SPACE RESEARCH AND TECHNOLOGY

The missions of space research and technology have in recent years been focused heavily on the development of new space capabilities, most importantly the space shuttle. This administration intends to give increased emphasis to the use of existing capabilities for scientific and practical applications, in contrast to the development of major new capabilities beyond the shuttle, such as a large manned space station. The total outlays for these missions are expected to increase from $3.6 billion in 1978 to $3.8 billion in 1979. The 1979 budget maintains the current momentum in the shuttle development program, makes provision for early transition to the operational shuttle system, and recommends new initiatives in space science and applications.

Space flight.—These programs are carried out to enhance the Nation's capability to operate in space and to provide space transportation services to Government, commercial, and foreign users. Outlays for these programs are estimated to be $2.3 billion in 1979. In 1979, outlays of $1.4 billion are recommended for continued development and production of the space shuttle system. The space shuttle will meet our Nation's need for space transportation capabilities, will increase the flexibility and productivity of space missions, and will lower the total cost of space operations. The space shuttle, the first reusable space vehicle, offers unique advantages over current expendable launch vehicles. These include retrieval of payloads from orbit for reuse; service and repair of satellites in space; and operation of space laboratories, such as the European-built Spacelab, for scientific and practical purposes. One of the possible practical applications envisioned is the production of improved, high-purity materials utilizing the weightless, high-vacuum environment of space. The shuttle development program is now at its peak period of activity. The first shuttle vehicle has successfully completed a series of approach and landing tests. The first test flight in orbit is scheduled for 1979, with regular operations scheduled to begin in 1980. When fully operational, the shuttle transportation system will replace virtually all expendable launch vehicles currently used by the Department of Defense or by NASA for its own missions and for other Government, commercial, and international customers. In formulating the 1979 budget, the administration has reviewed the projected demands for use of the space shuttle and proposes the procurement of four operational shuttle orbiters to provide launch services from both the east and west coasts. The orbiter is the reusable part of the shuttle that returns with the crew to Earth. The decision to procure four operational shuttle orbiters, as compared with the five orbiters proposed in the 1978 budget, is expected to result in significant cost savings in future years. The procurement of any additional orbiter capacity can be considered in future years in the event that projected flight rates or the accidental loss of an orbiter warrant such action. A four-orbiter shuttle fleet should encourage early transition from expendable rocket boosters for civilian and military purposes and will meet expected launch traffic well into the 1980's.

Space science, applications, and technology.—The Federal Government supports fundamental studies and exploration of the solar system and the universe, demonstrations of practical applications of space-based systems, and development of space technology either to reduce the cost of operations in space or to make possible new applications of space technology. Total outlays for such programs are expected to increase from $1.0 billion in 1978 to $1.2 billion in 1979. The Government assumes responsibility for space science and exploration, as part of its overall support for basic research. Spacebased observations provide a unique vantage point for studies of the Earth's space environment, the Sun, the planets, and stars not possible from ground-based observatories because of the obscuring effects of the atmosphere. As part of such investigations the administration is proposing a new space mission to orbit the Sun that will, for the first time, study solar activity and radiation near the Sun's polar regions. Previous observations of the Sun and its radiation have focused on the region of the Sun that faces the Earth. The study of the Sun's polar regions should contribute to our basic understanding of the Sun's effect on the Earth's atmosphere and climate. The mission will involve two spacecraft, one funded by the United States and the other by the European Space Agency. This cooperative approach is consistent with administration efforts to seek international cost sharing and participation in expensive space science projects. The budget request also provides for continued development of several science projects approved in prior years. The space telescope will allow scientists to observe galaxies and other sources of radiation that are at far greater distances than those that can be observed from ground-based observatories. The telescope will be launched by the space shuttle in 1983. Work will also continue on the Jupiter orbiter and probe mission, the next step in the systematic exploration of the planets. Other projects such as operation of the Viking-Mars spacecraft will be extended to gather additional data. Development and demonstrations of practical applications of space technology are recommended in various areas to explore potential uses of space technology to meet national needs. As part of the administration's initiative in climate research, the 1979 budget proposes funds for an Earth radiation budget satellite system. The Earth's radiation budget is the amount of solar energy absorbed by the Earth in a given region minus the energy emitted back to space by that region. Knowledge of how the Earth's radiation budget varies by region and over time is considered important to understanding and ultimately to forecasting climate variations. The 1979 budget also proposes continued development of satellites to monitor the Earth's land surfaces and oceans. A major effort is continuing to investigate the potential benefits of using satellites to survey the Earth's resources on a recurring basis. An estimated $71 million will be spent in 1979 on the further development of the Landsat-D satellite, the fourth in a series of experimental Earth resources satellites. Landsat-D, scheduled for launch in 1981, is expected to enhance the experimental use of satellites in a variety of applications, such as forecasting agricultural crop production. This spacecraft will include a new instrument, the thematic mapper, with higher resolution and increased capabilities for detecting and monitoring Earth resources. It will also carry a multispectral scanner used on the current Landsat spacecraft; this will extend the continuity of Landsat data for foreign and domestic users.

Supporting space activities.—In 1979, outlays of $390 million are recommended to provide tracking and data relay support for NASA space science and applications flight missions.

ENERGY

National Needs Statement:

• Reduce dependence on foreign oil in the near term and minimize the potential effects of supply disruptions.

• Prepare the U.S. economy to withstand the effects of higher energy prices resulting from continuing growth in demand coupled with the declining availability of world oil supplies.

* Develop renewable and essentially inexhaustible sources of energy for sustained economic growth through the next century.

• Develop advanced nuclear power systems that will limit the potential for international proliferation of nuclear weapons.

• Protect the environment while achieving the Nation's energy goals.

* Assure that energy policies and programs are fair, equitable, and fiscally sound.

The days of abundant and cheap energy are drawing to a close. America faces new energy realities. Domestic reserves of oil and natural gas, the Nation's predominant energy sources since World War II, have been dwindling since 1970. Oil, natural gas, and other possible substitutes for oil and natural gas, are expected to become increasingly costly. In the United States, the potential for increased supplies is limited, and global production capacity will eventually be similarly limited. At the same time, demand for energy is increasing. This imbalance between rising demand and limited production capacity lies at the heart of the energy problem.

The transition from an age of abundant, cheap petroleum and natural gas to one of increasing scarcity will be made in stages under the administration's energy policies. Various conservation measures will reduce the demand for energy in general and for oil and natural gas in particular, while conversion measures will increase the use of more abundant, conventional energy resources. The development of a strategic petroleum reserve will help to protect the economy against the effects of possible disruptions of foreign oil supplies. Over time, the stock of capital goods, including buildings and cars, will have increased energy efficiency, reflecting the new realities of petroleum scarcity. Thus, the United States will be able to withstand better the effects of worldwide decreases in production capacity. Over the long run, the United States and the world will need renewable energy sources to maintain economic growth and to improve standards of living. The national energy plan, presented to the Congress last April, is designed to encourage energy conservation, to promote a shift to more plentiful and permanent energy supplies, to provide greater investment certainty, to encourage greater production in the United States, and to develop renewable energy resources. The plan also protects the Federal budget from unreasonable burdens, and gives balanced consideration to the concerns of both consumers and producers. The legislative initiatives that were submitted with the national energy plan would provide the pricing and tax incentives to promote conservation, greater production from existing domestic resources, and the conversion from the use of oil and natural gas to a greater use of more abundant fuels. The major proposals are: • A crude oil equalization tax on existing domestic production to raise the price of petroleum products to their replacement value. Expected tax revenues would be refunded to individuals on a per capita basis, either in the form of tax refunds or direct payments. • An industrial oil and natural gas consumption tax on certain industrial and utility use to accelerate the conversion to facilities that use coal and other nonpetroleum fuels and to stimulate greater conservation. Refunds of the tax would be available by making investments in equipment that uses nonpetroleum fuels. • A new oil and natural gas pricing policy that would encourage the development of new domestic supplies and eliminate the distinction between interstate and intrastate natural gas markets. • An automobile fuel-efficiency (“gas guzzler”) tax to encourage conservation with all revenues refunded as subsidies for the purchase of fuel-efficient vehicles. • A regulatory program to prohibit the use of new oil and natural gas burning equipment in certain industrial and utility applications. • Individual tax credits for insulating residences and installing solar energy equipment. • Business tax credits to promote investment in more energyefficient equipment or modifications of existing structures and equipment, cogeneration facilities (those that produce electricity and steam simultaneously), coal conversion, and solar energy equipment. • New or more stringent energy-efficiency standards for buildings and appliances. • Reform of utility rates to promote the more efficient use of electricity.