United Stales
Ervironmental Protection
Agency
Office of
Research and Development
Washington D.C. 20460
EPA 600/9-80-008
January 1980
Office of Environmental Engineering and Technology
The Federal Nonnuclear
Energy Research and
Development Act
(Public Law 93-577)
Section 11
Environmental Evaluation
Report to the President
and Congress

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                     Public  Law  93-577
                  93rd Congress,  S. 1283
                     December 31,  1974

                           an  act
To establish a national program for research  and development in nonnuclear
                          energy sources.

  Be it enacted by the /Senate and House of Rept-eseHtatires of the
United States of America in Congress assembled,

                          SHORT  TITLE

  SECTION 1. This Act may be cited as the ''Federal Xonnuclear Energy
Research and Development Act of 1974".
Federal Non-
nuclear Energy
Research and
Development
Act of 1974.
42 USC 5901
note.
88 STAT. 1878
                   ENVIRONMENTAL EVALUATION

   SEC. 11.  (a) The Council on Environmental Quality is authorized
and directed to carry out a continuing analysis of the effect of appli-
cation of nonnuclear energy technologies to evaluate—
       (1) the adequacy of attention to energy conservation methods;
     and
       (2) the adequacy of  attention to environmental protection and
     the  environmental  consequences  of the application of  energy
     technologies.
   (b)  The Council on  Environmental Quality, in carrying out the
provisions of this section, may employ consultants or contractors and
may by fund transfer employ the services of other Federal agencies
for the conduct of studies and investigations.
   (c) The Council on Environmental Quality shall hold annual public
hearings on the conduct of energy research and development and the
probable environmental consequences of trends in  the  development
and application of energy technologies. The transcript of the hearings
shall be published and made available to the public.
   (d) The Council on Environmental Quality shall make such  reports
to the President, the. Administrator, and the Congress as it deems
appropriate concerning  the conduct of energy research and develop-
ment. The  President  as a part of the annual Environmental Policy
Report required by section 201 of the National Environmental Policy
Act of 1009 (-12 U.'S.C. 4341) shall set forth the findings of the Council
on Environmental  Quality concerning  the probable environmental
consequences of trends in the development and application of energy
technologies.
42 USC  5910.
Hearings,
Transcript,
availability.
Report to
President,
Administra-
tor, and
Congress.

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United States       Office of         EPA 600/9-80-008
Environmental Protection   Research and Development   January 1980
Agency         Washington D.C. 20460

Office of Environmental Engineering and Technology
The Federal Nonnuclear
Energy Research and
Development Act
(Public Law 93-577)
Section 11
Environmental Evaluation
Report to the President
and Congress

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    \
         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                          WASHINGTON, D.C.  20460
                      LETTER OF TRANSMITTAL

                                                                THE ADMINISTRATOR
THE PRESIDENT AND CONGRESS OF THE UNITED STATES
     I am pleased to submit herewith the Environmental  Protection Agency
Report to the President and Congress of the United States in accordance
with the direction contained in Section 11  of the Federal Nonnuclear
Energy Research and Development Act of 1974 (PL 93-577).

     The Act calls upon the Agency to analyze the effect  of applica-
tion of nonnuclear energy technologies to evaluate - (a)  the adequacy
of attention to energy conservation methods; and (b) the  adequacy of
attention to environmental protection and the environmental  consequences
of the application of energy technologies.

     This report sets forth the Agency's findings concerning the conse-
quences of trends in the development and application of energy technologies,
In our report5 we have sought to define both the scope  and context of
these issues.  By presenting and considering the comments of other inter-
ested parties obtained in public hearings mandated by the Act, the report
reflects the full range of opinions available to the Agency during our
deliberations.

     I trust that the report proves fully satisfactory.  If such is
not the case, or if there are any additional questions, please contact
me.

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Abbreviations




Executive Summary




SECTION I.




SECTION II.




SECTION III.




APPENDICES








REFERENCES
 Figure 1.




 Figure 2.
           TABLE OF CONTENTS






                                                             Page






                                                               viii




                                                                 1




Overview of 1979 Section 11 Activities	    5




DOE Technical and Environmental Project Review Process	    7




Findings and Recommendations	   13




A. Regional Workshop Summaries	   27




B. National Hearing Summary	   37


















                  FIGURES






Major System Acquisition Review Process	    7




DOE Environmental Documents 	    9
                                          vu

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                 ABBREVIATIONS
DOE




DOI




EAC




EA




ECC




EDP




EIS




EPA




ERD




ESAAB




MSA




NEPA




PEP




PPBS




PPMS




RD&D
Department of Energy




Department of Interior




Environmental Advisory Committee




Environmental Assessment



Environmental Coordination Committee



Environmental Development Plan




Environmental Impact Statement




Environmental Protection Agency



Environmental Readiness Document



Energy Systems Acquisition Advisory Board



Major System Acquisition




National Environmental Policy Act



Project Environmental Plan



Planning Programming and Budgeting System



Program and Project Management System




Research, Development, and Demonstration
                         vm

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EXECUTIVE SUMMARY
Introduction

  Under Section 11 of  the  Federal Nonnuclear
Energy Research and Development Act of 1974
(Public Law 93-577), the Environmental Protection
Agency (EPA) is now responsible for an annual
review of
   the adequacy of attention to energy conservation
   methods and environmental protection...and the envi-
   ronmental consequences of the application of energy
   technologies...within the Federal Nonnuclear Energy
   Research and Development Program...
   Past Section 11 reviews have revealed that the
public is deeply divided on how research resources
should be allocated and has h'ttle knowledge of
how the Department of Energy (DOE) plans and
manages research, development, and demonstration
(RD&D) for nonnuclear technologies. Consequently,
this year's Section 11  program examined DOE's
"adequacy  of attention"  not in terms of the
relative share of the RD&D budget given to par-
ticular technologies, but rather in terms of how
information on "conservation methods  and envi-
ronmental protection" is  used in  major DOE
management  decisions  controlling  technology
RD&D.

   The 1979 Section 11 review initially focused its
attention on the Program and Project Management
System (PPMS) which was DOE's basic system for
reviewing major technology RD&D projects. Dur-
ing the course of the analysis, however,  it became
clear that many problems associated with the envi-
ronmental aspects of technology development were
not  a function only of PPMS but  resulted also
from conflicting program  and policy priorities.
Many  of these  conflicts extend far beyond the
Department's control  and  reflect  the  differing
views of the  American public regarding energy
policy. The findings  and recommendations pre-
sented in this report are not limited to this project
review system, but also address certain aspects of
the nonnuclear energy RD&D policy process. How-
ever, since the scope of this review  is limited to
environmental and  energy conservation  concerns,
comments on the overall policy process  are made
from that perspective and may not reflect all the
factors which bear on the process.
  A number of changes have occurred within DOE
since the 1979 Section 11 analysis was completed.
These include the following:

 •  PPMS has been superseded by a new Project
    Management System. A manual describing this
    new system is currently in preparation.

 •  A Planning, Program, and Budgeting System
    has  been developed for the Department that
    integrates  programs,  projects,  and   the
    budgetary process.

 •  A Conservation  Strategy  prepared  by  the
    Office of Conservation  and Solar Energy is
    being revised by that  Office and Secretary
    Duncan's staff.

 •  Two new DOE committees have been established
    to enhance Federal, State, and local coordina-
    tion and cooperation.

 •  A Health Effects Assessments Program has
    been initiated within DOE's Office of Environ-
    ment to improve the Office's ability to conduct
    cross-technology analyses.

 •  A Citizen Participation Manual was published
    to assist  all  DOE  Offices  in designing  and
    implementing public involvement programs.

 •  The Office of Environment commissioned a
    study of the Environmental Advisory Committee
    (EAC)  "assessing its  first year's operation
    and identifying areas that needed improvement
    and  suggested  actions to enhance the effec-
    tiveness of the Committee." The results of the
    study are to be presented during the mid-
    January 1980 meeting of the EAC.

It is likely that some of the problems discussed in
this report will be alleviated by these changes.

Organization of the Report

  The two major Section 11 activities for this year
are detailed in Chapter I. They involved: (1) an
analysis of DOE's review and decisionmaking pro-
cess for  nonnuclear RD&D projects, and (2) wide-
ranging  discussions with  the public, structured
through workshops and hearings. Appendices A
and B summarize the workshops and Hearing.

  The mechanism established by DOE in 1978 for
setting the pace of federally  supported  energy
technology  development and for undertaking the

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 technical, economic, and environmental review of
 RD&D projects  was the  Program  and  Project
 Management System. This system is described in
 Chapter II. The 1979 Section 11 review was based
 on this project review system and other DOE proce-
 dures in operation until the fall of 1979. Chapter II
 also summarizes  recent changes in DOE that are
 relevant to this report.

   Analysis of the findings gained from the Section
 11 review resulted in recommendations in six areas.
 These recommendations have the following overall
 goals:

  • To suggest areas in which DOE's attention to
    environmental issues in its  management and
    decisionmaking process could be improved.

 • To indicate steps DOE can take to improve its
    credibility with the public and demonstrate that
    it is giving "adequate attention to energy con-
    servation and environmental protection."

   Chapter  III discusses in detail the findings and
 recommendations from  the Section 11 program.
 These recommendations  are summarized briefly
 below.
energy RD&D is to generate information to reduce
this  uncertainty  and  to  solve  the problems
associated with various technologies. DOE pro-
gram and project plans should be based on  an
evaluation of the  barriers preventing the develop-
ment of energy technologies, such as the availability
of effective environmental control technologies.
Research should  be specifically directed toward
overcoming these  barriers.
C. Project Review Process

  In the past, high-cost, large-scale projects have
appeared to receive  a disproportionate share  of
senior  DOE management attention through the
project  management system. Research programs
such as those  in the area of conservation which
involve numerous small projects have not received
comparable senior Department-wide review. Fur-
ther, projects with potentially severe environmen-
tal impacts  do not appear to be assured of compre-
hensive review.  DOE's project  review process
should be  modified  to provide a more balanced
and  comprehensive  review that includes  more
evaluation of such programs as energy conservation.
Major Findings and Recommendations

A.  Nonnuclear Energy RD&D Priorities

  DOE's  priorities  do  not  appear  to  reflect
systematic comparative evaluations of alternative
technologies. In  particular, environmental attri-
butes are not compared  and supply technologies
are not evaluated against the potential for reducing
demand  through energy conservation measures.
An approach to such comparisons is to base them
on  the ultimate "end use" of the energy. DOE
priorities should reflect  systematic  and explicit
comparisons of production and conservation alter-
natives. The comparisons should establish prior-
ities on the basis of energy efficiency and environ-
mental attributes.
D. Evaluation Criteria for Technology
   Development

  It  is not  clear  what  formal  environmental
criteria, if any, DOE uses as a basis for project
reviews and priority-setting. The  development of
explicit criteria and consistent, systematic applica-
tion  of them would contribute  significantly to
DOE's credibility in addressing environmental con-
cerns. DOE should develop explicit environmental
criteria for use in formulating energy policy  and
evaluating  technology development, and submit
those criteria for public  and peer review.  The
criteria should facilitate  quantitative   cross-
technology  comparisons,  where  possible,  and
include explicit examination  of health, environ-
mental, and socioeconomic impacts.
B.  Purpose of DOE Nonnuclear RD&D

  The major barrier  to commercial use of  a
technology is, in many  cases,  a high degree of
uncertainty.  This  includes  uncertainty  about
environmental performance,  engineering  perfor-
mance, and process costs. The primary purpose of
E. Resolution of Environmental Issues at the
    National, Regional, and Local Levels

  The  development  of an  energy  technology
requires that environmental  problems be addressed
at three levels:  local site-specific (e.g., ground
water contamination); regional or cumulative (e.g.,

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water resource use); and  national  (e.g.,  health
effects).  DOE's  management  process  does not
appear to assure that potential problems at each level
are clearly identified and resolved in a timely and
effective manner, or that responsibility for analysis
of  regional and site-specific impacts  is  clearly
defined. DOE should clearly assign organizational
responsibilities, and allocate resources for effec-
tively  treating  environmental  issues  at  local,
regional, and national levels. DOE should involve
State and local agencies   in  the  resolution of
environmental issues in order to both expedite and
improve the process.
F.  Public Participation in Nonnuclear RD&D

   Workshop and Hearing participants felt strongly
that  DOE  does not  systematically  involve  the
public in the energy technology development deci-
sion  process except as required by the  National
Environmental Policy Act. Since the public has not
routinely been offered the opportunity to comment
on the environmental documents associated with
the project review process, it has been hindered in
its participation in  early  decisions  on  energy
technology  development. DOE should systemati-
cally involve the public in a timely and meaningful
manner in  consideration of the environmental
aspects of policy development, program planning,
and project management.
   Hearing  witnesses  claimed  that  well-funded
 public interest groups, industry and scientists have
 been overrepresented in DOE public participation
 forums, and that members of the general public
 who are well-educated on energy matters often can-
 not afford  the time and  cost of presenting  their
 views. DOE should actively pursue means by which
 a broader  cross  section of the  public can  be
 represented in the Department's decisionmaking
 processes.
  DOE has  few effective mechanisms  for  dis-
tributing information to the public, and many of
the materials disseminated are  difficult for the
public to  read and understand.  DOE  should
improve  its efforts  to provide  citizens with the
information necessary for them to understand and
comment effectively on  energy development.
  The DOE Environmental Advisory Committee
was established in early 1979 to advise the Secretary
on "policies that affect the environment and the
safety of the general public." However, the com-
mittee's role within the Department  is not well
understood. DOE should clarify the  role of the
Environmental Advisory Committee and link the
Committee's functions  more directly to Depart-
mental activities.

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I. OVERVIEW OF 1979 SECTION 11
  ACTIVITES
The Section 11 Mandate

  The Federal Nonnuclear Energy Research  and
Development Act (Public Law 93-577) was passed
in December 1974 as part of the national response
to  the effects of the 1973  Arab  Oil Embargo.
The legislation created a comprehensive national
research, development, and demonstration (RD&D)
program for nonnuclear energy technologies, with
total Federal investments of nearly $20 billion over
a 10-year period. Further,  it required the development
of the

   ...technological capabilities to support the broadest
   range of energy policy options through conservation and
   the use of domestic  resources by socially and environ-
   mentally acceptable means.

   Section 11 of Public Law 93-577 directs an annual
review of

   ...the adequacy of attention to energy conservation
   methods and environmental protection...and the envi-
   ronmental  consequences of the application of energy
   technologies.

   The Office of Environmental Engineering  and
Technology within the Environmental Protection
Agency's (EPA) Office of Research and Develop-
ment  has been  assigned responsibility  for   the
review  and is charged  with conducting  annual
public  hearings  and preparing this  Report to
the President and Congress.
 Focus of Activities

   The Section 11 activities in 1978 focused on the
 allocation  of the Department of Energy's (DOE)
 RD&D budget resources among competing energy
 technologies. During the public hearings, it became
 apparent that there were deep differences of opinion
 on how research dollars should be spent. However,
 there was one point on which witnesses did agree:
 outside the Department of Energy there is a general
 lack of understanding  of DOE's  decisionmaking
 processes and the manner in which environmental
 considerations enter these processes. This lack of
 understanding appears to have damaged DOE's
 credibility  with the public, generating controversy
 rather than  consensus  on how to  deal with the
 Nation's energy problems.
  Consequently, the 1979 Section 11 program did
not evaluate specific budget allocations. Rather,
the planning and management processes  were
examined to ascertain how they address concerns
for environmental protection and energy conserva-
tion.  In other words,  this year the "adequacy of
attention" was evaluated not in terms of the relative
share of the RD&D  budget  given to particular
technologies, but rather in terms  of how informa-
tion on "conservation methods and environmental
protection"  is  used  in  the major management
decisions controlling DOE's technology RD&D.
Specific Section 11 Activities

  The 1979 Section 11 activities had two compo-
nents: an analysis of how environmental concerns
are treated in DOE nonnuclear RD&D, and discus-
sions with the public about the adequacy of DOE's
attention to these environmental concerns. Specific
activities of the Section 11 program included pre-
paring and distributing  background  documents,
and conducting regional workshops and a National
Hearing.
  This year's program began with an investigation
of the procedures and documents used by: DOE to
guide the  development  of  energy technologies,
focusing on environmental review and its integration
with  technology development. The investigation
resulted in publication of a  document describing
DOE's major project review system and associated
environmental  assessments.* This document also
provided a case study of the application of these
procedures  to  geothermal  energy RD&D.  Five
other case studies were prepared to describe how
the project review system and associated environ-
mental  assessments  were related to the develop-
ment of  additional technologies.  A range  of
technologies was selected—from environmentally
benign or beneficial, such as cogeneration, to those
with the potential for serious  environmental  effects,
such as coal liquefaction.**
 * The Federal Nonnuclear Research and Development Act
   (Public Law 93-577), Section 11, Environmental Evaluation,
   EPA 600/9-79-020, June 1979.

** EPA Issue Paper on Urban Waste and Cogeneration
   Technologies, July 12, 1979; EPA Issue Paper on Oil Shale
   Technologies, July 18, 1979; EPA Issue Paper on Coal Liquefaction
   and Coal Gasification Technologies, July 31, 1979.

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  These  documents  were distributed to  a wide
range of public interest, environmental, govern-
ment, labor, and industry representatives, along
with invitations to one of four workshops where
one  or two technologies and the project review
process would be discussed.

  Workshops were held in Atlanta, Denver, San
Francisco,  and Pittsburgh.  At the  workshops,
technology  development and environmental assess-
ment were reviewed, with workshop members partici-
pating in an evaluation of these processes.  Each
workshop focused specifically on technologies under
development  in that region.  A  summary of the
workshop proceedings is included in Appendix A to
this report.

  Following the workshops, a document synthesizing
participants' comments, questions, and concerns
was prepared.* This document outlined five issues
which had emerged as overall themes during the
workshops:

  •  The appropriate level for treating environmental
    concerns;

  •  The types of projects receiving major manage
    ment attention;

  •  The  criteria  used  in  evaluating individual
    technologies;

  •  The  role of the public in evaluating environ-
    mental issues; and

  •  The  integration of environmental  factors into
    technology decisionmaking.

  These  issues served  as focal points for the
National Hearing.  Although Hearing  witnesses
were not limited to consideration of these partic-
ular issues in their testimony, they were encouraged
to examine them and present recommendations. In
   Background Document for the National Hearing,
   EPA 600/9-79-033, September 1979.
preparing testimony, witnesses were asked to con-
sider how their recommendations would affect the
adequacy of  attention given  to  environmental
concerns within DOE,  and how they might be
implemented by the Department.

  The National Hearing,  mandated by  Section
ll(c) of Public Law 93-577, was held October 3-5,
1979, in Washington, D.C. Thirty-five witnesses,
representing the general public, various  interest
groups,  environmental and  alternative  energy
groups,  State and local  governments,  research
scientists, and industry, testified during the 3 days.
Hearing  panel members included the DOE Assis-
tant Secretary for Environment,  and represen-
tatives from EPA, the Council on Environmental
Quality,  Congressional  Staff,  environmental
groups,  State government,  and   industry.  A
transcript of the Hearing will be published sepa-
rately but a summary of comments and testimony
at the Hearing is included in Appendix B.
Organization of this Report

  The remainder of this report  is organized as
follows:
   Chapter II presents a brief description of DOE's
   major project review system, upon which the
   workshop and Hearing discussions were based,
   and outlines recent changes in DOE which are
   relevant to the 1979 Section 11  review.

   Chapter  III discusses the issues raised in the
   1979 Section 11 Program, and presents recom-
   mendations for resolving these concerns and
   improving DOE's energy technology decision-
   making.

   Appendices A and B are detailed presentations
   of  the comments made during the regional
   workshops and National Hearing, respectively.

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II. DOE TECHNICAL AND ENVIRON-
   MENTAL PROJECT REVIEW
   PROCESS
Overview of the RD&D Project Review Process
  The  Federal Nonnuclear Energy Research and
Development Act of 1974 requires DOE to accelerate
the development of alternative energy technologies
consistent with national energy policy as laid out in
the biennial National Energy Plans. As part of its
responsibility to implement energy policy, DOE
conducts research programs to develop technol-
ogies that are technically  feasible, economically
practical, and environmentally acceptable.  Within
each program, specific projects are funded to move
an  emerging technology from  basic research  to
commercial  acceptance. The  projects progress
through several stages of increasing complexity and
scale—laboratory,  pilot,   demonstration,  and
commercialization. At  the end of each stage,  a
decision must be made whether or not to advance
the technology to the next stage.
  The 1979  Section  11 Program  examined  a
number of DOE management systems to determine
how environmental concerns affect nonnuclear
RD&D. The  Program and  Project  Management
System (PPMS) was selected for indepth analysis
because it was the principal DOE system guiding
the review  and approval of DOE's major tech-
nology development projects. The basic  purpose
of PPMS was to structure the review of individual
projects at the end of  each  development stage
before additional Federal resources were commit-
ted. Each project  was evaluated at these decision
points for technical feasibility, cost, and environ-
mental acceptability—but no comparisons were
made between projects. This review was conducted
by an Energy Systems Acquisition Advisory Board,
consisting of  senior DOE officials,  including  the
Assistant Secretary for Environment. As a result of
this review, recommendations were made to  the
DOE Under Secretary who determined whether a
project  should advance  to the  next stage  of
development.   Participation  in this review  was
important to  the  DOE  Office of  Environment
because it provided a direct link to  the develop-
ment, approval, and execution of DOE's major
technology  projects.  A  general outline of  the
process is illustrated below.
LABORATORY
RESEARCH


PI 1 I"»T

1
1
DEMONSTRATION
1
1
COMMERCIALIZATION
' 1
ESAAB
REVIEW AND
RECOMMENDATION
TO UNDER
SECRETARY


ESAAB
REVIEW AND
R ECOMMENDATION
TO UNDER
SECRETARY

                                                                  ESAAB
                                                                REVIEW AND
                                                              RECOMMENDATION
                                                                 TO UNDER
                                                                SECRETARY
                           INCREASING SCALE AND COMPLEXITY '
        ESAAB = Energy System Acquisition Advisory Board
                  FIGURE 1. MAJOR SYSTEM ACQUISITION REVIEW PROCESS

                                               7

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  Only  projects  designated  as "Major  System
Acquisitions" are consistently reviewed by senior
DOE management. DOE uses many factors to deter-
mine whether a project will be designated as a Major
System Acquisition,  however, the principal factor is
the level of Federal support.* Of approximately 300
nuclear  and  nonnuclear  DOE  technology RD&D
projects now underway,  only 25 to 30 are Major
System Acquisitions. These account for about 50 per-
cent of the total Departmental budget for energy
RD&D.

  DOE energy projects not designated Major System
Acquisitions are under the management responsibility
and direction of the appropriate energy technology
Program Office. These projects are reviewed only by
the appropriate Assistant Secretary or the Director of
Energy Research.  For these projects, environmental
concerns are addressed by an Environmental Coor-
dination  Committee (ECC). The functions of the
ECC are to provide a forum  for the  exchange of
viewpoints  between  the Office of Environment and
the technology Program Offices, and to oversee the
preparation and implementation of environmental
planning documents.
Environmental Planning, Review, and
Assessment Documents

   For all  RD&D  projects,  both Major System
Acquisitions and others, environmental research is
planned and assessed in a series of documents:**
A.  Planning Documents

  Environmental  Development  Plans  identify
environmental concerns and plan research to address
those concerns.  These plans describe environmental,
safety, and health research required at each stage
of program development so that decisionmakers
will   have  this  information as  they  consider
budgetary allocations for further development of
technology projects. Preparation of the Environ-
mental Development Plan for each program is the
 * For example, development cost criteria stipulate that a project is
   considered "a major system acquisition" if there is a total estimated
   Government cost share in excess of $50 million in the technology
   development phase or $200 million over the life of the system
   or project.

** Many of these documents existed before the PPMS was imple-
   mented, and it seems likely they, or some variant of them, will be
   retained in any new management system.
responsibility of the Environmental Coordination
Committee. This  Committee functions through
subcommittees  designated for each  technology.
Subcommittees include representatives from both
the Office of Environment and  the  appropriate
Program Office. The subcommittees prepare Project
Environmental Plans, which detail the site-specific
environmental research to be conducted for each
major project.
B.  Review and Assessment Documents

  Three   documents—Environmental  Readiness
Documents,  Environmental  Assessments,  and
Environmental  Impact  Statements—are  used to
assess the environmental  acceptability of  energy
projects.

  Environmental  Readiness  Documents  serve
several purposes. As  assessments  prepared inde-
pendently by the Office of Environment, they are
used by the Assistant Secretary for Environment to
advise the Energy Systems Acquisition Advisory
Board or a Program Manager as to whether it is
suitable for an  energy technology  to move to the
next stage of development. Environmental Readi-
ness Documents present  the results  of  environ-
mental research already carried  out, and provide
further definition of concerns and research needs
for subsequent stages of development. As reference
documents, Environmental Readiness Documents
are  also  designed  to  be useful in  "scoping"
environmental concerns and supporting  Environ-
mental Impact Statement preparation.


  The National Environmental Policy Act of 1969
(NEPA) requires Federal agencies to prepare Envi-
ronmental Impact Statements for major actions
that significantly affect the quality of the environ-
ment. An Environmental  Assessment is a prelim-
inary analysis to determine whether the impact of
an action will be significant, and is used to decide if
preparation of  an  Environmental Impact  State-
ment is necessary. At the present time,  Environ-
mental  Impact Statements  provide  the  major
opportunity for public  input into DOE  decision-
making through legislatively required  review and
comment.
  A further description of  NEPA and  internal
DOE environmental documents is given in Figure 2.

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       DOCUMENT
         PURPOSE
       CONTENTS
       PREPARER
    PUBLIC ACCESS
                                                                                                                             TIMING
1.  Environmental Develop-
   ment Plans (EDP)
2. Energy System Acquisition
   Project Environmental
   Plans 
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Recent Changes in the Department of Energy

  Several changes have occurred recently in DOE
organization and procedures which are relevant to
the issues raised in  this report. Some of these
changes  may alleviate specific problems described
in our findings and recommendations. However,
timing of the  changes has precluded an indepth
assessment of  their effects, so they have  not
generally been incorporated into the discussion of
issues.
 A. Program Planning and Policymaking

   The Department of Energy is in the process of
 updating several Internal  Management Directives
 and  Secretary-level  memoranda to improve its
 policymaking and program planning. A Planning,
 Program, and Budgeting System (PPBS) is under
 development within the Department to provide a
 multiyear system relating  budget cycle evaluation
 and program/project reviews.

   A  draft  Policy,   Programming,  and  Fiscal
 Guidance Document in support of PPBS is  now
 under review within DOE.  This document is an
 attempt to describe the Department's energy policies
 and programs/projects and their rationale.  It is
 primarily to  be used as guidance for  preparation of
 5-year DOE  program requirements for Fiscal Years
 (FY)  1982-1986. The  FY 1982-86 program develop-
 ment cycle began  when the  Policy,  Programming,
 and Fiscal Guidance Document was drafted and
 distributed  for internal DOE comment in mid-
 December,  1979. The PPBS will be the  manage-
 ment system used by the Department to  establish
 and maintain the 5-year Energy  Program and the
 Departmental budget.
 B. Project Management

   A recently completed DOE Project Management
 System  Study  reviewed the  PPMS  and  other
 project-level systems and recommended changes to
 "tighten and simplify procedures, establish clear
 lines  of responsibility,  ensure  appropriate delega-
 tion  of  authority,  and  establish  management
 accountability for project activities."*
 *Department of Energy, Project Management System Study,
  DESM 79-1, Summary of the Report, p. 1.
  A  manual  which  describes  the new Project
Management  System  is  under  preparation  and
scheduled to be completed in early 1980. Following
is a description of the new system taken from the
Study.

  The DOE Project Management System is intended to be
  an umbrella system tying together  and integrating all
  Departmental organizations and systems which have
  roles in project management... The requirements of
  this  management  system  are  mandatory  for the
  Department's Major System Acquisitions and Major
  Projects; the general principles should be used for other
  projects as far as practical. Uniform guidelines for appli-
  cation to other projects may be developed, if needed,
  after additional experience  with the system has been
  gained...*
C. Environmental Evaluation

  A newly formed  Health Effects Assessment
Program within DOE's Office of Environment is
attempting to develop information on health and
ecological  effects  of energy-related  pollutants.
Specifically, it is  attempting to  formulate scien-
tifically defensible, quantitative criteria and data,
assessing  health  risks from energy technology-
related pollutants.
D. Conservation Strategy

  In the fall of  1979,  Energy Secretary Charles
Duncan requested that the DOE Office of Conser-
vation and Solar Energy complete a conservation
strategy paper  that detailed current government
conservation programs and possible new initiatives
to cut energy consumption. A draft Conservation
Strategy Paper was completed in early November
1979.** The strategy paper was divided into several
sections, including an overview of U.S. conserva-
tion strategy, "cross-sectoral" programs and ini-
tiatives, and conservation in the residential/com-
mercial, the industrial, the transportation, and the
utility sectors. In the overview of the paper, it was
stated that "greater energy efficiency and reduced
petroleum consumption can be achieved without
adverse effects on present or future economic well-
being," but that "this potential will only be achieved
through a concerted effort to overcome a variety of
significant barriers."

 *ibid. p. 2.

**Draft U.S. Conservation Strategy, DOE Office of Conservation
  and Solar Energy, November 2, 1979.
                                                 10

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  During the fall, the document was modified to
incorporate  more  specifically  the Department's
1980 conservation objectives. The DOE Office of
Conservation and Solar Energy is now preparing a
fully documented strategy and program objectives
report.
E. Intergovernmental Coordination

  DOE has recently taken two significant steps to
enhance  intergovernmental  coordination  and
cooperation.  On October  1,  Secretary  Duncan
established  an Intergovernmental, Affairs Council
within the Department to promote internal coor-
dination and to facilitate the close cooperation of
the  Department  with State, local,  and  Indian
governments.* The purposes of the Council in-
clude: providing a  forum  for  resolving  issues;
involving State,  local, and Indian governmental
leaders in developing  energy priorities,  policies,
and programs; and  coordinating DOE resources
for intergovernmental initiatives. The membership
of the Council consists of 20 officials and delegates
from within the  Department, representing every
principal operating  and staff  component  and
including Regional Representatives.

   On November 30,  Secretary Duncan announced
the establishment of a Local  Government Energy
Policy Advisory Committee  which  "will  focus,
first  and  foremost, on developing  procedural
mechanisms that will enable local government offi-
cials to participate actively in the formulation and
implementation of national  energy policies."**

   The specific purposes  of  the  Committee are to
help  ensure that  energy programs and legislation
reflect and respond to the needs of local govern-
ments, that components of  the Department of
Energy are coordinating their activities with local
governments,  where appropriate, and to enhance
intergovernmental  communication  generally.
Thirty-three State, county and city officials nation-
wide were asked to serve on the Committee.


F. Public Participation

   Over  the summer,  DOE published a Citizen
Participation Manual  to  assist DOE officials in
designing and implementing public involvement

 *DOE Intergovernmental Affairs Council Charter, October 7,  1979.
**DOE News Release,  "Energy Secretary Establishes Local Govern-
  ment Advisory Group." R-79-510, November 30, 1979.
programs.  In  general,  the  Manual  presents  a
positive  commitment to  the concept  of public
participation:
   The legislation establishing the Department of Energy
   (DOE) (Public Law 95-91, Title I, Section 102) directs
   DOE to provide for, encourage, and assist the public to
   participate in the development and execution of national
   energy programs.

   Public understanding of the complexities of energy
   issues and public involvement in the decision process
   addressing these issues are essential steps in achieving an
   effective national energy policy. Because of time and
   resource constraints in the past, many of our programs
   and activities have not been well understood by the
   general public, resulting in a lack of basic understanding
   of the nature and objectives of such programs. We must
   improve our ability to effectively communicate with and
   respond to the energy concerns of the American people.
   Only through open and constructive communication can
   we work together to develop acceptable solutions to the
   energy problems facing the Nation."
   (Cover memorandum from former Deputy Secretary
   John F.  O'Leary.)

   The  Manual indicates  that  there  are  four
categories of DOE administrative processes which
call  for public  participation: regulation develop-
ment, policy development, planning, and program
operations. It stresses that

   public participation must be integrated into the total
   process so that events are relevant to the decisions and
   schedules of the administrative process.
G. Environmental Advisory Committee Study

  A study of the operation of the Environmental
Advisory Committee was  commissioned by the
DOE Assistant Secretary for Environment for use
at the  Committee's  January  1980 meeting. The
purpose of the  study was to "identify areas that
needed  improvement and  suggest   actions  to
enhance the effectiveness of the Committee."* The
study found that, although the Committee contained
a good  mix of  member capabilities  and leader-
ship  potential,  neither DOE  nor   Committee
member expectations had been met during the first
year. The study's major recommendations call for
DOE and the Committee to clarify their expecta-
tions, and  to agree  upon  "a new covenant" to
meet them.
 *The First Year: An Assessment, Delphi Research Associates,
  January 1980, p. 2.
                                                   11

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H. National Environmental Policy Act
  On  July  18, 1979, DOE  announced proposed
guidelines for compliance  with the  Council  on
Environmental Quality (CEQ) Regulations issued
as a result of the National Environmental Policy
Act. The DOE guidelines state that the Department
will "incorporate into early planning processes a
careful  consideration  of the  potential environ-
mental consequences of its  proposed actions, and
appropriate alternative courses of action."*
  The CEQ Regulations require that environmental
analyses concentrate on alternatives  and include
"scoping,  an early and open process  for deter-
mining the scope of the issue to be addressed." In
addition, they require a tiering concept

  which provides for focusing on the actual issues ripe for
  decision and eliminating repetitive discussions of the
  issues  already  decided.  Accordingly, environmental
  documents prepared for a policy level decision will pro-
  vide the foundation for subsequent program and project
  environmental documents.*

  The proposed DOE guidelines were published on
an interim basis pending publication in final form.
Written  comments were requested by DOE in the
Federal Register notice of the proposed guidelines.
Final regulations are expected to be published in
February 1980.
 •Department of Energy: Compliance with the National Environ-
  mental Policy Act, Proposed Guidelines, Federal Register,
  Volume 44, No. 139, Wednesday, July 18, 1979.
 •Council on Environmental Quality. National Environmental
  Policy Act — Regulations, Federal Register, Volume 43, No. 230,
  Wednesday, November 29, 1978.
                                                   12

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III.  FINDINGS AND
     RECOMMENDATIONS
Background

  This chapter discusses major concerns regarding
nonnuclear RD&D management which were raised
during the 1979 Section 11 program. The recom-
mendations have two overall goals:

  •  To suggest areas in which DOE's attention to
    conservation and environmental issues in its
    management and decisionmaking processes can
    be improved.

  •  To outline steps DOE  can  take to improve its
    credibility with the  public and to demonstrate
    that  it gives "adequate attention to  environ-
    mental  protection  and  energy  conservation
    methods...and the environmental consequences
    of the application of energy technologies."

 There are several Sections within Public Law
 93-577  that  relate  to  energy  conservation  and
 environmental  protection in  the  Federal Non-
 nuclear  Energy Research  and Development Pro-
 gram. These  Sections  and the recommendations
 suggested  in  this  chapter are  based upon the
 conviction that  disclosure, feedback, and  account-
 ability are integral to improving DOE's decision-
 making in the nonnuclear  RD&D program.

   Initially, the  1979 Section 11 review focused its
 attention  on the  DOE  Program  and   Project
 Management  System (PPMS) to determine how
 environmental and energy conservation  concerns
 had a demonstrable impact on technology RD&D
 projects. During  the  course of  the  analysis,
 however, it  became clear that many  concerns
 associated with the  environmental  aspects  of
 technology development were not a function only
 of PPMS, but resulted  from other  DOE priorities
 and the conflict of overlapping decisionmaking
 processes. Many of these  conflicts extend far
 beyond the Department's  control and reflect the
 differing views  of the American public regarding
 energy policy. The concerns and recommendations
 presented in this chapter  are  not  limited  to the
 PPMS, but also address certain aspects of the non-
 nuclear  energy  RD&D policy  process. However,
 since  the  scope  of this  review   is  limited to
 environmental and energy conservation concerns,
 comments on the overall policy process are made
from that perspective and may not reflect all the
factors which bear on the process. Before presenting
these concerns,  however, it is useful to discuss
lessons which can be learned from DOE's experience
with PPMS.

  During the time it was in effect, PPMS, with its
associated  environmental assessments, exhibited
several aspects of an effective review and documen-
tation system. Specifically:

 •  It provided a systematic means  of reviewing
    emerging energy technologies  by  identifying
    distinct stages through which every technology
    must pass, from initial  research to full-scale
    commercialization.

 •  It provided formal procedures which enabled
    the Office of Environment to play a role in
    DOE project decisions through membership on
    the Energy Systems Acquisition Advisory Board
    and chairmanship of the various Environmental
    Coordination Committee's subcommittees.

 •  It attempted  to  integrate energy  technology
    development projects  and  environmental
    research  through  timetables   and  review
    procedures.

  Despite these positive design features, there were
problems with the environmental planning  and
assessment process associated with PPMS. There
was an overall  concern regarding the extent to
which the system actually operated as it was designed.
As  one hearing witness noted:

  It seems clear that the process is systematically struc-
  tured. What is not clear is whether that process func-
  tions or simply exists on paper. It is not clear whether
  that process suffices to protect environmental concerns.
  We saw no guarantee that an identified environmental
  problem must be dealt with, that a mitigation strategy
  must be adopted, and  so forth.  It is not clear to  us
  that this process  necessarily identifies the needed envi-
  ronmental research related to a given technology or if it
  does identify it, that it proceeds to accomplish it, or if it
  accomplishes it, that it integrates the results into actions in
  future decisions.
  (Richard Pratt, Pennsylvania Sierra Club)


  In addition to specific issues regarding the design
and operation of the project review  and assess-
ment process, a major finding of the Section 11
analysis  was that the public as represented in the
workshops and  the Hearing  does not appear to
understand,  and  therefore lacks  confidence in
DOE's systems for treating environmental issues.
                                                 13

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  The concerns  about the adequacy  of DOE's
"attention to environmental protection and energy
conservation"  in  its  RD&D  programs  which
resulted from the 1979 Section 11 program can be
grouped into six major areas.  These are:

  A.  Nonnuclear energy RD&D priorities;

  B.  Purpose of nonnuclear RD&D;

  C.  Project review process;

  D.  Evaluation criteria for technology develop-
       ment;

  E.  Resolution of environmental issues at the
       national,  regional, and local levels; and

  F.   Public participation in nonnuclear RD&D.
 MAJOR FINDINGS AND
 RECOMMENDATIONS
 A. Nonnuclear Energy RD&D Priorities
   FINDING: DOE's priorities for technology
   development  are not based on comparative
   evaluation of alternative technologies.


   Past DOE  procedures for  RD&D  decision-
 making have  not led to comprehensive analysis,
 comparative  evaluation,  and  prioritization  of
 potential  alternatives for meeting energy needs.
 Instead, the knowledge gained  from research on
 engineering performance or environmental prob-
 lems is used  in specific project decisions, with
 review and comparison focused on narrow selec-
 tions of engineering alternatives. For example, past
 procedures only required or  fostered comparisons
 within various program areas (e.g., oil shale pro-
 cessing) rather than assessing the value of several
 supply  alternatives  versus reduction  of demand
 through energy conservation measures.

   At the Hearing and in all of the workshops there
 was an  overriding  consensus that smaller scale
 appropriate technologies using renewable resources
 have not been given adequate evaluation and atten-
 tion when RD&D priorities are set. Criticism of the
 priority-setting process included opinions that:
  the process does not take into consideration alterna-
  tive small-scale technologies when it evaluates a par-
  ticular major system technology. In other words, it does
  not consider other  ways to obtain the energy which is
  proposed for production by the technology under con-
  sideration
and:
  if technological alternatives are not reviewed,  then
  energy conservation possibilities will not be addressed,
  nor will appropriate technologies or other alternatives
  be addressed which might produce  more economically
  the same  amount  of energy as the large-scale tech-
  nologies being considered.
  (Susan  Tachau,  National  Center for Appropriate
  Technology)
  Participants described in detail their belief in the
potential  lower costs  and environmental advan-
tages of such alternatives as solar energy, recycling
and conservation as compared to the technologies
DOE is now emphasizing. They  felt there, is an
urgent need to find better  methods to balance
RD&D efforts and to make that balancing process
known  to the interested  public.  Several  recent
studies contain support for these opinions, empha-
sizing the crucial importance  of conservation and
renewable resources to our energy future.*

  If DOE's priority-setting  processes  are  to be
widely accepted as  giving adequate attention to
energy conservation methods  and environmental
protection,  they should be justified in terms of
explicit comparisons of a broad  range  of alter-
natives.  DOE  should  demonstrate that  it has
thoroughly  considered  production and conserva-
tion, intensive  and appropriate technologies, and
both large-scale centralized and small-scale  decen-
tralized technologies. Further, it  should  be clear
that research priorities  were  established on the
basis of these comparisons.

  There are two specific aspects  of DOE's plan-
ning and  priority-setting in which  the adequacy of
attention  to energy conservation and environmen-
tal  protection could be improved. The first area
concerns  the extent to which energy conservation
was considered in past energy demand forecasting,
and the second concerns an alternative approach
for comparing RD&D opportunities, one which is
based on  energy "end use."
 * Landsberg, Hans, H. et al., Energy, the Next Twenty Years,
   1979; Stobaugh, Robert, and Daniel Yergin, Energy Future,
   1979.
                                                 14

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  The dynamic nature of energy supply and demand
within  the  past  several  years  has  forced  a
mode of policymaking which may overemphasize
the economic  consequences  of supply shortages.
Contributing  to   this  approach  have  been
overestimates of energy demand which have been
derived from  past economic performance.  The
forecasting models do not realistically reflect the
consumer response to unprecedented disruptions in
energy supply  or major changes in energy pricing.
The econometric models are valuable tools, but
they do not have the flexibility necessary to reflect
the continuous response of  social and economic
structures. This is especially relevant in the area of
conservation,  where  recent  energy consumption
patterns have demonstrated  that they can  shift
dramatically  as a  result  of supply  and price
changes.

   A further problem is the fact that models have
not included the potential impact of the capacity of
the economy to turn over or replace  the  capital
stock. Newer technologies tend to be more energy
efficient than the technologies they replace. By the
year 2000, the Nation is likely to replace 35 percent
of existing commercial buildings, 60 percent of exist-
ing industrial  boilers, and virtually all remaining
energy-using devices.*

   The usefulness of formal models, derived from
historic data, decreases significantly as uncertainty
about assumptions and variables increases.  Recent
questions  about the validity of the  relationship
between energy use and economic activity, and the
inability to  accurately predict energy  prices and
resultant consumer behavior, tend to  undermine
any planning system that relies exclusively on tradi-
tional econometric demand predictions.

   Formal  models  can help uncover  counter-intuitive
   results and thus promote  deeper understanding...The
   dilemma of formal models, however, is that the scien-
   tific aura surrounding them encourages those who use
   the results of models to expect much more. And a model
   incorrectly used can do more harm than good. **

   The priority-setting process could be improved if
it included a  comparison of technologies based
on the ultimate "end use" of the energy produced.
  * Based on Statistics from the Bureau of Economic Analysis, U.S.
   Department of Commerce, prepared by TRW Energy Systems
   Group for DOE, Office of Conservation and Solar Energy.

  **Stobaugh, Robert & Daniel Yergin, Eds., Energy Future,
   "Appendix: Limits to Models," p. 262.
Under this  analytic framework  each fuel source
and technology would be compared as to its capacity
to fulfill a specific energy need in the most efficient
and  environmentally beneficial  manner.  As one
witness expressed this:

   the principle is that the 'end use' for which energy is
   required should determine, as  much as possible, the
   resource and form of the energy to be employed for that
   use. The choice should be based on considerations of
   conservation or, in other words, of energy economy.
   This means that preference should always be shown for
   forms of energy that, while remaining compatible with
   the 'end use' to which they are put, are as direct as possi-
   ble, involve as little capital-intensive technology as possible,
   and come, as much as possible, from renewable sources.
   (Susan Tachau,  National Center  for Appropriate
   Technology)

For  example, in residential heating,  rather than
just replacing heating oil with synthetically derived
oil, other alternatives such as passive solar heating,
wood  burning,  and  increased  energy efficiency
through the use of insulation and double-glazed
windows should be considered.
   RECOMMENDATIONS:  DOE  research
   priorities  should  reflect  systematic  and
   explicit comparisons of production and con-
   servation alternatives.

   The comparisons should help establish prior-
   ities  on the basis of energy  efficiency  and
   environmental attributes.

   Methods of analysis, such as energy "end
   use," should supplement econometric models
   which tend to underrate the effects of energy
   conservation.
B.  Purpose of DOE Nonnuclear RD&D
   FINDING: The major barrier to commercial
   use of an energy technology is uncertainty—
   uncertainty  about  environmental  perfor-
   mance, engineering performance, and process
   costs.
  Uncertainty about technical, environmental, and
economic feasibility are  the  principal barriers to
the adoption of new energy technologies. The DOE
                                                  15

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RD&D program has operated under the assump-
tion that a technology demonstration is the way to
reduce  this  uncertainty,  and  that  a successfully
operating prototype with wide-scale dissemination
of information on its characteristics would lead to
commercialization, given appropriate market con-
ditions. Under this assumption, the primary pur-
pose of research and  development  is the opera-
tional demonstration  unit.  DOE's past  RD&D
management system seems to have been built on
this  concept,  that  technologies  can  best  be
developed  through an  orderly progression   of
demonstration projects of ever-increasing size.

  Another approach to RD&D would be specifically
directed toward  identifying and solving  problems
associated with  technology development. As one
witness said:
   whole agency...whose mission it is to build and secon-
   darily to do the best it can with the consequences... You
   need a more balanced situation, where you are setting
   your energy priorities and your environmental priorities
   at the same time and how can we optimize both of these—
   rather than looking for the best energy technologies and
   then later worrying about how to handle the environment..
   (Richard Pratt, Pennsylvania Sierra Club)
Another witness observed:
   I think the need has to be  stressed for experimental
   facilities which test not only  the technological capabil-
   ity, but also the environmental issues.... There's also a
   need to emphasize decisionmaking systems which focus
   on  incremental and adaptive decisionmaking to the
   greatest extent possible, rather than go/no-go decisions,
   so that we can reflect, as we move through various steps,
   the findings of environmental research, assessment, or
   monitoring.
   (Alan Hirsch, Fish and Wildlife Service)
   The most intractible problem with technology develop-
   ment programs is the single-purpose momentum they
   generate to carry each new technology into full commer-
   cial application. Unfortunately,  DOE's management
   system does everything possible to reinforce rather than
   correct  this  fault.  It  is hardware-oriented; it is not
   geared to problem-solving.
   (Kevin Markey, Friends of the Earth)
   Reviewing research programs  in  terms of the
 problems they are trying to solve — that is, the bar-
 riers they are trying to eliminate —  means that
 research would not be justified solely in  terms of
 proving engineering feasibility, but in terms of pro-
 viding  the  solutions to  problems  impeding  the
 development of the industry. If data on engineer-
 ing  performance are critically lacking, this may
 indicate a need for demonstration; but the  problem-
 solving  approach  may  anticipate   and  resolve
 development issues, such as the generation of car-
 cinogenic wastes, that may not be relevant in the
 present design stage. The problem-solving approach
 would make explicit the research required to pro-
 duce information  needed for  engineering and
 environmental protection evaluations.

   Many workshop participants and hearing wit-
 nesses observed  that  technical  and  environmental
 research should be more closely linked  and that
 DOE efforts in  both areas should be designed to
 provide the  greatest amount of data to be used in
 decisionmaking. One witness  stated:
  The   development  of  new  strategies  or
technologies to  produce  or  conserve energy in-
volves  several  major activities: basic  technical
research; research on environmental, social, legal,
or institutional barriers; testing and demonstration
of the technology; and finally, commercial opera-
tion and marketing of the technology. Government
involvement is more appropriate in some of these
activities than  others  given the  constraints,  incen-
tives, and capabilities within the private sector.
Moreover, the private sector is unlikely to conduct
research  into  environmental effects  of energy
technologies, thus this area is particularly appro-
priate for government involvement.  But DOE's
RD&D  program seems to  be  heavily  oriented
toward  rapid  commercialization of technologies
rather than toward thoroughly  testing and exam-
ining all aspects of  their  application,  including
environmental effects. DOE's research goal should
be  directed  toward  providing  data on  technical
readiness, cost, and environmental risks.  As stated
in a recent study:
   The market cannot be expected to provide the right
   amount or kinds of basic scientific research or informa-
   tion gathering, but can ordinarily move ideas from the
   lab to the marketplace at about the right rate. We think
   it is important, therefore, that government policies con-
   centrate on encouraging programs that enhance basic
   knowledge and provide a wide range of competing tech-
   nological concepts that can be evaluated  and, when
   warranted, picked up and applied by the private sector.*
   What you need is a system which is a little more balanced
   between branches that are building things and branches
   that are considering alternatives, rather than having a
* Landsberg, Hans; H. et al., Energy, the Next Twenty Years,
  1979, p. 50.
                                                   16

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  RECOMMENDATION: DOE program and
  project plans should be based on an evalua-
  tion of  the barriers preventing  the  develop-
  ment of  energy technologies  such as  the
  availability of effective environmental control
  technologies. Research should be specifically
  directed toward overcoming these barriers.
C. Project Review Process
  FINDING: In the past, high cost, large-scale
  individual projects appeared to  receive  a
  disproportionate   share   of  senior  DOE
  management attention. Substantial research
  programs such  as  conservation that involve
  numerous small projects  have not received
  senior Department-wide review.
  Many witnesses felt that DOE lacks a project
review process that is sufficiently broad-based and
systematic, and that this has resulted in a bias toward
large technologies. This bias has caused the majority
of  DOE's smaller,  appropriate  technologies to
appear to languish in their development,  even
though their supporters feel that they may be more
cost-effective and their environmental impacts may
be less severe.

  There are approximately 300 nuclear and non-
nuclear DOE-sponsored  technology RD&D proj-
ects now underway. During their development, all
technology  RD&D   projects  progress  through
various  stages  including  basic  research,  pilot,
demonstration,  and commercialization.  At each
stage, projects are reviewed, and a decision is made
to move them forward or to  hold back further
development because of technical, environmental,
or  economic  problems.  The level and type of
review  a project receives  at these key decision
points depends on whether it is designated a "Major
System Acquisition"  (MSA), "major project" or
"project."


  Several criteria are supposed  to be used in
designating MSAs. These  are: national  urgency,
dollar value (government investment in excess of
$50 million in the technology development stage or
$200 million  over the life of the  project),  and
recommendations by the Assistant Secretaries or
the Director  of Energy Research.* To date, cost
has apparently been the major criterion  used in
determining MSAs. Criteria for designation of a
"major  project"  include  total  estimated  cost,
importance   to  program  objectives,  size  and
complexity,   visibility,   degree  of  DOE  control
required,  clarity/stability,  and recommendations
by one of the DOE Assistant Secretaries or Director
of Energy Research.** All  others are classified as
"projects."

  In the past, the process that guided DOE project-
level review  (the PPMS) was  directed  primarily
toward Major  System Acquisitions.  MSAs were
formally reviewed at key decision points  in their
development  by DOE senior management includ-
ing the Under Secretary and Assistant Secretaries
(the Energy Systems Acquisition Advisory Board)
and considerable documentation was required.

  Major projects and other projects were reviewed
by the Program Office and the responsible Assis-
tant Secretary  or  Director of Energy Research.
Specific requirements for these projects were not
clear within PPMS; with the newly proposed Project
Management  System, management review  require-
ments covering MSAs are to be expanded to include
all major projects.

  Focusing senior management attention on  a few
large   projects  has  several  implications.  Since
periodic consideration of MSAs has been required
of  senior DOE officials,  many  participants  in
workshops and hearings felt that large technologies
seem to acquire considerable support and momen-
tum as they proceed through the various develop-
ment stages and it appears that few are held back,
even those with adverse environmental impacts.
Participants  felt  that  if top  DOE management
reviewed a wider range of technologies during the
various development stages, small, environmentally
benign  technologies would receive  more  DOE
emphasis. One witness  contended that:

  The complex procedures which were established by DOE
  to guide technology expenditures, the PPMS, appear to
  fail to provide for adequate  evaluation of alternative
  actions on programs....By the time that DOE staff has
  committed large amounts of time and financial resources to
  the particular project...it is almost too late to adequately
  address alternatives in an EIS.
  (Merilyn Reeves,  League  of Women  Voters   of
  Maryland)
 * Department of Energy, Major System Acquisitions. (Order
  5700.1). September 11, 1978.
** Department of Energy, Project Management Study
  (DESM 79-1).
                                                17

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  Another implication of the DOE project review
system's focus on Major System Acquisitions is that
not all projects with potentially severe environmental
impacts receive comprehensive senior management
review. The cost of a project does not necessarily
reflect severity  of its  potential  environmental
impacts.  For instance, under PPMS, no oil shale
projects were designated as MSAs, however, some oil
shale technologies  were specifically noted in  the
Environmental Readiness Document as having a
high likelihood of severe environmental impacts.

  The purpose of management review is to assure the
quality of projects and programs through examina-
tion of technical capabilities, project engineering
and environmental plans,   cost  estimates,  and
other factors.  With the emphasis that has been
placed on a few individual  projects by past DOE
management systems,  senior management atten-
tion has been diverted from broader reviews, which
could include these major projects and those pro-
grams which are composed of many small projects
such as energy conservation. Major projects which
involve significant  costs must, of course, receive
substantial scrutiny. However, alternative manage-
ment systems  can be used to assure that all major
expenditures receive appropriate review—whether
they are associated with  a  single facility or with
program areas. If the review process is expanded to
include both major projects and major programs,
it could generate the information needed for cross-
technology comparisons.
  RECOMMENDATIONS:  DOE  should
  develop a balanced and comprehensive man-
  agement review  process that includes  such
  programs as energy conservation.

  The potential severity of environmental impact
  should  be included as a factor in selecting
  projects for senior management review.
  D. Evaluation Criteria for
     Technology Development
    FINDING:  It is unclear what formal envi-
    ronmental criteria, if any, DOE uses as a basis
    for its policy and project management deci-
    sions.
     To date, DOE appears to have used three
  specific  criteria in evaluating  environmental
  concerns:

 •  Comparisons of pollutant emissions per unit of
    energy produced;

 •  Estimation  of the  dollar  cost  of  meeting
    present environmental  standards  per unit  of
    energy produced; and

 •  Estimation  of the probability that  adverse
    environmental impacts  will ultimately rule out
    commercialization of an energy technology.

  These criteria are generally included in a number
of DOE documents  that assess potential environ-
mental effects of specific technologies. However, it
is not clear if these criteria are used consistently or
how these  factors have affected DOE decisions.

  Workshop  participants  and Hearing witnesses
suspected that environmental criteria, even though
they may exist, are not given sufficient weight in
decisionmaking. As one Hearing witness commented:

  Absence of explicit criteria gives the appearance, if not
  the reality, that decisions are arbitrary.
  (Mark  McClellan, Pennsylvania  Citizen's Advisory
  Council)

Another stated that:

  The  process  of  evaluating  competitive  technologies
  requires explicit criteria which should include risk evalua-
  tion,  potential  for  environmental  degradation,
  aesthetics  and social concerns, and one aspect so often
  overlooked—the worldwide consequences of developing
  a technology. The obvious criteria include impacts on
  air, land, water and the biosphere. The changes brought
  about in these resources must then be evaluated in terms
  of how they affect man. In this analysis, it is not only
  direct health effects that are of importance, but also the
  impact on those values that  are often impossible to
  quantify,  but are so important, such as the aesthetic
  impacts of  changes and the  recreational values of
  the environment.
  (Gordon MacDonald, The MITRE Corporation)

  The  use  of explicit criteria, applied consistently
to different technologies,  would  ensure that the
environmental problems associated with individual
projects could be evaluated on a common  basis.
However, under PPMS, the project review system
was  designed to provide  a framework  only  for
approval or disapproval of individual projects; it
did not permit environmental criteria to be used to
advocate   those  technologies  which  are  most
environmentally preferable.
                                                 18

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  Some of the hearing witnesses commented on the
scientific  uncertainty  in environmental impact
assessment. These scientists pointed out that there
are important limitations in the present capability
of state-of-the-art methodologies to precisely define
the environmental or public health impacts of pro-
posed  technologies.  Nevertheless, they  concluded
that consistent and systematic comparisons can be
made that will demonstrate the  relative environ-
mental advantages of energy technology alternatives.
Just as importantly,  these  methods  can indicate
where judgments cannot be made regarding the
environmental differences between technologies.

   Witnesses agreed that environmental evaluations
are needed for  a number of impacts—a "single
figure of merit" for environmental or public health
concerns is inappropriate. Although it is very dif-
ficult to  develop quantitative measures for each
area of environmental or health impact, it impossible
to develop assessment methodologies  that allow
some  technology comparisons.  In  the  area of
public or environmental health, for example, emis-
sions of classes of pollutants can be compared. In
addition, cancer risk assessments can be made
 from the results of chemical analysis  or biological
testing.

   RECOMMENDATIONS: DOE should develop
   explicit environmental criteria for use in for-
   mulating  energy  policy  and  evaluating
   technology development, and submit those
   criteria for public and peer review.

   The  criteria  should be quantitative whenever
   possible in order to facilitate cross-technology
   comparisons.  To  support this quantification,
   standard  assessment  procedures  (protocols)
   should  be  prescribed  to  ensure  uniform
   results. The criteria should include the follow-
   ing areas:

  • Impacts on public and occupational health and
    safety;

  • Impacts on ecosystems;

  • Resources  (land  and   water)  required  for
    technology production;

  • Socioeconomic impacts (e.g., the  social and
    economic dislocations caused when a "boom
    town" grows up near a plant site in a previously
    rural area);
 • Global impacts (e.g., carbon dioxide buildup in
   the atmosphere causing a "greenhouse effect,"
   acid rain); and

 • Net energy  analysis (e.g.,  comparisons made
   between energy  produced  by  burning  or
   decomposing urban waste and the amount of
   energy required to produce new products such
   as paper which are  lost to recycling when used
   to produce energy).

E. Resolution of Environmental  Issues
   at the National, Regional, and
   Local Levels

  FINDING-Resolution of Environmental Issues:
  DOE does not designate responsibility for
  resolving various levels of environmental con-
  cerns  asssociated  with   energy  technology
  development.

  The types of environmental concerns associated
with a technology range from site-specific impacts
of particular projects to national and global con-
cerns such as basic health effects of pollutants or
carbon dioxide build-up in the atmosphere. Deci-
sions  on  the  environmental  acceptability  of a
technology  require  environmental  research  and
analysis covering  the  whole  range of  impacts.

  The development of an energy technology from
its early research stage through its commercializa-
tion stage usually requires that associated environ-
mental concerns be addressed at three levels:

  •  Site-specific concerns  —  Including environ-
    mental questions associated with the construc-
    tion of an energy facility, such  as site-specific
    pollution impacts (e.g., ground water contam-
    ination), resource requirements (e.g., water or
    land), and socio-economic impacts (e.g., boom
    town effects).

  •  Regional or cumulative concerns — Including
    site-specific pollution or resource requirements
    affecting areas beyond the immediate vicinity
    of a facility, such as water rights questions.
    Problems may also result from cumulative effects
    of several facilities located in a given region.

  •  National concerns — Including health effects,
    global effects of widespread  implementation of
    a  technology, and the  development of appro-
    priate environmental control technologies.
                                                  19

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  For the environmental concerns associated with
a technology to be addressed adequately, potential
environmental problems at all three levels should
be clearly identified and treated in a timely manner.

  At present, the DOE management process does
not  ensure  that  regional and local concerns  are
identified or that  responsibility for  analysis of
regional and site-specific effects is clearly defined.
This means, for example, that a national research
program designed to develop generic information
on water requirements of synthetic fuels may appear
totally unresponsive to local  concerns for stream
flow depletion by water use at individually proposed
pilot plants. As one witness said:

  DOE  has spent millions studying the Geysers. We're
  practically  an annuity for the National Labs. But  our
  local  government still  doesn't have  the basic envi-
  ronmental  and economic information we need in  the
  form we can use. We tend to think it might be because
  no one ever came to us and asked us.
  (Mary Jadiker, Lake County,  California, Planning
  Commission)

Further, although extensive environmental impact
statements may be prepared for specific projects,
their formal role in the project review process has
not been clarified.

  Unless DOE recognizes the importance of deal-
ing separately with interests at the local, regional,
and national level,  it will  continue  to  appear
unresponsive. Although an  environmental  issue
may cut across all levels, its resolution may best be
undertaken by the level that  is affected. DOE's
credibility would be significantly enhanced if  the
local level is actively  involved in identifying and
dealing with these issues.

  RECOMMENDATIONS: DOE should clearly
  assign  organizational research  responsibility
  for resolving  issues at  local, regional, and
  national levels. Further,  DOE should provide
  management attention to ensure progress in
  resolving issues at each level.

  DOE's management should allocate resources
  for research  on local, regional, and national
  environmental problems and encourage effective
  information exchange.
  FINDING-Resolution of Environmental Issues:
  DOE does not have a mechanism for system-
  atically coordinating plans for RD&D proj-
  ects with appropriate State and local agencies.
   The role of State and local agencies in DOE deci-
 sions  concerning RD&D projects has  not been
 clearly defined.  Although these  agencies have
 responsibility for permitting and enforcing various
 regulations, DOE has not institutionalized  a  pro-
 cedure for involving them in early project decisions,
 such as siting.  This can  lead to  serious conflicts
 and delays later in the process. The views of many
 local officials were  summarized  as follows by one
 Hearing witness:

   We're the ones who see, hear, smell, pay for, or benefit
   from your  'go* decisions.  Obviously, we feel those
   ultimate decisions must be made at the local level.
   (Mary Jadiker,  Lake County,  California,  Planning
   Commission)

   Failure to resolve local concerns can create enor-
 mous  barriers to RD&D  projects. For example,
 DOE is planning to construct a $140 million 50 Mw
 geothermal demonstration  plant in  the  Valles
 Caldera of New Mexico. This is the largest geother-
 mal demonstration plant DOE has under contract.
 Only 50 percent of the funds for the plant  are,
 however,  federally  sponsored, with the balance
 coming from  the Union Oil Corporation and the
 Public Service Company of New Mexico.  DOE had
 expected to start construction of the plant in the
 spring of 1980 on a small section of privately owned
 land called the Baca Ranch and to start, in 1982,
 a  3-year demonstration of the  plant.  However,
 plans  for  construction  of  the  plant are being
 delayed because of  several factors, including the
 unacceptability of the draft Environmental Impact
 Statement. Specifically, the draft EIS  has been
 criticized by local Indian tribes because of its lack
 of analyses of both the  adverse effects on Indian
religious practices and mitigating measures to off-
 set these  effects. For  the final  EIS, DOE  has
prepared a specific section on  Indian issues. That
section has been circulated  for comment to affected
tribes.

  In contrast to this experience,  by providing a
 process which coordinates activities of  all relevant
 agencies, the time and resources of all those con-
 cerned can be concentrated on generating the data
 needed to make the necessary critical environmen-
 tal decisions. For example, in an effort to involve
 and coordinate participation of agencies in a coopera-
 tive  scheduling procedure, the State of Colorado
 has  established a   "Joint Review   Process."*
 * State of Colorado, Department of Natural Resources, Project
  Status Report on the Joint Review Process. November 1979.
                                                 20

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Developed by the Department of Natural Resources
with  support  from  DOE,  it  is  designed  to
streamline the process of review and approval of
projects and the granting of permits. It provides a
"one-window"  coordination   forum  regarding
regulations, evaluation criteria, and public involve-
ment. One agency at each governmental  level is
designated as  the lead  agency  for its level, and
represents the interests of its sister Federal, State,
or local agencies at project review sessions.

  The  Joint Review  process was designated to
bring an  organized  and  rational approach  to  the
review  and decisionmaking procedures necessary
for development of major energy resources. This
voluntary intergovernmental  review  procedure
coordinates  local,  State,  and Federal regulatory
reviews and provides the public with additional
opportunities to become involved in all phases of
project planning and review.

  According to the State of Colorado, the advan-
tages of this are two-fold: first, the decisionmaking
timeframe can be cut  by 40 percent by timely and
precise scheduling of all permitting and regulatory
procedures.  Second,  public  involvement  begins
early in the process with public information and
outreach  followed by  opportunities for expression
of concerns,  discussions of issues, and incorporation
of responsible criticism. This allows for meaningful
public  participation 2 years ahead  of mandated
public hearings. As stated by its supporters, the
process "provides adversaries with the same data,
and keeps them talking" while promoting government
"by cooperation and compromise."
   RECOMMENDATION:  DOE   should
   encourage the involvement of State and local
   agencies in  the resolution of environmental
   issues associated with projects affecting their
   jurisdictions. Joint review processes can both
   expedite and improve environmental review.
 F.  Public Participation in Nonnuclear RD&D
   FINDING-Public  Participation: DOE  does
   not provide effective opportunities for public
   participation  in  decisions  regarding  non-
   nuclear RD&D.
  DOE, particularly the Assistant Secretary for
Environment, has taken measures to increase the
attention paid to public participation. In spite of
these recent steps, one of the major themes to
emerge from the workshops and National Hearing
was that public involvement in DOE's management
and decisionmaking systems has been woefully in-
adequate. Participants  expressed  a deep sense of
frustration  based  on their perception  that  DOE
officials do not  feel accountable to the public for
their decisions.

  DOE procedures do  not systematically involve
the public,  except  as mandated by the National
Environmental Policy Act (NEPA) process. The
public is not given an opportunity to review  or
comment on the documents associated with DOE's
internal  environmental assessments.   Since  the
NEPA process is not initiated until a later stage of
technology development, these internal documents
provide the only environmental information  for
early decisions. As  a result, the public is hindered
in its participation in these decisions. Participants
in the  workshops  and  Hearing  noted that this
often results in delays  when  the  construction  of
facilities is  proposed. They emphasized that in-
viting  public involvement earlier  in the process
would facilitate identification of  issues and  the
resolution of conflicts, thus expediting the process.
As one participant summarized this problem:
  The purpose of effective citizen action is not to subvert
  [Government's] responsibilities, but to make sure they
  are honored. Government and industry have experts,
  but citizen organizations often have their own expertise
  to contribute to environmental decisionmaking. More-
  over, although environmental decisionmaking must be
  based on the best available scientific and technological
  information, value judgments and social decisions are
  ultimately required. And these social decisions must
  reflect the public  will, for the environment belongs to
  the public, not just to the experts in a particular deci-
  sion. When risks must be measured against benefits, or
  when economic and environmental values must be
  weighed and balanced, the public has the right and the
  obligation to make its  views known. Mediating dif-
  ferences between  citizens and Government early in the
  planning process  can prevent confrontation at a later
  date, and can also prevent subsequent distrust of the
  Government on the part of the citizenry.
  (Edith Chase, League of Women Voters)


  Participants stressed the  need for an  "advocate"
within DOE to increase opportunities for meaning-
ful public participation at appropriate points in the
nonnuclear RD&D decisionmaking process. They
felt that most  DOE officials  concentrate on the
scientific aspects of projects and do not view public
                                                  21

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participation as a high priority. Establishment of
an  advocate for public participation within the
Department would demonstrate a commitment to
institutionalizing a program of public participa-
tion. One witness outlined the role of a Public Par-
ticipation Advisor, based on a similar position in
the State of California, that could serve as a model.
This advisor:
    "initiates  and  monitors  aggressive outreach
    programs;

    ensures opportunities  for full and adequate
    participation by all interested groups and the
    public at large;

    advises groups and the public as to effective
    ways of participating in the Department's pro-
    cesses; and

    reviews, monitors, and assists in implementing
    public participation plans  and activities in all
    DOE  offices."
    (Michael Paparian, California Sierra Club)
 In DOE, this Advisor should report directly to the
 Secretary,  as do the public affairs and Congres-
 sional liaison advisors, and would be responsible
 for ensuring adequate public participation oppor-
 tunities. In general, the position would differ from
 existing organizational  entities  in its  access  to
 the Secretary and in its role as advocate of public
 participation in decisionmaking.
   Another mechanism that could be used to ensure
that public participation opportunities are institu-
tionalized within  DOE is the recently  published
Citizen Participation Manual. This document pro-
vides guidance  on  planning, implementing, and
assessing public awareness and  participation pro-
grams. DOE senior officials should strongly support
implementation of  the Manual,  and the  Public
Participation  Advisor, if appointed, should be
charged with monitoring its application.
  RECOMMENDATIONS: DOE should  sys-
  tematically involve the public in a timely and
  meaningful manner in consideration of the
  environmental aspects of policy development,
  program planning, and project management.
   Senior management attention should be com-
   mitted to institutionalizing public participation
   activities.
   FINDING-Public  Participation:   Existing
   public participation mechanisms do not ensure
   balanced representation of views, or representa-
   tion of a broad spectrum of individuals and
   organizations.


   The Federal Advisory Committee Act (Public
Law 92-463) states that legislation to establish an
advisory committee shall "require the membership
of the committee to be fairly balanced in terms of
points of  view  represented"  (Section  5[b][2]).
Many members of the public  believed that this
philosophy should  also apply  to other  public
involvement  activities,  and  that  DOE  should
encourage participation by as many interested groups
and individuals as is feasible in workshops, Hearings,
and other events.  NEPA requirements for public
involvement  (Section   1506.6)  also  support the
concept of participation by all interested parties.

   Some  participants stated that DOE does not
design  its   public participation  activities  to
encourage broad representation of  diverse views.
Some  believed  that well-funded  public-interest
organizations,  industry, and recognized  profes-
sionals  in  scientific  fields  tend  to  be  over-
represented.  A recent  study by Common Cause
investigated the membership balance of  14 DOE
Advisory Committees that existed during 1977 and
1978. The study found  that

   industry was represented on DOE Advisory Committees
   6 times as often as public, intergovernmental, or education
   representatives. If  the Consumer Affairs and  Energy
   Extension  Service  Advisory Committees...are  not
   included, the ratio of industry to public representatives
   on the other twelve is 15:1.*

   Further,  workshop   participants  asserted  that
DOE review  panel membership was too narrowly
composed. Many members of the public are well
acquainted with the technical and environmental
aspects of proposed projects, and participants felt
that representatives of this informed public should
be included on review panels in addition to profes-
sional scientists to ensure that environmental con-
cerns have been identified and adequately addressed.
   Open for Business Only?, A Common Cause Study of the
   Department of Energy, February 1979, page 18.
                                                 22

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  There are often complaints from Federal offi-
cials  that  there  are  opportunities  for. public
participation but' that interest and attendance are
poor. DOE should have an independent third party
review of the extent  to  which interested groups
attended DOE-sponsored events,  and the reasons
for nonattendance.

  In order to assure that groups which are not well
funded do not have difficulty participating in the
public programs offered, DOE should make funding
available. When necessary, there  should be reim-
bursement for travel and  per  diem  expenses to
enable witnesses to testify at hearings, participants
to  attend workshops and conferences,  and local
project-related commissions and boards to sponsor
forums and disseminate information.
  Finally,  much  frustration  was  expressed
throughout the Hearing and workshops about the
fact  that it is  extremely  difficult to locate  the
appropriate source or the individual who can pro-
vide  information because the  data are  scattered
throughout DOE offices. By establishing a toll-free
telephone number with a good information back-
up system, DOE could provide an easily accessible
central  source  through which the public could
request  and obtain materials,  and "get answers
to questions."
  RECOMMENDATION:  DOE should  im-
  prove its efforts to provide the public with the
  information necessary to understand and effec-
  tively  comment  on   environmental  issues
  related to energy development.
   RECOMMENDATION: DOE should actively
   support efforts to assure a broader represen-
   tation of public views in its nonnuclear RD&D
   decisionmaking processes.


   FINDING-Public Participation: The amount
   and  quality  of  information  DOE makes
   available to the public is inadequate.
   Information is crucial to responsible, meaningful
 public participation.  Workshop participants and
 hearing witnesses cited a number of shortcomings
 in  DOE's public  information activities.  Partici-
 pants alleged that important  internal documents
 such as  Environmental  Development Plans and
 Environmental  Readiness  Documents   are not
 systematically disseminated, and that documents
 that are supposed to be available upon request are
 difficult, if not impossible, to obtain. They said the
 materials that are distributed are frequently highly
 technical and  laden with  bureaucratic  jargon.
 What is needed are summaries of all major decision
 documents,  written  clearly,  concisely,  and  in
 language that  can be  understood by  the 'lay'
 public.

 Another summary document requested by several
 participants was  an annual review of  all DOE-
 supported technologies,  explaining briefly each
 technology and its development status, its potential
 for  meeting energy needs,  its  energy  efficiency
 and economy, and any possible drawbacks and
 constraints to its use.
  FINDING-Public Participation: The Envi-
  ronmental  Advisory Committee (EAC) has
  not  been  integrated  into  DOE  decision-
  making.
  The EAC was established to provide advice and
recommendations to the Secretary, through the
Assistant  Secretary  for the  Environment,  on
policies that affect the environment and the safety
of the general public. However, after four quarterly
meetings, the EAC has not yet developed a clear
vision of its role.  Neither the Department nor the
Committee has well-defined expectations of the
other.

  There is a strong feeling among EAC members
that they are  "information receivers" rather than
"advice givers." Effective, regular methods for the
EAC  to communicate its views to the Secretary or
other  senior  department officials have not been
developed;  the EAC  rarely finds  itself talking
directly to  policymakers, but  talks primarily to
support staff. Consequently, its members believe
that the EAC has little impact on policy.

  An active, assertive role and structure for a DOE
advisory group can be seen in  the  functioning of
the DOE Energy Research Advisory Board (ERAB).
The purpose  of the Board is to provide DOE top
management  with long term guidance on overall
research and  development,  and to  serve  as a link
between the technical community and DOE. The
                                                23

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seemingly successful integration and implementa-
tion of ERAB's recommendations are based on:

 •  the  structure  of the advisory  process  — a
    contract-like procedure for becoming involved
    in an issue through the use of agreed-upon
    "terms of reference"  entered  into with  the
    requesting program office;

 •  the commitment of top DOE management to
    respond to their findings;

 •  the  nature and stature of its membership —
    primarily top business, industry, and research-
    oriented university officials who historically
    have had an "ear" at DOE.

  In order to strengthen the EAC, it is necessary to
tie  its functions more directly to decisionmaking.
This can be done by establishing a number of issue-
and program-oriented task forces (supplemented
by  nonmember  talent)  to  study and provide
recommendations on specific environmental con-
cerns. Regular meetings of the EAC should be set
up with the Secretary, the Assistant Secretary for
Environment, and other policy officials in atten-
dance, to provide the forum EAC needs for its
recommendations.

  The Office of Environment has recognized  the
problems experienced by the EAC and commis-
sioned a study of the Committee's first year of
operation. This is an indication of the Office of
Environment's  interest in enhancing the  effec-
tiveness of  this  Committee, and  may lead to
improvements  in many of  the  areas discussed
above.
  RECOMMENDATION: DOE should clarify
  the role of the Environmental Advisory Com-
  mittee and link its functions more directly to
  Departmental decisionmaking activities.
                                              24

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APPENDICES

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APPENDIX A
REGIONAL WORKSHOP SUMMARIES
Background

   The  regional  workshops—held  in  Atlanta,
Denver, San Francisco and Pittsburgh, during July
1979—were intended to give EPA initial feedback
on participants' perceptions of DOE's RD&D deci-
sionmaking process, and to encourage participants
to begin preparing testimony for the October Na-
tional  Hearing.  Specifically, the  goals of  the
workshops were to:

  • Present an overview of the research, develop-
    ment,  and demonstration (RD&D) process.

  • Obtain from participants their opinions about
    "the adequacy of attention" this process gives
    to environmental issues, and opportunities for
    public participation in the process.

  • Present a report on the decisionmaking process
    as applied to one or two specific technologies.

  • Discuss with  participants their  views of the
    future development of these technologies and
    their recommendations for public participation
    in the  process.

   To accomplish these goals, a one-day workshop
 was designed which included both presentations of
 information and opportunities for discussion. The
 morning session focused on the formal DOE non-
 nuclear RD&D planning  and review process for
 Major System Acquisitions (especially the Program
 and Project Management  System),* and the after-
 noon session was devoted to discussion of the DOE
 process as  applied   to   specific  technologies.
 Materials describing the process and its application
 to the specific technologies were mailed to partici-
 pants prior to the workshop.**

  * This System is described in Chapter II of this report.
 ** Environmental Protection Agency, The Federal Nonnuclear
   Research and Development Act (Public Law 93-577), Section 11,
   Environmental Evaluation, EPA 600/9-79-020, June 1979.
   Environmental Protection Agency, Issue Paper on Urban Waste
   and Cogeneration Technologies, July 12, 1979.
   Environmental Protection Agency, Issue Paper on Oil Shale
   Technologies,  July 18, 1979.
   Environmental Protection Agency, Issue Paper on Coal
   Liquefaction (Solvent Refined Coal) Coal Gasification (Oasifiers
   in Industry) Technologies, July 31, 1979.
  Each session began with a brief presentation of
highlights of  these  materials. Participants  were
then  divided   into  small,  heterogeneous  work
groups  which were  given  a list of questions to
guide, but not limit, their discussion. The morning
session focused on the following issues:

 •  What specific environmental factors should be
    considered prior to DOE decisions?

 •  Is the DOE process  sufficient for addressing
    the  environmental   problems  of  individual
    energy technologies?

 «  What role should the  public play in the process?

  In  the afternoon, work groups considered the
following questions for the  technologies under
consideration:

 •  What are the environmental concerns about the
    impact of the development of the technologies?
    Have DOE processes  successfully identified
    and dealt with these concerns?
 •  Has DOE disseminated information about the
    technologies widely enough? What has been
    the involvement of the  public and State and
    local governments  in the development of this
    technology?

  The groups were not expected to reach a consensus,
although there was a surprising agreement on many
questions.

  Each work group chose a spokesperson to present
its  comments  to the entire workshop. The partici-
pants and EPA staff then had an opportunity to
discuss the questions, concerns, and recommendations
developed by the work groups.

  The workshop concluded with a brief discussion
of  the October National Hearing and an open
discussion of other issues or unanswered questions.

  Approximately 200  people attended the  four
workshops.  They represented a wide range  of
organizations and  interests,  including industry,
labor, environmental and public interest groups,
universities and research organizations, and State
and local governments.
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ATLANTA WORKSHOP SUMMARY

  The first regional Section 11 workshop was held
in Atlanta, Georgia, on  July  12,  1979, at the
Peachtree Plaza Hotel. This workshop focused on
the DOE nonnuclear RD&D planning and assess-
ment process  and on  two specific technologies,
urban waste utilization and cogeneration.

  Invitations to participate in the workshop were
sent to 250 individuals, and fifty-five active par-
ticipants  and  several  Government  and  other
observers attended the workshop. The group was
composed  of  representatives of industry (29%),
environmental  groups  (21%),   State and  local
governments (16%), public interest groups (11%),
offices of U.S. Representatives and Senators (9%),
universities (7%), and other groups (7%).
The DOE Environmental Planning and
Assessment Process
  During the morning session's discussion of the
Program and Project Management System, skep-
ticism was expressed about the extent to which the
actual decisionmaking process follows the formal
design.  Some  participants felt that if the system
does  in fact adhere closely to its design, it was
unnecessarily  complex and costly, and  that  its
extensive documentation did not necessarily ensure
that a comprehensive management  review did occur
and that  environmental concerns would  be con-
sidered at appropriate points. In particular, separa-
tion of technology development and environmental
research into  two "tracks" covered by  separate
plans (Technology Program Plan and Environmental
Development Plan) and managed by separate offices
(Program Office and Office of the Environment) was
viewed as having both positive and negative aspects
from  the environmental perspective.
cost, poor coordination of environmental and tech-
nology research efforts, and, ultimately, a lack of
attention to environmental issues in planning and
at key decision points.

  Participants  questioned  whether  the Energy
Systems Acquisition Advisory Board had specific
criteria  governing its  deliberations, review  of
documents, and recommendations about the readi-
ness of a technology to move forward to a further
phase of development.  There was a general  agree-
ment that such criteria should  exist, particularly
for  evaluation  of the  Environmental  Readiness
Document, and should be made public. Among the
environmental criteria  suggested were traditional
environmental  concerns  (effects  on water, air,
land, wildlife, vegetation) and  the  broader eco-
nomic, human,  and social effects of a technology.

  Timing of environmental research was viewed as
important by several work groups. They felt that
relevant  environmental research should  be per-
formed as early as is feasible in the process, before
major capital investments have been made in a
technology.  Several  participants  questioned
whether there is a point beyond which it is virtually
impossible to halt the development of a tech-
nology, regardless of the findings of environmental
research.

  Finally, several participants expressed the view
that this process reflects  DOE's overemphasis on
large high-cost,  high-technology projects.  These
participants felt  strongly that  DOE tended  to
overlook  lower-cost,  decentralized,  appropriate
technology  systems  in their RD&D programs.
Thus,  potentially  cost-effective  technological
approaches might be lost early in their developmental
process. In particular, several participants expressed
dissatisfaction that solar technologies had not been
emphasized more by DOE and in these workshops.
  On the positive side, participation by the Office
of Environment should ensure that environmental
concerns will not get lost or ignored in the interest
of development. In fact, some participants felt that
Office of Environment responsibility  should  be
expanded  to include not only  review but also
preparation  of NEPA  documentation (Environ-
mental  Assessments and  Environmental Impact
Statements)  which is now performed by the Pro-
gram Office. On the other hand, separation  of
responsibility into two Offices could lead to  extra
Public Participation in the Process

  Work group reports indicated general consensus
that public involvement in the Program and Project
Management System was inadequate. Representa-
tives  of environmental  groups,  public  interest
groups, and industry stated that they did not have
adequate information or channels  of access for
systematic  involvement.  Many  participants felt
that the public should be brought into the process
earlier — by the time the public has an opportunity
                                               28

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to participate, primarily through review of Envi-
ronmental Assessments and Environmental Impact
Statements, it is too late for their opinions to affect
many important decisions.

  Two factors were presented as crucial for achiev-
ing effective public participation in the process:
better dissemination of information and some level
of funding support. In citing the need for more
information, participants said that the public fre-
quently does not  know that  decisions are being
made, the nature of the decisions, and the options
available. Two  reasons  for this were suggested:
first, most relevant documents are  not made
available for public review, and second, materials
made available  do not clearly outline the  nature
and effect  of decisions to be made. There is need
for  "translation"  of documents, decisions,  and
procedures  so  that interested  members  of  the
public  can  understand  them. Summaries   of
materials,  with  a  minimum  of bureaucratic and
technical jargon, would be helpful in this process.

   One group praised the efforts of DOE's Office
of Consumer Affairs in responding to requests for
information.

   The second requirement for sustained  public
participation  cited by  several work  groups was
funding to support such efforts. It was agreed that
this funding should not be confined to any one
group or interest,  but  a method for apportioning
money  among interested groups and  individuals
was not presented.

   Several specific  mechanisms  for involving  the
public in the process were suggested. First,  several
work groups recommended  public involvement
with the  Energy  Systems Acquisition Advisory
Board. Some suggested that the public should be
represented on the Board;  others felt that an out-
side public review board  should be  established.
This public review board should actually meet and
discuss issues, not just review written materials and
submit written comments. No method for electing
public representatives for the ESAAB or an outside
board was  suggested.

   It was generally agreed that the EPA Section 11
regional workshops are a good idea and should be
continued.  Some  participants  felt   that local
workshops would be helpful as well, although they
recognized that the cost would be prohibitive.
  Many  participants  noted  that  one  potential
effect of public participation was to slow down the
process. This could be a distinct drawback, since
many beneficial projects could be delayed. On the
other hand, early public involvement could enable
DOE to anticipate and deal with issues as research
progresses, thus avoiding lengthy delays later on.

  Finally, the groups discussed who should be
included in public participation activities. The major
question they considered was whether the general
public should be involved, or whether systematic
involvement should focus on  the  "informed"
public. Although broad participation was felt by
many to  be ideal,  several groups concluded that
major efforts to involve the general public might be
too costly and the return too small. While no one
should be excluded from public meetings, it was
most important to involve the "informed" public.
Environmental Concerns in Urban Waste
Utilization and Cogeneration
Technologies

  The workshop in Atlanta focused on these two
technologies  for  several  reasons.  These
technologies  have  the  potential  to  contribute
significantly to energy conservation programs in
the United States and were 2 of 16 technologies
selected  by the DOE Commercialization Task
Force for development and promotion. Further, a
number   of  privately  developed and  DOE-
supported facilities are operating in this region.

  A  major theme in the discussion  of these
technologies was a need for DOE to adopt a less
rigid stance, and to allow for more diversity. Many
participants felt that the present system is focused
only  on a  few  high-cost, high-technology pro-
grams,   and  that  smaller  scale,  appropriate
technology projects were not adequately encouraged.
In the same vein, some participants felt that DOE
should put more effort into promoting  conserva-
tion in addition to supporting energy production.

  In the area of urban waste utilization, one group
felt that DOE should concentrate on recycling and
bioconversion rather  than combustion  technol-
ogies.  Combustion was viewed as a short term
solution only; it was felt that the other  two offer
more long term benefits. Most of the groups men-
tioned recycling as an important program. Partici-
pants emphasized that successful recycling efforts
                                                29

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could not  depend on volunteers. In  almost all
volunteer projects, initial interest and enthusiasm
eventually wanes, and the  project fails.  Funding
must be made available for continued operation, or
recycling should become a regular municipal function.

  Participants felt that if urban waste utilization
technologies are to be developed, source separation
should be encouraged. Most felt that people would
be willing to cooperate with these efforts.

  Many participants  felt that in assessing these and
other technologies, DOE should examine carefully
the total impact of the technology, including its by-
products and  associated expenses. This compre-
hensive and systematic analysis should  encompass
primary and secondary effects on the  traditional
environmental areas  (water, air,  land, vegetation,
wildlife) and an assessment of human and social
effects,  total costs and benefits, and net energy loss
or gain. Participants felt that DOE should be assisted
in this analysis by local community groups, public
interest groups, environmental groups and industry.
Some felt  regional citizens' advisory committees
should be established and meet regularly to discuss
issues affecting their area.
Public Participation in Urban Waste and
Cogeneration RD&D

  Participation was viewed as a two-way process
that would benefit both the  government and the
public. Both the public and DOE have responsibil-
ities for  making participation successful. For the
two technologies studied as well as the whole project
review process,  participants  felt  that  the public
should be more specifically informed in order to
fully participate.
DENVER WORKSHOP SUMMARY
  The second regional Section 11 workshop was
held in Denver, Colorado on July 18,  1979, at the
Environmental Protection Agency Region VIII Office.
This workshop focused on  the DOE nonnuclear
RD&D planning and assessment  process  and on
DOE's  involvement  in  oil  shale  research  and
demonstration.

  Forty-six people attended the workshop, repre-
senting  universities  and  research  organizations
(24%), environmental groups (17%), public interest
groups (13%), State and local government (13%),
industry (6%), and other groups (26%).
The DOE Environmental Planning and
Assessment Process

  During  the  morning  session,  participants
discussed  shortcomings in the way this system
handles environmental research. Most participants
felt that "environmental" factors were defined too
narrowly and  that, in addition to the traditional
concern with air, water,  wildlife,  and vegetation,
environmental  effects research  should  include
health and  safety  issues,  social  and  economic
effects, and net energy questions. They also felt
that cumulative and synergistic effects of several
projects  in  an  area  should be  examined  in  a
regional  or community  Environmental  Impact
Statement. They expressed frustration  with the
existing fragmented approach  to environmental
research and felt that a more comprehensive view
was needed. They were particularly interested in
seeing a greater sensitivity to State and local con-
cerns  and felt strongly that State and local officials
should be included much earlier  in the planning
process.

  As  in the Atlanta workshop,  timing was  an
important issue in  this  discussion. Many par-
ticipants felt that environmental factors should be
considered earlier  in  the process, so that major
environmental issues would be identified prior to
the first major decision. After that, environmental
and technological research should go hand-in-hand.
Participants also felt that  monitoring and updating
of environmental research was crucial, particularly
in terms of social and economic impacts.

  Finally, participants were concerned about the
relative emphasis given to environmental research.
Some felt that the process was too "driven" by the
Program Office. They felt that more interaction
was needed between environmental and technological
research before people take sides and  conflicts
occur. Some felt that it would be more appropriate
for Environmental  Assessments and Environmental
Impact Statements to be prepared by the Office of
Environment rather than by the Program Office.

  In a more general discussion of the Program and
Project Management System, participants said that
                                               30

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a formal system incorporating a uniform accoun-
tability was needed for smaller projects as well as
major systems. Several groups also suggested that
the process should allow for more comparison of
technologies as they are being developed including
conservation and solar technologies.  Several par-
ticipants recommended better coordination between
DOE and EPA to avoid  duplication of  effort
whenever possible. Finally, several groups felt that
criteria and data bases used in the decision process
should be standardized and made public.
Public Participation in the Process

   There was general agreement among the work
 groups that public participation in the process was
 inadequate. One of the major recommendations
 formulated by the groups was earlier, more mean-
 ingful involvement of State and local governments,
 industry,  and  interested  organizations.  Par-
 ticipants felt that these groups should be included
 in planning for projects as soon as siting decisions
 are made and that the role of these groups should
 include shaping project development and preparing
 criteria, not just reaction or review. Active involve-
 ment  in a steering role  of those who could be
 affected by a project would  encourage a com-
 munity's sense of ownership of a project and the
 building of cooperative working relationships.

   Participants  also noted that improvements were
 needed in  DOE's information  dissemination pro-
 cedures. They felt that  internal  environmental
 documents should be  more  readily available  and
 that there  should be a system for public comment
 on all documents,  not just the NEPA materials.
 Further, if public participation is  to be effective
 and meaningful, some participants felt that better
 public education and a central information source
 are also needed. It is difficult for the public to keep
 track of the many small decisions made by various
 agencies and to be aware of when, where, and how
 to attempt to have an impact.

   The work groups agreed that the process should
 be more open and suggested  several means for
 achieving this. In addition to making documents
 more  available,  these included  publishing  the
 recommendations of the Energy System Acquisi-
tion Advisory Board, holding regional conferences
to discuss policy  questions,  and  establishing
regular community  boards for site-specific ques-
tions.  Participants stressed  that effective public
participation requires a sustained effort and some
funding support. One group suggested that a set
proportion of each project's budget be set aside to
support public  participation activities. Another
participant recommended that U.S. Senators and
Representatives should sponsor attendance of peo-
ple from their districts or States at meetings such as
the October National Hearing.

  Finally,   participants  noted  the  potentially
negative aspects of public  participation.  They
warned against any system that would create more
bureaucracy or that would slow the process down
too  much.  No specific  suggestions were  made
about how these pitfalls could be avoided.
Environmental Concerns in Oil Shale RD&D

  In the afternoon, participants focused specifically
on oil shale, and discussed how the DOE process
had  worked  for this technology.  Oil shale  was
selected as the major technology for discussion at
this workshop, because a  large percentage of the
country's highest quality  oil shale resources are
located in this region. One major area of uncertainty
was the effect that President Carter's energy initia-
tives would have on oil shale research and develop-
ment and on the associated environmental research.

  Participants reiterated several themes from the
morning session. They stressed the  need  for  a
holistic view of  "environmental" impacts includ-
ing the human as well as the! natural environment.
Thus, in addition to traditional concerns, they said
that oil shale environmental research should include
long term health effects; impacts on water rights,
particularly   secondary  impacts  caused  by
increases in population due to the projects;  and
positive and negative social and economic effects
resulting from new jobs and increases in population,
such as increased cost  of living,  crime, etc. They
also  mentioned a need for cost-benefit studies on
control technologies to be included under environ-
mental research.

  The participants  said that they did  not  have
enough information to judge whether DOE's envi-
ronmental research process had identified all these
concerns and dealt with them. Several believed that
the concerns had probably been identified but that
solutions had not been developed for all of them,
particularly the  social  and economic problems.
Some felt that this research should be subjected to
a greater degree  of outside peer review.
                                                31

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  Finally, participants repeated their recommenda-
tion  that environmental concerns  be addressed
earlier in the process and that technology research
and  environmental  research  be   more  closely
coordinated.
Public Participation in the
Oil Shale RD&D Process

   There was almost unanimous agreement among
participants that DOE's information dissemination
procedures  had  been  inadequate in  oil  shale
development.  Several  participants  reported  that
they  had  not been  able  to obtain documents
through regular channels. One participant said that
in  order   to  obtain  a specific  Environmental
Readiness  Document,  it  had to  be  "leaked"
to him.

   Another widespread  complaint  was  that
materials  were virtually incomprehensible.  They
requested that summaries of environmental docu-
ments be prepared and that these summaries con-
tain a minimum  of technical and bureaucratic
jargon.

   As in the morning session, participants stressed
the importance of involving appropriate State and
local officials and organizations  in the  planning
phases of oil shale projects. They felt that it was
particularly important that this kind of involve-
ment be incorporated into any new groups and pro-
cesses  developed in response to President Carter's
July energy message. Participants were concerned
that the President's emphasis on oil shale develop-
ment could have highly detrimental effects if environ-
mental issues  were not examined  comprehensively
and with sensitivity to local concerns.
SAN FRANCISCO WORKSHOP SUMMARY
  The third regional Section 11 workshop was held
in San Francisco, California, on July 24,  1979 at
the Environmental  Protection  Agency Region IX
Office. This workshop focused on the DOE non-
nuclear RD&D planning and  assessment  process
and on research and  development of geothermal
technologies.

  Invitations to participate in  the workshop were
sent out by the EPA Regional Office to individuals
and organizations that had been actively involved
in discussion of geothermal projects. Thirty-seven
participants attended  the workshop, representing
State and local government agencies (35%), rele-
vant Federal agencies  such as the Bureau of Land
Management and U.S. Geological Survey  (16%),
research  laboratories  and universities  (13.5%),
environmental groups (8%), and other organizations
and areas of expertise (14%).
The DOE Environmental Planning and
Assessment Process

  The initial reaction of most participants to the
Program and Project Management System during
the morning session was that it is irrelevant to their
experience, since it applies only to projects that
receive very  substantial DOE support. Their expe-
rience  with  geothermal  development and  other
DOE projects had not brought them in contact
with the system. Many felt that this emphasis on
large  projects was too limited and that criteria
other than funding levels should be used in assign-
ing technologies to the process. These criteria could
include breadth of applicability, nationwide poten-
tial, and value to a specific site  or location.  These
criteria should also be  applied to initial decisions
about projects and in setting priorities. Many par-
ticipants felt that the  system  reflected  a DOE
philosophy that is too hardware-oriented, and that
more attention should be given to smaller  scale
technologies and projects.
  In their discussion of how this process deals with
environmental concerns, the work groups had two
general recommendations: "environmental impacts"
should be defined broadly and assessment should
occur very early in the process.  Participants  sug-
gested that there should be an initial assessment for
each geographical area in which a project is being
considered to establish baseline data and  to deter-
mine what environmental factors might be affected.
Several  participants stressed  the importance of
gathering baseline data before a project is initiated,
then regularly monitoring project effects against
this information.

  There was general agreement that a broad range
of potential  impacts should  be considered, in-
cluding traditional elements, social and economic
costs  and  benefits,  land  use  compatibility,
qualitative changes in the resource brought about
                                               32

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by development or occurring naturally, conserva-
tion of the resource, aesthetics, specific needs and
concerns of the local community, and cumulative
effects of more than one project in an area or one
project over time. These environmental issues can
be  broken down  into  those generic  to the
technology and those which are site-specific.

  Participants felt that the process described in the
Program and Project Management System might
be adequate for making generic technology deci-
sions, but  that  it needed major additions to be
appropriate for making site-specific decisions.
These additions would focus on early involvement
of local officials and community groups in plan-
ning and research so that local concerns  could be
brought into the decisionmaking process as soon
as siting decisions are made,  and local  expertise
could be tapped in  conducting research. In this
way, a balance between national goals and local
effects could be achieved. It would also enable DOE
to put its efforts into areas that are of major con-
cern to those affected by a project. One participant
summed up this discussion  by saying that  "DOE
answers questions no one asks and then does not
have information on issues of considerable local
concern."

  Many participants  criticized  the  timing  of
environmental research. They  felt that research to
develop the technology proceeds ahead of environ-
mental  research. They felt  that these two areas
should be more closely coordinated and that DOE
should be  supporting  more research and demon-
stration of control technologies.
 Public Participation in the Process

   As indicated above, there was general agreement
 that  public participation in the process needed
 improvement. Several  specific suggestions were
 made by the work groups, most of which focused
 on better dissemination of information.

   Most of the groups  echoed other workshops'
 conclusions that better information dissemination
 was needed and documents should be made more
 readily  available  for public review. A number of
 participants had attempted to obtain internal DOE
 environmental documents in the past  without suc-
 cess. Public review would require that the public be
 informed of the  existence of the documents,  the
 nature of the documents, and how to obtain them
and submit comments. One group recommended
that DOE establish a Public Advisors Office which
would have responsibility for disseminating infor-
mation  and  answering  questions.  This office
should undertake an aggressive outreach effort to a
wide audience, including industry, State and local
government, environmentalists,  and technical ex-
perts. The group suggested that this program  be
based in the regional  offices  and be coordinated
with State and  local  energy and  environmental
boards or commissions. Crucial to the success  of
such a program in several groups' opinion, was
access to a real person who could answer questions.
It was suggested that a toll-free telephone number
would be helpful.
  Other  mechanisms  were suggested to improve
the public's ability to use available information.
These included a system to make people aware of
past and present research projects, and a newsletter
or  computer  access  system  containing updated
information on the status of projects. Other partic-
ipants said that an understandable document sum-
marizing technologies and projects would be very
useful. These  suggestions grew out of a need ex-
pressed by several participants for DOE not merely
to release the current internal documents to the
public, but also to make an effort to assist readers
in understanding these materials.
Environmental Concerns in Geothermal RD&D

  The workshop in San Francisco focused its after-
noon technology discussion on geothermal energy
because  California's   hydrothermal  resources
account for over 70 percent of the electrical energy
potentially recoverable from such reservoirs in the
U.S.  The largest geothermal power plant in the
world is located at The Geysers in California, and
electricity  will soon be produced  commercially
from  liquid-dominated  reservoirs  in  Southern
California's Imperial Valley. Many of the work-
shop participants had been actively involved in The
Geysers project, through industry,  local govern-
ment, or citizens' action groups. They had discussed
many of the environmental issues surrounding geo-
thermal development in the past, and many con-
flicts had,  over time, been resolved. One partici-
pant from  industry and one community represen-
tative presented a brief overview of their experience
with this project and perspectives on it.
                                                33

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  The major conclusions from the work groups
were  that  environmental research  should begin
earlier in such projects, that more baseline data are
needed  before  development  begins,  and that a
whole-system, coordinated approach  to  environ-
mental research is needed. They questioned how
much environmental research should actually be
conducted before a demonstration begins. Finally,
they said that there was a need for both generic
planning and  study,  and site-specific planning
and study.
Public Participation in Geothermal RD&D


  The experience of the participants with geother-
mal projects led them to conclude that—although
DOE has not been totally  unresponsive, and in
some instances, DOE staff have been very helpful—
there was a lack of systematic public involvement
and information dissemination. This major problem
is exacerbated by the fact that summaries of infor-
mation do not exist.

  A major issue  raised by many participants was
that DOE does not ask local officials and the com-
munity what  they want. There is no systematic
method "for involving  local officials and  citizens
after siting decisions are made. They felt that there
should be  much more  careful  coordination of
Federal, regional, State  and local activities and
clarification of  the roles and  responsibilities of
each  level. During this discussion,  participants
wrestled with difficult questions  concerning the
appropriate role  and scope  of  responsibility for
DOE. They recognized contradictions in some of
their recommendations—asking DOE to take more
responsibility  for  follow-up on environmental
research and long term monitoring while also asking
for greater local autonomy and decentralization of
responsibility.

  DOE's role as  an R&D agency was discussed in
relation to other needs such as long-range planning
and long term support of environmental research.
Questions were raised about DOE's responsibility
for environmental study in the case of private
development,  as  opposed to publicly-supported
projects; and  about the  extent of DOE's respon-
sibility for site-specific studies  in  addition to
generic research on a technology's environmental
effects.
PITTSBURGH WORKSHOP SUMMARY
  The fourth regional Section 11  workshop was
held in Pittsburgh, Pa., on July 31, 1979, at the
Pittsburgh Hilton  Hotel.  This final workshop
focused on the DOE nonnuclear RD&D planning
and  assessment  process  and on two   specific
technologies—coal liquefaction and coal gasification.

  Invitations to participate in the workshop were
sent to 125 individuals; forty-five people attended
the workshop;  representing industry (24%), envi-
ronmental groups (18%), public interest groups
(16%), State  and local government (11%), univer-
sities and  research organizations (11%), and labor
(4%).  Also participating  in  the workshop were
several private citizens  who have  been  actively
involved in the local debates over the Morgantown,
West Virginia  project,  and  a class of  students
from  California  State  College   in  California,
Pennsylvania.
The DOE Environmental Planning and
Assessment Process

  An initial question many participants asked dur-
ing the morning session was whether this process
actually worked as it was designed. They suggested
that it should be audited to see if, in fact, the process
is having an impact on decisions or if the informa-
tion contained in the various documents is actually
ignored.  They also  wondered if the process  was
now  irrelevant  because  of   President  Carter's
proposed energy initiatives for "fast tracking"
synthetic fuels.

  A major issue raised by the work  groups was
how decisions about overall energy planning and
management  are  made. Where in the process are
technologies  compared  and environmental trade-
offs resolved, and  how are priorities set among
renewable and nonrenewable  technologies? They
also questioned how energy  conservation  fits  in
and whether it is a factor in this process. Some par-
ticipants  expressed concern  that, in their view,
DOE's philosophy tends toward the view that "the
only solutions to energy problems are technological."

   Another overall criticism expressed by some par-
ticipants was that the process deals only with very
large projects. They were critical that the Office of
Environment does not have the same formal input
                                                34

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for smaller projects with possible serious environ-
mental  effects as  for  larger  projects  although
similar documentation is produced.

  Several work groups said they felt that specific
criteria  were needed for  Energy Systems Acquisi-
tion Advisory Board recommendations and for the
decisions made by the Under Secretary on whether
to  move  a  technology  to a further phase  of
development. They suggested that environmental
factors  be   used  to  form  a  "threshold,"  or
minimum standard  particularly  in decisions  on
whether to pursue a technology at all. If a  project
or  technology did not  reach  the environmental
threshold, conditions should be placed on approval
to  move  it  to the next  phase. These conditions
would require that environmental issues be resolved
before  development was continued. Participants
also  felt  that efficiency should  form a  similar
threshold, and that there should  be serious con-
sideration of how society would  get the greatest
benefit   from dollars   spent,  both  short and
long term.

   In discussing specific environmental factors that
should  be considered in the process, participants
listed those  associated with construction  (noise,
water, air, and  social and economic effects) and
with operation (air, wastewater quality and quantity,
equipment and signal noise, climatic effects, social
and  economic  costs, and effects on  property
values).   They  agreed  that  the  conventional
technical  environmental factors  have  generally
been  identified but not necessarily dealt with and
resolved.  They felt, however, that it was crucial to
look  beyond these elements and consider the site-
specific effects of any project. A number  of par-
ticipants felt that these site-specific issues were not
receiving  adequate attention or satisfactory resolu-
tion.  Several groups  felt  that  Environmental
Impact  Statement  preparation   should  be  the
responsibility of the Office of Environment instead
of the Program Office.

   A final area that needs improvement, according
to  many  participants, is coordination and  com-
munication  among various levels of government.
 Public Participation in the Process

   One  work  group summed up the feelings of
 many participants  in  the statement that "public
 input seems to get lost in the maze of a  vast
bureaucracy. It seems to go into a black box, and
there is no accountability to the public."

  There   was  general  agreement  that  better
dissemination of information was of critical impor-
tance to effective public participation. Participants
said that  active outreach was needed and made
several  specific suggestions  to  improve public
access to information. These include summaries of
reports that use less jargon and interpret what the
data mean to the public; putting copies of relevant
documents in libraries; distribution of minutes or
synopses of meetings to interested parties; compila-
tion of extensive mailing lists from public meetings
and inquiries  for  dissemination purposes;  and
establishing a  toll-free telephone number  to  a
person who can answer questions.

  Participants felt that the timing of public input is
important and that review of Environmental Impact
Statements  is  too  late.  They  felt  that earlier
discussion of issues in public forums was needed to
encourage communication, rather than presenta-
tion of testimony for or against  an issue. It was
suggested  that this discussion be national in scope
in the initial planning phases, and that local com-
mittees should then be formed for siting decisions
and to operate  throughout the rest of the process.
Some funding  support  would be needed but the
participants did not agree about  the level of this
support. One work group also recommended even-
ing meetings to facilitate participation by working
people.

  Several  groups requested that the public be given
an opportunity to review Environmental Develop-
ment Plans and Project Environmental Plans, to
ensure that all appropriate environmental concerns
are  included, and  to  review the Environmental
Readiness  Document, to ensure that some responses
have been developed for each concern. They also
felt that the public should be able to review Energy
System Acquisition  Advisory Board recommenda-
tions and the process and  rationale  for  their
decisions.
Environmental Concerns in Coal Liquefaction
and Coal Gasification RD&D

  During the  afternoon  session,  the discussion
focused on two specific technologies, coal liquefac-
tion and coal gasification. These two technologies
were chosen for discussion by this group because of
                                                35

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the potential  development of  a coal synthetic
industry in the region. Within DOE, a Commer-
cialization Task Force Study recommended coal
liquefaction and gasification as candidate commer-
cialization  technologies,  and three  gasification
projects and  two  liquefaction  projects  were
designated  "major systems" within the Program
and Project Management System. President Carter's
energy messages have given further impetus to the
development of these technologies.

   Participants were skeptical of the capacity of a
new process (the  Program  and  Project Manage-
ment Process) to govern an ongoing program. This
may be a particularly acute problem in the case of
synthetic fuels because of the political pressures
generated by Presidential and Congressional sup-
port for the program. Participants noted that many
decisions appear to have  been made without any
regard  for  the  formal process.  One  participant
voiced  a fear that "DOE has created a  monster
which it now cannot control."

   Some participants felt strongly that technology
development had  progressed far beyond environ-
mental research. They felt that this was a clear
indication that the process was not working. They
said that most technical environmental factors
have been identified, but that not all had been dealt
with satisfactorily. In particular, they felt that site-
specific issues required more attention. Some par-
ticipants thought that DOE simply had too much
confidence that it knows the answers to environ-
mental questions and that it should be more tentative.

   Specifically,  some  participants  questioned
whether research on a pilot or demonstration scale
truly represents the  environmental effects of a
commercial operation. The potential carcinogenic
effects  of synthetic fuel production was cited as a
major concern,  along with water and air  quality,
waste disposal,  noise, climatic effects, social and
economic impacts, and effects on property values.
Participants also noted the effect on land use and
asked what criteria are used in making siting deci-
sions. Other criteria that participants felt should be
considered in examination of coal  synthetic fuels
were net energy and net cost, including opportunity
costs. They urged that DOE compare technologies
and determine where the most benefit can be derived
from its investment.

  Participants expressed concern over the effects
that  the President's proposed "fast tracking" will
have on synthetic fuels research. They worried that
environmental research may be cut short, and that
opportunities for public participation in the pro-
cess would have little chance of expanding as they
have recommended.
Public Participation in Coal Liquefaction
and Gasification RD&D

  There was general agreement among participants
that  mechanisms  for public  participation  and
information dissemination in these areas has been
inadequate. Desire for a more open process was
expressed by many groups, but a basic question was
raised: does DOE really want public participation?
Some participants expressed skepticism about this
and  said that if information  dissemination and
public participation  do not appear  in DOE's
budget, then  DOE  does not  perceive  them as
a priority.

  Participants noted that the role of State and local
government in the process  was not clear. Par-
ticipants felt  that  State  and  local governments
should be more actively involved in gathering and
interpreting information. Many also felt that State
and local governments should be involved in decisions
as to whether a project should occur, in addition to
where and how.

  Participants repeated several of the  concerns
expressed in the morning  session: that documents
should be readily available locally and  in a form
that  the public can understand, and that active
outreach is needed. They also questioned how deci-
sionmakers can be  held  accountable  when  the
public knows so little about their deliberations and
decisions. They felt that publishing decisions would
be an initial step in increasing accountability.
                                                36

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APPENDIX B
NATIONAL HEARING SUMMARY
  The Section 11 National Hearing was held in
Washington, D.C., on October 3, 4, and 5, 1979.
The Hearing  panels  included the Department of
Energy  Assistant  Secretary  for  Environment,
representatives from the Environmental Protection
Agency and the Council on Environmental Quality,
and members of  congressional  staff,  environ-
mental groups, State governments,  and  industry.
Thirty-five  people presented  testimony, and an
additional participant subsequently submitted writ-
ten testimony. Participants represented a  broad
spectrum of interests, including industry, environ-
mental  organizations,  public  interest  groups,
universities and  research  laboratories, State  and
local government, and the general public. Many of
the participants had  attended one or more of the
regional workshops held earlier this year.

  Prior to  the Hearing,  witnesses  were  sent
materials discussing the focus of this year's Section
11  activities and the major issues  that emerged
from  the  workshops.*  Most of  the  witnesses
addressed  one or more of these issues in their
testimony. This  appendix summarizes comments
from the National Hearing on seven key issues and
on  other topics of interest to particular witnesses.
A full transcript of the  Hearing has also  been
published.
1. Nonnuclear Research Priorities

  Many Hearing witnesses were  concerned that
DOE's current nonnuclear RD&D policy appears
to favor large-scale, centralized technologies based
on nonrenewable resources. They felt that smaller-
scale,  decentralized,  appropriate technologies are
not  given  the attention  or  support they  merit.
Several participants described in detail the poten-
tial lower cost and environmental advantages of
alternatives such as  solar energy, recycling, and
conservation when these approaches are compared
with the  large  projects  DOE  now  emphasizes.
Many witnesses felt that there is an urgent need for
DOE to balance its  RD&D  efforts  better  if the
nation's energy requirements are to be met, in both
the immediate and the long-range future.
 * Environmental Protection Agency, Background Document for
  National Hearings. EPA 600/9-79-033. September 1979.
  It did not appear  to witnesses that,  in  setting
policy and RD&D priorities, DOE planners system-
atically evaluate and compare  all proposed and
available  technologies to  determine which ones
offer the greatest potential for meeting our  energy
needs  most economically and  with   the least
environmental risk. Instead, DOE

  is hardware-oriented; it is not geared to problem  solv-
  ing.  There  is  no  meaningful  competition  among
  technologies within each resource category. There  is no
  real competition among resources in developing national
  energy plans or determining budgetary priorities.
  (Kevin Markey, Friends of the Earth)

  Witnesses felt that such comparisons of both
production and conservation options are essential
to the development of a rational,  comprehensive
energy policy.

  In discussing the importance of performing such
assessments, one witness stressed that

  in evaluating  technologies  from  an  environmental
  standpoint, it is crucial to compare the new technology
  with that which it replaces or augments, as well as with
  other new competing technologies.
  (Gordon MacDonald, The MITRE Corporation)
2. Objectives of DOE  Research, Development,
   and Demonstration
  In one workshop, considerable time was spent
discussing the role of DOE as an RD&D agency,
and this question was examined further by several
Hearing witnesses.  Witnesses  said  that  DOE's
research goals were not  clearly articulated.  The
RD&D  program  seems  to  be  heavily oriented
toward  rapid commercialization  of technologies
rather than toward thoroughly testing and examin-
ing all  aspects of their application. One  witness
outlined how this aspect of RD&D could be improved:
   What you need is a system which is a little more
   balanced between branches that are building things and
   branches that are considering alternatives, rather than
   having a whole agency...whose mission it is to build and
   secondarily to do the best it can with the consequences....
   You need a more balanced situation, where you are set-
   ting your energy  priorities  and  your environmental
   priorities at the same time and then you look at those on
   the same footings and try to  ask, how can we optimize
   both of these—rather than looking for the best energy
   technologies and then later worrying about  how to
   handle the environment.
   (Richard Pratt, Pennsylvania Sierra Club)
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  Both this witness and other participants felt that
technical and environmental research  should  be
more closely linked and that DOE efforts in both
areas should be  designed to  provide the greatest
amount of  data  to be used in  decisionmaking.
Another witness reinforced this idea:
   I  think the need has to  be stressed for experimental
   facilities which test not only the technological capability,
   but also the environmental issues....There's also a need
   to emphasize decisionmaking  systems which focus on
   incremental and adaptive decisionmaking to the greatest
   extent possible,  rather than go/no-go decisions, so that
   we can reflect,  as we move through various steps, the
   findings of environmental research, assessment, or
   monitoring.
   (Allan Hirsch, U.S. Fish and Wildlife Service)
3.  Project Management and Review

   Witnesses felt that DOE's project management
system, which  requires top-level  review  only of
projects involving major Federal investment,  was
also a problem. Projects that do not require large
outlays of capital are managed at lower levels  and
therefore  may never have their potential  benefits
seriously considered by DOE policymakers. Wit-
nesses believed that this lack of attention to smaller
projects reinforces a bias toward high-technology
solutions to energy problems. Therefore, although
witnesses recognized that not all projects could be
monitored regularly by top officials, they  felt that
cost should not be the primary criterion for  selecting
projects for senior management review.
   The uniqueness of environmental or health considera-
   tions,  and potentiality  of  a system  should also  be
   examined.
   (Chester Richmond, Oak Ridge National Laboratory)
  Further, witnesses felt that this top management
review  should  not  be limited  to  determining
whether a technology  is technically feasible, the
cost is  acceptable, and the environmental effects
are manageable; it should also include comparison
with alternative technology options,  i.e., it should
review all feasible options. Criticism of the review
process included the opinion that
   the PPMS review process does not take into considera-
   tion  alternative  small-scale  technologies  when  it
   evaluates a particular major system technology. In other
   words, it does not consider other ways to obtain the
   energy which  is proposed  for  production  by  the
   technology under consideration.
   (Susan Tachau,  National  Center  for Appropriate
   Technology)
The witness added the consideration that
   if technological alternatives are not reviewed, then
   energy conservation possibilities will not be addressed,
   nor will appropriate technologies or other alternatives
   be addressed which might produce the same amount of
   energy  more  economically than  the  large-scale
   technologies being considered.
   (Susan  Tachau,  National  Center  for Appropriate
   Technology)
Another witness contended that
   The complex procedures which  were  established by
   DOE to guide  technology  expenditures, the PPMS,
   appear to fail to  provide for adequate evaluation of alter-
   native actions on programs...By the time the DOE staff
   has  committed  large  amounts of time and  financial
   resources to a particular project... it is almost too late to
   address alternatives adequately in an EIS.
   (Merilyn  Reeves,  League   of  Women  Voters  of
   Maryland)
  To ensure that alternatives are adequately con-
sidered in policymaking and project management,
several  Hearing  witnesses  suggested  that  tech-
nologies be compared according to  the efficiency
of their "end use"—that each fuel source and tech-
nology be compared with others that can be used to
meet a given energy need or "end use," such as
residential heating or transportation. As described
by one hearing witness,
   The principle is that the "end use" for which energy is
   required should determine, as much as possible, the source
   and form of the energy to be employed for that use. The
   choice should be based on consideration of conservation
   or, in other words, of energy economy. This means that
   preference should always be shown for forms of energy
   that, while remaining compatible with the "end use" to
   which they are put, are as direct as possible, involve as
   little capital-intensive technology as possible, and come,
   as much as possible, from renewable sources.
   (Susan Tachau,  National Center  for Appropriate
   Technology)
   Another witness  cited a recent  report by the
Carnegie-Mellon Institute of Research, "The Least
Cost Energy Strategy," which discusses a new way
of looking at interfuel competition—an approach
called "energy services"
   The premise is that an "energy service" is what people
   require: people want a warm house; they, in effect, are
   neutral as to whether this comes from gas heat, electricity,
   and so forth.
   (Benjamin Schlesinger, American Gas Association)
                                                     38

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4. Criteria for Assessing Technologies

   Several Hearing witnesses expressed concern that
environmental  criteria  do not appear  to  have
significant influence in DOE  technology develop-
ment decisions. Others felt that once the decision is
made to  invest  in  a technology,  it  is  virtually
impossible to halt or  even slow its  progress, even
if serious environmental  questions remain un,an-
swered. Therefore, many witnesses supported the
development and establishment  of explicit environ-
mental criteria which would be applied consistently
to all technology projects at  key decision  points.
Further,  they felt  that  these  criteria should be
explained to the public and that the results of the
application of the criteria to each decision should
be disclosed.  As one Hearing witness commented
   Absence of explicit criteria gives the appearance, if not
   the reality, that decisions are arbitrary.
   (Mark  McClellan,  Pennsylvania  Citizens Advisory
   Council)
   Witnesses felt  that in addition to  cost and  net
 energy analysis, the criteria should address a broad
 range of environmental issues; should apply to the
 potential local, regional, and global effects of  a
 technology project;  and should include considera-
 tion of the entire fuel cycle.  Ideally  these criteria
 should be measurable and observable.  In discuss-
 ing the  broad range of applicable  criteria,  one
 scientist stated that
   The  process of  evaluating  competitive  technologies
   requires explicit criteria, which should include risk evalua-
   tion,  potential  for  environmental  degradation,
   aesthetics and social concerns, and the aspect so often
   overlooked—the worldwide consequences of developing
   a technology....The obvious criteria include impacts on
   air, land, water, and  the  biosphere.  The  changes
   brought about in these resources must then be evaluated
   in terms of how they affect man. In this analysis, it is
   not only direct health effects that are of importance, but
   also the impact on those values that are often impossible
   to quantify, but are so important, such as the aesthetic
   impacts of changes in  the  recreational values of the
   environment.
   (Gordon MacDonald, The MITRE Corporation)
 Another scientist noted that in evaluating energy
 technologies,


   environmental and health considerations cover a span
   from site-specific to those that are truly global in nature.
   One might look to the acid rain problem as an indication
   of growing interest in regional concerns...We must also
   include  the internal  environment  of  an  daergy-
   generating facility, which brings us into the iniportant
   area of worker  protection, health, and safety.
   (Chester Richmond, Oak Ridge National Laboratory)
Regarding this last concern, a representative from
the National Institute on Occupational Safety and
Health said that
   the issue of occupational safety and health has generally
   been given relatively low priority and visibility in the
   development of new energy technologies.
   (Kenneth Bridbord, National Institute for Occupational
   Safety and Health)


He felt that these  concerns should be  among the
earliest issues to be discussed, studied, and resolved
before large-scale commitment to a technology is
made,


   because occupational  safety  and  health issues  are
   largely independent of siting,  occupational safety and
   health  assessments  should  really  precede  overall
   environmental assessment.
   (Kenneth Bridbord, National Institute for Occupational
   Safety and Health)


   Several witnesses discussed potential approaches
to the application  of environmental  criteria. One
described two models that  could be  used to inte-
grate  environmental  factors  into  technology
decisionmaking.


   The first model is to have a periodic review to identify
   and avoid potential 'show stoppers'...things that would
   stop the technology dead and which unless overcome
   would make continuation unwise. It is my impression
   that this is the motivating element of the current DOE
   process. But a second  model  is to have an interactive
   process in  which environmental and energy conservation
   factors  are influential in steering  the  technology
   development along one path  as  opposed to  another
   path.
   (Larry Moss, National  Coal Policy Project)


Another witness had a slightly different perspective
on the role of environmental criteria in the review
process.


   The review process is only useful and accomplishing its
   objectives if it can result in a negative decision.  This
   does not appear to be the case within the Department of
   Energy today. Once a project enters the funding pipeline
   for basic research, it appears  to be a foregone conclu-
   sion that  it will proceed unmolested through the  key
   decision points in the PPMS to commercialization.
   (Mark  McClellan, Pennsylvania Citizens  Advisory
   Council)


The  process   should  be  modified  to   include
thresholds  or


   environmental conditions which  must be met during
   each development phase. Any deficiencies or unaccep-
   table environmental problems  should be a condition for
   temporarily halting and in severe cases canceling a proj-
   ect. In  the case of the project that does not meet the
                                                       39

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   threshold, the DOE Under Secretary should have the
   discretion to allow the project to proceed...but only to
   the next phase, and under conditional approval which
   would stipulate that specified environmental concerns
   must be resolved in a specified time period, or the proj-
   ect will be placed on permanent hold at that phase. No
   technology should ever be approved for commercializa-
   tion unless all thresholds are satisfactorily met.
   (Mark  McClellan,  Pennsylvania  Citizens  Advisory
   Council)
   Environmental issues are currently examined in
Environmental Readiness Documents (ERDs). One
witness discussed shortcomings, primarily a lack of
thoroughness, in the way the ERD deals with these
issues.
   ERDs should address five areas: the current state of
   knowledge about the health, safety, and environmental
   impacts that would be created by deployment of the
   technology; available control technologies; the current
   and proposed regulations which will affect commer-
   cialization;  the  areas of  environmental concern for
   which information is inadequate and further research is
   required; and the likelihood of significant delay in
   attaining program objectives because of environmental
   concerns. The ERDs tend to present data unsystemat-
   ically  and  to emphasize qualitative rather than  quan-
   titative analysis. Most ERDs treat the current state of
   knowledge about environmental concerns insufficiently.
   They omit definitions of the origin and size of the envi-
   ronmental concerns  ....ERDs now merely  list a pot-
   pourri of research needs and  their  dollar value.  They
   should make some effort to prioritize these needs....
   Environmental issues are now identified haphazardly. A
   more logical approach, used in many of the analyses at
   Brookhaven, would go through, the entire fuel cycles of
   each of the technologies and identify possible environ-
   mental conflicts.
   (Samuel Morris for Leonard Hamilton, Brookhaven
   National Laboratory)


   Finally, a  witness discussed the importance of
developing  and applying environmental  criteria
early in the process
lived near planned projects, were not given a clear
role in the DOE decisionmaking process.

   Most of the assessment of the environmental impact
   is...done on the national level. Most of the serious envi-
   ronmental  effects of the  new large-scale technologies
   will be felt most severely at the regional and local levels
   where the  energy facilities are actually located. These
   effects must be examined closely.
   (Susan  Tachau,  National  Center  for  Appropriate
   Technology)

   Participants  felt  that  more responsibility  for
environmental assessment should be delegated to
these local  levels to increase  the  likelihood that
local concerns, as well as generic technology con-
cerns, would be dealt with at  appropriate times.
Local, State, or regional officials have a familiarity
with their own environment that results in a deeper
understanding of the  potential range and  severity
of impacts  a project may cause. This information
must be considered along with generic  technical
data in making technology  project decisions.  In
discussing the importance of continued research at
all levels, another witness recommended  that

   DOE...should coordinate its funding sources so that
   both site-specific...and generic work can be pursued...
   Answers to the regional and global concerns most probably
   will arise from the generic research conducted as part of
   the core programs at various laboratories.

Further,

   non-Federal levels of government will become the foci
   of decisions on environmental tradeoffs among energy
   policy alternatives. Harmony between energy develop-
   ment and regional concerns will be largely defined at the
   regional level, with the Federal government defining the
   boundaries  of  acceptability, offering  incentives  for
   actions and decisions that are in the national interest, and
   helping resolve conflicts that arise between States and
   regions whose actions and decisions affect one another.
   prior  to siting decisions. Today these considerations
   usually enter after individual sites have been selected
   and are being evaluated and after the battle lines have
   been drawn. If we use these criteria early in the process
   of identifying candidate sites for demonstration projects
   or for full-scale projects, we could ease—if not avoid—
   many last-minute confrontations.
   (Allan Hirsch, U.S. Fish and Wildlife Service)
Therefore,


   DOE should make  special efforts to keep State and
   especially local officials involved, as projects proceed
   through the environmental evaluation process, primarily
   through  improved  information dissemination,  assis-
   tance  to  outside  groups in  preparing  EISs,  and
   establishing local planning and review groups.
   (Chester Richmond,  Oak Ridge National Laboratory)
5. Appropriate Levels for Treating
   Environmental Issues

  A  concern  expressed  in  each workshop and
repeated at the  National Hearing was that agen-
cies at the State and local levels, whose residents
And one witness complained of a present situation.


   DOE has spent  millions studying the Geysers. We're
   practically an annuity for the National Labs. But our
   local government still doesn't have the basic environ-
   mental and economic information it needs in a form it
   can  use. We tend to think it might be because no one
                                                       40

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  ever came to us and asked us. Local government is too
  often treated as the object of some anthropological field
  trip. Our geographic jurisdiction seems to be considered
  as some underdeveloped colonial possession, just right
  for exploitation.
  (Mary  Jadiker, Lake  County,  California, Planning
  Commission)

  Many participants stressed that the role of local
and State agencies should not be limited to reviewing
documents or decisions. Instead, these organizations
should  be involved in a steering capacity  before
final siting decisions are made and then throughout
the life of a project. As one witness stated,

  We're  the ones  who  see, hear, smell, pay  for, or
  benefit from our 'go' decisions. Obviously, we feel those
  ultimate decisions must be made at the local level.
  (Mary Jadiker,  Lake  County,  California, Planning
  Commission)
  should be doing so and doing so very early. Early par-
  ticipation outside the agency, we believe, is necessary for
  the effective management of any program which is ulti-
  mately going to impact the public. Now...the public has
  its say (only later) and often that is inefficient and leads
  to many delays which could have been prevented if this
  much broader public impact had begun early.
  (Richard Pratt, Pennsylvania Sierra Club)

  Little attempt is made to inform the public when
decisions are going to be made and what the options
are.  Thus,  citizens  cannot actively seek  involve-
ment at appropriate times. This situation is exacer-
bated by the seemingly constant crisis atmosphere
and  organizational  flux that  surrounds  DOE
decisionmaking, which makes  it very difficult for
outsiders  to discern how and when to attempt to
influence the process.  To improve communication
with the public on decisions, one witness suggested
that
 6. Public Participation

   The clearest theme to emerge  from  the  work-
 shops and  the National Hearing was that  public
 involvement in DOE's management and decision-
 making  systems  has been woefully  inadequate.
 Hearing  witnesses  expressed a  deep   sense  of
 frustration in their efforts to participate in DOE's
 decisionmaking process. Through their comments,
 they reinforced  the four overall criticisms  of
 DOE's interactions with the public that were made
 at the workshops, and  they offered some specific
 recommendations.

   First,  the amount and  quality  of  information
 available to the  public  is inadequate.  Important
 internal documents  are not  systematically  dis-
 seminated, and documents that are supposed to be
 available upon request are difficult, if not impossi-
 ble  to obtain. Materials distributed are  frequently
 highly  technical  and  laden  with  bureaucratic
 jargon.

   Second,  opportunities for effective public par-
 ticipation in the decisionmaking process are inade-
 quate. DOE technology management processes do
 not systematically involve the public until man-
 dated by NEPA requirements. At this point in the
 process, many critical decisions have already been
 made. The public is  never given an opportunity to
 affect the choices DOE makes among alternative
 technology options.  According to one witness,

   We can see that DOE is not involving a wider public in
   the decisionmaking process, and it is our view that they
   we need to put more emphasis not so much on the
   formal system of preparing and circulating documents, but
   providing opportunities for various segments of the
   public who are concerned  with these projects—like
   government agencies,  the  industry, environmental
   community—to meet in forums where... questions can
   be...(asked) and mutual respect can be generated.
   (William Rogers, Gulf Mineral Resources Company)

   As an example,  one witness cited the National
Coal Policy Project, which aimed to reconcile the
views of energy developers and those of environmen-
talists. The approach to reconciliation used in the
project was the "Rule of Reason," an alternative to
adversary-type processes, in which the primary aim
of the parties was to find an accommodative solu-
tion which did not seriously transgress the values of
either party. This  witness suggested that DOE
could use this process to help resolve important
long term  issues,  such  as those  involved in the
development of synthetic fuels.

   The third overall criticism of existing participa-
tion mechanisms was that they appear to favor cer-
tain  interests. Advisory committees  seem  to be
dominated by industry groups, and research review
panels are composed of narrow groups of profes-
sionals with vested interests in pursuing traditional
technology  projects.  Groups that are not  well-
funded have difficulty being involved in the public
programs offered.

   Finally, participants felt that the general attitude
of DOE  officials  is not favorable toward public
participation.  Although certain  officials in DOE
have a strong personal commitment to public in-
volvement, overall there seems to be too little value
                                                   41

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attached to effective citizen input. Even when  lip
service is  given to citizen activities, little time is
devoted to adequate exchange between top officials
and representatives  of public groups. Many DOE
representatives seem to consider members of public
groups as  naive amateurs with little of substance to
contribute. One witness countered this attitude:


   No management system will work without meaningful
   public involvement. It must be clear to the public also
   how DOE responds to public... participation. Credibility
   of public involvement efforts  demands a responsive
   Department.
   (Kevin Markey, Friends of the Earth)


   Witnesses  stressed  that the implementation  of
meaningful  measures to  encourage public  par-
ticipation would, in  fact, result  in a number  of
benefits to DOE: issues would be identified earlier,
conflicts would be resolved more  easily, greater
public support would be fostered, and the process
would be expedited.  Finally,  it  would meet the
public's  demand  and  legislative  mandates  for
greater participation  in governmental decision-
making. As one participant summarized,


   Public participation should not be viewed as  an end
   unto itself, rather as a means of achieving goals, and
   it should always be clear that it is providing  an oppor-
   tunity...  to participate in the decisionmaking...first you
   decide what decisions have to be made, then you decide
   when you are going to make those decisions, and then
   you decide how it is best to bring in the public to provide
   advice at those key points in the decisionmaking process.
   (Edith Chase, League of Women Voters)
 7.  Discussions of Specific Technologies

   A number of witnesses discussed the merits or
 drawbacks  of  specific  technologies.  Individual
 witnesses discussed the pros and cons of geothermal
 development and synthetic fuels from coal and oil
shale.  Others discussed  the benefits  that would
result from an increased DOE emphasis on recycling,
improved  waste  management  methods,  gasohol,
and the increased efficiency of electrical appliances
and equipment.


  Most  witnesses  who  discussed  specific  ap-
proaches  focused  on  conservation,  renewable
resources,  and  appropriate   technologies.  One
witness stated,  regarding conservation, that it

  must be an inherent part of our national energy policy
  and  must be  viewed  as  complementary  to  energy
  research and development and not as an alternative to it.
  (Patricia Pelkofer, Group Against Smog and Pollution)

Another pointed out the necessity of conservation.

  Conservation has been our only source of new supplies
  in the recent past and will be our only source in the near
  term. Conservation,  along with the use of renewable
  sources, should be our major source in the long term.
  (Lore Keffer, Group  for Recycling in Pennsylvania)

  Finally, in discussing the urgency of the need to
place  more emphasis on renewable  sources  of
energy,  one  witness  stressed  that  the  national
energy program must  soon see


  the beginning of a transition in economic and political
  advantage from the fossil and nuclear programs to the
  more benign renewable  fuel forms. The purpose of this
  Hearing is to establish a document for congressional and
  executive review.  I think it has to be established here
  that the people have gone on record as being concerned
  about a future that  is dominated by dead  ends  and
  disappointments.   A   self-sustaining  renewable  fuel
  should be priced below  the use of our rapidly depleting
  reserves by policy. To give the petroleum or synthetic
  fuels programs articifical supports and financial benefits
  is to work counter to basic principle, and it is to suc-
  cumb to political irrelevance and cowardice, to oppose
  the inevitable, to delay the day until we must face our
  cold and hungry children in the darkness of our own
  selfish short-sightedness because we waited too  long.
  (Scott Crytser, Pennsylvania Gasohol Commission)
                                                     42

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REFERENCES
DOE Documents

Department  of  Energy,  Citizen  Participation
Manual (Order 1210.1). August 13, 1979.

Department  of  Energy, Compliance  with  the
National  Environmental  Policy  Act,  Proposed
Guidelines, Federal Register, Volume 44, No. 139,
Wednesday,  July 18, 1979

Department  of  Energy, Designation  of Major
Systems (Order 4240.1).  February 1, 1979.

Department of Energy, Draft Report of the Energy
Research  Advisory  Board.  Study  Group  on
Construction/Development Project Management.
October 1979.

Department  of Energy,  Draft U.S. Conservation
Strategy,  Office  of  Conservation  and  Solar
Energy. November 2, 1979.

Department  of Energy,  Environmental Develop-
ment Plans (Order 5420.1). August 1978.

Department  of Energy, Intergovernmental Affairs
Council Charter. October 1, 1979.

Department  of Energy, Major System Acquisitions
(Order 5700.1). September 11, 1978.

Department  of  Energy  Memorandum,  Envi-
ronmental Planning  and Review  in  Relation to
Major Systems  Acquisition Projects,  Assistant
Secretary Ruth Clusen, December 18,  1978.

Department of Energy  Memorandum, Program
and Project  Management System for DOE Outlay
Programs. Interim Policy and Guidance. Under
Secretary Dale Myers, May 31, 1978.

Department of Energy,  National Energy Plan II,
Environmental Trends and Impacts, May 9, 1979.

Department of Energy, News Release.  "Energy
Secretary Establishes Local Government Advisory
Group." R-79-510. November 30,  1979.

Department of Energy, Office of the Assistant
Secretary for Environment, Office of Technology
Impacts Report, April 1979.
Department of Energy, Policy and Program Plan-
ning System (Interim Management Directive 0203).
September 30,  1977.

Department  of  Energy,  Project  Management
System Study (DESM 79-1). November 1979.

Department of Energy, Proposed Guidelines for
Compliance  with  the  National  Environmental
Policy Act. Federal Register Notice 42136. July 18,
1979.
EPA Documents

Environmental Protection  Agency,  Background
Document for National Hearings. EPA 600/9-79-
033. September 1979.

Environmental Protection Agency, Issue Paper on
Coal Liquefaction  (Solvent Refined  Coal) Coal
Gasification (Gasifiers in Industry) Technologies,
July 31, 1979.

Environmental Protection Agency, Issue Paper on
Oil Shale Technologies, July 18, 1979.

Environmental Protection  Agency,  Issue Paper
on Urban Waste and Cogeneration Technologies,
July 12, 1979.

Environmental Protection  Agency, The Federal
Nonnuclear  Research  and  Development  Act
(Public Law 93-577),  Section 11,  Environmental
Evaluation, EPA 600/9-79-020, June 1979.
Other Federal Documents and Legislation


Council on Environmental Quality. National Envi-
ronmental Policy Act, Regulations, Federal Register,
Volume 43, No. 230, Wednesday, November 29,
1978.

Energy Advisors: An Analysis of Federal Advisory
Committees Dealing with Energy, Prepared for the
Subcommittee  on   Reports,  Accounting, and
Management of the Committee on Governmental
Affairs, U.S. Senate, March 1977.

Executive Office  of the  President,  Office  of
Management and Budget. Major Systems Acquisi-
tions. Circular A-109. April 5,  1976.

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Federal Advisory Committee Act of 1972 (Public
Law 92-463). March 1972.
Other Materials

Delphi Research Associates, The First Year: An
Assessment, A Report on DOE's Environmental
Advisory Committee, January 1980.


Inside DOE, Biweekly McGraw Hill Publication,
December 7, 1979.

Landsberg,  Hans, H., et al.,  Energy, the Next
Twenty Years, (Sponsored by the Ford Foundation
and Administered by Resources  for the Future),
Cambridge  Mass.: Ballinger Publishing Company,
1979.
Resolving  Environmental Issues  in Energy
Development: Roles for the Department of Energy
and its Field Offices. Rand Corporation. January
1979.

Schurr,  Sam H., et  al.,  Energy in America's
Future:  The Choices Before Us,  Johns Hopkins
University Press for  Resources  for  the Future,
1979.

State of  Colorado,  Department   of Natural
Resources,  Project Status  Report on  the Joint
Review Process, November 1979.

Stobaugh, Robert and Daniel Yergin, Eds., Energy
Future, New York: Random House, 1979.

Open for Business Only?, A Common Cause Study
of the Department of Energy, February 1979.

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