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through advancement of underlying structural and aerodynamic theory; the resolution of environmental uncertainty attendant to combustion of municipal wastes; research in biological health effects and risks associated with exposure to high-voltage electric and magnetic fields; and the feasibility of using magma energy as a geothermal energy source for power generation.

The proposed fiscal year 1987 budget request for renewable energy programs totals $108 million.

Mr. Chairman, I believe that this budget will contribute to increased energy supply diversity and energy efficiency and will serve to promote increased competition in the marketplace.

This budget request maintains program goals and will allow us to address the items of highest priority in research and development in the field of renewable energy, thereby adding to the accomplishment of our national goal of fostering an adequate supply of energy at reasonable cost.

This is a budget which I believe recognizes today's fiscal responsibilities, as well as tomorrow's anticipated needs and will build on the foundation of energy stability and security that we, working together with the Congress, have laid in the last 5 years.

Mr. Chairman, we are pleased to have the advice we have received from the Congress and, in particular, this subcommittee, and we thank you for the opportunity to appear here today.

Chairman HATFIELD. Thank you for your fine statement. [The statement follows:]


Mr. Chairman and Members of the Subcommittee:

I appreciate the opportunity to appear before you today and discuss

the FY 1987 budget request concerning the Department's Renewable Energy and

Electric Energy Systems and Energy Storage programs. The budget for these

programs 18 consistent with the goals and objectives of national energy policy and 18 fully responsive to the Administration and Congressional goals of deficit reduction.

The Administration's overall energy goal 18 to foster an adequate supply of energy at reasonable cost. We can achieve that goal through the combination of energy stability, energy security, and energy strength. Energy stability has been achieved over the past five years. Our energy security 18 growing stronger day by day. Our objective for the immediate future is to build this Nation's energy strength, making full use of its vast natural resources and the daring and ingenuity of its citizens. Our approach

includes supporting advances in energy conservation as well as possible

energy supply sources of the future such as renewable energy.

Deficit reduction 18 perhaps the preeminent domestic economic imperative today and the Department fully recognizes that fact. For this reason, we are

doing all we can to concentrate increasingly scarce resources on those

programs and projects that directly fulfill a responsibility of the Federal

government and truly require Federal assistance. If we are to achieve our

overriding goal of deficit reduction we cannot afford to continue to allocate

scarce Pederal resources to activities where the rationale for continued

Federal lovolvement 18 weak and where State and local organizations or private industry can and should take over responsibilities presently bome by the Federal government. Also, we cannot permit programs or projects to continue with Federal support unless they meet a high priority national need. We have no choice under the current and

necessarily strict fiscal regimen but to

concentrate scarce resources where they show promise of bringing the greatest


As we seek ways to gain the greatest benefit from our limited resources,

we will investigate cooperative research and development ventures with

private industry consortia. This approach to R&D funding has the potential

to provide greater leverage of Federal funds and to assure that resources for

applied R&D are focused on high priority areas where there is private

commitment to follow through with promising technologies.

It can also foster

increased technology transfer by involving industry earlier in the R&D

sequence. One of our early steps will be the publication of a general

solicitation of industry interest in forming R&D ventures in the various

conservation and renewable energy program areas.

In order to contribute to the achievement of our goals, the FY 1987 budget request for Renewable Energy, Electric Energy Systems, and Energy Storage programs will continue to support development of a mix of technologies that can contribute to both energy supply and improved end-use

efficiency. The FY 1987 budget request for Renewable Energy R&D programs

under this subcommittee's jurisdiction totals $108.0 million; $16.2 million

for Electric Energy Systems and Energy Storage, $90.2 million for Renewable Energy programs and $1.5 million for general policy and management support.


The availability of stable and secure sources of energy will continue to play an important role in sustaining a robust domestic economy. The Department's

renewable energy programs reflect a continuing national commitment to

diversify U.S. sources of energy supply in a manner that fosters free market

choices. Renewable energy can be an important part of the nation's energy

supply mix and renewable technologies are already making important

contributions to national, regional, and local energy requirements. These

contributions are possible since the family of renewable energy technologies

spans a wide range of resource and technical options at varying stages of

maturity. Some technology and resource combinations have been providing

substantial energy for many years, others are just beginning to enter the supply systen, and some remain in research phases.

Renewable energy technical progress has been paralleled by an increasing level of confidence in and commitment to these technologies by the private

sector. The renewable industry has made significant progress in recent years

to its development into the diverse group of many small businesses and

sizable divisions of large companies that we see today. There has also been

progress with respect to the other institutions concerned with renewable

energy supply and use. States have become increasingly involved with

promoting renewable energy use, while universities, research lastitutes, and utilities are promoting awareness and conducting programs to further advance our knowledge of renewable energy potential.

Within the current Federal budget limitations, it is the Department's objective and role to participate in the highest priority research to address the most critical technology base issues. The focus of such efforts will be on those technologies with the greatest long-term promise for contribution to the nation's energy supply air. These efforts will emphasize precompetitive research critical to advancing technology while avoiding interference with the extraordinary capacity of industry to develop specific commercial products and services. The Department will continue to encourage private sector participation and leadership and will seek Input from industry and other institutions in the selection of projects which have the greatest relevance and potential.


Solar buildings technologies have continued to make inroads in housing and, to a lesser degree, in the commercial buildings sector. These technologies can presently supply up to 40% of the energy required to heat individual homes across the United States. There 18 Increasing scientific evidence that such energy contributions could be doubled and extended to additional types

ve building requirements for energy supply by means of continued opportunity

for technological innovations. The FY 1987 Solar Buildings Technology

Program budget request of $4.7 million for operating expenses will provide

industry with an essential technology base for developing the new materials,

components, and technologies required to realize this potential.

Working closely with industry and university laboratories, the Solar Buildings Program 1s conducting long-term, cross-cutting research which the

diverse sectors of the industry cannot support.

The goal of these research

activities 18 to increase the energy contribution of solar technologies to

the point where 70% to 80% of space heating, hot water, cooling, and lighting

requirements of various types of buildings could be supplied at costs that

are competitive with conventional fuels.

The FY 1987 program in materials and components includes continued research

on new optical and thermal switching films that control solar gain and

thermal losses for windows and exterior building surfaces. Research on

innovative collectors will increase their thermal efficiencies ana

reliability, decrease their cost, and expand the application of active solar

technologies to cooling systems and other building energy requirements.

New phase change materials incorporated in such conventional building materials as wallboards will make it possible to store and use thermal energy provided by solar energy in all parts of the building. Advanced thermal transport concepts will enable energy to be transferred from the point of collection at the building exterior to any interior location, thereby improving the energy performance of solar building systems.

Systems research activities encompass both residential and non-residential

building applications. Research on open cycle solar absorption and solar desiccant cooling technologies will be aimed at increasing their energy efficiencies, the key to achieving viable solar cooling applications. An important element of the FY 1987 systems research program is the development

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