Energy laws govern the use and taxation of
energy, both
renewable and
non-renewable. These
laws are the
primary
authorities (such as
caselaw,
statutes, rules,
regulations and
edicts)
related to energy. In contrast,
energy
policy refers to the
policy and
politics of energy.
In the twentieth century, energy law focused mostly on
natural gas regulation, but was expanded to
include other areas of energy regulation as well. It also includes
the legal provision for oil, gasoline, and "extraction
taxes."
International law
There is a growing academic interest in International energy law,
including
continuing legal
education seminars,
treatises,
law reviews, and graduate courses.
Africa
Africa does not have a significant energy law.
Uganda has adopted a new nuclear power law, which it hopes "will boost
technical cooperation between the country and the International
Atomic Energy Agency
," according to "a senior agency
official" from that African
country.
Australia

Energy is big business in
Australia.
Canada
Canada
has an
extensive energy law, both through the confederation and the provinces, especially Alberta
.
These include:
- Alternative Fuels Act ( 1995, c. 20 )
- Cooperative Energy Act ( 1980-81-82-83, c. 108 )
- Energy Administration Act ( R.S., 1985, c. E-6 )
- Energy Monitoring Act ( R.S., 1985, c. E-8 )
- Nuclear Energy Act ( R.S., 1985, c. A-16 )
- Canada Oil and Gas Operations Act ( R.S., 1985, c. O-7 )
- Canada Petroleum Resources Act ( 1985, c. 36 (2nd Supp.) )
- National Energy Board Act ( R.S., 1985, c. N-7 )
- Electricity and Gas Inspection Act ( R.S., 1985, c. E-4 )
There is some academic interest in the energy law of Canada, with
looseleaf periodical services,
monographs,
and consultation with lawyers specializing in that practice,
available.
The
Supreme Court of
Canada
has had issued some Canadian energy case
law.
Canada's energy laws are so extensive and complicated in large part
because of its government-owned energy resources:
Canada and
the Quebec
province
also own extensive hydroelectric
dam facilities, which have generated not only power but
controversy.
China
European Union (outside of UK)
Germany
Germany
's Renewable Energy Law mandates the use
of renewable energy through its
taxes and tariffs. It promotes the
development of renewable energy sources via a system of feed-in
tariffs. It regulates the amount of energy generated by the
producer and the type of renwable energy source. It also creates an
incentive to encourage technological advancements and costs.
The German government has abandoned "its planned phase-out of
nuclear energy to help rein in surging electricity prices and
protect the environment, according to proposals drawn up byan
energy taskforce under Economy Minister Michael Glos." The
German Green Party has opposed nuclear
energy, as well as the
market power
of German utilities, claiming the "energy shortfall" has been
artificially created.
There is significant academic interest in German energy law.
Lithuania
The nation
of Lithuania
has an energy law, Energetikos teisė.
Iraq
Technically, Iraq
has no
energy law, but proposed legislation has been pending for two and a
half years.
Saudi Arabia
Saudi Arabia has some laws
concerning
energy, especially oil and gas
law.
Saudi Arabia
is the largest oil producer in the world and
therefore its energy law has great influence over the world's
overall energy supply.
Under the
Basic Law of Saudi
Arabia, all its oil and gas wealth belongs to the government:
"All Allah's bestowed wealth, be it under the ground, on the
surface or in national territorial waters, in the land or maritime
domains under the state's control, are the property of the state as
defined by law. The law defines means of exploiting, protecting,
and developing such wealth in the interests of the state, its
security and economy." Energy taxes are also specifically allowed;
Article 20 of the basic law states, "Taxes and fees are to be
imposed on a basis of justice and only when the need for them
arises. Imposition, amendment, revocation and exemption is only
permitted by law."
Two ministries of the Kingdom of Saudi Arabia share the
responsibility of the energy sector: the Ministry of Oil and the
Ministry of Water and Electricity. The country's laws have also
established other agencies that have some legal powers, but are not
strictly regulatory. These include
Saudi
Aramco, originally a
joint venture
between the Kingdom and the California-Arabian Standard Oil, but
now a wholly-owned by the Kingdom, and Saudi Consolidated
Electricity Companies (SCECOs).
Russia
United Kingdom
United States
This section concerns the law of the United States, as well as
the states that are the most populous or largest producers of
energy.
In the
United
States
, energy is regulated extensively through the
United States
Department of Energy, as well as state secretaries of state or
corporation commissions.
Every
state, the Federal government, and the District of
Columbia
collect some motor
vehicle excise taxes.
Specifically, these are excise taxes on
gasoline,
diesel fuel,
and
gasohol. While many states in the
western U.S.A. rely to a great deal on "extraction taxes" for
revenue, most states get a relatively small amount of their revenue
from such sources.
The
practice of energy law has been the domain of law firms working on behalf of utility companies, rather than legal scholars or other legal actors (such as
private lawyers and paralegals), especially in Texas
, but this is
changing. Some officials from energy agencies may take jobs
in the utilities or other companies they regulate, such as the
former
FERC chairman did in 2008.
The
American Bar
Association (ABA) has a
Section of Environment, Energy, and
Resources, which is a "forum for lawyers working in areas
related to environmental law, natural resources law, and energy
law." The ABA offers fellowships to
law
students and recent graduates of law schools, for work in
"environmental, energy or resources law."
Common law
Under the
common law, persons who owned
real property owned "
from the
depths to the heavens".
Therefore,
real estate traditionally has
included all rights to water, oil, gas, and other minerals
underground.
The United States Supreme Court
has held that "this doctrine has no place in the
modern world," at least as far as air
rights are concerned, but it remains as a source of law to this
day, or "fundamental to property rights in land."
An
easement or
license to drill for oil, gas, or minerals generally
runs with the
land, and thus is an
appurtenant easement. However,
a utility easement generally runs with the owner of the
easement, rather than running with the land, and as
such, is an example of an
easement in gross.
Federal laws
Until the 1920s, "the federal government did not play an active
role in the energy industries," due to "the widespread belief in
the unlimited supply of energy." The first US law was the
Federal Power Act of 1920 (later amended
in 1935 and 1986). The
Manhattan
Project of the 1940s "initiated the era of nuclear regulation."
In 1946, the
Atomic Energy Act
was passed.
The Department of Energy and its constituent
Federal Energy Regulatory
Commission (FERC) were created in 1977, through the
Department of Energy
Organization Act. The stated purposes of these "federal energy
laws and regulations is to provide affordable energy by sustaining
competitive markets, while protecting the economic, environmental,
and security interests of the United States." The U.S.
Nuclear Regulatory Commission
(NRC) regulates the use of
nuclear
power and its uses as a
defense
weaponry.
Other statutes are the
Public Utility Regulatory
Policies Act, the
Energy
Security Act,, the
Price-Anderson
Nuclear Industries Indemnity Act, and the
Energy Policy Act of 1992 Most of
these laws are codified at
U.S. Code, Title 16, Chapter 12 - Federal regulation
and development of power. The
Commodity Futures
Modernization Act of 2000 also effects energy trading
companies.
As of January 1, 2008, the Federal excise tax is 18.3
cent per
gallon on
gasoline, 24.3 cents per gallon on diesel, and 13 cents per gallon
on gasohol.
Energy Policy Act of 2005
The most recent major law is the
Energy Policy Act of 2005, which
was an attempt to combat growing energy problems, changed the
energy policy of the
United States by providing tax incentives and loan guarantees
for energy production of various types.
There were various criticisms of the Act. One of the most controversial provisions of that Act was to change daylight saving time by four to five weeks, depending upon the year; some scholars have questioned whether daylight saving results in a net energy savings, and it creates the Year 2007 problem. It also directs a study for the development of oil shale and tar sands resources on public lands especially in Colorado
, Utah
, and Wyoming
. The Act further sets Federal reliability standards regulating the electrical grid (done in response to the Blackout of 2003). There was also criticism of what was not included: the bill did not include provisions for drilling in the Arctic National Wildlife Refuge
(ANWR) even though some Republicans claim "access to the abundant oil reserves in ANWR would strengthen America's energy independence without harming the environment." There are a number of tax credits in the Act, including the Nonbusiness Energy Property Tax Credit.
Developments 2007 to present

U.S. oil production (crude oil only)
and Hubbert's high estimate (a multi-field projection)
Two recent Federal laws are the
Energy Independence
and Security Act of 2007, and the
Food and Energy Security
Act of 2007.
There has been much debate and discussion about the use of Federal
laws to regulate energy. In fact, a whole area of
jurisprudence,
Law and economics, has developed from this
debate. Today, this is more relevant than ever:
As
the USA's oil runs out, and the nation
is in an
economic crisis,
even more laws are likely in the near future. The
Biomass Research and
Development Board is expected to release a report in late 2008
about
biomass as fuel.
In August 2008, it
was revealed that oil speculators had increased the volatility of the price of oil;
Congressman John Dingell criticized the
Commodity Futures
Trading Commission for failing to scrutinize oil futures
traders, in particular the Swiss
company
Vitol.
On June 22, 2008, Obama proposed the repeal of the
Enron loophole as a means to curb
speculation on skyrocketing oil prices.
In October 2008, as the
Democratic Party approached
victory in the 2008 elections, they remained divided on
energy policy, thus a consensus was not
expected in energy law.
President Barack Obama's new
Secretary of Energy,
Steven Chu, has no expertise in law, but his
younger brother,
Morgan Chu, is a partner
and the former Co-Managing Partner at
Irell & Manella LLP, a law
firm.
The
Department of
Energy (DOE) will, by administrative measures, reduce the
Hanford
nuclear reservation
(originally 586 square miles) to 10 square
miles. Much of the remaining area will go to the
300-square-mile Hanford Reach National
Monument
.
There are a number of proposed
tax
credits for energy use, including the
Renewable Energy 401 Tax
Credit.
In October 2009, Secretary Chu announced a new program, Arpa-e,
which will fund grants authorized under the Energy Independence and
Security Act of 2007.
American Recovery and Reinvestment Act of 2009

Loans and investments into green
energy technology is a significant part of ARRA
As part of the $787 Billion stimulus package or "ARRA" (technically
the
American Recovery
and Reinvestment Act of 2009),
US law now allows rebates for energy efficient products and for
weatherization. Energy law and policy is significantly effected by
this new law.

Official seal of the American Recovery
and Reinvestment Act of 2009.
Alaska law

Alaska oil field production decline
curve.

Alaska oil production peaked in 1988
and has declined 65% thereafter
Alaska
has vast
energy resources:
- Major
oil and gas reserves are found in the Prudhoe Bay
area of the Alaska
North Slope (ANS) and Cook Inlet
basins. According to the Energy Information
Administration, Alaska ranks second in the nation
in crude oil
production, accounting for 1/5 (20%) of United States oil
production, Prudhoe Bay alone accounting for 8% of the United
States domestic oil production.
- The
Trans-Alaska
Pipeline
pumps up to of crude oil per day, more than any
other crude oil pipeline in the United States.
- Substantial coal deposits are found in Alaska’s bituminous,
sub-bituminous, and lignite coal basins. The United States
Geological Survey estimates that there are of undiscovered,
technically recoverable gas from natural gas hydrates on the
Alaskan North Slope.
- Alaska also offers some of the highest hydroelectric power potential in the
country from its numerous rivers, and large swaths of the Alaskan
coastline offer wind and geothermal energy potential as well. As of
2001, the state's Energy Plan stated that, although wind and hydroelectric power are abundant, with
low-cost
electric interties) they were judged uneconomical.
Likewise,
Alaska receives a huge amount of its state revenues from extraction
taxes: a full 68 % of all revenue, much more than any state (only
Wyoming
coming close). Its dependence on
petroleum revenues and federal subsidies allows it
to have the lowest individual tax burden in the United
States.
The state created the
Alaska
Permanent Fund from this "golden egg", which is owned and
managed by the state, and "created by a constitutional
amendment":
The contitutional provisions are found at Alaska Constitution
Article IX, Section 15. Statutes regulate how the Fund is to be
invested, as well as how the
income is to be
disbursed. Regulations state additional details regarding control
of the Fund.
California law
The
largest state in the United States, California
, has gone through a series of energy crises, and has reacted with
several laws concerning energy. The California Energy Code,
or Title 24 of the
California Code, also titled
"The Energy Efficiency Standards for Residential and Nonresidential
Buildings", were established in 1978 in response to a legislative
mandate to reduce California's
energy consumption. The
standards are updated periodically to allow consideration and
possible incorporation of new
energy
efficiency technologies and methods, such as the
Programmable Communicating
Thermostat.
California assesses an excise tax with the same basic rate of 18
cents per gallon on gasoline, diesel fuel, and gasohol. The state
collects a relatively small 6.6 percent of its revenue from
extraction and related taxes.
New Mexico law
As a
major energy producer, New
Mexico
has government offices related to energy, including
the Energy Conservation and Management Division, which is part of
the state's Energy, Minerals and Natrural Resources
Department. All of the major laws impacting energy are
available from the Division's website. These include links to all
of the state's
statutes and related
government websites, Federal and State
regulations, and
Executive order.
New Mexico has enacted a number of new laws related to energy,
including to create a New Mexico Renewable Energy Transmission
Authority and to increase its renewable portfolio standards.
According to one law firm's summary of President Obama's Economic
Recovery Package, the state stands to gain much from the new
administration, because "New Mexico leaders and laboratories are at
the forefront of energy policy." For example, former
University of New Mexico Law
School professor
Suedeen G.
Kelly is a member of the
Federal Energy Regulatory
Commission.
The state collects an effective rate of 18.875 cent per gallon tax
on gasoline and gasohol, and 22.875 cents per gallon on diesel.
Like many western states, it collects significant revenue from
extraction taxes—20.9 percent of its overall sources.
The City
of Albuquerque
passed an ordinance to
regulate "efficiency standards for heating and cooling equipment,"
which was struck down by the U.S. District Court as violating the
Commerce Clause of the
U.S. Constitution.
The town board of
Taos passed a "strict new new
building code" in 2009 that mandated energy savings:
The town debated the proposed Ordinance 08-16, High Performance Building Ordinance, starting in October 2008, postponed it for legal review, debated it in February 2009, and passed it in March 2009.
The
New Mexico Gas Company
offers an Energy Star Home Rebate.
In October 2009, Governor
Bill
Richardson announced 21 grants for energy projects that are
being funded by $8 Million in
ARRA funds.
New York law
New York
has an Energy Law. Under New York law,
"energy" and "energy resources" are defined as:
The chief regulator is the "
Commissioner" or "president" of the
New
York State Energy Research and Development Authority (also
called NYSERDA). The
board of
directors of NYSERDA includes—as a
matter of law -- several utility insiders, as
well as
ex officio
commissioners. Vincent DeIorio, a lawyer, is chairman of the board,
and Robert Callender has been acting President and
CEO since
Paul Tonko resigned
to run for Congress in 2008. NYSERDA was created as a
public benefit corporation under
NY law.
In addition to Energy Law, the state has a variety of laws
regulating and taxing energy, and its courts have issued
significant case law concerning energy taxes.
Under New York law, both the
New York Attorney General or a
district attorney may prosecute
alleged polluters who make
oil spills. The
state has enacted a number of recent laws to control
carbon emissions.
The state collects an effective rate of 24.4 cent per gallon tax on
gasoline and gasohol, and 22.65 cents per gallon on diesel. New
York collects one of the smallest amounts of revenue from
extraction taxes of any state—only 5.8 percent of its overall
sources.
New York has law concerning energy from a wide variety of
sources; please consult the main article for more
information.
Texas law

Texas oil field production decline
curve.
Texas
energy law
remains the domain of a few law firms that represent utilities and
independent providers. Oil, gas, and other energy resources
are actually regulated by the powerful
Texas Railroad Commission. It
is the oldest such regulatory agency, having been created in 1891.
It "oversee[s] the Texas oil and gas industry, gas utilities,
pipeline safety, safety in the liquefied petroleum gas industry,
and the surface mining of coal."
Vermont law
The state
of Vermont
has a comprehensive law concerning energy and
siting, Act 250. The state's utilities are regulated by a
quasi-judicial board, the
Vermont Public Service
Board.
Wyoming law
Wyoming
is the top coal producer of the
50 states in the United
States
, and has significant oil and gas reserves, so its
government and laws would naturally reflect an interest in energy
production, especially fossil
fuels. The Wyoming
Oil and Gas Conservation Commission regulates many
aspects of oil, coal, and gas development in this resource-rich
state. There is an annual state Gas Fair.
The University
of Wyoming
is well-known for its research on energy
development. The University sponsored a symposium on
coal gasification in 2007.
Wyoming assesses an excise tax with the same rate of 14 cents per
gallon on gasoline, diesel fuel, and gasohol. The state collects
the largest percentage—46 percent of its revenue—from extraction
and related taxes, the second highest of the states, surpassed only
by Alaska.
Other new state laws
As the
nuclear power industry revives,
Florida
and South Carolina
have instituted new utility fees to finance planned
nuclear reactors.
Indiana
has a new law "that allows the state's finance
authority to negotiate long-term contracts to buy and sell
synthetic natural gas from a planned southern Indiana coal-gasification plant."
Massachusetts
has an energy law. Governor
Deval Patrick pushed for "clean energy
initiatives" in the 2008 legislative session, calling it "one of
the most productive in a long, long time."
New Hampshire
passed a new energy law, signed by Governor
John Lynch, which "provides guidelines
for residential wind energy systems.... such as height, noise,
setbacks and aesthetics and outlines a process for input from
neighbors." This was found necessary because a University
of New Hampshire
student, Laura Carpenter, found that "most
communities had no ordinances or zoning rules that specifically
address small residential wind turbines."
Ohio
has passed
a new energy law, and is requiring utilities to meet regulatory
goals for conservation.
See also
General energy topics
Specific laws and policies
Academic think-tanks and associations
Renewable and alternative energy sources
Awards and standards
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External links
Further reading
- Klause Bosselmann, The Principle of Sustainability
(Burlington, VT: Ashland 2008) ISBN 978-0-7546-7355-2.