Since 1986 states have been receiving restitution funds from oilcoompanies and crude oil producers found to have overpriced or miscertified federally controlled crude oil to avoid price restrictions between 1975 and 1981. As of march 31, 1989, the states had more than $3.7 Billion available for expenditure, including earned interest, and had received federal approval to spend about $2.2 Billion (63%). These funds have been earmarked for a wide range of energy conservation programs in residential and commercial structures, industry, and transportation. Because there have been several court judgments and because of the complexities of the project approval process, it is not clear how much oil overcharge money is being used to support transportation energy conservation projects. However, available data suggest that the transportation sector is receiving less than 12% ofthese funds. In 1988, transportation accounted for more than 63% ofu.S. Oil use. Within the guidelines of the court settlements, a variety of transportation energy conservation programs are eligible forfunding with oil overcharge funds. The u.S. Department of energy's administration of oil overcharge funds is discussed and the kinds ofprojects that state and local officials should consider in successfully developing a conservation program are illustrated. This paper appears in transportation research record no. 1267, Global warming: transportation and energy considerations 1990.
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