# Presentation: 038772

## Enabling Legislation of the Energy Information Administration

- Dr. Mark Rodekohr
- Energy Information Administration

## Overview 

- Brief Overview of EIA Mission and Functions
- U.S. Government Statistical Policy
- Brief History of Energy Statistics Collections in the U.S.
- Key Legislative Features

## Overview of EIA’s Mission

- EIA, a statistical agency of the U.S. Department of Energy, provides policy-independent data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy and its interaction with the economy and the environment*.*

## Policy Independence

- Congress mandated that EIA's information be developed independently of the policy objectives of the Department of Energy and other parts of government.
- The EIA Administrator can only be fired by the President and not by the Secretary of the Department.

## Legal Independence Language

- The Department of Energy Organization Act (Public Law 95-91) allows EIA's processes and products to be independent from review by Executive Branch officials; specifically Section 205(d) says:
- "The Administrator shall not be required to obtain the approval of any other officer or employee of the Department in connection with the collection or analysis of any information; nor shall the Administrator be required, prior to publication, to obtain the approval of any other officer or employee of the United States with respect to the substance of any statistical or forecasting technical reports which he has prepared in accordance with law."

## Promote Sound Public Policy Making

- EIA's information includes data and analyses for the past, the present, and the future. Using over 80 of its own statistical surveys as a base of information, EIA regularly reports data about the supply, consumption, distribution, and price of energy in the United States.
- EIA performs special analyses at the request of Congress a recent example includes a study of the Kyoto Protocol.

## Promote Efficient Markets

- EIA's information includes data and analyses for the past, the present, and the future. Using over 80 of its own statistical surveys as a base of information, EIA regularly reports data about the supply, consumption, distribution, and price of energy in the United States

## Promote Public Understanding

- EIA uses its basic data publications, analysis reports, traditional and internet dissemination techniques to promote understanding.
- EIA works closely with the press to provide timely information that is useful to their readers.
- Our press releases are emailed to over 5000 individuals, companies and press customers.

## Promote Understanding Through Analysis

- About thirty to forty analysis reports and articles are prepared each year. Some examples of analysis topics in recent years include an assessment of changes following the 1973 oil embargo, the restructuring of the electricity industry and the natural gas industry, changes in stock behavior in the oil industry, changes in greenhouse gas emissions, and other topical issues. A list of EIA analyses items and access to the analyses is available from _[http://tonto.eia.doe.gov/analysis/index.html](http://tonto.eia.doe.gov/analysis/index.html)__._

## Budget

- Our FY 1999 budget (_[http://www.eia.doe.gov/pub/pdf/other.docs/budget99.pdf](http://www.eia.doe.gov/pub/pdf/other.docs/budget99.pdf)__) is $70.5 million with a Federal staffing level of 368 people. About 45% of the budget goes to pay the Federal staff. Another 40% of the budget funds about 300 support service contractors that are used to help us design and run our data and modeling systems. The final 15% of the budget pays for computer equipment, office space, and other administrative expenses such as telephones and office supplies._

## U.S. Government Statistical Policy

- After World War II the U.S. Government developed a uniform policy with regard to Federal Statistics including:
- Agencies are required to produce and publish a core set of statistics.
- These data should be available for free or at no more than marginal cost to all Americans.
- The U.S. Office of Management and Budget will develop statistical standards that all Agencies must follow in order to insure uniform data quality.

## Brief History of Energy Data Collections in the U.S.

- Most statistics collections were started following World War II.
- During World War II most energy products were rationed by the Defense Department.
- The U.S. Bureau of Mines was the lead energy statistical agency at this time.
- The Bureau of Mines has since been eliminated.

## History of Data Collections (continued)

- In 1978 the Energy Information Administration was created to consolidate most Federal energy data collection efforts.
- Other regulatory Agencies continue to collect information that is used for regulatory purposes.  Some of this work is conducted by EIA.

## Key Legislation (A)

## Why Congress Cares So Much About Energy Issues

- Energy accounts for about 8 percent of the U.S. GDP more than double the amount of money spent on the national defense.
- The only (there have been three) recessions over the last 30 years have been associated with rapid increases in energy prices.

## The Relationship Between Oil Prices and Economic Growth

## The Relationship Between Oil Prices and Economic Growth (2)

## The Relationship Between Oil Prices and Economic Growth (3)

## Definitions

***The term “energy information” includes (A) all information in whatever form on (I) fuel reserves, exploration, extraction and energy resources (including petrochemical feedstock's) wherever located : (ii) production, distribution, and consumption of energy and fuels wherever carried on; and (B) matters relating to energy and fuels, such as corporate structure and proprietary  relationships, costs, prices, capital, investment, and assets, and other matters directly related thereto, wherever they exist.***

## Definitions (continued)

***The term person” means any natural person, corporation, partnership, association, consortium, or any entity organized for a common business purpose, wherever situated, domiciled, or doing business, who directly or through other persons subject to their control does business in any part of the United States.***

## Information Gathering Power

- Federal Energy Administration Act (May 1974)
***Sec. 13 (a) The Administrator shall collect, assemble, evaluate, and analyze energy information by categorical groupings, established by the Administrator, of sufficient comprehensiveness and particularity to permit fully informed monitoring and policy guidance with respect to the exercise of his functions under the Act.***

## Information Gathering Power (continued)

***( c) The Administrator may require, by general or special orders, any person engaged in any phase of energy supply or major energy consumption to file with the Administrator in such form as he may prescribe.***
***(e) (1) The Administrator, or ant of his duly authorized agents, shall have the power to require by subpoena the attendance and testimony of witnesses, and the production of all information.***

## Public Disclosure of Information

***Sec. 14 (a) The Administrator shall make public, on a continuing basis, any statistical and economic analyses, data, information.***

## Reports and Recommendations

***Sec.15 (a) Not later than one year after the effective date of this Act, the Administrator shall submit a report to the President and Congress which will provide a complete and independent analysis of actual oil and gas reserves and resources in the United States and its Outer Continental Shelf*** ....

## Reports and Recommendations (continued)

***(b) The Administrator shall prepare and submit directly to the Congress and the President every year after the date of enactment of this Act a report which shall include:***
***Projection of energy supply for the midterm...***
***Analysis of the energy needs of the U.S. and the methods by which such needs can be met ...***

## Coordination With State Governments

- The Administrator shall delineate the role that State, and Federal governments will or may perform in achieving the purposes of this Act.

## National Energy Information System

***Sec. 52 (a) It shall be the duty of the Director to establish a National Energy Information System (hereinafter referred to in this Act as the “System”),  which shall be operated and maintained by the Office.  The System shall contain such information as is required to provide a description of and facilitate analysis of energy supply and consumption within and affecting the United States on the basis of such geographic areas and economic sectors as may be appropriate.***

## Analytical Capability

- (b) The Director shall establish and maintain the professional and analytic capability to evaluate independently and adequacy and comprehensiveness of the energy information in possession of the Office and other agencies of the Federal Government in relation to the purposes of this Act and for the performance of the analyses described in section 52 of this Act.  Such analytic capability shall include:
- expertise in economics, finance, and accounting;
- the capability to evaluate estimates of reserves of mineral fuels and nonmineral energy resources utilizing alternative methodologies;

## Analytical Capability (continued)

- the development and evaluation of energy flow and accounting models describing the production, distribution, and consumption of energy by the various sectors of the economy and lines of commerce in the energy industry;
- the development and evaluation of alternative  forecasting models describing the short – and long-term relationships between energy supply and consumption and appropriate variables; and...

## Professional Audit Review

***Sec. 55. (a) The procedures and methodology of the Office shall be subject to a thorough annual performance audit review.  Such review shall be conducted by a Professional Audit Review Team.***

## Congressional Access to Information

***Sec. 59. The director shall promptly provide upon request energy information in the possession of the Office to any duly established committee of the Congress.***

## Reporting of Energy Information

***For the purpose of assuring that the Federal Energy Administrator, the Congress, the States, and the public have access to and are able to obtain reliable energy information, the Federal Energy Administrator shall request, acquire, and collect such energy information as he determines to be necessary to assist in the formulation of energy policy***

## Enforcement

***(a) It shall be unlawful for any person to violate any provision of section 2 (relating to coal conversion and allocation) or section 11 (relating to energy information) or to violate any rule, regulation, or order issued pursuant to any such provision.***
***(b)(1) Whoever violates any provision of subsection (a) shall be subject to a civil penalty of not more than $2,500 for each violation****.*
***(2) Whoever willfully violates any provision of subsection (a) shall be fined not more than $5,000 for each violation. ***

## Specific Legal Requirements

## Export Statistics

***Sec. 25 (a) The Administrator is authorized and directed to establish and maintain a file which shall contain information concerning every transaction, sale, exchange or shipment involving the export from the United States to a foreign nation of coal, crude oil, residual oil or any refined petroleum product.***

## Coal Imports

- In General- The Energy Information Administration shall issue a report quarterly, and provide an annual summary of the quarterly reports to the Congress, on the status of United States coal imports.

## Uranium Mining

- Sec. 23. (a)(1) Not later than 12 months after the date of enactment of this section, the President shall prepare and submit to the Congress a comprehensive review of the status of the domestic uranium mining and milling industry.

## Manufacturing Energy

- (I)(1) The Administrator shall conduct and publish the results of a survey of energy consumption in the manufacturing industries in the United States on at least a triennial basis and in a manner designed to protect the confidentiality of individual responses.  In conducting the survey.....

## Petroleum Market Monitoring

- In General-(1) The Secretary of Energy, acting with Energy Information Administration, shall conduct a study of domestic crude oil production and petroleum refining capacity and the effects of imports thereon in order to assist the Congress and the President in determining whether such production and capacity are adequate to protect the national security.

## Oil and Gas Resources

- The separate calculation of capital, revenue, and operating cost information pertaining to-
- )prospecting,
- )acquisition,
- )exploration
- )development, and
- )production,
- including geological and geophysical costs, carrying costs, unsuccessful exploratory drilling costs, intangible drilling and development costs on productive wells,  the cost of unsuccessful development wells, and the cost of acquiring oil and gas reserves by means other than development.

## Alternate Fueled Vehicles

- Not later than one year after the date of enactment of the Act, the Secretary, through the Energy Information Administration, and in cooperation with appropriate State, regional, and local authorities, shall establish a data collection program to be conducted in ate least 5 geographically and climatically diverse regions of the United States for the purpose of collecting data which would be useful to persons seeking to manufacture, convert, sell, own, and operate alternative fueled vehicles or alternative fueling facilities.

## Greenhouse Gases (Data)

- National Inventory- Not later than one year after the date of the enactment of this Act, the Secretary, through the Energy Information Administration, shall develop, based on data available to, and obtained by, the Energy Information Administration, an inventory of the national aggregate emissions of each greenhouse gas for each calendar year of the baseline period of 1987 through 1990.

## Greenhouse Gases (Voluntary Reporting)

- Issuance of Guidelines-Not later than 18 months after the date of the enactment of the Act, the Secretary shall, after opportunity for public comment, issue guidelines for the voluntary collection and reporting of information on sources of greenhouse gases.

## Financial Reporting

- The Administrator shall develop and make effective for use during the second full calendar year following the date of enactment of this Act the format for energy-producing company financial report.  Such report shall be designed to allow comparison on a uniform and standardized basis among energy-related activities of such companies.

## Financial Reporting (continued)

- In addition to the acquisition, collection, analysis, and dissemination of energy information pursuant to this section, the Administrator shall identify and designate “major energy-producing companies” which alone or with their affiliates are involved in one or more lines of commerce in the energy industry so that the energy information collected from such major from such major energy-producing companies shall provide a statistically accurate profile of each line of commerce in the energy industry in the United States.

## Conclusions

**Due to public perceptions Congress was very careful in establishing the EIA as an independent body with clear authority to collect and disseminate objective, reliable and timely energy information.**
**Congress also required some very specific data collections and analysis reports to support its policy making needs.**