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<br />SECTION 2.0 <br />FEDERAL ENERGY REGULATION <br /> <br />This section discusses the major policies and programs of the Federal <br />government which affect the production of energy resources, the distribu- <br />tion, and price of energy commodities, and the use of these commodities. <br />Regulatory programs influencing conventional petroleum, natural gas, coal, <br />and atomic fuels are discussed in subsections 2.2 through 2.5. Subsec- <br />tion 2.6 describes mandated conservation measures i subsection 2.7 identifies <br />Federal research and development programs for nonconventional energy <br />technologies and the production of alternative fuels from coal and biomass. <br />The Federal role in regulating the sale and distribution of electric power <br />and in controlling the transportation of energy commodities is addressed in <br />subsection 2.8. Federal taxes applicable to energy expenditures are dis- <br />cussed in subsection 2.9. <br />Appendix A is a comprehensive chronological listing of the statutes <br />discussed in the chapter. Appendices Band C identify and describe the <br />major elements of Federal environmental law and the management of mineral <br />resources on federal lands, since the policies and programs in thesla two <br />areas significantly affect virtually every aspect of energy production and <br />use. <br /> <br />2.1 BACKGROUND <br />Prior to the early 1970's, the Federal government's influence on <br />energy matters was generally incidental to the primary objectives of other <br />legislation and programs. The basic foundations of Federal energy law are <br />principally derived from the areas of public land management, interstate <br />commerce, tax, public utility, water, and environmental law. There is a <br />substantial history of Federal policy and regulation which has affected both <br />the development of energy resources and patterns of domestic energy <br />usage. Factors, such as wars, unemployment, labor disputes, public land <br />disposal, consumerism, economic growth, international agreements and <br />trade, and changing political attitudes, have prompted the enactment of <br />legislation which has directly or indirectly impacted the nation's energy <br /> <br />2-1 <br /> <br />iL,,~_,_ ~,_ <br /> <br />