5 Things You Need to Know About the Petroleum Violation Escrow Account

Oil Industry Fines Fund "Green" Programs

Oil overcharge funds - also referred to as the Petroleum Violation Escrow Account (PVEA) funds - are the result of fines oil companies paid for violating established federal oil price caps in the years following the OPEC oil embargo in the early 1970s. The money, which funnels through the U.S. Department of Energy's State Energy and Weatherization Assistance Programs and the U.S. Department of Health and Human Services' Low-Income Home Energy Assistance Program, can be used for an array of energy efficiency and renewable energy projects. It's doled out in the form of grants given to states.

Eligibility For Funds

As an example of how funds are used, in California PVEA projects must result in energy savings or must somehow displace non-renewable energy while providing restitution to those affected by the oil price overcharges. Funds are allocated to transportation projects only by legislative approval and must be submitted in proposal form to the California Energy Commission and approved by the U.S. Department of Energy. The legislature appropriates funds annually.

What Departments Fund Projects

In California, the Energy Commission and the Department of Transportation are the main recipients of PVEA funds. The California Conservation Corps, the Department of Community Services and Development (one-time Department of Economic Opportunity), the Air Resources Board, and the Office of Planning and Research also have received funding.

What Funds Cannot Be Used For

Funds from the PVEA cannot be used as a replacement for existing funds for a project, nor can they be used to fund projects with restitution deemed too far in advance. Money from the fund is not intended for projects that focus on that which is environmental or safety-related, nor are they intended for projects that don't emphasize energy saving. The money also cannot be used to fund studies because they may never be implemented. Funds cannot go toward administrative expenses in excess of 5 percent.

What Funds Can Be Used For

In the past, the Petroleum Violation Escrow Account has been used to fund programs based on public transportation, computerized bus routing and ride sharing, home weatherization, energy assistance and building energy audits, highway and bridge maintenance, and reducing airport user fees.

Jennifer Olvera, a graduate of DePaul University in Chicago, has been writing professionally for over a decade. In addition to covering the "green scene" for publications such as Where Magazine and Crain's, she has become one of the preeminent dining, food, and entertainment writers in Chicago. She has regularly been published in Chicago Magazine, Chicago Sun-Times, Chicago Tribune, Zagat, Citysearch.com, and Gayot.com.