Summary and Analysis of S. 2657, the American Energy Innovation Act

Issues in the 116th Congress reflect the ongoing debate over the federal role in energy policy, particularly related to research and development (R&D), development of fossil and renewable energy on federal lands, and the role of federal regulation, particularly as it relates to greenhouse gas emissions. Members of the House and Senate have introduced bills on a range of energy topics, and the Chairman and Ranking Member of the Senate Committee on Energy and Natural Resources (ENR) have proposed major legislation integrating many of these topics. On February 27, 2020, ENR leadership introduced S.Amdt. 1407, a substitute amendment for S. 2657, titled the American Energy Innovation Act, which incorporates language from energy bills reported by the committee. Cloture on the bill was invoked on March 2, 2020, and on March 5 several amendments were adopted. On March 9, 2020, a cloture on S.Amdt. 1407 was denied on a 47-44 vote. Energy issues addressed in the bill include: Energy efficiency in buildings, schools, and industrial/manufacturing facilities; Federal agency energy efficiency; Research and development of renewable and nuclear energy technologies; Research, development, and demonstration of efficient and alternative fuel vehicles; Reauthorization and amendment of the Weatherization Assistance Program; Modernization and security of electricity infrastructure; Energy storage; Carbon capture, utilization, and storage (CCUS); “Clean” (generally meaning low-carbon) energy workforce development; Promotion of small-scale liquefied natural gas (LNG) exports; Deployment of “smart manufacturing” to increase the productivity and energy efficiency of U.S. manufacturing; Amendments to Department of Energy (DOE) loan programs; and Programs to provide energy sector employment for veterans, and to use artificial intelligence and supercomputing to improve veterans’ health. The bill remains on the Senate calendar, although since discussion of the bill was suspended several major events have occurred: on March 11 the World Health Organization declared COVID-19 a pandemic leading to limits on personal and other travel, as well as a range of economic activities; during the month of March crude oil prices dropped by more than 50% because of declining demand and a lack of consensus among OPEC and other oil producers to limit production; U.S. gasoline and jet fuel product supplied (a proxy for consumption) dropped dramatically in the subsequent weeks, reaching levels not seen since at least the 1990s; and electricity demand in most parts of the country also declined. Whether these factors have sustained effects for U.S. energy is unclear, but they may influence any future discussion of U.S. energy policy.