Notes and Sources

1 On January 29, 2004, Senator John Sununu requested that the Energy Information Administration (EIA) provide an assessment of five specific tax provisions of the CEB, regarding their impact on incremental energy production, change in petroleum imports, and tax revenue losses. That report, Analysis of Five Selected Tax Provisions of the Conference Energy Bill of 2003, SR/OIAF/2004-01 (Washington, DC, February 2004) was provided to Senator Sununu on February 11, 2004.

2 Energy Information Administration, Annual Energy Outlook 2004, DOE/EIA-0383 (2004) (Washington, DC, January 2004), http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2004).pdf.

3 Energy Information Administration, The National Energy Modeling System: An Overview 2003, DOE/EIA-0581(2003) (Washington, DC, March 2003), web site http://www.eia.doe.gov/oiaf/aeo/overview/index.html.

4 Energy Information Administration, Annual Energy Outlook 2004, DOE/EIA-0383(2004) (Washington, DC, January 2004), http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2004).pdf.

5 Note that the carbon dioxide figures in this report are expressed in carbon-dioxide-equivalent terms rather than the carbon-equivalent terms used in past EIA Service Reports.

6 Small refineries with a capacity not exceeding 75,000 barrels per calendar day and the States of Alaska and Hawaii are exempted from the renewable fuels standard.

7 The Reference Case includes MTBE bans in 17 States (mainly in California, New York, Connecticut, Missouri, and Kentucky), which collectively accounted for about 45 percent of the Nation’s MTBE consumption in 2002.

8 The oxygenate waiver would take effect 270 days after enactment of the CEB, except for California, which would receive the exemption immediately. Because 2005 is the first forecast year for the Petroleum Market Module of NEMS, the oxygenate waiver is effective in that year.

9 The incremental production of corn requires energy inputs to till the land and fertilize, harvest, and transport the corn. These additional requirements are not accounted for in NEMS.

10 Gasoline blended with more ethanol would experience a higher price impact (e.g., gasohol with 10-percent ethanol would experience a price impact of 5.1 cents per gallon) than gasoline containing no ethanol.

11 According to 26 USC 45, “The term ``closed-loop biomass'' means any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity.” Such a supply is also sometimes referred to as “energy crops”.

12 Open-loop biomass refers to a variety of waste and by-product sources including agricultural wastes, forestry and mill waste, urban wood waste, and landscape trimmings, but not from municipal solid waste, recyclable paper, or sources specifically planted to provide energy. According to the CEB, “The term ‘open-loop biomass’ means (i) any agricultural livestock waste nutrients, or (ii) any solid, nonhazardous, cellulosic waste material which is segregated from other waste materials and which is derived from (I) any of the following forest- related resources: mill and harvesting residues, precommercial thinnings, slash, and brush, (II) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste, gas derived from the bio-degradation of solid waste, or paper that is commonly recycled, or (III) agriculture sources, including orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues.”