A portal website bringing together vital information about natural gas and natural gas vehicles.
Federal Historic NGV Legislation
Energy Policy Act of 2005
On Monday, August 8, 2005, President Bush signed into law the Energy Policy Act of 2005. This legislation, which was the first comprehensive national energy plan for the United States in 13 years, had several provisions that affect natural gas and oil development in offshore areas. The following points are highlights of these provisions and should not be considered comprehensive of the entire law.
The Act requires the MMS to conduct a comprehensive inventory and analysis of the estimated natural gas and oil resources on the OCS. The inventory includes moratoria areas which are currently closed to natural gas and oil leasing. The Act stipulates that MMS must use any available technology except drilling to conduct the inventory including 3-D seismic surveys and an initial report to Congress will be submitted within 6 months. Since the timeframe for this report is limited, the law authorizes MMS to acquire existing seismic data from industry sources.
A new coastal impact assistance program will provide $250 million from OCS revenues per year for fiscal years 2007 to 2010 to six energy-producing coastal States: Alabama, Alaska, California, Louisiana, Mississippi, and Texas. The 16 Energy Information Administration, Office of Oil and Gas, September 2005 allocation to each State will be based on the ratio of OCS revenue generated off a State's coast to the total OCS revenue in Federal waters. Under this formula, Louisiana is predicted to receive about 54 percent of the assistance money. The money received by the States will be used for coastal restoration, conservation, and other uses.
The Act contains a clarification of the Federal Energy and Regulatory Commission's (FERC) exclusive jurisdiction under the Natural Gas Act2 for siting, construction, expansion, and operation of any facility that imports or exports liquefied natural gas (LNG). FERC, however, must consult with affected States' governments regarding safety issues.
A provision in the Act establishes a deadline for decisions on appeals of the consistency determination under the Coastal Zone Management Act3. If a State appeals the consistency decision made by the Secretary of Commerce, the Energy Policy Act of 2005 requires the Secretary to close the administrative record for the appeal within 160 days. An extension up to 60 days may be granted under certain conditions. The Act also establishes a 60-day deadline for the Secretary to determine the outcome of the appeal.
Several provisions in the Act provide increased incentives for natural gas and oil development in offshore areas in order to maintain or stimulate production. The incentives include royalty relief for natural gas production from deep wells in shallow waters of the Gulf of Mexico and for natural gas and oil production in deep waters of the Gulf of Mexico. The Secretary of the Interior has discretion in granting the relief based on the market price of the resource.
One provision in the new legislation expands the Outer Continental Shelf Lands Act to include the Planning Areas offshore Alaska for royalty suspension at the Secretary of the Interior's discretion.
The Energy Policy Act of 2005 grants authority to MMS to manage and oversee alternative-energy related projects on the OCS. Prior to this provision, there was a gap in the law with respect to alternative-energy projects. This provision provides 27 percent sharing of any revenue generated from these types of projects in distances up to 3 miles seaward of State waters.
Enacted in to Law December 19, 2007 The Energy Independence and Security Act (EISA) of 2007 (Public Law 110-140PDF) aims to improve vehicle fuel economy and reduce U.S. dependence on petroleum. EISA includes provisions to increase the supply of renewable alternative fuel sources by setting a mandatory Renewable Fuel Standard, which requires transportation fuel sold in the United States to contain a minimum of 36 billion gallons of renewable fuels annually by 2022. In addition, the law sets the Corporate Average Fuel Economy (CAFE) standard at 35 miles per gallon for passenger cars and light trucks by the year 2020.
EISA also includes grant programs to encourage the development of cellulosic biofuels, plug-in hybrid electric vehicles, and other emerging electric vehicle technologies. The law is projected to reduce greenhouse gas emissions by 9% by 2030.
The Responsible Federal Oil and Gas Lease Act (2008), also called the "Use It or Lose It" bill (HR 6251 IH), proposed prohibiting the Secretary of the Interior from issuing new federal oil and gas leases to holders of existing leases who do not either diligently develop the lands subject to such existing leases or relinquish such leases.
This bill failed to pass in the House of Representatives.
Energy Improvement and Extension Act of 2008
Enacted in to Law October 3, 2008 The Energy Improvement and Extension Act of 2008 is Division B of the Emergency Economic Stabilization Act (Public Law 110-343PDF). Title II of Division B of the law includes several provisions related to tax credits and exemptions for alternative fuels and fuel-efficient technologies.
Enacted in to Law February 17, 2009 The American Recovery and Reinvestment Act (ARRA) of 2009 (Public Law 111-5PDF) appropriates nearly $800 billion towards the creation of jobs, economic growth, tax relief, improvements in education and healthcare, infrastructure modernization, and investments in energy independence and renewable energy technologies. ARRA supports a variety of alternative fuel and advanced vehicle technologies through grant programs, tax credits, research and development, fleet funding, and other measures. For a summary of the provisions related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation topics, see the ARRA summary table.
Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010
Enacted in to Law December 17, 2011 Tax Relief, Unemployment Insurance Re authorization, and Job Creation Act of 2010 (Public Law 111-312PDF) extends and reinstates several alternative fuel tax credits. The law extends until December 31, 2011 the qualified alternative fuel vehicle fueling property tax credit, the volumetric ethanol excise tax credit (VEETC), and the ethanol and biodiesel producer tax credits. It also reinstates, effective January 1, 2011 through December 31, 2011, the alternative fuel and alternative fuel mixture excise tax credits, as well as the biodiesel mixture excise tax credit.