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Policy Analysis

Question: Provide a list of all policy and system studies to be performed under contract in FY 84 and FY 85 with funding levels.

Answer: Policy and system studies to be performed under contract in FY 1984 are as follows:

Natural Gas - A continuation of the 2-market model of the domestic natural gas market for analytical studies in legislative proposals; analyses of fuel consumption in the industrial sector, review of industrial fuel use and gas demand behavior; and detailed analysis of downstream efficiency and reform of regulations - $400,000;

Oil - Studies in recent structural changes in the
world oil market; develop new refinery model for
Contingency Planning Model (CPM) and estimate
trends in new refinery capacity investments on
West Coast - $160,000;

Energy Security - Studies concerning short-term
economic effects of disruption and effects of IEA
Sharing agreement on world oil prices;
continuation of analysis of incentives for
countries to drawdown or hold on to petroleum
stockpiles during early stages of a disruption -
$240,000;

Projections/Energy Models - General projections support and energy models relating to disruptions, energy demand and utility projections - $400,000;

Electricity - Comprehensive review of Canadian
electricity imports; studies on power pooling;
evaluation of utility conservation programs and
analysis of trends in load factors and management
programs - $400,000;

Coal - Analysis of the coal leasing program;
economic analysis of coal transportation; and
export coal competition assessment - $450,000;

Tax and Finance - Analysis of comprehensive tax reform proposals and effect of federal taxation on new electric generating capacity - $ 200,000; .

Nuclear Energy and Energy Technology - Studies of
potential role of smaller, modular nuclear
reactors; energy technology industry studies;
assessment of federal/private roles in energy
technology; and assessment of industry's views of
R&D needs - $500,000;

..

Regulation and Information - Review CAFE
standards; analysis of appliance information, auto
misfueling and costs of environmental compliance
- $150,000;

Energy Sector - Analysis of energy aspects of industrial policy, concumser response to price and economic incentives and changing fuel demand in industrial and residential sectors - $150,000;

Macroeconomic and Energy Issues - Analysis of
trends in energy use, economic efficiency of
alternatives for meeting future energy demand and
studies Supporting the National Energy Policy
Plan - $300,000; and

Strategic Planning - Studies supporting strategic program planning and modification of environmental models - $150,000.

For FY 1985 the Office of Policy, Planning and Analysis (PPA) will be reviewing staff work plans for contract funds in the near future. It is, however, anticipated that the levels of funding and the analyses and studies by contractors will continue in the manner indicated above for FY 1984. The increase of $1,000,000 in policy studies from FY 1984 will provide for additional work needed in the area of Canadian electricity imports, new studies in the areas of emergency preparedness, the environment, coal development and synfuels.

Question: Provide a more detailed explanation for all additional studies to be initiated in FY 85 with the $1 million funding increase.

Answer: The Office of Policy, Planning and Analysis will begin staff work plans for FY 1985 in the near future. The studies and additional funds needed for FY 1985 are as follows:

Electricity - More contract funds will be delegated to the comprehensive analytical effort in the area of Canadian electricity imports and economic evaluation of expanded electricity wheeling, issues which we believe will receive Congressional attention - $ 200,000;

Natural Gas and oil - Update the domestic oil
and gas supply models, review economics of
drilling in mature U.S. oil and gas basins,
analyze effects and use results to update supply
models; study on government's response to panic in
supply disruption; and estimate market power of
major interstate pipelines - $200,000; and

Emergency Preparedness - Expanded studies in the area emergency preparedness which will be required in response to legislative issues - $ 200,000;

National Energy Policy Plan - Analysis of energy use and future energy demand and studies to support the fifth National Energy Policy Plan $300,000.

Any remaining funds would be held for studies and analyses required for requests from the Congress or the President which have not yet been identified on the legislative calendar for FY 1985.

Congressional, Intergovernmental and Public Affairs

Question: Please explain your efforts over the last four years to reduce the Congressional, Intergovernmental and Public Affairs budget and staff. Provide a detailed breakdown, particularly of the program direction portion.

Answer: During the last four years, I have made a concerted effort to streamline the programs and management of the Office of Congressional, Intergovernmental and Public Affairs (CP). In the last Administration, there were over 350 employees in the six offices which are now CP. Since FY 1980, I have cut staffing 44 percent, from 233 to a current level of 130 full-time equivalent staff years. Based on a major reorganization, I was able to cut unnecessary functions and through better utilization of staff resources still have the capability to perform those activities that are mandated by legislation.

For example, in the prior Administration, there was only a minimal communication management program in the Department. Spending had skyrocketed on exhibits, films, and public relations campaigns which, in many cases, did not reflect a focused, balanced energy program. Through more careful and focused planning, we have developed a workable management control system which is in keeping with President Reagan's efforts on waste and inefficiency in publishing and audiovisual programs. Agencywide we have cut $11 million in unnecessary DOE films and exhibits and saved approximately $3 million on unnecessary or duplicative publications. In the Public Affairs area, we have moved from an office that developed and published energy information to a policy-oriented office which now reviews proposed publications and audiovisual activities to ensure that they reflect a balanced energy program and do not duplicate publications/audiovisuals already available.

While I have made a significant reduction in funding and staff in the Office of Consumer Affairs, we are continuing to build partnerships with organizations that work for constructive and creative solutions to the Nation's energy needs. I think you will agree that it is the Department's responsibility to promote a balanced energy policy, and I am proud to say that I have instituted such a public program. Additionally, staffing has been reduced in Intergovernmental Affairs and Competition; yet we have continued to carryout the most essential activities.

Issues relating to the Department of Energy continue to be of great interest to the Congress. In our Congressional Affairs area, we have no fewer than 27 committees, 53 subcommittees, plus House and Senate Appropriations Committees, that have some jurisdiction over the Department. We have maintained an excellent staff to continue to support the needs of all Representatives and Senators as well as their staffs and to provide them with needed information in a timely and efficient manner.

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