U.S. agriculture is not an especially energy-intensive industry, but energy does account for about 6% of farm production costs. Additionally, farming is a highly mechanized industry and requires timely energy supplies at particular stages of the production cycle in order to achieve optimum yields. A substantial part of energy use by agriculture is indirect —embodied in the chemicals applied and machinery used on farms.
President Bush has issued a comprehensive energy policy initiative, which includes limited energy tax measures; the Administration has criticized such measures as being inconsistent with its free market philosophy. Several of the issues that drove energy policy and energy tax policy during the 106th Congress are extant: 1) tax incentives to increase the supply of oil and gas; 2) energy tax issues relating to energy conservation and energy efficiency; 3) energy tax issues relating to alternative fuels; 4) energy taxes/subsidies and residential energy costs; and 5) issues relating to electricity restructuring. In addition, there are certain energy tax provisions that are either expiring or are time-sensitive that the 107th Congress may choose to take action on.
This report briefly examines federal statutes which set out the authority which various federal agencies may have in a proposed merger or acquisition of electric utilities.
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