FROM THE CONGRESSIONAL RECORD SENATE s8668 Questions and Policy Issues In your judgement, what research and development programs would expedite attainment of the objectives of a national policy to promote greater coal utilization and the National Petroleum and Natural Gas Conservation and Coal Substitution Act of 1975? What should be the relative priorities among these programs? Answer: Current projects underway for the development of fluidized bed boilers, gasification of coal and the solvent refining process should be vigorously pursued and expanded. Additional research should be invested in the development of these processes and their availability expedited for meeting current and projected fuel demands. A national calamity could be avoided and the effects of a fuel oil embargo reduced if these were currently available. FROM THE CONGRESSIONAL RECORD SENATE Questions and Policy Issues s8668 Question No. 39 What is the potential cost of and anticipated time schedule for the various synthetic hydrocarbon liquid and gaseous substitutes for natural gas and oil from coal which could serve to foster a national policy to promote greater coal utilization? Answer From information available in industry published reports, systems for the gasification and the synthetic hydrocarbon liquid production from coal processes, will not be available in the immediate future. Figures covering costs indicate that the fuel cost will be higher than the current prices for gas and oil. This questions should be referred to the coal industry. What are the anticipated efforts of a national policy to foster greater coal utilization on consumer costs for electricity as well as other goods and services? Answer It can be anticipated that an enforcement of a national mandate for greater coal utilization will result in an increase in consumer rates, proportional to the expenditures involved. Based on current figures of estimated costs for providing the equipment necessary for coal conversion, additional manpower required to operate and for maintenance of a coal burning facility, we can foresee no way that consumer rates can be maintained at present levels. Potential increases in the price of coal may be expected because of shortages that may be created by the increased demand for coal. Because of the greater use of coal, larger capital investments will be required on the part of the coal industry for the exploration and development of more coal mining facilities, to meet the demands by industry. The prices charged for goods and services will reflect the corresponding rate adjustments charged for electric power. The costs for raw materials and the manufacture of finished products will also be affected by the rate increases. |