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In addition to that, I would like to bring your attention to the fact that liquified natural gas has a great deal of potential as a fuel for diesel engines. We are engaged in some research and development at the moment that shows great promise in terms of using liquified natural gas, and it applies particularly to the barge users of fuel, particularly fishing trawlers and mining operations where you have concentrated use and you do not have to put in the infrastructure-the barge infrastructure for the distribution of the liquefied natural gas.

On our projections we are looking at a cost equivalent for liquefied natural gas for diesel purposes of the equivalent to about 40 cents a gallon for fuel. In the fishing trawler industry in the gulf coastal region, that amounts to about a $40,000 a year savings for a fishing trawler or shrimper trawler of 65 feet, which could be the salvation of the shrimping industry in the South and in the gulf coast region.

Senator EVANS. Can you use that liquefied natural gas in current diesel engines without modification?

Dr. HOLLAND. There is some modification that is required. The modification is fairly straightforward. We are currently building a fishing trawler using Caterpillar diesel engines to test this concept out and get a better handle on what the maintenance and service requirements might be for the operating practice. We think there is a large savings in terms of engine life because of the cleaner burning fuel.

Senator EVANS. Thank you very much. All of this has been a very interesting afternoon and a particularly interesting program from this panel.

We have lots ahead of us, and I sometimes wonder why we cheat on the research side and then wonder what we do when we are short with a whole lot greater expense. It does not seem to be a very hot set of priorities we have gotten ourself into. We will see what we can do about it.

Thank you very much.

[Whereupon, at 5 p.m., the hearing was adjourned, subject to the call of the Chair.]

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On March 17, 1986, Assistant Secretary Donna R. Fitzpatrick appeared before the Energy and Natural Resources Subcommittee on Energy Research and Development to discuss the FY 1987 budget authorization request for Conservation and Renewable Energy Programs.

Following that hearing, you submitted written questions for our response to supplement the record. Enclosed are the answers to those questions, which also have been sent directly to the Committee staff.

If you have any questions, please have your staff call
Ingrid Nelson or Cathy Hamilton on 252-4277.
happy to assist.

Sincerely,

2. kl

Robert G. Rabben

They will be

Assistant General Counsel
for Legislation

Enclosure

(225)

POST-HEARING QUESTIONS AND ANSWERS

RELATING TO THE MARCH 17, 1986 HEARING

BEFORE THE

SUBCOMMITTEE ON ENERGY RESEARCH AND DEVELOPMENT

COMMITTEE ON ENERGY AND NATURAL RESOURCES

UNITED STATES SENATE

Question 1:

Answer:

QUESTIONS FROM SENATOR DOMENICI

BUILDINGS AND COMMUNITY SYSTEMS TECHNOLOGY TRANSFER

DOE will investigate cooperative R&D ventures with private industry consortia in order to foster increased technology transfer. Yet in Buildings and Community Systems, Analysis and Technology Transfer subprogram budget request, DOE is requesting $1 million, down from $2.6 million in FY 86. It seems the technology transfer in the energy efficiency area would have immediate return on energy conservation. Would you elaborate on DOE's justification in pushing for technology transfer and yet reducing the funding for such activities?

DOE believes that technology transfer is very important. The
advantage of doing it through the cooperative R&D ventures
with private industry consortia is that the Federal funds for
research are leveraged by an equal or greater amount from the
private sector. Technology transfer is more certain with
the ventures because the private sector partners have a
vested financial interest in the results.

The reduction in the referenced technology transfer line item
resulted from two factors: 1) technology transfer activities
are gradually (as new work begins, contracts are renewed,
etc.) being incorporated more directly into the research
projects; 2) the more generic technology transfer activities,
such as those funded under the referenced line item, will be
funded at levels commensurate with overall R&D funding and
consistent with the relative priority of the activities.

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