Energy became a major issue in Montana in the early 1970’s. While oil and coal production and electric generation have a long history in Montana, it was proposals for a massive expansion of coal mining and conversion, followed by the oil shock of 1973, that caused energy policy to become a focus of state government. Most of the major legislation dealing with energy policy was passed by 1979. Not until the issue of electricity restructuring in 1997, and the recent efforts to deal with its aftermath, did energy regain as much attention in the Legislature, the Executive and the public eye.

On April 23, 1973 (before the oil embargo of October 1973 raised energy to a national crisis), Governor Judge created the Montana Energy Advisory Council (MEAC) to expand on the work of that group, to gather and interpret energy data for the governor. MEAC was chaired by the Lieutenant Governor. It was renewed in 1975, after the Legislature suspended the siting of coal and uranium conversion facilities until the governor developed a comprehensive energy policy (HB 453). MEAC was replaced in 1977 by the Montana Energy Office (MEO), located in the Lieutenant Governor’s office.

In response to various federal initiatives, MEO grew beyond developing energy policy and advice. It took on responsibility for conservation and renewable energy outreach programs funded by what is now the Department of Energy. The federally mandated program for the allocation of gasoline and diesel fuels was moved from the Civil Defense Division to MEO. MEO continued until 1978, when—following the retirement of its director for reasons of health—it was merged with the Energy Planning Division of Department of Natural Resources and Conservation (DNRC) to form the Energy Division.

As part of state government reorganization in 1995 the Planning and Analysis Bureau of the Energy Division was moved to the Department of Environmental Quality (DEQ) where it currently exists as part of the Planning, Prevention and Assistance Division in the Energy and Pollution Prevention Bureau.