The first priority of the Congress, as far as I am concerned, should be the rapid passage of the energy reform legislation. Later on this year, we will also present to the Congress comprehensive tax reform legislation. We will also have to present to the Congress very shortly our analysis of the needs for the social security package, and there are many other major proposals that are being evolved very carefully and presented to the Congress in a timely way. I'll have to depend upon, of course, the congressional leaders to decide in which order they will address these major efforts. As most of you, I am sure, are aware, these proposals that I have outlined fall on exactly the same committees. The Ways and Means Committee in the House, under Congressman Ullman, will handle most of the parts of energy that relates to taxation--tax reform, social security, as well as welfare reform. And all of the subcommittees will begin work immediately.

We are now facing a major decision by the Congress and by the Nation on energy legislation. And one of the toughest battles that I have to fight is to protect the consumers and to make sure that the Congress doesn't give the oil companies all the financial breaks as we put into effect an energy package. I might say that I have had superb support from the Vice President, from the Members of Congress from your own State in the House and Senate, and I'm going to go by Sunday afternoon and pick up the finest American that I have ever known--Senator Hubert Humphrey--and he's going to go back to Washington with me. The Michigan delegation came with me. They are helping me, too, with this very difficult energy legislation. But it could mean, if we make a serious mistake, a devastating blow to the people who are not sometimes adequately represented by the lobbyists in Washington. And I hope that you all will look on me as your prime lobbyist in Washington for those who don't have strong representation at times. We have done a few things, just to answer your specific questions, on food. This year already the Congress has very wisely removed the purchase requirement for food stamps, which, I think, will make the program much easier to administer in the future, and it will prevent poor people from having to put cash money into food stamps. They'll get the food stamp themselves now in the future without having to put money into it. We also have done the best we could to provide some help for fuel costs during the rough winter we had last year. We'll have the same program, I don't have any doubt, this winter to take care of families who might have their energy cut off. We have put forward, in addition, some programs that will be of great help to the poorer-built homes, with direct aid for those who want to insulate their homes. Quite often the poorer a family is, the more inefficient their home is in preserving heat and energy, and we want to be sure that that's corrected in this bill so that it will be a protection for you in the future. We want to make sure that the money collected on oil price increases goes back to the consumers directly. And as you know, there's a great deal of pressure to give a large part of this money to the oil companies. We are trying to have electricity rate reform. At this time the electric power companies charge the highest electric rates to those homeowners who use the least amount of electricity. If you have a big building like this or a big office building or a big factory, the more electricity you use, the less you pay per kilowatt-hour. And we want to be sure that that's turned around.

I recognize that when Lyndon Johnson was in the White House, he pushed hard and worked hard and 2 years later finally got some semblance of the Department of Transportation that he wanted--2 years. We asked the Congress 3 months ago to establish for our country a new Department of Energy. And they have already acted, and I believe that the conference committee will complete their work and I will sign this legislation into law very close to the Fourth of July. So, four of the five major issues that I asked for have already been completed-an absolutely unprecedented achievement on the part Of the Congress. And the other one of the five was equally difficult. And that was to evolve a new energy policy for our country that would be adequate and fair with vision for the future and a realization that we need to conserve our precious possessions that provide us with jobs, heat, light, and a possibility for progress. And the Congress is making good progress, in spite of tremendous complexity and tremendous pressure from special interest groups, many of them quite benevolent. But it's going to take a lot of courage, and I have no doubt that the Congress can exemplify the requisite courage themselves. So, to sum up my own feeling toward the Congress, it's one of appreciation for their achievements and also appreciation for the partnership that we've formed. I want to work in the future with you and the Congress to continue to strip away the secrecy from government, to let the American people know what we do, to observe our achievements, yes, but also to observe our failures and our needs, our shortcomings and our mistakes. I believe that we'll make sounder judgments in domestic and foreign affairs if the American people's tremendous vitality, intelligence, sound judgment, and experience can be tapped in government. And I think all of us in Washington will perform better knowing that you know how we do perform.

I'm trying to fulfill all my promises. And I think I was quite reticent in making those promises, certainly compared to some of my opponents. But we've put forward already to the Congress proposals that carry out the major promises that I made--reorganization, energy, welfare reform, and so forth. We've also been successful, I think-when an analysis is made of what the Congress achieved this year, I think there's going to be a very pleasant reaction from the American people when they see the progress that we've accomplished. So, I don't think I made too many promises, and I think I'm doing an adequate job in trying to fulfill those promises. There is a very heavy agenda for the Congress. And it's much easier for the administration to evolve a proposal or to present legislation to the Congress than it is for Congress actually to pass it. And so the Congress will inherently follow behind any administration in dealing with very controversial issues that have no easy solution. So, I think so far our relationship with the Congress has been good. The effort to carry out my promises has been adequate. I don't think I made too many promises to the American people.

Well, I think it's hard to pick out the accomplishments. We were very pleased to get the economy moving in the right direction. We had an economic stimulus package that the Congress passed with dispatch. The unemployment rate has dropped about 1 percent. Employment has increased more this year, I think, than ever before in history--4 million people net gain in employment this year; 900,000 last month alone. Since June, the inflation rate has leveled off at 4 percent. I wish I could predict that it was going to stay that low; I don't think it will. But this shows a good response. We formed a new Department of Energy, which brings order out of chaos in one of the most serious challenges that might affect our Nation in the future. Formerly, we had 50 different agencies in the Federal Government that were dealing with energy. It was almost impossible to get the answer to a question or to register a complaint or to make a beneficial suggestion.The Congress, I think, has dealt fairly with my programs. We've got a long-range, very well-considered farm bill that will be in effect now for about $ years. We've met all the challenges, so far as I know, that I've put to the Congress. We've made good progress in getting back on the track the negotiations with the Soviet Union. We've protected .our own interest; we've shown them that we are firm and can't be pushed around. We've begun some major reorganization effort, projects. It will take us about 3 years to finish them all; some require a great deal of time. But the Congress has given me almost unlimited authority, subject to subsequent congressional veto, to take over the executive branch now and to bring it into a manageable state. We've cut back tremendously on Government regulations, paperwork, reports to be required. This past week, OSHA, for instance, eliminated 1,100 regulations that they had evolved over the last number of years.

Good jobs also depend on reliable and affordable energy. This Congress must act to encourage conservation, promote technology, build infrastructure, and it must act to increase energy production at home so America is less dependent on foreign oil.

Effectively, what happened then was a year of good, strong committee work by the Energy Committee is now being held hostage in a fight in another committee. I have been patient with this, but I would remind colleagues that we are not getting any more extra legislative days being added. The clock is ticking here. This is a matter that, again, when this came before us while we were on this floor trying to work out the last of the amendments, this came up at the last minute, and we were promised a resolution at that time. We will have this fixed in a month. Well, it has been over 3 months now since this became an issue. Again, we have lost valuable time. This issue from the EPW Committee is holding back a strong, bipartisan bill that would allow us to modernize our Nation's energy policies for the first time in more than a dozen years. In a week where I have certainly been reminded about the importance of energy and, again, heard good, strong support for our energy bill, I would tell my colleagues that we need to redouble our efforts on this to advance this bill. We need to unlock this energy bill, which is a good bill that is ready to go, from the complications that have been created within another committee.

Now, the second major challenge I want to discuss with you this morning is energy. The energy crisis is the greatest domestic challenge that our country will face in our lifetime. I still find it almost incredible that our country has no coherent plan for dealing with it until this year. We have now proposed such a plan to the Congress and also proposed a new department to deal with the energy question. This plan is based on three inescapable realities. There's no way to get around them. The first is that we are simply running out of oil. The second is that oil will, nevertheless, have to remain our primary source of energy for many years and must not be wasted. And the third principle is that unless we begin soon to prepare for the transition to other sources of energy, the consequences on our society and our way of life will be very severe. We could face massive unemployment, crippling inflation, social and political instability, and threats to our freedom of action in international affairs. We cannot just rely on increased production. While finding more oil is important, we would have to discover a new- Alaskan oil field every year just to keep pace with the annual growth in world consumption. No matter how strong the financial incentives, that is simply not going to happen. We must save oil and gas for uses where there is no good substitute. One obvious example is moving vehicles. We must shift to other sources when possible, and we must develop new sources, such as solar energy. There are no workers in America whose future jobs depend more than yours on a good energy program based on strict conservation. Now, you know and I know that meeting our energy goals is not going to be easy. It will require sacrifice from everyone in the country. We cannot use the fuel crisis as an excuse for not cleaning up our air. I have proposed tough but fair air pollution standards. We've got to improve the efficiency of our cars, and that's why I proposed a gas-guzzler tax. Now you and I have honest differences of opinion over some aspects of my proposals. But I don't hesitate to call on you for help, because I know what you've done in the past. You've never lost sight of the broader interests of our Nation. Walter Reuther helped to make possible the Clean Air Act as it was originally passed. And your members are already building cars highly efficient, getting more than 30 miles per gallon. It's absolutely inevitable, no matter who's the President of the United States, that we will have to shift to more efficient automobiles with a clean exhaust. This past quarter, unfortunately, a larger percentage of Americans bought foreign-made cars than ever before. Now, I know that you agree that the solution is not to erect trade barriers to keep out foreign competition because it only leads to trade wars, to retaliation, and added inflation. The solution lies in using our great American ingenuity to design and produce the right cars for the future. I can think of no more disastrous assumption for the American automobile industry to make than that we cannot successfully compete with foreign companies that produce and sell such cars. We can compete, and we will compete successfully.

I like to pride myself on being a pretty good team player around here. I want to give people space to work their issues out, but I think it is time, again, for those who are able to hold the key to this to help us unlock this so we can move a significant priority--not just for the Energy and Natural Resources Committee but a significant priority for every Member in this Chamber because it doesn't make any difference if you are a Republican or a Democrat, if you come from an urban area or a rural area, when it comes to the strength of our Nation's economy, the foundational interest here, the foundations rest solidly on energy. So an opportunity to update and modernize our energy policies in a way that benefits us all is something that I would hope we can all agree to. I want to get this bill moving.

Just a few minutes ago, I signed a proclamation of emergency in Indiana so that we can provide help. And last night, I did one for Ohio. This will permit the legal use of military forces, National Guard, and others, to alleviate the traffic conditions and to reach stranded motorists and others. Well, we're trying to approach the energy question on a comprehensive basis, and it's a very complicated and difficult and politically divisive issue. The first natural gas deregulation bill that was vetoed, I think, was by Harry Truman, 27, 28 years ago, so that this is not something new. But I think for the first time the Congress has made tremendous progress in trying to resolve these major differences. I just finished having lunch with Senator Talmadge, who's on the Finance Committee of the Senate, who's also chairman of the Agriculture Committee, and we discussed farms and energy primarily. I think that we're flexible enough in the executive branch to deal with almost any reasonable solution that the House and Senate conferees can evolve. There are only three prerequisites as far as I'm concerned. One is to have an increase in conservation, an increase in production, be fair to consumers and, at the same time, not break the Federal budget. So, within those bounds, which are quite general, I'm flexible. There are some deeply felt opinions on both sides of this issue, based on 20 or 30 years of voting record, and it's hard to get people to accommodate those differences. They've never been able to in the past. So, I think we have a good chance to have a comprehensive energy bill this year that will at least let the American people know where we are going. I think the uncertainty is one of the crucial problems that we have.

We should give priority to legislation concerning social security.

Two days from now, I will present to the Congress my energy proposals.. Its Members will be my partners, and they have already given me a great deal of valuable advice. Many of these proposals will be unpopular. Some will cause you to put up with inconveniences and to make sacrifices. The most important thing about these proposals is that the alternative may be a national catastrophe. Further delay can affect our strength and our power as a nation. Our decision about energy will test the character of the American people and the ability of the President and the Congress to govern this Nation. This difficult effort will be the "moral equivalent of war," except that we will be uniting our efforts to build and not to destroy. Now, I know that some of you may doubt that we face real energy shortages. The 1973 gas lines are gone, and with this springtime weather, our homes are warm again. But our energy problem is worse tonight than it was in 1973 or a few weeks ago in the dead of winter. It's worse because more waste has occurred and more time has passed by without our planning for the future. And it will get worse every day until we act. The oil and natural gas that we rely on for 75 percent of our energy are simply running out. In spite of increased effort, domestic production has been dropping steadily at about 6 percent a year. Imports have doubled in the last 5 years. Our Nation's economic and political independence is becoming increasingly vulnerable. Unless profound changes are made to lower oil consumption, we now believe that early in the 1980's the world will be demanding more oil than it can produce. The world now uses about 60 million barrels of oil a day, and demand increases each year about 5 percent. This means that just to stay even we need the production of a new Texas every year, an Alaskan North Slope every 9 months, or a new Saudi Arabia every 3 years. Obviously, this cannot continue.

I wanted to mention tonight especially those two among many subjects that fall on my shoulders--agriculture and energy. The tests of political strength are severe; the responsibilities are great; the complexities are very difficult; the questions are hard to answer. But what gives me a sense of assurance and confidence is the degree with which I am close to you. When I base my opinion and my decision and my efforts on what I know you feel and what I know that you want, to that degree I feel that I represent you and our Nation well. I have a feeling that we are making good progress in correcting some of the deep concerns that we felt a year, 2 years, 3 years ago. The spirit of our country had been damaged severely by the Vietnam war. It had been damaged severely by the Watergate revelations, by the CIA investigations. There was a sense of concern about what our Nation stood for.

I've never had any conversation with Senator Long that would either encourage me or require me to change my position from what it was last April. We still maintain that the proposition we put to the House and Senate in the energy proposal is the best. The House-passed version of the comprehensive energy plan is very close to what we've proposed, and we support the House position in almost every instance when there is a disagreement. I don't have any inclination to modify that position anytime soon. We will be consulting very closely with the particular conferees who most nearly espouse the administration's position, and I would guess that the negotiations leading to some ultimate resolution of differences would be between the Senate conferees, headed by Senator Long and also, of course, Senator Jackson, on the one hand and the House conferee leaders on the other side. We will add our assistance when we can, but we will not betray the confidence of people who look to us for leadership. And I will not work out any private agreement with Senator Long that would betray the commitments that we've made previously, publicly, I might say, in all instances. So, I don't see any possibility of doing what you propose, or what you ask about. Obviously, both sides are very likely to compromise. They've already had compromises on literally dozens of issues. The three major issues remaining, as you know, are the electric rate reform--we have a good chance of having that resolved this week--the pricing structure on natural gas--and that conference committee will go back to work tomorrow; Senator Jackson is returning to Washington, D.C., then--and of course, the tax on crude oil. And these are to some degree interrelated. But I think that we've got a good chance, still, for making progress now, and I'm going to maintain the position that we described last April as long as possible, support in every instance the conferees that support our position.