Page images
PDF
EPUB

Mr. MYERS. That is roughly $1 million.

If you had $1 million to spend entirely on your own, would you spend it in this way?

Mr. O'LEARY. I want to tell you my function with regard to the FERC budget. I am a conduit of information. This is their budget. It is the five-member commission's choice of the requests they wish to make. They will be before you, I believe, within the next few days and

Mr. MYERS. But as Deputy Secretary you make requests for budgets. If

you were limited in your budget, and you were going to lose $1 million, where would you first take it out? Would you take it out of the program?

Mr. O'LEARY. It would really depend upon where I was going to lose

can answer.

the money.

Mr. MYERS. I guess that is not a fair question. That is for us to decide.

Mr. McDONALD. Mr. O'Leary, I would just like to add that PURPA required the commission to establish

Mr. MYERS. I said, absent that requirement. You are not required to implement PURPA if you don't have any money.

I might ask one more question.

Who are some of the people that you are going to be paying to intervene?

Do you have typical groups?
Mr. McDONALD. No, sir.
Mr. MYERS. Will you just pay anybody who comes in and applies?

Mr. McDonald. We are not quite sure of that. Chairman Curtis is in the process of establishing some guidelines and ground rules on this and to see just how this is to be handled. That is why the request was for only $200,000, because we felt that in 1979 there was a low probability that

any

of this would occur. In 1980 we felt that time would also be needed to get the guidelines, and that is why the request was at $750 thousand.

Mr. MYERS. I think you are going to be surprised if you start paying people to come and testify. You are going to have them stand in line.

Mrs. Boggs. Mr. McDonald, would you identify yourself for the record, please?

Mr. McDonald. My name is William McDonald, the Executive Director at the Federal Energy Regulatory Commission.

GAS PRODUCER AND PIPELINE CONTRACTS

Mrs. Boggs. Mr. Secretary, Secretary Schlesinger has accused the Federal Energy Regulatory Commission of undermining the recent landmark natural gas legislation by altering the use of two controversial clauses in contracts between gas producers and pipelines.

In a letter of February 23 to Commissioner Curtis, he said that "Congress had expected the typical area rate clauses in their producer contracts would entitle them to collect maximum prices through the use of area rate clauses."

Continuing to quote the Secretary: "The Congress unquestionably intended to replace often changing commission-determined prices with statutorily mandated prices."

Continuing to quote: "To suggest now that these mandated prices will not apply to the only means of securing price increases under

existing contract undermines the objective of certainty inherent in the Act.”

Would you like to comment on that?

Mr. O'LEARY. I think the Secretary's comment speaks for itself. You understand that the reason that I described myself as a conduit here is that we do not exercise supervision over the Commission in the areas in which it has its own statutory charter. This is one of those areas. My understanding is that, in response to this letter, the Commission is reconsidering its stand upon this matter.

And am I right in believing that they made some public statement to the extent that they accepted the Secretary's view?

Mr. McDONALD. Yes. Mr. ()'LEARY. I think that there is some progress on this, Madam Chairman.

Mrs. Boggs. Thank you very much. We will question FERC a little more in detail.

Mr. Secretary, Mr. Jenrette was unable to be here today, but has a question he would like answered for the record.

[The question and answer follow:]

GASOLINE RATIONING

Question. Could you clarify for the record the status of rental car agencies under your proposed standby conservation plans on weekend gasoline sale restrictions and gasoline rationing.

If weekend gas sales restrictions are imposed under Standby Plan No. 1, would the operations of gasoline wholesalers in any way be affected? Would they still be permitted to sell motor fuels to commercial customers such as rental agencies? Would a rental agency be permitted to transfer gasoline so obtained to its own customers? Would the vehicles operated by a rental agency fall within any of the nine categories of vehicles which, under Section 3 of the Plan, are exempted from the weekend sales restrictions ? What about Categories B and C, in particular?

Similarly, if the gasoline rationing plan were imposed, would a rental car agency be able to obtain gasoline from its wholesaler and fuel the cars rented? Would it be able to transfer fuel to its customers ?

Would a rental car agency be able to obtain ration coupons on the basis of the number of valid registrations it possessed, the same as private individuals? Would it be able to transfer these to its customers ?

Answer. Gasoline wholesalers would be permitted to sell motor fuels to commercial customers such as rental agencies. However, our tentative view is that a rental agency would not be permitted to transfer gasoline to its customers during the period covered by the distribution restrictions. Vehicles operated by a rental agency would not be exempted from the restrictions under Section 3 of the Plan.

Under rationing, a rental car agency would receive gasoline from its established sources of supply and could transfer this fuel to its customers. A rental car agency would obtain ration allotments for each properly registered motor vehicle owned and could transfer these rights to its customers. Mrs. Boggs. Thank you very much, Mr. Secretary. I thank all of you. Mr. O'LEARY. It has been a pleasure. Mrs. Boggs. We will take about a 5-minute recess. [Recess.]

INDEX

Page
Arms Control and Disarmament Agency..

396
Board for International Broadcasting-...

404
Department of Commerce.-

270
Economic Development Administration.

301
General Administration.--.

270
National Oceanic and Atmospheric Administration---

350
Coastal Zone Management--

331
Fishermen's Contingency Fund---

335
Fishing Vessel and Gear Damage Compensation Fund--

334
National Telecommunications and Information Administration..

336
Department of Energy....

503
Administrative improvements.

620
Backlog reduction -

620
Budget increase, percentage of..

610
Closed plants, remedies at..

511
Computer services, additional_

589
Consolidation, delays in.

613
Cost increases--

602
Earthquake on nuclear site, effect on.

508
Earthquake, probability of_.

507
Energy audits---

599
Energy conservation---

589
Federal Energy Regulatory Commission -

608
Request in object class.

619
Federal pay raises---

603
Gas producer and pipeline contracts..

622
Gas stations closings_-

506
Gasoline rationing-

623
General Services Administration, increase of the

611
In-house energy reduction.-

611
Inflation increase_

611
Intervenor funding-

621
Management and support activities_

599, 602
Market development and training-

587
NASA, energy-saving device from..

590
National Energy Act, implementation of the.

616
Natural Gas Policy Act--

614
Addititonal burden of_

616
Nuclear powerplants, closure of_

503
Nuclear waste disposal.-

506
Office of Public Participation --

609
Oil consumption, impact of closure on.

504
Oil pipeline, cancellation of...

505, 513
Oil to gas conversions---

505
Plant closure, alternatives to--

512
Plutonium and Waste Treatment facility at Rocky Flats---

605
Policy analysis and systems studies_

602
Positions

618
Preparation of supplemental..

610
Salaries

618
State regulatory agencies_

615
Statement by John F. O'Leary, Deputy Secretary, Department of
Energy

514
Steamplant improvements_-

608
Supplemental funds, availability of__

586
Weapons testing--

605
(i)

Water Resources Council..

459
Authorizing legislation..

494
Granty program----

492
Personnel, additional

493
Planning manual..

500
Statement by Leo M. Eisel, Director.

484
Upper Mississippi River master plan---

493. 498
Department of Justice....

245
Fees and expenses of witnesses.

257
U.S. attorneys..

245
Department of State...

1
Contributions for international peacekeeping activities.

119
Contributions to international organizations.

64
International Fisheries Commissions.-

142
Missions to international organizations.-

136
Payment to the Foreign Service Retirement and Disability Fund..

63
Reprograming of resources for unofficial relations with the people on
Taiwan

172
Salaries and expenses.

63
Salaries and expenses-Reprograming proposal to close 13 consulates.- 150
International Communication Agency...

410

[blocks in formation]
« PreviousContinue »