VALUES IN CONFLICT - DESIGN CONSIDERATIONS FOR A TWO-STAGE SYNFUELS DEVELOPMENT STRATEGY.

This Note offers suggestions concerning the design of both stages of a two-stage synfuels development strategy. The first stage, limited to a relatively small number of commercial-scale synfuels facilities, would serve to reduce technical, cost, and environmental uncertainties and provide a basis for determining the scale and scope of a second stage, should a second stage prove desirable. A detailed plan for second-stage synfuels development may allow conflicts between particular synfuels facilities and regulatory requirements to be resolved by choice of alternative facilities, as well as by waiver of the requirement. The two-stage development strategy calls for considerable government direction of private sector activities in the first stage, and government provision of a framework within which private sector activities may take place in the second stage.