Environmental Engineering Reference
In-Depth Information
for stimulating investment in advanced renewable, fossil, and nuclear energy
technologies.[5] Specifically, the Energy Policy Act of 2005 extended the
production tax credit established in the Energy Policy Act of 1992 for renewable
technologies for 2 years until January 1, 2008. The act also added a new (1)
investment tax credit of up to $1.3 billion for constructing new clean-coal power
plants and (2) production tax credit of 1.8 cents per kilowatt-hour for up to 6,000
megawatts of new nuclear power capacity lasting 8 years after each qualifying
nuclear reactor begins service. These tax credits and other tax incentives are
legally known as tax expenditures;[6] revenue losses from these tax incentives can
be viewed as spending channeled through the tax system. Historically, the tax
subsidies that the U.S. government has provided to the energy sector have been
directed toward the conventional energy sector. More recently, tax incentives
available in fiscal year 2006, such as the new technology tax credits, have also
been directed toward stimulating the development and deployment of advanced
energy technologies (see app. I).
You asked that we assess the nation's ability to meet its energy needs through
2030 by examining DOE's efforts to diversify the nation's energy portfolio and
reduce its dependence on oil and natural gas. Specifically, we examined (1)
DOE's R and D funding trends and strategies for developing advanced renewable,
fossil, and nuclear energy technologies; (2) the key barriers to developing and
deploying technologies that will address the nation's future energy needs; and (3)
the efforts of states and selected countries to develop and deploy renewable,
fossil, and nuclear energy technologies that address future energy needs.
To ensure that we obtained a balanced view of future U.S. energy challenges,
we reviewed documents and interviewed DOE officials, including program
managers and laboratory scientists; senior industry executives; independent
experts; officials of several state governments and states' associations; and
representatives of foreign governments and industry associations. More
specifically, to review DOE's R and D funding trends and strategy for developing
advanced energy technologies, we analyzed DOE's (1) budget authority data for
renewable, fossil, and nuclear energy R and D from fiscal year 1978 through
fiscal year 2006, adjusted for any advanced appropriations and rescissions, and (2)
strategic plans for developing and deploying new energy technologies. For
perspective, we also reviewed revenue losses due to energy-related tax
expenditures for fiscal years 2000 through 2006. To assess the key technological,
economic, and other barriers, we analyzed various energy studies and interviewed
senior officials at DOE and the Nuclear Regulatory Commission (NRC), which
regulates the construction and operations of nuclear power plants, industry
executives, and independent experts. To examine the efforts of states and selected
