Transcripts For CSPAN3 Energy Secretary Rick Perry Testifies

Good morning everyone. The committee will come to order. I apologize for the delayed start, but hopefully we will have an opportunity to hear from the secretary and learn of the president s views for the department of energy. Secretary perry, i want to welcome you to your first hearing following your bipartisan confirmation here in the senate. While it took us a little bit longer than wed hoped to get you in this role, were glad to have you at the helm. We look forward to helping you get a full compliment of folks there at the department as well. The budget request for the department of energy takes a different approach this year than weve seen in the recent past. The president has made a concerted effort to increase funding for the National Nuclear Security Administration to focus on our Nuclear Weapons program. This is a portion of the department that falls outside the scope of our committee here. The administration has also requested robust funding for the cleanup of Nuclear Waste left behind by our countrys cold war legacy. To offset those funding increases, the budget request proposes deep cuts to research and development for energy and science. It also proposes to phase out innovative programs such as arpe that have demonstrated success. I understand what drove this proposal, but im also concerned by certain parts of it. The United States is the world leader in science and energy. We like it that way. We want to keep it that way. And at the core of that excellence is the work done at our National Labs and universities by the men and women who dedicate their careers to furthering science. Members on both sides of this Committee Want to maintain and strengthen that leadership. So we need to be careful that we dont get in the way of the good work or the proper role of the private sector. But keeping that in mind, many of us have found good bipartisan opportunities where it makes sense to increase funding for r d. I appreciate the need to derive savings and balance our budget, but that cannot come at the expense of our efforts on Energy Innovation. Good science should not sit on a shelf, and the department should continue to push the limits of science in order to ensure that the next generation of Energy Technologies is developed here in this country. Although i do not support all the proposals in this budget request, i believe we do have some areas of agreement here. I also believe we can undertake reforms at the department to help save taxpayer dollars. Our work on the loan programs is a good example i think of how that can work. My goal for the department of energy is to drive down the costs of emerging precommercial technologies to make energy more affordable, reliable, clean, diverse and secure. Take you back to energy 2020, those principles havent changed. And its particularly important for alaska where energy costs are orders of magnitude above those in the lower 48. So secretary perry, again, thank you for being here this morning. I hope to be able to host you up in the state soon. I know that youve made similar commitments to colleagues in the congress here. Look forward to hearing your priorities outlined before the committee this morning. And i turn to our Ranking Member senator cantwell. Thank you, madame chair, for holding this hearing. And welcome back, mr. Secretary. The department of energy is a Global Leader in science and technology with an unrivalled network of National Laboratories. It is also key to our National Security when it comes both to nuclear and cyber threats. The president s budget proposes to slash many of the does essential programs and it would devastate emerging Clean Energy Jobs in our economy. It would kill science and innovation in the jobs that d. O. E. Supports. The budget would raise electricity rates in the Pacific Northwest, i guarantee you a number of people on this committee will not be supportive of that by auctioning off federal utility assets. The budget would undermine u. S. Energy leadership in a sector that is posed to grow millions of jobs around the world, and according to the International Energy agency more than 30 trillion will be invested in new Renewable Energy facilities and Energy Efficiency between now and 2040. So weve heard a lot about the socalled Energy Dominance from this administration. Id like to hear a lot less about exporting commodities than even nations like china are starting to have major blowback on and pledging more on how we are going to focus on winning the opportunity in Energy Efficiency, advanced technologies and things that consumers and businesses around the world are pledging commitment to. As this committee recently showed the cost of clean Energy Technologies have dropped between 41 and 94 since 2008. I was very proud to join the chair on a recent northwest trip where we saw Energy Efficiency helping businesses save dollars and also how grid microgrids in alaska are looking for every advantage they can get in driving down the cost of energy. The Success Stories have been built on decades of strategic investment by the department of energy. And this is something that both democrat and republican administrations have supported. But President Trumps budget is a break in that bipartisan tradition. Its an attempt to turn back the clock on energy policy, i think, at the expense of the future. During your confirmation hearing you committed to protecting science, protecting the men and women who conduct that science and advocating for our National Labs. So i have great concerns for a proposed cut that could affect as many as 1,000 people at the Pacific Northwest laboratory. But specifically this budget poses to eliminate rpe which is the advanced high potential high impact Energy Technologies that are too early for the private sector to either take on or advance, critically important to our nation. Eliminates the Weatherization Assistance Program and state energy program, which provides critical state assistance to 50 states to help them. Draconian cuts to the applied Energy Research program such as the 70 for the office of Energy Efficiency and Renewable Energy and 48 for the office of electricity, delivery in electricity reliability. I guarantee you thats something everybody across the board here cares about. And 17 cut from the office of science, which is the largest federal sponsor of basic science and physical science. This week you questioned the certainty of Science Behind Climate Change. And during your confirmation hearing you said im going to protect all the science, whether its related to climate or whatever aspects we are going to be doing, end quote. So, mr. Secretary, with all due respect, i want to make sure you and your office has all the information you need on science. Your Budget Proposal slashing the biological and Environmental Research within the office of science, the office that supports Climate Research by 43 , and another troubling area is the important priority for d. O. E. On Energy Infrastructure. Our grid and our Energy Networks are under cyber attack from 2012 to 2016 the number reported incidents against u. S. Critical infrastructure more than doubled. And according to the Washington Post story last week, russian government hackers have already shown their interest in targeting u. S. Energy and utility systems. So this threat to our grid is clearly growing, and this morning i along with 18 of my colleagues are sending a second letter to the president reiterating that d. O. E. Should address this growing threat on our critical infrastructure. During your confirmation hearing you assured me that the committee assured me and the committee that Cyber Security would be your top two priorities, nevertheless your budget slashes by 30 . So i want to see a larger investment in this very, very critical area to our infrastructure. Id like to mention i know my colleague from washington had a chance to talk to you about hanford funding yesterday. And im credibly disappointed to see the administrations approach to the hanford cleanup in light of the recent tunnel collapse at the plutonium uranium extraction facility followed by worker take cover at the finishing plant and operations budget being cut demonstrates disregard for the health and safety of the individuals who are working in our state. The Trump Administration needs to understand that if we do not prioritize hanford funding and the potential for safety and security, we are going to have issues and serious problems. These recent incidents are a wakeup call for the administration. And thats why im working to ensure that the resources are there for the public. Now, i know that ill have probably a little sheet here somewhere of all the ideas and schemes that people have come up with in the past. We had secretary watson delay the vit Plant Construction in 1991 to reconsider the waste and pretreatment plant, for two years Clinton Administration planned operation of the plant to pay contractors, we saw secretary abramson try to accelerate cleanup by calling waste in the tanks and calling it good. We saw science experts review the vit plan. We had secretary monise explore new ways of treatment. All im saying is every Energy Secretary comes into office pressured, pressured more by some omb person who knows nothing about science trying to do cleanup on the cheap. I guarantee you it cant be done. We have to remain resolute and committed to cleaning this up and based on science. So i look forward to asking more about that. But i know that many of my colleagues throughout the Pacific Northwest both on this committee and on the Appropriations Committee will have a lot to say about our priorities for hanford. Thank you, madame chair. Thank you, senator cantwell. Secretary perry, its good to have you before the committee. I will note that allison dune is with the secretary this morning, shes the acting chief Financial Officer for d. O. E. I understand that you will not be providing testimony this morning, but thank you for being here with the secretary. And, mr. Secretary, with that if you would like to begin your remarks so that we can turn to questions. Senator, thank you. And its a privilege to be in front of you and the committee again. Senator cantwell, members of the committee, its my privilege to be here, an honor to discuss president excuse me, President Trumps fiscal year 2018 budget request. As each of you know, it is a great privilege to serve as this 14th secretary of energy. As a former legislator, i might add an appropriator as well, and the governor, i am very respectful of the budget writing process and know the importance of the work that youre undertaking. I look forward to working with you to finalize a budget that we can all be proud of and that serves the taxpayers of this country as well. In my three and a half months as secretary of energy, i have seen firsthand the impact of the departments leadership, both domestically and internationally. Ive traveled around the country, been into some of your states, and senator cantwell, i intend to get to hanford asap, most likely this summer, to look at that, to talk to the men and women who are working there, visit with those brilliant individuals that are on site that i happen to take a lot of faith in their knowledge of whats needed and how to address these issues that are driving their mission. So i look forward to being in a lot of your states over the course of the next months ahead. These labs truly are, as you have all noted either today or in previous conversations are national treasures. Theyre the future of innovation in this country. And i have been in absolute awe of the diverse scope of the departments mission and the consequential work that we are charged with undertaking. Ive also traveled overseas representing the United States at the g7 meeting in rome and then in beijing for the Clean Energy Mission innovation ministerials. I had the opportunity to visit japan and meet with leaders and stakeholders about the future of the Energy Partnership that the u. S. And japan has. And on a very somber note, i toured the site of the fukushima disaster and saw firsthand the absolute Monumental Task that they have before them. My trip to asia coincidentally began on the day that President Trump announced that we would officially withdraw the United States from the paris agreement. I delivered his message to the world that even though the u. S. Would be no longer a part of the paris agreement, we are still the leader in Clean Energy Technology and we are committed to that mission. The department of energy does many things well. America has remained on the forefront of technology for over 40 years because of the amazing men and women at these labs. Mr. Heinrich, you particularly understand this with the two you have in your state. They wake up every day knowing that they will make a real difference in the world. And i told them the first time i met with them that the greatest job i ever had was being the governor of texas. But after working here, ive come to realize that secretary of energy is officially the coolest job ive ever had, senator. Under my leadership our experts at d. O. E. Will continue their work for the benefit of every american and our allies alike. As secretary of energy, im also a member of the National Security council. This council supported by d. O. E. In its mission to keep our nation safe. President trumps fiscal year 2018 budget request for the department of Energy Provides 28 billion to advance our key missions and focuses excuse me, on important investments including ensuring the safety and effectiveness of our Nuclear Weapons arsenal, protecting our Energy Infrastructure from Cyber Attacks and other threats, achieving exscale computing and focusing the Amazing Network of our National Laboratories on Early Stage Research and development. And my goals are straightforward, advance our nations Critical Energy and scientific r d missions, strengthen our nuclear security, fulfill our Environmental Management commitments. I just painted you a rather rosy picture. And while there is a lot of good news to report, there are other hard conversations that we need to have. As youre well aware. There are approximately 120 sites in 39 states that are storing spent nuclear fuel or high level waste. In fact, many members of this committee have waste in their states. We have a moral and a National Security obligation to come up with a longterm solution, finding the safest repositories available. This is a sensitive topic for some, but we no longer can continue to kick the can down the road. As a former legislative appropriator and agency head and governor, i understand how important following the rule of law is. Ive been instructed to move forwards towards that goal. The president s budget requests 120 million to resume Licensing Activities for the Yucca Mountain Nuclear Waste repository. We need to be stewards of the taxpayers, congress spent 5 billion on the mox project way over budget with no end in sight. The army corps of engineer estimates cost of 17. 2 billion and a 2048 completion date. The money appropriated for this project is money that could be used towards other priorities, like National Security or cleanup at other sites. There is a better, cheaper and proven way to dispose of plutonium. In fact, were using that process now. I look forward to having an ongoing dialogue with many of you about these tough but important issues in the days and months to come. This Budget Proposal makes some difficult choices, but it is paramount that we execute our fiduciary responsibility to the american taxpayer. The president s proposed priorities dealing with the core mission of the department