The Natural Gas Policy Act of 1978 (NGPA) is federal legislation that had been enacted as a response to US natural gas shortages of 1976–77. It was enacted for the following motivations:
The NGPA:
The Natural Gas Policy Act (NGPA) was the first building block in a plan from the Carter Administration to increase energy supply while reducing domestic consumption of energy.[2] It preceded the Energy Security Act that President Carter would sign into law in 1980.[3]
In the 1970s, natural gas was persistently in short supply throughout the 1970s, largely because of following:
Based on this type of energy setting in the 1970s, Congress enacted the NGPA. The act was intended to raise natural gas rates to market clearing levels.[4]