America's Domestic Energy Policy - History and Approaches to Reform
Many Americans associate debates about energy with recent attempts to introduce clean and renewable fuels, while making them viable on a large scale. However, regulation, direction, and control of energy--in terms of production, distribution, consumption, conservation, and security--garnered intense interest far earlier in the United States than the last several decades, particularly gaining steam with the expansion of the oil industry around the turn of the twentieth century.
During the 19th century, coal initially formed the foundation for American industrialization. Between 1850 and 1900, coal's percentage of American energy consumption rose from 10 to 70 percent. After the opening of the world's first hydroelectric power plant on the Fox River in Appleton, Wisconsin in 1882, hydro-power also grew into a major player. Initially, it increased its contribution to electrical generation in the U.S. from 40% during the early 1900s to nearly 75% in some regions by the 1940s. Hydroelectric has since shrunk significantly in its contribution to U.S. energy needs as has coal, though coal still plays a major role. Petroleum now stands as the major source for American energy consumption with a roughly 37% market share.
Oil was developed as an affordable source of energy during the mid- to late 19th century, with the aid of successful businessmen such as John D. Rockefeller. His success, however, ignited the ire of many, including leaders such as Teddy Roosevelt, and government intervention was quickly sought to break up the alleged monopolistic tendencies of Standard Oil.
Further government regulation and promotion of energy sources was encouraged under Franklin Roosevelt during the days of the Great Depression. Declaring that America was "most certainly backward in the use of electricity," FDR specifically promoted the use of electrical energy by signing a bill which sought to bring electricity into the homes of many rural farmers. While suppressing private industry's abilities to electrify the country, FDR had the federal government take much of the lead in electrification.
Seven years later, after focused governmental attention on energy policy (including the creation of organizations like the Rural Electrification Administration and the Tennessee Valley Authority), America was using more electricity per capita than any other nation and FDR began urging conservation: "Our energy resources are not inexhaustible, yet we are permitting waste in their use and production. In some instances, to achieve apparent economies today, future generations will be forced to carry the burden of unnecessarily high costs and to substitute inferior fuels for particular purposes." He would not be the last president to advocate against energy gluttony.
With the end of World War II, President Truman, albeit acknowledging its potential for destruction, considered the development of nuclear power "more revolutionary ... than the invention of the wheel, the use of metals, or the steam or internal combustion engine." Congress subsequently passed the Atomic Energy Act, a law which sought to use atomic energy to "improv[e] the public welfare, increase … the standard of living, [and] strengthen … free competition in private enterprise." But the distrust in the safey of nuclear energy has thus far prevented it from comprising a large chunk of American energy consumption.
The energy crises of the 1970s prompted leaders such as President Jimmy Carter to argue that America was “running out of gas and oil,” and to urge a policy of “strict conservation” and the implementation of “renewable energy sources.” Energy policy now predominantly focused on protecting the environment, reigning in energy use, and making alternative energy options viable--aims in which the newly created Department of Energy would seek to play a vital role.
Reagan criticized Carter's approach, claiming that America was an "energy-rich" nation that needed to focus on producing more of it rather than taxing and regulating it. Bush, Sr., too, sought to increase domestic energy production, although more for security reasons, particularly of "environmentally sound and cleaner fuels like ethanol, methanol, electricity, propane, natural gas, and cleaner gasoline."
But for the subsequent administrations of Bill Clinton, George W. Bush, and Barack Obama increasing public concerns over the many costs of fossil fuels, environmental impacts (particularly global warming) of energy production, limitations on the use of fossil fuels, and the quest for clean, renewable energy have become the sine qua non of American domestic energy policy.
Today, discussions about American energy policy center on our dependence on oil; the disappearance of fossil fuels; means of fighting global warming such as the Kyoto Protocol and cap and trade; ways to facilitate transitions toward alternative sources of energy, such as ethanol, wind, and solar; special interest maneuverings, and logistical challenges in creating and enforcing cohesive policies across multiple government agencies.
Debates also focus on the costs and benefits of taxpayer-funded subsidies for various forms of energy. According to the Energy Information Administration, subsidies more than doubled, from $8.2 billion in 1999 to $16.6 billion in 2007. "Tax expenditures have more than tripled since 1999, rising from $3.2 billion that year to more than $10.4 billion in 2007." The main beneficiaries of these subsidies have been renewables, refined (i.e. clean) coal, natural gas, and oil.
This library section traces the history of America’s domestic energy policies, and offers a variety of commentary and research on various approaches to energy issues across the political landscape.
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