TASK FORC1 AND SI BCOMMITTE1 ON ENERGY, 19 I 687 



mittee hearings, both Democratic and Republican members testifying 

 en masse against the Udall bill. Result: the Rules Committee voted 

 down a rule. 



Senator Jackson was highly displeased with this action which 

 bottled up the companion version of his bill in the House. He signaled 

 that he was going to hold up legislation to establish ERDA until 

 such time as there was action on the Udall bill. When the administra- 

 tion got this message, frantic efforts started to see if the all-out op- 

 position to the Udall bill by the Science Committee could be swung 

 around. The administration was counting on the establishment of 

 ERDA as the most vital part of its energy program. 



"i WANT TO MAKE A DEAL" 



Not long after the Rules Committee had killed a rule on the Udall 

 bill, McCormack's subcommittee started hearings on July 30 on the 

 omnibus solar research bill. Administration witnesses, including John 

 C. Sawhill, Administrator of the Federal Energy Administration, 

 voiced their opposition. Frank Zarb, Associate Director of OMB, 

 was due to testify next. Accompanied by William McCormick, Zarb 

 asked to come up and confer with Teague, McCormack, Mosher, and 

 several other committee members. According to Dr. Ratchford, who 

 was present, this is what happened: 



Zarb came in. He was very direct and said in effect: " I want to make a deal. We 

 very much want to get the Energy Reorganization Act — that's the centerpiece of our 

 energy strategy. If you will take steps to get Mr. Jackson's bill through the House, 

 to get it back on track — that is cut a deal with Mr. Udall — the Administration will in 

 turn support the solar heating and cooling bill, the geothermal bill and the bill 

 I'm supposed to testify on tomorrow." 



The deal was made. 



It was agreed that a compromise would be worked out with 

 Udall, and Zarb would testify in support of the omnibus solar bill. 

 When Dr. Ratchford returned to his office, he received a phone call 

 from a committee alumnus, Joseph Del Riego, who by that time was 

 handling congressional relations for NASA. Del Riego, according to 

 Dr. Ratchford said: 



I want to apologize. We just sent up the written version of our testimony on the 

 bill tomorrow. The OM B made us oppose it, although we would love to support it. 



Dr. Ratchford answered: 



Well, Joe, you may be hearing a little bit later. 



Sure enough, Del Riego phoned back and said: 



You won't believe what happened. OMB has changed its position, and we are 

 going to have to rewrite the conclusion in our testimony. We have already sent copies. 

 Can you send all of them back? 



