The Need for a Political Roadmap: The Story of American Energy Conservation Policy Since the

1970’s

Robert D. LifsetJoe C. and Carole Kerr McClendon

Honors College

University of Oklahoma

The Role of Energy Policy in Energy TransitionsEnergy Transitions and Society

John E. Sawyer Seminars on the Comparative Study of Cultures

Boston UniversityJanuary 28, 2011

Source: National Archives and Records Administration, ARC number 555518 and 555474

Source: National Archives and Records Administration, ARC number 550092

Source: Energy Information Administration/ Annual Energy Review 2009. Figure 5.1 Petroleum Overview, 1949-2009

Petroleum Overview

Source: Energy Information Administration/ Annual Energy Review 2009. Figure 5.13a Estimated Petroleum Consumption by Sector

Estimated Petroleum Consumption by Sector

CAFÉ- Corporate Average Fuel Economy• the sales-weighted average fuel economy of a manufacturer's fleet of current

model year passenger cars or light trucks, manufactured for sale in the United States

• set mandatory fuel economy standards for new cars and small trucks after the 1977 model year (MY)

• 18 miles per gallon (MPG) for 1978 MY with gradual increases leading to 27.5 mpg for 1985 MY

• A company could sell cars that did not meet the new standards, so long as it sold a compensating number that got better mileage, to bring the company’s average up to the requirement.

• if a manufacturer does not meet the standard it is liable for a civil penalty of $5.50 for each 0.10 mpg its fleet average falls below the standard, multiplied by the number of vehicles sold in a given model year and reduced by the number of credits available to the manufacturer

– Credits are earned when a manufacturer more than attains the standard in any model year and may be banked or borrowed for 3 years on a rolling basis.

Source: Energy Information Administration/ Annual Energy Review 2009. Figure 2.8 Motor Vehicle Mileage, Fuel Consumption, and Fuel Rates

Motor Vehicle Fuel Rates

Ford Pinto

New Light Vehicle Market Shares by EPA

Size Class, 1975–2005

Source: U.S. Environmental Protection Agency, Light-Duty Automotive Technology and Fuel Economy Trends: 1975 through 2005, July 2005

Some of the Energy Conservation Programs ended by the Reagan Administration

• solar energy research and development• wind energy and ocean thermal development• research on electric vehicles and methane fueled transport• residential energy efficiency• energy conservation for commercial buildings• consumer education on energy conservation• small scale hydro-electric projects• energy audits by public utilities

Crude oil prices since 1861

Source: BP Statistical Review of World Energy, 2007Source: BP Statistical Review of World Energy, 2009

Source: Energy Information Administration/ Annual Energy Review 2009. Figure 5.3 Petroleum Imports by Type

Petroleum Imports by Type

“Conservation might be a sign of personal virtue, but it is not a sufficient basis for a sound, comprehensive energy policy.”

Vice-President Dick Cheney

April 3, 2001.

Source: Energy Information Administration/ Monthly Energy Review, December 2010. Figure 3.3a Petroleum Trade Overview

Petroleum Trade Overview

The End