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The Energy Policy and Conservation Act of 1975 (EPCA) () is a
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
Act of Congress An Act of Congress is a statute enacted by the United States Congress. Acts may apply only to individual entities (called private laws), or to the general public ( public laws). For a bill to become an act, the text must pass through both house ...
that responded to the
1973 oil crisis The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had su ...
by creating a comprehensive approach to federal energy policy. The primary goals of EPCA are to increase energy production and supply, reduce energy demand, provide energy efficiency, and give the executive branch additional powers to respond to disruptions in energy supply. Most notably, EPCA established the Strategic Petroleum Reserve, the Energy Conservation Program for Consumer Products, and Corporate Average Fuel Economy regulations.


History

The need for a national oil storage reserve had been recognized for at least three decades. Secretary of the Interior
Harold L. Ickes Harold LeClair Ickes ( ; March 15, 1874 – February 3, 1952) was an American administrator, politician and lawyer. He served as United States Secretary of the Interior for nearly 13 years from 1933 to 1946, the longest tenure of anyone to hold th ...
advocated the stockpiling of emergency crude oil in 1944. President Harry S Truman's Minerals Policy Commission proposed a strategic oil supply in 1952. President
Dwight Eisenhower Dwight David "Ike" Eisenhower (born David Dwight Eisenhower; ; October 14, 1890 – March 28, 1969) was an American military officer and statesman who served as the 34th president of the United States from 1953 to 1961. During World War I ...
suggested an oil reserve after the 1956
Suez Crisis The Suez Crisis, or the Second Arab–Israeli war, also called the Tripartite Aggression ( ar, العدوان الثلاثي, Al-ʿUdwān aṯ-Ṯulāṯiyy) in the Arab world and the Sinai War in Israel,Also known as the Suez War or 1956 Wa ...
. The Cabinet Task Force on Oil Import Control recommended a similar reserve in 1970. But few events so dramatically underscored the need for a strategic oil reserve as the 1973-74 oil embargo. The cutoff of oil flowing into the United States from
OPEC The Organization of the Petroleum Exporting Countries (OPEC, ) is a cartel of countries. Founded on 14 September 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), it has, since 1965, been headqua ...
sent economic shockwaves throughout the nation. In the aftermath of the oil crises, the United States established the SPR.


Strategic Petroleum Reserve

The EPCA declared it to be U.S. policy to establish a reserve of petroleum, setting the Strategic Petroleum Reserve (SPR) into motion, and extended the
Emergency Petroleum Allocation Act The Emergency Petroleum Allocation Act of 1973 (EPAA) was a U.S. law that required the President to promulgate regulations to allocate and control price of petroleum products in response to the 1973 oil crisis. It was extended by the Energy Polic ...
of 1973 (EPAA). A number of existing storage sites were acquired in 1977. Construction of the first surface facilities began in June 1977. On July 21, 1977, the first oil—approximately of Saudi Arabian light crude—was delivered to the SPR. Fill was suspended in FY 1995 to devote budget resources to refurbishing the SPR equipment and extending the life of the complex. The current SPR sites are expected to be usable until around 2025. Fill was resumed in 1999.


Energy Efficiency


Corporate Average Fuel Economy

Part A of Title III of the EPCA established the Corporate Average Fuel Economy standards for automobiles. The average fuel economy for model years, 1978, 1979, and 1980 were set at 18, 19, and 20 miles per gallon, respectively, and by 1985 the average economy was required to be 27.5 mpg. Furthermore, automobiles were required to be labeled with their fuel economies, estimated fuel costs, and the range of fuel economy for comparable vehicles after the 1976 model year. The
National Highway Traffic Safety Administration The National Highway Traffic Safety Administration (NHTSA ) is an agency of the U.S. federal government, part of the Department of Transportation. It describes its mission as "Save lives, prevent injuries, reduce vehicle-related crashes" relat ...
was given the authority to regulate fuel economies for automobiles and light trucks.


Energy Conservation Program for Consumer Products

Part B of Title III of the EPCA established the Energy Conservation Program, which gives the Department of Energy the "authority to develop, revise, and implement minimum energy conservation standards for appliances and equipment." As currently implemented, the Department of Energy currently enforces test procedures and minimum standards for more than 50 products covering residential, commercial and industrial, lighting, and plumbing applications.


Crude oil export ban, 1977-2015

The law has banned crude oil exports, with the U.S. Commerce Department able to grant exceptions for certain types of oil. In 1980, crude oil exports peaked at 104 million barrels, dropping to 43.8 million barrels in 2013. The exceptional export licenses were for oil from
Cook Inlet Cook Inlet ( tfn, Tikahtnu; Sugpiaq: ''Cungaaciq'') stretches from the Gulf of Alaska to Anchorage in south-central Alaska. Cook Inlet branches into the Knik Arm and Turnagain Arm at its northern end, almost surrounding Anchorage. On its so ...
, oil flowing through the Trans-Alaskan Pipeline System, oil exported to Canada, heavy oil from California, certain trades with Mexico, and some exceptions for re-exporting foreign oil. When oil is processed, e.g. distillation, it can be exported without a license. Although, the export ban was quoted as a reason why crude oil was discounted $10 below the world price from early 2014 throughout 2015, as measured by the West Texas Intermediate benchmark, this claim has not been supported by empirical research. Oil producing companies and oil producing states, such as Texas, Alaska and North Dakota lobbied to lift the ban.Jonathan Thompso
A crude oil export ban primer
High Country News, 14 September 2015. retrieved 21 December 2015
Oil refineries have been against lifting the export ban, because their raw material, the sweet, light domestic crude was available at a low price. In June 2015, the Obama administration had permitted the export of sweet, light oil for the import of heavy, sour oil from Mexico. Environmental groups have opposed lifting the ban because it would mean more oil sales, more drilling and more oil production with all its environmental impacts, increasing emissions of carbon dioxide and other pollutants. On December 18, 2015, Congress lifted the 41-year-old ban. Republicans favored lifting the ban and in return agreed to not block a $500m payment to the UN Green Climate Fund and tax breaks for solar and wind power.US spending bill lifts 40-year ban on crude oil exports
BBC.uk, 18 December 2015, retrieved 21 December 2015


Other provisions

The EPCA contained several policies to encourage the production of domestic energy sources. It authorized a program to promote coal production that would guarantee qualifying underground coal mining operations up to $30 million per project. The qualifying requirements are tailored to promote more environmentally friendly development and smaller coal producers. Recipients of the loan guarantees are required to have a contract with a customer who is certified by the
Environmental Protection Agency A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale ...
to operate their plant in compliance with the Clean Air Act. At least 80% of the total guarantee amount must finance low-sulfur coal development. Finally, large coal or oil companies are prohibited from receiving loan guarantees. Complementary to the increased coal production goals of the legislation, the EPCA also provided mechanisms to allow the government to ensure that natural gas and petroleum based fuels are available to consumers in times of fuel shortages or crises. The
Federal Energy Administration The Federal Energy Administration (FEA) was a United States government organization created in 1974 to address the 1970s energy crisis, and specifically the 1973 oil crisis.Staff report (May 8, 1974). Energy Crisis Still With Us, Nixon Warns. ''Los ...
's authority to require power plants to burn coal instead of natural gas or petroleum based fuels was extended through 1977. This mechanism would reduce the use of these fuels for power generation and free them for use by other consumers. Furthermore, the President was given authority to order maximum domestic oil and gas production, and the President was directed to submit plans for energy conservation and energy rationing in case of a fuel shortage.


References

{{Reflist


External links


Energy Policy and Conservation ActPDFdetails
as amended in the GPObr>Statute Compilations collection

US Department of Energy
1975 in law 94th United States Congress United States federal energy legislation Energy conservation Petroleum politics