Energy Policy: 114th Congress Issues

Congressional research reportSep 30, 2016

Ask Donna

What actually matters in this document.

Text

Energy Policy: 114th Congress Issues

(name redacted)

Acting Deputy Assistant Director/RSI

September 30, 2016

Congressional Research Service

7-....

www.crs.gov

R42756

Energy Policy: 114th Congress Issues

Summary

Energy policy in the United States has focused on three major goals: assuring a secure supply of

energy, keeping energy costs low, and protecting the environment. In pursuit of those goals,

government programs have been developed to improve the efficiency with which energy is

utilized, to promote the domestic production of conventional energy sources, and to develop new

energy sources, particularly renewable sources.

Implementing these programs has been controversial because of varying importance given to

different aspects of energy policy. For some, dependence on imports of foreign energy,

particularly from the Persian Gulf, is the primary concern; for others, the continued use of fossil

fuels, whatever their origin, is most important. The contribution of burning fossil fuels to global

climate change is particularly controversial. Another dichotomy is between those who see

government intervention as a positive force and those who view it as a necessary evil at best, to

be restricted as much as possible.

In the 114th Congress, both the House and Senate are considering broad energy legislation, as well

as specific topics of key interest. On April 20, 2016, the Senate passed S. 2012, the Energy Policy

and Modernization Act. On December 3, 2015, the House passed H.R. 8, the North American

Energy Security and Infrastructure Act of 2015. On May 25, 2016, the House passed an amended

version of S. 2012 which contains the text of H.R. 8, as well as the text of several other energy

and natural resources-related bills. The conference committee met for the first time on September

8. Both bills would address a variety of energy topics, including energy efficiency in federal

buildings, data centers, manufacturing, and schools; water conservation/efficiency; electric grid

cybersecurity; and review of the Strategic Petroleum Reserve (SPR). The House bill also includes

topics such as electric grid physical security and study of electricity markets; the Senate bill also

includes provisions on helium and critical minerals, and electric grid energy storage, and loan

programs.

Many energy topics were also addressed at the end of 1st Session of the 114th Congress as part of

the FY2016 Consolidated Appropriations Act (P.L. 114-113). Among other provisions, the act

included two major energy provisions:

Repeal of the limitation on exports of U.S.-produced crude oil under the Energy

Policy and Conservation Act; and

Extension of several energy tax incentives, including the production tax credits

(PTC) for wind and solar electricity, electric vehicle tax credits, and incentives

for advanced biofuel production.

Early in the first session of the 114th Congress, the House and Senate passed the Keystone XL

Pipeline Approval Act (S. 1), which was vetoed by President Obama on February 24, 2015. The

bill would have immediately approved this controversial pipeline project. On November 6, 2015,

the Department of State determined that the pipeline would “not serve the national interest of the

United States,” and rejected TransCanada’s permit application.

Congressional Research Service

Energy Policy: 114th Congress Issues

Contents

Introduction ..................................................................................................................................... 1

Policy Goals .................................................................................................................................... 2

Conservation and Energy Efficiency ......................................................................................... 2

Increasing Domestic Supply ..................................................................................................... 2

Production of Oil ................................................................................................................ 2

The Price of Oil and Gasoline ............................................................................................. 3

Natural Gas ......................................................................................................................... 4

Electric Power Production .................................................................................................. 4

Replacing Conventional Energy Sources .................................................................................. 5

Energy Legislation........................................................................................................................... 5

Earlier Legislation ..................................................................................................................... 5

Legislation in the 114th Congress .............................................................................................. 6

Comprehensive Energy Legislation .................................................................................... 6

Regulation of Power Plant Emissions and Global Climate Change ................................... 6

U.S. Crude Oil Exports ....................................................................................................... 7

Energy Tax Incentives ......................................................................................................... 7

Keystone XL Pipeline ......................................................................................................... 7

Hydraulic Fracturing ........................................................................................................... 7

Vehicle Fuel Economy (CAFE)/Greenhouse Gas (GHG) Standards .................................. 8

Contacts

Author Contact Information ............................................................................................................ 8

Acknowledgments ........................................................................................................................... 8

Congressional Research Service

Energy Policy: 114th Congress Issues

Introduction

U.S. energy policy since the Arab oil embargo in the 1970s has been aimed at a long-term goal

with three major dimensions: to assure a secure supply of energy, to keep energy costs low

enough to meet the needs of a growing economy, and to protect the environment while producing

and consuming that energy. A continuing theme during this period has been that dependence on

imported energy, particularly oil for the transportation sector, impedes that aim in all three

dimensions. But the importance given to import dependence varies. For some, import dependence

is the primary concern; for others, particularly those focused on environmental issues, it is a

symptom of a general crisis that arises from indiscriminate consumption of fossil fuels. A

particularly controversial aspect of the debate is the issue of global climate change, because

burning fossil fuels produces large amounts of carbon dioxide, a greenhouse gas.

Like the goals of energy policy, the means of achieving them have three dimensions: reducing

consumption by increased energy efficiency; increasing domestic production of conventional

energy sources, particularly oil and natural gas; and developing new sources of energy,

particularly renewable energy and renewable fuels, that can replace oil and other fossil fuels.

Pursuing the goals of energy policy has been complicated by the diversity of energy consumption

and supply in the United States. On the consumption side, there are three major sectors:

residential/commercial, industrial, and transportation. On the supply side, the primary sources

have traditionally been fossil energy: petroleum, natural gas (and “natural gas liquids” such as

propane and butane), and coal. Electricity, which is both an energy source and a consumer of

energy, has replaced some fossil fuels: about 75% of the energy consumed by the

residential/commercial sector is electricity, and industrial energy consumption is about 35%

electricity. But in the transportation sector, petroleum has remained dominant. Only in the past

few years has corn-derived ethanol become a significant transportation fuel, replacing around

10% of gasoline consumption.

A diverse spectrum of generating sources is used to produce electricity. Coal for many years

supplied half the electricity generated nationally. In recent years its share has declined; it was

about 33% in 2015. Generation by natural gas has risen in importance, supplying nearly an equal

percentage in the same year. To those who regard global climate change as an urgent issue, this

trend is important because generating electricity from coal emits roughly twice the carbon dioxide

per kilowatt-hour than generating from natural gas. Nuclear fission supplies about 20%,

hydropower less than 10%. Petroleum, an important generating fuel in the 1970s and early 1980s,

now contributes less than 1% of electricity generation. A surge of construction of wind-powered

generating capacity has brought its share of total generation to almost 5%.

An issue that cuts across all these factors is the role of government. How much does and should

government policy affect energy markets? A fundamental dichotomy that lies beneath many

individual policy debates, not only in energy issues, is between those who see government

intervention as a positive force, and those who view it at best as a necessary evil to be restricted

as much as possible.

Congressional Research Service

1

Energy Policy: 114th Congress Issues

Policy Goals

Conservation and Energy Efficiency

Reducing energy consumption by conservation and by increased efficiency of energy use has

been a major component of policy since the first energy crisis in the 1970s. Most prominent has

been setting fuel economy standards for automobiles and trucks.1 Federal research and

development programs in energy-efficient technologies have had continued support over many

years, pursuing improvements in building technology, in industrial processes, and in vehicle

efficiency—the last including battery designs that have been used in producing hybrid vehicles.2

Development of “Smart Grid” technologies in electric power distribution systems to encourage

more efficient use of electricity has received much recent attention. Grant programs to improve

and “weatherize” existing residences have received continued funding, but like all such programs

they have become controversial in the current tight budget environment.3 Standards for home

appliances such as air conditioners, refrigerators, and washing machines are another policy

program that has had continued support, and some controversy. A requirement to raise efficiency

levels in light bulbs has been an issue for several years.4

Increasing Domestic Supply

Production of Oil

With dependence on oil imports probably the most high-profile energy policy issue, the question

of domestic oil production has a long history of controversy. Recent years have seen a jump in

domestic production of crude oil, mostly light crude oil from unconventional supplies in the

Bakken formation in North Dakota and the Eagle Ford formation in Texas. The increase in

unconventional oil supply has raised concerns about the environmental effects of hydraulic

fracturing and other advanced extraction techniques. Increased production has also reduced U.S.

crude oil imports, and led some stakeholders to argue limits on exports of U.S.-produced crude, in

place since the 1970s, should be repealed; as part of the FY2016 Consolidated Appropriations Act

(H.R. 2029), this provision of the Energy Policy and Conservation Act was repealed on December

18, 2015.

Much exploration and development of new oil resources involves federal land, particularly on the

outer continental shelf (OCS) and in Alaska, and environmental concerns have led to extended

moratoria on leasing for many areas.5 The Deepwater Horizon oil spill in the Gulf of Mexico in

2010 added a further dimension to the question of OCS leasing.6 In recent years, development of

Canadian oil sands resources, and of tight oil deposits in the United States, has added further

1

For details, see CRS Report R42721, Automobile and Truck Fuel Economy (CAFE) and Greenhouse Gas Standards,

by (name redacted), (name redacted), and (name redacted)

.

2

See CRS Report R44465, Energy and Water Development: FY2017 Appropriations, by (name redacted)

.

3

See CRS Report R42147, DOE Weatherization Program: A Review of Funding, Performance, and Cost-Effectiveness

Studies, by (name redacted)

.

4

See CRS Report R42028, Lighting Industry Trends, by (name redacted)

.

5

See CRS Report R42432, U.S. Crude Oil and Natural Gas Production in Federal and Nonfederal Areas, by (name

redacted) .

6

See CRS Report R41684, Enacted and Proposed Oil Spill Legislation in the 112th Congress, by (name redact

ed)

.

Congressional Research Service

2

Energy Policy: 114th Congress Issues

controversy over the possible environmental effects of their production and transportation.7

Before TransCanada’s permit application was rejected in November 2015, the proposed Keystone

XL pipeline to bring Canadian crude to Texas refineries was particularly controversial.8 More

recently, controversy has arisen over the siting of the Dakota Access Pipeline, a 1,172-mile

project that would carry North Dakota crude oil to southern Illinois.9

For some, increasing production of oil is in principle to be avoided, since it merely postpones the

replacement of fossil fuels by renewable energy and makes the transition more difficult. Others

are particularly opposed to development of oil sands, on the grounds that it produces more

greenhouse gases than conventional oil production.10

The Price of Oil and Gasoline

Since 2004, oil and gasoline markets have been highly volatile. Throughout this period some have

argued that prices were being driven not by the cost of producing the resources but by speculation

and unregulated manipulation of the markets. The Dodd-Frank Wall Street Reform Act of 2010

(P.L. 111-203) aimed to address these concerns, but its application and enforcement remain

controversial.11 The issue is complicated because oil prices are largely determined in a world

market beyond the reach of domestic regulation.

An additional issue involving oil and gasoline prices is the role of the Strategic Petroleum

Reserve (SPR), which was set up after the Arab oil embargoes to address temporary interruptions

in the supply of oil. In principle releases from the SPR are limited to cases in which a physical

lack of supply exists, but some have argued that it can be used to dampen surges in world oil

prices even when current supply is adequate to meet demand. The June 2011 release of 30 million

barrels from the SPR in response to the Libyan civil war has been deemed by some critics as such

an attempt to influence the market when U.S. supplies were adequate.12

Since June 2014, oil and gasoline prices have remained relatively low. In the last week of June

2014, crude oil prices were above $100 per barrel; at the end of December 2014 prices were

below $60 per barrel, and have remained below $50 per barrel since August 2015. Similarly,

national average gasoline prices dropped from roughly $3.80 to around $2.20, and have remained

below $2.50 since September 2015. The drop in crude oil and refined product prices has led to

savings for U.S. consumers and businesses, but has also raised questions about the profitability of

U.S. and foreign oil suppliers. Whether prices remain low over the long term will affect the oil

industry as well as nations that rely heavily on oil revenues.

7

See CRS Report R43148, An Overview of Unconventional Oil and Natural Gas: Resources and Federal Actions, by

(name redacted) and (name redacted) .

8

See CRS Insight IN10393, The State Department’s Final Decision on the Keystone XL Pipeline, by n( ame redacted)and

CRS Report R42611, Oil Sands and the Keystone XL Pipeline: Background and Selected Environmental Issues,

coordinated by (name redacted)

.

9

See CRS Insight IN10567, Dakota Access Pipeline: Siting Controversy, by (name redacted)

.

10

See CRS Report R42537, Canadian Oil Sands: Life-Cycle Assessments of Greenhouse Gas Emissions, by (name redac

ted)

.

11

See CRS Report R41398, The Dodd-Frank Wall Street Reform and Consumer Protection Act: Title VII, Derivatives,

by (name redacted) and (name red acted)

.

12

See CRS Report R42460, The Strategic Petroleum Reserve: Authorization, Operation, and Drawdown Policy, by

(name redacted)

.

Congressional Research Service

3

Energy Policy: 114th Congress Issues

Natural Gas

Unlike the world oil market, in which events abroad quickly affect prices locally, the natural gas

market is largely domestic. Except for about 5% net imports from Canada by pipeline, 2014 gas

consumption, 26.7 trillion cubic feet, was almost entirely produced in the United States.

Production since 2010 has increased sharply, largely as a result of development of tight shale

formations. As with tight oil production, shale gas development has brought environmental

concerns about the effects on ground water of hydraulic fracturing and horizontal drilling. The

need for gathering infrastructure and pipeline construction from new fields is also an issue.

With gas production up and demand not growing as quickly, the likelihood of increasing exports

of liquefied natural gas (LNG) has increased. LNG requires complex and expensive processing

and loading facilities that have been controversial in many of the locations where they have been

proposed. There is also the prospect of controversy over the question of exporting energy

resources such as oil and natural gas, and their effects on prices, supply, and energy security.13

Electric Power Production

The electric power sector since the mid-1980s has been essentially independent of the question of

oil import dependence, since oil-generated electricity is a very small part of the generation mix.

Nevertheless, electricity’s central role in America’s energy mix makes it subject to numerous

controversies.

A major consideration is the role of the coal industry. Roughly 1 billion tons of coal are consumed

in the United States each year, about 93% of it burned to produce electricity. Initiatives by the

Environmental Protection Agency (EPA) that would impose tighter emissions restrictions on coalfired power plants are particularly controversial. Limits on cross-state emissions of sulfur dioxide

and nitrogen oxides, emissions of mercury and other hazardous pollutants, and regulation of

greenhouse gas emissions, among other proposed and finalized regulations, have been

characterized by critics as a regulatory “train wreck” that would impose excessive costs and lead

to plant retirements that could threaten the adequacy of electricity capacity (i.e., reliability of

supply) across the country, although some in the electric power industry consider those concerns

overstated.14 Further, because of low natural gas prices, retirement of some coal plants in favor of

natural gas would be expected regardless of regulatory factors.

Arguably the most controversial regulatory action has been EPA’s Clean Power Plan (CPP). On

August 3, 2015, EPA finalized regulations to limit carbon dioxide (CO2) emissions in the electric

power sector. The CPP final rule requires states to submit plans that would reduce CO2 emissions

or emission rates from existing fossil fuel electricity generating units. EPA estimates that in 2030,

the CPP will result in CO2 emission levels from the electric power sector that are 32% below

2005 levels.

The CPP is the subject of ongoing litigation in which a number of states and other entities have

challenged the rule. On February 9, 2016, the Supreme Court stayed the CPP for the duration of

the litigation. The CPP therefore currently lacks enforceability or legal effect, and if the rule is

ultimately upheld, at least some of the deadlines would have to be delayed. On September 27,

13

See CRS Report R42074, U.S. Natural Gas Exports: New Opportunities, Uncertain Outcomes, by (name redacted) et

al. and CRS Report R43442, U.S. Crude Oil Export Policy: Background and Considerations, by (name redacted) et al.

14

See CRS Report R41914, EPA’s Regulation of Coal-Fired Power: Is a “Train Wreck” Coming?, by (name red

acted) and (name redacted)

.

Congressional Research Service

4

Energy Policy: 114th Congress Issues

2016, the U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) heard oral

arguments on the case.

Nuclear power is also a continuing issue. Although subject to continuing opposition over

questions of safety, disposal of radioactive waste, and possible proliferation of nuclear weapons,

nuclear fission has gained support because it does not emit greenhouse gases. However, cost

considerations in the face of increasing natural gas production, and safety concerns enhanced by

the tsunami-caused accident at Japan’s Fukushima nuclear plant in March 2011, have put further

expansion of nuclear power in question.15

Replacing Conventional Energy Sources

The third path toward reaching the goals of energy policy is to develop alternative sources of

energy to replace fossil fuels. As noted, reducing the need for imported oil has been a major

feature of energy policy, and congressional mandates have led to increased consumption of

ethanol and other biofuels. However, essentially all fuel ethanol currently is produced from corn,

potentially putting pressure on food production and food prices. The technology for producing

ethanol from non-food sources (including cellulosic biomass) faces serious technological barriers.

Another transportation alternative, long considered but only slowly adopted, has been natural gaspowered vehicles. Recent increases in natural gas production, noted above, have made this option

appear more attractive, although developing a supply infrastructure and overcoming technological

and cost difficulties continue to present barriers to widespread adoption.

For many participants in the energy debate, replacing fossil fuels has been a goal not limited to

the transportation sector, however. Electricity production by renewable energy sources—wind

power, concentrating solar power, photovoltaic cells, geothermal energy, and biomass—is the

goal of many initiatives: research and development programs, tax benefits, loan guarantees, and

mandates.

The main stimulus for these programs is environmental, including concern about global climate

change, but the prospect of developing new industrial production from expansion of renewable

energy sources has been a significant, if controversial, theme. Even nuclear power, long a target

of environmental concerns, has been considered a viable alternative to fossil energy for electricity

generation, although once again the influx of newly developed natural gas resources has raised

serious questions about the cost competitiveness of new nuclear power generators.

Energy Legislation

Earlier Legislation

Energy policy historically has often been legislated in large, complex bills that deal with a wide

variety of issues, with debate spanning several sessions. The Energy Policy Act of 2005 (EPAct

2005; P.L. 109-58) was the most recent comprehensive general legislation, with provisions and

authorizations in almost all areas of energy policy. EPAct 2005 also set up in DOE the program of

energy project loan guarantees which became a source of controversy and debate following the

bankruptcy of the Solyndra solar system manufacturing facility in 2011.16

15

See CRS Report RL33558, Nuclear Energy Policy, by (name redacted)

.

See CRS Report R42152, Loan Guarantees for Clean Energy Technologies: Goals, Concerns, and Policy Options,

by (n ame redacted)

.

16

Congressional Research Service

5

Energy Policy: 114th Congress Issues

The Energy Independence and Security Act of 2007 (EISA, P.L. 110-140) set new target fuel

economy standards for cars and light trucks of 35 miles per gallon by 2020, and expanded the

renewable fuels standard (RFS) to require 9.0 billion gallons of biofuels in transportation in 2008,

rising to 36 billion gallons by 2022. EISA also included new efficiency standards for appliances

and for light bulbs, the latter being particularly controversial in the 112th Congress.

In the 111th Congress the American Recovery and Reinvestment Act (the “Stimulus” Act, ARRA,

P.L. 111-5) had major energy policy provisions, including expansion of the loan guarantee

program and large increases in funding for renewable energy programs. The Department of

Energy’s Office of Energy Efficiency and Renewable Energy, in addition to the $2 billion

appropriated in the FY2009 regular appropriations bill, received $17 billion in ARRA, of which

$11.5 billion was for grants to states for energy, efficiency, and weatherization programs. The

Office of Electricity Delivery and Energy Reliability, which had historically been funded at about

$150 million per year, received $4.5 billion in ARRA, directed at establishing “Smart Grid”

technology for the electric power industry.

Legislation in the 114th Congress

Comprehensive Energy Legislation

In the second session of the 114th Congress, both the House and Senate are considering broad

energy legislation, as well as specific topics of key interest. On April 20, 2016, the Senate passed

S. 2012, the Energy Policy and Modernization Act. On December 3, 2015, the House passed H.R.

8, the North American Energy Security and Infrastructure Act of 2015. On May 25, 2016, the

House passed an amended version of S. 2012 which contains the text of H.R. 8, as well as the text

of several other energy and natural resources-related bills. The conference committee met for the

first time on September 8.

Both bills would address a variety of energy topics, including energy efficiency in federal

buildings, data centers, manufacturing, and schools; water conservation/efficiency; electric grid

cybersecurity; and review of the Strategic Petroleum Reserve (SPR). The House bill also includes

topics such as electric grid physical security and study of electricity markets; the Senate bill also

includes provisions on helium and critical minerals, electric grid energy storage, and loan

programs. Further, both bills contain major natural resources provisions, including a Title on

forestry management in the House and permanent reauthorization of the Land and Water

Conservation Fund in the Senate.17

Regulation of Power Plant Emissions and Global Climate Change

In June 2013, President Obama released a Climate Action Plan and directed EPA to propose

standards for carbon dioxide emissions from existing power plants by June 2014 and to finalize

the standards a year later. EPA proposed the standards on June 2, 2014, and finalized them on

August 3, 2015. The rule, known as the Clean Power Plan (CPP), sets individual state targets for

average emissions from existing power plants. The CPP set a deadline of September 6, 2016, for

states to submit implementation plans to EPA detailing how they will meet these targets.

However, the CPP is the subject of ongoing litigation in which a number of states and other

entities have challenged the rule, while other states and entities have intervened in support of the

17

For a discussion of major provisions in both bills, see CRS Report R44291, Energy Legislation: Comparison of

Selected Provisions in S. 2012 as Passed by the House and Senate, by (name reda cted)

.

Congressional Research Service

6

Energy Policy: 114th Congress Issues

rule. On February 9, 2016, the Supreme Court stayed the Clean Power Plan for the duration of the

litigation. On September 27, 2016, the U.S. Court of Appeals for the District of Columbia Circuit

(D.C. Circuit) heard oral arguments on the case.

In the 114th Congress several pieces of legislation have been introduced regarding the CPP. In the

first session, both the Senate and House passed S.J.Res. 24, to disapprove the rule under the

Congressional Review Act (November 17 and December 1, 2015, respectively). The President

vetoed the resolution on December 18, 2015. In addition, on June 24, 2015, the House passed

H.R. 2042, the Ratepayer Protection Act of 2015, which would delay implementation of the CPP

and allow states to opt out of the rule. In the Senate, S. 1324, the Affordable Reliable Electricity

Now Act, contains similar provisions.18

U.S. Crude Oil Exports

Some major energy topics were addressed at the end of first session of the 114th Congress as part

of the FY2016 Consolidated Appropriations Act (P.L. 114-113). Among other provisions, the act

repealed the 40-year limitation on exports of U.S.-produced crude oil under the Energy Policy

and Conservation Act. Before the repeal, the United States exported roughly 500,000 barrels of

crude oil per day to Canada. Through the end of June 2016, approximately 29 million barrels total

have been exported to new destinations in the Caribbean, Europe, and Asia.19

Energy Tax Incentives

The FY2016 Consolidated Appropriations Act also extended several energy tax incentives,

including the production tax credits (PTC) for wind and solar electricity, electric vehicle tax

credits, and incentives for advanced biofuel production.

Keystone XL Pipeline

Early in the first session of the 114th Congress, the House and Senate passed the Keystone XL

Pipeline Approval Act (S. 1), which was vetoed by President Obama on February 24, 2015. The

bill would have immediately approved this controversial pipeline project. On November 6, 2016,

the Department of State determined that the pipeline would “not serve the national interest of the

United States,” and rejected TransCanada’s permit application.20

Hydraulic Fracturing

Under provisions of EPAct 2005, EPA does not have regulatory jurisdiction over certain aspects

of hydraulic fracturing. The Fracturing Responsibility and Awareness of Chemicals Act (FRAC

Act, H.R. 1482 and S. 785) would give EPA such jurisdiction under the Safe Drinking Water Act.

The Safe Hydration Is an American Right in Energy Development Act of 2015 (H.R. 1515) would

amend the SDWA to create a new prohibition on hydraulic fracturing unless the party conducting

the operations agrees to comply with new testing and data reporting requirements. The Fracturing

18

For more information, see CRS Report R44341, EPA’s Clean Power Plan for Existing Power Plants: Frequently

Asked Questions, by (name redacted) et al.

19

For more information, see CRS Insight IN10536, U.S. Crude Oil Exports to International Destinations, by (name re

dacted) .

20

For more information, see CRS Legal Sidebar WSLG1436, Obama Administration Rejects Keystone XL Pipeline

Permit Request: Could Congress Nevertheless Approve It?, by (name redacted) and n( ame redacted) .

Congressional Research Service

7

Energy Policy: 114th Congress Issues

Regulations Are Effective in State Hands Act (S. 828) would give states sole jurisdiction to

regulate hydraulic fracturing within their borders, including on federal land.21

Vehicle Fuel Economy (CAFE)/Greenhouse Gas (GHG) Standards

On August 28, 2012, the Obama Administration issued new joint passenger vehicle Corporate

Average Fuel Economy (CAFE) and greenhouse gas (GHG) standards for vehicle model years

(MY) 2017-2025.22 However, while EPA has authority to set GHG standards over an unlimited

time frame under the Clean Air Act, the National Highway Traffic Safety Administration

(NHTSA) is constrained by the Energy Policy and Conservation Act to setting standards in fiveyear increments. Thus, NHTSA has established standards for MY2017-MY2021, and only

proposed standards beyond that. As part of the 2012 rulemaking, the agencies committed to a

“comprehensive mid-term evaluation” in 2017 to assess the progress of the program, revisit costbenefit analyses, and propose new CAFE standards.

At the same time that EPA and NHTSA are preparing for the mid-term evaluation, automakers are

seeking regulatory or legislative changes to limit their potential penalties under the CAFE

program. Because of differences between the two statutes, while some automakers are in

compliance with the GHG standards, they may still potentially face penalties under the CAFE

standards.23

Author Contact Information

(name redacted)

Acting Deputy Assistant Director/RSI

[redacted]@crs.loc.gov , 7-....

Acknowledgments

The report acknowledges the efforts Carl Behrens, who retired in May 2014.

21

For more information, see CRS Report R43152, Hydraulic Fracturing: Selected Legal Issues, by n( ame redacted),

(name redacted), and (name redacted)

.

22

For more information, see CRS Report R42721, Automobile and Truck Fuel Economy (CAFE) and Greenhouse Gas

Standards, by (name redacted), (name redacted), and (name redacted)

.

23

See CRS Insight IN10550, Automakers Seek to Align Fuel Economy and Greenhouse Gas Regulations, by (name redacted)

.

Congressional Research Service

8

EveryCRSReport.com

The Congressional Research Service (CRS) is a federal legislative branch agency, housed inside the

Library of Congress, charged with providing the United States Congress non-partisan advice on

issues that may come before Congress.

EveryCRSReport.com republishes CRS reports that are available to all Congressional staff. The

reports are not classified, and Members of Congress routinely make individual reports available to

the public.

Prior to our republication, we redacted names, phone numbers and email addresses of analysts

who produced the reports. We also added this page to the report. We have not intentionally made

any other changes to any report published on EveryCRSReport.com.

CRS reports, as a work of the United States government, are not subject to copyright protection in

the United States. Any CRS report may be reproduced and distributed in its entirety without

permission from CRS. However, as a CRS report may include copyrighted images or material from a

third party, you may need to obtain permission of the copyright holder if you wish to copy or

otherwise use copyrighted material.

Information in a CRS report should not be relied upon for purposes other than public

understanding of information that has been provided by CRS to members of Congress in

connection with CRS' institutional role.

EveryCRSReport.com is not a government website and is not affiliated with CRS. We do not claim

copyright on any CRS report we have republished.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.