DEPARTMENT OF ENERGY FISCAL YEAR 1979 AUTHORIZATION (ENERGY CONSERVATION) HEARINGS BEFORE THE SUBCOMMITTEE ON ENERGY CONSERVATION AND REGULATION OF THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE NINETY-FIFTH CONGRESS SECOND SESSION ON S. 2692 A BILL TO AUTHORIZE APPROPRIATIONS FOR THE CIVILIAN PROGRAMS OF THE DEPARTMENT OF ENERGY FOR FISCAL YEAR 1979, AND FOR OTHER PURPOSES COMMITTEE ON ENERGY AND NATURAL RESOURCES HENRY M. JACKSON, Washington, Chairman FRANK CHURCH, Idaho J. BENNETT JOHNSTON, Louisiana CLIFFORD P. HANSEN, Wyoming JAMES A. McCLURE, Idaho DEWEY F. BARTLETT, Oklahoma GRENVILLE GARSIDE, Staff Director and Counsel SUBCOMMITTEE ON ENERGY CONSERVATION AND REGULATION J. BENNETT JOHNSTON, Louisiana, Chairman JOHN A. DURKIN, New Hampshire, Vice Chairman FLOYD K. HASKELL, Colorado HOWARD M. METZENBAUM, Ohio WENDELL R. ANDERSON, Minnesota LOWELL P. WEICKER, JR., Connecticut BENJAMIN S. COOPER, Professional Staff Member Bardin, Hon. David J., Administrator, Economic Regulatory Administra- Buckley, John G., vice president, Northeast Petroleum Industries, Inc____ Johnston, Hon. J. Bennett, a U.S. Senator from the State of Louisiana___. Beattie. Donald A., Acting Assistant Secretary for Conservation and Solar Applications, Department of Energy, accompanied by Douglas Harvey, Dr. Maxine Savitz, Frank Stewart, and John Brogan___. Johnston, Hon. J. Bennett, a U.S. Senator from the State of Louisiana__ Heffelfinger, William S., Director of Administration, Department of En- ergy, accompanied by William P. Davis, Gregory J. Cavanagh, and Sam- Curtis, Hon. Charles B., Chairman, Federal Energy Regulatory Commis- Hansen, Hon. Clifford P., a U.S. Senator from the State of Wyoming- Johnston, Hon. J. Bennett, a U.S. Senator from the State of Louisiana_ Davis, Walter, president, Basin, Inc., Midland, Tex.. Giroir, Joseph, on behalf of Mid-Continent Systems, Inc--- Johrston, Hon. J. Bennett, a U.S. Senator from the State of Louisiana.-- Mitchell, Douglas B., executive vice president, National Oil Jobbers Coun- 835, 839 Roper, John Dee, on behalf of Koch Industries, Inc__. Smith, Clair S., president, P. & O. Falco, Inc., Shreveport, La., H. A. True, Jr., vice president, True Oil Co., Casper, Wyo., and D. Dale Shaffer, Vice Metzenbaum, Hon. Howard M., a U.S. Senator from the State of Ohio____ APPENDIXES 867 869, 870, 915 DEPARTMENT OF ENERGY FISCAL YEAR 1979 AUTHORIZATION (Energy Conservation) THURSDAY, APRIL 13, 1978 U.S. SENATE, SUBCOMMITTEE ON ENERGY CONSERVATION AND REGULATION, Washington, D.C. Also present: Benjamin S. Cooper, professional staff member; James T. Bruce, counsel; and Danny Boggs, deputy minority counsel. Senator DURKIN. We don't have a gavel in this room so I will dispense with the formalities. I think everyone knows what we are here for. I want to point out that Senator Johnston's statement, and not mine, will be printed in the record. [The prepared statement of Senator Johnston follows:] STATEMENT OF HON. J. BENNETT JOHNSTON, A U.S. SENATOR FROM THE STATE OF LOUISIANA The Subcommittee hearing this morning will be devoted to the programs of the Economic Regulatory Administration (ERA) of the Department of Energy. This Administration is responsible for a broad range of programs, including crude oil and refined product price and allocation regulations; the entitlements program; the coal conversion program; the Federal contingency programs for use during energy supply emergencies; the public utility rate reform advocacy and assistance programs of the Federal government; and substantial portions of the Federal regulation of imports of crude oil, electric power and liquified natural gas. The President's request for fiscal year 1979 appropriations for ERA, including all pesonnel costs for 2,000 ERA positions, is just under $100 million. Substantial funding requirements to accommodate programs authorized by the energy legislation pending in conference committee are not included in this budget request. I expect that the Subcommittee will want the programs in the conference committee bill to go forward, but this does not mean that we automatically endorse the $100 million level of the President's original request. We will want to see this request rigorously justified. In my opinion, many of the decisions made by ERA are open to serious question. For example, I am in strong disagreement with the program establishing a "trigger" for prices of home heating oil. The Congress established a mechanism for removing price and allocation controls for individual petroleum products. That mechanism was used to decontrol home heating oil. If the law is to have any meaning at all, it should not be used to retain controls in the guise of a system for monitoring petroleum prices. I am deeply concerned by reports that a trigger-monitoring system, perhaps in even more complex form, will be proposed by the Department in connection with gasoline decontrol. In my view, we either have Federal controls on these products or we remove those controls. There ought to be no ambiguity and no residual Federal harassment of individual petroleum marketers. (1) |