[Senate Hearing 113-141]
[From the U.S. Government Publishing Office]
S. Hrg. 113-141
CROLEY, SMITH, AND KIAAINA NOMINATIONS
=======================================================================
HEARING
before the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
ON
THE NOMINATIONS OF DR. STEVEN P. CROLEY TO BE GENERAL COUNSEL OF THE
DEPARTMENT OF ENERGY, MR. CHRISTOPHER A. SMITH TO BE ASSISTANT
SECRETARY OF ENERGY (FOSSIL ENERGY), AND MS. ESTHER P. KIAAINA TO BE
ASSISTANT SECRETARY OF THE INTERIOR FOR INSULAR AREAS
__________
NOVEMBER 14, 2013
Printed for the use of the
Committee on Energy and Natural Resources
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
RON WYDEN, Oregon, Chairman
TIM JOHNSON, South Dakota LISA MURKOWSKI, Alaska
MARY L. LANDRIEU, Louisiana JOHN BARRASSO, Wyoming
MARIA CANTWELL, Washington JAMES E. RISCH, Idaho
BERNARD SANDERS, Vermont MIKE LEE, Utah
DEBBIE STABENOW, Michigan DEAN HELLER, Nevada
MARK UDALL, Colorado JEFF FLAKE, Arizona
AL FRANKEN, Minnesota TIM SCOTT, South Carolina
JOE MANCHIN, III, West Virginia LAMAR ALEXANDER, Tennessee
BRIAN SCHATZ, Hawaii ROB PORTMAN, Ohio
MARTIN HEINRICH, New Mexico JOHN HOEVEN, North Dakota
TAMMY BALDWIN, Wisconsin
Joshua Sheinkman, Staff Director
Sam E. Fowler, Chief Counsel
Karen K. Billups, Republican Staff Director
Patrick J. McCormick III, Republican Chief Counsel
C O N T E N T S
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STATEMENTS
Page
Croley, Steven P., Nominee to be General Counsel, Department of
Energy......................................................... 8
Hirono, Hon. Mazie K., U.S. Senator From Hawaii.................. 2
Kiaaina, Esther P., Nominee to be Assistant Secretary for Insular
Areas, Department of the Interior.............................. 13
Landrieu, Hon. Mary, U.S. Senator From Louisiana................. 16
Murkowski, Hon. Lisa, U.S. Senator From Alaska................... 5
Schatz, Hon. Brian, U.S. Senator From Hawaii..................... 4
Smith, Christopher, Nominee to be Assistant Secretary for Fossil
Energy, Department of Energy................................... 10
Stabenow, Debbie, U.S. Senator From Michigan..................... 7
Wyden, Hon. Ron, U.S. Senator From Oregon........................ 1
APPENDIXES
Appendix I
Responses to additional questions................................ 39
Appendix II
Additional material submitted for the record..................... 48
CROLEY, SMITH, AND KIAAINA NOMINATIONS
----------
THURSDAY, NOVEMBER 14, 2013,
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The committee met, pursuant to notice, at 9:39 a.m. in room
SD-366, Dirksen Senate Office Building, Hon. Ron Wyden,
chairman, presiding.
OPENING STATEMENT OF HON. RON WYDEN, U.S. SENATOR FROM OREGON
The Chairman. The committee will come to order.
The committee is going to work this morning on 2 matters.
We're going to conduct a short business meeting to consider
3 military land withdrawal bills needed to reserve public land
for 6 military bases. As soon as we have a quorum for action,
we'll proceed to address each of those matters. None of them
are controversial. We'll move expeditiously.
Until we have that quorum, we're going to begin this
morning with a hearing to consider 3 nominations.
Dr. Steven Croley, to be the General Counsel of the
Department of Energy.
Mr. Christopher Smith, to be an Assistant Secretary of
Energy for Fossil Energy.
Ms. Esther Kiaaina, I hope I'm not doing too much violence
to that.
Senator Schatz. Mr. Chairman, Kia'aina.
The Chairman. Kia'aina. Alright. That is the fourth
possible pronunciation I've been given in the last half an
hour. We're delighted to have you.
You'll be an excellent nominee. I'll just put it that way.
Alright, let us then, we have some introductions that are
going to begin this morning.
Why don't we begin with Senator Hirono? I know you have a
tight time schedule.
Senator Schatz, would you like to make some introductory
comments as well?
Senator Schatz. I defer to Senator Hirono and then we can
go through the regular order.
The Chairman. Very good.
Senator Hirono.
STATEMENT OF HON. MAZIE HIRONO, U.S. SENATOR
FROM HAWAII
Senator Hirono. Thank you very much, Senator Schatz.
Chairman Wyden and members of the committee and of course,
my colleague from Hawaii, Senator Schatz, thank you very much
for the opportunity to be here this morning to introduce a very
well qualified nominee and a person I'm honored to call a
friend, Esther Kiaaina.
The Chairman. Kiaaina.
Senator Hirono. Esther has dedicated herself to public
service, especially on behalf of the people of Hawaii and the
Pacific. It is because of her work, her knowledge of the area,
the issues and the people that her nomination to serve as
Assistant Secretary for Insular Affairs is so appropriate.
Regarded in Hawaii for her extensive knowledge of native
Hawaiian issues, Esther is also respected for her knowledge of
the entire region from Guam to the freely associated States.
Hawaii's relationship with our fellow Pacific Island
territories and nations is strong. Many citizens of the freely
associated states, the Republic of Palau, the Republic of the
Marshall Islands, the Federated States of Micronesia reside in
Hawaii through their respective Nation's compact with the
United States. As Hawaii has always done, we welcome this new
influx of cultures and people.
That is not to say that there have not been some growing
pains. But legislation, like the Compact Impact Reimbursement
Act which Esther helped craft has helped ease some of the
strain.
Esther also spent time working for the people of Guam
serving as the Chief of Staff for then Congressman Robert
Underwood. Here again Esther's knowledge about the culture of
Guam, its people and its issues were apparent. Navigating the
complexities of cultural sensitivities while working with the
Federal bureaucracy on an issue such as land ownership is no
easy feat. But Esther's understanding of Guam helped to
shepherd through both the Guam Excess Land Act and later the
Guam Land Reform Act.
The former resulted in the returning of 3,200 acres of land
from the Federal Government to the territory and the later
guarantees the government of Guam the right of first refusal to
any Federal excess lands in the territory.
It may be easy to downplay this understanding of other
islands, cultures and people as an intrinsic part of anyone
from Hawaii. Geographically we are a chain of islands, after
all. Certainly there are some parallels. But I believe and I'm
confident that the committee will come to see that Esther
possesses an in-depth knowledge and passion for this region and
its people that makes her uniquely well qualified and suited
for this position.
Thank you again for your latitude and allowing me to speak
on her nomination. I'm confident that the committee will find
that Esther truly is the best nominee for guiding our
relationship with the territories and the independent nations
of the Pacific.
Aloha to you, Mr. Chairman and this committee.
The Chairman. Thank you so much, Senator.
I noticed you've called our nominee Esther. I was debating
whether to call her Esther or the nominee, but I believe now I
can say, Ms. Kiaaina is very lucky to have you in her corner.
Senator Hirono. As well as Senator Schatz.
The Chairman. Senator Schatz as well.
We'll excuse you at this time.
Senator Hirono. Thank you.
The Chairman. Alright.
So let us proceed then with the hearing with respect to our
nominees. We are still short of a quorum. So let me explain the
rules of the committee to each of the nominees.
The rules of the committee which apply to all nominees
require that they be sworn in connection with their testimony.
So please rise and raise your right hand.
Do you solemnly swear the testimony you're about to give to
the Senate Committee on Energy and Natural Resources shall be
the truth, the whole truth and nothing but the truth, so help
you God?
[A Chorus of I do.]
The Chairman. You all can be seated.
Yes, before you begin your statement let me ask 3 questions
addressed to each nominee before this committee.
First, will you be available to appear before the committee
and other congressional committees to represent departmental
positions and respond to issues of concern to the Congress?
[A Chorus of I will.]
The Chairman. Are you aware of any personal holdings,
investments or interests that could constitute a conflict of
interest or create the appearance of such a conflict should you
be confirmed and assume the office to which you've been
nominated by the President?
[A Chorus of no.]
The Chairman. Are you involved or do you have any assets
held in a blind trust?
[A Chorus of no.]
The Chairman. Alright.
Let me invite the nominees to introduce their family
members. Then before you all make your opening statements I
want to recognize our colleague from Hawaii. But please if all
of you will introduce your family members. That's a tradition
that we're proud of here at this committee.
Why don't we begin with you on that, Dr. Croley.
Mr. Croley. Thank you, Mr. Chairman. I'd like to introduce
my wife, who is here--from Detroit. I'd also like to
acknowledge my children: Jack, Anna, Harry and Matt, who are
not here physically, but are with us virtually.
The Chairman. Very good.
Mr. Smith.
Mr. Smith. Thank you, Mr. Chairman.
First of all I'd like to introduce and thank my wife,
Patricia, who is here with us today. I'd also like to introduce
my 2 children, Andrew and Amanda, 7 and 9, who are also joining
us.
I'd like to introduce my mother-in-law, Ms. Yoshea
Hardening, who is visiting with us.
I'd also like to introduce, Ms. Talia DeSantacompos, who is
living with our family for a year. So that's my support
network.
The Chairman. Very good. We're glad that they are all here.
Let us then have any introductions from Ms. Kiaaina.
Ms. Kiaaina. Mr. Chairman, regrettably my mother, for
health reasons, was unable to be here as well as for my
siblings, who help to take care of her. But I'm heartened to
have a lot of friends from Hawaii, the Pacific and Washington,
DC here today to support me. I do know that my family is
watching via the Internet.
[Laughter.]
Ms. Kiaaina. So I wanted to say, hello and good morning at
4:30 in the morning Hawaii Time.
The Chairman. Very good.
Let's recognize Senator Schatz and then I want to recognize
my friend and colleague, the Ranking Minority Member, Senator
Murkowski.
STATEMENT OF HON. BRIAN SCHATZ, U.S. SENATOR
FROM HAWAII
Senator Schatz. Thank you, Mr. Chairman.
It gives me great pleasure and pride to introduce a highly
qualified nominee for Assistant Secretary for Insular Affairs
and my friend, Esther Kiaaina. I'd like to welcome Esther and
thank her for appearing before the committee. I cannot think of
a better candidate for this position.
Esther brings not only a deep knowledge of the territories
and freely associated states to Insular Affairs, but also
practical, on the ground experience. She knows the places, the
people and the issues.
All of the United States territories and freely associated
states, but perhaps especially those in the Pacific, have a
unique strategic importance to our country. I'm confident that
Esther's leadership will help to deepen and improve the
connection between these special places and the rest of the
country. I'm glad to see Congressional leadership from
throughout the Pacific region here to support Ms. Kiaaina's
nomination.
With nearly 2 decades worth of experience on Capitol Hill
as a Chief of Staff to former U.S. Representative Case and
Robert Underwood and as Legislative Assistant to former Senator
Daniel Akaka. Esther was instrumental in the passage of
legislative initiatives impacting native Hawaiians, U.S.
territories and the freely associated states. As Senator Hirono
noted these include the Compact Impact Reimbursement Act and
several bills, especially important to Guam, such as the Guam
Land Return Act.
Esther currently, skillfully, serves as the First Deputy
Director of the Hawaii Department of Land and Natural Resources
where she oversees the management of 1.3 million acres of
public lands and near shore ocean resources in the State of
Hawaii. In our State Esther has worked to protect watersheds
and threatened and endangered species, control invasive
species, preserve land and oceans and strengthen public/private
and enforcement partnerships.
Esther graduated from the Kamehameha Schools in Honolulu,
earned her BA in Political Science and International Relations
from USC and a JD from the George Washington University Law
School. She also attended the Johns Hopkins University's School
of Advanced International Studies.
All of us in Hawaii are very, very proud of her.
If confirmed, I know she will use her experience and
expertise to lead the Department of Interior's efforts to
coordinate Federal policy for Guam, the Commonwealth of the
Northern Mariana Islands and the U.S. Virgin Islands and
American Samoa. She would also have the responsibility to
administer and to oversee Federal assistance to the Federated
States of Micronesia, the Republic of the Marshall Islands and
the Republic of Palau.
I'm deeply thankful for Esther's service and look forward
to her confirmation. She is the most qualified candidate for
this position. She will be one of the highest ranking native
Hawaiian women in the Administration as well as one of the
highest ranking people from Hawaii in this Administration.
Once confirmed Esther will hold a top leadership position
on policy and one of the largest agencies in the executive
branch.
I look forward to today's hearing. As this position has
gone unfilled for more than 1 year, I expect and hope for an
expeditious and efficient confirmation process.
Thank you, Mr. Chairman and thank you Ms. Kiaaina.
The Chairman. Thank you, Senator Schatz.
Suffice it to say, Ms. Kiaaina, you know that Senator
Schatz is doing important work. So he'll be an important
partner for you. He chairs our Water and Power Subcommittee
doing important legislation, the Hawaii homes legislation. So I
know he's looking forward to having you in this position, as am
I.
So let us now hear from Senator Murkowski for her opening
statement.
For colleagues who have just come in, we're, even by Senate
standards, a little hectic this morning. When we have a quorum
we're going to have a short business meeting to handle 3 pieces
of legislation which are non-controversial. Until we have a
quorum we're going to proceed with our nominations.
At this point let's hear from Senator Murkowski.
STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR
FROM ALASKA
Senator Murkowski. Thank you, Mr. Chairman. I apologize to
the committee for my tardy arrival this morning. But thank you
for joining us this morning to each of the nominees that are
before us.
Before I make comments as to our nominees, I want to
briefly make a statement about the legislation that will take
up, hopefully, when we get a quorum here.
But I am pleased that we have been able to schedule a
markup to consider several military withdrawal bills. These
withdrawals of our public lands are critical to support
military readiness and can only be accomplished through
Congressional action. I'm pleased that this committee will have
done its work on these withdrawals effectively and efficiently.
We know that the National Defense Authorization bill is
going to be coming to the Floor soon, hopefully very, very
soon. This work product can be included within that. Many of
these land withdrawals are expiring next year. So it's
important that we act expeditiously as a committee. So I
appreciate your willingness to do this, Mr. Chairman.
I would like to add my welcome to each of our nominees here
this morning. I'd also like to acknowledge the presence here
this morning of Congressman Sablan as well as Congresswoman
Bordallo, always nice to have you before the committee here.
Mr. Croley, you are a noted legal scholar, counselor.
You've had an opportunity that has been afforded very few
lawyers. That is the fact that you've provided counsel to the
President in the White House.
It is my hope that you will bring that experience to bear
as you move to become the Senior Legal Officer of the
Department of Energy and the leader of many, many lawyers in
the General Counsel's office there. It's no secret that I'm of
the view that adherence to the rule of law, close attention to
the requirements of the applicable statutes and good practical,
legal advice are absolutely necessary in all of our agencies.
DOE is certainly no exception there.
So whether the subject is Loan Guarantee Program or perhaps
the licensing of a repository for spent nuclear fuel, solid,
legal advice, well within the main stream, I think, serves the
Department well. So I'm eager to hear about your plans and
aspirations for refinement in that regard.
Mr. Smith, welcome back to the committee to you. I have
appreciated your preparation, your candor in prior appearances
before the committee. No doubt those good habits matured at
West Point and grew even stronger during your career in the
private sector and in government.
I'm counting on you for your perspective. I hope that you
will be a vigorous advocate for affordable and reliable energy
from sources that are far too often, perhaps maligned. I think
you have a challenging position at this time especially now
when many want to count out energy from hydrocarbons just as we
are unlocking their abundance and improving their environmental
performance. I think dramatically.
So, I'm expecting you to call the issues within your
portfolio as the evidence dictates and to stand up and be
counted within DOE, across government and beyond.
Finally, Ms. Kia--now I'm going to say it because I can.
[Laughter.]
Senator Murkowski. Kiaaina. Key Ianna.
Ms. Kiaaina. Yes.
Senator Murkowski. Key Ianna. I had to think about it. All
the vowels.
Senator Franken. If the Ranking Member hadn't been late,
you would have known that.
[Laughter.]
Senator Murkowski. I understand that. That's why I insisted
on doing it myself rather than asking for help because I know
that it was a subject of discussion.
[Laughter.]
Senator Murkowski. We will never forget your name, Esther.
[Laughter.]
The Chairman. Sticking up for Senator Murkowski, I've been
trying and I was here on time.
[Laughter.]
Senator Murkowski. Kiaaina. Ms. Kiaaina. Welcome back to
the Senate where you have served for many years on the staff of
our distinguished former colleague, Senator Akaka. We miss him.
Thank you for your years of service with him.
As I believe you know our committee has a long, long
tradition of meeting our responsibilities with respect to our
insular affairs in a non-partisan way. We look forward to
continuing that time tested approach on your watch. I'll be
listening carefully as you outline your qualifications and your
priorities.
But it's important to hear from our colleague on the
committee, Senator Schatz. I passed Senator Hirono in the
hallway and she said she had just come from this hearing to
testify on your behalf. So I know you have good, strong support
from friends and family and supporters back home. So welcome to
you, aloha.
With that, Mr. Chairman, thank you.
The Chairman. As we search for a quorum let's have Senator
Stabenow make an introduction of Mr. Smith. Then perhaps----
Senator Stabenow. Actually Dr. Croley.
The Chairman. Oh, Dr. Croley, excuse my manners.
Senator Stabenow. Yes. Yes. Yes.
The Chairman. Hopefully the other 2 will appear.
STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM MICHIGAN
Senator Stabenow. Good morning. Yes and welcome to
everyone. But I have to pull my--talk about our wonderful
nominee for General Counsel, Department of Energy from
Michigan. Actually Dr. Croley was born and raised in Dewitt,
Michigan which is just a few miles north of where I live. So
it's great to see you.
Mr. Croley. Thank you.
Senator Stabenow. As well as all the nominees.
But Mr. Chairman, Dr. Croley is a graduate of the
University of Michigan and Yale Law School, earned his PhD in
politics from Princeton University. I have to say it's a very
historic moment because I have 2 degrees from the rival
institution of Michigan State University. I'm still willing to
be here today introducing, a University of Michigan graduate.
[Laughter.]
Senator Stabenow. So very proud.
Mr. Croley. Thank you.
Senator Stabenow. He earned his prestigious clerkship on
the U.S. Court of Appeals for the DC Circuit before returning
home to Michigan in 1993 to become a law professor at the
University of Michigan. He served 4 years as a Special
Assistant U.S. Attorney for the Eastern District of Michigan
before coming to work for the executive branch in 2010. Started
working on regulatory issues for the White House Domestic
Policy Counsel and became a Senior Counsel to the President.
He's currently at the White House Counsel's Office as Deputy
Assistant to the President and Deputy Counsel to the President.
Mr. Chairman, he is recognized for his distinguished
scholarship and deep knowledge of regulatory and administrative
law by the American Bar Association. I do have to also say he
is a very smart man, who married a very smart woman, who is now
Associate Justice of the Michigan Supreme Court. So this is a
very talented family and very respected family.
I strongly support Dr. Croley's nomination and confirmation
as well as our other 2 nominees.
So thank you for letting me say hello from Michigan.
Mr. Croley. Thank you very much.
The Chairman. Very good. I saw a little bit of the
Michigan/Michigan State back and forth a week ago when I was
with Senator Stabenow. So you're lucky to have her in your
corner.
So let's at this point recognize each of you to make your
opening statements. When we do have a quorum which you could
probably tell we are feverishly working to produce, we'll vote
on the business matters and then come back to your nominations.
But we'll make your prepared statements a part of the
record in their entirety.
Why don't we just begin with you, Dr. Croley.
TESTIMONY OF STEVEN P. CROLEY, NOMINEE TO BE GENERAL COUNSEL,
DEPARTMENT OF ENERGY
Mr. Croley. Thank you. Chairman Wyden, Ranking Member
Murkowski, distinguished members of the committee, thank you
all very much for the opportunity to appear before you here
today. It is a great honor.
First I would like to thank President Obama for nominating
me to serve as General Counsel of the U.S. Department of
Energy. If confirmed I would work very hard to justify the
confidence he has placed in me for that role.
I would like also to thank Secretary Moniz for his
confidence too in asking me to serve as his counsel. I would be
privileged to advise him and his team as they work to ensure
the Nation's energy supply, to support our economic growth and
safeguard our national security.
I would also like to thank my wife, Bridget, who is here
this morning, my children Jack, Anna, Harry and Matt, my
parents Harold and Martha and my friends and colleagues for
their love, their support and their good example. Without the
encouragement of my family I would not be here today.
Mr. Chairman, as you know the General Counsel is the
principle legal officer of the Energy Department. The General
Counsel provides legal advice and counsel to the Secretary and
his colleagues, represents the Department before other Federal
agencies and works with the Department of Justice to represent
the Energy Department in the Federal courts. Fundamentally, the
General Counsel is responsible for ensuring that the Department
operates in full compliance with the law.
Of course, the General Counsel does not do these things
alone. The Department has a dedicated and knowledgeable staff
of attorneys. If confirmed I would look forward to working with
them, learning from them and drawing on their deep expertise.
As Senator Stabenow mentioned, I grew up in a small town in
mid-Michigan and attended college at the University of
Michigan. After graduation I attended the Yale Law School.
Following a judicial clerkship I graduated from the Graduate
School at Princeton University.
In 1993 I returned to my home State to join the faculty at
the University of Michigan Law School. I was subsequently
promoted to professor and later named the Harry Burns Hutchins
Collegiate Professor of Law.
From 2003 to 2006 I served as the Law School's Associate
Dean for Academic Affairs.
In 2010 I was elected in the American Law Institute.
I did not attend law school in order to become a scholar,
however, I always aspired to serve others and serve the public.
After earning tenure in 1998 I began representing
individual clients in various civil and criminal matters in
State and Federal court.
In 2006 I became a Special Assistant U.S. Attorney in the
Eastern District of Michigan.
Until 2010 I represented the United States in a wide
variety of affirmative and defensive civil litigation. It is an
experience that gave me invaluable insight into our Federal
courts. It was a great privilege to represent the interests of
the United States in court.
In 2010 I joined the Domestic Policy Counsel at the White
House where I served as Special Assistant to the President for
Justice and Regulatory Policy.
In 2011 I joined the Office of White House Counsel as
Senior Counsel to the President.
In 2012 I was named Deputy Counsel to the President.
As Deputy White House Counsel I managed a team of lawyers
to work on the full range of domestic legal issues. I have also
worked closely with the Department of Justice and the Office of
Management and Budget. Energy issues have been one of my own
areas of interest. My experience as Deputy White House Counsel
would serve me well in assisting Secretary Moniz and other
clients at the Department of Energy.
Having said all that no one does his or her best work
alone, at least I did not. I am a strong believer in team work.
If confirmed I would depend not only on my colleagues at the
Energy Department, but also seek opportunities to work closely
with this committee. I would strive to prove myself collegial,
pragmatic and tireless to you and your staffs.
Mr. Chairman, thank you again for the opportunity to appear
before you. I look forward to answering any questions.
[The prepared statement of Mr. Croley follows:]
Prepared Statement of Steven P. Croley, Nominee to be General Counsel,
Department of Energy
Chairman Wyden, Ranking Member Murkowski, distinguished Members of
the Committee, thank you all very much for the opportunity to appear
before you today. It is a great honor.
First, I would like to thank President Obama for nominating me to
serve as General Counsel of the U.S. Department of Energy. If
confirmed, I would work very hard to justify the confidence he has
placed in me to serve in that role.
I also want to thank Secretary Moniz, for his confidence too, in
asking me to serve as his counsel. I would be privileged to advise him
and his team as they work to ensure the Nation's energy supply, support
our economic growth, and safeguard our national security.
I would also like to thank my wife, Bridget, my children, Jack,
Anna, Harry, and Matt, my parents Harold and Martha, and my friends and
colleagues for their love, support, and good example. Without the
encouragement of my family, I would not be here today.
Mr. Chairman, as you know, the General Counsel is the principal
legal officer of the Energy Department. The General Counsel provides
legal advice and counsel to the Secretary and his colleagues,
represents the Department before other Federal agencies, and works with
the Department of Justice to represent the Energy Department in the
federal courts. Fundamentally, the General Counsel is responsible for
ensuring that the Department operates in full compliance with the law.
Of course, the General Counsel does not do all of this alone; the
Department has a dedicated and knowledgeable staff of attorneys. If
confirmed, I would look forward to working with them, learning from
them, and drawing on their deep expertise.
I grew up in a small town in mid-Michigan, and attended college at
the University of Michigan. After graduation, I attended the Yale Law
School. Then, following a judicial clerkship with the Honorable Stephen
F. Williams on the U.S. Court of Appeals for the District of Columbia
Circuit, I attended graduate school at Princeton University, where I
earned a Ph.D. in Politics. In 1993, I returned to my home State to
join the faculty at the University of Michigan Law School. I was
subsequently promoted to Professor, and later named the Harry Burns
Hutchins Collegiate Professor of Law. From 2003 to 2006, I served as
the Law School's Associate Dean for Academic Affairs. In 2010, I was
elected into the American Law Institute. In 2004, I received the
American Bar Association's award for Distinguished Scholarship in
Administrative Law.
I did not attend law school in order to become a scholar, however.
I always aspired to serve others, and serve the public. After earning
tenure in 1998, I began representing individual clients in various
civil and criminal matters in state and federal court. In 2006, I
became a Special Assistant U.S. Attorney in the Eastern District of
Michigan. Until 2010, I represented the United States in affirmative
and defensive civil litigation. Handling discovery, dispositive
motions, trials, and appeals in civil fraud cases, constitutional
cases, environmental matters, forfeiture claims, immigration cases, and
tort claims, among others, I gained invaluable litigation experience.
It was a great privilege to represent the interests of the United
States in court.
In 2010, I joined the Domestic Policy Council at the White House,
where I served as Special Assistant to the President for Justice and
Regulatory Policy. In 2011, I joined the Office of White House Counsel
as a Senior Counsel to the President. In 2012, I was named Deputy
Counsel to the President. As Deputy White House Counsel, I have managed
a team of lawyers who work on the full range of domestic legal issues.
I have also worked closely with the Department of Justice and the
Office of Management and Budget. Energy issues have been one of my own
areas of focus. My experience as Deputy White House Counsel would serve
me well in assisting Secretary Moniz and other clients at the
Department of Energy.
Yet, no one does his or her best work alone; at least I do not. I
am a strong believer in teamwork. If confirmed, I would not only depend
on my colleagues at the Department, but also seek opportunities to work
closely with this committee. I would strive to prove myself collegial,
pragmatic, and tireless to you and your staffs.
Mr. Chairman, thank you again for the opportunity to appear before
you. I look forward to answering any questions you may have.
The Chairman. Dr. Croley, thank you.
Mr. Smith.
TESTIMONY OF CHRISTOPHER SMITH, NOMINEE TO BE ASSISTANT
SECRETARY FOR FOSSIL ENERGY, DEPARTMENT OF ENERGY
Mr. Smith. Thank you, Chairman.
Chairman Wyden, Ranking Member Murkowski and members of the
committee, I appreciate this opportunity to appear before you
here today as President Obama's nominee for Assistant Secretary
for Fossil Energy at the United States Department of Energy.
I would like to begin my statement by expressing my
gratitude to the President for the confidence that he has
demonstrated in me in this nomination. I'm honored. Should I be
confirmed I will do my best to meet that confidence.
I would also like to thank Secretary Ernie Moniz for his
support and for his leadership of the Department of Energy.
I also thank my wife, Patricia and my children, Andrew and
Amanda. Their support and encouragement make it possible for me
to spend the long hours and do the hard work that's required to
serve the American people.
Finally, Mr. Chairman, I want to recognize my parents,
Raymond Clyde Smith, Jr., originally of Anderson, Texas and Sue
Ann Smith, originally of Belton, Texas, who are both here with
us this morning. I am sitting here today because of their
example and support throughout my life.
Mr. Chairman, growing up in Fort Worth, Texas, the son of a
veteran, I was taught early on the importance of duty and
service to my country. That led me to seek an appointment to
the United States Military Academy at West Point where I
studied engineering management and mechanical engineering. Upon
graduating from West Point I had the privilege of serving as an
army combat engineer in the second infantry division and the
25th infantry division.
I began my post military career in finance holding
positions with Citibank and with JP Morgan in New York City and
in London.
Working in England afforded me the opportunity to study at
Cambridge University where I received a Master of Business
Administration degree.
Subsequently I worked with Chevron where I was engaged in
business development and natural gas marketing. During this
time I lived for 3 years in Bogota, Columbia where I initiated
negotiations on the first ever gas pipeline between Columbia
and Venezuela.
In 2009, after 11 years in the oil and gas industry, I was
asked to serve as Deputy Assistant Secretary for oil and
natural gas in the Department of Energy's Office of Fossil
Energy. In this position I led the Department's oil and gas
programs including research and development, policy analysis
and liquefied natural gas import and export licensing.
This truly has been an eventful period in our Nation's
history with respect to domestic oil and gas development. In
2010 when the Deep Water Horizon oil spill occurred off the
coast of Louisiana in the Gulf of Mexico I was appointed as the
designated Federal official for the Commission that President
Obama established to investigate the root causes of that spill.
In addition I led the multi-agency effort to coordinate
research on the sustainable development of shale gas and tight
oil resources.
In February of this year, I was named Principle Deputy
Assistant Secretary for Fossil Energy. Since then I have also
served as the Acting Assistant Secretary managing the Office of
Fossil Energy's programs and day to day operations.
Mr. Chairman, we live in an exciting time. The development
of our Nation's energy resources is reaping benefits that were
not imagined just a few short years ago. We have before us an
opportunity to invest, to innovate, to create jobs and to
support energy security all the while addressing climate change
and reducing greenhouse gas emissions. Accomplishing this will
require us to harness all of our sources of domestic energy.
The Office of Fossil Energy has played and will continue to
play an important role in meeting that challenge.
I believe that my background, experience and commitment
have prepared me to lead the Office of Fossil Energy during
this particularly critical time. I welcome the opportunity to
continue my service to the Nation as Assistant Secretary.
If confirmed I pledge to work closely with this committee
and others in Congress to ensure that our Nation's abundant
energy resources are developed in a way that is sustainable and
will strengthen our economy.
Mr. Chairman, I thank you again for the opportunity to
appear before you here today. I look forward to answering any
questions that you or the committee may have.
Thank you.
[The prepared statement of Mr. Smith follows:]
Prepared Statement of Christopher Smith, Nominee to be Assistant
Secretary for Fossil Energy, Department of Energy
Chairman Wyden, Ranking Member Murkowski, members of the Committee:
I appreciate the opportunity to appear before you today as President
Obama's nominee for Assistant Secretary for Fossil Energy at the United
States Department of Energy.
I would like to begin my statement by expressing my gratitude to
the President for the confidence in me that he has demonstrated in this
nomination. I am honored, and--should I be confirmed--I will do my best
to meet that confidence.
I would also like to thank Secretary Moniz for his support and for
his leadership of the Department of Energy.
I also thank my wife, Patricia, and my children, Andrew and Amanda.
Their support and encouragement make it possible for me to spend the
long hours and do the hard work required to serve the American people.
And finally, Mr. Chairman, I want to recognize my parents, Mr.
Raymond Clyde Smith Jr, originally of Anderson, Texas, and Mrs. Sue Ann
Smith, originally of Belton Texas, who both are here this morning. I am
sitting here today because of their example and support throughout my
life.
Mr. Chairman, growing up in Fort Worth, Texas, the son of a
veteran, I was taught early on the importance of duty and service to my
country. That commitment to service and duty led me to seek an
appointment to the United States Military Academy at West Point, where
I studied engineering management and mechanicalengineering. Upon
graduating from West Point, I had the privilege of serving as an Army
combat engineer in the 2nd Infantry Division and the 25th Infantry
Division.
I began my post-military career in finance, holding positions with
Citibank and J.P. Morgan in New York City and London. Working in
England afforded me the opportunity to study at Cambridge University,
where I received a Master of Business Administration degree.
Subsequently, I accepted a position with Texaco (which was later
acquired by Chevron), where I was engaged in business development and
natural gas marketing. During this time, I worked for three years in
Latin America, where I initiated negotiations on the first-ever gas
pipeline between Colombia and Venezuela.
In 2009, after 11 years in the oil and gas industry, I was asked to
serve as Deputy Assistant Secretary for Oil and Natural Gas in the
Department of Energy's Office of Fossil Energy. In this position, I was
responsible for administering domestic and international oil and gas
programs, including research and development, policy analysis, and
liquefied natural gas import and export licensing.
This has been an eventful period with respect to domestic oil and
gas development. In 2010, when the Deepwater Horizon oil spill occurred
off the coast of Louisiana in the Gulf of Mexico, I was appointed as
the Designated Federal Official for the commission that President Obama
established to investigate the root causes of the spill. In addition, I
led the multi-agency effort to coordinate research on the sustainable
development of shale gas and tight oil resources.
In February of this year, I was named Principal Deputy Assistant
Secretary for Fossil Energy. Since then, I have also served as acting
Assistant Secretary, managing the Office of Fossil Energy's programs
and day-to-day operations.
Mr. Chairman, we live in an exciting time. The development of our
nation's energy resources is reaping benefits that were not imagined a
few short years ago. We have before us an opportunity to invest, to
innovate, to create jobs and support energy security, all the while
addressing climate change by reducing greenhouse gas emissions.
Accomplishing this will require us to harness all of our sources of
domestic energy. The Office of Fossil Energy has played--and will
continue to play--an important role in meeting that challenge.
I believe my background, experience and commitment have prepared me
to lead the Office of Fossil Energy during this particularly critical
time, and I welcome the opportunity to continue my service to the
nation as Assistant Secretary. If confirmed I pledge to work closely
with this committee and others in the Congress to ensure that our
nation's abundant energy resources are developed in a way that is
sustainable and that will strengthen our economy.
Mr. Chairman, thank you again for the opportunity to appear before
you today. I look forward to answering any questions you and the
committee may have.
The Chairman. Thank you very much, Mr. Smith.
We're calling some audibles here of colleagues in terms of
how we might have a quorum because we are now told that the
noon vote we were contemplating doing on the nominees off the
Floor. But it sounds like it's going to be a voice vote. So I
think if colleagues can stay another 5 minutes which should
allow us to hear from Ms. Kiaaina, then we could have a
decision one way or another about how to proceed.
So let's hear from our nominee and then for colleagues who
have been gracious enough to come and are juggling in 5 minutes
we'll announce how we're going to have our vote on our business
meeting.
Please.
TESTIMONY OF ESTHER P. KIAAINA, NOMINEE TO BE ASSISTANT
SECRETARY FOR INSULAR AREAS, DEPARTMENT OF THE INTERIOR
Ms. Kiaaina. Aloha Mai Kakou, Chairman Wyden, Ranking
Member Murkowski and committee members. It is an honor to be
before your committee as President Obama's nominee for
Assistant Secretary of Insular Affairs at the Department of the
Interior.
My name is Esther Puakele Kiaaina from Nanakuli, Oahu.
While my parents are originally from Hawaii I was born at the
U.S. Naval Hospital on the island of Guam as my father worked
for the U.S. Navy in a civilian capacity. My initial years were
spent in the village of Asan where I lived right across from
Asan Beach which was the location where the Third Marine
Division landed during the liberation of Guam from enemy forces
during World War II.
My family and I then moved to the village of Mangilao near
the University of Guam. I am a proud graduate of San Vicente
elementary and junior high school. These formative years were
some of the best years of my life.
I still remember with fondness and gratitude the guidance
and support of the School of Sisters of Notre Dame, who helped
to shape my views of the world. These nuns were Sister Mary
Bernard, Sister Mary Joseph, Sister Mary Juan, Sister Fidelis
and Sister Rosine. Si Yu'us Ma'ase sisters for all that you
have done for me.
They led me to believe that the world was full of
opportunities and allowed me to dream through our lessons on
U.S. history of visiting Washington, DC 1 day to learn about
what our founding fathers fought for and why democracy was so
important to our Nation and the world.
Apart from learning about Chamorro culture while growing up
on Guam, my family always had close ties to the Micronesian
community as my parents owned and operated a business that was
one of the larger employees of the Micronesian communities,
especially the Chuukese. Trying to eke out a living for
themselves or their families we felt our employee's challenges
and we felt their dreams and aspirations. I could not have
envisioned the opportunity of being here today to be considered
for a post that will oversee the coordination of Federal policy
and financial assistance toward the U.S. territories and freely
associated states and to give back to a region that has been so
good to me and my family.
Of course, I would not be here without the values of
respect and hard work of my parents and their sacrifice to send
me to Hawaii for high school, college in California and Japan
and graduate and law school in Washington, DC.
I was also fortunate to have a successful career on Capitol
Hill starting off as volunteer intern for Senator Daniel Inouye
then working my way up to Legislative Assistant for Senator
Daniel Akaka and Chief of Staff for Congressman Robert
Underwood and Ed Case. During my Congressional career I worked
specifically on issues for the U.S. territories and freely
associated states and worked with the Senate Energy and Natural
Resources and the House Resources Committees.
Laws or programs that I worked on included the Guam Land
Return Act, the Compact Impact Reimbursement Act, the Brown
Tree Snake Control and Eradication Act, the Guam War Claims
Review Commission Act, the Guam Foreign Investment Equity Act,
the inclusion of the territories in the new markets tax
initiative, the inclusion of Pacific Islanders, including
citizens of the freely associated states in the Gates
Millennium Scholarship program and the establishment of Asian
and Pacific Islander higher education serving institutions.
My current job as a First Deputy for Hawaii's Department of
Land and Natural Resources has also afforded me an opportunity
to better understand Hawaii's role in working with the insular
areas on collaborative efforts on issues such as climate
change, invasive species and coral reef protection. Most
recently we were pleased to sign on to the Majuro Declaration
which aims to intensify efforts to prepare for and adapt to the
intensifying impacts of climate change.
I believe I have a good understanding of the continuing
need to strengthen bilateral, Federal relationships with each
jurisdiction, promote economic development, increase government
efficiency and transparency, foster sound natural resources
management practices, advance alternative energy goals and
improve quality of life issues.
Finally, I have appreciated the opportunity to meet with
the members of this committee and their staff while I've been
in town and enjoyed discussing issues impacting these
jurisdictions including but not limited to economic
development, climate change, energy costs, immigration and
compact impacts and authorizing the financial agreement with
Palau. Should I be confirmed as Assistant Secretary for Insular
Affairs I commit to working to advance these issues in concert
with island leaders, the Congressional Committees of
jurisdiction, Interior's leadership team and other Federal
agencies.
I appreciate this opportunity to share my statement.
Mahalo Nui Loa.
I look forward to answering any questions.
[The prepared statement of Ms. Kiaaina follows:]
Prepared Statement of Esther P. Kiaaina, Nominee to be Assistant
Secretary for Insular Areas, Department of the Interior
Chairman Wyden, Ranking Member Murkowski, and Committee Members. It
is an honor to be before your committee as President Obama's nominee
for Assistant Secretary of Insular Areas at the Department of the
Interior.
I regret that my mother, due to health reasons, is unable to be
with me today, as well as my siblings who help to take care of her. I
know they are here in spirit. I am heartened to have my extended family
of friends from Hawaii, the Pacific, and Washington, D.C., here to
support me today.
My name is Esther Puakela Kia'aina from Nanakuli, Oahu. While my
parents are originally from Hawaii, I was born at the U.S. Naval
Hospital on the island of Guam as my father worked for the U.S. Navy in
a civilian capacity. My initial years were spent in the village of
Asan, where I lived right across from Asan Beach, which was the
location where the 3rd Marine Division landed during the liberation of
Guam from enemy forces during World War II.
My family and I then moved to the village of Mangilao near the
University of Guam. I am a proud graduate of San Vicente Elementary and
Junior High School. Those formative years were some of the best years
of my life. I still remember with fondness and gratitude the guidance
and support of the Franciscan nuns who helped to shape my views of the
world. These nuns were Sister Mary Bernard, Sister Mary Joseph, Sister
Mary Juan, Sister Fidelis, and Sister Rosine. Si Yu'us Ma'ase sisters
for all that you have done for me.
They led me to believe that the world was full of opportunities and
allowed me to dream-- through our lessons on U.S. history-- of visiting
Washington, D.C. one day to learn about what our founding fathers
fought for and why democracy was so important to our nation and the
world.
Apart from learning about Chamorro culture while growing up on
Guam, my family always had close ties to the Micronesian community as
my parents owned and operated a business that was one of the larger
employers for the Micronesian communities, especially the Chuukese.
Trying to eke out a living for themselves or their families, we felt
our employee's challenges and we felt their dreams and aspirations.
I could not have envisioned the opportunity of being here today to
be considered for a post that will oversee the coordination of federal
policy and financial assistance toward the U.S. territories and freely
associated states, and to give back to a region that has been so good
to me and my family.
Of course, I would not be here without the values of respect and
hard work of my parents and their sacrifice to send me to Hawaii for
high school, college in California and Japan, and graduate and law
school in Washington, D.C.
I was also fortunate to have a successful career on Capitol Hill,
starting off as a volunteer intern for Senator Daniel Inouye, then
working my way up to Legislative Assistant for Senator Daniel Akaka,
and Chief of Staff for Congressmen Robert Underwood and Ed Case.
During my Congressional career, I worked specifically on issues for
the U.S. Territories and Freely Associated States and worked with the
Senate Energy and Natural Resources and the House Resources Committees.
Laws or programs that I worked on included the: the Guam Land
Return Act, the Compact-Impact Reimbursement Act, the Brown Tree Snake
Control and Eradication Act, the Guam War Claims Review Commission Act,
the Guam Foreign Investment Equity Act, the inclusion of the
territories in the New Markets Tax Initiative, the inclusion of Pacific
Islanders, including citizens of the Freely Associated States, in the
Gates Millennium Scholarship Program, and the establishment of Asian
and Pacific Islander Higher Education Serving Institutions.
My current job as the First Deputy for Hawaii's Department of Land
and Natural Resources has also afforded me an opportunity to better
understand Hawaii's role in working with the insular areas on
collaborative efforts on issues such as climate change, invasive
species, and coral reef protection. Most recently, we were pleased to
sign on to the Majuro Declaration, which aims to intensify efforts to
prepare for, and adapt to, the intensifying impacts of climate change.
I believe I have a good understanding of the continuing need to
strengthen bilateral federal relationships with each jurisdiction,
promote economic development, increase government efficiency and
transparency, foster sound natural resources management practices,
advance alternative energy goals, and improve quality of life issues.
Finally, I have appreciated the opportunity to meet with the
Members of this committee and their staff while I've been in town, and
enjoyed discussing issues impacting the U.S. territories, and the
freely associated sates, including, but not limited to economic
development, climate change, energy costs, immigration and compact
impacts, and authorizing the financial agreement with Palau.
Should I be confirmed as Assistant Secretary for Insular Areas, I
commit to working to advance these issues in concert with island
leaders, the Congressional committees of jurisdiction, Interior's
leadership team, and other federal agencies.
I appreciate this opportunity to share my statement.
The Chairman. Thank you very much, Ms. Kiaaina.
I've now been advised by Senator Schatz that we've got it
right.
So Senator Landrieu would like to make a couple of quick
comments. We're one short for purposes of a quorum. With a
little luck we're going to vote momentarily.
So, Senator Landrieu.
STATEMENT OF HON. MARY LANDRIEU, U.S. SENATOR
FROM LOUISIANA
Senator Landrieu. Thank you, Mr. Chairman. I just want to
give my full support for these 3 nominees and they are highly
qualified. I know they'll bring great leadership for our
country and already have.
I just wanted to put one comment briefly in the record and
a full statement regarding Mr. Smith. His background and his
understanding of the really importance and promise of exports
of liquefied natural gas that help us to create jobs and
economic opportunity here at home in the United States and the
great promise of supporting this ongoing real and exciting
manufacturing renaissance that's happening in America.
In addition the benefit of influencing geopolitical
politics as America becomes not only more self sufficient with
our own energy, but an exporter of energy to other places to
countries that are--share our values and that are friendly with
us.
So I thank you for your support. It's very important to our
country. I look forward to working with you.
The Chairman. Thank you, Senator Landrieu.
Colleagues are being exceptionally patient. We think
Senator Manchin is on his way. We'll get a quorum.
Let me start with you if I might, Mr. Smith.
As you know you and I have talked about the idea that on
natural gas which is an American advantage. This is a red,
white and blue advantage for our country. We've got it. The
world wants it.
This is an opportunity to keep prices stable for our
businesses and our consumers. It's got a link to renewables
because natural gas has a chance to bring those renewables into
base load power. If we do it right we can have it all. We can
have a sweet spot.
Now to do it we've really got to understand a couple of key
kinds of issues. The first of which is I think we're going to
need accurate data in order to really measure the full impact
of these export applications. Now you all have been using
something called the NERA study put together by the Department
of Energy in its 2011 Energy Outlook.
That study was out of date at the time it was put out.
Those analyses that have been used by NERA are now two and a
half years old. At what point in time do you believe that the
NERA study is going to be out of date and not an adequate basis
for making judgments about export permits? Is it going to be 3
years, 4 years, 5 years? At what point do you believe that
study is out of date?
Mr. Smith. Thank you very much for that question, Senator
Wyden.
I understand your interest in this area. Certainly having
had the opportunity to appear before this committee in the past
we've had very good and I think, insightful guidance in terms
of our process in moving forward.
In terms of the studies and the data that we're using we
have a full commitment to ensure that at all times we're using
appropriate and relevant data to make our decisions. You
referenced the NERA study which was commissioned by the
Department of Energy that was delivered to DOE as part of the
orders that we've considered thus far.
The NERA study, I think it's important to realize is, it's
one of many inputs that we use. It's one of many pieces of data
that we're using on an ongoing basis.
So as Secretary Moniz committed when he was going through
his process and has spoken to publicly on a number of
occasions, it's our commitment to make sure that on an ongoing
basis we're constantly monitoring the market. We're always
looking at incoming data and that at all times, as we go
forward, we're using relevant, real time data to make sure that
we're making good prudence.
The Chairman. One other question for you and then I'm going
to yield to colleagues.
This has great implications for Oregonians, particularly on
the Oregon coast. But it's also become a national issue. You
and I have talked about it.
As you know in Southwestern Oregon in Coos Bay my
constituents are very excited about the prospect of Jordan Cove
LNG export facility being built. What the community leaders
have heard about, however, is something that's being discussed
nationally as well. That is the idea that there would be a
pause in the approval process, perhaps occurring before Jordan
Cove is considered, perhaps at another time.
You have been quoted recently as saying in effect that a
pause isn't necessary at this time. So as you can gather my
constituents are very interested in this issue. I think other
parts of the country are very interested in it as well.
So if you could set the record clear on this. Is the
Department of Energy planning to pause its approval process in
the next 6 months?
Mr. Smith. Thank you very much for that question, Senator.
So our process is to make sure that we continue to move
forward expeditiously on a case by case basis to make sure that
each one of these applications gets appropriate consideration.
This is actually linked to the last question that you asked
around use of data. On an ongoing basis we're constantly
looking at all the market signals, all the data that we have at
our disposal, to ensure that we're making good, real time
determinations.
So at this point our process is to continue to move
forward. We want to make sure we're using relevant information
for each of these cases. Our intent is to look at each of these
applications fairly with full consideration on a case by case
basis.
The Chairman. I'm going to give the rest of my time to my
colleagues. All of them are on a short schedule. Just know and
I saw it in Michigan when I was with Senator Stabenow, I think
there's an opportunity here for us to find the sweet spot where
we can give a big lift to American industries where we have a
pricing advantage, help our consumers, help renewables and be
able to export.
But No. 1 we're going to have to have good data, good and
current data.
Second on matters that are discussed in the media like
whether or not there's going to be a pause and under what
circumstance. We're going to need some more clarity on that.
So I look forward to working with you.
Senator Murkowski.
Senator Murkowski. Just to finish up that question. If--I
hear you saying, Mr. Smith, that you're going to be looking at
this case by case, not necessarily putting a pause. Will there
be an effort to again commission another macroeconomic study,
impact study, then on the affect of LNG exports.
Mr. Smith. Thank you for the question, Senator.
At all times we're always looking at what we're learning
from the market.
Senator Murkowski. Right.
Mr. Smith. What we're learning from market signals.
So should it be determined that there's been a fundamental
new data, new change in the market that would necessitate us
doing an additional study and that that would be necessary for
us to make sure that we're doing--making prudent decisions
consistent with our obligations under the statute, the
Department stands ready to do whatever we need to do.
Senator Murkowski. But you haven't determined at this point
in time that you've got to take that pause and conduct a
macroeconomic impact study?
Mr. Smith. We don't have, currently, a set plan at a
certain date to commission a study. But, however, as I
mentioned, we're evaluating that on an ongoing basis.
Senator Murkowski. Were you able to, during the shutdown,
were you still able to process the applications or move
through, even during the shutdown? Were you affected by that at
all?
Mr. Smith. Senator, as you know the shutdown was a, you
know, was a distraction. It impacted the entire department
because we wanted to make sure that we're moving forward.
Senator Murkowski. Right.
Mr. Smith. Consistent with the anti deficiency act and all
other statutes that we have to be cognizant of. So that was--
that impacted our ability to move forward.
But we have constantly been pushing forward. We're doing
our best to move forward expeditiously.
Senator Murkowski. OK.
Let me ask you a question, Dr. Croley.
It was, I guess it was just last week that DOE's Inspector
General issued this report stating that the Department has not
fully disclosed known concerns during an audit of ECOtality. So
we've just started to look into this matter.
But I want to ask if you are confirmed as General Counsel
and to the extent that you will be asked, will you be fully
transparent with the IG's office and fully responsive to all of
its concerns, not only relating to ECOtality, but any other
inquiries that may come your way with regards to an audit?
Mr. Croley. Yes, thank you, Senator.
If confirmed I would look forward to a very transparent and
cooperative relationship with the Department's Inspector
General.
Senator Murkowski. We would also expect then that you would
keep this committee informed upon our request as the matter
proceeds.
Mr. Croley. Yes.
Senator Murkowski. You're good with that. Thank you.
One more question to you and this relates to the Loan
Guarantee Program. I don't intend to re-litigate all of the
issues that are there. But contained in the 2005 Energy Policy
Act regarding subordination of debt there's been a lot of
discussion and debate about the provision that states the
obligation shall be subject to the condition that the
obligation is not subordinate to any other financing.
The whole issue of subordination of debt was of great
discussion. I guess I would ask if you felt that that was
ambiguous language in any way.
I think we want to--I am very concerned as we focus on the
Loan Guarantee Program. I'm a believer that there is an
important role for the Federal Government here. I want to make
sure that our Loan Guarantee Program is right.
So if there's some ambiguity within this language I'd like
to know whether or not we need to clear it up in any way.
Can you comment on that?
The Chairman. Could we do this?
Senator Murkowski is asking a very important question.
Something I'm interested in. With her indulgence if we could do
our short business meeting now and then come back to----
Senator Murkowski. Gives you time to think about it.
[Laughter.]
The Chairman. I want it understood that she's asking an
extremely important question. I care a great deal about as
well.
[RECESS]
The Chairman. I thank all of my colleagues for their
exceptional indulgence and courtesy. I hope that some can
participate in what I think will be an important discussion to
follow.
We now go to having Dr. Croley respond to Senator
Murkowski's important question that we held up so that we could
get the vote out. I do thank colleagues.
Senator Murkowski.
Senator Murkowski. Dr. Croley, you've not had a little bit
of time to think about the issue of subordination of debt.
Mr. Croley. Senator, you've raised the stakes.
[Laughter.]
Mr. Croley. I understand the issue that you are talking
about, first of all, Senator. I understand. I think I
appreciate the importance of that issue.
I myself have not studied the details of the statutory
language. I don't want to be reckless and commit to some view
when I haven't studied those details. But certainly the
language that you referenced, it seems fairly clear.
It's my understanding that the department is not currently
subordinating any debt. It's my understanding that the
Department has no plans to subordinate any debt.
If confirmed, I would be happy to work actively with your
staff and take a close, hard look at that issue. Again, I
understand here that protecting taxpayer interests have to be
paramount in our loan program.
Senator Murkowski. Thank you for that general statement.
Again, we do want to ensure that within the language of the
statutes that there is no ambiguity. If we think that we're
putting into law clear and unequivocal reading that would
clearly state that there will be no subordination debt we
anticipate that it will be viewed that way.
So if you do, after consideration of this language, think
that there is some need to address this in some way, I would
certainly be appreciated if you could get back to us.
Mr. Croley. You can count on it.
Senator Murkowski. Then a question to you, Ms. Kiaaina.
This relates to the Palau offset.
We have been, the chairman and I, have been working with
some in the Administration to find a path forward in terms of
an offset for the 2010 agreement that extends the financial
assistance to Palau under the compact of free association.
Two questions here.
First, if you will commit to working with the committee as
we try to find areas of offset.
Probably from a broader perspective, how important do you
feel this agreement is that we honor the compact of free
association with Palau?
Ms. Kiaaina. Thank you so much for your question, Senator.
Let me answer your second question first with regard to the
overall agreement. The Administration through the Secretaries
of Interior, Defense and State have indicated strong support
for this bilateral, financial agreement. So it is a priority.
Should I be confirmed I commit to working with this
committee to find viable offsets. I think that we all know that
with the new budgetary rules of finding an offset for financing
packages is very critical. So I do commit to working with the
committees of jurisdiction and to navigate within the
Administration to work collaboratively on a viable offset.
Senator Murkowski. Thank you.
I know that this is an issue that I think the chairman and
I share concerns. It's important that we honor our compacts. As
we deal with budget issues we appreciate the difficulties. But
we're also very aware that not only is it important to honor
the contract, but a recognition that others are looking to the
United States to see how we are ensuring that that compact is
addressed and fully honored.
So it's something that we'd like to work with you on. I
appreciate your willingness.
Ms. Kiaaina. Absolutely, Senator.
Senator Murkowski. Thank you, Mr. Chairman.
The Chairman. Thank you very much.
Let's go to Senator Schatz. Senator Schatz and Senator
Heinrich and Cantwell all have been waiting a long time.
So, no questions? Neither of you?
Alright.
Senator Cantwell.
Senator Cantwell. Thank you, Mr. Chairman.
I certainly want to applaud the nominees and congratulate
you on your nomination.
If I could to you, Dr. Croley.
Obviously the Bonneville Power Administration is a very
important part of the Pacific Northwest. I want to make sure
that I get your response as counsel there to some important
issues.
First, will you respect the regional control of BPA as
Congress has repeatedly affirmed?
Mr. Croley. Yes.
Senator Cantwell. OK.
Will you take an expansionist view of DOE's statutory
authority regarding BPA?
Mr. Croley. Senator, I recognize the importance of BPA and
its special status within the department. I wouldn't take an
expansionist view. I would be faithful to the statute and to
the understanding between BPA and to the department.
Senator Cantwell. Thank you.
Do you agree that BPA Administrator needs to be a direct
supervisor of BPA's General Counsel to keep authority and
responsibility and alignment?
Mr. Croley. My understanding is that the administrator is
the supervisor of the general counsel. That the Department's
General Counsel stands ready to provide assistance and support
but certainly not to micromanage the BPA General Counsel or to
manage day to day affairs of that Counsel's office.
Senator Cantwell. OK.
I see a little daylight in that answer. I just want to be
clear that this is a regional organization. I don't know, Mr.
Chairman, maybe we need to go to the TVA approach. But this is,
the Northwest, the Pacific Northwest, is not going to tolerate
any attack on BPA's regional authority.
So the issue has arisen obviously because of some of the
practice hirings and investigation that after 6 months they'll
be a review of these efforts. Do you agree that restoring BPA's
traditional autonomy unless there are very specific concerns
raised is important part of the process?
Mr. Croley. Yes, Senator.
Senator Cantwell. Good.
Mr. Croley. My understanding is that there will be a
tentative review at some point. I'm not exactly sure when that
is. I think 6 months or something along those lines. At that
time it will be appropriate to figure out how the department
can be supportive.
But I want to emphasize, in case I was in artful. I fully
appreciate BPA's autonomy. It's my understanding the department
has no interest in affecting adversely that autonomy but rather
simply to provide a kind of support, to the extent that's
necessary and to the extent that may be necessary in the future
and it may not be.
Senator Cantwell. I don't know if I agreed with all of that
statement because various attempts, whether they're purposely
or just in artfully DOE sometimes tries to propose ideas like
regional transmission organizations that would artificially
raise the rates of utility payers in the Northwest. Our answer
is always no or the Administration is coming and try to take
the money to offset the budget deficit and the Pacific
Northwest answer is no.
Anyway, so it's--I don't know, I think it comes with the
territory or for this committee or being a member of the
Pacific Northwest, so you just have to continue to fight off
new people who come and think that BPA is something other than
a regional organization.
But I thank you for those answers. I'm sorry that I don't
have any easy questions for you because now I'd like to turn to
DOE policy as it--and the ability to separate defense waste
from civilian waste.
So, one I want to work with the chairman and the secretary
to separate defense from civilian waste. We are on a trajectory
where we're going to have defense waste ready to go somewhere.
We don't want to have that be nowhere because we haven't come
up with a solution.
So will you commit to working with me and DOE and the
Chairman on separating defense from civilian waste?
Mr. Croley. Senator, I would be happy, if confirmed, to
work with you on that issue and any other issue.
My own understanding about that which is somewhat limited
is that there's a study ongoing that Secretary Moniz has
initiated. My understanding is that that study is not complete.
But certainly on the legal side I would eagerly work with you
and him and the chairman on that.
Senator Cantwell. Do you see any legal barriers that would
prohibit us from looking at something like, you know, salt as a
possibility or looking at something? Are there any legal
barriers that you know of?
Mr. Croley. Not that I know of, Senator, though I haven't
studied that issue in detail.
Senator Cantwell. OK.
Alright, I thank the Chairman. Thank you so much.
The Chairman. Dr. Croley, let me just reaffirm the
extraordinarily important points that Senator Cantwell has
made. I think you know she has been our go-to person in the
region on energy policy issues. I want to echo her points.
I think you're probably aware that last week the entire
Northwest delegation, 23 members, Senators and House members,
sent a letter to you all, to Dr. Moniz, trying to make it clear
that we feel very strongly that this problem of discriminating
against veterans is absolutely indefensible. That it cannot be
used as a Trojan horse to, in effect, micromanage Bonneville
from Washington, DC.
I talked to Dr. Moniz about this. He reassured me that the
agency was not going to be part of any effort to micromanage
Bonneville from Washington, DC, from the Forrestal Building,
and that we would be getting a letter in writing this week. So
the Northwest Congressional Delegation looks forward to having
that written confirmation to us with respect to the delegation
letter that was sent last week.
On the second point that Senator Cantwell made, with
respect to defense and civilian waste. You all are doing a
study is what you said to Senator Cantwell. My message to the
Department is speed it up because we are very interested in
getting this issue resolved. Colleagues are talking about how
to proceed on this issue.
So please take back to the Department we're glad you're
doing the study, but we really need your foot to the pedal and
speed it up because Senator Cantwell and I and our constituents
are very committed to getting this right and addressing the
separation question which we back.
So I thank Senator Cantwell for very important points as
usual.
Senator Schatz was here before Senator Portman.
OK, Senator Portman.
Thank you, Senator Schatz.
Senator Portman. Thank you, Senator Schatz.
Thank you, Mr. Chairman.
Mr. Smith, good to have you before the committee though
you're likely to be before the committee many times in the
future. I know you're taking on an important job. If you're
confirmed as Assistant Secretary of Fossil Energy you're going
to have a lot responsibilities that are important to my State
of Ohio.
We're a big coal State, natural gasSstate now, oil State.
We also have a lot manufacturers who care a lot about these
issues.
One is carbon capture and sequestration technologies. You
will be responsible for overseeing that for the Administration,
if you're confirmed. If this carbon capture and sequestration
technology can be proven to be commercially viable it could
dramatically reduce future carbon dioxide emissions, as you
know, from coal and natural gas power plants and large
industrial users.
I have long been concerned by the Administration's
inability to demonstrate that it's got an effective plan in
place to develop this technology. I introduced draft
legislation last year and actually had an amendment passed in
this committee last year which would have required DOE to
conduct an annual assessment of existing Federal programs
supporting CCS that included a detailed description of where
your existing programs are, an assessment of which programs
have been successful to date in advancing the technology, an
assessment of the estimated timeframe and the cost needed to
get the technology to the commercial level.
Again, it was reported out of this committee. But it wasn't
signed into law. I think it is more important now than ever for
policymakers here on the Hill to have this, best available
data, available on CCS given that EPA has now mandated that CCS
be installed on all of our new coal fired power plants. We have
a lot of them in Ohio.
They're already under siege. In fact we're shutting down
about a dozen of them right now in our State largely because of
EPA regulations.
So my question to you is if you are confirmed would you be
willing to provide this committee a detailed report on DOE's
existing CCS programs that includes an assessment of the
success of any new programs, assessment of the estimated
timeframe, estimated cost to get this important CCS technology
to commercial viability?
Mr. Smith. Thank you for that question, Senator.
I certainly, very personally, understand the importance of
the development of this technology for the entire United
States, for the whole Nation and particularly for the State of
Ohio. Certainly if I am confirmed by this committee and go into
the role as Assistant Secretary I'd be happy to work with the
committee to bring full transparency to our technology
programs.
That's something we're proud of. We've invested over $6
billion over the course of last several years in developing
carbon capture and sequestration, lower the cost and make sure
that we're putting into place all the understanding of the
risks and the procedures necessary to store CO2 in
geologic formations and through enhanced oil recovery.
So I'd be happy to work with you.
Senator Portman. Thank you.
I guess, Mr. Smith, what I'm looking for is not just full
transparency on what's been done, but your projections as to
what the timeframe is and what the cost is going forward to
bring it, again, so that it--to the commercially viability
stage. Would you be willing to do that as well?
Mr. Smith. Indeed, Senator. I would be happy to work with
you.
Senator Portman. We'd appreciate that.
To Mr. Croley and Mr. Smith, as you may know I've
introduced bipartisan legislation here on permitting. Senator
McCaskill, Enzi, Donnelly, Barrasso and I introduced a bill
that streamlines the process of Federal permitting. It actually
establishes a Federal chief permitting officer to oversee
permitting processes, designates a lead agency every time to
coordinate because one of the problems we have is the left hand
doesn't know what the right hand is doing sometimes and ensure
timely and concurrent reviews.
As you know some energy projects might have over 30 Federal
permits, we are told and also the implementation of an online
dashboard so that the public can hold agencies accountable for
meeting the deadlines that are set on permitting.
There's a study that's done every year. I think it's by the
IMF. It has to do with the ease of doing business.
The United States just keeps falling further behind in
terms of permitting. We're now number 17 in the world in terms
of permitting. It's affecting a lot of great projects,
including energy projects in my State of Ohio, a hydropower
plant for instance on the Ohio River.
The permitting makes it impossible to move forward
sometimes because investors aren't willing to make a commitment
without any certainty on the permitting.
So my question to you is what permitting reforms do you
believe are necessary in the energy area including, Mr. Smith,
in the CCS area? What reforms are you willing to support to
ensure that projects receive thorough review but are not
needlessly delayed due to bureaucratic red tape. Again,
regulations that are not concurrent, permitting requirements
that are not concurrent, but instead unnecessarily delayed
projects?
Mr. Croley. Sure, Senator. Thank you for the question.
I--it's something that, if confirmed, I would love to work
with you and your staff on. I know that permitting and
streamlining permitting in particular is something that the
Administration has focused on as well across the government. I
would be eager to educate myself with respect to the specific
legislation that you're talking about.
But certainly the underlying problem of unnecessary or
overlapping or excessively complex permitting is something in
principle that we should work on. Again, I would defer to the
policymakers at the Energy Department, but I would stand ready
to work with you on those legal issues. I recognize the problem
that you're identifying.
Senator Portman. I think DOE plays a big role here. You're
not the biggest permitting agency, but you are an agency that
has the policy responsibility. We're happy to get you the
details of not just our legislation, but some of the background
to it, some of the research we've done. Also the statements of
the AFLCIO building trades folks and the chamber of commerce.
I mean it's an issue where you really have a lot of people
coming together realizing that we can't be competitive until we
deal with this.
Mr. Smith, any comments?
Mr. Smith. I just concur with Dr. Croley's observations
there. We don't have a direct regulatory role, but we certainly
have to work with our other Federal agencies and work with
Congress. So if confirmed into this role as Assistant
Secretary, I'd be--I'd look forward to working with our other
agencies and working with this committee to ensure that we're
working together in a way that's efficient.
Senator Portman. Thank you, Mr. Chairman.
Thank you, Gentlemen.
The Chairman. Thank you, Senator Portman.
Senator Franken has been shuttling back and forth between
Committees. Let's recognize him.
Senator Franken. Thank you, Mr. Chairman.
Thank all the witnesses.
Mr. Smith, although the technology to do carbon capture and
sequestration with coal fired power plants has been shown to
work there are major challenges to scaling up these processes
and making them commercially viable.
One of the economic challenges that have prevented coal
power plants from adopting carbon capture and sequestration and
how would you work as Assistant Secretary to address them?
Mr. Smith. Thank you, Senator, for that question.
Certainly the challenge of capturing CO2 out of
our coal fired power fleet, out of our entire power fleet, is
very important for us and that's where we're focusing our
efforts.
At the Department of Energy we've got 2 major goals in
terms of carbon capture and sequestration.
The first is moving forward technology to reduce the cost
of capture.
The second is to move forward with the understanding of
issues around long term storage either in saline aquifers or
through beneficial uses such as enhanced oil recovery.
So if I'm confirmed as Assistant Secretary I'd commit to
working with this committee and working within DOE to continue
to move along those 2 lines and get more large scale
demonstrations put in place and advance the deployment of the
technology.
Senator Franken. It seems to me this is an extremely
important issue because we see--for us to do the research and
development and the scaling up of this capture and
sequestration. You see that China and India are burning coal.
The world has a lot of coal.
It's going to be burnt, a lot of it. If we--Ms. Kiaaina
talked about global warming in her climate change in her
testimony. It seems like this is a very important technology
that we have to do all the research and--that we have to do a
lot of the research and development on. The funding of that is
an issue.
One possible model for funding research in this area is the
way we fund ultra deep water drilling research. This program is
funded through rents, royalties and bonuses from Federal
offshore oil and gas leases. Can you talk about the success of
that program and whether this model could be used in other
sectors such as CCS?
Mr. Smith. Thank you very much for the question, Senator.
First of all we fully appreciate the challenge before us in
terms of development of these technologies and we've made
historic investments over the course of the last few years in
terms of carbon capture and sequestration development, research
and development.
Section 999 of the Energy Policy Act of 2005 created a
royalty trust fund that was--that came from producers who
produce on public lands. That goes from the Department of the
Interior to the Department of Energy and we've used that to
sponsor research and development on onshore oil and gas
development and ultra deep water. We've got a program for to
assist small producers.
So that's one mechanism that the Department has used to
fund the important research and development projects that need
to be undertaken. If confirmed into this role I'd look forward
to working with this committee and working with Congress in
general to devise ways to efficiently fund the technologies
that need to be developed.
Senator Franken. I just think this is an incredibly
important area as we've discussed in this committee what the
exploration of natural gas has done and how that came out of
research from the Department of Energy and financing from the
Department of Energy.
I want to turn to from carbon capture to carbon conversion.
You--some have demonstrations of turning carbon dioxide to use
it as a feed stock for algae, to grow algae which can be used
as a biofuel in turn.
Another application is turning it into a solid, calcium
carbonate, and then using it in cement production.
The challenge we face is this is still expensive. Can you
tell me what will you do to support the commercialization of
technologies to capture carbon and convert it for beneficial
use?
Mr. Smith. Thank you very much for the question, Senator.
The most direct and I think the most relevant utilization
of CO2 right now is using it for enhanced oil
recovery. So you take CO2 you use it in depleted oil
fields and it allows you to recover oil that would not have
been recovered otherwise which allows you to reduce our
Nation's dependence on imports. In fact just in the month of
October for the first time the United States is importing--is
producing more oil than it imports. That's for the first time
since, I think, 1995.
So EOR helps us take steps in that direction where it's
positive for energy security.
We also have programs within the National Energy Technology
Laboratory. They are looking at a catalyst to take
CO2 and turn it into other beneficial uses. A
challenge with CO2 is it's a very stable molecule.
It wants to stay as CO2 essentially.
So the other challenge that we have is that there are just
tremendous, huge quantities of CO2 that need to be
captured and stored.
So we're looking at technologies that would be able to make
some beneficial use of some portion of that CO2 that
would also create revenues that might offset some of the other
costs that are incurred.
So if confirmed into this position I'd look forward to
continuing to push those programs and find good solutions.
Senator Franken. Mr. Chairman, would it be OK if I asked
one more question----
The Chairman. Of course. I'm sure my colleagues are fine
with that.
Senator Franken. I think I've been a stellar member today.
I was here early.
The Chairman. Not just today, but all the time. I think
particular----
Senator Franken. I wasn't fishing for that, but----
The Chairman. I think the point Senator Franken is making
with respect to the nature of what government can do in the
research field and what's it's done in the past is a very valid
one. I appreciate him making it.
Senator Franken. Thank you.
Look, we have this real problem. Ms. Kiaaina, you referred
to it in your testimony which is about climate change. So part
of what you look at is the--and what you've been involved with
is the Pacific and the South Pacific. I was wondering about the
issues of coral reef protection.
I'm really concerned what climate change is doing to our
ecosystems.
For example, you know, warmer air and ocean surface
temperatures are impacting--they're impacting storms. They're
impacting the acidity of the ocean, I know is increased. It's
altering the coral reef communities and our production of fish
and of crustaceans. So we're seeing these bleaching events.
Can you talk about the impacts? How these impacts affect
corals and the many organisms that use coral reefs as habitat?
Ms. Kiaaina. Thank you, Senator, for that question.
In my current capacity at the Department of Land and
Natural Resources we like to utilize traditional practices by
native Hawaiians whereby the manner of how we steward our
natural resources takes into account our practices from the
mountain to the sea. It's called the Maku'u Ahupua'a or
Ahupua'a system. So clearly while there are a lot of
environmental issues that could be traced to the degradation of
our coral reefs. A lot also has to do with the practices of
what is happening in our forests above.
So we do like to take a comprehensive approach. While we do
have specialists in our division of aquatic resources that--who
spend countless hours looking into the research of why our
coral reefs have declined. We also insure that we're looking
toward--one of our priorities at the moment is protection of
our watersheds because we believe that our watersheds is not
only important to securing safe drinking water, but it's
important because it does impact with the reforestation of
native species, removal of ungulates and removal of invasive
species that actually could have a bearing on climate change
and also to help safeguard the resources.
So by the time it affects, it goes down to the sea, it is
not as bad. Most recently we had a molasses spill, remarkably
in Honolulu harbor that was very devastating. Most devastating
was to our coral reefs as well as to all of the fish habitat
that live there. That's something that we're working with the
shipping company who is responsible for that to ensure that it
doesn't happen again.
So I would say that apart from necessary research that we
have to undertake to help to preserve our coral reefs we also
have to have the strongest environmental compliance laws on the
books both within the State of Hawaii as well as the Federal
Government. I am pleased to report that Hawaii does have one of
the strictest compliance environmental laws in the Nation. So
very often we have enforcement mechanisms to deal with these
kinds of issues at the State level, but we welcome working with
our Federal partners to ensure that we do everything possible
to protect and safeguard our environment.
Senator Franken. I'm sorry, but I guess I was talking about
more of a macro look at this in terms of our, what the planet.
What's going on with the planet in terms of the acidification
of the oceans and how that is affecting the coral reefs?
I've completely used up my time and others, so.
Ms. Kiaaina. Sure, Senator. I just would like to say I
guess I would say that we believe that everything is
interrelated.
Senator Franken. Of course.
Ms. Kiaaina. That we are in an environment where what we do
in Hawaii is interrelated to the environment in the whole
Pacific and globally. For some of these critical issues that
you have raised, we cannot do it on our own or within a region.
It has to be done comprehensively with other countries in the
world.
Senator Franken. Thank you.
Thank you, Mr. Chairman, for your indulgence.
Thank you, Senator Barrasso, for your patience.
The Chairman. Senator Barrasso.
Senator Barrasso. Thank you very much, Mr. Chairman.
Mr. Chairman, last Friday President Obama gave a speech
about American exports. The President stated that one of the
things that we should be focused on is helping more businesses
sell more products to the rest of the world. He explained that
exports are one of the brightest spots in the economy and that
every $1 billion in exports supports nearly 5 thousand jobs.
These are great things to say. But they belie the actions
of this Administration. Mr. Chairman, while I'm here to
congratulate all the 3 nominees, I have a couple questions
related specifically for the Department of Energy because I
look at liquefied natural gas exports as a concern.
Currently countries from around the world want to buy LNG
from the United States. These countries are imploring this
Administration to act on the export applications that are
currently pending for LNG. Over the last two and a half years
the Department of Energy has acted on only 4 applications to
export LNG to countries which do not have free trade agreements
with the U.S.
Meanwhile the current Department of Energy is sitting on 20
pending applications. Global demand is limited. The time to act
is now.
So, Mr. Smith, my question is help us understand, if you're
on the committee, the delay in processing these applications.
Is the delay coming from inside or outside of the Department of
Energy? Is it coming from the White House?
I'm just trying to figure out where the bottleneck is.
Mr. Smith. Thank you very much for that question, Senator.
First of all, we certainly share your interest in the topic
and with the possibility of the promise, the opportunity to
create jobs and to do positive things for our economy.
In terms of moving forward on LNG export applications, as
you mentioned, we've evaluated--we've made orders on 4
applications thus far. All 4 applications that we've issued
orders on we've approved.
As Secretary Moniz has stated when he came before this
committee, our job is to move forward as expeditiously as
possible, but while also showing the care that's mandated by
the statute, by the Natural Gas Act. So it's our intention to
continue to move expeditiously to evaluate each of these
applications on a case by case basis.
If confirmed into this role I'd look forward to working
with you and with this committee.
Senator Barrasso. That's encouraging because like I asked
the question if confirmed what steps will you take to reduce
some of these delays so that expeditiously means faster than
it's currently going?
Mr. Smith. Yes, well, thanks for that question, Senator.
Certainly I would not characterize our process as having
been delayed. If I look at the requirements that are upon us
under statute, in fact, that we are moving into an
unprecedented area, it's incumbent on the Department of Energy
to make sure that we're considering all stakeholders. Certainly
there are some stakeholders who would want us to move faster
and there's some stakeholders who'd want us not to export LNG
at all.
So it's our job to make sure that we're making good,
prudent decisions that are consistent with the public interest
and that withstands scrutiny. We'd look forward to moving
forward in that way.
Senator Barrasso. On Tuesday I sent the Secretary,
Secretary Moniz, a letter in support of the Jordan Cove LNG
export terminal. Unlike any other proposed export facility the
Jordan Cove would really provide Rocky Mountain States, as well
as the Indian tribes, access to international markets.
Jordan Cove would enable states like Colorado, Wyoming, the
Indian tribes such as the Ute Indian tribe to sell natural gas
to customers in Asia, who are very interested in buying this.
Rocky Mountain States and Indian tribes depend heavily on
natural gas production to fund basic government services like K
through 12 education, roads, bridges, water/sewer systems, all
related to the revenue from this LNG.
Natural gas production also provides income to many of the
families in our states. Puts food on the table. Keeps the heat
on. Pays for, you know, the necessities, clothing, impacts the
quality of life.
The Nation's supply of natural gas is expected to exceed
our domestic demand. So companies are already canceling natural
gas projects. They're generating fewer jobs in our communities
and less revenue to local and State governments. The
communities are going to need access to international markets
if they're going to continue to thrive.
So this is why I think the DOE must expeditiously and we're
back on that word, review and act on LNG export applications.
So I just ask, you know, if you appreciate the importance
of these exports to communities that produce natural gas such
as the Rocky Mountain States and on our Indian reservations for
the tribes.
Mr. Smith. I certainly do, Senator.
Senator Barrasso. I'd like to discuss a little bit on
carbon capture and sequestration technology. I know Senator
Franken was discussing that as well with you previously.
In September EPA issued a proposed rule governing
greenhouse gas emissions for new power plants. The EPA's rule
affectively requires new coal fired power plants to deploy
carbon capture and sequestration technology. However, the
technology isn't currently and may never be commercially and
economically viable.
Last month your predecessor, Charles McConnell, testified
about carbon capture and storage technology before the House of
Representatives. His statement was, the cost of current
CO2 capture technology is much too high, he said, to
be commercially viable.
He explained that technology exists for separation and
capture of CO2 at the plant, but it increases the
cost of generating electricity, he said, by about 80 percent.
Of course, those are costs the consumers then would have to
bear.
Finally he noted that affordable solutions may be decades
away with the current level of funding.
So the question is given the State of this technology is it
reasonable for the EPA to effectively require this technology
for all new coal fired power plants?
Mr. Smith. Thank you for the question, Senator.
We're clearly not the regulatory agency.
Senator Barrasso. Yes.
Mr. Smith. I've not seen the transcript of anything my
predecessor might have said so I can't comment in detail on
what we might have commented or on the regulatory process which
is the responsibility of the Environmental Protection Agency.
What I will say is that these basic technologies aren't
new. The North Dakota/Great Plains Project has been capturing
CO2 for over a decade. There are 12 large commercial
scale projects that are in development or are operating around
the world.
The Administration has committed over $6 billion over the
last several years on carbon capture and sequestration. We've
seen development projects in operation and being built
currently in real times. So my job, if confirmed into this
role, would be to continue to push the technologies, continue
to lower the cost of capture and continue to realize the
importance of this particular technology to ensure that coal is
part of the clean energy economy of the future.
Senator Barrasso. I appreciate that because I look at this
to be Assistant Secretary of Fossil Energy for the Department
of Energy. It does seem the Administration, if it's concerned
as you point out in the importance of this, about investment. I
just wonder why the Administration has dramatically reduced its
annual budget request for programs that actually develop this
technology.
I know you weren't the person that put the budget into
place or made that request. But I'm just wondering about the
commitment of the Administration based on its budgeting
requests when what you're stating is something that heads a
little bit in the other direction.
Mr. Smith. Thanks, Senator.
But--I mean over the start of the Administration we've
committed $6 billion which has been a historic investment in
CCS R and D and demonstrations. The Department has just
released an $8 billion loan guarantee program that could be
used through the suite of opportunities for fossil energy
including carbon capture and sequestration. We're continuing to
work with our partners in industry and in academia to push this
technology forward.
So these challenges are difficult. They're challenging.
They require us to work with industry and with academia. If
confirmed in this role I'd commit to working with you and with
Congress and with other agencies to make sure that we are
pushing to achieve the milestones that we need to meet.
Senator Barrasso. Thank you.
Again, congratulations to each and every one of you and
thank you, Mr. Chairman.
The Chairman. Thank you, Senator Barrasso.
Just by way of engaging briefly on this natural gas issue
because I think you know I'm very interested in working closely
with you and Senator Murkowski. Because it's my view that, you
know, we Americans, especially we, Westerners, we're always
interested in trying to have it all. You know, we want to be
able to have the advantage for our consumers and our
businesses.
We've got it. The world wants it. I mean, this is advantage
America. It's been my view that if we tee this up right we can
have all of those benefits including benefits for renewables
because natural gas is a clear connection to solar and wind for
purposes of getting those renewables into base load power.
I think part of what we're starting to see emerge is the
challenge of dealing with specific areas of the country. You
know, when I was in Alaska and Senator Murkowski and I were
talking about the interest in Cooks Inlet in terms of exporting
natural gas. If they don't get to export natural gas, unless
I'm missing something, it's stranded.
I mean, nobody is going to get hurt in the lower 48. The
only people that would get hurt would be, in effect, you know,
Alaskans.
On the Jordan Cove issue we have a different kind of
challenge. Of course, I'm very interested in my constituents in
a part of the State that's just been clobbered over the years
economically with changes in natural resource policies. Having
the opportunity to be considered--one of the advantages for
Jordan Cove beyond the fact that it's just the only West Coast
one in consideration is the company has said the facility will
export primarily Canadian liquefied natural gas. That's what's
on their web site. That's what they've been talking about.
So that presents again, an opportunity that you're not
going to be displacing gas that would be going to hard hit
companies or trying to get an advantage in tough global
markets.
So my sense is we're all going to be working on this in a
joint way. I think Mr. Smith was helpful today on the pause
issue because you know there's been a lot of discussion where
people on all sides of this issue have just been trying to
figure out what the Administration's position was on the pause
issue. Mr. Smith clarified that essentially we were going to
stay in the case by case kind of approach which is what Dr.
Moniz had assured me of.
So I thank my colleagues for wanting to work on this in a
collegial and bipartisan way. Sometimes the more you learn
about natural gas exports, sometimes the less you think you
know because it is a complicated issue. My sense is if we do it
right we can have it all.
If the Senator from Wyoming wants to comment that's fine.
Senator Barrasso. I appreciate your efforts, Mr. Chairman.
You've been terrific in working to accomplish this. I think
over the life of the project, of the one that we've just
discussed, over the length of the project it would be about an
equal amount from the Rockies as well as from Canada.
Of course we have great concerns for the communities and
the quality of life of the people that work there. These are
excellent jobs, great benefits and contribute to places where
in many other ways they're not able to economically develop all
the other resources. It's often a long distance if they try to
manufacture and transport manufactured products and so that
these are opportunities for communities that may have limited
opportunities.
So I appreciate your efforts. Thank you, Mr. Chairman.
The Chairman. We are going to pursue this together. Senator
Murkowski and I probably devoted more time to kicking around
the various iterations as this debate on natural gas is going
to continue. I think so far the Administration has kept its
pledge and sort of, grudgingly, all sides seem to have been
able to live with it. They're going case by case. They're
looking at the cumulative effects.
We're going to continue the discussion.
Let me turn briefly to another topic that you and I talked
about in the office, Mr. Smith. That's the question of crude
exports. I'd like to ask you the question because, as you know,
and we discussed, there is considerable amounts of discussion
about whether the Congress ought to be having a debate about
lifting or relaxing the ban on crude exports.
I'm going to ask you this question recognizing that from a
purely legal standpoint, the authority here lies with the
Department of Commerce. But I think it's very clear that when
you're talking about position in fossil energy and the
Department of Energy, your views are going to be solicited on
this matter. People are going to be talking about this in the
Administration.
I think it would very helpful for purposes of just getting
your sense of what factors the Congress should focus on in this
debate about exports? What I said and indicated to you when we
talked about it in the office, to me the debate really rivets
on the impact of lifting the ban on consumers. That's what is
really my bottom line.
I mean, what we've talked about, Senator Murkowski and I,
from the very beginning, is we were going to make sure that
consumers were front and center in this whole debate about the
future of energy policy. I know this is a challenging issue. I
would just be interested in your giving us your take because
you're going to be in the fossil energy business when
confirmed.
What are the factors or potential pitfalls and benefits you
think we ought to be looking at?
Mr. Smith. Thank you, Senator, for that question.
As we discussed when I had the opportunity to speak with
you in your office, this is an exciting time for domestic
energy production across the board.
Back in 2011 the President set the ambitious goal of
reducing imports by a third over the next decade. Indeed we've
already made tremendous progress on that. Here in the month of
October for the first time since 1995 domestic production is
exceeding imports. We're expecting to get up to 7.5 million
barrels per day of production.
So, just the fact that we're discussing this dilemma, this
opportunity, to export oil really shows that we've moved from a
period of scarcity to potentially a period of more abundance.
So in terms of problems to have, it's a pretty good problem to
have.
As you pointed out the statutory requirement for ruling on
these lies with the Department of Commerce not with the
Department of Energy, but if confirmed I'd commit to working
with this committee and working with the Department of Commerce
to make sure that we're making smart decisions that are
consistent with the public interest.
The Chairman. That was a careful answer. I think I'll let
it be at this point. You and I are going to have some more
discussions about that because you have expertise and you've
got passion in the field. You're going to be consulted.
So on notice, when confirmed, because as you know I'm going
to be supporting you. I believe you're going to win support in
this committee. I certainly hope so. You and I are going to
have some more conversations.
Mr. Smith. Thank you, Senator.
The Chairman. On this topic.
Let me turn to you, Mr. Croley, for my remaining time on
this round and talk to you a bit about whistle blowers.
The Department of Energy has had, for quite some time,
policies to protect both agency and contractor employees who
raise safety or operational issues. My own view is that these
have come to look very ineffective.
Just last month a Hanford whistle blower, whose concerns
were the subject of an entire investigation in the safety
culture at Hanford by Peter Winokur and the Defense Nuclear
Facility Safety Board, that whistle blower was fired.
The decision came just days after the Secretary and Deputy
Secretary Poneman issued a Department side memo pledging to
maintain a strong safety culture and listen to dissenting
opinions.
So I think I indicated to you in the office, I'm pretty
much a lawyer in name only. I ran the legal aid office for
senior citizens. Yet, I still understand that the Department
and the contractors have a right to defend themselves against
lawsuits. But the Department spends millions of dollars on
cases challenging whistle blower's claims and worse retaliation
against whistle blowers.
In the Hanford case the Department has already reimbursed
the contractors for $1.75 million in legal fees and the case is
not yet over. So as General Counsel, when confirmed, you're
going to oversee the contractor's legal plans and costs as well
as those of the Department.
So my question is will you commit this morning to taking an
independent look at how the Department and its contractors
handle whistle blower complaints, retaliation against whistle
blowers and resulting litigation. I'd like you to get back to
us within a reasonable time. Why don't we say forty-five days
after confirmation?
Will you commit to doing that?
Mr. Croley. Yes, Senator.
Mr. Croley. I recognize, as the Secretary has addressed
this issue as well, the importance that all Federal employees
and as you suggest Federal employees and Federal contractors,
the importance that they feel like they are in an environment
where they can raise concerns.
I understand this is crucial.
It is crucial to protect the taxpayer.
It is crucial to ensure the safety of our Federal worksites
at Hanford and elsewhere.
So this is an important matter.
Without commenting on the particular case you're
referencing, which I'm sure you appreciate, is in litigation.
On the question on reimbursement of legal fees, I would commit
to you, to work with you and to take an independent look on
that issue.
I understand the General Counsel has some authorities
there. My understanding is that a regional counsel do as well.
So I will have to roll up my sleeves, but I would commit
unequivocally to doing that.
The Chairman. I appreciate that.
As you know from our discussion in the office every
independent group thought that he was raising legitimate
concerns, every single, independent group. I think it's time to
really draw a line in the sand because if the message is out
department-wide that when you speak truth to power and you come
forward and lay out what your concerns are, you face these
kinds of problems. I think it's going to be very detrimental to
a safety agenda.
You don't want that to happen. I don't want that to happen.
The Secretary doesn't want it to happen. So let's operate under
the assumption that you're going to look at this, give us an
independent take. 45 days after confirmation it will be sent to
Senator Murkowski and myself. We'll share it with the
committee.
Senator Murkowski.
Senator Murkowski. Thank you, Mr. Chairman.
Mr. Smith, I appreciate your comments. I read the article
in the Post this morning about the crossing of the lines where
since the first time since 1995 our production with oil,
domestically, has surpassed that of our imports. I think that
that's good news for the country. I think that that gives us
opportunities.
I have stated many times that we're going through a, just
kind of a reassessment, in terms of understanding our energy
and our energy portfolio. It's tough to transition your thought
when you've been used to focusing on areas of scarcity. Now we
are truly looking to areas of abundance whether it be oil or
natural gas.
I think there's exciting times when it comes to so much of
our fossilized fuels. Where our opportunities lie for, not only
increased energy independence, but what it means from an
economic perspective. So a lot of talk here at the committee
today about natural gas, discussion here about oil, obviously
the issue of coal and how we access that in an environmentally
responsible way, the advances through CCS, but there are also
some other areas where our technologies will allow us to go
places that we have not really been able to dig into.
I'm interested in the area of methane hydrates. I think
that we have great potential up north. We've been working with
the Japanese government, have been engaged in a study with
Japan.
The program for methane hydrate research is proposed at $5
million for FY2014. This is far less than what the department
needs to follow up on the test that was done back in January
2012 up in Prudhoe Bay.
Japan has conducted its own follow up test and reported
some substantial progress in being able to tap methane
hydrates. It's not just, of course, off of Alaska that we have
enormous potential for methane hydrates. We've got clearly in
the Gulf of Mexico.
So kind of a broad question and then ask you to focus it
down.
First, in terms of your commitment to an all of the above
and we're talking about the Fossil Energy Department and the
focus on all fossil fuels whether the commitment is there to be
an advocate for all of the fossil fuels. Not only those that
are in favor today like natural gas, clearly, but how we're
able to access our coal, our oil and perhaps the more
experimental sources like methane hydrates, oil shale.
Then if you could speak a little bit to the methane
hydrates.
Mr. Smith. Thank you very much, Senator, for that question.
I think that as your, some of your comments articulate,
ours truly is an all the above strategy. I mean I've had an
opportunity to spend some time talking about our historic
investment in carbon capture and sequestration which is
primarily aimed toward ensuring that coal fired power
generation remains a relevant part of the clean energy economy
of the future.
Another part of the portfolio which I've actually managed
as the Deputy Assistant Secretary for Oil and Natural Gas is
the project that you mentioned, the initiative to investigate
the viability of producing natural gas from methane hydrate
formations.
Just last year I signed a Memorandum of Agreement between
the Department of Energy and the State of Alaska. I signed that
with Dan Sullivan, who at the time was the Commissioner for the
Alaska Department of Natural Resources which for us was a real
model of collaboration between the Federal Government and State
government and also working with international governments. The
government of Japan partially funded the test that we did in
Alaska back in 2012. Working with the private sector, the
methane hydrate well that we drilled back in 2012 was drilled
in collaboration with Conoco.
So we continue to think that these projects are incredibly
important which is why, excuse me, why we're continuing to
collaborate with the State of Alaska.
When I was in Alaska just a couple weeks ago we, the
Department of Natural Resources issued a press release in which
it took a chunk of acreage, pulled it off of its leasing plan
and reserved that for the Department of Energy and the
Department of Natural Resources to collaborate on future
methane hydrate research.
So we're taking steps to make sure that we advance those
projects. We're looking for novel ways of pushing forward on
the technology. If confirmed in this role I'd commit to working
with you and this committee to make sure that those, that
research, has the maximum chance of being successful.
Senator Murkowski. I appreciate you saying that because it
is an area that is somewhat overlooked. If it's not discussed,
I know Senator Akaka and I had worked on advancing the issue of
methane hydrates and how we can better understand what it is
that we have and how best to access it recognizing that there
are real challenges with accessing, particularly in an arctic
environment and the environmental challenges that we face
there.
But I appreciate your background to it and understand that
as we try to establish some budget priorities in budgets that
are growing skinnier all the time, it's important to have an
advocate who knows and understands what the potential can be
for us, not only from a national perspective, but working
cooperatively with some of our partners overseas.
Mr. Smith. Thank you, Senator.
Senator Murkowski. With that, Mr. Chairman, I thank each of
you. I would hope that we would see these names moved through
quickly. I will stand to support each of you and appreciate
your willingness to serve.
Mr. Smith. Thank you.
The Chairman. In our tradition, Senator Murkowski has the
last word.
Just one little bit of business, Ms. Kiaaina, I'm very much
in favor of your nomination. We'll have a few matters that
we're going to ask you in writing. Nothing torturous, but a few
others things we want to do.
The Chairman. With that and let me state that I support all
the nominations as well today, enthusiastically.
The Energy Committee is adjourned.
[Whereupon, at 11:25 a.m., the hearing was adjourned.]
APPENDIXES
----------
Appendix I
Responses to Additional Questions
----------
Response of Steven P. Croley to Question From Senator Wyden
Question 1. Dr. Croley, Current DOE General Counsel Mr. Greg Woods
memorialized in a letter to Mr. Elliot Mainzer, Acting Administrator of
BPA, dated November 12, 2013, the reporting relationship between the
DOE General Counsel office and BPA's General Counsel (copy attached). I
have read Mr. Wood's letter and find it a helpful clarification of
Deputy Secretary Daniel Poneman's October 24, 2013 memorandum regarding
reporting relationships between BPA and DOE. For example, the Woods
letter clarifies that the BPA GC continues to report to the BPA
Administrator under the new reporting relationships outlined in the
Deputy Secretary's letter. If you are confirmed will you commit to
implement the DOE GC/BPA GC approach stated by Mr. Woods in his
November 12, 2013 letter?
Answer. Yes.
Responses of Steven P. Croley to Questions From Senator Barrasso
Question 1. In 2011, the Government Accountability Office (GAO)
issued a report which found that the Department of Energy (DOE)
violated the miscellaneous receipts statute (31 U.S.C. 3302(b)) in a
series of transactions with USEC between December 2009 through June
2011. Upon reviewing GAO's report, do you believe DOE violated Federal
law with respect to these transactions? If not, why not?
Answer. I am aware that GAO concluded its report that, pursuant to
the Miscellaneous Receipts Statute, the Department should have
deposited into the Treasury funds equal to the value of the uranium
transferred to USEC in exchange for accelerated cleanup services in the
transactions covered by the report. I further understand that in its
official agency comments to the report, the Department respectfully
disagreed with GAO's conclusion in that regard. I am strongly committed
to working with GAO and other overseers that are key to the federal
quality control process. If confirmed as General Counsel I will ensure
that the Department cooperates fully with GAO investigations and
complies with all applicable law in connection with any proposed
transaction.
Question 2. If confirmed, what steps will you take to ensure that
DOE complies with the miscellaneous receipts statute (31 U.S.C.
3302(b))?
Answer. If confirmed, I will ensure that DOE complies with the
Miscellaneous Receipts Statute. Specifically, I will ensure that every
transaction involving the transfer of uranium receives full legal
review, including for consistency with the Miscellaneous Receipts
Statute and other applicable laws.
Question 3. Section 3112(d) of the USEC Privatization Act (42
U.S.C. 2297h-10(d)) states that the Secretary may sell or transfer
natural or low-enriched uranium from DOE stockpiles provided that:the
Secretary determines that the sale of the material will not have an
adverse material impact on the domestic uranium mining, conversion, or
enrichment industry, taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agreement.
Since the May 15, 2012 Secretarial Determination, the U.S. spot
price of U3O8 has fallen by roughly 30 percent. What steps, if any,
would you take to ensure that all future Secretarial Determinations are
in compliance with Section 3112(d)?
Answer. If confirmed as General Counsel, I will work with my
colleagues in the Department to ensure that any sales or transfer of
uranium, if undertaken, complies with applicable law, including Section
3112 of the USEC Privatization Act. I understand that the Department's
current practice is to examine any sale or transfer of uranium to
determine whether it might have an adverse material impact on the
domestic uranium mining, conversion or enrichment industry. If
confirmed as General Counsel, I will ensure that that there is full
legal review of any potential transaction.
______
Responses of Esther P. Kiaaina to Questions From Senator Wyden
Question 1. In 2010, the Administration signed an agreement with
the Republic of Palau to revise the Compact of Free Association and to
phase-out financial assistance by 2024. However, about that time, new
Congressional budget rules came into effect which require the
Agreement's estimated $170 million cost to be offset.
In addition to occupying a strategic position in the Western
Pacific, Palau is arguably the United States' closest ally-it votes
with the U.S. in the U.N. more than any other nation, and its citizens
enlist in the U.S. military at rates that exceed that of any State.
Can you assure the Committee that, if confirmed, identifying an
offset and seeking approval of the Agreement with Palau will be a top
priority?
Answer. Yes, I can assure the Committee that approval of the Palau
financial agreement, and continuing to work within the Administration
and with Congress to identify an acceptable offset, will be a top
priority of mine if I am confirmed. It is my understanding that the
Administration strongly supports the approval of the Palau financial
agreement, and looks forward to continuing the United States
partnership with Palau. I fully support the Administration's position.
Question 2. The largest programs at the Office of Insular Affairs-
about $175 million annually and half of the Office budget--are the
Compacts of Free Association with Micronesia and the Republic of the
Marshall Islands. However, there are only 6 full time employees
committed to oversight and implementation of these two programs.
If confirmed, do you pledge to work with the Committee on a
comprehensive review of these programs--their staffing, monitoring and
performance?
Answer. Yes, if confirmed I will work with OIA to provide a review
of staffing, monitoring, and implementation of the Compact program.
Question 3. Several months ago, the Acting Assistant Secretary for
Insular Affairs closed the Office of the Labor Ombudsman in the
Northern Mariana Islands without consultation with Committee or a plan
for how the activities of that office would be handled in the future.
Would you take the message back to the Department that the
Committee asks that no action be taken to fill the Field Representative
position in the Marianas until after consultations with the Committee
on a plan to address the activities of the former Ombudsman's Office?
Answer. Yes. I will take this message back to the Department.
______
Responses of Esther P. Kiaaina to Questions From Senator Murkowski
Question 1. Nearly half of the Office Insular Affairs' budget
($200+ million) goes to the Freely Associated States under our Compacts
of Free Association yet the Office only has two employees in those
nations (one each in the Marshall Islands and Micronesia-plus four in
Hawaii). Do you believe there is a need for additional staffing in
those nations to oversee this amount of funding?
Answer. It is my understanding that in addition to staff listed
above; several staff in the Washington, DC office spend most of their
time on compact issues. However, resources for additional staff are
limited. I would be happy to review whether an increase is feasible if
I am confrrmed as the Assistant Secretary.
Question 2. The U.S. Virgin Islands is facing tough economic times
with the shutdown of the Hovensa petroleum refinery both from a loss of
jobs and income as well as from higher energy costs. If confirmed, what
action do you believe the Office of Insular Affairs should take to help
the people of the USVI?
Answer. I am aware of challenges facing U.S. territories and freely
associated states due to high energy costs. With regard to the U.S.
Virgin Islands, the closure of the Hovensa petroleum refinery has
caused harm to the USVI's economy, including jobs losses and higher
energy costs. It is my understanding that the Interagency Group on
Insular Areas has met to discuss concerns surrounding the energy
crisis, and federal partners from the Departments of Energy, Commerce
and Agriculture continue to participate in discussions on key energy
issues and possible solutions with key USVI officials. If confirmed, I
look forward to engaging with Congress, our federal partners, energy
research entities and USVI officials to find solutions to this problem.
Question 3. Earlier this year Congress passed, and the President
signed into law, legislation granting the Northern Marianas
jurisdiction over submerged lands similar to what the other states and
territories already had, however, it is my understanding that those
lands have not yet been conveyed to the CNMI. Could you give me an
update on the status of that conveyance?
Answer. It is my understanding that the conveyance of the submerged
lands surrounding the CNMI will take place by operation of law 120 days
after the date of enactment. I do not have any information about
current discussions within the Administration at this time. If
confirmed I would be happy to discuss this important matter.
Question 4. Could you explain the decision to close the Office of
the Federal Ombudsman in Saipan? What assurances do you have from the
Departments of Labor and Homeland Security that foreign workers will
have access to federal assistance if warranted?
Answer. Although I am not at the Department, it is my understanding
that in 2009 the Department of Homeland Security took over immigration
responsibilities in the Commonwealth ofNorthern Mariana Islands
pursuant to the terms of the Consolidated Natural Resources Act. I have
been told by the Department that in the past several years, the work of
the Ombudsman's office has shifted dramatically from working on serious
labor and trafficking violations to assisting individual alien workers
with more routine immigration and labor issues.
______
Responses of Chris Smith to Questions From Senator Murkowski topher
Question 1. The NERA study used 2011 data from the Energy
Information Administration's Annual Energy Outlook. At the time the
study was commissioned, was the AEO from 2012 or 2013 available?
Answer. No, the NERA study used projections from EIA's natural gas
export study, which was commissioned on August 15, 2011 and completed
on January 19, 2012. The EIA natural gas export study used 2011
projections, which at the time were the most recent projections
available.
Question 2. To what extent does the Department of Energy
incorporate the most recent EIA data when assessing LNG export
applications? Does it use AEO 2013, for example?
Answer. The Department is constantly monitoring the natural gas
market, which includes the latest EIA projections, such as AEO 2013.
The Department discussed the comparison of AEO 2011 with AEO 2013 in
its recent LNG export authorizations.
Question 3. When comparing the EIA projections from AEO 2011 to the
projections from AEO 2013, is more or less natural gas expected to be
produced domestically? Is more or less LNG expected to be exported from
the United States.
Answer. AEO 2013 projects domestic natural gas production to be
greater than the amount projected in AEO 2011. AEO 2013 also projects
higher exports of LNG than AEO 2011.
Question 4. Record levels of U.S. natural gas are currently being
exported to Mexico and Canada via pipeline. Has the Department of
Energy observed any harmful impact to overall energy markets and supply
as a result of this increase?
Answer. Although exports of natural gas to Canada and Mexico in
2012 were at record levels of 1.0 trillion cubic feet (Tcf) and 0.6
Tcf, respectively, the United States imports significantly more natural
gas from Canada than it exports to either country and remains a net
importer of natural gas. The Department notes that net pipeline imports
of natural gas have declined from a peak of 3.4 Tcf in 2001, to 1.4 Tcf
in 2012, while domestic production of dry natural gas has risen from
19.6 Tcf in 2001 to 24.1 Tcf in 2012. Wellhead natural gas prices
declined during this period. The Department has not observed any
harmful impacts to overall energy markets and supply resulting from the
decrease in net natural gas imports via pipeline.
Question 5. Do any memoranda of understanding or other joint
agreements govern the Office of Fossil Energy's relationship with the
Department of State's Bureau of Energy Resources?
Answer. No, the Office of Fossil Energy does not have formal
agreements with the Department of State's Bureau of Energy Resources.
As we do with other interagency partners with which we share equities,
the Office of Fossil Energy has a good working relationship with the
Department of State, particularly on collaboration on shale gas and
bilateral activities with China, Canada, and Norway.
Question 6. How would you describe the national interest in
promoting best practices in fossil energy development overseas, either
through partnership with the Department of State or other programs?
Answer. Promoting best practices in fossil energy development
overseas serves American interests for economic, environmental and
national security reasons.
CCS Role in EPA Climate Rules
Question 7a. The Environmental Protection Agency is writing climate
regulations for new and existing power plants and the agency looks to
be headed towards mandating the use of carbon capture and storage
(CCS). I understand that the position you are nominated for isn't
directly responsible for these rules, but in the interagency process
and as a technical matter you can and should be in a position to speak
to the readiness of CCS.
In your opinion is CCS currently commercially available for power
plant applications?
Answer. CCS technology has been and continues to be deployed in a
range of projects. There are twelve large-scale CCS projects in
operation worldwide today. CCS technology has been and continues to be
deployed with CO2 captured from gas processing and
industrial separation. By 2020 another eight projects, including the
first commercial scale electric power plants with CCS, are anticipated
to come online. If confirmed, I will continue to work with industry in
advancing CCS technologies to continue reducing the cost of capture,
making CCS more efficient, and preparing for wider-scale deployment in
future years.
Question 7b. Do you believe that the affordability of installing
and operating CCS equipment should be accounted for in defining the
phrase ``commercially available''?
Answer. All components of CCS, including large-scale CO2
capture, transportation, and multi-million ton per year injection, have
been demonstrated world-wide and in the U.S. for many years. We expect
to see substantial cost reductions brought into industrial practice
with continued R&D and as large-project deployments advance from first-
of-a-kind plants.
Question 7c. Please outline the work DOE generally and areas under
your direction specifically are taking to enable this technology to
become a practical reality?
Answer. The Office of Fossil Energy (FE) is addressing the
challenges of widespread deployment of clean coal technologies by
sponsoring large-scale demonstrations and investing in advanced
technologies to reduce costs.
FE is funding, in partnership with industry, eight major
demonstration projects that will help address the first-of-a-kind
technology risks that come with deploying innovative CCS technologies.
In order to reduce costs and make carbon capture more efficient, the
Office of Fossil Energy has a robust research and development program
investing in advanced and revolutionary CCS technologies.
FE is also focused on carbon storage, developing technologies with
industry to ensure the safe and permanent storage of the captured
CO2 in different geologic formations and sequestering large
volumes of CO2 through seven Regional Carbon Sequestration
Partnerships. These large volume tests and related applied science will
provide the field experience to develop and validate technologies that
can predict storage capacity, validate storage permanence, and develop
best practices.
Responses of Christopher Smith to Questions From Senator Portman
Question 1. As I asked during the your hearing, I would appreciate
it if you can provide this committee a detailed report on DOE's
existing CCS programs that includes: an assessment of the success of
individual programs, and an assessment of the estimated time frame and
estimated cost to federal taxpayers to get CCS technologies to
commercial viability?
Answer. If confirmed, I will commit to providing the committee
detailed information on DOE's existing CCS programs. We are committed
to transparency and our proud of our technology program. The Office of
Fossil Energy will provide detailed information outlining our key
programs and their progress.
Question 2. If confirmed, will you increase, decrease, or maintain
the current pace of NFTA applications for LNG export from the United
States?
Answer. If confirmed, I will continue to expeditiously process the
applications on a case-by-case basis.
Question 3. At the current DOE pace, some projects that were in the
queue this time a year ago may not have a decision on NFTA
authorization much before 2016. Is a three year wait appropriate?
Answer. When DOE makes a public interest determination on an
application, an order is released that explains the detailed reasoning
for making the decision. These are complex documents in which DOE must
address a wide range of issues, including economic, environmental and
energy security and supply issues, as well as claims and counter-claims
made in the public comments. If confirmed, I will continue to process
these applications as expeditiously as possible.
Question 4. Currently, DOE is processing NFTA applications one at a
time, in the order that the applications were received. Is there an
opportunity for DOE to process the applications concurrently?
Answer. The Department of Energy is reviewing the LNG export
applications on a case-by-case basis, weighing any circumstances that
may be unique to an individual application. The Department looks at the
potential cumulative impacts of each conditional authorization as it
goes forward.
Question 5. Since one of the strategic focus areas of the
administration is natural gas, what consideration has been given to
accelerate the application of technology developed in the Solid State
Energy Conversion Alliance (SECA) program for highly efficient electric
power generation directly from natural gas?
Answer. In response to recent budget constraints, the Office of
Fossil Energy's Clean Coal program has prioritized near-term CCS
technologies deployable in the 2020 timeframe. As a result, development
of solid oxide fuel cells for 100-plus megawatt coal-based systems, a
longer-term transformational technology, was not supported by the FY
2014 budget request.
However, the Solid State Energy Conversion Alliance (SECA) Cost
Reduction program achieved its 2010 goals performance and durability.
Progress under this program has brought solid oxide fuel cell
technology to a point where it is approaching commercial feasibility
for small scale (sub-megawatt) applications that can be supported by
investment from industry (e.g., Bloom Box).
Question 6. With the growing reserves of natural gas, and the move
to natural gas as a fuel for electric power generation, how is natural
gas utilization being addressed to ensure lowest cost and highest
efficiency electric power generation?
Answer. The Office of Fossil Energy does not have a technology
program on natural gas utilization. The Department is focused on
ensuring a safe and environmentally sustainable supply of natural gas.
That said, some of the Office of Fossil Energy's work under the coal
program is applicable for natural gas power generation, such as carbon
capture and plant efficiency technologies.
Question 7. Does the DOE see a relationship between near-term
natural gas application of SECA technology for distributed generation
and the long-term goal of central power generation with gasified coal?
Answer. Yes. Many of the core challenges facing SECA technology
commercialization are independent of fuel type (i.e., natural gas or
syngas) and success in natural gas commercialization may support
longer-term commercialization with other carbon-based fuels.
Responses of Christopher Smith to Questions From Senator Landrieu
The Department of Energy has begun to grant authorizations for the
export of LNG to non-FTA countries. These orders have generally
authorized export for a flat 20-year term commencing with first LNG
export from a particular LNG export facility. Given the billions of
dollars of investment needed to develop and build LNG export
facilities, these projects generally require long-term commercial off-
take agreements with customers to secure financing. It is common in the
LNG industry for these long-term agreements to have a 20-year term
commencing with full commercial operations of the LNG export facility.
Therefore, the term of the export authorizations raises potential
commercial and financing issues for LNG export projects.
First, testing and commissioning of LNG facilities will require the
production of small quantities of LNG. These quantities may be
insufficient to trigger start of the customer contracts. But it is
unclear whether it will trigger the start of the DOE authorization. If
this timing mismatch occurs, it may impair the ability of proposed LNG
export projects to raise the required financing that is supported by
the revenues under those agreements.
Second, LNG export projects are commonly designed to have multiple
LNG production units, or trains, that are constructed, tested and
commence operations sequentially over a multi-year period, resulting in
a ramping up of production at an LNG export facility. A flat 20-year
term of export authorization that is triggered by first export ignores
this reality, and potentially leaves LNG export projects with
insufficient authorization to meet their commitments under commercial
off-take agreements, even those with an equivalent 20-year term.
Question 1. Is the Department willing to issue clarifications on
this issue so that the necessary commercial off-take agreements and
substantial financing needs for these projects are supported by the
regulatory approvals backing them?
Answer. The 20-year term begins from the date of first export to a
non-FTA country, not the date of first liquefaction. Accordingly, the
production of small quantities of LNG for testing and commissioning
will not trigger the 20-year term.
In imposing this condition, the Department is mindful that LNG
export facilities are capital intensive and might ramp up over a multi-
year period. Parties are free to request clarification or rehearing
regarding the conditions that apply to their final authorizations. The
Department will respond to all such requests in the context of those
proceedings.
I have some concern regarding the current pace of permitting
for LNG export applications as well. I see that some projects
that were in the queue this time a year ago may not even
receive NFTA approval much before 2016.
That's a three-year wait before getting NFTA approval--not two
months. This places the financing and contract agreements for these
facilities in jeopardy, and risks the economic benefit they promise.
Question 2. What is your plan to speed up the process to match the
critical commercial window so the US captures the greatest possible
opportunity? What angles have you explored to move this forward more
quickly so that qualified projects can capture the opportunity for the
U.S.?
Answer. When DOE makes a public interest determination on an
application, an order is released that explains the detailed reasoning
for making the decision. These are complex documents, in which DOE must
address a wide range of issues, including economic, environmental and
energy security and supply issues, as well as claims and counter-claims
made in the public comments. If confirmed, I will continue to process
these applications as expeditiously as possible.
Responses of Christopher Smith to Questions From Senator Barrasso
Question 1. On October 29, 2013, before the House Committee on
Science, Space, and Technology, your predecessor, Charles D. McConnell,
stated that ``[t]he cost of current CO2 capture technology
is much too high to be commercially viable.'' He explained that
``[t]echnology exists for separation and capture of CO2 at
the plant, but it increases the cost of generated electricity by about
80%.'' Finally, he noted that ``affordable solutions may be decades
away with the current level of funding.'' Do you agree with Mr.
McConnell's statements? If not, why not?
Answer. CCS (with and without enhanced oil recovery EOR or other
utilization) has been deployed at 12 facilities world-wide. The
technology components have been tested at large-scale and integrated
projects at medium-scale (approximately 100 megawatts). As such, I do
believe that CCS is ready to deploy on new power plants. If confirmed,
my job will be to continue to reduce the technical risk and lower costs
to provide the widest set of options for clean fossil energy deployment
in the US by US companies.
I believe we have already made significant progress. During the
Obama Administration, DOE has made an approximately $6 billion
commitment to accelerate deployment of clean coal technologies,
including technologies to capture carbon dioxide from coal plants. All
components of CCS, including large-scale CO2 capture,
transportation, and multi-million tons per year injection, have been
demonstrated world-wide and in the US for many years. We expect to see
substantial cost reductions brought into industrial practice with
continued R&D and as large-project deployments advance from first-of-a-
kind plants. This has been the course of many other energy
technologies, including wind, solar, natural gas, and vehicle
efficiency.
Question 2. Some argue that power plant owners which deploy carbon
capture technology will be able to recoup part of their costs by
selling carbon dioxide for the purposes of enhanced oil recovery (EOR).
However, EOR only takes place in certain areas of the country,
specifically in states with aging oil fields and a carbon dioxide
pipeline network. Is it reasonable to assume power plants throughout
the country will be able to sell carbon dioxide for the purposes of
EOR? Is EOR really a means for power plants nationwide to offset the
costs of deploying carbon capture technology?
Answer. EOR currently represents about 2 percent of oil production,
or 0.3 bbl/day. A study carried out for the EIA suggested that 3M bbl/
day might be produced domestically with CO2 EOR, and EOR is
part of several of the CCS projects currently being supported. While
EOR currently only takes place in certain areas of the country, those
areas will serve as critical commercial opportunities that will produce
domestic oil and provide revenues as we drive down the costs of CCS
technology nationwide. All would benefit from the cost reduction and
learning-by-doing that comes from increased CCS deployment. In
addition, those projects and investments would anchor expanded
CO2 pipeline infrastructure, which will ultimately support
and even attract companies who wish to take advantage of CO2
storage natural resource.
Question 3. Do you believe that carbon capture and storage
technology has been ``adequately demonstrated'' as defined pursuant to
section 111 of the Clean Air Act (42 U.S.C. 7411)?
Answer. Whether a technology is ``adequately demonstrated'' within
the meaning of the Clean Air Act is an issue committed to EPA's
discretion. DOE does not make that determination.
That said, there are twelve large projects in commercial operation
today demonstrating CCUS around the world. All components of CCS,
including large-scale CO2 capture, transportation, and
multi-million ton per year injection, have been demonstrated world-wide
and in the U.S. for many years.
Responses of Christopher Smith to Questions From Senator Cantwell
Question 1. DOE's national laboratories, including PNNL, are a
national asset with world class expertise in subsurface science and
engineering.
While new techniques in national gas production have dramatically
changed our domestic energy outlook, it is imperative DOE fully utilize
these capabilities to better understand and address environmental
implications.
We need to bring our best assets to bear in understanding the
limits of natural gas recovery from shale, the potential for induced
seismicity; and the best practices for protecting the environment. How
do you plan to access the breadth of capability available in subsurface
science and engineering, and apply it to the broader challenges within
Fossil Energy's mission area? What are your plans to collaborate with
offices across the Department on cross-cutting challenges in subsurface
science and engineering?
Answer. The Office of Fossil Energy is dedicated to utilizing the
expertise and resources of the national laboratories. The National Risk
Assessment Partnership (NRAP)--an initiative within the Office of
Fossil Energy and led by the National Energy Technology Laboratory
(NETL)--is a collaboration of national laboratories, including PNNL,
that uses science-based prediction of engineered-natural systems to
understand the long-term geologic storage of carbon dioxide.
The Office of Fossil Energy has been working with the other program
offices within the Department on understanding cross-cutting challenges
in subsurface science and engineering, per direction from Secretary
Moniz. If confirmed, I would be happy to brief you on all of the Office
of Fossil Energy's subsurface activities and discuss your interests in
subsurface science in the national interest.
Question 2. DOE's solid-oxide fuel cell (SECA) program represents a
highly successful partnership between the Department, its national
laboratories and industry--working on bringing fuel cell technology to
commercial readiness for high efficiency natural gas distributed
generation applications. What are your plans to ensure Fossil Energy
supports this program?
Answer. In response to recent budget constraints, the Office of
Fossil Energy's Clean Coal program has prioritized near-term CCS
technologies deployable in the 2020 timeframe. As a result, development
of solid oxide fuel cells for 100 plus megawatt coal-based systems, a
longer-term transformational technology, was not supported by the FY
2014 budget request.
However, the Solid State Energy Conversion Alliance (SECA) Cost
Reduction program achieved its 2010 goals performance and durability.
Progress under this program has brought solid oxide fuel cell
technology to a point where it is approaching commercial feasibility
for small scale (sub-megawatt) applications that can be supported by
investment from industry (e.g., Bloom Box).
Question 3. Ramgen Power Systems, a small energy technology company
in Washington state, is developing a unique shock wave compression
technology that could reduce the cost of compressing carbon dioxide.
Are you aware of this carbon dioxide compression research and
development? Do you believe this technology could be applied to small
engines for distributed generation uses? Will you look into the
potential of this technology, if confirmed?
Answer. I am aware of Ramgen Power Systems, who received $30
million in funding through the American Recovery and Reinvestment Act,
and their unique shock wave compression technology. NETL staff briefed
me on the technology after an August visit. If confirmed, I will commit
to looking into the potential of this technology for small engines for
distributed generation.
Responses of Christopher Smith to Questions From Senator Manchin
Two weeks ago, there was a joint Committee hearing held in the
House on the new EPA greenhouse gas regulations for new power plants.
In that hearing, both Chuck McConnell, the former Assistant Secretary
for Fossil Fuels (your predecessor and former boss) and Dr. Richard
Bajura, an expert on clean coal and CCS technologies from West Virginia
University, testified that CCS and CCUS technology is not currently
commercially available and has not been adequately demonstrated.
Chuck McConnell also testified that we need to bring the cost of
CO2 capture technology down if we're going to be able start
using it on new power plants, and that the only way to do that is more
research and more demonstrations.
But last week, Secretary Moniz said that CCS technology is ready to
meet the EPA new standard. He said this even as the projected costs of
building the plant in Kemper County are double what they were initially
expected to be.
Question 1. I want to ask you directly: do you think carbon capture
and storage (CCS) is ready to be deployed on all power plants? Please
answer yes or no.
Answer. CCS (with and without EOR or other utilization) has been
deployed at 12 facilities world-wide. The technology components have
been tested at large-scale and integrated projects at medium scale
(approximately 100 megawatts). As such, I do believe that CCS is ready
to deploy on new power plants. If confirmed, my job will be to continue
to reduce the technical risk and lower costs to provide the widest set
of options for clean fossil energy deployment in the U.S. by U.S.
companies.
As a follow-up question, Secretary Moniz has said in the past--to
me personally and publically--that we will need to use CCS on natural
gas power plants in the future to meet the President's Climate goals.
Question 1a. So I want to ask you: if CCS is ready for coal power
plants, shouldn't it have to be used on natural gas plants too? We know
that we can capture the CO2 from the stack: we've done it in
West Virginia at the Mountaineer plant. The only reason we're not doing
it now is that it's too expensive. So if CCS is ready, why are we only
penalizing coal?
Answer. As you know, EPA promulgated the rule creating a separate
standard for coal and natural gas. While many CCS technologies are
applicable for natural gas capture, there are key differences that need
to be addressed.
In order to be successful in the job that you are seeking, you will
necessarily have to be an advocate for your programs, especially your
coal program.
Over the last several years this Administration has continued to
shrink both the fossil energy and the coal budget, while doubling down
on renewables and energy efficiency.
Question 2. I know that you don't have complete control over
funding, but will you go to the mat for coal and fossil R&D funding?
Have you personally advocates for a larger coal budget within the
Department in the past? If you did, what happened? Did the Secretary
deny your request?
Answer. During the Obama Administration, the Department has
committed nearly $6 billion in clean coal technologies, including CCS
research, development, and deployment. If confirmed, I will continue
this commitment, within the budget constraints set by Congress.
The Department of Energy gave a $270 million dollar grant to
Southern Company to help build the next-generation coal-power plant
with carbon capture they're building in Kemper County, Mississippi. We
all know that they are way over cost, almost at $5 billion dollars when
initially it was thought the plant would cost $2.4 billion. So they're
over double the cost.
Tom Fanning has said that one of the reasons they're over cost is
that they didn't do enough engineering work up front, before they
started working on the plant. He hasn't gone into any more detail
though. From what I understand, he hasn't given your Department any
more information either, and if he has, your department hasn't
published it.
Question 3. I believe the only way we can learn is to learn from
our mistakes. Can you promise me that if you're confirmed, you will get
to the bottom of where the cost overruns happened, and publish a report
on it immediately? It should only be fair that they provide your
department with those numbers since helped fund the plant, correct?
Answer. Under the cooperative agreement between the Department of
Energy and Southern Company, there are terms for data sharing so the
Department can help apply best practices to other projects going
forward. If confirmed, I will work to understand how and why the cost
overruns happened.
As you know, I have a keen interest in the National Energy
Technology Laboratory in Morgantown. NETL is at the forefront of
researching how to develop and use fossil energy in an environmentally
responsible fashion. They've also been very successful, with scores of
R&D 100 awards in the last decade, and numerous Federal Laboratory
Consortium awards for Excellence in Technology Transfer. In short, NETL
is great lab, doing great things for the fuels that we use the most,
and getting those technologies to the marketplace.
NETL is also unique in that it operates as a Government-owned,
Government-operated (GO-GO) facility. NETL's operating model is common
throughout much of the Government, but not for the national labs.
Question 4. If confirmed would you support the current GO-GO
structure of NETL?
Answer. The National Energy Technology Laboratory is a key resource
for the Office of Fossil Energy and the Department of Energy. The staff
at NETL serve the needs of the nation well and deserve support. If
confirmed, I will continue to support NETL and look forward to
opportunities to discuss NETL with you in the future.
NETL has also traditionally had a role working in a broad range of
DOE programs, most recently Energy Efficiency and Renewable Energy (EE/
RE) and the Office of Electricity Delivery and Energy Reliability (OE).
Question 4a. Would you support the continued efforts of NETL in
accomplishing these key aspects of DOE portfolio?
Answer. Yes, I support NETL's work for the Office of Fossil Energy
and other program offices.
The National Energy Technology Laboratory has only had an interim
Director since late September. I have not heard any updates during that
time about any progress made in finding a new Director.
I understand that this process does not occur overnight, but I am
concerned that without a clear path to new leadership, operations and
progress in critical research areas such as carbon sequestration will
suffer. As such, I want to express my hope that the Department is
moving with all appropriate speed on this task.
Question 5. Can you provide an update on the progress in finding a
new Director and an estimated month by which one will be appointed?
Answer. We do not have an estimated time by which a new Director
will be appointed, but we are committed to finding one expeditiously.
We are driving the process with care and diligence, and would be happy
to provide regular updates to your office.
Question 6. There are programmatic barriers that limit the National
Energy Technology Laboratory ability to grow its programs and
capabilities beyond its historical fossil energy mission space. Would
you be willing to help remove those barriers so that NETL can respond
to opportunities to grow?
Specifically, will you work to allow NETL to explore into other
arenas of research, as have other labs and sections of DOE? This type
of research has allowed other organizations to grow in DOE.
Answer. Having a national laboratory focused on the fossil energy
space is an invaluable national resource. If confirmed, I will look
into potential opportunities for NETL expand their expertise in related
areas.
A recent NETL study reported that we could almost triple the amount
of oil economically recoverable via Enhanced Oil Recovery (EOR), from
over 20 billion barrels to 60 billion barrels, through advanced and
next-generation EOR technologies and practices.
Advanced technologies are needed to unlock this substantial
domestic resource of ``stranded'' oils, however, this Administration
consistently requests zero funding for Department of Energy oil
research.
Question 7. My question to you Mr. Smith is--given this significant
potential and all the associated benefits to our nation if we develop
this ``stranded'' oil resource, would you, if confirmed, advocate for
research funding focused on Enhanced Oil Recovery, including funding
for carbon dioxide enhanced oil recovery technologies?
Answer. EOR currently represents about 2 percent of oil production,
or 0.3 bbl/day. A study carried out for the EIA suggested that 3M bbl/
day might be produced domestically with CO2 EOR, and this is
part of several of the CCS projects currently being supported. Such a
factor of ten increase in CO2 EOR compared with today would
require capture of over five hundred megatons of CO2 from
power plants and/or appropriate manufacturing.
Five out of the eight major CCUS demonstration projects include an
EOR component. If confirmed, I will continue to focus on the
opportunities for utilizing captured CO2 facilities.
The Department of Energy's research portfolio seems void of
research aimed at improving the efficiency of natural gas production
from shale formations and other unconventional formations, and in
maximizing resource recovery. Such research would have widespread
benefits for many businesses and for our nation.
Question 8. That being the case, do you recognize the value in
production-related research and would you actively work to secure
funding from Congress through the DOE Office of Fossil Energy to
conduct this research?
Answer. DOE played a significant role in the research and
development that has led to U.S. industry greatly increasing our
Nation's natural gas and oil production from shale. The Office of
Fossil Energy currently funds R&D on ensuring the safe and
environmentally sustainable supply of natural gas. NETL also oversees
research expenditures from the Royalty Trust Fund created in the 2005
Energy Policy Act. This research program supports environmentally sound
unconventional natural gas production, among other programs such as
ultra-deep water and small producers. If confirmed, I will work to
ensure the Office of Fossil Energy's research ensures the safe and
environmentally sustainable supply of natural gas.
Many of the landowners and businesses alike involved in the
recovery of Shale gas are concerned about the usage of water in that
process. Given the enormous economic potentials of this shale gas, such
a concern should be addressed. To reduce the Environmental footprint of
Natural Gas production, ``a comprehensive program is needed to address
the issues of water use and backflow and produced water in
unconventional gas production,'' as recommended in a report issued from
an MIT study group chaired by Dr. Moniz in 2011.
Question 9. Would you support the funding of a program in the DOE
Office of Fossil Energy to accomplish such an important goal?
Answer. As mentioned above, the Office of Fossil Energy currently
funds R&D on ensuring the safe and environmentally sustainable supply
of natural gas. NETL also oversees research expenditures from the
Royalty Trust Fund created in the 2005 Energy Policy Act. These
programs currently support research in water quality, availability, and
management. The Department has recently pulled together a cross-cutting
team to look specifically at the water and energy nexus and, if
confirmed, I will continue to support that effort.
The coal research and development portfolio is heavily focused on
carbon capture and sequestration, yet it is clear that advances in
other areas of coal technologies can have a significant impact on
reducing emissions and costs associated with coal use. These types of
incremental changes are an area where we have succeeded in the past and
have a low risk profile.
Question 10. Would you also support a robust suite of research
programs into other coal related technologies including mining,
advanced power efficiencies, combustion research, gasification, fuel
cells, and coal-to-liquids?
Answer. The Office of Fossil Energy has a robust R&D program for
non-CCS clean coal technologies. The Advanced Energy Systems program
explores advanced combustion systems, gasification systems and hydrogen
turbines. The cross-cutting research program explores plant
optimization technology and coal utilization science. If confirmed, I
will continue to support a robust and comprehensive clean coal
technologies program.
Appendix II
Additional Material Submitted for the Record
----------
Statement of Tina Cabiles-Carden, President, Hui Hawai'i, Utah Hawaiian
Civic Club
By way of introduction, Hui Hawai'i O Utah Hawaiian Civic Club is
located in Salt Lake City, Utah and is one of sixty-eight units
established nation-wide under the umbrella of the Association of
Hawaiian Civic Clubs, which is based in Honolulu, Hawai'i. The first
Hawaiian Civic Club was organized in 1918 by Prince Jonah Kalanianaole
Kuhio, then Hawai'i's delegate to the U.S. Congress, and a group of
civic-minded Hawaiian men who envisioned the pressing need for Native
Hawaiians to engage in the county, state, and Federal levels of
government. Hui Hawai'i O Utah members, together with other Native
Hawaiians throughout Utah, continue to maintain strong cultural ties to
Hawai'i while simultaneously being effective and contributing residents
prepared to act on issues that affect our individual communities.
Esther Puakela Kia'aina is such a committed Native Hawaiian leader.
As president, I am writing in support of Ms. Kia'aina's nomination as
Assistant Secretary of Insular Areas, United States Department of
Interior. She has had exceptional training in schools of recognized
excellence; a broad background in policy and planning in Hawai'i, U.S.
Pacific Territories, Freely Associated States of Micronesia, and Asian
and Pacific Islander issues; and applicable experiences in and at the
Federal level which repeatedly prove her ability to administer all the
responsibilities as Assistant Secretary of Insular Areas.
After you have examined Ms. Kia'aina's credentials, we respectfully
request your approval, together with the other members of the Committee
on Energy and Natural Resources, of Esther Puakela Kia'aina's
nomination as Assistant Secretary of Insular Areas, United States
Department of Interior.
Mahalo (thank you).
______
Statement of Jobie M. K. Masagatani, Chairman, Hawaiian Homes
Commission, Honolulu, Hawaii
Aloha Chairman Wyden, Ranking Member Murkowski, and distinguished
members of the Senate Committee on Energy & Natural Resources. Thank
you for this opportunity to provide this testimony in support of
President Obama's nomination of Ms. Esther Kiaaina. Ms. Kiaaina is very
well qualified for this leadership position as she brings years of
Washington experience and profound knowledge of insular areas to the
Department of the Interior.
Over her professional career, Ms. Kiaaina has demonstrated a strong
committment to public service. Among her accomplishments is her work
while on U.S. Senator Daniel K. Akaka's staff to achieve passage of the
Hawaiian Home Lands Recovery Act (P.L. 1040942) nearly 20 years ago. As
a result of this effort, the Department of Hawaiian Home Lands received
a committment of 913 acres of Federal land to settle land use and
ownership disputes between our agency and the Federal Government. This
settlement marked a turning point in our agency's history, and these
lands are now used to generate resources to support our public land
trust and homestead program.
In addition to this landmark legislation, Ms. Kiaaina's attention
to Office of Management and Budget (OMB) Statistical Policy Directive
No. 15 significantly revised the way the Nation collected data on
Native Hawaiians. This has led to greater awareness regarding the needs
of our population, and, as a result, more effective programs.
In closing, Ms. Kiaaina has served Hawaii well as staff and as an
advisor to members of our state's congressional delegation, as chief
advocate of the Office of Hawaiian Affairs, and as first deputy of
Hawaii's Department of Land and Natural Resources. With her experience
and commitment to public service, she will be a tremendous asset to the
Department of the Interior. For this reason, we strongly support this
nomination and we ask your committee's favorable consideration. Mahalo
nui loa (thank you very much).
______
American Samoa Government,
November 11, 2013.
Hon. Ron Wyden,
Chairman, U.S. Senate Committee on Energy and Natural Resources,
Washington, DC.
Dear Chairman Wyden:
On behalf of the people of American Samoa, I wish to express our
support for the confirmation of Ms. Esther P. Kia'aina as the new
Assistant Secretary of the Office oflnsular Affairs, U.S. Department of
the Interior.
Ms. Kia' aina has long been an active and strong supporter for
Pacific Island peoples. She has a long history of advocacy and
compassion for issues impacting the lives of the Pacific Islanders.In
these tough social and uncertain economic times, the U.S. territories
need an Assistant Secretary that is well versed on the issues facing
our people and local governments. We also need a voice in the Federal
Government that has the cultural sensitivity to address our issues with
understanding and relevance. Ms. Kia'aina will be a great
representative of the peoples of the Pacific, as well as doing honor to
the position of Assistant Secretary.
It is with much respect that I ask for your support of Ms.
Kia'aina's confirmation to be the next Assistant Secretary of the
Office of Insular Affairs.
Sincerely,
Lolo Matalasi, Moliga ,
Governor of American Samoa.
______
Statement of Eddie Baza Calvo, Governor, Adelup, Guam
I am writing in full support of Esther Kia'aina's nomination as the
Assistant Secretary for Insular Affairs in the U.S. Department of the
Interior. Esther was born on Guam, and is a native Hawaiian. She was
the Chief of Staff of Guam's former Representative to Congress, Robert
Underwood. I believe her background makes her intimately familiar with
the issues facing the Insular Areas.
I have personally been acquainted with Esther's family for years,
and am proud to see a fellow islander be given the opportunity to serve
her nation and her Pacific community. I believe her upbringing on Guam
established roots that have kept her grounded to her heritage and laid
the foundation for her career in public service. Ties to the islands
and her experience in the highest levels of the Federal Government make
her an ideal candidate for the position.
Insular Area issues are complex because, although there are
similarities, there are also vast differences between America's
territories and states. We face similar challenges and our constituents
have similar needs. Nevertheless, our different geographical locations,
political status, economic abilities, and access to resources require a
different approach to allow us to help ourselves and families. I am
certain that our islands will greatly benefit from having an Assistant
Secretary who realizes this and is committed to workable solutions for
all territories.
If confirmed her presence will benefit all the Insular Areas and
the freely associated states. With Esther at the helm, we can begin
positive discussions on critical, long-range policy decisions like
climate change, self-determination, and other Federal matters that
affect not just Guam, but all the Insular Areas.
I recommend her swift contirmation so the next, promising chapter
in territorial-Federal relations can begin.
______
GUAM CHAMBER OF COMMERCE PARTNERS IN PROGRESS
November 12, 2013.
Hon. Ron Wyden,
Chairman, U.S. Senate Committee on Energy and Natural Resources,
Washington, DC.
Support for Esther Kia'aina Appointment as the Assistant Secretary for
Insular Areas at the U.S. Department of the Interior
Dear Chairman Wyden:
On behalf of the Guam Chamber of Commerce, we write this letter of
recommendation to support Guam-born Esther Kia'aina's appointment to
serve as the Assistant Secretary for Insular Areas at the U.S.
Department of the Interior.
In addition to her current position as First Deputy Director of the
Department of Land and Natural Resources in the State of Hawaii, Esther
Kia'aina has more than 25 years experience in public policy and
community outreach in Washington, D.C., Hawaii, and the Western Pacific
Region.
Throughout her tenure, Esther served as Chief Advocate for the
Office of Hawaiian Affairs, Land Asset Manager at the Kamehameha
Schools, Chief of Staff to Congressman Ed Case of Hawaii, Chief of
Staff and Legislative Director to Congressman Robert Underwood of Guam,
and Legislative Assistant to Senator Daniel Akaka of Hawaii.
Esther and her family have very strong ties to Guam. Esther
attended San Vicente Catholic School in Barrigada. Her parents, the
late Melvin and Lorelei Kia'aina, operated a very successful local
plant nursery business for many years and are fondly remembered by many
of our island leaders and residents for their active involvement in the
community and for their many business and civic contributions.
These traits and qualities are clearly evident in Esther's
professional and personal life. Having been born and rai sed in Guam,
Esther is keenly aware of the issues and needs facing our island and
has been instrumental in several key initiatives that have positively
impacted Guam and the western pacific region including:
The Compact-Impact Reimbursement Act, which was included in
Public Law I 0809188, and provides $30 million annually in
Compact Impact Aid to Hawaii, Guam, and other impacted areas.
The Guam Land Return Act, which became Public Law 10609504,
and provides the Government of Guam with the first right of
refusal for all Federal excess lands on Guam.
The Guam Foreign Investment Equity Act, which became Public
Law 10709212, and provides greater forei gn investment
opportunities in Guam through lower tax rates.
The Guam War Claims Review Commission Act, which became
Public Law 10709133, and addresses claims arising from the
enemy occupation of Guam during World War II.
H.R. 4825, legislation authorizing Federal funding for Asian
and Pacific Islander Higher Education Serving Institutions.
Esther is a strong advocate for empowering communities by promoting
leadership and capacity building, sustainable solutions, economic-self
sufficiency, and business opportunities.
We unreservedly support Esther Kia'aina's appointment as the
Assistant Secretary for Insular Areas at the U.S. Department of the
Interior. We have no doubt that she will lead the department's efforts
in coordinating effective Federal policy and serve the people of the
Pacific region with commitment and distinction if appointed.
Sincerely,
GERALD S.A. PEREZ,
Chairman.
DAVID P. LEDDY,
President.
______
Hawaiian Affairs Caucus, Democratic Party of Hawaii,
Honolulu, HI.
Hon. Ron Wyden,
Chairman, U.S. Senate Committee on Energy and Natural Resources, 304
Dirksen Office Building, Washington, DC.
Hon. Lisa Murkowski,
Ranking Member, U.S. Senate Committee on Energy and Natural Resources,
304 Dirksen Office Building, Washington, DC.
Re: Esther P. Kia'aina Nomination (SB09366, 9:30a.m., 11/14/13)
Aloha Senator Wyden and Senator Murkowski,
As the Chair of the Hawaiian Affairs Caucus for the Democratic
Party of Hawaii, I am honored to offer the strong support of the
Hawaiian Affairs Caucus of the Democratic Party of Hawai'i for
President Barack Obama's nomination of Ms. Esther Puakela Kia'aina to
the post of the U.S. Department of the Interior's Assistant Secretary
of lnsular Affairs.
On a Federal level, Ms. Kia'aina has served as Chief of Staff for
Congressional Delegate Robert Underwood (D-Guam) and Congressman Ed
Case (D-Hawai'i) and has also served as Legislative Aide to Senator
Daniel K. Akaka (D-Hawai'i). After returning to Hawai'i, Ms. Kia'aina
led local, state, and Federal advocacy efforts as the Chief Advocate
for the Office of Hawaiian Affairs. Currently, she serves as the Deputy
Director of the Hawai'i Department of Land and Natural Resources
overseeing 1.3 million acres of public land. Ms. Kia'aina's state and
Federal experience in D.C. and the Pacific make her the ideal candidate
for this position.
Thank you in advance for this extraordinary opportunity to support
a friend and mentor to the members of our caucus, Ms. Esther Kia'aina.
Me ke aloha,
Kuhio Lewis,
Chair, Hawaiian Affairs Caucus.
______
Statement of Judith T. Won Pat, Ed.D., Chair. Committee on Education,
Public Library & Women's Affairs
My name is Judith T. Won Pat, Speaker of the 32nd Guam Legislature
and I am writing to express my strong support for the confirmation of
Ms. Esther Kiaaina as the Assistant Secretary of Interior for Insular
Areas.
President Obama's decision to fill the position of Assistant
Secretary for Insular Areas created new opportunities to strengthen the
relationship between the Federal Government and the insular areas. The
President's appointment has significantly improved communication and
coordination of Federal policy affecting these insular communities,
whose voices have often gone unheard. Thus, it is critically important
that the President's nominee has the depth of knowledge of policy
issues unique to the responsibilities of the Office of Insular Affairs
and the experience to understand the complex nuances of Federal-
Territorial relationships.
President Obama chose well by appointing Ms. Esther Kiaaina. She is
a young woman with a long and distinguished record of public service
and has served the Nation well in her past employment in Washington,
D.C., Hawaii and the Pacific Region. Her in-depth understanding of the
insular areas is beneficial to the continued strength and security of
our nation as the world leader of freedom and democracy. I am confident
that her long standing relationship with the leaders of the insular
areas will create a collaborative environment building bridges where
great divides existed between the Federal Government and the Insular
Areas.
Ms. Esther Kiaaina will make an outstanding Assistant Secretary for
our nation. I urge the members of the Energy and Natural Resources
Committee to confirm her appointment as the Assistant Secretary of
Interior for Insular Areas.
______
Statement of Sherry Campagna, CEO, Kamaka Green, Honolulu, HI
As you know, Esther Kiaaina will be heading to D.C. today to begin
preparations for her Nov. 14th confirmation hearing to be the Assistant
Secretary for Insular Affairs at the Interior Department.
I just wanted to send you a note letting you know that as a
Hawaiian business owner, Native Hawaiian, sustainability advocate,
human rights advocate and member of the YWCA's Board of Directors, I
wholeheartedly give Esther my complete support and I look forward to
her confirmation. She is without question the right person for this
job.
______
Kanakamoli Religious Institute,
Honolulu, HI.
Hon. Ron Wyden,
U.S. Senate, Committee on Energy and Natural Resources, Washington, DC.
Dear Chairman Wyden,
I am a member of the Native Hawaiian community, and have been
active in Hawaiian Affairs since 1980.
I participated in the NATIVE HAWAIIAN STUDY COMMISSION, in 1983 in
Washington, D.C., and also locally with the FEDERAL--STATE TASK FORCE
ON HAWN HOME LANDS; as well as many hearings with the AKAKA BILL over
the years since.
I have known ESTHER KIAAINA for decades during this extended
process, and consider her a valued colleague of great stamina and
wisdom, with Aloha, for her people and island home.
Hawai`i's role in the Pacific, at the apex of the Polynesian
Triangle, is expanding during this global pivot to Asia; and our shared
cultural, economic, and ecological concerns with all of the Pacific
islands are also increasing.
I full-heartedly support her Presidential nomination to the
position of; Assistant Secretary for Insular Affairs at the Interior
Department.
Mahalo nui loa, Ms.
Toni Auld Yardley.
______
Kauwahi'Anaina Hawai'i,
Hawaiian Civic Club, Provo, UT, November 11, 2013.
Hon. Ron Wyden,
Chairman, Committee on Energy and Natural Resources, U.S. Senate, 221
Dirksen Senate Office Building, Washington, DC.
Hon. Mike Lee,
U.S. Senate Member, U.S. Senate Committee on Energy and Natural
Resources, 316 Hart Senate Office Building, Washington, DC.
Dear Senator Wyden and Senator Lee.
Re: Nomination of ESTHER PUAKELA KIA'AINA as Assistant Secretary of
Insular Areas, United States Department of Interior
By way of introduction, Kauwahi'Anaina Hawai'i Hawaiian Civic Club
is located in Provo, Utah and is one of sixty-eight units established
nation-wide under the umbrella of the Association of Hawaiian Civic
Clubs, which is based in Honolulu, Hawai'i. The first Hawaiian Civic
Club was organized in 1918 by Prince Jonah Kalanianaole Kuhio, then
Hawai'i's delegate to the U.S. Congress, and a group of civic-minded
Hawaiian men who envisioned the pressing need for Native Hawaiians to
engage in the county, state, and Federal levels of government. Kauwahi
'Anaina's members, together with other Native Hawaiians throughout
Utah, continue to maintain strong cultural ties to Hawai'i while
simultaneously being effective and contributing residents prepared to
act on issues that affect our individual communities.
Esther Puakela Kia'aina is such a committed Native Hawaiin leader.
As Kauwahi 'Anaina's president, I am writing in support of Ms.
Kia'aina's nomination as Assistant Secretary of Insular Areas, United
States Department of Interior. She has had exceptional training in
schools of recognized excellence; a broad background in policy and
planning in Hawai'i, U.S. Pacific Territories, Freely Associated States
of Micronesia, and Asian and Pacific Islander issues; and applicable
experiences in and at the Federal level which repeatedly prove her
ability to administer all the responsibilities as Assistant Secretary
of Insular Areas.
After you have examined Ms. Kia'aina's credentials, we respectfully
request your approval, together with the other members of the Committee
on Energy and Natural Resources, of Esther Puakela Kia'aina's
nomination as Assistant Secretary of Insular Areas, United States
Department of Interior.
Mahalo (thank you),
CAROL N. JOHNSON,
President.
______
Barrigada Mayor's Office,
Hagatha, Guam, November 6, 2013.
Hon. Madeleine Z. Bordallo,
Guam District Office, Capitol Plaza Suite, 107, 120 Father Duenas
Avenue, Hagatna, Guam.
Nomination of Ms. Esther Puakela Kia'aina to serve as Assistant
Secretary for Insular Affairs, Department of Interior.
Dear Congresswoman Bordallo:
Hafa Adai and Greetings from Guam! On behalf of Vice Mayor Jessie
P. Bautista, members of the Barrigada Planning Council, please find
copies of our testimonies supporting the appointment of Esther Puakela
Kia'aina to serve as Assistant Secretary for Insular Affairs,
Department of Interior.
As you well know, Esther was born in Guam and attended San Vicente
Catholic School before departing to further he education. We are
confident that Esther will bring extensive expertise coupled with a
keen understanding of the issues facing the U.S. territories and the
freely associated states. More importantly, as a resident of Hawaii,
Esther has strong connections to Pacific islanders and with her
experience on Capitol Hill, she will be a tremendous asset to the
Department of Interior as the Federal govemment continues to strengthen
the health, safety and welfare of the Insular Areas.
Thank you for your time, and we appreciate your assistance in
insuring that our testimonies are submitted to the Senate Committee on
Energy and Natural Resources.
Sinseramente,
June U. Blas,
Mayor.
Jessie P. Bautista,
Vice Mayor.
______
Municipality of Barricada,
Barrigada, Guam, September 5, 2013.
Nomination of Ms. Esther Puakela Kia'aina to serve as Assistant
Secretary for Insular Affairs, Department of Interior.
Dear Chairman Wyden
Hafa Adai and Greetings from Guam! On behalf of Vice Mayor Jessie
P. Bautista, members of the Barrigada Planning Council, we extend our
congratulations and support of Esther Puakela Kia'aina to serve as
Assistant Secretary for Insular Affairs, Department of Interior.
Having grown up in Guam and Hawaii, we know that Esther Puakela
Kia'aina will be the strongest possible asset to the Interior
Secretary. After graduating from the University of Southern California
in 1985, Esther served as an intern to then Senator Daniel Inouye in
Washington, D.C. She also worked for then Senator Daniel Akaka during
the 1990's, and as a Chief of Staff for Congressman Robert Underwood of
Guam and former Congressman Ed Case.
When she returned to Hawaii, Esther Kia'aina served as a Land Asset
Manager for the Kamehamcha Schools before beginning her work for the
Office of Haw