Transcripts

text | pdf |

---

JIMMY CARTER: I'm going to be on the beautiful Mississippi River for the next seven days with about 140 fine Americans, and I know we'll make many new friends on the ship. It'll be kind of a working vacation because I will take every opportunity to express to the American people my deep concern about the first development in the rapid-changing characteristics of energy supply that have ever comprised a direct serious threat to the security of the nation that we love.

This is no exaggeration. We have become overly dependent on uncertain and very expensive imported oil. We import not only oil. But we import unemployment, and we import inflation. I've already taken action with the help of the Congress to save four million barrels of oil per day by 1990. And I've proposed to the Congress savings for another 4.5 million barrels of oil per day.

I can pledge to you that the most oil that this country will ever import in a year was imported two years ago in 1977. We're going to freeze that import and start bringing it down to make our energy security something on which we can depend. The basis for it is a windfall profits tax. The basic decision there is, as oil prices go up with decontrol to encourage American production, who is going to benefit, the oil companies or the American people?

I'm determined that it will be the American people, and it must be as a result of the passage of the windfall profits tax. Only your voice can make that possible. And out of the windfall profits tax will come money to help the poorest American families bear the increased burden of inevitable increases in the price of energy.

It will let us form much more effective mass transit systems. It will also mean that we can increase American production. More coal will be used, clean burning coal, more solar energy, more production of oil and natural gas, and the most important thing of all and the cheapest thing of all, more conservation, how to stop wasting energy.

This beautiful building has been renovated so that it does become energy efficient. Every single building in Saint Paul can have the same degree of achievement. But it can only be done with the full cooperation and involvement of all the citizens of this community.

This meeting is very important, not only for you but for the entire state of Minnesota, indeed, for the entire nation. Because you've done such good work before I got here and to some degree because I'm here, people will know what you're going to do. And this is very important to us all.

Today, in preparation for my visit here to Saint Paul, I sent a personal letter to every senior elected official of every county and city in the United States of America, 6,000 personal letters, with an enclosure saying what certain communities have already done. And it wasn't a coincidence that one of those communities that I've used as an example was Saint Paul because you've done a good job.

[APPLAUSE]

Now, now I came here to listen primarily, but I want to make two very quick points. There are two basic errors or misconceptions that permeate America. One is that conservation can be accomplished by government. It cannot it must be accomplished by citizens.

Secondly, that conservation is somehow painful or inconvenient. It does not have to be painful or inconvenient. It can be exciting. It can be enjoyable. And instead of dividing one American from another, it can form the basis for a closeness within a family, or within a community, or, indeed, within a whole nation.

And it saves a lot of money, not my money, not the government's money but your money. This must be done. And if all the communities in our nation will do as Saint Paul is planning, then our conservation effort will be successful. That's what I hope and pray.

And now I'm eager to listen to the presentations that have been prepared. And if you don't mind, I might interrupt every now and then to ask a question if I feel the urge. Thank you for letting me be here. It's a great honor and pleasure for me. It's going to help the whole nation what you're doing. Thank you, Mr. Mayor.

[APPLAUSE]

GEORGE LATIMER: The first presenter is Cliff Olson, who is from the First National Bank of Saint Paul. He represents the Chamber of Commerce in the Energy Committee, and he's a vice president of the District Heating Development Company, which is the subject which Mr. Olson is going to speak about. Cliff.

CLIFF OLSON: Several years of effort were fulfilled in June of this year when the public and private sectors of our community joined to form the Saint Paul District Heating Development Company. Its purpose is to demonstrate the technical and the economic feasibility of providing a metropolitan community such as ours with central heating through the medium of hot water produced through coal generation in conjunction with an investor-owned electric power station. This power station incidentally uses only coal as its fuel.

While innovative, the concept is not revolutionary. Central hot water heating systems have been used in Europe for many years. The point is that it's never been tried in the United States. The advantage offered by this system is the almost doubling of thermal efficiency because energy otherwise wasted in electric generation is recaptured and becomes a hot water used in the heating system.

Also the oil and natural gas, which is not used to heat homes and industries, is saved. And it amounts, by our engineer's calculations, to be sufficient to heat some 200,000 homes. This is about twice the number of homes that we have in Saint Paul.

GEORGE LATIMER: Thank you very much, Cliff.

[APPLAUSE]

The second speaker is Malcolm MacDonald, who manages the Space Center buildings in Saint Paul Minnesota and works with Operation 85, which he'll tell the people and the president about. Malcolm.

MALCOLM MACDONALD: Mr. President, Operation 85, trades and labor, business and civic leaders who are planning the Saint Paul of tomorrow, acting in the conviction that most practical local solutions to our energy problems will be found through a productive partnership, we, as citizens, have tried to construct a here-and-now energy conservation program to reduce our daily energy consumption, increase our downtown air quality, and save money for all of us. In cooperation with this city and in particular the Office of the Mayor, the Metro Transit Commission, and private industry, Operation 85's Committee on Commuter Alternatives has designed four energy-saving programs for cars and people.

In October, we will announce the first phase. These programs for carpals, vanpools, greater bus riding, and parking at the edge of the city have, as their common goals, reducing the number of cars by 15%, reducing gasoline consumption through shorter trips, and reducing downtown traffic congestion, increasing the use of existing public transportation systems for greater efficiency, increasing revenue for our bus system to reduce its deficit, increasing our air quality, and saving money for all of us.

To make these programs happen, the public and private sectors are cooperating to provide special lanes, parking and cost incentives for van and carpoolers, properly spected long lasting equipment, designed for low-speed continuing shuttle to reduce maintenance and operating costs, variable work hours flex time to reduce peak pressure on transit facilities, encouragement for appropriate bicycle use, and rediscovering how to walk down our new pedestrian malls.

For the future, we are looking to help Saint Paulites with area-wide matchups for carpools, shared ride taxis, dial-a-ride for the handicapped, additional shelters at fringe parking lots, and extensive information programs. Looking further into the future, we have been considering a people mover, light rail transit, computer-controlled traffic management, expanded use of buses, jitney, small bus and school bus to replace car use during the middle of the day.

[APPLAUSE]

GEORGE LATIMER: Next is Alan Boyce, who is the president of the Citizens League, which, Mr. President, is an extraordinary not-for-profit group of citizens who research every level of government in the major issues, as well as being an employee of the Burlington Northern Railroad. Alan will talk to us about the potential of the energy park in Saint Paul. Mr. Boyce.

ALAN BOYCE: Mr. President, I'm very glad that you decided to begin your trip here in Saint Paul. I think it's particularly appropriate on a trip revolving around the energy issue that you begin in a central city like Saint Paul, which is inherently energy efficient. This is because of the proximity within our city of our facilities for shopping, and work, and recreation, and housing. And I think here in Saint Paul, we have the opportunity to take this inherent advantage one step further.

What we have-- and I think this is rather unique-- is a site of approximately 250 acres of land right in the heart of our Metropolitan area, halfway between the downtowns of Minneapolis and Saint Paul, which is available for development. This area presently contains a Coke plant, which is recently shut down, an underused stadium, and a great deal of vacant land.

What we see here is the potential for the development of what we call an energy park. This would be an area which would demonstrate new techniques for combining energy-efficient light industry, housing, transportation, and the production of energy itself. We foresee a public private corporation, which would be established, to develop the following types of facilities all in one complex-- high-density energy-efficient housing, an office industrial park for energy-related industries, an energy research and development center in connection with the University of Minnesota, a solid waste recovery plant to make use of some of the waste generated in the complex, a hot water district heating system, which could potentially produce both electricity and then, through cogeneration, use some of that waste heat for district heating.

There's also potential for a cable television system, which could provide special energy saving features that would help reduce the need for people living and working in this area to travel.

GEORGE LATIMER: Thank you very much, Alan.

ALAN BOYCE: Thank you.

[APPLAUSE]

GEORGE LATIMER: As you have as you have pointed out numerous times, the greatest burden on the poor is, in fact, the inflationary impact of energy costs. And that's why it's very important to us that our next speaker, Michael McAllister, is the Director of Energy Conservation for our local CAP program, which is called the Ramsey Action Program. Mike.

MICHAEL MCALLISTER: Thank you, Mayor. Mr. President, Ramsey Action Programs in Saint Paul is a community action agency serving the low-income people in Ramsey County. Among the many programs offered, the energy programs are providing a much-needed service to Ramsey County residents. Currently, the energy programs have three main components, one, optimum weatherization research project.

This research program is determining which energy conservation measures are the most cost effective in residential construction. Two, the state and federal crisis intervention and emergency energy assistance programs-- in the past six months, 4,554 households have received assistance because of the high-energy cost. Three, home weatherization program-- in Ramsey County, this program is being accomplished by a joint effort from the city of Saint Paul, manpower programs, the Community Services Administration, and the State Department of Economic Security.

Recently, a needs assessment on the homes in Ramsey County was completed. 45,402 eligible people for the home weatherization program were identified. Our priorities for weatherization are fuel oil users, senior citizens, and handicapped people. In addition, the study revealed that the working poor need fuel assistance and weatherization assistance.

Currently, they are not eligible for assistance because their gross income is above the guidelines. However, their net income is below the guidelines. The people in the state of Minnesota and the community action agencies need more funds to support the energy conservation programs. Thank you, Mr. President.

[APPLAUSE]

GEORGE LATIMER: Thank you very much, Mike. Mr. President, the city of Saint Paul is a very strong neighborhood-oriented city. The next speaker comes from one of our great old nearby downtown neighborhoods of West 7th Street area. And her name is Becky Yust, and she also teaches at the University of Minnesota as a home economist. Becky.

BECKY YUST: Two very basic concerns that affect families the most are simply getting to work and keeping warm in their homes. The need for efficient transportation is great. Over 40% of the households in our community do not even own a car. For two years, we have investigated and proposed a light rail system or a modern trolley for our community.

As in most city neighborhoods, we have one main business street that serves as a corridor from downtown to the airport and suburbs. Three different bus lines intersect it, and it is a natural collecting point for residents. Light rail is a preferred transit system because it is nonpolluting. It operates in our severe climate. And it is not capital intensive.

The second problem involves heating our homes. We have very few newly constructed housing units in the inner city. The vast majority of the housing structures are existing and too expensive to replace. And because of their age, they do not have insulation. We need funds through the HUD 312 program to provide monies to help people insulate, weatherstrip, replace rotted windows, and ventilate.

Targeting monies to pay heating fuel bills alone will not affect the conservation of energy. We do not want to maintain the present situation. We need to change consumption so that families can have lower heating costs.

[APPLAUSE]

GEORGE LATIMER: Thank you very much.

JIMMY CARTER: I've asked the mayor to let me say just a word. We have three more presentations to make. But there are three themes that run through all these presentations.

One is there is no possibility of success without a joint cooperative effort. One person alone, a president or a mayor, Congress can't do it. It has to be a joint effort.

Secondly, every one of the programs proposed, even the cogeneration plan or the people mover, the weatherization of homes, is already dependent upon federal funds is kind of a core basis for a much broader magnified effort by everyone else. And third, every one of these proposals so far doesn't make life more dismal.

It makes life better. It is not a sacrifice to get to work efficiently, not to have traffic jams, to have an easy way to shop, to save heat in your homes, not to throw away heat in the generation of power. And as you well know, every time you don't burn either coal, or gas, or oil, air pollution goes down.

So those three things, a cooperative effort, the Federal Government must and is helping and can help more with the windfall profits tax. And, third, conservation makes our life better and not worse. It's a good thing for us to remember. And I know you'll watch this and see if what I've said is true for the last three speakers. Thank you, Mr Mayor.

GEORGE LATIMER: Thank you. The sixth speaker is Greg Haley, who is an architect who has been very active in his community, and in particular has been working on community planning in his neighborhood, and would like to talk about that aspect of it. Greg.

GREG HALEY: Principal element of our plan is the proposed residential and industrial development of the vacant and underutilized railroad land that bisects our district. New housing would fill a need for university students and provide homes for families who prefer to live and work in the city. Industrial development would help stem the flow of companies to suburban industrial parks, decrease employee commuting time, and provide a centralized distribution point for goods and services.

The University of Minnesota's intercampus transit system will pass through this redevelopment area, affording transportation to students and staff living in the neighborhood. This underutilized railroad land and adjacent properties make up Mayor Latimer's proposed energy park. At the very least, the energy park could be a refreshing alternative to urban redevelopment. We hope it can be a stimulating learning tool and a model for other cities to emulate.

Our neighborhood is also pursuing solutions to energy-related problems on a smaller scale. We have volunteers staffing a home improvement center, who give out information on re-insulating and renovating older homes and how to finance the work. We have formed a local development company composed of businessmen and residents to help small businessmen secure financing for capital improvements, including rehabilitating older structures for energy efficiency.

GEORGE LATIMER: Thank you.

[APPLAUSE]

Thank you very much. The next speaker is Russell, Russell Doty, who is an attorney and has done considerable research professionally in solar and alternative energy sources and the kinds of ordinance and statutory changes that might be needed to adapt to the new technology. Mr. Doty.

RUSSELL DOTY: Ramsey County has 30 to 50 solar installations. And from these projects and the 400 to 700 other operating solar systems in Minnesota, we have confirmed that Minnesota's climate is definitely suitable for solar applications. For example, one Twin Cities solar system was producing 90 degree tap water on Christmas Day two years ago. Many of Minnesota's systems have been working successfully for more than two years. And many of them are warranted for up to 10 years.

But people do not yet realize that solar systems work here. And we continue to need massive amounts of money to make the solar curriculum guides and resource people available to the educational projects. Even though we have a low-income solar loan program administered through the Minnesota Housing Finance Agency and even though we now have a combined federal-state tax credit that defrays up to 50% of a solar system's costs, most people cannot afford the initial investment, that $2,000 to $10,000 upfront cost of a solar system.

Energy utilities financed that upfront cost of power plants by floating bonds that are amortized over long periods. And they float tax-free bonds for some of that plant. Now, solar energy-generating plant also should be paid for by long-term financing. But financing that allows the people and not the utilities to own their energy generating systems once the costs are amortized, your proposed loan grant and small energy business assistance programs have and will help.

But those funding sources won't and don't provide enough money to go around. And under them, the larger established firms likely will continue to ace out smaller applicants who are just as creative. You can help solve that problem-- and this is my most important point-- by advocating federal legislation to enable Saint Paul and other municipalities to support the issuance of tax-exempt, low-interest-rate industrial revenue bonds.

The bonds will finance on a lease purchase-type basis, the widespread use of individual solar systems. People can then pay for the solar systems over long periods of time at BTU rates equal to utility rates. And the money market, not the government's budget, will be the only limit on available funding.

For example, a $400 million bond issue will provide more than enough money to install solar tap water heating systems on all of the housing units in Saint Paul. Direct heating solar systems can now produce more BTUs per dollar invested than nuclear and coal electric generating systems. So continue to challenge us, Mr. President. Give solar the same money market access, and fast write off, and other tax advantages the coal and nuclear power-generating utilities enjoy, and we'll insulate, and solarize, and do everything that we haven't done yet and should do and do our best to see that you never have to find another $400 million to clean up a plant like Three Mile Island. Thank you.

[APPLAUSE]

GEORGE LATIMER: Mr. President, you've probably noticed, although-- although we-- although we believe strongly in local control and citizen participation, that the prospect of federal monies continues to have some interest to us.

JIMMY CARTER: I have--

GEORGE LATIMER: You get that feeling? [LAUGHTER]

JIMMY CARTER: And with the windfall profits tax, we will have that money.

GEORGE LATIMER: All right. All right.

[APPLAUSE]

I do feel very strongly that you have sparked a sense of mission in dealing with the energy issue because it will affect poor and rich alike. And you've also said something else today that I have been preaching and repeating here. And that is that we are at another crossroads, and the energy problem is not merely a problem but also a productive solution, that energy is going to be a job-producing entity, that energy is indeed-- it can pull the community together, as you have pointed out.

JIMMY CARTER: I can truthfully say from the bottom of my heart that this has been an enjoyable and an inspirational meeting. We live in the greatest nation on Earth, and we are blessed beyond all people. And still, I'm absolutely convinced that what I said that Sunday night in July is accurate, that our nation is on the verge of a very serious problem.

We have tended to lose confidence in ourselves, to lose confidence in one another, to come alienated or even antagonistic toward our own government, and to fail to recognize the blessings that we have. God's given us every possible natural and human advantage, freedom, where individuality, and initiative, and innovation can be nourished and used to overcome any challenge, which it has always been proven in the past.

We've got five times more energy reserves in our country than all the OPEC nations combined. We're the strongest nation on Earth militarily, the strongest nation on Earth economically, the strongest nation on Earth politically. We are a democracy.

Our free enterprise system encourages challenge, and competition, and dynamism, and flexibility to meet any possible obstacle that might stand in the way of American people having a better life. And I want to see the wounds that exist and the discouragement that exists healed. And I want to see the challenges that arise overcome. And I want to see the problems that present themselves solved and the questions answered.

And nobody claims-- certainly I don't-- that all those answers, and all those solutions, and all those challenges can be met from Washington. Saint Paul has a kind of spirit that can make us all proud of our country and that can bind us together in a spirit of brotherhood, and sisterhood, and unity that must be the basis for future progress.

I'm thankful to you, and my visit here has made me even prouder to be the president of the greatest nation on Earth. Thank you very much.

[APPLAUSE]