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February 1976” of the Frank Zarb Papers at the Gerald R

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February 1976” of the Frank Zarb Papers at the Gerald R The original documents are located in Box 2, folder: “Memoranda to the President, February 1976” of the Frank Zarb Papers at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Frank Zarb donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. ' 1 ,\J·tt FEDERAI,. .E1'\ERGY ADMINISTRAT10N \\'/\SIIINC;TON. D .C. 20·1(,1 .,< February 2, 1976 OlTl CL OF TIll: AD:,!l"'ISTltATL)l ·~ MEHORAND UM POR THE PRESIDENT . /fI""J Ie 0fr (/,J--t . ~ . FROM: FHANK G. ZAH.B- ~ / (0.; . SUBJECT: Na t ural Gas LcgislQtior The House is scheduled to take up natural gas legislation tomorrow when the Dingell emergency bill comes to the [louse floor. As you know, we have a good chance of p a ssing the Krueger amendment to the Dingell bill if opponents of deregulation fail in their atte mpts to block the Krueger ame ndment from being considered. The situation in the House will be discussed at your meeting \·,;i t:h t.he leadership tonight at your 6: 00 p. m. meeting. I have attached talking points for YOll to use at the meeting and am prepared to discuss the natuLal gas situation with the leadership if you so desire. FEA is also preparing some ma terial to give to the leadership that coverS all elements of the gas situation -- current and proj e cted production, costs and benefits of deregulation, comparison of Krueger with Pearson-Bentsen, and so forth. Attachment Digitized from Box 2 of the Frank Zarb Papers at the Gerald R. Ford Presidential Library TALKING POINTS FOR CONGRESSIONAL LEADERSHIP MEETING NATURAL GAS· DEREGULATION I understand that natural gas legislation may be brought up on the House floor tomorrow and that we have a good chance of passing the Krueger amendment to the Dingell emergency bill if the opponents of deregulation fail in their attempts to frustrate the legislative process. This House ·vote could well be one of the most important votes the Nation ever takes regarding its energy future its ability to become independent. Failure to deregulate new gas could result in an additional 2 million barrels per day of oil imports by 1985. There is absolutely no reason not to deregulate new gas. The issue has been studied to death; trends of current regulation and the reasons for those trends (declining domestic production) are perfectly clearj it is time to act. We have been fortunate this winter in that our earlier estimates of shortages have not come completely to pass. But we cannot let the lessening dangers of this winter lessen the need or motivation for action. We have been lucky -- mother nature did for us with its warmer tempera­ tures what the Congress has been unable to do -- but our luck will not last forever. The situation is deteriorating so rapidly that even mother nature will not be able to help in the months ahead. There are, of course, costs to deregulating new gas -- gas will cost more in the future. But the benefits are greater: not only will we be able to use our remaining supplies of our cleanest fuel, but our vulnerability to embargoes will be reduced dramatically. Besides, the costs will be no different to the Nation from deregulation than from continued regulation. If regulation continues, the gas will not be produced, and consumers will .have to switch to higher priced oil. The issue of protecting the consumer is thus a false issue -­ it is simplY a question of our gas versus someone:elses oil. As you know, the Administration supports the basic thrusts of the Krueger amendment. Frank is here to discuss the Krueger bill and the advantag~s we see in it over and above the Pearson-Bentsen bill passed by the Senate. Frank, why don't you spend a few minutes going bill. l" z.. 1'1 ] H~D :RAL FN ERGY ADM INISTRATJON rl,~)i;: PU ":;' . C. ~.! ... PB }'J..:I-II ·· j J j :.'Ph'::'OR :..~tI Jj •..1LCT: !Y j :\",1( :;ry, ::r.TCY ';OJ\1;!!'LV· . .I I Ol ' t:'.oLJ,L FOr: ,!"TE I'.b .~; Rl,J~ GO"I~m· : r , ::dl' .. ~ TtL'­ a ...ta:h~d fl r.<l f\=. ! ~~r; 'l f o 1:' yo'\. r si~rna t. tl c: G-+-a1. 1 ': Hh ~~s a g(;;l':"" R1 Cfa: 1 ' mC', _r tLe Fcd '~ri'\l t : ner~n' r~~na lenGnt Pr'c _, rar: J :i u~dJg 1 n ::'0 . e e nc~g 'l in ?Y 1976 than "ias lJ~ e;;, i'l l.· Y 1 9 7 5 . 1 La ::>c yea:c'c GO' 1 I, le'''' 15 percent J:.:C .ow py "fl7:1 l L'v..::: ls of \.( 5 "' ; , he. act -. 1 ii.':;hic ·l Cl,\:....t l:. NetS 2!~ ~ . ercc nt 1:2- 10\; the ~ ) .;t s ' .; li· 1(':. I•.'. a (; "'ncir'3f1art:-. ic:i..nati l\T '.o(C ':: c.~ ad'v:_s c c1 a1: tJ. (~ sta ff le·'ve l thR I: '.:11i5 WilS am:: tcntat ' ve qOt'l, :L fe r FY 1 9 7 ';:; . SOIree , noi:..- !';ly p,=,,')(1r . l OJ..: ;-:, " c n·'e , i.I'!.. .~ ~ Tr t ~!. ~ve i 3:JU{~ (1 t ~ n1r' , ~r ni '~ 81il! es lJ J.3e :~' on \. is infor. :.:~: ion. 'Ile goaJ­ '.]::-AS <:'.ls o jisC,-1:3 ::1ed in 'l..e ). : . ,iV;;.·- · ~c ..• r Act.ion Plan, ,Hl'ell ~..iaf'i circul~t~d t o ·t.:lS ~. q cn '.::: i~s fol:' pr _lL'i:' 11 r y c ovment. nc'he ...:ir s t q n c. r t er ' S ,...- ."~ " u""'"• '" ( . Ira, ; a ....... ~'- ~· ·' c·•, l """,.. ·l) il'_. lcJ';... C"~'1. I --'__ t1-.·.. .....i ~ c,""~ . a 'lJ.. ........;,., t", •.:-' • c.-I ·j·;·:··:-ic... ... >J ~ .. and acili cV.'t1j l. n CGL50nanc , :li·t:h Y01,1T cIt-;cision i-:tS Go nveyc: ~1 t o u ~ Ly Ie ' Gl o~ar of t h~ Offic e o f r~ nageroBnt an~ Budgot. (,~1 1 be mo st e f f. ct.i.Vf~ in :L eempl!~i: C! i,~.in(3 the Yo u)':' ~ > i \:r atu17 in-hou s e cd ? i:c·C5 t.o rn ano.';:i0 our.­ G;.Cl:gy i hlp.:)y-i-:;,\llr: e 0 .,­ our res ·n=· :..:~s vli ..,cly . be: Off cial File FE.:1" RC<.)(Ji Ll q 1\E ( 2.) /\.() ~F i 1e E~"~E C :r.:on I': v :rc' Ck f>Ol'L c:ur""ll' / nlt : rnl . S31l, NPOB, X7934:2/5/76 -­----­-­-­_._--­ - -­ -­-­ CONCURRE.!l~. S~__. __ _ SYMnc. r ._ _ .____ .._. _._+---.:c__--I -.­--­- -+----.- ..- r-.---.­ - -_._ -­ .._---­ ....... --­ ----­- - - .•.­ -------­ - ------ ­ - -===_ 0·---====='==_=---=cc .. .. ­ ---­ - -­--- OFriCIAL FILE COpy 1' 1' /, I II GPO 002·0£'8 DRAFT THE \rHIITE IIOUSE ~'EI~ORAI'mun FOR HEADS OF DEPARH1ENTS AND !\GENC IES SUBJECT: ENERGY CONSERVATION GOAL FOR FY 1976 As you kno\'/, I asked the Federal Government in FY 1974 and FY 1975 to reduce its energy use by targets of 7 percent and 15 percent re~pectively. These goals were exceeded in both fiscal years and savings of about 24 percent were achieved in both years. The significance of these savings can be better understood in terms of the equivalent costs in barrels of oil and dollars. Energy use reduction in FY 1974 saved the equivalent of 247,900 barrels of oil per day; in FY 1975 this savings rate was 2GG,17L~ C0S'LS You may be justifiably proud of the contribution your organization has made to this accomplishment. But the energy problem remains. Therefore, it is imperative that we continue our energy conservation effort in the federal Government. I ask each of you to review the patterns of energy use in your respective departments and agencies, and to make it an objective of your organization to maintain the energy use reductions achieved in FY 1974 and FY 1975. That is, our goal should be to usc no more energy in FY 76 than was used in FY 1975. Again, my thanks to you and your personnel fo)~ their efforts \'lhich have made the Federal Energy Management Progrum a success. ~1uch has been accomplished, but much remains to be done. Your continued cooperation and assistance are an essential part of our nutional effo)·t to achieve energy independence. Gerald R. Ford Pres'ident ---"'" < ::-'. ';:;.,9 :.' r::" 0::' uJ ~ ,­ t ,..,., ...... PRE!. I} 1NARY First (\lInrter--Fi ~("al Yea r j 970 t fnerrv Cons("rV3 t 10n Perfornance (lltl. x 109) Tctals BuildinGs and Facilities Vehicles anG rquip~ent Used Saved Percent Baseline Csed Savec Pe=ce~t __________P_e_r_c_' ., t lIasel1ueBase­ csea ~~Fart=en:/A~ency Easeline ! 1,475.6 1,641.7 (166.1) (11.3) 2,55~.7 2,7S6.8 (236.1) (9.3) AEric'..!:ture 1,075.1 1,145.1 (70.0) (6.5) 0.3625 (0.05) (16.0) 0.3125 0.3625 (O.C5) (:6.~) Civ!l Aeror.au:!cs Board y 0.3125 22.75 0.375 1.6 23.125 22.75 0.3i5 1.6 Civil Service Co=cission }j 23.125 425.2 (159.0) (59.7) 839.6 1,019.2 (li9.f) (2".~) Co:-:':'!!'ce 573.4 594.0 (20.6) (3.6) 266.2 351,809.7 324,337.627,472.1 7.8 6 4 123~,220.6 216,108.0 20,112.6 8.5 ~e!e-:-:.se 115,589.1 108,229.6 "7,359.5 429.2 (41.3) (10.7) 19,900.9 18,825.6 l,Oi5.3 5.4 !~er~y R~sea!'c~ & 19,513.0 18,396.4.
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