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1. Question: Given the public opposition to this proposal and the agency's apparent reversal of a longstanding position, will you, as the new Director of OSM, re-examine the issues in a new rulemaking and consider withdrawal of the proposal.

Answer: The Department sent a notice withdrawing this rulemaking to the Federal Register on July 18, 1989. If confirmed, I will certainly reconsider all aspects of this complex issue before making any decisions concerning additional rulemaking.

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2. Question: Absent from OSM's December 29 proposal is an option included in the agency's Environmental Impact Statement that the Section 522(e) prohibitions would not apply to underground mining. The agency further failed to explain the reasons underlying the deletion of this proposal. (a) Why did OSM delete the above option from the rulemaking? (b) Will OSM republish this rule with all of the options for addressing subsidence from underground mining, including the interpretation that SMCRA Section 522(e) prohibitions do not apply to subsidence from underground mining?

Answer: As I have noted, the Department has withdrawn the 1988 VER proposal which also included options on subsidence. If confirmed, I intend to review all the issues addressed in that rulemaking including the extent, if any, to which the prohibitions in SMCRA Section 522(e) apply to underground extraction.

APPENDIX III

Additional Material Submitted for the Record

NASEO National Association of State Energy Officials

Chairman Mitch Beaver

(Illinois)

Immediate Past Chairman

Charles R. Guinn

(New York)

Vice Chairman

Dr. Donald E. Milsten

(Maryland)

Treasurer Charles J. Clinton (District of Columbia)

Secretary Cherry L. Duckett (Arkansas)

Paul Burks (Georgia)

Mark Ginsberg (Arizona)

Charles R. Imbrecht (California)

Bob Jackson (Missouri)

Van Jamison (Montana)

Sharon M. Pollard (Massachusetts)

Carol Tombari (Texas)

Richard Watson (Washington)

Executive Director

Frank Bishop

Counsel Jeffrey C. Genzer

Duncan, Weinberg, Miller

& Pembroke

1615 M. Street, N.W. Suite 800

Washington, D. C. 20036 (202) 467-6370

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I am pleased to have the opportunity to submit the enclosed written testimony on behalf of the National Association of State Energy Officials in support of the nomination of J. Michael Davis of Colorado to serve as Assistant Secretary for Conservation and Renewable Energy of the United States Department of Energy. We strongly support his nomination and we hope confirmation will occur quickly.

If we can provide further information please do not hesitate to contact us.

cc: The Honorable James A. McClure

Ranking Minority Member

Committee on Energy and Natural
Resources

State Energy Directors

Judy Harrington

Director, Colorado Office

of Energy Conservation

Frank Bishop

Jeffrey Genzer

Sincerely,

Mitch Beave

Mitch Beaver
Chairman

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NASEO National Association of State Energy Officials

Chairman

Mitch Beaver (Illinois)

Immediate Past Chairman

Charles R. Guinn

(New York)

Vice Chairman

Dr. Donald E. Milsten (Maryland)

Treasurer

Charles J. Clinton

(District of Columbia)

Secretary

Cherry L. Duckett

(Arkansas)

Paul Burks

(Georgia)

Mark Ginsberg

(Arizona)

Charles R. Imbrecht

(California)

Bob Jackson (Missouri)

Van Jamison (Montana)

Sharon M. Pollard (Massachusetts)

Carol Tombari (Texas)

Richard Watson (Washington)

TESTIMONY

Submitted by

Frank M. Beaver

Chairman

National Association of State Energy Officials

before the

Committee on Energy and Natural Resources
United States Senate

in support of the nomination of

J. Michael Davis as

Assistant Secretary for Conservation and Renewable Energy
United States Department of Energy

July 18, 1989

Executive Director
Frank Bishop

Counsel Jeffrey C. Genzer

Duncan, Weinberg, Miller

& Pembroke

1615 M. Street, N.W. Suite 800

Washington, D.C. 20036 (202) 467-6370

Telephone 202-639-8749

613 G Street, NW, 5th Floor, Washington, DC. 20001

Chairman Johnston, Committee members, I am

pleased to have the opportunity to submit written testimony in support of the nomination of J. Michael Davis to serve as Assistant Secretary for Conservation and Renewable Energy of the United States Department of Energy.

I am testifying in my role as Chairman of the National Association of State Energy Officials (NASEO), which represents state energy officials in 49 states, territories and the District of Columbia. NASEO is affiliated with the National Governors' Association. NASEO is dedicated to enhancing our national energy security by advocating a balanced national energy policy, implementing effective energy programs and educating the American public on energy issues.

We are very pleased to have this opportunity to support the nomination of J. Michael Davis to serve as Assistant Secretary for Conservation and Renewable Energy. He would be the first Assistant Secretary to come to that job with experience in the energy efficiency and renewable energy business. He served for three years as a U.S. DOE Division Manager. Subsequently, he served as a Senior Manager with the Solar Energy Research Institute (SERI). After his government service Mr. Davis was Vice President of Sunbelt Energy Corporation, a solar thermal energy company. Beginning in 1986, he has been President of GlowCore Colorado, Inc., a high efficiency HVAC sales and installation concern. He also is a registered professional engineer and we are very pleased that he served on the Advisory Board of the Colorado Office of Energy Conservation, a NASEO member. Mr. Davis spent eight years in the United States Air Force as well.

The state energy offices operate three programs which fall under the authority of this Assistant Secretary: 1) the Institutional Conservation Program (ICP); 2) the State Energy Conservation Program (SECP); and 3) the Energy Extension Service (EES). We look forward to the opportunity to work with Mr. Davis to make these successful programs even more effective and also to improve the dissemination and technology transfer of successful research conducted through the R&D efforts administered by this division of DOE.

In summary, Mr. Davis is exceedingly wellqualified for this position. He is a further example of the increased attention the new Administration is placing upon this important division at the Department of Energy.

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