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1993
National Energy Policy Act of 1992
Summary of Provisions Relating to Global Climate Change

The National Energy Policy Act of 1992 was sent to The White House and signed by the
President in October 1992. Title XVI of the Act establishes a national policy on global climate
change. Legislators took a positive, proactive approach to the climate change debate,
establishing a research agenda that should signi?cantly improve the information now available to
policy makers. The legislation re?ects the concern by many members of Congress that too little
is known about climate change science and the economic costs of climate change regulations.
The title on global climate appropriately emphasizes further research and studies, in addition to
voluntary actions by industry.

Following are highlights of the National Energy Policy Act as it relates to global climate change.

Global Climate Change Report

Section 1601 requires the Department of Energy (DOE) to submit a Global Climate Change
Report to Congress within two years. The report will assess the feasibility and economic,
energy, social, environmental, employment and competitive implications of greenhouse gas
stabilization and emissions reduction scenarios.

The Global Climate Change Report also will assess the recommendations made by the National
Academy of Sciences in its 1991 report, "Policy Implications of Greenhouse Warming,"
including an analysis of the associated bene?ts and costs, and the extent to which the United
States is acting on those recommendations in comparison with other countries.

The following assessments will also be in the report: feasibility of reducing carbon dioxide
emissions by 20 percent from 1988 levels by 2005; the feasibility of reducing the generation of
greenhouse gases; and the impact of the Framework Convention on Climate Change on the

United States.

Least-Cost Energy Strategy

Section 1602 requires DOE and the president to include a "least-cost energy strategy" in future
National Energy Policy Plans. The strategy will aim to achieve more e?icient energy use,
stabilization and eventual reduction of greenhouse gases, increased use of renewable, and a
reduction in US. oil consumption. In developing the least-cost energy strategy, DOE must
weigh the economic, energy, social, environmental and competitive costs and bene?ts (including

the impact on jobs).

New Position: Director of Climate Protection

Section 1603 requires the DOE to establish a director of climate protection to serve as a
representative for all executive branch work on global-climate change.

Alternatives to Emissions Reductions

Section 1604 requires the President to assess alternative policies to reduce greenhouse gas
emissions, including emissions caps and federal energy efficiency standards for major emitters.

Inventory and Voluntary Reporting of Greenhouse Gases

Section 1605 instructs the DOE to estimate baseline greenhouse gas emissions for 1987 through
1990. This national inventory of greenhouse gases, based on data currently available to or
obtained by DOE, must be updated annually. DOE is not given any new authority for collecting
data.

Section 1605 also calls for voluntary reporting of greenhouse gases. DOE will issue guidelines
for the voluntary reporting of data on sources of greenhouse gases by individual emitters. These
guidelines will establish procedures for accurately reporting information on: (1) greenhouse gas
emissions for the baseline period of 1987 through 1990 and for subsequent calendar years
annually; (2) annual reductions of greenhouse gas emissions achieved through any measure; and
(3) reductions in greenhouse gas emissions through voluntary actions, plant or facility closings,
and state or federal requirements.

Technology Cooperation

Section 1607 requires the DOE to develop programs to encourage the export and promotion of
domestic energy resource technologies. Section 1608 establishes a technology transfer program
through the Agency for International Development (AID). This program has been authorized for
$100 million for 1993-98.

Treasury Fund

Section 1609 requires the Treasury Department to establish a fund (authorized at $50 million in
1994) to assist global efforts to adapt and respond to climate change.

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