Draft Amendment, Public Law 93-410, Geothermal Energy Research, Development and Demonstration Act of 1974; submitted by Dr. Eric H. Listing of Federal Loan Guaranty Programs Designed to Accelerate Com- mercialization of New Technologies in the Energy Field; provided by D. B. Barian, American Law Division, the Library of Congress, Congres- GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT AND DEMONSTRATION ACT OF 1974 OVERSIGHT HEARINGS-LOAN GUARANTIES WEDNESDAY, OCTOBER 1, 1975 HOUSE OF REPRESENTATIVES, COMMITTEE ON SCIENCE AND TECHNOLOGY, DEVELOPMENT AND DEMONSTRATION Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m., in room 2322, Rayburn House Office Building, Hon. Mike McCormack, chairman of the subcommittee, presiding. Mr. McCORMACK. The meeting will come to order. This morning, the Subcommittee on Energy Research, Development, and Demonstration begins 2 days of hearings on the geothermal loan guaranty program. During the 93d Congress, Public Law 93-410, the Geothermal Energy Research, Development, and Demonstration Act of 1974, was enacted. Originating in the Senate Interior Committee and the House Committee on Science and Astronautics, this legislation established a loan guaranty program to encourage and assist in the research, development, demonstration, and commercial development of geothermal resources. As enacted, this legislation specified that the chairman of the Geothermal Energy Coordination and Management project designate an appropriate Federal agency to guarantee loans for this purpose. With the creation of the Energy Research and Development Administration on January 19 of this year, this responsibility was assumed by the Administrator of ERDA. The loan guaranty provision of Public Law 93-410 is unique. It is the only law currently in force that is designed specifically to accelerate commercialization of new technologies in the energy field through the provision of federally guaranteed loans. The reasons for holding these hearings this morning are twofold. First, the ERDA, in cooperation with a number of other Federal agencies, has just about completed a set of proposed regulations for implementing the geothermal loan guarantee program. These proposed regulations have been circulated to all members of the subcommittee for their prior study, and I am certain they will have many relevant questions for our witnesses this morning. The second reason for scheduling these hearings at this particular time is the fact that the ERDA authorization bill, H.R. 3474, is presently in conference. The Senate added an amendment to that bill, section 103, which provides for a $6 billion loan guarantee program. The Senate language includes geothermal energy resources, and, therefore, overlaps the provisions of Public Law 93-410. I feel that it is appropriate to review the geothermal loan guarantee legislation and regulations since at least parts might be useful as a model for the larger multiresource loan guarantee program approved by the Senate. We will be looking not only at the regulations proposed by the ERDA, but also at the underlying legislative framework. We recognize the fact that in breaking this new legislative ground last year, we may very well have overlooked some specific needs. Therefore, we have the responsibility at this time to give careful consideration to potential amendments to the Public Law 93-410 loan guarantee provisions, in the context of the present conference with the Senate on its broader loan guarantee program. Much of the credit for the geothermal loan guarantee program belongs with the leadership of the Senate Interior Committee. Its chairman, the Honorable Henry Jackson of Washington, could not be here in person this morning, but he will be submitting a written statement for the hearing record. We are pleased to have with us as our first witness this morning the Honorable Paul Fannin, Senator from the State of Arizona. Not only was Senator Fannin active in developing the loan guarantee provisions in Public Law 93-410, but he also added language covering geothermal and other renewable resources to section 103 of the ERDA authorization bill that we have in conference. Senator Fannin, we welcome you this morning and look forward to receiving your advice and recommendations on this important subject. I recognize that you have serious time constraints and we will do all that is necessary to make sure that you meet your other appointments this morning. STATEMENT OF HON. PAUL J. FANNIN, U.S. SENATE Senator FANNIN. Thank you, Mr. Chairman, and the gentleman from West Virginia. It's certainly a pleasure to have this privilege of being with you here this morning, and other members of the committee. It is my pleasure to speak with you this morning on the subject of Government loan guarantees for the construction and operation of commercial facilities utilizing renewable energy resources and converting coal and oil shale into synthetic fuels. May I commend you, Mr. Chairman, and Chairman Teague and the other members of this committee for their interest in fully exploring this program's potential by scheduling this series of hearings. I am sure that significant and convincing testimony will be collected in this effort which will be of particular benefit to those of us who are members of the conference committee on H.R. 3474, the ERDA budget authorizations. As a coauthor of this program, may I express not just support but my commitment to the philosophy behind Government guarantees to private energy development? This share-the-load approach insures private sector involvement in emerging industries and technologies |