Prepared Remarks of Senator Domenici on the Department of Energy FY 2007 Budget Hearing
February 7, 2007
10:16 AM
Washington, D.C. – The Senate Energy & Natural Resources Committee today held an hearing on the Department of Energy FY 2007 budget.
Below is the prepared text of Senator Domenici’s statement:
"Thank you, Mr. Chairman. And, Mr. Secretary, I want to thank you for coming before the Committee this morning. I am very pleased that the FY 2008 budget continues our focus on energy security and our investment in science and innovation. This budget also increases funding for many of the programs in the Energy Policy Act of 2005. Implementing EPAct is the most significant near-term step we can take in strengthening our nation’s energy security. This work is essential, and I am committed to working with you, Mr. Secretary, to provide the resources necessary to fully implement these EPAct programs.
“I do, however, have a major concern with this budget and its impacts on the national laboratories in my home state of New Mexico. I am troubled by the reduction in funding for NNSA’s weapons program and all of our NNSA labs. Overall weapons funding will go down at Los Alamos National Laboratory by about 6 percent and at Sandia by about 8 percent. Those numbers are troubling to me.
“As you know, I have fought to integrate the nation’s weapons labs and science infrastructure into a more cohesive research unit. I hope you will work with me to advance our capabilities in this area, because I believe we can do better than what this budget proposes.
“I would like to move on to discuss the budget proposal on the loan guarantee program authorized in Title 17 of the Energy Policy Act of 2005. I am pleased that this budget allows for $9 billion in loan guarantees for clean energy and innovative technologies. “This is a step in the right direction, but a much bigger step is needed to make a real difference in the development of clean energy technologies.
“When Congress created this loan guarantee program in EPAct 2005, we envisioned a significantly more ambitious scope for the loan guarantees. This program provides incentives for clean energy projects, enumerated in Section 1703, that are critical in the fight against pollution or global emissions of greenhouse gases. Implementation of this program at the scale envisioned in EPACT 2005 could be a significant step toward addressing the challenge of global climate change, with little or no cost to the federal treasury.
“Let me now turn to another area with tremendous potential for addressing climate change. Mr. Secretary, I want to commend you for considerable investments in nuclear energy, and I believe that these nuclear power initiatives hold great promise for our efforts to reduce greenhouse gas emissions. I remind this Committee that nuclear power is the largest source of carbon-free energy in the world.
“Overall Nuclear Energy, Science and Technology is increased by 58 percent to $875 million over the FY 2006 level. Nuclear Energy Research and Development programs are increased by 114 percent over the FY 2007 CR level to $568 million.
“Nuclear Power 2010 is increased 75 percent from FY 2006 to $114 million. This program will complete the two Early Site Permits and the two generic Combined Construction and Operating License demonstrations for new nuclear plants.
“Finally, the budget provides for the implementation of a new program authorized in EPACT 2005 to offer risk insurance for the construction of 6 new nuclear power plants.
“Each of these initiatives is important to the construction of the 32 new nuclear power plants that have been proposed. If all of those plants are built, they will displace 270 million metric tons of CO2 each year. When those plants have been operating for five years, it is estimated that they will have totally displaced the amount of C02 produced by the 230 million cars on the road in America today.
“But we can’t talk about nuclear power as a large part of the solution to climate challenges without talking about a solution to nuclear waste. It does not make sense to attempt a serious discussion of addressing greenhouse emissions without moving towards a solution to the nuclear waste problem. I hope that this committee, this Congress and this Administration remain committed to solving our nation’s nuclear waste problem.
“I would also like to commend the President for continuing to focus on a comprehensive global nuclear strategy that promotes nuclear nonproliferation goals while helping to resolve nuclear waste issues. The budget request contains $395 million for the Global Nuclear Energy Program and I am committed to working to appropriate the funds needed for this program.
“Mr. Secretary, let me now turn to your proposal for the DOE Office of Science. I am very pleased with the request of $4.4 billion, an increase of $800 million over FY 2006 funding. Last year, the President committed to double funding over the next decade for DOE’s Office of Science. This budget is on track to fulfill his commitment.
“I applaud the President’s continuing investment in the American Competitiveness Initiative, which is now positioned to provide more than $137 billion over 10 years to programs that help America retain its leading edge in science, math and technology. The ACI will increase investments in research and development, education, and tax incentives to encourage innovation.
“Mr. Secretary, the next two years present you with a limited window of opportunity to address a set of issues that will come to bear tremendously on our nation’s long-term economic and national security. I expect timely implementation of the proposals set forth in EPACT 2005, as this will be key to assuring America’s energy security and continuing our Nation’s strong economic growth. I look forward to working with you to make these proposals a success.”
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