There is a heightened sense of focus on regulation in the energy markets, as the Obama administration has made appointments in energy regulatory agencies and the Federal Trade Commission (FTC) issued its Final Rule on manipulation in the petroleum markets. This publication discusses the Obama administration's regulatory appointments and priorities, the regulatory jurisdiction of a possible cap-and-trade market, the FTC Final Rule, and the administration's regulatory focus on renewable energy and smart grid technology.

The Obama administration appointed chairmen to the Federal Energy Regulatory Commission (FERC) and the Commodity Futures Trading Commission (CFTC) who reflect the administration's focus on regulation. Regulation is also a key issue in a proposed cap-and-trade program, and debate continues over how a newly created market would be regulated. Also, the FTC Final Rule prohibiting market manipulation in the petroleum industry became effective in November 2009.

The Obama administration's regulatory priorities also include renewable energy. The FERC and the Minerals Management Service signed a memorandum of understanding on jurisdictional responsibilities for leasing and licensing renewable energy projects on the U.S. Outer Continental Shelf. The FERC also adopted its Smart Grid Policy Statement, which sets priorities for the development of smart grid standards.