Administration Releases National Energy Policy

Executive Orders Charge Federal Agencies with Energy-Related Duties

Kristen M. Fletcher, J.D., LL.M.
Yoshiyuki Takamatsu, 2L

In May 2001, the Bush Administration released the National Energy Policy and two executive orders revealing the administration’s priorities in energy development for the nation. Citing a domestic energy crisis defined by a “fundamental imbalance between supply and demand,” the Policy declares that this imbalance “will inevitably undermine our economy, our standard of living, and our national security.”1 The Policy consists of the findings and recommendations made by the National Energy Policy Development Group established by the President in his second week in office. The two Executive Orders that followed the Policy are aimed at assessing the effects of federal regulations on energy-related projects and at accelerating the completion of those projects. While the Administration refers to the Policy as a long-term, comprehensive strategy, it has been criticized for its emphasis on increased fossil fuel and nuclear power development with little focus on energy conservation methods.

The National Energy Policy consists of eight chapters (see summary, page 3) which focus on encouraging energy infrastructure modernization by reducing regulatory hurdles. The Plan also proposes to reduce dependence on foreign energy sources by increasing exploration and production of domestic energy sources, including oil, natural gas, coal, nuclear, and renewable energy. Asserting the efficiency and environmental compatibility of modern drilling technologies, the Policy calls for oil and natural gas development on federally owned lands, including the Gulf of Mexico and the Arctic National Wildlife Refuge in Alaska.

The National Energy Policy Development Group, comprised primarily of Cabinet members, recommended that President Bush issue two executive orders to expedite the Policy suggestions. Shortly after the release of the Energy Policy, Bush issued Executive Order 13211 which requires federal agencies to submit a detailed “Statement of Energy Effects” when they undertake “significant energy actions.”2 This statement must consist of an agency’s determination of (1) expected adverse effects on energy supply, distribution, or use when a proposed rule or regulation is implemented, and (2) reasonable alternatives to the action and the effects of these alternatives. A federal action is considered significant, and therefore must be accompanied by the statement of energy effects, when it may lead to a rule or regulation that may have “material effects” to the economy and society and is likely to have a significant adverse effect on energy, or is a federal action that is specifically designated as significant.

Executive Order 13212 proposes to expedite the increased supply and availability of energy to the Nation by requiring executive departments and agencies to speed up their review of permits or take necessary actions to accelerate the completion of energy-related projects that will increase the production, transmission, or conservation of energy.3 The Order establishes an interagency Task Force to ensure federal agencies set up appropriate mechanisms (e.g., by standardizing certain information needs, sharing information received, and integrating required processes and reviews) to coordinate federal, State, tribal, and local permitting activity in regions where increased activity is expected. The Department of Energy will administer the Task Force.

The Energy Policy has been largely criticized because of its emphasis on the domestic energy development and its potential adverse effects to the environment, and its recommendations are resulting in congressional dissatisfaction. In June and July, the Republican-controlled House of Representatives went on record opposing drilling off the Florida coast and new oil, gas and coal exploration in millions of acres of national monuments, crimping President Bush’s efforts to increase U.S. oil production.4 The measure was an amendment to an Interior Department spending bill and will postpone new leasing arrangements for offshore drilling in the Gulf of Mexico until April 1, 2002. At press time, the hotly contested Lease Sale 181 in the Gulf of Mexico had been reduced from 6 million acres to 1.5, removing tracts that came as close as 17 miles to Pensacola, Florida. The Senate is considering blocking the sale for a year which would allow for further negotiation. Water Log will cover the upcoming energy debate in the Gulf of Mexico in future issues.

ENDNOTES
1. National Energy Policy Development Group, National Energy Policy, at viii (2001) (available online at http://www.whitehouse.gov/energy/).
2. Exec. Order No. 13,211, 66 Fed. Reg. 28,355 (May 22, 2001).
3. Exec. Order No. 13,212, 66 Fed. Reg. 28,357 (May 22, 2001).
4. H. Res. 174, 104th Cong. (2001).