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Mini-CourseA Century's Quest for National Consensus on Energy PolicyOctober 29 - November 1, 2007 Vito Stagliano
The course comprises four lectures and discussions on the history and consequences of U.S. energy policy, from the New Dealers to the NeoCons. The objective of the course is to familiarize students with the ebb and flow of U.S. domestic and international policies and how these have shaped the production, transformation and consumption of the fuels and technology that power the U.S. economy, and relations with other nations. The lectures will aim to establish that there cannot be, in actual fact, a national "energy" policy, given the statutory, legal and regulatory history that compels distinct treatment of each of the major fuels and technologies involved in providing useful energy to consumers. The lectures will examine social, economic, security and environmental aspects of energy policy-making. Syllabus The four lectures will cover the following topics: October 29 - From Roosevelt (FDR) to Bush (GWB): A Short History of Energy Policy View the lecture video | View the PowerPoint presentation (PDF) Franklin Roosevelt's New Dealers established and institutionalized an expansive role for government in the U.S. energy sector, driven primarily by the collapse of the investor-owned electric utility industry in the early 1930s. The Federal Power Act, the Federal Gas Act and the Public Utilities Holding Company Act, the statutes that still largely govern the key components of the energy sector, were all enacted in 1935. The Tennessee Valley Authority and other Federal Power Marketing Administrations were created by the New Dealers as counterweights to investor-owned utilities. Dwight Eisenhower was the next important Federal intervenor in the energy sector. He established the Atoms for Peace program that gave birth to the civilian nuclear industry. He also imposed controls on oil imports in order to protect the domestic industry from cheaper overseas supplies, a policy that instigated the formation of the Organization of Petroleum Exporting Countries (OPEC). Richard Nixon managed the fallout from the Saudi-Kuwaiti oil embargo of 1973 by seeking to make the U.S. "energy independent," one of the most elusive energy policy objectives in U.S. history. Gerald Ford, his successor, was forced to abandon Nixon's "Project Independence Blueprint," as infeasible, but succeeded in creating the International Energy Agency that to-date continuous to coordinate the energy policies of its mainly energy-consuming member states. Jimmy Carter, whose Administration was consumed by the second energy crisis of 1979, radically reorganized Federal energy functions by establishing the first Department of Energy, a sprawling bureaucracy responsible, inter alia, for the U.S. nuclear weapons complex. Ronald Reagan reverted to the laissez faire energy policy of earlier Administration after decontrolled oil prices. George H.W. Bush signed into law the Energy Policy Act of 1992, which launched the restructuring of the electric power sector, and the Clean Air Act of 1990, which curbed acid rain and auto emissions. Bill Clinton took no major initiatives on the energy policy front. George W. Bush began his presidency with Vice President Dick Cheney's notorious "Energy Task Force," and eventually signed into law the Energy Policy Act of 2005, which arrested and in some cases reversed his father's power sector reforms. Readings:
October 30 - Oil and Gas Policy: The Chimera of Energy Independence View the lecture video | View the PowerPoint presentation (PDF) For most of the 20th century, oil and gas production was subjected principally to the oversight of States, though interstate commerce in both fuels remained a Federal responsibility under the Constitution. Trade in both fuels was bilateral, conducted under various regimes of price controls, and concentrated among many small producers domestically, and few large players internationally. There were no markets for either fuel until prices controls were lifted on oil in 1981 and on gas in 1989. It was the stated policy of the United States, through the Eisenhower Administration to rely on lower cost imported oil in order to meet domestic demand. The import emphasis shifted as a consequence of the oil embargo of 1973, which established a psychological benchmark of distrust for, especially, Middle Eastern oil producers. Oil is today the single largest global commodity, traded in physical form and far more extensively in derivative financial instruments. Readings:
October 31 - The Electricity Sector: Regulatory Duopoly View the lecture video | View the PowerPoint presentation (PDF) The power sector remains comprehensively regulated at Federal and State levels, its markets overseen, more or less effectively, by panoply of regulatory agencies (FERC, SEC, CFTC, FTC, Department of Justice). States retain complete control over siting and permitting of power plants and distribution lines, while the Federal Energy Regulatory Commission (FERC) exercises authority over wholesale transactions of electrons and interstate transmission lines. The restructuring of the power sector, aimed principally at the introduction of competition in electricity generation, and less frequently and less successfully at providing retail customers a choice of suppliers, began hesitantly during the Carter Administration with enactment of the Public Utilities Regulatory Policy act (PURPA). It was carried further in the Energy Policy Act of 1992, and in subsequent FERC Orders 888/889, which respectively opened the door to independent generators and provided open access to the transmission system. Today, half of the nation operates under a competitive market regime, the other half under the old model of vertically integrated utilities. Readings:
November 1 - Energy & Climate Change: Reconciling Incompatible Goals View the lecture video | View the PowerPoint presentation (PDF) A commercial energy system, powered mainly by fossil fuels, is generally incompatible with perceived requirements to substantially reduce concentrations in the atmosphere of the carbon molecules that contribute to earth's warming. Difficult choices are ahead for policymakers as to the economic and technological options to retain the use of low-cost fossil fuels while capturing and disposing of carbon emissions, while subsidizing the entry of alternative fuels and technologies. Thus far, national and international regimes to contain and reduce carbon emissions, such as the Kyoto treaty and the voluntary U.S. efforts, have not produced the results necessary to diminish carbon concentrations in the atmosphere to sustainable levels. The U.S. is considering mandatory legislation to cap carbon emissions and reduce them over time. The signatories to the Kyoto treaty are contemplating a new regime in the post 2010 time period. Readings:
References and Optional Readings
RSVP An RSVP is required to attend each lecture as seating is limited. All lectures will take place from 12:00 - 1:30 p.m. in the Harris School Quiet Study Room - 1155 E. 60th Street. |
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