Using the most effective and efficient means of energy conservation and solar energy technologies will require higher initial costs than with conventional building design. For this reason, section 6, subsection (a) addresses the adjustments that must be made in procurement procedures to accommodate the increased initial costs accrued through utilization of non-conventional energy-saving design or equipment. This is an important feature of the bill, for it is fundamental to the new orientation that must be given to building procurement policies. If we remain tied to the old philosophy that initial costs are the sole basis of cost comparisons for building construction, then by default we exclude energy use analyses based on the benefits and costs of longterm life cycle costing.

It is only over the economic life of a building that the advantages of energy conservation measures and the use of solar energy will prevail over low initial cost conventional systems.

The appropriations section of the bill was intentionally left blank so as to allow the committee maximum flexibility in determining dollar figures recommended by testimony. I have no specific suggestions for these figures but I would encourage the committee to be generous in its recommendations so that the objectives of this legislation can be aggressively pursued.

Several agencies have already developed factual data to support this Federal buildings program. In testimony before the House Committee on Science and Technology this May, FEA Administrator Frank Zarb stated that a government buildings project should be implemented which requires an assessment of the feasibility of using solar heating and cooling.

This assessment, he said, should be made on the basis of a life cycle. analysis and, where appropriate, substantial numbers of solar heating and cooling systems should be purchased and installed on new and existing buildings.

Mr. Zarb went on to state that the same type of energy use analysis called for in this legislation would cost less than 0.1 percent of the total cost of construction. This small percentage could be easily recouped by application of energy conservation measures alone.

An FEA working paper on the subject states that the use of solar energy systems in Federal buildings could result in energy savings of 20,000 barrels per day by 1980. And I understand that FEA has now developed a comprehensive implementation plan for Federal buildings as part of its Federal energy management project.

I am sure that Mr. Sant, of FEA, will testify regarding the details of this project in hearings scheduled for tomorrow.

Other agencies are also interested in applying the most efficient means of energy use to Government buildings. The General Services Administration has recently revised a handbook published in 1974 to assist architects and engineers in designing energy-saving measures for Federal buildings. And this year GSA published a similar handbook which would apply to existing buildings.

The Department of Defense, which has jurisdiction over the largest number of federally owned buildings, is in the process of revising construction criteria along the same lines as the GSA handbook. Whether these guidelines would meet the intent of Section 4 of the bill

is not yet determined, but the actions by these agencies show their willingness to pursue the goals of energy conservation.

Both GSA and DOD are in the process of making existing buildings less energy intensive through energy conservation retrofit programs and, in some cases, they are experimenting with solar energy_equipment. This bill would be a logical progression to the full-scale adoption of energy conservation and solar energy in buildings under their control.

Most importantly, the effect of this legislation is not that buildings owned and operated by the Federal Government would be using conservation measures and solar equipment and saving money as a result, but that activity on the part of the Government would stimulate the market base for energy conservation technology and solar energy systems. This would be of particular benefit to the solar industry, now in the very basic stages of development.

The solar energy industry is looking for buyers to promote mass production capacity, and the large-scale procurement power of the Federal Government could provide the impetus needed to develop that industrial capability.

Once the cost of solar collectors are substantially reduced through mass production, not only will they be far more economical than conventional energy systems but will be more attractive to the consuming public.

The purchase of solar energy equipment by the Federal Government not only would provide the foundation for a dispersed market for these systems, but would also make information available to the private sector on installation procedures, maintenance techniques, architectural design and construction methods.

Solar heating and cooling systems would be given wide national exposure and the operation and installation of this equipment would provide commercial capability for involved technical services.

I will not dwell on the benefits that could be accrued to our Nation as a result of this program. I will let the testimony of the experts invited here supplement what I have briefly outlined.

I would only hope that the committee sees fit to pursue the kind of aggressive formula embodied in this legislation. The Federal Government must take an active role of leadership in showing the way to applying solar energy and energy conservation technology to all buildings.

It is this kind of commitment that must be undertaken nationally, in both public and private sectors, if we are to make a significant contribution to the resolution of our energy, environmental, and economic crises.

I am encouraged to see that this committee is holding hearings on legislation which relates to these issues and I am sure that you will act quickly on this important legislation. I would be glad to answer any questions you might have on this bill.

I might add, Mr. Chairman, that coming from one of the States of the Union which has developed more national leadership and more experimentation in both the public and private sector than almost any other part of the country, I feel very strongly about the future of solar technology for our Nation.

I am hopeful that we in the Federal Government can do all we can, as this bill intends to encourage the initiative and industry that is being demonstrated by individuals, not only in my own State, but across the country, to bring this sources of energy to the American people.

I would be glad to try to answer any questions you might have.

Senator MORGAN. Thank you very Senator Hart, for your very clear and concise explanation of the bill. I don't know how much time you have. I have a good many questions. Those that we can't get to, we will discuss with your staff.

I would quite frankly be interested, Senator, in knowing of some of the solar heating systems that may be working in Colorado. I have heard and read a lot about them, but everything seems to be in the abstract. Are there solar heating operations in the State of Colorado that are working?

Senator HART. Senator Morgan, I had a rare opportunity several months ago to help dedicate what I believe is the first commercial facility anywhere in the country to be primarily heated and cooled by solar energy. It is the Gump Glass Co. in Denver, opened in July. This exemplifies that people are not only experimenting with their own homes, but business people, who have to make a profit are now seeing that over a long period of time they can, in fact, save money. Life-cycle costing is a fundamental principle in this piece of legislation. For it is this type of costing-amortizng the cost of the equipment over the life of a building that can save money because of the increased fuel costs that now face this Nation.

We also have the Air Force Academy, as you know, in the State of Colorado just outside of Colorado Springs. The Superintendent of the Academy, General Allen, tells me they have a home at the Academy where cadets are using an experimental residential unit heated and cooled with the use of solar energy. They are very excited about the opportunity this presents the Academy.

We have a great deal of experimentation and development going on, on other campuses, particularly Colorado State University, and the University of Colorado. Prof. George Löf, of CSV, is one of the international experts and pioneers in the area of solar technology.

We have architects and other people around the State who have put solar units on their homes. I have visited many of them.

I promised the use of solar technology in my own campaign and, in fact, held a reception for former Secretary of Interior Stewart Udall, in a solar house.

So, in my State alone, individuals have demonstrated as was demonstrated on the Capitol steps several weeks ago, that this is technology which is here now. It is not something we have to wait forpeople have conquered the technology. Now it is just a question of creating a mass market.

Senator MORGAN. In order to sell the idea, are we going to have to take into consideration the life-cycle costing of a building to justify it? Senator HART. That is a crucial element as I mentioned in my prepared remarks. If you look at the cost of solar equipment versus conventional heating and cooling equipment now, there is no question that the solar equipment is more expensive.

However, what has to be taken into account are all of the cost factors integrated into the life of a building and including the savings in energy realized from using solar energy. It is also important to include in your decisions about this legislation, and other related legislation, the related benefits that I have mentioned such as a reduction in pollution and the financial and social costs that pollution causes in our country.

Also, the increased national security realized from less reliance on imported oil and preservation of fossil fuels. All of these elements, though difficult to quantify are factors we have to think about in solving the energy problems of this country.

Senator MORGAN. If you have the time, let me go over what I consider to be a summary of your bill. I think it is important as we consider these bills that we keep in mind what each one will do. If we don't have time for the questions we have prepared for you today, we will work out a time for you to come back.

The first thing I understand your bill does is it directs the Administrator of GSA and the Secretary of Defense in consultation with each other to develop and to publish consistent guidelines, assuring that the most effective and efficient energy conservation measures are incorporated into the design, construction, renovation, and operation of not only Federal buildings, but federally assisted buildings.

So your bill involves the GSA Administrator and the DOD Secretary. Is that correct?

Senator HART. That is correct.

Senator MORGAN. When you say federally assisted buildings, Senator Hart, how far does that go?

Senator HART. On one hand, we are talking about leased buildings, particularly buildings under long-term lease where the amount of financing involved makes sense for the Federal Government to consider energy conservation measures in negotiating a lease.

We are obviously not talking about short-term rentals or anything like that. But it is my understanding that the Federal Government does involve itself in considerable long-term leasing.

If the effect of that lease is over a long enough period of time, it makes financial sense to look at energy conservation measures. Senator MORGAN. You are talking about buildings that are also not only federally assisted but will also be federally occupied? Senator HART. Yes, sir, that is correct.

Senator MORGAN. So we can't read into it, that because the Federal Home Loan Bank Board may assist through loans, we are talking about this kind of thing?

Mr. MCCABE. Mr. Chairman, in certain instances-for example, on university campuses where a large portion of a building is funded by the Federal Government-the terms of Federal assistance in this act would apply. We would want these buildings to be included under the provisions of this legislation.

Senator MORGAN. In other words, if we get a medical center funded at some university, primarily through Federal funds, the building might be covered. I don't know whether that is spelled out or not, but by raising the question, the staff will work on that.

That is the first point as I see it. The second point is that guidelines shall be developed in accordance with the energy-related studies and

findings of ERDA and the Federal Energy Administration. So it involves not only DOD and GSA, but also the two agencies that are primarily concerned with energy, FEA and ERDA.

Senator HART. That is correct, in that they can contribute through their ongoing studies in energy conservation measures and solar energy. What we want to do is mesh the findings of the purchasing agencies of the Government with those studies being conducted by the energy research agencies.

Senator MORGAN. By directing that these guidelines be developed together, you intend to eliminate this duplication that might come in. Senator HART. Absolutely.

Senator MORGAN. The third point, as I see it, is it directs that these guidelines incorporate the use of solar energy systems into the design, construction, and renovation of such buildings.

Senator HART. Yes; that is correct.

Senator MORGAN. I assume you are saying that we should incorporate these. Suppose you determine that a solar system in a given building at a given location might not be practical. What would be the result?

Senator HART. Obviously, the legislation would not mandate its use. It is only where it makes sense in the long-term costing of the building. The costs of heating and cooling that building and whether it would be feasible to install solar equipment would be considered in the design and procurement phase.

If, according to the guidelines to be developed, it made no sense for one reason or another, it wouldn't be mandated. For example, if it were in a part of the country where there was not enough sunlight, or ample thermal units could not be generated by the use of solar energy, it wouldn't be practicable to have solar equipment in that area. Senator MORGAN. So the use of solar equipment wouldn't be mandated there.

Senator HART. It would not.

Senator MORGAN. Have you been back to the building that was dedicated in Colorado, to see how it was working?

Senator HART. I haven't, but I am going to go back this winter and see how it works in the Colorado cold.

Senator MORGAN. Are you going to carry an overcoat with you? Senator HART. No. I think they knew what they were getting into because they are very practical business people.

Senator MORGAN. I am very interested because I know that many people are working on them. A friend of mine in this area has developed a home system.

I agree with you. I think the Government is going to have to show some interest and give some help before we can ever make it economically feasible.

Now we get down to the third part. It directs that guidelines developed by the Defense Department shall apply to all new and existing buildings and related procurement activities under the jurisdiction of the Secretary and appropriate military departments.

I take it you intend to make sure they don't just do it with new buildings but with all facilities they have anything to do with.

Senator HART. Yes. That is correct. As I said in my opening remarks, one of the reasons we targeted the Defense Department is that they

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