BACK | HOME

NASEO News

August 2003

Side-by-Side Comparisons of Energy Bills Available

Posted: August 28, 2003

The Congressional Research Service has released two side-by-side comparison reports for the energy bill. The first report examines the non-tax provisions of the bills and can be accessed by clicking here. The second CRS report compares the tax incentive portions of the bill and can be accessed by clicking here. Following is a short summary of the history of these two bills and a few major differences as reported by CRS.

Continuing a legislative effort that began in the 107th Congress, the House and Senate in the first session of the 108th passed two distinct versions of an omnibus energy bill (H.R. 6), which would be the first comprehensive energy legislation in more than 10 years. Although Republicans are in the majority in both chambers, the conference on H.R. 6 will be complicated by deep divisions within the Senate on energy policy. Facing numerous amendments and limited floor time, the Senate set aside the energy bill it had been considering in the 108th Congress (S. 14) and passed the text of last year’s Senate energy bill (H.R. 4). Because last year’s bill was passed when the Senate was under a Democratic majority, some Republican leaders have pledged to re-insert provisions from this year’s S. 14 in conference.

For example, the House version of H.R. 6, which passed April 11, 2003, includes a key component of the Bush Administration’s energy strategy: opening the Arctic National Wildlife Refuge (ANWR) to oil and gas exploration and development — with a 2,000-acre limitation on production and support facilities. The Senate version, approved July 31, 2003, leaves ANWR off-limits to drilling.

The electricity provisions of H.R. 6 would continue to change the regulatory requirements for the wholesale electric market. In general, with some differences, both the House and Senate versions would repeal the Public Utility Holding Company Act (PUHCA) and give the Federal Energy Regulatory Commission (FERC) and state utility commissions access to utility books and records. Both would also repeal the mandatory purchase requirement of the Public Utility Regulatory Policies Act (PURPA) when a competitive electric market exists.

Automobile and light truck fuel efficiency was the subject of considerable debate in both houses. The Senate version would require development of new Corporate Average Fuel Economy (CAFE) standards, but it also would freeze "pickup trucks" at the current light truck standard of 20.7 mpg. The House version would authorize appropriations to NHTSA to conduct further rulemakings and would require a study of the feasibility and effects of reducing automobile fuel use.

The House version of H.R. 6 includes a renewable fuel standard (RFS) that would require the blending of 2.7 billion gallons of renewable fuel with gasoline in 2005. The required volume would rise to 5 billion gallons annually by 2015, while the Senate version would require that target to be met by 2012. Several other controversial environmental provisions are contained only in the Senate-passed bill, particularly programs to address global climate change and renewable energy requirements for electricity providers.

Department of Agriculture Awards $21 Million to Support Rural Clean Energy

Posted: August 25, 2003

The U.S. Department of Agriculture announced the selection of 113 applications for renewable energy systems and energy efficiency improvement grants in 24 states totaling $21,207,233. The grant program is part of an effort to increase America's energy independence through the development of renewable energy resources as well as improving efficiency of existing systems.

"America's rural businesses, farmers and ranchers are key to the development of renewable energy for our country," Under Secretary for Rural Development Thomas C. Dorr said during a press conference here with Senator Charles Grassley. "The capital investments being made through these grants will support the conversion of our natural
resources and residuals of farming operations into new sources of energy and help meet the energy goals outlined by President Bush in 2001."

The 2002 Farm Bill authorized the Renewable Energy Systems and Energy Efficiency Improvements program. Funding to assist with the development of renewable energy systems included: 35 applications totaling $7.4 million to support wind power, 30 applications totaling $7 million for anaerobic digesters, 6 applications totaling $1.1 million solar and 16 applications totaling $3.9 million for a ethanol plants/anaerobic digesters, direct combustion and fuel pellet systems. Awards were made on a competitive basis for the purchase of renewable energy systems and to make energy improvements.

A list of selected applicants can be found at the USDA Rural Development web site. Background information on the 2002 Farm Bill and related clean energy programs can be found on the NASEO Agriculture and Rural Development Task Force web page.

NASEO Presents on Natural Gas Demand Reduction at NGA Annual Meeting

Posted: August 18, 2003

At the National Governors Association (NGA) 95th Annual Meeting in Indianapolis, Indiana, on August 18, 2003, NASEO's Chairman, John Nunley, III, presented NASEO's recommendations on natural gas-related demand reduction and energy efficiency programs.  The presentation included examples of State Energy Office efficiency efforts, as well as suggestions for targeted programs to reduce the impacts of higher natural gas prices on public facilities, businesses and consumers. Additionally, Mr. Nunley stressed the important role that State and Territory Energy Offices play in preparing for and mitigating energy emergencies.  To read Mr. Nunley's presentation, click here.

NERC Says About 41,100 MW Restored

Posted: August 15, 2003

On August 15, 2003, the North American Electric Reliability Council (NERC) announced that the exact cause of yesterday’s massive power outage is not known, but may have been caused by the loss of several major transmission lines in the upper Midwest. Investigations and data collection will continue. NERC indicates the following load losses in yesterday’s outage:

• PJM Interconnection - 4,000 MW
• Midwest ISO – 18,500 MW
• Hydro Quebec - 100 MW
• Ontario IMO – 21,000 MW
• ISO New England – 2,500 MW
• New York ISO – 24,400 MW

That’s a total of 61,800 MW lost. At 6:00 a.m. (EST) this morning, August 15, NERC reported that about 41,100 MW have been restored. NERC was formed by the electric industry after the New York blackout of 1965. NERC developed reliability standards and grid operating protocols through a consensus process (also see NASEO 1999 correspondence on NERC).

Former NASEO Chairman’s Report on Electric Reliability

Posted: August 15, 2003

The National Council on Electricity Policy (NCEP) published a report on reliability in October 2001, Dimensions of Reliability: A Paper on Electric System Reliability for Elected Officials. While nearly two years old, the paper authored by former NASEO Chairman Rich Sedano provides a great lay-of-the-land on reliability and electric security issues. The NCEP was formed by NASEO, NARUC, NCSL and FERC in 1994 with support from DOE and EPA.

Another useful energy security background report was written by the Chairman of the State Energy Advisory Board and NASEO member Maurice Kaya, Hawaii. Mr. Kaya’s article on Energy Security and the State Energy Program points to the importance of state-federal coordination on energy security issues to address reliability, diversity of supply, and energy efficiency.

Secretary of Energy Announces SEP Special Projects Awards

Posted: August 14, 2003

Secretary of Energy Spencer Abraham announced on August 13, 2003, that the Department of Energy (DOE) will provide $17,390,442 for 187 energy efficiency and renewable energy projects in 48 states, the District of Columbia and one territory. Funding is being provided through DOE’s State Energy Program Special Projects competitive grants.

“President Bush’s National Energy Policy recognizes the important role states play in promoting energy efficiency and renewable energy strategies,” Secretary Abraham said. “These special energy projects will help conserve energy, provide jobs, increase our national energy security and reduce the need for new electricity generating plants.” State Energy Offices will use these funds to improve the energy efficiency of schools, homes and other buildings; promote energy-efficient industrial technologies; and support renewable energy sources such as solar, wind, geothermal and biomass. Some projects will create opportunities for distributed energy resources. For more information on the announcement go to www.energy.gov and press releases.

NASEO Annual Meeting Final Agenda Available

Posted: August 12, 2003

Most of the 56 State and Territory Energy Offices (and many others) have registered for the NASEO Annual Meeting in Austin, Texas, September 14-17, 2003. The agenda is nearly final and available by clicking here. Following are a few of the sessions and confirmed presenters:

• David Garman, Assistant Secretary Office of Energy Efficiency and Renewable Energy will discuss EERE and answer attendees’ questions.
• Natural gas supplies and trends will be addressed in a special session with experts on LNG, demand reduction, and consumer price impacts.
• Energy emergency preparedness and response remain key concerns. DOE’s Office of Energy Assurance and the National Energy Technology Laboratory will update attendees on state-federal-industry coordination.
• Green power is rapidly gaining momentum in the marketplace. Hear the latest news on important trends from Paul Thomas, CEO and President, Green Mountain Energy.
• Guy Caruso, Administrator of the U.S. Energy Information Administration will present EIA’s data on oil, natural gas and other key energy supplies—an important advanced look on the upcoming heating season for meeting attendees.
• Hydrogen is the new energy watchword. DOE’s Hydrogen, Fuel Cells, and Infrastructure Director, Steve Chalk, will inform attendees about important efforts to begin the move toward a hydrogen economy.
• The State Technology Advancement Collaborative (STAC) is a promising pilot to deliver cost-shared funding for federal-state energy priorities. STAC Program Director Robert Kripowicz will inform attendees about what’s to come from this new RDD&D collaborative.

For more information about the meeting or to learn about sponsorship and exhibit opportunities click here.

Virginia Governor Signs Energy Efficiency Executive Order

Posted: August 8, 2003

On July 23, 2003, Virginia’s Governor Mark Warner signed Executive Order 54, Energy Conservation by State Agencies, charging all executive branch agencies to reduce energy costs and consumption in state government operations, with the short-term goal of all agencies reducing consumption by at least seven percent by 2004, when compared to a 2002 baseline. An intermediate goal of reducing energy usage by at least 10 percent by 2006 relative to a 2002 baseline is also ordered.  The Department of Mines, Minerals and Energy (State Energy Office) is responsible for providing technical assistance to state agencies in achieving the savings. To access a copy of the order, click here.

< back to top >