Tag Archives: policy

Petroleum Administration for Defense Districts (PADDs): Past and Present

If you’re an energy-statistics nerd (which you probably are if you’ve found your way to this blog), you’ve no doubt seen various regional data expressed by PADD, or Petroleum Administration for Defense District. Referring to barrels of oil sent from one PADD to another or which PADD uses certain fuel types for home heating  allows for a useful shorthand for regions of the United States and their energy related statistics. Many people who come across the PADD system might already understand PADDs to be a bygone classification system from the country’s fuel rationing days, but most people’s understanding of the PADD system stops here and the history of PADDs are not explored any further.

 

That’s where this article comes in! This piece will serve to explain what the PADDs are, where they originated, how they evolved over the years, and how they are relevant today.



What are PADDs?

Petroleum Administration for Defense Districts, or PADDs, are quite simply the breaking down of the United States into different districts.
PADD 1 is referred to as the East Coast region and, because of its size, is further divided into three subdistricts:
  • PADD 1A, or New England, comprises Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont;
  • PADD 1B, or Central Atlantic, comprises Delaware, the District of Columbia, Maryland, New Jersey, New York, and Pennsylvania; and
  • PADD 1C, or Lower Atlantic, comprises Florida, Georgia, North Carolina, South Carolina, Virginia, and West Virginia.

PADD 2 is referred to as the Midwest region and comprises Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Ohio, Oklahoma, Tennessee, and Wisconsin.

PADD 3 is referred to as the Gulf Coast region and comprises Alabama, Arkansas, Louisiana, Mississippi, New Mexico, and Texas.

PADD4 is referred to as the Rocky Mountain region and comprises Colorado, Idaho, Montana, Utah, and Wyoming.

PADD5 is referred to as the West Coast region and comprises Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington.

New PADDs

There are also two additional PADDs after the original five PADDs that rarely get mentioned, likely because they are much newer and the volume of oil products going in and/or out of them are minimal compared with the rest. Despite a mention of them in the Energy Information Administration‘s (EIA) write up of the PADD system,  PADDs 6 and 7 (meant to cover U.S. territories around the world) do not have data on them included on the prominent, publicly-facing EIA data sets. However, some digging shows that PADD 6 was added in 2015 in order to properly report needed information to the International Energy Agency and comprises the U.S. Virgin Islands and Puerto Rico, while PADD 7 includes GuamAmerican Samoa, and the Northern Mariana Islands Territory. You will commonly find sources citing just five total PADDs, but don’t let that throw you off. Simply impress those you meet at energy cocktail parties by memorizing what territories are in PADDs 6 and 7.

Origin of PADDs

The federal government first established the regions that would become the five PADDs during World War II. Specifically, the Petroleum Administration for War was established as an independent agency by Executive Order 9276 in 1942 in order to organize and ration the various oil and petroleum products to ensure the military had all the fuel it needed. Part of that organization process was the establishment of these five districts as a tool for that goal. The Petroleum Administration for War ended in 1946 after the war efforts were over, but these five original districts were quickly reestablished by the successor Petroleum Administration for Defense that was created by Congress in 1950 in response to the Korean War. This Administration provided these districts with the name Petroleum Administration for Defense Districts.


Source

Changes over time

As stated, the original function of the PADDs was to ensure proper distribution of oil supplies during World War II. In fact, the Department of Defense made use of the PADD system to redirect oil resources to specific PADDs  in response to Nazi attacks on U.S. tankers. These oil distribution efforts were the largest and most intricate such efforts yet, leading to the realization that interstate pipelines would soon become necessary to connect oil refineries with distant U.S. markets. But once World War II ended, the government determined there was no more need for the Petroleum Administration for War, and gone with the Administration were the districts.

After the Petroleum Administration for Defense revived the five districts, they were then under the management of the Department of Interior’s Oil and Gas Division, with the continued function to ensure the oil needs of the military, government, industry, and civilians of the United States were met. As with the Petroleum Administration for War, the Petroleum Administration for Defense was short-lived and was abolished just four years later by the Secretary of the Interior’s Order 2755 in April of 1954. Even though the government agency was eliminated, the names and organization of the various PADDs continued to be used ever since.

One significant change over the history of PADDs that is important to note is that there are no present day ‘official’ government keepers. While the PADDs served an official function and thus had official definitions set out by government agencies during World War II and the Korean War, that is no longer the case today– but that does not mean they are no longer significant. Within the Department of Energy (DOE), EIA uses the PADDs extensively in its aggregation and dissemination of data (discussed in more detail next). Further, government agencies have defined PADDs for use within specific regulations. For example, the Environmental Protection Agency (EPA) codified PADDs in the Code of Federal Regulations (CFR) when regulating motor vehicle diesel fuel sulfur use (though it explicitly dictates that the definition is only applicable as codified for that specific regulation) and specified total benchmarks and reductions that were to be met PADD-wide, as well as in reporting requirements regarding fuel additives so that they get published by PADD.

Use of PADDs today

With the government being out of the business rationing oil and petroleum since the end of the Korean War, the PADDs have found new purpose. The same PADDs have survived to allow analysis of data and patterns of crude oil and petroleum product movements within (and outside) the United States. Using these PADDs, government and industry players are able to ensure they are using the same regional collection of states and shorthand language to analyze and spot trends within regions instead of being confined to looking at the nation as a whole or analyzing on a more state-by-state basis.

Further, the PADDs are separated in a way that makes analysis straightforward. For example, following the crude supply in PADDs 2 and 3 are the most important to crude prices because they contain the largest number of refineries. Heating oil demand is mostly concentrated in PADD 1, making that the region to look at when investigating heating oil prices. Additionally, using the language of PADDs enable quick insights into data such as EIA noting the impact of Hurricane Harvey on flow of propane from PADD 2 to PADD 3 or detailing how PADD 1C needed to supplement its gasoline inventories with foreign imports when there was an accident that shutdown the pipeline that typically supplies the area with gasoline from PADD 2.

Examples of trends, statistics, and PADD characteristics

There are plenty of other examples of the usefulness of dealing with oil-related data within PADDs. A common example is to delineate from where different PADDs receive their oil. For example, with the knowledge that almost half of U.S. refining capacity is on the Gulf Coast (i.e., PADD 3) while less than 10% of refining capacity is on the East Coast (PADD 1) (though PADD 1 contains about one third of the U.S. population), an obvious conclusion is that there must be a lot of intra-PADD oil shipments everyday. In fact, about half of the oil consumed everyday by PADD 1 is supplied from PADD 3 over pipeline, rail, truck, and barge.

Going further, much of the commonly distributed data from EIA (click here to learn about the vast data available from EIA and how to navigate it all) utilizes PADDs. For example, EIA allows you to look at the following:

and much more.

So hopefully the next time you read a table from EIA that deals with oil movement specific to PADD 3 or read a news article citing the disruption of a pipeline that serves PADD 1, this article will come to mind and you’ll be better served to speak to it– and remember to try and win some bets with your knowledge of the seldom-mentioned PADDs 6 and 7!
Sources and additional reading:
About the author: Matt Chester is an energy analyst in Washington DC, studied engineering and science & technology policy at the University of Virginia, and operates this blog and website to share news, insights, and advice in the fields of energy policy, energy technology, and more. For more quick hits in addition to posts on this blog, follow him on Twitter @ChesterEnergy.  

Solar Power and Wineries: A Match Made in Heaven…and California

As the amount of power generation from solar energy continues to rise in the United States, more and more businesses are realizing the benefits of utilizing solar energy on their own properties. This type of small-scale solar generation is rising across industrial and commercial sectors, and no where is it more prevalent than in California, home of 43% of the nation’s small-scale solar output in 2016. California also leads the nation in another crucial area– wine production! If California were its own country, it would be the fourth largest producer of wine, accounting for 90% of wine produced in the United States.

Seeing as California tops the list in solar power and wineries, it only makes sense that vineyards in the state have been rapidly adopting the renewable energy source on their properties. Exactly how much solar power is being captured on these wineries, and what wineries are doing the most to implement solar systems? This article will answer those questions. Also, I’ll be the first to admit that I’m more of a beer drinker than a wine connoisseur (see this write up on which breweries use the most renewable energy), but the last part of this article outlines a California wine road trip that hits the top 10 wineries by solar energy capacity that has me already looking at flights to the West Coast.



Why solar and why California wineries?

Many wineries across the country and the world, not just in California, have realized the benefits of solar power and installed solar systems to meet part of or all of their energy needs. For example, Lakewood Vineyards in New York,Tenuta Delleterre Nere in Sicily, and Domaine d Nidoleres in France have all installed solar power systems on their wineries.
But this article focuses just on those wineries with solar power in California, as it is the region foremost afforded with the scale, climate, and policy to really promote both the solar and wine industries.

Solar power in California

California is not the only state to be embracing solar power at breakneck speeds, but there are a number of reasons why the state was always primed to become the nation’s leader. California tops the United States as a solar energy generator  so much, in fact, that it’s had to pay other states to take the excess generated power off its hands. California’s dominance in solar power can be attributed to the following:

Wineries in California

California is obviously also not the only state in the wine business, but it completely dominates the U.S wine industry in terms of volume of wine produced, as well as reputation for quality. Not only does 90% of total U.S. wine come from California, but the quality of California wine is considered today to be at it’s highest ever stature in quality according to many experts. The modern boom of the California wine industry has a number of causes, including the following:

Putting the solar and wine industries together

When you look at the massive advantages California has when it comes to cultivating a solar power sector and a wine industry, having the two fields overlap appears to be an obvious marriage throughout the state. Fortunately, the integration of solar power into winemaking is a natural fit.

With California being such a hospitable region for both solar power and winery, the logical question becomes how can the two be combined into a symbiotic and fruitful relationship. Wineries have been installing and taking advantage of solar power for years now due to the various benefits it provides the winery business. Fetzer Vineyards has run on 100% renewable energy since 1999, while Shafer Vineyards have fulfilled all their energy needs with solar power since 2004.
In terms of why solar power works perfectly as a energy source at wineries and related facilities, there are a number of reasons. For one, solar panel technology is at its most efficient at about 77 degrees Fahrenheit and can absorb sunlight even on cloudy days— this warm/temperate climate that optimizes solar technologies also happens to be the right weather in which to grow wine grapes. Beyond that, wineries are operations that typically have a large footprint, making it easier to find area on roofs or in fields on which to place solar panels compared with non-agricultural industries. This abundant availability of solar panels at wineries means that the energy gathered from the sun can be used to power all sorts of facilities of wineries– the primary residence, workshops, tasting rooms, offices, industrial equipment, and more.
Not only does solar work better on wineries than many other industries, but it also provides some unique benefits to those wineries that go out of the way to install solar power systems. The technology itself is reliable for extended periods of time (warranties last 20 to 25 years, while the life of service is 40 to 50 years), with economics so good that wineries have the ability to earn a 20% return on investment in solar panels. In fact, the solar power haul at some wineries can sometimes be even more than is needed to run the winery, allowing these lucky business-owners to sell it back to utilities (though this type of net metering finds itself the subject of heated policy debate these days). Because of this, the technology is even being developed for on-site microgrids designed for self-consumption, load shifting, and peak shaving.
Beyond all that, those who work in the wine business have a personal stake in increasing the use of renewable energy sources in order to reduce the greenhouse gas emissions that are causing climate change. Wine grape vines are very sensitive to changes in temperature that climate change would bring, not to mention the difficulty faced by all agricultural businesses as a result of extreme weather and droughts, while the recent wildfires in California (which are more prone to happen as climate change continues) show the devastation that such fires can cause to the wine industry. It behooves the wine industry to embrace clean technologies wherever and whenever possible.

List of California wineries using solar power

Because of all these stated advantages, California wineries are absolute leaders in embracing solar technology. After extensive research and reaching out to individual wineries, I’ve put together the below list of 132 wineries across the state taking advantage of solar power. The capacity of these solar systems range from 2 kilowatts (kW) to well over 1 megawatt (MW), showing that all ranges of sizes are options depending on the level of commitment a winery is ready to make. Taken together, these wineries have a total peak solar capacity of 27.8 MW– which is a greater capacity of solar power than the total electric power industry in 15 different states as of 2015!
So if you’re like me and you have a difficult time at the wine store knowing what wine to buy because you don’t really know what to look for, you can now keep this list handy to support a winery that incorporates clean and renewable solar energy into its operations!
It’s worth noting that there are sure to be plenty of California wineries using solar power that are not included in the above table. Any winery that is listed in one of the cited resources as having an installed solar system but did not include its capacity was not included in the list, as these capacities are crucial to the later analysis of this article (this includes any wineries I reached out to but didn’t hear back from). There are also surely wineries that are using solar that don’t advertise it anywhere, or they do advertise it and my search failed to find it. If you’re aware of any wineries that should be included on this list but are not, please leave a comment below!

Quality and price of wines from California solar wineries

Beyond just finding and ranking the capacity of solar energy systems at various wineries, I thought it would be interesting to take each solar winery and compare them based on a noteworthy wine they produce. With that in mind, each solar winery in the previous list was paired up with the best wine it has (according to the top rating a wine of theirs received from Wine Enthusiast Magazine) along with that wine’s rating and price (both also according to Wine Enthusiast Magazine). That process led to the below table (note that some wineries from the first list are not included in this list because none of their wines showed up in Wine Enthusiast Magazine’s ratings).

 

It’s hard to really abstract anything by looking at that in list form. Instead, we can then take that list and look graphically at the solar capacity of a winery and the rating of it’s best wine:
The same can be done to compare the solar capacity of a winery and the cost of it’s best wine:

Looking at these graphical representations, you can see that its not just niche wineries that are embracing solar energy. Every sort of price range and a whole range of sophistication and repute of wine has a wine that comes from wineries with solar installations, both large and small in capacity. The solar capacity of the wineries does not say anything about the wine produced at that winery– the installation of solar cuts across all sorts of vineyards. This shows that there should be no reason solar power at wineries cannot continue to grow to new wineries and expand capacity at wineries already with solar.

Where are solar wineries located in California?

Another interesting data point for each of these wineries is the region of California they are in. The separation of the various areas of California into its wine regions is sometimes a bit of a tricky exercise, with some well-known regions being sub-regions to others, the existence of some gray areas, and different wine region names depending being used depending on the resource being referenced. For the sake of this exercise, I will be using the following five main wine regions of California (recognizing they can and often do get broken down even further into smaller regions):
  • North Coast
  • Sierra Foothills
  • Central Coast
  • Central Valley
  • South Coast
These five regions are found in the following maps:

Source 1 Source 2

Before analyzing each region as a whole, the below graphic shows each city/town in California where the cumulative solar capacity at wineries is above 500 kW. The size of the circles are proportional to the total capacity. Using this visualization, you can already see where the most solar capacity is concentrated, in the North Coast and Central Coast.
If you then total up the capacity for each of the five major wine regions in California, you get the following graph:
This could be a misrepresentation of how dedicated each region is to solar, however, as all the regions are not the same size. It could just be that the North Coast has the most wineries (which it does), but a lower percentage of them are utilizing solar. To test this, the total solar capacity of wineries in each region is divided by the total acreage of planted wine grape vines in that region:
The result is that the North Coast is still the region with the greatest concentration of solar capacity per acreage of winery, still followed by Central Coast (though it’s a more distant second), and then the Sierra Foothills get a boost (while still remaining in third place). In either graph, Central Valley and South Coast lag way behind in fourth and fifth, respectively.

Road Trip

The last piece of analyzing the solar wineries in California I wanted to look at was putting together an epic road trip of California wine country that enables you to hit up the wineries in the state that use the most solar power. Thanks to Google Maps, I was able to find a route that takes you across 372 miles over the course of 6 hours and 47 minutes and visits the top ten wineries in terms of solar power capacity. If you’ve always wanted to tour the best wineries and vineyards that California has to offer, but didn’t know where to start, then look no further!
The first day of the trip can take you to Meridian Vineyards, Estancia Estates Winery, and Carmel Road Monterey with only a bit over two hours of driving total, enabling you to see over 3 MW of solar powered winery. On the next day, after driving about three hours to get to the next batch of wineries, you’ll find yourself at the remaining seven wineries– total capacity exceeding 7 MW– that are within an hour and a half total drive from each other.
If you’re interested in driving this solar winery route (or maybe paying someone to drive you on this winery route– it is TEN wineries, after all), see the Google Maps route linked below.
 

Sources and additional reading

Solar Energy in the Winemaking Industry: Green Energy and Technology (Preview of book herelink to purchase book here)
About the author: Matt Chester is an energy analyst in Washington DC, studied engineering and science & technology policy at the University of Virginia, and operates this blog and website to share news, insights, and advice in the fields of energy policy, energy technology, and more. For more quick hits in addition to posts on this blog, follow him on Twitter @ChesterEnergy.  

Advice for Effective Public Comments in the Federal Rulemaking Process

Having spent a few years earlier in my career entrenched in the rulemaking process behind a number of regulations from the Department of Energy concerning appliance standards, I am able to empathize with the teams of analysts at federal agencies that are tasked with receiving and addressing the feedback that comes in during public comment periods. During every rulemaking process, there are real humans reading every single public comment received (even when those comments number in the thousands), cataloging the specific concerns from the stakeholders, conducting research and analysis regarding the points that were brought up, and ultimately responding to those comments– either by detailing why the existing analysis already addresses the comment or, if the stakeholder comment has successfully done its job, adjusting the analysis during the next round of the rulemaking to account for the issues brought up in the comment.

While submitting a comment in response to the federal rulemaking process can seem intimidating, the truth is that every rulemaking process receives comments from every sort of stakeholder, large and small, with the widest range of expertise on the topics possible (see previous article on how the rulemaking process works and what the function of the public comment period is here). Those involved in the regulatory process know to expect multi-page comment submissions with loads of data and testimonials from powerful trade associations or advocacy groups, but it is also common to receive more pointed and specific comments from concerned private citizens who don’t have any experience in the relevant industry, but simply have their own opinions and concerns. The beauty of the public rulemaking process, however, is that every single comment must be summarized in the next step of the rulemaking, along with a response as to how the new analysis addresses the concerns, no matter who submits it. With that in mind, regardless of whether you are representing a larger organization or just your personal interests as a citizen, what follows are six methods you can employ that will ensure your comment most effectively influence the federal rulemaking process.



1. Be accurate

This piece of advice should go without saying, but rest assured I have found that it needs to be said. If a comment submitted to the federal agency is found to have a basic inaccuracy in it, then the rest of the comment on that topic will be called into question and it can potentially carry less weight. An underlying inaccuracy in the comment will make responding to, or dismissing, the whole comment all too easy. So while it may be overly obvious, if you hope to make an impact on a regulatory rulemaking then be sure to verify the accuracy in everything you say.

 

2. Be specific with issues and provide alternatives

If you want your comment to be addressed specifically in the analysis, be sure to include specifics in the comment. Don’t say that something would be detrimental to businesses– state exactly what the detriment would be and why. Don’t state that a discussed technology would not be technologically or economically feasible– state what technology would be feasible and note what exactly is preventing the original technology from being so. Don’t state that a pricing analysis is unrepresentative of the market– describe how and why the analysis is off.

The point is that if the federal agency is given a vague reason for why the analysis is ‘bad’ or ‘off,’ but not given any specifics, then there is nothing tangible to address. The rebuttal to the non-specific comment can simply be to restate the original analysis and reasons behind it. However if a specific reasoning and alternative is instead provided, then you are giving the federal agency something meaty to address. The subsequent analysis must either move towards your alternative or give details about why that alternative is incorrect. But if your alternative is airtight and there are not holes to poke in it, then you will likely find success in shifting the analysis behind the rulemaking.

 

3. Address the issues the rulemaking asks about– but don’t be restricted to those topics

When reviewing a rulemaking document, whether in the early stages with a Request for Information (RFI) or later during the Notice of Proposed Rulemaking (NOPR) stage, you will often find specific issues called out on which the agency behind the rulemaking is seeking comment. These issues are numbered for ease of finding them, and sometimes (but not always!) listed in a single place at the end of the notice. If you do not see a list at the end of the notice, be sure to go through the document carefully to find them all in-line, where they’ll appear as in the example below.

Source

When the agency is pointing out these specific issues on which it requests comment, that shows where the most impact of a comment might be received. These are the issues that they might have the least amount of information (or they have information but recognize it’s outdated) concerning, or where they recognize there is considerable debate. Regardless of the reason, all comments on each of these numbered issues end up getting aggregated to get a clear picture of the available information and data before a decision on the direction of the rulemaking is made (though it is important to note that it is not decided by what received the most comments, but rather the accuracy and quality of the comments outweigh the quantity of comments received on an issue). If your position on the rulemaking is related to any of these specifically identified issues, make sure to frame your comment in direct response to the question asked (it even helps to note by number which issue your comment is addressing).

With all of that said, you should not feel that the identified issues are the only ones eligible for response or that the agency will not put equal weight behind comments regarding other aspects of the analysis. You might have comment or information on a topic on which the agency wasn’t focused or didn’t realize was controversial. So while it is important to fit your comments into the box of the issues identified by the notice if they are relevant to those issues, do not feel restricted to those topics. You just might be the only one to bring up this new issue, influencing the next stage of the rulemaking to address it more specifically.

 

4. Include hard data

The best way to back up your comment and encourage a specific response in the next stage in the analysis is to include your own data as evidence. Perhaps you think this data was overlooked by original analysis, or maybe you think the data that was included originally does not tell the whole story. Either way, if your data supports a change in the analysis and a different conclusion, then providing the full set of that data in your public comment is the best way to influence the rulemaking. Doing so will force the next stage of the analysis to either include that data (and thus changing the course of the analysis towards your desired outcome) or at the very least will require the next stage of the analysis to refute your data.

 

5. Include sources

Similar to including your own hard data, crucial to an effective public comment is providing evidence towards your points. Providing a comment that breaks down to be essentially subjective is unlikely to be effective, but if you can demonstrate your points with sources– e.g., scientific studies, experimental results, industry information, or marketing analysis, then the comment will make a bigger splash. The more you can ‘show’ your point rather than ‘tell’ it, the more substance and weight your comment will have.

 

6. Offer to follow up

An under-utilized strategy with regards to public comments on the public rulemaking process is making yourself available to the federal agency. The public comment stands on the record as a written statement of your thoughts and concerns on the rulemaking, but in commenting you can also offer to discuss the points further with the agency pursuing the rulemaking. Doing so may result in you being interviewed in the next fact-finding stage of the analysis, or you might also be invited to the next public meeting on the rulemaking to discuss your concerns further. These conversations can be the most valuable tool for really getting your point across and making sure the agency understands the basis of your viewpoint. Written comments only have the opportunity for a single back and forth between commenter and government agency, but conversations allow for the complete back-and-forth required for full understanding between the parties.

 

Conclusion

While there is no guarantee any single public comment will change the course of a particular rulemaking, if you follow these six guidelines then there is a greater chance that your comment will be well-received by the agency and carry the weight of consideration it deserves. If you have any additional questions on this process, don’t hesitate to reach out in the comments below or by contacting me directly.

Additional Reading

A Guide to the Public Rulemaking Process: Office of the Federal Register

Frequently Asked Questions: Office of Information and Regulatory Affairs

Notice and Comment: Justia

Notice-and-Comment Rulemaking: Center for Effective Government

Policy Rulemaking for Dummies

Rulemaking Process and Steps to Comment: The Network for Public Health Law

Tips for Submitting Effective Comments: Regulations.gov

 

 

About the author: Matt Chester is an energy analyst in Washington DC, studied engineering and science & technology policy at the University of Virginia, and operates this blog and website to share news, insights, and advice in the fields of energy policy, energy technology, and more. For more quick hits in addition to posts on this blog, follow him on Twitter @ChesterEnergy.  

Policy Rulemaking Process for Dummies

Calling this article “for dummies” is tongue-in-cheek, because the inner workings of government and the development of public policy are shrouded in mystery for most people. However this mystery does not persist because the process is too difficult for the average person to understand (my rant about how foolish it is that this part of the policy process is not taught in middle schools or high schools is for another day). In fact, the beauty of the rulemaking process is that it is designed to engage those outside the government world.

After getting personally involved in the rulemaking process to determine energy efficiency standards for various electronic products, I learned what occurred behind the curtains for these federal energy regulations– just how involved the process of determining these regulations were, how many different parties came into play, and how backed in data, testing, analysis, and public feedback these final regulations were. Many resources exist that explain the whole rulemaking process in more detail and completeness than I will, and a few of those resources can be found at the end of this post, but as someone who spent several years on the inside I will provide a brief overview of the process and a few insights I picked up along the way.



What is a Rulemaking?

A rulemaking is the process that is mandated for creating federal regulations, including the analysis of the effects of a potential regulation and the solicitation of public feedback along the way. Rather than having lawmakers themselves create the specific regulations for certain topics, Congress instead authorizes federal agencies to dive into the details and research, analyze, and dictate the final details of those rules. The regulations produced at the end of a rulemaking have all the effect of a law, and all existing federal regulations are listed in the Code of Federal Regulations (CFR). For anyone looking to find out the particulars of any federal regulation, the CFR is the repository to reference. Federal regulations cover a broad range of topics—from energy to telecommunications to patents and more, with these topics being listed in the CFR’s Table of Contents.

The Beginning of the Rulemaking Process

While the federal agencies, such as the Department of Energy (DOE) or the Environmental Protection Agency (EPA), are the main entities that control the rulemaking process, no regulations can be issued without proper statutory authority being first granted. Even though the regulations posted in the Federal Register (FR) are attached to Executive Branch agencies, the authority to issue these regulations comes from Congress. Each regulation proposed and ultimately issued has an authority section somewhere in the beginning so the reader can trace its history and why it was initiated.

Two types of authority—Left is where Congress passed a law to initiate a specific rulemaking proces (DOE’s regulation of the energy efficiency of metal halide lamp fixtures, 79 FR 7746); Right references the broad authority granted by Congress to regulate certain areas (EPA’s regulation of air pollutants, 82 FR 39712)

The Congressional authority for a rulemaking can either come from the law that first created the federal agency and dictated which areas it had jurisdiction to regulate (such as the above right, where EPA references the authority to regulate air pollutants from the general powers granted to EPA by Congress), or Congress can pass a law that specifically directs an existing agency to go through the rulemaking process and set regulations for a particular topic of interest (such as the above left, where DOE references the authority from a law that Congress passed instructing DOE to establish energy conservation standards for certain appliances by a given date).

Stepping Through the Rulemaking Process

Make no mistake about it—the rulemaking process for federal regulations is very long and in depth. Nothing is done haphazardly, with the people behind it conducting extremely extensive factfinding and analysis. The amount of cumulative effort that goes into regulating, for example, the energy efficiency of a lightbulb or ceiling fan is mindboggling. While the process behind each rulemaking could differ depending on the regulation’s history, complexity, urgency, importance, or politics, the generally expected process is outlined as follows:

Notice of Proposed Rulemaking

The Notice of Proposed Rulemaking (abbreviated as either NOPR or NPRM) is often the first official document published that announces the beginning of the rulemaking process. Included in the NOPR is a preamble detailing the goal of the rulemaking, the authority granting the agency the power, and the relevant dates and contact information for the rulemaking; the supplemental information section that discusses the initial framework, background data, preliminary analysis, and merits of the proposal; and a preview of what the regulation language would look like in the CFR. The NOPR is not the final regulation, but rather serves to inform the public about the initial findings of the analysis based on the preliminary information collected and provide the public stakeholders the opportunity to provide feedback on those findings (more on that later).

There do exist a couple of exceptions where the NOPR won’t be the first notice from an agency regarding the rulemaking process:

  • An agency might receive a petition for rulemaking from an interest group or member of the public, making the case for why a specific regulation is needed. The agency might then publish that petition in the FR to solicit comments on whether a rulemaking on that topic should be pursued.
  • Alternatively, an agency may, for particularly complex or critical rulemaking, choose to publish a preliminary document in the FR, such as an Advanced Notice of Proposed Rulemaking (ANOPR) or a Framework Document. The goal of publishing either of these documents would be to solicit public feedback earlier on in the information gathering and analysis to ensure the initial framework set up for analysis is headed in the right direction. Neither of these documents are mandatory, but when a potential regulation might have additional complications then the use of these early publications ensure those issues can be addressed thoroughly.
  • Lastly, there are times where an agency initiates a negotiated rulemaking. When this happens, the agency will invite the stakeholders and major players to meetings to try and reach an agreement on the terms of a proposed rule. These meetings will include representatives from multiple viewpoints on the topic, and if a consensus can be reached then the agency may endorse those terms as a basis for the proposed rule.

Comment Period

After a NOPR (or earlier preliminary document) is published in the FR, the agency will request comments from the public during an official comment period. These comments can be either in agreement or in opposition, and they can pertain to the rulemaking generally or to a specific part of the analysis. The typical comment period will last 30 to 60 days, though it can vary. More complex rules might have longer comment periods to allow stakeholders enough time to digest and respond to the proposed rulemaking, or the public can even request the comment period be extended if there are extenuating circumstances (though if the agency does not find there to be good reason to do so, they do not have to grant this request). Additionally, if the agency finds that comments received were not of the type and quality needed to move forward with the next stage of the analysis, the comment period can be re-opened. The agency might also find that the initial round of comments brought up new and complicated issues that requires further public comment. In these instances, the agency can open a second comment period to allow reply comments on the newly arisen issues, or alternatively the agency might publish a second NOPR instead of moving onto the Final Rule.

What is most important to remember about the comment period is that this is one of the best opportunities for you, as either a private citizen or a member of an organization, to directly impact and influence the regulations that will affect you.

Final Rule

After the completion of the NOPR, the agency will ultimately publish a Final Rule in the FR. The format of the Final Rule will look very similar to that of the NOPR, with the same general sections and analyses. However, the ‘Dates’ section will no longer dictate when the comment period will close—rather it will indicate the date that the new regulation is effective (generally within 30 days of publication).  The Final Rule now represents the new law of the land and will include a section of what changes need to be made to the CFR (as well as the effective date)—these changes can be a whole new section to the CFR, removing existing sections, or piece-by-piece edits to CFR text. This changing of the CFR text is the final step in the rulemaking process.

Congressional Review

In accordance with the Congressional Review Act, all Final Rules are subsequently reviewed by Congress. If both the House and Senate pass a resolution of disapproval of a regulation within 60 days (without Presidential veto), the Final Rule becomes void and cannot be republished in its existing state. Such overturning of Final Rules is typically uncommon, however, as Congress only successfully exerted this power one time from its inception in 1996 through 2016 (though the unique political climate in 2017 led to the Congressional Review Act to be successfully invoked 14 times, leading some to debate the merits of retaining this Congressional power and a bill proposed in the Senate to repeal it).

Despite the Congressional Review Act, the role of Congress in the rulemaking process is typically to simply grant the regulatory powers to the agencies, leaving the details and analysis to the experts employed by the agencies.  It would be naïve to think, however, that the final direction ultimately chosen at the end of a rulemaking was not influenced by politics. After analyzing and presenting all the facts on the table, the final direction resides with the priorities and policy preferences of the leaders of the agency and, by extension, the Executive Branch.

How you can participate

As stated earlier, one of the key components of a federal regulation that separates it from a law is the built-in mechanism to solicit feedback from the public. There are a few different ways this feedback is collected, each with their own advantages.

Public Comments

As mentioned earlier, after each NOPR, private citizens and interest groups alike are engaged to comment on the proposed rule, enabling them to directly affect the final regulations in a way not typical of all public policy. There are several primary goals of collecting these public comments:

  • They give citizens, interest groups, companies, and any other affected group the opportunity voice their position on the potential rule and how it might affect them by providing information the agency might not have been able to gather on its own;
  • They help the agency to improve the final regulations by considering this previously undiscovered information or vetting the information it did gather; and
  • They reduce the likelihood that stakeholders find issue with the regulations and bring those complaints to the courts.

To accomplish these goals, the continued engagement (both formal and informal) of the public is critical. Those who are submitting comments, though, should take note that the process dictated by what position receives the greatest volume of comments. Rather, the content of each comment is added into the public record of the rulemaking along with the data, expert opinions, and other facts. The comments are your opportunity to convince the agency that there is additional data to consider or new arguments to address. These comments can shift the direction of the rulemaking if they are factual, demonstrable, and convincing, as all comments made on the public record are then mentioned and specifically addressed in the subsequent publication stage—either agreeing with them or presenting reason to refute them. Later, I plan on writing a blog post that will give some tips and tricks on how to make public comments as effective as possible at influencing the rulemaking (update: read blog post on how to make effective public comments here).

Interviews

While preparing any of the public notices, the federal analysts might contact stakeholders (interest groups, affected companies, etc.) to be interviewed about the facts behind the regulation. Engaging in these conversations before the publication of the NOPR and Final Rule allows for a constructive and in-depth back-and-forth where the stakeholder can work to convince the analysts about their point-of-view. When these interviews occur, they are often the best opportunity for a stakeholder to convey their arguments and influence the rulemaking.

Public Hearings

Another way these key stakeholders are engaged by the rulemaking process is through public hearings. These hearings often occur after each NOPR or preliminary notice, though they are only required by certain agencies. The agency will specifically invite the key stakeholders to attend, though they are open to the public for anyone with an interest in the rulemaking. Public hearings are another opportunity where back-and-forth discussions can occur, both for the agency to explain the proposal and answer questions about the analysis that has been put forth and for the stakeholders to argue their cases in person. The other unique aspect of these public meetings is they allow for an on-the-record dialogue between the different stakeholders themselves, should there be disagreement among them.

Keeping Informed

If you want to keep up with potential new rulemakings that are of interest to you, the FR allows you to subscribe to customized daily updates. You can have all FR notices from a specific agency emailed to you every day they become available, or you can even subscribe based on keywords—regardless of which agency it comes from. To subscribe, create an account on federalregister.gov and then add subscriptions at this link.

Example of what an email from the Federal Register will look like if you subscribe to DOE notices

Additionally, at least once a year every agency publishes a regulatory agenda. This agenda will outline the planned regulatory and deregulatory actions for the coming season or year. If there is a particular agency whose regulations are of interest to you, follow this link to read the list of current regulatory items on the agenda.

 

Sources and Additional Reading:

A Guide to the Rulemaking Process- Prepared by the Office of the Federal Register

The Federal Rulemaking Process: An Overview– Congressional Research Service

Regulations and Rulemaking Process FAQ- Office of Information and Regulatory Affairs

Learn the Steps in the Federal Rulemaking Process

About the Rulemaking Process- United States Courts

Flowchart of the Federal Rulemaking Process- Citizen.org (this resource is more in depth than the title ‘flowchart’ will make you think—but a great, thorough resource)

From two specific federal agencies of interest to the topics in this blog:

Appliance & Equipment Standards: Department of Energy Regulatory Process

The Basics of the Regulatory Process: United States Environmental Protection Agency

 

Related Posts:

Federal Register Notice: Costs and Benefits of Net Energy Metering: Request for Information

Federal Register Notice: Test Procedure for Distribution Transformers: Request for Information

Article updated on October 10, 2017

 

 

About the author: Matt Chester is an energy analyst in Washington DC, studied engineering and science & technology policy at the University of Virginia, and operates this blog and website to share news, insights, and advice in the fields of energy policy, energy technology, and more. For more quick hits in addition to posts on this blog, follow him on Twitter @ChesterEnergy.  

Chester Energy and Policy- An Introduction

Welcome to the first entry to the “Chester Energy and Policy” blog. In an attempt to keep this short, I’d just like to give a brief introduction of myself and why I am starting this blog, as well as give a preview as to what types of posts I plan on writing to fill my tiny corner of the internet.

My name is Matt Chester, and I am a professional in the energy technology and energy policy fields in Washington, D.C. You can find a more extensive look at my experience and background in the About: Me section, but the quick hits are the following:

  • My educational background is in Mechanical Engineering, with a focus in Civil Engineering as well as Science & Technology Policy.
  • I have held several positions as a contractor in the federal policy arena, all of them with me focused on consulting various offices of the Department of Energy (DOE).
  • My passions have always laid in public policies that promote energy efficiency, energy independence, and advancement of renewable energy—specifically in the analysis of relevant data, technologies, and news.

As I have held a number of positions in the consulting and federal energy arenas, I have been itching to create an outlet for me to share my outlook. I created this blog to find and refine my voice when it comes to energy and policy issues, share with others what I have already learned and continue to learn every day, and advertise myself as a potential resource for people to tap into for any help they might need– either in a formal or informal manner.

I will also make the point here, as well in any subsequent posts where it might be particularly relevant, that I intend to avoid anything particularly political. I am not here to comment on political appointments or partisan debates—rather I intend to focus on analysis of facts. There will be certainly be times where there are developments in the politics of the energy field, and in those cases I will comment on the policy process itself, but I intend to avoid advocating for or against any particular policy. I base this in my educational background as an engineer and my professional background as a consultant—I will allow myself to analyze and present facts, but wherever it may bleed into political debates I will leave it to the reader to make their own conclusions based on those facts.

Though this creative and professional endeavor of mine is only in its infancy at the time of this posting, I already have a number of series of posts in development. Below you will find 11 different articles series, as well as a brief introduction to the types of posts you can expect to find in those series. Currently, my plan will be to publish a new post at least once a week, though if inspiration strikes then I will certainly not hold back on posting more frequently. I also plan to roll out a social media presence for my blog posts simultaneously with the posting of this first article—please see this blog’s official Twitter account , and I will also post a link to this blog on my professional LinkedIn account. Through those outlets, as well as through email and the comments section of each post, I would love to hear any and all feedback or constructive criticism. Please also share with your friends and colleagues, let me know if you have an idea for a topic you’d like me to discuss, or tell me why I’m wrong if you disagree with something I post.  All manners of feedback are welcome!

Article Series:

  • Insights and Advice: Using my experience as a consultant involved in various DOE processes, these articles will be my venue to share some insider tips and tricks about those federal energy and policy processes. Whether through detailing the intricacies of the federal rulemaking process, analyzing the energy policies coming through the Federal Register, or providing copy-editing advice for technical and/or government writing, the “Insights and Advice” series will highlight some best practices and provide the perspective from a career consultant to the DOE processes.
  • Technology Highlights: One of the best questions I ever got asked during a job interview was to pick a specific energy-related technology and explain it in a simple way such that a non-technologically literate person (the interviewer said my grandmother, but hey—there are plenty of tech-savvy grandmas out there!) could understand. The ability to explain highly technical concepts to people who do not have a technical background is not always easy, but it is crucial in both the technology and policy worlds as technologies advance at breakneck speeds and widespread understanding remains crucial to the nation’s energy systems. In the “Technology Highlights” series, I will break down energy technologies that are useful to individual consumers as well as commercial enterprises with digestible and easy to understand guides.
  • Development in Energy Policy: The landscape of energy policy in the United States is fast moving, and it can be difficult to keep track of all of the developments. I intend to use this article series to highlight news and progress in energy policy, break down the issues, and make clear how those developments might affect you.
  • Checking in on the Federal Register: Similar to the “Development in Energy Policy” series, this series of articles will shine a spotlight onto the incremental process of federal energy policy. Specifically, when there are notices in the Federal Register—the daily government journal where official agency rules, proposed rules, and public notices are published—relevant to the energy topics of this blog, I will read, summarize, and comment on those postings so you don’t have to do so yourself.
  • DOE in Focus: Most people outside the Department of Energy don’t fully realize the breadth of DOE’s mission, the wide-ranging projects constantly underway, or how many programs, offices, and laboratories there are across the nation performing amazing work. In the “DOE in Focus” series of articles, I will feature specific offices and laboratories, give some background into their histories and missions, and highlight some interesting recent projects and developments at those locations.
  • Profile of Organizations in Energy: Outside of public agencies, there are countless organizations–  both businesses and non-profits– that put energy at the center of their focus. This article series will serve to highlight some of the great work being done by these enterprises, and if we’re lucky they’ll allow for opportunities to speak directly with people in those organizations.
  • History Lessons: Both technology and public policy are extremely incremental processes where you can only really understand the current landscape and developments if you trace back through the historical precedents. With that in mind, I intend to periodically dive into landmarks of energy and policy past and provide overviews and context. In doing so, I intend to relate these “History Lessons” articles to the relevant news of the day.
  • Data Corner: Having gone to engineering school, I’ve long loved diving into data sets and excel models. The “Data Corner” series will be my opportunity to focus in on various data sources— e.g., publicly available DOE data and energy-efficient technology market data—and play with different methods of data visualization and statistical analysis.
  • Book Reviews: The “Book Reviews” series of articles is pretty self-explanatory—as I read books on energy technologies and policies (and use this article series as motivation to add more of these books to my personal reading list), I will write up my thoughts on the book. I will evaluate the books based on its content, readability, and fact-based authority, ultimately giving them a rating on a scale of one to five stars.
  • Product Reviews: The market for products for the energy conscious consumers is rapidly expanding these days, as being “green” is no longer niche and sustainability is at the forefront of everyone’s minds. The “Product Reviews” series will enable me to shamelessly buy the latest products for myself to test out at home and write up my thoughts and reviews.
  • Fun Off-Topic: In this series of articles, I will highlight some less serious topics related to energy and policy. These topics will be lighthearted and fun, a break from the more data and factually heavy topics, including pop culture depictions of energy topics, looking into the energy related topics of some of my various hobbies, or anything else that might pop into my head.

While these are just the article series that are planned out at this point, there are certain to be additional articles outside of these 11 umbrella topics that I get inspired to write and new article series will be added. If you have suggestions about a series of articles outside of the above you’d be interested in, feel free to leave a comment or send me an email.

So to sum up, thanks for reading this far and I hope you continue to check back regularly for updates and new articles as I flesh out this website!

 

 

About the author: Matt Chester is an energy analyst in Washington DC, studied engineering and science & technology policy at the University of Virginia, and operates this blog and website to share news, insights, and advice in the fields of energy policy, energy technology, and more. For more quick hits in addition to posts on this blog, follow him on Twitter @ChesterEnergy.