Subcommittee on Energy and Water Development Markup - Fiscal Year 2010 Energy and Water Development Appropriations Act

Statement

Date: June 25, 2009
Location: Washington, DC

Statement of Congressman Edward Pastor

Subcommittee Markup: Fiscal Year 2010 Energy and Water
Development Appropriations Act

The fiscal year 2010 Energy and Water Development Appropriations Act provides an opportunity to continue support for critical issues that affect our economic vitality, environment, and national security.

We continue to struggle with consequences of past choices regarding energy policy. The impacts of these choices are clear to every American - high gas prices, pollution and a dependence on foreign oil that puts our national security at risk. The same lack of vision regarding our infrastructure has resulted in detrimental impacts to our economy through inefficiencies in our marine transportation system and flood damages that could have been avoided. This bill continues support for all areas of energy, makes major investments in critical infrastructure, advances our nonproliferation efforts and continues support to securely maintain our nation's nuclear weapons stockpile.

Given the significant energy and water development needs of our country, total funding for energy and water development in fiscal year 2010 is $33.3 billion. This funding amount represents a decrease of $1.1 billion below the President's budget request and $39 million above the amount appropriated in fiscal year 2009. While the funding is below the President's request, the legislation provides more than $400 million in direct program scope above what was proposed in the budget.

At the outset, let me thank Mr. Frelinghuysen, the Ranking Member, for his insight and partnership on this legislation. He and I have worked to ensure the Energy and Water Subcommittee continues its tradition of bipartisanship - the Subcommittee has operated collaboratively and effectively for many years and I believe we were able to continue in that vein this year.

I would like to thank the other members of the Subcommittee for their hard work and input while drafting this bill and for the teamwork they put forth in the hearings we held. The work of each Member of this Subcommittee has been commendable.

I also thank Chairman Obey for his leadership and support at the full Committee, which enabled us to fill the gaps in the President's request. And I thank Ranking Member Lewis for his leadership on the Committee.

I always say that I try to put people before politics. This bill is consistent with that goal. It balances the needs of our country across the bill's broad portfolio of activities, ranging from water projects, to environmental clean-up, to super-computing.

Addressing High Gas Prices
For the fiscal year 2010, the Energy and Water Development appropriation includes nearly $1 billion to contribute to solutions for addressing rising fuel prices. This funding, in addition to investments made through the American Recovery and Reinvestment Act (ARRA), provides for research, development, demonstration, and deployment of energy technologies that increase vehicle efficiency, advance new alternative fuel technologies for next-generation biofuels, and help the nation reduce its dependence on petroleum-based fuels. While funding through these appropriations will not reduce fuel prices immediately, these funds are the investment necessary to find lasting solutions. On a five- to ten-year timescale, these investments should reduce demand for oil, increase supplies of alternative motor fuels, and make American consumers and businesses less dependent on fluctuating prices for fuel from foreign sources.

Ensuring Effective Project Management
This Subcommittee has long pushed the Department of Energy on management and cost issues. The bill before us today continues to stress that point to the new Administration and directs the Department to continue to work with the Government Accountability Office (the GAO) to implement its recommendations. The Department continues its 18-year membership in the GAO's annual list of programs that are at high-risk for fraud, waste, abuse, and mismanagement. While the Department has made progress, recent history has shown that there is substantial room for improvements. The GAO, for example, concluded that nine of the ten largest environmental clean-up projects at the Department were over cost and experienced schedule delays.

Renewable Energy
Our nation's energy, environmental, and security challenges—from rising gasoline prices to the threat of climate change—require that we use our existing resources more efficiently and develop new, clean and affordable energy supplies. Increasing the efficiency of our homes, cars, businesses, and factories can help our nation move forward without burning another pound of fuel or drop of gasoline. Our nation also has vast, untapped renewable resources which could supply clean electricity and fuels for current and future generations. This Subcommittee continues to support the advancement of innovative technologies in these areas by providing $2.25 billion for energy efficiency and renewable energy.

Hydrogen fuels are one of a small handful of pathways that may reduce our nation's dependence on petroleum transportation fuels. The bill provides $40 million for hydrogen-powered transportation systems, as the nation must continue exploring all viable options to meet our pressing energy challenges.

Coal and Nuclear Energy
We can talk about renewable energy sources—in Arizona I have a lot of sunlight to harness into power.

However, there is no escaping that coal and nuclear energy continue to be the largest suppliers of
electricity for this country. Therefore, we need to invest in making these energy forms cleaner and safer. These technologies will help U.S. economic competitiveness and position the United States to help other countries mitigate global climate change.

The Fossil Energy appropriation is $618 million, the same as the request. This funding supports a variety of research and development efforts to advance lower-emission coal power including carbon capture and storage and developing more efficient fuels.

For nuclear energy, the bill provides $812 million. The funding level supports a number of the
Committee's priorities on near-term deployment of nuclear technologies, including completing the commitment to the Nuclear Power 2010 program with $71 million and providing $245 million for the Next-Generation Nuclear Plant (NGNP). The NGNP holds commercial potential to produce electricity and steam for industrial purposes that fossil-fuel burning electrical plants supply today. This bill is a measured commitment to positioning nuclear energy to play its appropriate role in the nation's energy future.

Investments Contributing to the National Electricity Grid
The Department of Energy has a long history of innovation in electricity generation technologies. While power generation is critically important, most American homes won't see a single light bulb glow without a functioning electricity grid. This bill recognizes the importance of an efficient, reliable, secure, and flexible transmission and distribution grid by increasing funding for electricity delivery and energy reliability to $208 million, 52% above last year's level.
More than 7% of energy is lost in transmission between power generation plants and the homes and businesses they serve. The national grid is aging and congested, but emerging technologies promise to modernize the grid and reduce transmission losses. This bill increases funding by more than 50% for research and development of technologies that will increase the efficiency of the grid, allow the integration of domestic renewable energy, and enable the electrification of the transportation sector.

The bill more than triples funding for grid-connected energy storage, which has the potential to reduce the need for expensive and inefficient peak power sources and accelerate the growth of renewable energy.

Science
The bill provides $4.9 billion for the Office of Science, essentially the same as the President's request and $186 million above fiscal year 2009 enacted. The bill fully funds the authorization of the America COMPETES Act through fiscal year 2010, to help the United States continue its global leadership in many areas of science, and attain leadership in others to help solve the world's energy and scientific challenges. It adds $20 million to the Fusion Energy Sciences Program, taking the United States a step closer to the goal of large-scale clean energy independent of weather and foreign sources.

Confronting Nuclear Threats
Denying terrorist and dangerous states access to nuclear weapons requires a multi-faceted effort to block the multiple pathways to acquiring nuclear weapons in the first place. This begins with diplomacy and working overseas to secure nuclear weapons, materials, technology, and expertise at the source. The Department's request of $2.1 billion included $666 million for the Mixed-Oxide Fuel Fabrication Facility and the related-Waste Solidification Building at Savannah River.

The bill supports the full request but directs that these projects be executed in the Other Defense Activities account. This shift ensures that the remaining $1.5 billion of overseas nonproliferation activities is the focus of our attention and is not eroded by cost-overruns that might occur in the domestic construction projects. The International Nuclear Material Protection and Cooperation program that works in Russia and elsewhere to secure nuclear material and enhance border and port security receives $592 million, $40 million above the request and $192 above the fiscal year 2009 enacted.

Preventing the threat posed by nuclear weapons is a task not only for Nuclear Nonproliferation, but for Nuclear Weapons Activities as well. Accordingly, the bill increases the weapons dismantlement rate by more than 40% from the request. It also increases $40 million from the request for safeguards and security throughout the nuclear complex.

The Committee recommends $6.3 billion, a decrease of $64 million from the request. It does not fund the Administration's request for the B61-12 nuclear bomb, because the Executive Branch has yet to meet the requirement for nuclear strategy, stockpile, and complex plans that we first directed in fiscal year 2008.

Environmental Cleanup
Cleaning-up the legacy of our nuclear weapons complex and other nuclear activities is an obligation we have to current and future generations. The fiscal year 2010 appropriation provides:
• $5.4 billion for Defense Environmental clean-up, $114 million below the request;
• $238 million for Non-Defense clean-up, the same as the request;
• $560 million for Uranium Enrichment D&D, the same as the request;
• $190 million for the Office of Legacy Management, the same as the request.

Improving our Water Infrastructure
The Administration's request for the Corps of Engineers is the most robust of any in the history of the Corps. While the Committee continues to believe that the budget level is inadequate to meet the existing needs of the nation, the level requested by this Administration is far better than past requests. The Congress included $4.5 billion for the Corps of Engineers in ARRA, and the Committee recommends additional resources above the President's request in the fiscal year 2010 bill to address this nation's water resource investment needs. These investments will provide increased transportation efficiency on our nation's waterways, job creation, clean water, and, most importantly, ensure the safety of our citizens.

The bill also recognizes the increasing cost of aging infrastructure through significantly increased funding for the operation and maintenance of existing projects.

As our national discussion on energy and carbon emissions moves forward, the carbon footprint of different transportation modes and the methods by which we generate our electricity must be considered.

Our national waterways are an efficient mode of transportation from both a carbon emission and fuel consumption standpoint. The Committee is concerned that the fiscal year 2010 budget request reduces the budget for navigation from 40 to 34 percent of the total budget request and provides additional resources to address this need.

The Committee reiterates its position that legislation must be pursued to address the insolvency of the Inland Waterways Trust Fund. If the revenue stream is not addressed, the level of investment must be adjusted to the available resources—resulting in increased costs to existing projects as they are suspended, as well as the deferral of new projects in need of recapitalization. The bill urges the Administration to pursue this issue with the relevant authorizing committees.

Conclusion
At this time, I would like to ask if our Ranking Member, Mr. Frelinghuysen, has any comments he would like to make, after which, I will recognize Mr. Obey.


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