Comprehensive Energy and Environmental Reform S. 2012 Energy Policy Modernization Act of 2016 February 18, 2016 Produced by: Ben Booker Edited by: Katharine

Comprehensive Energy and Environmental ReformS. 2012 Energy Policy Modernization Act of 2016

February 18, 2016

Produced by: Ben BookerEdited by: Katharine Conlon

Director: Afzal Bari

Energy Bill Seeks to Strengthen the Electrical Grid, Expedite Permitting, Along With Other Measures

SENATE ENERGY BILLPRESENTATION CENTER

February 18, 2016 | Ben Booker

Source: U.S. Congress, “S.2012 Energy Policy Modernization Act of 2015,” Congress.gov, September 9, 2015.

Major Areas of Reform in S.2012

Expedite the permitting process for energy projects including oil, gas, and hydropower

Reauthorizing major programs like ARPA-E, the Quadrennial Energy Review, and the Land and Water Conservation Fund

Research and fund carbon capture and conversions projects for fossil fuels

Modernize and improve the electrical grid’s reliability, efficiency, cybersecurity, and storage capacity

2

The Bill Aims to Modernize and Improve the Electrical Grid’s Efficiency and Storage Capacity



Transmission Infrastructure

Faster permitting for transmission improvements

Funding research programs to discover improved storage technology and techniquesElectrical

Storage Science

3

How Reforms Improve Electricity Sector


Cybersecurity and Reliability Reforms Provide Support for Electrical Grid’s Safety and Integrity


February 18, 2016 | Ben Booker 4

Cybersecurity and Reliability Reforms


Cybersecurity Research and Protections •Energy Secretary is given greater authority to respond to cybersecurity threats•Funds cybersecurity research programs

Electric Grid

Reliability Reports •Regional reliability organizations send reports to FERC•Reports indicate the reliability of the bulk power systems and grid

Energy Projects Change Details

Liquefied Natural Gas

Faster approval for LNG export and transportation projects

• DOE would approve LNG export projects within 45 days or less

• Federal Energy Regulatory Commission (FERC) would approve LNG transportation projects within 90 days

Oil and Gas

Creating an Oil and Gas drilling pilot program

• Agencies would use a pilot program to determine ways to expedite oil and gas drilling permitting

Hydropower

Giving FERC greater permitting authority

• Would the address backlog of hydropower projects

• FERC would be required to establish a schedule to better coordinate the permitting process

The Bill’s Authors Want to Expedite the Permitting Process for Energy Projects




Permitting Process Reforms

5

Fossil Fuel Research and Commercial Programs Would Include Carbon Capture and Reduction




Federal Fossil Fuel Programs Changed Goals

New Additional Goal

Improve the conversion, use and storage of carbon dioxide

Previous Goals Increasing energy efficiencyDecreasing the cost of all fossil energy production, generation, and deliveryEnergy supply diversityDecreasing foreign energy dependenceEnergy securityDecreasing environmental impact of energy activitiesIncrease exports of equipment, technology, and services

6

Money For New Coal Technology Programs Would Fund R&D, Demonstrations, and Pilot Programs



Source: U.S. Congress, “S.2012 Energy Policy Modernization Act of 2015,” Congress.gov, September 9, 2015..

Coal Technology Program Funding in Millions of Dollars■ R&D ■ Demonstrations ■ Pilot Project Programs

7

$275 $275 $275 $275 $200

$50 $50 $50 $50

$75

$285 $285 $285 $285 $285

$610 $610 $610 $610 $560

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Goals of New Program1.Reliable power2.Conversion efficiencies3.Carbon capture and storage4.Reduction of emissions5.Water discharge management



Notes: ARPA-E – Advanced Research Projects Agency-EnergySource: U.S. Congress, “S.2012 Energy Policy Modernization Act of 2015,” Congress.gov, September 9, 2015.

$325 $325 $325

$375 $375

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

8

The Bill Would Reauthorize and Increase Funding for ARPA-E

Authorized Funding for ARPA-E, in Millions of Dollars

Reauthorization of Quadrennial Energy Review Would Involve More Participants Through POTUS Task Force




Overview of the Quadrennial Energy Review’s (QER) Goals and Participants

QER Goals QER ParticipantsSet national energy objectives considering economic, environmental and security priorities

• Department of Energy• Department of Commerce• Department of Defense• Department of State • Department of the Interior • Department of Agriculture • Department of the Treasury • Department of Transportation • Department of Homeland

Security • Office of Management and

Budget• National Science Foundation • Environmental Protection

Agency• Any federal agencies the

President decides should be part of the review

Recommend coordinated actions across Federal agencies Assess and recommend priorities for research, development, and demonstration Provide a strong analytical base for Federal energy policy decisions

Consider budgetary concerns when making recommendations

9

Would Permanently Reauthorize Land and Water Conservation (LWC) Fund, With New Spending Mandates




Land and Water Conservation Fund Requirements

■ Title 54 Federal Purchases ■ State, Forest, Species, and Battlefields ■ Unallocated ■ Recreational Preservation

Designated 40%•Assistance to states in preserving land through land grants and other program•Forest Legacy Program•Cooperative species endangered species grants•American Battlefield Protection Program

Recreation Funding•1.5% or $10 million (whichever is larger) must be used to help preserve public access to federal land for recreational purposes•This includes hunting and fishing

10

Would Create New Requirements for Considering Federal Land Purchases Through LWC Fund




New Factors Secretaries of Agriculture and Interior Would Consider for Federal Land Purchases

Factors to ConsiderManagement efficiencies

Management cost savings

Geographic distribution

Significance of the acquisition

Urgency of the acquisitionThreats to the integrity of the land potentially being purchased

Recreational value of the land

11

Modernize and Improve the Electrical Grid’s Reliability, Efficiency and Storage Capacity




Section Topic DetailsSec. 2001 Cybersecurity

for Electrical Grid

• Designates DOE as Sector-Specific Agency for cybersecurity for the energy sector

• Directs the Secretary to carry out a cybersecurity-related research, development, and demonstration program

• Department would perform pilot demonstration projects for new technologies; and develop workforce curricula for energy sector-related cybersecurity.

Sec. 2301 Research Electric Grid Storage

• DOE would develop research, development and storage and demonstration programs for electric grid storage

• Aims to improve electric grid storage by discovering innovative techniques and technologies

Sec. 2302-Sec. 2304

Electric Systems Improvement and Modeling

• Energy would develop models that assess resource and technology combinations to see if grid improves

• Creates grant program to improve the resiliency of the electrical grid• Department would develop metrics to assess models on grid improvement

Sec. 2309 Expedite Electronic Transmission Infrastructure Permitting

• Creates Interagency Rapid Response Team for Transmission to improve the efficiency of electric transmitting infrastructure permitting

• Secretary would appoint a Transmission Ombudsmen to resolve delays in electric transmitting infrastructure

Sec. 4301 Electric Reliability Reports

• Regional reliability entities would submit reports to Congress and FERC within six months after enactment and three years thereafter

• Report would describe the state of and prospects for a region’s electric reliability

• Regional reliability entities would submit statements on federal rules that may significantly impact bulk power system 12

Electric Grid Reform

Expedite the Permitting Process for Energy Projects Including Oil, Gas and Hydropower




Section Topic DetailsSec. 2201 Liquid and

Natural Gas Exports

• Speed applications to export natural gas• DOE must approve within 45 days an application to export natural gas after the

FERC or Maritime Administration has reviewed it.• This is only applicable to countries without a FTA with the United States

Sec. 3103 Liquid Natural Gas Transportation

• FERC must authorize within 90 days all natural gas transportation projects after the application is deemed complete.

• FERC must set up interagency schedule and refer all interagency disputes to CEQ

Sec. 3104 Oil and Gas Drilling Pilot Program

• Establish a pilot program in one State to test ways in which the permitting of oil and gas drilling can be expedited.

• Conditions: State must have 2,000 oil and gas drilling units in which the (1) the federal government owns or trusts 25% or less of the minerals and (2) the federal government does not own or trust any of the land

Sec. 3001 Hydropower Projects

• Address hydropower project backlogs • FERC is the lead agency in addressing backlogs• Set planning schedule and coordinate federal authorizations for hydropower

projectsSec. 2201 Liquid and

Natural Gas Exports

• Speed applications to export natural gas• DOE must approve within 45 days an application to export natural gas after the

FERC or Maritime Administration has reviewed it.• This is only applicable to countries without a FTA with the United States

13


Research and Fund Carbon Capture and Conversions Projects for Fossil Fuels




Section Topic DetailsSec. 3401 Fossil Energy • DOE research, development, demonstration and commercial programs would

include the goal of improving the conversion, use, and storage of carbon dioxide produced from fossil fuels

Sec. 3402 Establishment of coal technology programs

• Repeals existing coal programs under EPACT of 2005• Replaces with new coal technology program• The major focus of coal technology program would be on

1. reliable power2. conversion efficiencies3. carbon capture and storage4. reduction of emissions5. water discharge management

14


Research and Fund Carbon Capture and Conversions Projects for Fossil Fuels




Section Topic DetailsSec. 4201 ARPA-E • ARPA-E is reauthorized.

• Oversight to ensure there is no duplication between ARPA-E research and other DOE programs

Sec. 4402 Quadrennial Energy Review

• Tasked the President with establishing a Task Force to construct the Quadrennial Energy Review

• Cross-Department input to establish the national priorities of energy development

Sec. 4503-4504

Working Energy Group

• Working Group on Energy Markets composed of high-level agency officials chaired by the Secretary of Energy.

• Investigates the effects of financial investment on energy commodities • Issues recommendations to the President and Congress if necessary• Conducts a study about the pricing of crude oil and refined products • Provides recommendations related to transparency and excessive speculation

Sec.5001-5002

Land and Water Conservation Fund

• National Park Service Critical Maintenance and Revitalization Conservation Fund to address high-priority deferred maintenance needs of the National Park Service with a prohibition on the use of funds for land acquisition.

• Permanently reauthorizes the Land and Water Conservation Fund (LWCF)• The LWCF has new criteria to consider when making decisions about how it will

use federal landSec. 5003 Historical

Preservation Fund

• Permanently reauthorizes the Historical Preservation Fund

15


Documents

Comprehensive Energy and Environmental Reform S. 2012 Energy Policy Modernization Act of 2016 February 18, 2016 Produced by: Ben Booker Edited by: Katharine