110 HR 6067 IH: Invest in Energy Independence U.S. House of Representatives 2008-05-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 6067 IN THE HOUSE OF REPRESENTATIVES May 15, 2008 Mr. Lampson (for himself, Mr. Edwards, Mr. Markey, Mr. Shays, Mr. Gene Green of Texas, Mr. Inglis of South Carolina, Mr. Moore of Kansas, Mr. Cramer, Mr. Kind, Mr. Bartlett of Maryland, Mr. Welch of Vermont, Mr. Hill, Ms. Giffords, Mr. Boswell, Mr. Bishop of Georgia, Mr. Wilson of Ohio, Mr. Chandler, Mr. Hall of New York, Mr. Nadler, Mr. Inslee, Mr. Kagen, and Mr. Israel) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Science and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Energy Policy and Conservation Act to help reduce the oil prices to consumers, to reduce the cost of petroleum acquisition for the Strategic Petroleum Reserve, to better match the composition of the Strategic Petroleum Reserve to refinery requirements in the United States, to fund energy research and development, and for other purposes.

1.

Short title

This Act may be cited as the Invest in Energy Independence Act.

2.

Findings

Congress finds the following: (1)The composition of petroleum that is currently being acquired for the Strategic Petroleum Reserve is putting upward pressure on world oil prices and the ultimate price of gasoline and other petroleum products for consumers. (2)The quality of petroleum that is currently being acquired for the Strategic Petroleum Reserve is contributing to the growing disparity between the types of petroleum in the Reserve and the current processing capabilities of petroleum refineries in the United States. (3)The composition of petroleum in the Strategic Petroleum Reserve should more closely match the current processing capabilities of petroleum refiners in the United States, which should reduce the cost of acquiring petroleum for the Reserve. (4)Lighter grade petroleum with an API gravity of 35 degrees or higher is in significantly greater demand than heavy grade petroleum with an API gravity of 26 degrees or lower, creating a significant premium in the price of light grade petroleum relative to heavy grade petroleum. (5)Significant additional funding is needed for important energy research and development activities that will help reduce United States dependence on oil and transform our energy infrastructure through the adoption of clean domestic energy technologies. (6)Current acquisitions of petroleum for the Strategic Petroleum Reserve are pursued on a volume-per-month basis, which is not as cost-effective as other approaches that take advantage of market fluctuations.

3.

Definitions

In this Act— (1)the term light grade petroleum means— (A)crude oil in the Strategic Petroleum Reserve categorized as Bayou Choctaw Sweet, Big Hill Sweet, West Hackberry Sweet, or Bryan Mound Sweet; and (B)oil acquired for storage in the Strategic Petroleum Reserve with one of the categories of oil referred to in subparagraph (A); (2)the term heavy grade petroleum means crude oil with an API gravity of 26 degrees or lower; and (3)the term Secretary means the Secretary of Energy.

4.

Objectives

The objectives of this Act are as follows: (1)To increase the total inventory level in the Strategic Petroleum Reserve without the need for additional appropriations. (2)To reduce the cost of petroleum acquisition for the Strategic Petroleum Reserve. (3)To provide increased funding to accelerate energy research and development that will reduce the United States dependence on oil, transform the energy infrastructure through the adoption of clean domestic energy technologies, and reduce the emissions of greenhouse gases. (4)To modernize the composition of petroleum in the Strategic Petroleum Reserve to reflect the current processing capabilities of refineries in the United States.

5.

Modernization of the Strategic Petroleum Reserve

(a)

Initial petroleum exchange from the strategic petroleum reserve

Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary shall publish a plan not later than 30 days after the date of enactment of this Act to— (1)exchange as soon as possible light grade petroleum from the Strategic Petroleum Reserve, in an amount equal to 10 percent of the total number of barrels of crude oil in the Reserve as of the date of enactment of this Act, for an equivalent volume of heavy grade petroleum plus any additional cash bonus bids received that reflect the difference in the market value between light grade petroleum and heavy grade petroleum and the timing of deliveries of the heavy grade petroleum; (2)from the gross proceeds of the cash bonus bids, deposit the amount necessary to pay for the direct administrative and operational costs of the exchange into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); (3)deposit 90 percent of the remaining net proceeds from the exchange into the account established under section 6(a); and (4)deposit the remaining balance into the SPR Petroleum Account to acquire additional petroleum for the Strategic Petroleum Reserve. (b)

Study of the potential for additional exchanges from the strategic petroleum reserve

The Secretary shall conduct a study of the potential for additional changes in the composition of light grade petroleum and heavy grade petroleum in the Strategic Petroleum Reserve. The Secretary shall submit to Congress a report, containing the results of the study and any recommendations with regard to the need for additional changes in the composition of the petroleum in the Reserve, not later than 18 months after the date of enactment of this Act. (c)

Dollar cost averaging

To decrease the cost and improve the efficiency of filling the Strategic Petroleum Reserve, the Secretary shall, to the maximum extent possible, purchase, exchange, or otherwise acquire crude oil for the Reserve on a dollar cost averaging basis. For purposes of this subsection, dollar cost averaging means an acquisition goal for each fiscal year of a constant monthly dollar value of petroleum. (d)

Deferrals

The Secretary may, when economically beneficial and practical, grant requests to defer scheduled deliveries of petroleum to the Reserve if it will receive a premium for the deferral paid in additional barrels of oil which will reduce the cost of oil acquisition and increase the volume of oil delivered to the Reserve.

6.

Energy Independence and Security Fund

(a)

Establishment

There is hereby established in the Treasury of the United States the Energy Independence and Security Fund (in this section referred to as the Fund). (b)

Administration

The Secretary shall be responsible for administering the Fund for the purpose of carrying out this section. (c)

Deposits

The Secretary shall transfer the balance of funds in the SPR Petroleum Account on the date of enactment of this Act in excess of $10,000,000 into the Fund. (d)

Distribution of Funds

The Secretary shall make available for obligation, without further appropriation and without fiscal year limitation, the following amounts from the Fund: (1)

Advanced research projects agency—Energy

The Secretary shall transfer $100,000,000 to the account Energy Transformation Acceleration Fund, established under section 5012(m) of the America COMPETES Act (42 U.S.C. 16538(m), to remain available until expended. Of the funds so transferred, the Secretary shall further allocate the amounts made available for obligation as follows: (A)$50,000,000 shall be available for university-based research projects. (B)$10,000,000 shall be available for program direction expenses. (2)

Wind energy research and development

The Secretary shall transfer $15,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for a program to support the development of next-generation wind turbines, including turbines capable of operating in areas with low wind speeds, as authorized in section 931(a)(2)(B) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)). (3)

Solar energy research and development

The Secretary shall transfer $30,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of solar energy technologies, and public education and outreach materials pursuant to such program, as authorized by section 931(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(A)). (4)

Low income weatherization

The Secretary shall transfer $100,000,000 to the account Weatherization Assistance Program, to remain available until expended, for necessary expenses for a program to weatherize low income housing, as authorized by section 411 of the Energy Independence and Security Act of 2007 (Public Law 110–140). (5)

Marine and hydrokinetic renewable electric energy

The Secretary shall transfer $30,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of ocean and wave energy, including hydrokinetic renewable energy, as authorized by section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) and section 636 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17215). (6)

Advanced vehicles research, development, and demonstration

The Secretary shall transfer $40,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for research, development, and demonstration on advanced, cost-effective technologies to improve the energy efficiency and environmental performance of vehicles, as authorized in section 911(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(A)). (7)

Industrial energy efficiency research and development

The Secretary shall transfer $110,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration, and deployment of new technologies to improve the energy efficiency and reduce greenhouse gas emissions from industrial processes, as authorized in section 911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16191(a)(2)(C)) and in section 452 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17111). (8)

Building and lighting energy efficiency research and development

The Secretary shall transfer $70,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for a program to accelerate the research, development, demonstration and deployment of new technologies to improve the energy efficiency of and reduce greenhouse gas emissions from buildings, as authorized in section 321(g) of the Energy Independence and Security Act of 2007 (42 U.S.C. 6295 note), section 422 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17082), and section 912 of the Energy Policy Act of 2005 (42 U.S.C. 16192). (9)

Geothermal energy development

The Secretary shall transfer $30,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for geothermal research and development activities to be managed by the National Renewable Energy Laboratory, as authorized by sections 613, 614, 615, and 616 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17192–95) and section 931(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)). (10)

Smart grid technology research, development, and demonstration

The Secretary shall transfer $30,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for research, development, and demonstration of smart grid technologies, as authorized by section 1304 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17384). (11)

Carbon capture and storage

The Secretary shall transfer $385,000,000 to the account Fossil Energy Research and Development, to remain available until expended, for necessary expenses for a program of demonstration projects of carbon capture and storage, and for a research program to address public health, safety, and environmental impacts, as authorized by section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 and 707 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17251, 17255). Notwithstanding any other provision of law, one of the demonstration projects shall be a component of the FutureGen project. (12)

Nonconventional domestic natural gas production and environmental research

(A)The Secretary shall transfer $50,000,000 to the account authorized by section 999H(e) of the Energy Policy Act of 2005 (42 U.S.C. 16378(e)), to remain available until expended. (B)The Secretary shall transfer $15,000,000 to the account Fossil Energy Research and Development, to remain available until expended, for necessary expenses for a program of basin-oriented assessments and public and private partnerships involving States and industry to foster the development of regional advanced technological, regulatory, and economic development strategies for the efficient and environmentally sustainable recovery and market delivery of natural gas and domestic petroleum resources within the United States, and for support for the Stripper Well Consortium. (13)

Hydrogen research and development

The Secretary shall transfer $5,000,000 to the account Energy Efficiency and Renewable Energy, to remain available until expended, for necessary expenses for the Department of Energy’s H-Prize Program, as authorized by section 1008(f) of the Energy Policy Act of 2005 (42 U.S.C. 16396(f)). (14)

Energy storage for transportation and electric power

(A)The Secretary shall transfer $30,000,000 to the account “Basic Energy Sciences”, to remain available until expended, for necessary expenses for a program to accelerate basic research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution, as authorized by section 641(p)(1) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(1)). (B)The Secretary shall transfer $70,000,000 to the account “Energy Efficiency and Renewable Energy”, to remain available until expended, including— (i)$30,000,000 for a program to accelerate applied research on energy storage systems to support electric drive vehicles, stationary applications, and electricity transmission and distribution as authorized by section 641(p)(2) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(2)); (ii)$20,000,000 for energy storage systems demonstrations as authorized by section 641(p)(4) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(4)); and (iii)$20,000,000 for vehicle energy storage systems demonstrations as authorized by section 641(p)(5) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17231(p)(5)). (e)

Transfer Procedures

The Secretary shall make an initial transfer from the Fund no later than 30 days after the initial deposit of monies into the Fund. The Secretary shall make additional transfers no later than 30 days after subsequent deposits. If the amount available to be transferred is less than the levels authorized under subsection (d), the transfers for each program shall be allocated on a pro rata basis. If the amount available to be transferred exceeds the levels authorized under subsection (d), the transfers for each program shall be increased on a pro rata basis. (f)

Management and Oversight

(1)

Additionality of fiscal year 2008 transfers

All amounts transferred under subsection (d) shall be in addition to, and shall not be substituted for, any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2008. (2)

Excess funds

The total of all amounts transferred under subsection (d) and any funds appropriated for the same or similar purposes in the Consolidated Appropriations Act, 2008 may not exceed the amounts authorized in other Acts for such purposes. In the event that amounts made available under this Act plus amounts under the Consolidated Appropriations Act, 2008 exceed the cumulative amounts authorized in other Acts for any program funded by this Act, the excess amounts shall be distributed to the other programs funded by this Act on a pro rata basis. (3)

Program plans and performance measures

The Secretary shall prepare and publish in the Federal Register a plan for the proposed use of all funds authorized in subsection (d). The plan also shall identify how the use of these funds will be additive to, and not displace, annual appropriations. The plans also shall identify performance measures to assess the additional benefits that may be realized from the application of the additional funding provided under this section. The initial plan shall be published in the Federal Register not later than 90 days after the date of enactment of this Act. (4)

Congressional oversight and review

Nothing in this section shall limit or restrict the review and oversight of program plans by the appropriate committees of Congress. Nothing in this section shall limit or restrict the authority of Congress to set alternative spending limitations in annual appropriations Acts. (5)

Apportionment

All transactions of the Fund shall be exempt from apportionment under the provisions of subchapter II of chapter 15 of title 31, United States Code.