Energy Policy Act of 2005 (EPACT)
The Energy Policy Act of 2005 (EPACT) is a significant piece of legislation aimed at transforming various facets of the energy industry in the United States. Signed into law by President George W. Bush, it covers a wide range of topics, addressing energy production, conservation, and efficiency over its extensive 1,725 pages. A central aspect of EPACT is its focus on enhancing energy efficiency in federal facilities and fleets, mandating the use of energy-efficient products and the installation of renewable energy sources like solar power. The legislation also emphasizes the importance of alternative fuels, setting goals for the federal government to reduce greenhouse gas emissions and petroleum consumption.
Additionally, EPACT introduced tax incentives for building owners to encourage energy-efficient upgrades and established new efficiency standards for various commercial appliances. It aims to promote research and development in clean energy technologies, including hydrogen fuel cells, and supports the construction of new energy infrastructure, such as transmission lines and nuclear power plants. Overall, EPACT reflects an effort to balance energy needs with environmental considerations, responding to the growing energy challenges of the time.
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Energy Policy Act of 2005 (EPACT)
Summary: The Energy Policy Act of 2005 enacted major energy policy changes. The main provisions of the act addressed energy security, environmental quality, and economic growth.
The Energy Policy Act of 2005 (EPACT) was passed by Congress on July 29, 2005. It was signed into law (Pub. L. 109-58) by President George W. Bush on August 8, 2005. It made sweeping changes in almost every sector of the energy industry. The signing took place at the Sandia National Laboratories in Albuquerque, New Mexico. EPACT contained a variety of incentives, regulator provisions, and goals throughout its 1,725 pages. It also amended portions of the Public Utility Regulatory Policies Act of 1978 (PURPA) and the National Energy Conservation Policy Act (NECPA). EPACT 2005 was amended by the Energy Independence and Security Act of 2007 (EISA 2007) and President Bush’s Executive Order (E.O.) 13423 in order to update many of the energy management goals of EPACT 2005.
Energy for the transportation system and the electrical grid are essential to modern industrial and technological society. Most of the transportation system and electrical system operate on fossil fuels. These are vital to a modern industrial and technological economy. The proponents of the bill had urged its adoption in order to meet growing energy problems. EPACT 2005 combined both energy conservation and environmental protection in its provisions. A very important goal was the “greening” of the federal government’s facilities and its fleet.
The act (sect. 103) mandated that all federal installations be equipped with meters to measure energy efficiency and with equipment that would be energy efficient by October 1, 2012. The secretary of energy was charged with the responsibility of developing implementation guidelines and for identifying personnel (senior sustainability officers) in all agencies who would be accountable for overseeing the implementation of the energy goals. Each agency (sect. 104) is required to procure energy equipment that meets the criteria of Energy Star, which is a government-backed program seeking to protect the environment through superior energy efficiency. In addition, federal agencies must buy energy-efficient products that meet product energy standards designated by the U.S. Department of Energy’s Federal Energy Management Program (FEMP).
Specifics
The Bureau of Land Management was given a key role by virtue of its heavy involvement in the production of energy. Section 109 mandated that federal buildings be built 30 percent below ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) standards or the International Energy Code. This meant that new buildings must incorporate the new energy standards. Section 203 issued renewal energy goals for the federal government. By 2013, it was to be using 7.5 percent renewable energy (solar, wind, biomass, landfill gas, ocean derived energies, geothermal, municipal solid wastes, or existing hydroelectric power). In addition, section 204 required photovoltaic (PV) energy usage in public buildings. A federal commercialization program for PV energy was also mandated, as was the installation of 20,000 solar systems in federal buildings by 2010.
The federal fleet was addressed with mandates for reducing greenhouse gases and petroleum consumption (E.O. 13514). The reductions were to be 2 percent per year through FY2020. Petroleum was to be replaced with alternative fuels. Section 710 of EPACT required the use of alternative fuel vehicles. The EISA 2007 Act (sect. 246) directed federal agencies to install at least one renewable fuel pump at all fleet fueling centers by January 1, 2010. Agency compliance with fleet requirements is to be reported by all agencies by February 15 annually. Tax credits and incentives were some of the tools used to promote the goals of EPACT. Commercial building owners could get a tax deduction of $1.80 per square foot in buildings that save at least 50 percent of their energy costs by meeting ASHRAE Standard 90.-2001 for measures affecting building envelope, lighting, and heating and cooling systems. In addition, buildings that were retrofitted were also eligible for tax deductions. Investment tax credits (ITC) for solar energy and qualified fuel cell properties could be gained. Also, qualified software for calculating building energy and power costs could be included in tax deductions.
The statute contains three historic provisions that the Air-Conditioning and Refrigeration Institute (ARI) negotiated with energy-efficiency groups represented by the American Council for an Energy-Efficient Economy (ACEEE). The act sets minimum efficiency standards for large-package, commercial air conditioners and heat pumps. It also set efficiency standards for commercial refrigerators, freezers, and refrigerator freezers used in restaurants, convenience stores, grocery stores, and other commercial buildings. And it set standards for commercial ice makers.
Section 932 required the secretary of energy to solicit proposals for a variety of research and demonstration activities to stimulate the market for fuel cell vehicles and hydrogen energy systems. In addition, Renewable Fuel Standards (RFS) mandated that gasoline sold in the United States must contain some hydrocarbons derived from biomass fuels sources. Investment incentives were included to help the electric industry build 10,000 miles of transmission lines by 2013. Provisions were also included for building at least one new nuclear power plant, promoting clean coal technology, and Federal Energy Regulatory Commission (FERC) regulatory power over LPG plants.
Bibliography
Holt, Mark, and Carol Glover. Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions. Washington: Congressional Research Service, 2006. Print.
Hornstein, Michael D., and J. S. Gebhart Stoermer. “The Energy Policy Act of 2005.” Energy Law Journal 27 (2006): 25–38. Print.
Spring, Nancy. “The Energy Policy Act of 2005.” Electrical Light & Power. (2007): 14–19. Print.
United States. Cong. House. Energy Policy Act of 2005. Washington: BiblioGov, 2010. Print.
United States. Cong. Senate. Energy Policy Act of 2005. Washington: BiblioGov, 2010. Print.