President Bush Signs Major Energy Legislation
On August 8, 2005, President Bush signed into law the first
comprehensive energy legislation in a decade. The Energy
Policy Act of 2005 is designed to encourage energy efficiency and
conservation, promote alternative and renewable energy sources,
reduce dependence on foreign sources of energy, and increase
domestic production.
The new legislation offers a range of tax credits for
consumers—for purchasing more energy efficient central air
conditioners, heat pumps, water heaters, hybrid-cars, advanced
lean-burn technology vehicles, and fuel-cell vehicles. Other tax
incentives, purchasing programs, grant programs are included to
stimulate the production and sales of alternative fuel vehicles.
The new law generously authorizes a comprehensive
program focused on hydrogen-based vehicles,
energy production, and fuel cells. In total,
the new law authorizes more than $3 billion in
hydrogen research, development, and demonstration
over five years.
Research and Development: The new law authorizes a
significant R&D program on technologies for the production,
distribution, storage, and use of hydrogen energy, fuel cells,
and related infrastructure. The program is to demonstrate and
commercialize the use of hydrogen for vehicle transportation,
utility, industrial, commercial, and residential applications. For
projects related to hydrogen production, storage, distribution, and
transport, the new law authorizes $160 million for FY 06, growing
to $250 million by FY 10. For projects related to fuel cells, the law
authorizes $150 for FY 06, growing to $200 million by FY 10.
Demonstration Program: The new law authorizes a
program to demonstrate developmental hydrogen and fuel cell
systems for mobile, portable, and stationary uses (such as light- and
heavy-duty vehicles, fleet vehicles, industrial and farm vehicles,
electric power generation). For demonstration programs, the new law
authorizes $185 million for FY 06, growing to $375 million by FY 2010.
TechVision21 Inside View: It’s going to take a while for
Washington to sort out this massive energy bill. As the dust
settles, Inside View will keep you posted. Nevertheless, higher
gas prices, and energy supply disruptions caused by Katrina may
provide strong budget impetus for these programs; we might see
funding levels closer to authorization in the next couple of years.
For more information on any of these Administration initiatives,
and how they may affect your organization, please contact
us at info@techvision21.com or
(202) 263-0168.
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