2005 09 21 EPAct of 2005 - VA Ind Energy Users Group

8/14/2019 2005 09 21 EPAct of 2005 - VA Ind Energy Users Group

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Virg in ia Indust r ia l Energy User Group

Annual Meet ing

The Energy Policy Act of 2005

Ed Kee

September 21, 2005


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PA Knowledge Limited 2005. All rights reserved. - VIEUG 21 September 2005 - 2

What s NOT in t he Energy Pol ic y Ac t

Energy

Policy Actof 2005

Renewable PortfolioStandards calling for 10% ofelectricity to be generatedfrom renewable (wind, solar,

etc.) sources by 2020

Increase in vehiclefuel efficiencystandards

Expansion of drilling to

Alaska wildlife preserveand federal offshore waters

Ban or control of new

gas-fired generationfacilities

Specific targets fornew coal or nucleargeneration facilities

Requirement for utilities to puttransmission assets under control of

an independent transmission providersuch as a RTO or ISO

Endorsement of theKyoto Protocol

Overview . . .


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Promoteenergy

conservationand

efficiency Increaseproduction ofdomestic oil

and gas

Increaseproduction of

renewable

energysupplies

Diversifypower

generation fuelmix away from

natural gas

Increasereliability &capacity of

electric & gastransmission

systems

US committedto reduce

greenhousegas emissions

Energy

PolicyAct of2005

K ey Areas

A negotiatedcompromise;with four yearsof on-again,off-again effort in

the US Congress.

The aim is toincrease US

energy securityand reduceenergy costs.

Overview . . .


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Increaseproduction ofdomestic oil

and gas


renewableenergy

suppliesDiversify powergeneration fuelmix away from

natural gas



systems



EnergyPolicyAct of2005

Elec t r i c i t y

Energy Conservation & Efficiency:

Establishes tax credits & funding for investment in cleancoal power

Production tax credits and other incentives for newnuclear power plants

Reduces T&Ddepreciation period

New procedures for sitingtransmission lines (federalpreemption authority)

Reduces tax penalty fortransfer of transmissionassets to an independenttransmission company

Mandatory enforcement ofreliability standards underFERC jurisdiction

Extends production taxcredit eligibility to 12/07for investment inrenewable electricity

generation

Provides for $800million of tax-creditbonds for renewableenergy investment bytax-exempt public

power systems Establishes soft goal of

10 GW of installed non-hydro renewablegenerating capacity by2015

Mandates use of 7.5billion gallons/year ofethanol as gasolineadditive by 2012

Relaxes federal hydrolicensing standards andprovides tax incentives

for hydro efficiency anddam conversioninvestments

Reliability & Capacity:

Energy efficiency standards for consumer appliances and federal buildings

Provides tax credits for residential and business investment in energy-efficient technologies

Renewables:

Generation Fuel Mix:

Promote

energyconservationand efficiency

Repeal of PUHCA

Reform of PURPA no

purchase obligation inestablished electricitymarkets

Other:

Implications . . .


5/9 PA Knowledge Limited 2005. All rights reserved. - VIEUG 21 September 2005 - 5

Promoteenergy

conservationand efficiency


and gas


renewableenergy

suppliesDiversify powergeneration fuelmix away from

natural gas



systems



EnergyPolicyAct of2005

Nat ura l Gas

Reduces federal tax androyalty burden on Oil & Gasexploration and production,gas gathering and distribution,oil refining, prepayment forlong-term gas purchases

Directs Department of Interiorto conduct inventory of O&Gresources within federal landand waters

Deep well productionincentives

Production of Oil & Gas:

FERC jurisdictionover siting of LNGterminals

Enhances FERCjurisdiction over gas

pipeline construction Enhances FERCjurisdiction over gasstorage

Supply and Reliability:

Implications . . .



Promoteenergy

conservationand efficiency


and gas


renewableenergy

suppliesDiversify power

generation fuelmix away from

natural gas



systems



Energy

PolicyAct of2005

Indust r ia l Users

Energy Conservation & Efficiency:

Provides tax credits for residential and businessinvestment in energy-efficient technologies:

$2.1 billion in tax incentives for efficiency andconservation efforts

Commercial buildings: tax deduction of up to $1.80

per-square-foot for buildings designed to use 50%less energy than required by the 2001 ASHRAE 90.1model commercial code.

DOE is authorized to enter into voluntary agreementswith industrial companies to reduce their energy intensity

by at least 2.5% each year for 10 yearsand to publicizetheir achievements

Implications . . .

Source: Alliance to Save Energy



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Introduction To PA . . .



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Introduction To PA . . .

IndustrialEnergy


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2005 09 21 EPAct of 2005 - VA Ind Energy Users Group

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