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Accordingly, industry is to be expected to support development and demonstration of promising near-term technologies and to be responsible for their ultimate market or commercial deployment.

Finally, stimulated by Federal tax credits and rising energy prices, the Administration notes that the market for energy conservation and solar energy products is expanding rapidly. Deregulation of oil in accordance with the President's policy and increasing natural gas prices, permitted under the Natural Gas Policy Act of 1978, will raise the price of oil and gas toward true market value. Regulations which have held energy prices artificially low have prevented investments in conservation and renewable energy from achieving their true potential. As a consequence, the President believes it is now possible to shift the focus of the Department's conservation and renewable activities away from costly near-term development, demonstration and commercialization efforts and into longer-range research and development projects that are too risky for private firms to undertake.

DOE is reviewing the provisions of all existing statutes authorizing or directing DOE to undertake conservation and renewable energy activities. DOE will provide to the Congress any suggested revisions to existing legislation as soon as they are completed.

As requested by the Subcommittee, I have prepared responses, to

your questions which I will submit for the record.

I would now like to highlight the programs included in the

FY 1982 revised budget request.

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OFFICE OF BUILDINGS AND COMMUNITY SYSTEMS

The primary objective of the Buildings and Community Systems programs is to perform long-term, high risk (but potentially high payoff) generic research on technologies affecting the use of energy in buildings that supports development of the technology base necessary to increase the energy efficiency of the Nation's buildings. The research findings will be available for use by manufacturers, builders, architects and engineers to achieve further increases in the energy efficiency of buildings. Additionally,

continued support will be provided for updating the appliance test procedures used under the Federal Trade Commission (FTC) labeling program and for continued coordination of conservation efforts in Federal buildings and operations.

The FY 1982 request for Buildings and Community Systems is $31.1 million. The request reflects a concentration of the generic, long-term research which provides a technological base for building energy efficiency and which would not be undertaken by the private

sector.

The request for Building Systems is $17.9 million which will support long-term generic Building Energy Science research programs in ventilation and controls, envelope systems and materials, performance calculations and diagnostics, and pilot projects and case studies. These activities are directed toward advancing the technical understanding of energy phenomena in both new and existing residential and commercial buildings. focus on the energy efficiency of the entire building by examining the interaction of its component parts and energy systems.

They

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Substantial gains in improving the energy efficiency of buildings can be achieved if these interactions are understood.

The

buildings system subprogram conducts research that is not done in the private sector. Technical program areas and the specific research agendas selected reflect close cooperation with the major segments of the diverse building industry.

Building

Energy Science programs are looked upon by the private sector as the source for unbiased research and technical data on energy efficient buildings.

The Building Systems request will also support research on energy conversion and continued updating of existing appliance test procedures. The energy conversion activity will support technology base research on generic technical issues (for example, combustion and heat transfer) that can lead to improved energy efficiency in a variety of end-use products, such as advanced heating and refrigeration systems.

FEDERAL ENERGY MANAGEMENT PROGRAM

The purpose of the Federal Energy Management Program is to increase energy efficiency and thereby reduce energy consumption in Federal facilities and operations. The program office provides direction and coordination of the effort to get Federal agencies with non-energy missions to incorporate energy considerations into their planning and management functions and to improve the energy efficiency of their operations and facilities. To continue these activities, $1 million has been requested for the program for FY 1982.

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ENERGY FROM MUNICIPAL WASTE

This program focuses on research and development of

economically and environmentally sound options for energy

forms derived from wastes, and on replacement of the use of

virgin materials with recyclable materials derived from municipal

wastes.

In FY 1982, research and development will focus on completing unit improvements which have the potential to enhance efficiencies and economics. Special attention will be given to plan evaluation and the generation of engineering data. In future years, any further urban waste research and development of this type will be undertaken by the private sector. range, generic research on conservation that will provide a technology base for private sector efforts is continuing in the Energy Conversion and Utilization Technologies Program in the

Multi-Sector area.

Longer

TRANSPORTATION PROGRAMS

The primary objective of the transportation program is to support long-term, high-risk, but potentially high pay-off, research and development on promising conservation technologies that are unlikely to be undertaken by the private sector alone. For FY 1982, $38.3 million is requested for the transportation program. Vehicle Propulsion Technology Development accounts for $11 million. Key long term, high risk research areas have been identified in both the gas turbine and Stirling engine technologies and in areas related to improving efficiency in

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truck and bus systems. This research is fundamental to the success of eventual use of these types of engines in transportation.

The FY 1982 gas turbine program will focus on ceramics development, combustion, compressor and turbine aerodynamics and regenerator hot seals. Generic research and development will be carried out on Stirling engine technology items such as low-cost heat exchangers, advanced control systems, and ceramic heat exchanger components. Generic research projects will be initiated, including the investigation of ceramic materials for the heavy-duty truck propulsion system market.

The FY 1982 request includes $19.6 million for Electric and Hybrid Vehicle Research, Development, Testing and Evaluation. The program will concentrate on the most promising experimental battery candidates determined from laboratory and vehicle testing. Longer-term, high risk research and development of components and subsystems for electric vehicles will emphasize complete dc and ac propulsion subsystems and the related controllers. In the hybrid vehicle project, the fabrication of a hybrid research vehicle will be completed.

In the FY 1982 budget for the Transportation Systems Utilization Program $1 million is requested to publish and distribute 12 million copies of the Gas Mileage Guide for model year 1982. The Alternative Fuels Utilization program is budgeted at $5.4 million for FY 1982. Activities will be focused on the use of synthetic fuels. The effort will consist of exploratory investigation of potential problems and establishment of engine and