Skip Past Menu [Vegas Image] [House Seal]
[Home]-placeholder-[Contact Info]-placeholder-[Services]-placeholder-[Legislation]-placeholder-[District]-placeholder-[Biography]-placeholder-[Press Center]-placeholder-[Site Map]
[Search the site][E-mail Page to a Friend]
 

New Berkley Legislation
Seeks to Spur U.S. Energy Independence

FREE Act Targets Expansion of Renewable Energy, Offers Conservation Incentives   

(Las Vegas-- August 14, 2006) On a tour of one of the Valley’s most energy efficient buildings, Congresswoman Shelley Berkley (D-NV) today called for action on the FREE Act, new legislation she has introduced which seeks to promote American energy independence, while eliminating subsidies for more nuclear power and tax breaks for oil and gas producers at a time of record profits.

“Promoting the greater use and development of renewable power resources and alternative fuels will increase America’s energy independence.  Nevada families want a cleaner environment and freedom from soaring energy prices, but our nation is locked into policies that hurt consumers and threaten our national security,” said Berkley.

The Berkley bill, H.R. 5926, eliminates billions of dollars in costly taxpayer subsidies to oil and gas producers and the nuclear energy industry and channels those federal resources into renewable energy development and production.  Berkley discussed her bill on during a tour of architecture firm Tate Snyder Kimsey’s Las Vegas headquarters. The firm’s building is the first in Nevada to be awarded “Leadership in Energy and Environmental Design” certification by the U.S. Green Energy Council.   

“The FREE Act cuts wasteful tax breaks to oil and gas producers and nuclear operators and invests those dollars in clean, renewable resources that will promote energy independence.  Funding new nuclear power plants will only increase pressure to dump nuclear waste in Nevada.  My goal is to eliminate the need for more nuclear energy by increasing the amount of power we generate using sun, wind, geothermal and other renewable sources.  A strong national renewable portfolio standard, like the RPS we already have in Nevada, will spur more alternative energy production and fuel the market for new technologies that can cut pollution and reduce our reliance on fossil fuels,” said Berkley.

Americans want more fuel efficient cars and trucks and increasing gas mileage standards will force automakers to give drivers more choices that will save them money at the pump and help fight global warming.

“Increasing gas mileage standards in America’s cars and trucks will mean more choices for drivers who want to save at the pump and cut global warming emissions at the same time,” said Berkley.  “Each gallon of gas that a Las Vegas driver saves is money that stays in his or her pocket and it has the added benefit of reducing pollution and conserving oil.  Higher gas mileage standards are long overdue and it is time we put America’s families ahead of car company profits,” Berkley said.    

A summary of provisions included in the FREE or Freedom through Renewable Energy Expansion act is provided below.

Summary of the FREE Act
Freedom through Renewable Energy Expansion

Repeal nuclear subsidies:  Repeals three provisions in the Energy Policy Act of 2005 regarding the nuclear industry, saving about $3.5 billion: 

  • Repeals the authorization of $1.25 billion for the Department of Energy to build a nuclear reactor to generate both electricity and hydrogen.
  • Repeals the authorization for cost-overrun support of up to $2 billion total for up to six new nuclear power plants.
  • Repeals the extension of the Production Tax Credit (PTC) to Advanced Nuclear Facilities.

Repeal oil and gas tax breaks:  Repeals the following provisions in the Energy Policy Act of 2005 regarding the oil and gas industry, saving about $2.6 billion:

  • Repeals the election to expense certain refineries, a tax break to refineries that allows them to expense 50 percent of the cost of upgrading an existing refinery or building a new one.
  • Repeals the treatment of natural gas lines as 15-year properties, which allows the cost of natural gas distribution lines to be recovered over 15 years instead of 20 years, as it was before passage of the Energy Policy Act.
  • Repeals the treatment of natural gas gathering lines as 7-year properties, which allows the cost of natural gas gathering lines to be recovered over 7 years instead of 15, as it was before passage of the Energy Policy Act. 
  • Repeals the rule change in the Energy Policy Act that re-defined independent producers as oil and gas producers that produce 75,000 barrels a day or less, as opposed to the 50,000 per day definition that was used prior to the Act’s passage.  Independent producers are eligible for certain tax breaks that larger oil and gas producers cannot receive.  This provision decreases the number of oil and gas producers eligible for tax breaks.   

Repeal other oil and gas subsidies:  Repeals the following provisions in the Energy Policy Act of 2005 regarding the oil and gas industry, saving about $6.8 billion:  

  • Repeals royalty relief to oil companies for producing in marginal wells. 
  • Repeals royalty relief to gas companies for drilling in deep wells in the shallow waters of the Gulf of Mexico.
  • Repeals royalty relief for deep water production.
  • Repeals the authorization for an inventory and analysis of oil and natural gas resources beneath all of the waters of the Outer Continental Shelf (OCS). 
  • Repeals the authorization to expedite oil and gas leases and permit applications for land drilling. 
  • Repeals the authorization for a research and development program intended to advance oil and gas production.     
  • Repeals the authorization for a research and development program on production capacity of marginal wells.
  • Repeals the authorization for a research and development program into ultra-deepwater and unconventional natural gas exploration and development. 
  • Repeals the suspension of royalty payments for certain drilling off the shore of Alaska. 
  • Repeals the provision suspension royalty payments for certain drilling in the National Petroleum Reserve in Alaska.          

Suspend royalty relief:  Repeals provisions in federal law that exempt oil and gas companies from paying royalties or reduced fees for drilling on public lands, saving $5.8 billion.    

Raise average fuel economy standards to 33 mpg by 2015:  Directs the Secretary of Transportation to prescribe corporate average fuel economy (CAFE) standards for passenger automobiles manufactured after 2008 that ensure that the CAFE achieved by automobiles manufactured after 2015 is at least 33 miles per gallon. 

Extend renewable electricity Production Tax Credit (PTC) for five years:  Extends for five years (until January 1, 2012) the renewable electricity production tax credit (PTC) for the following facilities: wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation power, landfill gas, and trash combustion.

Extend and modify the Investment Tax Credit (ITC) for solar, fuel cell and geothermal properties:  Extends the current 2-year, 30 percent investment tax credit (ITC) for solar equipment until January 1, 2016, reverting back to 10 percent after 10 years.  Extends the ITC for eligible fuel cell properties until December 31, 2015.  Extends the ITC for geothermal properties until January 1, 2016, and increases the credit from 10 percent to 30 percent to match the solar credit, reverting back to 10 percent after 10 years. 

Extend the Investment Tax Credit (ITC) for residential energy efficient properties:  Extends until December 31, 2007, the current 2-year, 30 percent investment tax credit (ITC) for residential solar and fuel cell equipment that was enacted in the Energy Policy Act of 2005. 

Create a small wind Investment Tax Credit (ITC):  Creates a 10-year, 30 percent investment tax credit that covers small wind systems used to power homes, farms and small businesses that generate 100 kilowatts of energy or less.  The credit would revert to 10 percent in 2016. 

Fund geothermal research:  Provides $32.5 million to the Secretary of Energy to fund geothermal research. 

Create a 20 percent Federal Renewable Portfolio Standard:  Each electric utility that sells electricity to electric consumers shall obtain a percentage of the base amount of electricity it sells to electric consumers in any calendar year from new renewable energy or existing renewable energy. The percentage obtained in a calendar year shall not be less than 5 percent by 2007, 8 percent by 2009, 11 percent by 2011, 15 percent by 2013, and 20 percent by 2015 and thereafter.  This provision will also establish a renewable energy credit trading program to permit an electric utility that does not meet the standard to do so by purchasing renewable energy credits. 

Strengthen the federal energy purchase requirement:  Amend the Energy Policy Act of 2005 to require the federal government to consume during any fiscal year no less than 5 percent of its energy from renewable energy sources by 2007, 11 percent by 2011, and no less than 20 percent by 2015. 

Create a school renewable energy grant program:  Direct the Secretary of Energy to establish a program to make grants to local schools and school districts to promote and facilitate the use of renewable energy sources in school facilities. 

# # #

 

 

439 Cannon HOB
Washington, DC 20515
Phone - (202) 225-5965
Fax - (202) 225-3119
2340 Paseo Del Prado, Suite D-106
Las Vegas, NV 89102
Phone - (702) 220-9823
Fax - (702) 220-9841
[-----FOOTER-----]