	Introduction

Continuing a legislative effort that began in the 107th Congress, House and Senate confereeson November 17, 2003, reached agreement on an omnibus energy bill ( H.R. OnNovember 18, the House approved the conference report by a vote of 246-180, but on November 21,a cloture motion to limit debate in the Senate failed, 57-40. On February 12, 2004, SenatorDomenici introduced a revised version of the bill ( S. 2095 ) with a lower estimated costand without a controversial provision on the fuel additive MTBE. Both bills would provide $18 billion in loan guarantees for construction of a natural gaspipeline from Alaska to Alberta, where it would connect to the existing Midwestern pipeline system. Provisions are also included to increase access by energy projects to federal lands. Several new statutory efficiency standards would be established for consumer andcommercial products and appliances, and other standards could be set by the Department of Energy(DOE). For motor vehicles, funding would be authorized for the National Highway Traffic SafetyAdministration (NHTSA) to set Corporate Average Fuel Economy (CAFE) levels as provided incurrent law. 6 conferenceagreement and notes the changes included in S. 2095 . For adiscussion of the tax provisions in the bills, see CRS Issue Brief IB10054, Energy Tax Policy . Major Non-Tax Provisions

Electricity Regulation. In part, the electricity section of the conference report and S. 2095 would repealthe Public Utility Holding Company Act (PUHCA) and establish mandatory reliability standards.Standard market design (SMD), a proposed system to provide uniform market procedures forwholesale electric power transactions, would be remanded to the Federal Energy RegulatoryCommission (FERC); no rule would be allowed before the end of FY2006. The ban has two possible exceptions. For certain other products and appliances, DOE would beempowered to set new standards. To encourage production on federal lands, royalty reductions would be provided for marginaloil and gas wells on public lands and the outer continental shelf. Alaska Gas Pipeline. Energy on Federal Lands. Current Law. This provision was not included in the House and Senate bills. Funding for DOE energy efficiency programs would beauthorized for five fiscal years. The conference report would require the useof 3.1 billion gallons of renewable fuel in 2005, increasing to 5.0 billion gallons in 2012.
House and Senate conferees approved an omnibus energy bill ( H.R. 6 , H.Rept.108-375 ) on November 17, 2003, and the House approved the measure the following day (246-180).However, on November 21, 2003, a cloture motion to limit Senate debate on the conference reportfailed (57-40). On February 12, 2004, Senator Domenici introduced a revised version of the bill( S. 2095 ) with a lower estimated cost and without a controversial provision on the fueladditive MTBE. Major non-tax provisions in the conference measure and S. 2095 include:
Ethanol. An increase in ethanol production to 3.1 billion gallons annually by 2005 and 5billion gallons by 2012 would be mandated. However, states could petition for a waiver if themandate would have severe economic or environmental repercussions, other than loss of revenueto the highway trust fund.
MTBE. Methyl tertiary butyl ether (MTBE), a gasoline additive widely used to meet CleanAir Act requirements, has caused water contamination. The conference bill would ban the use ofMTBE by 2015 with some possible exceptions, provide funds for MTBE cleanup, and provideprotection for fuel producers and blenders of renewable fuels and MTBE from defective productlawsuits. The liability protection was not included in S. 2095 .
Electricity. In part, the electricity section would repeal the Public Utility Holding CompanyAct (PUHCA) and establish mandatory standards for interstate transmission. Standard market design(SMD) would be remanded to the Federal Energy Regulatory Commission (FERC); no rule wouldbe allowed before the end of FY2006.
Alaska Gas Pipeline. The bill would provide $18 billion in loan guarantees for constructionof a natural gas pipeline from Alaska to Alberta, where it would connect to the existing midwesternpipeline system.
Energy Efficiency Standards. New statutory efficiency standards would be established forseveral consumer and commercial products and appliances. For certain other products andappliances, DOE would be empowered to set new standards. For motor vehicles, funding would beauthorized for the National Highway Traffic Safety Administration (NHTSA) to set CorporateAverage Fuel Economy (CAFE) levels as provided in current law.
Energy Production on Federal Lands. Royalty reductions would be provided for marginaloil and gas wells on federal lands and the outer continental shelf. Provisions are also included toincrease access by energy projects to federal lands.
For a discussion of the tax provisions in the bills, see CRS Issue Brief IB10054, Energy TaxPolicy . This report will not be updated.