DEPARTMENT OF ENERGY ORGANIZATION ACT

TUESDAY, APRIL 19, 1977

HOUSE OF REPRESENTATIVES,

LEGISLATION AND NATIONAL SECURITY SUBCOMMITTEE

OF THE COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D.C.

The subcommittee met, pursuant to recess, at 10:10 a.m., in room 2154, Rayburn House Office Building, Hon. Jack Brooks (chairman of the subcommittee) presiding.

Present: Representatives Jack Brooks, John E. Moss, Benjamin S. Rosenthal, Don Fuqua, Dante B. Fascell, Frank Horton, John N. Erlenborn, and Joel Pritchard.

Also present: Elmer W. Henderson, staff director; William M. Jones, general counsel; Lawrence Russell, Guadalupe R. Flores, Craig J. Gehring, professional staff members; Susan E. Phillips, clerk; Richard L. Thompson, minority staff director; J. P. Carlson, minority counsel; and Stephen Daniels, minority professional staff, Committee on Government Operations.

Mr. BROOKS. The committee will come to order.

This morning we continue our hearings on the Department of Energy organization bill.

Yesterday this subcommittee received testimony from representatives of the oil and gas pipeline industry, from the electrical utility industry, from labor and farmer unions, from the Sierra Club-an organization which is interested in environmental protection-and this will be our last day of hearings on this bill.

We hope to go into markup next week.

Our first witness is the very able and distinguished Mr. Elmer Staats. He is well known to this subcommittee and this committee, having made many appearances before us.

We welcome you, Mr. Staats.

Mr. Staats is Comptroller General of the United States. He heads up the General Accounting Office, an arm of the Congress set up and maintained to be a watchdog for the Congress on expenditures in the executive branch.

I heard a most interesting story on the Smithsonian today, reflecting the objectivity of the GAO's analysis of how the Smithsonian has operated.

Mr. Staats has had a distinguished public career, having served the Federal Government for many years. He was Deputy Director of the Bureau of the Budget prior to being named Comptroller by President Lyndon B. Johnson.

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Mr. Staats' office has made a study of energy organization in the Federal Government, and we will be very pleased to hear your views. on this subject.

STATEMENT OF ELMER B. STAATS, COMPTROLLER GENERAL, U.S. GENERAL ACCOUNTING OFFICE; ACCOMPANIED BY MONTE E. CANFIELD, DIRECTOR, ENERGY AND MINERALS DIVISION; JAMES DUFFUS, ASSISTANT DIRECTOR, ENERGY AND MINERALS DIVISION; AND JOHN W. SPRAGUE, ASSOCIATE DIRECTOR

Mr. STAATS. Thank you, Mr. Chairman.

I will try to be brief. This is a very important subject we are dealing with here, and I appreciate your inviting us to be present.

The General Accounting Office has had a longstanding interest in reorganization of Federal energy activities, and I am pleased to be here to discuss energy reorganization legislation-specifically, H.R. 4263, the companion bill to S. 826, the administration's energy reorganization bill.

On March 24, 1977, we issued a report on energy policy decisionmaking, organization, and national energy goals pursuant to a request from Chairman Ribicoff and the ranking minority member of the Senate Committee on Governmental Affairs.

I believe the report would be of interest to this subcommittee and should be included in the record at this point.

Mr. BROOKS. Without objection, it will be made a part of the record [The report follows:]

NITED

REPORT TO THE CONGRESS

STATES

BY THE COMPTROLLER GENERAL
OF THE UNITED STATES

Energy Policy Decisionmaking,
Organization, And
National Energy Goals

An effective Federal energy structure is essen-
tial to the development of a cohesive national
energy policy. At present, the management
and control of Federal energy programs is
spread throughout a number of agencies with
varying charters and legislative mandates. By
consolidating energy functions, the Govern-
ment could deal more effectively with the
long-term and complex nature of the Nation's
energy problems.

A number of proposals have been made to
reorganize Federal energy activities, including
the administration's proposal for a Depart-
ment of Energy. This report discusses some of
the proposals and recommends that the
Congress enact legislation along the general
lines proposed by the administration. The
report discusses several issues which the
Congress should address in enacting such leg-
islation.

EMD-77-31

MARCH 24, 1977

This report identifies a number of gaps in the energy policy decisionmaking process which show the need for better coordination among agencies carrying out energy functions and for establishing a system of priorities among energy goals. In addition, the report discusses energy reorganization and several issues which the Congress should address in enacting legislation to reorganize the Federal energy structure.

Our work was done at the request of Senators Ribicoff and Percy as Chairman and ranking minority member of the Senate Committee on Government Operations (now the Senate Committee on Governmental Affairs). We made our review pursuant to the Budget and Accounting Act of 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.c. 67).

Copies of this report are being sent to Mr. James R. Schlesinger, Assistant to the President; the Director, Office of Management and Budget; the Administrators of the Federal Energy Administration and the Energy Research and Development Administration; the Secretary of the Interior; the Chairman, Federal Power Commission; the Chairman, Nuclear Regulatory Commission; the Chairman and ranking minority member, Senate Committee on Governmental Affairs; and the Chairman, House Committee on Government Operations.

Zemes B. Starta

Comptroller General
of the United States

COMPTROLLER GENERAL'S
REPORT TO THE CONGRESS

ENERGY POLICY DECISIONMAKING,
ORGANIZATION, AND NATIONAL

ENERGY GOALS

DIGEST

How does the Federal energy establishment--a
number of separate U.S. agencies--function?
What problems exist in the relationships of
these agencies with each other?
How is energy
policy presently made by the Government?
What is the current relationship between
energy decisions and national energy goals?

The primary Federal energy agencies are the
Federal Energy Administration, Energy Research
and Development Administration, Federal Power
Commission, and Department of the Interior.

In carrying out their separate missions, the
agencies do not always take actions or make
decisions that are compatible with overall
national energy goals. Moreover, it is
possible that various trade-offs and compro-
mises between and among individual energy
goals are not given full consideration.