[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] DEPARTMENT OF ENERGY: MANAGEMENT AND PRIORITIES ======================================================================= HEARING BEFORE THE COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS SECOND SESSION __________ JANUARY 30, 2018 __________ Serial No. 115-45 __________ Printed for the use of the Committee on Science, Space, and Technology [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://science.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 28-932 PDF WASHINGTON : 2018 ----------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. COMMITTEE ON SCIENCE, SPACE, AND TECHNOLOGY HON. LAMAR S. SMITH, Texas, Chair FRANK D. LUCAS, Oklahoma EDDIE BERNICE JOHNSON, Texas DANA ROHRABACHER, California ZOE LOFGREN, California MO BROOKS, Alabama DANIEL LIPINSKI, Illinois RANDY HULTGREN, Illinois SUZANNE BONAMICI, Oregon BILL POSEY, Florida AMI BERA, California THOMAS MASSIE, Kentucky ELIZABETH H. ESTY, Connecticut JIM BRIDENSTINE, Oklahoma MARC A. VEASEY, Texas RANDY K. WEBER, Texas DONALD S. BEYER, JR., Virginia STEPHEN KNIGHT, California JACKY ROSEN, Nevada BRIAN BABIN, Texas JERRY McNERNEY, California BARBARA COMSTOCK, Virginia ED PERLMUTTER, Colorado BARRY LOUDERMILK, Georgia PAUL TONKO, New York RALPH LEE ABRAHAM, Louisiana BILL FOSTER, Illinois DANIEL WEBSTER, Florida MARK TAKANO, California JIM BANKS, Indiana COLLEEN HANABUSA, Hawaii ANDY BIGGS, Arizona CHARLIE CRIST, Florida ROGER W. MARSHALL, Kansas NEAL P. DUNN, Florida CLAY HIGGINS, Louisiana RALPH NORMAN, South Carolina C O N T E N T S January 30, 2018 Page Witness List..................................................... 2 Hearing Charter.................................................. 3 Opening Statements Statement by Representative Lamar S. Smith, Chairman, Committee on Science, Space, and Technology, U.S. House of Representatives................................................ 4 Written Statement............................................ 6 Statement by Representative Marc A. Veasey, Committee on Science, Space, and Technology, U.S. House of Representatives........... 8 Written Statement............................................ 10 Statement by Representative Eddie Bernice Johnson, Ranking Member, Committee on Science, Space, and Technology, U.S. House of Representatives Written Statement............................................ 12 Witnesses: The Honorable Paul Dabbar, Under Secretary for Science, U.S. Department of Energy Oral Statement............................................... 14 Written Statement............................................ 16 The Honorable Mark Menezes, Under Secretary of Energy, U.S. Department of Energy Oral Statement............................................... 24 Written Statement............................................ 26 Discussion....................................................... 35 Appendix I: Answers to Post-Hearing Questions The Honorable Paul Dabbar, Under Secretary for Science, U.S. Department of Energy........................................... 70 The Honorable Mark Menezes, Under Secretary of Energy, U.S. Department of Energy........................................... 83 DEPARTMENT OF ENERGY: MANAGEMENT AND PRIORITIES ---------- TUESDAY, JANUARY 30, 2018 House of Representatives, Committee on Science, Space, and Technology, Washington, D.C. The Committee met, pursuant to call, at 10:08 a.m., in Room 2318 of the Rayburn House Office Building, Hon. Lamar Smith [Chairman of the Committee] presiding. [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Smith. The Committee on Science, Space, and Technology will come to order. The gentleman from Texas, Mr. Veasey, is going to substitute for our Ranking Member today, and we will recognize him momentarily. But I do want to say that the Chair notices the excellent turnout on his left and appreciate being able to look down the row and see everybody here just about, so I appreciate the good attendance. Without objection, the Chair is authorized to declare recesses of the Committee at any time. And welcome to today's hearing entitled ``Department of Energy: Management and Priorities.'' I'll recognize myself for five minutes for an opening statement and then the Ranking Member. Today, we welcome Mr. Paul Dabbar, the Under Secretary for Science; and Mr. Mark Menezes, the Under Secretary of Energy, to testify about the Department of Energy's priorities under this Administration. As the Committee awaits the President's fiscal year 2019 budget request, our discussion today will focus on broad priorities and management at the DOE. DOE is the leading federal sponsor of research in the physical sciences and is a world leader in basic science research and technological development. Our witnesses today are responsible for managing the bulk of the DOE programs within the Science Committee's jurisdiction, including over $9 billion in civilian research, development, demonstration, and commercial application programs, as well as the DOE national labs. This amounts to 1/3 of the DOE's budget. At the World Economic Forum in Davos, Switzerland, last week, Secretary Perry explained that ``America First'' means maintaining American competitiveness around the world and being the lead provider of energy resources and technology on the global market. Significant investments in basic science research by foreign countries like China threaten America's global standing as the leader in scientific knowledge. Without continued investment in basic and early-stage research at the DOE, the United States will lose its global technology edge. DOE must also invest in the research infrastructure that brings the best scientists in the world to the United States. That's why this Committee has advanced bipartisan legislation to upgrade and construct best-in-the-world light sources, photon sources, and neutron sources to facilitate discovery science. The House has repeatedly passed legislation to authorize the construction of the Versatile Neutron Source, which would ensure that the next generation of nuclear reactors can be developed here in the United States. Last month, Secretary Perry announced a reorganization of the Department's management structure. This reorganization restores the statutorily directed role of each Under Secretary, prioritizing the science and energy missions within DOE. This approach refocuses DOE civilian research programs on the basic and early-stage research that industry cannot perform. The two Under Secretaries share oversight responsibility for the national laboratory system. DOE's national labs attract the best scientists, engineers, and entrepreneurs from around the world, and it is critical that the system of labs operate efficiently. Our witnesses today also share jurisdiction over the many functions designed to foster cooperation across DOE programs such as crosscutting research initiatives, energy innovation hubs, and multipurpose research facilities. We look forward to hearing from our witnesses today about how they will maximize cooperation between their respective programs and work to prevent unnecessary duplication or cost overruns at the Department. By investing wisely in basic and early-stage research, the Department can achieve its goal of scientific discovery and technological breakthroughs for future generations. [The prepared statement of Chairman Smith follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Smith. Before I recognize the gentleman from Texas, let me just say to my colleagues that I have a Judiciary Committee markup going on, and I'm going to need to leave after my questions. And the gentleman from Texas, the Chairman of the Energy Subcommittee, Mr. Weber, will stand in as acting Chairman. I now recognize the substitute Ranking Member, the gentleman from Texas, Mr. Veasey, for his comments. Mr. Veasey. Chairman Smith, thank you very much. And I would like to let everybody know if you have not already heard that the Ranking Member of the Committee, Eddie Bernice Johnson of Dallas, she is at home. She lost her brother that was the youngest in their family. That's the second sibling that she's lost in the last three months, and so I hope you that will keep her in her your thoughts and prayers. Also, Chairman Smith, I want to thank you for holding this hearing and thank you, Under Secretary Dabbar, and Under Secretary Menezes, for being here today. I'm very pleased that we are finally beginning to hold hearings with Senate-confirmed representatives of the Administration that are here testifying today. I hope that means that we'll finally have Secretary Rick Perry, our former Governor of Texas, in this room shortly after the President's 2019 budget is released, which was the common practice for this committee before last year. There are a wide range of issues regarding direction and management of DOE's incredibly important portfolio of facilities and programs that I hope we will be able to discuss in depth this morning. I'd like to start off this conversation by touching on just a few of them. And at this point it shouldn't surprise anyone here that I'm very concerned, as are many, about the Department's proposed budget for 2018. I'm sure I speak for many of my Democratic colleagues when I say that I am even more concerned about what it implies about the Administration's priorities going forward. That budget proposal would cut sustainable transportation and renewable energy by 70 percent and energy efficiency by 80 percent. It would also cut critical research on the electric grid and fossil fuels in half. It would cut the Office of Science by 17 percent and nuclear energy by 30 percent, and it would eliminate ARPA-E, the Loan Programs Office, and our entire portfolio of Energy Innovation Hubs. All of these programs have strong records of success to justify not only their existence but increased investments. These proposed cuts make no sense at all. As many of my colleagues have pointed out before, we won't balance the budget by slashing our research funding. For an insignificant short- term deficit reduction, we will make the United States less competitive, lose jobs, harm our public health, and hobble our international R&D partnerships. The Administration rationalized these cuts by suggesting the private sector would simply start funding these key research areas once the Federal Government cuts removed them from its budgets. But it is not based on anything resembling a rigorous review process, let alone reality. In fact, Administration officials confirm that they did not engage with the private sector at all. They didn't engage with them at all to determine what industry would be able or willing to pick up. Mr. Dabbar, Mr. Menezes, I recognize that you are really not responsible for this proposal, given that you were only confirmed in November, but I hope that under your leadership that we can get back to reality and continue our strong support for these high- value research programs. They are vital for American competitiveness, our quality of life, and our scientific leadership. I would also like to get a much better understanding of rationale behind the new organizational structure for the Department that was announced in December. In my view, the reorganization led by Secretary Moniz made a lot of sense. Having a single Secretary for science and energy enabled improved coordination and collaboration across DOE's nonmilitary research enterprise. Specifically, it helped break the historical unproductive stovepipes between the DOE's Office of Science and the Applied Energy Offices. So it is not clear to me why breaking them up into separate pieces under different Secretaries again is a step in the right direction. And putting the Department's daunting environmental management mission, which previously had its own Under Secretary under the science portfolio adds its own challenges. I understand that Mr. Dabbar has a unique background in overseeing those issues, but then perhaps it would have made more sense to stick with the previous structure and make him Under Secretary for management after all. But whatever DOE organizational charts says, I hope we can all find common ground on ensuring that the Department's science and energy innovation pipeline is as strong as possible. I look forward to working with the both of you on these issues in the coming months and years ahead. And once again, thank you for being here to testify, and I hope that we will get the Secretary soon. And again, Mr. Chairman, I yield back my time. Thank you. [The prepared statement of Mr. Veasey follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [The prepared statement of Ranking Member Eddie Bernice Johnson:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Smith. Thank you, Mr. Veasey. I'll introduce our witnesses, and the first is the Honorable Paul Dabbar, Under Secretary for Science at the U.S. Department of Energy. Mr. Dabbar serves as the principal advisor on fundamental energy research, energy technologies, and science. Prior to confirmation as Under Secretary for Science, Mr. Dabbar worked in operations, finance, and strategy roles in the energy sector. He received a bachelor of science from the U.S. Naval Academy and an MBA from Columbia University. Our second witness is the Honorable Mark Menezes, Under Secretary of Energy, at the U.S. Department of Energy. Mr. Menezes served as the Department's principal advisor on energy policy and on a wide array of existing and emerging energy technologies. Prior to being confirmed as Under Secretary of Energy, Mr. Menezes was an executive with Berkshire Hathaway Energy in the Washington, D.C., office. He received both his undergraduate and juris doctor degree from Louisiana State University. We welcome you both, and, Secretary Dabbar, if you'll begin. TESTIMONY OF THE HONORABLE PAUL DABBAR, UNDER SECRETARY FOR SCIENCE, U.S. DEPARTMENT OF ENERGY Mr. Dabbar. Thank you, Chairman Smith, and thank you, Acting Ranking Member Veasey and Members of the Committee. It's an honor to highlight the mission of the Under Secretary of Science, which includes the Offices of Science, Technology Transitions, Environmental Management, and Legacy Management. America's global leadership in science remains dominant, and I look forward to recounting to you how DOE is fueling the country's scientific future. In the areas covered by the Office of Science, these are very exciting times for our national lab complex and our programs. Our programs cover the world's cutting-edge research and high-energy nuclear and plasma physics, materials in chemistry, biological and environmental systems, next generation high-performance computing, and basic research for advancement in new energy technologies. They are on the cusp of significant progress for the Nation and the world. Let me just tell you about a fraction of the major innovation your national labs are executing on. In the Office of Science jointly with the Applied Energy Offices we have more than ten different battery and storage technologies with capacity to outperform lithium ion batteries used in the current market. The lab at Argonne has even branded their program Beyond Lithium-Ion. Who says scientists can't market? In the area of bioscience, we have built on our historical leadership in the Human Genome Project and gene editing to move whole segments of DNA from one organism to another. This is a breakthrough which has continued our leadership in microbial biotechnology that will allow for manufacturing of therapeutic drugs in a way never imagined a few years ago. This will also advance significant possibilities in food applications, environmental remediation, and biosecurity. We even have the ability to store data for computers in DNA. Here are some other very exciting examples for our upcoming projects: In advanced computing, we're on the cusp of completing the first of three exascale computers that will conduct 10 to the 18th calculations per second. With this capability we will be able to model and evaluate data in complex science areas such as elementary particles for research for quarks, gluons, and neutrinos. We will also have significant jumps in practical applications such as using the world's leading deep neural networks and artificial intelligence capabilities far beyond what is commercially available for cancer research. In the areas of particle physics, we are nearing the completion of the world's largest neutrino experiment, which will generate and shoot neutrinos from Fermilab outside Chicago up through the earth to our detector facility deep underground in South Dakota, moving forward humanity's knowledge of this evasive particle. In the area of astrophysics, we're in the process of finishing construction of several new detectors to collect data on the amount of dark energy in the universe and hopefully detect dark matter particles directly. And finally, we're at the world's cutting-edge for quantum computing development, potentially developing computers to use electrons or even photons of light for calculation medium rather than transistors using 1's and 0's. These are very exciting times. The national labs have rightfully earned the title from Secretary Perry as the crown jewels of the Department. As you know, the Department grants over $3 billion a year also to universities all over the country in all of your States. We seed the country's next generation of research and students all over the country every year. I encourage each of you to visit even more of the labs. There are far more truly amazing innovations than I have time to list through here today, and I would be glad to facilitate any additional visits anywhere in the country for any of you. In the area of advancing technology transitions, this is an area of particular passion for me and a core area for the Department. I look forward to leading the Energy Investor Center, as well as the other DOE programs and our national labs to coordinate all our department efforts in this area and look forward to facilitating engagement with investors and industry. And in the area of environmental management, we continue to execute on many long-lived cleanup projects, and we are tackling projects long-delayed such as vitrification in Hanford and looking at options for more closeouts. In conclusion, human development has hinged on our innate ability to explore. Our organization has some of the top explorers in the history of the world: Einstein, Oppenheimer, Lawrence, Rickover, and Fermi. This organization and more specifically the special people in the Department and its labs are now the legacy of that foundation, we are posed to use our creativity and resources to explore a little more about that unlimited universe, and we will maintain the standard advocated by Einstein to be passionately curious. Thank you, and I'll look forward to answering your questions. [The prepared statement of Mr. Dabbar follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Smith. Thank you, Secretary Dabbar. And, Secretary Menezes. TESTIMONY OF THE HONORABLE MARK MENEZES, UNDER SECRETARY OF ENERGY, U.S. DEPARTMENT OF ENERGY Mr. Menezes. Chairman Smith, Ranking Member Veasey, and Members of the Committee, thank you for the opportunity to testify before you today along with my colleague, Under Secretary for Science Paul Dabbar, on behalf of the Administration on the Department of Energy's management and priorities. And we understand we are the first confirmed appointees to appear before this committee. In mid-December, Secretary Perry announced a realignment, the goal of which was to set forth a reporting framework that allows the Department's organizational statutes--that follows the Department's organizational statutes, advance the Administration's priorities, best address the Nation's present and future energy challenges, and refocus on its core missions of promoting America's energy security, spurring innovation, reducing regulatory burden, enhancing national security through nuclear science, and addressing the obligation of legacy management and nuclear waste. This realignment returns the Department to its original statutory framework with an Under Secretary and, as proposed by this Committee and established by Congress in 2005, and Under Secretary for Science. The Under Secretary for Nuclear Security and Administrator of the NNSA, as established by Congress in 1999, was not changed by this realignment. Through careful prioritization and ensuring funding goes to the most promising research, DOE, through its national laboratories, will continue to support the world's best enterprise of scientists and engineers whose innovations drive American prosperity, security, and competitiveness for the next generation. We look forward to moving ahead with an aggressive focus on an all-of-the-above energy strategy that will improve the development of energy infrastructure, including pipelines, smart grids, small modular nuclear reactors, and energy storage. Along with the public-private partnerships with our national labs, we will bring research technology to market, helping us address our nation's energy challenges. This realignment allows the Department to focus on its priority of energy security through energy dominance and economic competitiveness, placing the energy offices--the Office of Energy Delivery and Energy Reliability, the Office of Energy Efficiency and Renewable Energy, the Office of Fossil Energy, the Office of Indian Energy, and the Office of Nuclear Energy under the direction of an Under Secretary of Energy. This structure allows the Department to apply personnel and resources to pursue the President's ``America First'' energy plan. By utilizing all forms of our nation's energy resources, we can achieve energy security and economic strength at home and energy dominance through exports to markets abroad. As the Under Secretary of Energy, I manage a comprehensive energy portfolio that includes the applied laboratories. Overseeing the network of applied labs, as well as energy programs, requires a focus on cooperation and collaboration. We are proud of the hard work and dedication our federal workforce has shown to the mission, collaboration and coordination with the program offices, and the focus on the priorities of DOE and the Administration. Along with the energy program offices, the realignment includes having the Office of Policy and the Loan Programs Office report through the Under of Energy and maintains two DOE-wide management and performance functions: the Office of Environment, Health, Safety, and Security; and the Office of the Project Management Oversight Assessments. Now, having just returned from a visit to the National Renewable Energy Laboratory and the Idaho National Lab, I can speak firsthand to the progress being made with early-stage R&D at these labs. At NREL, lignocellulosic biomass is being deconstructed to sugars to unlock the potential for renewable carbon fibers. Working with INL, both labs are creating new biofuels and discovering new properties of hydrogen. While at INL, I participated in a roundtable discussion with the national lab's Chief Research Officers from all 17 labs. All were world-class scientists enthusiastic on their visions and projects and genuinely excited at the opportunities and support this Administration has provided, allowing them to free up human capital and focus on their mission in removing overly burdensome reporting requirements. The Department appreciates the Committee's interest in its work, and we look forward to working with you on opportunities to foster and promote responsible energy development and promote energy dominance through--and security through science. Thank you again for the opportunity to be here today, and I look forward to your questions. [The prepared statement of Mr. Menezes follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Chairman Smith. Thank you, Secretary Menezes. Secretary Dabbar, let me address my first question to you, and it is this: that last year the House passed a Science Committee bill. I'm sure you're familiar with it. It was called the Department of Energy Research and Innovation Act. And it's my understanding that a lot of the provisions in that bill such as prioritizing advanced nuclear reactor infrastructure and opening up our national labs to be more readily acceptable and accessible to industry are provisions that could be implemented, for lack of another word, unilaterally by the Department of Energy. Would you give me a sense of whether you think the DOE will implement some of these reforms themselves or not? And if so, which ones? Mr. Dabbar. Thank you, Chairman Smith. No, absolutely. I reviewed that bill, have a summary of it in front of me, and we certainly support the points that were raised, and we look forward to working with you on those specifics if you want to reintroduce it here and would be glad to work with your staff on that. But in general, we support the points that you raised around management of the labs and the direction there. Chairman Smith. And you do think you'll be able to implement some provisions of the bill yourself then? Mr. Dabbar. Yes. We actually have quite a bit of flexibility I think on---- Chairman Smith. Okay. Mr. Dabbar. --operational aspects that were raised and look forward to doing that, and we have done that on some--on many of those points. Chairman Smith. Okay. Thank you. And, Secretary Menezes, you mentioned in your testimony that DOE has a policy of American energy dominance. Give us a little bit more in the way of detail as to how you hope to achieve that and maybe even what it means. Mr. Menezes. Well, thank you for the question. Within energy dominance, what we mean by that is that we are able to utilize our vast resources in ways to help other countries to have access to energy that they otherwise might be getting from countries that not necessarily share their best interests. So, with the work of the labs, we're able to develop technology improvements in the hydraulic fracturing, for example, so now we're the world's largest producer of oil and natural gas. Since we have as much as we have, we can now develop policies to export those energies, and it helps our allies not to be dependent on other countries for sources of energy. So in that context, I mean, we have a new historical geopolitical reality where the United States can actually be the country that other countries go to for energy. Chairman Smith. And when you talk about other countries coming to us for energy, what countries do you see as increasing their demand for U.S. supplied energy? Mr. Menezes. Well, we see it really across the globe, so, for example, on LNG export facilities, for example---- Chairman Smith. Right. Mr. Menezes. --you see countries in Asia, you see countries in Europe, you see countries in South America potentially that would like to have us export LNG to them. In coal you have countries in central Europe that have been receiving some of our coal exports, and then oil, Congress lifted the ban on export of oil, and as such now, we can export into the global markets of oil. Chairman Smith. Okay. Good. If I have time, I'm going to come back to that subject, but another question for Secretary Dabbar, and it is this: that over the years there has been some pretty strong and steady support for the fusion basic research program, and yet in the proposed budget, that program is subjected to some cuts. And I just wondered if you could explain to us why a program that has gotten such good support in the past and I think can be justified has been cut? Mr. Dabbar. Thank you, Chairman Smith. I can't comment to the specifics of the last budget proposal, but the fusion energy area and program office in the Department--Office of Science is very important. We have a lot of support across multiple labs. Obviously, we do--one of the main labs is Princeton Plasma, and we continue to fund that as a primary focus both of fusion but also plasma science. We also do quite a bit of work at Oak Ridge and also at Livermore on the laser side. Obviously, we have been doing some funding over time at ITER, which is a separate topic internationally, but we do continue to focus on that as one of the main program offices. Chairman Smith. So you think our research is going to continue. What about our international obligations? Mr. Dabbar. So our main international obligation is obviously ITER. The last budget proposal was zero. I think, as you probably know, ITER has had some challenges in the past where the initial proposal for the whole of the program from all the countries was a little over $6 billion, and now it's currently up to $65 billion, so it's moved quite a bit in terms of project costs. We--the Administration is reviewing that as part of an overall nuclear review policy---- Chairman Smith. Okay. Mr. Dabbar. --and we have yet to reach a conclusion on a cross-department basis on exactly our intent around funding and recommendations around funding---- Chairman Smith. Okay. Mr. Dabbar. --so that is ongoing and is an active part of-- -- Chairman Smith. Okay. Mr. Dabbar. --what I'm engaged with. Chairman Smith. Thank you, Mr. Dabbar. And the gentleman from Texas, Mr. Veasey, is recognized for his questions. Mr. Veasey. Thank you, Mr. Chairman. I want to talk with you about some of these unjustified budget cuts. The President's budget request declared some research as early stage and therefore worthy of federal support and other activities as later-stage research that should be immediately eliminated, given that the private sector is supposedly better equipped to carry them out. However, during a briefing to Congressional staff, Administration officials confirmed that they did not engage with the private sector at all while compiling the fiscal year 2018 budget request to determine what industry would or would not be able to pick up. Given that there was a complete absence of engagement with industry, even as the Administration made these proposed massive sweeping cuts to these programs, how in the world did you determine what DOE should or should not support across these program offices? And I would like to hear from either one of you on this. Mr. Menezes. Well, I can't speak to the budget process, not having been involved in it. I can tell you that, as just a matter of course, our program officers and our labs regularly engage in conversations, collaboration efforts with the private sector. Indeed, most of our funding opportunities come out of those discussions and collaborations and conferences, and it's an ongoing and constant thing. And that's the first--if you're not aware of it, it's one of the first things you learn when you get over at the Department how deeply involved they are with the latest technologies, whether it's in the labs, whether it's in the program offices, whether it's in private industry and whether it's in the universities in peer research. And it's a great process to see. So while I can't speak to the budget as a practical matter, we want to assure you that it is an ongoing enterprise. It also helps to inform our priorities going forward in the next round of budget discussions. Now that we're on board, we can help now more fully inform decisions during the budget process. Mr. Veasey. Okay. So, I mean, let me ask you. Are the proposed cuts research areas that private sector is willing to simply start funding after the federal government cuts them, or are we going to risk losing our innovative companies and researchers to our foreign competitors? Mr. Menezes. Well, I think the way that we look at it is that the private sector can manage risk. They are aware of technological advancements in certain areas, particularly in their areas of expertise. They manage risk. They make investments to bring to market those technologies that they know will help the industry as they assess it. Mr. Veasey. Well, do you expect them to pick up the shortfall? Mr. Menezes. Well, in those areas where, through the work of this department brought things to commercialization and deployment, we would expect the private sector to pick that up. However, where the research is too risky and private sector is not willing to invest the substantial monies that it takes to see if you can either make a basic discovery or take it to the next step, that's where the Department will step in. Mr. Veasey. Okay. And also I wanted to ask you, Mr. Dabbar. You just said in a response to a good question from the Chairman that the Administration request for ITER was zero but the President's fiscal year 2018 request for ITER was actually $63 million, an increase over the appropriated level in fiscal year 2017 of $50 million. Did you perhaps misspeak or were you indicating that the Department will request no funds in fiscal year 2019? Mr. Dabbar. I believe that the last proposal for last year, which was '18, was zero. I may be not correct. But I think the debate is certainly about our funding going forward. Mr. Veasey. Okay. And also, Mr. Chairman--and I'm running out of time here. I wanted to ask about the Texas Clean Energy Project, but we'll get back to that a little bit later. Thank you. I yield back the balance of my time. Mr. Weber. [Presiding] All right. The gentleman yields back. I'm going to go ahead and recognize the gentleman from California, Mr. Rohrabacher. Mr. Rohrabacher. Thank you very much, Mr. Chairman, and thank both of you for coming to brief us today. Mr. Dabbar, you mentioned in your opening statement the progress that's been made on battery technology. Let's just note that with the development and the actual deploying of more efficient batteries, then the--all of this solar energy and the--all this technology we've developed with wind, et cetera, actually becomes doable. Some of our hesitation on this side of the aisle has not been just based on that we don't think global warming is important but that the technology really wasn't there. When do we expect to see these batteries on the market, and do you know of Dr. Goodenough and his--who was the inventor of the lithium battery and his breakthroughs down at University of Austin Texas on a sodium-based battery? Mr. Dabbar. Thank you, Congressman. So I completely agree with you. Mr. Weber. Your mic is either not on or not close enough. Mr. Dabbar. Yes. Thank you. Thank you very much for that question. No, clearly, I think of all the technologies that certainly crosscut not only between the program offices that both report to the two of us but across multiple labs is clearly a focus of what we're working on. And the intermittent nature of wind and solar and some other technologies, really the gap to be filled for all those is in the battery and storage area. Mr. Rohrabacher. Do we have any of those new battery technologies actually on the market now? Mr. Dabbar. So we are working--and this goes back to a previous question. We have over 85 companies that we're working with in the battery sector across our various different labs, and whether it's flow batteries, multivalent batteries, we are actively moving those forward into market. Mr. Rohrabacher. They are commercialized? So someone could--if someone wanted to develop it for solar power could actually now go to one of those batteries? Mr. Dabbar. So they are commercializing so---- Mr. Rohrabacher. Commercializing. Mr. Dabbar. --so obviously in many of our areas, I think as Under Secretary Menezes mentioned---- Mr. Rohrabacher. And--well, let me just note that one of the things that have been frustrating for me on this committee over the years is the fact that things do get studied and studied and studied to death, and it's almost like somebody wants to continue their research project in order to get a government grant in order to have another years paying on--off their bills. That's--I think that's a problem that we've got to look at that commercialization is just as important as discovery. Now, ten years ago in April of 2008 this committee had a hearing on opportunities and challenges of nuclear power. And at that time we were told that the next generation of nuclear power was a promising option for the future, just as we just heard about batteries as well, but not yet ready for commercial development. Well, that was ten years ago, and we haven't seen any design certified by the NRC since then when they need to have at least their fuel performance and fuel characterizations of standards, materials, et cetera, et cetera, if anybody's going to move forward with it. And in fact--but we go--when you go to the companies and they say, ``Well, we can't really build a prototype until the NRC has approved these various elements. And then you go to the NRC and they say, ``Well, we're looking at designs that have been built in tested through prototypes. You know, it's like the chicken versus--what comes first, the chicken or the egg? I would hope that this Administration with its can-do approach, with its ``America First,'' ba, ba, which we're all rooting for, I hope that we get a prototype and start focusing on actually building an energy prototype for this new next generation of nuclear power, which we know can be safe and can actually--without waste left over, without materials for bombs left over. We can build that. We could have built it in the last ten years, but we haven't done anything because--and this is where it's in your lap now. Let's make sure we structure the whole program aimed at building the prototypes and getting them commercialized rather than just reporting to us how great the research is coming along. And please comment on that. Mr. Menezes. Do you want me to answer---- Mr. Dabbar. Well, I'll go ahead and comment on batteries and then defer to you---- Mr. Menezes. Okay. I'll comment---- Mr. Dabbar. --on the new commercial nuclear. But as an example of companies that are working with our battery team right now, United Technologies, Johnson Controls, Dow, General Motors, and A.D. Moore that are actively working with our batteries, so I think what we're working on in terms of commercializing, these are real companies who want to make real money who are taking our technologies and are moving them forward. So I feel very positive about that. And going out and seeing the labs and actually sitting down with them at the companies--and that's what we do, obviously, when we go to our labs. We see that. Mr. Rohrabacher. And about the nuclear---- Mr. Menezes. So on the small modular reactor, for example, at INL---- Mr. Rohrabacher. Yes. Mr. Menezes. --on my last trip, they are exploring opportunities to actually site and build a small modular reactor there near the lab. The combined operating license needs to get through the NRC, so that will take a process of-- -- Mr. Rohrabacher. This has been going on--this has been going on for at least ten years, probably 20 years, but ten years we could've done this ten years ago. So I would hope, as I say, that you take this to heart and structure your operation at the Department of Energy in a way that we're going to be getting a prototype built so that it can then move forward from there because it's been stuck here for ten years, and it's a real crime. The fact is that San Onofre is near my district. It's shut down. The light water reactors are old and they're dangerous. And San Onofre's shut down, and guess what, we have to spend $70 million a year just watching that leftover uranium or whatever it is, fuel from the plant there. We could use that, I understand, in these new modular reactors as fuel for the new ones and actually eat it up, the waste that now it's costing us just to look at. So I would hope that next time we meet and next time we have this hearing, you can report to me some real progress towards the prototype there and maybe how some companies have actually commercialized those batteries. Thank you. Mr. Weber. I thank you for yielding back. The gentleman from Virginia, Mr. Beyer, is recognized. Mr. Beyer. Thank you, Mr. Chairman, very much. I'd like to talk some about the structural issues that are going on at the Department of Energy. We've heard some concerns today about how the restructuring of the Department's leadership could be detrimental to the coordination and management of the civilian science and technology programs. Mr. Menezes' testimony states, quote, ``The modernization effort returned the Department to its original statutory framework with three separate Under Secretaries,'' end quote. And I don't believe that's true for multiple reasons. First, the original statutory framework in the Department of Energy Organization Act in 1977 established only one Secretary not three, or perhaps more importantly, you imply with your testimony that the structure under Dr. Moniz was violating statute by not conforming to the required number of Under Secretaries, which I also believe is not the case. Let me read some excerpts from the Department of Energy Organization Act, as amended, by the Energy Policy Act of 2005, which particularly relates to the establishment of the Under Secretary positions that you hold. Quote, ``There shall be in the Department an Under Secretary for Science. The Under Secretary over Science shall, among other things,'' and again, I'm quoting, ``monitor research and development programs at the Department, advise the Secretary with respect to grants and other forms of financial assistance required for effective short- and long-term basic and applied research activities of the Department, supervision or support of research activities carried out by any of the Assistant Secretaries designated by section 203 of this act.'' So I'd like to note that the Assistant Secretary, as outlined in section 203, include all the energy technology programs now under the authority of Mr. Menezes rather than the Under Secretary for Science, Mr. Dabbar. So in the Department's rationalization of this unwarranted organizational change, you claim, quote, that it is, quote, ``consistent with Dewey's statutory mandate.'' Instead, it actually appears to move the Department further away from the statutory mandate. I'm inclined to think that Secretary Moniz was much closer to the intent of the law than what the Department is doing now. So, Mr. Dabbar, a specific question: Can you explain why duties that are assigned specifically in statute to the Under Secretary over Science are now under the authority of the Under Secretary of Energy? And how do you both claim that this is consistent with Dewey's statutory mandate when it moves us farther from what the statute says? Mr. Dabbar. Thank you, Congressman Beyer. On some of the statutory very specific language I might defer that to the gentleman to my left who actually helped write some of that language when he was on committee for that. But in terms of the specific responsibilities, the specific responsibilities around being the Chief Technology Officer and science officer across the whole other complex is mine as part of the statutory obligations. And there's many different ways that that is actually practically being done. I'd like to talk about the practical aspects of what we're actually doing. First of all, in terms of coordination across the technology platforms in terms of commercialization, which is a much longer topic, the Office of Technology Transitions reports to me, and that particular function in which it is coordinating across the whole of the complex--by the way, not just Secretary Menezes area but also in dealing with what's also outside of his area, which includes NNSA labs and it also includes ARPA-E. And so---- Mr. Beyer. If you--forgive me for interrupting you. I appreciate all that, and I appreciate the overall perspective that you have---- Mr. Dabbar. Yes. Mr. Beyer. --but is there any way to justify or rationalize how Assistant Secretary specifically assigned by law to you now report to a different Under Secretary, Mr.--Dr. Menezes. Mr. Menezes, perhaps you could deal with that? In fact, let me expand on that. Your position, which simply named Under Secretary in the U.S. Code, not Under Secretary for anything, does not have well-defined statutory responsibilities but rather it's the broad discretion of the Secretary. Did the Secretary consider the explicit direction in the statute defining the Under Secretary for Science's role when establishing your duties? And also if you can fill us in on what I asked Dr. Dabbar--Mr. Dabbar? Mr. Menezes. Sure. Thank you for the question. Regarding the statutes, so what we did was as we reviewed all of our statutory authorities, our organizational act, and our various authorities, and we reverted to what we think was the intent of Congress. And that is--and let me just say that before Secretary Moniz, there was always an Under Secretary for the Department which over time became called the Under Secretary of Energy. And in 19--and the reason for that change was because in 2005 this committee during the Energy Policy Act of 2005, has suggested that the Office of Science should have its own Under Secretary. And this was a bipartisan effort. And so the Office of Science for the first time was going to have its own Under Secretary. So that joined the traditional Under for the Department, which Congress did not change. And they did not change that there was an Under Secretary for NNSA. So by 2005 you had three Unders essentially. And in the Office of Science it was important, and it was bipartisan support, to make sure that the Office of Science had its own leader essentially. In the energy--I mean, the Energy Committee, everybody went along with that. We really did think that. But Congress at that time I don't think I ever even envisioned that the energy components of the Department would be under an Under for Science because we wanted to make sure that Science had its own structure. The labs that you mentioned, these are applied labs that traditionally have been located, if you will, within the program offices within the energy program offices, so it's not that they report to me as much as they are in the program--our works with the program that reports. So we collaborate with the applied labs, collaborate with the science labs, and we are consistent with the statute. That's what we've done, no more, no less, but we wanted to separate out actually the energy program offices from the Under of Science because we wanted to make sure the Under of Science could focus on science, which was the intent of this Committee when the provision was put in 2005. So we actually thought it was a good thing. I mean, we're just following the statute as it's written. I know you may have a different view, but based on my experience with the other committees and the intent of Congress at the time---- Mr. Beyer. Mr. Menezes---- Mr. Menezes. --we wanted to elevate Secretary of Science-- or the Office of Science. Mr. Beyer. Let me yield back to the Chairman before---- Mr. Weber. Yes, I think the gentleman's time is expired. He's probably gotten an answer. I'm not sure it's the one he wanted, but he got an answer. We appreciate that. I'm going to recognize myself now for five minutes. So let me start back with you, Mr. Menezes. That's how you pronounce that, is that correct? Mr. Menezes. That's correct. Mr. Weber. Okay. Mr. Menezes. Good enough. Mr. Weber. Sir? Mr. Menezes. Menezes, that's correct. Mr. Weber. Menezes? Mr. Menezes. Yes, sir. Mr. Weber. Good. I can do this. The President's fiscal year 2018 budget includes $10 million to begin planning for a fast neutron research reactor that would operate as a user facility within the Office of Nuclear Energy. Now, the gentleman from California, Mr. Rohrabacher, was here and he talked some about the small modular reactor that's taking so much time. This committee has authorized--advanced several bipartisan bills to authorize this user facility--a.k.a., the Versatile Neutron Source--and prioritize early-stage research in advanced nuclear energy technology. And we would love to see the DOE married up with the NRC and that chicken-or-the-egg question might go away where they would be able to--the NRC would be able to actually weigh in on the design as it's coming along and then we wouldn't be worried about getting a prototype. Nonetheless, last Congress, my bill, with the Chairman's help, the Nuclear Energy Innovation Capabilities Act, passed the House three times and has already passed the House as a part of Chairman Smith's comprehensive legislation, which is H.R. 589. Most recently, the Committee advanced my bill, H.R. 4378, the Nuclear Energy Research Infrastructure Act, to authorize funding to complete this project that I'm talking about. The House-passed energy and water appropriations bill also devotes $35 million to kickstart this project. Based on my extensive conversation with stakeholders, I think it's critical that we start construction on this user facility as soon as possible or American companies you referred to that were able to manage risk and able to be in the best position to be the global leader of energy, those American companies will be forced to conduct research for advanced reactor technologies overseas. We don't want that. So will you commit to work with me to ensure that this project is a top priority for the Trump Administration? Mr. Menezes. Yes, sir. Mr. Weber. That's easy enough. So in--so we may have to borrow the money from you, but I'm glad you're so amiable. In my bill, it sets a target to complete construction on the Versatile Neutron Source by 2025. In your opinion, for us to be able to hit that target, what resources are required to start and complete the construction of this project so that we don't wind up with the problem we had with the small modular reactor? What do we need? Mr. Menezes. Well, having just returned from INL where I saw the advanced test reactor that has celebrated its 50th year, it continues to be the leading reactor that businesses in other countries come to test new fuels and materials. It is a thing to behold. They are very excited about the prospects of Congress taking action on your bill, and should Congress find the resources, I think that the scientists there would look forward to implementing the provisions of it. As we've heard from other Members, part of the process involves a regulatory review of many nuclear facilities for health and safety at the NRC, so we would have to work with our sister agencies to ensure that there would be sufficient processes and resources available for both to work toward accomplishing the goals in your bill. Mr. Weber. Has the Secretary--has Secretary Perry been briefed on the bill? Is he aware of it? Mr. Menezes. I'm not aware if he has been briefed specifically on the bill. I know he has been briefed certainly on the nuclear issues and the priorities of the Administration. Mr. Weber. Okay. In this committee--well, let me--I've got less than a minute left. So in your opinion, how does this Administration--this is a question for both of you--define early-stage research? Mr. Dabbar. Thank you, Mr. Chairman. In terms of early- stage research, it's clearly focusing on the areas in which the commercial sector is not spending--is not focused on the R&D side in which it is not near the commercialized area in terms of any particular technology. Mr. Weber. Let me break in here because, Mr. Menezes, you made the common earlier that you wanted to ensure funding went to the most promising research. Well, how do you know which is the most promising research unless you get in that early-stage? Continue, please. Mr. Menezes. Yes--no, I'm glad to continue. So if you-- basically, it's going program office by program office and identifying where in particular the commercial sector is and where do we fit. I'll give an example. On high-performance computing it's quite easy. We know exactly where Intel is and AMD and Micron and IBM are at in terms of computing on the commercial side. We know exactly where we are at, which is at the cutting edge. We have dialogue with our potential suppliers--once again, Intel, IBM, Nvidia--about what we think is capable in terms of pushing the technology since we're at the front end way beyond the commercial sector in those particular areas. And then we decide where we want to recommend for appropriations and for us as a program office. So I could go through one by one, but that's--I can think a very clear example of where we interacted know where the commercial sector is versus what we recommend what to do. Mr. Weber. All right. And I'll jump over to you, Mr. Menezes. Mr. Menezes. Right. So in the solar world, for example, I actually brought this neat chart from NREL. So this shows existing technologies and efficiency levels and how long they've been in play and commercially available. Here, you see breakthrough technology that is taking place at our labs that show an exponentially--if I can use that word correctly-- increase on efficiency. It's not commercially available yet. Now, what's the relevance of this? I mean, the relevance is that all--these are solar panels that have been in the market, and they have been used. This potentially is breakthrough technology. There won't even be solar panels anymore to give you an idea. So you have both breakthrough and you have approaching commercialization. So if you wanted to focus in the world of solar, I think that this, and the work that INL is-- NREL, excuse me, is doing is a good example. Mr. Weber. That's a great chart, and I'm looking at it from a distance here. The span left to right--and how many years does that cover? Mr. Menezes. This goes from 1975 to 2020. Mr. Weber. Okay. Thank you. I appreciate that. I'm going to yield back and recognize Mr. Tonko at this time. Mr. Tonko. Thank you, Mr. Chair, and thank you to our witnesses for being here. I completely agree that the national labs are the crown jewels of America's research community. They are indeed responsible for major breakthroughs in science and energy innovation and national security. As I mentioned, when you had testified at the Energy and Commerce Committee, I saw this firsthand when I visited Brookhaven last year. Brookhaven is leading us into the future using fundamental science that would change our understanding of the world around us and of our universe. From the Center for Functional nanomaterials to the National Synchrotron Light Source to the big ring collider the only large particle collider in North America, one of two in the world, I am in awe of the scientists and work being done there, drawing on their passion and expertise, coupled with adequate funding we can ensure our nation continues to be a world leader in scientific research and development. The Administration has proposed eliminating Brookhaven's Center for Functional Nanomaterials, a profoundly misguided effort. CFN is the newest of the five centers in the country, which means it has the newest and some of the best in the world equipment. It is located right next to Brookhaven's light source, so housing it at Brookhaven is intuitive. There are more than 500 users who depend on the center. During my latest visit, I was impressed with the scale of the machines. I'm curious if there have been further conversation on its--CFN's future. Have you been part of discussions or are you aware if the funding will be provided for this critical effort at CFN of advancing the science of nanomaterials that address the nation's energy challenges? Mr. Dabbar. Thank you, Congressman Tonko. So the budget is obviously still being finalized, but let me actually echo what you just said in terms of specifics in terms of the Nanomaterials Center at Brookhaven. I completely agree with you that if you look at what they produce, it's truly cutting-edge. Let me give you two examples. One of the things that they've done is to have a prototype of black glass for increased absorption of photons potentially for use in advanced solar panels. They've actually produced a material, a glass, that could increase the absorption rate by 100 percent-- -- Mr. Tonko. Which I might cut in is absolutely essential. Mr. Dabbar. Yes. Mr. Tonko. I mean, I did witness that whole project with the black glass---- Mr. Dabbar. Yes. Mr. Tonko. --and it should be important to our country in regard to effectiveness of our renewables. And if this Administration isn't behind renewables, can we be certain that you will, with passion, push for investments in this technology? Mr. Dabbar. I can commit to you that I am passionate about what is being accomplished in the area of nanoscience and materials at Brookhaven, and I will continue to be so. Mr. Tonko. Okay. And it's my understanding that the Administration has proposed eliminating Brookhaven's Center for Functional Nanomaterials. CFN is the newest of the five centers in the country, which means it has the newest and some of the best equipment in the world. It is next to Brookhaven's light source, so housing it at Brookhaven is important. There are well over 500 users who depend on the center. When I visited, I was extremely impressed with the scale of the machines, and I'm curious if there have been further conversations on that future. Have you been part of discussions or are you aware if the funding will be provided for this critical research? Because it--when we look at the vast majority of Brookhaven's funding coming from the DOE Office of Science, which the President's last budget request proposed cutting by 17 percent, Brookhaven also receives funding from EERE and other critical sources that the Administration has proposed slashing. Without adequate funding, we will slow down and in some cases completely halt the progress that Brookhaven and our national labs could accomplish. How important is adequate funding and the commitment of continued investment for our national labs to fulfill their potential? And what would be the consequences of that type of cut? Mr. Dabbar. Congressman Tonko, thank you very much. I have not--back to your question that you posed, I have not been involved in any debates about particularly the center and funding for the nano center. But once again, there is tremendous data so to speak in terms of products and technologies that that particular center is producing, and I am an advocate and I will continue to be an advocate of what we've been able to accomplish there. Mr. Tonko. Well, in addition to their almost 3,000 full- time employees, Brookhaven supports scientists across the country who are visiting scientists or facility users. On top of that, hundreds of students are learning and conducting research there. I believe it's clear that the U.S. research community depends on our labs. If funding is reduced, it would be a big blow, and these opportunities decrease. Might this hurt the development of our next generation of scientists and engineers? Either of you, does it diminish the opportunities or the growth for the next generation of scientists and engineers? Mr. Dabbar. You know, what I would say is that obviously the Department of Energy is the primary funder across the board in terms of research both at the university level and across the spectrum, I think as you know. About $3.1 billion a year is part of the DOE budget for FOAs and for grants, including universities all across the country, and that's going to be a continued focus obviously for the Department. Mr. Tonko. Well, I've exhausted my time, and I yield back, but I can only say we need you to push really hard for the appropriate level of funding if we're going to continue forward with a bit of progress. Mr. Weber. The gentleman yields back. The gentleman from Illinois is recognized. Mr. Hultgren. Thank you both for being here. I appreciate your work. I appreciate your expertise that you bring to the jobs that you--the important roles that you fill. And these are really important subjects that we're talking about today, so thank you so much again for being here. Mr. Dabbar, it was great to be with you in November at Fermilab, grateful for one--for the visits I think you made after your confirmation was there to Fermilab, and it was great to be with you. I really enjoyed it, but I also know everybody in Fermilab was really pleased and impressed with your visit, so I just want to say thank you so much for taking that time to be there and to see some of the amazing things that they're doing. I also want to thank the Administration for continued commitment to the Long-Baseline Neutrino Facility and the accompanying Deep Underground Neutrino Experiment that you mentioned in your opening remarks, your statement. It was reassuring for the international community as well and the people working in my district to hear from the Secretary and OSTP at the groundbreaking of the Farr site in South Dakota last year as well. One question I have as the process continues is regarding the PIP-II upgrades for the beamline. While a separate project from LBNF DUNE, this upgrade is necessary for the success of LBNF DUNE and has already garnered international support, again, as you mentioned, for about 20 percent of the project with India alone investing $200 million. Giving America the world's strongest neutrino beam is essential for the United States to become the single place in the world where scientists will come--must come--to do this work. I wondered, Mr. Dabbar, if I could ask for your commitment to assess the status of PIP-II and, if possible, to help move this project forward through DOE's review process and provide the necessary funds to keep this project on track? Mr. Dabbar. Yes, Congressman Hultgren. I'm very much in support of continuing to review that. Obviously, as you pointed out, there's been great international cooperation. I think if you kind of compare that to our version of CERN---- Mr. Hultgren. Yes. Mr. Dabbar. --in terms of being able to draw on support and draw on science. It's actually big focus of mine is take what the Fermi team has done in terms of how to build an international consortium to pull investment into the United States based upon our knowledge, based upon the knowledge that's at Fermi laboratory and actually what I want to try to do is not only execute on what we're doing, pull in some additional funds, which both myself and the Secretary and the Deputy are actively engaged in diplomatic aspects of other countries to do that. But we actually want to take the skill sets that the team---- Mr. Hultgren. Right. Mr. Dabbar. --that pulled together at Fermi to try to look at other potential user facilities in the future to use that as a model. Mr. Hultgren. That's fantastic. And I think the best story out of that certainly is great work done to pull it together, but even as you and I talked about there, the challenge that we have to do to keep that going and growing is to make sure we're doing our part as well, and so that's our commitment and--is Congress working with the Administration to make sure that funding is there, that we're able to follow through on these important projects that are garnering this amazing world attention, but more than just attention, investment that is really exciting. If I could address to both of you in just the remaining minute-and-a-half that I have, the House has passed legislation that I've sponsored the last two Congresses unanimously to modernize and streamline the technology transfer process from the labs, again, something that you mentioned. One of the Administration's key priorities has been removing regulations that are impeding the private sector from bringing new ideas and businesses to the market. A provision of my legislation, which the prior Administration opposed, allowed for laboratory directors to have signature authority on tech transfer agreements below $1 million. While I respect the site offices and their need for DOE oversight of our labs, unfortunately, the time it takes to do many of these small agreements means that small businesses and other partners were unable to work with our labs. I wondered if this is a proposal you'd be willing to take a look at, and we feel like this is in line with commonsense deregulatory approach that the President has tasked agencies to implement. So, again, I wondered if you might be willing to take a look at this, again, empowering for some of these still significant but lower-cost projects to allow site directors to be able to move forward? Mr. Dabbar. Yes, I---- Mr. Hultgren. Or lab directors. Mr. Dabbar. I've reviewed H.R. 1158 and certainly looked at a lot of those particular provisions. I certainly understand the point about the signatory authority. I'm certainly open to discussing that. I've not gone through that particular point in detail, but we have focused a significant amount on reducing the amount of legal effort and Administration effort around CRADAS, around work for others, and as you probably know, we actually took the act program which is another version which allows greater flexibility on legal points around contractors to enter into new agreements. We made that permanent. So we generally agree with everything that you've laid out in H.R. 1158, and I'm certainly open to talking with that particular line item point further. Mr. Hultgren. Great. Well, again, thank you all--thank you both so much. Mr. Menezes. Did you want me to add anything on that? I was just--except for my---- Mr. Hultgren. Quickly. Maybe just--I'm sorry, my time---- Mr. Menezes. --private sector experience---- Mr. Hultgren. --is expired but---- Mr. Menezes. --the act model seems to reflect a lot about what goes out there in the private industry on risk assessment---- Mr. Hultgren. Right. Mr. Menezes. --management---- Mr. Hultgren. Yes. Mr. Menezes. --funding. Mr. Hultgren. That's right. Thank you. Thanks, Chairman. I yield back. Mr. Weber. At least he didn't say anything negative about your bill, so that was good. The Chair now recognizes the gentleman from California, Mr. McNerney. Mr. McNerney. I thank the Chairman. I thank the witnesses. Say, the terms early-stage research and late-stage research seem to be used in a cavalier fashion in the budget as a rationale to cut some programs and fund others. Can either one of you define what early-stage research is and what late-stage research is? Mr. Dabbar. I'll certainly start. In terms of early-stage research, once again, it depends on the program office, but it is specifically identifying where the commercial industry is not at and where we think that something in terms of an area of science or an area in technology that, if capital was employed, that we can move forward to balance, and whether that's high- performance computing, which is one topic, or in particle physics or in imaging, that's in general how we would define what's early-stage. What's late-stage is something that is very close to the point in which the commercial sector sees financial viability to make a profit in a particular product. And just to summarize, we're very much engaged with industry product by product to know exactly where, you know, the point is to debate and move as technology moves. Mr. McNerney. Well, how about just defining late-stage as when the private sector is willing to fully fund the research? Mr. Dabbar. That's certainly one definition. You know, you can actually debate whether it's 100 percent or if there's other funding mechanisms that help push it over the edge, but yes, approximately, I do agree with that. Mr. Menezes. Well, if I might add on that, for example, when Congress passed the Loan Guarantee Program, it--back in 2005, they focused on emerging technologies and of course the technology to reduce emissions. That was a loan guarantee, so it was technologies that were sufficient to attempt to commercialize, but the private sector couldn't quite, you know, fund it. These were high capital expense projects. And so that was--back then, Congress sort of sought to identify opportunities there to bring the government loan guarantee program to bear-- Mr. McNerney. Okay. Thank you. Mr. Menezes. --back in 05. Mr. McNerney. Mr. Dabbar, over the past few years, several promising alternative approaches to achieving a viable fusion reactor have emerged from small and medium-sized startups, as well as academia and our national labs. What is the Department doing to ensure that the full range of viable options to achieve commercial fusion is sufficiently vetted and, where appropriate, well-funded? Mr. Dabbar. Thank you very much. Before I was lucky enough to be in this position, I actually have had experience in trying to commercialize fusion and worked with a number of the different entities, so I certainly have familiarity and/or working with Tri Alpha, with Lockheed, with General Atomics, as well as understanding the efforts that were made by the Department. There's obviously a number of different geometries that could be potentially used, and I could say that the fusion area is about as opinionated as any in terms of the differences of the types of technologies. Certainly, with the funds over to recent times we've been focusing on Tokamak, but at some of the other technologies, we've actually given access to high- performance computing from modeling for magnetic fields, so even though we don't directly fund, we actually, through high- performance computing and advance computing, give access to modeling capabilities for some of those commercial areas which we're very happy to support. Mr. McNerney. Thank you. Mr. Dabbar, last year, the Committee held a hearing on geoengineering research, and the prevailing recommendations from the witnesses at the hearing that the National Academies--and the National Academies is that there needs to be more fundamental research. Will this Administration support geoengineering research that does modeling and laboratory testing? Mr. Dabbar. I'm not familiar with that particular hearing or the witnesses, but I'm certainly open to that particular topic. I'm learning more about what was said there and the recommendations. Mr. McNerney. Thank you. How--Mr. Menezes, how do you intend to work with the NRC to ensure that the DOE is a helpful partner in licensing nuclear reactors? Mr. Menezes. Well, we do intend to meet with staff, to meet with the current commissioners. In fact, we have met with some to ensure that our goals are the same. We have several projects that we're interested in. Clearly, we're hopeful that the small modular reactor application will be both timely submitted and considered. So we are having conversations with them. Mr. McNerney. Do you think there's a constructive role that ARPA-E could play in advancing environmental management mission, Mr. Dabbar? Mr. Dabbar. Yes. I think that there's obviously a number of different technologies that could be--that could help the mission, and certainly, we are taking a look at whether a particular FOA topic coming out of ARPA-E could be utilized for that. Mr. McNerney. Thank you. I yield back. Mr. Weber. The gentleman yields back. The gentleman from Texas, Dr. Babin, is recognized. Mr. Babin. Sir, thank you, Mr. Chairman. I appreciate the witnesses for being here. Mr. Menezes, the Department of Energy has a long history of public-private partnerships in the fossil energy research and development program with some notable successes like the Petra Nova project in Texas, which was designed to capture over 4,000 tons of carbon emissions from a coal plant and use those emissions to produce 15,000 barrels of Texas oil each day, which was a 50-fold increase over the field status quo. But it is also had some notable failures as well like the FutureGen project where, after 12 years and over $200 million in taxpayer dollars spent, DOE was forced to withdraw from the CCS project after endless delays. It's clear that fossil energy is part of our energy future with over 200 years of coal and at least 100 years of natural gas reserves in the United States, but it is less clear what role the DOE programs should play in developing new fossil energy technology. How do you propose to use the Department's limited resources to expand the impact of fossil fuel research? As Under Secretary, how will you ensure the Department better leverages federal resources to advance energy innovation and make our vast fossil energy resources cleaner, more reliable, more affordable, while creating U.S. jobs? Mr. Menezes. Thank you for the question, Congressman. You know, regarding fossil energy, the focus has been primarily on post-combustion technologies, carbon capture sequestration, carbon capture utilization sequestration. We have begun a reassessment of uses of fossil energy both pre-combustion, during combustion, and then post-combustion, so we have expanded the potential opportunities for fossil energy in the world of research and development. So take coal for example. There may be pre-combustion techniques to help minimize emissions. There may be new uses of coal never before considered, so we're taking a look at that. On natural gas we have seen the successes of the improved buffering techniques for hydraulic fracturing. Congress did a big part in unleashing natural gas. We see in some of our applied labs we're actually looking at refined products to make them more efficient in production. So we think we have a full array of opportunity to use our resources a little more broadly than in the past. Mr. Babin. Well, it's amazing because just a few short years ago I remember hearing a program--it may have been at the Lions Club in--I represent the 36th District in Texas, and we had a couple of experts. One of them was from Schlumberger I remember talking about peak oil. This was just a few years back, and we were done with fossil fuels. And so I think it's just ever so important and significant that we use every resource that we can to try to make it more efficient. And, Mr. Dabbar, do you have anything that you would like to add to that at all? Mr. Dabbar. You know, I do think that energy technology---- Mr. Weber. Get your mic on, Mr.--there you go. Thank you. Mr. Dabbar. Obviously, the Department, through a number of different labs, had impact on that. I think it's--obviously, people like George Mitchell and so on were---- Mr. Babin. That's right. Mr. Dabbar. --move things forward, but I think as you probably know, Sandia and one of the applied labs at NETL actually had impact on the horizontal drilling and hydraulic fracturing technologies and computer modeling. And one of the major things that helped move along Marcellus Shale development was actual funding that came out of one of the labs that reports to Under Secretary Menezes. And the actual modeling that took place--a lot of the early models that took place came out of an NNSA lab at Sandia. So the Department has actually been a big supporter of a lot of these developments, and we're obviously glad to see that we're not only the number-one oil producer in the world, we're the number-one gas producer in the world, severally. Mr. Babin. Absolutely, and that's good news. Thank you very much. And I yield back, Mr. Chairman. Mr. Weber. Thank you, Doctor. And the gentleman from Illinois, Mr. Foster, is recognized. Mr. Foster. Thank you, Mr. Chairman. And thank you to our witnesses today. I'm Congressman Bill Foster. I sometimes introduce myself as saying I represent 100 percent of the strategic reserve of physicists in the United States Congress, and I serve alongside Mr. McNerney, who represents 100 percent of the Ph.D. mathematicians in this august body. And--but I was recently privileged to spend the day with Secretary Perry as he toured the two large DOE laboratories, and I was really struck with his genuine enthusiasm, you know, for the science they do and his willingness to advocate for the science program. So I am encouraged to hear you echo that enthusiasm. Mr. Dabbar, I was impressed actually by the bipartisan support for advanced battery development, so thank you for recognizing in your testimony the battery work at Argonne National Lab, which I represent, which anchors the nationwide JCESR initiative, a multi-laboratory, a multi-university collaboration for advanced batteries, which is in fact producing prototypes of these--you know, of the technology it's developing. Thank you also for acknowledging the critical role of Argonne's Advanced Photon Source, which is--and presumably its upgrade, which I trust you will also support. This is crucial to, you know, the continuing development there. And finally, Argonne's petascale supercomputing initiative, you know, which will be the world leader and should reclaim, you know, something in an area where frankly it's under threat from China in surpassing it. And thanks also for your commitment to complete the construction of the LBNF DUNE neutrino initiative at Fermilab where--I worked at Fermilab for 23 years before coming to the U.S. Congress, and so I got a chance to introduce a lot of my old friends to Secretary Perry when we had our tour together. And I've also been impressed by the international scientific enthusiasm for the neutrino program there and second my colleague from Illinois' enthusiasm and his emphasis on getting the PIP Proton Intensity Program upgrade through the CD-1 progress--program and, you know, milestone and beyond. That's crucial. Now, the question that I have here is probably the toughest one you're going to be facing, which is the question of ITER, which is--this is something that was punted to you from the last Administration. It has been, you know, back and forth in Congress whether or not we should continue with ITER because of its well-known cost issues. And in the last fiscal year there was a recommendation from the previous Administration that the U.S. involvement in ITER be reassessed prior to the fiscal year 2019 budget, which is, as you mentioned, ongoing. And this budget is now due in only a few weeks. And I was wondering, you know, is this decision timescale one that you expect to be--you know, to be actually held, that you'll have a--you know, a recommendation on whether to proceed with ITER---- Mr. Dabbar. Yes. Mr. Foster. --by the time of---- Mr. Dabbar. Yes. Yes. So thank you, sir. So I think as you know, in '18 back to the previous comment--so we'd ask the proposal--I was not here but in terms of the handover--and it is a challenge. I admit I think it's a challenge for everyone here that the last cash proposal was zero, and we were asking for in kind of 63. And the Senate mark was zero, and the House mark was 125. And so there's a big spread on this particular topic. On top of this, as someone who's highly focused on project management, both in environmental management and science, I think as you know the Office of Science has done in general a wonderful job on project management, and the ITER project has had some challenges. They have improved. And all these are data points that are out there. Another thing that we're obviously considering I think as you know that when you do a CD-0 and you look at what the science is supposed to move forward on, this is a project which is also taking a very long time and you start thinking about the science and whether what are we going to learn from the practical applied side versus the science side and the lithium blanket and tritium production versus what we're going to learn on confinement and plasma sides. We are actively engaged, and I think it's going to take a little bit more time than the budget rollout in terms of all the debates. This is a very serious discussion. It is being held at the highest levels. There is obviously---- Mr. Foster. You had mentioned that it was under review in the Administration. Mr. Dabbar. That's right. Mr. Foster. Can you--who were the scientists involved in that review in the Administration? Mr. Dabbar. The full Office of Science---- Mr. Foster. In the Administration, you said. Mr. Dabbar. Well, at the Administration side---- Mr. Foster. Yes, political appointees and above---- Mr. Dabbar. Yes, so---- Mr. Foster. --who are the scientists involved in that debate over ITER? Mr. Dabbar. Well, the scientists are coming from my office. At the White House, as you probably know, the office--the OSTP is not filled at this moment, and the input and the science is coming from DOE just to be--just to---- Mr. Foster. Okay. So---- Mr. Dabbar. --narrowly answer that question, but there was involvement from State, the National Security Council, OMB, and DOE. Mr. Foster. Well, there are two, you know, scientific committees. The National Academy---- Mr. Dabbar. That's right. Mr. Foster. --has an ongoing thing---- Mr. Dabbar. Yes. Mr. Foster. --and FESAC, the Fusion Advisory Committee, is I think---- Mr. Dabbar. That's right. Mr. Foster. --meeting this week if I'm not mistaken. Mr. Dabbar. They are. Mr. Foster. And so you are actually going to listen to those or will this be a political decision on the Administration? Mr. Dabbar. This is a decision in which science is going to be a big part. Obviously, there's also interest on the part of the European Union and others who advocate for this not only from a science perspective but from a broader perspective. And so all those. And, as you probably know, there's two National Academy reviews going on, one in which there was a draft out, and one which is still coming out that's a bit broader. All those are going to be inputs, which is why I think this decision is going to take longer than the budget rollout because we want to have all the data points. But it's being taken very seriously at a very high level. Mr. Foster. Yes. And it's your intentional to make it during this calendar year, this current calendar year? Mr. Dabbar. I believe so because it is very active. Mr. Foster. All right. Thank you. I yield back. Mr. Weber. I thank the gentleman for yielding. And, Dr. Abraham from Louisiana, you are recognized. Mr. Abraham. Thank you, Mr. Chairman. And, Secretary Menezes, it's an honor to have you representing, as a native son of Louisiana, in such a position of responsibility, so thank you for saying yes. The--I agree with you that it's a good thing that the hierarchical accountability has been somewhat changed in the DOE, and I applaud Secretary Perry for recognizing how evolutionary science is now and how quickly things can change. Secretary Dabbar, you mentioned on your litany of good things that are happening at the DOE in your opening statement of the gene editing that is taking place, so as you and I both know it started with the CRISPR-Cas9 science or breakthrough, and I'm told that also being on the Agricultural Committee that in a very short period of time, food supply will need to be three times what it is now just to supply the world with some food. And it is through this gene editing that I think we can meet that goal and move forward and actually feed the world. And without it, I think we have starving people globally, and that would be an unfortunate thing. Secretary Menezes, in your opinion in the applied energy offices, could you provide an example of the advancement in technology that could only be accomplished by the government? And on the flip side of the coin, what about investments and studies that are better suited for the private industry? Mr. Menezes. Well, certainly in the world of nuclear the INL lab is performing research that really can only be done funded by the government. That is--it's high capital expense. It's very technical. It's science-driven, and it is in support of what the industry is doing. So in the world of nuclear I think that we brought the very first nuclear reactor to generate electricity, so that continues to be an example. And your second question was? Mr. Abraham. Well, what about on the private side? What-- where can they be best suited as far as investments in technology innovation? Where are they better than the government? Mr. Menezes. So in fossil energy--our program office has done preliminary research on rare earth elements, and-- identifying and capturing rare earth elements from coal waste byproducts, for example. They did the core samples, they did the analysis, and they are now approaching creating ways to actually capture, produce, process, and make it eventually commercially available. The significance of that is that we would no longer be dependent on China for the majority of our rare earth elements. And so that's an example where I think with the program office, with a bit more work, we'll eventually I think hopefully commercialize that. Mr. Abraham. And it's my understanding that we're way behind China in rare earth elements mining and development and accumulation. Is that a correct statement? Mr. Menezes. We know that a large majority of the rare earth elements globally is produced by China. Mr. Abraham. And my follow-up question, the DOE national labs have consistently accomplished research and technology goals established by the DOE. Would you support DOE's research programs to develop specific goals or mission-oriented technological development in critical areas such as advanced nuclear reactors, advanced fossil fuel energy systems, and those types of deals? Mr. Menezes. Yes, sir. Our program officers regularly project timelines, technological achievements both in a linear fashion and goal-oriented to gain the advantages throughout the program offices. So it's in our DNA so to speak, and yes, you will have our commitment to do that. Mr. Abraham. Okay. Thank you. I yield back, Mr. Chairman. Mr. Weber. The gentleman yields back. The gentleman from Colorado, Mr. Perlmutter, is recognized. Mr. Perlmutter. Thank you, Mr. Weber. And, gentlemen, thank you for your service and thanks for your testimony today. And you've heard from particularly the guys from Illinois, who I think both of them want to be president of their Chamber of Commerce because they're very proud of their laboratories. Obviously, I'm very proud of the National Renewable Energy Lab in my district. And I've been encouraged by your testimony today. I'd like to ask both of you in 20 words or less, if you can do it, what you think, Mr. Dabbar, your mission is as the Under Secretary for Science. Mr. Dabbar. To move forward the bounds of knowledge that we know through execution of our research programs. Mr. Perlmutter. Okay. And, Mr. Menezes? Mr. Menezes. Well, to apply the science and the technologies that we develop to continue to ensure that our energy will continue to unlock economic prosperity for all. Mr. Perlmutter. Okay. And again, I'm encouraged by those mission statements and really by your testimony today. I mean, you know, my fear--and between--from one Administration to the next, there's going to be ebbs and flows between renewable energy and fossil fuels, between basic science research and maybe applied science research, and that's okay. My concern, and it--and I want to echo what Mr. Tonko had to say--is, you know, recently we--and I did a math problem for a panel a few weeks ago. There were two lawyers, so I picked on by brothers from the bar in doing the math problem, two scientists. My fear is after these big tax cuts that we just passed of $1 trillion, $500 billion at best and maybe $2 trillion, that your Department is going to be under siege to just cut like crazy. And currently, the EERE budget goes from about $2.07 billion to $636 million, so it's a 70 percent cut. Now, that's a little more than the ebb and flow that ordinarily occurs from Administration to Administration, but you gentlemen are going to be under a lot of pressure, given what we just passed here in Congress and that the President signed. So just to fiddle around a little bit, the math problem--so it's one and a half trillion. You know how many times $2.07 billion goes into that tax cut we just did? And I'm not going to mess with you. It's 750 times. So we have 750 years' worth of renewable energy and energy efficiency research that both of you just listening to your testimony--and you might move a little more to hydraulic fracking or how exactly, you know, combustion occurs, and that's okay. I just want to make sure that the missions that you both just stated you feel you've undertaken can be fulfilled. And I'll just open it up--you know, I'm going to put a question mark on that and ask you, Mr. Menezes, first, how you think you're going to be able to do that? Mr. Menezes. Well, I have come to learn, after having been counsel to an authorizing committee, that it is a very complicated process out there when it comes to actually implementing what an authorizing committee has authorized. Of course, the budget is a key part of that. OMB plays a big role in that. Your appropriators also play a big role in that. And so we're put in the position of getting over there---- Mr. Perlmutter. And you play a big role in that---- Mr. Menezes. We do. Mr. Perlmutter. --in how you want to affect your mission. Mr. Menezes. We do, and we find that we have to work with the appropriators and OMB. Within the Departments and within the labs--and you all have had oversight over this and you know how well the Department collaborates, has crosscutting projects and programs, and they're able to make the best with the resources that they have ultimately after the appropriators appropriate the money. Mr. Perlmutter. All right. Let me ask Mr. Dabbar how he thinks he's going to be able to continue this mission of, you know, really expanding the bounds of knowledge. Mr. Dabbar. You know, I had my first captain when I was in a submarine said, you know, ``The real mark of leadership is not having unlimited things to work with but is doing the best that you can with the resources that you're given.'' And that's how I've always looked at my life. The reality is the Office of Science has an almost unlimited set of things that it could go after. And every single day, no matter how much you all as appropriators give us, there is more to do and it is vast. And even within a bound, we as capital allocators working with you all in terms of advocacy trying to figure out where quantum computing fits versus light sources versus regular high- performance computing versus materials, fusion, it keeps going on. And so this is a topic that comes up no matter how much gets appropriated and have to balance all the different issues that we've just been talking about here today. And we're going to move things forward as much as the resources are given to us, and the reality is we will be flexible as appropriate at whatever is authorized, and we will be grateful and be good stewards of the taxpayers' funds. Mr. Perlmutter. All right. Thank you for your testimony and thanks for your service. Mr. Weber. Mr. Dunn, you're recognized for five minutes. Mr. Dunn. Thank you very much, Mr. Chairman. We've been enjoying the look in the future. I want to step back into the here and now just for a minute. I'm a physician. We use nuclear isotopes every day we go to work, and I've noticed in the last few years that America is struggling to generate the medical isotopes that we've already developed, but we have to go on and generate them day after day. And we've become dependent on Canadian reactors that are obsolescent, have been kept open well past their lifespan and on accelerators in Moscow that are decaying and so I would like it if you could give me--show me a little sunshine here on this. Tell me what we have got in the future to generate nuclear isotopes for medicine if you would. I'm thinking about things like, you know, rubidium and on the therapeutic side radium 223 and things like that. Mr. Dabbar. Clearly, there's more to do and frankly there's always more to do in the isotope side on the medical point. The isotope program for the Department--and I'm glad to have a separate meeting with you to go through all the details---- Mr. Dunn. I'd love to do that. Mr. Dabbar. But in reality it's partially run like a business. And we've actually been able to generate funds with an isotope program to expand facilities. And we have significant engagements with the market looking at isotope by isotope, seeing where the opportunities are and where to actually invest funds that, as we go and sell isotopes, where we reinvest funds associated with the sales to expand production. We have meetings--public meetings with public entities, and we actually had meetings with industrial partners at a vast amount of the healthcare industry to identify what they're looking at from a market perspective and what we could go and produce. So there's a very dynamic engagement between the two. Mr. Dunn. Yes, and I've been involved with that actually personally in my practice. I could tell you that it's--that we've had a great deal of rewarding time spent with some of your predecessors. I will tell you that the process is a little slower than we--and there are simply times we don't have the isotopes we need---- Mr. Dabbar. Yes. Mr. Dunn. --to diagnose and treat patients, so it gets down to the--you know, to the bedside. We really just--we run short. I'm going to--if I could go back to the future--maybe this is back to the past--talk about the next generation fission reactors, again, the generation four. We've had the two's, the three's, the light water reactors. I'm sort of fascinated--I'm wondering what we need to do to get the very high temperature fast reactors that--you know, that will reprocess some of the fuel that's now wasted, you know, expended fuel, we can reprocess that and also generate more. Can we not have a prototype of these? Mr. Dabbar. Right, and we have been discussing that this morning. Mr. Dunn. Yes. Mr. Dabbar. You know, if we had the adequate resources. We certainly have prioritized small modular reactors. We have also prioritized microreactors. We've prioritized trying to use the thermal heat from nuclear to create other products, so it's a top priority in our nuclear program. It is working with Congress and it is working with the Administration to get the right level of resources, but the labs are ready to go on it, as well as the program office. Mr. Dunn. I think there's a sense of excitement on both sides of the aisle here to see some progress in that area. Mr. Dabbar. There is, and we had mentioned also the NRC process, so we're excited to--if we can to get that process underway and through it. Mr. Dunn. Thank you. So in the minute remaining I'm wondering if you gentlemen would speculate a little bit about applied research on grid integration and grid reliability. What are we doing to address the--hardening our grid and also diversifying it so it actually meets tomorrow's electrical needs? Mr. Dabbar. Yes, we are doing quite a lot. And indeed at the--at NREL we have the computer modeling, as well as prototypes to a much more flexible and open system, so we get inputs from behind the meter to help bring new generation online to help shave load, et cetera. One thing is that the more we make our system open and flexible, we need to make it resilient, and we need to make it---- Mr. Dunn. Yes. Mr. Dabbar. --secure. So a top priority of us is to ensure that we develop the science on cybersecurity technology to--so as we make our system more flexible, more open, that we're also making a more secure, and that is a top priority. And the labs are doing quite a bit of work in both areas. Mr. Dunn. I look forward to hearing more from you in the future about that. Thank you very much. And, Mr. Chairman, I yield back. Mr. Weber. The gentleman yields back. The gentlelady from Oregon is recognized for five minutes. Ms. Bonamici. Thank you, Mr. Chairman, and thanks to the Chair and Ranking Member for holding this hearing and to our witnesses for being here. Last week, I visited the Portland office of the Pacific Northwest National Laboratory. The office focuses on greater energy efficiency in buildings; improved technologies for renewables, including wind, water, solar, and biomass; and also new vehicle technologies. Their innovative efforts should be a model for the industry nationwide. We've also in my State been a leader in marine energy and exascale computing, so I'm interested in hearing from our witnesses about how to advance these efforts. And I'll start with Under Secretary Dabbar. One of our nation's energy priorities should be making sure that America keeps pace with the rest of the world in developing exascale computing. That has implications, of course, for our national security and our competitiveness, so could you talk about what you are doing to further the developments in this area and how Congress can work with you to accelerate this priority? Mr. Dabbar. Thank you very much. Exascale is--of all the items when we go through our priorities in the Office of Science area underneath me--is number one. And we'd like to thank the Congress for appropriations and supporting that here over the last few years and focusing on that. It's--I think out of all the areas of the Office of Science and what we work on it's the area that is most competitive globally. And I think as you know, in the area of high-performance computing, China is really neck-and-neck with us on---- Ms. Bonamici. Right. Mr. Dabbar. --individual systems that are coming online. So it is a high degree of focus. We would like to thank Congress for its support of that. Obviously, we're trying to roll out three exascale computers. The first one will be in Illinois at Argonne, the second one would be at Oak Ridge, and the third one will be at that NNSA facility. I think this is a great example of cross-department and cross-lab support because lots of examples on that, but NNSA and science have an official formal MOU on exactly how to go attack this and how to roll it out and how to work together. A second thing that's highly important is diversity in architectures. I think as you probably know, at Argonne we had a certain set of suppliers around Intel and IBM, and when we roll out the second one, we want to make certain that we provide diversity and support the industry on moving technology forward on exascale by actually going and asking for different suppliers to make sure we have a different architecture to really have competition and really to have diversity. So this is a high degree of focus. Ms. Bonamici. Thank you. And, I'm sorry, I want to try to get a couple more questions in. I appreciate that that's a priority. Under Secretary Menezes, marine energy systems include wave, tidal, and offshore hydrokinetic systems. The Northwest National Marine Renewable Energy Center in Oregon is building the first full-scale wave energy test facility in the United States with financial support from the Department of Energy. Recent economic analysis from Ocean Energy Europe and Marine Renewables Canada estimate that the global marine energy market will be worth about $62 billion by 2050 and support hundreds of thousands of jobs in the supply chain. We know European governments and Canada are spending millions of dollars per year supporting marine energy technology. China is spending billions of dollars annually. The U.S. Department of Energy and the Navy's spending combined has peaked at a fraction of what is spent in other areas to support this nascent domestic industry. So will you commit to developing marine energy and support increased funding for research and development in this sector so we can compete in the global market? Mr. Menezes. Yes, you have our commitment to do so. We believe in all-of-the-above and the exciting potential advancements in this area. We will continue to support. Ms. Bonamici. Terrific. I appreciate that because there's a tremendous amount of potential there.I want to go back to Under Secretary Dabbar and ask about environmental management. In recent years the--I'm from Oregon but just to the north is Hanford of course. The environmental management portfolio has dominated the time and attention of whichever Under Secretary has had it in his or her portfolio, and this was part of the rationale behind Secretary Moniz's restructuring to place the responsibility under a single Under Secretary to deal with those environmental management issues. So the new organization now has you overseeing this largest nuclear waste cleanup effort in the world, and the DOE Office of Science, the single largest supporter of research in the physical sciences in the United States. So how will you balance this portfolio to ensure that each of these extremely important missions receives the appropriate amount of attention? Mr. Dabbar. Yes, I mean, first of all we have a lot of great people and we have a lot of depth in the Office of Science and Environmental Management. The second thing is, you know, in terms of the focus on environmental management, the big overlap between the two is technology and project management. If you look at what actually the Office of Science does and what Environmental Management does, to a large degree it's contractor management, it's contracting, and it's project management. And they both do that very well. As I think you know, the Office of Science has an excellent set of experience on project management and costing. They have a lot of technologies that can be applied to environmental management, and we intend to merge those together. One other particular area--I sat on the Environmental Management Advisory Board for 12 years. I've been to Hanford many, many times. I started my career in nuclear engineering as a Radcon worker, and so I have personal experience also at managing those topics, know very much when topics come up exactly what the technical issues are and how to attack them. So I think we feel very comfortable around those together and the sort of skill sets that have overlap and the sort of people who are running them. Ms. Bonamici. I thank you. My time is expired. I yield back. Thank you, Mr. Chairman. Mr. Weber. I thank you, ma'am. The gentleman from Louisiana, Mr. Higgins, is recognized. Mr. Higgins. Thank you, Mr. Chairman. There has been a great deal of discussion on this committee today regarding budget and adequate resources. Mr. Chairman, we must decrease federal spending. It's our duty as a body to protect the people's treasure, and I remind my colleagues that we do serve a nation that's $20 trillion in debt. I certainly believe in an all-of-the-above energy policy, and I'm encouraged by the restructuring of DOE with an eye towards efficient service, doing more with less, and getting things done through private and public partnership. It strikes me that the iPhone that we use was a private endeavor. SpaceX is building towards a launch weekly. It's a private endeavor. Carbon recapture technology to produce energy onsite in the petrochemical industry and oil and gas industry was a private endeavor. So I believe that this focus on public-private partnership is the right direction for us to move to have a more efficient federal government that serves the American people. The pathway to the future certainly begins in our laboratories. As an example, in 2016, China developed a tabletop-sized laser that would--that managed a burst of laser light that developed 5.3 petawatts--that's 5.3 million billion watts roughly 500 times the power of all the world's electrical grids combined. That was a burst of less than a trillionth of a second. So the truth is that none of us here know where energy is going, but we do know that that pathway leads through our laboratories. And I'm encouraged with the focus on public- private relationships. How does the Department--for--Mr. Dabbar, this is a question for you, sir. How does your Department plan to assist with the implementation and recommendations to improve flexibilities and streamline the national laboratory system based on the Commission to Review the Effectiveness of National Energy Laboratories or the CRENEL report? Mr. Dabbar. Yes, thank you. So the CRENEL report, which I certainly have reviewed several times, I think is a very important guideline for us and management of the national labs. One of the things that it recommended that we're currently executing on is contract--M&O contract restructuring. I think, as you probably know, over the course of time I think administrative burdens on our laboratories had increased and the CRENEL report certainly recognized that. And the Department worked with one lab to start off with in terms of restructuring contracts to try to reduce the administrative costs, and we did this first at Stanford. And so at the SLAC facility we took their contract, worked with them for quite a bit. There was some help with the Berkeley lab next door up the Bay area on redoing that contract, and we've done that and it's working. And we intend to roll that out to other contractors to try to reduce the administrative burden, to have people focus on the mission rather than Administration while still having appropriate oversight. And so we certainly intend to do that. Second, I want to point out is that when the Secretary came in, he pointed out that obviously with--give or take 100,000 people between federal employees and contractors that report through the DOE complex, that there's probably various administrative points that are also impeding it beyond the M&O contractors. So we are now in phase II. We've already gone through phase I of identifying, having a cross group of contractors, lab directors, people inside the Department to identify things of that in terms of structural layouts, in terms of administrative points that either impede the mission, and we take--we're taking really a bottoms-up input from everyone on how to reduce the administrative costs and things that the stand in the way of the mission, and we very much are moving forward on finding very specific things to attack and how to improve and streamline the Department with groundswell support of that data. Mr. Higgins. Thank you for that very thorough answer and encouraging. Mr. Chairman, in the interest of the conservation of time, I'd like to submit my question to Mr. Menezes in writing. And I look forward to your response, sir. The question will be relative to the security of our grid and the use of existing proven energies, fossil fuel energies, and nuclear. Thank you, Mr. Chairman. I yield back. Mr. Weber. Without objection, the gentleman yields. The gentleman from California is recognized. Mr. Takano. Thank you, Mr. Chairman. The Department of Energy is currently four Energy Innovation Hubs, and the establishment of a fifth hub focused on the critical cross-cutting issue of energy--of the energy- water nexus, and that was supported by Congress and signed into law by the President as part of the Consolidated Appropriations Act for 2017. These unique consortia bring together academia, industry, and the government to solve unique challenges. Yet without any clear justification provided, the Trump Administration has proposed to eliminate all of the hubs in its fiscal year 2018 budget proposal. Can either one of you provide me with an explanation for why this Administration--why it is the Administration's position to end the hubs model that has experienced so much success? Mr. Menezes. Well, as previously mentioned, we weren't involved in the budget process for fiscal year 2018. Mr. Takano. Well, if you don't have an answer, I'd like to move on to another question, and then you can come back to me with a--you know, an answer after you've had a chance to review it. All right. Thank you. I want to ask another question here about energy storage. We've seen great strides and we have interest on both sides of the aisle here. Dr. Dunn is very interested in this issue as well. We have seen great strides in battery storage energy in the last 5--last few years, but many of the largest improvements that have brought costs down have come from improvements in the manufacturing process. Conversations that I've had with the experts in this field agree that we need a few major breakthroughs in the actual research of the chemical composition and batteries themselves for us to realize the great potential of battery energy storage. Do you see energy storage research as early-stage research or will the Department continue to commit--and will the Department continue to commit to supporting energy storage research? Mr. Dabbar. I can say that it is a high priority of the Department. It's a high priority across all our program offices, and I would say back to your second-to-last question it is a mix of early stage and what I will call mid-stage. There's multiple different types of technologies that we have, and we're moving forward on some that are at the basic level and we think have a high degree of possibility. And we have some that are farther down the road. And as I mentioned earlier, we have a lot of engagement with the likes of United Technologies, Dow, General Motors on some of those, and we---- Mr. Takano. That's---- Mr. Dabbar. --we're fully supportive of that. Mr. Takano. Well, that's wonderful. Does that mean that you see it as a mix of some early--the part I mentioned about the chemical composition? That sounds like a good candidate for early stage--would fit in the category of being funded? Mr. Dabbar. Yes. Mr. Takano. Thank you. Last week, Moody's Investors Service released a report stating, quote, ``U.S. coal production will continue a steady secular decline without policy support for and continued investment in carbon capture and storage technology,'' end quote. The fiscal year 2018 budget proposal included major cuts to FE's research activities, including cuts of over 80 percent to carbon capture R&D and carbon storage research with advance energy systems receiving a nearly 60 percent cut. But mostly these cuts were rationalized with a simple line about how industry can better commercialize these technologies and methods. I think the American people, especially those in coal States, are quickly realizing that the rhetoric this Administration uses to bring coal back might just be all talk and no action, especially as expressed in the Department of Energy's budget. Can you expect a declining industry with limited long-term risk tolerance to just immediately invest hundreds of millions of dollars into high-risk R&D to commercialize carbon capture technologies? Is that a rational expectation of us? Mr. Menezes. Well, it has been public-private partnership. All of the carbon capture and sequestration projects have always had some part of the project---- Mr. Takano. So are you saying Moody's is wrong that it's not going to require a steady--that the secular decline is not going to be stanched unless we make a major investment? Mr. Menezes. No---- Mr. Takano. You're telling me that major investment is going to happen from an industry that has a low-risk tolerance here? Mr. Menezes. No, I'm not saying that, but what I'm saying is---- Mr. Takano. So you're not saying Moody is wrong? You agree with Moody's statement? Mr. Menezes. I don't have an opinion on Moody. Mr. Takano. Well, it's their statement. ``U.S. coal production will continue a steady secular decline without policy support for and continuing investment in carbon capture and storage technology.'' Mr. Menezes. Right. Mr. Takano. That's a simple statement. Mr. Menezes. Right. The question is--if I can, it's--we fully support the carbon capture and sequestration efforts as past Administrations, and we continue to do that now. We have projects that are out there right now. We have Petra Nova. We have other facilities out there. It's going to be a question of resources. But it's not a question of whether or not we support carbon capture and utilization, carbon capture and sequestration. We---- Mr. Takano. Mr. Menezes, I would suggest to you that this budget reflects an all-talk-and-no-action response to the people in coal States that were promised things. That's my suggestion to you. Mr. Menezes. Well, the Administration has done some things. They've lifted the coal lease moratorium, for example, so that alone is helpful. At least now the Department---- Mr. Takano. Moody's goes to--I mean, that's a pretty big statement there about a steady secular decline---- Mr. Menezes. Right. Mr. Takano. --without major investments. Mr. Menezes. It's true the industry has been on the decline---- Mr. Takano. And your Administration is recommending a huge 60 percent, 80 percent cuts in these programs. Mr. Weber. Would the gentleman like to continue to seek financial advice after the hearing? Mr. Takano. I'm not seeking financial advice, Mr. Chairman. I'm--this is a market newsletter that is saying that this is what's going to happen. Mr. Weber. Let's--the gentleman is---- Mr. Takano. I'm not trying to seek advice here. I'm just trying to get--suss out here---- Mr. Weber. Your--the gentleman's time is expired. Mr. Takano. Well, I see. Thank you. Mr. Weber. Thank you, Mr. Takano. Mr. Takano. Thank you. Mr. Weber. The gentleman from Alabama, Mr. Brooks, is recognized. Mr. Brooks. Thank you, Mr. Chairman. Mr. Menezes, is sustainable nuclear power a key component of electricity production in America? Mr. Menezes. Yes, it is. It's almost 20 percent of our electricity. Mr. Brooks. And how many nuclear power plants are currently under construction under this Department of Energy? Mr. Menezes. Well, we have the Vogtle plant---- Mr. Brooks. In Georgia? Are you aware---- Mr. Menezes. --in Georgia. Mr. Brooks. --of any others? Mr. Menezes. Not that I'm aware of. Mr. Brooks. What does the Department of Energy do to encourage construction of nuclear power plant new construction efforts? Mr. Menezes. Well, on the energy we have been talking about this morning about what INL has done with respect to trying to move along the technologies involved in the small modular reactors and the micro modular reactors, so we are doing research there. We're also working with the NRC to ensure that we can get licensing out of it timely so that we can bring some of these projects to market, so those are a couple of examples where we're trying to foster that. Mr. Brooks. Is the Department of Energy also involved in any way with funding, either tax credits or loan guarantees or anything of that nature, with respect to nuclear power plants? Mr. Menezes. Well, I know Congress is considering tax credits with respect to nuclear. I know in the past it has been there. I'm also aware of the Loan Program Office and the loan guarantees that have been there to assist nuclear projects. So the government has stepped up where to can to help facilitate the construction of nuclear facilities. Mr. Brooks. Well, with respect to what the Department of Energy is doing of which you are aware, how many new power plant--nuclear power plant constructions do you anticipate going online in the next year, two, or three? Mr. Menezes. Well, Vogtle is the one that I think we're all looking at. Mr. Brooks. But I'm talking about new ones. Mr. Menezes. No. Mr. Brooks. Oh, you're not aware of any successful efforts by the Department of Energy to start new nuclear power plants? Mr. Menezes. I'm not aware of any construction underway. Mr. Brooks. Well, I'm talking about not underway right now other than Vogtle because you've mentioned that one. I acknowledge that one in Georgia, but I'm talking about startups, new startups after Vogtle, are you familiar with any? Mr. Menezes. Specific projects? Other than the small modular reactor that I had referred to earlier in Idaho. Mr. Brooks. Are you familiar with the Bellefonte nuclear facility in Jackson County, Alabama, in my Congressional district? Mr. Menezes. I'm not aware of that. Mr. Brooks. Let me give you a little bit of information about it. American taxpayers, particularly TVA ratepayers, have already spent over $5 billion on the construction of that nuclear power plant. For whatever reason, the TVA last year decided to sell it for $111 million, probably resulting in Bellefonte being one of the worst if not the worst federal boondoggles in the history of our country with a $5 billion loss on their books to show for it. The Bellefonte facility was sold to Nuclear Development, LLC, as I mentioned, for $111 million with the principal owners behind Nuclear Development being Franklin Haney and the Haney family. It is projected if he's able to complete it and turn it into an operational nuclear power plant to create 2,000 permanent jobs and roughly 4,000 construction jobs. There seem to be two barriers that we need to overcome--at least two that I'm aware of--to get this $5 billion facility put into operational form. One is a ruling that the TVA, if it wants to--can if it wants to--purchase power from Bellefonte at whatever rates TVA and the owner of Bellefonte can agree to. Do you have any reason for the Department of Energy not to support that kind of arrangement where the Tennessee Valley Authority can, if it wants to, have the right to purchase power produced at the Bellefonte nuclear facility if nuclear development should complete it? Mr. Menezes. From the Department's point of view I'm not aware of any objection that we would have with it. Mr. Brooks. Well, would you personally be willing to support TVA having the right to purchase nuclear power electricity generated at Bellefonte should it be completed if TVA wants to, not compelling them to but it would be a market decision if they want to? Mr. Menezes. I am certainly willing to get with you and your office and other interested parties to understand this fully and to see if the Department needs to in any way be involved in it. Mr. Brooks. And does the Department of Energy have any position on whether Nuclear Development, LLC, should have any access to any Department of Energy tax credits and/or loan guarantees with respect to the financing for this nuclear power plant, keeping in mind that federal taxpayers, TVA ratepayers, have already spent over $5 billion over three decades trying to get this facility operational? Mr. Menezes. Yes, I'm not aware of any applications in our Loan Program Office at this time so---- Mr. Brooks. Well, would you please look into that and get back to me? Mr. Menezes. I will. Mr. Brooks. Apparently, that is one of the issues with respect to the completion of the Bellefonte nuclear plant is that we can get that thing online and so we can produce about 2,000 jobs in the Jackson County area of Alabama. If you could look into these issues that I've raised and respond, I'd very much appreciate it. Mr. Menezes. I will. Thank you. Mr. Brooks. Thank you. Mr. Weber. The gentleman from South Carolina is recognized, Mr. Norman. Mr. Norman. This is for Mr. Dabbar. And I would just echo what Congressman Brooks said. Our district is similar to yours, the V.C. Summer Project, where it's been abandoned, $10 billion public-private money, mainly private money, $1.9 billion loss with no return on it. It's a huge problem in our State. But my question concerns the Savannah River Site. You know, it's not in my district but it covers 198,344 acres, 310 square miles. It's being held up on the Advanced Manufacturing Collaborative project in Aiken. Can you shed some light on what the holdup is and what we can do to get this unlocked? Mr. Dabbar. Yes, Congressman. We are in full support of that--of AMC. We know it's--it would have a tremendous impact on the community. We think it has--it would have a very strong impact on technology and the future mission of SRS. In 2016, it was a leased structure. A financing structure was proposed. There was some feedback around the accounting associated with it. This is a very technical accounting topic. Just this week, we finalized the changes that we thought would accommodate OMB on the particular financing structure, and we resubmitted it. We're waiting hopefully for relatively prompt feedback from them on what we think they have a good chance for approving. Mr. Norman. How do you define relatively prompt? Mr. Dabbar. We asked for it in the next month. Mr. Norman. Okay. Do you think we'll have something within, let's say, 45 days that we can rely on and take to them? Mr. Dabbar. I certainly hope so. It's a high priority of ours. Mr. Norman. Perfect. I yield back, Mr. Chairman. Mr. Weber. I thank the gentleman. The gentleman from Kansas is recognized. Mr. Marshall. Yes, thank you so much, Chairman. I want to talk about energy success stories, though, to kind of change the mood of the room. I represent one of the most energy-rich, energy-diverse States in the union, Kansas, and we contribute to this concept of energy independence, which is a national security issue. And we're blessed with some rich oilfields, natural gas. Those people are becoming more precise, more efficient in their efforts, and cleaner every day. We have more sunny days in Kansas than Florida does, and we think we have great potential for solar energy, but I want to lock in on wind energy for a second. Wind energy now represents about 35 percent of the energy production in Kansas, and we're now able to export energy. We're happy to send that energy down to my friends in Texas and up to Chicago as well. I remember sitting in a Rotary meeting 25 years ago when the person that ran that--ran the local co-op for energy production said, ``My gosh, wind energy will never work. It just--it doesn't blow all the time, and we'll never be able to solve the problems.'' So now we have those windfarms pretty much across the State of Kansas, and as we know, the wind blows somewhere in Kansas most every day. And now, we're building those interstate highways of being able to generate--being able to transport that energy down and out, which has been a big challenge for us. My people tell me that right now, we're probably 30 percent more efficient with wind energy by just the divine of the turbine and the shears and stuff. I guess my first question for Secretary Menezes is what type of future do you see for wind energy and support of technology and development research in the wind energy sector? Mr. Menezes. The future is bright for wind. You know, at NREL they are doing modeling right now to actually apply science to the turbulence in the placing and actually operation of these units to actually increase the efficiency capacity, for example, of those existing units that are currently operational and in the future siting, so we'll be able to have even more efficient siting of them. Also on the--wind has been such a big success story just for our manufacturing base. I mean, in the mid-'90s we really had no manufacturing whatsoever and now over 90 percent of the components are manufactured in the United States and they're spread out all over the United States. You know, one of the components is the nacelle, and so we hope that while we import a lot of the component parts of the nacelle in the wind turbines that we're hoping that with our labs we can actually be able to do more efficient manufacturing so that we can really just manufacture them here and not have to import them. So it's very bright. And as you know, the labs did some initial breakthrough technology on the airfoils, which is why we're able to achieve the increased efficiencies we have today. Mr. Marshall. Well, thanks for your continued support of the research there. My next question for Secretary Dabbar. We introduced a low- dose radiation bill not too long ago, and that research had been abruptly stopped by the Obama Administration. As a physician, I see more and more of my patients exposed to radiation, whether it's a CT scan in the ER and just wonder if you can commit to support that reinvestment that we're hoping to authorize some time for this low-dose radiation research? Mr. Dabbar. Yes. And--yes. As someone who's gotten a lot of low-dose exposure in the nuclear power sector over the course of my life, I certainly support the need associated for low dose, and I certainly reviewed the bill that was proposed last time and know a little bit about the history of this at the Department before we were there. And should the appropriators here and authorizing committee move that forward, it is an important area, and we have resources to be able to restart that program if it is appropriated. Mr. Marshall. I think I'll finish up with just a question about battery technology if I could say what's holding back solar energy and making wind energy even better is some research in the battery. And you kind of alluded to it. And I just can't help but pontificate for a second and say that without a growing economy, none of this research happens, and I'm so proud that this economy--three quarters in a row with three percent GDP growth, maybe four percent this quarter, whether you want to build roads, bridges, you think education is important, if you think energy research is important, we need a strong economy, and I'm so proud that this country is moving back in that direction. Can any of you speak to what you see for battery storage power for the wind energy and solar energy of the future? Mr. Menezes. No, again, the only upside, right our battery technology we have a variety of different options. We have those that are nearing market that will increase efficiency, and we have basic research that's going on in our program offices and our labs that may come up with all new types of chemicals and types of batteries in the future. We have the Beyond Lithium program, for example. So we see a bright future, but we do see there's a bit of urgency in here because really it's the battery technology that will be the breakthrough technology that will certainly--with respect to electricity distribution it will solve a lot of deciding problems that we have today, so we're all looking forward to breakthroughs and commercialization of battery technology. Mr. Marshall. Yes, thank you. And I yield back. Mr. Weber. I thank the witnesses for their testimony and the Members for their questions. The record will remain open for two weeks for additional written comments and written questions from the Members. The hearing is adjourned. [Whereupon, at 12:18 p.m., the Committee was adjourned.] Appendix I ---------- [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]