Summary: The decision to use Federal incentives to assist in the commercialization of energy technologies should be preceded by a careful analysis of the technology's state of development, the technology's economic feasibility, and the target group whose actions will be influenced. Senate Bill 419 meets some of these requirements in that it would enable affirmative congressional response through the normal appropriations process for the costly projects which would be authorized. In addition, it would require the Administrator of the Energy and Research Development Administration to consider specific criteria in evaluating a project's economic, social, and environmental viability. The proposed legislation could be improved if it were amended to (1) emphasize demonstration of smaller than "commercial-size" plants, (2) provide criteria to choose projects and processes, and (3) consider several alternatives to selling the demonstration facilities when demonstration is completed. Furthermore, Section 304 of the bill should be reconsidered since other legislation has already been enacted which provides Federal assistance to State and local communities which can be used to mitigate socioeconomic impacts resulting from energy resource development. Adoption of these proposed amendments would result in stronger legislation for oil shale development. However, a more preferable approach would be to pass legislation which encourages the development of emerging energy technologies based on an overall assessment of all such technologies.
