[Senate Hearing 107-82]
[From the U.S. Government Publishing Office]
S. Hrg. 107-82
BLAKE, CARD, CARNES AND GARMAN NOMINATIONS
=======================================================================
HEARING
before the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED SEVENTH CONGRESS
FIRST SESSION
on the
NOMINATIONS OF FRANCIS S. BLAKE, NOMINEE TO BE DEPUTY
SECRETARY OF THE DEPARTMENT OF ENERGY; ROBERT G. CARD, NOMINEE TO BE
UNDER SECRETARY OF THE DEPARTMENT OF
ENERGY; BRUCE M. CARNES, NOMINEE TO BE CHIEF FINANCIAL OFFICER OF THE
DEPARTMENT OF ENERGY; AND DAVID GARMAN, NOMINEE TO BE ASSISTANT
SECRETARY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY OF THE DEPARTMENT
OF ENERGY
__________
MAY 9, 2001
Printed for the use of the
Committee on Energy and Natural Resources
__________
U.S. GOVERNMENT PRINTING OFFICE
73-676 WASHINGTON : 2001
_______________________________________________________________________
For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC
20402
COMMITTEE ON ENERGY AND NATURAL RESOURCES
FRANK H. MURKOWSKI, Alaska, Chairman
PETE V. DOMENICI, New Mexico JEFF BINGAMAN, New Mexico
DON NICKLES, Oklahoma DANIEL K. AKAKA, Hawaii
LARRY E. CRAIG, Idaho BYRON L. DORGAN, North Dakota
BEN NIGHTHORSE CAMPBELL, Colorado BOB GRAHAM, Florida
CRAIG THOMAS, Wyoming RON WYDEN, Oregon
RICHARD C. SHELBY, Alabama TIM JOHNSON, South Dakota
CONRAD BURNS, Montana MARY L. LANDRIEU, Louisiana
JON KYL, Arizona EVAN BAYH, Indiana
CHUCK HAGEL, Nebraska DIANNE FEINSTEIN, California
GORDON SMITH, Oregon CHARLES E. SCHUMER, New York
MARIA CANTWELL, Washington
Brian P. Malnak, Staff Director
David G. Dye, Chief Counsel
James P. Beirne, Deputy Chief Counsel
Robert M. Simon, Democratic Staff Director
Sam E. Fowler, Democratic Chief Counsel
C O N T E N T S
----------
STATEMENTS
Page
Allard, Hon. Wayne, U.S. Senator from Colorado................... 4
Allen, Hon. George, U.S. Senator from Virginia................... 3
Blake, Francis S., Nominee To Be Deputy Secretary of the
Department of Energy........................................... 10
Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado........ 5
Card, Robert G., Nominee To Be Under Secretary of the Department
of Energy...................................................... 12
Carnes, Bruce M., Nominee To Be Chief Financial Officer of the
Department of Energy........................................... 13
Domenici, Hon. Pete V., U.S. Senator from New Mexico............. 3
Garman, David, Nominee To Be Assistant Secretary for Energy
Efficiency and Renewable Energy for the Department of Energy... 16
Murkowski, Hon. Frank H., U.S. Senator from Alaska............... 1
APPENDIX
Responses to additional questions................................ 29
BLAKE, CARD, CARNES AND GARMAN NOMINATIONS
----------
WEDNESDAY, MAY 9, 2001
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The committee met, pursuant to notice, at 9:35 a.m. in room
SD-366, Dirksen Senate Office Building, Hon. Frank Murkowski,
chairman, presiding.
OPENING STATEMENT OF HON. FRANK H. MURKOWSKI,
U.S. SENATOR FROM ALASKA
The Chairman. Ladies and gentlemen, we're certainly pleased
to have two of our colleagues here this morning. And, as a
matter of courtesy, we generally have name plates for our--
obviously the staff has a little oversight. In the interest of
senatorial courtesy, I suspect we'd better just wait for a
moment until we get this done. Because I think it's in the back
room.
We have a vote scheduled at 9:30 this morning. Is it 9:35?
And I know that I want to get started. Maybe the easiest thing
to do would be to have the senators introduce their particular
nominees.
Our nominees this morning are Francis S. Blake to be a
Deputy Secretary of the Department of Energy. Robert Gordon
Card to be Under Secretary for the Department of Energy. Bruce
Marshall Carnes to be Chief Financial Officer, Department of
Energy. And David Garman to be the Assistant Secretary for
Energy Efficiency & Renewable Energy, the Department of Energy
Now, who's introducing who? That leaves me with Garman?
Well, if anybody wants to introduce--volunteer to introduce
Francis Blake, he doesn't seem to have drawn a Senator which is
unfortunate. Evidently, Senator Allen and Senator Campbell are
going to introduce Robert Card. And Bruce Carnes. And who else?
We've got it now.
Card is by Allen--Card is by Allard, Carnes is by Allen,
and I think with such a fumbling start it's better to turn it
over to the senators and let them proceed.
Do you have any--do you want to try this?
Senator Bingaman. I'm anxious to hear from our colleagues
what their thoughts are on that.
The Chairman. All right. Let's go with that. Please
proceed. I guess, Senator Allard, you're senior.
Senator Allard. Actually, Senator Campbell is senior, Mr.
Chairman, but it's his call.
The Chairman. It's his call.
Senator Campbell. Mr. Chairman, you've fumbled everything
so far. Don't worry about one more little fumble. It's okay.
The Chairman. It's got to be uphill from here. Whatever.
Senator Campbell. If you want to go alphabetically, I think
I fit in.
The Chairman. I'd suggest somebody grab it and run with it.
Go ahead.
[The prepared statements of Senators Murkowski, Domenici,
and Allen follow:]
PREPARED STATEMENT OF HON. FRANK H. MURKOWSKI, U.S. SENATOR
FROM ALASKA
Good Morning. Today we are holding a hearing on the nominations of:
Francis S. Blake, to be Deputy Secretary, Department of
Energy
Robert Gordon Card, to be Under Secretary, Department of
Energy
Bruce Marshall Carnes, to be Chief Financial Officer,
Department of Energy
David Garman, to be Assistant Secretary for Energy
Efficiency and Renewable Energy, Department of Energy
Mr. Blake is presently Senior Vice President of Corporate Business
Development at General Electric where he has served since 1991. Before
joining GE, he was a Partner with the law firm of Swidler & Berlin in
Washington, D.C., and served as General Counsel at the Environmental
Protection Agency from 1985 to 1988. He served as Deputy Counsel to
Vice President George H.W. Bush from 1981 to 1983. A resident of
Connecticut, he is a graduate of Harvard University and Columbia
University School of Law.
Bob Card is employed by the Kaiser-Hill Company in Colorado, and
until recently was President and CEO of that company. He was previously
Executive Vice President of CH2M Hill, Inc. A native of Yakima,
Washington, he is graduate of the University of Washington and received
his Master's degree in Environmental and Civil Engineering from
Stanford University.
Bruce Carnes is currently Deputy Director of Defense Financing and
Accounting Services at the Department of Defense and was awarded the
DOD Exemplary Civilian Service Award. He served as the Director of
Planning, Budget and Administration at the Office of National Drug
Control Policy from 1989 to 1993 and was Deputy Under Secretary of
Education from 1985 to 1988. He is a graduate of the University of
Colorado and received both a Master's degree and Ph.D. from Indiana
University.
David Garman is particularly well known to me and I will introduce
him in more detail following members' opening statements.
I trust that members will try to keep their opening statements
short so we can maximize our time for questioning the nominees.
I look forward to working with each of these nominees once they are
confirmed.
INTRODUCTION OF DAVID GARMAN
It is a pleasure for me to introduce one of the nominees before the
committee, David Garman. The President has nominated David to serve as
the Assistant Secretary of Energy for Energy Efficiency and Renewable
Energy.
David now resides in Virginia and the usual custom would be for
Senator Warner or Allen to introduce him--but I am invoking the
prerogative of the Chair and citing a special circumstance in
introducing David today.
David has worked with me--for Alaska--since the day of President
Ronald Reagan's first inauguration--January 20, 1981. For over 20
years, David has served in a variety of capacities, most recently as my
Chief of Staff. He was my Energy LA in the early 1980s when this
committee worked to decontrol Natural Gas Prices. He was my
Professional Staff Member on the Senate Select Committee on
Intelligence when we were examining the capabilities of intelligence
assets in understanding issues such as climate change and trans-
boundary pollution from the Former Soviet Union. He also served on the
Professional Staff of this committee, working on a variety of energy
R&D and environmental issues.
David has a Bachelor of Arts in Public Policy from Duke University,
and a Master of Science in Environmental Sciences from the Johns
Hopkins University. He has been working on energy and environmental
issues in the Senate for the better part of 20 years, so he is well
prepared for the job the President has nominated him for.
David is no stranger to the members and staff of this committee. He
served Senator Domenici and Nickles as subcommittee staff. He has
worked closely with Senator Craig and Senator Hagel on Climate Change
legislation. He has traveled with Senator Bingaman, Akaka, Thomas, Kyl,
and Landrieu. One of David's virtues is his bipartisanship. He never
hesitates to cross the aisle in pursuit of a positive legislative
outcome. (Indeed, he didn't hesitate to cross the aisle in pursuit of a
spouse, Kira Finkler, one of the Committee Democrat Counsels.)
I welcome David, his family and friends, and recommend his
nomination to the members of this committee.
______
PREPARED STATEMENT OF HON. PETE V. DOMENICI, U.S. SENATOR
FROM NEW MEXICO
Mr. Chairman, I'm very pleased to welcome the four nominees for
positions within the Department of Energy. That Department includes a
very wide diversity of programs, which translates into a major
management challenge. I appreciate that these well qualified candidates
are ready and willing to accept these difficult assignments.
They are accepting these challenges at the same time that the
American people are looking to the Department to provide leadership out
of a serious energy shortage. The days of abundant energy supplies are
gone in many parts of our country, as evidenced by rolling blackouts in
California just this week, as well as earlier in the year. The
situation in California is fragile, and there can be no pretense that
any credible solutions are quick or easy.
It took years without an energy policy to reach the current
conditions, and unfortunately getting more electricity onto the grid
isn't quite as simple as flipping on a power switch someplace. We're in
a situation where remedies will come slowly. Disruptions will continue
for years before our supplies are back to healthy levels.
These nominees will be called upon to join with the Secretary of
Energy and other agencies of the federal government to craft
solutions--solutions that will provide our nation with the best
possible long-term energy supplies.
Each of these nominees is well qualified to undertake their
assignments. Francis Blake brings important experience from General
Electric, in addition to prior government service. Bob Card has led the
company providing the most effective, and certainly one of the most
challenging, environmental cleanup efforts in the nation. Bruce Carnes
brings solid experience from the Defense Department and from other
areas of government service. I've worked with Dave Garman is his roles
with the Energy and Natural Resources Committee and with the staff of
Senator Murkowski; there is no question that Dave brings a superb mix
of experience and talent to his new assignment with Energy Efficiency
and Renewable Energy.
Each of these nominees has my support and I look forward to the
opportunity to vote for their confirmation on the floor of the Senate
in the very near future. And in my capacity as Chairman of the
Appropriations Subcommittee for Energy and Water Development, I'll be
working closely with them to develop important new policies to lead our
nation toward solid energy security.
______
PREPARED STATEMENT OF HON. GEORGE ALLEN, U.S. SENATOR FROM VIRGINIA
Mr. Chairman and members of the committee, it is my privilege to
introduce an outstanding Virginian from Springfield/Fairfax County,
Bruce Carnes, for your consideration as Chief Financial Officer (CFO)
for the Department of Energy.
Dr. Carnes has a long and distinguished 25-year record of public
service, one that I feel makes him an exceptional choice to manage the
financial course for the U.S. Department of Energy.
Dr. Carnes received his bachelor's degree from the University of
Colorado and both of his graduate degrees from Indiana University. He
overcame this ``Virginia-deficient'' educational experience teaching
English literature at James Madison University and undoubtedly through
marriage to his wife, Lynore (pronounce Lynn-OR), who received her law
degree from George Mason University.
I am pleased to say that both of their daughters have chosen to
follow suit, attending high school and college in the Commonwealth of
Virginia (UVA and JMU).
His experience in financial management is certainly impressive. Dr.
Carnes was the Chief Financial Officer for the Defense Department and
has also held the chief finance and budget positions of the Office of
National Drug Control Policy, the Department of Education, and the
National Endowment for the Humanities. He currently serves as the
Deputy Director, or Chief Operating Officer, of the world's largest
finance and accounting organization in the world: the Defense Finance
and Accounting Service.
This last Department of Defense position I mentioned requires Dr.
Carnes to assist in the day-to-day accounting and finance activities of
the entire Department of Defense, an area that employs more than 20,000
civilian and military personnel at 25 locations throughout the United
States and Pacific region. The financial resources he oversees are in
well excess of $1 trillion.
The changing face of the Defense Department as we exited the Cold
War in the early 1990s provided a significant department-wide challenge
that we will now issue to our friends at the Department of Energy. Dr.
Carnes is entering the Department at a crucial time and his assistance
in advancing the Administration's Energy Policy will be welcomed by all
Americans.
I am confident that Dr. Carnes' background and experience,
especially in financial management, will enable him to continue his
outstanding contributions to the federal government in his new role as
the Energy Department's Chief Financial Officer.
Mr. Chairman, members of the committee, it is my sincere pleasure
to introduce this exceptional nominee to you this morning, and
wholeheartedly recommend his confirmation.
STATEMENT OF HON. WAYNE ALLARD, U.S. SENATOR
FROM COLORADO
Senator Allard. Mr. Chairman, first of all, I want to thank
you and congratulate you on moving forward with all of these
nominees. And just to let you know that both Senator Allen and
myself have met Francis here. We think he's a good guy. So now
somebody has spoken.
I also want to note that Senator Bingaman for his being on
the committee and the other members I want to thank you for
having me here today to introduce Bob Card to--or Robert Card,
who I believe is a very deserving nominee to be the Under
Secretary of Energy.
Bob Card's credentials are not only extensive but
impressive. He has a PMD, which is a Program for Management
Development from Harvard Business School, a Master of Science
in Environmental Engineering from Stanford University, and
Biological Science and Civil Engineering from the University of
Washington. And was a DOE radiation worker, too.
For experience, he's worked for CH2M Hill for over 20
years, which has involved work at over 10 facilities, including
the Rocky Flats Environmental Technology site at Denver,
Colorado.
While at Rocky Flats, Bob and I have had an opportunity to
meet and work together for a number of years on issues
surrounding the Rocky Flats site. It's based on that experience
why I so strongly recommend him today.
Bob started at Rocky Flats as executive vice president of
Kaiser-Hill before taking the reins as chief executive officer
and president of Rocky Flats of Kaiser-Hill in April 1996.
I witness Bob turn the Rocky Flats cleanup from a project
which was scheduled to close by 2065, costing upwards to $37
billion down to closure in 2010 and costing over $7.5 billion,
to today's scheduled closure of 2006, costing around $7
billion. In order to achieve these savings, Bob has had to make
some very tough decisions and use practical business sense.
As many of you may know, the closure of Rocky Flats is a
very important issue to both me, my constituents, and Bob knows
the importance of keeping all of us informed. Regardless of the
news, he has always been honest and forthright with me and
other members of the Colorado delegation.
I believe Bob is the right person for this Under Secretary.
He will bring a tough-minded business sense to the department,
and I want to congratulate Secretary Abraham for his excellent
choice, and believe the country and the department is lucky
that Bob Card has answered this call to service.
Again, I thank the committee for giving me this opportunity
to speak on Bob's behalf. I hope that you will look favorably
on his nomination, and it will be moved in an expeditious
manner. Because I know Secretary Abraham would appreciate the
help at the department. Thank you, Mr. Chairman.
The Chairman. Thank you very much, Senator Allard.
Senator Campbell.
STATEMENT OF HON. BEN NIGHTHORSE CAMPBELL,
U.S. SENATOR FROM COLORADO
Senator Campbell. Thank you, Mr. Chairman. I think that was
the first call to vote, so let me be brief and say I'm very
proud and honored to be able to join Senator Allard in
introducing Bob Card from Colorado to serve as the Under
Secretary of Energy. I think he is overwhelmingly qualified and
certainly putting the right people in that department is
important.
During the past few years, as you know, the Department of
Energy has faced some serious lapses in security. Now we're
experiencing an energy crisis the likes of which this country
has not seen for decades. There has been a lack of
comprehensive energy policy by the previous administration
which could have alleviated many of the problems we're
currently facing.
The entire Department is in need of an overhaul and
reevaluation of existing policies, and I believe Bob Card will
complement this team in place. And he is certainly the right
person for the job. He has been a very, very strong voice for
promoting and enhancing our competitiveness and global
leadership, which are crucial to our nation's energy security.
He's an outstanding professional, and I believe he will do
a very, very fine job in supervising the cleanup of nuclear
weapon sites as well as the many other responsibilities in the
Department.
As Senator Allard has mentioned, for the past 6 years he is
head of the Kaiser-Hill, a partnership that contracted with DOE
to clean up Rocky Flats, which has been very troublesome, as
you know. And I think his experience will help accelerate and
improve work at other facilities across the Nation as well.
As Wayne mentioned, he's a licensed engineer, also has
graduate degrees from Stanford in civil engineering and from
Harvard Business School. And his demonstrated abilities
certainly should lead him to excel in this new position.
So I just wanted to add that I'm a very ardent supporter of
his nomination, Mr. Chairman. Thank you.
The Chairman. Thank you very much, Senator Campbell. We
have Senator Allen who will introduced Bruce Carnes for the
Assistant Secretary for Energy--excuse me. Bruce Carnes for
Chief Financial Officer, Department of Energy.
Senator Allen. Thank you, Mr. Chairman, Senator Murkowski,
Senator Bingaman, Senator Campbell. It's a pleasure for me to
introduce an outstanding resident of Virginia. But before I do,
I want to join in with Wayne Allard in saying that for Deputy
Secretary, Francis Blake, although he's from Connecticut, would
be an outstanding choice.
So you have the Northeast, the West, and the South
together. He seems like a good fellow and with obviously a good
sense of humor.
The Chairman. And he's a resident of Virginia?
Senator Allen. No, no, he lives in Connecticut.
The Chairman. It's too bad.
Senator Allen. It is too bad, but he's going to undoubtedly
move to Virginia once he gets this appointment because----
The Chairman. That's fair enough. You take commissions on
real estate sales?
Senator Allen. Trying to sell my own place.
The Chairman. Oh, there you go.
Senator Allen. I'm sure he'll show good judgment and move
to Virginia.
At any rate, Mr. Chairman, Bruce Carnes lives in Fairfax
County, and he's under consideration for Chief Financial
Officer for the Department of Energy, and he has a very
distinguished 25-year career in a variety of areas to the
Nation in public service. He's, I think, a very wise and
exceptional choice to manage the financial course for the U.S.
Department of Energy.
Dr. Carnes, to the interest of Senator Allard and Senator
Campbell, received his bachelor's degree from University of
Colorado and graduate degree from Indiana University.
Senator Allen. Picked up our vote.
Senator Allard. Picked up your votes, good. He overcame
this Virginia-deficient education experience, though, by
teaching English at James Madison University, where one of his
daughters graduated. The other graduated from the University of
Virginia. Both then went on to serve in the U.S. Army,
achieving the rank of captain.
His wife Lenore, who is with him here today, received her
law degree from George Mason University.
Most probative, Mr. Chairman, is the fact that he's worked
in the National Drug Control Policy Office, the Department of
Education, the National Endowment for Humanities. He currently
serves as the Deputy Director or Chief Operating Officer of the
world's largest finance and accounting organization in the
world, the Defense Finance & Accounting Service.
This last Department of Defense position I mentioned
required Dr. Carnes to lead and manage the day-to-day
accounting and finance activities of the entire Department of
Defense. This is an area that employs more than 20,000 civilian
and military personnel at 25 locations throughout the United
States and the Pacific region. The financial resources that he
oversees are well in excess of $1 trillion.
Now, the changing face of the Defense Department, as we
exited the Cold War in the early 1990's, provided a significant
department-wide challenge that will now issue to our friends in
the Department of Energy. Dr. Carnes is entering the department
at a crucial time, and his leadership and expert assistance in
advancing the administration's energy policy will be welcomed
by all Americans.
And I know the chairman of this committee has been
advocating an outstanding group of ideas, specifics of what we
need to do to become more energy independent, and the whole
country will appreciate that, and obviously Dr. Carnes in
managing the efficiency of that office will be important.
I'm confident that Dr. Carnes' background and experience,
especially in financial management, will enable him to continue
his outstanding contributions to the Nation in his new role as
the Energy Department's CFO.
Mr. Chairman and members of the committee, it's my sincere
pleasure to present this exceptional nominee, Dr. Bruce Carnes,
this morning to you and wholeheartedly recommend his approval.
The Chairman. Thank you very much. Thank you very much for
that introduction, Senator Allen, and Senator Allard. We're
going to recess briefly, then we'll introduce Mr. Blake and Mr.
Garman.
[Recess taken from 9:48 a.m. to 10:03 a.m.]
The Chairman. We'll call a recess to a conclusion, and we
have our panel of nominees before us. And I want to take the
opportunity along with Senator Bingaman very briefly to
introduce the two nominees that have not been introduced
previously. We had Senator Allard and Senator Allen here
previously.
But Mr. Blake, Francis S. Blake, a good name, Francis. It
reminds me of Frank and some of those other names that I've
heard from time to time. But Mr. Blake is nominated to be
Deputy Secretary for the Department of Energy, which obviously
is a timely topic these days. You can't hardly open anything or
walk down any halls around Washington without an inquiry on
energy.
Now, Mr. Blake is presently the senior vice president of
Corporate Business Development at General Electric, where he's
served since 1991 before joining GE. He was a partner at a law
firm of Swindler & Berlin in Washington and served as the
General Counsel at the Environmental Protection Agency from
1985 to 1988. He served as Deputy Counsel to Vice President
George H.W. Bush from 1981 to 1983. He's a resident of
Connecticut. He's a graduate of Harvard University and Columbia
University School of Law.
Senator Bingaman, do you have any comments relative to the
introduction of a nominee?
Senator Bingaman. I do not, Mr. Chairman. I strongly
support all four of these nominees. I do have a couple of
questions when we get to the question portion, but I think they
are all good nominations, and I look forward to getting them
confirmed.
The Chairman. Thank you very much, Senator Bingaman.
Our last nominee and the gentleman on the far right is no
stranger to me. I've enjoyed the association for some 20 years.
He's taught me a lot. He's an extraordinarily well-organized
individual and, as a consequence, he's helped me a little bit.
But I have not followed in his foot steps to the extent of his
organizational ability.
It certainly is a pleasure to have the opportunity here to
recognize someone that has had a personal relationship with
both Nancy and I in the sense of working daily with this
individual. And to see him advance, accept more responsibility,
and finally have it culminated in a nomination, a presidential
nominee I think is extremely noteworthy of David's ability and
commitment to serve.
In the nomination by the President to serve as the
Assistant Secretary of Energy for Energy Efficiency and
Renewable Energy, David accepts a significant responsibility.
He is a resident of Virginia. You might wonder why the
Virginia Senators are not here, but I took the broad authority
as chairman to usurp them in this regard and accept the
responsibility of introducing them myself.
As I indicated, David has been with me for over 20 years.
He came in January 1981. For over 20 years he served in a
variety of capacities, most recently as my Chief of Staff. He
was an Energy LA on my staff in the early 1980's when the
committee worked to decontrol natural gas prices.
He was my central staff member on the Senate Select
Committee on Intelligence when we were examining the
capabilities of intelligence assets and understanding issues
such as climate change, transboundary pollution in the former
Soviet Union. I had that position on the Energy Committee--
excuse me, for the Intelligence Committee for 8 years.
He also served on the professional staff of the committee
working on a variety of energy R&D and environmental issues.
David joins us with an academic background of a Bachelor of
Science and Public Policy from Duke University, and Master of
Science and Environmental Sciences from Johns Hopkins
University. He's been working on energy and environment issues
in the Senate for the better part of 20 years.
I think he's well prepared to serve the President and the
Nation in the job that he's been nominated for. He certainly is
no stranger to members of the staff of this committee.
He served with Senator Domenici and Senator Nickles on the
subcommittee staff. He's worked closely with Senator Craig and
Senator Hagel on climate change. He's traveled with Senator
Bingaman, Senator Akaka, Senator Thomas, Senator Kyle, and
Senator Landrieu.
And one of David's virtues is his bipartisanship. He never
hesitates to cross the aisle in pursuit of a positive
legislative outcome, or sometimes cross the aisle in pursuit of
a spouse. His wife, Kira, is with him today, and she's one of
the democratic counsels for this committee.
I welcome David and their daughter and the family and
friends and certainly recommend his nomination to members of
this committee.
Now, before we start, Mr. Blake, do you have anyone in the
audience you would like to introduce?
Mr. Blake. Oh, no, sir. My son is a lieutenant in the Army.
He's now in Colorado. My daughter is at school at Stanford. So
neither of them could be here.
The Chairman. All right. You're writing checks to Stanford
University at this time?
Mr. Blake. All the time.
The Chairman. All right, Mr. Card.
Mr. Card. Yes, Senator, I'd like to introduce my spouse,
Nancy, and my daughter, Alison, and my son, Christopher.
The Chairman. Please stand up, thank you, and be
recognized. The applause is for your family members, I might
add, that are going to have to put up with an awful lot here in
your new position.
Mr. Carnes.
Mr. Carnes. Thanks, Mr. Chairman. Yes, I would like to
introduce my wife, Lenore----
The Chairman. Lenore, good morning.
Mr. Carnes. And my sister-in-law, Barbara Brenner.
The Chairman. Barbara, how are you?
And Mr. Garman.
Mr. Garman. Yes, thank you, Mr. Chairman. With the
committee's indulgence, I have a large--I have a large
contingent.
The Chairman. Nobody is in Florida today.
Mr. Garman. My wife, Kira, and, of course, my daughter,
Bonnie. My parents, Jack and Jane Garman, from Norcross,
Georgia. My mother's sister, my aunt Jean Hoscloth from
Jamestown, North Carolina. And from Washington, D.C., John and
Maria Barons, who are Kira's great aunt and uncle.
The Chairman. Well, thank you very much, David, and my
congratulations to you. And I join with your family, your wife,
and your daughter in the pride of this moment.
And I think, Senator Bingaman, that we could go into the
opening statements now of the members. I would encourage you to
be brief and succinct and highlight what you feel is important
to the committee.
Please proceed and we'll start with Mr. Blake and end up
with Mr. Garman. Is that fair enough?
Mr. Blake. Mr. Chairman, members of the committee, my name
is Frank Blake. It is----
The Chairman. Well, we've got another--I must swear you all
in. I'm glad counsel is keeping me informed in advance.
If you will stand, gentlemen. The rules of the committee
which apply to all nominees require that they be sworn in, in
connection with their testimony.
So would you please raise your right hand, gentlemen. Do
you solemnly swear that the testimony you are about to give to
the Senate Committee on the Energy and Natural Resources shall
be the truth, the whole truth, and nothing but the truth?
Mr. Blake. I do.
Mr. Card. I do.
Mr. Carnes. I do.
Mr. Garman. I do.
The Chairman. Please be seated. Before you begin your
statement, I would ask you three questions addressed to each
nominee before the committee. 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?
Mr. Blake. I will.
Mr. Card. I will.
Mr. Carnes. I will.
Mr. Garman. I will
The Chairman. As you are aware, are there any personal
holdings, investments, or interests that could constitute a
conflict or create the appearance of such a conflict should you
be confirmed and assume the office to which you have been
nominated by the President?
Mr. Blake. Mr. Chairman, my investments, personal holdings,
and other interests have been reviewed both by myself and the
appropriate ethics counselors within the Federal Government. I
have taken the appropriate action to avoid any conflicts of
interest. There are no conflicts of interest or appearance
thereof, to my knowledge.
The Chairman. Mr. Card.
Mr. Card. Mr. Chairman, my personal interests, personal
holdings, and other interests have been reviewed both by myself
and the appropriate ethics counselors within the Federal
Government. I have taken appropriate action to avoid any
conflicts of interest. There are no conflicts of interest or
appearances thereof, to my knowledge.
The Chairman. Thank you.
Mr. Carnes.
Mr. Carnes. Mr. Chairman, my investments, personal
holdings, and other interests have been reviewed by myself and
the appropriate ethics counselors within the Federal
Government. I have taken appropriate action to avoid any
conflicts of interest. There are no conflicts of interest or
appearances thereof, to my knowledge.
The Chairman. Thank you.
Mr. Garman.
Mr. Garman. Mr. Chairman, my investments, personal
holdings, and other interests have been reviewed both by myself
and the appropriate ethics counselors within the Federal
Government. I have taken the appropriate action to avoid any
conflicts of interest. There are no conflicts of interest or
appearances thereof, to my knowledge.
The Chairman. Thank you. Are you involved or do you have
any assets held in blind trusts? And let's go down the line.
Mr. Blake?
Mr. Blake. No.
The Chairman. Mr. Card?
Mr. Card. No.
The Chairman. Mr. Carnes?
Mr. Carnes. No.
The Chairman. Mr. Garman?
Mr. Garman. No.
The Chairman. Do you--I think we've got it; is that right?
All right. Thank you, Counselor. Let's proceed again.
Mr. Blake, we won't interrupt you this time.
TESTIMONY OF FRANCIS S. BLAKE, NOMINEE TO BE DEPUTY SECRETARY
OF THE DEPARTMENT OF ENERGY
Mr. Blake. Thank you, Mr. Chairman. Mr. Chairman and
members of the committee, my name is Frank Blake. It is a great
privilege to appear before you today as President Bush's
nominee to be Deputy Secretary of Energy. I'd like to commit my
statement for the record and just make some----
The Chairman. Without objection, so noted.
Mr. Blake. And just make some brief comments in summary. I
spent almost my entire professional career working on issues
associated with power generation, transmission, and
distribution. For the last 10 years I've worked at General
Electric principally at GE's Power Systems Division. Most
recently at corporate headquarters as senior vice president for
Business Development.
Prior to that, I had the opportunity to serve in the Reagan
administration, first as Deputy Counsel to then Vice President
Bush, and then as General Counsel U.S. Environmental Protection
Agency from 1985 to 1988.
If confirmed, I look forward to the opportunity of working
for Secretary Abraham and working with the members of this
committee. I believe that my experience in both the public and
private sectors will be of use in addressing the problems and
issues that face the Department of Energy.
Looking from the outside, one of the most interesting
things about the Department is how varied its mandates are.
From protecting and ensuring the country's nuclear arsenol, to
conducting probably the world's largest environmental cleanup
program, to overseeing some of the Nation's premier research
and development facilities. And finally, of course, to working
with others in developing the Nation's energy policy.
I think as varied as these tasks are, these are unique
times that present terrific opportunities to make substantial
improvements in each and every one of these areas. If
confirmed, I look forward to working with all of you in that
task.
[The prepared statement of Mr. Blake follows:]
PREPARED STATEMENT OF FRANCIS S. BLAKE, NOMINEE TO BE DEPUTY SECRETARY
OF THE DEPARTMENT OF ENERGY
Mr. Chairman and members of the committee, it is privilege to
appear before you today as President Bush's nominee for Deputy
Secretary of Energy. I look forward, if confirmed, to the opportunity
of working with Secretary Abraham and the members of this Committee.
I have been fortunate in my career to have worked for extraordinary
leaders in both the public and private sectors, including former
President George Bush and Jack Welch, CEO of General Electric. There
are enormous differences between the public and private sectors, but I
believe there is a great deal to gain from sharing the perspectives
learned in each. In particular, I believe that the public sector,
legitimately wary of the latest corporate management philosophies, may
still benefit from a private sector culture that is constantly seeking
to improve itself. I look forward to working on that objective with
Secretary Abraham and the management team that the President and he,
with the Senate's concurrence, are putting in place.
The issues and challenges faced by the Department of Energy are
many and varied. First and foremost, the Department must support our
national security, ensuring that our nation's nuclear arsenal is safe,
secure and reliable and in helping on issues related to nuclear
nonproliferation. Secretary Abraham has pledged that this stands as his
highest priority, and my role will be to assist him and General Gordon
in accomplishing that.
The Department also has a critical role to play in the formulation
and implementation of our country's energy policy. I have spent most of
my professional life working on issues associated with energy policy
and, in particular, power generation, transmission and distribution.
The challenges the country now faces in those areas are apparent, as
this Committee well knows. Fundamental problems of supply, demand and
delivery have to be addressed. This committee will play a critical part
in developing the short and long term solutions to these problems, and
I look forward to working with you in that effort.
The third area of focus for the Department is science and
technology. I have had the opportunity in the private sector to see
first hand the benefits of the Department's support for research and
development in critical areas of advanced technology. These programs at
the Department and the National Laboratories provide an important
benefit to our country's competitiveness. They help to encourage and
harness some of the most creative work within industry, government and
academia. The task is to make these strong programs even stronger.
Finally, the Department faces an enormous task in implementing the
world's largest clean-up program. I have had experience in clean-up
programs in both the private sector, through managing the
environmental, health and safety programs of GE's Power Systems
division, and in the public sector, through my role as General Counsel
for EPA, from 1985 to 1988. This is a contentious area, where the
possibilities of misunderstanding, confusion and programmatic drift are
enormous. But the President, Secretary Abraham and the operating team
at the Department are committed to reaching sound decisions, based on
science, that will protect the public health and welfare.
Thank you again for the opportunity to appear before you, and if
there are any questions, I would be pleased to try to answer them.
The Chairman. Thank you, Mr. Blake.
Mr. Card.
TESTIMONY OF ROBERT G. CARD, NOMINEE TO BE UNDER SECRETARY OF
THE DEPARTMENT OF ENERGY
Mr. Card. Thank you, Mr. Chairman, members of the
committee. I'm honored to appear before you today as President
Bush's nominee for Under Secretary of Energy.
The Chairman. If you would be kind enough to pull that
microphone up a little bit. Thank you.
Mr. Card. I'm going to summarize my statement also and ask
that it be submitted for the record.
The Chairman. Without objection.
Mr. Card. I am pleased to have this opportunity to talk
with you and respond to any questions you may have today.
Current events have placed a great responsibility on DOE, a
responsibility that I take seriously. I look forward to working
with the committee and the Secretary to help resolve the
pressing cleanup, science and energy issues which confront our
nation.
If confirmed, my primary focus at DOE will be on day-to-day
operations to improve the Department's efficiency and
effectiveness. What I've heard from many of you and others is
you want a faster and less costly cleanup, but you want to
protect and enhance our science assets and capability. And that
you want effective operations of our energy functions to help
ensure reliable, economical, environmentally sustainable energy
supplies.
Further, you want this accomplished----
The Chairman. If you would pull that up because we're still
having a difficult time.
Mr. Card. How's that?
The Chairman. That's great.
Mr. Card. Further, you want this accomplished safely and
with the security posture that protects our national interests.
Moving towards this goal is obviously a daunting challenge, and
I look forward to your experience help and guidance in this
undertaking. Thank you.
[The prepared statement of Mr. Card follows:]
PREPARED STATEMENT OF ROBERT G. CARD, NOMINEE TO BE UNDER SECRETARY OF
THE DEPARTMENT OF ENERGY
Mr. Chairman and members of the committee, I am honored to appear
before you today as President Bush's nominee for Under Secretary of
Energy. I am pleased to have this opportunity to talk with you and
respond to any questions that you may have.
Please allow me to introduce my wife Nancy and my children,
Christopher and Allison, who have joined me today.
Current events have placed great responsibility on the DOE--a
responsibility that I take seriously. I look forward to working with
the committee and the Secretary to help resolve the pressing cleanup,
science, and energy issues which confront our nation.
If confirmed, my primary focus at the DOE will be on day-to-day
operations to improve the Department's efficiency and effectiveness.
What I have heard from many of you, and others, is that you want a
faster and less costly cleanup; that you want to protect and enhance
our science assets and capability; and that you want effective
operations of our energy functions to help ensure reliable, economical,
and environmentally sustainable energy supplies. Further, you want this
accomplished safely and with a security posture that protects our
national interests. Moving toward this goal is obviously a daunting
challenge, and I look forward to your experience, help, and guidance in
this undertaking.
Many studies have cited the high cost of DOE's cleanup program. In
spite of recent accomplishments, the Department needs to do a better
job in this area, and answer the mail on why more isn't being delivered
for our 6 billion-dollar annual investment. As a nuclear operations
executive, I am sensitive to both the importance of this issue and the
immense challenge of accomplishing this safely at DOE's aging nuclear
facilities. In using my site management experience to improve this
program, I realize that each site within the DOE has unique
circumstances that defy a cookie cutter approach, and their challenges
are complex. I have been fortunate in that I have worked with the
leadership of most of DOE's major sites to better understand their
issues. In moving towards accelerating cleanup, I endorse the cleanup
program evaluation called for by the Secretary, and I look forward to
working with you to craft a path forward to meet the Department's
cleanup obligations.
DOE's science program has made significant contributions to our
national well being and competitiveness. It has played host to numerous
Nobel laureates and important discoveries and developments in the
physical sciences. These have contributed to major gains in public
health, personal and national security, electronics, and energy, to
name a few. We need to work on ways to cut red tape to make the science
program more competitive and to fund projects to improve our aging
infrastructure. We also need to work toward ensuring that new science
initiatives important to our national interest are identified and
appropriately funded.
This committee and DOE play an important role in developing
strategies to bring economical, reliable, and environmentally
sustainable energy to American consumers. To aid the Secretary in
implementing these strategies, I bring the Department first hand
experience with both oil production and nuclear issues, in addition to
having lead my firm's energy business. This business included projects
in renewable and energy efficiency technologies. I support the
Administration's view that we need to encourage a broad mix of energy
sources in our portfolio, and we need to continue working on
technologies to ensure that all of our available resources for energy
supply and energy efficiency are able to be applied to their fullest
potential.
In conclusion, I look forward to working with you to make DOE more
productive and cost effective, while simultaneously maintaining our
vigilance on safety, security, and environmental compliance. I also
want to express my appreciation for the very rapid scheduling of this
hearing at a busy time for the committee.
Thank you.
The Chairman. Thank you, Mr. Card.
Mr. Carnes.
TESTIMONY OF BRUCE M. CARNES, NOMINEE TO BE CHIEF FINANCIAL
OFFICER OF THE DEPARTMENT OF ENERGY
Mr. Carnes. Thank you, Mr. Chairman, members of the
committee. Thank you for the opportunity to appear before you
here today. I'm honored to be the President's nominee to be
Chief Financial Officer at the Department of Energy. Mr.
Chairman, I have submitted a formal written statement that I
ask be included in the record.
The Chairman. Without objection.
Mr. Carnes. If I could, I would like to briefly summarize
my statement. Mr. Chairman, public trust, public service is a
trust in our family. My grandfather and uncle were elected
public officials, my father was a career Army officer, my wife,
Lenore, and I had two children, daughters, both of whom rose to
the rank of captain in the U.S. Army.
My older daughter served in Bosnia, was a company commander
in Albania during the Kosovo conflict, and was involved in the
security operations related to the U.S.S. Cole aftermath.
I've served in the Federal Government for nearly 25 years.
I've been the Chief Financial Officer of the Defense Finance &
Accounting Service, an agency of about 19,000 civilian and
military personnel for the past 2 years. Been their chief
operating officer which performs all the financial operations
of the Defense Department. I've also been the chief budget and
financial official at various other agencies and departments.
There are few, if any, issues of greater importance in the
Nation than those in Energy. If I am confirmed, Mr. Chairman,
one of my top priorities will be to provide to you members of
this committee, the Congress, and the public the financial
information needed to make sound and informed decisions and to
ensure that the taxpayer's dollars are being spent wisely and
as intended in addressing those issues.
To that end, if I am confirmed, I will do everything I can
to ensure that the Department of Energy continues to receive a
clean audit opinion. The Congress and the American people
expect good financial stewardship, and they deserve no less.
At the same time, if I am confirmed, I would hope to do
more than provide financial data. Data needs to become
information to help the secretary and his senior officers
manage and make informed decisions, and it needs to be timely.
Managers need the financial equivalent of a GPS system. And if
confirmed, I would place a high priority on providing that
information.
Finally, I would note that the staff of the CFO office and
congressional staff have had an excellent working relationship
over the years. If I am confirmed, I intend to ensure that that
relationship is nurtured and that we are responsive, timely,
and accurate in providing to the Congress the information that
it requests.
Mr. Chairman, this concludes my statement. I would be happy
to respond.
[The prepared statement of Mr. Carnes follows:]
PREPARED STATEMENT OF BRUCE M. CARNES, NOMINEE TO BE CHIEF FINANCIAL
OFFICER OF THE DEPARTMENT OF ENERGY
Mr. Chairman and members of the committee, I am honored to appear
before you today as President Bush's nominee to be the Chief Financial
Officer of the Department of Energy. I am also extremely grateful for
the confidence that Secretary Abraham has placed in me.
Mr. Chairman, I would like to introduce my wife, Lynore Carnes. In
nearly 33 years of marriage she has been my most ardent supporter and
valued friend and counselor. Like me, Lynore is a Federal employee.
Indeed, our family has a rich tradition of public service: my
grandfather and uncle were elected public officials, my father was a
career Army officer, both of our daughters were Army officers, and they
married men who were also Army officers. Public service is a trust, a
calling, that I take with the utmost seriousness.
Mr. Chairman, although I began my professional life as an academic,
I bring to this job nearly 25 years of experience in the Federal
government, almost all of it in the financial arena. I have been the
Chief Financial Officer in the Defense Finance and Accounting Service
and have been the principal budget and planning official in three
others agencies: the National Endowment for the Humanities, the U.S.
Department of Education, and the Office of National Drug Control
Policy. Most recently I have been the Deputy Director, or Chief
Operating Officer, of the Defense Finance and Accounting Service,
responsible for all the day-to-day operations of an agency of 19,000
civilian and military personnel performing all the financial operations
of the Defense Department world-wide. I hope, and believe, that this
diverse experience and wide range of financial and public policy issues
will provide a solid basis on which to meet the CFO's responsibilities
and duties at the Department of Energy.
The energy policy challenges that the Nation faces rise to the
highest level of importance. Few issues command such intense public
interest and attention. Each of the Department's major program areas--
national defense, energy, science, and environmental cleanup--matters
profoundly to the American people and to the Congress. If I am
confirmed, Mr. Chairman, one of my top priorities will be to provide to
you, the Members of this Committee, the Congress, and the public the
financial information necessary to make sound, timely public policy
judgments and decisions on these paramount issues, and to ensure that
the taxpayers' dollars are being spent wisely and as intended.
The Chief Financial Officers Act of 1990 lays out eight statutory
responsibilities for the CFO. Prominent among them is preparing an
annual report that includes the Department's financial statements and
audit. Getting a clean audit opinion in Federal agencies has proved to
be a greater challenge than people perhaps originally thought, but I am
pleased to say that my previous agency, the Defense Finance and
Accounting Service, received a clean opinion for its latest financial
statements, making it the first operational entity in the Defense
Department to do so. More important, the Department of Energy has
received a clean opinion for the last two years, and in fact received a
grade of ``A'' from Congressman Horn. If I am confirmed, a top priority
of mine will be to ensure that this splendid achievement continues. The
Congress and the American people expect good financial stewardship of
the taxpayers' dollars. They deserve no less.
At the same time, if I am confirmed I would work to provide the
Department's managers the information they need to manage and make
informed decisions. Financial data, no matter how accurate and perfect,
must be turned into meaningful information that supports the work of
senior managers. Managers need the financial equivalent of a global
positioning system: they need to know what things cost, and they need
to know it quickly. They need financial intelligence, not just data,
and I would place increased focus on this analytic capability.
Another principal responsibility of the Chief Financial Officer
laid out in statute is to have an integrated agency accounting and
financial management system. Coming from the Defense Department, Mr.
Chairman, I can candidly assure you that I know how important this is.
I also know how challenging it is. At DoD significant strides have
occurred--two-thirds of the more than 300 legacy accounting systems
have been eliminated and replaced by migratory systems that are CFO-
compliant. At Energy a major effort has begun to procure and develop a
migratory financial management system to replace outdated,
incompatible, non-compliant legacy systems. If I am confirmed, I intend
to ensure that this process continues aggressively. Such system
improvements, done properly, produce not only accurate and timely
information, they produce savings in infrastructure costs.
The CFO Act links an integrated accounting and financial management
system to internal controls. Under my tenure as Chief Operating Officer
at the Defense Finance and Accounting Service, I created and staffed an
office of Internal Review that reported directly to me. This office
enjoyed a fruitful and productive working relationship with the Defense
Department's Inspector General. If I am confirmed, Mr. Chairman, I
would intend to place great emphasis on sound internal controls at the
Department of Energy.
This will not only help ensure that the Department continues to
receive a clean audit opinion, it is absolutely essential to providing
to the Secretary the financial management information he needs in order
to make sound decisions. Indeed, I would go further, and suggest that
each major program area needs useful, meaningful financial information,
not just data. Program managers need, and deserve, what I would call
the financial equivalent of a global positioning system: they want, and
rightly so, real-time financial intelligence. Done right, such
information is by definition CFO-compliant. If I am confirmed as Chief
Financial Officer, I would intend to make this one of my major
initiatives.
Another major statutory responsibility conferred on the Chief
Financial Officer is to oversee all financial management activities of
the programs and operations of the agency. Although there is only one
statutory Chief Financial Officer for the Department of Energy, the
major program areas and field offices have budget and financial
management staffs. Such arrangements present no problem; indeed, I
would suggest that if those positions did not exist we would have to
create them. A similar situation exists between the Comptroller of the
Department of Defense and the comptrollers of the three Military
Departments: there is one comptroller for Defense, but all work
together collegially. That is how I intend to proceed if I am
confirmed. This approach, I believe, is analogous to the National
Nuclear Security Administration, which Congress established as a semi-
autonomous entity within the Department, with the Administrator
reporting to the Secretary of Energy. As such, NNSA is subject to
overall guidance and direction from the Secretary, including policy on
financial matters, within which it is my belief they would have broad
discretion unless otherwise determined by the Congress. At the same
time, any financial guidance that the Department would promulgate
should give great consideration to the advice and counsel of NNSA.
Finally, Mr. Chairman, I would note that the Chief Financial
Officer's staff and the staff of this Committee and other Committees
have enjoyed a good working relationship over the years. If I am
confirmed, I intend to continue that relationship and to ensure that
the Congress gets the information it wants when it wants it, and that
it is accurate and reliable.
Mr. Chairman, this concludes my statement. Thank you for your
consideration of my nomination and the opportunity to appear before you
today. I would be pleased to respond to any question you may have.
The Chairman. Thank you, Mr. Carnes.
Mr. Garman.
TESTIMONY OF DAVID GARMAN, NOMINEE TO BE THE ASSISTANT
SECRETARY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY FOR THE
DEPARTMENT OF ENERGY
Mr. Garman. Mr. Chairman and members of this committee, I
am honored to appear before the committee as the President's
nominee to serve as the Assistant Secretary of Energy for
Energy Efficiency and Renewable Energy. Mr. Chairman, this past
December when I came into your office and confided to you that
there was only one job in the new administration that could
entice me away from the Senate and from your service and that's
the job that President has since nominated me to fill. I share
this with the committee to underscore my ardent desire to serve
in this capacity and my commitment to energy efficiency and the
use of renewable energy resources in the Nation's energy mix.
As the committee knows well our Nation faces serious energy
challenges. I believe we must promote energy efficiency and the
use of renewable energy resources as part of a balanced
approach to meet those challenges and we have tremendous
opportunities to employ new technology in that effort. That's
the view I expressed to the Secretary of Energy and officials
at the White House when I met with them to discuss my potential
nomination and should I be confirmed by the Senate that is the
view I will take into this job. Mr. Chairman, I ask that the
balance of my statement be entered into the record.
[The prepared statement of Mr. Garman follows:]
PREPARED STATEMENT OF DAVID GARMAN, NOMINEE TO BE ASSISTANT SECRETARY
OF ENERGY FOR ENERGY EFFICIENCY AND RENEWABLE ENERGY FOR THE DEPARTMENT
OF ENERGY
Mr. Chairman and members of the committee, I am honored to appear
before this Committee as the Presidents nominee to serve as Assistant
Secretary of Energy for Energy Efficiency and Renewable Energy.
This past December, I came into your office, Mr. Chairman, and
confided to you that there was only one job in the new Administration
that could entice me away from the Senate and from your service . . .
the job the President has since nominated me to fill. I share this with
the committee to underscore my ardent desire to serve in this capacity
and my commitment to energy efficiency and the greater use of renewable
energy sources in the nations energy mix.
As this committee knows so well, our nation faces serious energy
challenges. I believe we must promote efficiency and the use of
renewable energy resources as part of a balanced approach to meet those
challenges, and we have tremendous opportunities to employ new
technology in the effort. That is the view that I expressed to the
Secretary of Energy and officials at the White House when I met with
them to discuss my potential nomination. Should I be confirmed by the
Senate, that is the view that I will take into the job.
The Office of Energy Efficiency and Renewable Energy (EERE) employs
a federal work force of more than 570 individuals in pursuit of its
goals to promote advanced clean energy practices and technologies. It
implements 31 programs receiving over $1 billion in federal funding
through a network of DOE, national laboratory, state and local,
academic and private sector providers.
If confirmed by the Senate, I will promote scientifically rigorous
research and development programs designed to continue our progress in
bringing down the cost of renewable energy technologies to make them
more competitive in the marketplace.
If confirmed by the Senate, I will work to expand the efforts
already launched by the President and the Secretary to have the Federal
government lead by example in the area of energy efficiency.
If confirmed by the Senate, I will work to highlight the promise of
technology, not only in addressing our energy needs, but in dealing
with the risks posed by increasing concentrations of greenhouse gases
in the atmosphere.
If confirmed by the Senate, I will continue the efforts already
underway to improve project and overall management in EERE to get the
best value for the taxpayer resources entrusted to our stewardship.
I appreciate the efforts of the Chairman and the Ranking Member to
bring my nomination before the committee so quickly, and I am pleased
to answer any questions the committee may have, either now or in the
future.
Thank you.
The Chairman. Without objection. Thank you very much, Mr.
Garman. I do appreciate the brevity of the opening statements.
And relative to questions, one that comes to mind, Mr. Carnes,
is the ranking--and ranking is in the eyes kind of the
beholder--but, in any event, George Washington University has
ranked the Department of Energy performance in 1999 as 14 out
of 24 agencies when it comes to transparency and
accountability.
Now, you're going to go in as Chief Financial Officer with
the objective obviously of changing this, and I would
appreciate your views on some of the critical comments that
this university report made. What corrective action is
achievable within reasonable limits?
Mr. Carnes. Yes, sir, thank you, Mr. Chairman. I am
generally familiar with that report, and the ranking of the
Department of Energy on that scale.
And I would say that certainly we can do better. I have
reviewed the annual reports and believe that there is room for
improvement there. And if I am confirmed, I would intend to
inaugurate a more formal and rigorous program analysis and
evaluation initiative, similar to that in the CFO organization
in the Defense Department. Which rigorously examines programs
to evaluate their success in terms of their outcomes.
This is, and the decisions that are made on budget then are
driven by outcome decisions that there is a linkage between
input, that is cost and the output. At the same time, I would
work with the newly created office in the CFO organization, the
Office of Engineering & Contract Management to make sure that
is fully integrated into the budget development process.
The Chairman. Thank you, Mr. Carnes.
Mr. Card, Price-Anderson which you're familiar with
relative to the necessity of reauthorizing that act, and given
your experience at Rocky Flats, could you predict the
consequences to the Department's programs for cleaning up
nuclear sites if we fail to reauthorize Price-Anderson?
Mr. Card. Well, I won't offer to predict the consequences
for everybody, but I can say in my previous job that it would
be a serious issue that we'd have to take up with the
Department to figure out how to deal without Price-Anderson
protection.
Let me add, and I've testified previously, that Price-
Anderson I think provides a significant safety benefit for the
Department as well through the enforcement process.
The Chairman. Well, we have had some discussions informally
relative to whether that should be part of the comprehensive
energy bill that comes out of the process here or whether we
should try to move it independently. Do you have any views?
Mr. Card. I don't know on whether those should be----
The Chairman. As long as it moves.
Mr. Card. Yes.
The Chairman. Yes, I understand.
Mr. Blake, this is a question that has been asked of me,
but I'm going to ask it of you so I may have a better answer
when it's again asked of me. As you're aware, the task force is
coming out with a report sometime next week, Wednesday or
Thursday, and I would be interested in knowing how you propose
integrating the recommendations of the Vice President's energy
task force into the energy policy that is the responsibility of
the Department of Energy basically in carrying it out and
furthering it and instituting it.
Mr. Blake. I believe the task force, which I haven't
obviously been personally involved in----
The Chairman. Nor have I.
Mr. Blake. I believe that the task force recommendations
will include areas with specific responsibilities for the
different departments within the Federal Government. And so
we'll outline here are the follow-up items that would belong to
the Department of Energy. Here are the follow-up items that
would belong to the Department of the Interior. That's my
understanding.
The Chairman. Well, it's certainly going to take a lot of
your time and attention certainly because the expectations are
very high that in this document we're going to have an outline
of an energy policy that's identifiable, whether we agree with
it all or not is something else again as opposed to what we
have now, which is pretty hard to identify in any specifics.
It's fairly non-conclusive.
Which leads me to a question for Mr. Garman, and he'll
yield to Senator Bingaman, but it's relative to the emphasis
that we're currently seeing in many of the media and many in
the environmental community that this crisis can be eliminated
by a conservation. And your area of responsibility would be in
renewables, alternatives, and so forth.
And we've looked at CAFE standards at some length relative
to generalized statements that you could save as much by
changing CAFE standards as half as much oil as we import, but
then somebody said there's 200 million vehicles on the road or
thereabouts, 130 million of them are cars, most of the cars
aren't paid for. You're not going to move those cars off the
highway very rapidly.
And if you mandate, people will keep some of their old
cars, and it takes a long time, relatively long time, as much
as 7 to 8 to 9 to 10 years to bring about a significant number
of replacement automobiles.
And I guess you can go out and buy an automobile now that
gets 50 or 60 miles to the gallon. Some people do and some
people don't. But I'm concerned with the assumptions that are
being made on the oversimplification of how we can address this
crisis by simply conservation. And I've been of the opinion we
need a balance. But still there are many who simply focus we
can do it by conservation. I'd appreciate any observations
you'd care to make.
Mr. Garman. Mr. Chairman, you've touched on a great many
subjects, and I'll try to be brief in response. California
represents to me an excellent analog that we can look at. As a
State, California has done a superb job at saving energy. I
think there are only three States that do better than they do
on an equivalent basis. And yet California is suffering from
energy shortages and rolling blackouts.
That is instructive, I believe, to us that energy
efficiency and conservation, while very, very important tools,
cannot by themselves get us to where we need to be in terms of
bringing the Nation the energy it needs to continue its
economic growth.
The Chairman. Senator Bingaman.
Mr. Bingaman. Well, thank you very much. As I said earlier,
Mr. Chairman, I do support all four of these nominees. I think
they're very well qualified and look forward to working with
them when they assume their new jobs.
Let me ask Mr. Card a couple of questions that occur here.
The cleanup project of the nuclear weapons complex is a major
part of what the Department is engaged in. This is an area, of
course, you had substantial involvement with at Rocky Flats.
And your former company, Kaiser-Hill, had some safety lapses at
Rocky Flat that led to the Department fining and reprimanding
the company.
Four months ago, the Department sent a letter expressing
its serious concern about the company's safety performance and
inadequate management of the Rocky Flat cleanup. Could you give
the committee your views about those incidents and what the
problem was that caused that letter from the Department?
Mr. Card. Sure, thank you, Senator. First let me say that
safety and security are very serious issues at DOE's aging
nuclear sites, and it will be my top priority in everything I
do at the Department.
I also want to point out while I'm never satisfied with our
safety performance, that we have worked since I took charge
there over 50 million hours without a single significant injury
or exposure. I would place the context of the concerns you
described in the dramatic acceleration of the cleanup we're
doing, which calls for a higher safety standard than would
normally be the case.
In calendar year 2000 we had our best safety year ever in
statistics. But clearly, as was pointed out in that letter and
in the GEO report, we haven't achieved the level of safety
required to meet our 2006 cleanup obligations. We've prepared a
safety improvement plan as a result of that that is being
implemented now, and it's my understanding that DOE is
satisfied with that plan.
Mr. Bingaman. Thank you very much. Let me ask another
question. Two years ago you took a strong stand, I gather, in
testimony before the House Commerce Committee against requiring
the Department of Energy to issue additional worker safety
rules. Could you explain your thinking on this and what your
view would be in this new position as Under Secretary of Energy
responsible enforcing these rules?
Mr. Card. Sure. First let me provide my view at the time in
that the Price-Anderson structure in DOE is established to
mirror the NRC. And the quality assurance rule is the basic
enforcement tool for the NRC. And I think that if you talk to
the enforcement experts, they will say the quality assurance
rule, which was in effect, can be used to enforce against
virtually everything.
I saw the new rules as simply providing additional
bureaucracy without any additional worker protection. I think
that will prove to be true. I don't have a position on that and
my perspective new rule.
However, I would take a hard look at the relative benefit
and whether, in fact, I've missed something, and there is any
additional enforcement capability actually provided by the new
rule versus the high cost of implementing those.
Let me just give you an example. It generally costs even
for a simple rule about a million dollars per site. So, for
example, in new Mexico, Sandy and Los Alamos each will be
consuming over a million dollars per rule instead of doing
research. I would hope we would be able to look at that and
make sure we're getting our bang for our buck.
Mr. Bingaman. Mr. Chairman, let me say again I support all
the nominees. I'm sorry to see Mr. Garman leaving your own
office, but I'm sure he's leaving it in good hands, and we're
at least keeping Kira here. So I have no major complaint about
that. So thank you very much.
The Chairman. Thank you, Senator Bingaman.
Senator Craig.
Senator Craig. Mr. Chairman, thank you. Gentlemen,
congratulations to all of you. We're looking forward to having
you on board sooner rather than later. I know the folks down at
DOE need your help now and our country does also. So we will
expedite this, I trust, and the Senate will respond in a timely
fashion.
Let me ask a generic question of you all because this is
something we're all concerned about. Each of our labs has a
cleanup mission in nearly all situations and, as has been
stated, it is costly. And probably more costly than it should
be.
In 1995, the Department of Energy signed a legally
enforceable agreement with the State of Idaho in relation to
cleanup which requires that certain milestones be achieved by
certain States in the cleanup of contamination at the Idaho
National Engineering & Environmental Lab.
I'm doing all I can to see that adequate funding be
provided for DOE to meet its containment or its commitments to
the people of Idaho. And this is a conversation that I will
continue with Secretary Abraham. We have visited at length
about it. He will be here to discuss the DOE budget, I believe,
tomorrow.
The Chairman. Tomorrow, that's correct.
Senator Craig. Here is my question to you because the
budget that came forward was wholly inadequate. Its confirmed
to your respective position was in the Department of Energy do
I have your assurance that you will work to honor the legal
commitments for cleanup, such as the Idaho Settlement
Agreement, and do you agree that such legal commitments are
binding on DOE and should be used when planning the budget for
the cleanup program? That's a question for all of you to
respond to.
Mr. Blake. Yes, Senator, I think the generic response and
I, for myself, have not had the opportunity to----
Senator Craig. Of course not.
Mr. Blake [continuing]. To review the details of the
situation in Idaho or elsewhere. Is that the Department takes
those obligations extremely seriously and will, of course, work
with you to make sure that we make--take all appropriate steps.
Mr. Card. I'm committed to meeting the Department's
regulatory obligations and, further, with regard to your site,
which I know something about, I'm hoping that I'm able to.
Rocky Flats, as I left it, was shipping one transuranic
shipment per day.
Senator Craig. To Idaho?
Mr. Blake. Well, no, to ship to ship.
Senator Craig. And some of what we have in Idaho is Rocky
Flat products.
Mr. Card. I'm hoping that to make sure that the technology
developed there is applied at Idaho to expedite their
transuranic waste shipments as well.
Senator Craig. Thank you. Senator Carnes.
Mr. Carnes. Senator, I would associate myself with the
comments of my colleagues, and though I had not been privy to
the development of the budget for fiscal year 2002, I'm
generally aware of this issue and I can assure you that it is
my intention to ensure that we meet our legal commitments and
obligations.
Senator Craig. David.
Mr. Garman. Senator Craig, I am fortunate in the fact that
the EERE office does not have a lab with a nuclear cleanup
problem. We have the national renewable energy lab in Golden,
Colorado, but I have not been briefed of any problems.
Senator Craig. Well, that's right, David, and that's not
really in or on or what will be your watch. So let me talk to
you about what is your watch. Because certainly there's a lot
of public debate lately about the balance of our national
energy policy between supply and demand and between traditional
sources and renewable resources.
And we are about to see the effort of the administration.
This committee will have the responsibility of coupling that
with an energy bill that we've introduced that we are well
aware of. And blending those together and getting them to the
floor so this country can engage in a national energy debate as
we should. And then hopefully the Congress will act in a timely
fashion.
But do you think that our national energy policy should
focus in the near term on our largest sources of energy--coal,
nuclear, hydro, and gas, and what role should renewable
resources play in that?
Mr. Garman. Senator, I, of course, as I'm very clear, come
before the committee as an advocate of renewable energy and
conservation.
And having said that, however, I do recognize the current
energy balance. I recognize the fact that we currently get 10
percent of our total energy from renewable energy and only 5
percent, only half of that from non-hydro renewable energy.
There is emphasis, of course, on wind and solar in a lot of
the discussions. We hope that wind and solar can be competitive
in the marketplace and do a great deal more, but that has to
come with a realistic recognition that right now wind and solar
together produce about one-tenth, between one-tenth, two-tenths
of 1 percent of our total electricity mix. So it is important
to inject an important dose of realism in our expectations of
just how quickly in the short term we can increase our reliance
on renewable energy.
Senator Craig. David, I'm told by those who are in the wind
business that the new turbines are very efficient because they
operate or the revolution is slower, they are less damaging to
birds.
And that if we would extend from a 2-year to a 5-year
interval, the tax credits we offer that there would be
substantially more investment in these areas. Do you know or
has there been any discussion about that approach obviously to
enhance the opportunities to bring wind on line?
Mr. Garman. Currently, wind generators enjoy a production
tax credit for wind generation. And we are in a period right
now of great growth in wind generation. In the midst of, say,
the 24-month period that we're in the midst of now, wind energy
is expected to essentially double.
So we have created an atmosphere, if you will, an
investment atmosphere where wind is competitive with other
sources of energy.
Now, of course, if you look at a map of the wind resources
in the United States, you recognize that you can't put a
windmill everywhere. Your class six, class five wind resources
don't exist, are not evenly distributed across the Nation. So
there are physical limitations as well that we have to be
realistic about.
Senator Craig. Well, thank you for that comment. Now, the
real tough question, the one that was asked by me and others
continually over the last few years but we never got an answer
out of the former administration. Do you consider hydro power
to be a renewable energy resource?
Mr. Garman. Yes, sir.
Senator Craig. Thank you. That's a wonderful response,
David.
In the area of nuclear energy research, what role should
nuclear energy play in our energy policy? And I'm asking any of
you who feel qualified to respond to that. What should DOE be
doing in its office of nuclear energy to support the role of
nuclear energy? Because I have a very well-informed suspicion
that the administration is going to become a very active
advocate of nuclear energy. Response?
Mr. Blake. I think, Senator, that will be laid out in the
Vice President's task force report. Again, not having
participated, I don't know the specifics, but I would think
that the most direct and important activity is relicensing some
of the existing facilities. And then thinking about where the
country might go in terms of new technology.
Senator Craig. Anyone else want to respond to that? Okay,
then, let me ask this of you, Mr. Card. In the past, the
position of under secretary has functioned as the kind of chief
scientist for DOE. If confirmed, will you oversee the DOE's
science programs, and what are your thoughts on DOE as a
primary science agency of the Federal Government? And what role
do you think DOE should play in fundamental scientific
research?
Mr. Card. Well, DOE is, Senator, one of the lead science
agencies in the Federal Government. I see no reason why it
shouldn't continue to play that role until I'm told otherwise.
My goal would be to support that role and build it from where
it is today.
Senator Craig. Well, I think we have a lot of reinvestment
to do in our science infrastructure at our national labs.
As you know, many of our facilities are 50 years old and,
in some instances, finding it difficult to attract new workers.
So you do have, I think, an important responsibility. Because I
do believe, as I think most on this committee believe, that DOE
is a primary science agency for our country, and that these
labs are extremely valuable resources, and they ought to be
engaged in primary scientific research appropriate.
Let me turn to my colleague, Senator Ron Wyden, who has
joined us. Ron.
Senator Wyden. I thank, my friend. Gentlemen, welcome, and
it's good to visit with you a bit in the office, Mr. Blake, and
I do have some questions as I indicated I would at that time.
As you know, in the last few days California has been hit
with another round of blackouts, rolling blackouts. I talked to
folks in Palo Alto yesterday at my mom's nursing home. They
said they were looking at blackouts yesterday, and I guess I'd
like to begin by saying do you see any scenario by which the
Energy Department would order Bonneville Power or other
utilities to send power to California again in this kind of
environment?
Mr. Blake. It's difficult to rule out any scenario, but I
know that's not on the planning horizon.
Senator Wyden. Given the fact that you won't rule it out,
I'm going to have to ask you other questions because this is a
matter of enormous importance to Senator Craig's constituents
and mine. If you end up ordering my constituents to send power
to California again, do you think California ought to be
required to provide States full faith in credit as a guarantee
if people in Idaho and Oregon and New Mexico have to send power
under Federal order to California?
Mr. Blake. Senator, I appreciate that you asked that
question for me 2 days ago. I think at that point that is still
in the realm of a hypothetical question. I don't have the
answer for you in terms of what the Department's response would
be on those circumstances.
Senator Wyden. But, no, your opinion as a policy matter if
somebody is ordered to sell power to California, do you think,
in your opinion as a policy matter, that the State ought to
have to put its full faith in credit behind it?
Mr. Blake. I think you'll have to look at the other
conditions of the generator sales into California and whether
that would actually be creating more stress on the system than
relieving stress.
Senator Wyden. Well, you told me in my office when you were
there a couple of days ago that you wanted to bring to the
Energy Department a private-sector approach, a management
approach which is welcome. What would have been the private-
sector approach if GE had supplied gas turbines to California
utilities, and those utilities hadn't paid GE back for months?
What would you be doing about it as a GE executive.
Mr. Blake. As a GE executive, we often have issues with
important customers where immediate payments aren't made. And
where we often work out payment terms in contemplation of long-
term relationships. I think that's particularly true in an area
like electricity where fundamentally because of the
interconnected grid you have to maintain good relations amongst
the States.
Senator Wyden. Well, that's interesting, because that's my
sense of what the private sector approach is, but I don't see
any evidence that the Energy Department is pursuing that
approach right now from the California ISO.
And the fact of the matter is California owes somewhere in
the vicinity of $100 million that was sent by Federal order
under my constituents, under Craig's constituents, Senator
Bingaman's constituents.
You just said you'd use the private-sector approach, but I
don't see any evidence that the Energy Department is doing that
right now.
I went down to Senator Abraham's office several weeks ago
and asked for that approach. Let's have a private-sector
approach, pay it back. I went down there at my initiative to
ask it, and I haven't heard anything about what the Energy
Department is doing. Can you enlighten me as to whether
something is being done?
I've got workers who are out of work at aluminum plants in
communities in my State just flat on their back. They were
forced to send power under Federal order. You just said this
morning you wouldn't rule out having them do it again. You
wouldn't rule it out again, and yet I don't see any evidence
from the responses you're giving me this morning that there's
any plan to even get paid back what's already owed. So why
don't you enlighten me on that.
Mr. Blake. Well, Senator, first my response was to the
question whether there was any scenario where that would be
possible. And it would seem reckless to completely rule that
out, certainly based on what I know now.
In terms of California status, I believe the Federal
Government's position is not unique amongst the energy
providers in the State. And this is a complex and difficult
matter. The Department is aware of your concerns. I think
they're shared by many others, and it's an issue that's going
to have to be resolved by the State going forward.
Senator Wyden. What is different here is that we were
required to do it under Federal order. And you're not ruling
out doing it again, number one. You're not willing to say that
the position of the Department is that California at least
ought to put its full faith in credit behind it.
I don't see any urgency on the part of the Department in
terms of getting the Northwest paid back.
As you know, Bonneville Power is a Federal entity. Let me
just tell you, I think the Department's handling of this, in my
view, is very disappointing. Suffice to say, I intend to stay
with this until our constituents are made whole. And the fact
that you're willing to say you're going to not rule out doing
it exactly the same way, not even requiring that California put
its full faith in credit behind the next one I think is just
unacceptable.
Let me turn my attention to another area and we'll see if
we can do a little better on this one than your previous
answers.
Recently, there has been discussion about how the four
major power wholesalers, Enron, Reliant, Dynergy, and Duke run
trading exchanges in Houston that can have a significant impact
on energy prices nationwide. In effect, people are coming and
going and trading electricity and natural gas.
My view is that if we're going to treat electricity as a
commodity, there has got to be open access to information for
markets to function efficiently.
As it stands now, basic operating information required to
evaluate the severity of power problems and the appropriate
steps that would be needed to protect our systems from outages
are just unavailable in other parts of the country. Do you
think markets would work more efficiently if more operating
information about electricity markets, talking about supply and
demand and transmission, were available to market participants
and to the public? And that there was more transparency in
these exchanges?
Mr. Blake. Markets always work better with more
transparency and more data. And I think that the issue that's
being balanced there is you also can't give competitors access
to vital competitive information. And that's the balance that
needs to be struck, and that I believe the Department is
looking for.
Senator Wyden. I've been talking to both industry and
public interest groups about introducing legislation to promote
such an approach. I've talked to a number of my colleagues on
this committee about that. Can I take your answer as one that
you would be sympathetic to the general thrust of legislation
like this that would ensure that with energy being
commoditized, people ought to get more information about
transmission and outages and the like?
Mr. Blake. It is absolutely a critical thing to look at as
we look at the market, as you say.
Senator Wyden. One last question, if I might. As I talked
about in the office, I was concerned about the proposed cleanup
cuts in the Hanford budget. My understanding is if cleanup
programs are going to be cut by $180 million, the proposed
funding for the vitrification plant to process the high level
waste is 200 million less than what experts say is needed. What
assurance can you give to the million people who live
downstream from Hanford that the cleanup and the effort to
protect the river is going to stay on track, given these cuts?
Mr. Blake. In the Department's budget submission, I know
that the Department is still fully committed to meeting its
obligations. I think one of my colleagues may be better able to
address the specifics of the budget submission. But I know from
the briefings I have received that there's a great level of
confidence of still being able to achieve the end result.
Senator Wyden. You told me in the office that you were
going to look to try to slash overhead as a way to try to get
more dollars to cleanup. As I say, I think the proposal itself,
and I noted that the Member of the Congress, the Republican
Congressman from the area thinks it's woefully inadequate. Do
you plan to really target overhead expenses as a way to try to
stretch dollars? And if that's the case, what kind of savings
do you think could be generated there?
Mr. Blake. I think what I said is it's always possible to
look at more effective and efficient and cost-effective ways of
doing things, and that overhead is one area you'd look at.
You'd also look at how can you better achieve the same end
result through different methods. I haven't given a specific
look at the Hanford situation or any of the other specific
budgetary issues.
Senator Wyden. When do you plan to?
Mr. Blake. As soon as I'm confirmed.
Senator Wyden. Thank you, Mr. Chairman.
Senator Craig. Mr. Francis, Senator Wyden and I share the
same concern about Federal orders. I think it is important to
reflect what has happened with this administration coming to
town, inheriting a Federal order that had been put in place by
the past administration. And we strongly questioned that at the
time. They did extend it one time but agreed they would never
extend it again.
While we don't have the absolute assurance, we have the
clear attitude and the expression by the President and the Vice
President that there will not be an extension in the market of
an order of a Federal order, and that is very critical to the
West and very critical to the grid. And most importantly it's
critical to California to get their act together.
And if we keep, quote, ``bailing them out,'' then there's
less willingness to do that. It's a rather harsh way of doing
that.
Senator Wyden. Would my friend yield?
Senator Craig. Surely.
Senator Wyden. I thank him, and I think he knows I'm going
to work very closely with him on all of these issues. What
concerned me about the witness' answer, it seems to me he
wouldn't rule it out. And the President and the Vice President
earlier had, and that's what I find troubling.
Mr. Blake. I didn't--let me be clear.
Senator Craig. You may speak, Mr. Blake.
Mr. Blake. Thank you. I didn't intend by that statement to
suggest anything other than what Senator Craig has set up in
terms of the administration's position and its, as I said, its
lack of intent to do so.
Your question was is it conceivable to look up any scenario
where that would happen? I--that's one where I can't--it's a
hypothetical question, and it would seem to me, as I said, to
be a bit reckless to rule out that under any scenario. But I
did not intend----
Senator Wyden. If the Senator from Idaho has the time, I
just want him to know that I'm going to work to make sure that
the President's commitment that they weren't going to do it
again is what's the approach of this administration. Because I
find that answer very troubling, and I thank you for yielding.
Senator Craig. Well, thank you. I think it is important
that the record show the scenario of those orders and the
frustration this committee had or at least a good many of us on
this committee had with the initial one. And the very real
pressure that we did put on the new administration, and frankly
their response inappropriately placed.
Lastly, the expression that Senator Wyden had about cleanup
at Hanford and the--I had about cleanup at the INEL is just
mutually shared. The budget is woefully inadequate in those
area.
Now, I will say as we bring this budget resolution to the
floor, we believe we have found a recommendation difficult, and
we hope the administration will support us in that remedy with
some supplemental funding and about a billion dollars worth of
it going into the lab structure for the purpose of cleanup.
Coming out of a defense supplemental. But that is not yet fully
assured.
We believe we can do that, we have commitments, and that is
the intent of this Senator.
It is certainly the intent of the chairman of the Budget
Committee that we can effectively fund, not just flat fund but
fund with the appropriate increases, the necessary program
levels in those areas. So I hope we can get that accomplished
that you're going to have additional resources to work with.
But I do believe that is a commitment that we now have, and
that will be done.
Having said that, gentlemen, thank you very much. All
additional questions for the record should be communicated to
Chief Counsel's office by 5 p.m. this afternoon. I guess that's
what I just read.
Anyway, thank you all very much. Best of luck. We'll work
hard to expedite your confirmations and the committee will
stand adjourned.
[Whereupon, at 10:59 a.m., the hearing was adjourned.]
APPENDIX
Responses to Additional Questions
----------
Department of Energy,
Washington, DC, May 14, 2001.
Hon. Frank Murkowski,
Chairman, Energy and Natural Resources Committee, Dirksen Senate Office
Building, Washington, DC.
Dear Mr. Chairman: I want to thank you and Senator Bingaman for the
opportunity to appear before the Committee on Energy and Natural
Resources as Deputy Secretary nominee at the U.S. Department of Energy.
Enclosed for the record are the answers to the post hearing
questions submitted to me in writing by members of the committee.
Please let me know if I can be of any further assistance.
Sincerely,
Francis Blake.
[Enclosures]
Response to Question From Senator Murkowski
Question. The Energy Information Administration does an excellent
job reporting on energy trends and specifics, but there are always
things they can do better. I think part of the reason we have the
energy problems we do is the American public hasn't gotten information
that is easily understood--much of the EIA's information is good for
analysts and governments, but not so good for the average American.
Will you take a look at EIA's policies regarding making some more
``readable'' information so American consumers, educators and others
can more easily use the information for their decision-making?
Answer. Yes, I understand your concerns about making information
available to the public in a more ``readable'' format and I will convey
your concerns to the Energy Information Administration management team.
As you indicated, there is room for improvement in this area.
______
Department of Energy,
Washington, DC, May 14, 2001.
Hon. Frank Murkowski,
Chairman, Energy and Natural Resources Committee, Dirksen Senate Office
Building, Washington, DC.
Dear Mr. Chairman: I want to thank you and Senator Bingaman for the
opportunity to appear before the Committee on Energy and Natural
Resources as Under Secretary nominee at the U.S. Department of Energy.
Enclosed for the record are the answers to the post hearing
questions submitted to me in writing by members of the committee.
Please let me know if I can be of any further assistance.
Sincerely,
Robert G. Card.
[Enclosures]
Response to Question From Senator Murkowski
Question. Your efforts at Rocky Flats pioneered the closure site
concept for DOE's cleanup program. Closing a DOE site obviously depends
on removing the nuclear waste material from the closure site and
shipping and disposing of it safely--all of which sounds like an
expensive proposition. The DOE's Ohio Field Office has had a lot of
success and cost savings through its use of commercial disposal
facilities.
Could you comment on the use of commercial means for shipping and
disposing of the low-activity waste to keep the taxpayer costs as low
as possible?
Answer. Experience at both the Ohio Field Office and Rocky Flats
has shown a benefit in the use of commercial shippers and disposal
facilities. Commercial options can be an important element of DOE's
waste shipping and disposal strategy, potentially providing cost-
efficient alternatives to the use of federal disposal facilities.
Having a broad range of disposal options and shipping capabilities,
including commercial ones, is important to the long-term success of the
EM program, both in terms of potential taxpayer savings and operational
redundancies in case a particular site or shipper is not able to
perform. Then within those options available, DOE should always choose
the shipping and disposal options that are in the best interest of the
Government.
______
Department of Energy,
Washington, DC, May 14, 2001.
Hon. Frank Murkowski,
Chairman, Energy and Natural Resources Committee, Dirksen Senate Office
Building, Washington, DC.
Dear Mr. Chairman: I want to thank you and Senator Bingaman for the
opportunity to appear before the Committee on Energy and Natural
Resources as the Assistant Secretary for Energy Efficiency and
Renewable Energy nominee at the U.S. Department of Energy.
Enclosed for the record are the answers to the post hearing
questions submitted to me in writing by members of the committee.
Please let me know if I can be of any further assistance.
Sincerely,
David Garman.
[Enclosures]
Responses to Questions From Senator Thomas
Question 1. In Wyoming we have sugar beet tops, wheat straw, corn
stover and barley straw as agricultural waste products. I understand
technologies are being developed by biotechnology companies to use
enzymes to convert those waste products to energy and other products.
What can DOE do to help the private sector move these technologies
forward in a speedier fashion?
Answer. I believe the Department of Energy has much to offer in
accelerating the research, development, and commercialization of
biobased products and bioenergy technology into the United States
economy. I understand that the Department has integrated efforts
underway within its Offices of Science, Fossil Energy, and Energy
Efficiency and Renewable Energy focused toward the realization of a
biorefinery facility. Such a facility, located in rural America, would
use locally grown feedstocks as the raw materials for high value fuels,
products, and power. Research is presently underway at DOE laboratories
and through cost shared projects with industry and universities, on the
conversion processes for biomass to fuels and products. Specialized
yeasts and new enzymes are being developed to optimize the conversion
processes and make the greatest use of available feedstocks. Because of
their abundance, wheat straw, rice straw and corn stover are targeted.
Should I be confirmed, I will work to promote the partnerships needed
to advance technologies and move the Biorefinery from a concept to a
sustainable industry.
Question 2. The New York Times reports today that Vice President
Cheney is supporting clean energy production methods that use enzymes
to convert waste products to energy. President Clinton had signed an
Executive Order to begin a biobased products and bioenergy initiative.
What will the Bush administration do under your leadership to build on
these efforts to help us develop carbohydrate based industrial
processes?
Answer. The U.S. Department of Energy is working with industry and
university partners on research and development in this area, and will
conform current efforts in accordance with the direction of the Vice
President and the new national energy strategy. I believe there is
great promise in developing technologies which will reduce our
dependence on imported oil while allowing America's farmers to provide
not only the food we need but also the energy we demand.
Question 3. Senator Lugar authored a bill to fund research into
enzyme biomass technologies. I understand this bill has not been well
funded by the appropriations committee. What level of funding do you
think Congress should provide for this program?
Answer. I fully support the research and development goals outlined
in the Biomass Research and Development Act of 2000. The pending
technical priorities of the Biomass Research and Development Technical
Advisory, Committee as well as guidance in the national energy strategy
will act as the launching point for any needed changes in direction and
funding. It is my understanding that no new appropriations have been
made available to date to implement the Act. However, because of the
importance of this research, I also understand that DOE's Office of
Energy Efficiency and Renewable Energy (EERE) has used funding from its
base programs to allow modest solicitations in support of the Act.
Moreover, EERE has aligned its ongoing programs in fuels, power, and
products with the goals and guidance of the Act in order to work at
achieving its goals.
Question 4. The USDA and DOE have been required by the Lugar-Udall
legislation to set up a Technical Advisory Committee made up of
industry people to advise these agencies on advanced biomass conversion
technologies. Jack Huttner from Genencor and Glenn English from NRECA
are the co-chairs of this group. Do you know how many times they have
met and what recommendations they are developing for DOE? How much
weight would you give these recommendations from the Technical Advisory
Committee?
Answer. The Biomass Research and Development Technical Advisory
Committee was established on November 22, 2000. It is my understanding
that they have met three times or once each quarter as required by the
Biomass Research and Development Act of 2000. This committee, with 25
members of industry, universities, farm interest, and environmental
groups, is positioned to provide critical recommendations in the area
of technical priorities to DOE as well as USDA. While I do not yet know
what recommendations they will make, the committee is reportedly
looking at existing federal investments, emerging technologies, and
strategies for future investments. Their next meeting is scheduled for
June 11, 2001.