	Introduction

In the first session of the 110 th Congress, the House and the Senate passed two markedly different versions of omnibus energy efficiency and renewable energy legislation. The key provisions of the Senate-passed H.R. 6 are appliance efficiency standards, an increase of the renewable fuel standard (RFS) to 36 billion gallons by 2022, and an increase of the combined corporate average fuel economy (CAFE) standards to 35 miles per gallon (mpg) by 2020. The RPS amendment proposed setting a target of 15% by 2020. The proposed tax package amendment included oil and natural gas revenue offset provisions, as well as incentives for renewable energy and energy efficiency. A second challenge involves additional action that will be required to get a bill to conference committee. Because the House and Senate have passed different measures, constitutionally-required congressional procedures prevent the two bills ( H.R. Other concerns included the proposed repeal of the manufacturing tax deduction for the oil and gas industry, the application of royalty requirements for certain offshore oil and gas leases issued in 1998 and 1999, increased authorization for clean renewable energy bonds, and expansion of the Davis-Bacon prevailing wage requirements. Comparing the House and Senate Bills

This report compares the major provisions of the House-passed version of H.R. 3221 were adopted, including one that would establish a renewable energy portfolio standard (RPS). 3221: Summary and Discussion of Oil and Gas Provisions .) Certain energy efficiency measures for walk-in coolers and walk-in freezers would be set by legislation. The standard would start at 2.75% in 2010 and then rise annually until reaching a peak of 15% in 2020. 2776)
Title XI—Production Incentives
This Title would extend the renewable electricity production tax credit (PTC) for four years, expand the PTC to include ocean thermal and hydrokinetic (wave, tide, and current) energy, extend the 30% business energy tax credit for solar and fuel cell equipment for eight years, authorize $2 billion of clean renewable energy bonds, and remove the cap on the tax credit for residential solar and fuel cell equipment. The modified standard would start at 8.5 billion gallons in 2008 and rise to 36 billion gallons in 2022. Subtitle B on Revenue Raising Provisions included several tax modifications that aimed to reduce certain subsidies for oil and natural gas development.
In the first session of the 110th Congress, the House and the Senate passed two markedly different versions of omnibus energy efficiency and renewable energy legislation. This report compares major provisions in House-passed H.R. 3221 and Senate-passed H.R. 6. Key legislative challenges remain. First, there are significant differences between the two bills. Second, because the House and Senate have passed different measures, further action will be required in at least one chamber before a conference committee could be arranged. Third, concerns about certain oil and natural gas provisions, and the lack of measures to support increased oil and gas production, have led the Administration to threaten to veto each bill. Highlights of major provisions include:
Renewable Fuels Standard (RFS). The Senate bill would set a modified standard that starts at 8.5 billion gallons in 2008 and rises to 36 billion gallons by 2022. The House bill has no RFS provision. Corporate Average Fuel Economy (CAFE). The Senate bill would set a target of 35 miles per gallon for the combined fleet of cars and light trucks by model year 2020. The House bill has no CAFE provision. Renewable Energy Portfolio Standard (RPS). The House bill would set a minimum standard that would start at 2.75% in 2010 and rise steadily to a peak of 15% in 2020. The Senate bill has no RPS provision. Offshore Oil and Gas Royalties. The House bill would establish royalties, or alternative payments, for certain federal leases established in 1998 and 1999. The Senate bill has no provision. Repeal of Oil and Gas Tax Incentives. The House bill would obtain tax revenue offsets by reducing subsidies for oil and natural gas production. The Senate bill has no provision. Renewable Energy Electricity Production Tax Credit (PTC). The House bill would extend the PTC for four years, and expand it to include some additional resources. The Senate bill has no provision. Other Tax Incentives. The House bill would extend several investment tax credits covering solar energy and energy efficiency in residential and commercial sectors. The Senate bill has no provision. Energy Efficiency Equipment Standards. Key differences involve standards for residential refrigerators, freezers, refrigerator-freezers, metal halide lamps, and commercial walk-in coolers and freezers. Loan Guarantees. The House bill would give new loan authority to a wider variety of projects. The Senate bill would prevent appropriations acts from limiting the use of non-appropriated funds.