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DOE AUTHORIZATION FOR F.Y. 1982

(Part 2)

HEARINGS

BEFORE THE

OF THE

SUBCOMMITTEE ON
ENERGY CONSERVATION AND POWER,
4. & Conques. How

COMMITTEE ON
ENERGY AND COMMERCE,
HOUSE OF REPRESENTATIVES

NINETY-SEVENTH CONGRESS

FIRST SESSION

MARCH 3, 1981—NUCLEAR ENERGY
MARCH 4, 1981-ELECTRIC UTILITIES
MARCH 5, 1981—ADMINISTRATION ENERGY POLICIES
APRIL 1, 1981–RENEWABLE ENERGY
APRIL 2, 1981—-NUCLEAR ENERGY

Serial No. 97-9

Printed for the use of the
Committee on Energy and Commerce

C.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1981

81-102 O

K Fan E5526

.)? 8 la COMMITTEE ON ENERGY AND COMMERCE Pt. 2

JOHN D. DINGELL, Michigan, Chairman JAMES H. SCHEUER, New York

JAMES T. BROYHILL, North Carolina RICHARD L. OTTINGER, New York

CLARENCE J. BROWN, Ohio HENRY A. WAXMAN, California

JAMES M. COLLINS, Texas TIMOTHY E. WIRTH, Colorado

NORMAN F. LENT, New York PHILIP R. SHARP, Indiana

EDWARD R. MADIGAN, Illinois JAMES J. FLORIO, New Jersey

CARLOS J. MOORHEAD, California ANTHONY TOBY MOFFETT, Connecticut MATTHEW J. RINALDO, New Jersey JIM SANTINI, Nevada

MARC L. MARKS, Pennsylvania EDWARD J. MARKEY, Massachusetts TOM CORCORAN, Illinois THOMAS A. LUKEN, Ohio

GARY A. LEE, New York DOUG WALGREN, Pennsylvania

WILLIAM E. DANNEMEYER, California ALBERT GORE, JR., Tennessee

BOB WHITTAKER, Kansas BARBARA A. MIKULSKI, Maryland

THOMAS J. TAUKE, Iowa RONALD M. MOTTL, Ohio

DON RITTER, Pennsylvania PHIL GRAMM, Texas

HAROLD ROGERS, Kentucky AL SWIFT, Washington

CLEVE BENEDICT, West Virginia MICKEY LELAND, Texas

DAN COATS, Indiana
RICHARD C. SHELBY, Alabama

THOMAS J. BLILEY, JR., Virginia
CARDISS COLLINS, Illinois
MIKE SYNAR, Oklahoma
W. J. "BILLY" TAUZIN, Louisiana
RON WYDEN, Oregon
RALPH M. HALL, Texas

FRANK M. POTTER, Jr., Chief Counsel and Staff Director
SHARON E. Davis, Chief Clerk/Administrative Assistant

DONALD A. WATT, Printing Editor
RANDALL E. Davis, Minority Counsel

SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER

RICHARD L. OTTINGER Nev York. Chairman ANTHONY TOBY MOFFETT, Connecticut CARLOS J. MOORHEAD, California EDWARD J. MARKEY, Massachusetts MATTHEW J. RINALDO, New Jersey ALBERT GORE, JR., Tennessee

JAMES M. COLLINS, Texas PHIL GRAMM, Texas

TOM CORCORAN, Illinois AL SWIFT, Washington

BOB WHITTAKER, Kansas MICKEY LELAND, Texas

THOMAS J. TAUKE, Iowa RICHARD C. SHELBY, Alabama

DON RITTER, Pennsylvania MIKE SYNAR, Oklahoma

HAROLD ROGERS, Kentucky RON WYDEN, Oregon

CLEVE BENEDICT, West Virginia RALPH M. HALL, Texas

JAMES T. BROYHILL, North Carolina DOUG WALGREN, Pennsylvania

(Ex Officio)
CARDISS COLLINS, Illinois
JOHN D. DINGELL, Michigan
(Ex Officio)

W. MICHAEL MCCABE, Staff Director
MICHAEL JAMES WARD, Chief Counsel

David SCHOOLER, Counsel
MARSHALL E. WHITENTON, Minority Staff Associate

(ID)

CONTENTS

Hearings held on:

Page

March 3, 1981

825

March 4, 1981.

955

March 5, 1981.

1061

April 1, 1981

1147

April 2, 1981,

1281

Statement of:

Bauer, Douglas C., senior vice president, Edison Electric Institute.

1015

Clark, Robert W., president, Goodyear Aerospace Corp..

895

Conway, John T., president, American Nuclear Energy Council

826

Davis, Ed, vice president, American Nuclear Energy Council.....

826

DeGeorge, Frank, Acting Assistant Secretary, Conservation and Renew-

able Energy, Department of Energy ...

1150

Dillon, Dr. Thomas, Deputy Assistant Secretary for Nuclear Reactor Pro-

grams, Department of Energy...

1283

Eastland, Hiram, on behalf of the State of Mississippi.

1015, 1048

Edwards, Hon. James B., Secretary, Department of Energy

1064

Feldscher, John, Goodyear Aerospace Corp.....

895

Gates, Mahlon E., Acting Assistant Secretary for Nuclear Energy, De-

partment of Energy..

1283

Grandys, Dr. Alvin K., director, Governor's Office of Consumer Services,

State of Illinois ....

956, 994

Grant, Richard L., president, Boeing Engineering and Construction

Southeast, Inc....

895, 904

Hammond, Dr. Leigh H., commissioner, North Carolina Utilities Commis-

sion ....

956

Meyers, Sheldon, Deputy Assistant Secretary for Nuclear Waste Manage-

ment, Department of Energy

1283

Pyatt, Everett, Acting Director, Office of Alcohol Fuels, Department of

Energy

1150

Rachlin, Michael S., vice president, government relations, the Garrett

Corp

895, 943

Renhult, James F., assistant manager, the Garrett Corp

895

Russell, John J., chairman, customer relations, conservation, and energy

management, Executive Advisory Committee, Edison Electric Insti-

tute

1015, 1041

San Martin, Dr. Robert, Deputy Assistant Secretary for Solar Energy,

Department of Energy.

1150

Savitz, Dr. Mazine, Deputy Assistant Secretary for Conservation, Depart-

ment of Energy

1150

Voigt, William, Director of Uranium Resources and Enrichment, Depart-

ment of Energy

1283

Wallace, Larry J., chairman, Indiana Public Service Commission ........... 956, 974

Material submitted for the record by:

American Nuclear Energy Council, letter dated March 16, 1981, from

John T. Conway to Chairman Ottinger, enclosing additional material

requested for the record..

874

Energy Department:

Chart of 79-1-p expenditures.....

1350

Evaluation of State authority re the Atomic Energy Act

1355

Letter dated April 23, 1981, from Mahlon E. Gates to Chairman

Ottinger re the nuclear energy budget reduction

1389

Memorandum and attachments from Harry A. Jones, Acting Assist-

ant Secretary, to Secretary Edwards re financing the strategic
petroleum reserve...

1115

Page
Material submitted for the record by-Continued
Energy Department-Continued

Responses to subcommittee questions, submitted by Frank DeGeorge.. 1180
Three Mile Island research and development program

1378 Energy Conservation and Power Subcommittee, Committee on Energy

and Commerce: Staff memorandum re breakdown of DOE conservation
and renewable energy budgets...........

1344 McEwen, Hon. Bob, a Representative in Congress from the State of Ohio, statement.

893

DOE AUTHORIZATION FOR FISCAL YEAR 1982

NUCLEAR ENERGY

TUESDAY, MARCH 3, 1981

HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ENERGY CONSERVATION AND POWER, COMMITTEE ON ENERGY AND COMMERCE,

Washington, D.C. The subcommittee met, pursuant to notice, at 2 p.m., in room 2123, Rayburn House Office Building, Hon. Richard L. Ottinger (chairman) presiding.

Mr. OTTINGER. The subcommittee will come to order.

This afternoon the Subcommittee on Energy Conservation and Power continues its hearings on the impact of proposed budget changes on various programs within the Department of Energy. Today the subcommittee meets to receive testimony from public witnesses on the Department's nuclear energy programs.

Last week the subcommittee received testimony concerning the new administration's proposal to eliminate or substantially reduce the budget of numerous programs, such as conservation and alcohol fuels, which offer near-term benefits.

The subject of today's hearing is in marked contrast with those prior hearings in that there is both some good news and some bad news. The good news is that we are finally reviewing an administration energy program which reportedly will not be seriously cut, and the bad news, at least from my standpoint, is the nuclear program.

It is completely beyond my comprehension why, with electricity consuming only 9.1 percent of our total oil consumption, we should be spending more than 50 percent of the revised civilian energy budget on nuclear energy for electricity production, to say nothing of the $4.5 billion spent on the military side of DOE's nuclear budget.

It also raises the question of whether there isn't some lack of confidence on behalf of the industry, and the ability of nuclear energy to survive in the marketplace if we are, indeed, going to deregulate and take away subsidies from all other forms of energy, and increase subsidies for nuclear energy.

I understand that some people feel, nevertheless, that in the past few years the nuclear program has operated under severe budget constraints and has not grown in proportion to other energy programs. As a result some nuclear programs, such as the new enrichment facility, are in serious jeopardy.

However, increases in the funding for nonnuclear alternatives represented a commitment on the part of the Congress to develop a balanced energy policy which provided both near-term and long

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