Transcripts For CSPAN Energy Deputy Secretary Nominee Testifies Before Senate Energy Natural... 20240713

Please knew your microphone. Mute your microphone. [indiscernible] we have previously provided guidance as to how this would [indiscernible] [indiscernible] cspan. Org [indiscernible] [indiscernible] thank you. I want to welcome mr. Menendez and his wife. I appreciate you taking on this post. Tonk you for taking the time talk to me last week and take the best thank you for taking the time this morning. This is the first hearing the committee has held since march the 10th. Since then, millions of americans have filed for unemployment. Nearly one point 5 million have contracted covid19 and nearly 90,000 have perished from the disease. Is work in the u. S. Senate that much more critical and we respond as we respond to this pandemic and return to the economy. Second the highestranking office and the department of energy and the department has been playing a role in helping the nation fight coronavirus. The department of energy is a scientific powerhouse. Its National Laboratories are some of the nations and their Scientific Research centers. The labs are using what they use learn from smallpox, ebola, and polio to determine how the coronavirus behaves and labs supercomputers are helping us to screen compounds to expedite vaccine development. Can play a his labs vital role in supporting the Scientific Resource research and Development Needed to rebuild the economy. This job will be critically important in this effort. Secretary shall act for and exercise the functions of the secretary when the secretary is absent. The job is much bigger than that. The deputy secretary is the chief operating officer. Is responsible for the mission and the budget of over 35 billion. Ive already mentioned the importance of the National Laboratories and the Department Scientific mission. Is responsible for maintaining the Nations Nuclear weapons stop file, making the fuel that propels the nuclear navy, and guarding against nuclear proliferation. It manages one of the largest and advance environmental cleanup programs. For Power Marketing administrations that supply electricity, produce and federal dams. The department is responsible for ensuring our Energy Security and protecting the Energy Sector from Cyber Attacks. The deputy secretary job is an extremely important one. Years, he just5 served as the under secretary of energy. Withs a long History Energy issues going back over 30 years. He has worked for an oil services company, an electric utility, a Commerce Committee as an Energy Lawyer for a major law firm, head of the federal relations for Berkshire Hathaway energy and for the past two years, as the principal advisor on Energy Policy. You certainly have the experience for this job. I want to thank you for your willingness to take it on. And for being here with us today and for having her lovely wife with the also. I turn it over to senator cassidy. Thank you. It is a privilege to introduce a nextiana native to be our deputy secretary at the department of energy. His congressional and private secretary experience makes him imminently qualified. As colleagues recall, the Senate Confirmed him to his current role by voice vote in november, 2017. He oversees many programs important to Energy Innovation energyng nuclear energy, efficiency, and renewable energy. He also created the Department Cybersecurity office. He is a fellow lsu tiger where he learned earned bachelor and law degrees. Secretaryon of debbie carries responsibility deputy secretary carries responsibility including promoting policies to rebuild our economy and giving help to americans who whose lives have been impacted by the epidemic. He served at Berkshire Hathaway energy developing extensive experience in direct with federal agencies and congress. A partner at hudson and williams, managing the regulated market and energy and structure practice group. Elaborately with federal agencies to achieve important outcomes. He served as chief counsel in Environmental Issues to the u. S. House Representative Committee on energy and commerce. He secured passage of the energy and policy act of 2005 as a negotiator and architect for the house majority. He served as staff counsel for the committee on commerce, science and transportation focusing on maritime issues. Position carries greater responsibility. What i have not mentioned is the breadth of experience. He worked as a roustabout on an offshore oil rig in the gulf of mexico. It is those folks who ultimately will depend upon the decisions we make and that you make. It is those folks who are most vulnerable to the coronavirus downturn. The fact that you can fully empathize and relate to the guy on a helicopter coming back from two weeks to go back two weeks more and how he feeds his family and how everything depends on that, i think is your greatest qualification of all. Confidence of the secretary. Who has already given you additional responsibilities while the deputy position has been vacant. Having a full view of the departments capabilities will serve you and everyone else well as we seek to recover from the covid19 pandemic. Thank you for your willingness to serve. Preparedu deliver your remarks, i must swear you when an ascii standard questions. Ask youwear you in and questions. Please rise and raise her right hand. Do you solemnly swear that the testimony you are about to give to the Senate Committee on energy and National Natural resources shall be the truth the whole truth and nothing but the truth . Before you begin your statement, i will ask you three questions addressed to each nominee before this committee. It will you be available to appear before this committee and other congressional committees to represent departmental positions and respond to issues of concern to congress . I will. Are you aware of any personal holdings or interests that would constitute a conflict should you be confirmed and assume the office . I do not. Do you hold any assets in blind trust . Mr. Menezes i do not. You may perceive. Proceed. Chairman, Ranking Member, Ranking Members of the committee and staff. Thank you for this hearing, particularly during this challenging time and for the flexibility of your demanding schedules to be here in person and virtually this afternoon. I would like to thank President Trump for nominating me for the deputy secretary of Energy Position and i am humbled to appear before you today. Thank you to those who have spoken to me prior to this hearing to present your concerns, ideas, recommendations for improving the department and our working relationship. I have been fortunate to serve as the under secretary of energy for the past 2. 5 years with secretary perry. Working together with his committee, to address the challenges our country faces. I thanked them for their leadership, guidance and friendship. Thank you, senator cassidy, for a judicially went to the committee. We share a unique perspective on ourrole our energy lays on economy, security, and workforce. Joining me today, is my wife. She is herself a committed public servant. As the division chief of the interpreting services of the state department. Watching from home and unable to be here are our children and their families. [naming children, grandchildren, and mother] and many family and friends across the country who have been supporting over the years. If confirmed, i will endeavor to advance the hallmarks of this administration, advocate for u. S. Energy of all kinds around the world while increasing accessibility and availability of energy here at home. Broadening our supercomputing capabilities and innovation at our National Labs, providing for a Strong National defense through a modern and Dynamic Security administration. Honoring the commitment to the cleanup of our nations Manhattan Project and cold war legacy sites. I am proud that the department of energy has been in the fight to combat the devastating impact of covid19. Under the leadership of President Trump and secretary bruyette, we have marshaled the capabilities of our nations scientists,s researchers, facilities, and highperformance Computing Resources to advance the pace of scientific discovery and the fight to stop the virus. The departments 17 National Labs each play a role in advancing americas leadership and science richard research and development and nuclear security. Our National Labs are part of a unique publicprivate consortium spearheaded by the White House Office of science and Technology Policy to include government, industry, and academic leaders to unleash the power of americas superComputing Resources to combat covid19. Recognizing advancements in accessibility and the need for strong deterrent, the Department Took the extraordinary steps of bolstering cybersecurity and Emergency Response as well as Artificial Intelligence by establishing two new offices focused on these emerging priorities. We have committed to Building Three new computing systems and following congresses leadership, enabled an act, we are evolving our science capabilities. Breaking down silos and enhancing our efforts across the department is a hallmark of this administration. Over the past three years, the committed professionals have come together across Program Areas to leverage High Priority Research and expertise to maximize the impact of federal research capabilities, expenditures, and partnerships. The department has pursued a number of these initiatives such as the Critical Materials initiative, the Energy Storage rights challenge, the plastics innovation challenge, and the Grid Modernization Initiative which brings together all five applied energetics is. The department has advanced under the Trump Administrations commitment to clean water, clean air, and clean energy. America is now the worlds secondlargest producer of wind and soldier solar energy. Cutting Edge Research and development at our National Labs will ensure america continues this progress for years to come through technology to advance all forms of energy. Recognizing interdependencies of our energy and water systems, the Trump Administration launched the water security grant challenge. Advancese. Effort Transformational Technology to meet the global need for safe, secure, and affordable water. I commit to each of you today that, if i am fortunate enough to be confirmed, i will work earnestly with you to address the challenges and opportunities of today and tomorrow. Members of the committee, i wish to thank you again for allowing me to be here today. Honor to comen before this committee and i ask for your favorable consideration of the president s nomination. I look forward to your questions. Thank you. [indiscernible] [indiscernible] can you get mad at they on the department of energys efforts can you give me an update on the department of rgys efforts [indiscernible] thank you for that question and the opportunity to update you on our efforts on establishing the Arctic Energy office. As i mentioned to you on the phone, in recognition of your efforts to get directing language in the appropriations bill, we are expanding the Arctic Energy office and within the next few weeks, we will be able to designate the initial transition staff. As i mentioned, we are on pace to have this Office Opened by the end of the fiscal year. It pleases me to report that we have been able, even during this time of covid19 and the difficulties of getting folks employed, we have been able to have a number of people whom we will dedicate to serving this office. It includes an interim director at the university of alaska, fairbanks as well as a supervisor at los alamos and an advisor in our International Affairs office. We have requested in the secretarys budget, a request for Additional Resources so we can have a coordinating position at headquarters. All of which will be dedicated to the arctic office. For your colleagues to appreciate the importance of this, we are and arctic nation. Our presence in the arctic is a National Security priority for the vital and a strategic resources. , alldition to oil and gas of the Critical Minerals that are there, as well as the Technical Support to serve the alaska native groups. Additional research and atmospheric conditions of their. All of these help us develop innovative interactive Grid Solutions that can apply in remote locations for National Security and to serve these remote populations. I am pleased to report that we have good news on that front. That is good news. Thank you for the effort that was made between the national that is good news on that front. [indiscernible] [indiscernible] [indiscernible] [indiscernible] mr. Menezes thank you, John Markowski of the question. For the question. It was difficult to hear everything the you were asking but i believe it is the lng export facility. Indeed, we have been able to facilities around the gulf of mexico on our east coast to help export the u. S. Lng to the world. They want our natural gas, because they would like to have choices from other countries. They are also replacing other types of fuel. Whether it is japan looking for replacement for nuclear and other countries looking to replace their current indigenous fuels, the u. S. Lng is a terrific opportunity for that. We have limited export lng export facilities. Being able to have one in alaska speaks for itself. Currently, Asian Countries have to go from the gulf of mexico over to asia and clearly, to have a strategic lng export facility on the west coast will help our asian friends and for partners. Thank you. With a doctorpoke agencyNational Energy about the impact of covid19 on the Energy Sector and what we need to do to get it back on track. He urged consideration of eight packages to invest in Energy Technologies that would help our cheaper,stem become cleaner, safer while creating new jobs. Renewables, storage, Energy Efficiency, advanced nuclear and Carbon Capture. An act which our committee spent the last year and a half putting together, would invest billions of dollars in the sectors. Innovation has historically been a catalyst for Economic Growth and job recreation and i believe our bill steers the course to investments in a globally competitive economy. The doe is in the business of innovation. Do you agree with the doctor that Energy Innovation should be a critical part of any stimulus plans . Mr. Menezes mr. Menezes thank you, Ranking Member, for that question. Senator manchin have you had a chance to look at the energy bill that we passed . Your feelings on that bill . Do you feel it hits the mark in a balanced way . Mr. Menezes thank you for that question. We are continuing to look at that legislation. We stand ready to work with you adviceer some technical if necessary on that. However, a reading of that legislation clearly points that the committee understands whats for aary to set the stage very dynamic Energy Policy of the future, and it includes the new industries, for example, it includes training for the workforce, which is very important. We are moving on now from things which used to be ordinary computer science, and now its Artificial Intelligence. Industries,the key such as the cybersecurity, Critical Minerals, smart manufacturing. It is a looking forward to bill. We are continuing to review it. We will work with your staff as we go forward. Manchin im also proud that National Labs have been able to aid in the response to coronavirus. Im pleased we were able to secure 99. 5 million in care act for this purpose. Can you update us on the Covid Response efforts using the tremendous National Labs capabilities . Mr. Menezes thank you for that question. Immediately after the covid viru identified, our National Labs went to work using the highperformance computing abilities. Order,relatively short it identified this protein structure of this virus and put it out into the medical and Research Community so that they could begin to develop vaccines and therapeutics. It also used Artificial Intelligence and its highperforming computers to also go through the several hundred of different compounds that were potentially able to be used to develop vaccines and therapeutics, so we were able to reduce that number down to a manageable number, and we put that out into the medical and Research Community. Thelso created what we Call National virtual biotechnology lab. This is all 17 of our labs participate in this. The idea is that we are making our user facilities available to those that are doing research on this, and that includes the nanotechnologies, the highperformance computing, but also our advanced manufacturing and the 3d printing. Thegenomic sequencing, molecular structure determination that i had made. We are moving to create devices to break through the supply chain problems that you have all been reading about, and, of course, we are beginning to offer Testing Facilities for sampling. Senator manchin i have one final question. They have hit historic lows, even reaching negative oil prices, which ive never heard in my lifetime, for the first time in history. Although prices have come back up a bit, they are still at record lows. It means the great prices at the pump for you and me, but it could lead to negative consequences, like bankruptcies, more job losses, International Instability among developing countries. Does interestf in using the reserve to relieve some of the pressure on the industry during this time, but what other tools does d. O. E. Have to respond to the Global Market instability . Are you concerned about the stability of some developing oilproducing nations . If so, what do you think we can do in congress, or should we do anything . Thatenezes thank you for question. Indeed, it is incredibly trying times. We talked about the demand destruction caused by covid19, but we must remove demand disruption caused by covid19, but proceeding that there were actions by saudi arabia and russia, in which they tried to increase supply and saudi arabia to cut prices to predatory pricing levels that it would be illegal in this country to do so. That double whammy hit the u. S. Producers, who had come forward in the past several years to meet the demand, due to our economic revitalization. These are u. S. Producers that primarily were unconventional shale plays. The ones who came forward to make america the number one producer of oil and natural gas. Where the department was able to play a role is we were able to support the president in his conversations with opec. For the first time in history, the u. S. And was the u. S. Was able to dictate to opec countries to get together and to control their supply and, frankly, talk to saudi arabia about reestablishing the prices. All of that helped. The point i am making is that, without the policies and the technologies that were in place to put the u. S. In that position, we would never have been able to bring that to bear against the opec countries. On a goingforward basis, we need to make sure we continue to lead the world in being able to be the leading producer of oil and natural gas, when necessary. Other countries then will look to us for leadership and therein we will play a strong role in determining the pricing, Going Forward. Senator manchin thank you, mr. Menezes. Murkowski thank you. Thank you for holding this meeting. Thank you, Ranking Member manchin. I appreciate and congratulate you on the nomination to this high and important position. Thanks to senator cassidy for introducing you and for your background, the current secretary is from louisiana as well, and we appreciate the fine job he is doing. We look forward to having you confirmed for this position as well. In april, the department of energy released the administrations plan to reinvigorate the Nuclear Fuel Supply chain. The report clearly states russia has weaponized its Energy Supplies to advance their strategic interests. This includes the uranium we use to our homes and businesses, through Nuclear Power plants, 20 of the electricity in the United States. As a result of market manipulation, american uranium production is at its lowest and i in 70 years, believe we cannot tolerate russias behavior in this. The Commerce Department is negotiating uranium import limits with the russian federation. Today im sending a letter supporting the Commerce Departments efforts to extend and reduce how much russian fuel is used in Americas Nuclear reactors. Mr. Menezes, do you support decreasing americas reliance on russian uranium in order to protect our energy and National Security interests . Mr. Menezes thank you for that question, senator. Yes, as you pointed out, the americas on the brink of losing its ability to produce its nuclear fuel, and producing our own uranium. The president s leadership on this, i think you have mentioned the department of commerce had received the president established the workforce. We met over quite a period of time. We did result in the release of a strategy to restore americas leadership. That will allow us to put in place whats necessary for us to reestablish our own ability to produce the uranium that we need to both serve the Nuclear Deterrent that we have, our navy propulsion, as well as our civilian fleet. Its important that we can do it here. Its a comprehensive program. The answer to that is yes. Youre also in the business now of setting up what we can do in this country were also in the business now of setting up what we can do in this country to make sure we have the mining, the conversion, the enrichment, and fabrication, to ensure we can provide the uranium and the nuclear fuel that we need for both our domestic and our security purposes. Senator barrasso i appreciate it. Its very important to me and to the nation past security nations security. For fiscal year 2021, you propose establishing a uranium reserve. The proposal in the budget comes more than two years after u. S. Uranium miner petitioned the Commerce Department for assistance. In 2019, production was about 19 less than another year. Given the urgent need to salvage this industry, will the department identify immediate funding to establish this uranium reserve this year . Thank you for that question. Establishing the reserve is a key priority for our office of nuclear energy, and so we have put in place programs that will feed into the establishment of that strategic uranium reserve. Been a long time coming. We look forward to working with you and the appropriators to make sure we get the amount we need to make sure we can have this Going Forward into the future. Senator barrasso and 2018, several colleagues and i led successful bipartisan efforts to expand the tax credit for Carbon Capture for utilization, for storage, all related to carbon dioxide. Aware, we have been waiting for more than two years for the irs to issue more detailed guidance to get these projects started. This was raised yesterday in the lunch with the president and the number of members of the United States senate. The department of energy has supported the irs as it developed the proposed rulemaking. Support. Ate that i continue to urge the irs to release the rulemaking as soon as possible. We took it to the president yesterday. Can you talk about the importance of largescale Carbon Capture utilization and storage for the United States . Mr. Menezes thank you, senator. You are correct. This has been a top priority of our department, to work with treasury and irs, to try to get these rules to followup on Congress Enacting 45q. The reason that congress extended the tax credit for Carbon Capture and utilization Security Technologies is that we can create an economic incentive to take action now, to drive down the cost of Carbon Capture technologies, put them on lp eliminatets to he some of the Carbon Emissions that we have. We have facilities, whether its power generation, manufacturing, refineries we have industries that can 45q. It from this as you had mentioned, secretary perry sent two letters, secretary bruyette has weighed in, with secretary mnuchin and others. Ive had many calls with the irs in the efforts to try to get this out. We have some good news to believe that its going to be forthcoming. Committeebody on the can fully appreciate what is available here there is capital out there, ready to drive down the cost of this technology and put it on existing and new facilities. And this will go a long way for us to maintaining our leading role in reducing emissions in the United States. Senator barrasso thank you. Congratulations. Murkowski thank you, senator barrasso. Thank you, madam chair. Thank you to the Ranking Member and undersecretary menezes. Its good to see you again. It was good to be with you last summer. Thank you for participating in that event. One of the things the community has brought up, the hanford larger community, we are always fighting to make sure we get the appropriate amount in the budget and the administration to recognize that hanford can never be cleaned up on the cheap. Getting that done and recognized process withe every administration. But now as we face this pandemic and the Economic Impacts of that, just like the previous recession, people have suggested maybe we use this opportunity to andate a higher investment quicker reaching milestones at hanford. I think last time, the budget billion int had 6 aid for Environmental Management program and 2 billion extra went to the tricities, to the hanford cleanup. Is that an idea we should be looking at . How will it help us meet the triparty agreement . What else could it help us do if we looked at that kind of Economic Investment . Mr. Menezes thank you, senator, for that question. Let me make a commitment to you that we will do everything that we can to meet our legal and moral obligations to clean up those sites, to your constituents and washington. We pledge to maintain the great relationship we have established with the state and with the union and with the workers there. You make an excellent point. A trip out to hanford is one that would make any american proud to see, both what it accomplished when we needed it during world war ii and yet what it has become today. The challenges are many, but when you go out there and you see the process the progress that has been made and the people out there, you realize that we have an opportunity here to build on the successes that we have had. I was talking to the site manager yesterday, and he said, we have developed this concept of a virtuous cycle, and that is progress, when you can demonstrate that you can make progress at these very difficult cleanup challenges, that enables an advocacy to continue to tell the story, and you can then get the resources that you need to continue the progress. , am proud to say that particularly undersecretary to secretarys the leadership, we have been making progress. We are on target. We are excited about that. We have accomplished things with the burial grounds and tunnels. The short answer is, yes, that would support if you can demonstrate progress, if you can demonstrate the need, and i think it is out there at hanford, then you can put a seriousyou know, attempt to see what resources are needed. Senator cantwell i like that answer. Thank you for that. I think its worth considering and continuing to remind people that this is an Economic Investment, but its an obligation and we need to accomplish both those tasks make the investment and give hanford get hanford cleaned up. I want, in the few minutes left here, to ask you about the departments assurance to the workforce that we will establish the right kind of Safety Measures at the hanford site to address the covid19 pandemic. Yes, thank you for that question. I would like to reassure all the workers at hanford that we are going to have adequate Safety Measures, because their safety and health are our number one priority there. As you are aware, we are moving to reopen some of the facilities, but we are being careful to ensure that we meet the gating criteria at each of the facilities. It will be datadriven, and that data will be the downward trend on the testing of any cases. Whether its positive cases of covid or influenzalike symptoms. Its also being driven to ensure they have sufficient medical supplies there, local health officials. Its also being driven by the fact that the facilities you open have to be able to accommodate the social distancing requirements. Of course, its also informed by the governors decisions and the locally elected officials, as well. You have our pledge that we will do that in a measured way, and we will do it as the gating criteria allows us to do. Senator cantwell thank you, madam chair. Chair murkowski thank you, senator. All,. Menezes, first of thank you for your willingness to serve. I know youve been actively involved in the departments efforts to develop hybrid Energy Systems. You are hopefully aware of the bill that senator manchin and i have coauthored that authorizes integrated energy symptoms systems programs at the doe that will improve the grid resiliency and longterm competitiveness of the nuclear industry. Could you give us your thoughts and guidance as we move forward on these enterprises . Mr. Menezes thank you very much for that question. I was delighted to read the integrated Energy Systems bill. As you may be aware, a couple years ago, over at the department, working with the leaders in the white house, we decided to bring together our three applied National Laboratories. Inl, national or noble energy laboratory, and the Idaho National lab. Yeah. And the National Energy technology laboratory. We wanted to see how it is that we can create these hybrid systems. What is it that each lab brought bring into an integrated, modern grid system . It needed to be flexible, have different fuels. It needed to be able to take advantage of a lot of the energy that is created. As you know, whenever you might have different forms of generation, you can create thermal heat. That thermal heat can be used for electrolysis to create hydrogen, different fuels. It was a comprehensive approach. The three labs got together and they we had several meetings on this. If you had an opportunity to collaborate on crosscutting technologies, what could you come up with . Many of the similarities that are incorporated in your bill we are excited to see that. The administration has not taken a position on the bill. We are prepared to continue to offer technical advice. But, as you say, it looks very familiar to what the minds at those three applied labs came together and identified as lines of effort that we can go forward, to really try to take advantage of what all these three labs are bringing together in our Energy Systems. Ch your vision is to be greatly commended as the world moves to converge into mostly nuclear energy, which it has to, unless theres something that we human beings havent heard about yet that can create energy. Thank you for that. Changing gears for a second. At one time, of course, the United States had the sole position on nuclear energy. Indeed, the Idaho National laboratory in my state, the first reactor was built. We still have the first three light bulbs that were powered by nuclear energy. Things have slowed down. The United States has a Nuclear Fleet of 90 plus sites that are actually being goin the goin the going the other way. Theres 50 Nuclear Reactions underway today. Every time a country decides they are going that direction, theres a lot of bidders. China, russia, france, were there. Give us your thoughts on how we. An continue to compete we know what our interests are broader than our competitors. We use whats called the Gold Standard and are interested in seeing that there is nonproliferation. Some of our competitors have no interest in that whatsoever. Give me your thoughts on that, if you would, please. Mr. Menezes thank you for the question, senator. Happy to do so. Nuclear power is an important industry not only for our current civilian Nuclear Fleet, but also, its important that we maintain the Global Leadership and the technology that goes along with building the Current Fleet and building, importantly, the next generation fleet. We know how expensive it is. Why is it that we should seriously look at this . The fact of the matter is that we have benefited from the fact that other countries have always looked to the u. S. To have the best nuclear technology. We had the highest safety. Tandards and Health Standards 120 would enter into a three agreement under the Atomic Energy act, which requires that countries that use to u. S. Technology agreed to nonproliferation and enrichment purposes. Now finding ourselves in competition with other countries china,ear technology, russia, the other countries you said. They are going in to the countries in the middle east, now that we are economic competitors of the middle eastern opec countries. They are turning to nuclear, rather than oil or natural gas electricity generation, because they want to preserve their oil and natural gas for export for their revenues. Now, its important to note you, when you do this, really are developing a relationship with that country becausetwo 100 years, it is the next generation technology, its the regulatory systems. Its educating them, keeping their expertise, making sure they understand the technology, they can operate the plants, and its all of this. Typically, it would involve a relicensing process. We, as americans, should care greatly that we continue to develop that expertise. When you look at what the department is doing, we are supporting the development of future technology by investing in the next technology. We think the small reactor is there. Congress has approved advanced test reactor so we can look at different fuels in the fuel cycle. Directed us to establish, fund, build, design a versatile test reactor, which goes to allowing the u. S. To continue its leadership. That will serve us well. It will serve the world well, so that other countries will not use other countries who dont share our values technologies. This will not require them to have Gold Standards in place for nonproliferation and nonenrichment. You. Or risch thank murkowski thank you for outlining that. It was good to see the department announcing the reactor demonstration program. We have been working on that for some time. Thank you, madam chair. I understand ito to be correct that in your existing position you have not had a chance to visit the doe facilities in new mexico at this point . Mr. Menezes i have not. I did have a trip planned. However, i was unable to make it out to new mexico. I would be remiss if i did not say, as things settle out, and obviously people are working at los alamos, sandia, and we are testing extensively that workforce i would be remiss if i did not invite you to come see those facilities when things become safe to do so. Mr. Menezes i would look forward to that opportunity. Senator heinrich one of the things im a little frustrated by, and ive talked to the secretary about this, maybe a little frustrated would be a dramatic understatement. I think its abundantly clear that the fiscal year 2021 budget request for cleanup work at los alamos is just not at an acceptable level. There is simply no valid justification for cuts of nearly 50 . Have you look at the budget request for environmental cleanup work at los alamos . Can you explain how the planned scope of work at los alamos can be executed with half of the resources . Mr. Menezes well, thank you for the question. First, let me assure you that we remain committed to cleaning up sites. Mos waste while i did not have a role in havelishing the budget, i been briefed on it in preparation for the hearing, so i know, generally, that we were in a situation where we were spending some carryover funds, if you will, and then we made a request and we received money in the fiscal year 2020 which we will also be able to spend. Senator heinrich lets drill down on this a little bit. Between my staff and the department, there continues to be a lack of clarity about just how much, if any, prior year carryover funding is going to be available to sustain that work next fiscal year. Can you provide me, for the record, the current amount of available carryover and the amount expected to carryover into fiscal year 2021, so we can figure out exactly where we stand . Mr. Menezes im happy to do that. Senator heinrich thank you. I want to complement secretary bruyette. I have spent a lot of time on the phone with him as a result of this emerging crisis, working of the hiccups in sort ability to be nimble in the face of the crisis at our National Labs, in particular. The labs are doing amazing, amazing work, some of it at the global level, some of it very focused on things like supply chain issues and establishing the safe practices for times when we were looking at the necessity to reuse ppe and issues like that. There have definitely been hiccups along the way, where the labs just were not able to cut through some of the red tape. For how tohave ideas streamline and remove the barriers that allow us to maximize the laboratories leaning into be the problem solvers for National Security issues, ranging from the nuclear to the Novel Coronavirus . Mr. Menezes thank you for that question. Indeed, you did describe a situation where the labs are both leading the world in many ways to try to find to combat covid19. And i know that you have been in contact with secretary bruyette. Indeed, he and i have had multiple conversations about that. I believe the answer is what you see in the way that the secretary has been handling your responses. He acts. We have a Good Relationship with the lab. We know the management and leadership over there. We are able to hopefully work with the governor, with your office so that we can get to yes, and we can get to yes in a rely onknow the ways that we have done it in the past. One thing that we have all learned is that we cannot continue to do business as you do. Powerfullabs are such weapons in the fight and i want to see that utilized to the fullest. That is what the workers want to do as well. They are bringing Solutions Forward every single day and we want to use those solutions. I am out of time, but i will let you know that i am going to introduce for the record that i have been very frustrated with statutoryf meeting deadlines when it comes to Energy Efficiency standards at doe. That is a question i will have you respond to four the record. Thank you. That has been a high priority of mine and i look forward to providing you answers to that. Chair. K you, madam thank you, sir, for joining us today. And for your willingness to serve. I would like to ask you a question about the renewable fuel standard. Specifically how you plan to exercise the department of energys crucial role in the small refinery exemptions during your tenure as deputy secretary. During your tenure as deputy secretary for the department of energy are you willing to consider past year applications and would you be willing to use the sinclair decision, scoring for compliance here, falling before the Court Decision date . Well, thank you for that question. As you know, we take our obligations to be in a consulting role. The smallnds us refinery exemption applications and we diligently review them and make determinations on eligibility regarding a disproportionate economic impact. Refineries. I want to point out to members of the committee that these are small refineries that are applicationmake the on the applications. I will be perfectly honest. Having been a part of some of the drafting that was going on in 2005 when it was put in place , drafting some of the waiver requirements, it was somewhat of a set somewhat of a surprise to see the 10th circuit decision, to be honest, where they interpreted server totain phrases where you had have requested for every year since 2011 an exemption. I think that that has created a problem with what epa is going to do. I can assure you that as epa sends over these gap filings, if you will, to be consistent with the 10th circuit decision, we will review them expeditiously and return them as promptly as we can to the epa with our determinations, as we have done in the past area and thank you, i appreciate your willingness to work as expeditiously as you can on that. Its an important issue. My governor, governor of utah, gary herbert, along with several others recently sent a letter to the epa administrator asking him to invoke paragraph seven of the act. Allowing for the administrator in consultation with the secretaries of agriculture and energy to waive the requirements of the mandate in part based on a determination by the administrator at the implementation of the requirements severely harming the economy and the state, region, or United States. How engaged has the department of energy been on this particular issue so far . Can you give me some estimates, some forecasts as to when we might be likely to see a response on this subject . Well, the department of energy along with the department of agriculture has been engaged on these issues throughout the entire administration. It has been an important issue for President Trump, who wants to make sure that he can take in the both the refiners United States as well as the ethanol producers. It has been a key priority for the administration. Reo our voe to,er is again consulted along with the u. S. Department of agriculture. The department of energy role but however im sure tot we will, when epa begins act on it we will provide our , youtance in evaluating know, the application. I will say is a little bit different from the disproportionate hardship impact on a small refinery. This is a severe economic harm to a state, region, or of economy. Speaking of disk differences, how does the research and development conducted by the department of energy compared to or different from the r d conducted by a private company . Biggest difference is that the role of the department one, for basic research to do on technologies that the private sector but i do not have the resources or willingness to go through. They would not have the capacity that we have to take the risk. Logical they will invest in things that might improve their products or could be a breakthrough product, but the Government Role is to see what Breakthrough Technology might result in new products. Thats the role that we see the. Overnment should play in r d its more basic r d at the early levels of the technology, readiness levels as opposed to andg a lot of research maybe Technology Ready level nine, where someone is commercially available. You know, that would not necessarily be a rolled we see. However, its always important to ensure that the technologies we develop can be commercially deployed at some point. We established the office of Technology Transitions to allow that to take place. We do server role, to try to the Technology Developed through Research Dollars at the department and through public right of her ships, to get it out into the industry and the commercial world. Thank you very much. Thank you, senators. Thank you, madam chair. Welcome. [indiscernible] i have not. [indiscernible] i have not. Is estimated that 600,000 workers have lost their jobs between march and april. [indiscernible] a 36 decline in jobs. [indiscernible] [indiscernible] in the meantime, what are you going to do for the energy . Ector thank you for that question. Allow me to tell you what we have been doing of late syria during the covid19, for example, in this is what i know the article related to it, the secretary and i basically ordered all departments to look across, including Energy Efficiency and renewable Energy Office, to see if we could forbear any of the costs share payments, for example on some of the renewable project that we fund and go out. Maybe we can negotiate with them , perhaps pushhare milestones or timetables out. We have also worked with the Loan Program Office to see if they can also give some kind of forbearance, if necessary, on those spaces in the Loan Program Office. We also asked of Loan Program Office to go out and solicit those that might be interested in making applications with the department that we could consider. We were taking that role. , sincering covid19 march we have issued several folios. We have been pushing them out in rapid fashion. We have issued i think three solar folios. These are funding opportunity announcements. [indiscernible] continue to report to the renewable Energy Sector and the fossil fuel side [indiscernible] you absolutely have our commitment, i think our record speaks for itself on renewables. Thank you. Next good. [indiscernible] the National Security of the United States. Thank you for that question. Yes, we absolutely believe [indiscernible] as required by the whistleblower protection act. We will certainly comply with the law. [indiscernible] is it appropriate for the president to fire those within again, wet . Will follow the law at the department. [indiscernible] i do have one more question and reserve my time. Thank you. Thank you again for being here. Louisiana is very proud to have two that the top of the office. You also know that louisiana has been one of the states hardest hit by the demand destruction for oil and to a lesser extent for natural gas. As a former roster about you understand the implication for family livelihood. Ifre is a responsibility, you will, to get the Energy Economy going back to work. Some of that is related to how we get the economy going again. But to what degree the field that expanding those stories through other options may help to preserve those jobs . We are all in this together and i think all departments have an obligation to get u. S. Workers back to work in whatever way they can at the department. We have identified the authorities that we have for congress to provide the resources that we can purchase, u. S. Produce oil, for example. Its interesting to note that Congress Gave as authority for one billion barrels of capacity and we currently have physical capacity total of 713. Congress decided to give us Additional Resources and we could build that out to have additional storage so that we can have the capability of putting u. S. Produce oil when necessary into storage. Thats one thing. We would then have the benefit of employing u. S. Workers as well as providing future Storage Capacity Going Forward. Thats one thing to consider. As other of course is that chairman murkowski pointed out, lng facilities continue to make their way through the regulatory process and we commit to do our ,eview on that so that we can where it is economically feasible to do so, have the facilities in place and add u. S. Jobs. In many ways, you heard what i was saying to the senator. We have been pushing up the funding opportunities that resulted in jobs and projects and we are willing to do whatever we can with the authorities and resources that we have. You mentioned the increased Storage Space in the caverns. Will the department be issuing further notices regarding least cabin space . At this point we have been several requests to consider additional places for storage. All of those places are being studied, they are being looked at. As i mentioned, in each instance is likely to take some investment. We will have to do some structural improvements there. It wont be a nearterm solution storageurrent requirements or needs. But it is certainly worth the investment in the longer term to make these investments and get americans back to work, creating additional storage in the future. An additionalyou question, of the space that you have, will you be leasing any more of it to producers . Well, we currently havequestu have, will you be leasing any more of it to producers . A, the rfp out for the purchase of up to one Million Barrels. Thats the purchase of a Million Barrels. As you are probably aware, we had completed an rf the four leasing the space. We had 23 Million Barrels so of the 77 million, we will probably buy another million. You could say that we would have 53 Million Barrels available and we will be looking at options Going Forward. Speaking about Carbon Capture projects, theres ancillary Infrastructure Associated with that. Can you describe the regulatory challenges in building pipeline and how the federal government can help to reduce the burden for that associated infrastructure . Thank you for the question and the opportunity to elaborate on that. The pipelines were necessary for the transporting of co2 off of an existing plant and it would go to either enhanced oil recovery, geologic sequestration. Pipelines, like all pipelines, in this country well you may have a certificate or certain permits, it is very difficult to get the Regulatory Approvals that you need. All is something that states should look at when they look at pipelines her purpose. For each purpose. States should be using their powers to get a yes and not to be an obstruction the pipelines. Music to my years. Madam chair, i yield back. Senator king. You have your mute button on. Go ahead. Talking about data, im trying to be very sustained here. First i want to thank you for your service. You have done a great job at the department and i think have been a real asset. Speaking earlier this month about a fairly significant accomplishment, one of the things you mentioned was the betweenship [indiscernible] the universities. Oak ridge and the university of maine really established that relationship on advanced manufacturing, the largest free 3d printer in the world is at the university of maine. I want to commend the project to you. I hope thats ok, that you may pursue and emphasize your work with the university. We would love to have you come to the university of maine and as 3d printer. I would love to do that. I know that they were awarded three guinness book of World Records for the largest reprinted device. Congratulations on that and i look forward to going up there to actually being it. And i hope you can see this relationship memorialized in a more Permanent Program next year. If we could keep that in mind. Thats oak ridge together with the delegation that remains. As you know. Turning to another specific issue, one of the most important areas of research that you emphasized is energy. Not just the oil kind, but the electricity kind area and i know you have done a lot of research in that area. Something that worries me about that however is the supply chain of minerals necessary and i hope that that can part of be a part of the research and discussion here taking place. Upon were dependent [indiscernible]. Hat could be a real problem thank you for that question. Our initiatives have been comprehensive and crosscutting as well as collaborative. One of them is the materials initiative. As you mentioned, the goal there supply andsify potentially find substitutes into these more efficient usages. Its a more collaborative effort with several of our offices and we look forward to working with you on that. On the fundamental role of , thenment Research Investment doesnt take [indiscernible] underpinning to the basic research that leads to breakthroughs that the private sector can run. , i spent quick point the last year working with cyber security. The electric grid in this nation has worked very hard to maintain their levels of cybersecurity and it worries me that we dont have and i dont see the equivalent of a gas Pipeline System. A gas Pipeline System is a part of the grid. I think that when you are thinking of cybersecurity in the department of energy, if we had , itberattack on our systems would be truly catastrophic. Thank you for that observation and i believe question. I will tell you that congress designated us as the Sector Specific Agency over the, you know, the Energy System. As a result of that, we have regular meetings with and have established a great working relationship through the Caesar Office with oil and gas sectors specifically. We are also working with ferc on that. Get with the oil and natural gas folks. Together we jointly work with the industry to make sure that they have the latest cybersecurity protections and are aware of the threats. We share these threats with them frequently and let them know when our risk level exceeds the amount on any equipment that might be it on their systems and i think we have a good working them and tradeth associations there and we will continue to remain to be very vigilant about that because as you indicated, our Energy System has become more targeted on Cyber Attacks and we take that very seriously and are doing what we can to make sure that the Energy Systems, including oil and Natural Gas Pipelines remain safe and secure. I like the word vigilant. Keep that in mind. Thank you. Thank you. Lets turn to [indiscernible] i want to thank secretary theies for being here and work that hes been doing an active capacity. A couple of items that you commented on first, petroleum , bipartisanslation in the senate and the house, it provide funding and authorization for strategic reserves. Do you support that legislation and are there any other aspects to it that you think should be included . Thank you for that question and for your leadership and willingness on this. This bill, were it to be enacted, would provide us with sufficient revenues needed to purchase oil and put it into the Petroleum Reserve from u. S. Producers, which is our goal. 45 q, something you have been working on, you know i have been working on it as well. These address the importance of getting the rule in place for that. Thank you for the opportunity. As i mentioned before, this is a great opportunity to unleash the capital to take advantage of these tax credits to put in place economical Carbon Capture technologies to capture the carbon process and put it either in permanent storage or into oil recovery. We have been working very digital diligently, as you know, with the irs and the department of treasury to make sure that we can get this out. It is my understanding that it is forthcoming and we are looking forward to the release. Do you feel like projects like project tundra and the Partnership Relationships that institutions in the Higher Education system, like the university of north Dakota Energy Environmental Research center, do you think that those are important tools for you to continue to develop Carbon Capture and sequestration and do you support them . We do and they are key. Its a great relationship to be able to have with our universities. We are particularly pleased with the one we have had for years in north dakota. You mentioned the cc u. S. , but there are other technological advances and research that can be done there with project andra and with the Energy Environment Research Council of there. You have unique geologic formations there in north dakota, for example and i think the Work Together with that university, with that organization, resulted in north dakota being able to be at the forefront of the unconventional shale plane. Are you concerned about early closure of medical baseload assets and the impact it will have on the reliability and resilience in the grid . Thank you for the question. We are concerned about the premature closing of baseload units. Whether it is premature or coal, natural gas or in part because of some of the pricing mechanisms that have been in place. Certainly under the leadership he haschairman, attempted to address these inequities, if you will, in the market formation around the country. In supportn working of that to get policies in place to make sure that the costs of providing electricity is reflected in the costs and that all types of fuels would be treated equally when it comes to pricing. Thank you, secretary. I appreciate your work and look forward to working with you. Thank you. [indiscernible] i want to take the opportunity to address the complications that result, so what we are going to do is address the permanent storage. In a permanent [indiscernible] i appreciate the opportunity to talk to you over the last couple of days. Let me be clear about this. The president has been very clear on this. The administration will not be pursuing Yucca Mountain as a solution for Nuclear Waste and i am fully supportive of the president s decision and i applaud him for taking action when so many others failed to do so. Thank you. Can you address the administration [indiscernible] yes, so as you are aware, in the budgets, in the president s budget request we have requested a 27. 5 million to make sure storagehave the interim program in place that will be a comprehensive approach to looking at finding a solution and implementing one that is andible for both interim permanent storage down the road, spentl as to handle both nuclear fuel and highlevel waste. We are going to engage all stakeholders and we look forward to working with the stakeholders as we go through to put together a comprehensive, durable, flexible plan. Thank you. Let me follow up with that. You know i was on the delegation [indiscernible] giving a voice [indiscernible]. Torage [indiscernible] i appreciate the chairwoman and , so let me member ask you this [indiscernible] ensure that every state can have a voice [indiscernible] thank you for that question. That the bills are under review. I myself are not and not that familiar with them, but i promise to look at them and offer any technical assist i can. The administration has not taken a view or a position on them. However we do know that the storage for nuclear will rest with congress and we aspledge to work with you you develop the legislation. We will provide the Technical Assistance as necessary and we will certainly be able to Work Together to accommodate all stakeholders. 2020, [indiscernible] house and senate with a rope or for the submission of highlevel with the options that are possible for considered stakeholders. [indiscernible] of the updatedre status, but if you allow me i will report and report back to you. [indiscernible] thank you, senator. This concludes the first round. [indiscernible] workforce training, covid was on [indiscernible] i have one last question. [indiscernible] in my state program. Ts an energy that is robust an opportunity for the department to do a lot more for their efforts. Relationshipg [indiscernible] and from what we can see, there are many communities with these replyces in which we can for those requirements. Very quickly, your thoughts [indiscernible] i think the director has the job and as you are aware, we have also made a Program Policy factor different from other administrations than if you were , if you had high energy costs, you could be, it could be something to consider in grant for a funding opportunity. Also whether or not you were a firsttime applicant or recipient and under both of those scenarios, you know, we were pleased to inform you that for the first time we had an alaska native, you know, win these funding opportunities and in the past they never had the opportunity. So, now that they have them, the question, as you point out, and we do share your concerns about the 5050 costsharing. Thats for applied funding opportunities, if you will. That does put a burden on the recipient. While we have some flexibility in negotiating the costs share, the secretary and i have the record the Energy Office to look at all applicants and can to consider using the secretaries authority to, to renegotiate the costs share obligations. We are in the process of doing that right now. It is subject to current available funds, but we have begun the process and we are happy to continue it. I appreciate [indiscernible] raised today [indiscernible] responded [indiscernible] talked to these folks about the future [indiscernible] any followup. Thank you, madam chair. Thank you for being here and for doing a great job in answering direct. Thats what we like. I have one final followup, if we could. For over a decade the department toenergy had a loan program commercialize advanced Energy Technologies with a default rate that is lower than most conventional banks and providing 2 billion in interest to the treasury but there are currently billions in unused loan authority, a deal that we could use to help build the next generation of energy infrastructure. From thek to recover downturn that we have had in the economy, this is going to be an important tool that we already , if we dor toolbox nothing else. Which we will. The Accountability Office found last year that the loan program obligated only 8 in fiscal year 2018 and only 40 in fiscal year 2019. I expressed in concerns to the secretary at the Budget Hearing sharing that he should initiate a formal review of the program and is for irelands, so my question would be, can you provide me with an update on the formal review and share what is being done to make sure the program is obligated for appropriations . For the question and we share your concern about the loan appropriations office having resources without getting money out the door, so to speak and we have requested outreach on that. One thing to consider is that, you know, the Loan Program Office initially included in the Energy Policy act of 2005 and later amended by congress has several statutory requirements to meet before any applicant is qualified to receive any funding. Omissions. Lower the , that it is new technologies. Traditionally, these are, if you will, very technical hurdles to meet. So what we have done is we have asked for a review, a review of , allow regulations and our policies to see if there is anything we can do on statutory requirements if i can interrupt if i may, that usually tells me that when there is such little participation with the funding that you could put out the door, something has happened to where the way that they apply, the amount of bureaucracy that might be involved, which is what you are looking into and i applaud you for that, something is stopping us from being able to engage in use the fund for what it was intended to. You said, new technologies, things that can be brought forward to the energy market. The grid system. So many things, stories and west virginia. The Storage Capacity from liquid gas, for natural Gas Production would be tremendous for manufacturing. We have had a hard time. We were notified that this was being considered but it has been a couple years. We are looking into it, our team has done some list. And we want to help you. Tell us what we can do to help you. I guarantee you that the chairman and myself will do all we can to help you. We are going to share all of that with omb and see if we can come up with recommendations Going Forward. Thank you for coming today. Thank you. As i mentioned, you have done a good job, a thorough job. You have responded [indiscernible] thank you for that. That we were on the energywork bill and we hoped to be a will to move across the finish line and update our Energy Policies and a way that was deemed necessary and we look forward to anying with you to address outstanding matters that you have. [indiscernible] after a almost standing driver, we look forward to working with you. I want to thank you for being here, thank your family for supporting you. Not only in your current , but i also look forward to advancingyou. And i would hope that you would enjoy the supporthlevel [indiscernible] madam chairman, i also want to say also [indiscernible] be submitted to the committee tomorrow. Were also closing the work of the technical experts [indiscernible] nomination [indiscernible] thank you. Thank you. Some ice to meet you. [captioning performed by the national captioning institute, so nice to meet you. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] [captions Copyright National cable satellite corp. 2020] tonight, testimony from epa administrator Andrew Wheeler on his administrations role during futureonavirus and priorities before the Senate Environment and public works committee. See it at 9 p. M. Eastern on cspan. Future priorities before the Senate Environment and public works with the federal government at work in d. C. And throughout the country, use the congressional directory for Contact Information for members of congress, governors, and federal agencies. Order your copy online today at cspan. Org store. The u. S. Senate is in session this week as members continue to debate and vote on several judicial and executive nominations and as of now the chamber has no plans take up the 3 trillion Coronavirus Relief act which passed by the house last friday. Follow the senate live on cspan two. The u. S. House is no boat scheduled for the week that they plan to return wednesday, may 27 for a debate on reauthorizing the Foreign Surveillance intelligence act, passed last week why the senate. You can watch the house live on cspan. Sunday night on q a, jeff quit discusses his book called the vagabonds, about the summer road trips taken by Thomas Edison and henry ford. The idea was to take a car trip into the everglades. It would be an adventure. It was pointed out to them that there were no roads there, it was dangerous, alligators and worse, people could die. But they knew better. The trip lasted a day and a half. It was a monsoon. There were snakes, they were alligators that they fled. But they liked the idea. About that they would take a trip once a year if they could, but with better planning. Sunday night at 8 p. M. Eastern on the cspan q a. Up next, House Speaker nancy pelosi holds a News Conference to discuss the legislative agenda, including negotiations over economic aid in response to the coronavirus. This is 35 minutes