and H.R.
2083.

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that would direct DOE to establish a competitive grant program for state, regional,
and local government entities to demonstrate electric drive vehicles. DOE would
also be required to establish a program to deploy technologies that would achieve
near-term oil savings in the transportation sector (§ 245).
Subtitle D — Setting Energy Efficiency Goals. Subtitle D would set
several energy efficiency goals that include reducing gasoline use 45% by 2030 (§
251) and improving energy productivity by 2.5% in 2012 and each year thereafter
through 2030 (§ 252).9 Also, DOE would be authorized to conduct a four-year
national media campaign to educate consumers to save energy and reduce oil use (§
253), and federal agencies would be authorized to carry out programs for
demonstration and use of advanced electricity transmission and distribution
technologies (§ 254).
Subtitle E — Promoting Federal Leadership in Energy Efficiency
and Renewable Energy. Subtitle E would promote federal leadership in energy
efficiency and renewable energy. Federal and state fleets would be required to reduce
petroleum use 30% by 2016 (§ 261). The renewable energy share of federal energy
purchases would increase to 15% by 2015 (§262). The authorization for federal
agencies to use Energy-Saving Performance Contracts (ESPCs) would be extended
permanently (§ 263). Federal buildings would be required to reduce energy use 30%
by 2015 (§ 264). DOE would be directed to identify federal sites for installing
combined heat and power (§ 265). Federal buildings would be required to reduce
fossil energy use by 50%, compared with similar buildings from the past that were
not subject to the standard (§ 266). The Department of Housing and Urban
Development (HUD) would be required to update efficiency standards for all public
and assisted housing (§ 267). DOE would be authorized to conduct R&D and
deployment activities that help increase the energy-efficiency of commercial
buildings (§ 268).
Subtitle F — Assisting State and Local Governments in Energy
Efficiency. Subtitle F would improve energy efficiency assistance to state and local
governments by increasing the authorization for the DOE Weatherization program
(§ 271), reauthorizing the State Energy program (§ 272), requiring state utility
regulatory commissions to consider federal standards to promote energy efficiency
(§ 273), authorizing the National Renewable Energy Laboratory (NREL) to provide
technical assistance (§ 274), authorizing grants to local governments (§ 275),
authorizing grants to universities for demonstration projects (§ 276), authorizing
workforce training programs (§ 277), and authorizing funds for education programs
to reduce school bus idling (§ 278).
Subtitle G — Marine and Hydrokinetic Renewable Energy
Promotion. DOE would be directed to create an R&D program focused on
technology that produces electricity from waves, tides, currents, and ocean thermal
differences (§291-292). A report to Congress would be required. Also, DOE would
9 The description of Section 252 on page 14 of the Committee’s report (S.Rept. 110-65) says
that “national energy productivity” would be measured as “gross domestic product (GDP)
per unit of energy input.”

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be directed to establish national ocean energy research centers at one to six
universities (§293).
Title III — Carbon Capture and Storage R&D and
Demonstration
Title III would call for large-scale testing of carbon dioxide (CO ) storage in
2
geological formations, establish competitive funding awards, direct that a national
storage capacity assessment be conducted, and require that the Department of Energy
(DOE) demonstrate the use of large-scale capture technologies at industrial facilities.
Title IV — Cost-Effective and Environmentally Sustainable
Public Buildings
Subtitle A — Public Buildings Cost Reduction. Subtitle A would direct
the General Services Administration (GSA) to establish a program to speed the use
of cost-effective energy-efficient lighting equipment and other technologies and
practices (§402). Further, GSA would be required to prepare a five-year plan to
replace inefficient lighting in GSA buildings using available funds. Also, an EPA
matching grant program would be created to help local governments renovate
buildings to improve energy efficiency (§403). For this program, $20 million would
be authorized.
Subtitle B — Photovoltaic System for DOE Headquarters. GSA
would be directed to use up to $30 million would be authorized from unobligated
balances of the Federal Buildings Fund to support the installation of a solar
photovoltaic system for the DOE headquarters building in Washington, D.C.
Subtitle C — High Performance Green Buildings.
Part 1 would direct GSA to establish an Office of High-Performance Green
Buildings and a Green Building Advisory Committee to support R&D and outreach
to spur the federal government toward the construction of high performance green
buildings. A green building information clearinghouse would be established. The
Office would be directed to establish a standard for certification of green buildings.
A report to Congress would be required.
Part 2 would create a program for Healthy High-Performance Schools that aims
to involve states, local governments, and school systems building green schools.
EPA, in consultation with the Department of Education, would be allowed to provide
grants to state agencies to provide technical assistance and help with the development
of state plans for school building design. Also, EPA would be directed to develop
model voluntary guidelines for school site selection. In addition to other
environmental aspects, the grants and guidelines would have a focus on energy
efficiency, natural daylighting, and other energy-related features.
Part 3 on Strengthening Federal Leadership would direct the Office of Green
Buildings to identify incentives that would encourage the use of green buildings in
federal operations. Incentives could include recognition awards and agency retention

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of cost savings (§451). The Office of Federal Procurement Policy would be directed
to revise acquisition regulations to require that acquisition, construction, and major
renovations employ green design and to give preference in leasing to buildings that
are energy-efficient (§452). The Comptroller General would be directed to conduct
an audit of the implementation of this Subtitle and submit a report to Congress that
describes the findings (§453). Strategies for addressing storm water runoff would be
required for federal facility development projects (§454).
Part 4 would call for a Demonstration Project. The Office of Green Buildings
would be directed to prepare guidelines for the implementation of a federal
demonstration project that would contribute to the research goals of the Office.
Funding would be authorized at $10 million per year over five years.
Title V — Corporate Average Fuel Economy Standards
Title V, the Ten-in-Ten Fuel Economy Act of 2007, would require that the
corporate average fuel economy standard (CAFE) for new cars and light trucks be
increased to 35 miles per gallon (mpg) by 2020 and require a 4% annual increase for
10 years thereafter. Starting in 2011, a 4% annual increase would also be required
for medium- and heavy-duty trucks.
Title VI — Price Gouging
Title VI would criminalize price gouging in fuel markets during an energy
emergency.
Title VII — Energy Diplomacy and Security
Title VII would express the sense of Congress on several aspects of international
energy cooperation, with a special emphasis on increasing the use of sustainable
energy sources. The Department of State would be encouraged to establish four new
types of administrative mechanisms. One type of mechanism would be strategic
energy partnerships with the governments of major energy producers and consumers,
and with governments of other countries. A second type would be petroleum crisis
response mechanisms with the governments of China and India. A third would be
a Western Hemisphere energy crisis response mechanism. A fourth would be a
regionally-based ministerial Hemisphere Energy Cooperation Forum. Also, the
Department of State would be encouraged to approach other governments in the
Western Hemisphere to cooperate in establishing a “Hemisphere Energy Industry
Group” of industry and government representatives, which would be coordinated by
the U.S. government.
The President would be encouraged to introduce the topic of “the merits of
establishing an international energy program application procedure” for discussion
at the Governing Board of the International Energy Agency. Also, the bill would
establish a “Hemisphere Energy Cooperation Forum,” that would be encouraged to
implement an Energy Crisis Initiative, an Energy Sustainability Initiative, and an
Energy for Development Initiative.

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Title VIII — Miscellaneous
Title VIII, Miscellaneous, would require that DOE study and report on the laws
and regulations that affect the siting of privately owned electric distribution wires on
and across public rights-of-way.
Senate Amendment 1704 (Energy Tax Provisions)
A package of tax provisions (S.Amdt. 1704) was considered during Senate floor
action on the proposed substitute to H.R. 6. The proposed tax package amendment
included incentives for renewable energy and energy efficiency as well as oil and
natural gas revenue offset provisions. The proposed revenue offsets were similar to,
but more extensive than, the offsets proposed in Title XIII, Subtitle A, of H.R. 3221.
However, S.Amdt. 1704 failed by a vote of 57-36 on a cloture motion to limit
debate.10
Part I — Advanced Electricity Infrastructure
Part I would have extended the PTC for 5 years and expanded it to include
ocean thermal and hydrokinetic (wave, tide, and current) energy. Also, it would have
extended the 30% business energy tax credit for solar and fuel cell equipment for 8
years and repealed the public utility exclusion. It would have authorized $3.6 billion
of CREBs, and raised the cap on the tax credit for residential solar and fuel cell
equipment. A new credit would have been created for residential wind equipment.
Two incentives for electric transmission would have been established. Also, Part I
would have improved depreciation for energy management devices.
Part II — Carbon Dioxide Sequestration
Part II would have created three tax incentives for carbon dioxide sequestration.
Part III — Domestic Fuel Security
Part III would have provided several tax incentives for production of cellulosic
ethanol and certain other biofuels.
Part IV — Advanced Technology Vehicles
Part IV would have created a credit for plug-in hybrids, capped at $7,500 to
$15,000, depending on vehicle weight. The credit for alternative-fueled vehicles
would have been extended for 2 years. An exclusion from heavy truck tax would
have been established for idling reduction units and certain truck insulation measures.
10 For more details, see CRS Report RL33578, Energy Tax Policy: History and Current
Issues, by Salvatore Lazzari.

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Part V — Conservation and Energy Efficiency
Part V would have extended the existing home efficiency retrofit credit for 2
years, the new home credit for 3 years, the commercial building credit for 5 years,
and the home appliance credit would have been extended and expanded.
Part VI — Accountability Studies
Part VI would have called for a cost-benefit study of pollution reduction, a study
of the effect of tax benefits for prices on consumer goods, and a study of tax-credit
bonds.
Part VII — Other Provisions
Subtitle A on Energy Advancement and Investment had two subparts. Subpart
A would have established certain tax measures for timber property. Subpart B would
have set out certain tax measures for coal. Subtitle B on Revenue Raising Provisions
included several tax modifications that aimed to reduce certain subsidies for oil and
natural gas development. The resultant funds would have been used to offset the
costs associated with the new tax incentives for energy efficiency and renewable
energy.
Clean Renewable Energy Incentives Act
(S. 1531)
The proposed Clean Renewable Energy and Economic Development Incentives
Act of 2007 (S. 1531) is an omnibus energy tax policy bill that consists mainly of
provisions for renewable energy. It has two titles. Title I proposes Tax Incentives for
Energy Conservation and Exploration. Title II proposes Investment Tax Credits with
Respect to Solar Energy Property and Manufacturing.
On the Senate floor, S.Amdt. 1704 would have added a new tax title that
included some of the provisions for renewables and energy efficiency in S. 1531.
The amendment failed to achieve cloture by a vote of 57-36, and was subsequently
ruled non-germane.
Title I — Tax Incentives for Energy Conservation and
Exploration
Title I of S. 1531 would extend three existing tax incentives and establish six
new ones.11 Section 101 would extend the renewable energy electricity production
11 The extensions are in §101, §102, and §106. The new incentives are in §103, §104, §105,
§107, §108,and §109.

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tax credit (PTC) for 10 years, to the end of 2018.12 For certain large facilities, such
as geothermal and biomass power plants, credit eligibility could be extended for up
to two years after the placed-in-service deadline.13 Section 102 would extend the
clean renewable energy bonds (CREBs) for 10 years.14 The national total bond limit
would be $1.2 billion per year for 2007 through 2008 and $1.0 billion per year for
2009 through 2018. Section 103 would establish a tax credit bond for water
conservation. Section 104 would create a 10% investment tax credit for geothermal
exploration. For residential installations of small wind equipment, Section 105
would establish a 30% investment tax credit, with a limit of $1,000 per kilowatt
(kw). Section 106 would extend for five years the investment tax credit for the
construction of new energy efficient homes.15 Section 107 would create a 20%
investment tax credit for manufacturing equipment used to produce advanced
batteries. Section 108 would establish renewable school energy bonds, with a
national bond limit of $50 million in 2008, $100 million in 2009, and $150 million
in 2010. Under Section 109, bonds would be issued to finance new renewable energy
facilities, including equipment that uses tidal, wave, current, and ocean thermal
energy.
Title II — Investment Tax Credit with Respect to Solar Energy
Property and Manufacturing
Title II of S. 1531 would permanently extend two tax incentives for solar energy
equipment and establish three new incentives for solar equipment.16
Subtitle A — Solar Energy Property. Section 201 would extend
permanently the 30% value of the investment tax credit for business installations of
solar equipment.17 In Section 202, the investment tax credit for solar (30%) and
geothermal (10%) equipment would be made available to public utilities. Under
Section 203, the 30% residential energy efficiency investment tax credit would be
12 The PTC provision of the Tax Relief Act of 2006 (P.L. 109-432, §201) will expire at the
end of 2008. The PTC was previously set by the Energy Policy Act (EPACT, §1301)
13 To qualify under this provision, such plants would have to fulfill two conditions. First,
the plant would have to be under construction at the time that the placed-in-service deadline
occurs. Second, the plant would have to be operational, producing and selling electricity,
within two years after the deadline.
14 The CREBs provision of the Tax Relief Act (§202) will expire at the end of 2008. CREBs
were created by EPACT (§1303).
15 The new energy efficient new homes credit in the Tax Relief Act (§205) will expire at the
end of 2008. The new homes credit was created by EPACT (§1332).
16 The credit extensions are in §201 and §203. The new incentives are in §202, §204, and
§211.
17 The 30% value of the business solar investment tax credit in the Tax Relief Act (§207)
will revert back to 10% at the end of 2008. The 30% value of this credit was established by
EPACT (§1337).

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extended permanently.18 Further, the cap would be raised to $3,000/kw for solar
electric equipment, $2,000 for solar heating and cooling equipment, and $500 for fuel
cells. Section 204 would make certain solar equipment eligible for a three-year
accelerated depreciation period.
Subtitle B — Promotion of Solar Manufacturing in the United
States. Section 211 would establish a 30% investment tax credit for facilities that
manufacture solar energy equipment.
(For more discussion of the provisions in this bill see CRS Report RL33578, Energy
Tax Policy.)
18 The residential energy efficiency credit in the Tax Relief Act (§206) will expire at the end
of 2008. This credit was created by EPACT (§1335).

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