[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] ENERGY AND WATER DEVELOPMENT APPROPRIATIONS FOR 2018 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION ____________ SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT, AND RELATED AGENCIES MICHAEL K. SIMPSON, Idaho, Chairman KEN CALVERT, California MARCY KAPTUR, Ohio CHARLES J. FLEISCHMANN, Tennessee PETER J. VISCLOSKY, Indiana JEFF FORTENBERRY, Nebraska DEBBIE WASSERMAN SCHULTZ, Florida KAY GRANGER, Texas PETER AGUILAR, California JAIME HERRERA BEUTLER, Washington JOSE E. SERRANO, New York DAVID P. JOYCE, Ohio DAN NEWHOUSE, Washington NOTE: Under committee rules, Mr. Frelinghuysen, as chairman of the full committee, and Mrs. Lowey, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Donna Shahbaz, Angie Giancarlo, Loraine Heckenberg, Perry Yates, and Amy Murphy Subcommittee Staff ___________ PART 5 Page Testimony of Interested Members of Congress .................... 1 Testimony of Interested Individuals and Organizations .......... 121 U.S. Army Corps of Engineers (Civil Works) and Bureau of Reclamation ...................................... 323 Department of Energy............................................ 409 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] _________ Printed for the use of the Committee on Appropriations _________ U.S. GOVERNMENT PUBLISHING OFFICE 28-306 WASHINGTON: 2018 COMMITTEE ON APPROPRIATIONS ---------- RODNEY P. FRELINGHUYSEN, New Jersey, Chairman HAROLD ROGERS, Kentucky \1\ NITA M. LOWEY, New York ROBERT B. ADERHOLT, Alabama MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana MICHAEL K. SIMPSON, Idaho JOSE E. SERRANO, New York JOHN ABNEY CULBERSON, Texas ROSA L. DeLAURO, Connecticut JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina KEN CALVERT, California LUCILLE ROYBAL-ALLARD, California TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania BETTY McCOLLUM, Minnesota TOM GRAVES, Georgia TIM RYAN, Ohio KEVIN YODER, Kansas C. A. DUTCH RUPPERSBERGER, Maryland STEVE WOMACK, Arkansas DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington DEREK KILMER, Washington DAVID P. JOYCE, Ohio MATT CARTWRIGHT, Pennsylvania DAVID G. VALADAO, California GRACE MENG, New York ANDY HARRIS, Maryland MARK POCAN, Wisconsin MARTHA ROBY, Alabama KATHERINE M. CLARK, Massachusetts MARK E. AMODEI, Nevada PETE AGUILAR, California CHRIS STEWART, Utah DAVID YOUNG, Iowa EVAN H. JENKINS, West Virginia STEVEN M. PALAZZO, Mississippi DAN NEWHOUSE, Washington JOHN R. MOOLENAAR, Michigan SCOTT TAYLOR, Virginia ---------- \1\}Chairman Emeritus Nancy Fox, Clerk and Staff Director (ii) ENERGY AND WATER DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2018 ---------- Wednesday, March 8, 2017. MEMBERS' DAY Mr. Simpson. The hearing will come to order, and today we have a Members' hearing for Members of the Congress to come testify before--sorry, I didn't put it on. Today we have a Members hearing for Members to come and testify before Congress about areas of importance in the Energy and Water Appropriation bill, and we are happy to welcome all Members of Congress that have comments to make and suggestions for us. We are happy to welcome two Members today, Rick Nolan from Minnesota, and Francis Rooney from Florida. Rick, it is your time to give us our testimony. The floor is yours. ---------- Wednesday, March 8, 2017. WITNESS HON. RICHARD M. NOLAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MINNESOTA Mr. Nolan. Thank you, Mr. Chairman. Thank you, members of the committee, and thank you for all the great work you have done. Mr. Simpson. Turn your mic on, please. Mr. Nolan. Thank you, Mr. Chairman, and thank you, members of the committee, for hearing from us, and thank you for all the great work that this committee has done for this country. Much appreciated. I wanted to just briefly talk about the Poe Lock at the Soo Narrows, and I am sure you are probably familiar with it, but I do want to remind you that about a year-and-a-half, 2 years ago, Homeland Security did a study, and they found that 13 percent of the Nation's gross national product goes through the locks at the Soo Narrows, and that is how all the mining in business and agriculture and industry from Lake Superior gets into the Great Lakes and into the Saint Lawrence Seaway. Thirteen percent of Nation's gross national product goes through those locks. And Homeland Security concluded, among other things, that if those locks failed us for any reason, it would throw the country into a great depression, put as many as 7 to 10 million people out of work, and countless businesses out of business, not just throughout the midwest, but as far west as California and as far east as New York, and as far south as Florida and Texas. Why? Well, much of that product that goes through there is ore from the mines in Minnesota, Wisconsin; and they, of course, fuel the steel mills of the Great Lakes which, in turn, fund the--or supply the automobile industry and all the manufacturing and industries throughout the Great Lakes region. It is a very, very powerful part of our country. In fact, the study concluded that the economy of the Great Lakes, if it were a nation by itself, would be the fourth most powerful economic nation in the world. So that is why we have military protection at the Soo Locks to protect us against some kind of, you know, terrorist or asymmetrical military attack. But the simple truth is, the locks are becoming very, very obsolete, and badly in need of repair. They are not large enough to accommodate the--today's most modern Lakers, the ships that haul so much of the grain and the iron ore, and they are badly and desperately in need of replacement. The price tag is enormous. It is estimated to be as much as $600 million to replace that Poe Lock, which is falling apart, and to create a redundancy and a support of lock to keep that commerce flowing throughout the country. I want to applaud this committee for appropriating $1.35 million to do a cost-and-feasibility analysis so that we could get on with repairing this critically important part of our national security and our national economy, but bring to the attention of the committee the profound need to begin the process of funding this new lock, which is so critical to our economy, so that we can protect ourselves, continue to protect ourselves from a military attack, from natural disaster, or something we are totally in control of which is protect ourselves against negligence, and not stepping up to do the kinds of replacements and repairs that are necessary. So beyond that, Mr. Chairman, I won't take a whole lot of your time. I want to thank you for the work that you have done on invasive species as well. Up in my district in particular, we have the Mississippi watershed, we have the St. Louis watershed going into the Great Lakes, we have the Rainy Lake watershed going up into the boundary waters. We are water rich, and among other things, we need to protect that and protect ourselves from the multitude of invasive species that threaten the health of our fish and wildlife and waters. So thank you very much, Mr. Chairman. Be glad to take any questions any of you might have, and thank you for the work that you do here. It is very important to our country, our economy, and I would hope that this could be part of President Trump's $1 trillion infrastructure plan. It certainly needs to be considered. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Congressman. Does any member have any questions? Ms. Kaptur. Ms. Kaptur. You know I can't let this moment go by. Mr. Simpson. I knew that. Ms. Kaptur. Thank you, Mr. Chairman, and thank you, Representative Nolan. What an outstanding representative you are, including for the Great Lakes, and I just wanted to ask you: Obviously, I am a great supporter of the study that is--we have funded, but I wondered if you have been privy, as a representative from Duluth, of any engineering studies that may have been done by the private sector that talk about the future of the seaway as a modern seaway. It was built during the Eisenhower era. It is over a half century old now. In terms of the width of the locks, right now you mention in your testimony, 13 Lakers heavily involved in the steel industry hauling ore, but what would be the proper width? What would be the proper dimension of the seaway from your region on down all the way to Messina? Have you seen such an engineering study to modernize the seaway? Mr. Nolan. Well, I have seen some of them. I can tell you right now, that the Lakers are operating at only about 80 percent of capacity just because there has not been enough money put into the necessary dredging programs, and the locks are not even capable of handling the larger Lakers or the next generation of Lakers, and this is costing our country, oh, my gosh, the estimates are, you know, up into the billions of economic growth and income to the country. So I should know this, but is this committee responsible for the Harbor Maintenance Trust Fund? Mr. Simpson. Yes. Mr. Nolan. Well, that is what I thought, and you know, I think there is a balance in there of about $7 billion, and we all applaud bipartisanship, and to be sure, we should. I must say, there are cases where bipartisanship is not necessarily so good, because I think both Democrats and Republicans have raided that fund for other purposes. So I would strongly urge the committee, when it comes to that Harbor Maintenance Trust Fund, to see to it that more of those monies, which are paid for by the Lakers, that is a use tax, to maintain and upgrade the Great Lakes seaway system, which has just fallen terribly far behind, and I would strongly urge you to use your authority here to make sure that more of those Harbor Maintenance Trust Funds are dedicated to what they were established for, which is maintaining the Great Lakes seaway system. It is so vital to our economy and our well-being and the creation of good-paying jobs in this country. Ms. Kaptur. I thank you for making that linkage, and also just to say, in closing, that if you have recommendations of firms, of studies, of individuals on the engineering side that could meet with our Great Lakes task force and provide information to this committee, this subcommittee, I think I would be very appreciative of that. We have our regular big meeting in May coming up, but I think we need have a vision of the seaway and where the locks you referenced fit. But there is a bigger vision that, I think, actually, this committee has not been apprised of and of options, and other places in the country are much better organized, speaking very frankly, in terms of a vision for how to modernize their coastal ports or their regional assets, and I think that we need stronger voices, and yours is one of those. So I would just urge you to help us pull together that information in a coherent manner, and I thank you very much for your testimony. Thank you, Mr. Chairman, for your indulgence and the committee's indulgence. Mr. Simpson. Any other members have any question? Yeah, and I appreciate your point now. I think it is about $9 billion that is in the Harbor Maintenance Trust Fund. We haven't used it for anything else. We can't use it within our budget, which is kind of weird, because of budget rules and what it would do to our overall budget and stuff, so we have got to find a way around that. The Transportation Committee tried to do that last year and was kind of shot down on it, but we are working on it. That is something we still need to do, because you shouldn't be collecting a tax to address a need and just growing more and more money in that if you are not addressing the need. That is something this committee recognizes, and we need to get Congress to recognize that also. So I appreciate your testimony, and thank you for being here today. Mr. Nolan. Thank you, Mr. Chairman and members of the committee. Mr. Simpson. Mr. Rooney. ---------- -- Wednesday, March 8, 2017. WITNESS HON. FRANCIS ROONEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. Rooney. Yes. Thank you, Mr. Chairman and members of the committee for giving me the opportunity to speak today about the Everglades as well as for all of the important things you have done in the past for the Everglades for so many important infrastructure projects in the country. The Everglades and Lake Okeechobee watershed include 16 counties and 164 cities. It has a $2 trillion economic impact on the State of Florida, and supports 55 percent, 1.3 trillion of the real estate value in Florida. For every dollar invested in the Everglades and Okeechobee watershed, $4 of economic benefits are produced. Due to a century of development, the greater Everglades' ecosystem is now less than one-half of its original size. The rest of it is Miami and Ft. Lauderdale now, and Lake Okeechobee fills up six times faster than it can be drained, which results in massive discharges into the adjacent rivers and marshes, and sends untreated water down into them. It also impacts the delicate balance of fresh and saline water in the ecosystem. The Comprehensive Everglades Restoration Plan, or CERP, seeks to restore the balance to these delicate ecosystems and reduce harmful discharges in the Caloosahatchee and St. Lucie estuaries and send clean water south into the marshes of the Everglades of Florida Bay. CERP was created by the Congress in the State of Florida in 2000. It includes 68 projects that will combine to create storage, treatment, and flow southward into the marshes of the Everglades; storage and treatment of water entering into Lake Okeechobee from the north, and you all have funded the Kissimmee restoration, which is a big part of that; and balancing of the flows to control salinity. CERP was set up to share the cost 50/50 between the State and the Federal Government, and as of December 2016, the State had expended about $2.2 billion, and the Federal Government had contributed about $1.26 billion, so it is a 63 to 37 percent split instead of 50/50, and so we think that the Federal Government has some catching up to do if we could get the money. In fact, there are three projects that were authorized way back in the 19--in the 2007 WRRDA bill, which are still incomplete, the site 1 impoundment over by Palm Beach in the Loxahatchee Wildlife Refuge, the Picayune Strand project in Collier County, and the Indian River Lagoon, or C-44, along the St. Lucie Canal. The cost to complete these three projects is $3.3 billion, most of which is centered in the C-44 basin. Additionally, there are four projects from the 2014 WRRDA bill which have not been completed; the C-43 West Storage Basin in LaBelle; the C-111 Spreader Canal on the east side of Miami--west side of the Miami, and what this will do is keep Miami pollution from seeping back into the Everglades from the east; the Broward County water preserve area; and the Biscayne Bay Coastal Wetlands project. You can see they are all around the lake; it is not just centered in one area. Each of these projects is essential to completing the whole mosaic of restoring the watershed and the Everglades. The cost to complete these projects is $1.7 billion, but the State of Florida will pay $800 million of that to complete C-43. It is worth noting how robust and vibrant is the partnership between South Florida Water Management and the U.S. Army Corps of Engineers. It is a great example of two areas of government working very well together. In the case of C-43, there were no Federal appropriations, so the State decided to go ahead and do the whole thing, and hopefully the Federal Government can catch up on some of these other projects that would offset that. The 2016 WRRDA bill contained several new CERP authorizations, one of which is the Central Everglades Planning Project, which is six projects for $1.9 billion, which constructs a whole series of projects to bring 210,000-acre feet of Lake Okeechobee water down into the Everglades into storage treatment basins, and then into the water conservation areas and down into the national park. The CERP includes several features, including backfilling of some canals that impede the flow of the water, and removing of some old levees and roads, and construction of a 15,000-acre foot Flow Equalization Basin, just west of an existing one that was recently built by the State of Florida. The one that was built by the State of Florida was taking in water of 400 parts per billion of dissolved pollutants, mostly phosphates, and turning it out at 10 or 12. So these are very effective devices, and so this is a great opportunity to expand that. The second WRRDA authorization project is to finish the Picayune Strand. That is a 55,000-acre of drained wetlands in Collier County, which also has flood control aspects of draining several neighborhoods to the north and it is last 133 million of that. So and lastly, in addition to these projects, the Corps is responsible for the repair and replacement of the Hoover Dike, which was built in the 1930s to prevent some of the terrible floods that happened then. And it wasn't constructed all that well. Construction back then was done differently than constructions done now, and the Corps has done the first 40 miles, and there is about two-thirds left to complete. That is $800 million. So basically, the Corps has supplied a high of $120 million back in 2010, and we are down to a low of, like, $69 million last year, so we are hoping that we can continue to demonstrate how important these projects are, and that we try to keep them moving forward to the extent that the committee can fit that into your, I know, very difficult work schedule and great demands for your money, but I appreciate your time today. Thank you very much. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. I appreciate you, Congressman Rooney. Questions? Ms. Kaptur. No questions. I just thank Representative Rooney for being such an articulate spokesman for the Everglades and for your region. You really fight for her. Your constituents are fortunate. Ms. Rooney. Thank you, ma'am. Mr. Calvert. Thanks for coming down. I am looking forward to entertaining you there and check it out. Mr. Simpson. This committee has a lot to do with it, too. Obviously, from the Interior Subcommittee, so both the committee--the Interior Committee have a lot to do with funding the restoration of the Everglades and trying to get it back into shape, and we will be down there as soon as you get rid of those pythons. Mr. Rooney. We might have to get you down sooner than that, Mr. Simpson. Mr. Simpson. Thank you. Mr. Rooney. Thank you very much. Mr. Joyce. Mr. Chairman. Mr. Simpson. Mr. Joyce. Mr. Joyce. I would like to point out that I had the opportunity to go down and tour with the Everglades Foundation, and they have the same algal water problem, algal blooms, that we suffer in Lake Erie, and there are a lot of good projects that are being done, and so any way we could help Congressman Rooney along these lines would be, I am sure, deeply appreciated by the people down there. It is hard to fathom that they push out a half trillion gallons of freshwater into the ocean every year because they can't contain it in the Everglades, and as we all know, those are nature's kidneys, so the more we can do to help them, the better off the Everglades will be. Mr. Simpson. Thank you. Thank you. I appreciate you being here today, Congressman Rooney. Congressman Comer. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. JAMES COMER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF KENTUCKY Mr. Comer. Thank you. Chairman Simpson, Ranking Member Kaptur, thank you for the opportunity to testify regarding the fiscal year 2018 Energy and Water Development and Related Agencies Appropriations bill. I testify to urge adequate funding for two very important projects to the First District of Kentucky, the Paducah Department of Energy cleanup site, and the Kentucky Lock Addition Project. First, I ask this committee to fully fund the Paducah Department of Energy cleanup site. As you may know, in 1959, the Paducah Gaseous Diffusion Plant opened to support this country's nuclear weapons program, and later transitioned to produce nuclear fuel for commercial power plants. Because of this work, significant amounts of contaminated soil and groundwater remain at the site. Deactivation and cleanup work began in July 2014, and while much progress has been made, there is still much work yet to do. Funding closer to the fiscal year 2014 level is imperative to allow the Department of Energy to accelerate the C-400 building cleanout project, which is connected to hazards associated with historic groundwater contamination. Second, I ask this committee to adequately fund the Army Corps of Engineers' construction account to continue the work of upgrading our waterways infrastructure. The Kentucky Lock Addition Project in my district is an example of a much-needed project that would benefit from adequate funding for Corps construction. The Kentucky Lock Addition Project was authorized in the Water Resources Development Act of 1996. This project includes design and construction of a new 110-by-1200 lock to be located landward of the existing 110-by-600 lock. Products originated-- originating from or designated to 20 States pass through Kentucky Lock. Since most of the tows are greater than 600 feet in length, they must perform a very time-consuming double lockage to transit through the existing 600-foot--600-foot long Kentucky Lock. As a result, Kentucky Lock has some of the longest average delay times of any lock in the inland waterway system, with the average delay of over 8 hours. Recently, the Inland Waterways User Board learned that the total project cost would increase by $380 million to $1.2 billion due to the uncertainty of sufficient funding. Without sufficient funding, the expected completion date of 2024 will add at least 5 years. Therefore, I respectfully request that the U.S. Army Corps of Engineers' construction account receive sufficient funding to avoid delays to completion of projects like the Kentucky Lock Addition and escalating project prices. Thank you for the opportunity to testify today, and if anyone has any questions, I will be happy to answer them. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for being here today and testifying on these programs. Are there any questions? Mr. Newhouse. Mr. Newhouse. Thank you, Mr. Chairman. I just wanted to say that I appreciate Mr. Comer's bringing to our attention the nuclear waste issues that you have in your district. I can certainly relate to the challenges and the importance of nuclear waste cleanup. We have a similar situation in my own district, and I just wanted to thank you for pointing that out, and also talking about the urgency of getting that kind of work done. Mr. Comer. Thank you. Mr. Newhouse. Thank you, Mr. Chairman. Mr. Simpson. Any further questions? Hearing none, thank you for being here today. We appreciate it very much. Mr. Comer. Thank you for your hard work. Mr. Simpson. We are waiting for our next witnesses that--we have some breaks in the schedule as people decided not to testify, originally signed up and a few things like that, so we are kind of waiting for the next ones to show up here, but let me just take a moment to welcome the three new members that are here to our subcommittee. Congressman Newhouse from Washington, Congressman Joyce, and Congressman Aguilar, thank you for being here today, and you will find this is an interesting committee when we get into a lot of these different subjects and stuff that a lot of people don't know a lot about, so---- Mr. Newhouse. Thank you. Mr. Joyce. Thank you. Mr. Simpson. If nothing else, we will take a brief pause-- -- Mr. Calvert. Have a donut. Mr. Simpson. Have a donut--for the others to show up. [Recess.] Mr. Simpson. Okay. The committee will be back in order. We now welcome to--we are now happy to welcome Mr. Panetta from California to testify before the committee. The floor is yours for 5 minutes. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. JIMMY PANETTA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mr. Panetta. Great. Thank you, Mr. Chairman. I appreciate that, Ranking Member Kaptur, other members of the committee. Thank you very much for this opportunity. I appreciate it. It is an honor to be here, as always. As many of you know or may not know, my family, I represent California's 20th Congressional District on the central coast. My family has deep roots in that area. My grandfather, an Italian immigrant, came to that area, my father was raised in that area, I was raised in that area, and now it is where my wife and I raise our two daughters. I am proud of that area not only because it is my home, but because I feel it has the most beautiful environment as well as the most bountiful agriculture. With both those traits, as you can imagine, we are constantly trying to find a balance, environmentally, economically, obviously politically, and with both those qualities, though, we are also trying to find effective water infrastructure, which is critical to that area. It ensures the environmental protection and it--which facilitates the economic activity of that area. And so today, I want to bring to your attention an ongoing Army Corps of Engineering project that does threaten the safety of the residents of a certain area in my district and the viability of the agricultural businesses of that same area. It is the Pajaro River Project. That consists of a series of levees built to protect the cities of Watsonville and Pajaro from flooding. Originally, these towns were settled by a large Croatian, Japanese, and Italian immigrant communities who came there to work the land, and yes, like my grandfather, to live the American dream. Today, immigrants, mainly of Latino descent, continue to come to this area, work in the fields, and yes, contribute to our community. The Pajaro River Project was originally constructed in 1949 to protect the people of those communities. However, the Corps and the community have recognized that that project's flood protection has been inadequate. Watsonville only has a 25-year flood protection, and the town of Pajaro only has a 7-year protection. The levees have received a patchwork of repairs over the years, but that does not address the necessary flood protection, nor does it safeguard the citizens from harm, and even the Corps has estimated that there is an 82 percent threat of flood in the next decade. One of the most glaring examples of this type of threat was in 1995, where there was a large flood that dramatically impacted the locals in that area. It resulted in over $95 million in damage to the surrounding communities, and hundreds of people were displaced as a result of it. One local who was personally impacted by that flood was a rose grower named Eugene Tsugi, T-s-u-g-i. His business, 2G Roses, was inundated with floodwaters. His home, as well as his sister's home, were damaged by floodwater. In fact, the damages that he sustained were well over $1 million. He used to joke that his son, who was born 2 days after the flood, would go to college before the levees in that area were repaired. Well, unfortunately, due to a lack of action by the Army Corps of Engineers, that prediction was true. His son today is now an All American gymnast and a junior at the University of Washington near Seattle. In 2015, the Pajaro Project was incorporated into the Corps 3 years SMART planning timeline, with a deadline of March 2018 for the completion of a feasibility study, and environmental impact statement. The Corps has failed to keep the project on schedule. Though the locals have fronted 3.2 million to date to keep the project moving, the project is still an estimated 18 months behind schedule. It is an ongoing threat to the community. In the last 8 months, the community has spent 1.5 million on emergency damage response. The local non-Federal sponsors would like to keep this project moving, but they feel the Corps are not responsive, and it continues to be a threat to the safety of its local residents. Although last month, I met with Major General Jackson from the Army Corps to discuss the delays associated with this project, I found him to be very responsive. In fact, he is going to be traveling to the district to witness the project firsthand, and I hope that he sees the communities affected by the flooding, and he gets to hear from individuals who have suffered the damages from flooding, either to the property, and especially the agricultural businesses. So today, I ask the committee for continued funding for these water projects. It is an investment in these projects that are critical for the communities who rely on them for safety and economic prosperity. When making these investments, we should ensure that we are holding the Corps accountable to their own timelines. I urge the inclusion of report language requiring the Corps to provide an update on the current status and timeline moving forward of all projects subject to the 3- year SMART planning criteria within 90 days of the passage of this act. This would allow for increased oversight for the committee, while also increasing the accountability to local non-Federal sponsors. To ensure that the value of agriculture land is appropriately calculated when conducting cost-benefit analysis, more work is needed. Agricultural land in the Pajaro Valley is some of the most valuable in the county. When flooding, these farms often miss multiple growing seasons as they address environmental and flood safety concerns. I have heard from locals that they believe that their agricultural land has been undervalued because the only value of the physical crop damage was accounted for. I also urge the inclusion of report language directing the Corps to incorporate the full economic value of agricultural land when completing its cost-benefit analysis. This would make projects in rural communities more competitive for adoption into the Corps work plan by more accurately valuing the economic impact of agricultural production. I thank you for your time. I look forward to working with you to advance the health, safety, and economic liability of our rural communities depending on these investments and our water infrastructure. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Congressman. I appreciate you being here today and bringing us up to speed on what is happening in your area per your request. Are there any questions? Mr. Aguilar. Congressman, what crops are at risk directly? What is the kind of the primary--I know there is a lot, a lot there, but can you give us a bit of flavor? Mr. Panetta. Of course. Look, in that area, it is the salad bowl of the world, as you know, Pete. It is an area that has, you name it, we got it. Strawberries are the main crop in that area, brussel sprouts, raspberries, artichokes, leafy greens, spinach, you know, I can go on and on. There is over--that area has over 100 crops. More crops on the central coast are grown than any other single State. These are areas that basically feed the Nation. It puts these types of crops onto the shelves of our stores, and eventually onto the tables that our families--so our families can eat it. Mr. Aguilar. Thank you Mr. Simpson. You had me till you said brussel sprouts. Ken and I argue about the value of brussel sprouts all the time. If there are no other questions, thank you for being here today. We appreciate it appearing before the committee. Mr. Newhouse. Mr. Chairman, I just wanted to say that Mr. Calvert, I am sure, would lead a trip. This is a very terrible place in the world to visit at any given point. Mr. Simpson. I understand it is fairly ugly, too. Mr. Aguilar. Yes, so it might deserve some more thought. Mr. Newhouse. Mr. Chairman, just one short question. Mr. Simpson. Mr. Newhouse. Mr. Newhouse. I appreciate that. Thank you. First of all, I wanted to compliment your constituents' excellent choice of looking north for quality education, but in light--and thank you for your effort to preserve valuable farmland in the State of California. In light of all the precipitation that we have gotten in the West Coast this year, is that exacerbating the problem as far as the flood concerns are right there in that area? Mr. Panetta. You know, the obvious answer is yes, there is no doubt about that. But it is funny, during last year, you know, I went to a meeting where hundreds of community members showed up before the rains, and it has been an ongoing issue with them. So it is not just the rains that have highlighted this issue. This is something that if you live in that area, if you work in that area, if you do agriculture in this area, you know the risk that it can pose to that area. And so, yes, it is obviously highlighted. They had to put $1.5 million in damage repair because of the flooding that we experienced, but this is going to keep on going and going if it is not fixed any time soon. Mr. Newhouse. Thank you, Mr. Chairman. Mr. Simpson. I will say this, Congressman Farr, your predecessor, approached me even a couple of years ago about this while it was not all these heavy rains and everything was not the issue. It was that there was no water at the time, but he still recognized the problem that we had there, so thank you for carrying on on that. Mr. Panetta. You bet. Thank you. Thank you to the committee. Mr. Simpson. Thank you for being here. Mr. Panetta. Thank you, Mr. Chairman. Mr. Simpson. Mr. Mast, Congressman Mast, good to have you here today. Mr. Mast. Good to be here, sir. Mr. Simpson. The floor is yours for 5 minutes to testify on what you would like to see this committee do. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. BRIAN J. MAST, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. Mast. I appreciate it, sir. Chairman, Ranking Member Kaptur, the rest of you members here, I appreciate you letting me address you. I am here to advocate on behalf of robust funding to for the U.S. Army Corps of Engineers, basically to advance and expand their river and harbor maintenance, flood and storm damage reduction, shore protection, and environmental restoration missions. In my Florida congressional district, which spans St. Lucie, Martin, and Palm Beach Counties, the most pressing issue that folks face really, there are harmful and unnatural massive discharges, sometimes up to 7 million gallons of freshwater per minute that are directed by the Corps of Engineers out of Lake Okeechobee and into the heart of our coastal saltwater community. These discharges, they are imposed by the Federal Government, and they turn the St. Lucie River and our Nation's--really the Nation's most species-diverse saltwater estuary, the Indian River Lagoon, into an algae-infested toxic waterway that surrounds hundreds of thousands of residents, and the resulting algal blooms, they kill beloved wildlife, like manatees and dolphins. These toxins that are released by the algal blooms, they hurt people through air and water, children can't go swimming or play near the water, the elderly residents must stay, you know, really inside of their homes if they live near the toxic air. These blooms also destroy our economy, because you can't sell a house that sits on top of toxic water. Nobody wants to go on vacation near toxic water. Nobody wants to go boating or fishing or anything like that in a giant stew of algae. As a result, local and small businesses, our bars, our shops, our restaurants, paddle board companies, outdoor recreation stores, gas stations, fishing charters, they are all suffering. After fouling our community, the discharged water is simply lost out to sea. It is wasted, when it really could have been put to important use had it not been discharged in the first place. Every time the Federal Government imposes these discharges, it means that hundreds of millions of gallons of water are less for drought reduction, hundreds of millions of gallons less for Everglades in Florida Bay, hundreds of millions of gallons less to replenish our Florida aquifers, the drinking water source for 8 million south Floridians. I can tell you these people in the Treasure Coastal of Florida, they understand the critical need for flood protection in the area and other communities surrounding ours, those south of Lake Okeechobee that prompt these discharges. However, my constituents back home, they just can't accept that despite a scientifically sound and decades'-old action plan, the State of Florida is fulfilling its financial responsibilities; the Federal attention and resources don't seem to respond to our water woes in the same way, regardless of how large the problem grows at either end of the Everglades ecosystem. The lack of responsiveness from Federal Government on Everglades restoration, it stems from one of three different places, different processes, all that feed into one another: project administration, project authorization, and project appropriations, and really delays in any one process. They impose further delays on the other processes, and when you are talking about more than 60 individual comprehensive Everglades ecosystem restoration plan projects, it can really add up in the end. So administratively, the Army Corps of Engineers is reluctant to marry their flood control mission with their Lake Okeechobee and ecological restoration mission in the Everglades, but coordinating these missions is the key to ensuring that more water is directed towards Everglades National Park, and away from coastal communities like my own. As vice chair of the Water Resources and Environment Subcommittee, you can count on it being my priority to pass Water Resources Development Act that includes more CERP project authorizations, and from an appropriations standpoint, I can tell you there is more funding is needed to allow the Corps of Engineers to quicken the pace of rehabilitation of Herbert Hoover Dike around Lake Okeechobee. You know, just my ask to you all, let's get this done. Let's get it off the books, and let's get Florida's water system repaired. More funding is needed to accelerate the construction of these already authorized CERP projects, the Indian River Lagoon-South, the Central Everglades Project, among others. There is a number of CERP projects that are still awaiting authorization in part, because funding and legal limitations on the Corps of Engineers with respect to investigations and studies. I would respectfully ask that the subcommittee consider increasing the appropriations for the Army Corps investigations and to raise the cap on the number of study starts for environmental restoration projects the Secretary of the Army can green light in each fiscal year. One a year simply isn't sufficient. And, finally, I would like to welcome the Chairman, the Ranking Member, every member of this subcommittee down to the Treasure Coast to witness firsthand the devastating impacts that we see around Lake Okeechobee discharges and the harmful algal blooms. I thank you all for your time and your important efforts to craft an Energy and Water Development Appropriations bill that reflects the concerns and the priorities of the American people. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Other questions? Mr. Mast. Yes, ma'am. Mr. Simpson. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. Representative Mast, thank you so much for being here this morning. I wanted to ask you, you are in a really important position as vice chair of WRRDA, of the Water Resources and Environment Subcommittee and Transportation and Infrastructure. Your statement in the testimony, reluctant--``Army Corps is reluctant to marry their flood control mission at Lake Okeechobee with their ecological restoration mission in the Everglades,'' and you specifically mention algal blooms, which is a gigantic problem in the lake that I represent, Lake Erie in the north. I am interested in that dysfunction. Why do you think that happens? It is really important that you recognize that in your testimony, reluctant to marry their flood control mission with their ecological restoration mission? Is there something wrong with the authorizing legislation? Mr. Mast. Well, you know, when we look at the flood control mission, they are taking water that naturally flows south towards the Florida Bay, and instead, they are sending it out the East Coast and the West Coast of Florida in a very unnatural way, and that is in the aim of flood protection, but at the same time, that water is, quite literally, needed in the Florida Everglades. The Florida Everglades are dry, they are drying up. They don't have the water that they need. So at one point we are sending freshwater in directions where it is not naturally meant to go. The coastal estuaries are, by nature, saltwater, and we are releasing freshwater into them. So by nature, it is harmful, before you even talk about the added nutrients that are in the water, and that is water that is actually needed for ecosystem restoration further south, which is where we want to see it head to and where all of these existing projects, should they be brought to completion, they will work towards moving that water south. And so unfortunately, when it is not prioritized in that way, we end up causing damage to both ecosystems when sending water in one direction would really help both ecosystems. Ms. Kaptur. Were they badly designed in the beginning? Mr. Mast. When you talk about ``badly designed in the beginning,'' we are talking about going back, you know, 100- plus years to when Lake Okeechobee was dammed up to begin with because it did used to naturally flow down to the Florida Bay, so we are talking about a very, very old problem. But in that, yes. It is badly designed in that these projects are not being allowed to come to completion. The point that I make to people is this often, when you are talking about the design of this. The Hoover Dam, not the Herbert Hoover Dike, that was the Nation's biggest infrastructure project. That was built in 5 years. This project is literally taking decades. And when you consider how much smaller it is, that is something that should trouble every one of us, especially when you are talking about doing that kind of damage to both ecosystems. We have to prioritize, you know, these projects, get them done, you know, in orders, you know, in the order that they give, so that we can see one after another after another come to completion, and end up not harming both ecosystems in the end. Ms. Kaptur. And could you describe the source of the algal blooms? Mr. Mast. Yes. Ms. Kaptur. The nutrients? Mr. Mast. Yes, ma'am. So during, primarily, the summer months, when there is an excess of rain that fills up the Florida watersheds, as we know, most water flows south, so when you get water north of Lake Okeechobee coming in on the Kissimmee River, which is also an issue. It was straightened by the Corps of Engineers. It used to run like a snake, but it was straightened out, so now the lake fills up something about six times faster than what it was originally designed to fill up at. That is what causes this need for releasing the water to the east and the west, because it can't get that water out of there quick enough. So you know, when we get those summer rains and it fills up that much, and there is added heat and that freshwater comes out into our coastal estuaries, that is how we get those algal blooms combined with the additional nutrients that are in this water to which I would make this point: For the Florida Everglades largely inhabited by snakes, turtles, alligators, and fowl, waterfowl, there are water standards for 10 parts per billion of phosphorous that can go down into the Florida Everglades. For the water that goes out to the East Coast and the West Coast of Florida where there are hundreds of thousands of residents, there are no water quality standards. Now, that is a State issue, but that is something that should be very troubling. Ms. Kaptur. Does agriculture contribute to the nutrients loading? Mr. Mast. Without question. When you have agriculture in and around, you know, any area that feeds into the watershed, absolutely, anything that goes onto those agriculture products are going to feed into that watershed. Ms. Kaptur. Not knowing your area, is it animal agriculture, or is it vegetables or fruits? Mr. Mast. So there is a plethora of agriculture. As I said, you have a watershed that feeds from, you know, hundreds of miles north, from 100 miles north, you know near the Kissimmee River, that feeds in, all the agriculture surrounding that feeds into Lake Okeechobee, all of the agriculture fields, there is an entire area surrounding Lake Okeechobee called the Everglades Agricultural Area. It is all farming, and all of those areas and what is put on those crops, absolutely, that plays a role into what is going into Lake Okeechobee, and what is spilling out into the coastal estuaries. Ms. Kaptur. I thank the gentleman. I thank the chairman for your indulgence because Congressman Joyce and I share a very serious issue in Lake Erie, shallows to the Great Lakes that is moving toward death right now as we sit here, and it drains the largest watershed in the Great Lakes region, and all the instrumentalities we have have not put us on pathway to really solve that problem fast enough. And, so, I look at your area and I am listening and I am saying, huh, there is some similarities here in this 21st century. We have to look at these watersheds, and we have to have a different way of approaching them more quickly, and we don't have that mechanism yet that some of our prior witnesses talked about the State government having responsibility for certain projects, working with the Federal Government, and the Federal Government doesn't fund its share, but this is--this is a 21st century problem, and we don't have the proper structure to move quickly enough. So I appreciate your testimony, and I appreciate the---- Mr. Mast. Can I give you one other point on that? Ms. Kaptur [continuing].--Chair's indulgence. Yes. Mr. Mast. Just on your point just now. You know, when you look at ERDC, energy--rather, Engineering, Resource, and Development where they basically do all the testing for projects surrounding the Corps of Engineers, they don't have, you know, the robust resources to go out there and pursue research into ways to fix your algal blooms, my algal blooms, those that go on down into Louisiana at the massive level that we see them. When we are talking about cleaning a fish tank, yeah, that is something that we can do, but when we are talking about a rate at 7 million gallons a minute, or whatever it is that you may experience up there, or whatever it is that they experience down, you know, along the Mississippi and other places, I think this would be a great place as well to put research in, being that it is affecting so many different areas. Ms. Kaptur. Your statement, that is what I was interested in, ``reluctant to marry their flood control mission with their ecological restoration mission.'' That is a very insightful contribution to thinking about this. In our area, we have the problem that stretches over three States and another--a part of another nation, and so we can't get our arms around it, and yet, we know it is happening and we are not responding quickly enough, so thank you. Thank you, Mr. Chairman Mr. Simpson. Thank you. Thank you for being here today. We appreciate it. Mr. Joyce. Mr. Chairman.---- Mr. Simpson. Mr. Joyce. Mr. Joyce. When you talk about Lake Okeechobee, the diversion of the water east and west, is that because of the potential failure of the dike? Mr. Mast. That is exactly correct, sir. So you have--after Hurricane Katrina, the Corps of Engineers went around and assessed dikes around the country. The dike around Lake Okeechobee was determined to be one of the worst dikes existing around the country, and so that is where they determined--based on there is a lower schedule, Lake Okeechobee regulation schedule that determines the height at which you can keep the lake. They decided they had to keep it a lower level, and that is where they, you know, really, in a massive scale, started distributing water out the East Coast and the West Coast of Florida in a very unnatural way. Like I said, freshwater, and we all know what a commodity freshwater is in many parts of this country, going out, simply lost into saltwater estuaries where it is very damaging. Mr. Joyce. I am one to believe that is our version of oil, freshwater, potable water supply, and the idea that you are sending it out east and west. The other problem would be if it is--if I heard you correctly, that this is a collection, if you will, of agricultural discharge, so therefore, the lake must be loaded with phosphates? Mr. Mast. That is exactly correct, and that is where, you know, I brought about the point as well where you talk about there is a requirement for the level of phosphorous that goes down to the Florida Everglades where there is, you know, largely wildlife habitat, but there is not a requirement for a standard that go out towards where people are boating, fishing, skiing, playing, jumping in the water out of their backyards, you know, where the bulk of the population is, and that is very troubling to me. Mr. Joyce. You also mentioned that there have been some issues with this dike. If the dike should go, all that would be then set loose into the Everglades and the damage would be permanent? Mr. Mast. Should the dike fail, there is also population south of Lake Okeechobee, and that is where people recognize the need for flood control. Nobody is advocating that we not take into consideration the lives that are south of that dike in Lake Okeechobee because if that were to fail, there would be a massive loss of life, and nobody should overlook that, but that is also where it would be very beneficial. One of the things that is not being looked at right now is that lower schedule, that Lake Okeechobee regulation schedule, it is one of the most important things that could be looked at because as every one of those 60-plus projects of Everglades restoration in Lake Okeechobee, dike restoration come online, the Corps of Engineers should be assessing can they take the Lake Okeechobee level an inch or 6 inches or a foot higher, because when you are talking about the hundreds of miles of breadth of Lake Okeechobee, every inch, or every foot that you can add to that lake is billions, and sometimes hundreds of billions of gallons of water that you no longer have to release into unnatural areas, and this is another place where the Corps could really work, but we are not seeing a pathway for them to adjust that with every instance of them making an improvement to the area. They are, instead, looking to wait for about 8 years down the line and just do one adjustment then, and this is that mechanism where you specifically talked about marrying flood control and marrying ecosystem restoration. That is--that is, in my opinion, one of the biggest things that can be done to marry flood control and ecosystem restoration is every time you get something online, look at that regulation schedule and say we can take this many gallons offline going out the East and the West Coast of Florida where it is causing damage. Mr. Joyce. Great. Thank you, Mr. Chairman. Mr. Mast. Yes, sir. Mr. Simpson. Thank you, Mr. Mast. I appreciate you being here today and informing the committee on the issues. Mr. Mast. Thank you. Mr. Simpson. Mr. Gosar. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. PAUL A. GOSAR, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARIZONA Mr. Gosar. Chairman. Well, thank you very much, Chairman Simpson and Ranking Member Kaptur, for the opportunity to testify before the subcommittee. I am Congressman Paul Gosar, and I represent Arizona's Fourth Congressional District. I am also the chairman of the Congressional Western Caucus, the chairman of the House Committee on Natural Resources Subcommittee on Energy and Mineral Resources, and vice chairman of the House Committee on Oversight and Government Reform Subcommittee on the Interior. Critical programs and oversight activities addressed---- Mr. Simpson. Paul, could you turn on your mic? Mr. Gosar. Critical programs and oversight activities addressed by the Energy and Water Development and Related Agencies bill fall under the purview as well. I would like to take an opportunity to discuss several of these today. Last fiscal year's subcommittee bill contained a rider prohibiting any changes to Federal jurisdiction under the Clean Water Act, effectively preventing funds from being spent to implement Waters of the United States, or WOTUS, that rule put forth in 2015 by the U.S. Army Corps of Engineers and the Environmental Protection Agency. The WOTUS rule attempted to assert Clean Water Act jurisdictions over nearly all areas with even the slightest of connections to water resources, including manmade conveyances. Farmers, ranchers, job creators, and private property owners would suffer under this overreaching water grab. WOTUS contradicts numerous prior Supreme Court decisions and seeks to expand agency control over 60 percent of our country's streams and millions of acres of wetlands that were previously nonjurisdictional. WOTUS was slated to go into effect August 28 of 2015, and fortunately, the Sixth Circuit issued a nationwide stay that has temporarily blocked implementation of this new rule. Even more promising, just last week, President Trump signed an executive order requiring the EPA and the Corps to rescind and revise any aspects of WOTUS inconsistent with Federal law. This was great news, and I was honored to join the President in the Oval Office for that signing. While I have great confidence in President Trump and Administrator Pruitt, the review required by the order will take some time and there could be subsequent legal proceedings. Accordingly, Congress must, once again, take a clear position against WOTUS and retain the important provision prohibiting the expansion of the Clean Water Act in this fiscal year's bill. Another important rider from last year's bill that must be maintained defunds the Obama administration's social cost of carbon models. These flawed metrics can be easily manipulated in order to attempt to justify new job-killing regulations. For instance, the Obama administration attempted to justify the EPA's methane rule utilizing the social cost of carbon, stating that the rule would supposedly yield climate benefits of $690 million in 2025. Those speculative benefits, that can be easily manipulated, supposedly outweigh the $530 million the rule is expected to cost businesses and job creators in 2025 alone. The House has passed at least 11 different amendments rejecting the social cost of carbon in the last two Congresses alone. We must block these flood models once again in this year's bill. Now, section 507 of the bill last year, last fiscal year, contained a provision prohibiting the removal of any Federally owned or operated dams in fiscal year 2017. I thank the subcommittee for including this important provision, and, once again, ask that it be retained. In recent years, extremist environmental groups have increased efforts to dismantle and remove Federal dams. These efforts defy common sense, particularly at a time of major water challenges across the west, and with an increasing need for clean hydropower. Electricity generated from the Corps and reclamation dams--operated dams, is utilized by millions of Americans every day. Many of these dams are essential components for flood control, strategic water storage, and live sustaining irrigation for millions of acres of American agriculture. Tens of millions of Americans rely on these dams to supply their drinking water and support their livelihoods. The vital water energy, economic, and ecological benefits provided by the Federally owned and operated dams must be protected. I, once again, ask the subcommittee to retain the important provision prohibiting the removal of any Federally owned and operated dams in fiscal year 2018. Finally, I would like to ask that the subcommittee continue to provide important resources for the Corps of Engineers' construction and investigations budgets. These accounts ensure the timely development of critical water and infrastructure projects that provide benefits for communities throughout the Nation. We must continue to provided adequate resources for the important projects funded by these accounts. I appreciate the opportunity to testify today. The Western Caucus looks forward to coordinating closely with all of you in the future, and thank you, Chairman Simpson. With that, I yield back. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Mr. Gosar. Other questions? Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. I would just like to ask Representative Gosar, for your own district, I don't know it, how many counties it covers and from where do you obtain clean water? Mr. Gosar. We obtain clean water within the State jurisdiction, which is what I have been talking about is the jurisdiction is subsurface water, which is the jurisdiction of the State. Ms. Kaptur. But I am saying for your district, in particular, does it come---- Mr. Gosar. I am talking to you exactly what the majority of my water is from subsurface water within the State of Arizona. Ms. Kaptur. Wells? Mr. Gosar. Absolutely, and the jurisdiction of the State. Ms. Kaptur. Your district is heavily rural? Mr. Gosar. Almost all of it. Ms. Kaptur. Almost all of it. All right. So you don't--you don't receive any of these Federal water projects that exist in the west, your district doesn't benefit from any of that? Mr. Gosar. We border between Arizona and California, so the Colorado always has those infrastructure processes. I have also initiated one in the southern part with Mexico on the lower Santa Cruz that is federally mandated, absolutely. Ms. Kaptur. All right. What percentage of the water that your constituents drink actually then comes from subsurface water, 80, 90 percent? Mr. Gosar. Pretty much. Ms. Kaptur. Wow. All right. Thank you very much. Mr. Gosar. Thank you. Mr. Simpson. Other questions? Hearing none, thank you, Mr. Gosar. I appreciate your testimony and---- Mr. Gosar. Thank you very much. Mr. Simpson [continuing]. Giving us your views on this upcoming bill. Congressman Crist, should I call you Governor? Congressman? Mr. Crist. I can't hold a job. Charlie always works, though. Mr. Simpson. Welcome to the committee. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. CHARLIE CRIST, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. Crist. Thank you, sir. Thank you very much, Chairman Simpson, Ranking Member Kaptur, and members of the subcommittee. It is a great honor to appear before you today. As you know, this is my first chance to testify before an Appropriations subcommittee. For me, it is a special opportunity because your former colleague and former chairman of the full committee, and someone I hold in the highest esteem, the late Congressman Bill Young, who served with you for so many years, was my Congressman for decades. During his time in Congress and on this committee, he did many great things for our Nation, our State and my Pinellas County. Many of those projects live on today, and I would like to talk to you about a few of them this morning. First is the Pinellas County Shore Protection Project. The Army Corps of Engineers, the State of Florida, Pinellas County, and our local communities, have been tremendous partners in maintaining our 20 beautiful miles of beach coastline to protect the people and property along it. Much of the support of this project was generated by the committee, for which I am grateful. I am here to ask for your continued support. The funding you provide for the Army Corps is critical in delivering the resources Pinellas County needs for our beaches. Beach nourishment not only protects public and private infrastructure, it is a great economic generator for our region. A second request I would make of the subcommittee related to fiscal year 2017 is to help us finish a project Congressman Young started back in 2002. The seven members of our Tampa Bay area delegation are sending you a letter asking the committee to help us break through a bureaucratic new start deadlock that has stalled construction of the Port of Tampa's congressionally authorized Big Bend Channel navigation project. This deepening and widening project will improve the movement of goods through the port of the I-4 corridor, essentially, Florida's fastest growing part of the State. It will set the standard for public-private partnership by turning a mere 20 percent of Federal stake in the project into a $55 million economic development initiative that will create 8,000 jobs for our region. My Tampa Bay colleagues and I are not requesting any funding for this project. Instead, we seek language for the fiscal year 2017 bill you are finalizing to clarify it. I want to briefly mention also the Everglades, and I want to give credit to my freshman colleague and one of your new colleagues from Naples, Florida, Representative Francis Rooney. He is championing this effort. He is on the other side of the aisle, and I am grateful for what he is doing. I am incredibly grateful also for the consistent backing by this subcommittee for America's Everglades, and respectfully ask that you continue it. Thank you so much for your time. I appreciate it. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. I appreciate you being here, Congressman Crist. Questions for Congressman Crist? Hearing none, thanks for--thanks for being here today, and we will take those views into consideration as we try to do our 2017 and 2018 budget. Mr. Crist. Right. It will go well. Mr. Simpson. It will be a challenge. Mr. Crist. Yes, sir, of course. We will do it together. Mr. Simpson. Mr. Tipton. ---------- Wednesday, March 8, 2017. WITNESS HON. SCOTT R. TIPTON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO Mr. Tipton. Thank you, Chairman Simpson. I would like to also thank Ranking Member Kaptur and members of the committee. I welcome this opportunity to be able to appear before you and thank you for your interest and priorities of your colleagues as you make difficult decisions on infrastructure and program and investment, particularly in the area of water resources. The Third Congressional District of Colorado has partnered with the Bureau of Reclamation for at least seven decades, working together to develop hugely important and beneficial multi-use projects in southern and western Colorado. These projects have provided necessary water supply, which has sustained our agricultural, industrial, and recreation economies, and continue to help our small communities grow and prosper. I am distinctly aware that the mission of the Bureau of Reclamation is changing, and that the construction of large water supply projects with all Federal dollars is likely a thing of the past, but the partnership the Bureau has with the local water districts and providers remains critical in the semi-arid West, where the development and conservation and management of this finite resource is absolutely essential. The need for this local Federal partnership could not be clearer than the pursuit of the Arkansas Valley Conduit, the last component of the Fryingpan-Arkansas Project authorized in 1962. Since an amendment to that original authorization was enacted in 2009, this committee has provided funding, which has contributed to the completion of the required environmental analysis and the ongoing feasibility work. The current schedule would likely allow for construction to begin in 2019 or 2020. The purpose of my testimony today is to strongly encourage you to provide sufficient funds to move this project forward in a timely, and, therefore, economical fashion and urge you to recognize the interest and responsibility that the Federal Government has in building this project. The water supply for 50,000 people living in the Lower Arkansas Valley is contaminated with naturally occurring radionuclides. Approximately 40 small water providers face the task of finding new water supply or treating the supply they have. The Arkansas Valley Conduit, as a regional rather than a piecemeal solution, is a more functional and more fiscally effective way to meet the challenges for safe drinking water. Many of these small providers from the Colorado Department of Public Health and Environment, for failing to meet the Federal mandated Safe Water Drinking Act standards, should it prove necessary, the State of Colorado has approved a $60 million loan to move the project forward in a partnership with the Bureau of Reclamation. The local water providers are paying for administration, planning, and environmental compliance through quarterly assessments, working closely with the Southwestern Colorado Water Conservancy District to move the project forward. I would like it noted that under the provisions of the 2009 legislation, the revenues generated locally can repay the entire cost over the project. The Fryingpan-Arkansas Project generates revenue by storing nonproject water for a price. Water providers enter into long- term contracts with reclamation to store the water in the Pueblo reservoir. That revenue stream for full repayment makes this project and its financing unique. It should also be noted that the Southeastern District, the State of Colorado, and the Colorado Congressional Delegation are fully aware of the fiscal constraints we face and of the changing mission of the Bureau. To that end, we are working on meaningful cost-saving measures, including use of existing facilities for treatment and delivery wherever possible, and possibly design-build processes. Both of these efforts will save money and deliver clean drinking water faster to the communities who desperately need it. The people of the Lower Arkansas Valley deserve no less than that. It is for their health that the Federal Government creates water quality standards, and the Federal Government has the responsibility to help these communities meet those standards. Thank you, again, for providing me the opportunity to testify today, and I look forward to working with you to ensure the dream of completing the Fryingpan-Arkansas Project as it becomes a reality, and the Arkansas Valley Conduit is built. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Congressman. Mr. Tipton. Thank you for your time. Mr. Simpson. I appreciate you being here today. Are there questions for Congressman Tipton? Ms. Kaptur. Ms. Kaptur. I just wanted to ask the Congressman, thank you so much for your testimony. What a name for a project, the Fryingpan. I just wanted to ask you, these elements, radioactive, either radium or uranium, are these new? Or is it just that they have discovered this now? Mr. Tipton. These are naturally occurring. Ms. Kaptur. Uh-huh. Are there elevated levels of cancer in that particular part of Colorado? Mr. Tipton. You know, I am not sure if there are elevated elements, but under the Clean Water Act, it was a responsibility that the EPA put forward to be able to provide safe, clean drinking water for the communities in the Lower Arkansas Valley. This started back in 1962. John Kennedy actually visited Pueblo, Colorado, for the initiation of this project, so it is long term in coming, and I guess, Representative Kaptur, it is really the responsibility of the Federal Government through this mandate for clean drinking water, which I think we all share and understand it is important for our communities to be able to get this project off of center, to be able to move this forward, and to be able to get it completed. Ms. Kaptur. Thank you. We learned--I learned a great deal from other members, so I just thank you very much for testifying today. Mr. Tipton. Thank you. Mr. Simpson. Any other questions? 1962 to today is only 55 years. That is kind of quick for government work, isn't it? Mr. Tipton. I didn't speak for the government. Mr. Simpson. I appreciate you being here today, and thank you for your testimony. Mr. Tipton. Thank you, Chairman. Mr. Simpson. We are going to take a short break while we await the next individuals that are coming to testify, so we will be in recess for just a couple of minutes. [Recess.] Mr. Simpson. The committee will be back in order. We have with us Congressman Foster from Illinois. The floor is yours for 5 minutes. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. BILL FOSTER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ILLINOIS Mr. Foster. Thank you. Thank you, Chairman Simpson. Mr. Simpson. Microphone on? Mr. Foster. Thank you, Chairman Simpson, Ranking Member Kaptur, for holding this Members' Day, and to all the members of the subcommittee for allowing me to testify today. I am here to, first of all, thank you for your past support for the Department of Energy's Office of Science, and to urge you to continue to prioritize and invest in science. The United States has been at the forefront of innovation and progress, largely due to its investment in scientific research. It has helped raise the standard of living for millions of Americans in our past and represents the best hope for economic progress in our future. But this scientific progress requires us to take a long view. Discoveries are not made overnight, and the experiments need sustained attention and resources for us to learn from them. Scientific investments are not like building a road where you can cancel it and restart it at the drop of a hat. The scientific programs have to be built up over decades, but can be destroyed in a single budget cycle by having their project underfunded. Similarly, our scientific infrastructure requires a long- term sustained funding to ensure that opportunities are not missed. You know, as the only Ph.D. scientist in the United States Congress, I serve as a lightning rod for concerns from science, from high-tech businesses that depend on that science, from academics, and from ordinary citizens who care about the future economic and scientific progress in our country. And so I have heard from a number of my former colleagues in science in the scientific community who are very worried about what the incoming administration could mean for scientific progress in this country. So I would urge this subcommittee to seize the opportunity to put researchers, the companies that depend on that research, and, you know, all-- everyone who cares about science in this country, to put them at ease by providing funding levels that support the critical work for the Department of Energy's Office of Science. There are two specific projects that I want to highlight here today. Both of these are projects that have to have significant construction start money, you know, in the upcoming cycle, or the teams that put them together and are prepared to make them a reality will dissipate. You cannot--you cannot keep projects on hold forever. These two projects are Argonne National Labs Advanced Photon Source Upgrade, and the Long-Baseline Neutrino Facility, and the Deep Underground Neutrino Experiment, so-called LBNF/ DUNE, which represents a collaboration between Fermi National Accelerator Laboratory in Illinois, and the Sanford Underground Research Facility in South Dakota. Starting with Argonne first. The experiments conducted at Argonne National Lab's Advanced Photon Source, or APS, support both discovery science fundamental research, and also market- driven research. Its facilities are used by companies that have products to develop. Pharmaceutical research at the APS has yielded lifesaving new drugs for HIV, for melanoma, and for renal cell carcinoma. Industry chemists have used the APS to develop energy-saving solar shingles, while combustion researchers have developed a process that has led to cleaner diesel engines. And research conducted at the APS led to a Nobel Prize in chemistry in 2012 for the work on what are called G-protein coupled receptors, which are the mechanism at the heart of the addiction mechanism inside people's brain, and so with the heroin epidemic ravaging. This allows scientists to look at these molecules in action, the ones that are at the very heart signaling the cells, the neurons that make the decisions that are affected by opioids. So this is fundamental research. I am not promising that they are going to cure the opioid epidemic this year, but you know, it is only this sort of long-term research that allows us to actually, dream of a cure for this, as well as Nobel Prizes, which as a scientist, I have a certain fondness for. The APS needs to be upgraded to ensure that the American scientists and companies continue to have access to the best scientific equipment in the world. The competition in this area is fierce with dozens, literally dozens of competing facilities under construction, and in operation around the world. But the APS upgrade will use next-generation technology to make the APS hundreds of times brighter, which opens up a vast array of scientific frontiers at the nanoscale that are completely inaccessible at any machine anywhere in the world today. So this upgrade will leverage the existing infrastructure at the Advanced Photon Source valued at about $1.5 billion, while applying a new technology to create a world--a world- leading facility at substantially less cost than building a facility from scratch. And with this upgrade, the APS will become the ultimate 3-D microscope. Without it, the United States will lose its global leadership in X-ray science to Europe, Japan, and China. Robust funding for the Department of Energy basic energy science major items of equipment line will enable the APS upgrade to continue and proceed on schedule, and more importantly, on budget. A funding delay, I should say, on a personal note, that my wife was one of the great accomplishments of the Office of Science, was the completion of the last photon source, light source on time and under budget. My wife was the construction manager for that at Brookhaven National Laboratory. So, but funding delay will add millions of dollars to the total cost of this project. Second critical opportunity where this year's funding is particularly important is the LBNF/DUNE project, which will be critical to maintaining U.S.'s leadership in high energy physics and in fundamental science. This facility, part of which is located a Fermi National Accelerator Laboratory in Batavia, Illinois, where I worked for 25 years, and the other part of which is located in the Sanford Underground Research Facility in Lead, South Dakota, will be the first major international world class facility to be hosted--of its kind, to be hosted by the United States. So getting foreign money flowing into the U.S., in addition to U.S. money flowing to facilities in foreign countries is, to my mind, you know, essential, to having a healthy international scientific collaboration, you know, just a network of scientific collaboration internationally. Neutrinos, which will be studied there, are among the most abundant particles in the universe and our understanding of their nature may provide the key to answering some of the most fundamental questions about the nature of our universe. LBNF/ DUNE would be the most powerful tool in the world to study these particles, and would help solidify the Department of Energy's high energy physics program as a world leader. And so, I am hopeful that the project will receive the $55 million required in fiscal year 2017 to start construction for this project. Again, facilities like this are always in a grow- or-die situation. If you assemble the team and say we are going to start construction and then say, well, maybe not this year, people leave and they cannot be reassembled. Like I say, it is not like just building a highway where you have millions of competent contractors happy to bid on any new section of the roadway. So more than 770 scientists from 150 institutes and 26 countries stand ready to contribute scientifically and economically to the LBNF/DUNE project, if we decide to make it go ahead, and I urge the subcommittee to provide full support and robust funding for the Department of Energy's high energy physics account. Investments in these projects, and in our broader scientific infrastructure, is really the only way to ensure that America remains an international leader in science. You know, we are--in testimony to Congress more than a generation ago, the guy who started--the guy who started Fermi lab was asked, Well, what is all this basic fundamental scientific research that you are doing? How does this contribute to national defense, which is obviously the competition? And he looked back at the committee and said, our research, our fundamental research, has nothing to do with national defense, except perhaps to make our country more worth defending. And that is the heart of the reason that our country should invest in fundamental research like that at Argonne Lab, like that at Fermi lab. If you look back in history, the reason that we respect what the--you know, what the Manichees did in, well, hundreds of years ago in Italy. It is not because they won their wars against their opponents. It is not because they succeeded in economics and commerce. It is because after doing all of that, they diverted a significant fraction of their GDP to fundamental research by the likes of Leonardo da Vinci, and that is why they will remain in the history textbooks forever. And so we should have no lower goal for our country. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. I appreciate your testimony. Are there questions for the Congressman? Mr. Fleischmann. Thank you, Mr. Chairman. Congressman Foster, I want to thank you personally. You and I have worked together on a number of initiatives. Also, for the benefit of the entire subcommittee, the super computing initiative has been so critically important to our country and will remain so. We are in very dire competition with the Chinese. At one point in time, we had the fastest super computers in the world. We have now fallen to third, I believe, in that race, from petaflops to Exascale. I know Argonne is very involved in that, Oakridge as well, but I want to personally thank you for your advocacy for the Office of Science. Oakridge is intimately involved. Mr. Foster. A key collaborator in all of these sort of projects. And, you know, there have been a number of Members of Congress who have taken a little time off because their districts have been hit by tornadoes. Any of you who doubt the power of super computers should look at the simulations of tornadoes where you see detailed simulations of tornadoes trying to understand what affects their formation and how to predict and how they will develop. And so this is just one of the many examples of where super computers at places like Oakridge will really contribute to, the lives of so many in ways that are not often in the front pages of newspapers. Mr. Fleischmann. Congressman, we thank you for your advocacy and for your help on these key critical areas. Thank you, sir. Mr. Simpson. Thank you. Any other questions? Ms. Kaptur. Mr. Chairman, I just wanted to thank Congressman Foster. It must be--just thinking about your life and engagement with all of these very high-level research initiatives and you are a Member of Congress, sometimes it must feel like a fish out of water being in this body. Mr. Foster. I do feel lonely from time to time. Ms. Kaptur. But you are a very effective spokesman, and someone who can put visions for new science in understandable terms, and so your presence is truly appreciated, and you have made that transition very nobly for your constituents but also for the country. Thank you. Mr. Simpson. A fish out of water would be an apt description for all of us. Mr. Polis. Thank you, Congressman Foster. ---------- Wednesday, March 8, 2017. WITNESS HON. JARED POLIS, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF COLORADO Mr. Polis. Thank you, Chairman Simpson and Ranking Member Kaptur. I am coming before a number of the subcommittees to suggest some cuts in appropriations. I know that there are going to be cuts in most of the lines, so I hope to be constructive. In the past, I have offered various amendments to cut spending on the floor of the House, supported both across-the- board cuts as well as particular line items cuts, and I have a few ideas for you here today for your line item. The first major spending line that I would like to recommend a cut for is the Fossil Energy Research and Development line item. This is a line item with an expiration. It is a dead end in the sense that our fossil fuels will be depleted, not only in America and around the world. Markets are already turning away from dirty fuels, fuels like coal and oil, not just for economic reasons, but also for the health and safety of our oceans, our air, and our planet. And so, I would hope that the committee would, rather than invest in the past, invest in the future. The version of this bill that came to the House floor last year actually appropriated $300 million more pork for the oil and gas industry than even the President requested for the fossil research account. I know you have to make some tough decisions. I think this will be an excellent line item to cut, rather than give more pork to the oil and gas industry. We can cut that out and reduce our budget deficit by $645 million. That was what the bill included last year. I would encourage you to zero out that line item, or, at the very least, cut it back significantly. If you do cut the $645 million back significantly, while I hope that the bulk of it goes to deficit reduction, another account that I would--with part of those proceeds, I would encourage you plus up would be the Energy Efficiency and Renewable Energy Fund, which, actually, invests in the future, the future of energy in our country. If we can increase it a little bit, it will help fund national labs, like the National Renewable Energies Laboratory. From 2009 to 2015, EERE's building technology office finalized 40 new or updated efficiency standards for more than 45 household and commercial products, saving consumers money, so it actually saved consumers billions of dollars, reduced carbon pollution, and helped generate jobs in our country. So I think if you want to use some of those funds that you save from zeroing out the Fossil Energy Research and Development Fund, that would be a good place to put some of those, and, of course, I know you have to make cuts overall, so I understand some of those cuts, if not all, would go to the bottom line. I also want to highlight EERE's work with private companies to apply 3-D printing, an additive manufacturing to renewable technologies, particularly making blades of wind turbines. With additive manufacturing, we can reduce the cost of blades, reduce the cost of wind energy, as well as highlight their work on plug-in electric vehicles, particularly the Clean Cities project, which Colorado has been part of, which developed a comprehensive EV and EV supply equipment readiness and implementation plan for our State. Now, there is another account under fossil fuels that I particularly think should be cut, and that is the one that works on oil shale formations with less than 50,000 barrels per day, and frankly, oil shale is one of the most dirty extraction methods out there, and, in fact, the distillation process releases pollutants into the air, including sulfur dioxide, lead, nitrogen oxides. In addition, it uses enormous amounts of water. The BLM reported that mining and distilling oil shale requires 2.1 to 5.2 barrels of water for each barrel of oil produced. Water is scarce across my home State of Colorado. Driving up cost for consumers and farmers is not the answer and not something that this committee should invest in making a reality. Finally, I have another cut. I would like to ask that you address the accelerated timeline of the W80-4 nuclear warhead. In 2015, I joined with my colleague, Mr. Quigley, to offer an amendment that would save $165 million in taxpayer money by placing development of the W80-4 nuclear warhead back to its original acquisition schedule, simply rather than accelerating it. The existing air launched cruise missile and warhead isn't being phased out until the 2030s. There is no risk of having a gap, a capabilities gap. Yet, the 2015 budget sped up the development for the warhead by 2 years to 2025. Fitting the W80-4 nuclear warhead onto the next generation long-range cruise missiles will free up $165 million to put towards reducing the definite and cutting your line item. At a time when the budgets are tight, that is very important. We already have the nuclear scientists disagree on whether our nuclear capability is enough to destroy life on the planet five or seven times. Frankly, I would advocate even deeper cuts in our nuclear capabilities. I would argue that a sufficient deterrent should be blowing up the world once. If you really want to blow up the world twice to be sure, you can do that, but we certainly don't need to blow up the world five to seven times. It is really redundant in terms of offering a deterrence, so that would be another excellent line item to look at cutting as your committee goes about its important work to save taxpayer money. I am happy to yield for any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Are there any questions for Congressman Polis? If not, thank you for your testimony. We appreciate your insight into this bill and your recommendations. Mr. Polis. Thank you. Mr. Simpson. And we will look at those as we try and put this bill together. Thank you. Mr. Huizenga. ---------- Wednesday, March 8, 2017. WITNESS HON. BILL HUIZENGA, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. Huizenga. Mr. Chairman, thank you. Mr. Simpson. Good to be here. Thank you. Mr. Huizenga. It is very good to be here. We are all set. Mr. Simpson. Yours for 5 minutes. Mr. Huizenga. Well, thank you, Mr. Chairman. I deeply appreciate the opportunity to be here in front of you, and Ranking Member Kaptur as well, and the rest of the members of the committee. This is, I think, a very important issue and why I come before you today. I have been very grateful for our work together over the last number of years in efforts to increase the Army Corps of Engineers' harbor maintenance funding, and I think it is important to note that the Consolidated Appropriations Act for 2016 allocated $1.263 billion for harbor maintenance, meeting of the congressional target overwhelmingly supported from the Water Resources Reform and Development Act of 2014, and I thank you for that--that work on that. And while I do believe that that is a very strong step in the right direction, the funding level will represent only 69 percent of the harbor maintenance taxes actually collected, and I believe that full use of the harbor maintenance trust fund is urgently needed to support critical maritime economic activity, especially as we are talking about increasing our infrastructure needs here in the United States, or addressing our infrastructure needs here in the United States. And through that glide path that was established in WRRDA, Congress committed to achieve full use of the Harbor Maintenance Trust Fund through incremental increases over a 10-year period. It is in this spirit that I urge the House Appropriations Committee to stay on a path to full utilization of the Trust Fund and to allocate 1.333 billion for harbor maintenance in fiscal year 2018. That figure would represent 74 percent of the estimated harbor maintenance taxes collected this past year in 2017. And during my first year in Congress, our ports and navigation channels were maintained at just 47 percent of the revenue collected through the HMFT, and having a 74 percent target, obviously, would show just how far that we have come. And by following the authorized glide path, we stopped adding to the maintenance dredging backlog. We had had a growing backlog of harbors that needed to be maintained; however, much more work does need to be done, and I should point that--point out that oftentimes, the Great Lakes doesn't think of--isn't thought of as coastal, or as shipping, or important, but it is a multibillion dollar blue economy that those of us in the Great Lakes region experience every day, and we know the vital importance of having those ports for the economic vitality not only of our States or our region, but frankly, our country and our standing throughout the world. And it was with great pleasure that I had a chance to work with Janice Hahn, previously from Los Angeles on this issue, and it was sort of strange bedfellows that had come together on that, but we made a good team because we were able to make that argument for the entire country. Well, tomorrow, the American Society for Civil Engineers will issue their infrastructure report card, and their last report card gave our water freight movement infrastructure a D for navigation channels, and a B for our ports, and tomorrow's grade, we anticipate, will frankly show very few improvements. The inefficiencies resulting from poorly maintained harbors drive up the cost of U.S. exports and imports, which threaten U.S. economic growth, and we can't sell more Made-in-America products, frankly, if we can't have them leave our harbors. And while many transportation infrastructure programs are struggling to identify beneficiary paid revenue streams to meet those needs, maritime commerce has been paying enough to meet the operations and maintenance of all Federally-authorized harbors for decades. In fact, this funding is especially vital for 140 Federally maintained commercial and recreational ports and harbors in the Great Lakes, many of which are facing a crisis. In fact, 92 of those harbors have not been Federally maintained in years because of a lack of funding directed in that area. At the same time, the Harbor Maintenance Trust Fund has a balance of nearly $10 billion, and I believe that instead of increasing the balance of the Trust Fund or spending the money elsewhere, I urge you to dedicate our Harbor Maintenance Trust Fund tax revenue for its intended purpose, and enough of that has been collected, as I had said, that we would be able to deal with those harbors throughout the country, ranging from the Pacific Northwest to the Gulf Coast to the Port of Long Beach to Muskegon, Michigan, which is in my district. So Chairman Simpson and Ranking Member Kaptur, and the rest of the members, I really do appreciate this opportunity to be in front of you today and to make our case. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for you testimony, Bill, and thank you for your past work on the Harbor Maintenance Trust Fund. We have had many discussions on this and how we can address it. And as you know, I am a supporter of trying to be able to use the full breadth of the Harbor Maintenance Trust Fund, and somehow relieve it from the budget caps and the weird budgeting rules we sometimes create for ourselves, because if you are only using 74 percent of it and you still have a need out there that means you took 26 percent in the bank---- Mr. Huizenga. Yeah. Mr. Simpson [continuing]. And not using it to address the need that you are taxing for us, so it just doesn't make sense. But we still have a ways to go into convincing some of our colleagues that we need to take it off budget, but still subject to appropriation. So I appreciate your work on that. Mr. Huizenga. Thank you, Mr. Chairman. I appreciate that, and I look forward to working with you and the ranking member on this issue continually, so thank you. Mr. Simpson. Further questions? Ms. Kaptur. Mr. Chairman, I just wanted to thank Congressman Huizenga for testifying today and being a very strong advocate for proper investment in our ports and waterways, and particularly because the waterborne commerce and transport is the most cost effective means of moving both cargo and people. I guess I have often wondered why we haven't paid more attention to that. We seem to figure out, well, at least partly, how to do roads and bridges, but when it comes to waterborne with our four coasts, we often neglect the Great Lakes, in particular, so I just thank you very much for coming and testifying today, and I know that our chairman is very open to working on both sides of the aisle, and hopefully we will make a difference this year on the Harbor Maintenance Trust Fund. Thank you. Mr. Huizenga. All right. Thank you. Mr. Simpson. Thank you for appearing here today. Congressman Diaz Barragan. Is that right? Did I pronounce that correctly? ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. NANETTE DIAZ BARRAGAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Ms. Barragan. Yes. Mr. Simpson. Okay. The floor is yours. Ms. Barragan. Thank you, Chairman Simpson, Ranking Member Kaptur, and members of the Energy and Water Subcommittee. I want to thank you for allowing me the opportunity to speak to you this morning. I am going to echo some of my colleague that we just heard from. I represent California's 44th Congressional District. It is the seat that used to be held by Janice Hahn. It includes areas like San Pedro, Compton, and Watts, and it, most notably, has the Port of Los Angeles in the district. It is North America's largest seaport by container volume and cargo value, and I am proud to have that in my district. I am proud to represent the thousands of workers that are directly and indirectly associated with the Port of Los Angeles. It is the largest economic engine in the region, and it touches every single congressional district in this country. The San Pedro Bay Ports Complex, which includes both the Port of L.A. and Long Beach, accounts for one-quarter of the Nation's cargo and supports over 3 million jobs nationwide. As we mentioned, the goods that pass through the San Pedro Bay Port Complex touch nearly every facet of this country. In 2016, the Port of L.A. had its best year in its 110-year history. As our economy grows--continues to grow, so do the size of vessels and freight volumes. When you couple these factors with growing international competition and the fact that the American Society of Civil Engineers gave our ports a C in their report card, it is apparent that more must be done to improve our infrastructure for ports and harbors. My message today is simple: I urge this esteemed subcommittee to fund the U.S. Army Corps of Engineers' navigation program at $2.9 billion for fiscal year 2018 and 2017. Specifically, I urge you to fund the donor ports at $50 million, and to hit the Harbor Maintenance Trust Fund expenditure targets for both fiscal years 2018 and 2017, so that we can remain on the path to utilize 100 percent of the Harbor Maintenance Trust Fund revenues by fiscal year 2025 and thereafter. In June of 2014, the bipartisan Water Resources Reform and Development Act, also known as WRRDA, was enacted into law. You know, one of the most thoughtful provisions of this law was section 2106, which expand the use of the Harbor Maintenance Trust Fund for donor ports, for ports such as Los Angeles. As you know, in the case of donor ports, Harbor Maintenance Funds do not return to the States and harbors where the taxes are collected. For example, in California, California receives only 15 percent back of what the shippers at our harbors pay into the Harbor Maintenance Trust Fund. The San Pedro Bay Ports Complex is among the largest collectors of Harbor Maintenance tax funds with an average of $200 million each year, but we receive only 1 percent back. Section 2106 of WRRDA addresses some of these tax fairness and donor equity issues. The section also authorized appropriations of $50 million for each of the fiscal year's 2015 through 2018. Donor ports are authorized to use these discretionary funds for expanded uses, including berths and dredging of contaminated sediments, environmental remediation, or payments to importers or shippers transporting cargo through that port. The section 2101 of WRRDA see targets expenditures from the Harbor Maintenance Trust Fund increasing each year so that fiscal year 2025 and each thereafter, 100 percent of the taxes collected will go towards the intended purpose and operation of maintenance activities. A full utilization of the Harbor Maintenance tax will only occur, however, if the level of appropriations for the Civil Works Program of the U.S. Army Corps of Engineers is at the fiscal year is increased. In fiscal year 2016, Congress appropriated $25 million in donor ports, of which slightly over $3 million were allocated to the Port of Los Angeles for critical berth maintenance dredging. For fiscal year 2017, the Senate bill contained $50 million for donor ports, while the House bill only contained $10 million. I urge the subcommittee to help our Nation stay internationally competitive by funding donor ports at $50 million for both fiscal years 2018 and 2017, and to hit the Harbor Maintenance Trust Fund expenditure targets. I thank you, again, for the opportunity to speak before you today. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for your testimony. Are there questions? Ken. Mr. Calvert. Yeah, I appreciate your coming in and testifying. I knew your predecessor quite well. We had those discussions often about the Harbor Maintenance account, and also about maybe expanding the definition of the Harbor Maintenance account to go beyond the port facility because part of the problem with a part of--on the part of the Port of L.A./ Long Beach, is getting the freight out and down the Alameda corridor, which we never really completed east of Los Angeles and down to the--and down and out of the L.A. Basin and through the Inland Empire, where we can move that freight out because right now, we just have an overload of freight that is backed up along the main rail corridors, and a lot of that is grade separations and the rest that need to be improved. So maybe in the future, Mr. Chairman, we can work together on what the Congresswoman brought up, and also about the improvements on those rail lines. Mr. Aguilar has the same problem in his district, so it is an issue that we need to address. Mr. Simpson. I appreciate that and would be happy to work with you on it. Thank you for you testimony. Ms. Barragan. Thank you. Mr. Simpson. You bet. Congressman Crawford. ---------- Wednesday, March 8, 2017. WITNESS HON. ERIC A. ``RICK'' CRAWFORD, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARKANSAS Mr. Crawford. Yes, sir. Chairman Simpson, Ranking Member Kaptur, and members of the Energy and Water Subcommittee, thank you for allowing me to appear before you today to provide testimony on the importance of Army Corps of Engineer project funding to the First District of Arkansas. As you know, the Mississippi River and Tributaries Project, or MR&T, is the largest flood control project in the world. MR&T plays an integral role in protecting the Lower Mississippi Valley from devastating floods and enables continuous navigation along the Mississippi River and its tributaries. Since its inception in 1928, taxpayers have received a $46 return for every dollar invested in this project, while preventing $612 billion in flood damages and protecting 4 million residents of the Lower Mississippi River Valley. MR&T also promotes navigation along the river and its tributaries, and helps support a vibrant and agriculture economy. Over 500 million tons of cargo move on the Mississippi River system each year, saving billions of dollars in domestic transportation costs, and giving U.S. businesses a competitive advantage in the global marketplace. I appreciate the continued support this subcommittee provides for MR&T, and I understand that our current fiscal environment forces us to carefully evaluate where each dollar goes. For MR&T to meet its current challenges, an increase in funding over the current CR funding level of $290 million is needed for the program to reach its full capability to protect lives, property, and to support commerce. To achieve its objectives, MR&T requires funding of approximately $500 million. While I recognize the challenging environment of fiscal restraint, I believe that Congress must prioritize the projects that provide taxpayers the best return on their investment. There are few government-funded programs that can boast a 46-to-1 return. MR&T also supports critical water supply projects needed to alleviate the alarming rate of aquifer depletion in the mid- south region. Examples include the Grand Prairie and Bayou Meto surface water projects that are currently under construction in my district. These projects are critical infrastructure investments designed to address the depletion of the Alluvial and Sparta aquifers. The loss of these aquifers would not only result in a severe disruption in the agriculture economy of the Delta region, but municipal and other industrial water uses would also be severely impacted. The U.S. Army Corps predicts the Alluvial aquifer will be commercially useless in the near future, and as a result, 66 percent of the Bayou Meto project area will no longer have access to irrigation, while 77 percent of the Grand Prairie project will no longer be able to irrigate. Unless we deal with this problem now, there will be water crisis in the future that will strike a severe blow to the economy and quality of life in the already distressed Arkansas Delta region. I imagine many of the members of the subcommittee face groundwater problems in the districts they represent, but it is important to note that unlike many Western States, the State of Arkansas does not have access to targeted Federal groundwater protection programs such as those operated by the Bureau of Reclamation. Quite simply, there are no viable alternatives available to my constituents. While we have not yet seen a detailed fiscal year 2018 presidential budget, I am requesting this committee work with me and my staff to find ways to provide water infrastructure projects and adequate funding stream, including potentially revising the report language that authorized expenditures for ongoing work under the MR&T budget. Last year, the water supply projects in my strict barely received enough funding to satisfy existing contractual obligations and staffing needs. Hardly any progress was made on project construction, and we currently find ourselves in a protracted holding pattern with no end in sight. The longer the construction process is drawn out, the more costly these projects become to the taxpayer. The current rate of progress is unsustainable. I understand that the Appropriations Committee has limited resources available, and I certainly applaud the work you are doing to support critical water infrastructure projects. I am very grateful for the subcommittee's continued support for the Army Corps' vital work in the Lower Mississippi River Valley. Please do not hesitate to contact me or my staff as you work through the fiscal year 2018 appropriations process, and I thank you for allowing me the opportunity to testify. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for being here today. Questions? Ms. Kaptur. I do have a question, Mr. Chairman, of Representative Crawford, and that is I am from the State of Ohio, and the entire Great Lakes system is threatened by something called the Asian carp. Mr. Crawford. Yes, ma'am. Ms. Kaptur. How do you look upon that issue in your part of our country? Mr. Crawford. Well, it is actually a very challenging issue, and unfortunately, the introduction of the Asian carp came about as a result of Fish and Wildlife and a management decision they made down in my neck of the woods and without the knowledge of what could happen, and now we see them invading the Great Lakes. They are a very prolific reproductive species. We are looking at potential commercial uses to harvest the Asian carp and find some--find a market in China. There is actually a market for that fish, and there are other markets available, but it is going to continue to be a challenging problem for us, not only in the Lower Mississippi, but as you have seen, it has migrated north into your area. Ms. Kaptur. We have to deal with it in your part of the country in order to prevent it spreading north. Mr. Crawford. Absolutely. Ms. Kaptur. And I know there are different actions being undertaken, but it is completely frightening to our maritime-- -- Mr. Crawford. It absolutely is. Ms. Kaptur [continuing]. And recreational activities up in the Great Lakes. Mr. Crawford. Well, they are dangerous, quite frankly. They pose a physical threat. I mean, they can jump into the boat, if that is not bad enough, and they do that routinely. But there have been documented cases of severe harm and, even death, by hitting individuals on boats because they are big and they are pretty aggressive feeders. Ms. Kaptur. I would hope Representative Crawford and our chairman, who has always been open to our concerns, as we look at this entire Mississippi River corridor, that we assure the various departments and agencies that the State and Federal levels are doing a better job because that is really coming north. Mr. Crawford. I am glad you brought that up because it certainly is a challenge for us, and in my geography, and it is not stopping there. Ms. Kaptur. We almost need an Asian carp task force that-- along the entire length of the Mississippi. Mr. Crawford. That is not a bad idea, and I would be willing to serve on that if such a task force were stood up. Ms. Kaptur. Thank you. You have experienced them first. All right. Thank you so very much. Thanks, Mr. Chairman. Mr. Simpson. Thank you. Thank you, Mr. Crawford, for being here today, and we will certainly look forward to working with you and your staff when we start putting this thing together. Thank you. Mr. Green, welcome. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. GENE GREEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Mr. Green. Thank you, Mr. Chairman and ranking member and members of the committee. I want---- Mr. Simpson. Could you turn your microphone on? Mr. Green. Because over my years in Congress, we have worked together on a lot of issues. I represent a very urban district in Houston, but it includes about half of the Port of Houston, and I appreciate your consideration over the last 25 years or so. Our district is home to the Port of Houston. I share that with Congressman Brian Babin, and the Port of Houston is one of--the number one export terminal in the country. Our port is the major economic engine for eastern Harris County in Texas, responsible for over 56,000 direct jobs, and over $5 billion in State and local tax revenue from business related to the port. In order for the Port of Houston and other port facilities in the United States to grow and support economic activity throughout the country, it is critical for Congress to significantly increase funding for the maintenance and dredging operations for the U.S. Army Corps of Engineers for fiscal year 2018. Increasing funding to the Corps--Army Corps civil works operations and maintenance account is the only way to ensure that the Port of Houston is dredged to the authorized depth of 45 foot, and will be able to accommodate the post-Panamax vessels that are larger and are becoming the international norm for maritime container shipping. The same is true to ports along the Gulf Coast, the Atlantic seaboard, who rely on the Army Corps, dredging to keep our terminals open for business. The other issue in our district and neighboring communities in Harris County surrounding are severely impacted by flooding in recent years. In the past 2 years, the greater Houston region has suffered from two catastrophic flood events on Memorial Day of 2015, and as we call it Tax Day of last year, 2016, that killed 17 local residents and caused billions of dollars in damages. In fact, many people in Houston directly affected by the 2016 Tax Day flood have only recently recovered from the previous year's flood. In response to the growing frequency of catastrophic flooding in the Houston, Harris County, my colleagues, Congressman Al Green, Congressman John Culberson, and I, along with 100 other Members of Congress, introduced legislation last year to authorize $311 million in emergency appropriations for flood control projects. That $311 million, or the projects that have been approved by the Corps, but we haven't been able to fund, and again, we share 10 Members of Congress around the Houston area, and flooding doesn't matter. It gets all of us because we are the coastal plain, and I have bayous and rivers that go through my area, and we are fortunate to have them, although they do silt up our port, too. That is why we have to dredge. The legislation was not enacted, and--but it showed the support, and I would urge the subcommittee to significantly increase the Corps of Engineers' Flood Control and Coastal Emergencies Account. A robust increase in Corps--Army Corps flood projects would greatly benefit communities in Houston and along the Gulf Coast who live in constant fear when the next flood will strike and save billions of dollars in property protected from flood damage. And again, I want to thank you for the opportunity to testify, and, again, thank you for the relationship our--I have had with this subcommittee for many years. I would be glad to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Congressman. I appreciate you being here today, and I know you have got a tough area down there with all the floods that has going on lately, and we look forward to working with you and the other Members from that area to try and address those concerns. Mr. Green. Thank you, Mr. Chairman. Ms. Kaptur. I just---- Mr. Simpson. Questions? Ms. Kaptur [continuing]. Want to echo the chairman's words there. Frankly, Houston has just been battered, your coastline over and over. I really congratulate your community, your citizenry for their stalwartness in face of all of that, and I know we will try to do everything we can to help. Mr. Green. Thank you. Mr. Simpson. Thank you for being here today. Mr. Green. Thank you, Mr. Chairman. Mr. Simpson. Mr. Carter. ---------- Wednesday, March 8, 2017. WITNESS HON. EARL L. ``BUDDY'' CARTER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF GEORGIA Mr. Carter. Thank you, Mr. Chairman, and it is an honor to be with you, and I thank all the committee members. I appreciate this opportunity to share my priorities and concerns for the First Congressional District of Georgia. It is an honor to represent a district that is so geographically diverse and rich in water resources. I look forward to working with you, Mr. Chairman, and the Energy and Water Subcommittee, to address a number of different challenges we are currently facing. I would like to start by saying thank you. Thank you for your continued commitment to working with us to complete SHEP, the Savannah Harbor Expansion Project. As you know, it is the most exhaustively studied, deep-draft project in the Nation and represents a significant economic opportunity not just for coastal Georgia and the surrounding areas, but for the region as a whole. Under the Corps of Engineers' original cost estimate, the Federal Government's share would need to be roughly $100 million annually to keep the project on track and on budget. It is these major deep-draft navigational projects that will be the stimulus for growing our economy. For this reason, I am respectfully supporting a funding request that would ensure robust funding for the construction of deep-draft navigation projects across the country. We are also fortunate to have one of the busiest roll-on/ roll-off ports in the Nation. The Port of Brunswick has also seen tremendous growth with the majority of their increase being roll-on/roll-off in bulk cargo. While this is great news, it is not without difficulties. For years, we have worked with Corps of Engineers and the Georgia Ports Authority to deepen the river to authorize maintenance depth, but the Federal funding has been below needed levels. In addition, compounding shoaling and natural disasters have created additional challenges for the operators of these ships. As a result, I am supporting the need for better funding for maintenance projects across the Nation. With needed attention towards our Nation's operations and maintenance needs, we can keep our water-based infrastructure projects on track. While I have touched on these two major ports, the issue of harbor maintenance is a concern that both this subcommittee and authorizers have addressed before with the Harbor Maintenance Trust Fund. As we seek to grow our economy, we need to have ports that can sustain adequate depths as we transition to the larger vessels making calls. I know, Mr. Chairman, that you remain committed to finding a solution to this problem, and I look forward to working with you to remedy this situation. In addition to the previously mentioned projects, the Tybee Island Shore Protection Project is vital to protecting and sustaining the measures needed to keep the residents of Tybee Island safe from further severe weather events. The recent damage caused by Hurricane Matthew was mitigated thanks to the dune protections that were in place. Phase 2 of the Savannah Channel Impact Study is important to assessing erosion along the shoreline, and to determine the steps necessary to reduce the impacts of future severe weather events. I support sufficient funding under Additional Funding, Shore Protection Investigations, to ensure that Tybee Island, like many other communities, has the protection it needs to survive another disaster. Mr. Chairman, I am extremely appreciative of the hard work that you and your colleagues on the subcommittee do in crafting the Energy and Waters Appropriations bill as we discuss infrastructure development and ways to stimulate our economy, and we need to look no further than the water-based infrastructure stimulating global trade. I deeply appreciate your attention to these matters, and thank you for the opportunity to provide this input. Again, Mr. Chairman, I thank all of you for your work, you and your committee members for your work. These deep-draft navigational ports are extremely important, as you know, and I am not exaggerating when I say that SHEP, the Savannah Harbor Expansion Project, is the most, without question, the most investigated project that we have ever had. It is the most exhaustively studied deep water project that we have had. We have been doing this now for going on 20 years, and still haven't completed that project. This is funding that we desperately need, not for the First District of Georgia, not only for the State of Georgia but for the whole southeast United States. This is an impact that we can have on the whole southeastern portion of the United States. I thank you, Mr. Chairman, and thank all of the committee members. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for being here today, Mr. Carter. We appreciate it very much. Other questions? Ms. Kaptur. Mr. Chairman, I would just like to ask Congressman Carter--thank you for your excellent testimony. Mr. Carter. Sure. Ms. Kaptur. Could you just explain to us who don't come from your part of the country, how the changing nature of the ecosystem, the weather and everything has impacted your area? You talked about shoaling up, you talked about silting up, what is going on? In a bigger sense rather than just the port, the deep water port, what is happening in the region? Mr. Carter. Well, keep in mind where we are. If you know the geography of the United States, Savannah is somewhat inland. Remember that the--Florida comes up and then it kind of shifts east and goes--and the eastern shoreline goes up, so Savannah is accessible to more areas within the southeast, just because of our location on the coast. We are more inland than the outer ports are, and that causes some problems, in and of itself, when you talk about some of the geographical problems that we have and some of the changes that we have, and particularly in the weather. It is both advantageous, and, at the same time, it can be a hindrance to us. It is advantageous because it makes us closer to a lot of the geographical areas and a lot of cities along the eastern seaboard, along the eastern United States. We don't have to travel as far to get there, but at the same time, it does cause a lot of silting and a lot of filling in of our ports, and we have to have a lot more maintenance. Ms. Kaptur. Is there more wave action, or what is happening? Mr. Carter. There is. Our tide shift in this particular area is more than just about anywhere else in the United States. We have alternating tides. We have tide shifts of 7, 8 feet at times, and that is just unheard of in other areas in the country. Ms. Kaptur. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Thank you. If there are no other questions, thank you, Mr. Carter. We appreciate it. We look forward to working with you on your---- Mr. Carter. Thank you, Mr. Chairman. I appreciate you especially, and your help on this and all the committee members. Mr. Simpson. You bet. Mr. Johnson, thank you for being here today. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. MIKE JOHNSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF LOUISIANA Mr. Johnson. Thank you, Chairman Simpson, and Ranking Member Kaptur, and my colleagues and distinguished members of the subcommittee. I want to thank you for this opportunity to testify in front of the Energy and Water Development Subcommittee on the importance of developing and maintaining Louisiana and the Nation's water infrastructure needs. Today, I ask the committee to help fund dredging needs that will provide much-needed resources related to flooding and navigation benefit, and not forget the tremendous benefit that shallow draft waterways and ports have in bringing jobs back to the United States. The role our inland waterway systems play is an integral part of our Nation's maritime system, and it is critically important to our prosperity as a country. In my district, Louisiana's Fourth District, some our biggest challenges and yet some of our greatest opportunities revolve around port infrastructure and further development of the navigation of our rivers. We have four shallow draft port authorities which service 485 miles of navigable waterways and shallow draft river miles. As many of you are aware, the Red River in northwest Louisiana experienced an historic flood, even in June of 2015, which affected 21 of our parishes. This flood, along with a series of other recent flooding events, have significantly damaged our navigation structures, and they are currently threatening the maintenance of the channel and the safety of our residents. An immediate issue that was identified was how far off the actual river's flood stage crest was from the projected crest, which is based on a 1990 flood of record. The flood crest in 2015 was significantly higher than the flood crest in 1990, with less volume of water measured at the Shreveport gauge, which is our primary gauge there. The higher flood stage caused significant damage to homes and agricultural land and businesses, our oil and gas industry, and our public infrastructures. In order to determine the reasons for these discrepancies, a sedimentation survey and hydraulic model from the Army Corps of Engineers is necessary. The $1.5 million study is authorized under the existing J. Bennett Johnson Waterway Project, Construction's General Account. Unfortunately, only $250,000 was allocated in fiscal year 2016. Robust funding is desperately needed to help projects such as this come to fruition. If this survey and the model are not completed and analyzed, the 350,000 acres, and approximately 58,000 residents of the area, will continue to suffer from future flood events. It is imminent. A second major issue concerns the protection of our major infrastructure. River levels have come within feet of entering many structures in Bossier City on the other side of the river from Shreveport. Due to the damaged river profile, it is highly likely that levees need to be raised and flood walls constructed to protect existing infrastructure. FEMA has stated that the Federal methods used to regulate development of the special flood hazard areas would have to be reevaluated due to ongoing discrepancies, which were on full display during the 2015 flood event. However, in true-to-form fashion, FEMA cannot provide a final base flood elevation, or BFE, or a flood insurance rate map, FIRM, it can't do those updates without the Corps' sedimentation study and the hydraulic model. Funding the sedimentation survey would allow FEMA to do their job, and, thus, further protect the people of Louisiana by completing updates to the BFE and the FIRM. In addition to these studies, the Red River has several other immediate items which were in need of Federal action and funding. I ask the committee to continue to work with me on the ongoing needs related to dredging so that river navigation for a 24/7 industry can be maintained. These funding priorities will not only help protect constituents, but it will improve business development for opportunities not only for Louisiana, but also Texas and Arkansas. Navigation funds through the Corps are truly needed to ensure and maintain a 9-by-200 foot channel. Without this, businesses will not only take elsewhere to invest, those that already have invested in north Louisiana will probably leave. The planned goal is to get a 12-foot river depth to ensure adequate competition with nearby rivers, such as the Mississippi and Arkansas Rivers. A request for an investigation to change the authorized depth from a 9-foot to a 12-foot channel has been initiated. Repair for damaged buoys, locks, and levees along the Red River are also needed. The construction features of the J. Bennett Johnston Waterway Project are only 93 percent complete. The Alexandria Front Dike Reinforcement Construction project and the J.H. Overton Lock & Dam 2 Lower Approach project are examples of two that can compete for funding with the construction general account resources for these projects, and those will help to aid in completion of the J. Bennett Johnston Waterway. A final example of where navigation funds are needed is the Ouchita-Black Rivers Navigation project. Previously, the fiscal year 2017 budget request for the navigation project was 8.5 million, and additional maintenance account funds will allow this project to compete for the additional funds necessary to keep the waterway open for commercial navigation in the next year. I am out of time. I just want to strongly urge this subcommittee to invest in our ports and waterways so that our local communities can continue to build vibrant economies, and I stand ready to work with each of you and the administration in developing meaningful solutions to better maintain and enhance our Nations's vast water infrastructure system. And I am grateful for your time and your diligence on all these important needs. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Mr. Johnson. I appreciate you being here today. Mr. Johnson. Yes, sir. Mr. Simpson. Other questions? Ms. Kaptur. Mr. Chairman, I gather we don't have another witness right away, so I am just going to take 30 seconds to-- -- Mr. Simpson. Okay. Ms. Kaptur [continuing]. Thank Congressman Johnson very much but to ask you if you have any theories about why the flood crest in 2015 was significantly higher than the flood crest in 1990. What is happening in your part of North America? Mr. Johnson. It is an excellent question, and the subject of much conjecture in our district. The prevailing theory seems to be that sedimentation has settled on the bed of the river, and that the Army Corps did not take that into account when they set that flood level, and so it is a substantial rise. We have lots of sedimentation on the Red River, and it has just built up over time, and so it was just something no one factored in apparently, as crazy as that sounds, and it was a gross underestimation. The--combine this flood with the flood that we had in south Louisiana several months later, we had the fourth most costly flood crises in American history in our State, and we are struggling to recover so---- Ms. Kaptur. Are you getting more rainfall? Mr. Johnson. Let's hope not catastrophic levels. Ms. Kaptur. I guess what I am saying, are you getting more rainfall in shorter periods of time or larger volumes of rainfall? Is that contributing to the problem or not? Mr. Johnson. I don't know that that has been assessed to be the problem. I know there was an historic rainfall event in States just to our north, and, of course, it flowed down to us. And so it wasn't even really the rainfall levels in northwest Louisiana that caught us; it was rainfall in Missouri and Oklahoma and other areas, and it just came to us. We are doing our best to prepare for future events, and we are deeply concerned, pun not intended, that we could have a catastrophic event if these things happen again, so---- Ms. Kaptur. Thank you. Thank you very much, Mr. Chairman Mr. Simpson. Thank you. Thank you for being here today. We appreciate your testimony, and we look forward to working with you and your staff. Mr. Johnson. Thank you so much. Mr. Simpson. You bet. We are going to be in recess for just a few minutes. We have three more people that are here to testify, and they should be here shortly. We should be done in the next 25 minutes or so when they get here, so we will take a brief recess until they come. [Recess.] Mr. Simpson. The committee will be back in order. Thank you, Mr. Wilson, for being here. We look forward to your testimony today. The floor is yours. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. JOE WILSON, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF SOUTH CAROLINA Mr. Wilson. Mr. Chairman, thank you, and with Ranking Member Kaptur, what an honor to be here with both of you. This is kind of a show of bright faces here. Thank you. And then, excuse me, Congressman Fleischmann, too. I was not anticipating such extraordinary people, so thank you very much. I appreciate the opportunity to meet with you today. First, I would like to thank Chairman Mike Simpson for his leadership as chairman of the House Appropriation Subcommittee on Energy and Water. I am grateful to represent South Carolina's Second Congressional District, a diverse and thriving community that is home to vital national security environmental cleanup missions. Today, I will specifically address the necessity of fully resourcing the very positive and proven missions at the Savannah River site and the Aiken-Barnwell community that I represent adjacent to Augusta, Georgia. The Savannah River site is home to the mixed oxide fuel fabrication facility, MOX facility, a valuable part of our nonproliferation and nuclear security. The MOX facility is currently 70 percent completed, and when completed, will be the Nation's only facility that can convert weapons grade plutonium into green fuel. The--and bring the United States back in compliance with our international nonproliferation agreements. I am confident that after examining MOX with clear unbiased data, it will be apparent that completing MOX is in the best interest of our national security. The Savannah River National Laboratory conducts cutting edge research supporting our Nation's ability to produce tritium, to monitor and detect capabilities for nuclear nonproliferation, and to conduct nuclear forensics. It researches and provides improved technologies for safely storing and transporting high-level radioactive waste. Additionally, the laboratory continues to make advancements in electrical grid security, studying electromagnetic pulses, EMPs. The Savannah River site is home to other critical Department of Energy nuclear security and environmental cleanup missions as it safely processes Cold War era nuclear materials into stable materials that can be stored for later disposal. Last year, the site completed construction of the salt waste processing facility, greatly enhancing the speed and efficiency of the remediation of high-level waste. Other critical facilities include H-Canyon, the Nation's only production scale nuclear chemical separations plant, and both K and L areas where--which safely store nuclear materials. Now, all the missions at the Savannah River site are vital to bolstering our national security capability and safe environmental stewardship. Since 1952, the Savannah River site has played a critical role in processing and disposing of high-level defense waste. However, the Savannah River site was never intended to be a long-term option for high-level waste. It lacks the ability to serve as a permanent repository. The only viable permanent repository is Yucca Mountain, which is environmentally secure. I strongly urge the Appropriations Committee to allocate funding specifically for the completion of Yucca Mountain license application. Abandoning Yucca Mountain in favor of a nonexistent alternative would leave the communities across the United States, including the South Carolina-Georgia Central Savannah River region to bear the burden of storing nuclear waste the Federal Government has promised to remove. Additionally, American ratepayers have put enormous resources to completing the nuclear storage facility at Yucca Mountain, including $1.5 billion from the ratepayers of South Carolina. I believe that the completion of the license application will highlight the technical merits and alleviate any environmental concerns for its neighbors. I appreciate the difficult decisions the committee must make as we begin the appropriations process for fiscal year 2018. Thank you for your time. I urge you to continue supporting the vital missions at the Savannah River site and at Yucca Mountain. Thank you and would be happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Congressman Wilson. Mr. Fleischmann. Mr. Fleischmann. Yes. Congressman Wilson, I want to thank you for your advocacy today, and also, to let everyone here know, the EM mission nationally is so critically important. I know Savannah River has a project, Idaho has a project, Oakridge has literally decades worth of work, Hanford. We can literally look all across the country, and I would like to urge, as you have done, participation in our bipartisan nuclear cleanup caucus. It is one of the fastest growing caucuses in Congress. Ben Ray Lujan is my cochairman. We work very well together to advocate, and when a particular site has either had a deficiency or has a need, we have been able to address that in a very effective way. So thank you for your advocacy. Savannah River is a critically important site as is Oakridge, and I appreciate your testimony here today, sir. Mr. Wilson. Thank you very much. And indeed, it is so positive to me to see the working relationships between the various sites across the Nation. It is really inspiring to see how positive it is and look forward to working with Congressman Lujan, too. I have worked with him on a number of issues, and this can be bipartisan and positive for the national security of the people of the United States. Mr. Simpson. Thank you, Mr. Wilson. Ms. Kaptur. Ms. Kaptur. Thank you. I just wanted also to thank Congressman Wilson for testifying today and bringing forward the importance of waste--nuclear waste disposal. I am hoping that in any new infrastructure bill that is proposed that the cleanup issues will be also considered for inclusion and both for the types of waste that you specify in your testimony as well as spent ordinance, which is a big problem in many places in the country and other ingredients that have been a part of our defense and nuclear complex. I think this could be a job creator. It is work that we have had backlogged on our accounts for years and years and years, and I think you could be an important voice in that. So along with the rest of us. So I just thank you very much for testifying this morning. I thank you, Mr. Chairman, for the time. Mr. Simpson. Thank you, Mr. Wilson. Thanks for your testimony, and we look forward to working with you on this year's budget. Mr. Wilson. Again, what leadership here. I am just honored to be in your presence. Thank you very much. Mr. Simpson. Thank you. Again we will be in brief recess until our next witness comes. [Recess.] Mr. Simpson. The committee will be back in order. We are happy to have the Honorable Sheila Jackson Lee with us today. I look forward to your testimony. The floor is yours. ---------- -- -------- Wednesday, March 8, 2017. WITNESS HON. SHEILA JACKSON LEE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF TEXAS Ms. Jackson Lee. Thank you very much to Mr. Simpson and Ms. Kaptur. Thank you to this committee for its work that I think strikes an enormously bipartisan and nonpartisan cord, because all of us are concerned about major elements of clean water, clean air, and certainly energy for this Nation. So I wish to highlight the energy, water, and U.S. Army Corps of Engineers programs, which warrant the committee's continued attention and support. I will speak quickly about some initial ones so that I can focus on something that I think you have seen me on the floor confronting, and that is the flooding in Houston, Harris County, and, certainly, flooding that we have seen over the last couple years around the country. First of all, I support the $1.26 billion for Harbor Maintenance Trust Fund. Particularly, Houston Port is a manmade port. We face these issues of continuing to have to maintain the port so that it is viable for the major vessels that come in. As you well know, through the opening of the Panama Canal in its full force, the Houston Port will become busier than ever, and the dredging that is necessary is crucial. We continue to debate the question of how much money we send to the United States and how much money we receive, but I support the $1.26 billion for the importance, if you will, the importance of helping not only the Houston Port, but around the Nation. I support the $230 million for the Weatherization Assistance Program. WAP helps low income seniors, and I support that greatly as it relates to their energy efficiency. I support $2 million for the U.S.-Israel Energy Cooperation Program, robust funding for the DOE's Wind Energy Program in the State of Texas. We have taken wings, if I might say that. The wind program is unbelievable to both the chairman and the ranking member. It is particularly outside of our urban centers. It is in our rural communities. Our farmers are welcoming the windmills and asking, how many more can be placed on my land while I continue to do my--the commitment to the agriculture business that I have? So I am really supportive of expanding this program as a continuing substitute, or complement, to energy needs in the United States. I support $2.9 billion for energy efficiency; $5.672 billion for DOE Office of Science, in particular, working with the NIH and the President BRAIN Initiative, we will develop the next generation tools and technology to support research into the brain. I support $84 million for the National Network for Manufacturing; support $70 million for the State Energy Program. And now to the U.S. Army Corps of Engineers. This is a lifeline in Harris County. We have the Harris County Flood Control District. We just had a report assessing that some of the work that we have done may have helped, or may be helping a neighborhood that has suffered flooding almost two years straight, with loss of life. And that is really striking in an urban area. This is a residential area where people were lost by their vehicles, either flooding into the bayou, which is what we have, or they themselves flooding into the bayou. One particularly sad incident was firefighters who rescued two seniors and another individual. These seniors had just from come the graduation of their granddaughter, and because the storms were so bad, the family said, why don't you head home, not wait till the program is over, and they, unfortunately, got flooded out, I think even as they were getting out of their car. They were rescued by firefighters, but the boat toppled over, and they--both of them lost their lives. So this is in the urban area of Houston. And so the Army Corps of Engineers does vital work. The appropriations funds studies to determine the need, engineering feasibility, and economic and environmental return to the Nation of potential solutions to water and related land-resource problems, pre- construction engineering and design, and related data collection, interagency coordination research are very, very important. The Army Corps of Engineers plays a critical role, and it certainly is important to us. I was pleased that the fiscal year 2017 energy and water spending bill provided that the Secretary of the Army may initiate up to six new studies, and that five of those studies should be in areas where the majority of benefits are derived. I am optimistic that these provisions will be retained in fiscal year 2018, and that one of these new studies selected will be the Houston Regional Watershed Assessment Flood Risk and Management Feasibility Study that I have advocated for. Such a study is certainly needed to give the frequency and severity of historic level flood events in recent years in and around the historic Houston metropolitan area. I have asked for this for $3 million. We have never had a study of whether--how the bayous work together, and whether our improvements really work, and so this would be a great necessity. Let me quickly try to conclude by noting on April 15, 2016, an estimated 240 billion gallons of water fell in the Houston area over a 12-hour period, which resulted in several areas exceeding the 100- to 500-year flood area. The May 2015 Houston flood destroyed 3,015 homes, left eight persons dead. The economic damage caused by the 2015 Houston flood is estimated at $3 billion. The damage from 2016 is estimated at above $2 billion. Not a hurricane; just rain. And our city is filled with bayous. So, Mr. Chairman and Ranking Member, minimizing the risk of flood damage to the Houston and Harris County metropolitan area, the Nation's fourth largest, is a matter of national significance, because the region is one of the Nation's major technology, energy, and financial report--export, and medical centers. So I support $2.8 billion for operation and maintenance; $6 billion for coastal ocean data system; but, particularly, advocate for the study that I hope we can receive and so that we can assess the effectiveness of the tax dollars that we have received, the tax dollars that we hope to receive, and the effectiveness of making sure that we could be even a model for how you address the question of urban flooding in a location that is 50 feet below sea level, even though we are a few miles in from the Gulf. So I thank you all very much for the work that you do and ask your consideration. Thank you so very much. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Representative Jackson Lee. We appreciate you being here today. And Marcy, do you have anything? Ms. Kaptur. I just want to thank Congresswoman Jackson Lee for her excellent work and her indefatigability--Is that a word? Did I say it properly there? --on many fronts. And I have to say, all of the members of this committee, or the subcommittee, are very concerned about Houston and what has happened to you, the stalwartness it has taken for your people to come through the flooding, and wondering, you know, what the proper solutions are for--the proper engineering solutions are for an area like yours. We have also heard from witnesses from Georgia, Louisiana, and Florida, all along the southern part of the United States, the silting up of ports, the severity of storms, and now you are here as one of our final witnesses today. So it does make us wonder how to prepare our country for the future in this century, and so your information is very valuable to us. And I only have one question. In addition to that general concern about what is happening to our general weather patterns and environmental security along the southern part of our country, the entire question of your deep water port at Houston and how what is happening in the Panama Canal is impacting you? Could you expound on that just a little bit for it record, please? Ms. Jackson Lee. I would be delighted. And I would say it is a positive impact, and that is because of the new potential direction of the ships getting through much faster. Our port, which is now very close to the Panama's new route, so the Panama Canal's new routes that allow these ships to come through coming from the west and the east. We are seeing an increased use and higher tonnage coming into the Houston Port, which is a very large port, we are 10th in the world, but we are a manmade port, and we have to have dredging on a regular basis. And in order to maintain the viability of those ships and the income that comes in there, and also to be a contributor to the Nation's economy, because we do, we need to have the kind of maintenance that is intense and we need funding for that intense maintenance. So what I was saying is that it is a positive impact, but we are not a natural port, and that means we have to work at maintaining the port. And the port leaves the larger waters and comes into us up a 50-mile run that we have drudged to create the port, which is really right almost inside Houston, Texas, so inside city limits; our port comes into the city limits of Houston, and surrounding neighborhoods are there as well. So we have had a number of other issues that we have dealt with with the port being there, but the surrounding residential neighborhood has accepted the port, the port has tried to be a good neighbor, but all those concerns face us as a manmade port. Ms. Kaptur. Thank you very much. Mr. Simpson. Thank you. We appreciate your testimony and look forward to working with you as we put this budget together. Ms. Jackson Lee. I thank you, Chairman. Might I have a special appreciation to Ranking Member Kaptur, who took note the $3 million study in the last debate on the floor and her staff was very helpful to our office, and we are most grateful to you and for your leadership here, and to the chairman, for both of you working so well together. Thank you. Mr. Simpson. Thank you. Ms. Jackson Lee. I yield back. Mr. Simpson. And, again, we will be in recess for a couple minutes as we are waiting for our last individual to come and testify. [Recess.] Mr. Simpson. The committee is back in order, and will receive testimony from Congresswoman Watson Coleman. The floor is yours. ---------- Wednesday, March 8, 2017. WITNESS HON. BONNIE WATSON COLEMAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW JERSEY Mrs. Watson Coleman. Thank you so much, Chairman. And thank you, Ranking Member Kaptur. I want to thank you for this opportunity to testify today on the agencies and programs under the jurisdiction of the Energy and Water Development Appropriations Subcommittee. The Army Corps' Civil Works Program covers a wide range of water resources activities that are essential to the public health and safety. I appreciate the important work this subcommittee has done in ensuring adequate funding for the Army Corps programs in previous years, which has benefited many of our communities and constituents. In past years, groups like the Greenbrook Flood Commission have used targeted Federal investments under the Civil Works Program to improve quality of life by expanding on water resource development activities like recreation and flood risk management. The Civil Works Program has also allowed the U.S. Army Corps of Engineers to strengthen its relationship with our communities through its projects that have enhanced quality of life for thousands of people. The Greenbrook Flood Commission, which supports 13 different municipalities in my district, has already provided rejuvenation and relief to residents by completion of components of the Greenbrook sub-basin project through flood control programs. This project encompasses an area that has been ravaged by extreme flooding, which has caused extensive property damage, and even the loss of life. Over the course of nearly 40 years, the U.S. Army Corps of Engineers project manager for this project has worked to ameliorate the extreme flooding conditions through the construction of extensive levees, flood walls, and pump stations. In fiscal year 2016, the Army Corps Civil Works Program received approximately $6 billion in funding. Providing the Corps with the sufficient funding for fiscal year 2017 and 2018, it is critical to keeping projects like this moving forward, especially knowing that certain projects like this one have previously languished due to a lack of funding. Projects like this one also help build a stronger and safer America by constructing durable and sustainable infrastructure that prioritizes the protection of life and property. They also help modernize our communities and reduce the risk of damage from natural resources, while promoting job creation and environmental stewardship. So, again, I want to thank the chairman and the ranking member for this opportunity to testify, and hope that Congress will continue to support the robust funding for such critical programs. And with that, I yield back. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. We appreciate your testimony today. Questions, Ms. Kaptur? Ms. Kaptur. No, Mr. Chairman, but I do want to thank Congresswoman Watson Coleman for testifying today and for your support of the Corps. As we move forward here this year, we are expecting something on infrastructure from the administration, completion of many of these projects, augmentation around the country of work already underway could be a part of that measure, so I just wanted to put that on the table as we accept your excellent testimony. Mrs. Watson Coleman. Thank you very much. And, Mr. Chairman and Madam Ranking Member, I just--I want to apologize for being a bit late. I was testifying downstairs. It is just one of those days. Mr. Simpson. It is one of those days. We appreciate it. You weren't late, actually. Mrs. Watson Coleman. Oh, good. Thank you. Mr. Simpson. But we appreciate you coming. We appreciate all the members that came to testify today. Their comments will be included in the record. And I would also remind members that might be listening that our member request day is closed on April--database closes on April 6, so have the individual member requests in to the subcommittee so they can start working on them. But thank you very much, Bonnie---- Mrs. Watson Coleman. Thank you. Mr. Simpson [continuing]. For coming here today and testifying before us. And we look forward to working with you and your staff as we put this bill together. Mrs. Watson Coleman. Thank you. Mr. Simpson. Thank you. Mrs. Watson Coleman. Appreciate it very much. Mr. Simpson. The hearing is adjourned. TESTIMONY OF INTERESTED INDIVIDUALS AND ORGANIZATIONS ---------- -- -------- Wednesday, May 3, 2017. CITY OF TYBEE ISLAND WITNESS JASON BUELTERMAN, MAYOR, CITY OF TYBEE ISLAND Mr. Simpson. The hearing will come to order. Thank you, all of you, for being here today. This is the first time this Committee, I think, at least in my memory, and I have been on it for a long time, has had public witnesses. And I think it is a good idea and we have--also, because we have had the time this year, because we have not been able to have any other witnesses because we have not got a budget yet and probably will not until the end of this month, so we thought it was a good time to have the public witness hearing and hear what all of you thought is important in this bill and things we ought to be considering as we draft this bill. I would like to welcome everyone to the Energy and Water public witness hearing. This morning members of the public will testify on issues that are important to them under the jurisdiction of this subcommittee. Each witness will have 5 minutes to present their testimony. Remember that your full testimony, the written statement, will appear in the hearing record. Members of the subcommittee may ask questions of the witnesses, but we would have a better chance of staying on schedule if we all work to keep this moving. We have to be done at 12:30 and we have 27 witnesses it looks like, so I am going to keep to the 5-minute rule. So, would Ms. Kaptur have an opening statement? Ms. Kaptur. Thank you, Mr. Chairman. I am just so happy we can all be together this morning. I want to thank you for your leadership and for this public witness day. I welcome these days in particular, of the testimony that will come before us, and they are both valuable and I would say quite motivating for those of us on this subcommittee. I look forward to hearing from all of the interested parties today on what you believe important to be in our bill. And with that, I will close my remarks. And thank you, Mr. Chairman, for arranging this important opportunity for all of us to work together on behalf of the Nation's best interest. Mr. Simpson. Thank you. Our first panel is Mayor Jason-- pronounce your last name for me. Mr. Buelterman. Buelterman. Mr. Simpson. Buelterman, kind of throws my tongue in the middle, Buelterman, okay. Mayor and Derek Brockbank, welcome to the committee and the time is yours. Mayor, first. Mr. Buelterman. Thank you very much. Good morning. I want to start by thanking Subcommittee Chairman---- Mr. Simpson. Is the microphone on? Mr. Buelterman. I want to start by thanking you all for the opportunity to present before you today. My appearance before you is to underscore the need for increased appropriations to the U.S. Army Corps of Engineers investigations account, specifically additional funding for shore protection investigations that the committee has provided in the past. I want to use an example for my own city of Tybee Island, Georgia, to demonstrate what I believe is a pressing need for these funds across many coastal regions of the country. For those who may not be aware, Tybee is a barrier island located about 18 miles east of Savannah, Georgia. It is the eastern most point in the State of Georgia and is known for being a popular recreational destination for the region, as well as a vacation spot among tourists from outside the Savannah metropolitan area and is also home to about 3,000 full-time residents. The sandy shoreline of Tybee is of significant value. While it is important to the city and region as a recreational venue, its primary purpose, the beach that is and the dunes, is to provide protection against damages caused by storms and coastal flooding. Recently my community suffered significant damage due to Hurricane Matthew. The total damage to Tybee amounted to at least $3.4 million. Those damages would have been far greater had our Federal Shore Protection Project not been in place. The Tybee Island Shore Protection Project was authorized by Section 201 of the Flood Control Act of 1965. It provides periodic renourishments estimated to be every 7 years until the end of the 50-year project life, which expires in 2024. The City of Tybee is working to extend the project's authorization and bolster its dune system. The Savannah district office of the Corps, at the request of our city, made a funding request for the President's fiscal year 2018 budget to fund what is called Phase II of the Savannah Channel Impact Study. Phase I of this study determined that approximately 73 percent of the erosion of Tybee shelf and shoreline is caused by impacts from the manmade federally authorized Savannah harbor shipping channel. Under law, the Federal Government is responsible for mitigating damages caused by its own navigation projects. Phase II of this study, which is one of the reasons I am here, will determine what measures will be recommended to address the erosion. The study will be all encompassing, including assessing adding dunes to the existing Federal Shore Protection Project and assessing the severe erosion that has occurred along the shoreline of the northern end of our island. This portion of our island, although it is adjacent to the shipping channel, is not part of the current Federal Shore Protection Project and has been severely impacted by shipping traffic using the Savannah channel and will face even greater erosional impacts due to the channel's ongoing deepening. I urge the House Committee on Appropriations to provide sufficient funding to enable the funding of the Phase II study. I also want to highlight another issue that I respectfully ask the subcommittee to keep in mind as you determine future funding needs for shore protection projects. One of the major lessons of Hurricane Matthew and Superstorm Sandy was a massive amount of money that did not need to be spent in Federal post-disaster and flood insurance costs due to the existence of manmade dunes. I have given all a one-page--two pictures here on one sheet of paper. These two photos you have before you illustrate my point. The top photo of is of a beach town right up the coast from the second photo at the bottom of a town called Harvey Cedars, New Jersey. Both aerial shots were taken right after Superstorm Sandy. The town in the top photo, and I am not going to identify which one that is, did not have manmade dunes. The bottom photo is of a town that wisely did have manmade dunes. These dunes were built as part of a newer Federal Shore Protection Project by the Army Corps of Engineers. It is estimated that about $1.3 billion in Sandy-related damages were saved by the existence of Federal Shore Protection Projects in New York and New Jersey alone. Dunes are not part, however, of many older Federal Shore Protection Projects, such as the one on Tybee. Because of the time of the creation of projects, dunes were not considered in the 1970s to be a big deal and to be essential for protection for coastal communities. I urge the subcommittee to consider adding additional shoreline protection funding with the appropriate report language, noting that a portion of the additional money is to be used to expedite adding a dune element to older projects using the existing cost-sharing percentages for those projects. If the Corps is required to produce a straight forward report on those projects designed prior to 1986 where dunes were not included in the project design, you will see that Tybee Island is not alone. Thank you again for the opportunity to appear before you today. So the slow erosion of our beach is caused by the fact that sand that would otherwise drift to our beach naturally, gets stuck in the manmade shipping channel. Whereas the immediate impact from Hurricane Matthew had a very significant one-time event. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Mr. Brockbank. ---------- Wednesday, May 3, 2017. AMERICAN SHORE AND BEACH PRESERVATION ASSOCIATION WITNESS DEREK BROCKBANK, EXECUTIVE DIRECTOR, AMERICAN SHORE AND BEACH PRESERVATION ASSOCIATION Mr. Brockbank. Thank you. Thank you for having me. My name is Derek Brockbank. I am the executive director of the American Shore and Beach Preservation Association. Founded in 1926, ASBPA is dedicated to preserving, protecting, and enhancing our coast by emerging science and public policy. We represent the Nation's coastal practitioners--the industry, the local government officials, and academics who build, restore, and maintain our Nation's coastline. The City of Tybee Island has been a member for many years now. I am here today also to speak for natural coastal infrastructure, why beaches, high vegetative dunes, and vibrant wetlands protect communities from coastal flooding and storms, saving lives, protecting property, and reducing disruptions to the local economy. Simply put, natural coastal infrastructure is a wise fiscal investment, saving the Federal Government money by reducing post-disaster recovery costs. As you heard from the mayor, the Army Corps of Engineers has estimated that investment in shore protection saved $1.3 billion of damage in New York and New Jersey and $1.9 billion in damage total during Hurricane Sandy. Coastal protection is also a jobs bonanza. In addition to construction jobs, restoring and maintaining coastal infrastructure supports lifeguards, fishermen, hotel workers, waiters, and the plumbers and technicians who work in coastal towns. So what needs to be funded? To protect our coastal communities and support coastal economies, the United States needs to, A, construct coastal protection and restoration projects; B, manage sediment as a resource, not a waste product; and, C, collect data and do coastal research to ensure that coastal projects will protect the people and assets they were designed to protect. To meet long-term funding needs, Congress should invest $5 billion over 10 years in beaches, dunes, and wetlands as part of a national infrastructure package. But to maintain existing capacity, we respectfully request that the fiscal year 2018 Energy and Water Appropriation includes the following: One, provide at least $75 million to the Army Corps for shore protection. Shore protection or coastal flood risk management are the funds the Corps uses to construct and renourish beach and dune systems that protect vulnerable coastal communities. While the administration's budget has consistently left shore protection unfunded, Congress has reliably added funding to this critical Corps mission. After steady declines in shore protection appropriations, we were pleased to see a slight increase to 50 million in the fiscal year 2017 omnibus. However, with our Nation's coastal communities increasingly vulnerable to severe coastal storms and the inevitability of the next major hurricane, we ask that you return shore protection funding levels to at least that of fiscal year 2014. The current Army Corps capacity for shore protection is $165 million annually, which was requested in a Dear Colleague letter led by Representative Wasserman Schultz as well as Congresswoman Frankel and fully supported by ASBPA. Our request of at least $75 million is less than half what the Army Corps could accomplish and should be the minimum appropriated. Two, provide $5 million for implementation of the beneficial use of dredge material pilot program that was authorized in the WIND Act and provides $6 million increase to regional sediment management to develop sediment management strategies for the South Atlantic Coastal Study also authorized in the WIND Act. The WIND Act was a major bipartisan success last December and authorized a number of good coastal programs that require the Corps to manage sand and sediment, which are the building blocks of coastal protection projects as a resource, not a waste product. The Beneficial Use of Dredge Material Pilot Program authorizes 10 projects around the country to innovatively use sediment dredged from navigation channels for coastal protection and/or environmental restoration. ASBPA has heard that Corps districts have submitted more than a hundred projects for this new program. Clearly the interest is there. What the program lacks is funding. We request $5 million for the full implementation of Beneficial Use of Dredge Material Pilot Program. This South Atlantic Coastal Study covers one of the most vulnerable regions in the world for hurricanes from North Carolina, to Mississippi, and the Caribbean Islands. The full cost of the study is estimated to be 10 to $14 million, but an initial Federal investment of $6 million to the Corps' Regional Sediment Management Program would allow parts of this study that were previously authorized to begin in earnest and cut the cost of the study in half. Finally, we request that you maintain funding for coastal data collection, including coastal ocean data systems, national coastal mapping programs, and Coastal Field Data Collection Program. Without good coastal data, Federal projects and even local projects cannot be properly designed. Given the Federal jurisdiction over the ocean and coast, this data acquisition must be via Federal agencies. So we ask you to at least maintain current funding levels for these key programs. ASBPA is grateful to your subcommittee and Congress for funding the Coastal Flood Risk Management Mission of the Corps. Of course these programs are but a few small pieces of a much larger investment needed to prepare our coastal communities for increasingly intense coastal storms and hazards. Improved coastal resilience will take coordination across multiple Federal, State, and Local authorities. It will also take a large-scale dedicated funding investment in coastal infrastructure. However, a good first step in protecting coastal communities is ensuring all shore protection, regional sediment management, and coastal data acquisition are appropriately funded. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Ms. Kaptur. Ms. Kaptur. Yes. I want to thank Mr. Brockbank for your excellent testimony. I really agree with you on beneficial reuse, but I have a question. On page 5 of your testimony, you mentioned the Atlantic, the Gulf, and the Pacific coasts. Why did you not include the Great Lakes in the Coastal Data Information Program request? Mr. Brockbank. Pure error and I apologize. Ms. Kaptur. I just wondered. That is really important. Mr. Brockbank. You are absolutely right and I apologize for that. Ms. Kaptur. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Thank you for your testimony. We look forward to working with you. Mr. Pete Rahn, the Maryland Department of Transportation. ---------- -- -------- Wednesday, May 3, 2017. MARYLAND DEPARTMENT OF TRANSPORTATION WITNESS HON. PETE RAHN, SECRETARY, MARYLAND DEPARTMENT OF TRANSPORTATION Mr. Rahn. Good morning, Mr. Chairman, Ranking Member, members of the committee. Thank you for inviting me--sorry. Thank you for inviting me to discuss the importance of the U.S. Army Corps Engineers Civil Works funding to the Helen Delich Bentley Port of Baltimore, an economic engine not just for Maryland and the region, but for our Nation. Ports are the key links to U.S. access, to the global transportation network, and Federal navigation channels provide access to these facilities. I thank the Committee for continuing to invest in maritime infrastructure and commerce, especially with respect to essential dredging projects that keep our shipping channels, our maritime highways safe and open for business. This is a high priority for the Hogan administration, which is why the Maryland Department of Transportation requests that Congress ensure adequate funding in the fiscal year 2018 budget, including $75 million for the Poplar Island and its expansion, $800,000 to initiate design for the Mid-Chesapeake Bay Island Project, $30.4 million in operations and maintenance funds for dredging the Baltimore harbor and channel's 50-foot project, and $12 million to maintain a depth of 35 feet in the C&D Canal and approach channels. The Port of Baltimore generates about 13,000 direct jobs and about 128,000 jobs linked to port activities. It is noteworthy that the average income for a port direct job is 16 percent higher than the average Maryland salary. The Port of Baltimore was just recognized for the third consecutive year as the most efficient U.S. container port. We handle more cars in roll on, roll off, heavy farm, and construction machinery than any other U.S. port. The Port of Baltimore ranks first among all national ports in handling many commodities that are essential to our economy, such as aluminum, sugar, gypsum, cars, trucks, and equipment. We are ranked second in the Nation for exporting coal. Out of 190 major U.S. ports, Baltimore ranks 9th in the value of foreign cargo and 14th in foreign cargo tonnage. Our public-private partnership agreement with Ports America Chesapeake and the availability of a 50-foot deep container berth has positioned the Port of Baltimore to attract cargo growth associated with last year's Panama Canal expansion. Our tonnage increased 9.3 percent in the first 8 months since the Canal opened. The port's coal business has also increased significantly over the same period, as these ships need deep water, too. It is critical that the Port of Baltimore deliver sufficient long-term dredge material placement capacity to support maintenance of a 50-foot deep channel in terms of both depth and width to capitalize on that anticipated growth and maintain our existing business. If the Port of Baltimore is the economic heart of Maryland, our shipping channels are the arteries. With more than 130 miles of dredged channels, we work with the Corps of Engineers to keep our channel system open. Maintaining the shipping channels is critical to the continued success of the port. Approximately 4.3 million cubic yards of sediment must be removed annually to maintain Federal channels and anchorages at their authorized depths and widths. Keeping the main Chesapeake Bay channels open for shipping relies on placement of dredge material at Poplar Island and its expansion as well as construction of the Mid-Chesapeake Bay Island Project. The Paul S. Sarbanes Ecosystem Restoration Project at Poplar Island will provide an additional 28 million cubic yards of dredge material placement. The Mid-Chesapeake Bay Island Project is critical, because it will provide 40-plus years of capacity. Federal funding is essential to enable Mid-Bay Project at the time it is needed and to avoid deauthorization in calendar year 2021. Federal funding for Corps dredging has been constrained over the last several years, and continued constraints will negatively impact the port. We believe that $25 million per year is needed to fully dredge the channels to Baltimore. The C&D Canal is also an essential part of the port's shipping channel system providing the shortest route to open water for vessels traveling between Baltimore and points north. Maryland remains fully committed to working with our Federal partners to deliver safe, efficient, and cost-effective maritime commerce infrastructure in Maryland. Thank you again for the opportunity to testify. I would be happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Mr. Rahn. I appreciate you being here today and this is not the first time, or the last time, I suspect I will hear about port--harbor maintenance and dredging. Mr. Rahn. I would suspect not, Mr. Chairman. Mr. Simpson. Thank you. Mr. Rahn. All right. Thank you. Ms. Kaptur. Mr. Chairman? Might I just say that the fact that you have named your port in memory of our dear Congresswoman Helen Delich Bentley gets my attention. She was one of my closest friends during my congressional service and I congratulate you for that. So my eyes are wide open on your request. I wanted to ask you, what do you do with your dredge material? Mr. Rahn. If I may first comment on your first comment about Helen and having the port named after her, she was actually alive for the last 12 years that it has been named after her. So she was able to actually know the honor that had been bestowed upon her for her huge activity in developing the Port of Baltimore. She was an amazing woman with an amazing vocabulary. The question where we put it, so we have two sites, or three, for the Feds, for Federal placement? Three. So we have three sites for Federal placement, but for the Corps, and then we have two additional sites that we use for the harbor dredging that we do as a State to keep the harbor open. Ms. Kaptur. Do you use it or do you just store? Mr. Rahn. Right now we are storing it, but we are looking for ways to reuse it. In fact, our State Highway Administration is changing their regulations to allow the placement of the dredge material into highway projects. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Mr. Frazier. ---------- Wednesday, May 3, 2017. SOUTHEASTERN FEDERAL POWER CUSTOMERS, INC. WITNESS MICHAEL FRAZIER, SECRETARY, SOUTHEASTERN FEDERAL POWER CUSTOMERS, INC. Mr. Frazier. Thank you, Chairman Simpson, Ranking Member Kaptur, and members of the subcommittee. My name is Michael Frazier and I am appearing today on behalf of the Southeastern Federal Power Customers in support of funding for Southeastern Power Administration, also known as SEPA, and the hydropower program administered by the U.S. Army Corps of Engineers in the Southeast. The Southeastern Federal Power Customers is a not-for- profit corporation that was formed over 25 years ago to support the interest of electric taxpayers that received the benefit of the Federal Power Program in the Southeast. The members of the Southeastern Federal Power Customers are customer-owned municipal utilities and rural electric co-op that purchased the Federal resources provided by the Army Corps hydropower projects and use that hydropower with other generation to keep electric rates as low as possible. As you are aware, the power generated by the Army Corps hydropower projects in the Southeast is marketed by a separate agency under the umbrella of the Department of Energy. That agency, Southeastern Power Administration, SEPA, markets, sells, and arranges transmission for the power that the Army Corps projects provide. Our request to the subcommittee today is straightforward. The Southeastern Federal Power Customers are asking the subcommittee to authorize the use of receipts of at least $6 million to allow SEPA to continue to meet its statutory mission of providing the power in the southeast to consumer-owned utilities at the lowest possible rate consistent with sound business principals. This request to the subcommittee can be easily met, because of the authorization for SEPA to use its receipts is considered neutral from a scoring proposition. In other words, funding this organization does not cost the subcommittee in terms of allocated dollars. Funding SEPA makes sense from a number of other perspectives as well. Authorizing SEPA to use receipts for program direction leverages revenues for the U.S. Treasury. Over the past four years SEPA has returned over $1 billion to the U.S. Treasury. Over the same period of time, it has been authorized to use roughly 28 million for program direction. It is a program that works for the Federal taxpayers. The program also includes other components such as the authorization to use receipts to wield the power and firm up power supply contracts. The subcommittee approves funding for these activities through the authorization to use receipts for purchase power and wielding activities. Like program direction, this funding authorization is also neutral from a scoring prospective, because the receipts or payments for these activities are received in the same year in which the expenditures are made. The payments for these activities are typically passed through charges on a customer's bill, which means that the expenditures are reimbursed rather than absorbed by SEPA. Let me emphasize an important point about the Federal power program that SEPA administers. The cost of the Federal power program are recouped and paid for by the ultimate beneficiaries. There are too few Federal programs that can make that point. For those of us that endeavor to keep the electric rates as low as possible for our taxpayers, our rate payers, we truly appreciate the support that this subcommittee has traditionally given to SEPA. We are also grateful for the support that this subcommittee has provided to the Army Corps hydropower program in the Southeast. As I mentioned earlier, the power market by SEPA comes from the Army Corps projects. The Army Corps' costs associated with hydropower are recovered in the rates charged by SEPA. However, Congress must still appropriate the funding for the Army Corps' operations and maintenance programs in the first instance to keep the power plants running. Although these expenditures are not treated the same as SEPA's direct program authorizations for scoring purposes, the subcommittee should be aware that the appropriations for the Army Corps hydropower program come back to the U.S. Treasury and the receipts paid for by the hydropower customers in the southeast. Every dollar put into the hydropower projects is returned to U.S. Treasury over time. In fact, I would encourage the members of the subcommittee to consider that funding the Army Corps hydropower program facilitates the payments to the Treasury, because the hydropower--if the hydropower equipment is not maintained, SEPA cannot sell the power which generates the revenues that I mentioned earlier. In conclusion, we ask that the subcommittee support SEPA's direct program, be it no less than $6 million, no less than $80 million for purchase power and wielding activities, and no less than $75 million for the Army Corps hydropower programs to be used in the Southeast. Thank you for listening and I will be happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. We look forward to working with you and the other PMAs in trying to get some power that actually works. Thank you for your testimony today. Ms. Kaptur. Thank you, Mr. Frazier. Could I just ask over how many States does your authority exist, just Georgia? Mr. Frazier. The Southeastern Federal Power Customers, we--all the States that the SEPA covers, so North Carolina, South Carolina, Georgia, Alabama. There is probably a couple more. Ms. Kaptur. All right. Thank you. Mr. Simpson. Thank you. Mr. Bean, welcome to the committee. It is good to see you again. Time is yours. ---------- Wednesday, May 3, 2017. PUYALLUP TRIBE OF WASHINGTON STATE WITNESS DAVID BEAN, COUNCILMAN, PUYALLUP TRIBE OF WASHINGTON STATE Mr. Bean. [Speaking native language.] Good day, honorable relatives and friends. My name is David Bean. I am from the Puyallup Tribal Indians. I am here today on behalf of my chairman, Mr. Bill Sterud. We appreciate the opportunity to testify regarding the fiscal year 2018 U.S. Army Corps of Engineers Civil Waterworks Resources Construction Budget. We especially want to thank Mr. Chairman Simpson for your continuing support of Indian Country, both in your capacity here on this committee as well as your former capacity as chair of the Interior Appropriations Committee. We are continuously taught by our late uncle, Billy Frank, to tell your story. I am here today to tell you our story about our treaty right and the resource. We are also taught by his father, Billy Frank, Sr., that all natural things, our brothers and sisters, we have a responsibility to take care of them. If they take care of the fish, the fish will take care of us. In particular we ask the subcommittee's support for the Army Corps' work to replace the Buckley Diversion Dam and Buckley fish trap on the White River in Washington State. This work is necessary, so the United States can honor our treaty rights and meet its obligations under the Endangered Species Act. The estimated cost of this work right now is 50- to $100 million. In addition to funding, we request report language to direct the Army Corps not to consider this project a new start construction project. This is necessary, because right now even if the Corps received the funding, there is a current directive by OMB not to engage in any new start projects. This seems ridiculous to us, since the planning and design for this project has been ongoing for more than a decade. To put this into perspective, Mr. Chairman, we started this process with your former colleague, Congressman Norm Dicks. In addition to the existing facility, 77 years old, far exceeding its intended service life and replacement structures would be more accurately referenced as updates. Since time immemorial, my Tribe has fished for salmon in the White River and the Puyallup River. My family has fished on these rivers for generations. We continue to do so this very day as treaties guarantee our right to fish from these rivers. My Tribe relies on salmon for subsistence, ceremonial and cultural purposes, as well as an economic resource. Now, three species of salmon are listed under the Endangered Species Act. They include the spring chinook, bull trout, and steelhead. Putting our treaty right in jeopardy, if there are no fish, simply there are no rights to exercise. Together the Buckley fish trap and Buckley Diversion Dam compose one facility located on the White River, which empties into the Puyallup River farther downstream. Since the dam completely obstructs the salmon's migration to their spawning grounds, the Corps installed the fish trap in a hold facility to serve as a pathway for the fish to prevent their extinction. Now the fish trap is 77 years old. It is completely outdated. It was never designed to accommodate the runs of pink and coho salmon, which quickly overwhelmed its limited handling capacity. The limited fish handling capacity often creates delays where fish are backed up for a mile or more at the facility. This causes stress, delay, injury, and ultimately spawning mortality for all the fish, including those on the endangered species list. It is long past time to replace the facility and several studies and biological opinions agree. Pursuant to the most recent National Marine Fisheries Service biological opinion, the Corps is required to replace the Buckley Diversion Dam and fish trap by 2020. If funding is not provided to continue the planning and construction of this project, this simply will not happen. Because of the state of this facility, fishing season on both Puyallup and White Rivers was almost entirely closed to both Tribal and sports fishing last year. Thus, the impact of the Corps' failure to do its job, honor its trust responsibility to try to end Endangered Species Act, not only directly impacts Tribes' guaranteed treaty right, but the sports fishing industry in Washington State as well. Fishing is a multimillion-dollar industry in the region and the health of these runs is critical, not only to the Tribes, but to the economy of the Northwest. One thing we are taught by elders that what affects one of us, affects all of us. We respectfully request that Congress include funding in the fiscal year 2018 Army Corps of Engineer civil works budget for the Buckley Diversion Dam and fish trap by 2020 sufficient to ensure that construction of this facility is complete by 2020. This is necessary to ensure the Puyallup Tribes treaty rights are protected. With that, I want to close by saying thank you. We are appraisingly thankful to you for this opportunity to talk with you here today. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, David. It is always good to see you again and hear your testimony. Any questions? Ms. Kaptur. I have no questions, but thank you very much for being here today. Mr. Simpson. Thank you. We look forward to working with you on this. Joseph Pavel. ---------- Wednesday, May 3, 2017. SKOKOMISH TRIBE OF THE WASHINGTON STATE WITNESS JOSEPH PAVEL, TRIBAL NATURAL RESOURCE DIRECTOR, SKOKOMISH TRIBE OF THE WASHINGTON STATE Mr. Pavel. Good morning, good afternoon. I am Joseph Pavel, natural resources director for the Skokomish Indian Tribe. Thank you, Chairman Simpson, Ranking Member Kaptur, for this opportunity to testify on behalf of Army Corps of Engineers' appropriation in the amount of $13,168,000. This is the result of the development of an Ecosystem Restoration Project, one of three that was approved and authorized by Congress, and the recent Watershed Improvements Infrastructure Nations Act--Improvements for the Nation Act, that is as much as I am going to read. I would like to stress that this particular project addresses issues in the Skokomish River, the most frequently flooded river in Washington State, if not the Nation. You may have observed, or noticed, this is the river famous for the salmon swimming across the road. You have seen it. It is true and it is real and it is often. So we signed on with the Army Corps in 2006, a cooperative financing arrangement with our partner, Mason County, and let me stress, this is a cooperation between Tribal government and local government of Mason County of Washington State, so I believe I could speak on their behalf in support of the project as well. Then in 2012, we kind of got the first results of that that it would not be practical as a flood control project, but we could continue to develop the feasibility as an ecosystem restoration project. As I mentioned, we started in 2006. These Army Corps general investigation studies have a reputation to tend to run long and over cost, so this particular general investigation is the first one that was completed under a new edict of 3 by 3 by 3: $3 million, 3 years, 3-inch binder. So this is the poster child of the new and improved and efficient Army Corps of Engineers. As far as I am aware, this is the farthest any of these ecosystem restoration projects has gotten. We are just looking to get this funding. The local school sponsors are responsible for a matching cost share. We have developed the resources to meet that obligation. Timing is of the essence, though. We have built momentum. We need to keep this moving. We need to get this project done. I would like to also mention that the Tribe, the county, and others have made significant investments in the watershed most notably. The city of Tacoma is a hydro project. We did an FERC relicensing of those. It is quite well known. But we were able to secure significant contributions from the city of Tacoma. This watershed has been worked really hard. We hold that the United States, the Federal Government, sanctioned the actions of the city of Tacoma and they have some responsibilities to step up and assist with the remediation and the restoration of this watershed, as well as that hydro project. The upper watershed has logged 90 percent clear-cut dense roads, very heavily impacted environmental from Federal Department of Agriculture lands. So there is some accountability there. Great wealth has been obstructed from this watershed and has supported the industry of the city of Tacoma, their tax base, supported the industry, the forced products industry, and that has generated a great tax base. So it is time to return some of that wealth, put some of that wealth back to work on behalf of the resources that the Skokomish Indian Tribe depends on, essential to our recovery of Chinook, summer trim salmon, bull trout, steelhead. The Skokomish River is a significant contributor to Puget Sound recovery. We will not ever have a recovery of our endangered species at Puget Sound until we can address these recovery efforts in the Skokomish River. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Joseph. You going to ask him? Ms. Kaptur. As I listened to the testimony this morning, including Mr. Pavel, I just have to say how important I believe an infrastructure bill is to this country. I will be one of the chief advocates for the backed-up projects for the Corps across this country. It could be one of the greatest job creators we could have. Let us hope we can move the country toward that point. Thank you. Mr. Simpson. Thank you. Jackson Brossy? ---------- Wednesday, May 3, 2017. NAVAJO NATION WASHINGTON OFFICE WITNESS JACKSON BROSSY, EXECUTIVE DIRECTOR, NAVAJO NATION WASHINGTON OFFICE Mr. Brossy. Hello. My name is Jackson Brossy and I am the executive director of the Navajo Nation Washington Office. Thank you for this time to be here. I think it is important that we are here. Energy and water are two of the biggest issues facing the Navajo Nation today, so thank you. I want to address four different areas that impact the Navajo Nation, and this committee can help us grow our economic infrastructure. First, we see an area for the Bureau of Reclamation to help us out to support funding for an economic transition in light of the closing Navajo Generating Station. Second, we see an opportunity for the Bureau of Reclamation to support us in existing and building out new water infrastructure. Third, we see an opportunity for the U.S. Army Corps of Engineers' water programs to assist in further expanding our water infrastructure. And finally, the U.S. Army Corps of Engineers can help us with abandoned mine remediation. So I will start with the Navajo Generating Station. The generating station is a public-private partnership of coal-powered electrical generation on the Navajo Nation. And Congress was involved in creating this public-private partnership. And the reason we are here before you is the United States Government is an owner in this public-private partnership through the Bureau of Reclamation. However, less than a year ago, these non-Navajo owners decided that they wanted to divest and shut down this plant. So closure of this plant would be devastating. A recent Arizona State study estimated that closure would--the impact could be $18 billion over a span of 30 years. So any investment in this project has the potential to save billions of dollars in an area where there is an untenable 40 percent unemployment rate. So we seek a number of different proactive areas, including building out a railroad that will give us access to outside markets. We seek assistance with training for potential job losses in the thousands. And Congress is uniquely positioned to help us in this issue. I would like to transition into water infrastructure, another problem we have. There are about 15,000 homes in the Navajo Nation or about 30 percent in the Navajo Nation live without access to running water. That situation is absolutely untenable in 2017. And the Navajo Nation has been and continues to do everything we can to address this. We look at several different funding sources, including our own, and we put our money where our mouth is. And recently, this Congress passed--well, two Congresses ago passed the Navajo-Gallup Water Settlement. We ask for continued funding of the Navajo-Gallup Water Settlement in fiscal year 2018, and we also ask that the expired Rural Water Act of 2016 be reauthorized, so that we can work with the Bureau of Reclamation on different projects, including a 990,000 agreement we have with the Bureau of Reclamation to connect with other existing water sources, so that we can get access to water for these folks on the Navajo Nation that do not have access to running water. The Navajo Nation also requests funding for the Bureau of Reclamation Native American Affairs Office. The Navajo Tribe, as well as other Tribes, take advantage of this office, and they help plan and coordinate and assist in a variety of projects. Transitioning to the U.S. Army Corps, Section 205 of the Flood Control Act of 1986 authorizes the Corps to assist local communities in reducing flood risk through their Small Flood Risk Management Program. We support reauthorization and funding for that program. The Navajo Nation also requests funding for Section 520 of the Water Resource Development Act for the Navajo Nation flood plain mapping. There are currently unspent Navajo Nation funds tied to this authority, so are our own funds, that the U.S. Army Corps of Engineers cannot spend without additional appropriations. The Navajo Nation requests that $500,000 be appropriated into this authority to match Navajo Nation funds that we are already planning on investing. And finally, transitioning to mining, there are a number of abandoned mines in the Navajo Nation that were created during the Cold War. Some of these mines were not properly decommissioned and some of them are still open today. This has created a tremendous health crisis on the Navajo Nation and we ask that the abandoned mines reclamation program be fully funded so that we can build out a database. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Are these mostly uranium mines? Mr. Brossy. There are more than--there are about 500 uranium mines in the Navajo Nation and about half of them have not been remediated. And the United States was the sole customer of these, and so, obviously, the Federal Government has the responsibility to clean this up. Mr. Simpson. Thank you. Mr. Brossy. Yeah. Ms. Kaptur. Mr. Chairman, I want to thank the gentleman for testifying and just ask, could you repeat the number of homes on the Navajo Reservation that lack access? What percentage of the individual---- Mr. Brossy. Fifteen thousand homes, about 30 percent of the homes in the Navajo Nation. Ms. Kaptur. A third? Mr. Brossy. Yep. Ms. Kaptur. Thank you. Mr. Brossy. It is an untenable problem, and we are putting our money where our mouth is, but we asked for additional help from every single source possible. Mr. Simpson. Yeah, we saw that firsthand when we were out there. Mr. Brossy. Yeah. Mr. Simpson. What was it, the year before last, I guess? Mr. Brossy. Yeah, you rode on our dirt roads and---- Mr. Simpson. Yes, I did. Mr. Brossy [continuing]. Last year. Mr. Simpson. Yes. Mr. Azure. How are the mines secured currently? How are the abandoned mines secured currently? Mr. Brossy. Many of them are not secured. Some of the larger ones are covered. I am not, obviously, an engineer in the space, but there are mines that our Navajo Nation president saw last year that were wide open. They had doors that had been broken and people and kids and animals could go in there. Mr. Azure. Thank you. Mr. Simpson. Thank you, Mr. Jackson. Mr. Floyd Azure. ---------- -- -------- Wednesday, May 3, 2017. ASSINIBOINE AND SIOUX TRIBES OF THE FORT PECK RESERVATION WITNESS FLOYD AZURE, CHAIRMAN, ASSINIBOINE AND SIOUX TRIBES OF THE FORT PECK RESERVATION Mr. Azure. Thank you. Thank you for allowing me to be here. Good afternoon, Chairman Simpson, Ranking Member Kaptur, and the members of the subcommittee. My name is Floyd Azure. I am twice-elected chairman of the Assiniboine and Sioux Tribes of the Fort Peck Reservation, located in northeast Montana. Please continue to do the good work you have done in the past years to finance the completion of the Fort Peck Reservation Rural Water System. The project is a joint Tribal/non-Indian rural water project, which Congress authorized in 2000 with enactment of Public Law 106-382. The legislature authorized the construction of a rural water system to ensure a safe and adequate supply of municipal, rural, and industrial water for some 10,000 residents of the Fort Peck Indian Reservation, and the citizens of Roosevelt County, Sheridan County, Daniels County, and Valley County, which border our reservation. At full build-out, the project is estimated to serve 30,000 Montanans. For fiscal year 2018, we seek approximately $27 million, with $14.7 million of those dollars for the Tribal portion of the water system, and $12.2 million for the Dry Prairie part. We hope that you will act favorably on our request, even though we do not have a congressman. Our congressman, Mr. Ryan Zinke, you will have his back and we will look out for his Montana constituents while he serves the entire country as Secretary of Interior. Mr. Simpson. That is somebody more important. Mr. Azure. To fund our request for fiscal year 2018, I ask the subcommittee to support an appropriations of $50 million for additional funding for ongoing rural water projects, a modest $3 million increase above the level this subcommittee recommended fiscal year 2017. This fund would supplement the specific funding for the Fort Peck Dry Prairie Rural Water system that is included in the President's annual budgets. This project grew out of necessity. Harmful levels of sulfates, irons, and brine contaminated our groundwater. We needed an alternate water source. We operate the water intake located in the Missouri River pumping station, a 3,000 square foot water treatment plant, and hundreds of miles of pipeline. Our two systems are interconnected and pump through our treatment plant. We are making our Tribal water rights available to Indian and non-Indian communities as our contribution to this effort. If our fiscal year 2017 construction funding is close to the $16 million we received for the project in fiscal year 2016, we will be two-thirds complete with the $300 million project, with 16 years of Federal appropriations totaling just over $2 million. We learned last month that our project is now ranked second by the ABOR among the Tribal rural projects. I ask that you do not abandon your work to complete the construction. We have completed two of the three main trunks of the rural water system connecting the Dry Prairie on the west and the east of our reservation, and continue to lay hundreds of miles of water lines to serve our new communities. As appropriators, you know that any delay in completing a project such as this only increases the cost to American taxpayers. It makes no sense to cut Federal spending for authorized rural water projects when the president, States, and union Tribes are all calling for infrastructure projects to be completed to help create American jobs and promote economic development, especially in rural communities. Safe and reliable water is essential to our communities' health and economy. In conclusion, I urge this subcommittee to reject the administration's request to cut fiscal year 2018 appropriations for Bureau of Reclamation rural water projects and other nondefense agency appropriations critical to rural America. Federal appropriations are required to finance the completion of this important rural infrastructure project. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, and if any of the committee members that--the last two people to testify, if you have not been out on some of the Reservations and seen the needs in terms of water and so forth, it is amazing what is going on. I have been very involved in trying to get the Cheyenne River Sioux Eagle Butte Water System completed out there that have a dire need, but it is throughout Indian country that we need to make sure that we maintain--it is amazing, in today's age, that people do not have access to fresh water, which is just incredible. So it is not only us, it is the Interior Committee also that has been working on it and stuff, so appreciate it. Thank you. Ms. Kaptur. Mr. Chairman, I just say for all of the Tribal representatives who are here today, I would urge you to work together and invite the President of the United States to your Reservations and to make sure that the infrastructure bill that they are considering over there--and it is a new administration, so they got a lot of issues--but that they see you, and, you know, you might get him to come. Mr. Azure. Thank you. Mr. Simpson. Thank you, Floyd. Dr. Elmer Guy. Mr. Guy. Thank you. Thank you, Mr. Chairman. I am Elmer Guy, president of Navajo Technical University. Mr. Simpson. Is your microphone on? ---------- -- -------- Wednesday, May 3, 2017. NAVAJO TECHNICAL UNIVERSITY WITNESS DR. ELMER GUY, PRESIDENT, NAVAJO TECHNICAL UNIVERSITY Mr. Guy. Thank you, Mr. Chairman. I am Elmer Guy, president of Navajo Technical University in Crownpoint, New Mexico, on the Navajo Nation. I ask that my full statement be included in the record of this hearing, Mr. Chairman. On behalf of the Nation's 37 Tribally and Federally chartered colleges and universities, that collectively are the American Indian Higher Education Consortium, or AIHEC, thank you for this opportunity to address your subcommittee. Mr. Chairman, I want to thank you for your past support of Tribal colleges. I would also like to thank the subcommittee for your longstanding support for the MSI partnership program operated by the Department of Energy's National Nuclear Security Administration. I am here today with a modest request for a small program with enormous potential. I respectfully request $5 million in the fiscal year 2018 Energy and Water Development Appropriations bill to continue and expand the new Tribal college initiative, which is part of the Department of Energy's NNSA/MSI partnership program. Tribal colleges first joined the MSI partnership consortia program about 2 years ago. Already, it has made a significant impact in our small institutions and the rural communities we serve. Tribal colleges are place-based institutions located in 16 States. We focus on Tribal Indian Nation-building through programs that sustain our Tribal cultures, languages, lands, and people. We are working to grow the country's Native workforce, and even more important, to create jobs in Indian Country to help address the deep-seated poverty that plagues our communities. Through AIHEC, Tribal colleges are implementing a long-term systemic plan to transition Native communities from local economies that perpetuate cycles of dependency and poverty into dynamic, innovation-driven economies, creating jobs and business opportunities. A key part of our plan is to work with new and emerging manufacturing technologies and methods to build jobs that Native Americans need and thereby to expand opportunity and leadership for all Americans. With seed funding from NNSA, we launched an advanced manufacturing program involving a pilot cohort of five Tribal colleges. This program will prepare a well-trained Native workforce in advanced manufacturing and create economic opportunities through the design and manufacture of products that are responsive to industry needs in these targeted technology areas. For example, the Center of Digital Technology at my institution, Navajo Technical University, has established a rapid growing advanced manufacturing program. Funded in part by the NNSA program and the National Science Foundation, NTU has developed a state-of-the-art facility, including 3D printers, computer numerical control machines, validation instrumentation, including metrology, that allows students to acquire knowledge and skills in design engineering, manufacturing processes, and performance analysis. Through this program, NTU is poised to become a leader, both in advanced manufacturing and the promotion of innovation and competitiveness through our own Center for Inspection Standards and Calibration. In fact, the Navajo Nation is contemplating investing in our college program, is helping recruit industry partners for research, development, and manufacturing projects involving faculty and students. Los Alamos National Laboratory is working with us to strengthen our metrology program simply because they lack metrologists. This is one example of how Tribal colleges are creating models for small, under-resourced, and rural institutions to successfully participate in an advanced technology-supported economic growth area, while providing students, both male and female, with hands-on training that leads to careers. Mr. Chairman, to ensure that the vital NNSA/TCU advanced manufacturing network initiative can continue, and more important, to help us accelerate the transformative power of relevant, job-producing higher education, we request your support for $5 million for the Tribal college initiative within the NNSA/MSI partnership program. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Thank you for being here today. We look forward to working with you on this. Maria Korsnick from the Nuclear Energy Institute? ---------- Wednesday, May 3, 2017. NUCLEAR ENERGY INSTITUTE WITNESS MARIA KORSNICK, CEO AND PRESIDENT, NUCLEAR ENERGY INSTITUTE Ms. Korsnick. All right, thank you very much. I am very pleased to be here today and share with you the nuclear energy industry's view on the fiscal year 2018 budget. My comments today are going to cover four main areas. First, the NRC's outdated and costly regulatory regime needs to be updated. Second, accident-tolerant fuel and advanced reactors require urgent review and action. Third, that the Federal R&D efforts that promote new technologies and innovation are essential. And fourth, the licensing of the proposed Yucca Mountain repository must proceed according to the law and in parallel with the pursuit of consolidated interim storage. I will summarize those four key points. First, with the NRC, while our reactor fleet relies on a focused, efficient, and technically expert NRC, we believe that the agency's regulatory regime needs to evolve. Thanks to your oversight on this subcommittee, you have created additional attention and focus on the NRC's processing of licensing actions, its readiness to review second license renewal applications, digital instrumentation and controls, the backfit rule, and advanced nuclear fuels. We appreciate that, however, the NRC's work here is not yet done. Congressionally directed, independent assessments emphasize the need for NRC to continue improving the efficiency and transparency of its regulatory processes and operations, consistent with its own good principles of good regulation. As NRC rebalances its priorities, consistent with leaner budgets, we would ask them to integrate preparation for accident-tolerant fuel and reactor applications as part of its funding program. The NRC's own Project Aim 2020 report recommends shifting resources away from disciplines that are less in demand towards these activities to maintain the efficiency of the current fleet regulation. Second, by 2030, the United States could experience electricity shortages if a significant number of reactors are retired, as currently projected. To avoid this outcome, the industry is preparing a path to enable the renewal of the operating licenses of nuclear plants a second time, and that would be for an additional 20 years. Two plants have already announced plans to do so. While DOE's work in this area has been critical, additional work is still necessary through the Light Water Reactor Sustainability Project. That R&D can reduce the operating cost of the existing fleet. This includes work in advanced instrumentation and controls and the accident-tolerant fuel program. Increasing funding for the accident-tolerant fuel program will actually allow the R&D to be accelerated ahead of its current schedule. Congress should also continue funding for the Energy Innovation Hub for Modeling and Simulation. That project sponsors CASL, which is the Consortium for Advanced Simulation of Light Water Reactors. That initiative is successfully developing tools that help us optimize our fuel performance, support approval of new designs, and also support plant life extension. Turning now to small modular reactors, the SMR licensing and technical support program we think has been a success. The new scale design, a certification application, has recently been docketed by the NRC, and TVA's early site permit application was docketed last year. The SMR/LTS program should be expanded to support first-of-a-kind engineering, and continued investment by the Federal government as a cost- sharing partner is necessary to ensure that these first SMRs are deployed in the mid-2020 timeframe. Developing this technology is going to help U.S. companies capture an international market as well for smaller and more versatile carbon-free energy sources. So here at home, SMRs will complement the large, passively safe reactors that you know we are building in Georgia and in South Carolina. And given the benefits for domestic job creation, expansion of income and export income and clean electricity, we think Federal support for the SMR technology is a sound investment in our Nation's future. Third, the ability of the nuclear industry to continue to innovate depends on the Federal Government supporting demonstration projects and encouraging advanced research. NEI supports the programs managed by DOE's Office of Nuclear Energy, and they seek to accelerate the commercial use of new nonlight water reactor technologies. The Gateway For Accelerated Innovation in Nuclear, or the GAIN program, has expanded access to the U.S. national labs. The small business voucher program implemented last year was, in fact, very successful, and a second round of awards was announced earlier this year. We think this program should be expanded. The advanced reactor industry has formed three technology working groups now. There is molten salt reactors, fast reactors, and high-temperature gas reactors, and this focuses the R&D needs, also interfaces with this GAIN program to inform the DOE Research and Development. Continued and increased funding for DOE advanced reactor program is essential to foster the ongoing and timely development and commercialization of advanced reactors, and also, in the continuation of funding for the industry cost-sharing awards that support the development of two advanced reactor concepts. Although the United States has a world-leading national lab program, it, in fact, lacks a fast neutron test reactor facility. Building an American facility would enable companies to accelerate the commercialization and eliminate our need to rely on a Russian research reactor, as we do today. We support the establishment of an independent U.S. facility in no less than 10 years. Lastly, with respect to used nuclear fuel management, NEI supports funding for DOE and NRC to complete the licensing of the Yucca Mountain repository in parallel with the development of consolidated storage. We encourage Congress to restructure the funding and spending mechanisms of the Nuclear Waste Fund to provide for dependable access to the Nuclear Waste Fund while maintaining congressional oversight. Such action is essential to ensuring that the Federal Government can meet its statutory and contractual commitments. Thank you, Chairman Simpson, Ranking Member Kaptur, and the members of the subcommittee. I am happy to take any questions you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Fleischmann. Thank you, Ms. Korsnick, good to see you. Melissa, great to see you again. For the benefit of everybody on this subcommittee I just want to thank you all for the outstanding work that NEI does. On a personal level, your support for the Nuclear Cleanup Caucus and all that we do in sites from Oakridge to a little place called Idaho, and across a great United States, thank you. Beautiful little place. Yeah, that is right. I have been once. If I may, I have two quick questions. Castle, you touched on Castle which is very important to us. Can you please, again, tell us how Castle has helped the current fleet in terms of nuclear power and how we can improve the economics of nuclear power using Castle? Ms. Korsnick. I can give you a couple of examples. Watts Bar 2 is a plant that recently started up, and I know they used the Castle simulation program as part of that plant startup, as an example. I mentioned a recent SMR, small modular reactor, program NuScale is a company that is involved with SMRs, and I know they are using the Castle program as they are providing input, as they are finalizing their design and getting regulatory approval. And so the Castle program is being used in that. And we are looking at using the Castle program, as well, in support of the life extension as well as accident-tolerant fuels, and they are two very key programs for the current fleet. Mr. Fleischmann. Thank you. And one further question. Does NEI support the Department of Energy reestablishing a domestic uranium enrichment capacity for national security purposes in the near term and why? Ms. Korsnick. Yes, I would say from an NEI perspective we do think that it is important that the United States has the ability to enrich uranium. Mr. Fleischmann. Thank you, Mr. Chairman, I yield back. Ms. Kaptur. Thank you very much and we appreciate your testimony this morning, Ms. Korsnick. I wanted to ask you a difficult question you did not completely reference in your testimony. You probably have been here this morning, you heard about the Southeast Power Marking Authority and some of the other energy umbrellas that exist across the United States. In the region of the country that I represent nuclear energy is undergoing particular market pressure right now because of, I do not know whether one would call it an anomaly in the marketplace, but because of the movement of natural gas into our energy production, and the severe impact that has had on the nuclear industry. For the plants I represent and in the general Great Lakes region we have no such umbrellas across our region. Do you have any recommendations or thoughts you could provide now or to the record how we can deal with these companies? It is my understanding 25 percent to a third are heavily impacted currently. That could allow them to continue to function, but they may not be able to meet that test in the individual States in which they exist because energy pricing is really global in nature and we face the threat of a loss of many of our nuclear power plants in the commercial sector. Do you have any comments on that or could you providing information to the record on a range of solutions that you might suggest as head of your institute? Ms. Korsnick. Certainly. I will provide a few comments here, but I will add more to the record, if that is okay. I would characterize the challenge that is facing the fleet today is, in fact, the low price of natural gas or the glut, if you will, of natural gas has put significant pressure on the operating fleet. I know that we have been working with the Federal Energy Regulatory Commission. And they have just, in fact, had a technical conference this week, and one of those items is to look at the value that nuclear brings to the marketplace, and the fact that all of that value is not being realized, in fact, in the market. So it is a significant challenge. You are right. We have closed six plants in the last few years, seven additional plants have announced, and there are more that are threatened. So I do think that this is a significant challenge. I would step back. I would say right now the solutions are playing out in individual States, so there was success in New York. There was success in Illinois, but there will be other individual State conversations. But I do think it is very important for us as a Nation to step back and look at what we have in nuclear power and appreciate the importance that nuclear power brings. There are 60 reactors being built around the world today, two-thirds of those are Chinese and Russian design. The United States needs to be in that conversation. We do not get in that conversation by letting our fleet at home atrophy. We need to take this very seriously. We should look at it as a national security issue, and that is something that we are working very much to create that conversation. I am happy to add more for the record. Ms. Kaptur. All right. Thank you very much. And, Mr. Chairman, this is such a significant issue in the Great Lakes because when our nuclear power plants were built we actually function in the commercial marketplace. We have nothing like the Tennessee Valley Authority or the Bureau of Reclamation or the Southeast Power Market Authority. It simply does not exist. And these companies are really enduring hardship. I really, personally, I think we need a bridge financing package. The industry has not really asked for that. Right now they are sort of hostage at the State level, but this is an issue for this subcommittee, and also for the authorizing committee, I think. And I just do not, I am sorry to say, I just do not think our States are up for the task of meeting a national challenge. So I just wanted to put that on the record and we would welcome any additional comments you wish to make. Mr. Simpson. Thank you. ---------- -- -------- Wednesday, May 3, 2017. E4THEFUTURE WITNESS STEPHEN COWELL, PRESIDENT, E4THEFUTURE Mr. Cowell. Hi. Thank you, Mr. Chairman. Thank you for the opportunity to testify today. And I will be testifying, we have submitted testimony on behalf of myself, EForTheFuture, but also Home Performance Coalition. My partner, Brian Castelli, will be also talking about it. So my goal is really to talk through about how energy efficiency, and specifically the work that is being done by DEO in the very critical role of working collaboratively with States is absolutely critical. Just a little bit about EForTheFuture. We used to be called Conservation Services Group and we ran the residential energy efficiency in 23 States, including Tennessee, Ohio, New York, New Jersey, California, Oregon, Washington, Massachusetts, and a few other States. But we were able to assist, our nonprofit was able to assist over 3.5 million American U.S. households reduce their energy consumption over the last 20 years. That was our work. We recently sold our business work to a Texas company, Clear Result, and they are going to continue doing that. We are going to continue focusing on research, education, and innovation to really drive our energy economy for the future which is what we have to do. And so one of the things, really the specific points--and I would like to thank the House, specifically. Your continuing resolution continues the work that I am going to talk about, and so thank you very much, which I think you are going to vote on today, later today. I think it was a leadership effort, so thank you very much. Specifically, the Building Technology's Office at DOE does tremendous work around helping all of us in the energy efficient world, which energy efficiency is the least expensive. It is the most reliable and it is the most beneficial. Brian will be talking about the jobs impact analysis that we did in terms of how many jobs and its impact. But the Building Technology Office, part of EERE, is really critical to helping provide the background and the underpinnings for all the efforts in each State. The State energy programs provides the support to the State energy offices because this country, we have delegated managing and running our energy economy to the States. It is a critical partnership between State and Federal. If we do not have a strong energy economy we will not keep going as a country, so we really need to put all the pieces together. So we really strongly support that and the weatherization systems program, helping low-income people try to avoid energy poverty, and that is really critical as well. There has been great work over the years of the weatherization assistance. As a matter of fact, CSE EForTheFuture started as a result of learning from the weatherization program in 1979. So a long history of tremendous innovation and others will be talking about the weatherization assistance program and its critical nature. We did put together a letter, which we have submitted, with almost 2,500 names, including names and businesses from every State, all of your States in terms of Ohio, Tennessee. Tennessee we had 135 different businesses submit a letter asking for support, continued support for those programs that I mentioned because they really are critical for a lot of reasons. So that letter was put together really with reaching out to all the people that we work with and talking about the value and the benefit that they bring. And one of those benefits, we did another report on the issue of the health impacts, predominantly low-income. And what we identified, we worked with DOE as well as several others, that, in fact, residential energy efficiency reduces healthcare costs, particularly Medicare, right? And it reduces asthma. It reduces a variety of health impacts, so it really produces benefits that we really had not even calculated before, and that ought to be, you know, recognized in the discussion, in the deliberation. Really, in closing, it is really critical to recognize that volatility of our energy prices is an absolute critical concern for our economy. In several cases, one of the things I did, I helped draft and put together the Stimulus Bill in 2008. I was asked to assist with that, and one of the research projects that we did was looking at the relationship between energy prices and home mortgage failure. They were directly related to each other. Between 2003 and 2008, the average American family lost 15 percent of their disposable income. And any homeowner who was on the edge was pushed over the edge. I presented this information to all the Senate staff, Energy staff and there was a gasp, like, oh, we did not realize that. The banks may have put the gasoline, but the match was energy costs. Right? So volatile energy costs have a tremendous negative impact on our economy, and energy efficiency is the way that we can stabilize those. So thank you very much. Appreciate the work that everyone is doing. We need to continue things like weatherization assistance, the State energy program collaboration really is a collaboration between State and Federal. You guys cannot walk away. You have got to work with each of the States in helping craft the energy policy. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Mr. Cowell. So thank you very much. Mr. Simpson. Thank you for being here. Thank you for mentioning all of those important States, but you left out the State. So other than that I am, you know, I am not going to say. Mr. Cowell. I know. I know. We did not work in Oklahoma. I am very sorry. Mr. Simpson. It is like the Ohio University, right? Mr. Cowell. All the rest of you. Mr. Simpson. Any questions? Ms. Kaptur. I welcome your testimony so much. You have found very receptive ears on this panel, but especially with this member. And I am hoping that an organization like your own will consider as part of the infrastructure bill to work with other colleagues and institutes and organizations on the outside to have a housing component to the infrastructure bill that may or may not be coming forward in this administration, this new administration. I represent hundreds, if not thousands, of constituents who cannot afford to put a new roof on their homes. Many of them are seniors. What is happening in a State like Ohio, because of the difficulty with our nuclear power plants in the northern part of Ohio, which gets very cold, by the way, energy bills, if the State gets its way are going to go up more for people who are elderly, too. They cannot afford windows. They cannot afford insulation. They cannot afford weatherization. They get sicker, just what you say. And I just think we need a massive roofing program across this country, roofing, windows, insulation as a part of an infrastructure bill. And it ought to affect millions of people, not thousands because it is desperately needed. It could be a job training program as well. So I thank you for your testimony. I am so glad you came today and thank you for the programs that you support at the Department of Energy. Mr. Cowell. Well, thank you. Ms. Kaptur. Thank you, Mr. Chairman. Mr. Cowell. From a product's point of view, we have looked at, and I actually worked with Home Depot together and they did an analysis of where the products that go into energy efficiency improvement in homes and over 75 percent must be made in America because they cannot be made anywhere else, insulation is too light. Heating and cooling equipment is too heavy to transport. Glass, windows are too fragile. Right? I mean, these are products that are made in America and every job has to be an American. You cannot take a house and move it overseas and fix it and bring it back. That is a little difficult to do. Mr. Simpson. Thank you. Mr. Cowell. Thank you. Mr. Simpson. Thank you for being here today. Brian? ---------- -- -------- Wednesday, May 3, 2017. HOME PERFORMANCE COALITION WITNESS BRIAN T. CASTELLI, PRESIDENT AND CEO, HOME PERFORMANCE COALITION Mr. Castelli. Thank you, Chairman Simpson, and thank you for the invitation here, Ranking Member Kaptur. My name is Brian Castelli. I am with the Home Performance Coalition and we are a nonprofit organization that advances the residential energy efficiency market through research, education, and policy analysis. We also hold the premier national and regional conferences on home performance, both the policy arena, as well as the best practices for installing energy efficiency majors in the home. We work with all stakeholders in the industry, from the installers themselves to the manufacturers of the products. I am here to talk today about support for three of the Department of Energy's programs. One in the residential energy efficiency program and the other two in the weatherization and intergovernmental affairs office. Specifically, we would like to see the subcommittee support $200.5 million for building technology offices which develops the critical technologies, tools, and solutions to increase energy efficiency in homes and buildings. We would also like to see $23 million of that number focused on the residential building integration. Integrating all the different parts of the efficiency office that deals with homes. This has been a missing piece in the portfolio of programs that DOE has had, and we think this is now the time to get that program up and running. We would also like to support a $50 appropriation for the State energy program. It supports the State and local efforts to develop and implement cost effective energy efficiency projects and leverage private sector innovations. Now, as a former director of the State energy office for Pennsylvania, and also as the Washington D.C. liaison for the California Energy Commission I would like to tell you, these are some of the most important infrastructure we have in the States are the State energy offices. They are where the rubber meets the road. They work with the companies, the corporations, and the individuals in those States to make sure that energy efficiency plays a major role in the energy programs of that State. It is where innovation happens. That is where we really have a lot of the innovation, both on the policy side as well as the technology side. Many years ago when I was with the Pennsylvania Energy Office we teamed with both the Texas Energy Office as well as State Energy Conservation Office, as well as companies in Ohio, Columbia Gas of Ohio to do a community project in low-income weatherization where we did the first, the seminal work, in plug load monitoring both for electricity and natural gas. And that now has become an industry in and of itself, so I am very strong on supporting. However, I notice that a good friend of mine, Doug Taylor is in here today. He is here now and he is going to speak later and he will tell you a lot about the State energy offices. The third program that I want to talk about is the weatherization assistance program. We would like to have you support a $225 million appropriation for that program. Steve talked a lot about the weatherization program. It helps low- income, rural families, seniors, and individuals with disabilities to make lasting energy efficiency improvements in their homes. Oakridge National Lab has provided a lot of good data on this program, and it has shown that every dollar that is invested by the Federal government $2 to $4 returns in benefits, both to society, as well as the home owners. This is a critical program. It helps the most vulnerable, and I know that everyone in this room does not want to make the vulnerable more vulnerable or the poor poor. This is a program that helps these people. By lowering their energy costs they are able to use that money, which may have gone to a utility, but they can use it for food. They can use it for health. They can use it for a lot of things. So we are very strong on this program. They return a significant ROI and they deserve the support of the United States on this. Jobs, Steve said I would mention jobs, this is a report that the E4 Foundation funded and supported. Done by an outside, objective consultant group that does these surveys. And it is one of the most effective ways to save consumers and businesses money on their utility bills. There are two recent reports out. One came from E4, followed two weeks late by a report from DEO. Very similar results. The E4 report shows that over 1.9 million Americans are employed in the energy efficiency industry. It is kind of a stealth program, energy efficiency. Nobody knows about it. Do not understand how many jobs that there are there. The most recent report from DOE which was done with data from a year later showed 2.2 million full and part time jobs in energy efficiency. They are well-paying, diverse, and they are found in every State in the country. Again, these jobs are in the residential sector, 40 percent of them, and they involved the insulation of energy efficiency products. The contractors are the boots on the ground. They are the people who install these products in the homes, who do the installation, the windows, the roofs. And let me tell you, those jobs cannot be exported. They are indigenous jobs, not only to your State, to your country, to your local community. And the most interesting thing about this is there are over 165,000 U.S. companies that are small businesses, fewer than ten employees in this part of the energy efficiency sector. Just for some information here, you might be interested to know in the State of Washington there are over 38,000 energy efficiency jobs. In Ohio over 78,000 energy efficiency jobs. You probably, even though you know your State better than anybody, you probably do not realize how many jobs there are. In Idaho, nearly 3,000 jobs and these are important jobs. They are critical to the efficiency industry. They are critical to your State's economy, and we believe in them. And this is a good program. So we believe that energy efficiency is vital to the economic growth. The industry supports millions of these well- paying jobs, and we urge the subcommittee to preserve at least level funding for the DOE programs I mentioned earlier, and outlined in the written testimony we provided earlier. I want to thank you, again, for the opportunity to provide this testimony. Thank you. Mr. Simpson. Thank you. And I will just announce for the committee's sake that we are so far 25 minutes behind schedule, and not quite half way through yet, so everybody speak quickly. Mr. Castelli. I am happy to answer quick questions. Mr. Simpson. Ken. ---------- -- -------- Wednesday, May 3, 2017. SOUTH CENTRAL COMMUNITY ACTION PARTNERSHIP WITNESS KEN J. ROBINETTE, EXECUTIVE DIRECTOR, SOUTH CENTRAL COMMUNITY ACTION PARTNERSHIP Mr. Robinette. Good morning, Chairman Simpson, ranking member Kaptur and committee members. I am the CEO of the South Central Community Action Partnership in Twin Falls, Idaho. I am pleased to submit testimony today to support the Department of Energy's Weatherization Assistance Program referred to as WAP. I would also like to thank the two presenters that just came before us that talked about WAP to set me up for this presentation. So thank you. With the Department of Energy's Weatherization Assistance Program I would respectfully urge this committee to fund the Weatherization Assistance Program in fiscal year 2018 at a level of 230. That is a little bit above what they had recommended but we are deeply concerned about the administration's proposal to eliminate WAP and I believe that this funding level is essential in continuing and improving the outstanding results of the program. The WAP celebrated its 40th anniversary in 2016. Today I want to highlight the impact that the WAP has nationwide as well as demonstrate what the program makes a difference in my State of Idaho. The WAP is a proven, cost effective and successful model of a Federal, State and local partnership. WAP services are delivered by more than 900 organizations, many of which are community action agencies like mine. WAP operates in every corner of the Nation making a difference in both urban and rural communities in all 50 States and the District of Columbia, U.S. Territories, and Native American Tribes. Since its inception in 1976 over 7.4 million homes have been weatherized by WAP. That is 7.4 million families with extra money in their pocket and living in a safer, healthier more comfortable home. It is widely known that the families with low income pays a larger portion of their income towards home energy costs and their higher income counterparts about 16 percent of income versus just three percent according to Oakridge National Laboratory. Weatherization helps alleviate this high energy burden through cost effective, energy efficiency improvements such as insulation, air sealing, HVAC systems, lighting and appliances. According to DOE, in cold weather States like Idaho WAP can reduce heating costs by as much as 30 percent and families in weatherized homes save at least $283 each year on their energy costs. This income can be used to pay for goods like food, medicine and education. According to a commonest at the Home Energy Affordable Gap Project, Idaho households with incomes below 50 percent of the Federal poverty level pay a staggering 21 percent of their annual income simply for their home energy bills. Idaho has six WAP providers that serve all 44 counties and weatherize approximately 975 homes annually for families and individuals that are economically disadvantaged. Of those homes weatherized each year more than 2,400 individuals many of which are elderly, disabled and young children now live in a more energy efficient and safer home. Many of our families submit letters of thanks for assistance they received. I would like to share one of those letters from a family who owns a home in small farming community of Hazelton, Idaho. This family where dad and mom are both working with one small child who is disabled writes we are so grateful and could not thank you all enough of everything. I was so amazed how professional all the guys were. Our home used one third of the electricity and a lot less coal. The proof is in out reduction of our power bill. Also my son has only had one minor cold. Last year he had several because the cold drafts and fluctuation of temperature. In addition to providing substantial emergency savings for hard working American families, the WAP also makes homes healthier and safer. For every dollar invested in weatherization, $2.78 cents were generated in health and safety benefits. Weatherization measures generally improve ventilation, mitigate mold, and improve indoor air quality. As a result, residents of weatherized homes experience fewer asthma and allergy symptoms as well as fewer hospitalizations. Children in weatherized homes missed fewer days of school and their parents missed fewer days of work. In the Oakridge National Laboratory study of WAP residents reported paying an average of $514 less out-of-pocket medical expenses after weatherization. Not only does WAP make a necessary, needed improvement to our national aging housing stock, but it also helps American workers and American businesses. The WAP directly supports more than 8,500 jobs and indirectly supports thousands more in related business. The WAP has provided training and workforce development to thousands of low-income and middle-income workers allowing them to secure stable employment across the entire State or across the entire supply chain from WAP crews, material suppliers, tech companies, and more. Idaho is also a great example of another key success of WAP with a strong record of leveraging and additional funds to supplement the Federal dollars. The main method of leveraging is through partnerships with utility companies. Many of which depend upon the WAP delivery network to carry out low-income residential efficiency incentives. In 2015, increasing--excuse me, let me back that up. At least 21 States were able to leverage additional funds from utilities in 2015, increasing the impact of the WAP in those States. This leveraging activity is only possible with the critical base money from DOE as well as DOE's reputation and high quality standards. In Idaho, we have had a longstanding partnership with three of our largest utility companies. Over the past 5 years, they have contributed more than $11.8 million that were invested in approximately 2,200 households throughout the State. In closing, I would like to extend my gratitude to all of you for your hard work and continued support of WAP over the years. I again respectfully urge the subcommittee to find or fund the WAP at $230 million for fiscal year 2018, the funding level necessary we believe to sustain a national program to serve low-income families in all local communities. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Ken. Ray. ---------- - Wednesday, May 3, 2017. NATIONAL ASSOCIATION FOR STATE COMMUNITY SERVICES PROGRAMS WITNESS RAY JUDY, ENERGY SERVICES DIRECTOR, NATIONAL ASSOCIATION FOR STATE COMMUNITY SERVICES PROGRAMS Mr. Judy. All right, thank you. My name is Ray Judy and I am the energy services director for the National Association for State Community Services Programs and I appreciate the opportunity to come and speak to you today mainly regarding the Weatherization Assistance Program, which is near and dear to my heart. So I am pleased to submit testimony in support of the Weatherization Assistance Program and State Energy Program. As some of the numbers that you have already heard we are seeking an fiscal year 2018 appropriations level of $230 million for the Weatherization Assistance Program and $70 million for the State Energy Program. NASCAP is a member organization representing the weatherization grantees and the directors in all 50 States, D.C., and five U.S. territories on all the issues related to WAP. The State office is represented by organization. We would like to thank this community for its support of the WAP and SEP through the years. Additionally, we would like to share our appreciation for the increase in WAP funding contained within the omnibus for the fiscal year 2017 funding. I have been working in the weatherization program for over 29 years with the first 28 years of that being spent in Indiana's weatherization program and have witnessed throughout that time firsthand the impact that the WAP has on the most vulnerable households in this country. Weatherization provides a foundation for residential clean energy investments that sustain jobs and save families money through improved energy efficiency. In its 40-year history the WAP has weatherized over 7.4 million homes, helping hard- working American families, particularly those that are elderly, disabled, and families with children. The need for weatherization services is significant. DOE estimates that 20 to 30 million families are eligible for WAP each year. This represents an incredible opportunity for energy savings that cannot be obtained without the WAP. Weatherization managers like insulation, air ceiling, high- efficiency HVAC systems are investments that pay off for the life of the home reducing energy waste and saving families money month after month and year after year. With lower energy bills these families can increase their usable income and buy essentials like food, clothing, medicine, and health care. In addition to delivering savings to families, the WAP plays a significant role in supporting jobs in workforce development and we will repeat the number again that WAP supports at least 8,500 jobs in weatherization and thousands more across the supply chain and material suppliers, vendors, and manufacturers. It is also important to highlight that the work performed under WAP meets extremely high quality standards set forth by DOE. In recent years, DOE has developed and implemented standard work specifications that ensure all homes receive the highest quality weatherization services. As of 2016, there are over 1,600 building performance institute-certified quality control inspectors. This workforce of QCIs ensures that 100 percent of the units weatherized with DOE funds are inspected for quality. And in addition that number, the WAP grantees inspect 5 percent of those units in sharing another layer of review during their time in monitoring. Another critical benefit of the WAP is its positive impact on the health and safety of families. You have heard this again, but it really bears the repeating these numbers and this information. It makes sense that in a home that is cold and drafty or full of mold and excess moisture there is an increased risk of recurring illnesses. What we have learned over the years is that the nonenergy benefits of weatherization results in a healthier living environment. This was confirmed by the Oakridge National Laboratory evaluation which found that residents of weatherized homes experience fewer asthma, allergy, and cold symptoms. Weatherization mitigates factors that can trigger an asthma attack resulting in fewer emergency room visits and hospitalizations. WAP measures can also prevent other life- threatening events such as carbon monoxide poisoning and fires from unsafe heating sources. After weatherization families have homes that are safer and more livable, resulting in fewer missed days of work and school. These outcomes pay off. Again, every weatherization dollar spent returns $2.78 in health and safety benefits. These economic benefits are even more significant when viewed in light of our Nation's staggering healthcare costs. According to the Green and Healthy Homes Initiative, $82.4 billion in healthcare costs are lost each year due to inefficient and unhealthy housing. That is 3 percent of the total U.S. healthcare costs. The CDC estimates that asthma alone costs the United States $56 billion per year. Despite the wide range of benefits and proven cost effectiveness of the Weatherization Assistance Program and the State Energy Program, the administration's fiscal year 2018 budget blueprint zeroed out both programs, citing a need, ``to reduce Federal intervention in State-level energy policy and implementation''. However, WAP and SEP are models of success; successful Federal, State, and local partnership, not Federal intervention. Elimination of these programs will result in loss of jobs as well as decreased investment in local businesses, which will harm the financial stability, health, and safety of families across the Nation. NASCAP respectfully urges the subcommittee to fund the WAP and not less than $230 million for fiscal year 2018 and the funding level necessary to sustain the national program. NASCAP also supports the appropriation of 70 million in fiscal year 2018 for the State Energy Program. And NASCAP also looks forward to working with committee members in the future to ensure that these programs continue to deliver cost-effective results that support our economy and make a difference in the lives of the most vulnerable in our communities. And to end, we just really appreciate the opportunity to be here today and to speak to the benefits of this program. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Kaptur. Mr. Chairman, I want to take just 5 seconds to ask the prior witness, Mr. Robinette, and yourself if you could submit from that Oakridge study to each of the members up here by their State from the inception of the program how many units have been weatherized and then the State-by-State achievements over that period of time and what remains to be done. I think that that would be very--to take the one example you provided for Idaho and to extend that to other States, that might be very--we have a lot of new members on this subcommittee. Thank you. Mr. Robinette. Absolutely, be glad to. Mr. Simpson. Thank you, Ray. Daniel. ---------- Wednesday, May 3, 2017. NORTHERN MANHATTAN IMPROVEMENT CORPORATION WITNESS DANIEL RIEBER, WEATHERIZATION DIRECTOR, NORTHERN MANHATTAN IMPROVEMENT CORPORATION Mr. Rieber. Good afternoon, Mr. Chairman. My name is Daniel Reiber and I am the weatherization director at the Northern Manhattan Improvement Corporation in New York City, or NMIC as we say. I am here today before this committee to submit testimony in support of the Department of Energy's Weatherization Assistance Program, or WAP. I respectfully request that the Weatherization Assistance Program (WAP) be kept whole and funded nationally at $230 million for fiscal year 2018. At NMIC we integrate numerous crises innovation services under one roof. With their crises resolved our clients move seamlessly to capacity building services through our holistic programs designed to support individuals and families as they develop the tools to transition from crises to self- sufficiency. Our weatherization program is a critical piece of our mission to serve as a catalyst for positive change in the lives of people in our community on their paths to a secure and prosperous future. The WAP is the largest energy efficiency retrofit program in the Nation. The local community action agencies and community-based organizations that implement the program are skilled, highly trained, and held to higher standards that are often required in the commercial marketplace for equivalent work. For 40 years the WAP has led the charge for energy efficiency and used building science to properly evaluate, diagnose, and retrofit houses and buildings so they may become more energy efficient and safe. The WAP workforce sustains almost 9,000 jobs nationwide. Additionally, thousands of jobs are sustained through related industries and the hiring of small business contractors. NMIC utilizes subcontractors throughout the program year to provide windows, boilers, insulation, and ventilation upgrades. This workforce can consist of up to 100 works from 8 different small business contractors. Over the past several years we have seen the availability of affordable apartments become very scarce in Manhattan. Accordion to the National Low-Income Housing Coalition in the State of New York there are just 35 affordable units available for every 100 low-income renters. As low-income tenants struggle to live in our great city, the weatherization program is more important today in helping to preserve affordable housing for low-income families, especially children, seniors, and individuals with disabilities. Most of the buildings we have served in the last grant period were extremely inefficient and in desperate need of energy conservation measures, causing residents to pay significantly more than necessary towards energy costs. Additionally, the need for these services is staggering. Our organization alone has 800 units in over 20 buildings on our waiting list. NMIC works with building owners who are committed to preserving affordable housing while still running a profitable business. Many properties were neglected over time and are in great need of assistance. Such things as boilers, pipe and roof installation, roof repairs, and windows. WAP helps keep low- income people in affordable, safe, energy-efficient, and healthy homes. Furthermore, weatherization dollars are key to helping low- income, tenant-owned buildings survive. These HDFC, or Housing Development Fund Corporations as they are known, typically have poor cash flow and high energy burden. By assisting these buildings, the WAP helps preserve the essence of affordable housing in low-income neighborhoods and, at the same time, improves the quality of life in our various communities. The DOE weatherization program is critical because it provides the critical base with which to leverage and combine other funding. We utilize a mix of program, owner, utility, and State energy office, NYSERDA in this case, dollars to weatherize buildings, make them sustainable, safe places to live. One thing is certain, should the Federal funds for WAP be significantly reduced or zeroed out, the impact would be devastating to our community. Building owners will seek out repairs and pass that cost on to tenants. This upward pressure on rent will force people out of their homes, thus creating a vicious cycle of displacement and uprooting of families and the elderly. The stress of losing your home through no fault of your own is the kind no one should have to endure. Furthermore, the nonprofits in support of housing agencies that rely on WAP for their clients will most likely defer maintenance until they are able to make repairs, endangering the health and safety of their residents. I will just highlight in my testimony our two case studies which show energy-saving reductions in two buildings of 42 percent and 47 percent, respectively. In both cases the low- income residents were direct beneficiaries of an affordable, safer, more comfortable home with no fear of a rent increase. Founded in 1979, the staff of two with the goal of assisting immigrants in northern Manhattan who were at risk of being evicted, Northern Manhattan Improvement Corporation has grown to be one of New York City's most trusted, innovative, and effective poverty fighting organizations. Our programs include legal services, social services, education and career services, weatherization, and community organizing. The loss of the weatherization program would impact our ability to achieve our mission as we would no longer be able to provide the comprehensive services that makes a difference in the lives of the most vulnerable in our community. In closing, I urge the subcommittee to fund the WAP at no less than 230 million for fiscal year 2018, the funding level necessary to sustain a national program. This is a program that has proved its worth and effectiveness over 40 years. The WAP plays a critical role in providing and preserving affordable housing in our community and helps hard-working families across the entire country. I thank you and also want to thank you for adding 13 million to the FYI 17 Omnibus Bill. We appreciate that very much. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. David. ---------- Wednesday, May 3, 2017 ASSOCIATION FOR ENERGY AFFORDABILITY, INC. WITNESS DAVID HEPINSTALL, EXECUTIVE DIRECTOR, ASSOCIATION FOR ENERGY AFFORDABILITY, INC. Mr. Hepinstall. Good morning. As the executive director of the Association for Energy Affordability, AEA, I represent and serve a network of not-for-profit community-based organizations that provide weatherization services to low-income households throughout downstate New York. AEA is a national weatherization training center and a WAP-funded technical services provider as well as a direct services subgrantee in New York City. In the last 10 years AEA itself has weatherized 9,000 housing units and completed investment grade energy audits of 2,400 buildings with over 112,000 units in New York, while also every year having trained hundreds of program staff, contractors, and building operators in New York and nationally. I am here today to urge you to fund the Department of Energy's Weatherization Assistance Program at least 230 million and DOE's State Energy Program for 50 million for fiscal year 2018. Funding at this level is needed to retain the expertise in infrastructure that enables weatherization to deliver its essential services to low-income households throughout the United States and supports State energy programs that work collaboratively with weatherization. Weatherization employs energy auditors, retrofit installers, quality control inspectors, and project managers with deep expertise in whole building energy efficiency. In New York State alone 736 persons are fully or partly employed directly by weatherization and yet even more work is performed by local heating, plumbing, electrical, and ceiling contractors hired and overseen by weatherization. These local agency and contractor jobs affect the local economy. They cannot be outsourced. WAP also supports accredited training programs conducted by training centers like AEA to prepare workers for BPI certifications and help program staff and contractors deliver deep energy savings. Weatherization in New York also leverages substantial private resources from building owners and utilities to complete its energy efficiency upgrades helping to preserve affordable housing and make a lasting impact on low- income communities. Cost-effective, whole house weatherization saves money and energy and improves occupant health, safety, and comfort for years to come. Weatherization enables low-income families to meet more of their basic needs despite limited incomes simply by reducing energy waste in their homes. Yet the very program that makes all of this possible, that has spawned valuable technology improvements along the way, that is celebrating 40 years of bipartisan support today, finds itself on the chopping block. Passing the current CR is a start, but having at least 230 million in the 2018 budget is the key. If the weatherization program were to be defunded or there were major cuts in fiscal year 2018 funding, both program staff and contractors would experience job loss, many moving on to other types of work. This would be a huge loss to their communities and not easily reversed if the infrastructure of WAP were dismantled. In New York City, only 16 percent of low-income households own their own homes compared to 42 percent nationally. Most are renters living in older, multifamily buildings. Preserving the affordability of their housing requires more than a few low- cost measures in their units. Energy-efficient heating, hot water, and ventilation systems are needed to control building and operating costs. Seventy-one percent of low-income households in New York City are severely rent burdened, meaning they pay over 50 percent of their income for rent and utilities. This places them at a high risk of becoming homeless. WAP policies and best practices in New York contribute to economic and social stability of low-income families and neighborhoods by reducing the energy and maintenance costs that may otherwise lead to rent increases and displace many families from their homes. The positive effects of WAP in New York City multifamily buildings begin even before retrofits begin because owners must ensure code violations and other hazardous conditions identified in the building audit before weatherization work can even begin. Weatherization helps by simulating owners to invest in low-income communities that have suffered from disinvestment. Weatherization measures contribute to the health and safety of building residents, improving indoor quality and removing conditions that trigger asthma symptoms. DOE rules permit energy efficiency upgrades to central systems in multifamily buildings when the required percentage of households in the building is income eligible. This allows local weatherization subgrades in New York City to take a whole building approach to energy efficiency that helps to maintain housing affordability. Multifamily weatherization in New York protects low-income residents in housing affordability by requiring building owner investment of at least 25 percent of the cost of the building- wide energy upgrades, prohibiting owners from increasing rents based on capital improvements, co-funded by weatherization, and preventing displacement of low-income tenants by requiring any apartment vacated by a low-income resident to be rented to another low-income household for at least 5 years after weatherization upgrades have been completed. Those are things that have been developed in New York specifically coming from below, from subgrantees, and it is possible because of DOE regulations as well. So I really want to thank you for the opportunity to testify today and say I have been in this for 27 years and gone to a lot of buildings in New York City, and I remain to this day deeply moved by the positive impacts on so many households. We have pictures of before and after. We have movies, frankly, of that as well, and the impact on households and buildings and whole neighborhoods would be far-reaching, adverse, unintended consequences if this essential program were to end or be crippled by deep funding cuts. Please do not let this happen. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, David, for being here today. We appreciate it very much. Dr. Maria Spiropulu ---------- Wednesday, May 3, 2017 CALIFORNIA INSTITUTE OF TECHNOLOGY WITNESS DR. MARIA SPIROPULU, PROFESSOR OF PHYSICS, CALIFORNIA INSTITUTE OF TECHNOLOGY Ms. Spiropulu. It is Greek. Chairman Simpson, Ranking Member Kaptur, and distinguished members of the subcommittee, I want to thank you for the opportunity to testify today. I am here to discuss the importance of the United States in leadership in high-energy physics funded by the Department of Energy of the Office of Science, and why sustained government investment is needed to continue making world-changing discoveries. The major reasons why we need to sustain our excellence in particle physics are, for one, the basic research to understand and explain the universe. Secondly, our international leadership, our workforce development, and our technology breakthroughs. These accomplishments have only been possible through the support of your committee. In fact, you are the sole sponsor of this curiosity-driven research. So, I want to thank you for providing just recently $825 million for HEP for fiscal year 2017, and I ask you to consider providing the $868 million for fiscal year 2018, to advance our ongoing critical research and infrastructure projects. I have been a particle physicist for 24 years, and I am now a professor at Cal-Tech. Back then, we were building for discovery, and discovery we did, and Building For Discovery is the title and the name of the report that laid out a 10-year strategic vision for the U.S. particle physics by what is called the Particle Physics Project Prioritization Panel, P5 for short, which you have heard from before. It took the high-energy physics community a good 2 years to come up with this P5 plan, and sacrifices were made. We are now in the midway of its execution, and I am very glad to report that all projects are on time and budget. The highest priority in the P5 report is continuing our collaboration with CERN, the leading European laboratory, and meeting our commitments to the Large Hadron Collider, and the associated more than 2,000 American researchers, physicists, technicians, students. This will happen by funding the upgrades, the upgrade detectors. Now, mind you, with the LHC we found a unique particle that is necessary to complete our particle physics model of the universe, the blueprint of the universe. The highest medium-term P5 priority is the Long-Baseline Neutrino Facility, or LBNF. Fermilab will host LBNF and lead the world's accelerator-based Neutrino Research Program, studying the least understood, the most puzzling, and the highest abundant matter particles in the universe than neutrinos. LBNF will be the largest U.S.-based international science facility and the largest research program Neutrino has ever undertaken worldwide. As part of the detector, which is called the Deep Underground Neutrino Experiment, DUNE, Fermilab will shoot neutrinos 800 miles from Illinois all the way to South Dakota at the Sanford Underground Research Facility where we are building four massive detectors that are a mile underground. LBNF and DUNE will be for neutrinos what the LHC is for the Higgs, namely the mothership of deep exploration and discovery. And, very importantly, this international project continues to gain financial contributions from many other nations. In fact, following a cooperative agreement signed 2 years ago here, CERN, our closest collaborator, for the first time decided to invest outside Europe and invest on LBNF in South Dakota--Fermilab in South Dakota. And as of yesterday, additional protocols and agreements were signed at CERN, and CERN engineers and technicians started working at Fermilab starting already yesterday. Now, my testimony comes at a very crucial time for the U.S. Particle Physics Program. LBNF and DUNE received approval to start construction, and with the Omnibus Bill we can now provide sufficient funding for construction. Cessation in funding will lead to increased costs and delays and curtailing of the current momentum. Sustained funding will signal, in fact, to our partners across the wall, that the United States is absolutely determined and prepared to lead in science and make the case for the future, that science leadership, discovery, and innovation are essential aspects of our Nation's technological and economical growth. And I will take my last minute to talk a little bit about technology and workforce development after mentioning that the U.S., the United States, in this area, in the frontier of the cosmic--what we call in this area--we are already leaders, and we are doing dark matter and dark energy exploration and we will continue with sustained funding doing so. Dark matter is important, because it is the gravitational scaffolding of the universe. Without dark matter, galaxies and stars would fly away. We must understand what it is. Going to the technology, fundamental research is crucially dependent on advanced technology. We are adapting right now what technology has developed for quantum computers essential for these dark matter searches, pushing farther the advancement of these technologies, important applications of particle physics-spun areas of manufacturing, computation, medicine, and national security. Particle physics detectors improve homeland security using advanced technology and providing new techniques for monitoring the core of nuclear reactors. And when the motivation to generate new technology lies within deeper scientific questions, it is then that we make unprecedented leaps in technology and in the domain sciences. Finally, particle physics--you probably know it from the many times we come in front of you--we are the source of the biggest, absolute biggest data, and absolute biggest and more complex data architectures. This, as a consequence, that our particle physics students and the young researchers today are expertly versed in all these artificial intelligence methods and tools for science, for basic science. I would like to highlight one example of a recent graduate of mine, Alex Mott. He received his Ph.D. in 2015 from Cal- Tech, and he was handpicked by the Tesla model Autopilot team, and he developed from Version 0 to Version 9 now the Autopilot for Tesla Motors. This is happening with our students. This is just one example. This is happening with our students all over. So, in closing, I want to just remind everybody that particle physics is the physics of understanding and explaining the universe end to end and in its core, and it is curiosity- driven and basic science, but we are preparing technology advancements and technology breakthroughs in workforce development that it is unprecedented. And I want to thank you for the opportunity to testify and for your continued support to this science. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Doctor. There are a lot of questions that I would like to ask you, but I am just not smart enough. It is pretty deep stuff. But thank you for being here-- -- Ms. Spiropulu. Thank you. Mr. Simpson [continuing]. And testifying on the importance of the program. Ms. Spiropulu. Thank you. Mr. Simpson. Morry Markowitz. ---------- Wednesday, May 3, 2017. FUEL CELL AND HYDROGEN ENERGY ASSOCIATION WITNESS MORRY MARKOWITZ, PRESIDENT, FUEL CELL AND HYDROGEN ENERGY ASSOCIATION Mr. Markowitz. I want to thank the Chair and the Ranking Member for giving me this opportunity to discuss our industry's priorities for fiscal year 2018 funding for the Department of Energy. My name is Morry Markowitz. I am president of the Fuel Cell and Hydrogen Energy Association. I previously submitted written testimony to the committee, but I would like to have this opportunity to have a conversation with you. The member companies that make up the Fuel Cell and Hydrogen Energy Association range in size from some of the best-known household brands in the world to small businesses and startups. We also count national laboratories and other nonprofits within our family. Looking around at the subcommittee, I could see we are well represented here. The industry currently employs approximately 10,000 direct workers in the United States through manufacturing, maintenance, engineering, and supply chain support, and thousands more in indirect jobs. We often refer to the fuel cell technology as the all-the- above technology, meaning it applies to stationary and distributed power generation, backup power for telecommunications, material handling, and transportation, including passenger vehicles, buses, and soon trains and heavy vehicles. We utilize all the above fuels because we can drive hydrogen from 100 percent domestic resources, including natural gas, bio and landfill gas, to renewables such as solar and wind. Our industry, with the help of the Department of Energy, has made incredible strides in developing this transformational clean energy technology. Passenger cars are now being sold and leased in California. Stationary power is being used by some of the leading utilities and companies from around the world. Fuel cell forklifts are taking the place of old battery types in the largest distribution centers in North America. However, even with all this progress, there is still a great deal left to accomplish in making this technology more competitive in the marketplace. And that is why I am here to speak to you today. For fiscal year 2018, our organization is asking that the committee positively consider our request for $101 million in funding for hydrogen and fuel cell activities managed by the Office of Energy Efficiency and Renewable Energy, and $50 million for solid oxide fuel research and development managed by the Office of Fossil Energy. We know that this is an era of tight budgets. That is why our request for fiscal year 2018 EERE budget is identical to the appropriated level of this year, and our Office of Fossil Energy Funding request is identical to what we requested for 2017. The members of FCHEA truly appreciate the consistent level of bipartisan support given to these programs by this committee, Congress, and past administrations. If we were to be asked how money for EER would be best put to work at the Department of Energy, I would provide you with the following response. It is the industry's opinion that the bulk of appropriated monies should focus on three main areas: hydrogen research and development, market transformation, and stationary and storage applications. For hydrogen research and development, we ask for funds to further enhance hydrogen metering devices, for retail fueling stations, improve hydrogen compressors, and reduce the costs of storage and transport. In addition, the department should identify competitive opportunities to help develop robust, affordable hydrogen infrastructure components. This would encourage entrance to the markets, drive down costs, and speed transition. As a package, all these proposed ideas will help in the development of a reliable and cost-effective infrastructure. The department should also continue modest proof of concept demonstrations. These activities have proven successful for material handling equipment at warehouses and show significant progress for air and sea ports. Market transformation funding enables fuel cell and vehicle companies to overcome cost-prohibitive steps, that has the best chance to perform well against environmentally problematic incumbent technology. Within the stationary generation application sector, we are encouraged by the committee's recognition of the role that fuel cells and hydrogen can play in energy storage. Excess power can be utilized to generate hydrogen for future electricity generation, transportation fuel, and for use in the natural gas pipeline. Finally, with regard to EERE, we continue to call for the committee to encourage the Secretary of Energy to work with the Secretary of Transportation on coordinating efforts to deploy hydrogen fueling infrastructure, particularly as part of a major investment in U.S. infrastructure. Concerning the Solid Oxide Fuel Cell Program managed by the Office of Fossil Energy, our request for $50 million would continue essential R&D in support of the development of large- scale, highly-efficient ultra clean stationary power generation fuel cell systems. This program is the only one of its kind globally, providing the U.S. with a unique competitive advantage over foreign competitors. Solid oxide fuel cells utilize domestic fuels that include classified coal, natural gas, bio gas, hydrogen, and biodiesel. Completion of this work will result in ultra-efficient stationary power systems for the distributed as well as central power applications. Success continues in reaching performance milestones for durability and cost. This essential R&D must continue in order to reach the requirements for successful introducing of solid oxide fuel cell technology. Modern-day fuel cells are the result of American ingenuity, which played a key role in our quest in landing a man on the moon. We believe that this transformational, clean technology will play a role in addressing many of our energy and transportation challenges. If we make the right decisions today, we will ensure that future high-quality jobs will be created here while at the same time improving our economy and environment, bolstering our national security, and making us energy independent. We look forward to working with you and the committee staff as the process continues. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Morry. Mr. Markowitz. Thank you. Mr. Simpson. And we look forward to working with you. Ms. Callahan. ---------- Wednesday, May 3, 2017. ALLIANCE TO SAVE ENERGY WITNESS KATERI CALLAHAN, PRESIDENT, ALLIANCE TO SAVE ENERGY Ms. Callahan. Hi. Thank you very much. I really appreciate the opportunity to testify before you today, Mr. Chairman and Ranking Member Kaptur. And I want to lay out and highlight the critical and cost-effective, energy-effective energy efficiency programs being carried out at the Office of Energy Efficiency and Renewable Energy. I want to start, like so many others have, in saying thank you to you and the other members of the committee for your longstanding support of Federal energy efficiency programs. We were really encouraged by the Omnibus Bill, which includes robust funding for these programs. And to say thank you, I am going to try to buy you back a minute or two of the time that you are running over today. My name is Kateri Callahan, and I serve as the president of the Alliance to Save Energy. We are a bipartisan, nonprofit organization with the mission of advancing national policies that make our economy more energy productive, and that results in creation of jobs, reduction of energy costs for consumers and businesses, increased global competitiveness, and, of course, reduction in the harmful emissions associated with energy production. The Alliance enjoys the leadership of 13 members of Congress who serve in an honorary capacity on our Board of Directors. We also enjoy the support of over 120 companies and institutions that help us in our advocacy, education, communications, and market transformation work. We are celebrating our 40th anniversary this year, and over those past four decades, we witnessed a remarkable decoupling in the growth in energy demand in this country from the growth in our economy. Today, we are twice as energy productive as we were in the late 1970s. What does that mean? That means we are getting two times--twice--as much GDP for each unit of energy that we consume, so we are much more energy productive. And what did that do? In the creation of this real evolution or transition in our energy use, we have created an enormous and a domestic- based energy efficiency industry. You have heard a lot of the other witnesses today talk about the 2.2 million jobs that have been created. I brought along a visual to just kind of emphasize and highlight this for you. You can see that it is 2.2 of the 3 million clean energy jobs. But the bigger story is, it is a third of the jobs in the overall energy sector in the U.S. You can also see that the majority of these jobs are in the construction and the manufacturing sectors, so these are largely nonexportable and good-paying jobs. One thing that others have not pointed out is that it is a rapidly growing industry. We realized 6 percent growth between 2015 and 2016 in this industry, and we are expecting another 9 percent growth just this year. And these jobs can be found all across the United States. It is detailed in my testimony. But, for example, in your district, Mr. Simpson, there are over 900 energy efficiency jobs. And, Ms. Kaptur, in your district in Ohio, there are 4,200 energy efficiency jobs. Ms. Kaptur. And I think that is a low number. Ms. Callahan. And I would agree with you, but we always err on the side of being cautious and conservative. In total for the committee, there are 46,000 jobs that are represented just in the districts of the committee members. It is impossible to understate the role of Federal policies and investment, from building energy codes, to appliance and equipment and efficiency standards, to public and private partnerships in this remarkable evolution, to an economy that is doing much more with less in terms of energy consumption. For this reason, we are requesting funding at levels at least equivalent to those you included in the Omnibus, and in a few instances have suggested slight increases to keep programs. As detailed in my testimony, the energy efficiency programs at DOE are paying out huge returns to consumers and businesses on the modest taxpayer investments. There are just three quick examples that I want to call to your attention. First is the State Energy Program, or SEP, that is currently funded at $50 million. We join with the others in requesting a $20 million increase to this program, which is delivering direct energy savings of $7 for every $1 of Federal support. The second is the Weatherization Assistance Program. And you have heard chapter and verse on that. We join with the others in requesting a modest increase of $5 million to the $230 million level for a program that has a cost-benefit ratio of 4 to 1. One thing that has not been talked a lot about today, that I have heard, is the Building Technology Office. That is where we house the Appliance and Equipment Standards Program, which is saving consumers, through the standards that we put in place, $500 a year on their energy bill, and also houses the Building Energy Codes Program. New homes that are built to codes certified by DOE through that program can expect a net savings in as little as 1 to 2 years. Again, these are just examples of the programs that are detailed. All of them have that kind of cost-effective, impactful benefit to our economy, so we urge you to continue to provide robust funding in support of these programs. We believe the return on investment to our economy and also to our energy security and our environment is simply too large to pass up. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. I appreciate your being here today. Ms. Callahan. Thank you. Mr. Simpson. Dub Taylor. ---------- Wednesday, May 3, 2017. TEXAS STATE ENERGY CONSERVATION OFFICE WITNESS WILLIAM ``DUB'' TAYLOR, DIRECTOR, TEXAS STATE ENERGY CONSERVATION OFFICE Mr. Taylor. Thank you, sir. My name is William ``Dub'' Taylor and I serve as the State Energy Office director from Texas. It is an honor to appear before the subcommittee today on behalf of the National Association of State Energy Officials, or NASEO. NASEO represents the governor-designated energy officials from every State in U.S. territory. It is a forum for us to share good ideas on all of the above energy solutions and to cooperate regionally and nationally. I want to thank Chairman Simpson, Ranking Member Kaptur, and the subcommittee for your support of $50 million for the State Energy Program, or SEP, and $225 million for the Weatherization Assistance Program, and the fiscal year 2017 House bill last spring and as part of this week's budget deal. First and foremost, I am here today asking the subcommittee for support of $70 million for SEP in fiscal year 2018. In addition to seeking $50 million in base SEP formula funds, we think that additional targeted funding to enhance Federal energy cooperation in energy emergency preparedness and response, including physical and cybersecurity of the energy infrastructure, should be provided. Energy emergency preparedness is a necessity and is a highly interdependent Federal, State, private function, covering electricity, natural gas, petroleum, and other fuels. In the most recent year in which we have data, nearly 50 percent of the cyber attacks in the United States were on energy infrastructure, with significant activity in the petroleum sector, much of that in my own State. Second, we strongly disagree with the administration's proposals to eliminate SEP and Weatherization on the basis that it may interfere with State policymaking. I can tell you, the States know SEP as the only daily administered program which embodies cooperative Federalism and affords governors control of allocating funds within very broad guidelines, as intended by the Congress, all without unnecessary Federal Government interference in State policies. In fact, governor support for SEP and Weatherization is extraordinary. This year, the National Governors Association called out SEP and Weatherization as top funding priorities in the energy area, urging the Trump administration to ``continue and expand the Weatherization Assistance Program and State Energy Program.'' Moreover, the Southern States Energy Board, led by Governors Hutchinson of Arkansas and Adkins of Kentucky, the Governors' Wind & Solar Energy Coalition led by Governors Raimondo of Rhode Island and Brownback of Kansas, and the Western Interstate Energy Board, led by the energy directors, my counterparts, Governors Herbert of Utah and Sandoval of Nevada, all call for continued and expanding funding of SEP. SEP is a strong Federal-State partnership program and it requires matching State funds. According to two Oak Ridge National Laboratory studies, one just referred to by Ms. Callahan, SEP provides taxpayers with exceptional value. Oak Ridge found that each dollar of SEP funds used by States leverages $10.71 of State and private funds and realizes $7.22 in energy cost savings for citizens and businesses. In Texas, like most States, we are focused on the role of energy and economic development. Diverse energy resources and low energy prices provide Texas with an advantage, and we want to keep it that way. As an example, in Texas we leverage $293,000 in SEP funds to support clean energy technology startup companies, which have attracted $7 million in investments, created 86 jobs, and resulted in $7.9 million in economic impact. We have allocated SEP funding to the Texas Industries of the Future Program, which has had great success in supporting chemical manufacturers and refiners, to decrease the energy and water intensity of their Texas operations. And we utilized SEP funds to support local building energy code adoption and compliance by training homebuilders, contractors, and code officials across the State. Each of these successes and others are possible using the flexible SEP formula funds, which give our States and other States the ability to allocate funding to meet our top energy priorities and opportunities. In Texas, SEP funds are also used to conduct energy and water assessments for public sector, taxpayer-supported facilities across the State. Projects identified can then be implemented under the State-funded LoneSTAR Revolving Loan Program, which offers low-cost financing to K-12 schools, local governments, and State agencies. This program has awarded almost 300 loans totaling $375 million for projects that have saved borrowers $523 million in utility costs, an average of 18.5 savings annually. Finally, we would prefer that all SEP funds come to the States through the base formula account rather than the small competitive program or technical assistance which DOE has opted to undertake at its discretion over the past several years. We look forward to working with the subcommittee, with the Congress, and the new administration in advancing our energy policies and the good work of the States and private sector. Thank you and I am happy to take any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. I appreciate you being here today. We look forward to working with you. Robert. ---------- Wednesday, May 3, 2017. HANNON ARMSTRONG WITNESS ROBERT JOHNSON, VICE PRESIDENT, HANNON ARMSTRONG Mr. Johnson. Good afternoon, and thank you for having me here. In the interest of time, I will try to be brief. We are a leading venture in the sustainable infrastructure and energy business and we are urging your support in funding of the Federal Energy Management Program, specifically FEMP. It is an important program that oversees and facilitates the implementation of energy savings performance contracts, or ESPCs as they are known, as well as utility energy services contracts, UESCs as they are known; these activities all of which are currently contemplated in the 2018 Energy and Water Development Appropriations Bill. To give you a little background on who Hannon Armstrong is, we are a 36-year-old company, New York Stock Exchange listed, and ticker symbol HSAI. We invest in energy infrastructure to the extent that it is energy efficiency wind and solar projects. To give you an idea, we have approximately 23,000 acres of land that we own underneath wind and solar projects, some of which is here with some of the members of this committee, Mr. Fortenberry as well as Mr. Calvert. In each of those cases, we own approximately 7 megawatts of power that is being generated in a distributed manner in each of their locations. I, unfortunately, cannot say the same right now for the two jurisdictions that we have in attendance today, but I am sure that we will over time. Ms. Katpur. Excuse me, sir, you have to deal with the birders in Ohio. Yeah, yeah. Mr. Johnson. I apologize. Specifically, I want to talk a little bit about ESPCs and UESCs. These critical contracts, they enable the Federal agencies to procure energy services and projects without relying solely on appropriated funds and they come at no added cost to the government. ESPCs and UESCs are tools that help agencies and installations replace, operate, and maintain aging energy using equipment. They reduce energy and intensity, as Kateri had mentioned before, saving taxpayer dollars, creating jobs, and in many cases improving the mission readiness of the Federal agencies. These innovative contracts require that each of the ESCOs that underpin the contracts perform annual assurance of the financial savings that are realized through these contracts. ESPCs and UESCs also have resulted in thousands of jobs created. So we have talked about jobs today in a variety of contexts. In this context, it is in the Federal ESPC and UESC world where the Federal Performance Contracting Coalition, FPC, in particular, has estimated that approximately for every $10 million of investment made in ESPCs and UESCs there are 95 high-paying jobs available here in the U.S. These jobs work in three areas. One is manufacturing, so manufacturing the equipment that is put in; two is the installers through subcontractors and the like; and three are the ESCOs, or the Energy Services Companies, that do the work as a prime contractor to the government. FEMP in particular is authorized to track agency progress on particularly section 432 of the Energy Independence and Security Act of 2007. In this capacity, they facilitate report findings of implemented projects and report annual building benchmarking metrics. In addition, FEMP is authorized by statute to appropriate procedures and methods for use by Federal agencies with these ESPCs, in particular on 42 U.S.C. 8287. In addition, FEMP's most important effort is the coordinated and defined program management of ESPCs for the Federal agencies. FEMP staff helps agencies use ESPCs in several ways, advising the agencies on scoping and procurement activities, helping agencies select third party energy services companies, which I mentioned before, finalizing contract terms and project approval, and monitoring the project implementation and performance of these contracts over the long period of time, which can be up to 25 years in many cases. FEMP is the program manager for this critical ESPC contracting tool used by Federal agencies to implement ESPCs. That is the Department of Energy ESPC, what is called an indefinite delivery, indefinite quantity, IDIQ, contract. This was recently, the third version of this was recently announced last week by the Department of Energy where there are 21 new contractors now awarded that contract under the DOE ESPC IDIQ. This new contract is an essential tool for Federal agencies and installations on the military side to continue achieving greater savings for the taxpayers and obviously promote the additional job creation that we have just mentioned. In closing, we strongly urge that the $28 million in funding for FEMP that has been proposed in the 2018 budget be approved so FEMP can continue its vital work, in particular on the ESPCs front with Federal agencies. We thank you for providing this opportunity and look forward to any questions and comments you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Robert, we appreciate you being here today and we will take into consideration your testimony when we put together our budget. Mr. Johnson. And I will report back on any projects we have in your jurisdiction. Mr. Simpson. Thank you. Bill. ---------- Wednesday, May 3, 2017. MID-WEST ELECTRIC CONSUMERS ASSOCIATION WITNESS WILLIAM K. DRUMMOND, EXECUTIVE DIRECTOR, MID-WEST ELECTRIC CONSUMERS ASSOCIATION Mr. Drummond. Good afternoon, Mr. Chairman, Ranking Member Kaptur. My name is Bill Drummond. I am the executive director of Mid-West Electric Consumers Association. Mid-West represents about 300 not-for-profit utilities that purchase power from the Federal hydroelectric facilities on the Missouri River and its tributaries under the Pick-Sloan Missouri Basin Program. The projects are operated by the U.S. Army Corps of Engineers and the Bureau of Reclamation and the power is sold by Western Area Power Administration or WAPA. This cost-based, renewable, non- carbon emitting power is an essential component of my members' power supply. Mid-West member utilities purchase almost 3,000 megawatts of installed capacity and the associated energy under long-term contracts, some of which extend beyond 2050. In exchange for these long-term commitments to purchase WAPA power, Mid-West members pay rates that recover the capital costs of the Federal investment plus interest in the hydropower generation and transmission facilities. Hydropower's share of the joint costs including the dams and the spillways and other project purposes costs that are assigned by Congress to hydropower beneficiaries. WAPA's rates also recover the annual operation and maintenance costs of the hydropower facilities. WAPA's and the other three power marketing administrations cost-based rates are not subsidized by the United States Treasury or the taxpayer. Section 5 of the Flood Control Act of 1944 requires that the power marketing administrations' market Federal power at cost-based rates. Prior administrations have recommended raising the power marketing administration rates to market- based rather than the present cost-based system. Congress has consistently reaffirmed the use of cost-based rates for the power marketing administrations. There have also been proposals to privatize the PMAs by selling them to the highest bidder. Mid-West urges you to reject any proposed sale of the power marketing administrations or the imposition of market-based rates. These ill-advised proposals would have a devastating impact on the fragile rural economy of the Upper Great Plains. Second, the members of Mid-West want to thank the subcommittee for the proposal to reduce WAPA's net zero appropriation, also known as offsetting discretionary spending in the Omnibus Spending Bill for fiscal year 2017. That proposal is a reduction of $37 million from the fiscal year 2016 levels. We support a continuation of that reduction into 2018 and beyond to address a double budgeting issue with the Parker-Davis Intertie Projects. So unlike a lot of other folks, we are actually here requesting a reduction and appreciate the subcommittee's support for that. Mr. Simpson. We will mark that down. Mr. Drummond. Finally, Mid-West has a good working relationship with WAPA and its sister Federal agencies, the Corps, and the Bureau of Reclamation regarding the flow of current and rejected financial information. While Mid-West members still have healthy disagreements with some of WAPA's and the Corps' and Reclamation's spending proposals, we have been able to work together to obtain the data we need to be able to provide informed comments. We respect the efforts of the employees and the leadership of these agencies in managing these Federal assets under complicated circumstances. So in conclusion, Mid-West members strongly support the Western Area Power Administration and will oppose any efforts to sell it or the other power marketing administrations or to change to market-based rates. We support a $35 million reduction in WAPA's net zero appropriation request for fiscal year 2017 and appreciate the subcommittee's support of the fiscal year 2017 Omnibus Spending Proposal that calls for a $37 million reduction. And finally, we appreciate the working relationship that we have with WAPA, the Corps and the Bureau of Reclamation. So thank you for the opportunity to testify this afternoon and I look forward to any questions you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Ms. Kaptur. Mr. Chairman, I do have a question of this witness. For the record, thank you so much for testifying. I am trying to still secure in my own mind the different rates that consumers, businesses, industries pay across the country for kilowatt hour, for usage, depending on the type of energy system that they are subject to. I am wondering sir, if you could provide the per kilowatt cost on average to your residential consumers, your industrial consumers, and then if there are specials in the rural areas, I would like to know what those are, and I want to compare those to my region of the county, which has a very different energy umbrella than your own. Mr. Drummond. Certainly. Ms. Kaptur. That would be very valuable to me. Mr. Drummond. No, I would be happy to provide that. I do not have it with me right today. I can tell you that for most of my members, the cost of power that they get from their--not only the Western Area Power Administration, but also their other power suppliers amounts on average to about half of their total cost of doing business. The rest of the cost of doing business includes distribution systems, the back office that is necessary to provide bills, the power management systems, et cetera. So that is roughly how the wholesale supply versus the other costs of doing business work out. But I can get you our average cost of supplying that power. I would be happy to do that. Ms. Kaptur. Thank you so much. Mr. Drummond. Yes, ma'am. Mr. Simpson. Thank you. Jorge. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, May 3, 2017. GRAND CANYON STATE ELECTRIC COOPERATIVE ASSOCIATION WITNESS JORGE S. CANACA, DIRECTOR OF FEDERAL RELATIONS AND REGULATORY AFFAIRS, GRAND CANYON STATE ELECTRIC COOPERATIVE ASSOCIATION Mr. Canaca. Mr. Chairman and Ranking Member and subcommittee members, thank you for holding this hearing and providing the opportunity for public testimony. My name is Jorge Canaca. I am the director of Federal relations and regulatory affairs for the Grand Canyon State Electric Cooperative Association. We are a regional service organization representing the interests of electric cooperative utilities and their customers and submit the following testimony which will focus on the Western Area Power Administration's budget practices, the need for budget transparency and the need for customer involvement. We respectfully request the subcommittee provide adequate funding for Western to meet its primary statutory obligations to market, sell, and transmit preference power. However, due to potential agency-wide customer impact and the inappropriate nature of double budgeting practices, we recommend that Western's net zero request be reduced in the fiscal year 2018 budget by 35 million and by equivalent amounts in future fiscal years until Western corrects the situation through budget formulation. We further ask the subcommittee to cap the use of net zero authority to ensure that it is not duplicative of funding the Desert Southwest Region Office already receives through prepayment authority. The Grand Canyon Electric Cooperative Association is a member organization consisting of six electric distribution and generation transmission cooperatives who collectively service approximately 500,000 rural residents across Arizona. Our member cooperatives are customer-owned, not-for-profit utilities and on average one-third of our members live at or below the Federal poverty level. Now, for 75 years, electric cooperatives have been proud to keep the lights on by providing safe, reliable, and affordable electricity and America's 838 not-for-profit electric distribution cooperatives provide service to 42 million people in 47 States, and collectively, their service territories cover 75 percent of the U.S. land mass. Now, under the Reclamation Project Act and Flood Control Act, as Bill mentioned earlier, Western is required to market preference power at the lowest possible rates to customers consistent with sound business practices. Electric cooperatives were some of the first purchasers of Federal hydropower delivered to homes, farms, ranches, and rural businesses. Currently, Western relies on congressional appropriations and funds generated directly by customer-owned utilities that are power contractors to maintain its capital program mission. From a budget scoring perspective, Western is considered budget neutral and not a draw on the Treasury. This is only possible because preference power customers reimburse the cost of Western's capital investment through rates and are thus ultimately responsible for repayment of the Federal investment. Now, to that end, we support continued funding for Western to meet its statutory mission. We believe Western is a valued partner. But recently, however, we have witnessed Western's financial practices come under scrutiny. A 2015 GAO report identified concerns with management and size of unobligated balances held by Western and recommended that Western implement a strategy and take action to reduce these balances. Now, while we applaud Western for addressing a self-created financial mismanagement issue, and returning hundreds of millions of dollars to the Treasury, the electric cooperative customers believe the accrual of unobligated balances was a direct result of net zero budget authority granted to Western in 2010. So that is the double budgeting issue. Now, therefore, we also ask the subcommittee to rescind $70 million in unobligated balances accrued through the use of prepayment authority and the net zero appropriations. According to its own estimates, Western returned 328 million to the Treasury Reclamation Fund in fiscal year 2016 and a total of 894 in the previous 5 years. Yet, during that same period, our electric rates increased by 32 percent. These increases in both power rates and unobligated balances occurred during a period when the government was operating under continuing resolutions. And in conclusion, I would just like to add that Western has pursued expanded budget authority while systematic funding problems surfaced. With respect to some of Western's major projects, customers did not have timely, meaningful participation in Western's 10-year planning and Federal budget development. And most importantly, much of Western's financial processes and decision-making schedules are not transparent to the customer. By working together, Congress, Western, and preference power customers can address the multiple goals and challenges of Federal hydropower resource and maximize the benefit of the system for all. Now, let me conclude my testimony by thanking the members of the subcommittee for their support and special thanks to Arizona Congressman Paul Gosar for his continued leadership in the House on this important issue to Arizona's electric rate payers. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. All right, thank you for being here today and for your testimony, and as you can tell, I have a habit of hammering people's names, and I apologize for that. Mr. Canaca. It is perfectly fine, sir. Ms. Kaptur. Mr. Chairman, thank you. I would like to also ask this witness if you could provide for the record, follow-up on page 4 of your testimony, you say your rate payers paid electric rates for cooperative customers increased by an average of 6.5 percent each year. Could you provide an updated summary for our committee of the per kilowatt cost of energy for your customers in the residential and industrial and rural consumer arenas? Can you do that? Mr. Canaca. Absolutely. I would be happy to. Ms. Kaptur. Thank you. Mr. Simpson. Thank you. Robert Lynch. ---------- Wednesday, May 3, 2017. IRRIGATION AND ELECTRICAL DISTRICTS' ASSOCIATION OF AZ WITNESS ROBERT S. LYNCH, COUNSEL TO THE IRRIGATION AND ELECTRICAL DISTRICTS' ASSOCIATION OF AZ, ROBERT S. LYNCH & ASSOCIATES Mr. Lynch. I am Bob Lynch and I am an attorney in Phoenix, Arizona. Let me first talk to you about the net zero concept. When it was originally authorized, it was authorized for Pick- Sloan, Bill Drummond's group that he represents is the majority of their customers. And we went along with it, but it was not supposed to apply in the Colorado River Basin. We did not need it, we did not want it. And just our way of explaining it to you is, well, I have an 8-year-old granddaughter. She is smart, she is good looking, she is talented. But if I took her shopping, would I give her my credit card? No. Well, in our view, the way this worked out in the Desert Southwest Region, WAPA has a net zero credit card, except we do not get to see the shopping list. All we see is what they bought when they hand us the bill. And we are trying to work to change that. We established a preference customer committee with the co-ops and the MUNIs to try to have a dialogue with Western, WAPA, to see if we can straighten this out. But for now, we are out of luck. What we found out just recently, within the last couple of weeks, is that last spring, the Desert Southwest Office started converting all of their advanced funding that we had been paying for, including O&M, to net zero. And so they were taking, you know, our existing rate and paying and we were paying, and we were paying in, and paying the O&M and they were converting it to this net zero appropriation, which accounts for part of the double budgeting issue that you have heard about. We think we can fix it, but it is going to require their cooperation. And if we do not get the cooperation, I would respectfully request the opportunity to come back here and tell you all about it and tell you what I think ought to happen to them because it is happening to us now and it needs fixing. On the transparency issue, WAPA is very transparent about what they have done to us. They are just not very transparent about what they are going to do to us next. And we have got to try to fix that, also. And if we do not get it fixed, we will be back again asking for your help. And one of the things that has come up in all of this is consolidation. WAPA has consolidated a lot of functions in their headquarters. In 2010, they had 260 FTEs; starting in fiscal year 2018, they will have 390. Not all those folks live in Denver. Some of them are in Sacramento and Loveland and Phoenix and every other place while the problem is they do not talk to us. If you are somebody in Sacramento doing something for the whole agency, why do you care what people in Phoenix think? And to the best of our knowledge, they are not being asked to talk to us. So to us, consolidation has turned out to be the enemy of cooperation. And we do not know exactly how to fix that, to tell you the truth. A couple of things happened on Monday that sort of changed my testimony. Number one, in the explanatory statement for the Consolidated Appropriation Bill, on page 41, there is a comment about termination provisions in contracts and you are telling Western, give us a report in 60 days. Well, I lived it, starting in the 70's, just in case you would like to hear the rest of the story, I would be happy to supply it to you. The other thing is that there is a $34 million authorization for 2017 to reduce unobligated balances, but it says ``may.'' Now, in the Clinton administration, a colleague of mine who was solicitor of the Department of the Interior wrote to Bruce Babbitt and said, if it is in the bill, you have got to obey it; if it is in the committee report, you do not. So I do not know what ``may'' means or what you think ``may'' means in that explanatory statement, but I would caution you to keep an eye on this because if they do not reduce it, then that 35 million we are all asking for could be 69 or 70 and we would be happy to have it. And to the best of my knowledge, it would not bother Western at all in terms of their budget. So thank you for the opportunity to be here today and talk to you about these important subjects, because they do affect the pocketbooks of an awful lot of folk. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. I appreciate your testimony. And ``may'' means they may or they may not. And ``shall'' means they shall. And the history is, that if it is in bill language, they do have to follow it. In report language, it is strongly suggested that they follow it because next year they are going to have to be answerable for it. So that is kind of where it ranks in everything. But we thank you for being here and for your testimony. Thank you, sir. Nicki. ---------- Wednesday, May 3, 2017. SOUTHWESTERN POWER RESOURCES ASSOCIATION WITNESS NICKI FULLER, EXECUTIVE DIRECTOR, SOUTHWESTERN POWER RESOURCES ASSOCIATION Ms. Fuller. Thank you, sir. And I believe I am the last person to talk about the PMAs, so you will only have to hear about this one more time. Mr. Simpson. Okay. Ms. Fuller. Mr. Chairman and members of the subcommittee. My name is Nicki Fuller and I am the executive director of the Southwestern Power Resources Association. I come before you today as a bit of a unicorn. I am a grateful constituent, a happy customer, and we have a Federal program that works and pay its own way, without any cost to the taxpayer. In addition, I am proud of the hard work we have done in my region to protect the Federal infrastructure, to ensure we have a program that is successful and sustainable. SPRA is a non-for-profit organization of rural electric cooperatives and public power systems in Arkansas, Kansas, Louisiana, Missouri, Oklahoma, and Texas, that are customers of the Southwestern Power Administration, which is part of the Department of Energy. Southwestern markets hydroelectric power generated at 24 multipurpose dams in the region. SPRA members serve over 8.2 million end users in this region. Unlike most Federal programs, the PMAs like Southwestern pay their own way. Every Federal dollar spent on Federal hydropower program is repaid through the rates charged to the customers. This includes all costs of generating and marketing the hydroelectric energy and capacity incurred by both the Corps and the PMA, plus interest on capital costs. Southwestern receives a diminishing amount of appropriations every year in Congress in the amount of about $11 million, or 7 percent of their total operating budget. These appropriations plus all other expenses for Southwestern and for the Corps' cost for hydropower and a percentage of joint use expenses are included in the rates the customers pay. The taxpayers do not subsidize or pay for any activity of any PMA, including Southwestern. As you will likely note from the testimony of other PMA customer groups across the country today, each PMA is very different. Cooperation between Southwestern and its customers is a primary mission of SPRA. Quarterly, Southwestern updates my board on all issues of importance and asks for input. This transparency is the key to our long and successful relationship as business partners. The established practice of frequent communication has allowed these issues to be addressed in a manner which is fair to all parties. Today, I will discuss two issues which are very important to SPRA and its members. They are, one, the need for increased financial flexibility of Southwestern and, two, customer funding of Federal infrastructure. One, the system of Southwestern is very dependent upon rain and does not have the capacity to withstand a long-term drought. Regardless of the water conditions, Southwestern has a contractual obligation to my members to deliver the power it guarantees. For this reason, during a drought Southwestern must purchase power and these costs are passed through the power rates to the customers. SPRA has asked Southwestern if there is a way to pay for these purchases incrementally in advance to reduce rate spikes. To achieve this incremental collection, Southwestern would need an account in the U.S. Treasury with the authority to hold funds across fiscal years with the ability to access it when needed. Unfortunately, this financial flexibility that is commonsense business practice has not been able to pass the legislative hurdles necessary for use. Financial flexibility tools such as the one mentioned above are key to the continued success of Southwestern. As energy and capacity markets become more evolved, Southwestern must have the ability to act consistent with sound business principles as it is statutorily obligated to do. Mr. Simpson. May I ask you, is there legislation to do what you are suggesting here that has been introduced in Congress? Ms. Fuller. There was last session and it scored. We are not sure why it scored. It is just a savings account in the Treasury. So it was not able to pass because of that reason. Mr. Simpson. Okay. Ms. Kaptur. Introduce the legislation, please? Ms. Fuller. Sure. It was in the Senate and it was Cassidy and McCaskill from Missouri and Louisiana. Ms. Kaptur. Okay. Ms. Fuller. Thank you. The financial flexibility not only makes good business sense, it is highly desired by us, the customers, to pay the rates. My second point, customer-funding. With all the discussion of public-private partnerships, or P3, I want to inform the subcommittee about a long successful P3 program in our region. Beginning in the 1990s, Federal power customers began noticing increased outages of Corps hydropower plants which was causing the PMAs to have to purchase expensive replacement power. Even though there was an increase in outages due to maintenance issues, SPRA saw significantly decreased appropriations for maintenance of this infrastructure. With this in mind, SPRA in partnership with the Corps in Southwestern, put together the trust MOA. Under this agreement, the customers meet with the Corps and Southwestern to determine the funding needs for the following fiscal year. This cooperative process allows the customers, the ones that pay the expenses, to have input on how their money is spent and it allows the Corps to have a predictable revenue stream to sustain this Federal infrastructure. We have committed to the Corps that we will fund through the trust MOA about $2.4 billion for hydropower infrastructure over the next 30 years to complete rehabilitation of all 24 Corps hydropower plants marketed by Southwestern. Through this process, we are able to keep local control and oversight, sustain Federal infrastructure, and ensure the longevity and future of the Federal hydropower program. In conclusion, I come to you today in the rare and enviable position of a constituent and customer that is happy. Unlike other Federal programs, this program costs the taxpayers absolutely nothing, yet benefits millions of citizens while investing in Federal infrastructure assets. These dams provide so many benefits to my region, including navigation, flood control, water supply, environmental programs, and recreation. Without the Federal hydropower customers paying the bills, more of these costs of these joint activities would be borne on the taxpayer. Mr. Chairman, this concludes my testimony. Thank you for allowing me to come here today to discuss this important issue. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Nicki. We appreciate it. Ms. Fuller. Thank you. Ms. Kaptur. Mr. Chairman, I just wanted to ask---- Ms. Fuller. Sure. Ms. Kaptur [continuing]. Ms. Fuller, if she could also submit for the record the per kilowatt hour cost to your consumers, residential/industrial. Ms. Fuller. Absolutely, I would be happy to. Ms. Kaptur. For the record. Ms. Fuller. Yes. Ms. Kaptur. Thank you. Ms. Fuller. Thank you very much. Mr. Simpson. Sheri. ---------- Wednesday, May 3, 2017. OFFICE OF TECHNOLOGY & INNOVATION, COMMONWEALTH OF PENNSYLVANIA WITNESS SHERI COLLINS, DEPUTY SECRETARY OF THE OFFICE OF TECHNOLOGY & INNOVATION, COMMONWEALTH OF PENNSYLVANIA Ms. Collins. Good afternoon. Chairman Simpson, thank you, members of this committee, for allowing me to speak before you today and to offer my comments on the important role of the Appalachian Regional Commission plays in supporting the 420 counties across our 13 States. The ARC works tirelessly alongside our local development districts, nonprofit organizations and the States to bring our respective ARC regions into socioeconomic parity with the rest of this great country. In my capacity, I have the distinct pleasure of serving as Governor Tom Wolf's State alternate to the Appalachian Regional Commission. For the first time since 1991, Pennsylvania's governor is serving as the State's co-chair for the ARC program, and we could not be more excited and proud to have our governor represent the ARC regions. Governor Wolf sends his regards to you, Chairman Simpson, and to members of the committee, and appreciates your interest in this program. I have been a Commonwealth employee for 30 years; the last 12 at the Pennsylvania Department of Community and Economic Development. As deputy secretary for the Office of Technology and Innovation, my primary focus has always been on supporting Pennsylvania's innovators and entrepreneurs and the programs that support them, including the world-renowned Ben Franklin Technology Partners. In 2015, I was given the opportunity to serve as the governor's State-alternate to the ARC program. It was not until I started to traverse the Commonwealth, visiting completed projects and conducting site visits on those projects to be submitted for approval that I fully understood and appreciated the ARC program and the impact that this Federal funding has on the citizens of Appalachia. Oftentimes, I think that those of us who sit near to or under the Capitol dome oftentimes fail to appreciate the world around us. We get so focused on what is right in front of us, that we lose sight of areas like Appalachia and we fail to recognize that not everyone in this great Nation has the same opportunities afforded to them as maybe you or I do. I do myself not hail from Appalachia, but I have become a huge supporter of the ARC program. And have seen up close and very personal the impact this funding has had on our businesses and our citizens alike. On a recent visit to the Scranton School for the Deaf and Hard of Hearing Children, I was able to see firsthand the impact ARC funds are having on our most valuable assets, our children. This specialized school, located in Scranton, Pennsylvania, is a nonprofit, tuition-free school that serves children from birth to eighth grade. The school's mission is to prepare each deaf and hard-of-hearing student for all aspects of life throughout continuum of high quality individualized educational and extracurricular programs and is an active partner in resource for the community. The school is committed to ensuring that each and every student is capable of achieving his or her maximum potential. ARC funds in the amount of $25,000, along with a $25,000 match from the Margaret Briggs Foundation, were used to purchase smart panels, specialized lighting, computers, a drone, and editing software that allows deaf and hard-of- hearing children to improve their skills using technology, expressive communication skills using American sign language, sign-supported English, and spoken English. This technology also allows the students to virtually interact with the student body at the Western Pennsylvania School for the Deaf as well as a small subset of deaf and hard-of-hearing students from other countries, including Sri Lanka and Ireland. This type of virtual connectivity allows the students to learn in a fun and interactive way and to see that there are children all around the globe who are deaf and hard-of-hearing just like them. Another example of how ARC funds has impacted the residents of Appalachia is located in Sullivan County, Pennsylvania. The Sullivan County Dental Clinic provides services to low-income patients. A 2010 assessment found that 33 percent of local adults had claimed that they had never had their teeth cleaned while regional pediatric oral surgeon characterized the area as the epicenter of tooth decay in Pennsylvania. Chairman Simpson, as a second-generation dentist, you surely can appreciate the importance of good oral hygiene and the need for accessible and affordable dental care. An ARC grant in the amount of $150,000 coupled with the mandatory matching funds will support the expansion and renovation of the Sullivan County Dental Clinic. This designated health professional shortage area will be renovated to allow low- income patients access to critical dental services in a private and spacious environment as to the current overly crowded and open one that they have now. The modifications to the dental clinic will help to lower the barriers to dental care, improving health conditions for patients and the community. And lastly, I would like to share with you a project out of Congressman Fleischmann's State, Tennessee. In 2014, in partnership with my State counterpart office, the Tennessee Department of Economic and Community Development, ARC invested $300,000 to the Appalachian Service Project in Johnson City, Tennessee to help build homes for low-income homeowners living in some of the State's most economically distressed areas. This project included veterans and their families. In the first 2 years of the project, 16 homes were completed, several of which were specifically for veterans. In many cases, these homes replaced substandard, unsafe, and inefficient housing units. In addition to financing the builds, ARC dollars helped local partners provide additional supportive services, such as financial counseling, reduced cost childcare and job training. As President Walter Crouch of the ASP said, when we talk about the veterans housing issue, a lot of people think we are talking about vets who may be living under bridges and that sort of thing, but what they do not realize is many vets and their families live in substandard housing or mobile units that need a lot of repair. Without support from the ARC, I think it goes without saying that these projects would not have come to fruition. As I close, I would ask every member of the subcommittee to take a long hard look at the work of the ARC and its supporting partners, such as our Local Development Districts. The work that the ARC has done since 1965 has transformed communities into vibrant epicenters, pardon me, and has enriched the lives of our brothers and sisters in ways that you may not imagine. Between October 2015 and January 2017, the ARC has invested $175.5 million in a total of 662 projects. The ARC funds have been matched by more than $257.4 million and will attract an additional $443.3 million in leveraged private investments in Appalachia, creating 23,670 jobs and educating over 49,000 students and workers in the region. While the 13 States that embody Appalachia have made great progress, there is still plenty of work to do to advance the region. Your continued financial support of this program is critical and necessary for the citizens and businesses of Appalachia. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Sandy. ---------- Wednesday, May 3, 2017. OFFICE OF KENTUCKY GOVERNOR MATT BEVIN WITNESS SANDY DUNAHOO, COMMISSIONER FOR THE DEPARTMENT FOR LOCAL GOVERNMENT, OFFICE OF KENTUCKY GOVERNOR MATT BEVIN Ms. Dunahoo. Good afternoon, Mr. Chairman and members of the committee. It is a pleasure to be here today. I am commissioner for the Department for Local Government in the Governor's Office in the Commonwealth of Kentucky. I respectfully come before your committee today with over 30 years of government public service and private consulting in the Appalachian region. I have been involved in hundreds of millions of dollars of projects created and developed for the sole purpose of improving the standard and substandard living conditions of the people of Appalachia. Today, I am here to share with you a personal story on a personal level regarding the work of the Appalachian Regional Commission and the impact that it has had. My father was born in Owsley County, Kentucky, at the turn of the century and he was one of 12 brothers and sisters. They lived in a four-room house. They sustained their family by farm products. They worked in the fields, they raised pigs, they grew crops, and the family lived by selling these products to friends and neighbors. There were no opportunities for them to earn a wage because there were very few jobs available. Educational opportunities were very difficult. No one in his family attained an education higher than the eighth grade. So eventually, they left Kentucky; they left their home. They went to places like Connersville, Indiana; Dighton, Ohio; Indianapolis; different communities north to seek jobs, seek employment. So eventually, 10 of his siblings left Kentucky. As they left to seek their fortune, they never forgot home and they always had a yearning to come back. But again, it was so difficult; there were no opportunities and they just could not do that. But they prospered and they did well, and they were hardworking and they were commonsense people, and they attained amazingly high levels of wealth just through their hard work, commitment, and dedication. Fine folks. Today, I manage the family property, the same property where my father was born and his siblings grew up. And it is a different world today for me and for my young son, and the reason for that is the Appalachian Regional Commission. There are opportunities available to us today that my family would have never dreamed about years ago. We have access to county- wide broadband internet; we have clean water, running water in our home, city water; we have access to city sewer--it is a few miles away, but it is possible to get it there; and the children in the community now have opportunities that were never available to them before. Some have become lawyers, doctors, pharmacists; they move on to levels of higher education; they have computers in the school, all because of the Appalachian Regional Commission. While this sounds wonderful--and it is; it is an incredible transformation from where we were when my father lived in Kentucky--we are far from being finished with this work. The work of the Appalachian Regional Commission still remains. At the beginning of the ARC, we had 214 distressed counties in the commission. Today, we have 84. Thirty-eight of the 84 are still in Kentucky. We are in the heart of Appalachia and we have the most distressed counties in the region. So what we are doing in our State is taking an aggressive effort to try to rectify this situation. We are doing everything we can to steward and marshal our resources wisely so that we can look toward funding the needs that we have within our State. We are looking at the mirror and we are taking a hard look at ourselves, and we are determining what is our future path going to be, and how are we going to get there, and how are going to raise our counties up from the distressed status, and we are making progress. We are cutting red tape, we are reducing the burden on small businesses, we are incentivizing economic development, and we are having--beginning to realize growth in the very same areas that have been struck by poverty for years. We are, again, asking the tough questions, making the tough decisions. Sometimes they are not so popular, but we are on the right path and we are beginning to realize results in an area that has been chronically distressed for years. Many people misunderstand the people of Appalachia, the strength, the resiliency, the ability to sustain, the ability to live with little, but they also misunderstand the value in people such as these. We have an incredible work ethic. Our people truly are only asking for an opportunity to succeed. So my story to you today is, while we have made great strides with the Appalachian Regional Commission since the early 1960s, the work is far from done, but we are working toward a path that someday we hope we can move the rest of these 84 counties to sustainability as we have the counties that have been able to attain before. We would like to thank each of you for your support of the ARC in the past and we would like to thank publicly Congressman Rogers for his support of the ARC, particularly since most of these counties are in his region. And most of all, I would like to thank you for listening to our story in Kentucky today and hope that we can trust you to help us move forward. Thank you. Mr. Simpson. Thank you, Sandy, and before if you guys would stick around for just a minute, I want to get in the testimony of Amy from the Delta Regional Commission and then we can ask some questions so go ahead Amy. ---------- -- -------- Wednesday, May 3, 2017. ARKANSAS ECONOMIC DEVELOPMENT COMISSION WITNESS AMY FECHER, EXECUTIVE VICE PRESIDENT OF OPERATIONS, ARKANSAS ECONOMIC DEVELOPMENT COMISSION Ms. Fecher. Thank you, Mr. Chairman and ranking member. My name is Amy Fecher and I represent the State of Arkansas and Governor Asa Hutchinson as his Designee to the Delta Regional Authority Board of Governors. I am here today to provide my testimony emphasizing the importance of the Delta Regional Authority and the continued need for investments that it provides in the Delta region. The Delta Regional Authority is an independent federal agency created in Congress in 2000 that serves 252 parishes and counties in an eight state region. DRA operates as a federal state partnership and works with the governors to improve economic outcomes and enhance the quality of life for the regions 10 million residents. DRA makes strategic investments into basic public infrastructure, transportation infrastructure, work force training and education and business development with an emphasis on the entrepreneurship to advance economic and community development in the region. The lower Mississippi River region though rich in natural and human resources lags behind the rest of the U.S. in economic growth and prosperity. In FY 2016, 234 of the 252 counties and parishes within the region were deemed economically distressed. 21 percent of the region lives in poverty and only 20 percent of the Delta's population has a bachelor's degree or higher putting our regions workers at a disadvantage completely with the rest of the nation. I believe DRA can serve as a valuable tool to carry out the goals of President Trump and Congress to strengthen our nation's infrastructure and economy. DRA receives the majority of its appropriations from this subcommittee. Since FY 2002 DRA has invested approximately $163 million into basic public infrastructure and transportation improvements, workforce training and education as well as business development projects. These investments have helped leverage 3.5 billion in other public and private funds. As an independent agency operating as a federal state partnership, DRA works closely with each of the eight governors and their designees to invest in economic and community development projects supporting the needs of their respective states. DRA aligns investments with each state's economic development goals and per Congressional mandate DRA must invest 50 percent of its appropriation into basic public infrastructure and transportation infrastructure as well as 75 percent of our allotment in economically distressed areas. The infrastructure projects include water and sewer improvements, road infrastructure and small inland port maintenance and expansion. One example in my home state in Helena, Arkansas where DRA wrong with public and private partners repaired a damaged, closed rail line servicing the Helena Harbor. As of this week this port is open again and servicing 40 cars per day. This investment immediately saved jobs and has since seen expansion from the private sector. One CEO made the statement the rail was the critical factor in us locating in Helena, Arkansas. Much of DRA's foot print is comprised primarily of small, rural communities. Often Delta stakeholders voice their concerns regarding the difficulty of navigating federal resources from DRA's larger counterparts and do not have the capacity to develop and fund projects on their own. DRA addressees these concerns by investing in and supporting our most rural communities. From 2010 through 2016 59 percent of DRA's funds were invested into communities with a population of 10,000 or less. One of the benefits of DRA is its ability to move quickly to assist the needs of the Delta communities and the private industry. With a rolling application timeline DRA has helped Arkansas as well as other Delta states successfully close deals that create jobs and grow our states economies. DRA's flexibility to help us ensure necessary public safety in the aftermath and recovery of natural disasters. Recently DRA made an emergency investment last month in Higginson, Arkansas. A small rural community of 600 people was hit by a tornado and suffered major damage to their sewer plant. DRA provided $23,000 to assist with the restoration for these facilities. Lastly I would like to emphasize the importance of the Delta Leadership Institute. This unique program which I had the honor to graduate from in 2013 is training the types of community leaders that are running our region's communities often as a part-time job with very few resources. DLI is growing the knowledge, skill set and dynamic network of leaders that our communities and region need to compete in the U.S. as well as globally. I can personally attest that going through this program has helped me in my role at the Arkansas Economic Development Commission. I hope the information I have provided today speaks to the overwhelming value of the DRA investments throughout the Delta region. DRA's primary goal is to help bring economic prosperity to one of the most distressed areas in the country and it is a successful model of public-private partnerships. Thank you for the opportunity to provide this testimony and I urge you to continue funding DRA so that it can continue to make strategic investments in infrastructure, businesses, and families in the Delta region. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you for being here. If you guys would like to jump up to the table again, if you could because I am sure we will have a question. And go ahead and stay there. Pull up another chair because I do want to talk about these for just a second, if you could. And I do not want you to take this as a criticism or anything else. I know what you do is important work. In this bill, I guess in the Omnibus that we are going to be voting on in just a few minutes, or at least the rule for it, there is also the Denali Regional Commission, $15 million; $25 million for the Delta Regional Commission; 152 million for the Appalachian Regional Commission or Association, whatever it is. And I understand both the need and why we are doing this or why it has been started. And I know why--you do not have to be a brain surgeon to figure out why they have been going on. Hobson tried to get rid of these for a number of years when I was first on this committee when he was the chairman of the committee. All of the circumstances you just described exist throughout this country. You go to Great Lakes and the loss of the manufacturing jobs up there. Go to Detroit and look at the unemployment. Look at the problems that exist there. You go to the Intermountain West, those problems exist there. And I am not suggesting that we eliminate these things. What I am suggesting is that somehow there needs to be some equity across this country. There is no Intermountain Regional Commission. There is no Great Lakes Regional Commission. There is no Heartland of America Regional Commission. And all of the problems that you describe do exist throughout the country. When you talk about a dental clinic, I can take you to the need for dentistry throughout Idaho. Have you ever been on an Indian Reservation? Ethnic population with the highest rate of cavities around and no access, in many cases, to dentists. These things exist everywhere. Why should we fund these and nothing else? Anybody care to---- Ms. Dunahoo. I would love to answer and I know time is of the essence, so we could certainly provide a written statement with further information. But I can give you a little bit of information and let you know that I have been in my position for a year and a half now. And coming new into my position I asked many of those same questions even though I had utilized the program for years, particularly in Kentucky when we look at the dollar amount of the investment that has gone into the Appalachian region and why have we not seen more benefit than we have? And then the next question became are we truly lower than the rest of the Nation? So I began looking at income levels, per capita income. And we are indeed below the rest of the Nation in our 38 stressed counties that I mentioned earlier. We have had a downturn in the economy, but in our office we also manage Coal Severance and the Coal Program. And I can tell you in the year that coal was the greatest in severance dollars received by the Commonwealth of Kentucky, we received $313 million in severance dollars, that our counties were still the poorest in the Nation. So that is a systematic problem. And the loss of one industry, while it was traumatic, very traumatic to our people, we cannot even hope to be as good as we were in the good old days because we were still the poorest in the Nation. So when we have a situation such as that and then we immediately begin to wean the program, the effects are devastating. So what we need is to have some time to work through, as I said in my statement, to look in the mirror, figure out what we can do, find ways to move forward to develop our region. We have had great success in the last year and a half. We still obviously have a way to go and that is what we need to be able to do. Mr. Simpson. Well, and I appreciate that. I mean, as I said, I am not trying to criticize anything. I am also cognizant of the fact that I have been around for a while and I have seen how government programs work. And when you talk about ending the need for a program, that is a fantasy. That never ends. It goes on and it will go on and you will find new needs for it. It is just human nature. It is what we do. It is what I do in Idaho, you know. But I find it kind of fascinating how we kind of select areas and decide that we are going to--and it is because of the congressmen at the time or the senators at the time that establish this. I mean, I have got to tell you, in all honesty, the reason that Chairman Hobson used to try to get rid of them because he wanted to get rid of the Denali Commission and Senator Stevens was chairman of the full Appropriations in the Senate and he just wanted to kind of stick him in the side. He did not want to get rid of it, but that was--but, you know, I came across last year within the Department of Energy where at energy sites across the country they can charge what are called PILT payments, payment in lieu of taxes, for the energy sites. And it is voluntary between the local energy department and that site. And in some areas, communities are making pretty good money on PILT payments and in others they are not even being paid. And I told them this year we are either going to do it uniformly or we are not going to do it at all because it needs to be fairer. And that is kind of what I am looking at here. How do you address those same needs that you have and the rest of the country, and maybe it is through something like this. Maybe it is through something like this nationally, I do not know. But it is a discussion that we all ought to have because I will tell you that these programs are in danger, I think. In reducing times, budgets being reduced in the future, I can see the pressure to unfund these programs, essentially take the savings out of that. And so we better have a justification for them. And you better be able to make that justification to Marcy's constituents and to my constituents and the rest of this Congress. That is really all I---- Ms. Kaptur. Thank you, Mr. Chairman. Our chairman is someone that one can work with on every issue, but I hear what he is saying. And I want to thank you, also, for your compelling testimony. And as women, I would say, also, you are dealing with some of the most intractable issues in terms of economic change. I was very impressed, Ms. Collins, with some numbers you provided for the region. Appalachia, I mean, just think about this, since 2000 has lost, counting manufacturing jobs and coal jobs, over 655,000 jobs. Six hundred and fifty-five thousand jobs. That is a neutron bomb over a region. And I will tell you, we have a struggle here, and the chairman puts his finger on it, you know, for regional equity and so forth with community adjustment when these massive job losses occur. I complained about--I am from northern Ohio, but we have Appalachia in southern Ohio, and just to walk through some of those communities and to see what they are enduring, most people in this Capitol will never get there. I just saw the movie ``Hacksaw Ridge'', and I think Desmond Doss, he came from Lynchburg, Virginia. And though that is not directly in, you know, the states in which you live, I thought that is the spirit you were talking about. America really does not understand that sometimes. And so we do not have a flexible system to target. We do not have any program really that deals with this kind of economic transformation. I saw where a solar company is going to be investing now in I do not know if it is Kentucky or West Virginia, I read, for coal adjustment and moving from a coal community to a major solar investment. I thought, yeah, okay. But we saw them up in auto and steel country. As I sit here and listen to you, one of my communities is undergoing hundreds and hundreds and hundreds of job terminations because of dumped Korean steel and Chinese steel, and we cannot stop it. And it is not that the workers there did not try their mightiest, but we cannot get the government of the United States to respond fast enough to what is occurring there. You know, there will be a 2- or 3-year trade proceeding and it will eventually find that, yes, in fact, these people were hurt. But by then, they are devastated, their communities are devastated, and we do not have quickly flexible response mechanisms for economic readjustment in many of these places. So I guess I would say, Mr. Chairman, in answer to your plea, maybe they are representing some of the first ways America tried to deal with economic adjustment, but we do not have a very good solution. Mr. Simpson. Well, as I said, Marcy, and I agree with your comments, it is a tough--and we are voting right now, by the way. Ms. Kaptur. Are we? Oh. Mr. Simpson. But it is a difficult issue because I will tell you that the lost coal mining jobs in Appalachia region is no different than the lost timber jobs in Idaho, and they have gone down to where, in my district, we do not have any sawmills left. Hell, I am from Idaho, you know. In the other district there is not very many sawmills left and there used to be sawmills throughout the towns. That was their economic development was a sawmill. So the same thing happens in places and we have got to find a better way to do it than competing against one another. But let me tell you, I do appreciate what you do. It is necessary and we will continue to work with you, but we need to have a broader discussion on how to deal with this. So thank you all for being here and thank you for testifying today. Ms. Dunahoo. Thank you. Mr. Simpson. You bet. Ms. Dunahoo. Thank you both. Mr. Simpson. The hearing is closed. Wednesday, May 24, 2017. UNITED STATES ARMY CORPS OF ENGINEERS (CIVIL WORKS) AND BUREAU OF RECLAMATION WITNESSES DOUG LAMONT, SENIOR OFFICIAL PERFORMING THE DUTIES OF THE ASSISTANT SECRETARY OF THE ARMY (CIVIL WORKS) LIEUTENANT GENERAL TODD SEMONITE, COMMANDING GENERAL AND CHIEF OF ENGINEERS SCOTT J. CAMERON, ACTING ASSISTANT SECRETARY FOR WATER AND SCIENCE, DEPARTMENT OF THE INTERIOR ALAN MIKKELSEN, ACTING COMMISSIONER, BUREAU OF RECLAMATION Mr. Simpson. Good morning. This is our first hearing since the release of the fiscal year 2018 budget request. Although we just received the President's budget yesterday, we begin our oversight hearings today. As we do every year, we will work to understand what is contained within this proposal, and ensure that the fiscal year 2018 Energy and Water Appropriation Bill provides responsible funding for the programs under our jurisdiction. We are here today to look at the fiscal year 2018 budget request for the Civil Works Program for the U.S. Army Corps of Engineers and the Bureau of Reclamation. I would like to welcome our witnesses, Doug Lamont, senior official performing the duties of the Assistant Secretary of the Army for Civil Works; Lieutenant General Todd Semonite, the Commanding General and Chief of Engineers; Scott Cameron, the Acting Assistant Secretary for Water and Science of the Department of Interior; and Alan Mikkelsen, the Acting Commissioner for the Bureau of Reclamation. The Bureau of Reclamation and Corps' Civil Works Programs include a wide variety of water resources and power activities essential to the public safety, economic, and environmental goals of our Nation. This committee works hard each year to build an appropriations bill that provides strong support for these programs, and that strikes a good balance across mission areas. The omnibus included $1.3 billion for the Bureau of Reclamation and provided more than $6 billion to the Corps. Funding within the Corps met the new Harbor Maintenance Trust Fund's targets established under WRDA, and made full use of the estimated annual revenue of the Inland Waterway Trust Fund. Congress clearly recognizes the importance of both of these programs. While I was disappointed to see that the budget request has proposed to cut the Corps' funding, the good news is that this is the better Corps number than we saw during the last several years of the Obama administration. I am hopeful that this is an indication that this administration recognizes the importance of this infrastructure work. I look forward to hearing from each of you on this budget request and learning more about the priorities included in this proposal, and how you plan to address the various challenges facing your agencies. Again, I would like to welcome our witnesses to the subcommittee. I would ask all of you to please ensure that the hearing record, questions for the record, and any supporting information requested by the subcommittee are delivered in final form to us no later than 4 weeks from the time you receive them. Members who have additional questions for the record will have until the close of business Friday to provide them to the subcommittee office. With that, I'll turn to Mr. Aguilar for an opening statement, if he has one. Mr. Aguilar. Thank you, Mr. Chairman. I want to thank the witnesses for appearing today. Unfortunately, Ms. Kaptur had another obligation. I am happy to be here, looking forward to the exchange that we are going to have on these important, vital programs, and we will do our best to use the process of questions for the record as well for those members who are not attending. Thank you so much. Mr. Simpson. And let me just say that this is--you are going to see members coming in and out today because there are several hearings going on in various committees. In fact, I have got to step out to ask the Secretary of Education a couple of questions when that hearing starts over there for a few minutes. So, you will see members coming and going to a variety of hearings. Mr. Lamont, I understand you are first. Mr. Lamont. Good morning, sir. My name is Douglas Lamont. I am the senior official performing the duties of the Assistant Secretary of the Army for Civil Works. I must say that this has been an extraordinary year and I want to apologize to the Chair and to the committee for last-minute details on release of the President's budget and also on the work plan. We will work with the committee. We will work with Chairman Simpson here to ensure that General Semonite and I provide you the information that you require. I want to thank you for the opportunity to present the President's budget for Fiscal Year 2018. The Fiscal Year 18's Civil Works budget reflects the Administration's priority through targeted investments that will reduce the risk of flood impacts to communities, facilitate waterborne transportation, restore aquatic ecosystems, and support American jobs. The budget emphasizes maintaining the water resources infrastructure that the Corps owns and manages, and on finding innovative ways to rehab it and hand it over to others, or retire it. Here are some funding highlights. The 2018 Civil Works budget provides $5.002 billion in gross discretionary appropriations for the Army Civil Works Program, focusing on investments that will yield high economic and environmental returns in order to address significant risk to public safety. The budget focuses on funding our three major mission areas and allocates 42 percent to commercial navigation, 20 percent to flood and storm damage reduction projects, and 7 percent to aquatic ecosystem restoration. Other sound investments include allocating $247 million to hydropower, $118 million to clean up sites contaminated during the early years of the Nation's nuclear weapons program, and $200 million for the Corps' regulatory activities. The budget does not propose any new starts, choosing to focus instead on advancing ongoing work and maintaining our existing infrastructure. It funds 26 feasibility studies to completion, and funds one construction project to completion. The budget funds inland waterway capital investments of $175 million for the ongoing work at Olmsted Locks and Dam of which $26 million will be derived from the Inland Waterways Trust Fund. The budget also includes $299 million, including $34 million for the dam safety remaining item, for the overall dam safety program. This funding will enable the Corps to evaluate and implement effective risk reduction strategies and measures at dams where needed. The budget prioritizes funding to operate and maintain water resources infrastructure by providing $3.1 billion in the Operations and Maintenance account, and $142 million for operation and maintenance in the Mississippi River and Tributaries account. Funding for maintaining commercial navigation, flood and storm damage reduction, and hydropower projects are informed by assessments of a risk-based nature on project condition and consequences of failure. The budget includes $765 million for operation maintenance of inland navigation projects and $654 million for operation maintenance of flood risk management projects, excluding remaining items. These funding levels will enable a continued reduction of unscheduled lock closure due to preventable mechanical breakdowns and reduce risk at flood risk management projects. The budget provides $965 million from the Harbor Maintenance Trust Fund to maintain coastal channels and related work, which is the highest amount ever budgeted. The budget supports a Corps program that has a diverse set of tools and approaches to working with local communities, whether that means funding projects with our cost-sharing partners or providing planning assistance and technical assistance to help our communities make better informed decisions. Other funding Corps efforts include mitigation of impacts to fish on the Columbia River Basin, and priority work in the Upper Mississippi River and Missouri Rivers. I look forward to working with the committee to advance the Corps' Army Civil Works Program. Thank you, sir. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Lieutenant General. General Semonite. Chairman Simpson, Ranking Member Kaptur, and distinguished members of the subcommittee, I am Lieutenant General Todd Semonite, Commanding General of the Corps of Engineers and 54th Chief of Engineers. I am honored to be here today accompanied by Mr. Lamont to provide testimony on the President's fiscal year 2018 budget for the Civil Works Program for the United States Army Corps of Engineers. I have been in command of the Corps for just over a year, and I continue to be amazed by the breadth and complexity of the Civil Works Program, as well as the expertise and dedication of the professionals that work in our organization. While this is my first time appearing before this subcommittee, I have had the opportunity to work with a number of you individually, and I look forward to continuing to build our relationship during my tenure as Chief of Engineers. It is my belief that the credibility of the Corps is measured by our ability to deliver results that are on time, on budget, and of exceptional quality. To do this and to maintain our status as a world-class organization now and into the future we are focusing on three fundamentals we call strengthen our foundation, deliver the program, and achieve our vision. I want to give you some highlights of my fundamentals. First, as with any structure, our foundation must be our strength, the bedrock upon which our present rests and our future is built. For the Corps, this means having the discipline to accomplish routine tasks to a high standard. It means demonstrating that we are reliable and competent partners, assisting in shared efforts to be responsible stewards of the Nation's water resources. We are committed to transform our processes, invest in the technical competency of our most valued asset, and that is our people, and to be collaborative and transparent. Our strength is validated by earning trust in all we do, by demonstrating technical expertise, competence, and professionalism across our organization. We earn our credibility, our reputation, and our value by delivering the program, our second big fundamental. This is our lifeblood. This is our passion. This is our mission and this is our number one priority. In all that we do we strive to ensure that cost, timelines, and expected quality are understood upfront and successfully accomplished in the end. And finally, in order to achieve our vision, we endeavor to anticipate the conditions, challenges, and opportunities in an uncertain future by taking prudent, logical, and decisive steps today to prepare. We do this by implementing strategic transformation within the Corps, continually pursuing four goals outlined within our campaign plan, and an aim point of 2025. Our first campaign goal is to continue to work across the globe with a presence in more than 100 countries supporting national security and the combatant commanders in civil works, military missions, and water resource research and development expertise. We are proud to serve this great Nation and our fellow citizens, and we are proud of the work the Corps does to be able to support America's foreign policy. Our second major goal is to continue to work at making the Corps more efficient and effective while delivering integrated water resource solutions for national missions and to address infrastructure challenges. This involves modernizing the project planning process, enhancing budget development for a more holistic outcome, and making better risk-informed investment decisions, as well as improving delivery methodology. Our third major goal is to continue to be proactive in reducing disaster risk and responding to disasters under the national response and recovery support framework, as well as within our authorities for flood risk management. I am very proud of our team for the work we do with FEMA and our fellow partners, as well as with State and local agencies in this area. And our fourth and final goal is preparing for tomorrow, which focuses on our people and ensuring we have a pipeline of the best engineering and technical expertise, as well as a strong workforce development and talent management program. We continue to tailor development programs to employ aspirations, to retain talent, and insulate culture that embraces a career of service. In closing, I would offer that our excellence demands commitment of every Corps employee. As Chief of Engineers I am striving to develop what General Shinseki, former Army Chief of Staff, called irreversible momentum towards being a world-class organization. World class means that the Corps must continue to be able to engineer solutions for the Nation's toughest challenge. That is our vision. You have my commitment that the teammates of the Corps have a passion to achieve that vision. Thank you for allowing me the time to be able to address the committee today. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you. Mr. Cameron. Mr. Cameron. Thank you, Mr. Chairman, members of the subcommittee. I am pleased to discuss with you today the President's budget request, the Bureau of Reclamation, and the Central Utah Project Completion Act. My name is Scott Cameron. I'm the Acting Assistant Secretary of the Interior for Water and Science. Secretary Zinke appreciates the subcommittee's ongoing support of our programs. The overall Department of the Interior's 2018 budget request is $11.7 billion, which emphasizes Interior's crucial role in promoting economic growth across America while also protecting the Nation's natural resources and cultural heritage, furthering the America First national energy goals, providing scientific information for responsibly managing our resources and energy development, and honoring our trust responsibility to Native American Tribes. The Department's diverse mission affects the lives of all Americans. For example, in 2016, Interior's programs were associated with an estimated $250 billion in economic output, and supported 1.6 million jobs and activities that included outdoor recreation and tourism, energy development, grazing, and timber harvesting. The Bureau of Reclamation's activities, including recreation, contribute over $48.1 billion in economic activity and support over 388,000 jobs each year. The Department, primarily through the Bureau of Reclamation, works with States, Tribes, local governments, and nongovernmental organizations to pursue a sustainable water supply for the West by providing Federal leadership and assistance on the efficient use of water. The 2018 budget continues these efforts to address the challenges of water availability. Interior's $1.1 billion budget request for Reclamation invests in our water and power infrastructure, facilitating the delivery of water to 31 million people in the West. In addition, our programs focus on the protection and restoration of aquatic and riparian environments influenced by our facilities and operations. It is critical that Reclamation continues to invest in ecosystem restoration if we are to continue to supply water and power reliably. This budget also continues to strengthen our Tribal Nations by implementing Indian water rights settlements. We are proposing that Reclamation invest $151 million in Fiscal Year 2018 toward fulfillment of this Indian trust responsibility. These activities include projects and actions to implement Indian water rights settlements, provide technical assistance to Tribes, and for ecosystem restoration. Interior's budget furthers our commitment to developing domestic energy resources in order to make America stronger and boost the Nation's economy. Hydropower is a renewable and reliable resource providing clean energy to the Western United States. It is the Nation's largest renewable energy resource, and the Bureau of Reclamation is the second largest producer of hydropower in the United States, second only to my colleagues to my right. We support the President's effort to create a leaner, more efficient government, and the Bureau of Reclamation will be actively involved in bringing forward the most promising ideas to improve government effectiveness and efficiency, and to spur economic growth. For example, Reclamation is developing a legislative proposal to facilitate the transfer of title of certain Reclamation projects and facilities when such transfers are beneficial to all parties. While Reclamation has engaged in efforts related to title transfer in the past on a case-by-case basis, this broader initiative will go further to facilitate greater local control of water infrastructure to allow local water managers to make their own decisions to improve water management at the local level while allowing Reclamation to focus management efforts on larger projects with a greater Federal nexus. As part of this effort, Reclamation will engage with water users to identify projects and facilities that may be good candidates for such a transfer. Finally, Interior's budget request includes the Central Utah Project Completion Act Office, which falls under the direct jurisdiction of the Assistant Secretary for Water and Science at the direction of Congress a number of years ago. The 2018 budget for this office is $9 million. Of this amount, $4.8 million will be available for planning and construction activities administered by the Central Utah Water Conservancy District, continuing our partnership and the ongoing construction of the Utah Lake System's facilities. In addition, about $900,000 will be transferred to the Utah Reclamation, Mitigation, and Conservation account for use by the Utah Reclamation, Mitigation, and Conservation Commission. The 2018 budget also includes Interior's required program oversight activities and Endangered Species Recovery Program implementation through the Department's CUPCA Office. The Central Utah Project provides 62,000 acre feet of water for irrigation of over 30,000 acres, and 100,000 acre feet for municipal and industrial purposes. This water will help address the water demands of the growing population in the Wasatch Front, one of the fastest growing areas in the Nation. Thank you, again, for the opportunity to explain the President's budget request of the Bureau of Reclamation. I would be pleased to answer any questions the subcommittee might have at the appropriate time. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Mikkelsen. Thank you, Mr. Chairman, ranking members, and members of the subcommittee for the opportunity to discuss with you the President's budget for the Bureau of Reclamation. I am Acting Commissioner Alan Mikkelsen. Reclamation's Fiscal Year 2018 budget allocates funds to projects and programs based on objective, performance-based criteria. This allows us to most effectively administer Reclamation's responsibilities for our water and power infrastructure in the West. By doing so, the Bureau has become a leader in efforts to improve Western water management, confront growing imbalances in water supply and demand, and address past environmental harms. Our budget continues to emphasize the following principles. First, shared responsibility through collaborative partnerships with non-federal partners. Second, merit-based funding through the awarding of grants and contracts based on published criteria. The selection of awards is guided by high-quality, evidence-based research and performance measures. And third, the importance of increased storage capacity. The Bureau recognizes the important goal of increasing and improving storage where it is both feasible and where there is significant stakeholder support. Let me take a moment to provide you with an understanding of some of the exciting projects that we have under way. In our Great Plains Region, home to Representatives Fortenberry and Granger, we continue collaborating with our stakeholders to manage, develop, and protect water resources throughout the region, including the development of several rural water systems. Reclamation is also coordinating with numerous local entities to improve drought resiliency. In the Upper Colorado Region, we request funding for two Indian water rights settlement projects: the Navajo-Gallup Water Supply Project and the Aamodt Litigation Settlement. These settlements provide permanent water supplies by building and improving water systems for sustainable municipal, industrial, and domestic water supplies in these communities. Of course the Upper Colorado is the home of Glen Canyon Dam and beautiful Lake Powell. The Lower Colorado Region encompasses the Lower Colorado River Basin and is home to the Hoover Dam and includes the districts of Representatives Calvert, Roybal-Allard, and Mr. Aguilar. Given the ongoing drought in the Southwest, the priority focus here is the annual delivery of 7\1/2\ million acre feet of water to California, Arizona, and Nevada, with another 1.5 million acre feet to Mexico. Nearly 80 percent of this region's budget is either paid for directly by our partners or through the sale of hydropower generation. In addition to struggling with the worst drought in more than 100 years, the region is also looking at additional ways to assist California with their implementation of other important water irrigation and conservation initiatives. The Mid-Pacific Region has suffered from its own unique set of drought-related problems. Recent precipitation has alleviated some of the emergency water supply issues, but one good year, I want to emphasize, will not solve all problems related to a multiyear drought. Additionally, recent heavy rains have caused flooding concerns and have highlighted the importance of maintaining Reclamation's infrastructure and continuing feasibility studies for additional storage. The region works with a diverse group of stakeholders to implement water management solutions with a goal of balancing human and environmental needs for water. Finally there is the Pacific Northwest Region, home to Grand Coulee Dam, one of the largest hydropower facilities in the world. In addition to yourself, Mr. Chairman, this region is represented by Representatives Herrera Beutler and Mr. Newhouse. Our focus here for the coming year will be on the Boise River Feasibility Study. That research is designed to increase storage opportunities at the Anderson Ranch, Arrow Rock, and Lucky Peak Dams. It will guide us as we continue construction of the Cle Elum fish passage as part of the larger Yakima integrated plan. We will continue with the design and implementation activities at the Lewiston Orchards Water Exchange. And finally, we will implement multiple biological opinion actions as part of the Columbia and Snake River salmon recovery programs operating under the Federal Columbia River power system. 2018 promises to be another exciting year for Reclamation. I again thank the committee and am prepared to answer any questions you may have about the Bureau's Fiscal Year 2018 budget request. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you all for your testimony and, again, thank you for being here today. Just to get a bit of housekeeping out of the way, first, Mr. Lamont, can you tell the committee when we can expect to receive the fiscal year 2018 budget justification materials, including the J sheets? Mr. Lamont. Yes, Mr. Chairman. We are working diligently to get those to you as soon as possible. I regret that we are in a position that we have not been able to get them to you. We are working diligently with the Corps and with my staff and obviously with the Administration to get these cleared and get them to you as soon as possible. You have my commitment to do that. Mr. Simpson. Any idea what length of time we are looking at? Mr. Lamont. We are hoping, if you will allow us, to provide you the first batch next week. Mr. Simpson. Okay, thank you. For both the Corps and the Bureau, the Trump administration as well as the former Obama administration has promoted alternative financing as a tool for infrastructure development. This committee has been supportive of exploring this option but has also made it clear that Federal policies should be fair and equitable. We should not operate a system whereby a wealthy non-Federal sponsor receives a disproportionate share of Federal assistance. For all four of you, do you agree that we should avoid policies that allow non-Federal sponsors to buy their way to the front of the Federal funding line and how have your agencies been taking these equity concerns into consideration as you explore alternative financing options? Go ahead. Mr. Lamont. Mr. Chairman, I will take that first. Clearly, with constrained Federal resources we are looking at every opportunity to partner in a cost-shared environment not only with our studies but obviously with our construction program. There is no preferential treatment to the project sponsors that may have resources that others may not have. We want to make sure that we are looking clearly at the need for the project and that we can defend it in addition to economics, but also from a public safety and health standpoint. General Semonite. Mr. Chairman, I will just add that the fiscal year 2017 appropriations bill specifically says that we need policy in this area. We are a big advocate of P3s; we think there is a lot of merit here. On the other hand, we would like to be able to make sure that we understand what those rules are and how do we do this in the right way to avoid exactly what you are asking. So right now we are working with Mr. Lamont's office, to continue to be able to figure out how can we put some policy in effect. That language was very specific. Other than Fargo Moorhead, we are basically on a hold right now until that policy is done and we would like to work throughout the Administration and with your staff to continue to figure out what should that policy look like. Mr. Simpson. Appreciate that. Mr. Cameron. Mr. Chairman, fundamentally, it is the technical and economic viability of a project they need to control, so we look at those aspects certainly first and foremost. We are also, much like the Corps, promoting public- private partnerships (P3). In fact, on May 9 in Denver, we held a daylong session with an overflow crowd of I think more than 200 individuals from a wide variety of sectors, who are interested in having conversations with us about public-private partnerships and, you know, we look forward to leveraging everyone's dollars to move forward on good projects for the country. Mr. Mikkelsen. And as part of the P3 conference that we held in Denver, in conversations with people on sidebars, we also came to the understanding and realization that we have some folks out there, like you are talking about, that have access to private financing. And we would like to actually promote those opportunities for those particular people as much as possible so it actually frees money up for those people who may not have those same income streams or those opportunities for financing. Mr. Simpson. Thank you. And I agree with you, General. We need to develop a policy in this area because otherwise, while I am very supportive of P3s and attracting private funding to some of these opportunities and for infrastructure projects and stuff like that, if the people that have those resources available move to the front of the line, it would be devastating I think across the country and a bad policy. So we need to sit down and figure out how we are going to do this and how we are going to include that, those opportunities. For the Corps, over the past several years the committee has worked to increase funding for the Corps to supplement inadequate budget requests. Congressional intent has been for the agency to use these funds for additional work in the year provided on a broad array of projects, not to forward fund fiscal--figure fiscal year needs of a limited number of projects. Do you expect to make any allocations of the fiscal year 2017 funds that will not be obligated by the end of this year? Mr. Lamont. Mr. Chairman, we have been putting together the work plan. We are looking at what we could obligate and what we could do for the remainder of the fiscal year. There is the possibility there could be funds that could slip into the next fiscal year, but that was not our intent, to focus on prefunding, if you will, for '18. Mr. Simpson. But you were going to try to use those funds in this fiscal year to the extent you can? Mr. Lamont. Yes, sir. Mr. Simpson. Okay. As you are all well aware, invasive species can cause significant economic and environmental damage. In the Western United States, the spread of quagga and zebra mussels are of particular concern. Can you please discuss the ongoing efforts at each agency to address the concerns and prevent the spread of these invasive species? Mr. Cameron. I will start off from the Interior Department's perspective. Secretary Zinke is very personally aware, given his own experience in Montana, of the risk of invasive species, both aquatic such as zebra and quagga mussels while also forest insect pests and in rangelands weeds as well. We, early in the Administration, heard from Governor Otter in Idaho expressing his great concern about the Columbia River Basin potentially being infected by zebra and quagga mussels. We have been working very closely with the Western Governors Association and those Pacific Northwest governors' offices to cooperate with the Corps, with our sister Federal agencies, and with the State governments in an effort to keep zebra and quagga mussels out of the Columbia River Basin. Regional estimates are that it would represent about a half-a-billion-dollar annual hit to the Pacific Northwest economy, on par with the damage that they have done in the Great Lakes where zebra and quagga mussels fully infest the region. The Secretary is one of the three co-chairs of the National Invasive Species Council along with the Secretary of Agriculture and the Secretary of Commerce. We actually plan on having the first meeting in a decade of the National Invasive Species Council in conjunction with the Western Governors Association meeting in Whitefish, Montana, on June 28, to talk about regional efforts in collaboration. More specifically, the Bureau of Reclamation's budget includes a four-and-a-half-million-dollar increase to try to protect the Columbia River Basin, realizing that some of the best ways to do that are to keep the mussels from moving north out of Lake Mead or Lake Powell or Lake Havasu, for instance. So the Department's budget as a whole exceeds $100 million for invasive species. We recognize that it is a significant ecological issue. More than 40 percent of our endangered species are endangered because some invasive has done something to them, for instance. So I appreciate the question, Mr. Simpson, and look forward to working with you and all members of the subcommittee to address this significant national problem. General Semonite. Chairman Simpson, really the accolades here go to the Department of Interior and the States for the great work we have done. We are just in support and this is mainly a program for watercraft inspection. Last year we had $3.75 million in it. This year there is $5 million to be able to make sure that we have water inspection stations in the States of Idaho, Montana, Washington, Wyoming, and Oregon. Those stations are up and running. The first one turned on in February. They came on from March to May, and this is the ability to be able to get down and check the boats and be able to make sure that we are doing every single thing preventative we can so we do not have a problem down the road. We do not see any problems. We are very, very strong supporters of that program. Mr. Simpson. We do have, those are inspection stations, but we do have the wash stations installed and so forth at Lake Mead and---- General Semonite. Yes, sir. Mr. Simpson. Okay. Mr. Aguilar. Mr. Aguilar. Thank you, Mr. Chairman. General, you talked in your testimony about modernization and I wanted to shift a little bit to some local permitting. Any modification, as you know, to facilities constructed by the Corps requires a 408 permit. The county I live in, San Bernardino County, currently has thirty 408 permits submitted to the Corps. The vast majority of these are related to projects from cities and developers such as storm drain connections, bridge widening, utility lines. That has taken serval months for these permits. What type of thought can the Corps give to streamlining the process and making it a little bit more simpler for something like a storm drain connection that was planned in the design of the facility? General Semonite. Representative Aguilar, great question. We are committed to try to figure out how we can continue to push delegations down to be able to streamline this more. The challenge you have if you push everything down to the lowest level, there is some chance that you might have people making different decisions and we could be accused of not necessarily being consistent. If you retain everything at the highest level, then obviously everything is going to take an awful long time. So where is the sweet spot of how much you delegate down? Right now we have five major issues we look at in 408s. We have already delegated three of those back down to either Division Commanders or District Commanders, and our staff is committed to continue to figure out where else can we continue to delegate. We also have a special focus now on how long does it take to do some of those 408s. Some, as you might imagine, might have national precedent, so those are the ones we have to keep at Headquarters, but you have my commitment to continue to look across the board on how we can empower, delegate, and set up our subordinates to be able to work this faster, not just in 408s, but the entire regulatory program. Our regulations and our permitting are taking too long and we have got to figure out how to continue to be able to support the taxpayers of getting those decisions earlier. Mr. Aguilar. When it comes to 404 permits for you or Mr. Lamont, has the Corps looked at exempting maintenance work on constructed facilities that are maintained by local agencies needing 404s as identified as necessary during Corps inspection process? General Semonite. Sir, I do not know the exact answer to that, but I would love to get with you and figure out exactly where that applies and then come back and have my team lay out the 404 process. The 404s are other ones we are looking at continuing to try to expedite, but I am not sure exactly the cause of your question and I want to make sure I get you a good answer. Mr. Aguilar. We can put some more detail and submit it to you as well. General Semonite. Sounds great, sir. Mr. Aguilar. For everyone. Many of the Western States have experienced extreme swings in precipitation recently from severe droughts in the past few years to above average rainfall and snowpack. How does this extreme shift in precipitation affect Corps and Reclamation projects and how have your agencies responded to these circumstances and the funding implications based on that weather? Mr. Cameron. I will take the first shot at that. So there is great deal of regional variability. As you know, Mr. Aguilar, California got a lot of rain this winter. Unfortunately, most of that rain went into the Pacific Ocean. So one of the things that we are talking with the State of California very aggressively about is exploring opportunities for new storage, so that if we are lucky enough in future years to have a wet, rainy winter, we can store more of that water so that it is available for California cities and California's farmers during the summer. In the Colorado Basin, we had a good snowy winter in the northern part of the basin. However, we still have drought conditions in the Colorado and we are working very closely with all the Colorado Basin States on a drought contingency plan, realizing that we cannot assume that next winter will be as snowy in the Rockies as this winter. And it is really important for all the States and the Federal Government to coordinate and move ahead aggressively, domestically and with Mexico, on the drought contingency plan. General Semonite. And, sir, let me follow up on Mr. Cameron's answer. Really three things we are looking at: extreme rainfall, sea level rise, and prolonged droughts. What that is really causing, is for us to be able to go back and look at what are the historic trends. What are we doing to look at our predictive models that are out there and how do we utilize policy tools to be able to make sure that we can continue to be informed to put operational solutions in? We have the ability to be able to do short- or long-term deviations as to how to operate these big systems. We have what is called a Water Control Manual for basically any big river system. We have, you know, very, very deliberate processes for how much water do you let in and out. But exactly what Mr. Cameron said, we must be adaptive to a degree to figure out how can we optimize the ability to be able to take care of water that we do have and continue to be flexible. And if we are so locked into a bureaucracy that says do not change because it is too hard to do that, we must continue to be able to make sure we are responsive based on the needs of the climate conditions. Mr. Aguilar. And, Mr. Chairman, if I could, one year of or a good winter of rain and snow does not necessarily alleviate all of our concerns following some of the worst drought that we have seen in about 160 years. As of mid-May, Lake Mead was 136 feet below full pool and is just under 40 percent full and over the last 10 years its averaged 1,100 feet elevation and it is 20 feet below that right now. That is only 5 feet above our trigger point where we have to start taking actions on our drought contingency plan. Lake Powell is also suffering. It rests at just under 3,600 feet which is 108 feet below full pool. So we are not, we are definitely not, out of the drought cycle or situation, particularly in the Colorado River. Mr. Aguilar. Thank you. Thank you, Mr. Chairman. Mr. Fleischmann. Thank you, sir. Wish to thank each and every one of the panelists today for your testimony. And General Semonite, I thank you so much for your vocal support for critical projects like the Chickamauga Lock, which is in district, and for visiting with me personally and for your commitment. As a matter of fact, I believe you have actually visited the Chick Lock, so I thank you for stepping up in a very short period of time of this prioritization. If I may, sir, Chickamauga Lock is a very important project. It is an integral component of the inland waterways system and it would keep 150,000 trucks off of our roads, keep the cost of shipping of goods low for the many businesses that rely on it, and it is, of course, a very environmentally sound and safe inland waterway transport system that it would support. While I am excited about the ongoing work, I think we have received funds I believe over the past 3 years and I have actually witnessed the progress at new Chick Lock, I am concerned that the fiscal '18 budget does not include full funding for the inland waterway trust fund and the funding would be limited to the Olmsted project in Ohio. That means the Chick Lock is not currently slated to receive the critical funding needed to build on the current momentum. Please explain if you will, sir, the reasoning behind the amount allocated for these projects, sir. Mr. Lamont. Mr. Fleischmann, I will be happy to take that question. Mr. Fleischmann. Yes, sir. Mr. Lamont. I had the opportunity back in late February to actually visit Chickamauga Lock myself. And I understand, as a professional engineer, the situation there, basically a concern with the aging in infrastructure; I think that typifies it around the Nation. To be frank with you, sir, in formulating the President's budget, what we were looking at is the high-performing broad projects, which basically comes down to the benefit-cost ratio being 2.5-to-1 or greater at a 7 percent discount rate. And that has been the criterion within this Administration and prior Administrations. And I would say that it is not only the economics, but I alluded to this earlier with Chairman Simpson, we would need to look at, with each individual case, the condition of the infrastructure and whether there is imminent danger or failure, for example. So, that is the one message I want to deliver, is that it is not based purely on economics, but we would also look, I am talking globally of our infrastructure in the Corps of Engineers, if there is any imminent failure, we want to make sure that we are funded to do the proper rehab. Mr. Fleischmann. Yes, sir. And I am sure you are aware the existing lock is an older, antiquated New Deal structure, and it has had some failures. Actually the Corps has done a very good job in maintaining that. It is like a sick patient. So, I look forward to working with the Corps towards getting a new Chick Lock completed hopefully by 2022 or 2023, and we look forward to working together with you. Mr. Lamont. Yes, sir. I witnessed the deflections with the miter gate and I saw the post-tensioning 10 feet apart, and that is pretty significant. I agree with you. Mr. Fleischmann. Yes, sir. Yes, sir. One follow-up question. I believe one of the reasons it is important that we return to regular order is to provide certainty for critical infrastructure projects, such as the Chickamauga Lock. My question, and either one of the gentlemen can answer this, will the Corps be able to release the funds in time for fiscal '17, so that projects like Chick will be able to provide funds before the contract runs out? Mr. Lamont. Yes, sir. Mr. Fleischmann. Thank you. I appreciate that. At this time I would like to recognize, Mr. Joyce, the gentleman from Ohio, 5 minutes. Mr. Joyce. Thank you, Mr. Chairman. Mr. Lamont and General Semonite, thank you for being here. I have a few questions pertaining to the dredging issue in Northeast Ohio. By way of background, the maintenance of the Cleveland Harbor, which includes the Cuyahoga River shipping channel, is vital to Ohio's and Cleveland's economy and many thousands of good- paying jobs. As is the case at other ports on the Great Lakes, dredged sediment in Cleveland has been placed upland for reasons of sediment quality. That has been the practice for decades. More recent developments include the enactment of the State of Ohio law, which prohibits the placement of dredge material in Lake Erie, effective in 2020. The State's findings that the dredged sediment does not meet State water quality standards and would harm the fishing industry by raising PCB levels in fish, the judgment opinion and order of the U.S. District Court judge in favor of the State's position with respect to fiscal year 2015 dredging, successful efforts by the port to maintain confined disposal facility capacity, and the enactment of Section 1189 in WRDA 2016, pertaining to the Federal standard. Given all of this, I feel strongly that the Army Corps should work with principal stakeholders to craft a long-term solution for upland placement and sediment reuse whenever possible. First of all, the fiscal year 2017 funding level for the Cleveland Harbor is 5.85 million. I see the recently released Civil Works budget calls for 6.2 million for operation and maintenance of the Cleveland Harbor. Is that sufficient funding to dredge the Cleveland shipping channel and complete the upland placement of the dredged material this year? General Semonite. Sir, first of all, I agree with you, we definitely need a long-term solution. We cannot continue to be able to work this way and let the courts make these decisions. We must be able to bring all the people together to figure out what is in the best interest of both the State and the Federal standard. As you know, there is a decision out there. The Corps has not finalized a decision as to what we are going to do with respect to the judge's decision in May. We are still working with the Department of Justice as to what exactly our position is going to be. Once we determine that, then we will have to figure out what the bill is that will be incurred, and then how are we going to be able to care of that bill? Right now in the '17 budget and the '18 budget we have not budgeted money for the judge's decision. We will have to go back in and figure out what happens based on how the Department of Justice and the Corps' litigation continues to play out. I have been on the ground, I have a General Officer now down there working every couple weeks with the district, to get with the port to be able to make sure we can figure out what is in the best interest of the Federal Government and the State government in order to meet those requirements and to be able to continue to be able to work this out. The challenge we could have is that if, in fact, we have a higher standard, that is going to cost more money. Right now the normal way we dispose of dredged material in the Cleveland Harbor costs $9 a cubic foot. If we were to go to an upland placement across the board, the cost is $21. So it is more than twice the amount. We are trying to make sure that we are doing what the Federal regulations require, and so, therefore, do not impose additional costs back on the taxpayers. We are committed to continue to work with you and your team, so to be able to find a consensus here. Mr. Joyce. I appreciate that, but the court order was fairly clear, was it not? General Semonite. Sir, and again, this is where we have to figure out what we are going to do with respect to the court order. We have not made that decision yet. Mr. Joyce. Again, the court order was fairly clear. Was it not, General? General Semonite. It was with specific respect to Cleveland Harbor for the fiscal 2015 dredging year. Mr. Joyce. Okay. General Semonite. It only was a very, very targeted decision. Mr. Joyce. I appreciate that, because it was a limited issue at that time that the court had to consider. Second, I recall that when dredging finally got started last December, only a portion was completed before the weather and equipment brought a halt to the dredging, which finally resumed earlier this spring. What is the timeline for completing the dredging of the Cleveland shipping channel this year? General Semonite. Congressman, I can get back to you with specific details, but my staff has told me that we will meet the December dredging timelines, and we should be able to make the standard that we have communicated to the port that we will continue to come through and have that dredging done by December. Mr. Joyce. Finally, the most recent surveying by the Corps reveals that significantly more sediment will need to be dredged from the river than was anticipated last year. How does the Corps plan to manage the increased load in terms of funding, the actual mechanical dredging process, as well as the CDF storage site? General Semonite. As far as additional funding, if it is the same standard, we will be able to accommodate that in our budget. The challenge will occur if, in fact, there is a higher standard where everything will have to be placed upland. And so I really want to come and work with you to be able to tell you exactly what our numbers are. I have no interest in holding anything back. We will lay this out to you so you know exactly where we are. And a lot of it goes back to the standard that we are applying, which is an EPA and Corps of Engineers Federal standard as to where things should be placed. And that is what we utilize. Mr. Joyce. Well, I appreciate that. And somewhere in the city right now is the CEO of ArcelorMittal, and they cannot be held hostage because they cannot get the ships down to the---- General Semonite. Sir, that is never the intent. We are certainly not going to hold that up. Mr. Joyce. I appreciate that, and I am not saying you are, but, while there is a feud between governmental agencies, they still have, people working and steel to be produced, which is very important activity for the United States. General Semonite. Congressman, the dredging will happen. The question is, where does that dredge material go? That is the only issue. So the people that are using that channel are certainly not going to be held hostage. We will commit to ensure that we are dredging on our timelines, unless there is some natural reason why we cannot dredge. Mr. Joyce. Great. General Semonite. We owe that to you, and the shipping industry has to have some predictability. It is certainly not our intention to cause any kind of confusion that would not allow that predictability. Mr. Joyce. I am not saying you are trying to cause any confusion, I am just trying to clear this up, because governmental agencies should not be the cause of any of these problems. General Semonite. Yes, sir. Mr. Joyce. We need to have everybody work in concert. That is why we have the GLRI, which under Chairman Calvert's authority does so well at making all of the agencies work together. I see I am out of time, Mr. Chairman. I apologize. Mr. Fleischmann. Thank you. The gentleman yields back. I recognize Ms. Herrera Beutler for 5 minutes. Ms. Herrera Beutler. Thank you, Mr. Chairman. All right, this is more specifically for you, General, with regard to biological opinion. Recent district court decisions have significant implications for the Columbia River Federal Power System, affecting my district and actually Mr. Newhouse's and others here. Could you, please, discuss briefly the status of the court ordered buy-up for the Columbia River Federal Power System, and what are the funding implications of this court order? I also have a follow up about NEPA and additional spill to get in here. If you would like I could give them now, and you could hit it all at once. General Semonite. No, if you want to give me your second question first, then I will answer the other one. Ms. Herrera Beutler. The District court order directed a comprehensive environmental review of the operations related to the system. The court and reclamation, along with BPA, are co- leads on this environmental impact statement process. Can you please describe the current status of the effort, the expected schedule for major milestones, as well as funding requirements for each agency? General Semonite. We just closed the comment period. All three agencies are working very, very well together. We received over 400,000 comments, so what we are continuing to work through that judge's order to be able to make sure that we are transparent and we are taking all those pieces back in. I do not have the exact date here, and I will find it in a minute. I think we are right on schedule; it was going to be the end of June of '17, to be able to continue to get a preliminary investigation, and then I think it is December 17 for the final investigation. I will double check and make sure I get you exactly the update of that status. Ms. Herrera Beutler. And let us see, spill, additional spill. The court recently ruled on a motion for injunctive relief ordering the agencies to work with the plaintiffs to develop a plan to implement increased spill in 2018. Can you please provide an update on activities to date? Are there concerns, and what is being done and what can be done to alleviate this issue? And do you know what funding will be necessary to implement these efforts? General Semonite. And Congresswoman, I am not aware of that one, so I am going to have to get back with you on exactly the details of that specific issue. Ms. Herrera Beutler. Well, I mean, it is pretty--the injunctive relief motion was somewhat recent, but it is pretty critical for talking about spring 2018. So, yes, I would love to have an update on that. I mean, we spill a lot as a region. Ratepayers pay a lot to protect those wild runs, but we also expect to rely on that power, and protecting that access and that resource is very important to the folks and me, in the region. I still have a couple minutes, so I am going to move on. Earlier this year, and this is for you, General--you are really important to our way of life as you have noticed; we pay a lot of attention to you all--the District Court ordered to develop a process and a schedule for sharing information on planned capital projects at the four Lower Snake River Dams, in case plaintiffs wanted to file to stop these projects while the NEPA review of operations of the power system is ongoing. Mr. Lamont, this could go for either of you. Has the Corps developed this process, and has the court approved it? If so, please briefly describe what would be required of the Corps. Mr. Lamont. Congresswoman, as General Semonite has indicated, I do not want to misspeak on this one. What we would like to do is work with your staff and understand the concern a little better, and we will get back to your staff immediately. General Semonite. We are definitely very aware of the decisions. The Lower Four Snake Dams: we are tracking exactly what we need to do to be able to lay out what the future conditions of those dams could be. But as to the spill and some of the other issues, I would much rather come and give you exactly where we are on this and lay this out to you and your staff in great detail. Ms. Herrera Beutler. I would appreciate that, in part because we have seen this movie before with regard to requiring basically more of an effort to look at the dams and whether they should be there. And getting this right and being on top of this, each of these questions, these are all going to be used. So, I want to make sure that you are following this very closely, and I would expect a detailed update on this. And I am out of time. So, with that, I thank you, Mr. Chairman. I yield back. Mr. Fleischmann. Thank you. The gentlelady yields back. At this time I would like to recognize Chairman Calvert for 5 minutes. Mr. Calvert. Thank you, Mr. Chairman. There was an incident in 1993 and caused about $22 million in damage to Old Town Temecula in my district. Today, those damages would be much greater. We are in construction with the Corps on a project which will provide 100-year flood protection with the cities of Murrieta and Temecula. Please understand that these populations have quadrupled since the project feasibility study where significant numbers of homeowners, businesses, infrastructure which remain vulnerable to flooding, and we need to address this as soon as possible. To continue construction and keep this project on schedule we need $2 million in fiscal year 2017 continuing construction funds to complete the second reach of phase 2 project, and to complete the LRR. Mr. Lamont, General, can you comment to me what you will include in this fiscal year 2017 funding in your work plan? And we will send the reprogramming request forward as quickly as possible to keep the Murrieta Creek Project on schedule. General Semonite. Congressman, we are very aware of this project and the importance of this. We have spent over $20.4 million on this, and agree that the last $2 million are very important. Right now it is our recommendation that that is funded in the fiscal year 2017 work plan to be able to take care of that $2 million. And there is also that $400,000 to be able to continue to be able to reevaluate the benefit-cost ratio. Obviously Reach 4 is the one that is hard to do here, so that is where we are going to study to see if maybe the economics could make it happen. I have to be honest with you, though, that is probably a stretch on the benefit-cost ratio. Mr. Calvert. I have been working on this since I have been in Congress, 25 years, and I would like to get it done in my lifetime. This is an important project to the region. I think once the LRR is complete, it will prove up that this is a viable project and the cost-benefit ratio is there. Thank you for your answer, and I appreciate you working with me to get at least this reach complete. I also have a Reclamation issue. As you are aware Reclamation has reinitiated consultation with CVP and SWP, smelt and salmon biologic opinions, for operations for those projects. As you know, the recently enacted WIN act requires that Reclamation ensure that any project contractor that desires will be included in the reconsult as described in section 4004. Have any of the contractors made such a request and Reclamation provide assurance that any requesting contractor will be included as an applicant? Mr. Cameron. Mr. Calvert, we have had conversations with a number of the contractors. We are aware of the provision that you just described. We are, in fact, planning a meeting in the next week or two with interested contractors, to hear from them exactly how they would like to participate in these processes going forward. We definitely plan to engage with them much more heavily, and much more substantively than they have had an opportunity in the past under the previous legal environment. Mr. Calvert. Now, we have been waiting in California for a long time to increase our water supply and build more storage, which was referenced just a while ago. Can you update me on the status of the storage feasibility studies, since we started those 20-some years ago, and when will we be finally done with them? Mr. Cameron. As you know, Mr. Calvert, there are several in queue. The feasibility report on raising Shasta was actually delivered to Congress. We are actively exploring cost share partners for the Shasta Project that would cost roughly $1.3 billion, so we would not plan on taking it all out on Mr. Simpson's budget. So we are looking for some cost-sharing partners there. Probably one of the most promising opportunities is the Sites Reservoir, which is north of the delta, as you know. For both the Sites and also the Temperance Flat opportunity on the San Joaquin, there are active consortia of water users in California who are pursuing potential funding through the State water bond that was recently passed. And we are working very closely with those project proponents. Our goal is to make sure they have the information they need when they need it so they can apply for and hopefully secure State water bond funding for those two projects. We are also looking at the Los Vaqueros expansion project. That one is on a somewhat slower track and we are also exploring some changes in the San Luis Reservoir, a number of issues there, both water quality and potential water storage enhancement. It looks like from the State's perspective, Sites and Temperance Flat would appear to be the highest priorities, so we are trying to be responsive to the priorities as defined by the water users in California. Mr. Calvert. Right. Thank you. Just one quick question. This is on Oroville Dam and the issue of safety of dams in general. In February, as you know, Oroville Dam almost crumbled, which would have been a disaster certainly in Northern California. And we are lucky that the dam did not give way. In light of this can you and the Corps and the Bureau talk very quickly about dam safety programs? What assurances can you offer that facilities that are owned and operated by both Reclamation and the Corps are safe? I mean, obviously, nobody saw this on Oroville Dam a year ago. And this, this could have been a complete disaster. General? General Semonite. Sir, I will give you an update. I did testify in the Senate a couple of months ago on dam safety and I got very, very up to speed on our dams. We have 715 dams. I feel very confident that we will be able to continue to address the ones that are the highest risk. We rank our dams one through five. We have a very few that are in the worst category and we are fully funding those to continue to get those dams repaired. We have a few more, maybe 10 or 12, that are actually DSAC Level 2 dams. We continue to be able to rank those high up in our budget. Right now, I think that the main thing is as you talked about safety. It really goes back to the risk out there, and how do we continue to manage that risk, be able to make sure we are either putting more engineering solutions there, or to be able to advise people where that risk is. And a lot of that goes with how do you operate that dam and how much water do you hold? We are committed. We have over 1,500 people that are dam certified safety experts. While Oroville is not a Corps of Engineers dam, we are deeply involved in order to advise and also to learn what could we take from Oroville to make sure we are looking at our dams to be able to take the lessons learned. We are working on a dam in Mosul, Iraq, right now, to try to continue to figure out how to fix dams. Mr. Mikkelsen. Thank you, Mr. Chairman. Very briefly, Reclamation has probably one of the most state-of-the-art facilities for safety of dams work in the world. The Dam Safety Program continues to be one of our highest priorities. We inspect all of our dams, we conduct safety evaluation of existing dams, and then our safety of dams (SOD) program makes sure that those priorities are implemented on a regular basis. We have got about I think, without looking, we have got about $90 million in the budget this year for our Safety of Dams program. And the very first question I asked when I arrived in town was does Reclamation have any Orovilles? And I was assured that we absolutely do not. Mr. Calvert. Thank you. Mr. Fleischmann. Thank you, Mr. Chairman. At this time, I would like to recognize the gentleman from New York, Mr. Serrano, for 5 minutes. Mr. Serrano. Thank you, Mr. Chairman. I am sorry I was late. I was at another hearing, which is the story of our lives. Gentlemen, I wanted to remind you and thank you on behalf of my constituents for the great work you have done on the Bronx River. I usually do not use these hearings to talk about my district, but rather in general about our country and how it affects my district. But it is really incredible, 15, 20 years ago, when you started helping us clean that river up, we found things in there that I cannot mention in public, many illegal things and even a Jeep. And now a beaver has returned and a second beaver returned. I do not know why, but they named the beaver Jose. And so you can figure out for yourself. But I understand that the war continues and it has just become an area that you did not believe you could have inside a city. I mean, with running ways and places on the side, it is just wonderful. Anything new in the budget that speaks to the Bronx River and what the timeline is? General Semonite. I do not have any new information, but we will certainly come and lay this out for you. I am not prepared to talk about the Bronx River today. Mr. Serrano. Okay. General Semonite. I am not aware of any other budget updates. Mr. Serrano. I saw something, but I did not want to tell you I saw it. Mr. Mikkelsen. Sir, I echo General Semonite's situation here. I am not aware of that either, but I will work with the Chief of Engineers to make sure we are working with your staff. Mr. Serrano. Okay. General Semonite. I will tell you, though, sir, when I was a Division Commander at Fort Hamilton back in '06 to '09, we found the first beaver and you and I were here about 7 or 8 years ago, talking about that beaver. So it goes back to the potential. There are a lot of opportunities to be able to continue to make these river systems better across the board, not just for water quality, but for recreation and for economic development. Mr. Serrano. Absolutely, and to our colleagues, the whole story of the beaver, which one of our colleagues knows about, is that a beaver--New York City was a beaver pelt colony in its beginnings, and a beaver had not returned to New York in 200 years until these folks and the community and the folks cleaned up the river. And so it became a major story, National Geographic, the whole thing. And so they now find a second beaver, right. So they tell me to name the beaver. Now, I do not want to be a wise guy and name the beaver, so I tell them, no, why don't you name the beaver to the Bronx Zoo? They put it on the Internet. You know what they named the beaver? Justin Beaver. Yeah. And I lost all my publicity very quickly. General Semonite. Congressman Serrano, there is money in the budget for maintenance. It is not an awful lot, but I will have my staff come lay out to your staff exactly what, not only this year, but long term, how we see the Bronx River, and we will give you a full update. Mr. Serrano. Thank you so much. I do not know if you are familiar with the Cano Martin Pena in Puerto Rico, my other congressional district. And I wanted to congratulate you and the local folks, ENLACE, for the strong efforts in dredging the Cano, which is just a big issue, a monumental issue on the island. When do you expect this project to be completed and what are you asking for to complete it, if you are? Mr. Lamont. Mr. Congressman, preconstruction engineering and design has been initiated and it is continuing. There are no funds in the President's budget for any preconstruction engineering and design right now nationwide. What we are doing is focusing on completing our 16 feasibility studies where there have been funds appropriated over the last 2 fiscal years, and we are focusing also on the continuing construction and completions of our projects. I will work with you sir, on looking at Cano Martin Pena as far as any additional needs, and the potential for any reprogramming that might be needed to move this project along. I understand your concerns and the situation down there. Mr. Serrano. If I heard you correctly, you said there is no new money for these kinds of projects in the President's budget, but you have an opportunity to complete the ones you started already? Is that what you are alluding to? Mr. Lamont. The emphasis is on the prior appropriations that have been made in trying to complete or continue PED nationwide on the projects that would hopefully compete for new start construction consideration in the next budget cycle. Mr. Serrano. All right, thank you. Thank you, Mr. Chairman. Mr. Fleischmann. Thank you, sir. At this time, I would like to recognize the ranking member of this subcommittee, Ms. Kaptur. Ms. Kaptur. Thank you very much, Mr. Chairman, and I apologize for being late for this distinguished panel. I had to testify this morning at the Department of Commerce on a very daunting situation that faces our steel industry and it affects thousands of workers in my State, so I had to be there. I read your testimony, gentlemen. Thank you so much for your service to our country and the great work you do. Each of us can point to successes in our own particular States and regions that you and the Corps have been a part of, so we value your work. I also hope you will be a major player as the President proposes a new infrastructure bill, whatever that is. And I do not agree with Mr. Mulvaney's decision to cut your budget by $1 billion-plus and I am hoping that some of that can be changed as a result of our action and work on the infrastructure bill. It is one of the greatest job creators we could have in this country. I wanted to, also, General Semonite, you talked just briefly referencing a dam in Mosul. I wanted to ask you, would it be a lot of work or could you provide me some information about how the Corps links to other countries around the world in civil works projects. Just a brief summary, for example, I am particularly interested in places that are tender, such as Ukraine, and whether or not there have been any Civil Works agreements, either working with other parts of the military like our State partnership programs. Do you ever link to Guard Civil Works units that are doing work in those places? I do not really understand that set of relationships and I would really like to. Is that a hard thing to produce? General Semonite. Not at all, ma'am. We do this all the time. We are in 110 countries. We work for obviously the ambassadors out there, for Department of State. We work for our combatant commanders, the four-star generals that are actually out there that are warfighters. They give us security cooperation requirements, then we go back out. The Civil Works team may go and do a climate change seminar in China. Right now, we are working in Vietnam to be able to help Vietnam to work in the Mekong Delta, because we know how to do it from Mississippi River. There is money that is actually given to us in the budget, called ``234'' money, a very small amount, but it allows us to be able to take some of the things we have learned in this country with Civil Works and to be able to use that in the interest of diplomatic relations with other countries. We will lay this out. We do this every month on a regular, normal rhythm for the rest of our combatant commanders. We are very proud of what we do in other areas. Ms. Kaptur. I am very, very interested in this, particularly as concerns Ukraine, Lebanon, and Jordan. And so you may not be doing anything there, but if you are, I would like to know what it is and enhance my own understanding. So I thank you very much for mentioning that this morning. I want to associate myself with the questioning and the concerns of Congressman Joyce. Both of us share the Lake Erie coastline in one way or another and the issues of dredging. We have talked about this in many of our private meetings with you. But I really hope that we as a country can come to a place where we look at the beneficial reuse of sediments, whether they are those dredged through your good works or coming at us through various municipal treatment plants, be it water or sewage. The world is starved for organics. We in the Lake Erie region have the largest dredging budget singly because of the topography and the fact God gave me the largest watershed in the entire Great Lakes. So we have challenges. But I keep looking at this and thinking of a private company like Scott's, for example, on steroids to deal with the volumes that we are talking about. And with modern technology, isn't that possible for us to find a market solution to these vast amounts of material? So this is the 21st century. Over at EPA, they have this under the Resource Conservation and Recovery Act, RCRA, they have the authority to try to work on beneficial reuse. Those titles have not been exercised, zero, in several decades. So I am just one of the members out there looking at this amazing resource between Erie, Pennsylvania, as you may know, and Kalamazoo, Michigan, in that big smile. It is the largest landscape industry in the United States of America and they need material all the time. And I am just thinking there has got to be a market solution here that benefits many players. And I appreciate what you have been doing with Cleveland Harbor and trying to crawl our way to some other way of behaving. I do not know if you have a comment on this, but in the area of beneficial reuse, it is really strikingly important in a region like ours. Mr. Lamont. Representative Kaptur, when I met you about a month ago, we talked about this very subject. I agree with you, this is a wasted resource. It is an opportunity, depending on the quality of the resource, for beneficial reuse. If it is a polluted sediment, that might be another consideration. But up and down our coasts, we have heard from a number of project sponsors asking while you are dredging your harbors, is there the opportunity to put sand on the beach if it is of suitable quality? Now, that is not exactly your issue, but in your district, and certainly the sediment relative to the landscaping industry, there is a potential opportunity, I agree. We have looked into our existing authorities, if there is an opportunity, for example, hypothetically, the dredgers would want to partner with the landscape industry or nursery industry and then partner with the State and the State could partner with the Corps of Engineers to maybe have a win-win situation here. General Semonite. And just to add on to that, ma'am, WRDA 2016 directed us to do 10 pilots in this area. We are very excited about those pilots. We have gotten letters in from different States and we are going to make a decision by the end of '17. We are going to have a series of webinars to discuss the criteria, how are we going to decide what the pilots will be. We are going to be very, very open and transparent. But these are great opportunities to do exactly what we are doing. I am violently agreeing with you because we must figure out how we can use that material beneficially to save all of us money. We are doing a pilot right now in Toledo that is working very well. We want to be able to figure out how we can save taxpayers money and maybe even get public interest in this so we can then empty some of these areas that are full of dredge material over the years. Ms. Kaptur. Thank you for your aggressive leadership on this, General. We truly, if there is some way I can help, please let us know, and I know Mr. Joyce would feel that same way. Am I out of time? Mr. Fleischmann. I would be glad to let you ask another question, sure. Ms. Kaptur. Thank you very much, Mr. Chairman. You know, I am going to go to the Asian carp and we do not want this critter in our Great Lakes, $7 billion fishery. And when we last met, Mr. Lamont and I, thank you for meeting with us, you indicated you are waiting for a new Assistant Secretary for Civil Works to be confirmed before releasing the report. Is that still your position today and to your knowledge, has anybody been nominated yet? Mr. Lamont. No, ma'am, unfortunately, no one has been nominated to date. I continue to check with our White House liaison on this matter every week, every Monday, in fact, and I am hopeful that we are able to release the report. I share your concerns about the economic and environmental consequences of the Asian carp migrating up into the Great Lakes system. Ms. Kaptur. Do you actually need that Assistant Secretary to be in place in order to release the report? Mr. Lamont. What I am trying to do is to work that so that is not the case, so that we are not in a delay situation, which we have been, unfortunately. Ms. Kaptur. And my understanding is correct, the report is complete? Mr. Lamont. The report--it is a draft report, ma'am, which would still need to go out for public review. And I want to work with our counterparts and the White House to make sure that we get that opportunity to get the report released. Mr. Joyce. Will the gentlelady yield? Ms. Kaptur. I would be pleased to yield to the gentlemen. Mr. Joyce. Can you elaborate on this or any other Army Corps efforts that you may have underway to prevent the further spread of the Asian carp? Mr. Lamont. We have met with the folks who have asked that this report be put on hold. We have expressed our concerns relative to the ability to get all sides of the story out there. What I mean by that is to get a draft report out on the streets so that the folks who are in favor of, for example, a modification to the Brandon Road Lock, would be able to comment on it, and the opposing interests would also be able to do that. I think we have made inroads, they understand that shareholder input and stakeholder input, if you will, is critical to the ability to complete this report. I agree with you. I am trying to do everything I can to convince the Administration that this needs to be done. Mr. Joyce. Thank you, I yield back. Ms. Kaptur. I just wanted to say that at one point you stated the release of the Brandon Road Report has been deferred pending further coordination and, in a way, you tried to answer Mr. Joyce there. What is the coordination? You say a draft report. What has to happen in order to release it? If it were not so vital to the entire Great Lakes, I would not be pressing, but it is. Mr. Lamont. No, I understand fully your concern. I share that concern, and I want to do everything I can, and hopefully I am not dancing around this. I am trying to do everything I can to convince the Administration to release the draft report, to elicit all stakeholder input on this, so that we can come to a potential solution that would serve everyone's interest. That is critical. Ms. Kaptur. All right. And I would just state for the record to the members that may not be aware of this. In the President's budget submission, he has eliminated the Great Lakes Restoration Initiative, and that is where the money is coming from to date, and it is not the right place to fish out the carp south of Chicago--move them 30 miles south just for the moment--but we do not have a regular funding source without a biological control to keep these things out. So, one of my questions is, either directly now or in an answer back to us, assuming that we cannot fix the Great Lakes Restoration Initiative--I hope we can--what area of your budget could we plus up in order to move those fish back down the Mississippi? We have to. Mr. Serrano. Will they kill the beaver? I will take them. Ms. Kaptur. I was going to ask, can you send us some beavers? I do not know. Mr. Serrano. I am saying, if they kill the beaver, I won't take it, but I will take them if they do not kill the beaver. Mr. Lamont. Representative Kaptur, we do have enough funds to complete the draft report to get to a final feasibility report. That is one critical step. We might be able to work with you and your staff on looking at our Operations and Maintenance account on possible opportunities there. Ms. Kaptur. All right. Mr. Lamont. General Semonite and I would be happy to meet with you on that. Ms. Kaptur. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Mr. Fortenberry. Mr. Fortenberry. Thank you Mr. Chairman. My questions will be directed to you, General Semonte. I am sorry, Semonite. Mr. Fortenberry. I am sure you have been challenged quite a bit on the 408 permitting process. In Nebraska, we have a very unique situation in which we have municipal authorities called the Natural Resource Districts, which are taxing authorities, which are held accountable by elected officials who run for the Board of the NRDs, in which we call it. There are various regions of the State. They do an outstanding job of flood control, meeting the demands for recreational projects as well as environmental restoration. A number of their projects enjoy extraordinary high numbers in terms of the benefit-to-cost ratio. You have supplemented their efforts on a number of occasions. There is a debate, of course, about the 408 permitting process as going beyond the original intention of the law in interfering, potentially, with the expedited issuance of initiation of new projects. That is one concern. Second is, is there consideration in which you can enter into joint financing agreements so that projects that are already evaluated by our municipal taxing authorities, governance structures, that are shovel-ready and ready to go, could be entered into with a supplement from the Federal Government and jointly shared by, again, the local taxing authorities so that we can expeditiously move shovel-ready study versus waiting for piles of money to be set aside and the huge opportunity cost that results from a slow progress on important projects? General Semonite. Congressman, we are very concerned about the speed of which we are doing permits, whether it is a 408 or all of the rest of the permits that we do under NEPA and 404. We have committed to be able to delegate some of these decisions. That allows the local commanders, the Colonels out there on the ground, to be able to make some of these decisions. There are about five different types. We have already delegated three of those down to the field, and our staff is looking at how we can continue to empower the team on the ground. The other thing is there are authorizations to be able to allow us to take monies; and what I probably need do, because it is a complicated area, is to ask my regulatory staff to come meet with your staff and look at the specific boards you are talking about and what can we do when it comes to funding. I do not want to get ahead of the P3 discussion here, because it is really not P3, but if there are some ways we can expedite it, anything that we can do to speed up the process, we are committed to do that. Mr. Fortenberry. Well, two things. In the 408 permitting process, there is a debate about whether you have taken authorities beyond where they were originally intended, which, again takes away authority from local initiatives. General Semonite. True. Mr. Fortenberry. Second is the aggressive partnering, and perhaps a new innovative way that would allow, again, municipal structures like we have uniquely in Nebraska that are dedicated to the similar mission. So these are held accountable to the public through elected officials and, again, they have their own taxing authority in which if there could be joint financing, we are ready to go and go quickly, that would meet the same objectives as the Corp of Engineers has. General Semonite. And sir, we want to work with you on this. We just have to make sure we have figured out what our authorities are, what can we do, and if we can find better ways of doing things for the right reason, we are all in. Mr. Fortenberry. So, are you indicating a shift of culture in the Corps in this regard? Are you looking at specific changes in the regulatory atmosphere, or all of the above? General Semonite. I think talking, personally, very holistically--I have been in the Army 37 years; I have been in the Corps 12 years. Over time, we have moved to where an awful lot of things come to Washington, D.C., for decisions. And so, in my 4 years, on my watch, wherever I can continue to make those decisions at the right level, that people are informed, they have the capacity, they have the authority to be able to do that, whatever I can do on my watch to streamline, we want to be able to do that. Mr. Fortenberry. Well, again, I am talking about governance authorities that have the same mission, or similar parallel missions that you do, that are ready to go, and, obviously, this affects us the most, so we are going to try to do it right. General Semonite. And sir, it is just a very complicated area. I do not want to get in front of anything we are doing for EPA or anything on which the Committee has given us other guidance. I just want to make sure we research this and figure out how can we find a common path ahead. Mr. Fortenberry. Okay, can we then see your staff within the next month or so? General Semonite. Yes, sir, the next couple of weeks, 2 weeks. Mr. Fortenberry. Thank you, General. Thank you, Mr. Chairman. Mr. Simpson. Ms. Wasserman Schultz. Ms. Wasserman Schultz. Thank you, Mr. Chairman. My initial question is of Assistant Secretary Lamont and Lieutenant General Semonite because I am kind of at a loss here. Because it appears that funding for other ecosystem restoration work by the Corps in South Florida, including the Everglades Ecosystem, you know, the non-CERP South Florida ecosystem restoration funding has been cut by nearly $30 million. Are we really not funding non-CERP projects under the Corps construction account at all or is it that the Corps is supposed to perform all the construction work on non-CERP projects with only the $1 million allocated by this budget? Mr. Lamont. Ma'am, if I could get some clarification? You say, ``non-CERP,'' could you give me an example? Ms. Wasserman Schultz. Like the C-111 South Dade project which helps to prevent groundwater from seeping out of the Everglades National Park. I mean, that is an example of a non- CERP project. Mr. Lamont. There is not a concerted effort to slow down the Everglades work and related work in that area. What we are trying to do is to continue an orderly process. And I know you may be looking at the top line number, for example. Ms. Wasserman Schultz. Yes. But here is why, Mr. Lamont, because non-CERP projects in fiscal year 2017 were funded at $30.5 million, and that still was not enough. How is the Corps going to continue to work on these vital projects with $1 million? I mean, really? We are never going to finish restoration of the Everglades if---- Mr. Lamont. My understanding is these non-CERP projects are anticipated to complete with prior year funds. That has been the emphasis. I do not want to give you the impression that we are trying---- Ms. Wasserman Schultz. Are you suggesting---- Mr. Lamont [continuing]. To slow things down. Ms. Wasserman Schultz [continuing]. There are enough prior year's funds? There were not in fiscal year 2017. Mr. Lamont. Ma'am? Ms. Wasserman Schultz. There are enough prior year funds to complete non-CERP projects? Mr. Lamont. Yes. Ms. Wasserman Schultz. Well, not so far. Mr. Lamont. If you need additional information, I will work with you on that. Ms. Wasserman Schultz. If you could show me, that would be wonderful. Mr. Lamont. Okay. Ms. Wasserman Schultz. And then I have a question for both of you about Port Everglades. Because you are zeroing out new starts, and we need construction funding for these projects across the country, the proposed budget requests a steep decrease in overall Corps construction funding. For example, Port Everglades, in my district, requires widening and deepening. We are authorized in the water bill. It is critical to our region that the Port Everglades Channel is widened and deepened. We have to go from planning, and design, and engineering to the construction. How many new starts does the Corps need to address all navigation construction projects that should be started in fiscal year 2018, including Port Everglades? And, also, how much construction funding would be required to appropriately address all of these projects in fiscal year 2018? Mr. Lamont. Let me try to address first your concern on Port Everglades. As with all Civil Works projects, they need to compete, and the competition is based on a benefit-cost ratio at a 7 percent discount rate. No matter what Administration, that is the criteria we must deal with. My understanding is on Port Everglades that preconstruction engineering and design is fully funded in the work plan for $2.8 million. We are trying to keep this project moving along. It has already been authorized. I worked personally on defending the Chief's report on this project in my former position, so I know exactly what you are saying. I have been to Port Everglades. I have seen the amazing amount of traffic through that small port. Ms. Wasserman Schultz. And if you recall, we were significantly delayed by an error in the formula that the Corps made themselves. And so, we are already behind the eight ball, significantly behind where we should be, where construction funding should be in the pipeline already because we should have made the last water bill. Mr. Lamont. Yes, ma'am. Ms. Wasserman Schultz. And it was because of the Corps' error that we did not. Mr. Lamont. Along with, unfortunately, all the mitigation requirements that the project---- Ms. Wasserman Schultz. Yes. Mr. Lamont [continuing]. Drew out through our coordination process. I agree with you. Ms. Wasserman Schultz. And lastly, you mentioned in your statement, Lieutenant General Semonite, that the budget gives priority to coastal ports with high levels of commercial traffic. Again, Port Everglades is one of the top 10 busiest ports in the United States, but the budget allocates only $420,000 in Corps' Operations And Maintenance. What criteria was used in crafting the amounts allocated in this budget? Because I can tell you right now, $420,000 is sorely insufficient for the operation and maintenance of such a vital port like Port Everglades. Either one of you can answer. General Semonite. Congresswoman, there is a large backlog in O&M. It is over $2 billion right now, so it is just that we cannot do all the things we need to do across all the ports. And if there is anybody that is a fan of both the coastal ports and the inner waterways when it comes back to the imports and the exports and the economic value of this country, it is me. I have been involved in a lot of them. This is when we must keep pushing to try to get all the right funds we need to get to these projects. Ms. Wasserman Schultz. Would you gentlemen mind, as I wrap up, Mr. Chairman, coming in and giving me a more granular briefing? General Semonite. Not at all, ma'am, that would be great. Ms. Wasserman Schultz. Thank you so much. I yield back. Mr. Simpson. Mr. Lamont and General, can you please discuss the status of the Columbia River Treaty? I know you got a new line item in this budget, $9.5 million for Columbia River Treaty, 2024 implementation. Where are we on that? General Semonite. Sir, I will give you more details, but our staff, Major General Spellmon up in the Northwestern Division, is working this to be able to continue, to be able to stay on track, to be able to get the plan in place. Right now, we are looking at some challenges with the storage and what is in the old plan with prepaid storage and what is going to happen with new storage. We are concerned about how that is going to work, and we have got to be able to make sure that we can set the conditions in the next couple of years so that we do not lose any equities with the United States as we continue to renegotiate this with Canada. But, I will certainly come in and lay this out or have the Division Commander do that as well. Mr. Simpson. Okay. General Semonite. It is ongoing. We have the best team working it up in the Northwestern Division to be able to ensure we are protecting the equities that we have had in some of the prior treaties. Mr. Simpson. I would appreciate an update on where we are on the Columbia Treaty negotiations. But the $9.5 million is just to do the work necessary? Continuing to negotiate this treaty and being involved in it and so forth? General Semonite. That is my understanding. Mr. Simpson. And what we have done in the past has just come out of the Army Corps budget, and this time we have line itemed it out? General Semonite. Yes, Mr. Chairman. Because there is so much extra effort that is really required. We have a lot of people working this, so I think that is where there is a delineation now to be able to make sure that we have dedicated funding so we do not end up somehow getting that effort cut. Mr. Simpson. Okay. Mr. Cameron. If I could, Mr. Chairman. The Department of the Interior is coordinating with the Corps and the State Department as well, because we clearly have interest in this issue. Mr. Simpson. Yes. Mr. Mikkelsen, you mentioned in your testimony that the flooding that is going on currently in Western States, if it is not a drought, it is a flood. It seems like nothing in between. And as you know, we had a record amount of snow in a lot of the Pacific Northwest and, unfortunately, the melting pattern has been rather rapid. What is the Bureau and what is the Army Corps doing about the flooding that is going on, particularly in Idaho and other Western States? As you know, we have had washouts of roads and everything else. It is a mess up there right now. Mr. Mikkelsen. Mr. Chairman, Reclamation has been monitoring reservoir elevations, reservoir levels in conjunction with releases ever since we started with runoff this spring. And to the maximum extent possible, given the limitations of the system and the existing snowpack, we have probably minimized flooding to the tune of hundreds of millions of dollars at this point. For instance, just in Idaho, on the Boise River we are running about 9,700 cubic feet per second (CFS) through downtown Boise. That is about as much as we can run, but we have been running that for a long time to just make sure that we do not have to have any surge events happening. Mr. Simpson. Good. General Semonite. Mr. Chairman, very, very similar. A lot of it is, pre-storm, pre-event, how we can continue to be able to draw down to the right level. Our teams are out on the ground working very, very closely with local and State authorities. If there is damage out there, then we can utilize our FCCE money that has been appropriated. We are able to ensure that we are able to repair some of those damages if that is the case. I think the main thing also is being very transparent, and we have a lot of systems that we can put on the web, so everybody can see where we see the water going, and continue to try to be advised of what is out there. Mr. Simpson. Thank you. Who is next? What order are we in? We are going to start the second round. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. General Semonite, I might ask your help in the following way. I know that General Toy is going to be doing hearings throughout the Great Lakes, and I would like to use this opportunity to see if you might be able to help me. The dates we have been given are dates that it is impossible for a member to be there because we are voting, and I would very much like to gather all of the mayors from my long district along the lake to meet with him and deal with some of the significant issues we face on our watershed. So if you could just take--maybe you could help make that happen if there is some way to reschedule or add another day or something. There is really a lot of pent-up desire to meet with the general. So perhaps you could take that message back for me? General Semonite. We will definitely take it on, ma'am. Whatever we can do if it is General Toy, or if we need to have other people there. If you want me to fly in, it is no problem. We would love to be able to meet with the stakeholders. Ms. Kaptur. Thank you very much. I have a couple of other questions, if I could here. Do you, General Semonite, do you have any relationships on the Great Lakes related to energy production? General Semonite. So I probably need to get back with you on the details. There are a lot of areas where we might have a dam where we have a lock, let's say, and we allow a private vendor go in and put a small hydro in one of those. A good example, on Lake Erie, I know we have one of those. That way we are able to save the taxpayers money because we take some of the electricity that that vendor uses, and we run our piece, and we do not have to pay O&M to some other power vendor. And therefore, he is able to do O&M for the lock and dam. This is something that is probably 20 or 30 years old. But there are probably a lot more of those that are out there, but wherever we have been able to find ways of bringing in private entities, we have certainly done that. Of course, we do the same thing for recreation. I know your question is really on energy, but if you want I will have General Toy to lay out the information for the whole Great Lakes region and figure out where are we, and then if you think we should be doing something more than we are doing within our authorities, I am more than willing to look at those opportunities. Ms. Kaptur. All right. Well, you know, we call our committee Energy and Water, and I am very jealous, really, of other parts of the country when I see what is going on and some of the challenges we face. But with new energy technologies and so forth I do not know how the Corps really thinks about that, and I would be very benefited by a briefing on that and examples from our region, and perhaps a few examples from others. They are very different systems, but with some of the technologies and facilities that you manage it might be very interesting to look at the energy piece, even though albeit it very small, in the Great Lakes. But nonetheless, it would be interesting to see your history there. General Semonite. This goes back to a question the Chairman asked earlier about P3, and I do not know if everybody was here, but we need to have policy on this. We have a lot of people that walk in, private companies, and say we would like to be able to tack something on the back side of your dam because we are able to make money on the use of the water. Well, that is great, but, on the other hand, I need to make sure that the interests of the Federal Government are taken care of as well. So there cannot be any free lunch. We must be able to figure out how to share that risk. And if there is a way, without damaging the capabilities of the project, that we can continue to be able to get some degree of private funding if that would then bring down the O&M budget. We are looking at a lot of these things now. It does go back to the fact that we must have some good policy on exactly how do we take the P3 piece and work that, even at a much smaller level. Ms. Kaptur. All right. Do you have any relationships with the Saint Lawrence Seaway Development Corporation either related to the lock operations or energy production? General Semonite. I know that our Commanders have relationships. I think they are actually on the Commission, so they continue to look at water flow, ecosystem restoration, both our Buffalo district, as well as General Toy and his role there as the Lakes and Rivers Division Commander. I am not sure of the formality of exactly what that gives them with respect to authorities, but I know that we have a very close relationship with the Commission. Ms. Kaptur. All right. I would be very interested in a briefing perhaps with our Great Lakes members to hear a little bit more about what that is, how that works. General Semonite. Yes, and maybe the best thing we can do is if there is ever a time where you have either the Governors together, or the stakeholders together that we fly in with a team and lay out what we are doing in ecosystem. What we are doing on energy. We are systems people. We want to look at everything because it all works together, and whatever we do for navigation has impacts back to the ecosystem. The more that we can talk about all the variables that are in these systems, then everybody does not take a parochial viewpoint as to the one thing that they care about. They must understand there must be plusses and minuses across the entire system. Ms. Kaptur. All right. My final question relates to the Soo Lock and we wrote a letter to the Corps expressing our concerns about how you were conducting the economic reevaluation of the Soo Lock. Could you comment on the methodology that is being used in the reevaluation, and if that reevaluation will be finished within the 2-year time schedule? General Semonite. It will be done within the time period. We are working funding issues right now. We want to make sure that it gets the money it continues to need to be able to finish. There is just a small amount of money there. As far as the exact methodology, it includes consideration of a conveyer system consistent with approaches taken on other navigation lock projects throughout the Corps. We are looking at least cost, technically feasible alternatives. Again, this is another thing that is a relatively complex brief, but if you want to, we can certainly schedule some opportunity to lay out exactly what that methodology is. And, again, we want to be informed. If there is something that we should be doing that we are not, we want to make sure that we are listening to the bright ideas of where, other people need us to go. I think we have been very transparent, but that is a relatively regional area, and I just do not have the expertise at this level to answer your question. Ms. Kaptur. All right. I know that Congressman Joyce and I co-chair the Great Lakes task force, and Congressman Huizenga is the representative from the House on the International Joint Commission now, and all of us have a deep interest in the Soo Lock and its future. General Semonite. I will get you a factsheet right away. I have my factsheets here that I can walk you through. It is relatively detailed, so we can give you something in a couple days, and then if you think you want a lot more, we will come and walk through exactly where we are going to go on this. Ms. Kaptur. All right. Thank you. Thank you very much. Thank you, gentlemen. Ms. Simpson. Mr. Aguilar. Mr. Aguilar. Thank you, Mr. Chairman. It is my understanding that the Army Corps has played a role historically in past Department of Homeland Security-related border infrastructure projects along the Southern border of the United States assisting with technical expertise, testing oversight, and contracting out certain assignments. Could you give us a run through of those past efforts, what you anticipate your role will be in fiscal year 2018? General Semonite. Congressman, you are right. We have worked very closely with the Customs and Border Patrol not only in the United States, but where they have gone to other countries and tried to help. We have built border stations in the country of Georgia, for instance. What we have done recently is mainly repair work on what we call ``the fence.'' There were some smaller portions, both personnel fences and vehicle fences, that were put in by us back in 2006. Some of those need maintenance or need additional work. Some of those were not completed in their entirety. Right now we are working for the Customs and Border Patrol to go back into existing areas and mainly replace or finish the type of construction that was done back in 2006 to 2009. Again, we work for Customs and Border Patrol. I do have seven large laboratories that are very good when it comes to hydraulics, when it comes to things like tunnel detection, when it comes to geospatial information. We have been asked by Customs and Border to partner and to be able to use the technology in those laboratories as they look at what the options are on a future construction of the potential wall. So right now we are offering our services to Customs and Border mainly in a design and technical advice type realm. Mr. Aguilar. What do you anticipate for fiscal year 2018 that support to Customs and Border Patrol being? General Semonite. I think right now they have asked us to do about $11 million in '17. I do not have the '18 number. I am sure that is in the budget. I just did not pull that for this hearing. We can certainly tell you that, but it is strictly a reimbursable basis. The money would go to Customs and Border, and then they would contract us to do---- Mr. Aguilar. You are a contractor for services? General Semonite. Yes, sir. Mr. Aguilar. In providing that, if you are asked to flex up or directed to provide additional support it would come through that same similar type of line item, through CBP, appropriated and authorized through CBP, and then you would then contract that piece out? Whether it is the labs or whether it is, you know, physical construction for the repair portions? General Semonite. Correct. If it is done in-house, we do not contract it. We would task our guys and then reimburse them. But what you are saying is correct. We would then acquire those services either with an independent contractor or with our own in-house staff. Mr. Aguilar. Okay. Well, I think that we will probably dig a little bit deeper on this discussion and ask you additional questions as we move forward. General Semonite. And, Congressman, as we move forward we would provide whatever you want. I would just ask that when we do that, that we continue to be able to have the Customs and Border team there. We are very committed to be able to work underneath their direction and not to get out ahead of them. Mr. Aguilar. Sure. I appreciate it. Thanks, General. Thanks, Mr. Chairman. Mr. Simpson. Thank you. And I thank all of you for being here today and for your testimony. As the ranking member said, this is the Energy and Water Committee, and obviously water is a very important aspect of the bill that we put together. And we have over the years been very cognizant, I think, as a Committee and really as a Congress on a bipartisan basis of sometimes the insufficiency of the request from either the Obama administration or from this administration and stuff. And, you know, we have got a WRDA target that is about $375 million or something like that, a million above what the request was for, and this Committee has worked very hard to make sure that we give adequate funding to the important work that you do. And it is not because you all have sterling personalities, although you do. It is because of the important work you do and the recognition by members of Congress on both sides of the aisle that infrastructure is very important. So we want to work with you to try to devise a budget that is best for the Nation and the work that you do. So I thank you all for being here today and we look forward to working with you. Hearing is adjourned. [Questions and answers submitted for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Tuesday, June 20, 2017. DEPARTMENT OF ENERGY WITNESS HON. RICK PERRY, SECRETARY, DEPARTMENT OF ENERGY Mr. Simpson. The hearing will come to order. It is my great pleasure to welcome Secretary Perry to this first meeting with the Energy and Water Subcommittee. Secretary Perry, congratulations on your selection as the 14th Secretary of Energy, and thank you for your continued service to our country. We have a lot to discuss today, so I will keep my remarks rather brief. This budget request reflects the importance of the Department of Energy's national security responsibilities. The budget request proposes a strong increase, $994 million, for the nuclear weapons activities, and we need to ensure the effective nuclear deterrence now and for our future. This program and other defense activities for this bill are and will remain a high priority for this committee. I am also pleased that this budget request proposes appropriate funding for Yucca Mountain. The previous administration made the costly, and I believe wrong, decision to abandon the Yucca licensing application, changing courses on this program, and ignoring the law. The President's budget proposal proposes a $3.5 billion decrease for energy programs, reflecting the Administrations's decisions to focus resources on early stage research and development. That is a substantial reduction, a reduction this committee must carefully review in order to understand the impacts to the important programs and activities within this bill. Like the President, we want to eliminate waste and duplication, and ensure the best use of each and every taxpayer dollar. This hearing is an important part of our oversight process. I appreciate you being here today and hope that we can work together to move forward on a budget that will ensure our energy independence and keep consumer prices affordable. Please ensure that the hearing record, questions for the record, and any supporting information requested by the subcommittee are delivered in final form to us no later than 4 weeks from the time that you receive them. Members who have additional questions for the record will have until close of business on Thursday to provide them to the subcommittee's office. With that, I will turn to my ranking member, Ms. Kaptur, for her opening statement. Ms. Kaptur. Thank you, Mr. Chairman. I don't know if I can be as brief, but I want to welcome the new Secretary, someone who has experience as an appropriator himself, and also a Governor, former Governor, from a very important energy State. You have a lot of experience and we need it all. Thank you, Mr. Chairman, for yielding the time, and Secretary Perry for joining us today in your very first hearing before this committee, which you will come to like. Congratulations on your confirmation. The budget request for the Department of Energy, while providing healthy increases of 9 percent to defense accounts, unfortunately slashes the nondefense energy accounts by more than one-third, of which science is cut by 17 percent. To speak to the energy and science accounts for a moment, initial estimates are that this budget request, if enacted, would result in the loss of approximately 7,000 highly skilled technical experts in job positions at the Department's world class National Labs. This is a big worry, this is a big class worry. Given that the labs have a multiplier effect on jobs in their communities, somewhere in the range of two to three, the total job loss would be in the range of 14,000 to 21,000 jobs. In addition, initial estimates are that the reductions to just the energy efficiency and renewable energy and science accounts, the sector inventing our future and of diversified energy production in this country, will result in some $2 billion less in Federal support to universities and other research institutions essential to nurturing America's future scientific expertise. This is another world class worry. The United States remains, despite recent efforts to reduce funding, a leader in innovation. But this budget, I fear, cedes that leadership to China and nations in the energy and basic science sectors. China has already monetized the solar panel industry, and I could talk to you for hours about that, appropriating American innovation and cornering the market in manufacturing for the industry with a lot of intellectual property theft going on at the basis of that. While this budget proposes to cut funding for clean energy, China is prepared to spend $360 billion by 2020 on clean energy, while creating 13 million jobs and dislocating millions more of ours. This is anything but an America First policy. This budget request also moves the Department's focus to early stage research, terminating all later stage research, which frankly I can't understand, along with any deployment- related activities. While we have struggled with the appropriate split between early and late stage R&D, along with which deployment activities to support, my fear is that this approach will result in a cornucopia of good ideas residing at the labs in a form still insufficiently mature for private industry to take over. We must have attention to this segment of the budget. We have been, for years, talking about what we can do to accelerate the development of technology originating in our labs; this budget would be a step back. Let me end with this: Turning to the Office of Energy Efficiency and Renewable Energy, I would like to read from a letter written to our subcommittee, which I would like to associate myself with. The letter is right here. It says: We are the entire group of Senate confirmed Republican and Democratic Assistant Secretaries of Energy who led the DOE Office of Energy Efficiency and Renewable Energy between 1989 and 2017. We are particularly concerned about the administration's recent proposal to cut the EERE budget by 69 percent from fiscal year 2017 enacted levels. While we have not always agreed on the relative emphasis of various elements of the EERE budget, we are unified that cuts of this magnitude in the proposed fiscal year 2018 budget will do serious harm to this office's critical work and America's energy future. EERE supported research development and demonstration and energy efficiency, transportation, renewable energy, clean energy, manufacturing, and electric grid modernization are critical to encouraging U.S. innovation, creating good paying jobs, cutting pollution, and ensuring American global competitiveness. Other important EERE programs with similar benefits focus on setting efficiency standards for appliances and equipment, helping States deliver energy efficiency improvements, leading the Federal Government's efforts to reduce its own $23 billion of annual energy bills, and cutting energy use in low-income homes. Mr. Chairman, I would ask permission to enter the entirety of this letter into the record. And with that, I will close my remarks. Mr. Simpson. Without objection. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Ms. Kaptur. Thank you once again, Mr. Secretary, for being here with us today, and we look forward to your testimony. Thank you, Mr. Chairman, for the time. Mr. Simpson. Thank you. We are also glad to have the chairman of the full committee and the ranking member of the full committee with us today. Mr. Frelinghuysen. Mr. Frelinghuysen. Mr. Secretary, good afternoon. Mr. Chairman, thank you for the time. I also welcome Secretary Perry to the Appropriations Committee. We look forward to your testimony in hearing your frank and candid views on many issues. Today's hearing is an important part of the oversight duties of the committee. After all, the power of the purse lies in this building. It is the constitutional duty of Congress to make spending decisions on behalf of the people we represent. As you referenced in your testimony, Mr. Secretary, you must annually certify to the President the American nuclear weapons stockpile remains safe, secure, and reliable. I think there is no more important responsibility. I think you know that. These are nuclear systems that are part of our national defense, and they are essential to meeting our commitments to our allies and showing resolve to our adversaries. The committee has always provided vigorous support to the nuclear weapons stockpile. I am pleased to see that the administration recognized that with this budget request. And may I also say that I am a strong believer in nuclear power as being one of the solutions to our vast energy needs, and the fact that you recognize that yourself I do hope is true. Your proposal of the Department also takes great strides to deliver our exascale computing system. This is an area where the United States has been losing ground to China and others. I agree with you, we must take back American primacy in computing science. The United States has correctly invested heavily in scientific research. This work has produced dramatic scientific breakthroughs and innovation, and in the process, created high quality jobs for Americans. We know you have a lot of difficult decisions to make. I do have some concerns about cuts to the fusion program and to certain aspects of nuclear energy. As you may know, the committee has repeatedly endorsed moving forward in the area of fusion energy. The proposed decreases, which are pretty dramatic, will inevitably delay some of the progress we are making in this exciting field, including in my home State of New Jersey, at the Princeton Plasma Physics Labs. I look forward to hearing more about these proposed cuts, and like the Chairman and other members, it should come as no surprise, we are very supportive of the work we need to do at Yucca Mountain. It's huge, billions of dollars of investments there. We need to get it open and use it as a proper depository for the future. Again, thank you, Mr. Secretary. Thank you, Mr. Chairman. Mr. Simpson. Thank you, Mr. Chairman. Mrs. Lowey. Mrs. Lowey. Thank you, Mr. Chairman and Ranking Member Kaptur, for holding this hearing. And I would like to join my colleagues in welcoming you, Secretary Kerry, before--Perry, Secretary Perry, before the committee. The Department of Energy has a critical role in America's national security and its economic prosperity. Its focus on research, development, deployment of clean energy, and efficient technologies makes the Department a leader in scientific innovation, job creation, and the battle against climate change. The President's fiscal year 2018 budget requests $28 billion in discretionary spending, a reduction of $2.6 billion from the fiscal year 2017 enacted level. On its surface, this funding level may not sound as drastic as the cuts proposed for other agencies, but increases 11.2 percent the National Nuclear Security Administration, 9.3 percent for atomic energy defense activities, which means the energy and science programs would be decimated with a 30 percent cut. While you no longer propose to eliminate the Department of Energy, your budget request would do grievous harm to American families by abandoning scientific innovation and ignoring the pressing threat of climate change. Carbon emissions are creating holes in our ozone layer and contributed to changing and often dangerous weather patterns around the world. Climate change has manifested as catastrophic events that threaten our national security and the livelihoods of American families. We are at a pivotal moment in world history, as there is still time to protect our planet from the disastrous impacts of climate change. Yet your budget proposes to reduce energy efficiency and renewable energy by a staggering $1.43 billion, or 69.3 percent. In addition, the National Academies of Sciences, Engineering, and Medicine just released a study finding that ARPA-E has successfully advanced American innovation, and yet your budget would terminate the program. These two offices contribute to important scientific research, reduce our dependence on foreign oil, and create 21st century clean energy jobs. There are more than 678,000 jobs in renewable energy in this country, and that number could be much higher if the Department of Energy continues to invest in energy research. Unfortunately, your budget is filled with false choices and by reducing investments in clean energy jobs. Just another broken promise by the Trump administration. The Department of Energy should be looking forward, paving the way to create new, clean, renewable energy technologies, to create American jobs, foster American energy and dependence, not cede the innovation frontier to other nations, with China leading the charge to undermine American leadership. I do hope Congress will work together. My friends on both sides of the aisle, I hope, will reject the Trump administration's misguided budget proposal in favor of a spending bill that works for all Americans. Thank you, Mr. Chairman. Mr. Simpson. Thank you. Again, Mr. Secretary, thank you for being here today. We welcome you. And let me say on a personal note, thank you for getting out. I know you have been active in the first few months in getting out and seeing the sites and the laboratories and what the DOE does. And thanks for coming to Idaho and Oak Ridge and other places. It is very nice to have a very active Secretary that is going to get out and investigate what this incredible Department does. So the time is yours. Secretary Perry. Mr. Chairman, thank you very much, and to all the Members. Ranking Member Kaptur, Mrs. Lowey, thank you for your remarks. And it is--I was just sitting here thinking as you all were speaking that this is the first time I have ever been on this side of the table, so I think I may like this side better. With that said, let me just share with you what an honor it is for me to be sitting here on this side to discuss President Trump's fiscal year 2018 budget request. I hope you know what a great privilege it is for me to serve this country one more time as the 14th Energy Secretary. And as you rightfully point out, I was a former legislative appropriator and a Governor, and I am very respectful of the budget writing process. I know the importance of the work that you are undertaking. And, Mrs. Lowey, again, I look forward to working with you and the members of this committee and the rest of our friends here on the Hill to finalize a budget that we can all be proud of and that serves the taxpayers well. In my three and a half months as Secretary of Energy, I have seen the firsthand impact of the Department's leadership, both domestically and internationally. I have traveled around the country to many of the National Labs, some based in your districts, and met with the brilliant minds that are driving their missions. And I look forward to visiting every one of them. These labs are truly national treasures. They are the future of innovation in this country. I have been in awe at the diverse scope of the Department's mission, this consequential work that we are charged with overtaking, overseeing. And I have also traveled oversees representing the United States both in Rome at the G7 and China a couple of weeks ago for the clean energy mission innovation ministerials. I had the opportunity to visit Japan on that trip to China and met with their leaders and their stakeholders about the future of our energy partnership. And on a pretty somber note, I toured the site of the Fukushima disaster and recognized what a monumental task they have before them. Interesting in my trip, and coincidently I guess you could say, that trip to China began on the day that President Trump announced that he would officially withdraw the United States from the Paris Agreement. I delivered his message to the world that, even though the United States was no longer a part of the Paris Agreement, we are still the leader in clean energy technology and we are committed to that mission. The Department of Energy does many things, many things well. And America has been remind--I should say it has remained on the forefront of technology for over 40 years because of the amazing men and women that work both at our headquarters and at these National Labs and men and women who are stationed with the Department of Energy overseas. They wake up every day knowing that they will make a real difference in people's lives. I told them on my first day that the greatest job I ever had was being the Governor of Texas. But after working here, I have come to realize that being the Secretary of Energy is now officially the coolest job I ever had. Under my leadership, our experts at DOE are going to continue to work for the benefit of every American and our allies alike. As Secretary of Energy, I am also a member of the National Security Council, and this council obviously is supported by the DOE and its mission to keep our Nation safe. President Trump's fiscal year 2018 budget request for the Department of Energy provides $28 billion to advance our key missions and focuses on important investments, including ensuring the safety and effectiveness of our nuclear weapons arsenal, protecting our energy infrastructure from cyber attacks and other threats, achieving exascale. That is so important, focusing the amazing network of our National Laboratories on early stage research and development. And my goals are straightforward: Advance our Nation's critical energy and scientific R&D missions, strengthen our nuclear security, fulfill our environmental management commitments. Mr. Chairman, I have just painted a rather rosy picture, a bright picture. And while there is a lot of good news to report, there are other hard conversations that we need to have. As you are well aware, there are approximately 120 sites in 39 States that are storing spent nuclear fuel or high-level waste. Every member on that dais has waste in your State. We have a moral and national security obligation to come up with a long-term solution, finding the safest repositories available. Listen, I understand this is a politically sensitive topic for some, but we can no longer kick the can down the road. As a former legislative appropriator, as an agency head, as the Governor, I understand following the rule of law is important. I have been instructed to move forward towards that goal. The President's budget requests $120.7 million to resume licensing activities for the Yucca Mountain nuclear waste repository and to initiate a robust interim storage program. Now, in addition to that challenge, Congress has spent $5 billion, taxpayer dollars on the MOX project that is way over budget with no end in sight. The Army Corps of Engineers estimated a cost of $17.2 billion and a completion date of 2048. The money appropriated for this project is money that could be used towards other priorities, like national security or cleanup at other sites. There is a better, there is a cheaper, there is a proven way to dispose of plutonium. In fact, we are already doing it. I look forward to having an ongoing dialogue with many of you about these tough but important issues in the days and the months to come. This budget proposal makes some difficult choices, but it is paramount that we execute our fiduciary responsibility to the American taxpayer. The President's proposal prioritizes the core mission of the Department by consolidating duplications within our agency in order to respect the American taxpayer. He deserves credit for beginning this discussion about how we most wisely spend our scarce Federal resources. As for me, this isn't my first rodeo. During my 14 years as Governor, I managed some tight budget circumstances. And I will suggest successfully, Alison, and I will do the same as the Secretary of Energy. Faced with limited resources, Texas became a shining example of energy growth, economic growth, higher educational standards, and important improvements to our environment. And we did it by all working together, Democrats, Republicans, folks that didn't want to be associated with either political party for that matter, but they loved their State. And just like you in this room, we love this country and we will find the solutions together, because we will set clear goals. We will manage the best and the brightest to achieve those goals and we will spend those scarce resources wisely. So with your help, I believe we can attain many positive outcomes at the Department of Energy on behalf of the American people. I thank you again for the opportunity to be in front of you, and I will attempt to answer your questions as well as I can. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Simpson. Thank you, Mr. Secretary. My first question was going to be to ask you about your vision for the Department of Energy, but I think you pretty much described that in your opening statement. Secretary Perry. Thank you. Mr. Simpson. So I will forego that question and get into some specifics. I was glad to see that you put money into, as I said in my opening statement, into Yucca Mountain. That is something that this committee has put money into for the last several years, and it always gets dropped in conference between the confrontation, I guess is the best word, between the House and the Senate on this issue. I noticed you also put money in for interim storage. First of all, despite the current law, the previous administration shut down the activities at Yucca Mountain. And can you briefly discuss your plans to move forward with Yucca and what you can do now to get things going while we await the additional funds from Congress? And tied with that is, what do you plan to do on interim storage when the current law and the thing that keeps us from moving there--and you mentioned how you always want to follow the law--but the law says licensing conditions for interim storage. Any license issued by the commission for a monitored or achievable storage facility under this section shall provide that, one, construction of such facility may not begin until the commission has issued a license for the construction of the repository under section 115(d), on and on---- Secretary Perry. Yes, sir. Mr. Simpson [continuing]. At Yucca Mountain. Secretary Perry. Yes, sir. Thank you. I am not sure there is an issue that is any more politically sensitive. I mean, you all have been dealing with this for years. But I think it is important for us to step back and look at the kind of the global aspect of--and I think it is so important for the Members of Congress to be substantially a part of this solution, because it is your citizens that have the most to lose if we continue to leave this waste in your districts. And in sites that are--Mr. Aguilar and I were just talking, over in the Inland Empire you are right next to a nuclear facility. When I was at Fukushima and we were talking about both the construction and the geology, if you will, the geography as well, and having those spent fuel rods in those cooling ponds in a region of the world that is inside that ring of fire, as they call it, and the potential to have a geologic event, and we could have a repeat of what happened at Fukushima to some degree. I mean, we have a moral obligation, as I said in my remarks, to remove this from as many of these sites as we can and put it in the safest repository. I went to Yucca. The first trip I took as the Secretary was to go to Nevada, to see that facility, to talk to the men and women that have been working on it for, in some cases, decades, and recognize that that is the proper place for long-term storage. So for us to do our duty, to follow the law, to put a plan into place, I think it is very important, Mr. Chairman. And the funding of NRC is important, because their licensing process, you know--from my perspective, this is a--this is a dual track. We need to be doing what we are doing, stand up the office, move towards having an orderly transition back to following the law, while the NRC is following their licensing. You can kind of help me on this one, but their funding is not in our---- Ms. Doone. Correct. Secretary Perry. They have their own funding, and so they will be over here asking you for that. Mr. Simpson. Yeah. Secretary Perry. But anyway. Mr. Simpson. Let me ask you, is there anything you can do? I would like to believe this budget will become the law of the land by October 1. I am not sure that is the reality, and we may end up in CRs and all sorts of things like that. We hope not, it is not our goal. Is there anything we can do between now and when this 2018 budget becomes law to help stand up the office and start moving forward on Yucca? Secretary Perry. We have some funds available to do that. And I am comfortable that that is our goal, to stand the office up, to clearly send the message that, that is the direction. You asked another question, Mr. Chairman, if I can briefly, you asked, rather, about interim storage. And I happen to be one of those that think that you can do and we should do both interim storage as we are working towards standing Yucca Mountain back up and getting it operational and following the law. The interim side of this, again, and I know we are going to talk about MOX later, but WIPP in New Mexico, a waste control specialist in the western side of Texas; those are both places--and I happen to think out at the Nevada test site--and again, I am not wanting to, stir something up here just for the sake of stirring something up, but if we are truly looking for the proper places to interimly store some waste, that test site has the potential to do that as well. And so there are a number of ways to deal with this. And I think it is so important to have the discussion with the Members of Congress so that they can share with their constituents why this is so important, that we move as much of this waste, whether it is transuranic waste or whether it is high-level waste, out of their districts to appropriate either interim, or in the case of Yucca Mountain, permanent storage sites. Mr. Simpson. I appreciate that. And I happen to be one that agrees with both interim and Yucca Mountain, that we need both of them. If we opened Yucca Mountain tomorrow, it would be filled if we put everything in there. Secretary Perry. Yes, sir. Mr. Simpson. So we have got to have interim storage. It would require to move forward with constructing an interim storage facility to changing the law. So we need to be working on that. So I know the Senate, Lamar and some others in the Senate, are working on some language. But anyway, we will work with you on that. Members, I am going to try to keep the questions to the 5- minute rule, especially through the first round, because we do have many members here today. So, Marcy. Ms. Kaptur. Thank you. Mr. Secretary, I come from the industrial heartland, Ohio. Ohio, Pennsylvania, Michigan, Indiana carried for the President. And so my question really concerns the proposed cuts in advanced manufacturing, which bite very hard in our region. In my district alone, I represent the Ford EcoBoost engine manufacturing facility at Brook Park; the largest truck facility for Ford at Avon. This is their heavy truck facility, the 750s and so forth; General Motors premier transmissions facility globally at Toledo; the entire--the largest Fiat- Chrysler manufacturing platform at Toledo for the Wrangler and Cherokee and so forth; and of course, major steel industries like ArcelorMittal, Republic, and U.S. Steel, which are undergoing enormous pressure because of dumping. I wanted to be direct--we can all get acquainted here. And obviously, you are from Texas, I am from Ohio. But your budget--the President's budget makes a 68 percent cut to this advanced manufacturing office at DOE. And I would really ask you, as we move forward with this budget, to work with us on this. Because when I spoke to one of the CEOs, and I am not going to tell you which one, for all North American operation, I said, what can I do to help you bring jobs back to this region? And his answer was, energy, energy. Find me a way to cut my costs in energy by one-third. By one-third. So we need--this is a tiny office compared to some of the other ones. But I just wanted to ask you where should I direct industries in my district if the energy audits and other support services that DOE currently offers, which are not sufficient, where are we supposed to send them? Secretary Perry. Ms. Kaptur, thank you. If there is one thing I have been a proponent of, and that is creating jobs and how to do it in States, and we--while I was a Governor, we were able to lure manufacturing jobs to the State of Texas, Toyota. As a matter of fact, every Toyota pickup truck--you know, there are lots of good brands of pickup trucks to drive. I am not picking them out. I mean, they were just a company that we were able to recruit and come to the State of Texas. And so I live and breathe competition every day. So I completely and totally respect what you have just said. With that, I would like to remind people that I am very--I am fairly versed in the budgeting process, and I know how this works. Again, it is the first time I have sat on this side of the table, but I know that the flexibility that you all can give to an agency head will be very, very helpful. So being able to prioritize where we focus our efforts, where we--being able to reduce duplication, being able to find places to save dollars, at the same time being able to deliver the product that the citizens want. Your constituents, I think they want to be able to know that there is an agency that, number one, is going to be responsive to their request, if it happens to be with energy efficiency or if it happens to be with--you know, is there a better way to deliver to your truck manufacturers some technology, innovation, partnerships? That is what we are going to be working on. Is it going to be in the structure that the previous administration or the previous administration from before them? Ms. Kaptur. Mr. Secretary, we invite you to the automotive heartland. Secretary Perry. Yes, ma'am, I will be there. Ms. Kaptur. We will have the CEOs all there. Secretary Perry. I want you to know-- Ms. Kaptur. My time is running out, and I have to get in my second question, but I appreciate your openness. Secretary Perry. Yes, ma'am. Ms. Kaptur. I appreciate your openness and your support of private sector manufacturing. My second question, you know, you come from down the southwest. It was just 122 degrees in Arizona. And up where I live, we are up against the Canadian border. And as a representative from what is called the cold weather State, I am especially fond of the weatherization program which your budget zeros out. Here is another area where I think you need our help. And that particular program has weatherized over 7 million homes and saved an average of $283 a year, which doesn't sound like a lot of money in Washington to the average consumer, but in my area, that is big savings. And the Mulvaney budget completely eliminates this program. So we hope that, as we move forward, that we will be able to resume the activities that we believe are very important for home weatherization in these older parts of the United States that are leaking energy. And we know that with good conservation we can save 40 percent of the energy we use, so it makes sense. I am sure as Governor you managed those programs. Secretary Perry. Ms. Kaptur, I--that is a statutory program. And the funding for weatherization has been cleared through our review process, and the 2017 budget and those are going forward. Ms. Kaptur. Thank you. Secretary Perry. And these are words that are going to make their way through the regular financial assistance system to get to the States. But I will assure you that I will work with you. We will come. And again, you are going to hear me say this a number of times here today, but I know--this is the first step in a long process. And I was a Governor long enough to know that Governor's budgets don't always come back to you the way that they start. And I think that is probably a fair statement. Ms. Kaptur. Thank you. Thank you very much, Mr. Secretary. Secretary Perry. Yes, ma'am. Ms. Kaptur. Thank you, Mr. Chairman. Mr. Simpson. Mr. Calvert. Mr. Calvert. Thank you, Mr. Chairman. I heard--the Secretary mention Toyota. Obviously, I have fond memories of Toyota. They used to be in California. Secretary Perry. It is doing really well, by the way. Mr. Calvert. Yeah, I know. On the topic of Interim storage. I used to represent San Clemente, CA. Darrell Issa represents the area now. He has a bill on interim storage, H.R. 474. Obviously, this is a concern in California that he has mentioned to you. A concern to me and all Californians is getting that material out of California into a safe interim storage facility. At the same time, the Chairman mentioned we are going to do what we can in congress to resolve the Yucca Mountain licensing issue that has been festering here for a number of years. If you put together a program for--for interim storage as called for in your Budget request, I hope there are some facilities that are on the top of the priority list. I think California would be right up there, because of as you mentioned, the ring of fire and the earthquake zone. San Clemente is right there; Camp Pendleton is right there in the middle of that region. So I hope you would take a look at the possibility that some sites would receive priority for interim storage. Secretary Perry. Well, obviously, Mr. Calvert, we would rely upon a lot of the expertise there at the DOE from the standpoint of, you know, which is going to move first. And obviously, I would suggest you all may have a bit of a say in that as well. I know that Senator Feinstein has the same concerns that you do, and a supporter of moving that waste with the greatest expedition that we can. So again, you know, how you prioritize which of those you would move first, I will try to work with the experts on that. But I think what is more important is that we agree that it has to be moved first. I mean, I think that is---- The other issue is hydrogen fuel cells. Secretary, a number of States have imposed zero emission vehicle standards on the industry. And as you may know, the fuel cell vehicle technology option is there. The State of California has been pushing that pretty hard. They are very bullish on hydrogen. Currently the technology is such that hydrogen fuel cell refueling areas, which could refuel about the same time as conventional gasoline engines, are feasible. Your budget has cut more than 50 percent for fuel cell activities, even though your Department has been pushing for fuel cell technology in the past. How do you feel about hydrogen as a potential fuel? And will your Department be working with industry to ensure a successful rollout of the hydrogen industry? Secretary Perry. Yes, sir. Mr. Calvert, I am--and the message that will come out of DOE is we are pretty much all of the above. Hydrogen being one of the all off the aboves. And I think working with our National Labs, working with our universities, working with the private sector--I am a big public-private partnership proponent, supporter. My 14 years as being the Governor, one of the reasons we were successful is that we, you know--inside that State, we removed the regulatory burdens. We tried to put tax structures into place. We worked towards having that skilled workforce so that those private- public partnerships could flourish. And you will see us pushing a lot of our innovation, hydrogen fuel cells being one of those, to the private sector to try to commercialize those technologies. We think that is-- Ms. Kaptur asked the question earlier--or she didn't ask the question, she made the statement earlier about the reductions in late--in our late modeling of our projects. And the fact is that is where those need to be pushed out to the private sector. The early stage basic research, that is our core responsibility. That is what the DOE was set up for back in the late 1970s to do and going forward, and we will continue to. You know, I think we do need to have a conversation about late stage development and what is the appropriate amount of dollars that we spend. How do we coordinate that? How do we find the private sector partners to come in and then commercialize that and make it work? I would suggest we are probably--I mean, again, without having the experts here whispering in my ear that here is exactly where we are, my instinct is that hydrogen fuel cell technology is getting close to that point to being able to push it out to the private sector, to see if it is going to be able to stand on its own from the standpoint of a commercialized technology. If it does, it is another opportunity for us to create jobs. It is another opportunity for us to show the world our commitment to the environment. It is another opportunity for America to lead on this climate issue. Mr. Calvert. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Mrs. Lowey. Mrs. Lowey. Thank you, Mr. Chairman. And thank you again, Mr. Secretary. I just want to say I appreciate your comments regarding interim storage sites, because as we know, Yucca Mountain is so controversial. And even if it is built, it is still a year away from being functional. And in my district, we have the Indian Point Energy Center, which is scheduled to cease operations in 2021. And as I am sure you know, without a central repository or interim storage sites for the waste, the spent fuel rods are stored in dry casts onsite at decommissioned plants. And this is key because we are all talking about creating jobs and economic development. And these sites just cannot be redeveloped into productive properties because of the storage there. Secretary Perry. Yes, ma'am. Mrs. Lowey. So I just want to mention that I appreciate that. You are supportive, and I hope we can move forward. I wanted to ask you a question about our Nation's electric grid, because you and I know it must be upgraded to address reliability and security issues. And given the fact that the grid is arguably the most complex and critical infrastructure in our Nation, upgrading it will be a monumental challenge. How would your budget request address this issue? Have we anything to show for our recent efforts? What are the most pressing issues we should be addressing? And what kind of public-private partnership is the Department involved in to accelerate efforts for the grid of the 21st century? I must say, as you know, I am a New Yorker, and I often think about, oh my, what would happen if this grid goes down? So I appreciate your response. Secretary Perry. Mrs. Lowey, I think you are very prescient in having this issue at your forefront. And you are absolutely correct, the chaotic event, if we were to lose one or two of our grids in the northeastern part of the United States and a massive amount of people without electricity, without the ability to communicate, without our hospitals being able to operate, I mean, the stunning impact that it could have on our country, I am not sure that most Americans really understand the potential. And one of the core responsibilities at the Department of Energy, by an executive order that was signed by President Trump, with the Department of Homeland Security, being able to have a cybersecurity study to make sure that this country is as protected as it can be from individuals who would do harm to our citizens through compromising our electrical grid. There is--at this particular point in time, I want to bifurcate just a bit and talk about, there is a grid study going on now at the DOE to look at all of our ability to deliver electricity in a sound and a thoughtful and a stable way. And that is ongoing. We should be having that available at the end of the month. And that is a question about do we have the base load, or all of our different forms? Where does nuclear come into this? Where does our renewables play? What role does carbon capture, utilization, sequestration of coal plants have to play in the base load? And then are we going to be able to have a secure electrical grid, not just in the case of protecting it against nation states or bad actors out there that are digitally trying to penetrate into that. We have seen what happened to Saudi Arabia with Aramco. We saw what happened to Ukraine as there were some bad actors that attacked their power. And so DOE is comitted to that. When I was at Los Alamos, when I was at Oak Ridge and INL, you have a test grid at the chairman's lab. There is a lab, Mrs. Lowey, that is in place, that is an operational grid, where we literally can come in and break things and know how to patch them up or to keep those types of attacks from occurring. With that said, I have concerns--that is a priority, Mrs. Kaptur. I mean, grid security is a priority of the Department of Energy. It is one of the reasons that we have asked--well, that I will ask at the appropriate time on the funding side to make sure that that part of our responsibility is appropriately funded and making it as efficient and as effective as we can. Because you are absolutely correct, if we don't get that right, it can be devastating for our citizens. Mrs. Lowey. Thank you, Secretary Perry. Thank you, Mr. Chairman. Mr. Simpson. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. Welcome, Mr. Secretary. Secretary Perry. Thank you, sir. Mr. Fleischmann. And thank you very much for stepping up and assuming this wonderful position as Secretary to the Department of Energy. And I thank you for all of your past service and current service, sir. As part of my representation of the people in the third district of Tennessee, I represent the great City of Oak Ridge. It is the birthplace of the Manhattan Project. We have Oak Ridge National Lab, Y-12 National Security Complex. We are building the uranium processing facility. We have a large EM mission. Literally, the city of Oak Ridge touches the Department of Energy in many ways. I also want to thank you for your visit. We had a great visit, and I appreciate you addressing all of the different issues we have there. If I may, sir, I have a few questions. Several years ago, the Department of Energy consolidated the management of the Y- 12 plant in Oak Ridge with Pantex in your great State of Texas. From what I understand, that effort is now reaping benefits through efficient execution of the mission for the Nation and has saved several hundred millions of dollars. It took a lot of foresight on the part of DOE to conceive of this contract. And while it has not always been easy, we are clearly seeing the benefits that we were promised. Do you envision those cost savings continued? Are you pleased with what you are seeing on the efficient delivery of the mission at Pantex and Y-12, sir? Secretary Perry. Yes, sir. There is a number of examples. All too often, we talk about the challenges that we face. We talk about, you know--we discuss or spend enough money in a particular line item and what have you. There--as I have become more and more familiar with the DOE's history and with their budgeting process, there are multiple examples of where we have been successful in what either you all or together we have come up with ways to be more efficient. I will take a little bit of a detour here, but the nonproliferation side. I mean, we are now--I think there are 40 countries in Eastern Europe that no longer have highly enriched uranium because of the work that DOE has done, and so we are able to reduce the spending there. So there are a lot of successes. That is not to say we don't have these challenges, as you all are very good about pointing out. But the point is this is one of those, thank you for pointing out a success that, you know, all too often, government doesn't get patted on the back and say well done. Mr. Fleischmann. Thank you, sir. The uranium processing facility is a one-of-a-kind project that you recently visited at the Y-12 Security Complex. According to NNSA reports, it is close to the next phase. During the construction, UPF will require a sharp funding increase. Is the Department still prepared to build UPF at $6.5 billion by 2025? If so, how do you plan to handle the top funding years, sir? Secretary Perry. Yes, sir. The NNSA remains committed to completing the UPF and ceasing the EU programmatic operations in that old building 9212 by, I think, no later than 2025, and at a cost of $6.5 billion. The commitment is contingent on predictable and stable appropriations, as requested in the budget. So it is--you don't hear this very often, but it appears on budget and on time. Mr. Fleischmann. Yes, sir. Thank you. Mr. Secretary, I am concerned that vital DOE missions to support the national security and economic security of our country are targeted for deep cuts or elimination in the budget proposal. It is important to note that national security and economic security often overlap in today's world. Few program examples that are funded through EERE and could not be duplicated by the private sector are dark net research project to protect utility customers and especially the electric grid from cyber attacks; the manufacturing demonstration facility, which you saw firsthand recently, that is helping U.S. manufacturers solve difficult problems and, as a result, flourish and add more jobs; the critical materials hub targeting the scarcity of rare metals that could pose at risk to technology. How does the Department plan to support critical projects within programs that are targeted for cuts, sir? Secretary Perry. Again, Mr. Fleischmann, this is a straight down the middle of the plate, this is about prioritization. This is about picking and choosing those projects out there and making sure that they are funded. And again, we may have a healthy discussion about your priorities versus my priorities versus, you know, President Trump's priorities. From my perspective, this is right down the line of which-- the way we get back to our core responsibilities at the Department of Energy. We fund those core responsibilities. We may not get every program that you and the members of the committee want to be funded at the level you want to be funded. But I am comfortable that with the right leadership, that we have a budget in totality that we can address the needs of this country, that we continue to be cutting edge technology. You know, we haven't even talked about exascale computing yet. I know it will come up here in part of the conversation, but there is a great example; we are probably going to ask you for more resources there. Today, we just found out, the United States is not number one in super computing. As matter of fact, we are not even number two. We are not even third. The Swiss passed us up today. Ms. Kaptur, I am not happy about the Swiss passing us up. That is like--well, I won't even get into a State to State. I will just get into trouble if I do that comparison. But the point is our future and our ability to be able to be competitive in the economic field, as well as the national security field, deals with this innovation. And our funding those innovations, our funding of those projects is important, but doing it in a way that is responsible and efficient. Mr. Fleischmann. Thank you, Mr. Secretary. I appreciate your responses. Mr. Chairman, I yield back. Mr. Simpson. Mr. Aguilar. Mr. Aguilar. Thank you, Mr. Chairman. Thank you, Ranking Member. Congratulations and thank you for being here, Mr. Secretary. I appreciate you mentioning California. I am going to keep my first question specific to NNSA. I won't talk to you about California and our GDP growth of 2.9 percent last year versus Texas at 0.4---- Secretary Perry. I am not Governor anymore. Mr. Aguilar. I am not going to quiz you on those, or in 2015 when it was 3 to 1.5 percent. I will ask you, following up with what Mr. Fleischmann talked about with NNSA--and I know Ranking Member Kaptur mentioned it too--the budget that was submitted shows a significant increase in fiscal year 2018. There are significant reductions in other parts of DOE's budget, including the science accounts that were highlighted. But my question here is: Many of the labs that are funded through the science accounts also support the nuclear mission. Will this shift in funding out of science and into weapons activities undermine the nuclear enterprise and nonproliferation goals in the long run? Secretary Perry. The short answer is no. But you need to hear more than just no. And the point is that, again, I ask you humbly to allow me to show you I know how to manage. And I am not asking that just in the dark. I mean, I have got a 14-year record of being able to manage a rather large entity. And it wasn't all blue skies and smooth sailing. We had massive turndowns in the early 2000s in my home State of Texas. We had, I mean, a huge, 15, 20 percent, budget shortfall in totality. And so knowing how to move those parts of the puzzle around-- that is not to say that everything is going to be whole cloth. But it is to say that I am going to work with you, sir, to find the resources to consolidate, to be able to show you that we are working in really good faith to meet the requirements, to meet the desires of the Members of this Congress--or this committee and of Congress and the general public and to be responsive to the taxpayers. So I am comfortable we can do this in a way that does meet our nonproliferation requirements, that does meet this lifetime extension program effort that we need from our national security standpoint and to continue to have the innovation and technology that can drive our economy. Mr. Aguilar. Thank you, sir. My second question: You talked about, in your response to Mrs. Lowey, about cyber attacks and with respect to the grid and outages seen in Ukraine, you highlighted, in 2015. In recent days, we have seen reports of hackers reportedly aligned with the Russian Government developing cyber weapons, dubbed Crash Override and Industroyer, which could potentially disrupt the U.S. grid. Our modern, internet-based, internet-connected economy depends on a stable, efficient electrical grid for its productivity. With growing reports of cyber intrusions, many likely sponsored by foreign governments seeking ways to damage the ability of our grid to function, why has the DOE chosen to reduce funding for the cybersecurity and energy delivery systems, that line item, by 32 percent from previously enacted levels of 2016 and 2017? How would this affect the DOE's ongoing cybersecurity efforts in the energy sector? And before you answer, you mentioned current labs and exercises being done throughout the country. Those labs and those exercises are being done based on fiscal year 2016 and fiscal year 2017 investments. Why shouldn't we make similar investments in fiscal year 2018 if this is a priority? Secretary Perry. Yes, sir. Number one, it is a priority. And the President's executive order clearly made it a priority. Here is what I would ask you and the committee members to keep in mind, that just because there is a line item that says--and has a particular name in it and a particular direction, that we somehow or another are just going to back away from that effort. We are not. When I sit here before you and commit to you that we are going to put into place the resources in both the dollars and the staff that is required to make America as secure from a cyber attack standpoint as we can, that is what we will do. Does that mean we are going to have to, move dollars around in a budget and prioritize? Yes. That is exactly what it means. And, again, I know that this budget is the first step in the process. But I shared in my opening remarks that the life extension programs over at NNSA with our weapons system, that exascale computing, that cybersecurity, those are three of--not all of, but three of--the most important responsibilities that the Department of Energy has. And we are going to work with the private sector. We have got three of our labs that are part of what is called CyberCorps. And they are working on the cybersecurity issue now. We are in the process of talking to private sector entities that have deep tentacles into the cyber world. So my hope is that we are going to be able to leverage some private sector funding with our funding to find the solutions to these challenges on cybersecurity that confront us. Mr. Aguilar. A lot of questions and more follow up, but I am out of time. Thank you so much. I appreciate it, Secretary. Mr. Simpson. Thank you. Ms. Herrera Beutler. Ms. Herrera Beutler. Thank you, Mr. Chair. Mr. Secretary, it is a pleasure to have you with us. I have a couple of questions. I am going to attempt to get through them and then throw it open to you-- Secretary Perry. Yes, ma'am. Ms. Herrera Beutler [continuing]. And request your comments, if that is possible. And they are a little divergent, but I want to get them all in. The first one is regarding Hanford and the nuclear site. My district is downstream of Hanford. So, for me and my constituents, the cleanup effort is vital to protecting the Columbia River and southwest Washington communities from the millions of gallons of nuclear waste currently stored in underground tanks at Hanford. And, as you know, last month, thousands of Hanford workers had to take cover after a Cold War-era tunnel used to store contaminated, radioactive materials collapsed, which led to mass evacuations and serious concerns about contamination. Thankfully, no radiation was detected. But this kind of scare highlights how important it is that we get this work done. And I would like to underscore this is a Federal Government responsibility. We talk a lot about taxpayer dollars. It does cost money to get this taken care of. But this wasn't something this community did on its own. This was a Federal Government's wartime effort. So it is our responsibility to take care of this and take care of it well. I know that you have received an invitation to come out to Hanford. I am sure my colleague will reiterate that. We invite you to come. It is important. And I wanted to just ask for your commitment to maximize the Federal Government's role in cleaning up this site in a safe, effective manner. And let me move on really quickly, and then we can come back. The Bonneville Power Administration. The proposed budget calls for divesting the transmission assets of Bonneville Power Administration. And I will tell you I love how the President is focusing on infrastructure and getting America working again. It is music to my ears. This is an area where I believe--that I would submit for your consideration that BPA is self-financed and has made in excess of $32 billion in payments to the Treasury by selling power. And a quick $4.9 billion sounds like a lot. But that credit from the divestiture of those assets I think would be a poor tradeoff. Much of my district is rural and sparsely populated, but they receive reliable power because of the Bonneville Power Administration infrastructure. And the ratepayers of our region are the ones that pay for that. And so I wanted to ask if you had taken a position on BPA's divestiture of the transition assets. And, finally, there are reductions--and I agree with you, Mr. Secretary, every area of this budget should be combed, this budget and across the Federal Government, because we should be finding waste or inefficiencies. And I applaud the President for looking at that. One area where I want to submit for your reconsideration would be with regard to hydropower. You know, there are reductions in the budget for the Department's water power program. And in southwest Washington producing clean, reliable, efficient hydropower has been a staple of our energy supply since the early 1940's. And to cut the Federal investment in hydropower is concerning for our region, in part because it is such a good--I mean, to replace the Bonneville Power Administration, what they generate would take about 16 coal-fired plants. And here we have this amazing renewable energy source. And on a global scale, China plans to invest $360 billion in renewable power generation by 2020, including $73 billion for hydropower alone. I just feel like they are gobbling up assets in this area, and they want to eat our lunch and pop the sack. And we need to take this back, especially when we are talking about a renewable, load-bearing source of energy. So that is a lot to throw at you. But I wanted to get all three of those in because they are so important to my neck of the woods. And I thank you for your time. Secretary Perry. Yes, ma'am. Let me address the first one, and that is Hanford. This is one of those classic examples of the Federal Government working with the State government working with the local government. I mean, the agreement that has been signed there, particularly working with Governor Inslee, and going forward, not only do I look forward to coming out to your district to tour Richland and the Hanford site and to get a really good, hands-on look, I have been briefed relatively extensively about the project out there, about the progress that is being made. You know, I hope to be out there before the summer is up. But then in September--I think it is in September, this fall, at least, you know, you are going to celebrate a pretty big milestone in the above-grade demolition of the old plutonium finishing plant. That is going to be completed out there. So, you know, retrieving and packaging that highly radioactive sludge that is stored in the basin along the river on the central plateau, for instance, I mean, they are making some good progress. I mean, none of us like to have to deal with when, you know, Murphy and Murphy's law comes into place and something happens and you have to deal with it, that kind of came out of left field, with the tunnel collapsing. But, again, I think we got to see the real professional response, and no one was--you know, there was no individual harmed by that activity. So our continued focus on the cleanup, which is the Federal Government's responsibility, obviously coordinating with the local State government and doing it in a way that is appropriate, that remediation is going to take some time. But this country is committed to it. We will continue to do that. The second thing you asked about, which was the power agencies, I will be brief on this one. That is an interesting idea that has been discussed many times before, and I look forward to the continuing discussion and debate. So you make some very strong arguments about what they are doing, how they function. And just on hydro in general, just let me say, we will work with you, and the agency will be very open to your ideas and your directives relative to--I agree with you that we need to be looking at all-of-the-above energy approach and not taking anything--you know, unless it is just a straight-up economic issue, if it just won't work, it won't work--but not for any political reasons do we need to be removing any sources of energy. We are going to need them all to be competitive. And there are good points you make about the Chinese and what they are doing and what they appear to be committed to. So we have got our challenges out there. And I think taking a source of energy, particularly good, clean, low-emission, no- emission energy, off of the playing field is not wise for a lot of reasons. Ms. Herrera Beutler. Thank you. With that, I yield back. Mr. Simpson. Mr. Newhouse. Mr. Newhouse. Thank you, Mr. Chairman. Secretary Perry, welcome to the Appropriations Subcommittee. My colleague from her district downstream mentioned Hanford. And I am proud to say that my congressional district is home to Hanford as well as the Pacific Northwest National Laboratory, as well as many other companies that work very closely with the Department of Energy. We only have a few minutes here, but I want to make sure and just reiterate that you are cordially invited to come and visit. It sounds like you have plans to do so this fall perhaps. As a followup to my earlier invitation, just let me say I will work with you in your schedule to make that happen and look forward to doing that. A couple of things I wanted to touch on, and there are several more that we will submit for the record as well. As you know, there are approximately 56 million gallons of waste held in temporary underground storage tanks at Hanford, and adequate funding is certainly going to be needed to continue to design and construct the waste treatment plant. The request provides $8 million for WTP commissioning, although additional funding will also be needed as commissioning and startup begins. What do you envision WT's funding needs will be, particularly over the next 5 years, in order to meet the court- mandated timeline for its full operation by 2026? Secretary Perry. Mr. Newhouse, my instinct here, is that looking 5 years down the road--or, for that matter, looking 9 years down the road--is always a tricky thing in this business. But I would suggest to you that the funding levels that we see currently are most likely the minimum that would be required to reach the goals that they are looking for. Mr. Newhouse. I certainly appreciate your underscoring the Federal Government's legal and moral obligation here, and then that answer helps as well. As I said, also, the Pacific Northwest National Laboratory is in my district, and I am very proud to be able to say that. It is a powerhouse of innovation in addressing pressing national challenges. So, as you can understand, I am very concerned about the impact of the President's proposed budget as it relates to the PNNL. If enacted, the budget cuts of approximately $200 million, let me just tell you what that means in human terms: That would be a loss of about 1,000 jobs. So let me just ask, as you talked about earlier in your opening comments, what is your vision for ensuring the Department's strong, vibrant science and energy programs, and with those cuts, how does the administration plan to maintain our position as a world leader in scientific research? Secretary Perry. Yes, sir. Mr. Newhouse, as I said in my opening remarks, the commitment to science, to innovation, to technology, that is a major priority, obviously, and will continue to be. I might just add that I made mention of three laboratories that we are working on that that will be tasked-- already are tasked, but will be prioritized as we go forward on the issue of cybersecurity. PNNL is one of those. So your concern about your constituents, your concern about the observation that there could be massive loss at a lab, I don't necessarily agree with that reflection. And the reason I don't agree with that reflection is because it doesn't take into account our being able to manage, our being able to use year-end expended balances. It doesn't take into account--I think it is a very cold look, if you will, and I don't want to belabor that word. But I think it is just a very sterile look at: Here is what the budget says, here is going to be the result. You know, my intention--you know, there is not any of these labs that are going to be shut down, obviously. These labs are going to be continuing to be the future of this country from the standpoint of innovation and technology. I am comfortable that we will manage these labs in a way that continues to keep the employment levels at the level to deliver the innovation and the technology that this country is going to need. So I fully respect your concern and, rightfully so, as an elected citizen to represent your constituents. But I hope I can give you some good comfort that, from a management standpoint, we are going to do everything we can to make sure that we keep our labs functioning at the level of which I think the American citizens need and deserve. Mr. Newhouse. I appreciate that commitment on your part and look forward to working with you---- Secretary Perry. Yes, sir. Mr. Newhouse [continuing]. To make sure those don't equal the drastic numbers of loss of human resource. Secretary Perry. Yes, sir. Mr. Newhouse. So I appreciate that. Secretary Perry. Yes, sir. Mr. Newhouse. Thank you, again, for being here, and look forward to your visit in September. With that, Mr. Chairman, I yield back. Mr. Simpson. Mr. Joyce. Mr. Joyce. Thank you, Mr. Chairman. Good afternoon, Secretary Perry. Secretary Perry. Yes, sir. Mr. Joyce. Just before, you brought up the study you initiated in April to explore the critical issues central to protecting the long-term reliability of the electric grid. I understand the study will examine the evolution of wholesale electricity markets, adequate compensation for onsite fuel supply, and other factors that contribute to grid resiliency, and the effect of the continued regulatory burdens on base load power plants. I think the more we know here, the better. So I am glad to hear your Department is conducting this study. The safety and security of our communities depend on the resiliency of the electric grid. As you said in your April memo about this new study, we must provide American families and business with an electric power system that is technologically advanced, resilient, reliable, and second to none. In my district, the Perry Nuclear Plant has played a critical role in the economy of eastern Lake County for decades. The 1,284-megawatt power plant employs more than 700 workers and, in 2016 alone, contributed $14 million in State and local taxes to support local schools, police and fire departments, and other vital public services. The Perry plant is one of the largest plants of its type in the U.S. and produces enough electricity to power more than 1 million homes daily. Mr. Secretary, what potential problems or challenges would our Nation face should our base load power plants, particularly our nuclear plants, be shut down? Secretary Perry. Mr. Joyce, not just our nuclear plants, but I think any plants that are able to run that base load, we need to give appropriate oversight and concern about from the standpoint of keeping them operating. And I think it is 122 degrees somewhere in Arizona today. I know, yesterday, it was 117 degrees in Las Vegas. We may get a test this summer from the standpoint of our reliability. I hope that is not the case. I hope we don't see, brownouts in your home State, Mr. Calvert, or, for that matter, in my home State. But it is the preparation that we do today. It is the--not picking winners and losers from a political standpoint, but looking at, how do we make America's energy reliable, affordable, and sustainable? We know that requires a base load capability that can run 24/7. You know, and with that said, we are all of the above. You know, nobody expanded wind energy more than we did in the State of Texas while I was Governor. We became the number one wind- energy-producing State in the Nation. As a matter of fact, we produce more wind than all but five other countries. So I understand about having that diverse portfolio. But base load, if we are going to continue to reach out to companies and say--yesterday, I was with Secretary Ross, and we had a foreign direct investment conference. And we are talking to individuals from around the globe about coming to the United States and investing in our country and all the different opportunities that were there. If we cannot guarantee them that when they build a $1.8 billion facility here, that the power is not going to be available 24/7, then we are not going to be successful in that. So, not only is this about, as Mr. Fleischmann said, our national security, it is also about our economic security--and not shying away from and not trying to pick winners and losers. Just let the facts fall where they may, that if you are in the coal side of things, you are in the natural gas side of things, if you are in the nuclear side of things, you are in the hydro side of things, you are in the wind side of things, you are in the solar, or whatever other renewable that we would be looking at, we are going to need all of these. But it is really important, from my perspective, that we don't shy away from and talk about how important base load and that guaranteed base load is if we are going to be successful economically in this country. Mr. Joyce. And for what it is worth, Mr. Secretary, as Ms. Kaptur pointed out, we live in sort of a cold area of the country up there in Cleveland where we get the snow that comes down through Canada. And so, while we now require the air conditioning that you point out, we will also require a lot of heat. We have been darn close to brownouts because of the shutting down of the coal plants. And the ability to produce energy and have a grid that can maintain it and hold all that is produced from wind and the other ways we got it is very critical, as you well know, to the United States. So I applaud your efforts in taking this challenge forward. I have exceeded my time, and so I can't yield any back to you, Mr. Chairman. Thank you. Mr. Simpson. Mr. Fortenberry. Mr. Fortenberry. Thank you, Mr. Chairman. Mr. Secretary, good afternoon. Thanks for appearing before us. I am sorry I didn't have the benefit of your earlier testimony. I got here as quickly as I could. I understand, though, that you made some very firm comments about MOX. I have a number of items here. I would like to go through them---- Mr. Perry. Yes, sir. Mr. Fortenberry [continuing]. And perhaps you could respond one at a time. I applaud that. And this is not meant to be an indictment of anybody's past judgment as to how we were going to deal with spent fuel and in agreement with the Russians. But, nonetheless, year after year, we have sat on this committee and committed millions of dollars each year to something called cold storage. Well, that is a cold decision. It is not getting us anywhere. It is a waste of money where there are significant other priorities. And, as you said, some sort of orderly process to wind this down, perhaps some appropriate transfer of the facility to another use, in fairness to the people of that State, is absolutely necessary. Now, there is an issue in trying to secure the proper location in New Mexico. There is a residue of some type of complicated commitment to the Russians. That is a dynamic here that I would suggest perhaps we can go into another time. That is one consideration. The second, though, is related to the last comment. Is there any remnant of scientific cooperation between the Department and the Russians continuing? This is a legacy program that goes back to Nunn-Lugar, where the opportunity presented itself to try to secure dangerous loose nuclear materials. It is a proxy, potentially, for other--if it is even possible--reestablishment of some working relationship with that country. That is difficult to say in this moment. I get that. It is my understanding this is all but dead. I would like to hear if there is any remnant of cooperation going. Third, the International Atomic Energy Agency, its mission is developing in a very important, critical way. It is moving from just standard for nuclear security to a verification mission, which I think is absolutely essential. Now, like the Iran agreement or not--I didn't vote for it. Many people voted for it. Some voted against it. Many of us voted against it. Nonetheless, they are playing a critical role right now in assuring verification. And if we could ever break the impasse with North Korea, I would anticipate the IAEA would play a critical role as well. I think a continuing emphasis in investment in that important multilateral institution is not only in our own national security interests, it is in the absolute interest of international stability. If we are going to try to be a leader in nonproliferation, I think this is a gateway to doing so. I will stop there. And I have a few others, if we have time. Secretary Perry. Let me just quickly address the issue of MOX. And in my opening remarks, I made comments about that it is--and, again, I am like you. I have been here for coming on 5 months, and previous decisions, previous Congresses, previous Secretaries of Energy, I don't want to cast any aspersion on them at all. I have got a job to do. And we have analyzed this. And I cannot in good faith say that going forward with that program is wise in a number of ways, the least of which is not from a financial standpoint and from the fiduciary responsibility that we have. Dilute and dispose is a process that is proven, and it is substantially cheaper. Again, you know, I have had pretty lengthy conversations with Senator Graham, and will continue to, and the delegation from South Carolina. There are some, you know, possible legacy programs where the people of South Carolina won't feel like that, you know, here you have--you know: Thank you, Federal Government. You have strung us along here for these many years, and you are going to jerk this out from under us. But the more important part of this is that we do have a process that works. I think WIPP has already taken five of those deliveries. And so you asked if we have had any conversation with the Russians. And they announced in, I think, October of last year and then they reiterated in May of this year that they were suspending the PMDA and based on a number of strategic issues unrelated to the disposition of plutonium. But they basically have--from my perspective, they walked away from the deal. And so any useful discussions at this particular point in time, I think, are---- Mr. Fortenberry. It is over. Secretary Perry [continuing]. Useful--excuse me, useless. Mr. Fortenberry. There is no conversation going on? Secretary Perry. That is correct. And the---- Mr. Fortenberry. IAEA. Secretary Perry. Oh. Well, I can tell you I agree with your comments. I think that, you know, a relationship with them, continual engagement with the IAEA, for a lot of different issues, not the least of which is JCPOA, and---- Mr. Fortenberry. If I could make one suggestion, Mr. Secretary, even though the door with the Russians is locked, and, again, in this climate, and this--or it is shut, let me put it that way. Secretary Perry. I think that is a better descriptive term. It is just--it may not be. There may be a crack. Who knows. Mr. Fortenberry. Yeah. Because once we get through the current political turmoil and tensions, again, the cooperation, potentially, on loose nuclear materials, and the whole architecture of nonproliferation is going to depend, obviously, on other key international players, including the Chinese. And residues of cooperation on spent material can serve, I think, as a proxy to potentially rebuilding relationships in addition to being important in and of itself. Secretary Perry. Yes, sir. And I am not sure you were in when I made a statement about one of the successes that we have had at the DOE is in our nonproliferation. I think there is some--is it 30 countries? Forty. There are 40 countries that have had that highly enriched uranium removed. And so we have got some good stories to tell out there about the nonproliferation side of what we have been conducting. Mr. Fortenberry. Hopefully we will continue to project significant leadership in this area. There is a Nuclear Security Working Group here in Congress, just for your information. We look forward to---- Secretary Perry. Yes, sir. Mr. Fortenberry [continuing]. Potential dialogue with you on creative policies that continue to show leadership in this area. Secretary Perry. Consider it done. Mr. Fortenberry. Thank you. Mr. Simpson. Thank you, Mr. Fortenberry. And thank you for bringing up MOX. I knew you probably would. Now let me tell you the other side of the story. The past administration has proposed shutting down MOX and going to dilute and dispose. We have asked for the last couple of years for the Department to give us a rebaselining of MOX. They failed to do so. So we have a hard time comparing what the costs are. And I can tell you that when they did the cost estimates--this is a statement more than it is a question. Secretary Perry. Yes, sir. Mr. Simpson. When they did the cost estimates and they said dilute and dispose is going to cost X much versus something else, I can tell you that is not an accurate comparison, because there is a lot of things that they left out of the cost of dilute and dispose, such as transportation, such as keeping WIPP open and the long-term storage at WIPP, and so forth. My concern has been--and I am not advocating for MOX. I am not advocating for dilute and dispose. I want to do things in the most economical way possible. One, we do have a treaty with Russia. Russia did not walk away from the treaty. They asked to go to a fast reactor rather than the MOX facility in Russia, and we agreed. If we are going to walk away from the treaty with Russia, then let's declare it and just walk away from it. But let's not try to go around it. We have got to do one of the two. We have got to talk to the Russians at some point in time. Secondly, have we got the okay of the State of South Carolina? Thirdly, do we know that it can go into WIPP? While they have put small quantities of the same type of material in WIPP so far, that was authorized at the beginning. I don't know that all of the material that MOX is supposed to take care of can fit in WIPP without additional land withdrawals. If so, have we talked to the State of New Mexico? Are they okay with this? How about the two Senators from New Mexico? Are they okay? The one thing I do not want to have happen, as has happened so often with agreements with the Department of Energy and when they have moved down these paths, because these are long-term things, that 10 years from now, the chairman of this committee will be sitting here going: Well, we shut down MOX, and we got racquetball courts there, and they are real pretty--because that is how we can repurpose that building, make beautiful racquetball courts; I don't know what else you would do with it--but we shut down MOX. The State of New Mexico is holding us hostage. The State of South Carolina is fining us. And the State of New Mexico says: Well, we will do a land withdrawal, and we will go along with that okay, but we want every road in New Mexico paved. I don't want to be held hostage to that. And before we walk away from something that we are in the middle of, we ought to have the plan to move forward and be sure that we can do it. Otherwise, we will be sitting here in 10 years with our fingers in the air wondering what the heck we are doing and where we are going to go next. It is not that I am opposed to dilute and dispose. But I think you have got to have an honest cost comparison. And I do believe that you have to do an honest--I talked to some people at the MOX facility: 70 percent complete. Talked to some DOE people: 10 percent complete. Now, wait a minute, somebody is wrong here. Secretary Perry. Yes, sir. Mr. Simpson. So we need an honest assessment of what this is going to be. And I think to--we talk about cost overruns. I mean, I look at this budget. Frankly, and we are asking for-- what is it? Let me see if I can pull it up real quick. Oh, it is in your phone. Yeah. Last year, we required you to, when you do your budget, to give us a 5-year budget plan for NNSA. I suspect that will be coming. Last year, the 5-year budget plan that puts out what the budget request is going to be for the next 5 years, 1 year later, this year, is $225 million above what it was last year. Cost overrun, I guess you could call it that. I don't know. But we will be looking forward for a cost estimate for the 5 year for the NNSA, in the near future, when you provide that to the committee. The second thing I would like to talk about for just a second is nuclear energy in general. I do have some concerns with the budget because it is going to be difficult to be supportive of the license renewals that are going to be necessary for the current reactor fleet while also providing support for the next generation of nuclear reactors under the current budget. You talked about the need for the base load, and nuclear energy is obviously one of the things that provides an environmentally friendly, no-hydrocarbon-emission base load that is absolutely essential, I think, for the future. What is your strategy for ensuring that our research infrastructure provides adequate support for our current nuclear technologies while also enhancing the technological advances for the future reactor fleet? And along that same line, I was glad to see you put $10 million in here for developing the technical capabilities that would be needed for developing a fast reactor. I really think we need a fast reactor in this country. If we had a fast reactor, we wouldn't be talking about dilute and dispose or MOX. Secretary Perry. Yes, sir. Mr. Simpson. You know? So, anyway. Secretary Perry. I think your focus on nuclear energy from the standpoint of small modular reactors may be the next gen, if you will, the next generation, that can take us to where--I am not sure--well, yes, I am. I am sure you cannot go forward with these massive, big nuclear energy power plants that cost, you know, $6-plus billion. That is not feasible. We see the problems that we have with it now. I think for America to be stable in the nuclear, civil nuclear side of things--and the civil nuclear side of things goes to our ability to have our national security both--not only in the form of a steady form of energy, but also the technology that is driven in the civil nuclear side is also-- will be driving our weapons technology, as well, and vice versa. And, I mean, one of my great concerns about what is happening and Westinghouse and the challenges that we have there, knowing that the Chinese and the Russians are more than happy to step in, around the world, and take on the mantle of, ``We will build your nuclear plants for you,'' because, you know, America doesn't have the ability to do that. You know, two plants down in the southern part of the United States, they couldn't finish those. So, you know: Trust us; we will be there for you. That is a really bad message, and it is a really bad advent if that is where we end up. And my goal is that is not where we end up, that we, obviously, find the solutions for the Westinghouse issue in the short term and the long term, and we transition in this country to small modular reactors. That is being developed out in your part of the world. And, you know, we got--and, again, we are at the point, I think, Ms. Kaptur, when we talk about--we have been investing in NS on the basic research side, and Mr. Gates and NuScale, they are at the point of being able to move this to the commercialization side of it. And I think if we are successful and we continue to support the small modular reactor, that it can be a game changer in the nuclear side of things and bring America back to a preeminent role as leaders in the technology and innovation and nuclear energy. Mr. Simpson. Thank you, Mr. Secretary. And I didn't mean to sound so vehement on MOX. I am just saying that there is always--everybody always looks at it as just a cost issue---- Secretary Perry. Yes sir. Mr. Simpson [continuing]. And there is more to it. Secretary Perry. I don't disagree. Mr. Simpson. And every year in conference between the House and the Senate, this becomes an issue between us. And I have always said: Hey, I am willing to go there, but you got to answer these questions for me, and you got to show me that you got an agreement with the State of New Mexico, and you got to show me that South Carolina is going to be okay with this. And you got to show me that you at least talked to the Russians; if not talked to them, then decided that we are going to walk away. Secretary Perry. I don't want to get in trouble. Mr. Simpson. One of those two. I know what you mean. So I appreciate that. Ms. Kaptur. Ms. Kaptur. Thank you, Mr. Chairman. Mr. Secretary, thank you for your time today. I was glad to hear you talk about the issue of civil nuclear power production. I come from a State where this is a big issue. Congressman Joyce and I understand it well. And I really believe that the sort of current solution, which is let these sick fish fall on the States, isn't working. And someone has to think about the defense industrial base of this country and the component supply chain relative to that. And I would hope, as you think about this sector--and I have encouraged the industry to think about some of the workouts that we have had in other troubled sectors, including the automotive sector. I am concerned about what I see happening out there, and I don't really see a workable solution yet. And I am concerned about it, and I represent a region heavily impacted by it. It provides opportunity. But I don't see the leadership that I think is necessary to really help us to stabilize this industry. Maybe I am wrong. Maybe I just haven't talked to the right people. But I have talked to a lot of people. So I think your leadership might be vital. In terms of the discussions up here on base load power, we agree that investments in energy storage are critical. In terms of the study that will evaluate future technologies, such as distributed--will distributed energy and storage be a part of that study for the base load power work that is being done? Secretary Perry. Yes. I mean, the short answer is yes and, this goes back to what we happen to think, and I have for some time, well before I took this current position I am in, that storage is kind of the Holy Grail. And if we figure out how to store energy, at that particular point in time, it gives us such a broad, but, again, we don't yet, and there is still research going on. There is still Jell-O being thrown at the wall, so to speak. But, you know, we support that. Ms. Kaptur. Thank you. I may be the only member of this panel that is concerned about the Strategic Petroleum Reserve. But I do want to make a comment about it. And I don't want us to be a country that is penny-wise and pound-foolish. We have been at war 16 years now, and one of my objectives in serving on this subcommittee is to make sure that we aren't just 100 percent energy independent here at home, but 125 percent. Okay? So that is my goal. The Strategic Petroleum Reserve has played a role. We know that every time gasoline goes over $4 a gallon in this country, we go into deep recession; my part of America gets really walloped hard. And so I become very uncomfortable with proposals to sell off the majority of crude oil. A, we are at war. B, we have real enemies. And we can't anticipate what will happen in the future. So I just wanted to say that I have a concern about this particular proposal in your budget. You are on the National Security Council. You can raise a lot of questions there. But I am very uncomfortable with this. So I just wanted to express that opinion. You don't have to answer any questions. I think it is a mistake. And it is certainly a mistake to sell it at low prices. But when you are at war, I think that you can't anticipate what is going to happen out there. Secretary Perry. Ms. Kaptur, not as much to answer, I am very familiar with that facility because part of it is in Texas and part of it is in Louisiana. There are four of them and I think the idea of being able to consolidate down to two rather than four, there is some sensibilities about that because of the cost to upkeep. But here is another--this is coming back to you and the committee more as a question about what do you all think about. If we consider pipelines to be a form of storage, if you will, if there is crude oil in a pipeline, then I consider that to be again, this is not apples and oranges but if your point is we need to have this access to our crude that we have control of. The world has changed in the last 10 years, and America's ability to go retrieve these molecules, these hydrocarbon molecules, from places that we never thought we could get them prior to 10 years ago because of hydraulic fracturing and directional drilling. And so, and, again, I think the Dakota Access pipeline, full, is like 5 million barrels. If we are building more pipelines in this country so that we have better transportation and we have connectivity and we have the ability to deliver product to different places and economic development comes because of that and what have you, then maybe that does soften a little bit your concern about, you know, reducing some of the supply. I am not asking, you know, for an answer here. I am just saying, should we think about that as an opportunity? My role is to look at ways that we can consolidate that we can save some money. This may be one of them. Just a statement. Ms. Kaptur. Thank you. Secretary Perry. Yes, ma'am. Ms. Kaptur. Thank you very much. I think we need more review on that one. And I appreciate your openness. Let me ask the Department, in terms of how you will respond to congressional inquiries as Secretary, is there a policy that you have been given or guidance that would prohibit you or delay responses if, for instance, I were to send a letter over to the Department of Energy, versus our chairman, someone who is on a subcommittee or a full committee? So is there any guidance that has been given that you must adhere to that we might not be aware of? Secretary Perry. My history as a chief executive, being the Governor of the State of Texas, is when a member of the legislature asked me for something, I got it to them on a timely basis. I have no reason to think that, quite frankly, any reason, if you send a letter asking for information to the Department of Energy, and you didn't get a response, I hope what you will do is call me first, and then we will go find out who didn't write you back in a timely way. Ms. Kaptur. Okay. But there is no policy or guidance prohibiting or delaying responses to Democratic Members of Congress? Secretary Perry. You know, I used to be a Democrat. Ms. Kaptur. We will invite you back at the right moment. Secretary Perry. I was going to tell you: There is still time for you, ma'am. In all seriousness, not at all. If you find that the agency is not responsive, seriously, a phone call to me is all that will be required. Ms. Kaptur. Thank you. Thank you, Mr. Chairman. Mr. Simpson. Mr. Calvert. Mr. Calvert. Thank you, Mr. Chairman. You mentioned the small module reactors. As a Nation, we have spent a considerable amount of resources into research on fusion. I know that the results from that have been less than spectacular. But, as you know, you were in France recently, we have a Project ITER, international thermonuclear reactor, that we have put a lot of resources into--and along with a number of other nations. I just bring this up hoping at some point in the future we can resolve this issue of fusion--which, you know, from President Eisenhower on, we have been looking to resolve. On the issue of computer capability. I would assume, and I would hope, that the Department of Energy works closely with NSA and the Department of Defense on what they are doing to develop computer technologies and I hope there are no redundancies in research that is being conducted as far as that is concerned. Secretary Perry. Mr. Calvert, I wanted to turn over here because I want to give you some numbers that I think are really important about exascale. And you are absolutely correct. And it is not just about, you know, wanting to wear the crown of having the fastest computer with the most capacity. What our national labs and the partnerships that we see out there, and I will give you one example of something that I would suggest every one of you is supportive of, and that is our veterans. The national labs are partnering with private sector and with other agencies of government, because of this massive computing capability that we have and our ability to keep up, whether it is on the NNSA side with our weapons, or the VA who came to us last year, well before I got there. My support of veterans is known. When I found out that we had the potential here--it is called the Million Veteran Project. We are asking 1 million veterans to give blood and volunteer their medical records so that we can do DNA testing. VA is running that program using DOE computing capability so that we are going to be able to tell a million veterans: Such as a young female military veteran, who has a DNA marker for breast cancer or for cervical cancer, or a young man who has the potential in his DNA marker for prostate cancer and how they could prepare for that. I mean, this is really life-changing and a quantum leap forward from a medical standpoint, from my perspective. And DOE's computing capability is a quality of life issue for our citizens. And then you take it over into the scientific side, there is this issue of fusion that you talked about. And, you know, again, that is kind of a Holy Grail on the side of energy, as well that we have been pursuing for a long time. But our supercomputing capability may be what allows us to crack that. And so our investment in that is really important. We are requesting $508 million. That is $249 million over fiscal year 2017 to accelerate the delivery of an exascale computer by 2021. That is going to Argonne. And then by 2022, there is a second machine going to Oak Ridge. And it is totally different architecture. I mean, that is kind of the fascinating thing, is so you have got exascale, which is going to Oregon; then you got the next gen, which is going to Oak Ridge. That will, again, put the United States in its rightful place, from my perspective, as being the most technically advanced supercomputing Nation on the globe. Mr. Calvert. Thank you, Mr. Chairman. Mr. Simpson. Mr. Fleischmann--or, Mr. Aguilar. Sorry. Mr. Aguilar. No problem. No problem. Happens all the time, Mr. Chairman. Mr. Simpson. You are so far down there. Mr. Aguilar. It is like a 5-9 caucus he and I occupy. Don't worry. Yeah. Voice. You guys look alike, right? Mr. Aguilar. I appreciate it. Thank you, Mr. Secretary. I wanted to get specific on something I saw in an appendix to NNSA. A recently released GAO report raised some concern about cost estimates associated with our nuclear modernization programs and said they might be understated. I will use the B61 life extension program, B61-12, as an example. One cost estimate produced by NNSA Office of Cost Estimating and Program Evaluation points out that it could cost $2.6 billion more than previous estimates to complete this program. But the original baseline from NNSA's fiscal year 2017 Stockpile Stewardship and Management Program Plan was just released in March of 2016. So here is my question: The discrepancy between these, in such a small window of time, do you feel that program cost estimates provided by the Office of Cost Estimating and Program Evaluation show that it is improving the program and it needs to change or expand? As a followup, what are some of the implications to the variety that we see in the cost estimating? Secretary Perry. Mr. Aguilar, let me get back with you on that---- Mr. Aguilar. Sure. We can put something into the record and ask---- Secretary Perry. I want to give you an answer, but I can't because I am not privy to the discrepancies there. Mr. Aguilar. Sure. And we will put it into the record---- Secretary Perry. Yes, sir, please. Mr. Aguilar [continuing]. And ask your staff to get back to us. Sticking with nonproliferation, the fiscal year 2018 budget shows a reduction in these programs, as we have highlighted. Will these reductions continue in future budgets? The chairman alluded to a multiyear outlook that the agency will provide. Does this say anything about U.S. policy towards nuclear nonproliferation? And is NNSA--do you feel this sets us down the right path? Secretary Perry. Here is one of the things, and I mentioned this earlier, that because of our successes that we had with some of the nonproliferation programs and I think the backing out of those, and what I am talking about are 40 countries and the eastern European countries that have had successful reductions of that highly enriched, and materials removed from them, that there is some reductions in the nonproliferation budget because we have been successful. Now with that said, I am not telling you that going forward we are going to continue to have reductions. What I will tell you is that the agency is as committed to nonproliferation as its ever been. We will manage the dollars and we will manage the programs and, obviously, working with the Members in Congress, in a way that is acceptable to you and to our partners in this. Mr. Aguilar. I appreciate it. Thank you. Continue down to the electrical grid that we have discussed about. As we have talked, the electric power system is vital and efficient to our economy and the capabilities of our system. The smart grid improvements are widely considered essential. DOE has changed the smart grid research and development program to the resilient distributions system program and decreased its budget by 71 percent, compared to fiscal year 2016, enacted, and 80 percent from fiscal year 2017, enacted. Given those considerations, can you talk about the rationale for the proposed reduction under this category, the smart grid category? Secretary Perry. Yes, sir. Obviously, managing the agency, and again, I go back to I hope that the committee will have some flexibility when it comes to being able to move dollars around line item to line item. I am a big supporter of smart grid. We did some major projects in the State of Texas. You know, I think one of the things that we do need to do is, not necessarily from just a straight up funding standpoint, but best practices go back to the States and have the Governors and the legislators aware of the programs that are out there to be able to let them manage their grids in particularly smart meters and those types of technologies that we can get out into their hands. So to answer your question about are we going to be able to address the smart grid, you know, the smart meters, the different innovations and technologies, I feel comfortable that we will. And again, this being the first step in this budgetary process, I feel comfortable. Mr. Aguilar. I appreciate your answer. And this is the second time you have mentioned, you know, the flexibility. And I want to let you know and convey that I trust your management ability, but I do feel, you know, there are rules within the committee, and that is between the ranking member and the chairman and your agency, on how money gets moved around based on those priorities. Secretary Perry. Yes, sir. Mr. Aguilar. That is why we take this budget process so seriously. Secretary Perry. Yes, sir. Mr. Aguilar. That is why we dig in and we want to get this right, because we want to give the guidance to your agency so you don't have to come and ask for movement. But that is your prerogative and we trust that leadership. So thank you so much. I appreciate the time. Secretary Perry. I look forward to working with you, sir. Mr. Simpson. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. Mr. Secretary, I would like to thank you for a very positive, insightful, and thoughtful hearing today. And my colleagues on both sides of the aisle, I think we did an outstanding job. And we have touched on the depths and the breadth of all the different things that the Department of Energy touches, so I want to thank everybody for that. An important issue I promoted, Mr. Secretary, for years is a closer working relationship to alleviate some of the Department of Energy's unintended consequences on local communities, especially sites that are close to population areas. Land transfers, aging infrastructure, like the Oak Ridge water plant, and environmental challenges require a closer partnership between DOE and its host communities. I would like to see the Department do more. Mr. Secretary, will you and your staff work with me to encourage innovative solutions and more effective partnerships between the Department offices under you and our local community, sir? Secretary Perry. Yes, sir. And, you know, having visited with Oak Ridge and both spent the night there and driven through the community and recognizing how it is not unlike what I think I am going to see when I go to Richland. These are communities that are symbiotic. The city of Oak Ridge and the Y-12 facility, the uranium processing facility, exist because of each other. And I think having a respect, both ways, is really important. And you have my commitment that not only am I going to be open to your suggestions, but the Mayor of Oak Ridge, the Governor of Tennessee, and the Congressman that represent that area, to manage the challenges, but to also recognize the extraordinary potential that is there for those communities as well as to coordinate with them and not be making decisions unilaterally. There is a great opportunity and I am very open to let's talk. Mr. Fleischmann. Mr. Secretary, thank you so much. And it is mutual. You will find that not only from me, from our Senators, and also from our local communities and elected leaders. Thank you, sir. Mr. Chairman, I will yield back. Mr. Simpson. Mr. Newhouse. Mr. Newhouse. Thank you, Mr. Chairman. Mr. Secretary, I appreciate the extra time here so we can really drill down into some deep parts of the Department's responsibilities. I wanted to talk a little bit about the building technologies office, which as you probably know, has saved many Americans, over time, billions in energy costs. It certainly has been able to bring together a collaboration between, in my State, the University of Washington, WSU, as well as the Pacific Northwest National Laboratory in helping connect campuses to test energy savings technologies. So could you talk a little bit and explain how these programs are going to be able to continue under the current budget proposal in order to see the benefits in both private and public sectors? Secretary Perry. Yes, sir. And I will be pretty brief and straight to the point here. You know, these funding opportunity announcements that will continue to come out of the agency and working with the local universities, and the private sector, you know, are we going to have a reduction of the total number of dollars? Yes. But I think that is where it gets down to us working together and prioritizing what are the real core missions of the Department of Energy, and are these projects, you know, worthy to go forward? And I did that, Mr. Newhouse. As the Governor of Texas, we had a number of programs, both with emerging technology, in particular, where we had basically a private sector review board that looked at the projects, made the decisions about, you know, whether or not they should go forward and did they meet the standards that we put in place. I know we have a group not unlike that. I may want to fine tune it. I may want to, you know, ask for the input of the committee here as we go forward as we do that. But we will continue to be looking. I think the core mission of the Department of Energy is to promote innovation and technology. I understand the NNSA's role and what they have to do, but those National Labs, and working in concert with our universities and the private sector out there, they have the potential to continue to really make a difference in people's lives. Does that mean we are going to get every one of these projects right? Does it mean that every one of these is going to, you know, commercialize into some great next big thing? No. But I think it is our responsibility and I think it is our duty to continue to look for the ways to promote innovation, technology. And, you know, that is my philosophy. I am historically used to doing it and, you know, not every project is going to get funded. I understand that. And I look forward to folks coming forward with their best ideas and their best ideas about how to fund these projects, and then we will collectively make a decision about what direction we will go. Mr. Newhouse. I appreciate that. I also had one question too on payments in lieu of taxes, the PILT program that has been in place for many decades. I believe it is significantly reduced or even eliminated at least four counties surrounding Hanford reservation. Could you talk about your philosophy there and perhaps the rationale behind that? Secretary Perry. Well, since I didn't completely write all of this budget, sir, I will, in that particular area, if you will allow me the flexibility one more time to get back to you and give you an appropriate answer, rather than just taking a wing at it here. Mr. Newhouse. Okay. We will have a lot of time to talk when we are touring the Hanford site. Secretary Perry. Yes, sir. That we will. Yes, sir. Mr. Newhouse. All right. Thank you, Mr. Secretary. Mr. Chairman. Mr. Simpson. Mr. Joyce. Mr. Joyce. Thank you, Mr. Chairman. Mr. Secretary, I am troubled that the United States no longer has any capacity to enrich uranium, and the current plan is not to restore this capacity for 21 years. Do you agree that uranium enrichment is vital for our national security, and that restoring enrichment capacity in the near term is in the national interest? Secretary Perry. As a general rule, yes, sir, I do. I think that, from a national security standpoint, that having the ability to do that is in our national security interest. With that said, I think we have a fairly robust stockpile at this particular point in time. But if we are to go forward with these life extension programs and, for that matter, on the civil nuclear side, we are going to have to have a conversation here in the Halls of Congress about when and if and how that does go forward. Mr. Joyce. Well, if, in fact, you were going to have that conversation, there are certainly some fellow Buckeyes in southern Ohio, from the Piketon plant, who would love to have that conversation with you, as well as Ms. Kaptur and Mr. Ryan, who are also on appropriations. Secretary Perry. Yes, sir. Mr. Joyce. Thank you. I yield my time back. Mr. Simpson. Mr. Fortenberry. Mr. Fortenberry. Thank you, Mr. Chairman. Mr. Secretary, I just want to turn very briefly back to MOX. What I don't want to see--please, I am just lowering your temperature--what I don't want to see is what the chairman alluded to, another conference committee this year that says, oh, well, we just couldn't make a decision and let's put another $300 million more into it, when we have got all kinds of other places to park that kind of money for important national values and objectives. So to the chairman's point, we don't want to waste money; the projection of the project is very tenuous. Yet the deeper answers just seem to be allusive, will New Mexico take it. Is there a dormant agreement with the Russians which will be complicated by this? Is the fast reactor a more medium-termed decision that could unwind some of the complexities of this? Why don't we just make a commitment quickly to get some answers to these things so we have a true cost comparison versus treading water, throwing more hundreds of millions of dollars at it, with an ever increasingly remote possibility this thing will ever get built. I think that is just the best thing to do. Secretary Perry. Yes, sir. And to direct answer that, that is what we are attempting to do. I mean, we are---- Mr. Fortenberry. Okay. We have got about 90 days. Secretary Perry. Right, I understand that. And I have had multiple meetings. I have been on the job now since the 2nd day of March. And MOX is--I know more about MOX than I ever thought I would and ever wanted to know, to tell you the truth. Mr. Fortenberry. Well, I feel the same way. I am just going down line items, what is this? Secretary Perry. That is beside the point. You are absolutely correct that we as a country need to get the answers. We need to know how much this is going to cost with some amount of certainty. And, Mr. Chairman, you are right. I mean, it is stunning the difference in the numbers that you can get. You know, the Corps of Engineers has their estimates. And, you know, I want to sit down with the contractor, and you know, Senator Graham shares with us this is what the contractor has said that they can get this done for. And then we have letters that basically do not agree with that. So-- Mr. Fortenberry. Well, you can imagine our frustration---- Secretary Perry. Yes, sir. We need to get some people in a room and figure this out. Mr. Fortenberry. Okay. The second point. Back to nonproliferation. We have also had this conversation last year. This is a hallmark, I think, of smart, prudent public policy to have an accent mark on the--again, an architecture for nonproliferation. If one of these things goes off in the world, it doesn't matter the healthcare debate, it doesn't matter the budget. Just one. And the purpose of a nuclear weapon is to prevent nuclear war. And so yet nuclear weapons are back. China's increasing, Russia's increasing, we know the situation in North Korea. And other areas of the world, actually, over the last 25 years, thankfully, have pulled back from the precipes, leaving us with spent nuclear material, leaving us with dangerous material out there. And a number of these programs have been very successful in pulling that back, which again is related to mitigating a terrorist threat. But it all gets combined, I think, into creating a culture in which this is a decided priority, and we project that on the international stage. So in that regard, please, let us think creatively with you. I completely agree with the last administration's emphasis on nuclear security summits. I think those were successful. They began to get more and more multilateral buy-in to the issue of securing material, but it also creates, again, the gateway of the raising of consciousness internationally as to just how dangerous of a situation we are entering into with international stability and more and more weaponization and the technology readily coming out of the bottle. Secretary Perry. Yes, sir. Mr. Fortenberry. So if there is one thing that you can do as Secretary to pull us back from this precipes, we will do whatever we can to creatively think with you. I think that is the most valuable thing we could do together. Secretary Perry. Yes, sir. Consider us being a partner. Mr. Fortenberry. Thank you, sir. Mr. Simpson. Thank you. That was a good idea. If you have a MOX summit, I will be there, because we have been debating this for so long and we need to make some final decisions. But I would point out that we don't save $340 million by not funding MOX. There is still $270 million in there for cold storage, so--and put it in cold standby or whatever. So it is a perplexing problem. And Mr. Alexander, Chairman Alexander and I have spent a lot of time debating and arguing and so forth. I understand where he is coming from, he understands where I am coming from, but we need to make some decisions. Secretary Perry. Yes, sir. Mr. Simpson. We need to make some decisions on that. We need to make some decisions on a few other things that are perplexing within the complex. And I want to tell you that we when you decide to go to Hanford, I would be happy to go with you. That is a great place to go. I know a great restaurant. We can have some good times. You know, everybody--when we think about Hanford, we always think about the cleanup, and it is huge cleanup issues up there. But we forget about PNNL. PNNL is a great laboratory. It does some great work. So I was glad to see that Mr. Newhouse brought that up. But thank you for being here today. We look forward to working with you as we go through and address some of our concerns and some of your concerns within this budget, that we will get a budget that you can work with and do the job that you have been hired to do. We appreciate it. Thank you. Secretary Perry. Thank you, Mr. Chairman. Thank you, members. Mr. Simpson. The meeting is adjourned. [Questions and answers submitted for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]