(3 of 7)
SOLAR ENERGY. Homeowners would receive a 40% tax credit on the first $1,000 spent for solar-heating devices and 25% on the next $6,400. There is much, much more. The plan includes provisions requiring utilities to change their pricing methods—eliminating discounts for big users and offering discounts to customers who burn "juice" in off-hours. In a bow to environmentalists, Carter declared that there would be no relaxation of clean-air standards, even though the Administration hopes to increase coal production nearly two-thirds by 1985 to more than 1 billion tons a year. Instead, utilities and factories converting to coal would be required to make large investments in "scrubbers," which remove harmful chemicals, and other antipollution devices.
The program delves into some minute details: a requirement for separate meters in all new apartments, rather than a single large meter for an entire building, for example. There were a few omissions, notably any mention of developing mass transit as a means of saving fuel. Carter's explanation: "This is a separate item that will be handled under the Transportation Department." But on the whole, Carter fulfilled his promise to make his plan comprehensive.
Its goals are also quite specific. The three main ones: 1) to cut growth in U.S. energy demand to less than 2% a year by 1985, from the nearly 3% it otherwise would have been expected to reach and 6% now; 2) to reduce gasoline consumption by 1985 10% under this year's expected level of 7.2 million bbl. a day; and 3) to reduce imports of foreign oil to 6 million bbl. a day eight years from now (they averaged 7.2 million bbl. a day last year, and Carter estimated that they could grow to 16 million bbl. daily by 1985 if nothing is done).
White House attempts to explain and justify the program had their moments of confusion. As the week went on, the tone of Administration statements vacillated. The first White House "fact sheet" on the plan asserted that the energy program would create 100,000 new jobs by 1985 and make economic growth a bit faster than it would be otherwise. Later, Budget Director Bert Lance said the program would have no effect one way or the other on growth (some outside economists fear it would slow growth a bit).
The President himself calculated the amount that one family might receive in gasoline-tax rebates. In fact, the Administration at first implied that all of the money raised by gasoline and crude-oil taxes would be returned to the public through tax credits. But then on Friday the President said, "I can't certify today that every nickel of the taxes collected will be refunded to consumers."