Summary of the Report of

The House Interim Committee on Energy and Environment

Representative Maurice Lawson, Chair

December, 2001

Recent volatility in prices for gasoline, electricity, and natural gas, uncertainties in some fuel and electricity supplies, and the recent crisis in California have focused the nation’s attention on energy issues. Selected environmental issues are also common topics for discussion. The committee recognizes the complexity of many energy and environmental issues and recommends the following actions:

Federal and State Energy Policies: Reliable energy supplies are imperative for economic growth. Lack of a national energy policy makes the country vulnerable to economic insecurity and demands from foreign energy sources. The federal government should develop a bipartisan national energy policy that specifically outlines objectives. The state, in turn, should develop a state energy policy that follows guidelines enumerated in the federal policy.

Future Energy Demands: Development of facilities for generating and distributing electricity has not kept pace with demand. Energy conservation and use of alternative energy sources is important, but will not be sufficient to fully offset the need for new transmission networks and generation facilities that use traditional fuels. The state should develop and implement incentives for construction of generation facilities that use a diverse mix of fuels and an efficient, cost-effective transmission network.

Energy Conservation: Energy conservation measures have been shown to be cost effective, good for the environment, and capable of displacing some of the need for new energy sources. The development and implementation of energy conservation measures should be continued and encouraged when the measures can be accomplished in a cost-effective manner. The federal Corporate Average Fuel Economy (CAFE) standard for vehicles should not, however, be tightened beyond current criteria.

Alternative Fuels: Alternative transportation fuels like ethanol and biodiesel have demonstrated their potential to improve rural economies, reduce pollution, and decrease our dependence on foreign energy sources. Other alternative energy sources may become viable in the future. Full development, production, and use of cost-effective alternative energy sources will take time and require financial incentives. The state should continue to implement incentives for development of alternative fuel sources, especially for fuels made from in-state renewable sources.

Air Quality at Fort Leonard Wood: Fort Leonard Wood’s training missions are vital to the nation's military preparedness, and to the economy of the state. Current conditions imposed by the fort’s air quality permit do not allow adequate training. The Missouri Air Conservation Commission should develop appropriate permit modifications to allow personnel to receive necessary training while reasonable environmental protection for the region is maintained.

Terry Finger, Senior Legislative Analyst