$5 Billion Urged for Acid Rain Cleanup Project

President Reagan and Canadian Prime Minister Brian Mulroney will be presented with a report today that calls for the U.S. government and industry to undertake a five-year, $5-billion program to test technology for controlling acid rain, government officials said Tuesday.

The report also includes a strong statement describing acid rain as an increasingly serious problem in Canada and the United States, without the caveats offered by the Administration in the past that “more research is necessary” into its cause and effects, officials said.

Moreover, the report reflects a concession from Canada in that it does not call for specific and immediate reductions in sulfur emissions, which Canada has long sought. Officials said the technology that would be developed in the proposal would, as a byproduct, reduce the emissions, although the exact amount cannot be predicted. Canada may seek more specific reductions later, officials said.

Mulroney’s government, which has urged the United States to take stronger actions to fight acid rain, is expected to welcome the report. But the $5-billion recommendation could put Reagan in an awkward position because of the deep cuts envisioned in U.S. government spending. Reagan is expected to give the report a low-key response likely to disappoint Canada.

The report includes joint recommendations from Drew L. Lewis, former U.S. transportation secretary, and William G. Davis, former Ontario premier, who were appointed special envoys on the acid rain problem by Reagan and Mulroney at their Quebec City summit last March.

The proposed $5-billion program would be split evenly between the U.S. government and American industry, according to officials.

The money would be spent for a commercial project to demonstrate cleaner methods of burning coal in U.S. factories and power plants.