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We have mentioned that specific feedstocks will be required for each petro-chemical operation. Exhibit 2 indicates projections that have been made reflecting some estimates of feedstock use in ethylene production. We believe that even more of the growth will have to come from naphtha and gas oil as LPG looks increasingly as though it will be priced out of the market.

It is very important, therefore, that any allocation program includes adequate provision for these two materials which will be the keystone of growth for this vital industry.

While these materials will have a vital importance for the country's future, they represent only some 5 or per cent of the oil run to refineries in the production of petroleum products.

Gulf's proposed new ethylene plant will take a gross

of roughly 4% of our refinery runs, but between 25% and 40%
will be returned as petroleum products making the net requirement
about 3%.

We feel that it would be impractical to solve allocation problems by cutting back on such a small but vital end use area.

THE NEED FOR A NATIONAL MATERIALS POLICY

THURSDAY, JULY 18, 1974

U.S. SENATE,

COMMITTEE ON PUBLIC WORKS,

SUBCOMMITTEE ON ENVIRONMENTAL POLLUTION,

PANEL ON MATERIALS POLICY,

Washington, D.C.

The Panel met at 9:30 a.m., pursuant to recess, in room 4200, Dirksen Senate Office Building, Hon. Jennings Randolph (chairman of the full committee) presiding.

Present: Senators Randolph, Baker, Stafford, and Domenici.

Senator RANDOLPH. A pleasant morning to all of you who are with us for the 7th day of these hearings.

We have as our first two witnesses Mr. Quarles and Mr. Strelow of the Environmental Protection Agency, if they would come to the table, please.

Members of our special Panel on Materials Policy are gratified to have these witnesses.

Mr. Quarles, if you would identify yourself for the record and what background material you think would be helpful before your statement is given.

Mr. Strelow, you are not yet confirmed but your words will be appreciated.

STATEMENT OF JOHN R. QUARLES, DEPUTY ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY, ACCOMPANIED BY: ROGER STRELOW, ACTING ASSISTANT ADMINISTRATOR FOR AIR AND WASTE MANAGEMENT

Mr. QUARLES. Sir, I am John Quarles, the Deputy Administrator of the Environmental Protection Agency. Mr. Roger Strelow is the Acting Assistant Administrator for Air and Waste Management.

We appreciate this opportunity to appear before you today to discuss the management and disposal of the increasing quantities of solid waste discarded across the Nation and the recovery of valuable resources from this ever-growing supply of waste materials.

This is my first appearance before this Panel since its establishment in May of this year. We at the Environmental Protection Agency look upon the formation of the Panel as the reflection of an increasing national concern for the need to develop a wise policy of resource conservation and careful use and reuse of materials, particularly in the face of our burgeoning rate of energy and materials consumption. (1065)

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