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Energy - President's Program (2)
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Energy - President's Program (2)
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Vernon C. Loen and Charles Leppert Files
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The original documents are located in Box 8, folder "Energy - President's Program (2)" of the Loen and Leppert Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. RED TAG Digitized from Box 8 of the Loen and Leppert Files at the Gerald R. Ford Presidential Library THE WHITE HOUSE WASHINGTON February 15, 1975 MEMORANDUM FOR: JACK MARSH MAX FRIEDERSDORF FROM: CHARLES LEPPERT, JR. CLg. SUBJECT: Format for Dingell Hearings on the President's Energy Program February 17, 1975 The format for the Dingell hearings on the President's Energy Program on Monday, February 17, 1975, subject to last minute changes, will be as follows: (1) The hearings will commence at 10:00 a. m., Monday, February 17, 1975 in Room 2123 Rayburn House Office Building. (2) Chairman John Dingell will open the hearings with an opening statement on the purpose of the hearings, etc. (3) The Administration witness panel consisting of Alan Greenspan, Frank Zarb, and Tom Enders will each proceed with a statement on the President's energy program, its implication and impacts of approxi- mately ten (10) to fifteen (15) minutes duration and respond to questions from Members as a panel. (4) Mr. Greenspan will be excused at approximately 12 clock noon to 12:30 p.m. (5) Mr. Zarb and Mr. Enders should be prepared to return after a luncheon break to resume the hearings at 2 p.m. (6) Mr. Simon is expected to present his testimony upon arrival between 2 - 2:30 p.m. and respond to questions of Members along with Mr. Zarb and Mr. Enders as a panel. (7) ABC-TV will provide television coverage of the hearings on Monday, February 17th in addition to other media coverage. 2 (8) I am advised that the Enders article "Agreement to Share Oil In New Cutoff Defended" appearing in the Washington Post, Saturday, February 15th will provoke some questions from Members. cc: Secretary Morton Secretary Simon Asst. Sec. Tom Enders Chairman Greenspan Administrator Zarb W.H. - Seidman Cavanaugh Loen Schleede RED TAG THE WHITE HOUSE WASHINGTON February 15, 1975 MEMORANDUM FOR: JACK MARSH MAX FRIEDERSDORF FROM: CHARLES LEPPERT, JR. CLg. SUBJECT: Format for Dingell Hearings on the President's Energy Program February 17, 1975 The format for the Dingell hearings on the President Energy Program on Monday, February 17, 1975, subject to last minute changes, will be as follows: (1) The hearings will commence at 10:00 a. m., Monday, February 17, 1975 in Room 2123 Rayburn House Office Building. (2) Chairman John Dingell will open the hearings with an opening statement on the purpose of the hearings, etc. (3) The Administration witness panel consisting of Alan Greenspan, Frank Zarb, and Tom Enders will each proceed with a statement on the President's energy program, its implication and impacts of approxi- mately ten (10) to fifteen (15) minutes duration and respond to questions from Members as a panel. (4) Mr. Greenspan will be excused at approximately 12 o'clock noon to 12:30 p.m. (5) Mr. Zarb and Mr. Enders should be prepared to return after a luncheon break to resume the hearings at 2 p.m. (6) Mr. Simon is expected to present his testimony upon arrival between 2 - 2:30 p.m. and respond to questions of Members along with Mr. Zarb and Mr. Enders as a panel. (7) ABC-TV will provide television coverage of the hearings on Monday, February 17th in addition to other media coverage. 2 (8) I am advised that the Enders article "Agreement to Share Oil In New Cutoff Defended" appearing in the Washington Post, Saturday, February 15th will provoke some questions from Members. cc: Secretary Morton Secretary Simon Asst. Sec. Tom Enders Chairman Greenspan Administrator Zarb W.H. - Seidman Cavanaugh Loen Schleede THE WHITE HOUSE WASHINGTON February 18, 1975 TO: VERN LOEN CHARLES LEPPERT MIKE DUVAL FROM: Glenn Schleede Attached for your information. cc: Eric Fygi Jim Rubin Referred to Commerce Carte (House) as as oficial Executive Communication UNITED PROTECTION STATES AGENCY UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. 20460 February 10, 1975 OFFICE OF THE ADMINISTRATOR Dear Mr. Speaker: On January 30, 1975, the President transmitted to the Congress a proposed omnibus energy bill -- the Energy Independence Act of 1975. Included within this proposed omnibus bill are several amendments to the Clean Air Act. It has been brought to my attention that during the final stages of preparation of this omnibus bill for transmittal to the Congress, certain material was inadvertently left out of the final package. Attached is the material which should be placed in the omnibus bill at the appropriate point in Title V - Clean Air Act Amendments of 1975, Section 503-Automobile emission standards. Sincerely yours, /s/ Russell E. Train Russell E. Train Administrator Honorable Carl Albert Speaker of the House House of Representatives Washington, D.C. 20505 Enclosure ATTACHMENT " (d) Section 202 (b) (1) (B) is further amended to delete the fourth sentence and insert the following in lieu thereof: "The regulations under subsection (a) applicable to emissions of oxides of nitrogen from light-duty vehicles and engines manufactured during model years 1977 through 1981, inclusive, shall con- tain standards equivalent to the emission standards for this pollutant that apply to new vehicles and engines offered for sale in all of the States (except California) during the model year 1975." RED TAG THE WHITE HOUSE WASHINGTON February 20, 1975 MEMORANDUM FOR: MAX FRIEDERSDORF THRU: VERN LOEN or FROM: CHARLES LEPPERT, JR. SUBJECT: Proposed Ullman - Committee on Ways and Means Energy Hearings John Meagher called to state that A1 Ullman is planning two (2) weeks of panel hearings on the total energy situation starting March 3 or 10. No public announcement has been made of these panel hearings yet. Administration witnesses will not be asked to testify until after the panels have been heard by the Committee. The panel hearings will be televised but no decision has been made on live television. Meagher has asked me to supply him with a list of non-administration witnesses who can testify on all aspects of the energy situation by noon, Friday, February 21st, who are favorable to the President's energy program and can rebut the testimony of panelists called by Ullman and the Majority in opposition to the President's energy program. Meagher has asked that we not publicize our assistance so that it does not appear that the Administration has named the witnesses to be called by the Committee Minority. Do we have names of non-administration people who assisted in putting the President's energy program together who could fill this role? I have asked Duval, Schleede and Eric Zausner for this information. THE WHITE HOUSE WASHINGTON February 20, 1975 MEMORANDUM FOR: GLENN SCHLEEDE THRU: MAX FRIEDERSDORF VERN LOEN FROM: CHARLES LEPPERT, JR. ag. SUBJECT: Omission of Sec. 503(d) auto emission standards from the Omnibus Energy Bill - H. R. 2650 The House Parliamentarian informs me that the Train letter to the Speaker on the omission of section 503(d) has been referred to the House Interstate Committee as an official Executive Communication. In addition, I have checked this with Dennis Taylor, Mr. Rhodes legislative assistant who states that section 503(d) should have been printed in the Rhodes bill H. R. 2650. Both Taylor and the House Parliamentarian have requested the official papers to determine if it is a GPO printing error. I have just received word that Mr. Rhodes is requesting that H. R. 2650 be reprinted inserting Sec. 503(d) which was left out of the original printing of the bill inadvertently by GPO. New Section 503(d) - to be in sented on p.49 (d) Section 202 (b)(1)(B) is further amended to delete the fourth sentence and insert the following in lieu thereof: "The regulations under subsection (a) applicable to emissions of oxides of nitrogen from light duty vehicles and engines manufactured during model years 1977 through 1981, inclusive, shall contain standards equivalent to the emission standards for this pollutant that apply to new vehicles and engines offered for sale in all of the States (except California) during the model year 1975." - 48A- THE WHITE HOUSE WASHINGTON February 22, 1975 MEMORANDUM FOR: JOHN O. MARSH MAX L. FRIEDERSDORF THRU: VERN LOEN VL FROM: DOUGLAS P. BENNETT DPB SUBJECT: President's Energy Plan During a conversation with Chuck Wiggins yesterday, he gave me an actual example of how the President's energy conserva- tion plan actually worked for a California family. A Los Angeles Times reporter, who had gasoline credit cards for himself and his family, had figured out the actual amount of gasoline consumed each month. He took his wife's credit cards away and gave her a like amount each month. He found that be- cause she was making a free economic choice she elected to spend less on gasoline and reduced the gasoline consumption by 1/3 thus spending the money on other things of her choice. This strikes me as a very interesting example on how the Presi- dent's program can work and it might be useful for public use sometime in the future. THE WHITE HOUSE WASHINGTON February 24, 1975 MEMORANDUM FOR: JOHN O. MARSH THRU: MAX FRIEDERSDORF VERNON LOEN VL FROM: CHARLES LEPPERT, JR. SUBJECT: Report on Dingell Hearings on the President's Energy Program The information contained in this report is a subcommittee minority staff appraisal of the hearings and are reported by the panels appearing. Administration Panel The general consensus was that the Administration did not present a strong case for its energy programs. Specifically, the Administration witnesses failed to establish a case or clear cut requirement for the need to reduce oil imports by one million barrels per day by the end of 1975 and by two million barrels before the end of 1977. The numbers put forth did not support a clear case to reduce imports and the national security argument was not made well. More information needs to be supplied to the subcommittee specifically a chart requested by Representative Heinz showing the actions required by the President's energy program for each different energy source and its impact on the economy by energy source on a year by year basis. Economist Panel In general the panel of three (3) economists opposed the President's energy program. Mr. Perry opposed the duty on oil imports and an excise tax on domestic oil. He favors a two-tier price system for domestic production. Opposes a windfall profits tax but favors deregulation of natural gas, establishment of import quotas and a bidding system with foreign oil producers as a method of breaking up the OPEC cartel. -2- Mr. Owens opposes the President's imposition of oil import tariffs and rationing. He favors going to a import quota system gradually while retaining the mandatory allocation program and a gradual de- control of old oil with a phase out of the two-tier pricing system. The Subcommittee has requested the Treasury Department for an analysis of his testimony as to its tax aspects. Mr. Adelman supported his own theory of requiring the OPEC cartel to bid on providing the U.S. with oil. Auto Industry Panel Chrysler supported the amendments to the clean air act and stated it could not voluntarily meet the standards without the delays requested by the President. General Motors supported the President's program in its "broad thrust" and favored the decontrol of old oil. Ford supports the Presi dent's reliance on the price mechanism and the deregulation of old oil but states that the program should be implemented on a gradual basis. Ford supported the clean air act amendments and called for less stringent ones. United Auto Workers Panel Opposed the President's use of the price mechanism as inflationary. Stated the drastic reductions of the President's program are not called for under present economic conditions. Opposed the deregulation of natural gas, favored a multi-tier pricing system and enforcement of anti-trust laws against energy companies. Utilities Panel Opposed increase in oil import tariffs. Some supported oil import quotas. Supported revision of rate structures, facility siting and clean air act amendments. Opposed the decontrol of natural gas. Energy Producers Panel Supported generally the decontrol of old oil but opposed the windfall profits tax without meaningful plowback provisions. Supported the deregulation of natural gas. -3- Industrial Consumers Panel Stated there was no need to cut back on consumption as rapidly as proposed in the President's program. Stro ngly supported voluntary conservation as still possible and citing the previous embargo. Un- clear on the deregulation of natural gas and old oil. State Government Panel Opposed the President's program and the decontrol of old oil. Supported an extension of the mandatory allocation program. Local Government Panel Favored conservation of energy on a voluntary basis and opposed the decontrol of old oil. Consumers Panel Opposed the President's program as too expensive and inflationary. Opposed the imposition of oil import tariffs and deregulation of natural gas. Supported an import quota system on foreign oil. Transportation Panel The railroads, water carriers, truckers all stated that the President's program will require rate increases. The Airlines stated their need for an exemption because the President's program will cost the airlines $900 million per year. Petrochemical Users Panel Stated a need for an exemption from the excise taxes and any tax on feedstocks should be eliminated. Panel on Policy Alternatives Mr. Peter Peterson supported the decontrol of old oil gradually. Supported the windfall profits tax if tied to plowback provisions. Called for mandatory conservation for heating and lighting. -4- Mr. John Sawhill stated that the President's program requires too much in a weakened economy. Does not favor price decontrol of old oil but a gradual abandonment of the two-tier price system to a single ceiling price for all oil and let the old oil price rise 10 percent a year to the ceiling. A copy of the list of witnesses appearing before the Dingell Subcommittee is attached. The Dingell Subcommittee now plans to begin hearings and mark-up of Title XIII, "Standby Energy Authorities" of the President's program on March 3rd. Dingell will use his own bill H.R. 2991 as the mark- up bill. Attachment THE WHITE HOUSE WASHINGTON February 24, 1975 MEMORANDUM FOR: JOHN O. MARSH THRU: MAX FRIEDERSDORF VERNON LOEN VL FROM: CHARLES LEPPERT, JR. SUBJECT: Report on Dingell Hearings on the President's Energy Program The information contained in this report is a subcommittee minority staff appraisal of the hearings and are reported by the panels appearing. Administration Panel The general consensus was that the Administration did not present a strong case for its energy programs. Specifically, the Administration witnesses failed to establish a case or clear cut requirement for the need to reduce oil imports by one million barrels per day by the end of 1975 and by two million barrels before the end of 1977. The numbers put forth did not support a clear case to reduce imports and the national security argument was not made well. More information needs to be supplied to the subcommittee specifically a chart requested by Representative Heinz showing the actions required by the President's energy program for each different energy source and its impact on the economy by energy source on a year by year basis. Economist Panel In general the panel of three (3) economists opposed the President's energy program. Mr. Perry opposed the duty on oil imports and an excise tax on domestic oil. He favors a two-tier price system for domestic production. Opposes a windfall profits tax but favors deregulation of natural gas, establishment of import quotas and a bidding system with foreign oil producers as a method of breaking up the OPEC cartel. -2- Mr. Owens opposes the President's imposition of oil import tariffs and rationing. He favors going to a import quota system gradually while retaining the mandatory allocation program and a gradual de- control of old oil with a phase out of the two-tier pricing system. The Subcommittee has requested the Treasury Department for an analysis of his testimony as to its tax aspects. Mr. Adelman supported his own theory of requiring the OPEC cartel to bid on providing the U.S. with oil. Auto Industry Panel Chrysler supported the amendments to the clean air act and stated it could not voluntarily meet the standards without the delays requested by the President. General Motors supported the President's program in its "broad thrust" and favored the decontrol of old oil. Ford supports the President's reliance on the price mechanism and the deregulation of old oil but states that the program should be implemented on a gradual basis. Ford supported the clean air act amendments and called for less stringent ones. United Auto Workers Panel Opposed the President's use of the price mechanism as inflationary. Stated the drastic reductions of the President's program are not called for under present economic conditions. Opposed the deregulation of natural gas, favored a multi-tier pricing system and enforcement of anti-trust laws against energy companies. Utilities Panel Opposed increase in oil import tariffs. Some supported oil import quotas. Supported revision of rate structures, facility siting and clean air act amendments. Opposed the decontrol of natural gas. Energy Producers Panel Supported generally the decontrol of old oil but opposed the windfall profits tax without meaningful plowback provisions. Supported the deregulation of natural gas. -3- Industrial Consumers Panel Stated there was no need to cut back on consumption as rapidly as proposed in the President's program. Stro ngly supported voluntary conservation as still possible and citing the previous embargo. Un- clear on the deregulation of natural gas and old oil. State Government Panel Opposed the President's program and the decontrol of old oil. Supported an extension of the mandatory allocation program. Local Government Panel Favored conservation of energy on a voluntary basis and opposed the decontrol of old oil. Consumers Panel Opposed the President's program as too expensive and inflationary. Opposed the imposition of oil import tariffs and deregulation of natural gas. Supported an import quota system on foreign oil. Transportation Panel The railroads, water carriers, truckers all stated that the President's program will require rate increases. The Airlines stated their need for an exemption because the President's program will cost the airlines $900 million per year. Petrochemical Users Panel Stated a need for an exemption from the excise taxes and any tax on feedstocks should be eliminated. Panel on Policy Alternatives Mr. Peter Peterson supported the decontrol of old oil gradually. Supported the windfall profits tax if tied to plowback provisions. Called for mandatory conservation for heating and lighting. -4- Mr. John Sawhill stated that the President's program requires too much in a weakened economy. Does not favor price decontrol of old oil but a gradual abandonment of the two-tier price system to a single ceiling price for all oil and let the old oil price rise 10 percent a year to the ceiling. A copy of the list of witnesses appearing before the Dingell Subcommittee is attached. The Dingell Subcommittee now plans to begin hearings and mark-up of Title XIII, "Standby Energy Authorities" of the President's program on March 3rd. Dingell will use his own bill H.R. 2991 as the mark- up bill. Attachment THE WHITE HOUSE WASHINGTON February 24, 1975 MEMORANDUM FOR: JOHN O. MARSH THRU: MAX FRIEDERSDORF VERNON LOEN VL FROM: CHARLES LEPPERT, JR. SUBJECT: Report on Dingell Hearings on the President's Energy Program The information contained in this report is a subcommittee minority staff appraisal of the hearings and are reported by the panels appearing. Administration Panel The general consensus was that the Administration did not present a strong case for its energy programs. Specifically, the Administration witnesses failed to establish a case or clear cut requirement for the need to reduce oil imports by one million barrels per day by the end of 1975 and by two million barrels before the end of 1977. The numbers put forth did not support a clear case to reduce imports and the national security argument was not made well. More information needs to be supplied to the subcommittee specifically a chart requested by Representative Heinz showing the actions required by the President's energy program for each different energy source and its impact on the economy by energy source on a year by year basis. Economist Panel In general the panel of three (3) economists opposed the President's energy program. Mr. Perry opposed the duty on oil imports and an excise tax on domestic oil. He favors a two-tier price system for domestic production. Opposes a windfall profits tax but favors deregulation of natural gas, establishment of import quotas and a bidding system with foreign oil producers as a method of breaking up the OPEC cartel. -2- Mr. Owens opposes the President's imposition of oil import tariffs and rationing. He favors going to a import quota system gradually while retaining the mandatory allocation program and a gradual de- control of old oil with a phase out of the two-tier pricing system. The Subcommittee has requested the Treasury Department for an analysis of his testimony as to its tax aspects. Mr. Adelman supported his own theory of requiring the OPEC cartel to bid on providing the U.S. with oil. Auto Industry Panel Chrysler supported the amendments to the clean air act and stated it could not voluntarily meet the standards without the delays requested by the President. General Motors supported the President's program in its "broad thrust" and favored the decontrol of old oil. Ford supports the President's reliance on the price mechanism and the deregulation of old oil but states that the program should be implemented on a gradual basis. Ford supported the clean air act amendments and called for less stringent ones. United Auto Workers Panel Opposed the President's use of the price mechanism as inflationary. Stated the drastic reductions of the President's program are not called for under present economic conditions. Opposed the deregulation of natural gas, favored a multi-tier pricing system and enforcement of anti-trust laws against energy companies. Utilities Panel Opposed increase in oil import tariffs. Some supported oil import quotas. Supported revision of rate structures, facility siting and clean air act amendments. Opposed the decontrol of natural gas. Energy Producers Panel Supported generally the decontrol of old oil but opposed the windfall profits tax without meaningful plowback provisions. Supported the deregulation of natural gas. -3- Industrial Consumers Panel Stated there was no need to cut back on consumption as rapidly as proposed in the President's program. Stro ngly supported voluntary conservation as still possible and citing the previous embargo. Un- clear on the deregulation of natural gas and old oil. State Government Panel Opposed the President's program and the decontrol of old oil. Supported an extension of the mandatory allocation program. Local Government Panel Favored conservation of energy on a voluntary basis and opposed the decontrol of old oil. Consumers Panel Opposed the President's program as too expensive and inflationary. Opposed the imposition of oil import tariffs and deregulation of natural gas. Supported an import quota system on foreign oil. Transportation Panel The railroads, water carriers, truckers all stated that the President's program will require rate increases. The Airlines stated their need for an exemption because the President's program will cost the airlines $900 million per year. Petrochemical Users Panel Stated a need for an exemption from the excise taxes and any tax on feedstocks should be eliminated. Panel on Policy Alternatives Mr. Peter Peterson supported the decontrol of old oil gradually. Supported the windfall profits tax if tied to plowback provisions. Called for mandatory conservation for heating and lighting. -4- Mr. John Sawhill stated that the President's program requires too much in a weakened economy. Does not favor price decontrol of old oil but a gradual abandonment of the two-tier price system to a single ceiling price for all oil and let the old oil price rise 10 percent a year to the ceiling. A copy of the list of witnesses appearing before the Dingell Subcommittee is attached. The Dingell Subcommittee now plans to begin hearings and mark-up of Title XIII, "Standby Energy Authorities" of the President's program on March 3rd. Dingell will use his own bill H.R. 2991 as the mark- up bill. Attachment PRESS RELEASE FROM THE OFFICE IMMEDIATE RELEASE OF CONGRESSMAN JOHN D. DINGELL, D-MICHIGAN, 16TH DISTRICT FRIDAY, FEBRUARY 14, 1975 WITNESS LIST SELECTED FOR DINGELL ENERGY AND POWER HEARINGS Congressman John D. Dingell, D-Michigan, Chairman of the House Energy and Power Subcommittee of the Interstate and Foreign Commerce Committee today announced the witness and panel list for hearings in the Subcommittee, February 17-21. The new Subcommittee is taking testimony on President Ford's energy messages to Congress and the pressing energy problems facing the Nation and affecting all sectors of the economy. Witnesses include representatives of energy producing and consuming industries, the Federal Government, consumer groups, and State and local governments. "The Subcommittee, in these initial morning and afternoon hearings, is seeking a complete overview of the energy supply, distribution and user demand problems," stated Chairman Dingell. He added, "Following the week of overview on energy matters, the Subcommittee will make determinations as to which specific energy proposals, legislation, alternatives and recommendations will receive our attention first." The witnesss list is attached. (MORE) WITNESS LIST HEARINGS ON PRESIDENTIAL ENERGY PROGRAM Monday, February 17 - Room 2123 Rayburn House Office Building 10 a.m. Administration Witnesses: Honorable William E. Simon, Secretary, Department of the Treasury (tentative) accompanied by -- Honorable Ed Fiedler, Assistant Secretary for Economic Policy Honorable Frank Zarb, Administrator, Federal Energy Administration Honorable Thomas Enders, Assistant Secretary for Economic Affairs, Department of State Honorable Alan Greenspan, Chairman, Council of Economic Advisors Tuesday, February 18 - Room 2123 Rayburn House Office Building 2 p.m. Panel of Economists: George L. Perry, Senior Fellow, Brookings Institution Charles R. Owens, Charles Owens and Associates M. A. Adelman, Massachusetts Institute of Technology Thursday, February 20 - Room 2123 Rayburn House Office Building 10 a.m. Auto Industry Panel: Chrysler, Ford, General Motors, American Motors United Auto Workers - Duane (Pat) Greathouse, Vice President Utilities Panel: Thomas J. Galligan, Jr., Boston Edison Company W. Donham Crawford, President, Edison Electric Institute Alex Radin, American Public Power Association Ben Fuqua, Florida Power and Light Company 2 p.m. Energy Producers Panel: Frank Ikard, President, American Petroleum Institute Bud Lawrence, Vice President, American Gas Association Carl Bagge, President, National Coal Association C. John Miller, President, Independent Petroleum Association of America Walter Rogers, President, Interstate Natural Gas Association of America Industrial Consumers Panel: National Association of Manufacturers - witnesses to be announced Milton Stewart, National Small Business Association - 2 - Friday, February 21 - - Room 2123 Rayburn House Office Building 10 a.m. State Government Panel: Honorable Thomas P. Salmon, Governor of the State of Vermont and Chairman, National Governors Conference Committee on Natural Resources and Environmental Management Honorable Dolph Briscoe, Governor of the State of Texas Local Government Panel: Conference of Mayors - witnesses to be announced League of Cities - - witnesses to be announced National Association of Counties witnesses to be announced Consumers Panel: Garry DeLoss Lee Cary White, DeLoss, Consumer Public Federation Interest Research of America Center Group Witness to be announced - Farm Bureau Jim Cubie, Congress Watch 2 p.m. Transportation Industry Panel: Paul Ignatius, Air Transport Association Carl Lyon, American Association of Railroads Charles Webb, National Association of Motor Bus Operators William A. Bresnahan, American Trucking Association John Creedy, Water Transport Association Bill Stokes, American Public Transit Association Petrochemical Users Panel: Witnesses to be announced Panel on Policy Alternatives: Honorable John Sawhill, Former Administrator, Federal Energy Administration Honorable Peter Peterson, Chairman of the Board, Lehman Brothers, Former Secretary of Commerce THE WHITE HOUSE WASHINGTON Charlie -- Mike Duval's office called to say that there will be a meeting today - 2/12/75 Ken Cole's Office - 2nd Flr. West Wing 11:30 a. m. - brief meeting - about 15 minutes Subject - Dingell Hearings Participants - Ken Cole Jim Cavanaugh -P Frank Zarb-P Wm. Seidman -P Mike Duval - P GLENN SCHEEME P JERRY WARREN - Duval wants you to extend an invitation to Max Friedersdorf to attend the meeting. LEPPERT-P. Neta 2/12/75 For 2- 17-75 ZARB - FEA HICKMAN- GARDNER. - TRESY. - ED FIEDLER ENDERS - STATE FORD is LIBRARY 038470 THE WHITE HOUSE WASHINGTON February 11, 1975 MEMORANDUM FOR: JACK MARSH MAX FRIEDERSDORF THRU: VERN LOEN FROM: CHARLES LEPPERT, JR. CLg. SUBJECT: Dingell Hearings On President's Energy Program - Suggested Witness List Attached for your information is the proposed witness list for the hearings on the President's energy program before the Subcommittee on Energy and Power of the House Interstate and Foreign Commerce Committee and Chaired by John Dingell. At the request of Mike Duval and Glenn Schleede we had the two principal sub- committee staff people for a working lunch here at the White House Mess. The purpose of the working lunch was to give Duval and Schleede and the two prin- cipal staff people (Curtis and Vlcek) the opportunity to exchange information on the purpose and conduct of the hearings beginning February 17th. The Subcommittee on Energy and Power is composed of the following members: Dingell, Chairman Brown (Ohio), Ranking Minority Staggers Devine Murphy (NY) Broyhill Eckhardt Heinz Ottinger Moorhead (Calif.) Krueger Wirth Sharp Brodhead Moffett cc: Bennett SUGGESTED WITNESS LIST February 17 - Administration: Witnesses to be identified by the President [These should include Zarb; Simon: Charles Robinson, Undersecretary for Economic Affairs, Department of State] February 18 p.m. Only - Panel of Economists: John C. Sawhill, Former FEA Administrator Charles Schultze, the Brookings Institution, Former OMB Director under President Johnson George L. Perry, Senior Fellow, Brookings Institution Charles R. Owens, President of Charles Owens and Associates, consultants on energy, economics and Dublic policy, Former Deputy Assistant Administrator for Policy Planning and Regu- lation at FEA and Director of the Energy Division, Cost of Living Council Hazel Henderson, Princeton University M. A. Adelman, M.I.T. Hendrik Houthakker, Harvard University (Alan Greenspan, Council of Economic Advisors, if not present on February 17) Milton Friedman, V. of Chicago February 20 a.m. - Labor and Consumer Panel Andrew J. Biemiller, AFL-CIO Leonard Woodcock, UAW Lee White, Consumer Federation of America - Utilities Panel Thomas J. Galligan, Jr., Boston Edison Company, representing Edison Electric Institute Alex Radin, American Public Power Association Guy W. Nicholls, on behalf of New England Power Pool and New England Electric System -2- p.m. (February 20) - Energy Producers Panel Frank Ikard, American Petroleum Institute Witness to be designated, American Gas Association Carl Bagge, Coal Association Witness to be designated, Independent Petroleum Association of America - Industrial Consumers Panel Witness to be designated, National Association of Manufacturers Milton D. Stewart, National Small Business Association February 21 a.m. - Panel of State Governors Witness to be designated by National Council of Governors, with specific request for Dukakis of Mass. and Shapp of Pa. Briscoe OF Texas - Panel of Mayors and County Executives Joseph Alioto, Mayor of San Francisco and President of the United States Conference of Mayors Nicholas Panuzio, Mayor of Bridgeport, Connecticut, on behalf of the National League of Cities Witness to be designated, National Association of Counties p.m. - Panel on Transportation Paul Ignatius, President, Air Transport Association of America Witness to be designated, American Association of Railroads Witness to be designated, National Association of Motor Bus Operators Witness to be designated, American Trucking Association - Petrochemical Users Witness to be designated, PEG Witness to be designated, SOCMA - Anto Users Manufacturers AAA Agri. Business DINGELL HEARINGS Date (Feb.) Committee Action Administration Response Monday, 17th Administration witnesses Define energy problems Defining specific need for immediate action. Include international implica- tions and national defense argument. Goal - to find exactly why 1,000,000 barrels a day in '75 and 2,000,000 barrels in '77. Briefly cover how President's program solves entire problem and why it must hang together as a total package. Cover decontrol on April 1. Be prepared to respond as to whether or not the President will do this or will he com- promise. Tuesday, 18th Panel of economists Basic thrust of testimony will be that Have Greenspan join the panel the President's program does not make as a witness. economic sense, will be deflationary, will be inflationary and will severely Try to get private economists hurt the poor, etc. on panel also, such as George Schultz. Have white paper prepared on "ripple effect", impact on income levels, etc. 2 Date (Feb.) Committee Action Administration Response Weds , 19th No hearings scheduled Have major Administration PR event to make the following arguments: Labor and consumers are pro- tected under President's plan compared to other plans. Utility companies will be taken care of. State and local governments taken care of. Transportation and energy- intensive users taken care of. Thurs. , 20th Labor and consumer panel. AFL-CIO, Refer to announcements of Woodcock and Lee White. preceeding day and have sympa- thetic Congressman or Senator Utilities panel. rebut point by point, preferably during the Committee hearings. Energy producers panel (Ikard, Bagge, and somebody from the independents) Industrial consumers' panel 3 Date (Feb. ) Committee Action Administration Response Fri. , 21st State governors Consider having Governor Edwards at the White House for meeting Mayors and county executives or to meet with Morton. Transportation Get a strong statement by key airline presidents to undercut the transpor- Petrochemical tation argument. SUGGESTED WITNESS LIST February 17 - Administration: Witnesses to be identified by the President [These should include Zarb; Simon; Charles Robinson, Undersecretary for Economic Affairs, Department of State] February 18 p.m. Only - Panel of Economists: John C. Sawhill, Former FEA Administrator Charles Schultze, the Brookings Institution, Former OMB Director under President Johnson George L. Perry, Senior Fellow, Brookings Institution Charles R. Owens, President of Charles Owens and Associates, consultants on energy, economics and public policy, Former Deputy Assistant Administrator for Policy Planning and Regu- lation at FEA and Director of the Energy Division, Cost of Living Council Hazel Henderson, Princeton University M. A. Adelman, M.I.T. Hendrik Houthakker, Harvard University (Alan Greenspan, Council of Economic Advisors, if not present on February 17) Milton Friedman, V. of Chicago February 20 a.m. - Labor and Consumer Panel Andrew J. Biemiller, AFL-CIO Leonard Woodcock, UAW Lee White, Consumer Federation of America: - Utilities Panel Thomas J. Galligan, Jr., Boston Edison Company, representing Edison Electric Institute Alex Radin, American Public Power Association Guy W. Nicholls, on behalf of New England Power Pool and New England Electric System -2- p.m. (February 20) - Energy Producers Panel Frank Ikard, American Petroleum Institute Witness to be designated, American Gas Association Carl Bagge, Coal Association Witness to be designated, Independent Petroleum Association of America - Industrial Consumers Panel Witness to be designated, National Association of Manufacturers Milton D. Stewart, National Small Business Association February 21 a.m. - Panel of State Governors Witness to be designated by National Council of Governors, with specific request for Dukakis of Mass. and Shapp of Pa. Briscoe of Texas - Panel of Mayors and County Executives Joseph Alioto, Mayor of San Francisco and President of the United States Conference of Mayors Nicholas Panuzio, Mayor of Bridgeport, Connecticut, on behalf of the National League of Cities Witness to be designated, National Association of Counties p.m. - Panel on Transportation Paul Ignatius, President, Air Transport Association of America Witness to be designated, American Association of Railroads Witness to be designated, National Association of Motor Bus Operators Witness to be designated, American Trucking Association - Petrochemical Users Witness to be designated, PEG Witness to be designated, SOCMA - Anto Users Manufacturers AAA Aari Bucinecc John O. Memo for Jack March Them Mat 1 V.L. From: Cigi. huies Leppert, Jr. Subject: Report on ON Dengell Hearings onthe DINGELL President's Energy Program. The information contained Ln this report is k, Minority staff uffraised f hearings & are reported Zy the famels affer- mg. administration Pause The feveral consences was that the advincest ration did not present a strong case for in energy proge am. Sprinfically, menterned a the rusin question specifically, the adminest eation when is failed to establish a case on clear cut requirement for the need to reduce ail surports by one Million barreld you day by the ludy 1975 by two dullion burrer before the end g 1977. The number put faith did kat NATIONA support a clean ARSUM case ENT to reduce unpacts t WELL the notice security ayam. put was wh made well. More information reed the puppleed to the subcommetter specifically k cleart requested by Reg. Heing Alcowing the actions required by the Presedents every for- from for each different energy Anne & ut> impact on the leonomy by energy source on a year by year hasis. Economists Pame GERALD GERALD R. In general the pance of there(3) remonists d apposed the Presidents every program. Mr. Perry appared the duty on oil computer t in herei tax m domestic oil. He forans a two -tier price system for domutic Production. Opposen windfall projets tax but from he- regulation of Mahural far, estables human of uniport gustas + a bidding paytem with forcy ail producers as a method of treaking up the OAEL C cartel. nr. Owens apposes the Presidents importation of oil import taiff rationing He forow yours A a graduand import quara system fradually while retaining the Handalary allocation program + a gradual decentral 8 old ail with h please out after two-ter priving system. The has requested the Treasury Dept. in tax aspects ment for an analysis f his testiming as to Mr. adelman they of requiring the OPEL cartel to bid on providing the U.S. with oil. auto frductry Panel FORD is LIBRAL 075838 Chropler supported the currendments to thee clean air ach & ttated it comednal Valuntarily must the standards without the delays requested by the President. Deneral Meators Propported the Presedenti program in its "broad thrust F forwared the decontral of and ail. Fard supports the Presedents release on the price Mechanism t thes desegnlation fold OLD oil hit states that the program should be suplemented m a fradual Vasis. and supported the clean ariach amendmer to to called for less stringent 3 ones. lented Quto lookers Panel Oppose the President's use often frien Nechanism as inflationary Stated the drastic reductions after President's program are Sup called for under present lemomic conditions. Offored the deregalation of natural fas, fanared a Smelti- ter pricing Aptem f enforcement z anti- trush laws against energy companies. Utilities Panel Offered werean in ail import touffs. Aorne REVISION supported ail unifort gustas Supported redision of rate structures, faillity siting t clean an act amerdments. Offered the Resorthal of Naturalfas. Energy Producers Panel Supported generally the decentral of old oil Tuk apposed the windfall propets tax with aut meaningful almobrash Support- ed the deregulation of Matural Sas. Industrial Consumers Panel Stated there was no headto cut back on communption as rajidly as proposed in the Pre. idents program. Strongly supported voluntary conservation as still Josuble & citing the previous entaggo. Muslear on the deregulat DEREGULATION con n natural for t old oil. GERALD $.1010 4 State Somemeerat Panel Offored the Presedents program & the desmtrate 2 old ail. Supported HE an ext- encon often Mandatory allocation program. Love Government lance Janared the conservation fevergy on a voluntary basis & opposed the decemtance of ald oil. Consumers Pause Offased the President: program as to expense X Inflatromary. Offaced the imposit. con of ail import Thriffs t deregulation of natural fad. Augusted an import quota septem on foreign oil. Transportation Pance the water cameis, truchers all stated that President's program will require rate increased. The anlines stated then had for an exemption because the Presedent) awy- ram will Cost the airlines 900 Million per year, Petrochemical Users Pauel Stated a need for an exemption from the theire taxes & any tax on feedstocks FORD should be eliminated Panel m Policy alternatives LIBRARY mr. Peter Reternon supported the desmited yold ail gradually supported the windface profits day if tied to alowbach provisions. Called for Mandatory conservation for heating 4 t lighting. nu. John somenie stated the the Print Presedents prop am requires too muchin a weakend economy. Dace nat faxor price decentrol good ail mt a fradual alond- amount two ter prese system to a single ceiling Jusi for all ail + letthe old all price rise 10 percent a year to the culing. test a copy ather, witnesses appearing before the Dingel 6 attached The Dingell now flous to begin hearings & mark- up of Title XIII the Premient's hungy program "Standly Energy authorites of the Presedent: program on March 3rd. Dingell will rice his own bree HR. 2991 as the mark-up bill. GERALD R. BERALD R. FORD up Set The N Memo for Jack March the Three: Suck 7. wa. auto Industry - OK on v tampy K decentral United - in from of P program m rate luce - v derg. of hat you N musing pluce of fund. Enger - for P's program mt against taxes a form wereame prices days quat gur old air - you t windfuld uses am bad. Industreal - yant I's program Street Local Grit - apout P's peoper for pm mercases Transy. - v our weream Marl exerpted BERALOR FORD LIBRARY Person - water you f the Polter attention - Smokier- form the tripuing tarms Consumption Paterm- - price Decembral do fishwelly admin - for Pi program - Cente 1 adm have 2 made food an nembers dm 'f hald up. 3 More info Mines be provided example - Henis - no care on limit nat'l plants argument of comports to / tereem me you day so not made Gursby ppersen - ask for chart an the artim, for each of different lurgy smeen X in part P's program a la source on yr by yr basis. Economists - Perry - appared to duty on hughests a excese Pay on donister are from our ter prese uptur for donerte production - gant 8 hus hat il gas fames late w/fall pobits Pax- goraas dery. of myuta Sincer R wolding Ryten w/ forego ri producers to Trease mg 't for any in 124 break OPEC. glus services as to Owens- V. offace ratiring usperts forms paduce impax quota retain Man landy allow. program # fradal degantial w/ please onty two their pricing adelms his own them on cartel bidding to gromer U.S. w/vil GERALD R. FORD auts fudustry- - Chapler- foress An delays unit must valurty unless ever no delay as an 6M - propperts P prop am in main Q- +to eat " road them L"- form Recortive fold are the work pg w m n you Ford - from P's release on pure Muchanson - will days bel pr day places to of and ail - pistraps wholl propare plianed he due gradully favor outs mission whate exemptions but showed he less VAW struggest - offore to fuie issulation in inflatinary - drades reduction and used for tier price system anti thank no duy of unt'l jus for multi V. energy companies. Nkilities - oppose werensed capit yes - Dan for an air are unport futons form rate fixing & facility City + eleh an act Oppoin accountance of not gae Energy Produce Ruller- from decart we all are, u windfass progits smless plan bach. form deny of not's form - offaces excess tax an not x for. FORD LIBRARY is GERALD Industrial Consumers - no need h cut back as fact as P pragram valuety commission Jamble - candlem an Resentrol oldail State Gov i Panel. oxpose deentme of oldail +Cxtured allocation prof- from Magne - consention - affres deent of old oil Consumer - against P's rage an -Lu white pl. too expecience - notarify from guton n inputs, agent duy of natl goo. Transportation - RRS thank program well reg rets increase for Rd. water cancers - sume mercine rates. Tawlus - memore rates anlmes - wont exception Ppayam can "Gos m a you fetrochemessel- want exem stion from exceise tax - any they on fedstone should he climated GERALD 8. LLBRARY FORD Peterson - desntral all and jraduary forous plan bach proneur " ensuration in heat 6 cighting Inhill - toomach in Wichened Reoring. no price decombre of old are gradually above two fin price septem & return X Angle delay price for all are - entald ail pune use 12% on yr to selling THE WHITE HOUSE WASHINGTON Date: 2.20.75 TO: Chm. deppert FROM: Max L. Friedersdorf For Your Information Please Handle Please See Me Comments, Please FORD 2/20 THE WHITE HOUSE WASHINGTON Max: Does Charlie have any feedback on Dingell hearings? Jack RED TAG FEB 17 1975 THE WHITE HOUSE M WASHINGTON February 15, 1975 MEMORANDUM FOR: JACK MARSH MAX FRIEDERSDORF M FROM: CHARLES LEPPERT, JR. CLg. SUBJECT: Format for Dingell Hearings on the President's Energy Program February 17, 1975 The format for the Dingell hearings on the President's Energy Program on Monday, February 17, 1975, subject to last minute changes, will be as follows: (1) The hearings will commence at 10:00 a. m., Monday, February 17, 1975 in Room 2123 Rayburn House Office Building. (2) Chairman John Dingell will open the hearings with an opening statement on the purpose of the hearings, etc. (3) The Administration witness panel consisting of Alan Greenspan, Frank Zarb, and Tom Enders will each proceed with a statement on the President's energy program, its implication and impacts of approxi- mately ten (10) to fifteen (15) minutes duration and respond to questions from Members as a panel. (4) Mr. Greenspan will be excused at approximately 12 o'clock noon to 12:30 p.m. (5) Mr. Zarb and Mr. Enders should be prepared to return after a luncheon break to resume the hearings at 2 p.m. (6) Mr. Simon is expected to present his testimony upon arrival between 2 - 2:30 p.m. and respond to questions of Members along with Mr. Zarb and Mr. Enders as a panel. (7) ABC-TV will provide television coverage of the hearings on Monday, February 17th in addition to other media coverage. 2 (8) I am advised that the Enders article "Agreement to Share Oil In New Cutoff Defended" appearing in the Washington Post, Saturday, February 15th will provoke some questions from Members. cc: Secretary Morton Secretary Simon Asst. Sec. Tom Enders Chairman Greenspan Administrator Zarb W.H. - Seidman Cavanaugh Loen Schleede THE WHITE HOUSE WASHINGTON February 24, 1975 MEMORANDUM FOR: JOHN O. MARSH THRU: MAX FRIEDERSDORF VERNON LOEN VL FROM: CHARLES LEPPERT, JR. SUBJECT: Report on Dingell Hearings on the President's Energy Program The information contained in this report is a subcommittee minority staff appraisal of the hearings and are reported by the panels appearing. Administration Panel The general consensus was that the Administration did not present a strong case for its energy programs. Specifically, the Administration witnesses failed to establish a case or clear cut requirement for the need to reduce oil imports by one million barrels per day by the end of 1975 and by two million barrels before the end of 1977. The numbers put forth did not support a clear case to reduce imports and the national security argument was not made well. More information needs to be supplied to the subcommittee specifically a chart requested by Representative Heinz showing the actions required by the President's energy program for each different energy source and its impact on the economy by energy source on a year by year basis. Economist Panel In general the panel of three (3) economists opposed the President's energy program. Mr. Perry opposed the duty on oil imports and an excise tax on domestic oil. He favors a two-tier price system for domestic production. Opposes a windfall profits tax but favors deregulation of natural gas, establishment of import quotas and a bidding system with foreign oil producers as a FORD method of breaking up the OPEC cartel. -2- Mr. Owens opposes the President's imposition of oil import tariffs and rationing. He favors going to a import quota system gradually while retaining the mandatory allocation program and a gradual de- control of old oil with a phase out of the two-tier pricing system. The Subcommittee has requested the Treasury Department for an analysis of his testimony as to its tax aspects. Mr. Adelman supported his own theory of requiring the OPEC cartel to bid on providing the U.S. with oil. Auto Industry Panel Chrysler supported the amendments to the clean air act and stated it could not voluntarily meet the standards without the delays requested by the President. General Motors supported the President's program in its "broad thrust" and favored the decontrol of old oil. Ford supports the President's reliance on the price mechanism and the deregulation of old oil but states that the program should be implemented on a gradual basis. Ford supported the clean air act amendments and called for less stringent ones. United Auto Workers Panel Opposed the President's use of the price mechanism as inflationary. Stated the drastic reductions of the President's program are not called for under present economic conditions. Opposed the deregulation of natural gas, favored a multi-tier pricing system and enforcement of anti-trust laws against energy companies. Utilities Panel Opposed increase in oil import tariffs. Some supported oil import quotas. Supported revision of rate structures, facility siting and clean air act amendments. Opposed the decontrol of natural gas. Energy Producers Panel Supported generally the decontrol of old oil but opposed the windfall profits tax without meaningful plowback provisions. Supported the deregulation of natural gas. -3- Industrial Consumers Panel Stated there was no need to cut back on consumption as rapidly as proposed in the President's program. Stro ngly supported voluntary conservation as still possible and citing the previous embargo. Un- clear on the deregulation of natural gas and old oil. State Government Panel Opposed the President's program and the decontrol of old oil. Supported an extension of the mandatory allocation program. Local Government Panel Favored conservation of energy on a voluntary basis and opposed the decontrol of old oil. Consumers Panel Opposed the President's program as too expensive and inflationary. Opposed the imposition of oil import tariffs and deregulation of natural gas. Supported an import quota system on foreign oil. Transportation Panel The railroads, water carriers, truckers all stated that the President's program will require rate increases. The Airlines stated their need for an exemption because the President's program will cost the airlines $900 million per year. Petrochemical Users Panel Stated a need for an exemption from the excise taxes and any tax on feedstocks should be eliminated. Panel on Policy Alternatives Mr. Peter Peterson supported the decontrol of old oil gradually. Supported the windfall profits tax if tied to plowback provisions. Called for mandatory conservation for heating and lighting. -4- Mr. John Sawhill stated that the President's program requires too much in a weakened economy. Does not favor price decontrol of old oil but a gradual abandonment of the two-tier price system to a single ceiling price for all oil and let the old oil price rise 10 percent a year to the ceiling. A copy of the list of witnesses appearing before the Dingell Subcommittee is attached. The Dingell Subcommittee now plans to begin hearings and mark-up of Title XIII, "Standby Energy Authorities" of the President's program on March 3rd. Dingell will use his own bill H.R. 2991 as the mark- up bill. Attachment PRESS RELEASE FROM THE OFFICE IMMEDIATE RELEASE OF CONGRESSMAN JOHN D. DINGELL, D-MICHIGAN, 16TH DISTRICT FRIDAY, FEBRUARY 14, 1975 WITNESS LIST SELECTED FOR DINGELL ENERGY AND POWER HEARINGS Congressman John D. Dingell, D-Michigan, Chairman of the House Energy and Power Subcommittee of the Interstate and Foreign Commerce Committee today announced the witness and panel list for hearings in the Subcommittee, February 17-21. The new Subcommittee is taking testimony on President Ford's energy messages to Congress and the pressing energy problems facing the Nation and affecting all sectors of the economy. Witnesses include representatives of energy producing and consuming industries, the Federal Government, consumer groups, and State and local governments. "The Subcommittee, in these initial morning and afternoon hearings, is seeking a complete overview of the energy supply, distribution and user demand problems," stated Chairman Dingell. He added, "Following the week of overview on energy matters, the Subcommittee will make determinations as to which specific energy proposals, legislation, alternatives and recommendations will receive our attention first." The witnesss list is attached. (MORE) WITNESS LIST HEARINGS ON PRESIDENTIAL ENERGY PROGRAM Monday, February 17 - Room 2123 Rayburn House Office Building 10 a.m. Administration Witnesses: Honorable William E. Simon, Secretary, Department of the Treasury (tentative) accompanied by -- Honorable Ed Fiedler, Assistant Secretary for Economic Policy Honorable Frank Zarb, Administrator, Federal Energy Administration Honorable Thomas Enders, Assistant Secretary for Economic Affairs, Department of State Honorable Alan Greenspan, Chairman, Council of Economic Advisors Tuesday, February 18 - Room 2123 Rayburn House Office Building 2 p.m. Panel of Economists: George L. Perry, Senior Fellow, Brookings Institution Charles R. Owens, Charles Owens and Associates M. A. Adelman, Massachusetts Institute of Technology Thursday, February 20 - Room 2123 Rayburn House Office Building 10 a.m. Auto Industry Panel: Chrysler, Ford, General Motors, American Motors United Auto Workers - Duane (Pat) Greathouse, Vice President Utilities Panel: Thomas J. Galligan, Jr., Boston Edison Company W. Donham Crawford, President, Edison Electric Institute Alex Radin, American Public Power Association Ben Fuqua, Florida Power and Light Company 2 p.m. Energy Producers Panel: Frank Ikard, President, American Petroleum Institute Bud Lawrence, Vice President, American Gas Association Carl Bagge, President, National Coal Association C. John Miller, President, Independent Petroleum Association of America Walter Rogers, President, Interstate Natural Gas Association of America Industrial Consumers Panel: National Association of Manufacturers - witnesses to be announced Milton Stewart, National Small Business Association - 2 - Friday, February 21 - Room 2123 Rayburn House Office Building 10 a.m. State Government Panel: Honorable Thomas P. Salmon, Governor of the State of Vermont and Chairman, National Governors Conference Committee on Natural Resources and Environmental Management Honorable Dolph Briscoe, Governor of the State of Texas Local Government Panel: Conference of Mayors - - witnesses to be announced League of Cities - witnesses to be announced National Association of Counties witnesses to be announced Consumers Panel: Garry DeLoss Lee White, Consumer Federation of America Cary DeLose, Public Interest Research Center Group Witness to be announced . Farm Bureau Jim Cubie, Congress Watch 2 p.m. Transportation Industry Panel: Paul Ignatius, Air Transport Association Carl Lyon, American Association of Railroads Charles Webb, National Association of Motor Bus Operators William A. Bresnahan, American Trucking Association John Creedy, Water Transport Association Bill Stokes, American Public Transit Association Petrochemical Users Panel: Witnesses to be announced Panel on Policy Alternatives: Honorable John Sawhill, Former Administrator, Federal Energy Administration Honorable Peter Peterson, Chairman of the Board, Lehman Brothers, Former Secretary of Commerce March 4, 1975 Dear Mr. Scheuer: Here as requested is & copy of the slide presentation that the President delivered this morning for the Democratic freshmen. It was nice visiting with you there and I hope the meeting was deemed mutually beneficial. With kind personal regards, I am Sincerely yours, Vernon C. Loes Deputy Assistant to the President Heborable James Schouer House of Representatives Washington, D.C. 20515 VCL:vh dlvd. messenger FORD is LIBRARY 074838 CRITERIA FOR THE ENERGY PROGRAM 1. CONSERVATION 2. DEVELOPMENT OF NEW SOURCES OF ENERGY 3. NATIONAL SECURITY 4. EQUITABLE APPLICATION OF PROGRAM ON A NATIONWIDE BASIS WHY AN ENERGY CRISIS? 1. INCREASED CONSUMPTION 2. DEPLETION OF RESOURCES 3. INCREASED IMPORTS 4. LOSS OF U.S. SURPLUS IN LATE 60's 5. GROWTH OF A CARTEL RESULT: U.S. LOST CAPACITY TO SET WORLD PRICE OF CRUDE. OIL DOLLAR OUTFLOW 1970 -- 3/1/2 BILLION 1974 -- 25 BILLION 1977 -- 32 BILLION PRESENT U.S. DEPENDENCE FOREIGN OIL -- -- 38% PETROLEUM TRENDS 20 15 DOMESTIC CONSUMPTION MMB/D 10 DOMESTIC PRODUCTION 5 1950 1955 1960 1965 1970 1974 ENCOURAGE ENERGY CONSERVATION 1. IMPORT FEES (BY PRESIDENTIAL ORDER) 2. EXCISE TAX AND IMPORT FEE ON OIL (CONGRESSIONAL ACTION) 3. EXCISE TAX ON NATURAL GAS (37 CENTS PER THOUSAND CUBIC FEET 4. PUBLIC EDUCATION ENCOURAGE DOMESTIC ENERGY PRODUCTION 1. NEW NATURAL GAS DEREGULATION 2. CRUDE OIL PRICE DECONTROL 3. ELK HILLS NAVAL PETROLEUM 4. CONVERSION TO THE USE OF DOMESTIC COAL 5. ALASKA AND OFF-SHORE SOURCES RETURN OF $30 BILLION 1. $ 16.5 BILLION INDIVIDUAL TAX CUTS 2. $2 BILLION TO NON-TAXPAYERS ($80 PAYMENT) 3. $0.5 BILLION HOME INSULATION TAX CREDIT 4. $6 BILLION CORPORATE TAX CUT (DROP RATE 48% TO 42%) 5. $2 BILLION TO STATE AND LOCAL GOVERNMENT 6. $3 BILLION FEDERAL COST OFFSET TOTAL: $30 BILLION RATIONING 1. FIVE TO TEN YEAR PROGRAM 2. 30% LESS GAS FOR INDIVIDUALS (9 GALLONS PER LICENSED DRIVER A WEEK) 3. 10% LESS FOR BUSINESS 4. BUREAUCRATIC AND COSTLY 5. NO DEVELOPMENT OF NEW SOURCES YOUN DISBALL TEES: 10TH DISTRICT, MICHIGAN INTERSTATE AND FOREIGN COMMERCE WASHINGTON OFFICE: CHAIRMAN, SUBCOMMITTEE ON ROOM 2210, RAYBURN HOUSE OFFICE BLDG. WASHINGTON, D.C. 20515 Congress of the United States ENERGY AND POWER SMALL BUSINESS DISTRICT OFFICE: CHAIRMAN, SUBCOMMITTEE ON 4917 SCHAEFER ROAD house of Representatives ENERGY AND ENVIRONMENT MERCHANT MARINE AND FISHERIES DEARBORN, MICHIGAN 48126 Washington, D.C. 20515 MIGRATORY BIRD CONSERVATION COMMISSION March 5, 1975 IN BODY HEARINGS BEFORE THE SUBCOMMITTEE ON ENERGY AND POWER HONORABLE JOHN D. DINGELL Mr. Speaker, in February the President's omnibus energy bill-- the Energy Independence Act of 1975, was assigned to Committee. Nine of the thirteen separate titles of this comprehensive package were assigned to the Committee on Interstate and Foreign Commerce. In this Congress our Committee has formed a new Subcommittee on Energy and Power in order to give focus to our decisionmaking responsibil- ities on energy policy matters. As Chairman of that Subcommittee, I want to take this opportunity to assure my colleagues in the House that I will commit my full capacities to move expeditiously and bring legislative recommendations to this Floor in the very near future. To gain an understanding of the dimensions of our energy diffi- culties and to give focus to our deliberations, the Subcommittee during the week of February 17 held hearings on the President's energy proposals. Our task was to identify the underlying goals of the program, to evaluate the means selected to accomplish these goals, and to take the economic measure of the policies to which this Congress has been asked to accede. These matters were explored in thirty hours of intense review of the Pres. ident's program concentrated in four days of hearings. THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS -2- We discovered in these proceedings that great controversy attends the energy policy decisions made by the President. But perhaps the most dominant point made by all witnesses is that energy policy is inextricably linked with economic policy. Decisions in one area hold considerable im- plications for the other. The development of a rational, cohesive energy policy, therefore, must necessarily be linked to tax policy and strategems for pulling this nation out of its recessionary spiral. In recognition of this interrelationship, my good finend and colleague, Chairman Ullman of the Ways and Means Committee, and I propose to commit our Committees to a parallel course of action for the purpose of developing a cohesive and comprehensive energy program. For my part, I intend to once again convene the Subcommittee on Energy and Power beginning the week of March 10 for a series of concentrated hearings to stretch over a two-week period. The Committee will invite testimony from a number of balanced panels on the subject of Federal and state allocation and price regulation of natural gas, coal, and petroleum and its products. We will also examine various proposals to equip the President and other agencies of the Federal government with emergency powers. Our purpose will be to draft legislation which responds to our most pressing and immediate needs. Although the focus of this legislation will be in the near term, it will necessarily provide the dimension for future long range energy policy decisionmaking. Toward that end, I also intend to convene the Energy and Power Subcommittee beginning the week of March 24 for the purpose of defining the policy parameters of legislation to be drafted by the staff during the -3- Easter Recess. In giving legislative form to the Subcommittee's policy decisions, committee counsel will be instructed to work with the staff of the Ways and Means Committee to assure to the maximum extent practicable consistency with the tax policy decisions of that Committee. It will be our purpose to bring legislation to the Floor by mid or late April to be combined with the legislative recommendations of the Ways and Means Com- mittee into a comprehensive energy package. The Subcommittee at the earliest opportunity thereafter will begin consideration of proposals related to the price regulation of elec- tric utilities and siting of energy facilities--Titles VII and VIII of the Administration's bill and related proposals. These hearings are tentatively schedules to commence the week of April 28. Let me make the record clear on another matter. Although the Energy and Power Subcommittee will invite testimony on the subject of price regulation of natural gas, I am not committed to an effort to bring legislation to the Floor addressing the subject of natural gas price deregulation. As my colleagues know, this is a matter of great controversy and one I have for some time opposed. I will not burden this record with my reasons for doing so in the past, but I believe them to be cogent and still applicable. I want to emphasize I have held many discussions with Chairman Ullman of the Committee on Ways and Means. It is our intention to work closely together as our two committees draft legislation within respective jurisdictions on the subject of energy. -0-