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Energy policy of the United States

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

Hoover Dam
US oil production, imports, & exports

Federal energy policy acts were passed in 1974, 1992, 2005, 2007, 2008, 2009,[1] 2020, 2021, and 2022, although energy-related policies have appeared in many other bills. State and local energy policies typically relate to efficiency standards and/or transportation.[2]

Federal energy policies since the 1973 oil crisis have been criticized over an alleged crisis-mentality, promoting expensive quick fixes and single-shot solutions that ignore market and technology realities.[3][4]

Americans constitute less than 5% of the world's population, but consume 26% of the world's energy[5] to produce 26% of the world's industrial output. Technologies such as fracking and horizontal drilling allowed the United States in 2014 to become the world's top oil fossil fuel producer.[6] In 2018, US exports of coal, natural gas, crude oil and petroleum products exceeded imports, achieving a degree of energy independence for the first time in decades.[7][8][9] In the second half of 2019, the US was the world's top producer of oil and gas.[10] This energy surplus ended in 2020.[11][12]

Various multinational groups have attempted to establish goals and timetables for energy and other climate-related policies, such as the 1997 Kyoto Protocol, and the 2015 Paris Agreement.

History edit

 
US energy use (values in quad/year, each equal to 290 TWh/year)
 
US oil reserves increased until 1970, then began to decline.
 
Grand Coulee Dam in Washington State.

In the early days of the Republic energy policy allowed free use of standing timber for heating and industry. Wind and water provided energy for tasks such as milling grain. In the 19th century, coal became widely used. Whales were rendered into lamp oil.[13] Coal gas was fractionated for use as lighting and town gas. Natural gas was first used in America for lighting in 1816.[14] It has grown in importance, especially for electricity generation, but US natural gas production peaked in 1973[15] and the price has risen significantly since then.

Coal provided the bulk of the US energy needs well into the 20th century. Most urban homes had a coal bin and a coal-fired furnace. Over the years these were replaced with oil furnaces that were easier and safer to operate.[16]

From the early 1940s, the US government and oil industry entered into a mutually beneficial collaboration to control global oil resources.[17] By 1950, oil consumption exceeded that of coal.[18][19] Abundant oil in California, Texas, Oklahoma, as well as in Canada and Mexico, coupled with its low cost, ease of transportation, high energy density, and use in internal combustion engines, led to its increasing use.[20]

Following World War II, oil heating boilers took over from coal burners along the Eastern Seaboard; diesel locomotives took over from coal-fired steam engines; oil-fired power plants dominated; petroleum-burning buses replaced electric streetcars, and citizens bought gasoline-powered cars. Interstate Highways helped make cars the major means of personal transportation.[20] As oil imports increased, US foreign policy was drawn into Middle East politics, seeking to maintain steady supply via actions such as protecting Persian Gulf sea lanes.[21]

Hydroelectricity was the basis of Nikola Tesla's introduction of the US electricity grid, starting at Niagara Falls, New York, in 1883.[22] Electricity generated by major dams such as the TVA Project, Grand Coulee Dam and Hoover Dam still produce some of the lowest-priced ($0.08/kWh) electricity. Rural electrification strung power lines to many more areas.[13][23]

A National Maximum Speed Limit of 55 mph (88 km/h) was imposed in 1974 (and repealed in 1995) to help reduce consumption. Corporate Average Fuel Economy (aka CAFE) standards were enacted in 1975 and progressively tightened over time to compel manufacturers to improve vehicle mileage.[24] Year-round Daylight Saving Time was imposed in 1974 and repealed in 1975. The United States Strategic Petroleum Reserve was created in 1975.

The Weatherization Assistance Program[25] was enacted in 1977. On average, low-cost weatherization reduces heating bills by 31% and overall energy bills by $358 per year at 2012 prices. Increased energy efficiency and weatherization spending has a high return on investment.[26]

On August 4, 1977, President Jimmy Carter signed into law The Department of Energy Organization Act of 1977 (Pub. L.Tooltip Public Law (United States) 95–91, 91 Stat. 565, enacted August 4, 1977), which created the United States Department of Energy (DOE).[27] The new agency, which began operations on October 1, 1977, consolidated the Federal Energy Administration, the Energy Research and Development Administration, the Federal Power Commission, and programs of various other agencies. Former Secretary of Defense James Schlesinger, who served under Presidents Nixon and Ford during the Vietnam War, was appointed as the first secretary.

On June 30, 1980, Congress passed the Energy Security Act, which reauthorized the Defense Production Act of 1950 and enabled it to cover domestic energy supplies. It also obligated the federal government to promote and reform the Strategic Petroleum Reserve, biofuels, geothermal power, acid rain prevention, solar power, and synthetic fuel commercialization.[28] The Defense Production Act was further reauthorized in 2009, with modifications requiring the federal government to promote renewable energy, energy efficiency, and improved grid and grid storage installations with its defense procurements.[29][30]

The federal government provided substantially larger subsidies to fossil fuels than to renewables in the 2002–2008 period. Subsidies to fossil fuels totaled approximately $72 billion over the study period, a direct cost to taxpayers. Subsidies for renewable fuels, totaled $29 billion over the same period.[31]

In some cases, the US used energy policy to pursue other international goals. Richard Heinberg claimed that a declassified CIA document showed that the US used oil prices as leverage against the economy of the Soviet Union by working with Saudi Arabia during the Reagan administration to keep oil prices low, thus decreasing the value of the USSR's petroleum export industry.[32]

The 2005 Energy Policy Act (EPA) addressed (1) energy efficiency; (2) renewable energy; (3) oil and gas; (4) coal; (5) tribal energy; (6) nuclear matters; (7) vehicles and motor fuels, including ethanol; (8) hydrogen; (9) electricity; (10) energy tax incentives; (11) hydropower and geothermal energy; and (12) climate change technology.[33] The Act also started the Department of Energy's Loan Guarantee Program.[34]

The Energy Independence and Security Act of 2007 provided funding to help improve building codes, and outlawed the sale of incandescent light bulbs, in favor of fluorescents and LEDs.[1] It also includes funding to increase photovoltaics, and a solar air conditioning program, created the Energy Efficiency and Conservation Block Grant, and set the CAFE standard to 35 mpg by 2020.

In February 2009, the American Recovery and Reinvestment Act was passed, with an initial projection of $45 billion in funding levels going to energy. $11 billion went to the Weatherization Assistance Program, the Energy Efficiency and Conservation Block Grant, and the State Energy Program, $11 billion went to federal buildings and vehicles, $8 billion went to research and development programs, $2.4 billion went to new technology and facility development projects, $14 billion went to the electric grid, and $21 billion was projected to go to tax credits for renewable energy and electric vehicles, among others.[35] Due in part to the design of the tax credits, the final amount of energy spending and incentives reached over $90 billion, funded 180 advanced manufacturing projects, and created more than 900,000 job-years.[36]

In December 2009, the United States Patent and Trademark Office announced the Green Patent Pilot Program.[37] The program was initiated to accelerate the examination of patent applications relating to certain green technologies, including the energy sector.[38] The pilot program was initially designed to accommodate 3,000 applications related to certain green technology categories, and the program was originally set to expire on December 8, 2010. In May 2010, the USPTO announced that it would expand the pilot program.[39]

In 2016, federal government energy-specific subsidies and support for renewables, fossil fuels, and nuclear energy amounted to $6,682 million, $489 million and $365 million, respectively.[40]

On June 1, 2017, then-President Donald Trump announced that the U.S. would cease participation in the 2015 Paris Agreement on climate change mitigation agreed to under the President Barack Obama administration.[41] On November 3, 2020, incoming President Joe Biden announced that the U.S. would resume its participation.[42]

The Energy Information Administration (EIA) predicted that the reduction in energy consumption in 2020 due to the COVID-19 pandemic would take many years to recover.[43] The US imported much of its oil for many decades but in 2020 became a net exporter.[44]

In December 2020, Trump signed the Consolidated Appropriations Act, 2021, which contained the Energy Act of 2020, the first major revision package to U.S. energy policy in over a decade. The bill contains increased incentives for energy efficiency particularly in federal government buildings, improved funding for weatherization assistance, standards to phase out the use of hydrofluorocarbons, plans to rebuild the nation's energy research sector including fossil fuel research, and $7 billion in demonstration projects for carbon capture and storage.[45][46][47]

Under President Joe Biden, one-third of the Strategic Petroleum Reserve was tapped to reduce energy prices during the COVID-19 pandemic.[48] He also invoked the Defense Production Act to boost manufacturing of solar cells and other renewable energy generators, fuel cells and other electricity-dependent clean fuel equipment, building insulation, heat pumps, critical power grid infrastructure, and electric vehicle batteries.[49][50]

Biden also signed the Infrastructure Investment and Jobs Act to invest $73 billion in the energy sector.[51] $11 billion of that amount will be invested in power grid infrastructure, with the first selected recipients for $3.46 billion of the funds announced in October 2023, the largest such investment in the grid since the Recovery Act.[52] (In November 2022 the Biden administration announced $550 million would be distributed from a grant program for clean energy generators for low-income and minority communities, created by the 2007 Energy Independence and Security Act and last funded by the Recovery Act.[53][54]) $6 billion of the former amount will go to domestic nuclear power. From the $73 billion, the IIJA invests $45 billion in innovation and industrial policy for key emerging technologies in energy; $430 million[55]–21 billion in new demonstration projects at the DOE; and nearly $24 billion in onshoring, supply chain resilience, and bolstering competitive advantages in energy, divided into an $8.6 billion investment in carbon capture and storage, $3 billion in battery material reprocessing, $3 billion in battery recycling, $1 billion in rare-earth minerals stockpiling, and $8 billion in new research hubs for green hydrogen.[56] $4.7 billion will go to plugging orphan wells abandoned by oil and gas companies.[57][58][59]

In August 2022, Biden signed the CHIPS and Science Act to boost DOE and National Science Foundation research activities by $174 billion[60] and the Inflation Reduction Act to create assistance programs for utility cooperatives[61] and a $27 billion green bank,[62] including $6 billion to lower the cost of solar power in low-income communities and $7 billion to capitalize smaller green banks,[63] and appropriate $270–663 billion in clean energy and energy efficiency tax credits,[64][65][66] including at least $158 billion for investments in clean energy, and $36 billion for home energy upgrades from public utilities.[67][68][69] The Biden administration itself claimed that as of November 2023, the IIJA, CaSA, and IRA together catalyzed over $614 billion in private investment (including $231 billion in electronics, $142 billion in electric vehicles and batteries, and $133 billion in clean energy generators) and over $302.4 billion in public infrastructure spending (including $22.7 billion in energy aside from tax credits in the IRA).[70][needs update]

Department of Energy edit

The Energy Department's mission statement is "to ensure America's security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions."[71]

As of January 2023, its elaboration of the mission statement is as follows:

  • "Catalyze timely, material, and efficient transformation of the nation's energy system and secure US leadership in clean energy technologies.
  • "Maintain a vibrant US effort in science and engineering as a cornerstone of our economic prosperity with clear leadership in strategic areas.
  • "Enhance nuclear security through defense, nonproliferation, and environmental efforts.
  • "Establish an operational and adaptable framework that combines the best wisdom of all Department stakeholders to maximize mission success."[71]

Import policies edit

 
The trend of net energy imports into the United States (US Energy Information Administration).

Petroleum edit

 
United States oil product imports by country

The US bans energy imports from countries such as Russia (because of the Russo-Ukrainian War),[72] and Venezuela.[73] The US limits exports of oil from Iran.[74] The US imports energy from multiple countries, led by Canada, although it is a net exporter.

Export edit

In 1975, the United States implemented a crude oil export ban, which limited most of the crude oil exports to other countries. It came two years after an OPEC oil embargo that banned oil sales to the U.S. had sent gas prices skyrocketing. Newspaper photographs of long lines of cars outside of gas stations became a common and worrisome image.[75]Congress voted in 2015 to repeal a 40-year ban on exporting U.S. crude oil. Since that year, crude exports have skyrocketed nearly 600% to 3.2 million barrels per day in 2020, according to data from the U.S. Energy Information Administration.[76]

Strategic petroleum reserve edit

The United States Strategic Petroleum Reserve stores as much as 600M barrels of oil.[48][needs update]

Energy consumption edit

 
Consumption by sector
    
An example of each consumption sector: a refinery, a house, a car and an office

Industry has long been the country's largest energy sector.[77][78] It used 33% of total energy in 2021, most of which was divided evenly between natural gas, electricity and petroleum. A survey from 2018 estimated that the largest energy users were the chemical industry (30%), petroleum and coal processing (18%), mining (9%) and paper (9%).[79] The most energy-intensive industry was by far petroleum and coal, at over 30 billion BTU per employee. The paper industry was second at 6.5 billion BTU per employee. Each of these handles energy sources as part of their raw materials (fossil fuels and wood).[80] The same survey found that half of the electric use was to drive machines, and about 10% each for heating, cooling and electro-chemical processes. Most of the remainder was for factory lighting and HVAC. About half of the natural gas was for process heating, and most of the rest was for boilers.[81]

Transportation used 28% of energy, almost all of which was petroleum and other fuels. Half of the combustible fuels that make up the transportation sector were gasoline, and half of the vehicle usage was for cars and small trucks.[82] Diesel and heavier trucks each made up about a quarter of their respective categories; jet fuel and aircraft were about a tenth each. Biofuels such as ethanol and biodiesel made up 5%, while natural gas was 4%. Electricity from mass transit was 0.2%; electricity for light passenger vehicles is counted in other sectors, but figures from the US Department of Energy estimate that 2.1 million electric vehicles used 6.1 TWh to travel 19 billion miles, indicating an average fuel efficiency of 3.1 miles per kWh.[83]

Over two-thirds of the energy used by homes, offices, and other commercial businesses is electric, including electric losses.[84][85] Most of the energy used in homes was for space heating (34%) and water heating (19%), much more than the amount used for space cooling (16%) and refrigeration (7%).[86] Businesses use similar percentages for space cooling and refrigeration. They use less for space and water heating, but more for lighting and cooking.[87]

Most homes in the US are single-family detached,[88] which on average use almost triple the energy of apartments in larger buildings.[89] However, single family households have 50% more persons and triple the floor space. Usage per square foot of living space is roughly equal for most housing types except small apartment buildings and mobile homes. Small apartments are more likely to be older than other housing types,[90] while mobile homes tend to have poor insulation.[91]

Sources edit

 
An offshore oil platform

Energy in the United States came mostly from fossil fuels in 2021: 36% originated from petroleum, 32% from natural gas, and 11% from coal.[92] Renewable energy supplied the rest: hydropower, biomass, wind, geothermal, and solar supplied 12%, while nuclear supplied 8%.[92]

100.2 Quad: The primary sources of US energy in 2019.[93]
 Coal in IndiaHydroelectric power in IndiaGeothermal: 0.209Quad (0.2%)Wind Power: 2.74Quad (2.7%)Solar power in IndiaBiomass: 4.98Quad (5.0%)Nuclear power in IndiaNatural Gas: 32.1Quad (32.1%)Oil: 36.7Quad (36.7%)
  •   Coal: 11.4Quad (11.4%)
  •   Hydro: 2.5Quad (2.5%)
  •   Geothermal: 0.209Quad (0.2%)
  •   Wind Power: 2.74Quad (2.7%)
  •   Solar: 1.04Quad (1.0%)
  •   Biomass: 4.98Quad (5.0%)
  •   Nuclear: 8.46Quad (8.4%)
  •   Natural Gas: 32.1Quad (32.1%)
  •   Oil: 36.7Quad (36.7%)

Utilities edit

In the U.S., utilities are regulated at the federal level by the Federal Energy Regulatory Commission. in each state, a public utility commission (PUC) regulates electricity, gas, and other forms of power.[94]

States began deregulating electricity systems in the 1990s as a way to promote competition and lower costs. Transmission lines and distribution services are still provided by local utility companies. Wholesale markets were created to determine power plant investments and allow utilities to acquire power for customers. Those wholesale markets are operated by regional transmission organizations (RTOs).[95]

Deregulation led to the creation of independent energy suppliers and allowed customers to choose their electric supplier.

Energy efficiency edit

Opportunities for increased energy are available across the economy, including buildings/appliances, transportation, and manufacturing. Some opportunities require new technology. Others require behavior change by individuals or at the community level or above.

Building-related energy efficiency innovation takes many forms, including improvements in water heaters; refrigerators and freezers; building control technologies heating, ventilation, and cooling (HVAC); adaptive windows; building codes; and lighting.[96]

Energy-efficient technologies may allow superior performance (e.g. higher quality lighting, heating and cooling with greater controls, or improved reliability of service through greater ability of utilities to respond to time of peak demand).[96]

More efficient vehicles save on fuel purchases, emit fewer pollutants, improve health and save on medical costs.[96]

Heat engines are only 20% efficient at converting oil into work.[97][98]

Energy budget, initiatives and incentives edit

Most energy policy incentives are financial. Examples of these include tax breaks, tax reductions, tax exemptions, rebates, loans and subsidies.

The Energy Policy Act of 2005, Energy Independence and Security Act of 2007, Emergency Economic Stabilization Act of 2008, and the Inflation Reduction Act all provided such incentives.

Tax incentives edit

The US Production Tax Credit (PTC) reduces the federal income taxes of qualified owners of renewable energy projects based on grid-connected output. The Investment Tax Credit (ITC) reduces federal income taxes for qualified tax-payers based on capital investment in renewable energy projects. The Advanced Energy Manufacturing Tax Credit (MTC) awards tax credits to selected domestic manufacturing facilities that support clean energy development.[99]

Loan guarantees edit

The Department of Energy's Loan Guarantee Program guarantees financing up to 80% of a qualifying project's cost.[34]

Renewable energy edit

 
The Shepherds Flat Wind Farm is an 845 megawatt (MW) wind farm in the U.S. state of Oregon.
 
The 550 MW Desert Sunlight Solar Farm in California
 
The 392 MW Ivanpah Solar Power Facility in California: The facility's three towers
 
Parabolic trough power station for electricity production, near the town of Kramer Junction in California's San Joaquin Valley
 
Tesla Roadster (2008) uses lithium ion batteries to achieve 220 mi (350 km) per charge, while also capable of going 0–60 in under 4 seconds.

In the United States, the share of renewable energy in electricity generation has grown to 21% (2020).[100] Oil use is expected to decline in the US owing to the increasing efficiency of the vehicle fleet and replacement of crude oil by natural gas as a feedstock for the petrochemical sector. One forecast is that the rapid uptake of electric vehicles will reduce oil demand drastically, to the point where it is 80% lower in 2050 compared with today.[101]

A Renewable Portfolio Standard (RPS) is a state/local mandate that requires electricity providers to supply a minimum amount of power from renewable sources, usually defined as a percentage of total energy production.[102]

Biofuels edit

The federal government offers many programs to support the development and implementation of biofuel-based replacements for fossil fuels.[103]

Landowners and operators who establish, produce, and deliver biofuel crops may qualify for partial reimbursement of startup costs as well as annual payments.[103]

Loan guarantees help finance development, construction, and retrofitting of commercial-scale biorefineries. Grants aid building demonstration scale biorefineries and scaling up of existing biorfineries. Loan guarantees and grants support the purchase of pumps that dispense ethanol-including fuels.[103]

Production support helps makers expand output.[103]

Tax credits support the purchase of fueling equipment (gas pumps) for specific fuels including some biofuels.[103]

Education grants support training the public about biodiesel.[103]

Research, development, and demonstration grants support feedstock development and biofuel development.[103]

Grants support research, demonstration, and deployment projects to replace buses and other petroleum-fueled vehicles with biofuel or other alternative fuel-based vehicles including necessary fueling infrastructure.[103]

Producer subsidies edit

The 2005 Energy Policy Act offered incentives including billions in tax reductions for nuclear power, fossil fuel production, clean coal technologies, renewable electricity, and conservation and efficiency improvements.[104]

Federal leases edit

The US leases federal land to private firms for energy production. The volume of leases has varied by presidential administration. During the first 19 months of the Joe Biden administration, 130k acres were leased, compared to 4M under the Donald Trump administration, 7M under the Obama administration, and 13M under the George W. Bush administration.[105]

Net metering edit

 
Growth of net metering in the United States

Net metering is a policy by many states in the United States designed to help the adoption of renewable energy. Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona in 1981.[106] In 1983, Minnesota passed the first state net metering law.[107] As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities.[108] However, although the states' rules are clear, few utilities actually compensate at full retail rates.[109]

Net metering policies are determined by states, which have set policies varying on a number of key dimensions. The Energy Policy Act of 2005 required state electricity regulators to "consider" (but not necessarily implement) rules that mandate public electric utilities make net metering available to their customers upon request.[110] Several legislative bills have been proposed to institute a federal standard limit on net metering. They range from H.R. 729, which sets a net metering cap at 2% of forecasted aggregate customer peak demand, to H.R. 1945, which has no aggregate cap, but does limit residential users to 10 kW, a low limit compared to many states, such as New Mexico, with an 80,000 kW limit, or states such as Arizona, Colorado, New Jersey, and Ohio, which limit as a percentage of load.[111]

Electricity transmission and distribution edit

 
The US power transmission grid consists of about 300,000 km (190,000 mi) of lines operated by approximately 500 companies. The North American Electric Reliability Corporation (NERC) oversees all of them.

Electric power transmission results in energy loss, through electrical resistance, heat generation, electromagnetic induction and less-than-perfect electrical insulation.[112] Electric transmission (production to consumer) loses over 23% of the energy due to generation, transmission, and distribution.[113] In 1995, long distance transission losses were estimated at 7.2% of the power transported.[114] Reducing transmission distances reduces these losses. Of five units of energy going into typical large fossil fuel power plants, only about one unit reaches the consumer in a usable form.[115]

A similar situation exists in natural gas transport, which requires compressor stations along pipelines that use energy to keep the gas moving. Gas liquefaction/cooling/regasification in the liquified natural gas supply chain uses a substantial amount of energy.

Distributed generation and distributed storage are a means of reducing total and transmission losses as well as reducing costs for electricity consumers.[116][117][118]

In October 2023, the Biden administration announced the largest major investments in the grid since the Recovery Act in 2009.[119][120] The DOE announced the results of a mandated triennial study that, for the first time in its history, included anticipation of future grid transmission needs. The DOE also announced the first three recipients of a new $2.5 billion loan program it called the Transmission Facilitation Program, created to provide funding to help build up the interstate power grid. They are the 1.2-gigawatt Twin States Clean Energy Link between Quebec, New Hampshire and Vermont, the 1.5-gigawatt Cross-Tie Transmission Line between Utah and Nevada; and the 1-gigawatt Southline Transmission Project between Arizona and New Mexico.[121]

The Federal Energy Regulatory Commission (FERC) is the primary regulatory agency of electric power transmission and wholesale electricity sales within the United States. FERC was originally established by Congress in 1920 as the Federal Power Commission and has since undergone multiple name and responsibility modifications. Electric power distribution and the retail sale of power is under state jurisdiction.

Order No. 888 edit

Order No. 888 was adopted by FERC on April 24, 1996. It was "designed to remove impediments to competition in the wholesale bulk power marketplace and to bring more efficient, lower cost power to the Nation's electricity consumers. The legal and policy cornerstone of these rules is to remedy undue discrimination in access to the monopoly owned transmission wires that control whether and to whom electricity can be transported in interstate commerce."[122] The Order required all public utilities that own, control, or operate facilities used for transmitting electric energy in interstate commerce, to have open access, non-discriminatory transmission tariffs. These tariffs allow any electricity generator to utilize existing power lines to transmit the power that they generate. The Order also permits public utilities to recover the costs associated with providing their power lines as an open access service.[122][123]

Energy Policy Act of 2005 edit

The Energy Policy Act of 2005 (EPAct) expanded federal authority to regulate power transmission. EPAct gave FERC significant new responsibilities, including enforcement of electric transmission reliability standards and the establishment of rate incentives to encourage investment in electricity transmission.[124]

Historically, local governments exercised authority over the grid and maintained significant disincentives to actions that would benefit states other than their own. Localities with cheap electricity have a disincentive to encourage making interstate commerce in electricity trading easier, since other regions would be able to compete for that energy and drive up rates. For example, some regulators in Maine refused to address congestion problems because the congestion protects Maine rates.[125]

Local constituencies can block or slow permitting by pointing to visual impacts, environmental, and health concerns. In the US, generation is growing four times faster than transmission, but transmission upgrades require the coordination of multiple jurisdictions, complex permitting, and cooperation between a significant portion of the many companies that collectively own the grid. The US national security interest in improving transmission was reflected in the EPAct which gave the Department of Energy the authority to approve transmission if states refused to act.[126]

2022 Inflation Reduction Act edit

The Inflation Reduction Act of the Biden administration has fast-tracked transmission projects by helping purchase $30 billion in wholesale electric transmission contracts, as well as publishing a national transmission needs report, which had been expanded in scope by the Infrastructure Investment and Jobs Act.[127]

The U.S. transmission grid capacity would have to triple in order to meet the global target of net zero carbon emissions according to a Princeton University study.[128][129]

Greenhouse gas emissions edit

 
Though China has the greatest total annual carbon dioxide emissions, the U.S. exceeds China in per capita emissions.[130]
 
CO2 emission per capita per year per country

While the United States has cumulatively emitted the most greenhouse gases of any country, it represents a declining fraction of ongoing emissions, long superseded by China.[131][132] Since its peak in 1973, per capita US emissions have declined by 40%, resulting from improved technology, the shift in economic activity from manufacturing to services, changing consumer preferences and government policy.[133]

State and local government have launched initiatives. Cities in 50 states endorsed the Kyoto protocol.[134] Northeastern US states established the Regional Greenhouse Gas Initiative (RGGI),[135] a state-level emissions cap and trade program.

On February 16, 2007, the United States, together with leaders from Canada, France, Germany, Italy, Japan, Russia, United Kingdom, Brazil, China, India, Mexico and South Africa agreed in principle on the outline of a successor to the Kyoto Protocol known as the Washington Declaration. They envisaged a global cap-and-trade system that would apply to both industrialized nations and developing countries.[136][137] The system did not come to pass.

Arjun Makhijani argued that in order to limit global warming to 2 °C, the world would need to reduce CO2 emissions by 85% and the US by 95%.[138][139][140] He developed a model by which such changes could occur. Effective delivered energy is modeled to increase from about 75 Quadrillion Btu in 2005 to about 125 Quadrillion in 2050,[141] but due to efficiency increases, the actual energy input increases from about 99 Quadrillion Btu in 2005 to about 103 Quadrillion in 2010 and then to decrease to about 77 Quadrillion in 2050.[142] Petroleum use is assumed to increase until 2010 and then linearly decrease to zero by 2050. The roadmap calls for nuclear power to decrease to zero, with the reduction also beginning in 2010.[143]

Joseph Romm called for the rapid deployment of existing technologies to decrease carbon emissions. He argued that "If we are to have confidence in our ability to stabilize carbon dioxide levels below 450 p.p.m. emissions must average less than [5 billion metric tons of carbon] per year over the century. This means accelerating the deployment of the 11 wedges so they begin to take effect in 2015 and are completely operational in much less time than originally modeled by Socolow and Pacala."[144]

In 2012, the National Renewable Energy Laboratory assessed the technical potential for renewable electricity for each of the 50 states, and concluded that each state had the technical potential for renewable electricity, mostly from solar and wind, that could exceed its current electricity consumption. The report cautions: "Note that as a technical potential, rather than economic or market potential, these estimates do not consider availability of transmission infrastructure, costs, reliability or time-of-dispatch, current or future electricity loads, or relevant policies."[145]

In 2022, the EPA received funding for a green bank called the Greenhouse Gas Reduction Fund to drive down carbon dioxide emissions, as part of the Inflation Reduction Act, the largest decarbonization incentives package in U.S. history.[62][63] The Fund will award $14 billion to a select few green banks nationwide for a broad variety of decarbonization investments, $6 billion to green banks in low-income and historically disadvantaged communities for similar investments, and $7 billion to state and local energy funds for decentralized solar power in communities with no financing alternatives.[146][147] The EPA set the deadline to apply for the first two award initiatives at October 12, 2023[148] and the latter initiative at September 26, 2023.[149]

See also edit

References edit

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Further reading edit

  • Matto Mildenberger & Leah C. Stokes (2021). "The Energy Politics of North America". The Oxford Handbook of Energy Politics.
  • Oil and Natural Gas Industry Tax Issues in the FY2014 Budget Proposal Congressional Research Service

External links edit

  • US Department of Energy
  • Energy Information Administration
    • Residential Electricity Prices
  • United States Energy Association (USEA)
  • US energy stats
  • Database of U.S. International Energy Agreements
  • Retail sales of electricity and associated revenue by end-use sectors through June 2007 (Energy Information Administration)
  • International Energy Agency 2007 Review of US Energy Policies

energy, policy, united, states, energy, policy, united, states, determined, federal, state, local, entities, addresses, issues, energy, production, distribution, consumption, modes, such, building, codes, mileage, standards, commuting, policies, energy, policy. The energy policy of the United States is determined by federal state and local entities It addresses issues of energy production distribution consumption and modes of use such as building codes mileage standards and commuting policies Energy policy may be addressed via legislation regulation court decisions public participation and other techniques Hoover Dam US oil production imports amp exports This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Energy policy of the United States news newspapers books scholar JSTOR October 2022 Learn how and when to remove this message This article needs to be updated The reason given is future statements in lead referring to past years and lack of coverage of recent energy issues the IRA and other new Biden signed acts Please help update this article to reflect recent events or newly available information June 2022 This article may require copy editing for grammar style cohesion tone or spelling You can assist by editing it March 2023 Learn how and when to remove this message Learn how and when to remove this message Federal energy policy acts were passed in 1974 1992 2005 2007 2008 2009 1 2020 2021 and 2022 although energy related policies have appeared in many other bills State and local energy policies typically relate to efficiency standards and or transportation 2 Federal energy policies since the 1973 oil crisis have been criticized over an alleged crisis mentality promoting expensive quick fixes and single shot solutions that ignore market and technology realities 3 4 Americans constitute less than 5 of the world s population but consume 26 of the world s energy 5 to produce 26 of the world s industrial output Technologies such as fracking and horizontal drilling allowed the United States in 2014 to become the world s top oil fossil fuel producer 6 In 2018 US exports of coal natural gas crude oil and petroleum products exceeded imports achieving a degree of energy independence for the first time in decades 7 8 9 In the second half of 2019 the US was the world s top producer of oil and gas 10 This energy surplus ended in 2020 11 12 Various multinational groups have attempted to establish goals and timetables for energy and other climate related policies such as the 1997 Kyoto Protocol and the 2015 Paris Agreement Contents 1 History 2 Department of Energy 3 Import policies 3 1 Petroleum 4 Export 5 Strategic petroleum reserve 6 Energy consumption 7 Sources 8 Utilities 9 Energy efficiency 10 Energy budget initiatives and incentives 10 1 Tax incentives 10 2 Loan guarantees 10 3 Renewable energy 10 4 Biofuels 10 5 Producer subsidies 10 6 Federal leases 10 7 Net metering 11 Electricity transmission and distribution 11 1 Order No 888 11 2 Energy Policy Act of 2005 11 3 2022 Inflation Reduction Act 12 Greenhouse gas emissions 13 See also 14 References 15 Further reading 16 External linksHistory editSee also History of the petroleum industry in the United States and History of coal mining in the United States nbsp US energy use values in quad year each equal to 290 TWh year nbsp US oil reserves increased until 1970 then began to decline nbsp Grand Coulee Dam in Washington State In the early days of the Republic energy policy allowed free use of standing timber for heating and industry Wind and water provided energy for tasks such as milling grain In the 19th century coal became widely used Whales were rendered into lamp oil 13 Coal gas was fractionated for use as lighting and town gas Natural gas was first used in America for lighting in 1816 14 It has grown in importance especially for electricity generation but US natural gas production peaked in 1973 15 and the price has risen significantly since then Coal provided the bulk of the US energy needs well into the 20th century Most urban homes had a coal bin and a coal fired furnace Over the years these were replaced with oil furnaces that were easier and safer to operate 16 From the early 1940s the US government and oil industry entered into a mutually beneficial collaboration to control global oil resources 17 By 1950 oil consumption exceeded that of coal 18 19 Abundant oil in California Texas Oklahoma as well as in Canada and Mexico coupled with its low cost ease of transportation high energy density and use in internal combustion engines led to its increasing use 20 Following World War II oil heating boilers took over from coal burners along the Eastern Seaboard diesel locomotives took over from coal fired steam engines oil fired power plants dominated petroleum burning buses replaced electric streetcars and citizens bought gasoline powered cars Interstate Highways helped make cars the major means of personal transportation 20 As oil imports increased US foreign policy was drawn into Middle East politics seeking to maintain steady supply via actions such as protecting Persian Gulf sea lanes 21 Hydroelectricity was the basis of Nikola Tesla s introduction of the US electricity grid starting at Niagara Falls New York in 1883 22 Electricity generated by major dams such as the TVA Project Grand Coulee Dam and Hoover Dam still produce some of the lowest priced 0 08 kWh electricity Rural electrification strung power lines to many more areas 13 23 A National Maximum Speed Limit of 55 mph 88 km h was imposed in 1974 and repealed in 1995 to help reduce consumption Corporate Average Fuel Economy aka CAFE standards were enacted in 1975 and progressively tightened over time to compel manufacturers to improve vehicle mileage 24 Year round Daylight Saving Time was imposed in 1974 and repealed in 1975 The United States Strategic Petroleum Reserve was created in 1975 The Weatherization Assistance Program 25 was enacted in 1977 On average low cost weatherization reduces heating bills by 31 and overall energy bills by 358 per year at 2012 prices Increased energy efficiency and weatherization spending has a high return on investment 26 On August 4 1977 President Jimmy Carter signed into law The Department of Energy Organization Act of 1977 Pub L Tooltip Public Law United States 95 91 91 Stat 565 enacted August 4 1977 which created the United States Department of Energy DOE 27 The new agency which began operations on October 1 1977 consolidated the Federal Energy Administration the Energy Research and Development Administration the Federal Power Commission and programs of various other agencies Former Secretary of Defense James Schlesinger who served under Presidents Nixon and Ford during the Vietnam War was appointed as the first secretary On June 30 1980 Congress passed the Energy Security Act which reauthorized the Defense Production Act of 1950 and enabled it to cover domestic energy supplies It also obligated the federal government to promote and reform the Strategic Petroleum Reserve biofuels geothermal power acid rain prevention solar power and synthetic fuel commercialization 28 The Defense Production Act was further reauthorized in 2009 with modifications requiring the federal government to promote renewable energy energy efficiency and improved grid and grid storage installations with its defense procurements 29 30 The federal government provided substantially larger subsidies to fossil fuels than to renewables in the 2002 2008 period Subsidies to fossil fuels totaled approximately 72 billion over the study period a direct cost to taxpayers Subsidies for renewable fuels totaled 29 billion over the same period 31 In some cases the US used energy policy to pursue other international goals Richard Heinberg claimed that a declassified CIA document showed that the US used oil prices as leverage against the economy of the Soviet Union by working with Saudi Arabia during the Reagan administration to keep oil prices low thus decreasing the value of the USSR s petroleum export industry 32 The 2005 Energy Policy Act EPA addressed 1 energy efficiency 2 renewable energy 3 oil and gas 4 coal 5 tribal energy 6 nuclear matters 7 vehicles and motor fuels including ethanol 8 hydrogen 9 electricity 10 energy tax incentives 11 hydropower and geothermal energy and 12 climate change technology 33 The Act also started the Department of Energy s Loan Guarantee Program 34 The Energy Independence and Security Act of 2007 provided funding to help improve building codes and outlawed the sale of incandescent light bulbs in favor of fluorescents and LEDs 1 It also includes funding to increase photovoltaics and a solar air conditioning program created the Energy Efficiency and Conservation Block Grant and set the CAFE standard to 35 mpg by 2020 In February 2009 the American Recovery and Reinvestment Act was passed with an initial projection of 45 billion in funding levels going to energy 11 billion went to the Weatherization Assistance Program the Energy Efficiency and Conservation Block Grant and the State Energy Program 11 billion went to federal buildings and vehicles 8 billion went to research and development programs 2 4 billion went to new technology and facility development projects 14 billion went to the electric grid and 21 billion was projected to go to tax credits for renewable energy and electric vehicles among others 35 Due in part to the design of the tax credits the final amount of energy spending and incentives reached over 90 billion funded 180 advanced manufacturing projects and created more than 900 000 job years 36 In December 2009 the United States Patent and Trademark Office announced the Green Patent Pilot Program 37 The program was initiated to accelerate the examination of patent applications relating to certain green technologies including the energy sector 38 The pilot program was initially designed to accommodate 3 000 applications related to certain green technology categories and the program was originally set to expire on December 8 2010 In May 2010 the USPTO announced that it would expand the pilot program 39 In 2016 federal government energy specific subsidies and support for renewables fossil fuels and nuclear energy amounted to 6 682 million 489 million and 365 million respectively 40 On June 1 2017 then President Donald Trump announced that the U S would cease participation in the 2015 Paris Agreement on climate change mitigation agreed to under the President Barack Obama administration 41 On November 3 2020 incoming President Joe Biden announced that the U S would resume its participation 42 The Energy Information Administration EIA predicted that the reduction in energy consumption in 2020 due to the COVID 19 pandemic would take many years to recover 43 The US imported much of its oil for many decades but in 2020 became a net exporter 44 In December 2020 Trump signed the Consolidated Appropriations Act 2021 which contained the Energy Act of 2020 the first major revision package to U S energy policy in over a decade The bill contains increased incentives for energy efficiency particularly in federal government buildings improved funding for weatherization assistance standards to phase out the use of hydrofluorocarbons plans to rebuild the nation s energy research sector including fossil fuel research and 7 billion in demonstration projects for carbon capture and storage 45 46 47 Under President Joe Biden one third of the Strategic Petroleum Reserve was tapped to reduce energy prices during the COVID 19 pandemic 48 He also invoked the Defense Production Act to boost manufacturing of solar cells and other renewable energy generators fuel cells and other electricity dependent clean fuel equipment building insulation heat pumps critical power grid infrastructure and electric vehicle batteries 49 50 Biden also signed the Infrastructure Investment and Jobs Act to invest 73 billion in the energy sector 51 11 billion of that amount will be invested in power grid infrastructure with the first selected recipients for 3 46 billion of the funds announced in October 2023 the largest such investment in the grid since the Recovery Act 52 In November 2022 the Biden administration announced 550 million would be distributed from a grant program for clean energy generators for low income and minority communities created by the 2007 Energy Independence and Security Act and last funded by the Recovery Act 53 54 6 billion of the former amount will go to domestic nuclear power From the 73 billion the IIJA invests 45 billion in innovation and industrial policy for key emerging technologies in energy 430 million 55 21 billion in new demonstration projects at the DOE and nearly 24 billion in onshoring supply chain resilience and bolstering competitive advantages in energy divided into an 8 6 billion investment in carbon capture and storage 3 billion in battery material reprocessing 3 billion in battery recycling 1 billion in rare earth minerals stockpiling and 8 billion in new research hubs for green hydrogen 56 4 7 billion will go to plugging orphan wells abandoned by oil and gas companies 57 58 59 In August 2022 Biden signed the CHIPS and Science Act to boost DOE and National Science Foundation research activities by 174 billion 60 and the Inflation Reduction Act to create assistance programs for utility cooperatives 61 and a 27 billion green bank 62 including 6 billion to lower the cost of solar power in low income communities and 7 billion to capitalize smaller green banks 63 and appropriate 270 663 billion in clean energy and energy efficiency tax credits 64 65 66 including at least 158 billion for investments in clean energy and 36 billion for home energy upgrades from public utilities 67 68 69 The Biden administration itself claimed that as of November 2023 update the IIJA CaSA and IRA together catalyzed over 614 billion in private investment including 231 billion in electronics 142 billion in electric vehicles and batteries and 133 billion in clean energy generators and over 302 4 billion in public infrastructure spending including 22 7 billion in energy aside from tax credits in the IRA 70 needs update Department of Energy editMain articles 21st century fossil fuel regulations in the United States and United States Department of Energy The Energy Department s mission statement is to ensure America s security and prosperity by addressing its energy environmental and nuclear challenges through transformative science and technology solutions 71 As of January 2023 update its elaboration of the mission statement is as follows Catalyze timely material and efficient transformation of the nation s energy system and secure US leadership in clean energy technologies Maintain a vibrant US effort in science and engineering as a cornerstone of our economic prosperity with clear leadership in strategic areas Enhance nuclear security through defense nonproliferation and environmental efforts Establish an operational and adaptable framework that combines the best wisdom of all Department stakeholders to maximize mission success 71 Import policies editSee also Mandatory Oil Import Quota Program 1973 oil crisis and United States energy independence nbsp The trend of net energy imports into the United States US Energy Information Administration Petroleum edit nbsp United States oil product imports by country The US bans energy imports from countries such as Russia because of the Russo Ukrainian War 72 and Venezuela 73 The US limits exports of oil from Iran 74 The US imports energy from multiple countries led by Canada although it is a net exporter Export editThis section needs expansion You can help by adding to it November 2022 In 1975 the United States implemented a crude oil export ban which limited most of the crude oil exports to other countries It came two years after an OPEC oil embargo that banned oil sales to the U S had sent gas prices skyrocketing Newspaper photographs of long lines of cars outside of gas stations became a common and worrisome image 75 Congress voted in 2015 to repeal a 40 year ban on exporting U S crude oil Since that year crude exports have skyrocketed nearly 600 to 3 2 million barrels per day in 2020 according to data from the U S Energy Information Administration 76 Strategic petroleum reserve editThis section needs expansion You can help by adding to it November 2022 The United States Strategic Petroleum Reserve stores as much as 600M barrels of oil 48 needs update Energy consumption editThis section is an excerpt from Energy in the United States Final energy consumption edit nbsp Consumption by sector nbsp nbsp nbsp nbsp An example of each consumption sector a refinery a house a car and an office Industry has long been the country s largest energy sector 77 78 It used 33 of total energy in 2021 most of which was divided evenly between natural gas electricity and petroleum A survey from 2018 estimated that the largest energy users were the chemical industry 30 petroleum and coal processing 18 mining 9 and paper 9 79 The most energy intensive industry was by far petroleum and coal at over 30 billion BTU per employee The paper industry was second at 6 5 billion BTU per employee Each of these handles energy sources as part of their raw materials fossil fuels and wood 80 The same survey found that half of the electric use was to drive machines and about 10 each for heating cooling and electro chemical processes Most of the remainder was for factory lighting and HVAC About half of the natural gas was for process heating and most of the rest was for boilers 81 Transportation used 28 of energy almost all of which was petroleum and other fuels Half of the combustible fuels that make up the transportation sector were gasoline and half of the vehicle usage was for cars and small trucks 82 Diesel and heavier trucks each made up about a quarter of their respective categories jet fuel and aircraft were about a tenth each Biofuels such as ethanol and biodiesel made up 5 while natural gas was 4 Electricity from mass transit was 0 2 electricity for light passenger vehicles is counted in other sectors but figures from the US Department of Energy estimate that 2 1 million electric vehicles used 6 1 TWh to travel 19 billion miles indicating an average fuel efficiency of 3 1 miles per kWh 83 Over two thirds of the energy used by homes offices and other commercial businesses is electric including electric losses 84 85 Most of the energy used in homes was for space heating 34 and water heating 19 much more than the amount used for space cooling 16 and refrigeration 7 86 Businesses use similar percentages for space cooling and refrigeration They use less for space and water heating but more for lighting and cooking 87 Most homes in the US are single family detached 88 which on average use almost triple the energy of apartments in larger buildings 89 However single family households have 50 more persons and triple the floor space Usage per square foot of living space is roughly equal for most housing types except small apartment buildings and mobile homes Small apartments are more likely to be older than other housing types 90 while mobile homes tend to have poor insulation 91 Sources edit nbsp An offshore oil platformEnergy in the United States came mostly from fossil fuels in 2021 36 originated from petroleum 32 from natural gas and 11 from coal 92 Renewable energy supplied the rest hydropower biomass wind geothermal and solar supplied 12 while nuclear supplied 8 92 100 2 Quad The primary sources of US energy in 2019 93 nbsp Coal 11 4Quad 11 4 Hydro 2 5Quad 2 5 Geothermal 0 209Quad 0 2 Wind Power 2 74Quad 2 7 Solar 1 04Quad 1 0 Biomass 4 98Quad 5 0 Nuclear 8 46Quad 8 4 Natural Gas 32 1Quad 32 1 Oil 36 7Quad 36 7 Utilities editThis section needs expansion You can help by adding to it November 2022 In the U S utilities are regulated at the federal level by the Federal Energy Regulatory Commission in each state a public utility commission PUC regulates electricity gas and other forms of power 94 States began deregulating electricity systems in the 1990s as a way to promote competition and lower costs Transmission lines and distribution services are still provided by local utility companies Wholesale markets were created to determine power plant investments and allow utilities to acquire power for customers Those wholesale markets are operated by regional transmission organizations RTOs 95 Deregulation led to the creation of independent energy suppliers and allowed customers to choose their electric supplier Energy efficiency editMain article Efficient energy useOpportunities for increased energy are available across the economy including buildings appliances transportation and manufacturing Some opportunities require new technology Others require behavior change by individuals or at the community level or above Building related energy efficiency innovation takes many forms including improvements in water heaters refrigerators and freezers building control technologies heating ventilation and cooling HVAC adaptive windows building codes and lighting 96 Energy efficient technologies may allow superior performance e g higher quality lighting heating and cooling with greater controls or improved reliability of service through greater ability of utilities to respond to time of peak demand 96 More efficient vehicles save on fuel purchases emit fewer pollutants improve health and save on medical costs 96 Heat engines are only 20 efficient at converting oil into work 97 98 Energy budget initiatives and incentives editMain article List of United States Energy Acts See also Energy subsidies in the United States Most energy policy incentives are financial Examples of these include tax breaks tax reductions tax exemptions rebates loans and subsidies The Energy Policy Act of 2005 Energy Independence and Security Act of 2007 Emergency Economic Stabilization Act of 2008 and the Inflation Reduction Act all provided such incentives Tax incentives edit See also Tax credit Renewable Energy Investment Tax Credit ITC The US Production Tax Credit PTC reduces the federal income taxes of qualified owners of renewable energy projects based on grid connected output The Investment Tax Credit ITC reduces federal income taxes for qualified tax payers based on capital investment in renewable energy projects The Advanced Energy Manufacturing Tax Credit MTC awards tax credits to selected domestic manufacturing facilities that support clean energy development 99 Loan guarantees edit The Department of Energy s Loan Guarantee Program guarantees financing up to 80 of a qualifying project s cost 34 Renewable energy edit nbsp The Shepherds Flat Wind Farm is an 845 megawatt MW wind farm in the U S state of Oregon nbsp The 550 MW Desert Sunlight Solar Farm in California nbsp The 392 MW Ivanpah Solar Power Facility in California The facility s three towers nbsp Parabolic trough power station for electricity production near the town of Kramer Junction in California s San Joaquin Valley nbsp Tesla Roadster 2008 uses lithium ion batteries to achieve 220 mi 350 km per charge while also capable of going 0 60 in under 4 seconds In the United States the share of renewable energy in electricity generation has grown to 21 2020 100 Oil use is expected to decline in the US owing to the increasing efficiency of the vehicle fleet and replacement of crude oil by natural gas as a feedstock for the petrochemical sector One forecast is that the rapid uptake of electric vehicles will reduce oil demand drastically to the point where it is 80 lower in 2050 compared with today 101 A Renewable Portfolio Standard RPS is a state local mandate that requires electricity providers to supply a minimum amount of power from renewable sources usually defined as a percentage of total energy production 102 Biofuels edit The federal government offers many programs to support the development and implementation of biofuel based replacements for fossil fuels 103 Landowners and operators who establish produce and deliver biofuel crops may qualify for partial reimbursement of startup costs as well as annual payments 103 Loan guarantees help finance development construction and retrofitting of commercial scale biorefineries Grants aid building demonstration scale biorefineries and scaling up of existing biorfineries Loan guarantees and grants support the purchase of pumps that dispense ethanol including fuels 103 Production support helps makers expand output 103 Tax credits support the purchase of fueling equipment gas pumps for specific fuels including some biofuels 103 Education grants support training the public about biodiesel 103 Research development and demonstration grants support feedstock development and biofuel development 103 Grants support research demonstration and deployment projects to replace buses and other petroleum fueled vehicles with biofuel or other alternative fuel based vehicles including necessary fueling infrastructure 103 Producer subsidies edit The 2005 Energy Policy Act offered incentives including billions in tax reductions for nuclear power fossil fuel production clean coal technologies renewable electricity and conservation and efficiency improvements 104 Federal leases edit The US leases federal land to private firms for energy production The volume of leases has varied by presidential administration During the first 19 months of the Joe Biden administration 130k acres were leased compared to 4M under the Donald Trump administration 7M under the Obama administration and 13M under the George W Bush administration 105 Net metering edit This section is an excerpt from Net metering in the United States edit nbsp Growth of net metering in the United States Net metering is a policy by many states in the United States designed to help the adoption of renewable energy Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed beginning with utilities in Idaho in 1980 and in Arizona in 1981 106 In 1983 Minnesota passed the first state net metering law 107 As of March 2015 44 states and Washington D C have developed mandatory net metering rules for at least some utilities 108 However although the states rules are clear few utilities actually compensate at full retail rates 109 Net metering policies are determined by states which have set policies varying on a number of key dimensions The Energy Policy Act of 2005 required state electricity regulators to consider but not necessarily implement rules that mandate public electric utilities make net metering available to their customers upon request 110 Several legislative bills have been proposed to institute a federal standard limit on net metering They range from H R 729 which sets a net metering cap at 2 of forecasted aggregate customer peak demand to H R 1945 which has no aggregate cap but does limit residential users to 10 kW a low limit compared to many states such as New Mexico with an 80 000 kW limit or states such as Arizona Colorado New Jersey and Ohio which limit as a percentage of load 111 Electricity transmission and distribution editMain article North American power transmission grid nbsp The US power transmission grid consists of about 300 000 km 190 000 mi of lines operated by approximately 500 companies The North American Electric Reliability Corporation NERC oversees all of them Electric power transmission results in energy loss through electrical resistance heat generation electromagnetic induction and less than perfect electrical insulation 112 Electric transmission production to consumer loses over 23 of the energy due to generation transmission and distribution 113 In 1995 long distance transission losses were estimated at 7 2 of the power transported 114 Reducing transmission distances reduces these losses Of five units of energy going into typical large fossil fuel power plants only about one unit reaches the consumer in a usable form 115 A similar situation exists in natural gas transport which requires compressor stations along pipelines that use energy to keep the gas moving Gas liquefaction cooling regasification in the liquified natural gas supply chain uses a substantial amount of energy Distributed generation and distributed storage are a means of reducing total and transmission losses as well as reducing costs for electricity consumers 116 117 118 In October 2023 the Biden administration announced the largest major investments in the grid since the Recovery Act in 2009 119 120 The DOE announced the results of a mandated triennial study that for the first time in its history included anticipation of future grid transmission needs The DOE also announced the first three recipients of a new 2 5 billion loan program it called the Transmission Facilitation Program created to provide funding to help build up the interstate power grid They are the 1 2 gigawatt Twin States Clean Energy Link between Quebec New Hampshire and Vermont the 1 5 gigawatt Cross Tie Transmission Line between Utah and Nevada and the 1 gigawatt Southline Transmission Project between Arizona and New Mexico 121 The Federal Energy Regulatory Commission FERC is the primary regulatory agency of electric power transmission and wholesale electricity sales within the United States FERC was originally established by Congress in 1920 as the Federal Power Commission and has since undergone multiple name and responsibility modifications Electric power distribution and the retail sale of power is under state jurisdiction Order No 888 edit Order No 888 was adopted by FERC on April 24 1996 It was designed to remove impediments to competition in the wholesale bulk power marketplace and to bring more efficient lower cost power to the Nation s electricity consumers The legal and policy cornerstone of these rules is to remedy undue discrimination in access to the monopoly owned transmission wires that control whether and to whom electricity can be transported in interstate commerce 122 The Order required all public utilities that own control or operate facilities used for transmitting electric energy in interstate commerce to have open access non discriminatory transmission tariffs These tariffs allow any electricity generator to utilize existing power lines to transmit the power that they generate The Order also permits public utilities to recover the costs associated with providing their power lines as an open access service 122 123 Energy Policy Act of 2005 edit The Energy Policy Act of 2005 EPAct expanded federal authority to regulate power transmission EPAct gave FERC significant new responsibilities including enforcement of electric transmission reliability standards and the establishment of rate incentives to encourage investment in electricity transmission 124 Historically local governments exercised authority over the grid and maintained significant disincentives to actions that would benefit states other than their own Localities with cheap electricity have a disincentive to encourage making interstate commerce in electricity trading easier since other regions would be able to compete for that energy and drive up rates For example some regulators in Maine refused to address congestion problems because the congestion protects Maine rates 125 Local constituencies can block or slow permitting by pointing to visual impacts environmental and health concerns In the US generation is growing four times faster than transmission but transmission upgrades require the coordination of multiple jurisdictions complex permitting and cooperation between a significant portion of the many companies that collectively own the grid The US national security interest in improving transmission was reflected in the EPAct which gave the Department of Energy the authority to approve transmission if states refused to act 126 2022 Inflation Reduction Act edit The Inflation Reduction Act of the Biden administration has fast tracked transmission projects by helping purchase 30 billion in wholesale electric transmission contracts as well as publishing a national transmission needs report which had been expanded in scope by the Infrastructure Investment and Jobs Act 127 The U S transmission grid capacity would have to triple in order to meet the global target of net zero carbon emissions according to a Princeton University study 128 129 Greenhouse gas emissions editSee also Greenhouse gas emissions by the United States and Kyoto Protocol nbsp Though China has the greatest total annual carbon dioxide emissions the U S exceeds China in per capita emissions 130 nbsp CO2 emission per capita per year per country While the United States has cumulatively emitted the most greenhouse gases of any country it represents a declining fraction of ongoing emissions long superseded by China 131 132 Since its peak in 1973 per capita US emissions have declined by 40 resulting from improved technology the shift in economic activity from manufacturing to services changing consumer preferences and government policy 133 State and local government have launched initiatives Cities in 50 states endorsed the Kyoto protocol 134 Northeastern US states established the Regional Greenhouse Gas Initiative RGGI 135 a state level emissions cap and trade program On February 16 2007 the United States together with leaders from Canada France Germany Italy Japan Russia United Kingdom Brazil China India Mexico and South Africa agreed in principle on the outline of a successor to the Kyoto Protocol known as the Washington Declaration They envisaged a global cap and trade system that would apply to both industrialized nations and developing countries 136 137 The system did not come to pass Arjun Makhijani argued that in order to limit global warming to 2 C the world would need to reduce CO2 emissions by 85 and the US by 95 138 139 140 He developed a model by which such changes could occur Effective delivered energy is modeled to increase from about 75 Quadrillion Btu in 2005 to about 125 Quadrillion in 2050 141 but due to efficiency increases the actual energy input increases from about 99 Quadrillion Btu in 2005 to about 103 Quadrillion in 2010 and then to decrease to about 77 Quadrillion in 2050 142 Petroleum use is assumed to increase until 2010 and then linearly decrease to zero by 2050 The roadmap calls for nuclear power to decrease to zero with the reduction also beginning in 2010 143 Joseph Romm called for the rapid deployment of existing technologies to decrease carbon emissions He argued that If we are to have confidence in our ability to stabilize carbon dioxide levels below 450 p p m emissions must average less than 5 billion metric tons of carbon per year over the century This means accelerating the deployment of the 11 wedges so they begin to take effect in 2015 and are completely operational in much less time than originally modeled by Socolow and Pacala 144 In 2012 the National Renewable Energy Laboratory assessed the technical potential for renewable electricity for each of the 50 states and concluded that each state had the technical potential for renewable electricity mostly from solar and wind that could exceed its current electricity consumption The report cautions Note that as a technical potential rather than economic or market potential these estimates do not consider availability of transmission infrastructure costs reliability or time of dispatch current or future electricity loads or relevant policies 145 In 2022 the EPA received funding for a green bank called the Greenhouse Gas Reduction Fund to drive down carbon dioxide emissions as part of the Inflation Reduction Act the largest decarbonization incentives package in U S history 62 63 The Fund will award 14 billion to a select few green banks nationwide for a broad variety of decarbonization investments 6 billion to green banks in low income and historically disadvantaged communities for similar investments and 7 billion to state and local energy funds for decentralized solar power in communities with no financing alternatives 146 147 The EPA set the deadline to apply for the first two award initiatives at October 12 2023 148 and the latter initiative at September 26 2023 149 See also edit nbsp Politics portal nbsp Energy portal nbsp United States portal United States hydrogen policy 2000s energy crisis Carbon tax Carter Doctrine Climate change policy of the United States Economics of new nuclear power plants Electricity sector of the United States Emissions trading Energy and American Society Thirteen Myths Energy in the United States Energy law Energy policy of the Obama administration Energy policy of the Soviet Union List of United States energy acts List of U S states by electricity 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Retrieved May 29 2022 Wald Matthew August 27 2008 Wind Energy Bumps into Power Grid s Limits The New York Times A1 Retrieved December 12 2008 U S Department of Energy U S Dept of Energy website October 2023 National Transmission Needs Study Retrieved 25 December 2023 Peter Behr 25 December 2023 One Southwest power project s 17 year odyssey shows the hurdles to Biden s climate agenda Politico website Retrieved 25 December 2023 Princeton University Net Zero America 29 October 2021 Final Report Summary Net Zero America Potential Pathways Infrastructure and Impacts Princeton University website Retrieved 25 December 2023 Territorial MtCO2 GlobalCarbonAtlas org Retrieved December 30 2021 choose Chart view use download link Data for 2020 is also presented in Popovich Nadja Plumer Brad November 12 2021 Who Has The Most Historical Responsibility for Climate Change The New York Times Archived from the original on December 29 2021 Source for country populations List of the populations of the world s countries dependencies and territories britannica com Encyclopedia Britannica Raupach M R et al 2007 Global and regional drivers of accelerating CO2 emissions Proceedings of the National Academy of Sciences of the United States of America 104 24 10288 10293 China now no 1 in CO2 emissions USA in second position Netherlands Environmental Assessment Agency Archived from the original on July 1 2007 CO Data Explorer Our World in Data November 11 2022 Retrieved November 11 2022 US Climate Protection Agreement Home Page Archived from the original on September 30 2006 Retrieved November 7 2006 Regional Greenhouse Gas Initiative Retrieved November 7 2006 Politicians sign new climate pact BBC News February 16 2007 Retrieved March 30 2012 Guardian Unlimited Global leaders reach climate change agreement London Environment guardian co uk February 16 2007 Retrieved March 30 2012 Makhijani pg 3 Makhijani Arjun Carbon Free and Nuclear Free A Roadmap for U S Energy Policy 2007 ISBN 978 1 57143 173 8 Makhijani Fig 5 5 5 8 Makhijani Fig 5 7 Makhijani Fig 5 8 Makhijani Fig 5 5 Romm Joseph Cleaning up on carbon June 19 2008 Renewable Energy Technical Potential National Renewable Energy Laboratory Archived from the original on September 15 2012 Retrieved September 1 2012 p 2 Yanez Barnuevo Miguel September 12 2022 New Climate Law Jumpstarts Clean Energy Financing Article EESI Retrieved November 7 2022 About the Greenhouse Gas Reduction Fund United States Environmental Protection Agency June 5 2023 Retrieved June 13 2023 Biden Harris Administration Launches Historic 20 Billion in Grant Competitions to Create National Clean Financing Network as Part of Investing in America Agenda US EPA July 14 2023 Retrieved August 14 2023 Biden Harris Administration Launches 7 Billion Solar for All Grant Competition to Fund Residential Solar Programs that Lower Energy Costs for Families and Advance Environmental Justice Through Investing in America Agenda US EPA June 28 2023 Retrieved August 14 2023 Further reading editMatto Mildenberger amp Leah C Stokes 2021 The Energy Politics of North America The Oxford Handbook of Energy Politics Oil and Natural Gas Industry Tax Issues in the FY2014 Budget Proposal Congressional Research ServiceExternal links editUS Department of Energy Energy Information Administration Official Energy Statistics from the US government Residential Electricity Prices USDA energy United States Energy Association USEA US energy stats ISEA Database of U S International Energy Agreements Retail sales of electricity and associated revenue by end use sectors through June 2007 Energy Information Administration International Energy Agency 2007 Review of US Energy Policies Retrieved from https en wikipedia org w index php title Energy policy of the United States amp oldid 1221302749, wikipedia, wiki, book, books, library,

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