Notes and Sources

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

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

3 http://www.house.gove/jct/x-101-03.pdf.

4 The term ``closed-loop biomass'' refers to any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity.  This supply is also sometimes referred to as "energy crops".  “Open-loop biomass" generally refers to a variety of waste and by-product sources of organic material including agricultural wastes, forestry and mill waste, urban wood waste, and landscape trimmings.

5 Energy Information Administration, Petroleum Supply Annual, Vol.1, DOE/EIA-0340 (1992, 1998, and 2002) (Washington, DC).

6 Coke production increases through January 1, 2007, are assumed to be through advancement in catalyst technologies. The few new cokers added in the past decade were largely offset by the number of closures or coker conversion to other uses at refineries.

7 The existing coke gasifiers include: Motiva Enterprises – Deleware City, DE; Frontier Oil – El Dorado, KS; and Farmland Industries – Coffeyville, KS. Two coke gasifiers are planned for TECO/Citgo – Lake Charles, LA and Shell – Deer Park, TX. Two refineries using heavy oil as feedstock to produce syngas do not qualify for the tax credit under Section 1345.

8 Mr. Chris Overend of Joint Committee on Taxation clarified that coke and coke gas under Paragraph (7) would also be subjected to Paragraph (8) provisions, thus the same daily limit on the tax credit allowed as other qualified fuels.

9 Energy Information Administration, Analysis of S.139, the Climate Stewardship Act of 2003, SR/OIAF 2003-02, (Washington, DC, June 2003). See also http://www.eia.gov/oiaf/servicerpt/ml/pdf/sroiaf(2003)02.pdf. Note that the negative portions of the EPA marginal abatement cost curves for coal-mine methane in the analysis of S.139 were adjusted so that negative marginal costs were changed to $1/ton. Since a negative marginal cost implies that a portion of the resource is economic to extract, the negative marginal cost portions were assumed to be already accounted for in the NEMS coalbed methane resource base and not used for this calculation to avoid double counting.

10 The most significant obstacle to taking advantage of the methane from coal opportunity is the shortness of the period for cost recovery. Since methane production from coal mines is much slower than gas produced from convention gas wells, recovery of the necessary infrastructure costs is likely to be a major impediment for some locations. Finally, the extent to which the more economic coal-mined methane resources will coincide with the new coal mines planned in the allowable period is unknown.

11 The IRS defines each barrel of oil equivalent as having 5.8 million Btu.

12 As defined in Section 48A(e), this provision excludes integrated gasification combined cycle because it is specifically defined as an advanced clean coal technology in Section 48A(e).

13 Per Paragraph (8) of Section 1345, the amount of qualified unconventional fuels for the Section 29 tax credit is limited by an average barrel-of-oil equivalent of 200,000 cubic feet of natural gas per day (or 35.4 barrels-of-oil per day).

14 These are major energy producers who are required to file form EIA-28 (Financial Reporting System). FRS companies account for almost half of total U.S. oil and gas production.

15 Energy Information Administration, Short-Term Energy Outlook, January 2004, http://www.eia.gov/emeu/steo/pub/pdf/jan04.pdf, Table 4.

16 Energy Information Administration, Performance Profiles of Major Energy Producers, DOE/EIA-0206, (Washington, DC), various annual editions, Table 4.