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HOUSE BUDGET RESOLUTION TARGETS CLEAN ENERGY



  SCIENCE COMMITTEE FAILS TO TAKE UP ENERGY AUTHORIZATION DUE TO
  RESISTANCE FROM SEVERAL REPUBLICAN MEMBERS TO DEEP CUTS
  
  IN CELEBRATION OF EARTH DAY, BOB WALKER CRAFTS DRAFT HOUSE
  BUDGET RESOLUTION CONTAINING HUGE CUTS FOR RENEWABLE ENERGY,
  EFFICIENCY, AND FOSSIL PROGRAMS -- NUCLEAR POWER R&D UNTOUCHED
  
  On Wednesday, the House Science Committee marked up an omnibus
  authorization bill that was supposed to contain funding for the
  Department of Energy, Environmental Protection Agency and the
  National Oceanic and Atmospheric Administration.  When members
  arrived at the markup, they discovered that the energy portion
  was missing from the bill.  Apparently, Chairman Bob Walker (R-
  PA) was unable to satisfy the concerns of several Republican
  committee members who had expressed opposition to the proposed
  deep cuts to renewable energy and energy efficiency programs. 
  These members reportedly included Matt Salmon (R-AZ), Zach Wamp
  (R-TN), Roscoe Bartlett (R-MD), Mark Foley (R-FL) and Vern
  Ehlers (R-MI).  In an effort to force a vote on the issue,
  Democrats offered the President's budget request for the
  Department of Energy as an amendment to Walker's bill.  This
  amendment failed on a party-line vote.
  
  After much criticism from Committee members, Walker announced
  that he would have the Energy & Environment Subcommittee do an
  authorization bill.  But when subcommittee Chair Dana
  Rohrabacher (R-CA) attempted to schedule a markup, Walker balked
  and insisted that additional hearings be conducted before a bill
  could be considered and suggested that the subcommittee have a
  bill finished sometime in July, well after the appropriators
  have made critical decisions on energy programs and effectively
  rendering such an effort irrelevant.  Rohrabacher will hold
  hearings on the energy budget next Wednesday.
  
  Meanwhile, as Vice-Chair of the House Budget Committee, Walker
  has been busy drafting the energy section of the Fiscal Year
  1997 Budget Resolution.  The Budget resolution outlines
  allowable spending on broad program areas, but cannot determine
  individual program spending levels.  Even so, the resolution
  often includes recommendations for the authorizers and
  appropriators. 
  
  The draft bill, obtained by Public Citizen, cites an overall
  goal of terminating the Department of Energy and proposes energy
  R&D reductions of $652 million over the next six years, a
  decrease of 21% from 1996 levels.  Specifically, the bill calls
  for phasing out energy efficiency programs, fossil energy R&D
  and the clean coal technology program.  Other program areas
  identified for cuts include renewable energy, global warming
  activities, environmental restoration and waste management,
  laboratory technology transfer and DOE's "education program." 
  Fusion energy would be reduced to $225 million annually. 
  Nuclear fission programs are not mentioned in the document.
  
  The Budget Committee will markup a resolution during the week of
  April 29 and floor action is expected the following week.
  
  CONTACT MEMBERS OF THE HOUSE BUDGET COMMITTEE FROM YOUR
  STATE/DISTRICT AND URGE THEM TO MODIFY THE RESOLUTION TO INCLUDE
  SUPPORT FOR RENEWABLE ENERGY AND EFFICIENCY TECHNOLOGIES AND
  CUTS TO NUCLEAR ENERGY R&D.
  
  THE FOLLOWING MEMBERS SIT ON THE BUDGET COMMITTEE:
  Robert S. Walker (R-PA)*      Martin Olav Sabo (DFL-MN)**
  Glen Browder (D-AL)           John Shadegg (R-AZ)                
  Jim Kolbe (R-AZ)              Wally Herger (R-CA)                
  Lynn Woolsey (D-CA)           George P. Radanovich (R-CA)        
  Lucille Roybal-Allard (D-CA)  Wayne Allard (R-CO)                
  Christopher Shays (R-CT)      Dan Miller (R-FL)                  
  Carrie P. Meek (D-FL)         Harry Johnston (D-FL)              
  Patsy T. Mink (D-HI)          Jim Nussle (R-IA)                  
  Jerry F. Costello (D-IL)      Sam Brownback (R-KS)               
  Jim Bunning (R-KY)            John W. Olver (D-MA)               
  Peter Hoekstra (R-MI)         Nick Smith (R-MI)                  
  Lynn N. Rivers (D-MI)         Mike Parker (R-MS)                 
  Sue Myrick (R-NC)             Earl Pomeroy (D-ND)                
  Charles F. Bass (R-NH)        Bob Franks (R-NJ)                  
  Rick A. Lazio (R-NY)          Susan Molinari (R-NY)              
  Louise M. Slaughter (D-NY)    David L. Hobson (R-OH)             
  Martin R. Hoke (R-OH)         John R. Kasich (R-OH)              
  Steve Largent (R-OK)          William J. Coyne (D-PA)            
  Bob Inglis (R-SC)             Lloyd Doggett (D-TX)               
  Charles W. Stenholm (D-TX)    Lamar Smith (R-TX)                 
  Bill Orton (D-UT)             Alan B. Mollohan (D-WV)            
  
  *Chairman      **Ranking Democrat
  
  CONGRESSIONAL SWITCHBOARD -- (202)225-3121
  
  Contact Matt Freedman at Public Citizen (202-546-4996) for more
  information.
  -----------------------------------------------------------
  DRAFT BUDGET RESOLUTION SUMMARY
  Walker sets up the following six point test for guiding the
  funding of energy R&D:
  
       (1) "Federal R&D efforts should be focused on long-term,
       non-commercial R&D, with potential for great scientific
       discovery and the creation of new knowledge, leaving
       economic feasibility and commercialization to the
       marketplace."
  
       (2) "Federal funding of R&D on specific processes and
       technologies should not be carried out beyond demonstration
       of technical feasibility.  Significant additional private
       investment should be required for economic feasibility,
       commercial development and demonstration, and production
       and marketing."
  
       (3) "Revolutionary ideas and pioneering capabilities that
       make possible the impossible - that which has never been
       done before - should be pursued within controlled,
       performance-based levels of funding."
  
       (4) "The Federal Government should avoid funding research
       in areas that are receiving - or should be reasonably
       expected to obtain - funding from the private sector.  This
       principle applies to evolutionary advances or incremental
       improvements."
  
       (5) "Government-owned laboratories should confine their in-
       house research to areas in which their technical expertise
       and facilities have no peer and should contract out other
       research to industry, private research foundations, and
       universities."
  
       (6) "All R&D programs should be relevant and tightly
       focused to the agency's constitutional mission; those that
       are not should be terminated."
  
  As examples of programs that pass this test, Walker cites "the
  human genome project, an expanding hydrogen energy basic
  research program, and basic energy sciences research.  Programs
  that fail the test include fossil energy, energy efficiency and
  the clean coal technology program.  The resolution also states
  that "when specifically applied to the Department of Energy,
  these guidelines suggest further reductions in programs that, in
  turn, make much of the existing bureaucracy unnecessary and
  suggest its elimination."
  
  In support of its call for eliminating DOE, the resolution
  asserts that the agency was "supposedly created to deal with the
  energy crisis that the country experienced in the 1970's with
  gasoline lines and natural gas shortages" but that "the 'crisis'
  was the direct product of federally imposed wage and price
  controls...in other words, the Department of Energy, a
  government solution, was created to 'fix' a government-generated
  problem.  Gasoline lines ended soon after the controls were
  dismantled in 1981."  Disputing DOE's role in promoting energy
  efficiency, the resolution states that "in the 1980's, when the
  Reagan administration was 'neglecting' energy conservation,
  market-based energy conservation actually worked: As the economy
  grew by one-third, energy use stayed flat.  Meanwhile the
  Department of Energy spent more than $55 billion in constant
  dollars for energy research alone".
  
  Selected quotes for program areas [with comments in brackets]
  are listed below.
  
  ENERGY SUPPLY R&D [cut by $652 million, or 21%, by 2002]
  "This proposal reduces near-term technology subsidies in the
  Department of Energy for energy supply research and development
  in the areas of solar and renewable energy, global warming,
  environmental restoration and waste management, laboratory
  technology transfer, and the Department's education program. 
  The Budget Resolution assumes that the fusion program can be
  sustained at a $225 million annual level."
  
  [Other Energy Supply R&D programs not targeted for cuts in the
  resolution include: nuclear energy, biological and environmental
  research, basic energy sciences and university and science
  education.  In order to reach the target level for this
  category, renewables and environmental restoration programs
  would likely be virtually eliminated.]
  
  FOSSIL ENERGY R&D [cut by $416 million, or 95%, by 2002]
  "The Department of Energy has spent billions of dollars on
  research and development since the oil crises in 1973 triggered
  this activity.  Returns on this investment have not been cost-
  effective, particularly for applied R&D, which industry has
  ample incentive to undertake.  Some of this activity is simple
  corporate welfare for the oil, gas and utility industries.  Much
  of it duplicates what industry is already doing.  As the
  Congressional Budget Office notes, some has gone to fund
  technologies in which the market has no interest -- for example,
  hundreds of millions of dollars invested in coal-powered
  magnetohydrodynamics -- without any subsequent interest in the
  product the investment produced."
  
  ENERGY EFFICIENCY [cut by $416 million, or 100%, by 2002]
  "Energy conservation in the United States has been a clear
  success.  In the 1980's, for example, the economy grew a third
  while energy use remained flat due to market-driven energy
  conservation.  Government spending on energy conservation, on
  the other hand, has been less successful.  Business has
  incentives to market, and customers to buy, conservation
  technologies that work well.  DOE is left to fund less reliable
  and less promising technologies.  According to the Congressional
  Budget Office, DOE may:
       be crowding out private-sector firms or, alternatively,
       conducting R&D that those private sectors are likely to
       ignore - a common fate of the technologies generated within
       DOE's national laboratories."
  
  "No funding is provided for any new energy efficiency
  standards."
  
  [Bob Walker led the charge last year to gut DOE's appliance
  efficiency standards program and will likely attempt to force a
  rider on the Interior Appropriation bill to prohibit the
  issuance of any new standards.]
  
  CLEAN COAL TECHNOLOGY PROGRAM
  [cut by $157 million, or terminated, by 2002]
  "The Clean Coal Technology Program has been overtaken by changes
  in the law and incentives in the marketplace.  The program was
  created in the mid-1980's to help private industry develop
  commercial technologies to burn coal in environmentally sound
  ways.  Since that time, enactment of the Clean Air Act
  Amendments of 1990 and the Energy Policy Act of 1992 have given
  utilities and large industrial coal users clear economic motives
  for selecting lowest-cost options for reducing emissions from
  among current practices and new technologies.  Both the
  President and the Budget Committee have previously called for
  the termination of this program.
  
  [No new projects would be supported by this program and existing
  contracts that are in default by private sector partners would
  be terminated.]
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