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1974/10/26 S3234 Solar Energy Research Development and Demonstration
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1974/10/26 S3234 Solar Energy Research Development and Demonstration
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The original documents are located in Box 11, folder "1974/10/26 S3234 Solar Energy Research Development and Demonstration" of the White House Records Office: Legislation Case 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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. Exact duplicates within this folder were not digitized. Digitized from Box 11 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library EXECUTIVE OFFICE OF THE PRESIDENT APPROVED OCT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 OCT 2 3 1974 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill S. 3234 - Solar Energy Research, Posted Development and Demonstration Sponsors - Sen. Humphrey (D) Minnesota and 11 others 80/01 Last Day for Action Jo aschie 10/29 October 29, 1974 - Tuesday Purpose S. 3234 establishes a Solar Energy Coordination and Management Project to conduct research, and to demonstrate the commercial use of several solar energy technologies. Agency Recommendations Office of Management and Budget Approval Federal Power Commission Approval Atomic Energy Commission Approval Federal Energy Administration Approval National Science Foundation No objection Department of Housing and Urban GERALD ? FORD Development No objection Department of the Interior No objection Department of Commerce No objection National Aeronautics and Space Administration No objection Discussion Solar energy is broadly defined in the bill as energy recently originating from the sun including: direct and indirect solar radiation and intermediate forms of energy such as wind, sea thermal gradients (differentials in ocean temperatures) photosynthetic processes (converting light to other forms of 2 energy), and conversion of organic wastes to synthetic fuels. In the findings portion of the bill, it states that research, demonstration and development of clean, renewable, and econo- mically feasible energy alternatives are particularly important in this period of depleting supplies of conventional energy resources. The findings portion of the bill further states that the Federal investment in developing clean and renewable energy alternatives may reach or exceed $1 billion. Recognition of the growing interest in solar energy research and development was reflected in the recent enactment of the Solar Heating and Cooling Demonstration Act of 1974, which authorized a coordinated program to develop and demonstrate economically feasible solar heating and cooling systems. S. 3234 would go beyond heating and cooling to much broader applications. To carry out its broad purposes, the enrolled bill would establish a Solar Energy Coordination and Manage- ment Project (Project) -- whose functions would be transferred to the Energy Research and Development Administration (ERDA) within 60 days of the effective date of the Act establishing that agency. The bill would also authorize the Project to conduct demonstrations of new categories of solar or solar- related energy. The Project would be comprised of six members -- one at the assistant secretary or comparable level from each of five agencies plus one member appointed by the President. The President would be authorized to designate any member to serve as Chairman. The Project -- and ultimately ERDA -- would have the authority to determine the extent of resources available, to conduct research, and to develop and demonstrate new technologies. The enrolled bill provides that the Project shall establish over- all management and coordination for a national solar energy re- search and development and demonstration program, and that in carrying out the program the Project shall cooperate with other Federal agencies which shall specialize in particular areas including: -- NSF - research -- NASA - management and development of technologies -- AEC - development of technologies 3 -- HUD - heating and cooling of buildings -- FPC - generation of electricity and production of synthetic fuels More specifically, the bill would provide that the Chairman shall, acting in cooperation with or acting through other agencies: -- prepare a comprehensive program definition of an integrated effort for developing solar energy. $2 million is authorized to be appropriated to NSF to be made available during fiscal year 1975 for this purpose -- initiate a program to assess the state of solar energy resources on both a national and a regional basis. This would include developing advanced instruments for col- lecting, evaluating, and disseminating data as well as predicting future resource availability. A part of the program would involve developing an inventory of as many forms of solar energy resources as possible -- initiate a research and development program designed to make commercial use of various forms of solar energy technically feasible in the United States. The problems and the forms of technology shall include: (1) direct solar heating for industrial use (2) thermal energy conversion to electricity (3) cellulose and organic waste conversion to electricity (4) photovoltaic energy and other direct con- version processes (5) windpower energy (6) energy storage 4 initiate a target program to design, construct, and demonstrate solar energy facilities or power plants to produce both electricity (on the order of one to ten megawatts each) in each technological area and commercial quantities of synthetic fuels. The bill would authorize the Chairman to either contract through appropriate Federal agencies or to act alone to develop, construct, and operate demonstration plants under certain specified criteria. The bill would further authorize the respective agencies to dispose by sale or lease of their financial interests in such plants at the conclusion of the demonstration phases of the projects establish and operate a Solar Energy Informa- tion Data Bank. A less extensive bank was established under the Solar Heating and Cooling Demonstration Act in HUD, but the transfer of this responsibility under that Act to ERDA was unclear and this bill will assure transfer of that function to ERDA support programs of science and engineering education in the solar technology area through fellowships, technical training programs, and summer institute programs establish a Solar Energy Research Institute to perform research and development functions related to this Act. Such institute could be part of existing Federal laboratories and encourage international agreements for scienti- fic cooperation by cooperating or participating jointly with other nations in research, infor- mation exchange, and other such related activities. The bill would authorize appropriations of $75 million for fiscal year 1976. Whether or not this authorization will be utilized will necessarily depend on the budgetary planning for all ERDA programs. While individual agencies would be responsible operationally for particular projects, the enrolled bill would establish an overall coordinating and managing body for a national solar energy re- search, development, and demonstration program with the objective of initiating an aggressive and comprehensive program to develop economically and technically feasible applications of solar energy. 5 The enactment of law on October 11, 1974 establishing ERDA makes much of this bill moot although there are specific program responsibilities which would be created by this bill and would be taken into account as the ERDA structure is developed. The ERDA law takes effect within 120 days of enactment, and the functions vested in Federal agencies under this bill are to be transferred to ERDA not later than 60 days after that. Although this bill is effective when signed, with one exception, all of the funds for the Project are authorized for fiscal year 1976. The exception is NSF which would be authorized $2 million for the comprehensive program definition referred to above. The effect'of the timing of the appropriation would be to have the transfer to ERDA effected before any funds are authorized for the Project beyond the NSF research funds. The enrolled bill had been intended to focus attention on and increase efforts directed toward the solar energy field in anticipation of the establishment of the more comprehensive energy program contemplated by ERDA. With the enactment of ERDA, this bill has only marginal effect on already existing authority combined with the ERDA authority. Neefred H. Ronemel Assistant Director for Legislative Reference Enclosures THE WHITE HOUSE ACTION WASHINGTON Last Day - October 29 October 25, 1974 MEMORANDUM FOR: THE PRESIDENT FROM: KEN COLE SUBJECT: Enrolled Bill S. 3234 Solar Energy Research, De- velopment and Demonstration Attached for your consideration is Senate bill, S. 3234, sponsored by Senator Humphrey, which establishes a Solar Energy Coordination and Management Project to conduct research, and to demonstrate the commercial use of several solar energy technologies. Roy Ash recommends approval and provides you with addi- tional background information in his enrolled bill report (Tab A). The Counsel's office (Chapman), Bill Timmons and Domestic Council all recommend approval. RECOMMENDATION That you sign Senate bill, S. 3234 (Tab B). FEDERAL POWER COMMISSION WASHINGTON, D.C. 20426 OCT 18 1974 ENROLLED BILL S. 3234 - 93d Congress Honorable Roy L. Ash Director, Office of Management and Budget Executive Office of the President Washington, D. C. 20503 Attention: Mrs. Louise Garziglia Legislative Reference Division Room 7201, New Executive Office Building Dear Mr. Ash: This is in response to Mr. Rommel's request of October 15, 1974, for this Commission's views on S. 3234, an Enrolled Bill, the "Solar Energy Research, Development, and Demonstration Act of 1974". The Commission is in agreement with the basic goals and the structural framework for the management of solar research and development provided in this bill. In light of its assessment of the shortages which exist in gas and electric supplies, the Commission has long advocated the need for development and utilization of solar energy as one of the new environmentally acceptable energy forms, for the coordination of solar research within the Energy Research and Development Administration (ERDA), and for the commercial utilization of the results of solar research. On July 30, 1974, before the Subcommittee on Energy, of the House Committee on Science and Astronautics, I commented more specifically on a similar proposal, H.R. 15612 (statement enclosed). REVOLUTION AMERICAN BICENTENNIAL 1776-1976 Honorable Roy L. Ash - 2 - Section 17 of the Enrolled Bill limits the amount of expenditures to be appropriated through the fiscal year ending June 30, 1976, after which subsequent sums are to be authorized by Congress. This provision allows the priorities for solar research to be defined so that before extremely large financial outlays are appropriated, government expendi- tures can be concentrated in areas which will warrant eventual private involvement. The Commission has no objection to having one of its members serve on the Solar Energy Project or in any other similar capacity to assist the Project in carrying out its responsibilities as long as the participation of FPC personnel is within the Commission's discretion. This Commission is small and our workload is intense. It is essential that the use of our vital manpower be consistent with the Commission's statutory responsibilities. Accordingly, the Commission supports the enactment of the Enrolled Bill. Sincerely, John N. Nassikas Chairman Enclosure: Statement before the Subcommittee on Energy, House Committee on Science and Astronautics, July 30, 1974 STATEMENT OF JOHN N. NASSIKAS CHAIRMAN, FEDERAL POWER COMMISSION BEFORE THE SUBCOMMITTEE ON ENERGY COMMITTEE ON SCIENCE AND ASTRONAUTICS UNITED STATES HOUSE OF REPRESENTATIVES JULY 30, 1974 Mr. Chairman, I am pleased to present my comments on your pending proposal, H. R. 15612, the "Solar Energy Research, Development and Demonstration Act of 1974.' As noted in your letter of July 18, 1974, the objective of the program this bill would establish is "to bring to commercial demonstration as soon as possible a broad spectrum of solar energy technologies." I share your view of the importance and the urgency of this proposal. Our current reliance on non-renewable fossil fuel resources must be displaced by new, inexhaustible, environmentally acceptable energy forms and technologies. Solar energy is among the most promising of these new energy forms and I support this legislation's emphasis on its expedited development and - 3 - - 2 - Power Commission, an Associate Administrator of the commercial utilization. National Aeronautics and Space Administration, and the Your letter of invitation to appear at this hearing General Manager of the Atomic Energy Commission. The specifically requested my views on (1) the administrative purpose of the Project would be to carry out the structure provided for in the bill to implement solar Congressional policy of a "vigorous and adequately R&D efforts; (2) the adequacy of the bill's approach to funded program of resource assessment, research and the funding of solar R&D; and (3) the steps necessary to development, and demonstrations, with the objective of achieve the bill's emphasis on commercial utilization of utilizing solar energy as a major source for our national the results of solar research. I will, therefore, con- energy needs." ($3) The Project would have the exclusive centrate on these aspects of the bill. authority to establish programs or projects under the Act, Administrative Structure but the programs would be carried out by the National H. R. 15612 would establish a Solar Energy Coordination Science Foundation, NASA and the AEC. Upon establishment and Management Project, composed of the Administrator of of the Energy Research and Development Administration, or an the Federal Energy Administration (who would act as equivalent agency, the National Science Foundation, Chairman of the Project), an Assistant Director of the NASA and AEC functions would be transferred to it. National Science Foundation, an Assistant Secretary of I am in basic agreement with the bill's framework Housing and Urban Development, a member of the Federal for the management of solar research and development, - 4 - - 5 - especially the placing of ultimate management responsibility R&D bills, should go forward on an expedited basis. in the Energy Research and Development Administration (ERDA) Therefore, I endorse your proposal to create without further if and when it is created. In testimony before this Committee delay a Solar Energy Coordination and Management Project in May of 1973 and again in my February 6, 1974 state- under the leadership of a policy group of Federal officials ment to this Committee on geothermal legislation, 2/ I intimately familiar with the energy and energy research emphasized that it is essential that we unify the presently needs of the Nation. I also support the bill's selection fragmented energy related activities of the Federal govern- of the National Science Foundation, NASA and the AEC as ment. In the area of energy research and development, I the agencies best equipped to move forward on solar R&D believe the Administration's proposal to establish ERDA projects under the management leadership of the Federal should be enacted and that that agency should manage officials designated as the members of the Project. These and coordinate all energy R&D programs. agencies have the facilities, the experience, and the In the interim, however, pending the creation of staff expertise to devise and implement necessary solar ERDA I share your belief, Mr. Chairman, that action on R&D programs. essential R&D programs, such as your geothermal and solar In effect, the bill provides for management by a 1/ Hearings before the Subcommittee on Energy, Committee committee of officials with full time responsibilities on Science and Astronautics, House of Representatives on the Assessment of the Energy Problem and Implications in other agencies of Government. Were it not for the for Energy R&D, May 17, 1973. interim nature of this management arrangement (pending Hearing before the Subcommittee on Energy Committee on Science and Astronautics, House of Represnetatives on HR 11212 "Geothermal Energy Research, Development and Commercial Demonstration Act of 1973," February 6, 1974. - 6 - - 7 - Also, during the period when the Project is exercising creation of ERDA) I would not endorse this aspect of the the management responsibilities under the bill it should bill because I do not believe that effective policy can be clear on the face of the legislation that the collective be formulated and administered in this manner on a per- management responsibilities specified in §5 are in fact manent basis. A matter as important as energy R&D requires being exercised on a collective basis. Sections 12, 13, full time administration such as ERDA will provide. 14, 15, 17 and 18 depart from the earlier provisions of the While the bill expressly states in §16 that the bill in that they appear to delegate extensive individual functions of the National Science Foundation and NASA will responsibilities to the Chairman of the Project independent be transferred to ERDA within sixty days of the date of the collective membership of the Project. Since presumably on which ERDA is established, it is silent with respect these sections are not intended to depart from the explicit to the continued existence of the management group, the designation of a management committee in $5, they should Solar Energy Coordination and Management Project. I be clarified to indicate that the functions and responsi- believe it should be expressly provided that the Project bilities prescribed in those sections are the collective will be terminated upon ERDA's assumption of the solar responsibility of the Project membership. R&D responsibilities of the National Science Foundation, I would like to offer one final point with respect to NASA and the AEC. It would, in my view, be inconsistent the bill's administrative structure. Section 5(d) (1) with the fundamental purpose of centralizing energy R&D specifies that the Project shall discharge its responsi- authority in ERDA to retain the Project and its management bilities in cooperation with five specific agencies, oversight responsibilities. 3/ Similarly, while I. support the provision in §13 for the creation of a Solar Energy Information Data Bank I think it should be clearly provided that if a centralized Energy Data Bank is established as now proposed the Solar Data Bank would be incorporated within it. - 9 - - 8 - Chairman of the FPC to determine when such delegation of including the Federal Power Commission. Subsection 5(d) (2) staff is consistent with our statutory responsibilities states that "[u]pon request of the Project, the head of and priorities. any such agency [including the FPC] shall detail or assign, Funding Solar R&D on a reimbursable basis or otherwise, any of the personnel It is well recognized that the cost of solar energy of such agency to the Project to assist it in carrying R&D, particularly its adaptation to the commercial pro- out its responsibilities under this Act." This provision duction of electric power, will require extremely large could be construed to deny the head of an affected agency financial outlays. Dr. Dixy Lee Ray's R&D report recommends such as the FPC of the right to exercise discretion in the a Federal expenditure of $200 million for solar R&D for FY assignment of personnel to the Project. It should be made 1975-1979, 4/ and the National Science Foundation budget for FY clear in the bill that the assignment of personnel is with- 1975 provides $50 million for solar research. in the discretion of the agency involved. The workload on The Technical Advisory Committee on R&D of the FPC's our Commission, for example, is intense and I believe I current National Power Survey has recommended the ex- must have the discretion to decide when and on what penditure of $885 million for solar energy R&D over the terms we can spare our staff members for other activities. next ten years. Table 1 contains the Advisory Committee's I hasten to add that I would cooperate with the Project specific solar R&D funding recommendations by program to the fullest extent possible in all respects, including priorities, funding sources, total program costs, duration the delegation of FPC personnel to assist in the Project's The Nation's Energy Future, A Report to Richard M. Nixon, President of the United States, submitted by Dr. Dixy work, but it is essential to my responsibilities as Lee Ray, Chairman AEC, 1 December 1973. - 11 - - 10 - be concentrated in those areas where the amount of required and end product. investment is so large or the risks of commercial success In addition, as you noted in your June 27, 1974 are so speculative so as not to warrant substantial private in- statement to the Senate Interior Committee on S.3234, vestment as a matter of management responsibility. For example, the Solar Energy Research Act of 1974, the $600 million there are areas of solar R&D that are long-range in scope, figure for an initial six-year solar R&D effort provided such as central-station solar power generation. Therefore, for in that bill is also a reasonable estimate of the the Electric Power Research Institute (EPRI), the electric level of funding required. utility industry's R&D organization, has thus far not Ultimately, I believe hundreds of millions will be concentrated its efforts in this area. On the other hand, the well invested in solar R&D programs. For the moment, application of solar energy to space heating and cooling however, I support your concept in H.R. 15612 to provide is a fairly well-proven technology and because commercial for an initial $2 million appropriation for the preparation utilization is a strong near-term possibility private of a comprehensive solar R&D program definition in fiscal enterprise can and should be expected to provide a sub- 1975 with future funding levels contingent on the results stantial portion of the funds necessary to bring the of that evaluation. technology to the market place. An evaluation of necessary funding levels for solar Therefore, in order to resolve the appropriate R&D should include an assessment of the contribution source and level of solar R&D funding I support your con- that should be made by the private sector. In general, cept in H.R. 15612 in defining our goals and priorities it is my belief that Federal R&D expenditures should - 12 - - 13 - before specifying the level of Federal commitment. too inflexible. It would appear to me' that in keeping Commercial Utilization with the bill's emphasis on expediting those solar I concur in H.R. 15612's emphasis on "resolving the major technologies most likely to achieve commercial success and technical problems inhibiting commercial utilization of environmental acceptability that the language of $10(a) solar energy in the United States." ($9(a)) We are most should be discretionary in order to allow those charged in need of practical, workable energy alternatives to our with management responsibilities to concentrate more of the current unavoidable preoccupation with the supply of Project's talent and funds in areas most likely to result fossil fuel resources. Therefore, I also agree with in successful commercial applications in the near future. the directive in $10(B)(5) of the bill that "[i]n In fact, the prospect of successful commercial de- selecting solar energy technologies for demonstration velopment of some aspects of solar research is so under this section, preference shall be given to those promising that I would recommend that a priority for these with the best opportunity for commercial success and projects be included in the bill itself. Specifically, environmental acceptability." the use of solar energy for space heating, hot water heating In this regard, I would like to suggest, Mr. Chairman, and air conditioning of buildings is technologically that the mandatory language of $10(a) to the effect that feasible and, in most areas of the country, economically the Project shall initiate a demonstration project for justifiable. There are no major technical problems each specific solar energy technology listed in §9 may be precluding the adoption of solar energy for these - 14 - - 15 - purposes. Moreover, the quantity of primary fuel which acceptance of solar energy systems, especially for heating could be saved by applying solar energy to these serv- and cooling systems for homes, where drastic changes in ices is immense. For example, hot water heating in architectural design will almost certainly be required. residences and commercial buildings uses more than four This concludes my formal comments, Mr. Chairman. times as much fuel as all the aluminum refining done in I will be pleased to respond to any questions. the U. S., and it may be feasible to provide 50 percent or so of our national hot water requirement through solar energy. I would, therefore, recommend that the application of solar energy to space heating, hot water heating and air conditioning receive especially strong emphasis in this legislation. I would like to stress another point in this respect. One of the essential prerequisites to commercial success of a technological innovation is public acceptance. I would suggest, therefore, that this legislation provide for a public information program to promote market TABLE 1 * TAC-R&D RECOMMENDATIONS FOR SOLAR ENERGY, 1975-1984 (Millions of 1973 Dollars) Funding Total Program Cost, Priority Sources 1975-79 1980-84 Duration, and End Product IMPROVEMENT OF PRESENT TECHNOLOGY Solar Space Heating and A 1 50 - Commercial introduction in 1979 Cooling DEVELOPMENT OF FUTURE ENERGY SOURCES Solar Thermal Electric B 1 41 183 Central station pilot plant, Conversion 1989; $1150 M/15 yrs. Photovoltaic Conversion B 1 47 130 Central station pilot plant, 1989; $315 M/15 yrs. Photosynthesis of Organics and Hydrogen C 1 89 176 Pilot plant, 1989; $370 M/15 yrs. Effluent Control C 1,2,3 24 20 Wind Power Generator D 1 25 - Exp. development Ocean Delta T D 1 25 75 Pilot plant; $100 M/10 yrs. TOTALS 301 584 Allocation: U. S. Government 285 571 Elec. Util. Industry 6 5 Other Industry 10 8 GRAND TOTAL: 885 KEY Funding Sources: 1 - U. S. Government Priority: 2 - Electric Utility Industry A - Potentially high impact on the energy system if 3 - Other Industry successful and most worthy of R&D support. B - Potentially lower impact but should be included * Research and Development for the in a balanced R&D program. Electric Utility Industry, C - Could contribute to the achievement of R&D goals Final Draft of the Report to the and merits R&D support if funds are available. Federal Power Commission of the D - Marginal worth for R&D support. TAC on R&D, April 1974, page 2.6. FEDERAL POWER COMMISSION Biographical Release of John N. Nassikas, Chairman Federal Power Commission February 1974 John N. Nassikas, Republican, of New Hampshire Took Office: First term, August 1, 1969; Second term, May 21, 1970 Term Expires: June 22, 1975 John N. Nassikas was born in Manchester, New Hampshire on April 29, 1917. He attended public schools in Manchester, and received his A. B. degree (with distinction in his major subject of sociology) from Dartmouth College in 1938. He then attended the Harvard Graduate School of Business Administration where he received his M. B. A. degree in 1940. He entered the U.S. Naval Reserve in June 1942 as an Ensign and served until January of 1946. He held the rank of Lt. senior grade, when he returned to inactive duty. Mr. Nassikas then entered Harvard Law School in 1946, receiving his J.D. degree in 1948. He received an Honorary Doctor of Laws degree from Notre Dame College in Manchester, New Hampshire, in June 1972. He entered private law practice in 1948, and from July of 1950 to September of 1953 served as Assistant and Deputy Attorney General of the State of New Hampshire. He was a senior partner of Wiggin, Nourie, Sundeen, Nassikas & Pingree from 1953 to 1969. Mr. Nassikas served as chief counsel for the Republican Minority of the U.S. Senate Committee on Commerce from March 1968 to February 1, 1969. Mr. Nassikas' specialized public utility experience includes: State's Counsel in litigated rate cases before New Hampshire Public Utilities Commission and New Hampshire Supreme Court, 1950-53; special counsel to the New Hampshire Public Utilities Commission in 1961 and 1962 on telephone rates; and special counsel for the State of New Hampshire in 1958 and 1959 on electric power rates; trial and appellate practice, State and Federal Regulatory Agencies and Courts. He is admitted to practice in New Hampshire, Massachusetts, Supreme Court of the U.S., U.S. District Courts of New Hampshire, Vermont, and the U.S. District Court for the District of Columbia, First Circuit Court of Appeals. -2- He is a member of the New Hampshire, Massachusetts and American Bar Associations. He also is a member of the Newcomen Society in North America, Ahepa, Bald Peak Colony Club, Congressional Country Club, and the Prouts Neck Country Club. A Republican, Mr. Nassikas' nomination as a member and Chairman of the Federal Power Commission was announced by President Nixon on May 19, 1969. The nomination was sent to the Senate on May 20 where it was confirmed on June 17. He took office on August 1, 1969, for the term expiring June 22, 1970. President Nixon nominated Chairman Nassikas for reappointment to a full five- year term on March 23, 1970. The nomination was confirmed by the Senate on April 30, and he took the oath of office on May 21, 1970. Chairman Nassikas is a member of the Water Resources Council (serving as Vice Chairman from July 1, 1970 to June 30, 1971); member of the Board of Directors, U.S. National Committee of the World Energy Conference; member of the Administrative Conference of the United States and also serves on its Rulemaking Committee; and a member of the Executive Committee of the National Association of Regulatory Utility Commissioners. He served on the President's Cabinet Task Force on Oil Import Control (1969-1970); is a member of the Energy Subcommittee of the Domestic Council; a member of the President's Joint Board on Fuel Supply and Fuel Transport; Member of the Energy-Related Regulatory Agency Study Committee; a member of the Council of the Greek Orthodox Archdiocese of North and South America (1970-1972); and serves as a member of the Executive Advisory Council of Junior Achievement of Metropolitan Washington. He also is a member of the Council of the National Harvard Law School Association, and a member of the Board of Directors of The Madeira School. Mr. Nassikas is married to the former Constantina Andreson of Worcester, Massachusetts. They have four children: Constance (Mrs. John J. Hohenadel, Jr. ) of Woodside, California; Mary (Mrs. Robert C. Hall) of McLean, Virginia; and Elizabeth, age 20, and John N. III, age 15, of the home address. Mr. Nassikas is currently a resident of McLean, Virginia. -FPC- ATOMIC ENERGY COMMISSION UNITED STATES ATOMIC ENERGY COMMISSION WASHINGTON, D.C. 20545 UNITED STATES OF MEMBER 00T ? 1974 Mr. Wilfred H. Rommel Assistant Director for Legislative Reference ATTN: Mrs. Louise Garziglia Legislative Reference Division Office of Management and Budget Dear Mr. Rommel: The Atomic Energy Commission is pleased to respond to your request for our views on Enrolled Bill S. 3234, the "Solar Energy Research, Develop- ment, and Demonstration Act of 1974." The AEC recommends approval of S. 3234. While the bill is not essential to initiation of a broad solar program in view of the enactment of H.R. 11510 establishing the Energy Research and Development Administration, the solar project contemplated by S. 3234 would in essence be taken over by ERDA in the near future and would provide a base for going forward effectively with a program. The bill (Section 4) would establish the Solar Energy Coordination and Management Project, composed of six members, five of whom would be high officials of Federal agencies. The President would appoint the remaining member, and would designate a member as Project Chairman. The Project would be responsible for the management and coordination of a national solar energy research, development, and demonstration program, in cooperation with the National Science Foundation, the National Aeronautics and Space Administration, the Atomic Energy Commission, the Department of Housing and Urban Development, and the Federal Power Commission. The Project would have exclusive authority respecting the establishment or approval of programs or projects initiated under the Act, while the agency involved would operate and administer the particular project. Section 5 of the bill would require initiation by the Project Chairman of a solar energy resource determination and assessment program, utilizing such agencies as the National Aeronautics and Space Administration and the National Oceanographic and Atmospheric Administration. Section 6 would mandate a solar energy research and development program, under which the Project Chairman would conduct scientific, economic, Mr. Wilfred H. Rommel -2- social, and environmental studies. Eight specified solar energy technologies would have to be addressed in the research and development program. Other technologies, however, would not be precluded. Under Section 7 of S. 3234, the Project Chairman would be authorized to initiate a program to demonstrate specific solar energy technologies. Demonstration projects would be carried out through appropriate Federal agencies, and could involve cooperative agreements with either Federal agencies or non-Federal organizations. Section 8 would require the establishment of a Solar Energy Information Data Bank, for use by interested Federal and other governmental agencies, educational institutions, and the private sector. Section 9 deals with the support, through the National Science Foundation, of relevant educational programs in the sciences and engineering. A Solar Energy Research Institute would be established by Section 10, to carry out research, development, and other functions under the bill, as determined by the Project Chairman. Section 11 would authorize the Chairman to cooperate with other nations in both solar energy projects and information exchange. The National Science Foundation would encourage international participation in the educational programs authorized under Section 9. Sections 12, 13, and 14 deal, respectively, with the issuance of implementing regulations, annual reports to Congress, and the furnishing of information to the appropriate committees of the House and the Senate. Section 15 would require the Project Chairman to prepare a comprehensive program definition of an integrated effort and commitment for effectively developing solar energy resources. An interim report on the program definition would have to be sent to the President and to each House of Congress by March 1, 1975, with the program definition to follow no later than June 30, 1975. Section 16 of S. 3234 provides for the transfer of authorities and functions to the permanent Federal agency for energy research and development, within sixty days after the effective date of the law creating that agency. (By virtue of the President's approval of H.R. 11510 on October 11, 1974, the described agency will come into being no later than February 8, 1975, as the Energy Research and Development Administration.) All of the authorities of the Project, Mr. Wilfred H. Rommel -3- all of the research and development functions, and other functions except those related to scientific and technical education, to be vested in Federal agencies under S. 3234, along with related records, documents, personnel, obligations, and other items, to the extent necessary or appropriate, would under regulations prescribed by the Office of Management and Budget be transferred to and vested in ERDA. Finally, Section 17 of S. 3234 would authorize appropriations to carry out the bill's purposes. Specific amounts authorized are $75,000,000 for FY 1976, and not to exceed $2,000,000 to the National Science Foundation for FY 1975 for use in the preparation of the comprehensive program definition under Section 15. The Atomic Energy Commission recommends approval of S. 3234. It is much more comprehensive in scope than the recently approved Solar Heating and Cooling Demonstration Act of 1974 (P.L. 93-409). There is no question as to the desirability of the broad objectives of S. 3234. While its enactment is not essential to the initiation of a broadly based, meaningful solar energy program, in view of the treatment of that subject in the ERDA legislation, the various aspects of the solar program dealt with in S. 3234 present a base on which ERDA, soon after coming into being, can go forward effectively. Sincerely, Chairman FEDERAL ENERGY ADMINISTRATION WASHINGTON, D.C. 20461 October 17, 1974 MEMORANDUM TO: Wilfred H. Rommel Assistant Director for Legislative Reference Office of Management and Budget Washington, D.C. 20503 ATTN: William V. Skidmore FROM: Robert E. Montgomery, Jr. General Counsel SUBJECT: Enrolled Bill S. 3234 "To authorize a vig- orous Federal program of research, develop- ment, and demonstration to assure the util- ization of solar energy as a viable source for our national energy needs, and for oth- er purposes. " This responds to your request for the views of the Federal Energy Administration on the subject enrolled bill. S. 3234 would establish a Solar Energy Coordination and Man- agement Project to exercise central responsibility for man- aging and coordinating a national solar energy research, de- velopment, and demonstration program. In carrying out its general functions, the project would utilize the services of NASA, NSF, AEC, HUD, FPC, and other cognizant Federal agencies. Sixty days after the effective date of the Energy Reorganiza- tion Act of 1974, all authorities, functions, and duties of the project would be transferred to the Energy Research and Development Administration. FEA recommends that the President sign S. 3234 into law. NATIONAL SCIENCE FOUNDATION WASHINGTON, D.C. 20550 nsf October 17, 1974 OFFICE OF THE DIRECTOR Mr. Wilfred H. Rommel Assistant Director for Legislative Reference Office of Management and Budget Washington, D. C. 20503 Dear Mr. Rommel: This is in reply to your communication of October 15, 1974, requesting the views of the National Science Foundation on Enrolled Bill S. 3234, the Solar Energy Research, Development, and Demonstration Act of 1974. The Foundation has no objection to approval by the President of Enrolled Bill S. 3234. Sincerely yours, LISEARY GERALD B. FORD H. Guyford Stever Director DEPARTMENT OF HOUSING * THE GENERAL COUNSEL OF HOUSING AND URBAN DEVELOPMENT AND URBAN WASHINGTON, D. C. 20410 OCT 22 1974 Mr. Wilfred H. Rommel Assistant Director Legislative Reference Office of Management and Budget Washington, D. C. 20503 Attention: Mrs. Garziglia Dear Mr. Rommel: Subject: S. 3234, 93d Congress, Enrolled Enactment This is in response to your request for our views on the enrolled enactment of S. 3234, the proposed "Solar Energy Research, Development, and Demonstration Act of 1974". The enrolled enactment would establish a Solar Energy Coordination and Management Project composed of representa- tives of NSF, HUD, The Federal Power Commission, NASA, AEC and a member designated by the President. The Project would be responsible under the enactment for providing effective management and coordination of a national solar energy research development and demonstration program in cooperation with the Federal agencies whose members constitute the Project. It would have exclusive authority for establishment or approval of programs or projects initiated under the enactment, but the agency involved in any particular program or project would be responsible for its operation or administration. In this connection, the enactment would require initiation of programs for (1) determining, inventorying, and assessing solar energy resources -- emphasizing identification of pro- mising areas for commercial exploration and development and (2) research and development to resolve major inhibitions of a technical nature to commercial utilization of solar 2 energy. It would authorize the design, construction and operation of demonstration facilities in specific solar energy techologies. The enactment would require establishment of a Solar Energy Information and Data Bank and a Solar Energy Research Institute, and the preparation of a comprehensive program definition for effectively developing solar energy resources to be transmitted to the President and Congress by June 30, 1975, with an interim report to be transmitted by March 1. Significantly, the Project's authority and the research and development functions vested in other Federal agencies under the enactment would, "to the extent necessary or appropriate", be transferred within three months to the new Energy Research and Development Administration created under the recently enacted "Energy Reorganization Act of 1974" (H. R. 11510). The transfer would be accomplished in accordance with OMB regulations. HUD's potential contribution under the enactment represents only a single aspect of the total research and development effort to be undertaken under the bill. We would defer to TORO other Federal agencies specified in the bill as to the desirability of those provisions which directly affect them or involve matters within their larger expertise and juris- diction. As to those provisions affecting this Department, Section 4(c) of the enactment specifically includes "fostering the utili- zation of solar energy for the heating and cooling of buildings, pursuant to the Solar Heating and Cooling Demonstration Act of 1974 (P. L. 93-409)' as part of HUD's responsibilities under the enactment. While we are unclear as to what is actually intended by this provision, we would not, in any event, interpret the enactment as providing for the transfer of these functions to the Energy Research and Development Administration, since they are vested in HUD under the P. L. 93-409 rather than under the enactment. Also of interest to this Department is the Solar Energy Information Data Bank discussed above. Under P. L. 93-409, 3 this Department is directed to undertake a program to disseminate information concerning solar heating and cooling of buildings, including the establishment and operation of a Solar Heating and Cooling Information Data Bank. We feel, however, that any potential duplication of efforts in this regard under P. L. 93-409 and the enactment could be avoided. Section 8 (a) (4) of the enactment requires utilization of the existing data base of information in Federal agencies, and coordination or merging of the data bank under the enactment with other Federal energy information data banks as necessary to insure efficient and effective operation. In view of the above, the Department has no objection to the approval of S. 3234 by the President. Sincerely, Robert R. Elliott FORD LIBRARY OF THE INTERIOR United States Department of the Interior OFFICE OF THE SECRETARY March 1849 WASHINGTON, D.C. 20240 3, OCT 1974 Dear Mr. Ash: This responds to your request for our views concerning S. 3234, an enrolled bill "To authorize a vigorous Federal program of research, development, and demonstration to assure the utilization of solar energy as a viable source for our national energy needs, and for other purposes", which is before the President for approval. We do not object to Presidential approval of the bill. S. 3234 would provide for a program of solar energy research, development and demonstration. By virtue of the enactment of H.R. 11510, the Energy Reorganization Act of 1974, on October 11, 1974, the Energy Research and Development Administration would be responsible for the Solar Energy Coordination and Management Project which the bill would establish. Among other matters, the bill would require the development of a "comprehensive program definition", with an interim report to the President and Congress being due March 1, 1975 and the final definition being prepared not later than June 30, 1974. It would also require ERDA to develop a solar energy data bank and to establish a solar energy research institute. The bill authorizes $2 million for the National Science Foundation to prepare the definition. In addition, $75 million is authorized to carry out provisions of the Act for FY 1976, and the bill specifically reserves for later authorization amounts for subsequent fiscal years and for major demonstration projects. In view of the consolidation of the bill's solar energy program with other ERDA programs, we would anticipate that several problems of coordination and efficient use of resources which might otherwise arise in the implementation of S. 3234 can be satisfactorily dealt with. Thus, we would expect that the bill's directive in section 5(b) that the Project undertake solar resource assessment and, specifically, that it make recommendations for legislation to CONSERVE AMERICA'S ENERGY Save Energy and You Serve America! establish policies for solar resources involving Federal lands and waters would be implemented through and in coordination with this Department, particularly the Geological Survey, the Bureau of Land Management and the Bureau of Mines. Similarly, the Department of the Interior's synthetic fuels, conversion of organic materials for energy uses, and metallurgical research programs should be utilized in solar energy programs and should not be duplicated by ERDA. Notwithstanding the long-range potential of solar energy, the funding and scope of the bill's program are greater than is currently desirable. Current energy priorities preclude appropriation of the $75 million FY 1976 appropriation provided by the bill or current planning for a possible $1 billion solar energy program called for by section 2 of the bill. Despite the breadth of the program envisaged by the bill and the fact that the Energy Reorganization Act of 1974 appears to provide adequate authority to carry out needed solar research, we believe that S. 3234 is sufficiently flexible so that its enactment would not have seriously objectionable results from the standpoint of this Department's direct responsibility or with respect to overall energy policy. Sincerely yours, Assistant Jack Secretary WCarlson of the Interior Honorable Roy L. Ash Director Office of Management and Budget Washington, D. C. 20503 EFORA 2 DEPARTMENT OF COMMERCE GENERAL COUNSEL OF THE UNITED STATES OF AMERICA DEPARTMENT OF COMMERCE Washington, D.C. 20230 OCT 21 1974 Honorable Roy L. Ash Director, Office of Management and Budget Washington, D. C. 20503 Attention: Assistant Director for Legislative Reference Dear Mr. Ash; This is in reply to your request for the views of this Department concerning S. 3234, an enrolled enactment "To authorize a vigorous Federal program of research, development, and demonstration to assure the utiliza- tion of solar energy as a viable source for our national energy needs, and for other purposes, 11 to be cited as the "Solar Energy Research, Development, and Demonstration Act of 1974. 11 Subject to the comments below concerning sections 4 and 16, this Department would have no objection to approval by the President of S. 3234. Section 4 establishes a Solar Energy Coordination and Management Project. The Management Project is composed of six members: an Assistant Director of NSF; an Assistant Secretary of HUD; a member of the FPC; an Associate Administrator of NASA; a General Manager of AEC; and a member to be designated by the President. It is our opinion that this section creates an unwieldy organizational structure and would be difficult to administer effectively. Section 16 requires that all authorities of the Management Project and of the research and development functions vested in Federal agencies under this Act, along with related records, documents, personnel, obligations, and other items, to the extent necessary or appropriate in accordance with regulations prescribed by OMB, be transferred to and vested in ERDA. It is our opinion that section 16 is unclear in its impact on the Manage- ment Project set out in section 4. 2. If section 16 is interpreted so as to abolish the Management Project and place its functions in the Administrator of ERDA, we have no objection. Under such an interpretation, in effect throughout S. 3234, the words "Administrator of ERDA" would be substituted for the words "Solar Energy Coordination Management Project" and "Chairman of the Project. 11 However, if section 16 is not so interpreted and the Management Project remains in existence as an independent organization, it would be incompatible with the responsibilities of the Administra- tor of ERDA and present an unworkable situation. Accordingly, if this is the effect of section 16, we believe a veto of S. 3234 would be warranted. Finally, we interpret section 16 as only providing for the transfer of functions which are specifically vested in Federal agencies pursuant to the Act and that functions and authorities of agencies preexisting by virtue of other authorities would not be transferred. The authorities and functions of this Department, for example, those relating to meteorological and oceanographic survey work referred to in section 5(b) which we have traditionally carried out, would not be transferred but would continue to be performed by this FORD Department. If section 16 is not so interpreted, we would urge this as warranting a veto since, if interpreted otherwise, it would foster fragmentation and dispersal of agencies' preexisting authorities and functions with attendant inefficiencies. Section 8 of the Act directs the Chairman of the Management Project to utilize the capabilities of this Department to establish and operate a Solar Energy Information Data Bank for the purpose of collecting, reviewing, processing, and disseminating information and data in all of the solar energy technologies referred to in the Act. In view of the fact that the Chairman is also directed to utilize other Federal agencies, we are unable to determine the extent of the responsibilities to be placed upon this Department and, therefore, cannot estimate the cost of such a program to this Department. Sincerely, Karl E. Bakke General Counsel AND SPACE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WASHINGTON, D.C. 20546 NATIONAL U.S.A OFFICE OF THE ADMINISTRATOR OCT 17 1974 Director Office of Management and Budget FORD Executive Office of the President Washington, DC 20503 Attention: Assistant Director for Legislative Reference Subject: Enrolled Enactment Report on S. 3234, 93rd Congress. This is an Enrolled Enactment report on S. 3234, "To authorize a vigorous Federal program of research, development, and demonstration to assure the utilization of solar energy as a viable source for our national energy needs, and for other purposes." It is submitted pursuant to Mr. Wilfred H. Rommel's memorandum of October 15, 1974. The Enrolled Bill would establish the Solar Energy Coordination and Management Project. The Project would be composed of six members: the Assistant Director of the National Science Foundation (NSF) ; an Assistant Secretary of Housing and Urban Development (HUD) ; a member of the Federal Power Commission (FPC) ; an Associate Administrator of the National Aeronautics and Space Administration (NASA) ; the General Manager of the Atomic Energy Commission (AEC) ; and a sixth appointed by the President. The President would also designate one member to serve as Chairman. The functions of the Project would be to manage and coordinate the nation's research, development, and demonstration program in solar energy. This program would include a determination and evaluation of the resource base in solar energy, research and development in eight listed technologies, and demonstra- tions of those technologies as they are appropriate. In addition, the Project is to cooperate and participate jointly with other nations in solar energy research and to facilitate information exchange on solar energy resources and technologies. 2 The Enrolled Bill would establish the Solar Energy Research Institute to perform such research, development and related functions as the Project may determine are necessary. The Institute may be located at any new or existing Federal or Federally-contracted laboratory as designated by the Project. The Project would accomplish its objectives by assigning various management, research, development and demonstration roles in the program to NASA, HUD, AEC, NSF and FPC. The agencies themselves would be responsible for the operation and administration of programs and projects assigned to them by the Project. To get the program underway, the Project is first directed to prepare a comprehensive program definition of an inte- grated effort for effectively developing solar energy resources. The conferees on the Bill said that, "the Project member agencies as well as the Federal Energy Administration, the National Oceanic and Atmospheric Administration, and any other appropriate agencies, should cooperate in the compre- hensive program definition." The Project would be required to submit this program plan to the President and to the Congress no later than June 30, 1975. The Enrolled Bill contains provisions requiring the transfer of R&D functions vested in Federal agencies under the Bill (excluding the education programs) to the Energy Research and Development Administration (ERDA) within sixty days after the "effective date" of the law creating that Adminis- tration, and as provided for by regulations prescribed by the Office of Management and Budget. The President approved the ERDA legislation on October 11, 1974, and that law provides that it "shall take effect one hundred and twenty days after the date of its enactment" unless the President prescribes an earlier date. It therefore appears that legally the trans- fer of functions of the Project to ERDA would have to take place at the latest within one hundred and eighty days from the date the ERDA legislation was approved, although as a practical matter, we assume that the specific functions of the Bill (e.g., the establishment of a Solar Energy Informa- tion Data Bank) would be taken into account in the initial organization of ERDA. Assigning NASA the responsibility to provide management capability and to participate in the development of technologies, as the Enrolled Bill provides, would draw upon NASA's experience and capabilities. During the past year or more, NASA has 3 actively supported National energy planning, with such efforts as last year's initial Solar Energy Report, jointly supported by NSF and NASA. Last fall, NASA provided technical support to the formulation of the President's Five-Year Energy R&D Plan prepared under the leadership of Chairman Ray of the Atomic Energy Com- mission. In addition, NASA has been working for some time in cooperation with NSF to assist them in broad areas of their solar energy programs. Using funds transferred from NSF, NASA already has initiated work in the conversion of wind energy to power. We also are working actively with the NSF to define appropriate NASA project responsibilities in the areas of low cost' solar cell systems and solar heating and cooling technology. An additional number of project proposals have been submitted to NSF for inclusion in the President's Five-Year Program Plans for the solar energy program area. In a related area, NASA, in cooperation with the AEC, has been defining possible energy storage research projects as part of the President's Five-Year Program Plan in Energy Storage. Energy storage is a very critical element in the eventual success and commercial viability of most solar energy-use concepts. NASA and HUD, in consultation with other agencies, are now in the process of formulating a comprehensive program plan to demonstrate the use of solar energy for the heating and cooling of residential buildings under the Solar Heating and Cooling Demonstration Act of 1974. Under section 7 of that Act such a plan must be transmitted to the Congress by January 1, 1975. NASA, in consultation with other agencies, is also developing a program plan under that Act for the heating and cooling of commercial buildings. Finally, NASA, on its own, has several active projects related to solar energy. This work includes both the terrestrial applications of our technology base in energy conversion and environmental control and the examination of critical tech- nologies related to satellite power systems. The Enrolled Bill would authorize to be appropriated to NSF $2,000,000 for FY 1975 to be used by the Project for the specific purpose of preparing the comprehensive program defi- nition; $75,000,000 has been authorized for FY 1976 without specific direction for its use. 4 As you know, no funds for the NASA functions under this Enrolled Bill are provided in either the Special Energy Research and Development Appropriations Act of 1974 (PL 93-322) or in the FY 1975, HUD, Space, Science, Veterans Appropriations Bill (PL 93-414). Thus, if the Enrolled Bill is approved and NASA were assigned responsibilities under the Bill, NASA would require additional funding and manpower to accomplish the tasks assigned to it. The Enrolled Bill was under consideration by the Congress con- currently with its consideration of the ERDA legislation, and many of the functions authorized in the Bill could be carried out under the broad authority conferred upon ERDA. From NASA's viewpoint, both the Enrolled Bill and the ERDA legislation contem- plate that NASA's R&D capabilities will be employed in the National energy R&D program. For example, the Senate Report accompanying the ERDA bill, in explaining the intent of what is now section 104 (i) of the Act, specifically mentioned NASA's capabilities in solar energy. We believe that these capabilities can and should be effectively utilized by ERDA in carrying out the functions which would be transferred to it under the Enrolled Bill. The National Aeronautics and Space Administration has no objection to approval of the Enrolled Bill S. 3234. Sincerely, George w Low FORD for James C. Fletcher Administrator ACTION Last Day - October 29 October 25, 1974 MEMORANDUM FOR: THE PRESIDENT FROM: KEN COLE SUBJECT: Enrolled Bill 8. 3234 Solar Energy Research, De- velopment and Demonstration Attached for your consideration is Senate bill, S. 3234, sponsored by Senator Humphrey, which establishes a Solar Energy Coordination and Management Project to conduct research, and to demonstrate the commercial use of several solar energy technologies. Roy Ash recommends approval and provides you with addi- tional background information in his enrolled bill report (Tab A). The Counsel's office (Chapman), Bill Timmons and Domestic Council all recommend approval. RECOMMENDATION That you sign Senate bill, 8. 3234 (Tab B). GLEATE FORD VIBRAGA THE WHITE HOUSE WASHINGTON October 24, 1974 MEMORANDUM FOR: MR. WILLIAM WARREN E. TIMMONS HENDRIKS FROM: SUBJECT: Action Memorandum - Log No. 698 Enrolled Bill S. 3234 - Solar Energy Research, Development and Demonstration The Office of Legislative Affairs concurs in the attached proposal and has no additional recommendations. Attachment FORD is LIBRARY 07V830 THE WHITE HOUSE ON MEMORANDUM WASHINGTON LOG NO.: 698 Date: October 23, 1974 Time: 6:00 p.m. FOR ACTION: Michael Duval CC (for information): Warren K. Hendriks Phil Buchen Jerry Jones Bill Timmons Paul Theis Glenn Schleede FROM THE STAFF SECRETARY DUE: Date: Friday, October 25, 1974 Time: 2:00 p.m. SUBJECT: Enrolled Bill S. 3234 - Solar Energy Research, Development and Demonstration ACTION REQUESTED: For Necessary Action XX For Your Recommendations Prepare Agenda and Brief Draft Reply For Your Comments Draft Remarks REMARKS: Please return to Kathy Tindle - West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren K. Hendriks telephone the Staff Secretary immediately. For the President THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 698 Date: October 23, 1974 Time: 6:00 p.m. FOR ACTION: Michael Duval CC (for information): Warren K. Hendriks Phil Buchen Jerry Jones Bill Timmons Paul Theis Glenn Schleede FROM THE STAFF SECRETARY DUE: Date: Friday, October 25, 1974 Time: 2:00 p.m. SUBJECT: Enrolled Bill S. 3234 - Solar Energy Research, Development and Demonstration ACTION REQUESTED: For Necessary Action XX For Your Recommendations Prepare Agenda and Brief Draft Reply For Your Comments Draft Remarks REMARKS: OK Wile Dwal 10/24 Please return to Kathy Tindle - West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren K. Hendriks telephone the Staff Secretary immediately. For the President THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 698 Date: October 23, 1974 Time: 6:00 p.m. FOR ACTION: Michael Duval CC (for information): Warren K. Hendriks Phil Buchen Jerry Jones Bill Timmons Paul Theis Glenn Schleede FROM THE STAFF SECRETARY DUE: Date: Friday, October 25, 1974 Time: 2:00 p.m. SUBJECT: Enrolled Bill S. 3234 - Solar Energy Research, Development and Demonstration ACTION REQUESTED: For Necessary Action XX For Your Recommendations Prepare Agenda and Brief Draft Reply For Your Comments Draft Remarks REMARKS: Please return to Kathy Tindle - West Wing No objection D.C. PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Warren K. Hendriks telephone the Staff Secretary immediately. For the President MEMORANDUM THE WHITE HOUSE WASHINGTON ACTION Last Day - October 29 MEMORANDUM FOR: THE PRESIDENT FROM: KEN COLE SUBJECT: Enrolled Bill S. 3234 Solar Energy Research, Development and Demonstration Attached for your consideration is Senate bill, S. 3234, sponsored by Senator Humphrey, which establishes a Solar Energy Coordination and Management Project to conduct research, and to demonstrate the commercial use of several solar energy technologies. Roy Ash etc. cDan C- The Counsel's office (Chapman) and Bill Timmons both recommend approval. RECOMMENDATION That you sign Senate bill, S. 3234 (Tab B). GREATO 8.FORD VIDRAGE THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 698 Date: October 23, 1974 Time: 6:00 p.m. FOR ACTION: Michael Duval CC (for information): Warren K. Hendriks Phil Buchen Jerry Jones Bill Timmons Paul Theis Glenn Schleede FROM THE STAFF SECRETARY DUE: Date: Friday, October 25, 1974 Time: 2:00 p.m. SUBJECT: Enrolled Bill S. 3234 Solar Energy Research, Development and Demonstration ACTION REQUESTED: For Necessary Action XX For Your Recommendations Prepare Agenda and Brief Draft Reply For Your Comments Draft Remarks REMARKS: Please return to Kathy Tindle - West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please K.R. COLE, JR. telephone the Staff Secretary immediately. For the President Handride EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 OCT 23 1974 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill S. 3234 - Solar Energy Research, Development and Demonstration Sponsors - Sen. Humphrey (D) Minnesota and 11 others Last Day for Action October 29, 1974 - Tuesday Purpose S. 3234 establishes a Solar Energy Coordination and Management Project to conduct research, and to demonstrate the commercial use of several solar energy technologies. Agency Recommendations Office of Management and Budget Approval Federal Power Commission Approval Atomic Energy Commission Approval Federal Energy Administration Approval National Science Foundation No objection Department of Housing and Urban Development No objection Department of the Interior No objection Department of Commerce No objection National Aeronautics and Space Administration No objection Discussion Solar energy is broadly defined in the bill as energy recently originating from the sun including: direct and indirect solar radiation and intermediate forms of energy such as wind, sea thermal gradients (differentials in ocean temperatures) , photosynthetic processes (converting light to other forms of 93D CONGRESS HOUSE OF REPRESENTATIVES REPORT 2d Session No. 93-1428 SOLAR ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACT OF 1974 OCTOBER 4, 1974.-Ordered to be printed FORD Mr. TEAGUE, from the committee of conference, submitted the following CONFERENCE REPORT [To accompany S. 3234] The committee of conference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 3234) to authorize a vigorous Federal program of research, development, and demonstration to assure the utilization of solar energy as a viable source for our national energy needs, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the Senate recede from its disagreement to the amendment of the House to the text of the bill and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the House amend- ment insert the following: That this Act may be cited as the "Solar Energy Research, Develop- ment, and Demonstration Act of 1974". DECLARATION OF FINDINGS AND POLICY SEC. 2. (a) The Congress hereby finds that— (1) the needs of a viable society depend on an ample supply of energy; (2) the current imbalance between domestic supply and de- mand for fuels and energy is likely to persist for some time; (3) dependence on nonrenewable energy resources cannot be continued indefinitely, particularly at current rates of consump- tion; (4) it is in the Nation's interest to expedite the long-term de- velopment of renewable and nonpolluting energy resources, such as solar energy; (5) the various solar energy technologies are today at widely differing stages of development, with some already near the stage of commercial application and others still requiring basic research; 38-006 o 2 3 (6) the early development and export of viable equipment (E) the General Manager of the Atomic Energy Commission; utilizing solar energy, consistent with the established preeminence and of the United States in the field of high technology products, can (F) a member to be designated by the President. make a valuable contribution to our balance of trade; (2) The President shall designate one member of the Project to (7) the mass production and use of equipment utilizing solar serve as Chairman of the Project. energy will help to eliminate the dependence of the United States (3) If the individual designated under paragraph (1) (F) is an upon foreign energy sources and promote the national defense; officer or employee of the Federal Government, he shall receive no (8) to date, the national effort in research, development, and additional pay on account of his service as a member of the Project. demonstration activities relating to the utilization of solar energy If such individual is not an officer or employee of the Federal Govern- has been extremely limited; therefore ment, he shall be entitled to receive the daily equivalent of the annual (9) the urgency of the Nation's critical energy shortages and rate of basic pay in effect for level IV of the Executive Schedule the need to make clean and renewable energy alternatives com- (5 U.S.C. 5315) for each day (including traveltime) during which he mercially viable require that the Nation undertake an intensive is engaged in the actual performance of duties vested in the Project. research, development, and demonstration program with an (c) The Project shall have overall responsibility for the provision estimated Federal investment which may reach or exceed of effective management and coordination with respect to a national $1,000,000,000. solar energy research, development, and demonstration program, (b) The Congress declares that it is the policy of the Federal including- Government to— (1) the determination and evaluation of the resource base, in- (1) pursue a vigorous and viable program of research and cluding its temporal and geographic characteristics; resource assessment of solar energy as a major source of energy (2) research and development on solar energy technologies; for our national needs; and and (2) provide for the development and demonstration of prac- (3) the demonstration of appropriate solar energy technologies. ticable means to employ solar energy on a commerical scale. (d) (1) The Project shall carry out its responsibilities under this section in cooperation with the following Federal agencies: DEFINITIONS (A) the National Science Foundation, the responsibilities of which shall include research; SEC. 3. For the purposes of this Act- (B) the National Aeronautics and Space Administration, the (1) the term "solar energy" means energy which has recently responsibilities of which shall include the provision of manage- originated in the Sun, including direct and indirect solar radia- ment capability and the development of technologies; tion and intermediate solar energy forms such as wind, sea thermal (C) the Atomic Energy Commission, the responsibilities of gradients, products of photosynthetic processes, organic wastes, which shall include the development of technologies; and others; (D) the Department of Housing and Urban Development, the (2) the term "byproducts" includes, with respect to any solar responsibilities of which shall include fostering the utilization of energy technology or process, any solar energy products (includ- solar energy for the heating and cooling of buildings, pursuant ing energy forms) other than those associated with or constitut- to the Solar Heating and Cooling Demonstration Act of 1974 ing the primary product of such technology or process; (P.L. 93-409; 88 Stat. 1069); and (3) the term "insolation" means the rate at which solar energy (E) the Federal Power Commission, the responsibilities of is received at the surface of the Earth; which shall include fostering the utilization of solar energy for (4) the term "Project" means the Solar Energy Coordination the generation of electricity and for the production of synthetic and Management Project; and fuels. (5) the term "Chairman" means the Chairman of the Project. (2) Upon request of the Chairman, the head of any such agency is SOLAR ENERGY COORDINATION AND MANAGEMENT authorized to detail or assign, on a reimbursable basis or otherwise, any PROJECT of the personnel of such agency to the Project to assist it in carrying out its responsibilities under this Act. SEC. 4. (a) There is hereby established the Solar Energy Coordina- (e) The Project shall have exclusive authority with respect to the tion and Management Project. establishment or approval of programs or projects initiated under this (b) (1) The Project shall be composed of six members as follows: Act, but the agency involved in any particular program or project (A) an Assistant Director of the National Science Founda- shall be responsible for the operation and administration of such pro- tion; gram or project. (B) an Assistant Secretary of Housing and Urban Develop- (f) The National Aeronautics and Space Administration is author- ment; ized to undertake and carry out those programs assigned to it by the (C) a member of the Federal Power Commission; Project. (D) an Associate Administrator of the National Aeronautics and Space Administration; 4 5 RESOURCE DETERMINATION AND ASSESSMENT (c) The specific solar energy technologies to be addressed or dealt SEC. 5. (a) The Chairman shall initiate a solar energy resource deter- with in the program shall include- mination and assessment program with the objective of making a (1) direct solar heat as a source for industrial processes, in- regional and national appraisal of all solar energy resources, includ- cluding the utilization of low-level heat for process and other ing data on insolation, wind, sea thermal gradients, and potentials industrial purposes; for photosynthetic conversion. The program shall emphasize identifi- (2) thermal energy conversion, and other methods, for the gen- cation of promising areas for commercial exploitation and develop- eration of electricity and the production of chemical fuels; ment. The specific goals shall include- (3) the conversion of cellulose and other organic materials (in- (1) the development of better methods for predicting the avail- cluding wastes) to useful energy or fuels; ability of all solar energy resources, over long time periods and (4) photovoltaic and other direct conversion processes; by geographic location; (5) sea thermal gradient conversion; (2) the development of advanced meteorological, oceano- (6) windpower conversion; graphic, and other instruments, methodology, and procedures (7) solar heating and cooling of housing and of commercial necessary to measure the quality and quantity of all solar resources and public buildings; and on periodic bases; (8) energy storage. (3) the development of activities, arrangements, and proce- DEMONSTRATION dures for the collection, evaluation, and dissemination of informa- tion and data relating to solar energy resource assessment. SEC. 7. (a) The Chairman is authorized to initiate a program to de- (b) The Chairman, acting through the National Aeronautics and sign and construct, in specific solar energy technologies (including, Space Administration, the National Oceanic and Atmospheric Ad- but not limited to, those listed in section (6) (c)), facilities or power- ministration, and other appropriate agencies, shall- plants of sufficient size to demonstrate the technical and economic (1) develop and carry out a general plan for inventorying all feasibility of utilizing the various forms of solar energy. The specific forms of solar energy resources associated with Federal lands goals of such programs shall include- and (where consistent with property rights) non-Federal lands; (1) production of electricity from a number of powerplants, on (2) conduct regional surveys based upon such general plan, the order of one to ten megawatts each; using innovative meteorological, oceanographic, and space-related (2) production of synthetic fuels in commercial quantities; techniques, in sufficient numbers to lead to a national inventory (3) large-scale utilization of solar energy in the form of direct of solar energy resources in the United States; heat; (3) publish and make available maps, reports, and other docu- (4) utilization of thermal and all other byproducts of the solar ments developed from such surveys to encourage and facilitate the facilities; commercial development of solar energy resources; and (5) design and development of hybrid systems involving the (4) make such recommendations for legislation as may appear concomitant utilization of solar and other energy sources; and to be necessary to establish policies for solar resources involving (6) the continuous operation of such plants and facilities for Federal lands and waters, consistent with known inventories of a period of time. various resource types, with the state of technologies for solar (b) For each of the technologies for which a successful and appro- energy development, and with evaluation of the environmental priate development program is completed, the Chairman shall make impacts of such development. a determination to proceed to demonstration based on criteria includ- RESEARCH AND DEVELOPMENT ing, but not necessarily limited to, the following: (1) the technological feasibility of the project; SEC. 6. (a) The Chairman shall initiate a research and development (2) the costs and benefits of the project, as determined by an program for the purpose of resolving the major technical problems economic assessment; inhibiting commercial utilization of solar energy in the United States. (3) the immediate and the potential uses of the solar energy (b) In connection with or as a part of such program, the Chairman utilized in the project; shall- (4) long-term national need for the technology; (1) conduct, encourage, and promote scientific research and (5) environmental impact; studies to develop effective and economical processes and equip- (6) potential for technology transfer to other applications; ment for the purpose of utilizing solar energy in an acceptable and manner for beneficial uses; (7) the nature and extent of Federal participation, if any, in (2) carry out sustems economic, social. and environmental the project. studies to provide a basis for research, development and demon- (c) In carrying out his responsibilities under this section, the stration planning and phasing; and Chairman, acting through the appropriate Federal agencies, may (3) perform or cause to be performed technology assessments provide for the establishment of one or more demonstration projects relevant to the utilization of solar energy. utilizing each form of solar energy, which shall include, as appro- 6 7 priate, the specific research, development, pilot plant construction and reviewing, processing, and disseminating information and data in all operation, demonstration plant construction and operation, and other of the solar energy technologies referred to in section 7(c) in a timely facilities and activities which may be necessary to show commercial and accurate manner in support of the objectives of this Act. viability of the specific solar technology. (2) Information and data compiled in the bank shall include- (d) The Chairman, acting through the appropriate Federal agen- (A) technical information (including reports, journal articles, cies, is authorized to investigate and enter into agreements for the dissertations, monographs, and project descriptions) on solar en- cooperative development of facilities to demonstrate solar technologies. ergy research, development, and applications; The responsible Federal agency may consider- (B) similar technical information on the design, construction, (1) cooperative agreements with non-Federal entities for con- and maintenance of equipment utilizing solar energy; struction of facilities and equipment to demonstrate solar energy (C) general information on solar energy applications to be technologies; and disseminated for popular consumption; (2) cooperative agreements with other Federal agencies for the (D) physical and chemical properties of materials required for construction of facilities and equipment and operation of facilities solar energy activities and equipment; and to produce energy for direct Federal utilization. (E) engineering performance data on equipment and devices (e) The Chairman, acting through appropriate Federal agencies utilizing solar energy. is authorized to construct and operate demonstration projects without (3) In accordance with regulations prescribed under section 12, the entering into cooperative agreements with respect to such projects, if Chairman shall provide retrieval and dissemination services with re- the Chairman finds that— spect to the information described under paragraph (2) for- (1) the nature of the resource, the geographical location, the (A) Federal, State, and local government organizations that scale and engineering design of the facilities, the techniques of are active in the area of energy resources (and their contractors) ; production, or any other significant factor of the specific demon- (B) universities and colleges in their related research and con- stration project offers opportunities to make important contribu- sulting activities; and tions to the general knowledge of solar resources, the techniques (C) the private sector upon request in appropriate cases. of its development, or public confidence in the technology; and (4) In carrying out his functions under this subsection, the Chair- (2) there is no opportunity for cooperative agreements with man shall utilize, when feasible, the existing data base of scientific and any non-Federal entity witting and able to cooperate in the technical information in Federal agencies, adding to such data base demonstration project under subsection (d) (1), and there is no any information described in paragraph (2) which does not already opportunity for cooperative agreements with other Federal agen- reside in such base. He shall coordinate or merge this data bank with cres under subsection (d) (2). other Federal energy information data banks as necessary to assure (f) If the estimate of the Federal investment with respect to con- efficient and effective operation. struction and operation costs of any demonstration project proposed (b) In carrying out his functions under this Act the Chairman to be established under this section exceeds $20,000,000. no amount may shall perform or cause to be performed studies and research on incen- be appropriated for such project except as specifically authorized by tives to promote broader utilization and consumer acceptance of solar legislation hereafter enacted by the Congress. energy technologies. (g) (1) At the conclusion of any demonstration project established (c) The Chairman shall enter into such arrangements and take such under this section, or as soon thereafter as may be practicable, the other steps as may be necessary or appropriate to provide for the effec- responsible Federal agencies shall, by sale, lease, or otherwise, dispose tive coordination of solar energy technology utilization with all other of all Federal property interests which they have acquired pursuant technology utilization programs within the Federal Government. to this section in accordance with existing law and the terms of the SCIENTIFIC AND TECHNICAL EDUCATION cooperative agreements involved. (2) The agency involved shall, under appropriate agreements or SEC. 9. The Chairman, acting through the National Science Foun- other arrangements, provide for the disposition of electricity, syn- dation, is authorized and directed to support programs of education thetic fuels, and other byproducts of the project administered by such in the sciences and engineering to provide the necessary trained per- agency. sonnel to perform the solar energy research, development, and dem- onstration activities required under this Act. Such support may SOLAR ENERGY TECHNOLOGY UTILIZATION include fellowships, traineeships, technical training programs, tech- SEC. 8. (a) (1) In carrying out his functions under this Act the nologist training programs, and summer institute programs. Chairman, utilizing the capabilities of the National Science Founda- tion, the National Aeronautics and Space Administration, the Depart- SOLAR ENERGY RESEARCH INSTITUTE ment of Commerce, the Atomic Energy Commission, and other appro- Sec. 10. (a) There is established a Solar Energy Research Insti- priate Federal agencies to the maximum extent possible, shall establish tute, which shall perform such research, development, and related and operate a Solar Energy Information Data Bank (hereinafter in functions as the Chairman may determine to be necessary or appro- this subsection referred to as the "bank") for the purpose of collecting, 8 9 priate in connection with the Project's activities under this Act or to mitment for effectively developing solar energy resources. The Chair- be otherwise in furtherance of the purpose and objectives of this Act. man, in preparing such program definition, shall utilize and consult (b) The Institute may be located (as designated by the Chairman with the appropriate Federal agencies, State and local government at any new or existing Federal laboratory (including a non-Federal agencies, and private organizations. laboratory performing functions under a contract entered into with (b) The Chairman shall transmit such comprehensive program the Project or with any of the agencies represented in the Project as definition to the President and to each House of the Congress. An well as a laboratory whose personnel are Federal employees). interim report shall be transmitted not later than March 1, 1975. The comprehensive program definition shall be transmitted as soon as INTERNATIONAL COOPERATION possible thereafter, but in any case not later than June 30, 1975. SEC. 11. (a) The Chairman, in furtherance of the objectives of this TRANSFER OF FUNCTIONS Act, is authorized to cooperate and participate jointly with other nations, especially those with agreements for scientific cooperation SEC. 16. Within sixty days after the effective date of the law creat- with the United States, in the following activities: ing a permanent Federal organization or agency having jurisdiction (1) interinstitutional. bilateral, or multilateral research proj- over the energy research and development functions of the United ects in the field of solar energy; and States (or within sixty days after the date of the enactment of this (2) agreements and programs which will facilitate the exchange Act if the effective date of such law occurs prior to the date of the of information and data relating to solar energy resource assess- enactment of this Act), all of the authorities of the Project and all of ment and solar energy technologies. the research and development functions (and other functions except (b) The Natinal Science Foundation is authorized to encourage, to those related to scientific and technical education) vested in Federal the maximum extent practicable and consistent with the other objec- agencies under this Act along with related records, documents, per- tives of this Act, international participation and cooperation in the sonnel, obligations, and other items, to the extent necessary or appro- development and maintenance of programs of education to carry out priate, shall, in accordance with regulations prescribed by the Office the policy set forth in section 9. of Management and Budget, be transferred to and vested in such orga- nization or agency. REGULATIONS AUTHORIZATION OF APPROPRIATIONS SEC. 12. The Chairman in consultation with the heads of the Federal agencies having functions under this Act and with other appropriate SEC. 17. To carry out the provisions of this Act, there are authorized officers and agencies, shall prescribe such regulations as may be neces- to be appropriated- sary or appropriate to carry out this Act promptly and efficiently. (1) for the fiscal year ending June 30, 1976, $75,000,000; Each such officer or agency, in consultation with the Chairman, may (2) for subsequent fiscal years, only such sums as the Congress prescribe such regulations as may be necessary or appropriate to carry hereafter may authorize by law; out his or its particular functions under this Act promptly and (3) such amounts as may be authorized for the construction of efficiently. demonstrations pursuant to section 7(f) of this Act; and ANNUAL REPORTS (4) to the National Science Foundation for the fiscal year end- ing June 30, 1975, not to exceed $2,000,000 to be made available SEC. 13. The Chairman shall report, on an annual basis, to the Presi- for use in the preparation of the comprehensive program defini- dent and the Congress all actions taken under the provisions of this tion under section 15. Act, all action planned for the ensuing year, and, to the extent practi- And the House agree to the same. cal, a projection of activities and funding requirements, for the en- That the House recede from its amendment to the title of the Senate suing five years. The Chairman also shall recommend. as he deems bill. appropriate, any legislation or reorganization which might further the OLIN E. TEAGUE, purposes of this Act. MIKE McCormack, DON FUQUA, INFORMATION TO CONGRESS JAMES W. SYMINGTON, Sec. 14. Notwithstanding any other provision of law, the Chairman CHARLES A. MOSHER, (or the head of any agency which assumes the functions of the Project BARRY M. GOLDWATER, Jr., pursuant to section 16) shall keep the appropriate committees of the JOHN W. WYDLER, House of Representatives and the Senate fully and currently informed Managers on the Part of the House. with respect to all activities under this Act. HENRY M. JACKSON, J. BENNETT JOHNSTON, Jr., COMPREHENSIVE PROGRAM DEFINITION FLOYD K. HASKELL, SEC. 15. (a) The Chairman is authorized and directed to prepare PAUL FANNIN, a comprehensive program definition of an integrated effort and com- JAMES McCLURE, Managers on the Part of the Senate. JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE The managers on the part of the House and the Senate at the con- ference on the disagreeing votes of the two Houses on the amendments of the House to the bill (S. 3234) to authorize a vigorous Federal program of research, development, and demonstration to assure the utilization of solar energy as a viable source for our national energy needs, and for other purposes, submit the following joint statement to the House and the Senate in explanation of the effect of the action agreed upon by the managers and recommended in the accompanying conference report: The House amendment to the text of the bill struck out all of the Senate bill after the enacting clause and inserted a substitute text. The Senate recedes from its disagreement to the amendment of the House with an amendment which is a substitute for the Senate bill and the House amendment. The differences between the Senate bill, the House amendment, and the substitute agreed to in conference are noted below, except for clerical corrections, conforming changes made necessary by agreements reached by the conferees, and minor drafting and clarifying changes. SHORT TITLE Senate bill The Senate bill provided that this legislation may be cited as the "Solar Energy Research, Development, and Demonstration Act of 1974". House amendment The House amendment was the same as the Senate bill. Conference substitute The conference substitute is the same as the Senate bill. FINDINGS AND POLICY Senate bill Section 2(a) of the Senate bill made the following findings: (1) dependence on nonrenewable energy resources cannot be continued in- definitely; (2) renewable energy resources, such as solar energy, should be developed; (3) research and development with respect to solar energy has been extremely limited; and (4) the Nation should under- take a 5-year, $1 billion research, development, and demonstration program with respect to energy alternatives. Section 2(b) of the Senate bill provided that it is the policy of the Federal Government to (1) pursue a solar energy research and devel- opment program; and (2) develop and demonstrate methods for the commercial use of solar energy. (11) 12 13 House amendment 1. The term "solar energy" was defined to mean energy which has Section 2 of the House amendment was essentially the same as sec- recently originated in the Sun, including direct and indirect solar tion 2(a) of the Senate bill, except that the House amendment made radiation and various intermediate solar energy forms. the following additional findings: (1) society depends on an ample 2. The term "byproduct" was defined to include, with respect to supply of energy; (2) the imbalance between the supply and de- solar energy technologies and processes, any solar energy products mand for fuels and energy probably will persist; (3) solar energy other than those associated with or constituting the primary product technologies presently are at widely differing stages of development; of such technologies or processes. (4) the United States balance of trade would be improved by the 3. The term "insolation" was defined to mean the rate at which export of viable equipment utilizing solar energy; and (5) mass solar energy is received at the surface of the earth. Such term covered production and use of equipment utilizing solar energy would make both direct and scattered solar radiation. the United States less dependent upon foreign energy sources. 4. The term "Project" was defined in the same manner as in the Section 3 of the House amendment was essentially the same as sec- Senate bill. tion 2(b) of the Senate bill. Conference substitute Conference substitute The conference substitute is the same as the House amendment, ex- The conference substitute is the same as the Senate bill, with the cept that the conference substitute incorporates the definition of following changes: "Chairman" contained in the Senate bill. 1. The conference substitute incorporates the 5 findings of the House amendment which were not contained in the Senate bill. COORDINATION AND MANAGEMENT PROJECT 2. The conference substitute changes the second finding made by Senate bill the Senate bill in order to stress that development of renewable and nonpolluting energy resources shold be expedited. Section 4(a) of the Senate bill established the Solar Energy Co- 3. The conferees agree that the objective of this legislation is to ordination and Management Project (hereinafter in this statement achieve, at the earliest possible date, the commercial viability of referred to as the "Project"). various applications of solar energy technology. They also agree that Section 4(b) provided that the Project would be composed of 6 suggesting a specific time period, within which this goal could be members as follows: (1) an Assistant Director of the National Science reached for any particular technology or group of technologies, is Foundation (hereinafter in this statement referred to as "NSF") premature. The conference substitute, therefore, omits reference to a (2) an Assistant Secretary of Housing and Urban Development (here- 5-year period in the fourth finding made by the Senate bill. inafter in this statement referred to as "HUD") (3) a member of Consistent with this, the conferees agree to alter the Senate language the Federal Power Commission (hereinafter in this statement referred which estimated a need for a Federal investment of $1 billion over 5 to as "FPC") (4) an Associate Administrator of the National Aero- years to carry out the provisions of this legislation. They agree that, nautics and Space Administration (hereinafter in this statement re- while an outlay of this magnitude or more may well be required, it is ferred to as "NASA") ; (5) the General Manager of the Atomic En- too early to define the necessary level of expenditures. They therefore ergy Commission (hereinafter in this statement referred to as agree to qualify the $1 billion figure by stating that the financial needs "AEC") ; and (6) a member designated by the President. of the program may " reach or exceed " that amount. The Section 4(b) also provided that the President shall designate one conferees agree that these changes from the Senate bill are not meant member of the Project to serve as Chairman of the Project. to contravene the intent of proceeding expeditiously toward achieving Section 4(c) provided that the Project shall be responsible for the the purpose of the legislation. management and coordination of a national solar energy research, development, and demonstration program. DEFINITIONS House amendment Senate bill Section 5(a) of the House amendment was the same as section 4(a) Section 3 of the Senate bill contained the following definitions: of the Senate bill. Section 5(b) of the House amendment was essen- 1. The term "utilization of solar energy" was defined to mean tially the same as section 4(b) of the Senate bill. various advanced technology applications of solar energy. Section 5(c) of the House amendment was essentially the same as 2. The term "Project" was defined to mean the Solar Energy Co- section 4(c) of the Senate bill, except that the House amendment ordination and Management Project. provided that the solar energy research, development, and demonstra- 3. The term "Chairman" was defined to mean the Chairman of the tion program shall include (1) determination and evaluation of Project. the resource base; (2) research and development on solar energy House amendment technologies; and (3) demonstration of appropriate solar energy technologies. Section 4 of the House amendment contained the following defini- Section 5(d) of the House amendment provided that the Project tions: shall cooperate with NSF, NASA, AEC, HUD, and FPC, in carrying 14 15 out its responsibilities under section 5. Such subsection also provided sources; (3) developing proposed agreements and programs with other for the responsibilities of each such agency and authorized the head of countries with respect to solar energy resources assessment; and (4) each such agency to detail personnel to the Project. developing arrangements for the flow of information and data with Section (e) of the House amendment provided that the Project respect to solar energy resources assessment. shall have overall authority with respect to programs and projects Section 6(b) of the House amendment required the Chairman, act- initiated under this legislation. The agencies involved, however, shall ing through NASA and the National Oceanic and Atmospheric Ad- be responsible for the operation and administration of each such pro- ministration, to (1) develop a plan for inventorying solar energy gram or project. resources associated with Federal lands and, to the extent consistent Section 5(f) of the House amendment authorized NASA to under- with property rights, with non-Federal lands; (2) conduct regional take and carry out-programs assigned to it by the Project. surveys leading to a national inventory of solar energy resources; (3) Conference substitute make available maps and reports developed from such surveys to en- The conference substitute is the same as the House amendment, with courage commercial development of solar energy resources; and (4) make recommendations for legislation with respect to Federal leasing the following changes: 1. The conference substitute provides that if the member of the policies for solar energy resources. Project designated by the President is an officer or employee of the Conference substitute Federal Government, he shall receive no additional salary. If he is The conference substitute is the same as the House amendment, ex- not an officer or employee of the Federal Government, he shall receive cept that the conference substitute omits the provision relating to the daily equivalent of the annual rate of pay for level IV of the developing proposed agreements and programs with other countries Executive Schedule for each day during which he serves as a member. with respect to solar energy resources assessment, since provisions re- 2. The conference substitute specifies that the responsibilities of lating to international cooperation are contained in a new section HUD shall be carried out pursuant to the Solar Heating and Cooling added by the conference substitute. Demonstration Act of 1974 (P.L. 93-409 88 Stat. 1069). The conference substitute also authorizes NSF to encourage inter- 3. The conference substitute provides that the responsibilities of national participation and cooperation in developing and maintaining NSF are altered with regard to overall funding. Presently, NSF is programs of technical and scientific education. the lead agency for solar energy R. & D. It is consistent with the in- tent of the conferees for appropriations to the Project to be made RESEARCH AND DEVELOPMENT through NSF in fiscal year 1976 and beyond. The deletion of "basic Senate bill and applied" in describing NSF research responsibilities is consistent Section 5 of the Senate bill provided that the Chairman shall initiate with the conferees' desire to not change the character of NSF a research and development program to resolve technical prob- programs. lems with respect to commercial utilization of solar energy. Sec- 4. Section 5 (c) (1) of the House amendment, as incorporated by the tion 5 also provided that such program shall include (1) scientific conference substitute, refers to a general survey of the solar resource research and studies to develop solar energy processes and equipment; base. It is anticipated that detailed assessments will be made in spe- (2) systems, economic, social, and environmental studies with respect cific geographical areas, in addition to the general surveys, in con- to use of solar energy; (3) technical assessments with respect to use of junction with demonstrations. solar energy; and (4) cooperation with other nations in interinstitu- The conferees intend that the Project should, whenever applicable, tional, bilateral, or multilateral research projects with respect to solar cooperate with and make use of the expertise of other Federal agen- energy. cies not included as members of the Project, such as the Federal En- Section 5 also provided that the program shall deal with specific ergy Administration and the National Oceanic Atmospheric Admin- solar energy technologies, including (1) direct solar heat as a source istration. for industrial processes; (2) thermal energy conversion; (3) conver- RESOURCE DETERMINATION AND ASSESSMENT sion of cellulose and other organic materials to useful energy or fuels; Senate bill (4) photovoltaic and other direct conversion processes; (5) sea ther- mal power conversion; and (6) windpower conversion. No provision. House amendment House amendment Section 7(a) of the House amendment required the Chairman to Section 6(a) of the House amendment required the Chairman to initiate a research and development program to facilitate commercial initiate a solar energy resource determination and assessment pro- utilization of solar energy resources. Section 7(b) provided for the gram. This program, which shall emphasize the identification of prom- conduct of (1) basic research in all aspects of solar energy resources; ising areas for commercial exploitation and development, shall have (2) various environmental and other studies to provide a basis for the following goals: (1) developing methods to predict the avail- research and development planning and phasing; (3) technology ability of solar energy resources; (2) developing instrumentation, assessments; and (4) development of means to use the solar energy methodology and procedures necessary to measure solar energy re- resource base, with specific attention directed to (A) improving the 16 17 capability to predict environmental impacts of solar energy resources of any demonstration programs authorized by the Congress. Section development; (B) identifying social, legal, and economic problems 9(b) provided that if, on the date of submission of the report required associated with solar energy resources development; and (C) develop- by section 7(b) of the Senate bill, ERDA has not been established, ment of agreements with other countries to exchange information and then the President shall designate an appropriate agency to carry out support cooperative research. the functions of section 9(a). Section 7(c) was essentially the same as those provisions of section 5 of the Senate bill which required the program to deal with specific House amendment solar energy technologies, except that the House amendment also in- Section 8(a) of the House amendment authorized the Chairman cluded (1) solar heating and cooling of housing and of commercial to initiate a program to design and operate facilities or powerplants and public buildings; and (2) energy storage. to demonstrate the feasibility of utilizing solar energy. Section 8(a) Conference substitute also established various goals of such program. Section 8(b) authorized the Chairman to establish one or more The conference substitute is the same as the House amendment, ex- demonstration projects utilizing each form of solar energy. The Chair- cept that the conference substitute adopts the approach of the Senate man was given authority to obtain, through appropriate Federal agen- bill with respect to the requirement of scientific research and studies cies, plants and other real property used in any demonstration project. to develop solar energy processes and equipment. Any agency designated by the Chairman to conduct a demonstra- tion project shall provide for the disposal of electric energy and other DEMONSTRATION byproducts of such project. Such disposition, to the maximum extent Senate bill possible, shall be achieved through the sale of such electric energy Section 6 of the Senate bill required the Chairman to (1) solicit or other byproducts. proposals for demonstration plants with respect to each technology Section 8(c) authorized the Chairman, acting through appropriate described in section 5(c) of the Senate bill; such proposals shall in- Federal agencies, to enter into agreements with non-Federal entities clude a description of (A) the proposed plant or facility; (B) an eco- for the development of solar demonstration facilities. nomic assessment of costs and benefits of the project; (C) an assess- Section 8(d) required the responsible Federal agencies, at the con- ment of uses of solar energy utilized in the project; and (D) the nature clusion of the program established under section 8, to dispose of Fed- and extent of any anticipated Federal participation; (2) select pro- eral property interests which have been acquired pursuant to such posals for demonstration, based upon (A) economic costs and feasibil- program. Such disposition shall be on such terms and conditions as the ity; (B) national interest considerations with respect to the techno- agency determines to be reasonable, or in accordance with the terms of logy; (C) environmental impact; (D) potential for technology any cooperative agreement which is involved. transfer to other applications; and (E) likelihood of success for com- Section 8(e) provided that preference shall be given to solar mercial application; and (3) conduct feasibility studies for a full- energy technologies with the best opportunity for commercial suc- scale demonstration program for each of the specific selected proposals. cess and environmental acceptability in selecting technologies for Section 8(a) of the Senate bill provided that the Chairman, in co- demonstration. operation with the AEC, may initiate small-scale demonstration pro- Conference substitute grams involving a total Federal investment of not more than $20 The conference substitute authorizes the Chairman to initiate a million. Section 8 (b) provided that the AEC shall be directly respon- sible for administering construction contracts and agreements with program to construct demonstration facilities or powerplants for the non-Federal participants in the small-scale demonstrations. development and use of solar energy. The goals of such program Section 8(c) authorized the AEC to enter into agreements with non- include (1) production of electricity from a number of powerplants, Federal utilities, industries, and governmental entities for the con- ranging from 1 to 10 megawatts each; (2) production of synthetic fuels struction and operation of small-scale demonstration programs. in commercial quantities; (3) use of solar energy in the form of Section 8(d) provided that no agreement shall be entered into direct heat; and (4) use of thermal and all other byproducts; (5) under section 8 unless the Chairman determines that (1) the nature of design and development of hybrid systems; and (6) continuous opera- the resource, location, and facilities involved, offers an opportunity to tion of the facilities or powerplants for a period of time. contribute to the development of solar energy; (2) the potential non- The conference substitute provides that, with respect to each solar Federal participants are willing and capable to make contributions to- energy technology for which a development program is completed, the Chairman shall determine whether to proceed to demonstration. ward the capital cost of the program; and (3) the development of His determination shall be based, in part, upon consideration of the benefits under the program is unlikely to be accomplished without Federal assistance. following criteria: (1) technological feasibility of the project; (2) Section 9(a) of the Senate bill provided that, after establishment of costs and benefits of the project; (3) uses of the solar energy to be the Energy Research and Development Administration (hereinafter utilized in the project; (4) long-term national need for the technology in this statement referred to as "ERDA"), the Administrator of involved in the project; (5) environmental impact; (6) potential of technology transfer to other applications; and (7) the nature and ERDA shall administer contracts for the construction and operation extent of any Federal participation in the project. 18 19 The conference substitute also provides that the Chairman, acting required to utilize the existing scientific and technical information through the appropriate Federal agencies, may establish one or more data base of Federal agencies, and to coordinate or merge the data demonstration projects utilizing each form of solar energy. The con- bank established under section 11 (a) with other Federal energy in- ference substitute authorizes the Chairman, acting through the appro- formation data banks as necessary to assure efficient operation. priate Federal agencies, to investigate and enter into agreements for Section 11(b) required the Chairman to establish a solar energy the cooperative development of facilities to demonstrate solar energy incentives task force. The functions of such task force are as follows: technologies. The responsible Federal agencies may consider (1) co- (1) report to the President and to the Congress with respect to pro- operative agreements with non-Federal entities; and (2) cooperative grams to accelerate commercial application and consumer utilization agreements with other Federal agencies for production of energy for of solar energy technology; (2) conduct a program of research and direct Federal utilization. investigation concerning problems in developing and utilizing solar The conference substitute also authorizes the Chairman, acting energy; and (3) carry on a program of research and investigation con- through the appropriate Federal agencies, to operate demonstration cerning social, legal, and economic barriers to public acceptance and projects without entering into any cooperative agreements with respect use of solar energy. to such projects, if the Chairman finds that (1) the nature of the Section 11 (c) required the Chairman to make arrangements to co- resource, location, and facilities involved, offers an opportunity to ordinate solar energy technology utilization with other Federal tech- contribute to the development of solar energy; and (2) there is no nology utilization programs. opportunity for agreements with non-Federal entities or with other Conference substitute Federal agencies. The conference substitute provides that if the estimate of Federal The conference substitute is the same as the House amendment, with investment in a demonstration project exceeds $20 million, then no the following changes: amount may be appropriated for such project except as specifically 1. The conference substitute specifically requires the data bank to authorized by legislation hereafter enacted by the Congress. compile information and data on solar energy applications which The conference substitute also provides that, at the conclusion of would be appropriate for popular consumption. a demonstration project, the responsible Federal agencies shall dispose 2. The conference substitute omits the provision of the House amend- of all Federal property interests in the project in a manner consistent ment which required establishment of a solar energy incentives task with existing law and the terms of the cooperative agreements in- force. In place of such provision, the conference substitute includes a volved. The conference substitute also provides that the Federal provision which requires the Chairman to perform studies and re- agency involved shall dispose of electricity, synthetic fuels, and other search on incentives to promote broader use and consumer acceptance byproducts of the project administered by such agency. of solar energy technologies. SCIENTIFIC AND TECHNICAL EDUCATION SOLAR ENERGY TECHNOLOGY UTILIZATION Senate bill Senate bill Section 12 of the Senate bill authorized the Chairman, acting Section 10 (a) of the Senate bill authorized and directed the Chair- through NSF, to support education programs to provide the neces- man to collect and disseminate information and data with respect to sary trained personnel to perform solar energy research, development, applications of solar energy developed under this legislation, includ- and demonstration activities required under this legislation. Section 12 ing (1) technical information resulting from research and demonstra- provided that such support may include fellowships, traineeships, tion programs specified under sections 5, 6, and 8 of the Senate bill; technical training programs, technologist training programs. and and (2) general information on solar energy applications. summer institute programs. Section 10(b) provided that the Chairman shall encourage develop- House amendment ment of agreements and programs with other countries to exchange Section 9 of the House amendment provided that it is the policy of information relating to solar energy resource assessment. the Congress to encourage programs to provide trained personnel to Section 11 of the Senate bill provided that the Chairman shall take carry out solar energy research, development, and demonstration necessary steps to coordinate solar energy technology utilization with activities. NSF was authorized to support educational programs de- all other technology utilization programs of the Federal Government. signed to effectuate such policy. NSF was required to coordinate its House amendment activities with the Project or any permanent Federal organization or Section 11 (a) of the House amendment required the Chairman to agency having jurisdiction over Federal research and development establish a Solar Energy Information Data Bank to collect and dis- functions. NSF also was authorized to encourage, to the maximum seminate information and data with respect to solar energy technol- extent possible and consistent with other objectives of this legislation, ogies. The Chairman was required to provide retrieval and dissemina- international participation and cooperation with respect to educa- tion services for Federal, State, and local governmental organizations, tional programs. universities and colleges, and the private sector. The Chairman was 20 21 Conference substitute Conference substitute The conference substitute is the same as the Senate bill, except that The conference substitute is the same as the House amendment. the conference substitute authorizes and directs the Chairman to sup- port such education programs, instead of allowing such support to be a ANNUAL REPORTS matter of discretion. Senate bill Section 13 of the Senate bill required the Chairman to report on an SOLAR ENERGY RESEARCH INSTITUTE annual basis to the President and to the Congress with respect to (1) Senate bill actions taken under this legislation; (2) actions planned for the Section 14 of the Senate bill established a Solar Energy Research ensuing year; and (3) to the extent practical, activities and funding Institute, which shall perform functions assigned to it by the Chair- requirements for the ensuing 5 years. The Chairman was required to man. The Chairman may locate such Institute at any Federal labora- recommend, as he deems appropriate, any legislation or reorganization tory or any non-Federal laboratory if such laboratory is under con- which may further the purposes of this legislation. tract with the Project, or any Federal agency represented in the House amendment Project, if the personnel of such laboratory are Federal employees. Section 12 of the House amendment required each Federal agency House amendment with functions under this legislation to report to the President and to Section 10 of the House amendment was the same as section 14 of the Congress with respect to the activities of such agency. The the Senate bill. Chairman was required to transmit an annual special report to the Conference substitute President and to the Congress summarizing all activities under this The conference substitute is the same as the Senate bill. legislation. Conference substitute INTERNATIONAL COOPERATION The conference substitute is the same as the Senate bill. Senate bill Section 5 of the Senate bill required the Chairman to seek cooper- INFORMATION TO CONGRESS ation with other nations regarding various solar energy research Senate bill projects. Section 10(b) of the Senate bill required the Chairman to No provision. encourage agreements with other countries regarding exchange of House amendment information relating to solar energy resource assessment. Section 15 of the House amendment required the Chairman, or any House amendment organization or agency which assumes the functions of the Project Sections 6, 7, and 9 of the House amendment contained provisions under section 14 of the House amendment, to inform the appropriate relating to international cooperation which were similar to the pro- committees of the Congress with respect to activities under this visions of the Senate bill. legislation. Conference substitute Conference substitute The conference substitute combined the provisions of the Senate The conference substitute is the same as the House amendment. and House versions into one single section specifically addressed to international cooperation. The conferees agree that the development COMPREHENSIVE PROGRAM DEFINITION of solar energy will be enhanced by cooperation with other nations in Senate bill the research projects established by this legislation and in the mutual Section 7 of the Senate bill required the Chairman to report to the exchange of information and data. President and to the Congress, no later than one year after the date of the enactment of this legislation, on the results of feasibility studies REGULATIONS conducted under section 6(c) of the Senate bill. Such reports were Senate bill required to contain, as appropriate, requests for authorization for the No provision. construction of demonstration plants to be pursued to full-scale House amendment application. Section 13 of the House amendment required the Chairman, together House amendment with Federal agencies with functions under this legislation and other Section 16(a) of the House amendment required the Chairman, in appropriate officers and agencies, to prescribe such regulations as may consultation with the Federal Energy Administration, NSF, HUD. be necessary or appropriate to carry out this legislation. 22 23 FPC, NASA, AEC, other appropriate Federal agencies, State and House amendment local government agencies, and private organizations, to prepare Section 17 (a) of the House amendment authorized the appropria- a comprehensive program definition for the development of solar tion of not more than $2 million to NSF for fiscal year 1975 for use in energy resources. preparing the program definition under section 16 of the House Section 16 (b) required the Chairman to transmit interim reports to amendment. the President and to the Congress with respect to such program defini- Section 17 (b) authorized the appropriation of such sums as the tion no later than December 31, 1974, and January 31, 1975. The com- Congress may hereafter authorize by law for fiscal years beginning pleted program definition shall be transmitted no later than June 30, after June 30, 1975. 1975. Conference substitute Conference substitute The conference substitute is the same as the Senate bill, with the The conference substitute is the same as the House amendment, following changes: except that the conference substitute requires only one interim report, 1. The conference substitute reduces the authorization of appropria- which shall be transmitted no later than March 1, 1975. tions for fiscal year 1976 to $75 million. The conferees agree that the final report should be transmitted no 2. The conference substitute includes the provision of the House later than June 30, 1975. They agree that the urgent need to develop amendment relating to the $2 million authorization of appropriations an integrated solar energy research, development, and demonstration to NSF for fiscal year 1975 for use in preparing the program definition. program warrants accelerating the completion of this program The conferees adopted the $75 million authorization of appropria- definition. tions for fiscal year 1976 SO as to be more in line with the projected The conferees intend that the project member agencies as well as budget figure under consideration by the Administration. The con- the Federal Energy Administration, the National Oceanic and Atmos- ferees agree that reducing the authorization of appropriations for pheric Administration, and any other appropriate agencies, should fiscal year 1976 from the Senate figure of $100 million to $75 million cooperate in the comprehensive program definition. is not meant to contravene the intent to supply adequate Federal financial resources for carrying out the vigorous program established TRANSFER OF FUNCTIONS by this legislation. It is the intent of the conferees that, if additional Senate bill funds are needed to carry out the provisions of this legislation during Section 4(d) of the Senate bill provided that, within 60 days after fiscal year 1976, authorization of additional funds through the appro- the date of the énactment of legislation establishing ERDA, the func- priate committees of the Congress would be warranted and in order. tions and authorities of the Project shall be transferred to ERDA, Results of the program definition should be a major consideration in vested in the Administrator of ERDA, and implemented through the determining the need for further funding. Assistant Administrator for Solar, Geothermal, and Advanced En- It is the understanding of the conferees that authorizations for ergy Systems. appropriations made by this legislation are separate from any author- House amendment izations made by the Solar Heating and Cooling Demonstration Act of Section 14 of the House amendment provided that, upon the estab- 1974 (P.L. 93-490; 88 Stat. 1069). lishment of a permanent Federal organization or agency having juris- OLIN E. TEAGUE, diction over the energy research and development functions of the MIKE McCormack, United States, the authorities of the Project and the research, develop- DON Fuqua, ment, and other functions (other than those related to scientific and JAMES W. SYMINGTON, technical education) vested in Federal agencies under this legislation, CHARLES A. MOSHER, shall be transferred to and vested in such permanent Federal organi- BARRY M. GOLDWATER, Jr., zation or agency. JOHN W. WYDLER, Managers on the Part of the House. Conference substitute HENRY M. JACKSON, The conference substitute is the same as the House amendment. J. BENNETT JOHNSTON, Jr., FLOYD K. HASKELL, AUTHORIZATION OF APPROPRIATIONS PAUL FANNIN, Senate bill JAMES MCCLURE, Section 15 of the Senate bill authorized to be appropriated (1) $100 Managers on the Part of the Senate. million for fiscal year 1976; (2) such amounts as may be authorized by annual authorization measures in subsequent years; and (3) such O amounts as may be authorized for construction of full-scale demon- strations under section 9(a) of the Senate bill. Calendar No. 1101 93D CONGRESS SENATE REPORT 2d Session No. 93-1151 SOLAR ENERGY RESEARCH ACT OF 1974 SEPTEMBER 12, 1974.-Ordered to be printed Mr. JACKSON, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany S. 3234] The Committee on Interior and Insular Affairs, to which was referred the bill (S. 3234) to authorize a vigorous Federal program of research and development to assure the utilization of solar energy as a major source for our national energy needs, to provide for the development of suitable incentives for rapid commercial use of solar technology and to establish an Office of Solar Energy Research in the United States Government, having considered the same, reports favor- ably thereon with amendments and recommends that the bill as amended do pass. The amendments are as follows: 1. Strike out all after the enacting clause and insert the following language: That this Act may be cited as the "Solar Energy Research, Development, and Demonstration Act of 1974". DECLARATION OF FINDINGS AND POLICY SEC. 2. (a) The Congress hereby finds that- (1) dependence on nonrenewable energy resources cannot be continued indefinitely, particularly at current rates of consumption; (2) it is in the Nation's interest to begin to expedite the long term development of renewable energy resources, such as solar energy ; and (3) to date, the national effort in research, development, and demonstra- tion activities relating to the utilization of solar energy has been extremely limited; therefore (4) the urgency of the Nation's critical energy shortages and the need to make clean and renewable energy alternatives commercially viable requires that the Nation undertake, at a minmum, a five-year $1,000,000,000 research, development, and demonstration program. (b) The Congress declares that it is the policy of the Federal Government to- (1) pursue a vigorous and viable program of research and development into the utilization of solar energy as a major source of energy for our national needs; and 38-010 3 2 (4) photovoltaic and other direct conversion processes; (2) provide for the development and demonstration of practicable means (5) sea thermal power conversion and to employ solar energy on a commercial scale. (6) windpower conversion. DEFINITIONS FULL-SCALE DEMONSTRATIONS SEC. 3. For the purposes of this Act- SEC. 6. The Chairman shall- (1) utilization of solar energy means advanced technology applications (a) for each of the technologies specified in subsection 5(c), solicit spe- of solar energy including, but not necessarily limited to, solar thermal and cific proposals for full-scale demonstration plants. Such proposals shall be photovoltaic power generation for terrestrial applications, whether situated for facilities or powerplants of sufficient size to demonstrate the technical on the ground or in space, wind energy conversion, ocean thermal gradient and economic feasibility of utilizing the various forms of solar energy, and conversion, solar stimulated bioconversion, and solar production of synthetic shall include, at a minimum, a detailed description of gases and hydrogen; (1) the proposed plant or facility, including plant site and proposed (2) the term "Project" means the Solar Energy Coordination and Man- technology agement Project and (2) an economic assessment of the costs and benefits of proposed (3) the term "Chairman" means the Chairman of the Project. project (8) an assessment of both the immediate and potential future uses MANAGEMENT PROJECTS for the solar energy utilized in the proposed program and SEC. 4. (a) There is hereby established the Solar Energy Coordination and (4) the nature and extent of Federal participation, if any, anticipated in carrying out the proposal. Management Project. (b) (1) The Project shall be composed of six members as follows: (b) for each of the technologies specified in subsection 5(c), select one or (A) an Assistant Director of the National Science Foundation; more specific proposals solicited pursuant to subsection (a), to be pursued (B) an Assistant Secretary of Housing and Urban Development; to the point of full-scale demonstration. Such selection shall be made pur- (C) a member of the Federal Power Commission; suant to an evaluation of the potential success of each proposal, giving full (D) an Associate Administrator of the National Aeronautics and Space consideration to the following matters: Administration: (1) economic costs and feasibility (E) the General Manager of the Atomic Energy Commission and (2) long-term national interest in the technology (F) a member to be designated by the President. (3) environmental impact; (2) The President shall designate one member of the Project to serve as (4) potential for technology transfer to other applications; and (5) likelihood of success for commercial application. Chairman of the Project. (c) The Project shall have overall responsibility for the provision of effective (c) conduct feasibility studies for a full-scale demonstration program for each of the specific selected proposals, identifying any engineering and management and coordination with respect to a national solar energy research, technical work (such as the design, construction, and testing of pilot plants, development, and demonstration program. modules, or other scaled-down operations), that must be completed prior (d) Within sixty days from the date of enactment of legislation establishing to developing processes and plant design concepts to the point of full-scale a Federal Energy Research and Development Administration, the functions and demonstration. authorities of the Project shall be transfered thereto, vested in the Administator REPORTS thereof, and implemented through the Assistant Administrator for Solar, Geo- thermal, and Advanced Energy Systems, to achieve the purposes of this Act. SEC. 7. (a) Not later than one year after the date of enactment of this Act, the Chairman shall report to the President and the Congress, on the results of the RESEARCH AND DEVELOPMENT feasibility studies conducted pursuant to subsection 6(c), together with a re- quest for authorization for the construction of the demonstration plants to be SEC. 5. The Chairman shall- pursued to full-scale application. (a) Initiate a research and development program for the purpose of resolv- ing the major technical problems inhibiting commercial utilization of solar SMALL-SCALE DEMONSTRATION PROGRAMS energy in the United States. (b) In connection with or as a part of such program- SEC. 8. (a) If the Chairman determines that the available level of technology (1) conduct, encourage, and promote basic scientific research and and knowledge of the proposal warrants immediate initiation of a small-scale fundamental studies to develop effective and economical processes and demonstration involving a total Federal investment of not greater than equipment for the purpose of utilizing solar energy in an acceptable man- $20,000,000, the Chairman, in cooperation with the Atomic Energy Commission, ner for beneficial uses; is authorized to initiate such demonstrations. (2) carry out systems, economic, social, and environmental studies to (b) The Commission shall be the agency directly responsible for the adminis- provide a basis for research and development planning and phasing; ; tration of construction contracts and agreements with non-Federal participants (3) perform or cause to be performed technology assessments relevant in such demonstrations. to the utilization of solar energy ; and (c) The Commission is authorized to investigate, negotiate, and enter into (4) cooperate and participate jointly with other nations, especially cooperative agreements with non-Federal utilities, industries, and governmental those with agreements for scientific cooperation with the United States, entities for the construction, operation, and maintenance of demonstration de- in interinstitutional, bilateral or multilateral research projects in the velopments for the production of electric or heat energy using solar energy field of solar energy. technologies. (c) The specific solar energy technologies to be addressed or dealt with in (d) No agreement shall be entered into under the authority granted by this the program shall include- section unless the Chairman determines that- (1) direct solar heat as a source for industrial processes, including (1) the nature of the resource, the geographical location, the scale and the utilization of low-level heat for process and other industrial engineering design of the facilities, the techniques of production, or other purposes; significant factors of the proposal offer opportunities to make important (2) thermal energy conversion, and other methods, for the generation contributions to the general knowledge of solar energy, the techniques of its of electricity and the production of chemical fuels; development, or public confidence in the technology; (3) the conversion of cellulose and other organic materials (including (2) the potential non-Federal cooperating entities are willing and capable wastes) to useful energy or fuels; to make contributions toward the capital cost of the development, to operate S.R. 1151 S.R. 1151 4 5 the power generation or other commercial facilities, and to provide a market for any energy produced 2. Amend the title so as to read (3) the development or the practical benefits of the development as set An Act to authorize a vigorous Federal program of re- forth in clause (1) of this subsection are unlikely to be accomplished with- out Federal assistance. search, development, and demonstration to assure the utiliza- tion of solar energy as a viable source for our national energy ADMINISTRATION OF DEMONSTRATION PROGRAMS needs, and for other purposes. SEC. 9. (a) Subsequent to the establishment of the Energy Research and Development Administration, the Administrator of the Energy Research and I. PURPOSE OF THE MEASURE Development Administration, acting through the Assistant Administrator for Solar, Geothermal, and Advanced Energy Systems shall perform the necessary The purpose of S. 3234, the "Solar Energy Research Development contract administration for the construction and operation of any demonstra- and Demonstration Act of 1974", is to provide for research, develop- tion programs authorized by the Congress, including contracts for the construc- tion and operation of pilot plants, modules, and other scaled-down operations ment and demonstration activities relating to the utilization of ad- deemed necessary to establish the feasibility of authorized projects. vanced solar energy technologies. As reported by the Senate Interior (b) If, on the date of submission of the report specified in subsection 7(b), Committee, the measure is designed to initiate an aggressive and com- there has not been established a Federal Energy Research and Development prehensive program with the administrative framework and financial Administration, the President shall designate an appropriate agency to carry out the functions specified in this section and in section 13 of this Act. support needed to make the widespread use of solar energy econom- ically and technologically practical. The measure has the following INFORMATION major parts: SEC. 10. (a) The Chairman is authorized and directed to collect, analyze, 1. Astatement of the pressing need of the U.S. to expand and accel- process, and disseminate information and data on the applications of solar eratè the development of solar energy, among other of our renewable energy developed pursuant to this Act. Such data and information shall include: energy sources, and a declaration of Federal policy to establish an'ade- (1) technical information resulting from and related to the research and quately funded national program of research, development and dem- demonstration programs specified under sections 5, 6, and 8 of this Act; onstration to ensure the early commercial viability of advanced solar and (2) general information on solar energy applications to be disseminated energy technologies. for popular consumption. 2. An interim organizational arrangement to coordinate and con- (b) The Chairman shall encourage the development of agreement and pro- duct the solar energy research, development and demonstration ac- grams with other countries, to facilitate the exchange of information and data tivities established under this measure pending the formal reorgani- relating to solar energy resource assessment. zation of Federal energy agencies. PROGRAM COORDINATION 3. Authorization of appropriations in the amount of $100 million for fiscal year 1976 to accelerate Federal support for solar energy re- SEC. 11. The Chairman shall enter into such arrangements and take such other steps as may be necessary or appropriate to provide for the effective search and development. coordination of solar energy technology utilization with all other technology 4. Authority and direction to solicit and evaluate proposals for full- utilization programs within the Federal Government. scale demonstration projects for a number of specified solar tech- nology applications and to report to the Congress recommendations as SCIENTIFIC AND TECHNICAL EDUCATION to which proposed demonstration facilities should be authorized for SEC. 12. The Chairman is authorized to support programs of education in the construction. sciences and enegineering to provide the necessary trained peronnel to perform 5. Authority to have constructed small scale pilot or demonstration the solar energy research, development, and demonstration activities required under this Act. Such support may include fellowships, traineeships, technical plants if the status of a technology warrants its immediate applica- training programs, technologist training programs, and summer institute tion and if the cost for such a plant would not exceed $20,000,000. programs. In its entirety, the measure will provide the Congressional initiative ANNUAL REPORTS and direction for a coordinated Federal effort in research, develop- SEC. 13. The Chairman, acting through the Office, shall report, on an annual ment and demonstration of advanced solar energy technologies. It will basis, to the President and the Congress all actions taken under the provisions recognize the need for a Federal commitment to a level of financial of this Act, all action planned for the ensuing year, and, to the extent practical, a projection of activities and funding requirements, for the ensuing five years. support of at least $1 billion over the next 5 years. Further, he shall recommend, as he deems appropriate, legislation and/or reor- ganizations which might further the purposes of this Act. II. BACKGROUND AUTHORIZATION OF APPROPRIATIONS The Senate Committee on Interior and Insular ffairs has long been SEC. 14. (a) To carry out the provisions of this Act, there are authorized to concerned with the potential uses of solar energy. As early as 1959, be appropriated- a measure introduced by Senator Bible, S. 2318, 86th Congress, a bill (1) for the fiscal year ending June 30, 1976, $100,000,000; to provide for research and development of practical means for the (2) such amounts as may be provided by annual authorization measures in subsequent years and utilization of solar energy, was referred to the Committee. When the (3) such amounts as may be authorized for the construction of full-scale Committee was directed, pursuant to Senate Resolution 45, 92d Con- demonstrations pursuant to section 9(a) of this Act. gress, to conduct the National Fuels and Energy Policy Study, it ad- S.R. 1151 S.R. 1151 6 7 dressed the consideration of solar energy as a viable energy source as Energy on a similar solar energy bill, S.2819, which was originally an early part of its investigations. During Committee hearings in sponsored by Senator Humphrey. June of 1972 on "Energy Research Policy Alternatives," testimony S. 3234, as ordered reported unanimously by the Interior Committee was received on a variety of solar energy applications. meeting in markup session September 10, was amended to reflect the The Committee's awareness of the potential contribution of solar findings of the June 27th hearings and the views of Committee energy to the achievement of energy self-sufficiency has been evi- members. denced by its favorable deliberations involving several solar-related The cosponsors of S. 3234 are as follows: Mr. Humphrey, Mr. Bible, bills during the 93d Congress. S. 1283, the National Energy Research Mr. Church, Mr. Cook, Mr. Fannin, Mr. Haskell, Mr. Hatfield, Mr. and Development Policy Act, was introduced by Senator Jackson on Jackson, Mr. Johnston, Mr. Metcalf, Mr. Nelson, Mr. Brock, Mr. Dole, March 19, 1973, and referred to the Interior Committee for its con- Mr. Gravel, Mr. Williams, Mr. Pell, Mr. Mondale, Mr. Tower, Mr. Mc- sideration. This measure includes considerable emphasis on solar Govern, Mr Montoya, and Mr. Schweiker. energy opportunities in terms of setting forth a general national re- search strategy aimed at hastening the commercial application of a III. NEED FOR THE MEASURE wide range of non-nuclear energy sources. After being reported fa- vorably from the Interior Committee, S. 1283 passed the Senate on The current energy shortage has made it quite clear that we can no December 7, 1973, and it was approved by the House with amend- longer rely solely on conventional fuel sources to meet our growing ments on September 11, 1974. energy needs. In order to attain the capability of national energy self- To further accelerate the wide-scale application of solar heating and sufficiency, a serious Federal commitment must be made to advance cooling technology the Congress passed H.R. 11864, the Solar Heating the development and foster the commercial application of our alterna- and Cooling Demonstration Act of 1974. The Act authorizes the ap- tive energy sources. propriation of $60 million over a five-year period to HUD and NASA The solar radiation which impacts upon the earth is an enormous for the purpose of achieving the commercial demonstration of solar potential energy source. For example, the amount of energy from solar heating and cooling systems in residences and commercial buildings. radiation falling upon 400 square miles (20 miles by 20 miles) is The Interior Committee, which held hearings on this bill on June 5th, equivalent to total present annual U.S. electrical consumption. Dr. strongly endorsed the final version of the measure which was signed Alfred J. Eggers, Jr., of the National Science Foundation, noted in into law by the President on September 3, 1974. a recent solar report given to the Chairman of the Atomic Energy Also pending before the Committee is S. 2636, a bill introduced by Commission that through widespread application of advanced solar technologies, it is estimated that 10 to 30 percent of the Nation's re- Senator McGovern, which would authorize appropriations to the Na- quired input BTU's can be provided by solar energy by the year 2000 tional Science Foundation to carry out research into solar, hdrogen and as much as 50 percent by the year 2020. and geothermal resources. Until quite recently, the idea of harnessing the sun's energy on a On March 26, 1974, Senator Humphrey introduced S. 3234, the large-scale was treated more as a curiosity, than as a viable energy Solar Energy Research Act of 1974, which was referred to the Interior option. Federal funding for the development of this potentially clean Committee. Several members of the Committee had joined Senator and abundant energy source was extremely limited: In fiscal year 1974, Humphrey as coponsors of the bill. solar energy was commanding less than 2 percent of the Federal energy As introduced, S. 3234 established an Office of Solar Energy Re- R. & D. budget. Although the fiscal year 1975 Federal authorization search, to be located on an interim basis, in the Atomic Energy Com- for solar energy is $50,000,000, a substantial increase over the preced- mission. The Office was to be transferred into the Energy Research and ing year, a sustained effort requiring expanded government coordina- Development Administration (ERDA) as soon as that entity, or tion, participation and financial assistance will be necessary to resolve another such energy organization would come into being. the technological and economic problems currently inhibiting the com- The Office, in cooperation with other Federal agencies actively mercial utilization of this energy alternative in the United States. involved in solar energy conversion, would be empowered to undertake a $600 million, 5-year R. & D. program to accelerate the commercial IV. SECTION-BY-SECTION ANALYSIS readiness of solar energy systems. Hearings on S. 3234 were held on June 27, 1974. The witnesses discussed the background of solar energy SHORT TITLE and described the status of national and international research and development efforts in this field. They also addressed the current and The short title of this measure is the Solar Energy Research, De- projected future capability of U.S. and foreign industry in the area velopment and Demonstration Act of 1974. of solar energy conversion. They commented on the policy and orga- nizational aspects of S. 3234. A consensus between Committee members SECTION 2. DECLARATION OF FINDINGS AND POLICY and the witnesses was evidenced by the expressed agreement that there is a pressing need for an intensified Federal program of solar energy Section 2(a) sets forth the Congress' findings that faced with a de- In considering S. 3234, the Committee also made use of and built pleting supply of conventional energy resources, the nation must ac- upon May 7 and 8 hearings held by the Joint Committee on Atomic celerate and expand its development of such clean and renewable R. & D. which could hasten its commercial viability. S.R. 1151 S.R. 1151 8 9 energy alternatives as solar energy. The section estimates that to make activies of the Act and to engage in solar energy research agreements solar energy commercial viable will require at least a five-year $1 bil- and projects with other nations. lion research, development and demonstration program and it/declares A great deal of testimony was received at the Committee's June 27th (2(b)) it to be the policy of the Federal government to pursue. a hearings in support of the mutual benefits which could accrue from program. The Committee's estimate that to make solar energy com- international cooperation in solar research and development activities. mercially viable will require a five-year $1 billion program is derived The language in this section makes clear that to the fullest extent from a variety of private and Federal agency sources, including the possible the accumulated expertise of scientists in other nations in the National Science Foundation and the Fedeal Energy Administration. field of solar energy should be utilized and not needlessly duplicated by U.S. scientists. SECTION 3. DEFINITIONS Section 5 also delineates the specific advanced solar energy tech- nologies to be covered by this Act, namely This section defines utilization of solar energy for purposes of this 1. Solar heat for industrial purposes; Act as being limited to advanced technology applications. The reason 2. Thermal energy conversion for electric powerplant generation; for this limiting definition is to avoid any overlap, conflict or duplica- 3. Conversion of organic materials to energy tion of the scope of this measure with the Solar Heating and Cooling 4. Photovoltaic conversion; Demonstration Act, which was signed into law on September 3, 1974. 5. Sea thermal power conversion; and The scope of the present bill encompasses all applications of solar 6. Windpower conversion. energy not contained in the previous legislation. SECTION 6. FULL-SCALE DEMONSTRATIONS SECTION 4. MANAGEMENT PROJECTS This section provides for active solicitation and careful evaluation Section 4 establishes an interagency Solar Energy Coordination and by the Chairman of any proposals for full-scale demonstration of the Management Project to coordinate and administer the provisions of advanced solar energy technologies. It requires that feasibility studies the Act. The Project is to be composed of six members, as follows be conducted on selected proposals for full-scale demonstrations to (1) One Assistant Director of the National Science Founda- determine what further work is needed prior to full-scale application. tion; The purpose of this section is to lay further groundwork for, and (2) One Assistant Secretary of Housing and Urban Develop- develop to the demonstration stage, at least one specific proposal for ment; each of the advanced solar technologies covered by the Act. (3) One member of the Federal Power Commission; (4) One Associate Administrator of the National Aeronautics SECTION 7. REPORTS and Space Administration; (5) The General Manager of the Atomic Energy Commission; This section requires that, not later than one year after the date of and enactment, the Chairman submit to the President and to the Congress (6) One member designated by the President. a report on the feasibility studies conducted on specific advanced solar The President shall designate one of the members as Chairman technology proposals, together with recommendations and requests of the Project. for authorization for the construction of the selected demonstration The section requires that the functions and authorities of the Proj- activities. The purposes of this provision are twofold: (1) to provide ect are to be transferred to the Federal Energy Research and De- a timely impetus to actual full-scale demonstration of the advanced velopment Administration within 60 days after that agency is estab- solar technologies; and (2) to afford the opportunity for Congres- lished. Once ERDA is created, it will be the most appropriate agency sional oversight of the program. to carry out the objectives of the Act, consistent with its mandate is to oversee and coordinate all energy research and development activities SECTION 8. SMALL-SCALE DEMONSTRATION PROGRAMS involving the Federal Government. This section provides that the Chairman may proceed with the con- SECTION 5. RESEACH AND DEVELOPMENT struction of a small-scale demonstration plant if the status of a tech- nology warrants its immediate application and if the Federal cost This section authorizes and directs the Chairman of the Project to outlay for such a plant would not exceed $20,000,000. The Atomic initiate research and development programs fundamental to the com- Energy Commission is designated as the agency which will be respon- mercial development of advanced solar energy technologies. These sible for the administration of advanced design and construction activities are intended to lay the groundwork for the full-scale dem- contracts and agreements with non-Federal participants in such dem- onstration programs provided for in Section 6 of this Act. The Chair- onstrations. It is also authorized by this section to enter into coopera- man is directed to carry out economic, environmental, and social tive agreements with non-Federal entities for the construction, studies relevant to the planning, development and demonstration operation and maintenance of demonstration developments for the S.R. 1151 S.R. 1151 10 11 production of electric or heat energy using solar energy technologies, No agreements shall be authorized under this section unless the Chair- jected activities carried out under the Act and recommending the man determines that funding requirements needed for carrying out those activities. (1) The demonstration will offer opportunities to make important The report shall also include any recomendations by the Project contributions to achieving objectives of the Act; which might serve, through structural or functional revisions or (2) The non-Federal participants will be willing and able to make additions to the program, to further the objectives of the Act. some contribution in the form of funds, rights in property, services or some other valuable consideration; and SECTION 14. AUTHORIZATION OF APPROPRIATIONS (3) The practical benefits to the development of solar energy of the proposed demonstration are unlikely to be accomplished without the This section authorizes the following to be appropriated to carry Federal assistance authorized by this Act. out the provisions of the Act: (1) For the fiscal year ending June 30, 1976, $100,000,000; (2) Such amounts as may be provided by annual authorization SECTION 9. ADMINISTRATION OF DEMONSTRATION PROGRAMS measures in subsequent years; and It is herein provided that the contracts for the construction and (3) Such amounts as may be authorized for the construction of operation of the full-scale demonstration projects will be administered full-scale demonstrations pursuant to section 9 of the Act. by the Assistant Administrator for Solar, Geothermal and Advanced Because of the lack of experience, it is difficult to predetermine the Energy Systems of the Energy Research and Development Adminis- schedule of requirements for capital investments in full-scale demon- tration (or an appropriate alternative to be designated by the Presi- strations, the amounts which would be authorized beyond fiscal year dent if ERDA has not been established). 1976, therefore, are not specified in the bill. SECTION 10. INFORMATION V. ESTIMATE OF Cost This section provides for the collection and analysis of data and In accordance with Section 252(a) of the Legislative Reorganiza- dissemination, on both a technical and popular level, relating to the tion Act of 1970 (Public Law 91-150, 91st Cong.) the Committee pro- applications of advanced solar technologies covered by this Act. It vides the following estimate of cost of this measure. also directs the Chairman to encourage the development of agree- (1) To be authorized for appropriation in fiscal year 1976, ments and programs with other countries to facilitate the exchange $100,000,000. of information and data relating to solar energy resource assessment. (2) Such amounts as may be provided by annual authorization The purpose of this section is to assure a more rapid advance of solar measures in subsequent years to further carry out the provisions of this energy utilization in all sectors, to facilitate replication of successfully Act. It is estimated that an authorization of at least $1 billion over a demonstrated applications, and to increase public understanding of 5-year period would be necessary to achieve the objectives of the Act. the potential beneficial uses of solar energy. VI. COMMITTEE RECOMMENDATION SECTION 11. PROGRAM COORDINATION The Senate Committee on Interior and Insular Affairs in open This section requires that the Chairman coordinate the efforts of markup session on September 10, 1974, by unanimous vote of a the Project with other Federal agencies engaged in similar activities. quorum present, recommends that S. 3234 be enacted with the amend- ments set forth herein. SECTION 12. SCIENTIFIC AND TECHNICAL EDUCATION VII. EXECUTIVE COMMUNICATIONS Financial assistance is authorized by this section to train personnel to perform the solar energy research, development and demonstration The comments of appropriate Executive agencies on S. 3234 were activities required by this Act. The provision recognizes that, because requested but had not been received as of the date of this report. solar energy R & D has hitherto been extremely limited, there are in- sufficient personnel trained in the field to carry out the kind of large- VIII. CHANGES IN EXISTING LAW scale program envisions by the Act. It will therefore be necessary to train a significant number of persons in the requisite skills. The broad Subsection (4) of Rule XXIX of the Standing Rules of the Senate phrasing of the language in this section permits significant leeway requires a statement of any changes in existing law made by the bill for innovative support programs as well as for more traditional as ordered reported. S. 3234 as reported makes no amednment to or assistance. changes in existing laws. SECTION 13. ANNUAL REPORTS This section requires that an annual report be submitted by the Chairman to the President and the Congress on the ongoing and pro- S.R. 1151 S.R. 1151 S. 3234 Ainety-third Congress of the United States of America AT THE SECOND SESSION Begun and held at the City of Washington on Monday, the twenty-first day of January, one thousand nine hundred and seventy-four An Act To authorize a vigorous Federal program of research, development, and demon- stration to assure the utilization of solar energy as a viable source for our national energy needs, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Solar Energy Research, Development, and Demonstra- tion Act of 1974". DECLARATION OF FINDINGS AND POLICY SEC. 2. (a) The Congress hereby finds that— (1) the needs of a viable society depend on an ample supply of energy; (2) the current imbalance between domestic supply and demand for fuels and energy is likely to persist for some time; (3) dependence on nonrenewable energy resources cannot be continued indefinitely, particularly at current rates of consump- tion; (4) it is in the Nation's interest to expedite the long-term devel- opment of renewable and nonpolluting energy resources, such as solar energy; (5) the various solar energy technologies are today at widely differing stages of development, with some already near the stage of commercial application and others still requiring basic research; (6) the early development and export of viable equipment utilizing solar energy, consistent with the established preeminence of the United States in the field of high technology products, can make a valuable contribution to our balance of trade; (7) the mass production and use of equipment utilizing solar energy will help to eliminate the dependence of the United States upon foreign energy sources and promote the national defense; (8) to date, the national effort in research, development, and demonstration activities relating to the utilization of solar energy has been extremely limited; therefore (9) the urgency of the Nation's critical energy shortages and the need to make clean and renewable energy alternatives com- mercially viable require that the Nation undertake an intensive research, development, and demonstration program with an estimated Federal investment which may reach or exceed $1,000,000,000. (b) The Congress declares that it is the policy of the Federal Govern- ment to- (1) pursue a vigorous and viable program of research and resource assessment of solar energy as a major source of energy for our national needs; and (2) provide for the development and demonstration of prac- ticable means to employ solar energy on a commercial scale. DEFINITIONS SEC. 3. For the purposes of this Act- (1) the term "solar energy" means energy which has recently originated in the Sun, including direct and indirect solar radia- tion and intermediate solar energy forms such as wind, sea thermal gradients, products of photosynthetic processes, organic wastes, and others; S. 3234-2 (2) the term "byproducts" includes, with respect to any solar energy technology or process, any solar energy products (includ- ing energy forms) other than those associated with or constitut- ing the primary product of such technology or process; (3) the term "insolation" means the rate at which solar energy is received at the surface of the Earth; (4) the term "Project" means the Solar Energy Coordination and Management Project; and (5) the term "Chairman" means the Chairman of the Project. SOLAR ENERGY COORDINATION AND MANAGEMENT PROJECT SEC. 4. (a) There is hereby established the Solar Energy Coordina- tion and Management Project. (b) (1) The Project shall be composed of six members as follows: (A) an Assistant Director of the National Science Foundation; (B) an Assistant Secretary of Housing and Urban Develop- ment; (C) a member of the Federal Power Commission; (D) an Associate Administrator of the National Aeronautics and Space Administration; (E) the General Manager of the Atomic Energy Commission; and (F) a member to be designated by the President. (2) The President shall designate one member of the Project to serve as Chairman of the Project. (3) If the individual designated under paragraph (1) (F) is an officer or employee of the Federal Government, he shall receive no additional pay on account of his service as a member of the Project. If such individual is not an officer or employee of the Federal Govern- ment, he shall be entitled to receive the daily equivalent of the annual rate of basic pay in effect for level IV of the Executive Schedule (5 U.S.C. 5315) for each day (including traveltime) during which he is engaged in the actual performance of duties vested in the Project. (c) The Project shall have overall responsibility for the provision of effective management and coordination with respect to a national solar energy research, development, and demonstration program, including- (1) the determination and evaluation of the resource base, including its temporal and geographic characteristics; (2) research and development on solar energy technologies; and (3) the demonstration of appropriate solar energy technologies. (d) (1) The Project shall carry out its responsibilities under this section in cooperation with the following Federal agencies: (A) the National Science Foundation, the responsibilities of which shall include research; (B) the National Aeronautics and Space Administration, the responsibilities of which shall include the provision of manage- ment capability and the development of technologies; (C) the Atomic Energy Commission, the responsibilities of which shall include the development of technologies; (D) the Department of Housing and Urban Development, the responsibilities of which shall include fostering the utilization of solar energy for the heating and cooling of buildings, pursuant to the Solar Heating and Cooling Demonstration Act of 1974 (P.L. 93-409; 88 Stat. 1069) ; and (E) the Federal Power Commission, the responsibilities of which shall include fostering the utilization of solar energy for S. 3234-3 the fuels. generation of electricity and for the production of synthetic (2) Upon request of the Chairman, the head of any such agency is authorized to detail or assign, on a reimbursable basis or otherwise, any of the personnel of such agency to the Project to assist it in carrying out its responsibilities under this Act. (e) The Project shall have exclusive authority with respect to the establishment or approval of programs or projects initiated under this Act, but the agency involved in any particular program or project shall be responsible for the operation and administration of such pro- gram or project. (f) The National Aeronautics and Space Administration is author- ized Project. to undertake and carry out those programs assigned to it by the RESOURCE DETERMINATION AND ASSESSMENT SEC. 5. (a) The Chairman shall initiate a solar energy resource deter- mination and assessment program with the objective of making a regional and national appraisal of all solar energy resources, includ- ing data on insolation, wind, sea thermal gradients, and potentials for photosynthetic conversion. The program shall emphasize identifi- cation of promising areas for commercial exploitation and develop- ment. The specific goals shall include- (1) the development of better methods for predicting the avail- ability of all solar energy resources, over long time periods and by geographic location; (2) the development of advanced meteorological, oceano- graphic, and other instruments, methodology, and procedures necessary to measure the quality and quantity of all solar resources on periodic bases; (3) the development of activities, arrangements, and proce- dures for the collection, evaluation, and dissemination of informa- tion and data relating to solar energy resource assessment. (b) The Chairman, acting through the National Aeronautics and Space Administration, the National Oceanic and Atmospheric Admin- istration, and other appropriate agencies, shall- (1) develop and carry out a general plan for inventorying all forms of solar energy resources associated with Federal lands and (where consistent with property rights) non-Federal lands; (2) conduct regional surveys based upon such general plan, using innovative meteorological, oceanographic, and space-related techniques, in sufficient numbers to lead to a national inventory of solar energy resources in the United States; (3) publish and make available maps, reports, and other docu- ments developed from such surveys to encourage and facilitate the commercial development of solar energy resources; and (4) make such recommendations for legislation as may appear to be necessary to establish policies for solar resources involving Federal lands and waters, consistent with known inventories of various resource types, with the state of technologies for solar energy development, and with evaluation of the environmental impacts of such development. RESEARCH AND DEVELOPMENT SEC. 6. (a) The Chairman shall initiate a research and development program for the purpose of resolving the major technical problems inhibiting commercial utilization of solar energy in the United States. S. 3234-4 (b) In connection with or as a part of such program, the Chairman shall- (1) conduct, encourage, and promote scientific research and studies to develop effective and economical processes and equip- ment for the purpose of utilizing solar energy in an acceptable manner for beneficial uses; (2) carry out systems, economic, social, and environmental studies to provide a basis for research, development and demon- stration planning and phasing; and (3) perform or cause to be performed technology assessments relevant to the utilization of solar energy. (c) The specific solar energy technologies to be addressed or dealt with in the program shall include- (1) direct solar heat as a source for industrial processes, including the utilization of low-level heat for process and other industrial purposes; (2) thermal energy conversion, and other methods, for the gen- eration of electricity and the production of chemical fuels; (3) the conversion of cellulose and other organic materials (including wastes) to useful energy or fuels; (4) photovoltaic and other direct conversion processes: (5) sea thermal gradient conversion; (6) windpower conversion; (7) solar heating and cooling of housing and of commercial and public buildings; and (8) energy storage. DEMONSTRATION SEC. 7. (a) The Chairman is authorized to initiate a program to design and construct, in specific solar energy technologies (including, but not limited to, those listed in section (6) (c), facilities or power- plants of sufficient size to demonstrate the technical and economic feasibility of utilizing the various forms of solar energy. The specific goals of such programs shall include- (1) production of electricity from a number of powerplants, on the order of one to ten megawatts each; (2) production of synthetic fuels in commercial quantities; (3) large-scale utilization of solar energy in the form of direct heat; (4) utilization of thermal and all other byproducts of the solar facilities; (5) design and development of hybrid systems involving the concomitant utilization of solar and other energy sources; and (6) the continuous operation of such plants and facilities for a period of time. (b) For each of the technologies for which a successful and appro- priate development program is completed, the Chairman shall make a determination to proceed to demonstration based on criteria includ- ing, but not necessarily limited to, the following: (1) the technological feasibility of the project; (2) the costs and benefits of the project, as determined by an economic assessment; (3) the immediate and the potential uses of the solar energy utilized in the project; (4) long-term national need for the technology; (5) environmental impact; S. 3234-5 (6) potential for technology transfer to other applications; and (7) the nature and extent of Federal participation, if any, in the project. (c) In carrying out his responsibilities under this section, the Chairman, acting through the appropriate Federal agencies, may provide for the establishment of one or more demonstration projects utilizing each form of solar energy, which shall include, as appro- priate, the specific research, development, pilot plant construction and operation, demonstration plant construction and operation, and other facilities and activities which may be necessary to show commercial viability of the specific solar technology. (d) The Chairman, acting through the appropriate Federal agen- cies, is authorized to investigate and enter into agreements for the cooperative development of facilities to demonstrate solar technol- ogies. The responsible Federal agency may consider- (1) cooperative agreements with non-Federal entities for con- struction of facilities and equipment to demonstrate solar energy technologies; and (2) cooperative agreements with other Federal agencies for the construction of facilities and equipment and operation of facilities to produce energy for direct Federal utilization. (e) The Chairman, acting through appropriate Federal agencies is authorized to construct and operate demonstration projects without entering into cooperative agreements with respect to such projects, if the Chairman finds that- (1) the nature of the resource, the geographical location, the scale and engineering design of the facilities, the techniques of production, or any other significant factor of the specific demon- stration project offers opportunities to make important contribu- tions to the general knowledge of solar resources, the techniques of its development, or public confidence in the technology; and (2) there is no opportunity for cooperative agreements with any non-Federal entity willing and able to cooperate in the demonstration project under subsection (d) (1), and there is no opportunity for cooperative agreements with other Federal agen- cies under subsection (d) (2). (f) If the estimate of the Federal investment with respect to con- struction and operation costs of any demonstration project proposed to be established under this section exceeds $20,000,000, no amount may be appropriated for such project except as specifically authorized by legislation hereafter enacted by the Congress. (g) (1) At the conclusion of any demonstration project established under this section, or as soon thereafter as may be practicable, the responsible Federal agencies shall, by sale, lease, or otherwise, dispose of all Federal property interests which they have acquired pursuant to this section in accordance with existing law and the terms of the cooperative agreements involved. (2) The agency involved shall, under appropriate agreements or other arrangements, provide for the disposition of electricity, syn- thetic fuels, and other byproducts of the project administered by such agency. SOLAR ENERGY TECHNOLOGY UTILIZATION SEC. 8. (a) (1) In carrying out his functions under this Act the Chairman, utilizing the capabilities of the National Science Founda- tion, the National Aeronautics and Space Administration, the Depart- ment of Commerce, the Atomic Energy Commission, and other appropriate Federal agencies to the maximum extent possible, shall S. 3234-6 establish and operate a Solar Energy Information Data Bank (here- inafter in this subsection referred to as the "bank") for the purpose of collecting, reviewing, processing, and disseminating information and data in all of the solar energy technologies referred to in section 7(c) in a timely and accurate manner in support of the objectives of this Act. (2) Information and data compiled in the bank shall include- (A) technical information (including reports, journal articles, dissertations, monographs, and project descriptions) on solar energy research, development, and applications; (B) similar technical information on the design, construction, and maintenance of equipment utilizing solar energy; (C) general information on solar energy applications to be disseminated for popular consumption; (D) physical and chemical properties of materials required for solar energy activities and equipment; and (E) engineering performance data on equipment and devices utilizing solar energy. (3) In accordance with regulations prescribed under section 12, the Chairman shall provide retrieval and dissemination services with respect to the information described under paragraph (2) for- (A) Federal, State, and local government organizations that are active in the area of energy resources (and their contractors) ; (B) universities and colleges in their related research and con- sulting activities; and (C) the private sector upon request in appropriate cases. (4) In carrying out his functions under this subsection, the Chair- man shall utilize, when feasible, the existing data base of scientific and technical information in Federal agencies, adding to such data base any information described in paragraph (2) which does not already reside in such base. He shall coordinate or merge this data bank with other Federal energy information data banks as necessary to assure efficient and effective operation. (b) In carrying out his functions under this Act the Chairman shall perform or cause to be performed studies and research on incen- tives to promote broader utilization and consumer acceptance of solar energy technologies. (c) The Chairman shall enter into such arrangements and take such other steps as may be necessary or appropriate to provide for the effec- tive coordination of solar energy technology utilization with all other technology utilization programs within the Federal Government. SCIENTIFIC AND TECHNICAL EDUCATION SEC. 9. The Chairman, acting through the National Science Foun- dation, is authorized and directed to support programs of education in the sciences and engineering to provide the necessary trained per- sonnel to perform the solar energy research, development, and dem- onstration activities required under this Act. Such support may include fellowships, traineeships, technical training programs, tech- nologist training programs, and summer institute programs. SOLAR ENERGY RESEARCH INSTITUTE SEC. 10. (a) There is established a Solar Energy Research Insti- tute, which shall perform such research, development, and related functions as the Chairman may determine to be necessary or appro- priate in connection with the Project's activities under this Act or to be otherwise in furtherance of the purpose and objectives of this Act. (b) The Institute may be located (as designated by the Chairman) S. 3234-7 at any new or existing Federal laboratory (including a non-Federal laboratory performing functions under a contract entered into with the Project or with any of the agencies represented in the Project as well as a laboratory whose personnel are Federal employees). INTERNATIONAL COOPERATION SEC. 11. (a) The Chairman, in furtherance of the objectives of this Act, is authorized to cooperate and participate jointly with other nations, especially those with agreements for scientific cooperation with the United States, in the following activities: (1) interinstitutional, bilateral, or multilateral research proj- ects in the field of solar energy; and (2) agreements and programs which will facilitate the exchange of information and data relating to solar energy resource assess- ment and solar energy technologies. (b) The National Science Foundation is authorized to encourage, to the maximum extent practicable and consistent with the other objec- tives of this Act, international participation and cooperation in the development and maintenance of programs of education to carry out the policy set forth in section 9. REGULATIONS SEC. 12. The Chairman, in consultation with the heads of the Federal agencies having functions under this Act and with other appropriate officers and agencies, shall prescribe such regulations as may be neces- sary or appropriate to carry out this Act promptly and efficiently. Each such officer or agency, in consultation with the Chairman, may prescribe such regulations as may be necessary or appropriate to carry out his or its particular functions under this Act promptly and efficiently. ANNUAL REPORTS SEC. 13. The Chairman shall report, on an annual basis, to the Presi- dent and the Congress all actions taken under the provisions of this Act, all action planned for the ensuing year, and, to the extent practi- cal, a projection of activities and funding requirements, for the ensuing five years. The Chairman also shall recommend, as he deems appropriate, any legislation or reorganization which might further the purposes of this Act. INFORMATION TO CONGRESS SEC. 14. Notwithstanding any other provision of law, the Chairman (or the head of any agency which assumes the functions of the Project pursuant to section 16) shall keep the appropriate committees of the House of Representatives and the Senate fully and currently informed with respect to all activities under this Act. COMPREHENSIVE PROGRAM DEFINITION SEC. 15. (a) The Chairman is authorized and directed to prepare a comprehensive program definition of an integrated effort and com- mitment for effectively developing solar energy resources. The Chair- man, in preparing such program definition, shall utilize and consult with the appropriate Federal agencies, State and local government agencies, and private organizations. (b) The Chairman shall transmit such comprehensive program definition to the President and to each House of the Congress. An S. 3234-8 interim report shall be transmitted not later than March 1, 1975. The comprehensive program definition shall be transmitted as soon as possible thereafter, but in any case not later than June 30, 1975. TRANSFER OF FUNCTIONS SEC. 16. Within sixty days after the effective date of the law creat- ing a permanent Federal organization or agency having jurisdiction over the energy research and development functions of the United States (or within sixty days after the date of the enactment of this Act if the effective date of such law occurs prior to the date of the enactment of this Act), all of the authorities of the Project and all of the research and development functions (and other functions except those related to scientific and technical education) vested in Federal agencies under this Act along with related records, documents, per- sonnel, obligations, and other items, to the extent necessary or appro- priate, shall, in accordance with regulations prescribed by the Office of Management and Budget, be transferred to and vested in such orga- nization or agency. AUTHORIZATION OF APPROPRIATIONS SEC. 17. To carry out the provisions of this Act, there are authorized to be appropriated— (1) for the fiscal year ending June 30, 1976, $75,000,000; (2) for subsequent fiscal years, only such sums as the Congress hereafter may authorize by law; (3) such amounts as may be authorized for the construction of demonstrations pursuant to section 7(f) of this Act; and (4) to the National Science Foundation for the fiscal year end- ing June 30, 1975, not to exceed $2,000,000 to be made available for use in the preparation of the comprehensive program defini- tion under section 15. Speaker of the House of Representatives. Vice President of the United States and President of the Senate. HH 1 October 17, 1974 Dear Mr. Director: The following bills were received at the White House on October 17th: S.J. Res. 236 S. 2840 H.R. 7768 H.R. 14225 S.J. Res. 250 S. 3007 H.R. 7780 H.R. 14597 S.J. Res. 251 S. 3234 H.R. 11221 H.R. 15148 S. 355 S. 3473 H.R. 11251 H.R. 15427 S. 605 S. 3698 H.R. 11452 H.R. 15540 S. 628 S. 3792 H.R. 11830 H.R. 15643 S. 1411 S. 3838 H.R. 12035 H.R. 16857 S. 1412 S. 3979 H.R. 12281 H.R. 17027 S. 1769 H.R. 6624 H.R. 13561 S. 2348 H.R. 6642 H.R. 13631 Please let the President have reports and recommendations as to the approval of these bills as soon as possible. Sincerely, Robert D. Linder LIBRARY GERALD : FORD Chief Executive Clerk The Honorable Roy L. Ash Director Office of Management and Budget Washington, D. C.