Fulfilling U.S. Energy Leadership Act
Overview
The Fulfilling U.S. Energy Leadership Act (S. 1220) - also known as the FUEL Act - is a blueprint for a national energy policy intended to lessen America's dependence on foreign oil, reduce gas prices, and strengthen the national economy. Some aspects of the FUEL Act include:
Boosting Highly Fuel Efficient Vehicles
The transportation sector accounts for nearly half of U.S. oil consumption, so reducing the use of gas and diesel as transportation fuels by increasing gas mileage and switching to electric vehicles and other fuel sources is the best way to reduce our dependence on foreign oil. The FUEL Act:
- Requires a national plan for broad deployment of electric vehicles and authorizes $2 billion to selected communities across the country to install infrastructure and incentives to deploy 400,000 electric vehicles.
- Requires 80 percent of all vehicles purchased for the federal fleet by 2013 to run on natural gas, biofuels, or other alternative fuels, rising to 100 percent by 2020.
- Provides a tax credit for the purchase of highly efficient vehicles, starting at $500 and rising to $2,500 for vehicles that achieve more than 50 miles per gallon.
Expanding Oil and Gas Development
The Gulf of Mexico remains one of the world's most important places for deepwater oil and gas development. The FUEL Act:
- Directs the U.S. Department of Interior to offer leases for oil and gas exploration in the eastern Gulf of Mexico and, if requested by the governor and state legislature, in the mid- and southern Atlantic areas. The areas must be at least 50 miles beyond the coastline. Proposal also provides for expanded revenue sharing with participating states.
- Establishes a new offshore safety office within the Interior Department.
Alternative Fuel Deployment
Biofuels - fuels derived from biomass - are a key player in the alternative fuels market and are increasingly seen as sustainable alternatives to fossil fuels. The FUEL Act:
- Extends a modified ethanol tax credit (VEETC) through 2014
- Extends and expands a tax credit for alternative vehicle refueling stations.
- Extends through 2016 the $1.00 per gallon production tax credit for biodiesel and the $1.00 per gallon production tax credit for diesel fuel created from biomass.
- Extends through 2016 the $0.50 per gallon tax credit for the use of natural gas, propane, and other alternative fuels.
- Authorizes $6 billion for research and commercial application of advanced biofuels and bioenergy power systems.
Support for Advanced Battery Technology
One of the biggest challenges with the development of electric vehicles has been limited battery life. The FUEL Act:
- Authorizes $130 million for the Secretary of Energy to establish a "Next Step Energy Storage Research Center" to focus on research, development, and deployment of advanced battery technologies and other novel vehicle- and utility-scale energy storage technologies.
Development of Clean Coal Technology
With one quarter of the world's coal reserves within the United States, the FUEL Act boosts development of clean coal technologies in an effort to utilize this low cost energy. The FUEL Act:
- Creates a 30 percent investment tax credit for technology to capture and store carbon from coal-based energy facilities. The credit would be available to the first 20 newly constructed and 20 retrofitted projects.
- Provides $5 billion for clean coal bonds for use by rural electric cooperatives and public power systems.
- Requires the Secretary of Energy to create a "clean energy standard" that promotes the use of clean coal, renewable, and other low-carbon sources of electricity.
Supports Expansion of Nuclear Power
With soaring energy demand in the developing world, there has been a new focus on nuclear power. The FUEL Act:
- Provides $36 billion in additional authority under DOE's Innovative Technologies Loan Guarantee Program for nuclear power and other innovative energy sources.
- Establishes research programs to investigate small modular reactors and advanced nuclear fuels and fuel systems, and to develop a 15 year strategy to address the nation's spent nuclear fuel.
Energy Efficiency
In an effort to reduce energy consumption and promote efficiency, the FUEL ACT:
- Extends through 2016 the 10 percent tax credit for energy-efficiency improvements to existing homes.
- Authorizes $4.9 billion for the Rural Utilities Service to provide interest-free loans to rural electric cooperatives to provide low interest loans to qualified consumers to implement energy efficiency measures.
