HOUSE AND SENATE MEMBERS AGREE ON FINAL VERSION OF ENERGY LEGISLATION

Washington, Jul 26, 2005 - "After four years of effort in developing a national energy plan, I am pleased to have been a conferee in working out this final version," said Rep. Cliff Stearns (R-Ocala). Early this morning the House and Senate members participating in the conference agreed to a final version of energy legislation to be considered in each respective body of Congress. "Our nation needs a balanced, comprehensive energy plan that meets America's growing demand for energy while protecting our environment," added Stearns. "This bill does just that by providing incentives for renewable energy production, clean coal technology, low-income energy assistance, providing for certainty and reliable operation of our energy markets, and increasing domestic production."

H.R. 6 represents the most sweeping energy legislation in decades. Specifically the bill:

* Addresses rising gasoline prices and our dependency on foreign oil. Encourages more domestic production of oil with incentives such as a streamlined permit process; promote a greater refining capacity to bring more oil to market; and increases the gasoline supply by stopping the proliferation of expensive regional boutique fuels. To scale back demand for oil, the proposal encourages vehicles powered by hydrogen fuel cells and increases funding for Department of Transportation work to improve fuel-efficiency standards.

* Improves our nation's electricity transmission capacity and reliability to stop future blackouts through the adoption of reliability standards, incentives for transmission grid improvements and reform of transmission authorization rules.

* Promotes clean and renewable fuels, by providing incentives for clean coal technology and renewable energies such as biomass, wind, solar and hydroelectricity.

* Requires greater energy conservation by establishing new mandatory efficiency requirements for federal buildings, and efficiency standards and product labeling for battery chargers, commercial refrigerators, freezers, unit heaters and other household products.

* Extends Daylight Saving Time by four weeks to reduce energy consumption by the equivalent of 100,000 barrels of oil for each day of the extension. Studies indicate that the proposal to adopt daylight savings time from the second Sunday in March to the first Sunday in November will also lower crime and traffic fatalities and allow for more recreation time and increased economic activity.

* Deters unfair foreign competition from undermining U.S. energy security. The bill delays the government's Committee on Foreign Investments in the United States (CFIUS) from reviewing sensitive international energy mergers, such as the active bid for Unocal by the Chinese National Overseas Oil Company - an entity 70 percent owned by the communist Chinese government - for 120 days to allow for a review by the Departments of Defense, Energy and Homeland Security. The assessment would examine the proposed deal's impact on U.S. energy security and whether or not an American company would be allowed to make such an acquisition in the foreign company's host country. CFIUS would also be required to wait three weeks after completion of the study before it can make recommendations to the president the international merger at issue.

* Boosts production of clean natural gas to help alleviate soaring prices for the environmentally friendly fuel. Specifically, the bill breaks the bureaucratic logjam that has stymied work on approximately 40 liquefied natural gas facilities nationwide.

* Encourages more nuclear and hydropower production by authorizing the Department of Energy to develop accelerated programs for the production and supply of electricity; setting the stage for the lengthy process of building new nuclear reactors by offering risk insurance incentives and extending Price-Anderson indemnification; and improving current procedures for hydroelectric project licensing.