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Renewable Energy
Energy security, a major driver of federal renewable energy programs in the past, came back into play as oil and gas prices rose late in the year 2000. Also, the 2001 electricity shortages in California have brought a new emphasis to the role that renewable energy may play in electricity supply. In the 107th Congress, debate over renewable energy programs has focused on tax credits, incentives, and the omnibus energy policy bill, H.R. 4. Also, worldwide emphasis on environmental problems of air and water pollution and global climate change, and the related development of clean energy technologies in western Europe and Japan may remain important influences on renewable energy policymaking. Concern about technology competitiveness may also remain a factor in debate.

For DOE's FY2003 Renewable Energy Program, the Administration seeks $407.0 million, an $11.3 million (3%) increase relative to the FY2002 appropriation.

ANWR
One important element of the energy debate in the 107th Congress is whether to approve energy development in the Arctic National Wildlife Refuge (ANWR) in northeastern Alaska, and if so, under what conditions, or whether to continue to prohibit development in order to protect the area's biological resources. ANWR is an area rich in fauna, flora, and commercial oil potential. Shortages of gasoline and natural gas and resulting increased prices from late 2000 to early 2001, followed by terrorist attacks, renewed the ANWR debate for the first time in 5 years; however, its development has been debated for over 40 years. Few U.S. locations stir as much industry interest as the northern area of ANWR. Current law forbids energy leasing in the Refuge. 

The Arctic National Wildlife Refuge (ANWR) consists of 19 million acres in northeast Alaska. It is administered by the Fish and Wildlife Service (FWS) in the Department of the Interior (DOI). Its 1.5 million acre coastal plain is currently viewed as one of the most likely U.S. onshore oil and gas prospects. Together, the fields on this federal land could hold as much economically recoverable oil as the giant field at Prudhoe Bay, found in 1967 on the state-owned portion of the coastal plain west of ANWR, now estimated to have held 11-13 billion barrels.

At the same time, the Refuge, and especially the coastal plain, is home to a wide variety of plants and animals. The presence of caribou, polar bears, grizzly bears, wolves, migratory birds, and many other species in a nearly undisturbed state has led some to call the area "America's Serengeti." The Refuge and two neighboring parks in Canada have been proposed for an international park, and several species found in the area (including polar bears, caribou, migratory birds, and whales) are protected by international treaties or agreements.

Corporate Average Fuel Economy (CAFE)
One of the least controversial provisions of the Energy Policy and Conservation Act of 1975 (P.L. 94-163) established corporate average fuel economy (CAFE) standards for new passenger cars. As oil prices rose, there was little expectation that manufacturers would have any difficulty complying with the standards. However, oil prices softened and the demand for small cars diminished. In response to petitions from manufacturers facing stiff civil penalties for noncompliance, the National Highway Traffic Safety Administration (NHTSA) relaxed the standard for model years 1986-1989.  The current standard is 27.5 mpg for passenger automobiles and 20.7 mpg for light trucks, a classification that also includes sports utility vehicles (SUVs). An attempt in the 102 nd Congress to raise CAFE proved too controversial and was dropped from omnibus energy policy legislation before it could pass (Energy Policy Act of 1992, P.L. 102-486). 

The Clinton Administration supported greater fuel efficiency, but indicated in 1993 that an increase in the CAFE standards was not the option likeliest to be embraced first. In 1994, the National Highway Traffic Safety Administration (NHTSA) issued a notice of proposed rulemaking to explore raising the CAFE standard for light-duty trucks. Congress included language in the FY1996-FY2001 DOT Authorizations (P.L.104-50, P.L. 104-205, P.L. 105-66, P.L. 106-69, and P.L. 106-346) prohibiting the use of appropriated funds for any rulemaking on CAFE, effectively freezing the standards. 

However, the Senate conferees to the FY2001 appropriations insisted upon a study of CAFE by the National Academy of Science (NAS).  That study, released on July 30, 2001, concluded that it was possible to achieve a more than 40% improvement in light truck and SUV fuel economy over a 10-15 year period at costs that would be recoverable over the lifetime of ownership. 

Additional Resources:

Senate Energy And Natural Resources Committee
House Committee on Energy and Commerce
US Department of Energy