Copyright 2001 eMediaMillWorks, Inc.
(f/k/a Federal
Document Clearing House, Inc.)
Federal Document Clearing House
Congressional Testimony
June 13, 2001, Wednesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 1181 words
COMMITTEE:
HOUSE COMMERCE
SUBCOMMITTEE: ENERGY
AND POWER
HEADLINE: ENERGY AND AIR QUALITY
TESTIMONY-BY: SPENCER ABRAHAM, SECRETARY OF ENERGY
BODY: Statement of the Honorable Spencer Abraham
Secretary of Energy June 13, 2001
Introduction
Thank you Mr.
Chairman.
I appreciate the opportunity to come before this committee
today to discuss the President 's National Energy Policy, which was developed by
the National Energy Policy Development Group under the direction of Vice
President Cheney.
Before taking your questions, I would like to make a
brief opening statement.
My statement will outline the scope of the
energy challenge we face over the next two decades, summarize the approach the
President has determined will best address this challenge, and finally emphasize
why I am optimistic that we can find a consensus in this country on policies
that promote long-term energy security for our citizens. America's Energy
Challenge 2001-2020
Today, America consumes 98 quadrillion British
thermal units (or quads) a year in all forms of energy. Our domestic energy
production is 72 quads. The imbalance between energy demand and domestic energy
production is made up with imports.
Between now and 2020, our energy
demand is projected to rise significantly.
If the energy intensity of
the U.S. economy - the amount of energy needed to generate a dollar of Gross
Domestic Product - remained constant, our energy demand in 2020 would be 175
quads.
However, our Plan and current policies will improve energy
efficiency to the point that energy demand in 2020 can be lowered from 175 quads
to 127 quads.
That means improved energy efficiency can help close much
of the gap between projected energy demand and projected domestic energy
production.
However, improved energy efficiency cannot do the whole job.
For that reason, the United States will need more energy supply.
The
question is: where do we get that increased supply when over the past decade
domestic supply production has remained relatively flat?
Our Balanced
Approach
To address these challenges, our National Energy Plan has
adopted an approach that is balanced and comprehensive. As the President said,
we are looking for a new harmony among our priorities.
Let me briefly
outline this approach for the Committee.
First, our policy balances the
need for increased supplies of energy with the need to modernize our
conservation efforts by employing cutting edge technology.
And so, for
example, as we call for recommendations to enhance oil and gas recovery from
existing and new sources through new technology, we also call for
recommendations for changes in Corporate Average
Fuel Economy
standards. Second, our Plan calls for a balance in terms of our
supply sources.
With electricity demand forecast to rise 45 percent by
2020, we estimate the need for an additional 1,300 to 1,900 new power plants in
the country.
Current policy anticipates that over 90 percent of those
new plants will be fired by natural gas.
We believe energy security
dictates a more balanced approach to new power generation.
In addition
to natural gas, the National Energy Plan looks to clean coal generation, nuclear
power, and hydropower to give us the broad mix of energy needed to meet growing
demand and support energy security.
Third, our plan balances our
pressing requirements for traditional sources of energy, such as oil and natural
gas, with the need for renewable and alternative sources such as biomass, solar,
wind, and geothermal.
The Plan seeks to increase exploration of domestic
sources of oil and natural gas. And it also recommends tax incentives for the
use of certain renewables and more focused research on next- generation sources
like hydrogen, and fusion.
Fourth, our energy plan harmonizes growth in
domestic energy production with environmental protection.
This
commitment to conservation and environmental protection is not an afterthought;
it is a commitment woven throughout our energy policy.
Energy production
without regard to the environment is simply not an option.
For example,
in addition to recommendations seeking to streamline the permitting process for
plant sitings as well as building new infrastructure, the National Energy Policy
also directs EPA to propose mandatory reduction targets for emission of three
major pollutants - sulfur dioxide, nitrogen oxides, and mercury -- from
electricity generation.
Building Consensus
We support this
balanced approach with 105 recommended actions, covering the full range of
energy challenges confronting this nation -- and indeed the world -- from how
best to enhance renewable sources, to oil and natural gas development in the
Caspian Sea.
The Administration can carry out many of these
recommendations on its own, either through executive orders or agency directed
actions. We are moving ahead to implement proposals as quickly as possible.
Just days after release of our National Energy Report, the President
issued two executive orders directing Federal agencies to expedite approval of
energy-related projects and directing Federal agencies to consider the effects
of proposed regulations on energy supply, distribution, or use.
Moreover, where appropriate, the President is directing Federal
agencies, including my own, to take a variety of actions to improve the way they
use energy and to carry forward critical aspects of his policy.
For
example, I've instructed our Office of Energy Efficiency and Renewable Energy to
carry out a strategic review of its renewable energy research and development
programs in light of the recommendations in our National Energy Policy.
Hydropower, geothermal, wind, and other renewables are highlighted in
our report for the contribution they are making and can continue to make to
energy security. Promising next- generation technologies will also play a part
in solving our energy challenges. Both current and future technologies will be a
part of our strategic review. I've asked that the study be completed by
September 1st . Its findings will permit us to recommend appropriate funding
levels that are performance based and modeled as public-private partnerships.
Twenty of the Report's recommendations require legislative action and I
think we will find more areas for cooperation than disagreement.
This
Committee has a long and proud tradition of passing bipartisan energy
legislation dating back to the 1970s. I look forward to working with the
Committee to develop energy policy legislation consistent with its bipartisan
tradition.
So, I believe that we start from a wide base of agreement. We
all recognize energy as a critical challenge. We all recognize that parts of our
energy supply and delivery system need enhancement or modernization. And we all
recognize that conservation and stewardship must go hand in hand with increasing
domestic supply.
Naturally, there will not be complete agreement and the
President is strongly committed to the adoption of his recommendations. But I
truly believe we have the basis for working together to meet America's serious
energy crisis.
Thank you, Mr. Chairman. I would be glad to take your
questions at this time.
LOAD-DATE: June 14,
2001