ML19294C188
| ML19294C188 | |
| Person / Time | |
|---|---|
| Issue date: | 02/14/1980 |
| From: | Harold Denton Office of Nuclear Reactor Regulation |
| To: | Morse L AFFILIATION NOT ASSIGNED |
| Shared Package | |
| ML19294C189 | List: |
| References | |
| NUDOCS 8003070297 | |
| Download: ML19294C188 (13) | |
Text
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- 'k UNITED STATES NUCLEAR REGULATORY COMMISSION e
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D E WASHING TON, D. C. 20555 g
February 14, 1980 Mr. Larry E. Morse 2950 Bainbridge Avenue Bronx, New York 10458
Dear Mr. Morse:
Your letter of September 19, 1979, to President Carter about licensing procedures was referred to the Nuclear Regulatory Commission by the Department of Energy on January 22, 1980.
You may be interested in the enclosed Chapter VII of the Second National Energy Plan transmitted to the Congress by the Pre,ident on May 7,1979.
This chapter is entitled " Making Decisions Promptly and Fairly." See particularly Section C on " Managing the Long-Term Energy Problem: The Institutional Framework" and Section D on " Fairness in Energy Policy."
Sincerely,
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@ Harold R. Denton, Director Office of Nuclear Reactor Regulation
Enclosure:
As stated
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90th Congress,1st Sesalon - - - - - - - - IIouse Document No.96-121 g
SECOND NATIONAL ENERGY PLAN MESSAGE FROM THE PRRSIDENT OF THE UNITED STATE 8 TRANSMITTING THE SECOND NATIONAL ENERGY PLAN PUR8UANT TO SECTION 801 OF TIIE DEPARTMENT QF ENERGY ORGANIZATION A0r MAY 7,1979.-Message and accompanying papers referred to the Committee of the Whole llouse on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 45-o04 0 WASIIINGTON : 1979
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185 CHAPTER VII KAKING DgCISIONS PRGtPTLY AXD FAIRLY
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Almost overnight, the world energy problem created a a;ew agenda of public issues.
Suddenly, there la se urgene need for global, motional.
State, and local ma a gement of energy decisions. The U.g. must prepare for sudden supply eorgencies.
It must pursue eew energy projects and expanded production evea se environaeatal constraints become more stringent.
And economic security and equity for all Americane become critical concerne as rising world oil prices threates an improved U.g.
etandard of living. These and other aspects of the energy problem will test the strengtha sad weaknesses of democratic government.
The Nation must find ways to debate openly the issues on its energy agenda without sacrificing its capacity to make final decisioe,a. It must make decisione in a careful but timely manner--before, not riter, the problem worsena.
Regulatory delays and legislative stalemacia bring ij unintended policy outcomes and threaten the Matloa's ability t o manage I;
the energy transition. Certain directions will be fiercely debered, and I
perhape rejected. No can will be sesved, however, if the countar een*yt agree on any directione at all.
Th i s Ch a pt e r addresses the management of energy decisions and the d
ins titutional re sponse to the energy problem.
There are many dimes-sions to the successful management of energy problems.
gone programs
'l must dost with future supply interruptiosa or other ahocks. There emot be programs to address the consequence s of the current traaima short-fall.
Other programa must address the need for more streamlining and less contusion in the energy decision process. Still others must y
grapple with the problems of fairases in e nergy policy.
la general, i
the y seek to establish a process for representing and reconciling the intereste of the Federal goveranaat. States. local goverament, indua*
i try, and private citineas la major energy decisions.
A.
Managina Future Energy Crisser Emergency planning An energy strategy must deal with the threat of embarywa and emergracy supply interruptions, as well as with the long-run tigatening of world oil marke ts.
Just as individual citiseas, edio must plan for possible adversity la their own lives, can of ten jols with othere similarly threatened to share riska and thereby limit team, the bation, editch must have a strong domestic plan for dealing with future crises, can gain by joining la concerted actice with other coasianing countrise.
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18G 187-FLAkNING AT THE INTERNATIONAL IgVIL 1EA's emergency oil-sharing program has received greater public attention than the longer-term actions.
The oil-sharing system set up by 1EA In 1974, the U.g. most other member-nations of the Organisation for Preeuses that in the event of a major disruptica la oil supplies, each Economic Cooperation and Development (DECD) agreed to cooperate on setton would make en equal escrifice in both conservatipo sed the 411oca, energy matters through a new international organisation, the In te r-tion of available oil.
When triggered, the plea calla for each Sewa1Ty national Energy Agency (IEA), which has become the principal institu-to activate a set of emergency demand-restraint measurse to reduce tional framework through ubich the major industrialised energy-consuming consumption by the amounts sp9cified la the agreement.
countries are workias together to reduce their collective and individual dependence on imported energy (particularly 011). The basic aims of the 1EA-la which the United states has assumed a strong leadership role-ere FLWING AT THE MATIONAL LEVEL 4
to:
i The Nation's otrategy emphastase development of a large government-o Reduce escesalve dependence on oil through energy conservation, owned oil reserva and various stand-by mandatory cosservation mesaurre, development of alternative energy sources, and energy research and such as gasoline rationing, for use in amargeocles, development; 6
o Fromote cooperative relations with oil-producing count rie s and The Strateate Petroleum Reserve with other oil comeuming countries with a view to stabillslag I
international trade in energy; When completely filled, the Strategic Petroleum Esserve (SFR) will contain 1 billion barrels, of oil; it will be the largest goverassat-o Malatain a permanent f r amework for comeuttation with oil owned oil reserve la any industrial country.
(Daly four other coung l
companies; tries currently have any such rese rve.)
As planned, the SFR would be i
capable of meeting most embargoes and eme rgeac t es, tacluding a mejor Fromote a comprehemalve systen of information on the international oil shortfall of up to 6 m1111oe barrels per day-two-thirds of the o
j oil market; and Nation's importa-for up to 6 monthe, os e abortf all of 3 306B0 for e The Department of Energy will soon have about 93 millice barrels year.
f o Pisa common measures to meet oil supply emergencies and stored to salt domes in the Gulf erse, roughly 10 percoat of Ste ultimato disruptione and to share available oil supplies la the event of target.
Ef fective use of SFR in en emergency cogid prevgat suddes 1
such emergencies.
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often create."I ***rgy use and the economic damage that such curta11mente r -
Since the creatica of the IEA la 1974, considerable progress has bees made towards the achievement of these basic goals.
The larger the Reserve grows, the greater will be its deterrent 31ue.
By mitigating the economic damage of an embargo or other 1 ster.w1&on, is October 1977, for esemple, the klaisters from Member Countries agreed the SFR can buy the Nation time to resolve the probleme underlying the tot supply interruption.
Potential A rearise would recognise that the Reserve can protect the U.S. for so long a period that a potentist o Inderse a set of Principles for Energy Folicy to guide IEA embargo on their part would bring unacceptable loeses og goveege to t)e countries in implementing national energy policy meashree; producer countries.
6 o Limit total oil imports to IEA countries as a group to not more The smaller the Reserve, the lese its deterrent value. The Esties i
than 26 million barrels per day by 1985, and to set further group would be reluctant to offset fully any immediate lose valeas the Reserve objectives for subsequent years; and were kawa to be large enough to meet the country's needs for a consider-t ~
able period.
Periodically review each country's contribution o
au that, if necessary, national energy policies could be strengthened further With the high U.S. import dependance that to projected over the neat is order to achieve the IRA group objectives.
decade and beyond, a billioo-barrel Reserve v11Lbg valuableJegwasse
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y-188 Igg ta almost any energy f uture.
Indeed if world prices are low. U.S. 011 measures equally entreme.
With certain voluntary and administrative importe would tacrease and maintata their current share of total U.S.
energy consumption.
Without greater import diverstfication, the U.S.
measures to encourage conservataan and fuel ovitching. the U.S. Can meet could find itself equally vulnerable or even more vulnerable in the the supply shortfall without overreacting or drawing dows its inventories
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i mid-term.
f THE INTERNATIONAL RESPONSg Emergency Conservation Plane Last month. the President instructed his delegation to the International f
In addition to the SF3. the Administration has developed 'various stand-by mandatory conservation plane for use la case of severe supply int e r ru p.
Energy Agency to seek international cooperation to reduce petroleum
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tions or to meet U.S. obligations la the iga oil-sharing agreement.
conauaption. Sharing the shortfall helpe ensure that neither the United States nor any other nation will bear a disproportionate share of the Recently, the President subattted to Congress a gasoline rationing plan burdens associated with the toes of production from Iran.
and three stand-by conservettoa plana.
Stand-by plans for restricting weekend sales of gasoline and f or mandatory thermos tat settings in On March I and 2 at a meeting of the IEA Governing Board, the United non-reside ntial buildings are discuased to the contest of the Admini-States and the other IEA member-natione entered into a joint agreement to reduce oil import demand by 2 million barrels per day (MMgD). rough!)
h stration*e response to the trentaa oil shortfall.
5 percent of IEA consumption, by the end of 1979. To achieve this goal.
The gasoline rettostos plan would be used only se a last resort during each country will adopt programa of its own choosing.
l a supply interruption more serious then the current Irantes shortf all.
Indeed. gasoline rationing probably would not be invoked unless the The agreement among member countries calle for reesamination of the U.S. supply shortf all were well to excess of 10 percent..
Under the actual level of savings required as international oil supply and market pass. the Treasury would issue gas rationing checke (denominated in conditions evolve.
The agreement also provideo for review of the i
gallone of geseline rather than dollare) on the baste of State motor individual programe that member countries adopt. A meeting of the vehicle registrations.
The checke would be redees,able for coupons at Governing Board on May 4 1979, provided a forum for review of these banks and other specified locations.
All passenger cars would receive lane and for assessing the prevailing oil supply and demand altuation.
the same allotment, regardless of dif ferences la their fuel efficiency.
Trucks and buses would receive larger allotmente.
Priority allotments TRg NATIONAL RESPONSE would go to essential public services - police and fire vehicles and Individuals with needs smaller than average could sell a The U.S. share of the agreed-to savings ranges up to 1 million barrela ambulances.
of oil per day.
To ensure that the U.S. can meet these 1stgete the portion of their coupona la a " white market" allowed for such purposes
- Freendent has aanwneed the foltoning measures:
Once the current " pre-implementation" vstk for this system has been completed. it would be poselble to put gasoline rationing ta effect o Mandatory Buildinz Thermostat Settinte.
The President seked the within 90 days.
Almost inherently. no such system can be complete 1Y Congress to approva quickly a standby mandatory conservation plan fair. eensitive to the asede of each individual family and driver, that would require thermostato in non residential bu$1 dings tg be especially whos it to intended for emergency circumstances.
At best*
set no higher than 65* in winter. and so lower than 80 is it can achieve only rough equity, and for that reason, among othere.
the U.g. should turn to gasoline rationing only as a last resort.
The Fresident sent the plan to Congress on March I. 1979, pursuant to Section 552 of the Energy Policy and Conservation Act. By law.
B.
Manamina the current Shortfall: The trenten Response Plan Congress has 60 legislative days - or until May 14 - to act on the plan.
The President called for earlipt action by the loss of Iranian Congress.
The disruption in world oil markets caused by the recent supplies is not severe enough to require gasoline rationing or other VII-5 VII-4 i
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191 190 f
If voluntary cooperation does not realise the savings needed to f3 The Free fdent announced his intent to implement this plan as evoid oil shortages, the Fraside nt stande ready to direct the
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soon as Congreso approves it.
It is settmated that, when imple.
Department of guergy to use the Federal Power Act to order mante4 this measure will reduce demand for toports by 195.000 to wheeling or transf er of electricity among utilities, f
390.000 barrels per day by the end of 1979.
b The President also called upon State regulatory commientone to D ate Actions to Reduce Casoline Coneuer.tton. The remove any asisting regulatory impediments to the gransfer of g
a voluntary Preside nt will set state-by-etate targets for curbing gasoline I
electricity.
consumptfon.
Each state will be asked to implement voluntarily a plas of its own choice to meet these targets.
The President Estimated oil envings range from 100.000 to 200.000 barrels per day, depending on the season and the overall total electricity k
andicated that he hopes these voluntary actions will avoid any i
need f or mandatory action and will schieve needed oil savings.
demand.
To the extent that consumere cut back electricity requitJoente Voluntarily, more power will be eve 11abl4 to back r
Weekend Cloetnam of Casoline Stettone and Alternative out use of oil mow being used to getarate electricity.
o Ma..Jatory State Plane.
If the voluntary state reductions do not schieve adequate savings, and if shortages of gasoline esist, mandatory o Switchinn From 011 to Natural Cas.
The President urged the measures would be imposed. The President transmitted to Congrees pation's utilities and other major industrial users of oil without on March 1 a plan seeking standby authority to mandate clnaing coal-5urning capability to switch to natural gas wherever ak of gasoline stations for all or part of the weekend.
If this Possible.
To f acilitate this evitch, the Departenat of Energy l
plac were imple me nt ed, this measure would save an settmated hans 12).000-235.000 barrels per day by the end of 1979.
The President recognised the dif ficulties implementation of this
- secommended a policy of short-term, direct purchases of gas by gae-capable facilities now using oil, particularly l
plan would cause in some states, particularly those with econo.
distillate; mies that are heavily dependent on tourism. Af ter entensive l
coneuttation between Depart ment et Energy and State officiele.
- segun a survey of pipelines and distributore to ideatif y the President submitted an amendment to the plan under which surplus deliverability; states would be permitted to develop alternatives to the federal i
Fromulgated rules to allow purchas e of formerly intrastate standby weekend closing plan.
gas by interstate pipelinseg and If mandatory closings are required. States first would be to develop their own alternative piene and would them to the Department of Energy for approval 30 days
- Implemented a program to help match available gas supplies pe'rmi t t e d l
with prospective users.
submit I
prior to implementattoa.
A state would have 60 days to demon.
I errate that its alternative plan had accomplished its sesigned Should these measures f ait to ensure maximum use of the surplus.
levels of gasoline envings.
For any state which chose the Department will emplora using allocation and other powere to 5
targetto develop an alternative plan or a state whose plan f ailed ensure this f uel switching.
gavinge f rom oil to gas evitching act to achieve the specified level of savings, the federal weekend are estimated at 250.000-400.000 barrele ser day, depeedtog on closing would automatically go into ef fect.
seasonal natural ses demands and the at.ilability of surplus gas.
Under a masimum program. 500.000 ba rate of oil per day Flectricity Trenefers.
Signif ic ant savings of imported oil can could be replaced with natural gas beginning an 1980 j
o be realised by using electricity generating capacity available at plante powered by coal to replace oil-fireJ electrical generat-o Low Sulphur Fuel 011.
The Administration to determined to tag waite.
The President urged all of the uation's utilities to cooperate with the Department of Energy to make maximum use of prevent environmental health regulations from belog used as as escuse for price-gouging. la cases where abottages o$ loq-egiphur excesa non-oil-ftrad generating capacity.
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193 192 The government will continue to emphasise purchase of fuel-efficient autos for Federal use and energy efficiency in new j
buildings. In addition, $254 million is included in the FT 1980 t
fuel oil appear to esist and where states request temporary President's budget to retrofit esisting Federal buildings for ousponeton of Clean Air Act standarda, the Adelaistrator of EFA will consider unusually large increasse in the price dif f erential conservation.
between complying and noncomplying f uele as a beste for recommend-The President has called upon the Govermore to take einitar ing approval of state suspension requesta.
The President has actions to reduce energy use et the state govermaeot level.
directed the Administrator of EFA to take into account price dif f erentiale and to provide the President with information on price differential increases when making recommendations to him on such rogueste. The Freefdent also will consult with the THE FUgLIC RESPONSE 5ecretary of Energy prior to making his deterstaation.
each citisen can help to achieve conservation j
o Deferral of the Oc t ober 1 1.e ed-Phasedown sequirement.
The Individual action by current Environmental Protection Agency schedule for the phase-goals while minimising the intervention of the federal government E
dova of lead la gasoline calle for a stamfard of 0.5 grams of into the everday life and business of Americess. The President is lead per sellon (gpg) to be met on October I, 1979 If this calling upon each and every American to make tosservation an important schedule were fully impleme nt ed, gasoline ave 11aH11ty would be estura of their daily lives.
octane requiremente for lower lead gasoltme could increase The President also is calling upon every driver in the United States to reduced by 350,000-450.000 barrale per day.
In addition, higher ref ine ry crude oil requiremente by 30.000 to 60,000 barrele per reduce travel by 15 miles per week.
If a!! drivers were to reduce day.
The Frealdest has directed the savironmental Frotection travel that auch, this action alone could save 450.000 barrels of cil Agency to def er the phasedown to the 0.5 gpg lead level for one per day.
Driving fewer siles per week can be accomplished easily by year, and sobotitute instead an 0 8 spg standard.
This substi-leavieg the car at home one day each week, and instead using mass ransit, corpoole. or walking, where appropriate.
tute standard will protect those urban childres most vulnerable to lead and will avoid 75 percent of the lose la gasoline produc-tion that the 0.5 spg standard would have caused.
TEg gTFECTIVEWESS OF THE RESPONSE FLAN Reduction in Federet Covernment Energy Use.
The has directed heads of executive agencies to curb their If each of these measures is fully implemented, the United States cas o Five Percent energy use by 5 percent la the year ending March 31
- 1980, reach the goal of up to a 5 parcent reduction la oil coneusptica the President This go.1 will fuiiy offset the i., acts of the E
e cludi co.1 use.
Activittee of the Dee rt eat of Defense Preside.t h.e set.
from this toes of production from Iran, and will permit rebuildlag the stocks of directive.
In reaching this objective, the esecutive agencies crude oil, gasoline, beating oil, and distillate aseded to prevent essential to maintain operational readinees are esempt hortages in the future.
are directed to:
,arious measures could reach 850,000 to The total savinge of thes*
1.540,000 barrete per day.
These eavings will grow substantially as Reduce their.:e of autooctive fuele by 10 percent; buildins thermostate ao lower than the incentives,, wided by decontrol taie ef fect.
gy 29:2. for. a.,le, soo durias the summer cooling season a nd no higher than savinge from decontrol should reach 520,000 to 600,000 barrete per "E
- Erfective immediate17, set 65o for working haute and 558 for non-working hours dap These demand restraint measures would fulfill the U.S. commitments to duttag the winter heating season; to the tranian ebortf all, but 40 act represent any IEA sade in response ormal obligations of the U.S. under the terms of IEA s ypement.'
Take any other steps necessary to achieve the 5 percent
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Estimated enargy savinge are 20,000 barrels of oli per day.
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2 195 194 In a pu d of debate mr f utuu pdicy meetim, de new Deputunt The trantaa geoponse Flaa is discussed la detail in an appndia to this h as a manda te broad enough to avoid a alaston oriented commitment to one set of energy technologies.
gegulation, research, technology report.
development, and commercialtaation programe are more likely to harmonise
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with changing s pecif ic conce rns in the near-tern and mid-term periode.
C.
'Mananina the Lona-Tern Enerav problems The creation of a new cabinet agency for energy--as both the energy The Institutional trenework prchten and the energy debate have intensified--has not been easy.
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I In many ways, Americans seem to be able to cope with sudden crises
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- II better than they deal with paroistent, loag-tern problems.
Although eho rt-t e rm probleme may dominate for the moment. the long-tern pro-blems will remata af ter the headlines have shif ted to other topics. It Expedittna Enerav Dec 4 tone is crucial that effective mechaniene be available to deal with those long-term problems.
The process by which energy projects are approved or permitted has become needlessly comples.
That procese should ensure the caref ul and deliberate conalderation of all relevant factors, particularly protec-CARETING OUT INTEINATIONAL 325FONS131LITigg tion of the environment.
However, when the procase has been ccepleted.
i Through the IEA, and through a series of bilateral agreemente, the upacW to acWM W nsMm1 WW amH m WE O
s" United Statas le working with other consuming countries toward a more
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estisfactory energy future.
For essaple, IEA countries are seeking to timit their collective oil imports to 26 million barrels per day in in recent years, many important new snergy projecto--such se pipelinas, 1985.
The IEA reviews the adequacy of member country energy policy seaporte, and refineries--have become entangled in comples Federal and contribution towa rd the achievement of this obj ect ive.
la addition
- State pe rmit ting processes.
In some cases, the Federal governeset can agreemente for the anchange of scisatific information, both in the iga expedite decisione simply by putting its own house la order.
It can and bilaterally, can help advance new technologies.
streamline or consolidate various authorities to spaurs 14s3 decisione i
car. be made la a reasonable time.
CARATING OUT RATIONAL RESPONSIBILITIES In other cases, such as the Alaskan oil and gas pipeline and the gobie pipeline project, the Federal government any be required to take special The energy organisettone and procedures which estated in the early
- I 1970s were forged la an era of stable and abundant supplies of cheap e ne rg y.
When tested by the pressures of this decade, they were found 8 ** U #
I' wanting. lastituttoos became paralysed and tadecisive. Ad hoc arrange-i' Delays in permitting increase the costa of new energy prejects. They can lead to unintended policy outcomes and und6eirable snargy uses.
For example, obsolete oil-burning plante may stay la service long af ter they should be retired because new powerplants have not come on line Cetting the Government's House in Order cos - in pue rpla nt la one state nquiru nearly 'M permits.
until the formation of the Departneat of Energy, the confusion of he Federal energy programa mirrored the national confusion on the energy costs of nuclear power have spiralled in part due to regulatory delays p rob le m.
Diverse organisations, with different legislative mandates that have no relation to the proper consideration of safety or enviroe-and constituente, pulled la dif ferent directicas.
mental issuee.
The pe rmit ting problems for coal, auctsar, and other energy supplies are likely to worses es the make beatga ettee for The creation of the saw department af f orded, for the first time. an
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opportunity to bring together la a consistent way the development of energy policy and the implese.tation of regulatory, research and opera-tional nepossibilities.
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196 197 The number of permite required itself poses a significant problem.
o On the basis of the information submitted. oms will suggest to the Many such permite are relatively easy to obtain, but each additional President deadlines for Federal actions for each facility, and new permit requirement can add more cost and delay.
Since these new permit requiremente apply only to f acilittee that do not yet exist. no keep the President informed of agency performance la meeting i
organised constituency has a strong interest in opposing the new require-those deadlines.
mente.
All levels of gove rnment and all intereste claim a right to be o oms will assure that, as much as possible, analtjagency revieve consulted in the dectogon to build a fac111ty, and they frequently exercise that right by imposing new permitting requirements.
Delays are conducted cooperatively and concurrently, g
from this proliferettom of permite must be stopped if tranettional ene rgy suppites and new t echnologies are to be brought on as needed.
o gecause state permite are critical to moving energy projecte forward. oms will seek joint review proceseas between Federal s
and state bodies where necessary.
Federal Permit Deadlines.
We Prealdent will sign an Executive Order ins truct ing the Of fice of Management and gudget (OMg) to establish and administer a ayeten to set deadlines for Federal dectatone on critical Legislative Responses.
In some instances, new legislation will be energy f acility permit applications. The President is urging states to required to streamline processes or to expedite worthwhile projects, set strict timetables for their permitting actions. The system will work The Administration supporte legislation, discussed sleewhere in this as follows:
report. to reduce the unnecessary and duplicative steps la siting and licensing nuclear power plants, without in any way compromising safety.
o OMg will establish and administer a system of dead!!nes for To this end, the President has directed the D% ertment of gnergy to work dectaton making by non-indep ende nt Federal regulatory agencies with California officials and Congressional committese to secure enact-on non-nuclear ene rgy facilitiae that the Freeldent considere ment of Federal legislation which will ensure that the gehto pipeline can critical. Die review will not in any way change the statutory be built, while protecting both air quality and the concerna of state and responsiblittles of the agencies.
local governmente.
o CMg will require each reviewing Federa; agency to submit certain information on each project selected.
The required information Loan Cuarantees.
he President has directed the Department of georgy may include:
to submit to Congrees a proposal to streamline D0g's current authority to issue lose gua:antees for a broad range of energy technologies. Dog gatinated dates for submission of. complete Federal applica-must have the flexibility to prceide timely fineacial incentives to tions f rom project sponsoreg perrait early demonstration of important but commercially usproven energy technologies. With this authoTity. a range of technologies Target final Federal deciaton dates on each eigolficant could be demonstrated. at little or no cost to the Federal government.
permit or statutory reviewg The technologies eligible for lose guarantees range from renewable energy sources to high gTU cool gasification projects.
- Actions required of other Federal agencias and non-Federal authorities to allow flaal Federal decisiong
.v CAggT1pc OUT STAfg AMD LOCAL 338FOd8131L17138
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- Further action required of the applicant to allow final Federal deciatong and In recent years, state. regional, and local governmente have assumed a broad range of new energy responsibilities. The requirements that states Semi-annual or more frequent progress reports. including administer energy programa have prolif erated, sometimes without adequate specific reasons for any slippage in target final Federal consideration of State needs.
In some cases, these programs are too decintos dates.
narrowly focussed to address important state energy conceras. In other cases, legislation has imposed responsibilit%e-euch as for residential VII-12 conservation, and emergency planning-on 3..tes but did act authorise funds to carry out those responsibilities.
VII-13
'r 198 199 Both the St a t e s and local govermeente should be full partners with the special energy projects to be undertaken by local goverments and Indian Federal gov ernment in designing the Nation's energy strategy.
St a te s tribes. These special projects could serve as demonstrations or models and local governments can play a vital role as " laboratories" in trying or creative new approaches to local energy problems.
out new conservation and supply init iat iv es.
St a ta s and local govern-mente eleo generally are better situated than the Federal government to Finally, gMPA will pernic States to consolidate applications for deal with enerav problems at specific s it e s. As in U.S. environmental assistance programa administered by the Department of gnergy, which gives policy, many of the powere needed for effective action on the Nation's States greater flexibility in using program administration funds.
energy problems are those traditionally reserved to the States or local I
governments.
Planning and siting for energy f acilities is one.
Others The Administration believes strongly that the national energy probles are implementation of minimum conservation standards for new buildings.
requires the concerted action of all levels of government acting in and design of utility rates. Furthermore. States in different regions of partnership.
gnactment of gMyA is critical to the creation of that the country confront dif ferent types of energy problese. In addressing artnership.
many regional energy problems, cooperation among St at e s is important.
Last year, the Administration of fered legislation to improve planning D.
Fairness in gnergy Policy and management of St ate energy activities, and will propose similar legislation this ye ar.
The Energy Management Partnership Ac t (EMPA)
There le nothing fair or equitable about the impact of rising world oil will help the States develop their energy planning and management prices on U.S. citizens. Price increases add to inflationary pressures, capabilities.
DIFA will consolidate these esisting Federal grant pro-elow economic growth, and affect the U.g. etandard of living. In grame, and will give States more resources to carry out energy activi-short, working Americana and tirir families--and especially those who are ties within the framework of an overall 5 tate energy management plan.
less well of f-would bear the brunt of world oil prices hikes. Artifi-l The bill would authorise $110 million annually over five years.
cially low prices on domestic supplies would do nothing at all to reduce this problem.
On the contrary, they would es. courage it.dustry EMFA would eliminate a number of esisting mandatory State responsibili-and coneuwers to use traditional oil and gas re source s even faster.
t ie s Wille imposing new requirement in the area of energy planning
- The inevitable transition to higher-cost energy supplies would come energency preparedness and use of newable resources.
St a te s could ooner, and the Nation would be less prepared for that transition.
esphasise ind ividual projects and progran actions to encourag e State-level conservation and renewable resource development, and seek to remove The most equitable or fair energy policy is one that seekg to limit barriers and address other site-specific problems that hinder conserve-the economic damage from the long-term rise in world oil prices.
tion and renewable resource develogment within the State.
States also Conservation, fuel-ovitching and production of oil substitutes are the would set measurable goals for conservation and production and evaluate main instruments to protect that basic economic securigy.to which every their progress toward those goals.
American is entitled.
Through EMFA. the Federal 6evernment also would recognise the expanding gut in a world of higher energy prices, more must be done to ensure energy role of local governmente. local governments have many energy and fairness and equity.
First, the Nation must provide special relief for energy-related responsibilitsee.
Some of these include. traf fic, socal those least able to cope with higher energy prices, second. it must tr ans port ation, soning and f acility siting, building codes, and in some develop alternatives-such as mass transit and new energy technologies-cases. lighting standards, emergency planning func tions and outreach 8'"I'1%*,***
that limit vulnerability to higher oil prices, especially for those Americana now dependent on automobiles.
Third. It must ensure that higher energy pricas do not unjustly enrich the oil industry.
EMFA would require states to "pses through" financial assistance to local government s to match their res ponsibilitie s in the State energy la particular, the Frosident has emphasised that his recent oil pricing plan.
The States also must involve the local governments actively in decision abould not uutairly increase profits of the oil industry. The develop ang these plans in the first instance.
Furthermore, the new windfall profits tas discussed earlier in this report would prevent testelation would authoriae $5 million annustly over five yeare for exces
.<e new revenues from accruing to oil producers, gy the end of 1982 45 to $7.5 bittion in revenues that would otherwise 30 to oil
, VII-14 VII-15 e
-J' 200 201 companies will flow instead to the government to establish the Energy DOE is also creating an Offic of Minority Economic Impact as authorised Security Fund.
Coupled with additional receipts fra the corporate in the National Energy Act to provide manageneat and technical assistance profits tax. $11 to $14 billion would be available to the Energy Security
.. well a loan program to enable minor ty '
g Fund over this three year period.
The Fund would addrese some of the business enterprises to participate la re,e rch. develo; ment. demoestre*
major welf are and equity impacts of higher energy prices.
gion, and other contract activities o Pa In addition to the windfelt profits tax, the foreign tan credit benefits should be limited in the future.
geform of Foreign Tax Credit Treatment to Oil Companies.
htti-national oil c apanies are r ec e iving unjustified benefits through foreign tas
-1.ow income Assistance.
The removal of price controle on oil
'l credite. which cost American taxpayers millions of dollare a year. The iaPac t all Aseracens. but the burden hill be heaviest f 1
Fresident proposes to close loopholes in foreign tax credit treatment h
abolds. t ho se who o pe nd the largeat proportion of the r do of these companies in two waye-one requiring legislation and the 01 bet ae racaty. transportataca and other energy-related necessities which can be done by regulation.
major purpo se. therefore. of the Energy Security Fund will be provide as s a s t anc e to those families whic h will het if the President will propose legislation which would strictly limit the crease a,n fuel prices resulting from decontrol.
United states tax casdit for a foreign country's oil and gas estraction income tan to the income on which those taxes are imposed. gacess O,'glitt wit! sa as Congre e to
,a.s a,o,t,on,,,,,,,,,,,
medits
-rned on foreign oil and... e tr.ction i.come wouid.ot be "a;.- o. t. 1~,ncome hou.ehoid. a,ou,b t,e Ene,,,
are to aett-ca-ine-g_ u,,,,
,u,4 about $100 per year o a typical to oc sehold.
The tas t re atment now available to these oil companies le not needed for continued emptoration and production.
This legislation will move ga addition to t h a.e assistance from the Energy Securit Fund' h*
enasting tax laws c our to in en expusud h %nH h M Department,of guergy has al. ready collected $60 miliian from susta
. i and 1976.
Passage will increase the United States tax revenues by $500 ageanat refaners for oil
- d under federal price contro reg scione Over $
id ans are still la litigation.
The President has direct d h The Fresident feels strongly that at a t ime when additional revenues a
unde are received. they be used to assist lower-income people vill be flowing to these multi-national oil companies. it.ip.ipciesbant at victims of the overcharges cannot be identified.
"pon the Congress to pass this legislation expeditiously.
a i
No U.S. catisen should be subject to a precipitous cut-off of energy In addition, the Department of Treasury current is revievi gula vital to his health and welfare.
The President has urged states to tions to tighten the foreign tan cred t or pass legislation that would prohibit cut-of f of heat and electricity laying down reasonable pranciples to govern t during the cold winter months.
Such St ate legislation la consistent ing IDE*II" I"#***
t**** -(which may be c re g
with the Public Utility segulatory Policy Act which encourages action income taxes) from royalttes and escise taats to protect low-income consumers.
as deductions).
Finally the Administration wi!! continue during FY 1980 weatherization grants for low-ancome households that higher energy prices.
have of fered some protection from g.
Public participation in the Developme92 OI I"IY I*Il'I If a workable energy policy ever is to be achieved in the United states.
both the policy and its development must be founded on a common under-The Minority Set-Aaide program.,
DOE will begin to develop a mino rit sta=iding of the nature of the energy problem and on en agreement on the u t-n ih ogram an coajunctaon wa,th the Energy Security Fund.
I appropriate sol ations. An important step in developing such understand-volume of DOE minorit
" " fit y c ont rac t s.
Dollar
""I
- I"***'
- "I "I
D 08 *M M IW is empected to grow dec asione about wat the policy should be. and in esecutina it.
threefold over 19;y, VII-16
l 3)3 202 Nor, given the different perceptions of the problem, did all partici-To involve the public in the develoPnent of the second National Ene.
partment of Energy conduc t ed a thorough outreach effor pants agree on the appropriate solutions.
A substantial number urged t[a that energy prices be held down by controls to protect consumers.
an.
Pu &c meetings were held and written comments we re Others felt that Federal controls have not been successful, and that.
there should be some mov eme nt--pe rhaps in stages--toward more market-solutions.
Yet many recognised that market solutions, while oriented yirst. during the week of November 27 through December 1 1973, pog advancing the goals of both conservation and additional domestic produc-conducted a series of sta e,minare in bashington.
D.C.
Each seminar unwanted e f f ects on the poor and on othere unable tion. cocid have 88 opportunity for substantive policy discussions between Dog significantly to alter their energy coesumption.
" f a ma r constituency groupe concerned w h nergy Policy. Se par ate sessions were held with en There was some ambivalence over the proper role of the Federal govera-producere consumers. state and local government agencies and instr a
ment in energy policy. There was a general tendency to favor less ies, bustaeas (including emell businese) end large industrial users. environamental groups. and labor.
government involvement.
Yet when concern was espressed that a parti-cular objective was not being met, the solution proposed of ten called for a greater government presence.
On balanc e, the public seems to 76ese seminars were followed in December by a series of eis public look to the government for leadership rather than excessive involvement.
8
" $LP-I tbrough t the United States in San Francisco, Dell e.
Do r
h m,e wa,,e,e,al a,,eemen,
,,a, emi,ine
,e,,,,o,,
,,,c,s,es
,e,d, o m m inge o,en.d w m. h.i,-da, mornin, eeset,:;o*;g,=,g;r;h;~
po icy., An overview of mgy.!I and discussion by a penet of part.
be slow, c umbe r some. and uns.eponsive.
As part of its larger program af ra ulatory reform, the Administration has proposed a number of pants tavited to represent dif ferent views within the region was measures to streamline regulatory processes and to remove institutional s
la the af'ternoon. aslected topies to energy conaarvation and production. without sacrificing the
- U r.
barriers of partacu er interest to the region were addressed in eiseller pane!-
ace the sessions was reserved opportunity for full consideration of legitimate but competing policy for pr sent tions by individual it those citisene and the panelists.
A number of participants advocated the adoption of particular solutions r technologies. There were repeated calla for increened conservat o Finally. when the t ime approached for tresidential decisions, senior increased domestic production of traditional sources, and for rap Administration of ficiate consulted informally with members of Congress, or These are all features of t a g,,elopma.ar of renewable resources.
represe ntatives of state and local governmente, and environment al and othc. inter.t groups.
, g g,,g e program.
se8ardless of their basic policy positions, many participants stated a The views empressed during preparation of the Plan reflect the diversity view that suggests a fundamental strength of this diverse nation. When of interests and concerne of the people of the United States.
One of resented with a clear and present threat to the Bational security a the reasone consensus on the appropriate direction of energy policy has
, 3,,gge,a way of life, the public is willing to work and to sect bee n elusive is the lack of a common understanding of the nature and fice to achieve larger National objectives.
severary of the ene r gy problem.
Not surprielogly, most of those who held opinions strongly enough to take the time to appear or to write It is too much to ask that individual citizens, appearing so briefly in were of the view that the problems associated with energy are severe.
a fairly structured framework. address all the tradeof fs. compleal e
althoev4 they did not agree on the nature of those problems. Fertici-and uncertainties of energy policymaking. They did not do so.
pants empressed concern with different aspects of the problem:
the mately the responsibility for balancing all these c,oseideratioes reste high level of imports. their ettendant coat. and U.S.
vulnerability; with the Administration and with the Congre s s.
This report. a costs of energy to the consumer. especially to rural Americans and the le devoted precisely to that balsacing.
gut that process aho poor; the long-rua depletion of traditional resources and the need to informed by the views expressed by the public in forma such as t plan the transation to aontraditional energy forme; and how energy 33p-11 hearings or similar kinde of meetings.
development af fects the environment.
ygg,gg VII-18
. of
bM Public participation in shaping and implementing energy policy is not l imited to formal heariage and seminare on Nf.P-II.
DOE has held over 50 public hearings on eifferent aspects of the implementation of the National guergy Act, passed last autumn.
Additional hearings and mechanisms for public par t ic ipa t ion will be available as the Nation continues to develop its energy policiso.
Finally. eac h individual is responsible for how he or she uses energy resources.
Th e Nation is not eone mindless machine, using energy according to en abstract formula.
It is millions of individuals.
making decisione every day on the production and consumption of energy.
Whether those use s are profligate or careful, fareighted or impulsive, will govern how the Nation weathers the energy crisis.
VII-20 e
I i
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