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Chapter 6. The Evolution of U.S. Energy Policy Policymaking is a dynamic field in which political actors are often placed in a unique position to either hinder or facilitate the development of an energy technology. Consequently, a bill’s passage ignites potential conflicts that arise from differing priorities regarding economic growth, national security, environmental impact, and political gain. As the 1973 oil embargo and the 2008 spike in oil prices have shown, the United States typically responds to energy crises with legislation aimed at conserving, securing, and increasing hydrocarbon based energy production. Energy independence and greenhouse gas reduction are, however, increasingly important priorities in energy policy. Three major energy bills have recently been enacted in response to changing priorities in energy policy. The Energy Policy Act of 2005, the Energy Independence and Security Act of 2007, and the Energy Improvement and Extension Act of 2008 all reveal some general patterns to the development of energy policy. Specifically, these legislative initiatives display the incrementalism, fragmentation, and polarization of U.S. energy policy. To successfully address current problems in energy policy, legislation must enact a National Energy Plan that is comprehensive, coordinated, and crafted to appease as many interests as possible. Energy Policy Act of 2005 The Energy Policy Act of 2005 (EPAct 2005) was the first omnibus energy legislation in a decade, winning the approval the 109th Congress and President Bush four years after first being introduced1 The bill was designed to address public concern over economic growth, the environment, and energy security. The legislation affected nearly all energy industries by providing $14.5 billion in tax incentives for domestic energy production in the traditional areas of oil, natural gas, and coal ($5.6 billion) as well as a range of renewable energy and electricity technologies ($7.5 billion) spanning solar, wind, geothermal, closed-loop biomass, ethanol, hydroelectric, hydrogen fuel cell, ocean wave and tidal, carbon sequestration and clean coal, nuclear, energy storage, hybrid and flex- fuel vehicles, and methane hydrate applications. The law also provided business and individual tax incentives for energy conservation and efficiency improvements ($130 million). The Congressional Research Service summarized several significant policy acts in the EPAct 2005: • A Renewable Fuels Standard (RFS) requiring the use of a baseline 4.0 billion gallons of renewable fuels such as biofuels for transportation in 2006, with a growth in that requirement to 7.5 billion gallons by 2012. 121PDF Image | Shaping Energy Technology Transition
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