ExecutiveOrdersEO
EO 12287Executive OrderReagan · R

Executive Order 12287

Decontrol of crude oil and refined petroleum products

This executive order immediately removed federal price and allocation controls on all crude oil and refined petroleum products that had been in place under the Emergency Petroleum Allocation Act of 1973. The Secretary of Energy was directed to promptly revoke related regulations, though certain programs including state set-asides for middle distillates, mass transportation allocations, and the Canadian Allocation Program were temporarily preserved until March 31, 1981.

46 FR 9909
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Impact dates

  1. Secretary to promptly review and eliminate reporting/record-keeping requirements

  2. State set-aside for middle distillates expires

  3. Special allocation for mass transportation expires

  4. Canadian Allocation Program expires

  5. Order effective immediately

Key directives

  • Exempt all crude oil and refined petroleum products from price and allocation controls
  • Secretary of Energy shall promptly revoke related regulations
  • Continue reporting/record-keeping until eliminated or modified by Secretary
  • State set-aside for middle distillates remains until March 31, 1981
  • Special allocation for mass transportation remains until March 31, 1981
  • Buy-Sell lists and orders remain effective per their terms
  • Canadian Allocation Program remains until March 31, 1981
  • Secretary may adopt regulations to implement Order including entitlements notices and adjustment mechanisms
  • Order effective immediately without advance notice or public procedure

Who is ordered

Timeline

Immediate

  • Price and allocation controls lifted on all crude oil and refined petroleum products
  • Order effective immediately upon signing
  • Secretary of Energy to promptly revoke unnecessary regulations

Near term (90d)

  • State set-aside for middle distillates expires March 31, 1981 (62 days)
  • Special allocation for mass transportation expires March 31, 1981 (62 days)
  • Canadian Allocation Program expires March 31, 1981 (62 days)
  • Secretary to review and eliminate reporting/record-keeping requirements (except emergency planning/energy information)
  • Secretary to issue entitlements notices and adjustment mechanisms for pre-Order periods

Long term

  • Structural shift from regulated to market-priced petroleum sector
  • Potential entitlements adjustments for prior periods to be completed

Risks & tensions

  • Immediate implementation without public procedure risks market disruption and price volatility
  • Vague 'promptly' timeline for regulatory revocation creates implementation uncertainty
  • Mass transit and state set-aside carve-outs suggest political sensitivity to consumer/voter impacts
  • Pre-Order entitlements adjustments could create prolonged administrative disputes
  • Economic distortion risk cited as justification for bypassing standard administrative procedure
Executive Order 12287: Decontrol of crude oil and refined petroleum products · Executive Orders