frederick m. sellars senior vice president trc environmental corporation
DESCRIPTION
The Energy Policy Act of 2005 M arket Opportunities Environmental Business Council October 11, 2005. Frederick M. Sellars Senior Vice President TRC Environmental Corporation. The Energy Policy Act of 2005. Signed into law August 8, 2005 - PowerPoint PPT PresentationTRANSCRIPT
The Energy Policy Act of The Energy Policy Act of 20052005
MMarket Opportunitiesarket Opportunities
Environmental Business CouncilEnvironmental Business CouncilOctober 11, 2005October 11, 2005
Frederick M. SellarsFrederick M. SellarsSenior Vice PresidentSenior Vice President
TRC Environmental CorporationTRC Environmental Corporation
The Energy Policy Act of The Energy Policy Act of 20052005
• Signed into law August 8, 2005Signed into law August 8, 2005
• Far-reaching implications for numerous components of the Far-reaching implications for numerous components of the energy industryenergy industry
• Several provisions represent significant industry Several provisions represent significant industry opportunities:opportunities:– Repeal of the Public Utility Holding Company Act (PUHCA)Repeal of the Public Utility Holding Company Act (PUHCA)– Incentives to encourage the development of petroleum resourcesIncentives to encourage the development of petroleum resources– Incentives to encourage LNG, coal gasification and nuclear Incentives to encourage LNG, coal gasification and nuclear
energy development energy development – Incentives to encourage construction of new electric Incentives to encourage construction of new electric
transmission facilitiestransmission facilities– Incentives to encourage the development of renewable energy Incentives to encourage the development of renewable energy
projectsprojects– Incentives for energy efficiency improvementsIncentives for energy efficiency improvements
• Utility mergers no longer need to Utility mergers no longer need to be contiguous or demonstrate be contiguous or demonstrate transmission pathwaystransmission pathways
Market Opportunities:Market Opportunities:
• M&A opportunitiesM&A opportunities
• Merging companies may require Merging companies may require valuation and transfer of liabilitiesvaluation and transfer of liabilities
Repeal of PUHCARepeal of PUHCA
Incentives for Development Incentives for Development
of Petroleum Resourcesof Petroleum Resources
• Tax rule changes aimed at encouraging refinery Tax rule changes aimed at encouraging refinery expansionexpansion
• National assessment of oil and gas resources and National assessment of oil and gas resources and reservesreserves
• Financial assistance for remediation of orphaned Financial assistance for remediation of orphaned oil and gas well sitesoil and gas well sites
Market Opportunities:Market Opportunities:• Refinery capacity expected to double by 2025 Refinery capacity expected to double by 2025
creating opportunities for permitting of new creating opportunities for permitting of new refineries, refinery expansions and new offshore refineries, refinery expansions and new offshore oil and gas sitesoil and gas sites
• Remediation opportunities for abandoned oil and Remediation opportunities for abandoned oil and gas well sitesgas well sites
Energy Facility Siting and Energy Facility Siting and Development IncentivesDevelopment Incentives
• FERC given primacy over siting LNG facilitiesFERC given primacy over siting LNG facilities
• Accelerated depreciation for natural gas and electric Accelerated depreciation for natural gas and electric transmission lines as well as coal gasification projectstransmission lines as well as coal gasification projects
• Production tax credit for advanced nuclear powerProduction tax credit for advanced nuclear power
• Favorable tax provisions for installation of emission controls Favorable tax provisions for installation of emission controls at existing power plantsat existing power plants
• Designation of utility corridors in the WestDesignation of utility corridors in the West
Market Opportunities:Market Opportunities:• Continued favorable climate for LNG developmentContinued favorable climate for LNG development
• Increased opportunities for coal gasification projectsIncreased opportunities for coal gasification projects
• Return of nuclear power?Return of nuclear power?
• Increased opportunities for emission control retrofit projectsIncreased opportunities for emission control retrofit projects
• Linear project permitting in designated “corridors”Linear project permitting in designated “corridors”
Transmission Facility Transmission Facility Construction IncentivesConstruction Incentives
• Uniform reliability standardsUniform reliability standards
• Accelerated depreciation for transmission facility Accelerated depreciation for transmission facility investmentinvestment
• DOE designation of “national interest transmission DOE designation of “national interest transmission corridors”corridors”
• FERC “backstop” approval and eminent domain FERC “backstop” approval and eminent domain authorityauthority
• FERC rate-setting directives to encourage investmentFERC rate-setting directives to encourage investment
Market Opportunities:Market Opportunities:
• Increased permitting, engineering and construction Increased permitting, engineering and construction activity for electric transmission facilities, especially in activity for electric transmission facilities, especially in congested areas (Northeast), where the grid is weak congested areas (Northeast), where the grid is weak (Midwest), and in key energy corridors (West)(Midwest), and in key energy corridors (West)
Incentives for Renewable Incentives for Renewable EnergyEnergy
• Production tax credit extension to 2007Production tax credit extension to 2007
• Additional renewable energy technologies Additional renewable energy technologies coveredcovered
• Federal government purchasing requirementFederal government purchasing requirement
• Non-binding “sense of Congress” directive to Non-binding “sense of Congress” directive to Secretary of Interior to approve up to 10,000 Secretary of Interior to approve up to 10,000 MW of non-hydropower renewable energy on MW of non-hydropower renewable energy on public lands by 2015public lands by 2015
Market Opportunities:Market Opportunities:• Continuity wind power development activityContinuity wind power development activity
• Increased development activity for other Increased development activity for other renewable technologies (biomass, hydro, renewable technologies (biomass, hydro, wave, current and tidal power)wave, current and tidal power)
Energy Efficiency ProvisionsEnergy Efficiency Provisions
• Tax deductions for 2006 and 2007 for Tax deductions for 2006 and 2007 for energy efficiency upgrades to commercial energy efficiency upgrades to commercial and industrial buildingsand industrial buildings
• Business tax credit for purchases of fuel Business tax credit for purchases of fuel cells or microturbinescells or microturbines
• Utilities must offer net metering, smart Utilities must offer net metering, smart metering and interconnection service to metering and interconnection service to customers with onsite generationcustomers with onsite generation
Market Opportunities:Market Opportunities:• New opportunities for energy New opportunities for energy
management and distributed generationmanagement and distributed generation