Summary: The Nation has experienced difficulties in coming to grips with the energy problem, and the Department of Energy (DOE) and its top officials have been much criticized. There are several factors which have contributed to the difficulty which DOE faces in the energy policy decisionmaking process. These include managerial problems inherent in trying to create a major new cabinet department and the lack of a national consensus on energy. Four broad categories of problems in DOE have been identified as: (1) the absence of a clear and consistent policy perspective; (2) a lack of systematic planning for many approved programs; (3) problems in coordinating the activities of DOE with other Federal agencies; and (4) management and organizational concerns. Problems which specifically affect energy conservation are: (1) a lack of overall energy conservation planning; (2) problems of leadership and coordination in Federal in-house efforts to conserve energy; and (3) delays in carrying out congressionally mandated energy conservation programs, particularly contingency programs. A number of studies have provided convincing evidence that substantial opportunities for energy conservation exist in all four of the major energy consuming sectors: residential, transportation, commercial, and industrial. Perhaps the most important needs are to: set a clear policy perspective for addressing the energy problem, set goals and specific objectives to be accomplished, design programs which can meet within a given time frame the established goals and objectives, and monitor progress and make adjustments to the programs as needed.