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Environment (2)
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16987824
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Environment (2)
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James M. Cannon Files (Ford Administration)
James Cannon's Issues Files
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President (1974-1977 : Ford). Council on Environmental Quality. (1974 - 1977)
Environmental Protection Agency. Office of Enforcement. (2/1/1975 - 7/1/1981)
Environmental protection
Natural resources
Pollution
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The original documents are located in Box 14, folder "Environment (2)" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 14 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
Marion Clawson
[1975]
Ecology; Second Thoughts
The environmental revivalism of the
land now cultivated, or make some
mid-1960s was overdue, but many of
other adjustment, or simply accept an
the actions it spawned were ill-eon-
insufficient food supply? Some alter-
ceived, illusorv in their results, or
natives are rather evident, others are
even M unful. Electric power com-
dubious or difficult, and still others
panies were encouraged or forced to
are nearly or totally impossible.
i
FORD
e
shift from coat to oil or gas as a
source of energy, only shortly to Le
2. What is the economic efficiency
n
of each physically and biologically
J
feasible alternative? Almost anything
n
GERALD
LIBRARY
Dr. Clawson is acting president of
can be done, If one does not count
0
Resources for the Future, Inc. This ar-
cost-bananas can be grown in cold
V
ticle is adapted from his statement in
climates, water brought to deserts,
IT
the organization's 1974 annual report,
metals extracted from seawater or
tl
from country rock, or even gold made
n
from lead. These extremes aside, con-
at
forced to reconvert at considerable ex-
siderations of economic efficiency may
it
pense when supplies of gas and oil
be, often should be, dominant The
to
were inadequate. Legislation re-
benefit-cost approach has been wide.
quired banning of chemicals which
ly abused, even prostituted, and yet it
might cause cancer in humans, regard-
is basic. Count every cost and every
less of how low the probability and re-
benefit, not merely those bought and
gardless of the adverse consequences
sold in the market: count secondary
to food supply and thus to health.
and tertiary as well as primary ef-
One of the most pervasive environ-
fects. Yet in the end, both individual
mental measures of the past decade
and society must decide: are the gains
was the National Environmental Pol-
worth the costs?
icy Act of 1969. It was not the first
time that Congress enacted a law
3. But economic efficiency is not
which it did not fully understand and
sufficient; who gains the benefits and
who pays the costs? How does society
sia
whose meaning is only now slowly be-
ing forged in the courts. Environ-
or its elected government decide that
pl
mental impact statements surely im-
the gain to one person out-weighs the
fu
loss to another?
pede public action, whether it be well
or ill conceived. They are costly to
4. Social acceptability may be as
Sc
prepare, are an open invitation to
important as physical-biological feas-
th
lengthy court disputes, and may in
ibility, economic efficiency, and con-
ea
time be largely thwarted as public
siderations of distribution of costs and
agencies learn perfunctory compli-
gains. Eating beef is as abhorrent to
ec
ance. A sharp check rein upon public
some Hindus as eating human flesh
So
agencies was almost surely necess "y,
is to Americans Clearcutting as a
th
but the short-run efficiency of en-
forest technique is eulturally unac-
ti
vironmental impact statements is low
ceptable to some people.
V)
and their long-run effectiveness is, at
5. Lastly, a proposed resource or
ti
best, unproven.
environmental program must be oper-
"
There is evidence of a serious re-
ationally or administratively practical.
tj
cession in the tide of environmental
There is little gained, and much may
concern. "Environment" is a serious
be lost, by proposing some program
p
issue with vastly fewer young people
which, for one of several reasons,
R
today. The hard core of dedicated en-
cannot or will not be carried out. A
$
vironmentalists, young and old, still
program of waste collection and re-
hold meetings, still circulate petitions,
cycling which depends on consumer
0
still write letters to magazines, news-
cooperation may fail because too few
$
papers, and public officials, and still
people cooperate. A land use plan-
attend public hearings. But apparently
ning process which depends on the
they find it harder to command atten-
independence of the planning board
tion and fresh audiences.
from the political pressure of builders
At the federal level, both Adminis-
may fail because such pressures are
tration and Congress have had and are
inevitable. And so on.
having second thoughts about environ-
Utilization of five kinds of consider-
mental programs. In the economic
ations presents serious analytical prob.
and social framework which 1 fear
lems. How does one balance off high
the United States faces for the next
social acceptability against low eco-
few years, environmental protection
nomic efficiency, for instance? It is
is likely to find it increasingly hard
possible, however, to establish mini-
going.
The partial and piecemeal approach
to environmental problems has been
"The partial and piecemeal
particularly strange because its pro-
approach to environmental
ponents have ignored the maxim of
ecology which presumably all would
problems ignored the
accept: that everything in an ecosys-
tem is related to everything else in
maxim of ecology: everything
that system. Had interrelationships
is related to everything
among inputs, processes, and outputs
been carefully studied, and had more
else."
distant, as well as primary, consequen-
ces been considered, the marching up
mum levels or thresholds for each of
and down of the past few years could
these three factors, below which a pro-
have been much reduced, if not
posed program will be rejected out of
avoided entirely The environmental
hand.
It
is
also
to
decide
that
in the courts, Environ-
the gain to one person out-weighs the
fu
mental impact statements surely im-
loss to another?
pede public action. whether it be well
or ill conceived. They are costly to
4. Social acceptability may be as
Sc
important as physical-biological feas-
th
prepare, are an open invitation to
lengthy court disputes, and may in
ibility, economic efficiency, and con-
ca
time be largely thwarted as public
siderations of distribution of costs and
agencies learn perfunctory compli-
gains. Eating beef is as abhorrent to
ce
some Hindus as eating human flesh
St
ance. A sharp check rein upon public
agencies was almost surely necessary.
is to Americans. Clearcutting as a
th
but the short-run efficiency of en-
forest technique is culturally unac-
ti
vironmental impact statements is low
ceptable to some people.
V.
and their long-run effectiveness is, at
5. Lastly, a proposed resource or
ti
best, unproven.
environmental program must be oper-
to
There is evidence of a serious re-
ationally or administratively practical.
ti
cession in the tide of environmental
There is little gained, and much may
concern. "Environment" is a serious
be lost, by proposing some program
P
issue with vastly fewer young people
which, for one of several reasons,
R
today. The hard core of dedicated en-
cannot or will not carried out. A
S
vironmentalists, young and old, still
program of waste collection and re-
hold meetings, still circulate petitions,
eyeling which depends on consumer
0
still write letters to magazines, news-
cooperation may fail because too few
S
papers, and public officials, and still
people cooperate. A land use plan-
n
attend public hearings. But apparently
ning process which depends on the
a
they find it harder to command atten-
independence of the planning board
a
tion and fresh audiences.
from the political pressure of builders
a
&
FORD
At the federal level, both Adminis-
may fail because such pressures are
0
tration and Congress have had and are
inevitable. And so on.
having second thoughts about environ-
Utilization of five kinds of consider-
1
mental programs. In the economic
ations presents serious analytical prob-
C
GERALD
LIBRARY
and social framework which I fear
lems. How does one balance off high
the United States faces for the next
social acceptability against low eco-
few years, environmental protection
nomic efficiency, for instance? It is
e
is likely to find it increasingly hard
possible, however, to establish mini-
8
going.
The partial and piecemeal approach
to environmental problems has been
"The partial and piecemeal
C
particularly strange because its pro-
approach to environmental
ponents have ignored the maxim of
ecology which presumably all would
problems ignored the
accept: that everything in an ecosys-
tem is related to everything else in
maxim of ecology: everything
that system. Had interrelationships
is related to everything
among inputs, processes, and outputs
been carefully studied, and had more
else."
distant, as well as primary, consequen-
ces been considered. the marching up
mum levels or thresholds for each of
and down of the past few years could
these three factors, below which a pro-
have been much reduced, if not
posed program will be rejected out of
avoided entirely. The environmental
hand. It is also possible to measure
protagonist simply forgot what the
the trade-offs so that more informed
environmental scientist had taught-
political choices can be made.
even when the same person played
If one acknowledges that the com-
both roles.
prehensive and eclectic approach out-
The environment economic output
lined above has merit, how might
population complex of problems is too
something like this come into use?
serious, especially in the long run, to
Public agencies, individuals, firms and
be brushed aside or taken lightly. Man
interest groups each have their estab-
cannot produce indefinitely at a rate
lished ways of doing things, which
which leads to constantly growing
they are reluctant to change. The ap-
numbers, any inore than can any other
proach proposed here is not required
species. wither can our environment
by any law; indeed, it is not easy to
absoro alimited quantities of strange,
see how it could be translated into
even exotic, chemicals and other
law.
wastes. Some basic adjustments in
A different danger also exists. A
population, consumption and produc-
call for more careful and more com-
tion are clearly required. But how
prehensive planning of resource and
much, what kind, when and by whom?
environmental problems might well
In view of our past failures to deal
be used as the excuse for obfuscation
with these problems soundly, I have
and procrastination. One can almost
evolved a five-fold approach:
hear some affected group calling for
1. What are the physical-biological
more facts, more research, and more
alternatives in natural resource use
planning as a means of stalling some
in any given situation, and what are
action which it does not wish to
the physical-biological consequences
oppose openly.
of implementing each alternative? For
Given these serious theoretical and
instance, faced with the need for more
operational problems, why then do I
food. does the family or the nation
still advocate this approach? The an-
seek to bring more land under culti-
swer is clear to me: no lesser, simpler
vation, or apply more fertilizer to the
approach is adequate,
GOOD
COUNCIL ON ENVIRONMENTAL QUALITY
WASHINGTON
I
CHAIRMAN
January 10, 1975
Dear Nelson:
The attached is of interest to the Domestic
Council, and I therefore thought you would
like to have a copy.
Sincerely,
Russ
FORD & LIBRARY GERALD
Russell W. Peterson
Honorable Nelson A. Rockefeller
The Vice President
United States Senate
Washington, D.C. 20510
Attachment
FORD & LIBRARY 037470
EXECUTIVE OFFICE OF THE PRESIDENT
COUNCIL ON ENVIRONMENTAL QUALITY
722 JACKSON PLACE, N. W.
WASHINGTON, D. C. 20006
1 0 JAN 1975
MEMORANDUM FOR THE PRESIDENT
SUBJECT: Environmental Message
This is to follow up on our conversation last month
about the desirability of an Environmental Message.
I have discussed it with Rog Morton and Russ Train
and they both support the concept. The purpose of
this memo is to outline in preliminary fashion CEQ's
suggestions for the contents of an Environmental
Message and obtain approval for us to work with the
Domestic Council, OMB, and the departments and
agencies to develop a draft message and specific
proposals.
A 1975 Environmental Message is desirable for many
reasons. Most practically, it would serve to
transmit to the Congress a number of important
environmental proposals which the Executive Branch
has supported for several years, including land use,
toxic substances, and hazardous waste disposal
legislation. It would provide a vehicle for new
initiatives. Most importantly, a message would
focus attention on your Administration's position
on environmental issues, thereby defining a leader-
ship role in an area of policy which has continuing
strong support in Congress and the Nation.
"The New Conservation" offers a striking theme with
broad appeal.
-2-
Tab A contains a brief preliminary outline of what
the Environmental Message might say. Tab B provides
brief descriptions of the major proposals we consider
appropriate for interagency review.
Russell W. Peterson
Chairman
An Environmental Message should be prepared.
Approved
Disapproved
A
183H
X
M
is
FORD,
GERALD
OUTLINE - 1975 ENVIRONMENTAL MESSAGE
1.
Introduction
Summarize environmental accomplishments since
Earth Day 1970
- new institutions
- new legislation
- new international priority
Stress need for balance, in particular with
- energy development
- economic growth
2.
"The New Conservation"
Our new perspective recognizes finite resources,
global interdependence, population growth
Need for a "New Conservation," stressing
- elimination of waste
- husbanding of resources
- importance of productivity
- protection of natural systems
- concern for population growth
3.
Conservation of our Energy
Reference recommendations in the State of the
Union and Energy Messages, including the need
for amendments to the Clean Air Act
4.
Conservation of our Land
Reaffirmation of previous proposals
- Land use legislation (proposed in 1971, 1972, 1973)
- Natural Resources Lands Management Act (proposed
in 1972, 1973)
- Mining and Mineral Leasing Laws (proposed in 1973)
-2-
- Environmental Protection Tax Act (proposed in
1972,1973)
- Public Wild Lands in Alaska (proposed in 1973)
New proposals
- Land and Water Conservation Fund
- Floodplain Protection
- Public Lands Planning
- Wetlands Preservation
- Agricultural Land Preservation
5.
Conservation of our Resources
New proposals
- Recycling Tax Credit
- Freight Rate Equalization for Recycled Materials
- Mandatory Deposit for Beverage Containers
6.
Conservation of our Environment
Reaffirmation of previous proposals
- Toxic Substances (proposed in 1971,1972,1973)
- Hazardous Waste Disposal (proposed in 1973)
New proposals
- Water Pollution Amendments
- Freon - Ozone
- Burden of Proof Regarding Cancer Hazards
- Non-Metallic and Metallic Mine Safety
- Non-Game Wildlife Program
7.
Conservation of the Global Environment
Ratification of 5 International Environmental
Conventions
10
LAND USE
The Problem
The proliferation of overlapping and often conflicting
controls on land use in some areas, as well as the
absence of adequate controls in others, has resulted
in recent years in the need for state and local govern-
ments to develop more rational land use policies. The
key issue is how the state and its localities will split
up decision authority over the management of land. There
is no need for Federal involvement in the decision-making,
but Federal land use legislation is necessary to encour-
age the development of state and local programs.
Proposal
Submit land use legislation along the lines of the
Coastal Zone Management Act of 1972 (now being implemented
through grants to the states by the Commerce Department).
Key provisions would provide assistance to states to
identify and protect critical areas and adequately site
key facilities, including energy facilities, and would
require consistency of Federal programs with state
planning and regulatory programs. The program would be
voluntary for those states wishing to participate.
Land use legislation has been passed by the Senate in
the last two Congresses, and was narrowly defeated in
the House last year. It is likely to be enacted by the
new Congress. A discussion of land use was held at the
November 29 meeting of the Cabinet. The Department of
the Interior has drawn up proposed legislation, which
is now under review by other agencies.
NATIONAL RESOURCE LANDS MANAGEMENT ACT
(BLM ORGANIC ACT)
The Problem
The Bureau of Land Management of the Department of Interior
has exclusive responsibility for 450 million acres or 60
percent of the Federally owned lands. Yet BLM lacks basic
organic authority to administer, manage, and protect these
lands for the long-term benefit of the nation.
Proposal
Resubmit the National Resource Lands Management Act. The
proposed legislation provides basic authority for multiple
use and environmental management of these lands, and
repeals many existing laws that are inadequate, out-of-date,
or inconsistent.
The Administration has strongly supported legislation to
clearly define the mission of the Bureau of Land Management.
Legislation similar to that proposed by the Department of
the Interior passed the Senate last session. The House
bill was considerably different than the Administration
and Senate proposal. A new effort is required to assure
passage of an acceptable bill.
MINING AND MINERAL LEASING LAWS
The Problem
There are numerous outdated and often conflicting laws
which govern the development and extraction of minerals
from the public lands. The U.S. Mining Laws of 1872
govern the location-patent system for the hard rock
minerals (i.e., copper, lead, zinc, gold, silver, and
others) Other laws govern the leasable minerals (oil,
gas, oil shale, potassium, sodium, asbestos and other
bedded minerals).
The Mining Laws of 1872 have many shortcomings:
Responsible Federal officials cannot determine
areas to be developed; miners are free to
prospect and develop minerals on all public
lands open to entry.
Upon discovery of valuable minerals, a claimant
may patent his claim. Thus the public loses
both public lands and the mineral resource.
There is no fee or royalty paid to the United
States for the development or extraction of a
public resource.
Only limited controls to protect the environment
are possible.
The various laws. governing mineral leasing provide insuf-
ficient Federal discretion, insufficient return to the
public, inadequate environmental protection, and a con-
fusing array of regulations which are difficult and
expensive to administer.
Proposal
Resubmit legislation which would repeal the Mining Act
of 1872 and reform the mineral leasing laws. This
legislation covers the exploration and development of
all minerals on the public lands. Through a leasing
-2-
system, the legislation would provide Federal discretion
in mineral disposal, a fair return to the public for its
mineral estate, environmental protection, and conserva-
tion of minerals.
Uniform standards, regulations, and penalties, wherever
possible, would eliminate discrimination against certain
industries, thus encouraging mineral recovery with less
confusion for industry. Administration of public lands
and mining on it would be simplified. In many cases,
duplication of administrative structures and personnel.
could be avoided.
ENVIRONMENTAL PROTECTION TAX ACT
The Problem
Existing provisions of the Federal income tax laws have
unintended but adverse effects on environmental quality.
In particular:
depreciation laws favor the demolition and
clearance of older buildings and their
replacement by new buildings constructed
with quick turnover in mind
tax deductions are allowed for the expenses
of draining and filling wetlands for devel-
opment which could as easily be placed on
dry land
open space easement donations are discouraged
by tax lawyers because of confusion over the
interpretation of the tax laws and IRS regu-
lations
Proposal
Resubmit the Environmental Protection Tax Act. It would
correct these biases in the tax laws by:
treating construction of new buildings and
substantial rehabilitation of older structures
the same for depreciation purposes
providing fast write-offs for rehabilitation
of registered historic structures and disallow
the cost of their demolition
disallowing the cost of draining, dredging and
filling coastal wetlands for construction
PUBLIC WILD LANDS IN ALASKA
The Problem
In December 1973, pursuant to the Alaska Native Claims
Settlement Act, the Secretary of the Interior recommended
to the Congress that 83 million acres of Federal land in
Alaska be added to the National Park, National Forest,
Wildlife Refuge, and Wild and Scenic River Systems.
Although final action is not required for four years,
prompt consideration by the Congress is desirable. None
has taken place to date.
Proposal
Include in the Environmental Message a request that Congress
initiate its review of the "4-systems" proposals.
PGERALO FORD LIBRARY
LAND AND WATER CONSERVATION FUND
The Problem
The Land and Water Conservation Fund serves as the primary
funding source for purchasing land for open space recrea-
tion and wildlife protection, both through direct Federal
purchases and through 50 percent grants to states. The
fund is presently set at $300 million per year; monies
come from a number of sources, with the difference up to
$300 million made up from Federal OCS receipts.
The funding level for this popular program has remained
essentially level for several years. Increasing land
costs, a large backlog of proposed purchases, and growing
demands for protection of coastal areas from the influx
of energy-related development have resulted in demand for
funds far exceeding supply. At the same time, a sub-
stantial increase in OCS receipts is anticipated by
opening up new areas, especially in the Atlantic, for
leasing.
Proposal
Submit legislation to increase the funding level of the
Land and Water Conservation Fund to $1. billion annually
by authorizing the use of OCS receipts to make up any
difference between amounts collected from other sources
and the new level. Priority should be given to the pur-
chase of recreation and wildlife lands in coastal areas
likely to be impacted by OCS-related development.
The Department of the Interior has been working on legis-
lation to accomplish these changes in the Land and Water
Conservation Fund Act.
300million to / billion a big like in View of
budget
FLOODPLAIN PROTECTION
The Problem
Property damage, loss of life, and disaster relief from
floods continue to increase despite massive Federal
investment in flood protection works and flood insurance.
Losses amount to $1-4 billion annually, most of which
falls on the Federal Government. Less costly prevention
measures --- such as limiting development in floodplains --
have been largely neglected. Indeed, some Federal pro-
grams continue to fund infrastructure investments such
as roads, sewers, and housing in the floodplain, thereby
fostering development which is likely to be damaged or
destroyed by future floods.
In 1966, Executive Order 11296 was issued in an effort
to make all agencies recognize the need to avoid encourag-
ing development in floodplains. Agencies were directed
to issue guidelines to assure that Federal programs did
not stimulate floodplain development. Yet agencies have
never complied with the requirement to develop plans for
meeting the requirements of the Executive Order.
The Proposal
Update Executive Order 11296 to bring it into conformance
with post-1966 legislative and executive developments, reaffirm
its underlying rationale, and require expeditious agency
implementation of its policies.
PUBLIC LANDS PLANNING
The Problem
Public lands (including national parks, forests, wildlife
refuges, national resource lands) make up one-third of
the nation's land. There is currently no generally
accepted framework for land use planning among the major
Federal public lands agencies, nor is there adequate
coordination between Federal land planning and affected
states and communities. Since planning decisions often
transcend administrative boundaries, coordination is
essential to:
guide natural resource protection, management
and development programs
guide location of investments in transportation
and energy facilities
protect areas of unique and special value
coordinate Federal decisions with other Federal,
state and local government programs.
Proposal
Issue an Executive Order directing public land agencies,
primarily the Forest Service, BLM, Fish and Wildlife
Service, and the National Park Service, to cooperate
in regional land use planning efforts. Federal public
lands agencies would be directed to:
-establish public lands planning areas in loca-
tions requiring special planning attention (e.g.,
the Yellowstone National Park region)
coordinate their land use planning in other areas
where contiguous lands are managed by several
Federal agencies
cooperate in developing improved land use planning
systems
work more closely with the states and communities
WETLANDS PRESERVATION
The Problem
Wetlands, both coastal and inland, serve important
national purposes. They are a main source of food and
protection for two-thirds of marine species and thus
are essential for the continued viability of commercial
fishing. Wetlands also blunt storms and high tides and
act as wildlife and waterfowl habitat, hydrologic
recharge areas, and recreation resources.
FORD
Piecemeal destruction of wetlands through draining,
dredging, and filling has caused major losses in many
regions of our country. (Up to 2/3 of San Francisco
Bay and over 1/2 of Long Island Sound wetlands have
been permanently lost.) The Federal Government has
extensive and continuing programs that adversely affect
wetlands by encouraging construction, development, and
other activities in and near wetlands.
Proposal
Issue an Executive Order establishing a national policy
of wetland preservation and requiring Federal agencies
to ensure that facilities caused or endorsed by program
activities are placed outside of wetlands wherever
possible or where they must be located in wetlands,
are constructed, operated and maintained to minimize
impact. Exemptions would be allowed on a per project
basis.
AGRICULTURAL LAND PRESERVATION
The Problem
The world food situation and the importance of agri-
cultural products as U.S. export commodities suggest
a national goal of maximum agricultural productive
capacity. Yet nearly a million acres of prime agri-
cultural land are being developed each year without
regard to their agricultural importance.
Proposal
Issue an Executive Order establishing a national policy
of preservation of prime agricultural land and requir-
ing Federal agencies to ensure that their activities
do not consume such land. Exemptions would be allowed
on a per project basis with approval of the Secretary
of Agriculture.
V. private land developers
RECYCLING TAX CREDIT
The Problem
Current solid waste management practices are environment-
ally damaging, financially burdensome, and wasteful of
scarce energy and mineral resources. About 250 million
tons of solid wastes are now generated annually in the
United States and this amount is growing at an annual
rate of around 4 percent. Approximately 90 percent of
the solid waste volume is disposed of in landfills, with
the remainder incinerated. Of the landfills in operation
in the U.S., only 10 percent are managed in an acceptable
manner from the standpoint of public health and the envi-
ronment; the remainder are simply open dumps.
While resource recovery is receiving increased attention
as a means of large-scale waste disposal, its growth is
hindered by Federal policies (particularly tax policies)
that tend to make virgin materials more attractive than
reclaimed materials. Various provisions of -the Federal
tax code (e.g., percentage depletion allowances, favor-
able capital gains treatment) provide substantial benefits
to the virgin materials production sectors that are not
available to the recycled material sector.
Users tend to regard reclaimed materials as marginal
supplies to be utilized during periods of high product
demand and ignored at other times. This leads to extreme
fluctuations in scrap prices and an atmosphere of uncer-
tainty which discourages investment in recovery facilities.
Within the past year alone, scrap paper prices have dropped
from $45 to $7 per ton, and scrap copper prices have fallen
to 40 cents from a high of $1.10 a pound.
The energy potentially recoverable from post-consumer
residential and commercial solid waste could displace from
400,000 to 500,000 barrels of oil per day. Materials
recycled could provide 7 percent of the iron, 8 percent
of the aluminum, 20 percent of the tin, and 19 percent
of the paper consumed annually in the United States.
-2-
Proposal
Amend the Internal Revenue Code to reduce the tax liability
of processors of post-consumer waste by 15 percent of
income derived from resource recovery. Processors, includ-
ing governmental entities, could elect to transfer eligibility
for the tax credit to a user of the recovered resources.
The tax credit, which would be effective for a period of
10 years, is based upon the value of the recovered resources
prior to transportation to the user. It would be appli-
cable to post-consumer waste from residential and commercial
sources, and would include glass, ferrous metals, and paper
products.
A tax credit, in conjunction with the continuing develop-
ment of more economical resource recovery systems, would
permit the formation of a substantial reclaimed materials
market. Stimulus of the tax credit would bridge existing
economic gaps and accelerate the implementation of resource
recovery systems. By the time the tax benefits are elimi-
nated, resource recovery could develop into a self-sustaining
and economically viable alternative to conventional solid
waste disposal.
FREIGHT RATE EQUALIZATION FOR RECYCLED MATERIALS
The Problem
There is evidence to indicate that freight rates deter-
mined by the Interstate Commerce Commission and the Federal
Maritime Commission discriminate against shipment of
secondary materials versus shipment of virgin materials.
Rates for several recycled materials exceed actual
transportation costs by higher margins than do rates
for competing virgin materials. For instance, the
ratio of revenue to costs incurred for shipment by
railroad of iron and steel scrap exceeds that for shipment
of iron ore by as much as 65 percent. Under competitive
conditions, these ratios would be equal.
While it is difficult to predict the degree to which rate
equalization would promote waste recovery, transportation
costs represent a significant proportion of the total costs
of several recycled materials and thus can be considered
important factors in determining demand. For example,
freight costs represent 31 percent of the average delivered
price of scrap iron but only 17 percent of the delivered
price of iron ore.
The reason for the existence of rate discrimination lies
in the method of rate setting employed by the two regula-
tory agencies. While costs are considered in setting
rates, discrimination results from additional non-cost
considerations which essentially lead to prices set
according to "what the traffic will bear. " In practice,
this means that rates include a higher profit margin for
those commodities for which fewer transportation alterna-
tives exist -- the less the competition, the higher the
rate of profit. Since there tend to be few alternative
transportation modes available to scrap shippers, they
are charged higher rates.
Proposal
It is proposed that the Interstate Commerce Act and the
Shipping Act be amended to provide clear direction to the
regulatory commissions in their rate setting procedures.
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This direction would emphasize the importance of basing
freight rates on actual costs and not subsidizing more
competitive commodities through the rates charged on
less competitive commodities. The amendments would
particularly emphasize the importance of scrap materials.
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MANDATORY DEPOSIT FOR BEVERAGE CONTAINERS
The Problem
Consumption of beer and soft drink containers continues
to grow faster than population and faster than con-
sumption of the beverages themselves. Per capita
beverage container consumption rose by 164 percent
between 1959 and 1969; consumption of beer and soft
drinks rose by only 29 percent. The relative rise in
container consumption is largely explained by the
decline in the use of refillable bottles -- the average
number of fillings per container dropped from 3.7 to
1.8 from 1959 to 1969.
Beer and soft drink containers form a large and highly
visible segment of roadside litter. At least 2.2
billion beverage containers became litter in 1969,
from 20 to 32 percent of all roadside litter by item
count.
Refillable bottles are beneficial from other viewpoints.
Refillable bottles use from 41 to 74 percent less energy
and reduce air and water effluents by 30 to 71 percent.
Nonreturnable beverage cans consumed 2 million tons of
steel and 0.6 million tons of aluminum. in 1972,
representing 2 and 20 percent of industry shipments
respectively.
Proposal
Submit legislation requiring retailers to pay 5 cents
for every empty container of beer and carbonated soft
drinks. The retailer would be required to accept from
the consumer any empty container of the kind, size, and
brand sold by that retail outlet. Retailers, in turn,
could return empty containers to the distributor who
would also be required to pay the 5 cent refund.
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A mandatory deposit system does not directly prohibit
the sale of any container type. However, it forces
the consumer to pay a higher price -- equivalent to the
deposit -- for the convenience of discarding a container.
Implementation of a 5 cent mandatory deposit would
result in a reduction in beverage container litter through
decreased discards and increased scavenging. Estimates
of litter reduction are between 60 and 75 percent.
Material and energy use would be reduced, as would
water and air pollution and solid waste.
Studies in Oregon have shown that while such action
would be temporarily disruptive for the beverage container
industry, overall employment might increase slightly
due to job additions in the distribution sectors.
TOXIC SUBSTANCES
The Problem
In recent years several widely used chemicals (such as
PCB's, mercury, asbestos, and vinyl chloride) have been
discovered to be causing major damage to human health
and the environment. Given the rapid development of the
chemical industry, additional toxic substances are likely
to be discovered in the future. Controlling a toxic
chemical after marketing is extremely difficult and dis-
ruptive. Furthermore, in cases such as PCB's, no Federal
authority exists to restrict the use of toxic substances
to safe and appropriate uses.
Proposal
Resubmit the Toxic Substances Control Act which provides
authority for EPA to (1) require appropriate testing of
chemicals to identify potential hazards and (2) permits
control of the production, distribution, or use of toxic
chemicals.
Include an amendment to provide for EPA access to relevant
toxicity data already collected by companies on unmarketed
chemicals. Such information can lead to a means of
classifying and assessing the risks of similar chemical
compounds and thereby reduce the need for new tests.
HAZARDOUS WASTE DISPOSAL
The Problem
More than 10 million tons of nonradioactive hazardous
wastes are produced in the United States each year, and
the volume is growing at 5-10 percent annually. Most of
these wastes pose present or potential hazards to human
health and other living organisms. Existing Federal
legislation regulates disposal of these toxic wastes
through incineration or through dumping into waterways
or the ocean, but disposal on land is not regulated. As
a result dangerous disposal practices are occurring, and
no incentive exists for improvement in present practice.
Proposal
Resubmit The Hazardous Waste Management Act. This
legislation would give primary responsibility for regu-
lating hazardous wastes to the states, with direct
Federal regulation for a limited category of the most
hazardous wastes.
COMPREHENSIVE OIL POLLUTION LIABILITY AND
COMPENSATION ACT
The Problem
Increased waterborne transportation of petroleum and
petroleum products and accelerated development of
offshore oil resources threaten increased oil damage
to shorefront property, fisheries and other natural
resources. Even with stringent environmental controls,
the risk of oil spills and substantial financial losses
is great.
Recognizing this threat, Congress and the States have
in recent years passed a number of laws establishing
more stringent liability for damages and creating a
number of funds to compensate for damages. Examples
include the Trans-Alaska Pipeline Act, the Deepwater
Ports Act, and laws of Florida and Maine. The results
are overlapping liability systems, duplicative compen-
sation funds, and procedural uncertainties. Moreover,
the ability of a party to receive full compensation
for oil damages varies from State to State and from
Federal fund to Federal fund.
Proposal
The Council on Environmental Quality and the Interior
Department have chaired an interagency working group
which over the past four months has drafted a compre-
hensive Oil Pollution Liability and Compensation Act.
This bill would provide a single nationwide liability
system for damages from all oil discharged into the
waters of the United States, and from U.S. offshore
operations. The bill includes a simplified, no-fault
claims mechanism which will facilitate quick payment
to damaged parties. It establishes a single nationwide
fund adequate to pay all claims. The fund would be
based on a fee of approximately one cent per barrel on
all oil moved over water and by payments from those
responsible for oil discharges.
WATER POLLUTION AMENDMENTS
The Problem
OMB is taking the lead, in conjunction with EPA and
other agencies, in developing necessary amendments to
the Water Pollution Control Act. These amendments must
be transmitted to the Congress.
Proposal
Propose the amendments in the Environmental Message.
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FREON - OZONE
The Problem
Many respected atmospheric scientists are concerned that
the use of approximately 4 billion pounds per year of
freon gases as aerosol propellants may result in a deple-
tion of the protective ozone layer of the stratosphere.
A significant depletion could potentially increase the
incidence of human skin cancer, alter global climate,
and (perhaps most importantly) affect agriculture.
A research program is needed to address this potentially
important issue. Other human activity which might
similarly disturb the stratosphere should also be inves-
tigated.
Proposal
A Presidential directive to the Chairman of CEQ and the
Science Advisor to convene an interagency task force on
unintended modifications of the stratosphere. A report
on the freon situation should be requested by June 1.
This report should contain recommendations for an appro-
priate Federal response to the problem. The appropriate
agencies are prepared to carry out such a directive.
BURDEN-OF-PROOF REGARDING CANCER HAZARDS
The Problem
Diseases with long latency periods, particularly cancers,
are caused by small exposures to disease causing chemicals
over a long period of time. A dispute exists as to the
degree of proof the Government or other plaintiffs must
reach in lawsuits to abate environmental pollution which
has alleged cancer producing potential.
In United States V. Reserve Mining Co. the district court
enjoined the discharge of 67,000 tons per day of mine
tailings into Lake Superior because asbestos fibers
contained therein were entering municipal water supplies.
Asbestos is a known human carcinogen. Although it was not
possible to show present death or disease, the Court found
a substantial health hazard to exist on grounds that there
was a probability that some cancers would occur in the
population as a result of the pollution at some unknown
future date. The Court of Appeals set aside the injunction
on preliminary hearing on the ground that no demonstrable
health hazard existed, death or injury being beyond proof
because of latency period. The Supreme Court declined to
review that decision, Justice Douglas dissenting, but
ordered the Court of Appeals to have a. final decision by
January 31, 1975.
Proposal
Submit legislation to allow a prima facie case to be made
in pollution cases involving carcinogens by showing a
serious risk to public health. This would shift the
burden of proof to industry to show that the risk from
the pollution is slight, or, alternatively, that the cost
of abatement outweighs the benefits of abatement.
NON-METALLIC AND METALLIC MINE SAFETY
The Problem
The health and safety problems of the American worker is
of increasing public concern. The workplace constitutes
by far the most hazardous human environment. Significant
improvement in human health and productivity are possible
through reasonable improvements in workplace conditions.
The American workforce is protected by three major occupa-
tional health authorities: the Occupational Safety and
Health Act (OSHA), the Coal Mine Safety Act (CMSA), and
the Non-Metallic and Metallic Mine Safety Act (NMMSA)
Although not exactly parallel, OSHA and CMSA provide
comparable levels of worker protection. The now anti-
quated NMMSA is seriously inadequate and needs revision
to afford similar levels of protection.
Proposal
Sumbit a new Non-Metallic and Metallic Mine Safety Act
to give all Americans comparable protection from hazards
in the workplace.
NON-GAME WILDLIFE PROGRAM
The Problem
Hunters comprise only 5-10% of the U.S. population, and
hunted wildlife is a very small percentage of the 400
species of wild native mammals and 800 species of native
birds. However, most wildlife programs are focussed on
game species, and most funding of wildlife programs are
financed through hunting licenses and taxes.
Identified non-consumptive uses of wildlife (wildlife-
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based visits to public lands, wildlife watching, and
photography, nature study, etc. ) have increased dra-
matically, and there are strong and vocal demands by the
American public for improved management of non-hunted
wildlife, particularly on public lands and in urban-
suburban areas. In 1969 (the last year for which such
records are available) only 4% of all funds spent for
wildlife management, research and habitat acquisition
was expended for clearly non-game purposes. In FY 1975,
only an estimated 5.7% of the budget of the U.S. Fish and
Wildlife Service relates directly to non-game wildlife,
including endangered species. Hence, there is an urgent
need to develop a more balanced national wildlife manage-
ment program.
Proposal
Initiate a non-game wildlife program parallel to and
complimentary with the present, largely game-oriented
wildlife program. The program would include research,
management, and habitat acquisition at Federal and state
levels, and research and education at appropriate educa-
tional institutions.
Estimated initial needs are $12 million for Federal
agencies, $11 million for 36 states presently able to
undertake such programs, and $4 million for 115 educa-
tional institutions. Funding and leadership for the
Federal - State program would be through the Fish and
Wildlife Service, after the pattern of the long established,
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successful Pittman-Robertson and Dingell-Johnson programs.
Federal funding would come from an excise tax on selected
items of outdoor recreation equipment (such as that used
in photography, bird watching, camping, snowmobiling, etc.),
payable to General Funds but earmarked as special funds,
authorized to be appropriated for the purposes of enhanc-
ing and preserving non-game wildlife and its habitat.
Such a tax of 10% (similar to the 10-11% tax on hunting
equipment under the Pitman Robertson Act) would yield
approximately $130 million annually.
RATIFICATION OF ENVIRONMENTAL CONVENTIONS
The Problem
Since 1970, the U.S. has taken a leadership position in
negotiating international environmental conventions to
protect the oceans, wildlife, and other environmental
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matters of global concern. Legislation to provide for
formal U.S. ratification of the following conventions
must be forwarded to the Congress:
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International Convention for the Prevention of
Pollution from Ships
International Convention on Civil Liability for
Oil Pollution Damage
International Convention on the Establishment
of an International Fund for Compensation for
Oil Pollution Damage
Protocol Relating to Intervention on the High
Seas in Cases of Marine Pollution by Substances
Other Than Oil
Convention for the Conservation of Antarctic
Seals
Proposal
Include a section in the Environmental Message drawing
attention to U.S. leadership in developing international
environmental conventions and calling for prompt
Congressional action leading to ratification.