▶ 0:18:32Subcommittee on energy and commerce will now come to order, and the chair recognizes himself for five minutes for an opening statement. Welcome to today's hearing on the department of energy's fiscal year 2027 budget. And welcome back to you, Mr. secretary, to the energy and energy subcommittee of the energy and commerce committee. Almost 14 months ago, you inherited a department that was not serving the strategic needs of the nation. The previous administration lacked a realistic national energy security strategy.
▶ 0:19:00They wasted billions of dollars reducing reliable energy and making our energy systems ill prepared to meet this historic moment of the next generation economy. After more than a year at the helm of our energy department, things look very different under your leadership, our nation's energy strategy prioritizes core responsibilities of energy and national security. Reliable power, affordability, and economic growth. You charted a path to ensure us leadership and future technologies that are reshaping the global order.
▶ 0:19:33Finite taxpayer resources have been shifted to focus on abundant, reliable energy expansion. You've harnessed doe's computing power to ai to use for societal benefit. You've accelerated work on nuclear technologies, increased collaboration to secure the grid during emergencies, and increased resources on our nuclear deterrent. You've also refocused the department's loan program on energy expansion and reliability.
▶ 0:20:02Most of these actions are reflected in doe's proposed budget. These efforts couldn't come at a more important time. International conflicts and decisive military actions by the trump administration to protect our our nation have put increased pressure on ensuring a secure and reliable energy system. While doe has diligently worked to focus on essential energy and security priorities, more work remains.
▶ 0:20:29Affordability continues to be a key concern facing american families. We'd like to get your perspective today on the impacts on oil prices from the conflict with iran, and what the prospects for more stable supplies would mean. And we should also impact the forces behind higher energy costs. Average utility bills rose by 11% in 2025, after increasing by 29% in four years prior and substantially higher across our nation's blue states.
▶ 0:20:59In fact, recent reports from the lawrence berkeley national lab confirmed that far left policies are driving price increases that are burdening households and businesses. We should examine how misguided policies leave our communities vulnerable when they need electricity the most, and what deal we is doing about that. Recent weather events during winter storm fern exposed the risk of overreliance on weather dependent energy.
▶ 0:21:24Doe's decisive 2o2c orders and effective emergency planning were critical to protect against blackouts, ultimately saving lives and preventing billions of dollars in economic damage, while mismanaged public policies disrupt our power sector. Historic projections of demand growth from data centers and reshoring manufacturing continue to climb.
▶ 0:21:47Data centers alone could consume up to 17% of the total electricity, which is also 60% higher than estimates projected in 2024. Importantly, doe has taken several steps to ensure data centers can connect to the grid in a way that drives down prices and does not burden ratepayers with additional costs. The subcommittee has spent considerable time examining this historic load growth, and what type of energy system is needed to fuel data center demand without fail.
▶ 0:22:18Experts across the field have testified that the answer is dispatchable, reliable and affordable supplies of baseload power. In recognition of these needs, the department has prioritized dispatchable resources that power next generation technologies and can keep the lights on when we most need it. Alongside these efforts, the department has focused on ushering in a nuclear renaissance.
▶ 0:22:42This ranges from your work to accelerate the development of american nuclear fuel infrastructure, and of reprocessing used fuel to your work to demonstrate more new, new, new reactor designs. We should examine how your work will dovetail with the nuclear regulatory commission's commercial licensing to provide a robust, safe process for nuclear expansion.
▶ 0:23:04While the previous administration sought to end the use of fossil fuels, your department has unleashed american energy like liquefied natural gas and reversed unnecessary regulations that attack fossil fuel use. I look forward to the discussion today on how your energy and technology priorities, priorities will benefit the american people, and I yield back the balance of my time and recognize the gentlelady from florida, the ranking member of the subcommittee, for five minutes for an opening statement.
▶ 0:23:35>> thank you, Mr. chairman. Welcome, Mr. secretary. Mr. secretary, the policies of the trump administration have made life very expensive for our neighbors back home. It is truly soul crushing what they are experiencing right now. Electric bills are way up under the trump administration. Household electric bills have risen as much as 13% nationally, and utilities are imposing massive rate hikes.
▶ 0:23:58Trump's war in iran has sent an energy shock rippling through the economy with huge price spikes of energy. Inflation is up 10.9%. That's the highest in 20 years. Gas prices jumped 21 over 21% in march alone, the biggest increase since records began in 1967. Americans are grappling with wildly higher gas and diesel prices.
▶ 0:24:24And, you know, consumer goods are transported across the country by trucks running on diesel. So folks are bracing for higher costs for consumer goods to. The pain in the pocketbook comes at a rotten time for hard working americans. They're already paying more due to arbitrary and illegal trump tariffs. Uh, and over the past few days, republicans have been celebrating the big ugly bill.
▶ 0:24:52But the impact has been devastating when it comes to energy bills for our neighbors back home. Because to pay for tax cuts for billionaires, republicans and congress rolled back many of the clean energy initiatives from the inflation reduction act, which have been helping consumers save on energy costs. The trump administration and the gop eliminated tax credits for solar, wind, electric vehicles and home efficiency upgrades.
▶ 0:25:23So altogether, what is happening is you're really sticking hard working americans with higher electric bills. And despite on top of all that, despite higher energy demand, the need to lower prices, the department of energy has effectively killed cleaner, cheaper energy projects, some fully permitted and under construction, to the point that the country in many places is grappling with a shortage of power and ratepayers are are paying even higher electric bills.
▶ 0:25:50And it's troubling that the doe is making it all the more expensive by forcing expensive, dirty coal plants to stay online counter to the plans of utilities, state regulators and grid operators. Due to the cost of ongoing operation. But do you know who's making out like bandits through all this? Oil and gas executives?
▶ 0:26:12The wall street journal recently reported that trump's war in iran is yielding a windfall for american's top oil executives, particularly ceos who have pocketed. Get this over the past couple of months, $1.4 billion. When the chevron chief executive sold shares, he pocketed $104 million. Conoco phillips ceo netted about 54.3 million in march alone.
▶ 0:26:40The ceo of baker hughes sold about $33 million worth of stock during the same month. Uh, trump, the trump administration and fossil fuel executives certainly have consumers over the barrel more ways than one. You know, this trump energy crisis almost seems intentional.
▶ 0:26:59Uh, and this is a context for the president's proposed budget, aside from the nnsa, you're proposing an 11% cut in areas that help consumers save, like full elimination of the low income home energy assistance program and the weatherization program that this committee reauthorized in a bipartisan fashion. Last year, you proposed to cut initiatives for critical minerals, geothermal energy, and hydropower.
▶ 0:27:29Those are bipartisan that we all support. That seems, um, backwards as usual. As usual, the only thing that the administration reliably supports are polluters. The president's budget proposes 23 million to subsidize the dying coal industry. It requests over almost $2 billion for a new base load power account to preserve coal, oil and gas industries. At best, the policy priorities from the doe and the administration are incoherent.
▶ 0:28:00At worst, they pose real risks to us energy reliability and resilience. You know, you've lost a lot of employees. They were dodged. Uh, they were fired. Now doe faces a historic labor shortage. It calls into question whether you can administer the law as congress intended. You've now you've lost so many people that now, rather than address it, you request new power for political appointees alone to make these decisions.
▶ 0:28:26And this opens the door to more corruption and grift that has become the hallmark of the trump administration. This budget does nothing to help hard working american families. In fact, it actively hurts them. It's a budget that will leave the united states further behind. Our competitors in the global energy race, while callously telling americans, good luck to you as they continue to scrape by. Our neighbors back home. Deserve better, Mr. secretary.
▶ 0:28:52They deserve cheaper, more affordable, reliable, clean energy. I hope you can answer these questions because we have a lot of them today, I yield back. >> thank you very much, gentlemen. Ladies, time has expired and the chair now recognizes the gentleman from kentucky, the chairman of the full committee, for five minutes for an opening statement. >> thank you, Mr. chair. And thank you, Mr. secretary, for being here. Glad to have you before us today.
▶ 0:29:20Your testimony is is especially important given the timely world events and the impact on energy markets as, uh, as the trump administration came into to, um, to being and our committee reformed this last year, we were able to get the energy policies in place that got oil down to about $60 a barrel. And that was never anywhere close during the biden administration, where people had affordable access to energy.
▶ 0:29:46But we do know with iran choking the flow of oil, gas and other critical markets, uh, that has raised the price of energy for europe for us and product trouble getting products to europe, to asia and other markets. And we're facing a crisis now of energy prices. But the stability and the place we have is $60 barrel oil. That's where we should get back to when we get beyond where we are.
▶ 0:30:09And we've been, um, the department of energy was, was organized for this specific, uh, reason right before the islamic revolution in iran. And we've all long known about iran's explicit threat to america and to our allies. And we all knew that it had to be addressed. And president trump has addressed it. But clearly, iran's disruption of global markets is increasing prices here at home.
▶ 0:30:33So understanding how doe is addressing supply constraints as a result and how it's worked will help ensure long term affordability will be part of our discussion today. And of course, there is, uh, but one of many pressing issues, china, china still threatens to disrupt geopolitical relationships around the world and to overtake technological leadership, particularly in the race for ai dominance and innovation. And here at home, our nation still faces tremendous new demand for energy.
▶ 0:31:03There's a burning need to revitalize an energy system long suffering from misguided policies that undermine reliable, affordable power and prioritize technologies that depend on taxpayer subsidies and handouts. Success requires energy addition, building the reliable, affordable systems that leverage our abundant sources of energy is critical. So, Mr.
▶ 0:31:27Secretary, you testified last year that access, quote, access to an abundant and reliable energy supply is a key ingredient to unlocking prosperity and ensuring human flourishing and innovation, unquote. That's refreshing and powerful message should be at the center of our nation's energy policy. In doe's technological work, let's focus on how best to do this. I'll yield back. >> thank you.
▶ 0:31:52The gentleman yields back, and the chair now recognizes the gentleman from new jersey, the ranking member of the full committee, for five minutes for an opening statement. >> thank you, chairman latta. The trump administration's energy policy secretary. Right, has been an absolute failure. Energy prices of all kinds have skyrocketed. Energy reliability is under threat. Pollution is getting worse for the first time in decades. And, Mr. secretary, it's all the trump administration's fault.
▶ 0:32:16The list of disastrous policy failures from this administration is long, but one of the worst offenses has been trump's reckless war in iran. Since day one, there's been no plan. In fact, the strategy changes by the day and by each deranged social media post from the president. First, trump says he wants to open the straits of hormuz, and the next day he says he wants to blockade it.
▶ 0:32:38And his erratic policies has sent global oil prices skyrocketing, and american drivers are now paying more than $4 per gallon each time they fill up their tanks. While diesel prices have reached over $5 per gallon. And trump's war caused the largest monthly increase in gas prices in nearly 60 years, and there's no relief in sight. The average household is expected to spend $740 extra on gas this year.
▶ 0:33:03Making matters worse, the trump administration's initial response was to unleash sanctioned russian and iranian crude upon the world, rewarding two of the worst actors on the international stage, including the one the administration is actively fighting a war against. Even in the last week, the president has floated a plan that would allow iran to collect billions of dollars in tolls for traversing the straits of hormuz and the. President trump's started this war promising that the iranian regime would fall. But clearly that's not happening.
▶ 0:33:30This war is an unequivocal disaster brought on by this president. And throughout all this chaos and volatility in the markets. Secretary, write, your social media account was saying that the us was escorting ships through the strait of hormuz, and then the white house said it wasn't true. I don't know, it just doesn't seem like anybody can get their act together. And you seem more interested in increasing the output of venezuelan oil producers than addressing energy security challenges here in the us.
▶ 0:33:58And the trump administration's energy policy has firmly put america last. So much for the promise of america first. It's america last. And it hasn't just been foreign policy. Republicans disastrous domestic energy policies have put america last. Two electricity prices have increased at twice the pace of inflation. Natural gas prices are up 12% since the president took office last month.
▶ 0:34:21Energy prices caused inflation to reach its highest level in two years, and tens of millions of americans are already struggling to afford their power bills. And last year, utilities requested $31 billion in rate hikes. And rather than trying to soften the blow for americans, the department of energy under your leadership has only made things worse.
▶ 0:34:40Doe has attacked energy efficiency standards, canceled or delayed clean energy projects, slowed down important cost saving programs like the home rebates program and the weatherization assistance program. Just 36 hours ago, my staff received a 40 page list of grants that doe has decided to retain or modify after leaving these grantees hanging for over 15 months.
▶ 0:35:03And these are projects that would strengthen the grid, build out clean energy manufacturing, reduce our reliance on foreign supply chains. But many have not heard a word from the department for over a year, and this period of limbo has seriously jeopardized the viability of many of these projects. I mean, look, the bottom line is you can't rob a bank, then give 90% of the money back and expect a thank you. There isn't going to be any thank you. For me.
▶ 0:35:29Making matters worse, your administration has directly increased electricity prices by hundreds of millions of dollars in certain regions of the country to keep coal plants online. Unfortunately, as a report last week showed, three of those plants you demand to stay online didn't produce a single megawatt of power. And yet american families in those areas are seeing their electricity shoot through the roof. Um, it's a perfect summary of the trump administration's policies with high costs and zero benefits.
▶ 0:35:59So, secretary, during your time with the department of energy, there has been a drastic and unprecedented decline in energy security and affordability for all americans. And today's hearing is about ensuring that you are held accountable for what's happening on your watch and not continuing the steep price increases that american families face every day. And so with that, Mr. chairman, I yield back the balance of my time. >> well, thank you very much. The gentleman yields back. And this concludes member opening statements.
▶ 0:36:28The chair reminds members that pursuant to committee rules, all members opening statements will be made part of the record. Also just to you know, I think all the members already know we have four votes series today. We have one coming up at 1130. They're anticipating not getting off the floor until 1215. We have a 130, 315 and a 5:00.
▶ 0:36:46And, uh, so, you know, as always, when we end the, uh, the second or the first vote series on the last vote, uh, we'll be back in our seats ten minutes after the vote is called. Also, as everyone knows, I'm going to have to make sure that I'm cutting people off at five minutes so members can keep getting there. All members can get their questions in. So be cognizant of that because I will gavel at five minutes on your questions.
▶ 0:37:14Again, we want to thank the secretary for testifying before us today, and you will have an opportunity to give an opening statement followed, followed by a round of questions from our members. And our witness for today's hearing is the honorable chris wright, the secretary of energy at the us department of energy. Mr. secretary, we appreciate you being here today and you are recognized for five minutes for an opening statement.
▶ 0:37:40So just pull that mic up close, and we appreciate you being with us. Chairman. >> ranking member castor and members of the committee, thank you for the opportunity to testify today on the president's fiscal year 2027 budget for the department of energy. Under president trump's leadership, we have put the department back on mission, delivering affordable, reliable and secure energy for the american people. Let me highlight what that looks like.
▶ 0:38:10We have taken decisive steps to restore grid reliability using emergency authorities under section 202 c of the federal power act, we kept baseload critical generation online after doe analysis warned outage risk could increase by 100 fold by 2030.
▶ 0:38:29If we had continued the biden administration policies, this action and the critical market response to our action preserves 17gw of critical dispatchable generation for the american people.
▶ 0:38:43Hundreds of american lives were saved by these actions during winter storm fern historic cold drove record heating and electricity demand, dispatchable energy, natural gas, coal, hydro and nuclear were the mvp's of the grid in new england.
▶ 0:39:01At peak demand, hydrocarbons, hydro and nuclear provided 95% of power, wind, solar and batteries combined provided 2% less than burning wood and trash. The lesson? When reliability is on the line, dispatchable energy shows up.
▶ 0:39:22We have worked to establish american energy leadership globally since president trump ended the previous administration's reckless lng export approval ban. The department has approved more than 19 bcf a day of new export authorizations, which is more than the entire capacity the united states had on inauguration day last january.
▶ 0:39:46The united states is the global leader in lng exports and will become even more dominant under president trump's leadership. This is a win for america, a win for our allies, a win for global energy security, and a blow to our adversaries. We are advancing national security at home and abroad. From day one, president trump has focused on delivering prosperity at home and peace abroad.
▶ 0:40:13Occasionally, power must be projected to create long term peace. American national security is anchored by our nuclear deterrent. Doe's national nuclear security administration is honored by this mission to ensure a safe, secure and effective deterrent against new and evolving threats.
▶ 0:40:34Today, nnsa is delivering more new weapons, seven warhead modernization programs and plutonium pits than than ever since the cold war. We are driving a nuclear power renaissance. Our efforts span next generation reactor pilot programs, reestablishing american nuclear enrichment capacity, domestic nuclear fuel fabrication, reprocessing, and a pathway to spent fuel permanent storage.
▶ 0:41:03I am proud to share that we will have multiple advanced reactor prototypes critical by america's 250th birthday this july 4th. We are driving hard to meet president trump's goal of quadrupling quadrupling nuclear capacity to 400gw by 2050. This ensures nuclear energy will play a central role in powering america's reindustrialisation and leadership in ai.
▶ 0:41:29Our budget request reaffirms our commitment to cleaning up nuclear waste and communities that carried the weight of america's earliest nuclear programs. We are bringing professional management and innovation to enhance cleanup efforts while seeking to redevelop cleaned up sites like portsmouth, paducah, hanford and others, we launched the genesis mission to bring ai's immense promise to scientific and technological innovation in our nation's history.
▶ 0:41:58There have been two great scientific mobilizations the world war two, manhattan project and the apollo space program. The genesis mission is the third genesis mission is focused on the most difficult scientific challenges of our time quantum computing, fusion energy, advanced materials development, and human health.
▶ 0:42:19We are partnering where industry alone cannot go, tackling long term challenges that require national commitment, bringing together our national laboratories, universities and private industry to accelerate scientific discovery. We are winning the ai race and lowering energy costs by leveraging department owned land and assets. We are enabling rapid deployment of large scale compute capacity through public private partnerships.
▶ 0:42:48We are working closely with industry and communities to ensure these projects adhere to the president's important ratepayer protection pledge to rapidly expand our nation's electricity grid and end the biden administration's ruinous rise in electricity prices. We are securing critical minerals. We have strategically reorganized the department, consolidating five offices into a single office of critical minerals and energy innovation.
▶ 0:43:16This creates one hub across doe, the national labs and external partners to manage the full supply chain, from mining and processing to magnets and batteries. >> and pardon me, Mr. secretary, if you could just wrap up, I appreciate it. Thank you. >> yeah. Finally, we're preparing for the future. America's open for business. And again, trillions of dollars are being invested in american infrastructure for manufacturing and ai.
▶ 0:43:42As secretary of energy, I'm honored to lead this effort for president trump and to work with this committee to strengthen america's energy future. >> thank you. Thank you very much for your testimony. And we now move into the question and answer portion of the hearing. I will begin the questioning with recognizing myself for five minutes. Let me begin with our energy security and energy affordability.
▶ 0:44:05Today, the united states is not as vulnerable to major oil disruptions as europe or asia, or as it was up into the early 2000. And this is because the us oil and natural gas production. Wouldn't you agree with that, Mr. secretary? Thank you. Oh, and if your mic please, uh, clearly impacts on global prices from the iran conflict have impacts at home.
▶ 0:44:31Prices for oil, gas and gas products have increased. What is doe doing to mitigate impacts and how do you see this playing out in the coming months? >> yes. Uh, well, we've done a number of actions in, in the short term, which is first to coordinate globally the release of 400 million barrels of oil from strategic reserve in over 30 nations. We did this because we have an interruption of flows through the straits of hormuz.
▶ 0:45:01That's what the strategic petroleum reserves are for. The biden administration unfortunately depleted our reserves to almost half empty for economic reasons. There were no disruptions in flows in 2022, yet they sold massive amounts of oil out of our reserves. We are not selling oil. We are trading barrels today when they're needed in exchange for 1.2 barrels.
▶ 0:45:26Uh, later next year, we will end with a strategic petroleum reserve fuller than it was when this conflict started. I'm very proud of the president's effort to put to an end a 47 year conflict with the largest state sponsor of terrorism, on the edge of developing nuclear weapons. We have changed regulations for gasoline blending this summer so we can increase the the production of gasoline in our country.
▶ 0:45:52We have done all sorts of work with our refining industry and our natural gas producers industry to accelerate production to the extent we can. While I don't like the escalation of prices we have seen today, gasoline prices are $1 a gallon cheaper than they were four years ago in the midst of a biden administration that was doing nothing to increase global security or assure the long term safety of energy flows, this conflict with iran bringing it to an end to an end,
▶ 0:46:23Is removing the largest global threat to future energy supplies. Can we have a nuclear armed iran with a massive missile arsenal? No. We cannot. Proud of the president to not kick this can down the road, to take long term energy security seriously, to take peace and prosperity in the middle east for the united states as the as the front of the agenda. >> well, thank you. California is experiencing the highest gas prices in the continental united states, where it has limited its oil production.
▶ 0:46:52Limited pipelines relies on 30% of its oil from the straits of hormuz. It also has closed many refineries over the last several years. What does this mean for consumers in california and across the west coast? >> uh. It's ruinous. What? California. I lived in california for many years, absolutely ruinous what they've done to create an enfeebled energy island in the united states as great a state, largest state, and the largest collection, largest amount of our military resources are in the state of california.
▶ 0:47:22Yeah, it's over 50% imported oil, even though the united states is a net exporter of oil, over 50% of the price of gasoline in california is $2 higher than the national average is because of state policies. They have chosen to make energy expensive for their people. The net result of that is this state of amazing opportunity. Amazing prosperity historically today has the highest adjusted poverty rate in the nation.
▶ 0:47:49If the united states had these policies, um, we would be completely deindustrialized and on our knees. >> thank you. Uh, let me turn to the prioritization. I got one minute to go here of doe financial assistance. Last year, the department conducted a portfolio review process. We explained the status of this process and how you see improving energy reliability and affordability and only got 50s. >> yes.
▶ 0:48:15Look, as I explained in my testimony last year, it was heartbreaking to see that roughly $100 billion rushed out the door after the biden administration lost the election. We had to review 2240 projects, a number of them with no business plan, nothing serious in them, but promises of grants of money. We assembled a team to do it.
▶ 0:48:39Unfortunately, the leaders of those teams, my senate confirmed positions, the leaders of the departments across the energy, the democrats in the senate for the first time in american history, filibustered every single one. I did not get the leadership of the departments until late october last year. Of course, I had to engage them in that process. But we did a rigorous process to see what what projects are aligned with the mission to increase the supply of affordable, reliable energy to the american people? >> well, thank you very much.
▶ 0:49:09And keeping with my the five minute rule, my time is expired and I recognize the gentlelady from florida, the ranking member of the subcommittee, for five minutes for questions. >> thank you, Mr. chairman. Mr. secretary, one of the reasons that hard working americans are grappling with higher energy bills right now is what you did when you took office at the department of energy in canceling so many clean energy projects and, and grid reliability projects.
▶ 0:49:37When you took office, you killed over 350 new energy projects and threatened over 300 more with termination. You were sued because of this and you lost in court because of it. Um. This is this. I don't think it's gotten enough attention that many of the grants you canceled were done.
▶ 0:50:02So just because they were in states led by democrats, is that fair in the united united states of america for you just simply to, to make a political decision to kill clean energy projects, increase electric bills simply for political purposes? >> uh, so the statement is false. All of the 2240 decisions we made did not involve politics at all. >> secretary.
▶ 0:50:32There, let me show you. I'm sure you've seen this. This is the district court stipulation signed by your representatives of the department of energy in federal district court that stipulates a the primary a primary reason for the selection of which doe grant termination decisions were included in the october 2025 notice tranche was whether the grantee was located in a blue state.
▶ 0:51:01This is signed by your attorneys and it's. It's. Of course it is true. >> read your words more carefully. Were included in the announcement, not in the decisions on the projects. If you want to make accusations. >> are you going. >> to be accurate? >> are you going. Well, talk about accuracy. You just said that a gas prices, uh, during the biden administration were higher than they are now. They are not.
▶ 0:51:29Boy, tell my folks back in florida that are pulling up to the gas pump at 429 today. Average was over. >> average was over $5 during the biden. Administration and the peak of the arbitrary. >> you all have inflicted such pain and damage and you can try to bob and weave on all this.
▶ 0:51:48But when a federal district court calls you out for your illegal cancellation of energy grants, hopefully you're going back to the drawing board to say, we're now going to right the ship. Uh ah, for the for the seven projects that, uh, prevailed. Are you have you released the funds to those energy projects? >> of course. We're, we're appealing the decision. They're appealing the we cannot appeal it yet because we don't have a final decision on it. But look. >> so then what about the other.
▶ 0:52:20>> do you want an answer or do you just want to speak. >> well, you said you're appealing the decision. So that means that as of right now you're not. What about the other hundreds of grants to stabilize the grid, to help lower costs, to bring on new clean energy, cheaper energy technologies? Do you intend now, since the courts have said you acted illegally and arbitrarily to actually restore those grants that were appropriated by the congress? >> of course, we follow the law, always will and always have.
▶ 0:52:49But what you call clean energy, it's exactly the subsidies on wind, solar and batteries that drove that drove the 30% rise in electricity prices during the biden administration, and that drove the rise in electricity prices last year, because the only things that could be permitted were energy sources that only work some of the time, and you don't know when they work. There's a surefire way to raise electricity prices. Think about it.
▶ 0:53:13>> you're going to hear from other colleagues today about canceled projects that that states and communities were relying on to help lower energy bills. And now you have said, no, we think it's more expensive to double down on costly polluting plants. You know, the unabated burning of oil and gas and coal also has an outsized cost and impact.
▶ 0:53:39You can't turn a blind eye to the rising cost of of the heating climate, and you continue to kind of bury your head in the sand on that, and you go back to all of these businesses that had fully permitted and even begun constructed projects. How does how does a private sector ever trust you again when you when you arbitrarily and illegally cancel these projects, how do you rebuild that trust?
▶ 0:54:08>> they weren't arbitrary and the legality are being disputed. You mentioned the rising costs of a warming climate over the last 35 years. Insured losses as a percent of global. >> auto insurance. Declined to 20%. Insurance in florida. >> declined, not risen. >> yeah. >> the time has expired. >> I yield back my time. >> and the chair now recognizes the gentleman from kentucky, the chairman of the full committee. Five minutes for questions. >> so, Mr. secretary, did you want to respond to more of what was just asked?
▶ 0:54:36I'll give you some time to answer some questions that you were just asked. >> I think I made the most of the main points, she said. I hide my hand, head, head in the sand. No. No one has ever accused me of that before. I'm very outward and very honest about what we're doing and, and to to lead with this rising cost from climate, from a warming climate, the climate has warmed. We have put 50% more plant food in the atmosphere. That is true, but damages from extreme weather have been on a downward trend.
▶ 0:55:05As long as we have data as a percent of the economy. So looked at realistically and honestly, we do, there's not been an increase in in hurricanes, floods, droughts, tornadoes, despite endless claims of it. And the losses as a percent of our economy have been a downward trend because we build stronger, more resilient things these days. >> and you also start talking about by by subsidizing non-dispatchable power, that only gave watt 2% less than garbage in burning wood in new england.
▶ 0:55:34And people say, well, you just picked the worst day of the year when you used that comment. And I said, well, we need it the worst day of the year. That's when you need it the most. That's when peak demand said churchill downs has 100,000 seats for one day a year, but they need them that one day a year. And so so it's important. So how did the, the, uh, so the subsidies of wind and solar that some claim will make power cheaper because you're subsidizing it. So it's somebody paying for it, but it's maybe cheaper for the user actually makes it more expensive because you can't permit it or they don't build other dispatchable power.
▶ 0:56:03How do the subsidies, wind and solar make energy go up? >> yeah. Great question. I always say a subsidy is inefficient. If the government collects a dollar of taxpayer money and makes something only $0.50 cheaper, it's a waste of $0.50. The subsidies for wind and solar. The government collects a dollar of taxes and makes electricity more expensive, so it costs another dollar. The losses are amplified by these expenditures.
▶ 0:56:29And the reason is, and most of the time right, right now we have hundreds of gigawatts of excess electricity capacity generation on our grid. The only time delivery matters and sets the capacity for grid is at peak demand time. How much we can deliver an electricity grid is what we can deliver at peak demand, wind and solar. And you saw it in fern go on vacation when you need them the most.
▶ 0:56:52So if the wind picks up right now, when it starts blowing, the federal government sends four cent subsidy per kilowatt hour to that wind farm developer. We take a natural gas plant that's running and turn its power down, because it's got to accommodate the wind power. We save $0.02 in the natural gas that's not burnt. We're already down $0.02. Plus the utility that contracted with that wind company pays them whatever their contracted rate was for it.
▶ 0:57:18If we've added a whole bunch of new capacity, but we haven't expanded the capacity of the grid, we just have to operate two grids now and build all sorts of new transmission infrastructure. The states that have passed renewable portfolio standards and pushed what representative castro calls clean energy, they have 50% higher average electricity prices that the states that didn't force that. So when we talk about clean energy or cheap energy, you've got to look at the system costs. We got to look at numbers. And we and we should look at facts.
▶ 0:57:47I know everybody wants to scream and make unbased accusations, but let's just talk about the facts today. >> so I'm going to go over the next minute for today. I had a lot of questions. I'll send them for the record. But talk about we know there's a crisis, there's high prices, energy. People are hurting. We can't have a nuclear iran. I understand that a sci fi action and the reason for it. But at the department of energy, what is kind of going on in the next minute and a half that you're trying to tell the american people? We're trying to relieve energy prices?
▶ 0:58:16>> oh, all sorts of things on the electricity grid. We're we're doing everything we can to keep dispatchable capacity that we have today on the grid. >> I mean, for gas prices today for what? What are you guys doing knowing that for this emergency, trying to do everything you can to make gas prices today cheaper? Oh, I know we're going to get beyond this, but what are you trying to do today? >> we meet every day with what are the knobs we can turn there. I mentioned the strategic petroleum reserve.
▶ 0:58:42I mentioned working with epa to change the blending requirements so we can produce more gasoline this summer. Um, we're looking at how we can, uh, expedite american, more american oil production from wells. We already have, we mentioned the sanctions on the barrels of oil there, floating barrels of oil in the pacific ocean that are on their way to china, iran, and russian oil going into china, where it'll be parked in a strategic petroleum reserve.
▶ 0:59:11China banned the exports of gasoline and diesel to the rest of the world. That oil doesn't help anyone. It's going to be sold anyway. So yes, we did talk to the our the whole administration and say, let those barrels of oil flow into india. They'll go into indian refineries, they'll produce more gasoline and diesel and jet fuel, and they'll export those products to the world. We've done everything pragmatic and will continue to do more things to keep that price of gasoline down.
▶ 0:59:37I'm disappointed it's up from the below $3 a gallon we were at. I'm sorry. Lower than. >> it ever touched. I'm sorry the time has. >> expired back. >> you bet. >> and the gentleman yields back. The chair now recognizes the ranking member from for the full committee. The gentleman from new jersey. Five minutes for questions. >> thank you, Mr. chairman. Mr. secretary, you know, sometimes I almost feel sorry for you to be honest. Uh, I mean, you keep saying how the president has to, so has to show strength.
▶ 1:00:07This is the weakest president. He looks like a weakling. He is. He talks about victory. Meanwhile, iran, china, russia, they just eat our lunch. That's the bottom line. Yes. I have the chinese intervene to get a cease fire. He wants to he he wants to lift the sanctions on iran. Lifts the sanctions on russia. How is it that that strength. That's weakness.
▶ 1:00:31But more important than anything is my constituents don't believe in this war. And the president keeps saying that the reason that prices for gas are going up and probably going to go up even further, is because we have to fight this war. We don't have to fight this war. This war must end, and no one here is willing to sacrifice higher prices for everything for an unjust, illegal war.
▶ 1:00:57And I know you can't say that the war is unjust or illegal because you work for the president. I understand that. That's why I almost feel sorry for you having to be here today to justify what's going on here. But let me just ask you this. I mentioned that you tweeted, and this is a tweet and I quote, the us navy successfully escorted an oil tanker through the strait of hormuz to ensure oil remains flowing to global markets.
▶ 1:01:24And as a result of that tweet, the stock market and oil markets reacted sharply until the rest of the trump administration had to come out and contradict your statement, which was then deleted. My concern is that the trump administration is trying to influence the stock market, and that a lot of what they do every day is to try to influence the stock market when it comes to energy.
▶ 1:01:48And I'm hopeful that that's not for personal gain of the president or others in his administration, although I think there's a lot of evidence that that's, in fact what's going on, because they don't want the market, they want to manipulate the market. So let me ask you, secretary wright, did you post this tweet yourself that I just mentioned? >> I did not post that tweet myself, but I do take full responsibility for it. I gave it, I gave. >> a speech I appreciate again, I feel sorry for you. >> it was. >> a mistake.
▶ 1:02:15Crude prices tumbled below $80 a barrel after your tweet before jumping again after it was deleted. If the post was an error by staff, have you done an internal investigation to ensure that the doe staff involved were not trading on this activity? In other words, you didn't do it. Somebody else did that. Then they make a buck because of it. Have you investigated that?
▶ 1:02:40>> I'm not aware of investigation of that, but of course, I did speak to the people at my communications department that I spoke in colorado. They misquoted something. I said it was an honest mistake, but it was my fault to not catch it. All right. >> well, I would. >> ask. >> a little investigation because I'm concerned that they're trying to manipulate the market so they can make a buck. Frankly, that's what I'm concerned about. Now, let me ask you this. In your opening statement, you said you were very proud of the progress made on nuclear energy by this administration.
▶ 1:03:10Frankly, I don't see it at all. I don't see why you think there's any progress. But moving to nuclear energy, doe has threatened the independence of our country's nuclear safety regulator, the nuclear regulatory commission, according to press reports, which I'll ask unanimous consent to insert into the record. Mr. chairman, if I can. >> without objection, so ordered. >> at a meeting at idaho national lab last year, a doe staffer named seth cohen said, and I quote, the nrc is going to do whatever we tell the nrc to do.
▶ 1:03:39And you later promoted Mr. cohen to be chief counsel for nuclear policy. And he spent much of the last year trying to actively undermine the nrc safety rules. So let me ask you, do you acknowledge the importance of the nrc's independence? Do you think it's important that they be independent? >> oh, it's critically important that the nrc is dependent. It's critically important that we work closely together. Then why is. >> Mr. cohen still on the job? >> Mr. cohen is a passionate guy working to advance nuclear power.
▶ 1:04:07He he he gets he gets a little over his skis, and he made a comment. He he he didn't actually mean. But he did say it. He shouldn't have said it. So he understands that fully. >> he even though he made that statement, he feels that the nrc should be independent as well. >> absolutely. >> oh, well, I don't believe that for one minute. Look, I want to be clear.
▶ 1:04:27Your department has a responsibility to uphold public confidence in nuclear energy, but critical to upholding that public confidence is maintaining an independent nuclear safety regulator, separate from the arm of the government responsible for promoting nuclear energy. And frankly, I don't think we're ever going to see progress on nuclear power in this administration unless that independence is secure, and I don't think it is today. But thank you, Mr. chairman, I yield back. >> thank you very much. The gentleman yields back the balance of the time.
▶ 1:04:56The chair now recognizes the gentleman from alabama sixth district for five minutes for questions. >> thank you, Mr. chairman. I just want to point out that gasoline prices under biden hit five over $5 a gallon. It's the highest in history. Um, when he took office, it was 239 a gallon. That's a 200% increase. Um, uh, Mr. secretary, uh, I just wanted to point that out. I want to ask you something.
▶ 1:05:20Um, you're dealing with people here who, uh, claim to have the best interest of the country at heart, yet they're, uh, opposing policies that could dramatically improve the lives of people. We have economic injustice all over the country because of energy. Injustice. It's been imposed on them.
▶ 1:05:38I understand that having grown up pretty much dirt poor myself, um, these are the same people who voted against, um, uh, no taxes on social security for 51.4 million americans. Uh, they voted against no taxes on tips.
▶ 1:05:57That's added over $2,000 to the income of people, that they can go out now and buy their kids a new pair of shoes or pay for their school supplies, maybe take a little vacation, maybe even have some money for tuition for bettering their lives. The same people that voted against the rural health transformation fund that provided $50 billion to transform rural healthcare, particularly for, uh, expectant mothers and what have become maternity care deserts. So I just want you to know who you're dealing with.
▶ 1:06:25I want to ask you about, um, saying on the nuclear thing, uh, china plans to build 100 nuclear reactors probably by 2035, but certainly over the next 20 years. Can china compete in artificial intelligence only using renewable power? >> oh, absolutely. Absolutely not. >> can we? >> absolutely not.
▶ 1:06:50>> so when it comes to and you and I have had this conversation before, and you know how focused I am on small modular reactors, china plans to open, uh, for operation the first small modular reactor sometime may already be open. Um, the. >> already operating. Uh, are we in a position, uh, the way we're currently structured with, with the national nuclear regulatory commission to compete with china.
▶ 1:07:21>> I think we are rapidly moving in that direction. I'm very, very proud of the commissioners we have on the nrc and the work they are doing. Um, and we will have multiple reactors critical in the next few months. So I struggle with representative pauline's comment that we're not making any progress with nuclear. I think that's absolutely not the case. Um.
▶ 1:07:42>> I haven't haven't we had these discussions where we're very focused on, on our ability to compete in artificial intelligence to increase the base load power available for this without raising rates on, uh, residential consumers and business consumers by using small modular reactors. >> absolutely. Representative palmer, they're going to be a key part of what's going to power ai and allow us to reshore manufacturing the ratepayer protection pledge we've done with all the hyperscalers.
▶ 1:08:11President trump's leadership will assure that that electricity prices will not go up as we build data centers and we build new power generation, nuclear is going to be huge part of our electricity. >> electric permitting reform, absolutely essential to being able to build these facilities along with critical infrastructure that we need to remove our reliance on china for refined critical minerals and rare earth elements. >> absolutely, yes it is. >> are we making progress there. >> in permanent reform? >> right.
▶ 1:08:41>> no. Well, there's dialogs, but no, we haven't we haven't moved there yet. The at the agencies. We've done nepa reform. The supreme court came down and gave us a unanimous decision in sort of a parallel issue. But yes, we need congress to move real permitting reform so it's easier to build things. Otherwise china will keep leaving us in the dust in electricity production. >> and when we do permitting reform, when we we expedite permitting, does that in any way undermine any of our environmental laws? >> absolutely not.
▶ 1:09:10>> so what what confuses me a lot of times about my colleagues across the aisle is they're opposed to permitting reform that that would allow if we do expedite permitting reform, it allows us to build the critical facilities that are literally critical to our national security and our economic security, even though expediting, permitting will no in no way undermine the environmental quality that we enjoy now or have many, many opportunities to improve upon, particularly if we go with small modular reactors.
▶ 1:09:38Yet they're in opposition to the very reforms that are going to improve our national security position, our economic security position, and make life better for americans all over the country. Would you agree with that? >> I agree with all you said. >> thank you, Mr. chairman, I yield back. >> thank you very much. The gentleman yields back the balance of his time, and the chair now recognizes the gentleman from california's 50th district for five minutes for questions. >> thank you, Mr. chairman. And Mr. secretary, I want to thank you for coming here.
▶ 1:10:04And if it's okay with you, I'd like to take a break from the presidential campaign to ask you about some things I think we can work together on. Um, first is fusion. Uh, I did read in your testimony some very positive comments about fusion. And I want to thank you for coming to recently to the d3d facility in san diego. As you know, um, that facility is a world leading facility in the development of nuclear fusion.
▶ 1:10:27And fusion has made tremendous progress over the last several years, in part due to the work at d3d the proposed budget request for fy 27 reduces funding to its lowest levels in 13 years. And at this level, I just wanted to say it looks like ad3d would need to lay off 30% of its workforce, cease infrastructure development and go into a warm shutdown. I just ask you, can we work together to see what we can do to keep that facility open? >> yes, absolutely.
▶ 1:10:55I will work with you to keep that facility open. I'd like to see our efforts in fusion grow. I believe our numbers are flat year over year, but do I have an interest in actually growing that funding? Absolutely. >> I want to call your. >> I'd love to. >> work with you. I know this is a dynamic document, but I want to call your attention to that and hope we can work on that. Uh, the other, um, thank you for Mr. palmer, my friend, setting up permit reform. I think that's something I personally am interested in doing.
▶ 1:11:22Um, and we've made a lot of progress in this congress and I'll just tell you, I think where, where the state of play is, uh, congress passed a nepa reform, the speed act from, from the natural resources committee. I think there's a lot of good things in that. Um, we, we are interested in transmission. I think we've talked about this before. There's so much congestion. I mean, even if you built a gas plant in pjm today, you can't hook it up.
▶ 1:11:45Microsoft wants to reopen three mile island, kind of a heroic thing around data center. They can't apparently get hooked up until 2031. We have to build more transmission. And I think, you know, there are discussions going on, but we would really love the administration's active support in getting a plan to build out transmission as part of this deal. I think I would just call to your attention. There is concern around certainty.
▶ 1:12:09Um, the notion that you I know you're not big fans of when we have disagreements about energy policy, but pulling a plug on a project like revolution wind that's already permitted scares off investors and scares off people. I think we got to get away from that. We have some. We just introduced a bill on certainty yesterday. I know the natural gas folks want relief from section 401. Just for your information, that that that's a hard pull for democrats. But it can't be done unless we write down the rules on methane.
▶ 1:12:37Uh, I think the industry is tired of being jerked back and forth on methane because of consumer demand, customer demand from the eu, from, from, um, from china and from, from south korea for clean gas. The industry has developed the technology it needs to be able to abide by, by, uh, methane restrictions. We need to write those down. Those are the kinds of things I would invite your attention to. And you think you would be able to work with us to get a congressional deal this year?
▶ 1:13:08>> I, I do believe so. I think you raised a number of the key issues, and I do believe that there is room for a bipartisan agreement that addresses all of the issues you raised. And I would like to see that happen, and I'd like to work with you on it. >> thank you. Um, I would say that, um, you've indicated before there would be value to permitting multi-state multi-regional transmission lines similar to pipelines. So it's a one stop shop at ferc. The, the, the process for getting through, uh, lines is much harder.
▶ 1:13:37Um, can we talk about a parity problem? So faster, more efficient transmission permitting, paired with reforms to the environmental laws would reduce costs, improve grid reliability is a parity between permitting pipelines and permitting transmission lines, something that you'd consider? >> yes. I think it's very worthy of discussion. >> okay. We really need your help to help, uh, kick this committee into gear on the house side.
▶ 1:14:04You know, frankly, we have a lot of republicans who've been really willing to step out, um, without knowing what the trump administration thinks and work in a constructive way. I think senators are more intimidated to do that. Um, you know, if you and president trump can indicate, yeah, you want permit reform and transmission planning has got to be part of it, I think we could come to a deal. >> that's great to hear. Okay, I look forward to those dialogs moving forward in the next few weeks, I hope. >> thank you very much. I appreciate it and I yield back. >> thank you, representative peterson.
▶ 1:14:35>> thank you very much. Gentleman yields back the balance of his time. The chair now recognizes the gentleman from texas is 11th district for five minutes for questions. Thank you. >> Mr. chairman and secretary. It's such a breath of fresh air to have an expert, somebody who knows the business of energy. Uh, and that represents all 50 states, uh, on affordable, reliable energy. And it's also nice to follow a Mr. peters from california. And I know that his heart is in the right place, uh, on, on wanting to work on permitting reform, which is a huge priority for us.
▶ 1:15:02Um, and, uh, I'll go to, uh, I'll start kind of small in our district. Thank you for, for the work on nuclear. Um, and you have made tremendous strides and gains as opposed to the previous administration, uh, you are working on this. Um, and as you know, the, the project in texas with, uh, abilene christian university, natura energy, I know that doe has been working very closely with that. And there's a couple of benefits.
▶ 1:15:30Number one, it's, it's the added, um, dispatchable power, uh, that we, when scaled are going to receive from that. But, but number two, it's also a water issue as well that the heat from this reactor and the technology from this reactor can help on desalinization of water, especially in an area like west texas where water is so critical. Um, and I just wanted to get your thoughts on that current project before going into some other ideas.
▶ 1:16:01>> yeah, I think, I think that reactor at abilene christian is a perfect example about why we are going to have a nuclear renaissance this time. A, I would say at the federal government, we have commitment that we're going to do it. We're going to be more sensible on regulation. Nrc is critical in that we have great leadership at the nrc. I think they're doing great things. We are changing, uh, permit approvals in the doe. We have used money a appropriated by congress. Thank you all everyone here for that.
▶ 1:16:29To spur new uranium enrichment, new fuel fabrication this country. So we're doing everything we can from the government end. But we have great private efforts at universities and at businesses that are trying different in novel technologies, putting their own capital at risk, their time, their emotional energy into it. If you combine capital, emotional energy innovation with a reasonable regulatory environment, you get progress. And I am very excited about it.
▶ 1:16:59We're not betting on one horse or one thing or reviving something that was old. There's so much exciting innovation going on. One right there in your district. Uh, I, I have never, I went to college to work on nuclear energy. I've never been more optimistic about the future of nuclear than I am today. >> well, thank you for that commitment. We need we do need the idaho national lab to deliver on their side of it to to really finish out that project. And I think it's going to be a tremendously helpful for our country.
▶ 1:17:27Uh, let me switch to the crisis that we have. And you mentioned, uh, california earlier, and I would put the northeastern united states in the same category, but I mean, california is going to end up importing from other countries because they won't allow via pipeline or via the refineries that are actually shutting down. There are multiple refineries that are shutting down in california right now, because the state has made it so tremendously difficult to work there to produce and provide for that population.
▶ 1:17:56Um, so I want to tie that, uh, with the efforts that department of energy is trying to do everything you possibly can and maybe give us a sense of some of the solutions legislatively that we can be thinking about so that there isn't a disaster in those coastal areas. >> it's serious concern about national security in california. Again, massive military assets there. We supply our forward bases in the pacific out of the west coast of the united states.
▶ 1:18:24But yet here we have a state known as california, have the most expensive electricity prices. They produce meaningfully less electricity today than they did ten years ago, as does new york, as does massachusetts. All the green energy states have expensive energy and declining output. California, oh, 100 years ago, a little more than 100 years ago, produced 40% of america's oil. Today, it produces 2%.
▶ 1:18:482% of american oil comes out of california. Yeah. And they consume closer to 10%. So they're just wildly dependent, not imports from other states like texas or new mexico. They're importing oil from iraq, you know, from ecuador, from. >> there's going to be a day where they import more oil from iraq than they get from the united states. And if that's not already today.
▶ 1:19:14>> they import over 60% of their oil from out of the united states, over 60% of the oil consumed in california is imported from across the ocean. A giant tanker ships, and they import gasoline and diesel and jet fuel, refined products. They can't even make energy out of it. They had 40 refineries. Now they only have seven of any size. They're not going to be able to refine enough of their own products.
▶ 1:19:39So pacific nations or some other state like texas, is going to have to make that quirky california gasoline blend designed to be expensive. I think that was the goal. Make it expensive. >> sorry. Like california for the rest of the united states, I yield back. >> the gentleman's time has expired and yields back. The chair now recognizes the gentleman from new jersey's eighth district for five minutes for questions. >> thank you. Chairman.
▶ 1:20:02Secretary wright, you state in your written testimony that the department of energy continues to be focused on turning our nation's abundance of resources into affordable, reliable and secure energy for all americans. What grade would you give yourself delivering on that promise? >> ah, I would have to grade the whole team, but I think the team has made massive progress in the last 15 months. >> grade. What grade would you give yourself for the administration?
▶ 1:20:29>> uh, I would give the I can't give. >> okay. I'll answer the question for you. Um, gas is up a dollar per gallon since january, and diesel prices are now over $5 per gallon. Electricity prices have risen as much as 13% nationwide since president trump took office, and inflation tripled last month on the record gas spike due to the president's war with iran. So I would give you an f, as I believe most americans who are getting crushed by rising prices would. Let's talk about how we got here. Mr. right.
▶ 1:20:58Following the trump administration's congressional republicans illegal war in iran, the trump administration granted sanction waivers to both russia and iran that allowed both countries to temporarily sell oil. Is that correct? They were sanction waivers for both countries. Is that correct? Yes or no? >> there were sanction waivers to bring that oil into asian refineries, as opposed to being stored in chinese space. >> the answer is yes. And these waivers come while we're at war with iran. And russia has continued its war with ukraine. Is that correct?
▶ 1:21:27>> is your preference in nuclear arms? >> the answer is yes. Even though we're at war with iran and russia, I'm reclaiming my time. Even though we're at war with iran and russia is still at war with our ally, ukraine. We've allowed both countries to benefit financially from trump's war with iran. Before trump's war with iran. Was the strait of hormuz open just yes or no? >> always a threat of being closed. >> but it was open, and now it's not open. And iran has operational control of it. And about 20% of global oil typically goes through the strait, which is about 130 ships per day.
▶ 1:21:57So iran has operational control of the strait, and now a fraction of the number of ships are passing through. Prior to trump's war with iran, the average price of a gallon of gas was between $2.87 and $2.94. Is that correct? >> yes. Much lower than ever during the. >> the average price of gas today is $4.13. Is that correct? >> lower than the peak of the biden administration. >> so that so that means that the cost of gas is up $1.20 since the start of trump's war with iran, which equates to americans collectively paying over $20.5 billion at the pump.
▶ 1:22:30So let's do a quick recap. For the past month, russia and iran have reaped the financial benefits of president trump's waivers on oil sanctions. The strait of hormuz went from open to closed, and iran maintains operational control over the strait. Gas prices are up $1.20 since the start of trump's war. So, Mr. wright, from solely an energy perspective, would you agree that this war is an absolute failure that is being borne on the backs of hard working americans? >> adamantly disagree.
▶ 1:22:57Iran has been a threat to global energy supplies for 47 years, and we're finally going to end that threat. Yes, of course, that has not been. >> communicated to the american people. The goalpost keeps moving, and meanwhile, our constituents are paying at the pump every single day. Mr. wright, as the secretary of energy, one of your roles is to ensure the security of nuclear materials worldwide. Is that correct? >> that is correct. >> what is the status of iran's enriched uranium?
▶ 1:23:27>> uh, that, uh, we don't know exactly what the status of iran's enriched uranium is today. And what I do know, I won't share. >> iran is believed to have about 960 pounds of uranium enriched at 60%, which is enough to produce about ten nuclear warheads. Is that your assessment? >> yes, it is. And apparently you want them to finish the job.
▶ 1:23:50>> well, that's interesting because last summer, president trump initiated strikes on nuclear facilities in iran, claiming that their program was, quote, totally obliterated and, quote, set back the program for years. So if you agree that there's 960 pounds of uranium enrich and that and that iran's nuclear program was totally obliterated, how can those two things be true? >> because they produce that enriched uranium before those strikes and their nuclear program. Okay. >> let's talk about venezuela.
▶ 1:24:15The trump administration has used venezuela's natural resources to exert control in the western hemisphere, including by cutting off the supply of oil to cuba. And now cuba has plunged into an energy crisis. The trump administration has threatened tariffs on countries like mexico, have historically provided fuel to cuba. Yet the president allowed a russian oil tanker to reach cuba. Is that correct? That's correct. So the president allows russia to give oil to cuba while threatening everyone else who wants to help. And the president allowed russia to profit off a temporary sanctions waiver, even though they're still at war with ukraine. Mr. right.
▶ 1:24:44In your assessment, why is this administration so weak on russia? >> I don't believe this administration is weak on russia. This administration has done the most efforts to get as close as possible to end the ruinous war. I disagree. >> and at the end of the day, you can't tell the american people how they feel. And they are struggling right now because of this reckless war and this disastrous administration, I yield back. >> the gentleman's time has expired, yields back. The chair now recognizes the gentleman from georgia's 12th district for five minutes for questions.
▶ 1:25:16Uh, hey. >> Mr. secretary, I want to thank chair linda for holding this important hearing with, uh, with with our energy secretary. Right. And I really appreciate your work, sir. Uh, and I thank you for being here, uh, to testify today, even under these circumstances. Uh, I want to thank you for unleashing american energy and for working on getting more reliable energy on our grid.
▶ 1:25:40You know, it's too bad that my friends on the other side of the aisle didn't get so upset about gas prices under the previous administration. Uh, I don't quite understand the hypocrisy, but anyway, we have to deal with it as part of that. Nuclear energy plays a vital role, and I'm proud to highlight that my district is home to plant vogel, the nation's largest and most advanced clean nuclear energy facility with units three and four now fully operational.
▶ 1:26:08Nuclear energy is critical for our nation's energy security, and I'm glad that the trump administration is promoting nuclear energy. I look forward to continuing to work with you on deploying our nuclear energy capabilities. The refocused office of energy dominance financing. Edf is committed to the responsibility of deploying capital to projects that meaningfully contribute to energy security and lower energy costs for americans.
▶ 1:26:36These are projects that can be built quickly and start making a real difference, generating electricity and a return on investment alike. Mr. secretary, how can the edf be utilized to expand existing nuclear plants, gas generating plants and grid components to build our capacity and usher forward the next generation reactors? >> boy, I love your enthusiasm. And yet, congratulations for the huge nuclear resources in your district.
▶ 1:27:02Uh, two of our early loans from the energy dominance finance loan are for nuclear plant restarts. Both the palisade plant in michigan and the formerly three mile island that will be rechristened the crane clean energy center. Those are edf loans from the department of energy in partnership, you know, with solid corporate partners that are leading the effort and funding with equity. We're just their debt partners coming along with them.
▶ 1:27:29Uh, edf loans will almost certainly be part of the first 5 or 10 new reactors that are built in this country. Commercial lenders will be right there along with us. And after we get that, that ball rolling again, I think the commercial capital markets will fill that role nicely. But there is an important role for us at the start. We need key equity partners and we need the right projects. But the enthusiasm is high there and I believe we'll get the nuclear ball moving again.
▶ 1:27:59>> well, we know we have got to create a whole lot of energy in this country. We're way behind, and I appreciate your work with the public private partnerships to get this done. Uh, edf recently approved the largest loan in doe history, 26.5 billion for southern company.
▶ 1:28:17Uh, that, uh, operates the utilities, uh, along with, uh, other utilities in our, uh, in my district, uh, to build a new generating units and upgrade existing infrastructure. This includes six gw nuclear power improved through up, up, up rates and license renewals. Uh, what impact will this have on my constituents in georgia's 12th district?
▶ 1:28:44>> uh, maybe the most important thing it will have is it will stop the ruinous price rises that that ran for the four years of the biden administration. And of course, last year as well, everything that came on the electricity grid, every impact on the grid last year was biden policies. It takes longer to reverse those policies, those impacts. So it will stop the rise of electricity prices in georgia and alabama.
▶ 1:29:05It will grow massively the amount of deliverable electricity in those regions, which will allow new businesses, new manufacturing data centers, whatever it is the great people of georgia want in that district. It'll enable better futures, lower prices, higher wages. >> uh, and that's why this affordable issue is, is so full of hypocrisy and hypocrisy. I mean, it, it baffles the mind. In february, the house of representatives passed my bill, the home appliance protection and, uh, and affordability act.
▶ 1:29:36This bill makes several energy, uh, several updates to energy policy and conservation act to preserve consumer choice and affordability in household appliances. Should this bill be enacted, and how will the department of energy ensure that consumer choice and affordability and the fact that this stuff needs to work like it's supposed to be protected? And I got about 20s, sir. >> no, it's it's critical we got to allow americans to purchase what americans can afford and what they want to buy.
▶ 1:30:05This sort of arrogant paternalism that you have to buy the expensive fancy one that my friends in manhattan have. Everyone has to buy it. That's what the democrats did under the previous administration, not a single loan they gave mentioned affordability or cost in the applications and in the plan. Not one. >> and I'm sorry. >> you have to reverse this ac ac problem too, sir. >> thank you. Yields back. The chair now recognizes the gentleman from california's 15th district for five minutes for questions.
▶ 1:30:36>> thank you, Mr. chair. Thank you, Mr. secretary, for being here. The war on iran has sent the price of gasoline soaring, with the national average over $4 a gallon, up nearly $1.50 $1.50 per gallon since the start of the year. Now, Mr. secretary, prior to the president's attack on iran, did the department of energy model potential increases in gas prices? Oh.
▶ 1:31:03>> the department of energy has engaged in, uh, the iran question since the administration started, the risks from iran, the risks from action against iran. So. Absolutely. >> and did president trump consult with you directly about the impact his war would have at the pump? >> uh, absolutely. >> he did. So you're saying the president knew that this would trigger a 45% spike in gas prices for working families and proceeded anyway. So thank you.
▶ 1:31:34Thank you for putting that on the record. Do you have an estimate for how long the president's war will raise gas prices? >> uh, I think in the long term it'll be meaningfully lower gas prices because we're removing the greatest threat to global energy security that's been here for decades and was rising to a new level, a nuclear armed iran with a massive weapons arsenal is an existential threat to the economies in that region, to the countries, to the united states, and certainly to global energy
▶ 1:32:04Markets. Thank you for that. This was a problem that needed to be fixed. >> thank you. Mr. secretary offers little comfort to families choosing between groceries and filling their gas tanks, but appreciate that answer. I would like to move to a topic of innovation. My district in the san francisco bay area is a global leader in commercializing breakthroughs. For nearly two decades, the advanced research projects agency for energy, or arpa-e, has been the federal government's primary engine for that same mission.
▶ 1:32:31It was designed to move at the speed of the private sector and bridge the gap between the lab and the market. You, uh, you've talked about leading on critical minerals and ai and firm power generation, but instead of using arpa-e to accelerate those goals, your budget proposes cutting its funding by 43%. This is at a time when china is spending over $1 trillion on r&d.
▶ 1:32:55So why are you proposing such significant cuts to your agency's engine, really for commercialization? >> so our request this year was flat with our request from last year. Last year you worked with us to plus up that request. And I hope we have a similar pathway this year. >> okay. I would just like to, to note that, um, we've heard about reorganizing and creating brand new offices to do the job rpa is already doing.
▶ 1:33:25Is it efficiency? I'm concerned about, uh, the use of tax dollars, uh, with regard to that. And, uh, just want to say that arpa-e is tech neutral. Its mission is to overcome and I quote, long term and high risk technological barriers. If you want to change those priorities, you change the program directors, you don't fire staff, you don't get the budget, but look forward to working with you on arpa-e going forward. And with that, I yield back. >> thank you.
▶ 1:33:54I'm a fan of arpa-e as well and look forward to working with you on it. >> gentleman yields back and the chair now recognizes the gentleman from ohio's 12th district for five minutes for questions. >> thank you, Mr. chairman. Thank you, secretary rice, for being here this morning, Mr. secretary.
▶ 1:34:17And just a last few months, the department of energy and the department of commerce announced a historic $33 billion public private partnership and the great state of ohio. Thank you. As part of this partnership, softbank energy will build out ten gigawatts of new power generation, including 9.2gw of natural gas generation, to power new data center development in ohio.
▶ 1:34:39When completed, this project will include one of the largest natural gas generating facilities in the world, while at the same time protecting ohio families and ratepayers from increased costs associated with new data centers. Can you discuss the department's role in establishing this partnership and more broadly, how are you working with the administration to win the ai race while protecting americans from increasing energy costs, as outlined in the president's ratepayer protection pledge?
▶ 1:35:10>> thank you so much for the question, representative balderson, and thank you for your great state of ohio in key part of the american industrial heartland in the past, and I believe very much will be in the future as well. So artificial intelligence and reshoring of manufacturing are going to have huge new demand for electricity.
▶ 1:35:29Those plants, those those facilities need to go places where you've got skilled workforce, a reasonable business environment and energy resources, most importantly, the ability to grow and expand energy resources. We looked at the department of energy. We have over 1 million acres at our labs and facilities we otherwise manage that have land, and we reached out to developers of data centers and said, hey, who?
▶ 1:35:53If you bring capital and compute to help our genesis mission advance ai, we want to work with you. And so we identified that facility in portsmouth, ohio, a former gaseous diffusion plant that was part of the united states weapons program. Uh, but it had been decommissioned and has been in the process mostly through of cleaning up and reclaiming that area. So just a great location, a brownfield to develop large data centers and large new power generation.
▶ 1:36:21Um, the, the main funding for the power generation part of it is coming from the trade deal president trump negotiated with japan. Japan wanted more favorable trade terms with the united states and in exchange, agreed to invest hundreds of billions of dollars into the united states in assets that are funded by the japanese government but are ultimately owned by the united states. These will be managed by a great utility that serves that local area in ohio.
▶ 1:36:49So we want to get going as quickly as we can, raise the power production in that area so we can build the data center, build other industrial facilities that will be around it, and freeze electricity prices at a minimum, and hopefully start to decline the rates in that area. That will spur all sorts of other businesses.
▶ 1:37:08We had a wonderful event there, and and the people that used to work at that facility were so excited that they and their children are going to, again, be able to work at great american industrial facilities in the heartland of our country. >> couldn't agree with you more, Mr. secretary. Thank you. In addition to the softbank project, williams companies is currently investing over 7 billion to develop a new natural gas fired plants, including the socrates project in my congressional district that I'm fortunate to represent to help power data center facilities in central ohio.
▶ 1:37:38I believe gas production in ohio, west virginia and pennsylvania are well positioned to support this new development and investment in co-located and behind the meter generation. Can you briefly discuss how the department's views, the how the department views the utica and marcellus shale as an asset in supporting your goals of american energy dominance? Yes, again. >> fantastic. The shale revolution, as you know well, just transformed our country.
▶ 1:38:06It reset oil prices and natural gas prices, massively lower oil prices in real terms were well over $200. Uh, 20 years ago in peace time. Uh, but shale revolution exploded. American production of oil and natural gas, the greatest natural gas shale producing area in the region is in your great state is in pennsylvania, west virginia, and eastern ohio. These resources are are massive.
▶ 1:38:33And how much gas can be produced is limited by how much pipeline capacity there is. Mostly to get it to the gulf coast, where it's loaded as lng and shipped abroad or pipelined around to demand centers across the country. But it's limited by pipeline capacity.
▶ 1:38:48So one of the beautiful ideas is a way to to use more of that gas without having to build a very long distance pipeline is to use it locally, build data centers, build manufacturing right there in ohio, short connection lines can take abundant gas from the utica shale in eastern ohio and build new factories, build new data centers. And and williams company, who's a pipeline developer, says, hey, we can develop a short pipeline here and build massive infrastructure in the great state of ohio.
▶ 1:39:18>> sorry to interrupt. The gentleman's time has expired. >> thank you, Mr. secretary. >> and the chair now recognizes the gentlelady from virginia's fourth district for five minutes for questions. >> thank you, chair and ranking member castro, for holding this very important hearing today.
▶ 1:39:33Uh, as the explosion in energy demand from an increasingly digital world and ai increases energy demand dramatically faster than our energy infrastructure can keep up, meeting this demand affordably, reliably, and in a way that balances the health of our communities planet, its ecosystems, while ensuring grid security remains critically important to our national prosperity and our national security.
▶ 1:39:57And frankly, I've been very disappointed by this administration's inability to advance a coherent energy strategy that sufficiently meets this moment, rather than encouraging the growth of cheap, reliable renewable energy sources, the administration doubles down on increasingly expensive and inefficient fossil fuels, eliminates programs designed to reduce energy demands and help lower energy bills.
▶ 1:40:21And on top of this, this this president's war of choice in iran has sent energy prices soaring over the past month. Americans are now paying over $4 a gallon for gas and diesel, over $5 per gallon, while 80 million americans are struggling to pay their utility bills. And many of them are forced to choose between paying for food, medicine, housing or keeping the lights on. As the price of each of those things have gone up and continue to rise. Thanks to the policies of the trump administration.
▶ 1:40:51And it's this context, Mr. secretary, that you're here to defend a budget that repeals $15.2 billion in support of a clean, reliable, renewable and affordable energy system, files almost $2 billion in funding to make costly upgrades to oil and natural gas plants, pipelines and fuel storage infrastructure to extend the life of expensive to maintain soon to be retired gas plants, and a budget that cuts the funding for offices.
▶ 1:41:19Focus on energy, innovation and novel technology to meet our energy demands. So, Mr. secretary, yes or no, do you believe that the federal government should help ensure that rural localities and small municipal grid operators can protect their infrastructure from cyber attacks? >> yes, we have made many of the changes in our policy specifically aimed at stopping the price rises of the previous policies and moving to more sensible policies.
▶ 1:41:47And yes, cyber security is major on our electricity grid, and we need to continue to to get smarter at doing that. >> and I agree with you that we need to help, particularly rural and municipal utilities, cybersecurity programs. And yet your budget zeroes out the rural and municipal utility cybersecurity program. And that just makes no sense to me. This is a vital program that this committee recently voiced unanimous support for.
▶ 1:42:14That helps small and rural municipal municipal municipalities protect themselves against an ever multiplying number of cybersecurity threats that could prove severely disruptive to those communities. Rural communities like the ones that I represent in virginia, they're under resourced, they're underfunded. And this zeroing out of this budget, uh, is, is counterproductive to helping them keep their grid safe. Um, Mr.
▶ 1:42:41Secretary, yes or no, do you agree that efforts to mitigate the impact that data centers have on regional and local grids will also help mitigate energy shortages and provide greater price stability for american families? >> yes, I agree with that. >> I agree with you. And I represent the data capital center of the globe, as well as the clean energy capital of the south.
▶ 1:43:07And yet, as secretary, you've overseen the cancellation of hundreds of previously awarded grants under the inflation reduction act and the in the infrastructure investment and jobs act. And in virginia, that has jeopardized over 233 million in grants that are focused on everything from energy efficiency to grid reliability.
▶ 1:43:29And one of those grants was to study ways that grid enhancing technology could be used to reduce the impacts of data centers on local and regional grids. And being here in the dmv area, I'm sure you have read the news how virginia is struggling with how to balance the need for data centers, the impact that they're having on prices, the impact they're having on demand and the impact they're having on our communities.
▶ 1:43:56And yet canceling this grant makes it difficult for the commonwealth of virginia to meet, meet that challenge. And so these are just two of the of the cuts in this budget that caused me great concern. Based on everything we've heard today, there's a lot in that budget that causes great concern.
▶ 1:44:15And, you know, we're going to fight to ensure that our localities have what they need to keep the grid safe, and that we meet this moment in a way that keeps energy prices affordable and reliable. I yield back. >> thank you very much. Gentlelady's time has expired and the the gentlelady from tennessee's first district is is recognized for five minutes for questions. >> thank you, Mr. chairman, and thank you, secretary, for being here today.
▶ 1:44:45And I want to thank you for the department's leadership in building domestic uranium enrichment capacity through the nnsa's defense programs in my district. Uh, and as part of that program, there's a site that's been elected to demonstrate deuce, uh, centrifuge technology, which will ultimately support the production of highly enriched uranium for the naval reactors program. It's nfs.
▶ 1:45:09Uh, and I know we spoke about this last year, but I wondered if you could share any updates on the program and how important it is to national security. >> yeah, it's, it's we don't enrich meaningful uranium in the united states for commercial use or for defense program use. That's been true for a few decades. And of course, it's just entirely unacceptable. You've been a champion of this for years.
▶ 1:45:36I've been here for a year and a half as your partner in this endeavor that we need to reestablish enrichment of uranium for commercial purposes, for military purposes in the united states with american technology and american companies. Um, I'm happy to see that doing to see that going funds that were granted by congress, I think, over three years ago sat unused through the last years of the biden administration.
▶ 1:46:03We ran a competitive process to find the best way to deploy that in multiple different technologies, multiple companies, and targeted at multiple different outputs. But those awards have been given. We're negotiating final terms. We want to see shovels in the ground in construction growing as fast as possible. >> that's a big deal. >> so it's a really big deal.
▶ 1:46:25And of course, that money goes as well to, you know, the right winners, the right companies, but they choose regions like yours that have a long history in nuclear technology and nuclear innovation because the workforce is there, the regulatory regime is there.
▶ 1:46:37Um, and the ability to stand it back, uh, tennessee was absolutely critical during world war two to the atomic, uh, to our manhattan project that brought the war to an earlier end than it otherwise would have, I think, saved easily tens of thousands, likely hundreds of thousands of lives and ushered in a relatively safer world by america being the strong, powerful leader of the world. And we must do that again in the united states.
▶ 1:47:05We must have a strong deterrent, and we must have those capacities right here in our country. And a lot of it's going to be right there in your state of tennessee. >> it is. We want that to be the next nuclear hub is east and northeast tennessee. Um, and honestly, let me go into the next question.
▶ 1:47:22Last month, uh, the trade deal with japan, with ge and hitachi, you know, when they announced plans to invest $40 billion in tennessee and alabama building this, um, smrs, basically that'll generate three gigawatts of power. How is the department going to ensure these smrs are deployed quickly and affordably? >> so we are in close contact with the folks at ge at at hitachi.
▶ 1:47:51You know, where is the state of the technology? How can we initiate helping them get long lead time parts ordered now get permitting and get that under construction as quickly as possible. But I do think that japanese trade deal brought some critical money to make stuff happen faster than it otherwise would happen. But I think we got to think of what three gigawatts does, not just for tennessee in your area, but for our country as far as reshoring manufacturing and leading in ai.
▶ 1:48:20>> because tva's partnered with google for the data centers and it won't be an increase in payer rates because of that. So, um, I've got a minute, 13 seconds, and I will tell you this, I've heard from several stakeholders that ai could be the key to addressing many of the challenges our grid system faces. And the department's budgeted over $1 billion for ai and quantum.
▶ 1:48:44So can you speak to the potential for ai to help accelerate grid and transmission capacity? And in your view, what's holding that back. >> critical for the grid, the grid? And we heard a comment on this earlier that three mile island is being turned back on. And the local utility or the local the local grid authority said, well, we'll 5 or 6 years from now, we'll be ready to connect it up.
▶ 1:49:07We cannot do that when these grid studies, because the grid is complicated, take forever to do ai is going to allow us to massively automate that process. We're just going to give it a model and send an agent there. It'll be able to do these grid studies in 1/100 of the time. And we need that. We need quick answers on how to optimize our grid and how to build new resources.
▶ 1:49:29>> worried about emps in things that, you know, they had the emp study and I talked to a company today, so I probably have some follow up questions for you about the modernization and the hardening of the electric grid with, uh, e1 and efs protection devices. It's that's, that's a worry too. Nobody talks about that. >> well, um, unfortunately, the gentlelady's time has expired and we'll have to get that. >> thanks, chairman, for reminding me. I'll yield back then. >> I thank the gentleman for yielding back.
▶ 1:49:58The chair now recognizes the gentlelady from colorado's first district for five minutes for questions. >> thank you so much, Mr. chairman. Mr. secretary, it's been a year since you were here last speaking to the committee, and I wanted to discuss a little bit about some of what the administration has done, uh, with respect to our shared home state of colorado on october 1st, 2025, doe released this statement announcing, quote,
▶ 1:50:29Energy department announces termination of 223 projects, saving over $7.5 billion. End quote, the colorado sun reported, quote, trump administration slashes $550 million in colorado clean energy grants, conveniently about 24 hours ago, before you were scheduled to testify, we received a list of grants set to be, quote, retained or modified, some of which appear
▶ 1:51:00To be in colorado. So we called the colorado energy office, and we asked them if they knew about this, and they said they hadn't heard a thing. So, um, I just want to ask you, is it true that some of those grants to colorado that were cut have now been reinstated? >> um, I think that is true. >> okay. Can you provide me?
▶ 1:51:23You probably don't know off the top of your head, can you provide me within like a week or so, a list of those projects so that I can share it with our home state? >> yeah, my team teammates are behind me. Will do that. And yet again, at a 2241 projects. Yeah, I'm not. >> I understand, but I think they'd really like to know if, if, if, if and which grants have been reinstated.
▶ 1:51:44So are you aware that one of the affected grants was to be the colorado energy office for resilient and efficient codes implementation, to adopt building codes that reduce pollution and which doe itself projects would save americans $182 billion on utility bills through 2040? That was one of the ones that was supposed to be cut. >> yeah. In colorado has been leaning in on this.
▶ 1:52:12If you could build buildings differently, you can have them consume less energy. So that probably. >> isn't right. That's not my question. Do you know if that's grant was reinstated? >> I do not know. >> can you please let me know that? Because obviously, if you're going to try to, um, have better efficiency and save money, that's a good thing. Wouldn't you agree? >> it's just a trade off. If you make houses too expensive for people to buy them, then the fact that they'd save energy if they could afford them. So it depends. So are you. It's not always a good idea.
▶ 1:52:42>> are you now regulating the cost of housing? >> I I've never regulated the cost of housing, but but I but I'm concerned about the cost of everything. The cost of all are cost of housing, the cost of vehicles. >> so we all are. And that's why we're perplexed. If you're cutting $182 billion savings from utility bills, let me ask you my next question. Doh suspended over $25 million in weatherization assistance to the state, which helped low income households reduce heating bills.
▶ 1:53:12So my question is, are those some of the grants that have been reinstated? >> I'll have to look into that. Those are things that we've looked at carefully. There were crazy things in these low income heating things you had to do the social cost of carbon. There was politics and nonsense in those things. >> well, we certainly don't want politics in nonsense. But but but however, that doesn't mean you throw the baby out with the bathwater and you just eliminate the grant.
▶ 1:53:39Because wouldn't you agree, low income households need help with their heating bills, especially when heating is going up. So much in cost. >> lifelong passion of mine is energy affordability. >> yeah, that's an easy question. You can say yes or no. >> I'm saying yes. Right. I've been frustrated by democrats constant efforts to drive up prices. I want to make it more affordable for low income people. >> okay. >> are we aligned? >> well, we're aligned in theory. Let's see what the practice looks like.
▶ 1:54:08If the funding uncertainty wasn't bad enough. Doe also, and we actually talked about this last year, it actively meddled in the state's energy regulation. The comanche plant in craig was forced to remain operational, despite plans beginning a decade ago to close at the start of this year. Are you aware that forcing that plant to stay operational for just one year is expected to cost 85 to $150 million?
▶ 1:54:37>> the cost of grid instability in blackouts in that particular region would be much larger. >> okay. Did you know that the cost comes in addition to $200 million for 140 45 megawatt solar project that now cannot come online due to the limited transmission from the coal plant. >> in the gentlelady has six seconds left. >> well, maybe he would answer it. Or is he just stalling? I'll ask you my last question.
▶ 1:55:06Did you know the ratepayers are going to have to pay the increased cost? >> keeping coal plants on in america have kept our grid stable and ultimately keep prices down. >> I can see why you don't want to have to answer that. >> and the gentlelady's time has expired. Just all members know. You probably heard the bells. We have 11 minutes left in this vote. The chair recognizes the gentleman from, um, oregon's second district for five minutes for questions. >> thank you, Mr. chair. Thank you for being here.
▶ 1:55:34Um, I've been working with your team on bonneville power administration in the northwest, and we need a new administrator, and we're, we're, um, we're extremely interested in finding someone who can assist in, in taking advantage of the enormous asset that the bpa is for the northwest. I do not know how up to speed you are on this, but, uh, I'm guessing you're up to speed because you're from that part of the world.
▶ 1:56:03But can you share with us what your thoughts are when it comes to bonneville power? >> yeah, bonneville power is a critical utility and power asset in the northwest. It's a huge power marketer. It controls huge utility infrastructure, transmission infrastructure. It is very important. We need as strong as possible a leader of that organization as we can get.
▶ 1:56:25We have some requirements from government, uh, uh, salary limitations that have made it harder to recruit people from within your existing utility executives and other areas, which is what I would like to do. Um, but, but yes, we are focused on that. We need to find someone good who has the skills, who can manage that asset for the better, for, for the best interests of the people and businesses in that area. It's very important job. I share your concern. >> yes.
▶ 1:56:54Well, so I'm happy to hear your enthused about trying to actually pay the new administrator what that job requires to attract a pool. >> would massively help us get a great a leader. >> right. And I have introduced a bill doing exactly that and giving you the authority to adjust the salary, to meet the need for that space. So good news, it was introduced just dropped two weeks ago. So we'll be pushing that bill through, I hope. >> oh thank you, thank you.
▶ 1:57:25That would be huge. >> I'm going to shift for a moment from bonneville power to biomass. Um, we have a terrific challenge in the west with with fires. And we've had the inability to, to remove fuel from the woods because for many, many reasons. But part of the problem is the sheer scale of the problem. We have 30 million acres of trees just in oregon. I think there's 35 million acres of trees in california and 32 in washington state.
▶ 1:57:53No one understands how much wood is there. It's an enormous challenge. It's also a challenge because of environmental issues and other things. But one of the newest things that's happening is the possibility of converting some of that biomass into fuel, and to the type of thing we now are getting from corn. And hooray for that. The cost is is significant, but it's being driven down as, as people get better at, uh, turning silos into into fuel.
▶ 1:58:22The reason this is so important is because we need some added value to the biomass that we're removing from the forests. And this, in other words, if we can get the biomass out of the forest, we will drive down fire suppression costs. What I would be asking is, is the department of energy working with the department of ag and to coordinate and say, look, this is we can get together on this. There are a bunch of hurdles we have to overcome.
▶ 1:58:50But I see this as a huge solution on both sides of the equation. More fuel, uh, in the form of, well, I think a lot of airlines are very, very interested in using this. What's your thought? >> so I need to look into that. I'm not aware of existing efforts right now, but I am very aware of that problem. As I've written in the past about wildfires in the west. When we stopped wildfires from the 20s, the smokey the bear campaign, we dramatically reduced fires in the west.
▶ 1:59:18It was very successful program. And then we stopped the ability to thin and control the forest otherwise. So there's more than 30% more fuel per acre in western fires today than there was 40 years ago, which make wildfires burn so much hotter and so much bigger. We have to either let fires burn or manage the forests. And today we do neither. And so using that undergrowth or some of that in turn into fuel is a very intriguing idea.
▶ 1:59:45Let me check into it with our team and and with the ag department, if there's a viable pathway to to kill two birds with one stone, that'd be intriguing. >> I think there is. So I hope there is. And I wanted to thank you for your help. In my district, we have the warm springs indian reservation, and there was a power line going over it, and you were helped us in, in, uh, preserving one of the grants that's going to help that power line be built.
▶ 2:00:12And that's going to insert into modest benefit to that, to that tribe that's in my district. So I appreciate that, and I appreciate the excellent job you're doing as secretary. With that, I yield back. >> thank you. Representative. >> thank you very much. The gentleman yields back. There's about six minutes left in this vote. And there's 12 there's six votes in the series as mentioned earlier.
▶ 2:00:35Uh, as soon as the last vote, number six is called, we'll be resuming ten minutes after that vote is called. So I, we will recess until the after this vote series. And thank you very much.
▶ 3:02:34With the comments from, um, congressman scott peters of california about energy permitting and about this potential win in what has been otherwise a historically unproductive and partizan congress. This is something that we can get done. I believe profoundly in energy sovereignty as a matter of, uh, economic and national security and of prosperity. And key to energy sovereignty is that we just got to make it easier to build stuff in this country.
▶ 3:03:02It can't take ten, 15 years with, uh, simultaneous and also sequential litigation and red tape. Um, we got close to, to the right bill. Um, I think there was good faith action on both sides of the aisle. I think that good faith action, um, continues, but, but might need a spark. And I would really encourage you to, to help be that spark, uh, and what he said about methane, about, you know, for one, I associate myself with all of it.
▶ 3:03:32Um, I want to focus on the department's loan program, the office of energy dominance financing. Uh, it's a powerful funding arm for commercializing technologies like nuclear and geothermal, both of which broadly we agree on. By the way, um, you know, for example, here in massachusetts, we should overturn the moratorium on nuclear and we should build nuclear power. Uh, massachusetts. Right now, our swing supply is oil from yemen that transits trinidad and tobago. That is not energy sovereignty. We need nuclear. By the way, we also need offshore wind.
▶ 3:04:02So, uh, you know, we had just had the coldest winter in 20 years. Our grid is now moving towards a peak winter grid as opposed to a peak summer grid. And the wind blows hardest in the winter time. Uh, thousands of megawatts that could significantly reduce utility bills for my constituents. And this administration's attacks on offshore wind have been arbitrary and capricious.
▶ 3:04:25And I know that republicans don't want those attacks to then be mirrored in the future against other politically unfavored energy sources. So we need to allow all energy sources to benefit from rule of law and certainty and stop this kind of tit for tat. That's really just bad for energy sovereignty across the board. So I really ask for your support as secretary in, um, allowing offshore wind development to proceed according to due process and according to the state's wishes.
▶ 3:04:58>> yeah. Uh, I agree that I think there is room to, to make compromises across the partizan aisle to make a build. So it's just easier to build things in america again. I agree with you. And I think now is the window to do that. >> but the the attacks upon offshore wind are proving a major source of contention and getting there. And it's not because individuals are necessarily boosters or, uh, bears on offshore wind is a source.
▶ 3:05:27It is the precedent that it sets that when people put long term capital at risk and then they see permits ripped up because one guy doesn't like how his golf course in scotland looks, it's a really bad sign. And it makes it's going to make it harder for energy investors across the board. We need rule of law, um, and we need it for utility bills in massachusetts. And we need it frankly, for, for energy abundance across the country. Let me return to the energy dominance financing though.
▶ 3:05:52Um, the office has roughly 200 billion in loan authority, over 100 billion in obligations, requires competent staff and really an apolitical, technically competent staff. Under the last administration, administrative expenses were $120 million, $120 million annually.
▶ 3:06:09I know that this administration wants to make cuts, but as congress goes through the appropriations process, I'm hoping you can speak to the need for administrative funding so that the office can continue to function and help drive increased deployment of clean baseload power like nuclear and geothermal. >> yeah. That leadership we have there is from the professional lending world. So we want to run it more like a real professional bank and not a bureaucratic government agency. >> those people have technical expertise that commands a premium and the private sector.
▶ 3:06:39And so they're going to need they need to be compensated. They need staff that that is commensurate with that. We need competent people doing this work because it's otherwise we're throwing bad money after bad if we don't. >> I absolutely agree it needs to be administered competently and, and, and I feel we have a very strong team there right now. I'm open for any dialog about that. It is an important instrument. I agree with you. It is going to help launch nuclear. It's going to help launch next generation geothermal.
▶ 3:07:07>> can you speak also in my last 10s on the federal support restriction, whereby certain edf programs cannot loan to projects that are expected to get any form of federal support? Obviously, it's 100% federal support. It doesn't make sense, but any federal support? >> yeah, I'm open certainly to a dialog on that. I wasn't around at the time that that rule, those rules were created. >> good. All right, I yield back. >> well thank you very much. Gentleman yields back.
▶ 3:07:32And the chair now recognizes the gentlelady from iowa's first district for five minutes for questions. >> thank you very much, Mr. chair. And thank you, secretary wright. Secretary wright, given something that my colleague on the other side of the aisle just said, I thought you might want to respond. He was talking about ripping up the rule of law. And would you consider canceling the keystone pipeline in 2021 as perhaps considered ripping up and the law? >> oh, 100%, 100%.
▶ 3:07:58Look, look, attacks on energy and attacks on building big things in america have dominantly come from the left, dominantly come from the left. Um desires to drive up the price of energy have been amazingly a political constituency. I don't say everyone's infected with it, but it has been, it has been rampant on the democratic side of the aisle. >> and certainly it's to the united states benefit to have homegrown domestic energy.
▶ 3:08:26President trump has certainly made it a pillar that we would have american energy dominance and american homegrown energy. And coming from a state such as iowa in the midwest and an agricultural state, biofuels, to me, emphatically fits into the president's agenda of homegrown domestic energy.
▶ 3:08:43So I'd like to get your opinion of where you think biofuels fits into the mix of any of the above and how that helps us, especially in this current global energy demand that we have and a lack of supply or reduction in supply. Given what's happening in the middle east. >> yeah, look, the united states is a huge producer of biofuels. We produce about 40% of all the planet's biofuels. And of course, your state, a huge leader in that.
▶ 3:09:12Our gasoline infrastructure today is basically based on having at least 10% of that liquid fuel content coming from ethanol. We don't have enough refining capacity to refine america's energy gasoline demand without ethanol. It's just part of the infrastructure now. And the question is, where does it go from here? Where are there areas for growth? Obviously, you need to have technology there.
▶ 3:09:39We need to have, uh, you know, cost competitiveness and all that. But yeah, as you just said, biofuels is a major part of american energy. It is. >> and given where brazil is with three growing seasons, the carbon negativity and already producing sustainable aviation fuel, I have some concerns with the alternative fuel and feedstocks now housed under the office of critical minerals and energy innovation, which is historically responsible for liquid biofuels and saf related
▶ 3:10:10Work. The account was reduced by about 98% from 400 million to just 10 million. So given how exposed jet fuel markets are to geopolitical disruptions, as we're seeing, can you help me understand how such a sharp reduction in liquid fuels, innovation funding align with your vision and the president's vision of american energy dominance with homegrown american energy and energy security? >> I think this is just figuring out scarce allocation of resource.
▶ 3:10:39Uh, this is an opening proposal from the administration. We're certainly open to dialogs about where to where focuses might be changed, where some things might be increased, some things might be decreased. >> we certainly appreciate that. And then, Mr. secretary, again, thank you so much for coming to iowa to visit the ames national laboratory. I think when we visited there, we talked a lot about entrepreneurship.
▶ 3:11:01We talked about how you turn basic research into spinoffs and startups that reach high technology readiness levels and create new american companies. So I have a little concern over the arpa-e funding, and I just wanted to get your take on arpa-e funding level, and then how you feel that the funding levels are going to improve the return on federal research investments that then support an entrepreneurial innovation ecosystem and new energy
▶ 3:11:32Generation? Perhaps? >> look, look, I've spent my whole life in energy innovation, in investing and innovating in the energy space. So of course, it's near and dear to my heart. I think the track record of arpa-e has actually been quite good. A lot of great innovations have come out of that because we bring private capital in together. They're small grants to sort of seed new ideas. I just came back from san diego last week addressing thousands, thousands of energy entrepreneurs and capital providers in the room.
▶ 3:12:03So I would say, look, I would look at the administration position as we requested the same funding we had last year. Last year, you plussed up the funding of that quite a bit. And I would say I very much welcome that. I think we got into the program like a lot of the programs, if you looked at what was done in the biden administration, just an embarrassing number of things were funded in there that had nothing to do with affordable, reliable, secure energy or making lives better for americans.
▶ 3:12:30So the program had a bad name, even though it had a good history. I think we've got it back on track and definitely want to work with you. I believe strongly in the program. >> I enjoyed listening to you at sara week in houston, and I yield back. >> thank you. The gentlelady yields back and the chair now recognizes the gentlelady from california seventh district for five minutes for questions. >> thank you very much, Mr. chairman.
▶ 3:12:51Secretary wright, um, since president trump dragged our country into yet another endless war in the middle east, the average cost of a gallon of gas in america has risen over 30%. Economy wide inflation saw the biggest monthly increase since the covid pandemic, and we haven't even begun to see many of the impacts. Fertilizer prices have risen nearly 50% because half of the global supply flows through the strait of hormuz. According to the farm bureau, 66% of farmers in the western U.S.
▶ 3:13:20Are unable to afford fertilizer for their crops. It doesn't take a genius to figure out what's going to happen to food prices. Secretary wright, last month you called rising costs due to the war, quote, a very small price to pay. When president trump was asked about rising prices, he said, quote, I don't have any concern about it. If they rise, they rise. Yes or no. Do you stand by those words?
▶ 3:13:48>> I serve in this administration to drive down the price of energy. And when we arrived, we had an energy emergency. We've made enormous progress, but we are attempting to fix a 47 year problem to energy supplies and global security. >> in my time, you tried to downplay the long term impacts of this war. But just this week, president trump said the cost of gas remain high through at least november. Do you disagree with the president?
▶ 3:14:14>> I don't think myself or the president know what the future prices of energy are, the length of the conflict. During this conflict, we have elevated energy prices. It is a very unfortunate cost. I would say I'm proud. This is a massive conflict that's being resolved, and we're still $1 a gallon cheaper gasoline than the biden administration. Seems like. That is. >> pretty clear, though. The president doesn't care about the cost of war anyway. >> he cares. Every day. >> he doesn't care about the cost of energy for everyday americans.
▶ 3:14:42Now, you can tell a lot about someone's priorities by looking at how they spend money. The president's budget proposes to steal $15 billion from critical infrastructure projects to prop up old coal plants and subsidize new fossil fuel power plants. Secretary. Right. Where exactly would the funding for these gas and coal plants come from?
▶ 3:15:06>> uh, there's funding from in previous allocations for work on coal plants, coal during the, the firn, the cold weather event we had here was the second largest source of electricity in the eastern half of the united states. It's critical to the american electric grid, the closure of coal plants by the biden administration. If we allowed that to continue, hundreds of americans would have died in the eastern us in january. >> well, you're planning to reallocate almost 30% of your budget, and you can't tell me exactly where the money is coming from.
▶ 3:15:36Congress authorized that funding for specific purposes. You can't just do whatever you want with it. What authority are you using to repurpose this funding? >> um, we have funding for coal. There's funding for carbon capture, which is a modernization of a coal plant. You have to have a working viable coal plant to add carbon capture onto it.
▶ 3:15:58We're trying to follow the rule of law and the allocations of funds, but actually do them to drive energy prices down instead of drive energy prices up. And I think americans are in favor of lower prices, not the higher prices. The democrats drove relentlessly in. The last administration. >> said previously that you opposed you oppose subsidies. You said, quote, the wind subsidies and solar subsidies are 33 years old. So it's about time for industries to walk on their own.
▶ 3:16:25Well, the coal industry is well over 100 years old, but you want to give them billions to prop up old failing coal plants. Is that not a subsidy? >> uh, not billions. There's a few hundred million dollars from the reconciliation bill last summer, which is to help reverse the withering attacks coal has been under for the entire obama administration and the biden administration. And these are short term modernization of plants. I don't want to have long term subsidies for coal. >> but it's still a subsidy.
▶ 3:16:55Um, your budget proposes to reallocate $750 million to upgrade our power grid with advanced conductors, which can carry more energy and help meet rising energy demand affordably. I think that's a great idea. I fully support the use of advanced conductors, but the $750 million is already being used for that purpose under the biden administration. In fact, that funding had already been awarded to california to support one of the largest advanced conductor projects in the country.
▶ 3:17:24California is charged. Tuti project was a 4 to $630 million to install more than 100 miles of advanced conductors and deploy other advanced transmission technologies, but you illegally cancel the project. Why? >> we looked at the specifics of the project to say, is it going to benefit american taxpayers? California produces less electricity today than it did five and eight years ago.
▶ 3:17:53California has done everything it can to raise the price of electricity and shrink the production of electricity. >> the. >> you gave. >> the story. The gentleman's time has expired. >> and I will have. >> if you would submit those in writing, then. >> questions for the record. >> thank you very much. Uh, the chair now recognizes the gentleman from texas 14th district, the vice chair of the subcommittee, for five minutes for questions. >> thank you, Mr. chairman. Secretary wright, we're delighted to have you here.
▶ 3:18:23Texas has a little bit of energy in it, you might have gathered. So thank you for that. On march 11th, 2026, president donald trump authorized the department of energy doe to release 172 million barrels of oil from the strategic petroleum reserve. I'm the upper gulf coast of texas. We start the louisiana border, come down on the curb all the way to matagorda county. We've got seven ports, 60% of the strategic petroleum reserve is in my district. Okay.
▶ 3:18:48So he authorized the release of 172 million barrels from the spr as part of the iea collective drawdown. A portion of that drawdown has taken place in bryan mound. S the name of the spr. That portion, brazoria county, and which sits directly in my district. Now, can you tell us, Mr. secretary, how much oil has been sold to date if you have those figures or not? And can you confirm how much more we expect to sell?
▶ 3:19:17>> uh, I think in our original round, we sold 42 million barrels and we just had another one that sold like 26. So we've probably sold about 70 of the 172 million barrels that will be sold. >> okay. >> and I'm sorry if I can correct myself. We're not selling the barrels. We're trading the barrels. We're putting barrels into the marketplace now because the marketplace is need them. And all these deals are structured as swaps. So we get that oil back late next year.
▶ 3:19:44The first tranche, we sold 1.2 barrels back for every one barrel we released. In our last deals, we got 1.25 barrels back for every one barrel we release. So at the end of next year, we'll have more oil in the spr than when we started these releases. >> texas is going to help with that, trust me. >> yes, yes, yes you are. >> additionally, because it is an interest of the federal government to be a good financial stewards of the spr.
▶ 3:20:10Um, and I don't mean to be picky, but can you tell us what authority the doe has to authorize that oil to be replaced? Is it just authority from the white house to conduct this? >> no, we are the managers of the strategic. It's like the federal energy act. I'm sorry. I'm not I'm not a lawyer. I don't know the exact authority, but we are the managers of the spr and we are members of the international energy agency. We coordinated not just our release, but with 30 other countries. >> right.
▶ 3:20:38Well, I'm glad to hear we're going to get the twofer, you know, that you described. So that's good news. Uh, as you know, uh, on march. Well, let me do it this way. As you know, the traditional oil market is global, making prices, price shocks unavoidable. However, we have seen a relatively stable, uh, stability in the us natural gas market. Can you explain why the us natural gas prices have largely been basically unaffected by the ongoing conflicts in the middle east, complete with iran?
▶ 3:21:07You know, it used to be at that helm. >> you bet. And natural gas recently is now just passing oil as the largest energy source in the united states for consumption. Those two energy sources give 72% of us energy. So they're the big two natural gas. We have just immense reserves in this country and immense production capacity. So to export it, you have to, you know, cool it and build these large lng export terminals. We run those at capacity.
▶ 3:21:36So even though world demand, you know, we are expanding our capacity. So we'll export more and more lng. But domestic gas consumers in the united states are pretty much completely isolated from this. Rising price of natural gas is less than $0.40 a diesel equivalent gallon. Today. >> you're describing exactly what I'm hitting at.
▶ 3:21:57On march 30th, 2026, golden pass lng, a company that operates in my congressional district over by beaumont, achieved its first production of lng, which represents a major step forward toward fulfilling president trump's goal of american independence. Companies like these provide thousands of direct jobs and billions of dollars back into our community.
▶ 3:22:20So how can we assure that economic opportunities like golden pass lng coming online boosts lng exports at the same time benefiting local communities like those in my congressional district plans to make that even even better for us, Mr. secretary. >> absolutely. I visited a number of lng export facilities. It is the fastest growing us export. I think it will soon be the largest export from the united states of america's natural gas. It's the fastest growing energy source on the planet.
▶ 3:22:49The future of of of natural gas is dramatic. We need to build these facilities to export. >> it in 30s. I'd like to quickly go back to the spr. Part of the rationale for drawing down the spr is because we're experiencing any shortage, energy shortage. The president put in a 60 day withhold on the jones act. I'm sure you're familiar with that. So we would like to know what safeguards we're going to get put in place so that we can make sure that the integrity of the jones act stays in place. >> they're restricted to only energy products as well.
▶ 3:23:17And frankly, the waiver on the jones acts is to get states like california that have made themselves an energy island so they can still get fuel during this crisis. The great energy sources for our. >> region to interrupt. But the gentleman's time has expired. >> thank you, sir, and thank you, Mr. chairman. >> thank you very much. The chair now recognizes the gentleman from new york's 20th district for five minutes for questions. >> thank you, Mr. chairman. Thank you, secretary reich, for your testimony before the committee subcommittee.
▶ 3:23:44I'll be honest that I have serious concerns about the priorities and direction of the department in the past 15 months, but I have limited time. So I'd like to focus on a few areas where I think that you may be agreeable. We know that energy costs are on the rise, and one of those things individuals can do to protect themselves from these cost increases is to invest in residential energy efficiency.
▶ 3:24:08The weatherization assistance program is the department's largest residential efficiency program, allowing low income households that receive services to save, on average, of $372 each year on their utility bill, is my understanding that doe still hasn't released the annual weatherization program notices, which are needed for states to apply for previously appropriated fy 26 funds. This guidance isn't controversial.
▶ 3:24:34It lays out things like how much funding will be allocated to each state, and how much money may be spent to weatherize each home, but without it, states can't develop their weatherization plans, and state's programs may be disrupted if it leads to significant delays in the release of funds. So, secretary wright, historically, this guidance would have been published by now. Can you commit to looking into the status of this guidance and publishing it as soon as possible? >> yes, I do.
▶ 3:25:01We've been working on the weatherization program this year as as we did last year, we tried to remove the things that make it more expensive. There was a social cost of carbon, like it was a decarbonization plan, not a low cost energy plan. Last year, we removed some of those restrictions on the funding and released it last year. And it should be, I think, ready this year as well. >> well, I appreciate that, and I'd like to see what changes you've made to the program, too. If you could outline that.
▶ 3:25:28Last month, a new memorandum of agreement was signed between doe and epa regarding the energy star program. This voluntary labeling program helps consumers make informed decisions when purchasing energy efficient appliances. After an initial proposal to eliminate the program last year, there was vocal opposition from consumer advocates and manufacturers. The administration has now indicated that primary responsibility for the program will move from epa over to doe.
▶ 3:25:57I did not see any mention of energy star in the doe budget requests, but epa's budget justification states, and I quote. In fiscal year 27, epa will support the energy star program as administered by the department of energy. One fte is allocated in this program project to support that work. Based on that, it seems that epa is already preparing to end its responsibilities. Historically, the energy star program has required about $35 million annually.
▶ 3:26:25Again, a very important program in light of the moa and epa's budget is doe seeking that funding as part of its budget request. >> uh, I'll have to get back to you on the details of that. But you started with saying a voluntary, uh, ratings on appliances. We're all for that. We're all for data transparency. >> I'm more concerned about the funding that is transferred to doe.
▶ 3:26:51Can you point to me where 35 million or more perhaps is is, uh, contained in the budget for doe? >> sir, I'll have to get back to you on that, I apologize. >> okay. Well, right now I don't see anything in there, so it would be good to know where it's, um, or it's included in light of the moa and epa's budget. Um, we need to move forward and make certain that that request maintains its integrity.
▶ 3:27:19While my personal preference would be to continue energy star at epa, can you at least give us some assurances that doe is already working to put the people and resources in place to seamlessly transition and manage the energy star program? >> I'll have to get back to you on specifics on the plans for that. >> transition, if we'll have the resources.
▶ 3:27:39Well, finally, we know that electricity demand is projected to grow significantly, but uncertainty around the development of large load facilities like data centers is making it more challenging to accurately predict future demand. Forecasting methods across regions and utilities vary, making it harder for grid operators to plan effectively.
▶ 3:28:00We need accurate forecasts to ensure that generation and grid infrastructure are built at the right scale and speed to meet demand, without risking unnecessary costs that will burden ratepayers. Ratepayers. Doe has amazing analytical and modeling capabilities in its office of electricity and the national labs secretary. Right.
▶ 3:28:21Do you believe that doe could do more to support grid operators, states and utilities, improve and harmonize their methods for forecasting electricity demand? >> absolutely. It is a major focus in this administration. Is the grid stability, uh, growing the capacity of the grid, all the things you talked about, that is a big focus. >> well, then I'm concerned about the 21% cut to the office of electricity budget. Uh, that might undermine that ability. But with that, Mr. chair, I yield back. >> thank you very much.
▶ 3:28:49The gentleman's time has expired and yields back. The chair now recognizes the gentleman from colorado's eighth district for five minutes for questions. >> thank you, Mr. chairman. Ranking member, Mr. secretary, always good to see a fellow coloradan. Um, we'll just go through some quick stats here and then I want to get your opinion on these. Uh, we know colorado made less electricity in 2025 than 2024, 58,000 gigawatt hours compared to 56,000 gigawatt hours.
▶ 3:29:19We know that. That's because not my data. The colorado energy office's data, via a study that they commissioned, um, says that colorado's far left energy policies are going to cost the state about $61 billion. And we know that's going to be passed on to ratepayers. And what's the result that we get out of all of that? Well, it's actually less reliable, more expensive electricity in the state of colorado.
▶ 3:29:44You, uh, were out at our largest natural gas generating station in the state, in my district, uh, just a few short weeks ago where we talked about that reliability issue. We've had multiple public safety power shut offs, um, because the state and the regulatory burden in the state can't get out of the way of making safe, affordable, reliable baseload generation and instead want to pass $61 billion in costs onto ratepayers in colorado.
▶ 3:30:09Um, boulder, colorado is telling their businesses, go buy a gas generator because the state can't keep the grid on and we can't keep the lights on. And so, uh, Mr. secretary, my first question to you, when we visited that generating station in colorado, we talked about that baseload, reliable, affordable energy. Talk about how important that is, not just to national security, but also to the economy in terms of being able to keep the lights on and make rates affordable for ratepayers.
▶ 3:30:40>> yeah. Look, the american electricity grid runs on natural gas, coal, nuclear, and in some places supplemented very nicely by hydro. That's how the lights stay on. That's how factories and things get built. But there has been a political and really, uh, anti mathematical desire to put on intermittent unreliable resources onto our grid.
▶ 3:31:03And everywhere their penetration gets high, the prices get more expensive, the grid gets less reliable. And the economics and of course, as I discussed earlier, the subsidies that go into it undermine the economics of the reliable sources.
▶ 3:31:17So it is absolutely insane to see what the state of colorado, the state of california, and under the biden and obama administrations, their desire to follow western europe and make electricity massively expensive and chase the industries out of our country and raise the prices on americans. I, I, I still cannot believe these policies are still so passionately defended when we know the ruinous consequences of them. >> thank you, Mr. secretary. I got three more questions.
▶ 3:31:47So I'm going to go quick here. We know we have to use not just current technology, but invest in future technology. We've, um, toured, uh, excimer, which is, uh, looking at fusion energy. So nuclear, but fusion, not fission. Can you talk about the doe's goals to align investments explicitly for commercial scale fusion? >> yes. Look, the progress in fusion, something I worked on as a college student, I'm super excited by.
▶ 3:32:13And what we're trying to do is use resources from the doe, either in basic science at our laboratories, neutron survivability, which materials can we, can we build, uh, heat transfer things that can survive the high energy neutrons from fusion reactions and then partnerships with various commercial businesses with milestone bases. Hey, if you can get to here, we'll fund, you know, x amount. If you can achieve this milestone, we'll find file more so that we sort of the funds flow to the successful businesses.
▶ 3:32:43But but zimmer I think has a tremendous technology and idea. And I'm excited to see fusion, uh, become a physical reality in the next few years. >> glad to hear it. Um, talking about looking forward to the future. We know there's a lot of threats to our grid and energy here in colorado. We've got the national lab of the rockies, which houses the itac program, the energy threat analysis center.
▶ 3:33:06Uh, can you just talk about what your, um, what your department is doing to work with labs like the national lab of the rockies, that public private partnership to protect our infrastructure. >> so edtech is critical because there's this facility we built in the lab where we have people from commercial utilities based there so that we can look at the grid on a broader scale, observe threats, see what we learn from how they are, and deploy lab technology to find ways to keep the grid more secure and more and rapid,
▶ 3:33:40More rapid grid studies to get interconnections done faster. So it's bringing together science, technology and commercial enterprises to drive the progress forward on the electricity grid. >> my last 10s you were talking about the jones act. Would love to hear your thoughts on that. >> yeah, I think it's very necessary thing to help tamp down the price of energy during during these interruptions of flows. In fact, if you look at the last 2 or 3 weeks under the trump administration, the price of of energy has basically been flat. The flows are still cut off.
▶ 3:34:09I think we'll be out of this in a few weeks. And I think that the navigation through it. >> will. >> be very successful. >> sorry to interrupt, but the gentleman's time has expired and the chair now recognizes the gentleman from texas, 33rd district. Five minutes for questions. >> thank you, Mr. chairman. Um, secretary, uh, on your very well prepared man, I don't think that we have to worry about you quoting false scripture from pulp fiction today. I think that you'll have good answers for everybody. Uh, but I'm going to be direct.
▶ 3:34:36Uh, this budget does not lower costs for americans. Uh, gas prices have surged by more than a dollar per gallon since january, and diesel is now over $5 per gallon. Uh, electricity and residential natural gas are both up 13%. Uh, and that's happening against the backdrop of growing global instability. Uh, the administration's war with iran has injected real volatility in the global oil and gas markets.
▶ 3:35:03And it's really driving a lot of uncertainty and putting upward pressure on prices. Uh, now, if you want to understand what that means on the ground, you don't have to look any further than my home state of texas and the permian basin. Uh, the permian basin, as you already know, is the backbone of american energy production. Uh, about 40% of the oil and gas production in the country, uh, hundreds of thousands of jobs across texas and tens of billions of dollars in state and local revenue that funds schools, roads, public safety, etcetera.
▶ 3:35:33Uh, but you cannot have energy dominance. And we talked about this before. You can't have energy dominance if you don't have an energy workforce. I think that is something that we would agree on. And right now, uh, if you look, uh, according to the permian strategic partnership, the basin is facing a shortfall of about 175,000 jobs, uh, and workers that are going to be needed by 2040.
▶ 3:35:58And instead of addressing the talent gap, this administration's pursuit of mass deportations is actively hollowing out the oil field. You probably saw the video of the roofers in midland that were being taken off the roof there by the fire department with ice in the permian basin. Uh, immigration, immigrant workers, including undocumented, uh, are not on the margins. They account for about 20% of the workforce and essential to operations. And when you round up workers from the permian basin, you are actually removing production capacity.
▶ 3:36:28Uh, and when capacity goes down, that means projects get delayed, costs go up, uh, outputs tighten and prices follow. It's really not that complicated. And so I want to make this very real. There was a worker in west texas, uh, oilfield services guy, years of experience, part of a crew responsible for maintaining whales. Uh, and he was detained during a routine traffic stop. Within a week, his crew was shorthanded and missing deadlines, maintenance work was delayed, and his family and wife and two kids, U.S.
▶ 3:36:56Citizens lost their stable income. Uh, that is the reality behind the policy. And you are not policing the worst of the worst. Quote, uh, with rap sheets that are miles long, you're detaining hard workers, and we are telling these workers that they are essential when we need their labor to hit production targets, but expendable when it comes to their families. Um, so secretary wright, which is it? Are these workers essential or are these workers expendable?
▶ 3:37:25>> uh, you and I have shared a lifelong passion about the american labor force and jobs and opportunity for people in oil fields, in rural areas, in all different industries. Um, that I employed thousands of, of workers whose native land were not born in this country, whose native language was spanish. So immigration is critical to our country. The difference or the focus of our administration is legal immigration, not illegal immigration.
▶ 3:37:52>> have you have you been given any directives, uh, to let oil and gas companies know that, that y'all are only targeting individuals that are, are that are the worst of the worst, as the president says, or have committed crimes. Have you sent directives out to oil and gas companies in the basin to let them know that. >> this is not my area of expertise. I'm about energy production and not about labor force and immigration. I understand your passion for the issue, but it's it's just not in my. >> but you do understand that there are people that are undocumented that are working out in the basin.
▶ 3:38:21You know that as someone that has been a ceo and this. And upstream energy production. >> yeah, I know that it exists. I would say it's a pretty small minority though. You know, the vast majority of the, of the workers that are from mexico and latin america that work in the permian basin and all across our country, the vast, vast majority of them are legal. >> and there are some jobs that they do that are, that are actually, uh, that were they were they do a high percentage of some of the harder and more dangerous jobs there.
▶ 3:38:49I want to ask you this in closing, um, as being a ceo of a oil and gas company, you got to, I mean, you probably had a gulf stream or a leer. You probably was were doing pretty good. Um, do you care about all of the employees that help you live that lifestyle, whether they're undocumented or whether they were here that were out there working their off, busting it out there in the, in the texas heat or wherever. Do you care about all of those workers? >> absolutely.
▶ 3:39:16You go ask the people that worked with me and I flew coach class my entire business career. No, no company pays for me to fly private. >> okay. Thank you. Thank you, Mr. chairman. >> thank you so much. The gentleman's time has expired and yields back. The chair now recognizes the gentleman from texas 12th district for five minutes for questions. >> thank you, Mr. chairman. Mr. secretary, thank you very much for being here. Um, let's talk about affordability.
▶ 3:39:41Uh, as my friends across the room like to talk about and it goes with gas prices, but more importantly, gas taxes. Every state is not equal, is it? >> know that the differences are pretty dramatic. We've made maps on this and they look like political maps. You want to know where gasoline is expensive, where electricity is expensive. Look in the blue states it same energy resources in this country.
▶ 3:40:07They are political choices across this country in blue states to make electricity expensive and to make gasoline expensive. So yes, it's a little rich when I hear this preaching that we are, uh, we, the trump administration who came in here to drive down energy prices and have actually been enormously successful in that regard. Um, one of the biggest challenges we have is pushing against the blue state policies that insist on impoverished their own people, insist on preventing resources from getting into their state.
▶ 3:40:39Um, I'm glad they're converts now to energy affordability. And if we can have the trump administration work together with politicians in blue states, wow, we can do great things. But this is a newfound conversion for me. >> and let's be more specific, the number one state in the nation with the highest gas tax, california, uh, actually was watching a tv show the other day, and the reporter was aghast of how high the tax or gas prices were, and it made the impression that it was a nationwide average.
▶ 3:41:06So, I mean, when you have policies like that, specifically in the state of california, the number one state with the highest gas tax, it makes a difference to those californians who are trying to make it every single day. >> oh, it does, and it's more than the gas tax. There's all sorts of regulations and overlays on the production of gasoline in california that drive it up. Yes, they have the biggest gas tax, but gas tax. But how do they achieve $2 higher than the national average?
▶ 3:41:35That takes more than just high taxes, but they add on and add on. In fact, they're adding on a new carbon tax, which is what's pushed out two of the refineries they have. Imagine what energy prices are going to have when you can't even refine enough. And you got to ask refiners in vietnam, which they are, will you produce california blend gasoline? We have this weirdly expensive custom blend. We want it to make it for us in vietnam and then ship it across the ocean.
▶ 3:42:00And then we're going to call ourselves green as we sell our wildly expensive gasoline to our consumers and are proud of our highest adjusted poverty rate in the nation. Uh, my guy, we heard congressman evans talking about my state of colorado and what is my home state of colorado want to do full of abundant energy resources, everything they can to drive up the price of electricity, gasoline, and energy of all sorts. These are political choices, expensive energy. >> that's a choice. And therefore affordability.
▶ 3:42:27And the consumer at the end of the day, is going to pay higher prices for all that. When you have those policies and those states. >> reduce life opportunities, reduce health opportunities, reduce job opportunities. >> and you touched upon natural gas earlier, of course, being from texas, incredible producer of natural gas. Talk about if we were able to expand that and put that in pipelines across the united states.
▶ 3:42:49And when you when you don't, when you when the keystone pipelines approved and then you don't build it, the effect of that on many of our colleagues, uh, constituents up in the northeast. >> pipelines are a major part, a major part of energy affordability, a major part of where factories are going to be located, where data centers are going to be located. You're so right. I was in new york two days ago. We have not built a pipeline that crosses state boundaries in this country for something like eight years. That's outrageous.
▶ 3:43:19And there was a belief that with the power democrats have, we may never build another interstate pipeline. I came into this administration saying we must fix that. And why must we fix it? Because new england, six states in new york state have ridiculously high energy prices, and they're next to an amazingly abundant, low cost supply of gas in pennsylvania. But they've somehow put up their hands that they don't want a pipeline to bring them more of it. It's their largest source of electricity.
▶ 3:43:48It's their largest source of industrial fuel, and they want to pretend they don't like it and stand in the way of it. We could dramatically lower prices and create jobs. >> it's also leading the people of america to think that pipelines already don't exist across our country, when they actually do all over. >> millions of miles of pipelines. It's why america has the great industrial past. We've had that energy massively more affordable than than european nations and so many nations around the world.
▶ 3:44:17But yet we. Yeah. >> I've got 15 seconds. I want to follow up on, uh, congressman, real quick, smrs, do we have any timeline of when you think the first smr in america may come online? >> well, we will have reactors critical smrs running by july 4th of this year. They won't be plugged into the electricity grid selling electrons. That's probably still three years away. I hope we get electrons on the grid during the trump administration. But that's an aggressive goal. >> thank you sir. >> thank you very much. The gentleman yields back.
▶ 3:44:47The chair now recognizes the gentlelady from washington's eighth district for five minutes for questions. >> thank you, Mr. chairman. Thank you, Mr. secretary, for being here today. Um, first, I, uh, I respect the noble goals of making energy more affordable and more abundant. And so it pains me that since you were last here making those promises, things have actually gotten worse from the perspective of my constituents.
▶ 3:45:15Uh, you've heard from nearly everybody in this room about how families are struggling to pay their bills. Um, and much of that is because of the price of utilities and gas are way up, especially in the last six weeks or so, um, since this administration took, uh, took office, my constituents are paying 17% more on their utility bills in washington state, outpacing even inflation, which is at its highest level in two years. And this war.
▶ 3:45:43President trump's war in iran continues to drive up costs, not just at the gas pump, but also at the grocery store and with airline flights and everything else. And he continues to also put american lives at risk. Um, and as the president has thrown us into this expensive and dangerous foreign war with no end in sight, our service members and my constituents are being forced to pay the price.
▶ 3:46:07Um, it's really going to take all of us in this room, uh, to, to rein in this president and his erratic actions. Um, as prices continue to climb. Uh, I was seeing hoping we would see more actions to make energy more abundant, lower prices.
▶ 3:46:24You've talked about some examples, but I'll tell you that several months ago in this committee room, I expressed some frustration about this administration's policy of forcing coal plants to remain online, even if plans for closure or transitions were already underway. And specifically, I spoke about the centralia coal plant in washington state, uh, a plant that had stopped energy production from coal was in the process of transitioning to natural gas.
▶ 3:46:52Um, and then had to pause. And so just yes or no. Are you familiar with the centralia power plant? >> uh, I am a little bit. >> okay. Um, it, it is a plant like I just described that was, uh, scheduled. I mean, had already stopped producing energy from coal and was in the process of transitioning. And, um, now it's been sitting idle. Uh, it still costs money to keep it there and idle and keep the employees there.
▶ 3:47:21Uh, my constituents are paying the price and, um, it has contributed zero energy to the grid. Um, are you aware that it still is costing money to ratepayers and that this power plant is producing zero energy? >> what is the the right way to transition a plant from coal to gas is to build the gas infrastructure and have the gas ready by the time the coal shuts down. So you don't take firm, reliable electricity off the market.
▶ 3:47:49That's what drives blackouts. That's what drives electricity prices to go up. >> so it hasn't been producing. We rely on hydropower. We are getting by just fine. But there is a predicted need for this by 2028, which is when the gas power plant was scheduled to come online. Like everything was well planned and underway.
▶ 3:48:07And, you know, I guess what I would like a commitment from you on is that you will look at this and you will stop the, uh, pause order on this because it was scheduled to come online when we predict to need that energy. And you may be your department may be actually putting us more at risk. >> of course, we will look at that again. But I will tell you, if there was an order to keep the plant open, it was for a reason.
▶ 3:48:36It was because there was a grid reliability study or something that showed a risk of closing that coal plant. We would have had hundreds, hundreds of people dying in january of this year if we had carried out the coal plant closures that were that were needed. And they were. >> you should be you should be selective. We did not have that crisis in washington state. We have great energy planning. We knew it was, you know, in 2028 we could be at risk. It was not producing energy. We rely on hydropower. In this particular case.
▶ 3:49:05It should not be a blanket order. And I believe that this is because of our president's obsession with coal. And, um, I just I'm frustrated by the answer. And I hope you will consider not having a blanket rule. >> and we have been selective. It is not a blanket rule. And yes, we'll look at it again. >> thank you for looking at it again. The other thing that I just wanted to mention with my 30s left is that hanford is a real priority in washington state.
▶ 3:49:32We're worried and the process is underway for vitrification and dealing with the cleanup of chemical toxic waste, radioactive waste. But one of the really important elements is that some of these tanks are leaking, and it's really important to monitor groundwater because those toxins, the chemicals and the radiation are approaching the columbia river. And that is the lifeblood of the northwest.
▶ 3:49:57Um, the president's budget, your budget, uh, zeroed out groundwater monitoring for safety. >> the gentleman's time has expired. >> um, I would like you to look at that and repair the budget so that we can protect the columbia river. Thank you. I yield back. >> with that in writing. Thank you very much. Gentlelady yields back. The chair now recognizes the gentleman from south carolina's seventh district for five minutes of questions. >> thank you, Mr. chairman. Secretary, thank you for being here today.
▶ 3:50:25South carolina is a proud, uh, nuclear energy leader. Uh, and there's a strong interest in expanding nuclear power at existing sites, uh, such as the vc summer plant, which was at one point a bad word, a four letter word in south carolina is now kind of undergoing a renaissance. Um, they do that to support reliable baseload power and our state's growing economy.
▶ 3:50:47Uh, however, affordability obviously remains critical, uh, in our c licensing reforms under the advanced act are important, yet cost supply chain issues, financing and grid integration remain major barriers. As I know you're fully aware, the nuclear renaissance is here, and certainly south carolina is a leader in that effort. Um, I understand that the doe is planning to develop with a state or several states nuclear lifecycle innovation campuses.
▶ 3:51:17Uh, this is a promising initiative to help secure our nuclear fuel supply and address our future disposition needs. Um, there is a final disposition piece associated with the request for information, though the nuclear waste policy act, as amended, clearly states that only yucca mountain can be considered for final long term repository for high level waste and spent fuel with the with the doe engage, uh, the energy and commerce committee or congress generally on statutory changes to expand that or tell me about the the,
▶ 3:51:50The parameters here on what the department of energy was thinking on that request for information. >> yeah, I think it's likely there'll be there'll be a necessary engagement on the statutory laws regarding long term waste disposal. We're developing as a solution that'll that'll ameliorate or remove the need for yucca mountain. And I think there will be a comeback to say, hey, this is this is the right way to deal with the problem. And if there's necessary changes in the laws, we'll come to work with you to achieve those. >> okay.
▶ 3:52:19So you envision a scenario where it would expand beyond yucca? >> absolutely. I don't think the long term waste repository in this country is going to be yucca mountain. That government decided to place it there and impose it on people, and they rebelled against it as you as you know, and laid out, we went out to said, who, who's interested in hosting these, uh, nuclear lifecycle innovation campuses. 28 states came back and said, pick us. We're the place. We'll do it. And it's great.
▶ 3:52:48We're going to have a strong competition for that. And we will have multiple, uh, I think locations where we've got strong public support, huge economic benefits for fuel fabrication, fuel enrichment, fuel reprocessing, and long term storage of spent fuel rods. >> thank you for that. Customers of our nation's nuclear utilities, including many of the citizens in our state, half of them actually have paid tens of billions of dollars to the nuclear waste fund to pay for the disposal of nuclear fuel.
▶ 3:53:17Uh, and the balance of that fund is about $50 billion. Uh, can you assure my fellow south carolinians and really the country, um, that the n w f dollars will be used for disposal related activities strictly as they were intended? >> um, yeah, absolutely. That that is the intention. You know, this is a growing problem and a state like south carolina that has so many nuclear resources.
▶ 3:53:43The federal government was supposed to have a repository by the, in the, in the previous century. We need to get on that. We need to deliver that. We need to use the funds that were allocated for that to get the mission done. >> thank you. Secretary. Um, building off the advance act, though, the nrc is moving to expedite licensing on existing sites, uh, which is welcome.
▶ 3:54:00It's great news, um, for predictable regulations, uh, licensing should not be a huge major barrier to deployment of safe designs, but supply chain timing and cost can also be a barrier. Can you talk about the efforts of the loan office to help reduce those supply chain costs, uh, for long lead nuclear components. Is there a large role for the department of energy here? And additionally, how will doe safely, uh, or safety authorizations work to assist in our c commercial licensing?
▶ 3:54:32>> yes. Yeah. We work very cooperatively with the nrc, in fact, on this advanced reactor test program, these small reactors were going to have critical. This year, we have a number of nrc employees detailed over to doe working side by side with us. We have authorizations for safe operation of these plants, but not for long term commercial operation to sell electricity. That's the business of the nrc, but we're working together to get test reactors going, so the doe and them can see them.
▶ 3:55:00Uh, we are working to get enrichment stood up in this country, fuel fabrication up in this country. As you rightfully mentioned, the supply chain is just atrophied because we haven't built any nuclear plants in a long time in this country, with exception of vogel three and four. And we need to get that industry stood back up. And the doe is playing a very active role, both with financial grants, with regulatory reforms, with loans, everything we can to get nuclear moving again. >> and I think you're right. And, Mr.
▶ 3:55:27Chairman, I know my time has expired, but, uh, there's a very excited ecosystem out there of people who are ready to see nuclear again in this country. And with that, Mr. chairman, I yield back. >> the gentleman's time has expired, and the chair now recognizes the gentlelady from texas seventh district for five minutes for questions. >> well, thank you, chairman latta, and thanks to you and ranking member castor for this hearing. Secretary wright, I am glad to have the opportunity to ask you questions again today and appreciate you being here to answer them and accommodating the kind of crazy schedule we have.
▶ 3:55:57I'm really glad to get these questions in before the vote start again. Um, and we've covered a lot of ground here today. Uh, I can't and won't have time to revisit all of it. Um, but there are a few things that I have heard today in this hearing that I want to touch on briefly.
▶ 3:56:13And, um, early on in the hearing, secretary wright, you testified that the administration is releasing from the strategic petroleum reserve in response to high prices, um, and contrasted it with the releases from the spr during the biden administration. And, um, I think, uh, you said that there were no disruptions in the market during the biden administration to justify releases from the spr in contrast to today.
▶ 3:56:39But I think you misspoke because certainly, you know, from your years of experience that it's a global market. And in 2022, there were disruptions after russia invaded ukraine that set off a series of supply disruptions in europe and beyond that affected global prices. Um, as did our decisions here in this country and in this congress, uh, to sanction russia for its illegal war. And so I do think that's important context.
▶ 3:57:06If I had a lot more time, I would talk about how I had a bill that introduced during the first trump administration in the early days of the covid pandemic to fill up the spr, um, when oil prices were at record lows. Um, but I have to move on. Uh, we did not do that then. And I do wish we had, um, I do want to touch briefly as well on part of your exchange with congresswoman castor where she raised questions of trust, um, and how industry can trust the process, right?
▶ 3:57:31And, and trust the government that they can make these investments that they want to make, that we need them to make. Um, if grants are made and then revoked, if permits are made and revoked. Congressman klaus talked about it a little bit as well. And look, I disagreed with president biden on revoking the keystone pipeline permit. Um, I disagree with president trump on revoking the wind permits. Um, and these issues transcend just one administration, right?
▶ 3:57:59I mean, the issue is whether folks in the industry can trust the united states government to be a reliable partner, but we should be doing everything we can to make sure that that is the case. Because you know better than anyone, we need these investments and we need the us government to be a reliable partner and to know the rules, no matter who's in charge. And so that's the the issue you're hearing on this side of the aisle is revoking all of these, um, these grants and these permits is a huge challenge.
▶ 3:58:26And I know this because of the people that I represent in houston are a lot of the people doing a lot of this work. And you know, as you and I have discussed in this room before, I'm lucky to have their expertise in forming the work that I get to do here in congress. So I know that for years, for decades, energy professionals have been contemplating what would happen if iran closed the strait of hormuz.
▶ 3:58:51And, you know, others have been talking already today about kind of the state of the world. So I'm going to skip over where we are. Um, but even the dallas federal reserve energy survey industry executives were saying that the war in iran is wreaking havoc in the industry and that it feels like we've lost control of the iran war. And if the state doesn't open soon, we're looking at oil at $170 a barrel. So we have a real issue in front of us.
▶ 3:59:16And I, I was surprised to hear I'm definitely going to run out of time for questions here, but, uh, the president said twice that iran's retaliatory strikes against the gulf states and the state of strait of hormuz were a surprise to him. He said they weren't supposed to go after all these other countries in the middle east. Nobody expected that. And we were shocked. Now, secretary. Right.
▶ 3:59:41I saw your exchange with representative delauro yesterday where she asked you that question, and you said you did anticipate this possibility. And frankly, that makes a lot more sense. I saw secretary clinton say this was in every war plan, every, you know, scenario they anticipated. So the president's statements make no sense. But I want to ask you a few questions about this. I know I'm going to have to submit some for the record, but were you consulted about the possibilities and potential outcomes in invading iran? >> yeah, of course.
▶ 4:00:10I've been in dialog with the president across the administration about the iranian problem and potential solutions to the iranian problem. So, yes, and we've been in dialog about that. >> and the closure in particular of the strait of hormuz. Yes. Okay. And did you know. >> you did not think it was a surprise? He thought it was a surprise. The president trump thought it was a surprise that iran would attack oman, that iran that iran would attack azerbaijan. Iran attacked countries that have not been foes of them immediately.
▶ 4:00:40Nobody expected them attacking every country in the region. >> I'm going to run. >> out of the closure of the strait of hormuz was not a surprise to anyone. >> I'm I'm going to run out of time here, so I'm going to have to yield back questions. >> if the gentlelady would suspend. We're trying to get the other members in before votes start. So if the gentlelady would like to submit her questions to the to the record for the witness, we'd appreciate it. Uh, she yields back.
▶ 4:01:06The chair now recognizes the gentlelady, the at large member from north dakota for five minutes. >> excellent. Thank you, Mr. chairman. Appreciate it. Um, secretary. Right. Thank you for your leadership and for your clarity, your clarity on energy policy for our country. You are better able to express the connection between policy cost, national security and quality of life than just about anybody.
▶ 4:01:39Um, I've seen in this, uh, in this environment. So thank you for that. Every time we have one of these hearings, I find myself sighing a lot, uh, over a comments being made by my colleagues on the other side. And I'm always reminded of the ronald reagan quote. And he said, the trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so.
▶ 4:02:08And when it comes to the energy policy that they're advocating for, uh, it just isn't so that a green energy grid is ever that is reliable. If you want it to be reliable, it will never be based on today's technology, cheaper. It just can't happen. It just won't happen with today's technology.
▶ 4:02:34And so, um, it's very frustrating to hear claims that the costs that are going up are the result of our policies when we just absolutely know that it's the cost of the policies that have been pursued very aggressively by the left for the last ten years that have resulted in that basically dismantled our power grid and are resulting in this significant price spikes across the country.
▶ 4:03:02So it's absolutely dishonest, and I really appreciate your consistency in pushing back on that. The solutions are pretty clear though, and you guys are pursuing them. We need to stop retiring resources that are already on the grid. When we had jim rob here from newark just a couple of weeks ago, he said, still, we're facing a reliability risk. We don't have enough power to meet demand as it is today, so we shouldn't be retiring, stopping to retire.
▶ 4:03:33You guys are doing that with your efforts. Thank you for that. I'm trying to back you up with some legislation that would do just as you had said in your conversation with the gentlelady from washington. Before we retire existing resources, we should have the new ones connected to the grid and ready to go. That's just what americans expect. We should optimize what we have already, which you're also doing with your investments in high capacity grids, etc.
▶ 4:03:59Again, I have a piece of legislation to reinforce that. So would appreciate your advocacy on that behalf and then grow. I just want to want you to talk a little bit about your efforts to help grow our energy production, especially as it relates to enhanced oil recovery in the bakken, which you've been to north dakota. Thank you. Uh, we have a declining curve of production. We need some new technology.
▶ 4:04:30We're investing in carbon, um, carbon capture and enhanced oil recovery. I would like to hear your thoughts on that and what kind of promise it has for places like the bakken and other of our gas, oil and gas resources in the country. >> you bet. Thank you, representative for dorchak. And yes, you bet. As a fellow energy nerd, you've been a great partner on these dialogs because you care about energy and you do the math. Um, and so that's been a great partnership. Thank you.
▶ 4:04:58So again, I know you know this stuff, but when we produce gas from shales natural gas, we can get 40, 50, 60, 70% of the gas out of the rocks. It's awesome. When we produce oil, a more viscous, much more viscous substance through these very low permeability rocks, we under primary production, normal production, we only get about 10% out, 90% is still in the rocks.
▶ 4:05:26You and I know we're not going to leave 90% of that oil still in the rocks. I started my career in california, working in oil fields at the time that were from the 19 tens and 1920s. Oh, they'll be done in 20 years. No technology evolves and production continues to move along. And the same thing needs to happen and will happen in shale. How do we get the other 90% of the oil out? There's lots of different ideas. We're going to test them. North dakota in the bakken shale will be one of those key test areas.
▶ 4:05:56We're going to inject ethane gas. We're going to inject propane gas. We're going to inject co2. We're going to find what's this right formula that's going to let us get another 5 or 10% doubling the recovery of oil from the bakken. Will it be injected in the same way as you produce or inject an offset wells. How will we you know, this is research and technology. This is what america does. This is what north dakotans do. >> and pardon me, the gentlelady's time has expired. Let members know we're.
▶ 4:06:23With ten minutes and 38 seconds left in the vote, and the chair recognizes the gentleman from ohio sixth district for five minutes. Mr. chase. No, he came in at 130. Mr. okay. I'm sorry. Mr. I'm sorry. The chair recognizes the gentleman from michigan's 10/10 for five minutes for questions. >> ohio. >> that's blasphemous, Mr. chairman. Blasphemous.
▶ 4:06:51Thank you, Mr. chairman, for holding this very important meeting here today. And thank you, Mr. secretary, for being here. Uh, what we saw during winter storm fern should be a wake up call for michigan because when the grid was under maximum stress, the truth became very clear. Reliability is not theoretical. It's tested in moments like these. Look at new england at the peak of the storm. They were relying on wind and solar. They were burning fuel. They weren't relying on wind and solar.
▶ 4:07:21They were burning fuel oil for 35% of their power, natural gas for 32%, and even garbage and wood to keep the lights on. Wind just produced 2% solar, effectively zero. Now think about that. Even if you doubled wind capacity, you're talking about 4%. If you doubled solar, you're still at 0%. When the sun isn't shining during winter storm. These are not reliable sources when you need them the most.
▶ 4:07:49And let's be honest about the environmental reality burning, archaic fuel oil, wood and garbage for power is far worse for the environment than modern natural gas or nuclear energy. That's not the example that we want to follow in michigan, but that's exactly the path that lansing's net zero mandates are pushing us toward. They are forcing reliable thermal generation off the grid while flooding the interconnection queue with intermittent wind and solar that clearly don't perform during peak demand.
▶ 4:08:18At the same time, we're seeing those efforts to shut down critical pipeline infrastructure like line five, which would weaken energy supply and push michigan closer to the same constraints that new england faces today, where limited pipeline capacity forces greater reliance on fuel, wood and refuse during emergencies. So we're replacing dependable power with conditional power and secure infrastructure with uncertainty. That's insane. That's how you create a reliability crisis.
▶ 4:08:49Newark has already called this a five alarm fire, and michigan is directly in the impact zone. We should be learning from what happened in new england, not repeating it because the next storm is going to hit and it's not going to be about ideology. It's going to be about whether michigan families have heat, whether michigan families have lights, whether our grid holds up under pressure and whether michiganders can actually afford it. Right now, we're moving in the wrong direction and we are going to change course, hopefully, with your help, Mr. secretary, in the trump administration.
▶ 4:09:16So really quickly, during winter storm fern, we saw exactly which resources showed up when americans needed that power the most. You've spoken about the importance of reliability during that storm. So my question is this how do aggressive state net zero mandates, which are accelerating the retirement of dispatchable generation, align with your responsibility to ensure grid reliability, especially in regions like miso that are already facing elevated risk.
▶ 4:09:44>> so they're directly contrary to that objective, directly contrary to that, thank you for your fantastic exposition of how energy actually works. Um, and they're justified in the name of climate change or net zero. They're almost completely irrelevant in that world as well. Almost completely. California has gone way down this road. And what does it mean? It just means industry left california.
▶ 4:10:08The admissions just left california with the businesses and the jobs and they and electricity overall in the country is about 20% of energy. In california, it's less than 15%. So they, they, they reduce the carbon intensity of something they strangled. And and it's still the biggest source of electricity is natural gas in california, hydro and imported power from other states. So thank you for your passionate championing of just this. Do the math. Energy is about humans.
▶ 4:10:37>> this energy is about humans, and we are about common sense. Something else that's about common sense. If you can expound on this really quickly, um, your financing arm spent billions of dollars prioritizing intermittent energy projects like wind and solar in your in your predecessors years. Now, as we move forward toward energy dominance under your leadership and the president's agenda, can you discuss the priorities of the department's financing programs to shift to firm, supportive, dispatchable technologies and domestic critical minerals supply chain? Yes.
▶ 4:11:07>> we want to support things that will lower cost and increase job opportunities. It's pretty common sense. So we're supporting the restart of two nuclear power plants upgrades, updates on hydro plants, construction of new natural gas plants, extending the life of existing nuclear plants, making conductors so electricity can move around more efficiently. But in summary, the biggest objective when we evaluate these loan opportunities, what's the impact going to be on increasing the supply of electricity and decreasing the cost? Just those two objectives.
▶ 4:11:37Does it give us more electricity? Does it lower the cost? The previous biden administration, the same loan program office, never considered the cost impact of electricity, and almost everything they lent on was going to reduce the production of energy. So it's basically a 180. >> thank you for your leadership. My time has expired. >> thank you. Gentleman's time has expired. Yields back. The chair now recognizes the gentleman from pennsylvania's 13th district for five minutes for questions. >> thank you, chairman lada. 250 years ago, american freedom was founded in pennsylvania.
▶ 4:12:07And now, 250 years later, pennsylvania energy is allowing america to be once again energy dominant. I want to applaud you, secretary reich, for the work that you're doing at the department of energy, because under your leadership, winter storm firm earlier this year, the use of emergency 202 c orders during this extreme weather event allowed our electrical grid to withstand significant spikes in demand.
▶ 4:12:34Make no mistake, our grid survived this most recent storm too, due to generation from coal, from natural gas and from oil. These reliable dispatchable power sources are essential, yes, essential to grid stability. That is why I was proud to see the recent doe announcement, along with epa and the department of interior, on the groundbreaking of the northeast supply enhancement pipeline.
▶ 4:13:02You and I know that pipelines transmit energy safely on this committee. I have long advocated for the northeast to utilize the abundant natural gas that is underneath the feet of my constituents in pennsylvania. For years, political obstruction has prevented the build out of the necessary infrastructure to make what is truly a common sense solution. As a result, the northeast has suffered.
▶ 4:13:26They've suffered from high energy prices, and in cases of demand, spikes have been forced to import foreign lng rather than relying on domestic energy produced in my home state, lack of natural gas infrastructure even saw new england turn to burning trash for power when wind and solar proved unreliable. During this recent winter storm, your work and president trump's work to secure the necessary permits to move this project forward corrects years of inaction.
▶ 4:13:56And as you can tell, I'm excited to see the benefits of this completed project and what they will provide to the natural gas producers in pennsylvania. Secretary wright, can you talk about how the american energy dominance agenda aligns with our national security goals? >> yes, indeed. And thank you for your leadership in pennsylvania, congressman, and thank you for the great state of pennsylvania.
▶ 4:14:22It has been, as you said, an energy powerhouse from the start of our country. The modern world began with the mining and harvesting of coal. Life expectancy grew, life opportunities grew, women were liberated. The world became a massively better place because of the arrival of coal, changing the social structure and the economic opportunities of our world. And then today it's moved. Coal is still critical. During that winter storm furnace, you said it was the second largest supplier of electricity after natural gas.
▶ 4:14:53Number one was natural gas. Number two was coal. What is pennsylvania big in number one. And number two, penn nuclear power as well. So yes, if we can have affordable, reliable, secure energy in our country, we can reshore the industry's be pushed overseas. Everything that we import from china and overseas in asia during covid, well, we can't get that stuff. That's because we pushed that manufacturing out of our country with affordable, reliable, not just electricity, but home heating and process heat.
▶ 4:15:22We can reindustrialize our country, bring those jobs in critical manufacturing back into our country. We can lead in the next energy intensive manufacturing industry, which is artificial intelligence, and in pennsylvania, of course, is perfectly suited to be a leader of that because of our energy resources. And if you can bring common sense energy policy and and reasonable permitting. Wow, I think you're going to see a boom in your home state. Secretary wright, what further.
▶ 4:15:48>> steps do you feel should take should be taken specifically regarding natural gas that allowed the abundant reserves in pennsylvania to be utilized in the northeast? >> well, as you said, the recent the reserves and the technology and the workers are there. Oh my god, you could double production in pennsylvania. Right now. The limit is pipelines. There's only so much gas that can be moved. That's how much can be produced. So this pipeline is going to help new york city and long island.
▶ 4:16:14We also need the constitution pipeline that would also come from your state of pennsylvania and bring gas to upstate new york. And all six new england states lower the cost of electricity, allow jobs in manufacturing in the new england states and upstate new york using gas from pennsylvania. And of course, you can have all sorts of manufacturing and other demand centers in pennsylvania to use this, you know, god given resource you sit on top of. >> thank you again, secretary wright.
▶ 4:16:42Thank you for your leadership at the department of energy. I look forward to working with my colleagues on this committee to continue to advance our shared energy goals. Thank you, Mr. chairman, and I yield back. >> well, thank you very much. The gentleman yields back and seeing no other members wishing to ask questions. Mr. secretary, thank you very much for appearing before the subcommittee today. Members may have additional written questions for you.
▶ 4:17:04And I remind members they have ten business days to submit additional questions for the record, and I ask that you could respond as best you could in ten business days. Upon receipt of the questions, I ask unanimous consent to insert in the record the documents included on the staff hearing documents list. Without objection, so ordered and without objection, the subcommittee is adjourned. >> thank you, Mr. chairman. >> thank you.