Energy Conservation and Conversion Act

Summary

Energy Conservation and Conversion Act - Title I: Import Treatment of Oil - Declares it to be the purpose of this title to reduce the dependence of the United States on foreign oil by imposing import restrictions, so that by 1985 the amount of such imports shall not exceed 25 percent of domestic oil consumption, and in order to place the United States in a position to deal with any oil embargo. Establishes oil import quotas, beginning in calendar year 1975. Authorizes the President to vary the import quota schedule when, due to weather conditions, economic factors, or delays in domestic production, he believes it is in the national interest to do so. Directs the President to establish an import licensing system for imported petroleum and petroleum products before December 31, 1975. Provides for the establishment of a separate licensing system for small refiners and independent marketers. Imposes a duty at a rate of 2 percent ad valorem with respect to petroleum, and 5 percent ad valorem with respect to petroleum products. Authorizes the President to adjust such rates of duty when he believes it is in the national interest to do so. Requires the President to notify Congress before increasing rates of duty. Directs the President to make an annual report to Congress on the operation of this Act. Authorizes the President to implement a system for the Federal Government to purchase or sell imported petroleum and petroleum products whenever he determines that the goals of reducing United States dependency on imports of petroleum and petroleum products and the securing of adequate supplies of such imports at reasonable and stable prices will be promoted. Establishes within the Federal Energy Administration an office of Petroleum Import Licensing and Purchasing. Makes it the duty of the Deputy Administrator for Petroleum Import Licensing and Purchasing to: (1) administer the import licensing system; and (2) administer the Federal purchase and sale of imported petroleum and petroleum products. Provides for congressional disapproval of a proposed plan for the Federal purchase and sale of oil imports. Title II: Gasoline Conservation Program - Imposes a tax of three cents a gallon upon gasoline sold by the importer or producer, beginning January 1, 1976. Provides for an increase in the rate of such tax for each year in which domestic gasoline consumption in the preceding year exceeded domestic gasoline consumption for 1973, up to a maximum of twenty- three cents a gallon. Imposes a tax in the same amounts as that imposed on gasoline upon special motor fuels, including benzol, benzene, naptha, liquified petroleum gas, and natural gasoline. Imposes an additional tax on noncommercial aviation fuel. Allows an individual a credit against such tax. Provides for the repayment of gasoline and special fuels conservation taxes to purchasers of fuel used for farming purposes, common carrier public land transportation passenger service purposes, and taxicab purposes. Title III: Other Energy Conservation Programs - Imposes an escalating automobile fuel mileage tax upon every automobile sold by the manufacturer, beginning with model year 1978, which exceeds specified fuel mileage rates. Specifies the amount of such tax. Exempts hearses, buses used for school or mass transit purposes, and ambulances from such tax. Repeals the excise tax on buses used for public transportation, radial tires, and rerefined lubricating oil. Allows an individual a tax credit for a specified percentage of the cost of installing insulation or solar energy equipment in his principal residence. Title IV: Energy Conservation and Conversion Trust Fund - Creates within the Treasury of the United States an Energy Conservation and Conversion Trust Fund. Authorizes an appropriation to the Trust Fund of amounts equivalent to the amounts received through the automobile fuel efficiency tax, the tax on business use of petroleum and petroleum products, and the gasoline and special motor fuels conservation tax. Directs the Secretary of the Treasury to manage the Trust Fund, and to invest such portion as is not required to meet current withdrawals in interest-bearing obligations of the United States, or guaranteed by the United States. Provides that amounts in the Trust Fund shall be available for purposes of conserving energy resources and expanding energy supplies through: (1) basic and applied research programs related to new energy technologies; (2) development and demonstration of new energy technologies; (3) programs relating to the development of energy resources from properties in which the United States has an interest; and (4) local and regional transportation projects. Limits the unobligated amount in the Trust Fund to $10,000,000,000. Requires that any excess be transferred to the general fund of the Treasury. Establishes an Energy Conservation and Conversion Trust Fund Review Board to review and evaluate programs and projects supported from the Trust Fund. Title V: Encouraging Business Conservation for Greater Energy Saving - Imposes a tax on the business use of petroleum and petroleum products as fuel. Exempts the fuel used by extractive industries, electrical utilities, and farms from such tax. Entitles every person to a deduction with respect to the amortization of the adjusted basis of: (1) coal processing equipment; (2) coal pipelines; (3) energy producing or saving waste equipment; (4) shale oil conversion equipment; and (5) railroad equipment. Allows an investment tax credit for the installation of any insulation or solar energy equipment in existing property used in a trade or business, or held for the production of income installed after March 17, 1975. Disallows an investment tax credit for electrical generating facilities fueled by petroleum or petroleum products placed in service after April 17, 1975. Allows a recycling tax credit in a specified amount for the amount paid by the taxpayer to purchase post-consumer solid waste materials which were recycled by the taxpayer within one year.

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2 official files

• Reported to Senate with amendment(s)

  summary · EN · 27 August 1976

  Open at official source

• Introduced in House

  summary · EN · 9 May 1975

  Open at official source

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