Although it is essential that the Nation reduce its dependence on imported
fossil fuels and complete the transition to reliance on domestic renewable
sources of energy, it is also important that this transition be
accomplished in an orderly, economic, and environmentally sound manner. To
this end, the Administration has launched several initiatives.
Leasing of oil and natural gas on federal lands, particularly the outer
continental shelf, has been accelerated at the same time as the
Administration has reformed leasing procedures through the 1978 amendments
to the Outer Continental Shelf Lands Act. In 1979 the Interior Department
held six OCS lease sales, the greatest number ever, which resulted in
federal receipts of $6.5 billion, another record. The five-year OCS Leasing
schedule was completed, requiring 36 sales over the next five years.
Since 1971 no general federal coal lease sales were suspended. Over the
past four years the Administration has completely revised the federal coal
leasing program to bring it into compliance with the requirements of 1976
Federal Land Planning and Management Act and other statutory provisions.
The program is designed to balance the competing interests that affect
resource development on public lands and to ensure that adequate supplies
of coal will be available to meet national needs. As a result, the first
general competitive federal coal lease sale in ten years will be held this
month.
In July 1980, I signed into law the Energy Security Act of 1980 which
established the Synthetic Fuels Corporation. The Corporation is designed to
spur the development of commercial technologies for production of synthetic
fuels, such as liquid and gaseous fuels from coal and the production of oil
from oil shale. The Act provides the Corporation with an initial $22
billion to accomplish these objectives. The principal purpose of the
legislation is to ensure that the nation will have available in the late
1980's the option to undertake commercial development of synthetic fuels if
that becomes necessary. The Energy Security Act also provides significant
incentives for the development of gasohol and biomass fuels, thereby
enhancing the nation's supply of alternative energy sources.