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.

Federal energy policy acts were passed in 1974, 1992, 2005, 2007, 2008, 2009,<ref name="EISA">"Energy Independence and Security Act of 2007 (Enrolled as Agreed to or Passed by Both House and Senate)". Archived from the original on January 15, 2016. Retrieved 2008-01-18.</ref> 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.<ref>"Database of State Incentives for Renewables & Efficiency". Dsireusa.org. Retrieved March 30, 2012.</ref>

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.<ref>Grossman, Peter (2013). U.S. Energy Policy and the Pursuit of Failure. Cambridge University Press. p. 416. ISBN 978-1107005174.</ref><ref>Hamilton, Michael S. 2013. Energy Policy Analysis: A Conceptual Framework. Armonk, NY: M.E. Sharpe, Inc.</ref>

Americans constitute less than 5% of the world's population, but consume 26% of the world's energy<ref>"SEI: Energy Consumption". Solarenergy.org. Archived from the original on May 25, 2009. Retrieved March 30, 2012.</ref> 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.<ref>Smith, Grant (July 4, 2014). "U.S. is now world's biggest oil producer". www.chicagotribune.com. Bloomberg News. Retrieved July 4, 2014.</ref> 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.<ref name="oil">"EIA: U.S. Net Oil Imports to Drop to Lowest Levels in 60 Years". Retrieved July 13, 2018.</ref><ref name="gas">"BP Statistical Review 2018" (PDF). Retrieved June 15, 2018.</ref><ref>"U.S. Will Soon Export More Oil, Liquids Than Saudi Arabia". Retrieved March 9, 2019.</ref> In the second half of 2019, the US was the world's top producer of oil and gas.<ref>"U.S. Is Now Largest Oil... And Gas Producer In The World". Retrieved August 24, 2019.</ref> This energy surplus ended in 2020.<ref>"Is U.S. Energy Dominance Coming To An End?". Retrieved April 8, 2020.</ref><ref>"Oil producers agree to cut production by a tenth". BBC News. April 9, 2020. Retrieved April 10, 2020.</ref>

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

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.<ref name=HistElect>"Energy in the United States: 1635–2000 – Electricity". United States Department of Energy. Retrieved July 4, 2007.</ref> Coal gas was fractionated for use as lighting and town gas. Natural gas was first used in America for lighting in 1816.<ref>"Natural Gas". Archived from the original on January 8, 2008. Retrieved January 18, 2008.</ref> It has grown in importance, especially for electricity generation, but US natural gas production peaked in 1973<ref>"Oil and natural gas depletion and our future". Archived from the original on February 9, 2008.</ref> 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.<ref>Vivian, John. "Wood and Coal Stove Advisory". Motherearthnews.com. Retrieved March 30, 2012.</ref>

From the early 1940s, the US government and oil industry entered into a mutually beneficial collaboration to control global oil resources.<ref>Painter, David S. (1986). Oil and the American Century: The Political Economy of US Foreign Oil Policy, 1941–1954. Baltimore, MD: Johns Hopkins University Press. ISBN 978-0-801-82693-1.</ref> By 1950, oil consumption exceeded that of coal.<ref>"Petroleum Timeline". United States Department of Energy. Retrieved July 4, 2007.</ref><ref name=HistCoal>"Energy in the United States: 1635–2000 – Coal". United States Department of Energy. Retrieved July 4, 2007.</ref> 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.<ref name=HistTotal/>

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.<ref name=HistTotal>"Energy in the United States: 1635–2000 – Total Energy". United States Department of Energy. Retrieved July 4, 2007.</ref> 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.<ref name=HistPetro>"Energy in the United States: 1635–2000 – Petroleum". United States Department of Energy. Retrieved July 4, 2007.</ref>

Hydroelectricity was the basis of Nikola Tesla's introduction of the US electricity grid, starting at Niagara Falls, New York, in 1883.<ref>"Niagara Falls History of Power". Niagarafrontier.com. Retrieved March 30, 2012.</ref> 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.<ref name=HistElect /><ref name=HistRenew>"Energy in the United States: 1635–2000 – Renewable". United States Department of Energy. Retrieved July 4, 2007.</ref>

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.<ref>"Performance Profiles of Major Energy Producers 1993" (PDF). United States Department of Energy. Archived from the original (PDF) on November 27, 2001. Retrieved July 4, 2007. See page 48.</ref> 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<ref>"Weatherization Assistance Program". Eere.energy.gov. January 30, 2012. Retrieved March 30, 2012.</ref> 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.<ref>"Communities of the Future" (PDF). Retrieved March 30, 2012.</ref>

On August 4, 1977, President Jimmy Carter signed into law The Department of Energy Organization Act of 1977 (Template:USStatute), which created the United States Department of Energy (DOE).<ref name=Relyea2003>Relyea, Harold; Carr, Thomas P. (2003). The Executive Branch, Creation and Reorganization. Nova Publishers. p. 29.</ref> 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.<ref>Template:USPL</ref> 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.<ref>Template:USPL</ref><ref>Template:USC</ref>

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.<ref>"Estimating U.S. Government Subsidies to Energy Sources: 2002–2008" (PDF). Environmental Law Institute. Archived from the original (PDF) on January 17, 2013.</ref>

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.<ref>Erwin, Jerry (October 9, 2006). "The Challenges Facing the Intelligence Community Regarding Global Oil Depletion". Portland Peak Oil. Archived from the original on March 4, 2016. Retrieved April 29, 2009.</ref>

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.<ref>"Summary of the Energy Policy Act". EPA.gov. February 22, 2013. Retrieved April 16, 2020.</ref> The Act also started the Department of Energy's Loan Guarantee Program.<ref name=":0" />

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.<ref name="EISA" /> 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.<ref>Fred Sissine, Anthony Andrews, Peter Folger, Stan Mark Kaplan, Daniel Morgan, Brent D. Yacobucci (March 12, 2009). Energy Provisions in the American Recovery and Reinvestment Act (Report). Congressional Research Service. Retrieved October 25, 2019.{{cite report}}: CS1 maint: multiple names: authors list (link)</ref> 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.<ref name="whitehouse.gov 2016">"FACT SHEET: The Recovery Act Made The Largest Single Investment In Clean Energy In History, Driving The Deployment Of Clean Energy, Promoting Energy Efficiency, And Supporting Manufacturing". whitehouse.gov. February 25, 2016. Retrieved October 25, 2023.</ref>

In December 2009, the United States Patent and Trademark Office announced the Green Patent Pilot Program.<ref>"USPTO Expands Green Technology Pilot Program to More Inventions". United States Patent and Trademark Office. May 21, 2010. Retrieved July 12, 2012.</ref> The program was initiated to accelerate the examination of patent applications relating to certain green technologies, including the energy sector.<ref>"Emerging Energy and Intellectual Property – The Often Unappreciated Risks and Hurdles of Government Regulations and Standard Setting Organizations". The National Law Review. Husch Blackwell. May 22, 2012. Retrieved July 10, 2012.</ref> 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.<ref>"USPTO Extends Deadline to Participate in Green Technology Pilot Program by One Year". United States Patent and Trademark Office. November 10, 2010. Retrieved July 12, 2012.</ref>

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.<ref> This article incorporates public domain material from Direct Federal Financial Interventions and Subsidies in Energy in Fiscal Year 2016. United States Department of Energy. </ref>

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.<ref>Beavers, Olivia (June 1, 2017). "Pro-Paris agreement protesters flock to White House". The Hill. Retrieved May 8, 2019.</ref> On November 3, 2020, incoming President Joe Biden announced that the U.S. would resume its participation.<ref>Parsons, Jeff (January 21, 2020). "United States rejoins Paris climate agreement as Biden signs executive order". Metro. Retrieved January 28, 2020.</ref>

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.<ref>"Annual Energy Outlook 2021" (PDF). Retrieved February 21, 2021.</ref> The US imported much of its oil for many decades but in 2020 became a net exporter.<ref>"Oil imports and exports - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved November 10, 2022.</ref>

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.<ref name="U.S. Senate Committee on Energy and Natural Resources 2020">"ICYMI: What They're Saying About the Energy Act of 2020". U.S. Senate Committee on Energy and Natural Resources. December 29, 2020. Retrieved April 14, 2023.</ref><ref name="EESI 2020">Bresette, Daniel (December 22, 2020). "The Energy Act of 2020 is a Step in the Right Direction, But More Comprehensive Climate Action is Still Needed - Press Release". EESI. Retrieved April 14, 2023.</ref><ref name="IEA 2022">"Energy Act of 2020 (CCUS provisions) – Policies". IEA. March 10, 2022. Retrieved April 14, 2023.</ref>

Under President Joe Biden, one-third of the Strategic Petroleum Reserve was tapped to reduce energy prices during the COVID-19 pandemic.<ref name=":1">"DOE Announces Notice of Sale of Additional Crude Oil From the Strategic Petroleum Reserve". Energy.gov. Retrieved November 9, 2022.</ref> 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.<ref name="Energy.gov DPA announcement 2022">"President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy". Energy.gov. June 6, 2022. Retrieved November 24, 2022.</ref><ref name="The White House DPA 2022">The White House (June 6, 2022). "FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing". The White House. Retrieved November 24, 2022.</ref>

Biden also signed the Infrastructure Investment and Jobs Act to invest $73 billion in the energy sector.<ref name="npr.org">Sprunt, Barbara (August 10, 2021). "Here's What's Included In The Bipartisan Infrastructure Bill". NPR. Retrieved March 25, 2023.</ref> $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.<ref name="GRIP 2023">"Grid Resilience and Innovation Partnerships (GRIP) Program". Energy.gov. October 24, 2023. Retrieved October 25, 2023.</ref> (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.<ref name="National League of Cities 2021">"What You Need to Know About the Energy Efficiency and Conservation Block Grant". National League of Cities. December 3, 2021. Retrieved October 25, 2023.</ref><ref name="Energy.gov IIJA EECBG announcement 2022">"Biden-Harris Administration Announces $550 Million in Clean Energy Funding to Benefit and Lower Costs for More than 250 Million Americans". Energy.gov. November 22, 2022. Retrieved November 24, 2022.</ref>) $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<ref name="Energy.gov IDP announcement 2023">"Biden-Harris Administration Announces $6 Billion To Drastically Reduce Industrial Emissions and Create Healthier Communities". Energy.gov. March 8, 2023. Retrieved June 14, 2023.</ref>–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.<ref name="Higman 2021">Higman, Morgan (August 18, 2021). "The Infrastructure Investment and Jobs Act Will Do More to Reach 2050 Climate Targets than Those of 2030". Center for Strategic and International Studies. Retrieved November 24, 2022.</ref> $4.7 billion will go to plugging orphan wells abandoned by oil and gas companies.<ref name="Interior Department press release 2021">"Interior Department Releases Implementation Guidance to States on Infrastructure Law Efforts to Address Legacy Pollution". U.S. Department of the Interior. December 17, 2021. Archived from the original on December 30, 2022. Retrieved December 30, 2022.</ref><ref name="EESI 2021">Bertrand, Savannah (August 12, 2021). "Plugging Orphaned Oil and Gas Wells Provides Climate and Jobs Benefits - Article". EESI. Archived from the original on December 30, 2022. Retrieved December 30, 2022.</ref><ref name="Center for American Progress 2022">Hoffman, Elisia; Jurich, Kirsten; Argento-McCurdy, Hannah; Chyung, Chris; Ricketts, Sam (November 18, 2022). "How States Can Lead on Reducing Harms From Methane". Center for American Progress. Archived from the original on December 30, 2022. Retrieved December 30, 2022.</ref>

In August 2022, Biden signed the CHIPS and Science Act to boost DOE and National Science Foundation research activities by $174 billion<ref name="CSIS Science Act 2022">Shivakumar, Sujai; Arcuri, Gregory; Uno, Hideki; Glanz, Benjamin (August 11, 2022). "A Look at the Science-Related Portions of CHIPS+". Center for Strategic and International Studies. Retrieved November 24, 2022.</ref> and the Inflation Reduction Act to create assistance programs for utility cooperatives<ref name="Lechleitner 2022">Lechleitner, Liz (August 23, 2022). "Electric and agricultural co-op leaders respond to passage of Inflation Reduction Act". NCBA CLUSA. Retrieved November 24, 2022.</ref> and a $27 billion green bank,<ref name="Prospect 2023"/> including $6 billion to lower the cost of solar power in low-income communities and $7 billion to capitalize smaller green banks,<ref name="US EPA 2022">"Biden-Harris Administration Seeks Public Input on Inflation Reduction Act's Greenhouse Gas Reduction Fund". US EPA. October 21, 2022. Retrieved November 24, 2022.</ref> and appropriate $270–663 billion in clean energy and energy efficiency tax credits,<ref name="Reuters IRS 2022">Gardner, Timothy; Shepardson, David (October 5, 2022). "U.S. seeks input on climate law's $270 billion in tax breaks". Reuters. Retrieved November 24, 2022.</ref><ref name="CRFB">"CBO Scores IRA with $238 Billion of Deficit Reduction". Committee for a Responsible Federal Budget. Retrieved September 21, 2022.</ref><ref name="Tax Foundation">McBride, William; Bunn, Daniel (June 7, 2023). "Repealing Inflation Reduction Act's Energy Credits Would Raise $663 Billion, JCT Projects". Tax Foundation. Retrieved June 12, 2023.</ref> including at least $158 billion for investments in clean energy, and $36 billion for home energy upgrades from public utilities.<ref name="DOE/OP-0018">The Inflation Reduction Act Drives Significant Emissions Reductions and Positions America to Reach Our Climate Goals (PDF) (Report). United States Department of Energy Office of Policy. August 2022.</ref><ref name="Hank Green infographic">Green, Hank (August 12, 2022). The Biggest Climate Bill of Your Life - But What does it DO? (YouTube video). Missoula, Montana: Vlogbrothers. Event occurs at 10 minutes 50 seconds. Retrieved November 24, 2022.</ref><ref name="dem_sum">"Summary: The Inflation Reduction Act of 2022" (PDF). Senate Democratic Leadership. August 11, 2022. Retrieved November 24, 2022. Estimates from the United States Congressional Joint Committee on Taxation or Congressional Budget Office, depending on the number.</ref> 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).<ref name="Invest.gov 2023">"Investing In America". The White House. September 26, 2023. Archived from the original on November 7, 2023. Retrieved November 7, 2023.</ref>^{[needs update]}

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."<ref name="Energy.gov">"Mission". Energy.gov. Retrieved January 2, 2023.</ref>

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."<ref name="Energy.gov" />

Import policies

Petroleum

The US bans energy imports from countries such as Russia (because of the Russo-Ukrainian War),<ref>House, The White (March 8, 2022). "FACT SHEET: United States Bans Imports of Russian Oil, Liquefied Natural Gas, and Coal". The White House. Retrieved November 10, 2022.</ref> and Venezuela.<ref>"Weekly U.S. Imports from Venezuela of Crude Oil (Thousand Barrels per Day)". www.eia.gov. Retrieved November 10, 2022.</ref> The US limits exports of oil from Iran.<ref>Wallace, Paul (June 5, 2022). "US May Allow More Iran Oil to Flow Even Without Deal, Says Vitol". Bloomberg. Retrieved November 10, 2022.</ref> The US imports energy from multiple countries, led by Canada, although it is a net exporter.

Export

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.<ref>Egan, Matt (January 29, 2016). "After 40-year ban, U.S. starts exporting crude oil". CNNMoney. Retrieved March 19, 2023.</ref>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.<ref>Kelly, Stephanie; Renshaw, Jarrett; Kelly, Stephanie (December 9, 2021). "White House not weighing oil export ban, source says, as lawmakers urge higher domestic ouput [sic]". Reuters. Retrieved March 19, 2023.</ref>

Strategic petroleum reserve

The United States Strategic Petroleum Reserve stores as much as 600M barrels of oil.<ref name=":1" />^{[needs update]}

Energy consumption

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Sources

Energy in the United States came mostly from fossil fuels in 2021: 36% originated from petroleum, 32% from natural gas, and 11% from coal.<ref name=":9">"U.S. energy facts explained - consumption and production - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved August 18, 2022.</ref> Renewable energy supplied the rest: hydropower, biomass, wind, geothermal, and solar supplied 12%, while nuclear supplied 8%.<ref name=":9" />

100.2 Quad: The primary sources of US energy in 2019.<ref name="visu">"Visualizing America's Energy Use, in One Giant Chart". Visual Capitalist. May 6, 2020. Retrieved May 7, 2020.</ref>

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Utilities

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.<ref>An Overview of PUC s for State Environment and Energy Officials. U.S. Environmental Protection Agency.</ref>

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).<ref>"US Electricity Markets 101". Resources for the Future. Retrieved February 28, 2024.</ref>

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

Energy efficiency

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.<ref name="kam">"Opportunities for Greenhouse Gas Emissions Reductions" (PDF). Retrieved March 30, 2012.</ref>

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).<ref name="kam" />

More efficient vehicles save on fuel purchases, emit fewer pollutants, improve health and save on medical costs.<ref name=kam/>

Heat engines are only 20% efficient at converting oil into work.<ref>"Improving IC Engine Efficiency". Courses.washington.edu. Retrieved March 30, 2012.</ref><ref>"Carnot Cycle". Hyperphysics.phy-astr.gsu.edu. Retrieved March 30, 2012.</ref>

Energy budget, initiatives and incentives

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

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.<ref>The Bottom Line on Renewable Energy Tax Credits. World Resources Institute</ref>

Loan guarantees

The Department of Energy's Loan Guarantee Program guarantees financing up to 80% of a qualifying project's cost.<ref name=":0">U.S. Renewable Energy Quarterly Report, October 2010 Archived October 1, 2011, at the Wayback Machine American Council On Renewable Energy</ref>

Renewable energy

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).<ref>"Renewables became the second-most prevalent U.S. electricity source in 2020 - Today in Energy - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved November 24, 2021.</ref> 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.<ref>"DNV GL's Energy Transition Outlook 2018". eto.dnvgl.com. Archived from the original on November 23, 2021. Retrieved October 17, 2018.</ref>

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.<ref>U.S. Renewable Energy Quarterly Report Archived October 1, 2011, at the Wayback Machine American Council on Renewable Energy, October 2010. Retrieved 2011-04-12.</ref>

Biofuels

The federal government offers many programs to support the development and implementation of biofuel-based replacements for fossil fuels.<ref name=":2">"Alternative Fuels Data Center: Ethanol Laws and Incentives in Federal". afdc.energy.gov. Retrieved November 11, 2022.</ref>

Landowners and operators who establish, produce, and deliver biofuel crops may qualify for partial reimbursement of startup costs as well as annual payments.<ref name=":2" />

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.<ref name=":2" />

Production support helps makers expand output.<ref name=":2" />

Tax credits support the purchase of fueling equipment (gas pumps) for specific fuels including some biofuels.<ref name=":2" />

Education grants support training the public about biodiesel.<ref name=":2" />

Research, development, and demonstration grants support feedstock development and biofuel development.<ref name=":2" />

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.<ref name=":2" />

Producer subsidies

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.<ref>Energy Policy Act of 2005</ref>

Federal leases

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.<ref>DeBarros, Timothy Puko and Anthony (September 4, 2022). "Federal Oil Leases Slow to a Trickle Under Biden". The Wall Street Journal. ISSN 0099-9660. Retrieved November 9, 2022.</ref>

Net metering

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Electricity transmission and distribution

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.<ref> "Transmission and distribution technologies" (PDF). Archived from the original (PDF) on February 16, 2008. Retrieved 2008-01-18.</ref> Electric transmission (production to consumer) loses over 23% of the energy due to generation, transmission, and distribution.<ref>Preston, John L. (October 1994). "Comparability of Supply- and Consumption-Derived Estimates of Manufacturing Energy Consumption" (PDF). US Department of Energy. Archived from the original (PDF) on July 10, 2007. Retrieved July 6, 2007. Table 7: Total energy: 29,568.0 trillion Btu, Loss: 7,014.1 trillion Btu</ref> In 1995, long distance transission losses were estimated at 7.2% of the power transported.<ref>"Technology Options for the Near and Long Term" (PDF). US Climate Change Technology Program. August 2005. Archived from the original (PDF) on September 16, 2008. Retrieved October 5, 2008.</ref> 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.<ref>"Electric System Losses to Inefficiency" (PDF). Retrieved March 30, 2012.</ref>

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.<ref>"Power To The People! Michigan Tech Researchers Say Distributed Renewables Save Utility Customers Money". CleanTechnica. March 20, 2019. Retrieved October 27, 2019.</ref><ref>Prehoda, Emily; Pearce, Joshua M.; Schelly, Chelsea (2019). "Policies to Overcome Barriers for Renewable Energy Distributed Generation: A Case Study of Utility Structure and Regulatory Regimes in Michigan". Energies. 12 (4): 674. doi:10.3390/en12040674.</ref><ref>Gil, Hugo A.; Joos, Geza (2008). "Models for Quantifying the Economic Benefits of Distributed Generation". IEEE Transactions on Power Systems. 23 (2): 327–335. Bibcode:2008ITPSy..23..327G. doi:10.1109/TPWRS.2008.920718. ISSN 0885-8950. S2CID 35217322.</ref>

In October 2023, the Biden administration announced the largest major investments in the grid since the Recovery Act in 2009.<ref name="St. John 2023">St. John, Jeff (October 18, 2023). "The US just made its biggest-ever investment in the grid". Canary Media. Retrieved October 24, 2023.</ref><ref name="GRIP announcement 2023">"Grid Resilience and Innovation Partnerships (GRIP) Program". Energy.gov. October 24, 2023. Retrieved October 24, 2023.</ref> 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.<ref name="Canary Media transmission loans 2023">"Three big transmission projects win $1.3B in DOE loans". Canary Media. October 30, 2023. Retrieved October 31, 2023.</ref>

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

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."<ref name="Docket No. RM95-8-000">"Order No. 888". United States of America Federal Energy Regulatory Commission.</ref> 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.<ref name="Docket No. RM95-8-000" /><ref name="Order No. 888">Order No. 888, FERC. "Promoting Wholesale Competition Through Open Access Non-discriminatory Transmission Services by Public Utilities; Recovery of Stranded Costs by Public Utilities and Transmitting Utilities". Archived from the original on December 19, 2016. Retrieved December 7, 2016.{{cite web}}: CS1 maint: numeric names: authors list (link)</ref>

Energy Policy Act of 2005

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.<ref>Energy Policy Act of 2005 Fact Sheet (PDF). FERC Washington, D.C. August 8, 2006. Archived from the original (PDF) on December 20, 2016. Retrieved December 7, 2016.</ref>

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.<ref name="ncep2">Brown, Matthew H.; Sedano, Richard P. (2004). Electricity transmission : a primer (PDF). Denver, Colorado: National Council on Electricity Policy. p. 32 (page 41 in .pdf). ISBN 1-58024-352-5. Archived from the original (PDF) on July 30, 2009. Retrieved May 29, 2022.</ref>

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.<ref>Wald, Matthew (August 27, 2008). "Wind Energy Bumps into Power Grid's Limits". The New York Times: A1. Retrieved December 12, 2008.</ref>

2022 Inflation Reduction Act

The Inflation Reduction Act of the Biden administration has fast-tracked transmission projects by the purchase of $30 billion dollar wholesale electric contracts with budding transmission projects and publishing a national transmission needs report.<ref>U. S. Department of Energy. U.S. Dept. of Energy website (October 2023). National Transmission Needs Study. Retrieved 25 December 2023.</ref> 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.<ref>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.</ref><ref>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.</ref>

Greenhouse gas emissions

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.<ref>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.</ref><ref>"China now no. 1 in CO² emissions; USA in second position". Netherlands Environmental Assessment Agency. Archived from the original on July 1, 2007.</ref> 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.<ref>"CO₂ Data Explorer". Our World in Data. November 11, 2022. Retrieved November 11, 2022.</ref>

State and local government have launched initiatives. Cities in 50 states endorsed the Kyoto protocol.<ref>"US Climate Protection Agreement Home Page". Archived from the original on September 30, 2006. Retrieved November 7, 2006.</ref> Northeastern US states established the Regional Greenhouse Gas Initiative (RGGI),<ref>"Regional Greenhouse Gas Initiative". Retrieved November 7, 2006.</ref> 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.<ref>"Politicians sign new climate pact". BBC News. February 16, 2007. Retrieved March 30, 2012.</ref><ref>"Guardian Unlimited: Global leaders reach climate change agreement". London: Environment.guardian.co.uk. February 16, 2007. Retrieved March 30, 2012.</ref> 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%.<ref>Makhijani pg. 3</ref><ref>Makhijani, Arjun Carbon-Free and Nuclear-Free, A Roadmap for U.S. Energy Policy 2007 ISBN 978-1-57143-173-8</ref><ref>Makhijani Fig. 5-5, 5-8</ref> 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,<ref>Makhijani Fig. 5-7</ref> 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.<ref>Makhijani Fig. 5-8</ref> 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.<ref>Makhijani Fig. 5-5</ref>

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."<ref>Romm, Joseph. "Cleaning up on carbon", June 19, 2008</ref>

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."<ref>"Renewable Energy Technical Potential". National Renewable Energy Laboratory. Archived from the original on September 15, 2012. Retrieved September 1, 2012., p.2.</ref>

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.<ref name="Prospect 2023">Harris, Lee (January 19, 2023). "Green Capital Feuds With Local Lenders Over National Climate Bank". The American Prospect. Retrieved April 14, 2023.</ref><ref name="US EPA 2022"/> 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.<ref name="EESI 2022">Yañez-Barnuevo, Miguel (September 12, 2022). "New Climate Law Jumpstarts Clean Energy Financing - Article". EESI. Retrieved November 7, 2022.</ref><ref name="EPA About Page 2023">"About the Greenhouse Gas Reduction Fund". United States Environmental Protection Agency. June 5, 2023. Retrieved June 13, 2023.</ref> The EPA set the deadline to apply for the first two award initiatives at October 12, 2023<ref name="US EPA July 14 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.</ref> and the latter initiative at September 26, 2023.<ref name="US EPA June 28 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.</ref>

References

External links

US 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

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