Executive Report

Thompson takes the plunge on energy

OUTLINING his energy policy, Gov. James R. Thompson may be one of the states' strongest Republican voices in the middle of the Democrats trying to solve the national energy problems.

Thompson emphasized balance between competing interests of consumers, businessmen, farmers and environmentalists. As he put it more pungently in another context, "Progress and the environment can be made to walk hand in hand even if it requires a shotgun wedding." Other key elements of Thompson's program are compatibility with federal energy policy, heavy state input into federal policy and cooperation between himself and the legislature. His proposals also reflect his determination to hold to his austere budget and to move cautiously on ambitious or expensive programs until the facts are in.

Energy conservation
Generally favorable to President Jimmy Carter's comprehensive energy policy, Thompson backed the President's proposal for a standby tax on gasoline. He emphasized, however, that the states must get a 40 per cent rebate on tax revenues to pay for highway maintenance. The Carter program ended any prospects for an increase in state taxes to pay for roads. Illinois' Republican governor also believes that if the price of gas goes up too high, the country may have to take a look at gas rationing in order to avoid creating a "two-class society."

On the state level, Thompson has proposed the Energy Conservation Act of 1977 (S.B. 1328), introduced by Sen. John Nimrod (R., Park Ridge). If passed, it could save more than 5 per cent of the energy now used by the state and make Illinois eligible for federal aid for energy conservation programs. Provided for specifically in the bill are federally approved standards for local building codes to save heat and light. These would apply to most new buildings and would be enforced by local governments through their own building codes. The bill would also reduce waste in lighting public buildings and would change equipment purchase procedures so energy efficiency, not just cost, are considered when state or local governments buy equipment.

Thompson also said he would sign at least 14 bills proposed by the Energy Resources Commission if the General Assembly passes them. Among these are H.B. 1748 amending the Solar Devices Property Tax Incentives Act to include water heating and grain drying systems; H.B. 1512, a Solar Easement Act, protecting property owners' access to sunlight and H.B. 1560, the Home Insulation and Financing Act, authorizing the Illinois Commerce Commission (Ill. CC) to allow utility companies to provide home insulation and finance programs for residential customers to conserve energy.

Energy resource development
To guarantee natural gas, Thompson is working with the Illinois congressional delegation and other Midwestern governors to win federal approval of a direct pipeline route for Alaskan natural gas which would terminate in Illinois.

Thompson has ordered his "energy sub-cabinet" composed of the directors of the department of Business and Economic Development (BED), Mines and Minerals, the Environmental Protection Agency (IEPA), the Institute for Environmental Quality and the chairman of the 111. CC to come up with a comprehensive Illinois coal policy.

He has given his full support to the development of coal gasification plants in the state funded by private, state and federal funds (see November 1976, p. 16). At present Coalcon's gasification project at New Athens has been halted for reevaluation by the Federal Energy Resource Development Administration because of difficulties in the process known as "caking." The Illinois Coal Gasification Group project in Perry County has a Phase I contract from the federal government and could receive full funding. Federal approval for the Powerton Coal Gasification project near Pekin is expected soon. A test facility, the project will use high sulfur Illinois coal to produce clean gas to generate electric power.

Indicating his priority to develop Illinois coal production, Thompson is urging more federal research on coal antipollution technology. On the state level, he directed the BED to use Illinois coal bonds for projects that would get results quickly by demonstrating new technologies to industries for using Illinois coal.

Thompson does not want Illinois strip mining laws to be tampered with and backs an amendment to Pres. Carter's strip mining legislation that would allow coal companies in Illinois and other eastern states to retain their choice between reclaiming strip mined land or restoring it to its original condition.

Other steps to promote immediate use of Illinois coal include identification by the IEPA of sites where utilities can burn high sulfur coal without violating federal ambient air standards. (These limit the amount of sulfur dioxide and other pollutants allowed in the air in a given area.) In addition, Thompson wants action by the Pollution Control Board on amendments to the state's emission standards for existing coal burning facilities. Emission standards limit the amount of pollution that can come from a given source over a period of time. Plants built after 1972 are under federal emission standards. The proposed amendments would not violate air quality standards but would provide for more flexible emission regulations, making it easier — and legal — to burn more Illinois coal. However, allowing air pollution to rise to federal levels could promote a no-growth economy in Illinois, according to Frank Beal, director

Self-service gas

STATE fire regulations have been changed to allow the operation of self-service gas stations in Illinois, effective May 1, 1977. Rather than wait for legislation to be enacted, the governor approved the recommendations of Tyrone C. Fahner, director of the Illinois Department of Law Enforcement, that the Illinois Fire Marshal's regulation be amended to allow self-service stations; the Department of Law Enforcement is the agency responsible for enforcing the new regulations.

Illinois is the 48th state to permit the self-service stations, and Gov. Thompson said that the state will enjoy an increase in revenue of anywhere from $4 million to $6 million since motorists will no longer be forced to cross-state boundaries for self-service gas.

A study prepared by John H. Jones, research associate with the Illinois Legislative Council, indicates that the price of gasoline at self-service pumps is 2 cents to 5 cents lower than at conventional pumps. The report, requested by House Resolution 897 of the 79th General Assembly, evaluates the effects of self-service stations in other states and apparently answered the economic and safety concerns of businessmen and law enforcement officials./ T.S.


June 1977 / Illinois Issues / 27


of the Institute for Environmental Quality, because there would be no leeway for new industries to open without violating federal air standards.

On the legislative front the governor proposed the Power Plant Siting Act (S.B. 1327) introduced by Sen. David Shapiro (R., Amboy) to create the Power Plant Siting Board. The interagency board would speed up the process of approving sites for power plants, including nuclear plants. The act would also provide that nuclear plants cannot be placed unnecessarily close to concentrations of people.

Thompson believes that the state should encourage the development of solar power and other alternative energy sources, but the feds should bear the cost.

Commerce Commission reform
Included in the governor's 1978 budget is a 14 per cent increase in funds to strengthen the Ill. CC's managerial and technical capabilities. Within his own Office of Manpower and Human Development, Thompson intends to create a Utility Consumer Advocate. The office, which would be funded by federal money, would systematically explore utility rate increases.

Amendments to the Public Utilities Act proposed by Thompson were introduced as S.B. 1326 by Sen. Prescott Bloom (R., Peoria). Provisions to help consumers include hearings where the public could present testimony and consumer rights to intervene in rate case hearings. Utilities would be prohibited from passing on the cost of general image advertising to consumers. The Ill. CC would also be required to establish performance standards for the way utilities handle complaints about service. Directed at better regulatory practices were provisions to authorize the commission to require management efficiency studies of utilities; to establish a Division of Hearing Examiners independent of the commission's technical staff for impartial hearing of rate and service cases, and to create a Policy Analysis and Research Division to recommend general rate-making principles, and to eliminate the dollar ceilings on appropriations from the Public Utility Fund to allow the Ill. CC more flexibility.

Energy Resources Commission legislation that would allow the Ill. CC and the BED to collect reliable data on energy supplies, has the governor's backing provided there is an amendment authorizing him to coordinate the process.

Waiting to see what happens on the federal level, Thompson is not submitting any legislation for reorganization of state agencies involved in energy. His energy sub-cabinet is charged with developing a reorganization plan with input from public hearings scheduled on state reorganization (see Calendar, p. 32)./ M.S.K.

28 / June 1977 / Illinois Issues


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