Background and goals of the Federal nonnuclear research and development effort

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Background and goals of the Federal nonnuclear research and development effort
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Kirkpatrick, Patti
Downing, Walter ( jt. auth )
United States -- Congress. -- Senate. -- Committee on Interior and Insular Affairs
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Table of Contents
    Front Cover
        Page i
        Page ii
    Memorandum of the chairman
        Page iii
        Page iv
    Table of Contents
        Page v
        Page vi
        Page 1
        Page 2
    I. Introduction
        Page 3
        Page 4
        Page 5
        Page 6
    II. The federal nonnuclear research and development act
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
    III. The energy reorganization act
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
    IV. The mandate for the federal nonnuclear R. & D. effort
        Page 19
        Page 20
        Page 21
        Page 22
    Appendix I. The energy reorganization act of 1974 (Public law 93-438)
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
    Appendix II. The federal nonnuclear energy research and development act of 1974 (Public law 93-577)
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
        Page 65
        Page 66
    Appendix III. Summary of ERDA's long-range plan
        Page 67
        Page 68
        Page 69
        Page 70
        Page 71
        Page 72
        Page 73
        Page 74
        Page 75
        Page 76
        Page 77
        Page 78
Full Text



94th Congress C
2d SesionCOMMITTEE PRINT
2d Sessions









BACKGROUND AND GOALS'...7"

OF THE

FEDERAL NONNUCLEAR RESEARCH AND

DEVELOPMENT EFFORT






PRINTED AT THE REQUEST OF


HENRY M. JACKSON,


Chairman


COMMITTEE ON INTERIOR AND


INSULAR AFFAIRS

UNITED STATES SENATE


JULY 1976





Printed for the use of the
Committee on Interior and Insular Affairs


U.S. GOVERNMENT PRINTING OFFICE


WASHINGTON : 1976


74-1100O
















COMMITTEE ON INTERIOR AND INSULAR AFFAIRS
HENRY M. JACKSON, Washington, Chairman


FRANK CHURCH, Idaho
LEE METCALF, Montana
J. BENNETT JOHNSTON, Louisiana
JAMES ABOUREZK, South Dakota
FLOYD K. HASKELL, Colorado
JOHN GLENN, Ohio
RICHARD STONE, Florida
DALE BUMPERS, Arkansas


PAUL J. FANNIN, Arizona
CLIFFORD P. HANSEN, Wyoming
MARK 0. HATFIELD, Oregon
JAMES A. McCLURE, Idaho
DEWEY F. BARTLETT, Oklahoma


GRENVILLE GARSIDE, $pe ial Counsel and Staff Director
DANIEL A. DREYFUS, Deputy Staff Director for Legislation
WILLIAM J. VAN NESS, Chief Counsel
D. MICHAEL HARVEY, Deputy Chief Counsel
OWEN J. MALONE, senior Counsel
W. 0. (FRED) CRAFT, Jr., Minority Counsel


(II)












MEMORANDUM OF THE CHAIRMAN


To Members of the Senate Committee on Interior aml Insular Affairs:
Beginning before the initiation of the National Fuels and Energy
Policy Study in May of 1971, and continuing through the current
budget authorization and oversight activities of the Subcommittee on
Energy Research and Water Resources, this committee has been in-
volved in a comprehensive review and redirection of the Federal role
in nonnuclear energy research, development, and demonstration.
Prior to the energy crisis, Federal R. & D. in the energy field, with
the exception of the nuclear power program, was quite limited. The
incentives of the marketplace and the efforts of the energy industries
had provided us with energy in all of the forms necessary to serve a
technological society with convenience and abundance.
When for a variety of reasons the principal modern energy source,
petroleum, became an unreliable and costly resource, however, we found
that we were unprepared with modern alternatives. If fact, we did
not even have the scientific, engineering and economic information to
evaluate the dimensions of our crisis. The energy industries simply
had not had the incentives or the responsibility to explore more diffi-
cult and costly sources and technologies while petroleum was readily
available and cheap.
Between the beginning of 1973 and the present, the United States
has embarked upon a massive, federally sponsored energy research and
development effort. Organizationally and financially, it promises to be
larger and more complex than was the space program. Its successes
and failures may well dictate the shape of our future society and our
lifestyles for the next century.
There has been a high degree of political consensus upon the need
for the Federal energy R. & D. effort. The Executive and the Con-
gress have both provided concepts and support. As in any new un-
dertaking, however, the shape of the program is still evolving.
As the committee begins to be involved in the detail and progress of
individual R. & D. programs and projects, it may be useful to review
the broad goals and objectives of Congress in authorizing the effort.
As is often the case in major policy decisions, the intent of Congress
was often conveyed in general statements, sometimes it is implicit
rather explicit in the language of the statutes. A clear and useful di-
rection is evident, however, and it warrants reemphasis.
Between January and March of 1976, the committee cooperated with
the Principia College, Elsah, Illinois in an informal internship ar-
ran(ement. Ms. Patti Kirkpatrick and Mr. Walter Downing, who are
undergraduate students, participating in the Washington Field Pro-
(III)






IV

gram of the College, were requested to prepare a paper on the origins
of the Federal nonnuclear R. & D. program with emphasis upon the
goals as indicated in the legislative history. This report is the product
of their work.
I have ordered the report to be printed to make it available to the
members of the committee, the Congress at large, and others who are
interested in the origins of the Federal energy research and develop-
ment effort.
HENRY M. JACKSON, Uharman.















CONTENTS


Page
Memorandum of the Chairman---------------------------------------
I. Introduction----------------------------------------------------3
II. The Federal Nonnuclear Research and Development Act------------- -7
III. The Energy Reorganization Act----------------------------------13
VI. The Mandate for the Federal Nonnuclear R. & D. Effort -------------19

APPENDIXES
I. The Energy Reorganization Act of 1974 (Public Law 93-438) ---------25
II. The Federal Nonnuclear Energy Research and Development Act of
1974 (Public Law 93-577)--------------------------------------49
III. Summary of ERDA's Long-Range Plan_-------------------------- 69




















Digitized by the Internet Archive
in 2013














http://archive.org/details/backglso00unit






















BACKGROUND AND GOALS
NUCLEAR RESEARCH AND


OF THE FEDERAL NON-
DEVELOPMENT EFFORT


Prepared by Patti Kirkpatrick and Walter Downing
Principia College, Elsah, Illinois

at the Request of

Henry M. Jackson, Chairn.an,
Committee on Interior and Insular Affairs,
United States Senate,
July 1976











BACKGROUND AND GOALS OF THE FEDERAL NONNUCLEAR
RESEARCH AND DEVELOPMENT EFFORT
I. INTRODUCTION
In the beginning of 1973, few Americans were concerned about, or
even aware of, our failing supply of energy. By the end of the year,
however, every American's life had been affected by it. As oil and
gas prices shot up, thermostats in homes and offices were turned down;
motorists who were used to speeding along at 70 mph were driving at
55 and the lines at gas stations were long. People speculated as to
whether there would be enough oil to heat their homes for the winter;
commercial airlines sharply reduced their number of flights. To many,
the energy crisis represented a very simple problem: the demand was
up and the supply was limited. And while the U.S. represents only 6
percent of the total world population, in 1972 it devoured one-third of
the globe's energy production.
The October 1973, oil export embargo by Arab nations finally forced
Americans to realize that there is a desperate need to develop domestic
energy sources, and, at the same time cut down their voracious energy
appetite. The United States was reaching the end of its dependence
on cheap fossil fuels reserves and there was little hope of power from
other sources for the next 15 years. After 1985, experts argued, tech-
nological advances would supply the nation with more than enough
energy from nuclear powerplants.
"Our growing demands have bumped up against the limits of avail-
able supply," stated President Nixon on November 7, "and until we
provide new sources of energy for tomorrow, we must be prepared to
tighten our belts today."
It became apparent to all that a massive research and development
effort was necessary to deal with the Nation's fuel problems and, faced
with the Arab oil export embargo, achieve energy self-sufficiency.
Congress had been interested in energy research and development
since at least 1943. Enactment of the Synthetic Liquid Fuel Act in
1944, established an 8-year program for the construction and operation
of demonstration plants to produce synthetic fuels from a variety of
energy sources in order to conserve and increase the oil resources in
the United States. More recently, on February 4, 1971, Senator Ran-
dolph introduced Senate Resolution 45 which authorized the Senate
to make a study of national fuel and energy policy. Upon enactment
and pursuant to the resolution, the Senate Committee on Interior and
Insular Affairs conducted numerous hearings related to energy re-
search and development needs. During these years, a. number of Senate
resolutions and bills were introduced relating to specific and particular
research needs, but no comprehensive energy R. & D. program resulted.
The energy situation, in the meantime, had reached the critical
stage. By the summer of 1970, it was becoming increasingly apparent
to involved policymakers that the abundant supply of low-cost energy
(8)


74-110 0- 76 2







that had served this country's development would no longer be avail-
able. New discoveries of oil and gas reserves were not keeping pace
with production, and consumption was outstripping supply. With 6
percent of the world's population, the United States was consuming
almost a third of all the energy used in the world.
As this demand for more and more energy continued, so did the
Nation's dependence on foreign oil. Oil imports in 1970 supplied 23
percent of the national consumption and approximately 45 percent of
the large East Coast market consumption. The experience in 1970,
with the increased costs and reduced availability of overseas foreign
oil brought home sharply the risks involved in a dependence on
imports.
This inability to meet the Nation's energy demands, however, was
not caused by a lack of domestic energy resources. On the contrary,
etimates at the time showed that domestic supplies of energy were
capable of meeting all the country's requirements for the forseeable
future. Nor did the problem stem from a lack of technology concern-
ig the production of new energy sources. In many cases, the basic
scientific theory and laboratory experimentation to convert the N"-
tion's domestic fuels into usable forms of energy existed, but the
technologies which would have made these domestic energy resources
commercially useful within acceptable economic and environmental
limits had not been developed.
No coordinated strategy by which the Government and the private
sector could bring together the talent and resources of American tech-
nolroy existed, nor was there any centralized planning and policy-
nakin body at the Federal level to coordinate the programs that did
exist. Federal research and development programs in energy-related
fields were scattered and carried out through 48 governmental agencies
and 14 conressJonal committees. Congressional direction concerning
national objectives in energy R. & D. was insufficient, and funding
level, historically low relative to need, reflected a lack of both focus
and urgency.
Faced with both a steadilv widening gapr between domestic demand
and domestic supply and the need for an integrated energy policy,
President Nixon on March 25, 1971, set the stage for things to come
by proposing a massive restructuring of the executive branch. The
President's proposal called for the consolidation of seven of the exist-
ing departments--Agriculture, Interior, Commerce, Transportation,
Labor, os nd Urban Development, and Health, Education, and
1,V fare-into four new departments-Natural Resources, Economic
Affairs, Community Development, and Human Resources. Those pro-
gMranv affecting the environme, t would fall under the new Depart-
ment of Natural Resources (DNR). A single bill was introduced in
both Iouses to set up the proposed DNR and implement the proposed
reorganization. hearings were held on the subject during May, June,
and July. Although no action was ultimately taken on the bills, the
foindatwion upon which future administration reorganization and re-
se air hl and development proposals could be built had been laid.
Te Etiervw Reor~nalization Act and the Federal Nonnclear Enercy
Research and Development Act, both approved in late 1974 together






5

established the organizational framework, program and policy guid-
ance, and funding authorizations for the Nation's energy research and
development program in nonnuclear fuel sources.
The Energy Reorganization Act brought together in the new Energy
Research and Development Administration (ERDA) the major
Federal energy R. & D. programs and the responsibility for leading
the national effort to develop the technology needed to assure the
United States of ample and secure supplies of energy at reasonable
prices. The Energy Reorganization Act did not set forth programmiatic
congressional policy regarding the goals or objectives of ERDA's
programs.
The Federal Nonnuclear Energy Research and Development Act
provided the parallel programmatic legislation, policy guidance, and
funding authorizations for the Nation's nonnuclear energy research
and the development program. The act authorized ERDA to design
and implement the program. Nuclear research would continue to be
guided by the Atomic Energy Act of 1954 and the Joint Committee
on Atomic Energy.















II. THE FEDaAL NON'ONUCLEAR RESEARCH AND DEVELOPMENT ACT
Convinced that the need for a comprehensive energy research and
development program was too acute to wait for massive Federal reor-
ganization, Senator Jackson introduced S. 1283, a bill to establish
a massive federally-sponsored national program for research, develop-
ment, and demonstration in fuels and energy. In the words of Mr.
Udall, referring to S. 1283:
It's going to take long and difficult negotiations with
bureaucrats, committee chairmen, and constituent groups to
work out reorganization problems. The approval of an energy
R. & D. program and new management structure shouldn't
be held pending that outcome. We ought to move ahead with
S. 1283, set a temporary structure in place, and get programs
moving.
As introduced on March 19, 1973, S. 1283 had three main parts-
first, a set of policy objectives enumerated in section 102; second, the
establishment of an Energy Research Management Project as de-
scribed in section 103; and, third, the creation of five separate and
independent Government development corporations for five different
types of energy forms as set forth in titles II-VI. The bill was the first
legislation to describe a comprehensive energy R. & D. program for a
number of different technologies and fuels. An identical bill, H.R.
6602, was introduced in the House on April 4 by Mr. Foley.
The policy statement of the bill declares it the policy of the Congress
to establish and maintain a national program of research and develop-
ment of fuels and energy adequate to:
(a) encourage the conservation of limited energy resources
and maximize the efficiency of energy development, production,
conversion, and use;
(b) insure adequate, reliable, economical, and environmentally
acceptable energy systems to support the essential needs of
modern society including the established social objectives of Fed-
eral, State, and local government;
(c) discover the most attractive short-term solutions to imme-
diate problems of the energy system .;
(d) develop the technology and information base necessary to
support development of the widest possible range of options
available for future energy policy decisions .
(e) provide within 10 years the option and the capability for
self-sufficiency for the United States . .; and
(f) establish within the Federal Government central re-
sponsibility and institutional capability for maintaining con-
tinuing assessment, overview, and direction of the energy research
and development activities .


(7)








To implement these objectives the bill called for a 10-year, $20-
billion-program for energy R. & D.
As described in section 103(f), the Energy Management Project was
not a reorganization of existing Federal energy functions. It was an
interim organization established to enable the Federal Government
to begin a comprehensive research strategy while the process of
Government reorganization for energy was underway. S. 1283 had
always contemplated that a permanent reorganization for the ad-
ministration of R. & D. would be carried out. Because the Interior
Committees of both Houses could not undertake such a reorganization,
however, an interim interagency mechanism-the Energy Manage-
ment Project-was established to carry out the program authorized
by the measure until the reorganization did take place. Once a perma-
nent lead agency for energy and energy R. & D. had been created,
the duties and budget of the Project could be assigned to that agency.
Titles I1-VI set up not only specific guidelines for the design, im-
p)elmentation, and funding of the corporations, but also five specific
teichnologies which were to be pursued. The scope of the measure, how-
e~rr goes beyond the demonstration stage. Titles I-VI authorize
each corporation to "design, construct, operate, and maintain a demon-
stration-type facility for each method selection. ." If feasibility is
(1enionstrated. the corporation is authorized to "design, construct, op-
erate, and maintain, for each such method demonstrated, a full scale,
(ohmlercialized facility" to manufacture these fuels.
While focusing the Nation's stepped up short-term energy research
efforts on its most abundant source of fuel--coal, S. 1283 also laid the
tu dwork for advancing energy research and development in un-
conventioiial energy sources and technologies. (Section 104(b).)
The Federal role in such an effort would be to "Identify opportuni-
ties to accelerate the commercial application of new energy technol-
ogies by means of joint Federal-industry corporations and to submit
plans to Cwoiressrecommending the establishment of such corpora-
tions and the appropriate level of Federal financial participation in
each."
While endorsing in general the objectives of S. 1283 and concurring
with t )e bills finding that the national energy R. & D. problems could
tAk o1 ed within 10 years, the administration o)posed the bill's method
of solving the Nation's energy problems. In response to Senator Jack-
oes forviews concerningg S. 12S3, the Office of Management
aid Iludget (OMB) wrote the committee that the administration
opposed the measure "both on the basis of its organizational provisions
s well as several of its sil)stantie prisonss' Roy L. Ash, Director
of the OMB, said the legislation "could have the effect of bringing
p~ri vate setor energy invest meant to a near standstill," be overly restric-
ive by dcnolistrating oIny certain technologies, and be wasteful by
dev eloping sonmie technologies which might never prove to be tech-
11ia111Y, e(onoMMiCally, or environmentally acceptable.
As repIorted by the Seate Interior and Insular Affairs Committee
on I)ecender 1, S. 1288 reflected only minor shifts of emphasis among
its policy objet i ves. Ile idea of providing the I'lhited States with the
capabilit a( option of self-sufliciency within 10 years received
ttei a letion and became the pinnipal purpose of the bill. Con-







servation and the efficient development of energy resources were ac-
corded renewed emphasis throughout the measure. The other objectix es
in the statement of policy, including the Energy Management Project
concept, remained relatively unchanged.
Fedoa-int corporations as
The five single-purpose jointFederal-industry cor
originally set forth in S. 1283 were not, however, with the exception
of the title on Geothermal Energy, included in the bill as reported.
In what appeared to be an effort to strike a balance between too much
and too little specificity, the committee deleted the specific authoriza-
tions for the corporations and established a list of priorities for ex-
penditures and set specific deadlines for a series of reports to Congress
on R. & D. strategies in various program areas. (Section 106.)
S. 1283 directed that a research strategy be formulated tht em-
phasized improved coal mining methods and extraction of naturalt
gas and petroleum from coal during the short run-through 1980. For
the long run-to the year 2000 and beyond-the measure called for
research, development, and demonstrations of the commercial feasi-
bility of such exotic energy sources as tidal power, solar, and animal
wastes.
S. 1283 also authorized a wide range of Federal assistance for energy
research, development, and demonstration projects, including con-
tracts to build and operate federally owned facilities, Federal pur-
chases or guarantees, Federal loans, and the creation of Goveinmet
industry corporations.
The administration's own proposal, embodied in H.R. 111510. caUK
for a 5-year, $10-billion program aimed at helping the United States
become independent of foreign sources of energy. While the admis
tration sharply upgraded support for nonnuclear energy reirch
nuclear energy still received the bulk of the funds.
In comparing its own proposal with S. 1283, the admii o
singled out four points which they believed made their proposal t (he
better of the two. First, by passing the ERDA-NEC proposal before
establishing the complex public-private cor )otrate structure for tihe
management of energy research and development as envisioned in
S. 1283, Congress could create the two agencies without d.la and '11a1 n
precious time for establishing legislation and admistrayiw~ ei lgy
policies to define the Nation's energy goals. Secondly. the lead Federal
agency, according to administration officials, should be headed by
a single administrator, not by a commission. Thirdly. it was time to
split up the promotional and regulatory aspects of the AEC mandate.
Finally, there was a danger, as the administration viewed it. Ihat the
energy management project might become a pernent agency.
The Environmental Subcommittee of the House Committee on in-
terior and Insular Affairs began its hearings on the subject of energy
research and development on May 16, 1973. with the coilsideratioln of
H.R. 6602, but failed to approve a bill that year. A large number of
related bills were referred to the subcommittee during the course of
subsequent hearings, and the subcommittee began its markup on Fel-
ruary 4, 1974. Upon conclusion of subcommittee consideration, a clean
bill, H.R. 13565, was introduced on March 18. with the bipartisan
sponsorship of 18 members of the committee.







During the subsequent period of subcommittee and full committee
consideration of this legislation, a closely related measure, the Energy
Reorganization Act, was being considered in the Government Opera-
tions Committees of both Houses of Congress. Upon enactment, the
legislation would have authorized the reorganization of energy-related
Government agencies into a single body responsible for all energy re-
search and development.
Since H.R. 13565 proceeded in tandem with the latter stages of the
ERDA-NEC proposal, the bill was constructed to blend with the
organizational framework in the legislation.
H.R. 13565 contained no organizational framework or administra-
tive provisions for implementing its R. & D. program. Instead, all
powers were delegated to an administrator as defined in section 11.
The policy objectives of H.R. 13565 presented few differences from
those of S. 1283 in their overall content, but some did, however, differ
in their scope and emphasis. The policy objectives included seeking
energy self-sufficiency, encouraging private development of energy re-
sources, exploring the widest possible range of energy options, broad-
ening the base of public ownership of energy industry capital, and
assuring public access to information.
In designing the substance of the research and development pro-
gram, the committee did not set out a specific research program as much
as it indicated directions in which it wanted the effort to go. The
measure left a good deal of flexibility in its listing of specific tech-
nologies which the committee deemed- worthy of special emphasis and
high priority and provided a set of five principles to shape the design
and execution of the Federal program in nonnuclear energy research.
(Section 3.)
Federal assistance under H.R. 13565 was limited to areas where the
private sector was unlikely to move without Federal aid because risks
were too high, capital requirements were too large, or the potential for
recapturing development costs was too low. (Section 3(d).)
Reported by the House Interior Committee on June 26, the bill
provided the program and policy guidance as well as the funding au-
thorizations for ERDA's nonnuclear efforts, while nuclear research
and development would continue to be guided by the Atomic Energy
Act of 1954 and the Joint Committee on Atomic Energy. ERDA's
Administrator would be directed to give priority to energy conserva-
tion and a wide range of energy sources under detailed guidelines.
The White House, on September 13, stated that H.R. 13565 as passed
by the House was acceptable to the administration and was a "very
necessary prelude to the creation of ERDA.... So it's priority legisla-
tion." This represented an apparent change in the administration's
position. Budget Director Roy Ash had objected to the House measure
before President Ford took office on tile grounds that it was overly
restrictive. Secretary of the Interior Rogers C. B. Morton also had
opposed the measure, arguing that the administ ration already had an
ad(IIute energy research and development, program.
Shortly thereafter, representatives from the House and Senate met
in conference to attempt to reach an agreement on S. 1283 and H.R.
13565.








Originally, the bill (S. 1283) as approved by the Senate contained
language specifically placing Congress on record as supporting the
goal of attaining the capability of energy self-sufficiency within 10
years through "a commitment similar to those undertaken in the Man-
hattan and Apollo projects" and a research, development, and demon-
stration program in nonnuclear fuels. Authorized to be appropriated
for this goal was $20 billion over 10 years. The conference compromise
dropped the reference to self-sufficiency and to the 10-year timeframe
in which it was hoped to be achieved. As explained in the Conference
Report (H. Rept. 93-2563):
Subsection 3 (a) incorporates the introductory language of
section 102 of the Senate bill with changes to reflect more
recent views on energy policy. The Senate version of the
measure included a statement of the policy of the Congress
"to develop within ten years the option and the technological
capability for the United States to become energy self-suffi-
cient through the use of domestic energy resources by socially
and environmentally acceptable means." The House version
contained no comparable provision. The conference commit-
tee wished to retain the sense of urgency expressed in the
Senate version without prejudging the time span of the re-
quired accelerated research, development, and demonstration
effort. The committee also wished to emphasize that the ob-
jective of this effort is to open up the broadest range of
energy options for use in the formulation of future energy
policy choices.
The law now includes the following statement among its findings,
reflecting the Conference Committee intent:
The urgency of the Nation's energy challenge will require
commitments similar to those undertaken in the Manhattan
and Apollo projects; it will require that the Nation under-
take a research, development, and demonstration program in
non-nuclear energy technologies with a total Federal invest-
ment which may reach or exceed $20,000,000,000 over the next
decade.
With regards to research management, the conferees adopted the
House language which vested management of nonnuclear energy
R. & D. in ERDA. The conferees dropped a Senate provision which
would have created a joint Federal-industry corporation for geo-
thermal energy demonstration.
In deciding on a set of principles to govern the R. & D. program,
the Conference Committee adopted modified House language for the
principles. The principles emphasized energy conservation, the weigh-
ing of social and environmental costs of energy development, an
assessment of water requirements of new energy technologies, and the
development of renewable energy resources.
Conferees merged Senate and House provisions which required
comprehensive plans for nonnuclear energy research and development.
The Senate version called for a three stage program to meet energy


74-110 0 76 3






12


needs in the short, medium, and long term. The House measure pro-
vided for a comprehensive strategy that focused on a long list of
nonnuclear energy technologies. The conference agreement called for
the ERDA Administrator to submit a plan by June 30, 1975, to
achieve solutions to energy problems in the time periods required by
the Senate bill and taking into account the technologies enumerated
in the House version.
The Senate and House provisions for Federal assistance were sim-
ilar, except that the House version would authorize incentives for
inventors and joint efforts by industry and universities. The more
extensive House provisions were adopted by the conferees.
On December 17, 1974, Congress cleared S. 1283 (P.L. 93-577) to
establish a 10-year, $20-billion program of research and development
in nonnuclear energy resources. The final version of the nonnuclear
energy policy legislation leaned heavily toward the House emphasis
on energy conservation, environmental protection, and the develop-
ment of renewable energy sources such as solar energy. Conferees
emphasized that S. 1283 was designed to establish within the Energy
Research and Development Administration "a comprehensive non-
nuclear energy research, development, and demonstration program to
create the broadest range of future energy policy options for the
United States."









III. THE ENERGY REORGANIZATION ACT


Warning that "unless we act swiftly and effectively we could face a
genuine energy crisis in the foreseeable future," President Nixon,
June 29, 1973, announced a four-point program for dealing with the
Nation's fuel problems. At this time, Nixon, by Executive order, estab-
lished an Energy Policy Office in the Executive Office of the President.
The Office was to be responsible for "the formulation and coordination
of energy policies at the Presidential level.," and would combine the
duties of the Special Energy Committee and National Energy Office
that had been established in April 1973, by the President.
Nixon also asked Congress to create two other energy-related offices:
a cabinet-level Department of Natural Resources, "responsible for the
balanced utilization and conservation of America's energy and natural
resources" and an Energy Research and Development Administration
with "central responsibility for the planning, management and conduct
of the Government's energy research and development and for working
with industry so that promising new technologies can be developed and
put promptly to work."
The DENR was, as proposed, to take over the then existing activities
of the Department of the Interior, except the Office of Coal Research
and certain research and development programs. It would also have
assumed duties of other Federal agencies in the energy and resource
field: the Forest Service, the Department of Agriculture, the Army
Corps of Engineers, the Department of Commerce, the Atomic Energy
Commission, the Water Resources Council, and the Department of
Transportation.
The proposed Energy Research and Development Administration
was to place "significant new emphasis on fossil fuels and potential new
forms of energy, while also assuring continued progress in developing
nuclear power." All functions of the Atomic Energy Commission,
except licensing and regulatory responsibilities, were to be transferred
to ERDA.
H.R. 9090 and S. 2135, introduced June 29, 1973, and July 10, 1973,
respectively, contained the ERDA and regulatory commission pro-
posal, included as part of a more comprehensive package to also estab-
lish a Department of Energy and Natural Resources. Sponsors were
Representative Chet Holifield and Senator Henry M. Jackson. The
objectives of the bill, as stated, were "to promote more effective man-
agement of certain related functions of the executive branch by reor-
ganizing and consolidating those functions in a new Department of
Energy and Natural Resources by reorganizing and consolidating
others in a new Energy Research and Development Administration,
and for other purposes."
H.R. 11510 and S. 2744 were introduced November 15 and 27, 1973,
respectively, to propose ERDA and a nuclear regulatory commission
separately from the other aspects of the previous bills. Sponsors were
Representative Chet Holifield and Senator Abraham Ribicoff.
(18)







Hearings on these bills were held by the House and Senate Govern-
ment Operations Committees beginning on July 24, 1973, and con-
tinuing through March 13, 1974.
House passed H.R. 11510 on December 19, 1973. The House Govern-
ment Operations Committee report said the bill, called the Energy
Reorganization Act of 1973, would provide the organizational base
for a "well-managed, centrally-directed attack on energy problems in
order to make this Nation self-sufficient in clean energy for the decades
ahead."
Senate Report 93-980 on S. 2744 was sent to the Senate June 27,
1974. In this report the committee made clear that it did not want
the new Energy Research and Development Administration (ERDA)
to be overwhelmed by the massive nuclear energy research programs
that would be transferred from the Atomic Energy Commission
(AEC), which would be broken up and abolished. The committee also
expressed concern about the danger of thefts of nuclear materials
that could be made into explosives, and singled out energy conserva-
tion and environmental protection for special attention. It was noted
too that, in creating ERDA, energy research and development had
lagged behind other fields such as national security, space, health and
transportation. The Nation's increasing reliance on imported oil could
be traced to the failure to develop alternative sources of energy. It
said ERDA's primary goal was to develop energy technologies neces-
sary to make the United States self-sufficient in energy by 1984.
As reported, S. 2744 differed substantially from the version pro-
posed by Nixon and a companion measure (H.R. 11510) which had
passed the House December 19, 1973, particularly in its provisions
aimed at energy conservation, nonnuclear research and nuclear safety.
Instead of renaming the regulatory arm of the AEC the Nuclear
Energy Commission, as proposed by Nixon, S. 2744 abolished the AEC
and created the Nuclear Safety and Licensing Commission.
S. 2744 also established a Council on Energy Policy, which was
neither requested nor wanted by the administration.
S. 2744 did not contain administration-sponsored language trans-
ferring to ERDA from the Environmental Protection Agency (EPA)
programs to develop a low-pollution automobile engine and tech-
nologoy to control pollution from electric power and industrial plants.
The committee said the programs were closely related to EPA's regu-
latorv programs.
The Senate also approved 12 amendments concerning programs and
research priorities for ERDA, requirements for reporting to Con-
gress, ulblic information and participation, and ERDA's operational
proce'du res.
Senator Percy introduced amendments to direct ERDA to promote
e(lucational programs to assure an adequate supply of manpower for
energy research and development, and to direct the ERDA adminis-
trator to include in his annual report a description of the agency's
activities to promote technologY on the efficient use of energy. His
third amendment, made it clear that the Chairman of the Nuclear
Safety and Licensing Commission would be ERDA's chief
adiinist rator.







Senator Metcalf's amendments provided that exemptions to the
Freedom of Information Act relating to nuclear safety should not
include trade secrets unless the Nuclear Safety and Licensing Com-
mission found that such disclosure would cause irreparable competi-
tive injury, and directed ERDA to provide information, technical
studies and assistance to witnesses for any party to a licensing or rule-
making proceeding under the Atomic Energy Act.
Amendments to require that ERDA's research priorities should not
be decided on energy criteria alone but should include considerations
of materials conservation of energy-related resources, reduction of
pollution and potential for export, and to direct the ERDA Adminis-
trator to submit to Congress a range of program choices and fund-
ing levels for each of the agency's six program areas, were sponsored
by Senator Humphrey.
An amendment introduced by Senator Metzenbaum directed the
ERDA Administrator to publicize information on new technologies
for energy conservation and new energy sources as they become avail-
able for general use.
Senator Abourezk's amendment directed the ERDA Administra-
tor to encourage research on and development of clean and renewable
energy sources.
The authority of the ERDA Administrator to use other Govern-
ment agencies in R. & D. projects was made discretionary in an
amendment by Senator Pastore.
Senator Randolph sponsored an amendment directing the President
to report to Congress on his recommendations for the appropriate
reorganization of regulatory agencies dealing with energy issues.
A final amendment, introduced by Senator Baker, authorized
$1 million for a study by ERDA of potential power sites in each of
the nine regions in the Nation.
On August 15, 1974, the Senate passed H.R. 11510 as amended by
the language of S. 2744. The bill passed both Houses on October 10,
1974, and was signed into law the following day.
As signed by President Ford, the Energy Reorganization Act of
1974, created two new agencies: the Energy Research and Develop-
ment Administration, (ERDA) and the Nuclear Regulatory Com-
mission (NRC). The act abolished the Atomic Energy Commission,
and transferred all of its licensing and regulatory functions to the
NRC.1 All other functions, including nuclear weapons development
and production, were transferred to ERDA. Also transferred to
ERDA in section 104 of the act were the following programs:
-from the Department of the Interior, all functions of the
Office of Coal Research, all fossil fuel energy R&D programs
of the Bureau of Mines "energy centers", and functions that
relate to underground electric power transmission research;
'Transfers made from the AEC to the NRC In sections 201 (f) and (g) were: all the
licensing and related regulatory functions of the AEC; the functions of the Atomic
Safety and Licensing Board Panel and Appeal Board: and those personnel relating to
research for confirmatory assessment related to licensing and regulation.
2 Special parts of the AEC transferred to ERDA include the following: the General
Advisory Committee: the Patent Compensation Board; and the Divisions of Military
Application and Naval Reactors.






16


-from the National Science Foundation, all functions relating
to solar heating and cooling development, and geothermal
power development; and
-from the Environmental Protection Agency, functions re-
lating to research, development and demonstration of alterna-
tive automotive systems-but not those functions relating to
assessment or monitoring of automotive systems for regulatory
purposes.
ERDA is headed by an Administrator, appointed by the President,
with advice and consent of the Senate. The act establishes six
Assistant Administrators, each in charge of a specified area of re-
sponsibility. These areas delineate the six major organizational units
in ERDA as follows: Fossil Energy; Nuclear Energy; Environment
and Safety; Energy Conservation; Solar, Geothermal, and Ad-
vanced Energy Systems and National Security (weapons research).
The general functions of ERDA are spelled out in section 103 of
the act.
In title II of the act the duties and organization of the Nuclear
Regulatory Commission are described. Five Commissioners are to be
selected by the President with the advice and consent of the Senate.
The Chairman, designated by the President, will be the chief execu-
tive and administrative officer. A Director of Regulation is to be ap-
pointed to serve as a coordinator for the functions of the three major
offices of the Commission. These three offices-the Office of Nuclear
Reactor Regulation, the Office of Nuclear Materials Safety and Safe-
guards, the Office of Nuclear Regulatory Research-are the major or-
ganizational components of the commission.
The directors of each office have statutory authority to deal di-
rectly with the Commissioners.

THE ENERGY RESOURCES COUNCIL
Section 108 of the act established in Energy Resources Council in
the Executive Office of the President. The Council is an interim inter-
agency coordinating unit designed to advise the President on energy
reorganization and to make recommendations to the President and
Congress for measures to improve energy resources.
The Council is to terminate upon enactment of a permament de-
partment for energy and natural resources, or 2 years after it be-
comes effective, whichever occurs first. It is to be composed of:
-Secretary of the Interior
-Administrator of I he Federal Energy Administration
-Administrator of the ERDA
-Secretary of State
-IDirector of the Office of Management and Budget
-Such other officials of the Federal Government as the President
shall designate
On October 15, 1974. in Executive Order No. 11814, President Ford
designated as Chairman the Secretary of the Interior and added these
officers to the Council in activating it:
-Assistant to the President for Economic Affairs
-Secretary of the Treasury







-Secretary of Defense
-The Attorney General
--Secretary of Commerce
-Secretary of Transportation
-Chairman of the AEC (until its abolishment is effective)
-Chairylan of the Council of Economic Advisers
-Administrator of the Environmental Protection Agency
-Chairman of the Council of Environmental Quality
-Director of the National Science Foundation
-Executive Director of the Domestic Council

REPORTS REQUIRED IN THE ACT
Certain reports to the President or Congress are required in the
Act:
Section 109 requires a report by the President with the assistance of
the Energy Resources Council on future reorganization which is
deemed advisable for energy and related functions in the Federal
Government.
Section 207 outlines a nuclear energy center site survey to be con-
ducted by the Nuclear Regulatory Commission. The Nuclear Regu-
latory Commission is also required under section 208 to submit to
Congress quarterly reports listing any abnormal occurrences associ-
ated with any licensed or regulatory facility.
Section 307 requires annual reports at the end of each fiscal year by
both the ERDA and the NRC on their activities and plans. It also
requires the ERDA Administrator to report on the desirability and
feasibility of transferring to the Department of Defense or to other
Federal agencies ERDA's national security functions.












IV. Tim MANDATE FOR THE FEDERAL NONNUCLEAR R. & D. EFFORT
Taken together, the Federal Nonnuclear Research and Development
Act and the Energy Reorganization Act represent the foundations of
a massive new Federal effort for research, development and demon-
stration of new energy technologies.
The Energy Reorganization Act, Public Law 93-438, is primarily a
reorganization act. It establishes the Energy Research and Develop-
ment Administration (ERDA) and abolishes the Atonic Energy
Commission (AEC), dividing its functions between ERDA and the
Nuclear Regulatory Commission (NRC). The major objective of this
legislation is the creation of a comprehensive, independent energy
research and development agency which would play the leading Fed-
eral role in the balanced and speedy development of various energy
production technologies. It is also an important part of the act to sep-
arate the research and development functions of the AEC for nuclear
power generation from the regulatory functions of that agency.
The responsibilities of the ERDA Administration are framed in
general terms. The act does not set forth congressional intent concern-
ing the conduct of energy R. & D. programs now under ERDA, nor
does it provide guidance to the administrator on which specific tech-
nologies should receive attention and in what order of priority. In
establishing ERDA the act does, however, consolidate the Federal
Government's fragmented research and development functions into a
single new agency. ERDA brought together the major federal energy
R. & D. programs and shouldered the responsibility for leading the na-
tional effort in the development of the technology needed to assure
the United States of ample and secure supplies of energy at reasonable
prices.
The declaration of purpose, as stated in section two of the act, notes
that ". . the general welfare and the common defense and security
require effective action to develop, and increase the efficiency and relia-
bility of use of, all energy sources to meet the needs of present and
future generations, to increase the productivity of the national
economy and strengthen its position in regard to international trade,
to make the Nation self-sufficient in energy, to advance the, goals of
restoring, protecting, and enhancing environmental quality, and to
assure public health and safety."
The Federal Nonnuclear Energy Research and Development Act
provided the parallel programmatic legislation, policy guidance, and
funding authorizations for the ERDA. The act authorized ERDA to
conduct a comprehensive, national program of basic and applied re-
search and development capable of providing near, middle, and long
term supply solutions to the Nation's energy problems. In seeking
solutions to the energy problems, ERDA would not only concern itself
with proving the feasibility of technological options but also concern
itself with the nontechnological aspects of the energy situation-
transportation, resource, manpower, and capital availability; public
acceptability; or institutional, jurisdictional, economic, and environ-
(19)


74-110 0- 76 4






20


mental compatibility. The act was necessary for, while detailed con-
gressional policy and procedures concerning nuclear research had been
spelled out or had evolved under the Atomic Energy Act, there were
no coill)arable guidelines for nonnuclear energy research.
The act dictates broad policy guidelines and governing principles
by which ERDA's program is to be governed. It states that the policy
of Congress is to develop on an urgent basis the technological capa-
bility to support the broadest range of energy policy options through
conservation and the use of domestic energy resources in socially and
environmentally acceptable ways. Among the governing principles of
the R. & D. program are the following:
-Energy conservation is to be a primary consideration in the
design and implementation of the Federal non-nuclear energy
program.
-The environmental and social consequences of a proposed pro-
grain are to be analyzed and considered in evaluating its
potential.
-Any program for the development of a technology which may
require srnificant consuml)tive use of water after the technol-
ogy has reached the stage of commercial application is to include
thorough consideration of the impacts of that technology.
-Heavy emphasis is to be placed on those technologies which
utilize renewable or essentially inexhaustible energy sources.
The act further directs that the program is to (1) facilitate the com-
inercial development of adequate energy supplies for all regions of the
United States; (2) consider the urgency of the public need for the
technologies supported; (3) insure that the problems treated have
national significance; and (4) direct Federal support to areas which
might not attract private capital.
In compliance with the requirements of section 6 of the Nonnuclear
Energy Research and Development Act, ERDA in June of 1975 re-
leased a long range plan for the conduct of its program. This report
entitled "A National Plan for Energy Research, Development and
Demonstration" set forth five goals for the Federal energy R. & D.
effort. It is interesting to compare the stated goals with the mandate
explicitly or imi-)plicitly conveyed by the two principal enabling
statutes ant ho rzing the program.
Because the language of the statutes as well as that of the ERDA
plan is couched in broad terIlns subject to a range of definitions, com-
parison becomes a subjetive matter. The views of each of the authors
of this report are set forth below:
MNs. Kirkpa trick-
In preparing its plan, ERDA proposes five goals which, taken to-
gether, constitute the energy, policy for the Nation. Although these
goals represent a serious and praiseworthy effort to establish a national
energ policy, the congressional mandate for ERDA to carry out these
objectives is in many ways narrow and inadequate.
The first goal is stated as follows: To maintain the security and
po11 icy independence of tihe Nation.
In the congressional mandate, major emphasis is given to energy
self-sflficieiicy rather than international cooperation, which seriously
restricts awl distortss the meaning of policy independence. For ex-
amlle, there is 11 consideration of the potential impact of interna-
tional political (leveloplments on energy policies.






21

The second goal : To maintain a strong and healthy economy, provid-
ing adequate employment opportunities, and allowing the fulfillment
of economic aspirations (especially in the less affluent parts of the
population).
This goal is not specifically addressed anywhere in either act. The
goal implies a need for a vigorous socioeconomic research program to
gain some understanding of the relationship of economic growth,
energy and the quality of life. And yet the congressional mandate does
not provide a vehicle for carrying out such a program.
The third goal: To provide for future needs so that life styles remain
a matter of choice and are not limited by the unavailability of energy.
This goal is adequately addressed in the congressional mandate,
where emphasis is placed not only on energy supply but energy
demand.
The fourth goal: To contribute to world stability through coopera-
tive international efforts in the energy sphere.
There is no definite attention accorded this goal in the congres-
sional mandate. The potentiality of providing one or more new inter-
national institutes to examine energy problems globally needs to be
provided for.
The fifth goal: To protect and improve the Nation's environmental
quality by assuring that the preservation of land, water, and air re-
sources is given high priority.
Consistent with the goal, the two acts do attach grave importance
to the preservation of the environment. However, a method for dealing
with social concern and community resistance at the local level is not
afforded sufficient attention.
Mr. Downing-
In establishing the five goals for the long range plan, ERDA has
for the most part paralleled, both in scope and direction, its mandate as
defined by the Energy Reorganization Act and the Federal Nonnu-
clear Energy Research and Development Act.
Whether or not the first of the five goals-to maintain the security
and independence of the Nation-represents an accurate interpreta-
tion of ERDA's mandate depends on which definition of the terms
"security" and "independence" one uses. Throughout the development
of a comprehensive national energy research and development pro-
gram, the administration has equated the security and independence of
the United States with the achievement of energy self-sufficiency. As
long as this Nation had to rely on foreign sources of energy to any
degree, she would be susceptible to threats of international blackmail
and economic disruptions. If ERDA used this interpretation of the
two concepts as the basis of the first goal, then the objectives of the
two acts clearly do not coincide with the intent of the goal. If, on the
other hand, ERDA, believed that the security and independence of the
Nation could be maintained simply by lessening our dependence on
foreign supplies by increasing domestic production and increasing
the efficiency of both production and use of present sources, then the
goal of maintaining the security and independence of the Nation has a
basis within ERDA's mandate.
The second of the five goals-to maintain a strong and healthy
economy, providing -adequate employment opportunities and allowing
the fulfillment of economic aspirations (especially in the less affluent
parts of the population)-follows the provisions of the acts to a some-





22


what lesser degree. The construction, operation, and maintenance of
the demonstration facilities would indeed provide an increase in em-
ployment opportunities and, thus, a stimulus to the economy. These
new employment opportunities, though, would not affect the lower
income brackets to the degree advocated by the goal. For the most part,
they would be filled by well educated and well trained people. If these
facilities prove that the United States can produce energy from new
sources at competitive prices, then, at such a point when these tech-
nologies become commercially available, the United States will not
only have more fuel, but there will be less capital exiting the economy
to pay for fuel imports. This money could be used for business invest-
ments. Theoretically, with more money in people's pockets, people will
tend to buy more, production will increase, businesses will be hiring
more workers, and the economy will again prosper. In this respect the
goal does have some basis in congressional intent.
The third goal-to provide for the future needs so that life styles
remain a matter of choice and are not limited by the unavailability of
energy-is one of the key objectives in the national R. & D. program.
It isn't stated specifically in either act, but the whole idea of achieving
solutions to this country's energy problems is for this purpose. Energy
is the sine qua non of a modern society's ability to do the things it
wants to do. Such goals as maintaining the standard of living for a
growing population, national security, improved quality of life, in-
creased affluence, and increased assistance to less developed societies
can only be attained with increasingly large amounts of energy. While
lower energy costs allow a society more freedom of action in seeking
its goals, the availability of energy is the first requirement of having
any freedom of action at all.
The fourth goal-to contribute to world stability through coopera-
tive international efforts in the energy sphere-is a. somewhat idealistic
but basically sound interpretation of ERDA's mandate. Section 104
(9) of the Energy Reorganization Act delegates the Administrator
with the responsibility ". . to encourage -and participate in inter-
national cooperation in energy-related environmental research and de-
velopment." Such efforts might lead to some form of international
resolution or an agreement under the auspices of the United Nations,
but with the ideological -and economic divisions of the world at pres-
ent-the East v. the West, the oil producing v. the oil importing coun-
tries, the developed v. the lesser developed countries-progress would
tend to be regional and limited.
The fifth goal-to protect and improve the Nation's environmental
qualityy by assuring that the preservation of land, water, and air re-
sotires is given high priority-clearly follows the rhetoric of the acts.
Section 5(a) of the Federal Nonnuclear Energy Research and Devel-
opment Act clearly places primary emphasis on energy conservation
and the development of energy sources in environmentally sound ways.
'he productive use of wastes, reuse and recycling of materials, im-
provemniits in automobile design for increased efficiency and lower
en, issions, and advanced II rban and airchite,-tural design to promote
efficient energy use are all elements of the program's effort to achieve
solutions to the energy problems of the Nation. The budget for the
It. & ). program, however, fails to place equal importance on conser-
vation. The budget authorizes only 2 percent of the total amount
appropriated to be used for conservation.

























APPENDIXES


APPENDIX I
Energy Reorganization Act of 1974
(Public Law 93-438)














Public Law 93-438
93rd Congress, H. R. 11510
October 11, 1974

R Rt
To reorganize and consolidate certain functions of the Federal Government in
a new Energy Research and Development Administration and in a new Nuclear
Regulatory Commission in order to promote more efficient management of such
functions.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SHORT TITLE
SECTION 1. This Act may be cited as the "Energy Reorganization
Act of 1974".
DECLARATION OF PURPOSE
SEc. 2. (a) The Congress hereby declares that the general welfare
and the common defense and security require effective action to
develop, and increase the efficiency and reliability of use of, all energy
sources to meet the needs of present and future generations, to increase
the productivity of the national economy and strengthen its position in
regard to international trade, to make the Nation self-sufficient in
energy, to advance the goals of restoring, protecting, and enhancing
environmental quality, and to assure public health and safety.
(b) The Congress finds that, to best achieve these objectives, improve
Government operations, and assure the coordinated and effective
development of all energy sources, it is necessary to establish an
Energy Research and Development Administration to bring together
'and direct Federal activities relating to research and development on
the various sources of energy, to increase the efficiency and reliability
in the use of energy, and to carry out the performance of other
functions, including-but not limited to the Atomic Energy Commis-
sion's military and production activities and its general basic research
activities. In establishing an Energy Research and Development
Administration to achieve these objectives, the Congress intends that
all possible sources of energy be developed consistent with warranted
priorities.
(c) The Congress finds that it is in the public interest that the
licensing and related regulatory functions of the Atomic Energy
Commission be separated from the performance of the other functions
of the Commission, and that this separation be effected in an orderly
manner, pursuant to this Act, assuring adequacy of technical and
other resources necessary for the performance of each.
(d) The Congress declares that it is in the public interest and the
policy of Congress that small business concerns be given a reasonable
opportunity to participate, insofar as is posssible, fairly and equitably
in grants, contracts, purchases. and other Federf! activities relating to
research, development, and demonstration of sources of energy effi-
ciency, and utilization and conservation of energy. In carrying out
this policy, to the extent practicable, the Administrator shall consult
with the Administritor of the Small Business Administration.
(e) Determination of priorities which are warranted should be based
on such considerations as power-related values of an energy source,
preservation of material resources, reduction of pollutants. export
market potential (including reduction of imports). among others.
On such a basis, energy sources warranting priority might include,
but not be limited to, the various methods of utilizing solar energy.


Energy Reorga-
nization Act of
1974.

42 TSC 5801
note.

42 USC 5801.






Energy Research
and Development
Administration,
establishment.




88 STAT. 1233
88 STAT. 1234


Separation of
AEC licensing
and regulatory
functions.


Small business
participation.





Priorities.






26


Pub. Law 93-438 2 October 11, 1974

TITLE I-ENERGY RESEARCH AND DEVELOPMENT
ADMINISTRATION

ESTABLISHMENT
42 USC 5811. SEC. 101. There is hereby established an independent executive
agency to be known as the Energy Research and Development
Administration (hereinafter in this Act referred to as the 'Adninis-
tration").
OFFICERS
Administrator. SEC. 102. (a) There shall be at the head of the Administration an
42 USC 5812. Administrator of Energy Research and Development (hereinafter
in this Act referred to as the "Administrator"), who shall be appointed
from civilian life by the 1President by and with the advice and con-
sent of the Senate. A person may not be appointed as Administrator
within two years after release from active duty as a commissioned
officer of a regular component of an Armed Force. The Administration
shall be administered under the supervision and direction of the
Administrator, who shall be responsible for the efficient and coordi-
nated management of the Administration.
Deputy (b) There shall be in the Administration a Deputy Administrator,
Administrator. who shall be appointed by the President, by and with the advice and
88 STAT. 1234 consent of the Senate.
88 STAT. 1235 (c) The President shall appoint the Administrator and Deputy
Administrator from among individuals who, by reason of their gen-
eral background and experience are specially qualified to manage a
full range of energy research and development programs.
Assistant (d) There shall be in the Administration six Assistant Adminis-
Administrators. trators, one of whom shall be responsible for fossil energy, another
for nuclear energy, another for environment and safety, another for
conservation, another for solar, geothermal, and advanced energy
systems, and another for national security. The Assistant Adminis-
trators shall be appointed by the President, by and with the advice
and consent of the Senate. The President shall appoint each Assistant
Administrator from among individuals who, by reason of general
background and experience, are specially qualified to manage the
energy technology area assigned to such Assistant Administrator.
General Counsel. (e) There shall be in the Administration a General Counsel who
shall be appointed by the Administrator and who shall serve at the
pleasuire of and be removable by the Administrator.
Additional (f) There shall be in the Administration not more than eight
officers. additional officers appointed by the Administrator. The positions of
such officers shall be considered career positions and be subject to
subsection 161 d. of the Atomic Energy Act.
Director of (g hTlia Iivision of Military Applcatiozi transferred to and estab-
Militar lished in the Administration by section 104(d) of this Act shall be
Application. under the direction of a Dlirector of Military Application, who shall be
appointed by the Administrator and who shall serve at thepleasure of
and be removable )y the Administrator and shall be an active comis-
sioned officer of the Armed Forces serving in general or flag officer rank
or grade. The functions, qualifications, and compensation of the
Director of Military Application shall be the same as those provided
42 !17 2011 under the Atomic Energy Act of 1951, as amended, for the Assistant
note. General Manager for Military Application.
(h) officerss appointed pursuant to this section shall perform
such functions as the Administrator shall specify from time to time.
International The Adniinist rator shall delegate to one such officer the special respon-
oooperation. sii)ility for international cooperation in all energy and related envi-
roniental research aind development.







27


October 11, 1974 3 Pub. Law 93-438

(i) The Deputy Administrator (or in the absence or disability of
the Deputy Administrator, or in the event of a vacancy in the office
of the Deputy Administrator, an Assistant Administrator, the Gen-
eral Counsel or such other official, determined according to such order
as the Administrator shall prescribe) shall act for and perform the
functions of the Administrator during any absence or disability of
the Administrator or in the event of a vacancy in the office of the
Administrator.
RESPONSIBILITIES OF THE ADMINISTRATOR
SEC. 103. The responsibilities of the Administrator shall include,
but not be limited to-
(1) exercising central responsibility for policy planning, coordi-
nation, support, and management of research and development
programs respecting all energy sources, including assessing the
requirements for research and development in regard to various
energy sources in relation to near-term and long-range needs,
policy planning in regard to meeting those requirements, under-
taking programs for the optimal development of the various
forms of energy sources, managing such programs, and dissemi-
nating information resulting therefrom; +
(2) encouraging and conducting research and development,
including demonstration of commercial feasibility and practical
applications of the extraction, conversion, storage, transmission,
and utilization phases related to the development and use of
energy from fossil, nuclear, solar, geothermal, and other energy
sources;
(3) engaging in and supporting environmental, biomedical,
physical, and safety research related to the development of energy
sources and utilization technologies;
(4) taking into account the existence, progress, and results of
other public and private research and development activities,
including those activities of the Federal Energy Administration
relating to the development of energy resources using currently
available technology in promoting increased utilization of energy
resources, relevant to the Administration's mission in formulating
its own research and development programs;
(5) participating in and supporting cooperative research and
development projects which may involve contributions by public
or private persons or agencies, of financial or other resources to
the performance of the work;
(6) developing, collecting, distributing, and making available
for distribution, scientific and technical information concerning
the manufacture or development of energy and its efficient extrac-
tion, conversion, transmission, and utilization;
(7) creating and encouraging the development of general
information to the public on all energy conservation technologies
and energy sources as they become available for general use, and
the Administrator, in conjunction with the Administrator of the
Federal Energy Administration shall, to the extent practicable,
disseminate such information through the use of mass communi-
cations;
(8) encouraging and conducting research and development in
energy conservation, which shall be directed toward the goals of
reducing total energy consumption to the maximum extent
practicable, and toward maximum possible improvement in the
efficiency of energy use. Development of new and improved con-


Order of
succession.


42 USC 5813,

88 STAT.1235
88 STAT. 1236


74-110 0- 76 5







28


Pub. Law 93- 438


-4-


October 11, 1974


88 STAT. 1236
88 STAT. 1237


servation measures shall be conducted with the goal of the most
expeditious possible application of these measures;
(9) enouraging and participating ill international coopera-
tion in energy and related environmental research and develop-
ment;
(10) helping to assure an adequate supply of manpower for the
acoplishiment of energy research and development programs.
by sponsoring and assisting in education and training activities
in institutions of higher education, vocational Schools, and other
institutions, and by assuring the collection, analysis, and di-
seminiation of necessary manpower supply and demand data;
(11) encouraging and conducting research and development in
cleai a iid ren ewable Ci ergy sources.


ABOLITION AND TRANSFERS


Atomic energy
C omumi s s ion.
42 USC 5814.


















Interior
D epartment
f'ct -ios.















tIonm sptliy-


Si:c. 104. (a) The Atomic Energy Commission is hereby abolished.
Sections 21 and '22 of the Atomic Energy Act-of 19)54, as amended (42
U.S.C. 2031 and 2032) are repealed.
(b) All other functions of the Commission, the Chairman and
members of the Commission, and the officers and components of the
Comiission are hereby transferred or allowed to lapse pursuant to
the provisions of this Act.
(c) There are hereby transferred to and vested in the Administrator
all functions of the Atomic Energy Commission, the Chairman and
members of the Commission, and the officers and components of the
Conmitssioni except as otherwise provided in this Act
(d) The (General Advisory Conmittee established pursuant to sec-
tion 26 of the Atomic Energy Act of 1954, as amended(42 U.S.C.
2036), the Patent Compensation Board established pursuant to section
157 of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2187),
and the Divisions of Military Application and Naval Reactors estab-
lished pursuant to section 25 of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2035), are transferred to the Energy Re-search
and Development Administration and the functions of theCommis-
sio1n with respect thereto, and with respect to relations with the Mili-
tary Liaison Committee established by section 27 of the Atomic Energy
Act of 1951, as amended (42 U.S.C. 2037), are transferred to the
Admiinistrator.
(e) The'e are hereby transferred to and vested in the Administrator
such functions of the Secretary of the Interior, the Department of
t he I fiterior, aid oficers and components of such department-
(1) as relate to or are utilized by the Office of Coal Research
established pulsuant to the Act of July 1, 1960 (74 Stat. 3:36; 30
I'. S. ('.W;6I1 J66 8) ;......
(2) as relate to or are utilized in connection with fossil fuel
energy re arch and development programs and related activities
conducted by tIe Bureau of Mines -energy centers" and syn-
thane plant to provide greater efficiency in the extraction, proc-
essing, and utilization of energy resources for the purpose of
conserving those resources, developing alternative energy
resources, such as oil and gas secondary and tertiary recovery, oil
shale and syntiltic fuels, iimplroving methods of managing energy-
related wastes and pollutants, and providing technical guidance
needed to establish and administer national energy pol c es; and
(3) as relae to or are utilized for underground electric power
t ransiussion reiarclh.
The Administrator shall conduct a study of the potential energy
applications of helium and, within six months from the date of thme







29


October 11, 1974


-5-


Pub. Law 93-438


enactment of this Act, report to the President and Congress his rec-
ommendations concerning the management of the Federal helium
programs, as they relate to energy.
(f) There are hereby transferred to and vested in the Administrator
such functions of the National Science Foundation as relate to or are
utilized in connection with-
(1) solar heating and cooling development; and
(2) geothermal power development.
(g) There are hereby transferred to and vested in the Administrator
such functions of the Environmental Protection Agency and the
officers and components thereof as relate to or are utilized in con-
nection with research, development, and demonstration, but not
assessment or monitoring for regulatory purposes, of alternative
automotive power systems.
(h) To the extent necessary or appropriate to perform functions
and carry out programs transferred by this Act, the Administrator
and Commission may exercise, in relation to the functions so trans-
ferred, any authority or part thereof available by law, including
appropriation Acts, to the official or agency from which such func-
tions were transferred.
(i) In the exercise of his responsibilities under section 103, the
Administrator shall utilize, with their consent, to the fullest extent
he determines advisable the technical and management capabilities of
other executive agencies having facilities, personnel, or other resources
which can assist or advantageously be expanded to assist in carrying
out such responsibilities. The Administrator shall consult with the
head of each agency with respect to such facilities, personnel, or other
resources, and may assign, with their consent, specific programs or
projects in energy research and development as appropriate. In making
such assignments under this subsection, the head of each such agency
shall insure that-
(1) such assignments shall be in addition to and not detract
from the basic mission responsibilities of the agency, and
(2) such assignments shall be carried out under such guidance
as the Aministrator deems appropriate.


ADMINISTRATIVE PROVISIONS


SEc. 105. (a) The Administrator is authorized to prescribe such
policies, standards, criteria, procedures, rules, and regulations as he
may deem to be necessary or appropriate to perform functions now or
hereafter vested in him.
(b) The Administrator shall engage in such policy planning, and
perform such program evaluation analyses and other studies, as may
be necessary to promote the efficient and coordinated administration
of the Administration and properly assess progress toward the achieve-
ment of its missions.
(c) Except as otherwise expressly provided by law, the Adminis-
trator may delegate any of his functions to such officers and employees
of the Admninistration as he may designate, and may authorize such
successive redelegations of such functions as he may deem to be neces-
sary or appropriate.
(d) Except as provided in section 102 and in section 104(d), the
Administrator may organize the Administration as he may deem to
be necessary or appropriate.
(e) The Administrator is authorized to establish, maintain, alter, or
discontinue such State, regional, district, local, or other field offices as
he may deem to be necessary or appropriate to perform functions now
or hereafter vested in him.


Regulations.
42 USC 5815.


Policy pla.n-
ning and
evaluat ion.


Delegation of
functions.



Organi zation.


Field offices.


88 SrAT. 1238
Report to
President and
Congress.
National
Science
Fondation
functions.

Environmental
Protection
Agency
functions.







Use of other
agencies'
capabilities.







30


Pub. Law 93-438


-6-


October 1 1, 1974


Seal.

Working capital














:Lformat ion
from other
enloies.


p~o~ mervt and
pay,
42 7~.C 5~j If.



~p zAtants.
~ per-
~ 1,















~'ort~ o~
pf~P hem,


(f) The Admiinistrator shall cause a seal of office to be made for
the Administration of such device as he shall approve, and judicial
notice shall be taken of such seal.
(g) The Administrator is authorized to establish a working capital
fund, to be available without fiscal year limitation, for expenses neces-
sary for the maintenance and operation of such common administrative
services as he shall find to be desirable ill the interests of economy and
efihiency. There shall be transferred to the fund the stocks of supplies,
equipment, assets other than real property, liabilities, and unpaid
obligations relating to the services which he determines will be per-
formed through the fiund. Appropriations to the fund, in such amounts
as may be necessary to provide additional working capital, are author-
ized. The working capital fund shall recover, from the appropriations
anId funds for which services are performed. either in advance or by
way of reinibuisement, amounts which will approximate the costs
incurre(l, including the accrual of annual leave and the depreciation
of equipment. T he fund shall also be credited with receipts from the
sale or exchange of its property, and receipts in payment for loss or
damage to property owned by the fund.
(h1) Each department, agency, and instrumentality of the executive
branch of the Government is authorized to furnish to the Adminis-
trator, upon his request, any information or other data which the
Administrator deems necessary to carry out his duties under this
title.
I'ERSON.NEI. AND SERVICES

SEC. 106. (a) The Administrator is authorized to select, appoint,
em1ploy, and fix the compensation of such officers and employees,
including attorneys, ptrstuant to section 161 d. of the Atomic Energy
Act of 1954, as amended (42 V.S.C. 2201(d) ) as are necessary to per-
form the functions now or hereafter vested in him and to prescribe
their functions.
(1) The Administrator is authorized to obtain services as provided
by section: 3109 of title 5 of the United States Code.
(c) The Administrator is authorized to provide for participation
4of military personnel in the performance of his functions. Members
of the Army, the Navy, the Air Force, or the Marine Corps may be
detailed for service in the Administration by the appropriate military
Secretary. puIIuant to cooperative agreements with the Secretary,
for servl(e in the Administration in positions other than a position
the occupant of which nmust be approved by and with the advice and
(:oiseft of the Senate.
(d) Appointment, detail, or assignment to, acceptance of, and service
in, any appointive or other position in the Administration under this
-wction shall in no way affect the status, office, rank, orgrade which
much oflers or enlisted men may occupy or hold, or any emolument,
perqluisite, right, privilege, or benefit iciden to or arising out of
any such status, office, rank, or grade. A member so appointed, detailed,
or assigned shall not be subject to direction or control by his Armed
Force, or any officer thereof, directly or indirectly, with respect to
the resf)o l siblities exercised ir the position to which appointed,
daice, or alSiige(l.
(e) The Administrator is authorized to pay transportation expess
:111dl per diem ill lieu of subsistence expenses, in accordance with
Chapter 57 of title 5 of the United States Code for travel between
places of recruitment and duty, and while at places of duty, of persons
appointed for emergency, tmp ry, or seasonal services in the field
service of the Administration.






31


October 11, 1974


-7-


Pub. Law 93-438


(f) The Administrator is authorized to utilize, on a reimbursable
basis, the services of any personnel made available by any department,
agency, or instrumentality, including any independent agency of the
Government.
(g) The Administrator is authorized to establish advisory boards,
in accordance with the provisions of the Federal Advisory Committee
Act (Public Law 92-463), to advise with and make recommendations
to the Administrator on legislation, policies, administration, research,
and other matters.
(h) The Administrator is authorized to employ persons who are not
citizens of the United States in expert, scientific, technical, or pro-
fessional capacities whenever he deems it in the public interest.


88 STAT. 1240
Personnel of
other agencies.

Advisory boards.

5 Usc app. I.

Noncitizens.


POWERS


SEC. 107. (a) The Administrator is authorized to exercise his powers
in such manner as to insure the continued conduct of research and
development and related activities ini areas or fields deemed by the
-Administrator to be pertinent to the acquisition of an expanded fund
of scientific, technical, and practical knowledge in energy matters. To
this end, the Administrator is authorized to make arrangements
(including contracts, agreements, and loans) for the conduct of
research and development activities with private or public institutions
or persons, including participation in joint or cooperative projects
of a research, developmental, or experimental nature; to make pay-
ments (in lump sum or installments, and in advance or by way of reim-
bursement, with necessary adjustments on account of overpayments
or underpayments); and generally to take such steps as he may deem
necessary or appropriate to perform functions now or hereafter vested
in him. Such functions of the Administrator under this Act as are
applicable to the nuclear activities transferred pursuant to this title
shall 'be subject to the provisions of the Atomic Energy Act of 1954,
as amended, and to other authority applicable to such nuclear activi-
ties. The nonnuclear responsibilities and functions of the Adminis-
trator referred to in sections 103 and 104 of this Act shall be carried
out pursuant to the provisions of this Act, applicable authority exist-
ing immediately before the effective date of this Act, or in accordance
with the provisions of chapter 4 of the Atomic Energy Act of 1954,
as amended (42 U.S.C. 2051-2053).
(b) Except for public buildings as defined in the Public Buildings
Act of 1959, as amended, and with respect to leased space subject to
the provisions of Reorganization Plan Numbered 18 of 1950, the
Administrator is authorized to acquire (by purchase, lease, condeinna-
tion, or otherwise), construct, improve, repair, operate, and maintain
facilities and real property as the Administrator deems to be neces-
sary in and outside of the District of Columbia. Such authority shall
apply only to facilities required for the maintenance and operation
of laboratories, research and testing sites and facilities, quarters, and
related accommodations for employees and dependents of employees
of the Administration, and such other special-purpose real property
as the Administrator deems to be necessary in and outside the District
of Columbia. Title to any property or interest therein, real, personal,
or mixed, acquired pursuant to this section, shall be in the United
States.
(c) (1) The Administrator is authorized to provide, construct, or
maintain, as necessary and when not otherwise available, the follow-
ing for employees and their dependents stationed at remote locations:
(A) Emergency medical services and supplies.
(B) Food and other subsistence supplies.


Re search and
development.
42 USC 5817.


Contracts, etc.








42 USC 2011
note.





Facilities and
real property.
40 USC 601 note.
5 USC app. TI.










Services for
employees at
remote looa-
tions,







32


Pub. Law 93-438
88 STAT, 1241


-8-


October 11, 1974


Acquisition of
Sopyright s,
patents, etc.





issemination of
nfor -a ion.






1ifts and
beq jests.


I l se
47er ~ U eSC rc!


((,) Messing facilities.
(D) Audiovisual equipment, accessories, and supplies for
recreation and training.
(E) Reinlibursement for food, clothing, medicine, and other
supplies furnished by such employees in emergencies for the
temporary relief of distressed persons.
(F) Living and working quarters and facilities'.
(G) Transportation for school-age dependents of employees
to the nearest appropriate educational facilities.
(2) The furnishing of medical treatment under subparagraph (A)
of paragraph (1) and the furnishing of services and supplies under
I)aragraphs (B) and (C) of paragraph (1) shall be at prices reflecting
Ireasonahle value as determIined by the Administrator.
(3) Proceeds from reimbursements under this section shall be
deposited in the Treasury and may be withdrawn by the Adminis-
trator to pay directly the cost of such work or services, to repay or
iake advances to appropriations or funds which do or will bear all
or a part of such cost, or to refund excess sums when necessary; except
that such payments may be credited to a service or working capital
fund otherwise established by law, and used under the law governing
such funds, if the fund is available for use by the Administrator for
performing the work or services for which payment is received.
(d) The Administrator is authorized to acquire any of the follow-
ing described rights if the property acquired thereby is for use in, or
is useful to, the performance of functions vested in him:
(I) Copyrights, patents, and applications for patents, desi(ns,
processes, specifications, and data.
(2) Licenses under copyrights, patents, and applications for
patents.
(3) Releases, before suit is brought, for past infringement of
(atnts or copyrights.
Subjec(t to the provisions of chapter 12 of the Atomic Energy
Act of 1954, as amended (42 U.S.C. 2161-2166). an(l other applicable
law, the Administrator shall disseminate scientific, technical, and
practical information acquired pursuant to this title through infor-
mation programs and other appropriate means, and shall encourage
the dissemination of scientific, technical, and practical information
relating to energy so as to enlarge the fund of such information and
to pro ide that fre e interchange of ideas and criticism which is
essential to scientiic and industrial progress and public understanding.
(f) The Administrator is authorized to accept, hold, administer,
and utilize gifts, and bequests of property, both real and personal, for
the purpose of aiding or facilitating the work of the Administration.
(lifts and bequests of money and proceeds from sales of other prop-
erty received as'gifts or bequests shall be deposited in the Treasury
a1 shall be (disburved upon the or(ler of the Administrator. For the
l,,rl),s of Federal income, estate, andi gift taxes, property accepted
under this section shall be considered as a gift or bequest to the
I United States.
I NTEIm ('0011|1l1INATIoIN

S 0. )'. (a) There is established in the Executive Ofce of the
President an Energy Resources Council. The ('oiuicil shall be (om-
(oied of the Secretary of thIe Interior, the Administrator of the
Federal Energy Administration, the Administrator of the Energy
Research and I)evelol I kent Administration, the Secretary of State,
1 lie i )ireetor, fice of Management and Budget. and such other
ofiiciaS of the e( eral governmentt as the President may definite.
Fl, Prelsident shall designate one of the members of the Council to
s Ir\' as ( I irIan.






33


October 11, 1974


-9-


Pub. Law 93- 438


88 STAT. 1242


(b) Itshall be the duty and function of the Council to-
(1) insure communication and coordination among the agencies
of the Federal Government which have responsibilities for the
development and implementation of energy policy or for the
management of energy resources;
(2) make recommendations to the President and to the Con-
gress for measures to improve the implementation of Federal
energy policies or the management of energy resources with
particular emphasis upon policies and activities involving two
or more Departments or independent agencies; and
(3) advise the President in the preparation of the reorganiza-
tion recommendations required by section 110 of this Act.
(c) The Chairman of the Council may not refuse to testify before
the Congress or any duly authorized committee thereof regarding
the duties of the Council or other matters concerning interagency
coordination of energy policy and activities.
(d) This section shall be effective no later than sixty days after
the enactment of this Act or such earlier date as the President shall
prescribe and publish in the Federal Register, and shall terminate
upon enactment of a permanent department responsible for energy
and natural resources or two years after such effective date, which-
ever shall occur first.
FUTURE REORGANIZATION


SEC. 109. (a) The President shall transmit to the Congress as
promptly as possible, but not later than June 30, 1975, such additional
recommendations as he deems advisable for organization of energy
and related functions in the Federal Government, including, but not
limited to, whether or not there shall be established (1) a Department
of Energy and Natural Resources, (2) an Energy Policy Council,
and (3) a consolidation in whole or in part of regulatory functions
concerning energy.
(b) This report shall replace and serve the purposes of the report
required by section 15(a) (4) of the Federal Energy Administration
Act.
COORDINATION WITH ENVIRONMENTAL EFFORTS
SEC. 110. The Administrator is authorized to establish programs
to utilize research and development performed by other Federal
agencies to minimize the adverse environmental effects of energy
projects. The Administrator of the Environmental Protection Agency,
as well as other affected agencies and departments, shall cooperate
fully with the Administrator in establishing and maintaining such
programs, and in establishing appropriate interagency agreements to
develop cooperative programs and to avoid unnecessary duplication.


Te stimory
Congress.


before


Effective date.
Publication in
Federal Register.


Report to
Congress.
42 USC 5819.





Ante p. 109.


42 USC 5820.


TITLE 11-NUCLEAR REGULATORY COMMISSION

ESTABLISHMENT AND TRANSFERS
SEc. 201. (a) There is established an independent regulatory com- Members and
mission to be known as the Nuclear Regulatory Commission which chairman.
shall be composed of five members, each of whom shall be a citizen 42 Usc 5841.
of the United States. The President shall designate one member






CI4


Pub. Law 93-438
88 STAT. 1243


- 10-


October 11, 1974


Seal.









Submission
of appoint-
ments to
Senate.









Transfer of
AEC functions
and personnel.



Additional
transfers,


of the Commission as Chairman thereof to serve as such during the
pleasure of the President. The Chairman may from time to time
designate any other member of the Commission as Acting Chairman
to act in the place and stead of the Chairman during his absence.
The Chairman (or the Acting Chairman in the absence of the Chair-
man) shall preside at all meetings of the Commission and a quorum
for the transaction of business shall consist of at least three members
present. Each member of the Commission, including the Chairman,
shall have equal responsibility and authority in all decisions and
actions of the Commission, shall have full access to all information
relating to the performance of his duties or responsibilities, and shall
have one vote. Action of the Commission shall be determined by a
majority vote of the members present. The Chairman (or Acting Chair-
man in the absence of the Chairman) shall be the official spokesman of
the Commission in its relations with the Congress, Government
agencies, persons, or the public, and, on behalf of the Commission,
shall see to the faithful execution of the policies and decisions of the
Commission, and shall report thereon to the Commission from time
to time or as the Commission may direct. The Commission shall have
an official seal which shall be judicially noticed.
(b) (1) Members of the Commission shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate.
(2) Appointments of members pursuant to this subsection shall
be made in such a manner that not more than three members of the
Commission shall be members of the same political party.
(c) Each member shall serve for a term of five years, each such
term to commence on July 1, except that of the five members first
appointed to the Commission, one shall serve for one year, one for
two years, one for three years, one for four years, and one for five years,
to be designated by the President at the time of appointment.
(d) Such initial appointments shall be submitted to the Senate
within sixty days of the signing of this Act. Any individual who is
serving as a member of the Atomic Energy Commission at the time
of the enactment of this Act, and who may be appointed by the
President to the Commission, shall be appointed for a term designated
by the President, but which term shall terminate not later than the
end of his present term as a member of the Atomic Energy Commission,
without regard to the requirements of subsection (b) (2) of this
section. Any subsequent appointment of such individuals shall be sub-
ject to the provisions of this section.
(e) Any member of the Commission may be removed by the Presi-
dent for inefficiency, neglect of duty, or malfeasance in office. No
member of the Commission shall engage in any business, vocation, or
employment other than that of serving as a member of the Commission.
(f) There are hereby transferred to the Commission all the licensing
and related regulatory functions of the Atomic Energy Commission,
the Chairman and members of the Commission, the GFneral Counsel,
and other officers and components of the Commission-which func-
tions officers, components, and personnel are excepted from the transfer
to the Administrator by section 1 (c) of this Act.
(g) In addition to other functions and persomiel transferred to the
Commission, there are also transferred tothe Commission-
(1) the functions of the Atomic Safety and Licensing Board
Panel and the Atomic Safety and Licensing Appeal Board;
(2) such personnel as the Director of the Office of Management
and Budget determines are necessary for exercising responsibili-










October 11, 1974


- 11 -


Pub. -Law 93-438


88 STAT. 1244


ties under section 205, relating to, research, for the purpose of
confirmatory assessment relating to licensing and other regula-
tion under the provisions of the Atomic Energy Act of 1954, as
amended, and of this Act.

LICENSING AND RELATED REGULATORY FUNCTIONS RESPECTING SELECTED
ADMINISTRATION FACILITIES
SEC. 202. Notwithstanding the exclusions provided for in section
110 a. or any other provisions of the Atomic Energy Act of 1954, as
amended (42 U.S.C. 2140(a)), the Nuclear Regulatory Commission
shall, except as otherwise specifically provided by section 110 b. of the
Atomic Energy Act of 1954, as amended (42 U.S.C. 2140(b)), or
other law, have licensing and related regulatory authority pursuant
to chapters 6, 7, 8, and 10 of the Atomic Energy Act of 1954, as
amended, as to the following facilities of the Administration:
(1) Demonstration Liquid Metal Fast Breeder reactors when
operated as part of the power generation facilities of an electric
utility system, or when operated in any other manner for the pur-
pose of demonstrating the suitability for commercial applica-
tion of such a reactor.
(2) Other demonstration nuclear reactors-except those in
existence on the effective date of this Act--when operated as part
of the power generation facilities of an electric utility system, or
when operated in any other manner for the purpose of demon-
strating the suitability for commercial application of such a
reactor.
(3) Facilities used primarily for the receipt and storage of
high-level radioactive wastes resulting from activities licensed
under such Act.
(4) Retrievable Surface Storage Facilities and other facilities
authorized for the express purpose of subsequent long-term
storage of high-level radioactive waste generated by the Admin-
istration, which are not used for, or are part of, research and
development activities.
OFFICE OF NUCLEAR REACTOR REGULATION
SEC. 203. (a) There is hereby established in the Commission an
Office of Nuclear Reactor Regulation under the direction of a Director
of Nuclear Reactor Regulation, who shall be appointed by the Com-
mission, who may report directly to the Commission, as provided in
section 209, and who shall serve at the pleasure of and be removable
by the Commission.
(b) Subject to the provisions of this Act, the Director of Nuclear
Reactor Regulation shall perform such functions as the Commission
shall delegate including:
(1) Principal licensing and regulation involving all facilities.
and materials licensed under the Atomic Energy Act of 1954, as
amended, associated with the construction and operation of
nuclear reactors licensed under the Atomic Energy Act of 1954,
as amended;
(2) Review the safety and safeguards of all such facilities,
materials, and activities, and such review functions shall include,
but not be limited to--


42 USC 2011
note.


42 USC 5842.




42 USC 2071-
2112, 2131-
2140.


Establishment.
42 USC 5843.
Director.



Funct ions.


42 USC 2011
note.


74-110 0 76 6







36


88 S- AT. 1245


Pub. Law 93-438


- 12 -


October 11, 1974


(A) monitoring, testing and recommending upgrading
of systems designed to prevent substantial health or safety
hazards; and
(B) evaluating methods of transporting special nuclear
and other nuclear materials and of transporting and storing
high-level radioactive wastes to prevent radiation hazards
to employees and the general public.
(3) Recommend research necessary for the discharge of the
functions of the Commission.
(c) Nothing in this section shall be construed to limit in any way
the functions of the Administration relating to the safe operation of
all facilities resulting from all activities within the jurisdiction of
the Administration pursuant to this Act.

OFFICE OF NUCLEAR MATERIAL SAFETY AND SAFEGUARDS


Lstat>lishment.
42 ~SL 5844.
I Lr~cior,


F wictions.


42 2Q11
I

















i ir~


SE.C. "204. (a) There is hereby established in the Commission an
Office of Nuclear Material Safety and Safeguards under the direction
of a Director of Nuclear Material Safety and Safeguards, who shall
he appointed by the Commission, who may report directly to the Com-
mission as provided in section 209, and who shall serve at the pleasure
of and be removable by the Commission.
(b) Subject to the provisions of this Act, the Director of Nuclear
Material Safety and Safeguards shall perform such functions as the
Conunission shall delegate including:
(1) Principal licensing and regulation involving all facilities
and materials, lice-sed under the Atomic EnergyAct of 1954, as
aIIMended, associated vith the processing, transport, and handling
of nuclear .materials, including the provision and maintenance
of safeguards against threats, thea, and sabotage of such
licensed facilities, and materials.
(2) Review safety and safeguards of all such facilities and
materials licensed under the Atomic Energy Act of 1954, as
amIended, and such review shall include, but not be limited to--
(A) monitoring, testing, and recommending upgrading of
internal account ing systems for special nuclear and other
nuclear materials hcensed under the Atomic Energy Act of
1954, asamiended;
(B) developing, in consultation and coordination with the
Administration, contingency plans for dealing with threats,
thefts, and sabotage relating to special nuclear materials,
high-level radioactive wastes and nuclear facilities resulting
from all. activities licensed under the Atomic Energy Act of
1954, as amended;
(C) assessing the need for, and the feasibility of, estab-
l ishing a security, agency within the office for the performance
of the safeguards functions, and a report with recommenda-
tions on this matter shall be prepared within one year of
the effective date of this Act and promptly transmitted to
the Congress by the Conimission.
(:,) Recommending research to enable the Commission to
more effe-tivcly perform i tsfunctions.
(c) NothingI in this section shall be construed to limit in any
way the funct ios of the Admninistration relating to the safeguarding
Of spIcial nuclear materials, high-level radioactive wastes and nuclear










October 11, 1974


- 13-


Pub. Law 93-438


facilities resulting from all activities within the jurisdiction of the
Administration pursuant to this Act.
OFFICE OF NUCLEAR REGULATORY RESEARCH


SEC. 205. (a) There is hereby established in the Commission an
Office of Nuclear Regulatory Research under the direction of a Director
of Nuclear Regulatory Research, who shall be appointed by the Com-
mission, who may report directly to the Commission as provided in
section 209, and who shall serve at the pleasure of and be removable
by the Commission.
(b) Subject to the provisions of this Act, the Director of Nuclear
Regulatory Research shall perform such functions as the Commission
shall delegate including:
(1) Developing recommendations for research deemed neces-
sary for performance by the Commission of its licensing and
related regulatory, functions.
(2) Engaging in or contracting for research which the Com-
mesion deems necessary for the performance of its licensing and
related regulatory functions.
(c) The Administrator of the Administration and the head of
every other Federal agency shall-
(1) cooperate with respect to the establishment of priorities
for the furnishing of such research services as requested by the
Commission for the conduct of its functions;
(2) furnish to the Commission, on a reimbursable basis,
through their own facilities or by contract or other arrangement,
such research services as the Commission deems necessary and
requests for the performance of its functions; and
(3) consult and cooperate with the Commission on research
and development matters of mutual interest and provide such
information and physical access to its facilities as will assist
the Commission in acquiring the expertise necessary to perform its
licensing and related regulatory functions.
(d) Nothing in subsections (a) and (b) of this section or section
201 of this Act shall be construed to limit in any way the functions
of the Administration relating to the safety of activities within the
jurisdiction of the Administration.
(e) Each Federal agency, subject to the provisions of existing law,
shall cooperate with the Commission and provide such information
and research services, on a reimbursable basis, as it may have or be
reasonably able to acquire.


88 STAT, 1246


Establishment.
42 Usc 5845.
Director.



Functions.







Cooperation of
Federal agencies.














Information and
research ser-
vices.


NONCOMPLIANCE


Szc. 206. (a) Any individual director, or responsible officer of a 42 Usc 5846.
fim constructing, owning, operating, or supplying the components
of any facility or activity which is licensed or otherwise regulated
pursuant to the Atomic Energy Act of 1954 as amended, or pursuant to 42 USC 2011
this Act, who obtains information reasonably indicating that such note.
facility or activity or basic components supplied to such facility or
activit-
(1) fails to comply with the Atomic Energy Act of 1954, as
amended, or any applicable rule, regulation, order, or license of
the Commission relating to substantial safety hazards, or
(2) contains a defect which could create a substantial safety
hazard, as defined by regulations which the Commission shall
promulgate,










Pub. Law 93-438 14 October 11, 1974
88 STAT. 1247
shall immediately notify the Commission of such failure to comply,
or of such defect, unless such person has actual knowledge that the
(ommission has been adequately informed of such defect or failure
to omply.
enaity. (b) Any person who kniowingly and consciously fails to provide
the notice required by subsection (a) of this section shall be subject
to a civil penalty in an amount equal to the amount provided by
42 'sC 2282. section 234 of the Atomic Energy Act of 1954, as amended.
osti o (C) Tile requirements of this section shall be prominently posted
requirements. on the lrenises of aniy facility licensed or otherwise regulated
42 2sc 211 pursuant to the Atotir Energy Act of 1954, as amended.
n1ote. (d) The ('ommission is authorized to conduct such reasonable
c'norcement. inspections and other enforcement activities as needed to insure
('ompliance with the provisions of this section.

NUCLEAR ENERGY CENTER SITE SURVEY
42 USC 5847. SF4 E. 207. (a) (1) The Commission is authorized and directed to
make or cause to he made under its direction, a national survey, which
shall include consideration of each of the existing or future electric
reliability reg ions., or other appropriate regional areas, to locate and
identify )osible nuclear energy center sites. This survey shall be
Federal-State- conducted in cooperation with other interested Federal, State, and
locl cooper'a- local agencies, and the views of interested persons, including electric
ion. utilities, citizens' groups, and others, shall be solicited and considered.
$olicitation (2) For purposes of this section, the term "nuclear energy center
of riews, site" means any site, including a site not restricted to land, large
definition, enough to support utility operations or other elements of the total
nuclear fuel cycle, or both including, if appropriate, nuclear fuel
rel wocesing facilities, imclear fuel fabrication plants, retrievable
nuclear waste storage facilities, and unranium enrichment facilities.
(3) The survey shall include-
(a) a regional evaluation of natural resources, including land,
air, and water resources, available for use in connection with
nuclear energy enter sites; estimates of future electric power
requirements that can be served by each nuclear energy renter
site; an assessment of the economic impact of each nuclear energy
siqt; and consideration of any other relevant factors, including
hut not limited to )pulat ion distribution, proximity to electric
load (centers an1d to (tHier elements of the fuel cycle, transmission
line rights-of-way, and the availability of other fuel resources;
()) an evaluation of the environmental impact likely to result
from construction and operation of such nuclear energy centers,
including an evaluation whether such nuclear energy centers will
resuIlt in greater or lesser environmental impact than separate
siting of the reactors and or fuel cycle facilities; and
(c) consideration of the use of federally onTe rty mnd
other property designated for public use, but exchiS national
parks, national forests, national wideres areas, and national his-
toric mnonumen~t.
,, rongre (4) A report of the results of the survey shall ba published and
r c*l trunsmitted to the Congress and the Council on Environmental Qual-
rormertal it not later tian one year frm the (late of the enactment of this
Y P Act and shall be made available to the public, and shall be updated
4' ul i from time to time thereafter as the Commissimn, in its dis action,
dems advisable. The report shall include the Coinmission's evaluation
of the results of the survey and any conclusions and recommendations,
including recommendations for legislation, which the Commission
1my haVe cncerning the feasibility and practicality of locating
miticear power reactors and/or otlier elenients of the nuclear fuel cycle






39


October 11, 1974


- 15 -


Pub. Law 93-438
88 STAT. 1248


on nuclear energy center sites. The Commission is authorized to adopt
policies which will encourage the location of nuclear power reactors
and related fuel cycle facilities on nuclear energy center sites insofar
as practicable.
ABNORMAL OCCURRENCE REPORTS
SEC. 208. The Commission shall submit to the Congress each quarter Reports to
a report listing for that period any abnormal occurrences at or asso- Congress.
ciated with any facility which is licensed or otherwise regulated pur- 42 Usc 5848.
suant to the Atomic Energy Act of 1954 as amended, or pursuant to 42 Usc 2011
this Act. For the purposes of this section an abnormal occurrence is an note.
unscheduled incident or event which the Commission determines is
significant from the standpoint of public health or safety. Nothing in
the preceding sentence shall limit the authority of a court to review
the determination of the Commission. Each such report shall
contain-
(1) the date and place of each occurrence;
(2) the nature and probable consequence of each occurrence;
(3) the cause or causes of each; and
(4) any action taken to prevent reoccurrence;
the Commission shall also provide as wide dissemination to the public Public dissemi-
of the information specified in clauses (1) and (2) of this section as nation of
reasonably possible within fifteen days of its receiving information of information.
each abnormal occurrence and shall provide as wide dissemination to
the public as reasonably possible of the information specified in clauses
(3) and (4) as soon as such information becomes available to it.


OTHER OFFICERS


SEc. 209. (a) The Commission shall appoint an Executive Director
for Operations, who shall serve at the pleasure of and be removable
by the Commission.
(b) The Executive Director shall perform such functions as the
Commission may direct, except that the Executive Director shall not
limit the authority of the director of any component organization pro-
vided in this Act to communicate with or report directly to the Com-
mission when such director of a component organization deems it
necessary to carry out his responsibilities.
(c) There shall be in the Commission not more than five additional
officers appointed by the Commission. The positions of such officers
shall be considered career positions and be subject to subsection 161 d.
of the Atomic Energy Act.
TITLE III-MISCELLANEOUS AND TRANSITIONAL
PROVISIONS

TRANSIONAL PROVISIONS
SEC. 301. (a) Except as otherwise provided in this Act, whenever
all of the functions or programs of an agency, or other body, or any
component thereof, affected by this Act, have been transferred from
that agency, or other body, or any component thereof by this Act, the
agency, or other body, or component thereof shall lapse. If an agency,
or other body, or any component thereof, lapses pursuant to the pre-
ceding sentence, each position and office therein which was expressly
authorized by law, or the incumbent of which was authorized to
receive compensation at the rate prescribed for an office r position
at level11, 111, IV, or V of taepEecutive Schedule (5 U.S.C.
5313-5316), shall lapse.


Executive
Director.
42 USC 5849.
Functions.




Other officers.
42 USC 2201.


Lapses of agen-
cies and posi-
tions.
42 USC 5871.






40


88 STAT. 1249


Pub. Law 93-438


- 16 -


October 11, 1974


Savings clauses.


(b) All orders, determinations, rules, regulations, permits, con-
tracts, certificates, licenses, and privileges-
(1) which have been issued, made, granted, or allowed to
become effective by the President, any Federal department or
agency or official thereof, or by a court of competent jurisdiction,
in the performance of functions which are transferred under
this Act, and
(2) which are in effect at the time this Act takes effect,
shall continue in effect according to their terms until modified, ter-
minated, superseded, set aside, or revoked by the President, the
Administrator, the Commission, or other authorized officials, a court
of competent jurisdiction, or by operation of law.
(c) The provisions of this Act shall not affect any proceeding
pending, at the time this section takes effect, before the Atomic Energy
Commission or any department or agency (or component thereof)
functions of which are transferred by this Act; but such proceedings,
to the extent that they relate to functions so transferred, shall be
continued. Orders shall be issued in such proceedings, appeals shall
be taken therefrom, and payments shall be made pursuant to such
orders, as if this Act had not been enacted; and order issued in a
such proceedings shall continue in effect until modified, terminate
superseded, or revoked by a duly authorized official, by a court of
competent jurisdiction, or by operation of law. Nothing in this sub-
section shall be deemed to prohibit the discontinuance or modification
of any such proceeding under the same terms and conditions and to
the same extent that such proceeding could have been discontinued if
this Act had not been enacted.
(d) Except as provided in subsection (f)-
(1) the provisions of this Act shall not affect suits commenced
prior to the date this Act takes effect, and
(2) in all such suits proceedings shall be had, a appeals taken,
and judgments rendered, in the same manner and effect as if
this Act had not been enacted.
(e) No suit, action, or other proceeding commenced by or against
any officer in his official capacity as an officer of any department or
agency, functions of which are transferred by this Act, shall abate
by reason of the enactment of this Act. No cause of action by or
against any department or agency, functions of which are transferred
by this Act, or by or against any officer thereof in his official capacity
shall abate by reason of the enactment of this Act. Causes of actions,
suits, actions, or other proceedings may be asserted by or against the
United States or such official as may be appropriate and, in any
litigation pending when this section takes effect, the court may at
any tie, on its own motion or that of any party, enter any order
which will give effect to the provisions of this sect ion.
(f) If, before the date on which this Act takes effect, any depart-
mient or ageIcy or officer thereof in his official capacity, is a party
to a suit, and under this Act any function of such department, agency,
or officer is transferred to the Administrator or Commission, or any
other official, then such suit shall be continued as if this Act had not
been enacted, with the Administrator or Commission, or other official,
as the case may be, substituted.
(g) Final orders and actions of any official or component in the
performance of functions transferred by this Act shall be subject
to judicial review to the same extent and in the same manner as if
such orders or actions had been made or taken by the officer, depart-
ment, agency, or instrumentality in the performance of such functions
immediately preceding the effective date of this Act. Any sttutory
requirementstrlating to notices, hearings, action upon the record,
or adm11inistrative review that apply to any function transferred by










October 11, 1974


- 17 -


Pub. Law 93-438


88 STAT. 1250


this Act shall apply to the performance of those functions by the
Administrator or Commission, or any officer or component.
(h) With respect to any function transferred by this Act and
performed after the effective date of this Act, reference in any other
law to any department or agency, or any officer or office, the functions
of which are so transferred, shall be deemed to refer to the Administra-
tion, the Administrator or Commission, or other office or official in
which this Act vests such functions.
(i) Nothing contained in this Act shall be construed to limit, curtail,
abolish, or terminate any function of the President which he had
immediately before the effective date of this Act; or to limit, curtail,
abolish, or terminate his authority to perform such function; or to
limit, curtail, abolish, or terminate his authority to delegate, redelegate,
or terminate any delegation of functions.
(j) Any reference in this Act to any provision of law shall be
deemed to include, as appropriate, references thereto as now or here-
after amended or supplemented.
(k) Except as may be otherwise expressly provided in this Act,
all functions expressly conferred by this Act shall be in addition to
and not in substitution for functions existing immediately before the
effective date of this Act and transferred by this Act.

TRANSFER OF PERSONAL AN'D OTHER MATTERS


SEC. 302. (a) Except as provided in the next sentence, the personnel
employed in connection with, and the personnel positions, assets.
liabilities, contracts, property, records, and unexpended balances of
appropriations, authorizations, allocations, and other funds employed,
held, usedarising from, available to or to be made available in con-
nection with the functions and programs transferred by this Act, are,
subject to section 202 of the Budget and Accounting Procedures Act
of 1950 (31 U.S.C. 581c), correspondingly transferred for appro-
priate allocation. Personnel positions expressly created by law, per-
sonnel occupying those positions on the effective date of this Act, and
personnel authorized to receive compensation at the rate prescribed
for offices and positions at levels II, III, IV, or V of the Executive
Schedule (5 U.S.C. 5313-5316) on the effective date of this Act shall
be subject to the provisions of subsection (c) of this section and
section 301 of this Act.
(b) Except as provided in subsection (c). transfer of nontemporary
personnel pursuant to this Act shall not cause any such employee to be
separated or reduced in grade or compensation for one year after
such transfer.
(c) Any person who, on the effective date of this Act, held a position
compensated in accordance with the Executive Schedule prescribed
in chapter 53 of title 5 of the United States Code, and who, without
a break in service, is appointed in the Administration to a position
having duties comparable to those performed immediately preceding
his appointment shall continue to be compensated in his new position
at not less than the rate provided for his previous position.


42 USC 5872.


INCIDENTAL DISPOSiONS


SEC. 303. The Director of the Office of Management and Budget is
authorized to make such additional incidental dispositions of person-
nel, personnel positions, assets, liabilities, contracts, property, records,
and unexpended balances of appropriations, authorizations, alloca-
tions, and other funds held, used, arising from, available to or to be


42 USC 5873.






42


88 STAT. 1251


Pub. Law 93-438


- 18-


October 11, 1974


made available in connection with functions transferred by this Act, as
he may deem necessary or appropriate to accomplish the intent and
purpose of this Act.
DEFINITIONS


42 USC 5874.


SEc. 304. As used in this Act-
(1) any reference to "function" or "functions" shall be deemed
to include references to duty, obligation, power, authority, re-
sponsibility, right, privilege, and activity, or the plural thereof,
as the case may be; and
(2) any reference to "perform" or "performance", when used
in relation to functions, shall be deemed to include the exercise of
power, authority, rights, and privileges.


AUTHORIZATION OF APPROPRIATIONS


42 USC 5875.


SEC. 305. (a) Except as otherwise provided by law, appropriations
made under this Act shall be subject to annual authorization.
(b) Authorization of appropriations to the Commission shall re-
flect the need for effective licensing and other regulation of the
nuclear power industry in relation to the growth of such industry.


COMPTROLLER GENERAL AUDIT


42 USC 5876.
42 USC 2206.


Ante


pp. 1234,


Report to
Congress.


Reports to the
president and
Congress.
42 UIS 5877.
Administration
activities and
progress.


Feasibility of
tran-sferring
military
application
functions.


SEC. 306. (a) Section 166. "Comptroller General Audit" of the
Atomic Energy Act of 1954, as amended, shall be deemed to be ap-
plicable, respectively, to the nuclear and nonnuclear activities under
title I and to the activities under title II.
(b) The Comptroller General of the United States shall audit,
review, and evaluate the implementation of the provisions of title
II of this Act by the Nuclear Safety and Licen Commission
not later than sixty months after the effective date of this Act, the
Comptroller General shall prepare and submit to the Congress a
report on his audit, which shall contain, but not be limited to-
(1) an evaluation of the effectiveness of the licensing and
related regulatory activities of the Commission and the opera-
tions of the Office of Nuclear Safety Research and the Bureau
of Nuclear Materials Security;
(2) an evaluation of the effect of such Commission activities
on the efficiency, effectiveness, and safety with which the activities
licensed under the Atomic Energy Act of 1954, as amended, are
carried out;
(3) recommendations concerning any legislation he deems
necessary, and the reasons therefor, for improving the imple-
mentation of title 11.
REPORTS
SFC. 307. (a) The Administrator shall, as soon as practicable after
the end of each fiscal year, make a report to the President for sub-
mission to the Con on the activities of the Administration dur-
ing the preceding scal year. Such report shall include a statement
of the short-range and long-range goals, priorities, and plans of the
Administration together with an a ent of the progress made
toward the attainment of those objectives and toward the more effec-
tive and efficient management of the Administration and the coordi-
nation of its functions.
(b) During the first year of operation of the Administration, the
Administrator, in collaboration with the Secretary of Defense, shall
conduct a thorough review of the desirability and feasibility of trans-







43


October 11, 1974


- 19 -


Pub. Law 93-438


88 STAT. 1252


ferring to the Department of Defense or other Federal agencies the
functions of the Administrator respecting military application and
restricted data, and within one year after the Administrator first
takes office the Administrator shall make a report to the President,
for submission to the Congress, setting forth his comprehensive analy-
sis, the principal alternatives, and the specific recommendations of
the Administrator and the Secretary of Defense.
(c) The Commission shall, as soon as practicable after the end of
each fiscal year, make a report to the President for submission to
the Congress on the activities of the Commission during the preced-
ing fiscal year. Such report shall include a clear statement of the
short-range and long-range goals, priorities, and plans of the Com-
mission as they relate to the benefits, costs, and risks of commercial
nuclear power. Such report shall also include a clear description of
the Commission's activities and findings in the following areas-
(1) insuring the safe design of nuclear powerplants and other
licensed facilities;
(2) investigating abnormal occurrences and defects in nuclear
powerplants and other licensed facilities;
(3) safeguarding special nuclear materials at all stages of the
nuclear fuel cycle;
(4) investigating suspected, attempted, or actual thefts of spe-
cial nuclear materials in the licensed sector and developing con-
tingency plans for dealing with such incidents;
(5) insuring the safe, permanent disposal of high-level radio-
active wastes through the licensing of nuclear activities and
facilities;
(6) protecting the public against the hazards of low-level
radioactive emissions from licensed nuclear activities and
facilities.
INFORMATION TO COMMITTEES
SEC. 308. The Administrator shall keep the appropriate congres-
sional committees fully and currently informed with respect to all of
the Administration's activities.
TRANSFER OF FUNDS
SEC. 309. The Administrator, when authorized in an appropriation
Act, may, in any fiscal year, transfer funds from one appropriation
to another within the Administration; except, that no appropria-
tion shall be either increased or decreased pursuant to this section by
more than 5 per centum of the appropriation for such fiscal year.
CONFORMING AMENDMENTS TO CERTAIN OTHER LAWS
SEC. 310. Subchapter II (relating to Executive Schedule pay rates)
of chapter 53 of title 5, United States Code, is amended as follows:
(1) Section 5313 is amended by striking out "(8) Chairman,
Atomic Energy Commission.i and inserting in lieu thereof "(8)
Chairman, Nuclear Regulatory Commission.", and by adding at
the end thereof the following:
"(22) Administrator of-Energy Research and Development
Adinistration.".
(2) Section 5314 is amended byr striking out "(42) Members,
Atomic Energy Commission." and inserting in lieu thereof "(42)
Members, Nuclear Regulatory Commission.", and by adding at
the end thereof the following:
"(60) Deputy Administrator, Energy Research and Develop-
ment Aldministiation.".


Commission
activities and
findings.


42 USC 5878.


42 USC 5879.







44


88 STAT. 1253


Pub. Law 93-438


- 20-


October 11. 1974


(3) Section 5315 is amended by striking out paragraph (50),
and by adding at the end thereof the following:
"(100) A-sistant Administraturs, Energy es-earch and Devel-
opment Administratlion (6).
"(101) Director of Nuclear Reactor Regulation, Nuclear
Regulatory Commission.
"(102) Director of Nuclear Material Safety and Safeguards,
Nuclear Regulatory Commission.
-(103) Director of Nuclear Regulatory Research, Nuclear
Regulatory Commission.
"(104) Executive Director for Operations, Nuclear Regulatory
Commission."
(4) Section 5316 is amended by striking out paragraphs (29).
(62), (69), and (102), by striking out "(81) General Counsel of
the Atomic Energy Commission," and inserting in lieu thereof
"(81) General Counsel of the Nuclear Regulatory Commission.",
and by adding at the end thereof the following:
"(134) General Counsel, Energy Research and Development
Administration.
"(135) Additional officers, Energy Research and Developient
Administration (8).
"(136) Additional officers, Nuclear Regulatory Commission
(5).".
SEPARABILITY


42 -SC 5801
note.


SEC. 311. If any provision of this Act, or the application thereof
to any person or circumstance, is held invalid, the remainder of this
Act, and the application of such provision to other persons or
circumstances, shall not be affected thereby.


EFFECTIVE DATE AND INTERIM APPOINT3M-TS


42 USC 5801
'ublioatlon in
Federal
Register,


SEC. 312. (a)dThis Act shall take effect one hundred and twenty
(lays after the date of its enactment, or on such earlier date as the
President may prescribe and publishin the Federal Register; except
that any of the officers provided for in title I of this Act may e
nominated and appointed, as provided by this Act, at any time after
the date of enactment of this Act. Funds available to any department
or agency (or any official or component thereof), any functions of
which are transferred to the Adninistrator and the Comission by
this Act' may, with the approval of the President, be used to pay the
compensation and expenses of any officer appointed pursuant to this
subsection until such time as funds for that purpose are otherwise
available.
(k) In the event that any officer rquiredl by this Act to be appointed
by and with the advice mid roisent of the Seiate shall not have entered
11upoll office on the effective date of this Act, the President may designate
any officer, whose appointment was required to be made b1 )ad with
the advice and consent of the Senate and who was such an officer
immediately prior to the effective date of this Act, to act in such
office until the office is tilled as provided in this Act. While so act-
ing, such persons shall receive compensation at the rates provided by
this Act for the respective offices in which they act.








45


October 11, 1974


- 21 -


Pub. Law 93-438


88 STAT. 1254
TITLE IV-SEX DISCRIINATION


SEX DISCRIMINATION PROHIBITED


SEc. 401. No person shall on the ground of sex be excluded from
participation in, be denied a license under, be denied the benefits of,
orbe subjected to discrimination under any program oi activity carried
on or receiving Federal assistance under any title of this Act. This
provision will be enforced through agency provisions and rules similar
to those already established, with respect to racial and other dis-
crimination, under title VI of the Civil Rights Act of 1964. However,
this remedy is not exclusive and will not prejudice or cut off any other
legal remedies available to a discriminatee.
Approved October 11, 1974.


42 USC 5891.






42 USC 2000d.


LEGISLATIVE HI STORY:


HOUSE REPORTS: No. 93-707 (Comm. on Government Operations) and
No. 93-1445 (Comm. of Conference).
SENATE REPORT No. 93-980 accompanying S. 2744 (Comm. on Government
Operations).
CONGRESSIONAL RECORD:
Vol. 119 (1973): Dec. 19, considered and passed House.
Vol. 120 (1974): Aug. 15, considered and passed Senate,
amended, in lieu of S. 2744.
Oct. 9, House agreed to conference report.
Oct. 10, Senate agreed to conference report.
WEEKLY COMPILATION OF PRFSIDENTIAL DOCUMENTS:
Vol. 10, No. 41 (1974): Oct. 11, Presidential statement*
























APPENDIX II
Federal Nonnuclear Energy Research and Development Act of
1974
(Public Law 93-577)










49



Public Law 93-577
93rd Congress, S. 1283
December 31, 1974



To establish a national program for research and development in nonnuclear
energy sources.


Be it enacted by the Senate and House of IRepiesentatives of the
United States of America in Congress assembled,
SiHORT TITLE
SECTION 1. This Act may be cited as the "Federal Nonnticlear Energy
Research and Development Act of 1974".

STATEMENT OF FINDINGS
SEc. 2. The Congress hereby finds that-
(a) The Nation is suffering from a shortage of environmentally
acceptable forms of energy.
(b) Compounding this energy shortage is our past and present fail-
ure to formulate a comprehensive and aggressive research and devel-
opment program designed to make available to American consumers
our large domestic energy reserves including fossil fuels, nuclear fuels,
geothermal resources, solar energy, and other forms of energy. This
failure is partially because the unconventional energy technologies
have not been judged to be economically competitive with traditional
energy technologies.
(c) The urgency of the Nation's energy challenge will require com-
mitments similar to those undertaken in the Manhattan and Apollo
projects; it will require that the Nation undertake a research, develop-
ment, and demonstration program in nonnuclear energy technologies
with a total Federal investment which may reach or exceed
$20,000,000,000 over the next decade.
(d) In undertaking such program, full advantage must be taken
of the existing technical and managerial expertise in the various
energy fields within Federal agencies and particularly in the private
sector.
(e) The Nation's future energy needs can be met if a national com-
mitment is made now to dedicate the necessary financial resources, to
enlist our scientific and technological capabilities, and to accord the
proper priority to developing new nonnuclear energy options to serve
national needs, conserve vital resources, and protect the environment.


Federal Non-
nuclear Energy
Research and
Development
Act of 1974.
42 USC 5901
note.
88 STAT. 1878
88 STAT. 1879
42 USC 5901.


STATEMENT OF POLICY
SEc. 3. (a) It is the policy of the Congress to develop on an urgent 42 us 5902.
basis the technological capabilities to support the broadest range of
energy policy options through conservation and use of domestic
resources by socially and environmentally acceptable means.
(b) (1) The Congress declares the purpose of this Act to be to estab-
lish and vigorously conduct a comprehensive, national program of
basic and applied research and development, including but not limited
to demonstrations of practical applications, of all potentially bene-
ficial energy sources and utilization technologies, within the Energy
Research and Development Administration.
(2) In carrying out this program, the Administrator of the Energy
Research and Development Administration (hereinafter in this Act
referred to as the "Administrator") shall be governed by the terms of
this Act and other applicable provisions of law with respect to all non-
nuclear aspects of Teresearch, development, and demonstration pro-







50


Pub. Law 93-577


-2-


December 31, 1974


I -~;~
- :~ao


.p.
Ante D.1431.


41 2'


7-


gram; and the policies and provisioiis of the Atomic Energy Act of
1954 (42 U.S.C. 2011 et seq.), and other provisions of law shall con-
tinue to apply to the nuclear research, development, and demonstration
program.
(3) In implementing and conducting the research, development, and
demonstration prograMs pursuant to this Act, the Administrator shall
incorporate programs in specific nonnuclear technologies previously
enacted into law, including those established by the Solar Heating and
Cooling Act of 1974 (Public Law 93-409), the Geothermal Energy
Research, Development, and Demonstration Act of 1974 (Public Law
93 410), and the Solar Energy Research, Development, and Demon-
stration Act of 1974 (Public Law 93-473).

DUTIES AND AUTHORITIES OF TilE ADMINISTRATOR
S:c. 4. The (',d inilstrator shall-
(a) review the current status of nonnuclear energy resources
and current nonnuclear energy research and development activi-
ties, including research and development being conducted by Fed-
eral and non-Federal entities;
(b) fornllate and carry out a comprehensive Federal nonnu-
clear energy research, development, and demonstration program
which will expeditiously advance the policies established by this
Act and other relevant legislation establishing programs in
specific energy technologies;
(c) utilize the funds authorized pursuant to this Act to advance
energy research and development by initiating and maintaining,
through fund transfers, grants, or contracts, energy research,
development and demnonst ration programs or activities utilizing
the facilities, capabilities, expertise, and experience of Federal
agencies, natioMa1 laboratories, universities, nonprofit organiza-
tions, industrial entities, and other non-Federal entities which are
appropriate to each type of research, development, and demon-
stration activity;
(d) establish procedures for periodic consultation with repre-
scntatiyes of science, industry, environmental organizations, con-
suMer0s, and other groups who ha\e sjpecial expertise in thme areas
of energy research, levelol)Ient, and technology; and
(e) initiate 1)rograns to design, construct, and operate energy
facilities of sufficient size to dlemonstrate the technical and eco-
nonic "t"feasibiit of utilizing various forms of nonnuclear energy.

GOVERNING PRINCIPLES
SEc. 5. (a) The ()ongress authorizes an( directs that the comlpre-
hnsive programi n research, development, and demonstration
re ,qired by this A t shall be designed and executed according to the
fol low iing pri' l e1)(S:
(1) Energy oser at1io 1 shall 1be a lrimIry considerationi in
the design and im ilementation of the Federal nonnuclear energy
p ogram. For the purpose. s of this Act, energy conservation
Iil(at iboh immproveinent in eiienV Of nergy production and
use ai d ret(It (11 III en.rgv w astl'.
(2) The en uiommuntal aunt social conwques of a proposed
1IrograllI shall 1e analyzed and considered in evaluating its
potential.
(3) A uy lg 41tim for the develoim wi( of a techuoogy w1i1ch
may require significant con~mnIltive u s of wateu' after the tech-
nioloI gy has reached the stage of coinm mecial application shall










Pub. Law 93-577


include thorough consideration of the impacts of such technology
and use on water resources pursuant to the provisions of section 13.
(4) Heavy emphasis shall be given to those technologies which
utilize renewable or essentially inexhaustible energy sources.
(5) The potential for production of net energy by the proposed
technology at the stage of commercial application shall be ana-
lyzed and considered in evaluating proposals.
(b) The Congress further directs that the execution of the com-
prehensive research, development, and demonstration program shall
conform to the following principles:
(1) Research and development of nonnuclear energy sources
shall be pursued in such a way as to facilitate the commercial
availability of adequate supplies of energy to all regions of the
United States.
(2) In determining the appropriateness of Federal involvement
in any particular research and development undertaking, the
Administrator shall give consideration to the extent to which the
proposed undertaking satisfies criteria including, but not limited
to, the following:
(A) The urgency of public need for the potential results
of the research, development, or demonstration effort is high,
and it is unlikely that similar results would be achieved in a
timely manner in the absence of Federal assistance.
(B) The potential opportunities for non-Federal interests
to recapture the investment in the undertaking through the
normal commercial utilization of proprietary knowledge
appear inadequate to encourage timely results.
(C) The extent of the problems treated and the objectives
sought by the undertaking are national or widespread in
their significance.
(D) There are limited opportunities to induce non-Federal
support of the undertaking through regulatory actions, end
use controls, tax and price incentives, public educatioH., or
other alternatives to direct Federal financial assistance.
(E) The degree of risk of loss of investment inherent in the
research is high, and the availability or risk capital to the
non-Federal entities which might' otherwise engage in
the field of the research is inadequate for the timely develop-
ment of the technology.
(F) The magnitude of the investment appears to exceed
the financial capabilities of potential non-Federal partici-
pants in the research to support effective efforts.

COMPIIEIIENSIVE PLANNING ANI) PROGRAMEIING


SEc. 6. (a) Pursuant to the authority and directions of this Act and
the Energy Reorganization Act of f974 (Public Law 93-438), the
Administrator shall transmit to the Congress, on or before June 30,
1975, a comprehensive Il)an for energy research, developaieit, and
demonstration. This plan shall be appropriately revised ammally as
provided in section 15(a). Such plan shall be designed to achieve-
(1) solutions to immediate and short-term (to the early 1980's)
energy supply system and associated environmental l)roblerns;
(2) solutions to middle-term (the early 1980's to 2000) energ-y
supply system and associated environmental problems; and
(3) solutions to long-term (beyond 2000) energy suipplv system
and associated envi ronmental problems.
(b) (1) Based on the comprehensive energy research, development,
and demonstration plan developed under subsection (a), the Adminis-


Plan, trans-
mittal to
C ongre s s.
42 USC 5905.
Ante; p. 1233.






Prograrr, trans-
mittal to
Congre ss.


December 31, 1974


-3 -


88 STAT, 1881







52


Pub. Law 93-577 4 December 31, 1974
88 STAT. 1882
trator shall develop and transmit to the Congress, on or before June 30,
1975, a comprehensive nonnuclear energy research, development, and
demonstration program to implement the nonnuclear research, devel-
opment, and demonstration aspects of the comprehensive plan.
(2) This program shall be designed to achieve solutions to the
energy supply and associated environmental problems in the imme-
diate and short-term (to the early 1980's), middle-term (the early
1980's to 2000), and long-term (beyond 2000) time intervals. In
formulating the nonnuclear aspects of this program, the Administrator
shall evaluate the economic, environmental, and technological merits
of each aspect of the program.
(3) The Administrator shall assign program elements and activities
in specific nonnuclear energy technologies to the short-term, middle-
term, and long-term time intervals, and shall present full and complete
justification for these assignments and the degree of emphasis for
each. These program elements and activities shall include, but not be
limited to, research, development, and demonstrations designed-
(A) to advance energy conservation technologies, including
but not limited to-
(i) productive use of waste, including garbage, sewage,
agricultural wastes, and industrial waste heat;
(ii) reuse and recycling of materials and consumer
products;
(iii) improvements ini automobile design for increased effi-
ciency and lowered emissions, including investigation of the
full range of alternatives to the internal combustion engine
and systems of efficient public transportation; and
(iv) advanced urban and architectural design to promote
efficient energy use in the residential and commercial sec-
tors, improvements in home design and insulation technol-
ogies, small thermal storage units and increased efficiency
in electrical appliances and lighting fixtures;
(B) to accelerate the commercial demonstration of technologies
for producing low-sulfur fuels suitable for boiler use;
(C)to demonstrate Improved methods for the generation, stor-
age, and transmiisson of electrical energy through (i) advances
in gas turbine technologies, combined power cycles, the use of low
British thermal unit gas and, if practicable magnetohydrody-
imamics; (ii) storage systems to allow mor elfcient load follow-
ing, including the use of inert ial energy storage systems; and
(iii) inprovenent in cryogenic transmission methodss:
(D) to accele rate t lie conImerci al demonstration of technologies
for producing substitutes for natural gas, including coal gasifica-
tion: Iroided, That the Administrator shall invite and con-
sider proposals from potential participants based upon Federal
assistance and participation in the form of a joint Federal-indus-
try corporation, and recommendations pursuant to this clause
shall he accompanied by a report on the viability of using this
form of Federalassistance or participation;
(E) to accelerate the commercial demonstration of technologi(s
for producing syncrude and liquid petroleum products from coal:
Prodvd'ed, Tlat the Administrator shall invite and consider pro-
posals from potential participants I)ased upon Federal assistance
and pa-ticipation through guaranteed prices or purchase of the
products. and recommendations I)uSuanit to this clause shall be
accompanied by a report on the viability of using this form of
Federal assistance or participation;
(F) in accordance with the program authorized by the Geo-
thermal Energy Research, )vel opnent, and I)emonstration Act











December 31, 1974


of 1974 (Public Law 93-410), to accelerate the commercial dem-
onstration of geothermal energy technologies;
(G) to demonstrate the production of syncrude from oil shale
by all promising technologies including in situ technologies;
(H) to demonstrate new and improved methods for the extrac-
tion of petroleum resources, including secondary and tertiary
recovery of crude oil;
(I) to demonstrate the economics and commercial viability of
solar energy for residential and commercial energy supply appli-
cations in accordance with the program authorized by the Solar
Heating and Cooling Act of 1974 (Public Law 93-409) ;
(J) to accelerate the commercial demonstration of environ-
mental control systems for energy technologies developed pur-
suant to this Act;
(K) to investigate the technical and economic feasibility of
tidal power for supplying electrical energy;
(L) to commercially demonstrate advanced solar energy tech-
nologies in accordance with the Solar Research, Development, and
Demonstration Act of 1974 (Public Law 93-473);
(M) to determine the economics and commercial viability of
the production of synthetic fuels such as hydrogen and methanol;
(N) to commercially demonstrate the use of fuel cells for
central station electric power generation;
(0) to determine the economics and commercial viability of
in situ coal gasification;
(P) to improve techniques for the management of existing
energy systems by means of quality control; application of sys-
tems analysis, communications, and computer techniques; and
public information with the objective of improving the reliability
and efficiency of energy supplies and encourage the conservation
of energy resources; and
(Q) to improve methods for the prevention and cleanup of
marine oil spills.


88 STAT. 1883
Ante; p. 1079.







Ante p. 1069.






Ante, p. 1431.


FORMS OF FEDERAL ASSISTANCE


SFC. 7. (a) In carrying out the objectives of this Act, the Ad-
ministrator may utilize various forms of Federal assistance and par-
ticipation which may include but are not limited to-
(1) joint Federal-industry experimental, demonstration, or
commercial corporations consistent with the provisions of sub-
section (b) of this section;
(2) contractual arrangements with non-Federal participants
including corporations, consortia, universities, governmental
entities and nonprofit institutions;
(3) contracts for the construction and operation of federally
owned facilities;
(4) Federal purchases or guaranteed price of the products
of demonstration plants or activities consistent with the provi-
sions of subsection (c) of the section;
(5) Federal loans to non-Federal entities conducting demon-
strations of new technologies; and
(6) incentives, including financial awards, to individual inven-
tors, such incentives to be designed to encourage the participation
of a large number of such inventors.
(b) Joint Federal-industry corporations proposed for congres-
sional authorization pursuant to this Act shall be subject to the pro-
visions of section 9 of this Act and shall conform to the following
guidelines except as otherwise authorized by Congress:


42 USC 5906.















Joint Federal-
industry, cor-
porations,
guide lines.


-5


Pub. Law 93-577







54


Pub. Law 93-577 6 December 31, 1974

(1) Each such corporation may design, construct, operate, and
ma int ai n one or more experimental, demonstration, or commercial-
size facilities, or other operations which will ascertain the chni-
cal, environmental, and economic feasibility of a particular energy
technology. In carrying out this function, the corporation shall be
empowered, either directly or by contract, to utilize commercially
a\'ailable technologies, perform tests, or design, construct, and
operate pilot plants, as may be necessary for the design of the
full-scale facility.
(2) Each corporation shall have-
(A) a Board of nine directors consisting of individuals
who are citizens of the United States, of whom one shall be
elected annually by the Board to serve as Chairman. The
Board shall be empowered to adopt and amend bylaws. Five
members of the Board shall be appointed by the President of
the U-nited States, by and with the advice and consent of the
Senate and four members of the Board shall be appointed by
the Iresident on the basis of recommendations received by
iiimi from any non-Federal entity or entities entering into
contractual arrangement s to participate in the corporation;
(B) a President and such other officers and employees as
may he named and appointed by the Board (with the rates of
compensation of all officers and employees being fixed by the
Board) ; and
(C) the usual powers conferred upon corporations by the
laws of the I)istrict of Columbia.
('3) An appropriate time interval, not to exceed 12 years, shall
be established for the term of Federal participation in the corpo-
ration, at the expiration of which the Board of Directors shall
take such action as may be necessary to dissolve the corporation
or otherwise tern minute Federal participation and financial inter-
ests. In carrying out such dissolution, the Board of Directors shall
dis ,ose of all physical facilities of the corporation in such manner
and subject to such terms and con(litions as the Board determines
are in the public interest and consistent with existing law; and a
share of the appraised value of the corporate assets proportional
to the Federal participation in the corporation, including the
proceeds from the disposition of such facilities, on the date of its
dissolution, after satisfaction of all its legal obligations, shall be
nade available to the United States and del)osited in the Treasury
of the United States as miscellaneous irceil)ts. All patent rights
of the corporation shall, on such (late of dissolution, be vested inl
the Adinnistrator Proided, That Federal participation may
be terminatedprior to the time established in the authorizing Act
IponI recomniejIdat ion of the Board of Directois.
(4) Any commercially valuable product produced by demon-
stration facilities shall be disposed of in such manner and under
such terms and conditions as the corporation shall prescribe. All
revenues received by the corporation from the sale of such IoIucts
shall be available to the corporation for use by it in defraying
expenses incurrett in ( connection with carrying out its functions to
which this Act applies.
(5) The estimated Federal share of the construction, operation,
and maintenance cost over the life of each corporation shall be
determined in orler to facilitate a single congreSSMnal authoriza-
tion of the full amount at the time of establishment of the
corporation.
(0) The Federal Share of the cost of each such corporation shall
reflect (A) the tecmical and economic risk of the venture, (B) the






55


December 31, 1974


-7-


Pub. Law 93-577
88 STAT. 1885


probability of any financial return to the non-Federal participants
arising from the venture, (C) the financial capability of the poten-
tial non-Federal participants, and (D) such other factors as the
Administrator may set forth in proposing the corporation: Pro-
vided, That in no instance shall the Federal share exceed 90 per
centum of the cost.
(7) (A) Prior to the establishment of any joint Federal-industry
corporation pursuant to this Act, the Administrator shall submit
to the Speaker of the House of Representatives and the President
pro tempore of the Senate, and to the appropriate committees of
the House of Representatives and the Senate a report setting forth
in detail the consistency of the establishment of the corporation
with the principles and directives set forth in section 5 and this
section, and the proposed purpose and planned activities of the
corporation.
(B) No such corporation shall be established unless previously
authorized by specific legislation enacted by the Congress.
(c) Competitive systems of price supports proposed for congres-
sional authorization pursuant to this Act shall conform to the follow-
ing guidelines:
(1) The Administrator shall determine the types and capacities
of the desired full-scale, commercial-size'facility or other
operation which would demonstrate the technical, environmental,
and economic feasibility of a particular nonnuclear energy
technology.
(2) The Administrator may award planning grants for the
purpose of financing a study of the full cycle economic and envi-
ronmental costs associated with the demonstration facility selected
pursuant to paragraph (1) of this subsection. Such planning
grants may be awarded to Federal and non-Federal entities
including, but not limited to, industrial entities, universities, and
nonprofit organizations. Such planning grants may also be used
by the grantee to prepare a detailed and comprehensive bid to con-
stiruct the demonstration facility.
(3) Following the completion of the studies pursuant to the
planning grants awarded under paragraph (2) of this subsection
regarding each such potential price supported demonstration
facility for which the Administrator intends to request congres-
sional authorization, he shall invite bids from all interested parties
to determine the minimum amount of Federal price support
needed to construct the demonstration facility. The Adminis-
trator may designate one or more competing entities, each to con-
struct one commercial demonstration facility. Such designation
shall be made on the basis of those entities, (A) commitment to
construct the demonstration facility at the minimum level of
Federal price supports, (B) detailed plan of environmental pro-
tection, and (C) proposed design and operation of the demon-
stration facility.
(4) The construction plans and actual construction of the
demonstration facility, together with all related facilities, shall be
monitored by the Environmental Protection Agency. If additional
environmental requirements are imposed by the Administrator
after the designation of the successful bidders and if such alddi-
tional environmental requirements result in additional costs, the
Administrator is authorized to renegotiate the support price to
cover such additional costs.
(5) The estimated amount of the Federal price support for a
demonstration facility's product over the life of such facility shall


Report to
Speaker of the
House, Presi-
dent pro tern-
pore, and
congressional
committees.




Price support
systems,
guidelines.







56


Pub. Law 93-577


-8-


December 31, 1974


88 STAT. 1886


42 USC 5907.


































eg ;a-tong,


be determined by the Administrator to facilitate a single con-
gressional authorization of the full amount of such support at the
time of the designation of the successful bidders.
(6) No price su pport program shall be implemented unless pre-
viously authorized by specific legislation enacted by the Congress.
(d) Nothing in this section shall preclude Federal participation in,
and support for, joint university-industry nonnuclear energy research
efforts.
DEM ON STILVrIoNs

Stx:. 8. (a) The Administrator is authorized to-
(1) identify opportunities to accelerate the commercial appli-
cations of new energy technologies, and provide Federal assist-
ance for or partZicipation III deion st ration projects (including
pilot plants demonstrating technological advances and field dem-
onstrations of new methods and procedures, and demonstrations
of prototype cominme rcial applications for the exploration, devel-
opn ment, Product ion, transportation, conversion, and utilization of
energy resources) ; and
(2) enter into cooperative agreements with non-Federal enti-
ties to demonstrate the technical feasibility and economic poten-
tia of energy technologies on a prototpe or full-scale basis.
(b) In reviewing potential projects, the Administrator shall con-
sider criteria including but not limited to-
(1) the anticipated, resea rch, development, and application
objecti\es to be achieved by the activities or facilities proposed;
(2) the economic, environmental, and societal significance
which a successful demonstration may have for the national fuels
and energy system;
(3) the relationship of the proposal to the criteria of priority
set forth in section 5(b) (2)
(4) the availability of non-Federal participants to construct
and operate the facilities or p perform the activities associated with
the proposal and to contribute to the financing of the proposal;
(5) the total estimated cost including the Feeral investment
and the probable time Schedule;
(6) the proposed participants and the proposed financial con-
tributions of the Federal Government and of the non-Federal
plarticipanlts; and
(7) the proposed coj)eratiye arrangenient, agrements among
the pa-ticipanlts, and formIi of management of the activities.
(c) (1) A financial award under this section may be made only to
the extent of the Federal share of the estimated total design and con-
struction costs, plus ol)eration and maint enance costs.
(2) For the purposes of this Act the non-Federal share may be in
any form, ifIclt(iig, but flo, limited to, lands or interests therein
needed for the project or personal property or services, the value of
which shall be determined by the Adiistrator.
(d) (1) The Administrator shall, within six months of enactilent
of this Act; IroImIulgate regulatioIs establishing prce(ures for
subiislon of proposals to the Energy' Ree arch and I)evelopmnent
Administration for tIe purp es of this Act. Such regulations shall
establish a pr(edure for Selection of proposals which-
(A) provides that projects will be carried out under such coildi-
tions and varying circumstances is will asist in sOlving energy
extract ion, t ransport at ion, co'nversion, conservation, aMnd ein lusc
I )robleImms of various areas and regions, under rpesentative geo-
gical, geographic, and enVii'Oiiiioleltal coIL dit ions; amid
(B) provides time schediules for suibmissioi of, and action on,
proplos requests for the piurpcoses of in1plemeinting the goals and
objectives o this Act.







57


December 31, 1974


-9-


Pub. Law 93-577
88 STAT. 1887


(2) Such regulations also shall specify the types and form of the
information, data, and support documentation that are to be contained
in proposals for each form of Federal assistance or participation set
forth in subsection 7(a) : Provided, That such proposals to the extent
possible shall include, but not be limited to-
(A) specification of the technology;
(B) description of prior pilot plant operating experience with
the technology;
(C) preliminary design of the demonstration plant;
(D) time tables containing proposed construction and operation
plans;
(E) budget-type estimates of construction and operating costs;
(F) description and proof of title to land for proposed site,
natural resources, electricity and water supply and logistical
information related to access to raw materials to construct and
operate the plant and to dispose of salable products produced
from the plant;
(G) analysis of the environmental impact of the proposed plant
and plans for disposal of wastes resulting from the operation of the
plant;
(H) plans for commercial use of the technology if the demon-
stration is successful;
(I) plans for continued use of the plant if the demonstration
is successful; and
(J) plans for dismantling of the plant if the demonstration is
unsuccessful or otherwise abandoned.
(3) The Administrator shall from time to time review and, as
appropriate, modify and repromulgate regulations issued pursuant to
this section.
(e) If the estimate of the Federal investment with respect to con-
struction costs of any demonstration project proposed to be established
under this section exceeds $50,000,000, no amount may be appropriated
for such project except as specifically authorized by legislation here-
after enacted by the Congress.
(f) If the total estimated amount of the Federal contribution to
the construction cost of a demonstration project does not exceed
$50,000,000, the Administrator is authorized to proceed with the nego-
tiation of agreements and implementation of the proposal subject to
the availability of funds under the authorization of appropriations
pursuant to section 16: Provided, That if such Federal contribution to
the construction cost is estimated to exceed $25,000,000 the Adminis-
trator shall provide a full and comprehensive report on the proposed
demonstration project to the appropriate committees of the Congress
and no funds may be expended for any agreement under the authority
granted by this section prior to the expiration of sixty calendar days
(not including any day on which either House of Congress is not in
session because of an adjournment of more than three calendar days
to a day certain) from the date on which the Administrator's report on
the proposed project is received by the Congress. Such reports shall
contain an analysis of the extent to which the proposed demonstration
satisfies the criteria specified in subsection (b) of this section.


Report to
congress ional
committees.


PATENT POLICY


SEc. 9. (a) Whenever any invention is made or conceived in the
course of or under any contract of the Administration, other than
nuclear energy research, development, and demonstration pursuant to
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) and the
Administrator determines that-
(1) the person who made the invention was employed or
assigned to perform research, development, or demonstration


42 USC 5908.











88 STAT. 1888


December 31, 1974


Report.




Waiver of
rights.


W, 1.14-49


work and the invention is related to the work he was employed or
assigned to Perform, or that it was within the scope of his employ-
ment duties, whether or not it was made during working hours,
or with a contribution by the Government of the use of Govern-
ment facilities, equipment, materials, allocated funds, information
proprietary to the Governnent. or services of Government employ-
ees during working hours; OF
(2) the person who made the invention was not employed or
assigned to perform research, development, or demonstration
work, but the invention is nevertheless related to the contract or
to the work or duties 1e was employed or assigned to perform, and
was mizade diurintg working hours, or with a contribution from the
Government of the sort referred to in lause (1).
title to such invention shall vest in the United States, and if patents
on such invention are issued they shall be issued to the United States,
unless in particular circumstances the Administrator waives all or any
part of the rights of the 'United States to such invention in conformity"
with the provisions of this section.
(b) Each contract entered into by the Administration with any per-
son shall contain effective provisions under which such person shall
furnish promptly to the Administration a written report containing
full and complete technical information concerning any invention,
discover, improvement, or innovation which may be made in the
course o or under such contract.
(c) Under such regulations in conformity with the provisions of
this section as the Administrator shall prescribe, the Administrator
may waive all or any part of the rights of the United States under this
section with respect to any invention or class of inventions made or
which may be made by any person or class of persons in the course
of or under any contract of the Administration if he determines that
the intere-sts of the United States and the general public will best be
served by such waiver. The Administration shall maintain a publicly
available, periodically updated record of waiver determinations. In
making such determinations, the Administrator shall have the follow-
ing objectives:
(1) Making the i)enefits of the energy research, development,
and (demonstration program widely available to the public in the
shortest practicable time.
(2) P'romoting the commercial utilization of such inventions.
(3) Encouraging participation by private persons in the
A dminist rat ion's energy l esea rch. develol)ment, and demonst ra-
tion I)rOgrailn.
t4) 1Fosteriln competition and l)reventing undue market con-
centration or the creation or maintenance of other situations
inconsistent with the antitrust laws.
(d) In determining whether a waiver to the contractor at the time
of contracting will best serve the interests of the United States and
the general public, the Administrator shall specifically include as
conds(lerations -
(1) ihe extent to which the participation of the contractor will
exl)e(Iite the attainment of the purposes of the program;
(2) the extent to which a waiver of all or 0anypart Of such
rights in any or all fields of technology is nleede(I to secure the
lparticilpat ion of the Im rt icula r contractor;
(3) the extent to which the contractor's commercial position
ma, expedite utilization of the research, development, and dem-
onst ration program results:
(4) the extent to which the Governnment has contributed to the
field of technology to he funded under the contract
(5) the purpose and nature of the contract, including the
intended u seof the results developed thereunder:


Pub. Law 93-577


-10 -


I







59


December 31, 1974


- 11 -


Pub. Law 93-577
88 STAT. 1889


(6) the extent to which the contractor has made or will make
substantial investment of financial resources or technology devel-
oped at the contractor's private expense which will directly bene-
fit the work to be performed under the contract;
(7) the extent to which the field of technology to be funded
under the contract has been developed at the contractor's private
expense;
(8) the extent to which the Government intends to further
develop to the point of commercial utilization the results of the
contract effort;
(9) the extent to which the contract objectives are concerned
with the public health, public safety, or public welfare;
(10) the likely effect of the waiver on competition and market
concentration; and
(11) in the case of a nonprofit educational institution, the extent
to which such institution has a technology transfer capability and
program, approved by the Administrator as being consistent with
the applicable policies of this section.
(e) In determining whether a waiver to the contractor or inventor
of rights to an identified invention will best serve the interests of the
United States and the general public, the Administrator shall specif-
ically include as considerations paragraphs (4) through (11) of sub-
section (d) as applied to the invention and-
(1) the extent to which such waiver is a reasonable and neces-
sary incentive to call forth private risk capital for the develop-
ment and commercialization of the invention; and
(2) the extent to which the plans, intentions, and ability of the
contractor or inventor will obtain expeditious commercialization
of such invention.
(f) Whenever title to an invention is vested in the United States,
there may be reserved to the contractor or inventor--
(1) a revocable or irrevocable nonexclusive, paid-up license for
the practice of the invention throughout the world; and
(2) the rights to such invention in any foreign country where
thd United States has elected not to secure patent rights and the
contractor elects to do so, subject to the rights set forth in para-
graphs (2), (3), (6), and (7) of subsection (h):Provided, That
when specifically requested by the Administration and three years
after issuance of such a patent, the contractor shall submit the
report specified in subsection (h) (1) of this section.
(g) (1) Subject to paragraph (2) of this subsection, the Adminis-
trator shall determine and promulgate regulations specifying the
terms and conditions upon which licenses may be granted in any
invention to which title is vested in the United States.
(2) Pursuant to paragraph (1) of this subsection, the Adminis-
trator may grant exclusive or partially exclusive licenses in any inven-
tion only if, after notice and opportunity for hearing, it is determined
that-
(A) the interests of the United States and the general public
will best be served by the proposed license, in view of the appli-
cant's intentions, plans, and ability to bring the invention to the
point of practical or commercial applications;
(B) the desired practical or commercial applications have not
been achieved, or are not likely expeditiously to be achieved,
under any nonexclusive license which has been granted, or which
may be granted, on the invention;
(C) exclusive or partially exclusive licensing is a reasonable
and necessary incentive to call forth risk capital and expenses


Licenses,
regulations.

Hearing.







60


88 STAT. 1890


Pub. Law 93-577


W 12 -


December 31, 1974


Wai ver
terms and
conditions.


to bring the invention to the point of practical or commercial
applications; and
(D) the proposed terms and scope of exclusivity are not sub-
stantially greater than necessary to provide the incentive for
bringing the invention to the point of practical or commercial
applications and to permit the licensee to recoup its costs and a
reasonable profit thereon:
Provided, That, the Administrator shall not grant such exclusive or
partially exclusive license if he determines that the grant of such
license will tend substantially to lessen competition or result in undue
concentration in any section of the country in any line of commerce
to which the technology to be licensed relates. The Administration shall
maintain a publicly available, periodically updated record of deter-
minations to grant such licenses.
(h) Each waiver of rights or grant of an exclusive or partially
exclusive license shall contain such terns and conditions as the Admin-
istrator may determine to be appropriate for the protection of the
interests of the United States and the general public, including provi-
sions for the following:
(1) Periodic written reports at reasonable intervals, and when
specifically requested by the Administration, on the commercial
use that is being made or is intended to be made of the invention.
(2) At least an irrevocable, nonexclusive, paid-up license to
make, use, and sell the invention throughout the world by or on
behalf of the United States (including any Government agency)
and States and domestic municipal governments, unless the
Administrator determines that it would not be in the public
interest to acquire the license for the States and domestic munic-
ipal governments.
(3) The right in the United States to sublicense any foreign
government pursuant to any existing or future treaty or agree-
ment if the Administrator determines it would be in the national
interest to acquire this right.
(4) The reservation in the United States of the rights to the
invention in any country in which the contractor does not file an
application for patent within such time as the Administration
shall determine.
(.5) The right in the Administrator to re(juire tie granting of
a nonexclusive, exclusive, or partially exclusive license to a
responsible applicant or applicants, upon terms reasonable under
the circumstances, (A) to the extent that the invenition is required
for public use by governmental regulations, or (B) as may be
necessary to fulfill health, safety, or energy needs, or (C) for such
other ptUrposes as may be stipulated in tile applicable agreement.
(6) The right in the Administrator to terminate such waiver or
license in whole or in part unless the recipient of the waiver or
license demonstrates to the satisfaction of the Administrator that
he has taken effective steps, or within a reasonable time thereafter
is expected to take such steps, necessary to accomplish sulbstantial
utilization of the invention.
(7) The right in the Administrator, commencing three Year"
after the grant of a license anid four years after a waiver is effec-
tive as to an invenitioni, to require the granting of a nonexclusive
or partially exclusive license to a responsible applicant or
ap plicants, 111)0o ternis reasonable under the circumstances, and in
appropriate circumstances to terminate the waiver or license in
whole or in part, following a hearing ipon notice thereof to the
public, Ulpo a petition by an interested person justifying such
nerg-











December 31, 1974


- 13 -


Pub. Law 93-577


88 STAT. 1891


(A) if the Administrator determines, upon review of such
material as he deems relevant, and after the recipient of the
waiver or license, or other interested person, has had the
opportunity to provide such relevant and material informa-
tion as the Administrator may require, that such waiver or
license has tended substantially to lessen competition or to
result in undue concentration in any section of the country
in any line of commerce to which the technology relates; or
(B) unless the recipient of the waiver or license demon-
strates to the satisfaction of the Administrator at such hear-
ing that he has taken effective steps, or within a reasonable
time thereafter is expected to take such steps, necessary to
accomplish substantial utilization of the invention.
(i) The Administrator shall provide an annual periodic notice to
the public in the Federal Register, or other appropriate publication,
of the right to have a hearing as provided by subsection (h) (7) of this
section, and of the availability of the records of determinations pro-
vided in this section.
(j) The Administrator shall, in granting waivers or licenses, con-
sider the small business status of the applicant.
(k) The Administrator is authorized to take all suitable and neces-
sary steps to protect any invention or discovery to which the United
States holds title, and to require that contractors or persons who
acquire rights to inventions under this section protect such inventions.
(1) The Administration shall be considered a defense agency of the
United States for the purpose of chapter 17 of title 35 of the United
States Code.
(in) As used in this section-
(1) the term "person" means any individual, partnership, cor--
poration, association, institution, or other entity;
(2) the term "contract" means any contract, grant, agreement,
understanding, or other arrangement, which includes research,
development, or demonstration work, and includes any assign-
ment, substitution of parties, or subcontract executed or entered
into thereunder;
(3) the term "made", when used in relation to any invention,
means the conception or first actual reduction to practice of such
invention;
(4) the term "invention" means inventions or discoveries,
whether patented or unpatented; and
(5) the term "contractor" means any l)erson having a contract
with or on behalf of the Administration.
(n) Within twelve months after the date of the enactment of this
Act, the Administrator with the participation of the Attorney Gen-
eral, the Secretary of Commerce, and other officials as the President
may designate, shall submit to the President and the appropriate con-
,4sresional committees a report concerning the applicability of exist ing
patent policies affecting the programs under this Act, along with his
recommendations for amendments or additions to the statutory patent
policy, including his recommendations on mandatory licensing, Which
he deems advisable for carrying out the p'poScs of this Act.


Publication in
Federal Regis-
ter.









35 USC 181.
Def i nitions.













Report, sub-
mittal to
President
and con-
gressional
committees.


RE .%*rTO)NsIIll TO ANTITRUST LAWS


Szc. 10. (a) Nothing in this Act shall be deelmed to convey to any
individual, corporation, or other business organ ization imI unity front
civil or criminal liability, or to create defenses to actions, mi(er the
antitrust laws.
(b) As used in this section, the term "antitrust law" means-


42 USC 5909.


"Antitrust law."







62


88 STAT. 1892


Pub. Law 93-577


- 14-


December 31, 1974


15 USC 58.


42 USC 5910.










Hearings.

Transcript,
availability.
Report to
P'resi~den~t,
Administra-
tor, and
Congress.






42 USC 5911.






proposed
rule. or
order,
tr ns-
mrittal to
Con* ess.


(1) the Act entitled "An Act to protect trade and commerce
against unlawful restraints and monopolies", approved July 2,
1890 (1: U.S.C. 1 et seq.), as amended;
(2) the Act entitled "An Act to supplement existing laws
against unliwful restraints and monopolies, and for other pur-
poses", approved October 15, 1914 (15 U.S.C. 12 et seq.) as
amended;
(3) the Federal Trade Commission Act (15 U.S.C. 41 et seq.),
as amended;
(4) sections 73 and 74 of the Act entitled "An Act to reduce
taxation, to provide revenue for the Government, and for other
purposes", approved August 27, 1894 (15 U.S.C. 8 and 9), as
amended; and
(5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a,
13b, and 21a).

ENVIRONMENTAL EVALUATION N
SEC. 11. (a) The Council on Environmental Quality is authorized
and directed to carry out a continuing analysis of the effect of appli-
cation of nonnuclear energy technologies to evaluate-
(1) the adequacy of attention to energy conservation methods;
and
(2) the adequaic of attention to environmental protection and
the environmental consequences of the application of energy
technologies.
(b) The Council on Environmental Quality, in carrying out the
provisions of this section, may employ consultants or contractors and
may by fund transfer employ the services of other Federal agencies
for the conduct of studies and investigations.
(c) The Council on Environmental Quality shall hold annual public
hearings on the conduct of energy research and development and the
probable environmental consequences of trends in the development
and application of energy technologies. The transcript of the hearings
shall be published and made available to the public.
(d) The Council on Environmental Quality shall make such reports
to the President, the Administrator, and the Congress as it deems
appropriate concerning the conduct of energy research and develop-
mnent. The President as a part of the annual Environmental Policy
Report required by section 201 of the National Environmental Policy
Act of 1969 (42 U.S.C. 4341) shall set forth the findings of the Council
on Environmental Quality concerning tile probable enviromnental
consequences of trends in the development and application of energy
technologies.
ACQUISITION OF ESSENTIAL :MATERIALS

SEc. 12, (a) The President may, by rule or order, require the allo-
cation of, or the performance under contracts or orders (other than
contracts of employment) relating to, supplies of materials and equip-
ment if he finds that-
(1) such supplies are scarce, critical, and essential to carry out
the purposes of this Act; and
(2) such supplies cannot reasonably be obtained without exer-
cising the authority granted by this section.
(b) Tile President shall/transmit any rule or order proposed under
subsection (a) of this section (bearing an identification number) to
each Houseof Congress on the date on which it is proposed. If Such
proposed rule or order is transmitted to the Congress such proposed






63


December 31, 1974


- 15.


Pub. Law 93-577
88 STAT. 1893


rule or order shall take effect at the end of the first period of thirty
calendar days of continuous session of Congress after the date on which
such proposed rule or order is transmitted to it unless, between the
date of transmittal and the end of the thirty day period, either House
passes a resolution stating in substance that such House does not favor
such a proposed rule or order.
WATER RESOURCE EVALUATION
SEC. 13. (a) At the request of the Administrator, the Water
Resources Council shall undertake assessments of water resource
requirements and water supply availability for any nonnuclear energy
technology and any probable combinations of technologies which are
the subject of Federal research and development efforts authorized by
this Act, and the commercial development of which could have signifi-
cant impacts on water resources. In the preparation of its assessment,
the Council shall-
(1) utilize to the maximum extent practicable data on water
supply and demand available in the files of member agencies of
the Council;
(2) collect and compile any additional data it deems necessary
for complete and accurate assessments;
(3) give full consideration to the constraints upon availability
imposed by treaty, compact, court decree, State water laws, and
water rights granted pursuant to State and Federal law;
(4) assess the effects of development of such technology on
water quality;
(5) include estimates of cost associated with production and
management of the required water supply, and the cost of disposal
of waste water generated by the proposed facility or process;
(6) assess the environmental, social, and economic impact of
any change in use of currently utilized water resource that may
be required by the proposed facility or process; and
(7) consult with the Council on Environmental Quality.
(b) For any proposed demonstration project which may involve
a significant impact on water resources, the Administrator shall, as
a precondition of Federal assistance to that project, prepare or have
prepared an assessment of the availability of adequate water resources.
A report on the assessment shall be published in the Federal Register
for public review thirty days prior to the expenditure of Federal
funds on the demonstration.
(c) For any proposed Federal assistance for commercial applica-
tion of energy technologies pursuant to this Act, the Water Resource
Council shall, as a precondition of such Federal assistanceprovide
to the Administrator an assessment of the availability of 'adequate
water resources for such commercial application and an evaluation
of the environmental, social, and economic impacts of the dedication of
water to such uses.
(d) Reports of assessments and evaluations prepared by the Coun-
cil pursuant to subsections (a) and (c) shall be published in the Fed-
eral Register and at least ninety days shall be provided for public
review and comment. Comments received shall accompany the reports
when they are submitted to the Administrator and shall be available
to the public.
(e) The Council shall include a broad survey and analysis of
regional and national water resource availability for energy devel-
opment in the biennial assessment required by section 102 (a) of the
Water Resources Planning Act (42 U.S.C. 1962a-(a)).


42 USC 5912.
























Publication
in Federal
Register.






Publication
in Federal
Register.






64


Pub. Law 93-577


- 16 -


88 STAT. 1894
ENERGY-RELATED INVENTIONS


42 USC 5913.


Regulations.


42 USC 5914,






























Ante, p. 1251.


42 'S- 5915.


December 31, 1974


SFC. 14. The National Bureau of Standards shall give particular
attention to the evaluation of all promising energy-related inventions,
particularly those submitted by individual inventors and small com-
panies for the purpose of obtaining direct grants from the Adminis-
trator. The National Bureau of Standards is authorized to pronmlgate
regulations in the furtherance of this section.
REPORTS TO CONGRESS
SEC. 15. (a) Concurrent with the submission of the President's
annual budget to the Congress, the Administrator shall submit to
the Congress each year-
(1) a report detailing the activities carried out pursuant to
this Act during the preceding fiscal year;
(2) a detailed description of the comprehensive plan for nuclear
and nonnuclear energy research, development, and demonstration
then in effect under section 6(a) ; and
(3) a detailed description of the comprehensive nonnuclear
research, development, and demonstration program then in effect
under section 6(b) including its program elements and activities,
setting forth such modifications in the comprehensive plan referred
to in clause (2) and the comprehensive program referred to ill clause
(3) as may be necessary to revise appropriately such plan and pro-
gram in the light of the activities referred to in clause (1) and any
changes in circumstances which may have occurred since the last
previous report under this subsection.
(b) The description of the comprehensive nonnuclear research,
development, and demonstration program submitted under subsec-
tion (a) (2) shall include a statement setting forth-
(1) the anticipated research, development, and application
objectives to be achieved by the proposed program;
(2) the economic, environmental, and societal significance which
the proposed program may have;
(3) the total estimated cost of individual program items;
(4) the estimated relative financial contributions of the Federal
Government and non-Federal participants in the research and
development program;
(5) the relationship of the proposed program to any Federal
national energy or fuel policies; and
(6) the relationship of any short-term undertakings and expend-
itures to long-range goals.
(c) The reports required by subsections (a) and (b) of this sec-
(ionll Satisfy the reporting requirements of section 307(a) of the
Energy Reorganization Act of 1974 (Iublic Law 93-438) insofar as is
concerned activities, goals, priorities, and plans of the Energy Research
and Develop meant Adiministrat ion pertaininmmg to nonnuclear energy.

A PPOIIAT I ON A UTI IO1 IZATION
SEc. 16. (a) There may be appropriated to the Administrator to
carry out the purposes of this Act such sums as may be authorized in
annual authorization Acts.
(b) Of the amounts appropriated pursuant to subsection (a) of
this Section-
(1) $500,000 annually shall be made available by fund transfer
to the Council on Environmental Quality for the purposes author-
ized by Section 11 ; and







65


December 31, 1974


- 17 -


Pub. Law 93-577
88 STAT. 1895


(2) not to exceed $1,000,000 annually shall be made available by
fund transfer to the Water Resources Council for the purposes
authorized by section 13.
(c) There also may be appropriated to the Administrator by sepa-
rate Acts such amounts as are required for demonstration projects
for which the total Federal contribution to construction costs exceeds
$50,000,000.
Approved December 31, 1974.


LEGISLATIVE HISTORY:

HOUSE REPORTS: No. 93-1157 accompanying H.R. 13565 (Comm. on Interior
and Insular Affairs) and No. 93-1563 (Comm. of
Conference).
SENATE REPORT No. 93-589 (Comm. on Interior and Insular Affairs).
CONGRESSIONAL RECORD:
Vol. 119 (1973): Dec. 5-7, considered and passed Senate.
Vol. 120 (1974): Aug. 22, Sept. 11, considered and passed House,


Dec.
Dec.


amended, in lieu of
H. R. 13565.
16, House agreed to conference report.
17, Senate agreed to conference report.

























AP>PEN\DIX III

Summary of ERDA's Long Range Plan








69


ERDA-48
VOL. 1 OF 2


A National Plan
For Energy Research,
Development & Demonstration:


Creating Energy Choices For
The Future


Volume 1:
The Plan








70




SUMMARY


A serious and continuing energy problem exists
in this country.
hnpo-T-, in the form of pet roleui, letroltim
Iro lIucts and mat ual ga account for 2(1 percent
of the total doIIIntv-ic energy consunIlilptioll. at an
annual cost of over S2,1 billion in 1971.
Thit, hIa vv reliance oil imported energy has
-1ri1,s national secuiritv inll1icat ions. I )epend-
Mice on iuIpIls makes the United States vuhewr-
Ile to unlds irabh external influiices on I.S.
foreign and donltestic policy. Forei ii powen
can threaten life -Wle' anl ecolmilic stability
I \ tai;liIIu tlle supldy of pet roleuiu or effectinu
It rit rarv aINd midden price changes. The quad-
ruli inig of the world price of petroletim in the
pa1't two ha ruted he U.S. economy
aItld th eo1oIme0' of :ill other importing nations.
This Plan recognizes five national policy goals
as a focus for energy policy:
To maintain the security and policy inde-
pendence, of the Nation.
To maintain a strong and healthy economy.
providing adequate eniploynent oppor-
unities. and allowing fiulfilnlment of e'Con-
oniic alura tions ( especially in the less
aflhent parts of the l)opulation).
To provide for future needs so that life
styles remain a matter of choice and are
not limited by the unavailability of energy.
To contribute to world stabilitv through
cooperati\e international efforts in the
energy sphere.
T,) protect and improve the Nation's en-
vironniental quality by assuring that the
pres+rvation oif land. water, and air re-
.ouire&'s is given hligh priority.

The national energy problem is best understood
as one of limited choices today.
The I S. energ-y s-stei currently relies
nio-t on the+ lea-t plentiful doniest ic energy
r4ourlc e., and least on the miiost abundant

1()er 75 perciet of the Nat ion's energy
(c)lL'.liiInptio 1s11 1o se(i on petroellnl aind


natural gas. l)oIestic Supplies of these
col imnodit ies are dwinlling.
Coal, the iost abundant domestic fossil
fuel, provides les, than 21) rent of cur-
rent energyv needs.
Uraniuni. the domestic energy tirce with
the greatest en(eirgy potentia p11ovides
about 2 percentt of the Nation's energy.
Solar energy available to all, but diffu'e,
lIrovides a negligibly snall percentage of
cllrrent needs.

To overcome this problem and to achieve our
National policy goals, the Nation must have the
flexibility of a broad range of energy choices.
It 1is lOt possible to prelict what our Nation's
interests and its people's desired life style will be
ilt the end of this ceenl ilry. Whatever those inter-
ests aild letis ill.e, however. eergy should erve
them. The present situation in which national
policy and social choice are constrained by over
reliance on one form of energy cannot be allowed
I o recIlr.
For these reasons. today's challenge is to cre-
te a wide range of energy options for the future.
The National Plan for energY R.D&I) is desired
precisely] to create those options for future gen-
erat ions.
The Plan has been developed within the con-
text of the president's overall energy policy and

The Plan delineates the innovations in tech-
nologies req uired to over(onle energy lirobles.
If price -tructures. regulations, or incentives
change, iany of the required technologies may
be developed in the private sector in response to
Iiarket deniands and without Federally assisted
Rl)&I).

To generate the necessary options, the Plan Is
designed to facilitate the changeover from depend-
ence on a narrow base of diminishing domestic
resources to reliance on a broader range of less
limited or unlimited alternatives.
The firi technological need is to extend the
life of our oil and galesources. The reappraisal
of the Nation's oil and gas resource just re-







71


leased by the U.S. Geological Survey, and in-
dependently supported by a current study of the
National Academy of Sciences, demonstrates the
need for this step (see Figures 1 and 2).
The implication of the new estimates are that
current rates of oil and gas production by con-
ventional methods will be difficult to maintain,


even with additional Outer Continental Shelf and
Alaskan production. VWithout enhanced recovery,
the estimates indicate that production of domestic
oil will begin to drop rapidly in the mid 1980's,
as will the )roduction of domestic natural gas. It
is unlikely tiat major new energy sources could be
ready by that time.


IN THIS FIGURE, DOMESTIC OIL INCLUDES CRUDE AND NATURAL GAS LIQUIDS


ACTUAL













CUMULATIVE PRODUCTION
THROUGH 1974 =
123 BILLION BARRELS


z
o 5.0-
D
0
04.0-
0.
,.J

z 3.0-
z
-J
"' 2.0-

IL:

o 1.0-
z
0
19
,,,J


II I I -F I T
920 1930 1940 1950 1960 1970 1980
CALENDAR YEAR


PROJECTED "


2020


ie


N-.. WITH
% i::ii~~ii~~i::. = ENHANCED
.: RECOVERY


I ALASKAN
I NORTH
I SLOPE OIL .........
REMAINING RECOVERABLE
AFTER 1974
142 BILLION BARRELS
+40 BILLION BARRELS WITH
I ENHANCED RECOVERY
182 BILLION BARRELS, TOTAL


1990 2000 2010


Figure 1. Projected Domestic Oil Production


30
30 ACTUAL
27t


ANNUAL MARKETED PRODUCTION
(EXCLUDING FLARED, VENTED
AND RE-INJECTED)
N.


CUMULATIVE
PRODUCTION
THROUGH
1974 = 478 TCF


I I


1930


1940 1950 1960 1970
CALENDAR


INCLUDES
NORTH SLC


REMAININ(
AFTER 197
75
+25
1,00


1980
YEAR


30
-PROJECTED 27

::.:::% WITH
,STIMULATION 24
TECHNIQUES u.
-21 LL

-18 c
ALASKAN15u
)PE .--5-,0
-12 Z

G RECOVERABLE _9
4=
O TCF 6 -
0 TCF FROM STIMUATION 3
0 TCF TOTAL
I 1 1
1990 2000 2010 2020


Figure 2. Projected Domestic Natural Gas Production


S-2


II I


18

15

12

9.

6

3"

19:


20


)







72


En,11haned recovery, which requires ome tech-
nological development. will buy uroghly 10 vears
of tine. Th 1, vl eat ara- crucially imoial
to the country becai ise thiey double the tine a il
able. for thl' development of new energy 1ree.
A rcoit hai' ste is to Ia t e oIIIIest i
energy reMuI e's a aIlahle to u. Figure reeI-
It i a te i f re oveaible doI Iest ic r1e- c11 s ,
of c1oi)iilv coisidered fuel. I ii u figure. tile
admoulit of energt i_ shown graphically by aIrea.
vith the lt,ed o IioI- ) indticatin additional
r 4)tirces that nia% becoite aI\aila k, if tIe i(ch -
1ology can b(, de eloped for reeo %er.
IIII I l y. t a at lit i0i1:l 1 :lajor re)I Iources ex1 it\i
I i of which caI r p(resInt c-'11it iallv inexiait-
b uric of nergy f the teclIology to use
itihi cant Ie pIerfeted(. T Chese arV' Io3 1r energy
alud fniioli IIrgy i In both cas the potential is
t-i1afit al. although siificant problems remain
to Ie I lt- e t in their de elolinent. 'heSe so4rce1 .
tot lit I ih nit clear bIIIedtig. IrA)resent thIeI
major an t I Ia'l. for mie tin enIergy neetd (of tlie
future. EI 1 if these e Inologies houIl1 prlOve
ulc esful in -at I isfyIg t t techit ia I econOi ic
ii-lit Uit onal aId eInvirIonm1ental req i renient ftr
ilii len+ientat ion, their major energy siipply con -
T TiI lit l will Occur iI tie twentf\i-trsi centurv.



AVAILABLE ENERGY IN QUADS (1015 BTU)
SHOWN GRAPHICALLY BY AREA.

TOTAL U.S. ENERGY CONSUMPTION IN 1974
WAS 73 QUADS


PORTION C
RECOVERABLE N
WITH ENHANCED 1
RECOVERY C









780K
GAS OIL
1,030
PETROLEUM
1,100


)RE
WIELDINGG
0 TO 25
3ALfTON


* SHALE
5,800


IIN SITU ::i




12,000


COAL
12,000+


There are other potential sources of energy
product ion. many of them limited in one way or
another. A full 1-t of sources is shown in Table
1.


" Coal
* Crops
" Fertile Nuclear


" Fissile Nuclea
" Geothermal
* Hydroelectric
" Natural Gas
" Ocean Heat
Table 1


* Oil
" Oil Shale and Tar Sands
" Sunlight
* Tides
* Waste Heat
* Waste Materials
* Water (fusion and hydrogen)


Windpower
1. Fuels and Energy Sources


This transition to new energy sources must be
made more swiftly than ever before.
'ht' historical perspective of Figure 4 shows
that in the past it has taken some sixty years
from thet point at which a transition to a new
energy re our, was first discernible until that
resource, In turn, reached its peak use and began


1,800
LIGHT
WATER
REACTORS


URANIUM
130,000


Figure 3. Available Energy from Recoverable Domestic Energy Resources


. . +. -.- + +. -.-+ + + + .= . . . .- . . + +. . = +

;. . ... . . .. . .- ..X ,
:: :::::::::::::::::::::::::: .:: .:.:: .:.:: .:: .::.:.::.::::::::. ::. :::::::. ::::
:i~i:!:!:i : . . . . . .: . . .: . . .: . . .: . . . .: :. .



I+X+Z >:+. .- .- .- + .. . .. .. .
N.Z.X+Z.,X,+ZoX,+Z. . . . . .

!i!!iiii iiiiiiii~i~iiiiii~ii . . . . . . . . . . .~iiiiiiiii

::::::::::::::::: ::: .:: .:.:: .:.:: .:.:.:: .:.:: .:.:: .:.:: .:.:: .:.:: .:.:.:: .:.:: .:.:: .: .
I!!~i!!i!!ii~ii. . . . . . ii !!!! I . . . . . .


tr


., _3












SOURCE: HISTORICAL STATISTICS OF THE
UNITED STATES BUREAU OF THE CENSUS;
U. S. BUREAU OF MINES, 1974
100

90 PETROLEUM &
FUEL NATURAL GAS
80 WOOD

70 -N COAL/
/ \ /

60 /
50 /
40 /

30 //-
20 /
10 NUCLEAR
0
1860 1880 1900 1920 1940 1960 1980
CALENDAR YEAR

Figure 4. U.S. Energy Consumption Patterns

to decline relative to other sources. I)oniestic sup-
plies of oil and gas appear to have reached that
sixty-year peak. Their relative shares in the U.S.
energy market are expected to decrease with time.
It is essential, therefore, to plan now for the
transition from oil and gas to new sources to
supply the next energy cycle. The Nation cannot
afford to wait another 60 years to complete the
next transition. Only an aggressive program of
technological development can expedite this
process. It is urgent to begin now.

To accomplish this transition a framework of
national energy technology goals has been estab-
lished.
These goals, shown in Table 2, emphasize not
only the development of technologies related di-
rectly to the supply of energy but also develop-
ment of supporting technologies that focus on:
The crucial importance of reducing energy
waste and increasing the efficiency of en-
ergy use in all sectors of the economy
through application of existing and new
technologies.
The major role of technology in protecting
and enhancing the environment, a concept
which must be fully integrated into all as-
pects of energy production and use.
The necessary supporting structure of basic
research and technical "spin-offs" from


other high technology areas to undergird
and lead to continuing innovation in the
energy technology area.


1. Expand the domestic supply of economically re-
coverable energy producing raw materials
II. Increase the utilization of essentially inexhausti-
ble domestic energy resources
Ill. Efficiently transform fuel resources into more
desirable forms
IV. Increase the efficiency and reliability of the proc-
esses used in the energy conversion and delivery
systems
V. Transform consumption patterns to improve en-
ergy utilization
VI. Increase end-use efficiency
VII. Protect and enhance the general health, safety,
welfare and environment related to energy
VIII. Perform basic and supporting research and tech-
nical services related to energy
Table 2. National Energy R,D&D Goals


All the national energy technology goals must be
pursued together. Concentration on only one or a
few technological avenues is not likely to solve the
energy problem.
A number of strategies have been advanced to
solve the energy problem. The first is to place
primary national emphasis on reduction of energy
waste and inefficiencies to ease supply problems.
The second is to put primary emphasis on the
use of the vast, energy residing in the Nation's
coal and oil shale resources to produce synthetic
fuels that will i substitute directly for diminishing
supplies of oil and gas. The third is to empha-
size the alteration of consumption patterns,
shifting from -eliance on petroleum and gas to
reliance on electricity, which can be provided
from all the domestically abundant energy
solirces.
To derive a fuller perspective, these strategies
need to be contraste(l with views of the future in
which (a) no significant new initiatives are under-
taken, (b) a key technology (such as nuclear
power) is eliminated from consideration, and
(c) some combination of all of the primary re-
sponses is assumed to have a high--even tin-
realistically high-degre of success. ERDA has
examined all six strategies called scenarios in this
report:
Scenario 0 No New Initiatives
Scenario I improved Efficiencies in End-


Scenario I


I se
Synthetics from Coal and Shale


S-4








74


Scenario III Intensive Electrification
Scenario IV Limited Nuclear Power
Scenario V Combination of All Technolo-
gies
Analysis of these scenarios focused on drawing
forth insights on the nature of:
The energy system itself, viewed as a sys-
tem.
The role of technologies within the system.
How the above characteristics change with
time.
It should be emphasized that the scenarios are
not forecasts or predictions. They are illustra-
tions of po ile strategie"p-'aper an(I pencil ex-
periments."
The same demand for energy services was used
as a basis for all scenarios. The demand assumes
continuation of historical trends by us, sector
mo ified to reflect recent price increases. The ap-
propriate technology mix of each scenario. to-
gther with the oil and gnas production estimates
shown in Figures 1 and 2, leads to estimates of
the amounts of imported fuel needed to satisfy
demand. Resiults are shown in Figure 5.
The import levels for the primary Scenrios
I, II and III are unacceptably high in the year
20(H). representing an increase over today's levels
and in onme case an accelerating increase. These
levls reflect, of course, the result of emphasizing



"'50-

0

z 40
U'

a30
z
-J
5 20
U-
o
(n '
cc- 10
0
0~
i-0

-10 a ... a
1975 1980 1985 1990 1
CALENDAR YEAR


only a single set of teclnological approaches to
deal with the energy problem. The analysis sug-
gests that:
All scenarios, except V, are unacceptable
individually: they show increasing im-
ports. That is. only the successful develop-
ment and implementation of a large num-
ber of technologies in a combination of
approaches can make importing fuel a
matter of choice.
Curtailment of any major existing option
(such as nuclear power) places heavy de-
mands on all the remaining options and
precludes an acceptable solution (low level
of imports or no imports).
The target area for R,D&D contribution is
represented by the shaded area in Figure 5,
bounded on the top by the curves for the primary
Scenarios I through III and bounded below by
the extenzive technological success assumed in
Scenario V.
The actual future levels of imports will depend
not only on the technological results within the
above spectrum but also upon:
The actual amount of oil and gas found
and produced in the United States.
The actual life style (demand for services)
cithez chosen for the future or forced upon
the public by a continuing energy supply
problem.


SCENARIOS


No New Initiatives
Improved Efficiencies in End Use
Synthetics from Coal and Shale
Intensive Electrification
Limited Nuclear Power
Combination of All Technologies


Figure 5. Imports of Oil and Gas







75


Near-Term Major Energy Systems


New Sources of Uquids and Gases for the Mid-Term

Inexhaustible" Sources for the Long-Term


Near-Term Efficiency (Conservation) Technologies


Under Used Mid-Term Technologies


Technologies Supporting Intensive Electrification


Technologies Being Explored for the Long-Term


Coal-Direct Utilization in Utility/Industry
Nuclear-Converter Reactors
Oil and Gas-Enhanced Recovery
Gaseous & Liquid Fuels from Coal
Oil Shale
Breeder Reactors
Fusion
Solar Electric
Conservation in Buildings & Consumer Products
Industrial Energy Efficiency
Transportation Efficiency
Waste Materials to Energy
Geothermal
Solar Heating and Cooling
Waste Heat Utilization
Electric Conversion Efficiency
Electric Power Transmission and Distribution
Electric Transport
Energy Storage
Fuels from Biomass
Hydrogen in Energy Systems


Highest
Priority
Supply



H ighest
Priority
f Demand



Other
Important
Technologies


Table 3. National Ranking of RD&D Technologies


Based upon an analysis of scenarios, the status
of the candidate technologies, and the extent of
the resources they would use, a national ranking
of R,D&D technologies has been developed to
identify priorities for emphasis in the Plan.
The ranked list is presented in Table 3.
For the near-term (now to 1985) and beyond.
the priorities are:
To preserve and expand major domestic
energy systems: coal, light water reactors
(the highest nuclear priority), and gas
and oil both from new sources and from
enhanced recovery techniques.
To increase the efficiency of energy used
in all sectors of the economy and to extract
more usable energy from waste materials.
For the mid-term (1985-2000) and beyond.
priorities are:
To accelerate the development of new
processes for production of synthetic fuels
from coal and for extraction of oil from
shale.
To increase the use of under-used fuel
forms, such as geothermal energy, solar
energy for heating and cooling, and extra(--
tion of more usable energy from waste
heat. None of these technologies has a ma-
jor long-term impact, but each can be
quite useful in relieving mid-term short-
ages.
For the long-term (past 2000). priorities are:
To pursue vigorously those candidate
technologies which will permit the use of
essentially inexhaustible resources:


-Nuclear breeders.
--Fusion.
-.Solar electric energy from a variety of
technological options, including wind
power, thermal and photovoltaic ap-
proaches, and use of ocean thermal
gradients.
None of the above three technologies
is assured of large scale application. All
have unique unresolved questions in one
or more areas: technical, economic, en-
vironmental or social. The benefits to be
gained in achieving success in one or
more of these approaches require that
vigorous development efforts proceed
now on all three.
To provide the technologies to use the new
sources of energy which may be distributed
as electricity, hydrogen or other forms
throughout all sectors of the economy.
(As an example, long term efforts are
needed to develop a full range of electric
vehicle capabilities.)
Substantial effort is required now if the sig-
nificant energy contributions defined above are
to become available in the mid- and long-term as
needed.
It shrald be noted that outlays for Federally
supported programs may not necessarily con-
form to the national ranking develope(l here.
This is because many of the technologies will be
developed in the private sector and there are dif-
ferences in the scope of the program effort and
the extent of development required.


S-6


I







76


The above priority ranking and accompanying
Plan itself reflect ERDA's determination that five
major changes are needed in the nature and scope
of the Nation's energy R,D&D program.
The I' changes which must t' made rapidly
and simultaneously and many of which are al-
r1adv reflected Iin the President's program for
1!476. are:
Emphiai on overcominjM th tchnical
problem inhibiting xpacion of high
leve'I rage ex"i ting systern-rtably coal
and light water reactors.
Achieving an expansion requires the
solution of several critical problems in-
volving operational reliability and ac-
ceptable envi rounntal impact.
An immediate focw O otonserr'ation ef-

The-e efforts implement first genera-
tion existing technology, extend this
technology with improved capabilities,
demonstrated its viability and widely
disseminate the results.
The primar- targets are automotive
transportation, buildings and indus-
trial proceed.
Ace Iratioi of cwnmercial capability to
txtru t gma, so and liquid fmws tram coal
and 's hale.
A two-pronged effort is needed to
achieve this objective. Existing tech-
nologies rmus t be implcnented as >011
as possible to gain needed experience
with large scale synthetic fuel prodiuc-
tion. A Synthetic Fuels Co merciali-
Zat ion programI i is now teing de 'elope,
to implenment the Presidents synthetic
fuels goal announced in the 1975 State
of the Union Mesage. Als re~1uirid
is aggre.,ive pursuit of parallel of-
forts, now underway, to (evelo) a
mnre efcient generation of plants with
lower product costs an( less environ-
nintal impact.
nusi of th solar elctrir app roach
amongl t u .rhausti1b resources tf eh-
14oloyol to b) gien he, priority.
The technologIes for producing es-en-
tially inexhaustibh supplies of electric
power from solar energy will be given
priority coni parable to fusion and the
breeder reactor.
Incr#lared attention to undtlr-oed ww
huh lologix th at can 1) rap idly de lopd.
The technologies that are close to im-
plenientat ion and prmiie a significant
imp;t for the :IIid-tveri and beyond


are principally solar heating and cool-
ing and the use of geothermal power.
To attain the national energy goals, it is neces-
sarv not only to demonstrate the technical feasi-
bilivty of new energy systems but to ensure that the
enivirolnieital, health, and safety aspects of these
systems are socially acceptable. This will require
that environmental effects asesiment be initiated
early in the RD&D process and that environmen-
tal and safety controls be developed as an integral
part of energy system design. Ensuring social
acceptability demands vigorous program over-
view and asessment, open reporting of findings
and progress, and frequent public interaction on
the part of the R.D&D establishment.

To assist in the development of the energy
supply technologies assigned priority in the Plan,
supporting technologies are also required.
The Plan considers both broad supporting tech-
nologies (Table 4) and other supporting tech-
nologies (Table .5) which are specifically associa-
ted with the individual fuel cycles for each of the
primary technolo-es. These specific supporting
technologies acquire their importance from the
priority and status of the primary technologies
to which they are attached.


Basic Research
Biomriedical and Environmental Research
Systems Studies
Information Dissemination
Manpower Development
Safety
Table 4. Broad Supporting Technoog%*


Illustrative priority activities for specific sup-
porting technologies are as follows:
More rapid and complete assessment of
domestic uranium resources.
Expansion of coal availability and use


* Exploration and Resource Assessment
" Mining and Beneficiation
" Environmental Control Technology
* Nuclear Safeguards
* Support to the Nuclear Fuel Cycle
* Uranium Enrichment
Fossil Fuel Transportation
* Waste Management
Table 5. Specific Supporting Technoaes




UNIVERS'I y OF FLORIDA


liii 1 ill il 045tl1i it
3 1262 04567 7910


through improved mining and environmen-
tal control technologies.
Increased effort toward understanding bio-
medical and environmental consequences of
waste products generated and dispersed by
fossil energy technologies.
Emphasis on resolution of nuclear safe-
guards issues to strengthen the viability of
the nuclear option.
Increased effort on light water reactor fuel
cycle technology where information and ex-
perience are required to resolve issues of
chemical processing, plutoniumit recycle and
waste management.
Early expansion of U.S. nuclear fuel en-
richment capacity.
Vigorous dissemination to institutional and
public audiences of information on conser,
nation technologies.
Implementation of the National Plan for energy
R,D&D will require coordination and cooperation
among all sectors of the society.
The task of implementing the Plan is national
in scope, involving the Federal Governnient
(other agencies as well as ERI)A). state and local
governments, and the private sector. Necessary
working relationships must be developed in detail.
The guiding principle is that the Federal Govern-
ment will prov-ide overall leadership and will
undertake only those efforts that industry cannot
initiate. As a given technology approaches com-
nmercialization, the role of the private sector will
be paramount. In this role. the private sector
will:
Interact strongly with the Federal (oV-
erinent in developing the economic, tech-
nical, safety. and environmental aspect
of the National Plan for energy R,D&D
Participate in joint progiramuIs/activities to
ensure the significance of Federal activity
and to minimize Federal cost
1 In partnership with tle Federal Go\ern-
ment. define long-range needs, enhance
market potential and transfer information
from the public to private sector
Play the major role (financially and tech-
nically) in large demonstration and near-
commercial projects
Commercialize the technology.
State and local governments and regional
groups reflect regional andi local I)erspectives on
the energy situation. Their participation and in-
volvement in the overall process is extrentely im-
portant. These governmental units will be
involved in questions of environmental control;
in resource extraction, plant siting, and the
revision of construction and hihI ling codes to

S-8


accommodate innovative technologies; and in in-
dustrial regulation. It is ERDA's policy to seek
the views and involvement of the states and locali-
ties to ensure that their interests and concerns are
reflected in the foirtu lat ion of national energy
I)&l) policy.
The National Plan represents the first step in a
continuing planning effort.
The initial planning effort repoled here has
emphasized a diagnosis of the I)l)let; establish-
ment of major national goals: definition of key
priorities: and direction of resources to high
leverage areas.
This planning, however, lust evolve through
contiinuing effort. There is need for (1) a deeper
analysis of key uncertainties to confirm or modify
priorities: (2) a more integrated treatment of the
range of prograins to allow for more extensive
cross-coml)arisons among technoloies: and (3)
a more prevcise definition of programs to maxi-
mize assurance that each program responds to its
greatest opportunities andp produces results direct-
ly in sul)l)ort of national goals. Suh a planning
progression continually modifies programs and
alters direction to take advantage of research
efforts, analysis, experience and shifting circmn-
stances-all of which are functions of time. In-
deed. the legislation establishing ERI)A recog-
nizes these factors by re4 uiring periodic ul)dates
of the Plan-the first being re(qired in January
of 19796. Iullic comment on this initial plan.
together with additional analysis, will be reflected
ill sulbsequent l)lanning products.
National security, the Nation's economy. and
the ability to determine life style are all in peril
today. Substantial assistance from new technol-
ogy is critically needed. but significant results
are not expected before 1985. Major efforts nus-t
be pursue( now because of the time required to
reISCa rch develop. and imhplem ent new energy
technologies.
To ensure maximum flexibility for future en-
ergv systems and to allow for sonic failures in
the developIment process, the Nation's energy
Plan must provide multiple options which, taken
all together. coulh exceed perceived needs.
Accordingly, today's national energy research,
development, and demonstrat ion programs must
Shorten the time for transition to new fuel
forms based on abundant domestic fuel
resolirees.
Avoid overemphasis on single approaches
which tend to foreclose future options.
Open ill) new choices for the future.
The task of creating choices for the future must
be urgently addressed now-an(l with full public
part icipation.


77