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Table 2.1 Value of US trade in crude oil, petroleum products, natural gas and electricity with Canada and Mexico (USD in millions), 2017

Note: Electricity trade between Mexico and the United States is relatively small, and US Census data do not include the values of these imports and exports, according to a US Census official.

Source: US Government Accountability Office (2018), North American Energy Integration: Information about Cooperation with Canada and Mexico and among U.S. Agencies, www.gao.gov/assets/700/693644.pdf

Institutions

At the national level, all three branches of government play a role in developing and implementing energy policy (USAGov, 2019).

Congress has sole authority to pass federal legislation, including on energy, which usually directs federal agencies to implement it. Any senator or representative can sponsor a bill, after which it is considered in relevant committees. A number of Congressional committees have authority over developing energy policy, though energy policy usually originates from the Senate Committee on Energy and Natural Resources in the upper chamber and the House Committee on Energy and Commerce in the lower chamber. Following a successful committee vote, the entire chamber still needs to vote on a bill before it can advance.

Within the executive branch, a number of federal agencies, commissions and advisory offices to the president are involved in developing, co-ordinating and implementing energy policy. Among White House Executive Offices, nearly all have input into charting an administration’s course on energy and climate change, including:

The Council of Economic Advisers provides the president with objective advice on domestic and international economic policies, including on matters related to energy (White House, 2019a).

The Council on Environmental Quality (CEQ) was created under the National Environmental Policy Act in 1970 to incorporate environmental considerations into the operations and mandates of federal agencies (White House, 2019b).

The National Security Council consists of a group of advisers whom the president consults on national security issues, which can include energy and climate change matters (White House, 2019c).

The Office of Management and Budget (OMB) directs the budgetary activities for federal agencies and advises the president on financial aspects of policy and administrative functions, including for energy policy and regulation (White House, 2019d).

The Office of Science and Technology Policy (OSTP) was established by Congress in 1976 to advise the president on scientific and technological issues as they relate to the economy, national security, health, foreign relations and the environment. The OSTP

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supports the OMB’s annual review of federal research and development (R&D) budgets and provides scientific and technological analysis to the president on major policies and plans (White House, 2019e).

Among federal departments, the Department of Energy (DOE) has the broadest influence on energy policy, though other agencies and departments play equally significant roles in various areas of the energy landscape (DOE, 2019a).

The DOE oversees the country’s nuclear energy capabilities, nuclear non-proliferation activities, strategic reserves of oil, and clean energy R&D initiatives. The DOE also has oversight over the country’s national labs. Within the DOE, a number of offices have responsibility over various energy programmes under the department’s purview, including:

Advanced Research Projects Agency – Energy promotes early-stage energy technologies that are too nascent to attract private investment, but are considered to have strong potential to shake up the way energy is produced, stored and consumed.

The Loan Programs Office oversees over USD 40 billion in loans and loan guarantees to support large-scale energy infrastructure projects within the United States.

The Office of Cybersecurity, Energy Security, and Emergency Response (CESER) was established in 2018. As the Sector-Specific Agency for the energy sector, DOE is charged with securing the nation’s energy infrastructure against all threats and hazards, both manmade and natural, including cyber. CESER works closely with other federal agencies and private-sector partners to prepare for, respond to and recover from all hazards and threats, including events of a cyber nature, to the US energy system.

The Office of Energy Efficiency and Renewable Energy (EERE) is tasked with supporting US leadership in the area of renewable energy through an R&D portfolio. The DOE estimates that taxpayer-funded investments of USD 12 billion have already resulted in over USD 230 billion in net benefits to the US economy. Technological areas of focus include sustainable transportation technologies, renewable power, energy efficiency, renewable energy manufacturing, grid integration of renewable energy sources and federal agency sustainability initiatives. The current work of EERE is directed by its 2016-2020 Strategic Plan and Implementing Framework.

The Office of Environmental Management specifically focuses on environmental cleanup from nuclear weapons production and the government’s nuclear energy research, including management of radioactive waste and spent nuclear fuel.

The DOE’s Office of Fossil Energy (FE) oversees all federal research, development and demonstration related to fossil fuel production and consumption. Areas of focus include advanced power generation; power plant efficiency; water management; carbon capture, utilisation and storage (CCUS); and unconventional oil and gas production. FE has a regulatory role over the imports and exports of natural gas, including liquefied natural gas (LNG), from the United States, via delegated authority under the Natural Gas Act. The office also oversees the country’s emergency response tools in the event of a disruption to energy supplies, specifically the Strategic Petroleum Reserve (SPR) and the Northeast Home Heating Oil Reserve.

The Office of Indian Energy Policy and Programs funds and implements programmes that help American Indian tribes and Alaska Native villages with energy development and access.

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 The Office of Legacy Management was established in 2003 to manage the environmental legacy of World War II and the Cold War, including by cleaning up radioactive, chemical and hazardous materials from over 100 sites across the United States.

 The Office of Nuclear Energy (NE) advances nuclear power to boost the country’s energy, environmental and national security goals. NE is guided by three research objectives:

 enhancing the long-term viability and competitiveness of the existing US nuclear fleet  developing an advanced reactor pipeline

 implementinginfrastructure. and maintaining national nuclear strategic fuel cycle and supply chain

The DOE’s Office of Science is tasked with leading federal government efforts to support scientific research on energy. In this capacity, the Office of Science has authority over the operations of all the country’s national labs. But the office’s reach expands well beyond national labs to support research at the state level as well as in private universities and research institutions. The research capabilities include direct support to scientific research as well as direct support of the development, construction and operation of scientific facilities.

The Federal Energy Regulatory Commission (FERC) is an independent commission under the DOE that is responsible for ensuring safe, reliable and secure energy supply to consumers (FERC, 2019a). In this regard, FERC regulates the interstate transmission of electricity, natural gas and oil. FERC is also tasked with regulating the operation of wholesale electricity markets. The commission is responsible for approving interstate natural gas pipelines as well as hydro projects and LNG export terminals (FERC, 2019b).

The United States, under the authority of the DOE, also administers four federal Power Marketing Administrations (PMAs), which operate and sell power from federally owned hydropower facilities in 34 states. The four PMAs are Bonneville Power Administration, Western Area Power Administration, Southeastern Power Administration and Southwestern Power Administration.

Other executive departments and agencies that are crucial to implementing energy policy are:

The Environmental Protection Agency (EPA) was established in 1970 and is tasked with protecting human health and the environment, as directed by Congressional legislation (EPA, 2019a). The agency plays a central role in developing environmental regulations across all sectors. The EPA establishes regulations through “notice and comment” rule making under which it first issues draft proposals, receives public comment and then issues final rules. Repealing or revising existing regulations must also undergo a similar procedure.

The Department of Transportation has broad oversight over the transportation sector, including implementing fuel efficiency standards for automobiles through the National Highway and Transportation Safety Administration (U.S. Department of Transportation, 2019). The Pipeline and Hazardous Materials Safety Administration creates and implements safety and environmental standards for energy pipelines.

The Department of the Interior regulates all energy development on federal lands, including oil and gas, coal, and renewables (U.S. Department of the Interior, 2019). In this capacity, the Interior Department holds federal auctions for offshore energy leases in the Outer Continental Shelf (except for areas defined as falling under state jurisdiction)

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as well as on onshore federal lands. Environmental oversight over energy development on federal lands also falls under the Interior Department’s jurisdiction. The Interior Department’s Bureau of Land Management (BLM) overseas all leasing and regulation for onshore federal lands (BLM, 2019). Following the 2010 Deepwater Horizon oil spill, offshore regulation was split between two agencies: the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. The Bureau of Ocean Energy Management overseas offshore oil, gas and wind leases in the Outer Continental Shelf, while the Bureau of Safety and Environmental Enforcement develops and enforces environmental and safety regulations for offshore drilling (Bureau of Ocean Energy Management, 2018; Bureau of Safety and Environmental Enforcement, 2019).

The Nuclear Regulatory Commission is an independent government agency that regulates civil nuclear power plants and nuclear materials, including licensing, inspection and enforcement of safety regulations.

The US Army Corps of Engineers is a federal agency under the Department of Defense that has regulatory oversight over energy infrastructure that is sited in the country’s navigable waters.

The Department of State conducts international relations for the federal government, including representing the United States in international energy forums such as the IEA and United Nations Framework Convention on Climate Change (UNFCCC) (U.S. Department of State, 2019). The State Department’s Bureau of Energy Resources is tasked with overseeing international energy policy initiatives with objectives to:

Ensure economic and energy security for the United States and its allies and partners.

Remove barriers to energy development and trade.

Promote best practices regarding transparency and good governance.

The Department of Homeland Security is charged with protecting the nation’s critical infrastructure, including hydroelectric dams and the civil nuclear energy fleet.

The judicial branch also plays an important role in energy policy. Given that the judicial branch is tasked with interpreting the US Constitution, the courts review energy policies and regulations within the context of specific legal cases or suits to ensure they are compliant with the country’s laws. In recent years, a number of environmental regulations, in particular, have been challenged in the courts.

The federal structure of government in the United States affords states and local governments considerable scope in enacting energy policy as well. In particular, states have a large degree of oversight over energy development and transit within their territories (except for federal lands), though still need to comply with federal environmental standards. The federal government also has sole regulatory oversight over hydro and nuclear power projects. Power plants require regulatory approvals from the respective state in which they are situated, while oil pipelines require regulatory approval from each state they traverse. In contrast, interstate gas pipelines are regulated by FERC, though in many cases still require state environmental and water permits. States also have broad leeway to set mandates in areas such as greenhouse gas (GHG) reduction, efficiency and renewables.

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