One major result of recent oil shortages has been increased debate about the Nation's oil import program. Since 1959 the United States has had a mandatory oil import program which limited the amount of crude oil and petroleum products which could be imported. The purpose was to provide security for U.S. supplies of liquid fuels by limiting imports thus enabling the U.S. industry to maintain indigenous productive capacity. The program, however, has been under constant attack by its opponents as being a very costly method of maintaining security of supply. During most of this period world oil prices were approximately $2 per barrel while domestic prices (including the imported oil) were around $3.25 per barrel. As a result of the increasing criticism of the program and its associated administrative procedures, a Cabinet Task Force on Oil Import Control was appointed by the President in March, 1970 to be chaired by the then Secretary of Labor George P. Schultz. The Task Force reported in February, 1970. The majority report recommended that quotas be phased out and replaced with a tariff system. The minority report, on the other hand, recommended that quotas be maintained but the percentage of the U.S. oil supply imported be increased over a 5 year period. Following the release of the report, three congressional subcommittees held hearings on the subject. The Subcommittee on Mines and Mining of the House Committee on Interior and Insular Affairs reported that a majority of the subcommittee disagreed with the Task Force majority report and urged that the queta program be retained. The Subcommittee on Anti-Trust and Monopoly of the Senate Judiciary Committee and the Small Business also held hearings but have taken no action on the report. On July 15 the House Ways and Means Committee voted to add a provision to pending trade legislation which would in effect bar the President from using the tariff system. On August 17 the administration announced that it would attempt to improve the oil import quota system rather than adopt the tariff system. The decision was based on a revised appraisal of oil demand and supply, disruption of Middle East oil shipments, and an acceleration of energy planning due to the fuel crisis. Despite the retention of the quota system, imports were increased selectively during this period to avoid shortages. In June, imports were increased by 100,000 barrels per day so that total imports were larger than the 12.2 percent of domestic production which the import program had historically maintained. In addition, an increase of 40,000 barrels per day in the No. 2 oil quota was announced by the administration in June for the second half of the year, and a further increase of the same amount was authorized in October for the first quarter of 1971. One of her change in the import structure was the establishment of a ceiling on Canadian oil imports by the President in March 1970, but this did not affect the total amount of oil which could be imported. Another aspect of the oil supply situation which has been affected by recent events is the development of new domestic supply sources. One such source is the north slope of Alaska. Development of this resource and the related trans-Alaska pipeline has been delayed pending settlement of Alaskan native land claims and contention by some that plans do not adequately protect the environment. Former Secretary of the Interior Walter Hickel had agreed not to permit pipeline construction until the 91st Congress settled the native claims. Even when the permit is issued, however, it is likely to be challenged in court by conservation groups. The Senate Committee on Interior and Insular Affairs has held hearings on this matter during August, September, October, and November of 1970. In May 1970, the President announced administration proposals concerning another possible source of oil, the Outer Continental Shelf. He proposed that the Nation renounce claims over natural resources of the sea at a depth greater than 200 meters, and that an international regime be established to exploit resources at greater depths. Previous to this announcement, the Special Subcommittee on the Outer Continental Shelf of the Senate Interior and Insular Affairs Committee held a series of hearings to develop policies on the OCS. One other fuel resource which might be developed is domestic oil shale. As a result of hearings held in May 1970 by the Subcommittee on Minerals, Materials, and Fuels of the Senate Committee on Interior and Insular Affairs, the Department of the Interior undertook to cooperate with the States to develop a program designed to protect the environment when commercial development was undertaken. In addition to shortages of generating capacity and difficulties in obtaining fuels, the increased public awareness of environmental problems has had a great impact on the electric utilities. In late 1968 a report was issued by the Citizens Advisory Committee on Recreation and Natural Beauty which recommended various ways in which the industry should take greater cognizance of the environmental effects of power generation. This position was endorsed and carried further by a later report of the Committe on Utilities of the President's Council on Recreation and Natural Beauty. Most people agree on the importance of considering the effects of power generation on the environment, but actually assessing this impact, as well as the comparative impact of different types of plants, has proven difficult. The Joint Committee on Atomic Energy tackled this latter problem in a series of hearings in late 1969 and early 1970. The Subcommittee on Energy, Natural Resource, and the Environment held hearings on the environmental effects of electric generation on Lake Michigan, with emphasis on thermal pollution, in March 1970. These issues and others were also discussed at the FPC oversight hearings of the Subcommittees on Energy, Natural Resources, and the Environment of the Senate Committee on Commerce. In addition to ongoing FPC interest in these problems, the Executive has been active in these problems through the Office of Science and Technology. OST issued two reports-"Considerations Affecting Steam Power Plant Siting" in December 1968 and "Electric Power and the Environment" in August 1970-which studied the power generation/environment issue and offered recommendations for longer range planning. The Legislative Reference Service has also produced a report on these problems for the Joint Committee entitled "The Economy, Energy, and the Environment." One final factor which has further complicated the energy picture is the increasing concentration in both the electric generation and fuels industries. The number of privately owned firms in the generation fields has dropped from 1,000 in 1945 in 1970. The question whether the present mix of federally, privately, and cooperatively owned companies is desirable has not been resolved. In addition, major oil companies developed positions in coal and uranium during the latter part of the 1960's. This fact, coupled with rising fuel prices, has caused some to question whether competition has been impaired in the fuels industry. The Subcommittee on Antitrust and Monopoly of the Senate Judiciary Committee has held hearings on the subject in the spring of 1969 and 1970, and the FTC is now studying the question after urging from Congress. Two committee prints were issued by the Congress-both by the Committee on Public Works. The first is entitled "Some Environmental Implications of National Fuels Policies" and the other "Problems and Issues of a National Minerals Policy." These documents contain valuable information on energy and environmental problems resulting from its production and utilization. FORESTRY* Sharp increases in the price of lumber and plywood in early 1969 provided the impetus for a considerable share of the attention given to forestry in the 91st Congress. Action on this issue culminated in the decision by the House of Representatives to decline further action on the proposed National Forest Conservation and Management Act in February 1970. Other forest-related problems which continued to occupy the attention of Congress included funds for forest fire control; the allocation of forestry revenues; the exportation of sawlogs; permits for homes on National forest lands; and the management of timber resources. Nevertheless, the 91st Congress completed action on only a few forestry measures. The report of the Public Land Law Review Commission, which was released in June 1970, contained a number of recommendations to improve forest management, and these, along with recommendations contained in other reports on forestry can be expected to generate legislation in the 92d Congress. LEGISLATION One forestry bill receiving final action in the 91st Congress was Public Law 91-435 which allows the Forest Service to renew certain contracts for aerial facilities and services annually, but not more than twice, without additional advertising. The act's legislative history follows: TO AMEND THE DEPARTMENT OF AGRICULTURE ORGANIC ACT OF House: Reported from Agriculture (No. 91-1295) July 13, 1970. Passed July 20, 1970. Senate: Reported from Agriculture and Forestry (No. 91– 1202) September 17, 1970. Passed: September 21, 1970. Approved October 6, 1970. Public Law 91-425. Public Law 91-550, the Taos Indian Land Act, gave the Taos Pueblos title to 48,000 acres of land within the Carson National Forest in New Mexico. Under the act, the Taos Indians will be permitted to use the area, which includes their Blue Lake shrine, for their traditional religious purposes without interference. Some observers fear this action may establish an unfortunate precedent for similar claims on other Federal lands. TAOS INDIAN LAND ACT House: H.R. 471. Reported (No. 91-326) June 25, 1969, from Interior and Insular Affairs. Passed September 9, 1969. *Prepared by Elmer W. Shaw, Analyst, Environmental Policy Division. Senate: H.R. 471. Reported (No. 91-1345) November 16, 1970, from Interior and Insular Affairs. Passed December 2, 1970. Approved: December 15, 1970. Public Law 91-550. The present restriction on log exports from Washington, Oregon, and California, which permits the export of 350 million board feet of logs from Federal lands each year, was due to expire at the end of 1971. Under an amendment to the Housing and Urban Development Act of 1970 (Public Law 91-609), the restrictions were extended for 2 more years until December 31, 1973. LEGISLATIVE PROPOSALS TIMBER SUPPLY Rising lumber and plywood prices in the early part of 1969 focused congressional attention on the economic aspects of forestry. Hearings in both the House and Senate on the issue resulted in the introduction of a number of proposals designed to improve timber supplies. The Subcommittee on Housing and Urban Affairs of the Senate Banking and Currency Committee held hearings in March 1969; similar hearings were held by the Committee on Banking and Currency in the House of Representatives in the same month. On March 10, the President announced the appointment of a special task force to study the problem. The Subcommittee on Forestry of the House Committee on Agriculture held hearings in May 1969 on bills designed to stimulate development and improve management of timber resources in the national forests. As a result of the hearings the proposed National Forest Timber Conservation and Management Act of 1969 was introduced; its purpose was more efficient development and improved management of national forest commercial forest land and the establishment of a high timber yield fund from receipts from sales of timber and other forest products. It was reported (No. 91-655) by the Committee on Agriculture on November 18, 1969. Meanwhile, the Senate Agriculture and Forestry Committee held hearings on a counterpart bill, which was not reported to the Senate. Findings developed during hearings were summarized in House Report No. 91-655, which stated in part: The Congress hereby finds that in order to meet increasing national demands for lumber and other wood products, including that needed for home construction, it is necessary to increase substantially the timber yield from the commercial forest land of the Nation including that in the national forests; that, through intensified development and management, such land is capable of producing a substantially increased yield; that the national forests are the source of a substantial part of the present and future supply of the timber within the policy of the Congress stated in the Multiple-Use Sustained Yield Act approved on June 12, 1960; that increased annual harvests from national forest commercial forest land may be permitted under sound conservation principles on the basis of short-range accomplishments so long as long-range goals are assured; and that to accomplish increased annual harvest it is necessary to provide a reliable and adequate source of funds. Many conservation organizations opposed the bill on grounds that it might endanger wilderness and esthetic values. Others held the view that its need would be diminished by the development of substitutes |