The Subcommittee will meet for opening statements on the “The Energy Advancement and Conservation Act of 2001,” tomorrow (Tuesday, July 10, at 4:00 p.m.) in room 2123 of the Rayburn House Office Building.  On Wednesday, the Subcommittee will reconvene to begin debate on the far-reaching energy conservation package.

Included below is a summary of major provisions in the Energy Advancement and Conservation Act:

Title I - Nuclear Energy

· Moves the Nuclear Waste Fund off-budget

· Starts the 40-year operating clock for new nuclear reactors only when a plant actually begins to generate electricity

· Allows the Nuclear Regulatory Commission to collect licensing fees from federal facilities          

Title II - Hydroelectric Energy

· Allows for alternative conditions to be set during licensing process if environmental protections are maintained and when impact
on power generation and implementation costs can be lowered

· Requires the Federal Energy Regulatory Commission (FERC) to revise its data collection procedures for hydroelectric licensing

Title III - Clean Coal

· Authorizes the Department of Energy (DOE) to develop accelerated programs for the production and supply of electricity by advanced clean coal methods and equipment

· Allows DOE to fund projects meeting certain energy efficiency and environmental performance criteria up to a federal share of 50% project cost

· Provides tax credits for emission reductions and efficiency improvements in existing coal-based generating facilities

· Allows tax credits for early commercial application and production from advanced clean coal technology programs

· Creates refundable or offset tax credits for electric cooperatives and publicly-owned utilities

Title IV - Boutique Fuels

· Requires the Environmental Protection Agency (EPA) to ensure that any transition to summertime RFG (reformulated gasoline) does not disrupt the availability and affordability of gasoline; maximize flexibility for gasoline storage tanks

· Orders EPA and DOE to conduct a joint study of all federal, state and local fuel requirements

Title V – Conservation

· Reauthorizes successful, existing Federal energy conservation programs

· Establishes new mandatory efficiency requirements for federal buildings and encourages the use of unconventional and renewable energy resources to achieve these targets

· Requires that all air conditioning and heat pump units acquired by the Federal government after certain dates must meet efficiency standards equal to California’s current standards (which are higher than current Federal standards)

· Establishes a bank within the Federal government providing low-interest loans to Federal agencies to fund energy efficiency projects

· Creates new recommended state conservation goals -- 25% improved energy efficiency by 2010 over 1990 levels

· Extends authorization for the Energy Conservation Program for Schools and Hospitals and the Weatherization Assistance Program (WAP)

· Authorizes $3.4 billion in funds for fiscal years 2001 through 2005 for assisting low income consumers with payment of high energy bills, representing a 70 percent increase over total LIHEAP funding appropriated for the year 2000

· Directs the Secretary of Energy to recommend to the Federal Trade Commission (FTC) additional product labels to assist consumers in making purchasing decisions

· Requires the establishment of efficiency standards for televisions sets, furnace fans, ceiling fans, and cold drink vending machines

· Authorizes States to permit hybrid and alternative fueled vehicles to operate in high occupancy vehicle (HOV) lanes, regardless of passenger numbers