Energy Policy Act of 2005 (EPAct 2005) | Practical Law

Energy Policy Act of 2005 (EPAct 2005) | Practical Law

Energy Policy Act of 2005 (EPAct 2005)

Energy Policy Act of 2005 (EPAct 2005)

Practical Law Glossary Item 5-520-9935 (Approx. 3 pages)

Glossary

Energy Policy Act of 2005 (EPAct 2005)

A federal law making significant changes to US energy laws and policy (42 USC § 13201 et seq). Among other things, it:
  • Authorized the Federal Energy Regulatory Commission to:
    • approve the siting of transmission facilities under certain circumstances;
    • promote the development of transmission facilities by giving incentives (including more attractive rates of return on equity and advantageous accounting methods) to encourage investment;
    • require utilities to give non-affiliated energy suppliers open and non-discriminatory access to their transmission lines;
    • oversee the reliability standards governing the US electric grid; and
    • prevent manipulation of the wholesale electricity market.
  • Amended the Energy Policy Act of 1992 to extend and expand federal income tax credits such as the investment tax credit and the production tax credit.
  • Amended the Public Utility Regulatory Policies Act of 1978 to authorize the US Secretary of Energy to provide grants to:
    • increase energy efficiency, siting, or upgrading transmission and distribution lines serving rural areas; and
    • modernize electric generation facilities that serve rural areas.
  • Amended the Safe Drinking Water Act to exclude from the definition of underground injection the underground injection of fluids or propping agents (other than diesel fuels) in connection with hydraulic fracturing operations related to oil or gas, or geothermal production activities. This exclusion is sometimes referred to as the Halliburton Loophole (see Practice Note, Understanding Hydraulic Fracturing: Issues, Challenges, and Regulatory Regime).
  • Directed the US Secretary of Energy to conduct programs of renewable energy research, development, demonstration and commercial application, including solar energy, wind energy, geothermal energy and ocean and wave energy.
  • Repealed the Public Utility Holding Company Act of 1935, which regulated electric utilities, including limiting their activities and geographic scope and enacted the Public Utility Holding Company Act of 2005, a less expansive regulatory regime.
For more information on the EPAct of 2005 and the renewable energy sector generally, see Practice Notes: Renewable Energy: Overview (US) and Understanding Renewable Energy: Solar.