Energy Policy: Current and Alternative Energy Sources

1. Energy Policy: Current and Alternative Energy Sources Presented by: Allie Ackerman, Beth Kellmurray, Joe Keller, and Nick Wright

2. ProblemStatement: • Current energy policy, if left unchanged, could harm the environment, destabilize economies, and bring conflict among nations.

3. Pollution: • At every stage of production, oil causes pollution. • Burning coal is a major contributor to air pollution. Along with nuclear power, coal burning is the dirtiest source of energy. It can cause smog, acid rain, and release greenhouse gasses into the atmosphere. • Out of all of the fossil fuels natural gas is the cleanest to burn.

4. Economy: • The law of supply and demand in economics explains the constant fluctuation of oil prices. • Rising petroleum prices greatly affect other industries as well, for example shipping. • Oil-producing countries formed OPEC in 1960. OPEC is a cartel (a group of businesses that agree to control production and marketing to avoid competing with one another).

5. Economy (cont.): • Coal is the cheapest of the fossil fuels, seeing record low prices as recently as 2003. • California was a leader in deregulating its electricity industry. Starting in the summer of 2000, they experienced wide spread blackouts, and sharp increases in prices.

6. Global: • Figure 1.1 The world’s known oil reserves (2006) • The more we rely on foreign oil, the more our economy is vulnerable to other nations’ reserves and political situations. Energy independence is an important goal we must strive for.

7. Alternative Energy: • Most of the best sites for large hydro plants are already developed. • One major disadvantage to smaller hydro plants is the reliance on precipitation. • Geothermal plants are not efficient, and can only be built in certain locations. This makes power from this source only accessible to very few consumers. • Many people find the appearance and noise of wind turbines unappealing. They also require wind to be blowing to be effective

8. Alternative Energy (cont.): • Solar power costs up to three times as much as energy from fossil fuels. • The primary disadvantage is solar energy requires a sunny climate to be effective. It also requires a lot of space to efficiently harness solar energy.

9. Energy Policies: • Energy Policy Act of 1992 • Energy Policy Act of 2005 • Energy Independence and Security Act of 2007 • Food, Conservation, and Energy Act of 2008 • American Recovery and Reinvestment Act of 2009

10. Energy Policy Act of 1992: • Addressed: • Energy efficiency, conservation, and management • Natural gas imports and exports • Alternative fuels for certain fleet vehicles • Electric vehicles • Coal power and clean coal • Renewable energy

11. Energy Policy Act of 2005: • Passed July 29, 2005 by George W. Bush • Created to address increasing energy problems • Provides tax incentives and loan guarantees for different types of energy production

12. Provisions of the Energy Policy Act of ’05: • Loan guarantees for “innovative technologies” that avoid greenhouse gases • Increased the amount of biofuel (usually ethanol) mixed in with gasoline • Authorized subsidies for wind and other alternative energy producers • Made geothermal energy more competitive with fossil fuels in generating electricity

13. More Provisions of Energy Policy Act of ’05: • Tax breaks for homeowners who make energy conservation improvements • Requires no drilling for gas or oil in or underneath the Great Lakes

14. Energy and Independence Act of 2007: • Goals • For the U.S. to become more energy independent and secure • Increase production of clean renewable fuels • Promote research on greenhouse gases • Improve energy performance of the Federal Government

15. Provisions of Energy and Independence Act: • Incentives for the development of plug-in hybrids • Taxpayer funding for increased production of biofuels • Revised standards for appliances and lighting • Promote conservation in buildings and industry

16. More Provisions of Energy and Independence Act: • Creation of a training program for “Energy efficiency and renewable workers” -- known as green jobs • Offer small businesses loans for energy efficiency improvements

17. Food, Conservation, and Energy Act of 2008: • Passed June 18, 2008 • Initiatives for increased support for the production of cellulosic ethanol

18. Provisions of Food, Conservation, and Energy Act: • Provides grants covering 30% of the cost of developing biorefineries to produce advance biofuels • New tax credit for producers of biofuels created from wood, grasses, or the non-edible parts of plants (cellulosic biofuels) • Creates a “Rural Energy Self-Sufficiency Initiative” • Supports efforts to develop community-wide renewable energy systems

19. American Recovery and Reinvestment Act of 2009: • $80 billion towards clean energy investments to build clean energy jobs • Increasing fuel economy standards for cars in 2011 so they have better mileage • More efficiency standards for household appliances • Create legal action to reduce mercury emissions worldwide • Create a programs to produce electricity from wind, wave, and ocean currents

20. Governmental Actors: • U.S. top four oil imports • Venezuela • Mexico • Canada • Saudi Arabia • U.S. Department of Energy • U.S. Energy Information Administration

21. The Federal Government: Plays the largest role in energy policy Both Congress and the President’s Cabinet are heavily involved in shaping these policies The Department of Energy and the Environmental Protection Agency have the largest roles within the executive branch The House of Representatives and the Senate have several standing committees involved in energy policy

22. Department of Energy: • Secretary of Energy is currently Steven Chu • Single largest entity related to energy policy under the authority of the President • In order to advise the President on energy policy, the DOE has several offices and programs that deal with specific areas of energy • Office of Energy Efficiency and Renewable Energy • Office of Fossil Energy • Office of Nuclear Energy • Geothermal Technologies Program • Hydrogen Program • Solar Energy Technology Program

23. Department of Energy, continued: The DOE works with the Environmental Protection Agency in order to assess the environmental impact of current policies, as well as the potential impact of policies under consideration The DOE, in addition to reporting to the President, also answer to two standing committees within Congress, the House Science Committee and the Senate Committee on Energy and Natural Resources

24. The House of Representatives: • Several committees and subcommittees involved with energy policy • House Committee on Science and Technology • Subcommittee on Energy and Environment • House Committee on Energy and Commerce • Subcommittee on Energy and Environment • House Committee on Agriculture • Subcommittee on Conservation, Credit, Energy, and Research • House Committee on Natural Resources • Subcommittee on Energy and Mineral Resources • Subcommittee on Water and Power

25. Senate of the United States: • The Senate has fewer committees in place to deal with energy policy specifically, but their committees still have a large amount of power • Senate Committee on Energy and Natural Resources • Subcommittee on Energy • Subcommittee on Water and Power • Senate Committee on Agriculture, Nutrition, and Forestry • Subcommittee on Energy, Science, and Technology

26. The Role of States: States have a limited role when it comes to energy policy. For the most part, they interpret and implement the policies of the federal government Cabinet positions that deal with energy policy in Ohio are the Department of Natural Resources and the Ohio EPA Committees in the General Assembly involved with energy include the Senate Committee on Environment and Natural Resources, the House Committee on Alternative Energy, and the House Committee on Agriculture and Natural Resources

27. Non-Governmental Actors: • Energy lobby = umbrella term for interest groups that advocate natural resource development • Paid representatives • Oil, gas, coal, and electric utilities • Corporations: Exxon Mobil, Royal Dutch Shell, BP, Total S.A., Chevron Corporation, ConocoPhillips

28. Non-Governmental Actors: • Environmental groups • Public Citizen’s Critical Mass Energy and Environment Program • Natural Resources Defense Council • Alternative energy • Biological Energy Interest Group • Geothermal Energy Interest Group • Think tanks • National Institute on Money in State Politics

29. Interests: • To advance their cause • To raise money • To influence public opinion • To enact policies through legislation or implementation that reflect their agendas

30. Tactics: • Media campaigns • Lobbying in Washington • Investigation, research, and polls • Membership drives • Mailings

31. Tactics: • Publish reports • Educate the public with their view/data • Publicity through demonstrations and meetings • Grassroots approaches • Recruitment

32. Did You Know? • Most money from the energy lobby goes to the Republican party and its candidates • Critics of the energy lobby accuse it of blocking legislation regarding climate change

33. Policy Effectiveness: • EPAct of 1992 • Didn’t improve energy dependence • EPAct of 2005 • Significant reduction in home heating, auto oil consumption, and dependence on imported oil • Republicans wanted to be able to drill in ANWR • EPAct of 2007 • Phasing out of incandescent light bulbs saved $18 billion every year in electricity usage • Argued that it would increase energy dependence by making renewable energy production more expensive

34. Policy Recommendations: • Continue to make tangible improvements to reduce energy consumption and dependence on foreign energy

35. Questions? Allie Ackerman, Beth Kellmurray, Joe Keller, and Nick Wright