DEPARTMENT OF ENERGY AUTHORIZATIONS (FISCAL YEARS 1979 AND 1980) AND ENERGY EMERGENCY PREPAREDNESS TUESDAY, MARCH 6, 1979 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ENERGY AND POWER, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The subcommittee met at 9:30 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, Hon. John D. Dingell, chairman, presiding. Mr. DINGELL. The subcommittee will come to order. Today is the last day of the subcommittee's hearings on the Department of Energy's authorization for fiscal years 1979 and 1980. This hearing will examine the budget requests for the Energy Information Administration and certain environmental functions, including the management of surplus radioactive contaminated DOE facilities and the implementation of title I of the Uranium Mill Tailings Radiation Control Act of 1978. We will also hear testimony concerning the legislative provisions of H.R. 1004, which is nearly identical to the authorization bill reported by the full committee last year, and of the DOE bill for fiscal year 1980. More than a month has passed since the President submitted his budget to Congress and we have yet to receive the Department's authorization bill for fiscal year 1980. The DOE defense bill was released by OMB early in February but not the energy bill. We expect the Department's General Counsel to explain why it is being delayed and give us a firm date for its transmittal to Congress this week. The Chair does advise, if necessary, we will call the Office of Management and Budget to come up and explain this failure. The Chair also wishes to express concern about the cutback in the budget for cleaning up surplus radioactively contaminated facilities of the Department. Some of these facilities are located within the city limits of some communities. Others are within a few miles of populated areas. The budget has been reduced by over $5 million. The effect is to delay this program by 1 year or more, and I consider that to be unacceptable. I expect the Department's witness to explain the reasons for this reduction. The Chair will now recognize Lincoln E. Moses. Mr. Moses, we are pleased to welcome you. Please identify yourself fully for the record, and also identify your associates, and we will be most pleased to receive your statement. Mr. MOSES. Thank you. I am Lincoln E. Moses, the Administrator of the Energy Information Administration. Seated at the table next to me is Thomas Newkirk from the Office of the General Counsel. I have other members of my staff with me who may participate at some point in the questioning. Would it be satisfactory to introduce them then? Mr. DINGELL. Very well. Thank you, Mr. Moses. You may consider yourself recognized. Mr. MOSES. Thank you. STATEMENT OF LINCOLN E. MOSES, ADMINISTRATOR, ENERGY INFORMATION ADMINISTRATION, DEPARTMENT OF ENERGY, ACCOMPANIED BY CHARLES S. SMITH, ASSISTANT ADMINISTRATOR, ENERGY INFORMATION VALIDATION; C. ROGER GLASSEY, ASSISTANT ADMINISTRATOR, OFFICE OF APPLIED ANALYSIS; ALBERT H. LINDEN, JR., ASSISTANT ADMINISTRATOR, ENERGY DATA; AND THOMAS NEWKIRK, OFFICE OF GENERAL COUNSEL Mr. MOSES. I am pleased to be here today, Mr. Chairman, to testify on the fiscal year 1980 Department of Energy Authorization Act and the budget request for the Energy Information Administration. Before discussing EIA's specific programs and our request for funding for these programs in fiscal year 1980 I want to highlight EIA's expected accomplishments in 1979. In 1979, EIA will continue to operate and improve existing data systems and collect information to support implementation of the National Energy Act. The first results of the surveys on oil and gas information, industry financial reporting and energy consumption, will be published in preliminary reports. In addition, an interim energy emergency management information system will be implemented. While we will continue to make management improvements to further reduce respondent burden, implementation of the new major data systems and systems to support the new NEA will result in a new increase in respondent burden in 1979. An effort to classify and index energy information will be initiated based upon a system design completed in 1978. In 1979, EIA's Office of Applied Analysis will continue to provide analysis services on request, and will upgrade the quality of analysis capabilities and model documentation and portability. Two major efforts started in 1978 and scheduled for completion in 1979 are the forecasts for energy futures for volume III of the 1978 Annual Report and analytical support for the biennial National Energy Policy Plan. The reference forecasts for the National Energy Policy Plan will be taken from the 1978 EIA Annual Report to Congress for 1978 which will also contain alternative forecasts derived from EIA assumptions. In 1979, EIA's Office of Energy Information Validation will continue to review proposed new and revised data collection forms and assist the development of major new systems. There will be major validation studies of information systems related by subject areas, such as fuel substitutability. In addition, methodology development will begin for validating forecasting models and projections. In 1978, the task of consolidating and integrating the energy information related personnel and programs of the former Federal Energy Administration, Bureau of Mines, and the Federal Power Commission was well advanced and has been assisted by the establishment of administrative disciplines for program planning, project accountability, budgeting, and personnel management. In order to favor objectivity and credibility, the law has provided EIA with a considerable measure of independence. In the course of the last year, patterns of independence and objectivity have begun to take on a habitual character in the organization. Briefly, to promote objectivity and independence, our practice has conformed to two basic principles: One, energy policy and program initiatives are neither developed nor advocated by EIA; and two, competent outside critical review of EIA methods and publications is often resorted to, with an eye to objective and independent appraisal in problem areas. Last year's Annual Report to Congress stated that a large part of the EIA's work agenda for the upcoming year would be based upon the priority needs that were identified in the Professional Audit Review Team-PART-report of 1977. The PART was created by legislation to assess the activities of the EIA and to report its findings yearly to the Congress and to the President. The foregoing agenda for 1979 is consistent with the observations of the PART and the commitment of the Secretary of Energy to respond to those observations. The fiscal year 1980 budget request of $88.7 million and 810 fulltime permanent positions provides for a continuation of ongoing data collection and analysis activities. The modest increase of $9.2 million and 25 full-time permanent positions over the fiscal year 1979 appropriation and supplemental budget is requested to expand the validation effort and to implement portions of the National Energy Act. The data gathering, analysis, and validation activities of the EIA are organized in four major activities: One, energy applied analysis; two, collection, production, and dissemination; three, data validation; and four, data information services. The fiscal year 1980 request for Energy Applied Analysis is $13.9 million and 185 full-time positions. This is $0.2 million less than the revised request for fiscal year 1979, which includes a supplemental request for $1.5 million. This area is comprised of three programs: Energy analysis forecasting, energy economy analysis, and analysis access and development. The 1980 request will provide for the continuation of current levels of operation. In 1980, energy applied analysis will continue to develop and apply models and methodologies to analyze current and projected energy production, distribution, consumption, and prices. Current and projected relationships between energy related activities and the economy will also be analyzed. Energy Applied Analysis will also prepare regularly scheduled and special purpose forecasts to estimate the effects of current and alternative future energy policies, actions, and developments and will assure that these analyses, models, and methodologies are documented, reviewed, and updated as appropriate. The fiscal year 1980 request for collection, production, and dissemination is $47.1 million and 457 full-time permanent positions. This level of funding will provide for the continuation of current operations in fiscal year 1980 for these programs: The financial reporting system, the oil and gas information system, energy information services, mineral fuels data, electric utilities data, emerging energy sources, consumption data, and the energy emergency management information system. An increase is requested for petroleum and natural gas data to support the information requirements for the National Energy Act. The request for this program is an additional $3.1 million and 15 positions above the 1979 revised request, which includes a supplemental request of $9.2 million and 30 positions. The collection, production, and dissemination activity encompasses programs that provide accurate and up-to-date information on energy supply and production, energy demand and consumption, reserves of energy resources, and financial data on the energy industry to Congress, policymakers in the executive branch, and the public. The fiscal year 1980 request for Data Validation is $15.9 million and 76 full-time, permanent positions. This is an increase of $5 million and 10 positions over the revised level requested for fiscal year 1979-which includes a supplemental request of $4.1 million and 21 positions. The objective of this program is to evaluate the meaningfulness and accuracy of energy data and analyses and the processes used in data collection and analysis activities. The process of information validation constitutes an assessment of the treatment of energy information from measurement through publications. The fiscal year 1980 request will enable the validation program to reduce the backlog of systems and models to be validated. The fiscal year 1980 request for data information services is $11.8 million and 92 full-time permanent positions. This activity provides data support to the regulatory agencies, to the Office of Conservation and Solar Applications and to all other organizations in the Department of Energy which make data services requests of EIA. The 1980 request essentially provides for a continuation of the current level of operations in 1980 and provides full year funding for 25 additional positions added in 1979 to support the implementation of the National Energy Act. This concludes my overview of the Energy Information Administration and its proposed activities for fiscal year 1980. I believe that the level of support we are requesting for these programs will enable EIA to continue to develop and maintain a comprehensive and reliable base of energy information and analytical capability within the Department of Energy. And now, sir, I would be glad to answer any questions that may be put to me. Mr. DINGELL. Thank you very much, Mr. Moses. The Chair observes that you have also submitted a more lengthy statement which, without objection, will be inserted at this point in the record. Mr. MOSES. Thank you, sir. [Testimony resumes on p. 903.] [Mr. Moses' prepared statement follows:] STATEMENT OF LINCOLN E. MOSES ADMINISTRATOR, ENERGY INFORMATION ADMINISTRATION ON THE FY 1980 BUDGET AND AUTHORIZATION REQUEST Mr. Chairman, and members of the Committee, I am pleased to be here today to testify on the FY 1980 Department of Energy Authorization Act and the budget request for the Energy Information Administration (EIA). Before discussing EIA's specific programs and our request for funding for these programs in FY 1980, I want to highlight EIA's accomplishments in 1978 and expected accomplishments in 1979 in light of EIA's mission and goals. In fulfilling its legislative responsibilities, the EIA serves the needs of five different sets of customers in the energy area: legislators, regulators, program managers and analysts, executive and industrial decisionmakers, and the general public. The information needs of these five groups include: Broad descriptions of the U.S. energy situation; Detailed information about particular fuels, and Detailed information to enable regulatory Information about trends; Data concerning the competitive structure of the Analyses of probable impacts of proposed regulations; Analyses of probable consequences of various proposed policies. |