Solar Energy: The Federal Program and Congressional Interest

SOLAR ENERGY:

T H E F E D E R A L P R O G R A M AND C O N G R E S S I O N A L I N T E R E S T

ISSUE BRIEF NUMBER IB83027

UPDATED 02/16/84

AUTHOR:

J.

Glen Moore

Science Policy Research Division

T H E L I B R A R Y OF C O N G R E S S

CONGRESSIONAL RESEARCH SERVICE

MAJOR I S S U E S SYSTEM

DATE ORIGINATED 02/08/83

FOR A D D I T I O N A L I N F O R M A T I O N C A L L 287-5700

0224

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ISSUE DEFINITION

Following the oil embargo of 1973-74, the Federal Government began an

aggressive solar energy development program which grew steadily through the

Carter Administration to become a n important component of the Federal energy

effort. Under the Reagan Administration, however, a n energy policy has been

introduced which places greater reliance on private enterprise for energy

development. As a result, Federal solar R&D has been sharply reduced, and

Federal support for solar demonstrations and commercialization activities is

being phased out. At issue is the effect that the pace and timing of the

reduction in the Federal solar program will have on solar development and

commercialization efforts in this country.

BACKGROUND AND POLICY ANALYSIS

SOLAR POWER DEFINED

There are many ways in which solar energy can be used.

Some applications

make use of "direct" solar energy received o n the Earth each day a s heat or

light. Others tap "indirect" solar resources that have been collected

through natural processes.

Natural collection of solar energy gives rise to

wine, plant growth, the hydrologic cycle, and warm surface waters in the

ocean.

These "indirectgt solar resources can be &further converted into

thermal energy, electricity, or clean burning fuels'.

Much of the confusion about s o l a r g s potential, its present contribution,

even its Federal budget, is attributable to how the term i s defined.

In the

narrowest sense, the term means only direct applications.

These include

passive applications, direct heating and cooling, .swimming pool heaters,

domestic hot water heaters, agriculture and industrial process heat systems,

photovoltaics (solar cells), and high-temperature electric power generators.

In the broadest sense it means both direct and indirect applications.

The

indirect applications include wind .conv'ersion systems, ocean thermal energy

conversion systems, high- and low-head hydropower plants, and a wide variety

of bioconversion processes, including direct wood burning and alcohol fuels

derived from biomass.

Currently, the U.S.

meets about 5% of its energy

needs from indirect solar sources

3% from hydropower

and about 2% from

wood burning. The contribution from direct sources i s negligble.

--

--

Other issue briefs on solar-related topics are IB78012

Solar Energy

from Space: Satellite Power Stations; IB74058 -- Ocean-Generated Power Ocean

The Alcohol Fuels; and

Thermal Energy Conversion; IB74087 -- Gasohol:

IB80091

Wind Energy.

--

THE FEDERAL PROGRAM AND CONGRESSIONAL INTEREST

The Arab oil embargo of 1973 sparked the establishment of a comprehensive,

coordinated Federal energy program to deal with the Nation's immediate and

long-term energy needs.

The modest Federal effort in

solar

energy

development that existed prior to the embargo was made part of the overall

~

Federal. solar

program and was greatly accelerated. During the 1 9 7 0 ~ the

program grew rapidly to include not only basic and applied R&D,' but also

joint participation with the private sector in demonstration projects,

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UPDATE-02/16/84

commercialization, and information dissemination.

Solar funding grew commensurately.

In the 1960s and early 1970s funding

for solar R&D was only a few hundred thousand dollars annually; by FY8l

tbe peak funding year for solar R&D

it had grown to $599 million

(1a.ter

. reduced to $472 million by rescission and deferrals with $549 million finally

expended).

In addition to direct support for R&D

and demonstrations, the

Federal Government adopted market incentives such as the business and

residential tax credits, and further supported solar technologies through

regulatory reform in such legislation as the Public Utilities Regulatory

Policy Act (PURPA).

The Internal Revenue Service estimates that the indirect

support provided by the solar residential and business tax credits alone will

amount to $4.5 billion during the period FY79-86.

--

--

Congress has played a key role in shaping Federal programs and policies in

solar energy.

It took the initiative in 1974 in the absence of a coherent,

long-range policy from the Administration and has led ever since through

legislative initiatives and close reviews of annual budget

submissions.

Solar legislation enacted by the 9 3 6 Congress and succeeding Congresses forms

the basis of the current Federal effort.

Among these guiding statutes

are

-.

the following.

o

The Energy Reorganization Act of 1974 (P.L. 93-438),

which consolidated functions relating to solar and

other renewable energy research into the Energy

Research and Development Administration (ERDA);

o

The Solar Hearing an-d Cooling Demonstration Act

of 1 9 7 4 (P.L. 93-409), which established a program

to demonstrate experimental prototypes of solar

heating -and cooling technologies for residential

and commercial buildings applications and to

determine their economic and technical feasibility;

o - T h e Solar Energy Research, Development, and

Demonstration Act of 1974 (P.L. 93-473), which

cBarged ERDA with coordinating research, development,

and demonstration activities of several Federal

agencies (including the Atomic Energy Commission,

the National Aeronautics and Space Administration,

the House and Urban Development Agency, the National

Science Foundation, and the Federal Power Commission);

.

o

' T h e Federal Nonnuclear Energy Research and Development

Act of 1974 (P.L. 93-577), which established a

comprehensive national program of research and

development for potential alternatives to

conventional energy sources, including solar,

geothermal, and other renewables;

o

The Solar Photovoltaic Energy Research,

.Development and Demonstration Act of 1978 (P.L.

95-590), which established an aggressive research,

development, and demonstration program for

photovoltaic systems to produce electricity that is

cost-competitive with utility-generated electricity;

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UPDATE-02/16/84

o

The Energy Security Act of 1980 (P.L. 96-294), which

created the Solar Energy and Energy Conservation Bank

to provide financial assistance to a number of

renewable technologies in order to encourage their

commercialization;

o

The Ocean Thermal Energy Conversion Research,

Development, and Demonstration Act of 1980

(P.L. 96-310), which established specific national

development goals for what considered the most

promising of the ocean energy systems, OTEC;

o

The Wind Energy Systems Act of 1980 (P.L. 96-345),

which established specific program objectives for the

wind energy program.

Appendix I 1 at the end of this issue brief provides a more complete

solar enactments.

list

of

Congress has consistently

supported a broader, more aggressive solar

program than any Administration in office since the Federal program took off

in 1974. Every R&D, regulatory reform, tax, or other incentive bill to

promote solar originated in Congress.

In every year since 1974, Congress has

added funds to the Administration's solar budget request.

The net result of

Congress's interest has been a higher priority for solar in the Federal

energy R&D effort and a larger Federal role in solar commercialization than

would have been expected from the Administration.

SUMMARY:

REAGAN ADMINISTRATION AND 97TH CONGRESS

During the 1 9 7 0 ~as

~ the Federal solar program took shape, Congress and

the Administration in office were frequently a t odds over program details and

level of Federal support for solar.

When

the Reagan Administration took

office in 1 9 8 1 , however, the gap between the two widened appreciably.

The

new ABministration .redefined the Federal role in energy R&D.

Instead of

concentrating on near-term product development and commercialization, the

potentially

Federal- ef5or.t would n o w focus on long-range, high-risk ,

high-payoff- pro3ects.

Demonstration and commercialization phases necessary

for bringing new technologies to market would be left solely to the private

sector. The Administration's new energy policy ended the long-standing trend

of expanding

solar budgets and expanding Federal involvement in solar

commercialization.

During the two years of the 97th Congress, the Reagan Administration

succeeded in dismantling much of the existing Federal solar program.

Among

other actions, it (1) reduced the R&D budget of every solar subprogram;

(2)

eliminated many demonstration and commercialization projects; (3) eliminated

the four regional solar energy centers; (4) reduced the staff of the Solar

Energy Research Institute by more than half

and restricted its work

to

advanced R&D projects; (5) took actions which resulted i n a substantial

reduction i n the scope of operation of the Solar Energy and Energy

Conservation Bank; and ( 6 ) reduced the information dissemination effort.

It

would have gone further had Congress not intervened'to restore R&D

funds to

many

subprograms targeted for elimination and to protect certain tax

incentive programs from repeal.

The Administration

used the authority

available to it in the annual budget review process to effect the reduction

afid redirection of the solar program. Although there was some question that

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UPDATE-02/16/84

the Administration's actions were i n conflict with

congressionally mandated

programs

particularly in the photovoltaic, wind, and ocean energy program

areas

its authority to reduce programs. through the budget process was

never seriously challenged.

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--

Budget History

The following table summarizes the final action taken on the two

budgets submitted to the 97th Congress by the Reagan Administration.

figures are for comparison.

solar

FY81

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UPDATE-02/16/84

SOLAR R&D BUDGET HISTORY DURING 97TH CONGRESS

(in millions)

FY81

Actual

FY82

Request

FY82

FY83

FY83

Actual Request Appropriatio

Photovoltaic Energy Systems

151.6

62.9

74.0

27.0

57.9

Thermal Energy Systems

138.3

44.0

56.0

18.0

49.4

Biomass Energy Systems

31.7

20.5

20.5

6.6

15.9

Wind Energy Systems

77.5

19.4

34.4

5.5

31.4

Ocean Energy Systems

34.6

0.0

20.8

0.0

10.5

Solar International

10.8

4.0

4.0

9.5

10.0

Solar Energy Research

Institute (construction

5.0

0.0

0.0

0.0

0.0

Solar Technology Transfer

1.4

6.7

6.7

--

3.0

Alcohol Fuels

18.0

10.0

10.0

2.9

5.0

Program Direction

6.8

4.0

4.0

2.2

5.9

Program support

0.0

0.0

3.5

0.5

1.0

Solar Reserve

0.0

0.0

12.3

0.0

0.0

549.0

193.3

268.-3

72.2

201.6

Solar Building Energy

Research

TOTAL NEW BUDGET AUTHORITY-

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UPDATE-02/16/84

In the absence of an FY83 appropriation bill for the Department of Energy

and other agencies, an omnibus budget resolution (P.L.

97-377)

was enacted

at the close of the 97th Congress providing for the continuation of solar

funding in FY83 at .the F Y 8 2 level. This was perceived a s a boon for the

solar program since the FY82 appropriation ($268 million)

was substantially

more than the Administration's request ($72 million) and more than the budget

levels recommended by either House Appropriations ($180.4 mallion) or Senate

Appropriations ($187.9 million).

The budget resolution gave the Administration great latitude in setting

anywhere from the Administration's request to the

the final FY83 level

FY82 level.

The Administration's FY84 budget request, submitted to Congress

on Jan. 3 1 , 1983, indicates an estimated solar budget of $201.935

million.

Later budget

sources indicate that

the

amount

available

in

FY83

appropriations totals $201.6 million.

--

Solar Bank Action

The Solar Energy and Energy Conservation Bank (the Bank) was established

(P.L.

96-294).

The Reagan

by Title V of the Energy Security Act of 1980

Administration found the Bank inconsistent with other energy policies,

possibly duplicative of existing tax and loan subsidies, and a potential

windfall for some eligible recipients.

The Administration sought to kill the

Bank before it could be implemented by requesting z e r o funding for FY82 and

FY83.

Congress was unwilling to accede to the Administration on this and

appropriated $22 million and $20 million, respectively, for the two fiscal

years.

Congress did, however, agree to a reauthorization of the Bank through

the Omnibus Budget Reconciliation Act of 1981. The reauthorization reduced

the operating budget from $3.025 billion over 4 years to just $150 million

over 3 years.

(See section entitled 98TH CONGRESS for further action.)

98TH CONGRESS

FY84 R&D Budget

Congress received the Administration's FY84 budget request Jan. 31, 1983.

It included $86.659 million for solar, which was $14.5 million more than the

FY83 request, but $127.5 million less than the FY83 estimate.

The F Y 8 4 request offered few substantive changes over the FY83 request.

Ocean energy was again zeroed out.

Passive and active solar were folded into

the broader solar thermal program rather than being zeroed out a s they were

in the FY83 request.

Solar international, the reserve account, and program

support were zeroed out this year.

A $3.1 million budget line for technology

transfer replaced the solar information systems budget line.

The table below shows the Admjnistrationqs FY8G request and the levels

appropriated in P.L. 98-50, the Energy and Water Development Appropriation

Bill, 1984 (H.R. 3132).

The $181.65 million appropriation is slightly above

both the $180 million originally approved by the House and the Senate's $176

million.

An additional $ 6 million, deferred in FY83, was made available for

the solar thermal program and is reflected in the table.

Compromise was

reached on most of the differences which

separated the House and Senate

versions.

The Senate did prevail, however, on its refusal to fund $1 million

for the design of buildings at the Solar Energy Research

Institute, a s

CRS- 7

contained in the House bill.

FY85 R&D Budget

The Administration has requested $163.6 million for solar R&D

in FY85.

While the proposed budget is 10% less than Congress appropriated in FY84, it

far surpasses the FY83 ($72 million) afid.FY84 ($87 million) budget requests.

Of note in the FY85 request, the Reagan Administration has for the first time

$3.5

million for engineering

asked for funds for the OTEC subprogram

research.

Funds ($0.5 million) were also requested for the first time to

support international solar programs.

With one exception, every subprogram

was reduced by varying amounts from FY84 levels.

The exception is the

technology transfer subprogram which was increased by 85% over FY84.

--

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UPDATE-02/16/84

FY84 AND FY85 SOLAR BUDGETS

(in thousands)

FY84

DOE

Request

Photovoltaic Energy Systems

Solar Thermal Energy Systems

Solar Building Energy Research

Wind Energy Systems

Biomass Energy Technology

Alcohol Fuels R&D

(included under biomass)

Ocean Energy Systems

Solar International Programs

Solar Technology Transfer

Program Direction

Solar Program Support

Solar Energy Research Institute

32,700

13,575

8,375

8,600

17,300

TOTAL, SOLAR ENERGY

86,659

FY.84

Appropriation

FY85

DOE

Request

181,650

163,649

'

--0

0

3,100

3,009

0

0

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Solar Bank Action

For FY84 the Administration again requested zero funding for the Bank..

Once again Congress rejected the request appropriating $25 million instead

(P.L. 98-45), bringing to $67 million the total appropriated for the Bank

through FY84.

Bank funds were allocated but not released to participating States and

territories in June 1983 following publication

of interim rules

and

regulations in the Federal Register (FR May 3 1 , 1983:

24254-24270).

By

mid-November 1983 all of the FY82 appropriation and $9 million

of the FY83

appropriation had been allocated.

Under the interim rules the funds are

being used to provide loan assistance primar4ly to low-income individuals for

eligible energy conservation measures on residential buildings of any size

and passive

solar energy measures

for

one-to-four-family

residential

buildings. The interim rules made active solar energy systems ineligible for

assistance.

-.

At a Jan.

1 1 , 1984 meeting

the Bank board voted

to approve final

publication of the regulation governing operation of the Bank.

The board

also released a total of $48 million through the first two quarters of FY84

to the 4 5 States, DC, and two territories participating in the Bank program.

Another $ 1 8 million will be apportioned during the last two quarters of FY84.

States cannot draw on the Bank's funds until they have reached a cooperative

agreement with the Bank on the use of the funds. As of the Jan. 1 1 meeting,

Only 26 of the participating States and territories had procedures approved

by the Bank.

P.L. 98-181, the Supplemental Appropriations Act of 1984, amended the

Energy Security Act to liberalize some of the restrictions imposed on

recipients and equipment by the interim rules and regulations.

As a result

active solar energy systems, energy efficient air conditioners, and home

98-181

energy audits will be eligible for Bank subsidies.

In addition, P.L.

raised the ceiling on administrative costs which may enable more States t e participate in the program.

It also reauthorized the Bank for F Y 8 5 for "such

sums as may be necessary."

For FY85 the Administration has again requested

Bank.

a

zero

budget

for

the

LEGISLATIVE ACTIVITY

Several major solar bills were introduced in the first session of the 98th

Congress.

Some of these are briefly

described below.

(See legislation

section, below, for a more.complete listing.)

Act

H.R. 1595, the Solar Energy National Security and Employment

(SENSE) of 1983. Bipartisen support was lined up in the 97th Congress by

the Solar

Enfield at 466-6350) and other solar support groups for

Lobby (contact

introduction of the SENSE Act early in the 98th Congress.

In the House the

separate titles

Act was introduced both as a single bill (H.R. 1595) and by

(H.R. 1596-H.R. 1599); i n .the Senate it was introduced just by titles

(S.

616-S. 619).

The Act is intended'to stimulate small solar businesses, extend

and increase renewable energy tax credits, reauthorize the Solar Bank,

establish a national strategic alcohol fuels stockpile, %reate

jobs in the

am

renewable energy fields, and improve the Federal Government's renewable

energy efforts.

Introductory statements appear in the Congressional Records

of February 23 (H604-H6061, February 28 (S1741-S1752),

and Mar.

9 , 1983

(H1103-H1108)

.

H - R e s . 1 3 9 , to restore balance in the DOE e n e r g y . program.

A resolution

introduced with 1 3 0 cosponsors. It calls for the Federal Government t o

demonstrate a comnitment to energy conservation and renewables by restoring

The resolution i s i n response to

balance to DOE'S proposed FY84 budget.

Administration proposed cuts in conservation and renewables for FYB4.

An

explanation of H.Res. 1 3 9 appears in the Mar. 1 6 , 1983, Congressional Record

(H1360-H1361)

.

S. 710/H.R. 1883, passive solar tax credits. This bill provides about a

20% tax credit subsidy ($2,500 maximum credit) to encourage builders t o

incorporate efficient passive solar energy systems in new construction.

Introductory statements appear in the Congressional Records of March 8

(S2300) and Mar. 1 1 , 1983 (E996).

Tax Credit Legislation

A prime objective of solar backers is the increase and extension of tax

credits for solar and other renewable energy property, most of which expire

at the end of 1985. Several bills to this effect are under consideration i n

the House and Senate.

The SENSE Act is a comprehensive bill with several tax provisions.

Title

I extends the business energy tax credits for all renewable . energy

applications through 1990. It also increases the credits for solar, wind,

and geothermal applications to 25%, and the credit for hydroelectric projects

to 15%.

It includes an affirmative commitments provision which allows

projects underway but not completed before the 1985 expiration date to remain

eligible for the credit beyond 1985. . T i t l e IV extends the residential credit

through 1990 and adds passive solar to the list of equipment eligible for the

c.rediL

-H..R-. 13-75-.(aqua) increases the business energy credit to 25% and

it to 1990. It also includes a n affirmative commitments provision.

extends

H.R. 3358 (Shannon) is limited to an affikmative commitments provision f o r

solar, wind, and geothermal systems. It does not increase or extend existing

credits. This bill is similar to S. 1396 but does not make synthetic fuels

projects eligible for affirmative commitments.

S. 1305 (Packwood) is a comprehensive Solar incentives

provisions similar to Titles I and IV of the SENSE Act.

It

affirmative commitments provision. A similar bill (H.R. 3072 been introduced in the House.

bill having

includes a n

Heftel) has

S. 1396 (Domenici) is similar to H.R. 3358 except that it

affirmative commitment provision to synthetic fuels projects.

extends

the

S. I780 (Bumpers) is a redraft of selected non-tax provisions of the SENSE

Act to conform to the jurisdiction of the Senate Energy and Natural Resources

Committee.

H.R.

4 0 7 8 (Heftel)/S. 1939 (Wallop) is a compromise measure to extend

the

tax credits for renewable energy and synfuels.

It pares back

the credit

levels originally sought by the SENSE Act, but Offers considerably more than

the limited-purpose bills (H.R. 3358 and S. 1396).

Summary of Action

Supporters of solar tax increases/extensions had hoped to ride a major tax

bill during the first session of the 98th Congress. Those hopes were dashed

when Congress ajourned without acting on an appropriate bill.

Congressional

and industry support appears to have coalesced around identical bills

introduced by Senator Wallop (S. 1939) and Representative Heftel (H.R. 4078).

These bills were a compromise between the SENSE Act and limited purpose

legislation such as S.

1396

(Domenici).

~ o o k i n g ahead, supporters are

expected to continue their efforts in the second session but are concerned

that .their compromise position may be further compromised by forces opposed

to any measure that can be viewed a s a revenue loser in a time of high budget

deficits.

FEDERAL SOLAR ASSISTANCE PROGRAMS

Over the past several years the Federal Government has promoted

the

commercial introduction of solar technologies through various financial,

educational and informational programs.

Assitance has been made available to

State and local organizations, private business and individuals.

In

addition, State governments and private

sector organizations have become

increasingly active in providing informational and other forms of assistance.

This sectlon identifies some of the major

current Federal assistance

programs by agency. However, because the Reagan Administration is attempting

of the

to reduce Federal involvement -in .energy COmmerCialiZatiOn, many

programs identified are under active review for either termination or

.consolidation into State-administered block grants.

Consequently, the long

term status of many of these programs is uncertain.

For additional

infoxamtion-an t h e s e and other Federal programs, as well a s State and private

sector programs, contact the Conservation and Renewable Energy

Inquiry and

The

Referral Service identified below.

See also, mini brief

83210

Residential Energy Tax Credits.

--

Internal Revenue Service

(Tax Credits)

Limited to 15% of the

Residential Conservation Tax Credit.

spent, or a maximum of $300. Credit available through 1985.

first

$2,000

Residential Renewable Energy Tax Credit.

Limited

to 40% of the first

$10,000 spent, or a maximum

of $4,000.

Credit avdilable through 1985.

Eligible equipment includes solar space and water heating

systems; solar

cooling systems, photovoltaic systems, wind electric generators, and systems

Wood or peat burning

that use geothermal energy to heat or cool a home.

stoves are not eligible.

"Passivev solar systems, such a s roof overhangs,

greenhouses or extra thick walls have been ruled ineligible for tax credits

by the IRS because they serve dual structural functions. Taxpayers use IRS

form 5695 to file for conservation and renewable energy'credits as explained

in IRS publication 903, "Energy Credits for

individual^.^

Business Energy Tax Credits. Solar, wind and geothermal energy equipment

eligible for a 15% tax credit through 1985.

Small-scale hydroelectric

equipment i s eligible for a 10% credit through 1985.

A 10% credit . for

cogeneration and other

specifically defined energy property

such

as

recouperators, heat exchangers and automatic energy control systems expired

in 1082.

HUD (Grants, Loans, Insurance)

Title I:

Home Improvement Loan Insurance.

HUD insures up to 90% of a

conventional home improvement loan made for Structural alterations, repairs

or additions, including installation of weatherization measures and solar

hearing systems. Solar systems must be approved by HUD in advance of

installation.

Section 203: Home Mortgate Insurance.

Insured loans funded through H U D 1 s

Federal Housing Administration

(FMA) lending authority.

Down

payment

requirements may be less than with conventionai loans.

Solar homes meeting

FMA inspection requirements are eligible.

Section 312: Rehabilitation Loans:

Direct loans at low rates for long

terms for the rehabilitation of multi-family

housing.

Energy

conservation

and solar heating installations are encouraged.

Community Development Block Grants/Entitlements

(Large Cities).

Cities

with populations greater than 50,000 eligible -for grants for use in

revitalizing neighborhoods. Energy-related projects, including solar energy

measures, wind conversion and district heating are encouraged.

Urban Development Action Grants.

Similar to community development block

grants but av-ailable to any .ci-ty or urban county which meets certain e c o n o m i c

distress criteris.

Cost sharing required.

Solar Energy and Energy Conservation Bank.

Legislation creating the ~ a n k

Efforts by the Reagan Administration to block the

enacted in--8e80..

imp1ementation:of

the Bank during the 97th Congress were not successful.

Bank assistance became available through State institutions beginning in

early 1983.

Interested parties should contact their State energy offices.

In its initial startup based phase, the Bank

is targeting passive s o l a f

energy systems and conservation loans/grants to individuals whose incomes are

too l o w . t o use the tax credit.

Department of Agriculture

Farm Ownership Loans.

Farmers1 Home Administration (FmHA) makes insured

and guaranteed loans available for the purchase or improvement of farms.

Conservation. and renewable energy systems eligible f.or assistance, including

alcohol distilleries, windmills, wood burning

stoves, solar heaters and

greenhouses.

Rural Housing Programs. Loans or direct grants to low income borrowers in

rural areas to rehabilitate, weatherize or otherwise bring homes above

minimum

standards.

FmHA administers the program and

encourages

the

installation of solar heating systems.

Alcohol Fuels Loan Grant Guarantees.

FmHA loan guarantees for up

of the total cost of large scale facilities for the production of

fuels from farm products, residues, or wood.

to 90%

alcohol

ACTION (Federal Agency for Citizen voluntary Service).

Demonstration Grants Program. Projects which use volunteer services and

focus on the low income community may qualify for direct grants from ACTIONEligible energy-related activities include skill training and disseminating

information on

energy

conservation

and

low-cost

renewable

energy

technologies.

Retired Senior Volunteer Program (RSVP).

Provides meaningful volunteer

$SVP

projects which

opportunities for persons 6 0 years. of age or older.

focus on energy conservation and renewables are encouraged.

Small Business Administration

SBA has established a n energy

energy ventures a s part of the

guaranteed loans available.

loan program

Section 7(a)

to finance small business

loan program.

Direct a n 8

Other Agency Programs and Information Sources

Conservation and Renewable Energy Inquiry and Referral Service.

Formerly

called the National Solar Heating and Cooling Information Center, the CAREIRS

is an inquiry and referral service for questions about energy conservation a s

well as renewable technologies, such as wind, biomass, photovoltaics, solar

thermal, ocean theremal, alcohol fuels, and active and passive solar heating

a

and cooling. CAREIRS will disseminate basic information and provkde

referral service for those requiring extensive, detailed information.-- The

toll-free.telepBone numbers remain the sa'me as they were for NSHCIC.

They

L m , . to 6--p.m. Eastern time.

-are.npen-fro&9

-

- -

-

(800) 523-2929 continental U.S.,

Puerto R I C O

Virgin Islands

(800) 462-4983 Pennsylvania

(800) 537-4700 Alaska and Hawaii

The Mailing address is:

Renewable Energy Information

P.O. Box 1607

Rockville, MD. 20850

Solar Energy Information Data Bank. The SEIDB is intended to serve the

technical community.

It answers technical inquiries, conducts seminars and

workships, provides on-site usage of the comprehensive library collection,

and conducts computerized information services.

Computer services include

modeling and simulation capabilities.

contact:

Solar Energy Research

Institute, 1536 Cole Boulevard, Golden, Colorado 80401 (313-234-7171).

A National Solar Energy

National solar energy education directory.

Eeucation Directory is available from the Government Printing Office at a

cost of $7.00 (ask for publications number

061-000-00537-4).

Published in

May

1981, it lists colleges and

unversities,

junior

colleges

and

vocatinal/technical schools that offer degrees and courses in solar energy

and related fields.

The schools are listed by State.

A solar Energy Technical Education Directory (based on

the

SERI

directory), listing 9 1 post-secondary institutions offering training programs

in technical fields, is available from the Conservation and Renewable Energy

Inquiry and Referral Service.

In addition, CAREIRS has available at no

charge State-by-State educational program listings.

Additional Information

Additional information on these and other Federal and State solar energy

assistance programs is available from the conservation and Renewable Energy

Inquiry and Referral Service. Also, a report entitled w E S C Guide to Solar

Programsw is available from the Environmental and Energy Study Conference of

the House of Representatives (3334 House Annex 1 1 , Washington, D.C. 20515).

LEGISLATION

P.L.

98-50 (H.R.

3132)

Energy and Water Development Appropriation, 1984.

Provides $178.65

million for D O E solar energy programs in FY84.

Reported May

2 4 , 1983

(H.Rept. 98-217).

Passed House June 7 , 1983.

Reported in Senate June 1 6 ,

1983 (S.Rept. 98-1531. Conference report filed in House June 2 8 , 1983

(H.Rept. 98-272).

Final agreement reached June 29, 1983.

Signed into law

-3u-l~-E&-l9 83P-.-L.- 98--45--wR. 3133)

Housing and Urban Development-Independent Agencies Appropriation, 1984.

Provides $25 million to HUD for the Solar Energy and Energy Conservation Bank

i n 1984. Reported May 24, 1983 (H.Rept. 98-223).

Passed House June 2 , 1983.

Reported in Senate June 1 4 , 1983 (S-Rept. 98-152).

Passed Senate amended June 21, 1983. Conference report filed June 2 3 , 1983

(H.Rept. 98-264).

Final agreement reached June 29, 1983.

Signed into law

July 1 2 , 1983.

Amends the Ocean Thermal Energy Conversion Act of 1980 to provide

additional authorizations.

Introduced Feb. 1 0 , 1983; referred to Committee

on Merchant Marine and Fisheries.

H.R. 1595 (Wirth)

(SENSE) Act of 1983.

The Solar Energy National Security and Employment

Amends, extends, and enhances the renewable energy and conservation program

of the U.S. in order to increase employment, promote renewable energy small

business, enhance national security, and displace imported fuels.

Introduced

Feb. 23, 1983; referred jointly to Committees on Ways and Means; Banking,

Finance and Urban Affairs; Energy and Commerce; Small Business; Armed

Services; Agriculture; Education and Labor; and Science and Technology.

H.R.

1596 ( ~ e d e l l /s.

)

6 1 6 (Durenberger)

Renewable Energy Small Business Development Act of 1983. Promote the use

of solar and other renebable forms of energy developed by the private sector.

Introduced in the House Feb. 2 3 , 1983; referred jointly to Committees on Ways

and Means; Banking, Finance and Urban Affairs; Energy and Commerce; and Small

Business.

Introduced in the Senate Feb. 28, 1983; referred to Committees on

Finance.

H.R.

1597 (Dickinson)/S. 617 (Stennis)

Promotes the use of

Renewable energylNationa1 Security Act of 1983.

energy-conserving equipment and biofuels by DOD.

Introduced in the House

Feb. 23, 1983; referred jointly to the Committees on Armed Services,

Agriculture, and Energy and Commerce.

Introduced i n the Senate Feb. 2 8 ,

1983; referred to the Committee on Armed Services.

H.R.

1598 (Jeffords) /S. 6 1 8 (Percy)

Renewable Energy Employment Act. Revises certain Federal training and

economic development programs to create jobs and develop skills in renewable

energy and energy conservation industries.

Introduced in the House Feb. 23,

1983; referred jointly to Committees on Education and Labor, Banking, Finance

Introduced in the

and U m a n Affairs, Energy and Commerce, and Agriculture.

Senate Feb. 2 8 , 1983; referred to the Committee on Agriculture, Nutrition and

Forestry.

H.R.

1599 (Neal)/S.

6 1 9 (Tsongas)

Renewable Energy Consumer Incentives Act of 1983.

Reauthorizes the Solar

Energy and Energy Conservation Bank, extends the residential energy tax

--credits,- eoorclinates Federal energy informational programs,

reinstates

automobile and applicance efficiency labelling standards, and standardizes

PURPA contracts. Introduced in the House Feb. 23, 1983; referred jointly t o

Committees on Banking, Finance and Urban Affairs, Ways and Means, Energy and

Commerce, Science and Technology, and Small Business.

Introduced in the

Senate Feb. 2 8 , 1983; referred to the Committee on Finance.

Renewable Energy Tax Credjt Act of 1983. Extends the energy

tax credit for solar, wind, geothermal, and ocean thermal

Introduced Mar. 2, 1983; referred to Committee on Ways and Means.

investment

property.

Establishes eligibility for the energy tax credit for U.S.

renewable energy equipment employed in beneficiary developing

Referred to Committee on Ways and Means.

produced

countries.

Renewable Energy Industry Development Act of 1983. Gives the Secretary of

commerce the responsibility for developing a comprehensive program

for

identifying strengths and weaknesses in U.S. competitiveness with respect to

the renewable energy industry and developing a strategy for improvement.

Referred to Committee on Energy and Commerce.

H.R.

3358 (Shannon)

Energy Security Tax Incentives Act of 1983.

Provides an affirmative

commitments provision for solar, wind, and geothermal energy property

to

allow projects underway and for which significant work has been done before

the close of 1985 to remain eligible for the tax credits beyond

1985.

Referred to Committee on Ways and Means.

H.Res.

1 3 9 (Ottinger)

A resolution to restore balance in the Federal energy budget.

Mar. 2 3 , 1983.

S. 710 (Hart)'/H.R.

Introduced

1883 (Fowler)

To provide a tax credit to homebuilder for the construction of residences

incorporating passive solar energy features.

Introduced i n the Senate Mar.

8, 1983; referred to the Committee on Finance.

Introduced in the House Mar.

3 , 1983; referred to Committee on Ways and Means.

S. 1305 (Packwood)

Renewable Energy Tax Incentive Act of 1983.

Extends the 40% residential

solar, wind, and geothermal tax credit to Dec.

31, 1990; increases the

business energy investment credit to 25% and extends these credits to Dec.

3 1 , 1990; includes an affirmative commitments provision.

Referred to

Committee on Finance. Similar to H.R. 3072 (Heftel).

S. 1396 (Domenici)

-..

- -. r . . . <

.- -

Energy Security Tax Incentives Act of 1983.

Similar to H.R.

L h a t the a f f 4 z m U v e commit-ments provision

is also- -extended

fuels projects.

Referred to Committee on Finance.

3358 except

to synthetic

S. 1780 (Bumpers)

Solar Energy National Security and Employment Act of 1983. For committee

jurisdictional purposes collects some of the non-tax provisions of the SENSE

Act t o . a l l o w for appropriate hearings to be held.

Referred to Committee on

Energy and Natural Resources.

HEARINGS

U.S.

Congress.

House.

Committee 0.n Banking, Finance, and

Urban Affairs.

Subcommittee on Domestic Monetary Policy.

Hearings .on H.R. 605, to establish a Solar Energy Development

Bank.

Hearings, 96th Congress, 1st session. May 3 and

June 20, 1979. Washington, U.S. Govt. Print. Off., 1979.

208.p.

----- SuBcommittee on Housing and Community Development.

Hearings on H.R. 605, H.R. 4987, and other bills to

establish a solar energy development bank.

Hearings,

96th Congress, 1st session. July 3 0 and Aug. 1 , 1979.

----- Subcommittee on the City and Subcommittee on Oversight

and Investigations of the Committee on Interstate and

Foreign Commerce. Joint hearings on renewable energy in

the city. Hearings, 96th Congress, 1 s t session. Oct. 1 7 ,

1979.

U.S.

Congress.

Committee on Energy and Commerce. Subcommittee

on Energy Conservation and Power. Hearings on Administration

budget cuts in conservation and solar programs.

Hearings,

97th Congress, 1st session. Dec. 1 , 2 , and 3 , 1981.' 1 7 4 p.

----- Jointly with the Committees on Small Business and

Education and Labor. Hearings on the renewable energy

industry.

Hearings, 98th Congress, 1 s t session. June

28, 1983.

U.S.

Congress. House.

Committee on Interstate and Foreign

Commerce. Commerce Subcommittee on Energy and Power.

Hearings on solar commercialization. Hearings, 96th Congress,

1st session. Jan. 1 0 , 1979.

U.S.

Congress.

Hou'se. Committee on Merchant Marine and Fisheries.

Subcommittee on Oceanography. Hearing on H.R. 1381, to amend

the Ocean Thermal Energy Conversion Act of 1980 to provide for

additional authorizations.

Hearings, 98th Congress,

1 s t session. Mar. 7 , 1983.

(In press)

U.S.

Congress. House. Committee on Merchant Marine and Oversight hearing on ocean thermal energy conversions.

96th Congress, 1st session. Sept. 20, 1979.

.-----

Hearings,

U.S.-

Congress. House. Committee on Science and Techonoloy.

Overs-ighf hearings to review Title V of P.L. 95-619,

-#e N . a ~ ~ & -Energyl

Conservation Policy Act (relates to

the conservation and solar energy in Federal buildings, and

the utilization of photovoltaics in Federal facilities).

Hearings, 96th Congress, 1st session.

Sept. 26 and 27, 1979.

U.S..

Congress. House.

Committee on Science and Technology.

Subcommittee on Energy Development and Applications.

Hearings on tax incentives for new energy technologies.

Hearings, 98th Congress, 1st session. July 1983.

U.S.

Congress.

House. Committee on Science and Technology.

Subcommittee on Energy Conservation and Power and

Subcommittee on Energy Development and Applications;

Committee on Small Business. Subcommittee on Genepal

Oversight of the Economy; Subcommittee on Employment

Opportunities. Committee on Education and Labor.

Hearings on the status of the solar energy industry in

America.

Hearings, 98th Congress, 1st session. June 2 8 ,

1983.

(In press)

----- Subcommittee on Space Science and Applications.

Hearings

on H.R. 2335, the Solar Power Satellite Research, Development

and Evaluation Program Act of 1979. Hearings, 96th Congress,

1st session. Mar. 28, 29, and 3 0 , 1979.

.

----- Hearings on the President's solar goal:

one year later.

Hearings, 96th Congress, 26 session. June 1 2 , 1980.

Washington, U.S. Govt. Print. Off., 1980. 210 p.

----- Subcommittee on Space Science and Applications.

Hearings

on solar power satellite. Hearings, 96th Congress, 1st

session. Mar. 28, 29, 30, 1979. Washington, U.S. Govt.

Print. Off., 1979. 342 p.

----- Subcommittee on Energy Development and Applications.

Oversight hearings on the Solar Energy Research Institute

and Regional Solar Energy Centers. Vol. XII. Hearings,

96th Congress, 1st session. Oct. 24 and 25, 1979.

Washington, U.S. Govt. Print. Off., 1980. 4 6 7 p.

----- Subcommittee on Energy Development and Applications.

Hearings on the D O E Photovoltaic Program and the FY81

photovoltaic program authorization request. Hearings,

96th Congress, 2 8 session. Feb. 29, 1980.

----- Subcommittee on Energy Development and Applications.

Oversight hearing on biomass.

96th Congress. 26 session.

~ a r .1 0 , 1980. Washington, U.S. Govt. Print. Off., 1980.

175 p.

----- Subcommittee on Energy Development and Applications and

the Subcommittee on Energy and Power of the Committee on

Interstate and Foreign Commerce. Joint hearings on

national solar energy policy.

Vol. VI.. Hearings, 96th

Congress, 1st session. June 1 4 and 21, 1979. Washington,

U.S. Govt. Print. Off., 1979. 944 p.

- - - .- .

- . -Subcommittees on Energy Development and Applications and on

la-vpsiigations and Oversight-. Joint hearing on U.S. solar

and conservation technologies in international markets.

Hearings, 97th Congress, 26 session. June 3 and 1 7 , 1982.

Subcommittee on Energy Development and Applications. Hearings on

business energy tax incentives for renewable energy resources.

Hearings, 97th Congress, 2d session. July 1 3 , 1982. .

.U.S.

Congress. House. Committee on Small Business.

Hearing

on the role of small business in solar photovoltaic

research and development and the effects of consolidations on

the .industry. Hearings, 96th Congress, 26 session..

July 30, 1980. Washington, U.S. Govt. Print. Off., 1980.

----- Hearing on the SBA Solar Energy Loan Program.

96th Congress, 2d session.

U.S.

Hearings,

Mar. 1 8 , 1980.

Congress. Senate. Committee.on Energy and Natural

Resources. Subcammittee on Energy Conservation and

Supply. Hearings on S. 950, the Omnibus Solar Energy

Commercialization Act.

Hearings, 96th Congress, 1st session.

-

-

June 1 2 and 1 3 , 1979.

1979. 429 p.

Washington, U.S.

Govt. Print. Off.,

----- Oversight hearings on the potential impact of international

applications of renewable energy resources.

Hearings, 96th

Congress, 26 session. Aug. 1 9 , 21, and Sept. 9 , 1980.

U.S.

Congress. Senate.

Committee on Finance.

Subcommittee on

Energy and Agricultural Taxation. Targeted,extension

of energy tax credits. Hearings on S. 1396.

Hearings, 98th Congress, 1st session.

June 20, July 1 8 ,

1983.

U.S.

Congress. Senate.

Select Committee on Small Business.

Hearings on the structure of the solar energy industry.

Hearings, 96th Congress, 1st session.

Dec. 1 1 and 1 2 , 1979.

Washington, U.S. Govt. Print. Off., 1980. 439 p.

REPORTS AND CONGRESSIONAL DOCUMENTS

U.S.

Congress.

House.

Committee on Science and

Technology. A multi-year framework for Federal

solar energy research and development.

Washington,

U.S. Govt. Print. Off., 1983.

75 p.

At head of title:

98th Congress, 1st session.

Committee print.

A historical review of Federal solar policies.

Makes the case for a multi-year, level-funded solar

for a multi-year, level-funded solar R&D program

of $210 million.

U.S.

Congress. House.

Committee on Interstate and Foreign

Commerce.

Subcommittee on Ov-ersight and Investigations.

Solar energy and today's consumer.

Washington, U.S. Govt.

Print. Off., 1978.

119 p.

95th Congress; 26 session.

Committee

At head oY title:

.

-

- -- --

.~ " . p Z i & L &

-

Reviews the problems encountered i n residential

applications of active solar technology.

Examines the

issues of standards, warranties, and Federal involvement in

consumer affairs.

Based in part on an extensive questionnaire

survey of solar consumers.

CHRONOLOGY OF EVENTS

04/12/82

-- Startup of the 10-Mw solar one power tower a t

Barstow, Ca.

-- Solar Challenger, the first solar-powered airplane

C

07/0.7/81

(photovoltaic cells), crossed the English channel.

06/20/79

-- President Carter set forth a national strategy for

accelerating the use of solar and renewable

resource technologies based upon the results of the

Solar Energy Domestic Policy Review, and committed

the Nation to a goal of makig 20% of our energy needs

by solar resources in the year 2000.

05/03/78

-- National observance of "Sun Day" as a day to promote

public awareness of the potential of solar energy a s

The President called

for a Domestic Policy Review of solar energy.

a national energy resource.

10/01/77

-- Department of Energy activated.

03/24/77

-- The Midwest Research Institute, teamed with t h e State

Consolidates

functions of ERDA, FEA and FPC, plus energy programs

from other agencies and departments.

of Colorado, was selected to establish and operate the

Solar Energy Research Institute to be located near

Golden, Colorado.

07/22/76

-- Construction of a 400-kilowatt (thermal) ERDA Solar

Thermal Test Facility began at the Georgia Institute

of Technology in Atlanta.

07/08/76

-- The generation of 32 kilowatts of electricity

by the Solar Total Energy Test Facility a t ERDA's

Sandia Laboratories in Albuquerque, N M , marked

the first significant production of electric power

from a solar-driven turbogenerator.

-- Construction of a 5-megawatt, $21-million solar thermal

test facility 'began at a location near ERDA's Sandia

Laboratories in Albuquerque, NM.

The project includes

a 40-acre field of mirrors and a boiler/test tower

200 ft. hight.

01/19/76

-- HUD announced $1 million in grants for the legis'lation

of solar units in 143 new and existing dwelling units

in 27 States a s part of the ERDA Solar Heating and

Cooling Demonstration Program.

This marks- the Nation':

'first large-scale test of solar energy i n housing.

- -- .---

-

lo/-29/75

-- A 100-kw wind turbine built for ERDA by NASA's

Lewis Research Center was dedicated at Sandusky,

Ohio.

The machine is the largest wind energy system

new in operation and the second largest ever built.

01/20/75

-- ERDA activated; became lead agency for solar R&D.

-- P.L. 93-473 enacted.

10/11/74 -- P.L. 93-438 enacted.

10/26/74

10/00/74

-- FEA Project Independence Report submitted to the

President.

-- P.L. 93-409 enacted.

01/23/73 -- The President announced a $ 5 0 million F Y 7 5 budget for

09/03/74

--

solar energy

an increase of $36 million or 257% over

including R&D on heating and cooling of

1974

buildings and more advanced technologies for central

--

power stations.

12/01/73

-- The President received a long-range energy R&D program

prepared by Chairman Dixy Lee Ray of the AEC.

In the

proposed program solar energy will receive $200 m2llion

over 5 years with an FY75 budget of $35 million.

12/00/72

-- The NSF/NASA Solar Energy Tanel Report wh; published.

00/00/58

-- Solar batteries first used for satellite power.

00/00/54

-- Silicon solar cells developed by Bell Telephone

he report considered every aspect of solar energy

an6 made specific funding recommendations.

Laboratory scientists.

00/00/52

-- A President's Materials Commission indicated a

potential market of 13 million solar heated homes

by 1973.

00/00/41

-- A 1,250-Kilowatt wind-powered generator began 5 years

of intermittent operation near Rutland, Vermont.

00/00/29

-- A 22-kilowatt sea thermal power plant was

successfully demonstrated near Cuba.

00/00/12

-- The first solar power plant operated near Cairo, Egypt.

The plant had a collector area of 13,000 feet,

automatic sun tracking capability, and produced u p '

to 63.0 horsepower.

.

ADDITIONAL REFERENCE SOURCES

Application of solar technology to today's energy needs.

Office

of Technology Assessment.

June 1978.

For sale by

Superintendent of Documents, U.S. Govt. Print. Off.,

SN 052-003-00539-5.

Assesses the technical, economic, legal, regulatory, and

institutional implications of large-scale use of on-site

solar energy, in the framework of the total U.S. energy

problem.

The 2-volume report is organized as a reference

tool for committees involved in national energy policy.

Conservation and Solar Energy Programs of the Department of Energy:

a critique.

Office of Technology Assessment.

June 1980.

For sale by Superintendent of Documents, U.S. Govt. Print.

Off., SN j052-003-00757-6, price $3.75.

Evaluates the progress and direction of a number of

conservation and solar programs to assess the balance and

long-range contribution of these effots, and to discover if

the programs are coherently linked to goals set by Congress

and the Administration.

Council on Environmental ~ual'ity [ ~ x e c u t i v eOffice of the

President].

Solar Energy:. progress and promise.

Washington, for sale by the Supt. of Docs., U.S. Govt.

Print. Off., 1978. SN 041-011-00036-0, price $2.30.

April 1978. 5 2 p.

Summarizes the technical status of each solar technology,

projects ti-ie future impact of solar technologies through

2020, and makes recommendations for accelerating the u s e . o f

solar energy.

U.S.

NSF/NASA Solar Energy Panel. Solar energy as a national energy

resource. 1972. 85 p. Xational Technical Information Service,

Sales Dept., 5.285 Port Royal Road, Springfield, Va.

22151.

(PB221659)

U.S.

Library of Congress.

Congressional Research Service.

Policy Research Division. Handbook of Alternative

Energy Technology Development and Policy. March

1983.

(Report no. 83-43 SPR)

Science

APPENDIX I

. . FEDERAL SOLAR ENERGY RD&D FUNDING

U S

by fiscal year

(millions of dollars)

1974

and

prior

years

1975

1976

1977

1978

(1

1979

(2)

1980

(3)

1981

(3)

1982

20.8

48.0

153.8

285.2

408.1

514.2

542.6

471.8

256.9

Heating and

Cooling

Photovoltaics

Solar Thermal

Biomass

Wind

Ocean Thermal

Alcohol Fuels

0ther*

Program Direction

TOTAL

. * Construction, Capital Equipment, International Programs, Commercialization, etc.

After FY79, Construction and Capital Equipment are included in the budget.line

of each program.

(1)

RD&D funding figures for FY79 and all prior years were provided by Lloyd Herwig, DOE.

(2)

Appropriations as shown in FY82 DOE budget request dacuments.

(3) Appropriations as shown in FY83 DOE budget request documents.