He was also asked about his use of chartered aircraft as Energy Secretary. This is three hours. [indiscernible] take your seats please. The chair will recognize himself. Five minutes for the opening statement. Welcome mr. Secretary, it is great to have you here. The hearing will examine the department of Energy Management adMission Priorities under the leadership of secretary rick perry. Im very pleased to welcome him this morning for his first appearance before this subcommittee. D. O. E. Performs essential security missions. It plays a central role in ensuring that the nations Domestic Energy security. And also stewarding americas Strategic Energy interests in the international markets. Ensuring the nations Domestic Energy security and sorting americas Strategic Interests in the international markets. It performs challenging cleanup operations to address its vast environmental and Nuclear Waste liabilities and provides key energy data and supports foundational science and Technological Development to advance the benefits of all forms of energy and Energy Delivery to ensure the longterm security and prosperity of americans. Success of these diverse decisions requires sound management and robust authorities. Success also requires focused attention and Budget Resources to address the most pressing priorities in light of current and anticipated energy and security situations. In this context, this hearing will help the committee gain insight into the secretarys priorities regarding the department. It also will help the secretary understand our perspective on priorities as we see as essential for does Mission Going forward. Key priorities include d. O. E. s role, the reliable supply of energy and the Strategic Value of our Domestic Energy resources and energy technologies. The changing Energy Landscape in the u. S. Has produced profound impacts on how our National Security policies and its respective departmental missions should be oriented. Although we are in an era of Domestic Energy abundance, new threats to Energy Security have been growing and requiring more urgent attention. In the previous congress, the committ committees work along these lines formed a mag gnat of several bills to address emerging threats and to update the policy and security priorities. We enacted legislation to support modernizing sproe to improve its Emergency Response capability. We enacted other provisions for d. O. E. To improve Emergency Preparedness for Energy Supply disruptions, protect Energy Infrastructure physical and Cyber Security and prioritize Energy Security and federal decisionmaking. We also lifted the 1970s era export restrictions on crude oil. Were continuing in this congress to move policies that enhance the delivery and supply of energy. Were also taking a comprehensive look at electricity, market structure, and recent developments and challenges for way that we generate, transmit, and consume electricity in the nation with an eye towards updating the relevant laws governing our electricity sector. With the able assistance of vice chair joe barton, we will be looking at just what is necessary to ensure d. O. E. Is positioned for new energy and security challenges. All of these efforts aim to update the Nations Energy policies to ensure more secure, reliable, and affordable energy. In recent weeks the secretary has demonstrated d. O. E. s nationally ref really well vant roles regarding security and liability. A series of devastating hurricanes hitting texas, florida, and puerto rico highlighted the vital nature of robust systems and the Emergency Response capabilities. From all accounts the departments served the emergency efforts well and i look forward to learning more what d. O. E. Can do to serve the interests of affected areas, particularly puerto rico prp the secretary demonstrated he is willing to take action in the area of electricity market regulations. This is an area that the Energy Subcommittee is currently engaged in with seven hearings thus far under our belt including two last week. While i reserve judgment on the policy solutions the fact that the secretary stepped into this complicated debate reflects the current need to have a broader conversation about the functioning of the nations electricity markets, whether it be Severe Weather interventions through the tax code or through federal and state and Environmental Policies and mandates, all have played a complicated role in the Market Driven economic outcomes affecting the Generation Profile of the power grid. Reliability and resiliency are important attributes to begin the conversation, but none of these issues can be addressed in a vacuum as economics, technology, security, and how do to address other externalities such as environmental attributes all will have a role to play. We look forward to working with d. O. E. And ferc on these issues as we oversee the process, the rise of seiber, transformation of power generation, the regulatory challenges that continue to affect the cost and availability of all energy, all require a strong voice on National Energy policy. That is what congress envisioned for d. O. E. 40 years ago, and it is still important today. I yield to my friend and colleague the vice chair of the subcommittee, mr. Rush from illinois. Five minutes. He switched parties overnight. Its the front page of politico, the Ranking Member. I know he probably preferred to be vice chair. Not vice chair plaintiffs exhibit chairman. I want to switch parties to become a svice chair. Mr. Chairman, thank you is much for holding this long overdue hearing on the department of energys missions and management priorities. Mr. Secretary, you have the distinction of being the first agency head of the Current Administration to actually come before this subcommittee. I also want to thank you for gracing us with your presence here today. Mr. Chairman, as we know, a Budget Proposal highlights the priorities within an agency, and i must say that i have many, many concerns with the fy2018 Budget Proposal put forth by this administration. For starters, there are devastating proposed cuts to some of the most federal investment in clean Energy Programs, power grid operations, next gen energy technologies, and cyber tech management for energy assistance. The president es d. O. E. Budget [ inaudible ] and Renewable Energy by 70 while eliminating assistance completely. Mr. Secretary, as a former governor, im sure you understand that getting rid of so many lowincome families nationwide is a nonstarter for me and many members of congress on both sides of the aisle. Initially, mr. Chairman, the research of this agency also be terminated in the president s budget, although it makes absolutely no sense to eliminate a program thats spurs Innovative Energy technologies that could lead to major advancement in how we produce, store, and consume energy. These findings have led to 1. 8 billion in private funding and launched more than 50 new Companies Since its inception. Additionally, the office of science with 17 National Laboratories would face a 1 million or 17 decrease from fy17 levels namely impacting the Worlds Largest single investment in basic research. Mr. Chairman, while i am concerned regarding the leadership in these labs and the agency itself for that matter, i cannot support the steep cuts proposed in the president s budget. The Budget Proposal would even cut Energy Research by more than half. Even as the president has sold his support es on the idea of saving coal. Mr. Chairman, instead of trying to tip the scales and deal with any specific industry as the most recent illadvised it makes more sense to invest in the technologies of the future to create jobs at home which also can be sold overseas. Mr. Chairman, i look forward to hearing secretary perrys vision for the 21st century and majority of stake holders that we have heard from during our entire power america series. These expert who is represent technology companies, consumer advocate groups all agree that Customer Behavior is a driving force in shaping what the world will look like in the future. These consumerdriven trends include access to native and more control over their energy use, a greater demand for cleaner, renewable sources of energy to compete with traditional fossil fuels and increase in this generation Battery Storage and demand resources, more Energy Efficiency initiatives as well as a demand for lower energy costs. So, mr. Chairman, i really look forward to engaging secretary perry on this vision for his department that some wanted to infamously abolish. I yield back. Chair recognizes the chairman of the full Energy Commerce committee for an opening statement. Thank you, mr. Chairman. Mr. Secretary, welcome to the energy and commerce committee. Were delighted to have you here to share your thoughts and view with us and answer your questions. We appreciate your leadership. I understand the d. O. E. Held a ceremony yesterday to celebrate its 40th birthday as cabinet agency. I think youd have to agree lots has changed in this country and in the world since congress created the department of energy, especially in the National Security and Energy Security space where d. O. E. Provides critical functions for country. While the domestic and interNational Energy posture is substantially different from the 1970s i do not believe the importance of d. O. E. s role serving the nation and Public Interest has diminished. This past august secretary perry joined me at an Energy Roundtable with local officials and Energy Leaders at mcnary damn in oregon wh which plo prodeuces power for bonneville power administration. Secretary perry i did not leave the county without one of our famous watermelons which i know you enjoyed. The best in the world. I believe secretary perry also left with a greater appreciation of the tremendous zero carbon emitting power resource thats helping grow the economy throughout the northwest and in oregon pip think you learned texas wasnt the only big open wide space around that poses difficulties getting to as we crisscrossed the great northwest. The next day i had the pleasure of accompanying the secretary to d. O. E. s north wes National Laboratory then to the hanford site up the cluster bomb Columbia River from my own district in oregon. Couple of observations from that visit are pertinent for today. First it was evident that Abundant Energy was critical to the success of hanfords operations which built Nuclear Reactors and produced plutonium. Second, hanford and its cleanup operations led to advances in engineering practices, research and development and scientific activity necessary for the sites safe and secure operations. I was pleased to see the improvements being made in the cleanup there. That hadnt always been the case. These advances led to development of a world class National Laboratory and today the Pacific Northwest national lab in collaboration and partnership with d. O. E. s 16 other National Laboratories, theyre spread out in remote places around the world or the country, provide scientific and technical breakthroughs to meet our National Security and Energy Security needs from securing our electric grid to advancing storage technologies. So as we examined the d. O. E. Management and Mission Priorities today, build on the work theyve asked vice chairman barton to undertake with you to look at what a 21st Century Energy department should look like, weshtd keep in mind the benefits of the interconnected nature of the departments missions. But these missions can be expensive and difficult to manage. So it is the responsibility of the secretary and this committee and congress to ensure the department is appropriately aligned to perform these missions in a Cost Effective manner and to the maximum benefit of the taxpayer. Chairman upton has indicated the Energy Threats today are not same as those from the 1970s but they remain significant. The opportunities do as well. This committee will work in the coming months and through this congress to ensure the Departments Organization and missions are aligned with the Energy Security challenges of our generation. As i said at my direction the vice chairman, not Vice President , has already started to facilitate in coordination with the Energy Subcommittee work tone sure that d. O. E. Resources are focused on a core mission of nuclear and Energy Security, environmental remediation, Mission Enabling science and r d programs. At the same time, the committee will be examining expired d. O. E. Authorizations, many of which expired a decading a tone sure more program alignment. I look toward forward to your testimony and it will be help to feel both sides in our work here in the energy and commerce committee. Id also like to ask you to address the recent questions thatch arisen regarding travel expenditures as part of your discussion with our committee today. In closing, i look forward to working closely with d. O. E. And my colleagues as well as we ensure the agency is positioned appropriately for the Energy Security challenges that lie ahead. Again, were delighted to have you here today, mr. Secretary. Have enjoyed working with you along the way and we look forward to your testimony and the answers to our questions. A yield back the balance of my time. The gentleman yields back. The gentleman from new jersey. Thank you, mr. Chairman. Welcome, secretary perry to the committee. Were pleased to finally have you here. After all its now the middle of october and you were the first cabinet member we of had before us this year so, i hope this is the start of a trend. Mr. Secretary, there is certain lay lot for us to discuss today, particularly your recent proposal to upend competitive electricity markets by providing unduly preferential rates to coal and other base load generation. The substance of that proposal has serious flaws in my opinion, under the guise of the crisis of grid reliability, this proposal props up coal and Nuclear Generation with the goal of from texting fuel secure plants that have 90 days of fuel stored on site. The d. O. E. s own grid report issued earlier this year stated that electricity markets, i quote, currently function as designed to ensure reliability and minimize the shortterm costs of wholesale electricity. Furthermo furthermore, recent study and major electricity outages found that between 2012 and 2016 less than a frx of 1 were due to fuel supply problems. So the majority of outages are actually caused by Severe Weather impacting the distribution system, a problem exacerbated by Climate Change. So this leads me to questions of motivation behind the proposal, and to that end im sending you a letter today asking far detailed accounting of the process you used to develop this proposal, encolluding the records of the meeting you and your staff had and the taxpayer funds spent developing a proposal that seems directed in helping a select group of favored Energy Sources. Its an ironic proposal considering that epa administrator prewitt stated as part of his announcement in rolling back the clean power plant again quoting that Regulatory Power sh