Energy Policy Act of 2005
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The Energy Policy Act of 2005 was passed by the 109th United States Congress in July 2005 and signed into law by President George W. Bush in August 2005. Upon its passage, according to the Congressional Research Service, the act marked the first comprehensive national energy legislation in more than 10 years. The act established renewable fuel standards, mandating a two-fold increase in the country's use of biofuels, and provided energy-related tax incentives totaling $14.5 billion.[1]
Background
According to the Congressional Research Service, the Energy Policy Act of 2005 was "spurred by rising energy prices and growing dependence on foreign oil" and "shaped by competing concerns about energy security, environmental quality, and economic growth." At the time of the bill's enactment, crude oil prices had recently hit an all-time high of $63 per barrel and the price of gasoline had risen to $2.339 per gallon. In 2005, the U.S. imported 58 percent of its oil. The U.S. Energy Information Administration predicted at the time that the nation would be importing 68 percent of its oil by 2025.[1][2]
Legislative history
See bill: Energy Policy Act of 2005
The act was introduced in the United States House of Representatives by Rep. Joe Barton (R-Texas) as H.R. 6 on April 18, 2005. The bill passed the House on April 21, 2005, by a vote of 249-183. The United States Senate passed its version of the bill on June 28, 2005, by a vote of 85-12. A joint conference committee was convened to reconcile differences between the two bills. The conference committee submitted its report on July 27, 2005. On July 28, 2005, the House voted to accept the conference committee report by a vote of 275-156. On July 29, 2005, the Senate voted to accept the conference committee report by a vote of 74-26.[3]
Energy Policy Act of 2005 |
| United States Congress |
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| Introduced: April 18, 2005 |
| House vote: 249-183; April 21, 2005 |
| Senate vote: 85-12; June 28, 2005 |
| Conference: July 27, 2005 |
| Conference vote (House): 275-156; July 28, 2005 |
| Conference vote (Senate): 74-26; July 29, 2005 |
| President: George W. Bush |
| Signed: August 8, 2005 |
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On August 8, 2005, President George W. Bush (R) signed the bill into law.[2]
Components
Tax incentives
The Energy Policy Act of 2005 established energy-related tax incentives totaling roughly $14.5 billion over the course of 11 years. According to the Congressional Research Service, the incentives were geared to "encourage domestic energy production and energy efficiency." Of that, the following amounts were allotted for specific areas:[1]
- Approximately $1.3 billion in tax incentives for energy efficiency and conservation
- Approximately $4.5 billion in incentives for renewable energy
- $2.6 billion in incentives for oil and gas production and transmission
- Almost $3.0 billion for coal production
- Over $3.0 billion in incentives for electricity generation and transmission
Renewable fuel standards
The Energy Policy Act of 2005 mandated that gasoline sold in the U.S. contain greater amounts of renewable fuel (e.g., ethanol or biodiesel). The act established that in 2006, the nation's gasoline had to contain at least four billion gallons of renewable fuels. This amount increased by 700 million gallons per year through 2012, at which point 7.5 billion gallons of renewable fuels were required. In 2004, gasoline sold in the U.S. contained 3.4 billion gallons of renewable fuels.[1]
The Energy Independence and Security Act of 2007 further raised these standards.[4]
Energy production
The act established provisions to increase oil and natural gas production on federally owned land. According to the Congressional Research Service, the act included measures to "increase access to federal lands by energy projects -- such as drilling activities, electric transmission lines, and gas pipelines.[1]
Budget impact
According to an analysis by the Congressional Budget Office, the Energy Policy Act of 2005 was projected to increase direct spending by $2.2 billion from 2006 to 2010 and by $1.6 billion from 2006 to 2015. Between 2005 and 2010, the act was projected to reduce revenues by $7.9 billion and by $12.3 billion from 2006 to 2015. The table below details budget impacts by fiscal year.[5]
| Budget impacts by fiscal year ($ in millions) | ||
|---|---|---|
| Year | Estimated spending | Estimated revenues |
| 2005 | $0 | $40 |
| 2006 | $231 | -$588 |
| 2007 | $615 | -$1,827 |
| 2008 | $606 | -$2,069 |
| 2009 | $490 | -$1,645 |
| 2010 | $298 | -$1,787 |
| 2011 | -$44 | -$1,321 |
| 2012 | -$106 | -$840 |
| 2013 | -$154 | -$686 |
| 2014 | -$166 | -$611 |
| 2015 | -$160 | -$971 |
| TOTAL | $1,610 | -$12,305 |
| Source: Congressional Budget Office, "Estimated Impact of the Conference Agreement for H.R. 6 on Direct Spending and Revenues," July 27, 2005 | ||
Support
On April 5, 2005, in a statement made at the time the act was introduced in the House, Rep. Joe Barton (R-Texas) said, "The Energy Policy Act of 2005 will do what we need done right now. We need secure, reliable energy here at the start of the 21st century, and this legislation will do the job. It is the product of ideas from all sides, of years of work by both Republicans and Democrats, and of practical and political compromise. It is not perfect, but it is a solid product." Barton also defended the legislation's focus on fossil fuels. "While we explore technology, it would be a grave error to turn away from the energy sources we have now. In the face of increasing global demand, we will need traditional sources of energy." At the signing ceremony, Bush said, "I'm confident that one day Americans will look back on this bill as a vital step toward a more secure and more prosperous nation that is less dependent on foreign sources of energy."[2][6]
Criticism
Some opponents of the act argued that it did not do enough to foster the development of renewable energies or offer consumer relief, instead providing financial incentives to existing energy interests (in particular, the oil and natural gas industries). Martha Marks, the president of the National Republicans for Environmental Protection, said, "It really gives a short shrift to conservation and it still continues to subsidize the well-established oil and gas industries that really don't need subsidizing especially when (crude) oil is $60 a barrel." Representative Nancy Pelosi (D-California) said, "This energy policy is yet another example of Republicans catering to corporate special interests at the expense of the public interest."[2][7][8]
See also
External links
- Energy Policy Act of 2005
- Congressional Research Service, "Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions," March 8, 2006
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 Congressional Research Service, "Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions," March 8, 2006
- ↑ 2.0 2.1 2.2 2.3 The Washington Post, "Bush Signs Energy Bill, Cheers Steps Toward Self-Sufficiency," August 9, 2005
- ↑ The Library of Congress, "Bill Summary and Status - 109th Congress (2005-2006) - H.R. 6 - All Congressional Actions," accessed August 6, 2014
- ↑ Congressional Research Service, "Energy Independence and Security Act of 2007: A Summary of Major Provisions," December 21, 2007
- ↑ Congressional Budget Office, "Estimated Impact of the Conference Agreement for H.R. 6 on Direct Spending and Revenues," July 27, 2005
- ↑ Project Vote Smart, "Barton Gives Opening Statement On Energy Policy Act of 2005," April 5, 2005
- ↑ CBS News, "Bush Signs Sweeping Energy Bill," August 8, 2005
- ↑ Fox News, "Bush Signs Massive Energy Reform Bill," August 9, 2005
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