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    "ocrText": "Originally Processed With FOIA(s):\nFOIA Number:\nS; 2011-1613-F[1]\nS\nFOIA\nMARKER\nThis is not a textual record. This is used as an\nadministrative marker by the George Bush Presidential\nLibrary Staff.\nRecord Group/Collection:\nGeorge H.W. Bush Presidential Records\nCollection/Office of Origin:\nSpeechwriting, White House Office of\nSeries:\nSpeech File Backup Files\nSubseries:\nChron File, 1989-1993\nOA/ID Number:\n13839\nFolder ID Number:\n13839-007\nFolder Title:\nEnergy Bill Signing 10/24/92 [OA 8486]\nStack:\nRow:\nSection:\nShelf:\nPosition:\nG\n26\n23\n2\n1\nEXECUTIVE OFFICE OF THE PRESIDE\n22-Oct-1992 06:13pm\nTO:\n(See Below)\nFROM:\nClaire F. Turney\nOffice of Communications\nSUBJECT: Staffed speech\n(Ferguson/Grossman)\nOctober 22, 1992\nDraft One\nENERGY\nPRESIDENTIAL REMARKS: ENERGY BILL SIGNING\nOCTOBER 24, 1992\nAFTERNOON,\nLAEAVETTE, LOUISIANA\nMAURICE\nGood morning, everyone.\n2.20.91\n(Acknowledgments)\nto Filler Fing\nX\nX\nX\nX\nX\nT\nI\nX\nAlmost X two years ago, my Administration proposed a National\n3233\nEnergy Strategy -- a blueprint to make our country safer and more\nsecure. Our strategy was based on a simple premise: that the\ngreatest single energy resource America possesses is the wisdom\nand enterprise of its citizens.\nThe last two years have seen much hard work, many hundreds\nof hours of hard study and negotiation. Our efforts have now\nborne fruit. This morning I will sign the Energy Policy Act of\n3183 OMB\n1992.\nTogether with the more than 90 adminištrative initiatives my\nTeresu 200\nadministration was able to undertake on its own, the Energy\nPolicy Act will/ increase domestic energy production, reduce our\nsubstantially\nBOTER over\nimperted\nreliance on foreign energy sources, promote conservation and\nefficiency, and créate American jobs.\nAnd we will accomplish these goals not by resorting to the\nfailed methods of government control, but by unleashing the\ngenius of private enterprise.\nThe Act increases competition in the way electricity is\ngenerated and sold -- reducing the strain on family budgets\nacross the country. By the year 2010, for example, our reforms\nOVER THE NEXT TEN YEARS\nElectricity 586-5727\n586-6518\n#\nNES\nwill save the average American household $150 a year in its\nannual electricity bill.\nThe Act improves licensing procedures for new nuclear power\nplants -- guaranteeing that this safe and clean resource helps\nmeet the energy needs of the next century.\nUsing the power of the market, the Act encourages the\ndevelopment and use of clean-burning alternative fuels -- so that\nthe robust production of energy will go hand-in-hand with a clean\nenvironment.\nThe Act provides much-needed tax relief for our Nation's\nindependent oil and gas producers -- allowing them to keep more\nof their hard-earned money to reinvest in the production of\ndomestic fossil fuels. From now on, we must produce more of our\nenergy here at home, and import less from abroad. Our national\nsecurity demands it; future generations deserve it; and now we\ncan ensure that it will be done.\nI spent much of my life in the oil business, building a\ncompany, meeting a payroll. I saw first-hand how government can\nhelp -- and hinder -- the men and women who meet the energy needs\nof their fellow Americans. I believe that this Act opens a new\nera, in which government acts not as master but as partner and\nservant.\nMy only regret is that I haven't the time to thank all those\nwho deserve to be thanked for the achievement we celebrate on\nthis historic day. Let me simply close by saying that because of\nEnergy Dept to\nLaura faxed 700 this mellilo 2 OCT 14 ??\nA10 : 58\nDRAFT STATEMENT OF PRESIDENT BUSH\nON SIGNING OF ENERGY POLICY ACT OF 1992\nIt is not often that even a President of the United States\ncan, without fear of exaggeration, call an occasion \"historic\".\nThis is an historic occasion. For today I am signing into law\nthe National Energy Policy Act of 1992, and thereby placing\nAmerica upon a clear path toward a more prosperous, more energy\nefficient, more environmentally sensitive, and more economically\nsecure future.\nSoon after I took office I directed my Secretary of Energy,\nAdmiral James Watkins, to prepare a comprehensive and balanced\nNational Energy Strategy. I did so because as one who was in the\nenergy business myself I have always understood and appreciated\nthe vital importance of energy to our economy and to our daily\nlives, and because I knew there were many changes that needed to\nbe made to government policies and programs if we were to take\nfull advantage of the tremendous resources our Nation possesses.\nUnder Admiral Watkins' leadership, the NES was issued in\nFebruary 1991, accompanied by proposed legislation to implement\nsome of its core features. The NES was unique because it\nprovided a blueprint for our energy future while ensuring that\nour environmental and economic goals would also be met. The\nlegislation which I sent to Congress did more than just deal with\nenergy. By its fundamental nature it affected the Clean Air Act,\nClean Water Act, Resource Conservation and Recovery Act and\nseveral other of our more complex statutes. The passage of such\na complex bill is remarkable.\nI must admit there were times when I doubted that this\nlegislation--so comprehensive in scope and bold in content--would\nmake it through the Congress. History was against us. That\nhistory showed that big energy bills were enacted by Congress\nonly in times of crisis. The Persian Gulf War certainly provided\na sense of urgency to the initial Congressional deliberations on\nour legislation. But happily, the war ended quickly in a great\ntriumph for our United Nations alliance. Less happily, energy\npolicy faded from the headlines. Our efforts to get Congress to\nact, however, did not fade. We persevered and with the support\nof leading members of the energy committees in the Congress,\nsound energy legislation was finally enacted by overwhelming\nmargins in both Houses.\nThere is so much that is good for America in this new law.\nCompetition in the way electricity is generated and sold will be\nincreased, thus lowering prices while at the same time ensuring\nadequate supplies. Reforms to government licensing of new\nnuclear power plants will help to preserve this option--which now\nsupplies one-fifth of our electric power--for the future. Our\nnear total dependence upon petroleum to fuel cars and trucks will\nbegin to disappear because of the provisions in the bill to\nencourage the development and use of clean burning alternative\nfuels. Research and development on a host of exciting new energy\ntechnologies--including advanced clean coal, natural gas,\nrenewables and conservation--will be greatly increased.\nAmerica's independent oil and natural gas producers will be\nallowed to keep more of their hard earned money for re-investing\nin the production of domestic fossil fuels, so we will produce\nmore here and import less from abroad. Finally, this bill will\nupgrade post-secondary math and science education for low-income\nand first generation college students so they will have a better\nopportunity to contribute to their country and thereby enrich\ntheir lives as well as ours.\nThese are some of the highlights of this legislation. The\nchief highlight, however, is this: in all of these great and\nworthy endeavors, government will serve as the partner of private\nenterprise, not as its master. This approach will allow our\nNation to reap the benefits of the greatest single energy\nresource we possess--the entrepreneurial spirit of free men and\nwomen.\nThis new energy policy now takes its rightful place\nalongside our initiatives in clean air, trade, and other areas\nthat together form a solid basis for my Agenda for American\nRenewal. This agenda will enable us to double the growth of our\neconomy over the next decade, and achieve the world's first\ntrillion dollar economy.\nI do not have the time here to thank all of the people who\ndeserve to be thanked and recognized for the achievement we are\ncelebrating today. I will simply close by saying that because of\ntheir hard work, faith and devotion over the past three years\nAmericans will be able to live in a stronger country and a\ncleaner environment, and enjoy a brighter future.\nThank you.\nPREVIOUS RHETORIC ON THE ENERGY BILL\n28 Weekly Comp. Pres. Doc. 1090\nQ. Mr. President, I agree that we are leaders in the environment. But if\nreelected, what incentives would you devise to aid our country in reducing our\noverconsumption of the energy resources?\nThe President. We've got an energy bill before the Congress right now that\ndoes that, encourages alternative use of fuels. We have sound environmental\npractice on offshore. We've got - in this bill, I mean, all - from lighting\n--- kinds of new light bulbs that really save an enormous amount of energy to\nalternative uses of fuel. We've got a good program. It's hung up in the United\nStates Congress right now. But I would press forward on that energy bill and\ntry to move forward.\nLet me say this as a word of caution, though. We are more and more dependent\non foreign oil. It was about a year and a half ago when the Persian Gulf\nsituation got fired up, that it was predicted oil would go to $ 80 a barrel\noverseas. And I don't know if you saw what Saddam Hussein said the other day.\nHe said, the biggest mistake he made is when he first moved into Kuwait that he\ndidn't move into Saudi Arabia. You want to project something that would just\nshoot these gasoline prices right off the scoreboard, try that one on.\nTM\nTM\nLEXIS:NEXIS®\nLEXIS-NEXIS®\nLEXIS-NEXIS\nServices of Mead Data Central, Inc.\nPAGE\n2\n28 Weekly Comp. Pres. Doc. 1090\nSo what we've got to do, it seems to me, is to try to become less dependent\non foreign oil for security reasons, and that means alternate sources. I may\nget into a big fight here, but I believe that nuclear power can be used safely,\nand it's clean-burning --- I believe clean. I believe that we ought to\nfacilitate that rather than turn our back on that.\nBut it does concern me that we're becoming more dependent on foreign oil, and\nyet, I think the answer is conservation and alternative sources. That's in our\nenergy bill.\nQ. Mr. President - and I assume that you are -- what do you think about the\noil that we've got to send out for incineration?\nThe President. What you've got to send out for incineration? Help me, I'm\nnot a technologist, but what I see here I like in terms - refining it.\nQ. Well, the oil that fails our test that we do on the field, we send that\nout for incineration to Kansas, to a facility, the RCRA facility that burns it\noff.\nThe President. I'm sorry, I hate to say this. Yes, I'm President, but I\ndon't know enough about the technology to know whether that's good or bad.\n28 Weekly Comp. Pres. Doc. 968\nEnergy Bill\nThe President. And I agree. I mean, I think farmers are not only\nenvironmentalists but conservationists. I think that's very, very important. I\nthink we have to do it.\nIncidentally, I would like to make a pitch for our energy bill that passed\nthe Congress the other day, which does have some good, sound conservation in it,\nbut also it balances out the need for this country to grow. I don't want to\nshift the subject away from your question, but in all these fields - and this\ngets back to this young man's question - in all these fields there's a question\nof philosophy on a lot of this stuff.\nOn our energy approach, we're trying to keep growth going through more energy\nsources and through conservation. Some would have you just do nothing on the\nformer part of it, and I'm in a big fight, although it's not in this bill, on\nthe ANWR, the Alaskan Wildlife Refuge. I am absolutely convinced that you can\nhave prudent development, as we did in Prudhoe Bay of that. And yet I'm in a\nbig row with the environmentalists because they say, \"Well, you say you're for\nthe environment; how come you're for ANWR?\" I'm saying ANWR can be developed\nwithout decimating the environment or the species there, in this case caribou or\nwhatever else it is.\nLEXIS·NEXIS®\nLEXIS-NEXIS®\nLEXIS-NEXIS®\nServices of Mead Data Central, Inc.\nPAGE\n3\n28 Weekly Comp. Pres. Doc. 968\nSo I just cite that because it is something in my job that you have to keep\nbalancing, just as this guy's question was how do you balance the national\nsecurity from domestic. Here's one: How do you balance domestic growth,\nfamilies need to make a living, are hopefully becoming less dependent on foreign\noil, for a lot of reasons, and balance that with the environmental needs. And\nyou've raised this more specific question. We've just got to keep that ethic\ngoing, and I think we can. I think we can do better on it.\nGetting thrown out of here?\nQ. Sir, we could sit here and talk all day long and probably all week long.\nWe just appreciate it so much your coming to Fresno and listening to our\nconcerns. We wish you the best of luck in the near future.\nThe President. Let me say -- thank you, Lou, very much. Let me just make\nthis observation that you can't help but feel when you're here. We're talking\nabout agriculture; we're talking about chemicals; we're talking about wetlands;\nwe're talking about economic growth; we're talking about national security.\nThese are all big issues. But I wish that Barbara Bush had been out here, the\nSilver Fox we call her, because I think she would sense the feeling of community\nand of family that WE sensed when WE lived in a climate not unlike this in West\nTexas for 12 years and long before I got wrapped up in the political world.\nLEXIS:NEXIS®\nLEXIS-NEXIS®\nLEXIS·NEXIS®\nServices of Mead Data Central, Inc.\nTHE WHITE HOUSE\nWASHINGTON\nOctober 9, 1992\nCLUB P12: 41\nMEMORANDUM FOR PHILLIP D. BRADY\nFROM:\nROGER B. PORTER\nRBP\nSUBJECT:\nPresidential Statement on the Energy Bill\nA draft presidential statement on the energy bill is\nattached.\nI would appreciate very much your staffing it with comments\nreturned to my office as soon as possible.\nThank you very much.\nAttachment\nTHE WHITE HOUSE\nOffice of the Press Secretary\nFor Immediate Release\nOctober 9, 1992\nSTATEMENT BY THE PRESS SECRETARY\nThe President was pleased to note that Congress has approved H.R.\n776, the National Energy Security Act. This is a balanced and\ncomprehensive energy bill that enacts into law key elements of\nthe President's National Energy Strategy (NES), which he\nannounced on February 20, 1991.\nIn combination with the more than 90 administrative initiatives\ncontained in the NES, this bill will increase domestic energy\nproduction, reduce our dependence on imports, promote\nconservation and efficiency, and create American jobs. H.R. 776,\ncombined with the broader NES will reduce oil imports by\napproximately 4.7 million barrels per day by the year 2000 and\nwill result in substantial consumer cost savings. The Nation's\nelectricity bill, for example, will be reduced by as much as\n$17.6 billion (in 1990 dollars) in the year 2010. That\ntranslates into an average saving of about $150 (in 1990 dollars)\nin each household's annual electricity bill in 2010.\nFurthermore, as part of the NES, this bill will increase the\nproduction and use of clean renewable energy, foster new energy\ntechnologies, and diversify the fuels we use for transportation.\nIt will encourage Americans to commute to work by using public\ntransit and vanpools, and will reward investment in energy\nconservation by homeowners, businesses, and industry. In\naddition, the alternative fuels provisions of the bill will help\nwean our Nation away from energy imported from unstable regions\nof the world -- a primary objective of the President's Strategy.\nH.R. 776 provides much-needed alternative minimum tax (AMT)\nrelief for independent oil and gas producers. AMT relief is a\ncritically important part of the President's overall program to\nimprove the health of our domestic oil and gas industry. These\nprovisions will provide more than $1 billion of relief for\nindependent producers over the next five years.\nThe President extends congratulations to the Chairman of the\nSenate Energy and Natural Resources Committee, Bennett Johnston\nof Louisiana and to the Ranking Republican, Malcolm Wallop of\nWyoming and to Representatives John Dingell of Michigan and Norm\nLent of New York, the Chairman and Ranking Republican of the\nHouse Energy and Commerce Committee.\n356800ss\nDocument No.\nWHITE HOUSE STAFFING MEMORANDUM\nDATE: 10/21/92\nACTION/CONCURRENCE/COMMENT DUE BY: 5:00pm 10/22/92\nENROLLED BILL H.R. 776 - ENERGY POLICY ACT OF 1992\nAND SIGNING STATEMENT\nSUBJECT:\nACTION FYI\nACTION FYI\nVICE PRESIDENT\nMCBRIDE\nBAKER\nMOORE\nSCOWCROFT\nMULLINS\nDARMAN\nPETERSMEYER\nBATES\nPORTER\nBRADY\nPROVOST\nBROMLEY\nROSS\nCALIO\nSMITH\nDEMAREST\nTUTWILER\nFITZWATER\nZOELLICK\nCLERK\nGRAY\nHOLIDAY\nBROMLEY\nHORNER\nBOSKIN\nDELAND\nREMARKS:\nPlease provide your comments on the attached directly to this\noffice NO LATER THAN 5:00pm THURSDAY, OCT. 22, 1992. Thank you.\nRESPONSE:\nPHILLIP D. BRADY\nAssistant to the President\nand Staff Secretary\nExt. 2702\nPRESIDENT\nOFFICE\nEXECUTIVE OFFICE OF THE PRESIDENT\nUNITED\nOFFICE OF MANAGEMENT AND BUDGET\nSTRUITY\nSTATES\nWASHINGTON, D.C. 20503\n200121 P5:18\nTHE DIRECTOR\nOctober 21, 1992\nMEMORANDUM FOR THE PRESIDENT\nSUBJECT: Enrolled Bill H.R. 776 - Energy Policy Act of 1992\nSponsors - Rep. Sharp (D) Indiana and 54 others\nLast Day for Action\nOctober 27, 1992 - Tuesday\nPurpose\nEnhances energy security by requiring increased energy\nefficiency, removing regulatory barriers to production, and\npromoting the use of renewable resources and alternative fuels.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Energy\nApproval (Signing\nstatement attached)\nCouncil of Economic Advisers\nApproval\nDepartment of Labor\nApproval\nNational Security Council\nApproval\nDepartment of Agriculture\nApproval (Informally)\nCouncil on Environmental\nQuality\nApproval (Informally)\nEnvironmental Protection\nAgency (EPA)\nApproval (Informally)\nTennessee Valley Authority\nApproval (Informally)\nAgency for International\nDevelopment\nNo objection\nDepartment of the Interior\nNo objection (Informally)\nDepartment of Transportation\nNo objection (Informally)\nDepartment of the Treasury\nNo objection (Informally)\nGeneral Services Administration\nNo objection (Informally)\nNational Aeronautics and Space\nAdministration\nNo objection (Informally)\nNuclear Regulatory Commission\nNo objection (Informally)\nSecurities and Exchange Commission\nNo objection (Informally)\nDepartment of Commerce\nNo objection (Informally)\nDepartment of Justice\nDefers to Energy\nDepartment of Defense\nDefers to Energy\n(Informally)\nDepartment of Health and\nHuman Services\nDefers to Energy\n(Informally)\nDepartment of Housing and\nUrban Development\nNo comment (Informally)\nDepartment of State\nNo comment (Informally)\nDepartment of Veterans Affairs\nNo comment (Informally)\nOffice of Personnel Management\nNo comment (Informally)\nOffice of Science and Technology\nPolicy\nNo comment (Informally)\nSmall Business Administration\nNo comment (Informally)\nOffice of the U.S. Trade\nRepresentative\nNo comment (Informally)\nFederal Trade Commission\nNo comment (Informally)\nU.S. Postal Service\nNo comment (Informally)\nDiscussion\nOn February 20, 1991, you transmitted the Administration's\ncomprehensive national energy strategy (NES) to Congress. The\nNES was designed to balance the goals of economic growth and\nincreased energy security, while protecting the environment.\nSecretary Watkins transmitted NES implementing legislation to\nCongress on March 4, 1991. Subsequently, the Administration\nworked to ensure the enactment of energy legislation that would\nbe consistent with the NES. H.R. 776 represents the successful\nculmination of the Administration's efforts.\nMajor Provisions of the Enrolled Bill\nAs proposed in the NES, H.R. 776 will ensure the more\nefficient use of energy. It will enhance the Nation's energy\nsupply by eliminating regulatory barriers to production. It\nwill also encourage the increased use of renewable and\nenvironmentally compatible energy sources. The major\nprovisions of the enrolled bill are described below. A\ncomprehensive section-by-section description of H.R. 776 is\nprovided as an attachment to the Department of Energy's views\nletter.\nFunding. H.R. 776 authorizes appropriations of $3.4\nbillion, $2.4 billion, $1.1 billion, $1.0 billion and $955\nmillion for FYs 1993 through 1997, respectively. These sums\nare authorized for a wide variety of energy-related activities.\nThe enrolled bill includes provisions that will increase\nFederal revenues by $8.6 billion over five years (FYs 1993\nthrough 1997). The largest revenue enhancers will prevent tax\navoidance on specified partnership transactions and increase\nthe excise tax on ozone-depleting chemicals. Revenue\nreductions will total $3.0 billion over the same period, with\nthe largest reduction attributable to alternative minimum tax\nrelief for independent oil and gas producers. (A more detailed\nsummary of the revenue provisions is attached.)\n-2-\nIncreased Energy Efficiency. H.R. 776 contains numerous\ninitiatives to improve energy efficiency in industrial,\ncommercial, residential, and public buildings by upgrading\nbuilding codes and materials specifications. Incentives are\nprovided to encourage public utilities to invest in\nconservation and energy efficiency measures. Minimum energy\nefficiency standards and labeling requirements are also\nestablished for commercial and industrial equipment, including\nheating and cooling systems, lamps, and plumbing supplies.\nNumerous research, development, and demonstration (RD&D)\nprograms are established in the Department of Energy. They\nwould promote the commercial application of new technologies\nfor increasing energy efficiency and production in the future.\nThese include initiatives on clean coal, alternative fuels, and\nimproved oil and gas recovery techniques.\nEnhanced Energy Supply. H.R. 776 increases competition in\nthe way electricity is generated and sold, thus lowering prices\nwhile simultaneously ensuring adequate supplies. Amendments to\nthe Public Utility Holding Company Act will allow more small\nelectricity producers to enter the market. Amendments to the\nFederal Power Act will allow these producers access to\ntransmission facilities.\nThe enrolled bill also removes barriers to nuclear power\nproduction by streamlining the existing nuclear reactor\nlicensing process to allow for a combined construction and\noperating license. Oil and gas production will benefit from\nthe permanent extension of alternative minimum tax relief for\nindependent oil and gas producers.\nRenewable and Environmentally Sustainable Energy Sources.\nNumerous Federal RD&D initiatives are authorized to accelerate\nthe commercial application and increased export of renewable\nenergy technologies. These include biomass, wind, and\ngeothermal systems. Studies are required on the potential for\nincreasing hydropower production at existing federally-owned or\noperated dams.\nAdditional initiatives focus on increasing the use of\nalternative fuel (e.g. compressed natural gas, electricity,\nhydrogen, and ethanol) and alternative fuel vehicles (AFVs)\nSpecific AFV purchase requirements are imposed on Federal,\nState, private, municipal, and energy industry fleets. Federal\nassistance is authorized for State and local programs to\naccelerate their use of AFVs. Tax incentives are also provided\nto encourage the production of ethanol-based alternative fuels.\nH.R. 776 will encourage the use of mass transit and\nvanpools. It will do this by increasing the tax-free limit on\nemployer-provided subsidies for these activities and limiting\nemployer-provided parking subsidies that may be excluded from\ntaxable income.\n-3-\nOther Issues. Two key provisions of the Administration's\nNES were not included in H.R. 776. The enrolled bill does not\nexpedite licensing procedures for construction of interstate\nnatural gas pipelines. Nor does it authorize the development\nof the energy resources within the Arctic National Wildlife\nRefuge.\nThe Administration, however, succeeded in removing several\nhighly objectionable congressional initiatives that would have\nbeen detrimental to the Nation's energy security. These\nprovisions included limitations on oil and gas exploration and\nproduction on the Outer Continental Shelf that went far beyond\nthe Administration's leasing moratorium. An expansion of the\nFederal limitations on State regulation of natural gas\nproduction was deleted, as was a mandatory 50 million barrel\nregional refined petroleum product reserve. In addition, an\nunnecessary expansion of authority to drawdown the Strategic\nPetroleum Reserve was substantially cut back to the point where\nit is no longer objectionable.\nPay-As-You-Go Scoring\nH.R. 776 would affect direct spending and receipts;\ntherefore, it is subject to the pay-as-you-go requirements of\nthe Omnibus Budget Reconciliation Act of 1990. This Office\nestimates that H.R. 776 will result in a net reduction in the\ndeficit of $959 million in FY 1993; $831 million in FY 1994;\n$743 million in FY 1995; $736 million in FY 1996; and $698\nmillion in FY 1997.\nAgency Views\nThe Department of Energy advises that H.R. 776 \"will\nstimulate energy production, promote energy efficiency, remove\nregulatory barriers, and promote the use of alternative\ntransportation fuels.\" Energy concludes that the enactment of\nH.R. 776 is \"a key achievement of this Administration\" and\naccordingly \"strongly\" recommends approval. Energy has\nprepared a signing statement which is attached to its views\nletter. The statement highlights the many important provisions\nof H.R. 776 and characterizes the enrolled bill as one of the\ninitiatives that form the basis for your Agenda for American\nRenewal.\nThe Department of Justice defers to the Department of\nEnergy with regard to the approval of H.R. 776. Justice,\nhowever, raises constitutional concerns with certain provisions\nof the enrolled bill. These concerns are fully described in\nJustice's letter. Justice has attached to its views letter\nlanguage addressing its concerns which it recommends be\nincluded in a signing statement. Energy revised its signing\nstatement to include the Justice language.\n-4-\nConclusion and Recommendations\nWe join Energy and other interested agencies in\nrecommending approval of H.R. 776, which passed the House by a\nvote of 363 to 60 and the Senate by a voice vote.\nThe revised Energy signing statement has been reviewed and\napproved by Justice, Interior, Treasury, EPA, Commerce, Labor,\nthe Office of the White House Counsel, and this Office.\nDamn\nRichard Darman\nDirector\nEnclosures\n-5-\nSTATEMENT BY THE PRESIDENT\nIt is not often that even a President of the United States\ncan, without fear of exaggeration, call an occasion \"historic.\"\nThis is an historic occasion. For today I am signing into law\nH.R. 776, the \"Energy Policy Act of 1992.' My action today will\nplace America upon a clear path toward a more prosperous, energy\nefficient, environmentally sensitive, and economically secure\nfuture.\nSoon after I took office I directed the Secretary of Energy,\nAdmiral James Watkins, to prepare a comprehensive and balanced\nNational Energy Strategy. I did so because, as one who was in\nthe energy business myself, I have always understood and\nappreciated the vital importance of energy to our economy and to\nour daily lives. I also knew there were many changes that needed\nto be made to government policies and programs if we were to take\nfull advantage of the tremendous resources our Nation possesses.\nUnder Admiral Watkins' leadership, the NES was issued in\nFebruary 1991. Proposed legislation to implement some of its\ncore features was sent to Congress on March 4, 1991. The NES was\nunique because it provided a blueprint for our energy future\nwhile ensuring that our environmental and economic goals would\nalso be met. The accompanying legislation did more than just\ndeal with energy. By its fundamental nature it affected the\nClean Air Act, Clean Water Act, Resource Conservation and\nRecovery Act, and several other of our more complex statutes.\nThe passage of such a multifaceted bill is remarkable.\nI must admit there were times when I doubted that this\nlegislation -- so comprehensive in scope and bold in content --\nwould make it through the Congress. History was against us.\nThat history showed that big energy bills were enacted only in\ntimes of crisis. The Persian Gulf War certainly provided a sense\nof urgency to the initial congressional deliberations on our\nlegislation. But happily, the war ended quickly in a great\ntriumph for our United Nations alliance. Less happily, energy\npolicy faded from the headlines. Our efforts to get Congress to\nact, however, did not fade. We persevered and, with the support\nof leading members of the congressional energy committees, sound\nenergy legislation was finally enacted by overwhelming margins in\nboth Houses.\nThere is so much that is good for America in this new law.\nIt contains a landmark provision furthering competition in the\nway electricity is generated and sold, thus lowering prices while\nat the same time ensuring adequate supplies. Reforms to\ngovernment licensing of new nuclear power plants will help to\npreserve this option -- which now supplies one-fifth of our\nelectric power -- for the future. Our near total dependence upon\npetroleum to fuel cars and trucks will begin to disappear because\nof the provisions to encourage the development and use of clean\nburning alternative fuels. Research and development on a host of\nexciting new energy technologies -- including advanced clean\ncoal, natural gas, renewables, and conservation -- will be\ngreatly increased. America's independent oil and natural gas\n-2-\nproducers will be allowed to keep more of their hard earned money\nfor re-investing in the production of domestic fossil fuels, so\nwe will produce more here and import less from abroad. Finally,\nthis bill will upgrade post-secondary math and science education\nfor low-income and first generation college students so that they\nwill have a better opportunity to contribute to their country and\nthereby enrich their lives as well as ours.\nThese are some of the highlights of this legislation. The\nchief highlight, however, is this: in all of these great and\nworthy endeavors, Government will serve as the partner of private\nenterprise, not as its master. This approach will allow our\nNation to reap the benefits of the greatest single energy\nresource we possess -- the entrepreneurial spirit of free men and\nwomen.\nThis new energy policy now takes its rightful place\nalongside our initiatives in clean air, trade, and other areas\nthat together form a solid basis for my Agenda for American\nRenewal. This agenda will enable us to double the growth of our\neconomy over the next decade, and achieve the world's first ten\ntrillion dollar economy.\nI do not have the time here to thank all of the people who\ndeserve to be thanked and recognized for the achievement we are\ncelebrating today. I will simply say that because of their hard\nwork, faith, and devotion over the past three years Americans\nwill be able to live in a stronger country and a cleaner\nenvironment, and enjoy a brighter future.\n-3-\nSeveral portions of the Act raise constitutional issues and\nmust be construed in a way that avoids those issues.\nVarious provisions of the Act must be interpreted consistent\nwith the Appointments Clause of the Constitution, which requires\nthat authority under Federal law be exercised only by officers of\nthe United States, and not by private organizations and State\nofficials. Accordingly, these provisions must be construed to\ngive such organizations and officials an advisory role only,\nreserving for properly appointed Federal officers the exercise of\nFederal authority.\nFor example, certain provisions added by Title I of the Act,\nincluding sections 101, 121, and 123, purport to require the\nSecretaries of Housing and Urban Development, Agriculture, and\nEnergy to amend Federal standards or testing procedures to\n\"conform to\" or \"be consistent with\" standards or procedures to\nbe established in the future by private organizations.\nConsistent with the Appointments Clause, the Secretaries should,\nwhen exercising their responsibilities under these provisions,\nreserve for themselves the final decision whether or to what\nextent to adopt these standards or procedures. In particular,\nthe Title I provisions must be interpreted as authorizing, but\nnot requiring, the Secretaries to change Federal standards or\nprocedures in response to changes promulgated by the private\norganizations specified in Title I.\nSimilarly, the effectiveness of exemptions for wholesale\ngenerators and foreign utility companies under provisions of the\n-4-\nPublic Utility Holding Company Act of 1935 (as added by sections\n711 and 715 of this Act) purports to depend on the consent of\nevery State commission having jurisdiction over the relevant\nutility company. Section 2407 (c) (1) of the Act purports to\ncondition the Federal Energy Regulatory Commission's granting of\ncertain licensing exemptions on the licensee's compliance with\nterms and conditions set down by Alaska's fish and wildlife\nagency. In administering these provisions, the Federal Energy\nRegulatory Commission should, while requiring that notice be\ngiven to the relevant State commissions and agency and while\ntaking into account the views of such commissions and agency,\nreserve for itself the final decision regarding the exemptions.\nSection 1306 (c) of the Atomic Energy Act of 1954 (as added\nby section 901 of this Act) requires that all \"books, accounts,\nfinancial records, reports, files, papers, and other property\nbelonging to or in use by the [United States Uranium Enrichment]\nCorporation\" be made available to the Comptroller General at his\nrequest. Similarly, section 2605 (1) (3) of the Act authorizes\nthe Indian Energy Resource Commission to \"secure directly from\nany Federal agency such information as may be necessary to enable\nthe Commission to carry out its duties.\" Such information will\nbe made available to the Comptroller General and the Commission\nto the extent permitted by law, including Executive privilege.\nUnder section 1312 (b) and (c) of the Atomic Energy Act (as\nadded by section 901 of this Act), the Enrichment Corporation is\nsubject to Federal environmental laws and to the Occupational\n-5-\nSafety and Health Act. To avoid constitutional problems, I will\nconstrue these provisions not to authorize litigation in court\nbetween the Corporation and other Federal agencies while the\nCorporation is a wholly owned government corporation.\nSection 1315 of the Atomic Energy Act (as also added by\nsection 901 of this Act) provides that the President shall\nappoint a Transition Manager, who shall exercise the powers of\nthe Corporation until a quorum of the Board of Directors has been\n\"appointed and confirmed.\" I will interpret this provision not\nto interfere with my authority under Article II, section 2 of the\nConstitution to make recess appointments of members of the Board\nof Directors.\nSections 1211 (a) and 1332 (a) of the Act purport to direct\nthe Secretary of Energy to enter into agreements with the\nAdministrator of the Agency for International Development and\nother agency heads. If these officers are unable to reach such\nagreements, they must send their competing versions of proposed\nagreements to the President, who shall within 90 days determine\nwhich version shall be in effect. I will interpret these\nprovisions consistent with my inherent constitutional authority\nas head of the Executive branch to supervise my subordinates in\nthe exercise of their duties, including my authority to settle\ndisputes that occur between those officials through other means.\nSections 1332 (g) (3) and 1608 (g) (3) of this Act direct the\nSecretary of Energy to \"consult with government officials\" and\nother persons in certain foreign countries regarding technology\n-6-\ntransfer programs. Section 3020 (c) and (d) of the Act purport to\ndirect the course and objectives of negotiations concerning the\nestablishment of a Consultative Commission of Western Hemisphere\nEnergy and Environment and to require that the Commission include\nrepresentatives of legislative bodies, presumably including the\nCongress. Under the Constitution, it is the President, not the\nCongress, who articulates the foreign policy goals of the Nation,\nwho decides whether and when to negotiate agreements with foreign\nnations or otherwise consult with them, and who represents the\nUnited States in international bodies. I will, therefore,\nconstrue these provisions merely to express the sense of the\nCongress with respect to the matters to which they refer.\nSection 3021 (a) of the Act directs agencies to expend ten\npercent of the amounts obligated for certain contracts under the\nAct with organizations that may be defined on the basis of race,\nethnicity, or gender. A grant of Federal money or benefits based\nsolely on the recipient's race, ethnicity, or gender is\npresumptively unconstitutional under the equal protection\nstandards of the Constitution. I will construe these provisions\nconsistently with the demands of the Constitution and, in\nparticular, construe them so as not to allow the expenditure of\nmonies solely on the basis of race, ethnicity, or gender.\nFinally, several provisions of the Act purport to require\nofficers of the Executive branch to submit reports and plans to\nCongress containing recommendations for legislative action. I\nwill construe these provisions in light of my constitutional duty\n-7-\nand authority to recommend to Congress such legislative measures\nas I judge necessary and expedient. Several other provisions of\nthe Act require Executive agencies to submit certain reports \"to\nthe President and the Congress.\" I will interpret these not to\nencroach upon my constitutional authority to supervise and guide\nmy subordinates in the execution of their duties, including the\nreview of their proposed communications to Congress.\n-8-\nAttachment\nOctober 21, 1992\nENERGY REVENUE PROVISIONS\n(FYs - DOLLARS IN MILLIONS)\nENERGY-RELATED PROVISIONS\n1993\n1994\n1995\n1996\nLimit Exclusion For Employer-Provided\n1997\n1993-1997\nParking To $155/Month\n10\n24\n24\n25\nIncrease Excise Tax On Ozone-Depleting\n26\n109\nChemicals\n94\n282\n383\n399\nUranium Enrichment Decommissioning Fund\n333\n1491\n141\n144\n149\n153\nNet Abandoned Mine Land Reclamation\n158\n745\nFee Extension/Coal Miners Retiree\nHealth Benefits\n228\nUse Of Excess Black Lung Funds\n251\n479\n5\n8\n8\n8\nCoal Company Premiums and Pension Transfers\n8\n37\n218\n300\n250\n173\n166\n1107\nCOMPLIANCE MEASURES\nRequire Reporting of Seller-Financed\nMortgage Tax ID #.\n122\n108\n115\n122\nPrevent Tax Avoidance On Partnership\n129\n596\n392\n805\n640\nTransactions\n453\n457\n2747\nThe Alexander Estate Tax Treatment\n3\n3\n3\n10\nInformation Reporting of Property\n30\n49\nTax Real Estate Deals\n2\n25\n26\n27\nClassification By Corporations As\n29\n109\nStock or Indebtedness\n4\n13\n15\n19\nIncrease Withholding On Gambling\n25\n76\nTo 28%\n88\n4\n5\n5\nIncrease Backup Withholding From\n5\n107\n20% to 31%\n400\n100\n100\n100\nDisallow Travel Expenses When Away\n100\n800\nFrom Home For More Than 1 year\n18\n31\n33\nSUBTOTAL\n34\n36\n152\n1497\n1847\n1751\n1756\n1753\n8604\nREVENUE REDUCING PROVISIONS\nRaise Transit Fare Subsidy To $60/Month\n-5\n-14\n-15\n-17\nExclusion For Conservation Subsidies By\n-19\n-70\nUtilities\n-49\n-102\n-143\n-176\nDeduction For Clean Fuel Vehicles and\n-188\n-658\nProperty\n-15\n-47\n-63\n-64\n1.5 Cent per KWH Production Credit\n-72\n-261\nFor Wind (1/1/94) and Biomass\n0\n-5\n-16\n-30\nAMT Relief Independent Oil and Gas\n-48\n-99\n-148\n-269\n-235\n-233\nPermanent Extension Of Business\n-243\n-1128\nEnergy Credits\n-40\n-49\n-58\n-63\nReduce Tax Rate On Nuclear\n-69\n-279\nDecommissioning Funds\n0\n-13\n-24\n-31\nTax Credit For Biomass and Coal\n-39\n-107\nGasification Facilities Section 29\n-5\n-8\n-25\n-36\nTax Exempt Bonds For Environmental\n-36\n-110\nImprovements To Hydro electric\nPlants\n-1\n-2\n-3\n-4\nPro-Rata Exemption For Ethanol\n-4\n-14\n0\n0\n-12\n-20\nTrans Alaska Pipeline System\n-20\n-52\n0\n0\n0\n0\nIncrease Withholding Exemption\n0\n0\nFor Gambling Winnings to $5000\n-12\n-1\n-1\nCoal Miners Health Premium Offset\n-1\n-1\n-16\n0\n-56\n-36\n-35\nSUBTOTAL\n-35\n-162\n-275\n-566\n-631\n-710\n-774\n-2956\nTOTAL (Effect on deficit)\n-1222\n-1281\n-1120\n-1046\n-979\n-5648"
}