94th Congress, Ist Session House Document No. 94-218

VETO OF THE

PETROLEUM PRICING REVIEW ACT

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

VETOING

H.R. 4035, AN ACT TO PROVIDE FOR MORE EFFECTIVE

CONGRESSIONAL REVIEW OF PROPOSALS TO EXEMPT

PETROLEUM PRODUCTS FROM THE EMERGENCY PETROLEUM ALLOCATION ACT OF 1973 AND CERTAIN PROPOSED ADMINISTRATIVE ACTIONS WHICH PERMIT

INCREASES IN THE PRICE OF DOMESTIC CRUDE OIL;

AND TO PROVIDE FOR AN INTERIM EXTENSION OF

CERTAIN EXPIRING ENERGY AUTHORITIES

JULY 22, 1975.-Message and accompanying act ordered to be printed

as a House document

57-011 0

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1975
To the Howe of Representatives:

I am returning without my approval H.R. 4035, the Petroleum

Price Review Act, because it would increase petroleum consumption,

cut domestic production, increase reliance on insecure petroleum imports and avoid the issue of phasing out unwieldy price controls.

H.R. 4035 would go counter to the Nation's need to conserve energy

and reduce dependence on imported oil. It would increase petroleum

imports by about 350,000 barrels per day in 1977, compared to import

levels under my phased decontrol plan. It would even increase imports

by about 70,000 barrels per day over continuation of the current system of mandatory controls through 1977.

The provisions in this bill to roll back the price of domestic oil not

now controlled, to repeal the "stripper well" exemption from price

controls and to establish a three-tier price system which would require

even more complex regulations would be counterproductive to the

achievement of energy independence.

The bill does contain an Administration requested provision which

would continue the coal conversion program through December 31st.

Since coal conversion authorities authorized last year in the Energy

Supply and Environmental Coordination Act expired June 30th, I

urge rapid enactment of a simple one year extension of these

authorities.

Last Wednesday, July 16, I submitted to Congress a compromise

plan to phase out price controls on crude oil over a thirty-month

period. Coupled with administratively imposed import fees, this plan

will reduce the Nation's imports by 900,000 barrels per day by 1977. It

will reduce our vulnerability to another embargo by adding slightly

over one cent per gallon to the price of all petroleum products by the

end of 1975 and seven cents by 1978.

If Congress acts on this compromise and on other Administration

proposed energy taxes, including the "windfall profits" tax and energy

tax rebates to consumers, the burden of decontrol will be shared fairly,

and our economic recovery will continue.

I veto H.R. 4035. because it increases our vulnerability to unreliable sources of crude oil and does not deal with the need to phase-out

rigid price and allocation controls enacted during the embargo. I

urge Congress not to disapprove my administrative plan of gradual

decontrol. If it is accepted. I will accept a simple extension of price

and allocation authorities. If decontrol is not accepted, I will have no

choice but to veto the simple six-month extension of these authorities

now being considered by Congress.

For too long, the Nation has been without an energy policy, and I

cannot approve a drift into greater energy dependence.

GERALD R. FORD.

TnE WHITE HOUSE, July 921, 1975.

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H.D. 218