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Energy Bill Signing 10/24/92 [OA 8486]
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Energy Bill Signing 10/24/92 [OA 8486]
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Originally Processed With FOIA(s):
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S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Backup Files
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OA/ID Number:
13839
Folder ID Number:
13839-007
Folder Title:
Energy Bill Signing 10/24/92 [OA 8486]
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26
23
2
1
EXECUTIVE OFFICE OF THE PRESIDE
22-Oct-1992 06:13pm
TO:
(See Below)
FROM:
Claire F. Turney
Office of Communications
SUBJECT: Staffed speech
(Ferguson/Grossman)
October 22, 1992
Draft One
ENERGY
PRESIDENTIAL REMARKS: ENERGY BILL SIGNING
OCTOBER 24, 1992
AFTERNOON,
LAEAVETTE, LOUISIANA
MAURICE
Good morning, everyone.
2.20.91
(Acknowledgments)
to Filler Fing
X
X
X
X
X
T
I
X
Almost X two years ago, my Administration proposed a National
3233
Energy Strategy -- a blueprint to make our country safer and more
secure. Our strategy was based on a simple premise: that the
greatest single energy resource America possesses is the wisdom
and enterprise of its citizens.
The last two years have seen much hard work, many hundreds
of hours of hard study and negotiation. Our efforts have now
borne fruit. This morning I will sign the Energy Policy Act of
3183 OMB
1992.
Together with the more than 90 adminištrative initiatives my
Teresu 200
administration was able to undertake on its own, the Energy
Policy Act will/ increase domestic energy production, reduce our
substantially
BOTER over
imperted
reliance on foreign energy sources, promote conservation and
efficiency, and créate American jobs.
And we will accomplish these goals not by resorting to the
failed methods of government control, but by unleashing the
genius of private enterprise.
The Act increases competition in the way electricity is
generated and sold -- reducing the strain on family budgets
across the country. By the year 2010, for example, our reforms
OVER THE NEXT TEN YEARS
Electricity 586-5727
586-6518
#
NES
will save the average American household $150 a year in its
annual electricity bill.
The Act improves licensing procedures for new nuclear power
plants -- guaranteeing that this safe and clean resource helps
meet the energy needs of the next century.
Using the power of the market, the Act encourages the
development and use of clean-burning alternative fuels -- so that
the robust production of energy will go hand-in-hand with a clean
environment.
The Act provides much-needed tax relief for our Nation's
independent oil and gas producers -- allowing them to keep more
of their hard-earned money to reinvest in the production of
domestic fossil fuels. From now on, we must produce more of our
energy here at home, and import less from abroad. Our national
security demands it; future generations deserve it; and now we
can ensure that it will be done.
I spent much of my life in the oil business, building a
company, meeting a payroll. I saw first-hand how government can
help -- and hinder -- the men and women who meet the energy needs
of their fellow Americans. I believe that this Act opens a new
era, in which government acts not as master but as partner and
servant.
My only regret is that I haven't the time to thank all those
who deserve to be thanked for the achievement we celebrate on
this historic day. Let me simply close by saying that because of
Energy Dept to
Laura faxed 700 this mellilo 2 OCT 14 ??
A10 : 58
DRAFT STATEMENT OF PRESIDENT BUSH
ON SIGNING OF ENERGY POLICY ACT OF 1992
It is not often that even a President of the United States
can, without fear of exaggeration, call an occasion "historic".
This is an historic occasion. For today I am signing into law
the National Energy Policy Act of 1992, and thereby placing
America upon a clear path toward a more prosperous, more energy
efficient, more environmentally sensitive, and more economically
secure future.
Soon after I took office I directed my Secretary of Energy,
Admiral James Watkins, to prepare a comprehensive and balanced
National Energy Strategy. I did so because as one who was in the
energy business myself I have always understood and appreciated
the vital importance of energy to our economy and to our daily
lives, and because I knew there were many changes that needed to
be made to government policies and programs if we were to take
full advantage of the tremendous resources our Nation possesses.
Under Admiral Watkins' leadership, the NES was issued in
February 1991, accompanied by proposed legislation to implement
some of its core features. The NES was unique because it
provided a blueprint for our energy future while ensuring that
our environmental and economic goals would also be met. The
legislation which I sent to Congress did more than just deal with
energy. By its fundamental nature it affected the Clean Air Act,
Clean Water Act, Resource Conservation and Recovery Act and
several other of our more complex statutes. The passage of such
a complex bill is remarkable.
I must admit there were times when I doubted that this
legislation--so comprehensive in scope and bold in content--would
make it through the Congress. History was against us. That
history showed that big energy bills were enacted by Congress
only in times of crisis. The Persian Gulf War certainly provided
a sense of urgency to the initial Congressional deliberations on
our legislation. But happily, the war ended quickly in a great
triumph for our United Nations alliance. Less happily, energy
policy faded from the headlines. Our efforts to get Congress to
act, however, did not fade. We persevered and with the support
of leading members of the energy committees in the Congress,
sound energy legislation was finally enacted by overwhelming
margins in both Houses.
There is so much that is good for America in this new law.
Competition in the way electricity is generated and sold will be
increased, thus lowering prices while at the same time ensuring
adequate supplies. Reforms to government licensing of new
nuclear power plants will help to preserve this option--which now
supplies one-fifth of our electric power--for the future. Our
near total dependence upon petroleum to fuel cars and trucks will
begin to disappear because of the provisions in the bill to
encourage the development and use of clean burning alternative
fuels. Research and development on a host of exciting new energy
technologies--including advanced clean coal, natural gas,
renewables and conservation--will be greatly increased.
America's independent oil and natural gas producers will be
allowed to keep more of their hard earned money for re-investing
in the production of domestic fossil fuels, so we will produce
more here and import less from abroad. Finally, this bill will
upgrade post-secondary math and science education for low-income
and first generation college students so they will have a better
opportunity to contribute to their country and thereby enrich
their lives as well as ours.
These are some of the highlights of this legislation. The
chief highlight, however, is this: in all of these great and
worthy endeavors, government will serve as the partner of private
enterprise, not as its master. This approach will allow our
Nation to reap the benefits of the greatest single energy
resource we possess--the entrepreneurial spirit of free men and
women.
This new energy policy now takes its rightful place
alongside our initiatives in clean air, trade, and other areas
that together form a solid basis for my Agenda for American
Renewal. This agenda will enable us to double the growth of our
economy over the next decade, and achieve the world's first
trillion dollar economy.
I do not have the time here to thank all of the people who
deserve to be thanked and recognized for the achievement we are
celebrating today. I will simply close by saying that because of
their hard work, faith and devotion over the past three years
Americans will be able to live in a stronger country and a
cleaner environment, and enjoy a brighter future.
Thank you.
PREVIOUS RHETORIC ON THE ENERGY BILL
28 Weekly Comp. Pres. Doc. 1090
Q. Mr. President, I agree that we are leaders in the environment. But if
reelected, what incentives would you devise to aid our country in reducing our
overconsumption of the energy resources?
The President. We've got an energy bill before the Congress right now that
does that, encourages alternative use of fuels. We have sound environmental
practice on offshore. We've got - in this bill, I mean, all - from lighting
--- kinds of new light bulbs that really save an enormous amount of energy to
alternative uses of fuel. We've got a good program. It's hung up in the United
States Congress right now. But I would press forward on that energy bill and
try to move forward.
Let me say this as a word of caution, though. We are more and more dependent
on foreign oil. It was about a year and a half ago when the Persian Gulf
situation got fired up, that it was predicted oil would go to $ 80 a barrel
overseas. And I don't know if you saw what Saddam Hussein said the other day.
He said, the biggest mistake he made is when he first moved into Kuwait that he
didn't move into Saudi Arabia. You want to project something that would just
shoot these gasoline prices right off the scoreboard, try that one on.
TM
TM
LEXIS:NEXIS®
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Services of Mead Data Central, Inc.
PAGE
2
28 Weekly Comp. Pres. Doc. 1090
So what we've got to do, it seems to me, is to try to become less dependent
on foreign oil for security reasons, and that means alternate sources. I may
get into a big fight here, but I believe that nuclear power can be used safely,
and it's clean-burning --- I believe clean. I believe that we ought to
facilitate that rather than turn our back on that.
But it does concern me that we're becoming more dependent on foreign oil, and
yet, I think the answer is conservation and alternative sources. That's in our
energy bill.
Q. Mr. President - and I assume that you are -- what do you think about the
oil that we've got to send out for incineration?
The President. What you've got to send out for incineration? Help me, I'm
not a technologist, but what I see here I like in terms - refining it.
Q. Well, the oil that fails our test that we do on the field, we send that
out for incineration to Kansas, to a facility, the RCRA facility that burns it
off.
The President. I'm sorry, I hate to say this. Yes, I'm President, but I
don't know enough about the technology to know whether that's good or bad.
28 Weekly Comp. Pres. Doc. 968
Energy Bill
The President. And I agree. I mean, I think farmers are not only
environmentalists but conservationists. I think that's very, very important. I
think we have to do it.
Incidentally, I would like to make a pitch for our energy bill that passed
the Congress the other day, which does have some good, sound conservation in it,
but also it balances out the need for this country to grow. I don't want to
shift the subject away from your question, but in all these fields - and this
gets back to this young man's question - in all these fields there's a question
of philosophy on a lot of this stuff.
On our energy approach, we're trying to keep growth going through more energy
sources and through conservation. Some would have you just do nothing on the
former part of it, and I'm in a big fight, although it's not in this bill, on
the ANWR, the Alaskan Wildlife Refuge. I am absolutely convinced that you can
have prudent development, as we did in Prudhoe Bay of that. And yet I'm in a
big row with the environmentalists because they say, "Well, you say you're for
the environment; how come you're for ANWR?" I'm saying ANWR can be developed
without decimating the environment or the species there, in this case caribou or
whatever else it is.
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Services of Mead Data Central, Inc.
PAGE
3
28 Weekly Comp. Pres. Doc. 968
So I just cite that because it is something in my job that you have to keep
balancing, just as this guy's question was how do you balance the national
security from domestic. Here's one: How do you balance domestic growth,
families need to make a living, are hopefully becoming less dependent on foreign
oil, for a lot of reasons, and balance that with the environmental needs. And
you've raised this more specific question. We've just got to keep that ethic
going, and I think we can. I think we can do better on it.
Getting thrown out of here?
Q. Sir, we could sit here and talk all day long and probably all week long.
We just appreciate it so much your coming to Fresno and listening to our
concerns. We wish you the best of luck in the near future.
The President. Let me say -- thank you, Lou, very much. Let me just make
this observation that you can't help but feel when you're here. We're talking
about agriculture; we're talking about chemicals; we're talking about wetlands;
we're talking about economic growth; we're talking about national security.
These are all big issues. But I wish that Barbara Bush had been out here, the
Silver Fox we call her, because I think she would sense the feeling of community
and of family that WE sensed when WE lived in a climate not unlike this in West
Texas for 12 years and long before I got wrapped up in the political world.
LEXIS:NEXIS®
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THE WHITE HOUSE
WASHINGTON
October 9, 1992
CLUB P12: 41
MEMORANDUM FOR PHILLIP D. BRADY
FROM:
ROGER B. PORTER
RBP
SUBJECT:
Presidential Statement on the Energy Bill
A draft presidential statement on the energy bill is
attached.
I would appreciate very much your staffing it with comments
returned to my office as soon as possible.
Thank you very much.
Attachment
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
October 9, 1992
STATEMENT BY THE PRESS SECRETARY
The President was pleased to note that Congress has approved H.R.
776, the National Energy Security Act. This is a balanced and
comprehensive energy bill that enacts into law key elements of
the President's National Energy Strategy (NES), which he
announced on February 20, 1991.
In combination with the more than 90 administrative initiatives
contained in the NES, this bill will increase domestic energy
production, reduce our dependence on imports, promote
conservation and efficiency, and create American jobs. H.R. 776,
combined with the broader NES will reduce oil imports by
approximately 4.7 million barrels per day by the year 2000 and
will result in substantial consumer cost savings. The Nation's
electricity bill, for example, will be reduced by as much as
$17.6 billion (in 1990 dollars) in the year 2010. That
translates into an average saving of about $150 (in 1990 dollars)
in each household's annual electricity bill in 2010.
Furthermore, as part of the NES, this bill will increase the
production and use of clean renewable energy, foster new energy
technologies, and diversify the fuels we use for transportation.
It will encourage Americans to commute to work by using public
transit and vanpools, and will reward investment in energy
conservation by homeowners, businesses, and industry. In
addition, the alternative fuels provisions of the bill will help
wean our Nation away from energy imported from unstable regions
of the world -- a primary objective of the President's Strategy.
H.R. 776 provides much-needed alternative minimum tax (AMT)
relief for independent oil and gas producers. AMT relief is a
critically important part of the President's overall program to
improve the health of our domestic oil and gas industry. These
provisions will provide more than $1 billion of relief for
independent producers over the next five years.
The President extends congratulations to the Chairman of the
Senate Energy and Natural Resources Committee, Bennett Johnston
of Louisiana and to the Ranking Republican, Malcolm Wallop of
Wyoming and to Representatives John Dingell of Michigan and Norm
Lent of New York, the Chairman and Ranking Republican of the
House Energy and Commerce Committee.
356800ss
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: 10/21/92
ACTION/CONCURRENCE/COMMENT DUE BY: 5:00pm 10/22/92
ENROLLED BILL H.R. 776 - ENERGY POLICY ACT OF 1992
AND SIGNING STATEMENT
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCBRIDE
BAKER
MOORE
SCOWCROFT
MULLINS
DARMAN
PETERSMEYER
BATES
PORTER
BRADY
PROVOST
BROMLEY
ROSS
CALIO
SMITH
DEMAREST
TUTWILER
FITZWATER
ZOELLICK
CLERK
GRAY
HOLIDAY
BROMLEY
HORNER
BOSKIN
DELAND
REMARKS:
Please provide your comments on the attached directly to this
office NO LATER THAN 5:00pm THURSDAY, OCT. 22, 1992. Thank you.
RESPONSE:
PHILLIP D. BRADY
Assistant to the President
and Staff Secretary
Ext. 2702
PRESIDENT
OFFICE
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
STRUITY
STATES
WASHINGTON, D.C. 20503
200121 P5:18
THE DIRECTOR
October 21, 1992
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Enrolled Bill H.R. 776 - Energy Policy Act of 1992
Sponsors - Rep. Sharp (D) Indiana and 54 others
Last Day for Action
October 27, 1992 - Tuesday
Purpose
Enhances energy security by requiring increased energy
efficiency, removing regulatory barriers to production, and
promoting the use of renewable resources and alternative fuels.
Agency Recommendations
Office of Management and Budget
Approval
Department of Energy
Approval (Signing
statement attached)
Council of Economic Advisers
Approval
Department of Labor
Approval
National Security Council
Approval
Department of Agriculture
Approval (Informally)
Council on Environmental
Quality
Approval (Informally)
Environmental Protection
Agency (EPA)
Approval (Informally)
Tennessee Valley Authority
Approval (Informally)
Agency for International
Development
No objection
Department of the Interior
No objection (Informally)
Department of Transportation
No objection (Informally)
Department of the Treasury
No objection (Informally)
General Services Administration
No objection (Informally)
National Aeronautics and Space
Administration
No objection (Informally)
Nuclear Regulatory Commission
No objection (Informally)
Securities and Exchange Commission
No objection (Informally)
Department of Commerce
No objection (Informally)
Department of Justice
Defers to Energy
Department of Defense
Defers to Energy
(Informally)
Department of Health and
Human Services
Defers to Energy
(Informally)
Department of Housing and
Urban Development
No comment (Informally)
Department of State
No comment (Informally)
Department of Veterans Affairs
No comment (Informally)
Office of Personnel Management
No comment (Informally)
Office of Science and Technology
Policy
No comment (Informally)
Small Business Administration
No comment (Informally)
Office of the U.S. Trade
Representative
No comment (Informally)
Federal Trade Commission
No comment (Informally)
U.S. Postal Service
No comment (Informally)
Discussion
On February 20, 1991, you transmitted the Administration's
comprehensive national energy strategy (NES) to Congress. The
NES was designed to balance the goals of economic growth and
increased energy security, while protecting the environment.
Secretary Watkins transmitted NES implementing legislation to
Congress on March 4, 1991. Subsequently, the Administration
worked to ensure the enactment of energy legislation that would
be consistent with the NES. H.R. 776 represents the successful
culmination of the Administration's efforts.
Major Provisions of the Enrolled Bill
As proposed in the NES, H.R. 776 will ensure the more
efficient use of energy. It will enhance the Nation's energy
supply by eliminating regulatory barriers to production. It
will also encourage the increased use of renewable and
environmentally compatible energy sources. The major
provisions of the enrolled bill are described below. A
comprehensive section-by-section description of H.R. 776 is
provided as an attachment to the Department of Energy's views
letter.
Funding. H.R. 776 authorizes appropriations of $3.4
billion, $2.4 billion, $1.1 billion, $1.0 billion and $955
million for FYs 1993 through 1997, respectively. These sums
are authorized for a wide variety of energy-related activities.
The enrolled bill includes provisions that will increase
Federal revenues by $8.6 billion over five years (FYs 1993
through 1997). The largest revenue enhancers will prevent tax
avoidance on specified partnership transactions and increase
the excise tax on ozone-depleting chemicals. Revenue
reductions will total $3.0 billion over the same period, with
the largest reduction attributable to alternative minimum tax
relief for independent oil and gas producers. (A more detailed
summary of the revenue provisions is attached.)
-2-
Increased Energy Efficiency. H.R. 776 contains numerous
initiatives to improve energy efficiency in industrial,
commercial, residential, and public buildings by upgrading
building codes and materials specifications. Incentives are
provided to encourage public utilities to invest in
conservation and energy efficiency measures. Minimum energy
efficiency standards and labeling requirements are also
established for commercial and industrial equipment, including
heating and cooling systems, lamps, and plumbing supplies.
Numerous research, development, and demonstration (RD&D)
programs are established in the Department of Energy. They
would promote the commercial application of new technologies
for increasing energy efficiency and production in the future.
These include initiatives on clean coal, alternative fuels, and
improved oil and gas recovery techniques.
Enhanced Energy Supply. H.R. 776 increases competition in
the way electricity is generated and sold, thus lowering prices
while simultaneously ensuring adequate supplies. Amendments to
the Public Utility Holding Company Act will allow more small
electricity producers to enter the market. Amendments to the
Federal Power Act will allow these producers access to
transmission facilities.
The enrolled bill also removes barriers to nuclear power
production by streamlining the existing nuclear reactor
licensing process to allow for a combined construction and
operating license. Oil and gas production will benefit from
the permanent extension of alternative minimum tax relief for
independent oil and gas producers.
Renewable and Environmentally Sustainable Energy Sources.
Numerous Federal RD&D initiatives are authorized to accelerate
the commercial application and increased export of renewable
energy technologies. These include biomass, wind, and
geothermal systems. Studies are required on the potential for
increasing hydropower production at existing federally-owned or
operated dams.
Additional initiatives focus on increasing the use of
alternative fuel (e.g. compressed natural gas, electricity,
hydrogen, and ethanol) and alternative fuel vehicles (AFVs)
Specific AFV purchase requirements are imposed on Federal,
State, private, municipal, and energy industry fleets. Federal
assistance is authorized for State and local programs to
accelerate their use of AFVs. Tax incentives are also provided
to encourage the production of ethanol-based alternative fuels.
H.R. 776 will encourage the use of mass transit and
vanpools. It will do this by increasing the tax-free limit on
employer-provided subsidies for these activities and limiting
employer-provided parking subsidies that may be excluded from
taxable income.
-3-
Other Issues. Two key provisions of the Administration's
NES were not included in H.R. 776. The enrolled bill does not
expedite licensing procedures for construction of interstate
natural gas pipelines. Nor does it authorize the development
of the energy resources within the Arctic National Wildlife
Refuge.
The Administration, however, succeeded in removing several
highly objectionable congressional initiatives that would have
been detrimental to the Nation's energy security. These
provisions included limitations on oil and gas exploration and
production on the Outer Continental Shelf that went far beyond
the Administration's leasing moratorium. An expansion of the
Federal limitations on State regulation of natural gas
production was deleted, as was a mandatory 50 million barrel
regional refined petroleum product reserve. In addition, an
unnecessary expansion of authority to drawdown the Strategic
Petroleum Reserve was substantially cut back to the point where
it is no longer objectionable.
Pay-As-You-Go Scoring
H.R. 776 would affect direct spending and receipts;
therefore, it is subject to the pay-as-you-go requirements of
the Omnibus Budget Reconciliation Act of 1990. This Office
estimates that H.R. 776 will result in a net reduction in the
deficit of $959 million in FY 1993; $831 million in FY 1994;
$743 million in FY 1995; $736 million in FY 1996; and $698
million in FY 1997.
Agency Views
The Department of Energy advises that H.R. 776 "will
stimulate energy production, promote energy efficiency, remove
regulatory barriers, and promote the use of alternative
transportation fuels." Energy concludes that the enactment of
H.R. 776 is "a key achievement of this Administration" and
accordingly "strongly" recommends approval. Energy has
prepared a signing statement which is attached to its views
letter. The statement highlights the many important provisions
of H.R. 776 and characterizes the enrolled bill as one of the
initiatives that form the basis for your Agenda for American
Renewal.
The Department of Justice defers to the Department of
Energy with regard to the approval of H.R. 776. Justice,
however, raises constitutional concerns with certain provisions
of the enrolled bill. These concerns are fully described in
Justice's letter. Justice has attached to its views letter
language addressing its concerns which it recommends be
included in a signing statement. Energy revised its signing
statement to include the Justice language.
-4-
Conclusion and Recommendations
We join Energy and other interested agencies in
recommending approval of H.R. 776, which passed the House by a
vote of 363 to 60 and the Senate by a voice vote.
The revised Energy signing statement has been reviewed and
approved by Justice, Interior, Treasury, EPA, Commerce, Labor,
the Office of the White House Counsel, and this Office.
Damn
Richard Darman
Director
Enclosures
-5-
STATEMENT BY THE PRESIDENT
It is not often that even a President of the United States
can, without fear of exaggeration, call an occasion "historic."
This is an historic occasion. For today I am signing into law
H.R. 776, the "Energy Policy Act of 1992.' My action today will
place America upon a clear path toward a more prosperous, energy
efficient, environmentally sensitive, and economically secure
future.
Soon after I took office I directed the Secretary of Energy,
Admiral James Watkins, to prepare a comprehensive and balanced
National Energy Strategy. I did so because, as one who was in
the energy business myself, I have always understood and
appreciated the vital importance of energy to our economy and to
our daily lives. I also knew there were many changes that needed
to be made to government policies and programs if we were to take
full advantage of the tremendous resources our Nation possesses.
Under Admiral Watkins' leadership, the NES was issued in
February 1991. Proposed legislation to implement some of its
core features was sent to Congress on March 4, 1991. The NES was
unique because it provided a blueprint for our energy future
while ensuring that our environmental and economic goals would
also be met. The accompanying legislation did more than just
deal with energy. By its fundamental nature it affected the
Clean Air Act, Clean Water Act, Resource Conservation and
Recovery Act, and several other of our more complex statutes.
The passage of such a multifaceted bill is remarkable.
I must admit there were times when I doubted that this
legislation -- so comprehensive in scope and bold in content --
would make it through the Congress. History was against us.
That history showed that big energy bills were enacted only in
times of crisis. The Persian Gulf War certainly provided a sense
of urgency to the initial congressional deliberations on our
legislation. But happily, the war ended quickly in a great
triumph for our United Nations alliance. Less happily, energy
policy faded from the headlines. Our efforts to get Congress to
act, however, did not fade. We persevered and, with the support
of leading members of the congressional energy committees, sound
energy legislation was finally enacted by overwhelming margins in
both Houses.
There is so much that is good for America in this new law.
It contains a landmark provision furthering competition in the
way electricity is generated and sold, thus lowering prices while
at the same time ensuring adequate supplies. Reforms to
government licensing of new nuclear power plants will help to
preserve this option -- which now supplies one-fifth of our
electric power -- for the future. Our near total dependence upon
petroleum to fuel cars and trucks will begin to disappear because
of the provisions to encourage the development and use of clean
burning alternative fuels. Research and development on a host of
exciting new energy technologies -- including advanced clean
coal, natural gas, renewables, and conservation -- will be
greatly increased. America's independent oil and natural gas
-2-
producers will be allowed to keep more of their hard earned money
for re-investing in the production of domestic fossil fuels, so
we will produce more here and import less from abroad. Finally,
this bill will upgrade post-secondary math and science education
for low-income and first generation college students so that they
will have a better opportunity to contribute to their country and
thereby enrich their lives as well as ours.
These are some of the highlights of this legislation. The
chief highlight, however, is this: in all of these great and
worthy endeavors, Government will serve as the partner of private
enterprise, not as its master. This approach will allow our
Nation to reap the benefits of the greatest single energy
resource we possess -- the entrepreneurial spirit of free men and
women.
This new energy policy now takes its rightful place
alongside our initiatives in clean air, trade, and other areas
that together form a solid basis for my Agenda for American
Renewal. This agenda will enable us to double the growth of our
economy over the next decade, and achieve the world's first ten
trillion dollar economy.
I do not have the time here to thank all of the people who
deserve to be thanked and recognized for the achievement we are
celebrating today. I will simply say that because of their hard
work, faith, and devotion over the past three years Americans
will be able to live in a stronger country and a cleaner
environment, and enjoy a brighter future.
-3-
Several portions of the Act raise constitutional issues and
must be construed in a way that avoids those issues.
Various provisions of the Act must be interpreted consistent
with the Appointments Clause of the Constitution, which requires
that authority under Federal law be exercised only by officers of
the United States, and not by private organizations and State
officials. Accordingly, these provisions must be construed to
give such organizations and officials an advisory role only,
reserving for properly appointed Federal officers the exercise of
Federal authority.
For example, certain provisions added by Title I of the Act,
including sections 101, 121, and 123, purport to require the
Secretaries of Housing and Urban Development, Agriculture, and
Energy to amend Federal standards or testing procedures to
"conform to" or "be consistent with" standards or procedures to
be established in the future by private organizations.
Consistent with the Appointments Clause, the Secretaries should,
when exercising their responsibilities under these provisions,
reserve for themselves the final decision whether or to what
extent to adopt these standards or procedures. In particular,
the Title I provisions must be interpreted as authorizing, but
not requiring, the Secretaries to change Federal standards or
procedures in response to changes promulgated by the private
organizations specified in Title I.
Similarly, the effectiveness of exemptions for wholesale
generators and foreign utility companies under provisions of the
-4-
Public Utility Holding Company Act of 1935 (as added by sections
711 and 715 of this Act) purports to depend on the consent of
every State commission having jurisdiction over the relevant
utility company. Section 2407 (c) (1) of the Act purports to
condition the Federal Energy Regulatory Commission's granting of
certain licensing exemptions on the licensee's compliance with
terms and conditions set down by Alaska's fish and wildlife
agency. In administering these provisions, the Federal Energy
Regulatory Commission should, while requiring that notice be
given to the relevant State commissions and agency and while
taking into account the views of such commissions and agency,
reserve for itself the final decision regarding the exemptions.
Section 1306 (c) of the Atomic Energy Act of 1954 (as added
by section 901 of this Act) requires that all "books, accounts,
financial records, reports, files, papers, and other property
belonging to or in use by the [United States Uranium Enrichment]
Corporation" be made available to the Comptroller General at his
request. Similarly, section 2605 (1) (3) of the Act authorizes
the Indian Energy Resource Commission to "secure directly from
any Federal agency such information as may be necessary to enable
the Commission to carry out its duties." Such information will
be made available to the Comptroller General and the Commission
to the extent permitted by law, including Executive privilege.
Under section 1312 (b) and (c) of the Atomic Energy Act (as
added by section 901 of this Act), the Enrichment Corporation is
subject to Federal environmental laws and to the Occupational
-5-
Safety and Health Act. To avoid constitutional problems, I will
construe these provisions not to authorize litigation in court
between the Corporation and other Federal agencies while the
Corporation is a wholly owned government corporation.
Section 1315 of the Atomic Energy Act (as also added by
section 901 of this Act) provides that the President shall
appoint a Transition Manager, who shall exercise the powers of
the Corporation until a quorum of the Board of Directors has been
"appointed and confirmed." I will interpret this provision not
to interfere with my authority under Article II, section 2 of the
Constitution to make recess appointments of members of the Board
of Directors.
Sections 1211 (a) and 1332 (a) of the Act purport to direct
the Secretary of Energy to enter into agreements with the
Administrator of the Agency for International Development and
other agency heads. If these officers are unable to reach such
agreements, they must send their competing versions of proposed
agreements to the President, who shall within 90 days determine
which version shall be in effect. I will interpret these
provisions consistent with my inherent constitutional authority
as head of the Executive branch to supervise my subordinates in
the exercise of their duties, including my authority to settle
disputes that occur between those officials through other means.
Sections 1332 (g) (3) and 1608 (g) (3) of this Act direct the
Secretary of Energy to "consult with government officials" and
other persons in certain foreign countries regarding technology
-6-
transfer programs. Section 3020 (c) and (d) of the Act purport to
direct the course and objectives of negotiations concerning the
establishment of a Consultative Commission of Western Hemisphere
Energy and Environment and to require that the Commission include
representatives of legislative bodies, presumably including the
Congress. Under the Constitution, it is the President, not the
Congress, who articulates the foreign policy goals of the Nation,
who decides whether and when to negotiate agreements with foreign
nations or otherwise consult with them, and who represents the
United States in international bodies. I will, therefore,
construe these provisions merely to express the sense of the
Congress with respect to the matters to which they refer.
Section 3021 (a) of the Act directs agencies to expend ten
percent of the amounts obligated for certain contracts under the
Act with organizations that may be defined on the basis of race,
ethnicity, or gender. A grant of Federal money or benefits based
solely on the recipient's race, ethnicity, or gender is
presumptively unconstitutional under the equal protection
standards of the Constitution. I will construe these provisions
consistently with the demands of the Constitution and, in
particular, construe them so as not to allow the expenditure of
monies solely on the basis of race, ethnicity, or gender.
Finally, several provisions of the Act purport to require
officers of the Executive branch to submit reports and plans to
Congress containing recommendations for legislative action. I
will construe these provisions in light of my constitutional duty
-7-
and authority to recommend to Congress such legislative measures
as I judge necessary and expedient. Several other provisions of
the Act require Executive agencies to submit certain reports "to
the President and the Congress." I will interpret these not to
encroach upon my constitutional authority to supervise and guide
my subordinates in the execution of their duties, including the
review of their proposed communications to Congress.
-8-
Attachment
October 21, 1992
ENERGY REVENUE PROVISIONS
(FYs - DOLLARS IN MILLIONS)
ENERGY-RELATED PROVISIONS
1993
1994
1995
1996
Limit Exclusion For Employer-Provided
1997
1993-1997
Parking To $155/Month
10
24
24
25
Increase Excise Tax On Ozone-Depleting
26
109
Chemicals
94
282
383
399
Uranium Enrichment Decommissioning Fund
333
1491
141
144
149
153
Net Abandoned Mine Land Reclamation
158
745
Fee Extension/Coal Miners Retiree
Health Benefits
228
Use Of Excess Black Lung Funds
251
479
5
8
8
8
Coal Company Premiums and Pension Transfers
8
37
218
300
250
173
166
1107
COMPLIANCE MEASURES
Require Reporting of Seller-Financed
Mortgage Tax ID #.
122
108
115
122
Prevent Tax Avoidance On Partnership
129
596
392
805
640
Transactions
453
457
2747
The Alexander Estate Tax Treatment
3
3
3
10
Information Reporting of Property
30
49
Tax Real Estate Deals
2
25
26
27
Classification By Corporations As
29
109
Stock or Indebtedness
4
13
15
19
Increase Withholding On Gambling
25
76
To 28%
88
4
5
5
Increase Backup Withholding From
5
107
20% to 31%
400
100
100
100
Disallow Travel Expenses When Away
100
800
From Home For More Than 1 year
18
31
33
SUBTOTAL
34
36
152
1497
1847
1751
1756
1753
8604
REVENUE REDUCING PROVISIONS
Raise Transit Fare Subsidy To $60/Month
-5
-14
-15
-17
Exclusion For Conservation Subsidies By
-19
-70
Utilities
-49
-102
-143
-176
Deduction For Clean Fuel Vehicles and
-188
-658
Property
-15
-47
-63
-64
1.5 Cent per KWH Production Credit
-72
-261
For Wind (1/1/94) and Biomass
0
-5
-16
-30
AMT Relief Independent Oil and Gas
-48
-99
-148
-269
-235
-233
Permanent Extension Of Business
-243
-1128
Energy Credits
-40
-49
-58
-63
Reduce Tax Rate On Nuclear
-69
-279
Decommissioning Funds
0
-13
-24
-31
Tax Credit For Biomass and Coal
-39
-107
Gasification Facilities Section 29
-5
-8
-25
-36
Tax Exempt Bonds For Environmental
-36
-110
Improvements To Hydro electric
Plants
-1
-2
-3
-4
Pro-Rata Exemption For Ethanol
-4
-14
0
0
-12
-20
Trans Alaska Pipeline System
-20
-52
0
0
0
0
Increase Withholding Exemption
0
0
For Gambling Winnings to $5000
-12
-1
-1
Coal Miners Health Premium Offset
-1
-1
-16
0
-56
-36
-35
SUBTOTAL
-35
-162
-275
-566
-631
-710
-774
-2956
TOTAL (Effect on deficit)
-1222
-1281
-1120
-1046
-979
-5648