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ENERGY AND WATER DEVELOPMENT
SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT
LINDY (MRS. HALE) BOGGS, Louisiana JOHN T. MYERS, Indiana
WES WATHINS, Oklahoma
HUNTER L. SPILLAN, GeoRGE A. URIAN, AARon D. Edmondson, and JoHN MIKEL,
Printed for the use of the Committee on Appropriations
COMMITTEE ON APPROPRIATIONS JAMIE L. WHITTEN, Mississippi, Chairman
EDWARD P. BOLAND, Massachusetts
SILVIO. O. CONTE, Massachusetts
FREDERIck G. MoHRMAN, Clerk and Staff Director
ENERGY AND WATER DEVELOPMENT
Thursday, February 26, 1987. DEPARTMENT OF ENERGY
JOHN S. HERRINGTON, SECRETARY OF ENERGY
Mr. Bevill. The Committee will come to order. Mr. Secretary, we are always pleased to have you appear before us with your fine group. You may proceed as you wish.
Mr. Herrington. Thank you, Mr. Chairman. Once again, it is an honor to be in front of this Committee this year. I would like to submit for the record a full statement, with the Chairman's permission.
Mr. Bevill. Without objection, it will be made a part of the record.
[The statement of Secretary Herrington appears at the end of this hearing.]
SECRETARY OF ENERGY
Mr. Herrington. And with a few brief opening remarks, we have with us today, first of all, a number of people, energy program directors.
Mr. Bevill. If you will raise your hand so we can see each of you.
Mr. Herrington. John Meinhardt from the Defense Programs.
Al Trivelpiece, the Secretary's Science Advisor, head of our science research, Dr. Trivelpiece, whom you have seen before.
Mr. Bevill. Many times, and we are always glad to see you.
Mr. Herrington. Donna Fitzpatrick, who is Assistant Secretary for Conservation and Renewable Energy. Dave Rossi n, who is our Assistant Secretary for Nuclear Energy. Ray Berube, from the Health Environment Office, and Del Bunch who has been intimately involved in the N-Reactor safety program and the upgrades that we are now going through in that particular area. They all appreciate the opportunity to bie here.
Our FY 1988 budget for the Department of Energy meets two important objectives, in my estimation: It continues strong support for essential programs in our energy, science and defense mission areas. And, two, it contributes to our efforts to reduce the growth in the Federal budget, and to meet the Gramm-Rudman-Hollings reduction totals.
The FY 1988 budget meets our increasing national security requirements. It maintains our commitment to priority programs, such as basic energy science research, environment, safety and health, nuclear safeguards and security, and clean coal technology development. The FY 1988 budget of $13.9 billion, which is a large sum, supports a level of program activity which is essentially unchanged from FY 1987. However, the request for new budget authority is higher in FY 1988, because the funds carried over from prior years are much less than they were in 1987.
The budget reflects recurring policy themes of this Administration: One, confine Federal support to activities which are properly the responsibility of the Federal Government.
Two, improve technology transfer, and obtain meaningful cost sharing with the private sector and with the States.
Three, divest assets which could better be managed by non-Federal entities.
Our budget reflects the Administration's strong support to frontier research and commitment to maintain and strengthen the Nation's scientific leadership and technological competitiveness.
SUPERCONDUCTING SUPER COLLIDER
The most dramatic evidence, of course, of this commitment is President Reagan's recent decision to support construction of the Superconducting Super Collider, the next generation in high energy physics.
This decision ensures that the United States will retain world leadership in high energy physics well into the next century. The site selection process, which you may well wish to ask about, was announced on February 10, at a press conference, and it should lead to a final site selection by, we estimate, January of 1989.
The target completion date for this project is 1996. Other major projects contributing to research efforts include CEBAF, which is the Continuous Electron Beam Accelerator Facility in the nuclear physics program and the Compact Ignition Tokamak in the magnetic fusion energy program. That, of course, is located in Princeton.
The budget request for the General Science appropriation which supports the SSC, CEBAF and other high technology major research facilities is $815 million. This is a 13 percent increase over the FY 1987 funding level.
ENVIRONMENT, SAFETY AND HEALTH
We continue major efforts that we began in 1985 to identify and correct past problems in the environment, safety and health areas, and to prevent current and future violations of safety and environmental standards in our facilities.
Our budget request for environment, safety and health increases 13 percent, to $70 million, with most of the increase applied to continuing the environmental survey that we started last year, as you remember, and technical safety appraisals of the Department's facilities.
The budget also contains a strong commitment to effective safeguards and securities at all of our facilities.
Mitigating acid rain is another major effort in our area. An initiative which will receive increased emphasis is our effort to find ways to burn coal more cleanly and more efficiently. In addition to a number of advanced techniques being studied in the fossil energy research and development budget we are proposing to increase our clean coal technology activities by drawing on funds in the clean coal reserve to investigate promising retrofit, repowering and modernization technologies.
STRATEGIC PETROLEUM RESERVE
Last August, the President affirmed his commitment to our Strategic Petroleum Reserve, and we have been filling that at a rate of 75,000 barrels a day in accordance with a law passed last year.
We have recommended in this budget that the mandated level be reduced to 35,000 barrels a day because of budgetary considerations. The language submitted with this budget authorizes this fill rate without jeopardizing the government's ability to continue producing oil at the Naval Petroleum Reserves.
The Department is renewing its efforts to divest activities which are more appropriately managed by non-Federal entities. In particular, we are proposing legislation authorizing the sale of Federal interest in the Naval Petroleum Reserves Number 1 and Number 3, and legislation authorizing a study of divestiture of the Southeastern Power Administration. Also, we will continue planning activities for the sale of the Alaska Power Administration.
NAVAL PETROLEUM RESERVES
For budget purposes, it is assumed that the Naval Petroleum Reserves could be sold in FY 1988 for $3.3 billion, with $2.5 billion received in FY 1988 and $.8 billion in FY 1989. However, the FY 1988 budget does contain a full year's funding for the NPR's.
POWER MARKETING ADMINISTRATIONS
Two power marketing administration assets are assumed to be sold in FY 1989.
Another initiative affecting the Power Marketing Administrations is repayment reform. The objective is to have debt repayment proceed on a proper, businesslike basis. While this initiative will not affect the level of Federal funding in support of the Power Marketing Administrations, it will assure that repayment of the Federal investment in the PMA facilities will occur on a timely, stable and predictable basis. Repayment reform will not increase interest costs or the total Federal investment to be repaid.
At this point, I would like to touch briefly on budgets for selected program areas. The FY 1988 budget request for fossil energy, conservation, research and development, solar and other renewables is consistent with our FY 1987 request to you.
We believe that adequate funds are being directed to the highest priority activities. The private sector can and should provide financial support for projects involving a proprietary product or process development. We are proposing to limit conservation grant funding