Energy Policy: Setting the Stage for the Current Debate

Publication Date: May 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

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Abstract:

The Bush Administration issued its plan for a national energy policy on May 16, 2001. The plan was controversial, characterized by some as leaner on conservation and renewable than Democratic proposals, and predisposed to trade off environmental considerations to increase supply. Comprehensive energy legislation was introduced in the Senate by both parties by late March (S. 388, S. 389, S. 596, S. 597). Bills reported by several House committees (H.R. 2436, H.R. 2460, H.R. 2511, and H.R. 2587) were combined in a single bill, H.R. 4, passed by the House, August 1, 2001. The bill would require a 5 billion gallon reduction in light-duty truck and SUV fuel consumption and would open the Arctic National Wildlife Refuge (ANWR) to leasing.

Debate on comprehensive energy legislation, Amendment No. 2917 to S. 517, began in the Senate in late February. Amendments approved during the first days of the debate included language: designating a southern route for the proposed Alaskan natural gas pipeline; reauthorization of the nuclear liability insurance provisions known as the Price-Anderson Act; authorization of a study of the effect on drinking water of a hydraulic fracturing process used in both natural gas and coal methane production; and adding the text of S. 235, pipeline safety reform legislation, previously approved by the Senate last year.

On March 13, the Senate approved an amendment to allow the National Highway Traffic Safety Administration (NHTSA) to go through the sort of rulemaking process used in the past to set CAFE standards. The Senate also approved language to freeze “pickup trucks” – yet to be defined – at the current light truck standard of 20.7 miles per gallon.

On March 14, the Senate rejected a proposal to require that 20% of the nation’s electricity generation come from renewable energy sources. An amendment to eliminate the 10% requirement in the Democratic proposal was defeated. A package of amendments eliminated or scaled back language that would have extended Federal Energy Regulatory Commission (FERC) authorities to guarantee reliability of the transmission system. On April 10, an amendment to strike most of the bill’s electricity provisions was defeated. A cloture motion to end debate on an amendment to give the Commodity Futures Trading Commission authority to regulate energy derivatives trading was defeated on April 10.

Language in S.Amdt. 2917 would establish a renewable fuel standard that would increase the use of ethanol. Critics argued that the standard will boost prices to consumers and create shortages. However, an amendment to soften the program was tabled April 11.

Opponents of opening ANWR filibustered. On April 18, the Senate defeated (54- 46) a procedural motion to invoke cloture on the debate. An amendment to ban Iraqi oil imports to the United States passed (88-10). The Senate passed its energy bill (88-11) on April 25 and has named its conferees.

The crafting of energy policy is complicated by the tradeoffs between equally worthy policy goals – how to provide adequate low cost supplies of energy without jeopardizing other public values, including health, the environment, and the economy. Against such a backdrop, it is a challenge to develop a consistent and unified energy policy.