Summary of Boucher CCS Bill with Changes Post-Introduction
October 23, 2008
The following provides an overview of the Boucher CCS bill as revised and presented as
a “staff discussion draft” on September 2, 2008.
-A referendum may be conducted by a qualified industry organization (APPA, NRECA,
EEI or a successor organization) among owners/operators of distribution utilities
delivering fossil-fuel based electricity.
-Two-thirds of the owners/operators of fossil-fuel based delivered electricity must agree,
through the referendum, to establish a new “Carbon Storage Research Organization”
(“CSRO”). The voting rights for the referendum are based on the amount of fossil fuelbased electricity delivered by each utility (but there is no delineation of the process for
determining the voting rights in the legislation).
-An independent auditing firm must oversee the referendum.
-Regardless of the outcome of the electric utility referendum, if 40% or more of the states
object to the formation of the CSRO, then it will not be established. States must inform
the independent auditing firm of their objections within 180 days of enactment of the
legislation.
-The CSRO is authorized to assess fees for 10 years and is dissolved in 15 years unless
explicitly extended by Congress.
-The CSRO is an affiliate of the Electric Power Research Institute (EPRI), but the CSRO
has its own Board of no more than 15 members.
-EPRI shall, in consultation with APPA, EEI and NRECA, appoint the Board members of
the CSRO. The Board shall include one representative from each of the following
groups:
1) Investor-owned utility
2) Municipal, state or federal utility (note that, as of this writing, the drafters of
the bill have agreed to create two separate seats for this category – one for
public power and one for federal utilities)
3) Rural electric cooperative
4) Fossil-fuel producer
5) Non-profit environmental organization
6) Independent power producer
7) Consumer group
-The Board will also consist of three non-voting members – one representative of the
Department of Energy and two State Utility Commissioners.
-There is no compensation for Board membership.
-Board members are appointed to four-year terms and are prohibited from serving more
than two consecutive four-year terms.
-The CSRO is not part of the federal government.
-The CSRO awards grants and contracts to support “commercial-scale” (note that this
phrase is not defined in the legislation) carbon, capture and/or storage projects. (The
grant money is derived from the fees delineated below.)
-The eligible grant recipients include: distribution utilities; academia; national
laboratories; federal and state research agencies; non-profit entities; and consortia of two
or more of these groups.
-The CSRO must make research publicly available at no cost.
-The Board must develop intellectual property policies.
-No more than five percent of the funds collected by the CSRO through the fee
assessment on fossil-fuel distributors (more on the fee delineated below) may go to
administrative expenses.
-There is a public comment and review process regarding the CSRO’s annual budget.
-Public records and audits of the CSRO are explicitly required.
-Public meetings of the Board are also required unless an exception is made pursuant to
the legislation.
-An annual report to Congress is required.
-The CSRO shall impose the following fees/assessments (annually) on distribution
utilities based on the fossil-fuel electricity delivered:
1) Coal – 43 mils/MWh
2) Natural Gas – 22 mils/MWh
3) Oil – 32 mils/MWh
-These assessments can be adjusted by the Board so that not more than $1.1 billion is
collected annually, but not less than $1 billion is collected.
-If 75% or more of the fees are not spent within seven years, then the money gets
reimbursed to the distribution utilities that paid the fees.
-The Department of Energy’s Energy Information Administration (EIA) determines the
amount of fossil fuel distributed by each distribution utility each year – following notice
and comment.
-EIA’s methodology for making this determination can be updated if changes will
improve the accuracy.
-Rehearing is authorized for distribution utilities within 30 days of EIA promulgating the
fee for each distribution utility.
-Judicial review is also explicitly authorized.
-Cost recovery for IOUs is explicitly authorized.
-A “Technical Advisory Committee” is established to advise the CSRO and to make
independent assessments and technical evaluations of the projects receiving grants.