Transcript Energy Policy Act of 2005 - February 22, 2006

Energy Policy Act of 2005
Frank Prager
Xcel Energy Inc.
February 22, 2006
Energy Policy Act of 2005
First comprehensive energy bill since 1992
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Eight years in the making
1700+ pages, 18 titles
Signed into law August 8th
$14 billion in tax incentives
$64 billion in authorizations
The Act – 18 Titles
I
Energy Efficiency
II Renewable Energy
III Oil and Gas
IV Coal
V Indian Energy
VI Nuclear Matters
VII Vehicles and Fuels
VIII Hydrogen
IX Research and
Development
X
Department of Energy
Management
XI
Personnel and Training
XII Electricity
XIII Energy Policy Tax Incentives
XIV Miscellaneous
XV
Ethanol and Motor Fuels
XVI Climate Change
XVII Incentives for Innovative
Technologies
XVIII Studies
Clean coal provisions
• Clean Coal Power Initiative
– $200 million per year
• Clean Air Coal Program
– $500 million over two phases
• Loan guarantees
• Tax credits
• Goal: Support for new technologies,
especially IGCC
What is IGCC?
•IGCC stands for “Integrated Gasification Combined
Cycle”
 Coal converted into synthesis gas or “syngas” in
pressurized gasifier
 Syngas cleaned to remove environmental contaminants
before being burned in combustion turbine to generate
electricity
 Waste heat recovered to produce steam and generate
additional electricity in a secondary steam turbine (the
“Combined Cycle” part of the plant)
IGCC Process
Waste Heat
Boiler
Coal
Gasifier
CO2
Turbine
Sequestration
Enhanced Oil Recovery
Western IGCC demonstration
project
• Sen. Salazar: Section 413
– IGCC demonstration project
– Using western coal
– At altitude (above 4000 ft)
• No appropriation
• Colorado House Bill 06-1281
Transmission provisions
• Transmission Incentives.
– Incentive based rates to attract new investment
• Advanced Transmission Technology.
• Transmission Siting.
– DOE to identity constrained corridors
– Streamlines the process for FERC to issue
permits
– Eminent domain authority
Tax provisions
• Nuclear Decommissioning.
– Deductions extended for decommissioning funds
• Pollution Control.
– Seven year accelerated depreciation
• Transmission.
– Fifteen year accelerated depreciation
• Wind and Biomass Production Tax Credit.
– Expire at the end of 2007
– Solar investment tax credit
Other provisions
• LNG incentives
• Incentives for advanced metering
• Reliability Standards.
– Creates Electric Reliability Organizations
subject to FERC oversight
• PUCHA Repeal.
– New FERC merger authority
• Non-Regulated Utilities.
– Opens access to transmission facilities
• Customer Protections.
What was left out?
• Climate change
– Senate resolution
– Bingaman/Domenici effort
• Renewable portfolio standard
• Nuclear waste disposal
What’s next?
• Coal Based Electric Generation
– More investment, especially in low-emitting generation
and transmission.
• Natural Gas
– LNG.
• Alternative Energy
– More wind, solar, biomass in short term
– More transmission investment
• Nuclear
• More rulemaking
• More legislation