As we continue our review of energy in the U.S., we now turn to the role of Energy Policy legislation and Executive Branch actions. In a previous lesson, we learned specifically about the role of deregulation and how it relates to renewable energy policy. But on a much broader scale, there have been several times in history when global and national events and conditions led to the creation of overarching energy policy legislation that had significant, cross-cutting impact on energy development and markets. There have been five major, relatively recent policies. In this lesson, we will review those policies and what the key impacts were for each. We will also touch on executive branch actions that have affected the marketplace.

Learning Outcomes

Upon completion of this lesson, you will be able to:   

• Identify the key aspects of the seven pieces of energy policy legislation 
• Describe how the Federal government leverages its energy use to impact the energy marketplace
• Describe the role of Executive Orders in driving Federal government energy use
• Explain how these policies affect energy accessibility, reliability, security, and sustainability

Lesson Roadmap

Questions?

If you have questions, please feel free to post them to the Questions about EGEE 401 Discussion forum in Canvas. While you are there, feel free to post your own responses if you, too, are able to help a classmate.

Federal Government Energy Use and Executive Branch Actions

We speak often of legislation and regulations, but the executive branch of government- the White House and federal agencies, also play a significant role in energy. For the purpose of this discussion, we consider the government not as the developer of legislation or implementer of law and regulation, but as an organization with energy-related impacts and demands. The U.S. government is one of the largest procurers of the energy in the world, and the single largest user and purchaser of energy in the U.S. The purchasing power of government to simply maintain its operations is large enough to affect and, to an extent, actually shape markets and pricing. Also, goals for improvement in energy performance can have a big impact on the overall energy use in the country.

One type of approach commonly used by the Federal government is the Executive Order (EO). An EO is a directive from the President to the Federal agencies and those entities under Executive Branch jurisdiction. An EO is not binding on the general public. However, EOs do impact the general population by the actions, or lack of actions, of Federal agencies in response to an EO. EOs do not have the force of law and remain in effect once issued until it is revised or revoked by the issuing President or a subsequent President. Congress can memorialize all or part of an EO into legislation, as happened with the energy efficient Federal buildings part of EO 13423 into the energy act of 2007 (see below). Once this happens, the EO or the portion memorialized now has the force of law and can only be changed or undone by Congress.

In the realm of energy, EOs are important in that they drive Federal use and procurement of energy which in turn affects the energy markets, in part because of the great use of energy by government operations.

Before we delve into what goals and commitments the Federal government has made over the years, let us explore how the U.S. government figures into national energy use.

Now that we have a better use of how and how much energy is used by the government, let us explore how the government has addressed their energy usage over time. The best way to explore this is to review the various EOs in the past 20 years. EO 13423 issued in 2007 was the first one that consolidated the various environmental and energy goals of the government into a single, coordinated, and integrated sustainability strategy.

During the same periods of time when the EOs were being conceptualized and issued, Congress was busy developing pieces of legislation. Although there is no set interval for these actions, there have been some key events and conditions that led to the development of the legislation. Beginning with the 1978 act prompted by the severe Middle East oil crisis that resulted in long lines at the gas pumps, we see legislative actions attempting to solve a problem. We also see a pattern from the early acts to the later ones of first trying to address inherent flaws and weaknesses in our energy infrastructure, and then evolving into trying to further protect the consumer and incentivize more sustainable solutions such as renewable power and more fuel efficient and alternative fuel transportation.

Below are links to the key acts since 1975. For each, there is a summary of its key provisions and why they came to be. Also provided below are some useful links to read more about the legislation. If you are extra ambitious, links are also provided to the legislation itself. You do not have to read the acts themselves, but briefly scanning them will give you some good insight into how complex these pieces of legislation are. Also keep in mind that this Federal effort is superimposed on state level legislation and regulation. As the power sector became more deregulated at the Federal level, it forced the states to take on more responsibility, as we saw in the previous lesson.

Energy Policy and Conservation Act of 1975

The primary goals of EPCA are to increase energy production and supply, reduce energy demand, provide energy efficiency, and give the executive branch additional powers to respond to disruptions in energy supply.

• Public Law 94-163

Energy Conservation and Production Revenue Act of 1976 

The Energy Conservation and Production Act of 1976 (P.L. 94–385) took the Energy Policy and Conservation Act of 1975 one step further by including incentives for conservation and renewable energy and providing loan guarantees for energy conservation in public and commercial buildings.

• H.R.6860 - 94th Congress (1975-1976): Energy Conservation and Conversion Act
• A good summary of the 1975 and 1976 actions are found on pages 4 and 5 of the FEA Report

1978-National Energy Act of 1978

The National Energy Act (NEA) of 1978 was passed by the U.S. Congress in response to the energy crisis of the 1970s. It was designed to resolve a disjointed national energy policy and empower the United States with greater control of its national energy destiny. The NEA and its progeny established energy efficiency programs, tax incentives, tax disincentives, energy conservation programs, alternative fuel programs, and regulatory and market-based initiatives. Results of the NEA have been mixed. Most of the market-based initiatives have been retained, but many of the regulatory initiatives have since been abandoned.

• National Energy Act of 1978

Energy Policy Act of 1992

The Energy Policy Act (EPAct) of 1992 (Public Law 102-486(PDF)) aims to reduce U.S. dependence on petroleum and improve air quality by addressing all aspects of energy supply and demand, including alternative fuels, renewable energy, and energy efficiency. EPAct 1992 encourages the use of alternative fuels through both regulatory and voluntary activities and approaches the U.S. Department of Energy (DOE) carries out. It requires federal, state, and alternative fuel provider fleets to acquire alternative fuel vehicles. EPAct 1992 also defines "alternative fuels" as: methanol, ethanol, and other alcohols; blends of 85% or more of alcohol with gasoline (E85); natural gas and liquid fuels domestically produced from natural gas; propane; hydrogen; electricity; biodiesel (B100); coal-derived liquid fuels; fuels, other than alcohol, derived from biological materials; and P-Series fuels, which were added to the definition in 1999. Under EPAct 1992, the US Department of Energy (DOE) has the authority to add more alternative fuels to the list of authorized alternative fuels if certain criteria are met. DOE's Clean Cities initiative was established in response to EPAct 1992 to implement voluntary alternative fuel vehicle deployment activities.

• Alternative Fuels Data Center
• Energy Policy Act of 1992

Energy Policy Act of 2005

This act was intended to further promote coal, oil, and gas development, but also provided for incentives such as tax credits for renewables. This act also had several provisions for clean fuels and alternative fuel vehicles. Another key component was a continuing effort to address the public utilities’ issues with power generation. This included provisions to fix problems caused by earlier legislation that deregulated parts of the power generation sector.

• Energy Policy Act of 2005
• Energy Policy Act of 2005 Fact Sheet
• Impacts of the Energy Policy Act of 2005

Energy Independence and Security Act (EISA) of 2007

Signed on December 19, 2007, the act aims to increase U.S. energy security, develop renewable energy production, and improve vehicle fuel economy. Additionally, the act strived to increase the production of clean renewable fuels; protect consumers; increase the efficiency of products, buildings, and vehicles; promote research on and deploy greenhouse gas capture and storage options; improve the energy performance of the Federal Government. Regarding the Federal government performance, the act memorialized as law portions of Executive Order 13423.

• Energy Independence and Security Act of 2007
• Energy Independence and Security Act of 2007 (Summary)
• Summary of the Energy Independence and Security Act

Energy Policy Modernization Act of 2015

Overall, this bill continues the pattern seen throughout the development of legislation of increasing renewables, providing for more energy security by promoting domestic oil, gas, and coal production, and ensuring more reliable and affordable energy. This bill amends the Energy Conservation and Production Act, the Energy Policy and Conservation Act (EPCA), and the Energy Independence and Security Act of 2007 with respect to energy efficiency in buildings and appliances.

• Energy and Natural Resources: Energy Policy Modernization Act
• Alliance to Save Energy: The Energy Policy Modernization Act of 2015

The Energy Act of 2020

The Energy Act modernizes and refocuses the Department of Energy’s research and development programs on the most pressing technology challenges — scaling up clean energy technologies like advanced nuclear, long-duration energy storage, carbon capture, and enhanced geothermal. Crucially, across all of these technologies, DOE is now empowered to launch the most aggressive commercial scale technology demonstration program in U.S. history. The bill sets up a moonshot of more than 20 full commercial scale demos by the mid-2020s.

• The Energy Act of 2020

Executive Order

• Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (White House press release)

The Energy Provisions of the Inflation Reduction Act of 2022

The Inflation Reduction Act (IRA), which was signed into law in August 2022, will cut Americans’ energy costs, create good jobs and transform U.S. efforts to address the climate crisis. It is the largest single step that Congress has ever taken to address climate change. The IRA includes nearly $370 bilion in investments in disadvantaged communities, prioritizing projects that repurpose retired fossil fuel infrastructure and employ displaced workers, setting the U.S. on a course toward a fair, equitable and economic clean energy transition. 

• Overview of Energy and Climate Provisions in the IRA

Overview:

In this lesson we learned about energy policy in the U.S. and the role of deregulation in renewable energy policy. In this assignment, you will draft a summary discussing key aspects of these policies.

Purpose:

This assignment will help you practice synthesizing your knowledge and presenting a concise written summary of key principles relating to energy generation and the four factors.

Successful Completion:

For this lesson’s assignment, imagine you are an expert providing consultation to the Congress in developing the “EGEE 401 Energy Policy Act of 2025.” You are tasked with writing the summary section identifying key provisions of the act. In 325 words (plus or minus 10%), write this summary, with an opening statement of the overall intent of the act, and continue with statements or bulleted points of the key provisions. For example, what would you say about power generation and the grid? Renewable energy? Climate change? Coal, oil, and gas? As part of your introduction, comment on key aspects of earlier legislation that informed your approach. In your essay, include something for about how your new legislation will support accessibility, security, reliability, and/or sustainability. You might want to review the most recent Acts to get a sense of how these are structured and for some content hints!