Statement of Administration Policy: S. 324 - National Energy Policy Act of 1990

(Senate)
(Wirth (D) Colorado and 30 others)

The Administration supports the intent of S. 324 to develop a National Energy Strategy (NES) that enhances environmental quality consistent with achieving economic and security objectives. The Administration is currently developing such a strategy. The Administration, however, cannot support S. 324 unless amended to delete certain prescriptive requirements described below.

The Administration opposes the requirement that future National Energy Plans include a strategy for achieving specific targets and timetables for the reduction in carbon dioxide emissions. Any legislated targets or timetables would be ill-advised given the large uncertainties regarding the scale, timing, and impacts of climate change, and the serious economic consequences of such actions. Further, requirements for unilateral United States action on carbon dioxide alone would have little or no effect on climate change, and would undermine our efforts to negotiate an International Framework Convention on Global Climate Change. Objectives and strategies to respond to potential climate change should be developed aftejr an international consensus is reached. This consensus should be based on consideration of the socioeconomic and environmental impacts of climate change, the socioeconomic effects of the mitigation strategies, and the effectiveness of such strategies in reducing adverse climatic impacts. Strategies must address both sources and sinks of all greenhouse gases, and should include mitigation and adaptation measures, rather than narrowly targeting energy-related carbon dioxide emissions. Initially, such strategies should focus on actions which are fully justified for reasons other than climate change.

The Administration opposes the establishment of new financial incentives, including loan guarantees, to commercialize and export renewable energy a^d energy efficiency resource technologies. In addition, while the administration supports research and development activities on a wide range of energy technologies, it opposes the numerous targets, schedules, authorization levels, and prescriptive planning and management requirements contained in S. 324.

The Administration opposes provisions in S. 324 that would require the Federal Government to provide subsidies for the demonstration and commercialization of new energy technologies. These requirements may not be technically achievable, could cost at least several hundred million dollars annually, and are too rigid to permit priority setting. The specific technical objectives for energy research and development; programs, and program priorities, can be addressed in a more comprehensive and flexible framework in the Administration's N;ES ^report to Congress next year and in future updates of the NES.