Environmental Engineering Reference
In-Depth Information
administration racked up US$5.8 trillion in iscal deicit, more than any
other administration in US history including the massive deicit incurred in
eight years of Republican rule under George W. Bush. Both parties recognize
such large deicits are damaging to the US economy. Consequently, to rein in
spending, a Budget Control Act was passed in 2011 that places limits on dis-
cretionary spending. Since then virtually any issue that is subject to discre-
tionary funding has come under intense political scrutiny, and this includes
expenditures like energy R&D and subsidies for renewable energy. he
debate over what to fund has become so politicized that the parties could
not reach agreement on a 2013 budget, resulting in a provisional budget
(through the end of March 2013) being approved at the end of September
2012. he budget for the remainder of the year was not signed by President
Obama until March 26, 2013, ive days before the government was slated to
lose its authority to collect and disburse funds.
7.6.4 Policy Regime
Energy policy is implemented at both the federal and state level. he US
Department of Energy is responsible for coordinating federal energy policy.
A key function and indeed a key reason for the formation of the department
back in 1977 has been nuclear power oversight. here is an undersecretary
of energy for nuclear security who oversees the National Nuclear Security
Administration. Annually, this branch of the department receives about
one-third of the total Department of Energy annual budget. he depart-
ment also includes the Oice of Energy Eiciency and Renewable Energy,
the Oice of Fossil Energy, the Oice of Science, the Energy Information
Administration (EIA), the Federal Energy Regulatory Commission (FERC),
and numerous laboratories and research centers scattered across the nation.
It employs about 16,000 people, and manages an elaborate network of 24
national laboratories that employ a further 60,000.
87
It is responsible for
over 65% of all energy related federal expenditures and had a 2012 budget
of US$30.6 billion.
In regard to federal governance of the electricity sector, FERC is the key
agency for regulatory oversight. It has jurisdiction over interstate electric-
ity sales, wholesale electricity rates, and hydroelectric project licensing, to
name but a few important areas. he Energy Policy Act of 2005 expanded
the authority of FERC to allow it to draft and impose regulations to enhance
national grid resilience. his included granting additional authority over the
transmission and wholesale pricing of electricity across state borders. FERC
also has the authority to prosecute entities that violate FERC directives.
