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Lecture #9
Julie King Baylor University Environmental Law
16
Law
Undergraduate 4
05/07/2013

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Term
Energy policy history
Definition
***1973-1978--energy crisis--U.S. imported 38.8% of daily petroleum consumption
***the Organization of Petroleum Exporting Countries (OPEC) cut oil exports to U.S. and Saudi Arabia ended all petroleum shipments until Nixon changed pro-Israel policies
***loss of 2 million barrels/day highlighted U.S. dependency on foreign oil
***Nixon established the Federal Energy Office (FEO) within the White House in 1973 and established the Federal Energy Administration in 1974
***Congress instituted national daylight savings time and 55 mph speed limit to promote energy conservation
***Ford proposed Energy Policy and Conservation Act, which establishes the strategic petroleum reserve
***Carter made major changes--National Energy Plan and created Department of Energy
Term
National Energy Plan (NEP)
Definition
***4 broad objectives
***Institutional reform of federal energy planning
***greater energy efficiency through selective use of market forces and major expansion of regulatory policy
***increase federal spending on research and development of technology for energy conservation and productivity
***to ensure that environmental protection and social equity would be important in these new programs
Term
Energy policy--recent history
Definition
***Reagan and Bush administration's position that energy was abundant
***Reagan tried to abolish the Dept. of Energy, was only able to reduce DOE's authority, reduce spending for conservation, research for renewable energy sources
***Kuwait War brought some attention to our dependence on foreign oil again and renewed interest in national energy policy
Term
Energy policy
Definition
***Bush introduced National Energy Strategy (NES) in 1991, which focused on energy security, energy and economic efficiency, future energy supplies, environmental quality, and expanding scientific research and education
***As part of NES, Bush issued an Executive Order on Federal Energy Management
*energy use in federal buildings was to be reduced by 20% by 2000
*gas use in govt. fleets was to be reduced by 10% by 1995
*all federal agencies had to secure alternative fuel vehicles by 1995
Term
Energy Policy Act (EPAct)
Definition
***a comprehensive law passed in 1992--addresses issues such as renewable fuels, energy and the environment, and global climate change
***attempts to provide a coherent energy policy for the U.S.
***clause allows mortgage incentives for energy efficient homes
***goal was to reduce oil vulnerability, but in 2006, U.S. still imported about 60% of its daily consumption
Term
Clinton's energy policy
Definition
***Clinton signed a series of Executive Orders with goals of reductions in greenhouse gases and energy consumption and solar energy for federal facilities
***included voluntary programs like EnergyStar, Green Power Partnership--a program encouraging the use of green power in homes and businesses
Term
Fuel and Fuel Standards
Definition
***as part of the Energy Policy and Conservation Act of 1975, car and light truck manufacturers are required to meet the CAFE standards, but lobbying by the auto industry has kept fuel standards from increasing
***fuel standards have changed slightly for pickup trucks, minivans, and SUVs (from 20.7 mpg standard), but have not changed for passenger cars--standard is 27.5 mpg
***Obama proposed rules requiring higher fuel economy (and lower CO2 emissoins) standards for automobiles. Under the new rules, new passenger vehicles and light trucks must average 35.5 mpg by 2016
***NHTSA and EPA have issued a Notice of Proposed Rulemaking (NPRM) for Fuel Economy and Greenhouse Gas emissions regulations for model year 2017-2025 light-duty vehicles
Term
National Energy Policy Plans
Definition
***DOE has been drafting National Energy Policy Plans since its creation
***recent plans under Bush II have focused on greater reliance on fossil fuels
***Bush's plan included opening up Alaska's Arctic National Wildlife Refuge for oil and gas drilling
***Energy Tax Incentive Act of 2005 did provide some tax credits for energy efficient vehicles
Term
Energy consumption
Definition
***U.S. consumes about 1/4 of the world's energy production
***residential energy use accounts for 21% of total primary energy demand
***commercial energy use accounts for 1/3 of our energy demands
***transportation accounts for over 1/4
***Bush's 2001 National Energy Policy called for construction of over 1300-1900 new power plants
Term
Energy sources--coal
Definition
***most plentiful fossil fuel (90% of U.S. hydrocarbon reserves)
***supplies 25% of energy needs
***50% of electric power
***coal-fired power plants contribute around 96% of sulfur dioxide emissions, 99% of mercury emissions, 93% of nitrogen oxide emissions, and 88% of CO emissions
***coal mining can have negative environmental effects; Carter enacted Surface Mining Control and Reclamation Act to force mining industry to return land to a level of productivity equal to or greater than before mining
Term
Energy sources--petroleum and natural gas
Definition
***supply over 2/3 of our energy needs
***natural gas produces fewer pollutants and constitutes about 30% of domestic energy production--reserves sufficient to last 20-40 years
***strategic petroleum reserves temporarily protect U.S. if foreign oil were to become unavailable
Term
Oil issues
Definition
***congress passed the Outer Continental Shelf Leasing Act to ensure that states can make decisions about development of submerged land off their shores
***1978 amendments to OCSLA require Secretary of the Interior to establish 5 year leasing program
***In 1990, Bush placed a 10 year moratorium on new leases for the OCS; moratorium was extended by Clinton
***2003 Senate voted to allow Interior to do exploratory drilling; in 2007 Bush proposed a 5 year plan to open up 48 million acres on the OCS to oil and gas drilling
***Coastal Zone Management Act (CZMA) provides financial assistance to states that balance energy development and environmental factors
Term
Oil spills
Definition
***In 1989, Exxon Valdez dumped 11.2 million gallons of oil into Alaska's Prince William Sound
***other small spills occur almost on a yearly basis
***only 30% of all birds and mammals exposed to oil spills survive longer than a year
***Coast Guard is charged with cleaning oil spills
***Carter ordered that all tankers over 20,000 tons be fitted with double hulls and bottoms--was not met by 1990, so Congress passed Oil Pollution Act--new target date for double hulls is 2015
***additional liability is imposed by Clean Water Act
Term
Baker v. Exxon
Definition
***jury awarded $287 million for actual damages and $5 billion for punitive damages (equal to one year's profit by Exxon at the time)
***Exxon appealed, punitive damages reduced to $4 billion, Exxon appealed several times to reduce punitives and ultimately, in a decision issued June 25, 2008, Justice David Souter issued a judgement vacating the $2.5 billion award and remanding the case back to the lower court, finding that the damages were excessive with respect to maritime common law
Term
Oil Pollution Act of 1990
Definition
***each responsible party is liable for removal costs, damage to natural resources, damages for injury to or economic losses from destruction of real or personal property, and lost profits because of the injury or destruction of property or natural resources
***measure of damages includes cost of restoring, rehabilitating, rejecting, or acquiring the equivalent of the damaged resouces; the diminution in value of those resources pending restoration, and reasonable cost of assessing those damages
****liability limits increased to $10 million for ships weighing more than 3,000 gross tons and $75 million for offshore facilities
***Act banned Exxon Valdez--vessels that have spilled more than 1 million gallons of oil after 1989--from entering Prince William Sound
***still largest amount of oil and gas enters environment through runoff--runoff is equivalent to Valdez spilling every 8 months
Term
Deepwater Horizon spill
Definition
***largest maritime spill in history, and was caused by an explosion on the Deepwater Horizon offshore oil platform on April 20, 2010
***most of the 126 workers on the platform were safely evacuated, and a search and rescue operation began for 11 missing workers
***sank in about 5,000 ft of water on April 22, 2010. On April 23, U.S. Coast Guard suspended the search for missing workers, who were all presumed dead
***After a series of failed efforts to plug the leak, BP said on July 15 that it had capped the well, stopping the flow of oil into the Gulf of Mexico for the first time in 86 days
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