CONGRESSIONAL RESEARCH SERVICE LIBRARY OF ‘CONGRESS E N 3 B RA RY Washington iJnivez‘si";y ér .1. 7' """' NOV 161989 ‘ ".«S': 1 ‘x '« "S. i3’”xv. r. ‘A - ‘.>x- ‘ “.‘«'JJ T ,«v:.~, ' ~._ :1 2".‘ ,/4;; S O K‘¥’§'V 0 .$‘%"DI?i" . . ';.:_";L;‘_.,T"_,_: j_-5:-1-_§-_;&.'.‘1 :5‘-_ '3: »,.-:>‘A‘r"'.:=» --1 , 4‘: '1?‘1-'‘ .. F " -,2 r“ .- . 1 "1. » ' V3" “~ "'A 7, E -. >1“-;h~ ,> _ _r v V - ' _‘ ‘ _ I I ;V- ; A 1-‘ \\‘iT , . . _ ‘ . ‘ .. . V3 3, .1! — *~ > ‘ ' ' -F V J,’ ‘ . ' ‘ L . , ' .: «J ' ' ‘ ‘ | . , ~ '1 3‘ ‘ .' . ‘ _ 1,, ' ' ‘1 IlllllfiflflmflfllflflfltflfiflfliflWEN!HI! SYNTHETIC FUELS CORPORATION AND TECHNOLOGY HIHI BRIEF NUMBER u3792u5 AUTHOR: Rothberg, Paul Science Policy Research Division Segal, Migdon L Science Policy Research Division THE LIBRARY OF CONGRESS CONGRESSIONAL RESEARCH SERVICE MAJOR ISSUES SYSTEM DATE ORIGINATED DATE UPDATED FOR ADDITIONAL INFORHATION CALL 287-5700 030a IO H0 CRS- 1 HB792Q5 UPDATE-O2/25/80 £§§Q§-2§§lEZ2LQ§ The current energy supply situation has stimulated renewed interest in the commercialization of the Hation's synthetic fuels (synfuels) resources, which include oil shale, coal, and biomass. The Congress is considering a‘ variety of measures to promote the rapid development of these energy resources. Important factors that seem to deserve consideration in the formulation of a "National Synthetic Fuels Policy" include: the huge capital costs of synfuels plants, balance of trade considerations, associated environmental impacts of various processing systems, benefits to the national security of increasing domestic energy supply, economic incentives to promote investment, regulatory policies influencing large-scale commercial operations, long lead times necessary to construct and operate synfuels production facilities, and the relationship between the public and private sectors in the commercialization of synfuels projects. The House and Senate have —passed legislation creating the Energy nobilization Board, a new Federal agency that would be designed to expedite the Federal and State regulatory process affecting specific energy projects, including some synfuels plants. The House has passed legislation (H.R. 3930) that would~provide financial incentives to encourage synfuels production. The Senate has passed 5. 932, which would create an independent, federally c’ ttered institution called the Synthetic Fuels Corporation to foster the commercial production of synthetic fuels. This Corporation is discussed in detail in the last section of this Issue Brief. m , EAQKQEQUND Synthetic fuels, in the broadest sense, include oil, gas, and other fuels extracted from coal, oil shale, biomass, peat, tar sands, and solid wastes. By applying different combinations of heat, pressure, air, oxygen, or water, or by using such biological reactions as fermentation por hydrolysis, a variety of fuels and feedstocks can be produced from these resources. Depending upon the specific chemical characteristics of -each product, synthetic fuels can be used as boiler, transportation, or aviation fuels; as a replacement for natural gas; or as input fuels for electrical generators. Associated with the commercialization of synthetic fuels (synfuels) is a variety of economic, environmental, and regulatory concerns and uncertainties. For example, the capital and production costs of synfuels plants processing coal, oil shale, and tar sands will be large; hence, these technologies may yield fuels that are morepexpensive than conventional fuels. Although low-sulfur, low-nitrogen, and low-ash fuels could be produced, many processing systems would release an array of effluents that would have to be carefully monitored and controlled. In order to construct and operate large 57 fuels plants, numerous Federal, State, and local regulatory permits must be obtained; environmental standards concerning air, water, and land impacts must be met; and in some cases, economic regulatory decisions must be issued. The Carter Administration has recently proposed creation of an "Energy Hobilization Board" (EHB) designed toy expedite the regulatory process influencing the commercialization of newt energy projects. The House and Senate are now in conference to determine the final form and powers of the EBB. , cns- 2 mB792us UPDATE-O2/25/80 wof the many synfuels technologies, gasohol and "energy from solid wast 1" systems are likely to make the largest contributions to U.S. energy, supply in the near-term (before 1984). Because of long lead times and regulatory and environmental uncertainties, the commercialization of a coal- and oil shale—based synfuels industry is expected to be gradual, even with major y federal financial support.n Brief summaries of the four major synthetic fuelstechnfilogies are given below. 0 ‘ D eQil-§hele.2ezel222e2t The western U.S. oil shales located in Colorado, Utah, and Wyoming contain the equivalent of more than 731 billion barrels of oil tr roughly equal to the known world reserves of conventional oil. Nearly 80% of the shale oil contained in the high grade resources are located on public lands leased and managed by the Secretary of the Interior.l The Department of the Interior has thus far leased four 5,000 acre-tractst of Federal shale, deposits, to the private sector -- two in Utah and two in Colorado. The companies iinvolved have currently suspended their efforts to develop the Utah tracts pending the. outcome of nseverall lawsuits regarding ownership of the leased= tracts. Developers of the Colorado tracts have fallen behind ‘ the Interiors Departmentjs original production projections. ilssociated with the iexploitation of this energy resource are m..y unresolved matters, such as the role off the jFederal Government in its development; environmental regulations governing an oil shale processing industry; social and economic planning related to the influx of construction and plant workers and their families; future oil shale leasing policies of the Department of Interior; availability of price supports, loan guarantees, or contract provisions for shale oil entrepreneurs; and the establishment of a comprehensive national coil shale policy. As a result of these uncertainities coupled with technological and regulatory constraints, it is ‘projected that commercial shale oil production may reach 20,000 to 57,000 barrels per day by 1987. Even if the Federal Government offers major . economic incentives, mindustryl is still expected to proceed somewhat cautiously because of the huge capital costs and other uncertainties. Production levels from the private sector operating on private andm leased, lands are estimated roughly to be less than .20-.35 million barrels of oil equivalent per day by 1995. Depending on a variety of such factors as they availabilitym of production and investment tax credits, the price and availability of imported oil, as well as regulatory constraints, ‘it is possible, but not expected that, production could exceed this level. §ner3z-fr2m-§2lid_Ea§te§_a2d.Eiesenzerslenit Agricultural, industrial, and urban waste materials can be processed by various technologies into such usable energy products as oil, gas, steam, d electricity. Approximately 30 demonstration or commercial plants employing a ° variety of technologies will soon be processing solid wastes into fuels. Numerous problems and uncertainties are associated with the emergence of this industry._ major -constraints include: difficulties of some cities and corporations in raising capital for these projects; technological problems of. achieving a reliable and yeconomicv operation; and mistrust or lack of ‘cooperation among industry, Government, utilities, and other participants in CBS- 3 uB792u5 UPDATE—O2/25/80 these projects. over the next five years, a large number of new plants is scheduled to. open. Reliable and economic operation of these systems is likely to be crucial to the success of this industry. If successful, the "energy from solid wastes" industry could help: (1) to reduce the volume of solid wastes requiring disposal, (2) to recycle valuable materials, and (3) to contribute to the U.S. energy supply. ‘ Interest is also increasing in bioconversion x-- technologies in which energy trapped in biological materials or energy produced by biological reactions is captured and utilized. Several Federal agencies are supporting research, development, and demonstration projects on bioconversion, which is frequently classified as a form of solar energy. The Department of Energy (DOE) may spend more than $55 million in FY80 on its "Fuels from Biomass" program, which is designed Ito advance the innovation of a variety of biomass-fueled technologies, such as gas from marine kelp, silviculturei (or energy plantations) systems, wood utilization, and alcohol production. DOE has estimated that about 75,000-100,000 barrels of oil equivalent may be produced daily from biomass resources by 1990. §9al.§a§ifi2e2i2n.ané.Li2ue£e2ti-n The processing of coal into environmentally clean synfuels would supplement the nation's dwindling reserves of conventional oil and natural g; and help to reduce the Nation's dependence on imported fuels. Several gasification and liquefaction processes have been proved technically feasible, but would produce synfuels at prices significantly higher than conventional fuels. The Federal Government and industry are working on advanced or improved systems that may be ready to compete in the dmarketplace in some four to ten years.$ 9 9 The commercialization of a coal-based synfuels industry is expected to be a slow process.. In addition to the problem of economic feasibility, this emerging industry is constrained by the technical uncertainties» of advanced processes, a complicated and as yet unspecified system of Federal, State, and local regulatory permits and standards, and potentially severed environmental impacts. In addition, the Nation does not yet have a clearly defined and coordinated "National Synthetic Fuels Policy” that would encourage rapid commercialization. Under present economic‘ and policy conditions, significant coal-based synfuels production is not expected before 1990. Construction of the first 0.5. commercial coal liquefaction or high-Btu gasification plant has not yet begun. Even if substantial Federal incentives for commercialization were offered, production levels by 1990 from commercial-size plants are estimated to be less than .20 million barrels of oil equivalent per day and approximately 250 to 315 million cubic feet of pipeline quality gas per day.) Depending on a variety of such factors as the availability of production and it =stment tax credits, the availability and price of imported oil, as well has regulatory constraints, it is possible, but not expected that, production could exceed these levels. Al22h2l-§nel§ Ethanol (grain alcohol) and methanol (wood alcohol), two related compounds c:ns- U, uB792u5 UPDATE-02‘/25/80 vthat are chemically classified as ialcohols, have attracted increasing rattention as alternative automotive fuels. The use of either of thr e compounds in this manner is feasible, and ethanol, in a p10% blend wlbh gasoline, known as "gasohol," isa now available in hundreds of gasoline stations in the United States. In Brazil, the national goal of replacing 20%, of that nation's gasoline consumption with ethanol is said to ihave largely been achieved, and Brazil is now planning to operate much of its automotive fleet on pure alcohol. . X. Interest inthe alcohol fuels, already high because of the energy crisis, , has been further increased by the embargo on most U.S. grain shipments to the Soviet Union which was declared on Jan. 4, 1980, in response to the Soviet hinvasion of Afghanistan. The Carter Administration declared its intention to convert some of this grain into ethanol for use in ethanol-gasoline “gasohol” ‘mixtures. The current rate of production of ethanol for use in, gasohol is approximately 60 million gallons per year. The immediate goal of the Carter -Administration is to replace 10% of U.S. sales of< unleaded gasoline with gasohol. This would require over 400 million gallons of alcohol, to make over 4 billion gallons of gasohol. tguestions have been reaised as to whether the Nation has sufficient distilling capacity to accomplish this goal in the near future. 2 The term "gasohol" was first popularized by the state of Nebraska in itst ethanol research and was used to denote a blend of 10% ethanol with 90%i conventional gasoline. However, "gasohol" is now sometimes used as a generic term for alcohol fuels, including both methanol and ethanol.i 2 is C‘ 1AL-§:he22l. Ethanol for use as a fuel may be obtained from grain and other agricultural commodities. .The "gasohol" concept has therefore been acclaimed in the agricultural areas of the nation as a ypotential solution ‘for the problems of agricultural ysurpluses and of energy shortages. However, economic and supply considerations pose difficulties. with regard ~toi ~meconomics, DOB estimates that alcohol could be produced from grain to sell at around $1.00 per gallon. Since ethanol has about 2/3 the energy value per gallon that gasoline does, an energy comparison shows the price of ethanol to V be $13.20 per million Btu, compared with about $5.25 per1 million Btu ~forp gasoline ya a difference ofla factor of roughly 2.5 to, 1 against gasohol- The capital cost of construction would have to be considered here, since only 7% of ethanol produced today in this country comes from fermentation plants, with the remaining 93% now obtained from petrochemicals. with regard to supply, the amount of gasoline used by automobiles in ithe United States is roughly 110 billion, gallons per year. ~ Assuming a 10% ' alcohol mixture, 11 billion gallons of alcohol could be used. At‘ 2.55 gallons of alcohol per bushel of grain, fl-3 billion bushels of grain would be required for this amount. The total D.S. grain harvest is roughly ten billion bushels. Therefore, in order to provide a 10% contribution to the automotive fuel problem, the United States would have to use over uox of its grain harvest. Putting it another way, all of the grain harvest, if bur: 1 as fuel, would only fill about 25% of the U.S. automotive needs. Using available surplus land to produce alcohol fuel would only add about another 2% of. the national automotive fuel, requirement. Nevertheless, useful contributions to regional fuel supplies may well be possible. Another cost to be considered is the “net energy cost.i Opponents of gasohol claim that the energy required to produce it (growing the crops, cRs- 5 nin792as UPDATE-O2/25/80 operating the fermentation plants, etc.) is greater than the energy oh”ainable from the energy once produced. Gasohol advocates deny this claim, an- counter with data showing a positive energy balance. The energy balance question is a complex one, and appears to need further study. The Department of Energy now believes that a new ethanol conversion facility could have a "clearly positive (though small) net energy balance,“ since new facilities could be, built with vgreater energy efficiency than already existing facilities. . Gasohol blends containing 10% ethanol and 90% gasoline have gone on sale at hundreds of gasoline stations in the United States. The amount of alcohol fuel being produced nationally is on the order of 60 million gallons per year, which is 0.6% of the amount that would be necessary for a 10% gasohol blend nationwide. .(.3:).-.!.!.ef1.1..‘c;.I_1..q_l. Bethanol as a fuel may be produced from coal, wood, or urban wastes. with regard to coal, the technology for obtaining methanol is well known, and the nation's coal resources are ample to support obtaining significant quantities of methanol. The ten billion gallons of methanol that would be required for a 10% alcohol blend nationwide is about 60 billion pounds, or 30 million tons uof methanol. Obtaining this quantity of methanol would require some 38 million tons of coal per year, or 6% of our present coal output. This would involve expanding methanol production in this country by a factor of ten, w} :h would require a considerable effort in terms of plant construction. The Department of Energy estimates that methanol from coal could be produced at 30 to 60 cents per gallon. However, methanol has only half the energy value per gallon that gasoline does. Comparing the two fuels on a dollars-per—Btu basis shows that methanol would cost $5.25-$10.50 per million Btu, compared with $5.25 per million Btu for gasoline. The capital cost of construction of methanol plants would also be an important factor. DOE estimates that, to produce enough methanol to meet 8 to 9% of the gasoline demand, 20 coal conversion plants would have to be constructed, at a total cost of about $10 billion. with regard to wood, estimates are more speculative than for coal, since woodato-methanol conversion plants have not yet been built, and the amount of wood that can be produced per acre perv year is a controversial figure. Extrapolating from DOE estimates, it appears that in order to obtain ten billion gallons, roughly 21.? billion acres of forest would be required per year. This is about 4% of the total national forest acreage. For solid wastes, estimates are even more speculative than those for wood. Extrapolating from DOE estimates, in order to obtain ten billion gallons, iabout 180 million tons of municipal solid waste (MSW) would The required. This is slightly less than the projected national total of 200 million tons of nsw by 1985. l§.l-§.e.é.e.I-‘.§.3=..A.§.§§-.§E.eIi.<£e;-£.2-.Al§.9..119l-...E'.L1..~i3.I-.-..129.z§l..2!§.£1.3; The federal effort on the alcohol fuels includes a modest amount of funding for alcohol fuels research, as well as a number of programs which provide aid in terms of tax incentives, loan guarantees, and the like. As to direct Federal funding, the budget for FY81 includes an estimated $20.9 million for alcohol fuels research, as compared with $18.45 million CRS-1 6 nB792u5 UPDATE-02/2'5/'80‘ appropriated in FY80 and $17.1 million in FY79. of that total, $19.0 million is in the DOE budget and $5.9 million is_ in the Agriculture Departm ‘t budget. These figures are only estimates, since alcohol fuels funding is not a line item in the budget of either agency, and agency officials .find it difficult to separate funding categories such as "Fuels from biomass" into alcohol and non-alcohol components.) A In its "Alcohol Fuels Policy“ Review," DOE declares that ethanol fuel production would increase'from 60 million gallons per year at present ito approximately 300 million gallons per year by 1982. This is equivalent to 20,000 barrels per day.) Using the 10% gasohol blend, 3 billion gallons of gasohol would then be available. This would) be) roughly 3% of the total national gasoline consumption.) By 1985,] biomass alcohol fuel production could reach 500 to 600 million gallons per year, according to the same study. In January 1980, the Carter Administration declared its intention to replace‘ 10% of unleaded gasoline sales with gasohol by the end of 1981. In order to do this it would be necessary to have the national alcohol fuel production capacity increase 400 to 500 million gallons per year by that time, which would necessitate a much more rapid increase in production capacity than that 1 projected in the earlier estimates. Among the indirect programs of Federal assistance are: (1) the program for l construction of pilot plants under the Food and Agriculture Act of 1977, (2) ithe provisions in the National Energy Act which exempt alcohol fuels from the‘ four cents per gallon excise tax, (3) the inclusion of the alcohol fuels ‘in DOE's entitlements program, (H) a loan guarantee program for small plants,l announced by the President in May 1979, and (5)0 a loan guarantee prog: a under Public Law 95-238 for .alternative fuels in. general, not ‘yet in operation. 0 Two major bills containing provisions that would substantially increase the Federal role in assisting alcohol fuels development passed both Houses of Congress in 1979, and_were in conference committees in early 1980. i.The windfall profits tax bill (H.R. 3919), as it passed the Senate on Dec. 17, 1979, includes extensive provisions regarding alcohol fuels. These provisions include: (1) extension of the H cents per gallon Federal excise tax exemption for gasohol through the year 2000 (it would otherwise end in 1984); (2) a tax credit of 40 cents per gallon for alcohol fuels of above 190 proof (95% alcohol), and 30 cents per gallon for alcohol fuels between 150 and 190 proof (75% to 95% alcohol); (3) a tax credit of 20 cents per gallon ifor alcohol fuels produced from coal; (H) simplification of the BAT? regulations as they apply to alcohol fuels production; (5) a specification that a person purchasing gasoline for use in production of gasohol receive a refund of the Federal excise tax paid on the gasoline; (6) a requirement that the Treasury Department recommend imethods for. limiting the importing of foreign alcohol for fuel purposes; and (7) an increase in the investment tax credit for alcohol fuel production facilities by 10% for PY81#8n. None iof these provisions are contained in the. House version of this legislation, which now must be acted upon by a Senate-House conference committee.) l The synfuels hill (5. 932), as approved by the Senate Energy Committee, includes provisions which would authorize $650 million) in financial assistance, set annual goals for gasohol consumption of 60,000 barrels a idayv (equivalent to 920 million gallons per year) by 1982, and 10% of estimated gasoline consumption (10 billion gallons per year) by 1990, and establish an alcohol fuels office in the Department of Energy. The Senate passed 3.) 932 on Nov. 8, 1979, adding amendments which included the modified text of S. CRS- 7 HB792fl5 UPDATE—02/25/80 31775. The bill, as amended, includes an estimated $6.2 billion in ‘alcohol fuels funding, mostly for loan, price, and purchase guarantees over a 5-year p\,iod. Before it can become law, 3. 932 must be reconciled with the House version of this legislation, H.R. 3930, which contains no specific provisions for gasohol. S. 932 is authorizing legislation, and the actual funding to carry out its provisions would have to be provided in separate appropriations bills. 3 .(2)...§§..t2'..m§.te.s...e§-.F:11.1=.11.re..Al22l1.el..Z.t;el-§.-2:=.2si.11_s3.ien...§.eeesiiez In may 1979, DOE estimated that ethanol fuel production would increase from 60 million gallons per year at present to approximately 300 million gallons per year by 1982, with gasohol use thus reaching three billion gallons, or 3% of present gasoline consumption, by that year. In January 1980, the Carter Administration declared its goal to‘ achieve a production level of 400 to 500 million gallons of alcohol for fuel purposes by the end of 1981, with gasohol use thus approaching 5 billion gallons by that date. with regard to methanol, DOE has stated that ten coal conversion plants, each producing 6000 tons per day (1.9 million gallons) of methanol could be built by the year 1990. This would be 693.5 million gallons per year per plant, or 6.935 billion gallons per year total. DOE states that this would supply about 5% of the projected gasoline demand for that year. By the year 2000, another ten plants could be built, bringing the production capacity for methanol from coal to about 1n billion gallons per year at that time. Eethanol production plants must be large to be economically attractive. The difficulties involved in the siting and construction of such large plants will probably delay any significant use of methanol until beyond 1985, according to DOE. Additional, more detailed information of each of these synfuels technologies may be obtained from the following CRS issue briefs: IB 70060 -— Oil Shale Development: Outlook, Current Activities and Constraints IB 7uo6a -- Energy from solid Wastes and Bioconversion IB 7fl087g- Gasohol: The Alcohol Fuels IB 77105 -—-Coal Gasification and Liquefaction §1nihe::.e.§mel§-£er22reii9.u on June 30, 1979, the Senate passed 3. 932, the "Energy, Security Act.” Title I of this bill sets up an independent, federally chartered institution called they Synthetic Fuels Corporation i(SFC) to foster the commercial ‘production of synthetic fuels, including fuels from coal, tar sands, heavy oi‘, biomass, and municipal and industrial waste. S. 932 sets forth a national goal of achieving by 1995 the capability of producing at least 1.5 million barrels per day of crude oil equivalent from domestic synfuels resources. To accomplish this goal, the SFC is empowered with numerous responsibilities and authorities, including: (1) solicitation . of proposals from organizations interested in the construction or operation of synfuels projects; and (2) provision of financial assistance to accomplish cns- 8 n3792u5 UPDATE-O2/25/F80 specified production goals, preference being given (in decreasing order of priority) to price guarantees or purchase agreements, loan guarantees, loaz , and joint-ventures. Under certain restricted conditions, the SFC is also authorized to own and to contract for the construction and operation of not more than three synthetic fuels projects. After the first five years of the SFC's operations, the Corporation is prohibited from undertaking or expanding any self—owned projects. 5. 932 contains severali provisions that .could promote environmentally acceptable synfuels operations. For example, any group requesting financial assistance from the SFC must develop a plan, acceptable to the SFC's Board of Directors, for the monitoring of environmental and health-related emissions, from the construction and operation of the synfuels project. This plan is tot he developed after consultation with the Administrator of the Environmental Protectionl Agency. and the Secretary of Energy, and appropriate State agencies- In addition, the SFC is authorized to consult with they Governors of the States in which proposed Government-owned or joint venture projects would be located with regard to the manner in which the project would be developed and regulatory licensing and related governmental activities pertaining to such projects. This legislation also specifies several mechanisms designed to either protect the financial interests of the SFC or to encourage risk-taking by the private sector. For example, 5. 932 specifies that in no. case shall the aggregate amount of financial assistance to any one organization exceed 15% of the obligation authority of the Corporation. S. 932 alsoy specifies that whenever a combination of one or moret forms of financial assistance ; iawarded to a single project, the SFC‘must ensure that the recipient shall bear a reasonable degree of risk in the construction and, operation, of the p project. As proposed in S. 932, the SFC is directed to ensure mthati its financial assistance encourages.and supplements, but does not compete with nor supplant % any private capital investment which otherwise‘ could hem available at a reasonable cost. fwhether the SFC's activities pwould havei this effect is uncertain. Depending on the incentive package offered, the Corporation's actions could reduce the willingness of the privatei market to finance synfuels projects or reduce the willingness of synfuels investors to obtain private financing. iAs currently proposed, it is also uncertain whether the SFC will promote ,large scale production of liquid synfuels in a timely fashion. The Board of pnirectors of the SFC may be unwilling or unable to offer the types of incentives that would attract huge investments from the petroleum industry (which has the financial, technical, and managerial ~resources required for large synfuels plants). According to the Advisory Panel on Synthetic Fuels, a panel of experts passembled by the House pcommittee our Science and Technology, the petroleum ,industry mhas limited, need for the types of’“ incentives that could be provided by the TSFC. Furthermore, this panel recommended that if large scale production is desired, the Congressm should couple the SFC's incentives with new tax advantages thatw would promote t petroleum industry's investment in commercial projects. (See Advisory Panel on Synthetic Fuels report in REFERENCES section.) . A ' Additional information on the SFC can can’be obtained. from Issue Brief 79090. F .v » cns- 9 3379245 UPDATE-O2/25/80 LEE]? 31-..A..‘l’.l_0.2! H.R. 1969 (Johnson of Colo. et al.) Amends the Internal Revenue Code to allow a limited nonrefundable income tax credit for the production of shale oil. Introduced Feb. 8, 1979: referred to Committee on ways and Means.) H.R. 2576 (Price by request, et al.) Authorizes appropriations for FY80 for the Department of Energy concerning the conservation, development, and use of naval petroleum and oil shale reserves. Introduced Har. 1, 1979; referred to Committee on Armed Services. A clean bill, H.R. 335a, was forwarded to full committee Mar. 28, 1979. H.R. 3000 (staggers et al.)/S. 688 (Jackson) Authorizes appropriations to the Department of Energy for civilian programs for FY80 and FY81, and other purposes. Bill authorizes DOE's synfuels program including research, development, and demonstration programs on oil shale, coal gasification, coal liquefaction, and biomass. Introduced Mar. 15, 1979; referred to more than one committee. Identical, Senate bill introduced on same day and referred to Committee on Energy and Natural Rr aurces. Numerous hearings held by House committees and subcommittees on H.A. 3000 in March, April, and Hay. Consideration and mark-up held by Committee on Interstate and Foreign Commerce on Hay 2 and 3. Ordered to be reported, amended, on May 3, 1979. The House Committee ton Science and Technology held numerous hearings on H.R. 3000 and reported this bill on may 15, 1979 (H.Rept. 96~196). Senate committee and subcommittees held hearings on S. 688 in March and April. Senate Committee on Energy and Natural Resources held mark-up session may 2. The Committee favorably reported 3; 688 with an amendment and an amendment to the title (S.Rept. 96-232) on June 26, 1979. ueasure passed House, amended (inserted text of H.R. H839), roll call no. 596 (263-150), Oct. 20, 1979. ' ' ‘ mH.R. 3030 (smith of Heb.) Extends for an additional five years the provisions of the Energy Tax Act of 1979 which exempted certain alcohol fuels from federal motor fuels excise taxes. Introduced Mar. 15, 1979; referred to Committee on Ways and Beans. H.R. 3350 (Stratton) Authorizes appropriations for FY80 to the Department of Energy fort conservation, development, and use of naval petroleum reserves and naval oil shale reserves. Introduced Har. 29, 1979; referred to Committee on Armed Services. « ,ill was reported to House by Committee on Armed Services (H.Rept. 96-91) on Apr. 9, 1979. Rules Committee Resolution (H.Res. 228) reported to House Apr. 2a, 1979. ' vBill was received in Senate Apr. 26. Senate Committee on Armed Services favorably reported bill with amendments (S.Rept. 96~325) Sept. 19, 1979. Passed Senate with amendment by voice vote on Sept. 27, 1979. Conference CBS-10 HB792fl5 UPDATE‘0Z/23/80 report filed in House (H.Rept. 96-596) and in Senate (S.Rept. 96-#10) Nov. 8. Senate agreed to conference report Nov. 9, 1979. H.R. 3905 (Bedell et al.) Amends the Rural Development Act of 1972 to authorize’ the Secretary of Agriculture to guarantee loans for the construction and maintenance of plants for the production, of fuel alcohol from, corn and other agricultural commodities. Amends the Agricultural Act of 1909 to set the loan level and the established price of the 1982 crop of corn. Introduced May, 3,, 1979; referred to more than one committee. ’Committee on Agriculture reported H.R. 3905 to House, with amendment (H.Rept. 96-515, pt. 1), Oct. 12, 1979. H.R. 3919 (Ullman) 0 Crude Oil Windfall Profit Tax Act of 1979. Includes the text of 3.2 1746 (Bayh) dealing with gasohol excise tax rebates, and includes text of S. 1200 (Bayh)l dealing (with simplification of ATP regulation of alcohol, fuel nproduction., Eliminates 4 cents per gallon excise tax exemption for gasohol,‘ and replaces it with a tax credit of #0 cents per gallon of alcohol that is mixed with gasoline to make gasohol (the tax credit is 10 cents per gallon .for alcohol produced from coal). znCommittee on Days and vueans reported bill, with amendment (H.Rept. 996-304), June 22, 1979. ,1House passed measure, amended, June, 28, 1979. Senate Committee on Finance reported bill, with amendment (S.Rept. 96-394\, Nov. 1, 1979. Passed Senate (7u-2u) Dec. 17, 1979. '. ' H.R. 3930 (noorhead of Pa. et al.) Defense Production Act Amendments of 1979 (House "synfuels“ bill). neets national goals for total synthetic fuel (including gasohol) production of 500,000 barrels per day (in 1985 (2 million in 1990). Extends Defense Production Act and authorizes $3 billion for the President to ibuy synthetic fuels. Committee on Banking, Finance, and Urban Affairs reported bill, with amendment (H.Rept. 96-165), Hay 15, 1979. House passed bill,i amended, roll call #283 (368—25) and passed 5. 932 in lieu on June 26, 1979. (see 3. 932). H.R.‘fl401x(Hineta) Replacement Hotor Fuels Act of 1979. Establishes a program to promote the phdevelopment and use of replacement fuels in the United States for the purpose ’(of replacing gasoline used as a motor fuel with alcohol or other liquid produced from coal, oil, shale, and other substances. Directs the secretary ipof Energy to set production goals for such fuels. Introduced June 8, 1979; referred to Committee on Interstate and Foreign Commerce. 3.2 . use 0 (Din gell) Establishes incentives to advance the commercialization and use of solar energy, wind energy: urbane waste, and other renewable energy sourcr . Authorizes appropriations for FY80 and subsequent years for energy projects involving solvent refined coal, coal gasification, and other energy sources. Introduced June 15, 1979; referred to more than one committee. H.R. u51u, H.R. 3583 (Perkins et al.) Amends the ComprehensiveEmp1oyment and Training Act (CETA) to direct them cns-11 uB792u5 UPDATE-02/25/80 Secretary of Labor ("the Secretary"), in cooperation with the Secretaries of Energy and the Interior, to assess and report to Congress on the current and p jected adequacy of the supply of manpower for the development and expansion of energy technologies and industries to meet domestic needs. Requires such assessment to include specific findings and recommendations concerning the additional employment and training programs or projects needed to provide the necessary manpower, for 1980 through 198a, to fully develop and utilize all domestic energy sources. Directs the Secretary to recommend to prime sponsors programs necessary to fulfill such manpower needs for each of the five years. Prohibits the approval of any CETA plan for any fiscal year beginning after Sept. 30, 1980, unless it is reasonably responsive to such recommendations. measure introduced June 18, 1979; referred to Committee on Education and Labor. Referred to Subcommittee on Employment Opportunities June 19, 1979. Subcommittee hearings held June 20. Committee consideration and mark—up held June 27. Committee reported bill, amended, to House (H.Rept. 96~333) on July 13, 1979. Placed on Union Calendar no. 200 the same day. H.R. 5035 (Dingell) Amends the»Energy Policy and Conservation Act to establish a nonprofit corporation to be known as the National Energy Security icorporation to provide for the undertaking of commercial-scale ventures assuring the availability of the maximum amount of energy for domestic use and furthering t“ national goal of a domestic‘ synthetic fuel and feedstock production capacity of 2,500,000,000 barrels of crude oil equivalent. Authorizes the Board of Directors of such Corporation to provide financial assistance to such designated energy projects. Establishes a revolving fund in the U.S. Treasury into which tshall be deposited receipts of the Corporation. Introduced Aug. 1, 1979; referred to more than one committee. S. 750 (Church) Provides for the use of alcohol produced from renewable resources as a motor vehicle fuel. Introduced Har. 26, 1979; referred to Committee on Energy and Natural Resources. A S.‘ 847 (Talmadge et al.) Amends the Internal Revenue Code of. 195R to provide a credit against income tax for each barrel of oil produced from shale and for natural gas produced from geopressured brine. Introduced Apr. 20, 1979; referred to Committee on Finance. 3. 858 (Hart) Directs the Administrator of the Environmental Protection Agency to include oil shale operations on the list of categories of air and water pollution provided under Federal law. Requires the Administrator to e; xblish Federal standards for such operations, and to require persons engaged in such operations to monitor the environmental effects of oil shale operations. 3. 892 (Leahy et al.) Extends the authorization of appropriations for carrying out rural I % cRs-12 m3792u5 UPDATE-G2/25‘/80‘ development research, small farm research, and small farm extension programs. Increases significantly the amount of funding for federal loan guarantees ‘or pilot alcohol plants. $500 million would’ be lprovided for this purpc :. Introduced Apr. 5, 1979; referred to Committee on Agriculture, Nutrition, and Forestry. Hearings held by Subcommittee on Rural ynevelopment Apr. 9. Committee on Agriculture ordered measure reported favorably with amendments and an amendment to the title (S.Bept. 96-188) on may 16, 1979. senate passed bill with an amendment and an amendment to the title by voice vote on June 14, 1979. 9 S. 932 (Jackson et al.) iDefense Production Act Amendments of 1979 (Senate. "synfuels" bill). Establishes a Synthetic Fuels Corporation (SFC), which can provide loan guarantees, purchase guarantees, and guaranteed prices to develop» synfuels. $20 billion authorized for SFC. $1 billion earmarked ‘for basically large‘ size biomass projects. Title II, The Gasohol motor Fuels Act of 1979, includes the following provisions: 7 y iEstablishes national goals of 60,000 barrels per day of alcohol fuels in 1982, and a volume of alcohol fuels from renewable resources equal to 10% oft the estimated domestic gasoline consumption in 1990. Authorizes a maximum of $1.2 billion total fin ‘loan guarantees, price fguarantees and purchase agreements for alcohol fuel, production hfacilit s lthat use renewable resources (one-third of total assistance must go to facilities that can produce no more than 2 million gallons of, alcohol per year.) ' I Authorizes CCC to sell its sugar holdings at less than regular price llevels to producers of ethanol for use in motor fuel. ,Handates USDA-ROT study on need to legislatively require that all new cars Acan use gasohol. ’ .4 2 1 Handates use ofi gasohol in all Federal motor vehicles where it is available at reasonable prices and in ireasonable lguantities (exceptions possible for national security). ‘ ‘ S. 932, as passed, includes the entire ftext of S. 1775, as amended, providing $5 billion authorization for alcohol fuels production. House passed bill, amended, in lieu of H.R. 3930 June 26, 1979. Reported jointly from Senate Committee on Banking, Housing hand Urban Affairs, with amendment (S.Rept..96-387) Oct. 30, 1979. Reported ajointly from Senate Committee on Energy and Natural Resources, with amendment (S.Rept. 96—387),I Oct. 30, 1979. Senate agreed to House amendment, with an amendment, roll call no. 396 (65-19) Nov. 8, 1979. s. 1303 (Jackson et al.) Sets forth a national programfor thefull development of energy supply,. including~a variety of synfuels, and for other purposes. Introduced June 11, 11979; referred to Committee on Energy and Natural Resources. Hearings held by Committee June 20., Hearings held on July 10, 20, 23, 1979 byl several subcommittees of the Committee on Energy and Natural Resources. Committee cns-13 1313792145 UPDATE—02/25/80 reported hill favorably with an amendment to Title (3. 96-331) on Sept. 25. Bill passed Senate with amendments and an amendment to the Title with yea-nay v e 68-25 (recorded vote no. 336) on Oct. H, 1979. Measure passed House, amended, in lieu of H.R. 4985 on Nov. 1, 1979. - Conference scheduled in Senate Nov. 13, 1979. S. 1377 (Domenici et al.) Establishes the synthetic Fuels and Alternate Fuels Production Authority, a government corporation with the authority to provide financing and economic assistance for those sectors of the national economy which are important to the development of domestic sources and the conservation of energy and the attainment of energy independence for the United States in a manner consistent with the protection of the environment; to improve federal government operations so as to assist in the expediting of regulatory procedures .which affect energy development; and for other purposes. Introduced June 19, 1979; referred to Committee on Energy and Natural Resources. 3. 1399 (Eibicoff et al.) Establishes a program to promote the development and use of replacement fuels in the United States for the purpose of replacing gasoline used as at motor fuel with alcohol or other liquid produced from coal, oil, shale, and other substances. Directs the Secretary of Energy to set production goals for such rules. Introduced June 25, 1979; referred to Committee on Energy a" Natural Resources. - S. 1fl09 (Riegle et al.) Defense Production Act Amendments of 1979.; Extends the President's power under such act to purchase raw materials for the national defense through fiscal year 1995. Directs the President to attempt to achieve a national production goal of at least 500,000 barrels per day crude oil eguivalent of synthetic fuels and synthetic; chemical feedstocks within five years. Authorizes and directs the President to require fuel and chemical feedstock suppliers to provide synthetic fuels and synthetic chemical feedstocks in any case where the President deems it practicable and necessary to meet national defense needs. Authorizes the President, in carrying, out these objectives, to: (1) contract for purchases or commitments to purchase synthetic fuels and synthetic chemical feedstocks which may be for Government use or resale; and (2) encourage the development and production of such synthetic fuels and feedstocks for national defense preparedness. v Terminates the President's authority to enter into such contracts at the end of FY95. Sets forth procedures for the awarding and performance of such contracts. Authorizes appropriations of $2 billion for synthetic fuel and feedstock contracts as authorized pursuant to this act. Extends specified provisions of such act through FY80. ’ 1 3111 introduced June 26, 1979; referred to Committee on Banking, Housing, and Urban Affairs. Committee held hearings July 26 and 27, 1979. A S. 1775 (Talmadge et al.) Designates the Department of Agriculture as the lead agency in the Federal Government for the development and production of alternative fuels from cns-12; 331379 245 UPDATE-02/25/A80 biomass. Creates within the Department an Agricultural, Forestry, and. Rural Energy Board to develop and implement the agricultural, forestry, and rt :1 energy production, use; and conservation program. (See 3. 932) Introducefl Sept. 19, 1979;flfir§;er;ea,,to Committee on Agriculture, Nutrition, and Forestry. Reported from committee, with amendment (S.Rept. 96-365), Oct. 11, 1979. n Advisory Panel on synthetic fuels, fundings and recommendations to y the House Committee on Science and Technology. Jan. 31, 1980. 36 p.