energy

Energy is the capacity to perform work or produce power. As infrastructure, energy is delivered through various systems utilizing electricity, natural gas, oil, nuclear power, and renewable resources. In a legal and regulatory context, energy also encompasses the production, transmission, distribution, and consumption of these resources, as well as the policies and institutions that govern their use to ensure affordability, reliability, environmental protection, and national security.

For much of American history, the federal government played a limited role in regulating the energy sector. During the Great Depression and World War II, the federal role expanded through the creation of a fragmented regulatory framework involving multiple agencies. The Manhattan Project also initiated federal involvement in nuclear energy, laying the foundation for future nuclear regulation.

The energy crises of the 1970s prompted a more coordinated federal response. In 1977, Congress created the Department of Energy (DOE), consolidating various energy-related functions and establishing a national energy policy for the first time. The purpose of federal energy regulation is to ensure affordable and reliable energy while protecting the nation's economic, environmental, and national security interests through a combination of market oversight and targeted intervention.

One of the earliest federal energy laws was the Federal Power Act of 1920, which established the Federal Power Commission (FPC) to regulate hydropower and interstate electricity transmission. Amendments in 1935 and 1986 expanded its scope. In 1977, the Federal Energy Regulatory Commission (FERC) was created within the new Department of Energy, replacing the FPC and assuming many of its functions. FERC is an independent agency responsible for regulating the interstate transmission of natural gas, electricity, and oil (excluding the sale of oil). It licenses hydroelectric projects, enforces reliability standards, and addresses related environmental concerns. FERC is led by five commissioners appointed by the president and confirmed by the Senate, with no more than three commissioners from the same political party. Commissioners serve staggered five-year terms. FERC also uses an internal dispute resolution process that helps reduce the burden on federal courts.

Nuclear energy is regulated by the U.S. Nuclear Regulatory Commission (NRC), an independent agency established in 1974 following the split of the Atomic Energy Commission. The NRC oversees the civilian use of nuclear materials and facilities, ensuring public health and safety through licensing, rulemaking, inspection, and enforcement activities. It also plays a role in national defense by regulating the secure use of nuclear materials.

In recent decades, energy policy has moved toward partial deregulation, especially in electricity markets. Deregulation seeks to increase competition among suppliers and reduce energy costs, though significant federal oversight remains. In many states, consumers can now choose their electricity provider, reflecting a shift away from traditional vertically integrated utilities. This restructuring introduces competition at each stage of the energy supply chain, from generation to distribution, while federal and state regulators maintain key oversight roles.

Federal energy laws are codified primarily in Title 42 of the U.S. Code (Public Health and Welfare), but also appear in Title 16 (Conservation) and Title 30 (Mineral Lands and Mining). Additional regulations are found in Title 10 of the Code of Federal Regulations, which covers nuclear energy and other technical energy matters.

See also:

Federal Material

U.S. Constitution
U.S. Code
Code of Federal Regulations

Additional Sources 

Agencies, Committees and Organizations:

[Last reviewed in July of 2025 by the Wex Definitions Team] 

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