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Executive Report

Energy reorganization by executive order

The first executive order of the second year of Gov. James R. Thompson's administration was issued March 31. The order transfers the energy powers of the Department of Business and Economic Development and its Division of Energy to a new agency, the Illinois Institute of Energy and Environmental Resources. The reorganizational move is "aimed at bringing the state's energy and environmental efforts into a working balance," Thompson said. He cited the state's dependence on coal sales and a decision by Commonwealth Edison to stop burning high sulfur Illinois coal because of technical problems in its scrubbers, as examples of the conflict between energy and environmental concerns that must be addressed by the new agency. In addition, the institute will attempt to manage energy allotments when shortages occur, keep a healthy economy with adequate fuels, conserve energy and develop new energy sources and technology.

The reorganization accomplished by Executive Order Number 1 is allowed under Article V, Sec. 11 of the state Constitution for agencies in the executive branch. The order takes effect July 1, 1978. Thompson's reorganization in this case goes against the recommendations of a task force headed by Donald R. Bonniwell on reorganization, which advised that all environmental functions be consolidated under a single agency.

Commonwealth Edison's coal decision In the wake of Commonwealth Edison's decision to switch to western coal, Gov. Thompson announced on March 31 a series of public hearings on the impact of the decision and the formation of a clean air commission — which generated some political fallout of its own. Exercising his authority under the 1977 amendments to the Federal Clean Air Act, Thompson called the hearings to determine the economic and employment effects if Edison's Powerton Plant near Pekin carries out its plans to stop using high sulfur Illinois coal as of January 1979. (Since the Powerton Plant uses 7.5 per cent of the state's total coal production, the impact could be catastrophic.) In a letter to the General Assembly, Thompson said that if necessary he could (with the consent of President Jimmy Carter) order the company to continue using Illinois coal. This would not exempt it from complying with sulfur dioxide standards. Larry R. Eaton, a Chicago attorney with experience in environmental law, was named by the governor to conduct the hearings which should be completed in August. Plans are to hold hearings in the Chicago area where Powerton customers live and in the downstate area where the coal is mined (Monterrey Coal Co.'s No. 1 Mine, Macoupin County, and Southwestern Illinois Coal Co.'s Captain Mine in Perry County.) Thompson appointed Chicago attorney Richard Babcock as chairman of the Governor's Commission on the 1977 Clean Air Act Amendments (see Names, p. 31), but state Sen. Vince Demuzio(D., Carlinville) was angered that no elected official of Macoupin County or representative from Monterrey or Southwestern coal companies was named to the commission. Instead, Thompson appointed Demuzio's Republican opponent in the November elections, Milton Hocking, mayor of Jacksonville in nearby Morgan County. According to Frank Beal, director of the Institute for Environmental Quality, the purpose of the clean air commission had been misunderstood. The commission was planned before the Edison decision (though the company's announcement may have speeded things up) and was not charged, said Beal, with examining the company's decision. The commission will study many other controversial features of the clean air amendments, including auto emission regulations, Beal said, and will give guidance on the management of clean air legislation and its impact — both good and bad — throughout the state. According to Beal, appointments to the commission were made by consulting business, labor and civic organizations to get statewide representation. A representative from Peabody Coal Co. was named at the suggestion of the Illinois Coal Association. All elected officials will have a chance to testify on the Edison decision, "but nobody is working on the Commonwealth Edison case except the governor," Beal said.

June 1978/Illinois Issues/29