{"id":116,"date":"2010-05-17T10:45:01","date_gmt":"2010-05-17T15:45:01","guid":{"rendered":"http:\/\/blogs.law.columbia.edu\/climatechange\/?p=116"},"modified":"2013-07-19T12:31:55","modified_gmt":"2013-07-19T17:31:55","slug":"comparing-the-renewable-energy-provisions-including-nuclear-clean-coal-and-off-shore-oil-and-gas-in-kerry-lieberman-and-waxman-markey","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2010\/05\/17\/comparing-the-renewable-energy-provisions-including-nuclear-clean-coal-and-off-shore-oil-and-gas-in-kerry-lieberman-and-waxman-markey\/","title":{"rendered":"Comparing the Renewable Energy Provisions, Including Nuclear, Clean Coal, and Off-Shore Oil and Gas, in Kerry-Lieberman and Waxman-Markey"},"content":{"rendered":"

by Marne Sussman<\/em><\/p>\n

This blog post discusses the renewable energy provisions in the Kerry-Lieberman bill (KL), including provisions for nuclear energy, clean coal technologies, and off-shore oil and gas, and compares them to similar provisions in the Waxman-Markey bill (WM). Title I starting on page 14 of the KL discussion draft is titled \u201cDomestic Clean Energy Development\u201d. This encompasses Subtitle D \u201cRenewable Energy and Energy Efficiency\u201d starting on page 187, Subtitle A \u201cNuclear Power\u201d starting on page 14, Subtitle C \u201cCoal\u201d starting on page 76, and Subtitle B \u201cOff-Shore Oil and Gas\u201d starting on page 60.<\/p>\n

Title I of WM is entitled \u201cClean Energy\u201d and starts on page 12 of the bill. It covers similar topics including Subtitle A \u201cCombined Efficiency and Renewable Electricity Standard\u201d on page 12, Subtitle I \u201cNuclear and Advanced Technologies\u201d on page 265, and Subtitle B \u201cCarbon Capture and Sequestration\u201d on page 56.<\/p>\n

Kerry-Lieberman Renewable Energy and Energy Efficiency<\/span><\/p>\n

The renewable energy section of KL states that the Administrator shall distribute allowances allocated pursuant to \u00a7 781(c)(5)(C) of the Clean Air Act (CAA) to Indian tribes and States to carry out renewable energy and energy efficiency programs. The allowances are to be used for: energy efficiency purposes, including programs for energy efficient buildings and manufactured homes, building energy performance labeling, low income community improvements, and retrofits of existing buildings; renewable energy purposes, including deployment of technologies to generate electricity from renewable sources and deployment of equipment such as solar panels to generate electricity on buildings in an urban environment; cost effective energy efficiency programs for consumers of electricity, natural gas, home heating oil, or propane; enabling the development of a Smart Grid; and providing the non-Federal share of support for surface transportation capital projects. (\u00a71603)<\/p>\n

The bill also states that it is the policy of the U.S. to support the continued growth of voluntary renewable energy markets and that nothing in the act is intended to interfere or prevent the continued operation and growth of such markets. (\u00a71604)<\/p>\n

Compared to Waxman-Markey Combined Efficiency and Renewable Electricity Standard<\/span><\/p>\n

In comparison to KL\u2019s mere support of renewable energy and voluntary markets, WM sets a stringent federal standard for the use of renewable energy. Title I, Subtitle A, \u00a7 101 requires retail electric suppliers \u2013 utilities that sell more than 4 million MWh of electricity \u2013 to meet 6% of their load with electricity from renewable resources and electricity savings by 2012 and 20% by 2020. Up to one-quarter of the requirement may be met with electricity savings. Upon petition of any state Governor, the Federal Energy Regulatory Commission can increase that proportion up to two-fifths.<\/p>\n

Retail electric suppliers must submit Federal renewable electricity credits and electricity savings each year equal. One renewable electricity credit is given for each MWh of electricity produced from a renewable resource. Certain projects, such as small wind and rooftop solar, are eligible for three credits for each MWh produced. In lieu of credits and energy savings, suppliers may submit a payment of $25 per MWh. States with preexisting renewable electricity standards that rely on state procurement of credits can assume responsibility for meeting the federal standards on behalf of retail suppliers.<\/p>\n

WM also establishes a renewable electricity standard for federal agencies requiring 6% from renewable and other qualifying resources by 2012 and 20% by 2020. (\u00a7 103)<\/p>\n

Kerry-Lieberman Nuclear Power<\/span><\/p>\n

KL\u2019s nuclear provisions focus on establishing expedited construction and operating licenses for new nuclear reactors and developing technology neutral guidelines for plant licensing to allow for new technology to more easily enter the marketplace. (\u00a7 1101) The provisions require the Secretary to designate a National Laboratory as a spent fuel recycling research and development center (\u00a7 1104) and to research how to lower the cost of nuclear reactor systems (\u00a7 1107).<\/p>\n

KL also has multiple tax provisions relating to nuclear power including an investment tax credit for facility construction (\u00a7 1122), the inclusion of nuclear power facilities in the advanced energy project credit (\u00a7 1123), and grants to reimburse 10% of the facility expenditures for placing in service a qualified nuclear power facility (\u00a7 1126).<\/p>\n

Compared to Waxman-Markey Nuclear and Advanced Technologies<\/span><\/p>\n

In comparison to KL, Title I, Subtitle I, \u00a7\u00a7 181-191 of WM focuses less on government participation and research in the nuclear field and more on raising money to promote clean energy technologies in the private sector. WM establishes the Clean Energy Deployment Administration (CEDA) as an independent corporation owned by the U.S. government to promote the development and deployment of clean energy technologies. CEDA would partner with and support private capital markets to promote access to affordable financing for clean energy technologies that otherwise would be unable to secure financing. The initial capitalization of CEDA would occur through green bonds.<\/p>\n

Kerry-Lieberman Coal<\/span><\/p>\n

KL requires a report establishing a strategy to address legal, regulatory, and other barriers to the commercial-scale deployment of carbon capture and storage (CCS). (\u00a7 1401) It establishes a task force to study geological storage sites for CO2 and requires a study of environmental laws that would apply to CO2 injection and geological storage. (\u00a7 1402)<\/p>\n

KL also creates a special funding program for the development and deployment of CCS if at least 30 states approve. (\u00a7 1412) The program would support projects to accelerate the commercial availability of CCS technologies (\u00a7 1414) and would be funded by an assessment on all fossil fuel-based electricity sold to consumers. (\u00a7 1415)<\/p>\n

The bill also allows for the distribution of emission allowances to support the commercial deployment of CCS technologies. To receive an allowance, a project must implement CCS technology at a qualifying electric generating unit or industrial source that will achieve emission limitations of at least 50% of CO2 produced, geologically sequester CO2 at a site that meets permitting requirements or convert CO2 to a stable form that will permanently sequester it, meet all other permitting requirements, and be located in the U.S. (\u00a7 1431)<\/p>\n

Finally, KL amends the CAA to add new performance standards for coal-fired power plants. (\u00a7 1441)<\/p>\n

Compared to Waxman-Markey Carbon Capture and Sequestration<\/span><\/p>\n

The coal regulations in WM closely mirror those in KL. Title I, Subtitle B requires the Administrator to complete the same report on barriers to CCS as in KL (\u00a7 111) and conduct the same study on sequestration sites and the effect of environmental laws on sequestration (\u00a7 113). WM goes further than KL and requires a coordinated approach to certification and permitting of sites for geological sequestration and the promulgation of regulations to minimize the risk of escape of CO2 injected for sequestration. (\u00a7 112)<\/p>\n

Like KL, WM creates a funding program in corporate form to demonstrate and deploy CCS technologies but it is created by an affirmative vote of two-thirds of fossil-based electricity utilities, not the vote of states. The corporation may collect assessments on utilities for all fossil-fuel based electricity delivered to consumers with funds used to support large-scale demonstration of CCS technologies to accelerate commercial availability. (\u00a7 114)<\/p>\n

WM also establishes an incentive program to distribute allowances to support the commercial deployment of CCS technologies (\u00a7 115) and amends the CAA to establish performance standards for new coal-fired power plants. (\u00a7 116)<\/p>\n

Kerry-Lieberman Offshore Oil and Gas<\/span><\/p>\n

KL suggests that Congress consider: a moratorium on new drilling until the cause of the recent explosion is determined, mechanisms that ensure adequate funds for accidents, new safety measures, new investments in preparedness, education, and training, studies to assess the effects of spill procedures, the ability of States to veto drilling, revenue sharing with States, and investment of revenues to protect oceans and coastal areas. (\u00a7 1201) Further sections delineate revenue sharing with States for outer continental shelf areas (\u00a7 1202) and Alaska (\u00a7 1203), give States the right to prohibiting leasing within 75 miles of the coastline (\u00a7 1204), and require impact studies for certain drilling areas (\u00a7 1205).<\/p>\n

Compared to Waxman-Markey<\/span><\/p>\n

WM does not mention offshore oil and gas.<\/p>\n

<\/div>","protected":false},"excerpt":{"rendered":"

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