minority businesses with information to assist in their planning efforts to assess business potential in specific new energy technologies. In management and technical assistance: • The minority educational institution assistance direct support will continue to provide for a core cadre to start up operations of science and technology research and development centers. These centers will provide an administrative infrastructure vital to moving the minority institutions into a fully competitive posture. General technical support and research travel support will be provided to nonresearch-oriented minority institutions. Activities to enhance private sector interac tion will continue. • Focused technical assistance will continue to be provided to minority businesses. Outreach activity and data collection will be the basis for providing advice to the Secretary. Assistance will be furnished to DOE officials on ways to increase minority business enterprise participation. In fiscal year 1986, some of the planned accomplishments include the following: SOCIO-ECONOMIC RESEARCH AND POLICY ASSESSMENTS • To augment the data bank development, some limited regional-based information will be added from other sources of data information in order to (1) improve the quality of the data, (2) update the socio-economic and energy use patterns information, and (3) to facilitate relevant forecasting of residential and transportation energy demand for appropriate impact assessments. • The methodology of the Minority Energy Assessment Model [MEAM] will be modified to reflect compatibility with end-use characteristics and regional-based data. • Specific socio-economic and energy-use information will be developed from the data bank and provided to the policy office and to relevant program offices so that in-depth analysis at a more micro level can be facilitated by the availability of data and other comparative information, specific minority categories at the regional level. • A technical information document and regional market penetration information designed to assist minority businesses to identify and define economic opportunities and financial options in various segments of the energy industry will be developed and disseminated. MANAGEMENT AND TECHNICAL ASSISTANCE Support the establishment of energy research centers at minority institutions. • Develop and support innovations in private sector partnerships with minority educational institutions. Continue to advise the Secretary, through the Minority Economic Development Program, about the impact of energy activity on minority business enterprises [MBE's], and develop ways to assure MBE's are afforded an opportunity to participate fully in the energy programs of DOE. This program makes a concerted effort to seek out, encourage, and provide technical assistance to small and large disadvantaged businesses, and it assists departmental officials in increasing the participation of disadvantaged businesses in DOE activities. FINANCIAL ASSISTANCE PROGRAM • Will evaluate recommendations arising from the program evaluation study of the loan program conducted during fiscal year 1985. • Will commence to implement the relevant recommendations contained in the aforementioned study. • Will continue to provide loans and possibly other financial assistance to minority business enterprises. MINORITY FINANCIAL INSTITUTIONS DEVELOPMENT PROGRAM • Will continue to administer the Minority Financial Institutions Development Program, implementing the approved increase in deposit levels in minority banks from $400,000 to $500,000 per bank. Will seek approval to increase deposit levels in minority thrift institutions from $200,000 to $500,000 per institution. • Approximately $60 million in consent order funds will be on deposit in 160 minority financial institutions. This effort will continue to be funded from DOE's petroleum violation escrow account, and not with MI appropriated funds. • Will continue to provide for administrative support for the Minority Financial Institutions Development Program. Mr. Chairman, this concludes my remarks. I would be happy to answer any questions which you or the members of your subcommittee might have concerning the programs of the Office of Minority Economic Impact. BIOGRAPHICAL SKETCH OF GERALDINE P. FLOWERS Geraldine P. Flowers was designated Deputy Director, Office of Minority Economic Impact, U.S. Department of Energy (DOE), in January 1986. In this position, she is responsible for advising the Secretary of Energy on the effect of energy policies, regulations, and programs on minorities and minority business enterprises. Ms. Flowers has served as Director, Personnel Policies and Programs Division, Office of Personnel, DOE, since 1978. She is responsible for providing technical and administrative direction to the staff of the Division in establishing personnel management policies and programs for the Department. Ms. Flowers' previous work experience includes: Chief, Employee Programs, Atomic Energy Commission and Energy Research and Development Administration, from 1973 to 1978; personnel officer, Federal Railroad Administration, Department of Transportation, from 1972 to 1973; personnel officer, Cost of Living Council in 1972: position classification specialist and personnel management specialist, Department of Transportation, from 1969 to 1972: and personnel specialist, U.S. Information Agency. Ms. Flowers is a charter member of the Senior Executive Service. She received the DOE Energy Exceptional Service Award in 1986; she also received SES performance award bonuses for accomplishments in 1981 and 1984; in 1976 she received a special achievement award for equal employment opportunity; and in 1974 she was a William A. Jump Award nominee. STATEMENT OF THEODORE J. GARRISH, ASSISTANT SECRETARY, CONGRESSIONAL, Mr. Chairman and members of the subcommittee, I appreciate this opportunity to discuss the fiscal year 1987 budget request for the Office of Congressional, Intergovernmental and Public Affairs. As in the past fiscal year, the responsibilities of this Office remain as multifaceted as they are demanding. Among the principal mandates and concerns of this Office are the management and coordination responsibilities in keeping the Congress fully and currently informed of departmental activities. In addition, we are responsible for relations with a variety of energy-interested constituencies-and communications with the publicat-large. These constituencies include the news media; State, territorial, tribal, and local government officials; other Federal agencies; consumer, citizen, labor, and business organizations; nonprofit education organizations, and other energy-oriented groups. This Office is also responsible for fostering and promoting competition in the energy industry. Finally, it serves in a support and advisory role for other DOE components and in efforts to work toward the implementation of national energy policy goals. FISCAL YEAR 1987 BUDGET REQUEST While the responsibilities of the Office of Congressional, Intergovernmental and Public Affairs remain unchanged, the budget request for fiscal year 1987 is $4,915,000, a decrease of $201,000 from fiscal year 1986. This savings is achieved through reduced contractual support. Our fiscal year 1987 budget request calls for $4,409,000 for program direction, a funding level sufficient to maintain 88 FTE's, the same level as fiscal year 1986. This amount is necessary to maintain staffing levels that will enable us to carry out the Office's wide range of responsibilities. A total of $506,000 is requested for program support. These funds are needed for support in the press services area, for the evaluation of audiovisual products and publications, and for the dissemination of consumer energy information through radio spots and bimonthly news columns. Funding is also requested for contractor analysis of energy competition issues and to assist in development of Indian energy resources. Mr. Chairman, inasmuch as this subcommittee has requested that this testimony include a discussion of fiscal year 1986 activities and accomplishments, I would like to touch briefly on our ongoing projects for the remainder of this fiscal year. I believe you will find that they justify our fiscal year 1987 budget request and mirror the fact that this Office is an integral part of the Department of Energy-and an important conduit for the Department in implementing the National Energy Policy Plan (NEPP]. FISCAL YEAR 1986 ACTIVITIES During the remainder of the fiscal year, this Office's activities will be focused on: Coordination of departmental efforts related to the consideration and passage of new and revised legislation in areas such as Superfund reauthorization, acid rain/clean air concerns, nuclear licensing reform, Price-Anderson reauthorization, energy defederalization, and energy tax incentives. • Continued efforts to maintain effective communication with the public in order to provide information on energy policy and programs. • Participation in the development and implementation of energy programs, specifically nuclear waste management and emergency preparedness, with a special emphasis on outreach to State and local governments—and related constituencies. Other ongoing coordination of DOE activities in other areas with State and local governments as well as business, labor, and industry, and education and consumeroriented organizations. • Promotion of the development of Indian energy resources through an interagency contract managed by DOE with the Council of Energy Resource Tribes. Mr. Chairman, I believe the record of service, accomplishment, and advocacy provided by the Office of Congressional, Intergovernmental and Public Affairs during the past fiscal year fully substantiates its fiscal year 1987 budget request. The following table summarizes the fiscal year 1986 funding level and the fiscal year 1987 request: Let me close by saying that it has been a great privilege and pleasure to work with the Congress during this past year. I look forward to a continuing and productive relationship. STATEMENT OF GEORGE J. BRADLEY, JR., ACTING ASSISTANT SECRETARY FOR INTERNATIONAL AFFAIRS AND ENERGY EMERGENCIES, DEPARTMENT OF ENERGY Mr. Chairman, Members of the Subcommittee: It is a pleasure to present testimony before this Subcommittee on the FY 1987 budget request for the Office of International Affairs and Energy Emergencies. I shall be discussing only that portion of our request which supports the Office of International Affairs, and the Policy and Management, IE line item, which includes my immediate office and my Management Services administrative support staff. PROGRAM AUTHORIZATION GOALS Reliance on the market is the cornerstone of our National Energy Policy Plan (NEPP-IV), which President Reagan submitted to the Congress in October 1983. The goal of that plan is an adequate supply of energy at reasonable costs. Let me reiterate our strategies for achieving that goal. First, we seek to minimize Federal Government intervention in the energy markets, recognizing our responsibility for health, safety and environmental matters. Our second strategy is to promote a balanced and mixed energy system. strategies provide the framework in which we have developed our international policies. Together, the goal and The overall policy role for International Affairs is established by the Department of Energy Organization Act of 1977 (P.L. 95-91). This Act requires the Department to develop and implement international energy policy consistent with domestic energy and U.S. foreign policy and to provide independent technical advice to the President on international energy-related matters. In accordance with the National Energy Policy Plan, our program is focussing on the international dimensions of energy supply, energy security, and emergency preparedness. Our primary international energy goals are to reinforce the international nuclear nonproliferation regime; to advise on policies to remove impediments that hinder international energy trade markets; to improve U.S. accessibility in world energy markets, primarily nuclear, coal, oil and gas; to help shape policies that reduce U.S. vulnerability to energy supply disruptions; and to encourage and facilitate increased international collaboration in energy research and development (R&D) to increase the efficiency and productivity of the R&D investment in the technology options available for long-term energy security. A major initiative related to reinforcing our energy security is the Department's initiative in enhanced collaboration in international research and development. In an era of declining financial support for energy R&D, enhanced collaboration offers an opportunity to maintain momentum of priority research activities. It emphasizes early consultation at the planning and project development stage of high priority energy R&D programs, which helps facilitate substantive collaboration. It also promises improved economic efficiency and an accelerated pace of technological development over and above that which would otherwise be achieved. The Office of International Affairs (IA) has a unique role in developing the policy and strategy for enhanced collaboration as well as negotiating with senior foreign energy policy officials on the political scope of such new arrangements. This role is significantly different from the technical discussions with foreign partners undertaken at the programmatic level. An internal task force on international R&D collaboration comprised entirely of technical program office personnel clarified the roles and responsibilities between IA and the |