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Historical energy policy in the United States

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This article on historical United States energy policy outlines information related to energy policy decisions, legislation, and political context from 1970 to 2016.

See also: Energy policy in the United States

Overview of energy policy

Energy policy in the United States aims to provide reliable, affordable energy for consumers in a way that maintains environmental and health protections and minimizes pollution and other negative environmental and health impacts. According to a 2015 report by the Congressional Research Service, the three main goals of energy policy in the United States since the 1970s have been "to assure a secure supply of energy, to keep energy costs low enough to meet the needs of a growing economy, and to protect the environment while producing and consuming that energy."[1][2][3][4]

Energy policy (1970s-2000s)

1970s

In 1973, Arab members of the Organization of the Petroleum Exporting Countries (OPEC) imposed a ban on petroleum imports into the United States and other countries that supported the state of Israel during the Arab-Israeli War. OPEC also cut oil production, leading to fuel shortages and an increase in U.S. gasoline prices. During this time, the federal government imposed price controls to encourage oil imports over domestic production. According to the U.S. State Department, the economic effects of the 1973 embargo indicated a shift in worldwide financial power away from more developed nations to oil-producing states. The United States negotiated with OPEC members for an end to the embargo in March 1974.[5][6]

Gasoline prices are set globally, and international events can effect domestic energy prices.

In response to the embargo's aftermath and higher domestic gasoline prices, Congress passed the Energy Policy and Conservation Act (1975), which directed the president to ban crude oil exports except for select types of oil. The act also authorized the following:[5]

  • Creation of the Strategic Petroleum Reserve, a federally managed emergency supply of petroleum in underground caverns along the Gulf of Mexico
  • Average fuel economy standards for passenger vehicles beginning in model year 1978
  • Federal authority for the U.S. Department of Transportation to establish fuel economy standards for light- and heavy-duty trucks and other vehicles
  • A schedule to end federal oil price controls

1980s and 1990s

From 1978 to 1982, U.S. petroleum use fell from 18.8 million barrels per day to 15.2 million barrels per day. This decline was caused primarily by high crude oil prices; the replacement of crude oil with other fuels; and voluntary conservation due to high prices. Beginning in 1981, President Ronald Reagan (R) accelerated the statutory schedule to end crude oil price controls under the 1975 Energy Policy and Conservation Act. In 1985, higher oil prices prompted OPEC to produce more oil for the international market, which led to a drop in oil prices. Following the August 1990 invasion of Kuwait by Iraq, oil prices rose from $16 per barrel to $36 per barrel. In response, OPEC produced more oil in an attempt to stabilize prices.[5]

2000s

Areas in the Midwest and northeastern United States experienced blackouts beginning in 2003. According to the Congressional Research Service, the regulatory apparatus in the electricity industry leading up to the 2000s had shifted to encourage greater competition in electricity generation. Investments in electricity transmission infrastructure decreased as electric power supplies and electricity demand increased. As a result, transmission lines became congested and produced blackouts.[5]

During the 1990s, natural gas supplies and relatively low prices encouraged greater natural gas consumption in the United States. Several gas-fired power plants delivered electricity incrementally in order to keep electricity delivery stable and avoid supplying the transmission system with too much electricity. Natural gas prices rose from $2.16 per thousand cubic feet of gas in 1999 to $4.00 in 2001. Prices increased further in 2003-2004. This led federal policymakers to permit the expansion and refurbishment of facilities that hold liquefied natural gas (LNG), which is natural gas that has been liquefied for transportation in tankers, particularly for importation and exportation.[5]

2005 Energy Policy Act

According to the Congressional Research Service, the Energy Policy Act of 2005 was "spurred by rising energy prices and growing dependence on foreign oil" and "shaped by competing concerns about energy security, environmental quality, and economic growth." At the time of the bill's passage, the price of crude oil was $63 per barrel and the price of gasoline was $2.33 per gallon. In 2005, the U.S. imported 58 percent of its crude oil.[7]

The Energy Policy Act of 2005 was passed by the 109th United States Congress in July 2005 and signed into law by President George W. Bush (R) in August 2005. The act authorized the following:

  • Energy-related tax incentives totaling roughly $14.5 billion from 2005 to 2016, including $1.3 billion in tax incentives for energy efficiency and conservation, approximately $4.5 billion in incentives for renewable energy, $2.6 billion in incentives for oil and gas production and transmission, almost $3.0 billion for coal production, and around $3.0 billion in incentives for electricity generation and transmission
  • The Renewable Fuel Standard, a program mandating that transportation fuels contain a minimum amount of biofuel, such as ethanol
  • Increased oil and natural gas production, more electric transmission lines, and more gas pipelines on federally owned land

2007 Energy Independence and Security Act

The stated purpose of the Energy Independence and Security Act of 2007 is "to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the efficiency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the Federal Government, and for other purposes." The act was passed by the 110th United States Congress and signed into law by President George W. Bush (R). The act authorized the following:[7][8]

  • Average fuel economy standard of 35 miles per gallon for all passenger vehicles and light trucks by the 2020 model year
  • Energy efficiency standards for appliances, including external power supplies, residential clothes washers, dishwashers, dehumidifiers, refrigerators, freezers, and electric motors.
  • Increasing the federal Renewable Fuel Standard to require transportation fuel to contain 36 billion gallons of biofuels like ethanol by the year 2022

2009 American Recovery and Reinvestment Act

In the aftermath of the 2008 financial crisis, Congress passed the American Recovery and Reinvestment Act (also known as the stimulus bill) in 2009. The bill authorized $35.2 billion in federal funding to the U.S. Department of Energy for the following policy measures:[9][10][11]

  • Operational and energy measures to integrate renewable energy sources into the electric grid
  • Energy efficiency incentives for building owners
  • Support for the management and disposal of nuclear waste

Energy policy issues in 2015-2016

Congressional Research Service on energy policy issues (2016)

A September 2016 report by the Congressional Research Service outlined the energy policy legislation considered and/or passed by the 114th Congress during the 2015-2017 legislative session.[1]

Electricity transmissions lines

Comprehensive energy legislation: In April 2016, the U.S. Senate passed the Energy Policy and Modernization Act (S. 2012). In May 2016, the U.S. House passed S. 2012 with amendments, which contained the text of the North American Energy Security and Infrastructure Act of 2015, an energy bill that passed the House in December 2015. Both legislation included provisions on multiple energy policy topics, including the following:[1]

  • Energy efficiency in federal buildings, manufacturing centers, K-12 schools, and data centers
  • Electric grid cybersecurity
  • Water conservation and efficiency measures
  • A review of the Strategic Petroleum Reserve

The House-passed version of the bill included provisions addressing the physical security of the electric grid and a federal study of electricity markets. The Senate-passed bill contained provisions addressing helium resources, electric grid energy storage, and federal energy loan programs. The House and Senate did not reconcile and thus did not pass the bills during the 2015-2017 legislative session.[1]

Reversal of Clean Power Plan: In November and December of 2016, the House and Senate approved resolutions to repeal the Clean Power Plan, the Obama administration's climate change initiative to reduce carbon dioxide (CO2) emissions at power plants. In November 2015, the Senate passed a resolution by a vote of 52 to 46 to repeal the plan's provision mandating CO2 reductions at existing power plants. A second resolution to repeal CO2 reductions for newly built power plants passed by the same vote margin. The Senate held its vote under the Congressional Review Act of 1996, which allows Congress to repeal newly published federal regulations within 60 days of their finalization; the repeal must then be signed by the president. The Congressional Review act requires 51 votes rather than the 60 votes needed to pass other Senate legislation.[12][13][14]

In December 2015, the U.S. House of Representatives passed a resolution repealing the Clean Power Plan's provision mandating CO2 reductions from existing power plants by a vote of 242 to 180. In addition, the House passed a resolution repealing CO2 reductions for newly built power plants by a vote of 235 to 188.[15][16][17]

On December 19, 2015, President Barack Obama vetoed both resolutions.[18]

Repeal of crude oil export ban: Congress considered a repeal of the crude oil export ban, which was passed in 1975 to prohibit most crude oil exports from the United States to other countries. On September 10, 2015, the House Energy and Power Subcommittee approved a bill to allow crude oil exports. The U.S. House of Representatives voted on October 9, 2015, to lift the crude oil export ban. The 261-159 vote passed, though the measure stalled in the Senate. President Barack Obama (D) promised to veto the bill. The Consolidated Appropriations Act of 2016 (HR 2029) included a provision to end the export ban. It passed both houses of Congress and was signed by President Obama on December 18, 2015.[19][20][21][22][23][24]

Keystone XL pipeline: In early 2015, Congress passed legislation approving the Keystone XL pipeline, would transport crude oil extracted from tar sands in Alberta, Canada, and shale oil from North Dakota and Montana to Nebraska. President Obama vetoed the legislation in February 2015.[25]

Energy policy in the 50 states

Click on a state below to read more about that state's energy policy.

http://ballotpedia.org/Energy_policy_in_STATE

See also

External links

Footnotes

  1. ↑ 1.0 1.1 1.2 1.3 Congressional Research Service, "Energy Policy: 114th Congress Issues," September 2016
  2. ↑ U.S. Energy Information Administration, "Weekly U.S. Field Production of Crude Oil," June 30, 2016
  3. ↑ U.S. Energy Information Administration, "Natural Gas," June 30, 2016
  4. ↑ L.A. Times, "U.S. Electricity prices may be going up for good," April 25, 2014
  5. ↑ 5.0 5.1 5.2 5.3 5.4 Congressional Research Service, "Energy Policy: Historical Overview, Conceptual Framework, and Continuing Issues," December 21, 2004
  6. ↑ U.S. Department of State, "Milestones:1969-1976," October 31, 2013
  7. ↑ 7.0 7.1 Congressional Research Service, "Energy Policy Act of 2005: Summary and Analysis of Enacted Provisions," March 8, 2006 Cite error: Invalid <ref> tag; name "crsreport" defined multiple times with different content
  8. ↑ U.S. Environmental Protection Agency, "Summary of the Energy Independence and Security Act," accessed August 25, 2014
  9. ↑ U.S. Department of Energy, "Recovery Act," accessed June 12, 2014
  10. ↑ U.S. Department of Energy, "Department of Energy: Successes of the Recovery Act," January 2012
  11. ↑ U.S. Government Printing Office, "American Recovery and Reinvestment Act of 2009," January 6, 2009
  12. ↑ Washington Examiner, "Senate deals a blow to Obama climate rules," November 17, 2015
  13. ↑ The Hill, "Senate votes to strike down Obama’s climate rules," November 17, 2015
  14. ↑ The New York Times, "Senate Votes to Block Obama’s Climate Change Rules," November 17, 2015
  15. ↑ U.S. House Clerk, "Vote Results for S.J. Resolution 23," accessed December 3, 2015
  16. ↑ U.S. House Clerk, "Vote Results for S.J. Resolution 24," accessed December 3, 2015
  17. ↑ Think Progress, "The House Just Voted To Kill A Plan That Most Americans Support," December 2, 2015
  18. ↑ USA Today, "Using pocket vetoes, Obama rebuffs GOP attempt to kill Clean Power Plan," December 19, 2015
  19. ↑ The Guardian, "House votes to lift crude oil export ban despite opposition from White House," October 9, 2015
  20. ↑ Fox News, "House votes to lift 40-year-old ban on US crude oil exports," October 9, 2015
  21. ↑ U.S. News and World Report, "Bill to Reverse Ban on U.S. Oil Exports Advances in House," September 10, 2015
  22. ↑ The Washington Post, "The huge political horse trade in the budget that will change where the U.S. gets its energy," December 16, 2015
  23. ↑ The Hill, "Deal to end oil export ban in sight," December 10, 2015
  24. ↑ Library of Congress, "H.R.2029 - Consolidated Appropriations Act, 2016," accessed December 22, 2015
  25. ↑ Congressional Research Service, "Keystone XL Pipeline: Overview and Recent Developments," January 5, 2015
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