Energy secretary ernest moniz talked before a house energy subcommittee. Also discussed the impact Climate Change has on Energy Security, as well as the aging u. S. Energy grid and the areas that should be prioritized. This runs two hours. This hearing will finally come to order. Obviously, four votes and members going home have put time crunch on this committee. I want every member to know whether youre republican or democrat, ten terms or first term, youll have a chance to ask our witness your questions. But that means ill be very aggressive with the gavel to ensure you stick to the fiveminute limit. And heres my example. Im giving myself five minutes for an Opening Statement. America is back. We are an energy superpower. That statement would have sounded odd a handful of years ago, and laughable in the 1970s. But the fact is, we are awash in energy. Today, we are the worlds leading producer of oil and gas, and were less reliant upon foreign sources of energy. Our resources are plentiful and affordable. So affordable that low prices have become a common complaint back home in houston, texas. Except from my daughter in college who now has more money from her allowance instead of buying gasoline, she goes to starbucks more often. This subcommittee has been hard at work to bring Energy Policy into the 21st century. Were beginning to see positive effects. Since we lifted the ban on crude exports last year, american oil is spreading all across the globe. Were undercut opec, russia, helping our allies and giving American Workers an opportunity to compete. Natural gas imports are ramping up as well. A trend thats likely to continue if we get the process right. Unlike other energy commodities, you have to ask d. O. E. For a permit to export natural gas. Unfortunately, these are applications that have been held up at d. O. E. And sometimes for at least three years without a decision. These delays are jeopardizing Major Construction projects and threatening american jobs. We have the opportunity for jobs and Affordable Energy right here at home and to our allies abroad. But theres still much work to be done. Its hard to build infrastructure in this country. Yes, my own state of texas has plenty of oil and gas to serve our homes and businesses but our friends in new england face gas shortages and price spikes because its almost impossible to build a pipeline. In other parts of the country, people pay more than they should for electricity because of harmful epa regulations. Were using our Energy Conference with the senate to examine ways to improve infrastructure permitting, plus a whole host of other topics such as grid and cybersecurity, Energy Efficiency and workforce development. Likewise, we are in an era of abundance of homes in emergency preparedness. For example, the Nations Strategic Petroleum reserve, the spr, is aging rapidly. In the d. O. E. s longterm strategic view released last week, raise very serious issues about the ability of the spr to meet its mission. According to the report, the spr may only be able to effectively distribute about half as much of the oil its designed to supply in an emergency. One half. Congress has authorized 2 billion for infrastructure modernization. Before that can be approved, we need the department to be open and transparent about the condition of spr and the funds required to rehabilitate it. We want to make d. O. E. A bigger part, critical part of our Emergency Response. And thats why we used last years fast act to grant new emergency authorities for procedures to act in some specific cases. However, these limits there are limits to its authority that we give d. O. E. A new request will be closely scrutinized. Again, thank you for joining us today, mr. Secretary. I am proud this hearing, just like last weeks, will mostly be bipartisan. An Energy Economy that brings jobs and creates security at home with opportunities to advance our interests overseas. And i yield back the balance of my time and recognize the Ranking Member of the full committee, mr. Pallone for five minutes. Thank you, mr. Chairman, for holding todays hearing, evaluating the work on Energy Security here in the United States. And id like to welcome secretary moniz back and thank him for his efforts to provide us with a more secure Energy Future. This is an important topic, but our energy mix changes. We can no longer simply look at oil supply when we think about Energy Security. Our country must take a broader approach that encompasses cleaner energy technologies, including Renewable Energy technologies which are becoming more affordable. Beyond the relates of our energy mix we must recognize the impacts Climate Change is having on Energy Security here in the United States and abroad. Our nation is not alone in this. The g7 Energy Initiative states that reducing emissions from fossil fuels is necessary to tackle Climate Change and can enhance our Energy Security. Simply put, an Energy Future that redurss our Carbon Emissions and reliance on fossil fuels is a more secure Energy Future. Simply recognizing and identifying issues affecting our Energy Security is not enough. We must take real action to enhance and protect our Energy Infrastructure. Ive championed two critical proposals built out of the review, one that supports state efforts to modernize the electricity grid and the other to encourage investment in the repair of old leaking natural gas Pipeline Infrastructure in major metropolitan regions. And to make our Energy Future more secure, we must make serious investments in our aging and often outdated Energy Infrastructure. Id be remiss if i did not mention the Ongoing Energy bill conference. Along with my colleagues who sit on the conference committee, we have started the difficult process of merging two very different bills. While some progress has been made, theres still many contentious issues to be resolved. Ive made it clear one of my Top Priorities in any final Energy Conference report is to address some of the items in the qer. The Energy Sector in 2016 looks vastly different than the last time we passed major energy legislation. Changes in energy markets, new technolo technologies, improved efficiency and shifting consumer demand are transforming how we think about Energy Security. Secretary moniz, i want to thank you for bringing this conversation to the forefront and for your work to bolster our energy and Overall National security. I look forward to your testimony, and id like to yield the remainder of my time to mr. Mcnerney. I want to thank the chairman for holding this hearing. Energy is an issue i care deeply about. Im glad to have a chance to hear from secretary moniz. Mr. Secretary, im always happy to have you in front of our committee to give us the latest information on whats happening at the d. O. E. And around the country in the Energy Sector. I doubt if anyone in our country is more knowledgeable than you are. And you have the gift of being able to reverse the Political Landscape without too many scars to show. So congratulations. Our Nations Energy system works reasonably well most of the time providing electricity, natural gas, oil and coal reliably and at an affordable cost. This has been one of the foundations of our nations economy and security. Because of this, most people take our Energy System for granted untilion takes place, large Power Outages or climatecaused disasters. Its our and your responsibility, mr. Secretary, to make sure that the Energy Systems continue to operate smoothly and reliably. This means the proper Regulatory Framework be in place to encourage the investments needed to keep our Energy Systems operating and up to date with the challenges we face of new technology, changing demand and changing generation, new sources of oil and gas, retiring Nuclear Plants and the different threats to our Energy Systems. The quadrennial Energy Review along with other stat uts such as the fast act and pending north american Energy Security and investment act are designed to make sure that we succeed in keeping our Energy System in good condition. And that brings us to todays hearing. Mr. Secretary, i look forward to your testimony and to the back and forth that will follow to help me increase my understanding of our successes and of the challenges that remain. Mr. Chairman, i yield back. Right now its time for our distinguished witness to speak for five minutes. Mr. Moniz is our secretary of energy, a regular here at the committee. An invitation in december to come to texas and see the petronoma programming. Thats the first Carbon Capture situation in the whole country. So invitation and five minutes to give your Opening Statement. Thank you, vice chairman olson and Ranking Member pallone, members of the subcommittee. Im very plies pleased to be he discuss our role in Energy Security. U. S. Energy security must be considered in the context of the changing energy profile, the evolving threat environment and the Global Security challenges facing our country and our allies in various regional settings. The u. S. Is now the number one producer of liquid fuels and natural gas in the world. But remains a major importer of crude oil. The unconventional production locations of the new supply creates infrastructure challenges and the spread between u. S. And european and asian Natural Gas Prices has been reduced considerably. Renewable technology is rising rapidly as costs continue to fall. Energy efficiency policies and technologies are contributing to slow growth and demand for electricity and flat or declining demand for oil, even as our economy grows. Natural gas has replaced coal as the largest fuel source for power jeoperatiogeneration. This changing landscape faces an evolving set of threats as well. And the structure and nature of our Energy Emergency responses must keep pace with reality. We know adversaries and homegrown actors are interested in the vulnerabilities of our Critical Infrastructures. Severe weather, exacerbating by warming and rising seas. Emp, aging infrastructure, cyberthreats, and growing infrastructure interdependencies. They are in our laws and orders designed to protect our citizens and economies from those from menev lent intent and from natural disaster. Challenges like these underscore the need to rethink Energy Security, the subject of this hearing. In june 2014, the g7 and the eu endorsed seven modern Energy Security principles. These principles are premised on the recognition of Energy Security as a collective responsibility among allies and friends. The first two principles te s with market structures, diversification of fuels and routes, including indigenous sources. The next three highlight the transition to a low Carbon Economy through clean energy and efficiency, innovation and deployment as key to enduring Energy Security. And the last two principles deal with the need for Energy Infrastructure resilience and Effective Response to disruptions of all types, including the need for strategic reserves. We have appreciated working with this committee and with congress more broadly in responding to some of the resilience and response challenges and as called for, the fast act, are working with the department of state on an Energy Security evaluation strategy. Study, excuse me. In the remainder of this Opening Statement hyme going to highlight a few points in my written submission. On oil, first, even with strong domestic production, the u. S. Remains directly tied to Global Oil Markets price volatility and potential market disruptiops. Second, the Strategic Petroleum reserve remains essential to ensuring the u. S. Economy can withstand spikes in petroleum prices. The administration recommended and the qer and congress authorized through the bipartisan balanced budget act an investment of up to 2 billion in facilities and Marine Terminal infrastructure modernization. The longterm Strategic Review of the spro required by that act was submitted to congress in august. Natural gas. The key issue with natural gas and Energy Security is the progress towards Global Natural gas markets principally through lng developments. Increased u. S. Natural Gas Production has contributed to a more financial lly liquid and Natural Gas Market which has improved Global Security for u. S. , our neighbors, partners and allies. Physical exports of lng started in february of this year. Four more facilities are under construction. The u. S. Entry into world lng markets will also put downward pressure on european gas prices and could constrain the noncompetitive practices of russia. The widening of the panama canal is coincident with growing u. S. Lng exports thereby lowering supply chain costs from the gulf to the pacific basin. Electricity. The grid faces a lot of new demands based on new technologies for both generation and distribution and the need to address a new set of vulnerabilities, institutional inertia, a complex jurisdictional environment and a mix of Delivery Service models. The second installment of the qer due later this year will examine the issues confronting the nations electricity system. It will make policy recommendations on a range of issues, including the changing generation mix, low load growth, increased vulnerabilities, to Severe Weather and Climate Change and cyber, new technologies emerging, fiscal threats and cyber, aging infrastructure, jurisdictional issue, Value Creation and the need for an integrated north american electricity market. D. O. E. s Grid Modernization Initiative complements the qer analysis by providing technology and systems solutions. The majorities of our National Labs are directly involved in this. A key dimension of our efforts is our engagement with industry. Especially through the Electricity Subsector Coordinating Council that brings together key federal agencies and Electricity Sector leaders around resilience and Emergency Response issues. Finally, the question of emergency authorities. With the fast act of last year, congress provided d. O. E. With a new authority to protect and restore Critical Infrastructure when the president declares a Grid Security emergency. Enabling d. O. E. To support preparation for and response to cyber, emp, and physical attack threats. The fast act also noted the critical nature of large Power Transformers and requires a Feasibility Study of a strategic transformer reserve which we will complete by the end of the year. President ial policy director of 21 identifies d. O. E. As the Sector Specific Agency for Energy Infrastructure. As that, we serve as the daytoday federal interface for the prioritizization and coordination of activities to strengthen the security and resilience of critical Energy Infrastructure. In addition, we serve as the lead agency for Emergency Support function 12 under the National Preparedness systems, National Response framework. So we are responsible for facilitating recovery from disruptions to the Energy Infrastructure. We look forward to working with congress now on the alignment of authorities, responsibilities, resources and organization. In conclusion, its clear that Energy Security has many dimensions and Global Market structures on the low carbon Energy System, transition and spps to a changing threat environment. Vice chairman olson, Ranking Member rush, Ranking Member pallone, members of the committee, i look forward to continue work with the committee and to setting the stage for the next administration and beyond. I look forward to our discussion. Thank you, sir. Thank you, sir. And well begin questions with myself. Five minutes for questions. Okay. Last year, the bipartisan act. They are provisions for the spr and improve its Emergency Response capability. One of the requirements was for d. O. E. To complete a longterm Strategic Review and report to congress. That report is out, as you mentioned, and raised some serious questions about the ability of the spr to meet its mission. My first question is, how much oil are we supposed to have to be able to draw down from the spr if we have an emergency . You mean the design drawdown rate is just over 4 Million Barrels a day. Whats the actual draw down rate . That depends on the specific circumstances, but, of course, the whole point of the modernization of the spro is to improve our sbrksal capability which has been compromised ironically by the very increase in production that we have seen in oil. But your report showed the actual draw down rate is more than 2 Million Barrels a day below the designed draw down rate of 4. 4 Million Barrels a day. Are you concerned by this . Were going to increase that with the project the congress has authorized. Weve submitted our appropriation request for the first tranche. If i may add, its urgent that the approved because the authorization is only for four years. We really need to get on with the project. To make sure the spr is viable. Any ideas . To make sure its viable . Prove its ability. Modernization and building new marine distribution infrastructure in the gulf region. Details, great. Second line of question, both the house and senate have passed Bipartisan Legislation to streamline process for lng exports. There is more than one legislative option to push that across the finish line. The house would like to see it included in the defense spending bill. Its also in consideration in the Energy Conference. Do you agree that lng exports offer wide ranging benefits to the economy, Energy Security and maybe even the climate . The natural interest determination you make is precisely the answer to those questions. So far weve approved and frankly since our change in the process in 2014, we have approved quite speedily every application that is ready for action. The idea that we are somehow dragging this out is simply incorrect. The National Interest determination requires us to get the appropriate information, inclu including for example action. We have acted on all of the applications and until now weve approved them all. So and weve approved them since our streamlining of the process in 2014. We have approved them as short as one day after having the ferc action to a few weeks. That sounds like a benchmark over and over and over. I think one day over and over would be stretching creduality since there are questions we have to answer, but we have been committed to expeditiously addressing these applications. Thank you. My final question, what areas of the permitting process need the most improvement . Why does it seem to take longer to permit midstream Energy Infrastructure pipelines to pass site and approve drilling rate and also power stations. How come they are different than pipelines . How come up stream is different than down stream, midstream . I think Energy Infrastructure as a whole, the congress has, frankly, distributed responsibility for different elements of infrastructure among multiple agencies. Dea, department of energy, department of state has some. Those particular issues that you raise certainly are not in department of energys bailiwick. Should they be in your bailiwick . You be the big king of the jungle, so to speak . I think that would be an interesting discussion between the congress and the administration. Thank you. Thats my questions. I yield to the Ranking Member. Okay, to mr. Pallone. Ranking member of the full committee for his five minutes of questions. Mr. Secretary, i wanted to ask you some questions on lng, particularly related to language in the energy bill on lng exports that is concerning me. Applications for lng export have been increasing in recent years. Since revising the approval process for lng applications in 2014, d. O. E. Has been able to quickly approve applications after ferc completes their review. Is that correct . Yes it is. Typically how long does it take d. O. E. To turn these applications around . Its been between a day and a few weeks since 2014. The Energy Conference is considering two provisions that would require d. O. E. To approve an application for export within 30 days of ferc
comparemela.com © 2020. All Rights Reserved.