Goals for State-Federal Action

Oil overcharge settlement funds have been made available to states from the Department of Energy through the settling of claims against the oil industry for the overcharge of petroleum products. NCSL is appreciative of Administrative and congressional action to disburse authorized unclaimed overcharge monies to the states.

NCSL believes that the refunded oil overcharge money disbursed to states should be used for energy-related purposes. Emerging federal and state emphasis on conservation and energy efficiency programs has created a state need for funds to develop and implement new programs. Existing state grants administered through the Department of Energy need additional money to accomplish program goals. Some states are unable to meet the growing demands of their energy programs with state money alone.

Therefore, NCSL strongly supports expeditious pass-through of oil overcharge settlement funds by the Department of Energy to states only to supplement, and not supplant, energy related programs. NCSL opposes efforts to reduce or eliminate or take credit for federal funding of existing energy related programs such as the Weatherization Assistance Program, the Institutional Conservation Program, the State Energy Conservation Program, and programs authorized to be funded by the Energy Policy Act of 1992, based on the receipt of oil overcharge settlement monies. NCSL also opposes the diversion of oil overcharge monies from their intended energy uses.

As oil overcharge and settlement funds are depleted, Congress is encouraged to appropriate replacement or supplemental funds to facilitate continued state involvement in worthwhile energy programs.