THE FEDERAL ROLE IN ENERGY R&D

Abstract

i\BSTRACT This paper dmcumen-ts and a n a l y z e s r e c e n t t r e n d s i n F e d e r a l energy r e s e a r c h and devel-opment programs. I n l i g h t of t h e xnarkrstpla.cre philosophy of t h e p r e s e n t A d m i n i s t r a t i o n , tlhe p o s s i b l e b e n e f i t s of a s t r o n g F e d e r a l r e s e a r c h ]program v e r s u s t-he p o t e n t i a l advant a g e s of r e l y i n g on p r i v a t e s e c t o r r e s e a r c h programs t o develop new technology a l t e r n a t i v e s a r e analyzed i n some d e t a i l . MRCUS efforts had remained relatively stagnant, the 1973 Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo galvanized the Nation into a frenzy of activity. Prominent among the stepped-up energ'?, efforts were energv research programs, including research in a number of areas that had heretofore enjoyed little attention and less funding. Research on the so-called alternative energy sources (solar, wind, tides, etc.) in particular was suddenly thrust out of the closet, so to speak, and hailed as the great white hope of humanity. By the end of the decade, the Federal energy budget had swelled greatly, and analysts and politicians alike were beginning to take a second look at what the Federal Government should be doing in the energy area. With the election of President Reagan, the pendulum began to swing the other way, and since 1981 Federal energy R6D budgets have been pared dramatically. A review of the rise and fall of Federal energy R6D provides eome useful insight into recent U.S. energy policy and its impacts. BRIEF HISTORY PRE-1973 The pre-1973 Federal energy R6D program was a relatively low-level effort. Focussed primarily on nuclear power, where the U.S. Government had always Downloaded by [UQ Library] at 13:08 03 February 2015 THE FEDERAL ROLE IN ENERGY R&D 389 played a major role, it emphasized very large-scale, long-term, high risk programs. Smaller efforts addressed advanced fossil fuel technologies, and virtually no funding went to the alternative energy sources, The relative economic stability of the Nation and modest level of public interest during this period permitted this long-term, rather focussed approach. Furthermore the lack of a single responsible agency during most of this period (the Atomic Energy Commission was responsible for nuclear RLD and the Department of the Interior for most fossil energy RLD) made it difficult to approach the energy problem on an overall basis. The notion that there might be very near-term limits to the Nation's energy supply did not seem important. 1973-1980 Almost overnight, the oil embargo changed all that. Long lines at the gas stations and lowered thermostats brought the dawning recognition that the United States, despite its vast resources, was very vulnerable. The shock to the Nation's complacency precipitated large and rapid changes in the scope, direction, and intensity of the entire U.S. energy program as the Nation geared up to wage "the moral equivalent of war." There were large budget increases...