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WASHINGTON—The U.S. Senate on Friday passed a long-overdue and comprehensive energy bill to diversify energy sources, increase domestic production, and grow jobs in Texas. In a vote of 74-26, the Senate passed the bipartisan Energy Policy Act (H.R. 6). U.S. Sen. John Cornyn (R-Texas) applauded passage of the bill, saying the legislation was “a significant victory for consumers and our national energy security.” The bill now moves to the President for his signature.“It was a long time coming, but all in all I believe that this is a good bill for Texas,” Cornyn said. “It will decrease our dependence on imported energy while continuing to take advantage of what is really our strength—our ability to research and develop innovative, alternative fuel sources that will be much cleaner and much more environmentally friendly.”The legislation will increase energy efficiency, provide incentives for renewable energy and oil and gas production, encourage development of coal and hydrogen, and reduce dependence on foreign energy sources. “We need to make sure that we have the tools to effectively compete in the global competition for oil and gas resources. Fortunately, much of it is present in Texas, the U.S., and off our shores—we simply need to provide incentives for that to be developed. That’s going to improve our supply, help bring prices down, and improve our national security because we won’t be so dependent on imported energy just to supply our basic needs.”The scope of this bill addresses many different types of energy sources, including research into clean coal technology. The research incentives in the bill will help better take advantage of this abundant resource in a way that’s clean and environmentally friendly. It also provides the incentives for nuclear power, a clean alternative. When done safely, as it can be, it provides a ready source of energy, particularly for electric power generation.The following are highlights of the Energy Bill

• An ethanol mandate requiring fuel manufacturers to use 7.5 billion gallons of ethanol in gasoline by 2012 – a move that will reduce oil consumption by 80,000 barrels of oil a day by 2012, according to Energy Information Administration.
• An ambitious efficiency and conservation program that sets first-time efficiency standards for 14 large appliances and raises the efficiency standards for others.
• A strong federal program to design and deploy clean coal technologies so America can continue to use its 250-year supply of coal while protecting our air and water. 
• Provisions to encourage the expansion and modernization of the electricity grid as well as new mandatory reliability rules designed to prevent future blackouts.
• Provisions aimed at preventing manipulation of gas and electricity prices. The provisions authorize FERC to proscribe rules necessary to protect price transparency. FERC can establish an electronic reporting system if existing price reporting is not adequate. 
• Provisions to ensure an adequate supply of natural gas in the coming years, including clarification of FERC’s exclusive authority to site LNG facilities. The bill further ensures supply by creating a clear process for siting natural gas infrastructure such as pipelines and storage.
• A hydrogen research program in conjunction with federal labs, universities and auto manufacturers to design hydrogen cars. 
• A federal loan guarantee program to encourage the design and deployment of innovative technologies such as coal gasification and advanced nuclear power plants aimed at diversifying and increasing energy supply while protecting the environment.
• A stand-by support program to ensure that consumers do not have to pay higher electricity bills because of unforeseen delays in the construction of new nuclear power plants due to bureaucratic red tape or litigation. The program insures the utilities for the cost of these delays.
• Authority to the Nuclear Regulatory Commission to improve the already high-level security at nuclear power plants. 
• A Climate Technology program that directs the Secretary of Energy to lead an inter-agency process to develop and implement a national climate technology strategy. This provision also establishes an executive branch Climate Coordinating Committee and Climate Credit Board to assess, approve and fund these projects. Using greenhouse gas intensity as a measure of success, the bill creates incentives for innovative technologies and encourages partnership with other developing nations. 
• Provisions to streamline oil and gas development on existing federal lease sites to bring the fuels to market sooner. 
• Permanent authorization of the Strategic Petroleum Reserve. The bill also authorizes the DOE Secretary to fill the reserve to 1 billion barrels. 
• A DOI inventory of oil and gas resources on the Outer Continental Shelf to enable to the federal government to better assess the extent of these resources.
• Coastal impact assistance of $1 billion over four years to energy-producing states to assist in coastal enhancement and conservation programs. 
• Reformation of the hydropower licensing process in the Federal Power Act to achieve more reasonable mandatory conditions and ensures full third party participation.
• Creation of a competitive geothermal leasing program that allows the private sector – not just government geologists – to identify geothermal areas for leasing. The program is intended to bring geothermal energy to the market sooner. Geothermal heat is a completely clean and renewable energy source. 
• Incentives to counties to encourage geothermal development and by allowing them to keep a percentage of the royalties from that development. 
• Establishment of a task force to make recommendations on a national oil shale and tar sands leasing program.  The bill creates an oil shale R&D program. The bill also directs the DOI Secretary to conduct a commercial lease sale for oil shale in states where the Secretary finds support and interest for doing so. The U.S. Geological Survey estimates the United States has 2 trillion barrels of oil locked in oil shale, primarily in Colorado, Utah and Wyoming. The country has an additional 80 billion barrels of oil in tar sands, primarily in Utah. 
• Instructions to NHTSA to look for ways to improve Corporate Automobile Fuel Efficiency standards while taking into consideration the impact on automobile safety, jobs and the economy.
• Tougher requirements for federal alternative fuel fleets to ensure these vehicles actually use clean alternative fuels. 
• Creation of the joint flexible fuel hybrid vehicle commercialization initiative to improve technologies for the commercialization of hybrid/flexible fuel vehicles. The program is intended to reduce petroleum consumption by bringing new clean technologies to the market faster. 
• Creation of new programs to create railroad efficiency, aviation fuel conservation and emission reductions, reduce heavy engine idling times to reduce fuel consumption and pollution and to promote ultra-efficient energy technology for air crafts.
• Authorization of appropriations to NHTSA to promote implementation and enforcement of fuel economy standards.

Sen. Cornyn is a member of the following key Senate Committees: Armed Services; Judiciary; Budget; Small Business and Entrepreneurship; and Joint Economic. He is also the chairman of the subcommittees on Immigration, Border Security and Citizenship and Emerging Threats and Capabilities. Cornyn was previously Texas Attorney General, Texas Supreme Court Justice and Bexar County District