Hearing of the Energy and Water Development, and Related Agencies Subcommittee of the House Appropriations Committee - Fiscal Year 2012 Budget Request for Energy Efficiency and Renewable Energy, Fossil Energy, and Electricity Delivery and Energy Reliabili

Statement

Good morning. I'd like to call this hearing to order. The Subcommittee on Energy and Water Development meets today to hear testimony on the fiscal year 2012 budget request for the Department of Energy's research and development programs for energy efficiency, renewable energy, fossil energy, and the electricity delivery system.

I'd like to welcome Henry Kelly, the Acting Assistant Secretary for Energy Efficiency and Renewable Energy; Patricia Hoffman, the Assistant Secretary for Electricity Delivery and Energy Reliability; and Victor Der, Acting Assistant Secretary for Fossil Energy. I think we all look forward to your testimony.
It seems fitting to start the hearing by reminding ourselves of this nation's energy challenges. We import nearly two-thirds of the oil we use. Ninety six percent of our cars, trucks, and planes depend on oil, and with gas prices again creeping closer to $4.00 per gallon, our nation's dependence on imported oil is more alarming than ever. Electricity prices are also on the rise, and demand is skyrocketing in countries like China and India for the same energy sources we rely upon. These facts remind us of the importance of the issues we'll be considering today: our economy and our national security are tied up with our energy needs.

By having these three witnesses here today, we will have a chance to see the stark choices the Administration has made in picking technology winners and losers--not choices that everyone will support. The request proposes record increases for two of the programs before us: a $1.25 billion, 64 percent bump for energy efficiency and renewable energy, and a $79 million, 50 percent increase for grid research.

At the same time, the request slashes funding for Fossil Energy Research and Development by $183 million, a 29 percent reduction. Fossil energy generates more than 70 percent of our electricity, and especially since this program funds research into improving the efficiency and cleanliness of this critical energy source, we will ask you to justify your reduction to that program while you request record increases for others.

And while all of these programs are important to our national security and economic prosperity, so too is addressing our record-high national deficit. As Chairman Frelinghuysen has stated at each hearing this year, our Subcommittee must do its part to reduce spending and bring down the deficit, and it is highly unlikely there will be any new funding in fiscal year 2012 for the Subcommittee.

Given those fiscal constraints, I hope to focus today on how well the proposed increases could be spent at a time when reducing our deficit is our top priority and every dollar of federal spending must be justified. I must say at the outset that I do hope that you bring some better justification for the massive increases for energy efficiency and renewable energy. Your budget request is very thin for such substantial changes. We cannot assume we will have more money, and I look to the three of you to highlight the best investments and most promising programs for meeting our energy goals.

I ask that each of you please ensure that the hearing record, the questions for the record, and any supporting information requested by the Subcommittee are delivered in final form to the Subcommittee no later than four weeks from the time you receive them. Members who have additional questions for the record will have until close of business tomorrow to provide them to the Subcommittee office.

At this point, I'll turn to Mr. Pastor for any comments he may have.

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