Comments on H.R. 6831, 'The National Energy Act'

EMD-77-45: Published: Jun 8, 1977. Publicly Released: Jun 8, 1977.

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Comments on two sections of the proposed "National Energy Act" (H.R. 6831) dealing with national energy goals and Federal vanpooling were requested.

Based on the Administration's own estimates, with few exceptions, the plan will fall short of its goals, even if fully implemented. The conservation provision of the plan will not much reduce energy demand, nor significantly stimulate domestic energy production. The most significant items in terms of energy impact are the oil and gas pricing actions and the oil and gas users' tax. The effect of the pricing provision would be to transfer a large amount of oil use to natural gas, and the users' tax would shift large amounts of industrial oil and gas use to coal. Natural gas would be shifted from industry to residential/commercial use. The largest impact will be the residential conservation tax credit coupled with the utility insulation service program. Voluntary actions in the residential sector will be hard to achieve and sustain. Vanpooling seems to be desirable, but could be more effective if extended beyond Federal vehicles to the private sector.

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    Priority Open Recommendations:

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